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2009.11.02 CC Agenda Packet              AGENDA Edmonds City Council Council Chambers, Public Safety Complex 250 5th Ave. North, Edmonds ______________________________________________________________ Special Monday Meeting November 2, 2009   6:30 p.m. - Executive session regarding pending or threatened litigation. 7:00 p.m. - Call to Order and Flag Salute 1. Approval of Agenda   2. Approval of Consent Agenda Items   A. Roll Call   B. AM-2574 Approval of City Council Meeting Minutes of October 27, 2009.   C. AM-2578 Approval of claim checks #114982 through #115132 dated October 29, 2009 for $518,862.77.   D. AM-2570 Acknowledge receipt of Claims for Damages from Randall Baird (amount undetermined), K. Fred Breske ($500,000), Donna L. Breske ($500,000), 9330 LLC ($500,000), and Scott Conahan ($686.27).   E. AM-2573 Authorization for Mayor to sign funding agreements with the Washington State General Administration for an energy efficiency improvement project at the Wastewater Treatment Plant.   F. AM-2571 Authorization to surplus seized vehicle.   3. AM-2575 (15 Minutes) Report from Community Transit on Bus Rapid Transit.   4. AM-2577 (30 Minutes) Public hearing on Fire District 1 Contract, Option 4. In addition to contracting for services with Fire District 1, this option includes selling apparatus (engines, aid cars, and equipment), and keeping fire stations, land and transport fees.   5. (30 Minutes)City Council discussion and potential action on the Fire District 1 Contract, Option 4.   6. AM-2569 (20 Minutes) Report to Washington Consortium regarding the transfer of control of Verizon Northwest Inc. to Frontier Communication Corporation - Workshop.   7.Audience Comments (3 minute limit per person)* *Regarding matters not listed on the Agenda as Closed Record Review or as Public Hearings.   8. AM-2572 (20 Minutes) City of Edmonds Website - City Council Web Pages. Packet Page 1 of 339   9. AM-2579 (20 Minutes) Review of construction easement reserved by Ordinance No. 3729. The easement involves the vacated right of way of a platted but unbuilt public alley lying between the 700 block of 8th Ave. N and 9th Ave. N and parallel to and north of Daley Street. The reserved construction easement is for the installation of a driveway and retaining wall on property lying north of the alley and east of 8th Ave. N.   10. (5 Minutes)Mayor's Comments   11. (15 Minutes)Council Comments   Adjourn   Packet Page 2 of 339 AM-2574 2.B. Approve 10-27-09 City Council Meeting Minutes Edmonds City Council Meeting Date:11/02/2009 Submitted By:Sandy Chase Time:Consent Department:City Clerk's Office Type:Action Review Committee: Committee Action: Information Subject Title Approval of City Council Meeting Minutes of October 27, 2009. Recommendation from Mayor and Staff It is recommended that the City Council review and approve the draft minutes. Previous Council Action N/A Narrative Attached is a copy of the draft minutes. Fiscal Impact Attachments Link: 10-27-09 Draft City Council Minutes Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 09:31 AM APRV 2 Mayor Gary Haakenson 10/29/2009 10:37 AM APRV 3 Final Approval Sandy Chase 10/29/2009 12:32 PM APRV Form Started By: Sandy Chase  Started On: 10/29/2009 08:36 AM Final Approval Date: 10/29/2009 Packet Page 3 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 1 EDMONDS CITY COUNCIL DRAFT MINUTES October 27, 2009 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Haakenson in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor D. J. Wilson, Council President Michael Plunkett, Councilmember Peggy Pritchard Olson, Councilmember Steve Bernheim, Councilmember Dave Orvis, Councilmember Ron Wambolt, Councilmember Strom Peterson, Councilmember STAFF PRESENT Tom Tomberg, Fire Chief Mark Correira, Assistant Fire Chief Gerry Gannon, Assistant Police Chief Stephen Clifton, Community Services/Economic Development Director Lorenzo Hines, Finance Director Rob Chave, Planning Manager Debi Humann, Human Resources Director Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder 1. APPROVAL OF AGENDA COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF OCTOBER 20, 2009. C. APPROVAL OF CLAIM CHECKS #114865 THROUGH #114981 DATED OCTOBER 22, 2009 FOR $537,990.94. APPROVAL OF PAYROLL DIRECT DEPOSITS AND CHECKS #48678 THROUGH #48713 FOR THE PAY PERIOD OCTOBER 1 THROUGH OCTOBER 15, 2009 FOR $819,291.29. D. APPROVAL OF LIST OF BUSINESSES APPLYING FOR RENEWAL OF THEIR LIQUOR LICENSES WITH THE WASHINGTON STATE LIQUOR CONTROL BOARD, SEPTEMBER AND OCTOBER 2009. E. COMMUNITY SERVICES AND ECONOMIC DEVELOPMENT QUARTERLY REPORT –OCTOBER, 2009. F. ADOPTION OF ORDINANCE NO. 3760 – AMENDING THE EDMONDS COMMUNITY DEVELOPMENT CODE TO ADD A NEW CHAPTER 16.100 FIRDALE VILLAGE MIXED-USE ZONING CRITERIA, AND A NEW CHAPTER 22.100 FIRDALE VILLAGE SITE DESIGN STANDARDS. Packet Page 4 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 2 G. PROCLAMATION IN HONOR OF FINDING AN END TO POVERTY WEEK, NOVEMBER 2 - 8, 2009. H. PROCLAMATION IN HONOR OF DIABETES AWARENESS MONTH, NOVEMBER 2009. 3. CONFIRMATION OF MAYOR'S APPOINTMENT TO THE POSITION OF FINANCE DIRECTOR. Mayor Haakenson explained the Council had an opportunity to interview the three finalists for the Finance Director position prior to last week’s Council meeting. With his own and the Council’s thoughts and recommendations in mind, he appointed Lorenzo Hines to the position of City’s Finance Director. He requested the Council’s confirmation. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO CONFIRM MAYOR HAAKENSON’S APPOINTMENT OF LORENZO HINES TO THE POSITION OF FINANCE DIRECTOR. Council President Wilson advised he would abstain as he was unable to participate in the interviews. He commented Mr. Hines was an exceptional candidate. Councilmember Plunkett spoke in support of Mr. Hines’ confirmation, commenting he had stepped into a hornet’s nest and although he was overworked and deluged, he had performed in good spirits and with due diligence and worked well with the Council and public. MOTION CARRIED (6-0-1), COUNCIL PRESIDENT WILSON ABSTAINED. Mayor Haakenson commented Mr. Hines has done an excellent job and will be a great addition to the management staff. 4. PUBLIC HEARING ON FIRE DISTRICT 1 CONTRACT, OPTION 4. IN ADDITION TO CONTRACTING FOR SERVICES WITH FIRE DISTRICT 1, THIS OPTION INCLUDES SELLING APPARATUS (ENGINES, AID CARS, AND EQUIPMENT), AND KEEPING FIRE STATIONS, LAND AND TRANSPORT FEES. Councilmember Wambolt referred to the question posed by the public regarding how Fire District 1 could provide fire service to Edmonds for $6.2 million/year, explaining in reality the amount was approximately $7.3 million. The City would pay Fire District 1 $6.2 million/year and Fire District 1 would no longer pay Edmonds approximately $700,000 to provide fire service to Esperance. In addition, Fire District 1 would likely negotiate a contract with Woodway which would generate additional revenue. Mayor Haakenson opened the public participation portion of the public hearing. Dave Page, Edmonds, asked if the City had held other public hearings. Mayor Haakenson answered there had been five opportunities for public comment. Mr. Page spoke in favor of contracting for fire service with Fire District 1, envisioning it would be beneficial to the City, the citizens and the Fire Department employees. He anticipated everyone would look back on this in the future as a win. He urged the Council to embrace regionalization and vote in favor of the contract. Al Rutledge, Edmonds, explained the City previously discussed fire service consolidation with Mountlake Terrace, Lynnwood and Brier when Laura Hall was the mayor. He reported Lynnwood signed Packet Page 5 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 3 a medical services contract with Mukilteo. He relayed a report in the Mukilteo Beacon that Edmonds and Mukilteo were involved in ongoing discussions with Fire District 1. He remarked that Lynnwood was considering cancelling their December meetings as a cost saving measure. Roger Hertrich, Edmonds, commented research that has been done indicates Edmonds received less that it should have from Fire District 1 for providing fire service to Esperance. In addition, Woodway has been getting a good rate for fire service from Edmonds. He envisioned the rates for Esperance and Woodway residents would increase when fire service was provided by Fire District 1 and expressed concern that representatives from those communities had not been involved in the discussions. Rich Senderoff, Edmonds, was glad the Council was no longer considering the sale of the fire stations and land. With regard to the public hearing process, he pointed out the difference between public comment and a public hearing. Public comment to date has been useful in providing the Council feedback during their deliberations. Public hearings should begin once the final proposal is made and the deliberations have reached an end. He pointed out often life got in the way and citizens did not have time to follow issues being considered by the Council. Citizens often wait until the Council has completed their deliberations and a proposal has been finalized before providing comment. George Murray, Edmonds, thanked Councilmember Wambolt for the work he has done on the proposal, Council President Wilson for the questions he has raised, and Ms. Buckshnis and Ms. Petso for their questions. He remarked the contract for fire service represented approximately 20-30% of the City’s budget. Consideration of the contract for fire service differed when it was for revenue purposes versus something the firefighters want. He suggested the Council contract with an outside, independent analyst to review the numbers, particularly assumptions such as fuel costs, the cost of department heads, and growth rates. He urged the Council not to rush into a contract. Diane Buckshnis, Edmonds, commented the City’s website had been down and she had only recently received the information regarding this agenda item. She remarked citizens are still confused and according to the Firefighters Union lost revenue could be as much as $2.5 million. She requested the City provide accurate information regarding the amount of revenue that would be lost via contracting with Fire District 1. She pointed out this was not a valid public hearing as information regarding Option 4 had not been available to the public. Hearing no further comment, Mayor Haakenson closed the public hearing. 5. CITY COUNCIL DISCUSSION ON FIRE DISTRICT 1 CONTRACT, OPTION 4 In response to comments made during the public hearing, Council President Wilson reported the Council took public comment regarding the Fire District 1 contract on September 15 and 22 and October 6 and 13; public hearings were held on October 20 and tonight; and another public hearing was scheduled for November 2. To Dr. Senderoff’s comment that life gets in the way, Mayor Haakenson agreed people did not have time to attend Council meetings or make their wishes known to the Council and that was why they elected the Mayor and Councilmembers. Council President Wilson referred to Section 2.9 of the Interlocal Agreement regarding response time, recalling in the past the Edmonds Fire Department met six of the eleven standards. This section indicates if more than six of the standards are met, the City and Fire District 1 would meet to discuss how to pay for the difference. He asked whether Fire District 1 would increase the cost of the contract if response times improved so that eight of the eleven standards were met. Fire Chief Tom Tomberg answered no, Packet Page 6 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 4 anticipating the only way Fire District 1 would increase the cost would be if the City asked to add services such as another fire station or additional personnel. Mayor Haakenson pointed out this section also provided a process if Fire District 1’s response times did not meet the City’s expectations. Council President Wilson referred to Section 4.8, and asked why the Interlocal Agreement still included the EMS transport fee language. Chief Tomberg answered the language was provided by the City Attorney. Fire District 1 will provide the EMS service, collect a transport fee and remit the fee to the City on a quarterly basis less the cost of collection. That process was the result of three opinions from the Office of the Inspector General that stated in order to collect Medicare, the cost must be collected by the provider of the service. He offered to email the Council the three opinions. Council President Wilson referred to Section 6.3, sale of the rolling stock, and asked if the City would be retaining any vehicles. Chief Tomberg answered the City would not retain any vehicles. Council President Wilson expressed appreciation for the addition of Section 8.2, a joint annual meeting. With that language, he was less concerned about also having an annual meeting with two Fire District 1 Commissioners and two Councilmembers. Mayor Haakenson suggested retaining the language and a decision could be made annually regarding whether a meeting was necessary. Council President Wilson referred to Section 11.1 regarding the first 5 years, questioning why the Interlocal Agreement did not allow the City to terminate the contract until 5 years had elapsed plus 2 years notice. Chief Tomberg answered this was modeled after the Mountlake Terrace and Brier contract. The reason for the 5 year period was the substantial investment made by Fire District 1. Council President Wilson questioned the reason for a 2-year notice rather than 12 months. Chief Tomberg answered it would give both the Fire District 1 and the City an opportunity to ensure the termination occurred in an orderly manner. Council President Wilson preferred to change the notice from 2 years to 1 year, anticipating since the Council would complete this process by December, it could be unwound in less than 2 years. He suggested termination of the contract be allowed to occur in 3 years. Council President Wilson referred to Section 11.5, Regional Fire Protection Service Authority, expressing concern that this section gave all the decision-making and policy-making authority to Fire District 1. He suggested the City retain the authority to enter into an RFA without Fire District 1 if they wished. Chief Tomberg explained the City Attorney and Fire District 1’s attorney drafted this section. He recalled until fall 2008, the City was involved in RFA discussions with the south county service providers, a process that was led by Fire District 1. Mayor Haakenson explained this section allowed Edmonds to opt out of a RFA if Fire District 1 wanted to form a RFA and Edmonds did not want to join. He remarked realistically Edmonds would never be part of a RFA that did not include Fire District 1. Council President Wilson agreed with Mayor Haakenson’s assumption regarding a RFA, commenting at some point he wanted to examine the concept of a Fire District comprised of Edmonds and Woodway or Edmonds, Woodway and Mountlake Terrace or reverse annexation into Fire District 1. He wanted to provide the Fire District 1 the same opportunity to opt out that was provided to the City in Section 11.5. The same was true for Sections 12.1 and 12.1.3 which provides the City the opportunity to opt out if the City declined to merge into a Fire District. He requested language be added that would allow Fire District 1 to opt out if they declined to merge into a Fire District or if they were opposed to the City annexing into Fire District 1. Councilmember Wambolt referred to Mr. Murray’s comment about the City continuing to pay for department heads, explaining under the proposed contract, the Fire Chief, Assistant Fire Chief and the Executive Assistant would all transfer to Fire District 1. Packet Page 7 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 5 With regard to Mr. Hertrich’s comments that Esperance and Woodway were not involved in the contract discussions, Councilmember Wambolt advised Woodway’s Mayor Pro Tem attended the joint meeting between the Council and Fire District 1 Commissioners. He agreed it was likely Esperance and Woodway would experience a greater expense for fire service. He remarked a total of 12 different citizens spoke regarding the Fire District 1 contract, 27 times. Councilmember Wambolt commented the financial situation was very compelling. He agreed there needed to be some refinement such as suggested by Mr. Murray regarding fuel projections, however, that refinement would be very slight. He pointed out under Option 1, expenses through 2016 would exceed revenues by $21.1 million. Under Option 4, expenses through 2016 would exceed revenues by $12.4 million. Over that seven year period, the City would be $10.6 million better off under Option 4 than Option 1. He summarized contracting for fire service with Fire District 1 did not solve the City’s financial problem; a levy lid lift would still be necessary. Mayor Haakenson referred to Ms. Buckshnis’ comment that the Firefighters Union indicated there would be a $2.5 million loss by contracting with Fire District 1. Tim Hoover, President, Edmonds Firefighters Local 1828, responded he was not aware of that. Councilmember Bernheim commented he wanted to be certain he understood the basis for the Union’s support: to stabilize public safety funding and staffing levels. He asked whether there had been a lack of stability in the actual funding levels of the Fire Department. Mr. Hoover answered there had been the threat of lack of funding every year. Last year through the work of the City Council as well as Fire Administration and the Union, the EMS levy was increased and transport fees were initiated which generated an additional $1.5 million. To date, the threat of insufficient funding has been circumvented by identifying additional revenue sources. Councilmember Bernheim acknowledged there had been threats but actual funding for the Fire Department had remained stead and stable. Mr. Hoover agreed it had but the Fire Department was included in discussion regarding across-the-board cuts every year. He pointed out the Fire Department’s budget had been cut in the past including the loss of the Assistant Fire Chief five years ago. Councilmember Bernheim asked how this proposal accomplished regionalization and why regionalization was the best way to provide the highest level of service. Mr. Hoover answered savings were based on economies of scale by reducing overhead costs while maintaining levels of service. This was beneficial to citizens because instead of relying on automatic aid, assistance was provided by the neighboring fire station that was within the same organization. Councilmember Orvis requested page 545 of 1057 of last week’s packet, Option 1 versus Option 4, also be available on the City’s website. Councilmember Orvis commented after talking with Chief Tomberg as well as the Fire District 1 Chief, he learned Fire District 1 sends its firefighters for live fire training in North Bend on overtime. Because Edmonds cannot afford to pay overtime, when Edmonds firefighters go to North Bend, there is a hole in service in the City. Fire District 1 does a much better job providing coverage for firefighters attending training. Councilmember Peterson pointed out the required 2 year written notice in Section 11.2 could be beneficial to Edmonds. In the event Fire District 1 wanted to terminate the contract, Edmonds would need at least that much time to establish its own fire service. He summarized the 2 year written notice was beneficial to both the City and Fire District 1. He agreed with the 5 year termination clause in Section 11.1 in view of the significant outlay of resources by Fire District 1. He noted the 5 year period Packet Page 8 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 6 was also important for the firefighters who transferred to Fire District 1. He summarized the 5 year period was appropriate from both a contractual as well as a service aspect. Councilmember Plunkett asked Councilmember Orvis whether he envisioned the Council would vote on the contract at the November 2 meeting. Councilmember Orvis responded yes, explaining he crunched the numbers this weekend and was unable to find any flaws; contracting with Fire District 1 would save the City money in the long run. He did not anticipate terminating the contract unless Fire District 1 charged the City more than the City could provide the service itself which he did not envision would happen. He spoke in support of Option 4 and suggested the November 2 agenda include a public hearing as well as state that the Council may take action on Option 4. Councilmember Bernheim noted the contract was a 20 year term and the base rate could be renegotiated after 20 years. Mayor Haakenson agreed the base rate in 20 years would be different than the base rate today. The contract language states the contract would be negotiated identically as it was today. Councilmember Bernheim observed the base rate of $6.2 million was established for next year and each year it would be adjusted depending on the factors identified in the contract such as labor costs, equipment replacement, etc. Chief Tomberg advised the contract would be adjusted annually for CPI. Mayor Haakenson advised a larger increase would occur when labor contracts were negotiated. Councilmember Bernheim asked if all the potential cost increases were limited to CPI. Chief Tomberg advised that information was detailed in Section 4.5. Councilmember Bernheim summarized if the City retained its own Fire Department, in 25 years the City would be in charge of how much the fire service cost which was not necessarily true if the City contracted for fire service. Councilmember Bernheim remarked he was impressed with the competency, command, capacity and confidence of the Fire District 1 Commissioners. However, he was concerned with turning over the City’s fire service to Fire District 1 when the citizens would not have an opportunity to vote for the Commissioners. Councilmember Bernheim asked if the contract addressed the new base rate when the contract expired in 20 years. Mayor Haakenson answered it did not. Councilmember Bernheim responded that was his primary reservation with this contract. He agreed the City’s financial situation was dire and that the City budget would be easier over the next five years if the City contracted with Fire District 1. If citizens wanted to retain control of the Fire Department, they should expect to pay the full cost of the Fire Department. He favored placing a levy on the ballot to allow the voters to indicate whether they were willing to pay for services. He supported the levy and the Edmonds Fire Department but was hesitant to give up control of the Fire Department. Council President Wilson commented he had sufficiently vetted the service and financial questions but did not feel the public has had sufficient time to vet the financial questions. He was inclined to vote for the contract but was concerned 7 years was too long to obligate the City without any flexibility. He asked whether in 2002 Mayor Haakenson would have been in favor of obligating the City for 7 years. Mayor Haakenson answered he has been reviewing the contract proposal since April 2009 with the Fire Chief, two Finance Directors, the City Attorney, and 5 public hearings where 12 people have spoken 27 times. During that time he had not received any calls from citizens expressing concern with the contract. Also during that time he held a neighborhood meeting where the only person who raised the issue was a Lynnwood Fire Department employee who lives in the City. He has attended meetings where political questions were raised and no one has brought up the issue of the fire service contract with Fire District 1. The issue has been on the front page of both newspapers for months, on the City’s website, and on Channel 21. He assured he would not have offered the contract to the Council if he did not believe in the Packet Page 9 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 7 contract terms, that there were financial savings, and that the citizens would be better served. Whether it was 2002 or 2009, the believed this was the right thing to do. Mayor Haakenson commented in 2002 he had no idea what would happen in the next 7 years, nor did he know what would happen in the next 7 or even 20 years. This contract would put the City in good stead for the next 2-3 years although a levy would still be necessary. He concluded the 5 year termination clause protected the City as well as Fire District 1 due to the huge investment they were making in taking on the Edmonds Fire Department employees and equipment. If the Council preferred a 1-year notice, that could be negotiated; however, he had no issue with the 2-year period. If he were Mayor and the Council decided in 5 years to opt out of the contract, he would want as much time as possible to set up the City’s Fire Department. Council President Wilson reiterated he felt 5 years plus a 2-year notice was too long. Pointing out the Council would be completing the contact over the course of 2 months including the sale of the fire apparatus, he envisioned that could be reversed in 12 months. He anticipated it would be a totally different world in 5 years; the situation was much different today than it was in 2003. He acknowledged a termination clause of less than 5 years or a notice period of less than 2 years may be totally unacceptable to Fire District 1. He also planned to work with City Attorney Scott Snyder to develop opt out language in the contract for Fire District 1. Mayor Haakenson suggested Council President Wilson determine whether at least four Councilmembers agreed with having the City Attorney develop that language, noting the City Attorney’s policy of not spending more than on hour on an issue unless at least four Councilmembers agreed. Council President Wilson assured his request would not consume more than one hour of the City Attorney’s time. With regard to the 2-year notice, Councilmember Peterson commented the formation of a RFA would be a lengthy process. If Edmonds wanted to form a RFA with Mountlake Terrace and Woodway, the 2-year notice would be desirable and as beneficial to Edmonds. He cautioned the Council should not pursue a contract with the idea of getting out of it; if the concerns were that great, the City should not enter into the contract. Council President Wilson stated the 2-year notice period was for any reason other than a RFA. Councilmember Wambolt commented there was no relationship between the term of the contract and the notice period. If it were a 3-year contract, a 2-year notice may still be desirable. He commented if the City wanted to terminate the agreement, planning could occur before notice was given; if Fire District 1 wanted to terminate the agreement, the entire 2-year period may be necessary. He asked Chief Tomberg whether a Fire Department could be established in one year, noting the contract with Fire District 1 was able to be completed relatively quickly because all the staff were transferring to Fire District 1. If Fire District 1 terminated the contract, the employees may not necessarily transfer to the City and recruitment may be necessary. Chief Tomberg responded he was hopeful the City was not contracting for fire service in 20 years; he hoped a RFA would be formed in the near future. He commented although the discussion was about regionalization, the concern seemed to be Edmonds having its own Fire Department again. He relayed the Mukilteo Beacon reported last week that the offer Fire District 1 made to Mukilteo was not presented to the Mukilteo City Council. Mukilteo is watching Edmonds and may consider Fire District 1’s offer. With regard to setting up a standalone Fire Department, he remarked the more time, the better. Councilmember Wambolt commented he had no issue with the 5 year termination clause in light of the significant investment Fire District 1 was making. With regard to the notice period, he commented a great deal would need to be accomplished in the event the contract was terminated. Council President Wilson explained his primary concern was 2 years following 5 years. He would accept even 2 years within the 5 years or ideally 2 years with 3 years. He pointed out the City had not done any Packet Page 10 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 8 planning with regard to the impacts of I-1033. If I-1033 passes, it will be even more difficult for future Council’s to address the constraints of a 7-year wait before the contract with Fire District 1 which comprises approximately 20% of the City’s budget, could be terminated. He was concerned the Council had not discussed how it would effectively manage the budget in a post I-1033 world. Councilmember Wambolt commented the passage of I-1033 would require a levy lid lift. Council President Wilson pointed out all other City services, including police and parks, would be at greater risk if I-1033 passed, a levy failed and the Council did not have the ability to terminate the fire service contract for 7 years. Mayor Haakenson responded if I-1033 passed the Police Department and Fire Department would continue to be funded, parks may not. Further, fire service would cost the City $1 million less via contracting with Fire District 1 than the City having its own Fire Department. He commented if I-1033 passed and the City were in dire straits, the only option to reduce the cost of fire service would be to close a fire station or lay off firefighters. He suggested the Council deal with I-1033 if it passed, commenting it had no effect on the fire service contract. Council President Wilson clarified he was not suggesting that a fire station be closed or that firefighters be laid off. He was interested in exploring other options such as annexing into Fire District 1 or a standalone Fire District with Mountlake Terrace or Woodway. If the Council planned to pass the fire service contract next Monday with the outcome of I-1033 unknown, he preferred to have some flexibility with regard to termination of the contract. Mayor Haakenson responded he had no interest in forming a new Fire District today or if I-1033 passed because it was not a good thing for Edmonds citizens. Mountlake Terrace and Brier have a good contract with Fire District 1 and were not interested in forming a Fire District with Edmonds; they are interested in a RFA with Fire District 1. He summarized the City’s future was with a RFA, not an Edmonds/Woodway or Edmonds/Mountlake Terrace Fire District. Councilmember Orvis commented he found the proposed language acceptable and viewed contracting for service with Fire District 1 as a more stable situation for the Fire Department. He did not envision addressing budget problems by reductions in the Fire Department under any circumstances. Councilmember Plunkett also found the proposed language acceptable, both the 5-year termination clause as well as the 2-year notice, noting those time periods provided stability and flexibility. He noted the contract did not restrict the City from taking action with regard to the formation of a RFA. If I-1033 passed, he would rather be in a contract for service with Fire District 1 than the City having its own Fire Department because it costs more for the City to operate its own Fire Department. He did not envision making cuts to the Fire Department even if I-1033 passed. Councilmember Wambolt agreed with Councilmember Plunkett, commenting the City was better off with a contract with Fire District 1 than on its own. COUNCIL PRESIDENT WILSON MOVED, IN SECTION 11.2 RELATED TO YEARS 6 THROUGH 20, TO CHANGE THE LANGUAGE TO READ, “EITHER PARTY MAY TERMINATE THIS AGREEMENT AFTER THE FIRST FOUR YEARS...BY PROVIDING THE OTHER PARTY WITH ONE YEAR WRITTEN NOTICE...ONCE FOUR YEARS HAVE ELAPSED AFTER THE COMMENCEMENT DATE.” MOTION DIED FOR LACK OF A SECOND. Councilmember Bernheim questioned the language in Section 4.5. Chief Tomberg referred to Exhibit C in the binder where the costs were detailed. Mayor Haakenson pointed out the labor cost increase for 2010 was 2.14%. Packet Page 11 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 9 Council President Wilson commented if Councilmembers were not interested in making any change to the contract, he would not propose alternate language. There were no changes requested by any Councilmember. Mayor Haakenson suggested any changes be discussed tonight to allow the public time for review. Councilmember Bernheim questioned whether the term of the contract should be lengthened. Mayor Haakenson agreed with Chief Tomberg that it was unlikely the contract for fire service would be in place in 20 years because of the likelihood that the City would be part of a RFA. Mayor Haakenson clarified Option 4 as presented in tonight’s packet would be on the November 2 agenda for a public hearing and Council action. Council President Wilson asked for confirmation that it was the Council’s policy decision that the sale of the assets would be placed in the General Operating Fund. The Council agreed it was. 6. AUDIENCE COMMENTS Rich Senderoff, Edmonds, clarified he did not mean to suggest that he did not understand the value of a representative government or a representative democracy. He was only commenting on the public hearing process. From his perspective, there had been very good public comment that helped the Council reach this point and as long as the comments from the public were different and reasonable, they assisted with the process. His point was there was a difference between a public hearing and public comment while deliberations occurred. In his view, tonight was the first public hearing. Mayor Haakenson agreed life gets in the way; people are busy. Al Rutledge, Edmonds, commented on several subjects, 1) the Lake Ballinger situation is being addressed by the Lake Ballinger Forum, 2) the Friends of the Edmonds Library held their annual book sale last week, and 3) the Mukilteo Beacon reported Mukilteo’s Mayor did not present the Fire District 1 contract proposal to the City Council. 7. COUNCIL REPORTS ON OUTSIDE COMMITTEE/BOARD MEETINGS. Council President Wilson reported the Lake Ballinger Forum met today and are considering the formation of an independent governing authority to address issues associated with Lake Ballinger. Councilmember Wambolt reported, the Port of Edmonds held their first public hearing on the draft 2010 operating budget at their October 12 meeting. The Port’s interest income is down $200,000 from last year. Port staff requested a 2.8% pay increase which the Commissioners did not approve. The Commissioners also discussed moorage rates for 2010. At their October 26 meeting, Commissioners again discussed moorage rates and requested staff develop scenarios with 2-5% increases in moorage rates. The Commission also reviewed their 3rd quarter operating results which indicated net operating income is down 4% year-to-date but the 3rd quarter is up 30% compared to last year. The Harbor Square Master Plan will be presented to the Commission at their November 16 meeting; the location of that meeting has yet to be determined. Councilmember Wambolt reported on the Community Technical Advisory Committee (CTAC), advising the Superior Court ruled that use of the City’s excess capacity on the City’s high speed fiber optic communication system by private individuals and non-governmental business and organizations that need access to ultra high band width communication is a lawful public purpose of the City. Packet Page 12 of 339 Edmonds City Council Draft Minutes October 27, 2009 Page 10 Councilmember Orvis reported the Health District was holding vaccination clinics on October 31. Additional information was available at SnoCoFlu.org or via the link on the City’s website. He encouraged members of the high risk groups to be vaccinated. Councilmember Bernheim reminded the seasonal flu shot was available at Bartell Drugs as well as the Swine Flu shot for those who qualified. Councilmember Bernheim reported Community Transit was also experiencing a budget shortfall due to their dependence on sales tax revenue. They are considering imposing service and/or personnel cuts as part of their 2010 budget. Swift Bus service, express service from Aurora Village to the Everett Transit Center with stops along Hwy. 99 and service every 10 minutes, will begin in November. Councilmember Plunkett reported on the Downtown Parking Committee, relaying that downtown parking enforcement was improving. Because Edmonds no longer provides animal control in Mountlake Terrace, the number of parking tickets issued in September increased from 69 to 225. He explained the purpose of parking enforcement was to move people through downtown and to ensure parking was available for shoppers visiting downtown stores. Councilmember Peterson reported the Council’s Economic Development Committee would be meeting later this week following the Economic Development Commission’s meeting with the Planning Board. 8. MAYOR'S COMMENTS Mayor Haakenson reported next week’s agenda will include an update from Community Transit on Bus Rapid Transit. He also reported a kick-off meeting for a common CAD system for SnoCom and SnoPac was held last week. Mayor Haakenson announced that the next Council meeting will be Monday, November 2 due to the election on November 3. 9. COUNCIL COMMENTS Council President Wilson reminded voters to mail their ballots by November 3. Councilmember Bernheim reported several weeks ago Planning Manager Rob Chave and he attended a meeting hosted by the Nissan Motor Company regarding their plans to release a large number of completely electric cars with a 100 mile range in the Pacific Northwest in December 2010. He advised Mr. Chave and he attended due to the possibility of fleet sales for the City. Councilmember Peterson referred to Item G on tonight’s Consent Agenda, a proclamation in honor of Finding an End to Poverty Week, November 2 - 8, 2009. To bring attention to this worldwide issue, Edmonds United Methodist Church is sponsoring its 4th annual Poverty Conference, Brighter Futures for the Worlds Children, Education Conquers Poverty on Saturday, November 7. Councilmember Peterson reminded parents to bring their children trick-or-treating in downtown Edmonds from 5:00 - 7:00 p.m. on Halloween. 