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11/06/2006 City CouncilNovember 6, 2006 Following a Special Meeting at 6:30 p.m. for an Edmonds City Council meeting was called to ord Council Chambers, 250 5"' Avenue North, Edmonds. ELECTED OFFICIALS PRESENT Deanna Dawson, Mayor Pro Tern Peggy Pritchard Olson, Council President Pro Tern Michael Plunkett, Councilmember Richard Marin, Councilmember Mauri Moore, Councilmember Dave Orvis, Councilmember Ron Wambolt, Councilmember ELECTED OFFICIALS ABSENT Gary Haakenson, Mayor Executive Session regarding potential litigation, the er at 7:00 p.m. by Mayor Pro Tern Dawson in the The meeting was opened with the flag salute. STAFF PRESENT 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 Noel Miller, Public Works Director Kathleen Junglov, Asst. Admin. Services Dir. Rob Chave, Planning Manager Dave Gebert, City Engineer Don Fiene, Assistant City Engineer Doug Fair, Municipal Court Judge Joan Ferebee, Court Administrator Scott Snyder, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder Approve 11. APPROVAL OF AGENDA Agenda COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE AGENDA. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Councilmember Wambolt requested Items E and F be removed from the Consent Agenda and Councilmember Plunkett requested Item B be removed. Item B: An>'roval of City Council Meeting Minutes of October 24, 2006 pprove loia4io6 Councilmember Plunkett requested the last sentence on page 9 be revised as follows: "The Committee Minutes considered State law governing condominium conversions and although there is not a great deal the City can do, the Committee plans- to recommended the Council discuss requiring tenants be provided a small compensation for moving expenses." COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER MOORE, FOR APPROVAL OF ITEM B AS AMENDED. MOTION CARRIED UNANIMOUSLY. The agenda item approved is as follows: (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF OCTOBER 24, 2006 Edmonds City Council Approved Minutes November 6, 2006 Page 1 residential I Item E: Proposed Ordinance Amending Residential Parking Permits Parking Permits Councilmember Wambolt referred to Section 8.52.010 that prohibits parking for more than 72 hours, pointing out that although this was desirable, it could not be accomplished as downtown residents simply moved their cars 1 -2 car lengths. He preferred to eliminate the 72 hour requirement. Next he referred to Section 8.52.020(D)(3) that limited a resident to three residential permits. The consequence of allowing a resident three parking permits was a resident with two onsite parking spaces could have a total of five vehicles parked downtown. He preferred to limit the total vehicles to three; for example, if a resident had two onsite parking spaces, they would be allowed only one parking permit. COUNCILMEMBER WAMBOLT MOVED, SECONDED BY COUNCILMEMBER MOORE, TO AMEND THE ORDINANCE AS HE DESCRIBED. Councilmember Plunkett commented the Council reviewed this ordinance several times. What is before the Council is a proposed minor change — to allow use of residential parking permits to park downtown between the hours of 6 p.m. and 9 a.m. Mayor Pro Tem Dawson suggested if the Council wanted to make further changes to the ordinance, the proposed changes be referred to the Downtown Parking Committee. Councilmember Wambolt agreed with the suggestion. COUNCILMEMBER WAMBOLT WITHDREW HIS MOTION WITH THE AGREEMENT OF THE SECOND. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR APPROVAL OF ITEM E AND TO SEND THE CHANGES SUGGESTED BY COUNCILMEMBER WAMBOLT BACK TO THE PARKING COMMITTEE FOR DISCUSSION. Councilmember Plunkett was opposed to the motion, commenting the Parking Committee had sufficiently reviewed the ordinance. Mayor Pro Tern Dawson asked whether the changes suggested by Councilmember Wambolt had been specifically discussed by the Parking Committee. Development Services Director Duane Bowman explained the intent of the amendment was to allow after -hours parking on 5th & Main. He acknowledged the Parking Committee had discussed the number of residential parking permits in the past as well as the problems associated with the 72 hour limit but had not been charged with forwarding a recommendation. He noted a comprehensive rewrite of the ordinance was done approximately 18 months ago and it had been tweaked twice since then. He concluded there may be some merit in the Parking Committee discussing these issues but urged the Council to approve the proposed ordinance. Councilmember Moore remarked the Parking Committee was a standing committee and because parking was a work in progress, the ordinance would be continually reviewed as circumstances changed. Councilmember Marin clarified his motion was to approve the ordinance and refer the issues raised by Councilmember Wambolt to the Parking Committee. Ord# 3606 MOTION CARRIED UNANIMOUSLY. The agenda item approved is as follows: Residential Parking Permits (E) ORDINANCE NO. 3606 AMENDING RESIDENTIAL PARKING PERMITS. Item F: Approval of Concession Agreement with Old Milltown Pizza and Proposed Ordinance Amending concession City Code Section 4.04.030, Leases of Public Right- of -Way. grcement Councilmember Wambolt asked how the $100 fee was determined. City Clerk Sandy Chase explained because the City had not charged a fee in the past, staff contacted the Port and Washington State Ferries Edmonds City Council Approved Minutes November 6, 2006 Page 2 to determine the amount they charged for similar uses. Considering the type of business and this being the first one, Mayor Haakenson determined a $100 fee was an appropriate start. She noted this was a one year contract. COUNCILMEMBER MOORE MOVED, SECONDED BY COUNCILMEMBER MARIN, FOR APPROVAL OF ITEM F. MOTION CARRIED UNANIMOUSLY. The agenda item approved is as follows: Ord# 3607 (F) APPROVAL OF CONCESSION AGREEMENT WITH OLD MILLTOWN PIZZA AND Leases Public Right of ORDINANCE NO. 3607 AMENDING CITY CODE SECTION 4.04.030, LEASES OF Way PUBLIC RIGHT -OF -WAY. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER MOORE, TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL Approve Claim (C) APPROVAL OF CLAIM CHECKS #91751 THROUGH #91884 FOR OCTOBER 26, 2006, Checks IN THE AMOUNT OF $864,978.99, AND #91885 THROUGH #92057 FOR NOVEMBER 2, 2006, IN THE AMOUNT OF $415,815.41.. APPROVAL OF PAYROLL DIRECT DEPOSITS AND CHECKS #44007 THROUGH #44061 IN THE AMOUNT OF $770,212.78 FOR THE PERIOD OCTOBER 16 THROUGH OCTOBER 31, 2006. Claim for Damages (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM BARBARA HINTZEN (AMOUNT UNDETERMINED). City Attorney 3. CITY ATTORNEY ANNUAL REPORT nnual Report City Attorney Scott Snyder described how the City's legal budget had been spent year -to -date. He explained in a City such as Edmonds that was nearing build -out and construction was occurring via infill development where the most difficult lots were being developed and /or redeveloped, 29.6% of the legal budget or $69,200 was expended on Planning. He commented that was unlikely to change and likely would increase, particularly depending on the outcome of I -933. He noted this trend was likely to continue due to the strong, involved citizenry who are concerned with changes in quality of life, limits on citizens' ability to have input into the process due to Regulatory Reform and Growth Management that focused growth in existing communities. He pointed out year -to -date the City had spent $1.2,000 on LUPA litigation and $33,000 on code enforcement; the City recovered $16,000 of the $33,000. The City spent $37,000 on day -to -day legal advice related to planning. Mr. Snyder explained the City spent 21.5% or $49,600 of its legal budget on the physical plant including advising engineering ($6,700), property acquisition /damage to public property ($10,000), lawsuit to abandon cemetery lots and ownership revert to the City for resale ($4,000), Public Works ($4,000), day - to -day advice to Parks ($5,000), acquiring interest in the interurban trail ($4,300), and utilities — streets, landslides, sewer and water ($16,500). He advised approximately $33,400 was spent advising the Mayor, Finance Department, City Clerk and approximately $35,000 advising the City Council, drafting ordinances and attending Council meetings. He planned in the upcoming year to look for ways to recover negotiation costs and attorney fees in code enforcement cases. He reviewed legal expenditures with regard to personnel - $4,800 