CITY OF SHORELINE
SHORELINE CITY COUNCIL
Monday, July 27, 2015 City Hall Lobby - Shoreline City Hall
5:15 p.m. 17500 Midvale Avenue North
PRESENT:
Mayor Winstead, Deputy Mayor Eggen, Councilmembers
McGlashan, Hall, McConnell, Salomon, and Roberts (Councilmember Roberts joined
the tour at 5:45 p.m.)
ABSENT: None
STAFF: Debbie Tarry, City Manager; John Norris, Assistant City Manager; Peter Hahn, Interim Public Works Director; Tricia Juhnke, City Engineer; Bob Earl, Engineering Manager; Eric Friedli, Parks, Recreation, and Cultural Services Director; Maureen Colaizzi, Parks Planner; Sara Lane, Administrative Services Director; Jessica Simulcik Smith, City Clerk
GUESTS: None
At 5:18 p.m., the meeting was called to order by Mayor Winstead. All Councilmembers and staff loaded onto a bus and toured completed and future capital projects and road maintenance projects in the City. These projects included:
·
2014
Pavement Repairs Project (Dayton/Carlyle Hall/175th Overlays)
Mr. Hahn pointed out recent overlay projects as the bus drove past them. He
noted overlay’s life span is around 15 years.
·
12th
Avenue NW (Syre School) Construction -- 2014 Curb Ramp/Sidewalk Replacement
Program
Ms. Juhnke, City Engineer, noted that the City received a lot of neighborhood
complaints regarding the condition of the sidewalk on 12th Avenue.
Due to the sidewalk’s proximity to a school, it was eligible for repair and
replacement.
·
Einstein
Safe Route to Schools
Mr.
Hahn shared that several large trees were recently removed from the
right-of-way on N 195th Street in order to put in a sidewalk, and the City worked closely with the affected home
owners. This project will connect the sidewalk’s missing links and create
Americans with Disabilities Act (ADA) connections all the way into the school.
Ms. Juhnke noted the City is closely monitoring the contractor to make sure the
project is completed by the beginning of the school year.
·
Hillwood
Park
Mr.
Friedli announced the Hillwood Park parking lot was repaved last month as part
of the parks repair and replacement program. He pointed out a newly installed
neighborhood kiosk made possible by a Department of Ecology grant and noted the
neighborhood group is responsible for monitoring it. Mr. Friedli and Ms.
Colaizzi pointed out a restoration project in the park where 500 plants were
installed by a neighborhood activist.
At 5:40 p.m. the tour bus stopped at Hillwood Park, Councilmember Roberts
joined the meeting, and everyone had dinner in the park. At 6:00 p.m., everyone
loaded back into the bus and the tour resumed.
·
Aurora
Avenue N/N 200th Street
Mr.
Hahn provided Council with a construction update. He pointed to the middle of the
road where the contractor was excavating the road and explained the process. It
was asked when traffic would be routed to the other side of the road.
·
2016
Construction -- Meridian Overlay - N 190th to N 205th Street
Mr.
Hahn noted the City received grant funding to overlay Meridian from 190th
to 205th. All the curb ramps will be upgraded to meet ADA
requirements. The sidewalk will not be part of this project.
·
195th
Street Separated Trail
Mr.
Earl, Engineering Manager, noted the narrowed street, porous sidewalk, and
amenity strip.
·
McAleer
Creek Bank Restoration – (aka Goheen Revetment Repair)
Councilmembers
asked who funded this project. Ms. Juhnke responded that the project was
determined to be the City’s responsibility and it was funded by the Surface
Water Utility.
·
Northcrest
Park
Ms. Colaizzi explained the City worked with the Police Department to do a crime prevention through environmental design (CPTED)
review of the park. The park’s line of sight was improved by removing
blackberries and trimming trees. She noted the play equipment was also upgraded
and that the chain link fence will eventually be replaced with bollards to make
the park more inviting. Councilmembers asked if herbicide is used to keep the
blackberries from coming back. Mr. Friedli responded that the City selectively
uses herbicide.
·
2016
Construction -- 15th Avenue NE Overlay - NE 148th to NE 155th Street
This project will overlay and restripe approximately 1.25 lane miles of 15th
Avenue NE.
·
Twin
Ponds Park
Mr. Friedli pointed to the community garden at Twin Ponds. There are 40 plots
with a wait list of 15 people. He said the soccer field turf and lights will be
replaced and there is a grant proposal for a vegetation management plan.
·
Curb
Ramp, Gutter & Sidewalk Program (N 155th Street Sidewalk Repair)
The City did not receive grant funding for this project.
The bus arrived back at City Hall at 6:45 p.m. and the meeting adjourned.
