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12/10/1991 City CouncilTHESE MINUTES SUBJECT TO DECEMBER 17 APPROVAL EDMONDS CITY COUNCIL WORK MEETING MINUTES December 10, 1991 The meeting of the Edmonds City Council was called to order at 7:00 p.m. by Mayor Larry Naughten at the Library Plaza Room, 650 Main Street. All present joined in the flag salute. PRESENT Larry S. Naughten, Mayor Jack Wilson, Council President Steve Dwyer, Councilmember Roger Hertrich, Councilmember Bill Kasper, Councilmember John Nordquist, Councilmember Jeff Palmer, Councilmember ABSENT Jo -Anne Jaech, Councilmember STAFF Art Housler, Admin. Serv. Director Brent Hunter, Personnel Manager Peter Hahn, Comm. Serv. Director Bob Alberts, City Engineer Noel Miller, Public Works Supt. Dick Mumma, Building Official Buzz Buzalsky, Fire Chief Mike Springer, Asst. Fire Chief Scott Snyder, City Attorney Barb Mehlert, Recorder Mayor Naughten called for a brief Executive Session to be held prior to the Council entering their respective committee meetings. Mayor Naughten noted it was of a legal nature. CONSENT AGENDA Item (B) was removed from the Consent Agenda, November 26, 1991 Council Minutes only. COUNCILMEMBER PALMER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The approved items on the Consent Agenda include the following: (A) ROLL CALL (B) APPROVAL OF MINUTES OF DECEMBER 2, 1991 AND MINUTES OF DECEMBER 3, 1991. APPROVAL OF MINUTES OF NOVEMBER 26 1991 (Item (B) on the Consent Agenda) Councilmember Palmer noted a correction on page 4, under 1992 Budget Discussion. Councilmember Palmer noted it should read "Mayor Naughten noted the revenues were overestimated at approximately $250,000." COUNCILMEMBER PALMER MOVED, SECONDED BY COUNCILMEMBER KASPER, TO APPROVE ITEM (B) WITH THAT CORRECTION NOTED. MOTION CARRIED. Council President Wilson asked that Finalization of 1992 Budget be discussed before the Proposed Ordinance Levying 1992 Property Taxes. FINALIZATION OF 1992 BUDGET AND PASSAGE OF ORDINANCE 2856 ADOPTING BUDGET Mayor Naughten read a statement into the record concerning the 1992 Budget. Mayor Naughten said as a result of the $719,000 EMS Levy failure on November 5, 1991, and the necessity to readjust 1992 revenue projects, the City Council voted December 2, 1991 to reduce the 1992 General Fund Budget by $1,090,000. Mayor Naughten noted that because of these 1992 Budget impacts, it was necessary to take major steps to reduce the overall size of Edmonds' City government for 1992. The revised budget now includes a reduction of seven full-time employees from the proposed 1992 Preliminary Budget. Mayor Naughten said, in addition, salaries for part-time help in the Grounds Maintenance Section has been reduced by $22,000; salaries for part-time help in Community Services Administration has been reduced by $6,160; salaries for part-time help in Engineering has been reduced by $5,000; and the General Overtime has been reduced by $7,000 for a total of $40,160. Councilmember Palmer said it is his understanding the seven full-time positions that have been reduced will primarily be through attrition, and Mayor Naughten responded affirmatively; however, he said there is one position that was a filled position. The Council proceeded to discuss and review the proposed 1992 Budget. Councilmember Palmer inquired if the flower basket program could be funded through the 125 Fund, and Community Services Director, Peter Hahn, noted City Attorney Scott Snyder addressed this issue and said it was Mr. Snyde►'s opinion that Fund 125 could be used for the flower basket program. Mr. Snyder said Fund 125 can be used for any capital improvement that is authorized for an LI.D. Mr. Snyder said both landscaping and public places are noted with the 125 Fund as approved purposes. Mr. Snyder said real estate excise tax money should be used only for public projects that have been on the CIP; however, the City has recently spent a great deal of money from the CIP to resurface streets, put in sidewalks, and install light posts. Mr. Snyder said the basket program is confined within public places, and Mr. Snyder said his reading of the statute would authorize public funds for the purpose of continuing the flower basket program. Mr. Snyder said the City should be careful in funding the entire flower basket program from Fund 125, however, because the program has never been on the CIP before. Mayor Naughten noted that $22,000 has been eliminated from Grounds Maintenance which represents manpower for the flower basket program, so in effect there will be no money to maintain the flower baskets even if Fund 125 provided for the balance of the program. Councilmember Hertrich noted he has a breakdown of the flower program costs as of January 28, 1991. Councilmember Hertrich said it is a very comprehensive list, and stated the labor for the flower program is very high and he doubts Fund 125 would provide for this. Mr. Snyder said it seems clear from the way the statute is worded, that