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11/25/2008 City CouncilNovember 25, 2008 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 Michael Plunkett, Council President Steve Bernheim, Councilmember D. J. Wilson, Councilmember Deanna Dawson, Councilmember Dave Orvis, Councilmember Ron Wambolt, Councilmember ELECTED OFFICIALS ABSENT Peggy Pritchard Olson, Councilmember ALSO PRESENT Leif Warren, Student Representative STAFF PRESENT Tom Tomberg, Fire Chief Mark Correira, Assistant Fire Chief Gerry Gannon, Assistant Police Chief Jim Lawless, Assistant Police Chief Duane Bowman, Development Services Director Brian McIntosh, Parks & Recreation Director Noel Miller, Public Works Director Kathleen Junglov, Finance Director Debi Humann, Human Resources Director Rob Chave, Planning Manager Doug Fair, Municipal Court Judge Rich Lindsay, Park Maintenance Manager Rob English, City Engineer MaryAnn Hardie, Human Resources Assistant Ann Bullis, Building Official Frances Chapin, Cultural Services Manager Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder pprove 1. APPROVAL OF AGENDA Agenda COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER BERNHEIM, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER WILSON, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: Roll Call A. ROLL CALL Approve 11 -18 -08 B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 18, 2008. Minutes C. APPROVAL OF CLAIM CHECKS #108172 THROUGH #108379 FOR NOVEMBER 20, Approve 2008 IN THE AMOUNT OF $783,137.66. APPROVAL OF PAYROLL DIRECT Claim DEPOSITS AND CHECKS #47453 THROUGH #47494 FOR THE PERIOD NOVEMBER 1 Checks THROUGH NOVEMBER 15, 2008 IN THE AMOUNT OF $817,200.22, AND APPROVAL OF HOLIDAY BUY BACK CHECKS #47495 THROUGH #47595 IN THE AMOUNT OF $236,861.82. Edmonds City Council Approved Minutes November 25, 2008 Page 1 Claim for Damages D. ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM LARRY AND Liquor ROBERTA WENNIK (AMOUNT UNDETERMINED). Licenses E. LIST OF EDMONDS BUSINESSES APPLYING FOR THE RENEWAL OF THEIR FMS WASHINGTON STATE LIQUOR LICENSES, NOVEMBER 2008. Transport Fee Billing Services F. EMS TRANSPORT FEE BILLING SERVICES, Council Member Councilmember Dawson Announcement Dawson Councilmember Dawson read a statement expressing her honor and pleasure of serving as a Resignation Councilmember for the past seven years, and describing the challenges the City has faced during that time. She announced her resignation from the Council effective December 31, 2008 to accept a position in Washington, D.C. as the Director of Federal Courts Program for Justice at Stake, a nonprofit organization devoted to keeping America's courts fair, impartial and independent. Justice at Stake provides a national forum for strategic planning, policy research and analysis, media outreach, grassroots education, coalition building and reform. She expressed her thanks to her family, friends, and supportive husband. She further expressed her appreciation of the Council, staff, and the citizens of Edmonds who honored her by allowing her to serve for seven years as their City Councilmember. Councilmember Wilson expressed his appreciation for Councilmember Dawson's comments, remarking she would be missed. He recalled when she was elected in 2001 during the days of Brightwater, estimating she was the brightest of any Councilmember who had served. He recognized Councilmember Dawson's commitment to the citizens and to the City and her sincere interest in public service. Council President Plunkett announced a reception would be held in honor of Councilmember Dawson prior to a future Council meeting. Adopt -a- 3. ADOPT -A -DOG Dog Council President Plunkett remarked there were more strays recently due to the economy. Charles Greenberg agreed the downturn in the economy had resulted in a more dire situation for many pets. He thanked the Council for endorsing the Adopt -a -Dog program, noting some other communities were not as receptive to the program. He introduced Sammy, a 9 -10 year old Shepherd/Golden Retriever mix. He described Sammy as laidback, extremely friendly, well behaved, playful, good with other pets, walks well on a leash, very adaptable and loves car rides. 4. AUDIENCE COMMENTS Park Levels Lora Petso, Edmonds, thanked Councilmember Dawson for her service. She offered to email of Service; Councilmembers her slide presentation regarding the reduction in park levels of service. She recalled in 2008 Parks the 2001 park plan the goal was 0.95 acres of neighborhood parks per 1,000 population; the goal in the Plan proposed 2008 plan has been reduced to 0.71 acres per 1,000 population and similar reductions were made for community parks, open space and special use areas. The revisions made to the 2008 Parks Plan did not alter those reductions; adopting the 2008 Parks Plan would reduce park level of service standards for the City. She referred to the minutes of the August 18 special Council meeting where the Council stated they did not want to scale back their vision for parks and requested staff provide a comparison of where the plan was scaled back from the prior plan. She questioned whether that had been accomplished and requested a copy. She also requested the following: the previously referenced level of service standards be restored to 2001 language, restore the pool language, restore language regarding ILA for park use at Sherwood Park, restore the description of neighborhood parks as 5 acres each rather than 2 Edmonds City Council Approved Minutes November 25, 2008 Page 2 acres, restore the service area for community parks at 1 -2 miles rather than 2 -5 miles, use REET revenue for park acquisitions, and plan park acquisitions in order to obtain State grant funds. She objected to the proposed Plan which reflected service reductions and no planned park acquisitions. She summarized closing Yost Pool was never the answer to the budget problem as it generated over $129,000 /year in fees. If that was not enough, she recommended raising the fees rather than closing the pool. Coneem re: George Everett, Edmonds, recalled on November 10, 2001 George W. Bush urged the public to speak Events of the truth about terror and not tolerate outrageous conspiracy theories concerning the attacks of September 9/11 11. Mr. Everett noted by that time the Bush administration and the media had already created and propagated the most outrageous conspiracy theory of all; that Osama Bin Laden, Al Qaeda and 19 Arabs planned and carried out the attacks of 9/11. And to solve that erroneous problem, war was declared on terrorism, Afghanistan was attacked, Iraq was invaded, the Patriot Act passed, airport security tightened, and the Department of Homeland Security was created. He invited the public to learn more via a program aired on channel 77 on Thursdays at 11:00 a.m. and Fridays at 10:00 a.m. He also encouraged the public to visit AE911truth.org and firefightersfor9l ltruth.org and sign their petition calling for an investigation. Quotes from various leaders were available on patriotsquestion9l Lcom. Yost root ii Tom Schutte, Edmonds, commented Yost Pool provided a variety of aquatic programs for all ages. He identified five members of the Wolf Pack, a masters group that swim at Yost Pool. He commented on the importance of an outdoor aquatic facility where young people can learn to swim and urged the Council to retain Yost Pool as a permanent fixture in Edmonds, an area surrounded by water where aquatic safety skills, lessons and other programs for youth were life skills. Yost hoof Rowena Miller, Edmonds, remarked Washington DC was lucky to get Councilmember Dawson. She urged Council to keep Yost Pool open, commenting it provided recreation, physical and mental health for citizens of all ages and gave Edmonds citizens a unique opportunity to swim outdoors in a natural setting unpolluted by traffic. In difficult economic times, nearby, easily accessible, relatively inexpensive recreation was especially important. To the comment that Yost Pool did not pay for itself, she noted a city's business was to provide services. Services such as parks, recreation, libraries, art events, gardens, flowers, museums, etc. seldom paid for themselves but created a quality community. Observing that voters were doing their part by paying higher property taxes, higher vehicle license fees, and higher water and sewer utility taxes, she asked Council to do their part by identifying creative cost savings. She suggested using funds in Fund 125 for pool repairs to keep Yost Pool open. She invited audience members attending tonight's meeting in support of Yost Pool to stand. She concluded Yost Pool was a valuable City asset, a jewel and treasure of the community and urged the Council to keep it open. ostPool Jeff Draper, Edmonds, spoke in support of Yost Pool and provided four reasons for keeping the pool open, 1) the swim team is always full, 2) swim classes are always full, 3) it creates entry -level jobs and training for young people in the community, and 4) it