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11/15/2011 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES November 15, 2011 The Edmonds City Council meeting was called to order at 7:01 p.m, by Mayor Cooper in the Council Chambers, 250 5`h Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Mike Cooper, Mayor Strom Peterson, Council President Steve Bernheim, Councilmember Michael Plunkett, Councilmember Lora Petso, Councilmember Adrienne Fraley- Monillas, Councilmember ELECTED OFFICIALS ABSENT Diane Buckshnis, Councilmember D. J. Wilson, Councilmember ALSO PRESENT Alex Springer, Student Representative 1. APPROVAL OF AGENDA STAFF PRESENT Al Compaan, Police Chief Stephen Clifton, Community Services /Economic Development Director Phil Williams, Public Works Director Shawn Hunstock, Finance Director Carrie Hite, Parks & Recreation Director Carl Nelson, CIO Rob English, City Engineer Jeff Taraday, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder Council President Peterson requested the addition of a 15- minute executive session regarding potential litigation with no action following as Agenda Item 15. COUNCILMEMBER FRALEY - MONILLAS MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED UNANIMOUSLY. 2. APPROVAL OF CONSENT AGENDA ITEMS COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 1, 2011. . C. APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 7, 2011. D. APPROVAL OF CLAIM CHECKS #128678 THROUGH #128801 DATED NOVEMBER 3, 2011 FOR $278,271.03. APPROVAL OF CLAIM CHECKS #128802 THROUGH #128932 DATED NOVEMBER 10, 2011 FOR $682,552.70. APPROVAL OF THE REISSUANCE OF PAYROLL CHECK #50907 FOR THE PERIOD OCTOBER 1, 2011 THROUGH OCTOBER 1.5, 2011 . IN THE AMOUNT OF $943.66 AND PAYROLL DIRECT DEPOSIT AND CHECKS #50908 THROUGH #50933 FOR THE PERIOD OCTOBER 1.6, 2011. THROUGH OCTOBER 31, 2011 . FOR $629,969.89. Edmonds City Council Approved Minutes November 15, 2011 Page 1 E. ACKNOWLEDGE RECEIPT OF A CLAIM FOR DAMAGES FROM LYNN WALLACE ($602.25) AND SANDRA S. HACHLER ($1,569.18). F. AUTHORIZATION FOR MAYOR TO SIGN ADDENDUM NO. 1 TO THE FACILITIES LEASE WITH CLEARWIRE LLC, FOR AN ADDITIONAL FIVE YEARS. G. AUTHORIZATION TO APPROVE A SEWER AND STORM EASEMENT FOR INSTALLATION OF A SEWER MAIN FOR THE 2012 SEWERLINE REPLACEMENT PROJECT. H. AUTHORIZATION TO APPROVE AN EASEMENT FOR INSTALLATION OF WATERMAIN FOR THE 2012 WATERLINE REPLACEMENT PROJECT. I. MARINA BEACH BNSF LAND LEASE. J. AUTHORIZATION FOR THE MAYOR TO SIGN THE EMERGENCY INTERTIE AGREEMENT BETWEEN SEATTLE PUBLIC UTILITIES AND THE CITY OF EDMONDS. K. AUTHORIZATION TO CONTRACT WITH JAMES G. MURPHY TO SELL SURPLUS CITY VEHICLES. L. ORDINANCE NO. 3856 — ELIMINATE THE COUNCIL CONTINGENCY AMOUNT IN THE GENERAL FUND. M. RENEW TOWING CONTRACTS 3. SMALL BUSINESS SATURDAY PROCLAMATION. Mayor Cooper read a proclamation declaring November 26 as Small Business Saturday in Edmonds. He thanked Community Services/Economic Development Director Stephen Clifton for coordinating this with the Small Business Center and the Chamber of Commerce. He urged the public to support small businesses throughout Edmonds. 4. AUDIENCE COMMENTS Al Rutledge, Edmonds, reported the Carol Rowe Memorial Food Bank served 490 people today which is the most they have served in a day. Families were able to sign up today for Christmas toys; the next opportunity to sign up is Tuesday, November 22. He announced the food and toy drive at Top Foods in Edmonds on November 18 -20. He encouraged the public to support the food drive. Don Hall, Edmonds, reported at their October 19 meeting, the Economic Development Commission (EDC) was provided an update on Westgate and Five Corners; the UW has submitted draft form based codes. The draft codes will be provided to the EDC and following the EDC's review, the draft codes will be presented to the Planning Board. The EDC also discussed the Five Corners roundabout; several members reported their seemed to be opposition from the neighborhood and education was needed. Staff informed the EDC of an adjustment to the strategic planning process schedule and the second retreat will occur after the first of the year. With regard to fiber, the EDC was informed progress is dependent on the availability of IT staff. Adding resources to the budget for IT has been discussed with the Mayor and the Finance Committee. The EDC Tourism Subcommittee is working on 3 -on -3 basketball tournaments and the City is working with various tourism groups due to the State's elimination of its Tourism Office. Darrol Haug provided the EDC a report regarding the potential to generate $450,000 /year in revenue by Edmonds City Council Approved Minutes November 15, 2011 Page 2 charging for non - transport EMS responses. Other cities do this; like transport fees, insurance would be billed. The EDC forwarded this proposal to the Public Safety Committee. The EDC's next meeting is Wednesday, November 16; the public is encouraged to attend and provide comment and ideas. Jack Bevan, Edmonds, requested the Council consider amending the plastic bag ordinance. He distributed plastic bags to the Council that were printed with, "the plastic used in this bag will convert to water, carbon dioxide, and biomass in the presence of soil, heat, moisture and oxygen. Like a fallen leaf, it will disappear over time." He requested merchants have the choice to offer this type of bag which the current ordinance does not allow. He summarized there is progress being made in recyclable plastic bags. 5. DISCUSS 2012 BUDGET Finance Director Shawn Hunstock displayed an Executive Summary — Current Forecast which summarized General Fund total revenue and total expenditures in the Mayor's preliminary budget (page 261 of the budget book), corrections to the 2012 budget and carry - forwards from 2011, and 