10. ADJOURN With no further business, the Council meeting was adjourned at 8:45 p.m. Packet Page 13 of 339 AM-2578 2.C. Approval of Claim Checks Edmonds City Council Meeting Date:11/02/2009 Submitted By:Debbie Karber Time:Consent Department:Finance Type:Action Review Committee: Committee Action:Approved for Consent Agenda Information Subject Title Approval of claim checks #114982 through #115132 dated October 29, 2009 for $518,862.77. Recommendation from Mayor and Staff Approval of claim checks. Previous Council Action N/A Narrative In accordance with the State statutes, City payments must be approved by the City Council. Ordinance #2896 delegates this approval to the Council President who reviews and recommends either approval or non-approval of expenditures. Fiscal Impact Fiscal Year:2009 Revenue: Expenditure:$518,862.77 Fiscal Impact: Attachments Link: Claim cks 10-29-09 Form Routing/Status Route Seq Inbox Approved By Date Status 1 Finance Lorenzo Hines 10/29/2009 01:57 PM APRV 2 City Clerk Sandy Chase 10/29/2009 01:59 PM APRV 3 Mayor Gary Haakenson 10/29/2009 02:08 PM APRV 4 Final Approval Sandy Chase 10/29/2009 02:38 PM APRV Form Started By: Debbie Karber  Started On: 10/29/2009 11:07 AM Final Approval Date: 10/29/2009 Packet Page 14 of 339 10/29/2009 Voucher List City of Edmonds 1 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114982 10/22/2009 072975 THE ESCROW CONNECTION INC 939 Main St PURCHASE OF WETLAND P/A 939 MAIN ST Purchase of Wetland at 939 Main St, 126.000.390.594.750.610.00 34,664.65 Total :34,664.65 114983 10/29/2009 041695 3M XAM3522 TP81377 Street - Tomato Red 30"x50YD Vinyl Roll Street - Tomato Red 30"x50YD Vinyl Roll 111.000.653.542.640.310.00 183.75 9.5% Sales Tax 111.000.653.542.640.310.00 17.45 Street - Roll Black 30"x50YD VinylTP81378 Street - Roll Black 30"x50YD Vinyl 111.000.653.542.640.310.00 183.75 Roll White 30"x50YD Vinyl 111.000.653.542.640.310.00 183.75 9.5% Sales Tax 111.000.653.542.640.310.00 34.92 Total :603.62 114984 10/29/2009 065052 AARD PEST CONTROL 274313 1-13992 PEST CONTROL 411.000.656.538.800.410.23 63.25 9.5% Sales Tax 411.000.656.538.800.410.23 6.01 Total :69.26 114985 10/29/2009 066054 ADIX'S BED & BATH FOR DOGS AND NOVEMBER 2009 ANIMAL BOARDING EDMONDS - NOV 2009 ANIMAL BOARDING NOVEMBER 2009 001.000.410.521.700.410.00 2,032.66 Total :2,032.66 114986 10/29/2009 069157 AIONA, CYNDI AIONA11678 HULA CLASSES 1Page: Packet Page 15 of 339 10/29/2009 Voucher List City of Edmonds 2 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114986 10/29/2009 (Continued)069157 AIONA, CYNDI HULA KIDS #11678 001.000.640.574.200.410.00 140.00 ADULT HULA #11680 001.000.640.574.200.410.00 252.00 Total :392.00 114987 10/29/2009 064615 AIR COMPRESSOR SERVICE 32644 82948 AIR FILTER 411.000.656.538.800.310.21 34.50 9.5% Sales Tax 411.000.656.538.800.310.21 3.28 Total :37.78 114988 10/29/2009 000710 ALASKAN COPPER & BRASS 645242-1 Sewer - LS 1 - 40' - 1 1/4" Brass Pipe Sewer - LS 1 - 40' - 1 1/4" Brass Pipe 411.000.655.535.800.310.00 623.20 9.5% Sales Tax 411.000.655.535.800.310.00 59.20 Total :682.40 114989 10/29/2009 065568 ALLWATER INC 102209058 COEWASTE DRINKING WATER 411.000.656.538.800.310.11 21.85 9.5% Sales Tax 411.000.656.538.800.310.11 0.67 Total :22.52 114990 10/29/2009 001528 AM TEST INC 55880 SALT SAMPLES SALT SAMPLES 411.000.656.538.800.410.31 540.00 Total :540.00 114991 10/29/2009 066025 ANDERSON, ANGIE ANDERSON1024 PLAZA ROOM/ANDERSON CENTER MONITOR PLAZA ROOM/ANDERSON CENTER MONITOR~ 001.000.640.574.100.410.00 75.00 2Page: Packet Page 16 of 339 10/29/2009 Voucher List City of Edmonds 3 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :75.0011499110/29/2009 066025 066025 ANDERSON, ANGIE 114992 10/29/2009 069751 ARAMARK 655-4557436 UNIFORM SERVICES PARK MAINTENANCE UNIFORM SERVICES 001.000.640.576.800.240.00 47.04 9.5% Sales Tax 001.000.640.576.800.240.00 4.47 Total :51.51 114993 10/29/2009 069751 ARAMARK 655-4533041 21580001 UNIFORM SERVICES 411.000.656.538.800.240.00 92.67 9.5% Sales Tax 411.000.656.538.800.240.00 8.80 21580001655-4557440 UNIFORM SERVICES 411.000.656.538.800.240.00 92.51 9.5% Sales Tax 411.000.656.538.800.240.00 8.79 Total :202.77 114994 10/29/2009 069751 ARAMARK 655-4537613 Street/Storm Uniform Svc Street/Storm Uniform Svc 111.000.653.542.900.240.00 3.51 Street/Storm Uniform Svc 411.000.652.542.900.240.00 3.51 9.5% Sales Tax 111.000.653.542.900.240.00 0.34 9.5% Sales Tax 411.000.652.542.900.240.00 0.33 Fleet Uniform Svc655-4537614 Fleet Uniform Svc 511.000.657.548.680.240.00 15.00 9.5% Sales Tax 511.000.657.548.680.240.00 1.43 3Page: Packet Page 17 of 339 10/29/2009 Voucher List City of Edmonds 4 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114994 10/29/2009 (Continued)069751 ARAMARK Fac Maint Uniform Svc655-4545208 Fac Maint Uniform Svc 001.000.651.519.920.240.00 40.44 9.5% Sales Tax 001.000.651.519.920.240.00 3.84 PW Mats655-4549674 PW Mats 001.000.650.519.910.410.00 1.75 PW Mats 111.000.653.542.900.410.00 6.65 PW Mats 411.000.652.542.900.410.00 6.65 PW Mats 411.000.654.534.800.410.00 6.65 PW Mats 411.000.655.535.800.410.00 6.65 PW Mats 511.000.657.548.680.410.00 6.65 9.5% Sales Tax 001.000.650.519.910.410.00 0.17 9.5% Sales Tax 111.000.653.542.900.410.00 0.63 9.5% Sales Tax 411.000.652.542.900.410.00 0.63 9.5% Sales Tax 411.000.654.534.800.410.00 0.63 9.5% Sales Tax 411.000.655.535.800.410.00 0.63 9.5% Sales Tax 511.000.657.548.680.410.00 0.64 4Page: Packet Page 18 of 339 10/29/2009 Voucher List City of Edmonds 5 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114994 10/29/2009 (Continued)069751 ARAMARK Fac Maint Uniform Svc655-4557437 Fac Maint Uniform Svc 001.000.651.519.920.240.00 40.44 9.5% Sales Tax 001.000.651.519.920.240.00 3.84 Total :151.01 114995 10/29/2009 070251 ASHBROOK SIMON-HARTLEY 107978 66597 BEARINGS 411.000.656.538.800.310.21 1,868.00 Freight 411.000.656.538.800.310.21 111.50 Total :1,979.50 114996 10/29/2009 064343 AT&T 7303860502001 PUBLIC WORKS Public Works Fax Line 001.000.650.519.910.420.00 1.86 Public Works Fax Line 111.000.653.542.900.420.00 7.06 Public Works Fax Line 411.000.655.535.800.420.00 7.06 Public Works Fax Line 511.000.657.548.680.420.00 7.06 Public Works Fax Line 411.000.652.542.900.420.00 7.05 Public Works Fax Line 411.000.654.534.800.420.00 7.06 Total :37.15 114997 10/29/2009 064343 AT&T 425-771-0152 STATION #16 FAX STATION #16 FAX 001.000.510.522.200.420.00 35.90 Total :35.90 114998 10/29/2009 070305 AUTOMATIC FUNDS TRANSFER 52533 OUT SOURCING OF UTILITY BILLS 5Page: Packet Page 19 of 339 10/29/2009 Voucher List City of Edmonds 6 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114998 10/29/2009 (Continued)070305 AUTOMATIC FUNDS TRANSFER UB Outsourcing area #100 Printing 411.000.652.542.900.490.00 90.65 UB Outsourcing area #100 Printing 411.000.654.534.800.490.00 90.65 UB Outsourcing area #100 Printing 411.000.655.535.800.490.00 90.93 UB Outsourcing area #100 Postage 411.000.654.534.800.420.00 291.30 UB Outsourcing area #100 Postage 411.000.655.535.800.420.00 291.29 9.5% Sales Tax 411.000.652.542.900.490.00 8.61 9.5% Sales Tax 411.000.654.534.800.490.00 8.61 9.5% Sales Tax 411.000.655.535.800.490.00 8.64 OUT SOURCING OF UTILITY BILLS52614 UB Outsourcing area #400 Printing 411.000.652.542.900.490.00 124.06 UB Outsourcing area #400 Printing 411.000.654.534.800.490.00 124.06 UB Outsourcing area #400 Printing 411.000.655.535.800.490.00 124.44 UB Outsourcing area #400 Postage 411.000.654.534.800.420.00 399.54 UB Outsourcing area #400 Postage 411.000.655.535.800.420.00 399.53 9.5% Sales Tax 411.000.652.542.900.490.00 11.79 9.5% Sales Tax 411.000.654.534.800.490.00 11.79 9.5% Sales Tax 411.000.655.535.800.490.00 11.81 Total :2,087.70 6Page: Packet Page 20 of 339 10/29/2009 Voucher List City of Edmonds 7 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 114999 10/29/2009 001835 AWARDS SERVICE INC 72778 BADGE BADGE 117.100.640.573.100.310.00 8.75 Freight 117.100.640.573.100.310.00 3.22 9.5% Sales Tax 117.100.640.573.100.310.00 1.14 Total :13.11 115000 10/29/2009 012005 BALL AND GILLESPIE POLYGRAPH 2008-869 INV 2008-869 EDMONDS PD ROBINSON PRE-EMPLOY SCREENING EXAM 001.000.410.521.100.410.00 150.00 Total :150.00 115001 10/29/2009 072581 BARK TIME BLOWER TRUCK SERVICE 6441 YARD WASTE YARD WASTE 001.000.640.576.800.470.00 151.60 YARD WASTE6442 YARD WASTE 001.000.640.576.800.470.00 151.60 YARD WASTE6443 YARD WASTE 001.000.640.576.800.470.00 170.55 YARD WASTE6444 YARD WASTE 001.000.640.576.800.470.00 151.60 Total :625.35 115002 10/29/2009 069226 BHC CONSULTANTS LLC 0002781 E8GB.Services thru 09/18/09 E8GB.Services thru 09/18/09 412.300.630.594.320.410.00 10,936.17 Total :10,936.17 115003 10/29/2009 002800 BRAKE & CLUTCH SUPPLY 463165 Unit 474 - Repair Supplies 7Page: Packet Page 21 of 339 10/29/2009 Voucher List City of Edmonds 8 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115003 10/29/2009 (Continued)002800 BRAKE & CLUTCH SUPPLY Unit 474 - Repair Supplies 511.000.657.548.680.310.00 202.28 9.5% Sales Tax 511.000.657.548.680.310.00 19.22 Total :221.50 115004 10/29/2009 065341 BRIANS UPHOLSTERY 128084 Unit 474 - Repair Cushion Unit 474 - Repair Cushion 511.000.657.548.680.480.00 82.50 Sales Tax 511.000.657.548.680.480.00 7.26 Unit 680 - Repair Cushions128085 Unit 680 - Repair Cushions 511.000.657.548.680.480.00 313.50 Sales Tax 511.000.657.548.680.480.00 26.64 Total :429.90 115005 10/29/2009 066578 BROWN AND CALDWELL 14112095 C-311 C-311 ODOR CONTROL PROJECT 414.000.656.594.320.410.10 3,030.39 Total :3,030.39 115006 10/29/2009 071510 BUCK, ALICIA BUCK11388 ART FOR KIDZ DOODLE DOTS #11388 001.000.640.574.200.410.00 340.20 MINI MARKERS~ 001.000.640.574.200.410.00 413.00 Total :753.20 115007 10/29/2009 018495 CALPORTLAND COMPANY 90857442 Street - Cement Street - Cement 111.000.653.542.610.310.00 497.25 9.5% Sales Tax 111.000.653.542.610.310.00 47.24 8Page: Packet Page 22 of 339 10/29/2009 Voucher List City of Edmonds 9 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :544.4911500710/29/2009 018495 018495 CALPORTLAND COMPANY 115008 10/29/2009 071942 CAMPBELL, JULANN CAMPBELL11408 OIL PAINTING CLASSES OIL PAINTING #11408 001.000.640.574.200.410.00 492.80 OIL PAINTING #11409 001.000.640.574.200.410.00 431.20 Total :924.00 115009 10/29/2009 071816 CARLSON, JESSICA CARLSON11392 ART FOR KIDZ ADVENTURES IN DRAWING~ 001.000.640.574.200.410.00 273.00 Total :273.00 115010 10/29/2009 068484 CEMEX / RINKER MATERIALS 9418013410 Storm - Dump Fees Storm - Dump Fees 411.000.652.542.320.490.00 50.60 Water - Asphalt9418094010 Water - Asphalt 411.000.654.534.800.310.00 429.25 9.5% Sales Tax 411.000.654.534.800.310.00 40.78 Storm - Dump Fees9418100949 Storm - Dump Fees 411.000.652.542.320.490.00 160.55 Total :681.18 115011 10/29/2009 003510 CENTRAL WELDING SUPPLY LY 149549 Sewer - Cutoff Wheel Sewer - Cutoff Wheel 411.000.655.535.800.310.00 5.68 9.5% Sales Tax 411.000.655.535.800.310.00 0.54 Total :6.22 115012 10/29/2009 064840 CHAPUT, KAREN E CHAPUT11577 FRIDAY NIGHT OUT FRIDAY NIGHT OUT #11577 001.000.640.574.200.410.00 92.40 9Page: Packet Page 23 of 339 10/29/2009 Voucher List City of Edmonds 10 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :92.4011501210/29/2009 064840 064840 CHAPUT, KAREN E 115013 10/29/2009 003710 CHEVRON AND TEXACO BUSINESS 21635123 STATEMENT #21635123 ACCT 7898305185 FUEL FOR NARCOTICS VEHICLE 104.000.410.521.210.320.00 334.39 Total :334.39 115014 10/29/2009 071621 CHINN, LOUIS F CHINN11394 CARTOONING FOR KIDS CARTOONING FOR KIDS~ 001.000.640.574.200.410.00 167.70 Total :167.70 115015 10/29/2009 066382 CINTAS CORPORATION 460534204 OPS UNIFORMS Stn. 16 001.000.510.522.200.240.00 130.30 9.5% Sales Tax 001.000.510.522.200.240.00 12.38 VOLS UNIFORMS460534205 Vol hanger rack (credit to be issued 001.000.510.522.410.240.00 20.00 9.5% Sales Tax 001.000.510.522.410.240.00 1.90 UNIFORMS460536906 Stn. 17 - ALS 001.000.510.526.100.240.00 108.39 Stn. 17 - OPS 001.000.510.522.200.240.00 108.40 9.5% Sales Tax 001.000.510.526.100.240.00 10.30 9.5% Sales Tax 001.000.510.522.200.240.00 10.30 OPS UNIFORMS460536926 Stn. 20 001.000.510.522.200.240.00 103.71 9.5% Sales Tax 001.000.510.522.200.240.00 9.85 10Page: Packet Page 24 of 339 10/29/2009 Voucher List City of Edmonds 11 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115015 10/29/2009 (Continued)066382 CINTAS CORPORATION OPS UNIFORMS460539064 Stn. 16 001.000.510.522.200.240.00 139.89 9.5% Sales Tax 001.000.510.522.200.240.00 13.29 VOLS UNIFORMS460539065 Hanger rack (credit to be issued) 001.000.510.522.410.240.00 20.00 9.5% Sales Tax 001.000.510.522.410.240.00 1.90 UNIFORMS460541707 Stn. 17 - ALS 001.000.510.526.100.240.00 108.39 Stn. 17 - OPS 001.000.510.522.200.240.00 108.40 9.5% Sales Tax 001.000.510.526.100.240.00 10.30 9.5% Sales Tax 001.000.510.522.200.240.00 10.30 Total :928.00 115016 10/29/2009 063902 CITY OF EVERETT I09002313 Water Quality - Water Analysis Lab Work Water Quality - Water Analysis Lab Work 411.000.654.534.800.410.00 664.20 Total :664.20 115017 10/29/2009 063902 CITY OF EVERETT I09002363 INV #I09002363 EDMPOLI WSCJTC SATELLITE TRAINING COSTS - WSCJTC SAT. 001.000.410.521.400.490.00 300.00 Total :300.00 115018 10/29/2009 019215 CITY OF LYNNWOOD 7330 E3JB.Phse II Sidewalk thru 08/15/09 11Page: Packet Page 25 of 339 10/29/2009 Voucher List City of Edmonds 12 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115018 10/29/2009 (Continued)019215 CITY OF LYNNWOOD E3JB.Phse II Sidewalk thru 08/15/09 112.200.630.595.330.650.00 55,846.44 E3JB.Phse II Watermain thru 08/15/09 412.100.630.594.320.650.00 171,045.58 E3GB.Sewer Laterals thru 08/15/09 412.300.630.594.320.650.00 18,410.89 E3JB.Sidewalk thru 8/24/097340 E3JB.Sidewalk thru 8/24/09 112.200.630.595.330.650.00 17,026.20 E3JB.Water thru 8/24/09 412.100.630.594.320.650.00 10,617.83 Total :272,946.94 115019 10/29/2009 019215 CITY OF LYNNWOOD 7394 INV# 7394 CUST#47 EDMONDS NARC SGT. SHARE OF NARC SGT JUL-SEP 09 104.000.410.521.210.510.00 9,947.63 Total :9,947.63 115020 10/29/2009 004095 COASTWIDE LABS W2116583 Fac Maint - Cleaner, Air, Liners, Fac Maint - Cleaner, Air, Liners, 001.000.651.519.920.310.00 505.37 9.5% Sales Tax 001.000.651.519.920.310.00 48.01 Total :553.38 115021 10/29/2009 004579 COMPAAN, ALAN D OCT 20, 09 EXP CLAIM REIMBURSEMENT FOR SCSPCA MEETINGS COMPAAN MEETING 2/29/09 - SCSPCA 001.000.410.521.100.490.00 13.86 COMPAAN & THOMPSON MEETING 4/17/09 001.000.410.521.100.490.00 26.00 COMPAAN & THOMPSON MEETING 6/19/09 001.000.410.521.100.490.00 32.58 Total :72.44 115022 10/29/2009 069482 COMPRESSORS NORTHWEST 68304 Unit 46 - Filter 12Page: Packet Page 26 of 339 10/29/2009 Voucher List City of Edmonds 13 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115022 10/29/2009 (Continued)069482 COMPRESSORS NORTHWEST Unit 46 - Filter 511.000.657.548.680.310.00 20.00 9.5% Sales Tax 511.000.657.548.680.310.00 1.90 Total :21.90 115023 10/29/2009 072513 CONATY, LEANNE CONATY11443 A BRUSH WITH VAN GOGH A BRUSH WITH VAN GOGH~ 001.000.640.574.200.410.00 252.00 Total :252.00 115024 10/29/2009 065683 CORRY'S FINE DRY CLEANING 510-0128 OPS UNIFORMS Training chief 001.000.510.522.200.240.00 46.52 OPS UNIFORMS510-0729 BCs 001.000.510.522.200.240.00 73.92 OPS UNIFORMS510-1303 Kuhn 001.000.510.522.200.240.00 6.84 OPS UNIFORMS510-1602 B Mc 001.000.510.522.200.240.00 23.26 ADMIN UNIFORMS510-1884 FC 001.000.510.522.100.240.00 15.07 OPS UNIFORMS510-2341 AC 001.000.510.522.200.240.00 35.58 Total :201.19 115025 10/29/2009 065183 COSMOPOLITAN ENGINEERING GROUP2009137 NPDES CONSULTING NPDES CONSULTING 411.000.656.538.800.410.11 7,606.69 Total :7,606.69 13Page: Packet Page 27 of 339 10/29/2009 Voucher List City of Edmonds 14 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115026 10/29/2009 069848 CRAM, KATHERINE CRAM11653 IRISH DANCE CLASSES IRISH DANCE 13+~ 001.000.640.574.200.410.00 252.00 IRISH DANCE FOR KIDS #11649 001.000.640.574.200.410.00 147.00 Total :399.00 115027 10/29/2009 065961 CRYOTECH DEICING TECHNOLOGY IN20317 Street - Hwy Deicer Street - Hwy Deicer 111.000.653.542.660.310.00 12,108.00 Freight 111.000.653.542.660.310.00 1,850.24 9.5% Sales Tax 111.000.653.542.660.310.00 1,326.04 Total :15,284.28 115028 10/29/2009 065752 DAPHNE R SCHNEIDER & ASSOC 2 Team Development Training Sessions Team Development Training Sessions 001.000.620.532.200.410.00 2,999.40 Total :2,999.40 115029 10/29/2009 006626 DEPT OF ECOLOGY 2010WAR009068 E5MC.Stormwater Permit E5MC.Stormwater Permit 412.200.630.594.320.410.00 227.00 Total :227.00 115030 10/29/2009 064531 DINES, JEANNIE 09-3041 MINUTE TAKING 10/20 Council Minutes 001.000.250.514.300.410.00 309.00 Total :309.00 115031 10/29/2009 068395 DUO-SAFETY LADDER CORP 425793-00 OPS SM EQUIPMT aluminum rungs 001.000.510.522.200.350.00 98.00 Freight 001.000.510.522.200.350.00 28.55 14Page: Packet Page 28 of 339 10/29/2009 Voucher List City of Edmonds 15 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :126.5511503110/29/2009 068395 068395 DUO-SAFETY LADDER CORP 115032 10/29/2009 072982 E & E LUMBER 10352 TRAINING SUPPLIES lumber 001.000.510.522.400.310.00 182.13 Total :182.13 115033 10/29/2009 068292 EDGE ANALYTICAL 09-15517 WATER QUALITY - WATER SAMPLE TESTING WATER QUALITY - WATER SAMPLE TESTING 411.000.654.534.800.410.00 972.00 Total :972.00 115034 10/29/2009 007675 EDMONDS AUTO PARTS 15234 SUPPLIES SPARK PLUGS 001.000.640.576.800.310.00 5.92 9.5% Sales Tax 001.000.640.576.800.310.00 0.56 SUPPLIES15410 PLUG 001.000.640.576.800.310.00 3.05 9.5% Sales Tax 001.000.640.576.800.310.00 0.29 Total :9.82 115035 10/29/2009 007675 EDMONDS AUTO PARTS 14772 Sewer - TV Truck 62 - Ratchet, Allen Sewer - TV Truck 62 - Ratchet, Allen 411.000.655.535.800.310.00 41.74 9.5% Sales Tax 411.000.655.535.800.310.00 3.97 Total :45.71 115036 10/29/2009 070683 EDMONDS MAIL & PARCEL 17389 UPS/DEPT. OF LABOR & INDUSTRIES UPS/DEPT. OF LABOR & INDUSTRIES 411.000.656.538.800.420.00 10.90 9.5% Sales Tax 411.000.656.538.800.420.00 1.03 15Page: Packet Page 29 of 339 10/29/2009 Voucher List City of Edmonds 16 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :11.9311503610/29/2009 070683 070683 EDMONDS MAIL & PARCEL 115037 10/29/2009 069523 EDMONDS P&R YOUTH SCHOLARSHIP MCLEAN1026 YOUTH SCHOLARSHIP YOUTH SCHOLARSHIP:~ 122.000.640.574.100.490.00 59.00 Total :59.00 115038 10/29/2009 062190 EDMONDS POLICE DEPT DETECTIVES 10/23/09 PETTY CASH DETECTIVES BUY FUND 10-23-09 CELL MINUTES - CONF. INFORMANT - 09-1539 001.000.410.521.210.490.00 27.38 CONTROLLED BUY 09-2865 001.000.410.521.210.490.00 260.00 Total :287.38 115039 10/29/2009 008705 EDMONDS WATER DIVISION 2-25150 9TH & CASPER ST (WEST PLANTER) 9TH & CASPER ST (WEST PLANTER) 001.000.640.576.800.470.00 23.80 9TH & CASPER ST (EAST PLANTER)2-25175 9TH & CASPER ST (EAST PLANTER) 001.000.640.576.800.470.00 54.42 SPRINKLER2-28275 SPRINKLER 001.000.640.576.800.470.00 46.26 MINI PARK2-37180 MINI PARK 001.000.640.576.800.470.00 33.13 Total :157.61 115040 10/29/2009 008705 EDMONDS WATER DIVISION 1-00650 LIFT STATION #7 LIFT STATION #7 411.000.655.535.800.470.00 23.80 LIFT STATION #81-00925 LIFT STATION #8 411.000.655.535.800.470.00 31.97 LIFT STATION #11-01950 LIFT STATION #1 411.000.655.535.800.470.00 23.80 16Page: Packet Page 30 of 339 10/29/2009 Voucher List City of Edmonds 17 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115040 10/29/2009 (Continued)008705 EDMONDS WATER DIVISION LIFT STATION #21-02675 LIFT STATION #2 411.000.655.535.800.470.00 23.80 Public Works Fountain, Bldgs & Restrooms1-03950 Public Works Fountain, Bldgs & Restrooms 411.000.654.534.800.470.00 370.91 Public Works Meter Shop1-05350 Public Works Meter Shop 411.000.654.534.800.470.00 156.08 LIFT STATION #61-05705 LIFT STATION #6 411.000.655.535.800.470.00 50.50 CITY HALL1-13975 CITY HALL 001.000.651.519.920.470.00 542.60 CITY HALL1-14000 CITY HALL 001.000.651.519.920.470.00 115.63 LIFT STATION #32-26950 LIFT STATION #3 411.000.655.535.800.470.00 50.50 LIFT STATION #144-34080 LIFT STATION #14 411.000.655.535.800.470.00 23.80 Total :1,413.39 115041 10/29/2009 068796 ENVIRONMENTAL BIOTECH INC 10053 DIP STICK PRO/WITH EXTENSION DIP STICK PRO/WITH EXTENSION 411.000.656.538.800.310.21 299.95 Freight 411.000.656.538.800.310.21 30.00 Total :329.95 115042 10/29/2009 072980 ESC ASSOC - SUNSET LANDING PLN20090042 90% refund of application fee. 17Page: Packet Page 31 of 339 10/29/2009 Voucher List City of Edmonds 18 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115042 10/29/2009 (Continued)072980 ESC ASSOC - SUNSET LANDING 90% refund of application fee. 001.000.000.257.620.000.00 2,929.50 Total :2,929.50 115043 10/29/2009 009815 FERGUSON ENTERPRISES INC 0231278 Sewer - Brass Couplings Sewer - Brass Couplings 411.000.655.535.800.310.00 240.91 9.5% Sales Tax 411.000.655.535.800.310.00 18.55 Total :259.46 115044 10/29/2009 067042 FINAL TOUCH FINISHING KING11328 ETIQUETTE CLASSES ETIQUETTE: STARTING POINT~ 001.000.640.574.200.410.00 140.00 ETIQUETTE: YOUNG LADIES & GENTLEMEN~ 001.000.640.574.200.410.00 225.00 Total :365.00 115045 10/29/2009 070271 FIRST STATES INVESTORS 5200 259874 TENANT #101706 4TH AVE PARKING LOT RENT Nov-09 4th Avenue Parking Lot Rent 001.000.390.519.900.450.00 300.00 Total :300.00 115046 10/29/2009 072932 FRIEDRICH, KODY FRIEDRICH11657 IRISH DANCE CLASSES IRISH DANCE 13+~ 001.000.640.574.200.410.00 286.00 Total :286.00 115047 10/29/2009 072896 GIBSON & ASSOCIATES 1461.3 Recruiting fee in connection with Recruiting fee in connection with 001.000.310.514.230.410.00 24,518.80 Total :24,518.80 115048 10/29/2009 071945 GILL-ROSE, SUE ROSE11528 WATERCOLOR/DRAWING 18Page: Packet Page 32 of 339 10/29/2009 Voucher List City of Edmonds 19 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115048 10/29/2009 (Continued)071945 GILL-ROSE, SUE WATERCOLOR BEGINNING/INTERMEDIATE~ 001.000.640.574.200.410.00 554.40 DRAWING BEGINNING/INTERMEDIATE~ 001.000.640.574.200.410.00 431.20 Total :985.60 115049 10/29/2009 012199 GRAINGER 9087618626 Water - Disposable Wipes Water - Disposable Wipes 411.000.654.534.800.310.00 94.73 9.5% Sales Tax 411.000.654.534.800.310.00 9.00 Total :103.73 115050 10/29/2009 069733 H B JAEGER COMPANY LLC 110582/1 Water - Non Inventory Setters Water - Non Inventory Setters 411.000.654.534.800.310.00 1,636.06 9.5% Sales Tax 411.000.654.534.800.310.00 155.43 Total :1,791.49 115051 10/29/2009 012560 HACH COMPANY 6458791 112830 LAB SUPPLIES 411.000.656.538.800.310.31 232.93 Freight 411.000.656.538.800.310.31 15.95 9.5% Sales Tax 411.000.656.538.800.310.31 23.66 Total :272.54 115052 10/29/2009 060985 HARRINGTON INDUSTRIAL PLASTICS 007A9374 036570 19Page: Packet Page 33 of 339 10/29/2009 Voucher List City of Edmonds 20 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115052 10/29/2009 (Continued)060985 HARRINGTON INDUSTRIAL PLASTICS PLASTIC SHEET 411.000.656.538.800.310.21 354.96 Freight 411.000.656.538.800.310.21 20.00 9.5% Sales Tax 411.000.656.538.800.310.21 35.62 Total :410.58 115053 10/29/2009 013350 HIGHLAND, SCOTT E3JC.9 E3JC.Highland thru 10/24/09 E3JC.Highland thru 10/24/09 412.100.630.594.320.410.00 1,260.00 HIghland Mileage thru 10/24/09 412.100.630.594.320.410.00 13.86 Total :1,273.86 115054 10/29/2009 072869 HINES, JR, LORENZO 10/26/09 Hours worked for the w/e 10/23/09 (34 Hours worked for the w/e 10/23/09 (34 001.000.310.514.230.410.00 2,040.00 Total :2,040.00 115055 10/29/2009 013500 HINGSON, ROBERT 74 LEOFF 1 Reimbursement LEOFF 1 Reimbursement 009.000.390.517.370.230.00 22.52 Total :22.52 115056 10/29/2009 072981 HOLLYWOOD LIGHTS INC 17841 HOLIDAY LIGHTS/DOWNTOWN HOLIDAY LIGHTS FOR DOWNTOWN AREA 125.000.640.576.800.310.00 3,000.00 9.5% Sales Tax 125.000.640.576.800.310.00 285.00 Total :3,285.00 115057 10/29/2009 067862 HOME DEPOT CREDIT SERVICES 1033146 0205 20Page: Packet Page 34 of 339 10/29/2009 Voucher List City of Edmonds 21 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115057 10/29/2009 (Continued)067862 HOME DEPOT CREDIT SERVICES SUPPLIES 001.000.640.576.800.310.00 6.48 9.5% Sales Tax 001.000.640.576.800.310.00 0.62 02054030055 FRAME AND POST HINGES 001.000.640.576.800.310.00 12.48 9.5% Sales Tax 001.000.640.576.800.310.00 1.19 Total :20.77 115058 10/29/2009 070864 IDEARC MEDIA CORP 360003040332 C/A 360000657091 Oct-09 Basic e-commerce hosting 001.000.310.518.880.420.00 34.95 C/A 360000764828360003045681 Oct 09 Web Hosting for Internet 001.000.310.518.880.420.00 34.95 C/A 430001405909440010160212 Nov-09 P&R Directory Listing 001.000.310.518.880.420.00 125.25 Total :195.15 115059 10/29/2009 070042 IKON FINANCIAL SERVICES 80639056 COPIER LEASE COPIER LEASE 001.000.640.574.100.450.00 799.04 Total :799.04 115060 10/29/2009 070042 IKON FINANCIAL SERVICES 80619485 INV# 80619485 467070-1005305A3 COMBINED copier rental 10/13-11/12/09 001.000.410.521.100.450.00 340.00 9.5% Sales Tax 001.000.410.521.100.450.00 37.83 additonal images 001.000.410.521.100.450.00 58.22 21Page: Packet Page 35 of 339 10/29/2009 Voucher List City of Edmonds 22 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :436.0511506010/29/2009 070042 070042 IKON FINANCIAL SERVICES 115061 10/29/2009 064934 JOHN BARKER LANDSCAPE 09-05-9 E7MA.Srevices thru May, 2009 E7MA.Srevices thru May, 2009 132.000.640.594.760.410.00 1,507.00 Total :1,507.00 115062 10/29/2009 068737 JOHNSON ROBERTS & ASSOC 112625 INV#112625 EDMONDS PD 3 PREHIRE PHQ REPORTS 001.000.410.521.100.410.00 36.00 Freight 001.000.410.521.100.410.00 2.75 Total :38.75 115063 10/29/2009 066913 KDL HARDWARE SUPPLY INC 412023 Fac Maint - Padlocks, Stock Supplies Fac Maint - Padlocks, Stock Supplies 001.000.651.519.920.310.00 81.84 Freight 001.000.651.519.920.310.00 5.79 9.5% Sales Tax 001.000.651.519.920.310.00 8.32 Total :95.95 115064 10/29/2009 072978 KNUDSON, JOSH KNUDSON1026 REFUND CLASS REFUND 001.000.000.239.200.000.00 220.00 Total :220.00 115065 10/29/2009 072976 KOMPAN INC INV66104 HICKMAN PARK PLAY TOY SIGNS HICKMAN PARK PLAY TOY SIGNS 125.000.640.576.800.310.00 2,176.00 9.5% Sales Tax 125.000.640.576.800.310.00 206.72 Total :2,382.72 115066 10/29/2009 069083 LAMPHERE, KAREN LAMPHERE11698 COOLING INFLAMMATION WITH FOOD 22Page: Packet Page 36 of 339 10/29/2009 Voucher List City of Edmonds 23 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115066 10/29/2009 (Continued)069083 LAMPHERE, KAREN COOLING INFLAMMATION WITH FOOD~ 001.000.640.574.200.410.00 168.00 Total :168.00 115067 10/29/2009 017135 LANDAU ASSOCIATES INC 25711 Tree & Stump Removal Policy Development Tree & Stump Removal Policy Development 001.000.620.532.200.410.00 1,975.00 Total :1,975.00 115068 10/29/2009 067725 LES SCHWAB TIRE CENTER 174118 Street - Dept - Tire Tube 9.5% Sales Tax 111.000.653.542.310.310.00 0.81 Street - Dept - Tire Tube 111.000.653.542.310.310.00 8.49 Total :9.30 115069 10/29/2009 018760 LUNDS OFFICE ESSENTIALS 102598 Letterhead and envelopes for Letterhead and envelopes for 001.000.620.558.800.310.00 452.50 9.5% Sales Tax 001.000.620.558.800.310.00 42.99 Total :495.49 115070 10/29/2009 019582 MANOR HARDWARE 280371-00 Fac Maint - 50' Rope w/ grab/ hooks Fac Maint - 50' Rope w/ grab/ hooks 001.000.651.519.920.350.00 120.00 9.5% Sales Tax 001.000.651.519.920.350.00 11.40 Total :131.40 115071 10/29/2009 061900 MARC 0400431-IN 00-0902224 23Page: Packet Page 37 of 339 10/29/2009 Voucher List City of Edmonds 24 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115071 10/29/2009 (Continued)061900 MARC DISINFECTANT 411.000.656.538.800.310.23 79.00 Freight 411.000.656.538.800.310.23 5.15 9.5% Sales Tax 411.000.656.538.800.310.23 7.99 Total :92.14 115072 10/29/2009 068950 MARYSVILLE FIRE DISTRICT 09-056 TRAINING MISC Nichols Conflct Reslutn 001.000.510.522.400.490.00 99.00 Total :99.00 115073 10/29/2009 066719 MCKENZIE & ADAMS INC 0073225 OVERALLS, JACKET 9.5% Sales Tax 001.000.640.576.800.310.00 7.80 OVERALLS, JACKET 001.000.640.576.800.310.00 82.00 Total :89.80 115074 10/29/2009 063773 MICROFLEX 00018853 Tax Audit Program Tax Audit Program 001.000.310.514.230.410.00 302.27 Total :302.27 115075 10/29/2009 020900 MILLERS EQUIP & RENT ALL INC 97862 CHAINSAW AIR FILTER CHAINSAW AIR FILTER 001.000.640.576.800.310.00 16.17 9.5% Sales Tax 001.000.640.576.800.310.00 1.54 Total :17.71 115076 10/29/2009 020900 MILLERS EQUIP & RENT ALL INC 97673 Wade James - Soil Pipe Cutter Rental 24Page: Packet Page 38 of 339 10/29/2009 Voucher List City of Edmonds 25 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115076 10/29/2009 (Continued)020900 MILLERS EQUIP & RENT ALL INC Wade James - Soil Pipe Cutter Rental 001.000.651.519.920.450.00 16.00 9.5% Sales Tax 001.000.651.519.920.450.00 1.52 Total :17.52 115077 10/29/2009 064570 NATIONAL SAFETY INC 0258852-IN Sewer - RKI Calib Gas Sewer - RKI Calib Gas 411.000.655.535.800.310.00 220.00 Sewer - Rain Gear, Flaggers Vests 411.000.655.535.800.240.00 338.53 Freight 411.000.655.535.800.310.00 7.50 Freight 411.000.655.535.800.240.00 11.55 9.5% Sales Tax 411.000.655.535.800.310.00 21.61 9.5% Sales Tax 411.000.655.535.800.240.00 33.26 Total :632.45 115078 10/29/2009 070109 NAUTILUS ENVIRONMENTAL LLC 3791 DMR STUDY DMR STUDY 411.000.656.538.800.410.31 125.00 Total :125.00 115079 10/29/2009 070788 NETRIVER INC 47048 DOMAIN NAME FEE PUGETSOUNDBIRDFEST.ORG Annual domain name renewal fee for 120.000.310.575.420.410.00 29.90 Total :29.90 115080 10/29/2009 072700 NETWORK HARDWARE RESALE LLC 271885 QUOTE 260205-1 & 260492-1 25Page: Packet Page 39 of 339 10/29/2009 Voucher List City of Edmonds 26 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115080 10/29/2009 (Continued)072700 NETWORK HARDWARE RESALE LLC Cisco Router & Laser WS-C3560G-24TS-S -310-00129 001.000.310.518.880.350.00 2,790.00 Cisco Router & Laser GLC-ZX-SM -310-00129 001.000.310.518.870.350.00 860.00 Freight 001.000.310.518.880.350.00 16.73 Freight 001.000.310.518.870.350.00 5.16 Total :3,671.89 115081 10/29/2009 065315 NEWCOMB, TRACY NEWCOMB11454 FUN FACTORY MINI ME FUN FACTORY #11454 001.000.640.574.200.410.00 495.00 FUN FACTORY #11457 001.000.640.574.200.410.00 904.50 Total :1,399.50 115082 10/29/2009 024960 NORTH COAST ELECTRIC COMPANY S3073865.001 2091 LAMP 411.000.656.538.800.310.22 311.40 9.5% Sales Tax 411.000.656.538.800.310.22 29.58 Total :340.98 115083 10/29/2009 066391 NORTHSTAR CHEMICAL INC 6039 260 SODIUM BISULFITE 411.000.656.538.800.310.54 1,304.27 9.5% Sales Tax 411.000.656.538.800.310.54 123.91 Total :1,428.18 115084 10/29/2009 061013 NORTHWEST CASCADE INC 1-024895 HONEY BUCKET RENTAL HONEY BUCKET RENTAL:~ 001.000.640.576.800.450.00 183.47 26Page: Packet Page 40 of 339 10/29/2009 Voucher List City of Edmonds 27 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115084 10/29/2009 (Continued)061013 NORTHWEST CASCADE INC HONEY BUCKET RENTAL1-025649 HONEY BUCKET RENTAL:~ 001.000.640.576.800.450.00 189.87 HONEY BUCKET RENTAL1-026619 HONEY BUCKET RENTAL:~ 001.000.640.576.800.450.00 189.87 Total :563.21 115085 10/29/2009 025690 NOYES, KARIN 000 00 674 Planning Board minutes for 10/14/09. Planning Board minutes for 10/14/09. 001.000.620.558.600.410.00 352.00 Historic Preservation Commission000 00 675 Historic Preservation Commission 001.000.620.558.600.410.00 128.00 Total :480.00 115086 10/29/2009 063511 OFFICE MAX INC 858317 Calculator paper rolls/2010 wall Calculator paper rolls/2010 wall 001.000.310.514.230.310.00 79.56 9.5% Sales Tax 001.000.310.514.230.310.00 7.56 Total :87.12 115087 10/29/2009 063511 OFFICE MAX INC 568763 520437 DESKPAD CALENDAR 411.000.656.538.800.310.41 16.02 9.5% Sales Tax 411.000.656.538.800.310.41 1.52 520437797150 LAMINATING POUCHES/LABELS/INJET 411.000.656.538.800.310.41 136.56 9.5% Sales Tax 411.000.656.538.800.310.41 12.98 Total :167.08 27Page: Packet Page 41 of 339 10/29/2009 Voucher List City of Edmonds 28 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115088 10/29/2009 063511 OFFICE MAX INC 693027 OFFICE SUPPLIES Office Supplies 001.000.250.514.300.310.00 83.36 9.5% Sales Tax 001.000.250.514.300.310.00 7.92 OFFICE SUPPLIES854897 Office Supplies 001.000.250.514.300.310.00 216.87 9.5% Sales Tax 001.000.250.514.300.310.00 20.60 Total :328.75 115089 10/29/2009 063511 OFFICE MAX INC 858580 PW Office Supplies - Staple removers, PW Office Supplies - Staple removers, 001.000.650.519.910.310.00 67.68 9.5% Sales Tax 001.000.650.519.910.310.00 6.43 Street - Sign Shop - Ink cartridge871054 Street - Sign Shop - Ink cartridge 111.000.653.542.900.310.00 90.40 9.5% Sales Tax 111.000.653.542.900.310.00 8.59 Total :173.10 115090 10/29/2009 063511 OFFICE MAX INC 793918 Credit for calendar received in error Credit for calendar received in error 001.000.620.558.800.310.00 -11.11 9.5% Sales Tax 001.000.620.558.800.310.00 -1.05 Credit for calendar received in error793931 Credit for calendar received in error 001.000.620.558.800.310.00 -11.11 9.5% Sales Tax 001.000.620.558.800.310.00 -1.05 28Page: Packet Page 42 of 339 10/29/2009 Voucher List City of Edmonds 29 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115090 10/29/2009 (Continued)063511 OFFICE MAX INC Misc. office supplies including816194 Misc. office supplies including 001.000.620.558.800.310.00 352.64 9.5% Sales Tax 001.000.620.558.800.310.00 33.50 Office supplies - 2 back ordered820827 Office supplies - 2 back ordered 001.000.620.558.800.310.00 24.70 9.5% Sales Tax 001.000.620.558.800.310.00 2.35 Total :388.87 115091 10/29/2009 063511 OFFICE MAX INC 668175 INV# 668175 ACCT#520437 250POL EDMONDS CASE PURELL HAND SANITIZER 001.000.410.521.100.310.00 68.89 9.5% Sales Tax 001.000.410.521.100.310.00 6.55 INV# 869598 ACCT 520437 250POL EDMONDS869598 BOISE X-9 PAPER 001.000.410.521.100.310.00 332.90 BINDER CLIPS - SMALL 001.000.410.521.100.310.00 1.00 RECYCLED 8.5X11 PAPER PADS 001.000.410.521.100.310.00 12.44 ADJUST. MONITOR STAND 001.000.410.521.220.310.00 30.93 9.5% Sales Tax 001.000.410.521.100.310.00 32.90 9.5% Sales Tax 001.000.410.521.220.310.00 2.94 Total :488.55 115092 10/29/2009 025889 OGDEN MURPHY AND WALLACE 678673 SEPT-09 LEGAL FEES Sept-09 Itemized legal fees 001.000.360.515.100.410.00 7,071.54 29Page: Packet Page 43 of 339 10/29/2009 Voucher List City of Edmonds 30 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115092 10/29/2009 (Continued)025889 OGDEN MURPHY AND WALLACE SEPT-09 RETAINER FEES678675 Sept-09 retainer fees 001.000.360.515.100.410.00 28,191.74 Total :35,263.28 115093 10/29/2009 025889 OGDEN MURPHY AND WALLACE 678675 Pro Serve Legis Legal Fees Sept 2009 Pro Serve Legis Legal Fees Sept 2009 001.000.110.511.100.410.00 6,485.30 Total :6,485.30 115094 10/29/2009 060945 PACIFIC POWER BATTERIES 11227153 Water - 3V Lithium Batteries Water - 3V Lithium Batteries 411.000.654.534.800.310.00 92.00 Freight 411.000.654.534.800.310.00 6.37 Sales Tax 411.000.654.534.800.310.00 9.05 Total :107.42 115095 10/29/2009 066817 PANASONIC DIGITAL DOCUMENT COM 011231336 COPIER CONTRACT COPIER CONTRACT 411.000.656.538.800.450.41 145.22 9.5% Sales Tax 411.000.656.538.800.450.41 13.45 Total :158.67 115096 10/29/2009 072954 PARK, SONG CRA20090077 Critical Areas payment refunded. One Critical Areas payment refunded. One 001.000.000.257.620.000.00 155.00 Total :155.00 115097 10/29/2009 027165 PARKER PAINT MFG. CO.INC.883545 Sr Center - Paint Supplies Sr Center - Paint Supplies 001.000.651.519.920.310.00 91.76 9.5% Sales Tax 001.000.651.519.920.310.00 8.71 30Page: Packet Page 44 of 339 10/29/2009 Voucher List City of Edmonds 31 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115097 10/29/2009 (Continued)027165 PARKER PAINT MFG. CO.INC. Fac Maint - Ext Pole884012 Fac Maint - Ext Pole 001.000.651.519.920.310.00 29.33 9.5% Sales Tax 001.000.651.519.920.310.00 2.79 Total :132.59 115098 10/29/2009 069944 PECK, ELIZABETH PECK11629 PRESCHOOL PREP CLASS LITTLE FISHES PRESCHOOL PREP~ 001.000.640.574.200.410.00 369.60 Total :369.60 115099 10/29/2009 071811 PONY MAIL BOX & BUSINESS CTR 179073 Street - Information Display Co. return Street - Information Display Co. return 111.000.653.542.900.420.00 14.29 Sewer - Cues return postage179367 Sewer - Cues return postage 411.000.655.535.800.420.00 35.52 Water/Sewer/Street/Storm - Dept of L&I179445 Water/Sewer/Street/Storm - Dept of L&I 111.000.653.542.900.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.652.542.900.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.654.534.800.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.655.535.800.420.00 2.14 31Page: Packet Page 45 of 339 10/29/2009 Voucher List City of Edmonds 32 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115099 10/29/2009 (Continued)071811 PONY MAIL BOX & BUSINESS CTR Water/Sewer/Street/Storm - Dept of L&I179602 Water/Sewer/Street/Storm - Dept of L&I 111.000.653.542.900.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.652.542.900.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.654.534.800.420.00 2.16 Water/Sewer/Street/Storm - Dept of L&I 411.000.655.535.800.420.00 2.14 Total :67.05 115100 10/29/2009 069685 PRO-VAC 090826-010 Cemetary - CCTV Inspection of Storm & Cemetary - CCTV Inspection of Storm & 001.000.651.519.920.480.00 972.75 9.5% Sales Tax 001.000.651.519.920.480.00 92.41 Total :1,065.16 115101 10/29/2009 064088 PROTECTION ONE 291104 24 HOUR ALARM MONITORING-PARKS 24 HOUR ALARM MONITORING-PARKS 001.000.651.519.920.420.00 47.17 24 HOUR ALARM MONITORING-PARKS 001.000.640.576.800.420.00 47.17 Fire Monitoring F/S 16 001.000.651.519.920.420.00 94.50 Total :188.84 115102 10/29/2009 068697 PUBLIC SAFETY TESTING INC 2009-2956 3rd quarter subscription fees (PD 3rd quarter subscription fees (PD 001.000.220.516.210.410.00 700.00 Total :700.00 115103 10/29/2009 046900 PUGET SOUND ENERGY 7918807004 YOST POOL YOST POOL 001.000.640.576.800.470.00 2,295.60 32Page: Packet Page 46 of 339 10/29/2009 Voucher List City of Edmonds 33 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :2,295.6011510310/29/2009 046900 046900 PUGET SOUND ENERGY 115104 10/29/2009 046900 PUGET SOUND ENERGY 084-904-700-6 WWTP PUGET SOUND ENERGY WWTP PUGET SOUND ENERGY 411.000.656.538.800.472.63 847.45 Total :847.45 115105 10/29/2009 046900 PUGET SOUND ENERGY 0101874006 LIBRARY LIBRARY 001.000.651.519.920.470.00 574.78 PARK & BUILDING MAINTENANCE SHOP0230757007 PARK & BUILDING MAINTENANCE SHOP 001.000.651.519.920.470.00 148.78 LIFT STATION #71916766007 LIFT STATION #7 411.000.655.535.800.470.00 33.81 PUBLIC SAFETY-POLICE,CRT & COUNCIL2753166004 PUBLIC SAFETY-POLICE,CRT & COUNCEL 001.000.651.519.920.470.00 434.50 Public Works2776365005 Public Works 001.000.650.519.910.470.00 11.35 Public Works 111.000.653.542.900.470.00 43.14 Public Works 411.000.654.534.800.470.00 43.14 Public Works 411.000.655.535.800.470.00 43.14 Public Works 511.000.657.548.680.470.00 43.14 Public Works 411.000.652.542.900.470.00 43.13 FLEET5903085008 Fleet 7110 210th St SW 511.000.657.548.680.470.00 238.37 33Page: Packet Page 47 of 339 10/29/2009 Voucher List City of Edmonds 34 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115105 10/29/2009 (Continued)046900 PUGET SOUND ENERGY PUBLIC SAFETY-FIRE STATION6439566008 PUBLIC SAFETY-FIRE STATION 001.000.651.519.920.470.00 283.91 ANDERSON CENTER6490327001 ANDERSON CENTER 001.000.651.519.920.470.00 1,425.49 LIFT STATION #88851908007 LIFT STATION #8 411.000.655.535.800.470.00 54.94 FIRE STATION #209919661109 FIRE STATION #20 001.000.651.519.920.470.00 105.17 Total :3,526.79 115106 10/29/2009 072254 RIVER OAKS COMMUNICATIONS CORP 10222009 VERIZON/FRONTIER TRANSFER CONSORTIUM Verizon/Frontier Transfer Consortium 001.000.610.519.700.410.00 2,572.04 COMCAST CABLE FRANCHISE CONSORTIUM10262009 Comcast Cable franchise negotiations 001.000.610.519.700.410.00 197.45 Total :2,769.49 115107 10/29/2009 032666 ROTO ROOTER 21715239478 Cemetary - Sewer lines Jett Cemetary - Sewer lines Jett 001.000.651.519.920.480.00 722.95 9.5% Sales Tax 001.000.651.519.920.480.00 68.68 Total :791.63 115108 10/29/2009 071979 SACKVILLE, JODI L 10/20/09 OT for sick leave buy back not bought OT for sick leave buy back not bought 001.000.410.521.220.110.00 88.31 OT for sick leave not bought back for10/22/09 OT for sick leave not bought back for 001.000.410.521.220.110.00 88.31 34Page: Packet Page 48 of 339 10/29/2009 Voucher List City of Edmonds 35 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :176.6211510810/29/2009 071979 071979 SACKVILLE, JODI L 115109 10/29/2009 061482 SEA-WESTERN INC 138110 PROTECTIVE CLOTHING gloves 001.000.510.522.200.250.00 317.50 Freight 001.000.510.522.200.250.00 7.99 9.5% Sales Tax 001.000.510.522.200.250.00 30.92 Total :356.41 115110 10/29/2009 067076 SEATTLE PUMP AND EQUIPMENT CO 09-3277 Sewer - Meg Nozzles Sewer - Meg Nozzles 411.000.655.535.800.310.00 79.50 9.5% Sales Tax 411.000.655.535.800.310.00 7.56 Total :87.06 115111 10/29/2009 037375 SNO CO PUD NO 1 2710014701 MAPLEWOOD HILL PARK MAPLEWOOD HILL PARK 001.000.640.576.800.470.00 29.05 BALLINGER PARK IRRIGATION5680012803 BALLINGER PARK IRRIGATION 001.000.640.576.800.470.00 30.60 Total :59.65 115112 10/29/2009 037375 SNO CO PUD NO 1 112-000-511-9 22000 84TH AVE W Traffic Signal 220th St SW & 84th Ave W 111.000.653.542.640.470.00 66.50 SIGNAL LIGHT2060014392 SIGNAL LIGHT 111.000.653.542.640.470.00 28.54 STREET LIGHT2060015456 STREET LIGHT 111.000.653.542.640.470.00 29.07 35Page: Packet Page 49 of 339 10/29/2009 Voucher List City of Edmonds 36 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115112 10/29/2009 (Continued)037375 SNO CO PUD NO 1 SIGNAL LIGHT2470018124 SIGNAL LIGHT 111.000.653.542.640.470.00 34.46 fire station # 162540794324 fire station # 16 001.000.651.519.920.470.00 1,288.10 LIFT STATION #92790012476 LIFT STATION #9 411.000.655.535.800.470.00 159.06 SIGNAL LIGHT2900012432 SIGNAL LIGHT 111.000.653.542.640.470.00 29.12 LIFT STATION #32960019335 LIFT STATION #3 411.000.655.535.800.470.00 103.49 SCHOOL FLASHING LIGHT3380016422 SCHOOL FLASHING LIGHT 111.000.653.542.640.470.00 30.53 FIVE CORNERS WATER TANK3460019262 FIVE CORNERS WATER TANK 411.000.654.534.800.470.00 284.76 FIVE CORNERS WATER TANK3460019262 FIVE CORNERS WATER TANK 411.000.654.534.800.470.00 4.57 Traffic Control Light3630573867 Traffic Control Light 111.000.653.542.630.470.00 71.97 LIBRARY3720012057 LIBRARY 001.000.651.519.920.470.00 1,941.50 Ballinger Lift Station 7403 Ballinger3900430020 Ballinger Lift Station 7403 Ballinger 411.000.655.535.800.470.00 29.12 36Page: Packet Page 50 of 339 10/29/2009 Voucher List City of Edmonds 37 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115112 10/29/2009 (Continued)037375 SNO CO PUD NO 1 BLINKING LIGHT3970013599 BLINKING LIGHT 111.000.653.542.640.470.00 29.48 STREET LIGHT4220016176 STREET LIGHT 111.000.653.542.630.470.00 38.94 SIGNAL LIGHT4320010194 SIGNAL LIGHT 111.000.653.542.640.470.00 34.65 STREET LIGHT4430018418 STREET LIGHT 111.000.653.542.640.470.00 41.73 Lift Station #6 100 Pine St4670302498 Lift Station #6 100 Pine St 411.000.655.535.800.470.00 183.14 TRAFFIC SIGNAL4680011956 TRAFFIC SIGNAL 111.000.653.542.640.470.00 91.48 Public Works4840011953 Public Works 001.000.650.519.910.470.00 74.49 Public Works 111.000.653.542.900.470.00 283.07 Public Works 411.000.654.534.800.470.00 283.07 Public Works 411.000.655.535.800.470.00 