some portion of the flower program among a number of other projects would be eligible for the use of the funds. Mr. Housler said Mr. Hahn determined that $13,000 of the flower program could be funded from the 125 Fund, which is currently in the budget. Councilmember Hertrich asked if that included labor, and Mr. Housler replied $17,000 would include labor. The Council proceeded to discuss the Budget Overview, and Councilmember Dwyer inquired on the calculations pertaining to Revenues Property Tax for 1990 and 1991. Councilmember Dwyer asked what the $405,500 represented and discussion ensued on this matter. Councilmember Dwyer asked if the $405,500 represented the difference over the three-year period and not the sum of 1992, and City Attorney Snyder replied affirmatively. COUNCIL PRESIDENT WILSON MOVED, SECONDED BY COUNCILMEMBER PALMER THAT THE MAYOR'S PROPOSAL GIVEN TO THE COUNCIL TONIGHT AS THE 1992 BUDGET BE APPROVED. COUNCIL PRESIDENT WILSON FURTHER ASKED THAT THE MAYOR'S PROPOSAL BE ALTERED TO REFLECT THAT THE DOLLARS FROM THE PASSING OF THE 1991 106% PROPERTY TAX INCREASE FLOW DIRECTLY TO THE GENERAL FUND AND THAT THE EQUIVALENT AMOUNT OF MONEY REFLECTING THE GENERAL FUND CUTS TO BALANCE THE BUDGET BE PLACED IN THE COUNCIL CONTINGENCY FUND. Under discussion, Councilmember Hertrich said he was opposed to raising the taxes for 1990 and 1991. Councilmember Hertrich said that this would in effect put $405,000 into the City's reserves, which Councilmember Hertrich feels is too high. Councilmember Hertrich stated that he has not been part of the negotiations or decision making with regards to this budget. Councilmember Hertrich said it is his feeling that Council President Wilson, Councilmember Palmer and Councilmember Kasper took the lead and feels he was excluded with the exception of a comment passed on to him. Councilmember Hertrich said he voted for the 106% increase three years ago and designated that money for road maintenance. Councilmember Hertrich further stated he voted two years ago not to adopt the 106% as he felt revenues were sufficient at that time. Councilmember Hertrich said now he is being asked to go back and raise those two years of taxes which he voted against. Councilmember Hertrich said he is prepared to support the 106% for 1992 because of the EMS failure and other short comings in the budget, but he is not going to vote in favor of recouping 106% increases for 1990 and 1991 just so the City can have additional monies in the Contingency Fund. Councilmember Kasper stated after the loss of the levy, the recommendation to the Council was to collect the 106% taxes for 1990 and 1991, which would become revenue, thus solving the Citys problem of loss of the EDMONDS CITY COUNCIL MINUTES Page 2 December 10, 1991 $719,000 from the levy which was subsequently reduced by the goodness of Medic 7 to approximately $650,000. Councilmember Kasper said he still feels it is revenue into the City, and that is where it went, and what is left over is what is in the Citys reserves. Councilmember Kasper noted it has been the Council position that the reserve fund should be $200,000 higher than it was the previous year. Councilmember Dwyer asked if the motion would include restoration monies from 1990 and 1991 and also the imposition of 1992 with regards to the 106% property tax and Council President Wilson replied affirmatively. Councilmember Dwyer inquired if the motion would allow the City to operate the paramedic program without imposing a user fee and Council President Wilson replied affirmatively. Councilmember Dwyer stated he would vote in favor of the motion because he felt it was a negotiated conclusion. Councilmember Dwyer said the philosophy which prevailed on the Council two years ago when the City initially decided not to impose the 106% property increase was that it was not necessary for city government to have tremendous reserves, because as long as there were nonutilized or unimposed tax possibilities, it was the same thing as the City having a line of credit. Councilmember Dwyer said he has no problem imposing taxes now which were not imposed for 1990 and 1991 because he thinks it is perfectly legitimate and it has allowed the citizens the use of their money rather than having the City having the use of the money in that two-year period. Councilmember Dwyer further stated the twenty-five cent per thousand dollar of assessed value rate which has been imposed over the last two years for EMS services will not be imposed in 1992 because of the levy failure. Councilmember Dwyer stated, however, he has a high level of discomfort of having a large amount of money in the Council Contingency Fund and Reserve Fund. With regards to EMS, Councilmember Dwyer stated he is glad that the discussion of a user fee is no longer being discussed, as he feels that would not be in the best interest of the citizens of Edmonds. Councilmember Palmer stated a lot of the revised budget is a compromised budget. Councilmember