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HomeMy WebLinkAboutMinutes 08/19/2003 5002 CITY COUNCIL MEETING Port Angeles, Washington August 19, 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. Connelly, G. Cutler, D. McKeen, Y. Ziomkowski, T. Gallagher, S. McLain, G. Kenworthy, T. Smith, and J. Hebner. Public Present: J. Pittis, P. Lamoureux, B. London, A. Holzschuh, K. Monds, and J. Michalczik. All others present in the audience failed to sign the roster. PLEDGE OF The Pledge of Allegiance to the Flag was led by the Civil Air Patrol Cadets with the ALLEGIANCE: Port Angeles Composite Squadron. PUBLIC CEREMONIES, 1. Outstanding Performance Award - Civil Air Patrol: PRESENTATIONS AND PROCLAMATIONS: Mayor Wiggins presented the Outstanding Performance Award to Heike Ward, Public Affairs Officer of the Civil Air Patrol. The Mayor presented certificates to each of the Outstanding Performance squadron members, after which they individually explained their personal contributions Award - Civil Air Patrol to the success of the entire team. Ms. Ward concluded the presentations by informing the Council that the squadron won the regional competition and then competed with eight regional winners at the national level. There were originally 160 teams in the competition, and the Port Angeles group won first place. Beautification Award - 2. Beautification Award - Olympic Bank: Olympic Bank Mayor Wiggins read the Olympic Bank Beautification Award; no one was present to accept the award. Beautification Award - 3. Beautification Award - Frugal's Restaurant: Frugal's Restaurant Mayor Wiggins read the Frugal' s Restaurant Beautification Award; no one was present to accept the award. WORK SESSION: 1. Watershed Plan: Watershed Plan Community Development Director Collins distributed copies of a memorandum delineating the final draft language in the Watershed Plan, noting there are still recommendations in the plan that are contrary to the City's position. In many instances, the changes incorporated in the plan have sufficiently addressed the City's concerns and, therefore, wouldnot necessitate a veto. Director Collins also distributed a spread- -1- 5003 CITY COUNCIL MEETING August 19, 2003 WORK SESSION: sheet itemizing areas in which the City still has concern, and he proceeded to review (Cont'd) those areas in detail. Based on a recommendation from Councilman Campbell and Director Collins, the following are recommended for veto or possible veto, based on Watershed Plan (Cont'd) final language: 3.4-13: Morse Creek flows; 3.5-3: Stormwater Management; 3.6-3 (3.4- 3): Land Use Plans and Codes; 3.8-2: Puget Sound Nearshore Project; 3.9-3: Section 7 Consultations; 3.14-7: Mitigation of Stormwater Impacts; and 3.16-2: Review Status of WRIA 18 Estuaries and Marine Shorelines. Director Collins also discussed areas where further clarifying discussions should be held with the participants, as some of the language is extremely broad. In responding to an inquiry from Mayor Wiggins, Director Collins indicated the process should be completed on September 4, 2003, and it is the City's position that any suggested language additions beyond that time should be introduced at a later date via an amendment process. After September 4th, the plan will be forwarded to the County Commissioners for public review. Any changes suggested by the Commissioners would be referred back to the planning group. Councilman Campbell addressed the matter of the Limiting Factors, providing an overview of their development by the individual agencies as relates to the condition of the streams that limit the reproduction of salmon and other species. Councilman Campbell felt there must be identification as to who will be responsible for completing the recommendations being proposed for retention; he was still concerned that the City would be held responsible for the recommendations beginning on Page 3.10-1. He indicated that many staffparticipants in the process have maintained that the document doesn't have any teeth and that the plan will be met based on funds available. However, the plan may have the force of the law on its side or, at the very least, could be as compelling as the Comprehensive Plan. Further, Councilman Campbell felt that, if the City were deemed to be out of compliance, then a court of law could force the City to meet the requirements of the plan. Lengthy discussion followed, with Councilman Campbell and Director Collins providing further clarification to the Council and answering questions specific to the plan. They asked for further direction from the Council, after which Councilman Headrick moved to accept the recommendations brought forward by Councilman Campbell and Director Collins on the various aspects of the EMMT report and continue to work on the language so that the City's best interests are financially protected. The motion was seconded by Councilmember Rogers. Councilman Williams expressed concern that the plan may serve to preclude the attraction of more development in the area because of various onerous aspects. Following limited discussion, a vote was taken on the motion, which carried unanimously. LATE ITEMS TO BE