Loading...
03/27/2001 City Council1 Approve /20/01 Minutes pprove Payroll cks ms for ages EDMONDS CITY COUNCIL APPROVED MINUTES March 27, 2001 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Gary Haakenson in the Council Chambers, 250 5r" Avenue North, Edmonds, followed by the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Dave Earling, Council President Thomas A. Miller, Councilmember Michael Plunkett, Councilmember Lora Petso, Councilmember Dave Orvis, Councilmember Christopher Davis, Councilmember Richard Marin, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Tom Tomberg, Fire Chief Robin Hickok, Police Chief Al Compaan, Assistant Police Chief Duane Bowman, Development Serv. Director Stephen Clifton, Community Services Director Peggy Hetzler, Administrative Services Director Noel Miller, Public Works Director Arvilla Ohlde, Parks and Recreation Director Rob Chave, Planning Manager Dave Gebert, City Engineer Tom King, Facilities Manager Mike Stark, Information Services Coordinator Scott Snyder, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCIL PRESIDENT EARLING, FOR APPROVAL OF THE AGENDA. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Councilmember Miller requested Item G be removed from the Consent Agenda. COUNCILMEMBER DAVIS MOVED, SECONDED BY COUNCILMEMBER MARIN, FOR APPROVAL OF THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF MARCH 20, 2001 (C) APPROVAL OF PAYROLL DIRECT DEPOSITS AND CHECKS #1599 THROUGH #1686 FOR THE PERIOD MARCH 1 THROUGH MARCH 15, 2001, IN THE AMOUNT OF $754,416.03 (D) ACKNOWLEDGE RECEIPT OF CLAIMS FOR DAMAGES FROM GORDON VAN MERE ($160.66), AND RONDA ROHDE ($750,000.00) Edmonds City Council Approved Minutes March 27, 2001 Page 1 Fire Memorial (E) APPROVAL OF DONATION OF FIRE MEMORIAL AMENITY FOR PUBLIC SAFETY Amenity COMPLEX Traffic ngineer (F) APPROVAL OF CONSULTANT CONTRACT AWARD FOR TRAFFIC ENGINEER Services SERVICES Hwy Traffic (H) AUTHORIZATION TO ENTER INTO AN INTERIM MAINTENANCE AND Signal OPERATION AGREEMENT WITH THE CITY OF LYNNWOOD FOR THE EDMONDS' System PORTION OF THE HIGHWAY 99 TRAFFIC SIGNAL SYSTEM Item G: Authorization to Call for Bids for the Woodway Elementary School Walkway and Seaview Elementary School Traffic Calming and Pedestrian Improvements Councilmember Miller asked why the additional appropriation of $142,000 from the cash balance was a better expenditure in 2001 than in 2002. City Engineer Dave Gebert explained this project was originally budgeted in the 2001 and 2002 CIP. He said the funds were in the available cash balance; the amount budgeted in 2002 would be used in 2001. He expected to save money by doing the project in one year versus mobilizing two contracts in two years and said this would result in less disruption. COUNCILMEMBER MILLER MOVED, SECONDED BY COUNCILMEMBER PETSO, FOR Traffic APPROVAL OF CONSENT AGENDA ITEM G. MOTION CARRIED UNANIMOUSLY. The item Calming & approved is as follows: ! Pedestrian Improve- (G) AUTHORIZATION TO CALL FOR BIDS FOR THE WOODWAY ELEMENTARY ents SCHOOL WALKWAY AND SEAVIEW ELEMENTARY SCHOOL TRAFFIC CALMING AND PEDESTRIAN IMPROVEMENTS i 3. AUDIENCE COMMENTS Al Rutledge, 7101 Lake Ballinger Way, Edmonds, suggested the City hold a forum in view of the approximately 14 issues currently facing the City. He described one of the issues, a center being proposed in Everett. Siting of Roger Hertrich, 1020 Puget Drive, Edmonds, referred to the action the Council took regarding siting Churches in of churches in residential zones. He expressed dismay that four members of the Council voted, in effect, Residential to allow regional churches in residential zones. He pointed out a one week delay in the decision could Zones have eliminated the possibility of a regional church in a residential neighborhood. He urged the Council to establish a moratorium on that type of application until the problem was addressed. Regarding Ptility Taxes Agenda Item #7, discussion of potential uses of increased revenues from utility taxes, he commented Monroe provided relief to its residents by adjusting their tax structure. He urged the Council not to view the increased utility taxes as a windfall for the City. 4. REPORT FROM HISTORICAL PRESERVATION ADVISORY COMMITTEE Historical reservation Advisory Darrell Marmion, Historical Preservation Advisory Committee, 216 4th Avenue Edmonds, citizen Committee representative on the Committee, introduced the other members of the Committee, Michael Plunkett (Council), Brad Butterfield (Chamber of Commerce), Virginia Cassutt (Planning Board), Rob Chave (City Staff), Roger Hertrich (citizen), Chuck LaWarne (Historical Society), and Steve Waite (citizen). Mr. Marmion explained the committee was established as a result of an ordinance adopted by the Council in November 2000. The purpose of the committee was to, 1) inventory existing historic structures, sites, markers, and other items of historic significance; 2) review and comment on current City policies in relation to historic preservation; 3) review and comment on what policies, programs, regulations, codes and incentives could be employed to encourage historic preservation; and 4) evaluate the need for a Edmonds City Council Approved Minutes March 27, 2001 Page 2 permanent Edmonds Historic Preservation Commission. The committee was established with a one year charter and was required to make quarterly reports to the Council. Mr. Marmion commented the data collected is available on the Historical`Society's web page, 'www:historicedmonds.oru. Mr. Marmion explained the intent of the committee was not to find ways to restrict the use of property but to identify incentives and education to encourage preservation of historic structures. He said two subcommittees were established, inventory and incentives. The intent of the inventory subcommittee was to determine the number of structures, age, distribution, etc. and how to approach the inventory. The intent of the incentive subcommittee was to research incentives used by other cities. A third subcommittee was established, public education and awareness, whose purpose was to identify ways to increase awareness of historic buildings in the City. Mr. Marmion provided a status report on each of the subcommittees, explaining the inventory committee began with a list of approximately 40 -50 buildings compiled from lists provided by the Historical Society, the Edmonds Historic walk, and other sources. A title company provided a list of properties by year built (the year 1950 and earlier) in the City. He displayed a chart illustrating buildings constructed from 1865 to 1950, commenting the oldest existing building in the City was built in 1878. He said the listing identified approximately 1,100 structures built prior to 1950 existed in the City. Next, the subcommittee considered how the buildings were distributed by year. He displayed a chart illustrating that few pre -1900 structures remained, but large numbers of structures built from 1900 -1930 remained. He said the committee was pleasantly surprised to learn so many historic buildings existed. Mr. Mannion provided a status report on the incentive subcommittee, describing a presentation provided by the Bothell Planning Department regarding the history of Bothell's program. He said there were currently 17 properties on Bothell's local historic registry. He explained the listing of a property on the local registry provided the property owner some code relief, some tax assessment relief, and the prestige of having a historic building. Bothell's presentation indicated their Historic Preservation Board had two functions, inventory and education, and that the purpose of the Board was to preserve structures, not change the character of the city. A presentation was also made to the incentive committee on Certified Local Government (CLG), a State umbrella program that endorses grant requests and tax assessment relief for historic structures. The education subcommittee has been discussing information signs /plaques. Mr. Marmion said next steps for the committee are to review existing City codes with regard to historic preservation, review the inventory list, prepare maps to illustrate how the properties identified are distributed throughout the City, further research the CLG and how it may apply to the City, and investigate methods used by other cities for