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11/01/1999 City CouncilL� 1 pprove Claim arrants laims for amages EDMONDS CITY COUNCIL APPROVED MINUTES NOVEMBER 1, 1999 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, followed by the flag salute. ELECTED OFFICIALS PRESENT Barbara Fahey, Mayor Dick Van Hollebeke, Council President Pro Tem Gary Haakenson, Councilmember Dave Earling, Councilmember John Nordquist, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember ABSENT Thomas A. Miller, Council President ALSO PRESENT Christie Lee, Student Representative APPROVAL OF AGENDA STAFF PRESENT Kevin Taylor, Assistant Fire Chief Ray Miller, Development Services Director Peggy Hetzler, Administrative Services Director Rob Chave, Planning Manager Noel Miller, Public Works Director James Walker, City Engineer Arvilla Ohlde, Parks and Recreation Director Brent Hunter, Human Resources Director Scott Snyder, City Attorney Sandy Chase, City Clerk Jeannie Dines, Recorder COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE AGENDA. MOTION CARRIED. CONSENT AGENDA ITEMS Councilmember Haakenson requested Item B be removed from the Consent Agenda. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED. The agenda items approved are as follows: (A) ROLL CALL (C) APPROVAL OF CLAIM WARRANTS #35897 THROUGH #37047 FOR THE WEEK OF OCTOBER 25,1999, IN THE AMOUNT OF $315,537.95 (D) ACKNOWLEDGE RECEIPT OF CLAIMS FOR DAMAGES FROM THERESA E. HATHAWAY ($268.57),. APRIL MEISENBERG ($1,527.77 ESTIMATE), AND CAROLYNNE KAST ($42.00) Edmonds City Council Approved Minutes November 1, 1999 Page 1 ro ect (E) UPDATE ON HIGHWAY 99 PROJECT Snowplow (F) REPORT ON BIDS RECEIVED OCTOBER 25, 1999 FOR A SNOWPLOW/HITCH AND STAINLESS STEEL V -BOX SANDER AND AWARD TO GATEWAY EQUIPMENT COMPANY, INC. ($19,210.25) Ord #3278 Application (G) ORDINANCE NO. 3278 AMENDING EDMONDS COMMUNITY DEVELOPMENT Deadline- CODE SECTION 20.00.010 PERTAINING TO THE APPLICATION DEADLINE FOR Comp Plan FILING REQUESTS TO AMEND THE COMPREHENSIVE PLAN (File No. CDC -97 -150) ublic Safety Comom munica- (H) AUTHORIZATION FOR MAYOR TO SIGN CONTRACT WITH ABA/BTS, INC. FOR don system PUBLIC SAFETY COMPLEX COMMUNICATION SYSTEM eso #963 (n RESOLUTION NO. 963 SETTING TIME, DATE AND PLACE FOR THE PUBLIC LID 215 & HEARING ON THE FINAL ASSESSMENT ROLL FOR PERRINVILLE SANITARY 216 SEWER LOCAL IMPROVEMENT DISTRICT (LID 215), AND SETTING TIME, DATE AND PLACE FOR THE PUBLIC HEARING ON THE FINAL ASSESSMENT ROLL FOR NORTH PERRINVILLE SANITARY SEWER LOCAL IMPROVEMENT DISTRICT (LID 216) Item B• Approval of City Council Meeting Minutes of October 26, 1999 Councilmember Haakenson advised the fifth paragraph under Agenda Item 3 on page 2 should read, "Human Resources Director Brent Hunter explained the Citizens Commission on Salaries of Elected Officials, the City's newest advisory board, was established to review elected officials' salaries which they have been doing over the past three weeks. Mr. Hunter commented Councilmember 14aalensei3 Van Hollebeke provided information regarding the life of a Councilperson at the October 25 public hearing." approve 10/26 COUNCILMEMBER HAAKENSON MOVED, SECONDED BY COUNCIL PRESIDENT PRO orrecteds TEM VAN HOLLEBEKE, FOR APPROVAL OF THE CITY COUNCIL MEETING MINUTES OF OCTOBER 26,1999 AS AMENDED. MOTION CARRIED. Accessory 3. PUBLIC HEARING REGARDING PROPOSED AMENDMENT& TO EDMONDS COMMUNITY Dwelling DEVELOPMENT CODE CHAPTER 20.21. A CESSORY DWELLING UNITS. THE PROPOSED Units AMENDMENTS WILL MODIFY THE EXISTING ACCESSORY DWELLING UNIT (ADU) REGULATIONS TO PROVIDE FOR A MORE TRFAMiJINED PERMIT PROCE S, ALLOW FOR CONTINUATION OF THE ADU IF THE PROPERTY IS SOLD REQUIRE THAT THE ADU NOT INCREASE THE SINGLE- FAMILY DENSITY OF THE PROPERTY, AND PROVIDE DESIGN CRITERIA TO ASSURE COMPATIBILITY WITH SINGLE - FAMILY NEIGHBOR- HOODS. Although this was a legislative matter, Mayor Fahey asked if any Councilmember wished to make a disclosure regarding the Appearance of Fairness Act. There were no disclosures made. Mayor Fahey advised staff's presentation would be followed by public comment. Planning Manager Rob Chave explained this topic was the subject of a Council study session several months ago. The item was delayed until advertising throughout the City could be accomplished. A notice regarding animal regulations as well as regarding this public hearing had been mailed to City residents. Mr. Chave explained the City currently allows accessory dwelling units (ADU) as well as renting a room within a private residence. The difference between renting a room, which requires no Edmonds City Council Approved Minutes November 1, 1999 Page 2 City review, and an ADU is that an ADU has a separate kitchen facility and a public hearing is required. He explained the Growth Management Act (GMA) requires cities to encourage new development to occur within their boundaries. One significant tool that has been researched and used by other cities and is mandated by the state is ADUs, primarily because ADUs are one of the easiest way to get additional housing due to the ease of adding an ADU to an existing house. The City's regulations, established 10- 20 years ago, allow ADUs but make the process extremely difficult. In addition to the public hearing process, there is a 2 -year waiting period for new property owners. Therefore, when a home is sold, the new purchaser cannot utilize the ADU for two years unless an economic hardship exists. The combination of the public hearing process and the two year waiting period results in residents not applying for ADUs, and possibly creating ADUs without going through the process. This creates potential enforcement situations as well as construction occurring without assurance. that it meets the City's building code. Mr. Chave explained the Planning Board considered the existing situation as a result of complaints to the City regarding the difficulty establishing an ADU and developed the draft regulations. The proposed changes are (1) ADUs would be allowed without a 2 -year waiting period, (2) the property must be owner occupied (this is not currently a requirement), (3) ADUs must adhere to design requirements such as a second entry being unobtrusive from the street, (4) rather than the current requirement that requires a hearing before the Hearing Examiner on the CUP, it would be a staff decision, and (5) one additional parking space must be provided. Mr. Chave advised notice in advance of the staff decision on the CUP would be provided and the decision can be appealed Mr. Chave recalled when the Council previously addressed this item, a question was raised regarding the City's achievement of its growth targets for GMA. He said the most recent information, dating from 1996, indicates the rate of growth in the Edmonds area was approximately two- thirds of 1% per year . (under GMA, the City was to accept approximately 1% new growth). He said although the City is not using up its housing stock as rapidly and can accommodate additional growth, a challenge could be made to the Growth Management Hearings Board that Edmonds was not doing enough to promote growth in its urban area. The goals in the City's Comprehensive Plan support single- family housing, therefore, encouraging development compatible with single- family is compatible and consistent with the Comprehensive Plan. When the Planning Board reviewed the ADU regulations, they felt strongly that this was a type of development regulation that could encourage single- family compatible development by accepting more density without impacting the single - family character of neighborhoods. Mayor Fahey opened the public participation portion of the hearing. Sonny Hancock, 1028 Cascade Lane, Edmonds, explained that shortly after they moved into their home, a home across the street was sold and a home for the elderly was established with five elderly residents. They tried for two years to have the home closed due to incidents that occurred such as one resident entering his property, falling and breaking her hip. The home has since been closed without any assistance from the City or State. He said two years ago a home abutting his backyard was sold and now five vehicles are parked in the driveway, one a commercial vehicle. A recent car fire resulted in melted rubber entering the catch basin which flows into Shell Creek. Following his complaint to the City near the first of the year, he received a letter on May 14, 1999, assigning a file #ZE9840. At that time, four individuals lived in the home although Mr. Hancock said he has seen as many as six juveniles enter the basement. He described incidents that have occurred at the residence. Edmonds City Council Approved Minutes November 1, 1999 Page 3 Brice Sepler, 747 Olympic Avenue, Edmonds, supported Mr. Hancock's comments regarding the activities that occur at this rental home. He said noise occurs from' 12:00 a.m. to -2:30 a.m. and the car fire /explosion occurred at 3:30 a.m. For clarification, Mayor Fahey observed this house was a single- family residence in a single - family community that is rented out to a number of individuals. She explained property owners have the right anywhere in the City to rent out their house. She explained this item addressed ADUs that are occupied by a second family, not rental properties. Mr. Sepler said different families appear to be living on the two levels of the house. John Larpenteur, 20423 81" Avenue W, Edmonds, observed ADUs were related to the GMA and there is a need for affordable housing, however, the current infrastructure in Edmonds does not support higher density due to reliance on automobiles. Mr. Larpenteur said his neighborhood does not have sidewalks or curbs, transit is at least '/s hour away and they are currently facing the possibility of reduced transit service, the nearest store is 3/4 mile away, and there are no bicycle routes. He recommended any property supporting more than one family be required to provide one on -site parking space for each adult resident. He said several houses in their single - family area have begun renting rooms, resulting in the additional vehicles parking on the street. Charles Warner, 2002188" Ave W, Edmonds, favored the City liberalizing the ADU regulations to allow more opportunities for housing, pointing out this allows seniors to maintain their independence as well as providing housing for students at Edmonds Community College. He concurred with staff's statement that property owners may build substandard ADUs without the City's oversight in an effort to avoid the process. He agreed with requiring a building permit to construct an ADU but did not support an ongoing permit to use the ADU. He was also concerned with the City's desire to ' treat an owner - occupied residence differently than a non -owner occupied residence as this may discourage residents from providing an ADU. Roger Hertrich, 1020 Puget Drive, Edmonds, recalled when the ADU regulations were established, a hardship situation