for litigation and $12,500 for labor, primarily for police and fire. He noted the biggest success this year was a decision by the Thurston County Superior Court upholding an arbitration award in the City's favor involving an unfair labor practice charge by the Police unit with regard to insurance. He noted the $12,500 for labor included approximately $5,000 related to this decision which would save the City approximately $150,000 - Edmonds City Council Approved Minutes November 6, 2006 Page 3 $200,000 over ten years. Legal expenses related to personnel also included $2,800 for accommodation and $10,200 for day -to -day advice. He pointed out accommodation claims had increased in recent years and would continue to increase as more employees in strenuous occupations such as Public Safety and Public Works worked later in their careers to preserve health benefits. Mr. Snyder reviewed legal expenditures related to Public Safety ($12,100 for Police and $4,000 for Fire) for advising the departments on a day -to -day basis. Expenditures for police and fire were a small portion of the legal expenditure because the Council contracted for defense of liability claims with WCIA and because approximately two - thirds of the personnel legal expenditures were related to public safety. Mr. Snyder acknowledged he provided erroneous advice to the Council with regard to the remand to the ADB and what a public hearing could consist of. In the future, he planned to be more careful about providing advice which may result in continuing a hearing to allow him to conduct further research. He noted this would affect the Council in quasi judicial matters as it would prevent the Council from talking with the parties until the matter had been concluded. With regard to the amount of the legal budget expended on planning issues, Mr. Snyder noted increases in the amount were due not only to an involved citizenry but also laws that increasingly favored development and density. He referred to a citizen's comments about the impact of PRDs on neighborhoods including the removal of trees. He pointed out the problem from a legal prospective was the trees belonged to the property owner. He noted the challenge in his job — informing the Council and enforcing the City's decisions — was that it was frequently in opposition to individuals' perception of what the community should /could be like. Councilmember Moore asked Mr. Snyder to expand on accommodations. Mr. Snyder commented the law enforcement and firefighters pension LEOFFI strongly favored retirement of officers for an on-the-job injury — full salary tax free. As this was a very generous pension system, the legislature moved to the LEOFF2 and LEOFF3 system which were less advantageous public pension systems; LEOFF2 is the equivalent of Worker's Compensation. As a result, officers were not retiring at the same rate and like many older Americans, more officers were working later in their careers to preserve health benefits. As employees with strenuous jobs worked later in their careers, more accommodations for disabilities would be necessary. When the Americans with Disabilities Act (ADA) was passed, the assumption was accommodations would be for employees in wheelchairs, with vision impairments, etc. The reality was under ADA and Washington law against discrimination, the majority of accommodations were for bad backs and other transient disabilities. He noted accommodations also required assessing employees via fit- for -duty evaluations. He noted statistically 80% of all Americans would be disabled under one of the State or federal statutes at some time in their lifetime. Councilmember Moore inquired about the legal component of fit- for -duty evaluations. Mr. Snyder answered primarily assisting with negotiations with the union. Fit - for -duty evaluations were conducted by an independent physician or psychiatrist. Councilmember Moore commented the increasing number of accommodations would be reflected in the legal budget as well as the City's budget as it became necessary to fill in for disabled employees. Mr. Snyder commented the Washington State pension plan was one of the best funded in the United States; two- thirds of the State's employees would be eligible for retirement in the next ten years. He noted although wages were the majority of employment costs, 30% or more were benefits, pension, and payroll taxes. Municipal 4. 2006 ANNUAL REPORT - MUNICIPAL COURT JUDGE Court Judge [Annual Report Municipal Court Judge Doug Fair introduced Court Administrator Joan Ferebee and commended her for her invaluable assistance. He displayed a comparison of filings through September 2007 with the past Edmonds City Council Approved Minutes November 6, 2006 Page 4 two years that demonstrated filings this year had already exceeded past years. He pointed out the rate of traffic filings had decreased in recent months because both motorcycle officers were on disability leave. Judge Fair displayed a comparison of the different types of infractions — traffic, other (nuisance and animal control), parking, criminal traffic (DUI, driving while license suspended, reckless, no valid operator license), and criminal non - traffic (minor in possession, theft, minor drug possession). He pointed out the increase in parking tickets, DUI and traffic infractions. He attributed the increase in parking tickets to the Parking Enforcement Officer, the increase in criminal traffic to reenactment of the statute found unconstitutional, and the substantial increase in DUIs to the Police Department's allocation of time and resources to DUI arrests. Judge Fair explained the result of increased filings was increased revenue. He anticipated this year's gross revenues would exceed last year's gross revenues. Unfortunately the State receives a portion of this revenue. He advised the revenue projections for 2006 were conservative; revenue to date was 92% of projected and he anticipated the yearend would be 10 -15% over projections. He anticipated the Court's expenditures would exceed revenues by 1.2 -3.7 %, primarily due to interpreter fees which were State mandated and electronic home monitoring (EHM) systems. He commented on the importance of providing an interpreter for anyone unable to understand the language. With regard to EHM, he explained the equipment rental was $5.75 /day and was offered on a sliding scale of $5.75 - $50 /day to defendants which resulted in a profit, anticipated to be $1$,000- $19,000 this year. He pointed out savings via the use of EHM as defendants on EHM were not incurring the $57 /day jail cost. He estimated the savings in jail costs to be $123,000 year -to -date and $150,000 at yearend. He advised community service was also offered as an option to jail for minor offenses. Year -to -date, community service has saved approximately 300 days of jail time, a savings of $17,100, anticipated to be $20,000 by yearend. He summarized the EHM savings, profits, and community service savings totaled $200,000 in jail costs by yearend. Next, Judge Fair reviewed passport revenue, advising revenues had decreased this year over last year. He found this a valuable service, pointing out issuance of passports was cyclical. He anticipated if passports were required for travel between the U.S. and Canada, the issuance of passports would increase. He commented on the importance of staff development, noting the audit provided objective evidence of the value of the training. He recalled shortly after he took office, Councilmember Dawson suggested an independent audit of the court to provide a baseline as well as the circumstances under which he was appointed. The audit was completed in April with exceptional results and he recognized his staff for their efforts. He quoted from the audit reports final observation, "In all aspects of court administration, the Edmonds Municipal court is well organized, managed and appropriately staffed. Especially exemplary is the care that has been taken in the handling of funds which can be a problem area for courts. Judge Fair, Court Administrator Ferebee and the court staff are to be complimented for a well organized operation that conducts business in an appropriately cordial manner." Councilmember Moore asked what language interpreters were used for most. Judge Fair answered Spanish followed by Korean. She asked whether there were volunteer interpreters. Judge Fair responded interpreters must be court certified/qualified as interpretation simultaneous with speech was