historic preservation. Councilmember Plunkett commented the committee was surprised by the number of structures built between 1890 and 1930 that still existed and may be deserving of historical consideration. Councilmember Orvis asked what type of code relief and tax incentives were available. Councilmember Plunkett explained some cities allow historic structures, with approval of the Fire Marshal, not to meet the existing code. J 5. JOINT MEETING WITH THE PLANNING BOARD ing the Planning Board members present were John Dewhirst (Chair), Stan Monlux, Bruce Witenberg (Vice ning d Chair), Virginia Cassutt, Joanne Langendorfer, and Jim Crim. Council President Earling explained in addition to discussing issues addressed at the Planning Board retreat and other issues of importance to the Planning Board, he requested the Planning Board provide input regarding how the Council addressed issues forwarded from the Planning Board. Edmonds City Council Approved Minutes March 27, 2001 Page 3 Planning Board Chair John Dewhirst reviewed the Planning Board's accomplishments over the past year, including forwarding the Animal Ordinance and Community Facilities ordinance to the Council; providing recommendations to the Council regarding outdoor dining; addressing the outdoor merchandise ordinance; working with the Engineering Department on a bike plan and master sewer and drainage plan; holding two joint meeting with the Architectural Design Board and producing a draft set of Design Guidelines; holding a workshop on Planned Residential Development; processing a number of rezoning requests; and addressing a number of Comprehensive Plan issues. He said the Council had a good track record of following the Planning Board recommendations in most instances. Planning Board Vice Chair Bruce Witenberg commented the monthly meetings between the Mayor, Council President, and Chairs of the Planning Board and ADB to review progress on recommendations to be forwarded to the Council, issues the Boards were considering, etc. were very helpful. He said Planning Boardmembers were encouraged to contact the Chair with issues to be discussed at the monthly meetings and he encouraged Councilmembers to inform the Council President or Mayor of issues they wished to have discussed. Mr. Dewhirst commented the February 21 Planning Board retreat was worthwhile., The retreat included discussion regarding how to improve communication with staff, staff provided an overview of issues that would be presented to the Planning Board in the 12 -18 months, and the Planning Board and staff developed a list of priorities. He said the creation of the list illustrated the Planning Board has done virtually nothing but provide recommendations on code amendments in the recent past and the Board would like to do more planning. The Board's priorities were, 1) ADB Design Guidelines, 2) ADB process, 3) PRD code amendments, 4) Parks and Recreation Comprehensive Plan update, and 5) Highway 99 / Mixed Use Zone. Regarding Hwy. 99, he explained the Planning Board felt Hwy. 99 had an important role in providing revenue to the City in the future. Mr. Dewhirst asked for Council input regarding the Planning Board's priorities. Council President Earling asked what emerging issues were identified in the PRD regulations as a result of the workshops. Mr. Dewhirst said the current PRD ordinance failings are due to the onerous process. He said consideration was given to expanding the existing PRD code into a wider land use code that would address mixed use, density credits, etc. After further discussion of that concept, several boardmembers were not comfortable with it. When Development Services Director Duane Bowman was hired, he suggested consideration be given to Bothell's PRD ordinance. A residential developer provided a presentation of the trials and tribulations of B`othell's ordinance. The Planning Board then made a decision to return to a residential PRD ordinance that addressed single family and multifamily residential issues. Staff indicated there was interest in an ordinance that took a unified development approach to larger mixed use type parcels. He said plans are to revise the current PRD ordinance into a shorter, less cumbersome process while still providing neighborhoods adequate safeguards and protections. Councilmember Miller commented he was intrigued by the Planning Board's identification of Hwy. 99 as a priority, particularly in view of the newspaper article included in the packet regarding Shoreline's designation of Hwy. 99 as a subarea. He asked if there was anything Edmonds should be doing with regard to Hwy. 99 to match what Shoreline was doing such as fast track permits, tax incentives, etc. to attract businesses. Planning Boardmember Stan Monlux said one of the challenges with Hwy. 99 was establishing a vision for the area. He said there were inconsistencies in the Comprehensive Plan for Hwy. 99 which stressed a transit and pedestrian development as well as the development of a campus atmosphere with park -like surroundings. He said the reality of development may be quite different. Edmonds City Council Approved Minutes March 27, 2001 Page 4 Planning Boardmember Jim Crim said the Planning Board's intent was to seek Council input/direction /guidance regarding Hwy. 99. He noted height limits on Hwy. 99 were similar to the remainder of Edmonds; this may or may, not be suitable for long term development. Councilmember Marin agreed with the need to establish a vision to expand and develop the Hwy. 99 area. He said the development could have the feeling indicated by the Comprehensive Plan (park -like) if development was planned appropriately. Councilmember Plunkett suggested the Planning Board consider what codes /regulations prevented considerable development on Hwy. 99. Councilmember Miller expressed interest in considering any proposition the Planning Board recommended to loosen height restrictions on Hwy. 99. He noted the intent of height restrictions in the bowl area were to preserve views, an unnecessary element on Hwy. 99. He preferred the area would someday be referred to as Aurora Parkway rather than Hwy. 99. Mr. Dewhirst said the Planning Board hoped the City would use its contacts among the Chamber of Commerce, Alliance and property owners to further Hwy. 99 on their agendas. He noted the actions of only the Council and Planning Board would not be enough to get people interested in redevelopment in that area. He pointed out the competition in the Hwy. 99 area due to Shoreline becoming very aggressive regarding redevelopment on Hwy. 99 and Lynnwood's consideration of a city center around the transit center. As development in Shoreline and Lynnwood would take a big chunk of the market that Edmonds was interested in, there was a sense of urgency to begin the process. Mr. Witenberg emphasized the need for a multifaceted approach and said although a vision for the future was needed, the City could not wait until the future arrived to produce the vision. He said the City must start now including involving the business owners, focus groups, etc. to brainstorm the direction. He said reviewing the codes as Councilmember Plunkett suggested was one facet but input from stakeholders was equally as important. He said consideration also needed to be given to how to tie Hwy. 99 to the downtown core to give property owners on Hwy. 99 a sense of being part of the community. Councilmember Petso shared the Planning Board's enthusiasm for focusing on Hwy. 99. She recalled when campaigning for City Council, the question was raised at the Alliance about what was being done on Hwy. 99 and it was clear that Hwy. 99 was not within the Alliance's mission statement. She supported any efforts that would attract businesses and prevent citizens from spending their money elsewhere. Planning Boardmember Virginia Cassutt recalled a study done several years ago, the Main Street Study, and asked whether there was anything in the study regarding linking Hwy. 99 with downtown such as getting businesses on Hwy. 99 more involved in the Chamber of Commerce. Council President Earling recalled the City had good success with the Main Street study including improving storefronts, attracting new merchants, etc. He did not recall any specific recommendations regarding linking Hwy. 99 and downtown in the study but offered