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HomeMy WebLinkAboutMinutes 08/18/20096500 • CITY COUNCIL MEETING Port Angeles, Washington August 18, 2009 CALL TO ORDER - Mayor Braun called the regular meeting of the Port Angeles City Council to order at 6:00 REGULAR MEETING: p.m. ROLL CALL: Members Present: Mayor Braun, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams [via speaker phone]. Members Absent: Deputy Mayor Wharton. Staff Present: Manager Myers, Attorney Bloor, Clerk Upton, G. Cutler, T. Gallagher, D. McKeen, N. West, Y. Ziomkowski, T. Pierce, J. Hurd, C. Hagar, B. Horton, and B. Coons. Public Present: D. Pilling, M. Boulter, E. Johnson, B. Forsberg, B. Nelson, J. Lyon, J. Hurd, C. Blevins, P. Gagnon Campbell & O. Campbell, S. Nixon,' P. Downie, B. Vreeland, B. Robin, D. Hover-Krauer, and G. Shield. All others present in the audience failed to sign the roster. PLEDGE OF The Pledge of Allegiance to the Flag was led by Clerk Upton. ALLEGIANCE: PUBLIC CEREMONIES/ I. United Way 2009 Mid-Year Report. PRESENTATIONS & EMPLOYEE Jody Moss, United Way Executive Director, distributed information to the Council and RECOGNITIONS: thanked the Council for recognizing the value of human services in Port Angeles. She advised the Council that more than 6,830 individuals received help from the Port Angeles United Way 2009 Mid- Human Services funds, 5,447 of whom reside in the Port Angeles area. Ms. Moss Year Report expressed concern with regard to meeting the future needs of United Way clients in view of the current recession, unemployment, and State budget cuts. Many individuals are seeking help for the first time in their lives. There are increasing needs at a time when resources, grants, and donations are decreasing. If both the City and County were to further cut funding, there would be significant impacts in terms of providing services. Ms. Moss reviewed the status of City funding to the various agencies, stressing the importance of its focus on prevention. She noted that continued involvement of the clients is one measure that the program is establishing relationships and is able to effect a more permanent change in the client's life. She discussed the proven cost benefit of allocating funds up front as opposed to waiting until problems are much worse, which is the role of government. Ms. Moss listed the agencies who have been the recipients of City funds, summarizing program outcomes, how individual lives have been changed, and the resultant reduction in demands on the health care system and the mental health system. Based on studies, the return on investment is from $7 - $17, and agencies use the funds for a match for other grants,. thereby multiplying the effect of the funds. Ms. Moss asked the Council to keep in mind those individuals funded are filling an economic role in the community, and they need a hand up. She thanked the Council for the work they are doing. Ms. Moss was thanked for the presentation. -1- 6501 CITY COUNCIL MEETING August 18, 2009 Employee Recognitions 2. Employee Recognitions: Manager Myers recognized Richard Bonine for his efforts on the Farmers Market at The • Gateway. A number of positive comments were received. The Market will be making a final decision as to a permanent move to The Gateway in the near future, but in the meantime, the Market will be at The Gateway again this Saturday. Manager Myers directed kudos to Bob Kajfasz, who received accolades in the newspaper this past weekend. Manager Myers read and presented a proclamation to retiring City Clerk Becky Upton, recognizing her many accomplishments during her twenty years of service to the City and the community. Ms. Upton was presented with flowers from the Mayor, a coloring book from Councilmember Di Guilio, and a card signed by Department Heads and City Councilmembers was presented to her by Fire Chief McKeen. Mayor Braun and Councilmembers Rogers, Kidd and Perry thanked Ms. Upton for all her help and support over the years, noting she was the epitome of professionalism and was going to be a hard act to follow. Ms. Upton thanked everyone for their kind words and noted it has been a great place to work, stressing the City team has always had the best interest of the City at heart. Manager Myers then introduced the new City Clerk, Janessa Hurd, and her husband, John, noting her work background and stating he felt~she was going to be a welcome asset to the City. Break Mayor Braun recessed the meeting for a break at 6:30 p.m. The meeting reconvened at 6:53 p.m. Employee Recognitions Manager Myers informed the Council he will be the recipient of a Thirty-Year Award at (Cont'd) the ICMA meeting next month. Also, since doing this type of work, he has never had his dad attend a City Council meeting. It was his pleasure to introduce his father, Jack Myers, to the Council. PUBLIC COMMENT: Janet Marx, 112 Lockerbie Place, advised the Council she had gathered the signatures of 14 people who are opposed to any public funds going to HarborWorks. She indicated she would provide the list to the City Clerk. Bob Vreeland, 520 E. 10`h Street, expressed concern with accountability for the funding of HarborWorks. He indicated Rayonier is afor-profit corporation, is not altruistic, and