2012 decision packages. The summary also contained the ending fund balance in the Mayor's preliminary budget with corrections and carry- forwards and decision packages. The carry - forwards from 2011 are for the compensation consultant contract and the strategic plan contract. Corrections to the 2012 budget include increased funding for ESCAISERS ($3,522), increased elections funding ($35,000), increased unemployment funding ($20,000), and funds for an Animal Fund ($300). Mr. Hunstock explained this agenda item was an opportunity for Councilmembers to propose amendments; for example he recalled a suggestion to allocate funds for the Aerospace Alliance. The Chamber has submitted a request for assistance with the 4`t' of July event ($5,000) and there has been discussion regarding funding the B Fund (Vehicle Replacement) contribution. Mr. Hunstock explained the spreadsheet is interactive and can be updated as amendments are proposed. Councilmember Plunkett asked about decision packages versus Council- proposed amendments. Council President Peterson responded he did not receive any specific amendments from Councilmembers other than several ideas forwarded by Councilmember Petso. This agenda item was intended to be an opportunity for Councilmembers to proposed amendments and decision packages can certainly be discussed. Adoption of the 2012 budget is scheduled on next week's agenda. Mayor Cooper clarified the decision packages were included in the budget book but are not included in the dollar amounts in the budget. Any decision packages the Council wishes to include in the 2012 budget will need to be adopted as amendments. The corrections Mr. Hunstock reviewed are items that have been discovered since the 2012 budget was prepared. The decision packages are items proposed by staff that he did not include in the Mayor's preliminary budget so that the Council could decide whether to include them in the 2012 budget. Councilmember Bernheim referred to the agenda memo for this item which states revenue: $66,752,974 and expenditures: $70,759,377. Mr. Hunstock advised that was taken directly from the 2012 preliminary budget and represents the total revenue in all funds and total expenditures for all funds. Councilmember Bernheim clarified this agenda item is not limited to the General Fund. Mr. Hunstock agreed. Mayor Cooper clarified this agenda item is discussion regarding the entire 2012 budget. Councilmember Plunkett asked whether the decision packages were in priority order. Mayor Cooper commented some of the decision packages in Parks such as mower replacements were in the 2011 budget but not included by the City Council. Much of the IT decision package is related to a public records /document management system to update the City's system. Edmonds City Council Approved Minutes November 15, 2011 Page 3 IT Decision Packages • Finance Software Updates and Additions Initial Costs — one -time cost: $56,705 • Finance Software Updates and Additions, Maintenance — ongoing: $9,300 • 30 Year Right of Use on Fiber to County — one -time cost: $66,000 CIO Carl Nelson explained the decision package includes updates to the EDEN finance software. The update would allow citizens to make utility payments using browsers other than Internet Explorer, allow the City to accept credit card payments, facilitate changes in merchants fees that will save the City $25,000- $50,000, allow for employee access to the Human Resources system to query current benefits levels which will eliminate some calls to the Human Resources Department, and allow for implementation of online timesheets. Mayor Cooper asked Mr. Nelson to describe the benefits of the 30 -year Right of Use on fiber to the County. Mr. Nelson explained the current proposal is part of a larger package for the 911 center, Snohomish County and cities. A cash lump sum payment within the first three years will result in discounted access to fiber over a 30 -year period, an Irrevocable Right of Usage (IRU). The total is $300,000; originally 7 cities agreed to participate. Due to the economic downturn, 2 -3 cities have pulled out and as a result the proposed amount is not as attractive as it was when 7 cities were participating. Councilmember Petso relayed her understanding that the City had fiber access via a system running through Seattle. She asked what fiber system this was and why did the City need to buy into it. Mr. Nelson answered this is the fiber that connects the 911 system. The City currently has fiber from the City to the County; there is no cost for the next 2 years. At the end of that time, the City will begin paying $500 -$600 /month for that connectivity. That connection is also the backbone of the video arraignment system. The number of cities participating will determine the cost; the decision to participate will be made as cities approve their budgets. If another city declined to participate, he would not recommend Edmonds participate because the cost would be too high. Council President Peterson asked if this was a lower priority than the other Admin decision packages. Mr. Nelson answered it was. Parks & Recreation Decision Packages Parks & Recreation Director Carrie Hite reviewed the decision packages, explaining they are in priority order: • Landpride Pull Behind Mower — one -time cost: $17,144 Large mower used for ball fields, current mower is 14 -years old, is metal rusting out, and needs to be replaced. • Parks Street Tree Maintenance Costs The maturation of street trees requires frequent trimming. Staff has reacted to business and residents' complaints rather than proactively trimming trees. Trimming is often contracted out due to limited staff and equipment and the unanticipated cost is not included in the budget. • Class Software at Yost Pool — initial cost: $8,675 Class Software allows people to register on line and for staff to track classes, revenues, participants, etc. The City does not have a module for point of sale at Yost Pool. The current process is money is collected at the cash register, a receipt is handwritten and Park staff reenters the information. The module would allow that information to be entered at point of sale, increasing efficiency. • Class Software at Yost Pool — maintenance: $1,642 Ongoing maintenance of software module • Walker Riding Mower — one -time cost: $17,500 Edmonds City Council Approved Minutes November 15, 2011 Page 4 Current mower used at cemetery is old and not as efficient as it could be. Funding recommended from Cemetery Fund 130. • Cemetery Seasonal Staff — ongoing: $5,000 There are a number of deferred maintenance issues such as painting, sanding, cleanup, fencing repair, etc. There is currently one staff member allocated to the cemetery who meets family members, sells plots, digs, etc. A seasonal person would assist with mowing during summer /fall. Funding recommended from Cemetery Fund 130 Councilmember Petso asked whether the Landpride Pull Behind Mower could be funded from the 511 Fund. Ms. Hite advised funds have not been allocated to the Equipment Replacement Fund for mowers. She planned to research budgeting that allocation in the future. Councilmember Petso asked whether the cost of the mower and seasonal staff for the cemetery had been compared to contracting for that service. Ms. Hite answered it had not. Council President Peterson recalled in the past the auditor suggested a better system be developed for accepting money at Yost Pool. He asked whether the Class software would address that issue. Ms. Hite answered it would. The current process requires two staff members for quality control; point of sale software would allow the information to be captured by the system. Council President Peterson clarified the software would reduce the number of people required. Ms. Hite agreed, advising it would integrate Yost Pool into the recreation system. Council President Peterson inquired about the cost savings. Ms. Hite answered it would save some part -time staff hours during the season. With regard to Councilmember Petso's question about contracting for mowing at the cemetery, Mayor Cooper suggested staff research and report to the Council on the actions that must take place with regard to labor negotiations before the City could contract out maintenance work at the cemetery. Public Works Decision Packages Public Works Director Phil Williams reviewed decision packages: • Pedestrian Signal Head Upgrade — one -time cost: $36,000 There is no established revenue source for pedestrian countdown timers at the City's 19 signalized intersections. The countdown timers are a state requirement. • Fuel Station Upgrade — one -time cost: $10,000 Upgrade to the fuel dispensing system at the Public Works yard where all City vehicles are fueled. Software, hardware and sensors are 20 years old; they do not function well and are no longer supported. The new software would improve monitoring of the dispensing and reconciliation of fuel usage. Approximately $300,000 in fuel is dispensed via the system annually. City Clerk's Office • Public Records/Document Management System — one time: $30,000 • Public Records/Document Management System — ongoing: $68,700 City Clerk Sandy Chase explained the City currently uses a system purchased in 1993 to manage records. The system has worked well but it is limited and the current available technology far exceeds the current system's capabilities. Each year it becomes more difficult due to the nature of records and records requests. She is currently able to electronically search for some paper records using key words that lead her to the paper copy which may be located in an office file cabinet or may require a trip to an archive center. She is able to electronically search approximately 15 years of City Council minutes; however the 100 years prior require physically researching /reviewing the paper copies. In order to better serve the Edmonds City Council Approved Minutes November 15, 2011 Page 5 public and City departments, the next most important building block is an electronic document management system as proposed in the decision package. In addition to the system, a contract person is proposed for one year to develop and implement the system. The system will serve all departments, not only the City Clerk's Office. Councilmember Plunkett asked whether the contract staff would be only for one year. Mr. Nelson answered the intent is to spend the year bringing the system up. The 2012 City Clerk's Office budget also includes a part -time person. He anticipated at the end of the year it will be apparent whether the person will transition to assisting part -time or full -time or if he/she will no longer be needed. Mayor Cooper pointed out the 2011 budget included a full -time person to assist with public records; that person was not hired due to the hiring freeze. The 2012 includes a 0.5 FTE to assist with public records. Councilmember Plunkett pointed out the decision package information indicates an annual salary in future years. Mr. Nelson responded it could be only one year. Mr. Nelson reiterated a decision would be made with regard to staffing at the conclusion of the one -year pilot project. Councilmember Bernheim asked whether a more limited scope decision package could be developed to address concerns in the City Clerk's Office but not require continuing salary and benefits. Mr. Hunstock explained the decision package is implemented by including it as an amendment to the preliminary budget. It would only be adopted for 2012 and would not require permanently funding that position beyond 2012. The