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07/14/1987 City CouncilTHESE MINUTES SUBJECT TO JULY 21, 1987 APPROVAL EDMONDS CITY COUNCIL MINUTES JULY 14, 1987 (WORK MEETING) The regular meeting of the Edmonds City Council was called to order at 7 p.m. by Mayor Pro Tem Jack Wilson in the Plaza Meeting Room of the Edmonds Library. All present joined in the flag salute. PRESENT ABSENT STAFF PRESENT Jack Wilson, Council Pres. Larry Naughten, Mayor Chuck Day, Acct. Supvr. Steve Dwyer Scott Tracy, Bob Alberts, City Engineer Laura Hall Student Rep. Peter Hahn, Comm. Svs. Dir. Jo -Anne Jaech Art Housler, Admin. Svc. Dir. Bill Kasper Scott Snyder, City Attorney John Nordquist Jackie Parrett, City Clerk Lloyd Ostrom Margaret Richards, Recorder CONSENT AGENDA Items (B) and (D) were removed from the Consent Agenda. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER JAECH, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The ap- proved items on the Consent Agenda include the following: (A) ROLL CALL (C) REPORT ON BIDS OPENED JULY 1, 1987 FOR PARK RULES SIGNS AND AWARD OF CONTRACT TO AUBURN �f SIGN CO. ($8,225.65) a. (E) SET AUGUST 4, 1987 FOR HEARING ON APPEAL OF ADB DECISION REGARDING PROPOSED 84 UNIT ,g BUILDING AT 7227 - 210TH ST. S.W. (AP-9-87/APPELLANT: WILLIAM TSAO) APPROVAL OF MINUTES OF JUNE 30, 1987 [ITEM (B) ON THE CONSENT AGENDA] Councilmember Ostrom referred to the memorandum from City Clerk Jackie Parrett regarding correc- tions as noted by Engineering Coordinator Chris Beckman as follows: page 9, paragraph 6, line three, the word "Federal" should be "State"; line 7, the third word "the" should be "Federal paragraph 7, line 2, "9th" Avenue should be "97th" Avenue; page 10, line 1, following the fourth word, the word "signal" should be inserted to read, "Mr. Alberts recommended that si nal improvements...". At the end of the motion (fifth line on the page) "MOTION CARRIED" should be �/to inserted. Councilmember Hall referred to page 3, last paragraph, noting that Mayor Naughten said Dr. LeWarne was selected as Local Teacher of the Year, and Councilmember Ostrom added that Dr. LeWarne was also selected as State Teacher of the Year. She then referred to page 8, para- graph 7, requesting that the spelling of "Kathy" is verified. Council Assistant Pat Lee verified the spelling. COUNCILMEMBER HALL MOVED, SECONDED BY COUNCILMEMBER OSTROM, TO APPROVE THE JUNE 30, 1987 MINUTES AS AMENDED. MOTION CARRIED. PROPOSED RESOLUTION 660 ADOPTING HEKINAN, JAPAN AS A SISTER CITY ITEM D ON THE CONSENT �,i,�w✓ "- a AGENDA Councilmember Ostrom said he believed the name of the President of the Sister City Committee was Delores Uhlman and not Doris Uhlman. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO APPROVE ITEM (D) WITH THE CORRECTION IN THE TEXT. MOTION CARRIED. Councilmember Hall raised a point of order. She noted that Councilmember Kasper wished to ad- dress the minutes of July 7, 1987. APPROVAL OF MINUTES OF JULY 7, 1987 [ITEM (B) ON THE CONSENT AGENDA] ri Councilmember Kasper referred to page 8, paragraph 2, and requested that the word "Edmonds City ' Council" rather than "Council" be inserted in the phrase, "...would not supersede Council action and would be subject to Council approval" in order to avoid confusion with other city councils. The memorandum from City Clerk Jackie Parrett with regard to correction of the minutes also noted that Mayor Naughten noted on page 11, second item under "Mayor", attendance at the fireworks display was 2,500 and not 25,300. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO APPROVE THE JULY 7, 1987 MINUTES AS AMENDED. MOTION CARRIED. / -- REVIEW AND APPROVAL OF MEMORANDUM OF AGREEMENT FOR METRO SEWAGE SWAP Community Services Director Peter Hahn reported that on May 26, 1987, the City Council authorized the Mayor to write a letter to Metro supporting the concept of a sewage swap involving Richmond Beach and Edmonds East flows. On June 12, 1987, the Metro Water Quality Committee approved the swap even though the swap cost estimates for Metro are $40-44 million and a new treatment plant is estimated to cost approximately $38-39 million. The Metro Council will discuss .the issue on July 16, 1987. Metro has requested the City's concurrence to a Memorandum of Agreement on a swap. The draft Memorandum of Agreement is essentially an agreement to enter into a final agreement, assuming that acceptable terms are devised and approved by both parties. The City will have the option to rescind