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09/15/2009 City CouncilSeptember 15, 2009 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Haakenson in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor D. J. Wilson, Council President Michael Plunkett, Councilmember Dave Orvis, Councilmember Ron Wambolt, Councilmember Strom Peterson, Councilmember ELECTED OFFICIALS ABSENT Peggy Pritchard Olson, Councilmember Steve Bernheim, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Tom Tomberg, Fire Chief Mark Correira, Assistant Fire Chief Al Compaan, Police Chief Brian McIntosh, Parks & Recreation Director Noel Miller, Public Works Director Lorenzo Hines, Interim Finance Director Debi Humann, Human Resources Director Rich Lindsay, Parks Maintenance Manager Mike Clugston, Planner Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCIL PRESIDENT WILSON, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCIL PRESIDENT WILSON, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF AUGUST 17, 2009. C. APPROVAL OF CITY COUNCIL MEETING MINUTES OF AUGUST 25, 2009. D. APPROVAL OF CITY COUNCIL MEETING MINUTES OF SEPTEMBER 1, 2009. E. APPROVAL OF CLAIM CHECKS #113749 THROUGH #113863 DATED AUGUST 27, 2009 FOR $699,307.91, AND CLAIM CHECKS #113864 THROUGH #114029 DATED SEPTEMBER 3, 2009 FOR $912,834.52, AND CLAIM CHECKS #114030 THROUGH #1.14143 DATED SEPTEMBER 10, 2009 FOR $161,686.90. APPROVAL OF PAYROLL DIRECT DEPOSIT AND CHECKS #48524 THROUGH #48592 FOR THE PAY PERIOD AUGUST 16, THROUGH AUGUST 31, 2009 FOR $737,902.56. Edmonds City Council Approved Minutes September 15, 2009 Page 1 F. ACKNOWLEDGE RECEIPT OF A CLAIM FOR DAMAGES FROM JUDY HOWELL (AMOUNT UNDETERMINED). G. AUTHORIZATION TO CALL FOR BIDS FOR TREATMENT PLANT CHEMICALS. H. AUTHORIZATION FOR THE MAYOR TO SIGN AN ADDENDUM TO THE AGREEMENT WITH FOSTER PEPPER FOR WORK RELATED TO LAKE BALLINGER. I. RESOLUTION NO. 1205 — SETTING A PUBLIC HEARING REGARDING THE ADOPTION OF THE 2009 PARKS PLAN ON OCTOBER 20, 2009 AND DIRECTING STAFF TO PUBLISH NOTICE WHICH ALERTS THE PUBLIC TO THE KEY PUBLIC POLICY ISSUES AND CHANGES CONTAINED IN THE PLAN FROM THE 2001 PARKS PLAN. J. ORDINANCE NO. 3752 — APPROVING A CHANGE IN ZONING FOR CERTAIN REAL PROPERTY LOCATED AT 7631 212TH STREET SW FROM RESIDENTIAL MULTIFAMILY (RM -2.4) TO NEIGHBORHOOD BUSINESS (BN). K. PROCLAMATION IN HONOR OF NATIONAL PREPAREDNESS MONTH, SEPTEMBER 2009. 3. PRESENTATION ON THE FIRE DISTRICT 1 CONTRACT OFFER. Mayor Haakenson explained approximately three weeks ago, the Fire District 1 (FDI) contract offer and documents related to the contract were provided to the Council as well as posted on the City's website. Since then the Council has been provided updated documents with minor legal changes; no significant changes have been made. He commented since the Council authorized staff to begin negotiations with FD 1, staff has made a tremendous effort to develop a proposal they were comfortable with. He advised Fire and Finance staff were present to answer questions and were open to any suggestions from the Council. Mayor Haakenson noted that after providing the Council the contract offer information, he had asked for additional questions on at least three occasions and Chief Tomberg prepared a "Frequently Asked Questions" white paper in response. As elected officials, Mayor Haakenson explained it was the Council's and his responsibility to look at how services are provided to the taxpayers of Edmonds. It is also their responsibility to provide those services in a cost - efficient manner while still maintaining the quality of that service. Mayor Haakenson described what the City could expect from a contract for service with FDl: nothing less than the service levels the City had come to expect from the existing Fire Department, the same response times, and highly trained firefighters serving residents from the three existing fire stations in the City. Mayor Haakenson described FD1, a respected fire department that operates on the same model as the City's Fire Department, with better training facilities, that does more community outreach through education and programs than Edmonds does, and that operates under a fire district model with an elected Board of Commissioners who set policy. The contract is written to ensure Edmonds residents will always have quality fire and medical service. The City's expectations for service levels are laid out in the contract. If those levels are not met, the City has the option to modify or withdraw from the agreement. If the City chose to do that, the contract addresses how that would occur. Mayor Haakenson commented on the cost of public safety, pointing out costs will continue to rise and labor cost is the driving force. He described the cost to operate the Edmonds Fire Department: Edmonds City Council Approved Minutes September 15, 2009 Page 2 • $8.0 million - 2010 budget for the Edmonds Fire Department • $1.1 million - Additional associated costs • $500,000 - Overhead costs • $9.6 million - Total cost to operate the