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HomeMy WebLinkAboutMinutes 08/04/2009 e CALL TO ORDER - SPECIAL MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: PUBLIC CEREMONIES/ PRESENTATIONS & EMPLOYEE RECOGNITIONS: Olympic Peninsula Senior Games Week Port Angeles Chamber of Commerce Update Distinguished Budget Presentation A ward e PUBLIC COMMENT: 6489 CITY COUNCIL MEETING Port Angeles, Washington August 4, 2009 Mayor Braun called the special meetingofthe Port Angeles City Council to order at 5 :30 p.m. Members Present: Members Absent: Staff Present: . Public Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams. None. Manager Myers, Senior Assistant Attorney Dickson, Clerk Upton, T. Gallagher, D. McKeen, N. West, Y. Ziomkowski, 1. Hurd, S. Sperr, D BelIamente, B. Horton, T. Pierce, K. Emery, and R. Bonine. M. Boulter, D. Schanfald, B. Nelson, V. Sanstrom, P. Downie, M. Harbaugh, G. Shield, C. Blevins. All others present in the audience failed to sign the roster. The Pledge of Allegiance to the Flag was led by Mayor Braun. I. Olympic Peninsula Senior Games Week: Mayor Braun read a proclamation recognizing the Olympic Peninsula Senior Games, August 28 - 30, 2009. The proclamation was accepted by Senior Center Manager Bellamente, who was joined by members of the Senior Games Steering Committee. 2. Port Angeles Chamber of Commerce Update: 3. This item was deferred to a future meeting. Distinguished Budget Presentation Award: Manager Myers presented Finance Director Ziomkowski the Government Finance Officers Association Distinguished Budget Presentation A ward, after which Director Ziomkowski introduced Finance staff members Rebecca Horton, Janessa Hurd, and Kathy Emery. Manager Myers then recognized Director Ziomkowski for receiving her nineteenth designation from the Association of Public Treasurers as a Certified Public Finance Administrator. Manager Myers also recognized Senior Accountants Rebecca Horton and Sherry Wright for receiving their second such designations as Certified PubliC Finance Administrators. Dr. William Kildall, 533 E. Vashon, a retired educator and member of the 24th District Democratic Central Committee and the Sierra Club, thought the Council was discussing the cleanup of the Rayonier site this evening. He expressed his concern, as well as that of Sierra Club members, that taxpayers must pay for the cleanup of the site. Dr. Kildall - 1 - 6490 CITY COUNCIL MEETING August 4, 2009 PUBLIC COMMENT: (Cont'd) also expressed concern with the creation of a public corporation or entity who will then turn around and clean up the mess. He asked the Council to redirect its efforts and have Rayonier take on its responsibility for endangering the environment and the people who reside in the community. e Mary-Alice Boulter, 602 S. B Street, addressed the issue of funding the cleanup of the Rayonier site and the use of public funds to do so. Ms. Boulter read a prepared statement to the Council, opposing the use of public funds and the creation of the HarborWorks Development Authority. Darlene Schanfald, P. O. Box 2664, Sequim, referenced public notices published by the City, asking that more information be included. She addressed the Net Metering Ordinance, feeling it is not housekeeping in nature. She provided suggestions relative to specific language in the Ordinance and encouraged public discussion of the Ordinance before adoption. Ms. Schanfald also discussed the proposed loan to the HarborWorks Development Authority. She noted that between FEMA and the City, $3 million is being spent to repair storm damage to the Trail. There will be more changing and severe climatic conditions, and it is known that buildings must be further back from the shoreline. Continued use of the Rayonier property with development and infrastructure will pollute the habitat, which is not wiser and safer. Marilyn Harbaugh, 312 W. 5th Street, addressed the concept of using the tank for the CSO commitment to satisfY the Clean Water Act. She noted there are many cities who have the same obligation, but it seems shortsighted to use the tank at the Rayonier site just because it's there and just because it can be purchased less expensively than another alternative. Ms. Harbaugh felt that, if the City pursues this approach, then the future use of the property will be limited. She felt the property should remain as open space, and she felt it shortsighted to fund the