Everett City Council

W ednesday, November 07, 2012 The regular meeting of the Ev erett City Council was called to order at 6:30 p.m., Nov ember 7, 2012, in the City Council Chambers of the Ev erett City Hall, President Gipson presiding. Upon roll call it was f ound that May or Stephanson and Council Members Roberts, Moore, Gipson, Burke, Stonecipher, and Af f holter were present. Council Member Hatloe was excused. Council Member Af f holter led the Pledge of Allegiance. The minutes of the October 31, 2012, Ev erett City Council meeting were approv ed as printed. MAY OR 2013 BUDGET MESSAGE Nov ember 7, 2012 Council President Gipson Members of City Council Ev erett residents Good ev ening Council President Gipson, members of the City Council and residents of Ev erett. Today, I present y ou with a proposed balanced budget that f ocuses the City ’s limited resources on core public serv ices f or our community. My proposed 2013 budget adheres to the deeply embedded principles that make Ev erett a strong community. It upholds public saf ety as the top priority ; but also supports—to the extent possible—inf rastructure maintenance; serv ices—such as parks, libraries, the Carl Gipson Senior Center; and popular community ev ents that are all important to the quality of lif e of our residents. Our 2013 General Gov ernment f orecast f or annual rev enues is $112 million. Although this represents a slight increase ov er 2012, it is still down nearly $7.4 million or approximately 6.2 percent f rom our total receipts in 2008. We hav e been working hard to preserv e essential public serv ices since rev enues began to decline in mid-2008, and the budget balancing decisions become more dif f icult with each passing y ear. Despite some improv ement in the aerospace industry, our economic recov ery remains v ery slow, due in part to of f setting losses, such as the closure of the Kimberly -Clark plant in early 2012. We began the 2013 budget process with a $10.6 million gap between the General Gov ernment’s annual rev enue and expenditure f orecast. Closing that gap required many dif f icult decisions. The most signif icant include: • committing to holding a minimum of 25 v acant positions open throughout the y ear • establishing monthly contributions f or health benef its f or elected of f icials and appointiv e employ ees • eliminating departmental M&O increases f or the 4th y ear in a row • making 2010 temporary budget reductions permanent, and requiring departments to f urther reduce spending in 2012 so that the sav ings can be used to pre-pay 2013 reserv e contributions; and • suspending the annual contribution to the LEOFF 1 police and f ire pension f unds. Ev en with this action, the City will still be on track to f ully f und its LEOFF 1 Pension obligation by the y ear 2030. The City is making ev ery ef f ort to minimize the impact that these and prev ious budget reductions hav e on our residents. While we hav e been able to av oid some of the more drastic measures other cities hav e f aced as a result of the recession, it is f rankly not possible to continue to cut f unding y ear af ter y ear without hav ing some ef f ect on municipal serv ices. Whether it is extending the lawn mowing cy cle at our parks or a longer waiting list f or sidewalk repair, it is inev itable that our ability to maintain serv ice lev els will be impacted. Furthermore, until we see a trend toward substantial improv ement in our rev enues, we must be prepared to take additional steps to reduce spending to ensure that we will continue to liv e within our means and keep Ev erett on a sound f inancial f ooting. As with most cities, labor makes up the majority of the ov erall budget. Controlling costs in this area will require the cooperativ e ef f orts of City leadership and our labor unions. Future contract negotiations will f ocus on mov ing away f rom CPI as a guiding index f or growth and toward establishing set parameters f or wage increases and health benef its that are both predictable and sustainable ov er the long term. Our taxpay ers can be conf ident that we will continue to be f iscally responsible, and make prudent and disciplined decisions on the public’s behalf . This means that, as the economy improv es, we will ref rain f rom expanding operations and use any upward trend in rev enues to f irst build on contributions to capital f unds and other reserv es. Ev erett has a time-honored tradition of looking toward the long-term f inancial health of the City as budget decisions are weighed. This is ev idenced in our commitment to building and maintaining reserv es, caref ul inv estments in the City ’s core inf rastructure, holding the line on operating costs by limiting the size of gov ernment, f ostering a culture that seeks to make the most of ev ery dollar, and restricting debt issuance to only those projects that hav e a stable, dedicated source f or repay