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04/25/2000 City Council11 EDMONDS CITY COUNCIL APPROVED MINUTES APRIL 25, 2000 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Gary Haakenson in the Library Plaza Room, 650 Main Street, followed by the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Thomas A. Miller, Council President Dave Earling, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember Lora Petso, Councilmember Dave Orvis, Councilmember Christopher Davis, Councilmember 1. . APPROVAL OF AGENDA STAFF PRESENT Tom Tomberg, Fire Chief Robin Hickok, Police Chief Ray Miller, Development Services Director Peggy Hetzler, Administrative Services Director Noel Miller, Public Works Director Arvilla Ohlde, Parks and Recreation'Director James Walker, City Engineer James Roberts, Engineering Project Specialist Stephen Koho, Wastewater Treatment Plant Mgr Doug Farmen, Accounting Manager_ Brian McIntosh, Cultural/Recreation Supervisor Jana Spellman, Senior Executive Council Asst: Sandy Chase, City Clerk Jeannie Dines, Recorder Mayor Haakenson advised the Fire Consolidation meeting scheduled for April 25 had been rescheduled; therefore, he requested Item 7 (Report on Fire Consolidation Efforts) be rescheduled for the May 2 Council meeting. Change to COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER ORVIS, TO genda AMEND THE AGENDA TO DELETE AGENDA ITEM 7 AND RESCHEDULE IT FOR THE MAY 2 COUNCIL MEETING. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER ORVIS MOVED, SECONDED BY COUNCILMEMBER WHITE, TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Councilmember Petso requested Item N be removed from the Consent Agenda. Council President Miller requested Item O be removed. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER PLUNKETT TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL Edmonds City Council Approved Minutes April 25, 2000 Page I Approve X18 Minutes (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF APRIL 18, 2000 Approve (C) APPROVAL OF CLAIM CHECKS #35953 THROUGH #40597 FOR THE WEEK OF m becks APRIL 17, 2000, IN THE AMOUNT OF $117,178.34. APPROVAL OF PAYROLL CHECKS #28026 THROUGH #28125 FOR THE PERIOD APRIL 1 THROUGH APRIL 15, 2000, IN THE AMOUNT OF $446,118.58. eneral (D) REPORT ON GENERAL FUND AND OTHER SELECTED FUNDS FINANCIAL POSITION FOR THE MONTH ENDED MARCH 2000 ashington Cultural (E) AUTHORIZATION FOR USE OF EAC FUNDS FOR ARTS COMMISSIONERS TO ongress ATTEND WASHINGTON CULTURAL CONGRESS, APRIL 30 — MAY 1, 2000 rite of Edmonds (F) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH GREATER EDMONDS CHAMBER OF COMMERCE FOR THE TASTE OF EDMONDS Edmonds Summer (G) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE EDMONDS- Market SOUTH SNOHOMISH COUNTY HISTORICAL SOCIETY FOR THE EDMONDS SUMMER MARKET its Festival (H) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE EDMONDS ARTS FESTIVAL ASSOCIATION FOR THE ARTS FESTIVAL "' of July (1) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE GREATER EDMONDS CHAMBER OF COMMERCE FOR THE FOURTH OF JULY PARADE AND FIREWORKS DISPLAY Reciprocal Sewage Treatment ('n AUTHORIZATION FOR THE MAYOR TO SIGN AGREEMENT WITH KING COUNTY FOR RECIPROCAL SEWAGE TREATMENT lanning Division Job Descriptions (K) APPROVAL OF NEW PLANNING DIVISION JOB DESCRIPTIONS National (L) PROCLAMATION IN OBSERVANCE OF NATIONAL DAY OF PRAYER ON MAY 4, Day of rayer 2000 Proclama- (M) PROCLAMATION IN OBSERVATION OF THE HOLOCAUST 1tion - 11olocaust ew Item N: Proposed ,Ordinance Amending the Provisions of the Edmonds City ode by Repeal of Chapter 2.80 Purchasing and Adopting a New Purchasing PolicX Policy Counciimember Petso explained this item increased the Council's review threshold from $4,000 to $30,000 for certain purchases and consulting contracts. She explained staff recommended this increase because most purchases have been budgeted with great detail in the annual budget. After reviewing the budget book, she found it difficult to isolate individual vehicle purchases. She was also unable to determine the amount paid to the consultant to the Self - Insurance Committee. She preferred setting the limit at $15,000 - $20,000, particularly in view of the difficult budget decision Councilmembers would be asked to make. She commented a $15,000 - $20,000 limit would include most vehicle purchases and other major expenditures. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER DAVIS, TO APPROVE ITEM N WITH THE CHANGE IN THE LIMIT FROM $30,000 TO $15,000. Edmonds City Council Approved Minutes April 25, 2000 Page 2 1 IL j Councilmember White asked staff to explain how the $30,000 limit was determined. Accounting Manager Doug Farmen explained the $30,000 limit was determined via a survey of neighboring cities. He said $30,000 was also the threshold for many of the vehicle purchases. He.explained the intent was to streamline the procedures so that vehicles itemized in the budget would not require review by the Finance Committee and approval on the Consent Agenda when they had already been approved during the budget process.. He pointed out vehicle purchases, all replacement vehicles, were listed on page 154 of the budget book. He said Attachment 3 to the Agenda Memo was a list of approval thresholds of neighboring cities. Councilmember Earling, Chair of the Finance Committee, said the Finance Committee discussed this issue extensively. He recalled staff's initial recommendation had been $40,000. He pointed out the duplication of time for staff as well as Council to approve items that were already approved in the budget. The Finance Committee determined $30,000 was a fair compromise and recommended that amount be approved by the Council. Councilmember Orvis (member of the Finance Committee) said he preferred to consider all vehicle purchases at one time, during the budget process, to ensure they were considered with a global perspective. Councilmember Petso asked if there was any connection between the $30,000 limit and consultant contracts that are also covered by this purchasing policy. Mr. Farmen said the intent was to include consultant contracts, equipment and services. Councilmember Petso asked if consultant contracts were identified in the budget. Mr. Farmen answered they were itemized in the budget as an annual contract would have usually been established. He said the location of the consultant contract in the budget depended on the type of consultant. Councilmember Petso asked whether the cost of the Self- Insurance Consultant was itemized. Mr. Farmen answered it would likely be included under professional services in the Self- Insurance Medical Reserve Fund. MOTION FAILED (2 -5), COUNCILMEMBERS PETSO AND DAVIS IN FAVOR. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR APPROVAL OF ITEM N AS PRESENTED. MOTION CARRIED (5 -2), COUNCILMEMBERS Ord #3303 PETSO AND DAVIS OPPOSED. The item approved is as follows: New Purchasing (N) ORDINANCE NO. 3303 AMENDING THE PROVISIONS OF THE EDMONDS CITY Policy CODE BY THE REPEAL OF CHAPTER 2.80 AND ADOPTING A NEW PURCHASING POLICY Item O• Proposed Ordinance Amending the Provisions of Edmonds City Code Section 3.24.020, ParaeraDh A, to Reduce the Tax on Bingo and Raffle Proceeds to Five Percent in Accordance with Provisions of Washington State Statute Council President Miller inquired about the revenue lost as a result of the State Legislature's decision to reduce the tax on bingo and raffle proceeds. City Clerk Sandy Chase responded the revenue loss was considered in the 2000 budget. She estimated the revenue loss to be approximately $70,000. She said the ordinance before the Council this evening was a housekeeping item to bring the City Code into compliance with State requirements. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER DAVIS, FOR APPROVAL OF ITEM O. MOTION CARRIED UNANIMOUSLY. The item approved is as follows: Edmonds City Council Approved Minutes April 25, 2000 Page 3 Ord #3304 (0) ORDINANCE NO. 3304 AMENDING THE PROVISIONS OF EDMONDS CITY CODE Reduce Tax SECTION 3.24.020, PARAGRAPH A, TO REDUCE THE TAX ON BINGO AND RAFFLE on Bingo/ PROCEEDS TO FIVE PERCENT IN ACCORDANCE WITH PROVISIONS OF Raffles WASHINGTON STATE STATUTE 3. AUDIENCE COMMENTS "' of July and Taste of Shari Nault,19501 W $0 ", Edmonds, thanked the City for the cooperation they provide the Chamber of Edmonds Commerce for the Fourth of July parade and the Taste of Edmonds. ' Les Blume, 19026 Olympic View Drive, Edmonds, apologized if he offended anyone with the Budget information he provided from the Assessor's office at the last Council meeting. He suggested the Issues Council review the reduced percentage the City was receiving which took money out of the City's pocket. He stressed the City would continue to get less unless they went after it. He suggested the Mayor discuss this with other local cities and attempt to get more of the tax moneys returned to the City. Mr. Blume further commented that the City's budget book costs $30 each to produce and suggested the City prepare its budget book similar to Snohomish County's to reduce costs. He also suggested the budget book be available on the City's website. Mr. Blume expressed concern with the 40% increase in travel costs. Mayor Haakenson commented the City had cut back on travel costs. Safety Rolfe Eckmann, 19107 Ocean Avenue, Edmonds, read from a letter submitted to the Mayor and Fencing on Council expressing strong opposition to the construction of fences on the west sides of Sunset and Ocean Sunset and p Ocean Ave. e Avenues. He said Sunset and Ocean provided the public with unobstructed views of the Sound and Olympics and the streets provided enjoyment to thousands of citizens who park, walk, bicycle, jog or walk their dogs. He said Sunset and Ocean were the City's only streets that run parallel to the Sound and have no manmade structures such as overhead wires, buildings or fences to obstruct the views. He said they learned the railroad applied for permission to increase the frequency and, speed of trains and the WUTC expressed concern with any increased risk to trespassers. Various alternatives were considered and the solution evolved from a physical barrier to fences that produced a visual demarcation. He said neither staff nor neighbors were able to explain who benefited from the construction of fences, not the City, not residents and not the railroad. He said the proposed 42 inch fences would provide a barrier only to those trespassers who were physically incapable of reaching the tracks anyway. He said the fences would affect and offend a large number of citizens who use the two streets not for transportation but for enjoyment. He said the fences would also be inconsistent with the aesthetic values of Edmonds. Mr. Eckmann said during -the five -year history of this issue, many of the railroad, WUTC, and City officials originally involved had moved on. He said the lengthy political, legal and negotiation processes coupled with the turnover resulted in a solution that was unrelated to the original problem of trespassers safety. He requested the City's new leaders provide a fresh perspective in negotiating a more sensible alternative than fences along these two streets. He suggested the use of strategically placed vegetation, which would provide a better physical barrier while not sacrificing aesthetic values. Mayor Haakenson cautioned Mr. Eckmann not to speak to the Sunset Avenue issue as it was still under appeal to the City Council. He said the Council was scheduled to hear the appeal on Sunset Avenue next Tuesday. Safety Tom Rippey, 19031 Ocean Avenue, Edmonds, said the proposed construction of a 31/2-foot fence the Fencing on entire length of Ocean Avenue did not make sense to him or many other citizens. He questioned why Ocean Ave. Edmonds City Council Approved Minutes April 25, 2000 Page 4 Ocean had been singled out to have a fence when other streets may not have a fence.. He commented access to the tracks was in one small location on Ocean, not the entire street. He expressed concern that the City's would no longer be able to mow the grass once a fence was installed. Safety Teresa Verhey, 19115 Ocean Avenue, Edmonds, explained Ocean Avenue was a very quiet dead -end Fencing on street. She pointed out Wharf Street was located one block north of Ocean Avenue; on Wharf, the public Ocean Ave. could park, walk down one of two well maintained walkways across the tracks to reach the water. There were no impediments and no no- trespassing signs. She said many of the homes in the ' Somerset development, one block south of Ocean,. had paths from their homes to cross the tracks to reach their dingy on the rocks or in the water. She explained five years ago she began a lengthy, costly appeal of the fencing on Ocean Avenue that eventually led to approval of fencing on this quiet, dead -end street in a residential area. She said the fencing was intended to be a visual barrier and said her 10 -year old recently suggested nettles would be a better barrier than a visual barrier people could climb over. She said although a decision was made to fence Ocean Avenue and another street, the City separated them for purposes of permitting. The other street did not appeal the original decision and would have been fenced without her appeal efforts and Burlington Northern's interest in fencing both streets at the same time. She described the appeal process she undertook that included appeals to the City Council, Shoreline Hearing's Board, Superior Court, and Court of Appeals. Ms. Verhey observed that through the efforts of Mayor Haakenson, dialogue was occurring between Burlington Northern and the City, discussion of alternatives for the other street. She said despite all her efforts, the other street likely will not be fenced but Ocean Avenue would be. She pointed out there were no funds in the Parks and Recreation budget to maintain the fence. She urged the City to, prevent the fence on Ocean Avenue. _ding for Ruth Kranzler, 500 Paradise Lane, Edmonds, President of the Friends of the Library, said she was the Library speaking on behalf of herself, not the Friends. She said the large increase in payment to SnoIsle that was considered in the recommendation by the Library Board was not required at this time. She said property valuations in Edmonds were high and the increased amount payable to SnoIsle via annexation would not make good financial sense for the City. She observed although it had been said Edmonds paid proportionately less than those paying the annexation rate, but pointed out there.were other cities paying less than Edmonds. She suggested a less expensive measure be proposed that had. a better chance of passing and would maintain the existing services. She suggested other proposals be considered now and not delayed until an annexation vote failed. [Lake Al Rutledge, 7101 Lake Ballinger Way, Edmonds, said the City had not answered a letter regarding Ballinger the problem that occurred at the Lake Ballinger lift station. He suggested the library's technology be Lift station P g gg rY gY used to make copies of the City's budget book. He commented on the need to increase Councilmembers' salaries. Safety Shar McCain, 20810 761'' Avenue W, Edmonds, spoke in opposition to the fence on Ocean Avenue. Fencing on Ocean Ave. I She said the fence was unnecessary; it would only inconvenience those wanting to reach the beach, not deter them. Letter to Elaine Yard referred to a February 29, 2000 letter hand delivered to Councilmembers and the Mayor's ning & boxes. It was a letter originally addressed to Steve Bullock, Planning, and said several questions in the do os letter had not been addressed. She urged the Council to respond to the letter, Edmonds City Council Approved Minutes April 25, 2000 Page 5 Purchasing I Roger Hertrich, 1020 Puget Drive, Edmonds, said the purchasing policy the Council passed was Policy premature and gave a lot of latitude to staff. When the City had a low amount of cash and many, expenditures, he felt the Council should be responsible and more watchful of expenditures. He recalled several years ago the Council moved all funds to the Council Contingency fund; requiring every expenditure to have a staff report providing the Council an opportunity to ask questions. He said this opportunity would not be available to the Council with the purchasing policy that was just adopted. Budget Mr. Hertrich observed public safety was a priority in the City and suggested any unspent allocated moneys be used for public safety. He recalled the Council was informed last year that the funds for the ADB consultant did not need to be expended this year if the funds were not available. He urged the Council not to dedicate any funds to that project due to the City's financial crisis. He objected to the $30,000 allocated to the Edmonds Alliance for Economic Development (EAED), noting the ADB process consultant and the funds.allocated to EAED totaled approximately $60,000. He thanked Mayor Haakenson for his assistance with negotiations regarding Sunset Avenue. He urged the Council to take a positive stand on the Wassall appeal, commenting it would help the negotiations if the State knew the Council agreed with citizens and the Wassalls. Syd Locke, 110 Pine Street, Edmonds, expressed concern with the Cedar Dreams project which he had Concern re: been lead to believe would be an art project. He expected the workmanship on an art project to be Cedar extraordinary. Based on his experience in construction he said the construction as of poor quality and Dreams Art �'' p p q tY Project suggested someone should inspect the construction. He said citizens were disappointed their moneys were being spent on something that was poorly built and designated art. Parks and Recreation Director Arvilla Ohlde advised the contractor was put on notice last week that the City did not accept