283.07 Public Works 511.000.657.548.680.470.00 283.07 Public Works 411.000.652.542.900.470.00 283.06 STREET LIGHT4860014960 STREET LIGHT 111.000.653.542.640.470.00 39.05 37Page: Packet Page 51 of 339 10/29/2009 Voucher List City of Edmonds 38 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115112 10/29/2009 (Continued)037375 SNO CO PUD NO 1 PUBLIC SAFETY COMPLEX5390028164 PUBLIC SAFETY COMPLEX 001.000.651.519.920.470.00 4,599.64 CITY HALL5410010689 CITY HALL 001.000.651.519.920.470.00 2,389.21 SIGNAL LIGHT5450011118 SIGNAL LIGHT 111.000.653.542.640.470.00 99.28 TRAFFIC LIGHT5450016042 TRAFFIC LIGHT 111.000.653.542.640.470.00 140.27 SCHOOL FLASHING LIGHTS5470012336 SCHOOL FLASHING LIGHTS 111.000.653.542.640.470.00 29.48 TRAFFIC LIGHT5510015661 TRAFFIC LIGHT 111.000.653.542.640.470.00 31.03 Fire station #167060000275 Fire station #16 001.000.651.519.920.470.00 29.37 Total :13,367.37 115113 10/29/2009 038100 SNO-KING STAMP 43459 Stamp for Building Dept. "Agreed to by Stamp for Building Dept. "Agreed to by 001.000.620.558.800.310.00 29.17 Stamp for Building Dept. "Northing in43495 Stamp for Building Dept. "Northing in 001.000.620.558.800.310.00 33.04 Total :62.21 115114 10/29/2009 038410 SOUND SAFETY PRODUCTS 4155727-01 HIP BOOTS/BOOT SAVERS/DANIELSON 38Page: Packet Page 52 of 339 10/29/2009 Voucher List City of Edmonds 39 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115114 10/29/2009 (Continued)038410 SOUND SAFETY PRODUCTS HIP BOOTS/BOOT SAVERS/DANIELSON 411.000.656.538.800.240.00 180.97 9.5% Sales Tax 411.000.656.538.800.240.00 17.19 Total :198.16 115115 10/29/2009 072979 SPORTSWISE SPORTWISE1026 DAMAGE DEPOSIT REFUND REFUND OF DAMAGE DEPOSIT MINUS EXTRA 001.000.000.239.200.000.00 155.00 Total :155.00 115116 10/29/2009 040430 STONEWAY ELECTRIC SUPPLY 2005344 Library - Elect Supplies Library - Elect Supplies 001.000.651.519.920.310.00 57.97 Park Bldg - Elect Supplies 001.000.651.519.920.310.00 21.48 9.5% Sales Tax 001.000.651.519.920.310.00 7.55 Total :87.00 115117 10/29/2009 040917 TACOMA SCREW PRODUCTS INC 10879441 100323 HEX CAP SCREW 411.000.656.538.800.310.21 123.00 9.5% Sales Tax 411.000.656.538.800.310.21 11.69 10032310879442 LATEX GLOVES 411.000.656.538.800.310.21 370.00 9.5% Sales Tax 411.000.656.538.800.310.21 35.15 39Page: Packet Page 53 of 339 10/29/2009 Voucher List City of Edmonds 40 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115117 10/29/2009 (Continued)040917 TACOMA SCREW PRODUCTS INC 10032310879443 HEX CAP SCREW 411.000.656.538.800.310.21 39.75 Freight 411.000.656.538.800.310.21 5.70 9.5% Sales Tax 411.000.656.538.800.310.21 4.32 10032310880514 HEX CAP SCREW 411.000.656.538.800.310.21 57.00 9.5% Sales Tax 411.000.656.538.800.310.21 5.42 10032318884250 HEX CAP SCREW/GLOVES 411.000.656.538.800.310.21 95.35 9.5% Sales Tax 411.000.656.538.800.310.21 9.06 10032318884490 NUTS & BOLTS 411.000.656.538.800.310.21 291.32 9.5% Sales Tax 411.000.656.538.800.310.21 27.68 Total :1,075.44 115118 10/29/2009 040916 TC SPAN AMERICA 49718 Sewer - 4 Denim Work Shirts, 5 Cotten Sewer - 4 Denim Work Shirts, 5 Cotten 411.000.655.535.800.240.00 203.00 9.5% Sales Tax 411.000.655.535.800.240.00 19.29 Total :222.29 115119 10/29/2009 009350 THE DAILY HERALD COMPANY 1670027 NEWSPAPER AD Ordinance 3757 001.000.250.514.300.440.00 171.00 40Page: Packet Page 54 of 339 10/29/2009 Voucher List City of Edmonds 41 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115119 10/29/2009 (Continued)009350 THE DAILY HERALD COMPANY NEWSPAPER AD1670029 Ordinance 3756 001.000.250.514.300.440.00 31.60 NEWSPAPER AD1670030 Ordinance 3755 001.000.250.514.300.440.00 31.60 NEWSPAPER AD1670031 Ordinance 3754 001.000.250.514.300.440.00 36.52 NEWSPAPER AD1670033 Ordinance 3753 001.000.250.514.300.440.00 38.16 NEWSPAPER AD1670465 10/20 Hearding (FD1) 001.000.250.514.300.440.00 57.84 Total :366.72 115120 10/29/2009 065459 THE HERALD SUBSCRIPTION 10015985 1 Yr Subscription - PW Admin~ 1 Yr Subscription - PW Admin~ 001.000.650.519.910.490.00 168.00 Total :168.00 115121 10/29/2009 072146 TRUAX, BREANNE 102109 MONITOR FOR EC DEV COMM MTG 10/21/09 Monitor for10/21/09 Economic Commission 001.000.240.513.110.490.00 36.00 Total :36.00 115122 10/29/2009 072146 TRUAX, BREANNE TRUAX1025 PLAZA ROOM MONITOR PLAZA ROOM MONITOR 001.000.640.574.100.410.00 120.00 Total :120.00 115123 10/29/2009 061192 UNITED PIPE & SUPPLY 8327673 Water - 24 Meter Boxes, 24 Lids 41Page: Packet Page 55 of 339 10/29/2009 Voucher List City of Edmonds 42 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115123 10/29/2009 (Continued)061192 UNITED PIPE & SUPPLY Water - 24 Meter Boxes, 24 Lids 411.000.654.534.800.310.00 1,690.09 9.5% Sales Tax 411.000.654.534.800.310.00 160.56 Meter Inventory - M-MTRTRPL-0.625-0108347043 Meter Inventory - M-MTRTRPL-0.625-010 411.000.654.534.800.342.00 2,933.04 9.5% Sales Tax 411.000.654.534.800.342.00 278.64 Total :5,062.33 115124 10/29/2009 062693 US BANK 3348 PayPal - APWA Class - N Miller PayPal - APWA Class - N Miller 001.000.650.519.910.490.00 37.00 Svc Fees 001.000.650.519.910.490.00 2.00 Svc Fees3405 Svc Fees 001.000.651.519.920.490.00 5.30 UPS - Sewer - Cues ReturnPostage3546 UPS - Sewer - Cues ReturnPostage 411.000.655.535.800.420.00 4.80 Dept of L&I - Parks Bldg - Elect Permit 001.000.651.519.920.310.00 61.30 Amer PW - Street/Storm WebCast 111.000.653.542.900.490.00 175.00 Bulger Safe & Lock - FS 20 - Lock 001.000.510.522.200.310.00 90.34 Svc Fees 001.000.650.519.910.490.00 2.00 Total :377.74 115125 10/29/2009 068724 US HEALTHWORKS MED GROUP OF WA0283902-WA Street - DOT Street - DOT 111.000.653.542.900.410.00 65.00 42Page: Packet Page 56 of 339 10/29/2009 Voucher List City of Edmonds 43 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :65.0011512510/29/2009 068724 068724 US HEALTHWORKS MED GROUP OF WA 115126 10/29/2009 069592 USA MOBILITY WIRELESS S0298897J INV S0298897J EDMONDS PD PAGER SERVICE 10/27-11/26/09 001.000.410.521.100.420.00 167.29 Total :167.29 115127 10/29/2009 044960 UTILITIES UNDERGROUND LOC CTR 9090108 utility locates utility locates 411.000.654.534.800.410.00 96.17 utility locates 411.000.655.535.800.410.00 96.17 utility locates 411.000.652.542.900.410.00 96.21 Total :288.55 115128 10/29/2009 011900 VERIZON NORTHWEST 425-AB8-2844 POLICE T1 LINE Police T1 Line 10/10-11/10/09 001.000.310.518.880.420.00 375.97 Total :375.97 115129 10/29/2009 011900 VERIZON NORTHWEST 425-206-7147 LIBRARY SCAN ALARM LIBRARY SCAN ALARM 001.000.651.519.920.420.00 14.96 MEADOWDALE COMMUNITY CLUB-SCAN ALARM425-206-8379 MEADOWDALE COMMUNITY CLUB-SCAN ALARM 001.000.651.519.920.420.00 14.96 FLEET MAINTENANCE FAX LINE425-672-7132 FLEET MAINTENANCE FAX LINE 511.000.657.548.680.420.00 94.71 TELEMETRY STATIONS425-712-0417 TELEMETRY STATIONS 411.000.654.534.800.420.00 27.48 TELEMETRY STATIONS 411.000.655.535.800.420.00 27.47 43Page: Packet Page 57 of 339 10/29/2009 Voucher List City of Edmonds 44 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115129 10/29/2009 (Continued)011900 VERIZON NORTHWEST P/W FIRE ALARM, FAX LINE & 2 SPARE LINES425-712-8251 P/W FIRE ALARM, FAX LINE & 2 SPARE LINES 001.000.650.519.910.420.00 14.14 P/W FIRE ALARM, FAX LINE & 2 SPARE LINES 111.000.653.542.900.420.00 70.68 P/W FIRE ALARM, FAX LINE & 2 SPARE LINES 411.000.654.534.800.420.00 57.96 P/W FIRE ALARM, FAX LINE & 2 SPARE LINES 411.000.655.535.800.420.00 57.96 P/W FIRE ALARM, FAX LINE & 2 SPARE LINES 511.000.657.548.680.420.00 81.99 Sewer - Lift Station New Line425-774-1031 Sewer - Lift Station New Line 411.000.655.535.800.480.00 318.85 Sewer lift Station Service 411.000.655.535.800.420.00 44.38 TELEMETRY LIFT STATIONS425-775-1534 TELEMETRY LIFT STATIONS 411.000.654.534.800.420.00 160.37 TELEMETRY LIFT STATIONS 411.000.655.535.800.420.00 297.84 PUBLIC SAFETY FIRE ALARM425-775-2455 PUBLIC SAFETY FIRE ALARM 001.000.651.519.920.420.00 49.63 Radio Line between Public Works & UB425-775-7865 Radio Line between Public Works & UB 411.000.654.534.800.420.00 52.61 LIBRARY ELEVATOR PHONE425-776-1281 LIBRARY ELEVATOR PHONE 001.000.651.519.920.420.00 42.68 FRANCES ANDERSON FIRE ALARM SYSTEM425-776-3896 FRANCES ANDERSON FIRE ALARM SYSTEM 001.000.651.519.920.420.00 113.31 44Page: Packet Page 58 of 339 10/29/2009 Voucher List City of Edmonds 45 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115129 10/29/2009 (Continued)011900 VERIZON NORTHWEST PUBLIC WORKS CPNNECTION TO 911425-RT0-9133 Public Works Connection to 911 001.000.650.519.910.420.00 5.48 Public Works Connection to 911 111.000.653.542.900.420.00 20.81 Public Works Connection to 911 411.000.654.534.800.420.00 20.81 Public Works Connection to 911 411.000.655.535.800.420.00 20.81 Public Works Connection to 911 511.000.657.548.680.420.00 20.81 Public Works Connection to 911 411.000.652.542.900.420.00 20.78 Total :1,651.48 115130 10/29/2009 011900 VERIZON NORTHWEST 425-NW4-3726 FRAME RELAY FOR FS #20 & SNOCOM FRAME RELAY FOR FS #20 & SNOCOM 001.000.510.528.600.420.00 247.00 Total :247.00 115131 10/29/2009 067865 VERIZON WIRELESS 0805999447 C/A 671247844-00001 45Page: Packet Page 59 of 339 10/29/2009 Voucher List City of Edmonds 46 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 115131 10/29/2009 (Continued)067865 VERIZON WIRELESS 9/13-10/12/09 Cell Service-Bldg 001.000.620.524.100.420.00 119.55 9/13-10/12/09 Cell Service-Eng 001.000.620.532.200.420.00 215.92 9/13-10/12/09 Cell Service Fac-Maint 001.000.651.519.920.420.00 149.39 9/13-10/12/09 Cell Service-Fire OPS 001.000.510.522.200.420.00 177.80 9/13-10/12/09 Cell Service-Fire Admin 001.000.510.522.100.420.00 35.56 9/13-10/12/09 Cell Service-Parks 001.000.640.574.350.420.00 13.17 9/13-10/12/09 Cell Service Parks Maint 001.000.640.576.800.420.00 57.37 9/13-10/12/09 Cell Service-PD 001.000.410.521.100.420.00 608.10 9/13-10/12/09 Cell Service-Planning 001.000.620.558.600.420.00 26.34 9/13-10/12/09 Cell Service-PW Street 111.000.653.542.900.420.00 26.34 9/13-10/12/09 Cell Service-PW Storm 411.000.652.542.900.420.00 39.81 9/13-10/12/09 Cell Service-PW Water 411.000.654.534.800.420.00 39.43 9/13-10/12/09 Cell Service-PW Sewer 411.000.655.535.800.420.00 3.99 9/13-10/12/09 Cell Service-PW Fleet 511.000.657.548.680.420.00 13.17 9/13-10/12/09 Cell Service-WWTP 411.000.656.538.800.420.00 41.00 Total :1,566.94 115132 10/29/2009 070717 WSU URBAN & PESTICIDE SAFETY TIMBROOK/EDHOUSE PESTICIDE RECERTIFICATION 2009-2010 PESTICIDE RECERTIFICATION FOR 001.000.640.576.800.490.00 200.00 46Page: Packet Page 60 of 339 10/29/2009 Voucher List City of Edmonds 47 12:00:53PM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :200.0011513210/29/2009 070717 070717 WSU URBAN & PESTICIDE SAFETY Bank total :518,862.77151 Vouchers for bank code :front 518,862.77Total vouchers :Vouchers in this report151 47Page: Packet Page 61 of 339 AM-2570 2.D. Claims for Damages Edmonds City Council Meeting Date:11/02/2009 Submitted By:Linda Hynd Submitted For:Sandy Chase Time:Consent Department:City Clerk's Office Type:Action Review Committee: Committee Action: Information Subject Title Acknowledge receipt of Claims for Damages from Randall Baird (amount undetermined), K. Fred Breske ($500,000), Donna L. Breske ($500,000), 9330 LLC ($500,000), and Scott Conahan ($686.27). Recommendation from Mayor and Staff It is recommended that the City Council acknowledge receipt of the Claims for Damages by minute entry. Previous Council Action N/A Narrative Randall Baird 15638 NE 202nd Street Woodinville, WA 98072 (amount undetermined) K. Fred Breske 6621 Foster Slough Rd. Snohomish, WA 98290 ($500,000) Donna L. Breske 6621 Foster Slough Rd. Snohomish, WA 98290 ($500,000) 9330 LLC 6621 Foster Slough Rd. Snohomish, WA 98290 ($500,000) Scott Conahan Packet Page 62 of 339 15927 75th Place West Edmonds, WA 98026 ($686.27) Fiscal Impact Attachments Link: Baird Claim for Damages Link: Breske, K. Fred Claim for Damages Link: Breske, Donna L. Claim for Damages Link: Breske - 9330 LLC Claim for Damages Link: Conahan Claim for Damages Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 09:31 AM APRV 2 Mayor Gary Haakenson 10/29/2009 10:37 AM APRV 3 Final Approval Sandy Chase 10/29/2009 12:32 PM APRV Form Started By: Linda Hynd  Started On: 10/26/2009 08:51 AM Final Approval Date: 10/29/2009 Packet Page 63 of 339 Packet Page 64 of 339 Packet Page 65 of 339 Packet Page 66 of 339 Packet Page 67 of 339 Packet Page 68 of 339 Packet Page 69 of 339 Packet Page 70 of 339 Packet Page 71 of 339 Packet Page 72 of 339 Packet Page 73 of 339 Packet Page 74 of 339 Packet Page 75 of 339 Packet Page 76 of 339 Packet Page 77 of 339 Packet Page 78 of 339 Packet Page 79 of 339 Packet Page 80 of 339 Packet Page 81 of 339 Packet Page 82 of 339 Packet Page 83 of 339 Packet Page 84 of 339 Packet Page 85 of 339 Packet Page 86 of 339 Packet Page 87 of 339 Packet Page 88 of 339 Packet Page 89 of 339 Packet Page 90 of 339 Packet Page 91 of 339 AM-2573 2.E. Authorization to Fund Energy Improvements at the Wastewater Treatment Plant Edmonds City Council Meeting Date:11/02/2009 Submitted By:Steve Koho Time:Consent Department:Wastewater Treatment Plant Type:Action Review Committee: Committee Action: Information Subject Title Authorization for Mayor to sign funding agreements with the Washington State General Administration for an energy efficiency improvement project at the Wastewater Treatment Plant. Recommendation from Mayor and Staff Authorize the Mayor to sign funding agreements with the Washington State General Administration for an energy efficiency improvement project at the Wastewater Treatment Plant. Previous Council Action None Narrative There is a need to replace a failed piece of a major capital equipment component (an electronic drive for a blower) at the Treatment Plant. The Washington State General Administration Department administers a program to design and construct capital projects that save energy and are financed using a low interest loan from the State Treasury. The program is structured such that the money saved from performing the project is sufficient to pay the debt service on the loan. The term of the loan from the State Treasury is 10 years, after which energy savings will continue to provide lower operating expenses. Public agencies are therefore able to complete energy saving capital projects without increasing their net operating costs. The proposed project replaces the faulty blower drive and the blower itself, an improved air diffuser system and a conversion to allow the use of natural gas in place of diesel fuel. These three improvements are expected to save approximately $37,000 per year in utility expenses. There is no net capital contribution by the City for this project, due to the ability to receive a low interest loan. The Snohomish County PUD is expected to provide a rebate of approximately $145,000 as part of their incentive program to encourage businesses to improve their electrical conservation. Other participating agencies in the Treatment Plant will pay for approximately 50% of the remaining capital expense. $300,000 has been allocated for this project in 2009-10 as part of the Treatment Plant Capital Improvement Plan (CIP), and the project expenses will be borrowed and paid back from energy savings. The current CIP is attached, and the line item "Upgrades" includes $200,000 in 2009 and $100,000 in 2010 for this project. Packet Page 92 of 339 Engineering audit $25,000 Design fees $98,876 Construction $375,057 Project mngmt fee $31,900 TOTAL COST $530,833 less PUD refund $145,166 Estimated net cost $385,667 less contr from agencies $188,977 Net amount to borrow $196,690 Fiscal Impact Attachments Link: GA funding forms Link: 7 year CIP Form Routing/Status Route Seq Inbox Approved By Date Status 1 Public Works Noel Miller 10/29/2009 10:45 AM APRV 2 City Clerk Sandy Chase 10/29/2009 12:31 PM APRV 3 Mayor Gary Haakenson 10/29/2009 12:33 PM APRV 4 Final Approval Sandy Chase 10/29/2009 01:24 PM APRV Form Started By: Steve Koho  Started On: 10/28/2009 12:38 PM Final Approval Date: 10/29/2009 Packet Page 93 of 339 Packet Page 94 of 339 Packet Page 95 of 339 Packet Page 96 of 339 Packet Page 97 of 339 Ca p i t a l I m p r o v e m e n t s P r o g r a m As s u m e s a g e n c i e s c o n t i n u e t o c o n t r i b u t e $ 1 0 0 k , a n d m a k e a d d i t i o n a l a n n u a l c o n t r i b u t i o n a s n e e d e d t o m a i n t a i n $ 2 0 0 k f u n d b a l a n c e Al l e x p e n s e s f o r c a p i t a l p r o j e c t s a r e b i l l e d d i r e c t l y t o P a r t i c i p a n t s , w i t h n o n e w e x p e n s e s b e i n g p a i d f r o m F u n d 4 1 4 Ca p i t a l I m p r o v e m e n t s - F u n d 4 1 4 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 2 0 1 4 2 0 1 5 Re p a i r a n d R e p l a c e m e n t $0 $0 $0 $0 $0 $0 Up g r a d e s $7 9 , 6 0 0 $0 $0 $0 $0 $0 $0 St u d i e s a n d c o n s u l t i n g De b t S e r v i c e - P r i n c i p l e a n d I n t e r e s t $2 7 6 , 4 6 0 $2 7 6 , 4 6 0 $2 7 6 , 0 4 0 $2 7 1 , 9 1 0 $2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 To t a l T r e a t m e n t P l a n t P r o j e c t s $3 5 6 , 0 6 0 $2 7 6 , 4 6 0 $2 7 6 , 0 4 0 $2 7 1 , 9 1 0 $2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 Fu n d 4 1 4 R e v e n u e Be g i n n i n g C a s h B a l a n c e $2 0 0 , 0 0 1 $2 0 7 , 9 4 1 $2 3 5 , 4 8 1 $2 1 3 , 4 4 0 $2 1 5 , 5 3 0 $ 2 1 8 , 3 4 0 $ 2 2 1 , 1 5 0 In t e r g o v e r n m e n t a l $2 0 0 , 0 0 0 $2 0 0 , 0 0 0 $2 0 0 , 0 0 0 $1 0 0 , 0 0 0 $1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 In t e r e s t E a r n i n g s $4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) $ 4 , 0 0 0 ( 1 ) Mi s c e l l a n e o u s ( b i o s o l i d s , L y n n w o o d , e t c ) Re b a t e f r o m P U D f o r E n e r g y E f f . p r o j e c t $1 0 0 , 0 0 0 Su b t o t a l $4 0 4 , 0 0 1 $5 1 1 , 9 4 1 $4 3 9 , 4 8 1 $3 1 7 , 4 4 0 $3 1 9 , 5 3 0 $ 3 2 2 , 3 4 0 $ 3 2 5 , 1 5 0 Ad d i t i o n a l a g e n c y c o n t r i b u t i o n $1 6 0 , 0 0 0 $5 0 , 0 0 0 $1 7 0 , 0 0 0 $1 7 5 , 0 0 0 $ 1 7 5 , 0 0 0 $ 1 7 5 , 0 0 0 To t a l R e v e n u e s $5 6 4 , 0 0 1 $5 1 1 , 9 4 1 $4 8 9 , 4 8 1 $4 8 7 , 4 4 0 $4 9 4 , 5 3 0 $ 4 9 7 , 3 4 0 $ 5 0 0 , 1 5 0 To t a l P r o j e c t s $3 5 6 , 0 6 0 $2 7 6 , 4 6 0 $2 7 6 , 0 4 0 $2 7 1 , 9 1 0 $2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 $ 2 7 6 , 1 9 0 En d i n g C a s h B a l a n c e o f C a p i t a l F a c i l i t i e s F u n d $2 0 7 , 9 4 1 $2 3 5 , 4 8 1 $2 1 3 , 4 4 0 $2 1 5 , 5 3 0 $2 1 8 , 3 4 0 $ 2 2 1 , 1 5 0 $ 2 2 3 , 9 6 0 (1 ) I n t e r e s t e a r n e d e s t i m a t e d a t 2 % p e r y e a r Ex p e n s e s f o r p r o j e c t s d o n e b y d i r e c t b i l l i n g Re p a i r a n d R e p l a c e m e n t $1 0 5 , 0 0 0 $3 6 0 , 0 0 0 $1 6 0 , 0 0 0 $2 0 0 , 0 0 0 $2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 Up g r a d e s $5 1 6 , 1 5 0 $1 , 4 0 0 , 0 0 0 $4 0 0 , 0 0 0 $2 0 0 , 0 0 0 $2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 St u d i e s a n d c o n s u l t i n g $4 2 , 0 0 0 $1 2 , 5 0 0 TO T A L E X P E N S E S O U T S I D E O F F U N D 4 1 4 $6 6 3 , 1 5 0 $1 , 7 7 2 , 5 0 0 $5 6 0 , 0 0 0 $4 0 0 , 0 0 0 $4 0 0 , 0 0 0 $ 4 0 0 , 0 0 0 $ 4 0 0 , 0 0 0 Co n t r i b u t i o n b r e a k d o w n b y a g e n c y 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Ed m o n d s 50 . 7 9 % $ 4 6 8 , 8 4 0 $9 5 0 , 9 8 7 $3 6 0 , 5 8 8 $3 4 0 , 2 7 3 $3 4 2 , 8 1 2 $ 3 4 2 , 8 1 2 $ 3 4 2 , 8 1 2 Mo u n t l a k e T e r r a c e 23 . 1 7 % $ 2 1 3 , 9 3 1 $4 3 3 , 9 3 3 $1 6 4 , 5 3 5 $1 5 5 , 2 6 6 $1 5 6 , 4 2 5 $ 1 5 6 , 4 2 5 $ 1 5 6 , 4 2 5 Ol y m p i c V i e w W a t e r & S e w e r D i s t r i c t 16 . 5 5 % $ 1 5 2 , 7 9 1 $3 0 9 , 9 1 7 $1 1 7 , 5 1 2 $1 1 0 , 8 9 2 $1 1 1 , 7 1 9 $ 1 1 1 , 7 1 9 $ 1 1 1 , 7 1 9 10/30/2009 Pa c k e t Pa g e 98 of 33 9 AM-2571 2.F. Authorization to Surplus Seized Vehicle Edmonds City Council Meeting Date:11/02/2009 Submitted By:Kim Karas Submitted For:Noel Miller Time:Consent Department:Public Works Type:Action Review Committee: Committee Action: Information Subject Title Authorization to surplus seized vehicle. Recommendation from Mayor and Staff It is recommended that authorization be given to Public Works to surplus a vehicle seized by the Edmonds Police Department with James G. Murphy Auction Company. Previous Council Action None. Narrative Public Works has obtained a vehicle by the Edmonds Police Department. The vehicle is a police seizure and Public Works would like to surplus this vehicle in the same manner as it has other non-essential vehicles, by using the James G. Murphy Auction Company. Fiscal Impact Fiscal Year:2009 Revenue:General Fund Expenditure: Fiscal Impact: Attachments No file(s) attached. Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 12:31 PM APRV 2 Mayor Gary Haakenson 10/29/2009 12:33 PM APRV 3 Final Approval Sandy Chase 10/29/2009 01:24 PM APRV Form Started By: Kim Karas  Started On: 10/27/2009 11:06 AM Final Approval Date: 10/29/2009 Packet Page 99 of 339 Packet Page 100 of 339 AM-2575 3. Community Transit Edmonds City Council Meeting Date:11/02/2009 Submitted By:Sandy Chase Time:15 Minutes Department:City Clerk's Office Type:Information Review Committee: Committee Action: Information Subject Title Report from Community Transit on Bus Rapid Transit. Recommendation from Mayor and Staff Information. Previous Council Action N/A Narrative Joyce Eleanor, Chief Executive Officer with Community Transit, will provide a report on Bus Rapid Transit. Fiscal Impact Attachments No file(s) attached. Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 09:31 AM APRV 2 Mayor Gary Haakenson 10/29/2009 10:37 AM APRV 3 Final Approval Sandy Chase 10/29/2009 12:32 PM APRV Form Started By: Sandy Chase  Started On: 10/29/2009 08:57 AM Final Approval Date: 10/29/2009 Packet Page 101 of 339 AM-2577 4. Public Hearing on Fire District 1 Contract, Option 4. Edmonds City Council Meeting Date:11/02/2009 Submitted By:Sandy Chase Time:30 Minutes Department:City Clerk's Office Type:Action Review Committee: Committee Action: Information Subject Title Public hearing on Fire District 1 Contract, Option 4. In addition to contracting for services with Fire District 1, this option includes selling apparatus (engines, aid cars, and equipment), and keeping fire stations, land and transport fees. Recommendation from Mayor and Staff Receive public comment. Previous Council Action At the October 20, 2009 City Council Meeting, the City Council voted 5-2 to further consider two options regarding the Fire District 1 contract offer: Option 1: Do not enter into a contract with Fire District 1. Option 4: Contract for services with Fire District 1; sell apparatus (engines, aid cars, and equipment), and keep fire stations, land and transport fees. At the October 27, 2009 City Council Meeting, the City Council held a public hearing on the Fire District 1 Contract, Option 4. It was the consensus of the City Council to hold an additional public hearing on November 2, 2009. Narrative Attached for your consideration are the following documents: •Attachment 1: Interlocal Agreement for Fire and Emergency Medical Services with Fire District 1 dated 11-02-09. •Attachment 2: Exhibits A through J referenced in the Interlocal Agreement dated 11-02-09. •Attachment 3: Financial Summary of Option 4 and also a Comparison between Options 1 and 4. •Attachment 4: Excerpt from the October 20, 2009 City Council Meeting Minutes regarding the Fire District 1 Contract. •Attachment 5: Excerpt from the October 27, 2009 Draft City Council Meeting Minutes regarding the Fire District 1 Contract. Packet Page 102 of 339 Fiscal Impact Attachments Link: Attachment 1 - Interlocal Agreement with Fire District 1 Dated 11-02-09 Link: Attachment 2 - Exhibits A thru J Referenced in the Interlocal Agreement Dated 11-02-09 Link: Attachment 3 - Financial Summary of Option 4 and also a Comparison Between Options 1 and 4 Link: Attachment 4 - Excerpt from the 10-20-09 City Council Meeting Minutes re Fire District 1 Contract Link: Attachment 5 - Excerpt from the 10-27-09 Draft City Council Meeting Minutes re Fire District 1 Contract Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 10:07 AM APRV 2 Mayor Gary Haakenson 10/29/2009 10:37 AM APRV 3 Final Approval Sandy Chase 10/29/2009 12:32 PM APRV Form Started By: Sandy Chase  Started On: 10/29/2009 09:40 AM Final Approval Date: 10/29/2009 Packet Page 103 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 1 of 21 November 2, 2009 INTERLOCAL AGREEMENT FOR FIRE AND EMERGENCY MEDICAL SERVICES THIS INTERLOCAL AGREEMENT by and between SNOHOMISH COUNTY FIRE PROTECTION DISTRICT NO. 1, a Washington municipal corporation (the “District”) and the CITY OF EDMONDS, a Washington city (the “City”) is for the provision of fire and emergency medical services (EMS). WHEREAS, a consolidated Fire and EMS service, by a single vendor or through a Regional Fire Protection Service Authority (RFA), has recently gained support of most elected officials in Southwest Snohomish County; WHEREAS, the City and District agree that a long-term agreement between the City and the District for fire and emergency medical services is beneficial to the City and District and their stakeholders; and WHEREAS, the City and District have a long-term relationship for providing Mutual and Automatic Aid toward the delivery of fire and emergency medical service; and WHEREAS, the City desires to contract with the District to provide fire and emergency medical services to the City and the District desires to so provide these services; and WHEREAS, the District and the City are authorized, pursuant to Chapter 39.34 of the Revised Code of Washington, to enter into Interlocal Agreements which allow the District and the City to cooperate with each other to provide high quality services to the public in the most efficient manner possible. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the City and District hereto agree as follows: Packet Page 104 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 2 of 21 November 2, 2009 1. SCOPE OF SERVICES 1.1 Services Provided. The District shall provide all services necessary for fire suppression, emergency medical service, hazardous materials response, technical rescue, and disaster response to a service area covering the corporate limits of the City of Edmonds as are provided by the City of Edmonds. In addition, the District shall provide support services including, but not limited to, fire marshal, fire prevention and life safety, public education, public information, and fleet maintenance, payroll and finances, human resources, and legal and risk management pertaining to the operations and delivery of fire department services. 1.2 Training, Education, and Career Development. The District will provide training and education to all firefighter and emergency medical service personnel in accordance with State, County and local requirements. Furthermore, the District will offer professional development and educational and training opportunities for unrepresented and civilian employees. 1.3 City Fire Chief. The District’s Fire Chief shall be designated the City Fire Chief for purposes of statutory provisions, regulations and the Edmonds City Code. 1.4 District Fire Chief Designates Fire Marshal. The District Fire Chief shall designate an individual to serve as City Fire Marshal, and shall assign necessary personnel to support the functions and needs of the Fire Marshal as mutually agreed to and partially funded by the City (See Exhibit A). 2. STANDARDS FOR SERVICES/STAFFING 2.1 Battalion Chief. The City Battalion Chief unit shall be staffed with a minimum of one (1) Battalion Chief twenty-four (24) hours per day, seven (7) days per week. The District agrees to provide Incident Command response for all emergency incidents twenty-four (24) hours per day, seven (7) days per week. 2.2 Fire Station Staffing. Fire Station 16 shall be staffed twenty-four (24) hours per day, seven (7) days per week with a minimum of one (1) fire captain and two (2) firefighter/emergency medical technicians or firefighter/paramedics. Fire Station 17 shall be staffed twenty-four (24) hours per day, seven (7) days per week with a minimum of one (1) fire captain, and two (2) firefighter/emergency medical technicians or firefighter/paramedics. Fire Station 20 shall be staffed twenty-four (24) hours per day, seven (7) days per week with a minimum of one (1) fire captain and two (2) firefighter/emergency medical technicians or firefighter/paramedics. 2.3 Paramedic Unit. The City Medic Unit will be staffed with a minimum of two (2) firefighter/paramedics as currently provided. Packet Page 105 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 3 of 21 November 2, 2009 2.4 Level of Service. The District shall provide the same level of service as currently provided by the City, which is consistent with the City response objectives per the City’s Chapter 35.103 RCW Fire Department Compliance Plan (previously SHB Compliance Plan 1756) approved by the Edmonds City Council on November 28, 2006. If these response objectives are amended to provide an increased level of service, the District will make reasonable efforts to meet them, provided that funding is adequate. 2.5 Annual Reporting. The District agrees to annually report to the City in accordance with the City’s RCW 35.103 Fire Department Compliance Plan. 2.6 Staffing Exceptions. Exceptions to on duty staffing levels may occur in unusual circumstances such as where there is a significant emergency event(s) in the District, the City, or other areas which are under a contract for service or auto/mutual aid agreement with the District. Unusual circumstances and significant emergencies that affect personnel, equipment, infrastructure and/or may include, but are not limited to, natural or man-made disasters, a significant incident, or series of escalating incidents significant to a specific location, multiple locations, and/or with area or region-wide impact. 2.7 Criteria-Based 9-1-1 Dispatch. It is understood and agreed by the City and District that the dispatch of units during emergencies is determined by criteria- based dispatch protocols of the dispatch centers, and automatic and/or mutual aid agreements. Nothing herein shall require the District to respond first within the City as opposed to other areas served by the District. The City and District recognize that responses to emergencies shall be determined by the District based upon dispatch protocols, the District’s operational judgment, and without regard to where the emergencies occur. 2.8 Level of Service Changes. During the term of this Agreement, service level changes may be mandated that are beyond the control of either party. Additionally, either party may desire to change the service level, including but not limited to, those services identified in Section 1 Scope of Services and Section 2 Standards for Services/Staffing. When a service level change is mandated by law, adopted by the Edmonds City Council as the City’s response objectives as required by RCW 35.103, or is mutually agreed to by the parties, the City and the District will renegotiate the contract payment at the request of either party. Provided that before renegotiation, the District must notify the Union, IAFF 1997, of the alleged change requiring a change in the level of service and thereafter negotiate with the Union the impact/affects of such change on the terms and conditions of employment of bargaining unit personnel. 2.9 Response Time Questions. In the event that response times should consistently exceed the current level of City services, the District Fire Chief and City Mayor, or their designees, shall meet and confer to address the cause and potential remedies. In no circumstance will a meet and Packet Page 106 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 4 of 21 November 2, 2009 confer process be prejudicial to the rights of the parties under this agreement, or upon the Union, IAFF 1997, to bargain any and all impacts/effects relating to any remedy incident to the increased response time. 3. USE OF CITY FIRE STATIONS 3.1 Use of City Fire Stations. The City shall retain ownership of existing City fire stations. The City shall provide three City fire stations or replacement fire stations for use by the District during the term of this Agreement and as described in Exhibit B. In the event of a conflict between the provisions of the Agreement and Exhibit B, the provisions of Exhibit B shall control with respect to fire stations and fixtures contained therein. 3.2 Fire Station Furnishings. The District shall make a one-time, lump sum purchase of fire station furnishings that are not built-in or fixed, and consumable and disposable supplies within 30 days after the Commencement Date of this Agreement. The District shall accept ownership of furnishings that are not built-in or fixed in “as is” condition but only if the individual furnishing or ensemble are in a condition acceptable to the District. 3.3 Purchase Price. The purchase price for furnishings that are not built-in or fixed was determined by applying a 15-year depreciation schedule to the estimated purchase prices of individual furnishings or ensembles. The purchase price for the estimated consumable and disposable supplies that will be in the fire stations on the Commencement Date of this Agreement is based on the acquisition price. The purchase price for furnishings that are not built-in or fixed with appropriate depreciation applied, and the price of consumable and disposable supplies is identified in Exhibit J. 4. ANNUAL CONTRACT AND TRANSPORT FEES PAYMENT TERMS 4.1 Annual Contract Payment. The City shall annually pay the District a sum referred to as the Contract Payment for the services provided herein. The amount of the Contract Payment shall be determined according to Exhibit C. The Contract Payment shall be paid in equal quarterly installments by January 15, April 15, July 15 and September 15. Failure to pay quarterly installments in a timely manner shall be considered a material breach as defined in the Definitions section of this Agreement. 4.2 Contract Payment Adjustment. The Contract Payment shall be adjusted each year no later than September 1. 4.3 Annual Percent Increase Based on Labor Costs. The District shall submit to the City an annual revision to Exhibit C of this Agreement, which shall identify the Contract Payment for the ensuing year(s). The cost of City Station Personnel identified in Exhibit C shall be adjusted as changes occur by the percentage Packet Page 107 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 5 of 21 November 2, 2009 increase in labor costs resulting from the negotiated labor agreement between the District and IAFF Local 1997; provided that the personnel cost shall increase from one labor agreement to the next no more than the greater of (i) the median increase in compensation of comparable fire agencies, (ii) the increase in the Consumer Price Index as measured by the CPI-W Seattle-Tacoma-Bremerton metropolitan area for the 12-month period ending June 30, or (iii) the percentage increase in compensation awarded by an interest arbitrator. The phrase “comparable fire agencies” shall refer to a list of comparables agreed upon by the Employer and Union through the collective bargaining process or the comparables accepted by an interest arbitrator in an interest arbitration proceeding. 4.4 Adjustment Date Not Met. If the labor agreement between the District and IAFF Local 1997 has not been finalized by December 31 of the year prior to the upcoming contract for service year, the District Station Personnel costs and the District Indirect Costs will be adjusted upon execution of the labor agreement but will be retroactive to January 1 and paid by the City within 30 days of execution of the labor agreement. 4.5 Annual Indirect Operating Cost Adjustments. The District shall adjust the Contract Payment costs consisting of Indirect Operating Costs determined by the following:  Overhead which shall be 10 percent of the cost of the City Station Personnel cost;  Station equipment/maintenance/operation, which shall be 10 percent of the City Station Personnel cost;  Fire Marshal allocation at 75 percent of wage and benefit cost of the position, and Fire Inspector at 100 percent of wage and benefit cost of the position (See Exhibit A); and  Apparatus replacement costs based upon the District Apparatus Replacement Schedule – City Rolling Stock designated as Exhibit D. The District Indirect Costs identified in Exhibit C shall then be adjusted based upon the specified percentage of the increased cost of City Station Personnel. The total of the City Station Personnel cost and the Indirect Costs shall be the Contract Payment for the ensuing year. 4.6 Annexation. The City’s Urban Growth Area does contain property within the boundaries of the District; however, this provision shall not apply to the annexation of “islands” as referenced in RCW 35.13.182. Should the City seek to annex portions of the District, the District will not oppose the annexation. In the event the City annexes portions of the District, the Contract Payment shall be increased and shall be calculated by applying the then current District levy rate and emergency medical services levy rate to the annexed property. The increased amount shall be added to the Contract Payment as a base for calculations in future years. Packet Page 108 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 6 of 21 November 2, 2009 4.7 Significant Change in Cost of Providing Services. In the event that there is a material and significant increase or decrease in the costs of providing services under this Agreement or an increase in such costs as a result of a legislative or policy decision that is exempt from the dispute resolution provisions of Sections 18.1 and 18.2, then at the request of either party, the City and District shall renegotiate this Agreement and the Contract Payment to fully compensate the District for actual costs incurred according to the methodology in Exhibit C. In the event that the City and District are unable to successfully renegotiate this Agreement through good faith negotiations, then the Dispute Resolution provision of this Agreement shall apply. 4.8 EMS Transport Fees. The District understands and acknowledges that the City presently charges fees for basic life support and advanced life support transports occurring within the City. As the EMS service provider, the District shall receive and collect all Transport Fees in accordance with District policy for transports that originate within the City limits. The District shall remit these amounts, less an administration fee not to exceed the actual cost of collection, to the City according to the quarterly schedule in Section 4.1. The District shall be responsible for, and agrees to prepare and provide in a timely fashion, all necessary or requested documentation and/or reports to the City. 4.9 Creating Unfunded Mandates. The City shall not create any unfunded mandates for increased service by the District without fully compensating the District for actual costs incurred. 5. CITY EMPLOYEES 5.1 All City Employees Become District Employees. The District shall become the employer of all City Fire Department employees, including administrative and unrepresented uniformed, IAFF members, SEIU members, and civilian employees of the City Fire Department on the Commencement Date of this Agreement between the City and the District. The City and District recognize that during the term of the Interlocal Agreement, the uniformed City Fire Department employees will be integrated into Local 1997 of the IAFF. Labor-represented employees will continue in their current positions and job assignments as recognized by the District, or as agreed through collective bargaining prior to the implementation of this Agreement. Administrative uniformed employees may be reassigned to job positions that meet the needs of consolidating the two organizations. Any civilian City Fire Department employee who is reassigned to a new position shall be entitled to wages and benefits consistent with, or greater than, the current wages and benefits provided by the City for such employee’s former position. City personnel shall receive the District’s compensation levels and benefits as of the Commencement Date of this Agreement. Packet Page 109 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 7 of 21 November 2, 2009 5.2 Seniority and Rank. Any IAFF member of the City Fire Department shall assume employment with the District with complete seniority and rank intact. No additional probationary periods or testing shall be required of any current IAFF member under the Employees of Merged or Contracted Organization’s article of the Local 1997 Collective Labor Agreement. For purposes of seniority, the “hire date” of a City Fire Department employee will be the earliest such employee’s hire date(s) with Fire District 1, Medic 7, or the City of Edmonds. 