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HomeMy WebLinkAboutMinutes 07/15/2003 4983 CITY COUNCIL MEETING Port Angeles, Washington July 15, 2003 CALL TO ORDER - Mayor Wiggins called the special meeting of the Port Angeles City Council to order SPECIAL MEETING: at 4:00 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, B. Collins, and G. Cutler. WORK SESSION: Watershed Plan: Community Development Director Collins, aided by PowerPoint slides, opened discussion on the Watershed Plan by briefly reviewing the four elements Watershed Plan of the Plan: water quantity, water quality, habitat, and instream flow. He also listed for the Council the initiating governments: Clallam County, City of Port Angeles, Lower Elwha Klallam Tribe, Jamestown S'Ktallam Tribe, and the Agnew Irrigation District. Director Collins indicated there is a final meeting on July 25 to present any vetoes from the initiating governments; therefore, any City of Port Angeles vetoes that are to be taken forward at that time should be agreed upon at this afternoon's meeting. Director Collins advised the Council that the Plan allows for future allocations of water for fish and for people. General discussion was conducted on the merits and the impacts of the Plan. Councilman Campbell clarified for the Council the fact that the Watershed Plan serves more as a comprehensive plan that was developed locally with contributions from a large number of people over time. He felt the City has successfully toned down the most objectionable portions in order to make the Plan less onerous than previously written. Responding to an inquiry from Councilman Headrick as to his comfort level with the Plan, Councilman Campbell reminded the Council there would be some benefits to the City with adoption of the Plan, a plan that has been mandated by the State but left to local participation in terms of writing the content. Mayor Wiggins asked how future changes and corrections could be made to the Plan, and Councilman Campbell was uncertain as to whether there were any such provisions incorporated in the Plan. He agreed that a mechanism for future review and modification would be essential. Councilman Braun questioned how future business growth would be accommodated, and Councilman Campbell indicated that the Plan would not threaten or take away the City's water rights. Attorney Knutson addressed the Council's questions and legal issues pertinent to the Plan, noting the watershed planning statute does not allow existing water rights to be placed in jeopardy. With regard to the regional water supply proposal, the City would be in the driver's seat, because the City would have the final say in determining how to allocate its water. Attorney Knutson stated that the legislation also provides that the watershed plan is to include an inventory of how much water is used and how it is used. It is important that the inventory in Chapter 2 be accurate. Under the statute, instream flow determinations are optional. However, if the plan does not include the instream flow option, then the Department of Ecology would determine instream flow levels. From Attorney Knutson's perspective, Chapter 3 has some issues the City may want to veto or modify. -1- 4984 CITY COUNCIL MEETING July 15, 2003 WORK SESSION: He felt the Watershed Plan is an effort to address water issues in a responsible fashion. (Cont'd) Director Collins then directed attention to water quantity issues, and Councilman Watershed Plan (Cont'd) Campbell addressed the fact that the City's water supply is protected. He also summarized issues pertaining to the City serving as the regional water supply, feeling that from a business perspective any business or industry that should come along will be state of the art in terms of water management. He stressed there are nominal caveats in the Plan that growth outside the UGA is not desirable. Councilman Campbell noted there are inconsistencies in the Plan in that the geographic areas in Chapter 3 are mixed; the boundaries need to be clear and consistent throughout. It is the City's recommendation that no water from the Elwha go east of Morse Creek, and Director Collins indicated the utility arrangement would be similar to the PUD in that eastern area. Discussion ensued concerning the use of Morse Creek as an emergency water supply, and Attorney Knutson indicated the City could use its water rights for that purpose. Councilman Headrick suggested that language to that extent be added to the Plan, and Director Collins agreed this should be discussed at the July 25th meeting. He shared a suggestion from Attorney Knutson that an addition be made to the Plan as to the City's willingness to provide water supply for expanded regional use, as it is important to be very clear that the City must make the decision on its water. Discussion then centered around instream flows, Page 3.4-2, and Director Collins indicated that Statement No. 6, having to do with the use of large water rights being checked and agreements explored to limit use through trust agreements and donations with willing sellers and donors, brings confusion into the document and should be vetoed. He felt that, when applied to regional water supply issues of the City, it could be used to bring into question why the City should maintain such a large water supply. Attorney Knutson suggested that, as opposed to a veto of the section, the language be changed to encourage the use of trust agreements and donations with willing sellers and donors. The first sentence in the section should be vetoed. Councilman Headrick referenced Page 3.1-1, protecting instream flows, where there appears to be a conflict with other sections of the Plan when considering minimum instream flows for fish. He noted that Section 3.4.A.4, addresses instream flows and there must be recognition of the need to restrict any further taking of water from the streams. Attorney Knutson suggested that language be added to 3.1-1 such that it must be consistent with 3.4.A.4. Discussion followed with Councilman Williams pointing out the references of one section to another, which then lead to a reference to yet another section. He expressed concern that, if one section is changed, there is a ripple effect throughout the entire document. He queried as to whether the Council would again be reviewing the entire document prior to approval. Director Collins indicated that, following the July 25 meeting, there will be another opportunity for public input. Attention