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03/10/1998 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES MARCH 10, 1998 The Special Edmonds City Council. meeting was called to order at 7:00 p.m. by Mayor Pro Tem Haakenson in the Library Plaza Room, 650 Main Street, followed by the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Pro Tem Dick Van Hollebeke, Council President Pro Tem John Nordquist, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember Thomas A. Miller, Councilmember ABSENT Barbara Fahey, Mayor Dave Earling, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Paul Mar, Community Services Director Art Housler, Administrative Services Director Noel Miller, Public Works Director James Walker, City Engineer -Ai-villa Ohlde, Parks and Recreation Director Stephen Koho, Wastewater Treatment Plant Mgr Doug Farmen, Accounting Manager Scott Snyder, City Attorney Sandy Chase, City Clerk Lynne Hann, Deputy City Clerk COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED. 2. CONSENT AGENDA ITEMS COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE CONSENT AGENDA. MOTION CARRIED. The agenda items approved are as follows: (A) ROLL CALL jApprove mutesm (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF MARCH 2, 1998 utes Approve (C) APPROVAL OF CLAIM WARRANTS #21432 THRU #23608 FOR THE WEEK OF Claim & MARCH 2, 1998, IN THE AMOUNT OF $189,011.98. APPROVAL OF PAYROLL Payroll WARRANTS #19718 THRU #19849 FOR THE PERIOD OF FEBRUARY 16 THRU Warrants FEBRUARY 28, 1998, IN THE AMOUNT OF $320,138.02 laim for (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM EDMONDS -SOUTH amages SNOHOMISH COUNTY HISTORICAL SOCIETY ($750.00) City Council Approved Minutes March 10, 1998 Page 1 1 ost Park (E) REPORT ON BIDS OPENED MARCH 2, 1998, FOR YOST PARK IMPROVEMENTS TO °l YOST PARK POOL AND AWARD OF CONTRACT TO MASTER POOLS ($45,388.77, Including Sales Tax) ewer and 3. SECOND HEARING ON PROPOSED INCREASE FOR SEWER AND STORMWATER UTILITY Stormwater RATES Utility Rates Mayor Pro Tem Haakenson explained this was the second public meeting before the Council and there had been at least two other public meetings /presentations by staff. He said staff had done an outstanding job of publicizing this meeting, including nine different notices in the newspaper, on cable, and postings. Community Services_ Director Paul Mar explained in addition to the advertising the proposed rates prior to the last Council public hearing, two open houses were held and a number of public service announcements have been made. Newspaper announcements, Chamber's Cable, and advertisements in all public buildings in the downtown area were used to advertise this hearing. There was also a front - page article in The Edmonds Paper regarding the proposed rates. Mr. Mar explained the increase in rates is necessary to cover expenses as required by the bond covenants. Residential users currently pay $18.10 per month ($36.20 bi- monthly); 15% of that amount covers stormwater services, the remaining 85% covers sanitary sewer services. Non - residential customers are billed monthly based on actual water consumption. The last increase in stormwater or sanitary sewer rates was in 1991; the Consumer Price Index has increased by 20% since that time. Further, revenues (wastewater flows) from King County (METRO) have decreased since the completion of the West Point Treatment Plant. The City's rates are also influenced by Lynnwood wastewater treatment costs, which have increased significantly, as a number of citizens have their sanitary sewer treated at the Lynnwood plant. Revenues are required to exceed expenditures by a minimum ratio of 1.25 in order to meet bond covenants. Over the past few years, ending cash balances have been used to cover those costs. Sanitary sewer rates for single family are proposed to be increased from $15.39 to $19.15. Multi- family rates will remain at $15.39 for 1998. Commercial customers will also experience an increase. Mr. Mar recalled the original proposal was to decrease multi- family rates from $15.39 to $14.75. Upon further analysis with staff, the consultant, and feedback from citizens, staff proposed to the Council in February that the rate remain at $15.39 for 1498. During the discussion at the February 17 Council meeting, a question was raised regarding whether the City could determine actual consumption. This can be done but would require collection of sufficient data for single family and multi - family customers during off -peak water