HomeMy WebLinkAboutMinutes 07/07/2009
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CALL TO ORDER-
REGULAR MEETING:
ROLL CALL:
PLEDGE OF
ALLEGIANCE:
PUBLIC CEREMONIES/
PRESENT A TIONS &
EMPLOYEE
RECOGNITIONS:
National Recreation &
Parks Month
Dream Playground Project
Recognition
Denver Gouge Volunteer
Recognition
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6473
CITY COUNCIL MEETING
Port Angeles, Washington
July 7, 2009
Mayor Braun ca1\ed the regular meeting of the Port Angeles City Council to order at 6:00
p.m.
Members Present:
Mayor Braun, Deputy Mayor Wharton, and Councilmembers
Di Guilio, Kidd, Perry, Rogers, and Wi1\iams.
Members Absent:
None.
Staff Present:
Manager Myers, Attorney Bloor, Clerk Upton, G. Cutler, T.
Ga1\agher, D. McKeen, N. West, Y. Ziomkowski, T. Pierce,
R. Bonine, and C. Delikat.
Public Present:
B. Blore, K. Spence, P. Gagnon, P. Feeley, B. Marsh, R.
Tu1\och, N. McDonald, The Gouge Family, E. Fetchiet. J.
Johnston, M. & 1. Adamich, P. Tietz. R. Springer, 0
Campbe1\, B. Stokes, S. Elmelund, R. Chambers, L.
Szczepczynski, L. Borchers, M. Newcomb, N. Price-Fox, J.
Jones, E. Petersen, T. Sanford, S. Nixon, L. Little, V. Adams,
P. Downie, and G. Shield. A1\ others present in the audience
failed to sign the roster.
The Pledge of A1\egiance to the Flag was led by Mayor Braun.
1. National Recreation & Parks Month:
Mayor Braun read and presented a proclamation to Deputy Director of Recreation Bonine
and Parks & Street Superintendent Delikat, declaring the month ofJuly, 2009, as National
Recreation and Parks Month.
2.
Dream Playground Project Recognition:
Mayor Braun, joined by Deputy Director Bonine and Superintendent Delikat, read and
presented a proclamation to the volunteers from the Dream Playground Foundation,
recognizing their efforts on the development of the Dream Playground and the new Picnic
Shelter at Erickson Playfield. Volunteers and Board members introduced themselves,
after which the Council was presented with a membership in the Grand Mystic Order of
the Dragon Slide.
3.
Denver Gouge Volunteer Recognition:
Mayor Braun read and presented a proclamation to the Denver Gouge family, recognizing
the life and volunteer service of Denver Gouge, who recently passed away.
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6474
CITY COUNCIL MEETING
July 7, 2009
Excellence in Downtown
Revitalization A ward /
Avenue ofthe People
Project
Port Angeles HarborW orks
Development Authority
Report
4. Excellence in Downtown Revitalization Award / Avenue of the People Project:
Bob Stokes, 118 12 E. Front Street, informed the Council that on July 18, 2006, some
artists were presented with a proclamation declaring Port Angeles as an artist-friendly
community. The group put together a project in town that involved the support of many
agencies and groups, resulting in the Avenue of the People project. The Executive
Director of the Port Angeles Downtown Association submitted an application to the State
Department of Community Trade and Economic Development for an Excellence in
Downtown Revitalization Award. The project was the recipient of the award, and Mr.
Stokes felt the award should be presented to all those who made it happen. He presented
the award to Mayor Braun for placement in City Hall.
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5. Port Angeles HarborWorks Development Authority Report:
Jeffrey Lincoln, 1115 E. Front Street, Executive Director of the Port Angeles
HarborWorks Development Authority, used PowerPoint slides to provide a status report
on the Authority's recent activities. He cited recent accomplishments in terms offinancial
accounting, hiring of Executive Director, dialog underway with Tribal staff,
implementation of web site, opening of storefront, and negotiations with Rayonier
underway. Mr. Lincoln noted that discussions with Rayonier have included the potential
funding of due diligence, the status of RIfFS with DOE, and the current Agreed Order.
