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01/26/1999 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES JANUARY 26, 1999 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Pro Tern Gary Haakenson in the Library Plaza. Room, 650 Main Street, followed by the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Pro Tern Dick Van Hollebeke, Council President Pro Tern Dave Earling, Councilmember John Nordquist, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember Thomas A. Miller, Councilmember ABSENT Barbara Fahey, Mayor STAFF PRESENT Robin Hickok, Police Chief Paul Mar, Community Services Director Peggy Hetzler, Administrative Services Director Noel Miller, Public Works Director James Walker, City Engineer Brent Hunter, Human Resources Director Doug Farmen, Accounting Manager Scott Snyder, City Attorney Sandy Chase, City Clerk Jeannie Dines, Recorder. 1. APPROVAL OF AGENDA COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE AGENDA AS PRESENTED. MOTION CARRIED. 2. CONSENT AGENDA ITEMS Councilmember Miller requested Item D be removed from the Consent Agenda. Councilmember Earling requested Item B be removed. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE REMAINDER OF THE CONSENT AGENDA ITEMS. MOTION CARRIED. The agenda items approved are as follows: (A) ROLL CALL . pprove (C) APPROVAL OF CLAIM WARRANTS #29307 THROUGH #30328 FOR THE WEEK OF laim JANUARY 18, 1999, IN THE AMOUNT OF $259,439.86. APPROVAL OF PAYROLL arrants WARRANTS #23123 THROUGH #23246 FOR THE PERIOD JANUARY 1 THROUGH JANUARY 15, 1999, IN THE AMOUNT OF $431,978.62 Reliable (E) REPORT ON PROPOSALS RECEIVED FOR 'ACCESS CONTROL, CCTV, AND Security Services DISTRESS ALARM SYSTEMS AND AWARD OF CONTRACT TO RELIABLE Contract SECURITY SERVICES ($39,889.55) Edmonds City Council Approved Minutes January 26, 1999 Page 1 lope (F) ,ACCEPTANCE OF SLOPE STABILIZATION EASEMENT FROM WILFRED AND bilization CAROLEE MAGRUDER cement pe bilization (G) ACCEPTANL�E OF SLOPE STABILIZATION EASEMENT FROM E. ROBERT cement GUSTAFSON Lease four Police Cars (H) AUTHORIZATION FOR MAYOR TO SIGN TWO -YEAR LEASE FOR TOUR (4) 1999 CROWN VICTORIA POLICE CARS Authorize to negotiate (1) AUTHORIZATION TO NEGOTIATE CONTRACT FOR PERRINVILLE LOCAL contract for IMPROVEMENT DISTRICT (LID) SANITARY SEWER IMPROVEMENTS DESIGN LID 215 PROJECT WITH CHS ENGINEERS, INC. Ord. 3239 re (J) ORDINANCE NO. 3239 AMENDING ORDINANCE 3110 AND THE LIST OF THOSE Council mtgs MEETINGS QUALIFYING FOR COUNCIL COMPENSATION OF CITY COUNCIL qualifying for MEMBER ATTENDANCE BY DELETING "MEETINGS OF THE CULTURAL ARTS compensation AND CONVENTION DISTRICT AND ADDING IN ITS PLACE THE CITY OF EDMONDS MEDICAL SELF INSURANCE ADVISORY COMMITTEE 3240 CDC (K) ORDINANCE NO. 3240 AMENDING ECDC SECTION 16.00.010, PURPOSES, TO 16.00.010 1 CLARIFY THE ZONING CODE'S INTENT TO FULFILL THE PURPOSES SET FORTH IN THE CITY'S COMPREHENSIVE PLAN Item B: Approval of City Council Meeting Minutes of January 19, 1999 F,,pp,ove Councilmember Earling explained he requested this item be removed from the Consent Agenda so that 9 mutes he could abstain from the vote due to his absence at the January 19 Council meeting. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, FOR APPROVAL OF CONSENT AGENDA ITEM B. MOTION CARRIED. The item approved is as follows: (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF JANUARY 19, 1999 pt on Gen. Item D: Report on General Fund Financial Position for the Year Ended December 31, 1999 Fund Councilmember Miller asked why utility taxes were under target and if there was a concern there would Financial be a shortfall in 1999. Administrative Services Director Peggy Hetzler said staff speculates the reason Position utility franchise taxes were under budget was related to the mild weather as all utility taxes were under budget. She indicates she has reviewed the 1999 revenue projections and, based on the 1999 actuals, it appears the 1999 projections may be somewhat overstated. She planned to provide an update on the 1999 revenue_ projections at the Council retreat. Councihmember Miller observed Other Taxes also decreased by approximately 10 percent. Accounting Manager Doug Farmen answered there are some gambling taxes in arrears, which comprised the majority of the Other Taxes category. The City likely will not be collecting as much in the future until the taxes in arrears are collected. COUNCILMEMBER MILLER MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE, FOR APPROVAL OF CONSENT AGENDA ITEM B. MOTION CARRIED. The item approved is as follows: (D) REPORT ON GENERAL FUND FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 1998 Edmonds City Council Approved Minutes January 26, 1999 Page 2 3. CONFIRMATION OF APPOINTMENTS TO BOARDS AND COMMISSIONS Board and Mayor Pro Tern Haakenson referred to the memo in the Council packet recommending reappointment of commission Marvene McGinness to the Cemetery Board; Jolyn Summy, Sandra Mehl, and Ellen Kahan to the Sister p01Rtr"ents City Board; and Lisa Raflo to the Architectural Design Board. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, TO CONFIRM THE APPOINTMENTS OF MARVENE MCGINNESS TO THE CEMETERY BOARD; JOLYN SUMMY, SANDRA MEHL, AND ELLEN KAHAN TO THE SISTER CITY BOARD; AND LISA RAFLO TO THE ARCHITECTURAL DESIGN BOARD. MOTION CARRIED. . 