CITY OF SHORELINE

SHORELINE CITY COUNCIL

SUMMARY MINUTES OF SPECIAL MEETING

Monday, August 20, 2001

6:30 p.m.

Shoreline Conference Center

Mt. Rainier Room

PRESENT: Deputy Mayor Hansen, Councilmembers Grossman, Gustafson, Montgomery and Ransom

ABSENT: Mayor Jepsen and Councilmember Lee

1. CALL TO ORDER

The meeting was called to order at 6:36 p.m. by Deputy Mayor Hansen, who presided.

2. FLAG SALUTE/ROLL CALL

Upon roll call by the City Clerk, all Councilmembers were present with the exceptions of Mayor Jepsen and Councilmember Lee.

Upon motion by Councilmember Gustafson, seconded by Councilmember Grossman and unanimously carried, Mayor Jepsen and Councilmember Lee were excused.

3. REPORT OF CITY MANAGER

City Manager Steve Burkett noted that Council has a revised copy of Resolution No. 179 to consider this evening. It is based on comments from Mayor Jepsen and others. Mr. Burkett also noted a letter from the Shoreline School District inviting the City to participate in its master planning process for surplus property. Continuing, Mr. Burkett said Council has a letter from Puget Sound Energy (PSE) related to the proposed natural gas franchise. Finally, he commented on the success of "Celebrate Shoreline" and the possibility that the parade will be moved to North City next year.

Councilmember Ransom reported on his attendance at the Association of Washington Cities budget retreat last week, where he learned about performance measurements for program analysis. He distributed copies of a strategic financial planning model and of a computer program on CD that can be used to provide instant financial modeling. He said this would be valuable at budget retreats so that the ramifications of proposals made by Councilmembers could be considered on the spot. He recommended that staff learn to use the program for future retreats.

Councilmember Gustafson complimented Wendy Barry, Director, Parks, Recreation and Cultural Services, and department staff for the success of "Celebrate Shoreline." Council concurred.

4. REPORTS OF BOARDS AND COMMISSIONS: None

5. PUBLIC COMMENT

(a) Susie McDowell, 1606 NW 198^th Street, Shorewood High School swimming coach, commented on the October 24 projected opening date of the Shoreline Pool. She said swim season has begun and Shorewood and Shorecrest teams are swimming at other pools. She asked that Council do what it can to ensure that a temporary occupancy permit is issued so the pool can be used while the remodel is being completed. She said the team needs to be using the pool no later than September 17.

(b) Daniel Mann, 17920 Stone Avenue N, commended the City on behalf of the Aurora Improvement Council and the Concerned Citizens of Shoreline for moving to a full environmental impact statement on the Aurora Corridor project. He felt this step will result in a better project. He suggested this approach of "full disclosure" of all environmental impacts be taken for all projects. He said citizens must have information in a timely manner during the public process in order to provide input.

Public Works Director Bill Conner gave the background on the renovation of the Shoreline Pool. He explained how a temporary occupancy permit can be issued prior to completion. This will allow the teams to use a part of the pool while the remainder of the improvements are being done. The temporary occupancy permit should allow use of two thirds of the pool shortly after Labor Day.

6. APPROVAL OF THE AGENDA

Councilmember Montgomery moved to approve the agenda. Councilmember Ransom seconded the motion, which carried unanimously, and the agenda was approved.

7. CONSENT CALENDAR

Councilmember Montgomery moved adoption of the consent calendar. Council-member Ransom seconded the motion.

Responding to Councilmember Ransom, Mr. Burkett commented that the letter Council received from PSE indicating that PSE cannot accept the franchise with the current indemnification language should not deter Council from passage of Ordinance No. 280. This action will give PSE 60 days to decide whether to enter into the franchise, to attempt to resolve the indemnification issue or to operate in the City without a franchise.