will not sell the property for $1.3 million less than the market. He felt it is not certain that the taxpayers will ever see the $1.3 million if it is approved tonight. Mary-Alice Boulter, 602 S. B Street, congratulated Clerk Upton on her retirement and thanked the City for its attempts to wisely use funds entrusted to them. Referencing previous testimony she provided, and in view of State and City economics, she expressed opposition to further funding for HarborWorks, feeling more accountability is needed. Harvey Kailin, Sequim, urged the Council to make an easy decision, which is not to spend money. The process with Rayonier goes back a decade, and it takes a lot of time, much like dealing with a fish. Mr. Kadin indicated the testing is not complete, and there is no point in rushing, as it puts a burden on the taxpayers. The City should let the process continue until such time there is a clear concept of the cleanup. It is not known how much the City will be on the hook. Ed Johnson, 312 E. 12`h Street, feels HarborWorks is a new bureaucracy to which he is opposed. Citing the reduction in seasonal salaries, the issue with the pool, and now the consideration of a $500,000 loan to HarborWorks, a choice should be given to the people on funding or not funding HarborWorks. He felt the people should be given the right to -2- CITY COUNCIL MEETING August 18, 2009 PUBLIC COMMENT: vote on the issue, and he agreed with comments made by the previous speakers. (Cont'd) Dick Pilling, 72 Mt. Pleasant Heights Lane, spoke in favor of HarborWorks funding, sharing his view of Rayonier as a machine that distributed money in the community through the hundreds of employees. In addition, Rayonier paid taxes to the City. Mr. Pilling felt it is imperative to move forward to make the site productive in the form of jobs for the citizens and a tax base for the community. This is now the 10`h year of a 3- year cleanup, and HarborWorks has a plan to get Rayonier "off the dime." Mr. Pilling hopes see them do so. He urged the Council to not be swayed by a vocal minority. The Council must listen to the people, but to all of them.. Sarah Lee O'Connor, 5148 Mt. Pleasant Road and the owner of ten residences in the City, was concerned about Port Angeles and very opposed to giving any money to HarborWorks. She felt Rayonier, who made the site full of toxic substances, must be the industry to clean up the site. Ms. O'Connor was uncertain as to the definition of due diligence, but she stressed her opposition to any money going to HarborWorks. Greg Shield, 537 W. 7`h Street, noted the Town Meeting held to seek public input on the budget. He indicated the City first had the Gateway debacle and is now willing to move onto HarborWorks, which will be another black hole. Mr. Shield felt it would take a lot oftime to see any results, and he would rather have potholes fxed and parks maintained. Shirley Nixon, P. O. Box 178, felt that whenever there is $1 million on the table, it deserves scrutiny and accountability. Discussions have been held with the Port, as they funded $500,000 with only $200,000 in the budget. Ms. Nixon expressed interest in knowing the terms of the loan, such as the interest rate and repayment terms. She asked the Council to not take action until the loan agreement had been provided for review, something that would be good for public confidence. Ms. Nixon read from the 2008 budget, noting there was a myth about the settlement funds not beirig used for any other part of the budget. She felt it isn't set in stone that settlement money needs to be used for HarborWorks, and she asked the Council to thoroughly examine the settlement. CITY COUNCIL There were no reports submitted at this time. COMMITTEE REPORTS: WORK SESSION: None. LATE ITEMS TO BE There were no late items added to the agenda. PLACED ON THIS OR FUTURE AGENDAS: ORDINANCES NOT 1. Net Metering Ordinance Amendment: REQUIRING PUBLIC HEARINGS: Councilmember Williams joined the Council meeting via speaker phone. Public Works & Utilities Director Cutler addressed the Net Metering Ordinance, indicating it was an Net Metering Ordinance opportunity for the City to align itself with legislation passed by the State Legislature. Amendment It enables the City to offer net energy metering opportunities so people are encouraged Ordinance No. 3374 to provide their own source of power, with any excess power being fed back into the grid. Changes in the law have enabled larger facilities to be connected, and the language deleted in the Ordinance can be found in the State RCWs. Director Cutler explained that the City provides funds to individuals with surplus power, and credit is received from the State that goes back to those participating. He noted the requirements, adding there is an agreement that provides for a design. Discussion followed, and Director Cutler • responded to questions raised. 