was then directed to water quality which, Director Collins indicated, has a primary focus of stormwater management. There is a recognized need to get the jurisdictions to do more in the area of stormwater management, and the Plan creates a policy direction of support in that area. Director Collins noted that Chapter 3.5 contains references to the Puget Sound Water Quality Management Plan, which the City felt should be placed in the appendices. In addition, there is a reference on Page 3.5-8, having to do with the use of the flow frequency and duration curves predicted by a hydrological model, such as the Department of Ecology Stormwater Manual of Western Washington. The City has asked that this reference be deleted. Further, the City has asked for the deletion of language regarding flow fluctuations, as the City cannot realistically deal with that issue. Attorney Knutson indicated the reference to the Stormwater Manual actually supports low impact development standards because of the focus on fewer impervious surfaces. Councilman Campbell indicated that Page 3.5-8 also requires a comparison between pre and post hydraulic, and he was uncertain as to the impact on the City. He did, however, view that as an unfunded mandate. -2- CITY COUNCIL MEETING 4985 July 15, 2003 WORK SESSION: Director Collins addressed the matter of habitat in the Limiting Factors Analysis. (Cont'd) Language has been used several times in the document, which the City felt was inappropriate, having to do with identifying fish problems. However, there should be Watershed Plan (Cont'd) no endorsement of opposing the needs of the people. The City has endorsed the placement of the Limiting Factors in the appendices, as they constitute a study done by the State to identify the impediments to fish restoration at the expense of the human population. There is concern that many of the statements could be brought to bear for rip rap on the Waterfront Trail, and discussion ensued concerning the issue of protecting the Olympic Discovery Trail as opposed to fish restoration. Councilman Campbell indicated the City will veto the placement of the Limiting Factors in the Plan if it is unsuccessful in getting those sections moved to the appendices. Director Collins discussed rural versus urban streams, noting that clarification must be sought by virtue of the fact the Plan listed certain urban streams as rural. Ifa portion of a stream runs through an urban area, then it is considered to be an urban stream. To that end, there is a need for a glossary of terms, which was suggested by the Council at an earlier work session on the Watershed Plan. Director Collins reiterated that the City will be working to be certain the Morse Creek emergency water supply is protected. Discussion ensued concerning the need to address the instream flow for Morse Creek during a specific part of the fish life cycle. The Watershed Council could involve itself in this issue. Director Collins reiterated previous comments about the unfunded mandate for the Watershed Council. Concerning fish triggers on the Elwha, there are certain conservation stages that had been agreed upon during low flows. However, Director Cutler cautioned against any stipulations in the Plan that would serve in any capacity beyond a guideline. Councilman Campbell supported the development of the numbers on the fish triggers through consultation, based on credible elements. Absent that, the language should be eliminated. Discussion was also held concerning the unfunded mandates in the Plan, and the City has incorporated language that the City will seek funding. In addition, the City should not be viewed as responsible for providing funding for public outreach. Councilman Campbell felt that much of this language should be mitigated, unless it relates to something the City is already pursuing. Therefore, the word assure should be changed to seek as it relates to funding in the Plan. Director Collins provided closure to the work session, feeling that the Plan is reasonably accomplishing what was intended without any great conflict. He asked that any specific input be provided to him or Councilman Campbell for submission on July 25. Councilman Headrick expressed confidence in Councilman Campbell's contributions to the Plan on behalf of the City. ADJOURNMENT - The special meeting was adjourned at 5:45 p.m. SPECIAL MEETING: CALL TO ORDER - Mayor Wiggins called the regular meeting of the 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, B. Collins, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, and T. Smith. Public Present: T. Price, N. Quan, P. Lamoureux, and G. Munro. PLEDGE OF The Pledge of Allegiance to the Flag was led by Finance Director Ziomkowski. ALLEGIANCE: 4986 CITY COUNCIL MEETING July 15, 2003 PUBLIC CEREMONIES, 1. Quarterly Chamber of Commerce Report by Russ Veenema, Executive PRESENTATIONS AND Director: PROCLAMATIONS: Chamber of Commerce Executive Director, Russ Veenema, expressed appreciation to Chamber of Commerce the Council for the City's assistance during the 4th of July activities. Mr. Veenema Report provided an update of the survey being conducted of commercial businesses in the UGA, which is a joint effort between the Chamber of Commerce, the Clallam County EDC, the City, County, and PUD. Over the past month, the owners of property in the commercial UGA have been interviewed and, on Monday, he, Dan Engelbertson, and Jim Haguewood will be providing a summary of the surveys at the Chamber lunch. He invited all to attend to hear this report. On the matter of the Conference Center, Mr. Veenema advised the Council that the City is not alone in this fight, as the Chamber Executive Committee and Board discussed the issue, directing President Ray Graver to schedule a meeting with Tod McClaskey of the Best Western Hotel. Representing the business community, Mr. Gmver's intention is to urge Mr. McClaskey to let the project proceed and succeed or fail based on its own merit. Mr. Veenema then provided a report of TV and radio ads placed for the latter part of the summer and early fall. Ads promoting the Strait Thunder Hydro Race have also been placed. In addition, he discussed a Discover America program featuring the Peninsula, copies of which have been provided on CD and DVD for future use by the Chamber. Mr. Veenema distributed a statistical report, year to date, itemizing lodging tax revenues, sales tax revenues, occupancies, web hits, the Visitor Center door count, as well as brochure