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11/17/1992 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES November 17, 1992 THESE MINUTES WERE APPROVED BY THE CITY COUNCIL ON NOVEMBER 24, 1992 The regular meeting of the Edmonds City Council was called to order at 7:00 p.m. by Mayor Laura Hall at the Library Plaza Room, 650 Main St., Edmonds. The Council Meeting was preceded by a 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 Rachelle Eshleman, Student Representative CONSENT AGENDA Councilmember Dwyer removed item (B) from the Consent Agenda STAFF Art Housler, Admin. Serv. Dir. Chuck Day, Accounting Manager Dan Prinz, Police Chief Bob Alberts, City Engineer Noel Miller, P.W. Superintendent Buzz Buzalsky, Fire Chief Rob Chave, Planning Manager Scott Snyder, City Attorney Rhonda March, City Clerk Barb Mehlert, Recorder Councilmember Kasper removed items (C), (D), (E), (F), and (G) from the Consent Agenda. COUNCIL - MEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO APPROVE THE BALANCE OF THE CONSENT AGENDA WHICH CONSISTED OF (A) ROLL CALL. MOTION CARRIED. APPROVAL OF MINUTES OF NOVEMBER 7 AND NOVEMBER 10 (Item (B) on the Consent Agenda) Councilmember Dwyer requested a correction to the draft minutes of November 10. Council President Palmer referenced a memo from the Council Assistant requesting an additional correction. COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER DWYER, TO APPROVE THE MINUTES OF NOVEMBER 7 AS SUBMITTED AND THE NOVEMBER 10 MINUTES WITH THE TWO REQUESTED CORRECTIONS. MOTION CARRIED. APPROVAL OF CLAIMS WARRANTS FOR WEEK OF NOVEMBER 9, 1992 (Item (C) on the Consent Agenda) Councilmember Kasper inquired on the outcome of a previous warrant which was pulled by Council President Palmer. Council President Palmer said the line item in question was payment for a new Lo, refrigerator for the Executive Office in the amount of approximately $547. Council President a+( Palmer said Staff informed him the old refrigerator was not in proper working condition, there- fore, a replacement was made which• consisted of a full size refrigerator rather than a under the counter model. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO APPROVE ITEM (C). MOTION CARRIED. REJECTION OF BIDS FOR THE 3RD AVE. N./MAIN ST. CURB REPLACEMENT PROJECT AND AUTHORIZATION TO• REBID THE PROJECT Item D on the Consent Agenda) Councilmember Kasper asked why The City is replacing curbs on 3rd Avenue if it is a State High- way. City Engineer Bob Alberts said the State is responsible for maintaining the street while the City is responsible for maintaining the curbs and gutters. Councilmember Kasper asked why City crews could not do the work, and Mr. Alberts said the City does not have the proper equipment to install the level of curbing that is being replaced. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCIL PRESIDENT PALMER, TO APPROVE ITEM (D) ON THE CONSENT AGENDA. MOTION CARRIED. FINAL ACCEPTANCE OF WORK BY LAKESIDE INDUSTRIES FOR THE NORTH MEADOWDALE ROAD WALKWAY PROJECT AND SETTING THE 30-DAY RETAINAGE PERIOD Item E on the Consent Agenda Councilmember Kasper asked what happens with the balance of the funds, as the bid is lower than the amount budgeted. Mr. Alberts said the funds will remain in the 112 Fund. Councilmember Kas- per asked if the budget deficit could be reduced by the difference in amounts, and Mr. Alberts replied negatively as they are 1/2 cent gas monies, and are earmarked for capital projects. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCIL PRESIDENT PALMER, TO APPROVE ITEM (E) ON THE CONSENT AGENDA. MOTION CARRIED. ZS alv- FINAL ACCEPTANCE OF WORK BY REFLECTION INDUSTRIES INC. FOR THE ANDERSON CENTER WINDOWS PROJECT AND SETTING THE 30-DAY RETAINAGE PERIOD Item F on the Consent A en a r �S COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO APPROVE ITEM (E) ON THE CON- SENT AGENDA. MOTION CARRIED. FINAL ACCEPTANCE OF WORK BY BYRNES CONSTRUCTION CO. FOR THE CEMETERY. BUILDING ADDITIONAL PROJECT AND SETTING HE 30-DAY RETAIN GE PERIOD Item G on the Consent A en a COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO APPROVE ITEM (G). MOTION CAR- RIED. Mayor