is an amenity that increases property values thereby increasing City revenue. Yost roof Jan Kavadas, Edmonds, a competitive swimmer who swims at Yost Pool in the summer and elsewhere the remainder of the year, expressed concern that limited maintenance by closing Yost Pool for 1 -2 years would lead to its early demise. She swam at Yost Pool during the summer due to the availability of a 3- hour lap swim on Saturday and Sunday mornings, because it is 80% closer to her home than the pool where she swims the rest of the year, and because it is possible to take the bus from her home to the pool. She recommended keeping Yost Pool open as long as possible, noting there has been support expressed for replacing the pool. Yost Pool Julie Perrine, Edmonds, commented her family used Yost Pool and Yost Park a great deal and enjoyed seeing the children from day camps at Frances Anderson Center swim at Yost Pool. She referred to Edmonds City Council Approved Minutes November 25, 2008 Page 3 options for budget cuts that included eliminating the Crime Prevention and DARE programs, commenting eliminating programs made providing a safe, family- friendly, wholesome place like the pool even more important. She urged the Council to never close Yost Pool. She also recognized the importance of the Discovery Program in teaching children to be good stewards of the land. Betty Larman, Edmonds, speaking on behalf of several Garden Club members, noted that Edmonds Flower Floretum Garden Club member Rachel Sed efield started the flower basket program in 1960 in Program g p g conjunction with the Chamber of Commerce. In addition to the beaches, the flower baskets were one of the main attractions for visitors, and an Edmonds trademark. She was astounded the Council was considering eliminating that program to satisfy a financial shortfall and recommended the Council capitalize on this asset and consider ways to reduce City maintenance such as planting perennials in corner flowerbeds, have businesses or private citizens adopt corner gardens, and/or hold contests for the most beautiful corner. She remarked in difficult economic times, people likely will travel less and it was important to make Edmonds a destination place. Next, she expressed concern that the Council authorized $60,000 for an aquatics feasibility study rather than using those funds to maintain Yost Pool. She urged the Council to retain the flower program and encouraged community members, businesses and members of the Garden Club and Chamber of Commerce to work with the City to keep Edmonds beautiful. Yost pool Nancy Hopper, Edmonds, spoke in support of Yost Pool, pointing out this outdoor jewel was an asset to the community, unlike any pool in surrounding communities. She asked the Council to use the taxpayers' money responsibly and to keep Yost Pool open. ost cool Wendy Harrison, Edmonds, spoke in favor of keeping Yost Pool at its current location. Her family uses the pool nearly daily in the summer, her sons are on the swim team and she swims laps regularly. The pool's unique location within a neighborhood, away from traffic, created a safe place for kids to meet friends and allowed kids some independence. They recently joined the YMCA but its location on Hwy. 99 did not allow their children to reach the pool on their own. Yost root Josie Tilbury, Edmonds, a seventh grader, provided a petition signed by people who do not want Yost Pool to be closed. She explained Yost Pool was a safe place for kids to go in the summer and many adults have fond childhood memories of the pool. She summarized all the activities at the pool would be lost if the pool were closed. ost pool Alex Walker, Edmonds, recalled childhood memories of Yost Pool, ten years on the swim team, swimming with friends, and as a lifeguard for the past two summers. She commented on the Yost community; from the dedicated lap swimmers to beginning swimmers, Yost was a place for everyone. Her mom grew up swimming at Yost and has shared that with her family, the case for many Edmonds families. She urged Council to consider other options for budget cuts and to keep Yost Pool open. It is a part of Edmonds' history and a positive influence on the community that promotes a healthier lifestyle. Yost poor Dick Van Hollebeke, Edmonds, congratulated Councilmember Dawson on her decision, commenting it had been the community's great privilege to have her on the Council. He spoke in support of Yost Pool, noting as evidenced by the comments of many, the pool had great meaning for members of the community. A member of the consultant team for the aquatic study, he relayed the consultants' awe of Yost Pool and its setting. He noted many other municipalities were asking their staff via renegotiating union contracts for ten days of unpaid leave throughout the next year. He estimated this would result in an approximately $1 million savings for Edmonds. Another possible funding source was selling the fiber optics strands. He commented Yost Pool was special to him; when he turned 50, he swain 50 laps in under 50 minutes. This August, the 20th anniversary of that feat, he planned to swim 70 laps in less than 70 minutes. Edmonds City Council Approved Minutes November 25, 2008 Page 4 YostP °ol Monda Van Hollebeke, Edmonds, commented she and her husband used Yost Pool daily in the summer. She urged the Council to be creative and forward thinking, referring to the availability of federal funds for infrastructure as part of the stimulus plan. Yost Pool Jody Daniel, Edmonds, agreed with everything that had been said about Yost Pool. Yost °ol Quinn Jackson, Edmonds, commented he had been going to Yost Pool for 12 years, beginning with swim lessons when he was 2 years old, later swimming on the swim team and hanging out with friends. He urged the Council to keep the pool open so that he could swim 70 laps when he was 70 years old. Yost Pool Art Stamey, Edmonds, expressed his support for Yost Pool. Yost Poot Janice Stamey, Edmonds, expressed her support for Yost Pool. Yost Poot Scott Schafer, Edmonds, father of two sons who spend a great deal of time at Yost Pool, echoed the request of previous speakers to keep the pool open. Yost Pool Mary Carlson, Edmonds, spoke in support of keeping Yost Pool open, commenting Yost Pool was one of the amenities she highlighted for visitors. Yost P °ot Tan Aksel, Yost Pool Swim Team Boosters, relayed 200 youth participate on the swim team, competing against other teams in the area. The Edmonds - Woodway High School swim team practices at Yost Pool and local schools bring classes to the pool for field trips. She noted parents line up at 5:00 a.m. to register for swim team registration that opens at 8:00 a.m. which illustrates the need and desire for that program. ostP °ol Thom Jackson, Edmonds, a member of the Yost Penguin swim team from 1975 - 1980, commented the pool held many memories for him. After college, he returned to Edmonds and purchased a house two minutes away from Yost Pool because the pool was one of the things that made Edmonds a great place to live. He urged the Council to keep the pool open. Yost Pool ii Brett Miller, Edmonds, expressed his support for keeping Yost Pool open. He suggested consideration be given to raising the fees at Yost Pool. ost P °ol Ashlie Bissell, Edmonds, an eighth grader, commented she visits Yost Pool daily during the summer, has been on the swim team for three years, has made many good friends there, gets a lot of exercise and it's a great place to hang out with friends. She urged the Council to keep the pool open. Yost P °ot John Bissell, Edmonds, commented both Ashlie and Joseph participated in the Yost swim team since they were old enough and before that they were in swim lessons. He remarked on the beautiful setting of Yost Pool, relaying he saw an eagle in the branches overlooking the pool last summer. The pool is what distinguishes Edmonds from other communities and is the reason many people live in Edmonds. Because of the current difficult economy, he anticipated fewer Edmonds residents would be vacationing elsewhere and more would be enjoying the amenities of Edmonds. He referred to layoffs in Snohomish and King Counties and the King County's 10 day furlough, whereas Edmonds' budget included salary increases. He estimated if Edmonds instituted a 10 -day furlough for its employees, the City could save $1.5 million in 2009 which would fund both Yost Pool and the flower baskets. Joseph Bissell, Edmonds, commented he enjoyed visiting Yost Pool every summer and he would be ostP °ol disappointed if the pool were closed. He noted the pool provided exercise for kids and was a place for kids to get away by themselves. Edmonds City Council Approved Minutes November 25, 2008 Page 5 Y°st P°ot Luke Bissell, Edmonds, urged the Council to keep Yost Pool open. Isabella Rohani, Edmonds, a sixth grader, commented Yost Pool had been her life since she was two Yost Pool years old. She provided four reasons for keeping the pool open, 1) it affects the economy - home