03/06/2012 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
March 6, 2012
The Edmonds City Council meeting was called to order at 6:30 p.m. by Mayor Earling in the Council
Chambers, 250 5`" Avenue North, Edmonds.
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Strom Peterson, Council President
Frank Yamamoto, Councilmember
Joan Bloom, Councilmember
Michael Plunkett, Councilmember
Lora Petso, Councilmember
Adrienne Fraley- Monillas, Councilmember
Diane Buckshnis, Councilmember
ALSO PRESENT
Alex Springer, Student Representative
STAFF PRESENT
Stephen Clifton, Community Services/Economic
Development Director
Shawn Hunstock, Finance Director
Carrie Hite, Parks & Recreation Director
Rob Chave, Planning Manager
Carl Nelson, CIO
Frances Chapin, Cultural Services Manager
Jeff Taraday, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
1. MEET WITH CANDIDATES FOR APPOINTMENT TO THE HISTORIC PRESERVATION
COMMISSION
At 6:30 p.m., the City Council met with Historic Preservation Commission candidates Gerald Tays, Tim
Raetzloff, Bill Muller, and Margaret Keogh. The meeting took place in the Jury Meeting Room, located in
the Public Safety Complex. All City Councilmembers and the Mayor were present for the meeting.
Mayor Earling reconvened the regular City Council meeting at 7:00 p.m. and Girl Scout Troop 42215 led
the flag salute and the Girl Scout Pledge.
2. APPROVAL OF AGENDA
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PLUNKETT
TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED
UNANIMOUSLY.
3. APPROVAL OF CONSENT AGENDA ITEMS
Council President Peterson requested Item I, Proposed Ordinance Amending Ordinance No. 3821 to
Revise the Time Limit Provision Relating to the Payment of Additional Compensation, be removed from
the Consent Agenda and rescheduled on a future agenda at the request of the City Attorney.
Councilmember Plunkett requested Item K be removed from the Consent Agenda.
COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO
APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED
UNANIMOUSLY. The agenda items approved are as follows:
Edmonds City Council Approved Minutes
March 6, 2012
Page 1
A. ROLL CALL
B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF FEBRUARY 21, 2012.
C. APPROVAL OF CITY COUNCIL MEETING MINUTES OF FEBRUARY 28, 2012.
D. APPROVAL OF CLAIM CHECKS #130587 THROUGH #1.30735 DATED FEBRUARY 23,
2012 FOR $2,296,824.25, AND CLAIM CHECKS #1.30736 THROUGH #130821 DATED
FEBRUARY 29, 2012 FOR $456,407.40.
E. ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM COMCAST ($423.13),
AND JANIS CAIN ($1,630.70).
F. AUTHORIZATION FOR THE MAYOR TO SIGN CITY OF EDMONDS LODGING TAX
COMMITTEE TOURISM PROMOTION AGREEMENT AWARDING THE
SNOHOMISH COUNTY VISITOR'S BUREAU $6,000 FOR TOURISM PROMOTION
AND SUPPORT OF VISITOR SERVICES TO PROMOTE EDMONDS.
G. AUTHORIZATION FOR THE MAYOR TO SIGN CITY OF EDMONDS LODGING TAX
COMMITTEE TOURISM PROMOTION AGREEMENT AWARDING THE EDMONDS
CENTER FOR THE ARTS $10,000 TO ATTRACT VISITORS TO EDMONDS
THROUGH ADVERTISING AND PROMOTING DOWNTOWN EDMONDS AND
ANNUAL CULTURAL EVENTS/FESTIVALS IN THEIR 2011/2012 SEASON
BROCHURE.
H. AUTHORIZATION FOR THE MAYOR TO SIGN CITY OF EDMONDS LODGING TAX
COMMITTEE TOURISM PROMOTION AGREEMENT AWARDING THE EDMONDS
VISITOR'S CENTER $2,500 FOR TOURISM PROMOTION AND SUPPORT OF
VISITOR SERVICES TO PROMOTE EDMONDS.
J. ORDINANCE NO. 3875 - AMENDING THE CITIZENS' TREE BOARD ORDINANCE;
ADDING ONE NON - VOTING, EX- OFFICIO POSITION TO THE CITIZENS' TREE
BOARD TO BE FILLED BY AN EDMONDS CITY COUNCIL MEMBER; AND
ESTABLISHING THE LENGTH OF TERM FOR AN APPOINTEE WHO HAS FILLED
A VACANCY.
MEMBERS
Councilmember Plunkett Introduced Gerald Tays, Margaret Keogh, Tim Raetzloff, and Bill Muller.
COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER PETSO, TO
CONFIRM THE APPOINTMENT OF GERALD TAYS, TIM RAETZLOFF, BILL MULLER AND
MARGARET KOEGH TO THE HISTORIC PRESERVATION COMMISSION. MOTION
CARRIED UNANIMOUSLY.
4. PROCLAMATION IN HONOR OF GIRL SCOUTS 100TH ANNIVERSARY
Mayor Earling read a proclamation applauding the Girl Scouts of America for 100 years of leadership and
expertise. The proclamation praised the Girls Scouts of Western Washington for providing the local
support for Girl Scouting in the community and the Girl Scouts of Edmonds for their courage, confidence
and character to act to make our world a better place. Mayor Earling proclaimed 2012 as the "Year of the
Girl." He presented the proclamation to Girl Scout Troop 42215.
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March 6, 2012
Page 2
Councilmember Fraley- Monillas pointed out Councilmembers Buckshnis, Petso, Bloom and she had also
been Girl Scouts.
