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08/06/1996 City Council1 EDMONDS CITY COUNCIL APPROVED MINUTES AUGUST 6, 1996 Following a special meeting at 6:45 p.m. to interview a candidate for the Planning Board, the Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Barbara Fahey in the Library Plaza Room, 650 Main Street. The meeting was opened with the flag salute.. ELECTED OFFICIALS PRESENT Barbara Fahey, Mayor Dave Earling, Council President Tom Petruzzi, Councilmember John Nordquist, Councilmember Roger L. Myers, Councilmember Dick Van Hollebeke, Councilmember Gary Haakenson, Councilmember ABSENT Jim White, Councilmember "TIAAW OX05►11 STAFF PRESENT Paul Mar, Community Services Director Art Housler, Administrative Services Director James Walker, City Engineer Brent Hunter, Personnel Manager Joan Ferebee, Court Administrator Scott Snyder, City Attorney Sandy Chase, City Clerk Jeannie Dines, Recorder ALSO PRESENT Alex Moore, Student Representative Addition I Mayor Fahey stated that Art Housler, Administrative Services Director, requested Items 4 and 5 on the Ito Agenda agenda be reversed. Mayor Fahey requested a discussion regarding creation of summary minutes of Executive Sessions be added as Item 8a. Further, she requested a brief Executive Session be added at the conclusion of the meeting for discussion of a legal matter. COUNCILMAN MYERS MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO ADOPT THE AGENDA WITH THE RECOMMENDED CHANGES AS OUTLINED. MOTION CARRIED. COUNCIL PRESIDENT EARLING MOVED, SECONDED BY COUNCILMEMBER PETRUZZI, FOR APPROVAL OF THE CONSENT AGENDA. MOTION CARRIED. The items passed are as follows: (A) ROLL CALL A prove aces (B) APPROVAL OF MINUTES OF JULY 30,1996 rove (C) APPROVAL OF CLAIM WARRANTS #9184S THRU #11659F FOR THE WEEK OF ite JULY 29, 1996 IN THE AMOUNT OF $208,203.26 Edmonds City Council Approved Minutes August 6, 1996 Page I Claim for Damages Water Line Program Ord. 3106 Public Safety Facilities Bonds (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM DEVON E. DRAKE ($120.00) (E) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1996 WATER LINE REPLACEMENT PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT 3. AUDIENCE Roger Hertrich, 1020 Puget Drive, Edmonds, distributed a copy of the RCW section regarding Open Public Meetings and Executive Sessions. He thanked Mayor Fahey for allowing public access to the ferry dock Findings of Fact and a letter dated July 16 from Washington State Ferries to Mr. Mar. He did not feel the discussion of the letter or the Findings of Fact in Executive Session met the test outlined in the RCW as the information did not address litigation. He felt the public trust had been violated and suggested the information discussed at the July 16 meeting be available for public review. 4. ORDINANCE NO 3106 ISSUING $9 275,000 IN GENERAL OBLIGATION BONDS FOR CONSTRUCTION OF PUBLIC SAFETY FACILITIES Administrative Services Director Art Housler explained that on March 25, 1996, the City Council adopted Ordinance No. 3077 calling for a special election to authorize issuance and sale of general obligation bonds totaling $9,275,000 which the voters approved on May 21, 1996. He explained he met with Dick Ehlers, Vice President of Seattle Northwest Securities, on Tuesday morning (August 6, 1996) to do the pricing of the bonds. Dick Ehlers, Vice President of Seattle Northwest Securities, explained the documentation before the Council included a report as well as a formal written offer to purchase the bonds. The goal of the sale of the G.O. bonds was to 1) fund construction of the Public Safety Facilities, 2) maintain the City's A-1 bond rating, 3) qualify the issue for bond insurance, 4) structure the issue with a level tax rate over 20 years at a rate below $0.30 per $1,000, and 5) obtain aggressive market rates. Moody's Investors Corporation confirmed the City's A-1 bond rating, the issue was qualified for insurance with four firms but, based on current market conditions, it was decided to not purchase the bond insurance (a savings of approximately $28,000). Mr. Ehlers described the favorable market conditions which resulted in a net borrowing cost of 5%Z percent (5.495393%) and a tax rate of between $0.27 and $0.29 per $1,000 which is flower than the cost quoted to voters. Mr. Ehlers described the reoffering yield and directed the Council's attention to a comparison of similar issues by the Port of Everett and the City of Mercer Island. The only change from the draft of the written offer to purchase the bonds was the addition of on -going disclosure as required by the Securities Exchange Commission. Mr. Housler directed the Council's attention to the recommendation from Robert Yeasting, Yeasting & Hughes Associates, Municipal Advisors, that the City accept the purchase offer of Seattle Northwest Securities for the G. O. Bonds. (Mr. Yeasting was unable to attend the Council meeting due to vacation.) Lee Voorhees of Foster Pepper and Shefelman reviewed the ordinance, highlighting the registration of the bonds, addition of the interest rate, mandatory calls, and disclosure as required by the Securities Exchange Commission. He advised that the ordinance, including the Bond Purchase Contract, appeared to be in an appropriate form for the Council's favorable action. . Edmonds City Council Approved Minutes August 6, 1996 Page 2 1 Mr. Housler agreed with Mr. Yeasting's recommendation and recommended approval of the ordinance. Councilmember Petruzzi complimented Mr. Housler on the outstanding job he does for the City. He also thanked Mr. Ehlers and Mr. Voorhees for their assistance in this matter. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCIL PRESIDENT EARLING, IN AGREEMENT WITH MR YEASTING'S RECOMMENDATION IN HIS LETTER OF AUGUST 6,1996, FOR PASSAGE OF ORDINANCE NO.3106. The ordinance title is as follows: ORDINANCE NO: 3106 OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS; PROVIDING FOR THE ISSUANCE, SPECIFYING THE MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF S9,275,000 PAR VALUE OF UNLIMITED TAX GENERAL OBLIGATION BONDS, 1996, AUTHORIZED BY THE QUALIFIED VOTERS OF THE CITY AT A SPECIAL ELECTION HELD THEREIN PURSUANT TO ORDINANCE NO. 3077; ESTABLISHING A BOND REDEMPTION FUND AND A PROJECT FUND; AND APPROVING THE SALE AND PROVIDING FOR THE DELIVERY OF THE BONDS TO SEATTLE-NORTHWEST SECURITIES CORPORATION OF SEATTLE, WASHINGTON. Councilmember Myers recognized the efforts of the citizen group who worked toward the passage of this bond issue. MOTION CARRIED. Ord. 3107 5. ORDINANCE NO 3107 ISSUING LOCAL IMPROVEMENT DISTRICT (LID) 214 BONDS LID 214 IMPROVING STORM DRAINAGE AND STREET SYSTEMS a8 Administrative Services Director Art Housler stated the Council adopted Ordinance No. 2086 on March 16, 1996, approving and confirming the final assessment and assessment roll. He explained the total cost of the project was $296,657.07 of which $23,210.66 was funded from the Combined Utility Construction Fund #412. Prepayments totaled $59,502.97, leaving a balance of $213,944.19 to be borrowed. Pricing of those bonds was also done on Tuesday morning (August 6, 1996). Dick Ehlers, Vice President of Seattle Northwest Securities, explained the marketing of LID bonds takes longer, due in part to the lack of a specific maturity date. Approximately one-half of the bonds had been sold. Based on a ten year term, the expected maturity rate was 5.8855 percent, an attractive rate to fund these improvements. He pointed out the report provided to the Council included a comparison of LID bonds marketed by the City of Issaquah recently which have a rate identical to those being marketed by Edmonds. Mr. Housler noted Robert Yeasting, Yeasting & Hughes Associations, Municipal Advisors, recommended acceptance of the purchase offer from Seattle Northwest Securities for the LID bonds. Lee Voorhees of Foster Pepper and Shefelman, reviewed the ordinance noting Section 13 of the ordinance includes a provision for approval, execution and delivery of the purchase contract. He noted the LID bond will have printed certificates. He advised the transaction appeared to be in order and recommended the Council's favorable consideration and passage of the ordinance. COUNCIL PRESIDENT EARLING MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, FOR PASSAGE OF ORDINANCE NO. 3107 IN ACCORDANCE WITH THE RECOMMENDATION IN ROBERT YEASTING'S LETTER FOR PASSAGE OF THE ORDINANCE. MOTION CARRIED. The