Mayor Wiggins noted the addition of a discussion on the UGA Sewer Connection as PLACED ON THIS OR Agenda Item D.6. FUTURE AGENDAS: Councilman Headrick informed the Council of citizen concerns expressed regarding dump truck traffic on the Tumwater Track Route, as well as signs relating to the use of jake brakes. He asked that the matter be brought before the Public Safety Committee, which was agreed to by the Council. Brenda London, 220 So. Oak Street, #4, informed the Council that she is new to the community and recently experienced a break-in at her apartment. The intruder stole her dog, and she later learned that the intruder was a convicted Level III sex offender who has not registered as required. Inquiring as to how the City intended to inform and protect the public from individuals such as this, Councilmember Erickson and Deputy Police Chief Gallagher addressed notification requirements and assured Ms. London the Police Department would take this matter seriously and pursue the registration of the sex offender. Deputy Chief Gallagher invited Ms. London to the lobby area to further discuss the matter. -2- CITY COUNCIL MEETING 5004 August 19, 2003 LATE ITEMS TO BE Dr. Todd Irwin, 253 Strait View Drive, distributed information to the Council on the PLACED ON THIS OR subject of fluoride and delivered a vote of confidence and support from an FUTURE AGENDAS: overwhelmingmajority of his patients and circle of friends. He spoke with concerned (Cont'd) citizens and health care providers, all of whom were not blind to what the Council might endure from a vocal minority. He indicated that Port Angeles is among less than one-third of Americans who do not have the benefit of fluoridated water. Dr. Irwin prepared a list of professional organizations, made up of PhD's and statisticians, that have endorsed water fluoridation efforts. He concluded there is a vast body of peer- reviewed literature that supports municipal water fluoridation. Paul Lamoureux, 602 Whidby, asked if the Council had any questions relative to information he previously distributed concerning a second exit out of eastern Port Angeles, as well as water concerns in general. Councilman Braun agreed with Mr. Lamoureux that a second exit is desirable, and he supported the importance of water as a commodity that must be protected. Mr. Lamoureux then addressed expenses incurred by the City for various projects and, in light of upcoming expenses for increased utility rates, fluoride, stormwater, a street utility, and a justice referendum, he asked the Council to assure maintenance of what the City already has in place and perhaps institute a moratorium on other projects. PUBLIC HEARINGS - Proposed Electric Rate Adjustment: OTI-IER: Public Works & Utilities Director Cutler advised the Council that the Utility Advisory Proposed Electric Rate Committee had endorsed Option I for an electric rate increase, to include an increased Adjustment consumption charge on all rate classes by $0.0031 per kWh and a deferment of any increase for the BPA Safety Net CRAC until April, 2004. He recommended the Council continue the public hearing and then direct staff as to how it should proceed. Break Mayor Wiggins recessed the meeting for a break at 7:05 p.m. The meeting reconvened at 7:20 p.m. Mayor Wiggins re-opened the public hearing at 7:20 p.m. Peter Ripley, 114 E. 6th Street, #102, shared a suggestion that, in conjunction with the landfill closure, it would be wise to build a power plant to convert waste into electric energy. He felt it would save money while, at the same time, it would create jobs. Director Cutler was asked for input, and he responded that past studies have deemed such an endeavor to not be particularly cost effective. In addition, many such efforts have not been able to meet air quality standards. Mayor Wiggins questioned whether Port Angeles would have sufficient volume to support a power plant. Paul Lamoureux, 602 Whidby, had conducted his own demographic study and determined that he represented 10% of the population when addressing the Council. To that end, he acknowledged Council and staff efforts to keep costs down while continuing to move the City forward. However, he pointed out that the City has the ability to move costs around within the realm of its budget in order to accommodate various expenses. Stressing that most people don't have that type of flexibility with their own money, Mr. Lamoureux cautioned the Council on the proposed increase. Mr. Lamoureux spoke in support of Option III which would draw on reserves to avoid any rate increase at this time. He was of the understanding that BPA may increase the rates, plus there is a projected reduction in 2006. Mr. Lamoureux indicated the City could still generate interest income for the reserves. Councilman Williams inquired as to how much of the reserves would be utilized under Option III as compared to Option I. Finance Director Ziomkowski and Power Systems Deputy Director McLain responded by explaining there is $1.7 million set aside in reserves for rate stabilization. There is $8.5 million overall in reserves, with $4.5 million intended as a minimum reserve for operations. $1.7 million