5.3 Transfer of Sick and Vacation Leave. Sick and vacation leave of City employees shall be transferred and maintained as attached in Exhibit E. The City shall pay to the District the current value of accrued vacation leave banks as of the date of the transfer. The City shall also pay the cash-out value of City sick leave banks in accordance with applicable Union contract or City policy. “Cash-out value” shall be based on termination by layoff due to lack of work by the City as of the date of the transfer. The District and City may agree to credit this obligation against monies owed by the District under this Agreement. These payments are intended to close out the City’s obligations with respect to transferred, accrued leave banks and the provisions of 5.9 shall not apply to unanticipated costs or increases associated with the transferred leave banks such as, but not limited to, increases attributable to changes in statutory or case law relating to the payment of such banks, their impact on overtime requirements or changes in pension law, PROVIDED, HOWEVER, that if a transferred employee retires within two (2) years of the date of the transfer and the Washington State Department of Retirement Systems (DRS) treats any portion of the leave bank payouts as excess compensation, the City shall be liable for its proportionate share of such excess compensation cost as determined by DRS. “Proportionate share” shall be determined based on the last wage paid by the City and the leave payout cap in effect as of the date of the transfer and the excess compensation assessment attributable thereto. 5.4 Layoff Language. For the provisions of layoffs or reduction in force, there shall be three established Seniority Lists attached as Exhibit F.  Blended Seniority List consisting of the former members of IAFF Local 1828 (Edmonds Firefighters) and the members of IAFF Local 1997 (Snohomish County Fire District 1 Firefighters).  Non-Blended Seniority List of IAFF local 1997 (District Firefighters) prior to the Commencement Date of the Interlocal Agreement between the District and the City.  Non-Blended Seniority list of IAFF Local 1828 (Edmonds Firefighters) prior to the Interlocal Agreement between the District and the City. 5.4.1 Layoff Within First 60 Months of Contract. If a reduction in force becomes necessary within the first 60 months of this Agreement, the reductions in force shall be initiated utilizing the Blended Seniority List from the most senior to the least senior giving each member the first right of refusal. In the event that the said reduction in force is not accomplished through the Blended Seniority List, Packet Page 110 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 8 of 21 November 2, 2009 the reduction in force shall be incurred upon the least senior members of the jurisdiction causing the reduction in force. The reduction will be based on the Seniority Lists established prior to the Interlocal Agreement between the District and the City. 5.4.2 New Employees. Employees hired after the date of this Interlocal Agreement will be placed on the bottom of the Blended List and will be first subject to layoff. 5.5 Promotional Language and Probationary Period. The parties agree that two of three Company Officer promotions required to convert the three-platoon City work schedule to the District four-platoon work schedule will be made from a promotional list established by the Edmonds Civil Service Commission and consist solely of eligible pre-Commencement Date City employees. 5.6 Company Officer Promotion Process. The parties agree that the City Company Officer promotion process shall occur prior to the Commencement Date of the Agreement. 5.7 Probation Process for Newly Promoted Company Officers. The parties agree that newly-promoted City Company Officers transferring employment to the District on the Commencement Date shall serve the probationary period of the IAFF 1997 collective labor agreement and District policy, procedures, and performance standards for Company Officers. 5.8 Impact of Agreement. Each party has undertaken to collectively bargain the impact of this Agreement upon the respective labor unions which represent each party’s employees. The City and District further acknowledge that the integration of City employees into the District’s organizational structure has been in conjunction with the respective labor unions which represent each party’s employees, and that the City and District will have reached agreement with existing labor unions, and with each other, that the seniority rights of City Personnel will remain intact and will transfer to their employment with the District. 5.9 Former City Employees. The City shall indemnify, defend, and hold the District harmless from any and all demands, claims, or actions by former City personnel, which arise out of, or relate to, the time prior to the date that such City personnel became employees of the District; provided, however, that the indemnification shall not apply to any claims arising as a result of the District’s actions under the Interlocal Agreement. 6. ROLLING STOCK (APPARATUS AND VEHICLES) 6.1 Purchase Rolling Stock. The District shall purchase the City Fire Department’s rolling stock (apparatus and vehicles). The District shall accept title and ownership of such rolling stock in “as is” condition but only if each individual unit is in a condition reasonably acceptable to the District. Packet Page 111 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 9 of 21 November 2, 2009 6.2 Transfer of Title. The City and District shall cooperate and execute such documents which are necessary to accomplish the transfer of title. 6.3 Rolling Stock Lump Sum Purchase. The District shall make a one-time, lump sum purchase of City rolling stock within 30 days after the Commencement Date of this Agreement, specifically for the ladder (1), engines (3), medic unit (1), aid units (4), utility (1), the 1938 Ford fire engine (1), and six vehicles. 6.4 Purchase Price. The purchase price of each piece of rolling stock shall be the retail price determined by Fire Trucks Plus, Inc.; or by the Kelly Blue Book; the acquisition cost of the 1938 Ford Fire Engine; plus the delivered, set-up and lettered cost of two 2009 Ford E-450s Aid Units manufactured by Braun and identified in Exhibit G. 6.5 Rolling Stock Records. The sale of rolling stock includes all service and maintenance, records, and shop manuals for each purchased unit. 6.6 District Apparatus Replacement Schedule. The District has provided current information regarding existing and proposed Apparatus Replacement Schedule attached in Exhibit D. The District, in its sole discretion, may elect to purchase new rolling stock or otherwise assign District rolling stock for use within the City. 6.7 Public Safety Boat. The Public Safety Boat, acquired with a Department of Homeland Security grant as a county-wide asset and known as Marine 16, remains the property of the City. Use by the District of Marine 16 for training and emergencies as a county-wide asset is described in Exhibit H. 7. EQUIPMENT 7.1 Purchase Equipment. The District shall purchase City Fire Department equipment identified in Exhibit I. Equipment is divided into two categories – (1) that on the Fire Department Attractive Asset List, and (2) that equipment on- board rolling stock. There is no duplication between the two lists. The District shall accept ownership of equipment in “as-is” condition but only if each individual piece of equipment or ensemble is in reasonably acceptable condition as determined solely by the District. 7.2 Equipment Lump Sum Purchase. The District shall make a one-time, lump sum purchase of City equipment within 30 days after the Commencement Date of this Agreement. 7.3 Purchase Price. (1) The purchase price for items on the Asset List was determined by applying a straight-line depreciation to the purchase price, invoice, and/or estimated present value for each individual item. Straight-line depreciation is calculated by taking the value of the asset and dividing it by the expected life Packet Page 112 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 10 of 21 November 2, 2009 span, then multiplying the expected life span by the age of the asset (value / years = yearly depreciation x age = depreciation amount). (2) The price for equipment on-board rolling stock was determined by applying five years of depreciation based on a ten-year average replacement schedule to the purchase price of individual items using fire service reference materials including Galls, Life Assist (EMS hard and soft gear), PMI (technical rescue equipment), and Heiman Fire Equipment. This equates to 50 percent depreciation to all equipment. The purchase price and depreciation of each piece of equipment or ensemble is identified in Exhibit I. 7.4 Equipment Records and Warranties. The sale of equipment includes all service and maintenance records, and shop manuals. Wherever permitted under the terms of a contract to purchase a vehicle or equipment transferred to the District or a warranty relating thereto, the City hereby transfers and assigns its interest under such warranties to the District. In the event that only the City may exercise the warranty, the City will cooperate with and use its best efforts to enforce any warranty regarding equipment provided to the District. 8. OVERSIGHT AND REPORTING 8.1 Agreement Administrators. The District Fire Chief and the City Mayor and/or their designees, shall act as administrators of this Agreement for purposes of RCW 39.34.030. During the term of this Agreement, the District Fire Chief shall provide the Mayor with quarterly reports concerning the provision of services under this Agreement. The format and topics of the reports shall be agreed upon by the District Fire Chief and the Mayor. Additionally, two District Board Commissioner members and two City Council members, along with the District Fire Chief and the Mayor, shall meet at least once per calendar year, on or before April 1, for the purpose of communicating about issues related to this Agreement. The District Fire Chief and the Mayor shall present a joint annual report to the Edmonds City Council prior to July 31. 8.2 Joint Annual Meeting. In addition to the meeting(s) referred to in Section 8.1 above, the Edmonds City Council and Board of Fire District #1 Commissioners shall meet prior to April 1 of each calendar year at a properly noticed place and time to discuss items of mutual interest related to this Agreement. 8.3 Representation on Intergovernmental Boards. The District shall represent the City on intergovernmental boards or on matters involving the provision of services under this Agreement as reasonably requested by the Mayor. The City reserves the right to represent itself in any matter in which the interests of the City and the District are not mutual or whenever any matter relates to the appropriation of or expenditure of City funds beyond the terms of this Agreement. Packet Page 113 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 11 of 21 November 2, 2009 9. EXISTING AGREEMENTS 9.1 ESCA, SNOCOM and SERS. The City currently has contractual relationships with other entities or agencies including the Emergency Services Coordinating Agency (ESCA) for all City; Snohomish County Communications Center (SNOCOM) for Fire, Police, and Public Works; and Snohomish County Emergency Radio System Agency (SERS) for Fire and Police. The City shall maintain its representation and financial obligations with those entities or agencies and will act to represent itself and retain authority to negotiate on its behalf. At the discretion of the City, the District may provide representation on behalf of the City on various committees, boards and/or commissions as requested, as appropriate, and/or as agreed to by mutual agreement of the parties. 9.2 Mutual and Automatic Aid. The City and District currently have individual responsibilities and contractual obligations under their respective agreements with other fire agencies. The District shall assume the City’s contractual responsibility and obligations for the provision of mutual and automatic aid. At such time as these agreements are renegotiated and re-executed, the District will represent the City’s interests and shall be signatory to the agreements on behalf of the City. 9.3 Full Information as Basis for Relationship. The City and District agree to coordinate their individual relationships with other entities and agencies so that the services under this Agreement will be provided in an efficient and cost effective manner. The City and District agree to keep each other fully informed and advised as to any changes in their respective relationships with those entities or agencies, whether or not those changes impact the City and/or the District obligations under this Agreement. Notice of any change in the relationship or obligations shall be provided to the other party in writing in a timely manner that allows a reasonable opportunity to discuss proposed changes in relationships or obligations. 9.4 Dispute Resolution. In the event that any dispute between the City and District cannot be resolved by good faith negotiations between the City and District, then the dispute resolution provision of this Agreement shall apply. 10. TERM OF AGREEMENT 10.1 20-Year Agreement. The effective date of this Agreement shall be upon its execution by the City and District. The Commencement Date of this Agreement shall be January 1, 2010. This Agreement shall continue in effect for a period of twenty (20) years from the Commencement Date, until December 31, 2030, unless terminated earlier as provided herein. After the initial twenty (20) year term, this Agreement shall automatically renew under the same terms and Packet Page 114 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 12 of 21 November 2, 2009 conditions for successive, rolling five (5) year periods unless terminated as provided herein. 10.2 Material Breach and Wind-Up Period. In the event of a Material Breach of this Agreement, the City and District shall, unless the City and District mutually agree otherwise, continue to perform their respective obligations under this Agreement for a minimum of twelve (12) months after notice of the Material Breach (the “Wind-Up Period”); provided, however, that the Wind-Up Period shall be 90 (ninety) days if the Material Breach involves the City’s failure to make the Contract Payment; provided further, that during the Wind-Up Period, the City and District shall coordinate their efforts to prepare for the transition to other methods of providing fire and EMS service to the City. The City will be responsible for all payments required herein until the conclusion of the Wind-Up Period. 11. TERMINATION AND RETURN OF ASSETS 11.1 First Five Years. The City and District acknowledge that in entering into this Agreement, significant financial and personnel resources have been expended. Therefore, neither the City nor the District may terminate this Agreement within the first five (5) years following the Commencement Date except for a Material Breach of this Agreement which the breaching party fails to cure within a reasonable amount of time after receiving written notice from the non-breaching party. The City’s and the District’s intent by this section is to provide both service stability to citizens and job security to employees. 11.2 Years Six Through Twenty. In addition to terminating this Agreement for a Material Breach, either party may terminate this Agreement after the first five (5) years from the Commencement Date by providing the other party with two (2) years written notice of its intent to terminate during any period of extension. Notice under this provision may only be given once five years have elapsed after the Commencement Date. 11.3 Termination Costs. The costs associated with terminating this Agreement shall be borne by the party who elects to terminate, or in the event of a Material Breach, by the breaching party, provided that in the following circumstances, the costs of termination shall be apportioned. 11.4 Termination Due to Change in Law or by Mutual Agreement. In the event that this Agreement is terminated due to a change in law, each party shall bear its own costs associated with the termination; or, in the event that the City and District mutually agree to terminate this Agreement, each party shall bear its own costs associated with the termination. 11.5 Regional Fire Protection Service Authority. In the event that the District, along with one or more fire protection jurisdictions, elects to create a Regional Fire Protection Service Authority Planning Committee (“RFA Planning Committee”) as Packet Page 115 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 13 of 21 November 2, 2009 provided in RCW 52.26.030, the District agrees to notify the City of its intent and, subject to approval of the other participating jurisdictions, to afford the City an opportunity to be a participant on the RFA Planning Committee. Declining the opportunity to participate in the RFA Planning Committee shall not be construed as a material breach on the part of the City as defined in the Definitions section of this Agreement. In the even that a Regional Fire Protection Service Authority (RFA) or another legally recognized means of providing fire and emergency medical services is created, inclusive of the City and District, this Interlocal Agreement will be terminated on the effective date of such Agreement, and neither the City nor the District shall be considered to have committed a material breach as defined in the Definitions section of this Agreement. 11.6 Duty to Mitigate Costs. The City and District have an affirmative duty to mitigate their respective costs of termination, irrespective of the party who elects to terminate this Agreement and irrespective of the party who must bear the costs of termination. 11.7 Return of Assets to the City. Regardless of the reason for termination, the City and District agree that like assets purchased by and transferred to the District as part of this Agreement shall be returned to the City as described below. This provision shall not apply to the formation of a RFA in which both the City and the District are participants. 11.7.1 Purchase Back Rolling Stock. All rolling stock sold under this agreement, or equivalent apparatus and vehicles in use by the District at the time of termination shall be purchased back using the same process, methods, and conditions under which the original purchase was made unless otherwise agreed upon by the parties. 11.7.2 Purchase Back Equipment. All equipment sold under this agreement, or equivalent equipment in use by the District at the time of termination shall be purchase back using the same process, methods, and conditions under which the original purchase was made unless otherwise agreed upon by the parties. 11.7.3 Rehire Personnel. In the event of termination within the first five (5) years of this Agreement by either party for any reason, the City shall rehire the personnel laid off by the District, up to fifty-four (54) personnel transferred with no loss of compensation and accumulated benefits. Accrued vacation and sick leave banks shall be transferred to the City and the District shall pay to the City the current cash value of the leave banks as determined under the same procedures set forth in Section 5.3 of this Agreement. 11.7.4 Former District Employees. The District shall indemnify, defend and hold harmless from any and all demands, claims, or actions by rehired District personnel, which arises out of or relate to the time that such personnel were employees of the District, PROVIDED HOWEVER, that the indemnification shall Packet Page 116 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 14 of 21 November 2, 2009 not apply to any claims arising as a result of the City’s actions during the term of the Agreement. 12. DECLINE TO MERGE 12.1 City Declines to Merge. In the event that the District enters into an agreement with any other fire district that is substantially equivalent to a merger, the City may decline to be included, and elect to end the Agreement without prejudice or penalty. The terms and conditions of that termination include written notice provided in accordance with the provisions of Section 19.1 to the District of the intent to end the Agreement not more than 90 days after receiving written notification provided in accordance with the provisions of Section 19.1 from the District that the District intends to merge with another entity. 12.1.1 Not a Material Breach. The City decision to not merge does not constitute a Material Breach of the Agreement and none of the penalties associated with a Material Breach shall apply to the City. 12.1.2 12-Month Notice. The Agreement will end not more than 12 months after the City officially notifies the District that it declines to be merged, unless otherwise agreed to by the parties, and the costs of termination shall be split evenly between the parties. 12.1.3 City Exit from Agreement. If the City elects to terminate the Agreement because of an impending merger between the District and one or more other jurisdiction, the City exit will be under the terms and conditions described in Section 11.7. 13. CITY FIRE DONATION FUND 13.1 Disposition of Fire Donation Funds. Effective on the Commencement Date of this Agreement, the amount of funds in the Fire Department Donation Fund on December 31, 2009 shall be forwarded to the District 1 to acquire fire and life safety tools and equipment not otherwise affordable through the regular budget process. Tools and equipment subsequently acquired with Donation Fund monies by the District will be assigned to Edmonds Fire Stations and apparatus but shall be used without restriction throughout the District service area. 14. TOWN OF WOODWAY 14.1 No Impact on this Agreement. The provision of fire and emergency medical services to the Town of Woodway by the District has no organizational or financial impact on the Agreement between the City and the District or the terms and conditions of said Agreement. Packet Page 117 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 15 of 21 November 2, 2009 15. CITY CIVIL SERVICE COMMISSION 15.1 Civil Service Commission Notification. The City acknowledges that the City of Edmonds Civil Service Commission has been officially advised of the terms and conditions of this Agreement. 16. CITY AND DISTRICT ARE INDEPENDENT MUNICIPAL GOVERNMENTS 16.1 Independent Governments. The City and District recognize and agree that the City and District are independent governments. Except for the specific terms herein, nothing herein shall be construed to limit the discretion of the governing bodies of each party. Specifically and without limiting the foregoing, the District shall have the sole discretion and the obligation to determine the exact method by which the services are provided within the District and within the City unless otherwise stipulated within this Agreement. 16.2 Resource Assignments. The District shall assign the resources available to it without regard to internal political boundaries, but rather based upon the operational judgment of the District as exercised within the limitations and obligations of Sections 2.4 through 2.8. 16.3 Debts and Obligations. Neither the City nor District, except as expressly set forth herein or as required by law, shall be liable for any debts or obligations of the other. 17. INSURANCE 17.1 Maintenance of Insurance. For the duration of this Agreement, each Party shall maintain insurance as follows: Each party shall maintain its own insurance policy insuring damage to its own fire stations, real and personal property and equipment if any, and “policy” shall be understood to include insurance pooling arrangements or compacts such as the Washington Cities Insurance Authority (WCIA). The City shall maintain an insurance policy insuring against liability for accidents occurring on City owned property. Such insurance policy shall be in an amount not less than one million dollars ($1,000,000.00) per occurrence with a deductible of not more than $5,000. The District shall maintain an insurance policy insuring against liability arising out of work or operations performed by the District under this Agreement in an amount not less than one million dollars ($1,000,000.00) per occurrence with a deductible of not more than $5,000. The phrases “work or operations” and “maintenance and operations” shall include the services identified in Section 1. Scope of Services, the services of the Fire Marshal and the District’s Fire Chief, acting in the capacity of City Fire Chief and any obligation covered by Exhibit B, Section 9. 17.2 Claims of Former City Employees. The City has provided proof of coverage that it has maintained insurance against claims by former City Personnel for incidents Packet Page 118 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 16 of 21 November 2, 2009 and occurrences which may have occurred prior to the Commencement Date of the Interlocal Agreement, including but not limited to, injuries, employment claims, labor grievances, and other work-related claims. Such insurance was at all times in an amount not less than one million dollars ($1,000,000.00) per occurrence with a deductible of not more than $5,000. The City will hold harmless the District and its insurance provider for any such claims, lawsuits or accusations that occurred prior to the Commencement Date of the Interlocal Agreement, 17.3 Claims of Former District Employees. The District represents and warrants that it has maintained insurance against claims by District employees for incidents and occurrences which may have occurred during the time period prior to the Commencement Date of the Agreement, including but not limited to injuries, employment claims, labor grievances, and other work-related claims. Such insurance was at all times in an amount not less than one million dollars ($1,000,000.00) per occurrence with a deductible of not more than $5,000. 17.4 Hold Harmless. To the extent each party’s insurance coverage is not voided, each party agrees to defend and hold harmless the other party, its officers, officials, employees and volunteers from any and all claims, costs, including reasonable attorneys’ and expert witness fees, losses and judgments arising out of the negligent and intentional acts or omissions of such party’s officers, officials, employees and volunteers in connection with the performance of this Agreement. The provisions of this section shall survive the expiration or termination of this Agreement. 17.5 Release from Claims. Except as specifically provided in this Agreement, and except in the event of breach of this Agreement, the District and the City do hereby forever release each other from any claims, demands, damages or causes of action related to damage to equipment or property owned by the City or District or assumed under this Agreement. It is the intent of the City and District to cover this risk with the insurance noted above. 18. DISPUTE RESOLUTION 18.1 Mediation. It is the intent of the City and District to resolve all disputes between them without litigation. Excluded from mediation are issues related to the legislative authority of the Edmonds City Council to make budget and appropriation decisions, decisions to contract, or establish levels of service under Section 2.4 of this Agreement and Chapter 35.103 RCW. Policy decisions of the City Council shall not be subject to review by a mediator; however, this shall not abridge the right of the District to pursue an increase in the Annual Contract Payment as a result of such decision. The City and District shall mutually agree upon a mediator. Any expenses incidental to mediation, including the mediator’s fee, shall be borne equally by the City and District. If the City and District cannot agree upon a mediator, the City and District shall submit the matter to the Packet Page 119 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 17 of 21 November 2, 2009 Judicial Arbitration and Mediation Service (JAMS) and request that a mediator be appointed. This requirement to mediate the dispute may only be waived by mutual written agreement before a party may proceed to litigation as provided within this agreement. 18.2 Binding Arbitration. If the City and District are unsuccessful in renegotiating the Contract Payment after having completed mediation, the City and District shall submit the matter to binding arbitration with the foregoing arbitration service. Excluded from binding arbitration are issues related to the legislative authority of the Edmonds City Council to make budget and appropriation decisions, decisions to contract, or establish levels of service under Section 2.4 of this Agreement and Chapter 35.103 RCW. Policy decisions of the City Council shall not be subject to review by an arbitrator; however, this shall not abridge the right of the District to pursue an increase in the Annual Contract Payment as a result of such decision. The arbitration shall be conducted according to the selected arbitration service’s Streamlined Arbitration Rules and Procedures. At this arbitration, the arbitrator shall, as nearly as possible, apply the analysis used in this agreement and supporting Exhibits to adjust the Contract Payment. The arbitrator may deviate from such analysis and use principles of fairness and equity, but should do so sparingly. Unless the City and District mutually consent, the results of any binding arbitration session shall not be deemed to be precedent for any subsequent mediations or arbitrations. 18.3 Prevailing Party. In the event either party herein finds it necessary to bring an action against the other party to enforce any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Agreement by reason of any breach or default hereunder or there under, the party prevailing in any such action or proceeding shall be paid all costs and attorneys’ fees incurred by the other party, and in the event any judgment is secured by such prevailing party, all such costs and attorneys’ fees of collection shall be included in any such judgment. Jurisdiction and venue for this Agreement lies exclusively in Snohomish County, Washington. 19. MISCELLANEOUS PROVISIONS 19.1 Noticing Procedures. All notices, demands, requests, consents and approvals which may, or are required to be given by any party to any other party hereunder, shall be in writing and shall be deemed to have been duly given if delivered personally, sent by facsimile, sent by nationally recognized overnight delivery service, or if mailed or deposited in the United States mail, sent by registered or certified mail, return receipt requested and postage prepaid to: District Secretary: City Clerk: Snohomish County Fire Protection District No. 1 City of Edmonds 12425 Meridian Avenue 121 5th Avenue North Packet Page 120 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 18 of 21 November 2, 2009 Everett, WA 98208 Edmonds, WA 98020 Or, to such other address as the foregoing City and District hereto may from time-to-time designate in writing and deliver in a like manner. All notices shall be deemed complete upon actual receipt or refusal to accept delivery. Facsimile transmission of any signed original document and retransmission of any signed facsimile transmission shall be the same as delivery of an original document. 19.2 Other Cooperative Agreements. Nothing in this Agreement shall preclude the City and the District from entering into contracts for service in support of this Agreement. 19.3 Public Duty Doctrine. This Agreement shall not be construed to provide any benefits to any third parties. Specifically, and without limiting the foregoing, this Agreement shall not create or be construed as creating an exception to the Public Duty Doctrine. The City and District shall cooperate in good faith and execute such documents as necessary to effectuate the purposes and intent of this Agreement. 19.4 Entire Agreement. This entire agreement between the City and District hereto is contained in this Agreement and exhibits hereto; and this Agreement supersedes all of their previous understandings and agreements, written and oral, with respect to this transaction. This Agreement may be amended only by written instrument executed by the City and District subsequent to the date hereof. Dated this _____ day of ____________, 2009 . SNOHOMISH COUNTY FIRE PROTECTION DISTRICT NO. 1 By:_____________________________ By:____________________________ Commissioner Commissioner By:_____________________________ By:____________________________ Commissioner Commissioner By:____________________________ Commissioner Attest:__________________________ District Secretary Approved as to form: By:____________________________ Fire District Attorney Packet Page 121 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 19 of 21 November 2, 2009 CITY OF EDMONDS By:_____________________________ Attest:_______________________ City Mayor City Clerk Approved as to form: By:_____________________________ City Attorney Packet Page 122 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 20 of 21 November 2, 2009 Definitions The following definitions shall apply throughout this Agreement. a. City: City of Edmonds. b. City Fire Chief: The Fire Chief of the City of Edmonds c. City Fire Department: The Edmonds Fire Department. d. City Fire Stations: Currently, Fire Station 16, Fire Station 17, and Fire Station 20. e. Commencement Date: The date at which the performance and obligations of the City and District as contained herein begin. f. City Personnel: The employees of the City of Edmonds Fire Department as of the Commencement Date who are transferring employment to the District. g. Contract Payment: The annual amount that the City will pay to the District pursuant to this Agreement. h. District: Snohomish County Fire Protection District No. 1. i. Effective Date: The date this Agreement is executed by the City and District. j. District Fire Chief: The Fire Chief of Snohomish County Fire Protection District No. 1. k. Firefighter/EMS Personnel: Full-time, compensated employees, firefighters, emergency medical technicians, or paramedics l. Grid Cards: The electronic file within the Computer Aided Dispatch (CAD) System, which is used to determine fire station response order for Fire District 1. m. Insurance: The term “insurance” as used in this agreement means either valid insurance offered and sold by a commercial insurance company or carrier approved to do business in the State of Washington by the Washington State Insurance Commissioner or valid self-insurance through a self-insurance pooling organization approved for operation in the State of Washington by the Washington State Risk Manager or any combination of valid commercial insurance and self-insurance pooling if both are approved for sale and/or operation in the State of Washington. Packet Page 123 of 339 Interlocal Agreement for Fire and Emergency Medical Service Operations Page 21 of 21 November 2, 2009 n. Material Breach: A Material Breach means: the District’s failure to provide minimum staffing levels as described within this Agreement; the City’s failure to timely pay the Contract Payment as described within this Agreement, or the City’s or District’s failure to comply within this Agreement concerning the City’s fire stations, equipment and/or apparatus. o. Wind-Up Period: The 12 months immediately following formal notification of a Material Breach by either party except as defined in Section 10.2. Packet Page 124 of 339 Packet Page 125 of 339 Packet Page 126 of 339 Packet Page 127 of 339 Packet Page 128 of 339 Packet Page 129 of 339 Packet Page 130 of 339 Packet Page 131 of 339 Packet Page 132 of 339 Packet Page 133 of 339 Packet Page 134 of 339 Packet Page 135 of 339 Packet Page 136 of 339 Packet Page 137 of 339 Packet Page 138 of 339 Packet Page 139 of 339 Packet Page 140 of 339 Packet Page 141 of 339 Packet Page 142 of 339 Packet Page 143 of 339 Packet Page 144 of 339 Packet Page 145 of 339 Packet Page 146 of 339 Packet Page 147 of 339 Packet Page 148 of 339 Packet Page 149 of 339 Packet Page 150 of 339 Packet Page 151 of 339 Packet Page 152 of 339 Packet Page 153 of 339 Packet Page 154 of 339 Packet Page 155 of 339 Packet Page 156 of 339 Packet Page 157 of 339 Packet Page 158 of 339 Packet Page 159 of 339 Packet Page 160 of 339 Packet Page 161 of 339 Packet Page 162 of 339 Packet Page 163 of 339 Packet Page 164 of 339 Packet Page 165 of 339 Packet Page 166 of 339 Packet Page 167 of 339 Packet Page 168 of 339 Packet Page 169 of 339 Packet Page 170 of 339 Packet Page 171 of 339 Packet Page 172 of 339 Packet Page 173 of 339 Packet Page 174 of 339 Packet Page 175 of 339 Packet Page 176 of 339 Packet Page 177 of 339 Packet Page 178 of 339 Packet Page 179 of 339 Packet Page 180 of 339 Packet Page 181 of 339 Packet Page 182 of 339 Packet Page 183 of 339 Packet Page 184 of 339 Packet Page 185 of 339 Packet Page 186 of 339 Packet Page 187 of 339 Packet Page 188 of 339 Packet Page 189 of 339 Packet Page 190 of 339 Packet Page 191 of 339 Packet Page 192 of 339 Packet Page 193 of 339 Packet Page 194 of 339 EXCERPT FROM THE OCTOBER 20, 2009 CITY COUNCIL MEETING MINUTES 5. PUBLIC HEARING ON THE FIRE DISTRICT 1 CONTRACT. THE CITY COUNCIL WILL CONSIDER THE FOLLOWING SCENARIOS AND WILL SELECT A PREFERENCE: (1) WITHOUT FIRE DISTRICT 1 CONTRACT (2) WITH FIRE DISTRICT 1 CONTRACT (3) WITH FIRE DISTRICT 1 CONTRACT (REVENUE REMOVED) (4) WITH FIRE DISTRICT 1 CONTRACT (SELL APPARATUS; KEEP STATIONS, LAND, AND TRANSPORT FEES) (5) WITH FIRE DISTRICT 1 CONTRACT (SELL APPARATUS-REVENUE REMOVED; KEEP STATIONS, LAND, TRANSPORT FEES) (6) WITH FIRE DISTRICT 1 CONTRACT (KEEP STATIONS, LAND, APPARATUS, AND TRANSPORT FEES) Mayor Haakenson apologized the scenarios were not available on Wednesday on the City’s website as promised but were made available via the Council packet on Friday. Councilmember Wambolt referred to a question he sent to Finance Director Lorenzo Hines regarding the revision made to expenses and asked Mr. Hines to explain the change. Mr. Hines advised an additional $246,000 was added to the original expenses in Option 1. The change was the result of “re-staking” the Fire District 1 proposal back to the 2010 budget. The 2010 budget for the Fire Department is $7.972 million. Because the modeling spreadsheet is continually updated for CPI, bargaining agreements, etc., he removed all the adjustments in the modeling software for the Fire Department to return to the original budget of $7.972 million. This provides an objective basis from which to measure the savings. He summarized if the 2010 budget is modified as a result of the contract, staff would start with that number. Councilmember Wambolt commented the original budget contained 4.5% for wages but the model reduced it to 2%; that 2.5% reduction was virtually all the change. Mr. Hines agreed, emphasizing that was a fluctuating estimate. When the current forecast is updated, he would consider whether that amount was viable and whether it needed to be raised or lowered. The choice was whether to measure the savings from a fluctuating estimate or a stable base of the original budget. Councilmember Orvis referred to the comparison of Option 1 versus Option 4, which shows the Fire Department budget of $7.9 million, fire contract $6.2 million and 2010 savings of $983,000. One of the differences was the revenue difference because of the loss of the Woodway and Esperance contract which brings the cost to $6.8 million. He asked the reason for the difference. Mr. Hines answered the difference was retaining transport fees of $700,000/year. Councilmember Orvis pointed out transport fees were retained in both Option 1 and 4. Mr. Hines explained this was a comparison of the General Fund subsidy in the current budget with the General Fund subsidy with Option 4. The General Fund subsidy in Option 4 is $983,000 lower than the current situation. The reason it was $983,000 lower was the loss of some overhead costs and transport fees. Councilmember Orvis asked what was included in the $6.2 million. Mr. Hines answered that was the contract amount proposed by Fire District 1 and is based on their estimate of labor costs