intent was a contract person for a one -year pilot and before the year expires, determine whether permanent staffing is required. If permanent staffing is necessary, that would be presented as a budget amendment at the end of 2012. Councilmember Bernheim commented he was not inclined to support an undetermined program. He was more likely to support a short -term, limited solution with a limited cost that would accomplish something valuable for the City Clerk's Office. He was unwilling to add this to the General Fund budget without a corresponding reduction. Mayor Cooper offered to work with the City Clerk to provide more details. The intent is to hire a contract person to implement the system. There is a 0.5 FTE in the budget to assist with records management regardless of whether the software is purchased. If the Council approves the purchase of the software, a contract person is also required to implement it. Council President Peterson clarified the $65,000 decision package is listed under salaries and benefits and not professional services. He asked if that was the 0.5 FTE. Mayor Cooper explained the 0.5 FTE is included in the 2012 budget regardless of the Council's approval of the public records /data management system decision package. Council President Peterson suggested if the intent was a contract person that the cost be reflected in professional services rather than salaries. Councilmember Fraley- Monillas pointed out the decision package also includes benefits. Student Representative Springer asked whether an employee could be hired under the hiring freeze. Mayor Cooper answered the hiring freeze is administrative; the Council can approve positions and it is ultimately up to the Mayor to determine whether to fill the positions. For Councilmember Plunkett, Mr. Hunstock explained the amounts shown in blue (Mayor's Budget Total Revenue and Total Expenses) on the Executive Summary — Current Forecast are taken directly from the preliminary 2012 budget. Changes to those amounts will be due to corrections and carry - forwards for the 2011 budget, decision packages and /or Council amendments. The preliminary 2012 budget is balanced with a $43,322 surplus. Increases /decreases to the budget will impact that surplus. Edmonds City Council Approved Minutes November 15, 2011 Page 6 Councilmember Plunkett referred to the line entitled "change in ending fund balance" on the Executive Summary — Current Forecast. Mr. Hunstock explained that amount is the decision packages and corrections and carry- forwards, net against the $43,000 surplus for a deficit of $316,000. Councilmember Plunkett pointed out this spreadsheet did not illustrate the total ending balance. Mr. Hunstock agreed this was only the difference between budgeted revenues and expenses. Councilmember Plunkett expressed interest in seeing how the ending fund balances would be affected if all the decision packages were approved. He referenced the forecasting model that contains the ending working capital balance and includes all reserves. Mr. Hunstock offered to add that for next week's discussion. He intentionally did not include that because the working capital is not the same as reserves, cash, or fund balance. He summarized the Executive Summary — Current Forecast does not include the carry- forward beginning fund balance, reserves or cash; it is only the difference between budgeted revenue and budgeted expenses. Councilmember Petso explained the reason tonight's material was not presented with the working capital number was the resistance of the Finance Committee to looking at that number. If the decision packages are approved, the reserve will be approximately $316,000 less than it is currently. Councilmember Plunkett clarified he would like to see how the 5 -year forecast was impacted. He suggested Councilmembers Petso and Buckshnis and Mr. Hunstock determine how best to present that information. Councilmember Petso asked the impact of eliminating the $66,000 decision package for fiber. Mr. Hunstock advised it would reduce the deficit of $316,000 to $247,000. Councilmember Plunkett asked whether an updated 5 -year forecast could be provided based on amendments. Mr. Hunstock answered he could update the 5 -year forecast in the preliminary 2012 budget with the corrections and carry- forwards and decision packages. Student Representative Gibson asked about a deficit budget. Mr. Hunstock explained the Executive Summary — Current Forecast does not include the City's reserves. The negative $247,000 would be funded by fund balance, essentially the City's bank account or cash reserve. The fund balance is intended to cover temporary differences between revenue and expenses. Councilmember Plunkett commented it is important to illustrate how amendments affected the fund balance. It is not as if the money is not there, but it is a dwindling source. Mayor Cooper explained the preliminary budget reflects $43,000 more in revenue than expenditures. Each item that is added begins to reduce the ending balance of a one month reserve. Council President Peterson invited Councilmembers to propose amendments. He mentioned a few weeks a desire to include funding for police radios. He has since spoken with Police Chief Compaan who assured him at least for this year there are funds available in the B Fund to update the radios. Therefore, he will not be proposing that amendment and does not plan to propose any amendments other than possibly some of the decision packages. Councilmember Petso explained she developed a short list of potential amendments which she discussed with Mayor Cooper and Council President Peterson yesterday. She was not inclined to vigorously pursue any of the proposed amendments except for a text change to the contingency fund which Councilmember