to provide information regarding the study to the Planning Board. Mr. Dewhirst announced the Planning Board would hold its first public hearing on the Design Guidelines on Wednesday, March 28. He explained the document was divided into three parts, 1) the content of the Design Guidelines, 2) the process for using the Design Guidelines, and 3) what part was guidelines and what parts should be code. He said the intent of dividing the Design Guidelines into three parts was to advertise and direct comments to specific areas. Edmonds City Council Approved Minutes March 27, 2001 Page 5 Mr. Monlux pointed out the importance of public input on the Design Guidelines. He suggested the Council announce upcoming Planning Board public hearings during Council meetings. Councilmember Orvis asked the Planning Board's impression of the Design Guidelines thus far, noting one of his goals was to streamline the process for both sides, making the process less cumbersome for the applicant and less costly for the City. Mr. Dewhirst said as a result of discussions with the ADB, City Attorney and recent court cases, the Design Guidelines appeared to be on the right track. He said the City currently had some expectations and ideas but they were not well communicated and were scattered throughout various codes. He said the draft Guidelines put the community's expectations in one place, yet provided sufficient flexibility. He said the private sector has voiced the need for flexibility although the public has indicated they do not like flexibility. Mr. Monlux commented the Design Guidelines were very visual and illustrated many of the code's objectives. He said the draft Guidelines would be an effective tool for the public hearings as areas where changes were necessary were highlighted. Councilmember Marin hoped the Design Guidelines would continue to be guidelines versus "a set of laws." He said the best product often results by providing guidance but allowing flexibility. Council President Earling expressed his appreciation to the Planning Boardmembers for their efforts, noting they are a volunteer group. Mayor Haakenson thanked the Planning Board for the enormous amount of time they devote to addressing difficult issues. Library 6. APPROVAL OF ANNEXATION AGREEMENT WITH SNO -ISLE REGIONAL LIBRARY Annexation SYSTEM A reement Administrative Services Director Peggy Hetzler recalled on March 6, the Council reviewed a draft agreement from Sno -Isle Regional Library System for annexation services. During that discussion, the Council directed staff to continue working with Sno -Isle to clarify contractual issues, particularly regarding interior improvements to the Edmonds Library building. She advised the annexation agreement in the Council packet had been replaced by the annexation agreement approved by the Sno - Isle Board of Directors which was distributed to the Council tonight. Ms. Hetzler reviewed changes made to the annexation agreement previously reviewed by the Council including adding language that would allow the City and Sno -Isle to renegotiate terms regarding the requirement for the City to provide library quarters to the district; deleting the reference to Exhibit A in Section 3. 1.1 and replace it with a description of the quarters to be occupied by Sno -Isle and the common areas of the building (the quarters shall consist of 17,001 square feet of floor space on the first floor excluding the common area (lobby, elevator and restrooms) comprising 929 square feet of the Edmonds Library Building located at 650 Main Street, Edmonds, Washington); and deleting the reference to Exhibit B in Section 3.1.2 and replacing it with the description of the common area. Ms. Hetzler explained the most significant change from the previous agreement was in Section 3.2.3. The Library District proposes the creation of an Edmonds Building Maintenance Reserve Fund. Within this fund, the District will deposit the excess revenues received through annexation versus the current City agreement for the first three years of the annexation agreement. After three years, the Fund is anticipated to have cash contributions of $1.1 million. The intent of the reserve fund is to provide funding for the District's share of the roof replacement and, with the mutual consent of the District and the City, to pay for maintenance, furnishings, equipment and improvements. These maintenance and improvements may include but are not limited to carpeting, paint and /or wall coverings, light fixtures and any and all other fixtures and amenities within the quarters. Edmonds City Council Approved Minutes March 27, 2001 Page 6 The District further proposes to invest the monies within the Reserve Fund and manage disbursements to the extent that the fund balance remains sufficient to cover the costs identified above for the life of the Edmonds Library Building. The packet included a projection of the annual interest earning and anticipated disbursements from the fund based on a ten -year period. The exhibit demonstrated annual interest earnings to the fund would exceed expenditures and after ten years, the cash balance was greater than the balance after the initial capitalization period in which the greatest expenditure, the $300,000 for roof replacement occurs. Based on the assumptions used by Sno -Isle in this projection, the fund will continue to be solvent even if the projection were carried out over 30 years. Ms. Hetzler explained the language in the original annexation agreement indicates in the event the fund balance should prove insufficient over time, the responsibility for improvements reverted back to the City. The revised language in the annexation agreement adopted by the Library Board indicates in the event the Reserve Fund is exhausted, the City and the Library District shall negotiate the responsibility for maintenance, furnishings, equipment and improvements for the library quarters. Ms. Hetzler said approval of the annexation agreement was the next step in the process to reach the annexation election scheduled for May 15. Councilmember Petso requested the reference in the agreement to 31.1.1 be corrected. She also pointed out there were two sections numbered 3.2.3.2. Ms. Hetzler agreed these would need to be corrected. Councilmember Petso referred to the change to providing a maintenance fund for the library and asked if whether this was consistent with what was provided to other annexation cities. Sno -Isle Library District Director Art Weeks responded the Board realized there needed to be demonstration of value - added to the library service to Edmonds. He said there were other methods used in the past to encourage annexations. Although this exact method had not been used in the past, one of the objectives was to establish a plan that was portable for future annexations. Councilmember Petso said a citizen asked about a rumor /speculation that Sno -Isle was building a library for Monroe. Mr. Weeks answered legislation was enacted that enabled the creation of a Library Capital Facilities Area (LCFA). Sno -Isle has taken advantage of that legislation to create a LCFA for the area that includes the city of Monroe as well as outlying areas. He said the Monroe library would be owned and operated under the LCFA. Councilmember Orvis questioned when the first year of the annexation agreement would be. Mr. Weeks answered if the annexation vote was successful, annexation occurred in 2002 and Sno -Isle will begin depositing funds into the Reserve Fund in 2002. Councilmember Marin asked how the Reserve Fund total of $1.1 million was determined. Mr. Weeks described the deposits as $538,732 for the first year, $374,814 for the second year, $198,112 for the third year for a total of $1,111,658. Mayor Haakenson commented his understanding was this represented the difference between the annexation rate and the contract rate for three years. Jonalyn Woolf- Ivory, Sno -Isle Library Deputy Director, explained Sno -Isle planned to increase library contract fees to an amount similar to the amount collected via annexation. The intent was to form a bridge between the amount currently paid by the City under contract and what the contract fee would be when it was increased to the annexation amount. The first year, the total amount was reimbursed and less contributed in the second and third years. Edmonds City Council Approved Minutes March 27, 2001 Page 7 Councilmember Davis expressed appreciation for Sno- Isle's offer to establish a maintenance fund. He commented there was no inflationary factor. Mr. Weeks said $30,000 per year for internal improvements was quite generous; he anticipated more modest amounts would be expended each year and occasional larger expenditures for items such as a rehab of the interior. Mayor Haakenson remanded the item to Council for action. Councilmember Marin commented the annexation agreement provided in the Council packet was a great improvement over the agreement the Council reviewed previously. He was satisfied with the addition of the language that allowed the City and Library District to negotiate the responsibility for maintenance, furnishings, equipment and improvements for the library quarters in the event the Library Reserve Fund was exhausted. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER MILLER, TO AUTHORIZE THE MAYOR TO APPROVE THE ANNEXATION AGREEMENT BETWEEN THE CITY OF EDMONDS AND THE SNO -ISLE REGIONAL LIBRARY SYSTEM. Councilmember Petso commented the contract presented to the Council was not ready for adoption due to incorrect paragraph numbers and references. Although she appreciated Sno- Isle's efforts to demonstrate value -added in the agreement, the reality was if the City asked taxpayers to pay more for the library, that was less that citizens had available for City services, parks, public safety, etc. Councilmember Miller thanked Sno -Isle for working with the City as a partner. He also thanked Sno -Isle and City.staff for developing the building maintenance fund that bridged the gap between the difference paid via contract and collected via annexation, and creating a building maintenance fund into perpetuity. He said this may make annexation more inviting to those who were hesitant about it. MOTION CARRIED. (The vote was 6 -1, Councilmember Petso opposed.) On behalf of the Board of Trustees and Sno -Isle administration, Mr. Weeks thanked Mayor Haakenson for his efforts to revise the contract. Mayor Haakenson declared a brief recess. At Council President Earling's request, the order of Items 7 and 8 were reversed. Proclamation g• PROCLAMATION RECOGNIZING ANDREW KOEHN, MICHAEL STIGALL AND DAVID Recognizing EYTCHISON FOR ACHIEVING RANK OF EAGLE SCOUT Eagle Scouts Councilmember Miller explained for the past 6 -7 years, he has been associated with Scout Troop 301, a group where nine young men have achieved or are about to receive the rank of Eagle Scout in the past year. The Court of Honor for the three will be held Monday, April 2. Councilmember Miller read a proclamation recognizing Andrew Koehn, Michael Stigall and David Eytchison for achieving the rank of Eagle Scout and describing the Eagle Scout project each undertook. Increased 7. DISCUSSION OF POTENTIAL USE OF INCREASED REVENUES RECEIVED FROM UTILITY Revenues 'TAXES from Utility Taxes Administrative Services Director Peggy Hetzler explained this was a continuation of a presentation made previously at the Council retreat and at the January and February Finance Committee meetings. She explained in January 2001, the Snohomish County Public Utilities District (PUD) enacted a series of rate increases to offset PUD's rising cost of purchasing power. The rate increases ranged from 35 -38 %. The Edmonds City Council Approved Minutes March 27, 2001 Page 8 City imposes a 6% business and occupations tax on the gross receipts of PUD and a similar tax on all utilities operating in the corporate boundaries of the City. `''Due to the actions of PUD, finance staff estimates electrical utility tax revenues will exceed budgetary projections by approximately $360,000 in 2001. Staff also estimates General Fund and street fund expenditures are expected to increase by approximately $100,000 as a result of PUD's rate increase. After recouping increased costs, the City can expect to realize an annual revenue gain from this source of approximately $260,000. Ms. Hetzler explained this presentation would focus on two topics related to the use of the increased revenue, first the use of the revenue source to leverage funding for capital and infrastructure needs in the City (for discussion only) and second, an ordinance proposed by Councilmember Orvis to rollback the utility tax rate for 2001 (a potential action item). She explained although the capital needs of the City, had been discussed over the past few years as well as during multiple budget sessions, there has not been an available revenue source to address the infrastructure needs. Ms. Hetzler described the capital and infrastructure items identified by Public Works, Engineering and Parks personnel as high priorities to the City including the Frances Anderson Center in the amount of $1.4 million, street overlay catch -ups of $750,000, sewer meter rehab project of $500,000, sidewalk and street tree improvements of $600,000, library roof replacement of $300,000, and Fire Department signalization of $200,000, for a total of $3.8 million in high priority project costs. Parks and Recreation Director Arvilla Ohlde explained the Frances Anderson Center was one of the heaviest attended facilities in the City, with over 1,000 people using the facility daily during a 16 -hour day. She displayed photographs of the old electrical service in the building, explaining it was the original service installed in the facility 72 years ago. The capacity for electrical service is at its maximum and prohibits expanded programming such as a computer lab in the facility. She displayed photographs of the fuse box, commenting the Fire Department indicated the fuse box and breakers are the same as were in the restaurant that had a fire two years ago. She displayed photographs of the 1928 name plate on the electrical service, the breaker box for the fire alarm, the poor lighting fixtures with yellowed lenses, dim hallways, original 1928 plumbing, rusted drinking fountain, deteriorating restroom fixtures at preschool height, and rusting single pane wing windows. Public Works Director Noel Miller explained over the past five years approximately $180,000 has been spent on labor and materials to repair the City's sidewalks, the majority on downtown sidewalks. He displayed photographs of sidewalks being lifted by street trees in several areas, commenting the trees had reached sufficient size that they were continually lifting sidewalks. He said the City usually received 2 -3 claims for damages from citizens who trip and fall on sidewalk in the downtown area. He said in some areas, the same sidewalks are repaired on a 2 -3 year cycle. He explained many of the City's street trees need to be replaced and a biobarrier installed that forces the roots down and prevents lifting the sidewalks. He said $600,000 was included in the list of projects to replace the sidewalks and street trees in the downtown area over a three year period. City Engineer Dave Gebert explained staff prioritized the streets to be overlaid each year based on a rating evaluation of the street, safety condition, anticipated utility projects, amount of usage, future development, etc. He displayed photographs illustrating street deterioration throughout the City, including potholes, alligator cracking, rutting, raveling and cracking on street edges, exposed polished aggregate that creates a slippery condition, failing temporary utility patches, and settling utility crossings. He summarized there was significant and extensive deterioration in the streets throughout the City. The current funding level of street overlays was a 40+ year cycle. Industry standards recommend a 15 -20 year overlay cycle. He explained a good overlay lasted 15 -20 years, complete new construction of a roadway would last approximately 30 years. Without an adequate overlay program, the need for total Edmonds City Council Approved Minutes March 27, 2001 Page 9 reconstruction accelerates which costs three times more than an overlay. He said the City should be overlaying streets on a more frequent cycle to avoid the future need for reconstruction. Ms. Hetzler reiterated these needs have been recognized and discussed during budget sessions for years but remained unfunded due to the lack of a stable revenue source. She said the City now had an opportunity to address the