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09/02/1986 City CouncilTHESE MINUTES SUBJECT TO SEPTEMBER 9, 1986 APPROVAL EDMONDS CITY COUNCIL MINUTES SEPTEMBER 2, 1986 The regular meeting of the Edmonds City Council was called to order at 7:00 p.m. by Mayor Larry Naughten in the Plaza Meeting Room of the Edmonds Library. All present joined in the flag sa- lute. " PRESENT ABSENT STAFF PRESENT Larry Naughten, Mayor Nigel Euling, Bobby Mills, Pub. Wks. Supt. John Nordquist Student Rep. Jack Weinz, Fire Chief Steve Dwyer Hal Reeves, Building Official Laura Hall Bob Alberts, City Engineer Jo -Anne Jaech Jerry Hauth, Hydraulics Eng. Bill Kasper Dan Prinz, Police Chief Lloyd Ostrom Peter Hahn, Connn. Svc. Dir. Jack Wilson Art Housler, Admin. Svc. Dir. Mary Lou Block, Planning Div. Mgr. Scott Snyder, City Attorney Jackie Parrett, City Clerk Margaret Richards, Recorder Councilmember Dwyer did not vote on any items prior to the audience portion of the meeting. CONSENT AGENDA item (B) was removed from the Consent Agenda. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCIL- MEI4BER JAECH, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The approved items on the Consent Agenda include the following: (A) ROLL CALL (C) ADOPTION OF FINDINGS OF FACT AND CONCLUSIONS OF LAW ON APPEAL OF HEARING EXAMINER DECISION REGARDING CONDITIONAL USE PERMIT FOR AMATEUR RADIO TOWER AT 7300 - 174TH ST. S.W. (CU-17-86/APPELLANT: BULCHIS) (D) ADOPTED ORDINANCE 2577 RELATING iO REVIEW OF STREET USE PERMITS TO REQUIRE ADEQUATE INSURANCE (E) SET DATE OF HEARiNG ON SEPTEMBER 15, 1986 HEARING EXAMINER RECOMMENDATION REGARDING PROPOSED 9 LOT PRELIMINARY SUBDIVISION AT 15720 - 68TH AVE. W. (P-4-86/JERRY STEELE) (F) AUTHORIZATION TO ACCEPT $2,500 FOR PARTICIPATION IN REPLACEMENT OF CULVERT AT 76TH AVE. W. AND MEADOWDALE BEACH RD. FROM RWF JOINT VENTURE APPROVAL OF MINUTES OF AUGUST 19, 1986 [ITEM (B) ON THE CONSENT AGENDA] Councilmember Hall noted a typographical error on page 11 under the Council portion as follows: "Councilmember Ostrom added that small children were unable to sleep with the rock band" --not bank --"playing". Councilmember Kasper inquired about his comments which were made regarding the Meadowdale project. City Clerk Jackie Parrett noted that they were contained on the page subsequent to where he had expected to find them. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER HALL, TO APPROVE THE MINUTES AS AMENDED. MOTION CARRIED. PRESENTATION BY MAYOR OF PROCLAMATION HONORING JESSICA CREE Mayor Naughten read the proclamation into the record and presented Jessica Cree with the procla- mation. Jessica thanked the Council for the pictures and the proclamation. nlIII IFi4CF Mayor Naughten opened the audience portion of the meeting. Eric Anderson, owner of Five Corners Shopping Plaza, referred to the pending liquor license appli- cation at the former Exxon Station at Five Corners. He said members of the Lutheran Church have signed a petition opposing the application and sent a letter on July 1 to the Council to that effect. ile noted that the State sent a letter two weeks before the license was posted. Ile re- quested that the City investigate this matter. Mayor Naughten noted that the application was before the Council on August 19, 1986. However, the Council had requested information as to why a previous liquor license application at Five Corners was denied. The Mayor said lie had not made a recommendation on the current application because the twenty days review period had expired. Mayor Naughten said he had informed Mr. Anderson that the City would forward the letter from the church to the State Liquor Board. Councilmember Jaech noted that if the application was posted on August 25th, then the thirty days have not elapsed yet and the Council could still take action. Mr. Anderson said the liquor inspector was unable to post the application until the 25th of Au- gust because he could not physically enter the building. Councilmember Hall noted that she was serving as Mayor Pro Tem at the time this application was before the Council. The Council requested that it be remanded to the Mayor. The Mayor reviewed the matter but thought the time period had elapsed. However, Councilmember Hall suggested, be- cause the time period had not elapsed, that Mr. Anderson submit the signatures to the City Clerk and the Council would proceed with the matter. Councilmember Jaech recommended that the issue be discussed during the audience portion or Coun- cil portion of the meeting immediately to insure that the time parameters do not expire. " Councilmember Kasper inquired if Ms. Parrett had researched the denial of the previous liquor license application at Five Corners. Ms. Parrett replied affirmatively. Councilmember Hall raised a point of order. She said it has been the Council's policy to not take action during the audience portion of a meeting. If the Council so desired, it could render a decision during the Council portion of the meeting. COUNCiLMEMBER JAECH MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO DISCUSS THE LIQUOR APPLICATION DURING THE COUNCIL PORTION OF THE MEETING. MOTION CARRIED. Don Herman, 19211 Olympic View Drive, said he had requested the City to enforce an anti -glare restriction of a yard light adjacent to his home which was installed in October 1985. However, the light has not been shielded yet. Mr. Herman referred to an article in the newspaper regarding the proposed flag pole for the Port of Edmonds. lie said the light pole is also a structure and is, therefore, in violation of the Uniform Building Code because it exceeds the maximum height limitation and does not observe the proper setback requirements; nor was a permit granted. lie requested that the Building Official investigate this matter. Mr. Herman said he was prepared to pursue this matter further by retaining his own attorney and settling this matter through the court system if necessary. Planning Division Manager Mary Lou Block said the PUD is presently aevising a system to shield the light. If it is not satisfactory, she said the light will be removed. Mr. Herman said the issue should be addressed as a building permit issue. Councilmember