01/25/2011 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
January 25, 2011
At 6:30 p.m., Mayor Cooper announced that the City Council would meet in executive session regarding
evaluation of a complaint against a public officer and to review with legal counsel potential litigation
pursuant to the provisions of RCW 42.30.110 (f) and (i). He stated that the executive session was
scheduled to last approximately 30 minutes and would be held in the Jury Meeting Room, located in the
Public Safety Complex. No action was anticipated to occur as a result of meeting in executive session.
Elected officials present at the executive session were: Mayor Cooper, and Councilmembers Bernheim,
Plunkett, Fraley - Monillas, Buckshnis, Peterson, Petso and Wilson. Others present were Human Resources
Director Debi Humann, Michael Bolasina, Attorney with Stafford Frey Cooper, and City Clerk Sandy
Chase. At 7:05 p.m. Ms. Chase announced to the public present in the Council Chambers that an
additional 10 minutes would be required in executive session. The executive session concluded at 7:11
p.m.
The regular City Council meeting was called to order at 7:15 p.m. by Mayor Cooper in the Council
Chambers, 250 5`h Avenue North, Edmonds. The meeting was opened with the flag salute.
ELECTED OFFICIALS PRESENT
Mike Cooper, Mayor
Strom Peterson, Council President
D. J. Wilson, Councilmember
Michael Plunkett, Councilmember (arrived 7:17 p.m.)
Lora Petso, Councilmember
Steve Bernheim, Councilmember
Adrienne Fraley- Monillas, Councilmember
(arrived 7:17 p.m.)
Diane Buckshnis, Councilmember
ALSO PRESENT
Peter Gibson, Student Representative
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STAFF PRESENT
Al Compaan, Police Chief
Jim Lawless, Assistant Police Chief
Phil Williams, Public Works Director
Lorenzo Hines, Finance Director
Carrie Hite, Parks & Recreation Director
Frances Chapin, Cultural Services Manager
Rob English, City Engineer
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED
UNANIMOUSLY. (Councilmembers Plunkett and Fraley - Monillas were not present for the vote.)
2. CONSENT AGENDA ITEMS
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY.
(Councilmembers Plunkett and Fraley- Monillas were not present for the vote.) The agenda items
approved are as follows:
A. ROLL CALL
B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF JANUARY 18, 2011.
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January 25, 2011
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C. APPROVAL OF CLAIM CHECKS #123439 THROUGH #123520 DATED JANUARY 20,
2011 FOR $2,233,423.96. APPROVAL OF PAYROLL DIRECT DEPOSIT AND CHECKS
#50169 THROUGH #50196 FOR THE PERIOD JANUARY 1, 2011 THROUGH JANUARY
15, 2011 . FOR $637,1.66.1.1.
D. COMMUNITY SERVICES AND ECONOMIC DEVELOPMENT DEPARTMENT
QUARTERLY REPORT — JANUARY, 2011.
E. REPORT ON FINAL CONSTRUCTION COST FOR THE 2009 ASPHALT OVERLAY
PROJECT AND COUNCIL ACCEPTANCE OF PROJECT.
F. AUTHORIZATION TO AWARD EDMONDS ARTS COMMISSION RECOMMENDED
TOURISM PROMOTION CONTRACTS WITH LOCAL CULTURAL
ORGANIZATIONS.
3. SWEARING -IN CEREMONY FOR POLICE SERGEANT KENNETH D. PLOEGER.
Police Chief Al Compaan explained one of the highest honors a Chief of Police has is celebrating
achievement by department members. An oath is an important public recognition of personal achievement
and a personal pledge to the highest level of legal, ethical and professional standards that are critical to
the law enforcement mission.
Chief Compaan described Sergeant Ploeger's employment with the City. He was hired as an entry level
Police Officer on February 1, 1991 and promoted to First Class Police Officer on February 1, 1992. In his
20 years with the Edmonds Police Department, he has served in several specialty assignments and
performed many of the collateral duties including Patrol Officer, Dive Team Member, Property Crimes
Detective, Narcotics Detective, Street Crimes Officer, SWAT Team Member, and Department Firearms
Instructor. He has also received four letters of commendation awarded to department employees who
perform particularly noteworthy acts of service based on determined and intelligent performance. He was
promoted to the rank of Corporal in January 2002 and has worked as Patrol Corporal and Executive
Corporal since then.
Sergeant Ploeger will be supervising a squad of Patrol Offices on day shift. Chief Compaan recognized
those present today including Sergeant Ploeger's wife Rochelle; children Riley and Haley; mother Penny;
retired Edmonds Police Sergeant Debbie Smith; Mike Smith, Fire District l; retired Edmonds Police
Chief Robin Hickok; retired Edmonds Police Sergeant Ken Jones and many others.
Chief Compaan swore in Police Sergeant Ken Ploeger. As is tradition in law enforcement upon
graduation from basic academy and the time of promotion, Sergeant Ploeger's wife pinned his Sergeant's
badge.
Sergeant Ploeger commented he has been incredibly honored to work for the City for the past nearly
twenty years. He recognized audience members who joined in celebrating his promotion including retired
Sergeant Jones, retired Chief Hickok, retired Sergeant Debbie Smith and his friend Matt Salvalina, King
County Sheriff's Office.
