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HomeMy WebLinkAboutMinutes 08/05/2003 4996 CITY COUNCIL MEETING Port Angeles, Washington August 5, 2003 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, Erickson, Headrick, Rogers, and Williams. Members Absent: None. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, B. Collins, M. Con_nelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, and S. McLain. Public Present: P. Lamoureux and J. Pittis. PLEDGE OF The Pledge of Allegiance to the Flag was led by Fire Chief McKeen. ALLEGIANCE: PUBLIC CEREMONIES, 1. Certificate of Commendation - Washington Territorial Commission: PRESENTATIONS AND PROCLAMATIONS: Secretary of State Sam Reed recently presented Mayor Wiggins with a Washington Territorial Commission Certificate of Commendation, honoring Port Angeles for its Commendation- contributions during Washington's territorial years. Mayor Wiggins read the Washington Territorial Certificate of Commendation to those present. Commission Tnskegee Airmen - 2. Tuskegee Airmen - Airport Days: Airport Days Gene Rimov addressed the Council on the matter of equality in aviation and the contributions of the Tuskegee Airmen during World War II. A seminar on the Tuskegee Airmen will be offered at the September 6th Airport Days. Mr. Rimov provided a historical perspective on the Tuskegee Airmen, a group of Black American pilots who were impressive bomber escorts in spite of existing racial prejudices. Two of the Airmen, Lt. Col. William Holloman and Lt. Col. Ed Drummond, will be present at Airport Days to share memories of the role played by the Tuskegee Airmen, and Mr. Rimov extended an invitation to the Airport Days festivities. Letter from Roger 3. Letter from Roger Wheeler: Wheeler Mayor Wiggins referenced a letter received from Roger Wheeler concerning the Parks & Recreation Department and the excellent condition of the playing fields; he offered kudos to the Parks & Recreation Department. WORK SESSION: Goals & Objectives: Manager Quinn opened discussion on the Goals & Objectives for 2004, noting it was staff's recommendation that a Vision Statement be added to the Goals & Objectives document. He felt the Vision Statement would serve to provide a common focus for the organization, with the goals and objectives supporting that vision. Manager Quinn directed attention to the addition of three (3) objectives: -1- 4997 CITY COUNCIL MEETING August 5, 2003 WORK SESSION: 1.) Add to Goal of Financial Stability - Diversify revenue sources to the greatest extent (Cont'd) possible; 2.) Add to Goal of Community Development - Promote citizen & business involvement and responsibility in neighborhood maintenance, safety and improvement Goals & Objectives programs; and 3.) Add to Goal of Community Livability- Rehabilitate neighborhoods (Cont'd) through improvements to infrastructure, development of maintenance programs, and enhancing neighborhood aesthetics. Manager Quirm referenced the project status report that was made a part of the InformationAgenda, noting that the specific programs and projects become the activity program to support the more generalized Goals & Objectives. It is planned for the Goals & Objectives to be set before entering the budget phase for next year and, once the budget has been considered, then the programs and projects can be updated to coincide with the budget. Discussion ensued, and individual Councilmembers expressed opinions as to how the matter of the Goals & Objectives should proceed. Councilmember Rogers observed that, because of the Council's service on the various subcommittees, it would be helpful for the Councilmembers to give thought to discussions held at those different subcommittee meetings. The current topics could then be applied to the Goals & Objectives. For that reason, it was suggested and agreed that the matter be deferred to the next Council meeting for a work session. LATE ITEMS TO BE Dr. Steve Chapman, 443 W. Ridge Road, a Port Angeles pediatrician and active PLACED ON THIS OR proponent for fluoridation of the City's water system, informed the Council that, out FUTURE AGENDAS: of 25 children seen in the clinic today, he wrote 5 prescriptions for fluoride. He indicated that every family he has spoken to on the matter of fluoridation is grateful for the decision made by the Council and most anxious to proceed. Dr. Chapman indicated he still sees many children with a lot of cavities, many of which are having teeth pulled. This is the main reason for fluoridating the water. He indicated that most of the rest of the country has the benefit of fluoride, as many communities already made the decision similar to this Council. It is known that fluoride reduces cavities by30 - 40%, and it is something that