03/23/2007 City CouncilMARCH 23 - 24, 2007
The Edmonds City Council retreat was called to order at 9:10 a.m. at the Country Inn in La Conner,
Washington.
ELECTED OFFICIALS PRESENT
Friday, March 23
Gary Haakenson, Mayor
Peggy Pritchard Olson, Council President
Deanna Dawson, Councilmember
Michael Plunkett, Councilmember
Richard Marin, Councilmember (arrived 2:46 p.m.)
Mauri Moore, Councilmember
Dave Orvis, Councilmember
Ron Wambolt, Councilmember
Saturday March 24
Gary Haakenson, Mayor
Peggy Pritchard Olson, Council President
Deanna Dawson, Councilmember
Michael Plunkett, Councilmember
Mauri Moore, Councilmember
Dave Orvis, Councilmember
Ron Wambolt, Councilmember
PUBLIC PRESENT
Friday, March 23 & Saturday, March 24
None
STAFF PRESENT
Friday March 23 & Saturdav March 24
Tom Tomberg, Fire Chief
David Stern, Chief of Police
Duane Bowman, Development Services Director
Stephen Clifton, Community Services Director
Dan Clements, Administrative Services Director
Brian McIntosh, Parks & Recreation Director
Kathleen Junglov, Asst. Admin. Services Director
Noel Miller, Public Works Director
Debi Humann, Human Resources Manager
Scott Snyder, City Attorney
Linda Carl, Senior Executive Assistant
Jana Spellman, Senior Executive Council Asst
Jeannie Dines, Recorder
WORK SESSION WITH CITY ATTORNEY AND CITY COUNCIL
Executive Sessions
City Attorney Scott Snyder was present for this discussion. Councilmembers reviewed a draft with
amendments to the Council Rules of Procedure regarding Executive Sessions. Discussion followed
regarding topics appropriate for Executive Session, ability for a majority of the Council to determine
whether to make an issue/topic public or remain in Executive Session, relevant State statutes, the
Council's practice of keeping minutes of Executive Session to maintain record of consensus, mechanics
of notice, and reaching consensus in Executive Session what would be discussed in open session.
It was agreed Executive Session information would not be released absent a consensus in Executive
Session regarding information to be made public.
Request for Public Records
Council discussed the cost of requests for public records and the City's obligation to provide public
records. Mr. Snyder suggested periodic training for each department by Ogden Murphy Wallace;
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March 23-24, 2007
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advising City Clerk Sandy Chase was scheduling a training session. Discussion followed regarding
difficulty determining what records the public wanted and assistance that would be provided via an
electronic index of all records. Suggestions included having a presentation at Council to educate the
public regarding how to request records and the cost, requiring plans be electronically submitted so that
they were easily reproducible, and establishing a committee to discuss rules and procedures and possibly
adopting the Attorney General's model rules. It was agreed the Finance Committee would discuss rules
and procedures for public records requests and possibly adopting the Attorney General's model rules.
Council/Mayor/Staff/Attorney Roles
Mr. Snyder reviewed the roles of the Council, Mayor, Staff and City Attorney. He suggested establishing
rules for Council committees and the duties of the Council President and how those duties were carried
out. He also recommended when the public makes a request, the Council make a motion or refer the
matter to committee. Discussion followed regarding who has the ability to terminate the City Attorney,
when Council could hire its own counsel, administrative issues versus policy issues, how issues were
placed on committee agendas, the purpose of committees if all topics are forwarded to the Council,
examples of when the committee structure worked well, and other Councils that hold committee -of -the -
whole meetings on committee night.
Suggestions included scheduling agenda items so that the City Attorney was not required to attend every
meeting, redirecting citizens' energy into process, involving the public to avoid adversary roles, and
holding committee -of -the -whole meetings rather than committee meetings.
Boards and Commissions
Councilmembers discussed whether the Council should make appointments versus the Council
confirming the Mayor's appointments. Following a brief discussion, Councilmembers agreed to discuss
this topic further tomorrow.
