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03/01/2011 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES March 1, 2011 The Edmonds City Council meeting was called to order at 7:01 p.m. by Mayor Cooper in the Council Chambers, 250 5`" Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Mike Cooper, Mayor Strom Peterson, Council President Steve Bernheim, Councilmember D. J. Wilson, Councilmember Michael Plunkett, Councilmember Lora Petso, Councilmember Adrienne Fraley- Monillas, Councilmember Diane Buckshnis, Councilmember ALSO PRESENT Peter Gibson, Student Representative 1. APPROVAL OF AGENDA STAFF PRESENT Gerry Gannon, Assistant Police Chief Stephen Clifton, Community Services/Economic Development Director Phil Williams, Public Works Director Lorenzo Hines, Finance Director Rob Chave, Planning Manager Carl Nelson, CIO Debi Humann, Human Resources Director Frances Chapin, Cultural Services Manager Rob English, City Engineer Scott Snyder, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER WILSON, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Council President Peterson requested Item B be removed from the Consent Agenda and Councilmember Petso requested Item D be removed. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER BERNHEIM, TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL C. APPROVAL OF CLAIM CHECKS #124040 THROUGH #124124 DATED FEBRUARY 24, 2011 FOR $434,357.55. ITEM B: APPROVAL OF CITY COUNCIL MEETING MINUTES OF FEBRUARY 22 2011 Council President Peterson referred to page 3 of the February 22 minutes, advising Joan Bloom was incorrectly quoted during Audience Comments which has been verified by the City Clerk. The minutes should read, "I understood there would be two comment periods and that you would narrow the field on Edmonds City Council Approved Minutes March 1, 2011 Page 1 the 15`" so I sent an email out and expressed my concerns and received an email back from D. J. Wilson which was forwarded from Adrienne Fraley- Monillas with charges laid out against Gary McLean." COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER PETSO, TO APPROVE ITEM B AS CORRECTED. MOTION CARRIED UNANIMOUSLY. ITEM D: REVIEW AND APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR LAND USE HEARING EXAMINER SERVICES. Councilmember Petso explained she would vote against this item as she had concerns with the selection. She expressed her appreciation for administration's efforts to tighten up the contract. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER BERNHEIM, TO APPROVE ITEM D. UPON ROLL CALL, MOTION CARRIED (4 -3), COUNCIL PRESIDENT PETERSON AND COUNCILMEMBERS FRALEY- MONILLAS, BERNHEIM, AND WILSON VOTING YES; AND COUNCILMEMBERS PETSO, PLUNKETT AND BUCKSHNIS VOTING NO. At 7:06 p.m., Mayor Cooper announced that the City Council would meet in executive session regarding potential litigation. He stated that the executive session was scheduled to last approximately 15 minutes and would be held in the Jury Meeting Room, located in the Public Safety Complex. Elected officials present at the executive session were: Mayor Cooper, and Councilmembers Bernheim, Plunkett, Fraley - Monillas, Buckshnis, Peterson, Petso and Wilson. Others present were City Attorney Scott Snyder, Public Works Director Phil Williams, City Engineer Rob English and City Clerk Sandy Chase. The executive session concluded at 7:13 p.m. and the Council meeting reconvened at 7:15 p.m. 4. POTENTIAL ACTION REGARDING A SETTLEMENT AGREEMENT WITH NANSI KARLSTEN. Councilmember Plunkett recused himself from the discussion and vote on this item because the real estate broker used to do an analysis is a friend of his and works in his office. He recommended the real estate broker and although he does not receive a fee for the recommendation, he felt it appropriate to recuse himself. Councilmember Plunkett left the dais and the Council Chambers. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE SETTLEMENT AGREEMENT WITH THE TERMS DISCUSSED IN EXECUTIVE SESSION. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett did not participate in the vote.) City Attorney Scott Snyder advised this matter was not included in the budget; therefore a motion is required to appropriate funds subject to the mid -year budget adjustment. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON, TO APPROPRIATE FUNDS SUBJECT TO THE MID -YEAR BUDGET ADJUSTMENT. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett did not participate in the vote.) Mr. Snyder advised the funds would come from the assets owned by the Combined Utility. Councilmember Plunkett returned to the dais. Edmonds City Council Approved Minutes March 1, 2011 Page 2 5. DISCUSSION AND POTENTIAL ACTION REGARDING A PROFESSIONAL SERVICES AGREEMENT WITH LIGHTHOUSE LAW GROUP AND A TRANSITION AGREEMENT WITH OGDEN MURPHY WALLACE. Mayor Cooper advised because the Transition Agreement with Ogden Murphy Wallace was not completed in time to be included in the Council packet, he recommended Council take action on that Agreement on March 15. The Council was sent an email earlier today suggesting the Professional Services Agreement with Lighthouse Law Group may be pulled, but it appears the unresolved issue has now been resolved. The Council was provided an amended contract tonight. City Attorney Scott Snyder referred to an email from Jeff Taraday dated March 1, 2011 at 12:10 p.m. He and Mr. Taraday have been working on an agreement that will allow the transition to occur at the earliest opportunity given Lighthouse Law Group's fixed fee nature. This will avoid paying Ogden Murphy Wallace for projects when the City has an opportunity for a fixed fee. This is an excellent time to transition because several matters have been resolved. The only significant change in the contract is on page 2, paragraph 3, once an adjusted flat fee has been agreed upon, the adjusted flat fee shall be retroactive to the date of expiration of the last flat fee. If Lighthouse's hourly billings during this interim period actually exceed the amount of the adjusted flat fee that is ultimately agreed upon, then Lighthouse shall refund the difference to the City. Mayor Cooper advised Council President Peterson and he had concerns about this section and that was the reason for the delay. He is now prepared to recommend the Council adopt the contract to begin the transition. Mr. Snyder, Lighthouse staff, City staff and he spent four hours today reviewing all the outstanding issues. He will provide the Council a recommendation next week regarding issues it may be appropriate to have Ogden Murphy Wallace complete such as going to court next week for which Ogden Murphy Wallace has already done the trial preparation. Mr. Snyder advised for the hearings on March 8 and 11, Ogden Murphy Wallace will honor their existing rate structure. Councilmember Wilson requested the Council delay approval of the Lighthouse Law Group contract. He had some concerns with the contract but did not prepare a written summary of his concerns due to the email stating this item would be pulled from the agenda. Mayor Cooper asked Mr. Snyder to comment on the ramifications of delaying approval. Mr. Snyder advised the City was at a good point to transition, there are a number of Public Works issues coming up, and a significant amount of work will be required in the next 2 -3 weeks. There is potentially $10,000- $15,000 in fees that could be duplicative depending on the transition. He commented it is also difficult for him to firmly state the City's position under the current circumstances. Councilmember Wilson explained his concerns are less to do with the expenditure of $5,000 - $15,000 in the next weeks and more the structural elements of the contract. For example, his primary reason for approving the Lighthouse Law Group was the savings that could be realized. Under the current contract, it can be terminated without cause with 60 days notice. In addition, the current contract allows Lighthouse Law Group to inform the City of a change in the contract rate by September 15. