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HomeMy WebLinkAbout05-29-2007 - Agenda PacketMEDINA, WASHINGTON www.medina-wa.gov CITY COUNCIL AGENDA MEDINA CITY HALL COUNCIL CHAMBERS MAY 29, 2007 7:00 PM A. CALL TO ORDER B. ROLL CALL 7:00 pm Miles Adam, Lucius Biglow, Drew Blazey, Jim Lawrence, Katie Phelps, Bob Rudolph, and Pete Vail-Spinosa C. APPROVAL OF MEETING AGENDA D. ANNOUNCEMENTS 1. Mayor 2. Council 3. Staff E. AWARDS AND PRESENTATIONS 1. Presentation by Author Mr. S. Morey Wetherald F. AUDIENCE PARTICIPATION 1. Non -Agenda Items (3 minutes per person) G. OTHER BUSINESS 1. Undergrounding Utilities Financing Presentations from recommended financial team members Ms. Cynthia M. Weed, Bond Counsel, K$L Gates; and Mr. Allen Dashen, Financial Advisor (jointly with Ms. Susan Musselman). 2. Police Wage Decompression Staff report to council addressing wage compression among the police ranks. Recommendation: Approve draft ordinance to amend the 2007 police salary schedule to eliminate wage compression and restore supervisory pay differential. 3. Living Fences A discussion of whether living fences (hedges) should be regulated in the City for purposes of view and sunlight protection. This topic initiated by Council Member Vall- Spinosa. 4. Election Signs Discussion of MMC 17.80.040. This topic initiated by Council Member Lawrence 5. Council Agenda Calendar 501 Evergreen Point Road • Medina WA 98039 425-233-6400 ph • 425-454-8490 fx H. NEW BUSINESS I. ADJOURNMENT 10:00pm Meeting Agenda is subject to change prior to approval of the agenda during the meeting. Persons interested in a specific agenda item may wish to call the city clerk at (425) 233-6400 before 4:00 p.m. on the date of the meeting to confirm agenda items. PUBLIC PARTICIPATION The Medina City Council encourages public participation and values input from citizens. In an effort to conduct meetings in a fair, but efficient manner, the City Council will follow previously adopted procedures, which are available in the City Clerk's Office. All comments shall be addressed to the Council as a whole in a courteous and respectful manner. Citizens wishing to address the Council should complete a speaker card and submit it to the recording secretary prior to the start of the meeting. Speaker cards are on the podium prior to the start of the City Council meetings. Medina City Council Meeting Agenda May 29, 2007 Page Two ITEM F-1 To: Members of City Council and staff May 24, 2007 Subject: Vacation of a portion of Upland Road right-of-way Thank you for considering our vacation petition, and for attempting to arrive at a mutually beneficial end result at the meeting of May 14. The RCW, as amended in 1967, says a jurisdiction "may" require compensation for a vacation, and a court case as recently as 1997 held compensation to be a "permissive" requirement. We do not believe that Medina has ever required compensation for vacation of a street right-of-way, but do find clear precedents that previous vacations were made without such a requirement. At the meeting Councilman Vall-Spinosa referred to such vacations in the 1980°s. Subsequent to the meeting a former City Councilman called our attention to two specific vacations on 7' Street in the area of Upland Road. Our neighbors to the north along Upland Road and elsewhere in Medina Heights were not required by the County to make payment. The county engineer noted at the time that some properties were "overlooked". Apparently none of the vacations by Medina since incorporation has had such a requirement. We feel we are being treated unfairly and do not understand why past precedent is not being followed, so that we receive equitable treatment with all the other citizens of Medina, since we were victims of an administrative oversight. In addition, we are of the opinion that the proposed payment to the City of $163,000 for the vacation of the unusable 20' strip is not reasonable, especially since the appraisal was based only on assumptions that did not take into account its unique nature and limitations. Nor does the proposed payment make financial sense for us in addition to the increased property taxes. We understand that Medina's precedents and what may be common practice in other cities are not consistent. We believe, however, that our unusual situation and the unique nature of the strip make other comparisons inapplicable. Wishing to arrive at a mutually beneficial result, we propose that a compensation payment of no more that $15 per square foot or, alternatively, the exchange we offered as alternative (2) in our previous letter to you be considered. If these are not of interest to the City, we will reluctantly find it necessary to withdraw our petition and revert to the status quo, in which the City receives no property tax benefit. For these reasons, we respectfully request a re -consideration of your previous action. Please advise us of your decision. Thank you. Marc and Vicki Neumann Don and Susan Hansen Ev and Vesta Loyd 438 Upland Road 426 Upland Road 414 Upland Road ITEM G-1 a May 16, 2007 Honorable Miles R. Adam Mayor City of Medina 501 Evergreen Point Road Medina, WA 98039 Re: City of Medina Unlimited Tax General Obligation Bonds Dear Mr. Adam: We are pleased that our firm has been selected to provide bond counsel services for the City of Medina. This letter is intended to confirm the Firm's arrangements for providing bond counsel services to the City in connection with a proposed issue of voter -approved general obligation bonds for the undergrounding of City utilities. As bond counsel, we expect to provide the following legal services: 1. Advise the City concerning the legal requirements — under state and federal law — for structuring, issuing and selling bonds, notes or other obligations ("bonds"). 2. Draft election proceedings and coordinate delivery to the King County Department of Records and Elections. 3. Prepare the proceedings, notices and other documents necessary for the authorization, issuance and sale of the bonds. 4. Attend meetings and hearings held by the City regarding the issuance and sale of the bonds when requested by the City. 5. Advise the City with respect to federal tax issues arising in connection with the City's issuance of the bonds. 6. Advise with respect to disclosure requirements under state and federal securities laws in connection with the City's issuance of the bonds. 7. Assist the City in presenting information to bond rating organizations and providers of credit enhancement relating to legal issues affecting the issuance of the bonds. Honorable Miles R. Adam May 16, 2007 Page 2 8. Prepare the closing documents and the bonds for execution by the City and delivery to the purchasers. 9. Coordinate delivery and closing of the bonds. 10. Subject to the completion of proceedings to our satisfaction, render our legal opinion (the "Bond Opinion') regarding the validity and binding effect of the bonds, the source of payment and security for the bonds, and the excludability of interest on the bonds from gross income for federal income tax purposes. 11. Assemble, prepare and provide to the City, the purchasers, and other parties, a transcript of all proceedings and documentation in bound paper form or CD-ROM format as the City may choose. Our Bond Opinion will typically be addressed to the City and the purchasers of the bonds and will be delivered by us on the date the bonds are exchanged for their purchase price. After bonds are issued, we are happy to respond without additional charge to follow- up questions about the bond transaction and general bond matters. Our fees for bond counsel services are typically based on the principal amount of bonds, notes or other obligations actually issued. Our fees are all-inclusive; no extra charges for copying, facsimiles, etc. In accordance with our current fee structure, we would expect to charge $34,000 for our bond counsel services in connection with a bond issue of $30,000,000. For services outside the scope of bond counsel services, we would charge the hourly rate of the attorney performing the work (including out-of-pocket expenses). We would not undertake any such matter without your prior authorization and direction a clear budget for the services to be performed, and we would utilize a separate engagement letter for that matter. Unless we make other arrangements in advance, our fees are payable only upon the successful issuance and sale of the bonds, notes or other obligations. I will continue to be your