consumption periods (at least two seasons) to develop a rate based on actual consumption. Mr. Mar displayed a chart illustrating single - family rates currently provides approximately 57% of revenue and multi - family rates provide 30 %. In the proposed rates, single family rates will provide 60% and multi - family will provide 25 %. He pointed out the efforts to maintain as much equity as possible. Mr. Mar explained the stormwater service the City provides has undergone a number of changes in the 1990's, primarily due to the Clean Water Act and other mandates imposed upon the City by the Department of Ecology and the Environmental Protection Agency. These mandates protect natural habitats and streams but also increase the cost of providing stormwater service. The stormwater service has been subsidized in the past by General Fund moneys. Under the current rates, the stormwater rate is calculated based on water consumption. Under the proposed method, impervious surface would be used to determine the charge. The equivalent of one average single family unit (3,000 square feet of impervious surface) will be used as the base. Single family residents will be charged a fixed rate of City Council Approved Minutes March 10, 1998 Page 2 $3.70 per month. Multi - family rates will be based on the actual measurement of impervious surface for the complex. Commercial rates will be based on the actual impervious surface and will be charged a multiple of the single - family unit, $3.70 per equivalent service unit (ESU). For example, if a commercial property has 30,000 square feet of impervious surface, their rate would be 10 times what a single family is charged. He displayed an aerial photograph of the Public Works facility, illustrating how the ESU would be calculated. Mr. Mar displayed a rate comparison of 14 other cities, noting even with the proposed increase in sanitary sewer rates, Edmonds' rate is lower than 13 of the 14 cities. With the proposed increase in stormwater rates, Edmonds' rate is lower than 8 of the 14 jurisdictions for both residential and commercial customers. In response to a request for a cost comparison on commercial rates, Mr. Mar displayed a comparison of commercial sanitary sewer rates, noting all are based on volume of consumption and many also have a minimum charge. Councilmember Nordquist recalled on February 17, the Council held its first public hearing that included a presentation of proposed rates. He noted the rate proposed at the February 17 public hearing for multi- family residential was $3.26 for 1908 and 1999; but has now been changed to $3.70 for 1998 and 1999. Mr. Mar clarified the $3.70 was for each ESU; there would be an average of $3.26 for multi - family users. He stressed $3.26 was an average, the actual rate would be based on the actual measured ESU for the complex. Councilmember Miller recalled a suggestion was made at the February 17 public hearing that the increased rates be implemented for a one -year trial period. Mr. Mar said the proposed rate increase is for 1998 and 1999. He pointed out sufficient data could not be collected to allow public hearings prior to 1999. Staff would prefer to have data from two seasons. Councilmember Miller said the Mayor's office received a letter requesting he and two other Councilmembers step down from the hearing process due to opinions expressed to the newspaper. Councilmember Miller explained this was a legislative process and he was therefore not obligated to step down. Further, when he made the motion to have a second hearing, he wanted to hear additional testimony as it may impact how the rates are established. Councilmember Plunkett asked Mr. Mar if staff intended to collect data over the next two years regarding the sanitary sewer consumption by single family and multi - family users and if the intent was to present this information to the Council. Mr. Mar said staff would collect the data and could make a presentation to the Council. Council President Pro Tem Van Hollebeke said a citizen telephoned him regarding stormwater charges for residents who were required to have a stormwater retention facility on residential properties. Mr. Mar explained recent mandates require residential and commercial developments of certain sizes to provide on -site detention and retention systems. The goal of these systems is to control the runoff into the City's drainage system; all detention systems on private property ultimately discharge to the City's system. Mayor Pro Tem Haakenson