cleanup of the property as well. Mayor Braun welcomed Mayor Dubois from the City of Sequim. Norma Turner, address not stated, read a statement to the Council regarding the loan request from HarborWorks. She felt such a loan would be outside the norm for what cities and counties do, and it violates City Ordinance 3333, the PDA By-Laws, and the Charter. Ms. Turner noted the Port had set aside only $200,000, and that Mr. Lincoln had said the PDA would work within whatever financial constraints, so she was unsure why the City would still consider a $500,000 loan. Ms. Turner discussed the PDA budget process, as well as prior comments from City staff that nothing would financially bind the City with regard to the PDA. She felt the community vision term should be put to rest since the public has had no input. Also, she noted that Lee Thomas made it very clear that Rayonier has no intention of developing the property, and ifthe private owner isn't willing to develop, then the PDA should go to the private market place to see if they concur. Manager Myers clarified there is nothing on this evening's agenda regarding HarborW orks; it will likely be on the next Council agenda. Regarding the comment about the Port, he indicated the Port is scheduled to consider PDA funding next Monday, and the amount of$500,000 is being considered. Regarding the comment that the PDA was intended to be self-supporting, he has found no documentation that it was so intended.. Also, reference was made that the funding request refers to cleanup. The request before the Council is dedicated only to the due diligence phase on planning and marketing to see if the site can be cleaned up and developed. Manager Myers added that the funding comes from the. Economic Development Fund, which comes from the settlement with the State. e - 2 - WORK SESSION: e 2010 Budget Preparations/ 2009 Mid-Year Report Break PUBLIC HEARINGS - QUASI-JUDICIAL: Hankins Rezone Ordinance No. 3369 e CITY COUNCIL MEETING 6491 August 4, 2009 1. 2010 Budget Preparations /2009 Mid-Year Report: Finance Director Ziomkowski used PowerPoint slides to present information on the financial status of year-end 2008, the 2009 mid-year financial position, the challenges facing the City in the second half of 2009, and building the City's 2010 budget. She reiterated past explanations that the City is a municipal corporation with multiple independent companies accounted for in different funds. All work is under the umbrella of the City, but one fund cannot benefit from another unless specifically permitted by State law. Director Ziomkowski indicated that for the 2008 City-wide budget, over $6 million was not spent, but the majority is related to capital projects that were deferred to future years. Over $800,000 was saved in the General Fund and Streets. Director Ziomkowski then reviewed the 2009 budget, year to date, indicating 60% of the budget is utilities. The General Fund is lagging behind with only 49.4% ofrevenues collected through June. Historically, the City would have collected 51 - 52% of revenues through the first half of the year. Director Ziomkowski indicated sales tax revenue is down 17% from the same period in 2008, and she indicated the possibility of a reduction in the 2009 year end sales tax projection by $150,000 at $2.75 million. She estimated ending 2009 with a 13.5% reduction in sales tax revenue from 2008, which is a loss of$430,000 in the General Fund from last year. Director Ziomkowski discussed current challenges in the area of sales tax, such as the public's diminished spending power, the recession, increased unemployment, declining consumer confidence, and business closures. In reviewing the second half of2009, Director Ziomkowski estimated revenues will be under budget by $240,000, but at the same time, expenses should be under budget by approximately $90,000 because of vacant positions. The result will be a General Fund shortage of approximately $150,000 if the City will not take any other measures by the year end. Any shortages will need to be covered by the reserves. She delineated various efforts taken to reduce expenditures in that the length of employment and salaries for seasonal workers was decreased, the hiring process has been postponed and carefully evaluated, there is tight control over purchases, and capital projects are carefully evaluated. Director Ziomkowski discussed the challenges before the City in