Edmonds Fire Department He described Fire Department revenue: • $3.9 million - EMS levy • $750,000 - Esperance contract • $370,000 - Woodway contract • $700,000 - EMS ambulance fees • $270,000 - Voted taxes for the Public Safety Building • $6 million - Total revenue He summarized the 2010 expense to operate the Fire Department is $9.6 million; revenue taken in by the Fire Department totals $6 million, leaving a General Fund subsidy of $3.6 million. He reviewed the cost from a contract for service: • $6.2 million - FD I's offer for a contract for 2010 • $800,000 - Recurring non - departmental fire costs that the City incurs whether or not it has its own Fire Department • $7.0 million - Total cost to provide fire service via a contract with FD I. Mayor Haakenson summarized the total cost of contracting ($7.0 million), less revenue from EMS levy and voted taxes for Station 17 ($4.2 million), leaves a $2.8 million General Fund subsidy. The General Fund subsidy to operate the Edmonds Fire Department is $3.6 million; the subsidy with a contract for service with FD1 is $2.8 million, a savings of $800,000 the first year and increasing to over $1 million in five years as the savings increase and the cost to provide fire service decreases. He noted the Council packet contained a schedule outlining the savings per year. To the question of whether citizens would be taxed for the new fire contract, Mayor Haakenson assured that aside from the continuing EMS levy, Edmonds citizens would not be taxed for this contract for service. He assured the contract for service was not a tax and it would not show up on Edmonds taxpayers' property -tax statement. The contract would be paid from the City's General Fund. The cost for service each year will be calculated per Exhibit C in the Council packet. There is a formula for figuring labor cost, overhead, maintenance and operations, the City's costs for a Fire Marshal and Inspector and an annual assessment for apparatus replacement. In addition to maintaining quality fire /EMS service and saving $800,000 per year, the proposed contract calls for FD I to purchase the City's fire stations, the land under the stations, and all fire equipment. To determine the value, each station was assigned a replacement value by WCIA appraisers. The land was valued by Snohomish County at 2009 valuations and the total value assigned to the three stations and land was $8.3 million. He pointed out the assessed values of the land will decrease in 2010. FD will purchase the stations and land over a four -year period with the City receiving over $2.0 million per year. The City still owes approximately $400,000 on the previous purchase of Station 20 which will be paid from the final proceeds of the sale. The City has fiber and other equipment in Station 17 that will remain onsite as well as the generator. These will be handled via an inexpensive lease such as $1 per year. Edmonds City Council Approved Minutes September 15, 2009 Page 3 With regard to Edmonds Fire Department employees, Mayor Haakenson explained the contract calls for all firefighters and management staff to leave as City employees and become FD employees. FD will assume all employee liabilities with the exception of $800,000 in sick leave and vacation accruals. The City will have 54 fewer employees and have one less labor contract to negotiate. FD will purchase 17 vehicles from the City at a value $1.4 million which was determined by Fire Trucks Plus. This is payable in a one -time, lump -sum payment. He noted the City was scheduled to replace its ladder truck in 2013 at a cost of approximately $1.3 million. Other Fire Department assets including radios, gear, cameras, phones and some onboard equipment will also be purchased by FD1 in the amount of $350,000. With regard to concern that has been expressed regarding a loss of control, Mayor Haakenson assured the only thing citizens should worry about controlling were the quality and cost of fire /EMS service. Mayor Haakenson summarized with the station and land sales, the City will receive a cash infusion of nearly $3 million in 2010 and $2 million each year through 2014. With this contract, the City's ending cash balance increases from slightly over $1.0 million to over $4 million in 2010 and over $5 million in 2011. It maintains those levels through 2013. Two forecasts are contained in the Council packet showing cash flow scenarios with and without the fire service contract. He summarized the increase in the City's ending cash balance is possible due to the large reduction in labor costs and the addition of the contract for service as well as the cash infusion from the station and equipment sales. It will solve the City's financial problems for the next four years. He emphasized this was an opportunity to put the city in great financial shape for years to come while the Economic Development Commission does its work. Mayor Haakenson explained the financial assumptions for the report were prepared by former Finance Director Kathleen Junglov