Miscellaneous
Councilmember Plunkett raised the issue of the method by which Councilmembers were recognized to
speak at Council meetings, suggesting the Council returning to the practice of Councilmembers raising
their hand to be recognized versus calling out. Mr. Snyder pointed out the rule was that each
Councilmember had an opportunity to speak before a member was recognized for a second time which
was intended to avoid a back -and -forth commentary between Councilmembers. He advised some cities
use a light panel that allows Councilmembers to push a button to be recognized. It was agreed to ask
Mayor Haakenson to return to policy of recognizing Councilmembers via raised hands.
Suggestions included that the Council and Mayor do a better job of avoiding back and forth commentary,
not beginning debate until a motion was on the floor, having the Mayor invite comments from
Councilmembers in a left to right sequence with the Mayor speaking in that order as well, possibly
seating the Mayor at one end of the dais so that he can see the Council better, and if a topic is a
Councilmember's issue, they be given deference to make the motion. Mr. Snyder advised of his plans to
develop clearer guidelines for quasi judicial proceedings. Council President Olson agreed to work with.
Ms. Spellman on a list of procedural changes. A brief discussion followed regarding the order in which
Audience Comments appears on the agenda; no change to the current policy of scheduling Audience
Comments after public hearings was recommended.
Mayor Haakenson and Staff joined the Council at 11:20 a.m.
Discussion with Mayor Haakenson and Council
Mayor Haakenson explained he requested staff structure the retreat around the City's financial situation.
He advised another issue that would not be addressed today but had the potential to be expensive was the
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March 23-24, 2007
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extensive backlog in City building maintenance projects. He suggested the Council consider, 1) a budget
adjustment at end of year to replenish the fund, or 2) adding $100,000 from the sale of the property
associated with Angler's Crossing to the fund.
Mayor Haakenson distributed a summary of the work to date by the Citizens Committee on U.S. Mayors
Climate Protection Agreement. Public Works Director Noel Miller and he commented on current City
practices to reduce energy use and promote energy reductions. Mayor Haakenson also included a
newspaper article entitled, "Effects of Climate Change." He supported the formation of a subcommittee
to discuss incorporating green building codes into City codes, suggesting a Councilmember serve on that
committee along with staff and builders.
Next Mayor Haakenson raised the issue of creating a parking space for a hybrid plug-in in the Public
Safety parking lot. He offered to have staff investigate the cost to provide electricity to a parking space as
well as a fee for the service (to avoid a potential gift of public funds) if the Council was interested in
pursuing this issue. Discussion followed regarding the current inability to commercially purchase plug-in
vehicles, approximately 30 currently licensed in Washington, providing signage that the parking space
was available for that use but not prohibiting other parking, what other types of vehicles could use the
plug-in, and the potential marketing opportunity the availability of the plug-in would provide.
Councilmembers expressed a desire for further information regarding what type of other vehicles could
use the plug-in. It was agreed staff would bring further information to the Council at a work meeting
regarding providing a plug in for electric vehicles.
Mayor Haakenson advised Human Resources Manager Debi Humann investigated a medical insurance
plan available through AWC that would save the City money, a portion of which could be offered to
unions via a post -retirement health savings plans. The plan was described to union leaders and staff
offered to have AWC make a presentation on the plan; their initial reaction was three of four unions were
not interested and one thought they would be losing something. The unions have until Monday to advise
whether they want staff to pursue the plan with AWC. If the unions were not interested, Ms. Humann
will not pursue it. Therefore, the agenda item regarding medical coverage would not be discussed further
today. He advised staff may pursue this plan in the future for non -represented employees to determine if
there were significant savings and offer it to the unions again in the future.
Mayor Haakenson advised the State's capital budget includes $500,000 for the purchase of the former
Woodway Elementary School property and $100,000 for the Shell Creek property. It was suggested 2-3
Councilmembers call Senators Paull Shin and Darlene Fairley today to urge their support.