required. Councilmember Moore commented EHM technology was rapidly changing and asked whether the equipment the City used was up -to -date. Judge Fair responded yes, alcohol sensor monitoring was used when appropriate. He advised the City did not use GPS tracking. Councilmember Moore asked whether DUIs were primarily for alcohol or drugs. Judge Fair responded alcohol. Councilmember Moore asked about the effectiveness of community service. Judge Fair commented using the City's Parks & Recreation did not work out well as often the defendant did not show up, etc. He explained defendants Edmonds City Council Approved Minutes November 6, 2006 Page 5 were assigned a timeframe within which to serve a certain number of community service hours; if they did not complete the community service within that timeframe, they must report to jail. Councilmember Moore expressed support for community service but wanted to ensure the person was actually working. Mayor Pro Tem Dawson explained each year the Bench, Bar Association and various legal entities presented a joint priority for the legislature with regard to how the State could better fund the judicial system. She noted Washington's judicial system was one of most poorly funded by the state and cities and counties were required to provide additional funding. The priority that Justice in Jeopardy plans to present to the State legislature is additional State funding for interpreters. She encouraged the public to contact their legislature to urge them to support that proposal. Mayor Pro Tem Dawson thanked Judge Fair and the court staff for their efforts, commenting she had heard good things about the court. Refurbishment 5, of Old Milltown APPROVAL OF FINDINGS OF FACT REGARDING THE CLOSED RECORD REVIEW HELD ON 10 /1.7/06 - APPEAL BY ELISABETH LARMAN ON THE ARCHITECTURAL DESIGN BOARD APPROVAL OF THE REFURBISHMENT OF OLD MILLTOWN, LOCATED AT 201. 5TH AVENUE SOUTH Mayor Pro Tem Dawson advised Mayor Haakenson had recused himself from any participation in this matter to allow him to negotiate on behalf of the City with the public and the developer. City Attorney Scott Snyder recalled when the Council held the closed record review, he advised that a second public hearing could be held. Upon further research, he confirmed the City could only have one open record hearing and one closed record hearing and any attempt to present new evidence or add parties of record at another hearing could be a violation. He advised the ADB had tentatively scheduled this for their December 6 meeting; for the ADB to consider it sooner would require a special meeting. If that date was acceptable to the Council, the first date for Council consideration would be December 19. As this was a quasi judicial matter, Mayor Pro Tem Dawson asked whether any Councilmember had any conflicts or ex parte communication to disclose. Councilmember Orvis disclosed that Roger Hertrich had left him a message advising him of what Mr. Snyder just explained. Councilmember Wambolt advised he also received a telephone call from Mr. Hertrich; he did not discuss the substance of the matter, only the process. Councilmember Plunkett advised he also had a conversation with Mr. Hertrich regarding the process but they did not discuss the substance of the matter. Mayor Pro Tem Dawson disclosed she received a similar message from Mr. Hertrich in which he commented on the process. The day following the hearing, Mayor Haakenson made a passing comment referencing information in the record and a meeting he set up; they did not discuss it further because the matter had not been completed. She advised neither contact would affect her ability to proceed in the matter. She asked the Councilmembers whether their contact with Mr. Hertrich would adversely affect their ability to proceed. Councilmembers Orvis, Wambolt and Plunkett answered no. Mayor Pro Tem Dawson asked whether the parties of record had any challenges to the participation of these Councilmembers. There were none voiced. Councilmember Plunkett asked for clarification regarding Mayor Pro Tem Dawson's comment that Mayor Haakenson was negotiating on this matter. Mayor Pro Tem Dawson answered she was not certain who Mayor Haakenson was talking with as she had been very careful to avoiding talking to him about it. She explained negotiating may not be the appropriate word — Mayor Haakenson was responding to Edmonds City Council Approved Minutes November 6, 2006 Page 6 inquiries from the public and the developer and directing staff, therefore, Mr. Snyder advised he should not participate in the quasi judicial proceeding. Mr. Snyder explained one of the Mayor's responsibilities was the day -to -day administration and direction of employees; questions were posed to staff from the developer and interested citizens and he needed to be able to respond to both. He noted it was rare that the Mayor could vote on a decision as most were made via ordinance, this was an instance when he could be required to vote. His advice was if Mayor Haakenson discussed this matter outside the record, he should recuse himself from participation. He summarized the goal was to maintain very clear separation between the Mayor's discussions and the Council's action. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO ADOPT THE PROPOSED FINDINGS OF FACT WITH THE INSERTION OF THE DECEMBER 19, 2006 DATE. Councilmember Moore commented she preferred not to refer the matter to the ADB; however, since it had been, she recommended the ADB hold a special meeting. She would vote against the proposed motion but would vote in favor of motion that required a special ADB meeting. Development Services Director Duane Bowman advised a special meeting was suggested to the ADB and they preferred to schedule it on their December 6 agenda. Mr. Snyder commented the ADB had only five members; they may be unable to get a quorum on another date. Mayor Pro Tem Dawson commented the Council could have a special meeting following Council committee meetings on December 12. Mayor Pro Tem Dawson pointed out the wording in the findings was "on or before," which would allow the ADB to hold a meeting sooner than December 6 if possible. MOTION CARRIED UNANIMOUSLY. Sanitary Sewer 6. PUBLIC HEARING REGARDING THE SANITARY SEWER COMPREHENSIVE PLAN Comprehensive Plan Assistant City Engineer Don Fiene explained the Sanitary Sewer Comprehensive Plan was a requirement of GMA. Goals and objectives included identifying problems for the system based on feedback from the Sewer Division, hydraulic analysis, lift station run time information and flow meter information; ensuring the City was in compliance with Federal & State laws; and identifying and prioritizing projects and other actions to meet these objectives. Mr. Fiene displayed a map of the existing service area, explaining most of the City limits was served by the City of Edmonds sewer utility although there were areas in the south served by Olympic View. He explained the current system consisted of approximately 168 miles of sewer pipe, approximately 3,200 manholes, over 9,200 service connections, and 14 lift stations. Over half of the pipe was constructed between 1959 and 1968 and over 85% of the pipe was concrete. The system had sufficient capacity for treatment at the Edmonds and Lynnwood treatment facilities. He explained analysis identified problems with inflow and infiltration associated with storm and groundwater entering the sewer system which can cause sewer backups and raw sewage overflows. High flow rates observed during January 2006 storms raised concern warranting flow monitoring /smoke testing, small works projects to connect inflow and infiltration sources to the storm system, and embarking on the CIP Rehabilitation Program. Mr. Fiene explained the consultant analyzed operations and maintenance. He displayed a chart identifying sewer maintenance worker utilization. He reviewed problem areas and recommendations, advising the problems were prioritized by Engineering and Public Works staff. Projects include rehabilitation or replacement of all sewer lift stations, replacement of many sewer mains with bellies and poor grade, inflow and infiltration study and projects, and the Cured in Place Pipe Restoration Program. Edmonds City Council Approved Minutes November 6, 2006 Page 7 Mr. Fiene displayed a map identifying the location of problem areas throughout the City that were analyzed and prioritized. He displayed a sample CIP project description. Next, he reviewed the financial program