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HomeMy WebLinkAboutMinutes 06/11/2002 4673 CITY COUNCIL SPECIAL MEETING in Joint Session with the Clallam County Commissioners Port Angeles, Washington June 11, 2002 CALL TO ORDER - Mayor Wiggins called the special meeting of the Port Angeles City Council to order at SPECIAL MEETING: 6:05 p.m. Commissioner Doherty announced that a meeting of the Clallam County Commissioners, held earlier in the day, had been continued to this meeting. ROLL CALL: Members Present: Mayor Wiggins, Councilmembers Braun, Campbell, Erickson, Headrick, Rogers, and Williams. Members Absent: None. Clallam County Commissioners Chapman, Doherty, and Tharinger. Commissioners Present: Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, L. Haelmlen, S. Johns, T. Smith, and D. Dickson. Clallam County Administrator Engelbertson, J. Ciarlo, A. Meyer, and B. Staff Present: Martin. Public Present: M. Schuneman and T. Price. Manager Quinn opened the meeting by referencing the minutes of previous meetings held in joint session with the Clallam County Commissioners. He indicated the minutes were provided for reference purposes and to provide the background of issues previously considered. They also serve to identify the many areas of common interest between the City and the County. Manager Quinn advised those present that the purpose of this meeting was to facilitate the coordination of policies, projects and programs, and Administrator Engelbertson invited status reports on common issues addressed by the two entities. Status Reports & Solid Waste/Landfill: Public Works & Utilities Director Cutler indicated thc Landfill Information should be in operation through mid to late 2006. The City is actively seeking annual permits with the County where there is a good working relationship. Every effort is Solid Waste/Landfill being made to control the wildlife situation because of the proximity to the airport. The City has been land applying biosolids for the second season and is looking to start the co-composting ofbiosolids and yard waste later this year. Recycled materials, minus yard waste, increased 19% over the previous year. On the matter of Landfill closure, Director Cutler indicated the long-range plan has been endorsed by the City and County, and the City is now looking to enter into local agency agreements for future operation, as well as the consolidation of the domestic water treatment facility at the Landfill. Joe Ciarlo noted the County's appreciation of the fact that the City has taken the lead in establishing the regional site. He felt it would be prudent for the City to remain -1- 4674 CITY COUNCIL SPECIAL MEETING June 11, 2002 Solid Waste/Landfill active with the Solid Waste Advisory Committee, as well as the regional group of (Cont'd) Clallam, Jefferson, Kitsap, and Mason Counties in the realm of solid waste management. Mr. Ciarlo indicated the County is looking to develop fair and equitable rates for dealing with solid waste in the long term. There are grant funds available for planning purposes in transitioning from a landfill to waste export. Brief discussion followed as to the costs that might be anticipated in conjunction with the transition, after which Commissioner Doherty announced the opening of Kitsap County's transfer station on Friday, July 26. Permit Coordination Permit Coordination: In the absence of Community Development Director Collins, Manager Quinn distributed a memorandum on UGA permit coordination, indicating there is a need for more concurrency for development, especially in the Urban Growth Area. Manager Quinn has asked the City's Departments of Community Development and Public Works & Utilities to study, for example, street standards to see if there is something in the middle that can be considered to get closer to the County's standards so that, in the future, there isn't a disparity between the two standards. The same scenario could apply to infrastructure or sign standards as well, and more consistency could make development costs much more reasonable. Consistent development standards in the Urban Growth Area directly relate to a revenue sharing agreement, and Manager Quinn indicated it would make sense for the City and the County to get closer in this regard. Andy Meyer indicated he has been having ongoing discussions with Director Collins regarding issues germane to concurrency and development regulations, as communications take place in both directions with regard to City and County projects. Development standards in the comprehensive plans are similar; however, when the policies are implemented, the differences become apparent. The two staffs are looking at interlocal agreements to establish some commonality in those standards, as there is an opportunity to bring the standards closer together to meet the needs of the City and the County as the region develops. Manager Quinn and Administrator Engelbertson have discussed the possibility of the City and Council issuing some permits on behalf of the other, something that was strongly supported by Councilman Williams. Community Development Director Bob Martin informed the group of a Permit Advisory Board at the County that was formulated to assist in the improved coordination of permitting. He offered to send meeting agendas to City staff, as many of the issues being considered could benefit from this group's input. Mr. Meyer felt a great deal of progress has been made between the two entities, and he cited a joint meeting of the Planning Commissions where