who now holds a similar position with FD1. To the question of whether that represented a conflict of interest, he reviewed the following chronology: • March 2009 -Ms. Junglov applies for open position at FD1 • April 2009 - FD 1 sends unsolicited contract offer to the City • May /June 2009 - Ms. Junglov and City staff work on details of contract for service • July 2009 - FD offers job to Ms. Junglov Mayor Haakenson explained following Ms. Junglov's resignation, he brought on Lorenzo Hines as the Interim Finance Director. Mr. Hines has studied the proposal and all the assumptions used in the contract proposal. He has made some valuable recommendations, saving additional dollars. Mr. Hines agrees with the former Finance Director on the basics of the contract. Mayor Haakenson concluded the Council had the opportunity to ensure the provision of quality fire and EMS services to the citizens of Edmonds at less cost than the City currently pays and receive much needed cash to a cash - strapped City budget. He urged the Council to take advantage of this opportunity. Councilmember Plunkett commented most citizens wanted to know whether they would receive the same service; would firefighters and paramedics show up in the same expeditious manner. He asked who determined response times, how response times were measured, and how the response times would be determined and measured via this contract. Fire Chief Tom Tomberg advised Question 2 of the FAQ addressed that question. He recalled in 2006 the Council adopted Senate House Bill 1756, now codified as RCW 35.103, which required career Fire Departments to adopt response time standards. Consistent with that legislative requirement, the Council adopted 11 response time standards. That standard is interwoven throughout the contract. FD1 has a similar standard based on their current station locations Edmonds City Council Approved Minutes September 15, 2009 Page 4 and level of service. The contract requires they adhere to the same standard. The fire stations in Edmonds will continue to be staffed as they are today. Councilmember Plunkett invited Chief Tomberg to comment on the loss of control. Chief Tomberg assured that was addressed throughout the contract via a required level of service, formula for the contract based on labor, overhead, maintenance and operations and vehicle replacement. The contract also addressed how disputes would be resolved and what happened for example if a law was passed by the legislature that forced action to be taken; the contract would be reopened and the issue worked out. Councilmember Plunkett referred to other consolidations such as 911 dispatch, observing although the Edmonds City Council did not control 911 dispatch, the City had a say in the organization. He asked whether 911 dispatch was effective in southwest Snohomish County. Chief Tomberg described three regional services provided by a consortium of governments. 911 dispatch or SnoCom is governed by a Board; Mayor Haakenson and he are on that Board. SnoCom has been in operation for over 20 years, has an annual budget of approximately $4 million and is responsible for providing EMS, fire and law enforcement dispatch throughout southwest Snohomish County. Chief Tomberg explained the City also has a seat on the Board of Emergency Service Coordinating Agency (ESCA), and he is the current chair. ESCA provides pre, during and post disaster planning and response services to seven communities in south Snohomish County and three communities in north King County. A third regional organization is the Snohomish Emergency Radio System (SERS) who brought 800 MHz to every fire and law enforcement agency in Snohomish County. Mayor Haakenson is currently the Vice Chair of the Board and has served as the Chair in the past. Councilmember Plunkett asked if those service consolidations had been effective for Edmonds citizens. Chief Tomberg answered they had been extremely cost effective and very successful. The region has a fine 800 MHz system; good disaster planning, response and recovery; and very good 911 dispatch. Councilmember Plunkett asked whether Chief Tomberg would become the Fire Chief of FDl. Chief Tomberg answered Ed Widdis, the FD1 Fire Chief, recently signed a new 3 -year contract. Chief Tomberg assured he would not be the Fire Chief of Fl) 1. Councilmember Wambolt referred to the comment in Mayor Haakenson's presentation that the City still owed approximately $400,000 on the previous purchase of Station 20 and that would be paid off with the proceeds of the sale. However the financial statements show $330,000 in future debt service for Station 20. Mayor Haakenson answered he assumed the amount owing on Fire Station 20 would be paid off with the proceeds of the sale; Mr. Hines showed it remaining in the budget. That was a decision for the Council to make. The City could continue to pay the debt service once the station was sold; he recommended paying off the $400,000 with the proceeds of the sale. Councilmember Wambolt requested an analysis