4. CONTINUED DISCUSSION OF PROPOSED UNDERGROUND PARKING GARAGE Underground Community Services Director Paul Mar advised this item is a continued discussion of last week's Parking presentation on the proposed underground parking garage at the Public Safety complex. His Garage understanding was the Council wished to resolve as many of the questions raised last week as possible. During the past week, staff has sought to gather this information including speaking with experts and consultants. He distributed and reviewed questions the Council raised at the January 19 meeting. Feasibility Has it been proven that this is the best location for the garage? Mr. Mar explained by considering available sites (without demolishing buildings or acquiring properties .that currently have an economic use), this is the only site other than possibly in the southwest portion of downtown. He said an in -depth study had not been done to determine the best location. Has a traffic impact analysis been done for this garage? Mr. Mar said no traffic study has been done specifically for the garage.. However, as part of the design of the Public Safety complex, a traffic impact study was done. It is staff s intent, if the parking garage project moves forward, to update the traffic study as part of the due diligence or upon initiating the design for the project. Has the Police Department commented on any security concerns related to the garage location? Mr. Mar said neither the Fire Department nor,the Police.Department have reviewed the latest version of the proposal. However, the entrance to the garage is as far away as possible from the Fire and Police Department's entrance. He said their written input would be sought during the due diligence process. Costs How firm are the construction cost numbers? Mr. Mar said the cost estimates presented last week were based on estimates done by the Public Safety project architect and their cost estimator and augmented by Wiggins Construction Company. He said as part of the feasibility study, a site specific cost estimate would be done. Have maintenance, operating and enforcement costs been projected? Mr. Mar said no project specific costs have been projected to date. These'will be provided as part of the due diligence process. LID . Is the intent of the LID to set a fixed dollar amount of annual contribution —say the 20 percent as proposed? Mr. Mar said the intent is, if possible, as property values increase in the future, to put the additional moneys collected toward this project either to retire the debt early or fund some of the more Edmonds City Council Approved Minutes January 26, 1999 Page 3 1 uncertain portions of the funding mechanisms. He said the rules and regulations regarding LIDS would be described in more detail by Administrative Services Director Peggy Hetzler and City Attorney Scott Snyder. �t Financing In lieu assumptions: The in -lieu parking fund's annual contribution of $33,000 is a concern. Who is responsible for the $35,000, or portion thereof, if the in- lieu -of- parking cannot meet this amount annually? Is it the City's responsibility? What happens to the in-lieu-of-parking contribution after the fifth year? How long has the in- lieu -of- parking fund been in place? Has it been used for anything? Mr. Mar said as part of the due diligence process, staff will provide an assessment of the assumptions made by the Downtown Parking Advisory Committee regarding the in- lieu -of- parking fund. Has the $14,500 annual contribution from the two colleges been ascertained? Mr. Mar said firmer commitments will be obtained from the Foundation and the Christian College as part of the due diligence action. Process /Implementation What is the timeline for hiring a consultant to do the feasibility study? Mr. Mar said if Council authorized staff to proceed tonight, a scope of work would be developed, as well as a timeline for completion, of the feasibility study, and quotes requested from consultants on the City's roster. It is hoped a consultant could be hired within the next two weeks. What is the threshold for using the consultant roster? Mr. Mar said the maximum fee to enable the City to hire a consultant from the roster is $15,000. How quickly can we get the feasibility study done? Mr. Mar said it could possibly be completed by the end of February. It will take approximately one month. Are we required to hold a public hearing on the garage? Mr. Mar said public hearings will be required if the City chooses to finance the garage. There are also public hearings for the formation of an LID. During the design phase, staff will also meet with the residents who will be impacted by the project as well as making periodic presentations to the City Council. What is the drop -dead date for starting construction on the garage? Mr. Mar said the City Attorney advised the parking garage and Public Safety projects must be kept separate. A more important issue is sequencing of events to avoid having two contractors on site at the same time. He pointed out if the Council moves forward with the garage, it may further inconvenience the function of the fire, police and court operations due to access to the site. Can you tell us by 1126 if we can fulfill the intent of the motion? Mr. Mar said this would be determined by Council's discussion/decision tonight. Councilmember White pointed out the question regarding security concerns was not related to conflict with ingress /egress but what may take place in the garage. He said the Fire Department has similar concerns with the dangers of a fire in an enclosed space. Councilmember White said those concerns will be addressed at the next Public Safety Committee meeting. Edmonds City Council Approved Minutes January 26, 1999 Page 4 For Councilmember White, Mr. Mar explained the subcommittee reported there has been an acknowledgment regarding the annual contribution from the two colleges but a firm, written commitment will be obtained during the due diligence effort. Councilmember White asked when would the contractor need to be told to incorporate the garage into the project. City Attorney Scott Snyder answered public bid laws permit some latitude for public agencies to do change orders but it is.restricted