Mr. Lincoln summarized the public meeting held June 9'\ and he indicated the PDA is
in constant contact with the City, Port & Tribe, with a full integration of efforts.
Mr. Lincoln indicated the PDA doesn't have a property agreement with Rayonier, but will
consider a Prospective Purchaser Agreement. The Authority applied for a DOE
Integrated Planning Grant and has been told it has been favorably considered for
$200,000. Mr. Lincoln will also be looking into the possibility of an EP A Brownfield
Assessment Grant. He discussed the long-term schedule inclusive of key milestones, an
RFQ for consultants, and the short-term goals over the next 60 - 90 days. Mr. Lincoln
summarized the major elements of the budget, the need for cash flow because of grant
requirements, and the forecast of anticipated costs that include environmental and
engineering services to support due diligence. He expressed the desire to create
something on the property that is self sufficient. He discussed diminishing marginal
returns, provided a year-to-date report on the 2009 budget, and reviewed the proposed
2010 budget, as well as sources of revenue, and cash flow. Mr. Lincoln stated that
additional funding is needed before further obligations can be made for due diligence and
market studies.
Mr. Lincoln responded to questions from the Council, providing clarification on potential
Rayonier funding, City and Port funding, possible grants and associated requirements, as
well as the potential impact of Ennis Creek on development of the Rayonier site. He
reiterated specific objectives as the Authority moves forward in its efforts, indicating
HarborW orks would act as the developer and would repay the loans from the City and the
Port. He felt this project is closer to creating an optimal outcome than any he has seen.
Responding to an inquiry, Mr. Lincoln discussed marginal returns based on past
experience, and he briefly discussed the role ofthe Jamestown Tribe. He clarified there
is no adversarial relationship with the Lower Elwha Tribe, and the relationship he
envisions is one of a business nature in order to join with and benefit from the sovereign
ability of the Tribe to accomplish a greater good. Mr. Lincoln acknowledged he had set
an aggressive schedule over the next six years, but he emphasized the property has been
laying afoul for ten years and much can be accomplished if everyone comes together.
Individual Councilmembers expressed their appreciation ofMr. Lincoln's dedication and
energy.
Manager Myers advised the Council that the HarborWorks budget was being presented
for information only this evening, and that it would be placed on the next Council agenda
for approval. Any questions from the Council should be directed to Mr. Lincoln in the
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Port Angeles HarborW orks
Development Authority
Report (Cont'd)
Employee Recognitions
PUBLIC COMMENT:
RESOLUTIONS:
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Code Enforcement ~
Limited Notice of
Infraction Authority
Resolution No. 14-09
CITY COUNCIL MEETING 6475
July 7, 2009
meantime. Manager Myers reminded the Council that the funding is being made available
from the Economic Development Fund, which has a balance of$6 million, and there will
be no competition with other City projects. Brief discussion ensued on the aggressive
time frame of six years and the kind of assurances needed that the project will get done
in that period of time. Mr. Lincoln responded that he has done more difficult things more
quickly, and he felt it can be turned into a project and not a process. He shared his vision
in that, halfway through the second or third year, he could see infrastructure under
construction, walkways and paths on the Trail connected, access to the waterfront, the
issuance of public notice on the second phase of redevelopment, and signs posted on
some parcels announcing what is coming. Mr. Lincoln was thanked for the thorough
report.
Manager Myers announced the Street Division was recently recognized by the Chamber
of Commerce for landscaping and the downtown flower baskets. The same group of
employees was recognized by the Kitsap Babe Ruth Organization for the excellent
condition of the playing fields. Manager Myers also announced that City Clerk Becky
Upton, who recently celebrated 20 years with the City, will retire at the end of August.
Rob Tulloch, 829 E. 8th Street, spoke on behalf of Serenity House in support of the
Maloney Heights project. Many agencies are involved in the project, and Mr. Tulloch
indicated there will be a Resolution before the Council this evening increasing the City's
match for the CDBG grant. Mr. Tulloch requested the Council's support of the additional
funding, and he discussed the substantial benefit to the community when the project
comes to fruition, as it will be a long-term solution for adults and children who are
desperately in need.