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETSO, TO APPROVE THE PROFESSIONAL SERVICES AGREEMENT WITH LIGHTHOUSE LAW GROUP. For Councilmember Plunkett, Mayor Cooper explained he asked the City Clerk to email the Council this afternoon suggesting the contract with Lighthouse Law Group may be pulled because this article of the contract had not yet been worked out. The matter was worked out after the email was sent. Edmonds City Council Approved Minutes March 1, 2011 Page 3 Councilmember Plunkett commented some Councilmembers were under the impression the agreement would be pulled including Councilmember Wilson who has further concerns with the contract. In light of Councilmember Wilson's concerns and the indication that the contract would be pulled, he could not support approval tonight. Councilmember Wilson pointed out this contract was significantly different than the current contract with Ogden Murphy Wallace. If there was a compelling interest to move forward tonight, he asked whether Councilmembers would be open to amendments. If there were four votes to move on, he would not waste the Council's time on amendments. Councilmember Bernheim preferred to conclude the matter because an orderly changeover is extremely important, planning for that transition is underway and the term of the agreement is annual. Because of the trust in the Lighthouse Law Group by virtue of the Council's selection as City Attorney and the period of time the contract will initially be effective, he supported approval of the contract tonight. Mayor Cooper asked whether it was typical for a City Attorney contract to allow an annual request for a fee increase. Mr. Snyder answered it was; the fixed fee nature of this contract is unusual. The intent was to have the request sync up with the City's budget cycle; the request will be made in time for the Mayor to include it in his budget. The appointment of the City Attorney by ordinance is for a four year term. He agreed the contract contains a 60 -day mutual termination provision; however, as is true for any professional services agreement for legal services, the City could terminate at any time due to the personal nature of the relationship. He summarized the 60 -day termination clause was fairly common. Councilmember Buckshnis advised she was ready to move on and approve the contract. Councilmember Fraley - Monillas commented she had not had an opportunity to review the contract in the form provided to the Council tonight and was not comfortable with moving forward. This is a gigantic step for the City and she was uncomfortable proceeding on good faith. She would not support the motion until she had an opportunity to read the contract. Mayor Cooper reminded the only difference between the contract the Council received in the packet are the two sentences in the paragraph on page 2 that Mr. Snyder reviewed. Councilmember Fraley - Monillas responded she would like an opportunity to read it. Councilmember Plunkett appreciated that some Councilmembers wanted an opportunity to read the changes made to the contract. He was surprised that some Councilmembers were not interested in hearing amendments. Council President Peterson commented he was open to hearing amendments. He was willing to move forward with the contract tonight, acknowledging he had somewhat of an advantage having seen the redline version. He has faith in both Ogden Murphy Wallace and the Lighthouse Law Group that they would forward a fair and honest contract. He understood some Councilmembers' hesitation to proceed, however, with the number of upcoming legal issues, the timing is favorable. Councilmember Wilson commented the Council did not typically conduct contract negotiations via committee and amendments; the negotiation process includes more people than just the Council. He highlighted five important flaws in the contract: 1. Page 3, Section 7, Either party may terminate this agreement without cause upon 60 days written notice to the other party. This is generally standard but the four year period is an important element. Termination upon 60 days without cause is also a concern to him. He preferred to have a basic standard for cause of action. Edmonds City Council Approved Minutes March 1, 2011 Page 4 2. Page 3, Section 8, professional liability insurance in the amount of $2,000,000. The existing contract with Ogden Murphy Wallace has $10,000,000 in professional liability insurance. He did not understand why the Council would want to put the City at additional professional liability and suggested this was an oversight by those reviewing the contract 3. Pages 2 -3, Section 6, it shall not be necessary for Lighthouse to send an invoice for the flat fee to be paid. Councilmember Wilson recommended requiring a clear description of the services provided. He acknowledged the next sentence states for informational purposes only, Lighthouse will send a monthly description. 4. Page 2, Section 3, he understood the proposed changes but did not support the idea that upon notification the City Attorney could begin charging hourly rates if the City was nonresponsive. He did not find it meritorious for the Council to simply receive a letter stating Lighthouse wished to increase their rate and wanted to protect the City from that during the four year period. 5. Page 2, Section 3, states the hourly rates are set forth in the attached proposal. He assumed that was Lighthouse Group's original proposal but it was not in the packet or attached to the contract. Mr. Wilson summarized these were five very good, structural reasons that there was work yet to be done on the contract. He cautioned the Council not to hastily charge forward simply to save $10,000. Councilmember Bernheim disagreed with Councilmember Wilson's last remarks, viewing them as unprofessional, uncivil and hyperbole in this context. They are hyperbole and a novelistic description that does not match reality and said only to exaggerate the true situation. However, in response to Councilmember Wilson's remarks, he agreed to withdraw the motion in an effort to have it unanimously approved. COUNCILMEMBER BERNHEIM WITHDREW HIS MOTION WITH THE AGREEMENT OF THE SECOND, ON THE CONDITION THAT THE COUNCIL PRESIDENT HAVE THE QUESTIONS RAISED BY COUNCILMEMBERS ADDRESSED WITHOUT ANY FURTHER DELAY. Councilmember Petso commented during discussion on Monday regarding whether the contract was ready for Council review, the contingency plan was to take the contract to the Finance Committee and bring it to the full Council the following week. If that was the Council's wish, it could be scheduled on the Finance Committee's March 8 agenda. Councilmember Bernheim preferred to schedule an emergency meeting to allow the contract to be approved within 72 hours. Councilmember Wilson suggested he could meet with Mr. Taraday and Mr. Snyder tonight to address his concerns which would not require a special meeting. Mayor Cooper responded if one Councilmember made amendments, the remainder of the Council would not have had an opportunity to review the amendments. He suggested the Council direct Council President Peterson or him to work with Mr. Taraday and Mr. Snyder to resolve the concerns and then either schedule an emergency meeting or meet prior to committee meetings on March 8. Councilmember Fraley- Monillas supported Councilmember Wilson's concerns, finding his suggestions very reasonable and responsible to the citizens. She summarized it was important for the Council to have a clear understanding of this four year contract. Council President Peterson advised Councilmember Wilson and he were both out of town next week. Councilmember Plunkett advised he was out of town for the next six days but could participate via telephone. Edmonds City Council Approved Minutes March 1, 2011 Page 5 Mr. Snyder advised 24 hours notice was required for a special meeting as well as sufficient time for the City Clerk to provide notice. Councilmember Wilson suggested he have an opportunity to speak with Mr. Taraday regarding his concerns. He asked why the professional liability insurance in the Lighthouse Law Group contract was $2,000,000 versus $10,000,000 in Ogden Murphy Wallace's contract. Mr. Snyder advised $2,000,000 was included in the contract because that was the amount in their proposal. He noted in his memo that it was considerably less than the current City Attorney contract. Mayor Cooper commented if changes were made to the contract to address Councilmember Wilson's concerns, he preferred to have the contract reviewed by legal counsel. Councilmembers discussed dates and times for a special meeting. Councilmember Plunkett asked whether the Council could counter back to the Lighthouse Law Group with a higher professional liability insurance. Mr. Snyder agreed the Council could renegotiate any term in the contract. Councilmember Plunkett asked whether $10,000,000 in professional liability insurance was standard. Mr. Snyder responded Ogden Murphy Wallace is a much larger firm with more potential liability and therefore has more liability insurance. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO SCHEDULE A SPECIAL MEETING ON THURSDAY, MARCH 3, 2011 AT CITY HALL TO APPROVE THE PROFESSIONAL SERVICES AGREEMENT WITH LIGHTHOUSE LAW GROUP. MOTION CARRIED UNANIMOUSLY. 6. AUDIENCE COMMENTS Doug Spee, Edmonds, referred to his intent to redevelop the post office site and code provisions governing redevelopment in the BD2 zone. He noted these provisions were new since he developed the mixed use building on Bell Street in 2002. First, Section 16.43.030.c.2 requires a 15 -foot stepback on the upper floor of any building over 25 feet. This requirement is very difficult to comply with architecturally and he suggested it be reconsidered. Second is the commercial depth required in the BD2 zone. Much of the BD2 zone faces residential zoning; in the case of the post office site, a 60 -foot section of the building on Bell Street faces residential and a commercial tenant in that space is not feasible. He purchased the post office property because it was a perfect palette to do something unique in Edmonds. He had three goals for the property, first to keep the post office on the site — he won the competition and the post office has committed to 20 years. The post office will be part of Phase 1 and the old post office building will be developed as Phase 2. His second goal is to recreate what he did at 3rd & Bell; offer reasonably priced, attractive rental housing. This can be done if some of the code issues can be reconsidered. One of the changes since 2002 is contextual consideration of the surroundings. His architect used Google SketchUp to illustrate how a proposed building will fit in the neighborhood. He was interested in green building incentives and could include the stepback on one side of the building. He has no partners or investors on this development and needs help from the Council, Planning Board and citizens. As a result of a suggestion from the community, he is considering a hotel for Phase 2. He summarized he has been waiting nine months to permit a development but is stuck in planning and needs some help. Robert Haverlock, Edmonds, congratulated the Council for establishing a Tree Board who will meet for the first time on March 14. He suggested a moratorium on the issuance of permits for tree cutting and pruning until the Tree Board reviews the current codes. He remarked on new FEMA and DOE regulations Edmonds City Council Approved Minutes March 1, 2011 Page 6 Ron Wambolt, Edmonds, explained the most optimum redevelopment of the post office site will require tweaking the City's code as Mr. Spee indicates. In early 2006 the downtown BC zone was replaced with five BD zones with a variety of development criteria. There has not been a single mixed use project in those zones since the zones were established. The primary reason is the poor economy but the code may be a contributing factor. The Council has spent time on various other matters such as controlling cats and chickens, purchasing property the City did not have money to buy, legitimatizing dog walking in additional parks, allowing solar panels on certain City property, etc. The Council should focus their energy on facilitating tangible economic development; redevelopment of the post office site offers that opportunity. If done right, a project on that site could provide stimulus for redevelopment of nearby properties. Fearing the required code changes would not be accomplished in an acceptable timeframe, he urged the Council to declare this economic development a high priority and request the Mayor and Council President create a plan to get it done. He suggested progress reports be scheduled on the Council agenda every two weeks. He urged the Council to keep this project in mind during their discussions with the Planning Board. He relayed Mr. Spee's comments to the Economic Development Commission that this development is an opportunity to provide housing that is more affordable. Al Rutledge, Edmonds, advised the first meeting regarding redistricting of Districts 1, 21 and 32 will be held in Olympia on March 29 in the General Administration Building. They intend to meet monthly as well as hold one meeting in the local area. Next Mr. Rutledge referred to a January 19 Court of Appeals hearing he attended. Roger Hertrich, Edmonds, explained he expresses his concerns to the Council in an effort to make the public aware. For example, a few weeks ago he expressed his concern regarding expanded business and commercial uses in residential zones, specifically customers arriving as late as 9:00 p.m., employees and signage. Last week he spoke regarding the proposed expansion of the Shell Valley emergency access. He summarized he was concerned with maintaining the integrity of residential neighborhoods. He expressed concern with Mayor Cooper interrupted his comments regarding the Shell Valley access road when his intent was to highlight the potential for businesses to use the emergency access. 7. COMBINED 2010 YEAR END REPORTS FROM THE CITY OF EDMONDS ECONOMIC DEVELOPMENT COMMISSION AND THE PLANNING BOARD. Frank Yamamoto, Chair, Economic Development Commission, identified the members of the Economic Development Commission (EDC): Paul Anderson, Kerry Ayers, Bruce Faires, Stacy Gardea, Don Hall, Darrol Haug, Betty Larman, Mary Monfort, Bea O'Rourke, Evan Pierce, David Schaefer, Rich Senderoff, Bruce Witenberg, Rebecca Wolfe, and Marianne Zagorski. He also thanked Council liaisons Councilmember Buckshnis and Council President Peterson. The EDC was created via Ordinance 3735 in June 2009 with members appointed by the Mayor and Councilmembers. The EDC was charged with the following: to seek new revenue streams, improve on existing revenue streams, move forward on opportunities, determine strategies for economic development, and review and consider strategies for improving commercial viability and tourism development. The EDC identified several issues that needed immediate attention: 1. Find a way to fund a full -time Economic Development Director position 2. Create and fund a Strategic Plan 3. Initiate Neighborhood Business Center Plans for Westgate and Five Corners 4. Evaluate Harbor Square plans for redevelopment 5. Initiate and fund a marketing plan for the fiber optic network 6. Appoint two Councilmembers to the EDC 7. Request response from the Council on the above Edmonds City Council Approved Minutes March 1, 2011 Page 7 The EDC presented the seven items to the Council and approval was provided in the form of Resolution 1124 in November 2010. In January 2011, four of the seven were considered the most important to implement and fund. With the help of City staff, specifically Stephen Clifton and Rob Chave, the land use portion was funded and the Council approved funding for the Strategic Plan. He reviewed the four items the EDC is working on: • Land Use — How to best utilize existing land because the City is essentially built out. Best options for improvement will be redesign of existing areas. The key is doing something that will not only enhance the community economically via a process that the citizens in the surrounding area support as well as developing a process that is developer friendly. The City's Development Services Department helped develop a program in conjunction with the University of Washington to develop conceptual plans for Five Corners and Westgate. • Strategic Planning — This is probably the most important piece to the success of the EDC. A Strategic Plan provides a roadmap to get from Point A to B via the most direct route. It spells out what citizens want in order of priority that will enhance lives and move the City forward in a positive and economically sound manner. A Strategic Plan is critical to gather information from citizens to plan for today and the future. A Strategic Plan is an ongoing plan that continues to evolve and adjust based on citizens' needs. • Technology — The focus was on making existing fiber optic opportunities more readily available to businesses that have a need for high speed fiber optics. The Citizen Advisory Technology Committee (CTAC) and EDC are at the doorstep of creating significant and immediate additional revenue for the City. • Tourism — The City, Chamber and the Downtown Edmonds Merchants Association (DEMA) have always promoted Edmonds through events and marketing. The potential is much greater. An EDC subcommittee is reviewing opportunities for creating new tourism attractions, one of which is sports tourism. Sports tourism such as tournaments provide an opportunity for the host community