capital backlog by utilizing a portion of the increased utility tax revenue. She explained within Edmonds, PUD's customer base was approximately 17,000 residential, 1,600 commercial and one industrial customer. A 35% rate increase adopted by PUD in January resulted in a $21 per month increase to the average household in the City. Applying the City's utility tax rate of 6% to the PUD rate increase, generates an impact to the average household of $1.26 per month. Ms. Hetzler explained the $1.26 per month investment by the electrical rate payers of Edmonds was sufficient to allow the City to leverage the $260,000 in additional annual net revenues into $3.8 million in long term financing to fund the capital projects previously described. She requested a PUD representative provide the Council with PUD's prospective on long term utility rates in Snohomish County. John White, Assistant General Manager, Snohomish PUD, commented the Frances Anderson Center may be eligible for conservation loans from PUD for lighting, HVAC, water heating, etc. He explained in January 2001, in response to market conditions in the electrical utility industry, the PUD Commission made a decision to increase rates by 35 %. Today, the PUD Commission made a decision on the Bonneville Power contract and anticipated a wholesale rate increase from Bonneville of 100 -125 %, which is estimated to raise retail rates 30 -40 %. He commented the prices were driven by a supply and demand imbalance in the western United States. Due to a strong economy in the west, particularly California, has resulted in the need for electricity outpacing development of new supply. Further, there may be some price gouging. The federal government is discussing price caps but at levels 5 -15 times the historic rate level in the west. Mr. White said although conservation and renewables will play a part, a significantportion of the supply solution will be met by new generation such as a natural gas fired generation plant. Further natural gas transmission pipelines in the northwest are at or near capacity, therefore significant gas pipeline infrastructure will be necessary to supply new generation. Mr. White explained rates would be increased again in late fall or early 2002 but it was anticipated rates would come down again in 5 -8 years but likely only to the level PUD was currently at. Ms. Hetzler described how the $1.26 per month could be leveraged to fund the high priority capital items. She said these were only illustrations of two possibilities of the way long term financing could be accomplished via leveraging the utility tax revenue, emphasizing there were many other ways that long term financing could be structured. She explained the $1.26 monthly investment by the average household would generate approximately $260,000 per year in net revenue to the City. In 2001, between the General Fund and Combined Utility Fund, $90,000 was budgeted for debt service, originally designated for the Frances Anderson electrical project and sewer rehab project. She said there was the potential for an additional $25,000 for the first 1/4% Real Estate Excise Tax (REST). This resulted in total available annual funding sources of $375,000. The first funding option was a 20 year level debt service issuing the $3.8 million in LT GO (limited tax general obligation) bonds in 2001. The annual debt service would be $315,000. She explained there were multiple benefits to issuing the debt at one time, including favorable municipal bond rates at this time and the lack of pending initiatives that limit the Council's ability to issue Councilmanic bonds. Further, by issuing the LT GO bonds in 2001, the City could take advantage of lower interest rates and have three years to expend the funds on capital projects. Using the total available annual funding source Edmonds City Council Approved Minutes March 27, 2001 Page 10 of $375,000 less the $315,000 in debt .service would result in a. net excess of $60,000 per year. This would allow a cushion in the event the utilitytax revenue projections were over optimistic. Ms. Hetzler described a second financing option that could be considered, a combination of issuing LT GO bonds and accessing the State's Public Works Trust Fund loan program for eligible projects which offered a 2% interest rate. She explained the second financial option could be accomplished over a two year period; if the LT GO were issued in 2001 and Public Works Trust Fund in 2002, the debt service would be approximately $270,000 per year. Total available annual funding of $375,000 less $270,000 results in a $105,000 cushion. She summarized under this scenario, the City would not have to leverage the entire $3.8 million to fund these projects. Ms. Hetzler clarified none of the figures she reviewed included additional revenue from the additional rate increases Mr. White mentioned. She said the Council may wish to consider banking revenue collected via the next utility rate increase to be used to pay down the debt early or for other purposes. Ms. Hetzler explained the second portion of her presentation related to a proposal by Councilmember Orvis. The Council packet includes a draft ordinance that would affect a one -year reduction in the 6% utility tax rate. She explained the proposed reduction would allow the City to collect enough revenue to cover the City's increased utility costs but ensure the City did not collect additional revenue as a result of the PUD rate increase. The proposed ordinance would reduce the rate from the current 6% to 5.13% for 2001. The 6% rate would be automatically reinstated in 2002. Ms. Hetzler described the impact on the average Edmonds household if the Council enacted the one -year rate decrease. The anticipated $360,000 in increased utility tax revenue, less $100,000 in anticipated street lighting and building electrical costs results in net revenue to the City on an annual basis of $260,000. The proposed ordinance would ensure the $260,000 was not collected by the City. The impact on the average household within the City was a monthly savings of less than $1.00 per month. She clarified although the increased utility tax was approximately $1.26 per household, the City would retain $0.26 to cover the City's increased electrical costs. Council President Earling asked when the rate reduction would become effective. Ms. Hetzler answered the ordinance was drafted to assume the rate decrease would be implemented June 1, 2001 to allow the required 60 day notice of a rate change to PUD. Council President Earling observed the saving for this year would then be only for seven months. Ms. Hetzler advised the rate was calculated so that the savings to a household would be $12 per year. Councilmember Plunkett noted from tonight's presentation, it appeared the only revenue for sidewalks, roads, and the Frances Anderson Center was the utility tax windfall. He asked for confirmation that there was $144,000 in available funding that could be used for debt service ($55,000 from BEET, $45,000 from the General Fund and $44,000 from the Treatment Plant). Ms. Hetzler responded that the REET funding was reduced from the $55,000 that was presented to the Finance Committee to $25,000 based on other possible uses of REET funds. Councilmember Plunkett asked if $55,000 from REET, $45,000 from the General Fund and $44,000 from the Treatment Plant, a total of $144,000 could be used for debt service if the Council chose. Ms. Hetzler clarified Treatment Plant funding could only be used for the Treatment Plant rehab project. The remaining $45,000 budgeted for the Frances Anderson Center wiring and, if the Council chose to make a policy change, available funding within the first 1/4% REET could be used for debt service. Councilmember Plunkett clarified it would not be a policy change as Frances Anderson Center was a park facility. Councilmember Plunkett summarized there was a revenue source of $144,000 that could be Edmonds City Council Approved Minutes March 27, 2001 Page 11 used for debt service; therefore, the proposal was not to use utility tax to provide funding for capital improvements. Ms. Hetzler agreed it was a combination of sources, the utility taxes, were one source. Councilmember Petso recalled the first presentation at the Council retreat was a bond for the full total of the projects and asked