Norma Turner, address not stated, spoke in support of the increased funding grant for the
Maloney Heights project, and she expressed thanks to the City Manager for establishing
a task force for long-term planning in the area of affordable housing. Ms. Turner
addressed the matter offunding for HarborWorks, noting that no where in the budget is
funding from Rayonier included. She indicated the Chair of the Elwha Tribe previously
asked about Rayonier, and Ms. Turner expressed hope an explanation would be
forthcoming on the assurance that no public funding would be directed to the project.
Shirley Nixon, P. O. Box 178, thanked the Council for its efforts to improve citizen
access to information, the City Clerk for public records placed on the web site, and the
City Manager for his weekly reports on the website. She discussed the State Auditor's
investigation of the HarborW orks Development Authority, indicating the resulting report
did not remove the cloud of doubt over the formation or legitimacy of HarborW orks, as
the Auditor didn't focus on the issues they raised when filing the complaint. Ms. Nixon
expressed the need to revisit past budget decisions related to expenditures for outside law
firms and the appropriateness of contracting for outside legal services. She indicated the
City paid $100,000 in one year for services related to the Rayonier site, and she is still
interested in an explanation as to why the payments are continuing. Ms. Nixon pulled a
copy of the Cascadia contract, noted a difference in the approved rates, and provided the
City Clerk with copies for dissemination to the Council.
Orville Campbell, 820 Milwaukee Drive, addressed the Council on behalf of the Feiro
Marine Life Center, indicating a proposed contract with the Marine Life Center is before
the Council this evening. Mr. Campbell thanked the City staff for its cooperation and
urged the Council to adopt the contract.
1.
Code Enforcement - Limited Notice of Infraction Authority:
Community & Economic Development Director West presented information relative to
the proposed notice of infraction authority for the City's Code Complia~ce Officer, who
will focus on efforts related to nuisance matters and on-going neighborhood parking
concerns, such as on-street use of parking for non-motorized uses, recreational vehicles,
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6476 CITY COUNCIL MEETING
July 7, 2009
Code Enforcement -
Limited Notice of
Infraction Authority
Resolution No. 14-09
(Cont'd)
CDBG Grant Match
Resolution No. 15-09
Housing Rehabilitation
Fund Obligation
Resolution No. 16-09
and abandoned cars. Director West distributed a Code Compliance Notice ofInfraction
Policy for the Council's review. Mayor Braun read the Resolution by title, entitled
RESOLUTION NO. 14-09
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A RESOLUTION of the City Council of the City of Port Angeles, Washington,
approving participation in the enforcement of parking restrictions by the
City's Code Compliance Officer, under the direction of the Director of the
Department of Community and Economic Development and the Chief of
Police.
Councilmember Rogers moved to pass the Resolution as read by title. The motion
was seconded by Councilmember Kidd and carried unanimously.
2.
CDBG Grant Match:
Director West reported that the Washington State Department of Community Trade &
Economic Development (CTED) is requesting that the City provide an additional match
prior to the successful award of the Maloney Heights Project Community Development
Block Grant (CDBG). The total match, provided by the City's Housing Rehabilitation
Project Fund, would result in a $250,000 contribution towards project infrastructure.
CTED advised the City it will look for reserve funds in support of the project. Mayor
Braun read the Resolution by title, entitled
RESOLUTION NO. 15-09
A RESOLUTION of the City Council ofthe City ofport Angeles, Washington,
regarding the Maloney Heights CDSG Project.
Councilmember Rogers moved to pass the Resolution as read by title. The motion
was seconded by Councilmember Perry. Following brief discussion, a vote was taken
on the motion, which carried unanimously.