Hall introduced and welcomed Student Representative Rachelle Eshleman, who is a senior at S �npW Meadowdale High School. AUDIENCE Natalie Shippen, 1022 Euclid Ave., said the following day, the Washington State Transportation Commission will be hearing a briefing on the Edmonds Terminal Property Acquisition. Ms. Shippen asked if the Ferry System is in the process of acquiring the Anderson Property. City Attorney Scott Snyder said the City of Edmonds has an option pending on the Anderson Property, which is ao(S set to close in the near future. Mr. Snyder said for the State to condemn and take the property �f k� would require authorization by the legislature. Ms. Shippen asked if is possible that the City could acquire the property only to have the State condemn and take the property, and Mr. Snyder Q J1A replied affirmatively. Ms. Shippen asked if the City is prepared to oppose the State's condemna- tion and acquisition of the property, and Mayor Hall said she and Council unanimously agree to oppose any State acquisition or condemnation of the Anderson property.. Bob Noak, 317 3rd Avenue, distributed informational materials to the Council relating to a Tempo- rary Certificate of Occupancy granted to an individual in close proximity to his home. Mr. Noak said the individual who was granted the Certificate has not complied with some of the require- ments necessary which include a landscape plan consisting of in part, a six foot fence and 12 foot trees on the property. Mr. Noak asked the Council to look into the matter. Councilmembers discussed the situation and requested a Staff report in December, which will then be placed on a Council Agenda in early December. REVIEW OF 1993 BUDGET DISCUSSION Mayor Hall read into the record, a memorandum she recently distributed to the City Council regard- ing budget revisions to the 1993 Cuts and Contingencies. In the memo, Mayor Hall identified a 2 potential new revenue source which was identified as a stormwater/utility charge on residential ` J and commercial properties. Mayor Hall said the charge is calculated on the square footage of impervious surfaces at a rate of $2.50 per month for equivalent dwelling unit. Mayor Hall said the City of Lynnwood is implementing this charge in 1993. Mayor Hall said if the City of Edmonds implemented the charge, it could be earmarked for drainage capital improvements and maintenance of streets related to drainage which could generate up to $440,000 a year in revenue. Mayor Hall also noted in her memorandum, that Staff has recently discovered that GTE has over billed the City $27,200 for the new telephone system in 1992 which will reduce expenditure projec- tions. Mayor Hall recommended that the Council use a 99% figure .for property tax revenue instead of the 95% which Council previously adopted. Mayor Hall said Staff has already made drastic cuts and implementing a $12,700,000 projected revenue for 1993, which the Council directed at the November 10 Meeting will be very difficult and will cut into services. Mayor Hall said in view of the drastic cuts all departments have had to make, it behooves the Council to assess their Finan- cial Emergency Fund and Council Contingency Fund. Mayor Hall said the memo provided to Councilmem- bers will take the place of a complete new preliminary budget book which would cost $600 plus substantial staff time. Council President Palmer called for a 10 minute recess to allow Councilmembers to review the information provided by the Mayor in her memo. The Council recessed at 7:30 p.m., and reconvened in Council Chambers at 7:40 p.m. With regards to the proposed stormwater/utility charge introduced by Mayor Hall, Councilmember Dwyer asked Mayor Hall if is proposed that the City tax at the rate of $440,00 per year which is the amount that is referenced on page one of the Mayor's memo, or is it proposed that the City tax at the rate of $350,000 a year, which is the amount of the General Fund Transfer that wouldn't have to be made. Art Housler replied the latter. With regards to the proposed stormwater/utility charge, Council President Palmer said in the Mayor's memo, it stated the monies collected from the proposed