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HomeMy WebLinkAboutMinutes 09/15/2009• CALL TO ORDER - REGULAR MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: PUBLIC CEREMONIES/ PRESENTATIONS & EMPLOYEE RECOGNITIONS: Constitution Week Proclamation PUBLIC COMMENT: WORK SESSION: LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: Water and Wastewater Utility Revenue Bond Refunding Ordinance No. 3375 CITY COUNCIL MEETING Port Angeles, Washington September 15, 2009 Mayor Braun called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. Members Present: Mayor Braun, Deputy Mayor Wharton [arrived at 6:02 p.m.], • and Councilmembers Di Guilio, Kidd, Rogers, and Williams. Members Absent: Councilmember Perry. Staff Present: Acting Manager & Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, Y. Ziomkowski, T. Pierce, and K. Neal. Public Present: P. Menning, C. Lucero, and M. Kesl. All others present in the audience failed to sign the roster. The Pledge of Allegiance to the Flag was led by Councilmember Di Guilio. 1. Constitution Week Proclamation Mayor Braun read a proclamation recognizing the week of September 17` through September 23, 2009 as Constitution Week. The proclamation was presented to Kay Garrison, Regent of the local chapter of the Daughters of the American Revolution. Shawn Dawson, 1012 W. 9` St., addressed the Council. He represented Readers Theater Plus Organization and informed Councilmembers ofa documentary they were presenting. None There were no late items added to the agenda. 1. Water and Wastewater Utility Revenue Bond Refunding Director Ziomkowski introduced Bond Financial consultant Steve Gaidos with Gaidos Consulting; Bond Attorney David Thompson from K &L Gates LLP; Bond Underwriter Lindsay Sovde from Seattle Northwest Securities Corporation; and City staff. She explained that the Bond refunding process started in February, including regular monitoring of market conditions since that date, and that current interest rates are favorable. She used PowerPoint slides to present information on the Bond refunding, explaining that interest rates are expected to rise so now is a good time to refinance the Bond. She stated that the Bond par amount was for $7,590,000, and the maturity date is still November 1, 2024. Net interest cost will be 3.54 %, with an average annual payment that is down to $670,000, creating an overall savings of $567,575. She recommended 6514 6515 CITY COUNCIL MEETING September 15, 2009 ORDINANCES NOT REQUIRING PUBLIC HEARINGS: (Cont'd) Water and Wastewater Utility Revenue Bond Refunding Ordinance No. 3375 (Cont'd) Break Establish Stormwater Utility Fund Ordinance No. 3376 RESOLUTIONS: OTHER CONSIDERATIONS: State Auditor's Letter to Councilmember Kidd that the Council waive the second reading and adopt the Bond Ordinance. She distributed a memo from Steve Gaidos describing the savings based on today's rates inviting questions from Council. Following brief discussion, Mayor Braun read the Ordinance by title, entitled AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of Water and Wastewater Utility revenue refunding bonds of the City in the principal amount of $7,590,000 to refund outstanding Water and Wastewater Utility revenue bonds; fixing the date, form, terms, maturities and covenants of such bonds; and authorizing the sale of such bonds. Deputy Mayor Wharton moved to waive the second reading. The motion was seconded by Councilmember Kidd. A vote was taken on the motion, which carried unanimously. Councilmember Rogers moved to adopt the Ordinance as read by title. The motion was seconded by Councilmember Kidd. A vote was taken on the motion, which carried unanimously. Mayor Braun recessed the meeting for a break at 6:22 p.m. The meeting reconvened at 6:31 p.m. 2. Establish Stormwater Utility Fund Mayor Braun conducted a second reading of the Ordinance by title, entitled ORDINANCE NO. 3376 Deputy Mayor Wharton moved to adopt the Ordinance as read by title, and Councilmember Di Guilio seconded the motion. A brief discussion ensued regarding City personnel costs and property tax collection by the County. A vote was taken on the motion, which carried unanimously. None AN ORDINANCE of the City of Port Angeles, Washington, creating a fund for the administration, maintenance and operation of the Stormwater Utility, and adding a new section, 3.34, to Chapter 3 of the Port Angeles Municipal Code. 1. State Auditor's Letter to Councilmember Kidd. Councilmembers Rogers referenced the Council's receipt of a letter sent by the State Auditor's office to Councilmember Kidd. The letter was in response to a letter from Councilmember Kidd having to do with the HarborWorks investigation. Councilmember Rogers asked for an explanation of the situation, and she asked that a copy of Councilmember Kidd's letter be provided to the Council. Councilmember Kidd explained that Deputy Mayor Wharton had been interviewed by the State Auditor. Feeling that she and the other Councilmembers should have been interviewed as well, Councilmember Kidd contacted the State Auditor expressing concern with the apparent lack of thoroughness in the investigation. Lengthy discussion ensued