to capture revenue from people visiting the area for the tournament. Edmonds has many amenities that surrounding communities do not have including the waterfront and central downtown. The EDC subcommittee is in the process of identifying assets — athletic fields, parks, pools, courts, walking trails, bicycle trails, etc. — and estimating the cost to upgrade facilities to attract and host athletic events. The EDC continues to fulfill its charge to secure and seek new revenue streams and find ways to improve the revenue base either directly or indirectly. The EDC will continue to explore and implement initiatives related to the four categories as well as be proactive in seeking new ideas from the Council, Mayor, staff commissioners and citizens. The EDC will explore public and private partnership, grants and other funding sources. Redevelopment of Harbor Square and the post office site are important projects that needed attention. Development on Hwy. 99 is another area of importance. Working with other boards and commissions has been and continues to be a priority to maintain communication and to coordinate efforts. A Planning Board Member was added to the EDC to ensure that is accomplished. Key City staff continue to be a tremendous help to the Commission. The EDC was to sunset December 31, 2010 but the Council voted to extend the sunset date for an additional year, understanding that the process to review, consider and implement economic development related initiatives takes time and because the EDC is on the right track to accomplish its goals. Councilmember Buckshnis expressed her appreciation for the EDC and the work done by Stephen Clifton, Frances Chapin, Rob Chave and Cindi Cruz to assist the EDC. She suggested the presentation Mr. Spec made to the EDC be provided to the City Council so that the public could see his conceptual vision for the site. Edmonds City Council Approved Minutes March 1, 2011 Page 8 Phil Lovell, Chair, Planning Board, referred to the Planning Board's section of the EDC /Planning Board Report. He explained the Planning Board is a volunteer advisory group to the City Council regarding zoning and Comprehensive Plan issues and other tasks /studies the Council directs them to undertake. They also work closely with staff to identify areas that need attention. Their goal in concert with EDC is to study and support efforts to create long term sustainability of the City for citizens and visiting public from environmental, economic and livability standpoints while respecting the historical residential and other characteristics of Edmonds that attract citizens and visitors. He also referred to a report listing 2010 Planning Board accomplishments that was provided at the Council retreat. Chair Lovell highlighted items the Planning Board hopes to consider in the coming year: • Code Revisions — a 3- pronged approach: a. Simplify language so that both public and staff can both understand and implement provisions free of such hindrances as redundancy, conflicting and/or inconsistent language, incongruity of chapters /sections, and outdated provisions. b. Where appropriate introduce flexibility within certain sections to better enable Development Services staff and other enforcing departments to process work within the intent of identified provisions rather than being bogged down by either incomplete or lacking written language within the regulations. c. Where appropriate recommend code revisions be modified to relieve permitting and /or application fees /costs to the benefit of applicants with an eye towards encouraging economic growth from resultant undertakings. • Longer -term studies: a. Potential revisions to downtown business area in order to enable more adaptable project(s) development supportive of economic growth within the city. b. Participate with EDC in development of strategic plan being undertaken with help from outside consultant team towards a long -range workable program for the city. c. Undertake specific area- focused studies for the hospital district and highway 99, in concert with the Hwy. 99 Task Force, with the goal of enhancing and enabling appropriate economic and potential project development within those areas of the city. d. Content /context study of "form based zoning" principles and practices with the potential of applying same towards facilitating future development of certain areas /neighborhoods of the city, including, but not necessarily limited to Westgate, 5 Corners, and the downtown waterfront areas. • Tracking of potential master plan efforts being currently undertaken and /or contemplated such as the 4`'' Avenue Arts Corridor, 5 Corners neighborhood, Westgate neighborhood, Port of Edmonds Harbor Square redevelopment/revitalization and the Spee/USPS development - both phases, and the Downtown/Waterfront Activity Center. [ i7 1►( 11� 'r IIIY1NOWAVIIY:N1119N1304[i OWIQWRLNI.IIMMITI7I I7 Planning Board Members present: Phil Lovell (Chair), John Reed, Todd Cloutier, Valerie Stewart, Kristiana Johnson and Kevin Clarke. Mayor Cooper explained he will be interviewing four candidates for the Planning Board this week. He plans to present candidates to the Council to interview on March 15. Council President Peterson recalled the need for a joint meeting with the Planning Board was raised at the Council retreat. Chair Lovell and he met with Rob Chave and Stephen Clifton to review ideas and priorities from the Council's retreat and from the Planning Board's retreat and developed a suggested topic agenda for tonight's meeting. Chair Lovell's presentation also identified several specific issues such Edmonds City Council Approved Minutes March 1, 2011 Page 9 as development of the Spee /Post Office property as well as larger topics such as formed base zoning. He summarized that similar to the Council retreat, he did not envision a great deal of structure but a somewhat informal conversation. Planning Board Members introduced themselves and described their backgrounds. Planning Board Chair Phil Lovell commented the Planning Board was seeking input from the Council regarding any specifics they want the Planning Board to address in the short or long term. He invited the Council to ask questions regarding their 2010 Report that addressed 2010 accomplishments and issues they plan to address in 2011. He commented some items such as updates are referred to the Planning Board via staff and others are referred by the Council such as minor downtown BD zone updates. He commented it appears things are beginning to happen within the City, some activity, energy and good things are being undertaken. The Planning Board wants to ensure opportunities are not lost either by not studying issues in a timely manner or short circuiting communication. Chair Lovell relayed the Planning Board's interest in studying sections of the development code and zoning code and perhaps making adjustments to enhance flexibility and development opportunities downtown and throughout the City. It is their understanding that the studies the UW students are undertaking for Five Corners and Westgate may approach redevelopment utilizing a form based zoning approach. That approach and provisions in that code structure could work well in other areas. The Planning Board has been talking with staff regarding form based zoning for the past year and he suggested Planning Manager Rob Chave describe the basics of form based zoning. Mr. Chave described the different ways of defining a parcel via traditional zoning, design guidelines and form based codes. Traditional zoning takes a broad view of a property. He displayed a drawing of a parcel, explaining traditional zoning describes the general parameters such as height, setbacks, etc. to create a building envelope. Design guidelines place a design "skin" around the building envelope, beginning to describe how the property relates to the street. Formed based zoning looks at the potential development in an entirely different way, considering the forms of all types of building that could be developed on the block and how the various forms relate to one another, to the public streetscape and the surrounding area in general. Form based zoning essentially puts traditional zoning on its head. Traditional zoning or Euclidian zoning began with describing open space, setbacks, public health, etc. very broadly. Early zoning was related to addressing tenements, living and working conditions. In Edmonds, most development is redevelopment or infill where the focus is how things fit, the appearance of buildings, how buildings