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07/25/2000 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES JULY 259 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 (arrived 7:35 p.m.) Jim White, Councilmember Lora Petso, Councilmember Christopher Davis, Councilmember ELECTED OFFICIALS ABSENT Dave Orvis, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Robin Hickok, Police Chief Peggy Hetzler, Administrative. Services Director Brent Hunter, Human Resources Director Rob Chave, Planning Manager Don Fiene, Assistant City Engineer Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER DAVIS, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett was not present for the vote.) 2. CONSENT AGENDA ITEMS Council President Miller requested Item B be removed from the Consent Agenda. Councilmember Davis requested Item G be removed, Councilmember White requested Item F be removed and Councilmember Earling requested Item E be removed. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCIL PRESIDENT MILLER, FOR APPROVAL ' OF THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett was not present for the vote). The agenda items approved are as follows: (A) ROLL CALL ro v e (C) APPROVAL OF PAYROLL CHECKS #30587 THROUGH #30563 FOR THE PERIOD D LPly', ol] JULY 1 THROUGH JULY 15, 2000, IN THE AMOUNT OF $452,055.05 hecks eneral (D) REPORT ON THE GENERAL FUND AND OTHER SELECTED FUNDS FINANCIAL and I POSITION FOR THE MONTH OF JUNE 2000 Edmonds City Council Approved Minutes July 25, 2000 Page 1 [1 1 Item B: Approval of City Council Meeting Minutes of July 18, 2000 Council President Miller requested the following revisions to the minutes: • Page 15, replace the second sentence in the `first full paragraph with "Chief Tomberg disagreed, questioning how a paramedic at Fire Station 17 would not provide quicker service to residents of the bowl area As far as level of service, if there is a paramedic at Fire Station 17, they are going to get there sooner." • Page 12, first sentence in the last paragraph, revise to read "Mayor Haakenson indicated he his understanding that the Council President would write a letter to Lynnwood expressing the Council's concerns. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER DAVIS, FOR pprove APPROVAL OF ITEM B AS AMENDED. MOTION CARRIED UNANIMOUSLY. 718 (Councilmember Plunkett was not present for the vote.) The agenda item approved is as follows: inutes (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF JULY 18, 2000 Item E: Renort on Bids Received for the City Council Chambers Audio System and Award of Contract to Audio Visual Frontiers ($49,047.37, Including Sales Tax) Councilmember Earling said he understood additional options would be necessary to operate the system that would drive the cost above the budgeted $50,000. Assistant City Engineer Don Fiene said there was a better taping technology available that would cost more but there would be no problem operating the system as bid. Councilmember Earling asked if additional software would be required to operate the system. Mr. Fiene replied no. City Clerk Sandy Chase explained she attended a demonstration yesterday with a vender for a system that recorded on CDs. She said the concept of recording on tapes was an older technology. Although Lanier, the manufacturer of the existing system, was included in the bid to provide a new recording device, they were actually leaving the recording business. She said Lanier indicated they would provide support through the life of the system they provide. The vendor whose demonstration she attended offered a different technology but at a considerably higher cost. Councilmember Earling requested staff provide more information. Mayor Haakenson suggested this item be removed from the agenda and placed on a future agenda along with further information. Councilmember White suggested consideration be given to electronic recording (versus analog cassettes), commenting a great deal more information could be stored on a disk. COUNCILMEMBER EARLING MOVED, SECONDED BY COUNCIL PRESIDENT MILLER, TO TABLE ITEM E. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett was not present for the vote.) The following agenda item was tabled: udio (E) REPORT ON BIDS RECEIVED FOR THE CITY COUNCIL CHAMBERS AUDIO System SYSTEM AND AWARD OF CONTRACT TO AUDIO VISUAL FRONTIERS ($49,047.37, INCLUDING SALES TAX) Item F: Proposed Ordinance Amending the Provisions of the Edmonds City Code Chapter 3.24 Taxing and Regulation of Gambling to Enact a New Section 3 24.015 Prohibiting Cardrooms as Commercial Stimulants, Setting a Sunset Date of Six Months in Order to Provide for an Effective Period of Study, and Fixing a Time When the Same Shall Become Effective. Councilmember White requested the following changes be made to the proposed ordinance: Edmonds City Council Approved Minutes July 25, 2000 Page 2 • Page 1, first line, "WHEREAS, the City of Edmonds has —not -and does not currently have a cardroom gambling operating and, although..." • Page 1, last line, second paragraph, change "house banked cardrooms ". • Page 1, last paragraph, "...hereby amended by the enactment of a new Section 3.24.015 House Banked Cardrooms as established under RCW 9.460282 as a Commercial Stimulant shall be prohibited." • Page 2, new Section 3.24.015 to read "House Banked Cardrooms, as established under RCW 9.46 0282 as Commercial Stimulants shall be prohibited within the City of Edmonds." COUNCILMEMBER WHITE MOVED, SECONDED