preparing the 2010 Budget, as the City has lost approximately $2 million in ongoing revenue over the past ten years. At the same time, the City has absorbed additional charges, services, and mandates of over $1 million. Adding to the challenges is Initiative 1033, which will be placed on the ballot in November. Director Ziomkowski shared information related to the potential impacts ofInitiative 1033, and Manager Myers informed the Council that staff will be prepared with information on 1-1033 for the public at Thursday's Town Meeting. Discussion followed. Mayor Braun recessed the meeting for a break at 7: 13 p.m. The meeting reconvened at 7:25 p.m. 1. Hankins Rezone: Director West summarized information pertinent to the proposed rezone of Lots 11 and 12, Block 239, and Lots 9 and 10, Block 260, located at 8th & B Street, from Residential Single Family (RS-7) to Commercial Office (CO). The Planning Commission recommended approval. With regard to appearance of fairness issues, Councilmember Rogers related that her husband is a realtor with no interest in the property, and Councilmember Williams disclosed he is a real estate agent, has no interest in the area, but is a resident in the vicinity. Mayor Braun continued the public hearing at 7:27 p.m. There being no public testimony, the public hearing was closed at 7:27 p.m. Mayor Braun conducted a second reading of the Ordinance by title, entitled - 3 - 6492 CITY COUNCIL MEETING August 4, 2009 PUBLIC HEARINGS - QUASI-JUDICIAL: Hankins Rezone Ordinance No. 3369 (Cont'd) JOKRIJO Subdivision Ordinance No. 3370 CITY COUNCIL COMMITTEE REPORTS: ORDINANCE NO. 3369 AN ORDINANCE of the City of Port Angeles, Washington, rezoning Lots 11 and 12 of Block 239, and Lots 9 and 10 of Block 260, Townsite of Port Angeles, from Residential Single Family (RS-7) to Commercial Office (CO). e Councilmember Perry moved to adopt the Ordinance as read by title, citing Findings 1 - 15 and Conclusions 1 - 4. Councilmember Kidd seconded the motion, which carried unanimously. 2. JOKRlJO Subdivision: Director West advised the Council that the JOKRIJO Subdivision, located at 10th and N, received preliminary approval from the Council in October, 2007, and the approval is valid for five years. Final improvements can be completed either by actual improvement or through bond, and in this case, the applicant requested bonding in lieu of actual improvements. The bonding allows the developer to sell lots within a subdivision without completing all of the improvements, but ensures that required improvements will be completed within the five-year window. Director West indicated the recommendation is for approval of the final13-unit subdivision, and he provided a correction to the last line of Finding No.4: six (6) conditions have been bonded for and three (3) conditions have been satisfied. Director West recommended the second hearing be waived and the Council proceed to adoption. Lengthy discussion followed regarding time line requirements of subdivisions, revisions from the developer's engineer, as well as waiver of the second reading. Mayor Braun opened the public hearing at 7:36 p.m. Darlene Schanfald, address not stated, asked the location of the development as it relates to the Rayonier 13th & M Landfill. Director West provided a vicinity map to show the area under consideration. There being no further testimony, the public hearing was closed at 7:40 p.m. Mayor Braun read the Ordinance by title, entitled ORDINANCE NO. 3370 AN ORDINANCE of the City of Port Angeles, Washington, approving the 13-lot subdivision in the RS-O zone known as JOKRIJO Subdivision. Councilmember Williams recalled he had a property listing around the block, but he believed he could vote impartially. Councilmember Williams moved to waive the second reading of the Ordinance. The motion was seconded by Councilmember Di Guilio and carried unanimously. Deputy Mayor Wharton moved to adopt the Ordinance as read by title, citing Conditions 1 - 2, Findings 1 - 8, as amended, and Conclusions A - C. Councilmember Perry seconded the motion. Following brief discussion, a vote was taken on the motion, which carried unanimously. Councilmember Rogers expressed disappointment that Port Angeles lost the NOAA opportunity, noting it shows the restrictions on the State's ability in the area of economic development. She related that Senator Cantwell will provide oversight on the reasons for the