the agreement if any terms in the final agreement are not acceptable. During the last six weeks, staff of Edmonds and Mountlake Terrace have done further analysis of the swap impacts to the Edmonds system. Staff has identified the following potential benefits: 1) reduced 0 & M costs by routing a major portion of the flows through the Ballinger Lift Station to Metro. The savings to Edmonds are estimated at $54,000 per year, or $1.08 million for 20 years; 2) a postponement by many years of the time when the Edmonds Way gravity trunk sewer would have to be increased in capacity. By getting 2.8 mgd capacity "free", the City will probably never need additional capacity in the trunk line from Highway 99 to the treatment plant. This pipe segment is approximately 3 miles long. Any capacity upgrade would be expensive and disrup- tive; 3 the existing Ballinger Lift Station is 28 years old and will need considerable upgrade, if not total replacement, in the near future. There is a very strong possibility that a single lift station, built and operated by Metro, could handle flows to Edmonds and to West Point, which would result in a considerable savings; 4) it may be possible to locate the new pump station at a location which removes it from the midst of a residential neighborhood, which will have a posi- tive environmental impact on.the Ballinger area; 5) there is a possibility that the redundant force main between the Ballinger lift station and Highway 99 may not be necessary. This has a net impact on Edmonds of approximately $200,000. Assuming that the City Council agrees with the general concepts of the swap and is in support of it, there is no risk in approving the Memorandum. None of the schedules for treatment plant planning and design is dependent on the final execution of a full agreement with Metro. Councilmember Jaech inquired if accurate figures with respect to the flow for only Mountlake Terrace and Ronald Sewer District were available. Mr. Hahn replied affirmatively. Councilmember Jaech inquired how much the flow from only those two entities exceeded the amount as proposed in the exchange. Mr. Hahn said he did not have those figures. Councilmember Jaech inquired if those figures could be made available to the Council. Mr. Hahn replied affirmatively. He said utilization by Mountlake Terrace and Ronald Sewer District was approximately two-thirds of total utilization at the Ballinger lift station. Councilmember Nordquist pointed out that the Memorandum of Understanding (MOU) dated July 14 indicated that the lift station may have to be rebuilt completely but the Staff report indicated a $54,000 savings per year by diversion of flows from that station to Metro. Mr. Hahn said either scenario was possible. Councilmember Nordquist inquired if the capital investment could be relieved completely if the flow was diverted. Mr. Hahn replied negatively. He said the in- vestment would not be relieved completely but could be greatly reduced. He said savings would be realized from either scenario; the new station would have lower 0 & M costs for Edmonds and Mount- lake Terrace because the predominant flow would be routed to Metro as opposed to going to Edmonds. Councilmember Wilson inquired about the costs to upgrade the Edmonds Way gravity trunk sewer, if necessary. City Engineer Bob Alberts replied $80 to $100 per foot for 15,000 feet. Councilmember Jaech inquired who would be responsible for the 0 & M costs of the line from Rich- mond Beach to Edmonds. Mr. Hahn replied Metro. Councilmember Jaech inquired if Metro would be EDMONDS CITY COUNCIL MINUTES Page 2 JULY 14, 1987 responsible for the lines within the city limits of Edmonds. Mr. Hahn said that issue has always been presented to Staff as Metro's facility but may be subject to negotiation. Councilmember Jaech inquired about the cost to route the Edmonds East flow to Richmond Beach. Mr. Hahn said monthly rates were approximately $5 higher than Edmonds rates. Councilmember Jaech inquired if Metro would continue to be responsible to bill its customers for services routed to Edmonds. Mr. Hahn replied affirmatively. He added that Edmonds would continue to bill its customers on High- way 99, Mountlake Terrace, and Ronald Sewer District at Edmonds rates. Councilmember Jaech said she would like data submitted to the Council citing the benefits to Edmonds if the City was to engage in a swap with Metro. She said she would like Staff to pursue a swap whereby Richmond Beach routed its flow to