charge would go into the drainage capital improvements and maintenance of streets related to drainage, and said last week, the Council was asked to take money out of the 111 Fund because Staff said there were no drainage problems that were not being addressed in the City and there were no future drainage problems on the horizon to be budgeted for. Council President Palmer asked what has changed since last week's meeting. EDMONDS CITY COUNCIL APPROVED MINUTES Page 2 November 17, 1992 Art Housler said the scenario is that the $440,000 raised from the proposed charge, would go to the street fund for maintenance as well as the Capital Street Fund which is for any street projects including drainage, and that the City would not transfer $350,000 from the General Fund that is currently budgeted to the Street Fund for street maintenance. Councilmember Dwyer asked isn't Council President Palmer correct when he is saying that the pro- posed charge would send its money into Fund 111. Mr. Housler replied affirmatively and said the $350,000 is the transfer from the General Fund to the Street Fund for maintenance purposes. Councilmember Dwyer said the transfer would not then be made because the proposed charge would raise $440,000 which would go into Fund 111. Mr. Housler replied affirmatively and said $350,000 would go into Fund 111 (Street Maintenance) and $90,000 would go into Fund 112 (Capital Improve- ments). Councilmember Petruzzi said at last week's meeting, he was told by Noel Miller that the $130,000 was absolutely not needed in the Street Fund, and asked why Staff is proposing to tax citizens $440,000, if the money is not needed. Councilmember Petruzzi said he will not support a Contingen- cy Plan where the citizens will be asked to take on yet another tax. Councilmember Petruzzi said this type of Contingency Plan is not the answer to balancing the budget. Councilmember Petruzzi said he has not heard from citizens that they agree in taking on additional taxes to balance the City's budget. Mr. Alberts said it is his understanding what is being proposed tonight is in direct response to the actions taken by the City Council at their last meeting. Councilmembers Petruzzi disagreed and asked by taking out $128,00 from the Street Fund, how it relates to taxing the citizens $440,000. Mr. Alberts said it is a result of the Council being unwilling to accept the revenue projection for $13,000,000 and cut it to $12,700,000, and the Council's unwillingness to take $128,000 out of the reserves of Fund 111 without a stipulation of replenishment, even though the Council is told the City can live without that money. Councilmember Petruzzi said it is not correct in saying that since the Council adopted a $12,700,000 projected revenue instead of the the $13,000,000 projected revenue, that it means the Council asked Staff to tax citizens $440,000. Art Housler, Administrative Services Supervisor, said the real problem is the level that was set for the General Fund in the amount of $12,700,000, is going to take drastic cuts. Mr. Housler said $401,000 has been cut to date, and therefore, to balance the budget without making drastic cuts in City services, Staff provided the options included in the Mayor's memorandum. Councilmember Kasper there was much pressure at one time to form a Utility District, in which the City chose not to. Councilmember Kasper said the sewer fund is already supposed to have that revenue built in it, therefore, the citizens are already being taxed for drainage, and won't agree to taxing them again as proposed. Council President Palmer said Councils action of last week called for a reworking of the budget, with a revenue figure of $12,700,000, and requested a Contingency Plan that addressed the possi- bility that the projected revenue of $12,7000,000 would not come in. Council President Palmer said the Council never requested to include in a Contingency Plan, a new tax to the citizens, and said the idea of the new tax is a bad plan, and the Administration shouldn't think that the Coun- cil would adopt the proposed recommendation, especially in light of no input from the citizens. Council President Palmer referenced