3. Housing Rehabilitation Fund Obligation:
Director West reviewed the proposed Resolution that woulq obligate all remaining funds
in the City's Housing Rehabilitation Fund. The Washington State Department of
Community Trade and Economic Development has held that it considers the City's
Housing Rehabilitation Project Fund to be Community Development Block Grant project
income. The Federal Block Grant Policy requires that all program income be obligated
prior to awarding any additional grants. Director West itemized the City's current
funding obligations and reviewed the recommendation to allocate the remaining amount
for the 20 I 0 and 2011 annual emergency housing rehabilitation funds and a new facade
improvement program for commercial buildings. Information on the facade improvement
program will be presented at the next Council meeting.
Mayor Braun read the Resolution by title, entitled
RESOLUTION NO. 16-09
A RESOLUTION of the City Council of the City of Port Angeles, Washington,
directing creation and funding of a Facade Improvement Program for
Commercial Buildings, and obligating all remaining Housing Rehabilitation
Project Funds.
Deputy Mayor Wharton moved to pass the Resolution as read by title.
Councilmember Perry seconded the motion. Councilmember Di Guilio indicated he
would abstain from the vote, as he oversees some of the OlyCAP funds. Director West
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Housing Rehabilitation
Fund Obligation
Resolution No. 16-09
(Cont'd)
OTHER
CONSIDERATIONS:
Feiro Marine Life Center
Agreement
P ADA Main Street
Contract
Break
CITY COUNCIL
COMMITTEE
REPORTS:
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CITY COUNCIL MEETING 6477
July 7, 2009
responded to a question as to whether there is any flexibility on the allocation balances,
indicating he thought future changes could be made as long as the funds are obligated.
Discussion ensued on commercial building facades, and Director West indicated he
couldn't discuss specific properties, as an eligibility process must first be established. He
added the facade program is one ofthe AlA recommendations. A vote was taken on the
motion, which carried 6 - 0, with Councilmember Di Guilio abstaining from the
vote.
J.
Feiro Marine Life Center Agreement:
Manager Myers reported that, with the recent decision of Peninsula College to no longer
operate the Marine Life Center, the Center has organized as a non-profit in order to
continue operations. It has embarked on major fund-raising efforts over the past several
months and recently obtained a 3-year grant in partnership with the Olympic Park
Institute. The City Council previously approved funding in the amount of$22,500 for the
Feiro Marine Life Center in the budget, and the proposed agreement outlines a specific
scope of services that the Center will provide in return for 2009 City funding. Manager
Myers clarified that the Center will be responsible for paying for utilities, and Director
Cutler reviewed specific information on the cost of utilities.
Councilmember Rogers moved to approve the agreement with the Feiro Marine Life
Center for the provision of marine conservation and educational services.
Councilmember Perry seconded the motion, which carried 6 - 0, with Deputy Mayor
Wharton abstaining, as she is a Marine Life Center Board member.
2.
P ADA Main Street Contract:
Director West provided information relative to the temporary agreement with the Port
Angeles Downtown Association to enable the quarterly payment of2009 budgeted funds
in the amount of$20,000. He indicated the City and the P ADA continue to work towards
the renegotiation of various issues, but approval ofthe temporary agreement would enable
the continuation of the National Main Street Program and the employment of the
Downtown Association's Executive Director. This contract stipulates a deadline of
October 3 I, 2009, for negotiations so that changes can be incorporated into the 2010
budget. Lengthy discussion followed on the term of the temporary agreement and
whether it should be tied to the October 31 deadline for negotiations. Manager Myers
and Attorney Bloor provided clarification, noting it is planned that a new agreement will
be presented by October 31 st , but the services under this agreement are for the calendar
year. Discussion and debate followed, after which Councilmember Perry moved to
approve the temporary agreement, authorize the City Manager to sign the
agreement, and direct staff to continue negotiations per the temporary agreement.
Councilmember Di Guilio seconded the motion, which carried 5 - 2, with
Councilmembers Rogers and Williams voting in opposition.
Mayor Braun recessed the meeting for a break at 7:50 p.m. The meeting reconvened at
8:05 p.m.