principal contact with respect to the Firm's provision of bond counsel services to the City. You should contact me with any questions you may have about our work or any other aspect of our representation of the City. You can reach me at (206) 370-7801 or (206) 618-6050. Our representation of the City will be staffed by such partners, associates and other professional staff, including paraprofessionals, as may be appropriate under the circumstances. We will endeavor to keep you apprised of significant developments in the Honorable Miles R. Adam May 16, 2007 Page 3 course of our engagement, to consult with you about our work on an ongoing basis and to obtain your direction on critical issues. If at any point you wish to discuss any issues or to clarify the legal advice we have provided to you, I hope you will call upon us. If these arrangements for bond counsel services are satisfactory, please have the enclosed copy of this letter signed as indicated below and return it to us in the enclosed self. - addressed, stamped envelope. On behalf of K&L Preston Gates Ellis LLP, I thank you for the opportunity to provide bond counsel services to the City. I look forward to working with you. Very truly yours, K&L PRESTON GATES ELLIS LLP By Cynthia M. Weed CMW:cmw cc: Mark F. Weinberg James H. Lawrence HACMWWHOMEIENGAGEMENT LETTER MEDINA.DOC ITEM G-1 a SEATTLE OFFICE 206.370.7801 TEL 206.370.6201 FAX cynthia.weed@klgates.com Cynthia M. Weed AREAS OF PRACTICE Ms. Weed practices in the public law and finance areas of the firm with a focus on structured finance and leasing. Since 1978, she has worked with public universities, colleges, cities, towns, counties and special districts (ports, water, sewer, school and fire protection) in Washington, Alaska, Oregon, Montana, California and Idaho on municipal financings which include general obligation bonds, revenue bonds, special assessment district financings, tax anticipation obligations, hospital debt, short-term obligations and industrial development bonds. She has worked on a majority of the private activity bonds issued in Washington since they were authorized by statute in 1981. More recently, she works with public agencies, such as the University of Washington, in utilizing 63-20 financing for public/private partnerships. Ms. Weed has been a member of the National Association of Bond Lawyers since 1980, is currently a member of the Board of Directors and is Chairperson of the Bond Attorneys Workshop for the year 2000. She is a member of the American Bar Association's Local Government Section. She is the author of Public Authority Participation in the Development Process in the United States, a publication of the Anglo-American Real Property Institute (September, 1986). BAR MEMBERSHIPS Washington EDUCATION J.D., University of Missouri, 1978 (with distinction) B.B.A., University of Wisconsin, 1969 (with senior high honors; Phi Beta Kappa) K&L Preston Gates Ellis LLP ITEM G-1 a Having served as counsel to -public clients for nearly 90 years, K&L Preston Gates & Ellis LLP understands the demands placed upon states and municipalities — and those who work with them. We have represented hundreds of cities, towns, counties, buroughs, states, state agencies, ports, public utilities, wastewater and transit agencies, school districts, fire districts, irrigation districts, and other public entities. Bond Counsel Services K&L Gates is ranked among the nation's leaders in providing bond counsel services. In 2006, under our former firm name Preston Gates & Ellis, our attorneys served as bond counsel for the issuance of over $7.52 billion in bonds, ranking 1 1 1, nationally on The Bond Buyer list of top bond counsel firms. Thomson Financial Securities Data Company ranked the firm first in Oregon and Washington and second in Alaska and the Western Region for the dollar volume of bond issues among bond counsel firms and for the number of bond issues handled (208) in 2006. As bond counsel, we provide legal services in the issuance of general obligation bonds, utility revenue bonds, assessment bonds, industrial development bonds, short-term obligations (tax, Additional Areas of Practice • Interest Rate Swaps • Housing and Nonprofit Capital Facility Finance • School District Finance • Higher Education Finance • Public -Private Partnerships • Securities Law • Tax, Arbitrage and U.S. Treasury Regulations • Taxable Obligations • Underwriter's Counsel revenue and bond anticipation notes), lines of credit, lease financing, tax increment financing, 501(c)(3) bonds, industrial revenue bonds (and other types of private activity bonds), and refundings. We help clients identify and resolve legal, practical and political concerns that may impact the various phases of a bond issue. These may include: • Structuring bonds • Drafting election proceedings • Reviewing disclosure documents • Providing advice on compliance with state constitutional and statutory requirements • Providing advice on compliance with federal tax and securities regulations • Drafting closing documents and preparing bond transcripts Additional Public Entity Services • Public Transportation • Public Policy Practice • Energy & Utilities • Public Works • Port and Maritime • Ballot Titles • Public Disclusure/Open Meetings • Legislation • Constitutional Law • Municipal/Public Entity Litigation Our specific bond experience includes: • General Obligation Bonds • Revenue Bonds • Assessment and Local Improvement District Bonds • Certificates of Participation and Lease Financing • Innovative Debt Instruments How Can We Help YouP For information on how we can help you, please contact Cynthia Weed at (206) 370-7801 or cynthia.weed@klgates.com. K&L I GATES K&L Preston Gates Ellis LLP ITEM G-1 a K&L Preston Gates Ellis LLP — Firm Overview Kirkpatrick & Lockhart Preston Gates Ellis LLP ("K&L Gates") — the January 1, 2007 combination of Kirkpatrick & Lockhart Nicholson Graham ("K&LNG") and Preston Gates & Ellis ("PGE") — comprises approximately 1,400 lawyers who practice in offices located in Anchorage, Beijing, Berlin, Boston, Coeur d'Alene, Dallas, Harrisburg, Hong Kong, London, Los Angeles, Miami, Newark, New York, Orange County, Palo Alto, Pittsburgh, Portland, San Francisco, Seattle, Spokane, Taipei and Washington. K&L Gates represents capital markets participants and leading global corporations, growth and middle -market companies, and entrepreneurs in every major industry group as well as public sector entities, educational institutions and philanthropic organizations. Our practice is at once regional, national and international in scope, cutting edge, complex, and dynamic. You can learn more about the firm and its practice areas by visiting our website at uvvw.klnates.com. OUR GROWTH AND PRACTICE The U.S. roots of K&L Gates' institutional history are diverse: Kirkpatrick & Lockhart in Pittsburgh; Preston Gates & Ellis in Seattle; Hill Christopher & Phillips in Washington; Warner & Stackpole in Boston; Freshman Marantz Orlanski Cooper & Klein in Los Angeles; Wolin Ridley & Miller in Dallas; and numerous additions of offices as well as lateral partners and groups in various other U.S. locations. In the United Kingdom, Nicholson Graham & Jones was founded in London over a century ago and joined the K&L Gates family in January 2005. With PGE came offices in Asia, and in January 2007 we added Berlin. Our 1,400 lawyers are now located in 22 offices on three continents. K&L Gates practices law on an integrated and global basis. Our delivery of legal services is supported at both the individual office level and through five firm -wide practice areas: corporate/transactional; litigation and dispute resolution; financial services; regulatory and policy; and intellectual property. Within each of these practice areas is a number of subject matter and industry based practice groups. Our multi -office corporate and transactional practice is one of the most substantial in the profession. We have completed hundreds of M&A transactions and public and private debt and equity offerings over the last few years. We maintain a balance between company side and capital markets clients, in virtually every industry segment. We perform corporate engagements for very large multinational operating companies, ambitious middle market and emerging growth companies, and capital market participants including public and private investment organizations, investment banks, commercial lenders and other financial institutions. Our lawyers in the United