Councilmembers congratulated Sergeant Ploeger. Chief Compaan presented Sergeant Ploeger a
Certificate of Promotion that will be on display in the Sergeant's Office.
4. PRESENTATION OF CHECK BY THE EDMONDS POLICE FOUNDATION IN HONOR OF
CHIEF DAVID N. STERN FOR HAINES WHARF PARK
Parks & Recreation Director Carrie Hite explained the Edmonds Police Foundation will provide a check
to the City in support of the development of the overlook to be dedicated in memory of Chief David N.
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January 25, 2011
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Stern, Edmonds Police Chief from 2001 until his death April 25, 2007. He spent 39 years in law
enforcement and was an active member of the Edmonds community, serving as the President of the
Edmonds Chamber of Commerce and Washington Association of Sheriff's and Police Chiefs as well as
others.
Chris Fleck, Edmonds Police Foundation, recognized members of the Police Foundation who were
present. On behalf of the Police Foundation, he presented a check in the amount of $12,100 to the Parks
& Recreation Department. The funds were donated by Chief Stern's friends and associates and the
Edmonds community to contribute to the overlook at the newly constructed Haines Wharf Park in honor
of the late Police Chief, who was also his golfing buddy, David N. Stern.
Mr. Fleck displayed several photographs of Haines Wharf Park.
5. PUBLIC SAFETY RESERVE FUND BUDGET AMENDMENT TO PAY OFF 1998 LTGO BONDS.
(PUBLIC COMMENT WILL BE RECEIVED)
Parks & Recreation Director Carrie Hite explained Real Estate Excise Tax comes to the City in two
forms, the first one - quarter percent, REST 1, is deposited into Fund 126, Special Capital Improvement
Fund. The second one - quarter percent, REET 2, is deposited into Fund 125, Park Improvement Fund.
She provided the State defined use of REET 1. funds according to RCW 82.46.010:
"public works projects of a local government for planning, acquisition, construction,
reconstruction, repair, replacement, rehabilitation, or improvement of roads, highways, sidewalks,
street and road lighting systems, traffic signals, bridges, domestic water systems, storm and
sanitary sewer systems, parks, recreational facilities, law enforcement facilities, fire protection
facilities, trails, libraries, administrative and judicial facilities...."
She provided the State defined use of REET 2 funds according to RCW 82.46.035:
"public works projects of a local government for planning, acquisition, construction,
reconstruction, repair, replacement, rehabilitation, or improvement of roads, highways, sidewalks,
street and road lighting systems, traffic signals, bridges, domestic water systems, storm and
sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or
improvement of parks.
She summarized the primary difference between REET 1. and 2 in the State definition is REET 1. can be
used for acquisition of parks and development of parks and recreational facilities. The State defined use
of REET 2, although fairly liberal, does not include acquisition or recreational facilities.
The City's current policy narrows the use of REET 1 to Specialized Capital Projects and Debt Service.
With regard to REET 2, past Councils allocated the first $750,000 to the Park Improvement Fund with the
excess allocated to Street Construction Improvement Fund.
Ms. Hite provided the history of decisions made by previous Councils to restrict use of the REET funds:
• October 2000 — Motion approved that Funds 125 (REET 2) and Fund 125 (REET 1) are not to be
used for the Anderson Center Capital Improvement Project and that those funds continue to be
used for parks and recreation acquisition and development purposes.
• October 2002 — Motion approved to dedicate First quarter percent REET to the acquisition and
purchase of park and cultural capital projects through City Council directive.
• March 2004 — In Council Financial Stability Policy Statement at retreat, "Continue dedicated
REET funding to be used for parks, recreation, and cultural acquisition and development
purposes."
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• June 2006 — Motion approved to dedicate the first $750,000 per year from REST 2 revenues to
Park Improvement Fund 125 and dedicate the excess to the Street Construction Improvement
Fund 112
Ms. Hite also provided language from the City Code:
• 3.29.010, imposing REST for Special Capital Improvement Fund (Fund: 126). All proceeds from
the tax imposed by this section ... shall be used for capital improvements, including those listed in
RCW 35.43.040 (now RCW 82.46.010). (Ordinance 2462, 1984)
• 3.29.015, imposing additional REST, (REST 2 - Park Improvement Fund). Revenues generated
from this tax shall be used solely for the financing of projects specified in a capital facilities plan
element of a comprehensive plan approved by the city council. (Ordinance 3031, 1995).
• 3.29.01.7, Creation of real estate excise tax 2 parks improvement fund into which shall be
deposited all proceeds of the tax imposed by ECC 3.29.015.
Councilmember Plunkett asked who created the presentation. Ms. Hite answered it was a team effort
between City Clerk Sandy Chase, Finance Director Lorenzo Hines and herself. Councilmember Plunkett
commented this was the best REST presentation he had seen. The Finance Committee requested this
information last year but the Finance Department was involved in the budget and unable to provide it.
Councilmember Buckshnis commented if the Council determined there were sufficient reserves to pay
down the bonds, the Council wants to reduce the $750,000 REST 2 allocation to a more reasonable
number. She asked how that would be accomplished. Ms. Hite observed past decisions have been made
by ordinance.
