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08/25/1992 City CouncilFINAL COPY APPROVED BY CITY COUNCIL 9/1/92 EDMONDS CITY COUNCIL MINUTES WORK MEETING FINAL ADOPTED VERSION August 25, 1992 The work meeting of the Edmonds City Council was called to order at 7:OO-p.m. by Mayor Laura Hall at the Library Plaza Room, 650 Main St., Edmonds. All present joined in the flag salute. PRESENT Laura Hall, Mayor Jeff Palmer, Council.President Steve Dwyer, Councilmember Dave Earling, Councilmember Michael W. Hall, Councilmember William Kasper, Councilmember John Nordquist, Councilmember Tom Petruzzi, Councilmember Jim Cooper, Student Representative CONSENT AGENDA STAFF Art Housler, Admin. Srvc. Dir. Buzz Buzalsky, Fire Chief Dan Prinz, Police Chief Noel Miller, P.W. Superintendent Brent Hunter, Personnel Manager Wally Tribuzio, Asst. Chief Scott Snyder, City Attorney Rhonda March, City Clerk Barb.Mehlert, Recorder Item (B) was removed. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCIL PRESIDENT PALMER, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The approved items are as follows: (A) ROLL CALL (C) APPROVAL OF CLAIMS WARRANTS FOR WEEK OF AUGUST 17 AND PAYROLL WARRANTS FOR AUGUST 20, 1992. (D) AUTHORIZATION TO CALL FOR BIDS FOR THE 242ND STORM DRAINAGE PROJECT (E) REPORT ON QUOTES TO PURCHASE A USED VEHICLE TO REPLACE UNIT #16 FOR THE PLANNING DIVISION AND AUTHORIZATION TO PURCHASE FROM THRIFTY CARS SALES ($9,725.00) (F) AUTHORIZATION FOR TERMINATION AND RELEASE OF EASEMENTS FOR TOP FOODS APPROVAL OF MINUTES OF AUGUST 18,1992 Item (B) on the Consent Agenda Council President Palmer said he would abstain from voting on the Minutes, as he was not present for the meeting. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCIL PRESIDENT PALMER TO APPROVE ITEM (B). MOTION CARRIED with Council President Palmer abstaining. REVIEW AND EVALUATE THE INCLUSION OF THE FUNDING OF THE PUBLIC WORKS FACILITY INTO THE PROPOSED h ,,( BOND ISSUE from Finance Committee 8 11/92 Art Housler, Administrative Services Director, introduced Dick Ehlers, Vice President, Seattle Northwest Securities Corporation, who is the City's Financial Advisor on bond issues. Mr. (A Housler introduced Lee Voorhees, from Foster, Pepper and Shefelman, who prepares all the legal documentation. Mr. Housler said the City Council Finance Committee scheduled this subject after their discussion on August 11. The purpose is to determine if construction of a new public works facility should be included in the pending bond issue. According to Dick Ehler's analysis, the Combined Utilitys' share (55%) could be funded by increasing the water rates in 1993 by 4% and 1% in 1994. These rate increases are exactly what Mary Hughes advised the City Council would be needed in order to fund the project. With regards to funding for the City's general operations, (street, equipment, building and grounds maintenance) Mr. Housler said this is much more difficult given the slow economic environ- ment, and said there are only a few funding sources available: 1) Utilize the existing 1/4% Real Estate Excise Tax; 2) Levy an additional 1/4% Real Estate Excise Tax, and; 3) Increase utility tax to 6%. Mr. Housler said there have been 190 cities that have levied the first 1/4% tax and 37 cities who have levied the second 1/4%. During the Council Finance Committee discussion, there was a concern as to whether regularly scheduled projects could still be funded. Mr. Housler said in reviewing this with Bob Alberts, City Engineer, they concluded that all regularly schedule projects would be funded, and Mr. Housler illustrated for the Mayor and Council, the projects and associated costs. Mr. Housler said the Council Finance Committee recommended to go ahead with the refunding and the funding of the amount that is owed to the City of Lynnwood. Mr. Housler said these two items were placed on the Council Agenda on August 18, and was approved by Council to proceed with the paperwork. Mr. Housler said he would now like a consensus from Council on whether the Proposed Bond Issue should include funding for the Proposed Public Works Facility., Dick Ehlers evaluated the effect of financing the utility's share of the proposed Public Works facility, along with the recently authorized