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HomeMy WebLinkAboutMinutes 10/18/2011• CALL TO ORDER - SPECIAL MEETING: ROLL CALL: WORK SESSION: ADJOURNMENT: CALL TO ORDER - REGULAR MEETING: ROLL CALL: • CITY COUNCIL MEETING Port Angeles, Washington October 18, 2011 Mayor Di Guilio called the special meeting of the Port Angeles City Council to order at 5:00 p.m. Members Present: Mayor Di Guilio, Deputy Mayor Perry, Councilmembers Collins, Downie, Kidd, and Mania. Members Absent: Councilmember Nelson. Staff Present: Manager Myers, Attorney Bloor, Deputy Clerk Pierce, G. Cutler, T. Gallagher, D. McKeen, S. Roberds, Y. Ziomkowski, R. Bonine, B. Coons, and D Bellamente. 1. 2012 Budget Work Session City Manager Myers and Finance Director Ziomkowski conducted a PowerPoint presentation regarding the proposed 2012 Preliminary Budget. The PowerPoint presentation outlined the process taken in balancing the 2012 Preliminary Budget of $130,843,101.00, and anticipated 2012 revenues and expenditures. Director Ziomkowski outlined the Council's revenue options concerning property tax revenue, transportation improvement district, and property tax Ievy lift. She also provided Council with 2012 supplemental budget information for further review. Another work session on the budget will be held on October 27, 2011, at 5:30 p.m. Mayor Di Guilio adjourned the special meeting at 5:59 p.m. Mayor Di Guilio called the regular meeting of the Port Angeles City Council to order at 6:05 p.m. Members Present: Mayor Di Guilio, Deputy Mayor Perry, Councilmembers Collins, Downie, Kidd, and Mania. Councilmember Nelson participated via speakerphone between 7:05 p.m. and 8:24 p.m. Members Absent: Councilmember Nelson. Staff Present: 1 It was moved by Collins and seconded by Downie to: Excuse Councilmember Nelson from the October 18, 2011 City Council meeting. Motion carried 6 -0. Manager Myers, Attorney Bloor, Deputy Clerk Pierce, G. Cutler, T. Gallagher, D. McKeen, S. Roberds, Y. Ziomkowski, P. Lusk, L. Dunbar, K. Neal, J. Burke, D Bellamente, and R. Hostetler. 6995 6996 CITY COUNCIL MEETING October 18, 2011 PLEDGE OF ALLEGIANCE: CEREMONIAL MATTERS/ PROCLAMATIONS/ & EMPLOYEE RECOGNITIONS: PUBLIC COMMENT: CITY COUNCIL REPORTS: WORK SESSION: BREAK: LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS: Mayor Di Guilio led the Pledge of Allegiance to the Flag. 1. Domestic Violence Awareness Month — 2011 Gratitude Awards Attorney Bloor introduced Becca Korby, Executive Director of Healthy Families of Clallam County. Attorney Bloor led the recognition of City employees: Police Officers Dan Morse and Lucas Degand; and Legal Department employees Heidi Greenwood and Randi Mahlum. These employees have demonstrated excellence, compassion, and a proactive response to Domestic Violence cases and will be formally recognized as Domestic Violence Gratitude Award winners at a ceremony on October 26, 2011. Norma Turner, 3928 Mt. Angeles Road, spoke in regards to the utility rates, conservation, and low - income discount policies; spoke in favor of adopting a base rate for Nippon; and spoke regarding a biomass project in Vancouver, Washington. Randall McCoy, 112 E. 11 t" Street, representing the Alternative Transportation Advocacy of Port Angeles, spoke in regards to the Spruce Trail project and specifically in opposition to Alternative 3 as proposed by Olympic National Park. Ed Chadd, 307 W. 6t" Street, spoke in opposition to the Spruce Trail project regarding Alternative 3 as proposed by the Olympic National Park, Michael Husky, 1329 Campbell Avenue, spoke in opposition to charging more for recycling services and less for garbage service; and in opposition to the new smart meters. Councilmember Mania spoke regarding his attendance at the Port Angeles Fine Art Center's 25th anniversary event. Councilmember Collins spoke regarding his attendance at the AWC Regional Conference. No other reports were given. 1. Port Angeles Downtown Association — 3rd Quarter Report Port Angeles Downtown Association (PADA) Executive Director Barbara Frederick conducted a PowerPoint presentation of the Association's 2011 Third Quarter Report. Councilmember Downie noted that he received numerous compliments regarding the attractiveness of the city and downtown during the Celebrate Elwha! event. Mayor Di Guilio recessed the meeting for a break at 6:52 p.m. The meeting reconvened at 7:00 p.m. None. 2 PUBLIC HEARINGS - OTHER: Ordinance No. 3438 • CITY COUNCIL MEETING October 18, 2011 1. Utility Retail Rate and Fee Adjustments Councilmember Nelson joined the meeting via conference call at 7 :05 p.m. Council discussion