BY COUNCIL PRESIDENT MILLER, TO APPROVE THE ORDINANCE AS AMENDED. MOTION CARRIED UNANIMOUSLY. (Councilmember Plunkett was not present for the vote). The agenda item approved is as follows: (F) ORDINANCE NO. 3319 AMENDING THE PROVISIONS OF THE EDMONDS CITY rd# 3319 CODE CHAPTER 3.24 TAXING AND REGULATION OF GAMBLING TO ENACT A and I NEW SECTION 3.24.015 PROHIBITING HOUSE BANKED CARDROOMS AS [Rooms COMMERCIAL STIMULANTS, SETTING A SUNSET DATE OF SIX MONTHS IN ORDER TO PROVIDE FOR AN EFFECTIVE PERIOD OF STUDY, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. Item G: Proposed Ordinance Amendine the Edmonds Communitv Development Code by the Adoption of a New Chapter 17.65 Limited Outdoor Display of Merchandise, as well as amending Section 16.45.030 Operation Restrictions BN Zone; Section 16.50.030 Operating Restrictions CW Zone; and Section 16.60.030 Operating Restrictions CG Zone; and Fixing a Time When the Same Shall Become Effective. Councilmember Davis advised he had excused himself from the discussion /decision regarding this item and would abstain from the vote. COUNCIL PRESIDENT MILLER MOVED, SECONDED BY COUNCILMEMBER WHITE, FOR APPROVAL OF ITEM G. MOTION CARRIED, COUNCILMEMBER DAVIS ABSTAINED. (Councilmember Plunkett was not present for the vote.) The agenda item approved is as follows: (G) ORDINANCE NO. 3320 AMENDING THE EDMONDS COMMUNITY DEVELOPMENT rd# 3320 CODE BY THE ADOPTION OF A NEW CHAPTER 17.65 LIMITED OUTDOOR Outdoor DISPLAY OF MERCHANDISE, AS WELL AS AMENDING SECTION 16.45.030 Dis lay OPERATION RESTRICTIONS BN ZONE; SECTION 16.50.030 OPERATING RESTRICTIONS CW ZONE; AND SECTION 16.60.030 OPERATING RESTRICTIONS CG ZONE, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. 3. AUDIENCE COMMENTS Ellen Ernst, 702 7th Avenue S, Edmonds, on behalf of the Edmonds Police Foundation, invited the public to participate in the fourth annual Edmonds Challenge, sponsored by the Edmonds Police Police Foundation and several local businesses including Premiere Blue Cross, Harbor Square Athletic, Arnie's Founda- I Restaurant, City Bank, Edmonds Bingo, Poulsbo RV, Spee Construction and Edmonds Home and Loan. ion She said the Edmonds Challenge, a running and walking event designed for family participation with a 2- mile and a 4 -mile course, was scheduled for September 8, check -in at 5:45 p.m. and races to begin at 7:00 p.m. Registration fees are $20 in advance, $25 the day of the race and $30 per family of 3 or more. The start and finish line are at City Park; refreshments and entertainment will be provided. She said another event, Dunk -a- Cop- Not -a- Doughnut, sponsored by the Police Foundation and Edmonds Police Department Youth Services, would take place during the Taste of Edmonds, August 11 -13. In addition, a Edmonds City Council Approved Minutes July 25, 2000 Page 3 garage sale was scheduled for August 26 and 27 at the Red Barn next to Edmonds Lumber. Anyone with donations for the garage sale or questions regarding other events was asked to contact Sgt. Debbie Smith at (425) 771 -0284. Roger Hertrich, 1020 Puget Drive, Edmonds, pointed out the ferry traffic this weekend was backed up Design to Wells Fargo at 9th Avenue in Westgate but no traffic control was provided. He encouraged the City to uidelines address this problem. Regarding the update and work session with Cascade Design on tonight's agenda, Mr. Hertrich directed the Council's attention to the illustration on page 20 which indicates the height limit is actually 30 -feet. He expressed concern with a proposal to reduce the required parking for new construction. He was also concerned with the apparent lack of opportunity for public input in the process to revise the Design Guidelines. He was particularly concerned with future view blockage. 4. UPDATE AND WORK SESSION WITH CASCADE DESIGN COLLABORATIVE REGARDING DESIGN GUIDELINES Eric Schmidt, Cascade Design Collaborative, explained after meeting with the ADB, they asked staff Design to provide 4 -5 examples of recent projects that had gone through the process so they could consider how IGuidelinesl they met the goals of the existing guidelines and how the projects could be improved with new regulations. After meeting with the ADB in June, a list was created of ten items the ADB asked to have addressed in the design guidelines. He explained the list included ensuring the design guidelines were crafted on a district -by- district basis, responded to the unique character /needs of each district, improved on open space, landscape buffers and parking, and addressed height. He emphasized no change in the height regulations were proposed, the 25 -30 foot maximum was retained in the design guidelines. He recalled an issue was raised in the Cedar River study regarding the potential for tradeoffs, such as allowing height above 30 -feet and transferring the height to one side of the parcel to protect a view corridor on the other side. If the Council requested, this issue could be reviewed further. Mr. Schmidt explained the intent of the design guidelines was to 1) reduce and simplify the design guidelines by consolidating the design guidelines currently in several documents into one document, 2) organize the regulations for different neighborhoods in a pattern that began with larger scale issues, and 3) provide a menu for the designer so that smaller projects had fewer requirements than larger projects. He explained a project under 5,000 square feet perhaps would not have as many