refunding and Lynnwood payment bond issue. Mr. Ehlers reviewed the executive summary of Exhibit 1, contained within the Council packet. Exhibit 1 illustrated the debt service coverage and annual revenue available for utility capital projects, along with detailed schedules showing the cash flow of the utility. Councilmember Petruzzi asked Mr. Ehlers to review the time line with the Council. Mr. Ehlers said the City should be ready to market the bond issue in mid -September, specifically, the week of September 14. Mr. Ehlers said that date could be pushed back a little bit, due to the fact that the City will have to hold a public hearing on a water rate and utility tax increase. Mr. Ehlers strongly recommended the City have the rate increase in place before the bond issue is taken to market. Councilmember Petruzzi said there is roughly three million dollars more in total costs to the City that has not been anticipated and asked how the Utility Fund, specifically the proposed water rates could be okay in light of this unanticipated debt. Mr. Housler reviewed the wa- ter/sewer utility condition with the Council and said he is confident of the position of the water/sewer utility including the combined improvement/construction fund. The City Council discussed the existing 1/4% Real Estate Tax and a possible additional 1/4% Real Estate Tax. Councilmember Kasper said the City has already made the commitment that the existing 1/4% Real Estate Tax is to be used for allocation of parks facilities and waterfront property only. Councilmember Kasper said if the Public Works Facility is needed and has to be built, the City should be able to go to the public. After discussing the issue, it was the consensus of the Council not to impose the additional 1/4% Real Estate Tax as a source of raising revenue. Council - members felt the cost of homes in Edmonds is already high and by imposing the additional tax, would further drive up those costs. It was noted that five cities in Snohomish County have levied the additional 1/4% Real Estate Excise Tax including Lake Stevens, Bothell and Mukilteo. Council President Palmer said with the slow economy, he doesn't feel the public can withstand another tax placed upon them. Councilmember Kasper said the City has not actively pursued annexations, which would have settled a large part of capital items. Councilmember Kasper said he feels the City should look into the possibility of going to the public for funding of the Public Library. Councilmember Kasper said he feels the City should fund all that can be funded in the bond issue. Councilmember Petruzzi agreed. Council President Palmer said there is a tentative hearing on water rates scheduled for September 1, and asked the Council if that should remain on the agenda or be removed. It was the consensus of the Council to hold the public hearing on increasing water rates and utility taxes to fund the Public Works Facility. Councilmember Kasper said the Public Works Facility has an integral rela- tionship to the water rates and feels the water rates should reflect that. With regards to the water rates, it is noted that Mary Hughes, Water Rate Consultant, previously recommended a higher water rate increase than the Council previously adopted. The Council said at the time of adoption of the last water rate increase that if the City decided to construct the Proposed Public Works Facility in the future, they would then discuss the possibility of increas- ing the water rates to the recommendation of Mary Hughes. The Council said they would not raise the water rates to the recommendation until that time, as they felt a higher rate increase was not justified. As the Council now recommends moving forward on the proposed Public Works Facility in light of the low interest rates, it was the consensus of the Council to hold a public hearing with the purpose of increasing water rates and utility taxes for funding the Public Works Facili- ty. The hearing was scheduled for September 1, 1992. It was the consensus of the Council to move ahead with the Proposed Public Works Facility and to include the funding of the Public Works Facility into the Proposed Bond Issue due to the excel- lent interest rates. It was noted the interest rates have not