/S/ Jessica Simulcik Smith, City Clerk
CITY
OF SHORELINE
SHORELINE CITY COUNCIL
Monday, July 27, 2015 Council
Chambers - Shoreline City Hall
7:00 p.m. 17500
Midvale Avenue North
PRESENT: Mayor Winstead,
Deputy Mayor Eggen, Councilmembers McGlashan, Hall, McConnell, Salomon, and
Roberts
ABSENT: None
1. CALL TO ORDER
At 7:00 p.m., the meeting was
called to order by Mayor Winstead, who presided.
2. FLAG SALUTE/ROLL CALL
Mayor Winstead led the flag
salute. Upon roll call by the City Clerk, all Councilmembers were present.
(a)
Proclamation of National Night Out Against
Crime
Mayor
Winstead read a proclamation declaring August 4, 2015 as National Night Out (NNO) in the City of Shoreline. Sargent Don Ellis,
Shoreline Police, and Jeanne Monger, Echo Lake Neighborhood Association, accepted
the proclamation. Ms. Monger thanked the City for participating in NNO and
encouraged residents’ participation and to use it as an opportunity to discuss
crime prevention and emergency planning. Mayor Winstead acknowledged Ms. Monger
18 years of service as neighborhood watch block captain.
REPORT OF CITY MANAGER
Debby Tarry, City Manager,
provided reports and updates on various City meetings, projects and events.
4. COUNCIL REPORTS
Mayor Winstead reported that
Councilmembers toured Capital Improvement Projects and stated she was pleased
to observe Shoreline citizens’ tax dollars performing great work throughout the
City.
5. PUBLIC COMMENT
Tom McCormick, Shoreline
resident, commented on the 2015 State Legislative Outcomes and the $16 Billion Transportation
Package. He mentioned new legislation now allows the Transportation Benefit
District to increase vehicle license fees without a vote of the citizens and suggested
that there are other ways to raise money. He said tolling Richmond Beach Road would
raise more funds, place the financial burden on those who damage the road, and should
be considered before doubling the license fee. He talked about the Point Well Draft
EIS and commented on the anticipated increase in usage of the road by tanker
trucks and recommended tolling those operations as they expand. He pointed out
that there is a financial impact study regarding the annexation of Point Wells and
said the same study should be done that considers the impact of tolling.
Mike Thyng and
John Sweeney, Shoreline Elks, invited Council to the grand opening of their Lodge
on Saturday October 10, 2015. Mr. Thyng stated hours of operations are noon - 11:00
p.m. and said there will be music, dancing, and food.
Tom Jaimeson, Shoreline
resident, commented on the issuance of a revenue bond to fund the Surface Water
Management (SWM) Utility. He expressed concern over the authorization to
combine sewer, garbage, and SWM utilities, and Ronald Wastewater financially carrying
the City. He talked about the $3.5 million general obligation bond issued in
2013 to fund an Operation Maintenance Facility in anticipation of the purchase of
Seattle Public Utilities. He commented that SWM rate payers are repaying the
bond and loaning money to other tenants of the Facility. He commented that
Ronald Wastewater has no debt and recalled previous Council discussions about
combining sewer, garbage and stormwater utilities, and using Ronald Wastewater funds
as collateral. He talked about Council’s recommendation to write off casino
debt, questioned their judgment on that matter and on a combined utility system.
Debbie Tarry, City Manager,
thanked Elks Lodgemembers for attending the meeting and said she will schedule
their grand opening on the City’s calendar. She explained that the Bond Counsel
and Financial Advisor will address public comment regarding the language in the
Bond Ordinance and commented that a combined utility will allow the City to
acquire lower interest rates. She clarified that at no time will funds from one
utility be used to pay for another. She added that the Operation Maintenance Facility
will serve surface water, sewer, streets and potentially the Parks division, and
that multiple funding sources will be used for bond repayment.
6. APPROVAL OF THE AGENDA
The agenda was approved by
unanimous consent.
