Councilmembers present:

Donald MacGilvra, Peggy Gerdes, Carolyn Armanini, Dwight Thompson, Mary Jane Goss, Nate Herzog

Councilmember absent:

Alan Kiest (excused)

Staff present:

David R. Hutchinson, Mayor; Michael Ruark, City Attorney; John Rogers, Police Chief; Scott Drown, Administrative Sergeant; Sarah Phillips, Government and Community Relations Coordinator; Joyce Papke, Finance Director; Ty Peterson, City Planner; Tema Nesoff, Human Services Coordinator; Susan Stine, City Clerk; Evelyn Jahed, Deputy City Clerk; Linda Page, Police Secretary

Others present:

30 visitors

Mayor David Hutchinson opened the public hearing on Estimated Revenue and Proposed Expenditures/Proposed 2000 Budget at 7:19 p.m.

Nelson Lee, 18015 53^rd Ave. NE, chair for the Human Services Commission, presented to council the commission’s proposed budget. He discussed issues related to the teen center, teen activity group, senior services programs and the domestic violence program. He noted the YMCA’s interest in the programs for youth and teens.

In response to a question from Cmbr. MacGilvra, Lee discussed in more detail the position of the domestic violence victim advocate. Human Services Coordinator Tema Nesoff discussed the 1999 budget for the domestic violence advocate staff person.

Parks and Recreation Commission Chair Carol Dahl and commissioners Mamie Bolender, Raj Manhas, Carol Gnojewski and Debra Born presented their budget request for the Year 2000 to council. Dahl discussed the commission’s request for funds for making enhancements to the city’s parks as well as funds for the city’s seasonal activities. Dahl discussed various park sites and proposed park improvements. Dahl noted agencies and programs offering grant funding for specific projects; however, matching funds may be required on some grants.

In response to a question from Thompson, Dahl said it would be important to review the process on the Morris property and the promises made to citizens.

Manhas noted that the proposed budget document is difficult for citizens to understand. He recommended pie charts and other aids to assist citizens. He noted that the parks and recreation budget is approximately 3 percent of the budget. Gerdes suggested that the commission assist the city in finding creative ways to combine services and programs with those offered by other cities.

Born said the commission continues to view the Horizon View property as a very valuable asset. She said the commission has a strong interest in having a playfield for recreational activities in the city.

Gnojewski said the commission would like to partner with other parks and recreation commissions in other cities. She said the Shoreline Arts Council provides many important services for the city and encouraged the council to continue their support of the arts.

Mayor David Hutchinson called the regular meeting to order at 7:35 p.m. and said if there is no objection, the public hearing comments will continue.

Enid Brown Grass, 16615 35^th NE, Library Commission, thanked the council for their continued support of the library. She noted that the library is held in high esteem by citizens and said the vote to annex to the library district is evidence. She said the library is a vital and growing part of the community and noted the attendance at the Friday night programs. She encouraged the council to include funding for these programs.

In response to MacGilvra, Grass said the Friends of the Library volunteers are a valuable community resource and noted that the group sponsors a successful after-school homework program.

Mike Lantz, 18225 47 Pl. NE, made suggestions for signs regarding the drunk driving laws. He said he is a leader in Boy Scout Troop 348 and said they are interested in potential Eagle Scout projects. Lantz discussed the recent vote on Initiative 695 and said he helped Tim Eyman get started. He encouraged the city to take a strong stand and get money from the state.

Margaret Marshall, 3537 NE 165^th St., discussed the loss of funds to the city because of Initiative 695, and she noted that Dr. David Peterson had volunteered to do an empirical study to determine what taxpayers are willing to pay for. She expressed concern regarding the properties that the city owns and recommended mortgaging or selling these properties.

Corrin Pierce, 2102 NE 175^th, talked about the various activities she has participated in at the teen center and encouraged the council to continue funding programs for teens.

Betsy Feasel, 17561 Bothell Way NE, expressed her concerns about the city’s ownership of the Morris property and said it was an extravagance the city cannot afford. She said this property would not serve the general public and has no parking facilities. She said that she couldn’t see a million dollars being tied up in this property.