Edmonds and Mountlake Terrace and Ronald Sewer District routed their flows to Richmond Beach. Councilmember Hall suggested that the Council keep in mind the facility to the north. She re- ferred to page 3 of the agreement, section 3, and expressed concern that an EIS was not prepared for the existing treatment plant in Edmonds. Mr. Hahn said an environmental assessment was made for the Dayton Street site. Councilmember Ostrom pointed out that the agreement referred to an environmental review and not an EIS. Mr. Hahn said Metro has prepared a facilities plan as well as a companion Environmental Impact Statement for the new Richmond Beach plant. He said Metro must formally amend their plan in order to proceed. COUNCILMEMBER OSTROM MOVED, SECONDED BY COUNCILMEMBER DWYER, TO APPROVE THE MEMORANDUM OF AGREE- MENT FOR RECIPROCAL SEWAGE TREATMENT AND DISPOSAL WITH METRO. City Attorney Scott Snyder suggested that page 2 of the agreement be amended to delete the first "Whereas" at the top of the page and amend the second paragraph to read, "Whereas, Metro and Edmonds may determine that it is in their respective best interests to enter into an agreement for the delivery of Richmond Beach sewage to Edmonds and Edmonds sewage to Metro as previously described following more detailed analysis and a complete review of the environmental impacts of constructing the facilities that would be necessary to deliver Richmond Beach sewage to Edmonds and Edmonds sewage to Metro". COUNCILMEMBER DWYER MOVED TO AMEND THE MOTION, SECONDED BY COUNCILMEMBER NOROQUIST, TO INCLUDE THE CHANGES AS RECOMMENDED BY THE CITY ATTORNEY. A ROLL CALL VOTE WAS TAKEN. MOTION CARRIED WITH COUNCILMEMBER DWYER, COUNCILMEMBER NORDQUIST, COUNCILMEMBER OSTROM, AND COUNCILMEMBER WILSON IN FAVOR; COUNCILMEMBER HALL, COUNCILMEMBER JAECH, AND COUNCILMEMBER KASPER OPPOSED. A ROLL CALL VOTE WAS TAKEN ON THE MAIN MOTION, AS AMENDED. MOTION CARRIED WITH COUNCILMEMBER DWYER, COUNCILMEMBER NORDQUIST, COUNCILMEMBER OSTROM, AND COUNCILMEMBER WILSON IN FAVOR; COUNCIL - MEMBER HALL, COUNCILMEMBER JAECH, AND COUNCILMEMBER KASPER OPPOSED. Councilmember Hall said the agreement was just a lot of "gobbledygook and a pie in the sky" and was an embarrassment. Councilmember Wilson said he felt it was in the best interest of the City to continue to negoti- ate with Metro, and the agreement was a token of good faith. He noted that the agreement could always be amended and was not binding. CONTINUED DISCUSSION AND APPROVAL OF MEMO OF UNDERSTANDING WITH OTHER AGENCIES FOR SECONDARY SEWER TREATMENT Community Services Director Peter Hahn said the City of Lynnwood recently requested a nominal increase in its capacity by less than .1 MOG. He noted that Edmonds routes a percentage of sewage to the Lynnwood treatment plant and requires .3 MGD. Mr. Hahn noted that the issue was continued from July 7, 1987. One point that was raised was incorporation of a bond issue for Woodway in the Edmonds bond issue. He said there does not appear to be any objection by any participating agency if this scenario was to occur. Olympic View Water District raised some questions about how sections in existing agreements deal- ing with subjects other than the secondary treatment project would be reviewed and amended. Mr. Hahn noted that additional sections dealing with the above concerns were included in the Council packets. Mr. Hahn reviewed the proposed amendments and additions as follows: 1) amend section 5, the Oversight Committee section, as follows: all participants concur as to the formation of a formal Oversight Committee. The role of the Committee shall include review and submittal of recommenda- tions on various operational budgetary matters of a certain level of significance. Examples would include the establishment of a preliminary proposed annual budget by approximately the middle of the year; overhead costs levels; reserve and replacement fund expenditures over EDMONDS CITY COUNCIL MINUTES Page 3 JULY 14, 1987 1 $30,000; establishment and review of annual cost audits; long-term capital plans; and influent quality standards, 2) amend Section 18, the flow quality section, as follows: capacity will be based on flow quantities only and not on sewage quality characteristics such as BOO and/or SS. Provisions will be made for the City of Edmonds to determine the acceptability, terms, and condi- tions for service to any customer within the service area who is found to have excessive BOD, excessive SS, or any other influent