his work. A process to determine how to resolve problems was underway. She said the Cedar Dreams artwork was the result of a donation from the Edmonds Art Festival museum. Mayor Haakenson advised he received a copy of Mr. Eckmann's letter and asked him to call him in the morning to discuss it. udget 1 4. BUDGET WORKSHOP Workshop Mayor Haakenson thanked Executive Assistant Jeanne Startzman for preparing the PowerPoint presentation. He also thanked the Directors for their professionalism and teamwork over the past few months, noting it was always difficult to discuss decreasing budgets. Mayor Haakenson stated his desire for the Council to consider changing the way they look at the future. He said each time the Council considered the budget, it was done on a one -year horizon. He asked the Council to begin thinking with a four -year plan in mind. After studying the City's employment levels, he concluded the City was as thin as it could be and still provide the services residents expected. The City could not downsize but it could right -size; have the right number of people, with the right skills, using the right assets and equipment to support a specific mission. He said "getting back to basics" meant the Council needed to determine what the City's mission should be, what basic, services should be provided to the citizens. Once that was determined, he said staff could support the mission which would help maintain the morale and productivity of the City organization. He was interested in considering a four -year plan because he said a way could always be found to make it through the next year. However, that was not planning for the future and it was not leadership, it was only muddling through. When the response was to only muddle through, the tendency was to make across - the -board cuts, defer maintenance projects and equipment replacement, or use cash reserves. He referred to a comparison in Edmonds City Council Approved Minutes April 25, 2000 Page 6 the budget book of Edmonds employees to other cities' employees that clearly illustrated Edmonds provided the best amount of service with.the least amount of employees. Mayor Haakenson said the Council requested he prepare various budget scenarios. He stressed the scenarios were not recommendations but only scenarios the Council requested be prepared. He commented although only a few options would be presented, as many as 24 had been considered over the past few months. Mayor Haakenson observed that citizens believed property taxes pay for all services they receive. Although that may have been true at one time, he displayed a. chart illustrating property taxes would generate slightly over $7 million in 2000 and the EMS levy would generate $1.5 million for a total of $8.6 million. The police, fire and Medic 7 Budgets for 2000 total $10.3 million. He emphasized the City's property tax revenue did not pay for the basic services of police and fire. He explained sales tax revenues had remained flat at approximately $4 million for the past 3 -4 years. In summary, all taxes generated in the City total $15.5 million and the General Fund budget was $21 million, an approximately $5 million difference. Mayor Haakenson explained it was assumed in the scenarios that revenues would increase at the rate of 2% per year. He commented he preferred to err on the conservative side and report at the end of the year that the City had exceeded its revenue forecast than to request drastic cuts because the City had been overly optimistic in revenue forecasts. It was also assumed in the scenarios that expenses would increase at the rate of approximately 5% per year except in scenarios where cost reductions were shown. He said labor contracts constituted 3 -3.5% of the 5% increase, leaving an actual expense increase of 1.5 -2% for all other expenditures. Scenario 1 Mayor Haakenson explained Scenario 1 illustrated where the City was today, factoring in previous assumptions regarding the 2% revenue increase and 5% expense increase. Scenario 1 had no projected property tax increases or any ,proposed budget cuts and the SnoIsle Library contract remained as a General Fund expense. He said there was a $1.8 million shortfall in remaining cash in 2002, nearly $5 million in 2003, approximately $8 million in 2004 and $12 million in 2005. He explained this would be the scenario if nothing was done, if all revenues and expenditures remained as they were today. Scenario 2 Mayor Haakenson explained Scenario 2 also illustrated where the City wag today, but reflected the library contract being made in some other manner. He emphasized although there was some benefit to removing the library contract as a General Fund expense, it was not the real problem. The loss of $1.4 million in annual revenue was the problem; even taking the library contract out of the General Fund, left the City in a deep financial crisis. He pointed out with the library contract out of the General Fund, there would still be an $8 million shortfall in 2005. Mayor Haakenson said another assumption he would request over the four -year period was to hold today's employment levels in place; no additional employees, the same staffing levels today as in 2004, possibly less but no more. He said this did not mean vacancies would not be filled, the City would just do the job with what they had. He said the Council would need to address staffing levels if they wished to consider, future annexations. "He said he would be opposed to annexing any areas with the current staffing levels and no plan to increase staffing levels. Edmonds City Council Approved Minutes April 25, 2000 Page 7 Mayor Haakenson explained each scenario had different conditions and urged the Council to pay particular attention to tax considerations, projected cuts and whether the library contract was paid from the General Fund. He explained his goal was to identify a scenario that would carry the City through 2004 and maintain an ending cash balance. He stressed there were no easy answers and there were a myriad of choices. Based on the assumption of employee levels and expected cuts necessary to balance the budget, he said the Council must determine what services and at what level they would be provided to the community. He said in some instances, cuts were offered in areas he believed were amenities to the City but the. Council may consider them extras and not basic services. He said he attempted to protect what he considered basic services, commenting they may not be the Council's choice of basic services. Scenario 3 Mayor Haakenson explained Scenario 3 reflected an annual 6% property tax increase as well as removing the library contract from the General Fund. He said this resulted in a shortfall of $137,000 in 2005 (versus $8 million in Scenario 2 and $12 million in Scenario 1). He said Scenario 3 would allow the City to reach 2005 with an ending cash balance but cash was depleted each year and in 2005 the City actually had a negative cash balance. Mayor Haakenson explained he had considered numerous alternatives to reduce expenses, most were in the "muddling through" category. Among these alternatives were extending the life of vehicles (the down side of this option was higher maintenance costs), a reduction in janitorial cleaning (already being done), closing City-owned buildings, leasing or renting City-owned buildings, selling, the few pieces of. City-owned land, delaying the purchase of any scheduled vehicles (the downside was short-term impacts and higher maintenance costs), and cutting all travel and training (the training and travel currently authorized was required as part of union contracts). Mayor Haakenson said other expenditure reductions have been suggested such as providing no cost of living or step increases for City employees. This was to him a last gasp effort before the City closed its doors. He viewed it as a short-term solution and a morale destroyer: He said it had also been suggested City Hall be closed one day a week; he believed that was the second -to -last gasp effort. Scenario 4 Mayor Haakenson explained Scenario 4 had no property tax increases over the four -year period, the library contract removed from the General Fund, and a series of expenditure reductions over a four -year period. He explained this had similar results to Scenario 3 although the shortfall was greater in 2005. The City would actually have a shortfall in 2004 but have a shortfall of approximately $2 million in 2005. Scenario 5 Mayor Haakenson explained Scenario 5 was a combination of factors and a compromise situation. He explained the library contract would remain a General Fund expense, property tax increases alternating on a yearly basis from 3% to 6% for four years and expenditure reductions in the amount of $500,000 in 2001, $400,0000 in 2002, $300,000 in 2003, $200,000 in 2004, and $200,000 in 2005. He said this scenario would allow the City to reach 2005 with cash