relate to their surroundings and the streetscape. Instead of beginning with uses and progressing through setbacks or stepbacks and ending up discussing design, form based zoning starts with the form of buildings, how they relate to the street, what is trying to be achieved, and then after that is determined, stepbacks, setbacks and design are discussed. He summarized in form based zoning, the process starts with form rather than ending with form. Mr. Chave explained formed based zoning is a concept of ` transect,' identifying a continuum and progression of land use and building types. Taansect comes from ecology/biology to measure the continuum of species within an area. Form based zoning draws a transect through the urban ecology to determine the transitions /parts of the community. He provided an example of a transect that includes natural areas, suburban, urban, etc. Formed based zoning considers relationships, how those areas relate to each other. In form based zoning, there are not uniform regulations in each area; for example a residential area in the urban portion of the transect does not look like the residential setting in the other portions of the transect. That is accomplished in various ways such as adopting an illustrative plan, describing visually what the Edmonds City Council Approved Minutes March 1, 2011 Page 10 City wants to achieve. Form based code often goes block by block or neighborhood by neighborhood. That is then translated into a regulating plan that is similar to a zoning map. Instead of broad zoning categories, each property or each portion of an area is coded to allow a series of zoning classifications. This is followed by identifying standards for various building types. Those standards are typically very visual. Formed based codes use a great deal of graphics, tables, etc. to simplify and make it easier to understand how the code works. In each area of the transect, several building types may be allowed. For example, areas in the 4"' Avenue Corridor may be coded to allow different building types depending on the surroundings. Formed based approach easily allows coding of transitions versus the current code that has a single BD zone for the 4"' Avenue Corridor. Form based zoning allows a more fine grained effort to describe and codify what the City wants to achieve. Mr. Chave felt this made perfect sense for Edmonds as many of the discussions regarding zoning are very fine grained and about how a particular neighborhood or block relates to the area. Form based zoning allows identification of open spaces, relationship to open spaces, etc. Key elements of form based zoning include: • Regulating plan is very map oriented showing where different form standards apply • Building forms and standards • Public space specifications and relationships • Administration and process very clear • Definitions mandatory • Use visuals and tables to organize and simplify requirements • May also employ architectural, landscape, signage and other standards Mr. Chave summarized the UW studies of Five Corners and Westgate hope to include form based code concepts. The EDC and Planning Board have discussed trying to use the Five Corners and Westgate studies as a template for those areas as well as other areas in the City. There are key places that need a form based approach such as Highway 99 and the Medical Activity Center, neighborhood centers, multi family zones and portions of downtown. The form based approach has more potential for success than the existing zoning. He noted the existing code does contain some elements of form based zoning such as the different BD zones. Councilmember Buckshnis expressed interest in fast tracking the post office development possibly via a development agreement or a form based approach. The project is financially feasible and would bring new architecture to the City. The slope on the parcel would limit the visual impacts of increased height. Although there is often a gut reaction to increased heights, the schematics illustrate a 4 -foot height increase would not impact views. Additional height would also allow Mr. Spee to lower rents by $200 /month. She anticipated a formed based code approach may take too long and time is of the essence to the Spec development. Chair Lovell explained the studies being conducted by UW students of Five Corners and Westgate will result in a proposal that will be presented to the Planning Board and the Council with ultimately a rewrite to the development code. Once that is accomplished, consideration would be given to rezoning specific areas such as Highway 99 and the downtown area and eventually the Spec development. The other approach would be to propose certain revisions to the existing development code that may address the issues Mr. Spee highlighted. Mr. Chave explained last fall staff and the Planning Board identified minor issues in the BD zone. Since then Mr. Spec has made presentations to the EDC and Planning Board highlighting issues relative to a specific project in the BD2 zone. Edmonds City Council Approved Minutes March 1, 2011 Page 11 Mr. Chave encouraged the Planning Board and the Council to discuss the code in general and potential issues in the BD zones but cautioned the Council against discussing specific projects. He pointed out Mr. Spee's project could come to the Council on appeal of a design decision or a change in zoning. Councilmember Buckshnis commented it was her understanding that via a development agreement, the City would work with a developer on tradeoffs. Mr. Chave answered via a development agreement the City can provide incentives; the development agreement can have a different approval process. The Planning Board is considering allowing development agreements in the BD zones in exchange for green development, design flexibility, etc. He recommended a code amendment that would provide standards for a development agreement. Councilmember Petso explained one of the reasons for suggesting a joint meeting with the Planning Board is the Planning Board forwarding a recommendation to the Council that the Council does not pass. A recent example is the home occupation ordinance. She assured the Council was not ignoring the Planning Board's work but citizens often do not provide input until an item reaches the Council. In reading the Planning Board minutes, she has found comments questioning who is driving a particular agenda item or whether the Planning Board is proceeding in the direction the Council wants. For example, the subdivision rewrite does not appear to be simply a rewrite but a massive rezone of several residential areas of the City. She was not certain that a Council majority would support a massive rezone of residential areas. She cited an example in Mr. Clarke's neighborhood which is primarily RS8 and a proposal in 2007 for a development with average lot sizes of 6,300 square feet. She explained the PRD ordinance provides for useable open space, perimeter buffers, etc.; however, the subdivision rewrite appears to allow that type of development outright. Councilmember Petso also encouraged the Planning Board to email the Council with any questions about who is driving certain items. She suggested the Planning Board refer to the Council's retreat minutes for items the Council is interested in pursuing. For example, one of her priorities is reviewing commercial business space in the downtown business core. She encouraged the Planning Board to talk with Councilmembers and the public. Board Member Reed explained the Planning Board goes to a great deal of effort to review topics before providing a recommendation to the Council, often because the topics are complex. He viewed changes the Council made to the Planning Board's recommendations as part of the process. Input the Council provides to the Planning Board to take into account during their review will avoid their sending something to the Council that the Council does not like. He cited the need for communication between the City Council and the Planning Board and encouraged Councilmembers to comment on Planning Board agenda items. He acknowledged there is often no public participation at their meetings, thus the Planning Board does not have the benefit of the input the Council receives at their meetings. The Planning Board needs to improve participation at that level. Communication between the Planning Board and City Council is the key. Councilmember Wilson commented on the importance of leveraging the fiber optics asset. He suggested requiring in the zoning code that redevelopment near