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11/18/1986 City CouncilTHESE MINUTES SUBJECT TO DECEMBER 2, 1986 APPROVAL EDMONDS CITY COUNCIL'MINUTES NOVEMBER 18, 1986 The regular meeting of the Edmonds City. Council was called to order -at 7:00 p.m. by Mayor Larry Naughten in the Plaza Meeting Room of the Edmonds Library. All present joined in the flag sa- lute. PRESENT STAFF PRESENT Larry Naughten, Mayor Mary Lou Block, Planning Div. Mgr. Laura Hall, Council Pres. Bob Alberts, City Engineer Steve Dwyer Peter Hahn, Comm. .Svc. Director Jo -Anne Jaech Bobby Mills, Pub. Wks. Supt. Bill Kasper Art Housler, Admin. Svc. Director John Nordquist Jack Weinz, Fire Chief Lloyd Ostrom Jim Barnes, Parks & Rec. Div. Mgr. Jack Wilson Chris Beckman, Engineering Coord. Tom Peterson, Student Rep. Sharon Thatcher, Personnel Mgr. Hal Reeves, Building Official Charles Day, Acctg. Supervisor Scott Snyder, City Attorney Jackie Parrett, City Clerk Margaret Richards, Recorder Councilmember Nordquist and Councilmember Kasper arrived at 7:05 p.m. and did not vote on the Consent Agenda. CONSENT AGENDA Items (B) and (H) were removed from the Consent Agenda. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER JAECH, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The approved items on the Consent Agenda include the following: (A) ROLL CALL (C) ADOPTION OF FINDINGS OF FACT AND CONCLUSIONS OF LAW UPHOLDING APPEAL OF HEARING EXAMINER DECISION REGARDING REVO.CATION OF HOME OCCUPATION PERMIT FOR JOHN POMEROY (CU-9-85) (D) ADOPTION OF FINDINGS OF FACT AND CONCLUSIONS OF LAW DENYING APPEAL OF HEARING EXAMINER DECISION REGARDING VARIANCE TO EXCEED 25% LIMITATION OF IMPROVEMENTS TO NONCONFORMING RESIDENCE AT 732 BELL ST. (WILL SMITH/V-19-86) (E) REPORT ON BIDS OPENED NOVEMBER 3, 1986 FOR PURCHASE OF AID CAR AND AWARD OF BID TO STARLINE EQUIPMENT.CO. ($35,542.45) (F) APPROVAL OF FINAL PLAT FOR 5 LOT SUBDIVISION OF PERRINVILLAGE AT 18730 - 76TH AVE. W. (RICK COLEMAN /P-2-85) (G) APPROVAL OF FINAL PLAT FOR 7 LOT SUBDIVISION OF HAINES POINT AT 16828 - 76TH AVE. W. (HOMELAND HOMES, INC. /P-4-85) (I) APPROVAL .OF FINAL PLAT FOR 5 LOT SUBDIVISION OF FINNEGAN'S LANE AT 21505 - 92ND AVE. W. (WOODCRAFT HOMES, INC./P-1-86) APPROVAL OF MINUTES OF NOVEMBER 10, 1986 [ITEM (B) ON THE CONSENT AGENDA] Councilmember Hall noted that Councilmember Nordquist was not yet present. She referred to a statement he made on page 6, paragraph 8. She requested that his statement be quoted verbatim. Councilmember Nordquist said, "As a vendor, I'd.. like to thank you and Mary for coming tonight. It's tough to see one side get paid for giving one position and you give yours for nothing. I do want to thank you". Councilmember Hall referred to a memorandum from Administrative Director Art Housler stating that the interest rate on page 1, third line from the bottom, should be 10% and not 18%. She said she was unsure if the statement on page 1, bottom paragraph, was a direct quote or a typographical error and would like it clarified. The comment made, as stated by Coun- cilmember Nordquist, is as follows: "In reading this document: regarding Snocom-- It's been through your committee, Jo -Anne?" Mayor Naughten, "Yeah". Councilmember Nordquist, "It seems to me it was a community effort. I was a little bit surprised at the interest charge for us partici- pating in an organization. Doesn't that seem a little bit--". COUNCILMEMBER HALL MOVED, SECONDED BY. COUNCILMEMBER WILSON, TO APPROVE THE MINUTES AS AMENDED. MOTION CARRIED. APPROVAL OF REVISED BUDGET ,FOR WORK ON ENVIRONMENTAL RESEARCH RELATED TO PERMITS FOR BRACKETT'S LANDING PROJECT 4,000 ITEM H ON THE CONSENT AGENDA Councilmember Jaech inquired if the revised budget was part of, but not directly related to, the land swap. Community Services Director Peter Hahn said it was not related. COUNCILMEMBER JAECH MOVED, SECONDED BY COUNCILMEMBER WILSON, TO APPROVE ITEM (H). MOTION CARRIED. AUDIENCE Mayor Naughten opened the audience portion of the meeting. Ella Scheglov, Ella's Family Restaurant, 22716 Highway 99, said the Council had decided in the recent past to disallow trailer signs on Highway 99. She requested the Council to reconsider its decision, noting that trailer signs are essential to public awareness of businesses on High- way 99. She said businesses in the north end of Aurora are allowed to display two trailer signs. Kirby White, 639 - 8th Ave. S., thanked the Mayor and Councilmembers for their participation in the auction held by the Boys Club. lie said their goal has not yet been reached, and the Club is still accepting contributions. Councilmember Hall thanked Mr. White for his endeavors. She noted that he had only two weeks to organize the event. Joan Swift, 18520 Soundview Place, said she has lived in Edmonds since 1958 and at her present address since 1973. She said she has observed the quality of air deteriorate from pollution caused by wood burning stoves. She requested the City to consider adopting its own wood burning regulations. She said that the Department of Ecology is presently drafting a bill which will be presented to the legislature in the near future regarding wood burning stoves. She said the City does have authority to enact its own regulations under the Clean Air Act. Ms. Swift said she is a member of an organization called Citizens Against Wood Stove Fumes. An advisory board consisting of members of the Environmental Health Department -University of Wash- ington, doctors, and members of the technical board consisting of a representative from the State Department of Ecology, Puget Sound Air Pollution Control Agency, Chris Weinberger of the Envi- ronmental Protection Agency, and a representative from the Lung Association all support the organ- ization's health statement which defines the detriments of wood smoke. She requested that the Council allow her more time in the future to discuss this issue. Councilmember Jaech noted that there are wood stoves available which do meet clean air acts that have been enacted by several states. She noted that it takes approximately fifteen years to reverse the effects of pollution. She recommended that this issue be discussed subsequent to finalization of the budget. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER HALL, TO REFER THE ISSUE OF WOOD BURNING STOVE REGULATIONS TO THE PLANNING BOARD. MOTION CARRIED. Jordan Miller, M.D., 21810 - 76th Ave. W., said he has noticed a dramatic increase in the number of adults complaining of asthma and respiratory illnesses in the last five years which are usual- ly common to children. He said he could only attribute these incidences to wood smoke. Dr. Miller said the regulation of wood stoves would be an inadequate solution. He analogized the effectiveness of regulating wood burning stoves 'to filtered cigarettes. He recommended that the City consider regulating the days when wood burning is permissible with the exclusion of people who cannot afford to heat their homes through other means. EDMONDS CITY COUNCIL MINUTES Page 2 NOVEMBER 18, 1986 Councilmember Ostrom requested Staff to notify Ms. Swift and Dr. Miller of Planning Board hear- ings regarding this issue. Mayor Naughten noted that Dan LeFree was in the audience along with Webelos from Den 1, Pack 65. The Webelos are working .towards their citizenship activity badge. Mayor Naughten intro- duced them as follows: Ryan Carter, Greg Faust, Allan Salmond, and Tyler Tweeter. Mayor Naughten closed the public portion of the meeting. HEARING 014 HEARING EXAMINER RECOMMENDATION ON RESOLUTION TO VACATE UNBUILT RIGHT-OF-WAY OF PORTION! OF 6TH AVE. S. LOCATED BEIWEEN RESIDENTIAL DEVELOPMENTS OF ELM PLACE AND WILLOW CREEK Councilmember Kasper stated that the corporation that he is employed by has a loan on the subject property so he would not participate in the hearing. He left the dais. Planning. Division Manager Mary Lou Block reported that the City Council, on June 16, 1986, passed Resolution No. 644 initiating the vacation of the west 15 feet of the unopened right-of-way of 6th Ave. S. between the residential developments of Willow Creek and Elm Place. On September 4, 1986, the Hearing Examiner held .a public hearing on the vacation resolution. The Hearing Examiner, on October 8, 1986, issued his report recommending vacation of the subject right-of-way subject to the reservation of easements for public utilities and a walkway. The Hearing Examiner did not recommend compensation for the vacated right-of-way. It is his opinion that adequate compensation was granted to the City with the dedication of the park land as part of the approval of the development of Willow Creek. Ms. Block said it is Staff's recommendation to adopt the Hearing Examiner's recommendation and direct the City Attorney to prepare„the necessary ordinance. Mayor Naughten opened the public portion of the hearing. No public input was offered. Mayor Naughten closed the public portion of the hearing. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER WILSON, TO ADOPT THE HEARING EXAMINER'S RECOMMENDATION FOR ST-3-86. MOTION CARRIED. HEARING ON APPEAL OF HEARING EXAMINER DECISION ON. PROPOSED CONDITIONAL USE PERMIT FOR SELF- SERVICE GAS PUMPS AT 1018 PUGET DR. CU-13-86/APPELLANT: RAINIER NATIONAL -BANK) Planning Division Manager Mary Lou Block reported that on October 15, 1986, the Hearing Examiner issued a decision denying the conditional use permit application of Rainier National Bank for self-service gasoline pumps at 1018 Puget Drive. The Hearing Examiner interpreted the Edmonds Community Development Code (ECDC) that. self-service gasoline pumps do not qualify as a "drive-in business" and, therefore, are not permitted in the BN (neighborhood business) zone either as an outright permitted use or as a conditional use. In his report, the hearing Examiner explains in some detail the rationale behind his determination. On October 24, 1986, the Applicant filed an appeal of the Hearing Examiner's Decision. ,Ms. Block noted that a copy of the appeal letter, and the Hearing Examiner's decision and a vicin- ity map were attached to the Council packets. Ms. Block said the traditional gasoline service station is rarely being built. Gasoline sales are now primarily made by convenience stores or self-service stations. Staff has consistently interpreted all gasoline stations, whether self-service or not, to fall within the "drive-in business" definition. In fact, the Hearing Examiner has granted at least one conditional use permit to a self-service station under this interpretation. Without such an interpretation, the only zone district that would allow self-service gasoline sales would be the CG zone along Highway 99. The argument posed by the Appellant (Rainier National Bank) is that gasoline sales are a retail operation, which is an outright permitted use and not subject to the requirement of a conditional use permit. Staff does not concur with this interpretation of the Code. EDMONDS CITY COUNCIL MINUTES Page 3 NOVEMBER 18, 1986 In deciding this appeal, Staff sees that the two most reasonable alternatives are either a re- quirement for a conditional use permit or an outright denial because of the antiquated definition in the ECDC. A literal interpretation of the Code definition of "drive-in business" seems to exclude self-service gas sales. Therefore, if the Hearing Examiner's decision is upheld, Staff felt the issue should be remanded to .the Planning Board for review. Councilmember Ostrom inquired if drive-in businesses are disallowed in the BC zone. Ms. Block said drive-in business uses are treated in the same manner in the BC zone as in the BN zone. Councilmember Hall inquired if the definition of a gas station was looked up in Webster's. Ms. Block said the definition used by the Hearing Examiner is the definition in the ECDC. City Attorney Scott Snyder noted that the Hearing Examiner has not made a decision regarding the factual issues (whether or not a conditional use permit should be granted). He said the Hearing Examiner felt he did not have the authority to make that decision. Mr. Snyder requested that issues be directed towards the legal issues and not whether a permit should be granted. Councilmember Ostrom raised a point of order. He said he received a letter from Harold and Beth Schnarre. Mayor Naughten inquired if he also received a letter from Gull Industries in the same context. Councilmember Ostrom said that letter was in the Council packets. Mr. Snyder recommended that interested parties that were in attendance at the hearing be given an opportuni- ty to review those communications. Councilmember Ostrom inquired if the City Clerk -had the let- ters in her possession. City Clerk Jackie Parrett said she had only received the letter from Gull Industries. Councilmember Ostrom submitted his letter to the City Clerk. (It was marked as Exhibit #1.) Councilmember Nordquist raised. a point of order. He inquired what division of Rainier National Bank had raised the appeal. Dale Chandler, Rainier National Bank, said the bank acting as trust- ee had. Councilmember Kasper said he received a telephone call recently from Harold of the grocery store near the site. Harold had said he had an extended lease. Councilmember Hall said she has also had the same conversation. She noted that she had been provided a copy of a petition from Roger Hertrich which had been submitted at the Hearing Examin- er hearing. Councilmember Wilson said he had a brief telephone conversation with Mrs. Shaw. Mayor Naughten opened the public portion of the hearing. Sara Mack, 500 Galland Buildi.ng, 1221 Second Avenue, Seattle, said in March of 1986 Rainier National Bank applied for a conditional use permit to build a self-service gas pump island and convenience store upon the advice of Staff because Staff had said that a self-service gas station is considered as a drive-in business under the ECDC. Staff recommended approval of the permit. Ms. Mack said three hearings were held before the Hearing Examiner. He concluded that self-ser- vice pumps do not fit within the definition of a drive-in business, thus a conditional use permit was not available. Ms. Mack said the appeal was raised because the applicant felt that the Nearing Examiner did not research the Code in looking at what uses are permitted in the BN zone. She cited the permitted primary uses in the BN zone under Section 16.45.010 as neighborhood oriented retail stores. She said uses that are excluded are: commercial garages, used car lots, taverns, theatres, auditor i- ums, and undertaking establishments. Ms. Mack noted that the Code specifies what uses require a conditional use permit, i.e., retail sales or service use which provides goods or services needed on an everyday basis by residents of the neighborhood. Ms. Mack submitted the Table of Contents and a discussion from the Standard Industrial Classifica- tion Manual (marked Exhibit #2) to the Council which, said said, is utilized routinely throughout the country in categorizing various industries. She noted that gas stations are classified as retail trade. Ms. Mack noted that the survey conducted by residents of the Westgate area, which is Exhibit 15 of the hearing before the Hearing Examiner, indicated that the second most popular use in that EDMONDS CITY COUNCIL MINUTES Page 4 NOVEMBER 18, 1986 area was a gas station. She said the record,is clear•that the proposal is a neighborhood orient- ed retail use. Ms. Mack said if the Hearing Examiner was correct in that the proposed use is not a drive-in business, the Council must find it is allowed outright. If the Council finds that Staff's inter- pretation of the Code is consistent with past practices in the City, she said the Council must remand the issue to the Hearing Examiner and direct him to make a decision on the application. Dale Chandler, Rainier National Bank, Trust Division, said he has observed ten gas stations oper- ating in a BN or BC zone within the City, nine of which are self-service. He said to deny the proposal for self-service gasoline in the same zone would not be fair. He said to require those nine stations to cease self-service gas would cause_ a similar hardship. Mr. Chandler reported that statistics reveal that 80% of the petroleum sold in the City is on a self-service basis. He said if each station sold $1,00.0,000 of gasoline per year, $75,900 would be lost in sales tax if the sales were disallowed in the City limits. Mr. Chandler said surveys of petroleum purchasers indicate that the price of self-service gaso- line is not the only attraction, but the convenience is as well. Mr. Chandler said the economic livelihood of the nine self-service stations must be considered if the Council disallows self-service pumps in the City limits. Mr. Chandler referred to Section (A) and (B) of the BN zone Code. He said the neighborhood gro- cer with self-service gasoline is the epitome of a group of products that can be categorized as an everyday need. Mr. Chandler noted that the combination of gasoline and a neighborhood grocer is a very strong trend. Ms. Mack said she and Mr. Chandler were present at the hearing to ask the Council to "make some sense out of the Hearing Examiner's decision". She asked the Council not to leave the City and its residents with the uncertainty that the proposed use is not permitted outright or as a condi- tional use. Walt Lester said he lived adjacent to the property in question. He said there has been a gas station on the subject property for at least fifteen years. He said he would like to see the unkempt property refurbished. Roger Hertrich, 1020 Puget Drive, reminded the Council that the BN zone and use in the BN zone were the