States, Europe and Asia are highly experienced in cross -border M&A, securities and financing transactions. The American Lawyer's 2005 "Corporate Scorecard" ranked the firm as the leader among all firms in representation of fund clients in the mutual fund industry. We are also recognized as a leader in the consumer mortgage finance industry, private equity, hedge funds and venture capital, and ESOPs. The Firm is representing the ESOP Trustee in the Tribune going -private transaction, the largest leveraged ESOP transaction in history. Private Equity Analyst ranked K&L Gates as one of the "most active law firms" in 2006 for both private equity/venture capital transactions and fund formation (#16 of the top 65 firms for deals and #11 of the top 56 firms for funds). We have a sophisticated and growing global finance practice in areas including structured finance, securitizations, derivatives, real K&L Preston Gates Ellis Jimi Over;ieR Page 1 estate, municipal finance, mezzanine and acquisition finance. In support of our global platform and emerging growth company practice, we have a substantial alternative capital markets practice, including AIM listings, PIPEs, reverse takeovers and SPACs. Our litigation engagements — including, among other substantive areas, insurance coverage, intellectual property, real estate, white-collar criminal, construction, professional liability, environmental, toxic tort, products liability, franchise, tax, bankruptcy and insolvency, antitrust and competition, employment, benefits, government contracts, constitutional and election law, and securities — are among the largest and most attractive enjoyed by any law firm. Our litigation practice includes international arbitrations, civil and criminal trials, class actions and appellate work. We have been rated a leading practice in the representation of corporate policyholders in the insurance coverage area and as a leading litigation firm for the financial services sector, and our litigation engagements have helped to shape intellectual property law in the fast-moving technology sector. Our acclaimed e-DATG practice continues to pave the way nationally and internationally in the exploding field of e-discovery. The firm's regulatory and policy practice cuts across the many disciplines that require highly specialized knowledge and experience to address governmental regulation of the private markets. Our premier regulatory practice is in the diversified financial services area. We represent a large majority of the major financial institutions and securities firms in a variety of disciplines, and our investment management and mortgage banking practices are perennial leaders. Many of our practice leaders as well as more junior lawyers have governmental experience that enhances their ability to serve K&L Gates' clients in regulatory fields, while others have held prominent positions in regulated industries. At the same time, our public policy practice was ranked recently as the fifth largest and most influential in Washington and affords our clients the opportunity to shape regulatory and legislative initiatives affecting their businesses. - - The firm continuously evaluates the direction of its practices and allocates resources so that its capabilities reach to the forefront of emerging disciplines. In recent years the firm has recruited laterally in such disparate fields as derivatives and structured finance, hedge funds, private equity, tax, intellectual property, environmental, construction, securities enforcement, investment management, antitrust, toxic tort litigation, benefits and share schemes, real estate finance, bankruptcy, telecommunications, food and drug, public policy, and employment to address the evolving needs of our clientele. We also strive to maintain a creative, interdisciplinary approach to the practice, as evidenced by the extraordinary convergence of disciplines that permitted our K&L Gates colleague, former U.S. Attorney General Dick Thornburgh, to act as the court -appointed Examiner in the WorldCom bankruptcy proceeding — the largest bankruptcy in U.S. history — and the firm itself to act as his counsel. Our lawyers practice at the peak of our profession. They serve as leaders of various professional organizations and render public service through pro bono representations and service to their communities. Our Boston partner, Mike Greco, served as President of the American Bar Association in 2005-06, while our Seattle partner, Bill Neukom, will serve as President of the American Bar Association in 2007-08. K&L Gates lawyers participate vigorously in the intellectual debate that is so fundamental to the advanced practice of law, routinely address professional colloquia, and author leading treatises and articles in their fields. K&L Preston Gates Ellis 6irm Overview Page 2 ITEM G-1 b To April 18, 2007 Joint Proposal From: A. Dashen & Associates Susan D. Musselman Incorporated DashenMusselman, Independent Financial Advisors A Joint Proposal By: Susan D. Musselman A. DASHEN & ASSOCIATES INCO RPO RATED Post Office Box 2476 Mount Vernon, WA 98273 Tel: (360) 445-0138 Fax: (360) 445-0148 sdminc@wildblue.net April 18, 2007 City of Medina 501 Evergreen Point Rd. Medina, Washington 98039 Re: Proposal to Serve as Financial Advisor 10900 NE 8`s Street, Suite 900 Bellevue, WA 98004 Tel: (425) 452-9550 Fax: (425) 452-9552 alandashen@msn.com We are pleased to provide the enclosed proposal on behalf of A. Dashen & Associates and Susan D. Musselman, Inc. (jointly referred to as "DashenMusselman"), to provide services as financial advisor for the City of Medina. Both A. Dashen & Associates ("AD&A") and Susan D. Musselman, Inc. ("SDM Inc") were formed as independent financial advisory firms in 1996. The two firms are responding jointly because we believe our combined strengths and experience will provide the City with the most qualified financial advisory team. Together -we _have- served _more financial _advisory_ clients than- any _other firm in the State and offer broad expertise in general obligation, revenue, and assessment -backed financing. Specific qualifications that we would like to emphasize, and which are discussed in more detail within the proposal, are: The principal financial advisors each have over twenty-four years of experience in public finance, having served the financing needs of numerous local governments and state agencies in the Northwest; • Having worked as public finance investment bankers for thirteen and fourteen years prior to formation of our firms, we offer a broad perspective into the marketing and underwriting of securities, which is invaluable to our clients; As independent financial advisors, we are able to provide the City with unbiased advice and input, which is particularly important when decisions are made as to method of sale, and if using a negotiated sale, in recommending an underwriter that is best suited to serve your needs. City of Medina April 18, 2007 Page 2 of 2 • As firms that are active in the marketplace, we are constantly in contact with many underwriting firms, and are able to benefit from the perspective unique to different individuals. We are known and respected by underwriters on the West Coast and nationally, and do not rely on one source for market input and opinions. We believe that we are unique in offering the combination of experience and high quality services that result from the combination of DashenMusselman. Thank you for the opportunity to present our qualifications and experience for your consideration. We look forward to the opportunity to meet with you to further discuss our qualifications. Sincerely, Alan Dashen, President A. Dashen & Associates On behalf of DashenMusselman ITEM G-1 b PROPOSAL FOR FINANCIAL ADVISORY SERVICES TO THE CITY OF MEDINA TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY 1 INTRODUCTION 2 DESCRIPTION OF OUR FIRM AND EXPERIENCE 2 SPECIAL FIRM ATTRIBUTES 3 REFERENCES OF LOCAL GOVERNMENTS 4 DEVELOPMENT OF A FINANCING PLAN 6 BOND RATINGS 0 FINANCIAL ADVISORY SERVICES & FEES 10 Dashen Mussel man, Independent Financial Advisors I I PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 EXECUTIVE SUMMARY Proposing Firm: Joint Proposal from A. Dashen & Associates 10900 NE 8t' Street, Suite 900 Bellevue, WA 98004 Telephone: (425) 452-9550 Facsimile: (425) 452-9552 E-mail: alandashen@msn.com Susan D. Musselman Incorporated P.O. Box 2476 21387 Egret Place (98274) Mount Vernon, WA 98273 Telephone: (360) 445-0138 Facsimile: (360) 445-0148 E-mail: sdminc@wildblue.net Worldng cooperatively as DashenMusselman Staffing: Alan Dashen, President and Founder of A. Dashen & Associates 23 years experience in public finance 13 years underwriting experience in Washington Extensive financial advisory experience with utilities --Experience-includes economic -analysis and -analytical -services- Susan Musselman, President and Founder of SDM Inc 24 years experience in public finance 14 years underwriting experience in Washington Extensive financial advisory experience with complex financings Experience includes presentations to Boards and Commissions Qualifications: Broad experience with Public Finance Ability to present complex ideas to Council and staff Experience with analysis required to develop financing plans Expertise in all types of financing: GO, Revenue and Assessment Independent financial advisors — no underwriting conflicts Convenient location in Bellevue, next door to Medina DashenMusselman, Independent Financial Advisors PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 INTRODUCTION A. Dashen & Associates ("AD&A") and Susan D. Musselman, Inc. ("SDM Inc") are pleased to provide this joint proposal to the City of Medina ("Medina" or "City") for independent financial advisory services. For convenience, references to the combined firms are to "DashenMusselman." Each of the firms has been in existence since 1996, with a mission of providing independent financial advice to our clients. Alan Dashen is president and founder of our role as independent financial advisors. An independent financial advisor is one that is not affiliated with an underwriting firm, which is important in ensuring that clients are truly receiving unbiased advice which is not influenced by other business factors. Our only interest is in serving the best interest of our clients. With our team, you receive the benefit of nearly 50 years of collective experience in public finance, of which 23 years have been as independent financial advisors. AD&A and will serve as lead contact to coordinate and provide services to Medina. You can expect to receive advice tailored to Susan Musselman is president and founder Your specific financing needs, some of which of SDM Inc and will provide expertise and may be best accomplished through support throughout the financing. The two competitive sale, negotiated sale or private firms frequently work together, both placement. As financial advisors, we will formally (as with this proposal) and Fork with you to determine the process that informally, to ensure that each client is will best meet your needs, and assist you in receiving the best possible service. maximizing the services of the underwriter, Combined, we offer the most financial regardless of the method of sale. advisory experience in municipal finance in We have no conflicts of interest in the state, as further described in this recommending the method of sale, or in prap6sai—At-any-time-,-the--city c-an-choose to _ __ _ reeommending otrebr-narefinnstoserve ag- _ work with either or both of the principals. underwriter for a negotiated sale, which is One very important factor supporting our one of the benefits of hiring an independent proposal for financial advisory services is financial advisor. DESCRIPTION OF OUR FIRM AND EXPERIENCE A. Dashen & Associates A. Dashen & Associates ("AD&A") was founded in 1996 to provide financial advisory services, economic analysis and analytical services to governmental entities throughout the Northwest. Since formation of the firm, AD&A has served as financial advisor for over 150 financings totaling over $3.5 billion in par value. Additionally, the firm has prepared numerous analyses, financial plans and feasibility studies. The firm's clients include Snohomish County, Spokane County, the City of Spokane, the City of Edmonds, and many other municipal and special services districts throughout the Northwest. ALAN DASHEN was a vice president at Seattle -Northwest Securities Corporation from 1984 to 1996. While at Seattle - Northwest, he was responsible for the majority of the firm's revenue bond financings, both on negotiated sales where Dash enMusselman, Independent Financial Advisors 2 PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 Seattle -Northwest underwrote the bonds and as a financial advisor. At AD&A he has continued to provide financial advisory services to many of these same issuers throughout the region. Mr. Dashen has a degree in engineering and an MBA. He served four years as an officer in the U.S. Navy nuclear power program. Susan D. Musselman, Inc. Susan D. Musselman, Inc. ("SDM Inc") was founded in August 1996 to provide financial advisory services to governmental entities in the state of Washington. Since formation of the firm, SDM Inc. has served as financial advisor for over 150 financings, totaling nearly $2.0 billion in par value. SDM Inc serves as financial advisor to the State of Washington Lease/Purchase Program, five of the State's University's, numerous counties and several local government issuers. This includes work for the cities of Bellingham, Federal Way, Mount Vernon and Walla Walla. SusAN MussELMAN has provided financial advisory and debt underwriting services for municipalities in the Northwest since 1982. She has extensive experience developing financing plans, with a broad understanding of state and federal law as they relate to municipal financing. During the fourteen years before starting the company, Ms. Musselman was employed by investment banking firms providing financial advisory and underwriting services. Immediately prior to forming SDM Inc, Ms. Musselman was Managing Director in the Public Finance Department of Piper Jaffray, Inc. Ms. Musselman has a BA in Business Administration from the University of Washington, with concentrations in Finance and Business, Government & Society. SPECIAL FIRM ATTRIBUTES DashenMussehnan has worked jointly in support of each firm's clients for several years. The DashenMusselman team offers extensive experience in all types of debt issuance within the State, which we believe makes us well suited to explore financing options for Medina. We have experience with revenue financing, assessment -backed financing, and voted and non -voted general obligation debt. We have worked with clients on competitive and negotiated sales and for private placements. Along with our experience, an important attribute we offer is our independence, therefore our ability to tailor our advice to Medina's needs, and to a particular financing. Different financings require different approaches or different types of marketing. An underwriter who is best at marketing revenue bonds may not be the best at marketing general obligation bonds. An underwriter who is best at marketing GO bonds may not have a good outlet for assessment -backed bonds. We have a perspective on the market that lets us develop an understanding of marketing requirements for bonds of different types. Regardless of the method of sale you use, the city will benefit from the skills and experience of an independent financial advisor. By providing a joint proposal, we are confident we bring the skills and experience to serve all of your varied needs. DashenMusselman, Independent Financial Advisors 3 Qki= PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 REFERENCES OF LOCAL GOVERNMENTS AD&A has served as financial advisor to the following issuers since 2002: • Spokane County • Bethel School District • Snohomish County • Puyallup School District • City of Spokane . Mukilteo School District (') • City of Bellingham (l) Cascade Water Alliance • City of Edmonds . Port of Edmonds • City of Great Falls (MT) port of Port Townsend • City of Kennewick . port of Vancouver cif Cowlitz PUD • King County Library System • Douglas County PUD • Kennewick Public Facilities District (i) Klickitat PUD • Lynnwood Public Facilities District • Snohomish PUD • Whatcom Public Facilities District • Renton School District SDM Inc has served as financial advisor to the following issuers since 2000: • Office of the State Treasurer • Central Washington University • Washington State University • WSU Energy Plant Project (1) --__-_Wester�Washington-Univer-&ity--- • Eastern Washington University • The Evergreen State College • Cascade Water Alliance • Port of Anacortes • City of Bellingham (1) • City of Federal Way • Town of La Conner • City of Mukilteo • City of Walla Walla • King County Library System • Kittitas County • Klickitat County • Lewis County • San Juan County ___ __• _Skagit -Count----- ----------- --- - ------ • Yakima County • Mount Vernon School District • Educational Service District 105 • Lk Whatcom Water and Sewer District • E. Columbia Basin Irrigation District • Kennewick Public Facilities District (I) • Skagit Regional Public Facilities District • Walla Walla Public Facilities District • Puget Sound Neighborhood Health Center (1) These represent DashenMusselman contractual relationships. DashenMusselman, Independent Financial Advisors 4 Qki= PROPOSAL FOR FINANCIAL ADVISORY SERVICES APruL 18, 2007 References for Susan Musselman Washington State University (1996 to present) Ms. Musselman has served as financial advisor to Washington State University since 1996, shortly after formation of the firm. The first project we assisted with was a proposed 63-20 financing for student housing, which was determined to be unadvisable. Additionally, she has assisted the University with several projects not directly related to debt issuance, including planning and input for internal funding of an Indoor Practice Facility, input and assistance with a Parking System Review undertaken in 1999-2000, and review of options and planning relative to a new steam plant. City of Walla Walla (1996 to present) Ms. Musselman has served as financial advisor or underwriter to City of Walla Walla since 1992. Services to the City include assistance with numerous revenue refunding bonds that have saved millions of dollars for the City; issuance of voter -approved bonds; issuance of non -voted bonds; and issuance of assessment -backed (LID) bonds. We have assisted the City with policy issues relating to assessment districts, funding of reserve accounts, and use of investment agreements to maximum reserve fund earnings. Services include assistance with debt administration, annual rating reviews and Mr. Tim McCarty compliance with continuing disclosure Support Services Director undertakings. 15 North 3rd Ms._. Musselman has assisted the University-___.—P•O. Box 478 --—__ with planning and debt issuance for eight bond --Walla-alla�la, WA993�2_ issues totaling over $300 million. (509) 527-4540 tmmcarty@ci.walla-walla.wa.us Mr. Terry Boston Interim Senior Executive Director Administrative Service P.O. Box 641722 Pullman, WA 99164-7722 (509) 335-6782 bostont@wsu.edu Mr. Duane Cole City Manager 15 North 3rd P.O. Box 478 Walla Walla, WA 99362 (509) 527-4522 dcole@ci.walla-walla.wa.us DashenMusselman, Independent Financial Advisors PROPOSAL FOR FINANCIAL ADVISORY SERVICES APPuc 18, 2007 References for Alan Dashen City of Spokane, Washington (1996 to present) AD&A has served as financial advisor to the City of Spokane for numerous issues since 1996. Previously he worked with the city as either financial advisor or underwriter since 1984. Historically, the city has sold its general obligations bonds competitively and its revenue bonds through negotiated sale. However, following a default on some parking garage bonds issued by the Spokane Downtown Foundation in 1998 (AD&A was not associated with that issue) the city was downgraded limiting its ability to sell bonds on a competitive basis. For the last few years, Mr. Dashen has worked with the city restoring its bond ratings and credibility in the marketplace. Gavin Cooley Chief Financial Officer City of Spokane 808 W. Spokane Falls Blvd. Spokane, WA 99201-3334 (509) 625-6586 gcooley-@spoTcanecity.org - Snohomish County, Washington (1996-present) AD&A has served as financial advisor to Snohomish County since 1996. During that period, the county has issued numerous bonds for a variety of county purposes. Most of these bonds were sold through a competitive sale process. In addition, the firm has provided a variety of analytical services to the County not directly related to the issuance of debt. Mr. Roger Neumaier Snohomish County Finance Director 3000 Rockefeller Avenue - M/S #610 Everett, WA 98201 (425) 388-3862 roger.neumaier@co.snohomish.wa.us DEVELOPMENT OF A FINANCING PLAN We understand that the City plans to borrow approximately $15 million to pay a portion of the cost of installing underground utilities in the City. Based on our research, Medina does not have any long term debt outstanding nor does it have a rating from either of the two major rating agencies, Moody's and Standard & Poor's. The following outlines the steps we would recommend in developing a financing plan. Establish a financinz team. Initially, the City should retain a financial advisor and bond counsel. If helpful, we can provide names of the major bond counsel firms in the State. We believe there is a good likelihood that Medina will be best served selling bonds through a competitive bid process, which will guarantee the lowest interest rates. Because of this, the City should not initially retain a bond underwriting firm, and this decision would be made later in the process if a negotiated sale is recommended. DashenMusselman, Independent Financial Advisors 6 PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 Develop a refined cost estimate for the ro'ect. This should include a reasonable contingency, and initially exclude bond - related costs. We will assist the City in estimating and incorporating financing costs. Identify sources of funds other than publicly -issued debt. Other funding sources may include: ■ Federal or State Grants or low interest loans (the Public Works Trust Fund and CERB are two state loan programs that may be of interest) ■ Puget Sound Energy ■ Telecommunication companies (if applicable) ■ Other utility companies (if applicable) Identify, evaluate and recommend the type of bonds to be issued. There are several options that can be considered by the City. These include limited tax (non -voted) general obligation bonds, unlimited tax (voted) general obligation bonds, revenue bonds and assessment bonds. levy lid lift could be used to fund LTGO debt service. Revenue bonds are more expensive than either type of GO bonds, and require maintenance of a debt service reserve fund, and other covenants, including a promise to produce net revenue each year at a multiple higher than debt service (i.e. 1.25 times debt service). Revenue bonds are appropriate for enterprise systems, in accordance with a system and plan of improvements. It is unlikely that this option will be preferred by the City, as it is not likely to meet your goals and interests. Assessment -backed bonds are the most expensive form of debt, as they are supported by "special assessments" imposed on benefiting property owners. This type of debt is typically used when the project will benefit only a small portion of the City's residents, and requires that the improvement cause their property value to increase by at least as much as the assessment. For a project that generally benefits the entire City, Unlimited tax general obligation (UTGO) GO bonds are more applicable and cost bonds would achieve the lowest interest rate effective. and --have no impact on the ClWs general— —-- — — — — fund. The proposition for UTGO bonds Proceed throe-h the election process. For would ask voters to approve the issuance of options that require voter approval (UTGO the bonds, as well as an excess property tax bonds or levy lid lift), the City will need to levy dedicated solely to the repayment of the adopt a resolution to be filed with the bonds. Voters are generally most familiar County Auditor. Authorization for UTGO with school bonds which, by and large, are bonds requires at least 60% voter approval. voted and sold as UTGO bonds. Further the voter turnout needs to be at least 40% of those voting in the last general Limited tax general obligation (LTGO) bonds would have a slightly higher cost to the City, and would represent a full faith and credit pledge of the City, secured by the General Fund and other legally available funds. Some cities will dedicate utility taxes, real estate excise taxes, or other new or existing revenue sources to the payment of LTGO bonds, or the City may ask the voters to approve a "levy lid lift," which is a one-time step-up in the City's regular property tax rate. The new revenue from the election (called "validation"). Authorization for a one-time increase in the City's regular levy would require at least 50% voter approval, with no validation requirement. There are six possible election dates each year. The following are filing dates and election dates for the remainder to 2007 and early 2008. The filing