Kasper said he has asked the Public Safety Committee, the Council, and Administra- tion to investigate the subject of light poles. but to no avail. He'said he was concerned because Staff told him the light must be shielded. EDMONDS CITY COUNCIL_ MINUTES Page 2. SEPTEMBER g, 1986 Mr. Herman said he would be willing to work with the Council in resolving this matter. He said in his opinion, the poles should be approved by adjoining property owners before they are erected by the PUD. Mr. Merman said the existing pole not only devaluates his property but is also an annoyance. He said the light is sufficiently bright that his neighbor is able to read with her lights off and drapes closed. Ile added if the pole is, in fact, a building structure and subject to building codes, he would pursue action to relocate the pole. Ms. Block recommended that this issue be referred to the Planning Board. She said guidelines and recommendations could be drafted for the use of lights and shielding. Councilmember Ostrom inquired why the pole was not governed under the Uniform Building Code since it is a structure. Ms. Block noted that setbacks would not be addressed if they go down a public right-of-way. City Attorney Scott. Snyder said it is his opinion that the unshielded glare of the pole is illegal. Councilmember Wilson said this issue was an issue for Administration to resolve. Councilmember Ostrom said if the structure is illegal, the shielding is a moot issue. Mr. Snyder said if the glare is visible off site, then it violates the Code. Mayor Naughten inquired if a pole could be erected without a permit. Mr. Herman said the PUD owns the pole, and it was erected at the request of the property owner. Ms. Block said the PUD does acquire permits for installation in the public right-of-way. She said she would investigate the private property. requirements. Councilmember Jaech said the PUD was precluded from installing ninety foot poles on Walnut be- cause they violated the height limitation. She said the subject pole is an Administrative prob- lem and should be addressed regarding the height limitation which would then solve the glare problem if it was in violation of the Code. Mayor Naughten noted that Administration has addressed this issue. He said if it cannot be re- solved, the light will be removed. Councilmember Kasper said the City has allowed the PUD to reduce light standards throughout the City because the PUD installs substandard lights at the request of a property owner if they are unable to obtain City lighting. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER KASPER, TO REFER THE ISSUE OF LIGHTING AND GLARE AND THE ERECTION OF LIGHT STANDARDS ON PRIVATE PROPERTY TO THE PLANNING BOARD. MOTION CARRIED. Ms. Block said if the PUD cannot adequately shield the light, they will be requested to remove it immediately. Councilmember Ostrom recommended that a City official inspect the pole to determine if it is a legal structure. Mr. Herman submitted four pictures of the structure to Ms. Block. Roger llertrich, 1020 Puget Urive, inquired if a variance has been requested for the flag pole at the Port of Edmonds. ile said he read an article inthe newspaper that reported that the Port did not intend to pay the fee to apply for a variance. Ile questioned if the project should appear before the Architectural Design Board (AUB) for review on the 3rd of September. Planning Divi- sion Manager Mary Lou Block said a variance has been applied for, but the City has not yet re- ceived the fee. Fir. Ilertrich inquired if the application was valid without payment. Ms. Block replied negatively. She noted that the ordinance does not specify that the variance must be granted before a project is presented to I:he AUB, and there is no fee required with the AUB appli- cation: Mr. Ilert'rich said lie felt the process of appearing before the Board to review a design which is not in compliance with the Code before a variance has been granted was inappropriate. Councilmember Jaech asked how often projects are presented to the ADB before a fee has been remit- ted for a variance. Ms. Block saicl it is not highly unusual, although not common. Councilmember Jaech inquired how collection of the fee would lie enforced if the AUB submitted its approval of the project. Ms. Block said the variance would not be granted until a fee was paid, and a build- ing permit would not be issued until a variance was granted. EUMONDS CITY COUNCIL MINUTES Page 3 SEPTEMBER 0, 1986 Mr. Hertrich said he thought the City would be wasting its time by reviewing the project because the Port has publicly declared that it would not pay the fee for the variance. He suggested that the fee be remitted prior to review. Mr. Snyder said that Staff has taken a logical interpretation that the process should be forward- ed to the ADB because a complete application has been submitted. However, he said he agreed with Mr. Hertrich. Councilmember Ostrom asked what he would be instructed to do if he told the Planning Department that he wanted to construct a building that did not conform to the Code and wished to apply for a variance. Ms. Block said he would be requested to fill out an application, submit necessary documents, and remit a fee. Councilmember Ostrom inquired if the Port has applied for a building permit. Ms. Block replied affirmatively. Councilmember Ostrom said lie also felt the Port should remit the variance fee before the project is reviewed by the AUB. Councilmember Hall inquired why the project was placed on the ADB agenda. Ms. Block said Staff had always anticipated that the variance fee would be remitted. Councilmember Hall inquired if the project would be removed from the agenda. Ms. Block replied affirmatively if the Council so directed. Mr. Snyder noted that zoning matters are governed by the City's zoning ordinance, which controls height and other. properties of structures: Councilmember Hall inquired if 'a stalemate would occur if a boater stated that the flag pole was a safety matter for boaters. Mr. Snyder replied negatively. He said the American flag has never been a safety device but if it were, it would be controlled by the Coast Guard. Mayor Naughten