Councilmembers present: Alan Kiest, Carolyn Armanini, Dwight Thompson (7:19 p.m.), Mary Jane Goss (7:22 p.m.), Nate Herzog, Roger Olstad, Ed Sterner (7:46 p.m.)

Staff present: David R. Hutchinson, Mayor; Douglas Jacobson, City Administrator; Michael Ruark, City Attorney; Dennis Peterson, Police Chief; John Hawley, Finance Director; Ty Peterson, City Planner; Susan Stine, City Clerk; Evelyn Jahed, Deputy City Clerk

Others present: 15 visitors

Mayor Hutchinson opened the public hearing on the Community Development Block Grant (CDBG) 2002 Funds Allocation at 7:03 p.m.

There being no comments, the public hearing on Community Development Block Grant (CDBG) 2002 Funds Allocation was closed at 7:04 p.m.

Mayor Hutchinson opened the public hearing on Initiative 747 at 7:17 p.m.

City Administrator Doug Jacobson noted that information included in council packets shows the total dollar impact on Lake Forest Park if Initiative 747 is approved.

There were no other comments. At 7:19 p.m., Hutchinson noted that the public hearing on Initiative 747 would be continued to the October 18, 2001 council study session at 7:15 p.m.

Mayor Hutchinson called the regular meeting to order at 7:30 p.m.

Hutchinson opened the public hearing on King County Proposition 1—Medic One Levy at 7:31 p.m.

There were no comments on King County Proposition 1—Medic One Levy.

At 7:32 p.m., Hutchinson noted that the public hearing on King County Proposition 1—Medic One Levy would be continued to the October 18, 2001 council study session at 7:30 p.m.

Mayor reported on his attendance at meetings of the Association of Washington Cities, Suburban Cities Association and the Shoreline School District Board. He also noted that he had met with State Senator Darlene Fairley. He reported on the community meeting with neighbors of the interim city hall property regarding its listing for sale.

Cmbr. Armanini requested that the agenda be amended to include a report from State Senator Darlene Fairley following citizen comments.

City Administrator Doug Jacobson requested the addition of a 10-minute executive session to discuss real estate matters with Peter Folkins, New Ventures Group.

Cmbr. Thompson moved to adopt the agenda as amended. Cmbr. Olstad seconded. The motion carried unanimously.

Mamie Bolender, 16730 32^nd Place NE, reported seeing salmon on October 10 in McAleer Creek at Blue Heron Park.

Bolender voiced her concerns regarding the proposed gambling ordinance and said she believes that this is not appropriate for the City of Lake Forest Park. She stressed the need to allow for a lot of discussion prior to making a decision and said she strongly opposes the proposed changes to the city’s gambling restrictions.

Ryan Lantz, senior troop leader for Scout Troop 348, reported on the recent decline in recruitment at the Cub Scout level for the Boy Scouts organization. He noted policy changes at the elementary schools, which prohibits the distribution of information to students. He asked for support from the city in promoting scouting. Troop 348 scouts Eric Gurr, Scott Gochanour and Neal Fitch and Troop 309 scout Eric Orth discussed their experiences with scouting.

Council members expressed their appreciation of the scouts’ involvement in the community and various projects completed. Cmbr. Olstad suggested contacting the Shoreline School Board, and Cmbr. Armanini recommended advertising upcoming meetings in the community announcements section of the Lake Forest Park Enterprise. Cmbr. Thompson discussed Eagle Scout projects in the city and how such projects could be recognized.

Cmbr. Sterner arrived at the meeting at 7:46 p.m. and expressed his support for the scouts and their work.

Nigel Keiffer, 3022 NE 193^rd Street, suggested that the city pass a resolution in appreciation for the work the scouts have done for the community.

Mike Lantz, 18225 47^th Place NE, co-chair of Troop 348, reported that the scouts had initiated this presentation themselves, and he asked council members for their support.

City Administrator Jacobson noted that the Lake Forest Park Rotary Club is developing a service club sign for the city and suggested the sign as another method of advertising in the community.

Senator Darlene Fairley, 17430 Ballinger Way NE, said that her office is able to prepare letters of congratulations for Eagle Scouts if notification comes to her from the troop leader.

State Senator Darlene Fairley reported on the proposed model business and occupation tax ordinance and issues related to redistricting.