requirements, as the building would be consistent with size and character of existing buildings. A mid -size building would be required to have more design modifications to ensure it fit with the existing smaller scale buildings. A larger building, over 12,000 square feet, would have many more design regulations. He said by providing a range, there was incentive for the designer to consider developing smaller projects that allowed the buildings to fit better with the existing buildings. Mr. Schmidt explained they have begun to identify the regulations that would be required for small, medium and large buildings. In order to do that, they considered existing projects that went through the ADB process and considered how the buildings might be improved via a menu for small, medium and large buildings to achieve better designs. He advised the next meeting with the ADB was August 9, the second meeting with the Council was August 22 and a public open house would be held in mid - September. He assured the public was always welcome at ADB and Council meetings. He said their intent was to allow the business community and public to review the document for a period of time before it was approved. They anticipated returning to the ADB and Council in October and the final document would be circulated from October through year -end before seeking approval from the Council. Edmonds City Council Approved Minutes July 25, 2000 Page 4 Jennifer Monday, Cascade Design Collaborative, reviewed several recently developed projects, commenting they were unaware whether the designs were approved as the plans were drawn or as revised by the ADB. She reviewed a commercial building in the downtown area (between a medium and small project) which due to its fairly large presence on the street, should provide some pedestrian - oriented feeling. She said the design of the fagade as proposed was fairly flat and the building fairly boxy. She displayed their revised drawing of the building using medium -size building requirements illustrating modulation, roof articulation and improving the street presence by reducing the double -wide driveway. She said one of the requirements under consideration would be limiting vehicular access to the alley when reasonable or providing one -way circulation when alley access was not feasible. Ms. Monday reviewed a large -scale commercial project on an auto - oriented street pointing out the desire for the building to be more pedestrian friendly and less auto - oriented. Their revisions would push the building up to the street and require a more generous pedestrian entry. Dennis Tate, Cascade Design Collaborative, commented by pushing the building closer to Aurora and placing most of the parking in the rear, the building was less dominated by parking. He said a small building element on the Aurora side of the building in the original drawings met some of the building modulations for large buildings but they suggested there be additional modulation, canopies, awnings, or entrance features to define the location of the front door. He pointed out the location of the front door was also an issue with the previous building Ms. Monday reviewed. Mayor Haakenson asked if the building was setback from the street in response to setback requirements. Mr. Schmidt answered the setback on Aurora was not 60 feet but double loaded parking in front of buildings was standard. Mr. Tate reviewed a multi - family residential project, commenting the building. designs were fairly attractive and met many of the building requirements they identified such as building modulation, front door location, windows, roof shapes, etc. However, by making minor modifications to the site plan, relocating some parking to the rear of the buildings and varying building locations on the site, they were able to capture some usable open space that was previously relegated to perimeter plantings and provide a more identifying corner that contributed to the City's image. Ms. Monday reviewed a small multi - family project, one with the need to address the standard issue of driveways that were easily accessible from the street. In this instance, both alley and street had parking. The goal in revising the drawings was to consolidate parking on the alley side, limit curb cuts on the sidewalk edge, highlight the front entry and create some open space. She reviewed another small multi- family project with similar constraints that placed the parking on the backside to allow the creation of front yards. Mr. Tate observed a number of multi - family projects in the City were 3 -story "massing out the box" with a 4:12 sloping roof to allow the 30 -foot height limit and in some cases dropping the first floor below grade to accommodate the 30 -foot height. He commented builders and architects could be fairly creative in finding ways to get around design guidelines; therefore, the guidelines needed to be specific enough to describe the type of public facades that are desired. Councilmember Earling said one of the challenges builders indicated they face was the need to provide the maximum number of units on the site due to the cost of the land. He asked how the design guidelines would preclude /restrict the potential return on the property. He commented if developers could not realize a sufficient return, there would be more lot line to lot line boxes, a design many people were Edmonds City Council Approved Minutes July 25, 2000 Page 5 frustrated with