Ros Bird, 16061 37^th Ave NE, said funding for the arts is a very small investment for the city and that the arts are the soul of the community. She encouraged the council to find ways to fully fund the arts programs.

Mary Fung Koehler, 4652 NE 203^rd PL, said she is willing to negotiate the sale or purchase of any property that the city may buy or sell.

Ron Exum, 19604 30^th Ave. NE, Human Services Commissioner, thanked council for restoring some of the funds that the commission had requested for programs. He discussed the importance of the domestic violence victim advocate position and asked council to continue funding this program.

John Gwazdauskas, 3722 NE 180^th Street, said that quality of life is important here and that he likes the spirit of volunteerism in our city. He expressed his support for parks and recreation and the arts council. He said the city needs to find the funding for these activities and urged council to consider these programs to the community.

There being no further comments, the public hearing was closed at 8:29 p.m.

A five-minute recess was called for at 8:30 p.m.

The meeting was resumed at 8:40 p.m.

Thompson requested that council suspend the rules and take Citizen Comments if any next on the agenda, followed by Item 7/Resolution 571/Consideration of Planning Commission Recommendation on Trillium Subdivision, File No. SUBD 97-16 (Closed Record Hearing) on second reading calendar. He said the completion of budget reports by staff should follow along with Item 8/Authorize Mayor to Sign Real Estate Purchase and Sale Agreement, Reciprocal Easement Agreement on the second reading calendar.

Resolution 571/Consideration of Planning Commission Recommendation on Trillium Subdivision, File No. SUBD 97-16 (Closed Record Hearing)

On the advice of the city attorney, Thompson moved that Resolution 571be taken off the agenda and that File No. SUBD 97-16, Trillium Subdivision, be remanded to the Planning Commission for reconsideration of Conclusion 10 involving slopes and also wetland mitigations.

Peter Folkins, New Ventures Group, consultant for the city of Lake Forest Park, said he was contacted by Windermere Real Estate pertaining to documents regarding the purchase and sale agreement of the Select Grill property and the Ballinger Way city hall building. Folkins said they expressed concern that this matter was not moving ahead quickly enough.

City Attorney Ruark recommended that the council could authorize the mayor to sign when the documents are consistent with previous council discussions.

MacGilvra moved to authorize the Mayor to execute on behalf of the city the real estate purchase and sale agreement for the Select Grill property when the document is in its legally enforceable form and in accordance with previous council discussions.

Thompson moved to authorize the mayor to execute on behalf of the city the real estate agreement for the sale of the Ballinger Way city hall building and to negotiate an acceptable reciprocal easement agreement.

Armanini seconded. The motion carried unanimously.

Ruark indicated that he will inform council when this process is completed.

In response to a question from Goss, Folkins said that he would provide her with the information that she had requested earlier.

Armanini moved to schedule another meeting for December 2. MacGilvra seconded.

She explained that due to the City Administrator’s absence, the proposed budget regarding the capital improvement fund and the city hall construction fund would not be presented tonight.

In response to a question from Herzog, councilmembers agreed that these items could be added to the November 30^th meeting agenda.

It was decided that these issues would be discussed at the November 30, 1999 meeting but that council should keep the December 2, 1999 date open, if another meeting was deemed necessary.

Tema Nesoff, Human Services Coordinator, reviewed the proposed budget for human services and discussed regional services and programs.

MacGilvra inquired whether all of these memberships were mandatory, and Cmbr. Armanini suggested that this item be put on hold for further discussion when the city administrator is available to respond to questions from councilmembers.

Hutchinson reviewed items included in the proposed executive budget and noted that the salary line includes the mayor, city administrator and the community and government affairs coordinator. In response to a question from MacGilvra, Phillips discussed the request to reinstate the budget for the cable consultant and noted that the Worldwide Fiber Network Services contract would be the revenue source.

Martin Rood, 15562 Lakeshore Blvd. NE, volunteered his time and expertise on high speed internet access to the city and said that the city did not have to spend money unnecessarily.

Susan Stine, City Clerk, discussed various cuts affecting staff in the municipal services area. In response to a question from Thompson, Stine indicated that the receipting is being done by hand and noted the cost of the new system if purchased. She also emphasized the need for a computer technician and noted that if this is not funded, an increase in the training budget should be considered. MacGilvra discussed the potential use of volunteers to assist with general office work.