1. SESSION OVERVIEW AND GOALS
a) Increase Understanding of Edmonds Current Financial Position
Administrative Services Director Dan Clements provided a PowerPoint presentation entitled "Positioning
for Our Financial Future." He reviewed the City's current financial situation including Moody's Al
Bond Rating, General Fund reserves that include a General Fund balance of $4.2 million as of December
31, 2006 and an emergency reserve balance of $2 million. He reviewed efficiencies and best business
practices that include Council e-agendas, staff training and continuing education, purchase cards for
acquisition, expanded City Hall hours, biennial budget, on-line credit card payment, financial system
overhaul, new phone system, new pennitting system and new business licensing system. He described
funds provided in 2001 via the Sno-Isle annexation; expenditure cuts of $1,248,000 in 2003; Street
Transfer reductions in 2006, 2007 and 2008; and revenue increases that included an. EMS levy in 2003;
use of banked capacity in 2002, 2003, 2006 and 2007; Olympic View Water franchise in 2004; LID
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Guarantee in 2004, 2005, and 2007; utility tax increases in 2003, 2007 and 2008; and possibly sales tax
sourcing in 2007. Council requested staff provide the amount of savings provided via Council e-agendas.
b) Describe Edmonds Future Financial Position
Mr. Clements reviewed a chart illustrating revenue growth 2002-2008. He displayed a projection for
years 2007 — 2012 with and without a 2007 EMS levy.
During and following Mr. Clements' presentation, discussion ensued regarding projections for sales tax
sourcing, concern with the 2009-2010 budget, inclusion of the EMS levy in the 2007 budget, and impact
on the budget if an EMS levy was not pursued. Next, Mr. Clements described budget drivers, reviewing
the rate of increase in property tax (2%), sales tax (5%) and utility tax (3.5%) versus the rate of increase
in labor (6%), fleet (6.1%) and construction (10%) versus CPI (4.1%).
c) Discuss Strategies for Managing the City's Future Finances
Mr. Clements explained strategies for managing the City's financial future include revenue strategies,
efficiency strategies, reduction strategies and compensation strategies. He advised revenue strategies
were grouped into three major categories, those requiring Council approval, those requiring voter
approval and those requiring State legislative approval. He advised the Council would participate in an
exercise later to identify revenue strategies and reduction strategies they were interested in staff gathering
additional information and strategies they were not interested in pursuing.
d) Council Sign -Off on Policies to Address Edmonds Financial Future
i) Revenue Policies
ii) Efficiency Policies
iii) Budget Reduction Policies
iv) Compensation Policies
2) Edmonds Present Financial Position
a) Overview of Current Financial Position
b) Positives, Negatives, and Exposures
c) Primary Budget Drivers
d) General Fund Projection Model
3. Positioning Edmonds for Its Financial Future
a) Revenue Options
Assistant Administrative Services Director Kathleen Junglov and Mr. Clements reviewed the following
revenue options that required Council approval, an estimate of the revenue each would provide in 2008-
2011 and pros and cons of each:
• B & O Tax (0.2% Maximum)
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• Cable TV utility tax to 6%
• Gambling tax
• Water, Sewer, Storm Utility Tax to 7%
• Reduce Cemetery Subsidy — Police Chief Stern was asked to research the rate and billing of aid
provided to DUI stop
• Broadband Initiative
• Emergency Reserve
Ms. Junglov and Mr. Clements reviewed the following revenue options that required voter approval, an
estimate of the revenue each would provide in 2008-2011, and pros and cons of each:
• General Property Levy Lid Lift
• EMS Levy
• Transportation Benefit District
Mr. Clements reviewed the following revenue options that required State Legislature approval and an
estimate of the revenue each would provide in 2008-2011:
• Ferry Traffic Mitigation — it was suggested Mr. Doubleday be asked how this could most
effectively be pursued.
• REET for Transportation
Ms. Junglov reviewed the following additional revenue options and pros and cons of each:
• Sale of surplus property
• Traffic light cameras
• Seattle Internet charges — Mr. Clifton advised of staff s plans to research the case that Seattle won
recently that would allow them to impose a utility tax on the internet.
• Annexation of a portion of Esperance
i) 2007 EMS Levy (Tom)
Mr. Clements advised the current budget calls for approval of a 2007 EMS levy which would become
effective in 2008.
Fire Chief Tom Tomberg described funds provided via an EMS levy ($1.2 million), explaining it would
maintain existing service levels, balance the 2008 budget and address unmet Fire needs. The EMS levy
would increase the levy from 0.36124 to 0.5 per thousand dollars of assessed valuation. He explained the
rate decreases annually due to tax limitations and as the rate falls, the General Fund subsidy increases.
