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12/21/2010 City Council1. EDMONDS CITY COUNCIL APPROVED MINUTES 1• �• 1 1 At 5:30 p.m., Mayor Cooper announced that the City Council would meet in executive session regarding real estate negotiations and labor negotiation strategy. He stated that the executive session was scheduled to last approximately 90 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 Cooper, and Councilmembers Bernheim, Plunkett, Fraley- Monillas, Buckshnis, Peterson, Petso and Wilson. Others present were City Attorney Scott Snyder, Human Resources Director Debi Humann, Public Works Director Phil Williams, Transportation Engineer Bertrand Hauss, City Engineer Rob English, and City Clerk Sandy Chase. The executive session concluded at 6:50 p.m. The regular City Council meeting was called to order at 7:00 p.m. by Mayor Cooper in the Council Chambers, 250 5`t' Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Mike Cooper, Mayor Steve Bernheim, Council President D. J. Wilson, Councilmember Michael Plunkett, Councilmember Lora Petso, Councilmember Adrienne Fraley- Monillas, Councilmember Strom Peterson, Councilmember Diane Buckshnis, Councilmember ALSO PRESENT Peter Gibson, Student Representative APPROVAL OF AGENDA STAFF PRESENT Al Compaan, Police Chief Gerry Gannon, Assistant Police Chief Stephen Clifton, Community Services/Economic Development Director Phil Williams, Public Works Director Lorenzo Hines, Finance Director Rob Chave, Planning Manager Carl Nelson, CIO Leonard Yarberry, Building Official Debi Humann, Human Resources Director Frances Chapin, Cultural Services Manager Rob English, City Engineer Renee McRae, Recreation Manager Rich Lindsay, Parks Maintenance Manager Scott Snyder, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO AMEND THE AGENDA TO ADD "INTERURBAN TRAIL EASEMENT SETTLEMENT" AS ITEM IIA. APPROVE THE AGENDA IN CONTENT AND ORDER AS AMENDED. MOTION CARRIED CONSENT AGENDA ITEMS Councilmember Wilson requested Item Q be removed from the Consent Agenda. Edmonds City Council Approved Minutes December 21, 2010 Page 1 COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF DECEMBER 14, 2010. C. APPROVAL OF CLAIM CHECKS #122847 THROUGH #123002 DATED DECEMBER 16, 2010 FOR $345,31.8.86. D. ACKNOWLEDGE RECEIPT OF A CLAIM FOR DAMAGES FROM EILEEN BEAN ($100.00). E. REPORT ON FINAL CONSTRUCTION COSTS FOR THE EDMONDS HISTORICAL MUSEUM EXTERIOR REPAIRS PROJECT AND COUNCIL ACCEPTANCE OF PROJECT. F. ACCEPTANCE OF PROJECT FOR TALBOT ROAD/PERRINVILLE CREEK IMPROVEMENT AND HABITAT ENHANCEMENT PROJECT, PHASE I. G. AUTHORIZATION TO ADVERTISE A REQUEST FOR QUALIFICATIONS TO COMPLETE FINAL DESIGN AND RIGHT OF WAY ACQUISITION FOR THE 228TH STREET SW CORRIDOR IMPROVEMENT PROJECT. H. AUTHORIZATION TO ADVERTISE A REQUEST FOR QUALIFICATIONS TO COMPLETE THE DESIGN PHASE OF THE MAIN STREET DECORATIVE LIGHTING AND SIDEWALK ENHANCEMENT PROJECT. I. AUTHORIZATION FOR THE MAYOR TO SIGN THE MUNICIPAL STORMWATER CAPACITY GRANT PROGRAM AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND THE CITY OF EDMONDS FOR $178,115. J. AUTHORIZATION FOR THE MAYOR TO SIGN ADDENDUM NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT WITH HERRERA ENVIRONMENTAL CONSULTANTS FOR DESIGN AND PERMITTING SUPPORT FOR THE TALBOT ROAD/PERRINVILLE CREEK DRAINAGE IMPROVEMENT PROJECT (PHASE H). K. APPROVAL OF THE REAPPOINTMENT OF RICK SCHAEFER TO A 4 -YEAR TERM ON THE ARCHITECTURAL DESIGN BOARD, AND ANDY ECCLESHALL FOR A 3 -YEAR TERM ON THE HISTORIC PRESERVATION COMMISSION. L. AUTHORIZATION FOR THE MAYOR TO SIGN AN EXTENSION OF AGREEMENT FOR LEGAL SERVICES WITH OGDEN MURPHY WALLACE PENDING COMPLETION OF THE REQUEST FOR PROPOSAL PROCESS. M. AUTHORIZATION FOR THE MAYOR TO SIGN AN ADDENDUM TO THE LAND USE HEARING EXAMINER SERVICES AGREEMENT PENDING COMPLETION OF THE REQUEST FOR PROPOSAL PROCESS. N. HEARING EXAMINER'S ANNUAL REPORT. O. RESOLUTION NO. 1238 — ESTABLISHING FEES FOR THE COPYING AND TRANSCRIPTION OF PUBLIC RECORDS. P. ORDINANCE NO. 3829 — AMENDING EDMONDS CITY CODE (ECC) 8.64.060, UPDATING PARKING PROVISIONS ON BELL STREET. R. EXTENSION OF PUBLIC DEFENDER CONTRACT THROUGH FIRST QUARTER 2011. Edmonds City Council Approved Minutes Deceinber 21, 2010 Page 2 ITEM O: CAMPING ORDINANCE Councilmember Wilson advised he was absent from a portion of the Public Safety Committee meeting when this item was reviewed. He requested additional time to work on the ordinance before Council adoption. Councilmember Fraley- Monillas asked what areas in the ordinance Councilmember Wilson was interested in working on. Councilmember Wilson explained under the proposed ordinance, it would be a criminal offense for a homeless person to live in their car; he wanted an opportunity to work on that since the Council had made assisting the homeless a priority issue. Councilmember Fraley- Monillas commented her understanding was the ordinance referred to camping within City parks. Councilmember Wilson referred to language in the ordinance regarding any park, street or public owned parking lot or public area improved or unimproved. Councilmember Plunkett asked whether adoption of the ordinance was time sensitive. Assistant Chief Gerry Gannon advised it was not. It was the consensus of the Council to schedule this item on the January Public Safety Committee agenda. PEGGY P. .1 Councilmember Peterson explained it was his honor to present the resolution to name the Edmonds Library Building in honor of Councilwoman Peggy Pritchard Olson. The Library Board as well as the Sno -Isle Library unanimously endorsed the resolution. Councilmember Peterson read the resolution naming the Edmonds Library Building in honor of Councilwoman Peggy Pritchard Olson. COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER WILSON, FOR APPROVAL OF RESOLUTION 1239, NAMING THE EDMONDS LIBRARY BUILDING IN HONOR OF COUNCILWOMAN PEGGY PRITCHARD OLSON. Councilmember Plunkett asked if the library was a park and if the Council was required to follow the procedures for naming a park. City Attorney Scott Snyder answered staff would need to research the City's Park Plan to determine which properties were designated as parks. Councilmember Plunkett asked the ramifications of naming the library building in honor of Councilwoman Olson and later determining the library was a park. Mr. Snyder stated there was no monetary liability or risk. The naming procedures could be amended at any time at the Council's discretion. Councilmember Wilson commented the park naming ordinance requires the Planning Board review names and provide a recommendation to the Council. The Council then has total authority to select a name of their choosing. He recalled Councilwoman Pritchard Olson led a campaign in 2000 to save the library and annex to the Sno -Isle Library System. He concluded there was no better way to honor her memory and service than naming the library building in her honor. MOTION CARRIED UNANIMOUSLY. Councilmember Peterson relayed Norm Olson's appreciation to the Council, Mayor and audience members for their support of the resolution. Human Resources Director Debi Humann explained the purpose of this presentation was to review the process that the Health Benefits Committee (HBC) conducted over the past 18 months to identify new citywide medical plans and to provide a recommendation regarding medical plan changes. She expressed her thanks to the members of the HBC: Larry LaFave, Teamsters; Ed Siebrel and Cindi Cruz, SEIU; MaryAnn Hardie, Human Resources Assistant; and Jack Loos, the volunteer community consultant. Edmonds City Council Approved Minutes December 21, 2010 Page 3 In response to the ever increasing costs of health insurance and spurred on by AWC's announcement to discontinue both of the City's medical plans effective December 31, 2011, the City formed a Health Benefits Committee. The initial meeting of the HBC took place in April 2009. The goals of the HBC were to research and recommend city -wide health insurance plans that: • Replace the two plans being eliminated in 2011. • Provide adequate health insurance protection for our employees, elected officials and their families. • Can be used to promote retention as well as recruitment of staff and elected officials. • Meet the financial needs of the city, i.e., do not result in increased costs and, preferably, result in cost savings. To educate themselves regarding health insurance, the Committee met with representatives of AWC, Benefits West, LBG Advisors, C1earPoint, PEBB, Teamsters, Copperleaf, Sound