decision, and depending on what is learned, it maybe incumbent for the City to seek reimbursement if there was truly no level playing field. e - 4 - e CITY COUNCIL COMMITTEE REPORTS: (Cont'd) LA TE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: Establishing Bond Reserves in the Treatment Plant Operations & Maintenance Fund Ordinance No. 3371 Net Metering Ordinance Amendment e Medic I Transport Rate Adjustment Ordinance No. 3372 CITY COUNCIL MEETING 6493 August 4, 2009 Councilmember Di Guilio reported on last week's Pool District Board meeting. The Board established a budget committee to develop the 2010 Budget, presented draft by-laws for review, developed a plan to have the County Treasurer pay bills, and equalized fees for all users. The Board extended the contracts with the Swim Club and the Port Angeles Swim Team. An advisory committee may be appointed at the next meeting in order to focus on the District's requirements and needs. Deputy Mayor Wharton advised the Council she will be out of town until August 27th. Mayor Braun reported on the Mayor's meeting with Sequim. The Mayor of Forks was unable to attend. A number of common issues were discussed, one of which was court costs. Councilmember Perry reminded the Council ofthe upcoming Heritage Days activities. There were no late items added to the agenda by staff. Councilmember Rogers requested a future agenda item related to the requirements and time lines on subdivisions, as well as the self-imposed rule of second readings of ordinances. 1. Establishing Bond Reserves in the Treatment Plant Operations & Maintenance Fund Director Ziomkowski indicated the proposed Ordinance designates an account that will satisfy the requirement for a reserve fund as set by the 1998 and 2003 Water/Wastewater Bond Ordinances. She provided clarification on the two bonds, and the language in the Ordinance. City Engineer Sperr shared his understanding in that the fund of$7.5 million intended for operations and maintenance won't be needed in its entirety in the first 19 years, so a portion can be dedicated to the requirements of the Bonds in order to avoid using other Water/Wastewater funds. Discussion followed on the naming conventions of the fund, and it was agreed the name can be changed at a future date. Mayor Braun conducted a second reading of the Ordinance by title, entitled ORDINANCE NO. 3371 AN ORDINANCE of the City of Port Angeles, Washington, revising Chapter 3.42 of the Port Angeles Municipal Code relating to the Treatment Plant Operations and Maintenance Fund. Deputy Mayor Wharton moved to adopt the Ordinance as read by title. Councilmember Kidd seconded the motion, which carried unanimously. 2. Net Metering Ordinance Amendment: Deputy Director of Engineering Services Sperr stated the intent of the Net Metering Ordinance amendment is to make it consistent with the RCWs, allow the Electrical Engineer to maintain and update construction standards related to net metering proposals, and encourage greater private investment in renewable energy resources. In the ensuing discussion, various and sundry questions were raised on specific language in the Ordinance. Questions raised related to whether credits are the same as the charges, the net benefit to individuals, tax credits, cost recovery incentives, and the method of payment by the City for net energy. Lengthy discussion followed. Based on the number of questions left unanswered, Councilmember Williams moved to table consideration of the Net Metering Ordinance to the next Council meeting. The motion was seconded by Councilmember Rogers and carried unanimously. 3. Medic I Transport Rate Adjustment: Mayor Braun conducted a second reading of the Ordinance by title, entitled - 5 - 6494 CITY COUNCIL MEETING August 4, 2009 Medic (Transport Rate Adjustment Ordinance No. 3372 (Cont'd) Facade Improvement Program Ordinance No. 3373 RESOLUTIONS: Allocation of Funds to Capital Projects Resolution No. 17-09 ORDINANCE NO. 3372 AN ORDINANCE of the City of Port Angeles, Washington, revising Chapter 3.70 of the Port Angeles Municipal Code relating to Medic I charges. e Deputy Mayor Wharton moved to adopt the Ordinance as read by title. Councilmember Perry seconded the motion. Chief McKeen stated that, by adjusting fees, it assures the City charges a reasonable transport fee, but City residents have no out- of-pocket expenses. This has positive effect by insuring a reasonable transport charge in order to keep the monthly rate down for all of the citizens. A vote was taken on the motion, which carried unanimously. 