ordinance title is as follows: Edmonds City Council Approved Minutes August 6, 1996 Page 3 ORDINANCE 3107 OF THE CITY OF EDMONDS, WASHINGTON RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 214; FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, MATURITY AND DENOMINATIONS OF THE LOCAL IMPROVEMENT DISTRICT NO. 214 BONDS; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO SEATTLE- NORTHWEST SECURITIES CORPORATION IN SEATTLE, WASHINGTON; AND FIXING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 214 ASSESSMENT INSTALLMENTS. Mayor Fahey expressed her thanks and appreciation for the guidance and assistance provided by everyone involved. Mr. Housler noted the bond closing would take place on August 21, 1996. Mayor Fahey declared a brief recess at this time. Pro Tem 6• APPROVAL OF PROFESSIONAL SERVICES CONTRACT WITH DQUGLAS J. FAIR FOR PRO Judge Contract TEM JUDGE Joan Ferebee, Court Administrator, explained an emergency Judge Pro -Tern contract was necessary on July 19. Municipal Court Judge Conroy suggested attorney Douglas Fair be considered as an additional alternative for pro-tem services. Ms. Ferebee requested approval of the July 19 emergency contract as well as the contract for services from July 19 to December 31, 1996. Councilmember Myers asked how often Mr. Fair's services would be used. Ms. Ferebee replied they would be utilized approximately twice a year. COUNCIL PRESIDENT EARLING MOVED, SECONDED BY COUNCILMEMBER HAAKENSON, FOR APPROVAL OF PROFESSIONAL SERVICES CONTRACTS WITH DOUGLAS F. FAIR FOR PRO TEM JUDGE AND AUTHORIZATION FOR MAYOR TO SIGN CONTRACTS. MOTION CARRIED. Five 7. REPORT AND DISCUSSION OF BID ALTERNATIVES FOR THE FIVE CORNERS WATER Cornerster TANKS EXTERIOR REPAINTING PROJECT wa Tanks City Engineer James Walker explained the water tank painting was bid with alternatives —painting the tank with a single coat of a similar color or painting the tank with graphics. The bid for the single coat of paint is significantly less than the bid for the graphics. He said the graphics were not recommended at this time. Councilmember Van Hollebeke noted that while most of the citizen's comments favored graphics, many favored planting trees. He asked if the difference in bids between the single coat of paint, and the graphics would fund real trees. Mr. Walker answered there are several access points on the tank that must be kept clear, although there were some areas around the tank where trees could be planted for additional screening. He suggested planting of trees be delayed until it is determined what will be done on the Fire Station property. For Councilmember Myers, Mr. Walker advised the cost to add graphics at a future date would be approximately $10,000 more than was bid at this time. For Councilmember Petruzzi, Mr. Walker advised J. Jones Painting was the low bidder and staff had received good references on that firm. Edmonds City Council Approved Minutes August 6, 1996 Page 4 COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MYERS, THAT THE CITY COUNCIL AWARD A CONTRACT TO J. JONES PAINTING FOR A TOTAL OF $56,491.22 FOR SCHEDULE 1. Council President Earling pointed out the public surveys distributed by staff revealed many citizens preferred the graphics. Although he would usually follow the public's desires, the difference in the cost—$56,491.22 for the single coat and $84,000 - $89,000 for the three color graphics —was the determining factor. MOTION CARRIED. council 8, REVIEW OF CITY COUNCIL COMPENSATION Compensa- tion Council President Earling explained this issue was previously discussed by the Council and was brought back for further discussion of 1) the number of committee meetings that qualify for the $50 payment and 2) consideration of adjustment to the $350/month stipend or $50 per meeting rate. He referred to the information previously provided comparing Council compensation packages for similar size cities in Washington. Council President Earling suggested committee name changes for the Tourism Committee/Visitor Information Center to "Edmonds Alliance for Economic Development" and of the Salary Review Committee/Salary Task Force to "Comprehensive Human Resources Committee". Further, he recommended the Port District Meeting be added