analysis that found sewer rates had increased only 6% between January 2002 and January 2006, well below inflation and that rates had been supplemented by connection charges since January, 2001 in the amount of $730 per equivalent residential unit. The proposed sewer rates for 2007 -2012 would only increase a total of 10% (5% in 2008, 5% in 2009) which included funding for one additional staff — a Utilities Engineer in 2008. Mr. Fiene displayed a chart illustrating sewer utility spending 2002 -2007, noting the treatment plant debt would be retired in 2008, making funds available for a more proactive capital program while maintaining low rates. He displayed a comparison of sewer rates, noting Edmonds was near the bottom. Mr. Fiene advised the Planning Board reviewed the Comprehensive Plan and held a public hearing. The Planning Board forwarded the Plan to Council with a recommendation for approval and strongly recommended approval of the Utilities Engineer position beginning in 2008 to facilitate and accomplish Plan recommendations. He explained the position would be funded entirely by utility rates, however, it was not currently included in the 2007 -2008 budget. Mr. Fiene recommended the City Council approve the Comprehensive Plan and authorize the City Attorney to prepare an ordinance for amendment to the Utilities Element of the Comprehensive Plan in conjunction with the annual Comprehensive Plan update. Councilmember Plunkett inquired about the rate consultant. Mr. Fiene answered the City hired FCS as the rate consultant. Councilmember Plunkett asked whether the Utilities Engineer position would be discussed during the budget presentations. Mr. Fiene advised the position was proposed in a decision package but had not been included in the budget by Mayor Haakenson. Councilmember Moore asked why the position was not included in the 2007 -2008 if it was funded by utility taxes. Administrative Services Director Dan Clements answered it would require an increase in utility rates and it was preferred to keep rates as low as possible as well as limit the number of capital. projects. He noted the only proposed increase was a 3% increase in water in 2007 and 3% in 2008. The primary reason for not including the Utilities Engineer position was additional engineering could accomplish more capital projects which would increase rates. Mayor Pro Tem Dawson asked whether there was a conflict with adoption of the Plan if the Council did not intend to include the Utilities Engineer position in the 2008 budget. Mr. Fiene commented a consultant could be used instead of an in -house engineer although that was likely to be more expensive. Another advantage of an in -house engineer was the Cured in Place Pipe Restoration Program that would begin in 2008 and would improve older pipes at a lower cost than trenching. Mayor Pro Tem Dawson asked whether adoption of the Sanitary Sewer Comprehensive Plan would require hiring a Utilities Engineer in 2008. Mr. Fiene answered not necessarily; those tasks could be done by a consultant. Councilmember Marin asked whether neighborhoods were notified before inflow and infiltration smoke tests were conducted. Mr. Fiene answered yes. Councilmember Marin suggested by notifying residents in advance of the test it would allow them to fix any problems and avoid the stiff fines associated with a violation. Public Works Director Noel Miller advised a fine was rarely levied; homeowners were allowed a reasonable amount of time to fix any defects that were identified. Mayor Pro Tem Dawson opened the public hearing. There were no members of the public present who wished to provide testimony and Mayor Pro Tem Dawson closed the public hearing. Edmonds City Council Approved Minutes November 6, 2006 Page 8 COUNCILMEMBER MOORE MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, THAT THE COUNCIL APPROVE THE SANITARY SEWER COMPREHENSIVE PLAN AND AUTHORIZE THE CITY ATTORNEY TO PREPARE AN ORDINANCE FOR AN AMENDMENT TO THE UTILITIES ELEMENT OF THE COMPREHENSIVE PLAN, IN CONJUNCTION WITH THE ANNUAL COMPREHENSIVE PLAN UPDATE. Councilmember Marin spoke in favor of the motion, suggesting the Council consider the Utilities Engineer position in the future. He referred to a section in the Plan that identified deficiencies in the system, noting the City's system was old and built when there were few safeguards. Councilmember Moore agreed with Councilmember Marin's suggestion, noting the Utilities Engineer position was strongly recommended by the Planning Board. Councilmember Wambolt suggested asking Mayor Haakenson why the decision package was not included in the 2007 -08 budget. He commended Mr. Fiene on the Sanitary Sewer Comprehensive Plan. Councilmember Plunkett also commended Mr. Fiene on the Sanitary Sewer Comprehensive Plan. He recalled in 1998/99, the rate structure did not provide sufficient funds for maintenance of the sewer system and staff proposed the idea of a rate structure study. The result was an increase in rates although the rates remained below the State average and a system that could handle the current and additional flow, and a maintenance /repair schedule. Mayor Pro Tern Dawson requested further information regarding the Utilities Engineer position be provided at the November 14 budget workshop. MOTION CARRIED UNANIMOUSLY. 2007-08 Budge and Revenue 7. PUBLIC HEARING ON THE 2007 -08 BUDGET AND REVENUE SOURCES. and Revenue Sources Administrative Services Director Dan Clements explained the purpose of the public hearing was to receive public comment on the proposed budget and provide infonnation about revenues and potential property tax increases. He noted the Council packet contained responses to questions raised by the Council. Mr. Clements advised the 2007 budget totals $70.5 million, less than a 1% increase over the 2006 budget. He explained there was a $2.5 million increase in operations in the General and Utility Funds which was offset by decreases in several capital funds. The 2008 budget totals $65.9 million, a 6.5% decrease over the 2007 budget. The 2007 General Fund totals $31.9 million, a 4.8% increase over the 2007 budget due to State pension rate increases, a full year of the Street Crime Unit and court and incarceration charges. The 2008 General Fund totals $33.2 million, a 4% increase over 2007. The preliminary 2007 -08 budget recommends a 1% statutory increase in property taxes, and recapture of 1.6% remaining banked capacity. The 2007 budget includes a .25% utility rate increase and a 3% water rate increase in 2007 and 2008 to fund the capital replacement program. The proposed budget recommends an Emergency Medical Services Levy election in 2007 with funding in place for 2008. Next he reviewed property tax distribution — 15% to the City and 3.7% to EMS, the remainder is distributed to schools (64 %); Port, Library and Hospital (6.9 %) and the County (9.8 %). He summarized there were no staffing increases in the 2007 -2008 budget other than the transition of one Police Sergeant from grant funding to General Fund. The 2007 -2008 budget includes miscellaneous Edmonds City Council Approved Minutes November 6, 2006 Page 9 equipment replacement and development of a utility billing e- payment system. A plan will be developed in 2007 for a $500,000 reduction in the General Fund for 2009. He displayed a General Fund Projection Model without the utility tax increase and the 2008 EMS levy. He reviewed the 2007 -08 budget adoption schedule — Council budget deliberations on November 14, second budget public hearing on November 21 with possible budget adoption. Additional dates for further budget deliberation and adoption included November 28 and December 5, 12, and 19. Councilmember Wambolt requested for the November 14 meeting further information regarding the EMS levy. He noted in 2006 the cost was estimated to be $5.3 million; $2.3 million from the levy and $3 million from the General Fund. He suggested a standalone budget for EMS in view of the significant EMS levy that was proposed, a more than 50% increase in the levy. Mr. Clements recalled one of the questions was whether this was an EMS levy for EMS purposes or to assist with funding of other services. Staff would respond to that at the November 14 meeting. Councilmember Moore referred to the General Fund Projection Model and suggested a comparison between this year and last year and a long term projection to assist the Council with developing a vision for funding the City through the next decade. Mr. Clements commented