Finance Director Lorenzo Hines advised questions regarding policy implications of REET can be directed
to the Parks & Recreation Department and questions regarding financial implications can be directed to
Finance.
Mr. Hines explained as REET funds are distributed by Snohomish County, half is placed in Fund 125 and
the other half in Fund 126. He displayed beginning cash, revenue, expenditures and ending cash revenues
in REET 1— Fund 126 for 2007 - 2009 actual, 2010 actual as of December 31, 2010 and 2011 budget. He
pointed out local REET has declined in recent years, from $1.4 million in 2007 to a projection in 2011 of
$700,000. The actual for 2010 as of January 24, 2011 was $614,000.
Councilmember Wilson observed REET revenue appears to be increasing compared to 2009 - 2010. Mr.
Hines agreed, advising there had been a decrease since $1.4 million in 2007; the 2011 projection is half
that amount.
Mr. Hines displayed beginning cash, revenue, expenditures and ending cash revenues in REET 2 — Fund
125, noting the actual revenues and projects this funds are the same as Fund 126.
Mr. Hines displayed a schedule of bond payments made from REET Fund 126 in 2010 that total
approximately $700,000. He noted the schedule of payments for 2011 will be very similar. He also
provided the principle and interest schedule for the LTGO 1998 bonds that the Council is considering
paying off with the Public Safety Reserve Fund. The current outstanding balance is $1.319 million.
Councilmember Fraley- Monillas asked what Mr. Hines based his 2011 projection of $700,000 on. Mr.
Hines answered approximately $700,000 was budgeted in 2010; the actual is $614,000. The budget in
2009 was also $700,000 and actual was $520,000. He compared 2009 and 2010 and was comfortable
budgeting $700,000 in 2011.
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January 25, 2011
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Councilmember Fraley - Monillas asked when the funds from Fire District 1 (FD1) were allocated to the
Public Safety Reserve Fund. Mr. Hines answered that was done in March /April 2010. When the fire
assets were sold, approximately $700,000 was placed in the Public Safety Reserve. Later, approximately
$500,000 was moved from the Equipment Fund to the Public Safety Reserve. Both were done at Council
direction.
Councilmember Fraley - Monillas asked if there was a Public Safety Reserve Fund prior to the sale of
equipment to FDL Mr. Hines advised there was not.
Councilmember Buckshnis commented the transfer actually occurred prior to Council approval of the
amendment. She inquired about the cost overruns for Haines Wharf Park. In 2009 there is $2,175,090 for
construction projects and $400,000 for professional services and there were also some overruns in 2010.
Public Works Director Phil Williams explained a construction contract was signed for $1.634 million. A
number of issues have arisen in the completion of that project and expenditures currently total $2.3
million. Efforts are underway to settle with both the primary contractor and one of the key subcontractors.
A final number will not be available until claims from the contractors are resolved. Councilmember
Buckshnis noted the October amendment bundled Haines Wharf and the Interurban Trail. She pointed out
the Council never approved the cost overrun, it was included in the budget amendment.
Council President Peterson referred to the LTGO 1998 debt schedule and the interest total of $137,000.
He asked whether it reflected savings if the bonds were refinanced. Mr. Hines answered it did not; if the
bonds were refinanced, the interest amount would be lower given current rates.
Student Representative Gibson asked the point of the Public Safety Reserve if it had not existed
previously. Mr. Hines explained in fall 2009 the Council made a decision to contract for fire services with
FD1. The equipment and employees were transferred to Snohomish County FDL As a part of that
transaction, the City sold assets such as trucks, pumps, etc. to FD1 and the profit from the sale of the
equipment was placed in the Public Safety Reserve. Each year funds are contributed to the Equipment
Replacement Fund, Fund 511, for replacement of vehicles, etc. The Council also made a decision to move
the funds related to replacement of fire trucks into the Public Safety Reserve. He summarized the Public
Safety Reserve exists as a depository for proceeds from the sale of the Fire Department.
Councilmember Bernheim referred to the LTGO 1998 debt schedule and the $137,000 in interest 2011-
2014. He observed if the Council paid off the bonds, $137,000 more would be available for appropriation.
Mr. Hines agreed paying off the bonds would free up the amount scheduled to be paid from Fund 126.
Councilmember Bernheim commented once money started accumulating in the REST fund, instead of
using those funds dollar for dollar to pay off debt at 4.25% interest, the funds could be used as matching
funds for state, federal or regional grants. Mr. Hines agreed it could as long as it met the legal definition
of the use of REST.
Councilmember Bernheim asked if the funds in the Public Safety Reserve could be used as matching
funds for grants. Mr. Hines answered they could. He clarified funds in the REST funds are constrained by
the RCW that controls REST. The moneys in the Public Safety Reserve are constrained only by Council
direction.
Councilmember Buckshnis advised the City had the following reserves:
• $1.927 million in the Emergency Reserve Fund (Act of God), the use of which was changed last
year from "operating /Act of God" to only "Act of God"
0 $1.3 million in the Public Safety Reserve
0 $3 million in Operating Reserves
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January 25, 2011
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Councilmember Buckshnis summarized the City has approximately $6 million in reserves, representing
approximately 20% of the City's operating budget. She asked whether other cities maintained reserves
that high. Mr. Hines commented there was a difference in the definition of reserves, money that could be
used for any purpose. The $1.9 million is restricted to catastrophic emergencies per Council ordinance.