Consulting, and VEBA Service Group LLC. The HBC explored self- insured plans, partially funded plans, fully funded plans, high deductible plans, and plans that combined plan elements. Following their education, the HBC agreed that in order to make a diligent and responsible recommendation to Council, the City needed to go to the market place to determine what other health insurance options were available outside of AWC. An RFQ was advertised on April 5, 2010 with a deadline of April 23. Following the RFQ, three brokers were selected to move forward to an RFP process. The deadline for the RFP submittal was May 14, 2010. After reviewing the submitted proposals, and meeting several times with the top candidates, Wells Fargo was selected as the City's broker. This selection was due, in part, to Wells Fargo's success in moving another city from AWC to an outside plan. The HBC met with Wells Fargo and finalized the scope of work on July 29. On approximately August 1, Wells Fargo went to the market on the City's behalf and shopped our work force with various providers including AETNA, CIGNA, Premera Blue Cross, Regence Blue Shield, Group Health, Healthnet, and United Healthcare. Wells Fargo presented their analysis of the marketplace to the HBC with their recommended alternative medical, dental and vision plans on October 5. As explained at the October 12, 2010 Finance Committee meeting, much to the surprise of the HBC and Wells Fargo, the big players in the health insurance market either would not quote the City of Edmonds or would only quote well above AWC's current premium level. Further research revealed that several of the health insurance carriers, such as Regence and Washington Dental, held non - compete agreements with AWC which prevented them from providing competitive quotes on any group currently covered under an AWC program. When contacted by Wells Fargo, Premera quoted 35% above AWC's rates and Delta Dental, because we are currently with AWC, would only quote the standard rate (opposed to preferred) which is 9.72% above AWC's. After reviewing and analyzing the market based materials from Wells Fargo, and also acknowledging that Health Care Reform will also add additional complications and expenses to all health care plans in the coming years, it was the unanimous decision of the broker Wells Fargo, the HBC, and Jack Loos that none of the quoted fully funded or self- insured plans would meet the needs and goals of the City from a benefit or a cost containment perspective. This information was reported to the Finance Committee on October 12. As a result of these findings, the HBC met with AWC to review and discuss alternative health plans. After careful review of all AWC plans, the Health Benefits Committee recommends allowing all city employees and elected officials to self - select to one of the two AWC plans as follows: The $10 Group Health Co -Pay Plan which replaces the $5 Group Health Co -Pay Plan The HealthFirst Plan which replaces Plan A Edmonds City Council Approved Minutes December 21, 2010 Page 4 The new plans, while providing preventive health care which the current Plan A does not, do result in decreased benefits to employees and elected officials. The decreases include co -pays not previously paid by employees and a reduced benefit for hospital stay. The two recommended plans do, however, meet the goals of the HBC as they: • Are plans that are available immediately to City employees, elected officials and their families. • Provide adequate health insurance protection for all users. • Provide a vehicle to promote retention of skilled staff as well as a recruitment tool when appropriate. • Will result in a decrease in premium expenses for the City and employees. If the City moves to the two plans as outlined above, it is estimated that the total premium savings city -wide on a monthly basis, would be slightly over $29,000 /month or approximately $352,000 annually. The savings are estimated total savings that do not reflect premium share with employees or the premium costs for LEOFF 1's. With Council approval, the timing for this move will be negotiated with the City's four unions through the collective bargaining negotiating process. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT BERNHEIM, TO APPROVE THE RECOMMENDATION OF THE HEALTH BENEFITS COMMITTEE REGARDING NEW HEALTH INSURANCE PLANS. Councilmember Wilson commented getting the City's medical benefits in line with reality has been a priority of his since becoming a Councilmember. He viewed AWC as a poor partner as evidenced by the non - compete agreements with healthcare providers which required a city to incur significant expenses the first year to change plans. He looked forward to ending the City's partnership with AWC with regard to healthcare insurance in the future. The City's current healthcare insurance does not cover wellness such as immunizations. The new plan increases co -pays which he found acceptable, but covered only 90% of a hospital stay. He agreed with employees participating in the cost of their healthcare but did not agree with the reduced benefit for hospital stays. He encouraged employees to be open minded to a plan that would limit catastrophic expenses and allow employees to participate in the cost of basic primary care. MOTION CARRIED UNANIMOUSLY. Mayor Cooper commented one of the first briefings he received when appointed Mayor was from Ms. Humann on the NBC's work. He thanked the HBC for their work on this issue. 5. MUNICIPAL EMPLOYEES' BENEFIT TRUST (MEBT) PLAN AMENDMENT, EFFECTIVE JANUARY 1, 2011 . TO MAINTAIN THE STATUS -QUO 2010 CONTRIBUTION LIMITS. Police Chief Al Compaan, Chair, MEBT Plan Committee, explained the proposed amendment is required due to changes in the federal tax legislation approved by Congress last week. The City has participated in MEBT since 1977. The employer and employee contribution rates have mirrored Social Security rates. The 2011 tax legislation includes a temporary 2% reduction in employee contributions to Social Security. The federal legislation does not change the employer contribution rate. Although the City does not participate in Social Security, the temporary reduction in the employee contribution rate impacts MEBT. In order to maintain the status quo employee contribution rates of 6.2 %, a plan amendment is required. Absent a plan amendment, the employee contribution rates will decrease to 4.2% during 2011. Such a decrease would be a departure from the status quo and result in a decrease in the amount an employee can contribute to MEBT on a pre -tax basis and may negatively impact employee account balances long term. MEBT legal counsel, the City Attorney and the Edmonds MEBT Plan Committee, comprised of appointed and elected MEBT participants, have reviewed the amendments and unanimously recommend adoption. For Councilmember Fraley- Monillas, Chief Compaan commented if an employee contributed at a lower rate, their account balance at the time of retirement could be lower. Edmonds City Council Approved Minutes December 21, 2010 Page 5 COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE MEBT PLAN AMENDMENT. MOTION CARRIED UNANIMOUSLY. i��►` I►`[ il: �I�i�11Y )71Y�tlY11•/�1WI[i],3�1�`� City Attorney Scott Snyder referred to his written report included in the Council packet. In view of the Council's desire for transparency, smooth operations as well as establish a process for future Council's, he suggested the Council consider confirming its operating procedures with regard to the Council President and committee structure via resolution. For example, he recalled the Council President indicating earlier this year that Consent Agenda items should first be reviewed by a committee. He then invited the Council to ask questions and expressed his appreciation for the opportunity to serve the City. Councilmember Buckshnis asked if an ordinance that states financial statements or month -to -date actual numbers are "requested" rather than "required" would allow those items not to be provided. Mr. Snyder explained RCW 35A.33 gives very specific direction regarding the City's financial reporting and compliance with State Auditor requirements. Many cities have alternative /shadow documents that clarify government accounting methods. He recalled the two ordinances related to financial policies were directive with regard to items the Council can direct by statute and requested other items. Mr. Snyder explained the Council may request the Mayor direct staff and