the Mayor's memorandum which itemized projected departmental cuts, and said the City Council is ready and willing to cut their budget by $10,000 which is up and above the projected departmental cuts listed in the memo. Council President Palmer said with cuts to the Council Budget, it will be one of the leanest budgets ever, even with transferring money for minute taking hours for the Council Resource Person. Council President Palmer said it is high time that the Budget be looked at from the perspective of the taxpayers. Council Presi- dent Palmer said the City cannot expect the taxpayers to continue to be taxed and taxed. Council President Palmer said if you look at future revenues, it only gets worse and said if revenues end up being more than $12,700,000, he would be happy, and the Council would then look at increasing expenditures, but only if that scenario were to take place. Discussion was held on the City's Financial Emergency Fund, and Councilmember Kasper said the Fund was set up in the event of a reduction of Federal Funding. Councilmember Petruzzi said the combination of the Council Contingency Fund and the Financial Emergency Fund equal $759,000. Councilmember Petruzzi said this puts the City with an approximate 6.25% emergency reserves, and noted the national recommendation is 5% to 8%. Councilmember Petruizzi said in the last 30 days, the City has experienced a shortfall of approximately $350,000, and noted that is approximately half of the emergency reserves. Councilmember Petruzzi EDMONDS CITY COUNCIL APPROVED MINUTES Page 3 November 17, 1992 said sales tax projections were 14% below projections in October, and equalization taxes were 18.5% below projections. Councilmember Petruzzi said the City has no way of knowing how long - this type of reduction will continue. Councilmember Petruzzi said if the Council sees in 1993, that the projections are ahead, and more tax is collected, the Council will be more than happy to increase expenditures. Councilmember Petruzzi expressed concern that the total Contingency fund only allows for a two to three month contingency where shortfalls could be covered. Councilmember Petruzzi said the Council has a clear cut concern that the City may not be able to meet statutory requirements. Councilmember Dwyer said the preliminary budget presented to the Council was already out of bal- ance by $300,000 before the Council ever had a chance to sit down and talk about it. Councilmem- ber Dwyer said it clear from listening to Council discussion, that the Council will not support an additional tax, and the reality is that it is not going to happen. Councilmember Dwyer said he has not. yet seen a budget with the $12,700,000 figure requested by the Council. Councilmember Dwyer said when the budget does come to the Council utilizing the $12,700,000 revenue figure, discussion can then take place about different options. Councilmember Dwyer said it is fair to say that what Staff is encountering is resistance from Council based upon the resistance of the Administration to deal with a $12,700,000 revenue figure adopted by the Council. Councilmember Dwyer said the focus needs to be placed on that revenue figure. Councilmember Earling referenced an Expenditure and Expenditure Projection chart for 1993 - 1994 in which Mr. Housler prepared. Councilmember Earling said if you look at the expenditure line between 1992 and 1994, it goes straight up and the. projected revenues basically stays the same. Councilmember Earling said there has to be an honest run at preparing a budget with a $12,700 pro- jected revenue as Council requested. Councilmember Earling said he is concerned with the long range financial situation for the Puget Sound Region. In regards to the expense of preparing a new budget book, Council President Palmer said existing budget books can be altered for Councilmembers so a new budget book is not necessary. Council President Palmer said the issue of the freeze on purchases needs to be addressed, as there are staff questions. Councilmember Nordquist said the intention of his motion last week was to freeze all purchases of new and old, and to freeze hiring. Councilmember