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HomeMy WebLinkAboutMinutes 08/05/2008 e CALL TO ORDER - REGULAR MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: PUBLIC COMMENT: PUBLIC CEREMONIES/ PRESENTATIONS: WORK SESSION: Port Angeles Regional Chamber of Commerce Quarterly Report e Mid-Year Financial Report 6278 CITY COUNCIL MEETING Port Angeles, Washington August 5, 2008 Mayor Braun called the regular meeting ofthe Port Angeles City Council to order at 6:00 p.m. Members Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers and Williams. Members Absent: None. Staff Present: Manager Madsen, Attorney Bloor, Clerk Upton, G. Cutler, T. Gallagher, D. McKeen, Y. Ziomkowski, N. West, L. Dunbar, P. Lusk, S. Roberds, B. Coons, S. Johns, and T. Pierce. Public Present: E. Petersen, T. Jennings, B. Booher, D. Neupert, P. Lamoureux, R. Gruver, and D. Pilling. All others present in the audience failed to sign the roster. The Pledge of Allegiance to the Flag was led by Councilmember Williams, followed by a moment of silence in memory of Washington firefighters Andy Palmer and Daniel Packer who died in the line of duty fighting fires in California. Paul Lamoureux, 602 Whidby, addressed the Council regarding public comment at City Council meetings, ideas related to Phase III for Lincoln Park and the Port's property sale in the area of the airport, fluoridation, and the need to stop funding special interest group activities. None. 1. Port Angeles Regional Chamber of Commerce Quarterly Report: Russ Veenema, Executive Director ofthe Port Angeles Regional Chamber of Commerce, introduced Board members Dave Neupert and Edna Petersen. He discussed tourism as it relates to the current economy, indicating the 2008 marketing decisions were made in 2007. Much has changed since that time, and there is a need to focus on the 1-5 corridor for marketing. Mr. Veenema reviewed current marketing efforts, such as the cooperative campaign involving Victoria Express, the Coho, the Visitor & Convention Bureau, and the Cities ofSequim and Port Angeles. He also reviewed KIRO TV's featured "Trip on a Tankful". Mr. Veenema summarized 2008 lodging tax revenues as compared to 2007, expressing the hope that August will be better than last year. He indicated vacation decisions are on hold for many people, but gas prices have been coming down which may result in vacations to the Peninsula. Mr. Veenema itemized positive attributes to the marketing effort, such as the downtown sidewalks and pavers, the Olympic Discovery Trail, and the unveiling of the "Avenue of the People" this coming weekend, something that was aided by Lodging Tax funds. 2. Mid- Year Financial Report: Finance Director Ziomkowski used PowerPoint slides to discuss the City's current - 1 - I 62179 CITY COUNCIL MEETING August 5, 2008 Mid-Year Financial Report (Cont'd) Break PUBLIC HEARINGS - OTHER: Electric Utility 2008 Resource Plan PUBLIC HEARINGS - QUASI-JUDICIAL: financial position, where the City is going, challenges being faced, what to expect in 2009 and 2010, and the state of the local economy. Director Ziomkowski advised the Council that the total City budget for all funds is almost $110 million. She emphasized that every fund is treated as a separate entity, so the funds cannot be co-mingled. She focused on two funds that are funded by taxes and provide basic services: the General Fund and the Street Fund. The two funds total almost $19 million, and she reviewed in detail the unexpected decrease in revenues for the year, as well as revenue trends that encompass sales, property, and utility tax. Director Ziomkowski also discussed current trends with respect to investments in that short-term interest rates are down. She reviewed the Street Fund, indicating there are fewer funding sources available in spite of more demands on street and transportation programs. In addition, Director Ziomkowski discussed reserves and the policy that a minimum of 10% of the budget, or $1.7 million, must remain in reserves. She stressed the importance of not using reserves for operating expenses. The same policy requires the designation of budgetary savings to capital projects. e Director Ziomkowski provided an economic outlook, discussing trends in revenues and expenses. She summarized the City's past efforts in absorbing additional services while, as the same time, sustaining reduced revenues. Every effort was made to balance the budget without cutting services, and Director Ziomkowski advised the Council that the City cannot continue to do more with less. She urged the Council to make the difficult financial decisions now, to communicate with the citizens on why service levels cannot be sustained, to meet with legislators to discuss problems, to determine whether tax increases are possible, and to re-examine operating and capital needs and the resources necessary to meet those needs. Discussion followed. Mayor Braun recessed the meeting for a break at 7:36 p.m. The meeting reconvened at 7:50 p.m. I. Electric Utility 2008 Resource Plan: Director Cutler introduced the City's new Power Resources Manager, Phil Lusk, who used PowerPoint slides to discuss the proposed Electric Utility 2008 Resource Plan. The Plan is required by State law for those serving more than 25,000 customers, and it must be submitted to CTED by September 1, 2008. Mr. Lusk advised the Council that the ultimate goal is to assure that future resources are adequate to meet projected loads, which is especially critical as the Bonneville Power Administration moves to a tiered rate structure in order to