Fairley noted that her office had provided information on the potential changes and impacts of the proposed gambling regulations. She discussed her work on the Senate commission on gambling and urged council members to view the videotaped testimony before the commission.

In response to Cmbr. Kiest, Fairley noted that available information indicated that no law enforcement problems were noted in the gambling establishments or parking lots.

In response to a question from Cmbr. Herzog, Fairley said that constituent feedback focused on societal concerns and the impact on communities that were gambling destinations.

Fairley discussed the continuing impacts of Initiative 695 and noted that state funds for various projects have been put on hold. She said that her information points to the elimination of any backfill from the state to replace motor vehicle excise tax funds after this biennium.

Thompson thanked Senator Fairley for her efforts on behalf of Lake Forest Park and expressed his appreciation of her straightforward approach to the issues.

Armanini thanked Senator Fairley for her work on behalf of cities throughout Washington and expressed her appreciation for her efforts related to small cities such as Lake Forest Park.

Kiest requested that the September 13, 2001 council regular meeting minutes be pulled from the consent calendar.

Kiest moved to amend the September 13, 2001minutes as follows:

Page 6, line 45: "...King County along with a break-out for North King County can be found..."

Thompson moved to approve the consent calendar as amended as follows:

1. September 13, 2001 Council Regular Meeting Minutes
2. September 20, 2001 Council Study Session Minutes
3. September 27, 2001 Council Regular Meeting Minutes
4. October 11, 2001 Finance Committee Report covering Warrants No. 40168 through 40260 drawn from the Claims Clearing Fund in the amount of $306,466.46 and Warrants No. 21502 through 21578 drawn from the Payroll Clearing Fund in the amount of $144,873.31.

Thompson moved to advance Resolution 650/Establishing Official Name of Stream in Vicinity of Northeast 155^th Street to the second reading calendar.

Thompson moved to advance Resolution 651/Taking a Position on Initiative 747 and Resolution 652/Taking a Position on King County Proposition No. 1 Medic One Levy to the October 18, 2001 council study session agenda for second reading and final action calendars.

City Attorney Mike Ruark noted that he had drafted a substitute agreement for council review and action and noted the changes in the agreement.

Sterner moved to accept the replacement agreement prepared by the city attorney and to adopt Resolution 649/Authorizing Mayor to Sign Agreement with Mark Schnurle for Conflict Public Defense Services as amended. Goss seconded. The motion carried with six votes (Thompson out of chambers).

Armanini asked if the administration could determine if CDBG funds could be used for Americans with Disabilities Act (ADA) projects. She said that she is interested to know if funds could be used for such projects as the playground equipment at Lake Forest Park Elementary School.

Herzog moved to schedule Resolution 653/Authorize Disbursement of Community Development Block Grant (CDBG) 2002 Funds for the October 18, 2001 council study session on second and final action calendar.

Following his comments related to the work of the committee, Herzog moved to add items 6 and 7 as follows:

6. Restrict membership on the Board to elected officials.

7. Regional committee appointments limited to dues paying members.

Olstad moved to accept the recommendation of the committee and authorize it as amended as the city’s response to the Suburban Cities Association strategic planning process questionnaire.

A seven-minute recess was called for at 8:35 p.m.

The meeting was resumed at 8:46 p.m.

Cmbr. Herzog discussed his research on ways to increase revenue for the city following the loss of revenue from Initiative 695. He noted that the changes in state gambling regulations to allow recreational gambling provide an opportunity for increased revenue for the city. Herzog noted that the city is able to impose taxes on recreational gambling activities, and this constitutes a voluntary tax on all participants whether they are residents or non-residents. According to research by Finance Director Hawley, Herzog said the city could realize $300,000 - $500,000 from the proposed amendments. Herzog said he supports the proposed ordinance, which would amend the city’s gambling regulations to allow mini-casinos. Herzog noted that although this solution may not be perfect, he sees no other method to provide the revenue needed to cover the city’s potential budget shortfall.

Kiest expressed concern that the proposed ordinance was not presented in the standard format and requested that it be prepared in the proper format prior to further consideration by the council. Kiest also expressed concern regarding the potential for intimidation of city staff by gambling entities.