arose that the Council reviewed and approved. He objected to the proposal to approve the CUP without a public hearing, noting a staff decision is difficult to appeal and costs money. He objected to staff's statement regarding State mandates and the City being required to provide housing, remarking that cities are not forced to provide housing and can determine what is important. He expressed concern with property owners gaining additional income, noting difficult situations could be addressed via the hardship. He said some property owners may purchase a home with the intent of using the income from the ADU to pay.the mortgage. This does not meet the intent of the original regulations, Section 2121 which states the primary purpose shall be to permit establishment in single - family residential neighborhoods to permit persons due to a disability or infirmity of old age require the assistance of friend, relatives or a nurse. A secondary purpose is to permit persons with financial hardship or persons who have occupied their residence for two years to establish an ADU: Mr. Hertrich recommended the regulations not be changed because they work now. He said detached ADUs could also be problematic. Shelly Hart, 8605 Bowdoin Way, Edmonds, objected to the proposed amendment because she did not believe the provision for the residence to be owner occupied was enforceable. She explained an apartment was constructed in the house next door to them several years ago and now both the house and Edmonds City Council Approved Minutes November 1, 1999 Page 4 the apartment are rented out and generate more traffic than any other residence on the street. She said Five Corners has met more than its share of growth. Cara Heck, 8026 184 " Street SE, Edmonds, supported ADUs, explaining she lives in a home with an ADU that is vacant due to the existing code requirements. She said the ADU could be used to accommodate family or friends who could assist her and her family. Bill Chase, 7817 193'd Place SW, Edmonds, pointed out the notice regarding this matter was addressed to "Postal Customer" and many residents likely did not read it. Further, the notice was not received until Thursday or Friday, providing only 1 -2 business days of notice of the; hearing. He explained a homeowner on their block takes in homeless youth. Mr. Chase said he has called the police numerous times due to noise around the clock but no tickets are ever issued. Mr. Chase said this neighbor charges some of the youth for staying at his home but there does not appear to be, any recourse for this situation. If this amendment would legalize this activity, he was opposed to it. He agreed with Mr. Hertrich's comment that the laws already in place are working and objected to bypassing the laws with decisions made by individual Councilmembers or administrators. Jenny Untilla, 710 7" Avenue S, Edmonds, said when they purchased their home, it had been rented for 20 years and had a kitchen in the basement and a separate utility box but they were told they could not rent the unit. She recommended the ordinance include an opportunity for reconsideration if an ADU was problematic. Rita Miller, 915 Brookmere, Edmonds, said she would like to have an ADU on her property. She recommended not only the 2 -year waiting period be eliminated but ADUs also be allowed in lower density areas of the City, not just the higher density areas. Kevin Clarke, 23924 107`h Place W, Edmonds, recalled when he and his wife rented a "boot -leg" basement apartment in downtown Edmonds early in their marriage. As he did not recall their two vehicles causing a problem, he felt requiring an additional parking stall may be onerous and should be considered on a case -by -case basis. He said he would eventually like to have his mother live in his home to allow her to maintain an independent lifestyle. He pointed out if his mother lived in an ADU on his property and did not have a vehicle, there would not be a need to provide an additional parking space. He observed the ordinance could be made more flexible to address the concerns expressed tonight. Ray Albano, 20916 76`h Avenue W, Edmonds (owner of property at 8503 Bowdoin Way), said the City's biggest problem is enforcing existing regulations. He questioned who would enforce these regulations and where the money for enforcement would come from. He objected to passing a law to address a situation without provisions for enforcement. Evelyn Elliott, 9216 240`h Street, Edmonds, said as a realtor she sees homes advertised with mother -in -. law potential and often cannot answer questions from clients about this issue. She questioned how the amendments address detached ADUs. Mayor Fahey advised clarification regarding detached ADUs would be provided at the conclusion of the public hearing.. Hearing no further comments, Mayor Fahey closed the public participation portion of the hearing. She read a letter that had been submitted to the Council from Lucien Schmidt, Jr., 545 Third Avenue S, Edmonds. He referred to the Washington Legislature's "mandate that accessory dwelling units be encouraged and allowed in single family zones. Mr. Schmidt pointed out although ADUs may appear to Edmonds City Council Approved Minutes November 1, 1999 .Page 5 be a good idea, they are actually a step backward to the 1940s and 1950s. He recommended the term "family" be defined with greater precision as the concept of an extended family is interpreted very broadly. He pointed out restrictions based on owner occupancy and occupancy by one family would be difficult if not impossible for the City to enforce. He stated attached ADUs could become townhouses allowed via administrative approval rather than CPUs. He urged the Council to find a way to preserve single - family neighborhoods in the City, pointing out amending Edmonds ADU regulations would almost certainly degrade the quality of single - family neighborhoods in the City. He questioned if the state mandate was absolute and unavoidable and how other small cities in Washington are handling this problem. Mayor Fahey also read an e-mail from Matt and Geraldine Gormley, 23117 89`h Place W, Edmonds, expressing concern with the wording of the proposed ADU regulations. The e -mail referred to paragraph 3 in the information distributed by the City that indicated ADUs were an opportunity for homeowners to gain extra income. They asked if this would allow rental to a non - family member, and if so, they felt this would not contribute to the single - family principle as it may add one or more vehicles in a vicinity that may not be able to accommodate additional parking, particularly in cul -de -sacs. The Gormleys said they have experienced this in their neighborhood. They did not support the creation of rental units in single - family homes that would be rented to non - family members. Hearing no further public comments, Mayor Fahey closed the public participation portion of the hearing. Mr. Chave said another of the proposed changes is that detached ADUs would be allowed although a public hearing on the CUP would be required. The same restrictions regarding area, appearance, etc. remain. Mr. Chave stated that much of the concern has been with rental properties versus home ownership. He pointed out an ADU that is rented or occupied by a family member may not be noticeable to the neighborhood. He explained when drafting a regulation, an attempt is made to address most situations. For example, staff felt the addition of one more parking spaces would address most parking situations that would arise. He pointed out the desire to avoid over - regulation, such as enforcing the number of residents in an ADU. Mayor Fahey referred to the comments regarding a neighbor who was accommodating several elderly adults in an assisted living situation, commenting this would constitute an adult home. Mr. Chave said the existing definition of family in the code allows up to five unrelated adults to live in a home. City Attorney Scott Snyder advised adult family homes are a required permitted use by State law in every neighborhood. Mr. Snyder advised provisions for accommodation of disabled persons were added to the City's Code in response to litigation. It was clarified that the amendment would not affect this situation. Mayor Fahey referred to the comments regarding a home that appeared to have separate families living on two levels, explaining this is allowed currently although a CUP is required and a 2 -year waiting period is required if ownership of the property changed. Mayor Fahey inquired how many individuals could live in the second unit in a home. Mr. Chave said an ADU is not to add more people to the property than is allowed under the definition of family. Mr. Snyder said the way staff has interpreted this is if a family of four related persons rents a room from the owner, they become five unrelated persons. He said the City could not constitutionally prohibit rental of a home. The City could require a business license for the rental of rooms but has not chosen to do this. Mayor Fahey asked if ADUs would be allowed in single - family residential zones with larger lots. Mr. Chave said the proposed ADU regulations are not linked to lot size although there is a restriction on the Edmonds City Council Approved Minutes November 1, 1999 Page 6 size of the living unit. He explained the provisions to allow detached ADUs was reviewed extensively by the Planning Board due to a concern there would be new construction of a detached ADU that would constitute a duplex. The Planning Board ultimately decided to try the proposed amendments with the belief there were sufficient restrictions. Mr. Snyder referred to the request by Mr. Schmidt that the. City define family and said the City Code has the maximum definition allowed in view of the U.S. Supreme Court's deference to different lifestyles and cultural and economic groups. Regarding the questions whether ADUs were mandated, Mr. Snyder explained State law does not mandate this specific language; however, the City must develop strategies to encourage affordable housing and to accept greater density within neighborhoods. He observed in a City like Edmonds that is nearly completely developed and with little remaining infill space, the City can disburse density throughout the community via ADUs while preserving the appearance of the community or rezone property to provide greater density. He said the proposed amendment .is a continuation of the existing policy not to use rezoning to add multifamily housing to the City but to disburse it throughout the City. Mayor Fahey asked Mr. Snyder to respond to enforcement of the provisions in the amendment, pointing out the City currently responds to code enforcement issues via complaints. Mr. Snyder stated one of the difficulties in determining occupancy is inspection would require a search warrant. He explained home ownership is used as a criteria, as determining residency via Metroscan ownership reports is