Councilmember Buckshnis pointed out the Council could change the use of that fund. During the Laura
Hall administration, it was designated for economic downturn.
Councilmember Buckshnis advised Bothell has 15% general/Act of God reserves which they believe is
excess. She preferred to optimize the funds in the Public Safety Fund by paying off the bonds.
Councilmember Petso provided a PowerPoint presentation, identifying the 2011 General Fund Budget:
Revenue $32.5 million
Expenses $32.3 million
Ending Balance* $ 3.0 million
Target Ending Balance $ 2.7 million
* Includes estimated beginning working capital balance $2.8, and does not include $1..9 million
emergency reserve
She summarized the City has a balanced 2011 budget with reserves that exceed the target ending balance.
She provided the pros and cons of the following options for the use of the $1.3 million in the Public
Safety Reserve:
1. Do nothing with the 1.3 million
Pro: We still have the money
Con: We earn 0% on the money, hurts levy, no park acquisition or capital projects, we still pay
interest on City Hall ($137,828), 126 Fund remains borderline
2. Add the 1.3 million to the general fund
Pro: Temporarily increases working capital balance
Con: We earn 0% on the money, hurts levy, no park acquisition or capital projects, we still pay
interest on City Hall ($137,828), 126 Fund remains borderline
3. Do projects with the 1.3 million
Pro: We get 1.3 million in park acquisition or projects
Con: Hurts levy, we still pay interest on City Hall ($137,828), 126 Fund remains borderline
4. Pay off City Hall with the 1.3 million
Pro: Saves interest on City Hall ($137,828), opens revenue stream of average $330,000 per
year (equivalent to $4 million in park acquisition or projects via bonds, before grants),
fixes 126 Fund
Con: Hurts levy
Councilmember Petso provided the following summary of the options:
Option
Saves
$137,828
Helps Levy
Parks and
Projects
Fixes 126
Fund
Keeps the
Money
1. Do Nothing
No
No
No
No
Yes
2. Add to GF
No
No
No
No
No
3. Do Parks &
Projects
No
No
Yes
No
No
4. Pay off City Hall
Yes
No
Yes
Yes
No
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January 25, 2011
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Councilmember Petso pointed out option 2 did not have any obvious benefit. The primary discussions
have been between options 1 and 4. She summarized there is no option for the funds that helps the levy;
either citizens can say the City has $1.3 million and therefore a levy is not needed or that the $1.3 million
was spent and therefore the City does not need a levy. She concluded the levy was not a relevant
consideration in this decision. She pointed out the funds in the Public Safety Reserve were one -time
revenues and several Councilmembers do not want to spend one -time revenue on ongoing expenditures.
She suggested it may be appropriate to identify a revenue source for ongoing expenditures as well as do
something constructive with the $1.3 million in the Public Safety Reserve.
Mayor Cooper opened the opportunity for public comment.
Ron Wambolt, Edmonds, disagreed that it was never envisioned that the funds from the Fire District 1
agreement would be used to cover General Fund obligations. The Council had several contract options to
choose from in 2009 and selected option 4. One of the key elements of option 4 was selling the fire
apparatus and keeping the fire stations and land; in other words, sell depreciating assets and retain
appreciating assets. A second element of the approved option was to place the proceeds in the General
Fund to run the City. One of the reasons given by Councilmembers who voted to retire building debt was
the $1.3 million from asset sales should not be used to cover operational expenses, the rationale being
since the source of the funds was capital assets, its use should be restricted to capital assets. He pointed
out there are two types of capital assets — fixed (land and buildings) and depreciating assets (fire
equipment). If the funds from Fire District 1 had been from the sale of fire stations, it would be proper to
retain those funds for expenditures related to buildings. Because that is not the case, it is appropriate to
use the $1.3 million for operational purposes. Before using the $1.3 million to pay off debt now paid by
REET 1 funds, he urged the Council to change the rules for the use of the REST 1 funds to disallow its
use for park purposes and specify their use exclusively for roads, sidewalks, and building maintenance.
The City has 45 parks and although parks are important, there are more critical needs at this time. With
regard to a comment made by a citizen at last week's meeting that the City could make 50% on its money
by City spending $1 million on a park and obtaining a grant for $500,000, he pointed out the 50% was
only a paper gain because the grant would have to be returned if the City ever tried to realize the gain.
Roger Hertrich, Edmonds, commented many thought the REET fund had sufficient money,
approximately $7 million, to make purchases and he questioned how those funds had been spent. The
current use of REET funds for bond debt precludes the use of REET funds for any other purpose. He
viewed the Council's plans to invest the $1.3 million in the payoff of bonds as appropriate because the
City has ample reserves. If the bonds are paid off, as REET funds accumulate, funds will be available.
The use of the REET funds can be discussed in the future such as at the retreat. He noted the City can
realize a 50% increase by using the REET funds as matching funds for a grant. In his opinion the Council
had already voted to pay off the bonds and an ordinance was not required.