ensued regarding recycling rates. Council agreed by consensus to address recycling rates in 2012. Deputy Director of Power Resources Dunbar conducted a PowerPoint presentation regarding utility rate options and proposed utility rate and fee ordinance amendments. He explained that the proposed ordinance no longer included amendments regarding unbundling recycling from solid waste collections. Deputy Director Dunbar explained the electric utility retail rate increase options. He stated that Option 1 included an increase applied only to the basic charge, Option 2 included an increase applied only to the energy charge, and Option 3 included half of the increase applied to the basic charge and half to the energy charge. Deputy Director Dunbar noted that general principles of utility rate setting typically use the basic charge to cover set costs to reduce the risks of utility revenue not being recovered. He listed the pros and cons of each option and described the rate comparisons to other utilities in other communities. Public Works and Utilities Director Cutler noted that the Bonneville Power Association's recent rate increase affects different types of utilities in different ways by how they use power. The City of Port Angeles Utility is expecting a 14% increase. Deputy Director Dunbar reviewed comments and questions submitted at the last public hearing and provided answers. Council discussion followed. Mayor Di Guilio continued the public hearing at 7:30 p.m. Steve Nordwell, 710 S. I Street, spoke regarding time-of-use rates; the apparent lack of a rate schedule that encourages customers to conserve; suggested allowing a way for the public to make additional comments regarding time-of-use rates; and the BPA rate structure related to revenue risk. Andrew Schwab, 116 E. 10th Street, spoke in favor of a rate increase based on consumption; suggested consideration of raising the consumption rate to also cover the base costs resulting in a usage -only rate increase. Ed Chadd, 307 W. 6th Street, spoke in favor of Option 3; urged Council to consider conservation in all deliberations when setting rates; supported not making changes to recycling; encouraged the City to find a system for residents to share recycling containers; and spoke in support of the City to subsidize recycling. Norma Turner, 3928 Mt. Angeles Road, asked questions about the charges listed on utility bills. Randall McCoy, 112 E. 1 lth Street, asked for consideration of hybridized approach to minimally adjust both the base and usage rates. Mayor Di Guilio closed the public hearing at 7 :44 p.m. 3 6997 6998 CITY COUNCIL MEETING October 18, 2011 PUBLIC HEARINGS - OTHER: (Coned) Ordinance No. 3438 Council discussion continued. Customer Services Manager Hostetler explained that many of the low income customers are not conservative and use more power than other utility customers; and how raising the rate on consumption would raise the monthly bill for some of these lower income customers. Council discussion continued. It was moved by Collins and seconded by Mania to: Direct city administration to revise the electric utility rate increase to take into account a conservation incentive approach. Motion carried 4 -3 with Perry, Di Guilio, and Nelson voting in opposition. Manager Myers requested clarification on the motion. Council confirmed that Option 3 was their preference. Collins suggested a small surcharge for peak rate eventually be included in 2012. Manager Myers suggested that Council consider adoption of the remainder of the ordinance. Mayor Di Guilio conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3438 AN ORDINANCE of the City of Port Angeles, Washington, amending utility fees and rates in Chapters 3.70, 13.20, 13.44, 13,57, and 13.65, of the Port Angeles Municipal Code. It was moved by Mania and seconded by Perry to: Adopt the ordinance as read by title. Motion carried 7-0. Councilmember Nelson discontinued the conference call at 8:24 p.m. CONSENT AGENDA: Councilmember Mania requested the Farallon Professional Services Agreement Amendment No. 4 be pulled from the Consent Agenda. Resolution No. 17 -11 Director Cutler noted the addition of a resolution to the Houston - Galveston Area Council Purchasing Cooperative Interlocal Agreement Consent Agenda item. It was moved by Perry and seconded by Downie to approve the Consent Agenda to include: 1. City Council Minutes for September 13, October 4, and 11, 2011 2. Expenditure Approval List: 9/24/11 to 10/7/11 for $3,230,004.68 3. 2011 On -Call Wastewater Utility Engineering Professional Services Agreement 4. 