closed the audience portion of the meeting. CONTINUED HEARING ON F114AL ASSESSMENT BULL, 1.11) 212, SEA VISTA PL., AND ADOPTION OF PROPOSED OIIUIN CE PPRUVING ANU CU1�I 112M NU I iE PI(VAL ASS-L�SSFIENI�ITJI�/1SSESSM Nl RULL UI L-IU Z 2 City 'Engineer Bob Alberts reported that on August 5, 1986.the City Council opened the public hearing for the Sea Vista L.I.D. No. 212 final assessment roll. Council was provided, as informa- tion, the finding and recommendation of the Hearing Examiner, L.I.U. 212 final assessment roll, appeals filed with the City Clerk, and proposed ordinance. Staff presented to the Council the history of the project, the assessment mef:hod, and costs which showed the assessment cost in- crease from $6,803.88 per parcel to $13.921.51 per parcel, with the exception of one lot whose assessment was $6,000. The low assessment far the one lot was based on the special benefits study prepared for the project. The Staff's presentation was followed by testimony from property owners who objected to the assessment. The City Council decided to continue the proceedings as an open hearing on September 2, 1986 and requested Reid -Middleton & Associates to be at the meeting. Reid -Middleton & Associates have been made aware of the hearing and have been requested to attend. Staff recommends adoption of the final assessment roll and the City's LID fund absorb all partici- pation costs by the City. Mr. Alberts noted that John Olson, representative of Reid -Middleton & Associates, was in atten- dance. Mayor Naughten opened the public portion of the meeting. Bob Nowlan, 921 Sea Vista Place, said Ire owns parcel 2. He said the article in the Enterprise contained several errors: the utility easement required 8 feet by the City and not 3 feet. He inquired what meeting Engineering Coordinator Jerry Hauth attended with owners because he said none of the owners that he spoke with ever attended a meeting. Mr. Nowlan said because of poor engineering design plus the fact that the center line is off center by three feet, owners on the west side of the street do not have access to the storm sewer system. EDMONDS CITY COUNCIL MINUTES Page 4 SEPTEMBER $, 1986 lie said the City Engineer allowed the contract to be completed without underground utilities or a street light. Mr. Nowlan said he paid $1.,077.50 for.PUD. In addition, he said he quit -claimed , to the City approximately 56 square feet and expects to be compensated. Fie inquired why the benefit study was authorized and by whom. He noted that the study was the first ever conducted in the City. Mr. Nowlan said the City managed the project poorly, and there was a lack of communication be- tween the City and property owners. He requested that the cost of the LID be reduced by 30%. Bob Klepinger, 925 Sea Vista Place, said lie .purchased parcel 1 after the LID was already formed. lie asked the City what the estimate of the LiD would be in January 1985 and ascertained it to be $9,000 - $10,000 per lot. lie said he did not learn until after his home was under construction that there was no access to the storm drainage system, no power or gas. Mr. Klepinger inquired how the City could not be held responsible for acting on behalf of the property owners by allowing the construction of a substandard street and doubling the assessment from the original estimate. Ruth Wilcox, 21726 - 98th West, said she owns parcels 8 and 9. She said she protested the LID from its inception. his. Wilcox said she concurred with Mr. Nowlan and Mr. Klepinger. Mayor Naughten closed the public portion of the hearing. Councilmember Ostrom raised a point of order. He inquired if the Council could enter into discus- sion with Mr. Olson since the public portion was closed. Mayor Naughten said he thought Mr. Olson did not wish to speak. Councilmember Hall noted that Mr. Olson said he would be happy to respond to questions. Mayor Naughten reopened the public portion of the hearing. Councilmember Wilson inquired who was at fault regarding the overruns, etc. Mayor Naughten said he did not know. Mr. Olson said he was not involved with the project, and the people were are are no longer employed by Reid -Middleton & Associates. Mr. Olson said in researching the files, Reid -Middleton was retained to design certain aspects of the LID only. The roadway was designed 3-1/2 feet south of the property line. The firm was not involved in acquiring the right-of-way or writing the right-of-way description. He said there were miscommunications with the City and the firm as to the actual design and its relationship to the right-of-way. Mr. Olson said one of the property owners requested that additional rockery be installed along the east side of' the roadway, which was a'substantial overrun cost. He said the original cost estimate for the project was approximately $55,000 but later increased to $59,000. Also, an increase of 25-30% to the construction costs were incurred because additional pipe was installed for the utilities on the plat to the south. Mr. Olson referred to an exhibit showing each of the categories of expenditure and overruns. He said the first change order amounted to $18,000; another change order to $4,500; and a third change order to $12,000. Mr. Nowlan, previously identified, referred to change order #2 for an additional 9.40 square feet of rockery. He said he measured the rockery, and it comprised approximately 852 square feet. He inquired where the additional 940 square feet was installed. Councilmember Ostrom asked Mr. Nowlan if he was stating that the rockery did not total 940 square feet. Mr. Nowlan replied affirmatively. He said City Attorney Scott Snyder had asked him if fie knew how to measure rockery. Mr. Snyder noted that rockeries typically have a base which is unable to be measured. Mr. Olson said City Staff was consulted before the decision was made to install additional rockery, and the figures appeared to be correct. EDMONDS CITY COUNCIL MINUTES Page 5 SEPTEMBER 2, 1986 Councilmember Ostrom asked Mr. Alberts if Iie had an explanation for the discrepancies regarding the project as a whole. Mr. Alberts said he assumed that a portion of the rockery is buried. He said all parties involved in