of selling the fire stations versus retaining them. He also questioned why Lynnwood and Mukilteo did not accept FDI's contract for service offer. Mayor Haakenson answered he was unaware whether the contract for service that FD1 offered to Edmonds was the same as was offered to Lynnwood and Mukilteo. In Mukilteo, the Mayor refused to look at the offer and did not provide it to the Council due to issues with FD 1 over annexation. In Lynnwood, the Mayor made a similar assessment. Both Lynnwood and Mukilteo are in disagreement with FD over annexation issues. He believed if Edmonds entered into a contract for service with FD1, Mukilteo eventually would follow suit, but he did not believe Lynnwood would. Council President Wilson asked how FD1's response times compared to Edmonds. Chief Tomberg agreed they differed due to the location of their stations and the shape of the district. He suggested that Edmonds City Council Approved Minutes September 15, 2009 Page 5 question be posed to the FD 1 Commissioners. He assured every Fire Department in south Snohomish County made every effort to get to the scene of an emergency as soon as possible. He assumed FDI's standards were adopted in good faith based on common sense. FD1 has relocated stations in the past in order to reach the greatest number of people in the least amount of time. He advised response times would not be affected by the contract as long as the stations in Edmonds remained in their current locations. Assuming Edmonds response standards were higher and FD decided to close /realign/build a new station, Council President Wilson asked the impact of that action if Edmonds were to take its Fire Department back. Chief Tomberg assured under the contract, none of the Edmonds fire station locations would change. FD1 is building a new fire station at 156th that would be taken over by Lynnwood if annexation was successful. FD1 is also building a new fire station that they will own in Brier. Council. President Wilson observed response times would certainly not get worse and with luck, they would get better in the future. Chief Tomberg commented with luck in the future there would be one single fire department in southwest Snohomish County via merger, consolidation or Regional Fire Authority (RFA). Council President Wilson asked whether the cities were moving toward an RFA. Mayor Haakenson responded for cities Edmonds' size to survive, consolidation of Fire Departments, Police Departments, Public Works Departments, etc. would be necessary and possibly someday consolidation of cities to improve competition with other cities for national dollars. He was hopeful consolidation of more services would occur in the future. Council President Wilson agreed with Councilmember Wambolt's request for an analysis of selling versus not selling fire stations. Mayor Haakenson answered without the sale of the fire stations, land and equipment, the City lost one of the benefits of a contract for service - incoming cash. Although there would still be the $800,000 per year savings in the General Fund, without a cash influx from the sale of the fire stations, land and equipment, there would need to be a levy request to the voters. He pointed out if the City retained the fire stations and land, they would also retain the responsibility for maintaining the stations and grounds, insurance, etc. He summarized one of the biggest reasons for selling the fire stations and land was to bring in cash and avoid a levy. With regard to a citizens' question why Mountlake Terrace retained the transport fees (currently approximately $700,000 /year) and in Edmonds' contract those fees go to FD1, Mayor Haakenson explained the transport fees run with the stations. Mountlake Terrace did not sell their stations and therefore retained the fees. With the sale of the stations and land, FD1 would collect the transport fees. He acknowledged Edmonds could retain its stations and land; the City would retain the $700,000 /year in transport fees but would not receive the $8 million cash infusion and would drop into deficit in 2013 versus 2015. He advised ending cash balance would go into deficit in 2011 without a contract for fire service. The City goes into deficit in 2013 if the City contracts for service with FD 1 and retains the stations, land and transport fee revenue. If the proposed contract for service with FD1 is accepted, the City does not go into deficit until 2015. Chief Tomberg suggested the question regarding selling /retaining stations be posed when the Council meets with the Brier's Mayor and Mountlake Terrace's Mayor and City Manager. When /if a RFA is formed, Council President Wilson asked whether the assets of the fire departments would migrate without compensation to the RFA. Chief Tomberg responded the legislation passed in 2004 that allowed RFA's is still maturing and is being modified every legislative session. There are many rules regarding implementation that have yet to be written. There are also challenges to the rules that produce case