would be spent down over a two-year period under Option III. Although rates are expected to drop somewhat in 2006, the City must still assure there is a minimum level in reserves at all -3- 5005 CITY COUNCIL MEETING August 19, 2003 PUBLIC HEARINGS - times. Director Ziomkowski cautioned against the use of too much of the reserves in OTHER: light of the debt ratio requirement. Mr. Lamoureux indicated that, if this were the only (Cont'd) issue being faced in the first six months of the year, then he could support Option I. However, he urged restraint in adopting the rate increase. Proposed Electric Rate Adjustment (Cont'd) Mayor Wiggins closed the public hearing at 7:42 p.m. Councilmember Erickson informed the Council that the Utility Advisory Committee endorsed Option I, as it supports a lower increase to the customer and also maintains an appropriate level of reserves. Councilmember Erickson moved to direct staff to bring a new rate ordinance reflecting Option I to a future City Council meeting for action. The motion was seconded by Councilman Campbell, who noted that Option I still leaves the City rates at $5 - $10 below what neighboring cities and utilities are paying for energy. Brief discussion was held on stepped rates, peak usage, and the east coast blackout. A vote was taken on the motion, which carried unanimously. FINANCE: 1. CSO Flow Monitoring Upgrades: CSO Flow Monitoring Public Works & Utilities Director Cutler explained the need for the CSO Flow Upgrades Monitoring upgrades, providing the City with real time data when there is a CSO event in keeping with new requirements associated with the NPDES permit. He noted the payback period for the new equipment would be two and one-half years; funds are being moved within the budget to accommodate the purchase. Following brief discussion, Couneilmember Eriekson moved to authorize the Mayor to sign a purchase order with Geotivity, Inc., for the RMI 1100 flow recorders in an amount not to exceed $34,500. Councilman Braun seconded the motion, which carried unanimously. Award Contract Electrical 2. Award Contract - Electrical Underground Rebuild, Elwha Line Stage 1: Underground Rebuild, Elwha Line Stage 1 Director Cutler reviewed the request for funding to commence Phase I of the Elwha Underground Rebuild, which is necessitated by an aging underground electric line that has failed once or twice per year over the last few years. To locate the problem and conduct repairs can take several days, and the number of failures is expected to increase quickly if the cables are not replaced. Director Cutler discussed the relocation of the trench in the Milwaukee Avenue fight-of-way in detail, and Councilmember Rogers indicated there had been a thorough discussion at the Utility Advisory Committee meeting, especially regarding utilities in a standard right-of-waylocation. Discussion followed concerning the City's program for conduit replacement, after which Councilman Braun moved to approve the allocation of additional funds from the Light Fund reserves in the amount of $70,000 and award and authorize the Mayor to sign the contract with Superior Electric Northwest, Inc., of Bothell, Washington, in the amount of $206,689.05, including sales tax. The motion was seconded by Councilmember Erickson, which carried unanimously. Property Lease and 3. Property Lease and Professional Services Contract - Historical Society: Professional Services Contract - Historical Manager Quinn briefly reviewed the $1.7 million restoration of the Carnegie Library Society building for the operation of a unique museum that would contain educational and technical components. Manager Quinn reviewed the salient points of the proposed lease and professional services contract, to include a 20-year term with renewal options established at multiple 1 O-year renewal terms. The rent is set for $1 per month due to the public benefit of the museum. Utilities are to be paid in full by the Historical Society, the Historical Society will be responsible for janitorial maintenance, and the City will be responsible for structural maintenance. Manager Quinn reviewed a clause in the lease for purposes of dispute resolution, and he summarized the various measurements by which the quality of the museum can be determined. He then reviewed the contract for Museum Development Services, inclusive of a subcontract between the Historical Society and Pacific Studio, noting that State and Federal funding -4- CITY COUNCIL MEETING 5006 August 19, 2003 Property Lease and had been obtained, a portion ofwhichis dedicated to help cover internal improvements Professional Services to the museum. Manager Quinn reviewed Phase I, Planning, and Phase II, Contract - Historical Construction, and indicated it is hoped the museumwill be open the summer of 2004. Society (Cont'd) He concluded by advising the Council that the Historical Society has reviewed and endorsed the contract. Mayor Wiggins departed the Council Chambers, so Deputy Mayor Campbell invited Frank Ducceschi to provide comments. Frank Ducceschi, 531 E. Ahlvers, President of the Clallam County Historical Society, advised the Council that the Society has been working