for 2010. Fire Chief Tomberg explained the $6.2 million was the labor cost to staff stations, plus the Packet Page 195 of 339 overheads, the Fire Marshal and the Fire Inspector, and vehicle replacement. He advised this was detailed in Exhibit C of the original August 24 binder. Council President Wilson referred to Mr. Hines’ response this afternoon to Councilmember Wambolt’s email, observing the previous numbers included the year-to-date actuals and impacted the 2010 outlook based on those actuals and the new numbers did not include any actuals and relied solely on budget numbers. Mr. Hines responded the old numbers factored in estimates, CPI changes, etc. He reversed out those changes to put the Fire budget back to its original state in January to allow measurement of the savings from the original budget in January. In that manner, the 2010 and 2009 budgets are stated using the same budget methodology and rationale and the savings are measured from the budget. Council President Wilson commented these are the budget numbers as of January 2009 and not the actual numbers as of October 20, 2009. He recalled when the budget was developed in August 2008, the outlook changed based on the collapse in September but the final budget was developed in October and approved in November. Mayor Haakenson noted the 4.5% was already factored into the 2009 and 2010 budget. Council President Wilson clarified if the numbers are the January 1, 2009 numbers, those numbers are from a process that began in August 2008 and finalized in October. He reiterated they were not the most recent known numbers. Mr. Hines referred to the 2008 actual column in the current forecast, the actuals as of the end of January 2009, pointing out the spreadsheet was the outlook/forecast but had been modified to reflect the Fire Department’s original budget to allow an easier comparison of the impact of the proposal on the Fire budget. His intent was to isolate the Fire budget. Council President Wilson commented the challenge with looking at the budget was recognizing that the budget was very conservative and the budgeted savings could be very different than the actual savings. For example, the EMS transport fees, the budget was $700,000 and he believed the actual amount would far exceed that. He asked whether Mr. Hines had addressed his questions regarding transport fees. Mr. Hines answered he had not. He recalled Council President Wilson anticipated revenue from transport fees would exceed $700,000 in 2009. He explained the City has received $440,000 in transport fees through the end of September 2009 and he anticipated the $700,000 amount would be achieved for 2009. Mayor Haakenson asked whether transport fees were projected to increase in future years. Mr. Hines answered it was projected to increase by 2.5-3% per year. Council President Wilson answered that amount was appropriate for budgeting but he was certain the revenue would exceed $700,000 next year because the year-to-date transport fees for 2009 were short at least 1 month and possibly as much as 3. Council President Wilson expressed concern with the Council selecting a preferred alternative tonight when staff had not had enough time to answer the questions he raised two weeks ago. Mr. Hines responded the questions Council President Wilson’s raised in his PowerPoint had been answered. He suggested Council President Wilson and he meet to determine which questions had not been met. Mayor Haakenson acknowledged transport fees would increase in the future. A modest increase of 2.5-3% was budgeted; he viewed anything more than that as imprudent budgeting. Council President Wilson commented the Council had not had enough time or information to make a decision tonight on a preferred alternative. There were fundamental budgeting differences between the actuals. For example, the City did not receive any transport fees in January, 1/12th of the year or 8%. A 2.5% increase was not the same as an 8% increase. Mayor Packet Page 196 of 339 Haakenson responded staff had prepared the budget and was standing by those numbers. The Council could add 10% or $70,000 to that revenue stream if they wished. \ Councilmember Bernheim recalled Chief Tomberg mentioned he wanted to move his office from the third floor of City Hall to be closer to his men. He asked where Chief Tomberg’s office would be located under the Fire District 1 contract. Chief Tomberg answered if the Council approved the Fire District 1 contract, he would be assigned to the Fire District 1 Administration building southeast of Mariner High School and adjacent to the training tower. Fire Station 11, the largest station Fire District 1 operates with the most personnel, is kitty-corner from the site. Councilmember Bernheim asked how much closer that office would be to the Fire Department than his current office. Chief Tomberg answered it was approximately the same or slightly further but it was a much larger station. Councilmember Bernheim asked whether there were plans under the Fire District 1 contract to abandon the costly training exercises at the North Bend facility and utilize the new Fire District 1 training facility instead. Chief Tomberg answered the only training that was done at North Bend that could not be done locally was live fire exercises where a building similar to the training tower is fire loaded and set on fire under strictly controlled conditions. Every Fire Department on the west side goes to North Bend for that training. Councilmember Bernheim asked whether that training could be conducted at the new Fire District 1 training facility. Chief Tomberg answered it was unlikely the Air Pollution Control District would allow that type of burning at the site. The Fire District 1 training facility does have a smoke room in which non-toxic smoke and conditions similar to an interior structure fire can be simulated. Exercises with actual flames, heat, etc. are conducted at North Bend. Councilmember Bernheim concluded even Fire District 1 went to North Bend for that training. Chief Tomberg agreed. Councilmember Bernheim asked whether the Edmonds Fire Department planned to use the Fire District 1 facility for training if the contract were not approved. Chief Tomberg answered there would be opportunities to use it on Fire District 1’s schedule. Councilmember Bernheim commented levels of service for Edmonds residents under the contract would not change. Chief Tomberg answered the response time aspect of level of service would not change much because the fire stations would be in the same locations, staffed by the same personnel and at the current levels. The level of service of all the other services offered by Fire District 1 would increase via the contract such as enhanced career development opportunities for firefighters, improved training, a dedicated Public Education person, a dedicated Public Information person, three Medical Service Officers, a dedicated Safety Officer, as well as other programs that Edmonds could not provide. Councilmember Orvis commented because both Options 1 and 4 included transport fees, the projected revenue from transport fees did not affect the savings. Councilmember Wambolt commented the discussion regarding transport fees was only relevant in the option where the City sold the land and the transport fees were collected by Fire District 1; in the options where the City retained the land and the transfer station, the savings would be greater if the transport fees exceeded the projected $700,000. Mayor Haakenson opened the public participation portion of the public hearing Lora Petso, Edmonds, commented she did not receive the information until today and wanted additional time for review. If the Council chose to select an option tonight, she recommended Packet Page 197 of 339 selecting an option that retained the transport fees and did not require spending down the ending cash balance. However, if that were done, the contract with Fire District 1 no longer solves the City’s budget issues and the Council was likely to approve placing a levy on the ballot. She suggested allowing the public to vote in February whether to contract with Fire District 1 for fire service at the same time as the levy. Al Rutledge, Edmonds, commented the taxpayers had invested a great deal in the fire station, apparatus and equipment. He agreed with the suggestion to allow the citizens to vote whether to contract with Fire District 1. Diane Buckshnis, Edmonds, thanked firefighters Doug Dahl and Tim Hoover for spending time with Dr. Senderoff and her to review the contract, the RFA concept, and the history of the contract offer. Information provided at last week’s meeting was also very helpful. She recommended slowing down the process and taking another 2-4 weeks to discuss the issue because many citizens were still confused. Hearing no further comment, Mayor Haakenson closed the public hearing. Councilmember Wambolt summarized the options: 1. Without Fire District 1 Contract - business as usual, expenses exceed revenue in 2010; General Fund ending cash balance goes negative in 2011. 2. With Fire District 1 Contract - sell all the Fire Department assets to Fire District 1, place the proceeds in the General Fund to operate the City, lose transport fees of $700,000+/year, expenses exceed revenue in 2013, General Fund ending cash balance goes negative in 2015 3. With Fire District 1 Contract (revenue removed) - sell all the Fire Department assets to Fire District 1, place the proceeds outside the General Fund, lose transport fees of $700,000+/year, expenses exceed revenue in 2011, General Fund ending cash balance goes negative in 2012 4. With Fire District 1 Contract (sell apparatus; keep stations, land, and transport fees) - sell all the depreciating assets and retain all the appreciating assets. Place the proceeds in the General Fund to operate the City, retain transport fees, expenses exceed revenue in 2011, General Fund goes negative in 2013. 5. With Fire District 1 Contract (sell apparatus-revenue removed; keep stations, land, transport fees) - sell all the depreciating assets and retain all the appreciating assets, place the proceeds outside the General Fund, retain transport fees, expenses exceed revenue in 2011, General Fund goes negative in 2012. 6. With Fire District 1 Contract (keep stations, land, apparatus, and transport fees) - expenses exceed revenue in 2011 and General Fund ending cash balance goes negative in 2012. Councilmember Wambolt commented regardless of the option the Council chose, the City would still need to take a levy lid lift to the voters next year. This was not a permanent fix. He did not agree with taking the issue of whether to contract with Fire District 1 to the voters, remarking it would be a monumental achievement if everyone in the Council Chambers understood the issue; getting 26,000 voters to understand would be impossible. This was a decision for the Council to make. Council President Wilson commented although he could see how he was going to vote eventually, he did not want to be pushed into it. The service level increases were not enough to justify contracting. For example there would be no change in response times and no Packet Page 198 of 339 change/increase in emergency services. There would be public information benefits and it would be easier to calendar training at a training tower the Fire Department already has access to. The question of finances was the primary issue and the Council was still working on that. Council President Wilson pointed out the Council had not been provided any numbers with regard to the passage of I-1033, which polls currently estimate has a 61% approval rate. He anticipated if the City had to fix its General Fund to inflation, at the end of the first five years of the contract, the City would have a $7 million budget deficit. If the Council did not approve contracting for fire service with Fire District 1, at the end of five years, the City would still have a $7 million deficit. This did not solve the City’s financial problems. The issue of ensuring that fire services were secure had not been addressed. Council President Wilson summarized the information provided did not address I-1033, which the voters would decide on in two weeks, nor did it address how to ensure the stability of fire services into the future. He was unable to vote on a preference until the numbers were provided because the question was not about service, it was about finances. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCIL PRESIDENT WILSON, TO CONTINUE FURTHER DISCUSSION UNTIL NOVEMBER 24, 2009 WHEN FINAL NUMBERS WOULD BE AVAILABLE. Councilmember Bernheim agreed this was not a permanent fix. It was a sale of Fire Department assets in order to generate income to cover a short term gap of 3-4 years. He used the analogy of selling one’s home and using the equity to pay rent, concluding that was a short term recipe for disaster. He anticipated the City would get rid of its Fire Department and in 10-12 years when contract rates had increased substantially, citizens would question why the Council sold the Fire Department. He did not view this as an urgent issue, recalling a very successful plan was developed to place a levy on the ballot. He recalled the levy included funds for the Fire Department. If money was an issue, he suggested placing the levy on the ballot rather than selling the City’s assets to generate short term capital. Councilmember Bernheim commented the current fire service was outstanding and questioned why anyone wanted to tinker with it. He objected to the rush to approve the contract by the end of the year, noting the only thing that would achieve was end of the year advantages for employees. He pointed out it was clear the union wanted new management. He referred to the frustration voiced by the firefighters with funding issues in every budget which led to their desire to get out of the current system and under new management. He reminded the firefighters had contracts and if there were give-backs, it was due to the panic in the economy and the alternative of layoffs. Councilmember Bernheim summarized the reason he was recommending postponing further discussion was because it was not an urgent financial problem, the Council should be focusing on the levy rather than selling off its assets, the union clearly wants new management, and he wanted time to see the real numbers. He suggested there were alternatives such as working out the management problems. Mayor Haakenson referred to Councilmember Bernheim’s comment that Mr. Hoover had described management problems last week rather than revenue problems and the City’s inability to fund the Fire Department each year. He asked Mr. Hoover if he had mentioned management problems. Tim Hoover, President, Edmonds Firefighters Local 1828, responded he did not talk about management problems; he talked about the annual fight for funding to maintain levels of service. Packet Page 199 of 339 Councilmember Plunkett suggested narrowing the options to a preferred option which would allow the public to learn more about and speak to that option. He did not support a motion to set a date to continue discussion, noting the selection of a preferred option would lead the Council to that. Councilmember Orvis agreed with selecting a preferred option, pointing out staff did not need to continue generating numbers for selling the land if none of the Councilmembers supported that option. Similarly, the projection for transport fees was not relevant unless the Council was interested in selling the stations. He was in favor of retaining the land and the stations. He commented Option 1 was always under consideration and recommended moving forward with discussion on Option 4 which saves the City a significant amount of money operationally. If the Council narrowed the Options to 1 and 4, it was not a final decision but would focus the discussion. He suggested having the contract rewritten to reflect Option 4 and to hold another public hearing on the scenario of Option 1 versus 4 at the next meeting. Councilmember Wambolt agreed with the suggestion to narrow the options. He asked Councilmember Bernheim what new numbers he was waiting for. Councilmember Bernheim responded his understanding was the numbers were not final, referring to an email sent late this afternoon. Mr. Hines explained the email was simply an explanation of why some of the numbers changed; the numbers provided to the Council were final. Councilmember Wambolt commented the fire service contract would not be a solution to I-1033. The solution to I-1033 would be a levy. Council President Wilson responded the question of what the City would do if I-1033 passed and how it affected this decision needed to be addressed. There were other solutions to consider such as creating an independent Woodway-Edmonds Fire District or reverse annex into Fire District 1 rather than contract for fire service with Fire District 1. Mayor Haakenson pointed out if I-1033 passed, the City would be in a better position with a contract with Fire District 1 than its own Fire Department in an amount of approximately $2 million/year. The deficit in 2011 without the contract is $635,000; with the contract it is $2.3 million. He summarized the City would have issues with I-1033 regardless. Councilmember Wambolt clarified Council President Wilson’s point was the City would be worse off with I-1033 and a contract with Fire District 1 because the City would be stuck with a contract payment. Council President Wilson agreed, noting the City would be unable to terminate the contract for five years. He recommended waiting until the outcome of I-1033 was known before entering into a contract that would tie the City’s hands for five years. Mayor Haakenson stated he would prefer a contract for $6.2 million for five years rather than a $9 million Fire Department. Council President Wilson clarified there were many figures in the $9 million that were not direct financial savings such as non-departmental costs. Councilmember Wambolt commented his analysis showed the $6.2 million was definitely less than the City could provide fire service for and less than the Fire Department payroll. Even if the City’s finances were in tremendous shape, the City should be evaluating this because it made the Fire Department more efficient. UPON ROLL CALL, MOTION FAILED (1-6), COUNCILMEMBER BERNHEIM VOTING IN FAVOR; AND COUNCIL PRESIDENT WILSON AND COUNCILMEMBERS ORVIS, PLUNKETT, OLSON, PETERSON AND WAMBOLT OPPOSED. Packet Page 200 of 339 COUNCILMEMBER ORVIS MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO DRAFT AN AGREEMENT FOR OPTION 4 AND PLACE IT FOR PUBLIC HEARING WITH COMPARISON FROM OPTION 4 (WITH FIRE DISTRICT 1 CONTRACT - SELL APPARATUS; KEEP STATIONS, LAND, AND TRANSPORT FEES) TO OPTION 1 FOR THE NEXT MEETING. COUNCILMEMBER PETERSON SECONDED THE MOTION. If the Council planned to pursue a contract with Fire District 1, Councilmember Orvis recommended it be via Option 4. Councilmember Peterson supported narrowing the options which would give staff and the public an opportunity to focus on one option. If this wasn’t the preferred option at the end of the discussion, Council could focus on a different option. Councilmember Wambolt asked if the intent was to have the contract rewritten to reflect Option 4. Councilmember Orvis answered yes. Mayor Haakenson explained the contract for service did not change with any of the options. The Interlocal Agreement would change if the stations and land were not part of the sale. Council President Wilson clarified the motion was to schedule this on next week’s agenda. He asked Mayor Haakenson if the updated information would be available for public review by Friday. Mayor Haakenson stated all the information would be available on the City’s website by the end of the week. Council President Wilson asked whether that was enough time for the public to review and comment and for the Council to make a decision next week or if Councilmember Orvis envisioned additional public hearings. Councilmember Orvis responded he was uncertain whether he would be ready to make a decision next week but anticipated he could by the November 2 meeting. Mayor Haakenson restated the motion as follows: TO SCHEDULE A PUBLIC HEARING FOR OCTOBER 27 ON OPTION 4 (WITH FIRE DISTRICT 1 CONTRACT - SELL APPARATUS; KEEP STATIONS, LAND, AND TRANSPORT FEES). UPON ROLL CALL, MOTION CARRIED (5-2), COUNCILMEMBERS PETERSON, PLUNKETT, WAMBOLT, ORVIS AND OLSON IN FAVOR; AND COUNCIL PRESIDENT WILSON AND COUNCILMEMBER BERNHEIM OPPOSED. (Council President Wilson left the meeting at 8:18 p.m.) Packet Page 201 of 339 EXCERPT FROM THE OCTOBER 27, 2009 DRAFT CITY COUNCIL MEETING MINUTES 4. PUBLIC HEARING ON FIRE DISTRICT 1 CONTRACT, OPTION 4. IN ADDITION TO CONTRACTING FOR SERVICES WITH FIRE DISTRICT 1, THIS OPTION INCLUDES SELLING APPARATUS (ENGINES, AID CARS, AND EQUIPMENT), AND KEEPING FIRE STATIONS, LAND AND TRANSPORT FEES. Councilmember Wambolt referred to the question posed by the public regarding how Fire District 1 could provide fire service to Edmonds for $6.2 million/year, explaining in reality the amount was approximately $7.3 million. The City would pay Fire District 1 $6.2 million/year and Fire District 1 would no longer pay Edmonds approximately $700,000 to provide fire service to Esperance. In addition, Fire District 1 would likely negotiate a contract with Woodway which would generate additional revenue. Mayor Haakenson opened the public participation portion of the public hearing. Dave Page, Edmonds, asked if the City had held other public hearings. Mayor Haakenson answered there had been five opportunities for public comment. Mr. Page spoke in favor of contracting for fire service with Fire District 1, envisioning it would be beneficial to the City, the citizens and the Fire Department employees. He anticipated everyone would look back on this in the future as a win. He urged the Council to embrace regionalization and vote in favor of the contract. Al Rutledge, Edmonds, explained the City previously discussed fire service consolidation with Mountlake Terrace, Lynnwood and Brier when Laura Hall was the mayor. He reported Lynnwood signed a medical services contract with Mukilteo. He relayed a report in the Mukilteo Beacon that Edmonds and Mukilteo were involved in ongoing discussions with Fire District 1. He remarked that Lynnwood was considering cancelling their December meetings as a cost saving measure. Roger Hertrich, Edmonds, commented research that has been done indicates Edmonds received less that it should have from Fire District 1 for providing fire service to Esperance. In addition, Woodway has been getting a good rate for fire service from Edmonds. He envisioned the rates for Esperance and Woodway residents would increase when fire service was provided by Fire District 1 and expressed concern that representatives from those communities had not been involved in the discussions. Rich Senderoff, Edmonds, was glad the Council was no longer considering the sale of the fire stations and land. With regard to the public hearing process, he pointed out the difference between public comment and a public hearing. Public comment to date has been useful in providing the Council feedback during their deliberations. Public hearings should begin once the final proposal is made and the deliberations have reached an end. He pointed out often life got in the way and citizens did not have time to follow issues being considered by the Council. Citizens often wait until the Council has completed their deliberations and a proposal has been finalized before providing comment. George Murray, Edmonds, thanked Councilmember Wambolt for the work he has done on the proposal, Council President Wilson for the questions he has raised, and Ms. Buckshnis and Ms. Packet Page 202 of 339 Petso for their questions. He remarked the contract for fire service represented approximately 20- 30% of the City’s budget. Consideration of the contract for fire service differed when it was for revenue purposes versus something the firefighters want. He suggested the Council contract with an outside, independent analyst to review the numbers, particularly assumptions such as fuel costs, the cost of department heads, and growth rates. He urged the Council not to rush into a contract. Diane Buckshnis, Edmonds, commented the City’s website had been down and she had only recently received the information regarding this agenda item. She remarked citizens are still confused and according to the Firefighters Union lost revenue could be as much as $2.5 million. She requested the City provide accurate information regarding the amount of revenue that would be lost via contracting with Fire District 1. She pointed out this was not a valid public hearing as information regarding Option 4 had not been available to the public. Hearing no further comment, Mayor Haakenson closed the public hearing. 5. CITY COUNCIL DISCUSSION ON FIRE DISTRICT 1 CONTRACT, OPTION 4 In response to comments made during the public hearing, Council President Wilson reported the Council took public comment regarding the Fire District 1 contract on September 15 and 22 and October 6 and 13; public hearings were held on October 20 and tonight; and another public hearing was scheduled for November 2. To Dr. Senderoff’s comment that life gets in the way, Mayor Haakenson agreed people did not have time to attend Council meetings or make their wishes known to the Council and that was why they elected the Mayor and Councilmembers. Council President Wilson referred to Section 2.9 of the Interlocal Agreement regarding response time, recalling in the past the Edmonds Fire Department met six of the eleven standards. This section indicates if more than six of the standards are met, the City and Fire District 1 would meet to discuss how to pay for the difference. He asked whether Fire District 1 would increase the cost of the contract if response times improved so that eight of the eleven standards were met. Fire Chief Tom Tomberg answered no, anticipating the only way Fire District 1 would increase the cost would be if the City asked to add services such as another fire station or additional personnel. Mayor Haakenson pointed out this section also provided a process if Fire District 1’s response times did not meet the City’s expectations. Council President Wilson referred to Section 4.8, and asked why the Interlocal Agreement still included the EMS transport fee language. Chief Tomberg answered the language was provided by the City Attorney. Fire District 1 will provide the EMS service, collect a transport fee and remit the fee to the City on a quarterly basis less the cost of collection. That process was the result of three opinions from the Office of the Inspector General that stated in order to collect Medicare, the cost must be collected by the provider of the service. He offered to email the Council the three opinions. Council President Wilson referred to Section 6.3, sale of the rolling stock, and asked if the City would be retaining any vehicles. Chief Tomberg answered the City would not retain any vehicles. Council President Wilson expressed appreciation for the addition of Section 8.2, a joint annual meeting. With that language, he was less concerned about also having an annual meeting with Packet Page 203 of 339 two Fire District 1 Commissioners and two Councilmembers. Mayor Haakenson suggested retaining the language and a decision could be made annually regarding whether a meeting was necessary. Council President Wilson referred to Section 11.1 regarding the first 5 years, questioning why the Interlocal Agreement did not allow the City to terminate the contract until 5 years had elapsed plus 2 years notice. Chief Tomberg answered this was modeled after the Mountlake Terrace and Brier contract. The reason for the 5 year period was the substantial investment made by Fire District 1. Council President Wilson questioned the reason for a 2-year notice rather than 12 months. Chief Tomberg answered it would give both the Fire District 1 and the City an opportunity to ensure the termination occurred in an orderly manner. Council President Wilson preferred to change the notice from 2 years to 1 year, anticipating since the Council would complete this process by December, it could be unwound in less than 2 years. He suggested termination of the contract be allowed to occur in 3 years. Council President Wilson referred to Section 11.5, Regional Fire Protection Service Authority, expressing concern that this section gave all the decision-making and policy-making authority to Fire District 1. He suggested the City retain the authority to enter into an RFA without Fire District 1 if they wished. Chief Tomberg explained the City Attorney and Fire District 1’s attorney drafted this section. He recalled until fall 2008, the City was involved in RFA discussions with the south county service providers, a process that was led by Fire District 1. Mayor Haakenson explained this section allowed Edmonds to opt out of a RFA if Fire District 1 wanted to form a RFA and Edmonds did not want to join. He remarked realistically Edmonds would never be part of a RFA that did not include Fire District 1. Council President Wilson agreed with Mayor Haakenson’s assumption regarding a RFA, commenting at some point he wanted to examine the concept of a Fire District comprised of Edmonds and Woodway or Edmonds, Woodway and Mountlake Terrace or reverse annexation into Fire District 1. He wanted to provide the Fire District 1 the same opportunity to opt out that was provided to the City in Section 11.5. The same was true for Sections 12.1 and 12.1.3 which provides the City the opportunity to opt out if the City declined to merge into a Fire District. He requested language be added that would allow Fire District 1 to opt out if they declined to merge into a Fire District or if they were opposed to the City annexing into Fire District 1. Councilmember Wambolt referred to Mr. Murray’s comment about the City continuing to pay for department heads, explaining under the proposed contract, the Fire Chief, Assistant Fire Chief and the Executive Assistant would all transfer to Fire District 1. With regard to Mr. Hertrich’s comments that Esperance and Woodway were not involved in the contract discussions, Councilmember Wambolt advised Woodway’s Mayor Pro Tem attended the joint meeting between the Council and Fire District 1 Commissioners. He agreed it was likely Esperance and Woodway would experience a greater expense for fire service. He remarked a total of 12 different citizens spoke regarding the Fire District 1 contract, 27 times. Councilmember Wambolt commented the financial situation was very compelling. He agreed there needed to be some refinement such as suggested by Mr. Murray regarding fuel projections, however, that refinement would be very slight. He pointed out under Option 1, expenses through 2016 would exceed revenues by $21.1 million. Under Option 4, expenses through 2016 would exceed revenues by $12.4 million. Over that seven year period, the City would be $10.6 million better off under Option 4 than Option 1. He summarized contracting for fire service with Fire District 1 did not solve the City’s financial problem; a levy lid lift would still be necessary. Packet Page 204 of 339 Mayor Haakenson referred to Ms. Buckshnis’ comment that the Firefighters Union indicated there would be a $2.5 million loss by contracting with Fire District 1. Tim Hoover, President, Edmonds Firefighters Local 1828, responded he was not aware of that. Councilmember Bernheim commented he wanted to be certain he understood the basis for the Union’s support: to stabilize public safety funding and staffing levels. He asked whether there had been a lack of stability in the actual funding levels of the Fire Department. Mr. Hoover answered there had been the threat of lack of funding every year. Last year through the work of the City Council as well as Fire Administration and the Union, the EMS levy was increased and transport fees were initiated which generated an additional $1.5 million. To date, the threat of insufficient funding has been circumvented by identifying additional revenue sources. Councilmember Bernheim acknowledged there had been threats but actual funding for the Fire Department had remained stead and stable. Mr. Hoover agreed it had but the Fire Department was included in discussion regarding across-the-board cuts every year. He pointed out the Fire Department’s budget had been cut in the past including the loss of the Assistant Fire Chief five years ago. Councilmember Bernheim asked how this proposal accomplished regionalization and why regionalization was the best way to provide the highest level of service. Mr. Hoover answered savings were based on economies of scale by reducing overhead costs while maintaining levels of service. This was beneficial to citizens because instead of relying on automatic aid, assistance was provided by the neighboring fire station that was within the same organization. Councilmember Orvis requested page 545 of 1057 of last week’s packet, Option 1 versus Option 4, also be available on the City’s website. Councilmember Orvis commented after talking with Chief Tomberg as well as the Fire District 1 Chief, he learned Fire District 1 sends its firefighters for live fire training in North Bend on overtime. Because Edmonds cannot afford to pay overtime, when Edmonds firefighters go to North Bend, there is a hole in service in the City. Fire District 1 does a much better job providing coverage for firefighters attending training. Councilmember Peterson pointed out the required 2 year written notice in Section 11.2 could be beneficial to Edmonds. In the event Fire District 1 wanted to terminate the contract, Edmonds would need at least that much time to establish its own fire service. He summarized the 2 year written notice was beneficial to both the City and Fire District 1. He agreed with the 5 year termination clause in Section 11.1 in view of the significant outlay of resources by Fire District 1. He noted the 5 year period was also important for the firefighters who transferred to Fire District 1. He summarized the 5 year period was appropriate from both a contractual as well as a service aspect. Councilmember Plunkett asked Councilmember Orvis whether he envisioned the Council would vote on the contract at the November 2 meeting. Councilmember Orvis responded yes, explaining he crunched the numbers this weekend and was unable to find any flaws; contracting with Fire District 1 would save the City money in the long run. He did not anticipate terminating the contract unless Fire District 1 charged the City more than the City could provide the service itself which he did not envision would happen. He spoke in support of Option 4 and suggested the November 2 agenda include a public hearing as well as state that the Council may take action on Option 4. Packet Page 205 of 339 Councilmember Bernheim noted the contract was a 20 year term and the base rate could be renegotiated after 20 years. Mayor Haakenson agreed the base rate in 20 years would be different than the base rate today. The contract language states the contract would be negotiated identically as it was today. Councilmember Bernheim observed the base rate of $6.2 million was established for next year and each year it would be adjusted depending on the factors identified in the contract such as labor costs, equipment replacement, etc. Chief Tomberg advised the contract would be adjusted annually for CPI. Mayor Haakenson advised a larger increase would occur when labor contracts were negotiated. Councilmember Bernheim asked if all the potential cost increases were limited to CPI. Chief Tomberg advised that information was detailed in Section 4.5. Councilmember Bernheim summarized if the City retained its own Fire Department, in 25 years the City would be in charge of how much the fire service cost which was not necessarily true if the City contracted for fire service. Councilmember Bernheim remarked he was impressed with the competency, command, capacity and confidence of the Fire District 1 Commissioners. However, he was concerned with turning over the City’s fire service to Fire District 1 when the citizens would not have an opportunity to vote for the Commissioners. Councilmember Bernheim asked if the contract addressed the new base rate when the contract expired in 20 years. Mayor Haakenson answered it did not. Councilmember Bernheim responded that was his primary reservation with this contract. He agreed the City’s financial situation was dire and that the City budget would be easier over the next five years if the City contracted with Fire District 1. If citizens wanted to retain control of the Fire Department, they should expect to pay the full cost of the Fire Department. He favored placing a levy on the ballot to allow the voters to indicate whether they were willing to pay for services. He supported the levy and the Edmonds Fire Department but was hesitant to give up control of the Fire Department. Council President Wilson commented he had sufficiently vetted the service and financial questions but did not feel the public has had sufficient time to vet the financial questions. He was inclined to vote for the contract but was concerned 7 years was too long to obligate the City without any flexibility. He asked whether in 2002 Mayor Haakenson would have been in favor of obligating the City for 7 years. Mayor Haakenson answered he has been reviewing the contract proposal since April 2009 with the Fire Chief, two Finance Directors, the City Attorney, and 5 public hearings where 12 people have spoken 27 times. During that time he had not received any calls from citizens expressing concern with the contract. Also during that time he held a neighborhood meeting where the only person who raised the issue was a Lynnwood Fire Department employee who lives in the City. He has attended meetings where political questions were raised and no one has brought up the issue of the fire service contract with Fire District 1. The issue has been on the front page of both newspapers for months, on the City’s website, and on Channel 21. He assured he would not have offered the contract to the Council if he did not believe in the contract terms, that there were financial savings, and that the citizens would be better served. Whether it was 2002 or 2009, the believed this was the right thing to do. Mayor Haakenson commented in 2002 he had no idea what would happen in the next 7 years, nor did he know what would happen in the next 7 or even 20 years. This contract would put the City in good stead for the next 2-3 years although a levy would still be necessary. He concluded the 5 year termination clause protected the City as well as Fire District 1 due to the huge investment they were making in taking on the Edmonds Fire Department employees and equipment. If the Packet Page 206 of 339 Council preferred a 1-year notice, that could be negotiated; however, he had no issue with the 2- year period. If he were Mayor and the Council decided in 5 years to opt out of the contract, he would want as much time as possible to set up the City’s Fire Department. Council President Wilson reiterated he felt 5 years plus a 2-year notice was too long. Pointing out the Council would be completing the contact over the course of 2 months including the sale of the fire apparatus, he envisioned that could be reversed in 12 months. He anticipated it would be a totally different world in 5 years; the situation was much different today than it was in 2003. He acknowledged a termination clause of less than 5 years or a notice period of less than 2 years may be totally unacceptable to Fire District 1. He also planned to work with City Attorney Scott Snyder to develop opt out language in the contract for Fire District 1. Mayor Haakenson suggested Council President Wilson determine whether at least four Councilmembers agreed with having the City Attorney develop that language, noting the City Attorney’s policy of not spending more than on hour on an issue unless at least four Councilmembers agreed. Council President Wilson assured his request would not consume more than one hour of the City Attorney’s time. With regard to the 2-year notice, Councilmember Peterson commented the formation of a RFA would be a lengthy process. If Edmonds wanted to form a RFA with Mountlake Terrace and Woodway, the 2-year notice would be desirable and as beneficial to Edmonds. He cautioned the Council