requests. Mr. Veenema felt this is a fragile tourism season, and he advised the Council that many facilities have discounted their rates in order to attract more business. Councilmember Rogers felt it would be interesting to see a graph showing the occupancy rate during special events held in the area. Brief discussion followed concerning various packages being put together for visitors. United Way Agency 2. United Way Agency Presentations: Presentations Patty Hannah, United Way Executive Director, P. O. Box 937, Port Angeles, advised the Council that this is the first time all of the funded agencies have come before the Council to report on how City funds were used. After distributing an informational sheet delineating the City's funding for 2003, she thanked the Council for its support and proceeded to the first presentation. Suzanne Little, Boys & Girls Club of the Olympic Peninsula, reported that the Mt. Angeles unit of the Boys & Girls Club is located in the public housing development with an annual membership of 200+ children from disadvantaged circumstances. Feeling that the unit changes and saves lives on a daily basis, Ms. Little indicated over 90% of the members receive scholarships to attend, and over 50% have one parent incarcerated or on court-ordered drug or alcohol treatment. The children, therefore, have a disproportionate number of challenges in their lives. The staff of the Boys & Girls Club attempts to establish a meaningful relationship with the children in order to provide a stable environment. These types of clubs are not designed to be fee supported and, with 80 children per day, City funding is extremely important for the continuation of the program. Unit Director Karla Abrams joined Ms. Little at the podium, informing the Council that most of the children make their way to the Mt. Angeles unit without parental involvement and, because of the importance of the Club to the children, they also bring siblings to the unit in order to be given a free dinner. Ms. Little then distributed printed information to the Council. Dan Maguire, Director of the YMCA, provided a chronological history of the Y since its founding in 1844 in London, England. Coming to the United States in 1851, it is the largest non-profit organization in the country. The Port Angeles Y was formed in -4- CITY COUNCIL MEETING 4987 July 15, 2003 United Way Agency 1848 and was originally located in what is now Bonnie's Bakery. It is now located on Presentations (Cont'd) Francis Street on hospital-donated property; the new building was constructed in 1988. A local Board determines the programs to be developed, with a focus on health and fitness, teams, youth recreation, and childcare. The success of the Y can be attributed to on-going changes, growth, and adaptation to new needs. Mr. Maguire summarized new programs to be instituted, such as expanded childcare and pre-school programs at Hamilton Elementary, the creation of a kindergym program for ages 1 - 6, the return of the Y Adventure Guides, the addition of expedition programs for high school age youth, as well as expanded art classes for all ages. Brief discussion followed on the amount of members, which Mr. Maguire indicated has been stable over the past year or two. Jody Moss, Youth Mediation Coordinator at the Peninsula Dispute Resolution Center, indicated that the City's funding has most recently been used for the Parent/Teen Mediation Program, where an adult mediator is paired with an equally trained teen mediator to help parents and teens work through conflicts involving a variety of issues ranging from household rules, family expectations, friends, money, work, car use, as well as drug and alcohol use. Ms. Moss reported that the mediation process sets the stage for the individuals involved to talk to each other with the hope of forging a mutually acceptable agreement on how they will operate within their family. Ms. Moss indicated that 17 teens have been trained as mediators with City funding, many of which have indicated it is the most powerful training experience they have ever undertaken. City funds have also been used to enhance parenting skills, to provide mediation support for at-risk individuals, to pay for staff support and for informational brochures. Lisa Lyon, speaking on behalf of Lutheran Community Services Parent Line, informed the Council of the program's commitment to serve local families who have been referred with a court-ordered supervised visitation in their parenting plan. These are often families concerned with safety and flight issues with their children, as well as drug, alcohol, and domestic violence related issues. Most of the families that have been seen meet low income guidelines, and City funds are used for scholarships directly to those families for the use of the service. To date, 65 hours of supervised visitation have been provided, with only four paid in full by the participants. Without this level of support, the families would have no alternative for supervised visitation, often resulting in not being able to visit with their children. Kathy Wahto, Serenity House Executive Director, provided information on efforts to meet the needs of the homeless. In that regard, the childcare center at the Evergreen Family Village is a program funded by the City, serving families that are in crisis and are homeless. Ms. Wahto stressed the importance of this service to the families as they strive to reach self-sufficiency, knowing their children are in a quality, therapeutic environment. The center is at capacity, serving as many as 60 families per year involving 80+ children. City funding helps provide meals, as well as a quality educational environment that will place them in good stead with the schools. Most of the families pay a nominal fee, with added federal and state funding for childcare that is accessed by virtue of the City's funding. Serenity House collaborates with almost all of the agencies represented this evening, and Ms. Wahto reported that many of the families are enrolled in other programs, showing an outcome of 60 - 75% of those being assisted improving in self-sufficiency, employment, and gaining permanent housing. In responding to an inquiry from Councilmember Rogers, Ms. Wahto indicated that a survey identified 200 homeless youth, plus there has been a 40% increase in demand for homeless services over the past six months. Discussion followed, with Ms. Wahto answering inquiries from the Council. Nita Quan, representing First Step