has been endorsed by nearly every major medical and dental organization. Further, there is no doctor or dentist in town who opposes fluoride, other than a retired allergist from Blyn. Based on input from a pediatrician in Seattle, fluoride is still considered to be safe, efficacious, and cost effective. Some misinformation has been provided in the newspaper, but Dr. Chapman indicated that the American Dental Association has not set policy recommending that parents purchase bottled water for their children. Further, it has been proven there is no adverse impact on salmon. Dr. Chapman thanked the Council for its decision. Councilmember Erickson expressed interest regarding a letter received from a local dentist, listing all of the agencies supporting fluoridation, one of which was from the American Cancer Society. Dr. Scott Kennedy, 136 Old Black Diamond Road, agreed with commentaries offered by Dr. Chapman. He, too, thanked the Council for its decision to fluoridate the water supply and urged the Council to hold the course. Having reviewed much of the material available, Dr. Kennedy still felt fluoride is the way to proceed. He added that the Surgeon General's office is aware of the Port Angeles decision and the progress being made. Paul Lamoureux, 602 Whidby, referencing a previous Council item concerning third party billing for Medic I services, suggested that free Medic I services for City residents should be transferrable to Olympic Ambulance so that no charges are incurred unless the patient is transported outside the City limits. Conceminga recent meeting of the Lodging Tax Advisory Committee, Mr. Lamoureu× inquired as to whether the committee's recommendation would be considered this evening. Councilman Campbell indicated it wouldbe brought forward at the next meeting, as the committee' s recommendation needs to be incorporated into a contract. Mr. Lamoureux reiterated past support for a lodging tax increase, and he supported the dedication of lodging tax -2- CITY COUNCIL MEETING 4998 August 5, 2003 LATE ITEMS TO BE funds to capital. Turning to the issue of the graving dock, Mr. Lamoureux suggested PLACED ON THIS OR that dirt removal be directed to Shotwell during the day and to Rayonier during the FUTURE AGENDAS: night, with the hope this would assist daytime traffic mitigation plus meet Rayonier's (Cont'd) needs. Mr. Lamoureux distributed copies of information to the Council on water shortages, as well as forest fire dangers. FINANCE: Equipment Replacements for 2003 - Purchase Request for 3-4 Yard Dump Truck: Public Works & Utilities Director Cutler presented information specific to the request Equipment Replacements to purchase a 3-4 yard dump truck. The dump track is not available locally, thus for 2003 - Purchase of prompting the request to purchase from the State bid. It is intended that staff will 3-4 Yard Dump Truck proceed with the procurement of other items on the equipment replacement list in 60 - 90 days. Following discussion, Councilman Braun moved to authorize the City Manager to proceed with the purchase of a 3-4 yard dump truck with plow/sander hydraulics from the State bid. The motion was seconded by Councilmember Rogers and carried unanimously. CONSENT AGENDA: In considering the items on the Consent Agenda, Councilman Headrick expressed pleasure with the sidewalk and tree planting project at the east entrance. Discussion centered around the Netware training, as well as planned maintenance for the trees just planted. Parks Director Connelly indicated that, as additional trees are planted, consideration will need to be given to ongoing maintenance, as the watering truck is currently being used 12 hours per day, 7 days a week. Manager Quinn indicated that staff is trying to identify areas for volunteerism and/or business assistance in tree maintenance. Councilman Campbell moved to accept the Consent Agenda, to include: 1.) City Council Minutes of July 15, 2003; 2.) Expenditure Approval List - July 25, 2003 - $1,088,000.55; 3.) Electronic Payments - July 25, 2003 - $968,465.00; 4.) Travel Exceeding $1,500 - Netware 6 Certification; 5.) Accept Completion of Valley Street Overhead Electrical Rebuild, Project 02-10; 6.) Accept Lauridsen Blvd. & I Street Sidewalk Project; and 7.) Accept East Entrance Sidewalk Project. The motion was seconded by Councilman Braun and carried unanimously. CITY COUNCIL Councilman Headrick attended a meeting with Chiefs Riepe and McKeen and Naomi COMMITTEE Wu, at which time discussions were held with a citizens committee working toward the REPORTS & passage of the additional 1/10th of 1% sales tax. CALENDAR: Councilman Braun attended a Gateway meeting, as well as the 2nd Annual Parks & Recreation Family Fun Day, an event that was very