09/25/2012 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
September 25, 2012
The Edmonds City Council meeting was called to order at 6:15 p.m. by Mayor Earling in the Council
Chambers, 250 5th Avenue North, Edmonds.
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Strom Peterson, Council President
Joan Bloom, Councilmember
Kristiana Johnson, Councilmember
Lora Petso, Councilmember
Diane Buckshnis, Councilmember
ELECTED OFFICIALS ABSENT
Frank Yamamoto, Councilmember*
( *participated by phone in Agenda Item 6)
Adrienne Fraley - Monillas, Councilmember
ALSO PRESENT
Yaelle Kimmelman, Student Representative
STAFF PRESENT
Al Compaan, Police Chief
Jim Lawless, Assistant Police Chief
Stephen Clifton, Community Services/Economic
Development Director
Phil Williams, Public Works Director
Shawn Hunstock, Finance Director
Carrie Hite, Parks & Recreation Director /Acting
Human Resources Administrator
Rob Chave, Interim Development Services Dir.
Carl Nelson, CIO
Doug Fair, Municipal Court Judge
Joan Ferebee, Court Administrator
Mary Ann Hardie, Human Resources Manager
Rob English, City Engineer
Jeff Taraday, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
1. CONVENE IN EXECUTIVE SESSION REGARDING LABOR NEGOTIATIONS PER RCW
42.30.140(4)(b).
At 6 :15 p.m., Mayor Earling announced that the City Council would meet in executive session regarding
labor negotiations per RCW 42.30.140(4)(b). He stated that the executive session was scheduled to last
approximately 45 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: Mayor Earling, and Councilmembers Johnson, Buckshnis,
Peterson, Petso and Bloom. Others present were City Attorney Jeff Taraday, Parks and Recreation/Acting
Human Resources Administrator Carrie Hite, Police Chief Al Compaan, Otto Klein, Summit Law Group,
and City Clerk Sandy Chase. At 7:05 p.m., Mayor Earling announced to the public present in the Council
Chambers that an additional 15 minutes would be required in executive session. The executive session
concluded at 7:20 p.m.
Mayor Earling reconvened the regular City Council meeting at 7:22 p.m. and led the flag salute.
2. APPROVAL OF AGENDA
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO ADD AN EXECUTIVE SESSION REGARDING POTENTIAL LITIGATION AS
AGENDA ITEM 11. MOTION CARRIED UNANIMOUSLY.
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Page 1
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE THE AGENDA IN CONTENT AND ORDER AS AMENDED.
MOTION CARRIED UNANIMOUSLY.
3. APPROVAL OF CONSENT AGENDA ITEMS
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY.
The agenda items approved are as follows:
A. ROLL CALL
B. APPROVAL OF CLAIM CHECKS #134307 THROUGH #134434 DATED SEPTEMBER
20, 2012 FOR $947,518.86 (REPLACEMENT CHECKS #134324 $10.00 AND #134429
$10.35). APPROVAL OF PAYROLL DIRECT DEPOSIT & CHECKS #51683 THROUGH
#51705 FOR $446,198.80, PAYROLL CHECKS #51715 THROUGH #51716 FOR $931.96,
BENEFIT CHECKS #51706 THROUGH #51714 & WIRE PAYMENTS FOR $191,623.79
FOR THE PERIOD SEPTEMBER 1, 2012 THROUGH SEPTEMBER 15, 2012.
C. ACKNOWLEDGE RECEIPT OF A CLAIM FOR DAMAGES FROM JUDY SALINAS,
GLAZED & AMAZED ($419.41).
Introduction of Student Representative
Council President Peterson introduced Student Representative Yaelle Kimmelman, a student at Edmonds -
Woodway High School, and described her background.
Student Representative Kimmelman said she was excited to be selected as the Council Student
Representative and looked forward to making students' voices heard.
4. AUDIENCE COMMENTS
Jennifer Machuga, City of Edmonds, read a letter into the record related to the continued discussion on
the non - represented employee compensation study and policy. It acknowledged the fact that the Council
has tough budget decisions to make tonight and in the following months. The letter was signed by City
employees from both non - represented and represented employee groups and noted all are dedicated
employees who have the best interests of the City. To the majority of residents as well as those who visit
and conduct business within Edmonds, employees are seen as one group and not categorized as
represented and non - represented. Everyone receives the same quality of service from staff regardless of
whether that employee falls into a represented or non - represented employee group.
There is no one person or group that makes the city function; it is a team that supports one another. The
letter acknowledged it can be discouraging for a non - represented employee to work alongside a
represented co- worker and know that even though both provide the same level of service, one has
continually received cost of living and merit salary increases, in addition to several other represented
benefits, and the other has not. This type of disparity can affect morale and gives the appearance that
certain employees are valued more than others. There should be internal equity across the board. The
letter concluded with a request that the Council's decision shows respect for the 39 dedicated non -
represented employees and provides a result consistent with the approximately 170 represented
employees. Several employees accompanied Ms. Machuga at the microphone as she read the letter.
Roger Hertrich, Edmonds, referred to the contract for police services with Woodway that was approved
by Councilmembers Peterson, Buckshnis, Johnson and Yamamoto and endorsed by Mayor Earling at last
week's meeting. He referred to the low cost of the contract; expressing concern with the "cheap deal" the
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Council gave Woodway. He recalled Councilmember Fraley- Monillas' comments at last week's meeting
regarding the much higher cost of a full service contract, $100,000 - $200,000. He explained the low
contract made it possible for Woodway to go out to bid for a $2 million, 6,000 square foot City Hall
building with a 500 square foot plaza. The cost of a $2 million bond would be approximately
$160,000 /year. He suggested the Councilmembers who voted in favor of this giveaway of public money,
giving Woodway the ability to finance their new building, deserved a "special award."
5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON,
OPPOSING COMMERCIAL AIR PASSENGER AND OTHER INCOMPATIBLE AIR SERVICE
AT PAINE FIELD LOCATED WITHIN SNOHOMISH COUNTY.
