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HomeMy WebLinkAboutMinutes 09/16/1997 3547 CITY COUNCIL MEETING Port Angeles, Washington September 16, 1997 CALL TO ORDER - Mayor Ostrowski called the regular meeting of the Port Angeles City Council to order at REGULAR MEETING: 7:05 p.m. ROLL CALL: Members Present: Mayor Ostrowski, Councilmembers Braun, Campbell, Doyle, Hulett, McKeown, and Wiggins. Mem bets ,4 bsent: None. Staff Present: Acting Manager Brodhun, Attorney Knutson, Clerk Upton, B. Becket, S. Ilk, J. Pittis, B. Titus, G. Kenworthy, and D. Sawyer. Public Present: B. Love, L. Williams, and M. Gentry. PLEDGE OF The Pledge of Allegiance to the Flag was led by Mayor Ostrowski. ALLEGIANCE: APPROVAL OF Councilman Braun moved to approve the minutes of the regular meeting of MINUTES: September 2, 1997. Councilman Hulett seconded the motion. Councilmember McKeown noted that Page 3 of the minutes referenced the Veteran's "acquisition'' of the Carnegie Library. She felt the better word would be "availability" and asked that the minutes be changed accordingly. A vote was taken on the motion, which carried unanhnously. CEREMONIAL None. MATTERS/ PROCLAMATIONS: FINANCE: Bid Award for Sidewalk Project Bids for Sidewalk Project Mayor Ostrowski reviewed the information provided by the Public Works Department. Councilman Wiggins moved to accept the bid from Lakeside Industries and authorize the Mayor to execute the construction contract. Councilmember McKeown seconded the motion. Councilman Hulett asked if sidewalks would be placed on both sides of the street, and Public Works Director Pittis and City Engineer Kenworthy explained where the new sidewalks would be placed. Director Pittis identified the specific area involved in this project; work should commence in approximately fli~een days. A vote was taken on the motion, which carried unanimously. CONSENT AGENDA: Councilman Braun moved to accept the Consent Agenda, including: 1) WWTP Outfall Diffuser, Project 095-09, Payment #1 and Change Order # 1; 2) Payroll - September 7, 1997- $356,025.14; 2) Voucher list - September 12, 1997 - $612,231.11. -1- 3548 CITY COUNCIL MEETING September 16, 1997 CONSENT AGENDA: Councilmember McKeown seconded the motion. Following brief discussion, a vote (Cont'd) was taken on the motion, which carried unanimously. ITEMS FROM THE Rick Hert, 3909 Nygren, Executive Director of the North Olympic Peninsula Visitor & AUDIENCE/COUNCIL/ Convention Bureau, informed the Council of an upcoming event called "The Big Hurt", an STAFF TO BE event for "Pier to Ridge to Shore by Foot, Bike and Oar". Mr. Heft explained the nature ' CONSIDERED OR of the event, noting about 100 people have registered to participate of which 95% are fi-om PLACED ON A out-of-town. Mr. Hert distributed pocket knives t9 the Council, a marketing tool imprinted FUTURE AGENDA: with the VCB Website address. Mayor Ostrowski reminded the Council of the upcoming Story Telling Festival being held this weekend. He encouraged attendance at these events. ~ember McKeown pointed out that minutes of the Downtown Forward Executive Committee meeting had been placed in Council's mailboxes. The Committee is taking very seriously the task of participating in the Hotel/Motel Tax allocation process and will keep the Council informed of its discussions. Councilman Wiggins asked to have a brief discussion of Senator Gorton's position regarding Elwha Dam removal. This was added as Item 6 under Other Considerations. Councilmember McKeown reminded the Council that she and Councilman Hulett had been appointed to the Youth Task Force. However, Councilman Hulett is unable to attend the meetings and asked for a volunteer to fill that position. Councilman Campbell had previously volunteered to assist. Director Pittis responded to an inquiry from Councilman Hulett pertinent to the small building under construction in the City Hall parking lot. The building will store maintenance tools and equipment, some of which is utilized for the Community Service program. Councilman Doyle informed the Council that he had been appointed by the AWC to the Legislative Committee. PUBLIC HEARINGS: None. LEGISLATION: 1. Ordinances Not Requiring Public Hearings Gambling Tax A. Amending Gambling Tax Ordinance No. 2967 Mayor Ostrowski reviewed the information provided by the Ad Hoc Committee on Gambling Taxes and asked the City Attorney if he had any further information to add. Attorney Knutson had no new information, but he explained that a compromise had been reached with the local operators so that the cost of the prizes would be deducted from gross receipts. Attorney Knutson stated that Councilman Doyle had noted an ambiguity in the wording of the Ordinance in the packet. Attorney Knutson, therefore, proposed a wording