should not pursue a contract with the idea of getting out of it; if the concerns were that great, the City should not enter into the contract. Council President Wilson stated the 2-year notice period was for any reason other than a RFA. Councilmember Wambolt commented there was no relationship between the term of the contract and the notice period. If it were a 3-year contract, a 2-year notice may still be desirable. He commented if the City wanted to terminate the agreement, planning could occur before notice was given; if Fire District 1 wanted to terminate the agreement, the entire 2-year period may be necessary. He asked Chief Tomberg whether a Fire Department could be established in one year, noting the contract with Fire District 1 was able to be completed relatively quickly because all the staff were transferring to Fire District 1. If Fire District 1 terminated the contract, the employees may not necessarily transfer to the City and recruitment may be necessary. Chief Tomberg responded he was hopeful the City was not contracting for fire service in 20 years; he hoped a RFA would be formed in the near future. He commented although the discussion was about regionalization, the concern seemed to be Edmonds having its own Fire Department again. He relayed the Mukilteo Beacon reported last week that the offer Fire District 1 made to Mukilteo was not presented to the Mukilteo City Council. Mukilteo is watching Edmonds and may consider Fire District 1’s offer. With regard to setting up a standalone Fire Department, he remarked the more time, the better. Councilmember Wambolt commented he had no issue with the 5 year termination clause in light of the significant investment Fire District 1 was making. With regard to the notice period, he commented a great deal would need to be accomplished in the event the contract was terminated. Council President Wilson explained his primary concern was 2 years following 5 years. He would accept even 2 years within the 5 years or ideally 2 years with 3 years. He pointed out the City had not done any planning with regard to the impacts of I-1033. If I-1033 passes, it will be even more difficult for future Council’s to address the constraints of a 7-year wait before the contract with Fire District 1 which comprises approximately 20% of the City’s budget, could be Packet Page 207 of 339 terminated. He was concerned the Council had not discussed how it would effectively manage the budget in a post I-1033 world. Councilmember Wambolt commented the passage of I-1033 would require a levy lid lift. Council President Wilson pointed out all other City services, including police and parks, would be at greater risk if I-1033 passed, a levy failed and the Council did not have the ability to terminate the fire service contract for 7 years. Mayor Haakenson responded if I-1033 passed the Police Department and Fire Department would continue to be funded, parks may not. Further, fire service would cost the City $1 million less via contracting with Fire District 1 than the City having its own Fire Department. He commented if I-1033 passed and the City were in dire straits, the only option to reduce the cost of fire service would be to close a fire station or lay off firefighters. He suggested the Council deal with I-1033 if it passed, commenting it had no effect on the fire service contract. Council President Wilson clarified he was not suggesting that a fire station be closed or that firefighters be laid off. He was interested in exploring other options such as annexing into Fire District 1 or a standalone Fire District with Mountlake Terrace or Woodway. If the Council planned to pass the fire service contract next Monday with the outcome of I-1033 unknown, he preferred to have some flexibility with regard to termination of the contract. Mayor Haakenson responded he had no interest in forming a new Fire District today or if I-1033 passed because it was not a good thing for Edmonds citizens. Mountlake Terrace and Brier have a good contract with Fire District 1 and were not interested in forming a Fire District with Edmonds; they are interested in a RFA with Fire District 1. He summarized the City’s future was with a RFA, not an Edmonds/Woodway or Edmonds/Mountlake Terrace Fire District. Councilmember Orvis commented he found the proposed language acceptable and viewed contracting for service with Fire District 1 as a more stable situation for the Fire Department. He did not envision addressing budget problems by reductions in the Fire Department under any circumstances. Councilmember Plunkett also found the proposed language acceptable, both the 5-year termination clause as well as the 2-year notice, noting those time periods provided stability and flexibility. He noted the contract did not restrict the City from taking action with regard to the formation of a RFA. If I-1033 passed, he would rather be in a contract for service with Fire District 1 than the City having its own Fire Department because it costs more for the City to operate its own Fire Department. He did not envision making cuts to the Fire Department even if I-1033 passed. Councilmember Wambolt agreed with Councilmember Plunkett, commenting the City was better off with a contract with Fire District 1 than on its own. COUNCIL PRESIDENT WILSON MOVED, IN SECTION 11.2 RELATED TO YEARS 6 THROUGH 20, TO CHANGE THE LANGUAGE TO READ, “EITHER PARTY MAY TERMINATE THIS AGREEMENT AFTER THE FIRST FOUR YEARS...BY PROVIDING THE OTHER PARTY WITH ONE YEAR WRITTEN NOTICE...ONCE FOUR YEARS HAVE ELAPSED AFTER THE COMMENCEMENT DATE.” MOTION DIED FOR LACK OF A SECOND. Packet Page 208 of 339 Councilmember Bernheim questioned the language in Section 4.5. Chief Tomberg referred to Exhibit C in the binder where the costs were detailed. Mayor Haakenson pointed out the labor cost increase for 2010 was 2.14%. Council President Wilson commented if Councilmembers were not interested in making any change to the contract, he would not propose alternate language. There were no changes requested by any Councilmember. Mayor Haakenson suggested any changes be discussed tonight to allow the public time for review. Councilmember Bernheim questioned whether the term of the contract should be lengthened. Mayor Haakenson agreed with Chief Tomberg that it was unlikely the contract for fire service would be in place in 20 years because of the likelihood that the City would be part of a RFA. Mayor Haakenson clarified Option 4 as presented in tonight’s packet would be on the November 2 agenda for a public hearing and Council action. Council President Wilson asked for confirmation that it was the Council’s policy decision that the sale of the assets would be placed in the General Operating Fund. The Council agreed it was. Packet Page 209 of 339 AM-2569 6. Transfer of Control of Verizon Northwest to Frontier Communication Corporation Edmonds City Council Meeting Date:11/02/2009 Submitted By:Stephen Clifton Time:20 Minutes Department:Community Services Type:Information Review Committee: Committee Action: Information Subject Title Report to Washington Consortium regarding the transfer of control of Verizon Northwest Inc. to Frontier Communication Corporation - Workshop. Recommendation from Mayor and Staff The attached report from River Oaks includes a recommendation that "consent should be given by each Consortium member to the transfer of control of Verizon Northwest Inc. to Frontier subject to a mutually acceptable Transfer Resolution or Ordinance". This being said, the City Council will not be asked to take formal action until November 17, 2009. Previous Council Action February 26, 2008 - The Edmonds City Council directed the City Attorney to continue with a schedule which outlined possible "Next Steps" regarding negotiations with Verizon. March 25, 2008 - The Edmonds City Council authorized Mayor Haakenson to sign an Interlocal Agreement Consortium For Negotiation of Cable Television Franchising, in addition to preparing and executing a Consultant Agreement with River Oaks. July 22, 2008 - The Edmonds City Council conducted a first reading and public hearing related to the proposed Cable Franchise Agreement between the City of Edmonds and Verizon Northwest Inc. July 29, 2008 - The Edmonds City Council approved Ordinance 3693 adopting a Cable Franchise Agreement between the City of Edmonds and Verizon Northwest Inc. The City Council also authorized Mayor to execute the Franchise Agreement on behalf of the City. June 16, 2009 - The Edmonds City Council authorized Mayor Haakenson to sign, on behalf of the City, an Interlocal Agreement related to the Consortium for Negotiation of Transfer of Cable Franchise Agreement from Verizon Northwest, Inc. to Frontier Communications Corporation. The City Council also authorized Mayor Haakenson to sign, on behalf of the City, a Conflict of Interest Waiver. Narrative On May 13, 2009, Verizon announced plans to divest its local wireline communications system to Packet Page 210 of 339 On May 13, 2009, Verizon announced plans to divest its local wireline communications system to Frontier Communications. According to a May 19, 2009 letter to the City of Edmonds from both entities, the transaction includes Verizon’s residential and small business telephone lines, internet service, long-distance voice accounts, as well as Verizon’s fiber-to-the-premises (FTTP) assets; Frontier will provide video services after the completion of the merger. Due to the complexities related to processing this type of transaction application, a multi-jurisdictional Consortium was created similar to the process used to negotiate the Verizon and Comcast Interlocal Agreements. Participating jurisdictions contracted with River Oaks Communications Corporation and Ogden Murphy Wallace in June, 2009 for common services as well as a mechanism for each entity to utilize the consultant’s services, as that entity sees fit, and for additional support in reviewing or negotiating the transfer to meet specific needs of each participating jurisdiction. City staff and a representative from the City Attorney’s office met with representatives of Verizon and Frontier Communications on June 11, 2009. This allowed City representatives an opportunity to ask questions and to prepare for a potential transfer. Staff from jurisdictions participating in the Consortium also conducted similar meetings with Verizon and Frontier representatives. As required by the Federal Communications Commission, Form 394 must be used when applying for franchise authority approval to assign or transfer control of a cable television system. The franchise authority in this case is the City of Edmonds. In addition to the information requested on Form 394, cable operators are required to submit all information required by the cable franchise agreement or applicable local law or that the franchising authority deems necessary or appropriate in connection with the transfer determination. A franchise authority has only 30 days in which to review Form 394 to determine whether all necessary information has been provided and is complete. Under Federal law, the members of the Consortium have a duty from a due diligence standpoint to examine this transaction from a financial, legal and technical standpoint and ultimately approve or deny transfer of control based on these criteria. According to Section 617(e) of the Cable Television Consumer Protection and Competition Act of 1992, the franchise authority shall have 120 days from the date of filing Form 394 (complete with all exhibits and any information required by the franchise agreement or applicable state or local law) to act upon such request. If the franchise authority fails to render a final decision on such request within 120 days, the request shall be deemed granted unless the requesting party and the franchise authority agree to an extension of time. In this particular case, the timeframe was mutually extended by all parties until November 30, 2009. An October 21, 2009 report (Attachment 1) from River Oaks Communications Corporation includes a recommendation that "consent should be given by each Consortium member to the transfer of control of Verizon Northwest Inc. to Frontier subject to a mutually acceptable Transfer Resolution or Ordinance". This being said, the Edmonds City Council will not be asked to take formal action until November 17, 2009. The attached report also contains an executive summary, and information related to the following: background; a description of initial documents provided by Verizon/Frontier; the Consortium’s data requests #1 and #2 and request for information; Frontier Communication’s legal qualifications; plans and capabilities; customer rates and financing the transaction; prior ownership of cable systems; governmental and educational access channels and franchise fees; build-out of Verizon’s cable systems; data request #3; standstill Packet Page 211 of 339 agreement and reimbursement to the consortium members; technical capabilities of Frontier Communications; future customer service; programming; financial risks; and a conclusion. A draft Template Transfer Ordinance (Attachment 2) is also attached for your review. The ordinance, if approved by the City Council, consents to the transfer in accordance with the terms of applicable law, subject to and contingent upon three conditions. Language in the Template Transfer Ordinance notes that if the transfer does not close for whatever reason, then the consent provided for within the Ordinance shall be null and void, and the City shall be deemed to have disapproved the transfer of control under the Franchise and federal law, and all remedies under the Franchise and applicable laws shall be available to the City. In the event the Transfer does not close before January 2012, Verizon and Frontier will provide notice of that event to the City and an update on the reasons for such a delay in closing or notice of the termination of the Transfer. Fiscal Impact Attachments Link: Attachment 1 - Report from River Oaks Communication Corporation Link: Attachment 2 - Template Transfer Ordinance Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 02:28 PM APRV 2 Mayor Gary Haakenson 10/29/2009 02:31 PM APRV 3 Final Approval Sandy Chase 10/29/2009 02:38 PM APRV Form Started By: Stephen Clifton  Started On: 10/23/2009 04:15 PM Final Approval Date: 10/29/2009 Packet Page 212 of 339 1 River Oaks Communications Corporation Colorado Springs Office: 3 South Tejon, Suite 200 Colorado Springs, Colorado 80903 Telephone: (719) 477-6850 Fax: (719) 477-0818 E-Mail: tduchen@rivoaks.com Denver Office: 6860 South Yosemite Court, Suite 2000 Centennial, Colorado 80112 Telephone: (303) 721-0653 Fax: (303) 721-1746 E-Mail: bduchen@rivoaks.com REPORT TO WASHINGTON CONSORTIUM REGARDING THE TRANSER OF CONTROL OF VERIZON NORTHWEST INC. TO FRONTIER COMMUNICATIONS CORPORATION October 21, 2009 Executive Summary Verizon Northwest Inc. is the cable television franchisee in ten jurisdictions that comprise the Consortium. Approximately ten months after the franchise agreements were finished, Verizon Communications Inc. (“Verizon”), the parent company of Verizon Northwest Inc., announced that it had signed an agreement to transfer control of Verizon Northwest Inc. to Frontier Communications Corporation (“Frontier”) for approximately $8.6 Billion ($5.3 Billion in stock and $3.3 Billion in new debt). Frontier offers wireline telephone service and Internet service and acts as an agent for Dish Network which provides satellite television service. On June 1, 2009, FCC Form 394, its Exhibits and related materials were received by Consortium members. Under federal law, had the application been complete, the local franchise authorities would have had 120 days to approve or deny the transfer of control. Due to disagreements over the completeness of the submittal, the timeframe was mutually extended with Verizon and Frontier until November 30, 2009. The criteria for review are whether the transferee, in this case Frontier, has the legal, financial and technical qualifications to own and operate the cable television systems. The Consortium prepared Data Requests #1, #2 and #3 along with Requests for Information in order to be provided with necessary information to conduct its due diligence and evaluation. After reviewing several hundreds of pages of information, it is clear that there are questions as to whether this transaction will work from financial and technical standpoints. There are risks associated with it and no guarantees, but it is the responsibility of Frontier to make it work from ownership and operations perspectives. Packet Page 213 of 339 2 Frontier has indicated that it intends to abide by existing franchise requirements, has no plans to increase rates (although they do not guarantee this due to market conditions), will continue providing Governmental and Educational Access Channels and build-out the systems in accordance with the franchise. Frontier prides itself on its customer service and will be retaining the bulk of Verizon’s customer service personnel. As a result of the transaction, a smaller company is acquiring a larger one and the company’s debt to EBITDA (EBITDA is earnings before interest, taxes, depreciation and amortization) ratio is being reduced from about 3.8 to 2.6. Frontier continues to work on Video Transport Agreements and obtaining Programming Agreements. It is confident in its ability to address both of these issues as well as obtaining financing. Closing of the transaction is planned for April, 2010. Much additional detail with respect to these and other matters is provided below. Neither the local government members of the Consortium nor River Oaks Communications Corporation (“River Oaks”) is expressing an opinion as to whether Frontier will ultimately be successful financially, operationally or otherwise. We have not audited Verizon or Frontier or prepared independent financial projections. During the past five months, River Oaks and the Consortium Members have conducted an extensive review of information, including meetings between Verizon/Frontier and Consortium members, conference calls and a diligent and thorough review of these documents as required by federal law. River Oaks believes Frontier meets the criteria of being legally, financially and technically qualified. Thus, we recommend consent should be given by each Consortium member to the transfer of control of Verizon Northwest Inc. to Frontier subject to a mutually acceptable Transfer Resolution or Ordinance. It is Frontier’s and Verizon Northwest Inc.’s responsibility to make this transfer of control and acquisition successful from a business, technical, financial and customer standpoint. Background In response to public information that Verizon Communications Inc. (“Verizon”) was transferring Verizon Northwest Inc., the cable system operator in the Northwest area, to Frontier Communications Corporation (“Frontier”), a Consortium was formed to consolidate resources and effectively perform due diligence as required by federal law. The Consortium is comprised of Snohomish County and the Cities of Everett, Edmonds, Marysville, Bothell, Mountlake Terrace, Kenmore, Mukilteo, Woodinville and the Town of Woodway (the “Consortium”). On June 1, 2009, Verizon filed the FCC Form 394, its Exhibits and related materials with the Consortium members. Federal law, pursuant to 47 U.S.C. §537 provides in part that a franchising authority shall have 120 days to act upon any request for approval of a sale or transfer that contains or is accompanied by such information as is required in accordance with FCC Regulations and by the franchising authority. 47 CFR §76.502 also provides certain timeframes in which local governments are required to raise substantive and procedural questions if they believe that the FCC Form 394 is not complete. Packet Page 214 of 339 3 With this legal and regulatory backdrop, the Consortium retained Ogden Murphy Wallace and River Oaks Communications Corporation (“River Oaks”) to represent it in this process. Peter Camp, the Executive Director of Snohomish County, was an integral part of this team as it worked on its process, responses, negotiations and related matters with respect to Verizon and Frontier. Initial Documents Provided by Verizon/Frontier Documents provided to the Consortium members included: FCC Form 394, Request For Consent To Transfer Control of Franchisee, Exhibit 1 with a Corporate Organizational Chart, Exhibit 2 with respect to Conditions of Service and Operations, Exhibit 3 with respect to Corporate Ownership, Directors and Officers, Exhibit 4 describing how Verizon Northwest Inc. would become a wholly owned subsidiary of Frontier Communications Corporation, Exhibit 5 with respect to other Litigation, Exhibit 6 regarding no Pledge of Stock, Exhibit 7 with respect to Frontier Financial Matters along with the 10-K of Frontier for the year ending December 31, 2008, Exhibit 8 with respect to Frontier’s Technical Qualifications and a Model Resolution whereby Verizon sought to have each local jurisdiction consent to the transfer of control. This transfer involves a publicly traded company acquiring a company held by a much larger company. As indicated by Frontier in Exhibit 7 in the submittal: “. . . the transaction . . . will reduce significantly the Company’s debt to EBITDA ratio. Currently, Frontier’s leverage is approximately 3.8 x EBITDA; after the transaction its leverage will be reduced to 2.6 x EBITDA. (EBITDA is earnings before interest, taxes, depreciation and amortization). The increased financial strength is expected to improve Frontier’s access to capital and lower its cost of capital, which will inure to the benefit of the franchisee and its customers.” Additionally, the submittal also contained the Distribution Agreement by and between Verizon Communications Inc. and New Communications Holdings Inc. dated as of May 13, 2009. Also included was the Agreement and Plan of Merger dated as of May 13, 2009 by and among Verizon Communications Inc., New Communications Holdings Inc. and Frontier Communications Corporation. Subsequently the Consortium also received Amendment No.1 to the Distribution Agreement and Amendment No.1 to the Agreement and Plan of Merger. Consortium’s Data Request #1, Data Request #2 and Request for Information Following the submittal of the FCC Form 394, Frontier and Verizon representatives met individually with the staff and elected officers of several of the Consortium members. Within 30 days of receipt of the FCC Form 394, the Washington Consortium prepared and submitted Data Request #1 and Data Request #2 to Verizon and Frontier. Copies of Data Request #1, Data Request #2 and the Request for Information Letter with its accompanying questions are attached to this Report. For purposes of brevity, we will not address the specifics and level of detail contained in those Requests for Information. Rather we will focus on salient issues and their current status. It is important to note that under federal law, the key issues are whether the transferee will have the Financial, Legal and Technical capability to own and operate the cable Packet Page 215 of 339 4 television systems. It was the position of the Consortium that the FCC Form 394 and Exhibits, as submitted, were incomplete and deficient. Furthermore, it was the view of the Consortium that, given that all necessary materials were not filed, the 120 day timeframe under Federal law had not commenced. If the 120 day timeframe had commenced, each jurisdiction would have been required to either approve or deny the transfer within 120 days, or the transfer would be deemed approved. The Consortium, Verizon and Frontier had significant disagreements as to whether the shot clock had been triggered. Legal Qualifications, Frontier’s Plans and Capabilities Following the transfer, Verizon Northwest Inc., the current franchisee, will continue to be the franchisee after the completion of the transfer to Frontier. However, given that Frontier will become the new controlling entity of Verizon Northwest Inc., it was essential that the Consortium members inquire about Frontier’s Legal Qualifications, plans and capabilities concerning: • the character qualifications of Frontier, • the cable holdings owned by Frontier, • the existing Service Area and Line Extension Policies, • Frontier’s planned Channel Capacity, System Design and Customer Service policies, and • the proposed Signal Carriage, including the Educational and Governmental Access Channels, Channel Allocation, and Community Access Programming. In addition, the Request for Information inquired about the planned employment practices, whether any franchise modifications were expected, and the financial impact of the transaction on Frontier. Customer Rates and Financing the Transaction Of importance to cable subscribers were questions as to whether Frontier planned to increase rates as a result of this transaction. Additionally, Member communities wanted to know whether Frontier would have the financial wherewithal to successfully operate the cable television systems. The responses from Verizon and Frontier were that Frontier does not plan to increase cable rates as a result of this transaction. It should be noted, however, that while this process was underway, Verizon increased its rates to subscribers. Given that this transaction involves the exchange of approximately $5.3 Billion in stock from Frontier to Verizon shareholders and the creation of approximately $3.3 Billion in debt, many questions arose as to whether Verizon Northwest Inc. would be able to continue as an ongoing entity. Much discussion has taken place to date regarding the financial issues. This includes a presentation that was made by David Whitehouse, the Treasurer of Frontier, in which he detailed that Frontier will be selling unsecured notes with a maximum cost of 9.5% in order to finance this transaction. His view is that the Capital Markets will be receptive to the offering based on a previous debt sale by Frontier of $600 Million to $700 Million in unsecured debt. More detail regarding the financial matters will be addressed below. Packet Page 216 of 339 5 In response to Data Request #1 and Data Request #2 along with narrative questions, Frontier indicated that it planned to close this transaction in April, 2010. They also indicated that they intend to honor the build-out requirements contained in each of the existing Franchises. While Frontier works with Dish Network in other regions, its view is that it wants to grow its wireline cable television business. It is the position of Frontier that its responses to the Request for Information including Data Request #1 and Data Request #2 are intended to be interpreted in conjunction with the Franchise Agreements. Also, it is important to note that consummation of the transaction is dependent upon approvals at the Federal Regulatory level and from several States as well. Frontier’s Prior Ownership of Cable Systems In the past, Frontier has previously owned some smaller cable systems ranging in size from 255 customers to 2,728 customers. Most of these systems were either sold or discontinued. It is Frontier’s position that by retaining many of the Verizon Northwest personnel and bringing in people with other cable television operating experience, it has the ability to successfully manage and operate the cable television systems in the Consortium jurisdictions. Frontier has said that it does not have post-closing plans to sell any of the cable systems in the Washington member jurisdictions. Governmental and Educational Access Channels and Franchise Fees With respect to the Educational and Governmental Access Channels, Frontier has stated that the Franchise commitments and obligations will continue to be met. This would include retention of the existing Educational and Governmental Access Channels. With respect to payments of Franchise Fees, Frontier has stated that it will use the same basis for calculation of Gross Revenues called for in the Franchises and the methodology of the computations will not change. Build-Out of Verizon’s Cable Systems The issue of the system build-out was of concern to the local governments. Thus, a meeting occurred in which the build-out for each community was addressed. The range of the build-out completed varies from more than 1/3 to more than 3/4 complete. The following is a break-down by jurisdiction of the approximate build-out completion: • Snohomish County: More than three quarters complete • City of Everett: Approximately two thirds complete • City of Edmonds: More than three quarters complete • City of Marysville: More than a third complete • City of Bothell: Almost three quarters complete • City of Mountlake Terrace: More than three quarters complete • City of Kenmore: Almost half complete • City of Mukilteo: Almost half complete • City of Woodinville: More than half complete • Town of Woodway: More than three quarters complete Packet Page 217 of 339 6 Data Request #3, Standstill Agreement and Reimbursement to the Consortium Members In August, the Consortium, dissatisfied with the original responses to its Data Requests, sent Verizon and Frontier Data Request #3. A copy of Data Request #3 is attached to this Report. In order to prevent the 120 days from hampering the Consortium members’ decisions, each member of the Consortium, Verizon and Frontier entered into a Standstill Agreement whereby the date for approval or denial was extended until November 30, 2009. Also during this time and as a continuation of issues raised in June 2009, the Consortium continued to seek reimbursement from Verizon and Frontier for costs and expenses incurred in connection with this transaction. When the Franchises were negotiated between Verizon Northwest Inc. and each of the Consortium members, Verizon stressed that it was committed to providing cable service to the communities for the long term. It was in this spirit that the Consortium members and Verizon worked collaboratively to create Franchises that would best ensure the highest quality service for the citizens. At the time the proposed transfer was announced, Verizon had held many of the Franchises for about 10 months. Verizon and Frontier through Verizon’s attorney have committed to reimbursing the Consortium members for a significant portion of the members’ costs and expenses. A letter of intent from Verizon will be provided shortly by Verizon. In Data Request #3, more inquiry was made into the Legal, Technical and Financial qualifications of Frontier. Questions were again asked as to whether rates would be increased. Frontier responded by saying that it cannot guarantee that rates will not increase. However, in one of the meetings, the Frontier representative said there are no plans to raise rates because of this transaction. Technical Capabilities In a September meeting regarding Frontier’s technical capabilities, Frontier indicated that it was going to use another method to transport its signals from Florida to Washington State than originally presented. The Video Transport Plan includes utilizing space at a facility in Florida, then sending the signal to Bloomington, Illinois, operating a transport network from Bloomington, Illinois to Ft. Wayne, Indiana and then transporting programming to Oregon and Washington. Frontier has stated that this network does not involve deploying significant new fiber; rather, it involves leasing existing transport capacity from third party providers and configuring that network by installing off-the-shelf equipment so it can transport the video signals. Presentations in September by Michael Golob, the Head Engineer for Frontier, to Consortiums in Washington and Oregon addressed these matters. Customer Service Frontier espouses a customer first and peace-of-mind culture for its service offering that empowers its representatives to offer its customers an array of promotions and packages so that its customers are satisfied with the services requested. Frontier empowers local supervisors and General Managers so that if a customer is unhappy with his or her current bundle of services, they have the authority to resolve the issue to the customer’s satisfaction. The names of Frontier’s General Managers and Regional Managers are listed on Frontier’s website and in telephone directories should customers need immediate access and additional assistance. Packet Page 218 of 339 7 Frontier has indicated that it plans to hire General Managers and is committed to “extending its local engagement model to newly acquired properties in Washington”. Under this model, Frontier will appoint General Managers with responsibility and authority for operations, including profit and loss, installation and maintenance, responses to customer issues, charitable contributions and coordination with local government officials. Frontier indicated that it expects to appoint multiple General Managers in Washington, but did not state in which cities they would be located. With respect to Customer Service, Frontier is retaining the Call Center and Customer Dispatch Center in Everett, along with the Verizon Customer Service personnel. Frontier prides itself on its Customer Service in the telecommunications business. Since there will be cable television, telephone and internet components of their business, their financials are predicated upon customer retention and growth in these areas. To the extent there is attrition, Frontier has indicated that it will hire additional personnel to handle Customer Service. Programming With respect to programming matters, Frontier is in the process of securing content agreements. It has teams of people involved in negotiations in New York and Los Angeles with two content aggregators – either one of which could provide up to 90% of Verizon’s existing content. Frontier has also retained the well-known Los Angeles based law firm of Latham and Watkins to assist it in programming acquisition and negotiations. Financial Risks While Frontier is confident of the financial and operational success of this transaction, there are risks associated with it. In response to Data Request #3, Frontier provided Verizon Northwest Inc.’s Financial Statements for the years ended 2005, 2006, 2007, 2008 and the first and second quarters of 2009. In summary, based upon information provided by Verizon and Frontier, Verizon Northwest Inc. will have approximately $2.18 Billion in assets, $930 Million in revenue per year and about $116 Million in net income for 2009 on an annualized basis. There is no way to know or predict whether this transaction will work from a financial standpoint because of the current state of the economy (the recession) and significant competition from Comcast, other telephone providers and DBS providers (DirecTV and EchoStar) are all variables that cannot be quantified. Additionally, there have been instances of other financial issues in Hawaii and elsewhere involving Verizon transfers to another company or companies that raise questions as well. In the context of an $8.6 Billion transaction, there is a possibility that Frontier and Verizon Northwest Inc. could cease or scale back doing business at some point in the future. The local governments cannot require them to stay in the cable television business, and it is up to Frontier’s management to retain customers and grow the business. Additionally, it appears that the Transport Agreements will not be for the length of the Franchises. Further, Programming Content Agreements could lapse or not be renewed once they Packet Page 219 of 339 8 are initially agreed upon between Frontier and the NCTC, Frontier and NRTC or Frontier and direct providers of video programming. The Verizon/Frontier response to Data Request #3 contained significant narrative and 11 Attachments which were several hundred pages in length. Those documents still presented questions for the Consortium as to whether this proposed transaction will be viable from a financial and technical standpoint. Frontier believes that by completing this transaction, synergies will result in cost savings of approximately $500 Million which, according to them, represents more than 20% of the cash operating expenses of Verizon’s separate telephone operations in 2008. Projections with respect to Revenues, Debt Service, Expenses and Capital Expenditures were requested for the next three years. The response was that the requested projections do not exist and the financials reflect a combination of cable, phone and internet businesses. Without those projections, it is not possible to test the assumptions for this transaction to determine if they are reasonable or more or less favorable than could be reasonably anticipated. Based on information provided, the combined company of Frontier and Verizon Northwest Inc. will have projected revenues of approximately $6.5 Billion as compared to the $2.2 Billion for Frontier on a stand-alone basis. Frontier has stated that the EBITDA ratio of the combined company will be less than that for Frontier presently, and combined with other actions detailed in the S-4, Frontier has stated that it anticipates that these factors will allow it to achieve an investment grade credit rating after the transaction. Frontier hopes to increase Broadband Revenue per customer as it bundles voice, video and data products tailored to customers’ needs. Its view is that the FiOS properties being acquired are an important part of this strategy because they are state-of-the-art in terms of video product offerings. By being actively involved in the community and empowering local managers with their interaction with subscribers, Frontier hopes to use its local engagement model to increase customer loyalty, which would help with both customer retention and gaining new customers. Frontier does not plan to have to draw on its $250 Million Revolving Credit Facility to finance this transaction. It plans to maintain at least $100 Million in cash at all times. With the “back-up liquidity” provided by the Revolving Credit Facility, it anticipates having access to funds on hand if there were to be unanticipated or unforeseen events. While the financing commitments will not be in place before November 30th, Frontier will not be able to close this transaction in the absence of ultimately obtaining them. Frontier anticipates that potential investors could include commercial banks, institutional loan investors and institutional fixed income bond investors. In order to close this transaction, Frontier wants to complete the $3.3 Billion financing at a maximum cost of 9.5%. Their preference is to secure financing entirely with senior unsecured notes. It is their belief that equity and corporate bond valuations are improving and that cash stockpiles held by investors could be reinvested and economic data indicates to investors that there is light at the end of the tunnel. Obviously, every person and entity will have their own opinion and risk tolerance, and there is no certainty as to how this will all play out from a financial standpoint. Packet Page 220 of 339 9 Thus, in order to close this transaction, Frontier will need to have financing in place. Similarly, it could be reasonably anticipated that Frontier will need to have Transport Agreements, Network Lease Agreements and Programming Agreements in place acceptable to Frontier in order to have viability in terms of acquiring Verizon Northwest Inc. and operating the cable systems. Conclusion Under Federal law, the members of the Consortium have a duty from a due diligence standpoint to examine this transaction from a Financial, Legal and Technical standpoint and ultimately approve or deny this transfer of control based on these criteria. With respect to being legally qualified, both Verizon Northwest Inc. and Frontier appear to meet this standard. In its response to Data Request #1 and Data Request #2, Verizon and Frontier indicated that the proposed ownership structure complies with any and all State and Federal restrictions regarding ownership of cable communications systems. Further, the transferee is a U.S. citizen and Verizon Northwest Inc. is qualified to do business in Washington and will remain qualified after the closing of the transaction. Verizon and Frontier are seeking regulatory approvals with the Federal Communications Commission, the Department of Justice and nine states including Washington. According to Verizon Northwest Inc., they currently hold all necessary licenses from the FCC to operate the cable systems. With respect to the character qualifications of Frontier, Frontier