accommodate new growth. Mr. Lusk discussed current and future loads and resources, after which he responded to questions posed by the Council. Mayor Braun opened the public hearing at 8:14 p.m. Paul Lamoureux, 602 Whidby, engaged Mr. Lusk in discussion on such matters as a co- generation plant and possible partnerships. Gene Turner, a City resident, referenced a previous movement having to do with community-based solar, asking the status of that potential project. Attorney Bloor reminded the Council that the public hearing is not intended to engage in discussions with the public. Director Cutler indicated that comments will be addressed by staff and responses provided at the next meeting. Mr. Turner felt the solar concept was a wonderful idea, and he encouraged this type of community involvement. There being no further testimony, at 8: 19 p.m., Mayor Braun continued the hearing to August 19,2008. None. e - 2 - e LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: RESOLUTIONS: ADA Compliance Resolution Resolution No. 10-08 OTHER CONSIDERATIONS: State Purchasing Contracts Interlocal Agreement e Appoint City Representative to Clallam TransitPTBA CITY COUNCIL MEETING August 5, 2008 6280 Manager Madsen indicated there would be an item for discussion under City Council Committee Reports. Deputy Mayor Wharton asked for discussion regarding the Joint Statement issued July 22, 2008, which was added to City Council Committee Reports. Councilmember Williams offered kudos to Manager Madsen for the content of his guest appearance on KONP Radio Monday afternoon. Mayor Braun added the appointment of a City representative to the Clallam Transit PTBA under Other Considerations. Mayor Braun asked Human Resources Manager Coons for a status report on the search for an interim Manager and a permanent Manager. Human Resources Manager Coons informed the Council he had contacted four Executive Search firms, and all four will be providing proposals for the search for a permanent City Manager. He also placed ads for an interim Manager with a deadline of Wednesday of next week. He indicated he had been contacted by some individuals with regard to the Interim Manager position. None. 1. ADA Compliance Resolution: Human Resources Manager Coons advised the Council that applications for Community Development Block Grants require the applicant to have a policy and notice of procedures regarding the Americans with Disabilities Act (ADA). The Resolution presented for consideration adopts such a policy, establishes an ADA Coordinator for the City, and creates a complaint procedure. Mayor Braun read the Resolution by title, entitled RESOLUTION NO. 10-08 A RESOLUTION of the City Council of Port Angeles, Washington, adopting a policy and notice regarding the Americans with Disabilities Act. Councilmember Di Guilio moved to pass the Resolution as read by title. The motion was seconded by Deputy Mayor Wharton. Councilmember Rogers reported the CED Committee had reviewed the policy and procedures and recommended them for approval. Discussion followed on the self-evaluation checklist, and Mr. Coons indicated the Parks Department has focused on ADA compliance in terms of City Parks. A vote was taken on the motion, which carried unanimously. 1. State Purchasing Contracts Interlocal Agreement: Public Works & Utilities Director Cutler indicated the State has instituted a new interlocal agreement for its participating organizations to use the State's purchasing contract program. He noted it saves the City money by not having to advertise for competitive procurements; the cost is $1,000 per year. Following brief discussion on the anticipated savings, Councilmember Perry moved to authorize the City Manager to sign an initial Interlocal Agreement for State purchasing contracts with the State of Washington, and to authorize the Director of Public Works &Utilities to sign the annual renewals for the agreement. The motion was seconded by Councilmember Kidd, and following discussion on budgetary savings and improved efficiency in staff time, a vote was taken on the motion, which carried unanimously. 2. Appoint City Representative to Clal/am Transit PTBA: Mayor Braun referenced a letter received from Clallam Transit with regard to the need for the appointment of an elected City official to serve as the City's representative for purposes of the Public Transportation Benefit Area to review the composition of the - 3 - I 6281 CITY COUNCIL MEETING August 5, 2008 Appoint City Representative to Clallam Transit PTBA (Cont'd) FINANCE: Department ofFish & Wildlife Lease Agreement Equipment Purchase - Electric Transformers Transfer Station - Modification 2008~00 1 CONSENT AGENDA: CITY COUNCIL COMMITTEE REPORTS: PTBA. Councilmember Di Guilio moved to appoint Mayor Braun as the representative for the PTBA. Councilmember Rogers seconded the motion, which carried unanimously. e 1. Department of Fish & Wildlife Lease Agreement: Director Cutler reviewed a lease agreement with the Washington Department ofFish & Wildlife, allowing the WDFW to operate a fish-rearing channel on City property. The former agreement expired, and a new lease is being finalized to allow the WDFW to continue to operate its fish-rearing channel under a two-year lease. He explained the two- year time frame was necessary so the City could have the opportunity to see what happens with respect to the dam removal project. The lease agreement was discussed by the Utility Advisory Committee and recommended for approval. Councilmember Kidd moved to approve and authorize the Mayor to sign a fish-rearing channel lease with the Washington State Department of Fish & Wildlife, and authorize the City Manager to make minor modifications to the lease, if necessary. Councilmember Rogers seconded the motion, and following brief discussion on the terms of the lease and the dam removal project, a vote was taken on the motion, which carried unanimously. 