Mayor Earling explained he placed this on the agenda because it is an issue past Councils have spoken to
and in light of recent activities at Paine Field, he wanted to give the current Council an opportunity to
speak to it or take a vote of continued opposition.
Community Services/Economic Development Director Stephen Clifton explained since 1995 the Council
has passed several resolutions opposing commercial air passenger service at Paine Field. He highlighted
provisions in the resolution that are significantly different from resolutions passed as recently as 2010: the
Federal Aviation Administration (FAA) issued a final National Environmental Assessment (EA) on
September 14, 2012. The EA only assessed impacts from the number of flights generated by two airlines
proposed to use Paine Field; the assessment is seriously flawed because it does not assess potential
cumulative impacts if Paine Field were opened to commercial air passenger service. Once Paine Field is
opened to commercial air passenger service, FAA laws stipulate commercial service cannot be limited
and will take precedence over existing general aviation flights. It is feared this will jeopardize the Boeing
and manufacturing emphasis and general aviation emphasis of Paine Field.
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE RESOLUTION 1282, A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EDMONDS, WASHINGTON, OPPOSING COMMERCIAL AIR PASSENGER
AND OTHER INCOMPATIBLE AIR SERVICE AT PAINE FIELD LOCATED WITHIN
SNOHOMISH COUNTY. MOTION CARRIED (4 -0 -1), COUNCILMEMBER JOHNSON
ABSTAINING.
Mayor Earling said the official resolution will be provided at next week's meeting for Councilmembers'
signature.
Mayor Earling stated it is customary for a Councilmember to state the reason he /she chose to abstain.
Councilmember Johnson responded it may be customary but she was told it is not necessary. City
Attorney Jeff Taraday agreed, explaining there was no Council procedure that required a Councilmember
to declare why they abstained. The Council could adopt such a procedure.
6. NONREPRESENTED EMPLOYEE COMPENSATION STUDY AND POLICY DISCUSSION
(CONTINUED FROM 9/18/12).
( Councilmember Yamamoto participated in this agenda item by telephone.)
Council President Peterson recalled he tabled the motion at last week's meeting; he asked whether a
motion needed to be made to remove the item from the table. City Clerk Sandy Chase read the motion to
table made at last week's meeting:
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER JOHNSON,
TO TABLE THIS ITEM. UPON ROLL CALL, MOTION CARRIED (3 -2), COUNCIL
PRESIDENT PETERSON AND COUNCILMEMBERS BUCKSHNIS AND JOHNSON VOTING
YES; AND COUNCILMEMBERS PETSO AND BLOOM VOTING NO.
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City Attorney Jeff Taraday explained the Council could also make a motion to suspend the rules.
Councilmember Petso commented the motion to table made at the last meeting was not appropriate; the
motion should have been to table to a definite time. She asked whether a motion to remove the item from
the table or to suspend the rules was preferable. Mr. Taraday answered either would be appropriate.
COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON, TO
SUSPEND THE RULES AND ALLOW MS. HITE TO CONTINUE WITH HER PRESENTATION
AND TAKE UP A MOTION LATER. MOTION CARRIED UNANIMOUSLY.
Acting Human Resources Administrator Carrie Hite explained the consultant made a presentation at last
week's meeting regarding the Nonrepresented Employee Compensation Study. The consultant is not
present tonight. She sought Council direction on the following:
0 2012 compensation: budget $88,000
0 2013 budget assumptions
0 Management leave, use it or lose it, no cashout, each day represents $13,272
0 Employment contracts
0 Compensation policy
Councilmember Petso summarized the motion that was on the floor:
PUT EMPLOYEES ON STEPS IN A TWO -YEAR PHASE IN AND SPEND THE $11,000
NECESSARY TO PUT TWO OF THE EMPLOYEES SO THAT THEY WERE PAID MORE
THAN THEIR IMMEDIATE SUBORDINATES, NO COLA FOR 2012.
Motion from the 9/18/12 minutes:
COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO
BEGIN A MOVE TOWARD PUTTING EVERYONE ON STEPS WITHIN THE PROPOSED PAY
RANGES WITH A 2 -YEAR PHASE -IN, NO COLA, NO BONUS, NO MANAGEMENT LEAVE,
AND IN ADDITION TAKE CARE OF THE THREE POSITIONS WITH COMPRESSION ISSUES
THAT HAVE BEEN IDENTIFIED BY THE STAFF.
Councilmember Petso explained she did not intend any disrespect to the employees in attendance; by
coincidence, the 2012 budgeted amount for COLAs for nonrepresented employees is approximately the
amount required to place employees to steps. The difference is which employees will receive the money;
rather than an across - the -board percentage to each employee; the proposed motion would instead address
issues that have been brought to the Council's attention including that two employees are below the pay
range as well as employees who are not paid as much as their subordinates. In addition as employees are
moved toward the next step, there will be raises necessary to achieve that movement. The only difference
between the proposed motion and a COLA is a COLA is distributed equally via a percentage to each
employee. The proposed motion directs approximately the same amount of money to address certain
problems and inequities that the consultant identified.
UPON ROLL CALL, THE VOTE ON THE MOTION FAILED (2 -4), COUNCILMEMBERS
PETSO AND BLOOM VOTING YES; AND COUNCIL PRESIDENT PETERSON AND
COUNCILMEMBERS YAMAMOTO, JOHNSON AND BUCKSHNIS VOTING NO.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT
PETERSON, TO PUT EVERYONE ON A STEP THIS YEAR WHICH WOULD BE ABOUT
$68,000.
Councilmember Buckshnis explained rather than wait two years, she preferred to place everyone on a step
now "since we have the money." She suggested addressing the remaining money after a decision
regarding placing employees on steps has been made.
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Councilmember Petso referred to Councilmember Buckshnis' comment, "since we have the money,"
pointing out the cost to place everyone on a step costs more than the COLAs. The $88,000 in the 2012
budget included both COLAs and merit increases. She asked whether the intent was to put everyone on a
step and not have COLAs or merit increases. Councilmember Buckshnis preferred to address the surplus
after the decision regarding placing employees on steps has been made. The remaining money could be
distributed via a COLA or a lump sum payment.