the Mayor determines staff times and priorities. The "request" language reflects the realities of State statute. Councilmember Buckshnis noted other cities' financial practices are not in an ordinance or resolution, but good, sound policies that follow the Government Finance Officers Association's booklet. She asked what would be needed in the coming year to get clarity with regard to the General Fund and fund balances. Mr. Snyder stated the Council has done what they could do legally; the remainder was staff time, priorities and budget decisions. It was his understanding Mayor Cooper has committed to providing those materials in the first quarter. Councilmember Wilson recognized Ogden Murphy Wallace worked with several cities. He asked how the Council might consider reorganizing Council committees. Mr. Snyder responded State statute provides a structure and each city develops its internal mechanisms. The Council is a legislative body and acts as a whole. If powers are delegated to committees, the committees are subject to the Open Public Meetings Act. He suggested recommendations be made to the Council and the Council as a whole take action particularly when directing staff time. He recommended committees make motions to establish a record of discussions /decisions, ensure that meetings occur with notice and that agendas are posted on the City's website. Councilmember Fraley- Monillas referred to Mr. Snyder's memo and his suggestion that the Council set aside the reduction in the legal budget in a contingency fund. She asked if that suggestion was because he believed the additional funds would be needed. Mr. Snyder referred to the survey of other cities' legal expenses that found Edmonds was approximately in the middle. He acknowledged there were efficiencies; his suggestion with regard to placing the additional funds in a contingency account was due to, 1) the City was spending approximately what could be expected to be spent and what has been spent historically over the past 2 -3 years, and 2) the City is conducting an RFQ for a City Attorney and will have an opportunity to negotiate with the provider. For those reasons, rather than budgeting 20% less than the City has spent in the last 3 years, he suggested placing the additional funds in a contingency account where funds could be released by the City Council. Although the Council has been meeting in executive session more frequently and has provided earlier input on legal strategies, there have been unbudgeted legal expenses. Mr. Snyder summarized the Council rarely made the choice to engage in litigation; the Council typically responded to situations. 7. ANNUAL REPORT - PUBLIC DEFENDER Public Defender James Feldman commented 2010 was average in terms of working with the courts. The only difference was the addition of the in- custody jail calendar. In the past, officers brought defendants to the Municipal Court from the Snohomish County and Lynnwood jails and proceedings took 1 -3 hours depending on the charge. That is now done while defendants are in custody at the Snohomish County Jail. This reduced Edmonds City Council Approved Minutes December 21, 2010 Page 6 security issues as well as transport costs although it added a requirement for them to meet with defendants at the Snohomish County Jail. The video in- custody calendars take longer because the parties are not all physically present in the court. He explained in the past, attorneys in his office were assigned by calendar and as a result, defendants often meet with different attorneys during the process. That has been changed and specific attorneys are designated to handle the majority of defendant contacts in each city. The 2011 contract includes a cost increase to cover the increased work associated with in- custody calendars. Their office, Feldman & Lee, handles seven cities; Edmonds is the only city that still calculates compensation on a per -case basis, the other cities have gone to a flat fee. The City can choose to either continue the per -case basis or convert to a flat monthly fee. He anticipated the City would have approximately 1,000 appointments by yearend 2010. In July 2010 the Washington State Supreme Court stated their intent to develop standards for public defense representation and to require the attorney providing services state under oath that he /she complied with the standards. The originally proposed date for the standards was September 1, 2010. The State realized no standards exist and the requirement was postponed to September 2011. The State Bar Association was asked to form a committee to develop standards. The proposed standards would limit representation in misdemeanor cases to no more than 400 cases per attorney. Edmonds' existing case load is currently at approximately 2.5 attorneys. There is also a proposal that the public defender receive the prevailing rate of the city attorney in the jurisdiction. Additionally the standards require a certain number of paralegals and investigators for each staff attorney. The State Bar Association has recommended adherence to the standards be postponed until January 1, 2013 to allow jurisdictions to prepare for the increased costs. A definition will also be developed for "appointments." Their firm currently sees 8 -9 people each session or approximately 20 /week that they are not officially appointed to represent and for which they do not currently bill. It is unclear how the guidelines will impact that practice. If each time an attorney talked to an individual it was considered an appointment, the City would have approximately 1,500 -2,000 appointments /year. Councilmember Fraley - Monillas commented the City appeared to be paying the same as it paid before video conferencing. Mr. Feldman answered the City paid approximately $11,300 /month through November. He proposed either a flat fee of $13,000 per month or to add $1600 -$1700 /month to the same per -case basis for the in- custody calendars. He summarized either way was approximately the same; his intent was not a greater increase via the flat fee. For Councilmember Fraley - Monillas, Mr. Feldman explained in the past, in- custody hearings were done while they were at the court on other public defender cases. Now they go to the jail twice a week to handle in- custody calendars. That additional cost was factored into the proposed increase. 8. PUBLIC HEARING ON A PROPOSED ORDINANCE ADOPTING AMENDMENTS TO THE FOLLOWING COMPREHENSIVE PLAN ELEMENTS: 2010 COMPREHENSIVE WATER PLAN; 2010 . STORM AND SURFACE WATER PLAN; 2010 STREET TREE PLAN; 2010 . UPDATE TO THE COMPREHENSIVE PLAN PURPOSE EFFECT AND CONTEXT STATEMENTS; THE 2010 CAPITAL FACILITIES PLAN; AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. Planning Manager Rob Chave explained the Council requested an additional public hearing on all the Comprehensive Plan amendments the Council reviewed throughout the year. The most significant updates were to the Comprehensive Water Plan and the Storm and Surface Water Plan. There were also clarifying amendments to the Street Tree Plan and minor amendments to the Comprehensive Plan purpose and scope to address regional planning, updates and consistency with the Sustainability Element. The amendments also include the annual update to the Capital Facilities Plan (CFP). Mayor Cooper opened the public participation portion of the public hearing. Edmonds City Council Approved Minutes December 21, 2010 Page 7 Roger Hertrich, Edmonds, expressed support for retaining the language, "meets the Comprehensive Plan." He noted the Architectural Design Board's motions require they state their decisions meet the Comprehensive Plan. Next, he invited Councilmember Petso to speak to the difference between her and Mr. Chave's interpretations. Finis Tupper, Edmonds, commented the Comprehensive Water Plan was several years late according to the Growth Management Hearings Board. He expressed concern with the tendency for plans to be shelved and for there to be no follow through. When the original Water Plan was approved, the Council directed staff to minimize water leakage. He asserted that Edmonds' water leakage rate was much higher than surrounding cities; Edmonds was losing more than 10% of its water via leaks. Because the City purchases its water from Alderwood Water, leaks cost the City money. He recommended the Council direct staff to address leaks, noting reducing leakage was a sustainable practice. He questioned why flooding issues on Dayton had not been addressed during