topics of discussion. Mr. Hertrich said the residents of north Edmonds would like to protect their small business commu- nity. Mr. Hertrich said a BN zone is a residential neighborhood with a commercial use. The purpose of the Code is to protect the residential atmosphere. He said a strict interpretation of the Code must be made if the neighborhood is to be protected. Mr. Hertrich noted that the Hearing Examin- er interpreted the Code very strictly. Ile requested that the Council uphold the Hearing Examin- er's decision. Mr. Hertrich said he agrees with Staff that if there is reinterpretation of the Code, it must be done through the hearing process. Mr. Hertrich reminded the Council that the Code specifies that business is to be conducted within the confines of a building in a BN zone unless a conditional use permit is granted. Mr. Hertrich said the proposed use is probably the most intense traffic generator. He noted that the Centrac study revealed that on -site traffic would be reduced by 20% by elimination of the gas pumps. He reminded the Council that the proposed use is located in an area that already has traffic problems and is the main concern of the residents. Mr. Hertrich implored the Council to conduct good planning in a BN zone, to upgrade the Code, and deny the appeal. Councilmember Dwyer inquired what the difference in traffic would be between the proposed use and a traditional gas station. Mr. Hertrich said he did not have that information. ED.MONDS CITY COUNCIL MINUTES Page 5 NOVEMBER 18, 1986 Jane Cunningham, 1030 Grandview, said the City decided that Olympic View Drive was the princi- pal street. She noted that a certain real estate business at that intersection used to have a Puget Drive designation but it was' changed to Olympic View Drive. She expressed her concern regarding the conflict of addresses and requested the City to designate the project as being on Olympic View Drive rather than Puget Drive.. Councilmember Ostrom inquired if the address was different in the past than it is at the present time. Ms. Cunningham replied.negatively. She said the real estate address used to be 953 Puget Drive but is now 1233 Olympic View Drive. Mayor Naughten closed the public portion of the hearing.. Councilmember Wilson inquired if he could make inquiries of Staff. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER KASPER, TO REOPEN THE PUBLIC PORTION OF THE HEARING. MOTION CARRIED. Councilmember Wilson inquired how Staff interpreted Section 16.45.010 Subsection A (2) - Retail Services Uses. Ms. Block said retail uses are considered as everyday common uses, such as barber shops, beauty shops, etc. Councilmember Wiison inquired if gas pumps were included in that sec- tion. Ms. Block said gas pumps are not considered as a standard retail service use because busi- ness is not conducted within an enclosed building. Councilmember Wilson inquired if the former gas station was considered as a traditional gas sta- tion or self-service station. Ms. Block said she recalls that gasoline was available on a self- service basis just prior to closure. Councilmember Wilson said that was his recollection, also. Councilmember Wilson inquired how the Hearing Examiner decision would affect service stations, gas stations, convenience stores with gas pumps in the past, present, and future if it is upheld. Mr. Snyder said there is Washington case law that a permit issued under a mistake of fact or mistake of law vests no right in the person who has applied. He said if that is the case, Staff could then proceed to inform each holder of a conditional use permit that their per- mit was invalid and proceed, or any person in the community could file a complaint. Mr. Snyder said the Council could proceed in one of two ways: 1) it could find that the Code had been misinterpreted in the past. If so, the issue would be a case of first impression, and the Council would not be bound by prior decisions of Staff or the Hearing Examiner. The Council would then be establishing precedent and would proceed from the date of the decision, i.e., no mistake had been made, and the Council would be establishing the interpretation of that term; or 2) the Council could find that the term has been misapplied, does not permit the use, and then remand the issue to the Planning Board and suspend action with relation to any permit until the Code has been reinterpreted by legislative action. Councilmember Wilson inquired how the Gull Industries representative's statement, "In the foresee- able future it's our intention to modernize this facility. Inability to retain self-service gasoline, which is our. only method of gasoline marketing, would permanently forestall the modern- ization and upgrade of this location," be viewed. if the Council proceeded from the date of the decision. Mr. Snyder said the Council could decide that Staff interpretation of the ten existing businesses should continue to be applied with respect to all pending applications, but that all future applications are considered under a new definition and remand it to the Planning Board and put a moratorium on the issuance of any permit for gas station use until such time as it is is- sued. If the Council interprets the meaning of the existing language, that interpretation should be even-handedly applied to all.existing businesses. Councilmember Hall inquired if the City Attorney was stating that the Council "was flying by the seat of its pants as per the definition of a gas station". Mr. Snyder said Ms. Block's statement that a gas station was nowhere defined in the Code was incorrect. He said he believed she was referring to drive-in businesses. Mr. Snyder said. Washington courts have consistently applied standard definitions and have repeatedly referred to resources such as Webster's and other dictionaries to determine what terms mean. Another well -accepted canon of interpretation, he said, is how the administrative body who interprets and administers the Code has defined it in the past. Councilmember Kasper inquired how the ten existing stations were ruled on in the past. Ms. Block said Staff, ultimately, issued the building permits. Councilmember Kasper inquired if a proposal !.DMONDS CITY COUNCIL MINUTES Page 6 NOVEMBER 18, 1986 for an existing station was reviewed by the Hearing Examiner. Ms. Block replied affirmatively. Councilmember Kasper inquired about the Hearing Examiner's decision. Ms. Block said he approved it. Councilmember Kasper inquired if any conditional use permits were required. Ms. Block said a conditional use permit was granted to a convenience store with a gas station, and three other conditional use permits were granted by the Board of Adjustment. Councilmember Kasper inquired if the permits were granted before 1980. Ms. Block replied affirmatively. Mr. Hahn noted that the last conditional use permit was granted in July of 1984. Mayor Naughten closed the public portion of the hearing. Councilmember Ostrom said the basic issue before the Council was: Did the Hearing Examiner inter- pret the Code correctly. lie said the Hearing Examiner and Council are charged with interpreting the Code, and the Council should not concern itself with other businesses in the same category. Councilmember Kasper said it appears that the Hearing Examiner has interpreted the meaning of a drive-in business and rendered judgment both ways. Therefore, the Council should render a deci- sion and not remand the issue to the Hearing Examiner. Councilmember Ostrom said he felt the issue should be remanded to the Planning Board, and the Council should only consider the Hearing Examiner's decision regarding the proposal before it at the present time. Councilmember Hall inquired if Councilmember Ostrom felt that the Council should consider a mora- torium. Councilmember Ostrom said the Council could consider a number of alternatives: affirm the Hearing Examiner's decision, disagree with the Hearing Examiner's decision, or remand the issue to the Planning Board. Mr. Snyder said the Council was acting in a quasi-judicial capacity in that it would interpret the Code as written. If the Council felt that the Code should be amended, it is required to act through the Planning Board. Councilmember Dwyer said he concurred with the Hearing Examiner's decision in that the use is a qualitatively different use than a full -service gas station. He said if the Council does up- hold the Hearing Examiner's decision, its only obligation is to send the matter to the Planning Board in a timely fashion to start the appropriate hearing procedures to determine where the new type of business use is best placed in the zoning ordinances. Councilmember Dwyer said he was convinced that a convenience store with gas pumps generates much more traffic than either a conve- nience store or a gas station alone. Ile said he felt the Council should uphold the Hearing Exam- iner's decision and remand the issue of what zone.uses would be appropriate to the Planning Board. Councilmember Wilson asked Councilmember Dwyer if it was his understanding that if that happened, the Hearing Examiner's decision was upheld on that basis, the door would be opened for interested zealots to pursue through the present system some other stations . Councilmember Dwyer responded that if they were simultaneously resolving the question of where these uses belong, he would not vote to appropriate any funds or manpower to enforce that type of thing when the issue might very well go away in three months. He said the question of what we can be forced to do is whether we are operating in good faith. If we are having hearings on the question and it is determined that we are operating in good faith, we are under no obligation to shut down existing uses. Councilmember Hall expressed concern regarding the multiple uses of gas stations. She questioned the establishment of a facility in Edmonds similar to the former Automat. She said she did not think the Hearing Examiner was either right or wrong because society is in a transitional stage. She said she would vote to uphold the Hearing Examiner's decision and remand the issue to the Planning Board. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER HALL, TO UPHOLD THE HEARING EXAMINER'S DECISION DENYING THE CONDITIONAL USE PERMIT AND REMAND THE ISSUE TO THE PLANNING BOARD. MOTION CARRIED WITH COUNCILMEMBER KASPER OPPOSED. HEARING ON APPEAL OF HEARING EXAMINER DECISION REGARDING ISSUANCE OF BUILDING PERMIT AT 15810 - 75TH PL. W. GIL THIRY, OWNER APPELLANT: PETER HAHN/AP-12-86 Mayor Naughten said the issue was placed on the agenda and scheduled for only twenty minutes in order to meet legal criteria. He said the Council could, if it wishes, continue the hearing in the near future. EDMONDS CITY COUNCIL MINUTES Page 7 NOVEMBER 18, 1986 Kimberlee McDonald, attorney for the respondents, Suite 405, Mutual Life Bldg., 605 - First Ave., Seattle, said the Council should address whether or not the appellant, Peter Hahn, has standing to bring the appeal. Ms. McDonald said a Superior Court would have to. decide whether or not the appellant has standing, as does the Council since it is acting in a quasi-judicial capacity. She said Mr. Hahn and his staff must show that they have suffered injury by virtue of the fact that the building permit was granted. Another criteria, she said, in deciding whether or not to hear the appeal is whether or not there was actual notice given of Mr. Thiry's appeal to the Hearing. Examiner. She said notice was given. Ms. McDonald noted that none of the peo- ple who attended the.hearing raised an appeal. Councilmember Hall asked City Attorney Scott Snyder if he recalled the prior action which ad- dressed this issue. Mr. Snyder recommended that the Council not consider the insurance issue at the present time. He reminded the Council that the issue before it at the present time was if there was standing under the City's ordinance as it is written. Mr. Snyder said it is his understanding that under the Revised Code of Washington in terms of termination of the right to appeal within an ordinance that it is purely a creature of that ordi- nance, and the Council can establish a standard. He noted that the Council does have a standard policy of permitting any individual to appeal a decision. Mr. Snyder suggested, in light of Ms. McDonald's request, that the Council enter a finding regard- ing Staff's standing to appeal at the present day. Councilmember Kasper noted that the Council had previously ruled to hear the appeal in light of the fact that there may have been individuals who did not raise an appeal because Staff had done SO. Ms. McDonald noted that the appeal was filed on the second to the last day of the appeal peri- od. She said it was quite open, and no other appeals came forth. Notification of the appeal would not have gone out until after the appeal period had been finalized. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER OSTROM, TO ACCEPT THE APPEAL BY STAFF. MOTION CARRIED. Community Services Director Peter Hahn said he assumed there would be a continuation of the hear- ing because there was not enough time to hear all the issues that evening. Fie said his comments would be directed toward the poor decision made by the Hearing Examiner and not towards Mr. Thiry. Mr. Hahn reported that the appeal was a significant one involving, as it does, the technical area of the Uniform Building Code and the special role of the Building Official. Allowing the Hearing Examiner's decision and the rationale upon which she formulated it to stand would also cloud the entire Meadowdale issue. Mr. Hahn said he was of the opinion that the Hearing Examiner wrote a heavily flawed decision based on some deep-seated misunderstandings of municipal responsibili- ties. She, in essence, usurped both the City Council's policy -making role and the Building Official's administrative role by strongly implying that hold harmless covenants can replace adequate engineering mitigation measures. She also improperly implied that a high probability of an area -wide slide need not be adequately mitigated. Mr. Hahn said the Edmonds Community Development Code, and for that matter the Uniform Building Code, does not distinguish between site specific slides and area -wide slides. The ECDC and the UBC specifically state that building permits cannot be issued unless slide risks have been adequately mitigated. The Building Official, therefore, cannot legally grant a building permit which, in effect, grants relief from the requirement of mitigating slide risks, including a high risk for area -wide slides. The Department cannot accept, on behalf of the City, a risk level which the ECDC and professional standards indicate is too high; this would be clearly a legislative decision. Therefore, should the Council rule in favor of Mr. Thiry, it should also direct the City Attorney to develop a proper legal mechanism for granting a building permit. Mr. Hahn cited a portion of 19.00.010, Section (I), as follows: "Building, grading, and excava- tion permits for construction on land which the Director of Public Works finds to be unsuitable for improvement due to flooding, inadequate drainage, excessively steep slopes, unsatisfactory foundation support, stability, or topography for the plan submitted, shall be denied. In making this determination, the Director shall consider not only the land which is the subject of the application but, in addition, the surrounding areas which would be adversely affected if the permit were granted". rDMONDS CITY COUNCIL MINUTES Page 8 NOVEMBER 18, 1986 Mr. Hahn said the Hearing Examiner demonstrated a misunderstanding of the role of the covenants and hold harmless agreement in this case. A covenant and. hold harmless agreement, he said, is not a substitute for well -engineered mitigation measures which reduce slide risk to a minimum. Mr. Hahn said the Hearing Examiner also demonstrated a lack of understanding of the role of the Plan Checker and the technical comments that he made at the hearing in aiding the Building Offi- cial. The role of the Plan Checker is to limit his review to certain technical aspects of the building design, which is but one input which aids the Building Official in his decision on the permit issuance. The fact that the Plan Checker did not recommend denial of the permit is not relevant and is not normal procedure •For plan checkers. Mr. Hahn reminded the Council that the consultant for Mr. Thiry has never denied that there is a 30% probability that a slide may occur in that area over a 25 year period. Councilmember Dwyer said if the Council agrees with the Hearing Examiner's decision based on the covenants, then the issue is resolved. If not, he inquired if Mr. Hahn agreed that the issue should be remanded to the Hearing Examiner to discuss the issues that Mr. Hahn previously men- tioned. Mr. Hahn said if the Council agrees that a risk can be transferred from the City to an applicant, there is no mechanism within the UBC or the Code which allows the Building Official to sign the document. He said there would have to be some other instrument which would allow a building permit to be issued in such an instance, regardless of the high probability of risk. Mayor Naughten asked Mr. Hahn if he was stating that Building Official Hal Reeves could not sign the building permit based on the Hearing Examiner's decision. Mr. Hahn replied negatively. He said there is a factor of a high probability of slide in that area, and the Code states that a permit cannot be issued where there is a substantial risk of slide. Councilmember Dwyer clarified that the decision which was appealed by Mr. Thiry was