Responding to Councilmember Johnson's questions, Councilmember Buckshnis explained the proposed
motion would bring everyone up to a step and those in excess of a step cannot go any higher and are
frozen. Ms. Hite agreed.
Ms. Hite further explained the two employees below the pay ranges would come up to the first step.
Placing all employees on a step would also resolve the three employees with compression issues.
Councilmember Johnson summarized the proposed motion would resolve those five positions and place
everyone on a step.
Councilmember Petso inquired about the surplus Councilmember Buckshnis referred to. Councilmember
Buckshnis explained it was the difference between the $88,000 in the 2012 budget for COLAs and merit
increases and the $68,000 cost to place everyone on a step.
Councilmember Yamamoto asked whether distribution of the surplus would affect all employees
including those at the top of their range. Councilmember Buckshnis preferred to resolve the issue of
placing employees on a step first before discussing how to handle the excess.
Councilmember Petso asked how much of the $88,000 budget in 2012 has already been appropriated for
merit increases. Ms. Hite estimated $2,000 had been allocated; merit increases have been few and far
between as Mayor Earling froze them early this year.
Council President Peterson spoke in favor of the motion. He cited the importance of creating internal
equity in the way represented and nonrepresented employees are treated, stating this was a great way to
make that happen. He agreed with placing employees on a step in one year; if it is a good idea to enact the
step policy, it should be done as soon as possible. Funds were budgeted in 2012 for an increase for
nonrepresented employees and the proposal is well within the budgeted amount.
THE VOTE ON THE MOTION CARRIED UNANIMOUSLY.
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO AUTHORIZE THE MAYOR TO TAKE THE REMAINDER OF THE
UNSPENT BUDGETED MONEY FOR 2012 TO MAKE EQUITY ADJUSTMENTS TO THE
NONREPRESENTED EMPLOYEES.
Councilmember Buckshnis asked whether there were issues if the remaining $20,000 was distributed to
everyone in a lump sum payment. Ms. Hite answered there is no issue if it is spread between everyone;
there may be issues if the amount is spread between only a few. Councilmember Buckshnis asked if the
intent was for Mayor Earling to distribute the money via merit increases. Council President Peterson
suggested a 1.5% pay increase retroactive to as far back as we can go in 2012. He relayed Ms. Hite's
determination that the 1.5% increase starting in approximately May would cost $20,000. He summarized
his intent was the same percentage would be spread between employees rather than a lump sum amount.
Council President Peterson clarified rather than everyone getting the same lump sum payment, his intent
was to authorize Mayor Earling to spend the money either as 1.5% payment as bonus pay at the end of the
year or over the next few months once the amount expended on merit increases has been determined. He
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summarized Ms. Hite, Mayor Earling and Mr. Hunstock would be the best ones to determine the
allocation.
Councilmember Yamamoto asked if that would include the employees at the top of their pay scale.
Council President Peterson answered yes, noting some of the equity adjustments would be at the Mayor's
discretion.
Councilmember Petso observed $2,000 of the $88,000 budgeted had already been allocated, leaving
$18,000 to be distributed. Ms. Hite answered she would like to confirm the amount that has been
allocated on merit increases. If the motion passes, she recommended staff work with Mayor Earling to
determine the amount that remains after everyone is moved to a step and the amount allocated to merit
increases has been determined.
Councilmember Bloom asked if Council President Peterson's motion was a lump sum or a 1.5% increase.
Council President Peterson answered he preferred a 1.5% increase rather than a lump sum payment.
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
YAMAMOTO, TO AMEND THE MOTION THAT THE EQUITY ADJUSTMENTS NOT BE A
LUMP SUM PAYMENT. AMENDMENT FAILED (2 -4) COUNCIL PRESIDENT PETERSON
AND COUNCILMEMBER YAMAMOTO VOTING YES.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PETSO, TO
AMEND THE MOTION TO MAKE THE EQUITY ADJUSTMENTS A LUMP SUM PAYMENT
SPREAD OUT EVENLY TO EVERYONE.
Council President Peterson asked if Councilmember Buckshnis' statement, "spread evenly to everyone"
meant everyone got the same amount or the lump sum would be calculated as a percentage of their pay.
Councilmember Yamamoto commented the most equitable way would be to distribute it as a percentage
of their base salary.
Councilmember Buckshnis clarified her intent was a lump sum payment based on length of service.
THE VOTE ON THE AMENDMENT CARRIED UNANIMOUSLY.
Ms. Hite clarified the intent was whatever was left from the $88,000 after the merit increases and the
amount necessary to put employees on steps, be distributed evenly between all nonrepresented employees
in a lump sum in a percentage based on the nonrepresented employee's base salary.
2013 Budget Assumptions
Ms. Hite advised the Finance Department is preparing a preliminary budget. The 2013 budget discussion
is based on the 2012 decisions the Council just made and fulfilling the Compensation Policy
recommendations. She invited the Council to discuss the 2013 budget assumptions with regard to the
Compensation Policy.
Councilmember Petso commented she has a number of edits to the Compensation Policy as it was
recommended by the consultant but left the document at home tonight. She suggesting adding to the
policy that 5% step increases are not automatic because that may not be affordable.
Council President Peterson suggested whatever percentage the Council agrees on, the Council ask Mr.
Hunstock to incorporate that percentage in the preliminary budget. No final decisions regarding the
percentage in the 2013 budget will be made until the Council concludes its deliberations on the 2013
budget. Tonight's decision is intended to provide guidance to staff regarding different scenarios, not make
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an absolute decision. He did not want to limit the discussion to the low end early in the process and urged
the Council to consider the information the compensation consultant provided.
Councilmember Johnson agreed Council President Peterson's suggestion was a prudent course of action.
Councilmember Buckshnis expressed interest in seeing dollar amounts for 0.75 %, 1 %, 1.25% and 1.5%
COLAs.