construction that had occurred in that area during the past two years. Mayor Cooper closed the public participation portion of the public hearing. Councilmember Petso explained she met with Mr. Chave and City Attorney Scott Snyder on November 5; the packet includes a memo from Mr. Snyder regarding their discussion. As a result of that discussion, a compromise was reached to leave in a reference that projects will comply with the Comprehensive Plan but in a manner that Mr. Chave and Mr. Snyder did not feel would impair the City's ability to do business. Councilmember Petso explained one of the purposes in the Plan is to facilitate adequate provision for public services; she preferred the City provide better than adequate services, noting some areas that experienced flooding recently do not even have adequate service. She suggested retaining the existing language, to facilitate adequate public services, and to add a new section that incorporates the proposed new language, to facilitate the provision of sustainable public services consistent with the community's values and needs. Councilmember Wilson asked Public Works Director Phil Williams to comment on Mr. Tupper's statement regarding the City's leakage percentage and whether 10% was a lot relative to other cities. Mr. Williams agreed the City's unaccounted for water, the difference between water billed to customers versus the amount of water the City purchased from Alderwood Water, was approximately 10 %. He commented a rate of 10% was not unusual; some cities' rates are lower and many have a much higher rate. He agreed it was a good idea to minimize that percentage as part of maintenance and operation functions. Councilmember Wilson commented on the limited amount the City spends on its streets and lack of funding for overlays. He inquired about the waterline replacement schedule. Mr. Williams answered the Comprehensive Water Plan includes a target of replacing 1% of the City's waterlines each year. With a replacement rate of 1% per year, it will take 100 years to replace all the City's waterlines. He noted aging infrastructure is a problem facing all cities. Maintenance costs, outages and damage costs increase exponentially if infrastructure replacement is not addressed. He pointed out the City will spend approximately $3.5 million in 2011 for new waterlines. Mr. Chave advised the amendment referenced in Mr. Snyder's memo is already incorporated in the language and does not require a Council amendment. With regard to Councilmember Petso's suggestion regarding adequate, he suggested inserting "to facilitate the provision for adequate and sustainable." COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO REINSTATE THE PRESENT POLICY AS IT WAS PREVIOUSLY (TO FACILITATE PROVISION OF PUBLIC SERVICES SUCH AS TRANSPORTATION, POLICE AND FIRE PROTECTION, WATER SUPPLY, SEWAGE TREATMENT, AND PARKS), AND ADD "TO FACILITATE THE PROVISION OF SUSTAINABLE PUBLIC SERVICES CONSISTENT WITH THE COMMUNITY'S VALUES AND NEEDS." Edmonds City Council Approved Minutes December 21, 2010 Page 8 Councilmember Wilson asked whether the proposed amendment was substantive enough to require another public hearing. Mr. Snyder answered the test is whether it is within the range of alternatives considered; since the proposed amendment is to combine two alternatives, it met the test. AMENDMENT CARRIED UNANIMOUSLY. COUNCILMEMBER FRALEY- MONILLAS MOVED, SECONDED BY COUNCILMEMBER PETSO, TO ADOPT ORDINANCE NO. 3830, ADOPTING AMENDMENTS TO THE FOLLOWING COMPREHENSIVE PLAN ELEMENTS: 2010 COMPREHENSIVE WATER PLAN; 2010 STORM AND SURFACE WATER PLAN; 2010 STREET TREE PLAN; 2010 UPDATE TO THE COMPREHENSIVE PLAN PURPOSE, EFFECT AND CONTEXT STATEMENTS; THE 2010 CAPITAL FACILITIES PLAN. Councilmember Wilson commented the Council was adopting five elements of the Comprehensive Plan via these amendments. He expressed support for the Comprehensive Water Plan and the Storm and Surface Water Plan. He was concerned that the Street Tree Plan did not contain enough protections for mature trees in pedestrian zones of importance. With regard to the CFP, there are no significant funds budgeted to maintain the City's facilities. He could not support the amendment to the Comprehensive Plan for those reasons. MOTION CARRIED (5 -2), COUNCILMEMBERS PLUNKETT AND COUNCILMEMBER WILSON VOTING NO. 9. AUDIENCE COMMENTS Chris Johnson, Edmonds, commented the purpose of government was to keep order via the collection and disbursement of taxes as well as law enforcement. He expressed concern that the City had not been keeping order particularly on Daly Street. He referred to the five -year Thuesen -Reidy dispute, suggesting that was not an example of officials keeping order in the community. With regard to renewing the City Attorney's contract, he pointed out Mr. Snyder's recommendation regarding a temporary construction easement was outside his expertise. He asserted that recommendation started the litigation that cost taxpayers, the Reidys and Mr. Thuesen a great deal of money. The only entity that profited from litigation was the City Attorney. He inquired about the amount the City spent on legal costs throughout the year. Joan Bloom, Edmonds, requested the Council investigate the delay in publishing the Critical Areas Ordinance and to hold those responsible for the delay accountable. The new CAO was passed by the Council on November 23, 2004 but not published until February 10, 2005, 79 days later. The Thuesen development application was submitted on January 18, 2005. As publishing an ordinance is a ministerial duty only, she asserted the delay in publishing cannot legally delay the effective date of the ordinance. In this case, the ordinance was passed by Council on November 23, 2004 and became effective shortly thereafter in 2004 despite the fact that the ordinance was not published until February 2005. Council President Bernheim has been provided case law that supports this conclusion. This is important because the developer was allowed to vest under the old CAO. If Mr. Snyder had informed staff that the new CAO was in effect prior to the submittal of Mr. Thuesen's application, taxpayer dollars, litigation costs, staff time and court costs could have been saved; private citizens spared the expense, time and stress of the past 5� /z years; and a valuable resource would have been protected. She commented on damage to the wetland as a result of partial filling, clearing and grading by the property owner. Ron Wambolt, Edmonds, commented he did not object to the Council's action regarding the new healthcare plans but was disappointed the presentation did not clarify that the $300,000 savings was from what the City would have paid in 2011 for the same plans, not what the City paid in 2010. He summarized there would be no savings in 2011; healthcare costs would actually be higher. Dave Page, Edmonds, referred to Lynnwood's financial disaster and the need for Lynnwood to cut $22.6 million to balance their budget. He recognized that most towns, counties, cities and the State are upside down with regard to their budgets. A member of the original levy committee, it was his understanding the Council was ready to place a levy on the ballot but that never materialized. He viewed Edmonds as a well run city. He Edmonds City Council Approved Minutes December 21, 2010 Page 9 expressed concern with economic studies that have been conducted in the past that did not produce any results. He anticipated the Council's recent decision to spend $100,000 on a strategic plan would be a waste of money. He urged the Council to show leadership and do some of that work themselves. Roger Hertrich, Edmonds, commented the RCW regarding use of REET funds does not list Public Works as a category for the use of REET 1 funds. The REET fund is burdened by bonded indebtedness from City Hall as well as the Public Works facility. He asserted payment of debt with REET funds was illegal because, 1) the RCW did not allow funding of Public Works facilities with REET funds, and 2) RCW 82.46.035.3 does not allow new bonded indebtedness from the REET fund after 1992. Next, he questioned why the 2010 ending cash balance differed from the 2011 beginning cash balance. Councilmember Buckshnis asked Human Resources Director Debi Humann to respond to Mr. Wambolt's comments regarding the savings for the healthcare plan. Ms. Humann explained the premium savings are easy to determine via AWC's website; the HealthFirst Plan is significantly less than Plan A. When premiums for all employees and their families were determined, the savings was $352,000 /year less than what the City would pay for Regence Plan A. Mayor Cooper clarified it was $352,000 less than the City would be paying for Regence Plan A and Group Health in 2011. Ms. Humann agreed. Mayor Cooper advised that was slightly less or the same as the City was paying in 2010. Ms. Humann agreed it would bring premium costs below what the City paid in 2010. 