the LIU were totally optimistic about the development. No one antic- ipated that a right-of-way would be required, which was time consuming. Landowners were notified in 1984 that the revised cost would be $9,293.56 per parcei, and if costs were increased 10% more, the project would be presented to the Council a(jain. Mr. Alberts said appropriate action would have been to open a new public hearing and establish a new assessment roll at the time. Time delays were involved. An organization which should have managed the entire project was never identified. Mr. Alberts said lie felt better management was the answer. Councilmember Nordquist said he thought LID 212 was one of the poorest ever formed and led to disaster for the following reasons: 1) the time of year was Ina propriate, 2) the fairness of one of the assessments disturbed many people, 3) time delays, and 4� poor management. COUNCILMEMBER NORUQUIST MOVED, SECONDED BY COUNCILMEMBER KASPER, TO ASSESS EACH LOT, Wllil THE EXCEPTION OF LOT N5, 10% OVER $9,293.56 FOR A TOTAL OF $10,222.91. Councilmember Kasper said LID's are always difficult because owners are not developers and do not realize that variances can occur. He said the City should have assessed an increased figure of $10,222.91 and no more. However, he did feel that half of the interest of $12,692 should be retained by the LID and the other half by the City. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCII_14EMBER DWYER, TO AMEND THE MOTION TO ASSESS HALF OF THE INTEREST TO THE LID AND HALF TO THE CITY, WITH THE EXCEPTION OF LOT 5, WHICH WOULD BE ASSESSED A TOTAL OF $6,000. Councilmember Wilson said lie would vote against the motion because he felt the owners were enti- tled to a higher degree of expertise of the entities involved in managing and developing the project, and the City should shoulder more of the financial burden. Councilmember Dwyer requested Councilmember Kasper to explain the rationale of the motion. Coun- cilmember Kasper said the City is not part of an LID but, rather, the conduit to build and manage an LID. Because easements were given to the City, he felt each owner has equally benefitted, with the exception of Mr. Nowlan. However, he did feel that the interest was part of the owners' responsibility. Councilmember Ostrom disagreed. He said the owners would be penalized because the project was mismanaged, and the interest they would be assessed is reflected in overruns. THE AMENDMENT FAILED WITH COUNCILMEMBER KASPER IN FAVOR AND COUNCILMEMBER DWYER, COUNCILMEMBER JAECH, COUNCILMEMBER WILSON, COUNCILMEMBER OSTROM, COUNCILMEMBER NORDQUIST, AND COUNCILMEMBER HALL OPPOSED. Councilmember Ostrom asked Councilmember Nordquist why fie proposed to increase the assessment by 110%. Councilmember Nordquist deferred to Councilmember Kasper. Councilmember Kasper said it is customary to work within 90-110%. Councilmember Ostrom inquired why 100% was not assessed rather than 110%. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER HALL, TO AMEND THE MOTION 1-0 ASSESS 100N RATHER THAN 110%, WHICH WOULD BE A TOTAL OF $9,293.56. Councilmember Hall inquired about the rationale of the amendment. Councilmember Ostrom said the most he felt the City should assess was 100% because it was at fault in managing the project poorly. Councilmember Dwyer noted that not one of the property owners would be assessed more than their property has been enhanced by the LID. Ile said the problem is that people will not be getting as much of a bargain as they anticipated. Ile said he was in favor of the 110% increase because owners received far more of a benefit than the 110%. A ROLL CALL VOTE WAS TAKEN FOR TIIE AMENUMFNT. THE MOTION TO AMEND FAILED WITH COUNCILMEMBER JAECH, COUNCILMEMBER OSTROM, AND COUNCILMEMBER WILSON IN FAVOR AND COUNCILMEMBER DWYER, COUNCIL - MEMBER HALL, COUNCILMEMBER KASPER, /\ND COUNCILMEMBER NOROQUIST OPPOSED. EDMONDS CITY COUNCIL MINUTES Page 6 SEPTEMBER y, 1986 fir. Snyder said because the Council voted against assessing half of the interest, under normal ordinance procedure, then, all of the interest would be assessed against the lower figure as part of the final assessment. Councilmember Dwyer asked Mr. Snyder to advise the Council regarding the wording of a motion which would include a definite figure of $10,222.91 which would include all charges. Mr. Snyder said if the Council wished to assess the base figure and then apply a proportionate share of the interest over the LID period, lie could draft that wording into an ordinance. Councilmember Jaech noted that the last time property owners had an opportunity to withdraw from the LID was when the figure of $6,803.88 was assessed. The cost increased to $13,900 but the Council is presently proposing a $10,222.91 assessment. Councilmember Kasper noted that the 110% figures does not include interest. A ROLL CALL VOTE WAS TAKEN ON THE MAIN MOTION. MOTION CARRIED WITH COUNCILMEMBER DWYER, COUNCIL - MEMBER HALL, COUNCILMEMBER KASPER, AND COIJNCILME14BER NORDQUIST IN FAVOR AND COUNCIL14EMBER JAECH, COUNCILMEMBER OSTiiOM, AND COUNCILMEMBER WILS.ON OPPOSED. The meeting recessed at 8:30 p.m. and reconvened at 8:44 p.m. HEARING ON PROPOSED ORDINANCE REI14SiATING REQUIREMENT OF RECORDING OF COVENANTS TO INDEMNIFY CITY TNO NOTIFY FUTURE PROPERTY OWNERS IN MEADOWDALE AREA Community Services Director Peter Hahn reported that the Insurance Authority to which the City belongs has reviewed the City's procedures and policies on issuance of building permits in the Meadowdale area and has raised some serious questions about the risk and liability to which the City is exposing itself (and the Authority). The City Council was informed of this and has decid- ed to take steps to mitigate the City's liability exposure by whatever measures might be appropri- ate. One such measure included in the Authority letter was the reinstatement of the recording of the covenants to indemnify the City and to notify all future owners. In itself, however, this measure will not mean that all applicants who record covenants will be able to receive building permits under the existing administrative regulations. The City's Building Official has denied the first two