with the City on this project for the past couple of years. They have been attempting to do their part by obtaining grant funds to offset some of the costs. He offered to answer any questions the Council mayhave. At this time, Mayor Wiggins returned to the Council Chambers. Manager Quinn indicated that one of the concerns related to this project is the investment of City funds into the renovation of the building and the associated question of how to maintain the museum and assure it will operate into the future. He was pleased to report that Clallam County has authorized an initial grant for the operation of the facility; it is hoped this type of support will continue into the future. Manager Quinn also expressed the hope that the gift shop will generate additional revenues. Discussion followed, and Councilman Headrick inquired as to whether there will be an admission fee. Mr. Ducceschi responded that, initially, an admission fee will not be charged, although it may be given future consideration. He was of the opinion that it is important to build an audience. He noted that the County has set aside $30,000 for the facility, and Councilman Headrick cited personal visits to other museums where an admission fee was charged and considered to be well worth the experience. Councilman Williams asked to verify the $1.2 million invested in the facility from the General Fund, and Councilmember Rogers indicated that was the figure discussed in Finance Committee. Councilman Williams expressed concern that, after such an extensive City investment, there will only be a return of $12 per year, plus the City is responsible for cutting the grass. He inquired as to whether the underground would receive the same type of consideration when that matter receives future review. Manager Quinn indicated the City's ability to move forward on this project was based on CFP funding over the past two years, a commitment made by the Council in order to proceed. Funding for other projects of this nature would be subject to Council approval. CouncilmemberRogers, as a member of the Finance Committee, stated her support for the Carnegie project; however, she expressed similar concern with the amount of money spent from the General Fund. She felt that due diligence must assure that the facility draws tourism so the Historical Society can maintain its funding; the Carnegie building is an asset being given back to the entire community, not just Port Angeles. It is another example of a facility, located in Port Angeles, from which the entire County benefits. Councilman Campbell referenced a breakdown of the project's funding sources, to include $112,000 from the Washington State Heritage Grant, $298,000 from the Federal Save America's Treasures Grant, and $50,000 from the Walkling Trust. The Save Americas Treasures Grant was secured through the assistance of the Historical Society, plus Councilman Campbell noted the transfer of $400,000 from the North Olympic Library System as part of the bond for the library. Councilman Braun felt, as a member of the Historical Society, that this is a positive step for the community and for the Historical Society. He urged the Council to support passage of the proposed lease and operations agreement. Further discussion ensued, and Councilman Williams noted he was not opposed to the Carnegie project, but in voting to support, he asked for a future quid pro quo as relates to support for the underground tours. Councilman Headrick referenced past discussions where it had been suggested that volunteers be sought to assist with the care of City parks in that the -5- 5007 CITY COUNCIL MEETING August 19, 2003 Property Lease and Parks Depm:~nent is understaffed and overworked. To that end, he inquired as to Professional Services whether the Historical Society would be willing to accept responsibility for the lawn Contract- Historical and outside shrubs. Mr. Ducceschi indicated they will need between 60 and 80 Society (Cont' d) volunteers just to operate the museum, but he offered to discuss the suggestion with the Society's Board of Directors. Councilman Braun, offering further support, indicated his willingness to assist with yard maintenance if need be, and Councilmember Rogers reminded everyone that it is the General Fund budget that supports projects such as this. Accordingly, Councilman I-Ieadrick moved to approve the contract as presented with the Clallam County Historical Society, provided it be amended to the extent that the I-Iistorieal Society would be responsible for the outdoor lawn and garden maintenance. The motion was seconded by Councilman Braun. Discussion ensued with consideration being given to those portions of the contract that would require amended language based on the pending motion. Manager Quinn advised the Council that the landscaping would be fairly modest. Councilmember Erickson advocated that the Council proceed with the contract as written and address the care of the landscaping at a later date. She felt that professionals must be used to maintain the exterior in order to assure a professional appearance at all times. Mr. Ducceschi indicated the Historical Society would like to spend