to emergencies and changes in site conditions related to the original scope of the bid project. In this instance, the project as bid did not include a parking garage and adding a $1.4 million public project outside the scope of the original bid would violate the public bid laws and a separate public bidding process is required. He said there may be some change orders required to prevent the installation of landscaping that would later need to be removed. Councilmember White asked if the garage could be built after the other facility was complete. Mr. Mar answered if this project moves forward, the City will need to request a deductive change order for the current project to eliminate the landscaping /surface parking lot along the 5' Avenue frontage until the underground garage is built. This needs to be done soon enough to prevent the contractor from purchasing the materials for that portion of the project. He said an estimate of the date would be provided as part of the due diligence process. Councilmember Plunkett asked if construction of the garage could take place up to a year from now. Mr. Mar said yes, but pointed out a critical issue is the potential impacts on the functionality of the fire, police, .and court operations that were components of the voter - approved bond issue. If the site is left unfinished, landscaping, parking, finalization of the entry will not be in place until the construction of the garage is complete. Councilmember Earling asked if the feasibility study will assist in determining whether this is a good location for a parking garage. Mr. Snyder answered maybe, pointing out one of the critical steps will be to have an appraiser review the benefit.(increase in value to the properties within the central business core who will be served by the parking garage) to ensure the garage will sustain the benefit assessment. The report the subcommittee provided assumed the benefit would be level for all businesses in the downtown area, but typically parking garages have a "bull's- eye," a. convenience factor for users further away from the garage. He said having an appraiser determine whether all businesses would get the same benefit is essential because the City cannot assess more than the increase in property value that a business receives. As the City will retain the in- lieu -of - parking fund and a property owner who develops their property will have to pay into the fund or provide their own parking, there is no increase in benefit as a development potential. He summarized the appraisal regarding property values will provide some infonnation that can be used to determine whether this is the best location. Councilmember Earling asked whether it was assumed everyone's contribution would increase if the actual cost of the garage was higher than $1.4 million. Karen Wiggins, Downtown Parking Advisory Committee Chair, answered the subcommittee would need to go back to the contributors for an increase. Councilmember Earling clarified the City would not be expected to pay the difference between the estimated cost and the actual cost. Councilmember Earling observed the Bible College has agreed to $5,000 and the subcommittee is negotiating with the Foundation. He asked when these groups must commit to a contribution. Mr. Mar answered once a feasibility study and appraisal is done, enough information will be available to present to contributors. Edmonds City Council Approved Minutes January 26, 1999 Page 5 1 Councilmember Earling asked if the assumption was that two in- lieu -of- parking stalls would be sold per year to generate the funds for the contribution from the in- lieu -of- parking fund. Mr. Mar answered if the fee is raised to $8,000 per stall, then the sale of nine spaces over the next five years plus the $80,000 balance in the in- lieu =of- parking fund would cover their contribution. He said staff will review the assumptions made by the subcommittee regarding the in- lieu -of- parking fund. Mr. Snyder pointed out since all the stalls may be sold in one year, the City can protect itself against shortfalls by making interfund loans /transfers between funds. For ' Councilmember Earling, Mr. Mar explained once more details regarding the parking garage are available, staff will hold public meetings with the neighbors to seek their input. He noted in the past notification has included direct mailing. Council President Pro Tem Van Hollebeke recalled former Mayor Harrison proposed the potential use of a site at 2' and James. He asked if staff had considered the feasibility of that site. Mr. Mar answered no. Council President Pro Tem Van Hollebeke asked if the Police or Fire Chief was aware of any fatal flaws with the parking garage and if cameras would assist in addressing some of their concerns. Mr. Mar said the question regarding security, as phrased by Councilmember White, has not yet been raised with the Fire or Police Departments but will be in the near future. Council President Pro Tem Van Hollebeke observed Merritt+Pardini had considered the garage's feasibility using standard bid formulas to develop the $1.4 million estimate. He asked if there was any reason to believe there were issues that could raise the cost substantially. Mr. Mar answered there has, not been any soils boring or testing on that portion of the site because there originally was no intent to place a building in that location. As part of the project currently underway, some utilities were located in that area. The cost to relocate any utilities must be considered and included in the cost of the project. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO EXTEND DISCUSSION OF THIS AGENDA ITEM FOR 15 MINUTES. MOTION CARRIED. Council President Pro Tem Van Hollebeke said the financing is his biggest concern. He observed there had not been any firm commitments although some groups have indicated they are supportive but have not entered into a contract. He asked if the only way to facilitate the financing was for the Council to move forward. Mr. Mar said more investigation regarding the project needs to be done. Once all the information is available, it would be appropriate to request a firm commitment from the Bible College and the Floral Center. Council President Pro Tem Van Hollebeke asked how much delay is anticipated between the completion of the Public Safety complex and the parking garage (if the Council moved forward with the process tonight). Mr. Mar answered approximately one year. As a former landscaper, Council President Pro Tem Van Hollebeke pointed out adds /deducts can be a way for contractors to make money. He inquired about the cost of the landscaping portion of the Public Safety contract. Mr. Mar answered under the public works law, it is a lump sum bid, a non- negotiated bid and the City accepts the lowest responsive bidder. Council President Pro Tem Van Hollebeke asked if it would be preferable to negotiate a delay in the landscaping rather than a deduct. Mr. Mar answered a delay would not be advisable due to the City Attorney's advice to keep the contracts separate. Edmonds City Council Approved Minutes January 26, 1999 Page 6 Mr. Snyder explained a Local Improvement District (LID) is not a tax. When an entity builds a public improvement, it may assess the cost-against property owners who benefit from the project. The amount the City can assess is based on the increase in property values of the property. Thus, an appraisal is very important because it will help the City assess 1) the proper boundaries of the district, 2) method of assessments, and 3) total amount of benefit property owners will receive to determine if the estimates made were valid. Mr. Snyder explained after the Council establishes a preliminary assessment roll by resolution to form the district, any property owner can appeal the method of assessment and the amount of the assessment. He stressed an LID is not a legislative function of the Council; it cannot be negotiated and it is not a political decision. Assuming the appraisal is high enough, by forming the district and finalizing it after the project is complete, the City can assure that 20 percent of the financing is covered. Councilmember Nordquist recalled in the past there were latecomers fees for new development within an LID. He asked how this would be handled with this LID. Mr. Snyder said because a portion of the financing will come from the in- lieu -of- parking fund, he assumed the fund would remain in effect. Therefore, a property that redevelops must still pay an in- lieu -of- parking fee or construct parking and Will not get a benefit from the parking garage for future development. The benefit they would receive is more readily available parking. Councilmember White asked how the LID boundaries are established. Mr. Snyder answered by petition or resolution. In the past the Council has used a hybrid version; a group of property owners submits a petition which the Council approves by resolution to speed up the process. When property owners are notified of the intent to form an LID, the notice is required to contain a description of the project, the boundaries of the district, the method of assessment, the estimated cost of the project, and the estimated assessment for each property. If A sufficient number protest (60 percent of the value of the properties comprising the assessment), the City can lose its ability to assess an LID. Any protest must be filed prior to the first hearing regarding formation of the district. After the district is established, typically the project would be constructed and the City finalizes the assessment by ordinance at a hearing. During the second phase, a property owner can appeal the size of the assessment and its applicability to them. COUNCILMEMBER MILLER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO EXTEND DISCUSSION OF THIS ITEM FOR 10 MINUTES. MOTION CARRIED. Councilmember Plunkett asked if the work done by the subcommittee on the LID and the signatures they have gathered were. of any value. Mr. Snyder answered they provide a read on the position of the property owners and it is also in keeping with the way the City has established LIDs in the past. For example, for the LID in Perrinville, signatures were gathered to determine how the residents felt about the LID and the City initiated the LID by resolution. Administrative Services Director Peggy Hetzler said she spoke with the City's bond counsel, Lee Vorhees, regarding the structure of the LID. When she described the proposed funding sources to service the debt, Mr. Vorhees' analysis was that this would be a complex structure for an LID. Further, the City's obligation was unknown until the assessment is done because the LID can only be established in the amount of benefit property owners receive. He stressed the appraisal was the first step to establish. the district and determine the amount of benefit that can be assessed against the property owners. As a result, she questioned how the City's contribution could be firmly established at this time. Councilmember Earling asked if the City would be in danger of paying higher interest rate due to the diversity of funding sources rather than a stable tax base. Ms. Hetzler offered to find out that information. Edmonds City Council Approved Minutes January 26, 1999 Page 7 Mr.. Mar distributed the timetable for the parking garage, noting this was his best guess of the start/end dates for each task and areas where funds will be required. He explained the due diligence task