10. CONTINUED DISCUSSION AND POSSIBLE ADOPTION OF THE 2011 BUDGET. Mayor Cooper advised there was a motion on the table from the December 7, 2010 meeting to adopt the budget. Councilmember Plunkett asked the City Attorney's opinion regarding Mr. Hertrich's assertion that debt was being paid illegally with REET funds. Mr. Snyder stated he was unfamiliar with the matter as the Council uses bond counsel for bond issues. Public Works Director Phil Williams explained the bond relates to the development of the Public Works Operations Center that staff began occupying in 1994. The total cost of the project at that time was approximately $3.5 million. The Water and Sewer Utilities, which were the only City utilities at that time, occupied certain spaces in the building. Their share of the project, based on square footage, was calculated and amounted to approximately $2.42 million of the total $3.5 million. That was financed via revenue bonds issued by the 411 Combined Utility Fund. The Water and Sewer Utilities continue to pay the debt service on that portion. The difference between what the Water and Sewer Utilities pay and the total cost of the project is $1.075 million. That amount is paid by the remaining tenants of the property which include the 111 Street Fund, the stormwater function that was a new utility when the bonds were refinanced in 1998 and the General Fund that pays 12.35% of the overall debt service. Those three sources fully service the remainder of the debt on the Public Works Operations Center. No REET funds are used to service the debt on the Public Works Operations Center. Councilmember Plunkett asked where Mr. Hertrich may obtain this information. Mr. Williams acknowledged the City was obligated to provide documents that clearly establish the above explanation; he continues to search for those documents. For Councilmember Plunkett, Mr. Williams explained REET funds are used to service a portion of the debt on the reissued bonds but only on the portion of the bonds related to the City Hall building, not the Public Works building. Finance Director Lorenzo Hines explained the total bond issue, a 1998 refunding, was $4.480 million; $1.075 million was allocated for the Public Works debt and $2.985 million was allocated to City Hall debt. He summarized 73.53% of the bonds are funded with REET, the portion allocated to City Hall debt. The remaining percentage is paid as described by Mr. Williams. Edmonds City Council Approved Minutes December 21, 2010 Page 10 Councilmember Petso referred to a comment by the auditor during the exit interview, "The auditor was unable to determine whether the allocation for repayment of the debt for construction was equitable between the funds." She has not been able to find documentation indicating the debt was being paid properly. She asked about the auditor's next step if the Council approved the 2011 budget. Mr. Snyder responded it was a request by the auditor for the City to show its work; staff is attempting to locate that information. He assured if the Council approved the budget, they could continue working on the issue. The issue was ensuring there were adequate internal accounting procedures to identify funds expended from each source. Councilmember Petso concluded from Mr. Snyder's explanation that she could approve the budget, continue research in 2011 and propose a budget amendment if it cannot be demonstrated that the funds came from an appropriate source. Mr. Snyder explained the first step is to locate and review the information. If adjustments need to be made, they do not necessarily have anything to do with the budget. Councilmember Petso asked the ramification if the auditor returned in 201.1 and no documentation had been located. Mr. Snyder reiterated the auditor was asking the City to show its work. He questioned how that related to the 2011 budget. Mr. Hines explained there were three levels of severity for the auditor's comments, first, the comment at the exit interview to inform the City; second is a management letter, and third, a finding. Given that the auditor saw and tested the journal entries, they simply want to know the allocation methodology. He was confident that Mr. Williams and he could locate the methodology before the auditor arrived in April 2011 to respond to that exit item. In response to Mr. Hertrich's question regarding the difference in the yearend cash balance and the beginning cash balance, Councilmember Petso asked for an estimated ending working capital. Mr. Hines answered he would need to figure that out. He preferred to have a final balance sheet to calculate working capital. Councilmember Petso commented hypothetically if the City ended 2010 with $2.5 working capital, the City will also start 2011 with $2.5 million working capital. Mr. Hines answered theoretically yes. He will update the working capital once a final balance sheet for 2010 is prepared. Councilmember Petso noted on December 7 the Council approved a budget amendment that shows the City ending 2010 with $2 million. Also at that meeting, the Council discussed the 2011 budget that shows beginning cash of $2.8 million. Mr. Hines explained the budget amendment and the current forecast are two different streams. The budget amendment tracks appropriation authority whereas the forecast is actual cash received and spent. Based on the last estimate for the forecast, the actuals indicted the working capital would increase to $2.8 million. However, he will know the actuals once the December books are closed. Councilmember Wilson asked if funds for a compensation consultant to review the Non - Represented Compensation Policy were included in the budget. Councilmember Plunkett stated it was included in the budget; the Finance Committee did not provide a recommendation with regard to hiring a compensation consultant. Councilmember Buckshnis thanked Mr. Hines for the additional exhibits. She noted the packet did not include Police or Administrative Services summaries. Mr. Hines offered to provide that information tomorrow. Councilmember Buckshnis referred to Exhibits 2 and 6, noting there was no indication of the loss of revenue from Fire District 1. Mr. Hines explained the Fire District I revenue stream is spread over a few sources. There is $3.2 million from EMS bonds, $700,000 from EMS transport fees, and some other funds. Councilmember Buckshnis asked the total revenue lost from Esperance and Woodway. Mr. Hines answered he would need to research that. Councilmember Buckshnis inquired about discrepancies between reports with regard to amended revenues. Mr. Hines explained the exhibits in the Mayor's budget are actuals as of July 31, 2010. The General Fund report contains the actuals from the City's accounting system as of last Thursday or Friday. Edmonds City Council Approved Minutes Deceinber 21, 2010 Page 11 Councilmember Buckshnis asked why a working capital was not provided more frequently than once a year. Mr. Hines offered to send her a response. Councilmember Buckshnis referred to page 7 of Exhibit 5, noting Finance and Information Services estimates increased by $97,000, (11 % in Finance and 6.7% in Information Services) compared to other departments that were either the same or decreased. Mr. Hines answered those were estimates as of July 2010. Both amounts are below the 2010 budget; the Information Services budget was below by $3,000 and Finance was below by $19,268. Councilmember Buckshnis pointed out the 2009 actual for Information Services was $464,000 compared to the 2011 budget of $580,000. CIO Carl Nelson explained in 2008 and 2009 negotiations began with Microsoft for increased licensing. Those amounts were budgeted but not spent. He anticipated those would come to fruition in the next few months. That is the primary increase and there are other small adjustments. Councilmember Buckshnis referred to Mr. Snyder's memo regarding the ramification of the Council not passing the budget. She recalled he stated certain departments could be placed in the Council Contingency to get a better understanding