Dave Page, Edmonds, referred to a headline in the newspaper that the Council voted 4 -1 to spend $1.3
million on parks. He noted the ability to use the funds as matching funds for grants would provide a
return on investment. He agreed with Mr. Wambolt that there were construction projects that needed
attention before the City purchased any parks. He feared paying off the bonds would negatively impact a
levy. He withdrew much of what he said last week, noting he had been angry. He relayed projections for
real estate values to decrease at least 3% in Edmonds in 2011 and doubted Edmonds would realize any
increase in REET revenues.
Bill Vance, Edmonds, commented on the Council's apparent discovery of a $9 million reserve and
suggested the 2010 -2011 Citizens Levy Committee could disband because it was no longer needed. He
expressed concern that the Council were like "spend happy drunks" and want to make capital acquisitions
but continually forget about the maintenance and operating cost associated with capital purchases that it
Edmonds City Council Approved Minutes
January 25, 2011
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does not appear the City could afford. The reality is the City cannot keep up with the current maintenance
and operating costs of the City's parks and buildings.
Councilmember Wilson referred to Councilmember Buckshnis' comment about Bothell's 15% reserves,
advising he was certain that did not count one -time funds. Bothell has set aside all the construction sales
collected over the last decade which Edmonds did not do. Bothell's 15% is greater when other reserves
are included. Mukilteo and Everett both have over 30% in reserves. Certain cities in Washington State are
required to have at least 30% in reserves, large cities such as Seattle. Even if all the money "sitting
around" is counted as part of the City's reserves, Edmonds is not comparable to other cities.
To Councilmember Petso, Councilmember Wilson pointed out all reserve funds are one -time funds. He
agreed the City should not spend one -time funds on ongoing expenses. He pointed out approximately half
the $1.3 million in the Public Safety Reserve was from the Equipment Rental Fund; all those moneys
were from the General Fund. At the time the decision was made to contract with Fl) L he was among the
biggest advocates for not using the funds from the sale of assets for ongoing operational expenditures.
That was a policy decision made by the Council that can be changed. If the City needs money, cash is
king, and those funds would be available.
To the comments that whatever the Council does, the funds will go toward acquisition, Councilmember
Plunkett referred to State law governing the use of REST, Fund 125, noting the funds can be used for
public works projects, planning, reconstruction, repair, rehabilitation, improvement of streets, roads,
highways, sidewalks, lighting systems, traffic signs, bridges. Other than one Councilmember, there has
not been any reference to the potential for acquisition. If Council - imposed restrictions are eliminated,
Fund 125 can be used for construction including rehabilitation of streets and roads.
Councilmember Buckshnis disagreed with Councilmember Wilson, advising the Mayor of Bothell as well
as their CAFR indicate reserves of 15 %. Mukilteo has two months reserves. She summarized the City has
a general and one -time fund reserves totaling approximately $6 million. Other cities such as Shoreline,
Everett and Lynnwood, are obtaining grants for street construction. If REST funds are freed up, it will be
possible to do street improvements. She preferred to optimize funds where possible.
Councilmember Petso commented when she thought the Council had taken final action on paying off the
bonds, she was prepared to discuss the use of REST funds tonight. Although there was a belief in the past
that Fund 126 was for park acquisition, the debt service schedule reveals that that was ignored from time
to time because the debt service paid from that fund was for the Edmonds Center for the Arts, City Hall,
Anderson Center and library roof. Only one park acquisition has been done via bonded indebtedness paid
from Fund 126, Marina Beach Park, which she fully supported.
Councilmember Petso suggested discussing BEET allocations at the retreat, scheduling action on the
budget amendment at a special Council meeting on February 8 prior to committee meetings, and
proceeding with refinancing the bonds on February 18.
Council President Peterson pointed out according to Councilmember Petso's presentation, each option
hurt the levy. The Council voted to establish a Levy Committee so obviously there is belief that a levy is
needed in the not too distant future. If a levy is needed, he questioned why it was preferable to spend the
$1.3 million if it hurt the levy versus holding the $1.3 million if that also hurt the levy. If a levy was
placed on the ballot and it was doomed to fail because the Council had either spent or saved the $1.3
million, he preferred to have the $1.3 million rather than having spent the money or have it in a dedicated
fund. With regard to the idea of maximizing grants with matching funds from REST, he guaranteed the
City could also obtain the same or similar grants and use cash as matching funds. He noted grants are very
competitive and the availability of cash as matching funds increases the City's chances of obtaining
grants.
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January 25, 2011
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Council President Peterson pointed out three Councilmembers currently on the Council as well as the late
Councilmember Olson and former Councilmember Orvis voted in favor of the FD1 proposal and
Councilmember Bernheim voted against it. As. Mr. Wambolt stated, that vote made those funds available
to the General Fund. Although Councilmember Wilson spoke against using the FD funds for operations,
the final vote was to place the funds in the General Fund.
Council President Peterson noted although Mr. Page has apparently changed his mind, the Council has
not heard any new information and he disagreed with the Council basing its decision on a citizen's
comments.
Councilmember Fraley- Monillas was excited about the Council discussing REST allocations at the
retreat. She was not comfortable taking the City in a specific direction without further information
regarding grants and matching funds.