5. AUDIENCE COMMENTS
Andy Eccleshall, Chamber of Commerce, announced the first Edmonds Business Expo on March 24 at
the Edmonds Conference Center from 9:00 a.m. to 5:00 p.m. The Expo will showcase local businesses,
specifically businesses that do not have a storefront, and provide an opportunity for those businesses to
interact with the public and for the public to meet and interact with local experts. The event can
accommodate a maximum of 78 vendors. There will be seminars throughout the day by the businesses,
hourly door prizes and light food provided by local caterers. The event is free to the public and booth
spaces are only $75. Further information is available at the Chamber website or by calling Jan Vance or
him. The deadline for submitting vendor applications is March 16. Councilmember Buckshnis inquired
about non - profit corporations. Mr. Eccleshall stated they were welcome and the $75 booth fee could be
negotiated.
Lynn Heitritter, Edmonds, explained many Edmonds residents find themselves without health
insurance. She described a new resource, Edmonds Mobile Medical Clinic, HOPE, that will provide free,
basic healthcare services to uninsured individuals in the community on a weekly basis under the non-
profit charitable organization, the Puget Sound Christian Clinic, and with support from the Verdant
Health Commission. Clinics are offered at the Edmonds United Methodist Church, also the location of the
Edmonds Food Bank. The clinic is staffed entirely with volunteers from four different churches in the
Edmonds area, as well as individuals from Shoreline, Mukilteo, Lynnwood, Brier, Mill Creek, Camano
Island and Federal Way. Their singular focus is to provide their patients with quality and compassionate
healthcare. The Edmonds clinic serves a diverse population and age range; 75% are women, many of
whom have not had healthcare for several years. The clinic is able to provide follow -up care and about
1/3 of their patients are scheduled for follow -up care, a critical step in preserving and maintaining health.
In addition to alleviating the stress and distress of human suffering, the clinic also saves tax dollars by
preventing emergency room visits. To celebrate this free healthcare program, she invited the Council and
public to a commissioning service at the Edmonds United Methodist Church this Sunday at 9:00 and
10:30 a.m. The HOPE truck will be on site and tours are available. Mayor Earling commended them for
offering this fabulous service to the community.
Marianne Zagorski, Edmonds, requested the City Council review the eligibility of one of its members
to serve on the Council. She referred to rumors that Councilmember Plunkett, who married a Seattle
resident last year, no longer resides in Edmonds, having moved to his wife's home in Magnolia. He has
publicly moved his office to Magnolia. If Councilmember Plunkett is no longer an Edmonds' resident, he
may no longer be eligible to serve on the City Council. She recommended the Council consult with legal
counsel to determine his eligibility and if the Council has already done so, share that legal
recommendation with citizens. She requested the Council undertake this action soon, fearing the actions
taken by the Council may later prove non - binding or non -legal if a vote is decided by someone not
eligible to serve on the Council. Inaction may put the City at risk of incurring unnecessary legal expenses.
Jenny Anttila, Edmonds, recalled she provided public comment in December regarding healthcare
benefits for City employees and suggesting the Council renegotiate with the unions before June. She
pointed out the corporate world and other cities are considering a reduction in healthcare benefits and she
hoped Edmonds was doing the same. She referred to an article in the Edmonds Beacon where Mayor
Earling stated the City will have an $800,000 shortfall in 2013. The article did not describe what the City
is considering with regard to savings on expenditures such as healthcare. She assured reducing healthcare
benefits is normal and is not picking on anyone. She suggested the Council also consider reducing their
own healthcare benefits. She referred to comments on wall sconces behind the City Council, "fairness is
Edmonds City Council Approved Minutes
March 6, 2012
Page 3
what justice really is," "justice cannot be for one side only," which refers to citizens paying for benefits
they cannot afford themselves, and "common sense is as rare as genius."
Dave Page, Edmonds, referred to the City's financial crisis, suggesting citizens need to consider what
the City has already done. He has been reviewing the City's budget for the past 25 years and realized
since the 1% cap on property tax increase, the City has been going backwards. As an example, he cited
population and number of employees for nearby cities: Lynnwood has a population of 39,000 and 465
city employees; Mountlake Terrace's population is 19,900 and has 265 employees; Edmonds' population
is 40,000 and has 200 employees. He pointed out there are numerous employees with 10 -20 years of
service; they have to be paid to do their job. Employee morale is terrific in Edmonds. For every $1 in
sales tax, the City receives less than 1 cent and sales tax is down over 30% in the last 5 years. Real Estate
Excise Tax is down 35 -40% since 2007, placing the City's infrastructure at risk. He assured the City's
budget was scraping the bottom of the barrel; a way needs to be found to fund the $800,000 shortfall. He
expressed his willingness to pay his share. He recommended the Council find a levy that all
Councilmembers can agree on because the City collects all the money from a levy and does not have to
share it with the state or county.
Roger Hertrich, Edmonds, referred to agenda item 7 and suggested the title of manager rather than
director was more appropriate for a temporary position. Next, he referred to the advertisement on Channel
21 for the strategic plan charrette, suggesting it did not generate any excitement/encouragement for
citizens to attend. He suggested utilizing someone with experience in advertising to make the
advertisement more exciting.