because the buildings all looked the same. Mr. Tate said in communities that have adopted design guidelines, it was not uncommon to hear comments from developers that it was becoming increasingly hard to build so they had to max out the site. He said there were trade -offs between what developers could do and what the guidelines could provide. He acknowledged the height limit was an issue and although a 30 -foot height could be realized with a 4:12 pitch roof, that roof was still fairly flat. Mr. Schmidt said their intent was to identify development for their examples that were good and bad. Mr. Tate said consideration had been given to requiring modulation or a lower roof height to provide a transition between single family residential area and a multi- family residential area. Another concept under consideration was a requirement for a 8:12 roof pitch for sides that faced a public street and still allow 4:12 pitch over the majority of the footprint but provide dormers, balconies, etc. Another concept to provide transition between a multi- family area and a single family area would be different housing types such as townhomes, cottages, small single family homes, row houses, etc. Mr. Schmidt summarized they considered examples that had been approved by the ADB, looked at how they could better address the issues, looked at how the existing guidelines do not differentiate between small, medium and large projects, and identified issues in the code that need to be addressed to make the design guidelines more effective. He said one method of changing the character of a the community may be to require smaller projects to have tandem garages (12 feet wide versus 24 -feet 'wide) and require parking to be in the rear for larger projects which would dramatically change the streetscape. He said their intent was to modify the existing guidelines, not make them more stringent, but clarify how they could be used and how they would be applied to different scale projects. Councilmember Earling recommended architects/builders be included in the process to determine how the proposed guidelines would impact them. Mr. Tate advised the intent was to hold interviews with builders /architects in the community to discuss their experience with the guidelines. Mr. Schmidt referred to the late August meeting on the schedule with downtown property owners and City business groups to gather input from the developer and property owners' perspectives. He said the intent was to have 3- dimensional sketches and /or simple models at the meetings and test the proposed design guidelines on actual projects. Councilmember Earling suggested a variety of settings where builders /architects could provide input, both interviews and group discussions. Councilmember Plunkett endorsed the concept of providing 3- dimensional models to assist those unfamiliar with the architectural terminology. Councilmember Earling asked how the public process would occur. Mr. Schmidt answered one possibility would be to have a formal presentation and break into groups to discuss certain aspects such as site planning, buffers, costs, etc. Councilmember Earling referred to Mr. Hertrich's comments, recommending the opportunity for public input be structured so that the public's views could be voiced to allow a candid exchange of ideas. Council President Miller pointed out the majority of the Council felt views were very important to the character of the community and did not want increased height limits to be considered. He recommended the revisions to the design guidelines take the ambiguity out of the code to allow easier interpretation by architects, boards, staff and the Council. Councilmember Petso referred to the objectives on page 20, one of which stated "downtown height limits may only be exceeded if no views from the public open space are blocked" and cautioned there was little public open space designated on the zoning map. She referred to the statement "heights may be Edmonds City Council Approved Minutes July 25, 2000 Page 6 increased as an incentive to provide interesting roofscapes" and cautioned this concept got the City into trouble before. She agreed with the need to clarify the design guidelines rather than including broad objectives that may be misinterpreted. She referred to a statement regarding changing parking requirements such as lower residential parking requirements. Mr. Schmidt clarified one alternative may be to have maximum parking requirements versus minimum requirements. Councilmember Petso cautioned that requiring only one parking space per unit may result in one vehicle per unit parking on the street. Councilmember Petso expressed concern with the statement "to encourage interconnected streets" and allowing mechanical equipment on roofs to exceed height limits. She recommended a definition package be developed. Mr. Schmidt explained the issue regarding parking would not be resolved via the design guidelines; staff was addressing parking themselves. He said one method would be to allow developers to decide whether to provide one or two parking spaces would be to establish a maximum versus a minimum parking requirement. The developer could then "take the risk" regarding how many parking spaces per unit to provide. Councilmember Petso cautioned it may not be the builder taking the risk regarding how much parking to provide, it may be the neighbors or businesses whose parking was eliminated. Councilmember White asked if the