Summary of Shoreline City Council Special Meeting June 16, 2008

Council Members Present: Mayor Cindy Ryu, Deputy Mayor Terry Scott, Council Members Chris Eggen, Ron Hansen, Doris McConnell, Keith McGlashan, Janet Way Meeting called to order at 6:30 p.m.

City Manager's Report

City Manager Robert Olander announced four news items:

1) Proposals for design modifications to the Hamlin Park improvement project are to be presented June 17. Deadline for public comment is Thursday, June 26. For more information, contact Parks Planner Maureen Colaizzi, 206-546-0232.

2) A class on taxes and incorporation for small businesses will be held Friday, June 20, from 8:30 a.m. to 10:30 a.m., at the Shoreline Fire Department headquarters station, 17525 Aurora Ave. N. Cost is $25 pre-paid, $35 at the door. For more information or to register, call 206-324-4330, extension 100.

3) The Long-Range Financial Planning Committee will meet Thursday, June 19, 6:30 p.m., in the Shoreline Center Spartan Room.

4) The Shoreline Planning Commission will meet Thursday, June 19, 7 p.m., in the Shoreline Center Mount Rainier Room.

Special Presentation Students from Echo Lake Elementary School gave a slide and video presentation on their activities at Camp Orkila in May, a five-day field trip funded by a city mini-grant. The students reported learning about natural resource conservation and about avoiding food waste.

Council Member Reports

Council Member Eggen reported attending three meetings.

The Eastside Human Services Committee has three new revenue streams for homeless housing, mental health and drug dependency, and various other services. However, King County plans to reduce human services expenditure to meet a budget shortfall.

The Public Issues Committee of the Suburban Cities Association discussed new transportation funding cycles at the federal level that start in 2009.

The Municipal Solid Waste Management Committee discussed a comprehensive recycling plan, including mandatory recycling for communities that fail to meet voluntary recycling goals.

Mayor Ryu reported that the SeaShore Transportation Forum has finalized a draft letter from north King County cities to the Sound Transit board.

General Public Comments

Bob Phelps said that Shoreline Auxiliary Communications Services will hold a 24-hour emergency communications exercise in the field east of the Spartan Gym, starting 11 a.m. on Saturday, June 28. Visitors are welcome. The exercise is being held coincident with the Shoreline-Lake Forest Park Arts Festival, which runs June 28-29 at the Shoreline Center.

Bill Meyers said that the city's stated utility tax rate is not consistent with amounts reported on his utility bills. He asked the City Council to set the utility taxes so they are what they appear to be, as a matter of truth in government.

Bill Bear said he would have preferred appointment of all persons who applied to serve on the Southeast Neighborhoods Subarea Planning Citizens Advisory Committee.

In response, City Manager Olander said he would respond to Mr. Meyers' concerns in writing and in public session under a future City Manager's Report.

Consent Calendar

Council Member Way asked to remove for separate consideration Consent Calendar Item B, a motion to authorize the City Manager to award a contract for the Ronald Bog project.

The remaining item on the Consent Calendar was adoption of the Southeast Neighborhoods Subarea Planning Citizens Advisory Committee.

Council Member McGlashan moved to adopt the Consent Calendar. Seconded by Deputy Mayor Scott.

On passage of the motion to approve the Consent Calendar:

Ayes: Ryu, Scott, Eggen, Hansen, McConnell, McGlashan, Way Nays: None Absent: None

Motion passed.

Motion to Authorize the City Manager to Award a Contract for the Ronald Bog Project

Council Member Way asked for a brief explanation on why components of the project were split into two phases, replacement of a conveyance pipe and installation of three fish-passable box culverts along a channel running parallel with Corliss Place.

Public Works Director Mark Relph said the division was done to get a better price for the work from potential contractors. He said that the project would facilitate flows to the bog during low-flow situations. The project will allow for fish passage and improve habitat.

In response to a question from Mayor Ryu on why 10 bids were received, Public Works Director Relph said the bidding climate is positive, partly as a result of clear and concise project designs produced by city staff.

Deputy Mayor Scott moved to authorize the City Manager to award a contract for the Ronald Bog project, to Award Construction, Inc., in the amount of $949,628.70. Seconded by Council Member Eggen.

On passage of the motion to authorize the City Manager to award a contract for the Ronald Bog project:

Ayes: Ryu, Scott, Eggen, Hansen, McConnell, McGlashan, Way Nays: None Absent: None

Motion passed.

Discussion � 2009-2014 Capital Improvement Plan

Finance Director Deborah Tarry briefly explained differences between the Capital Improvement Plan (CIP) and the separate Transportation Improvement Plan (TIP). The CIP will be further reviewed at a public hearing on June 23. The council will continue discussions and set direction on July 7, then adopt the CIP and TIP on July 14.

The CIP must show a balance of expenses and anticipated revenues. The TIP need not show a fiscal balance. Public Works Director Relph explained that the TIP merely lists projects, but for those projects to be funded, they must be vetted by the Puget Sound Regional Council. City Manager Olander also said that transportation projects must be listed in the TIP to be eligible for grant funding.

In response to a question from Council Member Way, City Manager Olander said projects may receive multiple grants that apply to different project components.

Finance Director Tarry briefed the council on each element of the CIP.

General Capital Fund

The General Capital Fund includes 16 projects, costing $39.1 million during the six-year period. The projects include facilities, parks, open space, and trails. Construction of the Civic Center and City Hall accounts for more than half the anticipated expenditure. Construction of the complex is due to start in July.