to the list of meetings eligible for compensation, due to the importance of many port issues to the City. Councilmember Petruzzi referred to the comparison of Council compensation packages for other cities, noting he felt Edmonds was in line with other cities, particularly in view of the benefit package offered by Edmonds. He was opposed to an increase in Council compensation at this time. He favored retaining the number of meetings eligible for compensation at seven and agreed with amendments to committee names and the addition of the Port -District meeting, as outlined by Council President Earling. Councilmember Myers agreed with the addition of the Port District Meeting and pointed out there were meetings listed in the ordinance for which the City did not provide compensation, such as the Snohomish Health District. Council President Earling agreed to delete Snohomish Health District and Regional Transportation Authority (RTA) from the list of meetings eligible for compensation as Councilmembers are not currently compensated for those meetings. Councilmember Van Hollebeke questioned whether compensation was appropriate for meetings with a short duration such as the adult entertainment issue. Council President Earling pointed out the ordinance authorized the Council President to approve compensation for additional meetings to be attended by Councilmembers. Councilmember Van Hollebeke suggested the number of meetings eligible for compensation be increased to eight or nine. Councilmembers Haakenson and Myers supported such • an increase. Councilmember Petruzzi reiterated his opposition to an increase in the number of meetings eligible for compensation. Edmonds City Council Approved Minutes August 6, 1996 Page 5 COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER HAAKENSON, TO INCREASE THE NUMBER OF MEETINGS ELIGIBLE FOR COMPENSATION PER MONTH TO EIGHT. MOTION CARRIED, COUNCILMEMBER PETRUZZI AND COUNCIL PRESIDENT EARLING OPPOSED. City Attorney Scott Snyder clarified the number of meetings eligible for compensation would be increased to eight and the $350 maximum meeting compensation amount increased to- $400; the $350 monthly Council stipend would remain. Further, he noted the changes would not affect the present Council as a legislative body cannot vote to increase their own salaries, compensation changes would affect Councilmembers assuming office after the next election. Executive 8a. CONSIDERATION OF CREATION OF SUMMARY MINUTES OF EXECUTIVE SESSIONS Session Minutes City Attorney Scott Snyder advised that following a number of recent Executive Sessions, several citizens contacted the City and asked for minutes from the Executive Session, in some cases stating there is a statutory requirement that the Council maintain minutes of Executive Session. His firm's position is that there is no statute or case law requiring minutes of an Executive Session, although approximately one-third of Washington cities maintain summary minutes of Executive Session. Such minutes are not released to the public until the purpose of the Executive Session has expired. Minutes of Executive Sessions would provide the public a record of the topics discussed in Executive Session as well as a record of verbally issued instructions by the Council. Further, such minutes would assist in reconstructing the record in the event of legal action. He noted staff was concerned with sensitive subject matters, discussed in Executive Session, being in writing. Mr. Snyder stressed the City Clerk would maintain a separate file of Executive Session minutes which could only be reviewed once the purpose of the Executive Session had expired. Councilmember Petruzzi asked if litigation strategy would be held in complete confidence until all appeals were exhausted. Mr. Snyder answered yes. Councilmember Petruzzi was in favor of the creation of summary minutes of Executive Sessions. Councilmember Myers agreed and asked who would create the minutes. Mr. Snyder advised that was a decision the Council would make; he would be happy to assist with the creation of minutes. Student Representative Alex Moore also favored the creation of minutes of Executive Session. It was the consensus of the Council to create summary minutes of Executive Sessions. Mr. Snyder advised he would prepare a Resolution for the next Consent Agenda. 