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HomeMy WebLinkAboutMinutes 04/01/2003 4912 CITY COUNCIL MEETING Port Angeles, Washington April 1, 2003 CALL TO ORDER - Mayor Wiggins called the regular meeting of thc Port Angeles City Council to order REGULAR MEETING: at 6:00 p.m. ROLL CALL: Members Present: Mayor Wiggins, Councilmembers Braun, Campbell, Headrick, Rogers, and Williams. Members Absent: Councilmember Erickson. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, G. Kenworthy, S. Johns, and T. Smith. Public Present: P. Lamourcux, A. Holzschuh, and T. Price. PLEDGE OF The Pledge of Allegiance to the Flag was led by Councilman Braun. ALLEGIANCE: PUBLIC CEREMONIES, 1. Chamber of Commerce Report presented by Russ Veenema, Chamber PRESENTATIONS AND Executive Director: PROCLAMATIONS: Russ Veenema, Chamber of Commerce Executive Director, distributed various pieces Chamber of Commerce of information to the Council, to include the 2003 Visitor Guide, the Port Angeles rack Report card, the 2003 Washington State Visitors' Guide, copies of advertising placed in different periodicals, as well as copies of comparative statistics for 2002 and 2003. Mr. Veenema explained the various documents, noting that brochure requests are down because tourism has been greatly impacted by the present chaos in the world. He reviewed in detail the 2002 and 2003 statistical comparisons for the Visitor Center door counts, room tax revenues, sales tax revenues, web visits, and lodging occupancies. Mr. Veenema explained each category indicating that, with the exception of sales tax, the numbers are down in 2003. He assured the Council that he would continue to monitor the situation. Mayor Wiggins and Councilmembers Campbell and Braun expressed appreciation for Mr. Veenema's efforts to enhance tourism in the area, as well as the valuable information gathered as a measurement of tourism marketing. Mr. Veenema expressed disappointment with the lack of support at the State level to extend the area's sport fishing season, but discussions in this regard will continue. Mr. Veenema referenced an upcoming survey to be conducted on behalf of the City, County, and P.U.D. by the Chamber of Commerce as relates to sewer services being considered for the Eastern Urban Growth Area. Additionally, he thanked the Council for its continuing efforts on the Gateway Project, expressing interest in the Visitor Center's involvement. Mr. Veenema discussed the cooperative effort that came forth in producing a video for the Discovery Channel at a cost of $14,500; the program should air on May 30. Councilman Williams expressed thanks to Mr. Veenema for taking the lead in conducting the history tours; Mr. Veenema indicated the guided tours will commence this month, twice daily, Monday through Saturday. -1- 4913 CITY COUNCIL MEETING April 1, 2003 Earth Day Proclamation 2. Earth Day Proclamation: Mayor Wiggins read a proclamation declaring April 22, 2003, as Earth Day. The proclamation was accepted by Director Cutler, who had earlier distributed various promotional items for recycling. WORK SESSION: None. LATE ITEMS TO BE Arla Holzschuh, Port Angeles DowntownAssociation, 105 1/2 E. lSl Street, thanked the PLACED ON THIS OR Council for forming the Parking Ad Hoc Committee and Councilmembers Rogers and FUTURE AGENDAS: Campbell for their attendance and guidance. As a result of a number of meetings held, a great deal of progress has been made in working towards a parking solution for the downtownarea. The Board of Directors of the Downtown Association met to consider the recommendation forwarded by the Ad Hoc Committee and, at this time, Ms. Holzschuh read into the record the following letter addressed to the City Council: "The Port Angeles Downtown Association Board of Directors has voted unanimously to support the Council's Parking Ad Hoc Committee recommendation referred to as Solution 2. The solution includes a second level at the International Gateway site in Tidelands East, opening up of parking spaces on the southerly side of the 200 East Block of Front Street, three-hour parking in the City parking lot at the City Pier, diagonal parking on Cherry Street and the 200 North Block of Oak Street, a street level structure over the City's parking Lot E which is next to Zak's, and the development ofa waterfrontpromenade fromthe City Pier to Oak Street. The Board wishes to reaffirm the five points that conditioned their support of the Gateway Project in March, 2001. Conditioned