values will decrease if the pool is closed, 2) there are no other outdoor public pools and the air inside indoor pools is terrible, 3) the pool is loved by everyone in the community and closing the pool would eliminate lifeguard jobs, and 4) construction of a new pool would disturb the wildlife in the park. Taxes t a Support of g � Dave Pa Edmonds , thanked Councilmember Dawson for her service. He commented less than 20% City of the taxes paid by citizens were used to support the City. The City made the best use of taxpayers' Services money; the average federal employee earned 2.2 times as much as the average local employee. He urged citizens to support any additional tax that would be used to support City services. Y°st P ° °t Roger Hertrieh, Edmonds, expressed support for Yost Pool. He expressed appreciation for Councilmember Dawson's efforts and wished her good luck. Next, he relayed his children began swimming at Yost Pool, participated on swim teams and his daughter managed the pool, summarizing participating in activities at Yost Pool built character. He recalled when the pool was constructed citizens did not support a cover and later efforts to cover the pool also failed. He pointed out the public's outcry illustrated the importance of Yost Pool to the community; few other programs would result in such a response other than possibly eliminating the Senior Center or the flower program. He suggested the Council determine how to keep Yost Pool open. ost Pool Don Hall, Edmonds, urged the Council to keep the pool open. He encouraged the public to generate tax revenue for the City by shopping in Edmonds rather than at the malls. He highlighted the annual Locp call Christmas Tree lighting this Saturday, gift wrapping at Coldwell Banker Bain by the Edmonds - Woodway s High School DECA this Friday and Saturday in exchange for a food or cash donation to the local food bank, and the First Dibs event on Thursday, December 4 where downtown merchants will offer specials and refreshments. He urged citizens to shop locally to generate revenue for merchants and the City. Yost Pool Camille Perrine, Edmonds, commented her family looks forward to the Championship Belly Flop Contest at Yost Pool every year. Yost root Natalie, Edmonds, commented she has a lot of fun with friends at Yost Pool every year. Yost root Kate Mooney, Edmonds, wanted Yost Pool to stay open because she goes to swim lessons there every summer. Yost root Jim Hills, Edmonds, expressed support for Yost Pool. As the President of the Edmonds Chamber of Commerce, representing its 400 members, he also expressed support for the two proposed amendments Economic I that provided increased funding for economic development. He referred to a comment made by the Development Director of the State Office of Financial Management that in a State such as Washington where revenue is based on transactions, the way to prosperity was not via cuts. The Chamber of Commerce supports, organizes and funds some of the most iconic events in the City including the Taste of Edmonds, the annual car show, Halloween, and the Tree lighting ceremony. The Chamber also created the EverythingEdmonds.eom website dedicated to supporting the City, its businesses and economic development; performs the welcome to new businesses; conducts ribbon cutting ceremonies, etc. The Chamber recently reviewed its draft budget and all the above events were considered for cuts. He encouraged the Council to support the Chambers' economic development efforts. It was the consensus of the Council to reorder the agenda to discuss the budget workshop next. Edmonds City Council Approved Minutes November 25, 2008 Page 6 2009 -2010 5. WORKSHOP ON 2009 -2010 BUDGET; REVIEW AND DISCUSSION ON POTENTIAL Budget AMENDMENTS AND POTENTIAL COUNCIL DIRECTION ON A BUDGET OPTION. Council President Plunkett anticipated the Council would adopt the budget at the December 2 meeting. Tonight was continued presentation and discussion of budget amendments. He requested after the Council discussed the proposed amendments, they provide direction to staff regarding a budget option. He explained Option 2 called for over $1 million in cuts in 2009 including the Crime Prevention program, the DARE program, a planner position, an engineering tech position, park maintenance and Yost Pool. Option 3 has $486,000 in cuts but does not cut DARE, the planning position, the engineering tech position, reduce park maintenance or close Yost Pool in 2009 but moves those cuts to 2010, leaving 2009 for the Council to look for solutions, opportunities and possibilities with regard to those cuts. Mayor Haakenson recapped the budget options: Option 1 is the original budget, Option 2 is cuts proposed in 2009 and 2010 and Option 3 moves the cuts to 2010 and 2011 giving the City Council 2009 to find a longer term solution to avoid the cuts in 2010 and 2011. Councilmember Bernheim referred to Option 2, noting with the cuts proposed and the tax increases the Council already passed, there was an ending fund balance of $1.5 million from 2009 forward. Finance Director Kathleen Junglov agreed, pointing out the fund balance begins dropping in 2013 and 2014. Councilmember Bernheim noted in Option 2, without the cuts there was an ending fund balance in 2009 of $1 million and $1.3 million in 2010. Mayor Haakenson clarified that was Option 3, pushing the cuts off 2 years. He pointed out cuts needed to be made in either 2009 or 2010 unless a long term solution to the revenue problem was identified. He noted the ending fund balance of $1 million should be $3 million. He urged the Council not just to look at 2009, 2010 . and 2011 but look ahead to 2013 and 2014 so that the City was not in this same position in five years. He envisioned once the Council selected a budget option and decided what they wanted to cut and/or add, staff could identify the impact of those cuts /additions. Councilmember Bernheim commented he had been struggling to identify $10,000 in cuts such as cutting funding to the Senior Center but after reviewing the ending fund balances, he was uncertain that small cuts were valuable, particularly when Councilmembers were proposing additions to the budget. Councilmember Dawson commented a $10,000 expense that did not increase over time was different than an addition that increased such as employees who received COLAs and whose insurance costs increased. Councilmember Wambolt commented when he joined the Council, he did not understand ending cash balances, a process that allows cities to carry a balance from one year to the next which is not done in private business. He learned the Council had not done a good job with the ending balance in the past, a situation he took some responsibility for as a member of the Finance Committee. He explained the City's ending balance had dropped considerably, $3 million in 2008 and $2 million in 2007. He summarized the City's ending balances were historically low. Snohomish County's goal was to have 10 -11% of their general operating expenses as an ending balance; Edmonds was nowhere near that amount; 10 -11% would require an ending balance of $3 million. He urged the Council not to spend any of the ending balance and to increase the ending balance wherever possible. Councilmember Wilson agreed the issue was not $10,000 here or there, it was how to generate the revenue to pay for basic services to be the type of city the Council and its citizens wanted Edmonds to be. In previous years the Council has adopted budgets that were nearly 10% in deficit. For example in 2008, revenue collected was $30.5 million and total expenses were $33.3 million resulting in a deficit of $2.8 million. He concluded the City was not just now in a difficult position but had been in a difficult position due to Eyman initiatives that limited cities' ability to increase taxes. He noted the Council had already voted to increase taxes as much as they could as well as increased fees a significant amount, yet did not Edmonds City Council Approved Minutes November 25, 2008 Page 7 have enough money to pay for the basic services the City currently provides. He noted cuts of $10,000 or even $1.00,000 did not solve the real problem of ensuring revenues matched expenses. Councilmember Wilson explained this could only be resolved via a major commitment to stop providing basic services such as fire, Yost Pool and Crime Prevention or a commitment to find new revenue. He concluded the only way to generate additional revenue was for the Council to reach a consensus on a method and to sell it to the voters. Mayor Haakenson summarized the amendments suggested last week: • Add funding for the Snohomish Health District ($81,000) • Cut the City Attorney's Budget ($10,000) • Cut Senior Center funding ($10,000) • Cut Youth Services ($250,000) • Cut traffic enforcement ($25,000) • Cut city newsletter ($20,000) • Cut Olympia and Washington DC lobbying expenses ($80,000) • Cut parks maintenance ($50,000 instead of $500,000) The following amendments were