ment. The importance of keeping f iscal sustainability at the f oref ront of decisions that af f ect the City ’s budget cannot be ov erstated, and nothing puts the City ’s f uture more at risk than taking on additional debt. In keeping with our philosophy on debt issuance, we are successf ully f unding important capital inv estments with a combination of cash-on-hand and grants. Recent and upcoming examples include our new municipal court, the Senior Center remodel, Fire Station 1’s earthquake retrof it, the sy nthetic soccer and lacrosse f ield replacement at Kasch Park, the Broadway Bridge replacement, and our ongoing street ov erlay program. Standard & Poor’s recent reaf f irmation of Ev erett’s high AA+ bond rating and its top rating f or f inancial management prov ides a key indication that our conserv ativ e approach is serv ing the City and its residents well. While we do not anticipate a signif icant economic recov ery in the near-term, I am conf ident that strong growth will ev entually occur. I f urther believ e that achiev ing that growth will require city leaders to continue to press f orward on the important initiativ es that will def ine Ev erett’s f uture as a prosperous community that is attractiv e to businesses and prov ides a high quality of lif e f or our residents. First and f oremost on this list is our ef f ort to cultiv ate here at home the educated workf orce that businesses will need in a growing economy. With that in mind, establishing a f our-y ear univ ersity in Ev erett has been a long-standing ambition f or this community. We hav e been on notice f or some time now that Boeing, our largest employ er, is concerned about a shortage of skilled engineers to replace retiring workers ov er the next f iv e to ten y ears. To address this concern we hav e been working in partnership with Washington State Univ ersity to dev elop a f our-y ear engineering degree program here in Ev erett. We play ed a lead role in the passage of 2011 legislation that will enable WSU to run Ev erett’s Univ ersity Center by 2014. Additionally, in 2012 we helped secure state f unding f or WSU to create 60 new f ull-time-equiv alent engineering student slots at Univ ersity Center. The other major undertaking that I would like to highlight is the Central Waterf ront Plan. On occasion, when one door closes another one opens. While we deeply regret the loss of Kimberly -Clark, we are mindf ul that we hav e, at the same time, been presented with a once in a generation opportunity to reshape the f ace of Ev erett’s core. This is a signif icant responsibility that we take v ery seriously. Considerable ef f ort is going into the dev elopment of the Central Waterf ront Plan, which will address land use and redev elopment concepts f or reuse of approximately 93 acres of prime real estate that spans f rom the southern end of the Central Business District to Port Gardner Bay. I would like to take a moment to thank community members who hav e prov ided input into this critical process as well as the City Council and staf f who hav e made it a priority to ensure that we create an outcome that will serv e the best interests of our City, its businesses, and residents f or y ears to come. In closing, it bears repeating that we hav e a lot of hard work ahead of us. We will need to continue to be thoughtf ul as we ev aluate what is important to our mission and guide the City ’s operations and inv estments accordingly. I want to thank the City Council, community v olunteers, and City employ ees f or partnering with my administration to keep Ev erett mov ing f orward, and f or y our commitment to working together to make Ev erett a v ibrant and desirable place to work and liv e. Sincerely, Ray Stephanson May or COUNCIL Council Member Burke commented that during a meeting this week with the principal of Ev erett High School and other citizens, the group expressed appreciation to Chief Atwood and the Ev erett Police Department f or their ef f orts in keeping Clark Park saf e. CITY ATTORNEY The City Attorney had no comments. CITIZEN COMMENTS Jay Himmelman, Sue Habeck, and Diane Mosman, all of Ev erett, commented about the damage to their homes as a result of the Valley View landslide. City Attorney Jim Iles stated that council members were not in a position to discuss the matter due to the threat of litigation, and conv ey ed the City ’s position on the issue. Alice Lorigan, Ev erett, commented on the change to Ev erett Transit bus f ares that was presented on October 31, 2012, specif ically, the increase in the cost of a monthly pass. COUNCIL BRIEFING AGENDA Adopt a Resolution placing the Howard S. Wright House at 2112 Rucker Av enue on the Ev erett Register of Historic Places. Presented by Jan Meston, Planning Council Members Roberts and Stonecipher thanked property owner Bill Belshaw and f amily f or their work in restoring the home. Property Transaction