remaining at the end of 2005. He 1 offered the following as examples of expenditure cuts for 2001, reiterating these were not recommendations but only scenarios if the Council desired to cut $500,000 from the budget in 2001. Edmonds City Council Approved Minutes April 25, 2000 Page 8 Department Reduction Service Lost Police $120,000 One Animal _ Control Officer, reserve program, crime prevention unit, parking enforcement, hire two patrol officers Fire 45,000 Reserve program; consultant budget Development Services 60,000 Not fill vacant engineer position Public Works 38,000 Not fill vacant custodian position Parks and Recreation 74,000 Reduce flower program and Yost pool hours, no night security at Frances Anderson Center, close Frances Anderson Center one hour early, request Hotel/Motel funds to pay part of Cultural Arts Coordinator salary Community Services 88,000 Eliminate vacant Director position Courts 18,000 Eliminate all part-time clerks Administrative Services 62,000 Eliminate Records Management Center Human Resources 10,000 New hire savings, civil service savings Miscellaneous 45,000 No longer fund the Alliance Miscellaneous 11,000 Stop publishing Council and Planning Board meeting display ads Miscellaneous 15,000 Combine third -floor receptionists Total Possible Expenditure Reductions $600,000 Mayor Haakenson explained additional expenditures for 2002 — 2004 were yet to be determined and were heavily dependent on what the Council decided were the basic services the City should provide in the future. He explained the approved 2000 budget included over $1 million in cuts, commenting a list of those cuts was included in the Council's packet. If there were no property tax increases and the library contract remained in the General Fund, the City would need to cut literally millions from the budget to keep the City afloat. He explained large -scale reductions would force the City to be a city without parks, with little economic development because of a depleted Development Services Department, and more than likely reduced police and fire protection. He summarized, if something was not done at some point, Edmonds would cease being a city. Regarding revenue increases, Mayor Haakenson pointed out the City was relatively maxed out on new revenue sources. Over the past few years, the Council had considered quite a few and has rejected quite a few, in most cases rightfully so due to the burden they would place on the taxpayer. He explained there were a number of possible sources that could be considered for implementation into the budget including regular property tax increases, EMS tax increases, increasing the utility taxes 1/4% to the full 6% (from the current 53/4 %), instituting a new garbage tax, or instituting a new $100 business excise tax. Mayor Haakenson ,said Fire Chief Tomberg would like to discuss fee - for - service as a revenue option but he requested Chief Tomberg delay that issue until budget discussions next fall. Mayor Haakenson explained a 3% property tax increase for one year would generate $213,000, a 6% property tax would generate $425,000 per year. Increasing the utility tax from 53/4% to 6% would generate $60,000; instituting a garage utility tax would generate $190,000; and the. annual business license tax would generate $166,000. Mayor Haakenson summarized there were many questions and not as many answers. Acknowledging it was a long time until the October budget presentation, he sought the Council's input on the service levels- to be provided to citizens in the coming years. Edmonds City Council Approved Minutes April 25, 2000 Page 9 Councilmember Plunkett requested staff provide Scenario 3 with a reduction in the property tax increase to 1 %, 2% and 3% and the same with the library contract in the General Fund and with the library contract paid in another manner. Mayor Haakenson advised those scenarios were available but had not been presented in the interest of time. Councilmember Petso inquired about the limits on property tax increases and whether they were imposed by I -695. She recalled a citizen inquired why the City did not receive additional property tax revenue as property valuations increased. Ms. Hetzler answered Washington State law restricts the City's ability to increase property tax revenue in excess of 6% over the previous year's revenue. She said this limitation was not related to I -695. She said as I -695 had been preliminarily declared unconstitutional, the City was limited only by the 6% cap, although the Supreme Court would rule on I -695's constitutionality in the fall. She explained other states calculate their property taxes differently; i.e. in Texas if the rate was $2.00 per $1,000 and property assessed valuations increased, the City would have the same $2.00 rate applied to the higher assessed valuations. In Washington, property taxes were based on the levy, the annual revenue, and not assessed valuations. She explained in 2000, the property tax levy would generate approximately $7 million. Next year, the Council could increase that amount up to the State maximum of 6 %, which would generate approximately $400,000 more. If the Council did not approve a levy increase, the rate per $1,000 on a resident's property would decline and the City would receive the exact same revenue that year (200 1) as they had received for the previous year (2000). Councilmember Earling pointed out although there had been a great deal of discussion regarding library funding, public safety was an issue that many citizens would rank first. He suggested Mayor Haakenson obtain feedback from the public regarding what service reductions they would support. He said public safety may be important enough to citizens that they would be willing to assure its funding by assessing themselves for that service. He also suggested staff research whether. other cities use a levy to fund public safety. Mayor Haakenson explained he was seeking guidance from the Council as well the public. He described his-plans for two Town Meetings, the first this spring and the second in the fall, to seek the public's opinion regarding what they want included in the budget and what they would support eliminating from the budget. Councilmember Earling expressed his appreciation for Mayor Haakenson's suggestion to take a long- term vision. He agreed it was necessary to determine the . Council's vision before determining expenditures. He referred to the expenditure reduction scenario that included not hiring a Community Services Director. He recalled in the past one of the Community Services Director's responsibilities was keeping track of projects. He pointed out the need for that position in view of the highway that runs through the City, the railroad tracks running through the City, the potential of moving the ferry dock, and the potential of a multimodal center. He said 3 -4 staff members were currently trying to keep the multimodal project moving. forward. He questioned whether it was better to let those staff members do their full -time job and hire a Community Services Director. He remarked the City was in too much of a defense position — cutting expenditures. He viewed Edmonds as a first class City and said expenditure reductions may result in Edmonds becoming a second class City which he felt was not what citizens wanted. He agreed the City should make efficiency improvements, cut taxes when possible, and not raise taxes anymore than necessary. Councilmember Earling observed there had been a great deal of discussion regarding General Fund assumptions and expressed concern with long term capital costs and whether they were being considered Edmonds City Council Approved Minutes April 25, 2000 Page 10 J 1 in the same context as the General Fund. Councilmember Earling also expressed concern with potential expenditures to respond to the ESA listing. He estimated several million dollars would be required over the next several years to address ESA and asked whether that had been considered in the four -year vision. Council President Miller expressed his appreciation for Mayor Haakenson's long term vision of the budget and for considering the budget early in the year. He agreed the Council needed to determine what the vision was and how it was to be funded. He asked whether consideration had been given to the City's ability to refinance bonds to obtain a lower rate and/or a longer term. Mayor Haakenson indicated the bonds had been refinanced recently when rates were low.. Council President Miller appreciated Mayor Haakenson plans for Town Meetings as well as his newspaper column. Council President Miller indicated a desire for further information regarding a public safety levy, noting as a result, of cuts made in the 2000 budget, the Police Department did not replace two positions that were vacated even though annexations had occurred. Consequently, the Police Department staff was at pre - annexation levels yet there