proposal was to create different guidelines for different zoning categories in the City. Mr. Schmidt answered yes, in areas where there were marked differences. For example on the Hwy. 99 corridor, the regulations regarding blank walls would be different than the regulations for property in the downtown area. Councilmember White asked how the boundaries would be defined. Mr. Schmidt answered some areas were defined in the Comprehensive Plan. Councilmember White observed the different areas would be defined by the existing zoning versus creating design zones. Mr. Schmidt said they had not yet determined boundaries. Councilmember Davis inquired about different thresholds for review by staff and the ADB. Mr. Schmidt explained one of the findings from the Cedar River study and comments from the ADB was that staff be able to review some smaller projects, particularly those that were not built to the maximum potential of the site. If the guidelines were crafted adequately and the threshold defined well enough, staff could review those projects without referring them to the ADB. Mr. Schmidt advised they would continue to refine the schedule including scheduling meetings with the building /architectural community. He suggested their next update to the Council be advertised to the public. 5. UPDATE ON PUBLIC SAFETY COMPLEX Mayor Haakenson reported the project had been progressing well over the past four weeks, steady gains Public Safety have been made in paving, curbs, sidewalks, and drainage. He said traffic on 5th and 6th Avenue had Complex been disrupted and expressed his appreciation for the neighbors' cooperation. He said it appeared the project would be completed approximately September 30. 6. UPDATE ON SELF - INSURANCE HEALTH BENEFIT FUND elf Insurance I Human Resources Director Brent Hunter displayed a graph illustrating revenue, stop loss, administration, claims and the balance. He recalled -the Council requested a monthly report approximately four months ago when this fund began to experience problems. He said claims rose in June to $174,000 causing the Edmonds City Council Approved Minutes July 25, 2000 Page 7 reserve to drop from $128,650 to $81,610. He pointed out the goal was to maintain reserves of $250,000. He explained although there was only one major claim this year of approximately $78,000, there were several claims nearing $40,000. Mr. Hunter said the insurance committee met on July 24 to discuss the future of the self - insurance health fund. The consultant, Dick Charles, projected cost increases for the self - insurance fund ranging from 21 % to 24% for 2001. His projection for incurred but not reported claims (claims the City would still be responsible for paying if the City ceased the self - insurance, approximately three months) revealed claims from March 31 to June 31 were $181,000. This is less than the $250,000 figure that was anticipated would be necessary to pay incurred but not reported claims. Mr. Hunter explained when he contacted AWC to determine the process for re- entering the trust, he was told the City needed to send a letter to the trust board (any group larger than 250 people required board approval), along with approximately two years of claims experience. He was also informed AWC was projecting an 8% increase in premiums in 2001 for Regence. Those with Group Health would experience an approximate 18% rate increase if the City returned to AWC because the City's rates for Group Health were currently lower than AWC. A survey of individuals on the insurance committee indicated the majority were in favor of the lowest premium cost but they did not want a reduction in benefit rates. He said the fire union supported remaining self - insured and all unions supported maintaining the well -baby services. Mr. Hunter said the consultant also informed the City that Regence recently created new underwriting rules that require groups over 50 employees who want to join a trust group such as AWC to remain experience rated for approximately three years. That would mean the City would retain its in self - insured status, experience wise, for three additional years before acquiring AWC's universal rating. He said this information needed to be verified. If the additional contingencies were imposed on the City upon returning to AWC, some additional research would be necessary to determine whether it was better to remain self - insured or return to the trust. Mr. Hunter reported the insurance committee recommended the City write a letter to AWC requesting to return to the trust and allow AWC to indicate whether the City could return without any special contingencies or what those contingencies would be. The Committee's next meeting was scheduled for mid - August, allowing sufficient time to return to the Council prior to the September 2 AWC board meeting when a decision would be made whether to allow the City to return and providing sufficient time to allow the change before the play year was up. Councilmember Plunkett asked who was on the committee and whether the committee was recommending the City begin the process of ending self - insurance. Mr. Hunter answered the committee recommended the City write a letter to the AWC trust to start the process of determining whether there would be any contingencies for the City to return to the trust. If there were no contingencies, the committee felt that would be the lowest cost and therefore what they would favor. He explained the committee was comprised of Councilmember Petso, one union representative from each bargaining unit, and one non - represented employee. Councilmember White asked if what the coverage difference would be if the City returned to the AWC trust. Mr. Hunter advised the self - insurance basically used the AWC plan, therefore 97 % -98% of the self - insurance plan was the same as AWC. He said a few benefits were added in the three years the City was self - insured such as the $250 wellness benefit and the vision coverage was varied. Edmonds City Council Approved Minutes July 25, 2000 Page 8 Councilmember White asked if the well -baby benefit would be eliminated by returning to the AWC trust. Mr. Hunter said he did not believe AWC offered a well -baby service but the City could address this in another manner. 