Don Hall, Edmonds, referred to agenda item 9, an ordinance changing the Economic Development
Commission's (EDC) charge to read, identify new sources of revenue as a direct result of economic
development projects for consideration of the City Council. Speaking as an individual and not a member
of the EDC and relaying questions and ideas from other citizens, he pointed out there may be good ideas
that on the surface do not meet that criteria but could help add to the General Fund and free up funds to
spend on economic development. He urged the Council not to stifle creativity and volunteerism;
hopefully citizens will get together and brainstorm ideas and bring them to committees or the Council and
the Council can explore and discuss and make a decision. Regardless of the origin of an idea, the Council
makes the final decision; issues and ideas do not go away just because a Councilmember does not like the
idea. He expressed concern with the lengthy process to make the proposed change to the EDC's charge.
6. PUBLIC HEARING REGARDING PARK IMPACT FEES
Parks & Recreation Director Carrie Hite explained she has presented the concept of park impact fees to
the Finance and the Community Services /Development Services Committees as well as the Council in
September. The presentation to the Council included information provided by Randy Young, Henderson,
Young & Company. At the conclusion of that meeting, the Council requested a public hearing and that
staff provide answers to several questions that arose.
Ms. Hite provided the definition of an impact fee: a one -time payment, by new development, for capital
costs of facilities needed by new development. She clarified current residents would not be assessed park
impact fees. Park impact fees are assessed on new development to help pay for the impact the new
development has on the City's park infrastructure.
She described the calculation and collection of park impact fees:
• Collected per dwelling units, either multi- family or single family
• Calculated and collected at the time of a building permit.
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March 6, 2012
Page 4
To the question of whether the park impact fee could be collected after the completion of a building rather
than at the time of a building permit as it may be burdensome to pay a park impact fee when applying for
permits, she explained in consultation with the City Attorney, that may be possible.
Ms. Hite reviewed the requirements for spending park impact fees:
• Have to be spent on capital costs of public facilities that are determined in the Capital Facilities
plan element.
• CFP must identify additional facility capacity needed for new development.
• Have to expend within 6 years after collection
• New or expanded facilities, not renovation, remodel of existing.
• Can provide exemptions ( i.e. low income housing)
She described how park impact fees are determined, explaining the packet includes examples of several
other cities' park impact fees:
• Impact fees can only cover the proportionate share of system improvements, capital facilities
development
• Adjustments requirement: need to consider other revenues that support the CFP (i.e. REET,
grants, etc.)
• Credit requirement: allows developers to apply for credit if they mitigate
Types of park facilities that are covered by park impact fees include parks, recreational facilities, open
space and trails. To the question of whether park impact fees can cover arts, the answer is no; they can
only be used for parks, recreational facilities, open space and trails.
She listed the types of facilities in the City's current Parks, Recreation and Open Space Plan that park
impact fees could help fund:
• Aquatic facility
• Sports fields
• Additional off -leash area
• Community garden
• Additional bike lanes, pedestrian connections
• Neighborhood parks
Ms. Hite provided park impact fees in other cities in 2010, noting the packet included a list of all
Washington cities that have park impact fees:
City
Park Impact Fee
Issaquah
$6,404
Monroe
$4,579
Snohomish
$4,150
Duvall
$4,068
Mill Creek
$3,887
Kirkland
$3,845
Sultan
$3,175
Redmond
$2,812
Mukilteo
$2,438
Kenmore
$2,329
Mountlake Terrace
$2,026
Bellevue
$2,000
Brier
$2,000
Woodinville
$1,726
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March 6, 2012
Page 5
Bothell
$1,345
Marysville
$1,251
Mount Vernon
$ 855
Arlington
$ 484
Ms. Hite explained since 2010, several cities have adopted park impact fees, one of which is Tukwila,
where the City's Finance Director Shawn Hunstock used to work. To the question of whether park impact
fees can be imposed on residential as well as commercial development, Ms. Hite answered yes, most
cities impose park impact fees on only residential development; Tukwila adopted a park impact fees in
2011 that is also imposed on commercial development.
In response to a question that arose during the previous Council discussion in regard to historical
development, Ms. Hite provided a graph of new single family and multi - family dwelling units added
2001 -2009:
Year
Single Family
Multi-family
2001
55
71
2002
83
72
2003
63
22
2004
96
245
2005
109
30
2006
73
92
2007
67
70
2008
21
140
2009
9
19
2010
18
21
2011
15
89
To the question of why should Edmonds have impact fees, isn't Edmonds built out, Ms. Hite provided the
following:
• Conversions from single - family to multi - family, and/or construction of multi - family
o Example: new 89 unit multi - family on SRI 04
• Population growth next six years = 1,237
• Transportation impact fees collected in Edmonds for past six years: $571,872
• Only other capital budget for parks is REST
Ms. Hite described potential revenue from park impact fees in Edmonds:
• Population growth next six years = 1,237
• 1,237 people _ 2.5 people /dwelling units = 495 dwellings
• 495 dwellings @ $1,200 /dwelling units* _ $600,000
* This represents an average amount levied from various jurisdictions. Edmonds will need to determine
the exact amount through a study
Ms. Hite described how park impact fees are determined:
• Very complex and regulated
• Complicated rules, regulations, determinations
• RCW 82.02.050- 82.02.100
All cities that have imposed impact fees have completed a rate study (packet includes rate studies
from six cities)
Cost of the study is $25,000- 30,000 ($30,000 is allocated in the CIP in REET under planning)
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March 6, 2012
Page 6
Ms. Hite described the timing and cost to develop a park impact fees:
• Fee Calculation Study (3 -4 months)
• Ordinance (1 month)
• Review and Adoption:
• City Staff (1 month)
• City Council (1 -2 months)
Consulting Costs (examples):
• Olympia (parks - 2005) $ 29,700
• Issaquah (parks - 2007) 27,050
• Edmonds (roads - 2009) 27,470
• Renton (parks - 2010) 29,830
Councilmember Petso inquired about decision points during a rate study for the Council to provide
direction. Ms. Hite envisioned the City would hire a consultant to complete the study; the consultant
would review the City's asset inventory, capital, deficit, projected growth, etc. and develop a calculation.