fairly easy. Councilmember Plunkett asked if the City was not meeting the requirements of GMA because not as many people were living in the City as were projected.. Mr. Chave said a challenge could be made that something is wrong with the City's regulations that causes the City not to meet its growth projection. He said once the 20 -year planning period has been completed, the projections will be reassessed to determine if enough growth is occurring in other urban areas to accomplish growth projections. If more growth is occurring outside the urban area and Edmonds is contributing to that problem, a challenge could be made that the City's regulations are too restrictive, do not allow density and need to be changed. COUNCIL PRESIDENT PRO TEM . VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO EXTEND DISCUSSION OF THIS ITEM FOR 15 MINUTES. MOTION CARRIED. Councilmember Plunkett noted that there has been an appreciable amount of growth in Edmonds since 1996 and questioned whether the City might meet the growth projections now. Mr. Chave answered it was unlikely as average growth during that six year period was two- thirds of 1 %. In order for the City to meet the growth projections, growth from 1996 to 1999 would have to have doubled. Mr. Chave offered to prepare a matrix of other cities' regulations. Councilmember Plunkett asked if there was an appeal /review process once an ADU has been established, particularly for a detached unit, to provide an opportunity for neighbors to address problems that have arisen. Mr. Chave answered the Planning Board felt once the ADU had been established, it should continue. Mr. Chave said there are conditions in the amendment language that anytime it was felt the conditions were not met, a complaint could be filed, providing the potential for review at any time. Mr. Snyder said the City's permit review process requires a review of the conditions of issuance of a permit of this type upon the submittal of complaints from three neighbors. He said such a review is usually based on nuisance criteria or if the use fails to meet the conditions of the original approval. Edmonds City Council Approved Minutes November 1, 1999 Page 7 Councilmember Earling said one the issues he raised previously was the success and/or problems encountered by other cities with similar regulations. Mr. Chave said staff contacted a number of cities, most have regulations similar to the proposed amendments but none have done a report or reached a conclusion about the effect of allowing ADUs, primarily because the regulations have been enacted in recent years. He said Seattle staff indicated they had ,not noticed any increase in complaints related to ADUs. Councilmember Earling asked the outcome of the City taking an adversarial position to direction from the Growth Management Hearings Board to correct a deficiency in the City's growth projections. Mr. Snyder said the City's policies are to encourage affordable housing and strategies to meet growth projections. Those most likely to raise the issue would be adjacent cities when additional growth projections are made. He said the Growth Management Hearings Board could, overturn the City's Comprehensive Plan and Zoning Code and rule they were out of compliance with GMA. Being out of compliance with GMA would impact the City's ability to obtain certain funding. Councilmember Earling explained there were few options for the City to accommodate growth due to the lack of available infill and the difficulty of providing affordable housing due to the average cost of property in the City. Councilmember Earling asked what the City was doing to provide affordable housing. Mr. Chave said lifting the cap on the number of units that can be provided in the downtown BC zone was a significant step. During the past few years, regulations have been streamlined as much as possible to assist with making projects less costly. Council President Pro Tern Van Hollebeke thanked the Planning Board for the work they have done on this issue for. the past two years, noting the issue was also been reviewed by the Community Services/Development Services Committee. He referred to the information contained in the Council packet, including a report provided in October 1995 by the Municipal Research and Services Center entitled, Accessory Dwelling Units. The report describes what is an ADU, what are the reasons for it, etc. Council President Pro Tem Van Hollebeke observed his home is located in the downtown bowl area where houses were typically constructed for large families. 'He stated that the time may come when he wants to rent a portion of his 3,000 square foot home as has been done by one of his neighbors to subsidize her ability to continue ownership of her home. He said a detached ADU was constructed on the property behind his home (originally without a permit) to provide space for an elderly relative. The proposed amendment would make that legal and not have an adverse impact on the neighborhood. He pointed out the difficulty his children are finding purchasing a home and said renting from an ADU might make a home more affordable. He urged citizens to think beyond their own immediate need to what their needs might be in the future. He supported the proposed amendments. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE, TO EXTEND DISCUSSION OF THIS ITEM 10 MINUTES. MOTION CARRIED. Councilmember Haakenson asked who the staff decision would be appealed to. Mr. Chave answered the Hearing Examiner. Councilmember Haakenson asked if the Hearing Examiner's decision could be appealed to City Council. Mr. Chave answered the Hearing Examiner's decision could be appealed to the City Council but the hearing would be on the record. Councilmember Haakenson asked how many ADUs would be built in a year. Mr. Chave answered he did not know. Councilmember Haakenson said the proposed ordinance provides for a one -year review and a report on the effectiveness of the new ordinance. Mr. Chave said the Planning Board felt it was reasonable to try the amendments for a year to Edmonds City Council Approved Minutes November 1, 1999 Page 8 see how many ADUs are requested, whether there is an increase in complaints, etc. The Planning Board would then issue a recommendation to continue /change the ordinance. Councilmember Nordquist recalled there was a discussion several years ago regarding the definition of "occupancy" and whether occupancy could be the resident's furniture in a dwelling. He referred to Section 20.21.025(A)(1) which states an affidavit, signed by the property owner ... affirming that the owner occupies either the main building or the accessory dwelling unit..." and asked if consideration had been given to including "the owner's permanent and principle residence" in the affidavit. Mr. Chave said the intent was that the owner actually lives in the main building. He agreed including the words "the owner's permanent and principle residence" in the affidavit would be appropriate. Councilmember White asked where "occupied" or "occupancy" was defined. He referred to the February 23 minutes when he commented the word occupancy occurred 16 times but was not defined in the code. At that time staff indicated the occupancy would be defined for the public hearing but neither "occupied" nor "disabled" had been defined although occupancy was a very important component of the ordinance. Mr. Snyder agreed occupancy was not individually defined in the code. The proposed criteria for occupancy referenced by Councilmember Nordquist in Section 20.21.040(F) (page 6 of the ordinance) states either the primary dwelling or the accessory dwelling 'unit shall be occupied by the owner(s) of the property as the owner's permanent and principle residence and shall be occupied by said owner(s) for a minimum of 180 days each calendar year. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED- BY COUNCILMEMBER HAAKENSON, TO EXTEND DISCUSSION OF THIS ITEM FOR 5 MINUTES. MOTION CARRIED. Councilmember Earling reiterated his desire for a matrix illustrating how other cities address this issue and suggested the Council develop a list of issues for staff to research and continue the hearing to allow further discussion of this matter at a future date. Councilmember Plunkett requested staff determine what has been done over the past ten years to meet the density and affordable housing requirements of GNU. Mr. Chave said a definition of "occupancy" would also be provided. Mayor Fahey observed the critical issue was not whether the City was meeting the requirements of GMA or whether the City was required to meet those mandates but whether the City was meeting the needs of people living in the community. Council President Pro Tem Van Hollebeke requested this issue be returned to the Council prior to the end of the year (as he was not seeking re- election). ECDC 4. PUBLIC HEARING ON PROPOSED AMENDMENT TO ECDC SECTION 17.40.010(C) TO 17.40.010(C) LIMIT THE APPLICATION OF THE CITY'S ABATEMENT PROCESS TO NON - Abatement Process CONFORMING COMMERCIAL. BUSINESS: AND INDUSTRIAL USES (FILE No. CDC -98 -81 Planning Manager Rob Chave advised this amendment was enacted by the Council as an interim zoning ordinance. The Planning Board studied.the issue and forwarded their recommendation that the interim zoning ordinance become a permanent part of the Development Code. He explained Section 17.40.010 of the ordinance states, "any, commercial, business or industrial use located in a residential zone district Edmonds City Council Approved Minutes November 1, 1999 Page 0 or in the Open Space zone district shall be discontinued within fifteen (15) years after the use first becomes nonconforming." He explained the amendment is specific to commercial, business or industrial uses. He said the question has been whether the City could utilize the abatement process to address schools in residential zones. The City Attorney informed him the abatement process could not be applied to schools, churches and similar uses in residential zones but could be utilized for commercial, business or industrial uses if they occurred in residential zones. Mayor Fahey opened the public comment portion of the public hearing. Kevin Clarke, 23924 107th Place W, Edmonds, recommended "commercial" and "industrial" be specifically defined in the ordinance. He explained a privately owned cemetery in his neighborhood, an asset to the community, could be defined as a commercial use by the code. He said the Edmonds School District is utilizing the former Edmonds - Woodway High School site for offices of a division of the. school district that have nothing to do with educating children. He pointed out the former Edmonds - Woodway Elementary School is being used for storage. He said until residents complain, these type of uses continue to grow in residential zones. He questioned whether a swim and tennis club in the City would be defined as a recreational or commercial use. He reiterated his suggestion for a specific definition of commercial and industrial uses, noting many of the questionable land uses are in recently annexed areas, resulting in their being nonconforming. Councilmember Haakenson asked if the code included definitions for commercial, business, and industrial uses. Mr. Snyder answered the words that were inserted were those used when the abatement process was initiated in 1972. The purpose of using this language was to establish the abatement ordinance according to the Council's original intent, rather than open up a new legislative debate about what would be regulated. He said staff reviewed the existence of uses in the 1970s and 1980s and issued abatement notices to uses within the categories. These uses have. since been abated. He said the Webster dictionary definition would be used until the Council adopted a specific definition. Mayor Fahey observed there were business, commercial or industrial uses in residential zones in recently annexed areas of the City, some of which do not even have business licenses. Mr. Snyder said if a use was not legally established in Snohomish County, it would not be grandfathered upon annexation to the City. Mayor Fahey said her understanding was these uses were legal within Snohomish County but now exist in the City in a residential zone. Mr. Snyder said if a business was not licensed, it was not a legal use in the City. If the Council wished to initiate a review of uses in recently annexed areas, a census would be required before the uses could be abated. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO DIRECT THE CITY ATTORNEY TO PREPARE AN ORDINANCE FOR CONSENT APPROVAL PERMANENTLY ADOPTING THE CODE CHANGES ENACTED BY ORDINANCE #3247. MOTION CARRIED. Mayor Fahey declared a brief recess. itizens 5. REPORT ON FINDINGS BY THE CITIZENS COMMISSION ON SALARIES OF ELECTED Commission OFFICIALS. AND APPROVAL OF PROPOSED ORDINANCE ESTABLISHING SALARIES OF on salaries of ELECTED OFFICIALS Elected Officials Commission Member Ruth Clark named the members of the Commission, James Braun, Kevin Clarke, Ellen Ernst, Robert Noack, and Chris Fleck, and recognized that Kevin Clarke (Chair), Chris Fleck and Edmonds City Council Approved Minutes November 1, 1999 Page 10 Ellen Ernst were in the audience. She explained the Commission initially reviewed the salaries of mayors and councilmembers for all Washington cities but narrowed their focus to ' ities similar to Edmonds in the Puget Sound region. She displayed a chart showing a comparison of population, assessed valuation, budget size, and number of employees and said Auburn,. Lynnwood, Puyallup, Bothell, Renton, Bremerton, Mercer Island, and Lacey were selected as cities most similar to Edmonds. Information on the salaries and benefits of elected officials from those cities were collected and compared to Edmonds. The Commission also reviewed salary levels of employees in the City who report to the Mayor and the history of past salary increases for elected officials. Two public hearings were held to solicit public input, and although public participation was less than hoped for, those who commented stated they were pleased with the level of service provided by the elected officials. They did, however, express a concern that because of the time demands placed upon the elected officials, it appeared that only the retired and/or semi - wealthy could afford to be an elected official. The public also asked the Commission to consider benefits provided to elected officials when the salary recommendations were reached. Ms. Clark thanked citizens who participated and provided input into the establishment of compensation for elected officials. She acknowledged Councilmember Van Hollebeke for the insight he provided as a Councilperson. Ms. Clark reported the Commission recommended an annual salary of $84,000 for the Mayor and a continuation of the same benefits provided in the past at the same level as provided to Department Directors, including medical, dental, vision, and life insurance, retirement .benefit, and vacation. The Commission recommended the Mayor be given the choice of either participating with the State PERS Plan or deferring the same amount of City contribution into a deferred compensation plan. She explained the $84,000 recommended salary was approximately average or mid -point with compensation of other cities' chief executive officers (CEO). The Commission found that several (17) managers and directors in the City, receive a salary greater than the Mayor, who oversees all City employees. The Commission's recommendation places the Mayor slightly ahead of subordinates that he /she presently supervises. The Commission found that the benefits provided to the Mayor are comparable to similar positions in other cities. Ms. Clark advised the Commission recommended retaining the present Council salaries including the scheduled increase in the number of meetings, effective January 1, 2000. The Commission recommended creating a benefit allowance of $590 per month from which Councilmembers can purchase medical, dental, vision, life and disability insurance. No change is recommended in the MEBT (FICA) and Industrial Accident coverage. The Commission recommends no change in the Council President's current salary. The Commission found the present Council salaries were within the average of the other comparable cities used. They recommend continuing the present salary formula, which pays a base salary plus an additional payment for each meeting attended. The Commission believes this salary formula is a good incentive to encourage attendance for the Councilmembers. The Commission further found that the health insurance benefit for the Council and family was not a standard practice with the other cities. Although the Commission did not want to create hardship by discontinuing this benefit, they wished to make the benefit more equitable among the Councilmembers as presently - some Councilmembers take full advantage of this benefit while others only use partial benefits. The Commission recommends a $590 benefit allowance which is the present value of the insurances for all Councilmembers: Each Councilmember can use the allowance to select the insurance benefits that meet his/her needs. Ms. Clark reported the Commission recommended changing ECC Chapter 10.80 to require the. Commission submit their recommendation to the City Council by May 1" every two years rather than the Edmonds City Council Approved Minutes November I, 1999 Page 1l first Monday in November as the Code currently requires. The change will allow the City Council to review and change the salaries and benefits prior to .the filing date for candidates seeking elected positions within the City. Ms. Clark acknowledged the efforts of Human Resources Director Brent Hunter. She thanked the members of the Commission, commenting although they did not always agree on the issues before them, she appreciated their strong mutual. desire for a better Edmonds that ultimately guided them in their decisions. Council President Pro Tem Van. Hollebeke thanked the Commission for their exceedingly efficient efforts. He observed the $590 benefit allowance represented the total cost ' of the benefits offered. He .asked if the intent of establishing the $590 benefit allowance was to create parity by allowing Councilmembers to select benefits or as an incremental salary increase. Ms. Clark explained the $590 was to be used by Councilmembers to choose medical, dental, vision, disability or life insurance. She pointed out life and disability insurance had been added because some Councilmembers do not need medical, dental, or vision coverage. . Council President Pro Tem Van Hollebeke, a member of the City's self - insurance committee, said the . City's plan does not offer the ability to choose additional benefits. Mr. Hunter said the Commission recommended going outside the current benefit package if life or disability insurance was desired. Mr. Hunter advised it was preferable for the Council to pass the ordinance attached to the packet tonight. Mr. Snyder explained the State Constitution prohibits Councilmembers from increasing their salaries during their term of office. He said although the Council could pass the ordinance up until November 15 when election results are certified, he recommended it be considered tonight to avoid any appearance issues. 'He pointed out the changes would only apply to Councilmembers whose terms begin after January 1, 2000; Councilmembers completing a term will not be impacted. Council President Pro Tem Van Hollebeke clarified he was not seeking re- election (his term ended December 31, 1999) and he would not benefit from any of the proposed changes. He explained the best way to serve citizens is if the majority are provided an opportunity to run for political office. He said it was appropriate for the Mayor to be paid a salary commensurate with the demands, commenting the City represents a large business with a large number of employees and a large budget that must be overseen on a daily basis. He supported the Commission's recommendations. Councilmember Plunkett said he could.not support increasing the salaries of elected officials due to the possibility of the City facing $1.5 - $2 million in cuts to its budget if I -695 passed tomorrow. Councilmember Earling observed the Council's compensation does not change; the potential maximum . income is $350 plus the potential of seven meetings at $50 per meeting, plus the same benefits that have been provided for a maximum of $1,340 per month. He observed the only increase was in the Mayor's salary. Ms. Clark agreed. Councilmember Earling asked if the Council could condition its approval on the passage of I -695. Mr. Snyder answered the City's election results would be certified at the same time the I -695 results are certified. He was uncertain. if the Council could approve the proposed changes contingent on the passage of I -695. Councilmember White asked if the Council could pass another ordinance to rescind this ordinance. Mr. Snyder advised the Council could not reduce the salary of an elected official during his/her term of Edmonds City Council Approved Minutes November 1, 1999 Page 12 office. Councilmember White advised he intended to support the Commission's recommendation, observing their recommendation did not change the Council salary. He observed the Council is primarily self - employed individuals due to the amount of time the position requires; however, the Mayor is a full - time position that usually entails a 60 -hour week. He disagreed that a crisis created by passage of I -695 that may increase the Mayor's position to a 75 -hour week justified paying less for the position. He said if the crisis occurs, the position will warrant a higher salary; if the crisis does not occur, the Commission's findings indicate a higher salary is warranted. Mr. Snyder pointed out the Council cannot vote to increase its salary but could defer on Section 1 of the ordinance (the Mayor's salary) until the result of the election are certified. He explained, by statute, the Mayor cannot vote (in the event of a tie) on any issue that involves appropriation of money. Kevin Clarke, Chair of the Citizens Committee on Salaries of Elected Officials, said the impact of I -695 was thoroughly discussed by the Commission and they did not feel it was their responsibility to recognize this political issue. The Commission felt the public's input clearly indicated the Mayor was underpaid and has been underpaid for a number of years and now for the first time the Mayor's salary is not a political process. The Commission did not feel it was fair for the Mayor to be penalized because of the election on I -695 and the Mayor's salary should be based on what the Mayor's job is worth. Councilmember Plunkett asked how many members of the public spoke at the Commission's public hearing. Mr. Clarke answered a total of six. Mr. Clarke said everyone indicated the Mayor's salary should be increased. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO EXTEND DISCUSSION OF THIS ITEM FOR FIVE MINUTES. MOTION CARRIED. Council President Pro Tem Van Hollebeke pointed out the new Mayor could refuse the increased salary. Councilmember White disagreed the salary of the CEO of the City should be based on the passage of I- 695. He observed public officials have historically put in more time than private employees do. He explained his father was a public employee for 40+ years who worked over 40 hours each week because the public demands it of public employees, yet was paid less than a person with the same expertise was paid in the private sector. He said the outcome of I -695 was a separate issue; if it passes the Council will need to make decisions regarding budget reductions. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, . SECONDED BY COUNCILMEMBER WHITE, TO ADOPT ORDINANCE NO. 3279 WHICH INCREASES THE MAYOR'S SALARY TO $84,000 PER YEAR EFFECTIVE JANUARY 1, 2000, AND ALTERS THE METHOD OF CALCULATING COUNCIL SALARIES TO INCLUDE A BENEFIT ALLOWANCE OF $590 PER MONTH, AND TO DIRECT THE CITY ATTORNEY TO DRAFT AN ORDINANCE CHANGING THE DATE OF THE COMMISSION REVIEW TO MAY 1, 2001. MOTION FAILED; STATE STATUTE REQUIRES THE AFFIRMATIVE VOTE ` OF A MAJORITY OF THE COUNCIL FOR PASSAGE. (COUNCILMEMBERS WHITE, NORDQUIST, AND VAN HOLLEBEKE VOTED IN FAVOR, COUNCILMEMBERS PLUNKETT AND EARLING OPPOSED, AND COUNCILMEMBER HAAKENSON ABSTAINED.) Edmonds City Council Approved Minutes November 1, 1999 Page 13 Mr. Snyder advised the Councilmember who abstained must place his reason in the record. Councilmember Haakenson stated that he abstained as he felt it was not appropriate for a mayoral candidate to vote on the mayoral salary. Councilmember Haakenson referred to the comparison of Puget Sound cities and pointed out Edmonds has the second highest ratio of employees to citizens of any of the cities in the comparison. Mayor Fahey said this would be addressed in her budget message. Mr. Hunter said each year when staffing ratios are presented and compared to neighboring cities, Edmonds has fewer staff in relation to citizens. 6. AUDIENCE COMMENTS ayor's Ray Albano, 20916 76" Avenue W, Edmonds, did not object to changing the Councilmembers' salary sa'ary structure but questioned increasing the Mayor's salary from $65,000 to $84,000. He said if I -695 passes, the City will need to make strong budget adjustments, yet all Council ,and mayoral candidates have said udget they will not raise taxes. He suggested the Council save money by holding their retreat in the new Council Chambers and by not hiring any non - essential employees other than police and fire. He suggested new Councilmembers participate in the budget discussions and the newly elected mayor conduct the discussions, as they will have to live with the budget. He urged Council President Pro Tem Van Hollebeke to share his expertise with the new Councilmembers: He suggested all government downsize and economize, pointing out the Council is' elected to ensure the health, safety and welfare of the citizens. He said health, safety and welfare represented the fire and police departments. Kathleen Rois, 10725 240th Place SW, Edmonds, referred to the proposed use of the alley between Wean was I Forest Glen and Woodway Meadows, reading a letter from a neighbor who could not attend tonight's meeting. The letter stated their, fears about flooding have escalated as they watch natural protection destroyed via the demolition of the old growth forest behind Woodway Meadows to accommodate a development of expensive homes. The letter writer found this destruction incomprehensible as it came in a time when most communities have implemented requirements for developers to save or plant mature trees. The clear -cut of the Woodway forest has far reaching implications particularly related to flooding such as 1) the forest floor absorbs water run off and the removal of the trees directly contributes to increased potential for flooding, 2) the new housing development will add significant impervious surface areas thereby increasing the likelihood of flooding, 3) residents' trees, which help absorb water, that were once protected by the forest are in jeopardy now that the forest has been eliminated, and 4) paving of the alley further increases the risk of flooding and damage to trees. Ms. Rois said they recently lost a tree and outbuilding as a direct result of tree roots damaged by construction vehicles on the other side of the fence in Woodway Highlands. Ms. Rois referred to a letter from Mayor Fahey indicating nothing would be started in the alley until after the Planning Board met; however, last week it was staked in preparation for paving. She said the damage to trees and the area will be accomplished once any work begins in the alley. She invited Councilmembers to visit her home and the area. She questioned why the work was able to begin when Mayor Fahey's letter stated specifically it could not until after the Planning Board met. on Al Rutledge, 7101 Lake Ballinger Way, Edmonds, reported there would be an auction on November 12 at Richard's Restaurant from 5:00 to 9:OO,p.m. Dennis Weaver, 1024 5th Avenue S, Edmonds, requested the Council withhold approval of the Art Gazebo at 5 Commission's proposal to replace the gazebo until their process considers retention of the existing nd Main P P P g P g gazebo. He recalled the 250+ citizens who attended the visioning meetings unanimously supported the Edmonds City Council Approved Minutes November 1, 1999 Page 14 gazebo as it reflects the ambiance of the City, the vintage, the era, the comfort and recalls the sense of community. Mr. Weaver said the Arts Commission made a decision to replace the gazebo. The process was unfair and flawed because retention of the gazebo was not included in the process. Mayor Fahey pointed out there were nine people standing in the audience signifying their support of Mr. Weaver's comments. Gazebo at 5 Laurence Bleitz, 1224 7th Avenue S; Edmonds, said as a practicing engineer for 35 years, he wanted to land Main dispel the idea that the existing gazebo was unsafe and unstable. He pointed out, 1) the gazebo only needs to support itself, 2) hitting a wood gazebo (in an accident) would be less damaging than striking a brass and pipe structure, and 3) regarding the safety of gardeners, they currently work in gardens on many City corners and replacing the flowers in the gazebo would take little time and a barrier could be erected during this time. He explained in a short period of time he collected 200 signatures on petitions opposing the removal of the gazebo. There were 10 individuals who favored the Art Commission's proposal. He urged the Council to consider citizens' opinions and said erecting the "black pipe monstrosity" would generate numerous complaints. He pointed out a cartoon on the opinion page of The Edmonds Paper regarding this topic. City Attorney Scott Snyder said the Council has had a policy of discouraging public hearings during public comment and encourages a show -of hands in support of an issue. This avoids an impromptu public hearing where both sides are not represented. ebo at 5' Don Olsen, 549 Pine Street, Edmonds, said one the reasons he and his wife moved to Edmonds was the Gaz Main quaintness of the town, the gazebo, the flowers on the corners, and the atmosphere of the town. He asked if the Council realized how popular the gazebo was and asked what could be done to retain it. Mayor Fahey advised the public comment section was not an opportunity for questions and answers and Mr. Olsen agreed to contact Councilmembers individually by phone. Mayor Fahey explained the public hearing on November 30 is intended to give all citizens an opportunity to speak to the issue before a final decision is made. Gazebo at 5 Susan Steiner, 9423 215th Street SW, Edmonds, said after the unpopular fountain was installed in ndMain 1974, the Arts Commission was created in 1975 to ensure a future replacement was well liked by citizens. She said many citizens love the existing gazebo and feel it should remain. She said the Art Commission's decision should reflect the original intent of their creation. Paul Fasso, Elm Place, Edmonds, recalled Assistant Fire Chief Kevin Taylor and his family when he was a child, Councilmember Earling in previous years, and his friendship with Councilmember Van Hollebeke. Mr. Fasso said the ,City is doing too much "bean counting." Mr. Fasso expressed his frustration at not being informed of the three- minute time limit. Roger Hertrich, 1020 Puget Drive, Edmonds, agreed the cartoon in The Edmonds Paper said it all, simplicity is the best way. He said a recent Planning Board meeting, that he was unable to attend, Waterfront addressed walkways and bulkheads. Unfortunately his letter expressing his concern, with the width of the Walkway & y y p g ulkbeads walkway and his objection to a wide cement sidewalk in the natural beach area was not included in the Planning Board minutes. His discussion with those attending the meeting indicated the Planning Board was told by Parks and Recreation Director Arvilla Ohlde, after considerable public comments opposing the walkway, that the Planning Board had to include the walkway because it was in the Comprehensive Plan. Mr. Hertrich asked the Council to consider the comments made by the public to the Planning Edmonds City Council Approved Minutes November 1, 1999 Page 15 Board because it appeared those comments were generally ignored and the walkway approved. He . preferred a natural, meandering pathway that was wide enough to accommodate a wheelchair. ardroom Charles Warner, 2002188" Avenue W, Edmonds, referred to a proposal by the Seattle Skating Club � ncem on 220' to rent out space for a commercial cardroom. As a special agent for the State Gambling Commission for five years, he said a Vegas style casino in the town would be far more problematic