building permit applications in the high hazard area within Meadowdale based on the presence of significant slide hazard risks which can- not be mitigated by the measures proposed by the applicant. The Uniform Building Code does not permit the Building Official to issue permits in properties that are unstable. In addition, the Edmonds Community Development Code, in Chapter 19.00.010 (I), states that the Public Works Direc- tor (or designee) shall deny permits for construction where "unsatisfactory ... stability exists". The City has also received a number of claims from homes which have suffered damage from earth movement. One is from the Solies who have claims in the $2 million range; another for a mere $75,000 simply because the City issued a permit for a structure that developed cracks and other damage. These illustrate the type of problem the City could face in the future. Mr. Hahn noted that Lewis Leigh, Executive Director of the Puget Sound Cities Insurance Authori- ty; John Peterson, Geotechnical Engineer, City of Seattle, Department of Construction and Land Use; and Hal Reeves, Edmonds Building Official, were in attendance to address this issue. Mr. Hahn said risk areas in Meadowdale range from 30%, 10%, 5%, to 2%. He suggested that the Council consider a stricter policy in the 30% and 10% areas and a different policy in the 5% and 2% areas. The engineering considerations, Ire said, would remain the same.' Mr. Leigh said the City was singled out in the respect that the Authority responded to a City Staff request, but in general it was not. lie noted that Mercer Island experienced an earthslide the day the pool went into effect. Councilmember Jaech inquired what measures Mercer Island enacted in order to appease the Authori- ty of its participation. for. Leigh said they enacted a steep slope ordinance which placed liabil- ity with the property owner and developer. Councilmember Dwyer inquired if the City would lose its coverage if it did not follow the Authori- ty's recommendation. Mr. Leigh replied negatively. He said, however, the insurance pool under- writes the City's coverage Lased on overall exposures, and a new exposure could be created if the City chose not to follow the Authority's recommendation. EDMONDS CITY COUNCiL MINUTES Page 7 SEPTEMBER 9. 1986 Councilmember Dwyer inquired what the Authority would do if the City did not amend its policies. Mr. Leigh said he would present a case study to the Board of Directors, and the Board would make a decision. Councilmember Dwyer inquired what the City's options would be and the effects if it did not de- crease its exposure. Mr. Leigh said the Board could ask a city to leave the pool for noncompli- ance with its general standards. Councilmember Dwyer inquired if the City was in any danger of being dropped by the pool at the present time. Mr..Leigh said he would bring a similar situation to the Board's attention, and it would render a decision. He noted that he has never brought a situation to the Board's attention to date. Councilmember Ostrom inquired if tale Authority is recommending that the City adopt all of its recommendations. Mr. Leigh said Ire agreed with City Staff's primary and secondary recommenoa- tions. Councilmember Hall referrer; to the July 21, 1986 letter from the Authority as follows: "Based upon my subsequent discussions with Kathleen, it is obvious t►re City is exposed to an area of liability which, as is, cannot be managed and is not defensible". She inquired if the area of liability could be managed and defensible if the Council followed Staff's recommendations. Mr. Leigh replied affirmatively. Mr. Halrn noted that Ire ascertained in a discussion with Mr. Peterson that tire total claims in Edmonds are larger than claims that Seattle has had in the past. Mr. Peterson said Seattle has had Uirec!.or Rule 784 in effect since February 1985, which sets more specific standards in the areas yet to be developed that have slide potential and areas which are environmentally sensitive. 'lire Rule includes: 1) the recording of the covenants and even required insurance; 2) two statements: one from the owner at the time of permit application which states that he recognizes his actions and accepts the responsibility and will convey the knowledge to subsequent owners, and.a statement from the geotechnical consultant that, in his professional opinion, the risk of instability on the site is minimal. Mr. Peterson said approxi- mately 200 to 300 properties have been requested to record covenants since the initiation of the Rule. Councilmember Kasper asked how many of the projects have obtained financing. Mr. Peterson said quite a few have been spec' financed and subsequently mortgaged. Councilmember Dwyer inquired what spec' financing was. Mr. Peterson said the builder takes out a construction loan, builds the house, and subsequently sells it. Councilmember Dwyer inquired if the mural to the story was that the. lots, not withstanding the covenants, have been able to obtain financing. Mr. Peterson replied affirmatively. Mayor Naughten inquired if there were. any insurance requirements aver and above the normal proce- dure. Mr. Peterson said there has not been a need to impose insurance requirements on most single-family developments subsequent 'to the engineering and developmental work being executed. However, surety bonding and construction insurance requirements have been necessary for some of the larger developments., i.e., multi -family developments, to insure that the site is completed through the engineered facilities presented in the permit plans. Mr. Hahn addressed buildability of lots. He said lots can be developed individually as single- family lots, but there are alternatives in situations were slopes are in a hazardous area; an LID could be formed for slide areas for stabilization and construction of various structures. Also, the zoning process allows flexibility in developing various lots. Ital Reeves said in reviewing_ the two building permit applications in the high hazard area in Meaduwdale, he took a strict interpretation of the Uniform Building Code as well as a provision in the City Code. Ile said he agreed with the memo that