At the end of that study period, the Council would need to make several decisions including whether to
impose park impact fees on commercial, residential or both; whether to provide exemptions; etc.
Councilmember Petso referred to the ability for developers to apply for credit if they mitigate rather than
pay a fee. She asked whether that was within the Council's control, noting there are some locations where
it would be very valuable for a developer to mitigate via open space or a tot lot but there are other
overriding needs such as sports fields where the City may not want to allow a developer to mitigate with a
tot lot. City Attorney Jeff Taraday explained state law requires the City to allow credits for the in -kind
provision of the same facilities that are included in the park impact fees calculation. For example, if tot
lots were included in the impact fee calculation and a developer provides a tot lot, they would receive
credit for the value of the tot lot. If tot lots are not included in the park impact fees calculation, they
would not receive a credit even if a tot lot is otherwise required as a condition of development. Not
everything a developer provides as a condition of development approval necessarily translates into an
impact fee credit; it depends on what is provided.
Councilmember Buckshnis referred to Kirkland's study and the indication that park impact fees could be
used for the marsh and wetlands. Ms. Hite answered that could be considered in Edmonds' study; growth
certainly would contribute to runoff that flows to the marsh. The marsh feasibility study will provide
further information regarding how possible future growth may impact the marsh. She recommended the
next update of the Parks, Recreation and Open Space Plan define the impact of future growth.
Councilmember Buckshnis referred to Renton's plan that includes fire equipment. Ms. Hite explained
there are allowable impact fees in addition to park impact fees. Tonight's discussion is only about parks;
Renton's fee study covered a multitude of impact fees that were instituted at the same time.
Council President Peterson asked whether a park impact fee is charged if a single family home is
demolished and replaced with a single family home. Ms. Hite answered a park impact fee would not be
assessed in that instance. Council President Peterson observed bike lanes were one of the approved uses
for park impact fees; he asked whether the bike lane had to be on the street where development occurred.
Ms. Hite answered it could be a bike lane anywhere in the City to mitigate future growth.
Council President Peterson asked how the impact on parks from commercial development was
determined. Ms. Hite answered consideration is given to the number of employees coming into the
community on a daily basis and making assumptions that those people will be using the trails, going to
parks, recreating before /during /after work, etc.
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March 6, 2012
Page 7
Council President Peterson referred to the 6 -year time period to expend park impact fees. Ms. Hite
answered it is a rolling 6 -year window. She noted park impact fees could be used to apply for grants,
leverage REST dollars, etc.
Councilmember Yamamoto asked about making revisions to the Park, Recreation and Open Space Plan.
Ms. Hite responded the Park, Recreation and Open Space Plan is updated every six years which includes
an extensive public process. Mr. Taraday explained the park impact fees calculation should be closely tied
to the Capital Facilities Plan. When major amendments are made to the Capital Facilities Plan, the park
impact fee calculation should also be adjusted. Minor changes may not require revising the park impact
fees calculation. Ms. Hite added the Park, Recreation and Open Space Plan and park impact fees can be
amended at any time.
Mayor Earling opened the public participation portion of the public hearing. There were no members of
the public who wished to provide testimony. Mayor Farling closed the public participation portion of the
public hearing.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY-
MONILLAS, TO MOVE FORWARD AND AUTHORIZE STAFF TO DO AN RFP FOR A RATE
STUDY.
Council President Peterson inquired about funds allocated in the 2012 budget for the rate study. Ms. Hite
responded the funds are currently allocated in REET Fund 125 under planning.
THE VOTE ON THE MOTION CARRIED UNANIMOUSLY.
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Mayor Earling explained the reason he included the appendix salary range table in the packet was to
illustrate that the former mayor included nearly $15,000 for an Acting Development Services Director,
and this was not a request for additional funds.
Councilmember Buckshnis observed an amendment was not required if the preliminary budget included
the funds; the Council was only authorizing the allocation of $14,983. City Manager Jeff Taraday
responded the preliminary budget should have included this appendix and it did not. Ideally at some point
the City Council would take action to formally approve the appendix in its entirety, not just the one page.
To Councilmember Buckshnis' question about amending the budget, that may depend on what one
considers an amendment; for some a budget amendment is a new appropriation of money; for others, a
budget amendment is any change to the budget book. That is an issue he and Finance Director Shawn
Hunstock are still discussing. His preference would be that any changes to the budget book be done via a
budget amendment. He had not realized until today that the appendix had not been included in the
preliminary budget. The funds for this proposal were included in the final budget so there is no new
appropriation. Whether that is considered a budget amendment, reasonable minds could disagree.
Councilmember Buckshnis suggested delaying this to allow review by the Finance Committee next week
and bring it forward as an amendment to the budget book. Mayor Earling responded that could be done;
the reason he moved forward with this proposal was concern by constituents and some Councilmembers
that there is no one on point on the second floor on the north side of the building. Community
Services /Economic Development Director Stephen Clifton occasionally provides assistance and he
thought that Mr. Clifton had been appointed that responsibility. In fact that did not happen under Mayor
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March 6, 2012
Page 8
Haakenson or Mayor Cooper. Mayor Earling felt it was important to move forward with appointing Mr.
