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HomeMy WebLinkAboutMinutes 07/16/1996 3319 CITY COUNCIL MEETING Port Angeles, Washington July 16, 1996 CALL TO ORDER - Mayor Ostrowski called the special meeting of the Port Angeles City Council to order at SPECIAL MEETING: 5:05 p.m. ROLL CALL: Members Present: Mayor Ostrowski, Councilmembers Braun, Campbell, Doyle, McKeown and Wiggins. Members Absent: Councilman Hulett. Staff Present: Manager Pomeranz, Attorney KnutS°n, Deputy Clerk Hagar, B. Becker, K. Godbey, S. Ilk, J. Pittis, B. Titus, D. Sawyer, S. Leaf, S. McLain, and B. Coons. Public Present: J. Moore. BPA Power Sales City Light Director Titus stated he wished to bring the Council up to date on the issues affecting utility operations locally, regionally, and nationally. He provided an overview of current events in the electric utility industry; specifically, deregulation and the changing power supply market. Director Titus discussed open transmission issues and retail wheeling (which entails purchasing power direct and bypassing the utility) and addressed current Bonneville Power Administration contract options available to the City. The City has currently agreed to an amendment to the existing power contract which guarantees City Light will buy 90% of its power from BPA over the next five years or pay an exit fee. An exit fee is a settlement to BPA to offset revenues lost when utilities buy elsewhere. A contract option which would reduce the 90% commitment figure to 85% is available, but is subject to terms that may not be favorable to the City. Director Titus went on to describe the dynamics of the power market, how it may change over the next several years, and how this may effect City Light's diversification plans. He also described several diversification options which City Light has examined with the help of the consulting finn Economic and Engineering Services. There are three specific options that City Light has examined, however, analysis indicates that exit fees are too high to justify power resource diversification beyond the 85% or 90% levels. Director Titus then outlined the outstanding issues which must be resolved before a new contract with BPA can be signed. The most significant issue is retail wheeling. He then described the key features of alternative power supply contracts, and informed the Council that based upon EES's analysis, the lowest bidder for non-BPA load is Louisville Gas and Electric. Director Titus ended his presentation by outlining various options for City Lights retail rates which will reflect the expected changes in power supply costs. ADJOURN SPECIAL The special meeting was adjourned at 6:53 p.m. MEETING: CALL TO ORDER - Mayor Ostrowski called the regular meeting of the Port Angeles City Council to order at REGULAR MEETING: 7:10 p.m. PLEDGE OF The Pledge of Allegiance to the Flag was led by Mayor Ostrowski. ALLEGIANCE: APPROVAL OF Councilman Braun moved to approve the minutes of the regular meeting of July 2, MINUTES: 1996. Councilman Doyle seconded the motion. Councilman Wiggins noted an error on page 7 of the minutes. The line "....Councilman Wiggins had also delivered...." should read ".....Councilman Campbell had also delivered ..... ' A vote was taken on the motion, which carried by a majority, with Councilmember McKeown abstaining due to her absence from the meeting. -1- 3320 CITY COUNCIL MEETING July 16, 1996 CEREMONIAL None. MATTERS/ PROCLAMATIONS: FINANCE: 1. Agreement with Clallam-Jefferson Community Action Council for Continuation of Housing Rehabilitation Grant Monitoring Housing Rehabilitation Grant Monitoring Mayor Ostrowski reviewed the information provided by the Department of Public Works. Councilmember McKeown moved to approve the contract with Clallam/Jefferson Community Action to assist the City in the implementation of Phase IH of the Port Angeles Housing Rehabilitation program for an amount not to exceed $104,000 for the two year term and authorize the Mayor to sign the contract. Councilman Campbell seconded the motion. After limited discussion, Attorney Knutson stated additional language was needed in the contract to assure no intermingling of funds, and asked for a modification to the motion to allow for housekeeping type changes. Mayor Ostrowski asked for a Vote on the amending language, which carried unanimously. A vote was then taken on the amended motion, which carried unanimously. Food Bank Pre-Design 2. Award Contract to Lindberg Architects for Pre-design of New Port Angeles Food Bank Mayor Ostrowski reviewed the information provided by the Department of Public Works. Councilman Campbell moved to award the request for proposal to IAndberg Architects and authorize the Public Works Department to negotiate an agreement for professional services not to exceed the grant amount of $21,875. Councilman Braun seconded the motion. Discussion followed, and