The Real Estate Excise Tax (REET), totaling 0.5 percent and assessed on all real property transactions in the city, is one source of funding. By law, half the REET tax revenue is reserved for capital projects in the capital facilities element of the Comprehensive Plan. The other half is reserved for the Roads Capital Fund.

The council has adopted a policy to allocate $750,000 of REET revenues towards City Hall debt service. Total annual debt service for the complex will be $1 million to $1.2 million.

Building City Hall will cost $28.9 million between 2009 and 2014. A total of $8.2 million will be paid in cash, the remaining $20.7 million financed with debt.

Another project is $50,000 for a 2010 study of the swimming pool at Shoreline Park.

Parks Director Dick Deal said the pool is going on 40 years old, so the city needs detailed information on whether it will need rehabilitation or replacement.

Council Member Way asked whether a study of the nearby senior citizens center could be carried out in conjunction with the pool study.

Parks Director Deal said the city will be in a better position to assess the senior center once the Shoreline School District has finished making decisions on the future of the Shoreline Center, which is owned by the district. Public Works Director Relph said the senior center is a separate issue from the pool.

Parks projects include seven funded by the 2006 bond issue and six others. The bond projects, with a total cost of $5.4 million, include baseball and softball field improvements, Cromwell Park improvements, Hamlin Park improvements, Kruckeberg Gardens, an off-leash dog park, Richmond Beach Saltwater Park projects, and trail corridors. The six others, costing a total of $3.95 million, include Boeing Creek Park improvements, Interurban Park, parks repair and replacement, Pym property acquisition, Richmond Beach pump station, and Twin Ponds master plan.

Parks Director Deal said that a parks citizens advisory committee plans to examine soft-surface trail designs, as well as connectors between the Interurban Trail and the Burke-Gilman Trail. Hard-surface trail recommendations will be forwarded to the council at the end of this year or early in 2009.

Council Member Way asked why stabilizing eroding banks at Boeing Creek Park was pushed to the out years of the CIP. Public Works Director Relph said the decision was made for budgetary reasons.

An open space project in the CIP includes $84,000 for open space at Paramount Park.

Projects in the City Facilities-Major Maintenance Fund include $77,000 to replace doors and pave the parking lot at the police station on N 185th Street. For the Shoreline Pool, the CIP lists $250,000 to repaint and rebuild ceiling finishes, repaint the pool interior, and to replace the pool floor and boiler.

Roads Capital Fund

The Roads Capital Fund includes 14 projects that will cost $105.4 million during the CIP's six-year period. The bulk of the expenditure, exceeding $87 million, is for completing the final two phases of the Aurora Avenue improvement project from N 165th Street to N 205th Street. Funding is available to begin the N 165th Street to N 185th Street phase. Extending the improvement to N 205th Street will depend on securing additional grants.

Other projects include road surfacing, safety projects, road and intersection improvements, signals, signal control systems, and sidewalks.

Council Member Way asked about using impact fees to fund sidewalk improvements. Finance Director Tarry said that fee revenues must be used for capital projects and can only be used to mitigate the impacts of the project paying them. Usually, such revenues are used for improving roads impacted by a development. City Manager Olander said the development code already requires developers to build sidewalks on their frontage.

Council Member Way asked about pedestrian safety improvements on N 155th Street, near Paramount Park.

Public Works Director Relph said bulb-outs that improve pedestrian visibility to drivers would cost about $50,000. He said that it's important to examine the accident history of the street to determine which safety improvements make the most sense. He said adding crosswalks at uncontrolled intersections can have harmful unintended consequences, which warrants a degree of caution about planning pedestrian safety improvements.

Pedestrian/non-motorized transportation improvements, costing a total of $4.1 million, include priority sidewalk routes, sidewalk improvements, curb ramp, sidewalk, and gutter improvements, small traffic projects, and an update of the Transportation Master Plan.

System preservation projects, costing a total of $8.68 million, include road surface maintenance, replacing the Richmond Beach Saltwater Park railroad overcrossing, and rehabilitating traffic signals.

Safety and operations projects, costing a total of $2 million, include building a dual left turn lane at Aurora Avenue N and N 145th Street, finishing up the first phase of the Aurora Avenue improvement project, installing a traffic signal at NE 170th Street and NE 15th Avenue, and implementing Neighborhood Traffic Safety Program projects.

Council Member McGlashan asked how Neighborhood Traffic Safety priorities are set. Public Works Director Relph said a two-step process is used. Decisions on which projects to implement and in which order must be based on factual data.

Finance Director Tarry said long-term issues for the Roads Capital Fund include declines in fuel tax revenues as rising fuel prices drive down demand.

Washington House Bill 1858, enacted in 2007, allows cities to form transportation benefit districts to raise funds. If the city formed such a district, a $20 vehicle license fee could be levied by the council. An additional fee up to $80 could be levied with voter approval. A 0.1 percent sales tax also could be levied with voter approval.

The council deferred consideration of the Surface Water Capital Fund projects until the June 23 meeting.

Public Hearing

Bill Bear cautioned the council against allocating too much revenue to capital funds and thereby shortchanging operating funds that pay for day-to-day services. He recommended an impact fee for tree removals, which exacerbate stormwater problems.

In response, Finance Director Tarry said capital fund allocation policies are set by the City Council.

Meeting adjourned at 9:30 p.m.