Chave as Acting Development Services Director to ensure someone was on point, ready to answer
questions and be responsible for Development Services. Until formal Council confirmation of his
appointment occurs, he will not ask Mr. Chave to take on that responsibility.
Observing that the appropriation is included in the budget, Councilmember Buckshnis asked whether
Mayor Earling could do an ex- factor appointment until a budget amendment occurred. Mr. Taraday
responded the City's code addresses confirmation of directors; the Mayor appoints directors and the City
Council confirms those appointments. Unfortunately, the code does not address acting or interim
directors. He felt it appropriate for the Council to confirm the appointment of the director in this case
because not having the Council confirm an acting director opens a loophole where it may not be clear
when a director is acting or permanent. He recommended in the future the Council clarify /give direction
regarding when acting directors need City Council confirmation. In the absence of clear direction in the
City code, the process is as established in Chapter 2.10. The confirmation process is to the Council's
benefit; state law does not require the City Council confirm mayoral appointment of directors. The
Council could choose in this instance to waive its confirmation power and authorize the mayor to appoint
an acting director.
Councilmember Buckshnis preferred to take the appendix to the Finance Committee next week and
handle including them in the budget as a budget amendment. In her opinion the mayor has the ability to
appoint an interim director because the funds have been appropriated. Mr. Taraday responded the City
Council can confirm Mr. Chave tonight regardless of what the Council does regarding the appendix. It
would be cleaner if the appendix had already been adopted but because they were not, the Council needs
to make the best of the situation.
Councilmember Petso inquired whether the code changes could be referred to the Public Works, Parks
and Planning Committee and returned to Council in two weeks or did it require review by the Planning
Board. Mr. Taraday responded changes to Title 2 did not go to the Planning Board. Councilmember
Fraley - Monillas commented it would also depend on what other items were on the Public Works, Parks
and Planning Committee's agenda next Tuesday.
Council President Peterson asked whether the salary range table appendix was typically included in the
budget book and was inadvertently left out. Mr. Hunstock responded the RCW states the proposed
preliminary budget must have the salary range table in it. Unfortunately it was left out at the time. There
was an assumption that the final budget document would include the same table; however, unfortunately
it was not noticed until after the budget ordinance was adopted. The Council should have been informed
at that time. He summarized the salary range table appendix was typically included in the budget book.
Council President Peterson commented there were a number of scriveners errors in the budget book and
asked whether not including the salary range table fell in that category. Mr. Taraday answered this is a
fairly significant, substantive amendment to the budget. The salary range table lists the City's employees
and what they can earn. It was not included in the proposed preliminary budget in the form of the
appendix.
Council President Peterson recognized the salary range table was not included in the form of an appendix
and asked whether the information was included in each department's budget. Mr. Hunstock responded
positions are mentioned in the budget narrative; however, the dollars are aggregated for all positions
within that department and the positions and salaries would not be identified unless there was only one
position in the department.
Councilmember Fraley- Monillas asked whether it would be quicker to bring this part through the Finance
Committee and ask the City Attorney to draft a code update and return it to the Council in two weeks. She
Edmonds City Council Approved Minutes
March 6, 2012
Page 9
did not anticipate inclusion of the appendix in the budget would be a major undertaking for the Finance
Committee. Mr. Taraday agreed he could draft a code amendment for consideration by the Council in two
weeks. Councilmember Fraley - Monillas recommended the Council proceed in that manner.
Councilmember Yamamoto observed the Council was in basic agreement regarding the confirmation of
the mayor's appointment of Mr. Chave as the Acting Director of Development Services.
COUNCILMEMBER YAMAMOTO MOVED, SECONDED BY COUNCIL PRESIDENT
PETERSON, TO CONFIRM THE MAYOR'S APPOINTMENT OF ROB CRAVE AS ACTING
DIRECTOR OF DEVELOPMENT SERVICES.
Mayor Earling commented there has been some sense of urgency regarding having a person in place as
Acting Director of Development Services. He understood the Council's interest in a policy change
regarding future appointments, pointing out this is an interim position to last no longer than the end of the
year. Based on the sense of urgency expressed by some citizens and some Councilmembers, he would like
to have Mr. Chave in this position and for the Council to make policy amendments regarding how interim
versus permanent directors are appointed in the future.
Councilmember Bloom commented on the need to review the job specifications. Mayor Earling
responded the limited staff in the Human Resources Department is in the process of writing job
descriptions. He was amenable to reviewing all directors' job descriptions, commenting the directors do a
great job for the City.
Councilmember Fraley - Monillas understood Mr. Taraday to say that as long as the funding was in place
for this position and the position was approved, the City Council really does not have any say who is
appointed as an acting/interim director. Mr. Taraday clarified he said the code is silent regarding the
process for confirming acting directors. He preferred the code not be silent and state either acting
directors come to Council for confirmation or they do not. He looked to the Council to direct him whether
they wanted to have the ability to confirm the mayor's appointment of acting directors.
Councilmember Fraley - Monillas observed under the current code, it was not the Council's responsibility
to confirm an acting director that is a funded position. Including the appendix in the budget book and the
code amendment regarding whether the mayor's appointment of an acting/interim director requires
Council confirmation are the Council's responsibilities. Mr. Taraday commented the line between an
acting and a permanent director may not always be clear, whether Council confirmation was required or
not. Councilmember Fraley - Monillas agreed that needed to be clarified in the code.