the fiber optic corridor connect. Next, he suggested the Planning Board consider requiring new businesses in the first story in BDl or an area around 5`" & Main be retail rather than commercial. He anticipated requiring retail on the first floor would increase foot traffic and assist with drawing visitors from 5`h toward the waterfront or toward Arista and C'est la Vie. He also suggested the Planning Board consider a rezone of the Antique Mall/Skippers area to spur development in that area. Chair Lovell responded the Planning Board has discussed a Master Plan for the Antique Mall/Skippers area. Use of a development agreement would require a change to the code. In his opinion the multimodal Edmonds City Council Approved Minutes March 1, 2011 Page 12 center was unlikely to occur and he was interested in the City planning for redevelopment of that area. There may be some impetus for redevelopment of that area when Harbor Square redevelops. The Port hopes to present their revitalization/master plan for Harbor Square to the Planning Board and City Council by the end of this year. Councilmember Wilson commented there was unlikely to be significant development at Harbor Square for years or even a decade. Likewise it was unlikely the property owners of the Antique Mall or Skippers or properties to the west would be interested in integrating the ferry terminal, train station, transit center or use of the holding lanes. He pointed out Washington State Ferries is willing to consider redevelopment as evidenced by their offer to exchange property for construction of an overpass. With regard to rezoning the Antique Mall property, Councilmember Bernheim did not believe underground parking was feasible in that area and above ground parking was not socially feasible because it would leave little space for development that does not adversely affect the seashore character of the community. The frustration derives from the inappropriateness of the area for intensive development. With regard to downtown zoning, he commented it was formed based to an extent; the unstated form is the two story concept. The incongruities, outdated and incomplete language, lack of language and surplus language in the BD chapters was an effort to put a two story limit in downtown Edmonds. For example there is a 30 foot height limit in the BD zone but buildings are effectively limited to 2 stories due to the mandatory 15 -foot first floor. He summarized the community needed to agree on a vision before a form based code could be written. Councilmember Bernheim asked if the Planning Board objected to televising Planning Board meetings. There were no objections voiced. Mayor Cooper commented it was more a staffing and financial issue. Chair Lovell agreed that to do form based code properly, it should not occur until the studies and the Strategic Plan are complete, a process that will take a long time. He recognized there were problems with that process relative to Mr. Spee's development. Councilmember Bernheim agreed with Councilmember Buckshnis that he was in favor of rapid Council action on a development proposal. Board Member Clarke recalled a year ago Councilmember Bernheim presented the Planning Board a visual program of various architectural alternatives with options and flexibility to make buildings look attractive. Establishing a vision is the key. He explained real estate exists for humans to conduct activities in. When developers look at creating activity centers rather than boxes and profit, it creates synergies that help the development extend its economic life. For example in the 1980s he worked on the redevelopment of the South Lake Union waterfront which at that time was an industrial working waterfront. The redevelopment scheme was to design projects that could be inner connected with City amenities (parking, boardwalk and open space). Building height was not an issue, all the buildings were two stories, the focus was the uses such as yacht club, view restaurants, etc. Another example is the first commercial area in Mill Creek at 164`h & Bothell Everett Highway, a traditional neighborhood shopping center anchored by a grocery store with a pharmacy and outbuildings such as a restaurant or bank. By contrast, the recently developed Mill Creek Town Center is a very different land use with attractive 2 -3 story buildings with parking areas and walkways. Board Member Clarke cited Northgate as an example of an early shopping center and the evolution of regional malls to include clusters of activity and parking structures such as at Alderwood Mall. That was his vision for Edmonds, clusters of activity. He was also involved with the redevelopment of Carillon Point that includes mid -rise office buildings, a hotel, restaurants, marina, luxury condominiums and retail space. The scale of that development was very different from big block masses in downtown Kirkland where there has been less success. He commented mixed use commercial buildings where zoning forced Edmonds City Council Approved Minutes March 1, 2011 Page 13 commercial space on the first floor are often vacant in this economy. He agreed with need for a vision so that all the component parts interact and capitalize on the strategic strength of the amenity. He suggested creating a Leavenworth or Carmel -by -the sea in Edmonds and allowing zoning to be flexible to permit the market to interact to create special projects. He commented on the potential for a hotel to be an economically viable project. Board Member Clarke commented on his first employer, a furniture store where Chanterelle is now located that struggled in the 1970s. The building owner eventually decided to redevelop the building, making the second floor office space, a new entrance on Main and a restaurant on the first floor. The building has been very successful without changing the building envelope and is a good example of redevelopment of a 100 -year old building. He encouraged the Council to share their vision with the Planning Board. He commented on the importance of synergistic development downtown Councilmember Fraley- Monillas encouraged the Planning Board to consider that Edmonds is not just downtown, many citizens live in neighborhoods outside downtown. She encouraged the Planning Board to continue looking at the Antique Mall property, not like Carmel, but more a Whistler type environment with hotels, outdoor markets, art center, restaurants, etc. She pointed out the Council is as diverse as the citizens of Edmonds. The Planning Board is asking the right questions and moving in the right direction; she recognized the difficulty they experience when there are so many different opinions. Board Member Val Stewart agreed Edmonds was not just the downtown and that there needs to be outreach to all citizens to determine what they want. She echoed Board Member Clarke's comments about vision. She supported reaching out to citizens in a way to engage them. She referred to the City of Shoreline's visioning process with an outside consultant and was hopeful Edmonds' Strategic Plan included a visioning process. It is important to develop a plan that citizens can visualize block by block or activity center by activity center. Mayor Cooper advised the Planning Board will be receiving a letter from the Mayor's Climate Protection Committee asking them to address implementation of certain elements of the Climate Action Plan. Councilmember Buckshnis asked if the Planning Board was involved with the proposal for solar panels on the Frances Anderson Center. Chair Lovell stated the Planning Board was not contacted regarding that project. Councilmember Buckshnis commented on the community feeling of the former Old Mill Town that needs to be recreated. She envisions a great deal of opportunity near the hospital and on Highway 99. She has suggested to the hospital that they increase the height, noting the opportunity that resources in that area provide. Board Member Johnson echoed Councilmember Buckshnis' comment, pointing out the hospital is the number one employer in Edmonds and Swedish has pledged to invest over $100 million. The Highway 99 corridor has tremendous redevelopment potential; Shoreline and Lynnwood have done long range plans for enhancing non - motorized facilities, landscaping and visual aspects. She suggested studying Shoreline and Lynnwood's plans to determine how to beautify Highway 99 as well as encourage economic development. Board Member Clarke referred to significant development that has occurred on the Overlake and Evergreen Hospitals campuses as a