than ADUs. He urged the Council not to let this happen, pointing out the City has the ability under State law to prohibit cardroom activity. He encouraged the Council to become informed regarding this issue and pre -empt it. oodway I Rob Nelson, 10619 240th Place SW, Edmonds, expressed concern with the proposed alley between eadows Forest Glen and Woodway Meadows. He recalled a few weeks ago it was indicated the alley would be maintained as a utility right -of -way, future access would be reviewed by the Planning Board, and neighbors would be notified of any action. He assumed a permit had been issued as there were stakes in the alley.. He reiterated this was not what had been indicated previously, and it was unfair to residents of Woodway Meadows and Forest Glen. He said without an opportunity for review by the Planning Board, any future action was pre - empted. He said residents asked Mayor Fahey to write to the contractor advising this was a short term situation or for planning for demolition of the forest but Mayor Fahey had only enough time to write residents stating she could not do that. He asked the City be fair to residents of Woodway Meadows and Forest Glen. COUNCIL PRESIDENT PRO TEM VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER WHITE, TO EXTEND THE MEETING 45 MINUTES. MOTION CARRIED. ,o Was Kevin Clarke, 23924 107th Place W, Edmonds, referred to the 20 -foot strip, stating citizens are not being treated fairly. He said a citizen outside the City is developing property outside the City, using a piece of City property given to them at no cost that does not have a designated use. By the City's inappropriate actions, the City put itself in a legal position where the street permit was granted. Mr. Clarke said Fire Marshal John Westfall has continually stated the street is not needed until houses are constructed. He said the developer will begin construction this week on something citizens have not yet had an opportunity to address in a public hearing and that was not fair. He said staff has indicated the public hearing will be delayed until after the first of the year and that was not fair. He said trees on private property are coming down because the developer is inappropriately cutting below the line and next to residents' property lines. There is standing water at the west end of the 20 -foot strip by his house right now. He expressed frustration because the Council had the authority to indicate this did not have to be built now.. He stressed once the trees were removed, residents would be left with the pavement. If it is determined through the public process that this was not appropriate, it would be too late. He urged the Council to put a moratorium on construction of the path until it is a public need which it is not at this time. He stressed there will be flooding long before there is a need for emergency access. owntown Seaun Richards, 802 Main Street, Edmonds, suggested the City and/or businesses in other areas assist Eve torTreat downtown merchants with purchasing candy they distribute on Halloween, noting some merchants indicate they spend $75 - $300 each year to purchase candy. Woodway I Sheila Nelson, 10619 240' Place SW, Edmonds, said the 20 -foot strip between Forest Glen and eadows J Woodway Meadows was supposed to be used for emergency access. She pointed out there is a 5 -foot difference between the elevation of the adjoining properties and the alley. She asked if -the area would be graded, noting the impact this would have on neighboring properties. She questioned how drainage Edmonds City Council Approved Minutes November 1, 1999 Page 16 would be affected by the difference in elevation. She felt more consideration had been given to the citizens of Woodway. ki, dway Janet Robertson, 10523 240th Place, Edmonds, said several residents attended the Woodway Planning la nds Commission meetings during the review of Woodway Highland. The Planning Commission developed 60 paragraphs of information necessary for development of this 60 -acre tract.. The Town Council considered the Planning Commission's recommendation and made several changes. The Planning Commission's recommendation indicated a need for emergency access, if not the "alley," it could be one of four adjacent, convenient outlets. The Woodway Town Council eliminated this section as they wanted a walkway to the west, which resulted in the alley. As Ms. Nelson indicated there is a 4 -foot drop now due to grading done to the edge of adjoining properties. Mayor Fahey said her letter of October 4 was in response to a request for the.City to take overt action to inform the developer of Woodway Highlands they needed to find another entrance into Woodway Highlands. Her letter to residents indicated the Mayor's office was not going to take that action at this time and clear direction had been given that the ultimate use of the right -of -way was remanded to the Planning Board for consideration. During the process that resulted in the permits for the development of Woodway Highlands, approval for the subdivision was given incorporating the right -of -way as an emergency access. Edmonds had not opposed the use of the right -of -way as emergency access; as a result, the City does not have the ability to refuse to issue permits. Mr. Snyder said it was unfair and untrue that the residents of Woodway Meadows have had no say. There were hearings before the Town of Woodway for three years that resulted in a development process that was not appealed. The developer now has vested development rights for the property; the Council has the legislative authority to vacate the property but ;to do at a time that would impact the developer's development rights is asking for an inverse condemnation suit or some other form of civil liability that would result in payment of excessive cost. In response to Ms. Rois, Councilmember Haakenson suggested she read her letter to the Woodway Town Council as many of the issues addressed were a result of action by the Woodway Town Council. Councilmember Haakenson recalled he previously asked .staff whether the paving of the area necessary for the fire access would result in removal of any trees. He asked that staff respond to this question. If the City was informed the trees would remain, then the location of the stakes indicates some trees are in peril if the alley is paved to the width indicated by the stakes. Councilmember Haakenson expressed condolences to Mr. Fasso on the passing of his brother. ( Councilmember Earling left the meeting at 10:23 p.m. due to the death of a close friend.) 000 �• PRESENTATION OF THE 2000--FRELEMNARY BUDGET relinnnary !Budget Mayor Fahey presented the year 2000 preliminary budget, commenting it was an extremely difficult budget to put together because of the cost of providing the services expected by the citizens of Edmonds continues to increase at a much higher rate than existing revenues increase. A high value is put on the quality of life we enjoy in Edmonds, and everyone elected or running for office promises to maintain it. However, they also promise to not raise taxes and fees. In a city with a really large sales tax base, these two things might be possible, but in a city like Edmonds, they are diametrically opposed. Mayor Fahey pointed out it was absolutely impossible to absorb the built -in cost increases of about 6% that occur each year without matching revenue increases. The budget may be balanced for the year, but in future years, Edmonds City Council Approved Minutes November 1, 1999 Page 17 when the cash - carry- forward has been eroded, there will not be sufficient income to offset costs. She said although the ending cash balance for 1999 is large, it is less than 1998 and will be completely used up in another year even with new revenues. Mayor Fahey said government services are labor intensive. It takes people to provide services, and those people must be paid. Of the 261 employees working for this City, 220 (84 %) are members of unions. Their salaries are negotiated by contract, and once the agreements are reached, they must be honored. The other 41 employees are classified as management. While a component of their jobs is administration, they also do much of the hands -on work that provides City services, They are the professional engineers who design and oversee City projects and respond to citizen needs even on weekends. They are the staff and directors who attend evening and sometimes weekend meetings, usually working more than 40 hours a week. She pointed out that if these individuals were in a union, those extra hours would be overtime and paid at time and a half. Instead, they are paid a flat salary, no matter how many extra hours they put in. Mayor Fahey observed every staff position in the City has been thoroughly evaluated by the Council before being authorized. The Human Resources Study confirmed the need for the staffing that was in place and recommended the addition of some specific positions, one of which was a second information. technology (IT) person. This City has a reputation for tight staffing. Mayor Fahey displayed Exhibit lA which identifies staffing levels of the different departments in 1999 and provides an historical perspective. Mayor Fahey noted the 2000 column reflected staffing levels if the budget was approved with the positions she recommended. She explained at this time, the City employs 216 people and hires some additional seasonal help in the summer. Of that number, 207 are compensated from the general fund, including seven hospital security officers whose salaries are totally reimbursed by Stevens Hospital. Mayor Fahey commented the cemetery Sexton's salary is paid out of the general fund as a result of an agreement with the Cemetery Board for the City to absorb the Sexton's salary rather than paid from cemetery revenues so that an endowment fund can be established. Of the remaining 200 employees, 106 (53 %) are police and fire service providers. The cost of public safety in the year 2000 will be $11,119,720 or 48% of the budget. She pointed' out it takes all of the property taxes and most of the sales tax to fund this service. She commented this amount reflected the addition of three battalion chiefs. Mayor Fahey observed that while public safety services are the ones citizens expect, it is the quality-of- life services the people of Edmonds treasure and it is the remaining 94 employees that make them possible. They provide excellent and timely customer services in all departments; clean and repair the streets and sidewalks; fix and maintain the storm and sewer systems; pick up the trash; tend the parks and athletic fields; provide the art and recreation programs and special events; keep the many buildings the city owns clean, safe, and in good repair (including the restrooms in the parks); and maintain the aesthetic beauty of the community: These things may not be essential services according to the strict definition (as police and fire services