Armanini thanked those who participated on the budget workshop, especially Chief Rogers, Sgt. Drown, City Administrator Jacobson and Cmbr. Goss. She noted that a series of recommendations was developed at the workshop and is being presented to the full council tonight.

In response to a comment from Gerdes, Chief Rogers discussed the possible King County budget cut which would eliminate marine patrol services. Rogers said that no charge has been levied for helicopter services.

Thompson noted that the amendment is purely procedural, and councilmembers are free to amend at will.

In response to a question from Herzog, Thompson discussed the requirement to certify the property tax levy at this meeting.

In response to a question from MacGilvra, Armanini said that Cmbr. Kiest had proposed reducing the property tax by $60,000—the estimated revenue from raising the business and occupation tax.

Goss said that she does not agree with part of the budget committee’s proposal, and she has a proposal regarding the police department budget. Councilmembers discussed the process for amending the preliminary budget.

The motion to adopt the amendments approved by the budget committee and include these in the preliminary budget carried unanimously.

A five-minute recess was taken at 10:00 p.m.

The meeting was resumed at 10:10 p.m.

Armanini thanked Finance Director Papke for her work on the budget process and her participation at the budget committee meeting.

Thompson thanked State Senator Darlene Fairley for her interest in the budget process as the council works to respond to the requirements of Initiative 695.

Thompson moved for the adoption of the consent calendar as follows:

1. November 4, 1999 Council Regular Meeting Minutes
2. November 18, 1999 Finance Committee Report covering Warrants Nos. 36398 through 36461 drawn from the Claims Clearing Fund in the amount of $559,138.99 and Warrants No. 18162 through 18235 drawn from the Payroll Clearing Fund in the amount of $108,793.88.

Thompson moved to advance Ordinance 808/Amending Ordinance 272 and Increasing Business and Occupation Tax to second reading calendar.

Armanini moved to amend the proposed fee schedule on Page 2 and to increase the municipal court warrant fee from $75 to $100 and to add public defender costs using a sliding scale based on income, as suggested by the court. Thompson seconded. The motion to amend carried unanimously.

Herzog moved to amend the proposed fee schedule on Page 1 and to decrease the fee for initiative filing from $250 to $100. Goss seconded.

Herzog said $250 is a significant increase, and he expects that this would lessen the opportunity for citizens to participate. Therefore, he would like to see the fee lowered to $100.

Goss said she agreed with Herzog’s first statement, but she expressed her concern regarding the need to recover costs.

Thompson noted that the council had previously agreed that the filing fee for a referendum would be returned if the referendum was approved by the voters.

Thompson moved to amend the fee schedule as follows:

Page 2, municipal court, interpreter fees (certified): "$50.00 or as allowed by law."

Thompson moved to advance Resolution 567/Establishing Fees and Charges to final action calendar. Armanini seconded. The motion carried unanimously.

Thompson moved to amend Ordinance 795/Sewer Connection Charges as follows:

Page 2, lines 25-30: "13.12.090.11. Collection of Charges. Except for connection charges, the city…. Connection charges collected by the city shall be paid into the "sewer capital improvement fund" created by Ordinance. "

Armanini seconded. The motion carried unanimously.

Thompson moved to amend Ordinance 795 as follows:

Charge…."

Armanini moved to place Ordinance 808 on second reading and final action calendars at the November 30, 1999 council special meeting agenda. Goss seconded.

In response to Goss, Ruark said this ordinance is not subject to referendum.

Gerdes seconded. The motion carried 5-1 (Aye—MacGilvra, Gerdes, Armanini, Thompson, Herzog; Nay—Goss).

Thompson moved to adopt Resolution 568/Amending Due Date for Drainage Fund Loan Repayment. Herzog seconded.

In response to a question from Armanini, Papke discussed the proposed drainage fund loan repayment and the intent of the proposed amendment. The motion to adopt carried unanimously.

