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02/02/2002 City CouncilElected Officials Present: Gary Haakenson, Mayor Council President Dave Earling Deanna Dawson, Councilmember Jeff Wilson, Councilmember Richard L. Marin, Councilmember Michael Plunkett, Councilmember David J. Orvis, Councilmember Lora Petso, Councilmember Saturday, February 2, 2002 Staff Present: Peggy Hetzler, Adm. Serv. Director Brent Hunter, Human Resources Director Stephen Clifton, Community Serv. Director Duane Bowman, Development Serv. Director Police Chief David Stern Fire Chief Tom Tomberg Arvilla Ohlde, Parks & Rec Director Noel Miller, Public Works Director Scott Snyder, City Attorney Jana Spellman, Sr. Executive Assistant to Council (Recorder) Linda Carl, Sr. Executive Assistant to Mayor CALL TO ORDER Council President Earling called the meeting to order at 8:30 a.m. and turned the meeting over to Stephen Clifton, Community Services Director, for his presentation. Policy Discussion on Channel 21 and City Web Page Presented by: Stephen Clifton, Community Services Director Mr. Clifton explained he had asked for this item to be placed on the agenda because of a request by a citizen to link to the City's web site. He explained that the request caused the City to look at City policy for linking to outside web sites and it was discovered that the City did not have a policy in place for this item or putting non -City related information on Channel 21. After speaking with the Mayor, Mr. Clifton was tasked with developing policies and a disclaimer for both the web site an( Channel 21. Mr. Scott Snyder, City Attorney, lent his expertise with this development. Mr. Clifton stated he was seeking a Council consensus to put this disclaimer on the web site. He described the differences between a public access channel and Channel 21 access policies. Mr. Clifton gave an overview of what type of information typically appears on a city's web site and followed by stating that the City's web site is not for hosting general public information but provides for governmental information. Mr. Clifton has been appointed to decide what is appropriate for the web site based on certain criteria which he outlined to the Council. Mr. Snyder explained the pros and cons of policy establishment. A general discussion took place between Mr. Clifton and the Council regarding the criteria outlined to be placed on the web site and Council President Earling asked that the language be further clarified and tightened. A general discussion occurred regarding using Channel 21 to televise various City -related events and the Mayor informed the Council that more equipment was needed before that could become a reality. A question and answer period followed. Ms. Hetzler, Director, Administrative Services, explained to the Council that IT falls under her auspices and the IT division .has not yet formed a web site policy and needed a Council -directed web site strategy. Mr. Earling stated that before any new equipment was purchased, policies needed to be in place. Mr. Clifton explained that his presentation was an umbrella policy and that he has met with the Directors of each City department in an effort to find out what kind of information the City wants to provide on the web site and Channel 21 from a City standpoint and not, at this time, worrying about other links. Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 5 The Mayor stated that he would like to see more City -related items on Channel 21 but that the Council needed to come up with a policy, directing someone to come up with equipment costs and how it can be accomplished. He wanted to point out that Channel 21 was an entirely different issue than the web site. Ms. Hetlzer clarified the web site was on her work plan but had not been scheduled to come before the Council yet. A broad discussion took place regarding access to public records through the City's web site. Ms. Hetzler explained her Department would like to move in that direction but it would take more staff as at present there is only .5 FTE maintaining the web site and that staff member has many more responsibilities than just the web site. Ms. Petso had a question about a web site bulleted item (Information regarding Edmonds community events, such as arts festivals, art displays, and neighborhood fairs) wondering if it was too broad in its description. Mr. Clifton, with the concurrence of the City Attorney, agreed to include some qualifiers in that language as to intent. Council President Earling asked the Council, in general, if they liked the direction the handout they had received was going (City of Edmonds Official Web site and Channel 21 Access Policies and Disclaimers). There was a consensus from the Council that it did asking that it include some language clarifiers. Mr. Earling proposed to move it to the Finance Committee so it could be finalized. Mr. Orvis, Chairman of the Finance Committee agreed. The Mayor stated he would like to see City Departments and staff members' telephone numbers be put on Channel 21 and asked the Finance Committee to consider that when they were looking at the policy he would like to see Channel 21 mirror the web site where feasible. Council President Earling called on Mayor Haakenson as the presenter of the next agenda item. Review of Mayor's Budget Message Committee Requests Presented by Mayor Haakenson Mayor Haakenson started with an explanation of why he wanted this item placed on the agenda. He stated that he wanted to clarify his requests of the Council and began with the Finance Committee. He clarified that his direction to the Finance Committee is to look at every conceivable revenue source thinkable, which should include all previous revenue streams that have been