characteristics which may impact plan operations and costs, 3) Edmonds and Olympic View Water and Sewer District agree to negotiate in good faith any and all operational service and administrative issues which are contained in existing agreements, or issues not contained in any agreements, and fall outside the funding of the secondary treatment project and the operation of the plant, 4) Section 23 notwithstanding, the City of Edmonds., at its own discretion, may assist the Town of Woodway in financing its share of the project on terms which are acceptable to both parties. This is in recognition of the unique obstacles which Woodway faces in financing its share of the project costs, 5) the execution of the Memorandum does not limit the right of all parties to negotiate the details of incorporating the principles of the Memorandum into the final agreement. Councilmember Nordquist noted that reference made with respect to the function of the Oversight Committee in the Memo of Understanding dated June 30, 1987 and the Memo dated July 7, 1987 con- flicted. Mr. Hahn concurred. He noted that the clause in the June memo was deleted. Councilmem- ber Nordquist inquired about the latitude of the Edmonds City Council as the lead agency. Mr. Hahn said the Council will have a tremendous amount of leeway, and the Oversight Committee would act in an advisory capacity. Councilmember Nordquist inquired which entity would make a final decision. Mr. Hahn said the Edmonds Council. Councilmember Jaech recommended that the MOU reflect that the Committee is to act strictly in an advisory capacity and the Edmonds Council as the deciding body. Councilmember Dwyer referred to item #25 in the agreement with Olympic View Water District (OVWD) which stated, in essence, that if any terms more favorable are extended to any partici- pant, then they must be extended to all participants. He requested Mr. Hahn to address that issue with respect to amendment #4. Mr. Hahn said that issue was addressed in item #23 of the June MOU which stated, in essence, that the concepts shall apply to all parties sharing in the plant capacity. Councilmember Dwyer inquired if Edmonds is being asked to agree to item #25 of OVWD MOU. Mr. Hahn replied affirmatively. He noted that Edmonds prefers to address that clause with language reflected in item #23 of the June MOU. He said, however, that all of the participants agree that there may be a number of minor issues that will be unique to each agency and can be addressed outside of the basic agreement. Councilmember Dwyer inquired if Edmonds was being asked to support an MOU that includes the wording presently incorporated in item #25. Mr. Hahn replied negatively. Councilmember Hall referred to the $45 million lid, as indicated in the June memo. She expressed concern that a contingency of $5 million was already included in the project cost of $39.1 mil- lion. Mr. Hahn said a further contingency was included just as a precautionary measure. Council - member Hall said she believed $39.1 million to construct the plant was excessive but that it should be used as the cap and not the $45 million. Councilmember Wilson expressed concern regarding item #7 of the MOU, which stated that no com- mitment was made by the participants for cost sharing of plant relocation, if necessary. Councilmember Wilson referred to item #13 of the June MOU. He inquired if Mr. Hahn was comfort- able with the January 1, 1992 date in which Edmonds would assume ownership and operation of the Ballinger lift station. Mr. Hahn replied affirmatively. Councilmember Wilson recommended that item #25 be deleted. Councilmember Jaech reiterated that she could not approve the MOU until an agreement was reached with Metro. Mr. Hahn said discussions are scheduled with Metro on Thursday, and he pro- jected that the issue would either be abandoned or postponed until August. He noted that issues which Metro has yet to address itself are not scheduled for discussions until November 1988. Mr. Hahn added that execution of the MOU will allow Edmonds to collects costs from the participat- ing agencies immediately rather than waiting until 1992. He reiterated that the participating agencies have agreed to every point addressed by the Council since March 14. Councilmember Wilson stated that the agreements from the participating agencies were ambiguous and incomplete. Councilmember Dwyer said he preferred that an agreement was tendered to at least one of the par- ticipating agencies, noting