Family Support Center, indicated the City's funds are used to operate the Drop in Center four afternoons a week from 1:00 - 4:00 p.m. This is a community center for the smaller children and their parents. The City funds -5- 4988 CITY COUNCIL MEETING July 15, 2003 United Way Agency' a staffperson to serve as host at the center, providing support for individuals who have Presentations (Cont'd) been isolated and depressed and who may be seeking services from one of the other agencies. From January - May of this year, there were 2,183 visits, which represent 1,022 adults and 1,161 kids, by low income families who know the center is a safe environment where they can find needed resources. The center also provides formula and diapers to assist families in the short term. Parent education classes are provided, as well as home visiting programs. John Vincent, Executive Director of Healthy Families, indicated that Healthy Families provides a wide range of services, which also include the Exchange Club Center for the Prevention of Child Abuse. Mr. Vincent read the Mission Statement, indicating that the agency is to empower Clallam County children, youth, adults, and families to achieve their potential, improve their behavioral health, and live free of violence and abuse. Healthy Families provides child abuse prevention and treatment services, including parenting classes, support groups, and educational clinics for divorcing parents and in-homeparent aides. Mr. Vincent indicated that City funds have provided some range to allow the continuation of services. Health Families has dropped the Family Development Center for lack of funds, and his employees have given up their health insurance in order to assure no further program cuts are made. This past year, 647 families were served, 800 adults and 1,128 children, with 2,094 visits and various groups held in schools and around town. Mr. Vincent thanked the City for its financial assistance. Don Zanon, Executive Director of the Peninsula Community Mental Health Center, indicated the Center has had a presence in the community since 1971 and is a licensed communitymental health center, as well as a certified substance abuse treatment center. Mr. Zanon provided scenarios where individuals have sought mental health services. He stated that mental health illness does not impact just an individual, but often an entire family and even an entire business. It can have a devastating effect on a person's ability to get along in the community. City funds have been used for the Respite Care program, which is oriented toward young children who are seriously and emotionally disturbed. On weekends, the families are provided a respite by having their emotionally disturbed children placed in a safe and supervised environment to learn social skills and have recreational therapy opportunities. The City has funded approximately one-half of the Respite Care program, and the Mental Health Center was able to provide a .match with Federal Title XIX funds in order to gain even more funding to operate the entire program. He expressed appreciation for the City's funding. The Center was also able to secure an anti-trust grant in order to extend the program into the summer months. On weekends, they assist 6 - 8 children and, during the week, they have about 50 children in a summer recreational program. The Center serves about 700 individuals throughout the month, 150 of which are children, with a multi-disciplinary staffof82. Mr. Zanon indicated that City funds allow the provision of other types of programs and services that the State would not otherwise fund. Cherie Sperr, Assistant Director of Family Planning of Clallam County, indicated the City's funds have supported youth education programs with the goal of improving the health and well-being of Port Angeles youth by reducing unintended pregnancies and risky behaviors. The objectives are to increase youth awareness of teen pregnancy prevention and risky behaviors, to increase the use of clinical services, to improve resiliency in decision-making skills, to boost self esteem, and to enhance communication, all in an effort to help the youth make good choices. City funding provides three different activities: support group sessions for at-risk adolescents, classroom education, and the Baby, Think It Over program. Ms. Sperr reviewed the attributes of the activities listed, noting the in-depth education and support provided to the at-riskyouth. Describing the Baby, Thinklt Over program, Ms. Sperr indicated this is an infant simulator program designed to teachthe harsh realities of teen parenting. Prevention efforts are important because babies bom to teen mothers are more likely to be born premature or underweight, and only 30% of all girls having babies go on to -6- CITY COUNCIL MEETING 4989 July 15, 2003 United Way Agency finish their education even by the age of 30. Children of teen parents are more likely Presentations (Cont'd) to perform poorly in school and are more likely to drop out completely. They are more likely to be bom into poverty, suffering abuse and neglect, as well as to be placed in foster care. They are more likely to be engaged in criminal activity. Daughters of mothers who gave birth as teens are more likely to have babies themselves as teenagers. Ms. Sperr reviewed the numbers of youth receiving services, indicating that in 2001, there were 76 births at Olympic Medical Center, many of which were from Port Angeles teens. Each one cost $11,525 for infant maternal care services, which equates to over $875,000 being paid. So, the City's funding makes a significant impact if even one teen pregnancy can be averted by the ability to provide fact-based, medically accurate information to the youth to help them make good decisions. Ms. Sperr thanked the City for its support and then responded to an inquiry from Mayor Wiggins by indicating the male educator program is still a part of the services offered throughout Clallam County. Further discussion ensued. Tim Hockett, Deputy Director of Olympic Community Action Programs, thanked the Council for its continuing support. City fundinghas been used to enhance the Meals on Wheels program to homebound elders, to provide day care for older adults with developmental disabilities or dementia, and to provide better access to health or dental care. Mr. Hockett reviewed the City's assistance in gaining CDBG grant funding for improving housing in the City with minor home repairs or housing rehabilitation