Council President Peterson advised he has scheduled discussion regarding the salary range table on the
Finance Committee agenda as well as code language for Chapter 2.10. He preferred to pass the motion to
confirm the mayor's appointment of Mr. Chave as Acting Development Services Director and then give
direction to the City Attorney about the code amendment.
Councilmember Buckshnis found the ordinance acceptable as long as reference to the salary range table,
page 211 was removed. She offered that as a friendly amendment to the motion which Councilmember
Yamamoto accepted.
Councilmember Petso asked whether the motion did not include the ordinance and was simply confirming
the mayor's appointment of Mr. Chave as the Acting Director of Development Services. Councilmember
Yamamoto clarified his motion was only confirmation of the mayor's appointment of Mr. Chave.
Councilmember Buckshnis withdrew the friendly amendment.
Councilmember Bloom requested review of the specification of the job description be added to the Public
Safety and Personnel Committee's agenda. Council President Peterson agreed.
Mayor Earling restated the motion as follows
Edmonds City Council Approved Minutes
March 6, 2012
Page 10
TO CONFIRM THE MAYOR'S APPOINTMENT OF ROB CRAVE AS ACTING DIRECTOR OF
DEVELOPMENT SERVICES.
THE VOTE ON THE MOTION CARRIED UNANIMOUSLY.
8. PRESENTATION ON THE SHORT & LONG -TERM BUDGET CHALLENGES.
Mayor Earling thanked the Council for the opportunity to present basic information regarding the budget
to inform the public of the coming budget challenges. He noted everyone in the last campaign used the
economic challenges facing the City as a talking point. Due to the seriousness of the situation, there needs
to be a conversation sooner than later regarding how the community will face those challenges. This
presentation is intended only as an introduction to the revenue and expense projections along with basic
information regarding potential revenue sources. He clarified the Council has extensive budget
information, background and expertise, much deeper than will be presented tonight. Over the next several
months he will undertake a process to help the public understand the challenges the City faces. This is
intended to be an introduction to further information that will be presented and discussed over the next
several months.
Staff and he have developed a public awareness program that will be provided to the Council and public
next week that will help the community establish priorities during the budget process. The community
needs to be engaged early and often and this is intended to be the beginning of that several month
discussion. He gave a similar presentation to the Chamber of Commerce about ten days ago and it was
well received.
Mayor Earling described where property taxes go:
0 Schools: 64%
• County: 9%
• Port, Library, Hospital: 7%
• EMS: 4%
0 City: 16%
Mayor Earling described property taxes for a home with an assessed value of $375,000:
Taxing District
2012 Tax per Average
Residence $375,000 AV
City (bonds)
$61.92
City (EMS)
187.50
City Regular
622.80
Subtotal (City Assessed Tax)
$872.22
$72 /month
Port
43.45
County
368.37
Hospital
40.38
Sno -Isle Regional Library
187.48
Schools (local)
1,763.73
Schools (state)
892.06
Subtotal (Other Districts Assessed Tax)
$3,295.47
Total Assessed Tax
$4,167.69
$347 /month
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March 6, 2012
Page 11
Mayor Earling described the distribution of sales tax by jurisdiction:
• State: 6.50%
• County: 1.25%
• Transit: 0.90%
• City: 0.85%
Mayor Earling summarized property tax and sales tax provide approximately 55% of the City's total
revenue. Property taxes can only increase I % /year without a levy lid lift. Sales taxes have flatlined for the
past 2 -3 years with slight increases. The problems facing the City include decreasing assessed values
which result in lower property tax collections, a 1% cap on property tax increase although inflation is
approximately 3-4% /year and flatlined sales tax, however, the gap between expenses and revenues will
continue to widen over time.
Mayor Earling displayed a 2012 list of all 33 of the City's funds. A future presentation will address
restrictions on the use of some of these funds. He highlighted the Emergency Financial Reserve which has
a balance of approximately $1.97 million that is set aside for an emergency. In addition the City has a
Public Safety Emergency Reserve with a balance of approximately $1.3 million. The funds in the Public
Safety Emergency Reserve are the proceeds of the sale of Fire Department equipment to FDl.
Mayor Earling displayed a graph of total General Fund revenue compared to total General Fund
expenditures 2011 estimate, 2011 budget, and 2013 — 2021 projected, explaining revenues and
expenditures approximately balance in 2012. In 2013, expenditures begin to exceed revenues. That
continues to worsen over time and unlike the $800,000 shortfall in 2013, the shortfall in future years
grows to $3 -$3.5 million/year.
Mayor Earling displayed a graph of the change in ending fund balance compared to cumulative ending
fund balance 2011 estimate, 2011 budget, and 2013 . — 2021 projected, pointing out there is a substantial
problem in 2019, 2020.
Mayor Earling explained there are several ways to address the problem. The first is to cut the budget. He
referred to Mr. Page's comparison of Edmonds' population and number of employees in Mountlake
Terrace and Lynnwood. When one of the City's former Finance Directors Dan Clements identified the
long term problem, the City acknowledged the problem in 2003 and laid off 23 staff members. Since then
the Council has made further reductions in the budget, merging positions or leaving positions vacant. He
summarized relative to other cities, Edmonds is lean with regard to number of staff. Edmonds has 199
staff members and a population of 40,000. By contrast, Mountlake Terrace has a population of slightly
less than 20,000 and a staff of 240. He clarified he was not casting dispersions on Mountlake Terrace but
pointing out that a city considerably smaller than Edmonds has more staff members. One of his concerns
was that much deeper cuts would affect programs.