upon the assurance by the City and/or Transit that there be 1.) No net loss of parking; 2.) Continuing mitigation of the impact of the buses; 3.) Resolution of traffic flow and congestion problems; 4.) No net loss of administrative revenue; and 5.) A percentage for the arts, the Board voted to support the Gateway Project. We appreciate the positive solution to resolve the no net loss of parking and strongly urge the City to support the recommendation of its Parking Ad Hoc Committee. Signed by Rudy Hiener, President, with copies to Clallam Transit System Board of Directors, Mike Quinn as City Manager, and Dan DiGuilio, the General Manager of Clallam Transit System." Ms. Holzschuh again expressed appreciation for this concerted effort. In view of Ms. Holzschuh's comments, Mayor Wiggins felt it appropriate to address Agenda Item I. at this time. OTHER Status Report & Preliminary Recommendations on Gateway by Parking Ad Hoc CONSIDERATIONS: Committee: Status Report & Economic Development Director Smith, aided by PowerPoint slides, conducted a Preliminary Recommenda- review of the options and potential solutions to downtown parking concerns and other tions on Gateway by possible business impacts resulting from the development of the Gateway Project. The Parking Ad Hoc Committee issues had been studied in depth by the Parking Ad Hoc Committee and, before discussing those in detail, Mr. Smith distributed various documents supportive to the presentation. He then reviewed the Ravenhurst Draft Parking Garage Study which conceptualized a 350-space garage either at the City Light lot or on Tidelands West. The garage could offset parking shortfalls experiencedbecause of the Gateway Project and the Oak Street development, with funding provided by the City, the Oak Street developer, bond financing, and revenues generated from the facility. The preferred site in the draft study was identified as Tidelands West. Mr. Smith then acknowledged the members of the Parking Ad Hoc Committee, all ofwhomhad agreed to address conflicts between -2- CITY COUNCIL MEETING 4914 April 1, 2003 OTI-IER the Gateway design and the goal of no net loss of parking. Parking needs were CONSIDERATIONS: identified in relation to ferry passengers, retail customers, and permit parking, and a (Cont'd) goal was established to create new parking in close proximity to current parking. Further, the members of the committee agreed that a solution should involve as much Status Report & current design investment as possible and should also be financially feasible. Other Preliminary Recommenda- considerations involved the need to identify a solution that would help leverage an Oak tions on Gateway by Street development, plus an added solution in terms of changing the current Parking Ad Hoc Committee configuration of on-street parking. (Cont'd) Mr. Smith offered historical perspectives of the Gateway Project and the Port Angeles P.B.I.A., after which he discussed the "brainstorming" sessions held on parking solutions as relates to the Gateway design. With regard to the specific suggestions made on parking, Mr. Smith showed slides depicting aerial projections of the various solutions considered, all of whichhad been enumerated earlier by Ms. Holzschuh, as well as a projection of the comprehensive solution. He indicated that construction of the Tidelands West block parking garage could be in a phased approach. Attention was then directed to projected costs, with the original design estimated at $6,391,000 and the solution design estimated at $11,262,000. Mr. Smith contemplated funding for the original design could fall about $1,000 short, with funding sources being the Federal Transportation Administration, the Transportation Improvement Board, and the Chamber Visitor Center. Added funding sources for the solution design could include the sale of City/P.B.I.A. land, as well as a parking revenue bond. In this instance, a funding gap of $872,000 was indicated. Mr. Smith suggested the funding gap be closed by private investment and indicated it is unknown as to the level of private sector support but, ultimately, the level of contribution must come close to the $872,000 funding gap. Mr. Smith continued that private sector investment can occur in different ways, such as an increase in the P.B.I.A., a downtown LID, a parking tax paid by consumers, a direct private sector investment, or a combination of the above. The committee recognizes that these recommendations cannot come to fruition