change to alleviate this ambiguity. Mayor Ostrowski then read the Ordinance by title, entitled ORDINANCE NO. 2967 AN ORDINANCE of the City of Port Ang61es, revising the tax rate on punchboards and pull tabs and amending Ordinance No. 1847, as amended, and Chapter 3.52 of the Port Angeles Municipal Code. -2- 3549 CITY COUNCIL MEETING September 16, 1997 LEGISLATION: Councilman Doyle moved to adopt the Ordinance as read by title, with the (Cont'd) corrections as noted by Attorney Knutson. Councilman Hulett seconded the motion. Councilman Campbell stated that the Ad Hoc Committee was appreciative of the industry Gambling Tax members who came forward to share information regarding the problems they face. They Ordinance No. 2967 would like to have seen the taxes reduced or eliminated, and ii'taxes were not eliminated, (Cont'd) they wanted taxes based on net receipts. Unfortunately, the Ad Hoc Committee did not feel it could reduce the City's revenues at this time; however, the committee's recommendation was an attempt to make the tax more fair. Councilman Wiggins pointed out that all those who approached the Ad Hoc Committee wanted to see both profit and nonprofit entities treated the same, and this ordinance accomplished that. Councilman Doyle stated that it would be unfair to lower gambling taxes when City employees have been asked to take a zero pay increase in 1998. Perhaps, in the future, when the economic situation has improved, this issue can be revisited. Councilmember McKeown pointed out that these business people do not have control of their business; the State controls what can be charged for pull tabs and punchboards. These are small business people who are losing money. She felt it was wrong to levy this ten percent tax, as it comes from the profits of the small business. While Councilmember McKeown understood this tax could not be cut this year, she felt strongly that this issue needed to be readdressed next year, as a small segment of the business community is being hurt. She stated that Sequim, Forks, Port Townsend, and Jefferson and Clallam Counties do not have a gambling tax at all. Discussion followed, and it was noted that this change in the tax, in effect, is revenue neutral for the City. A vote was taken on the motion, which carried by a majority, with Counellmember MeKeown voting in opposition. Bob Love, representing the Moose Lodge, indicated the Moose Lodge also currently pays a 7% tax on bingo. The Eagles Club is holding a meeting to discuss whether or not to sell its building and move out of the City. Mr. Love cited the amount of gambling to,xes paid to the City by the Moose Lodge, and he strongly disagreed with the Council's decision. He stated his group had asked the Ad Hoc Committee to consider a tax of five percent of net, and the other five percent could be used for business improvements or new hires. He felt the City would not lose money, as the remainder would be redirected back into the Councilmember McKeewn asked how much revenue gambling tax generated in 1996, and Clerk Upton responded $93,337. Councilman Wiggins stated the Committee understood the industry wanted the tax reduced; however, at this time, without alternative sources of income, there is no opportunity to reduce the tax. The Committee was willing to change the method by which that tax is collected and make it more equitable, and this was done. Mr. Love had been told that the City was considering taxation of all pool tables, shuffle board tables, etc., in the future. Councilman Wiggins stated there had been no discussion of taxing these items. Councilman Doyle noted that he.was on the committee at the time the gambling tax was lowered from four percent to 3.5 percent, and he did not remember promising to e 'hminate the tax in the future. Mr. Love reiterated that this was an unfair tax as the State is in control of the pull tabs and punchboards, and he felt the City should not be involved in gambling tax at all. He echoed his previous comments regarding lowering the tax to five percent and stated the Moose Lodge organization had contributed $30,000 to various community events in the past year. The Council's discussion then centered around the agenda item, "Items from the Audience/Council/Staff to be Considered or Placed on a Future Agenda". Mr. Love had wanted to address the Council on this particular agenda item, but was unclear as to the appropriate time to ask to speak. Therefore, the Council was in agreement that all future agendas should state, "Items from the Audience/Council/Staff to be Considered or Placed on This Agenda or a Future Agenda". On the gambling tax issue, Councilman Hulett asked that the issue be revisited during the budget process. -3- 3550 CITY COUNCIL MEETING September 16, 1997 LEGISLATION: 