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02/07/2003 City CouncilCity Council Retreat February 7 & 8, 2003 Third Floor Brackett's Room — Edmonds City Hall ELECTED OFFICIALS PRESENT STAFF PRESENT Friday, February 7, 2003 Gary Haakenson, Mayor Dave Earling, Council President Michael Plunkett, Councilmember Deanna Dawson, Councilmember Jeff Wilson, Councilmember Lora Petso, Councilmember Richard Marin, Councilmember David J. Orvis, Councilmember (Arrived in afternoon.) Peggy Hetzler, Administrative Services Director Brent Hunter, Human Resources Director Stephen Clifton, Community Services Director Duane Bowman, Development Services Director Police Chief Dave Stern Fire Chief Tom Tomberg Arvilla Ohlde, Parks & Recreation Director Noel Miller, Public Works Director Scott Snyder, City Attorney (Arrived late.) Linda Carl, Executive Assistant to Mayor Jana Spellman, Executive Assistant to Council Dave Gebert, City Engineer Don Fiene, Assistant City Engineer Darrell Smith, Traffic Engineer Brian McIntosh, Assistant Director, Parks & Rec Jeannine Graf, Building Official CALL TO ORDER Council President Earling called the meeting to order at 10:00 a.m. He called on Mayor Haakenson for his opening comments. Mayor Haakenson explained that today's agenda would talk about revenues and the future of the City and asked the Council to think 5 to 10 years from now, that they are charged with doing what is right for those who will be living here in the next 20 years and not necessarily for those who want it to remain like it is. He informed the Council the City needed a defined plan for the development of Highway 99 and the downtown area that the Council will defend in the face of controversy because of its rightness. Mr. Haakenson said the Council needs to set a policy that they have ownership of and upon which the City can build its future. He touched on the human resources study done in 1996 and explained what the study was supposed to achieve and read the goals stating that some had been met and some had not. He said the only two people remaining when that study was done was himself and Council President Earling and asked the Council what. its goal and vision was for Edmonds. The Mayor said he didn't see any financial windfalls coming Edmonds way and asked the Council how the City was going to operate in the future, what services will be provided, that the City will be forced to downsize and asked the Council how that was to be done. He said he and the staff are looking to the Council for direction. He urged the Council to take a long -range view and determine where the City should be in 2010. He also asked Council President Earling to appoint a committee to study the need for a strategic plan as a blueprint to guide the City. He also asked the Council to consider doing a citizens' survey to determine. what the citizens' expectations are from the government today and what they expect 5 to 10 years from now. Mr. Haakenson also asked the Council its expectations of staff for 2003 — where does the Council want staff to focus their energy. He then turned the meeting over to Council President Earling. Mr. Earling asked the Council for comments, there were none. He explained that he asked the Sr. Ex. Assistant to the Council to take abbreviated, summary minutes. Mr. Earling thanked the Mayor for his comments' and made -a few comments asking if the Council, Mayor and staff were willing to make some bold gestures to alleviate the troubled economic and financial times faced by the City. He said he felt the vision for the City should come from the Mayor and staff and be brought to the Council for deliberation. Mr. Earling finished by saying that goals needed to be defined for the City. He then called on Peggy Hetzler, Administrative Services Director. CITY'S FINANCIAL POSITION AND 3 -YEAR PROJECTIONS Presenter: Peggy Hetzler, Administrative Services Director Ms. Hetzler began with the General Fund and covered revenues, expenditures, unknowns, and issues. She stated that if no levy lid lift or other new revenues were found, General Fund expenditures must be reduced by $900,000 for 2004 in order to maintain minimum level of ending cash. She explained that if no cuts are made, the General Fund is expected to deplete its cash reserve by mid -year 2005. A question and answer period along with a general discussion occurred between staff and Council. She continued with the Combined Utility, Street Fund, Street Improvement Fund, Building Maintenance, and Criminal Justice Fund and conveyed information regarding revenues, expenditures, declining, minimum and depleted ending cash balances, and issues. Ms. Hetzler asked what Public Safety costs should be included in any potential lid lift, what alternative revenue sources can be considered, what level of General Fund ending cash is acceptable for future years, what cycle for street overlays is acceptable, what level of building maintenance is acceptable, should the City continue to own buildings that are used for non -City programs and should the City re- evaluate the use of the dedicated capital fund? A question and answer along with a general discussion period occurred between staff and Council after Ms. Hetzler's presentation. The Assistant City Engineer Don Fiene was then asked to comment on Transportation Capital Projects and Fund 112. Mr. Fiene gave an overview of transportation capital projects before the passage of Initiative 776 and after. He explained that the City had lost $350,000 due to the passage of 1 -776 and what that had done to future street overlays and improvements. He