Buckshnis is preparing. The text change would ensure funds in the contingency are spent for the purpose the contingency was established and that the Council is notified when expenses are paid. Councilmember Bernheim recalled Mayor Cooper proposed the 2012 budget as the minimum necessary, barebones budget. The decision packages are optional. With the exception of short term relief for the City Edmonds City Council Approved Minutes November 15, 2011 Page 7 Clerk's Office, he was inclined not to add to the barebones budget. He preferred to continue to squeeze whatever possible from the annual appropriations and have funds leftover at the end of the year if possible. Mayor Cooper explained the Governor plans to propose cuts to the State budget next Monday and the Council is scheduled to adopt the budget on Tuesday. Depending on what the legislature adopts as a result of their special session, the City could lose over $250,000 next year due to the Governor's plans to pursue capturing the liquor profit dollars from cities, a reduction of approximately $500,000 a year. The Governor's proposal is to make some of the reductions in the liquor profits in June /July 2012. . The numbers in the preliminary budget and the Executive Summary do not include any cuts the legislature may approve in the special session or the 2012 legislative session. He summarized it appears the Governor and legislature are inclined to balance the state's budget on the backs of cities and counties. Council President Peterson agreed with Councilmember Bernheim's comments but supported the amendment for the records management system and upgrades to the EDEN software. He pointed out one of the Council's biggest frustrations has been financial reports; it is important to upgrade that system to make the information more readily available. He concluded although the budget is tight, those are wise expenditures. Council President Peterson requested Councilmembers submit amendments so that they can be included in next week's packet. 6. 2011 NOVEMBER BUDGET AMENDMENT Finance Director Shawn Hunstock explained page 278 of the Council packet contains a summary of the effect of budget amendments on the adopted budget by fund. The sum of all the budget amendments results in a decrease in revenue of $45,000 and an increase in expenses of $364,000 for a total change to the General Fund of $410,000. The Council packet contains two versions of the ordinance, one that includes the B Fund contribution and another that does not include the B Fund contribution. Council President Peterson asked Mr. Hunstock to comment on the benefit of funding the B Fund in 2011. Mr. Hunstock explained the City's budget is currently projected to have a surplus at the end of 2011 of approximately $600,000. That will be impacted by the amendments in this ordinance. The Council can choose to use some of the current year surplus to fund the B Fund contribution. The City can generally get by for two years without funding the B Fund contribution; any longer than that impacts the actual replacement of vehicles and equipment. The 2012 budget does not have funding for the B Fund contribution. If the B Fund contribution were funded in 2011, the Council could choose not to make the contribution in a future year. Councilmember Bernheim asked the deadline for adopting the budget amendment. Mr. Hunstock answered it must be adopted by the end of the year. Councilmember Petso inquired about the $600,000 surplus that could be used to fund the B Fund contribution. Mr. Hunstock advised the estimate in the preliminary 2012 budget projected a surplus for 2011 of $680,000. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER PETSO, TO ADOPT ORDINANCE NO. 3857, THE VERSION THAT INCLUDES MAKING THE B FUND CONTRIBUTION, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 3831 AS A RESULT OF UNANTICIPATED TRANSFERS AND EXPENDITURES OF VARIOUS FUNDS, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. Edmonds City Council Approved Minutes November 15, 2011 Page 8 Council President Peterson was confident the amendment had been vetted by the Finance Committee. It is appropriate to fund the B Fund contribution this year while the funds are available and give the City a little breathing room while the economy stabilizes. He was hopeful the B Fund contribution could be made again at the end of 2012. Councilmember Petso provided assurance the Finance Committee reviewed the amendment in detail at their meeting last week. Some of the Finance Committee's suggestions were incorporated into the amendment. She was satisfied everything in the amendment had been approved by the Council, intended or was required to reflect reality over the course of the year. THE VOTE ON THE MOTION CARRIED UNANIMOUSLY. 7. CHANGE ANIMAL BENEFIT FUND TO AN ANNUAL APPROPRIATION. Finance Director Shawn Hunstock explained this ordinance amends Edmonds City Code Chapter 5.05 that established the Animal Benefit Fund. This was never established as a separate fund according to accounting definition; it was set up as an account within the General Fund. There is approximately $3,500 in the account. The ordinance closes that out into fund balance and it becomes part of the City's reserves. One of the adjustments to the 2012 budget is an annual $300 appropriation to fund the intent of the Animal Benefit Fund. There has been no use of the fund this year other than a reimbursement last week of approximately $50. It may be used more often if residents were aware it was available and if necessary the appropriation could be increased beyond $300 /year. Councilmember Plunkett asked how the fund reached this dollar amount. Mr. Hunstock responded the amount originally appropriated receives interest each year. The minimal use of the original amount has been