7. DISCUSSION OF LEVY LID LIFT Levy LID Council President Miller explained the Council and the Long Range Financial Taskforce had considered Lift this item previously. It was last considered by the Council on April 24 (minutes of that meeting were included in the Council packet). At that time, discussion centered on annexation, the recommendation of the Library Board, but the Council took no action other than to ask staff to determine election dates. He explained he added this item to the agenda because the first potential election date was the primary election, requiring an ordinance to be passed by August 4 if the Council wished to place an issue on that ballot. Since the last time the Council discussed this issue, the Mayor also held a Town Meeting where a great deal of feedback was provided. Councilmember Petso asked if the forecast requested by Councilmember Orvis was included in the packet. Administrative Services Director Peggy Hetzler answered it was Scenario #6. Councilmember White inquired about the status of Councilmanic bonds. Ms. Hetzler answered the last information provided by Bond Counsel was the City could still issue Councilmanic bonds, however, it would be at a much higher interest rate because most major bond insurers were refusing to insure issues in the State of Washington until I -695 was resolved. Councilmember White asked what the interest rate would be. Ms. Hetzler answered the market rate would be 5 -6 %. The City usually purchased bond insurance to increase the City's rating for that bond issue from A to AAA, reducing the interest from 6% to 5 %. For Councilmember White, Ms. Hetzler said a levy lid lift required a simple majority with no turnout requirement. Councilmember Petso observed Scenario #6 would maintain the library in the General Fund without seriously depleting the cash carry forward until 2004. Ms. Hetzler agreed with that interpretation. Councilmember Petso observed there was no rush to establish a levy lid lift this year unless something else happened. Ms. Hetzler answered it would depend on the Council's comfort level with the anticipated increase factor indicated by Councilmember Orvis and the Council's desire to cut $600;000 in other expenditures from the budget. She said all past scenarios assumed the status quo that existed now. She recalled the presentation last week regarding building and street maintenance and the heavy subsidy from the General Fund for those funds and said the deficits in those funds were not built into Scenario #6. Councilmember Petso observed any additional revenue from economic development would be added to the figures in Scenario #6. Mayor Haakenson pointed out the public should be aware Scenario #6 estimated total revenues at twice the previous amounts and required $600,000 in additional cuts. which would require deep cuts throughout every department of the City in 2001. He said Scenario #6 also assumed a 3% property tax increase each year throughout the 5 -year projection. He emphasized that although Scenario #6 kept the library in the General Fund, there were a number of factors to be considered. Councilmember Plunkett said although Councilmember Orvis suggested a higher growth rate than in the past in Scenario #6, the rate was a conservative growth rate and below historical fact. Ms. Hetzler Edmonds City Council Approved Minutes July 25, 2000 Page 9 explained historical growth rates had been abandoned in favor of normalized growth rate due to the need to remove revenue the City has received in the past such as sale tax equalization and MVET. Growth rates were then determined by a composite of the remaining revenues. She said 2% was conservative but she was somewhat uncomfortable with 4% because the projections assumed the State Legislature would continue to provide a portion of the MVET that the City lost. Although that was the stated intent in the adopted legislation, there was no ongoing revenue source to provide that funding and if the funds were not re- appropriated in the next biennium, the funding would disappear. If those funds were lost, it would offset the additional revenue increase Councilmember Orvis anticipated in Scenario #6. Councilmember Plunkett pointed out this was only one scenario of a number of scenarios and said the Council was a long way from making a decision about the library based on any scenarios. Councilmember White asked when was the next opportunity to put an issue on the ballot if not at the general election. Ms. Hetzler answered the City could coordinate its election with school levy elections in February and March. Councilmember White asked if there was an Edmonds School District levy planned for