Public. Works Director Pittis asked for the motion to be modified to authorize the Mayor to sign an agreement as developed by Public Works and the City Attorney. If the Council was not comfortable making this modification, thc item could be returned for authorization at a future meeting. Mayor Ostrowski asked for a vote on the amending language, which carried unanimously. A vote was then taken on the amended motion, which carried unanimously. Director Pittis thanked and praised Don Madison, City Light, for his help in this process. Police Station 3. Acceptance and Approval of Final Payment - Police Station Renovation Project Renovation Project Mayor Ostrowski reviewed the information provided by the Department of Public Works. Councilman Doyle moved to accept the project, authorizing the f'mal payment in the amount of $21,634.36, and authorize release of the total retainage in the amount of $19,125.85 upon receipt of clearances from the Department of Revenue and Labor and Industries. Councilmember McKeown seconded the motion. Public Works Director Pittis stated staff was pleased with the project management, quality of work provided, and cost control exhibited by Aldergrove Construction during this project. A vote was taken on the motion, which carried unanimously. CONSENT AGENDA: Councilman Wiggins moved to accept the Consent Agenda, including: 1) Progress payment g4 to Hisey Construction for Compost Facility Phase II; 2) Progress payment #1 to Lakeside for Vem Burton Memorial Community Center/City Hall parking lot; 3) Payroll - June 30, 1996 - $405,272.71; and 4) Voucher list - July 16, 1996 - $381,520.72. Councilman Campbell seconded the motion. After a brief discussion regarding paving of the City Hall/Vem Burton parking lot, a vote was taken on the motion, which carried unanimously. ITEMS FROM THE The following citizens requested to address Item D. 2. Options for interest earnings on AUDIENCE/COUNCIL/ bonded capital projects: Larry Schueler, Ray Weinmann, Jerry Moore, and Eleanor Sam:. STAFF TO BE CONSIDERED OR Councilman Wiggins asked to report on his Nanaimo Trip, this was added as D. 6. PLACED ON A Councilman McKcown asked to report on thc Morse Creek Urban Wildlife Project, which FUTURE AGENDA: was added as item D. 7. Councilman Braun asked to add Item D. 8. traffic flow into town. City Manager Pomeranz added Item D. 9., North Olympic Cities Association. -2- 3321 CITYCOUNCILMEETING July 16, 1996 PUBLIC HEARINGS: 1. Street Vacation Petition - STV 96(06)03 - HANNAM, Portion of the Hancoclo/Fogarty Alley: Request for vacation of a portion of the Street Vacation - Harmam Hancock/Fogarty alley west of Cherry Street, Ordinance No. 2923 Mayor Ostrowski reviewed the information provided by the Planning Department and requested Senior Planner Sawyer to clarify the issue for the Council. Mr. Sawyer explained that there are certain streets which have been vacated by statute. This process will give ownership of the vacated property back to the adjoining property owners. Mr. Sawyer used the overhead projector to demonstrate the property to be vacated, and informed the Council that an additional Finding should be added which reflects the Planning Commission's action reeonunendmg approval. Mayor Ostrowski opened the public hearing at 7:35 p.m. There was no public testimony, and the public hearing was closed. Mayor Ostrowski read the Ordinance by title entitled, ORDINANCE NO. 2923 AN ORDINANCE of the City of Port Angeles vacating that portion of the Hancock/Fogarty alley abutting Lots 3 and 4, Block 23, Fogarty and Dolan's Addition to the Townsite of Port Angeles, Washington. Councilmember McKeown moved to adopt the Ordinance as read by title, citing Findings 1 - 14, and Conclusions A - D, as set forth in Exhibit "A' which is attached to and becomes a part of these minntes. Colmcilman Campbell seconded the motion. At Council's request, Attorney Knutson explained vacations by statute. A vote was taken on the motion, which carried unanimously. LEGISLATION: A. Ordinances not Requiring Public Hearings City Light Rate Ordinance No. 2924 1. Amendment to Ci(y Light Rate Ordinance 2173 Mayor Ostrowski reviewed the information provided by the Light Department and read the Ordinance by title, entitled ORDINANCE NO. 2924 AN ORDINANCE of the City of Port Angeles, Washington, providing for special "pass through" power rates fi-om the Bonneville Power Administration for industrial customers and amending Ordinance 2173 as amended and Chapter 13.12 of the Port Angeles Municipal Code. Councilman Braun moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion. Atter limited discussion/a vote was taken on the motion, which carried unanimously. B. Resolutions not Requiring Public Hearings None. C. Planning Commission Minutes/Action Items None. Purchase of D. Other Considerations Liability Insurance 1. Purchase of Liability Insurance Through WCIA for 1997 Mayor