absent this private sector investment. Manager Quinn offered input on the financing side of the solution, feeling this to be a balanced approach in terms of funding sources from businesses, property owners, and consumers. The P.B.I.A. fee generates approximately $22,000+; the average fee is $115 per business with 192 paying businesses. There are multiple rates based on the size of the business and the number of employees. A proposal had been submitted previously to increase P.B.I.A. fees by 20%, which could generate an additional $4,400. Over a 20-year time period, with funds provided up front for capital, this could generate $50,000 for capital financing. If an increase of 40% were instituted, $100,000 could be generated; if the P.B.I.A. fee were to be doubled, $250,000 might be generated in terms of improvements. He indicated that these possibilities, at the very least, give the Council an idea how additional funds might be generated. Secondly, Manager Quinn addressed the possibility of a downtown LID, suggesting the consideration that property owners might be involvedbecause of the improvementsthat would positively influence the commercial viability of their property. Another benefit would be the increased property values which should then reflect on lease rate capabilities. An LID was done before in the downtown area in the 1980's, and Manager Quinn indicated that over $680,000 was generated for downtown improvements for an average per lot assessment of under $3,400. Interest rates at that time were actually higher than the current rate, and similar numbers could likely be generated if property owners were to pay $250-$500 per year. A combination of participation from the property owners and the business owners could likely generate considerable financing. Another consideration for financing could involve consumers, and Manager Quinn referenced the fact that consumers would pay parking fees, The City could consider 4915 CITY COUNCIL MEETING April 1, 2003 OTHER the adoption of a parking tax which is authorized under RCW 82.80.030, and a parking CONSIDERATIONS: tax of 5% could generate from $8,500 - $10,000 per year in terms of estimates prepared (Cont'd) by Ravenhurst at the low end for strictly a parking garage. The parking tax can be applied to all parking facilities in which fees are charged, so income can also be Status Report & generated from surface lots managed by other commercial operators. Manager Quinn Preliminary Recommenda- indicated that a parking tax can be paid either by the operator of the parking facility or tions on Gateway by by the consumer. With the ability of charging the parking tax and leveraging that for ParkingAdHoc Committee capital financing, Manager Quinn felt $100,000 - $200,000 could be generated. He (Cont'd) identified other potential sources of miscellaneous revenues, such as private donations or private investments in the form of a purchase of a lot or space for the benefit of business employees, as well as other types of private investmentsand donations over a course of 20 years. Other revenue sources to be considered are parking fines and forfeitures. Manager Quinn summarized that, between consumers, property owners, and businesses, a balanced approach might be adopted to easily generate the amount of money needed for capital financing to make up the funding gap. Mr. Smith advised the Council that, although private sector investment hasn't been solidified, there are many options that can be pursued. As stated by Ms. Holzschuh, this overall proposal is gaining ground. From the historical perspective, Mr. Smith indicated that the DowntownForward Master Plan did not have any supportive funding for the proposals brought forward. However, there was a plan and there was consensus and, as a result, there is an investment in downtown Port Angeles between public and private sector investment of over $19 million to date, most of which is private sector investment. He expressed confidence that the community could finalize the necessary funding for the proposed parking solution, particularly because of the collaborators involved in the Gateway redesign endeavor. He recommended that the Council consider this comprehensive solution at a work session where the financing, cost estimates, and designs can be discussed in depth. The Council then agreed to set a special meeting for this purpose for Tuesday, April 29, 2003, at 6:00 p.m. Break Mayor Wiggins recessed the meeting for a break at 7:20 p.m. The meeting