date for the August or November elections (the primary and general elections) is 84 days prior to the election date, and for all other election dates is 52 days prior to the election. DashenMusselman, Independent Financial Advisors 7 Qkg=PROPOSAL FOR FINANCIAL ADVISORY SERVICES APRIL 18, 2007 Dates for Next Six Elections: 2007 and 2008 Filing Deadline Election Date May 29, 2007 August 21, 2007 August 14, 2007 November 6, 2007 Est. Dec 10, 2007 February 8, 2008 Est. Jan 10, 2008 March 5, 2008 Est. March 2, 2008 April 23, 2008 Est. March 23, 2008 May 14, 2008 The City will need to develop a strategy for any bond or levy lid lift election. This is typically done through a citizens committee since there are State law restraints on the ability of the City to spend public funds or use public resources promoting an election proposition. Assuming a $15 million UTGO bond issue amortized over 20 years at an average interest rate of 4.5% (which is above current market conditions) the debt service payments are estimated at $1.1 million annually. The City's 2007 assessed value for bonds is $2,458,475,622. This results in a required property tax levy of about $0.45/$1000 of assessed value. For a $1 million home, this would be a property tax increase of $450 annually. To put this in perspective, the total property tax -Tevy iri Medina -or 2006 was $7.80233/$1,000 of assessed value, so a $0.45/$1,000 increase in the tax levy rate would increase taxes by about 6%. The City can mix or match financing options, for example obtain a portion of the funding from LTGO bonds supported by a revenue source (say, real estate excise tax, utility tax, or available funds from the General Fund), and a separate UTGO bond supported by an excess tax levy. These would be two separate bond issues, but could be sold at the same time, through a common marketing and disclosure document. Determine method ofsale for the bonds. The bonds can be sold through negotiated or competitive sale. We recommend that the final decision be made later in the process, after development of the financing plan and election, if applicable. For a competitive sale, the financial advisor assists in preparing the issue for market, including structuring, disclosure, obtaining bond ratings and bond insurance, and advertises nationally to hundreds of underwriting firms which may submit a bid for the bonds on a given time and date. Many large issuers, such as the State of Washington, King County and City of Seattle, commonly use competitive sale, and many of our smaller clients use competitive sale to sell GO bonds, including San Juan, Skagit, Snohomish and Yakima counties, and the cities of Bellingham, Federal Way and Walla Walla. For a negotiated sale the City, with assistance from the financial advisor, would select an underwriting firm to market the bonds on the City's behalf. As financial advisor, we provide many of the same services as we would for a competitive sale, and would be integrally involved in the bond sale process to ensure that the results were the best possible for the City. This is typically the preferred method for unusual or complicated credits. Our recommendation on the type of sale would depend on several factors, including the type of bonds actually sold, the desire for local sales of the bonds, and market conditions. However, given Medina's the strong credit and the likelihood that GO bonds will be used, our initial indication is that the City would be best served by a competitive sale. Determine the structure the bond issue. The City has flexibility in structuring the bonds. A typical city bond issue would be sold on the basis of level annual debt service. However, often voter -approved bonds are back loaded, taking into account expected growth in the tax base, to keep lower levy rates in early years. There are some advantages and disadvantages to both structuring methods, which we would discuss with the City. DashenMusselman, Independent Financial Advisors 7 9kiko PROPOSAL FOR FINANCIAL ADVISORY SERVICES BOND RATINGS To achieve the lowest interest rates in the bond market, the City will need to obtain a bond rating from one or more of the major bond rating agencies — Standard & Poor's or Moody's Investors Service. We believe the City requires a rating from one agency only, and not both. In addition to securing a bond rating, we would apply for municipal bond insurance, and based on bids provided, perform an analysis of whether or not insurance is cost-effective and advisable. Surprisingly, due to the highly competitive fees and investor preference for bond insurance, even highly rated bonds may benefit from bond insurance. The following shows the rating categories for each of the agencies: Moody's S&P Aaa AAA Aal AA+ Aa2 AA Aa3 AA - Al A+ Baa2 BBB Baa.3 BBB - The City has very strong demographics and is one of the wealthiest in the State. In 2006, the average residential value in Medina was $1,897,800, second only to Hunts Point. At the same time the 2006 total levy rate $7.80233/$1000 of assessed value was APRIL 18, 2007 among the lowest in the State. As a result, we believe the City should receive one of the highest ratings possible. We discussed with Moody's how they would view the rating and they concurred with our perspective. DashenMusselman has extensive experience working with the bond rating agencies and know the rating analysts covering the State. Our approach is to seek a balance between getting the highest rating possible, within the constraints of the security features and considering the clients overall goals. In order to best advise Medina relative to credit ratings and strategy we would review ratings of surrounding governments and related credit reports, as well as financial information on Medina. This information will be considered relative to other ratings in the State and medians published by the rating agencies to determine the expected bond rating. Together with the City, we will determine a strategy for obtaining the best possible rating for Medina. We will highlight the positive points that we think wilt -lead tiie rating agencies tote best ratings. As a first-time issuer, Medina may benefit from in -person presentations to the rating agencies. This could include a site visit locally, or travel to San Francisco; that detail will be determined as we get closer to a financing and will depend in part on the preference of the rating analysts. DashenMusselman, Independent Financial Advisors 9 �Rf9-Oi PROPOSAL FOR FINANCIAL ADVISORY SERVICES APFuL 18, 2007 FINANCIAL ADVISORY SERVICES AND FEES Financial Advisory Services The following lists typical services provided by the firm as financial advisor. We would work with Medina to develop tasks specific to your needs. ■ Review Medina's financial resources to determine potential borrowing capacity. ■ Recommend financial structure for the proposed financing and provide Medina with information about the options and alternatives. ■ Develop and propose financing options including the costs and benefits of each. ■ Assist Medina with preparation of the cash flow projections for proposed issues addressing debt service requirements and sources of funding, and levy rate impact ■ Advise Medina on changes in financial markets that could affect financing plans. ■ Make presentations to City Council and other stakeholders as needed. ■ Review IRS requirements for relating to arbitrage, and assist in compliance with secondary market disclosure requirements. ■ Provide advice on terms and features, and on the timing and marketing of bond issues. ■ Advise on the benefits of a negotiated or competitive sale for any bond issue. analysis. Review and provide input on official ■ Suggest and evaluate financial aspects of statements prepared on behalf of Medina. long-term capital plans. (Or, prepare the official statement, for an additional fee as set forth under Financial ■ Provide advice on terms and features, and Advisory Fees, herein). __---__—on-the-timing-and_marketing-ofhond-issues.