offset by interest and the total amount has not changed over time. Councilmember Plunkett asked whether the original funds were donations. Mr. Hunstock was not certain. If that is the case, a fund could be created via a 2012 budget amendment. Councilmember Plunkett recalled himself and 5,000 people over the objection of the City Council created a fund to assist with spay and neuter of animals. He created a political action committee to run a campaign to gather the 5,000 signatures on a petition. He thought the remaining money from that fund was placed in the Animal Benefit Fund. It was his impression the fund would generate interest and be self- sustaining. The intent of the funds was to offset the cost of spay /neuter of a pet that could be adopted at that time for approximately $20. The cost to adopt a pet now is approximately $100 because the shelter must provide medical care and have it spayed/neutered. Councilmember Plunkett asked whether $300 /year would be sufficient. Mr. Hunstock answered $300 is a good initial estimate. There has been no use of the fund this year until last week. If use of the funds increase in the future, a budget amendment can be proposed in 2012 to increase the amount. Councilmember Plunkett trusted the Council to recognize this is as a worthy cause and to provide additional funds if necessary. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO ADOPT ORDINANCE NO. 3858, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE ANIMAL BENEFIT FUND PROVISIONS OF ECC 5.05.127.2; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes November 15, 2011 Page 9 8. PRESENTATION OF STUDY TO UPDATE THE CITY'S GENERAL FACILITIES CHARGES FOR UTILITIES BY CITY STAFF AND THE FCS GROUP. Public Works Director Phil Williams recalled during the 2011 budget deliberations, Councilmember Petso commented the City's General Facilities Charge (GFC) seemed quite low. He agreed the City's GFCs were low compared to other cities and a $25,000 decision package was developed and approved by the City Council to hire the expertise necessary to adjust the GFCs. The City hired FCS Group who had just completed the water and stormwater rate study. He referred to a report, General Facilities Charge Study Update, prepared by FCS Group and provided to Councilmembers. Mr. Williams explained what a GFC is: • Also known as System Development Charges, Connection Charges, and Capital Facilities Charges • These are called Connection Charges in ECC Chapter 15 • Fee imposed on new or expanded connections to City utilities or systems • Designed to promote equity between existing and new customers so that growth pays for growth With regard to the methodology, Mr. Williams explained the consultant recommended and staff agreed it was appropriate to use an integrated or average cost calculation method. New development pays an average share of existing and future facilities spread over the current and projected ratepayers that the system will serve. This approach assumes that existing and future customers are equal beneficiaries of both the current and future system and, therefore, existing and future customers should equally share the burden of financing all system facilities. Under this method, the connection charge is calculated by dividing the existing and future cost basis by the total system capacity to be served. As an example, Mr. Williams provided a spreadsheet of water customer classes and number of accounts by meter size and meter equivalency factor and meter capacity equivalent for each meter size. The standard, a meter equivalency of 1, is a 3/a -inch meter which is typically used for a single family home. The system currently has approximately 21,000 meter equivalents installed. Next he displayed a spreadsheet illustrating the expected customer growth during the planning period through 2030 resulting in approximately 23,000 meter equivalents at the end of the planning period. Fire protection only customers are removed from that calculation because they do not exert a demand on the system, leaving approximately 14,000 non -fire meter equivalents at the end of the planning period. Mr. Williams also displayed a list of existing water asset values since 1949 that is used to determine the cost basis of the current system. The value is determined by the year of the investment and the amount spent plus an adjustment for interest (prevailing rate) for the ten years after the investment was made. Investments made by a developer or funded by a grant are not included in the calculation. Mr. Williams displayed a spreadsheet of water CIP projects through 2029 that is used to calculate the future cost basis. He provided the GFC calculation for water, advising the calculation method is the same for stormwater and sewer: • Existing Cost Basis = $28.1 million • Future Cost Basis = $46.5 million • Future customer basis = 14,772 • ($28.1M + $46.5M)/14,772 = $5,050/Equivalent Residential unit (ERU) GFC He described the existing and new GFCs: Utility Existing New Water $ 908 $ 5,050 Sewer $ 730 $ 4,417 Storm $ 428 $ 799 Total $2,066 $10,266 Edmonds City Council Approved Minutes November 15, 2011 Page 10 Mr. Williams acknowledged the difference between the existing GFCs and the new, explaining it has been a decade since the GFCs were updated. He provided a comparison of other utilities: Single Family (3/4" Meter) Jurisdiction Water Sanitary Sewer Storm Drainage Olympic View WSD $3,586 $1,453 N/A Shoreline WD $3,424 N/A N/A Ronald Sewer N/A $1,257 N/A City of Kirkland $9,133 $3,056 $481 City of Redmond Varies $8,626 to $11,216 ** $2,500 $958 City of Issaquah $10,031 $2,063 $789 NE Sammamish WSD $4,425 $3,590 N/A Northshore UD $2,500 $7,000 N/A Alderwood W &WW D* $2,063(3/4 ") $1,375(5/8 ") $4,132 N/A Mountlake Terrace $4,110 $4,080 $245 City