common issues were discussed. Further, the County Planning Commission met to discuss stormwater management and the emerging issues between the City and County. Discussion followed. Prior Meeting Items ~ Farmer's Market: Administrator Engelbertson reported the Farmer's Market is working Farmer' s Market well, and Manager Quinn informed those present of the Market's intention to use Laurel Street between First and Front for a market on Wednesday evenings. Brief discussion ensued on the need for proper signage, particularly because of the ferry traffic. Carnegie Library Carnegie Library: Manager Quinn reported on the renovation of the Carnegie Library. Construction bids are being sought at the present time, and grant applications have been submitted to seek additional funding for restoration purposes. The City plans to enter into an agreement with the Historical Society to house an interactive museum at the Library. Manager Quinn indicated that one matter needing consideration is that of ongoing operational costs, and he stated the County will be asked for assistance in that regard. Director Cutler summarized the issue of renovation versus restoration. -2- CITY COUNCIL SPECIAL MEETING 4675 June 11, 2002 William Shore Pool William Shore Pool: Manager Quinn briefly reviewed plans to modernize the pool facility, which may include a separation of lap and recreational swimmers, slides, and a hot therapy pool. The facility upgrade will take place within the current boundaries of the City's property. Shared Computer Use Shared Computer Use: Administrator Engelbertson summarized discussions held between the City and the County on possible savings to be realized in the area of shared purchasing or cooperation in computer systems, applications, hardware, communications, and the like. Some level of combination of systems or employees would be of benefit to the public, particularly since the City Will soon be using the AS400 platform, which has been used for quite some time at the County. Administrator Engelbertson further described potential cooperation in order to achieve cost savings that may be tied to ongoing maintenance of the systems. Health Facilities Location Health Facilities Location: Administrator Engelbertson informed the group of the need for the County to relocate the health clinics and the Department of Health & Human Services. These services are presently located in the lower level, and access for the public is difficult. He asked to be informed if the City is aware of any space available for the health facilities. Annexation Annexation: Manager Quinn indicated annexation plans are on hold for the moment. City staff completed the review sessions with the public, and it is intended that a final report will be provided. The recent Supreme Court decision on the matter of the petition method for annexation has a direct bearing throughout the State on all future and, possibly, past annexations. Manager Quinn felt the City and County should now work toward agreement as to offering services to the citizens in the Urban Growth Area through agreements and revenue sharing. Annexation would have been a means by which to provide those services but the same goal can be accomplished through City/County agreements. Review&Discussion Septic System Waste Treatment: Administrator Engelbertson distributed an informational sheet itemizing local septic pumping companies, most of which are Septic System Waste hauling septage to the Shelton area. He indicated there is a need for a treatment plant Treatment to accept this waste. Bob Martin added that this is a joint opportunity for the City and County, particularly because the County is governed by State requirements regarding O & M on current and new septic systems. The volume of septage will, therefore, increase, and it would be advantageous to have a means to handle the waste locally. Discussion followed on the current amount of waste generated, the associated transportation costs, and the possible rate for local disposal. Consideration was also given to a possible rate and the means by which the City and County could meet their financial needs with respect to the disposal of the waste, specifically as relates to the City's infrastructure costs and the County's O & M compliance costs. In the ensuing discussion, Councilman Campbell referenced the City's acceptance of sludge from Neah Bay, and he recalled that the test went particularly well. He felt a joint effort on this matter could prove to be a win-win situation. Director Cutler further reviewed the acceptance of septage from Neah Bay, and he stated there would be a likely expense of $250-$300,000 for plant modifications in order to accept the septage. Administrator Engelbertson suggested that the two staffs prepare a proposal for capital and rate structures for future consideration. Manager Quinn stated this would be a City operation, and the County or the rate payers would need to pay for the system. He suggested County consideration of a mandate that local septage must be treated locally. Commissioner Tharinger indicated he would be interested in a long-term guarantee. It was agreed the two staffs will meet to prepare a proposal for consideration by the two entities. -3- 4676 CITY COUNCIL SPECIAL MEETING June 11, 2002 UGA Standards - UGA Standards - Stormwater: Manager Quinn summarized the City's plans to move Stormwater ahead with the stormwater utility concept. Based on public input, certain changes are being made, and the City is looking for ways to mitigate some of the