the deci- sion of Mr. Reeve's not to issue a building permit. Mr. Hahn concurred. Councilmember Dwyer said he did not understand why a procedure exists of a decision rendered to issue a permit but the Building Official declining to do so. Mr. Hahn said procedure exists to analyze whether or not the proposal supports the issuance of a permit. He said the Hearing Examiner concluded that the evidence does support the issuance of a permit, but the Building Official disagrees. Building Official Hal Reeves said Staff felt they had to appeal the Hearing Examiner's decision because it contained numerous technical errors. Councilmember Dwyer asked Staff to assume that no appeal had been raised and the Hearing Examin- er's decision remained as was ruled on. Ile inquired if Staff would not issue a building permit. Mr. Reeves said he would not sign the building permit because he believes it is wrong to build on an unstable site without taking proper mitigating measures. Councilmember Kasper inquired if a 30% risk was acceptable. Mr. Reeves replied negatively. Councilmember Kasper inquired if adequate measures could be taken to stabilize the property. Mr. Reeves replied affirmatively. Councilmember Kasper inquired if the entire area could be stabi- lized. Mr. Reeves said measures could be taken by the property owners as a whole. He reminded the Council that the issue of stabilization was specific to the subject property. Mr. Reeves said Staff is appealing the decision to grant a permit to build a home in the Meadow - dale landslide area utilizing a conventional foundation system. He reviewed Mr. Thiry's geotechnical report as follows: "A large landslide which occurred in 1955 resulted in ground failure and displacement of five to ten feet vertically on a line which appears to traverse the site. Regardless of site development, it is quite possible that the subject site and adjacent areas may be involved in a large-scale slope failure sometime in the next several decades". Mr. Reeves said Mr. Thiry's engineer then proceeded to give design recommendations based, appar- ently, on Mr. Thiry's budget rather than recommend stabilization measures and structural design criteria on which the design team could base a definite prediction of a safety factor. Mr. Reeves noted that the Code prohibits issuance of a permit where the site is unsuitable for the plan submitted. Mr. Reeves said technology does exist to engineer both site and structure in such a manner that instability is minimized, and which the designers can confidently state a specific factor of safety. Jack Whitely, Civil and Structure Engineer, said he reviews plans for the City. Mr. Whitely said he does not make recommendations or disapprove or approve building permits. EDMONDS CITY COUNCIL MINUTES Page 9 NOVEMBER 18, 1986 Mr. Whitely explained that the factor of safety. is the .resisting force divided by the acting force. foe said the friction in the soil determines the factor of safety. Mr. Whitely said he walked along the site just below Mr. lhiry's property. There is a retain- ing wall made up of vertical railroad ties. The retaining wall is leaning outward, which indi- cates there is pressure against the wall. Mr. Whitely said he believes that a slide is occur- ring. There is evidence that the earth is creeping. He said measures could be taken which would help the subject property to have a factor of safety greater than 1.5. If measures were taken as a policy regarding the entire area, Mr. Whitely said each increment would tend to increase the factor of safety and help stabilize the area for construction. He said he supports Mr. Reeve's decision. Ms. McDonald said she believed that the Hearing Examiner was well aware of Mr. Whitely's role as the Plan Checker. She said Mr. Whitely was the only expert witness that was present on behalf of the City during the hearing before the Hearing Examiner. She said she asked Mr. Whitely if he believed that a permit should be granted, and he testified affirmatively. Ms. McDonald referred to Section 19.00.020 of the ECDC, "Earth Subsidence and Landslide Hazard Area, Building Permits". She said Section (D) specifically refers to the Meadowdale area. She said it appeared to her that Staff is asking Mr. Thiry to stabilize the entire Meadowdale area by virtue of a building code provision which is superseded by the section in the Code for the specific Meadowdale area. Ms. McDonald said there is clearly. a conflict. When a conflict occurs in the Code, the specific Code application should be applied. With regard to the Hearing Examiner interpretation of the hold harmless and indemnification agree- ment, Ms. McDonald said .the sections that Mr. Hahn referred to, which are incorrect, deal with the Hearing Examiner's Findings of Fact. The Hearing Examiner., under Conclusions, paragraph 3, specifically addressed the role of the hold harmless agreement and indemnification and the cove- nants, which Mr. Thiry testified he was willing to sign. Ms. McDonald said testimony was never given with regard to Mr. Thiry's budget. She said she does not believe Mr. Reeves is aware of Mr. Thiry's budget with regard to his proposal. Jon Koloski, Geo Engineers, 2405 - 140th Ave. N.E., Bellevue, said he has been involved with the Meadowdale landslide area for a number of years. He said he was the principal author :of a landslide hazard assessment investigation in 1979 and was subsequently retained by the. City of Edmonds to reevaluate the stability of the Meadowdale slide area on the basis of some improve- ments. Mr. Koloski said a landslide occurred in 1955 in the immediate area that Mr. Thiry chooses to apply for a building permit. The factor of safety at that time was less than 1. The slide re- sulted in damage to property and included two residences which were occupied at that time and still are. Mr. Koloski said he has explained in careful detail to Mr. Thiry the risk of building at t1le site he has chosen. He said there is nothing within reasonable practicability that can be done to prevent a massive landslide of the type that occurred in 1955. Mr. Koloski said there are several types of landslides which occur in the Meadowdale area but are inconsequential to the overall stability of the building site and rarely extend into the upland area to include the building. Mr. Koloski noted that the design prepared for Mr. Thiry's residence by his structural engi- neer and architect is not a conventional foundation. It is a very heavily reinforced foundation which is capable of sustaining major twisting and deflection without destroying the house. Mr. Koloski said he understands that the house can be taken loose from the foundation arid releveled if necessary. Mr. Koloski said it is his opinion that Mr. lhiry has gone through the process to do what he could to reduce the risk of landslide failure on the subject property and, in fact, his proposal will help stabilize the surrounding area by collecting water, excavating dirt from within the actual crawl space of tine home and removing it off the site, and removing the driving force. LDMONDS CITY COUNCIL MINUTES Page 10 NOVEMBER 18, 1986 Mayor Naughten noted that the time allotted for the hearing had expired. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER KASPER, TO CONTINUE THE HEARING TO JANUARY 6, 1987. Mr. Snyder suggested that Mr. Thiry and his attorney be consulted to ascertain if the date of continuance was amenable to them. Councilmember Dwyer said he would vote against the motion unless the Council consulted with Mr. Thiry. Councilmember Kasper withdrew the second to the motion. COUNCILMEMBER OSTROM MOVED, SECONDED. BY COUNCILMEMBER KASPER, TO CONSULT MR. THIRY AND HIS ATTORNEY TO ASCERTAIN IF THE DATE OF CONTINUANCE WAS AMENABLE TO THEM. MOTION CARRIED. Ms. McDonald said continuing the hearing would not be in their best interest at that point in time. She noted that she was finished with her presentation but did not know if the audience wished to speak. Councilmember Hall noted that no one was signed up to speak. Councilmember Dwyer inquired if there would be any prejudice to the applicant's presentation of the evidence or legal arguments if the hearing was continued. Ms. McDonald said she did not think further new evidence from the appellant should be allowed. Mayor Naughten noted that rebut- tal would be allowed. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO CONTINUE THE HEARING TO JANU- ARY 6, 1987. MOTION CARRIED. The meeting recessed at 9 p.m. and reconvened at 9:12 p.m. PUBLIC HEARING ON 19.87 BUDGET Mayor Naughten. opened the public hearing. Jim Riecken, 721 - 14th Way S.W., referred to page 21, Administrative Services, Item #51. He inquired if each city will be charged $1.25 per person annually to register. Councilmember Hall replied affirmatively. Mr. Riecken referred to page 112, Cemetery Improvement Fund. He inquired about the $15,000 to repair and restore headstones. Mayor Naughten said Staff will research the purpose of that expen- diture. No one else wished to speak. Mayor Naughten closed the public hearing. COUNCIL DISCUSSION OF RECOMMENDATION FOR 1987 BUILDING PERMIT FEES Community Services Director Peter Hahn reported that the Council adopted the non -fee provision - of the 1985 Edition of the Uniform Building Code (UBC) earlier this year. The 1985 Edition also proposed building permit and plan check fee increases of 47% over the existing fees. Mayor Naughten has recommended to spread the proposed increases over three years: no increase in 1986, half the increase in 1987, and the second half of the increase in 1988. The Community Services Committee discussed these fees at several meetings. Two representatives of the development community made comments on the proposal. The main issue .they raised was less related to the fee levels than the attitude of the Building Division toward Code compliance. They feel that by sending out plans to ICBO, the City is getting overly -detailed reviews of plans. They feel that plan checks are too rigorous and, therefore, too lengthy. The Departments feels that the UBC and the related codes should be properly applied.. Many, if not most, of the time delays are attributable to inadequate submittals and not to the process itself. Another issue that was raised was that with increased revenues, plan checks should be able to be performed with additional in-house staff instead of outside consultants. The Department's position is that it is reluctant to add permanent positions in an area with cyclical variation, and that people with special skills are hard to find. EDMONDS CITY COUNCIL MINUTES Page 11 NOVEMBER 18, 1986 e4 Mr. Hahn reviewed the permit fees for a typical 2,000 square foot house and other expenditures related to building permits, as well as the revenue pattern with the Council. Mr. Hahn noted that the ratio of expenditures to fees is 2:1. He said he thought the City should adopt a policy of a fee increase in relation to expenditures and the Consumer Price Index. Mr. Hahn noted that Redmond and Mercer Island have adopted a 47% increase, King County is pro- posing a 2.0% increase, and Auburn is considering a 47% increase. Councilmember Ostrom. inquired if those cities' building fees are comparable to Edmonds fees. Mr. Hahn said fees for those cities which utilize Table 3A are utilizing 1988 figures. Councilmember Wilson inquired about the ratio of expenditures to revenues for Redmond and Mercer Island. Mr. Hahn said Building Official Hal Reeves would be able to address that question but was not present at that particular moment. lie said King County has a consistent policy that 85% of the costs of permits are recovered by revenues. Councilmember Wilson inquired about the percentage of the City's recovery. Mr. Hahn said he would compute that information. Councilmem- ber Wilson inquired about the percentage of expenditures attributable to outside plan checkers. Mr. Hahn said that information was contained in the table under "Professional Services". Councilmember Kasper said it does not appear that the increase will occur over a three-year period but, rather, a two-year period. He said he felt the increase should occur over a five-year period. He noted that inflation is already built into the fee schedule, but the proposed fee increase is a "double entry". Mr. Hahn said the inflationary factor from 1981 to 1985.is not 11.9%, and the increases from 1980 to 1985 are not inflationary points. tie noted that expenditures have gone up at a much higher rate. Councilmember Kasper expressed concern that expenditures are increasing at four times the rate of inflation. Mr. Hahn said expenditures increase because of professional services. Councilmember Kasper said he felt that plan checks, for the most part, should be done in-house instead of retaining outside consulting agencies. Mr. Hahn said the City does not want to increase the staffing level because building activity is cyclical. He said it is difficult to instantaneously make staffing adjustments to permanent Staff; that is why outside plan checkers are retained. Also, outside plan checkers bear a level of expertise that the City would have difficulty compensating on a full-time basis. Councilmember Kasper expressed concern that the ratio of expenditures to fees were increasing. He noted that King County has not adopted an increase as earlier alluded to and is only consider- ing an increase. Mr. Hahn said plan checks are now being conducted on residential homes because: 1) property devel- opment has become more complex with very few standard level lots available, and 2) many homes that are currently being built are not reproducible homes that are constructed on a basic plan but are, instead, exceptional and more elaborate homes. Councilmember Ostrom inquired if an additional employee was added to Staff in 1986 to perform Building Division related duties. Mr. Hahn said a Code Enforcement Technician was hired but is not reflected in the above -mentioned budget. He said she is related to the Building Department only in that she has taken on the extraneous tasks that the Building Department personnel used to perform. Councilmember Ostrom said the proposed fee increase was totally logical. Councilmember Hall said it appeared to her that the professional services budget has increased by 500% from 1982 to 1983. She asked why. She questioned why it took six weeks to issue a building permit to a particular single residence that she was aware of. Mr. Reeves said the increase wits attributable to: 1) Building Code revisions of earthquake requirements in approximately 1982, and 2) outside plan checks were retained because it was discovered that in-house plan checking was inadequate. Councilmember Hall inquired if building permits could be issued more expeditiously. Mr. Reeves said some of the seismic codes are involved in single-family residences. He said there are a number of factors, i.e, elaborate design, poor soil conditions, that delay the process. Mr. Reeves reviewed the process involved in issuing building permits for a single-family resi- dence. rOMONDS CITY COUNCIL MINUTES Page 12 NOVEMBER 1B, 1986 Mr. Reeves said the City has only two building inspectors, wlio, as part of their duties, conduct plan checks. He said outside plan checkers must be retained because the City does not have ade- quate staffing to do all of the plan checks nor the structural engineering expertise for some of them. Councilmember Hall inquired if the professional services fee of $45,620 for 1986 would warrant the addition of another Staff member. Mr. Hahn said $45,620 in total costs equates to a salary of approximately $37,000 with benefits. He said that salary would not attract the level of exper- tise that the City obtains.from outside services. Mr. Reeves said the addition of another Staff member would .not necessarily guarantee timeliness because building is cyclical, and Staff must check the same standards that the ICBO and Jack Whitely do. He said better submittals will expedite the process. Councilmember Ostrom recalled that Staff argued in the recent past in favor of hiring the Code Enforcement Technician because they said building activity had increased dramatically. He noted that Staff now contends that the Technician is not directly related to the Building Department. Mr. Reeves said the Technician basically focuses on zoning matters. He said Staff, in the past, would set aside life safety matters to work on zoning matters, which was ethically wrong. Coun- cilmember Ostrom said his point was that expenditures have increased more than is reflected. Ms. Block concurred. Councilmember Kasper noted that there were people in the audience who attended the Community Services Committee meeting. He said they were invited to attend the Council meeting and offer their input. Mayor Naughten inquired if they were told that the Council meeting was a public hearing. Councilmember Kasper replied negatively. He said they were advised to address the Council if they wished to discuss the issue. Councilmember Ostrom said the discussion should be advertised as a public hearing if audience participation is allowed. Councilmember Jaech recommended that the discussion be continued as a public hearing on December 2, 1986. Mr. Snyder noted that the Council must take some action at the present meeting or the fees would automatically be imposed by the new 3A. table. He said he had drafted an ordinance that would continue the current fee in effect until action was taken by the Council. Councilmem- ber Jaech inquired if the Council could later amend the fees if it adopted the ordinance. Mr. Snyder replied affirmatively. COUNCILMEMBER JAECH MOVED, SECONDED