presented 5 pre and post -I 776 Scenarios. Mr. Fiene ended by asking the Council to consider and discuss the following: mitigation fees, how much and to what impact on new development, $500,000 bond issue, transfer of $200,000 from Fund 330, $350,000 per year levy, program adjustments, and other possible funding mechanisms. There was a general discussion following this item. POTENTIAL REVENUE STREAMS The following potential revenue streams were addressed: • Public Safety Lid Lift — presented by Fire Chief Tomberg and Police Chief Stern • Casinos — Mountlake Terrace Police Chief Scott Smith • Internet Initiative — Rick Jenness Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 2 Economic Development on Hwy 99 & Downtown — Duane Bowman, Development Services Director Funding Parks — Arvilla Ohlde, Parks and Recreation Director Fire Department Fees — Fire Chief Tomberg Public Safety Lid Lift: Chief Tomberg handed out a memo that suggested an approach for the purpose of discussion. The memo was intended to identify a process to evaluate placement of a public safety levy lid lift measure on the ballot this year. After a discussion, question and answer period, the Council came to a consensus that the Public Safety lid left should be put on the ballot this year and the topic was assigned to the Public Safety Committee to come back with a report to the full Council in April 2003. Casinos: Mountlake Terrace Police Chief Scott Smith touched on the following topics: zoning, gaming operation, security, police calls for service, and revenue. He stated that the Silver Dollar Casino which has only 15 card tables that brought in $620,600 in 2002 at a tax rate of 8 %. He stated the tax rate would be going to 10% in the year 2003 so there will be a definite increase in that revenue stream. He said the casino has excellent security and the number of police calls in 2002 for services was 20. After a discussion, question and answer period, it was decided to hold a public hearing on gaming sometime during the month of July 2003. Internet Initiative: Rick Jenness of Codesic Consulting said while watching the Council meetings during the budget process for 2003, he wanted to bring an idea for a wireless network controlled by the City to the Council feeling that it could bring in a new revenue stream. He explained his vision and core objectives to the Council and staff. After a discussion, question and answer period, the wireless network (internet) initiative will go to the Finance Committee for review and discussion. The Committee will report back to the full Council in April, 2003. Economic Development on Hwy 99 and Downtown: Duane Bowman, Development Services Director, began by suggesting the formation of a Highway 99 /Downtown Task Force with members consisting of 2 Councilmembers, 2 business /property owners, 2 residents, a representative from the Chamber of Commerce, a Planning Board member, Alliance member and staff members as needed. He then outlined a possible work plan. A general discussion took place with the outcome of establishing the Highway 99 /Downtown Task Force which will report to the Community /Development Services Committee. The Community /Development Services Committee will then report on a monthly basis to the full Council. Funding Development Services Department: Mr. Bowman handed out a small packet which gave an overview of Development Services Department Funding. His handout also covered permit fee increases, gave examples of lowered or subsidized permit fees, examples of permit fees that should be eliminated, and examples of new or increased permit fees. He also pointed out that staffing levels in 2002 in the Development Services Department were at a bare minimum to meet the Department needs and that with permit fee increases he would be able to bring the Department back to the 2002 level (reinstatement of personnel cuts in 2003). He discussed expedited permit review and went over a survey of other cities expediting practices. A discussion period ensued with an outcome that the Development Services Director will come to the full Council for a public hearing by the middle of March, 2003 regarding fee increases in the Development Services Department. Funding Parks: Arvilla Ohlde, Parks and Recreation Director, gave the Council and staff a packet which contained an overview of fees and services, looking for new revenue streams, how much money it takes to fund Park Maintenance, what is being done at the State level, and how beneficial parks are to the citizens' health and welfare. Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 3 She explained that a Legislative Task Force on Local Parks and Recreation Maintenance and Operations had been formed under Substitute House Bill 1836 and discussed the outcome of that Task Force and distributed its report. Ms. Ohlde then followed with a presentation on Edmonds fishing pier parking lot revenue and potential revenue streams for the flower program, Beach Rangers, and Yost Pool. After her presentation there was a question and answer period between Council and staff with an assignment for the Community /Development Services Committee to discuss park fees along with parking lot revenue on the waterfront and to bring forth recommendations to the full Council. Fire Department Fees: Chief Tomberg gave a synopsis of what the revenue increases for 2003 will be in the Fire Department which consisted of EMS Levy, Woodway BLS /Fire Contract, Woodway ALS Contract, Esperance BLS /Fire Contract, and Esperance ALS Contract. He then spoke about increases to existing fees