been this low in 14 years. As the City bought the land on 220th for the Public Works Facility several years, ago, the Mayor and Council felt now was the time to begin construction of the facility. EDMONDS CITY COUNCIL APPROVED MINUTES Page 2 August 25, 1992 Bob Yeasting, of Yeasting & Hughes Associates, the City's Municipal Advisor, distributed a news- letter to the Mayor and City Council. The newsletter contained information regarding the Bond Buy- er's Index of Municipal Bond Interest Rates. Mr. Yeasting said now is an excellent time for bor- rowing for new projects. Councilmember Earling said he is concerned over the cumulative effect on the City's budget. Coun- cilmember Earling said his biggest concern is the City would go out to taxpayers at a later date and ask for additional taxes. Councilmember Earling said the City needs to look at the bigger picture due to upcoming labor negotiations and a diminishing revenue side of the General Fund. Councilmember Nordquist said the City should divide the construction of the proposed Public Works Facility into phases, first concentrating on the essentials of the Facility. Councilmember Hall felt this was drive up the cost. Councilmember Dwyer asked Mayor Hall what she would like to see happen. Mayor Hall said she is in favor of increasing the water rates and utility tax for the purpose of funding the Public Works Facility and felt the public hearing on September 1 was moving in the right direction. It was noted that Mr. Ehlers would be present during the public hearing on September 1. At 8:29 p.m, the Mayor and Council recessed for a two minute break and reconvened at 8:31 p.m. PRE -BUDGET DISCUSSION FOR 1993 BUDGET PARAMETERS Art Housler, Administrative Services Director, asked for input from Councilmembers concerning the budget parameters. ►?� Sidlilouncil. President Palmer said primary, above all, the City is in a "hold the line on spending" 1s LDS economy. Council President Palmer said the City's ending cash balance has to be fully funded, and would not like them to be redistributed in the course of re -doing the budget, as happened last year. Council President Palmer said AWC and others believe the General Fund alone should have a reserve that equals a six month operating budget. Council President Palmer said as line items change with the budget, the narratives should reflect those changes, so that the narratives match the line item. Council President Palmer said he does not want to see the high profile community items such as the flower baskets and park maintenance cut from the budget. Council President Palmer said it is totally up to the Mayor in how she prepares her budget, but would like to see each department explains their priorities for the year so the Council can see how they fund towards those priorities. Council President Palmer said if a department is asking for a Capital Expenditures, they should also account for the operating and associate costs of the purchase. Council President Palmer said he would like to see the budget contain some funds to fund more community requests. He would also like to see enhancement/beautification projects aimed at the commercial areas of the City, as these areas provide revenues for the City. Councilmember Dwyer said he would like a Saturday or evening session dedicated in October for the purpose of reviewing the personnel organization of the City. Councilmember Petruzzi agrees with the "hold the line on spending" which Council President Palmer brought up, and said it may be even more than holding the line. Councilmember Petruzzi discussed the possibilities of re -organization within the City and potential job loss throughout the City. His concerns are with the City's anticipated growth and revenue of only 2-1/2%. Mayor Hall said that City employees are working hard as is and noted the City has saved a good deal of money through job transfers and job vacancies. Councilmember Petruzzi said he is not intending to say that City employees do not work hard, however he is saying they may have to work even harder. Councilmember Earling said some cities are facing the reality of job loss and noted the City of Seattle is now facing an additional $10 million dollar shortfall and laying off many City employ- ees. Councilmember