if that was still Ms. Hetzler's proposal. Ms. Hetzler stressed none of these were proposals, only depictions that the Council could instruct staff to research further. She acknowledged the $3.8 million amount was different than presented at the Council retreat but the amounts have changed as time progressed. Councilmember Petso recalled some projects had other funding sources, such as a grant for the Fire Department signal. Ms. Hetzler said the $300,000 cost of the Fire Department signal had been reduced by the $100,000 grant to $200,000. Councilmember Petso asked if the $500,000 for the sewer meter rehab was Edmonds' share or the total project cost. Ms. Hetzler answered it was the total project cost. She said each agency was already paying into a dedicated fund to pay the debt service. Councilmember Petso questioned why the City would issue a bond for the entire project cost if other agencies paid a proportional share of the project. Ms. Hetzler said this project was included at the recommendation of the Treatment Plant Oversight Committee. Mr. Miller offered to gather additional information from the oversight committee. Councilmember Petso asked the amount in the 2001 budget for roads. Mr. Gebert said the current 6 -year CIP included approximately $3 million for 2001 — 2006, an average of approximately $500,000 per year. Councilmember Petso asked if that amount was consistent with the 40 -year cycle. Mr. Gebert said that funding level equated to approximately a 46 -year cycle. Councilmember Petso asked the funding amount necessary for a 15 -year cycle. Mr. Gebert answered $1.6 million for a 15 -year cycle, $1.2 million for a 20 -year cycle, and $930,000 for a 25 -year cycle. Councilmember Petso asked whether the upgrades described in the packet were all that were needed to bring the Frances Anderson Center up to a usable and functional recreational center. Ms. Ohlde answered it would only meet the immediate needs as this was a 1928 building that was rehabbed in the 1970s. Councilmember Petso asked how many more improvements would be necessary. Ms. Ohlde said a long term maintenance plan was necessary as there would continue to be maintenance such as furnace, roof, carpet, interior needs, etc. Councilmember Petso asked if spending funds on the Frances Anderson Center was worthwhile or should the City consider a new recreational center. Ms. Ohlde said the Anderson Center was a historical structure and there was a desire by citizens to retain that facility. She envisioned it would always function as a vital asset in the community and should therefore be maintained. If the City chose to construct a new recreational center, likely via a bond, the demand at the Anderson: Center demonstrates the need for recreational center in addition to the Frances Anderson Center. Councilmember Petso asked what the Frances Anderson Center would be used for if a new recreation center were constructed. Ms. Ohlde answered it currently had a heavy emphasis on cultural programming and the configuration worked well for pottery studios, dance, etc. For Councilmember Petso, Ms. Hetzler explained the first '/4% of REET was designated for debt service on the City Hall building and the excess designated for future park purchases. Councilmember Orvis referred to Exhibit 2 in the Council packet (High Priority Capital/Infrastructure Needs) which showed expenditures in 2001 and 2002. Ms. Hetzler explained the exhibit only illustrated how the debt could be issued; when construction occurred was not relevant to when the debt was issued as there was a three year period in which to accomplish construction. She said exhibit 2 illustrated projects that were Public Works Trust Fund eligible. Councilmember Orvis commented the original Edmonds City Council Approved Minutes March 27, 2001 Page 12 plans were not to do all the Frances Anderson Center maintenance this year, only the electrical. Ms. Hetzler said $500,000 for electrical improvements to the Frances Anderson Center were budgeted in 2001. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO EXTEND THIS ITEM FOR 20 MINUTES. MOTION CARRIED UNANIMOUSLY. Mayor Haakenson reiterated none of this was a proposal; it was only a depiction. Councilmember Orvis asked if the $1.00 per month savings was calculated by treating all customers the same. Ms. Hetzler answered the figure was based on the average provided by PUD. Councilmember Orvis asked whether there was any differentiation between customers with electrical heat versus gas heat. Ms. Hetzler answered no. Councilmember Orvis commented one could expect a customer heating with electricity to have a higher bill. Ms. Hetzler reiterated the figure was the average residential user based on information provided by PUD. Councilmember Orvis asked whether PUD projected its future costs using a statistical model. Mr. White answered that was one tool. Councilmember Orvis said uncertainties in the models increase over time. Mr. White agreed, commenting there were no guarantees that rates would decrease in 5 -8 years. Councilmember Plunkett asked for confirmation that using $55,000 from BEET, $45,000 from the General Fund and $44,000 from the Treatment Plant would allow the City to leverage approximately $1.7 million in bonds. Ms. Hetzler agreed. Councilmember Plunkett asked whether this would be more capital improvements than the City had done in the past ten years. Ms. Hetzler agreed it would be more capital improvements than the City had done in the past ten years other than bonding done for buildings. Councilmember Petso recalled she raised a question earlier regarding the amount that could be raised from saved salaries and benefits for 2000, for example positions that were vacant for a portion of the year such as the Community Services Director or Development Services Director. Ms. Hetzler explained for the two positions mentioned, the amount was approximately $120,000. She did not have the information for all vacancies in the City; this information would be provided in the City's financial report on next week's Consent Agenda. Mayor Haakenson advised the Development Services and Community Services had an additional $120,000 in their budget at year end that was still there. Council President Earling asked how long it would take the City to catch up from a 40 -year overlay cycle to the 15 -year cycle. Mr. Gebert said the only calculations he had done were based on the total number of miles, the cost per mile and the existing backlog; the cost of a 15 -year maintenance cycle was $1.6 million, $1.2 million for a 20 -year cycle and $930,000 for a 25 -year cycle. Council President Earling observed the City was currently spending approximately $500,000 per year; that amount would need to be at least doubled to reach professional overlay standards. He asked how many years that would require. Mr. Gebert answered it would be on a continuous basis. Council President Earling observed the City's overlays were currently behind and were falling further behind each year. He said the current rate of expenditure for overlays was approximately on a 46 -year cycle. He explained at some point streets would have deteriorated beyond the condition that an overlay would be effective and a major reconstruction would be required. Once a street was reconstructed it lasted 30 years but cost approximately three times as much as an overlay. Council President Earling asked how many miles the $750,000 estimated cost would overlay. Mr. Gebert answered one mile of a standard 2 -inch overlay currently cost $175,000. Council President Earling Edmonds City Council Approved Minutes March 27, 2001 Page 13 observed $750,000 would provide 3 -5 miles of overlay. He asked how many miles of streets there were in the City. Mr. Gebert answered 133 miles. Council President Earling commented in the two financial plans displayed tonight, one resulted in an excess of $60,000 and the other had an excess of $105,000. He assumed the $55,000 in REET was reduced to $25,000 due to the excess monies that would be generated via debt service. He asked the consequence if the REET was removed as an available funding source. Ms. Hetzler answered the other funding sources were sufficient under both examples without the REET funds. For Council President Earling, Ms. Ohlde advised REET generated approximately $750,000 and $425,000 