will include the pre- design engineer /cost study, appraising LID valuation and benefits, verifying financing assumptions, and determining O &M costs. He said these due diligence tasks were the essence of Councilmember Miller's motion last week. Optimistically, these tasks can be completed, with possibly the exception of the appraisal, within one month. Following the due diligence process, the design, formation of the LID and financing, and administrative tasks will take place. He said the best guess regarding the move -in date for the Public Safety project is the first week of July. Independent of the garage project, the intent was then to demolish the current Community Services Building and the remainder of the Public Safety Building, and do the landscaping and surface parking this fall. Under the existing schedule, that portion of the project would be complete in September /October 1999. If the parking garage proceeds on the proposed schedule, construction could begin this fall and be completed within one year. He pointed out the tasks under the design process were the same as any applicant with a project in the City would be required to follow; the City as an applicant, would be subject to the same process. Councilmember Earling asked when the specific dollar amount for each task could be established. Mr. Mar explained the due diligence tasks were estimated at $20,000 - $30,000. Councilmember Earling requested staff establish firm dollar amounts for as many tasks as possible by March 1, 1999. Mr. Mar said specific dollar amounts would be established for as many of the tasks as possible during the due diligence process. Councilmember Plunkett asked if some of the funding required for the tasks listed on the timetable would be included in the overall cost of the parking garage. Mr., Mar answered when the due diligence study is completed, a more accurate total cost of the garage will be established. Councilmember Plunkett asked if the cost of the due diligence tasks was separate from the $1.4 million estimate. Mr. Mar said it was included. Mr. Snyder said all the money except the deductive change order would qualify. Mr. Mar said although the bid was a lump sum, a schedule of values was provided which includes a dollar amount for all landscaping and grading in the project. He pointed out deductive change orders typically are not the bid amount. Further, the lid on the top of the garage would need to be reconstructed and it would need to be determined how much of that cost should be funded by each project. Councilmember Miller observed if the Council decided to move forward, the services of an appraiser would be engaged to determine if this was the correct site and if sufficient benefit existed for an LID. Mr. Mar agreed. Councilmember Miller asked if the appraiser could be hired for less than the $15,000 threshold. Mr. Mar said staff will attempt to determine that by contacting some appraisers. Councilmember Miller asked if it was appropriate to use moneys from the in- lieu- of- parking'fund for the appraisal. Mr. Snyder answered yes. Councilmember Plunkett thanked Mr. Mar for the information he provided in a short period of time between Council meetings. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER EARLING, THAT THE COUNCIL AUTHORIZE STAFF TO PROCEED WITH THE NECESSARY STEPS TO INITIATE THE DUE DILIGENCE PROCESS FOR THE UNDERGROUND PARKING GARAGE WITH THE PROVISION THAT ALL COSTS BE CLEARLY SEPARATED FROM THE PUBLIC SAFETY COMPLEX WITH FUNDING FROM THE COUNCIL CONTINGENCY FUND. Edmonds City Council Approved Minutes January 26, 1999 Page 8 Councilmember Earling asked the current status of the Council, Contingency fund. Mayor Pro Tern Haakenson answered it was lower than it was anticipated to be due to labor settlements. COUNCILMEMBER EARLING WITHDREW HIS SECOND. MOTION DIED FOR LACK OF A SECOND. COUNCILMEMBER MILLER MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE, THAT THE COUNCIL AUTHORIZE STAFF TO PROCEED WITH THE NECESSARY STEPS TO .INITIATE THE DUE DILIGENCE PROCESS FOR THE UNDERGROUND PARKING GARAGE WITH THE PROVISION THAT ALL COSTS BE CLEARLY SEPARATED FROM THE PUBLIC SAFETY COMPLEX AND PAID FOR FROM THE IN- LIEU -OF- PARKING FUND. MOTION CARRIED. 5. PRESENTATION ON ENDANGERED SPECIES ACT / SALMON LISTING Endangered Community . Services Director Paul Mar explained Mayor Fahey and several staff members have been Species Act - working on the Endangered Species Act (ESA) Salmon Recovery Strategy. In Snohomish County, the Salmon Listing City of Everett has taken the lead and has helped Edmonds and other local jurisdictions in the county in addressing the implications of the ESA and assisting in the development of an action strategy. He said the Council packet included Everett's response to the ESA compliance as well as Edmonds response to the state's first draft of the Salmon Recovery Strategy. Doug Levy, Government Affairs Director, City of Everett, explained on or about March 9, it is likely the threatened listing under the ESA will be announced for certain strains of Chinook Salmon in a 12 -13 county area. He said this listing will have regulation, statutory, regional, and federal impacts. The listing will have a significant impact on actions in watersheds. Local governments will have most control over habitat (which is one of the four H's - harvest, hatchery, and hydropower). He said his presentation would outline the state's strategy document, "Extinction is Not an Option" and would focus on GMA, shorelines, stormwater programs, water, and water quality issues as these are the areas the National Marine Fisheries Services (NMFS), the federal agency that has jurisdiction over the salmon listing, will want to know local government's responses on. Mr. Levy