were more citizens to police resulting in a degradation of service. Observing residents had shouldered the burden of increased property taxes, he suggested consideration be given to a B &O tax including determining how much revenue it would generate. Mayor Haakenson referred to the scenario that included a $100 business excise tax. Council President Miller said he was more interested in researching a percentage rather than a flat rate. It was the consensus of the Council to allow audience comment on the budget scenarios. Les Blume, 19026 Olympic View Drive, Edmonds, asked whether the Supreme Court declaring I -695 unconstitutional would have a large impact on the City's budget. Mayor Haakenson said the City was operating under the assumption that I -695 would remain a reality and the City would never see any funding from that source again. Mayor Haakenson said Governor Gary Locke had indicated license tabs would remain at $30. Ellen Ernst, 702 7"' Avenue S, Edmonds, echoed Councilmember Earling and Council President Miller's suggestion that all issues be explored. She encouraged citizens to provide their opinions regarding what they wanted funded. She, said when citizens were given a choice and understood the situation, they would be more apt to support it. Al Rutledge, 7101 Lake Ballinger Way, Edmonds, said the City would get money from Olympia that could be used in the budget.' He recommended the City retain those funds to address upcoming initiatives that would repeal tax increases and require a vote on property tax increases. He supported Mayor Haakenson holding Town Meetings. Richard Marin, 18918 80"' Avenue W, Edmonds, supported Mayor Haakenson's 4 -5 year view of the budget. He also supported the combination of cuts to make the City as efficient as possible while maintaining the A -1 quality of the City. He said demonstrating to citizens that the City was being operated as efficiently as possible along with maintaining the City as a quality place was the right combination. Syd Locke, 110 Pine, Edmonds, hoped repair and maintenance of the City's infrastructure including roads, sewer, outfall and lift stations, would be considered in the budget. He said the repair and maintenance of the City's infrastructure had been neglected over the past 20 years. Edmonds City Council Approved Minutes April 25, 2000 Page I I Roger Hertrich, 1020 Puget Drive, Edmonds, observed Seattle had bond issues for improvements which Edmonds had not done. He suggested that be considered as funding for major expenditures. He suggested the City and community work together to develop a theme, which would bring more people to Edmonds and generate increased sales tax. He emphasized the City needed to consider revenue as well as expenditures. He supported the 5 -year budget program. He agreed the City's budget would be difficult and hoped Olympia would provide some assistance. He wished the Council luck and offered to participate in the process. Mayor Haakenson commented that Governor Locke's budget as well as the Legislature's budget returned some funds to the City but it was unknown whether a compromise could be reached. He' said the funds would not be in the range of the $1.4. million the City lost, pointing out $200,000 was approximately what a 3% property tax would generate. He agreed any funding would help but those funds had not been included in the budget scenarios presented. Council 5. DISCUSSION OF COUNCIL CONTINGENCY FUND ontingency Fund Administrative Services Director Peggy Hetzler explained earlier this year the Council voted to transfer approximately $300,000 in General Fund ending cash balance into the Council Contingency Fund. Since that time, staff developed a list of requests' for funding from the Contingency Fund. On March 28, the Council approved budget restorations from the Council Contingency Fund totaling approximately $50;000. She advised the remaining balance was approximately $380,000. During the April meeting, the Finance Committee reviewed the detailed list of requests submitted by City staff and recommended considering only the audio visual equipment for the public safety facility and to reserve any remaining funds for future ESA and public safety litigation costs. She indicated the minutes from the Finance Committee meeting were included in the Council packet as well as an analysis from the Engineering Department regarding the audio visual equipment they recommended for the public safety complex. She said the cost of the equipment was $125,000. Councilmember Plunkett asked if the devices in the Library Plaza room could be moved and used in the public safety building rather than purchasing new equipment. Engineering Project Specialist Jim Roberts said it had been hoped this equipment could be adapted but unlike home audio visual equipment, it was not as expandable. The first step in the process was meeting with the entities that would use the room (Community Development, Courts, and Council) to determine their needs. Due to the new Council Chamber layout, more capabilities were needed, as there were more areas where microphones and audio visual were needed. Councilmember Plunkett asked if any of the existing equipment could be used. Mr. Roberts answered the only portion of the existing equipment that could be used was the equipment used to assist the hearing impaired. The audio amplifier had a maximum capacity of 12 inputs and the new system would require 22 audio inputs. 'He said it was not possible to purchase a sound card to expand the existing system's capability. Councilmember Plunkett asked if the microphones currently being used could be used in the new public safety complex. Mr. Roberts said the microphones could perhaps be moved but there were other considerations. He said consideration being given to keeping the existing equipment in the Library Plaza room so that it could be used for other meetings. He said the cost of. the microphones was a small component in the cost of the next system. Councilmember Plunkett asked if the existing visual Edmonds City Council Approved Minutes April 25, 2000 Page 12. equipment could be used in the new building. Mr. Roberts said it could if a system with limited capabilities was desired. Councilmember. Plunkett acknowledged the existing equipment may not be what was envisioned or provide everything that was desired, but asked if it physically and technically could be moved and used in the new building. Mr. Roberts answered yes if only a limited system was desired, however, he said it really did not work in the new room configuration. Councilmember Earling explained the Finance Committee brought ,only the discussion of funding the audio visual equipment from the Council Contingency Fund to the Council as the Mayor indicated none of the other items on staff's list of requests required immediate funding. He emphasized the Finance Committee did not forward a recommendation regarding the audio visual equipment and had forwarded it to the Council for discussion. Mayor Haakenson explained this equipment was not included in the price of the public safety building because, apparently when the building was designed, it was determined it would be taken care of when the time came. He said if new audio visual equipment was desired, the time had come. Councilmember Davis asked what $ 125,000 would provide. Mr. Roberts answered the new equipment would provide the capability fqr audio and visual presentations in every conceivable condition in the room. He said the Court had their own unique configuration that the new .system could accommodate along with any other configuration. He said the video system would be a 10 -foot projection system with a retractable screen, the video system would have articulated cameras that could be operated by remote control, lights would be operated by remote control, video and audio could be provided to overflow crowds in the hall, and overhead projections would be processed directly to the projection system. Councilmember Orvis asked if the new system would be an enhancement of the existing equipment. Mr. Roberts answered yes. The system also had the capability of projecting a paper document onto the video screen. Mayor Haakenson recalled none of the portable microphones worked at last week's Council,meeting and Councilmembers' microphones often do not work. He commented the question was what service level the Council wanted to provide the audience and television viewers. For Council President Miller, Councilmember Earling advised the Finance Committee brought forward for Council consideration both the audio equipment at a cost of $50,000 and the video equipment at a cost of $75,000. Council President Miller asked if the audio and visual equipment could be separated, and the sound system installed now and the video equipment later. Mr. Roberts answered yes. Councilmember Orvis asked if the entire purchase could be delayed. Mr. Roberts answered