City Attorney Scott Snyder addressed to the Mayor dated August 26, 1986. Mr. Hahn noted that Mr. Reeves referred to the Earth Subsidence and Landslide Area Ordinance, Hazardous Sites, which states that the Department cannot issue permits where unsatisfactory sta- bility of topography exists. EDMONDS CITY COUNCIL MINUTES ,r' Page 8 SEPTEMBER 2., 1986 Mayor Naughten inquired if a permit could not be issued unless a. geotechnical engineer included in his statement that the risk of instability on the. site was minimal. Mr. Reeves replied affir- matively. He said the permit issuance will not necessarily be granted with reinstatement of the covenants. Mayor Naughten inquired if the covenants would not need to be filed if the geotechnical enr•,ineer included that statement in his findings. Mr. Hahn said that decision would be a policy decision, fie said tine covenants or their recording are not a substitute for minimal risk of sta- bility. Councilmember Hall inquired if a Seattle soils engineer has ever stated that stability does not exist but a dev.eloper has contended that stability could be obtained by installing $1,000,000 of pilings and concrete. Mr. Peterson said that solution would be the technical answer, but it may not be within the realm of financial feasibility. Councilmember Hall asked at what point in time that solution could become a practice. Mr. Peterson said approximately $200,000 is currently being invested in larger estates to stabilize hillsides. Councilmember Hall inquired if cove- nants are irrelevant. Mr. Peterson said that would be a policy decision. Mr. Reeves referred to photographs which were posted on a board. He said they were in his files and provided to him by a long-time resident of tine area. The photographs depicted considerable slide.damage which occurred in the Winter of 1955/56. Mr. Reeves reminded the Council that the slide area has a potential for reactivating. Mayor Naughten opened the public portion of the hearing. Mike Lantz, lots 3 and 4, Block 28, Meadowdale beach, said he did not believe there was adequate notice to the property owners to prepare for tale hearing. He said he was told by Staff that there would be no materials presented at: the hearing. However, a letter prepared by the City Attorney and insurance pool plus a memo was attached to the Council packets. Mr. Lantz said he was an attorney. He said reinstating the record of covenants on a title of real estate may affect the value of the property, may cloud the title, and may create problems. Sufficient time has not elapsed since Seattle ar'opted its Rule to determine whether or not there have or will become any subsequent problems related to financing or any other problems related to those properties. Mr. Lantz recommended that the City, property owners, and insurance pool form a committee to review this issue and make a determination within a short period of time which may be beneficial to all parties. Ile said Ire hoped the Council would seriously consider that avenue because it is a unique opportunity. He also recommended that the building permit process be reviewed in a committee to devise minimum standards. Ile contended that it would be improper for the Council to render a decision tonight because there were 'too many questions that had to be resolved. If the issue was piecemealed and an ordinance drafted and building permit problems were encountered in the near future, he said there was a good possibility that the City would be involved in litiga- tion for five to ten years. Mr. Lantz requested that a decision be deferred for a minimum of thirty days to allow research and discussions to take place. Councilmember Dwyer inquired if several property owners in Meadowdale would be willing to repre- sent the interests of the community. Mr. Lantz replied affirmatively. He suggested that two to three Councilmembers, Mr. Snyder, Mr. Hahn, and the insurance pool form a committee to discuss this issue. Mr. Lantz noted that Mr. Snyder had, in the recent past, raised an issue of blanket covenants. Mr. Lantz said he believed the City had a greater liability with property of existing homes be- cause the City has the duty to notify people of a hazardous area, i.e., subsequent purchasers of existing structures that were built on nothing but slabs. Bob Anderson, 7370 North Meadowdale, said whatever method is devised to resolve the slide hazard risks in Meadowdale must be applied uniformly throughout the City. If the hazards in other areas of the City are not fairly addressed, Ire said there is a potential for litigation. Dr. Anderson said several of the examples in the Council packet that were given as examples of litigation which may be filed against the City were not germane because one is not in the EDMONDS'CITY COUNCIL MINUTES Page 9 SEPTEMBER 2, 1986 U ., Meadowdale area, and another involves illegal fill, which is unrelated with the stability of the underlying soils. Dr. Anderson said he would have appreciated the photoyraphs posted by Mr. Reeves if they also depicted homes which were stable when the slide occurred. Dr. Anderson said the property owners, City, and insurance pool shared the same interests. ile said Mr. Lantz's suggestion of the _formation of a committee to discuss this issue may result in very positive resolutions. Gil Theory, owner...of lots 1 and 2, said he applied for one of the building permits which were denied. He said the process has been very costly, time consuming, and confusing. The three studies which were conducted for hint were denied. He said the last study indicated that Ire had executed all of the requirements and satisfied all of the Uniform Building Code requirements, but the building permit was denied. Mayor Naughten closed the public portion of the meeting. Councilmember Hall said she sympathized with Mr. Theary. She inquired if the City participated in the insurance pool at the time Mr. Theary applied for the permit. Administrative Services Director Art Housler replied negatively. Because Councilmember Hall wished to make inquiries of Mr. Leigh, Mayor Naughten inquired if the public portion should be reopened. Mr. Snyder replied negatively because Ire said the proceedings. were