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19830301 City Council MinutesHarcn 1, 1983 The regular meeting of the Edmonds City Council was called to order at 7:35 p.m. by Mayor Harve Harrison in the P1aza'Meeting Room of the Edmonds Library. All present joined in the flag salute. PRESENT ABSENT STAFF PRESENT Harve Harrison, Mayor Katherine Allen Jim Adams, City Engineer Jo -Anne Jaech Laura Hall Irene Varney Moran, City Clerk Ray Gould Art Housler, Finance Director Larry Naughten Jeff Ristau, Accounting Supervisor Bill Kasper Duane Bowman, Asst. City Planner John Nordquist Pat LeMay, Personnel Director Teresa Jolly, Student Rep. Marlo Foster, Police Chief Jack Weinz, Fire Chief Jim Jessel, Property Manager Wayne Tanaka, City Attorney Jackie Parrett, Deputy City Clerk AUDIENCE Allen Bergman of the Edmonds Scuba Center said he had spoken to some suppliers about contributing some equipment for an auction to help raise money for the emergency rescue boat and had received a favorable response. MAYOR Mayor Harrison presented a plaque to the outgoing Council President, Bill Kasper, in recognition of his service, and he also presented plaques to the former Council Presidents, Katherine Allen • in 1981, John Nordquist in 1980, and to Mayor Pro tem Ray Gould in 1979. CONSENT AGENDA Items (B) and (D) were removed from the Consent Agenda. COUNCILMEMBER NAUGHTEN MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO APPROVE THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The approved items on the Consent Agenda included the following: (A) Roll call. (C) Authorization to call for bids on March 30, 1983 for construction of a 5' asphalt pedestrian walkway on 76th Ave. W. from Olympic View Dr. to Meadowdale Beach Rd. (E) Adoption of Ordinance 2355, amending Obstructing Justice Ordinance. APPROVAL OF MINUTES OF FEBRUARY 22, 1983 [Item (B) on Consent Agenda] Councilmember Gould referred to the discussion of the policy statement regarding rental of meeting rooms on pages 6 and 7 and said a statement should be added to show the Council did discuss the use of the City rooms by the Friends of the Library and decided they would be able to use the facilities at no cost since they are providing in -kind contributions. COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMEMBER KASPER, TO APPROVE ITEM (B) ON THE CONSENT AGENDA, AS AMENDED. MOTION CARRIED. PROPOSED ORDINANCE 2354 ESTABLISHING A FUND FOR THE EMERGENCY RESCUE BOAT r1_t_e_m_FDJ on Consent Agenda Councilmember Kasper asked if this incorporated'the fund. Councilmember Naughten responded • that the ordinance established the fund. Councilmember Nordquist commented that he had heard from some businessmen in the Seattle area who mentioned they would like to participate or contribute to the program. He thought it rewarding that people froma neighboring community want to participate. He also noted that there was a very positive newspaper'article this evening and he found it rewarding to have positive response from areas of King County and Snohomish County. Councilmember Naughten added that people who wish to contribute can contact Parks &'Recreation Director Steve Simpson. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO APPROVE ITEM (D) ON THE CONSENT AGENDA. PASSING ORDINANCE 2354. MOTION CARRIED. Councilmember Gould complimented Councilmember Naughten and the City Safety Committee on their leadership in bringing this program forward, saying it was well done and will be an asset to the City. Councilmember Kasper said he had voted against the previous motion for the funding because he thought there should be a public hearing, but he thought they should definitely get the County involved in the funding as it is an area project and Edmonds cannot finance it alone. HEARING ON PRELIMINARY 6-LOT SUBDIVISION AT 18924 88TH AVE. W. (SUBCLEFF/P-4-82 The Council had been provided a copy of the proposed plat, a vicinity map, and the Hearing Examiner's report. Assistant City Planner Duane Bowman explained the proposal and reviewed the Dearing Examiner's recommendation. He had recommended approval, subject to the following conditions: The applicant is to comply with all Engineering requirements. Lot 4 is to be considered a flag lot with the front setback being to the north, the rear to the south, and the sides to the east and west. The applicant shall sign a covenant, binding upon him and his successors, to be placed on the plat requiring that Lots 1 and 2 be kept and sold as one parcel until the house