services. He indicated that the need has not yet been met, as a waiting list for Meals on Wheels has been introduced for the first time during his tenure, and the adult day care hosted by Trinity Lutheran Church has had to raise the fees in an effort to assure continuity to a program that is funded locally. There is a growing demand for the Health Care Access Program, especially in the area of dental services. Mr. Hockett stressed the importance of the City's help in providing dental care to low-income individuals, and he saluted the Council for its decision to fluoridate the water in the interest of improving the dental health of all citizens. Mayor Wiggins thanked Patty Hannah and the agencies for the presentations this evening, noting there is a growing need for these types of funds. Ms. Hannah thanked the Council for the opportunity to share this important information. Break Mayor Wiggins recessed the meeting for a break at 7:15 p.m. The meeting reconvened at 7:30 p.m. Jerry Moore, Washington 3. Introduction of Jerry Moore, Washington State Department ofTransportation State Department of re. Graving Dock: Transportation Jerry Moore, Washington State Department of Transportation, 830 Durwhachter Road, informed the Council of where the term, graving dock, originated. He provided an update of the graving dock, which is part of the Hood Canal Bridge retrofit and replacement. The construction contract, awarded to Kiewit-General, will likely be fully executed by the end of July at which time the contractor can commence work. Councilman Williams asked Mr. Moore how the graving dock might be used during those periods when the DOT isn't building pontoons. There have been questions as to whether the floor is of sufficient strength to support ship building or ship repair that might be enticed into the area should that come to fruition. Is the size, height, and depth of the channel adequate? Is the opening at the gate adequate? Also, another question has arisen concerning pulling the pumps out when not in use. Mr. Moore indicated that the graving dock is being built for the sole purpose of building pontoons. There is a gap between the Hood Canal Bridge construction and the anticipated construction of the 520 pontoons when they need to be replaced. Mr. Moore indicated that how and if the facility is used between the two projects is pure speculation, as the DOT has not been informed what will happen. From the DOT's perspective, the graving dock will result in a significant savings in the construction of both bridges. 4990 CITY COUNCIL MEETING July 15, 2003 Jerry Moore, Washington Mr. Moore discussed in detail the structure of the facility, noting that the structural State Department of floor would need to be analyzed in terms of weight distribution to determine if any Transportation (Cont'd) other anticipated uses would be appropriate. The weight of the crane and the pontoons would be a consideration, as the floor is designed to handle a large structural load. In response to Councilman Williams, he indicated a set of plans could be made available to anyone interested in determining possible future uses. Mr. Moore summarized the size of the facility, with the outer dimensions being 905 x 460; however, there are two elevations, with the upper floor being 460 x 735 and the lower floor is 460 x 470, which is substantially wider than the gate opening which is 100 feet. The DOT has the tide level at 21 feet for floating out the anchors, which are the deepest draft objects to be floated out. Mr. Moore emphasized that the permits for operating the facility are for construction of the facility and for the operation of the pontoon construction only. If the facility were to be used for any other purpose, another party may be required to seek additional permits based on the projected use. Councilman Williams inquired as to the clearance between the upper floor level and the top of the super flood and the associated depth. Mr. Moore responded that the sheet pile retaining wall around the outside is 17' higher than the floor, so the design is for 16 feet of water. Mr. Moore agreed with Councilman Williams that, if someone were to bring in a vessel and super flood to float out on to the upper deck, there would be 16 or less feet of draft. Mayor Wiggins asked what the Washington ferry draft might be, and Mr. Moore was uncertain, but he indicated that John Callahan, who worked with ferry services, has indicated the ferries would be able to be put up there, if that were something to happen in the future. Mr. Moore further indicated that all of the State ferries would almost fit; however, he thought that it is 6" too short for the largest ferries to fit in the lower portion of the graving dock. Councilman Campbell asked where the dirt will be moved, and Mr. Moore stated there are two sites under consideration, one being the former Rayonier site and the other being the Shotwell area behind Eclipse. He indicated this is a decision of the contractor. Councilmember Rogers noted that various subcontractors are arriving in town, looking for office space. She felt it would be helpful to have a list of services available in the area for referral purposes for the subcontractors. Councilmember Rogers also suggested the possibility of a change order to correct the 6" deficiency before the project proceeds any further. Additionally, she suggested that the contractor be invited to a future Council meeting to discuss the project in view of the importance of the project to the community. Councilman Williams asked about the pumps, and Mr. Moore indicated the pumps will be owned by DOT. If and when the facility is leased out for someone else's use, the pumps are there and will be fully functional. Discussion followed about the need to keep the gate closed at those times when there is peak movement of the salmonoids in the area. There is a 2-month period when the gate must remain closed; however, Mr. Moore felt the DOT can manage the contract around that requirement. Mr. Moore reported that property negotiations are underway with the Port of Port Angeles; there is currently possession in use on the part of the DOT. Mayor Wiggins noted there are yet many unanswered questions, and there is ongoing concern about the future use or lack of use of the facility in years to come. Mr. Moore indicated that the Department of Transportation is very interested in the facility being used during the down time. Discussion followed, and Mr. Moore was thanked for his