BY COUNCILMEMBER OSTROM., TO APPROVE ORDINANCE 2588 WHICH IS THE ORDINANCE DRAFTED BY THE CITY ATTORNEY IN WHICH THE CURRENT FEES ARE CONTINUED5UNTIL SUCH TIME THAT THE COUNCIL REVIEWS THE FEES AT A HEARING IN JANUARY. Councilmember Dwyer inquired if public input should be allowed at the present meeting as well as input at the hearing. Councilmember Jaech said the Council may not recall comments made at the present time, noting that people in the audience would probably be in attendance at the hearing in January. MOTION CARRIED. The hearing was scheduled on January 6, 1987. COUNCILMEMBER JAECH SAID SHE WOULD INCLUDE THAT AS PART OF TH.E MOTION. THE SECONDER AGREED. BUDGET WORK SESSION Kathy Turner, Librarian, Geraldine Buchmeier, and Vic Schrock, Library Board members, were in attendance for discussion of a library request.. Kathy Turner, Librarian, 7605 - 206th St. S.W., submitted copies of the library furnishings budget request to the Council. She requested $4,500 for work room furniture. She said personnel have been utilizing old chairs and chairs similar to the chairs in the Plaza Room since the li- brary was relocated four years ago. Ms. Turner said the computer system has been automated and is located on the existing furniture. She said the necessity has arisen to buy computer tables. Councilmember Ostrom inquired about the purpose of the 30"x60" work desk. Ms. Turner said it is a computer table that will replace the standard rectangular study tables. FOMONDS CITY COUNCIL MINUTES Page 13 NOVEMBER 18, 1986 In the temporary absence of the Mayor, Councilmember Hall adjourned the meeting at 10 p.m. COUNCILMEMBER JAECH MOVED, SECONDED BY COUNCILMEMBER WILSON, TO EXTEND THE MEETING. MOTION CAR- RIED. Councilmember Ostrom inquired if the computer table was intended to be utilized for one person. Ms. Turner said it will accommodate three. people. Councilmember Ostrom inquired if the three 30"x60" tables would accommodate nine people. Ms. Turner replied negatively. She said one table would accommodate one person.. Councilmember Ostrom said he did not understand why one person needed a 30% 60" desk. Ms. Turner said the computer takes up a considerable amount of space, and the remaining space will be utilized as a work station. Ms. Turner showed a diagram of the ta- bles to the Council, which clarified the use. (A) RECOMMENDATION FOR PROGRAMMING PAYROLL/PERSONNEL SYSTEM Administrative Director Art Housler reported that Western Consulting Group is the firm that is programming the City's computer system. The programming will be completed by December 15, 1986 at an additional cost of $15,000 if the proposed contract he presented is approved. The purpose of the contract is to provide assurance that the programming will be completed by year end and at a certain flat -fee dollar amount. After the payroll/personnel system is installed and opera- tional (this is the last system to be installed by Western Consulting Group), there will be a $40 hourly charge for any changes/enhancements required by the City. Mr. Housler said there will undoubtedly be changes/enhancements. Mr. Housler said Staff is very pleased with the product thus far. Ile said he was very proud that Edmonds is the leader of possessing a complete system to any other comparable city in the area. Councilmember Kasper inquired what the dollar amount was- for the original contract. Mr. Housler replied $28,000. Councilmember Kasper inquired about the intent of the contract. Mr. Housler said the contract was entered into to do all of the programming, as well as change the system to an interactive distributing processing system. Councilmember Kasper inquired about the benefits of the new programming. Mr. Housler said the programming aids the payroll system, which he said has become very complex. Councilmember Hall inquired if the request was in the person's bailiwick who was upgraded two grades. She said it was difficult for her to justify upgrading a person and then supplement that position. Mr. Housler said the position was upgraded because a study revealed that that position was out of alignment in comparison to other cities, and not to perform the programming for the entire system. Councilmember Hall inquired about the source. of funding for $36,000. Mr. Housler referred her to page 20 of the budget. lie said the other source is the Water/Sewer fund. Councilmember Ostrom commented to Mr. Housler that perhaps the benefits of the new interactive payroll system were not evident to the other Councilmembers. Mr. Housler said it would be very time consuming to explain the computer terminology. He said that that information was reviewed with the Council when the hardware and software package was selected. Mr. Housler said he would be glad to explain the system once again if the Council so desired. Councilmember Wilson asked if the request would be the final request for programming. Mr. Housler replied affirmatively, with the exception of changes and enhancements. Councilmember Jaech noted that the Council was frustrated with the expenditure and movement of funds from one line item to another without first being made aware of it . She said discussions have taken place regarding the development of a procedure for Staff and the Council regarding transfers between line items. She recommended that the issue be discussed further in January and that the request before the Council be approved. COUNCILMEMBER JAECH MOVED, SECONDED BY COUNCILMEMBER HALL, TO AUTHORIZE THE MAYOR TO SIGN THE PROPOSED CONTRACT AND APPROVE EXPENDITURES OF $35,750 FROM THE GENERAL FUND AND $19,250 FROM THE WATER/SEWER FUND; THAT $3,250 BE BUDGETED FOR THE DATA PROCESSING DIVISION AND $1,750 FOR THE WATER DIVISION FOR 1987 FOR PROGRAMMING PAYROLL/PERSONNEL SYSTEM; AND TO SCHEDULE JANUARY 13, 1986.TO DISCUSS THE MOVEMENT OF FUNDS FROM LINE ITEM TO LINE ITEM. MOTION CARRIED. Councilmember Ostrom noted that he is involved in the computer business and is amazed that Staff had accomplished their objectives, given the amount of money allocated. He said Staff was doing a good job.. EDMONDS CITY COUNCIL MINUTES Page 14 NOVEMBER 18, 1986 Councilmember Wilson said ,it would behoove the Council' to become familiar with the computer sys- tem and to "get the system up to speed". (B) PROPOSED 1987 SALARY/BENEFITS FOR NONREPRESENTEO EMPLOYEES Personnel Manager Sharon 'Thatcher reviewed the proposed salary and benefit package for the City's 31 management and nonrepresented personnel, effective January 1, 1987, as follows: a 3% across- the-board salary increase and 3% adjustment to the salary ranges for all 31 employees; increase the face amount of the life insurance policy for the 31 nonrepresented employees from $6,000 to the amount of each individual's annual salary (cost: $3,747 not currently budgeted); increase the vacation accrual at each increment by one day per year for all 31 employees. (This aligns with all the union contracts, with the exception of Fire); increase the vacation accrual by five days for division managers only in each.of the first five years to aid in recruitment of applicants at these levels of management; increase maximum allowable sick leave accrual from 800 to 920 hours for all 31 .employees. (Payment on termination to remain at one-half of accrued hours to a maximum of 400 hours pay.) Councilmember Dwyer inquired if the five additional days of vacation for department directors and division managers is an added benefit. Ms. Thatcher replied affirmatively. Councilmember Hall inquired abo.ut the total cost of the proposal. Ms. Thatcher said direct costs are $36,928. Mayor Naughten noted that $33,000 is already budgeted. Councilmember Ostrom said in reviewing the Benefit Comparisons Data, it did not appear that life insurance was a typical benefit. Councilmember Kasper said it is not conmion that three week's vacation time is granted in the first year of employment, with the exception of top management positions. Ms. Thatcher said that request is only being made for the department director and division manager, which are considered to be higher level positions. Councilmember Dwyer inquired if an adequate candidate response has been unobtainable due to the lack of an attractive vacation package. Mr. Hahn said it would be difficult to attract a candi- date if he/she was under compensated financially as well as in benefits. Councilmember Dwyer inquired if the lack of vacation benefits has posed a problem. Mr. Hahn said the number of candi- dates applying for each particular position has not been very high. It was decided to discuss this issue further in the near future. (C) PROPOSED 1987 SALARY FOR CONTRACT MINUTES TAKER Councilmember Hall noted that a letter was received by the Council dated November 11, 1986 from the minute taker. She is requesting an increase in compensation. Councilmember