not quasi-judicial. Councilmember Hall inquired if the insurance pool would hold any action of requesting the City to leave the insurance pool in abeyance if the City issued a moratorium on a decision while a commit- tee convened to discuss this issue. Mr. Leigh said the City was not under any time frames. The insurance pool only wanted the City to commence the process. Mr. Snyder said an implication should not be made that blanket denial of permits would occur. He said each person who files a building permit has a right to have it reviewed on its on merits. Mayor Naughten reconrmenaed that the Council proceed with Mr. Lantz', recommendations. Councilmem- ber Dwyer concurred. Councilmember Ostrom asked Mr. Snyder his opinion regarding Mr. Lantz's proposal and, also, how .he would advise the Council to proceed. Mr. Snyder said he agreed with several points that Mr. Lantz raised and, in particular, -the existing homes issue. He said the Council must insure that discussions have a purpose, a reasonable amount of time, and a conclusion in a protracted process and that it not serve as a subterfuge i'or someone -to use as a lag to file an application in order to grandfather rights. Councilmember Ostrom inquired if the process could conclude within forty- five days. Mr. Snyder replied affirmatively. Mr. Snyder suggested that Staff and citizens par- ticipate in discussions during reasonable meeting schedules, and that periodic reports are submit- ted to the Council by the Community Services Committee. Mr. Hahn suggested, in the interest of time, that representatives be identified and the issues agreed on and the alternatives to resolutions put in writing prior to the City, owners, and insur- ance pool meeting. He said he thought forty-five days was a reasonable time period in which to resolve this issue. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER DWYER, TO APPOINT A COMMITTEE UNDER THE DIRECTION OF THE MAYOR WITH REPRESENTATIVES OF THE CITY CHOSEN AT HIS DISCRETION AND 14EADOWDALE RESIDENTS WHO ARE IMPACTED, AS WELL AS REPRESENTATIVES OF PUGET SOUND CITIES INSURANCE AUTHORITY, TO MEET FOR A PERIOD OF NO LONGER THAN SIXTY DAYS, COMMENCING ON SEPTEMBER 8, 1986, AND THAT A MORATORIUM BE INSTITUTED IN MEADOWDALF_ UNTIL DISCUSSIONS CONCLUDE. COUNCiLMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO AMEND THE MOTION TO DELETE 1HE MORATORIUM. MO110N 10 AMEND CARRIED, WITH COUNCILME14BER WILSON OPPOSED. THE MAiN MOTION, AS AMENDED, CARRIED. Mayor Nauylrten and Councilmember Dwyer thanked Mr. Peterson and Mr. Leigh for attending the meet- ing. EDMONDS CITY COUNCIL MINUTES Page 10 SEPTEMBER $, 1986 AUTHORIZATION TO CALL FOR BIDS FOR RESURFACING GYMNASIUM FLOOR AND MOISTUREPROOFING EXTERIOR GYMN S(N WALL IN ANDERSON CENTER Councilmember Nordquist said it was the Community Services Committee's recommendation that the Council proceed to bid for the repairs and installation to both the floors and walls immediately. COUNCILMEMBER NOROQUIST MOVED, SECONDED 13Y COUNCILMEMBER WILSON, '10 APPROVE GOING OUT TO BID FOR THE GYMNASIUM FLOOR AND -CLEANING AND SEALING THE GYMNASIUM WALLS IMMEDIATELY. MOTION CARRIED. MAYOR Mayor Naughten requested confirmation of his appointment of Jeff Palmer to the alternate position on the Planning Advisory Board. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER HALL, TO CONFIRM THE MAYOR'S APPOINTMENT OF JEFF PALMER '10 THE ALTERNATE POSITION ON THE PLANNING ADVISORY BOARD, TERM TO EXPIRE DECEMBER 31, 1989. MOTION CARRIED. Mayor Naughten noted that the Taster's Chinese Restaurant at Harbor Village and the Depot Springs Tavern have applied for liquor licenses. Councilmember Jaech noted that a letter was signed by a number of people requesting the Council to give the liquor license application for Depot Springs careful consideration. Mayor Naughten noted that Dr. Reasby of the School District has requested that the Council consider September 23, 1986 for a joint meeting between local cities, tine County, and the School District to review mutual concerns and opportunities for cooperation and collaboration. Council - member Kasper noted that Council Committee meetings are held on September 23. It was suggested that the Council President attend the meeting. Mayor Naughten adjourned the meeting at 10 p.m. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEM- BER JAECH, TO REOPEN THE MEETING. MOTION CARRIED. Mayor Naughten said the Environmental Protection Agency presented an award to the Beach Ranger Program last Saturday at 3 p.m. John Michelle Cousteau was in attendance. The Mayor said there was a notice in the Staff minutes but invitations were inadvertently not sent. Mayor Naughten announced that a collection of food will be held by the Gardeners Against Hunger on October 19, 1986 from 12-2 p.m. at the Edmonds Unitarian Church, All food will be delivered the following Monday to Concerns For Neighbors Food Bank in Mountlake Terrace and distributed to over 200 families. Mayor Naughten said anyone interested in donating food could contact his office for a telephone number. COUNCIL Councilmember Jaech noted that City Clerk Jackie Parrett had in her possession information regard- ing the liquor license application that was denied at Five Corners in the past. Ms. Parrett said the application was submitted by Go 'N Joy. At that time, it was anticipated that approximately 8 of these stores would be constructed in the Edmonds area alone. A liquor license had already been approved by the Council to a store on Highway 99. A Councilmember had suggested that its performance be proven before another application was approved, and the application was denied on that basis. Councilmember Wilson inquired if a liquor license permit has been applied for. Ms. Parrett re- plied affirmatively. Councilmember Wilson inquired if the permit has been approved. Mayor Naughten replied negatively. Ms. Parrett noted that convenience stores typically apply for a liquor license first because a majority of their profit is derived from selling alcoholic beverag- es. Councilmember Wilson inquired if' another convenience !;tore with gas pumps was necessary at Five Corners. Councilmember Jaech noted that the State ..may deny the application because a number of - liquor licenses have been issued in that area. Councilmember Kasper recalled that a gas station was declined on the corner occupied by the Dairy Queen because several other gas stations were located on adjacent corners. Councilmember Nordquist suggested that the City notify the State that it received signature peti- tions from residents of the surrounding area opposing the liquor application and forward it to EDMONDS CITY COUNCIL MINUTES Page 11 SEPTEMBER 9, 1986 the State. Councilmember Ostrom concurred. Councilmember Jaech said it should also be noted to the State that the area is already serviced by other facilities that serve beer and wine. Council President Hall said she was concerned that she was not informed by Staff about the aware: ceremony on Saturday for the Beach Ranger Program. It was only through a newspaper article that she learned of the event. She said that situation could have been avoided if the Mayor would have communicated that he would not be conducting the Staff meeting to her. She said she felt that communications have been broken clown between the Mayor and Mayor Pro Tem. She suggested that the function of the Mayor Pro 1em be defined. Mayor Naughten said he was not in the office that week; and was unaware that invitations had not been sent out. He suggested that Council President Hall meet with him to discuss this matter. Councilmember Ostrom referred to a memorandum from Police Chief Dan Prinz regarding cats. He said he received a complaint from a citizen that coyotes are killing off cats. Councilmember Dwyer welcomeu Jeff Palmer to the Planning Advisory Board. Councilmember Nordquist referred to a memorandum from City Attorney Scott Snyder requesting au- thorization to institute several law suits. Mr. Snyder said he has discussed that issue with Council President Hall. He said the Lockyer suit also needs to be discussed. He suggested that these items be discussed in an Executive Session. Councilmember Jaech inquired if the street sweeper was malfunctioning because it left a layer of pea gravel on Walnut and Dayton and did not sweep the street. Public Works Superintendent Bobby Mills said the gravel is picked up from the seal coat and expelled through a small gap in the tailgate. Ile said Staff is aware of the problem and will address it. Councilmember Jaech noted that a citizen had complained that utilities were not provided to the subdivision on Sea Vista Place. She inquired if the developer is responsible for providing utili- ty facilities. Planning Division Manager Mary Lou. Block replied affirmatively. Councilmember Jaech inquired why that issue was addressed to the Council tonight. City Attorney Scott Snyder said there was no developer. The lots were lung, double length lots which were, essentially, subdivided by the owners. Councilmember Jaech said discussions took place at the Finance Committee meeting last week. The Conmittee requested that information regarding unbudgeted surplus money or surplus money that has been earmarked is provided to the Council in the form of a memorandum. If surplus money has not been earmarked, the Committee suggested that it be discussed with Council and Staff as to its status. Councilmember Jaech noted that the Council Look formal action in the form of a motion on April 13 to defer the purchase of computer equipment until the Budget process. She said it came to the Finance Committee's attention that a printer and pc were purchased. She inquired why that occurred. Mayor Naughten said the funds were transferred from his budget to the Administrative Services Department's budget. The budget was already approved, and the Mayor said he simply transferred the funds and gave Mr. llousler the authority to purchase the pc. Councilmember Jaech said the Mayor was not budgeted for a pc. Mr. Housler clarified that the equipment that was previously requested was expansion equipment and was not a request for additional equipment. Equipment was budgeted for, and one portal was retained for the Mayor.. Councilmember Jaech said the transfer of funds was a good example of why the Council is concerned. with specific identifica- tion and placement of funds. Mr. Housler said Lhe Council authorizes' a certain amount of money for various department. Funds are identified for specific uses, i.e., line items. Line items are not specified by the Council; Administration apes. Mr. Housler said the Mayor did have the authority to transfer the funds from his budget over to Administration. Councilmember Kasper recommmended that minutes are taken of all Council Committee meetings. City Attorney Scott Snyder said the committees are required to keep minutes of any portion of a public meeting. Councilmember Jaech inquired if a mini tape recorder was available to record the meet- ings and then .Council Resource Person Barbara. Parsloe could transcribe, the minutes. Council President Hall replied affirmatively. Councilmember Kasper recommended that the Council review Community Services Director Peter Hahn's annual report. Councilmember Wilson said he hoped that the transfer of funds from the Mayor's budget to purchase the pc does not jeopardize the purchase of expansion equipment during the budget process. EDMONDS CITY COUNCIL MINUTES Page 12 SEPTEMBER 2, 1986 Council President Hall said the Hanchett Hearing has been scheduled on September 30th replacing the dinner meeting. She said a dinner meeting will be in conjunction with a budget work session on October 16. Councilmember Dwyer inquired why the meeting commenced at 6:15 p.m. on September 30th. Council President Hall said the time was allowed to interview for the Parks & Recreation Manager position. Councilmember Nordquist said he felt more time was necessary. He inquired if that discussion could be rescheduled on October 7 from 7 to 8 p.m. Community Services Director Peter Hahn concurred. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER JAECH, 10 ADJOURN 1HE MEETING. The meeting adjourned at 10:32 p.m. These minutes are subject to September 9, 1986 approval. x� ACQ LINE G- PARRETT, City Clerk ARRY . NAUG TEN Ma r EDMONDS CITY COUNCIL MINUTES Page 13 SEPTEMBER 9., 1986