The impact on a $500,000 home would be $5.83/month or $70 annually. He advised if the levy failed, it
would return to the existing rate. He reviewed the timeline for placing the levy on the primary election
ballot and the cost of an election.
Discussion followed regarding concern with the timing of the EMS levy and the tight timeline for a 2007
vote, time necessary to educate the public regarding a transport fee, and the potential impact the EMS
levy could have on the Sound Transit/RTID transportation package that includes funding for Edmonds
Crossing.
It was the consensus of the Council to delay an EMS levy until 2008
ii) City & Levy
b) Efficiency Reductions
c) Efficiency & Reduction Options
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Mr. Clements reviewed the following efficiency options:
• Public records request: automation
• Internet payment extended to all operations
• Eliminate paper/paper forms where possible
• Reassigning staff based on current needs
• City medical coverage and options
• City bargaining and compensation policies
(Councilmember Marin arrived at 2:46 p.m.)
Ms. Humann described the following labor cost efficiency options
• Alternatives for medical plan coverage
• Compensation and bargaining policies
A brief discussion regarding negotiation strategies followed.
Ms. Humann reviewed the existing L5 non -represented employee compensation plan including inequities,
difficulty finding comparables for approximately half the non -represented positions, represented
employees' compensation often exceed their non -represented supervisors, lack of any internal
comparison, and time intensive for HR staff. She recalled an alternate compensation plan, the NRC plan,
was presented to the Council in August 2006. The Council made a decision to retain the existing plan; all
non -represented employees received a 3% COLA and a merit pool was established in the 2007-2008
budget. She suggested the Council consider the following alternatives, 1) look at the NRC and identify
weakness and develop alternative strategies, 2) look at the existing L5 and identify weakness and develop
alternate strategies or 3) develop an independent compensation plan. Discussion followed regarding
concerns with the existing L5 plan and the proposed NRC plan, pros and cons of a salary survey, merit
pay dependent on department/independent goals, loss of key employees, difficulty replacing employees
due to the salary structure, difficulties finding comparables, lower staffing levels in Edmonds, and non -
represented employees' satisfaction with the NRC plan.
It was the consensus of the Council to have staff bring the NRC policy back to Council for review.
i) Best Practice Initiatives: General Operations, Medical Coverage (Debi),
Bargaining & Compensation
ii) Budget Reductions
During a break, the Council participated in the exercise indicating their preferences with regard to
revenue sources, EMS levy, and budget reduction measures.
Mr. Clements reviewed the following budget reduction strategies:
• $500,000 equals 1.5% of General Fund
• Possible approaches
o Across the board 1.5% reductions
o Elimination of programs or services
o Reduction of overhead costs
The first day of the retreat concluded at 4:20 p.m.
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March 23-24, 2007
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d) Council Policy Decisions
i) Revenue
ii) Efficiency
iii) Reductions
iv) Compensation
4. Up -Date Strategic Plan to Reflect Council Changes
a) Review Proposed Changes
b) Council Approval of 2007-08 Plan
SATURDAY, MARCH 24
The second day of the retreat was called to order at 9:00 a.m.