he could lengthen the planning horizon but a way to fund operations for the next decade had not been identified. Councilmember Moore commented on the importance of sales tax to avoid increasing property taxes. Mr. Clements offered to provide options for stabilizing the budget over the next decade. Mayor Pro Tern Dawson opened the public hearing. Roger Hertrich, Edmonds, commented a 3% increase in water rates was a burden for residents living on a fixed income. He requested the 3% increase be supported by costs. Next, in regard to the EMS levy, he questioned whether there were ways to reduce costs. He suggested consideration be given to changing the policy of two vehicles on each call by having one responding vehicle and another for back -up. He recalled the previous fire rescue boat became a financial burden, particularly for overtime. He questioned whether the City received grant funds for the operation of the boat. He suggested the fire rescue boat was a regional service that should be paid for with regional funds. Don Kreiman, Edmonds, suggested developing Firdale Village and Five Corners would result in additional tax revenue. He pointed out the Council's land use planning had consequences including insufficient multi family housing. If the Council did not allow buildings to exceed 25 -feet, development would not occur. He did not support increased property taxes. He encouraged the City to provide incentives so that developers would build apartments on transit lines. Hearing no further public comment, Mayor Pro Tem. Dawson closed the public hearing. Councilmember Moore asked staff to comment on the funding for operation of the fire rescue boat. Fire Chief Tom Tomberg advised the boat was acquired via a $200,000 State homeland security grant. The boat was acquired due to the presence of the marina, the Port and the extensive waterfront area. The estimated annual maintenance is $2,136. The boat is cross - staffed like any other vehicle and used as a tool like any other apparatus similar to the aid unit, ladder truck or engine. He advised no overtime had been expended for the use of the fire rescue boat. Councilmember Orvis asked whether the large format copier would replace an existing printer. Development Services Director Duane Bowman explained the existing copier required a great deal of maintenance and was being phased out. The existing copier was used to copy large plans; the City was required to keep plans for the life of a building plus 10 years. He advised the plans could be converted to Edmonds City Council Approved Minutes November 6, 2006 Page 10 PFD files but a large format copier was needed to copy plans requested by the public or copy drawings provided by developers. Councilmember Orvis asked whether there were advantages to requiring plans to be submitted in an electronic format. Mr. Bowman answered smaller developers did not have access to that technology. He noted the ability to work with electronic plans would require additional equipment. Councilmember Wambolt requested a comparison of EMS levies for communities similar to Edmonds. Councilmember Moore asked staff to elaborate on the declining levy rate as assessments increased. Administrative Services Director Dan. Clements explained in states like California, if the assessed valuation doubled, the levy rate doubled. In Washington, due to the 1% cap, if the assessed valuation doubled, the levy rate was cut in half plus 1 %. Therefore, as assessments increased, the levy rate declined. He noted that was the issue with EMS, as the levy rate decreased, the EMS levy generated less revenue. He noted in Washington, the amount of money a city, county or taxing jurisdiction was authorized to collect was divided by the assessed valuation to determine the levy rate. Mayor Pro Tern Dawson advised the Council would be discussing the budget on November 14 following Council committee meetings. She requested staff provide information regarding what the proposed utility tax increase would fund. She requested Council submit any additional questions by Thursday so that a determination could be made regarding what staff members needed to be present at the November 14 Council meeting. Building Heigh 8. PUBLIC HEARING ON THE EXTENSION OF ORDINANCE NO. 3595 — A ZONING Moratorium MORATORIUM ON THE ACCEPTANCE OF ARCHITECTURAL DESIGN BOARD APPLICATIONS OR BUILDING PERMIT APPLICATIONS, NOT OTHERWISE VESTED PURSUANT TO STATE LAW PRIOR TO DATE OF ENACTMENT OF THIS ORDINANCE WHICH SEEK TO UTILIZE MODULATED DESIGN IN ORDER TO OBTAIN A BUILDING HEIGHT IN EXCESS OF THE TWENTY -FIVE FOOT HEIGHT LIMITATION ESTABLISHED BY ECDC 15.40.020(A)(2). (ORDINANCE NO. 3595 EXPIRES 11/26/06.) Development Services Director Duane Bowman advised this was an ongoing extension of the zoning moratorium as the Council and Planning Board worked on the downtown zoning regulations and implementation. The Council has begun but has not completed their deliberations. The ordinance would expire if not extended. Staff recommended extending the moratorium to allow the Council to complete their deliberations on the downtown zoning regulations. He commented Agenda Item 8 was a similar extension. On behalf of the Council, Mayor Pro Tem Dawson apologized this extension was necessary. She pointed out the quasi judicial matter that had delayed the Council's deliberations. She was hopeful the Council could complete their deliberations as soon as possible. Mayor Pro Tem Dawson opened the public hearing. She cautioned speakers not to speak about the pending quasi judicial matter. Don Kreiman, Edmonds, asked how many moratorium the City had in place compared to most other cities. He recalled Lynnwood was very concerned with having one moratorium. He pointed out time was money for business people and moratoriums cost businesses money. He summarized the Council was responsible for the moratorium that was binding everything up. Gary Krohn, Edmonds, acknowledged the Council had few options other than to extend the moratorium to allow the Council to complete its deliberations. He noted there carne a time when the Council needed to ask whether more time, more information, more bearings, or more analysis would help them reach a Edmonds City Council Approved Minutes November 6, 2006 Page 11 better decision. Although he understood the difficulty of the building height issue and the tendency to delay a final decision, at some point the difficult decisions must be made. He noted one of the goals of the building code was predictability and stability; indecision often led to unpredictability and property owners who were unsure of what actions could be taken, took no action. He suggested in this region at this time, with no action particularly in the downtown core, the City was being left behind. He urged the Council to make this the last extension and to deal with the issue. He noted the next Agenda Item was a similar situation. Hearing no further public comment, Mayor Pro Tem. Dawson closed the public hearing. Councilmember Plunkett referred to Mr. Kreiman's comment that the Council's indecision was binding everything up and asked how many applications had been submitted. Mr. Bowman answered the City could not accept applications affected by the moratorium. Councilmember Plunkett asked how many people had inquired about submitting an application. Mr. Bowman estimated only one. Ord# 3608 COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO Extend ADOPT THE ORDINANCE NO. 3608 EXTENDING ORDINANCE NO. 3595, A ZONING Building Height MORATORIUM ON THE ACCEPTANCE OF ARCHITECTURAL DESIGN BOARD Moratorium APPLICATIONS OR BUILDING PERMIT APPLICATIONS, NOT OTHERWISE VESTED PURSUANT TO STATE LAW PRIOR TO DATE OF ENACTMENT OF THIS ORDINANCE WHICH SEEK TO UTILIZE MODULATED DESIGN IN ORDER TO OBTAIN A BUILDING HEIGHT IN EXCESS OF THE TWENTY -FIVVE FOOT HIEHT LIMITATION ESTABLISHED BY ECDC 15.40.020(A)(2). Council President Pro Tem Olson commented although she would support the motion, she was frustrated with the repeated extensions of this moratorium. Councilmember Moore agreed. MOTION CARRIED UNANIMOUSLY. view 9. PUBLIC HEARING ON THE EXTENSION OF ORDINANCE NO. 3596 — A ZONING Moratorium MORATORIUM ON THE APPLICATION OF ECDC 20.10.070(C)(3) RELATING TO THE IMPOSITION OF SPECIAL HEIGHT LIMITS TO PROTECT VIEWS. (ORDINANCE NO. 3596 EXPIRES 11/26/06.) Mayor Pro Tern Dawson noted Mr. Bowman had referenced the extension of this moratorium in his presentation on the previous agenda item. City Attorney Scott Snyder pointed out the proposed ordinance extending this moratorium and the moratorium in the previous agenda item indicated the Council had received a recommendation from the Planning Board. Because the Council was still in deliberation on a quasi judicial matter in the downtown area, it was difficult for the Council to have a frank discussion on a legislative matter without appearing to be in deliberation on the quasi judicial matter. Mayor Pro Tern Dawson opened the public hearing. There were no members of the public present who wished to provide testimony and Mayor Pro Tern Dawson closed the public hearing. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, TO Ord# Extend View ADOPT ORDINANCE NO. 3609 EXTENDING ORDINANCE NO. 3596 A ZONING Moratorium MORATORIUM, ON THE APPLICATION OF ECDC 20.10.070(C)(3) RELATING TO THE IMPOSITION OF SPECIAL HEIGHT LIMTIS TO PROTECT VIEWS. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes November 6, 2006 Page 12 CG and CG2 10. PUBLIC HEARING ON RECOMMENDATIONS BY THE PLANNING BOARD FOR Zones AMENDMENTS TO CHAPTER 16.60 OF THE EDMONDS COMMUNITY DEVELOPMENT CODE CONCERNING THE GENERAL COMMERCIAL (CG AND CG2) ZONES. Planning Manager Rob Chave advised the Hwy. 99 Task Force who considered regulations with regard to Hwy. 99, recommended amending the Comprehensive Plan which was done in 2005. In considering zoning regulations to implement the Comprehensive Plan, the Planning Board proposed amendment to the General Commercial CG and CG2 zones. He explained currently the CG and CG2 zones had a base height limit; the height of a building on a property in the high rise node could exceed the base height limit an unlimited amount with a Conditional Use Permit (CUP). After reviewing the Hwy. 99 Task Force's recommendations, the Planning Board recommended, 1) increasing the base height limits in the CG zone from 35 feet to 60 feet and from 45 feet to 75 feet in the CG2 zone, 2) removing the requirement to obtain a CUP for higher building heights, 3) providing greater flexibility in the arrangement of uses for large - scale mixed use developments (2+ acres), and 4) including specific site design standards for development in the CG zone. Councilmember Orvis asked how this applied to Harbor Square. Mr. Chave answered development of Harbor Square was governed by the contract rezone; changes to the CG and CG2 zone would not impact that property. Councilmember Orvis requested a copy of the Harbor Square contract rezone. Council President Pro Tern Olson asked the difference between CG and CG2 zones. Mr. Chave responded primarily location, the uses were essentially the same. The CG2 was the northern portion and CG was the southern portion of Hwy. 99. Councilmember Plunkett asked whether having the ADB at the beginning of the process would include a public hearing. Mr. Chave the ADB would hold the open record public hearing and focus on the checklist and issues to be addressed. As a result, the public hearing and the appeal would be very early in the process. Councilmember Plunkett asked whether a CUP included a public hearing. Mr. Chave answered yes if it required Hearing Examiner review. He explained staff could issue CUPS, if the Code was not specific, it was reviewed by the Hearing Examiner. Councilmember Plunkett referred to the letter regarding 15 -foot setbacks associated with an automobile dealership and asked whether that could be addressed separately. Mr. Chave agreed. Councilmember Plunkett referred to Item D2 on page 8 of the Planning Board's recommendation, "In buildings with footprints over 10,000 square feet, attention needs to be given to modulation, scale and massing..." asking whether in a building under 10,000 square feet, attention did not need to be given to modulation, scale and massing. Mr. Chave advised that was correct for buildings on Hwy. 99. Councilmember Plunkett asked for an example of a 10,000 square foot building. Mr. Chave responded it was approximately 100 x 100 and Mr. Snyder advised it was approximately 1/4 acre. Councilmember Plunkett observed a building under 60 feet would not require ADB pre - planning and a building over 60 feet would not require a CUP. Mr. Chave agreed, commenting the building would need to meet the same standards but it would be reviewed by staff. He explained a building would need to be in a high rise node to exceed 60 feet and would require a ADB pre - planning meeting. Councilmember Wambolt referred to the letter from the car dealership indicating the 1.5 foot setback would be a hardship and asked whether that issue had been considered by the Planning Board. Mr. Chave answered no, it was an existing code provision. He acknowledged the points raised in the car dealership's letter were worth considering but recommended consideration be given to what would be provided in Edmonds City Council Approved Minutes November 6, 2006 Page 13 exchange for a reduction in the setback. He noted the portion of Hwy. 99 within Edmonds had better design, landscaping, etc. Councilmember Wambolt referred to Item D2 on page 8 of the Planning Board's recommendation that referred to modulation, recalling the City was abandoning that term. Councilmember Moore agreed with Councilmember Wambolt's comment regarding the use of the term modulation. She asked what process would be used to address the setback issue. Mr. Chave answered the ordinance could be referred back to the Planning Board for a quick look at that issue. Mr. Snyder explained the Council could make minor changes but could not include a new issue that had not been considered by the Planning Board as GMA required a public process. Councilmember Moore recommended referring that issue back to the Planning Board, recognizing car dealerships provided a substantial amount of sales tax to the City. Mr. Chave suggested scheduling it on the agenda of the first Planning Board meeting in December. Councilmember Marin suggested Magic Toyota make a presentation to the Hwy. 99 Task Force at their meeting next week and the Task Force forward a recommendation to the Planning Board. Councilmember Orvis referred to Jim. Underhill's reference to a minority report that was not submitted. Mr. Chave recalled his concern was with the BR zoning around the hospital. Council President Pro Tem Olson commented on the importance of working with the car dealerships due to the amount of sales tax revenue they generated. Councilmember Plunkett agreed with Councilmember Marin's suggestion that Magic Toyota make a presentation to the Hwy. 99 Task Force. Mr. Chave suggested the matter also be scheduled on the Planning Board's agenda. Councilmember Wambolt commented the purpose of the Hwy. 99 Task Force was to raise issues such as the 15 foot setback; as the issue had already been identified, he questioned the need for the Hwy. 99 Task Force to be involved. Mayor Pro Tern Dawson opened the public hearing, advising the Council received a letter from Peter Chung, General Manager, Magic Toyota, requesting an exemption from the 15 foot setback for car dealerships. Peter Chung, General Manager, Magic Toyota, Edmonds, advised due to their success as well as agreements made with the manufacturer regarding required space, they needed to expand their operation. He explained they had a deficiency of approximately 107,000 square feet at their current location. Upon learning they purchased property a block north in Lynnwood, Edmonds staff asked whether their current site could be redeveloped. As a result they purchased additional property to the south to accommodate their expansion. In conducting their due diligence, they discovered the 15 foot setback requirement. He pointed out the 15 -foot setback represented approximately 80 parking spaces which represented a loss of approximately $600,000 as well as reduced the amount of land available for expansion. He displayed several photographs illustrating how a landscaped 15 -foot setback obscured the visibility of vehicles behind it, photographs of dealerships with a 2 -3 foot setback, and a photograph illustrating how the 15- foot setback would impact operations on their site. He requested they be allowed to retain their existing 3 -foot setback. Roger Hertrich, Edmonds, suggested this would be an appropriate application of a CUP. He disagreed with removing the requirement for a CUP for buildings on Hwy. 99, noting the CUP process provided Edmonds City Council Approved Minutes November 6, 2006 Page 14 opportunity for public input, it did not waste time and did not slow the process. He