law that dictates how a RFA is formed /operated. It was his understanding that upon formation of a RFA, cities did not receive compensation for their stations. Edmonds City Council Approved Minutes September 15, 2009 Page 6 Council President Wilson commented the only red flag in the contract for him was in regard to the formation of a RFA. According to the proposed contract, if the City sold its assets today and a RFA were formed in the future, the contract would be unwound, requiring Edmonds to buy back the stations and give them to the RFA. Mayor Haakenson responded if the Interlocal Agreement were terminated and Edmonds re- formed its Fire Department, the same process under which they were sold would be followed. It was his understanding if a RFA were formed, it would be to Edmonds' benefit to have entered into a contract for service with FD l . Council President Wilson referred to language in Section 1.1.5 of the contract, "in the event that a Regional Fire Protection Authority, RFA or other legally recognized means of providing fire service is created, inclusive of the City and District, this agreement will be terminated." Section 11.7 states, "regardless of the reason for termination, the parties and District agree that like assets purchased by and transferred to the District as part of this Agreement shall be returned to the City." Chief Tomberg answered the intent was that Edmonds would be part of the RFA. He agreed the language may need to be clarified to reflect the intent. Council President Wilson commented another policy issue was the use of funds from the sale of assets. In his experience it was not best policy to sell assets and use the proceeds to fund operations. Mr. Hines answered it depended on the need for the proceeds and the flexibility to put the proceeds aside or use them for operations. As a general policy, the proceeds from the sale of assets were not used for operations but it depended on how dire the situation was. Council President Wilson commented the $800,000 operational savings was significant enough. He requested staff consider how to protect the funds from the sale of assets. Mayor Haakenson commented it was up to the Council to determine whether to place the money in a certain fund such as the emergency fund, set it aside to pay the fire contract, etc. Council President Wilson asked staff to explore mechanisms such as establishing a separate trust fund for the proceeds that would be used for future asset purchases or retain the proceeds for up to five years in the event the stations and land had to be purchased. Councilmember Peterson asked Chief Tomberg to comment on FD I's training facilities and the lack of an Edmonds training facility has on the City's fire insurance rating. Chief Tomberg answered Edmonds was in need of a Fire Department Headquarters and a training facility. Both a headquarters and training facility are provided via the contract for service with FDL FDI is currently constructing a 4 -story tower with a 2'/2 story residential building and smoke room, adjacent to their 40,000 square foot headquarters on a 2.5 acre site off 128`h. To duplicate those structures in Edmonds would cost millions of dollars. With regard to fire insurance ratings, Chief Tomberg explained in the past the Washington Surveying and Rating Bureau evaluated cities' fire defenses and provided a rating that was then used by insurance companies. A higher rating of the Fire Department resulted in a better insurance rate for residential and commercial property owners. Recent research revealed a higher rating no longer resulted in a better insurance rate. He pointed out one of Edmonds Fire Department's deficiencies when they were rated in 1990 was the lack of a training facility; the availability of FD1's training facility would improve the City's rating which although it would not result in lower insurance rates, was beneficial to the residents. Council President Wilson advised City Attorney Scott Snyder would report to the Council next week on his experience with regionalization as a City Attorney for other municipalities including reverse annexations and other ways regionalization could be accomplished. On October 6 Brier's Mayor and Mountlake Terrace's Mayor and City Manager will meet with the Council. On October 1.3 there will be a joint City Council /Fire District 1 Commission meeting which may be held in the Brackett Room. Public Edmonds City Council Approved Minutes September 15, 2009 Page 7 comment will be accepted at all meetings. He anticipated the Council may be prepared to take a vote on October 20 or 27 assuming no major issues arise. (Councilmember Plunkett left the meeting at 8:00 p.m.) 4. PRESENTATION ON TOURISM PROMOTION AREA BY SNOHOMISH COUNTY LODGING ASSOCIATION. Shawn Walker, President, Snohomish County Lodging Association, explained a Tourism Promotion Area (TPA) is a self - imposed assessment by the lodging industry to generate funds to increase tourism and convention business, attract and welcome tourists and operate tourism designation marketing organizations. Senate Bill 6026 passed in 2003 provided this tool_ TPAs have been successfully established in Spokane, Tri Cities, Clark County, Liberty Lake, Yakima, and Wenatchee, and Tacoma is in the process of establishing a TPA. He reviewed the process for Establishing a TPA: 1. Support of local hotels - hotels generating 60% of the revenue must agree. These hotels in Snohomish County have approved forming the TPA. 2. County Council adopts a resolution of intention to establish a TPA, conducts a hearing, adopts an ordinance, and imposes the charge. 