Councilmember Plunkett commented although he was hesitant to take a vote tonight, he would support
Councilmember Petso if she made a motion. He reiterated the money from FD was never to be for use in
the General Fund; everyone knew it was one -time money and this Council had no intent of spending one-
time funds on operating. He summarized the Council's intent was to use the money asset for asset, not for
operating but for capital opportunities.
Councilmember Bernheim asked if the Council had already approved paying off the bonds.
Councilmember Plunkett responded the Council had only passed a motion regarding intent. Mayor
Cooper explained the Council passed a motion requesting an ordinance be prepared. Payoff of the bonds,
different than refinancing /refunding bonds, requires two actions, 1) a budget amendment to transfer the
funds from the Public Safety Reserve so that the payment can be made, and 2) approval of an ordinance to
pay off the bonds. The only action the Council has taken is to request an ordinance be prepared to payoff
the bonds.
Councilmember Bernheim asked whether every budget amendment required five votes for approval.
Mayor Cooper answered no and referred to a matrix provided by bond counsel regarding different
categories of budget amendments. This particular budget amendment is in the category of amendments
that, in the opinion of bond counsel from Foster Pepper, requires five votes because it is unanticipated and
occurring at a time that is separate and unique from the normal mid -year budget amendment process. He
summarized if a budget amendment related to the bond payoff occurred with all the other budget
amendments, only four votes would be required.
Councilmember Bernheim explained paying off the bonds was good for the levy because it would save
the taxpayers $137,000 over a 4 -year period in what would otherwise be interest payments on a $1.3
million loan at 4.25% interest. He noted the City could not invest the funds and earn 4.25 %.
Councilmember Petso suggested the Council discuss BEET at the retreat and return to this issue on
February 8 prior to committee meetings.
COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS,
THAT THE COUNCIL TAKE UP THE REET DISCUSSION AT THE RETREAT AND COME
BACK TO THIS ISSUE (BUDGET AMENDMENT) ON FEBRUARY 8, 2011 PRIOR TO
BREAKING INTO COMMITTEES.
Council President Peterson advised a discussion regarding REST is scheduled on the retreat agenda. He
noted much of the information staff provided regarding REET was also provided at last year's retreat. The
Edmonds City Council Approved Minutes
January 25, 2011
Page 9
bond ordinance is scheduled on February 15. He asked whether a public hearing would be required on
February 8. City Clerk Sandy Chase advised a public hearing was not required.
Council President Peterson preferred to have both occur at the February 15 meeting rather than expending
staff time for a Council meeting on February 8. He suggested bond counsel prepare two ordinances, one
that refinances the City Hall bonds and a second with the City Hall bonds paid off. Mayor Cooper relayed
Mr. Hines' indication that this request could be made of bond counsel.
Councilmember Wilson echoed the request not to schedule action on February 8. He also supported
taking a vote tonight, doubting that further discussion at the retreat would influence any Councilmember's
decision. He was also prepared to vote on changing the existing $750,000 threshold for the use of REST
Fund 125. He encouraged the Council to move forward with a decision tonight.
Councilmember Petso explained one of the reasons she preferred to address the issue on February 8 was it
was a huge burden on bond counsel to prepare alternate ordinances. Typically, bond counsel markets
bonds that morning, informs the Council at the meeting of the response and requests approval. Addressing
it at a meeting on February 8 would be far superior for bond counsel to prepare a coherent set of bond
ordinances compared to doing everything at the February 15 meeting.
For those interested in saving City Attorney funds, Council President Peterson advised City Attorney
Scott Snyder will be present at the February 15 meeting but is not typically present on committee night.
He noted other staff time would also be required for a meeting on February 8. Councilmember Petso did
not anticipate Mr. Snyder would be needed at the February 8 meeting and suggested any questions of Mr.
Snyder could be submitted during the next two weeks.
Councilmember Plunkett asked whether bond counsel would be present on February 8. Mayor Cooper
answered they would not be required to be present for a budget amendment. Bond counsel would be
present at the February 15 meeting for approval of the ordinances to refinance the bonds.
Councilmember Wilson pointed out the Council is scheduled for a 4 hour meeting on February 1., at least
8 hours at the Council retreat on February 4, and at least 4 hours at the retreat on February 5. Typically
Council committee meetings are one hour and a meeting to discuss the budget amendment would add
another hour. The proposed motion would create a new meeting to discuss what the Council cannot form
an opinion about tonight even though the Council formed an opinion a few weeks ago via a 4 -1 vote.
UPON ROLL CALL, MOTION CARRIED (4 -3), COUNCILMEMBERS BERNHEIM, PETSO,
PLUNKETT AND BUCKSHNIS VOTING YES; AND COUNCIL PRESIDENT PETERSON AND
COUNCILMEMBERS FRALEY - MONILLAS AND WILSON VOTING NO.
Mayor Cooper suggested scheduling the Council meeting at 6:00 p.m. followed by committees. Council
President Peterson agreed.
Councilmember Wilson asked whether the Council was interested in discussing the threshold for REST
Fund 125 tonight.
Councilmember Buckshnis relayed Councilmember Fraley- MonilIas's request for more information.