Mr. Clements reviewed the Council's preferences with regard to 2007 revenue options, future revenue
options and future reduction options and advised staff would bring back a priority on revenue options and
reduction options as a work plan (blue = interested in pursuing, black = not interested in pursuing):
Item
I Blue
Black
Enactment
Move EMS Levy to Fall 2008
15
0
Council
Future Revenue Options
item
Blue
Black
Enactment
Reduce Cemetery Subsidy
7
0
Council
Sale of Surplus Property
7
0
Council
Cable TV Utility Tax to 6%
6
0
Council
"Seattle" Internet Charges
6
0
Council
Highway 99 Petition Annexation
6
0
Council
EMS Property Tax Levy Lid Lift
5
0
Vote
Transportation Benefit District
5
0
State
Electric Utility Tax Increase to 7%
5
2
Vote
Natural Gas Utility Tax Increase to 7%
5
2
Vote
Telephone Utility Tax Increase to 7%
5
2
Vote
Solid Waste Utility Tax Increase to 7%
5
2
Vote
Water Utility Tax Increase to 7%
4
1
Council
Sewer Utility Tax Increase to 7%
4
1
Council
Storm Utility Tax Increase to 7%
4
1
Council
Emergency Transport Fee at $450
4
1
Council
Sales Tax Economic Development
4
0
Council
Traffic Light Cameras
3
2
Council
Edmonds Dance with the Stars
2
3
Council
Gambling Tax
6
Council
General Property Tax Levy Lid Lift
1
5
Vote
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March 23-24, 2007
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B&O Tax (0.2% Maximum)
0
6
Council
Emergency Reserve Fund ($2.0
million
Council
Ferry Traffic Mitigation
State
REST for Transportation
State
Future Reduction Options
Item
Blue
Black
Enactment
Elimination of Programs or Services
6
0
Council
Reduction of Overhead Costs
5
1
Council
Across the Board Reductions
0
5
Council
The Council also expressed interest in pursuing ferry mitigation.
With regard to Audience Comments on upcoming ballot issues, Mr. Snyder advised public comments
were an opportunity for the public to address the Council, not an opportunity to use the camera. He
suggested the Council establish a "bright line" with regard to public comment on ballot issues and
candidacies, to allow the public to speak about things the Council respond to but not things Council could
not respond to. He clarified residents/Council could continue to advocate for/against the Edmonds
Crossing project but not for/against RTID.
Staff left at 9:10 a.m.
Planning Board and ADB Future Agendas
Council President Olson distributed the Planning Board's extended agenda. Suggestions included
publishing the Planning Board's extended agenda on Channel 21, Council President Olson meet with the
Planning Board Chairman and Planning Manager Rob Chave regarding the Planning Board priorities
including the priority of issues referred by the Council and when pending items will be added to extended
agenda, Council President Olson to obtain an updated flowchart of agenda items from the Planning
Board, and Ms. Spellman to remind Council President Olson of monthly meeting with Planning Board
and ADB Chairs, the Mayor, and Council President.
A brief discussion followed regarding the ADB's agenda and staff hired to replace Senior Planner Steve
Bullock and Planner Meg Gruwell.
Candidate Debates
Following a brief discussion regarding past debates, it was agreed to establish a policy that the duration of
a debate be limited to approximately two hours, the sponsoring organization pay the cost of the camera
person, the sponsoring organization provide 30 days notice to candidates, and debates be scheduled on a
first come/first served basis. It was suggested Mr. Clifton draft a policy for review by Mr. Snyder and
approval by the Council.
Discussion of Policy Requiring Establishment of New Zones
Discussion ensued regarding a citizen who requested a Comprehensive Plan change who was told to wait
a year for the Comprehensive Plan process versus an applicant who pursued a similar change via another
route and why everyone was not required to go through same process. It was agreed Ms. Spellman would
seek clarification from staff regarding the difference between the two amendments. The Council
requested staff make a presentation at a work session regarding when an applicant would not have to go
through the Comprehensive Plan process. Council expressed a preference for amendments to go through
the Comprehensive Plan process.
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March 23-24, 2007
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Councilmember Moore relayed two instances where people were encouraged by the Mayor to file a claim
against the City, one in regard to emergency tree cutting. Council expressed concern that the definition of
emergency with regard to tree removal was apparently not clear in the City's ordinance.
Policy Regarding What Constitutes Affordable Housing, Preservation of Trees, etc.
Councilmembers discussed different definitions of "affordable" and developers' use of the term. It was
suggested a definition be provided for "affordable." It was agreed to request staff provide a report on
affordable housing including how affordable could apply to development in Edmonds.
Councilmember Olson relayed citizens' concern with trees cut by PUD in the right-of-way. It was
suggested staff provide the Council tree preservation ordinances from other cities.
Vision — What Does the Council Want Now?
Councilmember Moore recommended the Council establish a vision for what they want Edmonds to look
like in 20 years, a mission for how to get there and set annual goals. Suggestions included using a
facilitator for a strategic planning process, identifying projects to pursue such as the waterfront
redevelopment, delaying a visioning exercise until after the election, scheduling next year's retreat earlier
in the year and selecting the date now, and scheduling a mid -year mini -retreat.