opened the public participation portion of the hearing. Eleanor Bonanno, 820 Walnut, Edmonds, expressed her appreciation for the second hearing. She said the proposed sewer rates were unfair to single family residents. She referred to sewer rates she proposed, City Council Approved Minutes March 10, 1998 Page 3 noting the increases total $3.76 for 1998 and $5.09 for 1999 for both single family and multi- family users, the same as staffs proposed increase. She pointed out the yearly increase for 1999 would be $70.44 for single family and $54.12 for multi - family. Staffs proposed increase would be $90 for single family and $33 for multi - family. She urged the Council to consider this information in their decision. Larry Menne, 22102 98th Avenue W, Edmonds, asked if sewer rates would be established based on water usage? Mr. Mar answered that would be the goal. Mr. Menne questioned why a two -year period to gather information was necessary when it was available on each citizen's water bill. Mayor Pro Tern Haakenson suggested Mr. Mar answer this question at the conclusion of public comment. Mr. Menne favored rates based on water usage. Finis Tupper, 711 Daley, Edmonds, recalled in 1980 a citizen (Bill Crow) addressed the rate differences between multi- family and single family. His investigation resulted in a change in the rates in 1985 to improve the equity between multi- family and single family rates. He questioned why the City was returning the disparity in rates. He said when the rates were changed in 1991, they were based upon the expenditure of $43 million on a secondary sewage treatment plant. Since that time, the bonds have been refunded and reissued at lower interest rates. He pointed out although the City did not increase rates, rates were never lowered in response to the lower interest rates. He objected to the comparison of Edmonds to Lynnwood as Lynnwood has a huge commercial base and huge impervious surfaces. He recalled grants were utilized in the past to make stormwater improvements and questioned if that was still being done. He agreed citizens would be shocked when they received their first bill. Al Rutledge, 7101 Lake Ballinger Way, Edmonds, pointed out the decrease in METRO revenue, $164,000 in 1994 and 1995. He pointed out the rate increase was not raised during an election year and alleged the Council knew it would be necessary. He referred to the increase in commercial rates. He questioned why funding was not available for Lake Ballinger. Anne Sola, 18500 High Street, Edmonds, agreed with the comments of the three preceding speakers. She questioned the increase in the stormwater fees, noting they have been paying stormwater fees since 1959 but are not receiving proper stormwater drainage. She said 700,000 gallons of water were pumped out of their corral last year. She recalled during her conversations with Hydraulics Engineer Don Fiene last year, he indicated the City would try to dQ something by spring or summer but it was not a high priority. Since that time Public Works Director Noel Miller and Mr. Fiene have discussed the situation with 8 -10 property owners but nothing has been done. She said there is nothing protecting the 13 homes in the area. During the last year three homes got the benefit of a new stormwater system free of charge, but they are still waiting. Nancy Swanson, Caspers Street, Edmonds, said when she first moved into her home (26 -27 years ago), there was no drainage problem. She explained her driveway was raised when the new road was put in on Caspers which caused water to drain onto her property. She said water problems are increasing in Edmonds, particularly where she lives. She objected to increased rates when nothing has been resolved. Roger Hertrich, 1020 Puget Drive, Edmonds, noted the advertising was effective in view of the number of citizens present. He said the sewer rates were unfair and rates based on consumption would be much fairer. He questioned whether residents with dry wells that recycle water into the ground should be charged as a contributor to the City's stormwater system. He pointed out there were areas in the stormwater rates that needed further consideration. He agreed the City knew of the shortfall and was concerned it was now being addressed as a crisis. He favored a short-term implementation of the rates City Council Approved Minutes March 10, 1998 Page 4 and urged the Council to "stay on top" of this. He pointed out the reduction in flow from King County should result