Nordquist noted that the City Clerk advertised a bid in the Journal for a new police motorcycle and a piece of equipment for the Sewer Department, on November 9, which is a day before the motion was made, and would honor those purchases. Coun- cilmember Nordquist said other than that, all purchases and hiring is frozen until mid -December, so the Council can then review revenues. It was the consensus of the Council that Staff should submit, as previously requested, a revised budget utilizing a $12,700,000 projected revenue figure, to be included in next week's Council packet. PUBLIC HEARING ON 1993 BUDGET As no member of the public came forward on this issue, Mayor Hall closed the public hearing. REPORT ON NEW TELEPHONE SYSTEM Steve Perry, former Chairman of the former Telephone Selection Committee, reviewed the report on the telephone system. Mr. Perry noted that Staff has found that GTE has over billed the.City in the amount of $27,258 over the past year, and that GTE will be refunding that amount plus applica- ble sales tax. �•t� 5 Discussion was held regarding to when the City would realize labor in the savings receptionists' positions. It was noted that the Business License Clerk/Receptionist in the Executive Office is presently experiencing an an approximate 30% decline in phone calls. It was noted that other receptionist positions have increased their workload due to the direct dialing number to the various departments. Mr. Perry said the central switchboard still experiences a great number of calls due to the fact that the former central phone number was retained, and many people still rely on that number. Mr. Perry reported that the number of calls have actually increased in vari- ous departments because more people are now able to get through. Councilmember Dwyer said previously Staff reported to the Council that the central receptionist position would experience an approximate 50% decrease in phone calls and because of the decrease in phone calls, the duties in that area would increase, and Councilmember Dwyer asked what plans have been made in that area. EDMONDS CITY COUNCIL APPROVED MINUTES Page 4 November 17, 1992 City Clerk Rhonda March, said the receptionist does have business licensing duties, as well as assisting in backup for the entire executive office. Ms. March said it is difficult to add many duties due to the lack of equipment and the physical position of the receptionist work station. As this was a discussion only, no action was taken. UPDATE ON DRAFT REGIONAL TRANSIT SYSTEM PLAN Rob Chave, Planning Manager, said the Draft Regional Transit System Plan and its accompanying Draft Environmental Impact Statement (DEIS) are out for review. Mr. Chave said he would like Council comments on this, as the City has only until the end of November to comment on the DEIS. Mr. Chave said he will. take Council comments/concerns and incorporate into a formal response. Mr. Chave said his concern is there may not be adequate discussion or programming for the support- ing infrastructure that 'would have to support such a transit system. Mr. Chave referenced a'dia- C� gramed in the Draft Summary Regional Transit System Plan, and said it appears there is a lack of definition in the diagram relating to Snohomish County, but noted the great amount of detail for other parts of the region. Mr. Chave noted that in part, the Draft EIS is saying it is .at a planning level, rather than a project level, and more detail will come with time. Councilmember Earling said this is purely at a planning level, however, noted there is a concert- ed push to include a Blue Cross area terminal, which would go down Highway 99 through Aurora Village and said there is a lot more activity, politically, going on right now, to make that happen then there is for it to go down the I-5 Corridor. Councilmember Earling said he would like to see the concerns he listed in a previous letter to the JRCP incorporated into Mr. Chave's formal response. Council President Palmer said he would like to list as a concern, the need to change zoning densities around stations in order that they could be economically feasible. Councilmembers discussed