Ostrowski reviewed the information provided by Human Resources. Bob Coons, Human Resources Manager, stated that the City of Port Angeles is the only large deductible City covered by WCIA. There has been an increase in the number of claims per year, and broken watermains have led to large claims on several occasions. Discussion followed, and Council asked if there were other carriers which might have lower premiums. Manager Pomeranz explained that the City had gone out to bid for this insurance several years ago, and had gone with WCIA. Mr. Coons stated WCIA had the best options at that time, and they are an exceptionally well nm organization. As the current policy does not expire until the end of the year, it was the general consensus of the Council that staff look into other insurance options and bring this information back to a future meeting. -3- 3322 CITY COUNCIL MEETING Ju~ 16,1996 Interest Earnings on Bonded 2. Options for Interest Earnings on Bonded Capital Projects Capital Improvements Mayor Ostrowski reviewed the information provided by the Finance and Public Works Depart~nents, and pointed out that there are still outstanding legal obligations regarding the Senior Center, therefore, no decision will be made this evening regarding interest income from that project. Mayor Ostrowski then asked Finance Director Godbey to explain the options available for consideration. Director Godbey stated the article in today's newspaper regarding surplus bond funds contained several errors. She then specified the errors and corrected them. Director Godbey reviewed the options available for the interest income and responded to questions directed by the Council. Public Works Director Pittis distributed copies of a library cost summary and stated staff was primarily concerned with library bond interest income because decisions must be made regarding funds available for library construction. Director Pittis explained the difference between this smnmary and the original estimate, reviewed the options available to keep the library construction within budget, and responded to questions posed by the Council. Ray Weinmann, 438 Whidby, Vice President of Port Angeles Friends of the Library, read a prepared statement requesting the interest income be used to additional construction costs. Larry Schueler, 135 Oakcrest, member of the Library Steering Committee, read a prepared statement supporting the use of interest income for library construction. Jerry Moore, 830 Dun-wachter Road, representative of the Port Angeles Junior Soccer Club, asked the Council to consider using the excess funds to for capital projects such as a soccer field, which would help meet the needs of the community's youth. Mr. Moore stated that matching fund grant money is becoming available for developing soccer and play fields. Elinor Saar, 1432 West 1 lth Street, complained of problems at the Senior Center. She claims there is hot water running into the toilets, and the heating system is inadequate. She felt excess Senior Center funds and library funds should not be put towards a golf course, but used for projects to benefit the youth of the community. Ms. Saar informed the Council that the problems at the Senior Center have been reported to staff on numerous occasions, however, nothing has been accomplished yet. She also objected to the Senior Center being rented out to non-seniors and felt the building was poorly designed. She invited the Council to tour the Senior Center and see the problems for themselves. Mayor Ostrowski explained that the City had received a grant with a proviso that the building be a Senior Services and Community Center which is why the building is rented for non-senior events. Manager Pomeranz pointed out that there were excess funds from the building of the Senior Center because the City had been so prudent in the planning and building of this facility. He felt bringing the project in on budget was quite an accomplishment. Mayor Ostrowski reminded the Council that on September 6, 1994, a motion was passed which stated "in the event the Library Bond passes, and if there are excess funds after the new library has been completed, that these funds be used to pay off the bond." The motion was then amended to state "to pay offthe bond or reduce taxes". This motion was passed unanimously. He pointed out that there are two new Council members, and asked the Council for cormnent on the issue. Lengthy discussion followed, and each Councilmember gave their feelings and opinion on the issue. Councilman Braun felt the money should be returned to the taxpayers. Councilman Doyle stated that although there were many worthwhile capital projects which needed funding, the people of Port Angeles had only committed to $3.6 million, and the balance should be returned to the public. Councilmember McKeown felt that the changes to the library design were requested by the