input. LATE ITEMS TO BE Mayor Wiggins added the appointment ora City representative to the Incubator Board PLACED ON THIS OR as Agenda Item I. 1. FUTURE AGENDAS: Paul Lamoureux, 602 Whidby, responded to an inquiry from Councilman Campbell at a recent Utility Advisory Committee meeting as to why water usage was down over the previous year. Mr. Lamoureux felt that fewer people are watering their lawns. Mr. -8- CITY COUNCIL MEETING 4991 July 15, 2003 LATE ITEMS TO BE Lamoureux, referencing the upcoming workshop on the solar heat rebate, again PLACED ON TI-IIS OR addressed his suggestion on circulating pumps. He distributed written information on FUTURE AGENDAS: the subject and suggested a pilot program to determine the level of savings. Mr. (Cont'd) Lamoureux reiterated past commentaries on fluoride, asking the Council to reconsider its decision. Additional Gateway Additional Gateway Project Financing: Mayor Wiggins asked that the matter of Project Financing Gateway financing be addressed during this portion of the meeting. Therefore, Manager Quinn distributed a memorandum he had prepared for the purpose of discussing how the revenue gap can be filled for the Gateway project. He has been invited to a Transit meeting on July 21st to further discuss the matter, as the question has been asked as to whether there is enough confidence that the project will be fully fmanced. Manager Quinn indicated that, in light of certain changes and additions relative to parking and to other expenses not supported by FTA/TIB funding, he would recommend that the waterfront promenade be deferred to 2005 for a savings of $250,000 and the Tidelands West parking deck be deferred to 2006 for a savings of $750,000. He felt the promenade could be supported by a property owner LID and/or a City CFP funding component. The issue of a parking deck delay could afford additional time for an analysis of supply and demand as it relates to the proposed conference center on Oak Street. Other parking components that have been proposed could be implemented, such as the on-street improvements to Cherry Street, the angled parking on Oak Street between Railroad and Front, and the parallel parking on Front Street west of Lincoln. Manager Quinn reviewed the known revenue for the project to date in the total amount of $7,890,000. The revenue gap and the bond fees equate to $2,725,000 to be financed, and the matter of how this revenue could be generated over a twenty year period must be addressed. Manager Quinn, therefore, projected revenues from various sources, to include: parking revenue from Gateway spaces amounting to $85,000 - $150,000; a PBIA increase available for the loan payment in the amount of $1,000 - $11,000; a parking tax that could raise $15,000 - $35,000; funding from Lodging Taxes in the amount of$10,000 - $40,000; a ferry ticket surcharge of from $0 - $68,000; and a variable amount of support fromthe City's General Fund. Manager Quinn discussed the merits of the proposed revenue sources, noting that the project cannot be completed without the financial involvement of all of the participants. Feeling the project should proceed as planned, Manager Quinn expressed confidence that the needed revenues will be generated. Discussion followed, and Councilmember Rogers referenced the Parking Ad Hoc Committee that was tasked with bringing all parties to consensus. The challenge at hand is to be certain all parties are still at the table as the project proceeds to funding. She, therefore, proposed that the Gateway Review Committee be disbanded and that the Parking Ad Hoc Committee constitute that dual purpose. The Gateway Review Committee was tasked with the important aspect of site selection and determining the direction of the project. Having accomplished those tasks, Councilmember Rogers felt this particular portion of the project is now the mission of all of the associations and entities who participated in the parking solution. It is important for the Gateway Review Committee to be in alignment with this direction and, if compromises are necessary, then it is important for all of the parties to be actively involved in the decision-making process. She advocated that the Parking Ad Hoc Committee work with the City Manager and staff to be certain there is a plan put in place in the same spirit of cooperation that was agreed upon early on in the project. Discussion followed, and Councilmember Rogers suggested that Councilman Williams, representing the Transit Board, could be assigned to the Ad Hoc Committee in order to assure that all entities are represented. Mayor Wiggins suggested this may need the approval of the other governing bodies who participated in the original agreement. Manager Quinn -9- 4992 CITY COUNCIL MEETING July 15, 2003 Additional Gateway agreed it would be appropriate for the other groups to agree to any change in the Project Financing (Cont'd) advisory structure. The three signatories to the agreement were the City, Transit, and the Downtown Association. Councilman Headrick noted that the genesis of the idea is funding, and the Parking Ad Hoc Committee is in a better position and more likely to be able to deal with those issues because parking is going to be the main revenue source. After further discussion, Councilmember Rogers moved to have the Parking Ad Hoe Committee be the committee that moves forward with the Gateway Project, both for design review and for the finance solution, subject to the approval of the participating agencies. The motion was seconded by Councilman Headriek and carried unanimously. Discussion followed on the financing solution, with Councilman Williams observing that based on all appearances, this would give everyone ownership. Ada Holzschuh, Executive Director, Port Angeles Downtown Association, 105 sA E. 1st, advised the Council that the matter just voted on by the Council will be taken to the Board of thc DowntownAssociation for consideration at its meeting this coming week. FINANCE: 1. Award Contract, Electric Oil Handling and Warehouse Building, Project 01- 21: Award Contract - Electric Oil Handling and Ware- Public Works & Utilities Director Cutler reviewed information pertinent to the bids house Building received for the Electric Oil Handling and Warehouse Building Project. Discussion was held specific to the engineering estimate for the project, with the Council noting how good the estimates havebeen of late. Councilman Campbell moved to award the contract for the base bid and alternate and