Councilmember Rogers reported on her attendance at the A WC Annual Conference, her
role as A WC Past President, and the submission ofInitiative 1033 by sponsor Tim Eiman.
She noted that cities statewide plan to take an aggressive role regarding unfunded
mandates.
Councilmember Di Guilio provided a report on the William Shore Memorial Pool District
Board meeting, indicating the Board secured a line of credit, engaged counsel and an
accountant, contracted with the County for clerical services, and transferred the property.
He added that consideration will be given to adopting a uniform fee at the next meeting.
Councilmember Di Guilio felt the recent activities had been very positive.
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6478
CITY COUNCIL MEETING
July 7, 2009
CITY COUNCIL
COMMITTEE
REPORTS: (Cont'd)
WORK SESSION:
20 I 0 Budget Discussion
Mayor Braun attended the memorial service for former Firefighter Mike Wells.
Councilmember Williams indicated he would be out of town this coming Friday, and
would, therefore, be unable to attend the Chamber Board meeting. He asked Manager
Myers to attend in his stead, as discussion will be held on the Chamber again assuming
management of the Crab Fest.
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1.
2010 Budget Discussion:
Mayor Braun advised those present that this is a Work Session, and there will be no
public comment taken at this time. Any of the Council candidates who may have a
question should be in direct contact with staff. Manager Myers opened discussion on the
2010 Budget, indicating he hoped to involve the candidates in all discussions and work
sessions on the Budget. He referenced the Budget calendar and proposed a Town
Meeting to give the public the opportunity for input to the Budget. Finance Director
Ziomkowski indicated the Town Meeting is intended to receive public input on which
programs are important to the public, and perhaps a second Town Meeting could involve
the public's preferences between different projects. Discussion ensued on previous Town
Meetings held, the importance of not creating expectations that can't be met, and the
importance of identifying core services that must be funded. Consideration was given to
possible dates for a Town Meeting, and the date of Thursday , August 6,2009,6:00 - 8:00
p.m. was agreed upon by the Council.
Brief discussion centered around the current General Fund budget of $17.5 million, and
the discretionary powers of the Council in setting the budget. It was reiterated that core
services must be identified, as well as those services that are beyond what is necessary.
Director Ziornkowski used Power Point slides to explain a suggestion made by
Councilmember Williams for use in preparing the upcoming budget. Using the Finance
Department services as an example, Director Ziomkowski placed different services in a
grid that were segregated by mandatory versus non-essential and expensive versus
inexpensive. The intent of the grid was to determine which core services must be
maintained as opposed to those that could be discontinued. Director Ziomkowski
indicated that, if the Council wanted to pursue the concept, the grids should be completed
City wide. It was pointed out that, not only is it important to identify core services, but
a determination must be made as to how one service relates to another and whether
certain services could be outsourced. Discussion followed.
Director Ziomkowski then discussed the next step, that being the transition to budgeting
for outcomes. She indicated the City must identify and quantify programs, address
current and future spending, put a plan in place, and adhere to it. She noted that pressure
is on government to fund core services, and there is a need to know what results the
citizens want, how much money to allocate to each result, and how to best allocate and
spend funds to achieve the results. There must be an identification, prioritization, and
balancing of programs, and there is a need to balance the legislative body with the
community of residents and businesses, management and labor. Direct and indirect
expenses must be considered, and performance and effectiveness must be measured.
In the ensuing discussion, it was noted there are several threats to revenue. In addition,
the process used in preparing the 2009 budget was discussed, as staff and the Finance
Committee identified several functional areas in the General Fund that should be
considered yet again. It was suggested that the process may need to be revisited in terms
of what is mandatory, what is in the middle, and what is questionable in terms of what
might be cut. Manager Myers noted he has typically used staff to make several cuts to
get to an acceptable level before taking the budget to the Council. The Council agreed
that the better approach would be for the staff to bring suggested budget cuts to the
Council for consideration.