A vote was taken on the motion to adopt the consent calendar, which carried 5 - 0, and the following items were approved:

Minutes of the Workshop Meeting of July 16, 2001
Minutes of the Dinner Meeting of July 23, 2001
Minutes of Regular Meeting of July 23, 2001

Approval of expenses and payroll as of August 3, 2001 in the amount of $2,538,168.38

Motion to authorize the expenditure of $5,000 in Mini-grant funds for the Meridian Park Neighborhood Association to purchase trees, shrubs, and herbaceous and wetland plants for Meridian Park

Motion to accept the low responsive bid and authorize the City Manager to execute a contract with RAS for the Richmond Highland Community Center project in the amount of $446,631 including the three bid alternatives and to execute change orders up to 15% of the original contract amount

Motion to authorize the City Manager to sign the Commute Trip Reduction Implementation Interlocal Agreement with the State of Washington

Motion to authorize the City Manager to execute a memorandum of agreement with Seattle City Light relating to the City’s use of its Interurban right-of-way for a public trail

Resolution No. 178 designating the City Clerk as agent for the filing of claims for damages

Ordinance No. 280 granting Puget Sound Energy, Inc. a non-exclusive franchise to operate a natural gas distribution system in the City of Shoreline

Motion to authorize the City Manager to execute an option to extend the current lease with B.A.M. for the Eastside Police Storefront

8. WORKSHOP ITEMS

(a) Shoreline Water District—City of Seattle Water Supply Contract

Mr. Burkett commented that the Shoreline Water District (District) has been reviewing options for several years with regard to water service and water supply. The District has completed negotiations with the City of Seattle regarding its water contract. He said staff is generally comfortable with the agreement, with the exception of Section II.B.3 (page 93 of the Council packet) regarding "Assumption of Transfer of Responsibilities." This condition provides that if the City, or any other provider, were to assume the District, the contract would have to be renegotiated. Mr. Burkett said the City opposes this provision.

Cynthia Driscoll, District Manager, provided background on the District’s analysis of its options and its regional activity in support of the formation of the Water Supply Association (WSA), a group of water purveyors. The contract for water supply under consideration was negotiated between Seattle and the WSA and is now available for signature by any purveyor.

Guillemette Regan, Regional Water Policy Manager for Seattle Public Utilities, summarized the contract:

• Seattle makes a 60-year commitment to provide all water needed by the District;
• Seattle’s customers will pay the same wholesale rates and surcharges as its purveyors;
• the District has the right to reduce the purchase commitment or even terminate the contract after giving Seattle written notice;
• the District has the right of first refusal to renew the contract after 60 years;
• Seattle will provide water service to the purveyors in "parity" with service provided to its own retail customers;
• an Operating Board will be created to oversee the operation of the water system—it will consist of three members from Seattle, three members from the purveyors, and a seventh chosen by the other six;
• Seattle remains responsible for water quality within the regional water supply system;
• Seattle’s one percent conservation program will be implemented by the purveyors;
• regional project costs will be shared equally;
• rates will be structured to encourage efficient use;
• costs will be allocated into cost pools: supply, transmission, new facilities, and existing facilities;
• facility charges will be based on a "growth-pays-for-growth" mechanism;
• "old water" rates will be transitioned to become equal with "new water" rates over the next 12 years; and
• Seattle, as lead agency, will confer with the Operating Board for future water supply requirements, capital facilities plans, and emergency response planning.

Ms. Regan concluded by outlining the process for dispute resolution.

Mr. Burkett clarified that the District is interested in Council comments but that the item is not before the Council for approval. He felt this contract represents an outstanding accomplishment in long-range water supply planning.

Ms. Regan said she is checking with the Seattle City Attorney regarding the provision Shoreline is concerned about, which was initially added to the contract by the City Attorney.

Ms. Driscoll said the fact that Seattle is willing to have one rate for all customers is a very significant step. She reviewed the projected rates, which show no substantial change until 2012. She noted that zoning changes made by the City will impact structures and costs for the District. However, at this point, the District has a growth rate of less than one percent per year. Ms. Driscoll concluded that the District has a good chance to become a member of the Operating Board representing the small purveyors.