successful. He also attended the Transit entrance audit conference, and he offered congratulations for Kathy Emery's completion of Treasurer's I certification training. Councilman Braun, having taken a recent trip to California, noted the contributions of migrant workers in providing fresh produce to the public. Councilman Campbell attended a meeting with the Department of Fish & Wildlife, addressing that department's relationship with the City, as well as the lease with the City for the salmon rearing channel. A great deal of work has been done on the Watershed Plan, and another meeting will be held September 4~ in that regard. Community Development Director Collins added that it would be appropriate for the Council to conduct a brief work session at its August 19 meeting to revisit certain issues in the Watershed Plan. Councilman Campbell continued that he attended a public hearing before the Olympic Region Clean Air Agency, at which time Daishowa's boiler emission standard revisions were addressed. The Lodging Tax Advisory Committee met on July 31 and recommended that $100,000 from reserves be used to bolster tourism into the fall and next year, with up to $20,000 to be used for Art on the Town, if needed, and $10,000 for special events. The committee was unanimous in its recommendation. Councilman Campbell recently represented the City before the Olympians in the Olympics when they greeted Bruce Baumgarmer, an Olympic -3- 4999 CITY COUNCIL MEETING August 5, 2003 CITY COUNCIL wrestler, to the City. COMMITTEE REPORTS & Councilman Williams toured the Rayonier site during the presentation of proposed CALENDAR: (Cont'd) development plans for that area. He was disconcerted to hear of the plans to move the dirt from the graving yard site to Shotwell instead of the Rayonier site. Councilmember Rogers reported on the recent Gateway meeting, thanking staff for its support on this project. She indicated that efforts will move forward at the same time property negotiations are proceeding. She attended an interesting luncheon with the Secretary of State, and has been involved with the Community& Economic Committee on such matters as the Parking Ordinance, presentation of a favorable property developmentinitiative, and matters of Code compliance. Having attended the Lodging Tax Advisory Committee meeting, Councilmember Rogers informed the committee members that 30% of the funds must be protected for capital purposes. In addition, Councilmember Rogers announced the opening of Jeffix Labs in Laurel Lanes, which is a new enterprise of fiber-fast internet gaming. Mayor Wiggins recently attended the Makah Economic Development Summit, and he noted various needs of the Makah that could be met by City staff in an advisory capacity. Manager Quinn indicated the City would be happy to provide assistance, as it meets the goal ofintergovernmentalrelations. Mayor Wiggins related a recent phone call from Lt. Marks of the Civil Air Patrol, informing him that 6 local youth won the national CAP competition, a most impressive fete. Public Works Director Cutler reminded the Council of the Clallam County Fair, August 14 - 17, during which the City will host an informationalbooth. He invited Council to participate in the City's booth. ORDINANCES NOT None. REQUIRING PUBLIC HEARINGS: RESOLUTIONS: None. OTHER None. CONSIDERATIONS: PUBLIC HEARINGS - None. QUASI-JUDICIAL: Break Mayor Wiggins recessed the meeting for a break at 7:05 p.m. The meeting reconvened at 7:20 p.m. PUBLIC HEARINGS- Proposed Electric Rate Adjustment: Public Works & Utilities Director Cutler OTHER: introduced the issue of the proposed electric rate adjustment. Various options will be presented this evening. It is recommended the public hearing be continued to the next Proposed Electric Rate Council meeting, as further discussion will likely occur at the upcoming meeting of the Adjustment Utility Advisory Committee. Power Resources Manager McLain, aidedbyPowerPoint slides, providedbackground information on what is precipitating the recommended rate increase. Contracts with LG&E Power, as well as Columbia Storage Power Exchange, are expiring, necessitating power purchases from the Bonneville Power Administration at a higher cost. Other components of the City's power supply are also increasing, so it will be necessary to increase retail rates to the customers in order to maintain the electric fund in a financially responsible fashion. Mr. McLain explained in detail the three Cost Recovery Adjustment Clauses and their impact on the rates being paid. He indicated that the net effect is a 5% increase in rates as of April 1, 2004. However, a pending lawsuit on the SN CRAC may be settled and -4- CITY COUNCIL MEETING 5000 August 5, 2003 PUBLIC HEARINGS - may reduce somewhat the impact of the rate increases. Therefore, it is recommended OTHER: that any rate adjustments due to the BPA rate changes be offset until April, 2004. Mr. (Cont'd) McLain explained that, in 2001, $850,000 in reserves per year were designated to mitigate the 2001 rate increase. Because of reductions in expenses and capital Proposed Electric Rate spending, there has been little use of the reserves beyond what was designated, and it Adjustment (Cont'd) is recommended that the reserves be used at the same level as in 2001 in order to mitigate the current rate adjustment. The reserve levels and rates could be re-evaluated in two years. Although there are certain unbudgeted expenses that can be anticipated, it is not recommended that rates be increased to cover these types of expenses. In addition, it is not expected that inflationary factors would contribute to any increase at this time. Mr. McLain explained to the Councilthe three options for rate increases, the associated advantages and disadvantages,.and the impacts on the reserve fund. He provided a comparison of the Port Angeles proposed rates with the current rates of other utilities, noting that Port Angeles has one of the lower rates. Mr. McLain reiterated the recommendation that the public hearing be continued to the next Council meeting to give the Utility Advisory Committee another opportunity to review the matter at its meeting of August 12, 2003. It is anticipated that a final rate recommendation would be provided to the Council at its meeting of September 2, 2003. Lengthy discussion followed, with Mr. McLain providing clarification on the use of reserves, the different rate options presented, as well as how Port Angeles rates compare with those of other utilities. Finance Director Ziomkowski offered further information relative to the reserve funds in that the City has set a minimum level of reserves based on 25% of maintenance and operation costs, so a $20 million budget would equate to a reserve of $5 million. Councilman Williams introduced different possible scenarios for the rate setting, and he spoke in support of other power generating possibilities, whether by conservation or other means of generating new power. After further discussion, Mayor Wiggins opened the public hearing at 7:55 p.m. Paul Lamoureux, 602 Whidby, attended the Utility Advisory Committee meeting, and he was interested in seeking clarification from Mr. McLain with respect to various components of the presentation on the rates. He inquired as to whether a healthy level in reserves would be maintained, to which Mr. McLain responded in the affirmative. Mr. McLain responded to additional questions from Mr. Lamoureux, who expressed the hope that rate increases could be minimized in order to focus on other projects, such as stormwater. Peter Ripley, Port Angeles Journal, asked how the rate increase would translate into the loss of jobs and whether the industrial rate would increase. Mr. McLain explained that a Daishowa employee serves on the Utility Advisory Committee and is well versed on the matter of the electric rates. The industrial rates are directly tied to the wholesale power rate, and he further explained how the impact will actually be calculated on a percentage basis. Councilman Williams asked for further clarification on the impacts to other businesses, and Mr. McLain stated the recommendation would be $.311 for all businesses. It must be realized that the power utilization by businesses varies greatly. Mr. Ripley cautioned the Council to be careful in raising rates so as to not affect the jobs in the community. Paul Lamoureux returned to the podium, stating he was aware of other litigation involving the Bonneville Power Administration, and he inquired as to how the outcome of those lawsuits might ultimately affect Port Angeles rates. Mr. McLain responded that he was only knowledgeable about the litigation already mentioned earlier in the presentation, and he was uncertain as to those mentioned by Mr. Lamoureux. At 8:05 p.m., Mayor Wiggins continued the public hearing to August 19, 2003. -5- 5001 CITY COUNCIL MEETING August 5, 2003 INFORMATION: Manager Quinn noted the Goals and Projects,update included in the Information Agenda. Director Cutler advised the Council that the City has been notified it will receive a Public Works Trust Fund loan for the downtown watermain project, which Councilman Williams indicated should promote discussion about the underground. Four candidates for City Council were present in the audience and welcomed by Mayor Wiggins: Peter Ripley, Grant Munro, Cherie Kidd, and Jack Pittis. EXECUTIVE SESSION: None. ADJOURNMENT: The meeting was adjourned at 8:10 p.m. l~ckf JTO~t~ ~-Tty"~ler[ - l- -6-