February/March. Ms. Hetzler answered it did not necessarily have to be Edmonds School District, it could be any Snohomish County school district levy. She said if the Council wished to consider an annexation election, it needed to be done as a special election before June; the levy lid lift election could be done at any time. At Mayor Haakenson's request, Ms. Hetzler reviewed the cost of an election. A measure on the primary election was estimated to cost $1 per registered voter (25,000 registered voters at a total cost of $25,000). The general election was estimated to cost $0.50 per registered voter or $12,000 - $13,000.. A special election ranged from $2 -$3 per registered voter for a total cost in excess of $64,000. Council President Miller recalled the Council discussion on April 25 included the pros and cons of annexation and a levy lid lift. Ms. Hetzler explained annexation was assessed at $0.50 per $1,000 and a levy lid lift was $0.35 per $1,000. Council President Miller asked if the levy lid lift amount could be adjusted to compensate for changes in the SnoIsle contract. Ms. Hetzler explained if the levy lid lift duration was structured to coincide with the duration of the library contract, the levy lid lift could be structured to increase according to the contract increase. However, if a permanent levy lid lift was adopted at $0.35 per $1,000, that amount would remain until changed via another vote. She said there were numerous ways a levy lid lift could be structured to allow increases. She said much would depend on establishing a long term fixed duration contract with SnoIsle with anticipated cost increases. Councilmember White asked when the Council needed to act on this to opt in for an additional year under the current SnoIsle contract. Mayor Haakenson answered a decision would be required by the first week in January 2001. Councilmember White observed the Council needed to make a decision. He said the City had the option of renewing the library contract but that seemed cost prohibitive. He said the voters had spoken, indicating they wanted an opportunity to actively participate in making decisions regarding government spending and the City needed to give voters an opportunity to choose whether to fund the library. An election prior to November would cost approximately $13,000 but after that time, it would cost $64,000, a difference of $51,000. Therefore, the Council needed to decide whether to put this issue on the general election ballot. He recommended this topic be maintained as a weekly agenda item if necessary so Councilmembers who needed further information would be able to reach a decision. Edmonds City Council Approved Minutes July 25, 2000 Page 10 Councilmember Earling said Councilmember Orvis and he had been considering a variety of long -range financial scenarios such as long term funding for roads and deferred maintenance and how bonds could address those expenditures. Before voting on a library bond issue, he recommended the Council consider a menu of financial planning decisions. He said Councilmember Orvis and he would be reviewing all the financial issues, summarizing them and making a recommendation regarding some of them at the Long Range Financial Taskforce meeting on Wednesday, August 2. They could then bring their recommendations to the Council for consideration and a determination could be made whether to place a measure on the November ballot, whether for the library, capital projects, streets, etc. If a ballot measure was deemed necessary, he agreed it would be appropriate to place it on the November ballot due to the cost savings. Councilmember Plunkett agreed considering other long term costs was also important and they could possibly be included in a general bond but said a decision regarding funding the library needed to be made. He favored stabilizing the library funding and a possible alternative was taking it out of the budget so it did not compete with other needs. Councilmember Petso agreed with Councilmember Earling and did not favor making a decision tonight. She said if there was a $1 million shortfall and those funds could be realized via Public Works Trust fund monies, the debt service would only be $40,000 per year. She cautioned the City would not be successful in achieving a positive public vote for an "enormous tax increase," whether for the library, public safety, roads, or any other item, unless it could be documented that the funds were needed. Until the City could do that, she said the voters would not support a bond measure. Council President Miller said he placed this item on the agenda because of the timeline for the primary election. He preferred waiting until the November general election. He agreed with Councilmember Earling regarding the need to develop a plan to consider other City's needs but cautioned again waiting until August next year to make a decision. He looked forward to the recommendations from the Long Range Taskforce. Councilmember Davis agreed with Councilmember Plunkett that the Council would likely be back at this same point but agreed the Council needed to consider other needs as Councilmember Earling indicated and had the time to do so. He asked if all the information, could be provided in time to allow the Council to make a timely decision. Councilmember Earling advised the goal of the Long Range Financial Taskforce was to review all issues at the August 2 meeting and bring a recommendation to Council on some issues and a menu of options for other issues. He requested the Long Range Financial Task Force's recommendations be scheduled for a Council meeting in late August. 