CITY OF SHORELINE

SHORELINE CITY COUNCIL

SUMMARY MINUTES OF WORKSHOP MEETING

Monday, May 3, 1999

6:30 p.m.

Shoreline Conference Center

Mt. Rainier Room

PRESENT: Mayor Jepsen, Deputy Mayor Montgomery, Councilmembers Gustafson, Hansen, King, Lee and Ransom

ABSENT: None

1. CALL TO ORDER

The meeting was called to order at 6:30 p.m. by Mayor Jepsen, who presided.

2. FLAG SALUTE/ROLL CALL

Mayor Jepsen led the flag salute. Upon roll by the City Clerk, all Councilmembers were present with the exceptions of Councilmembers Hansen and Ransom, who arrived shortly thereafter.

3. CITY MANAGER’S REPORT

Robert Deis, City Manager, reported that staff provided information to the King County Library System to facilitate an estimate of the cost of constructing underground parking at the new Richmond Beach Library. He also noted that staff has submitted a permit application for grading at Shoreview Park. He said the project is on schedule for an open record public hearing before the Hearing Examiner this summer.

Councilmember Hansen arrived at 6:32 p.m. and Councilmember Ransom immediately thereafter.

Mr. Deis reminded Council that the Annexation Area A-2 election will occur by mail on May 18, 1999. He mentioned an upcoming meeting for youth service providers on May 11. He also advised that staff will present information to the Parks, Recreation and Cultural Services Advisory Committee at its next meeting on potential skate park sites.

Mr. Deis went on to review the memo prepared by Kristoff Bauer, Assistant to the City Manager, regarding the Woodway Highlands Settlement Agreement. He requested that a Councilmember testify to the Woodway Planning Commission on Wednesday, May 5 about the desirability of a second ingress and egress to the proposed development and about eastside access to the development for construction traffic. Both Deputy Mayor Montgomery and Councilmember Hansen volunteered. Mr. Deis noted that last year the developer agreed to include an asphalt path along one side of 20^th and some traffic calming devices.

Finally, Mr. Deis presented a memo from Police Chief Sue Rahr, regarding the Community Service Officer (CSO), noting the King County Sheriff’s Office has begun the recruitment process for a bi-lingual (English/Korean) officer. Mayor Jepsen mentioned a potential grant from Congressman Jay Inslee’s office, and Mr. Deis agreed to follow up on this.

Responding to Councilmember Hansen, Mr. Deis explained why the City would no longer need the services of one-third of an evidence/supply clerk once the CSO officer is hired.

Responding to Councilmember Ransom, who noted this is a Sheriff’s civil service position, Mr. Deis said this position already exists in the Sheriff’s Office as liaison to other Asian communities. The Sheriff’s Office has a more extensive recruitment process, which will benefit the City.

4. COUNCIL REPORTS

Councilmember Gustafson mentioned several items, including: 1) a meeting between the cities and Shoreline School District regarding safety issues and potential formation of a Youth Council; 2) plans for modernization for the gym and the stadium at the Shoreline Conference Center; and 3) the wide variety of Senior Center programs.

Councilmember Hansen reported on his visit to Boeing Creek Park and to Roger Day’s property. He suggested staff revisit this site, as well as the property of the neighbor to the east. He also said he attended his first meeting of the Puget Sound Regional Council Growth Management Committee and described potential committee structure changes. Finally, he announced that Shoreline Community College received a grant for the remodel of its library and appreciated the City’s support of that action.

Councilmember King reviewed several activities, particularly the peer review of the third wastewater treatment plant. She said the peer review report foresaw intensive disagreement about the Point Wells site and mentioned the cost of taking the pipe from the eastside to Puget Sound. The conclusion of the peer review was that flexibility is the most important thing, and this is found in Alternative #3. She commented that she is often asked about the Shoreline City Council’s position on a third plant. Noting that the Council has never taken a vote on this issue, she conducted a poll of Councilmembers’ views on the necessity of a third plant, apart from siting issues.

Councilmember Hansen supported a third plant. He believed that neither the Renton nor West Point facilities can contain the projected flow. Furthermore, there will be strong objections and/or legal challenges for these two sites. Councilmember Ransom agreed that long term a third plant will be needed and that it is easier to plan at an earlier stage to provide for future capacity.

Councilmember Lee referred to a study in the Seattle Times that supported a third plant. She said Puget Sound is still growing and a third plant will definitely be needed.

Councilmember Gustafson still had a question about whether a third plant is necessary before 2020.

Deputy Mayor Montgomery said that if West Point truly cannot be expanded, she would support a third plant.

Mayor Jepsen said this is a regional issue to be dealt with by King County. However, he was concerned that the legal battles of trying to expand capacity in Renton or West Point will make those options just as expensive as a third plant without a guarantee of success. He noted that some jurisdictions want a third plant, and it makes financial sense if litigation costs are included in other alternatives.