also did not agree with removing the ADB pre - planning review. Don Kreiman, Edmonds, recommended the Council approve the Planning Board's recommendations unless it required a 15 -foot setback for car dealerships which he recommended be considered by the Planning Board. He noted this section of Hwy. 99 did not have any pedestrian traffic and was appropriate for commercial and multi family development. Pat Ikegami, Doug's Lynnwood Mazda, advised they were required to build a building for their Hummer franchise and the 15 -foot setback would severely limit their available space. She noted manufacturers required a certain building square footage, parking spaces, and lot size. She requested the Council reconsider the 15 -foot setback and staff review, noting an impediment to the construction process was the time for planning and review. She remarked they had less than two years to complete their building and a year in planning would make their schedule very tight. Hearing no further public comment, Mayor Pro Tem Dawson closed the public hearing. Councilmember Plunkett asked how long it took to get a permit in Edmonds for a building as large as 20,000 square feet. Mr. Chave stated ADB review could add 2 -4 months depending on the scale of the project. Although buildings below the proposed base height limit did not require ADB review, there was public notice provided for any project that exceeded the SEPA threshold. Because the SEPA threshold was fairly low, he noted most projects on Hwy. 99 would have public notice. Councilmember Plunkett noted although there was public notice, there was no public hearing. Mr. Chave explained the public could appeal the decision which triggered a public hearing with the Hearing Examiner. Councilmember Plunkett asked whether it took a year to get a building permit in Edmonds. Mr. Bowman answered it took approximately 12 weeks for a major commercial building. Mayor Pro Tem Dawson clarified because the setback was not considered by the Planning Board, it would be inappropriate for the Council to take action on that issue. Mr. Snyder agreed, advising the public had not been notified of that change. GMA required the City follow its public comment procedures which in this instance required review by the Planning Board, recommendation to the Council and another public hearing. Mayor Pro Tem Dawson asked whether taking action on the ordinance would preclude the Council from referring the setback issue to the Planning Board. Mr. Snyder answered no. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER MOORE, TO DIRECT THE CITY ATTORNEY TO PREPARE AN ORDINANCE TO IMPLEMENT THE RECOMMENDATIONS OF THE PLANNING BOARD AND THE HWY. 99 TASK FORCE. Councilmember Plunkett commented SEPA notification was inadequate, pointing out a formal appeal to the Hearing Examiner was very different than notice of a public hearing. He referred to Item E on page 1 of the Planning Board's recommendations, "encourage development that is sensitive to surrounding neighborhoods..." He objected to a building that was i/4 acre that did not need to consider massing or modulation, a building up to 60 feet that did not require ADB review, and a building over 60 feet that did not require a CUP. He explained a CUP required an applicant to demonstrate the use was consistent with the zone and that their application would not be a significant deterrent to public health, safety or welfare. He concluded the proposed ordinance violated the principle of being sensitive to the neighborhoods. If ADB review and a CUP were appropriate for other neighborhoods in the City, it was appropriate for the Lake Ballinger neighborhood. He did not support the motion. Council President Pro Tem Olson, a former member of the Hwy. 99 Task Force, commented the reason this was recommended was to encourage development on Hwy. 99 and to streamline the process for higher buildings that did not impact views. She pointed out a member of the public could appeal the Edmonds City Council Approved Minutes November 6, 2006 Page 15 SEPA decision which would result in a public hearing. She commented on the importance of increasing the City's sales tax revenue, asking if development downtown was not desirable, where would development occur. Councilmember Wambolt advised the requirements from the vehicle manufacturers that were cited by the dealerships were not an exaggeration. He supported considering the setback issue, noting the loss of a car dealership would have a significant impact on the City's revenue stream. Councilmember Plunkett supported referring the 15 -foot setback issue to the Planning Board. He agreed Hwy. 99 would an appropriate place for increased development, noting there were residents adjacent to Hwy. 99. He recalled residents of Lake Ballinger wanted the same protections the rest of the City received. Mr. Snyder referred to Item 2A on page 6 of the Planning Board recommendation, which referred to a minimum 4 -foot wide landscaping; however, page 5 had a minimum street setback of 15 feet that was required to be fully landscaped. He concluded there was an inherent conflict in the proposed ordinance; the Council could change the minimum 4 -foot wide landscaping to 15 feet to be consistent but could not reduce the 15 -foot setback as it had not been noticed. Mr. Chave disagreed, pointing out the landscape requirement on page 6 was a minimum of 4 -feet which was not inconsistent with 15 feet. He suggested staff proceed with preparing an ordinance that omits the landscaping issue and refer it back to the Planning Board. Mayor Pro Tern Dawson concluded the Council could omit the portion regarding landscaping and setbacks. Mr. Bowman agreed with Mr. Chave's assessment and recommended the Council authorize preparation of the ordinance omitting that issue and return that issue to the Planning Board for a recommendation. Councilmember Orvis supported changing the setback to make it as easy as possible to park cars on Hwy. 99, recognizing car dealerships were a major source of sales tax revenue. With regard to building heights, he was uncomfortable with allowing 60 foot building heights in the CG zone or 75 foot building heights in the CG2 zone. He did not envision buildings of that height would fit the area and the neighbors deserved the same considerations as other neighborhoods. He summarized he would not support the ordinance with those building heights. COUNCILMEMBER MARIN RESTATED HIS MOTION TO OMIT REFERENCE TO LANDSCAPING AND RETURN THAT ISSUE AND THE 15 -FOOT SETBACK TO THE PLANNING BOARD FOR RECOMMENDATION. Councilmember Wambolt expressed support for the motion. He had driven around this area and while there was residential development, it was primarily a commercial area. He supported doing whatever possible to enhance commercial development on Hwy. 99. Mayor Pro Tern Dawson remarked there was a new car dealership off I -5, recognizing competition among dealerships was stiff and time was of the essence for commercial development. She expressed support for the motion. MOTION CARRIED (5 -2), MAYOR PRO TEM DAWSON, COUNCIL PRESIDENT PRO TEM OLSON, AND COUNCILMEMBERS MOORE, WAMBOLT, AND MARIN IN FAVOR; AND COUNCILMEMBERS ORVIS AND PLUNKETT OPPOSED. 11. AUDIENCE COMMENTS Apartments i 1 June Robinson, Executive Director, Housing Consortium of Everett and Snohomish County Converted to Condominiums commended the Council for considering a requirement for relocation assistance In the event of Edmonds City Council Approved Minutes November 6, 2006 Page 16 condominium conversions. She advised Snohomish County was experiencing a high rate of condominium conversion, over 700 apartments were converted to condominiums in 2005 and she anticipated conversions would exceed that amount in 2006. She explained this often led to hardship for low income residents living in the apartments at the time of conversion. Although $500 in relocation assistance was not a lot, she recognized it was the maximum currently allowed by State law. She noted apartment conversions were a major cause of homelessness in the Puget Sound region. Hwy 99 James Claussen, Edmonds, recalled the Hwy. 99 building heights were determined in the late 1980s as a Building Heights result of perspectives ers ectives his wife , en Pla nning then the Pl Board Chair, drew for residents. He recalled the residents in Lake Ballinger were amazed the building heights were of no consequence due to the topography. council's Land I Don Kreiman, Edmonds, commented although his good manners