are), but they are not only expected, they are demanded by the people who choose to live in Edmonds. The collective salaries and benefits of all employees account for, 67% of the general fund budget. Mayor Fahey said the City has excellent directors heading the various departments, and they do everything in their power to operate in the most cost - effective manner possible. She said the estimated costs of operating the City have been reviewed scrupulously. The numbers reflect exactly what it is costs to operate in 1999, increasing by 3% unless information indicated a higher increase (the leases for copiers for example). Every year costs for supplies, copiers, and essential equipment rise, and those Edmonds City Council Approved Minutes November 1, 1999 Page 18 costs must be covered just to continue to provide the same level of service. She stressed cuts to these lines are simply unrealistic as they represent the true costs of doing business for this City. Mayor Fahey referred to staffing ratios shown on Exhibit IA, pointing out Edmonds' ratio of one staff person for every 145 citizens (1:145). She advised the number of citizens served per staff person is actually higher because the staff for the Wastewater Treatment Plant, a regional facility, is included. She pointed out Edmonds' staffing is significantly tighter than any comparable city. Mayor Fahey explained the year 2000 budget includes expenditures totaling $22.5 million, which represents a 6.8% increase ($1.44 million) over the 1999 budget (Exhibit 2C). Of this amount, $1,003,350 are fixed increases that must be covered, broken down as follows: Salaries and benefits prescribed by union contracts $591,000 New debt service on 800 MHz and SnoCom remodel bonds 165,000 Medic 7 increase 30,000 SnoIsle Library increase 25,000 Other inflationary increases (utilities, supplies, equipment) 192,350 $1,003,350 In addition, a $134,580 transfer to the street fund was budgeted. Last year the street fund transfer was made from real estate excise taxes, but this year those revenues must be retained in the parks acquisition fund. Other transfers were decreased by $6,780; therefore,,the actual new cost for interfund transfers is $127),800. The remaining $310,240 is for new positions the Council has indicated should be included in the budget. The battalion chiefs and IT position are already in place on a temporary basis subject to final approval through the budget process. The inspector position is approved subject to planning fee increases. The cost of these positions is: $208,240 for three battalion chiefs in the Fire Department, $52,000 for an IT positions which has been badly needed for several years because there is only one person trying to address all the technology needs of the City, and $50,000 for a new building inspector position, which is extremely necessary to address the enormous increase in inspection requests and will be paid for with increased fees. Over $600,000 in additional requests were made by the directors and turned down. Such things as the enhanced vehicle replacement schedule requested by the Fire Department, additional funding for needed software, programs, funding for a complete Edmonds Community Development Code rewrite that is badly needed, and the upgrade of the fire administration support position to full time, were cut even though all were justified requests. It was extremely difficult to incorporate even the required increases into the budget because the revenue increase projections are extremely low. An analysis of potential increases to existing revenues shows a total increase to some revenue lines in the total amount of $594,270. Unfortunately, other revenues are projected to decrease in the amount of $357,300, leaving a net revenue increase of only $286,650. Mayor Fahey reviewed revenue increases for property tax new construction, moneys for EMS property tax levy for new construction and increased property values, sales taxes, utility taxes, MVET, sales tax equalization, and fines and forfeitures which total $643,950. She pointed out the City will have a decrease in gambling revenue as a result of the legislature's decision to lower the amount the City can tax charitable entities. Edmonds City Council Approved Minutes November 1, 1999 Page 19 The City will end 1999 with a very strong ending cash balance of $1,271,680. This is a much - improved balance from the original estimate of $410,790. In some areas, revenues in 1999 have been much higher than anticipated, and it has not been necessary to use as much of the beginning cash balance from 1998 to cover expenses as had been expected. However, $1,563,040 was carried forward into 1999, and $345,360 has been used to cover expenses this year. A matching amount must be used to cover the same costs in the Y2000 budget before increases can be addressed. This leaves $872,320 in beginning cash, which could potentially be used to cover increases, but it is extremely risky to budget by using up all of the beginning cash. It would - leave no cushion for revenue shortfalls and nothing to take into the following year. Mayor Fahey displayed Exhibit 4E which illustrates ending cash balances assuming no new revenue sources and no increase in property tax. Mayor Fahey pointed out by the Y2001, the entire. $2,217,680 would have to be replaced with new revenues before new fixed expenses could be covered. Mayor Fahey pointed out salaries alone increase by over $500,000 each year, so over $1.75 million of expenses would not be covered by Y2001. She said as a baseline, an attempt was made to retain at least $400,000 as an ending cash balance for Y2000. This proposed budget reflects ending cash at $476,460. A combination of approximately half of the adjusted beginning cash balance of $872,320 and the new revenues of $286,650 leaves a shortage of approximately $300,000 just to cover fixed increases of $1,003,350. To cover the interfund transfer of $127,800 and the new positions, another $438,040 is required. This means well over $725,000 in new revenues must be found to maintain a status -quo budget and add the new positions that have been proposed and provisionally approved by the Council. This budget proposes that these new revenues come from a 6% property tax increase that would generate $377,000, an increase to development services fees that would generate $109,000, a garbage utility tax that would generate $190,000 and a $50 per business excise tax that would generate $82,880. Combined, these taxes would raise $758,880 in new revenues. Mayor Fahey said although she originally stated in her budget message that raising property taxes by only 3% last year permanently eliminated $176,000 in revenues, the Snohomish County .Assessor indicated the ordinance language would allow the additional 3% to be reclaimed. Mayor Fahey said if I- 695 passed, that option is eliminated in the future. She noted the ability to levy the additional 3% was not considered in the proposed budget. Mayor Fahey said the $176,000 would have been compounded forward and would have represented $186,600 additional revenues in the Y2000 budget. In addition, it would have helped offset the deficit spending the City experienced in 1999. Mayor Fahey referred to Exhibits 4G and 4H which demonstrate the effects of not raising property taxes the allowable amount each year. She stressed a budget is not truly balanced unless revenues cover expenses. Using beginning cash balances is a short-term solution, and when they have been completely absorbed, a budget deficit occurs even before new costs are factored in, as demonstrated in the graphs in Exhibit 4. She said although the City had a very strong revenue year in 1999, the reality is that Edmonds is projected to be in a deficit position in 2001 unless significant new revenues are established. She pointed out Exhibit 4D demonstrates that even with all of the proposed new revenues (a 6% increase in property taxes; the garbage tax, business excise tax, and new permit fees), a deficit would occur in 2001 if all the new positions are added. By then, other new revenues will have to be found or the City will have to face some very hard decisions regarding services. Once again, this raises the questions whether the City can continue to provide free library services, whether there is a more cost - effective way to provide emergency medical services, and why a transport fee to recoup money from insurance companies is not acceptable. Edmonds City Council Approved Minutes November 1, 1999 Page 20 Mayor Fahey said the numbers in the budget proposal represent one way of balancing the budget using the revenues indicated. However, there are other ways of balancing the budget. Other possible sources of revenue are: Raising all existing utility taxes from current levels to 6% $ 60,000 New utility tax on sanity sewers at 6% 180,000 Utility tax on pagers 30,000 Non- residential business license fee 17,000 Other types of business tax, such as a per - employee tax paid by employers ? Mayor Fahey said if the Council felt some of. the above sources were more acceptable than those proposed, they could be substituted. She stressed the importance of recognizing that some new revenue sources must be established to maintain the services in Edmonds are they are and as people seem to want them to be, just to get through Y2000. Mayor Fahey explained an alternate scenario was reviewed to determine what the budget would have to look like if no new revenues were established. In order to balance the budget, all the proposed new positions would have to be cut. If 2% across - the -board cuts were made, it would still be necessary to use $800,000 of the beginning cash to balance the budget, leaving about $528,000 ending cash. Exhibit 4G shows that by Y2001, the City would again be in a serious deficit position and the 2% cuts would again diminish the level of services offered, particularly in the Police Department which would have to absorb $119,300. Development Services would have to cut $43,000 by eliminating such things as funding for virtual reality, and Parks would lose two seasonal employees. Mayor Fahey pointed out it is not cost effective to make 2% across - the -board cuts in areas such as the Courts as they collect more revenues than it costs to operate, and those funds help cover police costs for the prosecution process. Recreation recovers most of the costs of its programs and ,classes through fees. Development Services permitting/building costs are also offset in large measure through fees. These generate approximately $1.9 million and are all accounted for in revenues. These areas are not subsidized by other general fund revenues to any great extent. Asking for a 2% or more cut in these areas is demanding that other services be covered to the detriment of the quality of service offered by revenue - generated departments where customers are paying for the services they receive. Mayor Fahey explained this budget was developed with the inclusion