Councilmember Petso pointed out the salary policy also proposes 5% for steps. She asked whether the
intent was to incorporate that into the numbers Mr. Hunstock will provide, or only the step the Council
just approved and grant COLAs next year. Council President Peterson envisioned a combination of the
two. He questioned why the Council would implement a step program tonight and not have step increases
next year. He suggested a 5% step be provided as one budget line item as well as the range of COLAs that
Councilmember Buckshnis suggested.
Ms. Hite relayed Mr. Hunstock's recommendation that they work with Mayor Earling to incorporate the
budget assumptions based on the Council's conversation tonight and the recommendation of the
compensation consultant. Mr. Hunstock will provide options for the preliminary budget.
Management Leave
Ms. Hite explained there was a request from the Council last week to cost out management leave.
Management leave was one of the compensation consultant's recommendations as many comparable
cities provide it for nonrepresented employees. Management leave is "use it or lose it;" there would not be
any cashout or hard dollars from the City's budget. Each day represents approximately $13,000.
Councilmember Petso stated she was not interested in management leave at this time because the City has
already run into situations where the necessary employees are not present due to vacation or other reason.
Leave schedules are already pretty generous and she did not find it appealing to add to leave.
Council President Peterson commented he would like to see what a 3 -day management leave scenario
looks like. Ms. Hite commented 3 days would be 3 times $13,000. That is the indirect cost of
management leave. It is not a cashout benefit and that amount would not be added to the budget in any
scenario.
Councilmember Petso asked whether an employee would have the option to take management leave
instead of vacation or sick leave and then cashout vacation or sick leave. Ms. Hite answered an employee
can only cash out vacation and a portion of their sick leave when they leave the City's employment.
Employment Contracts
Ms. Hite explained this issue was raised by the compensation consultant. There are pros and cons
associated with employment contracts. Contracts may lessen the City's liability in some respects but there
are also negatives associated with employment contracts.
City Attorney Jeff Taraday commented employment contracts at the director level can be a helpful
recruiting tool to provide an additional level of certainty to a director level candidate. One of the things
that would typically be included in an employment agreement is a provision for 3 month severance
package if the employee is terminated without cause in exchange for a release and waiver from the
employee. An employment contract can do two things, 1) to the extent that a potential employment
candidate is uncertain about making a change to a new employer and wants to have a parachute if things
don't go as well as expected, it can be a useful recruiting tool for director level candidates, and 2) if an
employee is terminated, it can in some cases reduce the potential liability to the City because knowing
they are entitled to the 3 month severance package, the employee may opt not to "lawyer up."
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Mr. Taraday cautioned employment contracts need to be carefully drafted to ensure it is still clearly an at-
will position and it does not in some way create a contract right to employment. Employment contracts
can also give the City Council a performance dial if there is a particular metric the Council wants a
department to achieve; that performance metric could then be tied to compensation.
Councilmember Petso observed it was unlikely the Council will be acting on this issue tonight. She
assumed the matter would be reviewed by the Public Safety and Personnel Committee and returned to the
Council for further discussion. Ms. Hite agreed that could be done at the Council's discretion.
Council President Peterson observed this was not an issue that needed to be addressed immediately. He
questioned whether Council wanted staff to develop a rough draft of an employment contract before
referring it to committee for review and returning to the Council next year. Before staff drafted an
employment contract, Ms. Hite requested the Council indicate whether there was interest in referring it to
the Public Safety and Personnel Committee.
Councilmember Bloom suggested the Committee consider it next year. Council President Peterson
concluded the Committee would discuss it next year or at the Council retreat.
Compensation Policy
Ms. Hite observed there was interest by Council in internal and external equity. She asked for Council
input regarding the compensation consultant's recommendations for step increases. The consultant's
recommendation is for an objective compensation policy rather than the subjective policy the City has
utilized in the past. She asked for Council input regarding the amount between steps and whether to
include qualifying language such as 5% subject to Council approval. She could then draft options for the
Council's consideration.
Council President Peterson suggested the language read 5% with the provisions Ms. Hite suggested. He
pointed out one of the differences between a represented and a nonrepresented step program is the
Council has the ability to freeze the steps if necessary in the nonrepresented program which is not an
option in a negotiated contract.
Councilmember Petso agreed with including language "subject to Council approval." She also suggested
deleting the first two paragraphs and the last four paragraphs of the policy. She offered to email Ms. Hite
her suggested revisions.
Councilmember Buckshnis also offered to send her suggested changes to Ms. Hite.
( Councilmember Yamamoto discontinued his participation in the Council meeting by phone at 8:23 p.m.)
7. 2013 BUDGET WORK SESSION
Mr. Hunstock explained the intent of this agenda item is to have a high level discussion of each
department's budget assumptions going into 2013 budget planning. The assumptions will be included in
the preliminary budget that Mayor Earling will present to the Council on October 16.
Mr. Hunstock explained with a projected deficit of $1.5 million for 2013, the Mayor, Directors and staff
sought to reduce expenses in order to balance the budget, as well as potentially address the ongoing
imbalance between growth in revenue and expenses. The following approach was taken in developing the
2013 budget.
• No new taxes
• Across - the -board reduction of approximately $850,000 allocated to all departments except non -
departmental
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• Reduction in staffing through the Voluntary Separation Incentive Program for a targeted savings
of at least $400,000
• Projected potential savings of at least $250,000 in the City's portion of health insurance premium
costs
• The above $1.5 million reduction represents a cut of approximately 4.5% of the General Fund
budget
• All reductions will have an impact on service levels internally within the City and/or externally to
the public
• Declining fund balances in other funds will continue to place pressure on the General Fund to
cover deficits in those funds:
• LEOFF Medical Insurance Reserve Fund — another significant transfer from the General
Fund is anticipated
• Cemetery maintenance Improvement Fund — a transfer from the General Fund will be
required to cover the deficit in this fund beginning in 2013
• Public Facilities District (Edmonds Center for the Arts) — payment of debt service on behalf
of the Public Facilities District is expected to require an annual transfer indefinitely.