Responding to Councilmember Ransom, Ms. Driscoll assured him that this contract will allow for the addition of new service areas, such as the Highlands and even larger areas such as the west side of Shoreline.

Responding again to Councilmember Ransom, Ms. Driscoll said the discussion was just initiated regarding the contract voiding provision, and the District is waiting to hear from the Seattle City Attorney. She has asked to have this provision removed.

Councilmember Ransom had concerns about how conservation is applied to consumption per household. Ms. Regan explained how conservation rates are assessed. The one percent rate is assessed per capita but based on a regional total, not individual houses. She said most utilities have a block rate that increases rates for higher consumption. She explained that in most cases this does not affect families.

Responding to another question from Councilmember Ransom, Ms. Driscoll said the members of the Operating Board not from Seattle are selected from among the purveyors of small, medium and large utilities. Seattle does not care whether the individual will be an elected official or staff member.

Councilmember Ransom commented on the newly-adopted North City Subarea Plan, which includes substantial growth. It is hoped some of this may occur prior to 2012. Ms. Driscoll reiterated that growth will pay for growth and impact developers but not current ratepayers.

Responding to Councilmember Gustafson, Ms. Driscoll said the use of water from Lake Washington is still under consideration by the region. Water reuse is a potential source of supply, but how far this is developed is between King County and the region.

Councilmember Gustafson supported the formation of an Operating Board but had a concern about Seattle having the full authority to impose emergency surcharges. Ms. Regan responded that Seattle has the ultimate responsibility to provide and pay for the service. Since this is not delegated, the decision-making authority must remain with Seattle. Councilmember Gustafson expected that the Operating Board will have the ability to provide input.

Deputy Mayor Hansen said the surcharge provision seems fair, since it will be applied regionwide.

Councilmember Grossman thanked Ms. Driscoll and Ms. Regan for their report and for making the Council feel a part of the process. He reiterated that the assumption clause should protect Seattle but not prohibit assumption of the contract by a larger, financially stable organization, such as the City.

Deputy Mayor Hansen commended the Water District Commissioners for a good contract and the hard work done on this over the years.

Mr. Burkett said he would follow up and officially convey the approval of the overall contract and the desire to resolve the outstanding issue.

(b) Discussion regarding the joint operation of the Spartan Gym by the City of Shoreline and Shoreline School District

Ms. Barry described the Shoreline School District (SSD) renovation of the Spartan Gym, noting it is retaining exclusive use of about 7,200 square feet. Approximately 4,000 square feet remains to be developed by the City. She reported that the joint operations plan has already been endorsed by the School Board.

Ms. Barry outlined the key points of the plan:

• SSD provides the land, building and the newly-renovated facility;
• the City operates, supervises and schedules recreation programs and collects and retains fees;
• costs and usage will be reviewed on an annual basis;
• generally, SSD will have priority for use during school hours and the City at other times;
• the City commits to supervision of 68 percent of the facility initially and to completion of a $650,000 renovation that will add multi-purpose rooms and other support facilities;
• once these improvements are completed, the City will provide supervision of 80 percent of the building;
• the City will pay for all utilities; and
• SSD will pay for routine maintenance and custodial services, with major maintenance costs being shared.

Ms. Barry reviewed the fiscal impacts and the implementing steps to be brought back to Council: 1) an addendum to the Joint Use Agreement; 2) an amendment to the City’s fee ordinance to include Spartan Gym rental/drop-in fees; and 3) an agreement for project management for design and construction of the multi-purpose rooms.

Deputy Mayor Hansen called for public comment.

(1) Paul Lesch, SSD Athletic Director, commented that the Shoreline Conference Center is meant to be a community gathering place. This joint use plan moves in this direction. He commended the City staff for the outstanding job it did in putting the proposal together.