A second way to address the problem would be to ask the voters to approve a levy lid lift. He recalled the
City had three issues on the ballot in 2011, a transportation levy, a park levy and a General Fund levy; all
three were decisively defeated. The highest percentage was 42% yes. Anyone involved in a campaign
knows that 42% of the vote is a decisive loss. He assumed the Council would discuss a levy lid lift during
the year, whether to have a levy lid lift, how it should be structured, etc. He remarked the Council's
debate last year regarding the levies occurred over several months and when a vote was taken, the Council
was divided on the levies. If the Council considers a levy lid lift, he recommended there be substantial
agreement among Councilmembers.
A third way to address the problem is economic development. He noted Community Services /Economic
Development Director Stephen Clifton has done a wonderful job with regard to economic development;
Edmonds City Council Approved Minutes
March 6, 2012
Page 12
there are new businesses like Dick's Drive In, Goodwill, new restaurants and other businesses, a medical
complex near the hospital, etc. It will take until 2014 -2016 before the convincing, long term benefits of
economic development will be realized.
A fourth way would be for everyone to pray the economy does a remarkable turnaround by the end of the
year; he did not believe that type of turnaround would be possible. He anticipated a combination of all
four ways will be necessary. He summarized the shortfall beyond 2013 becomes very serious. He
acknowledged the $800,000 shortfall in 2013 was an estimate. For example, there is a proposal in the
legislature that would eliminate approximately $230,000 in liquor tax, increasing the shortfall to over $1
million. Next week staff will provide the Council and public a plan to help the public begin to understand
the challenges facing the City. Coverage of this issue will continue in the Edmonds Beacon, My Edmonds
News, and the Weekly Herald.
In addition to the documentation provided, Councilmember Plunkett suggested also providing the five
year General Fund projection that includes actual and targeted ending fund balance. Mayor Earling agreed
that could be provided. He assured additional documentation will be provided in the coming months. He
referred to the graph of the change in total General Fund revenue compared to Total General Fund
expenditures, explaining it included the $1.3 million Public Safety Reserve. The shortfall continues to
grow even when those funds are included, at best prolonging the agony up to a year. He pointed out the
difficulty with a reserve is that once it is spent, it is gone.
Councilmember Buckshnis explained the Finance Committee is developing a new reserve policy due to
new standards from the Financial Accounting Standards Board and the Governmental Accounting
Standards Board.
9. CONTINUED DISCUSSION OF PROPOSED ORDINANCE AMENDING EDMONDS CITY
CODE SECTION 10.75.030(A)(2), EXTENSION OF ECONOMIC DEVELOPMENT
COMMISSION SUNSET DATE AND OTHER ITEMS RELATED TO THE ECONOMIC
DEVELOPMENT COMMISSION.
Community Services /Economic Development Director Stephen Clifton explained on December 20, 2011,
the City Council expressed a desire to amend Edmonds City Code Section 10.72.030(A)(2) to read,
"Identify new sources of revenue as a direct result of economic development projects for consideration of
City Council." As requested, a draft ordinance was prepared and presented to the Council on January 23,
2012. At that meeting, the Council chose to not take action on the draft ordinance, but instead, requested
this topic be discussed further during the February 2012 City Council retreat. The Council did take action
on Ordinance 3868, extending the sunset date of the Economic Development Commission for 120 days or
April 29, 2012.
During the February 2012 Council retreat, the Council discussed the amendment and extending the sunset
date as well as the following items:
• Clarify the Council liaison's role
• Have a Port liaison rather than Port Commissioners serving as members
• Amend the language so members are not elected officials
• Make Commission appointments later
• Stagger Commissioners' terms
Councilmember Buckshnis asked why extension of the sunset date beyond April 29, 2012 was not
included in the ordinance. Mr. Clifton answered that was a topic of discussion for the Council. If the
Council chooses to extend the sunset date, a draft ordinance will be prepared. Councilmember Buckshnis
Edmonds City Council Approved Minutes
March 6, 2012
Page 13
clarified the proposed ordinance addresses only the change to the powers and duties of the Commission.
Mr. Clifton agreed.
As the Council liaison to the EDC for the past couple years, Councilmember Buckshnis recommended
extending the sunset date and agreed with the concept of staggering terms.
Councilmember Plunkett suggested staggered Commission terms would require an amendment to the
ordinance. Mr. Clifton suggested returning an ordinance to the Council amending the original ordinance
establishing the EDC to include language regarding staggered terms. Councilmember Plunkett observed
the ordinance would also need to be amended to prelude Commissioners from being elected officials and
clarifying the role of the Council liaison. Staff could request the Port appoint a liaison.
Council President Peterson suggested the ordinance needed to be amended with regard to the sunset date.
COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS,
TO APPROVE ORDINANCE NO. 3876, AMENDING SECTION 10.75.030 AS PRESENTED.
COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS,
TO ESTABLISH 4 -YEAR STAGGERED TERMS, 2 YEARS EACH WITH THE STIPULATION
THAT NO ELECTED OFFICIALS SERVE ON THE COMMISSION.
Councilmember Petso preferred to approve only the amendment proposed in the packet and have the
other amendments such as staggered terms, duration, etc. be presented in writing at a future meeting.
Council President Peterson responded he might agree with Councilmember Petso if the Council had not
had extensive discussion regarding these issues at the retreat. It is important to provide a forward motion
to the EDC. He clarified the EDC would be extended for four years and each Councilmember appoints
two members, one appointee would be for two years and one for four years. The intent is for all
Councilmembers and the Mayor to appoint members; existing members are encouraged to apply so that
there is some continuity.