6502 -3- 6503 CITY COUNCIL MEETING August 18, 2009 ORDINANCES NOT Mayor Braun read the Ordinance by title, entitled REQUIRING PUBLIC HEARINGS: (Cont'd) ORDINANCE NO. 3374 Net Metering Ordinance AN ORDINANCE of the City of Port Angeles, Washington, revising Section Amendment 13.10.065 of the Port Angeles Municipal Code relating to net energy Ordinance No. 3374 metering. (Cont' d) Councilmember Rogers moved to adopt the Ordinance as read by title. The motion was seconded by Councilmember Williams and carried unanimously. RESOLUTIONS: None. OTHER 1. Department of Ecology -Interlocal Agreement: CONSIDERATIONS: Community & Economic Development Director West reviewed the Interlocal Agreement Department of Ecology - between the City and the Department of Ecology, providing funding for a number of Interlocal Agreement projects identified in the Phase I -Rayonier Update Process. A Critical Path Analysis was done that identified projects needing to be incorporated for both the harbor and the Rayonier site collectively. The agreement will allow for due diligence on the CSO Project and will enable the City to update and review the Harbor Resource Management Plan in conjunction with the Shoreline Master Program. The two must be taken into consideration together. Director West added there will be a thorough public visioning process, as public opinion is greatly valued and needed for the entire harbor. Discussion followed, and Director West responded to questions related to due diligence and provided clarification that the Department of Ecology is the funding source. Councilmember Rogers moved to approve and authorize the City Manager to sign the agreement and make minor changes to the agreement as necessary. Councilmember Perry seconded the motion, which carried unanimously. PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - None. OTHER: FINANCE: Port Angeles HarborWorks Funding Request: Port Angeles HarborWorks To open consideration of the funding request from the Port Angeles HarborWorks Funding Request Development Authority, Manager Myers read aloud the letter of request from Executive Director Jeffrey Lincoln. Manager Myers indicated the Port of Port Angeles had approved the loan request this past week. Staff is requesting approval of the loan, as it will be dedicated to due diligence for cleanup and development. He added that the City had anticipated such funding would be necessary. Additionally, HarborWorks has submitted a grant request to DOE for $200,000, which they expect to be approved. Manager Myers reviewed a meeting held earlier in the year with HarborWorks, at which time staff related the need to show real progress in terms of hiring a director and developing a plan. Over the last six months, HarborWorks has accomplished a number of tasks, and they have a viable plan for moving forward on due diligence in determining the costs.for redevelopment. Mr. Lincoln has done a great deal of community outreach; he talked to the Chamber yesterday, and he created a website. As a result of public outreach, the public has a better understanding of this important project. Lengthy discussion followed, and Mr. Lincoln responded to questions posed by the Council. Discussion was focused on intended uses ofthe site and associated requirements to abate the property for redevelopment, and the anticipated means of attracting private capital, as well as possible Federal funding. It was noted that HarborWorks was to -4- CITY COUNCIL MEETING 6504 August 18, 2009 FINANCE: receive funding for cleanup, but the anticipated funds weren't available due to the State's (Cont'd) needs in view of the economy. Mr. Lincoln provided clarification on the request in that • the HarborWorks budget include environmental, engineering and other contractual Port Angeles HarborWorks services to evaluate the site conditions that are estimated to cost at least $300,000. Funding Request (Cont'd) Marketing analysis is estimated to cost $150,000, and legal costs may well be in excess of $200,000. It is necessary to define the risk of the costs to remediate the sediments and uplands under consider for acquisition. Not included in the budget are costs associated with land use planning and permitting. Mr. Lincoln further explained there are contingent dollars in the budget for the unexpected, and the Council may have been misinformed about Ivlodel Toxics Control Act. (MCTA) funds, which are not available to a public entity absent an agreement with that entity. Mr. Lincoln emphasized there is a vision of redeveloping the Rayonier property, but without the vision and intent of the City and the Port to bring the property back to a productive use, the cleanup will go on for a long time. He indicated the results of the DOE studies have yet to be released, and it is important to study the results and determine their meaning. Lengthy discussion involved the fact that Rayonier is a for profit company with no intention of altruistically donating the property to anyone. Mr. Lincoln felt it is HarborWorks' job to negotiate the best possible deal in order to clean up the property and make it productive. Discussion also involved whether there is a common vision beyond cleanup, the process for due diligence, and the marketing analysis to determine the highest and best use of the property and how that correlates to the community visioning process. Mr. Lincoln discussed public engagement, feeling it is his primary responsibility. He referenced the previous visioning process, which will prove beneficial as the process moves forward. Director West agreed that the 2007 vision process