7. CONSENT CALENDAR
Upon
motion by Councilmember Hall, seconded by Councilmember McGlashan and
unanimously carried, the following Consent Calendar items were approved:
(a)
Minutes of Special Minutes of June 22, 2015
(b)
Approval of expenses and payroll as of July
10, 2015 in the amount of $5,275,217.45
|
*Payroll and Benefits: |
||||||
|
Payroll Period |
Payment Date |
EFT
Numbers (EF) |
Payroll Checks (PR) |
Benefit Checks (AP) |
Amount Paid |
|
|
6/7/15-6/20/15 |
6/26/2015 |
61499-61712 |
13871-13916 |
60394-60401 |
$589,186.66 |
|
|
$589,186.66 |
||||||
|
Accounts Payable
Claims: |
||||||
|
Expense Register Dated |
Check Number (Begin) |
Check Number (End) |
Amount Paid |
|||
|
7/1/2015 |
60402 |
60409 |
$65,071.51 |
|||
|
7/1/2015 |
60410 |
60421 |
$5,889.26 |
|||
|
7/1/2015 |
60422 |
60438 |
$90,352.57 |
|||
|
7/6/2015 |
60439 |
60439 |
$2,440.00 |
|||
|
7/8/2015 |
60440 |
60447 |
$26,857.06 |
|||
|
7/8/2015 |
60448 |
60474 |
$4,322,845.72 |
|||
|
7/8/2015 |
60475 |
60506 |
$172,574.67 |
|||
|
$4,686,030.79 |
||||||
8. ACTIONS ITEMS
(a)
Motion to Authorize
the City Manager to Write Off Debt
Patti Rader,
Finance Manager, recalled previous Council discussions on the City’s Debt Policy
and explained the process to determine when debt is no longer collectible. She identified
Parkers Casino/Slam Dunk Entertainment and Echo Lake Tavern/Gloria Kalitovic as
two outstanding debts deemed uncollectible resulting from unpaid gambling
taxes, and requested Council’s authorization to write off these debts.
Councilmember
McGlashan moved to authorize the City Manager to Write of Debt in the amounts
of $149,528 owed by Slam Dunk Entertainment and $11,629 owed by Gloria
Kalitovic. The motion was seconded by Councilmember McConnell.
Councilmember
McGlashan said these debts have been problematic for some time and asked about
the status of other casinos. Ms. Rader responded that Shays Restaurant entered
into a promissory note with the City for outstanding taxes and stated that the
Gambling Commission discovered they were under reporting revenue. She said
Shays has made payments but she anticipates they will go into delinquency and advised
Councilmembers that they are being monitored. She stated that all other
operations are current.
Deputy Mayor Eggen
asked if any lessons have been learned with these operators or if anything
could have been done earlier to collect the debt. Ms. Rader responded that the
amount of debt equated to one quarterly tax payment, explained the immediate action
taken by the City Attorney’s Office to address the debt, and shared the lessons
learned. She shared the City was previously working under an incorrect assumption
that a lien could be placed on a property and explained the City now pursues a promissory
note. Ms. Tarry concurred with Ms. Rader and added that it is a challenge to
collect debt when you do not have collateral to attach the debt to.
The motion passed unanimously.
9. STUDY ITEMS
(a)
Discussion of Surface Water Revenue Bond Issuance
Sara Lane,
Administrative Services Director, introduced Bond Council Hugh Spitzer of
Foster Pepper, PLLC and Financial Advisor Fred Eoff, Public Financial
Management, Inc. She provided background on Council’s authorization of the use
of debt to fund surface water maintenance improvements in the 2015-2020 Surface
Water Utility Capital Improvement Plan. She updated Council on the bid for the
storm water pipe replacement request for proposals and informed them that no
bids were received for the project.
Mr. Eoff explained
that the 2015 Utility Revenue Bonds are being issued to fund the following
improvements:
·
Stormwater pipe and culvert repair
·
NE 25th flood reduction project
·
Hidden Lake Dam removal
·
Infrastructure improvements
·
Surface water planning and other capital projects described in the
CIP
Mr. Eoff reviewed
the competitive solicitation financing proposal and timeline. Mr. Spitzer
reviewed the proposed Bond Ordinance and shared that this is the City’s first
revenue bond ordinance. He explained what a revenue bond is and then reviewed
the proposed Bond Ordinance, delegation methodology, and issue parameters. He summarized
bondholder security provisions, and explained pledge net revenues, rate
covenants, additional bond tests, and debt service reserve accounts.
Mr. Spitzer
advised that combining utilities for bonding purposes has been around since the
1960’s. He explained that a combined utility system enables cities to join their
water, sewer, stormwater and solid waste utilities for purposes of borrowing,
increases the rate base and security to investors, and reduces interest rates. Mr.
Eoff commented that most combined utilities are managed separately, and have control
revenues and operations costs for each individual utility. He added that
investors are looking for greater revenue diversity to offset risks and they
perceive a combined system to be a better credit. Mr. Spitzer explained the
language in the proposed Ordinance does not mandate a combined utility system
but provides an option to combine utilities in the future. He then reviewed
bond provisions and covenants.
Mr. Eoff provided
an overview of the financial plan, identified sources and use of funds to issue
$2.2 million in debt, and summarized the Utility Operations. He stated the
Utility’s net income easily covers the annual $177,520 proposed series debt.