suggested by Councilmember Wilson: Increase economic development advertising ($25,000) Councilmember Wilson explained this built on the Option 1 budget and would support economic development in the community and leverage dollars spent by the Chamber and other entities. He referred to the importance of advertising to attract people attending the 2010 Winter Olympics to Edmonds. Advertising was important due to Edmonds' distance from I -5 and to attract ferry riders who may not be aware of all Edmonds has to offer. He used the analogy of a person in a boat with a storm approaching; the last thing they would do was pull in their oars and wait for the storm to blow over. When a storm came, the proper thing to do was point the bow and row hard. Council President Plunkett inquired about the funding source for the additional $25,000. Councilmember Wilson suggested the ending fund balance, noting Option 1 had an ending fund balance in 2009 of $1.092 million, Option 2 had an ending fund balance of $1.8 million and Option 3 had $1.3 million. He commented there were bigger issues facing the Council than identifying $25,000 as he envisioned it would be necessary to seek voter approval of a levy increase in the near future. He pointed out the importance of determining what kind of city to be and then determine how to pay for it. Mayor Haakenson asked if funding for all the amendments Councilmember Wilson would propose would be from ending cash balance. Councilmember Wilson agreed that would be the funding source. Increase economic development professional services for Business Improvement District ($60,000) Councilmember Wilson explained a Business Improvement District (BID) was a local improvement district where a jurisdiction within the City such as the BD zone taxed themselves to fund projects via a vote of the members of the district. Election costs were estimated at $40,000 - $80,000; the proposed $60,000 was a placeholder to assist with that effort and to move the City's expenditure on economic development to the Chamber or other group in the future. Councilmember Bernheim asked who would vote in an election to form a BID. Councilmember Wilson stated over the next year the City and Chamber could consider this option and if they chose to move forward with an election, there would be funds in the budget to assist with that effort. The Chamber and Downtown Edmonds Merchants Association have expressed interest but it was unknown how a district would be formed. He envisioned the voters in such an election would be the members of the district. Edmonds City Council Approved Minutes November 25, 2008 Page 8 Councilmember Bernheim commented the cost of a citywide election was $60,000 - $80,000 and questioned why the election costs were so high for 300 -400 voters. He also asked whether the election could be combined with other issues such as a parks levy, Antique Mall redevelopment, a pool, the Regional Fire Authority, etc. Councilmember Wilson commented until the size of the district was determined, the cost of the election could not be accurately estimated. The remainder of the funds budgeted would remain in the ending balance. He acknowledged the cost could be reduced if other issues were included in the election. He noted this provided an incentive for local merchants to tax themselves for projects they wanted. Via the formation of a BID, the local merchants could determine their own tax structure and how the funds would be spent. Councilmember Wambolt agreed the City needed more revenue but questioned the advisability of increasing property taxes. He referred to the analysis staff provided regarding Edmonds' tax rate: $8/$1000 in Edmonds, $8.21/$1000 in Lynnwood, $9.55/$1000 in Everett and $7.98/$1000 in Mountlake Terrace. However, property in Edmonds had a much higher value; the average home value in Edmonds was $461,500 compared to $308,900 in Lynnwood, $290,000 in Mountlake Terrace and $286,000 in Everett. He summarized the average homeowner in Edmonds paid 59% more in property taxes than in Mountlake Terrace, 46% more than in Lynnwood, and 35% more than in Everett. Councilmember Wambolt stated it would be difficult to ask citizens to contribute more in property taxes when they were already paying that level of taxes. He recommended identifying other sources of revenue such as economic development, noting there may be areas that would need to be redeveloped, heights increased to 3 -4 floors, etc. He did not support asking homeowners to pay increased property taxes. Council President Plunkett asked if an area interested in an LID first formed the LID and then determined election costs. Ms. Junglov recalled a BID formed in Everett used a process similar to an LID where the property owners in an area agreed to an annual assessment. She recalled it was only in place for 3 -4 years. Council President Plunkett recalled signatures from property owners in the area were obtained to create the LID which also determined the election cost. Ms. Junglov explained there was not an election for the formation of the BID in Everett, only a petition process to form the LID. Council President Plunkett suggested if the businesses in the downtown core wanted to tax themselves they could do so via petition which would cost the City very little other than administrative costs. Councilmember Wilson disagreed Edmonds property owners paid 59% more in property taxes than Mountlake Terrace property owners; the property tax rate in Edmonds was lower than nearly every other city in Snohomish County. Councilmember Wambolt reiterated the rate may be lower but the median home price in Edmonds was much higher. Increase Mayor's travel budget for Washington, DC travel ($6,000) Councilmember Wilson commented all the options cut $36,000 from the federal lobbying contract. He suggested including funds in the budget to send Mayor Haakenson to Washington DC to lobby on the City's behalf particularly when members of the local delegation were responsible for the Transportation Budget and the Appropriation of the Interior Budget. Mayor Haakenson asked how much the Mayor's transportation budget was. Councilmember Wilson answered $4,100. Councilmember Wilson explained the proposed addition would fund two trips for the Mayor and one other person at $1500 each. Increase Council travel budget for Washington DC travel ($2,500) Councilmember Wilson explained this would provide funding for two Councilmembers to travel to Washington DC once a year to lobby on the City's behalf. He noted cities that did not travel to Washington DC were not considered serious and it was more difficult to obtain funding. Edmonds City Council Approved Minutes November 25, 2008 Page 9 Increase Human Resources professional services to explore self - funding health insurance 2009 ($40,000) Councilmember Wilson explained benefit plan changes were coming and the proposed amendment would fund a consultant. He commented the City had very rich healthcare benefits, most of which was not utilized by City employees. When the benefits were not utilized, the City did not reap the rewards, the insurance company did. The current AWC plan will be eliminated January 1, 2012 and the City must have another plan in place by then. The proposed amendment would fund a consultant to analyze how to replace the current benefit plan. Council President Plunkett observed Human Resources staff did not include funds in the budget to hire a consultant although they knew this was forthcoming. He asked whether funding for a consultant was necessary and if so, why staff did not included it in the budget. Human Resources Manager Debi Humann explained the plan was to form a labor management organization with employees to find out their health insurance needs and what they wanted. She clarified both the AWC plans were being eliminated. She noted an option was to wait and see what AWC proposed; it was her understanding all the new plans would have preventative healthcare, a feature many employees wanted. Another option . was to research the marketplace. She agreed she would not have time to do that work and assumed the City would hire a broker. She concluded the $100,000 cost seemed very high. Council President Plunkett asked if Human Resources had a plan of action. Ms. Humann answered staff first plans to wait to see what AWC proposes. She has been attending regional HR Director meetings where this issue has been discussed. Another option may be to form a consortium of cities. She viewed any action now as premature because it was unknown what AWC would offer to replace the two existing plans. Council President Plunkett summarized Human Resources staff was developing a strategy and would bring it to the Council in the future regarding how to address this issue. Council President Plunkett asked whether Ms. Humann's strategy was separate from this amendment. Ms. Humann answered she had not been consulted regarding this amendment. Councilmember Wilson recalled former Administrative Services Director Dan Clements, Ms. Humann . and he met earlier this year and it was clearly based on their comments that the City lacked the expertise for this effort and that there was inadequate staffing in the HR Department for this effort. He relayed it made sense for companies over 50 employees to self insure and all large companies such as Boeing self insured. Via self insurance, companies were able to provide the same benefits and achieve savings of up to 50 %. Therefore it was appropriate for the City, with its 250+ employees, to consider self insurance. He commented he did not consult Ms. Humann, assuming she wanted help with this process. Mayor Haakenson pointed out his original budget included 0.5 FTE in Human Resources to work on projects such as this, half the $100,000 cost of a consultant. He noted an alternative would be to fund the 0.5 FTE in the Human Resources Department. Councilmember Wilson responded based on Mr. Clements' and Ms. Humann's comments, he did not believe Human Resources staff had the skill set for this effort. Mayor Haakenson concluded if staff wanted $100,000 for this, it would have been requested in the budget. Increase Human Resources professional services to explore self- funding health insurance 2010 ($60,000) See above. Fully fund Crime Prevention Councilmember Wilson commented this amendment assumed the Council chose Option 2 or 3. He did not want to decrease crime prevention as crime often increased in times of economic difficulty. Edmonds City Council Approved Minutes November 25, 2008 Page 10 Council President Plunkett asked whether Option 1 was predicated on the successful formation of a Regional Fire Authority (RFA). Mayor Haakenson answered Option 1 did not include any cuts and was based on a vote of the people two years in the future for an additional revenue source which could be a RFA, a parks levy, or property tax levy lid lift. Councilmember Dawson commented Options 1 and 3 were identical because Option 1 had no cuts in the first year and anticipated a revenue source in the second year. Option 3 made no cuts in 2009 with the Council working toward revenue sources but identifies cuts that would be made if a revenue source was not approved. If the Council wanted to pursue Option 1, it would be preferable to do a one year budget. Councilmember Wambolt commented a RFA would have no effect in 2009 or 2010; if approved it would not have an effect until 2011. Councilmember Dawson pointed out without a tax option in the next 1 -3 years, cuts needed to be made now because it would be impossible to make deep enough cuts if no cuts were made for 3 years. She summarized it was necessary to either make cuts now or anticipate a new revenue stream, whether that was a RFA, parks levy, general levy, remarkable economic development, etc. Fully fund aquatics If the Council pursued Options 2 or 3, Councilmember Wilson planned to propose this amendment to ensure Yost Pool remained open. Fully fund Discovery Program Councilmember Wilson pointed out this was not an issue if the Council pursued Option 1. He pointed out programs such as Discover the Forest, Puget Sound BirdFest, public beach cleanups, Beach Ranger, and Watershed Fun Fair that draw people into Edmonds cost approximately $56,000. Full,, fund maintenance pro . rgrams Councilmember Wilson noted this was not an issue if the Council pursued budget Option 1. If the Council pursued Option 2, in which this cut was proposed in 2010 or Option 3 which assumes this cut in 2011, he would propose this amendment in order to keep the City's 31 neighborhood parks. Councilmember Wilson agreed Option 1 and 3 were very similar; Option 1 assumed no cuts and a new revenue source and Option 3 assumed identified cuts that would be necessary absent an additional revenue source. The following amendment was suggested by Council President Plunkett: Reduce Council travel budget due to retreat being held in Edmonds ($1,600) Council President Plunkett explained this amendment would reduce the Council travel budget from $4,100 to $2,500. Sufficient funds would remain in the Council travel budget for travel to the AWC meetings and workshops, Snohomish County cities meetings, etc. Mayor Haakenson declared a brief recess. Council President Plunkett briefly reviewed the Council's schedule for adoption of the budget, anticipating the budget would be adopted December 2. He noted this was an unprecedented economic situation, and the Council has never adopted a budget in a time of so much economic uncertainty. For that reason, Mayor Haakenson created three budget options. He noted some amendments may be applicable depending on the budget option that was selected. He pointed on the numerous public hearings and workshops that had been held regarding the budget, noting another public hearing was scheduled at Edmonds City Council Approved Minutes November 25, 2008 Page 11 next week's Council meeting. He suggested the Council discuss the budget options and provide direction to staff to prepare the documents for one of the options. Councilmember Wambolt suggested the Council discuss limiting the budget to one year. Councilmember Bernheim anticipated revenues would be lower than projected and expenditures would be higher than budgeted. He noted by adopting a 2 -year budget, the Council did not have to spend 31/2 months next year on this same process. He did not support Option 3 which basically said the City could get by next year if the Council spent the year figuring out what to do. Councilmember Wilson recalled he spoke in favor of a 1 -year budget previously for the reasons Councilmember Bernheim outlined. However, he was increasingly concerned that with at ]east three elections next year, it was unlikely the Council would get anything accomplished next year. He noted one of the values of a 2 -year budget was it committed the Council to a particular path. One of the values of Option 3, which he did not support, was it identified the cuts that would be made if another revenue source was not identified. Councilmember Wambolt anticipated the cuts identified in Option 3 would be necessary because revenues were likely to be lower and expenditures could be higher. He suggested pursuing Option 3 but only for 2009. Councilmember Dawson commented she was in an odd position because she would not be on the Council next year. Option 3 put the public on notice that these cuts would be necessary if changes were not made. She saw little difference between Options 3 and 1 or simply adopting a 1 -year budget. She noted the advantage of a biennial budget was it made it easier the second year because only tweaks were necessary. Unless the Council was ready to commit to the cuts in Option 3, she suggested the Council adopt a 1 -year budget. She viewed Option 1 as "head -in- the - sand" and if the Council was not ready to commit to cuts and was not sure how additional revenue would be generated, she felt a 1 -year budget was preferable. She concluded she would concur with the majority of the Council because she would not be here to make those difficult decisions next year, to raise taxes or cut services. She suggested a 1 -year budget was the most intellectually honest option. Councilmember Orvis commented if the Council selected Option 1, he would make amendments to add some of the cuts described in Option 3 and if the Council selected Option 3, he would make amendments to remove some of the cuts. He agreed the Council needed a starting point and he was amenable to starting with either Option 1 or Option 3 and possibly making an amendment for a 1 -year budget. Council President Plunkett commented the Council could not adopt a budget subject to the voters endorsing an additional revenue source. He did not find Option 3 intellectually dishonest, pointing out it identified $486,000 in cuts in 2009 and if the voters did not support additional revenue, there would be $1 million in cuts in 2010. He noted Option 3 built the case for asking the voters for their assistance in the future. If they were unwilling, nearly $1 million in cuts would be made. He summarized Option 3 identified the future; it would get tough and the assistance of the voters was needed. Councilmember Wilson commented Options 2 and 3 were not the answer because he was unwilling to support a budget that closed Yost Pool, foresees the closure of 31 neighborhood parks, eliminates the DARE program, Beach Rangers, etc., all the things that made Edmonds the great community that it is. He supported starting with Option 1, funding the current level of service, allow for cuts already planned such as not filling vacant positions and add cuts as the Council deems appropriate. In response to the comments regarding intellectual honesty, he pointed out the previous Council adopted a 2008 budget with Edmonds City Council Approved Minutes November 25, 2008 Page 12 a $2.5 million deficit via the use of reserves. He did not find it fair that the Council now wanted to make draconian cuts. Councilmember Wilson suggested the Council determine the