Councilmember Fraley- Monillas commented she would like an opportunity to digest the information
further. She was not certain she was able to support a specific threshold tonight and would like to have
continued discussion.
Council President Peterson expressed concern with taking action tonight when it was not scheduled on the
agenda, noting this is an important policy discussion to have at the retreat.
Edmonds City Council Approved Minutes
January 25, 2011
Page 10
Councilmember Plunkett commented he was prepared to take up the issue as soon as possible.
6. AUDIENCE COMMENTS
Kylene Knapp, Shoreline Sign and Awning, speaking on behalf of Klein Jewelers who is moving into
downtown Edmonds, explained the site does not have a wall for signage and they are not allowed to place
illuminated signage on the canopy in front of their building. She requested the Council review the sign
code and either make an exception or rewrite the code to allow businesses to have an identity in the
downtown business district. The code states no illuminated signs are allowed on or under an attached
awning. As a result, several locations around the roundabout are not allowed to have illuminated signage.
She proposed a halo -lit sign for Klein Jewelers similar to Rankin Jewelers or push through letters such as
the bank on the corner of 5`" & Dayton. She explained many cities do not like backlit signs because it is
usually a big case of plastic with a great deal of white area. Bellevue, Kirkland and other cities are
addressing this via push - though or halo -lit letters that allow businesses to have an upscale, classy
illuminated sign without being garish. For Klein Jewelers they propose a reverse pan channel letter where
the light will glow back against the background.
Roger Hertrich, Edmonds, referred to the Council's action to payoff the bonds and direction to staff to
return with an ordinance which typically occurs on a Consent Agenda. That did not occur because the
Council President changed it to a budget amendment. He asked whether staff had prepared the ordinance
that the Council directed be prepared. He questioned the need for a budget amendment at this time
because budget amendments typically occur after funds are expended. He commented on the importance
of having funds available for grant matching funds, noting the City purchased waterfront with grant funds
which prohibits the Ferry System and/or Highway System from taking it away. He endorsed the concept
of further discussion. He anticipated the general public did not object to the Council taking this action.
Ron Wambolt, Edmonds, pointed out the minutes reflect the intent of the $1.3 million was the General
Fund. To Councilmember Bernheim, he commented relieving the BEET funds had nothing to do with the
General Fund. If a levy was needed for the General Fund, it had no impact on REET because the REET
funds were not part of the General Fund.
Mike McCluskey, Edmonds, expressed concern the expenditure for Haines Wharf was originally $1.69
million and was now up to $2.3 million. He observed the sidewalks being chipped down more than once
for an overlay and anticipated the contractor who poured the concrete would be responsible. He
recommended the Council determine how the overage occurred.
7. COUNCIL REPORTS ON OUTSIDE COMMITTEEBOARD MEETINGS
Councilmember Buckshnis reported on efforts at WRIA 8 to move the Edmonds Marsh from the ten year
plan to the three year plan. She advised the Governor's budget contains $15 million for the Puget Sound
Acquisition and Restoration Fund. She planned to contact the City's Lobbyist Mike Doubleday to ensure
Edmonds has a voice in retaining those funds in the budget. She planned to attend the Snohomish County
Tomorrow meeting where consideration is being given to the Interjurisdictional Agreement on Affordable
Housing, units of 500 -700 square feet with rents under $1000 /month.
Councilmember Fraley- Monillas reported the Snohomish County Health Board is considering no-
smoking policies in county -owned multi -unit housing. The Board is also discussing e- cigarettes,
electronic cigarettes that resemble a cigarette, do not create smoke, but do contain nicotine. The effects on
people who are around an e- cigarette user are unknown.
Edmonds City Council Approved Minutes
January 25, 2011
Page 11
Councilmember Plunkett relayed the Historic Preservation Commission acknowledged that the Frances
Anderson Center is now on the Historic Register and discussed where to place the plaque. With regard to
whether the 1928 and/or the 1947 portion of the Anderson Center was designated, he offered to provide
the Council with Planning Manager Rob Chave's response which will impact where solar panels can be
located.
Councilmember Plunkett relayed the Edmonds Historic Society's request to trim the Andrew Carnegie
building with white lights. The Commission suggested spotlights rather than trim lights. The Historic
Society was informed that a Certificate of Appropriateness would be required for lights.
Councilmember Petso reported the Public Facilities District meeting included reformatting financial
reports for the ease of use of Board Members. The Edmonds Center for the Arts operated in the black for
2010 and they expect to operate in the positive in 2011. For those seeking an idea for Valentine's Day,
she reported the Edmonds Center for the Arts has a comedy production on February 12. She noted the
Center is conveniently located compared to venues in downtown Seattle.
Councilmember Petso reported on the fantastically entertaining production of the Drowsy Chaperone at
the old Woodway High School. They will be performing again this weekend.
Councilmember Wilson announced his appointment of John Botten to the Tree Board. He announced the
Snohomish County Cities selected him as one of the delegates to Puget Sound Regional Council
Economic Development Committee. With regard to the Lake Ballinger Forum, Edmonds staff is doing a
phenomenal job guiding that effort. The Forum has developed creative funding possibilities and may be
able to eliminate flooding such as occurred in December via relatively inexpensive options.