(2) Ros Bird, speaking on behalf of the Shoreline/Lake Forest Park Arts Council, asked that part of the multi-purpose space be devoted to visual arts. She asserted the need for such a space and noted that the City offers some classes that could use such a space.

(3) Richard Johnsen, 16730 Meridian Avenue N, praised the remodel and asked about the use of the gym floor by folk dancing groups.

Ms. Barry said the planning for the undeveloped space will be worked through with all stakeholders and policies and procedures for all users and spaces will be developed.

Councilmember Montgomery supported the proposal. She asked about repair of vandalism and the provision for City payment for utilities. Ms. Barry explained that the City will supervise the building most of the time, which is why it will take responsibility for repair of vandalism. When identifiable, damages will be assessed to the rental group responsible for the damage. She reiterated that costs and uses will be reviewed annually to assure the agreement continues to give each party "a fair shake."

Councilmember Ransom was also pleased by the agreement, which culminates many years of effort. Noting the remaining remodeling is basically to the interior of the building, he felt the projection of $160/square foot is high. Ms. Barry said the proposed improvements include a kitchen, locker rooms and perhaps traffic revisions, increased parking and other exterior improvements. Therefore, the calculation will involve more than the 4,000 square feet.

Councilmember Ransom supported visual arts space and perhaps a place for music. Ms. Barry explained that the rooms created in the 4,000 square feet will probably be the size of average classrooms.

Councilmember Grossman was glad to see the City and the School District working together. His concern was that the City’s recreation programs are focused on parks and outdoor activities. He did not want to see operation of the Spartan Gym distract from this focus. He was surprised at the extra operating costs and felt the Spartan Gym should be self-supporting. He also wished to ensure that Lake Forest Park residents pay the same fees as Shoreline residents, since they are part of the SSD and paid their share of the bond issue that funded the remodel.

Ms. Barry said the City’s policy has been to have one fee for residents and non-residents. The proposed rental fees are based on SSD policies. Private groups pay more than City or SSD groups. Councilmember Grossman felt this is appropriate. He asserted that the language in the packet does not reflect this.

Councilmember Gustafson said this joint operating agreement reflects the vision of many people since 1986 who worked to make the Shoreline Conference Center a community facility. He said the operating plan is a working document, and he has items he would like to see added or changed. However, he was proud to be working with the SSD to develop outstanding facilities for the community.

Councilmember Gustafson recommended that the City join SSD in upgrading the equipment in the weight room. He hoped Council would discuss this at the retreat. He also wanted to see the involvement of the Parks, Recreation and Cultural Services Committee in the development and use of the Spartan Gym.

Deputy Mayor Hansen expressed Council consensus to move forward.

9. ACTION ITEMS: OTHER ORDINANCES, RESOLUTIONS AND MOTIONS

(a) Ordinance No. 283 amending Ordinance No. 224 contract Zone 1999-01 (Shoreline Village Townhomes)

Rachael Markle, Senior Planner, reviewed the background on the contract zone for the Shoreline Village Townhomes at the west side of 15^th Avenue NE and NE 166^th Street. The amendment, which is being considered under the new Development Code, replaces 32 parking spaces with 16 two-car garages and replaces eight duplexes with four buildings containing a total of sixteen units. The changes in the site plan open up approximately 4,000 square feet of additional open space. Ms. Markle reviewed the conditions in the contract zone that are deleted, added or amended and gave the reasons for doing so. She concluded that the Planning Commission conducted a public hearing on the proposal, at which only the property owner and his agent testified. The Planning Commission unanimously recommends the amended contract zone.

Councilmember Gustafson moved to pass Ordinance No. 283. Councilmember Grossman seconded the motion.

Councilmember Grossman supported the changes and expressed some concern that the original proposal was approved in January 2000 and that the project is still not completed.

Councilmember Ransom wished to ensure that the Planning Commission reviewed all the information presented to Council. Ms. Markle said the only change to the Council material was that the project was vested under the 1995 Storm Water Design Manual rather than the 1998 version.