yes, but said using the existing equipment would be very difficult and the room would need to be reconfigured. Councilmember White explained when the Council last discussed the expenditure of $125,000, it seemed extraordinary. After seeking additional information prior to the meeting, he now felt it was justified. He expressed frustration with the documentation provided by staff regarding the system, commenting it may be premature for the Council to make a decision due to the lack of information to make an analysis. He suggested the decision be delayed to obtain additional information. Councilmember Earling said it was difficult to justify spending $125,000 particularly when only $380,000 was left in the Council Contingency Fund' and in view of funds that would be needed for Edmonds City Council Approved Minutes April 25, 2000 Page 13 litigation costs and ESA. It was for those reasons, the Finance Committee forwarded the issues to the Council for consideration without a recommendation. He supported purchasing the sound system, which would enhance the Council meetings and the Council's ability to communicate with the public. He suggested creative ways of financing the video equipment be explored. Councilmember Plunkett suggested a prioritization of the new equipment be provided (in, layman's terms) such as new microphones to replace the ones that did not work and new handheld microphones. Councilmember Plunkett asked if the system could be divided into thirds or in half. Mr. Roberts said that could be explored with the consultant. He said the consultant informed them the existing system was not upgradeable. Development Services Director Ray Miller suggested the Council have a demonstration of the new equipment. Councilmember Petso asked if the proposed equipment was "bare bones" or a system with luxury extras. Mr. Roberts advised an attempt was made to anticipate every conceivable need and to allow for future expansion. Mayor Haakenson asked if the system would be used by the Court. Mr. Roberts answered yes, the Court used the room 60% of the time. Mayor Haakenson asked if the Court had been asked to contribute toward the equipment. Mr. Roberts was not certain. He explained the room was used 60% by the Court, 20% by the Council and 20% by other departments. Council President Miller said there was enough information in the packet to indicate the sound system was critical, commenting it was a legal requirement for the City Clerk's Office to maintain accurate records as well as for the Court. He supported approving the sound system for the public safety building but was not convinced of the need to purchase the video equipment, particularly in view of the City's financial position. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER EARLING, TO APPROVE THE PURCHASE OF A NEW SOUND SYSTEM FOR THE PUBLIC SAFETY BUILDING, COST NOT -TO- EXCEED $50,000. MOTION CARRIED UNANIMOUSLY. Mayor Haakenson asked if the Council wanted further information regarding the video system. He said the information provided in the packet was a result of staff's efforts to answer the questions the Council had raised. Councilmember White recommended there be a more comprehensive presentation on the video equipment including justification of its purchase and how the audio and visual equipment operated together. Councilmember Plunkett supported pursuing funding of the equipment from the Court in view of their 60% usage. Mayor Haakenson directed Mr. Roberts to work with the Court to determine if funds were available from Criminal Justice funding for a portion of this equipment. Funding for 6. DISCUSSION OF EDMONDS LIBRARY BOARD RECOMMENDATION FOR FUTURE the Library FUNDING OPTIONS I Administrative Services Director Peggy Hetzler reported that in March the Library Board conducted a public workshop to identify funding strategies. Public input was solicited and funding options were discussed including annexing to the SnoIsle Library District and a dedicated levy lid lift. She stated that Edmonds City Council Approved Minutes April 25, 2000 Page 14 a memo from Library Board President Robert Freeman was included in the Council packet that indicated the Board's unanimous support, of annexation . into. the SnoIsle Library District. She highlighted advantages of this funding mechanism that were outlined in the Board's memorandum including 1) joining the SnoIsle system provided a permanent solution for library funding, 2) it allowed the City to avoid deep cuts in other services, 3) it provided a fallback position if the SnoIsle vote failed, 4) costs under the current contract were likely to escalate, and 5) it provided continuous, stable funding for the library. Ms. He advised the Library Board's recommendation was provided to the Long Range Financial Task Force who forwarded it to the Council without a recommendation. Mayor Haakenson thanked the Library Board for holding the public meeting and for forwarding their recommendation to the Council. Library Board President Robert Freeman, 622 7t" Avenue, Edmonds, emphasized one of the advantages of annexing to the SnoIsle Library was long. term, stable funding for the library. He said the library was a service valued by citizens of all ages from children to seniors and along range viewpoint was necessary to operate the library system well. He emphasized the need for a long range viewpoint and stable funding in order for the library to provide books, technology and numerous programs. Councilmember Orvis asked staff to address the cost to the taxpayer of annexation versus .a levy lid lift. Ms. Hetzler explained the. SnoIsle annexation rate was $0.50 per $1,000 of valuation. For a median value house in Edmonds ($235,000), the increase in property tax would be approximately $117 per year. If the current SnoIsle contract amount remained constant, the cost of a levy lid lift would be $0.34 per $1,000 or approximately $80 per year for a median value home. Councilmember Orvis observed the amount of the SnoIsle contract could increase. He said the amount SnoIsle collected was limited by the same 6% limit the City had and asked if Ms. Hetzler could foresee property values increasing faster than average property values in the library district. Ms. Hetzler indicated she had not researched that issue. Councilmember Orvis questioned whether property value was a good way to divide costs. Ms. Hetzler answered it was a common practice. Councilmember Orvis observed the cost of the library district was divided by assessed values and taxpayers were taxed based on the total valuation. If Edmonds property values increased faster than the rest of the district, the amount Edmonds property owners paid could also increase faster, resulting in Edmonds property owners paying a greater portion of the total SnoIsle cost. Ms. Hetzler answered that was possible based on the district as a whole. Councilmember Orvis inquired about the cost to SnoIsle to operate the Edmonds library. Ms. Hetzler said recent estimates indicate the Edmonds Library costs SnoIsle $1.4 million per year to operate; however, SnoIsle did not do a cost accounting according to each branch. Councilmember Orvis asked if SnoIsle would ensure the $0.50 per $1,000 paid by an Edmonds taxpayer was used to fund the Edmonds library. Ms. Hetzler answered she was not certain. Councilmember Orvis asked who would control the library building if the City annexed into Snolsle. Ms. Hetzler answered the building would continue to be owned by the City. In other cities, SnoIsle operated the library rent free in the building and SnoIsle paid janitorial costs. Councilmember Orvis further asked if SnoIsle could take away the library. Ms. Hetzler answered no. Councilmember White asked how SnoIsle .was governed. Ms. Hetzler answered it was a district with a board that made decisions. Mr. Freeman explained the Board of Directors was 'appointed by the Edmonds City Council Approved Minutes April 25, 2000 Page 15 Councils of Snohomish and Island Counties. He advised one Boardmember, Arthur Kirschenbaum, was present tonight. Councilmember Petso asked if a failed annexation effort could be considered a measure of how citizens valued library services. Mr. Freeman agreed that was a risk. He said many people value the library but do not want taxes to be increased. He pointed out if the annexation vote failed, the library contract would still be in place, the vote would not cancel the contract. Councilmember Petso relayed an e-mail she received from a citizen who supported the library but did'not support annexation. Councilmember Petso asked whether the ballot could be structured to determine whether those voting no opposed the funding method or opposed funding the library. Mr. Freeman said he.was not certain how that could be accomplished. Councilmember Petso asked if consideration had been given at the public meeting to placing other issues on the ballot such as a public safety levy. Mr. Freeman