that the agreement, once signed, would serve as a model and may per- suade the remaining agencies to execute the agreement. EDMONDS CITY COUNCIL MINUTES Page 4 JULY 14, 1987 COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER OSTROM, TO ADOPT THE MEMORANDUM, AS PRO- POSED, WITH THE AMENDMENTS PROVIDED TO THE COUNCIL BY STAFF AND TO INCLUDE THAT THE OVERSIGHT COMMITTEE ACT IN AN ADVISORY CAPACITY ONLY TO THE EDMONDS CITY COUNCIL. A ROLL CALL VOTE WAS TAKEN. MOTION FAILED WITH COUNCILMEMBER DWYER, COUNCILMEMBER NORDQUIST, AND COUNCILMEMBER OSTROM IN FAVOR; COUNCILMEMBER HALL, COUNCILMEMBER JAECH, COUNCILMEMBER KASPER, AND COUNCILMEMBER WILSON OPPOSED. Mr. Hahn inquired how he should approach the participating agencies. Councilmember Wilson recom- mended that only one MOU is submitted for all participating agencies and to include the issue of relocation. CWC-HDR TREATMENT PLANT MONTHLY REPORT Gordon Culp and Bud Benges of CWC-HDR were present. Mr. Benges distributed a progress report to the Council. Mr. Culp noted that the project was on schedule and within the budget at the present time. He said that three members of the Citizens Advisory Committee were in attendance at the meeting. He reported that the Committee met on June 22 and June 24 to review several concepts with respect to aesthetic aspects of the plant and will meet with the architect on July 20. Mr. Culp said the outfall work has been completed in accordance with the scope of work. The line from the plant to the Sound will serve the ultimate needs, and a line will not be necessary under- neath Dayton Street. He said, however, it will be necessary to expand the capacity at some point in the future.at an estimated cost of $800,000. Mr. Culp said incineration is being used as a basis for predesign. Councilmember Nordquist said there was a persistent rumor about town that Dayton Street will be torn up. Mr. Culp said the street will not be torn up for a pipe that CWC-HDR would install. Councilmember Nordquist inquired if Metro may lay pipe for the secondary treatment plant under- neath Dayton Street. Mr. Culp replied negatively. Mr. Benges reported that the predesign cost estimate has been completed. The cost estimate was developed using site specific information and more detailed process and structural information. The contingency is reduced to 15% based upon more accurate material quantities. The estimate is used for selecting and refining details of the project and early financial planning. Mr. Benges said the facility plan estimate was made. The estimate was developed using generic cost relationships for the selected unit processes. A 25% contingency is required to cover the lack of adequacy. This estimate is used for overall process selection and early -on planning. Mr. Benges said a completed design cost estimate was prepared by the engineer and represents his opinion of the construction cost based on the completed plans and specifications. The esti- mate is used to evaluate bids from contractors. The estimate is intended to exceed the low bid estimate by 10%. Councilmember Dwyer inquired if the cost estimate has been reduced from $39.1 million to $37.5 million. Mr. Benges replied negatively. He said the predesign cost estimate will indicate that the $39.1 million is essentially $39 million at the present time. Mr. Benges said the cost of contractor's bids represents the successful bidder's bid based upon the completed plans and specifications. It varies from the final cost only by change orders to the contract. The national average amount for change orders is 4%. Although CWC-HDR projects average less than 2%, they felt it was prudent to maintain a 4% allowance for financial planning. Mr. Benges said upon completion of the construction, the original bid plus change orders will represent the actual construction costs. He said the predesign cost estimate for construction costs is at $34 million inflated to 1990 and includes sales tax of 8%. Councilmember Wilson inquired about the noise issue. Mr. Benges said noise levels were mea- sured on July 1 and 2 at the treatment plant site, Harbor Square, and at the condominiums and residence east of the plant site. He said noise levels are essentially the same at each site that was measured. The noise levels at the secondary treatment plant will not exceed existing levels at the present site. Councilmember Hall inquired if those noise levels were indicative of industrial levels or downtown commercial levels. Mr. Benges