its time and energy making the museum as successful as possible, but he indicated a willingness to further discuss this with the Board and the City. Councilmembers Rogers and Headrick felt it would be a small concession. Attorney Knutson directed the Council's attention to a minor change in the language of the contract regarding ownership of thc exhibits in that if the Historical Society were to cease operations in the City, then the exhibits would become the property of the City. Councilman Campbell expressed concern with the way the issue of landscape maintenance has been handled at the last minute; he felt it to be unfair to the Historical Society and preferred that the issue be resolved outside the contract. Councilmember Erickson called for the question, and Councilman Williams subsequently moved to table the matter. Because the question had been called, a vote was taken on the motion, with Councilmembers Williams, Rogers, and Iteadriek voting in support of the motion, and Mayor Wiggins and Councilmembers Braun, Erickson, and Campbell voting in opposition. The motion, therefore, failed. Councilmember Erickson moved to adopt the contract as presently written. The motion was seconded by Councilman Braun and carried by a majority vote, with Councilmembers Rogers, Williams, and Headrick voting in opposition. Accept Federal 4. Accept Federal Government Grant for Carnegie Library: Government Grant for Carnegie Library Director Cutler reviewed the Federal Save America' s Treasures Grant, a grant that was secured by the Clallam County Historical Society to aid in funding the Carnegie restorationproject. Director Cutler referenced a handout he had just distributed, having to do with two conditions that are party to acceptance of the grant. One condition stipulated that any press releases about the project must acknowledge the grant assistance provided by the National Park Service, and the other condition specified that HPF grantees must agree to assume, after completion of the project, the total cost of continued maintenance, repair, and administration of the grant-assisted property in a manner satisfactory to the Secretary of the Interior. Director Cutler did not feel the conditions were a major issue, and Manager Quinn clarified that the building must be preserved with the historical look for 50 years. Discussion followed concerning the possibility of the facility being listed on the National Registry of Historical Places. Although Director Cutler felt it would notbe likely that it would be listed, an application will be submitted nevertheless. ' After further brief discussion, Councilman Campbell moved to accept the Federal Save America's Treasures Grant in the amount of $298,000 and authorize the Public -6- CITY COUNCIL MEETING 5008 August 19, 2003 Accept Federal Works & Utilities Director to sign the grant agreement with the National Park Government Grant for Service. The motion was seconded by Councilmember Erickson and carried Carnegie Library (Cont'd) unanimously. Purchase of Conservation 5. Purchase of Conservation Agreement Amendment: Agreement Amendment Director Cutler briefly reviewed the Purchase of Conservation Agreement amendment, noting this is a program that Daishowa could pursue as the City would be permitted to give reimbursements for industrial energy savings. Councilmember Rogers moved to authorize the Director of Public Works & Utilities to sign the Purchase of Conservation Agreement Amendment with the Bonneville Power Administration. Councilman Williams seconded the motion, which carried unanimously. Break Mayor Wiggins recessed the meeting for a break at 8:45 p.m. The meeting reconvened at 8:55 p.m. UGA Sewer Connection 6. UGA Sewer Connection: Manager Quinn had distributed copies of an informational memorandumon the matter of the UGA sewer. He had originally intended to submit a verbal update on the UGA sewer but, in light of PUD's movement toward a petition, he felt it would be helpful to have discussion on the matter. Manager Quinn reviewed a meeting held recently with representatives of the County, PUD, EDC, City, and Chamber of Commerce to discuss the possibility of extending sewer services into the eastern UGA. He indicated that, at a staff level, discussions have centered around the City being an equal partner so that the project can move ahead in terms of determining the route, preliminary costs, and the like. It is anticipated that the City would accept the waste into the Wastewater Treatment Plant, as any other option would likely be too costly for the County or the PUD. Manager Quinn identified issues that should be considered from a policy perspective, one of which has to do with the rating of the UGA sewer infrastructure as the Itl project on the WACERT application list. He indicated that $100,000 has been set aside at the City and County to move forward with engineering and information gathering for the project. Councilmember Rogers clarified that WACERT involves many other agencies through the EDC. Manager Quinn agreed, noting the second issue for consideration is that a scope of services for an engineering and feasibility study is not known at this time. Nevertheless, he