A vote was taken on the motion, which carried 5 – 0, and Ordinance No. 283, amending contract zone 1999-01 for Shoreline Village Townhomes, was approved.

(b) Resolution No. 179 opposing the inclusion of Pt. Wells on King County’s list of final candidates for the Brightwater Wastewater Treatment Plant

Mr. Burkett explained that the resolution before Council follows up on the July 16 workshop discussion of the possible listing of Pt. Wells as a final candidate site for the Brightwater Wastewater Treatment Plant. He noted that he and Mayor Jepsen had met with King County Executive Ron Sims on this issue. Executive Sims recommended that the Shoreline City Council formalize its position in a resolution.

Kristoff Bauer, Assistant to the City Manager, briefly reviewed the elements of the revised resolution, noting it emphasizes why the site does not meet the siting criteria and is not a good choice from a regional perspective, as well as what the impacts would be to the City of Shoreline. It also highlights the other regional facilities that Shoreline already hosts. He concluded that staff has written a transmittal letter for Resolution No. 179, which all Councilmembers will be asked to sign.

Deputy Mayor Hansen called for public comment.

(1) Koreen Balluff, 20121 24^th Avenue NW, wished to add other points to the resolution: 1) soil contamination at the site might increase costs; 2) the need for an easement across the Burlington Northern tracks might complicate siting and increase costs; and 3) it is questionable that the site can meet the threshold requirement under the Shoreline Management Act that it be a water dependent use. She asked why the County would wish to use shoreline for a wastewater treatment facility. She also asked for further information on "dewatering". Finally, she noted that there was some discussion of "hiring a professional" to lobby for the City in this matter. She wondered if this should be included in the resolution.

Councilmember Montgomery moved to adopt Resolution No. 179 (as presented in revised form this evening). Councilmember Ransom seconded the motion.

Councilmembers Grossman and Montgomery asked about the addition of the points raised by the speaker. Deputy Mayor Hansen responded that Ms. Balluff raised good points via e-mail as well, but the City is out of time in terms of finalizing the resolution.

Mr. Bauer added that the resolution is not meant to be exhaustive. He agreed Ms. Balluff brought up other points that can be included in the discussion.

Councilmember Gustafson wished to ensure that these additional points, particularly the question regarding the Shoreline Management Act, be brought up in the future.

A vote was taken on the motion, which carried 5 – 0, and Resolution No. 179, opposing the inclusion of Pt. Wells on King County’s list of final candidates for the Brightwater Wastewater Treatment Plant, was adopted.

10. CONTINUED PUBLIC COMMENT

(a) Kelly Swenson, 2308 N 149^th Street, spoke in support of the Aurora Corridor improvements.

(b) Dale Wright, 18546 Burke Avenue N, represented "Citizens for a Safer Aurora," a group that supports the Aurora Corridor concept because it will improve all of the following: 1) pedestrian safety; 2) traffic safety and capacity; 3) the business environment; 4) transit flow and usage; 5) drainage systems; and 6) aesthetics. He said it was difficult to achieve these goals through a design that also satisfies the Washington State Department of Transportation and the Federal Highway Administration. He emphasized that the design was arrived at through an open public process and it represents a consensus of what the citizens of Shoreline want the Aurora Corridor to be. He opposed changes to the design because then many of the goals and objectives of the project would not be achieved.

(c) Richard Johnsen, 16730 Meridian Avenue N, commented that the room in the Spartan Gym designated for dancing is too small for some folk dance groups. He gave an example of a contra dance group looking for a new floor that would need a larger space. Noting dancing is a healthy and athletic activity, he hoped this space need will be taken into consideration in future planning.

11. ADJOURNMENT

At 9:15 p.m., Deputy Mayor Hansen declared the meeting adjourned.

________________________
Sharon Mattioli, CMC
City Clerk