costs to the residential and commercial customers. The City is under certain Federal and State mandates to manage stormwater, and one of the issues to be considered is the fact that the same stormwater runs through various basins in the County and in the UGA. Any ability to work out stormwater standards in terms of those drainage paths is in the interest of all concerned, as there is some inequity in the City treating the stormwater than emanated in the County. Manager Quinn asked that the County consider some stormwater regulatory compatibility. Lengthy discussion ensued, and Commissioner Doherty felt there was a good start with the previous joint meeting of the Planning Commissions. Councilmember Rogers indicated that everyone wants to take care of the matter, but the bottom line is the cost to the taxpayers - there is a need to balance the problem with the available income in the community. Andy Meyer stated the Commissioners and Planning Commission met to gain an understanding of the stormwater management issue; the Commission agreed this is an important issue and discussions should be held with other jurisdictions to determine how the County could approach the subject from a quality perspective. The County has other peripheral issues, such as timber harvest conversions, and they plan to study the stormwater matter further. It is planned that discussions will be held with the City as the deliberations get underway. In the. ensuing discussion, Commissioner Tharinger related how Kitsap County is dealing with stormwater and the associated costs. He urged the City to identify the hard costs and a long-term funding program. Bob Martin indicated that, unlike the City, the County is unable to control the flow of water. In addition, the County doesn't have the same amount of impervious surfaces as the City. It was agreed that the City and County can work to address these issues in the UGA, and Bob Martin felt this is something the County can consider for future development. Commissioner Tharinger stated the time line for new development on stormwater issues is this fall; another matter impacting this issue is cleating and grading. The two staffs will plan to move ahead on stormwater management. Revenue Sharing Revenue Sharing: Manager Quinn summarized meetings he had with Administrator Engelbertson on the matter of revenue sharing between the City and County. Although not yet seen by the Commissioners or the Council members, a draft basic agreement has been prepared. On the matter of annexation, the County does not want the City seeking commercially heavy areas. It is agreed that both entities must follow the comprehensive plans to protect both interests, and there is basic agreement for phased revenue sharing over a five year period, similar to annexation. Further, it is acknowledged there is a need for urban services such as sewer, which then led to discussion regarding the Walmart septic system and the possibility for the City and County to share revenue and set funds aside to help pay for that particular service. Another funding possibility is the County Opportunity Fund. One distinct difference between the City and County approach to revenue sharing is that the County has identified only sales tax from new development as part of the consideration; whereas, the City would like to have all taxes made a part of the revenue sharing. Manager Quinn indicated there is a need to protect the County's investment in infrastructure in the UGA. Administrator Engelbertson stated the County's position on annexation is that it is intended to relate to services, as well as the encouragement of economic growth. Lengthy discussion followed, and Administrator Engelbertson reviewed the Kitsap County approach to revenue sharing wherein a regional council was established with all entities represented. Agreements have been entered into for revenue sharing, but there are also separate and specific agreements based on other needs. In response to an inquiry from Commissioner Chapman, Manager Quinn indicated a draft agreement may -4- CITY COUNCIL SPECIAL MEETING 4677 June 11, 2002 Revenue Sharing be ready for review in the third quarter. (Cont'd) After brief discussion, commentaries were offered as to the benefits of the meeting and the good working relationships that have been developed between the City and County staffs. It was agreed the next meeting will be hosted by the County. Break This portion of the City Council Special Meeting was adjourned at 8:00 p.m., at which time Mayor Wiggins recessed the meeting for a break. The meeting reconvened at 8:10 p.m. ROLL CALL AND At Mayor Wiggins' request, Clerk Upton repeated the roll call. The Pledge of PLEDGE OF Allegiance to the Flag was then led by Building Official Haehnlen. ALLEGIANCE: Conference Center Conference Center: Economic Development Director Smith distributed additional information, advising the Council that the purpose of this discussion was for the Council to consider a recommendation of concurrence on the matter of the Conference Center from the Conference Center Review Committee, the Lodging Tax Advisory Committee, and the Downtown Forward Executive Committee. Mr. Smith delineated the areas of progress made on the Ehm proposal in meeting the conditions of the original RFP: pre-design and site improvements, on and off street parking, business and marketing plan, property acquisition and lease, as well as progress on available financing. Mr. Smith indicated the project development schedule is moving forward, and there has been