has estimated the City's share in the study at $15,000, plus the City set aside $25,000 in 2003 and $75,000 in 2004 for the project in terms of supporting the preliminary engineering study. It is hoped these funds will help leverage other funding for theproject. Manager Quinn further indicated that the main line for the sewer would be sized to meet the anticipated capacity; however, it is not known whether plans should include extension of the infrastructure to the Deer Park area. Financing in this regard must be addressed, as the governmental agencies may need to be involved along with the property owners. Although the sewer line would be built to City standards, Manager Quinn indicated it would be likely that the PUD would build the sewer line. In addition, he identified another issue to be considered in the form of a revenue-sharing agreement. Future development due to the infrastructure provides a revenue yield to the County that would not have been enabled absent the City's participation. Also, the PUD would likely request consideration by the City of the 50% surcharge added to the utility rate for services outside the City limits. A reduction in the surcharge would negate any financial incentive for future annexation and would reduce the investment return for capital capacity at the treatment facility which is paid for by City rate payers. Manager Quirm felt it is timely to reaffu'm the City is moving in the right direction, and that the City would be the repository for the sewage from the UGA. -7- 5009 CITY COUNCIL MEETING August 19, 2003 UGA Sewer Connection Russ Veenema, Chamber of Commerce, advised the Council this has been a gratifying (Cont'd) project in which to be involved. He stressed that, in all of the meetings held, the primary consideration has been that this must be a win-win situation for all participants. It is understood that the City must be fiscally responsible, and there must be a payback to the City when viewing the future of the project. It is felt this project will prove to be a benefit to the entire area, as it will clean up the east entrance to the City and it will enable increased property values as well as improved and expanded businesses. Discussion followed, and Councilman Williams inquired as to whether, in view of the new business that would be generated, there is a revenue-sharing agreement in place and, if not, where the incentive wouldbe for City involvement in the project. Manager Quinn indicated there is no such agreement at this time, and Mr. Veenema indicated the incentive is to keep the project going in order to determine the costs involved and to then determine if it makes sense for the City. Mayor Wiggins felt this is a very open and objective approach, and he asked for further clarification on the $15,000 expenditure. Manager Quinn stated that, once the feasibility study is complete, the next major step is design and engineering, which will be much more expensive and should be borne by the LID property owners or worked into the costs of construction. Mayor Wiggins asked if there is a County match of the $15,000, and Manager Quinn understood the County and the PUD would each pay $15,000 but the PUD's participation has not been confirmed. Dan Engelbertson, County Administrator, advised the Council that the County had budgeted $100,000 for a feasibility study and pre-engineering in anticipation o fmoving forward with this project. Councilmember Rogers asked if the PUD has committed to a portion of this preliminary study, and Mr. Engelbertson felt it is the PUD's intent to move forward with a commitment of funding with a 1/3 split. Councilmember Rogers discussed the history of the annexation discussions and the associated extension of utilities. Since that time, the City has been given the message that the entire community in the eastern UGA does not wish to be annexed. She questioned the use of City funds for an area that will likely not be annexed for a long time. She felt it important to respect the position of the UGA residents not wanting annexation and not seeing the value of all City services. She questioned the value to the City of Port Angeles. Councilman Campbell appreciated the fact that this project would be good in terms of economic development for the entire area, but he felt the reality of the situation is that annexation will not occur. He observed that property values would rise, tax revenues would increase, and the County would benefit from those circumstances. He acknowledged there may be some trickle-down benefit to the City but, in view of the City contribution, there would be little benefit to the City. However, Councilman Campbell chose not to hold up the project in terms of determining what the values mightbe to the City. Mayor W~gg/ns asked what the feasibility study ~vould entail, and Manager Quinn anticipated it would provide a preliminary route for the sewer line and would determine the number of parcels and amount ofexpectedparticipation. It should also include the rough costs for the overall project and the projected costs to the individual participants. Mr. Engelbertson added that it is important to avoid an expensive