result of their vision for synergistic uses within the medical service community. He recognized the new tower on the Overlake campus is significantly taller than the rest of the skyline but fits within the campus concept. Northwest Hospital has also encouraged development on their hospital campus that has been very successful. Swedish - Edmonds competes with Evergreen, Edmonds City Council Approved Minutes March 1, 2011 Page 14 Northwest and the new facility in Mill Creek. Medical development can be attracted to Edmonds by flexible land use along the west side of the Hwy. 99 corridor, allowing it to become the anchor for medical services in southwest Snohomish County. The land is available by redeveloping several properties; the City needs to be aggressive in its land use policies. Board Member Reed relayed the Planning Board's frustration when reviewing the capital plan last year because the same projects are on the plan every year and never get done. He pointed out redevelopment creates additional infrastructure and many of the current infrastructure projects are not being addressed due to finances. Board Member Cloutier commented on the importance of communication, strategy and visioning. Three areas where the Planning Board is seeking the Council's input are: 1) redrawing the boundaries of the Highway 99 Medical Activity Center, 2) the Five Corners study and 3) the Westgate study. The Five Corners and Westgate studies are experiments with form based code before pursuing it for the remainder of the City. He encouraged the Council to provide input on those studies as well as encouraging input from a wider demographic. Councilmember Petso commented a City could not really experiment with land use because the buildings that result last 50 -100 years. Although she may have voted against the UW study of Five Corners and Westgate, she appreciated the studies. She cautioned that all areas of the City could not be treated the same. For example while it may be nice to have a pedestrian area at Five Corners, Public Works is planning a roundabout in that area which she did not view as a pedestrian friendly amenity. The same is true at Westgate. She completed the survey and stated she did not want parking eliminated because under certain weather conditions, people would not walk to the businesses. The survey asked if she wanted buildings at the street front and more pedestrian activity on the street. She questioned if that was appropriate on a 40 mph State route to the ferry. She urged the Planning Board to distinguish what was desirable for different areas of the City. Councilmember Fraley- Monillas urged the Planning Board to proceed cautiously when redrawing the boundaries of the Medical Activity Area. The residents made it clear to the Council they do not want 10- story medical buildings next to their backyards. The residents are supportive of medical building projects in the Hwy. 99 corridor but not adjacent to the residential areas. Board Member Clark commented Children's Hospital provides a good model via their work with the Laurelhurst neighborhood. The Seattle City Council worked with the hospital and the community to redesign the original project to a much smaller project. He commented on the importance of involving residents in visioning. Council President Peterson summarized the Council's shorter term priorities include figuring out how to do development agreements and the code rewrite including incentives. Longer term priorities are form based zoning in Westgate and Five Corners. To Councilmember Petso's caution about a one size fits all approach, he explained form based zoning is exactly that, a concept that takes the individual neighborhood into account. He explained the roundabout at Five Corners is intended to improve pedestrian safety. As part of form based zoning, he recommended consideration also be given to the Medical Activity Area. He agreed with the importance of visioning and the Strategic Plan which will include a great deal of community involvement. Communication is of primary importance and he anticipated scheduling another joint meeting with the Planning Board mid -year as well as updates from the Planning Board to the Council and from the Council to the Planning Board. He was impressed with the amount of time and effort Planning Board Members put into issues. Edmonds City Council Approved Minutes March 1, 2011 Page 15 Councilmember Fraley - Monillas encouraged Planning Board Members to call individual Councilmembers with their questions, suggestions and concerns. Pointing out the Planning Board also has responsibility for parks, Board Member Clarke invited the Council's input on anything they hear from the community related to parks. 9. DISCUSSION AND POTENTIAL ACTION REGARDING PENDING LEGISLATION OF INTEREST TO THE CITY OF EDMONDS. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON, TO EXTEND THE MEETING FOR 20 MINUTES. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER BERNHEIM, TO APPROVE RESOLUTION 1245 EXPRESSING THE COUNCIL'S SUPPORT FOR SBH 1489 / SSB 5194 BANNING THE SALE OF FERTILIZERS CONTAINING PHOSPHORUS. Councilmember Wilson advised the bill included in the Council packet bans the sale of all fertilizers that contain phosphorus in the State of Washington. The bill has passed the House and is cosponsored by all the Edmonds area representatives and is now before the Senate where Senator Chase is a sponsor but Senators McAuliffe and Shin have yet to take a position. Councilmember Bernheim asked whether the sale of fertilizers containing phosphorus could be banned at the local level if the bill did not pass statewide. Councilmember Wilson answered it could. Councilmember Plunkett inquired about the vote in the House. Councilmember Wilson relayed the vote was 59 yes and 39 no. 1 \l Loll V[13610_1 7 Ili 101 VISE 1100[olIN 1I5faIC�51 i�A11 ►`I:�511WI[�L�71Y1►[l�i►[�a COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON, TO APPROVE RESOLUTION 1246 EXPRESSING THE COUNCIL'S SUPPORT FOR SBH 1721 REGARDING PREVENTION OF STORM WATER POLLUTION FROM COAL TAR SEALANTS. Councilmember Wilson explained asphalt sealants based on coal tar cause cancer and as a result runoff into stormwater ultimately poisons waterways, the ecology, plant life and the food chain. Coal tar sealants cause a great deal of damage to the ecosystem, the food chain and humanity. This is the first bill in the nation to ban coal tar sealants. The many other ways to seal asphalt were highlighted in the Washington Post. The Washington Post and local reporting cited Lake Ballinger as one of the most polluted and most cited examples of a waterway with high levels of coal tar sealants. The bill passed the House by a vote of 67 yes and 30 no. Councilmember Petso advised she would not support the motion because her research found the science compelling for the phosphorus ban but not for this ban. Councilmember Fraley - Monillas asked whether Edmonds could ban the use of coal tar sealants if the bill did not pass. Councilmember Wilson answered the City could prohibit the sale of cold tar sealants within the City and prohibit the use in City operations or by contractors on City streets but could not prohibit use by citizens. Councilmember Fraley - Monillas advised she would support the motion. Councilmember Buckshnis asked if the City used coal tar sealants and what the cost would be for the City to use another product. Mayor Cooper answered Public Works Director Phil Williams has some concerns Edmonds City Council Approved Minutes March 1, 2011 Page 16 with the bill because coal tar sealant is the primary product the City uses to seal cracks. The product used to reseal driveways is the primary cause of stormwater pollution. He suggested having a discussion with Mr. Williams regarding viable alternatives and the costs associated with alternatives. Although Mr. Williams understands and supports the science, his concern was there were no exemptions for cities to use the sealant. Councilmember Buckshnis suggested tabling this resolution until further information was available. Councilmember Wilson clarified the resolution is to support legislation that is now in the Senate. The bill prohibits the use of coal tar sealants after a certain date because it is a known carcinogen. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO TABLE THIS ITEM. MOTION FAILED (3 -4), COUNCILMEMBERS PLUNKETT, BUCKSHNIS AND PETSO VOTING YES. Council President Peterson spoke in favor of the motion, pointing out although there are costs associated with implementing bans, this bill is a preventative action that can mitigate future costs associated with clean water mandates. He viewed this legislation as a proactive solution to eliminate a known carcinogen which can be cost neutral by replacing bad practices. MAIN MOTION CARRIED (5 -2), COUNCILMEMBERS PETSO AND PLUNKETT VOTING NO. 10. MAYOR'S COMMENTS Mayor Cooper advised his State of the City Message will be delivered twice on Friday, March 4 — 9:00 a.m. at the Senior Center and 5:00 p.m, in Council Chambers. The public is invited to both events. The presentation in the Council Chambers will be taped and broadcast on Channel 21. The text of his speech will be available on the City's website at the conclusion of Friday afternoon's presentation. Mayor Cooper referred to remarks Councilmember Buckshnis read into the record by three members of the Citizen Levy Committee as part of the Citizen Levy Committee Report. He appreciated their remarks, noting the importance of dissenting opinions. However there were some inaccuracies and misunderstandings made in their remarks. He offered the following clarification /corrections: • To the comment that negotiations should take place before the budget is established, Mayor Cooper explained that is not always possible because the City is bound by State collective bargaining laws and must begin bargaining within a certain number of days prior to the contract expiration date. It is not uncommon for contract negotiations to go beyond the first of the year which is why potential settlements are included in the budget. • To the comment about possible conflict of interest by the City Attorney and Human Resources Director and the need for a third party, Mayor Cooper assured there is no conflict of interest because the City Attorney and Human Resources Director are bound by the parameters established by the City Council. • To the comment regarding a 100% premium paid by the City for life insurance, Mayor Cooper explained there are two life insurance policies offered to City employees. One is a small term life insurance policy that is part of the total compensation agreement paid by the employer via collective bargaining agreements. The other, which was referred to in the citizen's remarks, is part of the Municipal Employee Benefit Trust program and is paid entirely by the employee. The City Council also receives benefit of both those life insurance policies should they choose to participate. • To the statement about Aflac disability premiums fully paid by the City as compared to State requirements such as State industrial insurance, Mayor Cooper explained Aflac is a totally Edmonds City Council Approved Minutes March 1, 2011 Page 17 voluntary benefit paid entirely by the employee at no cost to the employer. The City also participates in the State industrial insurance as required by law and Aflac is not a substitute for that program. To the comment that the City pays 100% of Police Department medical insurance, Mayor Cooper explained the City pays 100% of the employee and 90% of dependents. This is the industry standard in law enforcement and is supported by comparable department statistics that are used in collective bargaining. To the comment regarding employees bearing the cost of uniforms, Mayor Cooper explained Washington State law requires an employer to pay for uniforms if the uniform cannot be customarily or ordinarily worn outside of work such as a police uniform. The City is required to pay for those uniforms. Mayor Cooper appreciated the citizens' comments, pointing out the importance of ensuring there was no misunderstanding of the information. 11. COUNCIL COMMENTS Councilmember Fraley- Monillas thanked everyone for allowing her to participate in last week's Council meeting via phone from home as she was ill. Councilmember Wilson reported the Public Safety & Human Resources Committee met tonight on two issues, one of which was medical benefits. The Council has tasked the Committee with reviewing medical benefits to determine whether there are ways to provide an equal level of benefits at the same cost. The Committee thinks it is possible. The Affordable Care Act/Health Reform bill requires insurance companies to limit their administration, profit, marketing, and taxes to 20% of their premium dollar. Insurance companies are uncomfortable with that because it is typically 25 -30 %. The Committee thinks it is possible to do better than 30% overhead and the standard in the marketplace for a third party administrator for self- insurance is 5 -7 %. With regard to why self insurance was not recommended by the previous Mayor, Councilmember Wilson explained two differences this year are, 1) the $1 million committed toward self insurance, and 2) the standard by which self - insurance was to be judged previously required that it cost no more in the first year than the existing plan. He acknowledged there will be a hit in the first year but significant savings can be realized in year two and beyond. As long as the Council continues to take a long view and is interested in out year savings at some year one costs and as long as the Council is willing to set aside the Fire District 1 monies into a reserve for employee medical benefits, a self- insurance plan can move forward. The Committee plans to develop principles that would be presented to the Council in April. Councilmember Bernheim expressed interest in the City Attorney contract being a unanimous vote. He urged Councilmember to consult with staff regarding their questions. To Councilmember Wilson, Councilmember Plunkett commented the Council has not committed the $1 million to self insurance; it has been discussed. He asked that the Public Safety & Human Services Committee present projected savings via self insurance. Councilmember Wilson agreed the committee could provide unfounded, speculative savings. The next step is not the final step but a step to determine whether the Council wants to proceed. Councilmember Plunkett commented before he could commit the $1 million, he would need to see the savings that could be realized. Councilmember Buckshnis assured the Public Safety & Human Services Committee will provide answers to the questions Councilmember Plunkett raised. She thanked Citizen Levy Committee member Evelyn Wellington for the work she has done for the Committee and Mayor Cooper for clarifying her comments. Edmonds City Council Approved Minutes March 1, 2011 Page 18 Councilmember Buckshnis reported on the opening of American Brewing Company next door to Gallaghers' Where U Brew. Councilmember Petso relayed she has been asked to bring several items to the Finance Committee and Council President Peterson suggested she run the items by the Council first. The following items will be scheduled on Finance Committee agenda in the next three months unless Councilmembers advise they do not want their time or staff time wasted on these items: • Emergency finance reserve — a suggestion has been made to put the money in a separate fund for clarity and that the purpose be revised to be more liberal such as eliminating the Act of God language. • Parks fund — the fund is supposed to have interest dedicated to the pool or flower program. The fund currently shows no interest. A suggestion was made to tighten the language and practices regarding that fund. • Park Impact Fee — She invited Councilmembers to advise her if they were vehemently opposed to a Park Impact Fee. • Transport Fee revenue — if a report is not provided to the Council regarding the revenue stream, it will be scheduled on a Finance Committee agenda. • Add a claim or litigation report to the quarterly financial reports. Mayor Cooper advised the transport fee collection was explained to the Public Safety Committee earlier this year. He has asked Fire District 1 explain at the March 22 joint meeting why projections are higher than funds received. Council President Peterson reported in two weeks Mayor Cooper and he will be in Washington DC for the National League of Cities where they will meet with other elected officials and have face -to -face meetings with Washington elected officials. Councilmember Plunkett asked how the trip was paid for. Council President Peterson answered he was using Alaska Airline miles and he paid for the hotel and registration fee himself. Mayor Cooper advised his trip did not cost the City anything other than his registration which was included in the budget. 12. ADJOURN With no further business, the Council meeting was adjourned at 10:25 p.m. Edmonds City Council Approved Minutes March 1, 2011 Page 19