2. Resolutions not Requiring Public Hearings (Cont'd) A. Set a Hearing for Vacation of City Right-of-Way: Schouten - Portion of 16th Street Vacation - Schouten Between B and C Streets Resolution No. 10-97 Mayor Ostrowski reviewed the information provided by the Planning Department and read the Resolution by title, entitled RESOLUTION NO. 10-97 A RESOLUTION of the City of Port Angeles setting a heating date for a petition to vacate a portion of Sixteenth Street between "B" and "C" Streets, Port Angeles, Washington. Councilman Hulett moved to pass the Resolution as read by title. Councilman Braun seconded the motion, which carried unanimously. Resolution of Support B. Spragg Request for Resolution Supporting Waterbags for Waterbags Mayor Ostrowski reviewed the information provided by the Public Works Department. Terry Spragg read a statement to the Council, clarifying the resolution and stating he would not use any water l?om the Elwha to fill the bags. He chose to ask for the use of Ediz Hook and the harbor as a waterbag reservoir storage area. Mr. Spragg read to the Council the change he would like to have made in the draft resolution. He emphasized that he was, at this point, only asking for the Council's passage of the resolution at this meeting; he was not pursuing a water purchase. He felt it extremely important for the Council to send a message to Olympia regarding an industry that would create needed jobs and bring tax revenue to Port Angeles. Mr. Spragg explained why no other city would be qualified to pass this resolution, and he urged the Council members to contact Congressman Norm Dicks to more fully understand why this resolution would be so important to the ereation ofwaterbag technology jobs in Port Angeles. Further, Mr. Spragg indicated that tonight's decision would have a direct bearing on the peace process in the Mideast. He urged Port Angeles to send a message that would be heard around the world. Mr. Spragg explained that this resolution had nothing to do with Elwha water, but is about the creation of new jobs in Port Angeles, the use of Ediz Hood as a water storage reservoir, and Port Angeles's unique place in history related to water bag technology. This resolution would send a message that Port Angeles is willing to help, and Mr. Spragg felt confident that the people of Port Angeles have the courage and leadership to take the lead role in promoting water bag technology. He again urged the Council to support the proposed resolution. Discussion followed, and Mr. Spragg responded to questions posed by the Council and offered clarification on several issues. Mayor Ostrowski pointed out that Mr. Spragg had met with the Utility Advisory Committee and asked if an):one l~om that Committee wished to comment. Councilman Braun, Chairman of the UAC, stated that the UAC had spent an hour with Mr. Spragg and had lengthy dialogue with him. In the end, it was unanimously agreed to recommend denial of the passage of thc proposed resolution by the City Council. Councilman Doyle pointed out that Mr. Spragg had applied for water rights for 45 million gallons per day from the Elwha River. The City of Port Angeles has water rights for 45 million gallons per day for the industrial water line., and Councilman Doyle felt that if water fights were issued to Mr. Spragg for 45 million gallons of Elwha water, most likely the Port 3551 CITY COUNCIL MEETING September 16, 1997 LEGISLATION: Angeles water right would be considered abandoned. Councilman Doyle did not want to (Cont'd) encourage the thinking that the City would not be using the water available to it, as the City is recruiting to replace the Rayonier Mill and is currently working on a water plan. Resolution of Support ~ ~ :. ~ ~ for Waterbags (Cont'd) Mr. Spragg stated he would abrogate all rights to the water right application he has made. He repeated that he is not asking for any Elwha water. The resolution relates to the creation ofjobs and tax revenues. Councilman Campbell informed Mr. Spragg that before the Council passed a resolution, the members should be able to read it in its entirety. The resolution in the packet is not the resolution Mr. Spragg hoped to have passed. Also, before the Council considers using the harbor as a storage area, more information should be forthcoming to explain exactly what that entails. Councilman Campbell felt that the City should not be in the role of influencing the State and Federal legislature on behalf of SpraggBag technology. He asked for more information regarding the real opportunities and impacts on the community. Mr. Spragg felt one of the roles of the City Council was in the creation of a business environment with new jobs. Port Angeles is in a significant situation because of the Rayonier Mill closure. Water bag