was designated for debt service on City Hall, leaving approximately $350,000. He asked when the Council made the decision to designate the excess REET for park acquisition. Ms. Ohlde answered on October 17, 2000, Council took action designating the 125/126 Fund to ,park acquisition and development and not the library roof or Frances Anderson Center. Council President Earling pointed out that action was taken for a reason and he still supported that designation. He said one of the reasons the City was able to consider purchasing waterfront property was the Council's willingness to set aside funds to acquire waterfront. Therefore, there was no need to raid the REET fund for these long -term projects. In response to Council President Earling's earlier comment regarding how long it would take the City to reach a 15 -20 year cycle, Mr. Gebert clarified if a 25 -year cycle was established, it would take the City 25 years to reach that level and maintenance would then need to be continuous. Councilmember Davis said his concern with using the $260,000 for long term debt was consistency. He observed PUD's opinion was that when rates were reduced, it would only be to the current level. Mr. White answered that was PUD's best estimate. Councilmember Davis asked how conservation impacted consumption. Mr. White said adjusted loads were down approximately 3% as compared to previous years but that was within the margin of error. Councilmember Davis asked whether PUD anticipated conservation would lower usage further. Mr. White said if their conservation efforts were fully successful, usage could be reduced 1 -2% more. Council President Earling commented he was in Washington DC recently to discuss transportation issues but instead discussed energy a great deal. He said a common message was that the energy crisis would accelerate over the next several years with another rate increase late this year or early next year. He said it may be interesting to calculate revenue generated by spikes that are projected over the next 2 -4 years. Mr. White commented prior to May 7, 2000, no one would have believed today's situation would exist and while the energy crisis will diminish, it was unclear when. He explained there were a number of factors that have exacerbated the situation including the drought weather pattern. He said there likely would be underlying supply and demand issues but the price volatility would be, significantly less. He assured PUD was in an energy balance situation for the next 3 -5 years, particularly after setting the Bonneville contract. Council President Earling pointed out the importance of a broad base discussion so that the Council understood potential issues. Although Councilmember Orvis has requested Council action on a tax rollback of $12, Council President Earling hoped the Council would continue their dialogue regarding potential capital improvements that could be accomplished using those funds. He believed citizens, once they understood the potential for nearly $4 million in improvements, would urge the City to keep the $12. He agreed it had been over ten years since substantial capital improvements had been done and the condition of the City's roads continued to deteriorate. He acknowledged there may be discrepancies based on customers' heat source but the citizens would likely view the $12 yearly expenditure as a wise investment to achieve priority capital needs. Edmonds City Council Approved Minutes March 27, 2001 Page 14 Councilmember Davis asked whether there were programs m place for low income consumers who were impacted by the rate increase. Mr. White answered PUD spends $2.5 million per year to fund programs for seniors and low income customers. He said PUD also had a very active conservation program for commercial, industrial and residential customers. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER ORVIS, TO EXTEND THIS ITEM FOR 15 MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Miller preferred the Council continue discussing the possibility of leveraging the excess utility tax into Councilmanic bonds to address street, Frances Anderson Center, and other capital projects. He was surprised at the animosity displayed by Councilmembers toward staff as staff was attempting to present information, not make any particular proposals. He recalled Councilmembers requested this information at the Council retreat. Councilmember Orvis preferred the Council pass the ordinance included in the Council packet as Exhibit 5. He commented electrical utility rates had increased dramatically and when rates increased, the City collected more in utility taxes. He said the proposed ordinance cut utility taxes by 30% for the last seven months of the year. This would prevent the City from collecting approximately $260,000 in revenue that was not expected and revenue that was not needed to pay the City's utility bills. He said this was necessary in order for the City to do its part to reduce utility rates. He said the solution to high utility bills involved all forms of government, federal state and local governments by relaxing regulations that hinder creation of new sources of electricity, research of new alternate forms of electricity, and federal, state and local governments by reducing taxation on electricity. He emphasized the ordinance did not ask the City to cut expenditures, only not to collect unanticipated revenue. He said the ordinance also did not require the Council make a long -term commitment as the 6% utility tax would be restored at year end, allowing the Council an opportunity to consider this issue again. Further, the ordinance allowed the Council an opportunity to consider the capital expenditures in conjunction with the 2002 budget. COUNCILMEMBER ORVIS MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF ORDINANCE NO. 3354. Councilmember Plunkett commented staff made an excellent presentation. He hoped the Council could approve funding for capital projects in the very near future as bond rates were favorable. He was encouraged by most of the revenue streams suggested including BEET, General Fund and Treatment Plant but objected to using the additional utility tax as a revenue stream. He was hesitant to obligate the City on a revenue stream that did not exist five months ago, a revenue stream that was under scrutiny, lawsuits and investigation. He preferred using up to $144,000 from the identified revenue streams for capital projects but without the revenue provided by increased utility taxes. Councilmember Petso supported the ordinance in part because of her commitment to funding the library in 2002 budget if the annexation vote failed. She said if the annexation vote failed, the City would need the additional funds to pay for the library contract, therefore, she was not comfortable with designating those funds toward long term bonds prior to the annexation vote. She expressed concern with the acceleration of Frances Anderson funding. She urged citizens to provide input about spending more money on the Frances Anderson building versus developing a new recreation center. She also expressed concern with bonding expenditures that may have alternate funding sources. She said the ordinance would allow her an opportunity to pursue alternate funding sources. She said the Council may decide to use the unexpended salaries to pay for City matching funds on Public Works Trust Fund or on capital improvements. Councilmember Marin said he was intrigued by the concepts that were presented and wanted the Council to pursue this opportunity. However, he preferred the vote on library annexation be concluded first. He Edmonds City Council Approved Minutes March 27, 2001 Page 15 recalled the information Ms. Hetzler provided included statistics regarding electrical rate increases as well as gas. He said the average increase for a family with both gas and electric was $423 over the past year. He said $423 plus $12 was an amount that significantly impacted many citizens. He supported the Council providing a symbolic gesture of rolling back the utility tax for a period of time. He said the opportunity to utilize this funding would still be available in 6 -9 months. He supported both the motion and the concept staff presented to pursue the opportunity to do capital improvements in the future. Councilmember Davis