Councilmember King said the Suburban Cities Association supports a third plant, and she wished to be able to report the feelings of the Shoreline City Council. She emphasized that the first decision is whether a third plant is needed. Then the next step will be locating it. Later in the meeting, she reported that the peer review process raised the thought of moving the Urban Growth Line east, probably within the next five years. She also noted that although $300 million sounds like a large amount, the costs to individual ratepayers will be small when this amount is spread over 20 years to two or three million ratepayers.

Deputy Mayor Montgomery reported on a meeting with the Sound Transit Board to discuss regional express service and the commuter rail stop. She noted that King County Councilmember Greg Nichols supports a rail link to Northgate.

Mayor Jepsen reported on his week’s activities, including a meeting with the Fire Chief about possibilities for shared facilities.

5. PUBLIC COMMENT: None

6. WORKSHOP ITEMS

(a) 1999 First Quarter Financial Report

Joe Meneghini, Finance Director, provided an update on the City’s financial position. It included an overview of the final 1998 expenditure and revenue activity and financial information on the first quarter of 1999. He said the City ended the year with $1,076,815 more than estimated, mainly because the actual revenues were $984,829 higher than expected. Additionally, the expenditures showed a savings of about $125,994, all of which are basically one-time savings. He pointed out that gambling tax was up $604,074, primarily because of mini-casino expansions. Looking at 1999 First Quarter General Fund figures, Mr. Meneghini said the figures do not indicate any new trends. He concluded that staff does not recommend earmarking the additional funds at this time because of the volatility of the revenue sources (gambling taxes) to legislative and industry changes and the non-reoccurring nature of the expenditure savings. Additionally, it is too early to know the strength of Initiative 695 that nearly does away with the Motor Vehicle Excise Tax, which represents $2.5 million, or 15.7 percent of Shoreline’s General Fund operating revenues. He said that staff will return to Council with a recommendation for the additional resources after there is more history with the gambling revenues and it is known whether Initiative 695 will appear on the fall ballot.

Councilmembers Lee, Gustafson and King asked a series of question, which Mr. Meneghini, Senior Budget Analyst John Hawley or Mr. Deis answered.

Noting that Parker’s Casino overestimated its gross revenues, Councilmember Ransom asked if the City has made any corrections to its gambling tax revenue estimates. Mr. Meneghini said the year-end figures show the actual taxes paid by Parkers. Any adjustments would show up in the following quarter. Councilmember Ransom also mentioned the issue of grandfathering rights for Goldie’s and the order last week from the Executive Director of the State Gambling Commission placing a moratorium on licenses for mini-casinos. He felt it is appropriate to consider the accuracy of the revenue projection for mini-casinos since this is the revenue growth area.

Mayor Jepsen observed that Council is reviewing an update of the relationship between the projections in the adopted budget and what occurred in the first quarter. He said no year-end projections can be made based on first quarter figures. Mr. Meneghini added that if the higher revenue trend becomes a fact, staff will return to Council with recommendations.

Councilmember Ransom commented that the other major growth area is car sales. He asked if the projections include the new car dealership. Mr. Meneghini said that projections are not based on activity on any particular property but on the entire economic base. He reiterated that a conservative approach is always taken to budget projections. Later in the meeting, Councilmember Ransom reported on his tour of Bremerton, noting it created a 40-acre car sales lot area that was so successful it is now creating a second 40-acre car sales lot. The city is also creating two different manufacturing areas on which it is spending over $100 million on infrastructure improvements to attract businesses. He was impressed by Bremerton’s economic development efforts while it is also renovating the waterfront and expanding its park system.

Councilmember Hansen commented that all the funds look very positive and asked for a projection of when revenue growth might mean no dependence on sales tax equalization. Mr. Hawley responded that the City receives $1.5 million now, but he noted that as Shoreline’s sales tax revenue goes up, so does the revenue for other cities. Because the sales tax equalization funding is based on Statewide averages, Shoreline would need to outpace the Statewide average growth in sales tax for several years to no longer receive a sales tax equalization subsidy. The City will be receiving equalization funding at least for the foreseeable future.

Mayor Jepsen agreed that all the funds look healthy and the City’s conservative fiscal agenda is providing good fund balances to build on in the future.

(b) Council Review of Master Plan Process for Design and Administration of the CIP Neighborhood Park Improvements; the Shoreline Pool and the Richmond Highlands Community Center Projects

Mike Gillespie, City Engineer, introduced a new Public Works employee, Paul Cornish, who will manage the projects presented tonight. He then reviewed the staff report. He pointed out that for the Shoreline Pool and the Richmond Highlands Community Center, both of which are reaching the end of their reasonable life expectancies, the reviews will compare improvement options with costs for replacement. He described the public involvement process, including review by the Parks, Recreation and Cultural Services Advisory Committee, public meetings and mailings.