Mr. Clifton suggested amending Ordinance No. 3735 as follows:
• Extend the EDC for four years
• Stagger terms
• Not have elected officials serve on the EDC
• Amend Section 10.75.030
COUNCILMEMBER PLUNKETT WITHDREW HIS MOTIONS WITH THE AGREEMENT OF
THE SECOND.
It was the consensus of the Council to proceed as Mr. Clifton suggested. Council President Peterson
advised it would be scheduled on the March 20 agenda.
Councilmember Bloom inquired about the role of the liaison. Mr. Clifton explained the liaison attends
meetings, participates in discussions but is a non - voting member. The liaison also reports to the
Council /Port on issues discussed and the status /progress being made.
Councilmember Bloom asked why there were originally two liaisons to the EDC and now there is only
one plus an alternate. Council President Peterson recalled there was a Council Economic Development
Committee where two Councilmembers met quarterly with Mr. Clifton and the EDC. In the transition
between the committee and the commission, there were two Councilmembers involved with the EDC.
Councilmember Plunkett welcomed Councilmember Bloom providing language clarifying the Council
Edmonds City Council Approved Minutes
March 6, 2012
Page 14
liaison's role. Mr. Clifton relayed Mr. Taraday's suggestion to include a fifth amendment, stating that a
Council liaison exists, similar to the Tree Board.
10. COUNCIL APPOINTMENTS TO FILL THREE VACANCIES ON THE CITIZENS TREE
BOARD
Council President Peterson announced the following Council appointments to the Tree Board:
• Councilmember Fraley - Monillas appoints Rebecca Wolfe
• Councilmember Yamamoto appoints Steve Hatzenbeler
• Councilmember Plunkett appoints Susan Paine
COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER
PLUNKETT, TO CONFIRM THE APPOINTMENT OF REBECCA WOLFE, STEVE
HAZENBELER AND SUSAN PAINE TO THE TREE BOARD. MOTION CARRIED
UNANIMOUSLY.
11. MAYOR'S COMMENTS
Mayor Earling encouraged the public to attend one of the strategic plan charrettes:
• Wednesday, March 14, 6:00 — 8:00 p.m. at the Edmonds Conference Center at 4"' & Bell
• Monday, March 19, 6:00 — 8:00 p.m., Library Plaza Room
Mayor Earling reported 60 people have signed up to attend the charrettes; there is space for many more.
He urged the public to visit the City's website to sign up to attend the charrettes. The charrettes are
important because they lay the groundwork for planning and help set priorities for the community.
12. COUNCIL COMMENTS
Councilmember Buckshnis announced her plans to attend the charrettes. She planned to visit businesses
on Highway 99 to personally invite them to attend.
Councilmember Buckshnis thanked the Floretum Garden Club for their $10,000 donation for the Old
Milltown Park, a substantial amount of money raised by a club with approximately 124 members. The
Garden Club also donated $2,000 for a bench dedicated to Rachel Sedgefield.
Councilmember Fraley- Monillas thanked all the applicants for the Tree Board, noting it was a very
difficult decision as all the applicants were very qualified.
Councilmember Fraley - Monillas commented on bloggers who she considered armchair quarterbacks,
finding it offensive that because someone moved their office from Edmonds to Seattle that meant they no
longer lived in Edmonds. She has lived in Edmonds for the past 27 -28 years and worked in Seattle before
retiring. She is currently working in Kitsap County and has traveled all over the country in the past two
years which does not mean she is no longer an Edmonds resident. She found it inappropriate to question a
Councilmember because he owns multiple properties. Councilmembers swear an oath when they take
office, one of which is to be honest and true. She felt it inappropriate for citizens to bring up what is said
in blogs at a Council meeting, making wild allegations that a Councilmember is no longer a resident of
Edmonds because he owns multiple properties and has moved his office. She apologized to the
Councilmember who was talked about in the blog.
Councilmember Bloom encouraged Student Representative Springer to invite students to participate in the
strategic plan charrettes.
Edmonds City Council Approved Minutes
March 6, 2012
Page 15
Council President Peterson announced a workshop on budgeting by priorities by Redmond's Finance
Director Mike Bailey is scheduled on Thursday, March 22 at 6:00 — 8:00 p.m. in Council Chambers. He
asked for Council input regarding whether to have the workshop videotaped. Although it may be good to
inform the public about the concept of budgeting by priorities, he was inclined not to have the workshop
videotaped as the Council has not made a decision to proceed with that method.
Council President Peterson reported Mayor Earling and he met with staff from Congressman
McDermott's office. Edmonds will be in the 7`'' Congressional District, represented by Congressman
McDermott. Congressman McDermott's staff toured several of the projects underway including Main
Street, Sunset Avenue and parks projects as well as toured the Edmonds Center for the Arts (ECA) which
was busy with high school students involved in a regional orchestra contest. Congressman McDermott
will visit Edmonds Friday and will also tour the ECA.
Councilmember Yamamoto reported Councilmember Petso and he plan to visit businesses in the
International District on Highway 99 to encourage them to get involved in the strategic planning process
and to involve them in the community. He hoped to make the International District an attraction in
Edmonds.
Student Representative Springer reported he will encourage high school students to participate in the
strategic plan charrettes.
Mayor Earling referred to Councilmember Fraley- Monillas' comments, clarifying everyone appreciates
My Edmonds News, the Patch and Edmonds KOMO. Her comments were directed at the bloggers who
comment on their articles.
L N 10 0 " 91i',
With no further business, the Council meeting was adjourned at 9:20 p.m.
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March 6, 2012
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