their concerns and Mr. Chave said he would incorporate them into a for- mal letter. Mr. Chave said the letter would be included in their November 20 Council packet for their review and/or approval. MAYOR Mayor Hall referenced a letter from the City Attorney regarding the Cable Television franchise. Mayor Hall said she now serves on the Cross Sound Transportation Investment Program. Mayor Hall said she recently attended a Mayor's meeting in Everett, in which Mary McCumber of the Puget Sound Regional Council presented a speech. COUNCIL Council President Palmer welcomed the new student representative, Rachelle Eshleman. Council President Palmer reminded Councilmembers that tomorrow night, there will be a Edmonds/Lynnwood ?rea "Save Our Community" meeting.in the Edmonds School District Board Room. Council President Palmer referenced the memo from the the City Attorney concerning the Cable TV Franchise, in which they have requested a negotiation of the franchise that ends December 31,1993. Gt_. As Council President Palmer requested a change to the format of the.Agenda Memo form used by k9J departments for Council packets, COUNCIL PRESIDENT PALMER MOVED, SECONDED BY COUNCILMEMBER KAS- 0 PER, TO REDESIGN THE AGENDA MEMO FORM SO THAT IT INCLUDES INFORMATION RELATING TO THE SOURCE OF FUNDING FOR THE EXPENDITURE. MOTION CARRIED. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCIL PRESIDENT PALMER, TO ALSO ADD TO THE AGENDA FOR- MAT, STAFF'S ESTIMATE, IF IT IS NOT THE SAME AS THE AMOUNT BUDGETED. MOTION CARRIED. Councilmember Petruzzi distributed and discussed information regarding Edmonds Visitors Bureau expenditures. Councilmember Earling referenced a memo he previously sent the Council regarding the proposed Commuter Rail, and said it is receiving many positive remarks. Councilmember Earling said a pre- sentation will be made at the December 10 Council. Meeting to discuss and review the proposed Commuter Rail subject. Mayor Hall adjourned the meeting at 9:35 p.m. As City Engineer Bob Alberts, had one more item for Council consideration, COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO RECONVENE THE MEETING. MOTION CARRIED. EDMONDS CITY COUNCIL APPROVED MINUTES Page 5 November 17, 1992 Mr. Alberts said he recently met with the Port Manager Bill Stevens, and said some repairs need to be made below the Fishing Pier where the Pier rests amongst the rocks, which are deteriorat- ing. Mr. Alberts said it is in the City's best interest to do some repair work now at a low cost, while the Contractor is at the Breakwater at the Pier and already has permits in place to do the work. COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, TO FUND $2500 OUT OF THE 125 FUND FOR REPAIRS TO THE FISHING PIER. MOTION CARRIED. At 9:40 p.m, Mayor Hall adjourned the meeting. THE OFFICIAL SIGNED COPY OF THE MINUTES, AS WELL AS A PERMANENT RECORDING OF ALL COUNCIL MEETINGS CAN BE FOUND IN THE CITY CLERK'S OFFICE. W WA AWA bJ,.A /ice_ / all, am laura'�k, City Clerk EDMONDS CITY COUNCIL APPROVED MINUTES Page 6 November 17, 1992 AGENDA EDMONDS CITY COUNCIL PLAZA MEETING ROOM - LIBRARY BUILDING 7:00 -10:00 p.m. NOVEMBER 17, 1992 CALL TO ORDER FLAG SALUTE. 1. (15 Min.) CONSENT AGENDA ITEMS (A) ROLL CALL (B) IAPPROVAL OF MINUTES OF NOVEMBER 7 AND NOVEMBER 10, 1992 (C) APPROVAL OF CLAIMS WARRANTS FOR WEEK OF NOVEMBER 9, 1992 (D) REJECTION OF BIDS FOR THE 3RD AVE. N./MAIN ST. CURB REPLACEMENT PROJECT AND AUTHORIZATION TO REBID THE PROJECT (E) FINAL ACCEPTANCE OF WORK BY LAKESIDE INDUSTRIES FOR THE NORTH MEADOWDALE ROAD WALKWAY PROJECT AND SETTING THE 30-DAY RETAINAGE PERIOD (F) FINAL ACCEPTANCE OF WORK BY REFLECTION INDUSTRIES, INC. FOR THE ANDERSON CENTER WINDOWS PROJECT AND SETTING THE 30-DAY RETAINAGE PERIOD (G) FINAL ACCEPTANCE OF WORK -BY BYRNES CONSTRUCTION CO. FOR THE CEMETERY BUILDING ADDITION PROJECT AND SETTING THE 30-DAY RETAINAGE PERIOD 2. AUDIENCE 3. (15 Min.) REVIEW OF 1993 BUDGET DISCUSSION 4. (15 Min.) PUBLIC HEARING ON 1993 BUDGET 5. (30 Min.) REPORT ON NEW TELEPHONE SYSTEM 6. (30 Min.) UPDATE ON DRAFT REGIONAL TRANSIT SYSTEM PLAN 7: (5 Min.) MAYOR 8. (15 Min.) COUNCIL 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)