pointed out the presentation included the possibility of funding desperately needed capital projects that have been delayed for a long period and a tax relief proposal. The tax relief proposal was small and symbolic. He pointed out the need for further public input regarding this issue. Councilmember Orvis said a 30% reduction over 7 months was not small. He said it was important for all stakeholders to do their part to reduce utility bills whether by less regulation, lowering utility tax rates or conservation. Council President Earling pointed out the need for the community to address its long -term capital needs. Although he was sympathetic /empathetic with the need to save families $12, he believed most citizens, when they learned what could be leveraged with those funds, would prefer the City keep the money. He expressed concern that the view of long range was what got the City to next November. He hoped Councilmembers who made laudatory comments on the concept of reducing utility taxes would be willing to chart a course in 2002 that would equal or surpass the examples provided tonight. - UPON ROLL CALL, MOTION CARRIED (4 -3), COUNCILMEMBER MARIN, COUNCILMEMBERS ORVIS, PLUNKETT AND PETSO IN FAVOR AND COUNCIL PRESIDENT EARLING, AND COUNCILMEMBERS MILLER AND DAVIS OPPOSED. The ordinance approved is as follows: Ord #3354 Temporary AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE Reduction PROVISIONS OF SECTION 3.20.050(A) PUBLIC UTILITY DISTRICTS TO ADD A NEW on Electrical SUBSECTION 4 IN ORDER TO PROVIDE A TEMPORARY REDUCTION IN THE BUSINESS Utility Taxes AND OCCUPATIONS TAX ON PUBLIC UTILITY DISTRICTS FURNISHING ELECTRICAL ENERGY AND POWER FOR TAX YEAR 2001, PROVIDING FORA SUNSET OF SUCH PROVISION ON DECEMBER 31, 2001 AND FIXING A TIME WHEN, THE SAME SHALL BECOME EFFECTIVE. 9. MAYOR'S REPORT Berson In response to Councilmember Petso's comments regarding the Frances Anderson Center, Mayor enter Haakenson commented for six years there have been discussions regarding the needs of the Frances Anderson Center and said it was time for the Council to take action. He urged someone on the Council to "take the bull by the horns" and begin a process to determine the future of the Frances Anderson Center. He encouraged the Community Services Committee to undertake this task. Utility Tax Mayor Haakenson explained Ms. Hetzler and her staff spent an incredible amount of time developing Benda Item figures for the presentation regarding utility tax based on the Council's requests at the retreat and the Finance Committee meetings. He said at least four Councilmembers called Ms. Hetzler in the past 1' /z weeks providing guidance, telling her that her numbers were incorrect and requesting they be revised. He said a Councilmember even called Ms. Hetzler yesterday and this morning requesting the presentation be revised. Mayor Haakenson was dismayed the Administrative Services Director was called at home on the weekend and was delivering packets with special requests from Councilmembers. If there was further discussion regarding the utility tax or necessary capital improvements, he requested all Council questions be directed to the Finance Committee and presented to Ms. Hetzler by a representative of the Finance Committee rather than Councilmembers calling Ms. Hetzler directly. Edmonds City Council Approved Minutes March 27, 2001 Page 16 10. INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS munity Council President Earling repo ed on discussions regarding the potential of one transit agency in Sit Snohomish County. Everett Tran 1 and Community Transit were discussing either developing a better interlocal agreement so better sery ce could be provided as well as the potential for creating a single transit agency to serve all of Snoho ish County. , Request Quarterly Council President Earling reiterated his request for a quarterly report on progress being made on grants. Reports on He requested this report be scheduled at the next Council meeting. Grants Council President Earling thanked the Fire Department for responding to a fire in his business on Saturday. Additional Monthly Council President Earling requested the Council's input on a preferred day for holding one additional Council Council meeting per month to discuss complex issues and upcoming proposals. Meeting Councilmember Petso congratulated a group of chess players from Sherwood Elementary on their second place finish in the State Chess Championship in Vancouver. Councilmember Petso recalled a citizen commented that the Community Facilities ordinance the Council passed could allow a mega church to locate in a neighborhood. She said both the citizen and Mr. Snyder Proposed (via email) suggested a possible solution would be a moratorium to protect the City while the Planning Moratorium Board considered this issue. She suggested the Council direct Mr. Snyder draft the moratorium. Ordinance For Councilmember Orvis, Mr. Snyder advised the moratorium would apply only to community churches on collector streets. The Council requested Mr. Snyder draft a moratorium. Mr. Snyder commented zoning moratoria could be passed by the Council without a public hearing. The Council was required, however, to set a public hearing for a later date, not to exceed six months which was approximately the time the Planning Board needed to draft a recommendation. Alliance for Councilmember Plunkett reported the Edmonds Alliance for Economic Development reviewed progress Economic on their priorities such as establishing a directory in downtown, addressing building codes which is being Develop- done via the Design Guidelines, the City's potential purchase of Marina Beach, the Port's development ent of a Master Plan, discussion by a subcommittee of sites and funding for banners, development of a parking master plan, and displaying more Christmas lights this year. He emphasized the Alliance was not accomplishing all these items but were helping, participating, and encouraging and providing leadership, guidance and expertise. Priorities the Alliance has not yet addressed adequately are recruitment of businesses and establishing a ferry reservation system. ealth I Councilmember Marin reported on recent Health District Board meetings, noting the Health District was istrict concerned with recent outbreaks of measles and meningitis. He said the Health District's website, www.snohd.orl; had a link to an immunization page. esign Councilmember Orvis reported the Chamber of Commerce had been discussing the Design Guidelines uidelines and a public hearing with the Planning Board regarding the Design Guidelines was scheduled for March 28. With no further business, the Council meeting was adjourned at 10:25 p.m. I zj.�_,� - GAY HPKENSON, MAYOR SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes March 27, 2001 Page 17 AGENDA _ EDMONDS CITY COUNCIL Council Chambers, Public Safety Complex 250 5t" Avenue North 7:00 -10:00 D.m. MARCH 27, 2001 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 MARCH 20, 2001 (C) APPROVAL OF PAYROLL DIRECT DEPOSITS AND CHECKS #1599 THROUGH #1686 FOR THE PERIOD MARCH 1 THROUGH MARCH 15, 2001, IN THE AMOUNT OF $754,416.03 (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM GORDON VAN MERE ($160.66) AND RONDA ROHDE ($750,000.00) (E) APPROVAL OF DONATION OF FIRE MEMORIAL AMENITY FOR PUBLIC SAFETY COMPLEX (F) APPROVAL OF CONSULTANT CONTRACT AWARD FOR TRAFFIC ENGINEER SERVICES (G) AUTHORIZATION TO CALL FOR BIDS FOR THE WOODWAY ELEMENTARY SCHOOL WALKWAY AND SEAVIEW ELEMENTARY SCHOOL TRAFFIC CALMING AND PEDESTRIAN IMPROVEMENTS (H) AUTHORIZATION TO ENTER INTO AN INTERIM MAINTENANCE AND OPERATION AGREEMENT WITH THE CITY OF LYNNWOOD FOR THE EDMOND'S PORTION OF THE HIGHWAY 99 TRAFFIC SIGNAL SYSTEM 3. AUDIENCE COMMENTS (3 Minute Limit Per Person) 4. (15 Min.) REPORT FROM HISTORICAL PRESERVATION ADVISORY COMMITTEE 5. (60 Min.) JOINT MEETING WITH THE PLANNING BOARD 6. (20 Min.) APPROVAL OF ANNEXATION AGREEMENT WITH SNO -ISLE REGIONAL LIBRARY SYSTEM 7. (45 Min.) DISCUSSION OF POTENTIAL USE OF INCREASED REVENUES RECEIVED FROM UTILITY TAXES 8. ( 5 Min.) PROCLAMATION RECOGNIZING ANDREW KOEHN, MICHAEL STIGALL AND DAVID EYTCHISON FOR ACHIEVING RANK OF EAGLE SCOUT 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 as well as a delayed telecast of the meeting appears on AT &T Cable, Channel 21. 1