Ostrom inquired what the present hourly rate of compensation is. City Clerk Jackie Parrett replied $10 per hour. Councilmember N.ordquist recommended that this issue be further discussed in the near future. Councilmember Wilson said he would like the Council to analyze all of the potential revenue sourc- es for the City. Councilmember Jaech inquired about the 1987 Budget regarding the Meadowdale project. Mayor Naughten said two $120,000 payments from Fund 125 have yet to be made. Mayor Naughten said upon final payment, the City will be "out of the Meadowdale project". Councilmember Jaech said $20,000 from the quarter percent sales tax should be available for the Civic Center Playfield. Community Services Director Peter Mahn said because $20,000 would not pay a fraction of the de- sign costs necessary to impl.ement the plan, Staff was hoping to complete the Meadowdale project and then take into consideration the plans for the Civic Center Playfield. Councilmember Jaech said Staff's goals and direction should not be arbitrary. She said several hearings and discus- sions had taken place regarding the Civic Center Playfield and a decision was reached. For rea- sons unknown, she said, the proposal was dropped. Councilmember Jaech said the public, as well as the Council, should be informed. Mayor Naughten said the field could not be financed for $5 to 6 million. The School District informed the City that no action was to take place unless the lease was renegotiated or the property was purchased. Mayor Naughten noted that that information has been publicly discussed. 1DMONOS CITY COUNCIL MINUTES Page 15 NOVEMBER 18, 1986 Councilmember Hall inquired about the status of the $74,000 savings in Fund 125 as a result of accelerated payments. She read a portion of the December 17, 1985 Council minutes regarding the Meadowdale Playfield project into the record. Mr. Hous.ler said the savings were attributable to the project and not the City of Edmonds. Ile said he was unsure if the savings were invested into additional amenities of the project. Councilmember Dwyer said it was his recollection that the $74,000 was an ultimate savings to the project which the City would realize upon completion. Councilmember Hall inquired if $20,000 ihas been saved 1986. Councilmember. Dwyer said no savings have been realized in 1986. Councilmem- ber Ostrom concurred.. Councilmember Ostrom said if additional funds are available, the City should invest them into the Civic Center Playfield. Mr. Hahn said a number of improvements have been made and will continue to be made. Councilmember Ostrom inquired about the status of the $20,00.0. Mr. Hahn said page 112 of the budget reflects the proposed projects which will be funded from Fund 125. He noted that it is the Council's prerogative to rearrange the schedule. Councilmember Jaech said she would like a written legal opinion from the City Attorney regarding the Civic Center Playfield lease. City Attorney Scott Snyder said Mayor Naughten had that docu- ment in his possession. Councilmember Kasper said salaries of City personnel should be analyzed. He said salaries have increased at a greater rate than inflation. Councilmember Hall inquired if Councilmember Kasper would like that issue to be a topic of discussion at the next budget work session. Councilmember Kasper replied affirmatively. Councilmember Hall noted that the next budget discussion was scheduled on December 9, 1986. She said Council.memb.ers could, at that time, discuss the items they wished to be included in the 1987 budget. Councilmember Nordquist raised a point of order. He asked what the date was that the budget was required to be approved. Mr. Snyder said the first public hearing must be held on or before December 1, 1986. Councilmember Nordquist inquired if there was a succession of meetings re- quired until the budget was approved. Mr. Housler requested direction from the Council regarding the budget meeting on December 9, 1986. The Council did not respond. In response to Councilmember Nordquist's question, Mr. Snyder said the first hearing must be held on or before December 1 and may continue up to December 25, 1986. The budget must be adopt- ed no later than December 31, 1986. MAYOR Mayor Naughten inquired about the Shell Creek project has officially been started. He said asked the Council to let him know if they were anyone who may be. Councilmember Ostrom asked berts said .it will review input as well as give Basin study. City Engineer Bob Alberts said the a Citizen Advisory Committee has been formed. He interested in serving on the committee or knew of what the function of the committee was. Mr. Al - direction.. Mayor Naughten noted that he received a letter from a delegate of Hekinan, Japan. The letter expressed the delegate's appreciation of the City and recognized it as an international attitude. Mayor Naughten said the City of Hekinan will discuss the possibility of a sister city relationship with the City of Edmonds this month. Mayor Naughten reported that 100 City employees pledged $6,500 for the United Way campaign in 1986 in comparison with $2,500 pledged in 1985 by 52 employees. Mayor Naughten referred to a letter from the Port of Edmonds. The Port is requesting the City to waive the fee for an application for a variance regarding the flagpole height. Mayor Naughten recommended that the Council discuss that issue at a public meeting. Councilmember Ostrom in- qui.red if the Port has applied for a variance. Planning Division Manager Mary Lou Block replied affirmatively. EDMONDS CITY COUNCIL MINUTES Page 16 NOVEMBER 18, 1986 1 COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO SCHEDULE A PUBLIC HEARING ON JANUARY 6, 1987 TO DISCUSS THE FEE WAIVER. MOTION CARRIED. COUNCIL Community Services Director Peter Hahn reported that letters of interest were solicited recently for the secondary treatment plant. Eight applicants have responded. He said Staff is recommend- ing that proposals are submitted in the first week of January. Councilmember Jaech said several Councilmembers have expressed interest in participating in the consultant selection process for secondary treatment. She said she thought it would be benefi- cial if the Council as a whole participated. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO INCLUDE THE COUNCIL AS A WHOLE IN THE CONSULTANT SELECTION PROCESS. MOTION CARRIED. Councilmember Jaech asked how many of the eight respondents will be interviewed. Mr. Hahn strong- ly recommended that five candidates be interviewed. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER WILSON, TO INTERVIEW FIVE CANDIDATES FOR THE SELECTION OF A CONSULTANT. MOTION CARRIED. COUNCILMEMBER KASPER MOVED TO SET JANUARY 13, 1987 AS A DEADLINE FOR THE SUBMITTAL OF PROPOSALS. THE MOTION DIED FOR LACK OF A SECOND. The interviews were scheduled on January 3, 10, and 17, 1987. Mr. Hahn suggested that January 1, 1987 be set as the deadline for the submittal of proposals. Councilmember Jaech noted that Staff has requested that an RFP be solicited to hire a financial consultant to review the City's bonding situation and act as a financial advisor regarding the secondary sewer treatment project. She recommended that that issue be discussed next week. Mr. Hahn said a different bond advisor will not be sought; independent financial advisors will be. Councilmember Jaech noted that Roberts A Shefelman is the City's bond council, and Yeasting R Associates. acts as the City's bond advisor. She said if the City feels they are not doing a satisfactory job, a different advisor should be sought to perform both services. She recommended that that issue be discussed prior to adjournment of the meeting or at a joint committee meeting next week. Councilmember Nordquist inquired if annexation for Sherwood Elementary School has been pro- cessed. Mayor Naughten replied negatively. fie .noted that he had given Hal Reasby the applica- tion on Monday. Council President Hall announced that Student Representative Tom Peterson arrived at the meeting late because he was initiated into the Torch Honor Society. Council President Hall inquired about the sign for the Council office at the Civic Center. Pub- lic Works Superintendent Bobby Mills said the sign has not been put up yet. Council President Hall noted that a reindeer is for sale by the Kiwanis Club in the Administra- tive Services Building. She said she did not feel that items should be sold in the administra- tive building by any one organization. •Mayor Na:ughten noted that the City..is not selling them, but there is a number to call if anyone is interested in.purchasing one. The meeting adjourned at 11:10 p.m. These minutes are subject to December 2, 1986 approval. d"_*� fy JAC UELINE G. PARRETT, City Clerk LARRY . NAUGHTEN Ma or EDMONDS CITY COUNCIL MINUTES Page 17 NOVEMBER 18, 1986