Thompson requested that we bring Ordinance 807/Adopting Year 2000 Budget back to the table for discussion. Thompson explained that the council process will establish the council’s preliminary budget, which will be made available for public comment. He also noted that the property tax levy ordinance must be adopted at this meeting.

Thompson moved that the proposed budget for the middle school program be reduced by $3,000. Armanini seconded.

Thompson said that the Human Services Commission recommended this reduction. The motion carried unanimously.

Thompson moved to increase the budget for the Shoreline-Lake Forest Park Arts Council by $3,000. Armanini seconded.

MacGilvra moved to amend the motion to increase it by $11,000. Thompson seconded.

MacGilvra said that the $11,000 could come from the contingency fund and that the benefit to citizens must be considered. He noted that this amendment would establish the proposed budget at the 1999 funding level.

Herzog said he came here tonight prepared to vote in favor of the full 6 percent increase on the property tax. He expressed concern regarding how low the city’s reserves are, and said his support for the property tax increase is intended to address that issue. He said his intent is not to raise taxes to allow for more spending.

Armanini said she agreed with both Cmbrs. MacGilvra and Herzog on this issue. She agrees with increasing the funding for the Arts Council, but she disagreed with where the revenue would come from to fund this line. She said she does not support the additional $11,000 coming from the council contingency fund but believes there are other places to get this additional funding.

Goss said she agreed that the Arts Council should be funded and noted that this represents a small percentage of the general fund budget.

The motion to amend the Shoreline/Lake Forest Park Arts Council budget by an increase of $11,000 carried 4-2 (Aye—MacGilvra, Armanini, Thompson, Goss; Nay—Gerdes, Herzog).

Goss moved to amend the proposed budget and to reduce the law enforcement budget by $1,909,086 by contracting with King County for police services including dispatch services. The motion died for lack of a second.

Gerdes said any proposals to the police department would need a lot of study. A further study is needed in light of the budget. She said it is not something council needs to deal with at this time.

Goss moved to reduce film and supplies by $600.00 and the property unit small tools by $300.00. Thompson seconded.

Armanini moved to divide the question. MacGilvra seconded. The motion to divide the question carried unanimously.

Goss moved to increase budget for the planning department engineering services by $6,500 and the building department professional services by $6,500.00. MacGilvra seconded.

Goss said that she is proposing these items due to the comments received by citizens on the amount of time it takes to process permits and applications.

Armanini indicated that she did not see any evidence that additional dollars for these departments would address this problem, and she is not convinced that this is true.

The motion did not pass 1-5 (Aye—Goss; Nay—MacGilvra, Gerdes, Armanini, Thompson, Herzog).

Discussion followed on the various items involving the police department budget. Armanini recommended that the budget include funding for recruiting expenses for the new police chief.

In response to a question from Gerdes, Chief Rogers discussed issues related to supervision and development and training for officers.

Gerdes moved to reinstate the three corporal positions in the proposed budget for the police department. MacGilvra seconded.

Herzog moved to table the motion to the November 30 meeting. Goss seconded. The motion to table carried unanimously.

MacGilvra moved to not reduce the property tax by $60,000 as established by the budget committee amendment. Herzog seconded.

MacGilvra discussed the business and occupation tax and the potential for cuts in other areas.

Thompson moved that the cable franchise fee revenue be increased by $11,000 as suggested by staff.

MacGilvra moved to adopt Ordinance 806/Year 2000 Property Tax Levy. Gerdes seconded.

A five-minute recess was called for at 11:55 p.m.

The meeting was resumed at 12:10 a.m.

Herzog moved to reduce the line item from the Council Budget Committee Recommended Budget regarding Public Safety Commission for emergency preparedness, conferences, teen court by $2,000. Goss seconded.

Herzog said he is concerned with non-critical expenditures and adding new programs in the proposed budget.

In response to a question from several councilmembers, Thompson clarified the breakdown of the $2,000 as follows: Emergency Preparedness = $500; Conferences = $1000; Teen Court = $500 for a total of $2,000.

Goss moved to divide the question. MacGilvra seconded. The motion to divide the question carried unanimously.

Gerdes said she is trying to separate the needs from the wants.

Herzog said he is having a tough time supporting many of these recommendations without seeing a specific plan to justify adding these items to the budget.