Councilmember Bernheim reported the Port's planning for Harbor Square is proceeding. The Port has
appointed a Steering Committee that will hold public meetings to establish parameters for development.
Port Commissioners assured him they have heard previous community objections to plans at Harbor
Square and are focusing on pedestrian access, protection of the Marsh, and integrating the project into the
environment.
Councilmember Bernheim reported the Seashore Transportation Forum included discussion regarding the
virtues of the Swift bus. He encouraged Councilmembers and the public to take Swift..
Councilmember Bernheim reported the Highway 99 Task Force is working on codes to expand
development opportunity along Hwy. 99 as well as working more closely with the international business
community.
Mayor Cooper reported he will be in Olympia tomorrow meeting with Representative Liias regarding
transportation issues. With regard to the Governor's Regional Ferry District proposal, the Governor
summoned the leaders of all the Ferry District counties to a meeting with her this week. Apparently the
Governor believes her proposal is still alive and is working County Executives and Councils to transfer
the ferry system to a Regional Ferry District. He noted the resolution the Council authorized him to sign
was very timely.
Mayor Cooper reported Council President Peterson and he will be participating in the New Energy Cities
workshop on January 27 and 28. He offered to report to the Council after Climate Solutions and New
Energy Cities prepare their final report at the conclusion of the workshop.
Edmonds City Council Approved Minutes
January 25, 2011
Page 12
Mayor Cooper reminded the Council of the Regional Fire Authority (RFA) discussion on January 31.
Representatives from Kent and Auburn as well as John Caufield, Mountlake Terrace, will make
presentations. The eight Mayors from this area have invited City Councilmembers as well as Fire
Commissioners from surrounding jurisdictions to attend. It is not a decision- making meeting but a
meeting to gather information, learn how RFAs have worked in other areas, and steps to form a RFA.
Mayor Cooper reported Comcast was in the City today filming a 10- minute community tourism
promotion for their On Demand site. Edmonds' program will be broadcast during March and April and
the City will have an opportunity to link the broadcast to its website. This is done at no cost to the City.
Mayor Cooper announced the City of Edmonds Night at the Silvertips at Comcast Arena event on
Saturday, February 5. Tickets are available through the Chamber of Commerce. He will drop the
ceremonial first puck. He encouraged the public to purchase discounted tickets and attend the game.
9. COUNCIL COMMENTS
Councilmember Bernheim expressed disappointment that several documents regarding the bond
presentation were provided after the Council packet had been prepared. He preferred to have material in
the agenda packet to ensure the Council had an opportunity to review the information.
Councilmember Bernheim reminded that City Attorney interviews will be conducted at the February 1
Council meeting. He invited the public to attend the interviews and/or submit questions.
Councilmember Buckshnis relayed that she introduced Parks & Recreation Director Carrie Hite to the
Edmonds Floretum Garden Club and the members were encouraged about the Old Mill Town park.
Councilmember Buckshnis announced a free CPR class at the Senior Center on February 14. She reported
the developer of the post office who also developed the Belair apartment complex made a presentation to
the Economic Development Commission. She requested his development proposal be scheduled on the
retreat agenda due to the slope on the property that would allow an additional story without impacting
views.
Councilmember Buckshnis reported the Citizen Levy Committee is developing a summary of where they
are and where they intend to go. She thanked everyone who spoke to /emailed her about the solar project
the Council discussed at the January 4 meeting; she has submitted a variety of questions to staff and the
Co -op.
Councilmember Plunkett reported the February 1 City Attorney interviews are open to the public and
begin in Council Chambers at 5:00 p.m. He then recognized Mike McCluskey who works at Safeco Field
and calls him early the next morning after every Mariner win.
To Mr. Wambolt who suggested he utilize what is in writing rather than his recollection, Councilmember
Plunkett stated he did not want to use one -time funds for operating and did not believe the Council ever
intended to and hoped this Council did not intend to.
Council President Peterson advised Port Executive Director Bob McChesney will provide an update
regarding the Port at the retreat and Fire District 1 Chief Ed Widdis will provide a summary regarding a
Regional Fire Authority.
Council President Peterson advised approximately 60 people have RSVP'd for the January 27 and 28
New Energy Cities Workshop. He was hopeful members of the federal delegation will be attending. He
thanked the media for covering that event.
Edmonds City Council Approved Minutes
January 25, 2011
Page 13
With regard to Councilmember Bernheim's concern with items not included in the Council packet,
Council President Peterson explained Councilmember Petso's and staff's presentations were last minute
additions to ensure information was provided to the Council.
Council President Peterson referred to the ad hoc committee Mayor Cooper is forming to consider the
formatting of financial documents, advising he plans to serve on the committee and would like to have 1-
2 other Councilmembers participate along with the citizens who have volunteered. He anticipated 2 -3
meetings would be required.
Council President Peterson reported he adopted a puppy this weekend from the Everett Animal Shelter.
He commended Snohomish County and the City of Everett for their remarkable animal shelter.
10. ADJOURN
With no further business, the Council meeting was adjourned at 9:12 p.m.
Edmonds City Council Approved Minutes
January 25, 2011
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