Finance Department
Mr. Hunstock reviewed what the Finance Department does:
• Mandated services:
• Budgeting (RCW 35A.33)
• Financial reporting (RCW 43.09.230)
• Other Services
• Risk management
• Internal audits
• Grant monitoring
• Cash management
• Department support
• Special projects
Mr. Hunstock reviewed 2011 operating measures:
• Utilities
o Mailed 67,300 utility statements
0 12,900 customers
o Generating $13 million in utility revenue
• Accounts Payable
0 6,500 checks written for 10,700 invoices
o $31.8 million in vendor payments
0 14,00 different vendors
• Payroll
0 5,000+ paychecks
o $15.4 million in gross payroll
o Paid to 327 distinct individuals
Mr. Hunstock reviewed highlights of the Finance Department 2013 budget:
• Consistent staffing levels from 2012 to 2013
• Reduction in professional services (approximately $12,000) for sales tax auditing program
• Will require staff to participate to a greater extent in sales tax auditing
• We will further develop in -house resources for this via utilities database, GIS information,
etc.
• Targeted reductions in supplies, travel and miscellaneous
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Mr. Hunstock reviewed Non - Departmental expenditures over $100,000:
$6.4 million — Fire District 1 contract
$1.4 million — principal and interest payments
$817,000 — SnoCom / New World
$600,000 — LEOFF Medical Expense Fund
$486,000 — Prisoner Care (previously in Police Department budget)
$444,000 — Insurance — liability and property
$270,000 — Public Defender (increase of $130,000)
$250,000 — Edmonds Center for the Arts
$202,000 — Hydrant costs
$180,000 — ESCA/SERS
$100,000 — accrued vacation/sick payouts
$200,000 — approximate total increase in 2013 compared to 2012
Information Services
CIO Carl Nelson described the proposed reorganization:
• Anticipated vacancy of IT position
• Upgrade one existing position
• Establish part-time IT Assistant (helpdesk)
• Proposed reductions and reorganization service impacts:
• Technology adoption slowed or moved out
• Longer timeframes for software/hardware updates
• Web /social media adoption done case -by -case
Mr. Nelson provided information regarding the fiber project:
• Ongoing maintenance of equipment/facilities
• Excess capacity generates approximately $34,000 /year
• CTAC recommendations:
• Additional route from downtown to Highway 99
• Business Plan to develop revenue from excess fiber capacity
• Transition to enterprise fund
Mayor's Office
Mr. Hunstock explained the Mayor acts as the fulltime Chief Executive Officer and Chief Operating
Officer. The Mayor's Office encompasses the Mayor and the Executive Assistant along with the Human
Resources Department, Municipal Court, Economic Development Director, City Clerk and City Attorney.
Mr. Hunstock highlighted the Mayor's Office 2013 budget:
• Net overall budget cuts of 8% achieved through salary and benefit reductions
• Resources reallocated to cover greater participation by Mayor at the regional level
City Clerk's Office
City Clerk Sandy Chase reviewed a partial list of the City Clerk's Office's responsibilities:
• Public Records Requests - has become the number one impact in the City Clerk's Office and
affects all departments
• Official City Records Management
• City Council — special meetings and public hearing notices, agendas, packets, minutes
• Ordinances, resolutions / codification
• Business licenses
• Parking permits
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Claims for damages / litigation
Other: contracts, reception services, mail services, notary services, recording services, research,
elections, special events, census, etc.
Ms. Chase provided 2012 highlights:
• Public Disclosure/Records Management Specialist (part -time) hired in March
• Working with Information Services, a vendor has been selected for a Documentation
Management System in the Clerk's Office to upgrade 1993 system — will assist public and
internal staff
All employee training provided — records requests (Public Records Act), electronic records
management, records retention
Ms. Chase reviewed challenges:
• Public records requests continue to be a challenge due to the extensive nature of requests and
volume
• Management of email / electronic records
• Management of paper records (impacted by electronic requests)
Ms. Chase explained records requests frequently ask for any and all records associated with a topic. This
likely requires a search of email records which then turns up hundreds or thousands of emails related to a
public records request. Each email must be reviewed to determine if any are exempt from disclosure
which involves the City Attorney and referral to the Clerk's Office for redactions, creation of a redaction
log, etc. All paper records must also be reviewed for this purpose as well. Since 2005 the City has
captured all email; there is no system in place that allows for the removal of records not required to be
kept by the Washington State Records Retention Schedules. Therefore because the City is in possession
of records that are not required, they must be disclosed if a records request is received. If paper records
are properly managed and destroyed in accordance with Record Retention Schedules, the records may
still need to be disclosed if they were originally provided electronically because they still exist in the
City's email records. Ultimately this creates additional work that good records management is intended to
avoid. This is a major challenge that she will continue to pursue aggressively with Information Services in
the coming years.
Ms. Chase reviewed budget reductions and impacts:
• Reduce advertising budget related to non - required newspaper ad
o Impact: less public outreach
• Reduce communications (postage)
o Impact: Greater use of electronic communication
• Reduce training /travel
o Impact: Less opportunities to increase knowledge /skills
Police Department
Police Chief Al Compaan reviewed proposed 2013 staffing:
• Commissioned Officers: 51 (including 2 in training)
• Chief, Assistant Chief, Field Services, Investigations, Training Corporal, Administrative
Sergeant, and Professional Standards Sergeant
• Reduction of 4 FTE from 2012 budget
• Civilian staff: 9 full -time and 2 part-time
o Police Clerks, Property Office, Animal Control/Ordinance Enforcement, Executive Assistant,
part-time DV Coordinator and Administrative Assistant
Chief Compaan reviewed impacts on the 2013 budget:
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September 25, 2012
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• Eliminates Assistant Chief position vacated by retirement
• Eliminates vacant patrol officer position
• Eliminates patrol officer position through VSIP
• Eliminates sergeant position through VSIP
• Requires realignment/reorganization of commissioned staff in Field Services
• Reduces prisoner care budget by $40,000 and moves it to the Non - Department budget.