2011 On -Call Landfill Cell Stabilization Professional Services Agreement 5. Final Acceptance Washington Substation Transmission Line Renovation Project CL06 -2007 4 CITY COUNCIL MEETING October 18, 2011 • CONSENT AGENDA: 6. Material Purchase: Pad - Mount Transformers — Award Contract LO -11 -023 (Cont'd) 7. Quit Claim Deed for Vacated Right -of -Way 9. Houston - Galveston Area Council Purchasing Cooperative lnterlocal Resolution No. 17 -11 Agreement — Resolution No. 17 -11 Motion carried 6 -0. • 8. Farallon Professional Services Agreement Amendment No. 4 Council discussed the proposed amendment to the Farallon Professional Services Agreement. It was moved by Perry and seconded by Downie to: Approve and authorize the City Manager to sign Amendment No. 4 to the Professional Services Agreement with Farallon Consulting in an amount not to exceed $54,418, which increases the maximum compensation under the agreement from $225,200 to $279,618, and to make minor modifications to the agreement, as necessary. Motion failed 3-3, with Kidd, Collins, and Mania voting in opposition. Director Cutler stressed that failure of this motion would stop the City from moving forward on this phase of the Combined Sewer Overflow project. He explained that the additional work for Farallon is required by the regulatory agency for this project. Engineering Manager Neal explained the process and timeline needed to provide the final report that summarizes findings and recommendations of soil sampling to the Department of Ecology (DOE). Attorney Bloor added that this report includes the 12 acres of land purchased from Rayonier and that the sampling data will be provided to DOE with the environmental liability and obligation remaining with Rayonier for the cleanup of the site. It was moved by Collins and second by Kidd to: Reconsider the motion. Motion carried 5 -1, with Mania voting in opposition. It was moved by Perry and seconded by Collins to: Approve and authorize the City Manager to sign Amendment No. 4 to the Professional Services Agreement with Farallon Consulting in an amount not to exceed $54,418, which increases the maximum compensation under the agreement from $225,200 to $279,618, and to make minor changes to the agreement, if necessary; and direct staff to bring back a projection of City's costs related to Amendment No. 4, to either of the Council meetings in November, 2011. Motion carried 5 -1, with Mania voting in opposition. 5 6999 7000 CITY COUNCIL MEETING October 18, 2011 OTHER CONSIDERATIONS: 3. Environmental Assessment (EA) Spruce Railroad Trail Todd Suess, Assistant Superintendent of Olympic National Park answered questions and noted that the public comment period is open until Friday, October 21, 2011. He explained the difficulty in trying to balance Natural and Cultural Resources. Council discussion continued. It was moved by Mania and seconded by Kidd to: For the City to take a position in opposition to the current design of the trail. Councilmember Downie suggested avoiding the use of a negative motion. Motion and second withdrawn by Mania and Kidd. It was moved by Mania and seconded by Kidd to: Support the County's position. Motion carried 6 -0. l . PenPly Payback Agreement Manager Myers noted amendments to the agreement and updates to the figures in the memo; and stated PenPly Manager, Josh Renshaw, was not able to attend this evening. It was moved by Collins and seconded by Mania to: Table the item to the next meeting. Motion carried 6 -0. 1. Lodging Tax Advisory Committee Appointments It was moved by Mania and seconded by Downie to: Appoint the following individuals to fill positions on the Lodging Tax Advisory Committee: Mayor Di Guilio, Abdellah Choukri, Robert Harbick, Scott Nagel, Dave Neupert, Ryan Malone, and George Bergner. Motion carried 6-0. 4. 2011 COPS Hiring Grant Award Police Chief Gallagher noted that the grant covers the cost of two officers for a three -year period. It was moved by Mania and seconded by Kidd to: Authorize the City Manager and Police Chief to sign the necessary documents to accept the grant award of $550,278.00. Motion carried 6 -0. 6 • • • INFORMATION: EXECUTIVE SESSION: CITY COUNCIL MEETING October 18, 2011 Manager Myers noted the Financial Update report and the decline in Lodging Tax Revenues while also noting that Building Permit revenues are ahead of last year. Manager Myers also reviewed the Code Enforcement report and the positive results after the removal of several abandoned vehicles. None. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 8:58 p.m. Letto& ' r Pierce, Di Guilio, Mayor a esa a r ce, ep u ty City C lerk 7 7001