replied industrial levels. Mr. Culp pointed out that the treatment plant will not contribute to.existing noise levels. EDMONDS CITY COUNCIL MINUTES Page 5 JULY 14, 1987 UPDATE REGARDING SUGGESTED INCREASE IN SEWER RATES Administrative Services Director Art Housler noted that Mary Hughes, Yeastings & Hughes, was present. Mr. Housler reported that the Council instructed Staff to provide additional information with respect to sewer rate increases. Although the City Council did not specify what information was desired, their concerns seemed to focus on whether rates need to be increased. Councilmember Hall inquired how accurate rate increase projections could be made when considering all of the unknown factors. Mr. Hughes said a firm projection could not be made at this point in time because none of the key variables have been established or answered. Ms. Hughes said she assumed that bonds would be issued early next year and interest rates would be approximately the same as they are at the present time. She noted that the final rate may not be sufficient if project costs or interest rates are substantially higher or if the agreements with the participat- ing agencies are not executed as currently written. Councilmember Kasper inquired what rates were projected for 1988 through 1991 for bonds. Ms. Hughes said a 7.5% coupon rate was assumed. She said it was presumed that an "A" rated fixed sewer revenue bond would be issued in early 1988. Ms. Hughes said the bonds were split into two issues with slightly under $5 million in 1988 and the remainder in 1989 in order to avoid arbitrage rebating requirements and to average the interest rates. She suggested that the City consider financing the entire cost of the project if interest rates are 7.5% in 1988. Councilmember Kasper inquired if Ms. Hughes no longer recommended that rates be raised immediate- ly. Ms. Hughes said computer analysis reflects the first increase in rates in early 1988. She said she has not addressed the issue of whether rates should be raised in 1987 versus 1988. She said she did, however, address the issue of raising rates in the near future as opposed to wait- ing until the project was completed. Councilmember Hall expressed concern that other cities have already raised their rates. Ms. Hughes said the size of the increase must be defined before deciding when to raise the rates. She said the sooner rates are raised and the larger the increase, the bigger the savings. Councilmember Kasper noted that the report submitted by Yeastings & Hughes reflects that all costs will be bonded. Ms. Hughes said interest and bond reserves were not capitalized in the report, only the bond issuance cost and project costs. Councilmember Kasper expressed concern that the secondary wastewater treatment plant will be financed through the current rate structure and that no replacement funds will be established. Councilmember Jaech pointed out that current rates are based upon utilization of the existing plant and do not take into consideration secondary treatment. She said Staff has indicated that costs for the secondary treatment plant will be funded through a surplus fund. She said, howev- er, that those funds have been earmarked for other projects. Councilmember Ostrom inquired when rates must absolutely be raised in order to finance the project. Ms. Hughes said rates must be raised no later than early 1988 and must be at full level by 1991. Councilmember Dwyer inquired if March 1988 was consistent with Ms. Hughes recommendation to raise rates in 1988. Ms. Hughes said the agreements with the participating agencies must be executed and more definition of project costs and grant levels must be obtained. Councilmember Kasper said he believed rates should be been raised in past month rather than wait- ing until 1988. Councilmember Wilson noted that Mountlake Terrace raised its rates by 20% for 1987 through 1991 and Lynnwood raised its rates by 10%. He referred to the Yeastings & Hughes report dated March 4, 1987 which stated: 1) that if rates were raised in 1988 or earlier, a present value savings of as high as $400,000 could be realized for the City, or $1.6 million for the system; 2) it is significantly cheaper on a present value basis to minimize the size of the bond issue and finance costs from cash or increase customer rates; 3) raising rates early results in a smaller bond issue and less negative arbitrage. Councilmember Wilson said rates should clearly have been raised in the