Chief Compaan highlighted police activity:
• Part 1 crimes solved — 33.7% (very high clearance rate)
• Felony filings — 288, record number in 2011
• Traffic citations and infractions — 6,063
• DUI arrests — 161
• Total misdemeanor arrests — 1,497
• Animal control incidents —1,370
• Parking citations — 793
• Firearms related requests (CPL, transfers) — 1,031
• Public Disclosure Requests — 2,093
Recent operational highlights included:
• Established regional burglary task force
• Integrated North Metro SWAT team after approval of Interlocal Agreement
Recent highlights related to community relations included:
• Celebrated Police Centennial in collaboration with Edmonds Historical Museum
• Hosted Edmonds Night Out on July 31, 2012
Public Works and Utilities Department
Public Works Director Phil Williams described who and what Public Works does:
• Operate and maintain 14 wastewater lift stations, one water pump station and 20 PRV stations,
2,100 valves, 2,000 hydrants, 4 reservoirs (7.5 million gallons), 3,300 manholes, 180 and 190
miles of water and sewer mains, respectively
• Maintain 133 CL miles (288 lane miles) of paved surface in City ROW, 448 City -owned
streetlights, 18 signalized intersections, and 5,625 signs
• Maintain 7,077 catch basins, cleaning about 6,000 /year, 571 public and private
detention/treatment ponds, and over 175 miles of storm water piping and open drainage ditches or
creeks
• Maintain, fuel and replace as necessary 158 pieces of rolling stock, 92 in Public Works &
Utilities
• Maintain or operate /maintain 20 major public buildings or facilities
Mr. Williams reviewed 2012 accomplishments:
• Main Street 5th to 6th construction underway — will be completed in November
• Received $5.21 million grant for 228`h/99 and signal improvements (no local match required)
• Received notice of award for construction grant for Five Corners roundabout $1.94 million
• Began design/ROW phase 212`h/76`h
• Finished up 2010, 1011 and 2012 water line replacements - $5.1 million
• Completed rebuild of sewer lift station #2 - $900,000
• Completed two Talbot Road drainage projects
Mr. Williams reviewed budget reductions and impacts:
Edmonds City Council Approved Minutes
September 25, 2012
Page 12
Reduce Public Works Administrative Assistant position to 80%
• Full coverage in office eliminated on Fridays
• Slower response to service calls from the public
• More people will be left with voicemail or have to call 911 on Fridays
Reduce current staff in Engineering for review of private development impacts and ROW permit
applications from three to two (33% staffing reduction):
• Overall customer service experience, Q &A, counter presence, etc. will decline
• Review times will increase for ROW permits for the public and for the utilities (Comcast,
PSE, PUD, Frontier, etc.)
• Review times for City utility impacts and Public Works frontage impacts in City ROW will
increase
• Public Works webpage will not be as frequently updated and improved
Budget reduction targets in Facilities Division will be met through energy cost savings over 2011
and from line item maintenance cuts:
• Office painting, carpeting, and small improvements will be eliminated
• Current reduced staffing level will be extended for custodians
Fleet Division will convert 17 vehicles to propane fuel savings approximately $60,000 annually
o Lower maintenance costs, reduced greenhouse emissions
Mr. Williams reviewed the following decision packages:
• Water
• Replace meter reading handhelds - $35,000
• Purchase Insert-a -Valve (or equal) - $50,000
• Sewer
• Replace (2) trailer- mounted generators - $70,000
• Replace (2) davit hoists - $16,000
• Fleet
o Replace (3) 16 -17 year old trucks - $165,000 (funded by B Fund)
• Engineering
o New position for capital project management - $95,000 annual expense 2013 — 2015 will save
over $100,000 /year in consultant costs
Mr. Williams reviewed upcoming issues:
• Utility rates
• Proposed rate increased for City utilities from recently approved Comprehensive Plan for
Water and Stormwater
• Water — 7.5%
• Stormwater — 8.0%
• New Comprehensive Plan for wastewater under way now — have not increased sewer rates
since 2004, 2013 placeholder of 5%
• These adjustments are needed to continue to replace the City's aging infrastructure
• Street Pavement Preservation
• After much discussion and several attempts, no ongoing predictable source of funding has
been identified to meet this approximately $1.5 million annual need
• Without additional investment, street condition continues to decline
Human Resources
Acting Human Resources Administrator Carrie Hite explained Human Resources provides oversight and
all human resources services to all City Departments including recruitment, testing, job classification,
compensation administration, administration of all benefit programs, training, employee relations, labor
Edmonds City Council Approved Minutes
September 25, 2012
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union relations and negotiations, policy development, program development, Disability Board, Civil
Service and employee records.