3. Requires interlocal agreements with affected municipalities. He reviewed the outcome of balloting of the 44 eligible properties in Snohomish County: • 55% voted in support • 5% voted no • 41% did not respond Of the 4,312 eligible rooms: • 64% were supportive • 3% were not supportive • 33% did not respond In Edmonds: • 1 of 3 (33 %) eligible properties voted to support (Best Western Edmonds Harbor Inn) • 48% eligible rooms support • No Edmonds hotels voted against the TPA but 2 did not respond to numerous attempts to contact the owners • Edmonds represents 5% of the eligible rooms and 7% of the eligible properties in Snohomish County The initiation petition induces the TPA boundary, assessment amount, Advisory Board composition, approved uses, grant application overview and method to halt assessments and dissolve the TPA. He reviewed the following details regarding the TPA: • Boundary: Snohomish County • Zone: Properties with 50 or more rooms • Rate: $1.00 per room night • Estimated annual revenue: $944,547 Mr. Walker reviewed the composition of the Snohomish County TPA Advisory Board: 9 voting members who include 1 lodging representative from each of the 5 County Council Districts and 4 lodging Edmonds City Council Approved Minutes September 15, 2009 Page 8 representatives at large and must include 1 each from Everett, Lynnwood and SCLA Executive Committee. The Board will also include 5 ex- officio members, 1 from each County Council District. The members serve 3 year terms, staggered. The Board meets annually or more frequently as needed. He provided examples of approved uses for the funds, advising all uses must relate to tourism development and generate overnight stays in commercial lodging in Snohomish County. He reviewed the grant application process which is patterned after the existing Lodging Tax Advisory Committee application. He also described how the TPA could be dissolved or modified. He reviewed next steps for forming the TPA: • Signatures of approval have been gathered - complete • Petition to initiate TPA has been authored - complete • County Council Resolution to adopt a TPA is estimated for 3rd quarter 2009 • Public hearing is estimated for late 2009 • Interlocal agreements are estimated fourth quarter 2009 • Begin collecting fee first quarter 2010 Councilmember Orvis asked if the money raised in Edmonds from the 3 hotels would be returned for use in the City. Mr. Walker answered although Edmonds hotels contributed only 5% of the total revenue they had the opportunity to obtain as much of the funds as there were events that attracted overnight stays. He commented in poor economic times, more marketing was necessary to increase occupancy levels. Councilmember Orvis asked who would submit requests for the funds. Mr. Walker anticipated it would be the same organizations that currently request Lodging Tax Advisory funds. 5. AUDIENCE COMMENTS Ray Martin, Edmonds, expressed reservations about the contract for service with Fire District 1, fearing it was too good to be true. He pointed out the City had been giving away at least $500,000 /year in subsidies to Fire District 1 and Woodway for the past 5 -10 years and suggested obtaining a full accounting. He commented the contract for service with Fire District 1 would be good for the firefighters and for the City's coffers, but would not be good for the Edmonds taxpayers. He was concerned a final vote was being anticipated when there had not yet been a public discussion of the issue. He pointed out Mayor Haakenson and Council President Wilson had also proposed closing Yost Pool permanently and cut funds to the Senior Center. He urged the Council to give this matter a great deal of serious thought before rushing to approve a contract for fire service with Fire District 1. Diane Buckshnis, Edmonds, expressed appreciation to the Interim Finance Director Lorenzo Hines. She referred to the Finance Committee's consideration of the biennium budget amendments, pointing out the beginning cash for the 2009 General Fund which included the Emergency Reserve Fund did not match the ending cash balance for 2008; there is a difference of approximately $2.2 million. She stated Mr. Hines agreed to work on reconciling those numbers. Next, she pointed out a reduction of $1.21,000 from the Parks Trust Fund ($85,000 from Yost and $36,500 from the Flower Program) into the General Fund. Ordinance 3466 states City Council approval is