of the three Fire Department battalion chief positions. However, she cautioned these positions were temporarily established without an analysis of the ultimate financial effects to future budgets. She said even with the additional revenues proposed, absorbing the additional costs of these positions is not feasible. She requested the Council revisit the need for three additional battalion chiefs, pointing out of the three cities in South Snohomish County,,Edmonds is the only city with three fire stations. Each of these fire stations have 12 fire fighters assigned to it, resulting in anywhere from 9 to 12 fire fighters on duty every hour of every day. This represents a much greater staffing level than is found in either of the other two cities. Also by contrast, Lynnwood's two stations serve over a nine square mile area while Edmonds three stations serve just over eight square miles. Lynnwood is not increasing its staffing levels in response to the two - in/two -out rule and she questioned why it was necessary for Edmonds to do so. She said it would seem logical that suppression response with trucks coming from two of the City's stations, which are located much closer together than Lynnwood's stations, would approximately address the need to have at least four personnel on the scene. Edmonds City Council Approved Minutes November 1, 1999 Page 21 Mayor Fahey said there is no question there is a need for an increase in the number of people available to command an incident scene. There has been a shortage of people with this authority due to the disability leave of both the Lynnwood and Mountlake Terrace fire chiefs. However, she questioned why Edmonds must carry the financial burden of providing three when the other cities are not addressing the need. She joined with Lynnwood's Mayor Roberts in expressing her belief that these problems need to be addressed on a region -wide basis. In her opinion, Edmonds simply could not fund the costs of the three battalion chief positions and she did not support their establishment on a permanent basis for the year 2000. If the Council wished to continue the status quo until the matter, could be addressed by the three cities together, she said the battalion chiefs could be left in place as temporary positions until the long- term issue of the future budget deficit is solved. With the future budget deficit situation facing Edmonds, she felt it would be unwise to take on the burden of three new permanent employees in the Fire Department at this time. She displayed an exhibit illustrating the impact of not including the three battalion chiefs, noting the City would still be in a deficit position in 2001 although it would be only $126,000. Mayor Fahey pointed out the exhibits illustrating the City's financial position in 2001 already reflect the elimination of the $320,000 library debt services. Mayor Fahey said in the event Initiative 695 passes, the City will lose $891,660 in equalization tax revenues and $538,000 in MVET funding that is collected specifically for public safety costs. Over $1.4 million in expenses will have to be cut from the budget. If the Council opts to do no other revenue increases, over $2.1 million will have to be eliminated. This truly will mean changing the way the City operates. All special events and expendable programs will have to end, positions will have to be cut from every department, and many of the allocations that have been made to organizations will have to be eliminated. Future years will require additional cuts because revenues won't increase to cover annual fixed- expense increases. Ultimately, free library services will have to end, and the way emergency medical services are provided will have to be restructured. Mayor Fahey explained she and staff prepared a menu of options for the Council to consider should the City have to address this situation. Because people's jobs are at stake, she felt these options should not be made public until it is certain they have to be considered. If necessary, she said the options would be sent to the Council prior to the budget meeting scheduled for Saturday, November 6, after the election, when the outcome of 1 -695 is known. Mayor Fahey pointed out exhibits in the budget book explain and graphically demonstrate the draft budget. She indicated she and staff would be pleased to work with the Council and newly elected Mayor to create a final budget to meet the needs of the City next year. She hoped when the budget was completed, it would also address the needs of the City in future years. 8. MAYOR'S REPORT uag�t Mayor Fahey explained that she, like many people running for office, was convinced when she first ran for office that somehow the City's budgets were inflated and it should be possible to work with the budgets, spend less and not raise property taxes. She said over the past four years she has tried to find ways not to raise property taxes; the principle way she proposed was via the transport fee. She explained the transport fee takes money back from insurance companies that the public has paid via their insurance premiums and by not collecting a transport fee, the City is subsidizing insurance companies. Although some say this is double taxation, she argued it is anything but double taxation. She pointed out citizens pay a tax to the Hospital District to build the hospital but still pay via their insurance plans for the medical services the hospital provides. This is essentially the same situation as the EMS levy which establishes the service but does not require the City provide transport. She said the City collected Edmonds City Council Approved Minutes November 1, 1999 Page 22 1. Special Budget Meeting on Nov. 6 $200,000 from insurance companies and Medicare in nine months. If the transport fee had been in place the entire year, $266,000 would have been collected. She remarked not once during that nine -month period did she receive a complaint from a citizen whose insurance company had been billed. Approximately $600,000 would have been generated if the transport fee had remained. Each year the transport fee is not in place represents another $266,000 the City is'leaving in the insurance companies' pocketbook. As a citizen, Mayor Fahey objected to being double taxed for these services via the property taxes she pays that are used to offset these costs as well as the EMS levy. She stressed transport fees were an appropriate way to generate new revenues to balance the budget without having to raise property taxes or other fees. Mayor Fahey said she has been a proponent of considering alternate ways of providing the Medic 7 service for a long time. Although some may say providing advanced life support (ALS) in any other way would result in a diminished level of service, she stressed logic did not support that position. She explained the City has emergency response teams at every fire station that can reach citizens in 4 minutes. Yet it takes 8 minutes for paramedics to arrive which results in 8 people on site to provide medical services. She pointed out if there was an EMT and a paramedic in every station, ALS could be provided within 4 minutes rather than 8 minutes and it could be provided in a more cost effective manner. Mayor Fahey said the Medic 7 system was developed 25 years ago when there was less demand and before.two complete units were necessary to meet the needs of the population. Mayor Fahey stressed the City, cannot continue to be operated in a manner that is no longer cost effective or efficient. She urged the Council to determine how new revenues can be generated and how services can be provided in the most cost effective and efficient manner without diminishing levels of service. 9. COUNCIL REPORTS Council President Pro Tem Van Hollebeke reminded the Council of the budget meeting scheduled for Saturday, November 6 at 9:00 — 11:00 .a.m. in the City Hall Great Room. He asked if the Council preferred to have the directors attend the meeting. It was the consensus of . the Council to have the directors attend the budget meeting. With no further business, the Council meeting was adjourned at 11:20 p.m. BARBARA O. ,jJ SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes November 1, 1999 Page 23 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. NOVEMBER 1, 1999 SPECIAL MONDAY MEETING 7:00 P.M. - CALL TO ORDER FLAG SALUTE 1. APPROVAL OF AGENDA 2. CONSENT AGENDA ITEMS (A) ROLL CALL (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF OCTOBER 26, 1999 (C) APPROVAL OF CLAIM WARRANTS #35897 THROUGH #37047 FOR THE WEEK OF OCTOBER 25, 1999, IN THE AMOUNT OF $315,537.95 (D) ACKNOWLEGE RECEIPT OF CLAIM FOR DAMAGES FROM THERESA E. HATHAWAY ($268.57), APRIL MEISENBURG ($1527.77 ESTIMATE) AND CAROLYNNE KAST ($42.00) (E) UPDATE ON HIGHWAY 99 PROJECT (F) REPORT ON BIDS RECEIVED OCTOBER 25, 1999 FOR A SNOWPLOW /HITCH AND STAINLESS STEEL V -BOX SANDER AND AWARD TO GATEWAY EQUIPMENT COMPANY, INC. ($19,210.25) (G) PROPOSED ORDINANCE AMENDING EDMONDS COMMUNITY DEVELOPMENT CODE SECTION 20.00.010 PERTAINING TO THE APPLICATION DEADLINE FOR FILING REQUESTS TO AMEND THE COMPREHENSIVE PLAN (File No. CDC -97 -150) (H) AUTHORIZATION FOR MAYOR TO SIGN CONTRACT WITH ABA/BTS, INC. FOR PUBLIC SAFETY COMPLEX COMMUNICATION SYSTEM (1) PROPOSED RESOLUTION SETTING TIME, DATE AND PLACE FOR THE PUBLIC HEARING ON THE FINAL ASSESSMENT ROLL FOR PERRINVILLE SANITARY SEWER LOCAL IMPROVEMENT DISTRICT (LID 215) (J) PROPOSED RESOLUTION SETTING TIME, DATE AND PLACE FOR THE PUBLIC HEARING ON THE FINAL ASSESSMENT ROLL FOR NORTH PERRINVILLE SANITARY SEWER LOCAL IMPROVEMENT DISTRICT (LID 216) 3. (60 Min.) PUBLIC HEARING REGARDING PROPOSED AMENDMENTS TO EDMONDS COMMUNITY DEVELOPMENT CODE CHAPTER 20.21, ACCESSORY DWELLING UNITS. THE PROPOSED AMENDMENTS WILL MODIFY THE EXISTING ACCESSORY DWELLING UNIT (ADU) REGULATIONS TO PROVIDE FOR A MORE STREAMLINED PERMIT PROCESS, ALLOW FOR CONTINUATION OF THE ADU IF THE PROPERTY IS SOLD, REQUIRE THAT THE ADU NOT INCREASE THE SINGLE - FAMILY DENSITY OF THE PROPERTY, AND PROVIDE DESIGN CRITERIA TO ASSURE COMPATIBILITY WITH SINGLE - FAMILY NEIGHBORHOODS. 4. (15 Min.) PUBLIC HEARING ON PROPOSED AMENDMENT TO ECDC SECTION 17.40.010(C) TO LIMIT THE APPLICATION OF THE CITY'S ABATEMENT PROCESS TO NON - CONFORMING COMMERCIAL, BUSINESS, AND INDUSTRIAL USES (File No. CDC- 99 -81) 5. (20 Min.) REPORT ON FINDINGS BY THE CITIZENS COMMISSION ON SALARIES OF ELECTED OFFICIALS, AND APPROVAL OF PROPOSED ORDINANCE ESTABLISHING SALARIES OF ELECTED OFFICIALS 6. AUDIENCE COMMENTS (3 Minute Limit Per Person) 7. (30 Min.) PRESENTATION OF THE 2000 PRELIMINARY BUDGET 1 CITY COUNCIL MEETING AGENDA NOVEMBER 1, 1999 Page 2 8. (5 Min.) MAYOR'S REPORT 9. (15 Min.) COUNCIL REPORTS Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at (425) 771 -0245 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 46 Delayed telecast of this meeting appears the following Wednesday at noon and 7: 00 p.m.,. as well as; Friday and Monday at noon on Channel 46