Ms. Hite highlighted 2012 projects:
• Reorganization of department
o Budget amendment next month to hire HR analysis
• Nonrepresented Compensation study and policy
• Job description update
• Personnel Policy update
• EPOA negotiations, mediation
• Medical benefits reopener and change
• Voluntary Separation Incentive Program
Ms. Hite highlighted 2013 issues:
• Complete reorganization, staffing levels
o 2013 budget includes a FIFE HR analysis
• EPOA still pending
• Law Support negotiations for 2013
Ms. Hite described 2013 budget reductions and impacts:
• Reduce supplies
• Reduce professional services
o Eliminates citywide flu shots
• Reduce advertising
o Move to more online advertising
• Reduce citywide tuition reimbursement program
• Reduce employee awards
• Reduce wellness budget
Parks, Recreation and Cultural Services Department
Parks, Recreation and Cultural Services Director Carrie Hite provided an overview of the department:
• Manage over 450 acres of park land and open space, including robust flower program
• Operate Frances Anderson Center, Yost Pool, Edmonds Memorial Cemetery, Meadowdale
Preschool
• Provide comprehensive recreation programs to the community
• Provide comprehensive cultural arts programs
• Partner with Senior Center, library and others
Ms. Hite reviewed 2012 accomplishments
• Interurban Trail completion
• Hazel Miller Plaza completion
• Sports tourism/half marathon
• RCO application for City Park
• Park Impact Fee study moving forward
• Edmonds Marsh grant, and work with People for Puget Sound
• OLAE: Improvements at off leash area
• Flower basket adoption program
• Art enhanced flower poles
• SR 99 ground breaking
• Underwater Park
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September 25, 2012
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• (2) grants from Verdant, including free swim lessons for all 3rd graders and pilot Xfit camp for
youth at risk of obesity
• Parks assisting with Main Street, Five Corners
Ms. Hite reviewed budget reductions and impacts:
• Reduce seasonal parks labor
• Corner flower beds will be planted with perennials
• Reduction in mowing, landscape maintenance
• Reduce irrigation at neighborhood parks and ball fields
o Grass will go dormant for the summer, will reduce water costs and mowing
• Reduction of staff at Frances Anderson Center (1.5 FTE)
o Reorganize office
■ Reduce recreation office hours
■ Decrease in service levels for arts program
Reduce Arts funding
o Eliminate one summer concerts
• Eliminate arts scholarship programs
• Arts Commission programs to be funded by Writers on the Sound Conference revenue
Reduce Beach Ranger Program
• Limit summer beach patrols
• Visitor station closed
o Reduction of programs
Ms. Hite described a proposed decision package:
• Park, Recreation, and Open Space Plan (PROS) with Community Cultural Plan - $125,000
• PROS plan expired May 2014
• Funding could be split between 2013 and 2014
• Not eligible for REET funding
Ms. Hite commented on issues:
Cemetery Maintenance Fund
• Expenses continue to grow, revenues are flat, therefore fund balance is decreasing
• Current fund balance will be depleted this year (2013) and will need General Fund subsidy
Park Trust Fund: Yost Pool
• Trust Fund for Yost "Save the Pool" campaign depleted in 2011
• Long term operational goal is to increase revenue, decrease expenses and minimize subsidy
• Both participants and revenue increased this year compared to last year
Community Services and Economic Development Departments
Community Services/Economic Development Director Stephen Clifton described the department's
responsibilities related to Community Service:
• Provides support to the Mayor, City Council, Department Directors and City staff
• Help form and develop long -term policies and strategies
• Plan, organize, coordinate, and implement major /special projects
• Serve as a liaison between the City and its residents, and community, regional and state
organizations
• Develop and establish both long -term and short-range goals and objectives and administrative
procedures and policies
• Help coordinate Capital Improvement Projects
• Participate as a member of the annual budget review team
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September 25, 2012
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• Special project management on regional issues that involve funding, legislation and interlocal
agreement
• Serve as Administrative Mayor when the mayor is away from the office
• Serve as City's Disaster Recovery Coordinator
Mr. Clifton described the department's responsibilities related to economic development:
• Works to strengthen the local economy by:
o Attracting new businesses
• Working with property owners on development options
• Assisting local merchants to grow their businesses
• Resolving complaints /concerns and marketing Edmonds to businesses and visitors
Coordinates with other departments, government agencies and Chamber of Commerce on special
projects
Works on policies that encourage economic development and make the City more business
friendly.
Mr. Clifton reviewed 2013 budget reductions and impacts:
• Community services
o Reduce funding in professional services
■ Eliminates environmental attorney funding
Economic Development
o Reduce funding in professional services
■ Reduces ability to contract with economic development contractors on special projects
Reduce funding for advertising
o Reduces ability to most effectively market the City
Mr. Taraday advised a member of the Lighthouse team has the requisite expertise to handle
environmental issues and that can be addressed via the existing City Attorney contract.
Development Services Department
Interim Development Services Director Rob Chave explained operations consist of programs design to
meet federal and state requirements and locally mandated laws and codes as well as other discretionary
services. He displayed an organizational chart for the department that includes Development Services
Administration, the Building Division and the Planning Division. He described services the department
provides:
• Mandatory:
• Permit review and inspection
• Long range planning and regional coordinator
• GMA compliance
• Other services:
• Code enforcement
• Public information and assistance
• GIS analysis and mapping
• Website management and permit information
• Support for Boards and Commissions and Hearing Examiner
Mr. Chave reviewed trends:
Permit revenue continues to be at a reduced level, well below the peak years (2004 -2007) but
recovering from the 2009 -2010 trough
Permit activity is at a high level
Staffing is reduced from peak (2006) and as proposed will be below the 1991 staffing level
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September 25, 2012
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• Because of reduced staffing, permit activity per employee is nearing an all -time high
Mr. Chave reviewed several bar graphs illustrating:
• Development Services employment vs. building permits
• Building permits per Development Services employee
• Building permits issues through August compared to revenue
Mr. Chave reviewed 2013 budget reductions and impacts:
• Reduction in staffing: Director position remains unfunded and possible VSIP reduction
• No discretionary funds for independent analysis for permitting or enforcement
• Little capacity for maintenance /replacement of equipment or new initiatives (e.g. permit system
enhancement)
• Printing reduction shifts public information to nearly complete reliance on digital/web -based
delivery
• Reduced public meeting support (e.g. Planning Board goes from 2 to 1 meeting per month or
post meeting recordings on line and keep summary minutes)
• Slower code and plan amendment response times and capabilities
Municipal Court
Municipal Court Judge Doug Fair reviewed mandated court services:
• Court hearings
• Hearing must be set in required mandated time limits for infractions and criminal cases
• Interpreters must be provided at no cost
• Data entry
o All citations must be entered into the Washington State database correctly
• Probation DUI and domestic violence
o All defendants who are convicted of a DUI or domestic violence charge must be monitored
by the court
• Fine collections
o Fines are to be collected by the court and allocated to the City and the State
• Process judicial orders
o The court is responsible for properly processing all paperwork generated by or filed with the
court
Judge Fair described other services provided by the court:
• Passports
o Process passport applications as a special service to the citizens of Edmonds
• Other probation services
• The Probation Office monitors other criminal charges in order to cut down on recidivism
0
Judge Fair commented on impacts of budget reductions in 2012:
• Discontinued night court to fund court security for video hearings
• Closed during lunch hour to increase productivity
Judge Fair commented on impacts of 2013 budget reductions:
• Reduce by 0.5 FTE
• Reduce or eliminate passport service
• Reduce or eliminate probation on theft and drug cases
• Reduce periodic review on probation cases
• Reduce number of calendar resulting in longer hearings
Edmonds City Council Approved Minutes
September 25, 2012
Page 17
Judge Fair explained his caseload has increased approximately 68% since he began as the Municipal
Court Judge and staffing levels have decreased 13 %. Judge Fair described potential 2013 enhancements:
• Credit card entry at every clerk station
• Ability to make online payments
• Convert to a paperless court
City Council
Council President Peterson reported he is working with Mr. Hunstock and Senior Executive Council
Assistant Jana Spellman on reducing travel and supplies budgets.