past. Councilmember Hall concurred. Ms. Hughes said the sooner and the higher rates are raised the bigger the savings, but it is a Council policy when to do so. Mr. Hahn concurred. He clarified that sufficient money will be available to address water and sewer projects not associated with secondary treatment. He said Staff, as well as Mary Hughes, project- ed an $8 million need for all water/sewer projections in addition to the treatment plant. He EDMONDS CITY COUNCIL MINUTES Page 6 JULY 14, 1987 noted that those projects are being implemented and that $1.458 million of water/sewer projects will be undertaken in 1987. Mr. Hahn said the Council must realize that the projects can only be accomplished in stages due to limited staffing, as well as other considerations. Councilmember Wilson inquired if rates would not have to be increased again to improve the sys- tem. Mr. Hahn said the Yeastings & Hughes report stated that rates do not need to be increased to fund regular projects. He said only a small percentage of the sewer system is approaching 50 years old, noting that the system was designed to last in exceed of 50 years. DISCUSSION ON PROPOSAL TO EXEMPT POLITICAL BROCHURES FROM ADVERTISING (HANDBILL) LICENSE REQUIREMENTS City Clerk Jackie Parrett said she recently advised the Council of certain requirements of the City Code regarding the use of handbills, including a license and license fees. The City Code does not exempt political brochures from advertising license requirements, and she said it may be that the Council will want to consider an amendment to waive the licensing requirements for polit- ical brochures so that campaigning is not inhibited. Ms. Parrett said the Litter'Control section of the Code (Chapter 6.40) sets forth the manner of distributing handbills. She did not suggest any changes to that section, but reminded the Coun- cil of the requirement that precludes the distribution of handbills on vehicles or vacant resi- dences. Ms. Parrett said City Attorney Scott Snyder suggested that either the licensing requirement be waived or exempt all noncommercial handbills from the licensing requirement. Ms. Parrett said that although she had associated the handbill license with litter control, she discovered that the handbill license originated in 1908 but the litter control ordinance did not originate until 1972. She said the handbill license section was codified from the 1908 action in connection with auctions and, therefore, Mr. Snyder's suggestion to repeal the chapter seemed to be appropriate. Councilmember Kasper inquired about materials located on posts. Mr.' Snyder said that issue was an enforcement problem. Mr. Snyder noted that there would be some overlap in the Code if the licensing provision was repealed because a peddler's and solicitor's license (Green River Ordinance) for door to door activities is currently in effect. He said it would be difficult to distinguish between politi- cal and religious issues and suggested that the chapter be repealed entirely. He said he also submitted an ordinance to the City Clerk which would retain the handbill provision but exempt all forms of noncommercial speech, as defined in the City's litter control ordinance. COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER WILSON, TO REPEAL CHAPTER 4.04. MOTION CARRIED WITH COUNCILMEMBER OSTROM OPPOSED. (The ordinance will appear on next week's Consent Agenda.) DISCUSSION REGARDING MEBT HARDSHIP WITHDRAWALS Councilmember Kasper requested this discussion, and he noted that MEBT has been discussed in com- mittee meetings recently; MEBT is an offered approach to employees to save money; and other cit- ies have emergency withdrawals. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER DWYER, TO REQUIRE ALL MEBT MEMBERS TO EXE- CUTE A YES OR NO BALLOT AS TO WHETHER EMPLOYEE HARDSHIP WITHDRAWALS SHOULD BE INCLUDED IN THE PLAN. Councilmember Hall anticipated that argument would be made that the funds in the plan are proper- ty of the employees, but she said those funds are earning interest for every participant of the plan. She said the plan was not set up as a source of ready cash but as a retirement fund. Councilmember Jaech said the Administrative Services Committee discussed administration of the funds and will submit a recommendation to the Council concerning the management of those funds in the near future. She said the Committee received a letter from Fire Fighters Local 1828 I.F.A.A. stating that decisions about the