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.