progress on the basic term of an agreement between the City and Ehm for the lease of the conference center space. With the assistance of the City Attorney, a draft letter of intent has been prepared between the City, the Port, and the Department of Natural Resources, which is inclusive of the City's intent to move forward and potentially commit lodging tax funds toward the proposal, conditioned on the completion of the missing elements of the Due Diligence Response. Mr. Smith also noted progress has been made on the implementation strategy, the budget, and the final deal structure for the project. Councilman Campbell indicated the Conference Center Review Committee studied the Due Diligence Response to determine where the applicant is at the present time in terms of completion. The proponent has come forward with a new construction financing matrix and management operations matrix in which he has described the options for equity participants. Further, Mr. Ehm has identified a conference center and hotel management company with the selection of the Allied Hospitality Group and the Marriott flag. After reviewing all of the new information, it was the review team's conclusion that the City could move to the next phase of the project: to begin developing £mal documents for the letter of intent, the £mal agreement for the leasing and operation of the conference center, the receipt and acceptance of the marketing plan, the marketing budget, and the implementation strategy for the conference center. Further, the review team recommended that the City Council accept the Due Diligence phase as substantially complete. The Lodging Tax Advisory Committee and the Downtown Forward Executive Committee concurred with the recommendation. Mr. Smith acknowledged the individual members of the Conference Center Review Committee, rioting hbw much time has been committed to this endeavor. He felt that Mr. Ehm's most critical areas are the marketing plan, the implementation strategy and budget, and the deal structure. Mr. Ehm has indicated the process has been somewhat hindered lacking a commitment from the City for the lodging tax funds. Mr. Smith noted that the proposal has come a long way, especially with the addition of the Allied Hospitality Group. It is likely more financial commitments will be forthcoming because of Allied's credibility and expertise. Lengthy discussion followed on DNR's approval process, as well as the means by -5- 4678 CITY COUNCIL SPECIAL MEETING June 11, 2002 Conference Center which the Marriott flag was selected. Mr. Randal Ehm, 2707 California Avenue SW, (Cont'd) Seattle, approached the podium and informed the Council how the project transitioned to the Marriott flag. Mr. Ehm addressed local concern that the conference center/hotel may impact already existing local businesses. He indicated the marketing plan will be much stronger in its final form and that a full-service facility such as this requires the involvement of someone like Allied. Discussion followed, with Mr. Smith responding to an inquiry from Councilman Braun regarding the sublease. With the use of an overhead, Mr. Smith described in detail the property acquisitions, lease, and sublease arrangements necessary for the project to proceed. Councilmember Rogers emphasized the importance of the marketing strategy being written specific to the market being targeted by this project, as there is great concern on the part of other lodging facilities that business will be lost to the new facility. She felt that, with the right marketing strategy, the project can be a win-win situation for the entire community. Councilman Williams urged everyone to remain cognizant of the Hood Canal Bridge closure as relates to the projected occupancy of the new facility. After further brief discussion, Councilman Campbell moved to accept the recommendations of the Conference Center Review Team, the Lodging Tax Advisory Committee, and the Downtown Forward Advisory Committee and, further, that 1) the Due Diligence Response from Ehm Architecture is "substantially complete"; 2. staffbe authorized to sign'a Letter of Intent to commit the subject City Lodging Tax resources toward the Ehm proposal; and 3) staff be further authorized to negotiate an agreement, subject to the Council's final consideration and approval, to commit the subject City Lodging Tax revenues to the Ehm project, pending receipt and final approval of the project's Marketing Plan, Marketing Budget and Implementation Schedule. The motion was seconded by Councilman Williams and carried unanimously. Ms. Sarah Lynch approached the podium and, speaking on behalf of her father, indicated that Port Angeles doesn't need another hotel, as business will be taken away from the existing facilities. City Council Retreat City CouncilRetreat: Because of the lateness of the hour, Mayor Wiggins indicated the proposed agenda for the June 15 Council retreat could be "short listed" at the beginning of the retreat. Multi-Cultural Statement MuiR'-Cultural Statement by City Council: Mayor Wiggins referenced the draft statement and expressed interest in having the statement placed on the next City Council agenda. He indicated the statement, to be written in the form of a proclamation, will be shared with all cities represented at the AWC Conference. Counciimember Rogers moved to accept the proclamation' as written. Councilman Braun seconded the motion, which carried unanimously. ADJOURNMENT: The meeting was adjourned at 9:10 p.m. ~Glenn Wiggins, Mayor B~cky f. Up~, ~ Cler~ ~ -6-