with Touchstone Corporation Presented by Tim Benedict, Legal COUNCIL BILL NO. 1210-49 FIRST READING: AN ORDINANCE creating a special improv ement project entitled, “City wide Saf ety Improv ements,” Fund 303, Program 095, to accumulate all costs f or the improv ement. Presented by Dav e Dav is, Public Works COUNCIL BILL NO. 1210-50 FIRST READING: AN ORDINANCE creating a special improv ement project entitled “Pacif ic Av enue and Broadway Saf ety Improv ements,” Fund 303, Program 096, to accumulate all costs f or the improv ement Presented by Dav e Dav is, Public Works PROPOSED ACTION ITEMS COUNCIL BILL NO. 1210-48 SECOND READING: AN ORDINANCE establishing rates f or Ev erett sewer serv ice and surf ace water management, rates f or water and f iltration f or inside and outside City customers, rates f or wholesale master meters, and repealing Ordinance Nos. 3096-08 (EMC 14.04.020) and 3156-09 (EMC 14.16.710-13) CONSENT ITEMS: Mov ed by Council Member Roberts, seconded by Council Member Moore, to approv e the f ollowing consent items: RESOLUTION – CLAIMS To adopt Resolution No. 6556 acknowledging the pay ment of audited and approv ed claims against the City of Ev erett in the amount of $2,413,315.57 f or the month of October 20, 2012, through October 26, 2012. RESOLUTION – PAY ROLL To adopt Resolution No. 6557 acknowledging the pay ment of audited and approv ed pay roll claims against the City of Ev erett in the amount of $3,345,250.29 f or the period ending October 20, 2012. STREET CLOSURE – ANNUAL FOOD DRIVE To authorize the closure of Colby Av enue, 24th to 25th Street, on Nov ember 11, 2012, 4:30 a.m. to 1:30 p.m., f or an Annual Food Driv e sponsored by Ev erett High School with the condition that Ev erett High School personnel be on site to prov ide immediate access f or emergency v ehicles in the ev ent of an emergency. BID CALL – SAFETY IMPROVEMENTS PROJECT To authorize a call f or bids f or the City Center Saf ety Improv ements Project. EASEMENT CLOSURE – FAMILY FESTIVAL To authorize the closure of the easement between the Ev erett Perf orming Arts Center and the Ev erett Plaza on December 13, 2012, 4 p.m. to 6:45 p.m., f or a f amily f estiv al sponsored by the City of Ev erett. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. ACTION ITEMS: AGREEMENT AMENDED – WPCF/CLEAN WATER PERMIT APPLICATION Mov ed by Council Member Stonecipher, seconded by Council Member Burke, to authorize the May or to sign Amendment No. 1 to the Prof essional Serv ices Agreement with ICF Jones & Stokes, Inc. in support of the City ’s Clean Water Permit application f or the Water Pollution Control Facility f or the additional expenditure of $4,920.00. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. AGREEMENT AMENDED – MUNICICPAL COURT DESIGN Mov ed by Council Member Af f holter, seconded by Council Member Burke, to authorize the May or to sign Amendment No.1 to the Prof essional Serv ices Agreement with the DLR Group f or the design of the Municipal Court in the amount of $35,960.00. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. AGREEMENT – INTERPRETER REIMBURSEMENT PROGRAM Mov ed by Council Member Roberts, seconded by Council Member Moore, to authorize the May or to sign the Interagency Agreement between the State of Washington Administrativ e Of f ice of the Courts and the Ev erett Municipal Court to continue the State f unded Interpreter Reimbursement Program f or 2013. Victor Harris, Ev erett, inquired about the inclusion of sign language in the agreement. City Attorney Iles noted that the agreement does cov er serv ices f or indiv iduals with hearing impairment; howev er, he would hav e to report back to city council regarding the lev el of serv ices prov ided. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. RESOLUTION – HUMAN NEEDS GRANT FUNDING Mov ed by Council Member Roberts, seconded by Council Member Moore, to adopt Resolution No. 6558 establishing Human Needs priorities f or 2013 Human Needs Grant f unding. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. GRANT AWARD – BULLETPROOF VEST PARTNERSHIP Mov ed by Council Member Af f holter, seconded by Council Member Roberts, to authorize the May or to accept the receipt of f unds of the FY 2012 Bulletproof Vest Partnership award f rom the United States Department of Justice in the amount of $20,475.00. Roll was called with all council members v oting y es except Council Member Hatloe who was excused. Motion carried. PUBLIC HEARING – 2013 BUDGET Council President Gipson opened a public hearing regarding the f irst 2013 Budget Hearing. Council President Gipson inv ited public comment. There was no response. The public hearing will remain open until conclusion of the third and f inal budget hearing. The Ev erett City Council meeting adjourned at 7:14 p.m. ___________________________ City Clerk Read and approv ed as printed. ____________________________ President