study, but it is necessary to identify whether there will be sufficient revenue and a sufficient number of parcels. As a City resident and taxpayer, he would expect the Council to evaluate all costs concerning the capitalization of the Wastewater Treatment Plant and to be certain there is benefit to the City. Mayor Wiggins expressed the opinion that certain questions will be left unanswered if a feasibility study is not conducted. CounciimanHeadrick felt the feasibility study could be used for City benefit, as the Urban Growth regulations establish that, when areas are in need of City utilities, there is an expectation that a petition will come before the City for annexation. If it is intended that the City should only process sewage for the UGA, then it would be appropriate to attempt annexation of the area using the City's services. Should the City provide services without annexation, then it can be expected that annexation will never occur. Councilman Headrick also pointed out that this project -8- CITY COUNCIL MEETING 5010 August 19, 2003 UGA Sewer Connection could have a substantial impact on the City in that businesses currently located in the (Cont'd) City could opt to move to the UGA, thus resulting in the loss of a tax base. Councilman Braun pointed out that, if very few businesses were to connect to the sewer line because of escalating costs, then the citizens of Port Angeles would be paying for the expensive infrastructure. Mayor Wiggins felt that, if the infrastructure is built, then the City will make money that it otherwise would not have made. Councilman Headrick expressed a willingness to proceed with the feasibility study in order to assist in the decision-making process, and Councilmember Rogers indicated that everyone wants to £md a solution, as it is irresponsible to allow development without sewer. She emphasized, however, that the extension of a sewer line would not necessarily improve the aesthetics of the area. Councilman Williams indicated he would support the feasibility study, but only if there were a 50-50 revenue-sharing agreement for participation in the new business generated. Mayor Wiggins asked how such a position could be taken without first knowing the costs. Lengthy discussion and debate ensued, and Councilmember Rogers noted the tremendous effort put forth by the City staff on the matter of annexation. She felt this must be a win-win situation, but to spend a lotofmoney outside the City limits is not being fair to current residents who are asking for assistance in such areas as storm drainage. Again, Mayor Wiggins questioned how the project could proceed if the City isn't at least willing to participate in the feasibility study. He felt someone must step forward and do something positive. Manager Quinn suggested the possibility of marrying the two issues, revenue sharing and a feasibility study, for discussion purposes. Russ Veenema agreed that a feasibility study is intended to assimilate all of the information, and he suggested the cost of the feasibility should be identified to determine if efforts should proceed beyond that point. Councilmember Erickson questioned why the City should pay for a feasibility study to identify what costs would be borne by others. She did, however, feel there would be some benefit to the Cityin spite of not having a revenue-sharing agreement. Russ Veenema supported Manager Quinn's earlier suggestion by agreeing that the true cost of the feasibility study should be identified, and Manager Quinn indicated this effort goes to the issue of agencies working together to solve land use and environmental issues. Councilman Headrick stated he could support the feasibility study, but he stressed the fact that the associated questions must be hypothetical. Councilmember Rogers expressed concern that the City would be held out as the "bad guy". Mayor Wiggins and Councilman Campbell spoke in support of determining the scope and cost of the feasibility study before proceeding. After further discussion, Councilman Headrick moved to c0,~ionu~t~hs:t~no issue and come back with figures on the cost of the feasibility study~{51~ ~ survey questions would look like. Councilmember Rogers seconded the motion, which carried unanimously. CONSENT AGENDA: Councilmember Erickson moved to accept the Consent Agenda, to include: 1.) City Council Minutes of August 5, 2003; 2.) Expenditure Approval List - August 8, 2003 - $519,144.95; 3.) Electronic Payments - August 8, 2003 - $1,023,104.00; 4.) High School Resource Officer Agreement Program with Port Angeles School District #121; and 5.) Travel Exceeding $1500 - City Attorney's Office. The motion was seconded by Councilman Braun and carried unanimously. OTHER 1. Agreement Amendment with Port Angeles Chamber of Commerce for 2003 CONSIDERATIONS: Tourist Information and Promotion Services: Agreement Amendment Economic Development Director Smith introduced the matter of amending the current with Port Angeles Chamber agreement with the Chamber of Commerce for tourist information and promotion of Commerce for 2003 services. The request before the Council is to increase the 2003 contract by $100,000. Tourist Information and