has never been convicted in any criminal proceeding involving violations of FCC Regulations or the Communications Act of 1934, as amended. By consenting to the transfer of control, local governments are not opining as to whether Frontier will ultimately be successful from a Financial, Technical or business standpoint. Similarly, River Oaks is not expressing an opinion as to whether Verizon Northwest Inc. or Frontier will be successful from a Technical, Financial or Operations standpoint. Competition for retention and customer growth in the broadband market among cable television, telephony and other providers is significant. Other business risks exist including handling the debt load, reductions in telephone revenues and the costs inherent in deploying and maintaining broadband systems. This could be a positive acquisition for Frontier or it could result in a situation where some day in the future, Verizon Northwest Inc. and/or Frontier scale back or cease doing business as a cable television provider in one or more of the jurisdictions that comprise the Consortium. However, given the totality of the information presented and reviewed, River Oaks recommends that consent to the transfer of control be given by each member of the Consortium subject to a mutually acceptable Transfer Resolution or Ordinance. After a process that has spanned almost five months, extensive production of information and a diligent and thorough review of the Financial, Legal and Technical qualifications of the transferee, River Oaks believes that Frontier meets the criteria of being Financially, Legally and Technically qualified per the FCC Form 394, related materials and supplemental information to own and operate the cable systems in the Member Communities (via transfer of control of Verizon Northwest Inc. to Frontier Communications Corporation). While there are no guarantees as to Verizon Northwest Inc.’s or Frontier’s post-closing Operational, Financial and Technical viability, it is the responsibility of Frontier Communications Corporation and Verizon Northwest Inc. to make this transfer of control and acquisition work from a business, Technical, Financial and Customer standpoint. Packet Page 221 of 339 Template ORDINANCE NO. AN ORDINANCE OF THE CITY OF __________, WASHINGTON, APPROVING TRANSFER OF CONTROL OF THE FRANCHISEE (VERIZON NORTHWEST INC.) FROM VERIZON COMMUNICATIONS INC. TO FRONTIER COMMUNICATIONS CORPORATION WITH CONDITIONS AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of _____________ has granted a cable television franchise (“Franchise”) to Verizon Northwest Inc. (“Franchisee”) which is an indirect wholly owned subsidiary of Verizon Communications Inc. (“Verizon”); and WHEREAS, Verizon has entered into an agreement with Frontier Communications Corporation (“Frontier”) to effectuate a transfer of control of Franchisee from Verizon to Frontier (“Transfer”); and WHEREAS, upon completion of the Transfer, Franchisee will become an indirect wholly owned subsidiary of Frontier and, as a result, control of the Franchisee will be transferred from Verizon to Frontier; and WHEREAS, following the Transfer, Franchisee will continue to hold and be responsible for the performance of the Franchise; and WHEREAS, Franchisee has requested that the City consent to the Transfer and, in accordance with the requirements of the Franchise and federal law, Verizon has filed an FCC Form 394 together with Exhibits and related materials (all hereinafter collectively the “Application”) with the City; and WHEREAS, to evaluate Franchisee’s request, the City has participated in a Consortium of jurisdictions including Snohomish County, the cities of Bothell, Edmonds, {ERZ746656.DOC;3\13060.080001\ }1 Packet Page 222 of 339 Everett, Kenmore, Marysville, Mountlake Terrace, Mukilteo, Woodinville and the Town of Woodway (the “Consortium”); and WHEREAS, the City and the Consortium examined the legal, financial and technical qualifications of Frontier in order to consider and act upon the Transfer request and considered the comments of interested parties; and WHEREAS, the City has relied upon the Application and supplemental written information provided by Frontier and Verizon; and WHEREAS, on ____________, 2009, the City Council held a public meeting to review the Transfer request [if applicable]; and WHEREAS, the City is willing to consent to the Transfer, subject to the closing of the Transfer between Verizon and Frontier and the appropriate approvals by the Washington State Utilities and Transportation Commission and federal regulatory entities; and WHEREAS, Franchisee has agreed to continue to unconditionally accept the terms of the existing Franchise and to comply with any other agreements existing between the Franchisee and the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ____________ DO ORDAIN AS FOLLOWS: Section 1. The City hereby consents to the Transfer in accordance with the terms of applicable law, subject to and contingent upon the following conditions: a. In all respects and without exception, Franchisee agrees to continue to abide by all terms of the existing Franchise and acknowledges that the transfer of control will not affect, diminish, impair or supersede the binding nature of the Franchise and any other valid ordinances, resolutions, and agreements applicable to the operation of the cable {ERZ746656.DOC;3\13060.080001\ }2 Packet Page 223 of 339 system in the City and Franchisee shall continue to meet its obligations under the Franchise. Franchisee agrees that subject to the Franchise, that Franchisee shall comply with all lawful and applicable provisions related to cable service of ______________ Municipal Code Chapter ______, as amended, and all related applicable federal and state laws, and lawful orders, contracts, agreements, commitments, side letters [if applicable], Franchise amendments and regulatory actions. b. The City’s consent to the transfer of control shall not be construed to constitute a waiver or release of any rights the City may have now or in the future under federal, state or local law, the Franchise, or any separate written agreements with the Franchisee. Franchisee shall remain responsible for any and all Franchise requirements (including but not limited to payment of Franchise fees and other amounts due under the Franchise, and indemnification of the City as provided in the Franchise) and non-compliance issues under the Franchise or any obligation that may now exist or may later be discovered to have existed during the term of the Franchise, even if prior to the closing of this Transfer. c. The Transfer between Frontier and Verizon shall be substantially and materially consistent with the Application and the supplemental information provided by Frontier and Verizon through the request for information process undertaken by the City and the Consortium. Section 2. In the event that the Transfer which is the subject of this ordinance does not close for any reason; or in the event approval is not granted by the Washington State Utilities and Transportation Commission and appropriate federal regulatory entities, or in the event that the Transfer closes on terms substantially or materially different from the terms described in the Application and supplemental written information provided by Frontier and {ERZ746656.DOC;3\13060.080001\ }3 Packet Page 224 of 339 Verizon that is relied upon by the City; or Franchisee does not accept each and every condition of the transfer of control required of it as set forth in this ordinance; then the consent provided for herein shall be null and void, and the City shall be deemed to have disapproved the transfer of control under the Franchise and federal law, and all remedies under the Franchise and applicable laws shall be available to the City. In the event the Transfer does not close before January 2012, Verizon and Frontier will provide notice of that event to the City and an update on the reasons for such a delay in closing or notice of the termination of the Transfer. Section 3. By consenting to the transfer of control, the City does not waive or release any rights of the City in and to the streets as provided by state law and the _________Municipal Code, nor does the City waive or release any claim or issue of non- compliance it may have, known or unknown, now or in the future, against the Franchisee or any successor in interest to the Franchisee. Section 4. The City shall not amend, revoke or otherwise alter this Ordinance without providing reasonable prior notice to the Franchisee. Section 5. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 6. This ordinance shall take effect and be fully in force five (5) days after publication of the attached approved summary thereof consisting of the title. {ERZ746656.DOC;3\13060.080001\ }4 Packet Page 225 of 339 PASSED by the Council of the City of ________ this day of _____, 2009. APPROVED by the Mayor of the City of _______ this ____ day of _____, 2009. CITY OF _______________ MAYOR ATTEST/AUTHENTICATED CITY CLERK APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: FILED WITH THE CITY CLERK: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. {ERZ746656.DOC;3\13060.080001\ }5 Packet Page 226 of 339 {ERZ746656.DOC;3\13060.080001\ }6 SUMMARY OF ORDINANCE NO.________ of the City of ___________, Washington On , 2009, the City Council of the City of ____________, Washington, approved Ordinance No. , the main points of which are summarized by its title as follows: AN ORDINANCE OF THE CITY OF __________, WASHINGTON, APPROVING TRANSFER OF CONTROL OF THE FRANCHISEE (VERIZON NORTHWEST INC.) FROM VERIZON COMMUNICATIONS INC. TO FRONTIER COMMUNICATIONS CORPORATION WITH CONDITIONS AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be mailed upon request. APPROVED by the City Council at their meeting of , 2009. CITY CLERK Packet Page 227 of 339 AM-2572 8. City of Edmonds Website - City Council and Council Member Web Pages Edmonds City Council Meeting Date:11/02/2009 Submitted By:Stephen Clifton Time:20 Minutes Department:Community Services Type:Action Review Committee: Committee Action: Information Subject Title City of Edmonds Website - City Council Web Pages. Recommendation from Mayor and Staff When considering the kind of information the City Council wishes to place on City Council and Council member web pages, the Cities of Bellevue and Shoreline provide policies/guidance which would serve the City of Edmonds well, if adopted. Until such time as City staff create a website standards or coordinating committee and further examine policies as they relate to City Council and Council member web pages, the following interim measures are proposed: Content: “All content on the city's web site will be sponsored or co-sponsored by the city or directly linked to the city’s policy objectives or departmental activities. Content will accurately reflect City Council and management policy positions. Political advocacy by individuals or interest groups, including current and former elected officials, is not appropriate material for the City of Edmonds web site.” Links: “Types of sites to which the city does not provide links are: • Candidate sites and sites advocating positions on ballot propositions (See “Fair Campaign Practices” section below) • Individual personal homepages” Fair Campaign Practices: “To avoid the appearance of endorsement of political content, links will not be made to sites that are associated with, sponsored by, or serve a candidate for elected office, any political party or organization supporting or seeking to defeat any candidate for elective office, or any ballot proposal. Links to factual information prepared by the city or other public organizations--such as the King County Voters’ Pamphlet, Municipal League, and League of Women Voters--may be provided as public information.” When considering the kind of information the City Council wishes to place more specifically on City Council member web pages, using an Option 1 format would provide the most consistent information to web users. This option could include the following on each City Council member web page: • City Council name and position number Packet Page 228 of 339 • Contact information • Year elected to the City Council • Number of terms served • Current Council committees and appointments • Former Council assignments? • Regional Representation • Community Service • Employment • Education • Personal factual biographical information (this could include birthplace, marital status, length of residency, children, etc.) If the City Council wishes to expand upon Option 1, then Option 2 could include the above information in addition to general goals of City Council members and address pending issues of note within the Edmonds community. Previous Council Action The City of Edmonds currently uses an access and linkage policy discussed during the 2002 City Council retreat. While the existing policy does not contain specific guidance on what can be placed on the City Council web page or Council members’ web pages, it does provide clarification that the City of Edmonds does not provide web site hosting for the general public, but does provide internet links to the web sites of designated government, non-profit, civic and local organizations that have a recognized relationship with the City of Edmonds. Narrative See attached October 29, 2009 Staff Report. Fiscal Impact Attachments Link: October 29, 2009 Staff Report Link: Attachment 1 - City of Edmonds Council Web Pages Link: Attachment 2 - September 3, 2009 Memorandum from Scott Snyder Link: Attachment 3 - Examples of City Council Web Pages from Puget Sound Cities Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/29/2009 03:21 PM APRV 2 Mayor Gary Haakenson 10/29/2009 03:22 PM APRV 3 Final Approval Sandy Chase 10/30/2009 07:43 AM APRV Form Started By: Stephen Clifton  Started On: 10/27/2009 03:53 PM Final Approval Date: 10/30/2009 Packet Page 229 of 339 City of Edmonds Community Services Department Economic Development Department Date: October 29, 2009 To: Mayor Haakenson and Edmonds City Council From: Stephen Clifton, AICP Community Services and Economic Development Director Subject: City of Edmonds Website - City Council and Council Member Web Pages Background Over the past several months, City staff have been updating City of Edmonds website web pages in an attempt to provide more effective and useful information to website visitors. Although the City does not employ a Webmaster, the City does utilize the services of a contractor to assist with website maintenance. As such, the responsibility for updating web pages and formatting rest with existing City staff. Website development is ever evolving and is a product of numerous contributions by individuals throughout the City and increasing the accessibility of information contained within the City’s website is a primary goal of City Administration. At the request of Council President Wilson, City Council web pages have been an area where City staff have focused our efforts. As such, visitors to the City’s website can now find an updated City Council web page http://www.ci.edmonds.wa.us/cityCouncil.stm. On this web page, visitors can find information about the Council’s adopted 2009 sustainability agenda, meeting schedule, general contact information, and associated web links to individual Council member web pages (Attachment 1). As stated in Scott Snyder’s September 3, 2009 memorandum to the City Council, given the flurry of e-mails recently regarding the website (City Council web pages), and the indication that the City Council wishes to review the use of Council biographical material in light of these e-mails, he prepared comments for consideration by the City Council (see Attachment 2). According to the memorandum, the Council has a number of options with regard to the website. These include: 1) listing names, dates, places and basic factual biographical information with no statements of philosophy or references to pending legislative issues, 2) permit each Councilmember to state his or her general philosophy and address pending issues of note in the Edmonds community, and/or 3) a limited forum approach for Council consideration. This approach would place the photographs and voters’ pamphlet information on the City website to provide the public with information relating to the candidates for public office and other issues on the Edmonds ballot. A link could be provided to each {ERZ706668.DOC;1/00006.080057/}City of Edmonds  Community Services and Economic Development Packet Page 230 of 339 candidate’s website where additional information could be obtained. This would provide information in a neutral fashion to Edmonds voters in a controlled format without opening the City’s website as an open public forum. In a September 22, 2009, Washington State Public Disclosure Commission decision, the Public Disclosure Commission stated the RCW 42.17.130 does not prohibit elected officials from communicating with the public concerning the issues they are working on and their goals while in office. It is important, however, that this type of communication not be used to campaign for re-election, and it would be prudent to establish standards for what is expected on a biography page of the City’s website. City Council and City Council member web pages policies The City of Edmonds does not currently have policies specifically related to the content of City Council or Council member web pages. As such, City of Edmonds staff contacted many cities to request information about website policies and viewed the websites of these cities to see what is actually on their individual City Council member web pages. City Council web pages As noted above, City of Edmonds staff contacted several cities to request policies related to posting information on City Council web pages. We received responses from the cities of Bellevue, Kent, Federal Way, Everett, Kirkland, Lynnwood, Mukilteo, Redmond, Renton and Shoreline. Only the Cities of Bellevue and Shoreline contained references related to City Council information; these include the following: Bellevue: Content: “All content on the city's web site will be sponsored or co-sponsored by the city or directly linked to the city’s policy objectives or departmental activities. Content will accurately reflect City Council and management policy positions. Political advocacy by individuals or interest groups, including current and former elected officials, is not appropriate material for the City of Bellevue web site.” Links: “Types of sites to which the city does not provide links are:  Candidate sites and sites advocating positions on ballot propositions (See “Fair Campaign Practices” section below)  Individual personal homepages” Fair Campaign Practices: “To avoid the appearance of endorsement of political content, links will not be made to sites that are associated with, sponsored by, or serve a candidate for elected office, any political party or organization supporting or seeking to defeat any candidate for elective office, or any ballot proposal. Links to factual information prepared by the city or other public organizations--such as the King County Voters’ Pamphlet, Municipal League, and League of Women Voters--may be provided as public information.” Shoreline: Links: “The City does not provide links to:  Sites associated with, sponsored by or serving a candidate for elected office  Sites supporting, endorsing or seeking to defeat any candidate for elective office, or any ballot proposal  Individual personal homepages” City Council member web pages {ERZ706668.DOC;1/00006.080057/}2 Packet Page 231 of 339 City staff have also compared existing Edmonds City Council member web pages with examples from ten cities within the Puget Sound region, i.e., Bellevue, Kent, Federal Way, Everett, Kirkland, Lynnwood, Mukilteo, Redmond, Renton and Shoreline. See Attachment 3 for examples of these web pages. Based on our review, City of Edmonds Council member web pages align most closely with Option 1 above, i.e., names, dates, committee assignments, places and basic factual biographical information with limited philosophical narrative or references to pending legislative issues. This is also the case with eight of the ten cities reviewed. The Cities of Renton and Lynnwood included statements that could, to a minor extent, be interpreted to relate to both Options 1 and 2. None of the ten cities provide information related to Option 3. City of Edmonds website access and linkage policy The City of Edmonds currently uses an access and linkage policy discussed during the 2002 City Council retreat. While the existing policy does not contain specific guidance on what can be placed on the City Council or Council members’ web pages, it does provide clarification that the City of Edmonds does not provide web site hosting for the general public, but does provide internet links to the web sites of designated government, non- profit, civic and local organizations that have a recognized relationship with the City of Edmonds. City Administration Recommendation As mentioned earlier, City staff are in the process of updating City website web pages in an attempt to provide more effective and useful information to website visitors. City staff is also discussing creating website standards or coordinating committee to create, maintain, and monitor information placed on the City’s website. As such, City staff expects to address this issue further when a committee is formed. When considering the kind of information the City Council wishes to place on City Council and Council member web pages, the Cities of Bellevue and Shoreline provide policies/guidance which would serve the City of Edmonds well, if adopted. Until such time as City staff create a website standards or coordinating committee and further examine policies as they relate to City Council and Council member web pages, the following interim measures are proposed: Content: “All content on the city's web site will be sponsored or co-sponsored by the city or directly linked to the city’s policy objectives or departmental activities. Content will accurately reflect City Council and management policy positions. Political advocacy by individuals or interest groups, including current and former elected officials, is not appropriate material for the City of Edmonds web site.” Links: “Types of sites to which the city does not provide links are:  Candidate sites and sites advocating positions on ballot propositions (See “Fair Campaign Practices” section below)  Individual personal homepages” Fair Campaign Practices: “To avoid the appearance of endorsement of political content, links will not be made to sites that are associated with, sponsored by, or serve a candidate for elected office, any political party or organization supporting or seeking to {ERZ706668.DOC;1/00006.080057/}3 Packet Page 232 of 339 {ERZ706668.DOC;1/00006.080057/}4 defeat any candidate for elective office, or any ballot proposal. Links to factual information prepared by the city or other public organizations--such as the King County Voters’ Pamphlet, Municipal League, and League of Women Voters--may be provided as public information.” When considering the kind of information the City Council wishes to place more specifically on City Council member web pages, using an Option 1 format would provide the most consistent information to web users. This option could include the following on each City Council member web page:  City Council name and position number  Contact information  Year elected to the City Council  Number of terms served  Current Council committees and appointments  Former Council assignments?  Regional Representation  Community Service  Employment  Education  Personal factual biographical information (this could include birthplace, marital status, length of residency, children, etc.) If the City Council wishes to expand upon Option 1, then Option 2 could include the above information in addition to general goals of City Council members and address pending issues of note within the Edmonds community. Packet Page 233 of 339 Packet Page 234 of 339 Packet Page 235 of 339 Packet Page 236 of 339 Packet Page 237 of 339 Packet Page 238 of 339 Packet Page 239 of 339 Packet Page 240 of 339 Packet Page 241 of 339 A Member of the International Lawyers Network with independent member law firms worldwide 1601 Fifth Avenue, Suite 2100  Seattle, WA 98101-1686  206.447.7000  Fax: 206.447.0215 Web: www.omwlaw.com {WSS740575.DOC;1\00006.900000\ } MEMORANDUM DATE: September 3, 2009 TO: Edmonds City Council City of Edmonds CC: Mayor Gary Haakenson Stephen Clifton, Community Services Director City of Edmonds FROM: W. Scott Snyder, Office of the City Attorney RE: Website Given the flurry recently regarding the website, and the indication that the City Council wishes to review the use of Council biographical material, I offer these comments. The staff’s approach (that is, the approach of Mr. Clifton and myself) is an attempt to follow the philosophy established by the Council when it allowed the use of public facilities for community meeting meetings by a Councilmember who is in a campaign for reelection. In its decision, the Council chose not to prohibit the use of facilities for this purpose, but has emphasized as I have suggested, the need to avoid any reference to campaigns, distribution of campaign materials or to solicit invitation of campaign contributions. In a nutshell as my recent e-mail indicates, it is my opinion that a City Councilmember’s first amendment right and obligation in a representative form of government to communicate with and listen to citizens is a normal and ordinary part of the office of being an elected official. The Council has a number of options with regard to the website. Among those that Mr. Clifton and I have discussed are: 1. The Redmond Approach. Redmond lists names, dates, places and basic factual biographical information. There are no statements of philosophy or references to pending legislative issues. Packet Page 242 of 339 {WSS740575.DOC;1\00006.900000\ } 2. Communication with Constituents. The second approach would permit each Councilmember to state his or her general philosophy and address pending issues of note in the Edmonds community. As with the Council’s decision on the use of public facilities by Councilmembers during an election season, this approach is defensible but comes very close to the line drawn by Washington statute and PDC rule. It depends on each Councilmember’s communication avoiding any reference to the campaign including but not limited to references to an opponent or any solicitation for campaign funds. 3. Limited Public Forum. As I have expressed in the past, opening the comment section or the website to campaigning presents a myriad of problems, not least of which is placing Councilmembers and those trying to monitor the comments at a disadvantage. As the City Council is aware, the individual Councilmembers can only express opinions regarding ballot issues, whether other ballot measures through a very strict format involving notice, formal action of the Council meeting and the passage of a resolution after comment for both sides. Opening the mike or the website to campaigning raises the specter that individuals may make comments to which the Council cannot respond. Several weeks ago, this problem arose when candidates included Councilmembers’ City website addresses in broadcast e-mails and began a debate to which the Councilmembers could not legally respond from City e-mail. Mr. Clifton and I have discussed a limited forum approach for Council consideration. This approach would place the photographs and voters’ pamphlet information on the City website to provide the public with information relating to the candidates for public office and other issues on the Edmonds ballot. A link could be provided to each candidate’s website where additional information could be obtained. This would provide information in a neutral fashion to Edmonds voters in a controlled format without opening the City’s website as an open public forum. I have a commitment on September 15 and cannot attend the Council meeting, but will ensure that Mr. Clifton and Mr. Park will be available to answer questions and draft any follow up that the Council directs. 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Review of Construction Easement Reserved by Ordinance 3729 Edmonds City Council Meeting Date:11/02/2009 Submitted By:Sandy Chase Submitted For:Council President Wilson Time:20 Minutes Department:City Clerk's Office Type:Action Review Committee: Committee Action: Information Subject Title Review of construction easement reserved by Ordinance No. 3729. The easement involves the vacated right of way of a platted but unbuilt public alley lying between the 700 block of 8th Ave. N and 9th Ave. N and parallel to and north of Daley Street. The reserved construction easement is for the installation of a driveway and retaining wall on property lying north of the alley and east of 8th Ave. N. Recommendation from Mayor and Staff Previous Council Action On 06-24-08, the Council adopted Resolution 1178, setting a pubilc hearing on the alley vacation. On 07-22-08, a public hearing on the alley vacation was held, and the public hearing was continued. On 09-16-08, the continued public hearing on the alley vacation was held and the construction easement was voted on. 0n 03-17-09, the Council adopted Ordinance 3729 that vacated the alley and reserved the construction easement. Narrative Council President Wilson prepared the attached document titled “Narrative on Motion to Reconsider Ord 3729E” for a complete explanation of the proposed action. In addition, attached is a document titled "Timeline of the Theusen-Reidy Case" prepared by Mauri Moore (submitted by Council President Wilson). Fiscal Impact Attachments Link: Exhibit 1: Resolution 1178 - Setting a Public Hearing on the Alley Vacation Link: Exhibit 2: Excerpt of Council Minutes dated 06-24-08, 07-22-08, 09-16-08, 03-17-09 Packet Page 310 of 339 Link: Exhibit 3: Ordinance 3729 - Vacating the Alley and Reserving the Construction Easement Link: Exhibit 4: Narrative on Motion to Reconsider Ord 3729E Link: Exhibit 5: Timeline on Theusen-Reidy Case Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 10/30/2009 09:45 AM APRV 2 Mayor Gary Haakenson 10/30/2009 09:47 AM APRV 3 Final Approval Sandy Chase 10/30/2009 09:49 AM APRV Form Started By: Sandy Chase  Started On: 10/29/2009 12:39 PM Final Approval Date: 10/30/2009 Packet Page 311 of 339 Packet Page 312 of 339 Packet Page 313 of 339 Packet Page 314 of 339 Packet Page 315 of 339 EXCERPT FROM THE 06-24-08 CITY COUNCIL MINUTES 11. PROPOSED RESOLUTION TO INITIATE THE VACATION OF THE UNOPENED ALLEY RIGHT-OF-WAY LOCATED BETWEEN 8TH AVENUE NORTH AND 9TH AVENUE NORTH, NORTH OF DALEY STREET. Development Services Director Duane Bowman explained this was an unopened alley 7.5 feet in width that was dedicated as part of the original plat of the City. He noted alleys were typically 16 feet in width; he assumed it was anticipated the unplatted area to the north would dedicate the other half of the alley which did not occur. The City has no improvements in the alley. The residents asked to have the alley right-of-way vacated and requested the City initiate that action. The proposed resolution sets July 22 as the date for the required public hearing. Councilmember Wambolt commented he looked at the property, finding it useless and very steep. Councilmember Bernheim asked which residents requested the vacation, noting there were 12 adjacent properties. Mr. Bowman answered nearly all the property owners to the south as the property came from their properties as part of the original plat of Edmonds and the vacated right- of-way would be returned to those parcels. Mayor Haakenson advised the Council was scheduling the public hearing to hear from the property owners. Several property owners met with Councilmembers Wambolt and Olson and requested the City initiate the vacation. Mr. Bowman explained there were two ways to initiate a vacation, either by petition or the Council passes a resolution initiating the vacation. Councilmember Bernheim asked how many people asked to have the property vacated. Mr. Bowman stated five property owners on the south side requested the vacation. He noted these property owners were aware there were issues to be resolved with regard to access, etc. particularly at the east end of the alley. Councilmember Bernheim asked the disadvantage of the City not vacating the property. Mr. Bowman answered the City would continue to have an unopened 7.5 foot wide right-of-way that was of no use to the City due to the steep grade in the center. Councilmember Olson commented the City took property in the 1890s with the intent of installing an alley which never happened. Councilmember Wambolt pointed out Daley did not go through from 8th to 9th. City Attorney Bio Park commented vacating the property would return it to the tax rolls and would eliminate any liability associated with injury on the property due to the City’s negligence. COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER OLSON, TO APPROVE THE RESOLUTION NO. 1178. MOTION CARRIED UNANIMOUSLY. The resolution approved reads as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, INITIATING REVIEW OF VACATION OF A PORTION OF AN UNOPENED PUBLIC ALLEY LYING BETWEEN 8TH AVENUE NORTH AND 9TH AVENUE NORTH, PARALLEL TO AND NORTH OF DALEY STREET, AND SETTING A PUBLIC HEARING FOR JULY 22, 2008. Unopened Alley Right- of-Way Between 8th Ave N & 9th Ave N Res# 1178 Set Hearing re: Vacate Unopened Public Alley Packet Page 316 of 339 EXCERPT FROM THE 07-22-08 CITY COUNCIL MINUTES 6. PUBLIC HEARING ON THE PROPOSED VACATION OF THE UNOPENED ALLEY RIGHT-OF-WAY LOCATED BETWEEN 8TH AVENUE NORTH AND 9TH AVENUE NORTH, NORTH OF DALEY STREET. Development Services Director Duane Bowman questioned whether the Council had received all the materials that Eric Thuesen provided. Mayor Haakenson advised the Council had received a 40-page letter from Mr. Thuesen tonight. Mr. Bowman distributed additional information received this afternoon from Mr. Theusen. City Attorney Scott Snyder suggested proceeding with the hearing and if the Council deems the new material worthy of review, they could consider continuing the hearing. Mr. Bowman noted the Council also received a letter from Jim Wold. Councilmember Dawson advised the information she just received included correspondence with her husband’s law firm and she did not find it appropriate for her to participate if her husband’s law firm were potentially involved in litigation regarding this matter. She recused herself and left the room. Mr. Bowman recalled on June 24, 2008, the City Council passed Resolution No. 1178 initiating this vacation action. He displayed an aerial photograph and identified the property owned by Mr. Thuesen that was currently developed with a single family house and a small detached garage in the east corner. He also identified the 7.5 foot unopened alley right-of-way located north of Daley Street, between 8th Avenue North and 9th Avenue North, identifying the area where the alley was used for access as well as the Wold and Olson residences and 9th Avenue. He explained the Wolds had an easement across properties 847 and 853. He identified the portion of the alley to the west where the topography was very steep and displayed a topography map that identified the contours of the block between 8th and 9th. Mr. Bowman displayed a drawing of the 800 block of Daley Street prepared by Jim Wold that illustrated uses along the alley. The alley was created with the original plat of Edmonds and had never been used by the City. It was originally intended when the area to the north subdivided that the other half of the alley would be dedicated to the City which never happened. The alley had never been used with exception of the east portion. He noted the Wolds (third property on the southeast side of the alley) had a private easement across the other two properties on the southeast side of the alley, providing that property access from the alley as well as the easement. He identified the Olson property (on the northeast end of the alley) which had access to their garage from 9th Avenue. He identified the location of the new house on the Thuesen property and a garage in the southeast corner, advising Mr. Thuesen had preliminary subdivision approval to create two additional lots. Mr. Bowman relayed the criteria that the Council must consider for an alley vacation, a) the vacation is in the public interest, and b) no property will be denied direct access as a result of the vacation. He pointed out the Reidy’s primary vehicle access was via Daley. The recently approved short plat for the Thuesen property allows a lot in the center of his property. It was originally a two-lot subdivision; however, following a court case, Mr. Thuesen was allowed to reapply and he received approval for a three lot subdivision. He displayed the approved preliminary plat for the short subdivision of the Thuesen property, identifying the existing house, a center lot with access via an access easement to 8th Avenue and a third lot on the western end. He displayed the conceptual development plan reviewed as part of the short subdivision, identifying the existing home at the east end with a detached garage, the generalized location of Packet Page 317 of 339 the home on the center lot that did not utilize the 7.5 foot alley for its access, and the third house with access onto 8th. With regard to the first criteria, the vacation is in the public interest, Mr. Bowman advised the City had no planned or existing improvements in the alleyway. It would be in the public interest to vacate the right-of-way and return it to the tax rolls. Regarding the second criteria, no property will be denied access as a result of the vacation, he advised access was currently available to all properties. The most likely issue would be the Olsons access to their garage via the alley which he explained could be accomplished via an exchange of easement by the property owners to the south granting access over the existing alleyway. He concluded no property was deprived of direct access or uses the alley for access. With regard to compensation, staff did not recommend any compensation for the recommended right-of-way, it came from the properties to the south and vacating the unused right-of-way reduced the City’s liability for any of the existing unused conditions. Council President Plunkett asked whether there was a pending lawsuit. Mr. Bowman advised there was no lawsuit, only a threat of a lawsuit. City Attorney Scott Snyder clarified the Council was not giving the property away, the City would simply vacate its interest, the property goes where it goes by operation of the law. Title issues were not part of the Council’s role; the Council’s only considerations were whether the vacation was in the public interest and ensuring no one was denied direct access as a result of the vacation. Pointing out the materials Mr. Thuesen provided referenced legal action and a Councilmember chose not to participate due to potential legal action, Council President Plunkett was uncertain what legal activity surrounded this matter. Mr. Bowman explained the City was involved in a lawsuit with Mr. Thuesen during the subdivision of his property regarding the wetland area; Mr. Thuesen prevailed and the court decision allowed him to apply for the third lot on the property and fill the wetlands. The other issue was the Reidys have a small shed on the rear of their property that encroaches into the alleyway and a corner that projects onto Mr. Thuesen’s property. The City began an enforcement action to compel the Reidys to move their shed out of the City’s right-of-way. The Reidys chose to pursue the vacation request and prevailed in the Council initiating the vacation request. He attempted to get the Reidys and Mr. Thuesen to work out an agreement to rectify the situation; Mr. Thuesen would like to use the alley for a retaining wall to improve the access to his third lot; the Reidys want to preserve their shed. The parties were unable to reach an agreement and Mr. Thuesen was opposed to the alley vacation and the Reidys want to pursue the vacation to allow them to reclaim the property. Mr. Snyder explained the City may grant a temporary encroachment permit to use the public right-of-way; absent that permit the City had a right to compel removal of any object in the public right-of-way. The