stating that any new proposed fees should be evaluated in the context of the current EMS levy, impact on the business community, and any effort to pass a Public Safety Levy Lid Lift. Chief Tomberg gave the Council and staff a handout which listed existing and possible new revenue sources. Chief Tomberg concluded with questions from Council along with a general discussion. Council President Earling sent Fire Department Fees to the Public Safety Committee for discussion and recommendations to the full Council. The Mayor then added a suggestion for increased revenue streams from raising the cost for a parking tickets and the cost of pet licenses Mr. Earling concluded the meeting by encouraging all present to understand the reality of the dismal financial condition the City finds itself in based on Ms. Hetzler's presentation early in the morning and understand that there are some cost estimates that Finance cannot predict at this time. He also pointed out that the earlier the Council completes all of the topics that were brought to the Retreat and assigned to various Council committees, the better off financially the City will be in 2004. He then adjourned the meeting at 4:50 p.m. Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 4 ELECTED OFFICIALS PRESENT STAFF PRESENT Saturday, February 8, 2001 Gary Haakenson, Mayor Dave Earling, Council President Michael Plunkett, Councilmember (Left early afternoon.) Deanna Dawson, Councilmember Jeff Wilson, Councilmember Lora Petso, Councilmember Richard Marin, Councilmember David J. Orvis, Councilmember Peggy Hetzler, Administrative Services Director Brent Hunter, Human Resources Director Stephen Clifton, Community Services Director Duane Bowman, Development Services Director Police Chief Dave Stern Fire Chief Tom Tomberg Arvilla Ohlde, Parks & Recreation Director Noel Miller, Public Works Director Scott Snyder, City Attorney (Left early.) Linda Carl, Executive Assistant to Mayor Jana Spellman, Executive Assistant to Council CALL TO ORDER Council President Earling called the meeting to order at 9:00 a.m. and made a few opening comments. He then called on Mr. Bowman to present the next agenda item, Growth Management Issues. GROWTH MANAGEMENT ISSUES Infill Policy Discussion on Council Role in Land -Use Hearings Presented by: Duane Bowman Mr. Bowman began by defining growth management issues facing the City. He informed the Council and staff that the Planning Board will be reviewing the potential growth targets on February 12, staff would conduct a work session with City Council on February 25, 2003 to go over in detail the population projection process, and the Planning Board will be holding a public hearing on February 26, 2003. There was a discussion, question and answer period after which Mr. Bowman then gave a presentation on infill to meet population goals. Infill Policy: Mr. Bowman then introduced the next topic, Infill Policy to Meet Population Goals, by handing out a memo from the Planning Board regarding a potential list of "reasonable measures" related to buildable lands in Edmonds. In this memo the Planning Board stated that it had identified a preliminary list of some "reasonable measures" for consideration by the City in order to encourage infill development of its "building lands" in the coming years. The memo then quoted what the State law requires regarding the Building Lands Program, what was required for Edmonds, how Edmonds compared to other cities regarding achieving urban densities and meeting its growth projections, and that the Planning Board believes it is important for the City to continue to demonstrate its commitment to encouraging infill development consistent with its comprehensive plan. The memo contained a potential list of "reasonable measures" for consideration by the City of Edmonds for consideration by the State and a list of the "reasonable measures" already undertaken by the City of Edmonds. After a discussion, question and answer period, there was a consensus by the Council to have a workshop on a Saturday at the end of March or the first of April, 2003 to discuss infill policy issues. Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 5 1 Council role in Land -Use Hearings: This agenda item was put on for discussion as to the whether land - use hearings (quasi - judicial) should go from the Hearing Examiner to the Council for appeal or to Superior Court. After much discussion between the staff, Council and City Attorney, this question was sent to the staff who will take it to the Planning Board for their discussion and recommendations which will be brought back to the Council. SIDEWALKS Presented by: Duane Bowman, Development Services Director Noel Miller, Public Works Director The next agenda item pertained to sidewalks, how they were prioritized, how grants were obtained and why some sidewalk projects received higher prioritization. The detrimental impact of Initiative 776 on capital improvements such as sidewalks was also pointed out because of the loss of approximatelX $350,000 for such projects. The particular area of interest was the proposed sidewalk project on 76 Avenue West from Meadowdale Beach Road to North Meadowdale Beach Road. . Councilmember Plunkett had requested this item and after a general discussion, question, and answer period among Councilmembers and staff, it was concluded that Mr. Bowman would do some research on the area mentioned and report to Mr. Plunkett by memo. DISCUSSION ON SURPLUS REAL PROPERTY Presented by: Duane Bowman, Development Services Director This agenda item was requested by Councilmember