The motion to reduce the budget by $500 for emergency preparedness did not pass 3-3 (Aye—Armanini, Thompson, Herzog; Nay--MacGilvra Gerdes, Goss)..

Herzog moved to reduce the teen center budget from $15,000 to $13,000 as requested by the Human Services Commission. Armanini seconded.

Herzog said that the request that came tonight was for $13,000 for the teen center, the additional $2,000 was for a proposed teen activity program.

The motion to amend carried unanimously.

Thompson moved that the property tax revenue line item be increased by the amount necessary to establish the budget for property tax revenue at $2,239,902. MacGilvra seconded.

Gerdes discussed her concerns regarding this motion and asked that thought be given to the police services budget.

Goss said she will vote against this amendment and noted the proposal she brought to the council.

Thompson moved to increase the council contingency fund by $60,000. MacGilvra seconded.

Armanini said she will speak against this amendment and stated that these adjustments were not critical and did not have to be done tonight.

Thompson moved that the amendments approved by the council be inserted into the budget document and that the document be published as the council’s preliminary budget. Armanini seconded. The motion carried unanimously.

MacGilvra moved to adopt Resolution 569/Declaring Substantial Need to Increase Regular Property Tax Limit Factor. Thompson seconded.

Council agreed to allow a report from Cmbr. Gerdes on transportation at this time.

Gerdes reported on her attendance at the Seashore Transportation Committee meeting. She noted that Metro bus route No. 314 will be cut and asked the mayor write a letter to King County requesting that transportation alternatives be provided.

Armanini moved to amend Resolution 569 and to add a new Section 1 as follows:

Line 21: "That the City’s revenues for the Year 2000 have been substantially reduced by Initiative I-695 and the impacts in Year 2001 will be even greater; and"

Herzog moved to amend Resolution 569 and to add a new Section 2 as follows:

Line 25: "Section 2. That the City’s proposed Year 2000 budget reflects the loss at an estimated $1.1 million primarily in State Sales Tax Equalization funds."

Armanini seconded. The motion to amend carried unanimously.

Armanini moved to amend Resolution 569 to delete the original Sections 1 and 2 as follows:

Lines 21-27: "Section 1. That the City’s proposed 2000 budget calls for implementing the first phase of the 1999 Compensation and Benefits Study, with the second and final phase following in 2001; and.

Section 2. That funding the first phase of the 1999 Compensation and Benefits Study along with other programs and operations of the City, creates a substantial need to increase the regular property tax limit factor above the rate of inflation; and…."

Thompson moved to adopt Resolution 567/Establishing Fees and Charges. MacGilvra seconded. The motion carried unanimously.

Thompson moved to adopt Ordinance 795/Sanitary Sewer Connection Charges. Gerdes seconded.

Thompson said this ordinance is important particularly regarding sewer connection fees.

The motion to adopt Ordinance 795 carried unanimously.

MacGilvra moved to adopt Ordinance 806/Year 2000 Property Tax Levy. Thompson seconded.

Armanini said she had not planned on voting for this ordinance in its present form, but she believes that passage of this ordinance as written is necessary. Armanini noted that she was convinced to support the property tax levy after reading a memo from Finance Director Papke regarding the tax levy that demonstrated to her the need to take this action at this time.

Cmbrs. Herzog and MacGilvra both said they would like to associate themselves with Cmbr. Armanini’s remarks.

Herzog moved to amend Ordinance 806 as follows:

Line 19: "WHEREAS, the Council has determined that due to substantial need, including expenses related to implementing the first phase of the 1999 Compensation and Benefits Study for the employees of the City of Lake Forest Park including the loss of an estimated $1.1 million primarily in State Sales Tax Equalization funds, there is a need to increase the regular property tax…."

NEW BUSINESS

Thompson said if the city is contemplating making a decision on the Morris property, he would suggest that a public hearing be scheduled in the next two or three weeks. Councilmembers agreed that a public hearing should be scheduled as suggested by Thompson.

There being no objection, the meeting was adjourned at 12:52 a.m.

Susan Stine, City Clerk

David R. Hutchinson, Mayor