only way the shed could remain would be if the City vacated the right-of-way. Mayor Haakenson referred to Mr. Thuesen’s 40+ page document that states approval of any alley vacation will result in suit for damages from the petitioner against the City. Mr. Snyder trusted the Council to apply the criteria and he would defend a lawsuit if necessary. Councilmember Bernheim referenced Mr. Snyder’s comment that it was the duty of the City to compel the removal of the shed, pointing out to the east there were fences, landscaping and other structures in the right-of-way. Mr. Snyder acknowledged much of the unopened rights-of-way in the City were occupied by fences, landscaping and structures. The City acts on complaint; when a complaint was received, the City must investigate and take necessary action. Packet Page 318 of 339 Mayor Haakenson opened the public participation portion of the public hearing. He advised the Council had received a 40-page and a 10-page letter from Mr. Thuesen and a letter from Jim Wold. Laurie Niven, Edmonds, expressed her support for vacating the alley with no compensation to the City. Although she did not know everyone’s opinion with regard to the vacation, she urged that whatever the decision, there not be any divisiveness among the neighbors and that access to garages be maintained. Jim Wold, Edmonds, was uncertain whether the easement to his property from 9th Avenue was legally established. He explained the builder who built the five homes along Daley Street from 9th to 8th lived in the house he now owned. He assumed at that time the builder moved the fence line back of the two houses between his house and 9th Avenue North to provide access to his garage. In the late 1960’s the owner prior to the Olsons removed their original garage and built a garage on the back accessible only by the 7.5 foot right-of-way and the “easement” developed by the builder. Those two homes were the only ones using the right-of-way. When he moved in they removed the garage in the rear and replacing the pad with landscaping. He noted he still used the right-of-way and easement on occasion for transporting landscaping materials. He concluded the alleyway was not essential for him and he was in favor of the vacation. Ken Reidy, Edmonds, commented 118 years had passed and the City had not established any public use for the 7.5 foot unopened alley right-of-way between 8th and 9th and the City has no future plans for the right-of-way. He found it in the City’s best interest as well as the public’s best interest to vacate the right-of-way, pointing out public rights-of-way must be maintained by the City for the safety and convenience of the public. He was unaware of any City maintenance of the right-of-way; its unmaintained condition coupled with the steepness of the slope created an unnecessary liability for the City and managing a right-of-way was a burden to the City requiring additional administrative effort to monitor its status. The public would benefit from vacation of the right-of-way by the property being subject to property taxes. He noted in 1980 via ordinance 15 feet of the right-of-way was vacated. In 1993 using this vacation the prior owner of his home purchased the 15 foot section of the right-of-way. He concluded the alley right-of-way was not continuous to 8th as the first 15 feet were privately owned. He supported the vacation of the remaining 7.5 feet of unopened alley right-of-way. He noted the status of his shed was separate from the issue of vacation and assured the shed would be removed. Eric Thuesen, Edmonds, commented the issue was not the vacation of the entire alley but only the unused portion where the two arrows meet on Mr. Wold’s drawing; the other portion of the alley had been in use since 1956. He provided background on his property, explaining after purchasing the property in 2004, he applied for a short plat utilizing a portion of the alley for access; the final approved short plat shows use of the alley. In July 2007 a construction survey revealed the Reidy’s shed encroached onto the alley. He filed a complaint with the City against the encroachment due to his intent to utilize the alley. Engineering plans he received after receiving the short plat approval in July 2007 showed the use of the alley for access to the first lot. That was approved by the Engineering Department with the exception of an encroachment permit, needed to build a retaining wall in an alley. The retaining wall encroachment permit was not granted; the wall could not be constructed until an encroachment permit was finalized and issued for the structure encroaching into the alley. He referred to conversations in early July 2007 with the Reidys attorney and his request that the City pursue code enforcement to remove the shed. He filed an objection to the proposed vacation of the alley and referred to Section 20.70.040B that states the City cannot proceed with vacation if 50% or more of the property abutting the street or alley file written objection. He advised he had a vested interest due to the Packet Page 319 of 339 approved building permit that included alley access. He was opposed to the alley vacation, finding it a violation of his vested rights and 20.70.040B. Mr. Snyder commented in a vacation, the City could reserve easements and still vacate the property. He asked whether the Council reserving an easement for embankments or retaining walls would address his issue. Mr. Thuesen answered his problem was with Mr. Reidy’s shed which Mr. Reidy had elected not to remove. He noted the retaining wall would be used to support the land; the roadway would be adjacent to the retaining wall. Mr. Snyder concluded from Mr. Thuesen’s comments that a portion of his access road would be within the 7.5 foot alley right-of-way. Mr. Thuesen agreed, explaining because of the Reidy’s shed, he had to make adjustments to move the retaining wall out of the right-of-way. He objected to the vacation as it did not resolve the problem of the Reidy’s shed. Greg Olson, Edmonds, whose property was on the northeast corner of the alley, explained his objectives were to, 1) maintain access to his garage, 2) improve the safety and security of the alley, and 3) prevent any increase in traffic or parking in the alley. He noted their original garage was moved to the rear when their home was remodeled in 1967 and their sole access to the garage was via the alley. The previous owner granted a permanent easement to Mr. Thuesen on the north side of this property which provides access to the buildings on the 509 9th Avenue North property. He requested a permanent easement be granted on the alley right-of-way to retain access to his garage. He used the access on a daily basis and it was used occasionally by Mr. Wold; he wanted to prevent any further parking by the buildings to the west. He noted the fences on both sides of the alley were quite low and the owners at 853, 847 and 841 Daley as well as he were best equipped to ensure the safety and security of the alley. He expressed support for vacation of the alley. Forest Wold, Edmonds, urged the Council to favorably consider vacation of the right-of-way, commenting it made economic and public policy sense. Hearing no further public comment, Mayor Haakenson closed the public hearing. Council President Plunkett asked whether with some thought/time there would be a way to allow the retaining wall to be built and the right-of-way vacated in the future. Mr. Snyder requested this matter be continued to allow staff to consider the material submitted tonight and to compare the plat approvals to determine what was vested. If there are prescriptive rights, that was for the court to decide. He suggested the Council ask any questions and ensure the record accurately reflected what rights are vested under plat approvals. Councilmember Wilson commented the packet Council received on Friday did not include the 40-page letter Mr. Thuesen provided tonight. He agreed with Mr. Snyder’s suggestion to continue the matter to a later date to provide the Council and staff an opportunity to consider all the material. He asked about the comment that the Reidy property included the first 15-feet of the alley from 8th Avenue North. Mr. Bowman answered his research revealed there were some street and alley vacations done but it was not clear that the alley was vacated and the survey submitted by the Reidys did not show the alley as part of their property. The ordinance that did the original vacation on 8th Avenue and the ordinance that vacated the portion on the east side where the Reidy’s is located does not affirm in fact that 7.5 feet on the westerly portion of the alley was vacated. The east 15 feet of 8th Avenue was in fact vacated. Mr. Bowman referred to Council Resolution No. 474, dated August 19, 1980, that shows 100 feet plus 7.5 feet. Unfortunately the ordinance did not show this same drawing that vacated the east Packet Page 320 of 339 15 feet of 8th Avenue North and he requested an opportunity to research the matter further. He agreed the Council may need to continue the matter, noting some of the parties may not be able to attend a meeting until late August or early September. Mr. Snyder agreed with Mr. Thuesen that the code states the City shall not proceed with the vacation if the owners of 50% or more of the property abutting the street or alley or part thereof object. He recommended the record accurately reflect the abutting property ownership. Mr. Bowman disagreed with Mr. Thuesen’s assertion that only a portion of the alley was proposed to be vacated; the proposal was to vacate the entire alley between 8th and 9th Avenue. The neighbors have discussed establishing easements on the portion identified on Mr. Wold’s drawing as in use since 1956 (the east end of the alley). Mr. Snyder agreed a written staff opinion would be helpful. Mayor Haakenson encouraged the Council to ask any questions and staff would provide a report with answers to their questions at a later date. Following a brief discussion regarding scheduling and availability of property owners, Council President Plunkett agreed to schedule the matter as time was available on the agenda. Mr. Snyder suggested continuing the public hearing to allow the property owners to comment on staff’s response. Councilmember Wilson asked if this vacation arose due to the location of the Reidy’s shed. Mayor Haakenson explained the neighbors contacted him to discuss issues of access to their property. Staff and he cannot bring a vacation request to the Council; it must be generated by the Council. Councilmembers Wambolt and Olson met with the neighbors and proposed the vacation. He advised the Reidy’s shed was a separate issue. Mr. Bowman explained when a complaint was filed regarding the Reidy’s shed, the options were to remove the shed or vacate the right-of-way; a portion of the shed would be required to be removed even if the alley were vacated. Mayor Haakenson explained the neighbors on both sides of the east side end of the alley inquired about vacating the alley due to concern with access to their property and concerns with parking in the alley when houses were constructed to the west. Councilmember Wilson advised he would defer any further questions until staff provided a written report. Councilmember Bernheim commented Mr. Thuesen’s submission of materials was timely; he was entitled to present material at the hearing. For Councilmember Bernheim, Mr. Snyder explained the City owned a right-of-way easement and did not own the underlying fee. When the City vacated the easement, the property reverted to the owner of the underlying fee. In most cases it was to the middle of the roadway, however, when the entire dedication originally came from the same tract of land, it reverted to those properties. It would appear it would revert to the owners of the property in the original Town map. Councilmember Bernheim asked whether there was any basis for Mr. Thuesen’s assertion that he owned 50% of the property abutting the property to be vacated. Mr. Snyder wanted to ensure the record clarified the application and Mr. Thuesen’s abutting ownership. Councilmember Bernheim asked Mr. Snyder to research whether the middle lot in the subdivision would have direct access. Mr. Snyder noted another issue was vesting. Mayor Haakenson advised the hearing would be continued to a date as yet unknown. Mr. Bowman advised the hearing would be re-advertised and the property owners notified. Packet Page 321 of 339 EXCERPT FROM THE 09-16-08 CITY COUNCIL MINUTES 4. CONTINUED PUBLIC HEARING ON THE PROPOSED VACATION OF THE UNOPENED ALLEY RIGHT-OF-WAY LOCATED BETWEEN 8TH AVENUE NORTH AND 9TH AVENUE NORTH, NORTH OF DALEY STREET. Councilmember Dawson recused herself from this item as her husband’s law firm was involved in this matter. She advised she had not reviewed the materials in the Council packet. She left the dais and the room. Development Services Director Duane Bowman explained a public hearing was held by the Council on this matter on July 22 and continued to an unspecified date. The area proposed to be vacated is a 7½ foot alley that was platted as part of the old plat of the City of Edmonds that runs between 8th Avenue North and 9th Avenue North. He explained there were no public improvements in the alley. A portion of the alley has been used as access for the property at 503 9th and the property owner has used that along with an area on the back side of the parcels at the east end of the alley. He identified the property owned by Eric Thuesen that has preliminary approval for a three lot short subdivision. He identified an existing house on the Thuesen property and garage. He also identified the location of the Reidy property at 771 Daley Street. Mr. Bowman recalled at the July 22 hearing a great deal of information was submitted by Mr. Thuesen and several questions arose: 1. Mr. Thuesen alleged he had a “vested right” to utilize the alley in question for purposes of his previously-approved development project. Staff’s response was his proposed retaining wall in the alley right-of-way requires an encroachment permit which is a discretionary permit and is temporary in nature. In the subdivision context, the vested rights doctrine essentially 'freezes' the local land use and zoning regulatory framework in place and provides an element of certainty and stability for developers in planning their projects. The purpose of the doctrine is to protect applicants from after-the-fact zoning changes that could potentially undermine their development proposals. A developer's "vested rights" attach at the point where a fully complete subdivision application has been submitted to the City for processing. There are no "vested rights" accruing to Mr. Thuesen under these circumstances, particularly when the City has not approved a discretionary permit needed to complete the development proposal in question. 2. Mr. Thuesen states as the owner of 50% of the property which abuts the proposed vacation area and can legally terminate the vacation proceedings for that portion by formally objecting. Mr. Bowman explained Mr. Thuesen does not own 50% of the property abutting the alley right-of-way area for which vacation has been proposed and in fact only owns 37.9% of the abutting property. The proposal is to vacate the entire right-of-way between 8th and 9th, not only the portion on the west end. 3. Vacation of the alley would deprive access to a portion of Mr. Thuesen’s property in violation of applicable code standards. Staff response is that none of Mr. Thuesen's three lots depend upon the alley in any manner for access. Lot 3 enjoys direct, unobstructed access to 8th Avenue. The access route for Lot 2 (the center lot) according to the development plan would be accessed by a 15-foot access easement to 8th Avenue. Lot 1, the lot with the existing house and the detached garage, has an access easement to 9th Avenue. Mr. Thuesen can clearly develop his property without the use of the alley way as demonstrated in the preliminary development plan he submitted with his approved three lot short subdivision. Packet Page 322 of 339 4. Has the west 15 feet of the alleyway been vacated? In reviewing the past ordinances, it appears it may have been. However in further research, Mr. Bowman determined when the City considered vacating a portion of 8th Avenue and the east 15 feet of the alley, the property owner who predated the Reidys was not interested. That property owner later wanted the portion of 8th Avenue vacated and paid compensation for 110 feet x 15 feet, currently westerly 15 feet of the Reidy’s property. It is clear from the record that the previous owner paid for 15 feet x 110 feet, not the 7½ feet. He concluded the west 15 feet of the alley had not been vacated. Mr. Bowman advised additional information submitted by Mr. Thuesen was contained in the Council packet. Councilmember Wambolt asked why the Reidy’s street number began with 7 instead of an 8. Mr. Bowman answered it was a corner lot with access from Daley. Council President Plunkett read a statement from Mr. Thuesen “access would be impossible without this approval,” pointing out this was very different from Mr. Bowman’s determination regarding access. Mr. Bowman responded he did not know why Mr. Thuesen believed access would be impossible. He acknowledged the lot was steep and would require grading and a retaining wall to gain access to the back of the lot but it could be done as Mr. Thuesen illustrated in his predevelopment plan submitted as part of the short subdivision. Council President Plunkett asked which lot would require grading. Mr. Bowman answered the center lot. Council President Plunkett recalled reference to the steepness of this area and the fact that would prevent access. Mr. Bowman advised Mr. Thuesen could achieve grades in that location but may be required to do additional grading to accomplish it. City Attorney Scott Snyder explained the applicable requirement in State law was the right of direct access which was typically interpreted to mean access to a public street or way that touches the property. As noted, all three of the lots owned by Mr. Thuesen meet that requirement. State law also states access should not be substantially affected. He explained when the Council vacates a roadway, it was not uncommon for the City to retain easements in the vacation such as for sewer. If Mr. Thuesen’s point was that it would be impossible for him to construct the roadway on his property at the location shown without a City easement, that could be addressed by reserving an easement for construction purposes to install the retaining wall and for a slope easement or easement of lateral and subjacent support to allow him to install the retaining wall from the vacated easement. Council President Plunkett asked Mr. Bowman if this had been considered. Mr. Bowman answered this option only arose late this afternoon. He agreed it could be done if the Council found it necessary; however, he believed Mr. Thuesen could construct the retaining wall without a construction access. Council President Plunkett asked about the slope easement. Mr. Bowman was uncertain why a slope easement would be necessary from the vacated easement but did not believe a slope easement would be detrimental. Mr. Snyder suggested the easement be a construction easement, noting according to the plans, the retaining wall would be constructed on the subdivision side. Mr. Bowman agreed a construction easement was more appropriate than a slope easement. Mr. Snyder suggested the Council’s motion could reserve a construction easement. Packet Page 323 of 339 Councilmember Orvis asked about the access easement on the east end of the alley. Mr. Bowman responded it was his understanding that those property owners had reached an agreement regarding an access easement to ensure current access was maintained. Councilmember Orvis asked if Exhibit 7 was Mr. Thuesen’s preliminary plot plan. Mr. Bowman answered it was and showed the three lot configuration and how the lots would be accessed. For Councilmember Orvis, Mr. Bowman identified the area where the retaining wall would be constructed. Council President Plunkett asked if reserving a construction easement would be detrimental to the other property owners. Mr. Bowman answered no, explaining typically a construction easement was not a permanent easement and suggested the adjacent property owners provide feedback on that issue. Councilmember Bernheim asked if there was a need for access to construct the retaining wall as well as to access the property, noting under the current proposal there was a driveway across the front of the property. Mr. Snyder explained there were two issues with access, first, the right of direct access. The preliminary approval which creates the second lot provides access to that lot via a flag lot configuration. All four lots have direct access from a public street, therefore, in his legal opinion, every lot had direct access. The courts have at times applied a test that considers whether a vacation substantially affects access. That is a measure of damages and a fact intensive inquiry. To reduce the potential for substantially affecting access, he recommended reserving a construction easement to ensure Mr. Thuesen had the same ability to construct the improvements shown in his subdivision as existed before the Council vacated the property. Mayor Haakenson opened the public participation portion of the public hearing. Ken Reidy, Edmonds, expressed support for the vacation of the 7½ foot wide alley right-of-way between 8th and 9th, north of Daley Street, finding it in the City’s best interest as well as the public’s best interest to vacate the right-of-way. The majority of the right-of-way had remained unopened and unused since originally dedicated in 1890, the City has no planned or existing improvements within the right-of-way and he was uncertain what use the City might make of this narrow, steep, overgrown property. Further, City ownership exposes the City to unnecessary potential liabilities and the ongoing burden of administration. Vacating the right-of-way would allow the land to revert to the south side owners who would resume payment of taxes for the property, a public benefit. He was strongly opposed to the Council reserving a construction easement, anticipating it would impact his home and construction of a retaining wall would place his shed in jeopardy. He suggested it would be easier to construct the retaining wall further down the slope rather than cutting into the slope. Eric Thuesen, Edmonds, referred to Mr. Reidy’s comment that he did not see the necessity of the retaining wall, explaining that the property was very steep. He noted that due to code requirements regarding the height of a retaining wall in a setback as well as the prohibition on driveways over 14% grade, construction would be impossible without the retaining wall and the only place the retaining wall could be constructed was in the alley. He referred to the Reidy’s illegal building in the alley and suggested the City honor its codes and require the Reidys to move the building as was described to him in November 2007. Next, he suggested the dispute regarding the alley could be resolved via, 1) the alley vacation be eliminated and the City require the Reidys to remove their building, 2) the City grant the encroachment permit along the alley abutting the Reidy property for construction of the retaining wall and access to the middle lot as originally agreed, 3) legal agreements between the Olsons, himself and the neighbors abutting the portion entered from 9th be created to ensure access across the property from 9th to his garage and the Olsons, 4) dangerous trees in the alley be removed, and 5) Mr. Reidy grant an exclusive Packet Page 324 of 339 easement to him across the alley effective after the vacation. He summarized once those matters were concluded, he would support the alley vacation. Jim Wold, Edmonds, speaking for the four property owners on the east end of the right-of-way, the Olsons, Morgans, Nivens and Wolds, read a letter signed by the four homeowners stating they have met to discuss issues and concerns with ingress and egress to the Olsons, Morgans, Nivens and Wolds properties should the Council vote in favor of vacation. They believed vacation was in their collective best interests and urged the Council to approve the vacation. They are in the process of hiring an attorney to draft the details of their agreement into the easement which would be recorded within 30 days should the Council approve the vacation. Joan Bloom, Edmonds, expressed support for vacation of the alley. She recalled Mr. Thuesen at one time expressed interest in building a road in the alley and asked whether a construction easement would allow him to construct a road from 8th to 9th. Chuck Olson, Edmonds, commented the proposed vacation would not affect him except, 1) if a road was constructed his property might slough off and 2) he would like to be able to trim the overgrown vegetation in the alley. Hearing no further public comment, Mayor Haakenson closed the public hearing. In response to Ms. Bloom’s question, Mr. Bowman explained there were no plans to extend a road from 8th to 9th through to Mr. Thuesen property. He has an access easement on the north side of the Olson property that serves the house and detached garage. Access to the two proposed lots would be via direct frontage onto 8th Avenue and the center lot has a pipe stem access to 8th Avenue. Council President Plunkett inquired about the construction easement. Mr. Bowman answered the construction easement would not be permanent but would allow Mr. Thuesen to build the retaining wall on the property line and access the former alley right-of-way to facilitate construction if necessary. He displayed Mr. Thuesen’s preliminary development plan, noting the proposed house locations were only conceptual. He noted Lot 3 abuts directly on 8th Avenue and the preliminary development plan shows the road would be developed to access the house on Lot 2. He identified the potential location of the retaining wall, suggesting a construction easement be granted to where Lot 2 intersects the alley. For Councilmember Orvis, Mr. Bowman identified the location of the Reidy’s building and referred to the survey drawing in the packet that shows the Reidy property and location of the outbuilding/shed. He noted a small portion of the building encroached over the property line onto Mr. Thuesen’s property. Councilmember Orvis asked if the Reidy’s building and the retaining wall would overlap. Mr. Bowman explained the Reidy’s building would need to be modified or the Reidys would need to bring an adverse possession claim against Mr. Thuesen for the location of the building. Mr. Snyder noted no one could adversely possess against the City and if the easement remained in effect, the City had a legal obligation to remove an obstruction. Nothing the Council did would change the portion of the Reidy’s building that was on Mr. Thuesen’s property, that was outside the Council’s responsibility. Council President Plunkett observed the Reidy’s building was in the City’s right-of-way currently. Mr. Bowman agreed, noting the outbuilding was inside the 7½ feet and a point of it projected onto Mr. Thuesen’s property. The outbuilding straddled the alley, the Reidy’s property and a small portion of Mr. Thuesen’s property. Packet Page 325 of 339 Councilmember Bernheim asked if there were privately owned retaining walls, outdoor garden structures or other structures in the right-of-way further east. Mr. Bowman answered not that he was aware of. Councilmember Bernheim asked if there was any encroachment by Mr. Thuesen or the adjacent property owner into the right-of-way. Mr. Bowman answered not that he was aware of. Councilmember Wilson asked if construction easements had time constraints. Mr. Bowman answered it would depend on how the easement was structured; they typically had a time limit. Councilmember Wilson suggested there be a time restriction. Mr. Snyder asked how long the preliminary subdivision was effective. Mr. Bowman answered five years. Mr. Snyder noted that would be the period of time during which improvements for lot 2 would be constructed. Councilmember Wilson commented the distance from the east to west property lines of Lot 2 was approximately 30 feet and asked if the intent was a 30-foot retaining wall. Mr. Bowman commented the difficulty will be developing the house; Mr. Thuesen’s intent by using the alley was to maintain a 14% grade. Mr. Snyder commented that was the reason he mentioned a slope easement to allow Mr. Thuesen to regrade so that there was less impact from the retaining wall. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCILMEMBER WILSON, TO APPROVE THE VACATION AS PROPOSED. Councilmember Bernheim acknowledged there were many competing interests but the code permits the vacation if it was in the public interest and no property would be denied access. He noted the public interest was eliminating the City’s liability and increasing the tax base. The vacation would not deny access; the retaining wall could be constructed from within his property line and the plat provides for access without the easement. He concluded the proposed vacation met the criteria without an easement. Councilmember Wilson commented he considered Mr. Thuesen’s position that as the owner of 50% of the property that abuts the proposed vacation area he had the right/authority to object to the vacation. However, staff and the City Attorney had convinced him that the vacation was appropriate. Council President Plunkett concurred that Mr. Snyder and staff had demonstrated to the Council more than adequately that the vacation was appropriate. He made the following amendment in an effort to make everyone as whole as possible. COUNCIL PRESIDENT PLUNKETT MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO AMEND THE MOTION TO RESERVE A CONSTRUCTION EASEMENT. Councilmember Wilson commented a five year limit on the construction easement would be appropriate. VOTE ON THE AMENDMENT: MOTION CARRIED UNANIMOUSLY. VOTE ON MAIN MOTION: MOTION CARRIED UNANIMOUSLY. Councilmember Dawson returned to the dais. Packet Page 326 of 339 EXCERPT FROM THE 03-17-09 CITY COUNCIL MINUTES 9. DISCUSSION ON PROPOSED ORDINANCE RELATING TO THE VACATION OF THE UNOPENED ALLEY RIGHT-OF-WAY LOCATED BETWEEN 8TH AVENUE NORTH AND 9TH AVENUE NORTH, NORTH OF DALEY STREET. City Attorney Scott Snyder recalled the Council made a decision several months ago; at the time the property owners at the east end of the alley indicated they needed 30 days to develop easements to allow access to a garage. Development Services Director Duane Bowman and he held meetings with two property owners at the west end of the alley, Mr. Thuesen and Mr. Reidy, in the hopes of reaching a consensus on how certain actions would occur but that process was unsuccessful. Council President Wilson suggested Mr. Reidy speak to the Council. Mr. Snyder advised the Council could reopen the public hearing but cautioned against allowing only one party to speak. For Council President Wilson, Mr. Snyder explained Mr. Reidy has very strong adverse possession claims with regard to portions of Mr. Thuesen’s property. The difficulty for staff is these claims were not asserted in either of the subdivision processes that resulted in the grant of a 2-lot subdivision and now preliminary plat approval for a 3-lot subdivision on Mr. Thuesen’s property. This is one of the cases that went to Superior Court that the City lost and the judge’s order confirmed the rights of Mr. Thuesen to develop the property and vested him in three lots. The retaining wall shown in the 2-lot subdivision as well as the 3-lot subdivision preliminary plat lies immediately on the property line adjacent to the right-of-way and what will be, upon eventual vacation, Mr. Reidy’s property. Mr. Snyder relayed Mr. Reidy believes strongly that he should not have raised that issue to the Council; however, his intent was to identify a way to permit the vacation of property the City had no use for and at the same time recognize the City had given approval for construction of a retaining wall immediately adjacent to the property and if the easement is vacated it would be very difficult for the wall to be constructed. Staff had been trying to identify a way to recognize Mr. Thuesen’s right to develop his property as previously approved while vacating the property as the property owners have sought. By vacating the property and retaining a construction easement, the City would not be done with this process. The City will be utilizing the right-of-way construction process to balance the property owners’ interests and review construction mechanisms, provide for bonding and insurance for constructing the wall as well as consider whether there are any options to removing a portion of Mr. Reidy’s shed. Mr. Reidy has a permitted garage with an unpermitted shed extension that lies within the right-of-way. Notice to remove the shed extension has been previously given to Mr. Reidy. The City’s goal was to reach a compromise that would allow construction of the retaining wall without removing the shed. Council President Wilson asked if during the 9-month process the Reidys had been fined for the portion of the shed that is illegal. Mr. Snyder answered no, acknowledging an intrusion into a right-of-way was not allowed and the City had the obligation to clear it which was one of the reasons the vacation was appropriate. COUNCIL PRESIDENT WILSON MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO APPROVE AN ORDINANCE OF THE CITY OF EDMONDS, Packet Page 327 of 339 WASHINGTON, VACATING A PORTION OF THE PLATTED BUT UNBUILT RIGHT- OF-WAY OF AN ALLEY LOCATED BETWEEN EIGHTH AVENUE NORTH AND NINTH AVENUE NORTH, NORTH OF DALEY STREET, RESERVING AN EASEMENT FOR CONSTRUCTION PURPOSES AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. Councilmember Peterson advised he would abstain from the vote as he had not been involved in the previous discussion. MOTION CARRIED (6-0-1), COUNCILMEMBER PETERSON ABSTAINED. Packet Page 328 of 339 Packet Page 329 of 339 Packet Page 330 of 339 Packet Page 331 of 339 Packet Page 332 of 339 Packet Page 333 of 339 Packet Page 334 of 339 Packet Page 335 of 339 Packet Page 336 of 339 On March 17, 2009, via Ordinance #3729, an alley right-of-way easement (“ROW”) was vacated concurrently and jointly with the reservation of a Temporary Construction Easement (“EASEMENT”). I think our passage of that EASEMENT may have been premature and I would like for Council to consider a Motion to Reconsider Ordinance #3729 in which Council both granted the vacation and the EASEMENT . It’s possible our reservation of the EASEMENT in favor of Mr. Thuesen is improper for several reasons. First, contrary to the requirements of EDC 20.70.090 and other EDC code provisions, the fact that the EASEMENT was going to be imposed as a condition of vacating the ROW was not included in the public notice of the vacation hearing, leaving the public completely unprepared to comment before or during the September 16, 2008 hearing. In addition, the public was unable to submit written comments before the September 16, 2008 hearing. That limitation of due process is may not have been proper. Second, according to our own ordinance governing this procedure (20.70.140) the EASEMENT should have been conditioned by Resolution, subject to a 90 day period to grant the EASEMENT. It is my understanding that this was not done. Third, even if the EASEMENT had been adopted by Resolution, there is a question about whether it complies with any allowable condition the City may impose as a condition of ROW vacation pursuant to EDC 20.70.140. This matter is appears unclear as meritorious arguments are made on both sides of the matter. Fourth, it is undisputed public record that the EASEMENT was reserved solely to allow Mr. Thuesen to make use of the area while he constructs his retaining wall. As such, I don’t see how it serves any public purpose. Because the City’s interest in the alley is limited to public ingress and egress, it is beyond the scope of the City’s interest to reserve an EASEMENT solely to benefit one private party (EDC 20.70.030 says: In vacating a street, alley, or easement, the city council may reserve for the city any easements or the right to exercise and grant any easements for public utilities and services.) and may be considered illegal for that reason alone. SOLUTION: Mr. Thuesen has appealed Ordinance 3729, which relates to the ROW VACATION as well as the EASEMENT. As Mr. Thuesen and Mr. Reidy now apparently both oppose the EASEMENT, it makes sense to Reconsider Ordinance 3729 for a date certain a few weeks from now. Packet Page 337 of 339 TIMELINE ON THUESEN-REIDY CASE Prepared By Mauri Moore 10/29/09 2005 Mr. Thuesen appealed a hearing examiner decision on this issue, which ended up in superior court. 2007 April 25 - Superior Court Judge Lucas referred it back to hearing examiner with instructions to get the survey and wetlands delineation verified. June 11 - Hearing Examiner took two letters, from surveyor and wetlands company, stating they had done their work properly. Hearing Examiner then approved the development project. City appealed the decision. (It is unclear why the appeal was made.) July 2 - LUPA appeal period expired, meaning neighbors could no longer appeal. July 5 - Mr. Thuesen put stakes in the ground. Mr. Reidy says this was his first knowledge there could be an encroachment, as surveys hadn’t shown it. July 5-16 - City finds out about encroachments via a site visit from Jeannie McConnell. July 11 – Thuesen filed a code enforcement request to force removal of Reidy’s encroachment. July 18 – Reidy attorney Matt Cruz met with Duane Bowman. Bowman informed him city was in process of settlement agreement with Thuesen over his threat to sue over delay of project. July 24 - City settled for paying Thuesen $20,000 and granting the 2 lot short plat. August 14 – Mr. Thuesen cleared the wetland. LUPA says 21 days to appeal before development vests. This was 22 days after he got the permit for the development. August 15 – State Department of Ecology came to inspect the wetland, found it cleared and was denied access by Thuesen, saying he had a Corps of Engineers permit. 2008 January – Mr. Reidy did his own survey, confirming the encroachments. June - neighbors, including Mr. Reidy, met with two councilmembers to ask the council to initiate a right of way vacation. Council passed a resolution to establish a public hearing. July 22 - public hearing continued to Sept 16, 08, after Mr. Thuesen filed a heavy file. Sept 16 - Public Hearing at city council, advertised ONLY for ROW vacation. Interested parties testified only to the vacation. Mr. Bernheim moved and I seconded a motion to vacate the alleyway. Packet Page 338 of 339 Then Mr. Plunkett moved, on Mr. Snyder's suggestion, that we reserve a temporary construction easement for Mr. Thuesen. Mr. Wambolt seconded it. Our planning director Duane Bowman opposed it, saying it was not necessary and the developer had no vested rights. Mr. Thuesen never requested it. But, we passed it. 2009 So, March 17 - via Ordinance No. #3729, an alley right-of-way easement was vacated concurrently and jointly with the reservation of a Temporary Construction Easement… all part of the same ordinance. The council voted on an easement which had not been drawn yet. Staff did the property description after the fact for inclusion in the ordinance. March 20 - Mr. Reidy filed for quiet title action in Superior Court. This is 2 days before the Ordinance was published; seven days before it became effective. April 7 – Mr. Thuesen appealed Ordinance No. 3729 (which includes both the vacation and the easement.) August 24 - A corrected Order to Correct was issued to Ken Reidy related to the temporary construction easement... meaning he was told to tear down his shed. August 31 - Mr. Reidy appealed the Order to Correct. October 1 – Ms. Bullis represents she mailed notices to adjacent property owners with a list provided by Mr. Reidy and posted it in public places. October 9 - Mr. Reidy got first notice of Hearing Examiner hearing set for October 15. Public notice was inadequate, so it was postponed until November 5. October 23 – Mr. Reidy met with Detective Steve Morrison and a perjury investigation is opened against Ms. Bullis and Ms. Coccia relating to sworn statements about notifications. Packet Page 339 of 339