--- Arrange for distribution of official ---- — ---- ----------------------- ■ ■ Advise on the benefits of a negotiated or statement to bond underwriters and competitive sale for any bond issue. investors as appropriate for the size and ■ Assist in technical aspects of developing type of issue and sale method. financing arrangements and instruments. ■ Represent Medina's interests in the financial market, including advertising and marketing the bond issue to potential bidders at competitive sale. Coordinate bond rating and bond insurance applications; bond closings; coordination of delivery of the bonds; and all other tasks ordinarily required for suc-cessful offering, sale and closing of bonds, notes or other financing instruments. Financial Advisory Fees We are willing to consider different types of compensation arrangements for clients, such as a rate per $1,000 of borrowing, fixed fee per issue or hourly fee, based on client preference. Based on our current understanding of the City's plans and needs, we would propose a fee of $1.15/$1,000 of bond issue size, with a minimum fee of $10,000 and a maximum fee of $25,000. Additionally, we will charge an estimated $4,000 for preparation of official statements (for required disclosure and marketing), and costs of travel outside of the Puget Sound region (i.e. rating agency visit to San Francisco, if applicable). We do not charge for overhead such as telephone or travel to the City. DashenMusselman, Independent Financial Advisors 10 ITEM G-2 CITY OF MEDINA Office of the City Manager May 29, 2007 TO: MAYOR AND CITY COUNCIL FROM: CITY MANAGER SUBJECT: POLICE WAGE DECOMPRESSION RECOMMENDATION: It is recommended that the Mayor and Council approve the attached amendment to Ordinance No. 799 which modifies the 2007 Salary Schedule for the positions of Police Lieutenant and Police Chief. BACKGROUND: In most law enforcement organizations police personnel of different ranks are represented by different recognized bargaining groups. Over time, wage and benefit negotiations result in compensation packages for these groups that are unique in character and overall value. Given the multi -dimensional elements of labor contracts, provisions tied to different indices, and natural "drifts", it is not uncommon for wage compression to occur. Wage (and total compensation package value) compression occurs when a sufficient salary differential between successive levels of supervision and rank are eroded. When it occurs, wage compression results in: higher positions being under compensated for additional duties and responsibilities assumed; the elimination of customary incentives to advancement and promotion; loss of respect or esteem for higher authority, which in our culture is tied, in part, to job title and salary; and low employee morale. Different Police ranks receive compensation for factors appropriate to their assignments (i.e. shift differential, holiday pay, hazardous duty pay etc.). Police Officers may be required to work overtime to fulfill staffing needs or complete a crime scene investigation. Likewise, it is customary for agencies to provide wage retention incentives (longevity pay) to keep veteran officers and avoid the cost of hiring and training new recruits. Because these forms of compensation are often not available to police supervisors and commanders, it is important that base salary differentials between the ranks should be 10%- 15%, at a minimum. Even given these differentials, it is not unprecedented for some Officers working a large number of overtime hours to earn more gross income than their supervisors. For this reason, wage compression analyses generally focus on base salary comparisons, though they can incorporate other "fixed" forms of compensation, as well as the value of certain fringe benefits. Recent salary gains for Medina Police Officers, including the Corporal, or Sergeant, rank have created a wage compression dynamic that should be addressed at this time. Mayor and City Council Members Police Wage Decompression May 29, 2007 DISCUSSION: As in most industries, or employment sectors, government employee compensation is predicated on market forces, in combination with factors relating to position duties and responsibilities. Both external and internal comparisons are made to interagency and intraagency samples. Two fundamental benchmarks in public sector salary comparison are: size of the service population; and size of the organization. Smaller size communities that wish to hire top talent in a metropolitan market, must often make a conscious decision to offer salaries competitive with surrounding larger jurisdictions. To attract and retain the best Police Officers in the region, Medina offers its Officers one of the best compensation packages in the State. However, as a result of the most recent labor agreement (December 2006), the supervisory differential between the Lieutenant and the Sergeant has shrunk to only 2%. As the attached salary tables (G-2a) show, a one-time 10.6%, or $680 per month adjustment to the Lieutenant's top salary range from $6,410 to $7,090 would seemingly eliminate the compression; an acceptable 13% salary range differential between the Lieutenant and the Sergeant would then exist. The problem with this fix is the performance bonus (up to 10% of base salary), which the Police Officers and Sergeant have been eligible for as a matter of contract, and for which the Lieutenant has also received as a matter of practice (The 10% performance bonus for which the Chief was eligible for was incorporated into his base salary in February 2007). As a matter of practice, most Police Officers earn the full performance bonus for which they are eligible. When the performance bonus is added to the base salary in the attached tables, the supervisory differential between the Police Chief and the Lieutenant drops below the average differential between the other ranks. Approving a one-time 2.7% or $230 per month adjustment to the Police Chief's top salary range from $8,585 to $8,815 would result in an acceptable 13% supervisory salary differential. Other Alternatives Considered: There is no magic bullet to curing salary compression in the Police ranks; either one- time salary adjustments must be made, or one or more ranks must be eliminated. Cutting the Police Department's Lieutenant position is fraught with problems. There is an incumbent in the position (albeit acting) who receives exceptional performance reviews by the Police Chief, and widespread praise by a broad cross-section of the community. Exorcising the position from the Police command structure will arguably weaken supervision, remove an important promotional opportunity for aspiring Officers, and may result in one or more excellent Officers migrating to other police agencies. Finally, by contract, the City has the potential of paying nearly $20,000 annually in longevity bonuses to its Officers. These bonuses are intended to encourage employee retention, thereby minimizing the substantial expense associated with Officer turnover, such as recruitment, testing and training. Eliminating the Lieutenant position will remove a sought after career opportunity, and effectively discounts, and perhaps even erases, the value of Longevity pay. Other Compensation and Classification Issues: If the department's Lieutenant position has been underpaid of late, it is also true that, through poorly documented past practices, the position has benefited from receiving wage Page 2 of 3 Mayor and City Council Members Police Wage Decompression May 29, 2007 and benefit gains earned by the Police Officers' bargaining unit to which the classification does not belong. The Lieutenant position should now be clearly defined as an independent Police Command position, serving at the will of the Police Chief and City Manager. To further distinguish the Lieutenant position as a Command Officer, it is recommended that, as with the Police Chief, the annual performance bonus should be integrated into the salary range (thereby increasing the salary adjustment from 10.6% to 21.7%). As with the Police Chief, the City should match the Lieutenant's deferred compensation contribution up to $250 monthly (increased from the present $200). Likewise, both longevity pay and shift differential pay should be eliminated, as both forms of compensation more aptly apply to line officers. Additionally, the Police Lieutenant shall be eligible for earning overtime pay only when performing Patrol Duties. Finally, to avoid conflicting classification titles and in keeping with more contemporary law enforcement rank titling, the Police Corporal position should be changed officially to Police Sergeant. FISCAL IMPACT Approving one-time salary adjustments which increase the monthly maximum base salaries of the Lieutenant and Police Chief of $1,390 ($680 + $710 bonus conversion) and $230 respectively, plus supplemental pay and benefits adjustments, carries with it a maximum annual cost of $22,521. This figure assumes both the Lieutenant and Chief are at the top of their salary range (neither will be immediately) and applies the higher Lieutenant salary range to a projected average year of patrol overtime pay (400 hrs). Prepared by: Mark F. Weinberg Presented by: City Manager Attachments: Ordinance Page 3 of 3 m N � � W � ; Jca � � \ 2 E % %\ \ \ f % / \ a - ■ / 0 S 2 } / / k S \ E \ / n E � \ ) \ \ ± 6 k / ) \ \ 2% w « o » \ y w © q 7 \ \ 2 0 \ S � $ $ 2 3 . % k / _ § 4 ƒ ; - k § ) ± ; = co ° 2 « 2 $ % / o 2 \ \ / 0 § f « 0 2 f I 5 o CL ? § 2 G / } f % \ \ \ U) / \ 0 > 8 2 § ^ , {_ \ $ R q m 0 / / 2 ± m\ a2 a\ mc cn ■ coE \ E o a \ o = § pi § ° E ? % @ 7 c ® } ° ° / @ \ 2 m 2 { S % < E W 2& _ ; w» ] S \ * 3 a t G ~ 0 \ / k 2 . > a ° - e 7 2 a } - ± _ .. % / ) , \ q r k # % r t < a } ) / 0 cli & & \ \ \ / § § \ co \ k ® ° 3 / { t0 $ \ & e % § © = \ { & $ k 0 j § / k \ 0 {\\ � % + ° a ( \ / / \ \ \ j / k k \ $ } \ 2 k $ k / & § \ \ k § / ƒ f \ @ 0 e 2 -) q & k £ , b E 2 & / \ f / a (n \ 0 m \ o & ' 2 £ -0B A § q q q < ` 3 q q $/ ) ) m < / , - . . . / 2 IL / 4 0 CL 0.