Mr. Smith provided the history of the current agreement, explaining that the requested Promotion Services funding would come from the set aside of $100,000 per year for a conference center. -9- 50][ ][ CITY COUNCIL MEETING August 19, 2003 OTHER He indicated the City has not entered into an agreement with Randal Ehm, as the City CONSIDERATIONS: is awaiting a financial agreement for the conference center which is currently delayed due to pending litigation. If negotiations with Mr. Ehm were to be finalized, then Agreement Amendment $200,000 wouldbe placed in escrow subject to completion of the project in a specified withPort Angeles Chamber period of time. At the end of 2003, there would be an extra $100,000 to either use or of Commerce for 2003 retain in reserves, and the Lodging Tax Advisory Committee had asked that it be Tourist Information and allowed to direct that money to the Chamber of Commerce for additional marketing. Promotion Services (Cont'd) Mr. Smith advised the Council that the Chamber of Commerce has done an excellent job in marketing, but it is essential that the increased number of room nights be tracked in association with the marketing investment, especially during the shoulder and off- season periods. He indicated there will be increased reporting to the City with regard to occupancies as well as how the funds are spent. Copies of the Chamber's proposed expenditures were distributed for review, and Russ Veenema, Chamber of Commerce, reported that $72,000 of the $100,000 has been committed. He reviewed in detail the different expenditures being proposed for the Council's consideration. Mayor Wiggins observed that it took several years to obtain the commitment of$100,000 per year for capital, but Councilmember Rogers indicated she had tried to protect that funding by dedicating a given percentage annually for capital purposes. Discussion followed, and Councilmember Erickson expressed a preference to fund the cleaning up of ballfields and to fired capital projects, and Councilmember Rogers was uncertain as to whether advertising would be in synch with the special events scheduled for this fall. Mr. Veenema discussed the significant increases in web hits when a major advert/sing campaign takes place. He felt there is significant value in the advertising efforts. Councilman Campbell, as Chair of the Lodging Tax Advisory Committee, discussed the balancing of capital with marketing, as there are members of the committee who are concerned about the recent decline of heads in beds. He suggested the committee should be given credibility so that we can continue to get what is being sought for capital funding. Mr. Smith indicated the lodging tax process has improved significantly over the past few years, and the question must be asked as to whether the City has seen any improvement in performance. Efforts are underway to develop a track record in order to answer that question. He cautioned against micro-managing and urged the Council to stay on point so that the success of the marketing can be monitored. After further discussion on the merits of special events, as well as the events and tournaments , planned by the Parks & Recreation Department, Councilman Williams moved to shift · ' $100,000 of Lodging Tax funds into an account to be used by the Chamber of Commerce, releasing $72,000 with the remaining $28,000 to be determined upon presentation of the results of the $72,000 expenditure. The motion was seconded by Councilmember Rogers and carried unanimously. Arla Holzschuh, Executive Director of the Port Angeles Downtown Association, thanked the Council for its vote. The PADA had requested up to $20,000 of that $100,000 amount to be used toward the purchase of three sculptures valued at $86,000 for the Art on the Town project. She announced that the PADA is just $200 shy of $19,000 at this time. Stormwater Utility 2. Stormwater Utility Formation Discussion: Formation Discussion In view of the lateness of the hour, Councilmember Rogers moved to table the discussion on a Stormwater Utility to the next meeting of the City Council. Councilman Headrick seconded the motion, which carried unanimously. Vision, Goal and 3, Vision, Goal and Objectives Statement: Objectives Statements CouncilmemberRogers moved to table the Vision, Goal and Objectives Statement - 10- CITY COUNCIL MEETING 5012 August 19, 2003 Vision, Goal and to the next meeting of the City Council. Councilman Williams seconded the Objectives Statements motion, which carried unanimously. (Cont'd) CITY COUNCIL Because of the lateness of the hour, the Council agreed to defer any reports to a future COMMITTEE meeting. REPORTS & CALENDAR: ORDINANCES NOT None. REQUIRING PUBLIC HEARINGS: RESOLUTIONS: None. PUBLIC HEARINGS - None. QUASI-JUDICIAL: INFORMATION: No discussion was held pertinent to the items on the Information Agenda. EXECUTIVE SESSION: The meeting adjourned to Executive Session at 10:30 p.m. to consider labor negotiations for approximately 15 minutes. RETURN TO OPEN The meeting returned to Open Session at 10:50 p.m. SESSION: ADJOURNMENT: The meeting was adjourned at 10:50 p.m. Glenn Wiggins, Mayor Be~'~y i. Upt°l~ity~erk 1- - -11-