9. MAYOR At the request of Mayor Fahey, the following motion was made: Planning Haard aPpoin°- COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER MYERS, TO ment CONFIRM THE APPOINTMENT OF JOHN DEWHIRST TO THE PLANNING BOARD. MOTION CARRIED. Mayor Fahey said there was a number of qualified citizens who responded to the advertisement for this position. On behalf of the Planning Board, she thanked all those who applied, noting the selection of one citizen was a difficult decision. Edmonds City Council Approved Minutes August 6, 1996 Page 6 0 ante of Mayor Fahey announced the Taste of Edmonds, which is sponsored by the Chamber of Commerce along dmonds with the support of several other organizations including the City, will take place Friday, August 9 through Sunday, August 11. The City's parking lot will be closed Wednesday through next Tuesday; alternate arrangements have been made for employee parking. Public parking is available on Bell Street. Adult Mayor Fahey reminded citizens of the Planning Board's public hearing regarding Adult Entertainment Enter- tainment (sexually oriented businesses) on August 14 at 7:00 p.m. in the Library Plaza Room. The purpose of the public hearing is to gather information on the secondary effects of this type of business on the community and establish a record of efforts to establish zoning to make reasonable accommodation for such businesses in the City. She encouraged citizens to attend. Mayor Fahey reminded everyone of the Sunday Concerts in the Park and Youth Concerts at the Anderson Center. Mayor Fahey advised 15 exchange students and two teachers from Hekinan would be visiting Edmonds this week and encouraged citizens to make them feel welcome. Mayor Fahey announced she would be on vacation Friday, August 9 until Monday, August 19. Council President Earling would serve as the Mayor Pro Tem. in her absence and Mr. Mar would oversee administration. 10. COUNCIL Student Representative Alex Moore encouraged everyone to visit the -Taste of Edmonds. He will be working at one of the gates as a representative of the Meadowdale Key Club. He indicated he would be absent from the August 21, City Council meeting due to a trip with his Young Life Group. sxeautioe 11. EXECUTWVE SESSION Session Mayor Fahey declared the Council recessed to Executive Session at 8:37 p.m. City Attorney Scott Snyder advised the purpose of the Executive Session was discussion of a potential appeal and authorization by the Council for legal action. Mayor Fahey advised the Council meeting would be adjourned immediately following the Executive Session. ARBARA S. FAHEY, MAYOR L �,.OH SE�% CamCTYIT.. SANDRA S. ; TERK." Edmonds City Council Approved Minutes August 6, 1996 Page 7 AGENDA ' EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. AUGUST 6, 1996 SPECIAL MEETING CALL TO ORDER - 7:00 P.M. FLAG SALUTE 1. APPROVAL OF AGENDA 2. CONSENT AGENDA ITEMS (A) ROLL CALL (B) APPROVAL OF MINUTES OF JULY 30, 1996 (C) APPROVAL OF CLAIM WARRANTS #9184S THRU #11659F FOR THE WEEK OF JULY 29, 1996 IN THE AMOUNT OF $208,203.26 (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM DEVON E. DRAKE ($120.00) (E) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1996.•WATER LINE REPLACEMENT PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT 3. AUDIENCE (3 minute limit per person) 4. (10 Min.) PROPOSED ORDINANCE ISSUING LOCAL IMPROVEMENT DISTRICT (LID) 214 BONDS IMPROVING STORM DRAINAGE AND STREET SYSTEMS 5. (20 Min.) PROPOSED ORDINANCE ISSUING $9,275,000 IN GENERAL OBLIGATION BONDS FOR CONSTRUCTION OF PUBLIC SAFETY FACILITIES 6 (5 Min.) APPROVAL OF PROFESSIONAL SERVICES CONTRACTS WITH DOUGLAS J. FAIR FOR PRO TEM JUDGE 7. (10 Min.) REPORT AND DISCUSSION OF BID ALTERNATIVES FOR THE FIVE CORNERS WATER TANKS EXTERIOR REPAINTING PROJECT 8. (15 Min.) REVIEW OF CITY COUNCIL COMPENSATION 9. (5 Min.) MAYOR 10. (15 Min.) COUNCIL Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at 771-0245 with 24 hours advance notice fop special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. Delayed telecast of this meeting appears the Following Wednesday, Friday and Monday at noon on Channel 32.