reconvened at 7:40 p.m. FINANCE: 1. Contract Change Order No. 1 - Reservoir Cleaning and Inspections, Project 02-32: Contract Change Order Reservoir Cleaning and Public Works & Utilities Director Cutler explained to the Council that one inch of Inspections sediment was expected during the cleaning of the Peabody Heights reservoir; however, almost two inches were found thus necessitating this change order. The change order results in a contract amount that exceeds $15,000, and City Council approval is required. After limited discussion, Councilman Campbell moved to approve and authorize the City Manager to sign Contract Change Order No. 1 to LiquidVision Technology in the amount of $5,102.71 for removal of excess sediment. The motion was seconded by Councilman Headriek and carried unanimously. Laurel Street Slide Repairs 2. Laurel Street Slide Repairs, Project 96-05, Construction Change Order and Construction Change Order Engineering Services Amendment: and Engineering Services Amendment Director Cutler provided background information with regard to an alternate solution for the Laurel Street Slide Repair Project. This issue had been discussed by the Council in November, at which time staffwas directed to return with a finalized design and negotiated cost. Deputy Director of Engineering Services Kenworthy informed the Council that, at the time, the estimated project cost was $210,000. Primo Constmction's current estimate for project construction is $203,000; however, the contractor's cost for doing the helical soil nailing increased by $15,000. The Engineer's estimate was $187,000 and, with the added geoteclmical work, a total of $216,000 to finish the contract will require an additional $25,000 from the General Fund over the original estimate. Mr. Kenworthy showed an exhibit to the Council of -4- CITY COUNCIL MEETING 4916 April 1, 2003 Laurel Street Slide Repairs the project design, and he explained the process to be used for the project. Construction Change Order and Engineering Services Mr. Kenworthy, at the request of Councilman Headrick, clarified the project costs and Amendment (Cont'd) funding sources. Councilman Headrick expressed concern with the use of additional General Fund resources, and Councilman Braun felt that costs may escalate even further should the Council choose not to proceed at this time. Councilmember Rogers shared concern with the use of General Fund resources; however, she felt there was no other solution in view of the hazardous nature of the area. The Council was informed that the project should be complete by the end of May and, after further discussion, Councilmember Rogers moved to approve and authorize the City Manager to sign Construction Change Order No. 1 with Primo Construction in the amount of $111,416.60 and Amendment No. 1 to the agreement with Milbor-Pita for added engineering service in the amount not to exceed $12,800.00 and, further, to allocate $25,000 in added General Fund reserves and $50,000 in Electric Utility reserves to cover estimated completion costs. The motion was seconded by Councilman Braun and carried by a majority vote, with Councilman Headrick voting in opposition. Marine Life Center 3. Marine Life Center Contract: Contract Parks & Recreation Director Cormelly presented information pertinent to the 2003 agreement with Peninsula College for the Marine Life Center noting that, due to budget constraints, there has been a $5,000 reduction in the amount typically awarded for the operation of the Center. However, in negotiating the agreement, a creative solution has been generated in the form of revenue sharing, and Director Connelly explained the relevant details. He advised the Council that the hours of operation have been reduced somewhat. Discussion ensued concerning the need for marketing of the facility, as well as the need to move the front door to where the entrance is more obvious. Director Connelly indicated the College has expressed interest in negotiating a future contract for a longer term, perhaps 3 - 5 years. Councilman Braun moved to authorize the Parks & Recreation Director to sign the agreement with Peninsula College for year 2003 operation of the Marine Life Center. Councilman Campbell seconded the motion, which carried unanimously. Interlocal Agreement with 4. Interlocal Agreement with Clallarn County on Reciprocal Building & Claltam County on P/ann lng Services: Reciprocal Building & Planning Services Associate Planner Scott Johns advised the Council