displayed impacts-on GMA, Shorelines, and Critical Areas, explaining the Salmon Strategy includes. requirements for updating all Shoreline Plans by September 1, 2002 (as well as pending legislation for updating Shoreline Plans every five years thereafter), updating critical areas by September 1, 2002, using "Best Available Science" in updates. He summarized that through the State Salmon Strategy and pending legislation, it is likely cities will be asked to do a number of tasks regarding shorelines and critical areas. Governor Locke proposes $4.2 million for shoreline and critical area updates statewide; Mr. Levy believed this would not be sufficient. For example, the City of Everett is estimating $200,000 - $300,000 in costs and depending on additional requirements, it could be as high as $1 million. Mr. Levy explained another major issue will be stormwater and road projects that will need stormwater or retention /detention facilities. The Salmon Strategy has pointed out that only about one -third of the jurisdictions in.the state have stormwater programs in place; therefore, one of the requirements is for local governments to update or adopt stormwater management programs. The state's budget includes $680;000 for the Department of Ecology (DOE) to update its stormwater manual..'He explained the Salmon Strategy. also addresses "Best Management Practices" that would be required for Edmonds City Council Approved Minutes January 26, 1999 Page 9 retention/detention. In addition to altering road construction standards, the Salmon Strategy addresses "car culture" and how to get people to use alternative transportation. Local government will deal with DOE and their stormwater manual as well as the State Department of Fish and Wildlife when doing projects that require hydrologic permits. For example, Lynnwood has resisted requests from the Department of Fish and Wildlife for retrofitting as part of the Edmonds /Lynnwood's Highway 99 project, which would add $4 - $5 million to that project. Everett estimates stormwater treatment plans, operating, and capital costs would costs tens of millions of dollars. The State Department of Transportation (DOT) is impacted by this requirement and they estimate the cost to be approximately 25 percent or more in road construction costs. Mr. Levy noted this would have carryover into other areas such as the transportation package the Legislature is considering in that the list of projects may be minimized by the additional costs. Governor Locke recognizes there will need to be additional funding sources for additional stormwater costs. Governor Locke recommended in his budget that the State Transportation Improvement Board administer a grant program in the amount of $11.8 million and that DOT grant funding be allocated. Mr. Levy said more dialogue is necessary regarding the return on investment in highly urbanized areas before the recommendations in the stormwater strategy such as additional updates and retrofitting, are automatically. undertaken and funding provided. He said the Salmon Strategy does little to address potential costs to businesses such as reducing surface parking/impervious areas and there will need to be feedback from the business community regarding the costs they will incur. The impact on the business community will become evident via DOE processes and Legislative oversight hearings. Mr. Levy displayed the impacts the Salmon Strategy will have on water, water quality, and wastewater, and explained the budget implications. He explained a great deal of the state's proposed budget and allocation of FTE is concentrated in this area. The state has also committed funds to Watershed Planning grants although one problem with the watershed planning focus is that three of the largest watershed basins with the highest populations in the state (Snohomish, Cedar, and Puyallup) are not operating under the State's Watershed Statute, therefore, this watershed planning is not taking place. He said the state strategy and budget addresses inventorying of where fish passage may be blocked and what may be needed to replace /retrofit culverts. He said this will impact urban areas and is an area where urban areas have a legitimate responsibility. He said Everett's rough cost estimate for replacing /retrofitting fish migration culverts is $3.5 million and retrofitting culverts that cross transmission line corridors is $1.5 - $3 million. He reiterated the state's budget did not include sufficient funding for such projects. Mr. Levy said another of the state's focuses is enforcement. The NMFS has stated once the listing is in place and jurisdictions are responding to the ESA, they want to see certainty, monitoring, and default actions to ensure accountability. The Salmon Strategy includes language regarding compliance with existing laws and additional FTE's have been devoted to enforcement. He expressed concern that the Salmon Strategy addressed enforcement of streams, construction sites, and infrastructure projects as well as funding and policy links to local government enforcement but most local governments do not have funds to do the enforcement envisioned in the state strategy. For example, the City of Seattle (population approximately equivalent to Snohomish County) recently doubled their enforcement staff from two to four. Mr. Levy commended Governor Locke for recognizing the ESA is a serious matter and real action and funding is necessary and has suggested a $200 million commitment to address it. He said half of the funds in the Governor's biannual budget proposal anticipates an initiative by Washington, Oregon, Edmonds City Council Approved Minutes January 26, 1999 Page 10 Alaska, and Northern California to obtain $200 million per year (cumulatively) in