in less personnel and operational costs for the sewer system as well as an extension in the life of the treatment plant. He urged the City to consider ways to reduce the cost of operation. Ray Albano, 20916 76th Avenue West, Edmonds, commented that he and others in the apartment complex he lives in are willing to pay their fair share and objected to those who blame multi- family. He pointed out any increases would be passed on to tenants. He said the rate should have been increased 2- 4% in 1991. Mayor Pro Tem Haakenson closed the public participation portion of the hearing. In response to Mr. Menne's concern regarding implementation of an actual rate for sanitary sewer, Mr. Mar agreed there is data in the system. He said to implement an actual rate, data collection as well as modification of the billing system would be necessary. The consultant and Administrative Services Director Art Housler have indicated this would take at least six months. :He pointed out multi - family residential rates likely would continue to be based on an average as most complexes have a single meter. In response to the suggestion that rates should have been reduced as a result of the lower interest rates, Mr. Mar explained part of the reason rates were not increased in 1995, 1996, and 1997 was the use of ending cash balances, some which was made up of the proceeds of the lower interest rate. Regarding a citizen with a dry well, the City's stormwater system also includes stormwater lines, catch basins and 130 miles of City streets. Even though a private resident may have a well on his/her property, they also use City streets that are part of the stormwater system. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, TO EXTEND THE HEARING FOR 15 MINUTES. MOTION CARRIED. With regard to the distribution between single family, multi - family, and commercial, Mr. Mar stated this could be refined further but the finer the refinement, the more complex the system is to manage. Councilmember Miller asked if Mr. Mar had an opportunity to review the rates proposed by Ms. Bonanno. Mr. Mar said he received her proposal this evening. Councilmember Miller recalled studies indicate multi - family units use approximately 30% less than single family. Mr. Mar clarified this was an average based on Edmonds - specific information. Councilmember Miller said the proposed rates for 1999 are 20% higher for single family than for multi - family. He observed Ms. Bonanno's suggestion was a 10% higher rate for single family over multi - family. He asked how the consultant's proposed rate structure was developed. Mr. Mar explained an increase in revenue requirements of approximately 17% was necessary in 1998 to cover expenditures. The rate increase for 1998 includes an overall increase to cover expenditures, which was redistributed based on equity of single family vs. multi-family. In 1999, as equity will already be established, all rates will be increased 14.5 %. Councilmember Miller referred to the suggestion that Public Works staff be more efficient and keep costs down. He recalled efforts that have been made to keep costs down. Mr. Mar agreed staff has made efforts to keep costs down including carefully considering any increases in staff. He noted much of the work done by the Public Works and Wastewater Treatment Plant staff is very labor intensive. Mayor Pro Tem Haakenson remanded the matter to Council for action. City Council Approved Minutes March 10, 1998 Page 5 Council President Pro Tem Van Hollebeke said no one wanted to raise the rates; however, it unfortunately is a necessity. He complimented staff on the extraordinary measures they have taken to involve the community and to educate them about concerns and potential solutions. He pointed out the ending cash balances have been used up and mandates require the City to perform to a certain standard. Further, the City's bonded indebtedness requires revenues to exceed expenditures by a minimum ratio of 1.25. He pointed out the 130 miles of streets and roads, 5,000 catch basins, and 250 miles of stormwater lines in the City that must be maintained. He, too, was concerned that the rates were fair and equitable, particularly to those most vulnerable. He requested staff come back to the Council one year after the rate increase takes affect to report their findings and that they make every effort to monitor usage. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, TO DIRECT THE CITY ATTORNEY TO DRAFT AN ORDINANCE INCREASING THE CITY OF EDMONDS SEWER AND STORMWATER RATES EFFECTIVE APRIL 1, 1998, AT THE RATES PROPOSED. Councilmember Nordquist compared this action to a performance review since 1991. He preferred a formula be in place so the processes of unequal rate increases are not necessary. He was disappointed a rate increase was necessary. Councilmember White pointed out the Council has considered this issue for several months and hired a consultant to study the issue. He was satisfied staff and the consultant have developed the minimum possible impact and an equitable plan. He pointed out all the issues raised tonight have been debated by the Council in the past. He expressed appreciation to those citizens who participated in the hearing process. He supported Council President Pro Tem Van Hollebeke's proposal. MOTION CARRIED, COUNCILMEMBER NORDQUIST OPPOSED. Adjourn to committee Mayor Pro Tem Haakenson adjourned the Council to committee meetings at 7:57 p.m. Meetings 'r BARBARA S. FAHEY, MAYOR SANDRA S.HAS , CITY CLERK City Council Approved Minutes March 10, 1998 Page 6 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. MARCH 10, 1998 FULL COUNCIL REVIEW (Large Plaza Meeting Room, Library Building, 650 Main Street) 7:00 P.M. — CALL TO ORDER FLAG SALUTE 1. 2. (A) (B) (C) (D) (E) 3. (45 Min.) APPROVAL OF AGENDA CONSENT AGENDA ITEMS ROLL CALL APPROVAL OF CITY COUNCIL MEETING MINUTES OF MARCH 2, 1998 APPROVAL OF CLAIM WARRANTS #21432 THRU #23608 FOR THE WEEK OF MARCH 2, 1998, IN THE AMOUNT OF $189,011.98. APPROVAL OF PAYROLL WARRANTS #19718 THRU #19849 FOR THE PERIOD OF FEBRUARY 16 THRU FEBRUARY 28, 1998, IN THE AMOUNT OF $320,138.02. ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM EDMONDS -SOUTH SNOHOMISH COUNTY. HISTORICAL SOCIETY ($750.00) , REPORT ON BIDS OPENED MARCH 2, 1998 FOR YOST PARK IMPROVEMENTS TO YOST PARK POOL AND AWARD OF CONTRACT TO MASTER POOLS ($45,388.77, Including Sales Tax) SECOND HEARING ON PROPOSED INCREASE FOR SEWER AND STORMWATER UTILITY RATES i ADJOURN TO COMMITTEE MEETINGS - - -- ..._._........----- ...................._..........._.-...........__...... .................._............ ......__......._.-_........_..........._..._........._....._................_....................._........._._............._............................_............._........__......_............................................................__.._......_.. ..........._................_._ .....__..... ................._.... __....... The three City Council committee meetings are work sessions for the City Council and staff only. The meetings are open to the public but are not public hearings. The City Council will meet separately as committees in different meeting rooms as indicated below. 4. PUBLIC SAFETY COMMITTEE (Small Plaza Meeting Room, Library Building, 650 Main Street) (A) IMPACT OF CLOSING CERTAIN DOWNTOWN STREETS FOR EVENTS (15 Min.) (B) EMERGENCY OPERATIONS PLAN AND ORDINANCE (20 Min.) (C) FIREWORKS DISCUSSION (20 Min.) .(D) REVISING VOLUNTEER FIREFIGHTER PROGRAM (15 Min.) (E) REPORT ON EMERGENCY MEDICAL SERVICES (10 Min.) (F) LEASE OF TWO 1998 HARLEY- DAVIDSON POLICE MOTORCYCLES FROM LYNNWOOD CYCLE BARN, INC. (10 Min.) (G) PURCHASE OF 1997 LEASED HARLEY - DAVIDSON POLICE MOTORCYCLES FROM LYNNWOOD CYCLE BARN, INC. (10 Min.) 1 1 C C EDMONDS CITY COUNCIL MEETING AGENDA MARCH 10, 1998 Page 2 of 2 5. COMMUNITY SERVICES COMMITTEE (Large Plaza Meeting Room, Library Building, 650 Main Street) (A) GYMNASTICS PROGRAM UPDATE (10 Min.) (B) DISCUSSION OF ARCHITECTURAL DESIGN BOARD ROLE (20 Min.) (C) REVENUE GENERATING IDEAS FOR THE TREATMENT PLANT (15 Min.) (D) IMPACT OF CLOSING CERTAIN DOWNTOWN STREETS FOR EVENTS (15 Min.) (E) WORK PLAN FOR SEWER CAPITAL IMPROVEMENTS FOR PERRINVILLE (15 Min.) 6. FINANCE COMMITTEE (Anderson Center, 700 Main Street, Room 113) (A) LEASE OF TWO 1998 HARLEY = DAVIDSON POLICE MOTORCYCLES FROM LYNNWOOD CYCLE BARN, INC. (10 Min.) (B) PURCHASE OF 1997 LEASED HARLEY - DAVIDSON POLICE MOTORCYCLES FROM LYNNWOOD CYCLE BARN, INC. (10 Min.) (C) REQUEST FOR FUNDING FROM ASCENT 21 (Addressing Snohomish County's Environment Now and Tomorrow for the 21St Century) (10 Min.) (D) REQUEST FOR PAYROLUACCOUNTS PAYABLE ACCOUNTING SERVICES FROM SNOCOM (15 Min.) (E) APPROVAL OF PETTY CASH EXPENDITURES FOR THE MONTH OF FEBRUARY 1998 (5 Min.) Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at 771 -0245 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. The meeting will be televised on Channel 32 the following Wednesday, Friday and Monday.at noon.