8. MAYOR'S REPORT Budget Mayor Haakenson requested Council President Miller appoint a Councilmember to serve on the budget Review review team. Team Mayor Haakenson thanked Council President Miller and Councilmember White for participating in interviews for the Community Services Director and Development Services Director positions. Log Cabin Mayor Haakenson pointed out the log cabin, located at 5th and Bell, was in the process of being renovated. He explained the Log Cabin Committee raised over $60,000 to give the City a gift of the repair of the log cabin's foundation. Edmonds City Council Approved Minutes July 25, 2000 Page 11 9. INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS Lershi Council President Miller reported he was contacted by a downtown property owner who wanted to explore a public - private partnership for a South County convention center /hotel/parking garage. He said this item was tentatively scheduled on the August 8 Community Services Committee agenda. He planned to assist the property owner with the presentation including the possibility of HUD grants, private development funds and assistance from the City (not financial assistance). Councilmember Petso advised she participated in the self - insurance committee meeting whose conclusions were reported by Human Resources Director Brent Hunter. She also participated on the otel/Motel I Hotel/MoteI Tax Advisory Lodging Committee who made a recommendation to provide some funding ax ommittee for the log cabin repair. This recommendation was in the process of being reviewed by the City Attorney and would be placed on a future Consent Agenda. The Committee was also reviewing the 2001 budget; items under consideration were reducing the Sister City contribution and adding funding to the log cabin and flower programs. As the Committee hopes to finalize the budget at their next meeting, she encouraged anyone with input regarding the use of hotel /motel tax funds to contact her. At Mayor Haakenson's request, Councilmember Petso explained the Hotel /Motel Tax Advisory Committee voted unanimously to provide $6,800 to the log cabin repair project to ensure the project was completed satisfactorily. She said the Committee may make an allocation of $1,00042,000 per year to fund ongoing maintenance of the log cabin. Mayor Haakenson clarified these were not monies from the General Funds but monies collected from hotel /motel tax that must be used to benefit tourism. Councilmember Plunkett advised the Edmonds Alliance for Economic Development (EAED) elected a ce for new president, Jack O'Harrah, Edmonds Community College President. He said a display of local mic businesses would soon be installed on the corner of Main Street to assist in directing visitors to these t o e businesses.. He advised a report regarding the EAED's priorities was available from the Chamber of Commerce. Councilmember Earling reported the Sound Transit Board would be making a decision on Thursday, July Duna 27 regarding the alignment from the University of Washington to Northgate. Commuter rail was on ransit schedule to begin in the south corridor (Tacoma to Seattle) on September 18 and approximately a year later in the north corridor. Both Community Transit and Sound Transit were beginning work on their legislative agendas for next year. Councilmember Davis advised the Edmonds Police Foundation was sponsoring .a dunk tank at the Taste of Edmonds that would feature members of the Police Department as well as Mayor Haakenson. With no further business, the Council meeting was adjourned at 9:00 p.m. ARY H KENSON, ,MAYOR ANDRA S.-CHASE, CITY CLERK Edmonds City Council Approved Minutes July 25, 2000 Page 12 AMENDED 7121 w} AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. JULY 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 JULY 18, 2000 (C) APPROVAL OF PAYROLL CHECKS #30587 THROUGH #30563 FOR THE PERIOD JULY 1 THROUGH JULY 15, 2000, IN THE AMOUNT OF $452,055.05 (D) REPORT ON THE GENERAL FUND AND OTHER SELECTED FUNDS FINANCIAL POSITION FOR THE MONTH OF JUNE 2000 (E) REPORT ON BIDS RECEIVED FOR THE CITY COUNCIL CHAMBERS AUDIO SYSTEM AND AWARD O CONTRACT TO AUDIO VISUAL FRONTIERS ($49,047.37, INCLUDING SALES TAX) (F) PROPOSED ORDINANCE AMENDING THE PROVISIONS OF EDMONDS CITY CODE CHAPTER 3.2 TAXING AND REGULATION OF GAMBLING TO ENACT A NEW SECTION 3.24.015 PROHIBITING CARDROOMS AS COMMERCIAL STIMULANTS, SETTING A SUNSET DATE OF SIX MONTHS IN ORDER TO PROVIDE FOR AN EFFECTIVE PERIOD OF STUDY, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE (G) PROPOSED ORDINANCE AMENDING THE EDMONDS COMMUNITY DEVELOPMENT CODE BY THE ADOPTION OF A NEW CHAPTER 17.65 LIMITED OUTDOOR DISPLAY OF MERCHANDISE, AS WELL AS AMENDING SECTION 16.45.030 OPERATION RESTRICTIONS BN ZONE; SECTION 16. 50.030 OPERATING RESTRICTIONS CW ZONE; AND SECTION 16.60.030 OPERATING RESTRICTIONS CG ZONE, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE 3. AUDIENCE COMMENTS (3 Minute Limit Per Person) 4. (45 Min.) UPDATE AND WORK SESSION WITH CASCADE DESIGN COLLABORATIVE REGARDING DESIGN GUIDELINES S. (10 Min.) UPDATE ON PUBLIC SAFETY COMPLEX 6. (10 Min.) UPDATE ON SELF - INSURANCE HEALTH BENEFIT FUND 7. (30 Min.) DISCUSSION OF LEVY LID LIFT 8. ( 5 Min.) MAYOR'S REPORT 9. (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.