of what was going on if the Council was not comfortable. Mr. Snyder explained the budgeting process established by statute is very rigid. As his memo stated, if the Council does not pass a budget, there is no spending authority. Without spending authority to pay salaries, no City services will be provided. In rare circumstances where Councils were unable to reach a consensus on expenses, he has seen budgets passed where monies in excess of 1 -2 months operating costs were placed in the Council Contingency Fund subject to release when the necessary information was provided or the Council reached a majority decision. He offered that as a worst case scenario; if the Council could not reach agreement, that was a tool that could be discussed. Councilmember Buckshnis pointed out unapproved budget amendments have been included in financials; financials have been provided with budget amendments not footnoted; there have been cost overruns with no explanation; etc. Mr. Snyder explained the statute provides that within funds, such as the General Fund, the Mayor has authority to move monies around within an approved budget within each fund to address operating differences between departments. The Council can set limits on the mayor's ability to move monies. Other changes are typically approved by the Council and are approved via mid -year and year end budget amendments. A super majority would be required to revoke an appropriated amount. If the Council wished to restrict spending authority within an approved budget, a contingency fund could be established and funds released on a monthly or bimonthly basis. Councilmember Plunkett asked if the Council could put the entire Finance Department into a special contingency fund in the Council's budget and have authority over those funds and the mayor would have no authority over those funds. Mr. Snyder commented on the difference between the Council's appropriation authority and the Mayor's authority to direct employees. The statute is very clear; the Council appropriates funds but the Mayor directs the actions of the employees on a day -to -day basis. If the Council was not satisfied with information it received or is unable to reach agreement on an item, the funds represented by the items of disagreement or expenditures the Council was not ready to act upon, could be placed into a contingency fund until the necessary information was provided. Councilmember Plunkett's suggestion was to place employee costs tied to a department into a contingency fund; the Mayor continues to direct staff. The Council could place some of the Finance Department's funds in a contingency fund but they would need to be released monthly for salaries. He asked what Councilmember Plunkett hoped to accomplish via his suggestion. Councilmember Plunkett summarized it appeared the Council could do what he suggested. Mr. Snyder answered it would need to be clear that the Council was not impinging on the Mayor's authority to direct staff. Councilmember Plunkett observed funds other than salaries could be placed in a contingency fund. Mr. Snyder agreed the Council could require that contract or capital costs be individually released. The Council could also change its adopted contracting and bidding policies to reduce department heads' discretion. Councilmember Plunkett asked how the absence of the pages Councilmember Buckshnis referenced would effect her decision on the budget. Councilmember Buckshnis answered although she would like to see the actuals in order to do cost comparisons, she was ready to pass the budget. Edmonds City Council Approved Minutes December 21, 2010 Page 12 Councilmember Plunkett advised he learned at the Historic Preservation Commission (HPC) meeting that the $7500 amendment for the HPC was actually for printing of a brochure and newsletter as well as a calendar. Therefore, the Council needed to either, 1) amend the purpose of the funding for the HPC to fund the brochure, newsletter and calendar, 2) if the Council did not wish to fund the calendar, amend the amount to $5,000 for the brochure and newsletter, or 3) acknowledge that the HPC will produce a brochure and newsletter and require that they return to the Council to ask to spend the remainder on a calendar. Councilmember Petso asked Community Services /Economic Development Director Stephen Clifton to explain funding for the webpage update. Mr. Clifton explained a few weeks ago he requested the use of $35,000 of existing funds for a website update. Under the previous contractor's proposal, the expenditure would have been approximately $32,000 in 2010 and $3,200 in 2011. That contractor withdrew; the City hired another contractor and the expenditure will be approximately $16,000 in 2010. . He requested the Council appropriate $15,000 in the Economic Development budget in 2011 with $3,200 from Information Services. The net amount, $35,000, will not change. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCIL PRESIDENT BERNHEIM, TO AMEND THAT THE $7500 ALLOCATED TO THE HISTORIC PRESERVATION COMMISSION BE USED TO FUND A BROCHURE, NEWSLETTER AND A CALENDAR. AMENDMENT CARRIED UNANIMOUSLY. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO ADD THE FUNDING REALLOCATION FOR THE WEBPAGE UPDATE AS DETAILED BY MR. CLIFTON. AMENDMENT CARRIED UNANIMOUSLY. Mayor Cooper relayed the motion on the table made at the December 7 meeting: COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO ADOPT ORDINANCE NO. 3831, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO THE BUDGET FOR FISCAL YEAR COMMENCING JANUARY 1, 2011 AS AMENDED. Mr. Snyder clarified although the Council had amended the exhibits, the proposed ordinance did not change. Councilmember Petso pointed out Exhibit A was not accurate as it appears in the Council packet. Mr. Hines advised Exhibit A would be revised once the budget is adopted. Mr. Snyder advised the Council had reviewed and approved the minutes of the December 7 Council meeting. He assumed the budget amendments reflected in the December 7 minutes would be incorporated into Exhibit A. Mr. Hines agreed. Mayor Cooper advised tonight's packet included a list of all the amendments considered by Council and the amendments that were approved. For Councilmember Petso, Mr. Snyder explained publication of the ordinance will include exhibits amended in accordance with Council motions as reflected in the minutes and the Council packet. Councilmember Wilson explained he would not support approval of the budget due to two fundamental flaws, 1) there is no direction to address major funding concerns — the budget does not move the City toward sustainable funding, and 2) the budget contains a surplus which although is great on paper, is accomplished by not funding some costs which he found irresponsible. At a minimum he encouraged Council to proceed with a levy or Regional Fire Authority (RFA) early in 2011 before they got caught up in next year's election cycle. Councilmember Peterson agreed with several of Councilmember Wilson's points but planned to vote in favor of the budget. He agreed the budget was not perfect and it was a stopgap in addressing serious issues facing the City. He acknowledged there were items in the budget that he disagreed with such as the arbitrary 20% reduction in attorney costs. Overall the staff and Mayor have developed a very lean budget that he could support. Edmonds City Council Approved Minutes December 21, 2010 Page 13 Councilmember Fraley- Monillas advised she would support the budget. The Mayor and staff did as good a job as they could with the revenue available. She expressed her appreciation to the Finance Department for providing exhibits and verifying information. She looked forward to identifying new revenue sources in the future and better ways of spending the revenue the City receives. Councilmember Buckshnis advised she would reluctantly support the budget as amended. She reiterated her quest for clarity in the City's finances that has been lacking for over a year. She expressed concern that the Council's questions, comments and requests have often been ignored. She planned to continue to work with the Citizen Levy Committee and the Council to get financial statements that are similar to other cities that provide a monthly General Fund balance. Although she was reluctant to vote for the budget, Councilmember Petso said she was excited because this may be the first City budget she voted for. She was disappointed the Council did not have the answer to the auditor's