Councilmember Dawson advised of Snohomish County planning efforts regarding positioning itself as a
destination point for visitors to the 2010 Vancouver Olympics. Suggestions included the Council
discussing how Edmonds could position itself in that effort, relaying the need for additional hotel beds in
2010 to the waterfront redevelopment committee, and considering revisions to Bed and Breakfast
regulations such as parking requirements.
Follow-up on Yesterday
Councilmembers discussed the Mayor providing a State of City address to the Council and the Mayor
submitting an annual work plan for approval by the Council. Council President Olson agreed to ask the
Mayor to prepare and submit a work plan.
With regard to how Councilmembers are recognized during Council discussion, it was agreed to have
staff investigate an inexpensive light system. It was also agreed that if an item was a particular
Councilmember's issue, they be given deference to make the motion; to request the Mayor identify when
it was appropriate to ask questions, to request a motion, and then open the issue for discussion; the
Council and Mayor make an effort to avoid back and forth debate, and to have the Mayor recognize
Councilmembers via raised hands.
The Council agreed once the public spoke at a public hearing, it was appropriate to ask questions of them.
It was agreed to revise the sign -in sheet to allow the public to sign -in in pro or con on an issue and not
provide testimony.
Councilmember Moore expressed frustration with the committee format, finding that not much was
accomplished and most items were forwarded to the Council. She suggested the Council sit as a
committee -of -the -whole on committee night. Following discussion, it was agreed items would not be
scheduled on the Consent Agenda until the week after the Councilmember gave the Committee report
unless the item was time sensitive. It was suggested Councilmembers invite Council President Olson to
attend a Committee meeting if there was a controversial item on the agenda.
With regard to Councilmember Moore's suggestion to schedule a New Business/Ideas item on the
Council agenda, Council President Olson suggested adding New Business/Ideas as an agenda item on the
Council's work session agenda.
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March 23-24, 2007
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Resolution for a 4-Year University
Councilmember Moore advised negotiations were ongoing and recommended waiting to see what
happened before passing a resolution.
Boards/Commissions
Council President Olson advised some boards/commissions had terms limits and others did not and on
some the Councilmember was the liaison and on others the Councilmember was Chair. Discussion
followed regarding the process for interviewing Directors, the Hearing Examiner, etc. via a subcommittee
of the Council; concern that the Mayor appoints staff as well as boards/commission members; and
concern that the Council rubber-stamps the Mayor's appointments to boards/commissions.
It was the consensus of the Council that they wanted more involvement upfront in the interview process
of Planning Board and ADB members including the Council providing a recommendation to the Mayor.
It was agreed to develop a list of interview questions for the Council to ask and to determine from Mr.
Snyder what the Council was allowed to do including whether the Council could conduct
Board/Commission interviews/selection in Executive Session. It was also suggested the requirements for
the ADB landscape architect be loosened to include a landscape designer.
Councilmember Dawson suggested each Councilmember appoint a Planning Board member such as was
done in Snohomish County so that Planning Boardmembers represented each district. She noted this
would create greater diversity and involve more citizens. It was agreed to ask Mr. Snyder whether that
could be done.
Basis for Removal of Boardmembers/Commissioners
Councilmember Plunkett asked whether the Council was comfortable with a boardmember/commissioner
being an advocate outside of their role as boardmember/commissioner that gave the appearance he/she
was not serving in their role as a boardmember/commissioner. Councilmembers recognized the
importance of training for boardmembers/commissioners. It was agreed to require training for all
boardmembers/commissions and AWC training for Planning Board and ADB members.
Councilmembers acknowledged if a boardmember/commissioner's reappointment was scheduled on the
Consent Agenda, a Councilmember could request the Council President pull it for discussion.
It was agreed to have Mr. Snyder make the removal provisions the same for all boards/commissions such
as attendance requirements, violation of the Appearance of Fairness Act, ex-parte communications, pre -
judgmental bias, financial interest, etc.
ADJOURNMENT
The retreat was adjourned at H :30 a.m.
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March 23-24, 2007
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