Mr. Hunstock summarized a lot of information was provided tonight but not a lot of specifics. There are
still some moving targets including nonrepresented compensation, health insurance and the Capital
Improvement Plan. There will be a lot of potential impacts on service levels both internally and
externally. A lot of hard decisions have been made that will be incorporated into the preliminary budget
that will be presented to the Council on October 16. The budget Mayor Earling presents on October 16
will be a balanced budget; once it is presented, it becomes the Council's budget. He recommended any
changes be accompanied by new revenue sources or other cuts to keep the budget balanced. Today he
emailed Councilmembers the additional information to be included in the 2013 preliminary budget
document. This will include historical information, charts, organizational charts with positions, some
policies, actual salaries rather than a range by position, etc.
Mayor Earling expressed his thanks to staff who have taken on the unpleasant task of cutting $1.5 million
from the budget. Staff has been enormously professional. There are obvious reductions in staff even with
the VSIP. All departments have had to make considerable compromises and work cooperatively.
With regard to pavement preservation, Council President Peterson asked if there were other TBD funding
options. Mr. Williams answered there are a variety of funding options via the state statute that authorizes
TBDs such as sales tax, property tax and vehicle license fee but all require a public vote.
Council President Peterson inquired about allocating REET funds to pavement preservation. Mr.
Williams answered one of the REET funds is eligible for all capital projects including streets.
8. REPORT ON OUTSIDE BOARD AND COMMITTEE MEETINGS
Councilmember Bloom reported on the following:
• SeaShore Transportation: State Senator David Frockt provided a summary and encouraged all
municipalities to be consistent in their recommendations regarding transportation issues and TBD
funding options
• Economic development Commission — subcommittee assignments were discussed. Getting new
members up to speed.
• Lodging Tax Advisory Committee — approved an increase in the advertising allocation for the
ECA
Councilmember Petso reported the Lake Ballinger Forum met today. The issues discussed will be
forwarded to a Council committee for further discussion. She requested a Councilmember replace her on
the committee, explaining the committee works with neighboring jurisdictions with the goal of
eliminating flooding and improving water quality in the Lake Ballinger and Lake Forest Park areas.
Councilmember Buckshnis reported WRIA 8 has not had a meeting this quarter. Snohomish County
Tomorrow (SCT) is discussing mediation between cities regarding the municipal urban growth areas.
SCT also plans to discuss coal trains and their impacts on cities. SCT is also working on the inter -
jurisdictional housing memorandum.
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September 25, 2012
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Councilmember Johnson reported Councilmember Fraley - Monillas and she attended the Parking
Committee meeting that included discussion regarding the need for more commuter parking for Sound
Transit. This will be discussed again at a future meeting. The Historic Preservation Commission is
researching whether sidewalk impressions identifying the street as George Street can be incorporated into
the Main Street project.
9. MAYOR'S COMMENTS
Mayor Earling reported he attended the ribbon cutting ceremony for the new multi - family project on
Edmonds Way, Compass Apartments. The project feels very different inside than it does from the street;
it is very high quality construction and is fully leased. He summarized that is a sign of the need and the
ability of the community to attract high quality projects.
Mayor Earling reported the Antique Mall property has been purchased and he was hopeful the new
owners would move quickly to update the facility.
10. COUNCIL COMMENTS
Councilmember Johnson provided a reminder of the dedication of the International Lighting on Highway
99 on Thursday at 11:30 a.m.
Councilmember Johnson welcomed Student Representative Yaelle Kimmelman. She explained a plaque
in the Council office lists all the Student Representatives since 1980; Ms. Kimmelman is the 72nd student
representative. The program has expanded over the years; the first student served only a month, Ms.
Kimmelman will serve for the school year.
Council President Peterson reported the Community Solar program celebrated the completion of phase 2
on the Frances Anderson Center roof. Phase 2 significantly increased the number of solar panels installed
in phase 1. The power generated in 2012 was 10% greater than originally anticipated. He commended the
group of volunteers for the incredible amount of work they have done. He also thanked City staff for
processing the permits in a timely manner so the project could be completed and qualify for grants.
Councilmembers Buckshnis and Petso welcomed Student Representative Yaelle Kimmelman.
Councilmember Bloom reported the Tree Board is preparing an Arbor Day celebration and plans to have
a booth at the last Summer Market. The Tree Board is preparing a report with recommendations that they
will present to the Council before yearend.
11. CONVENE IN EXECUTIVE SESSION REGARDING POTENTIAL LITIGATION PER RCW
42.30.110(1)(i).
At 9:58 p.m., Mayor Earling announced that the City Council would meet 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: Mayor Earling, and Councilmembers Johnson, Buckshnis,
Peterson, Petso and Bloom. Others present were City Attorney Jeff Taraday, Interim Development
Services Director Rob Chave and City Clerk Sandy Chase. The executive session concluded at 10:20 p.m.
Mayor Earling reconvened the meeting at 10:21 p.m. and adjourned the meeting at that time.
Edmonds City Council Approved Minutes
September 25, 2012
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