required prior to any fund reductions, yet there has not been any City Council discussion regarding the fund reduction. She audited the Parks Trust Fund and found the funds had never been removed. She advised the income from Yost Pool in June reflected a 50% higher income than budget or approximately $117,400. She was concerned Ordinance 3466 was not being administered properly. Edmonds City Council Approved Minutes September 15, 2009 Page 9 Al Rutledge, Edmonds, reported the Fire District 1 meeting scheduled for tonight was rescheduled to September 17 due to a lack of a quorum. One of the items on the agenda is the Edmonds contract proposal. Next, he advised the change to allow residents to have 3 animals versus 5 animals was adopted in January 2001. Roger Hertrich, Edmonds, questioned how the City could get more for less via the Fire District 1 contract. Next, he referred to the application submitted by Al Dykes for a contract rezone for the former Safeway /Antique Mall property for development of a "sky castle," 60 -80 foot towers. He advised the public could now comment on the SEPA process and there would also be an opportunity for comment at the public hearing at the Planning Board after the SEPA process was complete. The final decision will be made by the City Council. He commented on campaign literature on Council websites that was later removed. He urged candidates to file timely financial reports with the Public Disclosure Commission (PDC) regarding campaign donations. George Murray, Edmonds, commented an $8 million return for giving up $700,000 in revenue was an 8.7% return. However, he noted it may be worthwhile to continue that revenue stream. He agreed the contract for service with Fire District 1 may be "too good to be true," explaining his skepticism was due to a May 2008 meeting where the issue of regionalizing the Fire Department was tabled because the taxpayers paid for fire service via property taxes. He also questioned how Fire District 1 could operate their Fire Department cheaper than Edmonds Fire Department. With regard to training, he commented the City's firefighters were well trained. Next, he pointed out Al Dykes submitted an application to rezone the waterfront area two days after the Council's action to change Chapter 20. Notice of development application was published on August 28, providing an opportunity for public comment of 14 -30 days. Although the notice was published in the Everett Herald, it was not posted on the property until today. He suggested the period for comment on the project be reopened. Jack Jacobsen, Edmonds, suggested Councilmembers walk on the south side of Main Street where blacktop patches were being installed to keep people from falling and suing the City. He urged the Council to have the large trees removed and replaced with trees that would not damage the sidewalk. With regard to the comments concerning the Council websites, Mayor Haakenson advised Mr. Martin had filed a complaint with the PDC. The City Attorney advised the Council was not to engage in any dialogue over that issue. With regard to comments that the contract for service with FD was too good to be true, Mayor Haakenson advised the Mayor and City Manager of Mountlake Terrace and the Mayor of Brier will meet with the Council on October 6. Mountlake Terrace and Brier have had a contract for service with FD for approximately eight years. Next, he pointed out a Regional. Fire Authority and a contract for service were completely different; the RFA meetings were tabled due to Mukilteo and Lynnwood's disagreement with FDI over annexation. Discussions were delayed until those issues are resolved. He commented Lynnwood and Mukilteo were reconsidering the annexations due to the economic climate. Mayor Haakenson clarified he never said the Edmonds firefighters did not have any training; he has said that the firefighters do not have a training facility. 6. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF SEPTEMBER 8 2009. Community Services /Development Services Committee Councilmember Orvis reported staff provided the Committee an update to the City's subdivision regulations as part of the code rewrite. No action was required. Staff also presented a draft ordinance to amend provisions of Title 18 to correct references to Chapter 20. The proposed code revisions will be Edmonds City Council Approved Minutes September 15, 2009 Page 10 presented to the full Council for discussion, noting a split vote of Committee Members Councilmember Olson and Councilmember Orvis. Finance Committee Councilmember Wambolt reported staff briefed the Committee on surplus of computers and monitors which was forwarded to the Council as a Consent Agenda item. Next, Mr. Hines reviewed the revenue and expenditure trends of the General Fund for July and August 2009. Expenses are on budget and revenues are below forecast but in line with year -to -date projections. REST revenues improved slightly, August 2009 was the same as August 2008. Mr. Hines also provided the Committee an overview of the proposed budget amendment which was forwarded to the full Council for discussion on the September 22 agenda. 