authorize the Mayor to sign a contract in the amount of $127,676.00 with Bates Construction, Inc., of Port Angeles, Washington, for Electric Oil Handling and Warehouse Building, Project #01-21. The motion was seconded by Councilman Williams and carried unanimously. Rural Economic 2. Rural Economic Development Fund Transfer: Development Fund Transfer Director Cutler reviewed the recommendation to again transfer funds in the amount of $50,000 from the Electric Utility to the Electric Utility Rural Economic Development Revolving Fund. By contributing $50,000 to the fund, the Electric Utility can receive a $25,000 credit on excise taxes owed to the State. Director Cutler noted this practice has been followed for quite some time and has received the endorsement of the Utility Advisory Committee. Couneilmember Rogers moved to authorize the transfer of $50,000 from Electric Utility funds to the Electric Utility Rural Economic Development Revolving Fund for 2003. Councilman Williams seconded the motion, which carried unanimously. Bid Award - Waterfront 3. Bid Award: Waterfront Trail Fencing: Trail Fencing Parks & Recreation Director Connelly summarized the need to complete the boundary fencing for the Centennial Trail at the Four Seasons Ranch. Councilmember Rogers referenced the bids submitted, noting a bid difference between the out-of-area rum and the local firm is only $872.74. She emphasized the importance of the remm on dollars when local contracting is attainable, suggesting that Port Angeles institute what other cities have often done by charging a fee to conduct business in this community. Attorney Knutson responded he would be glad to discuss this with the other cities that have followed this practice, but he was unaware of any such legal authority that would give preference to local companies. Councilmember Rogers indicated that Ocean Shores has such a policy. Councilman Braun moved to award and authorize the Mayor to sign the contract for the Centennial Trail Boundary Fencing to Viking Fence Co., Inc., in the total bid amount of $21,281.21, which includes Washington State sales tax. The motion - 10- CITY COUNCIL MEETING 4993 July 15, 2003 Bid Award- Waterfront was seconded by Councilman Headrick. Mayor Wiggins noted that all of the Trail Fencing (Cont'd) property lines are inside this as an encroachment to the City property. Director Connelly responded this was a matter of discussion before the Real Estate Committee and, when the decision was reached, a letter was sent to the affected property owners notifying them that the placement of the boundary fence, in the City's opinion, does not effect the City's use of that property if necessary. Mayor Wiggins inquired as to the legal basis of that letter and whether it was recorded. Attorney Knutson indicated this issue was discussed with the Council in Executive Session; it can be revisited pertinent to the strength of the City's legal position on that issue. He continued this is something that would ultimately be decided by a court; the City could have taken a strong stand on the matter during negotiation, but the City Council determined it was not that much of a concern as the integrity of the trail would not be impacted. Councilman Williams asked if the letters would be recorded as a notice to title on the property owners, and Attorney Knutsonindicated this could be discussed. A vote was taken on the motion, which carried unanimously. Award Contract for Morse 4. Award Contract for Morse Creek Tailrace Barrier: Creek Tailrace Barrier Director Cutler briefly reviewed the requirement for a tailrace barrier to prevent fish from being attracted to or delayed in the area where water re-enters Morse Creek. This is being done as part of the reactivation of the Morse Creek Hydroelectric project. Councilman Campbell moved to award and authorize the Mayor to sign a contract with Aldergrove Construction in the amount of $20,648.89 for construction of a tailrace barrier fro the Morse Creek Hydroelectric project. The motion was seconded by Councilman Williams and carried unanimously. Brief discussion ensued, and Director Cutler indicated the construction should be complete by mid-August. Efforts are still moving forward with the State and Federal agencies on issues pertaining to the reactivation, with a target date of October 1. Amendment No. 2 to the 5. Amendment No. 2 to the Consultant Agreement with CH2M Hill Contract Consultant Agreement with (400-28: CH2M Hill, Contract #00- 28 Director Cutler provided information on the proposed amendment to the agreement with CH2M Hill for various water-relatedprojects. He outlined the scope of work and answered Council questions relative to how the budget is set for negotiated contracts. Fire ChiefMcKeen responded to a question pertinent to added fire flow, explaining that it may help the City achieve a lower level on the fire insurance rating. Following further discussion, Councilman Braun moved to authorize the Mayor to sign Amendment No. 2 to the Consultant Agreement with CH2M Hill in the amount of $211,654.00, for a total contract amount not to exceed $921,726.00. Councilman Williams seconded the motion, which carried unanimously. CONSENT AGENDA: Councilman Williams moved to accept the Consent Agenda, to include: 1.) City Council Minutes - Special Meeting of June 25, 2003; 2.) City Council Minutes of July 1, 2003; 3.) Expenditure Approval List - July 4, 2003 - $736,490.11; 4.) Electronic Payments - July 4, 2003 - $696,624.21; 5.) Out-of-State Travel Request for Engineering Manager; 6.) Out-of-State Travel Request for City Manager; and 7.) Set Public Hearing for Electricity Rate Adjustment for August 5, 2003 City Council meeting. The motion was seconded by Councilman Braun. Councilman Braun inquired as to an expenditure of $5,595 for steel plates for the Elwha Bridge. Director Cutler indicated the information would be forthcoming. Also, on Page 43, Paragraph 7, of the July 1 minutes, Mayor Wiggins noted thatpublic sector should be changed to read private sector. A vote was taken on the motion, which carried unanimously. CITY COUNCIL Councilmember Rogers indicated that Robert Thorns, a new legislative aide to Senator COMMITTEE Cantwell, has been invited to a future Council meeting. Councilmember Rogers asked REPORTS & that a letter of follow-up concerning the Highway 101 slide be sent to the Department CALENDAR: of Transportation; Mayor Wiggins indicated that such a letter has been mailed. -11- 4994 CITY COUNCIL MEETING July 