funding to assure the ESA will be successful, and assuming it is, devotes $80 million toward local government projects. He said there is some skepticism that the $200 million will be provided which will greatly impact the state's level of commitment to local government. The state is committing $50.1 million from the General Fund. He pointed out the state is doing a fiscal impact analysis of the Salmon Strategy and the state's response to the ESA. Everett has provided information to the State Department of Community Trade and Economic Development regarding identifiable costs as well as factors that will impact costs such as land value, how much land is available, LIDs, takings challenges, appeals, and potential liability on issuing permits under GMA, and what impacts will be on rates. Mr. Levy summarized local jurisdictions need to assess their own situation; for Edmonds, shorelines may be a big issue. Everett has considered upcoming capital projects as well as day -to -day operations in the City and how they may be impacted. In an effort to show good faith to the NMFS, Everett has attempted to identify what they can do in the first 6 -12 months. He said much of the early action will be done by the Tri- County/Four City Group (comprised of Snohomish, King and Pierce Counties and Seattle, Tacoma, Everett and Bellevue) who will then describe the early action ideas to other cities in each county. He encouraged the City to be involved in discussions with the Tri - County group, watersheds, the AWC's Advisory Group on the ESA, and /or the State's Government Council on Natural Resources. He suggested the City consider a team concept with other jurisdictions to address legal, transportation, land use, parks and recreation, utilities, and other issues. He said Everett's Mayor has directed him to work with other cities and share information. Councilmember Earling requested staff provide on an upcoming agenda (within 60 days) the anticipated, projects, costs, and challenges the City will be facing and potential grant sources the City can avail themselves of. Council President Pro Tem. Van Hollebeke asked if there was any federal funding. Mr. Levy answered there has been a lot of discussion at the Congressional level, noting it was helpful to contact them. He said the weakness in federal funding efforts is that much of it is directed toward projects. Although there will be projects necessary to protect/restore /acquire habitat, much of the cost will be for programmatic issues rather than projects. He explained once the threatened listing is announced, the NMFS must write a rule on how they will enforce /administer activities, which is known as a "4d rule." He said the NMFS has options in writing the 4d rule such as a rule that takes affect quickly or more gradually. Councilmember White asked about Edmond's percentage of the Highway 99 project Mr. Levy referred to. City Engineer Jim Walker answered retrofitting was only suggested in the second and third phases, which are in Lynnwood and Snohomish County. There were no Hydrologic Project Applications in the first phase, which Edmonds was involved in, as there were no designated stream crossings on Highway 99 in that section. Mr. Mar displayed a map of the streams, creeks, and shoreline in Edmonds, illustrating the listing will have an impact on the entire City. He said staff is developing a tentative work program and will make every effort to, present information to the Council by March. He advised the January 27 Snohomish County Tomorrow Steering Committee meeting will include a panel discussion by the Tri - County group and other experts regarding the salmon listing. Mayor Pro Tem Haakenson requested staff provide the Council a copy of the map of streams, creeks, and shoreline in Edmonds. Councilmember Earling thanked Mr. Levy, noting he has great respect for the work he has done. Edmonds City Council Approved Minutes January 26, 1999 Page 11 6. UPDATE ON SELF - INSURANCE HEALTH BENEFIT FUND ate on Human Resources Director Brent Hunter displayed a graph illustrating revenue, stop loss, administrative, claims, and the balance for the Self- Insurance Health Plan. During the first quarter of this planning year ranee t (October - December, 1998), Mr. Hunter explained the plan has recovered from some of the bleakness alh e lenefit Fund experienced in the first year. He reviewed administrative costs for the fund which includes the consultant, claims administration, newsletter, and wellness screening. He reviewed moneys the fund received from Safeco via the Stop Loss Insurance, noting last year was a bad year and the fund received a lot of money from Safeco. During the first planning quarter of this year, a carryover of some money was received from Safeco in October and approximately $28,000 will be received in January. It is hoped no further funds from the stop loss insurance will be necessary. Mr. Hunter reviewed the revenue source (premiums), noting the increase in October was due to the 13 percent rate increase. He reviewed claims, noting occasional spikes are to be expected. He reported claims have decreased during the last quarter and are at the lowest point in the past year, significantly lower than the average for the year. He said the fund has not yet experienced the cost savings that are anticipated by changing to the Regence Network so claims in January likely will be reduced further. At this time, January appears to be lower than December. He reviewed the cash flow history, noting as of the end of December, the balance is $165,000 and it is anticipated the balance will be over $200,000 by the end of January. He explained the state's risk managers recommend the health plan have $240,000 in reserve. If the current trend continues, the balance will reach that level shortly. He said the LEOFFl continues last year's trend; in the first quarter there is,over $22,000 in the fund. If that trend continues, one of the strategies considered is using some of this money for long term care. Mr. Hunter said the only problem the City has experienced with the Self- Insurance Health Plan was a billing problem when the change was made to Regence Network, which is being resolved. New identification cards are being mailed to employees' home addresses along with an explanation of the change. 