looked at, decide whether any of it is palatable, and come back to the Mayor with the Committee's suggestions. He explained that with the passage of 1-747 which limits the City to 1 % property tax (not withstanding any banked capacity) and with the loss of MVET backfill dollars (caused by 1-695), the Council needs to look at which way they want to proceed, because once the Council has given him direction as to which revenue sources are acceptable and which are not, he will go back to staff and determine where the cuts will be made. He made it clear that it was not if the cuts were going to be made but where the cuts would be made. He told the Council he didn't want them to think he was not interested in doing cuts that he had made it clear in the budget message cuts would be made. He reiterated that before he could begin he needed to know from Council which revenue streams would be acceptable. He then talked about the fact that he had asked the Community/Development Services Committee for a definition of economic development, i.e. "What is economic development?" He further expounded, "What does it mean to the Council and what role should the City play, both financially and secondly what role should City staff play in economic development?" He defined financially by asking the Council where, or if, the City should contribute money to economic development organizations at all. He said the Committee tasked with this has made great progress. Next, he spoke about the Public Safety Committee, and asked the Public Safety Committee to look at the overall provision of fire services, particularly how the City provides ALS and BLS services, as well as everything that is tied into it and where the City will be in five years explaining that fire services is a changing dynamic. He said he wanted to hear from the Council whether the City should begin looking at merging with other fire districts or with a single fire district. He said as long as he has been an elected official, about 6 years, the City has looked at fire consolidation and it has never come to fruition and that consolidation did not provide a cost saving. He asked about contracting with Fire District I wondering if that is where the City should be in the long run. One of the questions he asked Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 6 was whether the City was committed to have two paramedics on a rig forever or would that decision be made as the City proceeded with fire service decisions. He said if the Council absolutely did not want to talk about transport fees, that was their decision but all of those issues needed to be looked at. He asked the Council to take emotion out of looking at these issues and look at it from a dollars and sense standpoint and best care the City can give to citizens for best price. The Mayor asked for any questions or comments. Council President Earling called on Councilmember Plunkett. Mr. Plunkett stated that he wanted to clarify for the Mayor and Fire Chief Tomberg, regarding what he thought the Public Safety Committee had concluded during their last meeting, relating to what the Mayor had asked that Committee to do. He elucidated that the Mayor had asked the Public Safety Committee to look at overall provisions of fire service in the future. Councilmember Plunkett continued that he thought the Public Safety Committee said if the Committee was looking at transport fees in relationship to overall provision of fire services in the future, he thought the Committee would be open to that discussion. He said that what was tabled at the Committee's last meeting was a presentation that was exclusively limited just to transport fees as opposed to overall provisions for fire service into the future. He stated he saw that as an aspect of it but, speaking as Chairman of the Committee, he is willing, ready, and able at any meeting to discuss overall provisions of fire service in the future but that could not mean just transport fees. He said it was tabled at the meeting until it could be approached from a more global perspective. Council President Earling restated to Councilmember Plunkett that if the Mayor and Fire Chief brought to the Public Safety Committee the current status of all of the issues just outlined by the Mayor, and the Committee went through with the Chief and Mayor how different issues could be organized, Mr. Plunkett would be willing to take up that issue (transport fees) in the global sense? Mr. Plunkett agreed. The Mayor stated the Council needed to take a policy stand on transport fees as a revenue source. He said that the City owed it to itself and citizens to look at every possible revenue stream to keep property taxes down and not cut services. After an overall discussion took place as to what Council Committee — Finance or Public Safety - should take the lead on this issue, it was decided that it would stay with the Public Safety Committee. The Mayor agreed to look at fire services from a global perspective. Hearing no more questions or comments, Council President Earling called on Mayor Haakenson. Mayor Haakenson asked the Council to look at how the Council appeared to the public during their meetings. He explained this was prompted by the experience he had with the King County Council and its seeming lack of any interest in the presentation made by him and the citizens of Edmonds. He said it seemed to lack any formality. He suggested that the Council seems to be losing a little of the formality he had seen in the past and asked the Council if it wanted to conduct the meetings formally or informally. Mayor Haakenson asked for any questions or comments. A general discussion took place regarding Council meeting etiquette. Mr. Earling began the next item agenda, Workshop on Economic Development Workshop on Economic Development Presenters: Josephine Lloyd, Ruth Arista, Jack Oharah, and David Peterson Mr. Earling gave a short history of the various economic groups that had formed over the years. He explained to the Council that he was interested in having the Council decide how involved the Council wants to be with economic development and promoting business. He also mentioned finding out how the Council feels about funding the various groups. Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 7 He clarified to the presenters that he really wanted to have a discussion as to how all of the groups inter -related so that a final product could be put together that doesn't continue or begin to step on the toes of the others. He explained that there may be too many players for the amount of money that is in the community. He felt that funding of the various groups was a bottom-line concern of the Council. He started the discussion with Josephine Lloyd, presenter from the Greater Edmonds Chamber of Commerce. Ms. Lloyd gave a short presentation, which included: The role of the Greater Edmonds Chamber of Commerce, who they are, what they do and how, and where they stand on economic development. She explained the various groups the Chamber partnered with. She concluded by stating at the Chamber's 2002 retreat goals were identified for the next three years and one of those goals, should external funding ever become available, the Chamber may consider accepting responsibility for business recruitment saying the Chamber felt it was a very big issue. She also clarified that the Chamber felt community marketing was extremely important which not only included being visible to Edmonds' tourists but Seattle's tourists as well. Council President Earling asked the Council to hold questions until all the presenters had presented. Ruth Arista representing Team Edmonds was next. She explained their mission statement and goals, continued with their purpose, background, request for funds, advertising campaign, and benefits derived from their efforts. A question. answer and comment period was held for Mrs. Lloyd from the Chamber because she had an appointment and had to leave. Councilmember Dawson explained that if the initiative, Son of 1-747, passes, there will be no funding available to the various groups engaged in economic development. Councilmember Earling asked Ms. Dawson to explain the initiative. Councilmember Dawson clarified that although most people think it is just a 1 % cap on property taxes, it is a 1 % cap on all revenues to a city from all sources reiterating that all revenues to the City could not exceed the 1% cap. Council President Earling elucidated any funds exceeding that cap would have to be given back to the taxpayers which will change the way public entities have to think about doing business. The next presenter, Mr. Jack Oharah, Chairman of the Edmonds Alliance for Economic Development, began by speaking of the Alliance's work plan and its implementation, and about quarterly reports which would be given to the City and the Port of Edmonds. He spoke of the HyettPalma study and agreed with its statement that for the City to have the services it wanted, increased density in the downtown area would have to occur. He stated the City needs to recruit new businesses and business targeting not only in the bowl area but along Highway 99 and what the City would have to do to attract these businesses. He mentioned moderating development codes, design guidelines, permits, regulations and parking issues according to what the community wants. He stated the Alliance was studying these issues. He then turned the presentation over to David Peterson, Executive Director of the Alliance. Mr. Peterson began speaking to the Council about what he felt economic development is, explained why the Alliance went in the direction it was going using the HyettPalma study, and then stated he would tell the Council what he thought it should do to help with economic development. Mr. Peterson told the Council he felt there were three crucial things they could do to enhance economic development: 1) on Highway 99 give consideration to the pre -planning package feeling that the City could back charge the cost in fees. Mr. Peterson offered the Alliance's help to lower costs of that process; 2) in the downtown area, doubling the density of the number of people that live in the downtown area by adding one floor of height, change parking codes so that it is not always necessary that there be two parking spaces for every single residential unit; and 3) defeat Eyman's initiative. A question, answer, and comment period followed. One of the conclusions drawn was to make sure there were clear communications between each of the groups to make sure they had a common understanding of each other's goals and process and who would be responsible for a marketing packet. The Mayor commented that the City had to accept what it was, build on those attributes, and not strive for businesses that may not be interested in locating in Edmonds. Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 8 Councilmember Marin stated what he was interested in seeing happen this year was the production of a packet of information telling people how to start a business in Edmonds. He felt the Alliance was probably the best equipped to put the packet together and have the Chamber, Alliance and City be used as distribution points. He asked the Alliance to take the lead and put this in their work plan. Mr. Oharah said he would put it on the Alliance's next meeting agenda. Council President Earling called on Councilmember Orvis. Mr. Orvis said he would like to address Team Edmonds' Marketing Plan and hoped that it would be decided to make use of the funds that are available in the Council Contingency Fund to move forward with the funding of that proposal. Council President Earling suggested that it go to the Finance Committee first to come up with a proposal or suggestions for Council consideration. Mr. Orvis agreed and stated it would be put on the Committee agenda. Mr. Plunkett asked the Alliance to put in writing their concept of what the contents of a packet on how to start a business in Edmonds would consist of. Mr. Earling asked for a follow up meeting between the three groups and the Council some time in March or the middle of April. Ruth Arista asked that a member of the Downtown Merchants Association Committee also be involved. Mr. Earling said he would like to talk with Ms. Arista about how to structure it. Mr. Earling thanked the presenters and continued with the next agenda item. Financial Issues: Fund 007, Lost of 1-695 Backfill, V and 2"° Quarter REET Tax Presenter: Peggy Hetzler, Administrative Services Director Council President Earling explained that this agenda item contained three items, the first two Councilmember Petso asked for and the last item Councilmember Orvis asked for. Mr. Earling called on Peggy Hetzler who began with a discussion of the Criminal Justice Fund 007. She reviewed revenue sources, expenditures, and forecast. Council President Earling asked Ms. Petso her reason for bringing this item forward. Ms. Petso clarified that during the budget presentation for 2002 she noted some changes in the budget that were contrary to the efficient use of Fund 007 and wanted to discuss and have those items explained. A discussion ensued between staff and Ms. Petso satisfactorily answering her questions and concerns. Ms. Hetzler then continued with Loss of 1-695 State Backfill Funding by giving a historical narrative of the funding received by the City in 2000 and 2001. She then explained the two exhibits included with this packet were budgetary forecasts. Exhibit 1 Forecast showed assumptions that included a 3.5% property tax recapture in 2002; 1% increase in 2003-2006, reduced 2003 revenue by $460,000 for loss of 1-695 backfill fund, and included the new contract revenues from Woodway Fire. Services Contract. Exhibit 2 Forecast showed assumptions that included 3.5% property tax recapture in 2202 and 2003; 1.8% increase in 2004; 1 % increase in 2005-2006, reduced 2003 revenue by $460,000 for loss of 1-695 backfill funding, and included new contract revenues from Woodway Fire Services Contract. She pointed out that both forecasts ended in a negative cash balance but the Exhibit 2 Forecast negative balance of $359,403 in the year 2005 was much more manageable than the approximately 1.2 million in 2005 showed on the Exhibit 1 Forecast. I Ms. Hetzler explained that she had received some information from Mike Doubleday regarding some other possible revenue streams to replace the backfill funding the Association of Washington Cities is trying to get the Legislature to consider and gave that information to the Council. This backfill funding is being pursued so cities can recoup from the effects of 1-695. Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 9 A discussion took place between Councilmember Petso and Ms. Hetzler regarding ending cash balances. Ms. Hetzler explained that her Department was in the process of compiling an ending cash-balance history for the last 10 years and would make that available to the Council as soon as it was ready. Ms. Petso asked Ms. Hetzler what an acceptable ending cashing balance was and Ms. Hetzler replied 30 days worth of expenditures. Ms. Hetzler clarified that the Emergency Cash Reserve is available for cash flow purposes. She further elucidated that all of the City's funds have a pooled cash account so the City is able to use the money in the event the City has a projected short-term liquidity problem within the General Fund because the City has the ability to borrow internally. Ms. Petso dialogued with Ms. Hetzler about the Emergency Cash Reserve with Ms. Hetzler stating that money had never been reported in any of the General Funds ending cash projections. Mayor Haakenson asked to be recognized and then explained that the budget negative balances being discussed really were not an emergency fund issue it was a real-life issue and the negative ending cash balance numbers needed to be changed. He continued that he was going to come back to the Finance Committee, after it had a chance to look at potential revenue sources, and make the cuts needed to be made so the City does not show up with $4,000 as an ending cash balance. The Mayor informed Ms. Petso that he felt an acceptable ending cash balance would be one million dollars but that wouldn't be known until cuts have been made to show what it would look like three to four years in the future. And, because revenues weren't rising, costs are going to have to be cut somewhere. He stated that he would also like the Finance Committee to discuss looking at tax recapture from the banked capacity, which is left. He clarified that there was only banked capacity for 2003 and 2004 wondering whether the Council wanted to stay with the 11% increase; and, if so, said the Council would have to make a policy decision in this regard. He reiterated that before any decisions could be made about what the ending cash balance should be a lot of decisions had to be made. Ms. Petso said she felt it was more prudent to decide what the ending cash balance would be and then go forward with determining what cuts and revenue enhancements needed to be made. She further commented that if the one million dollars was the figure, the City was already below that amount and the City needed to make cuts