level of service it wanted to provide and go to the public for a new revenue source. He noted the 2008 budget assumed an EMS levy would be approved and if it had not passed, that the budget situation would be significantly worse. He suggested starting with Option 1 and make cuts as the Council chose. He noted another reason a 1 -year budget and Option 3 were not appropriate was it would make it increasingly difficult to hire employees if the budget only included funding for positions for one year. He commented the revenue work group discussed a revenue bond and Finance staff indicated they had so many priorities it would be difficult to work on a bond with five employees in the Finance Department and two vacancies. Council President Plunkett suggested the Council could begin with Option 3 and make amendments that funded the DARE program, Yost Pool, etc. Councilmember Dawson commented Option 3 would be an honest option if the Council committed to making those cuts if another revenue source was not approved by the voters. Unless the Council was prepared to make those cuts or other cuts that added up to those amounts, she felt they were being dishonest to the public. Adopting a status quo 2 -year budget that did not identify how cuts would be made in the future was a distinction without a difference to adopting a 1 -year budget. Another option would be for the Council to adopt a budget with a budget note that stated a ballot measure was anticipated as part of the plan for 2009. She spoke in favor of being honest with the public, that either draconian cuts would be made to services or that new revenue sources must be identified. It was not fair to say cuts would be necessary but cuts would not be made to the parks, Yost Pool, the Police Department, the Fire Department because unless new revenue was identified, cuts to those programs would be necessary. She appreciated the Mayor identifying cuts that would be necessary unless new revenues were identified. Councilmember Wambolt pointed out the City had adopted 1 -year budgets in the past; it was not necessary to adopt a 2 -year budget to hire employees. He cautioned against using the 2007/2008 budget as a benchmark, noting it was not a standard of excellence and should not have been adopted with a deficit. With regard to the three options, he pointed out Mayor Haakenson presented one budget and the Council asked him to identify potential cuts that could be made. He disagreed with the Council proceeding with Option 1 after that exercise. Councilmember Orvis emphasized the need to find a starting point and then make amendments. He suggested Option 1 as a starting point and Councilmembers make amendments to incorporate additional cuts. Councilmember Bernheim expressed support for Option 2 as it made the most immediate cuts and forced the Council to prioritize programs. As an example, he did not find the DARE Program the highest priority for the City's limited funds; preferring programs like Yost Pool as a home -grown DARE program. He agreed with the proposal not to hire new employees, preferring to get by for another two years. In an increasingly poor economy, he anticipated fewer employees would leave the City. Student Representative Warren preferred Option 3, finding it best to consider the worst scenario; to identify cuts that would be necessary if another revenue source was not identified. He also supported a 1- year budget and postponing the elimination of the Crime Prevention Program as increased crime could lead to additional expenditures in the Police Department. He found Option 1 fiscally irresponsible as it anticipated the RFA would be approved and in 2010 the ending fund balance was only $187,648. Edmonds City Council Approved Minutes November 25, 2008 Page 13 Councilmember Dawson recalled the reason the Council chose not to take action on the budget tonight was because one Councilmember was not here. COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER WILSON, NOT TO APPROVE OPTION 2. Councilmember Wilson commented Councilmember Olson was unlikely to be upset if the Council made progress tonight. He had anticipated the Council would give direction regarding an option tonight. MOTION CARRIED (5 -1), COUNCILMEMBER BERNHEIM OPPOSED. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO GIVE STAFF DIRECTION TO START WITH OPTION 1. Councilmember Bernheim commented he could support starting with Option 1 and Councilmembers could propose amendments for cuts and additions. Councilmember Dawson commented what was really being proposed was Option 3 with the potential for a 1 -year budget. The difference between Option 1 and 3 is that Option 3 has some cuts in 2009 and Option 1 does not have any cuts in 2009. She noted Option 1 was simply taking the Mayor's budget and adding and deleting things which was the normal budget process. She was comfortable with that process as long as significant cuts were made in the 2010 budget. Councilmember Wilson suggested next week the Council consider a resolution committing themselves to a ballot measure on a date certain or cuts to avoid a ballot measure. Councilmember Bernheim did not support Option 1 if it presumed approval of an RFA. Councilmember Wilson agreed he would not support Option 1 if it assumed an RFA. He learned via discussions with staff that although Option 1 referred to an RFA, it actually assumed some other revenue option which may be a levy or an RFA. He assured Option 1 did not assume the new funding option would be a RFA. Mayor Haakenson suggested the Council simply state Option 1 with a new revenue source, either a RFA, parks levy, levy lid lift or other source. Councilmember Dawson clarified that was the intent of the maker of the motion that Option 1 did not assume a RFA but some additional revenue source that was likely voter- approved. Councilmember Wambolt noted there was also an assumption that amendments would be made to Option 1 next week. MOTION CARRIED UNANIMOUSLY. Councilmember Wilson expressed his appreciation to Mayor Haakenson for providing Options 2 and 3 to identify potential budget cuts, commenting it would not have been possible for him to get to this point without that information. Council President Plunkett echoed Councilmember Wilson's comment, noting this process was worthy of the time and effort and was what the Council and the public needed. COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER ORVIS, TO EXTEND THE MEETING UNTIL 11:00 P.M. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes November 25, 2008 Page 14 Non- 6. 2009 NON - REPRESENTED COMPENSATION Represented Compensa- tion Human Resources Manager Debi Humann explained in the City, non - represented wages were impacted by three main actions: 1) the annual salary survey required by the Non - Represented Compensation Policy (NRC), 2) an annual Cost of Living Adjustment (COLA) approved by Council, and 3) annual merit increases tied to employee performance. A modified salary survey was conducted per the NRC policy and the results of the Police Chief and the HR Assistant positions were included in the Council packet. The salaries were slightly lower than last year which lowered the 2009 bands for all non - represented positions. She referred to spreadsheets provided by Finance that identified the current bands and the proposed new bands that resulted from the survey. Ms. Humann explained non - represented employees have historically received the same COLA as union employees. The City's unions have negotiated the following COLAs: Teamsters will receive a maximum of 5.5 %, Police and Law Support will receive a 6.2% COLA, and Fire and SEIU will receive a 5.8% COLA. She acknowledged the City's economic issues, noting the importance of considering the internal equity of employees when considering the 2009 non - represented employees COLA. She cited serious salary compression issues between management and the people they supervise. For example, management does not receive overtime pay while the people they supervise receive this benefit. In the Police Department, one sergeant earns more than both Assistant Police Chiefs with three others within 5% of the lower paid Assistant Police Chief's annual salary. In Fire, currently several employees earn more than the Assistant Fire Chief and two others are close behind. Union employees' receipt of the negotiated COLAs will add significantly to the salary compression issue between management and employees they supervise. In order to maintain some internal equity, she requested the non - represented staff receive a 5.8% COLA in 2009. She referred to the spreadsheet which reflects the non - represented wage bands with the recommended COLA. Even with the 5.8% COLA, salary compression for Police management staff will continue to be an issue as their union members will receive a 6.2% COLA. She noted the proposed COLA for non - represented management staff was included in the proposed budget and would not require additional funding. She explained as a result of the