employees' retirement system should be made by the employees and not the MEBT Committee. They requested that the issues of hardship withdrawals and all future changes and policies are brought forth to the employees to vote on. MOTION CARRIED. MAYOR Mayor Pro Tem Wilson announced that two liquor license applications were pending and would be submitted for approval if no objection was made by the Council. No objection was noted. (They EDMONDS CITY COUNCIL MINUTES Page 7 JULY 14, 1987 LL 1 were Class H lounge in lieu of service bar for Taster's Chinese Restaurant, and Class CD li- cense for the Family Pancake House.) Mayor Pro Tem Wilson welcomed City Attorney Scott Snyder back from vacation. COUNCIL Councilmember bwyer reported that individual members of SnoCom were covered by the insurance 5 Co M pool but the City was not. Councilmember Dwyer said Councilmember Kasper requested that the issue of fireworks permits be placed on the Public Safety Committee agenda in the near future. Councilmember Nordquist said he attended the Health District meeting. He noted that Councilmem- ber Hall, as well as several others, has worked very diligently in the formation of the Finance Committee, which was established last year. He said an 18% increase in the per capita was recent- ly passed. He said a four-part proposal was recently discussed in which County and City monies would be pooled in specific areas. Councilmember Hall brought Walla Walla onions for the Council. Councilmember Jaech said she noticed that the corner park adjacent to Albertsons is totally blocked from view by a vendor selling cherries from his truck. She requested Staff to investi- gate that matter. Councilmember Jaech said a large van has been parked in front of Doces Mall for quite some time with advertising placed all over it. Councilmember Jaech noted that Staff is still utilizing the services of Foster & Marshall even though the firm is no longer under contract with the City. Administrative Services Art Housler said the Council selected Foster & Marshall to be the City's bond counsel in 1979 and has not made any other selection since that time. He noted that Foster & Marshall offers services to the City without charge. Councilmember Jaech said that firm was replaced by Yeastings & Hughes and Roberts & Shefelman. She did not want to feel obligated to Foster & Marshall because of free services. Community Services Director Peter Hahn asked the Council if they wanted Mary Hughes to be present at the July 21, 1987 meeting. The Council replied negatively. Councilmember Kasper reported that the City of Marysville would like to purchase a trolley and would like Edmonds second trolley. He said Marysville would be willing to lend the trolley to Edmonds if the first trolley was out of commission. Councilmember Kasper said the reconstitution issue is subject to review by Community Transit. He inquired who the Council desired to represent the City. COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER HALL, TO APPOINT COUNCILMEMBER KASPER TO REPRESENT THE CITY. MOTION CARRIED. The meeting adjourned at 9:12 p.m. These minutes are subject to July 21, 1987 approval. 4AU�ELINE �_GkRRETT, City Clerk 0 �t sm, f1ayor Pro Tem EDMONDS CITY COUNCIL MINUTES Page 8 JULY 14, 1987 AGENDA EDMONDS CITY COUNCIL . PLAZA MEETING ROOM-.LIBRARYewLowc 7 :00 - ! 0:00 P.M. JULY 14, 1987 WORK MEETING - NO AUDIENCE PARTICIPATION CALL TO ORDER FLAG SALUTE 1. CONSENT AGENDA (A) ROLL CALL (B) APPROVAL OF MINUTES OF JUNE 30, 1987 AND JULY 7, 1987 (C) REPORT ON BIDS OPENED JULY 1, 1987 FOR PARK RULES SIGNS, AND AWARD OF CONTRACT TO AUBURN SIGN CO. ($8,225.65) (D) PROPOSED RESOLUTION 660, ADOPTING HEKINAN, JAPAN, AS SISTER CITY (E) SET DATE FOR HEARING ON APPEAL OF ADB DECISION REGARDING PROPOSED 84-UNIT BUILDING AT 7227 210TH ST. S.W. (AP-9-87/APPELLANT: WILLIAM TSAO) (SUGGESTED HEARING DATE: AUGUST 4, 1987) 2. REVIEW AND APPROVAL OF MEMORANDUM OF AGREEMENT FOR METRO SEWAGE SWAP (30 MINUTES) 3. CONTINUED DISCUSSION AND APPROVAL OF MEMO OF UNDERSTANDING WITH (60 MINUTES) OTHER AGENCIES FOR SECONDARY SEWER TREATMENT 4. CWC/HDR TREATMENT PLANT MONTHLY REPORT (15 MINUTES) 5. UPDATE REGARDING SUGGESTED INCREASE IN SEWER RATES (30 MINUTES) 6. DISCUSSION ON PROPOSAL TO EXEMPT POLITICAL BROCHURES FROM (15 MINUTES) ADVERTISING (HANDBILL) LICENSE REQUIREMENTS 7. DISCUSSION REGARDING MEBT HARDSHIP WITHDRAWALS (15 MINUTES) 8. MAYOR 9. COUNCIL THE PUBLIC IS INVITED TO ATTEND PARKING AND MEETING ROOMS ARE HANDICAPPED ACCESSIBLE