4. Facade Improvement Program: Community & Economic Development Director West reviewed the proposed establishment of a Facade Improvement Program for locations within core commercial zones throughout the City. The program would focus on arterial corridors and the Central Business District. Director West advised the Council that two modifications were made to the Ordinance. One was the removal of the restriction on the sale of properties that received a grant, and the second was additional criteria for grant evaluations which takes into consideration the overall building visibility. Mayor Braun conducted a second reading of the Ordinance by title, entitled ORDINANCE NO. 3373 AN ORDINANCE of the City ofport Angeles, Washington, adopting a Facade and Signage Improvement Program. Brief discussion followed regarding the need to address the fact that the rear of many buildings can be viewed from the water which might potentially be considered a viewscape. Councilmember Perry moved to adopt the Ordinance as read by title. The motion was seconded by Councilmember Kidd and carried unanimously. I. Allocation of Funds to Capital Projects: Manager Myers presented information relative to the approximately $800,000 in budgetary savings that was experienced in 2008, recommending that the savings be allocated to 2009/2010 capital projects and funding shortfalls in a conservative fashion. He directed attention to Exhibit 1, providing an explanation of the FEMA projects, as well as the City Pier Fire Suppression System. He reviewed the recommendation in detail. Brief discussion ensued about funding for the Sidewalk Program. Mayor Braun read the Resolution by title, entitled, RESOLUTION NO. 17-09 A RESOLUTION of the City Council ofthe City of Port Angeles, Washington, designating funds for certain capital projects. Deputy Mayor Wharton moved to pass the Resolution as read by title. Councilmember Rogers seconded the motion. Councilmember Williams chose to remain consistent about wanting a list of priorities, so he indicated he would be voting in opposition to the motion. Discussion followed on whether this action would be binding if economic conditions were to change. Manager Myers responded this would authorize staff to proceed with the projects as outlined; the emergency project will be scheduled for this fall. A vote was taken on the motion, which carried 6 - 1, with Councilmember Williams voting in opposition. e - 6- e Lucero Street Vacation Resolution No. 18-09 OTHER CONSIDERA nONS: National Maritime Heritage Area Dupar Parking Agreement '; ~ ': .:...l. e PUBLIC HEARINGS - OTHER: FINANCE: CITY COUNCIL MEETING 6495 August 4, 2009 2. Lucero Street Vacation: Director West informed the Council that a petition has been submitted requesting the vacation, and it is recommended that the Council set a public hearing on the street vacation by the passage of the Resolution. Mayor Braun read the Resolution by title, entitled RESOLUTION NO. 18-09 A RESOLUTION of the City Council of the City of Port Angeles, Washington, setting a hearing date for September 15, 2009, for a petition to vacate a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2nd Addition to the Townsite of Port Angeles, Washington. Council member Williams moved to pass the Resolution as read by title. Deputy Mayor Wharton seconded the motion, which carried unanimously. 1. National Maritime Heritage Area: Director West presented the Council with a proposed letter in support of the National Maritime Heritage Area for Washington State. The letter was drafted as a follow-up to the July 21,2009, City Council meeting, at which time Dr. Allyson Brooks of the Washington State Department of Archaeology and Historic Preservation made a presentation on the National Maritime Heritage Area. Lengthy discussion followed with regard to a funding plan, prior conversations related to removal of the Elwha Dams, proposed legislation to remove dams on the Snake River, the fact that the Heritage Area would have no regulatory powers, and improved tourism funding for those areas that have been designated as Heritage Areas. Individual Councilmembers expressed their opinions, after which Deputy Mayor Wharton moved to authorize the Mayor to sign the letter of support. Councilmember Kidd seconded the motion, and following further discussion about the need to be cautious, a vote was taken on the motion, which carried 6 - 1, with Councilmember Williams voting in opposition. 