Palmer said he realizes it does not give everyone on the Council what they are looking for, however, he feels it offers something for everyone. Councilmember Palmer said prudent fiscal management is of the utmost importance in running the City, and he feels the taxpayers have seen enough of businesses going bankrupt, etc., because of a lack of prudent fiscal management and a lack of basic reserves. Councilmember Palmer said the added revenue will become an asset of the City and can be spent if the economy continues to lower or if an extremely attractive opportunity arrives for the City. Councilmember Palmer stated Mr. Housler explained to the Council previously what the standards were for City reserves, and Councilmember Palmer stated even with the increase in revenues at this time, it is still below what the maximum.of what the reserves should be. Councilmember Palmer said the public should be pleased with the Budget, because everything in the Budget was scrutinized, and a more conservative approach is being taken on how the money is spent in the City. Councilmember Hertrich said he endorses some of the budget cuts and the efforts made on behalf of Staff and the Mayor; however, Councilmember Hertrich emphasized he doesn't agree to raising taxes just to give added reserves to the Council Contingency Fund. Councilmember Kasper stated the revenues of the City turned out unpredictable last year and there is no reason that they can be cast in concrete this year, as times are uncertain. Councilmember Kasper noted the City allowed their less than normal reserves in 1991 to be reduced from $800,000 to $600,000 and now Councilmember Kasper said the City is virtually stripped and the Citys reserves must be restored close to $1,000,000 to make sure the City can get through the year if times continue to get tougher. Councilmember Nordquist stated he was disturbed to hear rumors that the Budget would be reduced by simply having the City lay off employees. Councilmember Nordquist said that bothered him because he has been in that situation before and times are rough right now, and it is especially prevalent back East and Councilmember Nordquist feels even harder times are coming this way. Councilmember Nordquist said he is pleased the City will be able to fund the EMS program and feels the citizens will come to realize what an important program it is and will vote to reinstate it. Councilmember Nordquist said he would support the motion. Council President Wilson agreed that to a large part he has driven the budget process. Council President Wilson said it was a difficult process and many heated discussions took place concerning the Budget; however, he said those discussions were fruitful. Council President Wilson stated the City has increased the property tax, but for two basic reasons: 1) The EMS levy failed; and 2) The economic climate dictates the City increase revenues so it is prepared in case there is a EDMONDS CITY COUNCIL MINUTES Page 3 December 10, 1991 further economic down slide. Council President Wilson noted even with the tax increase, taxes will in essence go down because of the EMS failure. Council President Wilson stated the City has also cut the size of government which was consuming the City's reserves. Council President Wilson commended Mayor Naughten for all his hard work on the budget and said Mayor Naughten was always on the job, and was an integral part of the budgetary process. Council President Wilson said the Council should be proud of the Budget because it resulted in managing public monies in a prudent manner. Council President Wilson further stated this was the most difficult Budget he has seen since he has been on the Council. Council President Wilson praised the Management Team and said they handled themselves very professionally and lived up to their managerial responsibilities. The Council President particularly praised Art Housler for all of his efforts and commended him for his outstanding work. Mayor Naughten said he has been involved with 14 budgets since he has been a part of the Edmonds city government, and it is his feeling this was the toughest. Mayor Naughten said it was his feeling the City had to reduce the size of city government and feels sufficient reserves need to be obtained if the economic storm gets worse. Mayor Naughten said in the past, the City has been more than willing to provide community support; however, the City is not going to be able to participate at that level this coming year, and it was Mayor Naughten's hope that the citizens will understand that. MOTION CARRIED with Councilmember Hertrich voting no. PROPOSED ORDINANCE 2857 LEVYING 1992 PROPERTY TAXES City Attorney Scott Snyder noted paragraph two of page one in the proposed ordinance two should be eliminated, as it was inadvertently left in from a past ordinance format. COUNCILMEMBER DWYER MOVED, SECONDED BY COUNCILMEMBER KASPER TO APPROVE EXHIBIT 1 WITH THE DELETION OF THE SECOND FULL PARAGRAPH ON PAGE