Petso. Mr. Bowman handed out some material from the Municipal Research & Services Center of Washington regarding Sale of Surplus City Property. Various City -owned buildings which could possibly be surplused were discussed. At the end of the discussion, an assignment was given to Mr. Snyder, City Attorney, and Mr. Bowman to put together a proposed policy regarding this issue. HOW DO WE MATCH OUR ORGANIZATIONAL STRUCTURE TO MEET FUTURE SERVICE DELIVERY NEEDS Presented by: Brent Hunter, Human Resources Director This agenda item was requested by Councilmember Wilson with Brent Hunter as the presenter. Mr. Hunter gave the staff and Council a handout that covered previous organizational structure, present organization structure, a comparative schedule of budget positions from 1997 to 2003, a General Fund outlook from 2002 to 2007, possible FTE reductions, a pie chart of the General Fund showing public safety at 119 %, fee -based at 23 %, utility support at 10 %, and all other at 59 %, projected staffing (FTE) 2003 -2012, ideas for future consideration, and a graph entitled "The Organizational Life Cycle ". Mr. Hunter discussed with staff and Council the ideas for future consideration as it related to contracting, special districts, consolidations, internal reorganization, labor agreements, and general issues. At the end of the discussion, Mr. Earling set up a future meeting with Mr. Hunter, the Mayor, Councilmember Wilson and himself to identify a process to begin looking at the City's organization structure. MAINTENANCE & OPERATION OF CITY BUILDINGS Presented by: Noel Miller Public Works Director, Noel Miller, started off his presentation by handing out information regarding Facilities Maintenance Issues. This information contained square footage figures of buildings in 1990 Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 6 compared to 2003 and stated that the amount of building square footage has increased 52% since 1990 but staffing levels have remained the same. He explained that because of last year's budget cuts the City will have to defer maintenance on buildings which in turn slowly allows the City's assets to deteriorate only to require a higher level of spending in later years. He explained that facilities maintenance expenditures in 2002 totaled $1,071,143. He felt that an increase was needed in the General Fund transfers to the Building Maintenance Fund 116 and forecasted a decrease transfer because of the City's poor financial outlook in future years. His handout contained a list of capital improvements projects and associated costs for 2003 to 2008. He spoke about the 1 st and 2nd quarter percent real estate excise tax (REET) as it related to purchase and improvement of park property. Due to the poor financial situation in which the City finds itself, a discussion ensued regarding possibly selling some of the buildings the City owns. After the staff answered Council questions, they were tasked with putting together a prioritization of building maintenance needs and bring it to both the Finance and Community /Development Services Department. Council President Earling adjourned the meeting at 1:55 p.m. Abbreviated, summary minutes were taken. Tapes are available in the City Clerk's Office. Cost of tape_ s: $2.00 per tape plus a $10 recording fee. G#AY H I EN ON, MAYOR SANDRA S. CHASE, CITY CLERK Edmonds City Council Retreat Approved Minutes February 7 and 8, 2003 Edmonds City Hall page 7 FRIDAY, FEBRUARY 7, 2003 fl SATURDAY, FEBRUARY 8, 2003 Time Subject Requested By Presenter 10:00 AM Welcome and Comments Marin/Wilson /Dawson Council President Earling 10:05 AM Long-Term Overview Mayor Haakenson 10:30 AM City's Financial Position and 3 -year Projection Dave Earling Peggy Hetzler 12 NOON Lunch (provided in 3rd floor kitchen) Sidewalks (residential grant funding) & Prioritization. Plunkett 12:30 PM Potential Revenue Streams Dawson/Wilson Mayor Haakenson Petso • Public Safety Levy Lid Lift • Chiefs Tomberg & Stern Lunch (provided in 3r floor kitchen) • Casinos • Police Chief Scott Smith 12:45 PM • Internet Initiative Wilson . Rick Jenness Future Service Delivery Needs? • Economic Development on Hwy 99 & Downtown • Duane Bowman • Funding Development Services Department • Duane Bowman - how we got here. • Funding Parks • Arvilla Ohlde • Fire Department Fees • Chief Tomber 5:30 PM Adjourn 10 yr.) plan revisited annually similar to budget 6:00 PM Dinner at brusseau's • Are we currently organized in the most efficient fl SATURDAY, FEBRUARY 8, 2003 Time Subject Requested By Presenter 9:00 AM 0 Growth Management Issues Marin/Wilson /Dawson Duane Bowman • Infill Policy to meet population goals. Duane Bowman • Discussion on Council role in land -use hearings. Duane Bowman 11:00 AM Sidewalks (residential grant funding) & Prioritization. Plunkett D. Bowman /N. Miller Discussion on Surplus Real Property Petso 12:00 PM Lunch (provided in 3r floor kitchen) 12:45 PM How do we Match our Organizational Structure to Meet Wilson • Brent Hunter Future Service Delivery Needs? • Explanation of our Current Organizational Structure - how we got here. • Forecasting future staffing needs - multiyear (5 yr., 10 yr.) plan revisited annually similar to budget • Are we currently organized in the most efficient manner to continue to provide exceptional public services to our citizens, or should we be studying other options considering future budgetary constraints staffing needs. 1:30 PM Maintenance & Operation of City Buildings Staff N. Miller 3:00 PM Adjourn d:mydocuments /wordata /Coundl Agendas /approved COUNCIL AGENDA 2003.doc