15, 2003 CITY COUNCIL Councilmember Rogers reported that the building in which her offices are located is COMMITTEE now at 90% capacity with all new firms. Capacity Provisioning is expanding for the REPORTS & third time. A monthly BBQ will be held this Friday for all of the tenants. Efforts CALENDAR: (Cont'd) continue on the Clallam Networks project in conjunction with the Northwest Area Foundation grant and also with the extension of the contract with Frank Knott. Councilmember Rogers emceed the 4th of July parade. Councilman Braun attended the Outstanding Public Service award luncheon, a meeting on the Gateway, as well as a meeting to consider the merits of a new pool versus a renovated pool. ORDINANCES NOT Third Party Payer Billing for Ambulance Transports: REQUIRING PUBLIC HEARINGS: Introducing the third party payer billing proposal, Fire ChicfMcKeen felt this is a rare opportunity to generate additional revenue, as no new fees will be added and no taxes Third Party Payer Billing will be increased. In fact, the City's existing Medic I fee will be stabilized. He felt this for Ambulance Transports would be a win-win for the City and the citizens. Ordinance No. 3143 Break Mayor Wiggins recessed the meeting for a break at 9:20 p.m. The meeting reconvened at 9:30 p.m. Chief McKeen, using PowerPoint slides, made a presentation on third-party payer billing, a means by which the City cantake in additional revenues at a time when the economy is in decline, sales tax revenues are flat, property taxes are limited by voter initiative, and demands have increased for Fire Department services. He indicated that a founding principal of Medic 1 was that there be no out-of-pocket charges to City residents for pre-hospital emergency medical care and related ambulance transportation. However, many City residents are covered by third-party payers through governmental health plans and private insurance and, to not bill the third-party payers, the City is in effect subsidizing those programs. Past research has been conducted on the possibility of billing third-party payers; however, it was only in July of 2001 that the Office of the Inspector General issued an opinion allowing municipally owned and operated ambulance services to bill Medicare without collecting out-of-pocket co-pays or deductibles. The insured must be a resident of the municipality and pay taxes or must be an owner of a tax paying business within the municipality in order to meet the criteria of the Inspector General's opinion. Roger Zegers, President of Systems Design EMS Billing, Silverdale, addressed the Council on whether ambulance services will change the way they conduct business. He felt it would be unlikely, as revenues are budgeted to include revenue from insurance companies, as well as citizen deductibles and co-pays. If practices were to change, there would be a sudden decrease in revenue. In this instance, the City has been billing an extremely low rate and will now be billing a higher rate only to third-party payers. The City will, therefore, generate considerably more income. The question has been asked as to whether third-party billing from fire departments will ultimately drive up the cost of insurance rates. Mr. Zegers felt this would not occur, as the ambulance portion of medical insurance premiums is less than one-half of 1 percent. Mr. Zegers reviewed in depth the analysis conductedin order to project the potential revenue to the City, noting that new revenues from third-party billing are forecasted at $259,900. Chief McKeen showed graphs depicting the increased revenue to the General Fund, and he discussed a comparison with other area agencies. Councilmember Rogers reported that the Finance Committee, as well as the Public Safety Committee, reviewed this proposal prior to submission to the Council. After further discussion, Mayor Wiggins read the Ordinance by title, entitled - 12- CITY COUNCIL MEETING 4995 July 15, 2003 ORDINANCES NOT ORDINANCE NO. 3143 REQUIRING PUBLIC HEARINGS: AN ORDINANCE of the City of Port Angeles, Washington, amending (Cont'd) the Medic I ordinance to establish a third party payer billing system, consolidating Fire Department and Medic I fees, creating a new Medic Third Party Payer Billing I fund, and amending Ordinances 2274, 2932, and 2890, as amended, for Ambulance Transports and Chapters 8.36, 3.70, and 3.15 of the Port Angeles Municipal Code. Ordinance No. 3143 (Cont'd) Councilman Braun moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion, which carried unanimously. RESOLUTIONS: Resolution Setting Hearing Date for Consideration of Street Vacation Petitions - Blake Sand & Gravel and Ferrell Gas, portion of "A "Street and the 2/3 Alley: Setting Hearing Date for Street Vacation Petitions- Director Collins clarified that the hearing date for this street vacation petition is Blake Sand & Gravel and September 2, 2003. Mayor Wiggins read the Resolution by title, entitled Ferrell Gas Resolution No. 8-03 RESOLUTION NO. 8-03 A RESOLUTION of the City Council of the City of Port Angeles, Washington, setting a hearing date for a petition to vacate a portion of"A" Street and the 2/3 alley between Marine Drive and Tumwater Street. Councilman Campbell moved to pass the Resolution as read by title. The motion was seconded by Councilmember Rogers and carried unanimously. OTHER Appointment to Incubator Board: Councilman Campbell summarized a recent request CONSIDERATIONS: to the City for the appointment of a City representative to the Incubator Board of Directors. Harold Norlund, Resident Manager of Daishowa, was approached to fill this Appointment to Incubator position. He enthusiastically accepted the nomination. Councilmember Rogers Board moved to appoint Harold Norlund as the City representative to the Incubator Board of Director. Councilman Braun seconded the motion, which carried unanimously. PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - None. OTHER: INFORMATION: The matter of the Water Conservation Stage II implementation was called to the Council's attention, and Director Cutler informed the Council that notices will be mailed tomorrow, announcing the implementation of the plan on July 20, 2003. EXECUTIVE SESSION: The meeting adjourned to Executive Session at 9:55 p.m. to discuss litigation for 10 - 15 minutes. RETURN TO OPEN The meeting returned to Open Session at 10:15 p.m. SESSION: ADJOURNMENT: The meeting was adjourned at 10:15 p.m. .~ ....... "Glenn Wiggins, Mayor B~'~ky~J. l~I~Cif~lerk /-- -- - 13-