citizens, therefore, the interest income should be used for library construction. Councilman Campbell felt the Council had made a commitment of $3.6 million and the excess should be returned to the voters. At Council's request, Attorney .Knutso~ and Finagce Director Godbey clarified the Councilman Wiggins moved to authoriz~ for use of library construction the original $3.6 million, and excess funds beyond this amount be returned to the taxpayers, per option one oftbe memo. Counciimember McKeown seconded the motion. After brief discussion, a vote was taken on the motion, which carried unanimously. _4¸- 3323 CITYCOUNCILMEETING July 16, 1996 Amendatory Agreement to 3. Amendatory Agreement # 7 to BPA Power Sales Contract BPA Power Sales Contact Mayor Ostrowski reviewed the information provided by the Light Department. Councilman Doyle moved to authorize the City Light Director to sign and validate Amendatory Agreement #7 between the BPA and City of Port Angeles. Councilman Braun seconded the motion, which carried unanimously. Power Sales Agreement 4. Power Sales Agreement with BPA and Rayonier Mayor Ostrowski reviewed the information provided by the Light Department. Coundlman Campbell moved to authorize the City Light Director to enter into an agreement with the Bonneville Power Administration for a surplus firm energy sale and with Rayonier Inc. for a retail power sales agreement. Councilman Wiggins seconded the motion, which carried unanimously. Letter of Support for 5. Re-authorization Support Letter Requested from Peninsula College of Workforce Employment Worlcforce Employment and Training Act (ESHB 1988) and Training Act Mayor Ostrowski reviewed the letter received from Peninsula College. Councilman Wiggins moved to send a letter supporting the re-authorization of the Workforce Employment and Training Art. Couneiiman Braun seconded the motion, which carried unanimously. Nanaimo Trip 6. RePort on Nanaimo Trip CouncilmansWiggins reported that Nanaimo was in a similar position as Port Angeles in regards to its waterfront, and have gone to great lengths to improve it. Nanaimo now resembles Victoria B.C. and is a lovely place. The Nanaimo project proves that cooperation and coordination between government agencies and downtown businesses can accomplish great things. Manager Pomeranz stated Nanaimo did an outstanding job in redeveloping their waterfront and downtown area. The City of Port Angeles must continue to work closely with the downtown associations and merchants in order to help one another achieve great things downtown. Morse Creek Urban 7. Morse Creek Urban Wildlife Project Wildlife Project Councilmember McKeown distributed copies of a letter fi.om Anita McMillan of the Washington Department of Fish and Wildlife (WDFW) regarding the proposed Morse Creek Urban Wildlife Project. The State is interested in acquiring property fi.om George Rains which would compliment the Waterfront and Discovery Trails. Ms. McMillan understood that the WDFW would pay property tax, therefore, the community would not lose the tax base on this property. A letter of support of this project is requested of the Council. Counciimember McKeown moved to send a letter supporting the Morse Creek Urban Wildlife Project. Councilman Campbell seconded the motion. Discussion followed and Councilman Wiggins expressed concern over loss to the tax base, as he understood government entities did not pay property taxes. Finance Director Godbey will research whether or not the WDFW would be obligated for property taxes. Councilman Wiggins asked that the motion be amended to state support of the project providing there is no loss of tax base. Mayor Ostrowski asked for a vote on the amending language, which carried unanimously. A vote was then taken on the amended motion, which carried unanimously. Traffic Flow 8. Traffic Flow Problem Councilman Braun stated that he was returning from Sequim on Monday, when he encountered an accident which took place in front of the Portside Inn and traffic was backed up to Monroe Road. The Police were doing a fine job, however, it took quite a long time to clear up the traffic tangle. Councilman Braun reminded the Council not to lose site of the need for an alternate route. He understood that this would be a very expensive project, however, a cross-town route is a necessity. Public Works Director Pittis stated the transportation plan will be coming before Council within the next several months. -5- 3324 CITY COUNCIL MEETING July 16, 1996 North Olympic 9. North Olympic Peninsula Cities Association Cities Association Manager Pomeranz stated he and Mayor Ostrowski had been working with the City of Sequim on a variety of issues. Staff felt it would be beneficial if the cities and county met on a frequent basis to discuss various issues of intergovernmental relations. The formation of an informal regional group was discussed. This would