7. MAYOR'S REPORT noCotn/ edic 7 Mayor Pro Tem Haakenson reported he was elected chair of the SnoCom /Medic 7 Board for 1999. card 8. INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS Aquatic . Council President Pro Tem Van Hollebeke reported a public meeting regarding the aquatic center will be Center held on February 4 at 6:30 p.m. in the Library Plaza Room. He invited the public to attend and provide ublic Mtg input both pro and con. Discussion will include what would be included in an aquatic center and available funding options. He reported that the joint venture between the YMCA and Stevens Hospital for a recreational center, which would include a swim facility, has been tabled. Funding for Councilmember Earling reported he was in Washington DC for Community Transit last week. He met Transit with Senators Gordon and Murray and Congressmen Inslee and Metcalf to seek funding for transit Programs programs. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER MILLER, TO EXCUSE COUNCILMEMBER EARLING FROM THE JANUARY 19 COUNCIL MEETING. MOTION CARRIED, COUNCILMEMBER EARLING ABSTAINED. Edmonds City Council Approved Minutes January 26, 1999 Page 12 Councilmember Plunkett reported Port Commissioners agreed to assist in.the funding of a planner for the tWell for Town of Woodwa for future development of Pt. Wells as most options for development of the site will t. Wells Y P P P Danner involve the Port. The Port will also be considering the interim or long -term (depending on the development of the multimodal project) uses of the Unocal dock. The Port believes it is in their best interest to determine the condition of the dock before considering possible uses and/or repairs to the dock for pedestrian or light vehicle traffic, fishing, and general public use. Health Councilmember Nordquist reported Everett Councilmember Bob Overstreet was elected chair at the ;strict Health District's meeting. The Health District will hold their retreat in March. Issues the Health District Meeting is addressing include the increase in TB in Snohomish County and actively enforcing tobacco signage. Parking Councilmember Miller thanked Mr. Mar and staff for their response to the underground parking garage Garage; issue. He reported the Professional Consultant Selection Committee met last week and selected CHS xs Engrs. Engineers for the sanitary sewer improvement design project in Perrinville. He said citizens will be well served by this firm and they plan to keep the Council informed of their progress. hange to Observing there was little scheduled on the February 2 agenda, Councilmember White requested the /2/99 update on the Highway 99 project and the update on the Public Safety complex, originally scheduled as Agenda Consent Agenda items, be added to the agenda for a five- minute presentation each. With no further business, the Council meeting was adjourned at 9:15 p.m. BARBARA S. FAH Y, MAJOR SANDRA S. CHASE, CITY CLERK 0 Edmonds City Council Approved Minutes January 26, 1999 Page 13 . 1 1 I T AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 o.m. JANUARY 26, 1999 7:00 P.M. - CALL TO ORDER FLAG SALUTE 1. APPROVAL OF AGENDA 2. CONSENT AGENDA ITEMS (A) ROLL CALL (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF JANUARY 19, 1999 (C) APPROVAL OF CLAIM WARRANTS #29307 THROUGH #30328 FOR THE WEEK OF JANUARY 18, 1999, IN THE AMOUNT OF $259,439.86. APPROVAL OF PAYROLL WARRANTS #23123 THROUGH #23246 FOR THE PERIOD JANUARY 1 THROUGH JANUARY 15, 1999, IN THE AMOUNT OF $431,978.62. (D) REPORT ON GENERAL FUND FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 1998 (E) REPORT ON PROPOSALS RECEIVED FOR ACCESS CONTROL, CCTV, AND DISTRESS ALARM SYSTEMS AND AWARD OF CONTRACT TO RELIABLE SECURITY SERVICES ($39,889.55) (F) ACCEPTANCE OF SLOPE STABILIZATION EASEMENT FROM WILFRED AND CAROLEE MAGRUDER (G) ACCEPTANCE OF SLOPE STABILIZATION EASEMENT FROM E. ROBERT GUSTAFSON (H) AUTHORIZATION FOR MAYOR TO SIGN TWO -YEAR LEASE FOR FOUR (4) 1999 CROWN VICTORIA POLICE CARS AUTHORIZATION TO NEGOTIATE CONTRACT FOR PERRINVILLE LOCAL IMPROVEMENT DISTRICT (LID) SANITARY SEWER IMPROVEMENTS DESIGN PROJECT WITH CHS ENGINEERS, INC. (J) PROPOSED ORDINANCE AMENDING ORDINANCE 3110 AND THE LIST OF THOSE MEETINGS QUALIFYING FOR COUNCIL COMPENSATION OF CITY COUNCIL MEMBER ATTENDANCE BY DELETING MEETINGS OF THE CULTURAL ARTS AND CONVENTION DISTRICT AND ADDING IN ITS PLACE THE CITY OF EDMONDS MEDICAL SELF INSURANCE ADVISORY COMMITTEE (K) PROPOSED ORDINANCE AMENDING ECDC SECTION 16.00.010, PURPOSES, TO CLARIFY THE ZONING CODE'S INTENT TO FULFIL THE PURPOSES SET FORTH IN THE CITY'S COMPREHENSIVE PLAN 3. (5 Min.) CONFIRMATION OF APPOINTMENTS TO BOARDS AND COMMISSIONS 4. (30 Min.) CONTINUED DISCUSSION ON PROPOSED UNDERGROUND PARKING GARAGE 5. (30 Min.) PRESENTATION ON ENDANGERED SPECIES ACT / SALMON LISTING 6. (10 Min.) UPDATE ON SELF - INSURANCE HEALTH BENEFIT FUND 7. (10 Min.) MAYOR'S REPORT 8. (15 Min.) INDIVIDUAL COUNCIL REPORTS /UPDATES ON RESPECTIVE BOARD MEETINGS Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at (425) 771 -0245 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. Delayed telecast of this meeting appears the following Wednesday, Friday and Monday at noon on Channel 32.