current economic situation, Mayor Haakenson froze all non - represented employee merit increases. Union employees are not bound by this wage freeze and eligible employees will continue to receive their negotiated annual increases of approximately 5% which further compounds salary compression issues between management and the people they supervise. She anticipated if the Council did not approve a 5.8% COLA for non - represented staff and compression issues continued to overlap management salaries, the impact would be felt in retention of key employees as well as the City's ability to compete in the marketplace for critical management staff. She noted in the past 18 months, the City had lost 6 non - represented employees who found more lucrative jobs. She recalled during the budget preparation, there were discussions regarding the number of staff members. She explained the City operates with a minimum number of employees as compared to other cities. She relayed her research to compare the City's FTE and population to other cities; Edmonds ranked at the 10th position out of 17 cities or 1 below the median. However, only 3 of the 17 cities, Edmonds, Renton and Lynnwood, offer Fire, Police, Municipal Court, Community Public Pool, and Wastewater Treatment Plant services. Lynnwood is ranked at L -2 and Renton is ranked at L -4 for FTE while Edmonds is ranked at L -10. She summarized although Edmonds' ratio of staff to population shows Edmonds in the 10`" position, it was largely due to the management team that the work is still getting done via long hours, no overtime and without perks other cities provide such as additional premium pay for education and longevity, paid management leave, etc. Edmonds City Council Approved Minutes November 25, 2008 Page 15 She requested the City Council's endorsement and approval of the new wage bands reflecting the results of the 2009 salary survey and further approval of a 5.8% COLA for non - represented staff for 2009. Once approved, the City Attorney will prepare the annual non - represented salary ordinance for Council final approval. Mayor Haakenson asked how many employees were covered by the non - represented salary compensation plan. Ms. Humann answered approximately 43; the City had a total of 273 employees. Mayor Haakenson clarified those 43 were not represented by unions and the remaining employees were represented by unions. Ms. Humann responded the 43 were currently not represented; a group of them recently filed with PERC to form a union. Councilmember Wambolt pointed out the salary survey indicated the bands needed to be lowered slightly. He asked whether the other cities' salaries included a COLA. Ms. Humann explained the salary survey considered 2008 salaries with the 2008 COLA. Councilmember Wambolt asked whether she assumed those cities would add a 2009 COLA to their compensation. Ms. Humann answered yes. Councilmember Bernheim asked the names of the six non - represented employees who left the City. Ms. Humann answered she did not have the list but recalled they were primarily from the second floor. Mayor Haakenson answered they were predominately from engineering. Councilmember Bernheim recalled one was Assistant City Engineer Don Fiene; Ms. Humann recalled the Traffic Engineer and a Senior Planner also left. Mayor Haakenson clarified they did not resign to take jobs with other cities but for jobs in the private sector. Ms. Humann pointed out many of the employees who left also had a great deal of historical knowledge. Council President Plunkett commented he was more sympathetic to this issue than he had been in the past. He was acquainted with someone who owned a large engineering company that had an HR staff of approximately ten people who recruited employees from cities. He concluded if the City did not pay its employees what the marketplace did, they would leave. COUNCIL PRESIDENT PLUNKETT MOVED, SECONDED BY COUNCILMEMBER DAWSON, FOR APPROVAL OF THE NEW WAGE BANDS AND THE 5.8% COLA. Councilmember Wambolt commented the survey did not address Council President Plunkett's concern as it only compared employees' salaries between cities not the private sector. He regretted the Council did not budget for a compensation consultant last year. He pointed out salaries and benefits comprised 70% of General Fund expenditures. During the period 2003 - 2008, salaries were up by 23 %; during that same period of time, the CPI index increased 18 %. Even with the elimination of some higher paid positions in recent years, salaries continue to increase. During the past year, three year labor agreements were approved that provide 6.2% increases for Police and 5.8% increases for Fire. He questioned whether those increases would have been approved if negotiated today. Now the Council is asked to approve a 5.8% increase for non - represented employees and told that to do otherwise would be unfair. Unfortunately, life is not always fair and he anticipated a preponderance of Edmonds taxpayers felt they were being treated unfairly by their employees, some receiving limited or no pay increases, having their salaries decreased, taking days off without pay or being laid off. Councilmember Wambolt pointed out $6 million or 17% of the City's total revenue was budgeted to come from sales tax, a small increase over 2008; however, in view of the downward spiraling economy, it was very possible $6 million would not be collected. The City's General Fund reserve or ending fund balance will increase a modest amount if everything goes as planned but the balance would remain at a Edmonds City Council Approved Minutes November 25, 2008 Page 16 historically low level. Good judgment dictates it is time to trade fairness for prudence and he regretfully could not support the proposed increase but could support a lower amount. Councilmember Dawson commented she had previously supported a 5.5% increase but was persuaded by staff's research that a 5.8% increase was appropriate. She pointed out Edmonds staff was asked to do more with less and would be asked to do even more in the coming years. In order to retain staff, it was necessary to provide fair compensation. She noted this COLA was included in the budget, yet no Councilmembers had proposed a cut or freeze and not approving the increase would not solve the City's budget crisis. She supported the proposed 5.8% COLA given how much these employees would be asked to do in the coming years and given the current compression issues. Councilmember Bernheim asked what COLA was factored into Options 1, 2 and 3. Councilmember Dawson answered the amount recommended, 5.8 %. Councilmember Bernheim pointed out the 5.8% COLA for the 43 non - represented employees equated to approximately $220,000. Ms. Humann answered it was $205,000. Mayor Haakenson asked the total amount of the COLA for the union contracts. Ms. Humann recalled it was approximately $800,000. Councilmember Bernheim commented as an employer himself, COLAs were not expected and were dependent on income and if employees left taking their experience, so be it. It was the responsibility of the Mayor to make the job attractive enough so that employees did not leave. As an example, he acknowledged his employees could earn more elsewhere, but the work environment he created as well as tangible and intangible benefits encouraged them to stay. He could not justify to the taxpayers a 5.8% across - the -board COLA increase because the budget was too tight. Mayor Haakenson pointed out the Council voted to approve that COLA for all four of the union contracts. Councilmember Bernheim commented the contracts were presented to the Council as a fait accompli. Mayor Haakenson disagreed, noting the Council gave staff direction with regard to negotiations. Councilmember Bernheim regretted the decisions he made as a new Councilmember to approve a 6% COLA and a 1% increase for the Fire Department for maintaining their physical fitness. In addition, the economic situation was more serious now than it was 4 -6 months ago. He concluded the City simply could not afford the 5.8% COLA for non - represented employees. Councilmember Wilson acknowledged it was difficult for staff to hear this discussion by Council. As a new Councilmember, he was surprised at how tense the relationship was between Council and staff. He pointed out to staff the absence of Council discussion regarding furloughs, concluding the Council as a whole wanted to do well by staff and recognized that employees were the City's biggest asset. He encouraged staff to assist the Council with resolving the revenue problems, concluding if the Council and staff were not on the same team, resolution would not be possible. Councilmember Dawson commented it was typical for employees to receive regular COLAs and many governmental agencies have depoliticized the process by adopting a policy that non - represented employees receive a COLA in the amount received by the largest bargaining group. The City Administration was already mindful of the budgetary