to meet that goal. She further clarified that her understanding was that setting of a goal is a Council policy decision based on staff input; and if that is not the case or the Council can't get a number, then the City will have whatever ending cash reserve the City can come up with, with agreed cuts and revenue enhancements and the Council won't officially have a policy on what ending cash balance is prudent and necessary to the operation of the City. Council President Earling stated that there is a range of five hundred thousand to a million dollars and with the size of budget the City deals with, he thought there is almost agreement without having to fuss with the policy. A question and comment period ensued between staff and Council. Mr. Orvis asked about bringing that to Finance Committee and it was agreed to have the discussion at the same time new revenue sources were discussed. Mr. Earling then called on Ms. Hetzler to discuss the 1St and 2nd Quarter REET Tax that was put on the agenda by Mr. Orvis. Ms. Hetzler gave an overview of the statues authorizing the real estate excise tax in Washington, gave a history of the tax in the City of Edmonds and its uses, and discussed the exhibits attached to the packets. Ms. Ohlde gave a further explanation of the tax uses and reminded the Council that in October of 2000, the Council voted to dedicate both funds to parks acquisition and development, minus the payment on City Hall. Council questions were addressed by Ms. Hetzler and Ms. Ohlde. Mr. Earling asked Mr. Orvis if he would like to explain his placing this item on the agenda. Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 10 Mr. Orvis explained that he had brought this up because this fund had been involved with a budget amendment that he had proposed last year which would have used Fund 125 (2nd Quarter REET Tax) to pay the bonds off on the Frances Anderson Center. Ms. Hetzler explained that was not an option. Mr. Orvis said another issue he wanted to bring up was whether the policy of continuing this exclusively for parks should be continued explaining as the budget gets tighter over time, the Council might want to revisit that policy at some point but was not proposing that it be done this year. He said he would consider having the Council keep it in the back of their minds because they had discussed improving the quality of life in the City and there are other types of projects, other than park projects, that can do that. He felt this was a possible source of funding for those types of projects. He said that it was all just a matter of priorities and suggested that in the future the Council might want to talk about priorities. Mr. Plunkett said he couldn't understand, since Frances Anderson was a park, why the funds couldn't be used to a certain degree to cover some of the infrastructure needs that are related to parks. He went on to state he felt this issue should be considered in the future. Mr. Earling asked Mr. Plunkett for a clarification regarding infrastructure of park facilities and Mr. Plunkett stated that the Frances Anderson Center was the best example that came to his mind. He felt the City could apply some of that fund towards Frances Anderson repairs. Ms. Ohlde explained what the Legislature had done regarding this fund and how she was involved in working with the Legislature. She stated that because of the Council's policy regarding the 1St and 2"d REET Tax, the City had been able to purchase the waterfront for the citizens of Edmonds, which helps with economic development because it encourages tourism. I Mr. Earling asked for questions or comments. Hearing none, he continued by stating since this was the last time this year that the Council would discuss these taxes. He wanted it on the record for all in attendance, to remember that when anyone comes before the Council to talk about the fact that the service industries do not contribute in any positive way in tax, that all be reflective in realizing that there is one industry that is a service industry that has contributed significantly, on a yearly basis, tax (real estate excise tax) money to all of the cities across the State. The meeting was adjourned at 1:40 p.m. Summary minutes were taken. Tapes of this meeting are available in the City Clerk's Office. Cost: $2,00 per tape plus a $10.00 recording fee. WWOM -O- SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes February 1 & 2, 2002 Page 11 EDMONDS CITY COUNCIL RETREAT AGENDA 2002 Edmonds City Council Retreat City Hall — Brackett Room 121 5th Avenue North Edmonds, WA 98020 FRIDAY, February 1 Day I Time Subject Reg. By Presenter FRI 1:00 p.m. Development Services Wilson Bowman • Review of City Policy Regarding Fee for SAT 9:30 a.m. Service To Cover Permitting Costs & Mayor Mayor Permit Process Expectations SAT 10:15 a.m. • Economic Development/Redevelopment — SAT 10:30 a.m. What role could/should the City take? • ESA Update FRI 3:15 p.m. Break Josephine Lloyd FRI 3:30 p.m. GASB 34 Hetzler Hetzler/Consultant/Koho FRI 5:30 p.m. Dinner Jack Ohara - Ruth Arista SATURDAY, February 2 Day Time Subject Req. By Presenter SAT 8:30 a.m. Policy Discussion on Channel 21 and City Web Clifton Clifton Page SAT 9:30 a.m. Review of Mayor's Budget Message Committee Mayor Mayor Requests SAT 10:15 a.m. Break SAT 10:30 a.m. Workshop on Economic Development Invited Representatives from: • Greater Edmonds Chamber of Commerce Josephine Lloyd • Edmonds Alliance for Economic Marin David Peterson Development Jack Ohara • Team Edmonds Ruth Arista SAT 12:15 p.m. Lunch Financial Issues SAT 12:45 p.m. Fund 007 Petso Hetzler/Mayor/Ohlde Loss of 1-695 Backfill Petso • 15t and 2nd Quarter REET Tax Orvis d:mydocuments/wordata/Council Agendas/FINAL COUNCIL AGENDA 2002.doc