Councilmembers
discussed combining utilities for the purpose of debt services, requested
language written in the Ordinance prohibiting utility subsidies, and
recommended referring the discussion to the Ronald Wastewater Committee of
Elected Officials. They asked if a combined utility system will attract more
investors and impact interest rates. They stated that they want to ensure the
public is aware that this Ordinance does not promote subsidizing utilities and
that revenue from one utility cannot be used to pay for the operation costs of
another. Mr. Eoff responded that the language in the proposed Ordinance notifies
investors that the City is reserving the option to create a combined utility
system in the future and clarified that Interfund loans can be used for utility
subsidies. He explained that a combined system is more likely to attract
investors and stated that it does not impact interest rates. Mr. Spitzer added
that the State would not look favorably on a long term subsidy. He advised that
the proposed Ordinance does not prevent a subsidy but stated Council could embed
policy in the Ordinance to address combined utilities, or they could address the
issue when there is a proposal to combined utilities.
Councilmembers
asked about the legality of transferring money between utilities and the
consequences of defaulting on repayments. Mr. Spitzer explained that it is a
legal requirement that a utility rate is developed to accurately reflect the cost
of servicing customers. He reiterated that the proposed Ordinance is restricted
to combining utilities for bond purposes only, and recommended crafting detailed
language regarding subsidy parameters in a combined utilities ordinance.
Margaret King,
City Attorney, clarified that the Ronald Wastewater Assumption has nothing to
do with the bond issuance and combining utilities, and that Council will have
to take separate action to combine a utility. She explained that bond issuance
for a combined system requires the allocation of a portion of the bond to the
various utilities in order to extrapolate individual utility rates to determine
each utility’s operational cost as required by the State Auditor.
Ms. Tarry confirmed
that the proposed Ordinance will come back, as drafted, for adoption on August
17, 2015.
At 8:21 p.m., Mayor
Winstead called for a 5 minute recess and at 8:26 p.m. she reconvened the
meeting.
(b)
Discussion and Update of the 2015 State Legislative Outcomes
Scott MacColl,
Intergovernmental Program Manager, announced that the 2015 Legislature passed a
$38 Billion State Budget, Marijuana Regulations, a Transportation Package, and
shared that the net result was good for cities and Shoreline. He stated that
$1.3 Billion was added for basic education but said it is likely not enough to
fully fund education as mandated by the Supreme Court. He said Initiative
I-1351 (Class Size Initiative) was suspended, and higher education tuition was
reduced by 20%. He explained the consolidation of medical and recreational
marijuana regulations and stated the collective garden system will be phased
out by July 1, 2016. He shared that the $16 Billion Transportation Package is being
funded from an increase in gas tax; authorizes the Transportation Benefit
District (TBD) to increase vehicle license fees; allows the TBD to be absorbed
into the City Council; and secures $25 million for 145th Street Corridor
Project. He stated that a portion of liquor revenue sharing is being reinstated
to cities along with a small portion of marijuana revenue. He summarized that water
sewer statues remain relatively unchanged; marijuana statues were clarified;
and that statewide human services funding remain relatively unchanged.
Councilmembers acknowledged
Mr. MacColl’s hard work and asked about the status of funding for Ronald
Commons. They commented on the Governor's action on the carbon fuel tax and
asked if it would affect funds secured for the 145th Street Corridor
Project. Mr. MacColl responded that he will find out how much funding Ronald
Commons received and report back to Council. He explained the Transportation Package
amendment would convert bike-pedestrian multi-modal projects to funding for
roads, if the Governor implements carbon fuel standards. He said the amendment
is currently being evaluated by the Governor, and that it would not affect funding
secured for the 145th Street Corridor Project.
Councilmembers asked
how the Legislature would respond if the Court rules that education is not
sufficiently funded and how long the classroom limit mandate can be suspended. Mr.
MacColl responded that he is not sure of the Court’s authority, it could
potentially result in individual legislators being fined, or the Court could possibly
take over the budget. He shared that everyone is hopeful that education will be
fully funded by 2018, and said the classroom limit mandate can be suspended for
two years.
Councilmembers
discussed merging the TBD and the Council, questioned its governance, and
shared that a merger of the two entities makes sense. Ms. King responded that
the Council, by resolution or ordinance, would agree to assume the TBD, and
take on the duties, responsibilities, and liabilities of the TBD.
Councilmembers asked
where the State found money to support a $38 billion budget. Mr. MacColl
explained the State emptied the Public Works Trust Fund, used dollars from
other programs, discontinued tax breaks, and commented that the most recent fiscal
forecasts allowed them to shape the current budget.
Deputy Mayor
Eggen pointed out that School Board Members have noted they have not noticed
their share of funds. Mr. MacColl responded that it takes a while for education
funding to be noticed and that the first flow of funds will go to underfunded
schools.
10. ADJOURNMENT
At 8:51 p.m., Mayor Winstead
declared the meeting adjourned.
/S/ Jessica Simulcik Smith, City Clerk