situation by freezing merit increases. With regard to furloughs, she was pleased this Council had not seriously entertained that concept because of the difficulty getting the unions to reopen their contracts to add ten days of unpaid leave. Imposing that on only non - represented employees would effectively reduce their salaries by ten days a year. She preferred to adopt staff's recommendation and send a message to the non - represented employees they were valued and their hard work was recognized. Councilmember Wambolt commented the discussion regarding wage compression was apples and oranges because it should not consider overtime. He recalled in his last position he received a base salary Edmonds City Council Approved Minutes November 25, 2008 Page 17 that was double the highest paid employee, yet often other employees earned more because of commissions. He agreed retaining employees had much to do with leadership; in his experience the primary reason employees left for another job was not salary. He expressed support for a lower COLA such as 3 %. Councilmember Orvis expressed support for the 5.8% COLA as a reasonable compromise. He recalled working for employers who did not give COLAs or reduced benefits but it was applied throughout the organization. MOTION CARRIED (4 -2), COUNCILMEMBERS BERNHEIM AND WAMBOLT OPPOSED. Parks, 7. REVIEW AMENDMENTS TO THE EDMONDS PARKS RECREATION & OPEN SPACE Recreation COMPREHENSIVE PLAN UPDATE. & Open Space comp Plan parks & Recreation. Director Brian McIntosh provided a history of previous action including review of the Parks, Recreation & Open Space and Community Cultural Plans on March 18 and a public hearing on April 15. Comments from citizens were then incorporated into the Plans and staff presented updated Plans to the Council on May 20 and a second public hearing was held on July 15 and additional amendments were made to the Plan. At the Council's special workshop on August 18 the Plans were discussed again. In response to the Council's desire to ensure that the Plan not be any less ambitious than the previous Plan, staff added language to enhance the aspirational goals of the City to adopt the National Recreation & Park Association (NRPA) recommended standards. These aspirational standards reflect the City's long term goals. A second change in the Plan is the inclusion on page 7 -2, Funding Plan, of some examples of City capital and acquisition projects that could be funded through a voter approved General Obligation Bond. Councilmember Bernheim inquired about the City's bonding capacity. Mayor Haakenson answered the City had significant bonding capacity. Councilmember Wilson expressed his appreciation to Mr. McIntosh for his efforts to address his concerns. With regard to level of service, he found the amendment a fair compromise, recognizing that some in the community will continue to believe the Plan adopts a reduced level of service. Although the second amendment was less than he would have liked, he acknowledged staff made a good faith effort. He asked Mr. McIntosh to summarize his response to the Council regarding how this Plan differed from the previous Plan. Mr. McIntosh recalled there were approximately six changes highlighted in his memo but none of them were major changes. He summarized in addition to the six times the Plans were discussed with the Council, there was a public hearing and two reviews by the Planning Board. He concluded the Plan had been well reviewed and he was satisfied with the product. COUNCILMEMBER DAWSON MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO ADOPT THE PROPOSED AMENDMENTS TO THE PLAN AND INSTRUCT THE CITY ATTORNEY TO PREPARE AN ORDINANCE TO FORMALLY AMEND THE CITY OF EDMONDS COMPREHENSIVE PLAN TO INCLUDE THE UPDATED PARKS, RECREATION & OPEN SPACE COMPREHENSIVE PLAN AND COMMUNITY CULTURAL PLAN. MOTION CARRIED UNANIMOUSLY. 8. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF NOVEMBER 10, 2008. Community/ Community Services /Development Services Committee Development services Councilmember Wilson reported the Committee had continued discussion on the Community Committee Sustainability Element of the Comprehensive Plan; staff will return to the Committee with an implementation plan. Edmonds City Council Approved Minutes November 25, 2008 Page 18 Finance committee Finance Committee Councilmember Wambolt reported the Committee discussed the 2009 Non - Represented Compensation and referred it to Council with no recommendation. Next, staff provided a third quarter budget report. Sales tax projections for the year are 7% or $382,000 under budget, utility taxes are anticipated to be $35,000 over budget, the Development Services Department expects construction related receipts to meet 2008 budget estimates, REET receipts are 56% below budget to date and anticipated to be 50% of budget by year end and departmental expenses are $1.8 million under budget. The Committee also reviewed a staff report discussing the final 2008 budget amendments which was approved on last week's Consent Agenda. The final item was a Fair and Accurate Credit Transaction Act (FACTA) Red Flag Guideline Policy which was also approved on last week's Consent Agenda. Public Public Safety Committee Safety Committee Councilmember Bernheim reported the Committee discussed cat licensing. They did not provide a recommendation and Animal Control will present the cat licensing ordinance to the full Council on December 16. The Committee also discussed a disaster recovery plan which will be presented to the full Council on December 16. 9. COUNCIL REPORTS ON OUTSIDE COMMITTEEBOARD MEETINGS. Health Councilmember Orvis advised information regarding the Snohomish County Health Board was in the Board Council packet. Lane Councilmember Wilson reported a Lake Ballinger Forum meeting was held on December 5 and their first Ballinger p g g Forum public open house on December 12 was attended by approximately 70 people. Port Councilmember Wambolt reported the Port of Edmonds passed a resolution establishing their 2009 tax commission which would maintain the current level of $400,000. The Yacht Club plans to begin construction in January 2009 and expects to be done by October/November 2009. The Yacht Club signed a long term lease with NPI, Inc. for 7,053 square feet on the second floor, a company that provides seminars throughout the United States on federal government contracts, grants and agreements. The owner of Harbor Square Athletic Club provided an update on plans to refurbish and expand the building which will include an indoor and outdoor pool. The owner was willing to consider public use of the facility and will discuss this with Parks & Recreation Director Brian McIntosh. Mayor Haakenson pointed out NPI, Inc. was already an Edmonds business. 10. MAYOR'S COMMENTS Mayor Haakenson commented Councilmember Dawson had been a great addition to the Council but he was excited about her pursuing something she was excited about. He wished her the best. Mayor Haakenson commented it was fun to have so many kids in the audience and speak to the Council. In particular he recognized the eloquence of Quinn Jackson and Isabella Rohani and encouraged them to speak to the Council in the future. He wished everyone a Happy Thanksgiving. 11. COUNCIL COMMENTS Councilmember Orvis congratulated Councilmember Dawson on her new job in Washington DC. Edmonds City Council Approved Minutes November 25, 2008 Page 19 Councilmember Dawson agreed with Mayor Haakenson's comment regarding the kids who spoke to the Council. She was thankful to have lived in Edmonds, a city where people brought their kids to the City Council meeting to talk about what they loved about the City. Reduce Councilmember Bernheim recalled a few weeks ago he reported how he had cut his natural gas Natural Gas consumption by 60% as compared to October 2007. He reported his monthly electric consumption was Consump- tion less than 300 kilowatt hours per month and urged the public to monitor their daily electrical use. In his home, the daily use was approximately 10 kilowatt hours; in the average home and in his home two years ago the average was over 30 kilowatt hours. He urged the public to radically reduce their use which not only helped the environment but the financial savings kept money in the community. Tree Lighting Councilmember Wilson announced the Tree Lighting Ceremony on Saturday at 4:30 p.m. and a book sale sooksale at Barnes & Noble benefiting the Edmonds Public Education Foundation on December 11 -13. siaewalk/ Councilmember Wambolt requested Mayor Haakenson use his influence to get the sidewalk in front of ova Old Milltown open by Christmastime this year. He expressed concern that the construction company on Milltown that project, Belfor, moved out today. He also suggested the developer be encouraged to complete the sidewalk and building at 3rd & Dayton. 12. ADJOURN With no further business, the Council meeting was adjourned at 10:55 p.m. Edmonds City Council Approved Minutes November 25, 2008 Page 20