7. MAYOR'S COMMENTS Mayor Haakenson recalled he emailed the Council two weeks ago requesting they look at the six trees between 5th & Dayton and 4th & Dayton. The City's A.rborist determined the trees were damaged and needed to be removed. One of the trees is bolted together to keep it from splitting, another has a large rotten section and a portion of that tree broke off during last winter's storm. An independent arborist also prepared a report which he emailed to the Council yesterday. He had intended to add this as an agenda item tonight but neglected to do so. He relayed Public Works Director Noel Miller's determination that next week was the last possible date to take action and not disrupt the Dayton overlay project. It was the consensus of the Council to schedule it on next week's agenda. Mayor Haakenson referred to a memo from Parks & Recreation Director Brian McIntosh regarding the final revenue /expenditures for the 2009 Yost Pool season. The loss of $17,000 will be covered by a portion of the approximately $50,000 raised by the citizen group, leaving approximately $34,000 in that fund. He advised reducing the pool's hours and staff saved $29,000 over 2008 and revenues were approximately $24,000 higher than 2008. Staff's recommendation is to operate Yost Pool in 2010 with the same hours and schedules, staff will again review the fees. Lynnwood's pool will be closed in 2010 which may increase attendance at Yost Pool. Staff does not plan to do a RFP /RFQ for a pool operator next year; the City will continue to operate the pool and use the funds raised by the citizen group to cover any subsidy. The Council also has several options to consider with regard to an aquatics facility. 8. COUNCIL COMMENTS Council President Wilson recalled there had been consideration of a September 29 meeting for a joint meeting with the Fire District I Commission that has now been scheduled for the October 13 meeting. Although there were several items on the September 22 and October 6 agendas, he recommended not holding a meeting on September 29, the fifth Tuesday. Following a brief discussion, it was the consensus of the Council to schedule a meeting on September 29 and move items from the September 22 and October 6 agendas to the September 29 agenda. Council President Wilson referred to the update to the legal contract with Foster Pepper for work related to Lake Ballinger not to exceed 10 hours or $3600 that was approved on the Consent Agenda. Although there was $20,000 included in the budget for Lake Ballinger, funds in the Council budget for professional services as well as funds in the Council Contingency Fund, he recommended the legal fees come from Council Contingency. This would retain the funds in the professional services budget for consultants, legal services, etc. and retain the $20,000 for future Lake Ballinger expenditures. With regard to the comments that the FD I contract for service was too good to be true, Council President Wilson commented that same sentiment was expressed by some members of the Firefighters Union; they Edmonds City Council Approved Minutes September 15, 2009 Page 11 have since worked through their concerns and skepticism. He acknowledged that he also had a high degree of skepticism that he was working through. The process over the next two months will provide ample opportunity to examine the issue particularly with the addition of meetings on September 29 and October 13. If the Council was not ready to vote by October 27, the process would be extended as long as necessary to ensure all questions were answered. Council President Wilson expressed his appreciation to Mr. Martin for his watchdog role with regard to Yost Pool and the Senior Center, pointing out he supported including an additional $100,000 for the Senior Center in the levy. With regard to the Councilmembers' websites, he assured the City's policy has always mirrored the State's policy and it was appropriate for the PDC to address any questions. Councilmember Peterson reported the Edmonds Classic Car Show, the Edmonds Bird Fest and the 3 -Day Walk were great events. He thanked everyone who volunteered at those events. Councilmember Wambolt reported when he was collecting his campaign signs, he noticed many of his as well as other candidates' signs had been vandalized. He pointed out the signs cost approximately $5 each plus the labor to put them up and it was highly illegal to vandalize campaign signs. He estimated 99% of the signs were in authorized locations; if they were displayed on private property, it was because the candidates had obtained permission. He urged citizens to call 911 if they observed anyone vandalizing candidates' signs; the penalties are severe and can include jail time. UNNEW"I DA "111 With no further business, the Council meeting was adjourned at 8:50 p.m. Edmonds City Council Approved Minutes September 15, 2009 Page 12