\\ k m N 6 2 W 1- 0 v o rn m Cl) M � rn 00 v LQ N O Lq C w � C L (Q d N � J U V V V V O O O O a a a M Q d R CO w 0 L U ur L co G a c O E L a 0> LO U � C 00 N 00 RS �, O N @ d Zo Or_ 0) Y U) OS — ti7 N O Q C U) O (D O o) C H vN 0 (0 3 m o � N coo 0. °0 2 tea o '� ti t C N O U! O U � � O � U U N = n E O L L 0) N CC a Z U U L C U L C d R G U1 N a F (n N N o C .� Co L ~ CU i O 0> M 0) a U) .Q 2 CD aca� 0 ,It o 0 v v T Q o 0 Z M LO CD o m 00 ,It � m L N r1 L r- C R m VJ J V V V O O O a a a ITEM G-2b City Clerk City Manager Director of Development Services Director of Public Works Finance Officer Police Chief Police Lieutenant 2006 MINIMUM MIDPOINT $ 4,050 $ 4,500 $ 6,750 $ 7,500 $ 5,805 $ 6,450 $ 5,805 $ 6,450 $ 4,275 $ 4,750 $ 5,805 $ 6,450 $ 4,680 $ 5,200 MAXIMUM $ 4,950 $ 8,250 $ 7,095 $ 7,095 $ 5,225 $ 7,095 $ 5,720 2007 MINIMUM MIDPOINT MAXIMUM City Clerk $ 4,255 $ 4,725 $ 5,200 City Manager $ 7,800 $ 8,665 $ 9,530 Director of Development Services $ 6,100 $ 6,775 $ 7,450 Director of Public Works $ 6,100 $ 6,775 $ 7,450 Finance Officer $ 4,490 $ 4,990 $ 5,490 Police Chief $ 7,025 $ 7,805 $ 8,585 Police Lieutenant $ 5,242 $ 5,824 $ 6,410 Proposed Revised 2007 MINIMUM MIDPOINT MAXIMUM City Clerk $ 4,255 $ 4,725 $ 5,200 City Manager $ 7,800 $ 8,665 $ 9,530 Director of Development Services $ 6,100 $ 6,775 $ 7,450 Director of Public Works $ 6,100 $ 6,775 $ 7,450 Finance Officer $ 4,490 $ 4,990 $ 5,490 2006 - 2008 Pay Tables Current ITEM G-2c CITY OF MEDINA ORDINANCE NO. AN ORDINANCE OF THE CITY OF MEDINA AMENDING ORDINANCE NO. 799, 2007 BUDGET AND 2007 SALARY SCHEDULE. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The following 2007 Salary Ranges for the exempt employees listed shall be as follows: Revised 2007 Exempt Salary Schedule Minimum Midpoint Maximum City Clerk $ 4,255 $ 4,725 $ 5,200 City Manager $ 7,800 $ 8,665 $ 9,530 Director of Development Svcs $ 6,100 $ 6,775 $ 7,450 Director of Public Works $ 6,100 $ 6,775 $ 7,450 Finance Officer $ 4,490 $ 4,990 $ 5,490 Police Chief $ 7,200 $ 8,005 $ 8,815 Police Lieutenant $ 6,370 $ 7,085 $ 7,800 SECTION 2. The City Manager is authorized to make any transfers necessary to carry out the terms of this ordinance. SECTION 3. The effective date of this ordinance shall be (5) days after its publication of a summary of its intent and contents. PASSED BY AT LEAST ONE MORE THAN A MAJORITY OF THE CITY COUNCIL ON THIS DAY OF 2007, AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THE DAY OF 2007. Miles R. Adam, Mayor ITEM G-2c Approved as to form: Wayne D. Tanaka, City Attorney Attest: Rachel Baker, City Clerk ITEM G-2c SUMMARY OF ORDINANCE NO. of the City of Medina, Washington On , 2007, the City Council of the City of Medina, Washington, adopted Ordinance No. , the main points of which are summarized by its title as follows: AN ORDINANCE OF THE CITY OF MEDINA AMENDING ORDINANCE NO. 799, 2007 BUDGET AND 2007 SALARY SCHEDULE. The full text of this ordinance will be mailed upon request. APPROVED by the City Council at their meeting of , 2007. Rachel Baker, City Clerk Of At ITEM G-3 City of Medina AGENDA STATEMENT AGENDA ITEM TITLE: MEETING DATE: DATE THIS ITEM WAS LAST CONSIDERED BY COUNCIL: Living Fences May 29, 2007 Not previously considered. SUMMARY OF ISSUE/TOPIC: A discussion of whether living fences (hedges) should be regulated. COMMISSION RECOMMENDATION: ❑ APPROVE ❑ DISAPPROVE ❑ SEE COMMENTS ® N/A CITY MANAGER: ❑ APPROVE ❑ DISAPPROVE ® SEE COMMENTS ❑ N/A COMMENTS: This topic is initiated by Council Member Vail-Spinosa. ❑ No Action Requested ® Action Requested ATTACHMENTS: Staff report dated May 21, 2007 BUDGET/FISCAL IMPACT: EXPENDITURE REQUIRED: see staff report ❑ BUDGETED ❑ NON -BUDGETED FUND: ❑ ❑ N/A RECOMMENDED MOTION: (ADOPT/APPROVE/AUTHORIZE) Not applicable. If Council Members have questions, you are urged to call the staff person who prepared this agenda statement prior to the council meeting. ITEM G-3a CITY OF MEDINA Office of the City Manager May 21, 2007 TO: MAYOR AND CITY COUNCIL FROM: COUNCIL MEMBER VALL-SPINOSA SUBJECT: LIVING FENCES RECOMMENDATION It is recommended that the Mayor and Council Members discuss the issue of living fences and provide direction to staff. POLICY IMPLICATION The patterns of landscaping in the streets and yards of a residential area play a key role in defining the community character. The City Council has the authority to enact Landscape requirements that are deemed necessary to protect community character. However, establishing regulations for living fences would represent a more direct involvement of the City in view and sunlight protection compared to past City policy. BACKROUND This topic is coming to the City Council at this time as a new topic proposed by Council Member Vall-Spinosa. Living fences are commonly referred to as hedges. Since living fences have a high - density of foliage and a fence -like shape, they have the potential to block the views and sunlight of neighboring properties. Establishing a maximum height for living fences could balance the right of property owners to have living fences with goal of view and sunlight maximization for neighboring properties. Such a regulation would differ from the recently repealed "Trees - View and Sunlight Obstruction" ordinance (formerly MMC 18.16) because that ordinance was advisory and was concerned, potentially, with the view and sunlight impacts of a single tree. Staff have searched for examples of living fence regulations in other Western Washington jurisdictions. While it is somewhat common for development codes to rely on living fences as commercial property buffers, these are actually minimum standards for height and density. The only example that could be found of a regulation setting a maximum standard was in Clyde Hill. Clyde Hill Municipal Code section 17.37.020-A limits the heights of Mayor and City Council Members Living Fences May 21, 2007 living fences to no more than eight feet above original grade. This regulation has existed for over ten years and enforcement is complaint -driven. If Medina were to regulate the height of living fences but not of individual trees, crafting a good definition of "living fence" will be critical and occasional disputes with property owners about classification should be expected. Clyde Hill's definition relies on the notion of the living fence playing a confinement role: A "fence" shall be any barrier that is naturally grown or constructed for purposes of confinement, means of protection or use as a boundary. (CHMC 17.04.230) Another key issue of implementing a maximum living fence height in Medina is grandfathering. Obviously protests will be more pronounced if the new standard is retroactively applied to living fences that have been maintained for several years. At the same time, if grandfathering is used it will occasionally lead to disputes about whether a nonconforming living fence height existed on the grandfathering date. FISCAL CONSIDERATIONS AND IMPACT A material impact to staff's workload is only expected if a living fence standard were to be applied without grandfathering and staff was directed to search for all violations in the City. LEGAL REVIEW This report has been submitted to the City Attorney's Office for review. Prepared by: Joseph Gellings, AICP, Director of Development Services Council Presenter: Joseph Gellings, AICP, Director of Development Services Attachment: None. 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