that the proposed amendment is necessary in view of the added language pertinent to building inspections. Clerk Upton responded to Councilmember Rogers that the County had approved the Interlocal Agreement earlier in the day. Councilman Campbell moved to approve the proposed City/County Interlocal Agreement amendments for building review services and a more current hourly rate and authorize the Mayor to sign the agreement. Councilman Headrick seconded the motion, which carried unanimously. Cingular Wireless Antenna 5. Cingular Wireless Antenna Lease at Shane Park: Lease at Shane Park Parks & Recreation Director Connelly summarized information pertinent to the proposed Cingular Wireless Antenna Lease at Shane Park, noting the installation of the antenna would replace an existing light pole at the Park. This is the same type of installation as that of the VoiceStream antenna already located at the Park. Aided by PowerPoint slides, Director Connelly showed pictures of the antenna placement, indicating that co-location with VoiceStream was not possible as the pole was not tall enough. In the ensuing discussion, Director Connelly related a desire expressed by the Parks, Recreation & Beautification that Shane Park not become an "antenna park". Councilman Braun indicated the proposed lease had been discussed by the Real Estate Committee, and it was noted that anything over 125 feet would require the placement -5- 4917 CITY COUNCIL MEETING April 1, 2003 Cingular Wireless Antenna of a light in view of aircraft in the vicinity. Manager Quinn offered an amendment to Lease at Shane Park the lease language, adding a requirement for the payment of a Leasehold Tax, after (Cont'd) which Councilman Headriek moved to authorize the Mayor to sign the lease, as amended by the City Manager, allowing Cingular Wireless LLC to construct and operate a wireless communications antenna at Shane Park. Councilman Braun seconded the motion, which carried unanimously. CONSENT AGENDA: Following brief discussion pertinent to items on the Check List, Councilman Braun moved to accept the Consent Agenda, to include: 1.) City Council Minutes of March 18, 2003; 2.) Expenditure Approval List - March 25, 2003 - $572,122.47; 3.) Electronic Payments - March 24, 2003 - $330,008.40; 4.) Final Acceptance and Release of Retainage for Mezzanine Contract; and 5.) 2003 United Way Contract. The motion was seconded by Councilman Campbell and carried unanimously. CITY COUNCIL Manager Quinn noted the first Council meeting in May was corrected to May 6. The COM3$ITTEE Gateway meeting scheduled for May 4~ was cancelled, and Councilmember Rogers REPORTS & announced a Community & Economic Development meeting for May 4th, 2:00 p.m. CALENDAR: Councilman Williams generated discussion regarding the next Real Estate Committee meeting, which was then confLrmed for April 14~hat 4:00 p.m. Councilman Headrick attended a meeting of the Law & Justice Committee; discussions were again held concerning the proposed 1/10th of 1% sales tax. The County is still a proponent of using the tax revenues for corrections and juvenile facilities. Councilman Braun attended the OPS Awards luncheon, and a meeting of the Ad Hoc Ice Skating Sports Facility. The group will bemeeting on April 17 at 7:00 p.m. with the Pool Renovation Committee. A work session is being planned for the City Council on the entire project, likely the first part of May. Councilmember Rogers attended the EDC Annual Meeting, made a trip to Olympia concerning the Graving Yard, and has been working on economic development projects to be discussed at a future date. She participated in the Parking Ad Hoc Committee meetings, and has been working on seeking appropriations for the Drag Task Force. Councilman Williams attended a meeting on the Hood Canal Bridge project, during which consideration was given to mitigation efforts, parking, and ferry service. Mayor Wiggins attended the Tribal Potlatch which was a most successful event. ORDINANCES NOT None. REQUIRING PUBLIC HEARINGS: RESOLUTIONS: None. PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - None. OTHER: INFORMATION: None. EXECUTIVE SESSION: The meeting adjourned to Executive Session at 8:35 p.m. to discuss an item of potential litigation for 10 - 15 minutes. RETURN TO OPEN The meeting returned to Open Session at 8:50 p.m. SESSION: -6- CITY COUNCIL MEETING 4918 April 1, 2003 ADJOURNMENT: The meeting was adjourned at 8:50 p.m. ~ ....... Glenn Wiggins, Mayor Becky J. Upt6~ CitxT~Clerk -7-