of Edmonds (exist) $908 $730 $428 City of Edmonds (proposed max) $5,050 $4,417 $799 Next steps include: • Staff provide a recommendation • Public discussion • Approve a rate ordinance to implement changes Mr. Williams suggested consideration be given to phased implementation over three years and a CPI adjustment every 5 years. Council President Peterson asked how the GFCs are charged. Mr. Williams answered a GFC would be collected when a permit is issued for a house on an existing platted lot that has not previously been developed. In the case of redevelopment, the applicant would only pay the difference between the fee charged for the original project and the new fee. Council President Peterson recalled the Council approved a requirement to sprinkler new construction of a certain square footage. He asked whether applicants were given a break on that part of the fee. Mr. Williams agreed that would be appropriate; for example, if an applicant installed a 1 -inch meter instead of a 3/a -inch meter for the express purpose of a sprinkler system, he suggested they only pay for one ERU rather than 2�/2 ERUs. Council President Peterson offered to schedule public comment at a future meeting. 9. AUTHORIZATION FOR MAYOR TO SIGN ADDENDUM NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH CHS ENGINEERS LLC. City Engineer Rob English explained this agenda item is an amendment to CHS Engineer's contract for nine sewer lift stations. The project was identified as part of the 2006 Sewer Comprehensive Plan. The Plan identified several stations built in the 1960s, 1970s and early 1980s for upgrade and replacement. Lift station 7 -8 has been completed and lift station 2 is nearly complete. In July 2009 the City hired CHS Edmonds City Council Approved Minutes November 15, 2011 Page 11 Engineers to design a project for 9 lift stations. The project has now reached 95% design and staff plans to advertise the project for construction in 2012. This amendment covers three substantial components: 1) Additional design work that arose over the past two years in the amount of approximately $45,000. 2) Right -of -way support, easements for construction in the amount of $7,000. Staff has been working with property owners to secure easements; condemnation may be necessary to secure the easements. 3) Construction support services for the project in the amount of $358,000. This will be a 15 -18 month project. Support services include review of shop drawings, responding to RFI's, providing inspection, change order preparation, operation and maintenance manuals, commissioning and testing of each lift station, completion of as -built drawings. The proposed amendment totals $411,400 and will be funded by the 412 -300 Sewer Utility Fund. The construction estimate for the project is $3.6 million. Staff recommends the Council approve the amendment to allow completion of the design and advertising for construction COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO AUTHORIZE THE MAYOR TO SIGN ADDENDUM NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH CHS ENGINEERS, LLC. MOTION CARRIED UNANIMOUSLY. 10. ORDINANCE FOR 2012 HOURLY POSITIONS EMPLOYEE WAGE SCHEDULE. Interim Human Resources Director Carrie Hite explained the Council is provided the Hourly Positions Employee Wage Schedule each year as part of the budget process. This year the changes in the ordinance are due to the change in the State of Washington minimum wage, an increase of 4.25 %. The pay schedule has been adjusted by 4.25 %. She relayed staff, the Mayor and Public Safety /Human Resources Committee's recommendation to approve the ordinance. Councilmember Fraley - Monillas asked how many staff members were affected by this change. Ms. Hite answered it affects approximately 80 -100 seasonal part -time staff in Parks and Public Works. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER BERNHEIM, TO APPROVE ORDINANCE NO. 3859, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, ESTABLISHING THE SALARY RANGES FOR HOURLY EMPLOYEES FOR BUDGET YEAR 2012, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. MOTION CARRIED (4 -1), COUNCILMEMBER PLUNKETT VOTING NO. 11. NON - REPRESENTED EMPLOYEE COMPENSATION ORDINANCE. Ms. Hite explained this ordinance is presented to the Council each year during the budget process. There are 40 non - represented directors and managers who are not part of an organized labor union. The proposed Non - Represented Employee Compensation Ordinance authorizes a 1.5% cost of living adjustment (COLA) consistent with the SEIU and Teamster labor agreements. She recommended not proceeding with the salary survey due to the compensation consultant who is reviewing the Non - Represented Compensation Policy. She expected that review would be complete by March. Councilmember Fraley - Monillas asked if this was done each year. Ms. Hite answered the existing policy requests it be done each year as part of the budget process. There are two parts, 1) conduct a salary survey of the highest and lowest paid non - represented employees and provide a recommendation to Council, and 2) establish a COLA. Edmonds City Council Approved Minutes November 15, 2011 Page 12 Councilmember Fraley- Monillas inquired about the consultant who is reviewing the non - represented policy. Ms. Hite answered the compensation consultant is considering the banding issue; the COLA is not part of the consultant's review. The recommendation is to provide a COLA consistent with the SEIU and Teamsters. The compensation consultant is considering compression issues; there are directors and managers supervising employees who have received increases. If the non - represented employees are not provided a COLA, that compression will continue. The consultant will return with a salary survey and recommendations for changes to the policy. Councilmember Bernheim asked when the salary survey would be completed. Ms. Hite answered February /March 2012 contingent on the process with Council to complete that work. Councilmember Bernheim preferred to delay a decision regarding a COLA that is not required by a contract to a meeting when the two absent Councilmembers were present. Councilmember Petso agreed with Councilmember Bernheim's suggestion. She asked whether the COLA could be retroactive if the Council waited until the compensation study was complete. Ms. Hite advised that could be done. COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETSO, TO DEFER THIS TO A FUTURE DATE. MOTION CARRIED UNANIMOUSLY. Council President Peterson advised he would schedule this on an agenda in the next couple weeks. 12. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF NOVEMBER 7.2011. Public Safety & Human Resources Committee Councilmember Bernheim reported the Committee discussed the 2012 Hourly Positions by Pay Grade/Title and 2012 Hourly Employee Wage Schedule. The Committee also discussed recreational burning and air quality. The code was recently amended to permit outdoor recreational fires. He cautioned residents to be aware of their outdoor recreational fire's effects on their neighbors. Community Services/Development Services Committee Councilmember Plunkett reported the following items were approved on the Consent Agenda: • Marina Beach BNSF Land Lease • Authorization for the Mayor to sign the Emergency Intertie Agreement between Seattle Public Utilities and City of Edmonds. • Authorization for Mayor to sign Addendum No. 1 to Professional Services Agreement for • the Sewer Rehabilitation Project with CHS Engineers • Authorization to approve a sewer and storm easement for installation of a sewer main for the 2012 Sewerline Replacement Project • Authorization to approve an easement for installation of water main for the 2012 Waterline • Replacement Project • Authorization for Mayor to sign a Professional Services Agreement with Parametrix for • design services with respect to the Main Street Decorative Lighting and Sidewalk • Enhancements Project The committee also discussed a potential amendment to the Comprehensive Plan map that would adjust the boundaries of the Medical/Highway 99 Activity Center to remove the existing single family - designated area from the Activity Center. The Committee expressed an interest in a public hearing regarding removing the single family area along 220th Street SW from the activity center boundary. Edmonds City Council Approved Minutes November 15, 2011 Page 13 Finance Committee Councilmember Petso reported most of the items discussed by the Finance Committee were on tonight's agenda and three will be on next week's Consent Agenda. The December Finance Committee agenda will include discussion regarding reserve and investment policies. 19�\l awel 3UNCU► 10 1 OLIN R Mayor Cooper reported Seattle is considering a plastic bag ban. The newspaper acknowledged Edmonds was the first to pass a plastic bag ban. He credited the Councilmembers who led that, particularly Council President Peterson and Councilmember Bernheim. The State legislature may pursue a statewide ban. Edmonds has proven to be a leader in that issue. Given the outcome of the election, Mayor Cooper suggested the Council consider Regional Fire Authority (RFA) positions by resolution next week. The RFA's December meeting will include votes on several important issues and it is important to have all three of the City's representatives present. In particular, it is important to replace his position on the RFA now rather than January when there is the potential to replace other members. Mayor Cooper referred to his moustache, explaining Movember is a moustache growing charity event held during November each year that raises funds and awareness for men's health, specifically prostate cancer and other cancers that affect men. He noted several firefighters are participating in the event and he encouraged the public to consider participating in the fundraising effort. 14. COUNCIL COMMENTS Councilmember Bernheim referred to Mr. Bevan's comments, commenting although the plastic bag he provided was identified as a degradable product, Edmonds' plastic bag ban does not permit recyclable plastic bags. He explained there is a great deal of debate with regard to claims made by manufacturers of degradable plastic bags. He assured that when good, recyclable products are available, Edmonds' plastic bag ordinance will be amended to allow them. Council President Peterson reported the citizens of Edmonds again led the State in voter turnout with 67 %. He thanked voters for the incredible turnout. 15. CONVENE IN EXECUTIVE SESSION REGARDING POTENTIAL LITIGATION PER RCW 42.30.11.0(1)(i). At 9:12 p.m., Mayor Cooper announced that the City Council would convene in executive session regarding potential litigation per RCW 42.30.110(1)(i). He stated that the executive session was scheduled to last approximately 15 minutes and would be held in the Jury Meeting Room, located in the Public Safety Complex. No action was anticipated to occur as a result of meeting in executive session. Elected officials present at the executive session were: Councilmembers Bernheim, Plunkett, Fraley - Monillas, Peterson, and Petso. Others present were City Attorney Jeff Taraday, Public Works Director Phil Williams, Parks & Recreation Director Carrie Hite, City Engineer Rob English, and City Clerk Sandy Chase. The executive session concluded at 9:33 p.m. At 9:35 p.m., Council President Peterson reconvened the City Council Meeting in open session. 16. ADJOURN The Council meeting was adjourned at 9:35 p.m. Edmonds City Council Approved Minutes November 15, 2011 Page 14