answered the task of the Library Board was the library, therefore, funding of other items had not been discussed. Councilmember Plunkett complimented the Library Board on their work and for the packet they provided the Council. Councilmember Plunkett asked if the City could structure the levy lid lift so that it would be ongoing. Ms. Hetzler answered yes, a levy lid lift could be enacted that would remain in place until another public election nullified it. Councilmember Earling asked if the levy lid lift would have a sunset date. Ms. Hetzler answered the levy lid lift could be structured for a specific period or indefinitely. Councilmember Earling observed the earliest a vote could take place would be in September. He urged Mayor,Haakenson to seek input from the public regarding funding the library via annexation to SnoIsle or via a levy lid lift as well as the public's interest in a public safety bond. Councilmember White asked if a perpetual levy lid lift could have increases incorporated into it. Ms. Hetzler answered the levy would be subject to the 6% annual cap; if the Council voted to increase property taxes, the levy lid lift would also increase. For Councilmember White, Ms. Hetzler advised the levy lid lift and annexation required only a simple majority and did not have any turnout validation requirements. Council President Miller recalled there was a hardship clause in the City's current contract with SnoIsle. He suggested Mayor Haakenson pursue negotiations with SnoIsle regarding a reduction in the current contract. Arthur Kirschenbaum, SnoIsle Library Boardmember, said according to the figures he heard tonight, Edmonds contributed $1 million and received $1.4 million in library services, indicating the Library Board was the one enduring the hardship. He said if the City's financial hardship was due to I -695, negotiations with Edmonds due to hardship would require re- negotiating with all nine contract cities. He indicated the Board likely would be reluctant to do that. Councilmember Petso supported Council President Miller's suggestion, pointing out the fact that SnoIsle did not separately account for each cities' expenses and use. She said Edmonds could easily be distinguished from some other cities because the loss of sales tax equalization impacted Edmonds more significantly than cities with their own sales tax base. She recommended Mayor Haakenson pursue negotiations with SnoIsle regarding the hardship clause. Edmonds City Council Approved Minutes April 25, 2000 Page 16 Mr. Kirschenbaum commended Mayor Haakenson for his budget presentation, which put the problem in a more graphically clear focus. Council President Miller requested staff return with a recommendation regarding election dates and the cost of annexation and a levy lid lift. Councilmember White recommended that information to be provided soon as the Council needed to make a decision. Fire 7. REPORT ON FIRE CONSOLIDATION EFFORTS Consolidation Report . This item was postponed to the May 2 meeting due to rescheduling of the Fire Consolidation meeting. 8. REPORT ON COMMITTEE MEETINGS Community Services/ Community Service/Development Services Committee Dev. Serv. Councilmember White reported the Committee discussed the Sno -King Special Recreation Program that Committee is funded by Mountlake Terrace, Lynnwood and Edmonds. The City's contribution to the $60,000 program was $5,000; approximately 30% of the participants were from Edmonds and the City paid only 8.3% of the cost. The Committee agreed this was an outstanding program. No action was required ' on this item. The Committee also discussed a possible change to the critical area slope requirements in the ECDC to provide greater flexibility and still meet critical area protection criteria. The Committee directed staff to place a study proposal on the Consent Agenda for approval with the balance of funding . coming from unanticipated revenues. The Committee discussed the Sound Transit Commuter Rail and EIS report; the appeal had been resolved and the project was moving forward. Councilmember White said a Technical Advisory Committee (TAC) was formed to review Amtrak station improvements and other issues and who would report to the Council. The Committee also discussed the possibility of wetland mitigation and wetland banking. Councilmember White explained wetland banking may occur when an. environmentally sensitive area was, developed and the developer was allowed to recreate six times the amount of wetlands elsewhere. How the City would integrate the ESA issues with wetland mitigation/banking was also discussed. No action was required on this item. Public . Public Safety Committee Safety Councilmember Davis reported Assistant Police Chief Greg Wean described how the cities of Lynnwood Committee and Mountlake Terrace have multiple towing contracts which allows them to clear accident scenes more quickly. Assistant Chief Wean pointed out the City of Edmonds had previously contracted with just one towing company and desired to change to multiple towing contracts. This item was approved on the Consent Agenda. Lastly, the Fire Department provided a report on the items requested to be funded via the Council Contingency Fund and the level of urgency of those items. Finance I Finance Committee Committee Councilmember Earling explained the Committee discussed the Council Contingency Fund, which the Council had also addressed earlier this evening. He said a preliminary report was provided by Jeff Wilson, Planning, regarding some of the costs the City might face as a result of ESA. He suggested a similar presentation be made to the Council in the near future. The Committee also discussed the purchasing policy that the Council also approved earlier this evening. Edmonds City Council Approved Minutes April 25, 2000 Page 17 long Range, Long Range Financial Task Force inancial ask Force Councilmember Orvis advised most of the items had been covered. He said the Committee discussed building maintenance needs such as the rewiring of the Frances Anderson Center. That item was referred back to staff to determine the cost of bonding to finance the necessary maintenance. 9. MAYOR'S REPORT Mayor Haakenson requested clarification on the request to negotiate with SnoIsle Library District regarding the hardship clause. Councilmember Earling encouraged Mayor Haakenson to have a conversation with SnoIsle but felt it may set a precedence requiring SnoIsle to negotiate with other cities impacted by I -695. Snolsle Library COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER PETSO, TO Contract AUTHORIZE THE MAYOR TO ENTER INTO NEGOTIATIONS WITH SNOISLE LIBRARY REGARDING THE HARDSHIP CLAUSE FOR 2000. UPON ROLL CALL, MOTION CARRIED (4 -3), COUNCIL PRESIDENT MILLER AND COUNCILMEMBERS PETSO, PLUNKETT, AND ORVIS IN FAVOR, AND COUNCILMEMBERS WHITE, EARLING AND DAVIS OPPOSED. Endangered Mayor Haakenson recalled there had been several comments regarding the Endangered Species Act and Species Act the .need for discussion by Council and staff. He informed the Council that Jeff Wilson, Planning, submitted his resignation effective May 8. Mayor Haakenson said Mr. Wilson had been a wealth of information and would be missed. He would attempt to have Mr. Wilson make a presentation on ESA before he left the City. . Request to Postpone Mayor Haakenson said the City had received a letter from Mr. and Mrs. Wassall regarding fencing on May 2 Sunset Avenue, requesting a 60 -day continuation of the Closed Record Meeting scheduled for May 2 to Closed Record allow discussions to continue with Burlington Northern and WUTC regarding alternatives. He said the Meeting Council could consider continuing this matter at the May 2 meeting. 10. INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS Council President Miller wished Councilmember Davis a Happy Birthday on April 28. He also encouraged the Council to review the letter from Mr. and Mrs. Wassall regarding postponing the appeal for 60 days from May 2. Council President Miller advised Mayor Haakenson had responded to Mr. Eckmann's letter regarding the Ocean Avenue fence. He expressed his appreciation to Mayor Haakenson for responding not only to Mr. Eckmann but also to other citizens. Council President Miller acknowledged receipt of Ms. Yard's letter and requested Mayor Haakenson respond regarding her concerns on behalf of the Council. Council President Miller recalled Councilmember Earling's reference to the Community Services Community Director and the need for oversight on capital projects. He said some of the issues, problems, and delays Services experienced with the public safety project were a direct result of not having a .Community Services Director Position Director. He pointed out the Community Services Director position was budgeted in the 2000 budget. He felt allowing that position to remain vacant was doing -a disservice to the City and its citizens. Edmonds City Council Approved Minutes April 25, 2000 Page 18 COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER WRITE, TO DIRECT THE MAYOR TO FILL THE POSITION OF COMMUNITY SERVICES DIRECTOR. Councilmember Plunkett pointed out the new Councilmembers may not be familiar with the position and preferred the matter be placed on a future agenda with documentation outlining the issues. Mayor Haakenson pointed out a motion was not necessary because the position was in the budget. He indicated he was hesitant to fill the position when -at the same time asking the Council to make cuts to the budget. He was also uncomfortable filling the, Community Services Director position for this year if there was any opportunity the Council would cut the position from the 2001 budget. If the position was filled, he wanted assurance the position would be continued in 2001. Councilmember Earling pointed'out enormous growth was occurring on a number of issues in the City. He concurred with the need to hire a Community Services Director rather than distribute the work between staff members and the Mayor. He indicated he would continue to support. and advocate for the Community Services Director position in the future. Councilmember White questioned the need to revisit this position as it had been approved in the budget. He recalled the Council had this discussion'during the budget process and made a decision to fill the position. Although he understood the Mayor's reluctance, he felt filling the position was four months overdue. Councilmember Orvis said he would like more information about the position. He was puzzled this position was included as an expenditure reduction in one of the scenarios. Councilmember Davis echoed Councilmember Orvis' desire for additional information, stating he did not have enough information regarding the position to make a confident decision. COUNCILMEMBER ORVIS MOVED TO AMEND THE MOTION, SECONDED BY COUNCILMEMBER PLUNKETT, TO BRING THIS ISSUE BEFORE THE NEXT COMPREHENSIVE HUMAN RESOURCES COMMITTEE. For Councilmember White, Councilmember _ Orvis advised he was the Chair and Council President Miller and Councilmember Davis were members of the Human Resources Committee. Councilmember White preferred a presentation be made to the Council. COUNCIL PRESIDENT MILLED WITHDREW HIS MOTION WITH THE AGREEMENT OF THE SECOND. Councilmember Earling emphasized the Mayor was empowered to fill the Community Services Director position. Although he supported the new Councilmembers learning more about the position, he felt it would be setting an odd precedence to review an item that had already been approved in the budget. Councilmember Plunkett pointed out the reason for the review was the odd situation of a long term budget, shortfalls not previously experienced and the Mayor seeking affirmation that the Council would continue to support the position. Councilmember Petso agreed with comments made that inadequate information was available to make a decision. Council President Miller suggested a discussion on the Community Services Director position be placed on the next agenda. Edmonds City Council Approved Minutes April 25, 2000 Page 19 Councilmember White pointed out the attorney costs for the public safety complex were a direct result of not having the Community Services Director position filled. Mayor Haakenson said the budget authorized him to hire a Community Services Director. His extreme reluctance was due to the possibility of not being able to attract a quality person if he /she believed the position would be eliminated in seven months, a very real consideration given the City's budget. He questioned how the Council could assure him the position would be in place next year. He agreed the position was important, even more so with Mr. Wilson leaving. He said one option would be to offer the applicant an employment contract that provided some guarantees. Mayor Haakenson advised he would begin a search tomorrow for a Community Services Director. If the Council disagreed, they could let him know. In response to Ms. Yard's comments, Councilmember Petso advised she received her letter but believed staff was handling the matter. She encouraged Ms. Yard or other citizens to follow up if they did not receive a response to their letter. She said if she believed staff was addressing an issue, she would likely not act until she learned otherwise. sound Councilmember Earling reported Sound Transit was making good progress on a number of modes of ransit transportation. They would begin additional bus service in June and again in September. He said the commuter rail system from Seattle to Tacoma would be delivered in September and negotiations have been completed with Burlington Northern to ensure that occurred. He indicated the April 24 Seattle Times had a very good article regarding commuter rail. Regarding light rail, Sound Transit recently concluded negotiations with the University of Washington regarding two major stations on their campus and the transfer of the downtown Seattle bus tunnel from King County Metro to Sound Transit was announced today. Councilmember Davis thanked Mayor Haakenson for the budget presentation, agreeing with the importance of looking beyond this year and next year. Councilmember Orvis commended Mayor Haakenson for the budget scenario that restored two police officers. He reported the Human Resources Committee considered college reimbursement costs and Human found them acceptable. The Committee also considered and approved reclassification of the Court Resources p PP Committee Administrator. The Committee approved requested staff develop a policy that would allow the Committee to review all reclassifications at one time during the year to allow them to consider them "more globally. Health Regarding the Health District Board, Couricilmember Orvis reported the ordinances regarding tobacco District advertising were overturned by the Ninth District Court. He said regulations on tobacco advertising Board could also be pursued under the premise of protecting children, an option that Snohomish County would be pursuing. He reported there was a proposal at the Health Board to .ban animals from fresh water swimming beaches. He said although Edmonds beaches would not be affected as they were saltwater beaches, many other areas in Snohomish County would be affected by this proposal. With no further business, the Council meeting was adjourned at 9:55 p.m. uA Y HA 'SON, MAYOR NORA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes April 25, 2000 Page 20 G AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00. -10:00 P.M. APRIL 25, 2000 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 APRIL 18, 2000 (C) APPROVAL OF CLAIM CHECKS #35953 THROUGH #40597 FOR THE WEEK OF APRIL 17, 2000, IN THE AMOUNT OF $117,178.34. APPROVAL OF PAYROLL CHECKS #28026 THROUGH #28125 FOR THE PERIOD APRIL 1 THROUGH APRIL 15, 2000, IN THE AMOUNT OF $446,118.58. (D) REPORT ON THE GENERAL FUND AND OTHER SELECTED FUNDS FINANCIAL POSITION FOR THE MONTH ENDED MARCH 2000 (E) AUTHORIZATION FOR USE OF EAC FUNDS FOR ARTS COMMISSIONERS TO ATTEND WASHINGTON CULTURAL CONGRESS, APRIL 30 — MAY 1, 2000 (F) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE GREATER EDMONDS CHAMBER OF COMMERCE FOR THE TASTE OF EDMONDS (G) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE EDMONDS -SOUTH SNOHOMISH COUNTY HISTORICAL SOCIETY FOR THE EDMONDS SUMMER MARKET (H) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE EDMONDS ARTS FESTIVAL ASSOCIATION FOR THE ARTS FESTIVAL (1) AUTHORIZATION FOR THE MAYOR TO SIGN CONTRACT WITH THE GREATER EDMONDS CHAMBER OF COMMERCE FOR THE FOURTH OF JULY PARADE AND FIREWORKS DISPLAY (J) AUTHORIZATION FOR THE MAYOR TO SIGN AGREEMENT WITH KING COUNTY FOR RECIPROCAL SEWAGE TREATMENT (K) APPROVAL OF NEW PLANNING DIVISION JOB DESCRIPTIONS (L) PROCLAMATION IN OBSERVANCE OF NATIONAL DAY OF PRAYER ON MAY 4, 2000 (M) PROCLAMATION IN OBSERVANCE OF THE HOLOCAUST (N) PROPOSED ORDINANCE AMENDING THE PROVISIONS OF THE EDMONDS CITY CODE BY THE REPEAL OF CHAPTER 2.80, AND ADOPTING A NEW PURCHASING POLICY (0) PROPOSED ORDINANCE AMENDING THE PROVISIONS OF EDMONDS CITY CODE SECTION 3.24.020, PARAGRAPH A, TO REDUCE THE TAX ON BINGO AND RAFFLE PROCEEDS TO FIVE PERCENT IN ACCORDANCE WITH PROVISIONS OF WASHINGTON STATE STATUTE Page 1 of 2 CITY COUNCIL MEETING AGENDA APRIL 25, 2000 Page 2 of 2 3. AUDIENCE COMMENTS. (3 Minute Limit Per Person) 4. (60 Min.) BUDGET WORKSHOP 5. _ (15 Min.) 'DISCUSSION OF COUNCIL CONTINGENCY FUND 6. (30 Min.) DISCUSSION OF EDMONDS LIBRARY BOARD RECOMMENDATION FOR FUTURE FUNDING OPTIONS 7., (30 Min.) REPORT ON FIRE CONSOLIDATION EFFORTS 8. (15 Min.) REPORT ON COMMITTEE MEETINGS 9. ( 5 Min.) MAYOR'S REPORT 10. (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 46 Delayed telecast of this meeting appears the following Wednesday at noon and 7: 00 p. m., as well as Friday and Monday at noon: on Channel 46 u