Earling said the City has to be cautious in budgeting for the next year in all areas. Councilmember Earling agreed with Council President Palmer in not cutting high profile projects, such as the flower baskets. Councilmember Earling said a project such as the flower baskets brings in more people to the City, who in turn spend money. EDMONDS CITY COUNCIL APPROVED MINUTES Page 3 August 25, 1992 With regards to the flower baskets, Councilmember Kasper said the program was intended to expand for the Centennial Celebration only, however, has continued to remain at that level since then. Mayor Hall said she would like to make sure each department has the opportunity to present their budget status and requests to the Council.. Councilmember Kasper said there are some positions within the City which are funded with outside revenues, in which the revenues will no longer be available. At 9:00 p.m., Student Representative Jim Cooper left the meeting. The Council set the date of September 22 as the date for Council review of personnel positions and organization for budget purposes. The regular work meeting previously scheduled for this date was changed to September 29. The Council set the date of Saturday, November 7, as the date for a Council Workshop on the 1993 Budget. The time will be from 8:30 a.m. to 12:30 p.m., in the Community Services Conference Room. INDIVIDUAL COUNCIL REPORT/UPDATE ON RESPECTIVE BOARD MEETINGS In light of the Executive Session following the meeting, Councilmember Nordquist suggested combin- ing this topic with the Council portion of the Agenda. Councilmembers concurred. Councilmember Earling referenced a memorandum he sent to Councilmembers regarding key decisions being made on regional transit issues in the next few weeks and updated the Mayor and Council. Councilmember Earling said in his opinion, there are two potential private passenger transit system which are not addressed at all, which he feels deserves more consideration: 1) Looking at the Burlington Northern line as a rail system, and 2) Using busses for high capacity transit movement. With regards to Item 1, Councilmember Earling said Burlington -Northern has expressed interest in this option. Councilmember Earling feels the entire regional transit project is being driven completely by Metro, and he is dissatisfied with the way it has progressed. Councilmember Dwyer updated the Council on SnoCom/Medic 7 issues. Councilmember Dwyer said SnoCom/Medic 7 has essentially stopped doing business in the Fire District portion that is now Mukilteo. He said the budget impacts of this will be known in the next few weeks. Councilmember Petruzzi brought up the recent Taste of Edmonds. Councilmember Petruzzi said he has �U S� had many discussions with citizens who live in the bowl area, and said the concerns range from ® �5 outright outrage due to the noise and crowds to the other side where people were very complimenta- tp ry. Councilmember Petruzzi said he feels it is important that the Chamber does an assessment of 0 the Taste and said the the citizens should be allowed to meet with the Chamber to voice their opinions. Councilmember Nordquist updated the Council on Health District issues. Councilmember Nordquist said at an earlier meeting he discussed the possible budget impact due to new government regula- tion on the disposal of street sweepings. Councilmember Nordquist said that the government has not taken any action as of yet, therefore, should not impact the budget at this time. Councilmem- ber Nordquist said the Health District has recently re-classified all of the District's employee positions. Councilmember Nordquist said it was very successful and said the City of Edmonds should consider doing the same. Councilmember Nordquist said it is his recollection that the Council should be discussing in the near future, the issue of the abbreviated City Council Minutes. It was noted the Council set a C`+ ���,� six month time frame in which the Council Minutes would be prepared in an abbreviated form. At C'a,, �e5 the end of the six months, the Council would decide whether the minutes should remain abbreviated '�tA, or revert to the former lengthened version. Council President Palmer said he would place this on I"A an