was significant. It is heavily documented, and the City would allow anyone to review the documents. Thirty-five different stakeholders were involved, as were hundreds of members of the public. The visioning for the Rayonier site is complete enough to move forward with the marketing process. The vision will also involve harbor planning. Mayor Braun. read into the record an a-mail sent by Deputy Mayor Wharton, who was unable to attend this evening's meeting. Deputy Mayor Wharton inquired as to whether the $500,000 was the right amount, discussed expectations at the end of the funding period, the participation of the Lower Elwha Tribe, and how to avoid an archeological shut-down late in the game. She indicated that, if she were at the Council meeting, she would be voting in favor of providing additional funding for the project. Discussion ensued on the archaeological aspect, and Mr. Lincoln indicated there is the likely presence of archeological resources on the site, based on a study done in 1997. He discussed the preservation of historical sites and associated requirements, adding that the City has protocols established with the Tribe. Because of the high probability of a native settlement and a cooperative colony on the site, he felt these issues can be addressed. The entire eastern half has been identified for open space not to be developed because of cultural resources. Following the lead of the Deputy Mayor's support of the funding request, Councilmember Rogers moved to approve the funding request fora $500,000 loan ' to continue with the due diligence assessment of the site to evaluate the total cleanup and redevelopment cost. The motion was seconded by Councilmember Williams. 'Individual Councilmembers explained the need to look at the bigger picture in terms of the acquisition of the CSO tank and the Agreed Order, with the alternative being much more expensive for the community. Additionally, the possible condemnation of the • property would be expensive as well. Observations were made that nothing happened on the property until HarborWorks was formed. Also provided was the historical perspective of the property since the time Rayonier anticipated closure of the mill. It is important to make something happen with accountability and results. -5- 6505 CITY COUNCIL MEETING August 18, 2009 FINANCE: Based on input from Attorney Bloor, Councilmember Rogers added language to the (Cont'd) motion authorizing the Mayor to sign a loan agreement using the same terms and conditions as the loan agreement executed last year, with the exception of the Port AngelesHarborWorks amount. Councilmember Williams agreed as seconder of the motion. Following Funding Request (Cont'd) brief discussion regarding progress being made in Grays Harbor, a vote was taken on the motion, which carried 5 - 1, with Councilmember Kidd voting in opposition. CONSENT AGENDA: Councilmember Di Guilio moved to accept the Consent Agenda, to include: 1.) City Council Meeting Minutes of August 4, 2009; Special Meeting of August 6, 2009; 2.) Expenditure Approval List from 7/25/09 to 8/7/2009 for $1,763,813.75; 3.) Equipment Purchase: Electrical Transformers; 4.) Department of Ecology Shoreline Grant Application; and 5.) Maloney Heights Community Development Block Grant (CDBG) Application. Councilmember Perry seconded the motion. Councilmember Kidd wished to discuss some items on the Expenditure Approval List, so the list was removed from the motion upon agreement of Councilmembers Di Guilio and Perry, the maker and seconder of the motion. Councilmember Kidd requested further information on Page L-29, related to a payment to Clallam Transit for legal fees, and on Page L-42, related to a Ford Expedition. Director Cutler offered to provide follow-up information on the Clallam Transit payment, and Councilmember Kidd was advised that Council had approved the vehicle purchase for the Police Department. A vote was taken on the motion, which carried unanimously. Councilmember Perry moved to approve the Expenditure Approval List as presented. The motion was seconded by Councilmember Kidd and carried unanimously. INFORMATION: Manager Myers referenced the Information Agenda items, noting the receipt of funding from the State of Washington for the City Archaeologist for two years, in keeping with the Settlement Agreement. The City has now received compensation for four of the five years stipulated. EXECUTIVE SESSION ADJOURNMENT: The staff is gearing up for the budget, and Manager Myers felt. there was a good turnout at the Town Meeting. The work now begins, and staff will have something for the Council in the next 4 - 6 weeks. A session on Initiative 1033 was held earlier in the day at the Port Angeles Business Association. Manager Myers indicated the Initiative would severely limit what the City could spend for the future. A fact sheet has been prepared and will be shared with the public so everyone fully understands the impacts on the City. Having just received Primary Election results, Manager Myers announced that Edna Petersen and Max Mania had moved forward to the General Election to vie for a seat on the City Council. None The meeting was adjourned at 8:15 p.m. ~~ Gary Braun, fayor ~~ Jan Hurd, City Clerk -6-