questions and that things promised to the Council were not provided such as a breakdown of the Fire District 1 transaction and a schedule of interfund transfers. Because that information was coming, she would support the budget. She also supported the budget due to policy decisions made via budget amendments such as reimbursing the Park Trust Fund Flower Program, expressing the intent to reduce litigation expenses and the decision to spend one -time revenue from the sale of fire equipment on one -time expenditures. She acknowledged not all Councilmembers got what they wanted but it was a budget the City could live with as efforts continued to perfect the system. MOTION CARRIED (6 -1), COUNCILMEMBER WILSON VOTING NO. 11. NON - REPRESENTED COMPENSATION POLICY (NRC) REVIEW. Councilmember Plunkett explained the Council approved the NRC Policy five years ago. The Finance Committee and some other Councilmembers have expressed interest in reviewing the policy which may require hiring a consultant. The question before the Council tonight was whether to review the policy. If the Council chose to review the policy, a future decision will be how the review will be conducted such as via the use of a consultant. Human Resources Director Debi Humann referred to the historical background she provided regarding the compensation policy including the L5 policy adopted in approximately 2000 and the NRC policy adopted in approximately 2005/2006. She acknowledged there were good and bad things about any compensation policy. The purpose of a compensation policy was to retain workforce and recruit employees, not bankrupt the city and to support the goals and vision of the city. The packet also includes compensation policies for nine other cities; the majority are similar to the NRC policy and use the same comparables. Councilmember Plunkett inquired about the steps that should be taken if the Council agreed to proceed with a review of the NRC policy. Ms. Humann answered the Council needed to agree on a scope of work such as the consultant developing comparables and updating job descriptions which has not been done in its entirety since 1997. Councilmember Plunkett envisioned the Council likely could identify 2 -3 issues with the current policy and suggested Ms. Humann could assist with drafting those issues into a scope of work. Councilmember Plunkett identified his issue with the NRC policy by referencing the position of the Mayor's Executive Secretary, assuring it was nothing personal. According to the NRC policy, the top of the range for the position is $80,000 - $85,000. Acknowledging that the position was an Executive Secretary, he felt a salary of $85,000 was too much for that position. He was uncertain how to translate that concern into the scope of work. He suggested the scope also include a review of the bands. Ms. Humann suggested one of the goals could be to have all the non - represented positions reviewed and compared to whatever comparables the City deems appropriate. Edmonds City Council Approved Minutes December 21, 2010 Page 14 City Attorney Scott Snyder advised there were some positions that were directly comparable to positions in other cities. Because the City operates in such a lean manner, there are some positions whose job descriptions are an amalgam of duties. He suggested identifying key positions in each department that are readily comparable. Comparing the one -of -a -kind positions will be very subjective and extrapolation will be required for those positions. Ms. Humann explained that was one of the reasons for adopting the NRC policy. At least one -third of the non - represented positions are not easily matched in other cities. Because of the way Edmonds staffs, positions tend to absorb additional duties and their job descriptions are not relative to other cities. Councilmember Wilson stated the previous Executive Assistant may have been at the top of the range. He noted Ms. Cole, Mayor Cooper's Executive Assistant, is not at that level. He pointed out Ms. Cole has a Juris Doctor degree (lawyer) and is an elected official in the City of Lynnwood and in the Stevens Hospital District. He found Ms. Cole to be very highly qualified, noting Edmonds attracts and retains many highly qualified employees. Mayor Cooper suggested all job descriptions and their location in the bands be reviewed regardless of the position. The difficulty as Mr. Snyder mentioned is comparing job descriptions in other cities. For example in a nearby city, the Mayor has an Executive Assistant and a Receptionist. Edmonds has a Human Resources Director and a Human Resources Analyst; Lynnwood has six people in the Human Resources Department. Councilmember Buckshnis stated her issue was looking at the bands and the job descriptions. She referred to the Council's unsuccessful attempt to move Information Services out of Administrative Services and expressed interest in ensuring departments are properly staffed so that the Council can get the information they need. Councilmember Fraley- Monillas commented this discussion was not about friendships or personalities but taking a holistic look at non - represented compensation. Council President Bernheim asked for more time to review other cities' compensation policies. He noted only one of the cities hired a consultant, a person they were familiar with and who was not expensive. He did not support hiring a consultant, noting the $50,000 cost of a consultant could be better spent on employee salaries. He preferred staff and Councilmembers review the NRC policy in -house over the next six months. Councilmember Plunkett asked Ms. Humann to comment on the suggestion to review the policy in- house. Ms. Humann commented it would be very time consuming. The two projects Human Resources plans to undertake in 2011 are to update the City personnel policies and job descriptions; both will require an incredible amount of time. The City can hire a consultant who will bring a wide variety of ideas and information. The difficulty with a consultant is they do the research and present information; if the consultant determines non - represented employees are paid below the market, it will be up to the Council to determine a way to fund the salary changes. She suggested meeting with cities who have good compensation plans to determine what works /does not work for them and customize a compensation plan that combines elements from several cities. Councilmember Peterson asked the number of non - represented employees. Ms. Humann answered approximately 40. Councilmember Peterson commented even if the City saved 10% on the salaries of these 40 employees, it would not fix the City's budget problems. He summarized reducing labor costs of the already lean workforce would not save the City's budget. Councilmember Peterson asked if any of the other cities' policies looked promising. Ms. Humann answered most of the cities' policies were similar to Edmonds. They all use the same comparable cities, most do not compare to private industry, etc. She noted the use of a similar formula may be why other cities do not typically use consultants. Councilmember Peterson pointed out the need to balance the cost of a consultant with savings via revisions to the compensation policy. He agreed it could be costly if the City found its employees were paid below market. Ms. Humann advised many of the cities compare one -third of their non - represented employees to the marketplace each year or compare all non - represented positions to the marketplace every other year. Due to limited Human Resources staff, Edmonds' policy only does market -based surveys of two positions per year, the highest and the lowest position. She acknowledged this was not adequate but was all Human Resources staff had time to do. Edmonds City Council Approved Minutes December 21, 2010 Page 15 Councilmember Plunkett commented all employees, both union and non - represented, are affected by comparables. Mr. Snyder agreed it could have a ripple effect. Councilmember Fraley - Monillas expressed interest in reviewing the NCR policy. She recognized the City's limited Human Resources staff did not have time to review /revise the policy. She did not envision a change to the policy as chipping away at the non - represented employees salaries; it would be fixing a policy that needed to be fixed. She was interested in determining whether the City's wages were below market, recognizing that when the economy improved, the City will need to have competitive