technology is an unknown. This technology is already being used in Greece. There is a precedent for leasing space in the bay; therefore, there should not be a problem leasing space to him for Spraggbag storage. Mr. Spragg felt the community was supportive of his technology. The Spraggbag's will be painted and be works of art, thereby a possible tourist attraction. Councilman Campbell agreed that the concepts being promoted had merit; however, he did not see the role of the City Council in supporting it through a resolution. Councilman Braun again stated that the City had water issues of its own that needed to be worked out before taking on any outside interests. He felt the water bag concept was a good one; however, the City of Port Angeles needed to direct attention to its own problems at this time. Councilman Wiggins felt that sending a resolution to Congress would be sending a message that is rather cloudy at this point. The Council must be able to champion the cause behind a resolution, and he did not see that cause evident. 3. Planning Commission Minutes/Action Items None. 4. Other Considerations Catkins Annexation I. Calkins Annexation Mayor Ostrowski reviewed the information provided by the Planning Department, and he asked Dave Sawyer, Senior Planner, to describe the additional area proposed for inclusion in the annexation. Using the overhead projector, Mr. Sawyer displayed a map which demonstrated the entire area to be annexed. He responded to questions posed by the Council and provided clarification of the annexation issues. Councilman Braun felt the annexation policies should state that no annexation shall be allowed which results in decreased minimum standards for police and fire protection. Councilman l)oyle moved to approve circulation of a petition for annexation. Councilman Hulett seconded the motion. Mayor Ostrowski offered the applicant the opportunity to address the issue. Larry Williams, representing the applicant, explained the zoning of the added property. He explained that the Calkins own 66% of the value and control over 250 potential homes in this area. If the other two proPerty owners decide they do not wish to come into the City, then Calldns can return to request annexation of only their property. Discussion followed, and Mr. Williams responded to questions and offered clarification. A vote was taken on the motion, which carried unanimously. -5- 3552 CITY COUNCIL MEETING September 16, 1997 LEGISLATION: Mayor Os'aowski recessed the meeting for a break at 8:45 p.m. The meeting reconvened (Cont'd) at 9:05 p.m. Break BPA Transmission Losses 2. Procurement of Power to Satisfy BPA Transmission Losses Mayor Ostrowski reviewed the information provided by the Public Works Department. Deputy Director Titus informed the Council that negotiations were ongoing, and that Bonneville had made it difficult for any supplier to provide this energy. The City would save about $8,300 by contracting this service. Discussion followed, and Deputy Director Titus responded to questions and offered clarification on various points of the issue. Councilman Campbell moved to authorize the Deputy Director of Utility Services to enter into a contract to purchase energy for transmission losses from the supplier that offer~ the lowest quoted price. Councilman Braun seconded the motion, which carried unanimously. Feasibility Study for Landfill 3. Adoption of Focused Feasibility Study for Landfill Mayor Ostrowski reviewed the information provided by the Public Works Department. Director Pittis introduced Richard Dunlap of Parametrix and reviewed the occurrences of the'past few weeks regarding the landfill. He stated that, if the Feasibility Study is accepted and approved by Council, it will be forwarded to the Solid Waste Advisory Committee and will hopefully be used in revising the Solid Waste Management Plan for Clallam County. Director Pittis also provided the Council with a copy of a letter to be sent by the Solid Waste Advisory Committee. Richard Dunlap of Parametrix, Inc., reminded the Council that Parametrix had discussed changing its recommendation based on a 1993 study regarding the closing of the landfill. At that time, it was felt that longhauling was thc best solution to the problem. Since that time, further discussions have been held with the FAA, the existing landfill has been evaluated, and more is known about the pricing of landfill alternatives. Parametrix now feels that maximizing the value of the existing landfill would be in the Cityls best interest. Mr. Dunlap then ~ the highlights of the focffsed feasibility study prepared by his company, responded to questions, and provided clarification to several points. Discussion followed. At Councilman Doylc's request, Mr. Dunlap explained the post- closure