2. Equipment Purchase - Electric Transformers: Director Cutler informed the Council that the Port of Port Angeles will be adding capacity to the Terminal 1 dock to allow large ships to operate entirely from shore power. In addition, Evergreen Fiber has added an electric chipper that requires additional capacity. He eXplained that commercial customers pay the City to purchase the transformers. Following brief discussion, Councilmember Rogers moved to authorize the City Manager to sign a contract and purchase order with WESCO Distributors, Inc., of Portland, Oregon, for three 1500 kV A transformers manufactured byABB Inc., at a price of $101,502.51, including sales tax. The motion was seconded by Councilmember Perry and carried unanimously. 3. Transfer Station - Modification 2008-001: Director Cutler presented information pertinent to the final phase of construction of the Transfer Station, which is scheduled for completion later this summer. The work involves removal of the old scale house, the scales, and paving the recycle area and the roadway from the recycle area to the front entrance. He proposed to do the work through a contract modification with Waste Connections. Deputy Mayor Wharton moved to approve and authorize the'Director of Public Works & Utilities to sign modification 2008-001 with Waste Coqnections of Washington, Inc., in the amount of$13,734.28, including tax. Councilmember Rogers seconded the motion, which carried unanimously. Councilmember Di Guilio moved to accept the Consent Agenda, to include: 1.) City Council Minutes of July 15, 2008, regular meeting; July 18, 2008, special meeting; July 22,2008, special meeting; July 29, 2008 special meeting; 2.) Expenditure Approval List from 7/5/08 to 7/25/08 for $3,986,411.20; 3.) Recommend Appointment of City Representative to Clallam County Animal Issues Advisory Committee; and 4.) Washington State DOT Maintenance Interlocal Agreement. The motion was seconded by Deputy Mayor Wharton and carried unanimously. As a follow-up to the meeting of July 29,2008, Councilmember Perry reported that he and Ray Gruver had met with representatives of the League of Women Voters with respect to the facilitation of a public forum. Councilmember Perry distributed a response from the League, reviewing the proposed format for such a forum and answering questions as posed by the Council. Following discussion and further input from Councilmember Perry and Ray Gruver, Deputy Mayor Wharton moved to accept the e - 4 - e CITY COUNCIL COMMITTEE REPORTS: (Cont'd) INFORMATION: EXECUTIVE SESSION: RETURN TO OPEN SESSION: ADJOURNMENT: e CITY COUNCIL MEETING August 5, 2008 6282 League of Women Voters proposal as presented. The motion was seconded by Councilmember Perry and carried unanimously. The Council then directed its attention to the selection of a date for the public forum. Councilmember Perry moved to conduct the public forum on Wednesday, August 27,2008, at 6:00 p.m. He reiterated the forum would be limited to two hours. Deputy Mayor Wharton seconded the motion, which carried unanimously. Deputy Mayor Wharton introduced for discussion some of the action items that had been previously identified by the Council, such as seeking a facilitator to improve the Council's process. Additionally, in view of the Joint Statement, she suggested that the Council consider revisions to the City Council Rules of Procedure. She felt it important to begin by analyzing the situation and doing some debriefing. In the ensuing discussion, individual Councilmembers expressed the opinion that the public forum should be the first priority, after which consideration could be given to the Rules of Procedure. To that end, staff was asked to obtain copies of procedures from other municipalities for the Council's review. Councilmember Kidd reported on her attendance at Andy Palmer's funeral, and she expressed her pride in the Port Angeles Fire Department. Councilmember Williams introduced for discussion the Real Estate Committee's proposal to surplus the Niichel property, the largest contiguous parcel in the downtown area. Attorney Bloor explained that, in this instance, a public hearing would not be required by State law or City ordinances. However, in the past, the Council has typically held public hearings before declaring property surplus. So, even though not legally required, the Council may choose to conduct a public hearing. Following discussion, Councilmember Perry moved to set a public hearing for September 2, 2008, on the matter of declaring the Niichel property surplus. The motion was seconded by Councilmember Williams and carried unanimously. Manager Madsen had no additional reports other than what was provided in the Information Agenda. Based on input from Attorney Bloor, Mayor Braun announced the need for an Executive Session for approximately 15 minutes under the authority of RCW 42.30.140(4),to discuss a position or strategy during contract negotiations, with no action to follow. The Executive Session convened at 9:31 p.m. The Executive Session concluded at 9:47 p.m, and the Council convened in regular open session. No action was taken. The meeting was adjourned at 9:47 p.m. ~ .C}/WT1 ~~~ Gary Brau /, Mayor - 5 -