ONE. Under discussion, Councilmember Hertrich asked for a clarification with regards to the ordinance. Councilmember Hertrich asked if the City has to do anything specific when you are recouping taxes from previous years, such as itemizing what the money will be used for. Mr. Housler said it is illegal to itemize restoration of previous years taxes. Mr. Housler said the County Assessor gives the City a figure that states the amount of money the City can collect, and the ordinance is prepared in that manner. MOTION CARRIED APPROVING ORDINANCE 2857, with Councilmember Hertrich voting no. MAYOR Mayor Naughten noted two liquor license transfers requested by Marriott Management Services, and asked the Council if there were any objections. No objections were noted by the Council. COUNCIL Councilmember Dwyer addressed the timing of the EMS ballot proposition. Mayor Naughten said Mr. Snyder will be drafting a resolution for the Council to review at the December 17 Council Meeting. Council President Wilson said he was disappointed that the vote -by -mail method which Councilmember Dwyer suggested was not popular with the County. Council President Wilson said he is willing to spend more money on a vote -by -mail election, as he feels it would produce better results. Councilmember Dwyer agreed with Council President Wilson and expressed his disappointment in the lack of ingenuity from the Auditor's office. Councilmember Dwyer wanted to be assured if the City did choose to go by a vote -by mail method, it would not be bumped by another election, since the Auditor has said it is not possible to hold a vote -by -mail if there is anything else on the ballot. EDMONDS CITY COUNCIL MINUTES Page 4 December 10, 1991 Mr. Housler said he would check into these matters and the various options available to the Council. It was noted by the Council that timing is of the utmost importance, as there are upcoming deadlines for submittal of this issue. Councilmember Kasper said he does not understand the cost of the vote -by -mail election and feels that should be looked into; however, Councilmember Kasper said the City does not have the luxury of having a lot of time and has to abide by the deadlines in order to get this issue on the ballot. The Council discussed the benefits of the vote -by -mail election; such as, people not having to leave their homes, and also informational material could be enclosed which would fully explain the issue at hand so the citizens would be well informed. Mayor Naughten said he will have the necessary information gathered for Council and present it at the December 17 Council Meeting. Councilmember Hertrich asked why the citizens would vote for the EMS program if the City has already provided funds to cover the program. Mayor Naughten replied the City can only provide funds for the program on a one- time basis and cannot continue to do so in the coming years. Councilmember Hertrich said he wanted that clarified so citizens would be apprised. Mayor Naughten and Council recessed for a brief Executive Session at 8:35 p.m.; and then adjourned to their respective committee meetings. THESE MINUTES ARE SUBJECT TO DECEMBER 17, 1991 APPROVAL THE OFFICIAL SIGNED COPY OF THESE MINUTES IS ON FILE IN THE CITY CLERK'S OFFICE. R NDA J . �1AR CITY CLERK EDMONDS CITY COUNCIL MINUTES Page 5 December 10, 1991 AGENDA .'.EDMONDS z�CITY COUNCIL ` PLAZA MEETING ROOM -LIBRARY BUILDING 7 :0 0 - 10:00 P.M. CITY COUNCIL COMMITTEE WORK MEETING (Second Tuesday of each month) DECEMBER 10, 1991 7:00 P.M. - FULL COUNCIL CALL TO ORDER FLAG SALUTE 1. CONSENT AGENDA (A) ROLL CALL (B) APPROVAL OF MINUTES OF NOVEMBER 26, 1991, BUDGET WORK SESSION OF DECEMBER 2, 1991, AND DECEMBER 3, 1991 2. PROPOSED ORDINANCE 2856 LEVYING 1992 PROPERTY TAXES (15 MINUTES) 3. FINALIZATION OF 1992 BUDGET AND PASSAGE OF ORDINANCE 2857 ADOPTING BUDGET (After the Council Meeting as a whole has adjourned, the following committees will meet simultaneously at the locations indicated.) 1. FINANCE COMMITTEE Room 113 (Conference Room), Frances Anderson Center Agenda: (A) REVIEW OF WASTEWATER TREATMENT PLANT SALARIES (B) REQUEST TO LEASE 7 POLICE VEHICLES (C) PROPOSED ORDINANCE FOR BUSINESS LICENSING OF OUTSIDE CONTRACTORS (D) REVIEW WARRANTS, PETTY CASH, AND CREDIT CARD EXPENDITURES FOR MONTHS OF OCTOBER AND NOVEMBER, 1991 2. PUBLIC SAFETY COMMITTEE Small Plaza Meeting Room, Library Building Agenda: (A) REVIEW OF "SHOCAP" PROGRAM (8) REVIEW OF SOLICITATION IN MUNICIPAL COURT 3. COMMUNITY SERVICES COMMITTEE Large Plaza Meeting Room, Library Building Agenda: EPAND (A) PROANDPOSED CCLARIFFYDINANCE BONDING ANDDING INSURANCENITY REQUIIREMENTSENT ANDCODE PROVIDINGOFOR9AN5EFFFEECTOIVEXDATE (B) REQUEST BY WSDOT FOR EMERGENCY REPAIRS TO EDMONDS FERRY TERMINAL The three City Council committee meetings are work sessions for the City Council and staff only, and are not public hearings. All committee meetings, however, are open to the public. PARKING AND MEETING ROOMS ARE HANDICAPPED ACCESSIBLE