regarding Councilmember Kidd's failure to communicate with the full Council before contacting the State Auditor, Councilmember Kidd's prior vote in opposition to HarborWorks, and the need for the Council to work together as a team. Councilmember Kidd agreed to provide a copy of her letter to the Council. ORDINANCE NO. 3375 CONSENT AGENDA: FINANCE: Post Closure Landfill Consultant Agreement Amendment No. 1 PUBLIC HEARINGS - 1. Walker Subdivision QUASI- JUDICIAL: Walker Subdivision Ordinance No. 3377 CITY COUNCIL, MEETING 6516 September 15, 2009 Councilmember Di Guilio moved to accept the Consent Agenda, to include: 1.) City Council Regular Meeting Minutes of September 1, 2009; 2.) Expenditure Approval List from 8/22/09 to 9/4/2009 for $2,037,315.90; 3.) Sub - Recipient Agreement with Habitat for Humanity; 4.) Set public hearing for Utility Retail Rate and Fee Adjustments; 5.) Bonneville Power Administration Power Sales Agreement Amendment No. 1; 6.) Bonneville Power Administration Energy Conservation Agreement; and 7.) Western Public Agencies Group (WPAG) Consulting Agreement Amendment No. 1. Councilmember Rogers mentioned that she was not at the September 1, 2009 Council meeting so she would not be voting to approve the Consent Agenda. Deputy Mayor Wharton seconded the motion; A vote was taken on the motion, which carried 5 -0, with Councilmember Rogers abstaining. Attorney Bloor informed Council of minor clerical changes to the September 1, 2009 Council minutes. Councilmember Williams addressed a reading error regarding the TIGER grant approval from the September 1, 2009 Council meeting. Council concurred that the amount was in the millions not in the thousands, and agreed to the restatement of the amount. 3. Post Closure Landfill Consultant Agreement Amendment No. 1 Engineering Manager Neal explained that the agreement with Aspect Consulting services provides engineering services in support of the Port Angeles Landfill Post - Closure Permit requirements, starting in October of 2008. She addressed the amendment and explained that it authorized additional costs for 2009 and extended the agreement through 2010. Director Cutler added that this amendment was discussed at the UAC meeting, and they supported the amendment. Deputy Mayor Wharton added the requirements for monitoring have changed, increasing overall costs. Deputy Mayor Wharton moved to approve and authorize the Mayor to sign Amendment No. 1 to the Consultant Agreement with Aspect Consulting for Landfill Engineering in an amount not to exceed $12,000 in 2009 and $115,100 in 2010, which increases the maximum compensation under the agreement from $58,000 to $185,100, and authorize the City Manager to make minor modifications to the agreement, if necessary. The motion was seconded by Councilmember Di Guilio. A vote was taken on the motion, which carried unanimously. Break Mayor Braun recessed the meeting for a break at 6:54 p.m. The meeting reconvened at 7:00 p.m. Director West presented the alteration of the Walker Estates subdivision. He reminded Council that this was a Quasi- Judicial matter, and that Council had granted preliminary approval for the alteration on May 19, 2009. He explained that the alteration included reducing the number of lots, and infrastructure modifications. He recommended that Council approve the alteration, and conduct the public hearing. A short discussion ensued regarding setbacks, lot size, and environmentally sensitive areas. Mayor Braun opened the public hearing at 7:03 p.m. There being no testimony, the public hearing was closed at 7:03 p.m. Mayor Braun read the Ordinance by title, entitled ORDINANCE NO. 3377 AN ORDINANCE of the City of Port Angeles, Washington, approving the 19- lot Walker Estates Plat Alteration subdivision in the RS -11 zone. Deputy Mayor Wharton moved to adopt the Ordinance as read by title, citing Condition 1, Findings 1 - 6, Conclusions 1 - 3, and moved to authorize the Mayor 6517 CITY COUNCIL MEETING September 15, 2009 PUBLIC HEARINGS - QUASI-JUDICIAL: (Cont'd) Walker Subdivision Ordinance No. 3377 (Cont'd) PUBLIC HEARINGS - OTHER: Lucero Street Vacation FINANCE: (Cont'd) Bonneville Power Administration Wholesale Power Rate Adjustments to sign the Mylar. The motion was seconded by Councilmember Di Guilio. More discussion followed regarding: corrections to the Ordinnce, 50 -foot set backs, and lot size. Councilmember Rogers mentioned that this was a Quasi- Judicial matter and that Council had previously qualified on this matter. A vote was taken on the motion, which carried unanimously. 