required civility with the Council, he Use Policy disagreed with a lot of what the Council did including their land use policy. He pointed out supply and demand — if demand for a product increased and the supply stayed the same, the result was an increase in price. He noted if land prices were high enough, property owners could sell their property for condominiums. He concluded the Council's land use policy and their objection to higher building heights was impacting development. With increased demand for housing and the Council's land use policies not allowing for increased supply, the result was housing occurred in unexpected places such as wooded areas being replaced with houses selling for $750,000 - $1 million. He pointed out the population of schools in the Edmonds School District was decreasing because families could no longer afford to live in Edmonds. Neal Perry I Natalie Shippen, Edmonds, relayed the next chapter in her ferry tale, entitled "An Edmonds Kind of Terminal Idea." She noted the Unocal hillside slid when disturbed and was designated a landslide hazard area. To reach the proposed new ferry terminal, the access road would traverse the hillside for a distance of approximately 900 feet. The consultants determined the simplest way to fix the slope was to remove it via cut and fill. The excavation and fill would substantially change the slope and ground surface along portions of the access road alignment. The final EIS' comment with regard to the visual impact was the ferry access road would create a visual scar on the hillside. She objected to the cost and the concept of building a ferry terminal at an exposed, distant, deep water site as well as the destruction of Marina Park and the Unocal hillside. She advised the next chapter of the ferry tale was entitled, "The Cost: $78 Billion and Still Rising." She distributed a comparison of the $19 million cost of a breakwater in 1994 to the $31 million cost today. Building Permit Roger Hertrich, Edmonds, referred to the question about how long it took to get an application Approval Time approved in Edmonds, relaying that builders, architects and business people have told him no one wants to build in Edmonds because of the delays. He commented one year was an accurate estimate of the amount of time it took to get a project approved in Edmonds. He cited problems of a person building a single family home as well as Lund's Office Supply experienced. He commented the meetings and public hearing were not the reason for the delays; the delays were caused by the City. Builders did not complain due to their fear of reprisals. He urged Council to look into this and determine what needed to be done. Extend the Meeting MAYOR PRO TEM DAWSON MOVED, SECONDED BY COUNCILMEMBER MARIN, TO EXTEND THE MEETING FOR 20 MINUTES. MOTION CARRIED UNANIMOUSLY. Condominium 112. DISCUSSION ON PROPOSED ORDINANCE REGARDING CONDOMINIUM CONVERSIONS Conversions Development Services Director Duane Bowman recalled this issue was raised by a citizen who voiced concerns with condominium conversions. The Community Services /Development Services Committee discussed the issue at their October 17 meeting and the City Attorney advised the City could, 1) provide a warranty program, and 2) require a developer doing a condominium conversion to provide $500 to low income tenants (the maximum allowed under State law). Edmonds City Council Approved Minutes November 6, 2006 Page 17 Mr. Bowman did not support the warranty ordinance, finding that an issue that was best addressed by the buyer in the Purchase and Sale Agreement. He supported requiring a developer involved in a condominium conversion to provide $500 in relocation assistance to low income tenants. City Attorney Scott Snyder noted as Bio Park of his office indicated in his memo to the Council, a similar State Statute providing for larger compensation was struck down by the State Supreme Court, thus even requiring $500 had the potential for challenge. He noted there was a provision for more compensation under the Landlord Tenant Act; however, the City was required to match the payment. Mayor Pro Tem Dawson was aware of a number of bills that may be proposed in the upcoming legislative session including mobile home park conversions as well as a proposal to increase assistance to $2500. She noted the warranty provisions seemed to be intended for urban areas to slow the process for conversion of large buildings where tenants were required to make a quick decision with no warranty protection. Mr. Bowman noted only Seattle and Mercer Island enacted the warranty provision. Councilmember Moore commented the warranty provision did not protect low income residents as they were not the ones purchasing the unit. Mayor Pro Tem Dawson commented that unlike areas such as New York City, there were likely few people renting apartments in Edmonds who would be capable of purchasing their apartment when it was converted to a condominium. or& 3610 COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER WAMBOLT, FOR Condominium Conversions APPROVAL OF ORDINANCE NO. 3610. Councilmember Marin commented he was interested in low income housing. He recalled a document at Snohomish County Tomorrow that stated Edmonds was fortunate to have more affordable rental properties than other nearby cities because many rental properties were older and the rents were more affordable. He noted condominium conversions eliminated those affordable rental properties. Councilmember Plunkett advised the Washington State Realtors Association and the Governor in association with the Affordable Housing Advisory Board would be recommending action to the legislature and he preferred to delay any Council action pending the Legislature's action. Mayor Pro Tem Dawson commented she had been working recently on affordable housing and efforts to prevent homelessness in Snohomish County. She pointed out land prices made it infeasible to build affordable housing in South Snohomish County; therefore, it was important to maintain the existing stock of affordable housing as well as maintain a wide variety of housing types in the community. Recognizing that $500 was not a great deal of money, it would assist tenants displaced by condominium conversion and possibly prevent someone from becoming homeless. She was aware the Legislature may be taking action this session; if they did, the Council could revisit this issue in a few months. Council President Pro Tem Olson agreed although $500 was not a great deal, it was something. She referred to two apartment buildings in Edmonds that recently became low income housing. Mayor Pro Tem Dawson clarified those apartments were purchased by the Housing Authority, one of the only ways to preserve low income housing in the community. MOTION CARRIED (6 -1), COUNCILMEMBER PLUNKETT OPPOSED. 13. MAYOR PRO TEM COMMENTS Mayor Pro Tem Dawson thanked Senior Executive Council Assistant Jana Spellman for the flowers for her birthday. Edmonds City Council Approved Minutes November 6, 2006 Page 18 14. COUNCIL COMMENTS Trick or Treat Council President Pro Tern Olson wished Mayor Pro Tern Dawson a Happy Birthday. She reported she Event I took her granddaughter downtown on Halloween where the merchants did a great job distributing candy. She next reported the Friends of the Edmonds Library raised over $9,000 at their recent book sale and Friends of the Edmo „ds thanked everyone for their support. Library Councilmember Moore complimented the Council for passing the Planning Board's recommendation regarding Hwy. 99 with the caveat that the Planning Board review the setbacks and landscaping requirements. She anticipated this would assist with positive development on Hwy. 99. She suggested Quasi Judicial next year, possibly at the Council retreat, revisiting the Council's role in quasi judicial decision - making. Role ofthe She favored the Council extracting themselves from quasi judicial reviews as much as possible, Council commenting on the difficulty for Councilmembers to be unable to talk to residents. She also viewed the Council sitting as judges on the City's code as a conflict of interest. She commented the current situation was the worst case scenario — a perfect storm of quasi judicial decision - making holding up an important Council decision. Councilmember Wambolt wished Mayor Pro Tem Dawson a Happy Birthday. 15. ADJOURN With no further business, the Council meeting was adjourned at 10:15 p.m. Edmonds City Council Approved Minutes November 6, 2006 Page 19