upcoming Council Agenda. Councilmember Nordquist referenced a recent article in the paper where County Councilmember Peter Hurley is suggesting that Opticom devices be placed on Community Transit busses. Councilmember Nordquist said he would like to know what the impact would be to the City of Edmonds should this happen. Councilmember Nordquist said Opticom devices already exist on police and fire vehicles within the city, and does not support Opticom devices being installed on the busses. Mayor Hall said there has already been one Staff assessment meeting held regarding the Taste of Edmonds. EDMONDS CITY COUNCIL APPROVED MINUTES Page 4 August 25, 1992 npt' Mayor Hall said the Transportation Commission is still trying to operate in a vacuum, and said �Y she has contacted Mayor Sullivan from the City of Mukilteo for the purpose of signing a joint �� ISSN letter requesting that the City of Edmonds of Mukilteo have a place on a steering committee the Commission is settinq up. Councilmember Kasper suggested Mayor Hall contact Aubrey Davis on the Commission prior to writing the letter. Mayor Hall referenced citizen letter of complaint concerning the train whistle during the late night/early morning hours. Council President Palmer said he is not surprised the Transportation Commission is proceeding in their normal way of doing business. Council President Palmer said it might be,appropriate for both cities to have a representative on the steering committee rather than one. He said if the Commission decides that neither city will have a place on the Committee, it may be an appropriate j` time for the two cities to form a separate task force. 0�1``o Regarding the Post Office project notification in Council packets, Council President Palmer said it appears the re-route is through the Post Office Property and said at this time, that is an k unpaved portion. He is concerned with who would be liable for an accident on the property. Mayor Hall said she would get further information from Staff. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER KASPER, TO EXCUSE COUNCIL PRESIDENT PALMER'S ABSENCE OF AUGUST 18, 1992. MOTION CARRIED. Councilmember Hall reported on Health District Issues. Councilmember Hall said the tuberculosis epidemic is on the rise once again, and explained the process of what steps the Health District must go through when a person is found to have tuberculosis. Mayor Hall recognized a boy scout in the audience, and asked him to come forward with his name and troop number. Mr. Chris Henderson, from Troop 838 said he was present to earn a merit badge. The Mayor and Council welcomed Mr. Henderson. At 9:35 p.m., the Mayor and Council recessed to an Executive Session to discuss labor negotia- tions. Following the Executive Session, which ended at 10:35 p.m, Mayor Hall adjourned the meet- ing. A PERMANENT RECORDING OF ALL COUNCIL MEETINGS, AS WELL AS THE OFFICIAL SIGNED COPY OF THESE MIN- UTES IS ON FILE IN THE CITY CLERK'S OFFICE. Laura al yor R onda J. March, City Clerk EDMONDS CITY COUNCIL APPROVED MINUTES Page 5 August 25, 1992 AGENDA EDMONDS CITY COUNCIL PLAZA MEETING ROOM - LIBRARY BUILDING 7:00 -10:00 P.M. AUGUST 25, 1992 WORK MEETING CALL TO ORDER FLAG SALUTE 1. CONSENT AGENDA ITEMS (A) ROLL CALL (B) APPROVAL OF MINUTES OF AUGUST 18, 1992 (C) APPROVE CLAIMS WARRANTS FOR WEEK OF AUGUST 17 AND PAYROLL WARRANTS FOR AUGUST 20, 1992 (D) AUTHORIZATION TO CALL FOR BIDS FOR THE 242ND STORM DRAINAGE PROJECT (E) REPORT ON QUOTES TO PURCHASE A USED VEHICLE TO REPLACE UNIT #16 FOR THE PLANNING DIVISION AND AUTHORIZATION TO PURCHASE FROM THRIFTY CARS SALES ($9,725.00) (F) AUTHORIZATION FOR TERMINATION AND RELEASE OF EASEMENTS FOR TOP FOODS 2. (60 Min.) REVIEW AND EVALUATE THE INCLUSION OF THE FUNDING OF THE PUBLIC WORKS FACILITY INTO THE PROPOSED BOND ISSUE (from Finance Committee 8/ 11192) 3. (60 Min) PRE -BUDGET DISCUSSION FOR 1993 BUDGET PARAMETERS 4. (10 Min:) INDIVIDUAL COUNCIL REPORT/UPDATE ON RESPECTIVE BOARD MEETINGS 5. (5 Min) MAYOR 6. (15 Min.) COUNCIL 7. EXECUTIVE SESSION ON LABOR NEGOTIATIONS THE PUBLIC IS INVITED TO ATTEND PARKING AND MEETING ROOMS ARE ACCESSIBLE FOR THE DISABLED (An Interpreter for the hearing Impaired is available with 24 hours advance notice to the City Clerk at 771-0245)