account deposit and withdrawal schedule for the year, 2007. Director Pittis explained that the Solid Waste Revenue Bonds also had a debt coverage ratio of 30%, and that money can also be used for post-closure expenses. Concern was expressed as to whether or not non-residents would be paying part of the post-closure costs, and Director Pittis assured the Council that all ratcpayers would contribute to these expenses. Director Pittis stated that staff is requesting thc Council accept the Feasibility Plan which recommends the existing landfill be maintained through 2006, and options be evaluated three years prior to closure. ' ' ~ ' ' ' Councilman Cm.qgbell, who partm~pated on the SWAC, felt this study removes the uncertainties of the landfill's future. He saw only two impediments: mitigating the wildlife/bird problem at the airport and permitting the continued operation of the landfill and the extension of cell three. Conncilman Doyle moved to adopt tlie feasibility study with its recommendations and forward the study to the Clallam County Solid Waste Advisory Committee for use in updating the Solid Waste Comprehensive Plan. Councilman Hulett seconded the motion, which carried unanimously. -6- 3553 CITY COUNCIL MEETING September 16, 1997 LEGISLATION: Councilman Braun moved to extend the meeting past 10:00 p.m. Councilman Doyle (Cont'd) seconded the motion, which carried unanimously. Meeting Extended Past ~.!~ ~',:~ ~, ! ¥~, 10:00 p.m. Elwha Water Study 4. Status Report on Elwha Water Study Mayor Oslrowski reviewed the information provided by the Department of Public Works and asked Director Pittis if he had any additional information. Director Pittis stated the meeting with the Tribe was very productive and informational. He felt it was very important to work in cooperation with the Tribe to resolve the issues relative to water supply and the fisheries. Staff will bring information to the UAC and the Council as discussions occur. Attorney Knutson concurred with Director Pittis and stated the City Manager also thought this was a good idea. Manager Pomeranz had authorized Director Pittis to make a more formal contact with the Tribe to form a relationship. Manager Pomeranz has received a letter from the Tribal Chairwoman expressing the same sentiments. Councilman Campbell stated that CH2MHill had performed a study for Mr. Spragg and asked if this could be a conflict of interest. Director Pittis stated he had discussed this with CH2MHiI1, and they are forwarding a letter stating they do not feel there is a conflict of interest. Mr. Spragg has asked for a copy of this letter also. Director Pittis stated that there is a loan program for the Safe Water Drinking Act, and staff is applying for a loan for covering of reservoirs and for performing this water study. No action was taken. Lodging Tax Advisory 5. Set Special Meeting Date to Interview and Appoint Membership of the Lodging Committee Tax Advisory Committee. Mayor Ostrowski reviewed the information provided by the City Clerk. The Council agreed to meet on Tuesday, September 30, 1997, at 5:00 p.m. Discussion followed, and Councilmember McKeown felt that two at-large members should be added to the Committee. Clerk Upton advised the Council that there had been no recruiting of at-large members, therefore, she would send out a press release and advertise immediately for these vacancies. After further discussion, it was decided that the Lodging Tax Advisory Committee would be comprised of one Downtown Forward Advisory member, two Council members, two receivers, two givers and two citizens-at-large. The two Council representatives will be Councilman Campbell and Councilman Wiggins. Councilmember McKeown stated the Downtown Forward representative would be Jim Haguewood with Vicci Rudin as alternate. _ Elwha Dam Removal 6. Discussion of Senator Gorton's Position on Elwha Dam Removal Councilman Wiggins felt it important that the City react to Senator Gorton's position on removal of the lower dam fi'om the Elwha River. He asked that a letter be sent acknowledging the Senator's commitment to protecting the City's interest regarding water and watex quality. Discussion followed regarding lobbying for local labor to be used in the dam removal project. The City Manager and City Attorney will draft a letter for the Mayor's signature. -7- 3554 CITY COUNCIL MEETING September 16, 1997 Break .Mayor Ostrowski recessed the meeting for a break at 10:20 p,m. The meeting reconvened at 10:25 p.m. ADJOURN TO The meeting adjourned to Executive Sc.gsion at 10:25 p.m. to discuss a matter of litigation EXECUTIVE SESSION: for approximately fifteen minutes. RETURN TO REGULAR The meeting returned to open Session at 10:35 p.m. - MEETING: ADJOURNMENT: The meeting was adjourned at 10:35 p.m. -8-