wages. Her research found a comprehensive evaluation could be obtained for a cost of $20,000 - $25,000. She anticipated the 40 non - represented employees would be interested in having an evaluation conducted to ensure their wages were comparable to other cities. She did not envision this as a negative but to move the City into the future and to provide accurate information. Mr. Snyder commented studies can have a number of components, the key components are, 1) creating policy, and 2) benchmarking positions. He cautioned the creation of a public document via a study can be good and bad. There are a number of employees who could unionize and be subject to collective bargaining. A study could provide information that the Council will see again. Councilmember Petso expressed support for reviewing the NRC policy including surveying more positions more frequently, refining the comparables and eliminating the bands. She was hopeful some comparables could be found that would justify the expense and did not believe it could be done in -house due to limited Human Resources staff. Councilmember Wilson commented the City operates like an undercapitalized organization; there is not enough money to operate smartly or efficiently. Things like updating the compensation policy are not accomplished and a $50,000 expenditure is required to update the policy. He found this pennywise and pound foolish, but until the City had a sustainable funding model, anticipated it would continue to happen. Councilmember Peterson commented nationwide there was a feeling that government could save incredible amounts of money by reducing labor costs. Edmonds has been doing that over the past ten years and he did not envision a study would result in a huge net savings or have a big impact on the City's finances. Councilmember Fraley- Monillas commented she was not seeking savings but rather to pay a fair wage and do business better. Councilmember Plunkett summarized a sufficient number of Councilmembers were interested in considering a draft scope of work. He asked Ms. Humann whether she could provide a draft scope of work in the near future. Mayor Cooper advised staff would work with the Finance Committee to develop a scope of work. 11A. INTERURBAN TRAIL EASEMENT SETTLEMENT. Council President Bernheim explained the Council was presented with an easement settlement in executive session to address a construction issue on a portion of the Interurban Trail. COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE STAFF'S RECOMMENDATION WITH REGARD TO THE INTERURBAN TRAIL EASEMENT SETTLEMENT. MOTION CARRIED UNANIMOUSLY. 12. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF DECEMBER 14 2010 Community Services/Development Services Committee Councilmember Peterson reported the majority of items discussed by the Committee were approved on the Consent Agenda. He highlighted the Acceptance of Project for Talbot Road /Perrinville Creek Improvement and Habitat Enhancement Project Phase I and the Authorization to Advertise a Request for Qualifications to Edmonds City Council Approved Minutes December 21, 2010 Page 16 complete the design phase of the Main Street Decorative Lighting and Sidewalk Enhancement Project. The City received a $725,000 federal grant to fund design and construction of the Main Street project; staff continues to seek grants for the project. He expressed his thanks to Mr. Williams and his staff for developing creative funding ideas and for securing the $725,000 grant. Councilmember Petso reported the Committee also discussed a possible amendment to the ECC regarding publication of ordinances. A procedure can be instituted at staff level so that Councilmembers are notified when ordinances are finalized. Public Safety Committee Councilmember Wilson reported the Committee discussed the Camping Ordinance which the Council agreed early on tonight's agenda to delay. The Committee also discussed the less than anticipated amount of EMS Transport Fees. In addition to a third party vendor's software problem, collection of transport fees is significantly delayed, often up to three years. Although collection is delayed, the average of 2009 and 2010 billings is approximately $850,000 which is above the $700,000 budgeted amount. Councilmember Fraley - Monillas advised billings are often delayed a quarter and a percentage of the transport fees will never be collected. Finance Committee Councilmember Plunkett reported the Committee discussed the following: • Monthly Financial Reports — due to workload priorities the November GF report will be released toward the end of December 2010 • Health Insurance Plans — approved by the Council tonight • Resolution establishing fees for copying and transcription of public records — approved on the Consent Agenda • Interlocal Agreement Authorizing Establishment of the Snohomish County Tourism Promotion Area — forwarded to the full Council • Public Comments — Roger Hertrich referenced funding from REET Funds 125 and 126. Bruce Witenberg recommended savings from the new healthcare plan be retained to cover cost increases in 2012. Ron Wambolt urged the Committee to inform Administration that they expect to have reports provided in a timely manner. 13. MAYOR'S COMMENTS Mayor Cooper applauded Public Works Director Phil Williams and Public Works crews for their efforts during the heavy rains this weekend including the sandbags they made available to citizens. ESCA opened their Emergency Operations Center; as this was a Public Works flooding emergency, a decision was made not to open Edmonds' EOC. He toured the City with Public Works and is now acquainted with most of the flooding problems in Edmonds. Mayor Cooper reported the South Snohomish County Commission for Health, formerly the Stevens Hospital Board, is in the process of hiring a CEO. After a CEO is hired, they will develop criteria for health - related programs that will be eligible for grants. No grants have been awarded yet and it is unlikely that the first round of grants will include capital related funds. The Commission is seeking outcome -based programs. Recreation Manager Renee McRae as well as advocacy groups are meeting regularly with Commissioners. He wished everyone a Merry Christmas. 14. COUNCIL COMMENTS Councilmember Fraley - Monillas wished everyone Happy Holidays and Happy New Year. Edmonds City Council Approved Minutes December 21, 2010 Page 17 Councilmember Buckshnis also wished everyone Happy Holidays, peace, to think kindly and to pay it forward. Councilmember Petso expressed holiday wishes. Student Representative Gibson wished everyone Happy Holidays and Merry Christmas. Councilmember Peterson expressed holiday wishes. He thanked Councilmembers and the Mayor for a great year in Edmonds politics. He also expressed his thanks to staff, particularly Ms. Spellman and Ms. Chase. Councilmember Plunkett thanked Council President Bernheim for serving as Council President. He supports rotating the Council Presidency, finding it enhances everyone's experience and appreciation for the job of Council President. He thanked Mayor Cooper for his hard work and leadership over the past six months. He wished everyone Happy Holidays and looked forward to next year. Councilmember Wilson wished everyone Happy Holidays. Council President Bernheim enumerated the Council's 2010 accomplishments: • Repairs to the Carnegie Library building • $10,000 for the UW Five Corners/Westgate Study • Funding for Climate Solutions • Increased stormwater rates that paid for stormwater improvements • Rescinded the increases in the Mayor's salary • $500 Council campaign contribution limit • Appeal process for dangerous dogs • Accepted Mayor Haakenson's resignation • Appointed Mayor Cooper • Financial reporting ordinance • Directed staff to prepare cost estimates on the fiber optic installation and to provide quarterly reports • Request bids for City Attorney • Appointed Councilmember Buckshnis and Councilmember Petso • Appointed Public Works Director Phil Williams • Restored Council authority in Title 20 • Clarified the ambiguity in the perimeter setback in the PRD ordinance • Expanded flexibility in homeless shelters • Adopted the Stormwater Comprehensive Plan • Instituted bistro dining • Expanded dog leashed areas • Permitted wall murals • Established the Tree Board • Established recycling at the Boys & Girls Club 15. ADJOURN With no further business, the Council meeting was adjourned at 9:57 p.m. Edmonds City Council Approved Minutes December 21, 2010 Page 18