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LA TE ITEMS TO BE
PLACED ON THIS OR
e FUTURE AGENDAS:
ORDINANCES NOT
REQUIRING PUBLIC
HEARINGS:
Treatment Plant Operations
& Maintenance Fund
Reserves
PUBLIC HEARINGS -
QUASI-JUDICIAL:
PUBLIC HEARINGS -
OTHER:
" ',' .~. 1, ,
;:. _i . ,
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CONSENT AGENDA:
FINANCE:
Lease Proposal for lION,
Railroad A venue
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CITY COUNCIL MEETING 6479
July 7, 2009
None.
1. Treatment Plant Operations and Maintenance Fund Reserves:
This item was pulled from the agenda.
None.
None.
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~.
. Councilmember Di Guilio suggested that Finance Agenda Items K.l. and K.2. be moved
to the Consent Agenda. This was agreed to by consensus ofthe Council.
Councilmember Perry moved to accept the Consent Agenda, to include: 1.) City
Council Meeting Minutes oOune 16,2009; 2.) Expenditure Approval List from 6/6/2009
to 6/26/09 for $1,726,456.97; 3.) Olympic Discovery Trail Paving, Project No. TR 07-
07, Final Acceptance; 4.) Peabody and Fifth Streets Reconstruction, Project No. 06-06;
and 5.) Eastern Corridor Phase 2 (1 st Street Sidewalks), Project No. 06-21. The motion
was seconded by Councilmember Di Guilio. Manager Myers informed the Council
that, with regard to the Peabody and Fifth Streets Reconstruction Project, the City learned
there would be an extra $77,000 from the State for the project, which will offsetthe City's
contribution. A motion was taken on the motion, which carried unanimously.
3.
Lease Proposal for 110 N. Railroad Avenue:
Director West advised the Council that, on June 10'h, the City had solicited proposals for
the use of the City-owned Boardwalk Cafe building, formerly known as the Pancake
House, on the former Niichel property. The property had been declared surplus by the
City Council. The overall intent of the property was for redevelopment, and the issue of
leasing the property was considered thoroughly by the Real Estate Committee. It was
determined that demolition of the buildings would not be cost effective. Director West
indicated the City received three proposals for the lease of the building, which were
considered by the Real Estate Committee at a meeting held June 29, 2009, and the
Committee unanimously recommended the selection of the Art Studio and Gallery. He
added there was one previously not recognized item in that the facility didn't have a hook-
up for electrical power, as it was removed because of the Gateway project. That matter
will need to be remedied. Discussion ensued on costs associated with the interior and
exterior electrical installation, and Manager Myers indicated the proposed tenants agreed
to pay for the internal work.
Lengthy discussion also focused on the length of the proposed lease, which is set for a
period offive years. Director West responded to questions raised by the Council on such
matters as a 90-day break clause to be included in the lease, as well as previous intentions
to place a sign on the property indicating it is available for sale and development.
Councilmember Perry, a member of the Real Estate Committee, provided clarification on
the Committee's recommendation regarding the lease. Councilmember Perry moved
to accept the proposal for the Art Studio and Gallery, subject to successful
negotiations regarding utility connections; and authorize the City Manager to
complete negotiations and finalize the lease agreement with the proponents.
Councilmember Kidd seconded the motion.
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6480
CITY COUNCIL MEETING
July 7, 2009
INFORMA TION:
EXECUTIVE SESSION:
ADJOURNMENT:
Discussion and debate followed on the merits of leasing the building as opposed to
placing it on the market for sale. A vote was taken on the motion, which carried 6 -
1, with Councilmember Williams voting in opposition.
Manager Myers announced a meeting of July 8, 2009, at 5:30 p.m., at Charles Willson
Park regarding the conversion of the park to a dog park. He indicated the Council would
be receiving invitations to attend a celebration this weekend for the Community at Work
Project. Manager Myers advised the Council that the Gateway improvements are
complete, and financial reports and change orders will be presented at the next Council
meeting.
None.
The meeting was adjourned at 10: 14 p.m.
Id. ~ C6~ - "-
Gary Braun, yor
h~~.J.Jpmll
Becky 1. Up , Ci Clerk
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