Sterner stated his concerns regarding the proposed ordinance which would expand gambling in the city. He noted that there is no guarantee that such gambling could be limited by zoning to one property in the city. In response to Sterner, Jacobson noted the city of Tukwila’s experience and stated that Shoreline’s city manager and attorney believe that overlay zoning can be utilized to control the location of such establishments.

Armanini said she would like additional information on the issue of creating an overlay zone to limit gambling to a particular property or area. In response to a question from Armanini, City Attorney Ruark said that the state has the power to take away restrictions in the future that the city currently may impose. Armanini said that the power of the state on this issue makes her very cautious. She noted that the city has the power to say yes or no to commercial gambling, but all other decisions are up to the state. The city has very limited authority regarding commercial gambling if it is allowed.

Armanini also questioned the impact of saturation on revenue if all communities allow commercial gambling. She expressed her opposition to the notion that commercial gambling is already in our community because it is allowed in neighboring cities. She also noted that the law enforcement information provided is not compelling.

Olstad said he concurs with the concerns raised by other council members. If citizens support the proposal to expand gambling in the city, he has not heard from them. He has, however, heard from citizens who are opposed to the proposed ordinance.

In response to a question from Olstad, Herzog noted that the Economic Development Commission as a whole accepted the proposed gambling amendments, although no formal vote was taken. He said the issue of zoning and the impact on neighboring merchants were topics of discussion at that meeting. He also noted that the commission agreed that the city needs to be able to generate more revenue. Herzog said that the commissioners also discussed social and philosophical issues, such as whether the government should protect citizens by restricting gambling or if citizens should make such decisions personally. Herzog said that council members cannot have 100 percent confidence that the state won’t change gambling regulations and limit the city’s authority; however, the budget shortfall is looming.

Economic Development Commissioner Bob Edwardsen said that Bob Simmons and Nate Herzog were invited to attend their meeting to discuss the issue of gambling. He noted that Simmons was unable to attend but sent an excellent letter listing his concerns regarding gambling based on his research. Edwardsen said that the information regarding the city’s budget shortfall was quite daunting for commissioners, and citizens should be informed of this as part of the discussion about gambling.

Armanini expressed concern that the commissioners were only presented with the option of either a budget shortfall or allowing gambling. She looks to the Economic Development Commission for creativity and vision regarding the city’s options in support of its financial health.

Thompson said that he hoped the Economic Development Commission would meet with Mr. Simmons before taking a vote on gambling. He said all commissioners should receive the information provided to the council. He reflected on joining the city through the annexation process and asked if the policy concept of gambling is consistent with the vision for our city.

Kiest said that from the sound of the comments, the council is at a very early stage of the discussion on gambling. He said that the discussion should include the city’s comprehensive plan, issues related to administration of the law and prevention of corruption, and the impacts of the revenue relationship to gambling. Kiest said that clarifying the issues would require a lot of staff work. If certain minimum standards can be met, then it can be discussed as a values issue.

Armanini expressed her concern of a single business that potentially could make a substantial contribution to the city’s budget.

Following discussion of issues related to the budget process and the council’s workload, Thompson moved to remove Ordinance 861/Amending Gambling Regulations from the second reading calendar and to schedule it for discussion at the January 17, 2002 council study session.

Armanini seconded. The motion carried unanimously.

Armanini reported on the meeting of the Shoreline School District task force regarding the use of the district’s land bank properties.

Hutchinson noted the City of Lake Forest Park was presented an award from the Washington Financial Officers Association in recognition of the city’s 2001 budget document. The mayor and council expressed their appreciation for the efforts of Finance Director John Hawley.

At 9:58 p.m., Hutchinson noted that the next item on the agenda is a 10-minute executive session to discuss real estate matters. Those not required to remain for the executive session exited the meeting at this time.

A three-minute recess was called for at 9:59 p.m.

The regular meeting was resumed at 10:03 p.m.

The regular meeting was recessed to executive session for approximately 10 minutes at 10:04 p.m. for discussion of real estate issues.

The executive session was extended for 15 minutes at 10:20 p.m.

The executive session was extended for 15 minutes at 10:35 p.m.

The regular meeting was resumed at 10:47 p.m.

Thompson moved that the proposal to sell the interim city hall property to Onnuri Church as presented, with final approval as to form by the city attorney, be approved.

There being no objection, the meeting was adjourned at 10:50 p.m.

Susan Stine, City Clerk

APPROVED:
David R. Hutchinson, Mayor