2. Dupar Parking Agreement: Senior Assistant Attorney Dickson presented information pertinent to the proposed lease amendment with Tine Construction Services LLC, formerly known as First Street Plaza, located at 151 and Oak Streets. The prior parking lease of 1998 included an option to extend the term to July 31, 2014, and Mr. Dupar provided timely notice to exercise his option to renew the lease. The parking spaces are used to accommodate DSHS parking. Attorney Dickson summarized the details ofthe lease, to include the lease rental rate with an annual escalator, plus the leasehold excise tax and quarterly PBIA assessments. Discussion followed about the name change from First Street to Tine, parking spaces by Zak's, why this isn't going out for an RFP, and how it may relate to a parking study. Attorney Dickson responded to questions posed by the Council, noting it is not an unusual , " \, :. .:practice for a successor business, as it is still the same people. Director West also provided clarification with regard to the Downtown Association receiving the revenues from this lease agreement. Clarification was provided by Manager Myers in that staff will be getting back to the table with P ADA to finalize negotiations and this action is necessary before the negotiations can continue. He added that the Downtown Association has recommended approval of the lease. Deputy Mayor Wharton moved to approve the Lease Amendment and authorize the City Manager to make minor modifications, if necessary, and execute the Amendment. Councilmember Di Guilio seconded the motion, which carried unanimously. None. None. - 7 - 6496 CITY COUNCIL MEETING August 4, 2009 CONSENT AGENDA: INFORMATION: EXECUTIVE SESSION: ADJOURNMENT: Deputy Mayor Wharton moved to accept the Consent Agenda, to include: I.) City Council Meeting Minutes of July 2 1,2009; 2.) Expenditure Approval List from 711 1/09 to 7/24/09 for $1,283,337.42; 3.) Crabapple Lane/Port Angeles Plaza Cable Upgrades, Projects CLOI-2008 and CL02-2008, Final Acceptance; and 4.) 2009 Tree Trimming Contract, Award. Councilmember Rogers seconded the motion~ and following a question regarding two checks listed, a vote was taken on the motion, which carried unanimously. e Manager Myers reported on the loss of NOAA, indicating he talked to members of the local team who developed the proposal, and the main question is, why Oregon. Additional information will be forthcoming over next several weeks. / I He reported the City has been successful in attracting the Wednesday Farmers Market' to the Gateway. Now, on Saturday, August 15th and August nod, the Farmers Market will try the facility for the weekend market. The City wants to show our support by distributing flyers in the community. The application period closed for the position of City Clerk, and the next Council meeting will be the last for Mrs. Upton. Manager Myers indicated twenty applications were submitted for the position, and six were identified as having the basic requirements. Following telephone interviews, three of the applicants will be invited for an interview. A Councilmember will be invited to join the interview team. Manager Myers reminded the Council of the Thursday evening Town Meeting. He then addressed the Department of Ecology, who puts out new issue papers every five years to cover an assortment of environmental issues they are updating. They typically write new policies, rules and regulations, many of which have a direct impact on the City. The DOE is accepting public comment, and of particular note is one having to do with fish consumption rates, background concentrations and sediment cleanup standards, as well as other toxic radioactive and biological substances. Because the City doesn't have the necessary scientific and environmental expertise, Manager Myers advised the Council that staff will be seeking input from ExPonent consultants at an expense of the Economic Development Fund. Representatives of the consultant will be invited to a September Council meeting to discuss how the regulations may impact the community. At Councilmember Rogers' suggestion, Manager Myers indicated he would seek an extension for the response period from DOE. None The meeting was adjourned at 9:07 p.m. ~a~ C7~~-<- Gary Braun, y~r e - 8 -