be composed of the Cities of Port Angeles, Forks, and Sequim. It was suggested that the group meet on a quarterly basis in one of the three cities. Manager Pomeranz explained what types of programs and discussions would be held during these meetings, and explained the group would be composed of the Mayor and one Councilmember and the chief administrative officer from each City. Councilman Campbell stated this was a great idea andvolunteered to be the Council's representative. ADJOURNMENT: The meeting was adjourned at 9:10t~l~"'---~~ -6- 3325 Exhibit "A" FINDINGS AND CONCLUSIONS FOR APPROVAL OF STREET VACATION - STV 96(06)03 - HANNAM, Portion of the Hancock/Fogarty alley · Findings: 1. A valid petition, included as Attachment "A" of the June 12, 1996, Planning Department Staff Report for STV 96(06)03, was submitted on May 15, 1996, for vacation of City right-of-way. " 2. The petition requests vacation of that portion of the Hancock/Fogarty alley abutting Lots 1-14 and Lots 15-24 of Block 23, Fogarty and Dolan's Addition to the Townsite of Port Angeles (TPA) not previously vacated. 3. Lots 6 - 13 and 16 - 20, Block 23, Fogarty and Dolan's Addition, TPA, except those portions located within an environmentally sensitive area (ESA) or buffer were previously vacated by City Ordinance 2844, on January 22, 1995. 4. An environmentally sensitive areas survey was submitted and placed on file on March 9, 1995, defining a geological hazard area and its buffer as being located in Block 23, Fogarty and Dolan's Addition. The geological hazard area and a portion of its buffer is also located on Lots 3, 4, 5, 6, 20, 21 and 22, Block 23, Fogarty and Dolan's Addition. 5. Section 15.20.070 (C)(4)(a) (Geological Hazard Areas) of the Port Angeles Municipal Code allows for a reduction of the required 50-foot buffer area if a geotechnical study is provided by an engineer that attests to the stability of the bank or slope area for a proposed use. 6. Street vacations are categorically exempt from the State's Environmental Policy Act (SEPA) requirements per Section 197-11-800(2)(h) of the Washington Administrative Code. 7. The subject right-of-way and adjacent properties are designated Low Density Residential by the City's Comprehensive Plan and are zoned RS-7, Residential Single Family. 8. City electrical facilities are located in the subject fight-of-way adjacent to Lot 23 in the requested vacation area. 9. The Public Works Department's comments are included as Attachment "B" of the June 12, 1996, Planning Department Staff Report for STV 96(06)03, and state no objection to the vacation as requested. 10. The City Light Department's comments of June 3, 1996, recommending that the ~ alley not be vacated are included as Attachment" C" of the June 12, 1996, Planning Department Staff'Report for STV 96(06)03. An amended memorandum 3326 indicating no objection to vacation of that portion of the alley abutting Lots 3, 4, 21, and 22, Block 23, Fogarty and Dolan's Addition is on file with the City's Planning Department. 11. The area of the proposed vacation currently serves as the main vehicular access to Lots 3 and 4 due to the topography of Lots 3 and 4, and secondary access to Lots 1, 2, 21, 22, 23, and 24, all in Block 23 Fogarty and Dolan's Addition to the Townsite of Port Angeles. Secondary access to Lots 3 and 4 is from undeveloped Hancock Street. 12. On June 20, 1996, the Planning Department was informed that the main reason for submittal of the vacation petition was to obtain use of that portion of the alley abutting Lots 3 and 4, Block 23, Fogarty and Dolan's Addition. The remaining neighbors/petitioners have no desire to obtain the right-of-way for their own use but joined in the action to enable a neighbor (Mrs. Hannam) to obtain right-of-way abandonment to construct a garage. 13. Vacation of the subject right-of-way will result in an increase to the taxable area of Lots 3 and 4, Block 23, Fogarty and Dolan's Addition to Port Angeles.. 14. Following a public hearing conducted on June 26, 1996, the Planning Commission recommended approval of vacation of that portion of the Hancock/Fogarty alley abutting Lots 3 and 4, Block 23, Fogarty and Dolan's Addition to Port Angeles. Conclusions: A. As conditioned, the proposed vacation is consistent with the City's Comprehensive Plan Land Use Policy B, 2 and 3 and Transportation Policy B, 18. B. As approved, the right-of-way is not needed for future street access and does not block access to the City's electrical facilities located in the alley. C. As approved, vacation of the subject right-of-way is in the public interest. D. As conditioned, the vacation is in compliance with Section 15.20 (Environmentally Sensitive Areas Ordinance) of the City's Environmentally Sensitive Areas Ordinance. dor)ted by the Port Angeles City Council at its meeting of July 16, 1996. l~OSl~r Ostrowski, Mayor Ca'--rol A. Haga~r, Deputy