and garage located thereon are removed. Upon removal of the house and garage from Lots 1 and 2 they may be sold separately. The existing asphalt driveway on the south side of the property shall remain open until the issuance of a building permit for Lot 4. At that March 1, 1983 - continued time the asphalt driveway shall be permanently closed at the west lot lire of Lot 6. The applicant shall dedicate..25' on the north side of Lets 1, 2, and 3 for the widening of"189th P1. S.W. The existing house on Lot 1 will become nonconforming as to its south setback. In discussion it was noted that building permits will not be issued on Lots 3 and 4 until the access blockage is removed. The hearing was opened. Randy Sleight of Reid, Middleton & Associates, said he concurred with all the items noted in the Hearing Examiner's report except that a 10' sanitary sewer easement is needed on the north boundary for the most easterly two lots. No one else wished to speak, and the hearing was closed. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCiLMEMBER KASPER, TO APPROVE. P-4-82 WITH THE CONDITIONS STATED BY THE HEARING EXAMINER AND THE ADDITIONAL ONE REGARDING THE SEWER EASEMENT STATED BY MR. SLEIGHT. Councilmember Gould noted that the Hearing Examiner's report indicated there was no opposition testimony at that hearing, nor was there any this evening, so it appeared to be all right with the neighbors. MOTION CARRIED. CONTINUATION OF DISCUSSION OIL WATER/SEWER RATE STRUCTURE PRINCIPLES Councilmember Gould reviewed the orevious action, noting that of the 15 principles proposed only Principles 9 and 11 were left to be addressed. He discussed Principle 9, "Rate structure concepts," noting that there are two types of systems --a cost allocation systera which includes demand cost, billing cost:, and volume cost; and a customer service system wherein the total cost is divided equally. The two-part proposal stated that (1) The water bill for multi -family dwelling units per billing period should be $0-$3 less than for single-family because of billing cost distribution (at identical consumption); and (2) Sewer rates should be flat. The cost allocation system is a cost accounting phiiosophy wherein each segment of the services provided is determined and allocated to a number of classes of customers. The customer service philosophy • is essentially that each customer who uses the facilities or services of -the system has a certain charge which is the same for, all of those customers who receive that service --the service is available so each customer is charged equally. In discussion, Councilmember Kasper observed that in the apartmients for the elderly the water demand was very low as there was an average of only 1 - 1 1/2 people in each unit, whereas in the larder buildings with more, bedrooms anti more people in each unit the demand -is much higher. He agreed that there is some inequity but he did not think it to be to the degree extended in Mr. Crow's figures --if an analysis were done of all of the multi -family. Hle noted that he had provided some information last week on the demand charge. Mayor Harrison said in discussing this with the Finance personnel they had made a new analysis to cover the cost of meter reading, billing, and collection and it turned out to be approximately $1 per billing, and he thought this should be credited to each oi` 4L multi -family units to give some equity in the cost. They had established how many billings there are in the City, rather than how many units. He said the average multiple -unit has eight units and they.are billed every month, whereas. single-family units are hided every two months. Councilmember Kasper then reviewed the figures on the analysis he haci distributed, and then Bi11 Crow reviieweG his figures which reflected that several condominiums have saved from $+07.88 to fi2,403.72 in the 22 months since the Price Waterhouse report. He asked the present Council to make a decision on this issue so it will not become an election issue. He does not want a slow phase - in of the new rates. Councilmember Kasper figured the savings per unit, using Mr. Crow's figures, and said the savings were only $2 per unit, but Mr. Crow tool- issue with his corfiputation and he said if the rates are unequal and unfair, why take two years to phase -in the new rates. Accounting Supervisor Jeff Ristau explained that the Billing and Collection Cost Element was shown to be $3.13 on the analysis Councilmember Kasper had distributed, and.that $3.13 is the distribution of "customer costs," which have been referred to as billing and collection costs since the Price Waterhouse report. He said the $1 cost is the billing cost and t`rhe P2.13 additional is made up of other customer related costs--SNOCOM charge to the utility for dispatching vehicle in which service calls are made to the customer and other administrativecosts. Councilmember .Gould said the bill for 1,O00 gallons should be the same -to a single-faiii-ily user and a multiple user except for the customer cost. Counci lrnember Kasper said the multi -family i s paying more for the larger water line. Councilmember Gould said the principle lie would like to see adopted is that the bill be the same except for billing costs. He said it is their feeling, based on the evidence, that 99% of single-family homes have.the same demand capacity. He recommended that the proposed principle be changed to say the water bill for iiiul t�i-faiiii ly dwelling units. per billing aeriod should be $1 less than for single-family because of billing costs, and that it be 'looked at every year. Councilmember iNordqu�ist asked if this would apply to custoriiers outside the City. He thought the costs outside the system should be ,greater than inside tine system. COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMMEMBER JAECH,.THAT T-HE PRINCIPLE STA11 THAT THE WATER BILL FOR MULTI -FAMILY DWELLING UNITS PER BILLING PERIOD SHOULD BE $1 LESS THAN FOR SIiNGLE-FAMILY BECAUSE OF BILLING COST DISTRIBUTION (Al' IDENTICAL CONSUMPTION). i10T I014 CARRIED. Councilmember Gould noted that the second part of the principle was already adopted in Principle 10 (sewer rates should be flat). Principle 11, "Bond Payments," stated "Examine and consider all options for paying construction bond costs" and some of the options were listed.. Councilmember Gould said the idea behind the principle was that there are other places to get monies for construction costs besides just raising the rates. Mayor Harrison.noted that there will be $12,000,per ,year income from rental of the old Public Works building to the Elm Club. Councilmember Nordquist said the water/sewer should be a separate entity standing on its own and should be isolated from all other th-iligs. To get the construction projects done, Councilmember Gould thought they should sell excess property, use LIDs where oossible, use the rent, from the Public Works facility, and use the sales tax equalization money. He said they should build the structure so it will stand alone and support the construction projects of the future, and they will have to forecast what the construction costs will be in future years and figure the rates needed to do them,.but for now there is an emergency to address. Councilmember Jaech said there is no sales tax allocation for 1983, the earliest is for 1985. She preferred doing the funding of the rate structure March 1, 1983 - continued • within a separate entity. Councilmember Naughten observed that the rates would have to go up significantly to accomplish that. COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMEMBER NAUGHTEN, TO USE ITEM 11B, "UTILITY RATE," AS.PART-OF THE -SYSTEM FOR -BOND PAYMENTS. MOTION CARRIED, WITH COUNCILMEMBER KASPER VOTING NO. He said he wanted it to carry it all. Councilmember Naughten said he agreed for future years, but now they were talking about this year. Councilmember Gould said he was thinking of one system for 1983/1984 and a self -standing system starting in * 1983. COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMEMBER NAUGHTEN, TO ASK THE STAFF TO IDENTIFY AND ITEMIZE EXCESS WATER/SEWER PROPERTY THAT COULD BE SOLD AND THE FUNDS USED FOR BOND PAYMENTS. A ROLL CALL VOTE WAS TAKEN, WITH COUNCILMEMBERS GOULD AND NAUGHTEN VOTING YES, AND 14ITH COUNCILMEMBERS KASPER, JAECH, AND NORDQUIST VOTING NO. MOTION FAILED. Mr. Housler suggested that any additional sales tax revenue for the next two years be transferred directly to the water/sewer construction fund to reduce the bond principle. He said there are other factors to support going for a bond issue in the next three or four months, and he discussed them. He said the increase in the multi -family rate should pay enough to pay the bond requirements, with the other rates remaining the same, as $107,000 would be produced by the increase in multi- family rates. Councilmember Kasper said unless the rate change is immediate there will not be that $107,000. COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMEMBER NAUGHTEN, THAT THE COUNCIL GIVE ITS CONSENT TO USE UP TO $288,000 OF THE INCREASED SALES TAX EQUALIZATION MONIES AND PUT THOSE IN THE WATER/SEWER CONSTRUCTION FUND. MOTION CARRIED, WITH COUNCILMEMBERS KASPER AND 1ORDQUIST VOTING NO. Councilmember Nordquist said he thought the people could still be directed in several avenues, but this action will commit to only one avenue. COUNCILMEMBER KASPER MOVED, SECONDED BY COUNCILMEMBER GOULD, THAT LID'S BE USED WHEREVER JUSTIFIED TO PRODUCE FUNDING TO REDUCE THE CONSTRUCTION COSTS. MOTION CARRIED, WITH COUNCILMEMBER NORDQUIST VOTING NO. The utility tax was discussed,.following which COUNCILMEMBER GOULD MOVED, SECONDED BY COUNCILMEMBER KASPER, THAT THE UTILITY TAX ON THE WATER WILL BE DIRECTED TOWARD THE WATER/SEWER UTILITY FUND AND TO REDUCE THE AMOUNT PLEDGED FROM THE SALES TAX EQUALIZATION ($288,000) BY THE AMOUNT OF • THE WATER UTILITY TAX REVENUE. MOTION,CARRIED. At Mr. Housler's request, COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER NAUGHTEN, THAT THE STAFF BE AUTHORIZED TO PROCEED TO PREPARE THE OFFICIAL STATEMENT FOR A BOND ISSUE OF $1,000,000 AND THAT IT BE A NEGOTIATED SALE. MOTION CARRIED. Mr. Ristau distributed a list of questions related to the approved water/sewer rate principles, the answers to which are needed in order for the Finance Department to prepare the rates, and he asked for answers from the Council. After some discussion it was determined that the Staff will answer the questions themselves and then if the Council is not satisfied they can make changes. The schedule of presentation was adjusted, placing a staff workup of the structure on the March 8 agenda and moving.the public hearing on the rate structure to March 15, with adoption being moved to March 22. COUNCILMEMBER KASPER MADE A MOTION TO THAT EFFECT, SECONDED BY COUNCILMEMBER NORDQUIST. MOTION CARRIED. ADDITIONAL TEMPORARY PUBLIC SERVICE PROJECTS The Mayor requested approval of two additional public service projects, work at the cemetery in the amount of $3,924, and cleaning sod from curbs and sidewalks in the amount of $18,432. Details were provided to the Council. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER KASPER, TO APPROVE THE REQUEST. MOTION CARRIED. COUNCIL Councilmember Naughten asked about an ad hoc committee he had heard about regarding waterfront property. Mayor Harrison.said it will study street ends which terminate at the water, and the first project is the replacement of the planters on Sunset. Councilmember Nordquist said he had heard of an imminent resignation and he suggested that this may be the time to make an adjustment to the organization chart. Councilmember Kasper stated that the pedestrian walkway on.76th in the Meadowdale area will • cost approximately $221,000 which is $28 per lineal foot for an asphalt walkway. Mayor Harrison said a lot.of the expense is for drainage. Councilmember Kasper thought it may be possible that the bids will come in low. Council President Jaech again asked for.input regarding committee appointments and also for suggestions regarding committee structure between Councilmembers and department heads. Council - member Gould favored having only two committees, Personnel and Finance, and that they be comprised of all Councilmembers. He felt they had functioned well in previous years with no committees, and said in reality they all try to be present anyway. Councilmember Kasper said he would like to be removed from the Professional Consultant Selection Commi.ttee. Council President Jaech said that in the future when a Councilmember is going to be absent he/she will notify her rather than make a public announcement so everyone does not have to know that person will be out of town if.that is the case. This is in the interest of security of the person's.home. Councilmember Naughten said he has had inquiries about the status of Councilmember Allen since her election to the State Legislature, and he asked the Council President. to inquire. Council - member Nordquist suggested that he just telephone Councilmember Allen, and Councilmember Nordquist also noted that Gary Nelson had retained both positions when he was elected to the State Legislature. Councilmember Kasper said there has never been a quorum problem and he had discussed it with Councilmember Allen some time ago. There was no further business to come before the Council, and the meeting adjourned at 10:25 p.m. IRENE VARNEY MORAN, Uty Clerk HARVE H. HARRISON, Mayor • *See 3-8-83 minutes