1. Lucero Street Vacation Councilmembers Williams and Rogers recused themselves due to possible conflicts of interest. Director West presented a Street Vacation for a portion of Vine Street, citing 30 feet to be vacated as well as mentioning that similar vacations have occurred in the area to the north and south. He explained that the Council had been provided with a revised Ordinance, with findings and conditions. He requested Council conduct the public hearing, as well as the first reading of the Ordinance. Mayor Braun opened the public hearing at 7:09 p.m. Patricia Menning, 518'/2 Lopez Street, recommended that Ms. Lucero be granted her part of the property without any charge, because she had maintained the property so well, and the City had previously granted property to the newer residents. Cathy Lucero, 509 Whidby Avenue, explained that her house is the oldest house in the neighborhood, and she never knew there was an encroachment on the Right of Way, until she tried to build a garage. She stated that she just wants to clear the title to her house. Patti Toth, 437 Lopez Street, testified in favor of granting the street vacation to Ms. Lucero at no charge. She asked Councilmembers to remember this street vacation when she raises her own petition again. Mayor Braun closed the public hearing at 7:15 pm. Mayor Braun conducted a first reading of the ordinance by title, entitled ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, vacating a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2 " Addition to the Townsite of Port Angeles, in Clallam County, Washington. 1. Bonneville Power Administration Wholesale Power Rate Adjustments Director Cutler informed Council that, at the last UAC meeting, it was recommended to accept the BPA's 7% rate increase, effective October 1, 2009, rather than use the stepped - rate option over the next two years. He explained that overall it would save the City money, but that it also would increase the wholesale power purchases through BPA by approximately $1.8 million. Councilmember Rogers explained that she voted against this recommendation at the UAC meeting because of the economy. She encouraged the drafting of a letter to the Governor and Senator Cantwell outlining the effects of a rate increase on the local economy as well as asking for relief to help offset the BPA increase. Lengthy discussion ensued regarding attendance of Councilmembers at the UAC meetings, not accepting the rate increase, and drafting letters to the Governor and Senator Cantwell. Councilmember Rogers expressed that she would support the rate increase, if submitting the letters was included in the motion. Councilmember Di Guilio moved to accept the Bonneville Power Administration's posted wholesale power rates, to send letters to the Governor and Senator Cantwell, and authorize the City Manager to sign the FINANCE: (Cont'd) Bonneville Power Administration Wholesale Power Rate Adjustments (Cont'd) Northwest Energy Efficiency Alliance (NEEA) Contribution Low Income Home Heating Energy Vendor Agreement INFORMATION: CITY COUNCIL COMMITTEE REPORTS: EXECUTIVE SESSION: ADJOURNMENT: 2. Northwest Energy Efficiency Alliance (NEEA) Contribution CITY COUNCIL MEETING 6518 September 15, 2009 documents. The motion was seconded by Councilmember Williams. A vote was taken on the motion, which passed unanimously. Director Cutler explained that the amount of unspent dollars in the Conservation Rate Credit program could be contributed to NEEA, or must be returned to the BPA. He projected $125,000 to $150,000 as a residual balance as of September 30, 2009. He mentioned that this issue was discussed at the recent UAC meeting and they approved the recommendation to contribute to NEEA. He explained the benefits of contributing the money would include a credit towards the City's upcoming Tiered -Rate, permitting the City to purchase more Tier 1 power, versus Tier 2. Councilmember Williams recused himself, citing his contract with Peninsula College as a possible conflict of interest. Deputy Mayor Wharton moved to authorize a contribution to the Northwest Energy Efficiency Alliance in an amount up to $150,000, and authorize the City Manager to sign the documents. The motion was seconded by Councilmember Di Guilio. A vote was taken on the motion, which carried 5 -0, with Councilmember Williams abstaining. 4. Low Income Home Heating Energy Vendor Agreement Director Cutler reviewed the process through which the City receives and distributes funds for. the Low Income Home Heating Energy Program, that is administered through OLYCAP. Councilmember Di Guilio explained that he was no longer an employee of OLYCAP. Councilmember Di Guilio moved to authorize the City Manager to accept the 2009 Low - Income Home Heating Energy Vendor Agreement with Olympic Community Action Programs, and authorize the City Manager to sign the appropriate documents. The motion was seconded by Councilmember Rogers. Councilmember Williams recused himself citing his contract with Peninsula College. A vote was taken on the motion, which carried 5 -0, with Councilmember Williams abstaining. Attorney Bloor reminded Council of the September 29 budget meeting. Director West informed Council of a HarborWorks meeting regarding presentations by himself, Bill White, City Archeologist Beery, and Engineering Manager Neal. Deputy Mayor Wharton reported on the Puget Sound Partnership meeting. Councilmember Kidd reported on the exit interview for the Financial Audit, complimenting staff on an audit with no findings. Further discussion followed regarding the next few Council meeting dates and times, with Mayor Braun requesting that a written clarification be sent to Council. None The meeting was adjourned at 7:40 p.m. Gary Braun 1 V yor Janes urd, City Clerk