Continuing, Mr. Gillespie described the first of the neighborhood park projects, Paramount Park, noting that any substantive improvements at this park will take into account the possibility of placing a school at one end. He said that negotiations with the Shoreline School District are underway to set forth details for the improvements and long term use of the park. He referred to the project outline on pages 22 and 23 of the Council packet, noting construction of the improvements identified in the master plan would be scheduled in 2000.

Turning to the Shoreline Pool, Mr. Gillespie described needs at the pool, particularly for additional parking, which currently overflows into the neighborhoods. Again, Mr. Gillespie reviewed the work plan for the pool’s master plan on pages 24 and 25 of the Council packet. It is scheduled for completion in September, 1999.

Mr. Gillespie concluded with a discussion of the Richmond Highlands Community Center, which is being used as a teen center and for recreation classes. He reiterated that the major consideration is whether to renovate the facility or to replace it. The work plan for this master plan is on page 25. It is scheduled for completion later this summer.

Mayor Jepsen called for public comment.

(1) Naomi Hardy, 17256 Greenwood Pl. N., pointed out that the Recreation Center is a 1920s building that may have preservation value. She asked that this be given consideration in the evaluation.

Mayor Jepsen agreed that landmark or historical status could be investigated.

Councilmember King commented on parking needs at the pool and space needs for lockers. She also felt that no money should be spent at Paramount Park until an agreement with the School District is reached. Mr. Deis noted that the City is assisting the School District with forecasting in order to determine long-term needs. He noted an interlocal could be signed similar to the one the School District has with the County to provide that the City would be reimbursed for depreciated and unamortized costs of improvements if a school is opened there.

Councilmember King suggested looking in the community for alternatives for a second pool. She hoped to be able to utilize the community center, perhaps in a parternship with another agency, and perhaps building a new community center facility.

Councilmember Ransom concurred with Councilmember King that the City should have a real commitment from the School District about the future of Paramount Park before a substantive investment is made there. He said the plan should include restroom facilities and irrigation. Mr. Deis pointed out that irrigation increases maintenance costs.

Councilmember Ransom felt that pool usage could be enhanced by adding on to the current structure in an "H" configuration. This would increase the number of training classes that could be given. He noted that parking has been an issue for several years. At one time there was a design for about 40 stalls along the tennis courts. The only other option is on the north side of the pool in the park area. He also suggested that if other sites do not work out, perhaps the skatepark could be in a parking lot on the north side.

Turning to the recreation center, Councilmember Ransom did not wish the building to be designated an historical landmark, which might prohibit changes to the structure. He suggested that perhaps the outside could retain its historical image. He said Shoreline needs a community center, a need which cannot be met by the Richmond Highlands Center. He suggested this building be viewed as a youth center.

Councilmember Lee liked the community involvement in the master plan process. She felt the recreation center could be both a teen center and a community center, and she wanted to see this concept expanded. She suggested a meeting with the teens on this project as part of the public process. She also commented that when the City took the pool, extensive review was done and she suggested saving money by using this information. She also had a concern about the $25,000 to be spent for the Paramount Park master plan which will not be recovered from the School District if the park becomes a school site.

Mayor Jepsen commented on the School District’s funding plans for improvements to the Shoreline Center and wished to ensure that the City’s master planning for the pool is coordinated with School District proposals. He also wished to ensure that City staff go to the School Board to keep it informed, and that School District staff come to the City Council about issues of mutual concern.

Councilmember Gustafson liked the proposed public process. He noted that the Parks, Recreation and Cultural Services Advisory Committee was not part of the process for the pool planning, and he felt it should be. Staff concurred.

Councilmember Gustafson said that what is needed now is a vision of what the park system will look like in 20 years. He said many factors must be included (e.g., the role of the Shoreline Center as a community facility). He felt there are many opportunities to consider, and he recommended an in-depth discussion on the City’s part of items such as the park facilities that will be needed, cooperation with the School District, Meridian Park, the Interurban Trail, and use of the old Kellogg site. He felt there is a potential for a bond issue that would present a package of facilities improvements that might include park improvements, a new city hall, surface water improvements, roads, etc . A "grand plan" is necessary to do this.

Mayor Jepsen said this entails looking at current plans, determining future funding levels, and then considering where parks and recreation fall in terms of all City services.

Councilmember Lee concluded that part of formulating a strategic plan as suggested by Councilmember Gustafson would be to determine how best to utilize all community resources.

7. CONTINUED PUBLIC COMMENT: None

8. ADJOURNMENT

Mayor Jepsen adjourned the meeting at 8:50 p.m.

__________________________________
Sharon Mattioli, CMC
City Clerk