HomeMy WebLinkAboutMinutes 11/07/2000 4312
CITY COUNCIL MEETING
Port Angeles, Washington
November 7, 2000
CALL TO ORDER - Mayor Doyle called the regular meeting of the Port Angeles City Council to order at
REGULAR MEETING: 6:00 p.m.
ROLL CALL: Members Present: Mayor Doyle, Councilmembers Campbell, Erickson, Hulett,
McKeown, and Wiggins.
Members Absent: Councilman Williams.
Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, B.
Collins, G. Cutler, D. McKeen, Y. Ziomkowski, K. Asquith,
T. Gallagher, G. Kenworthy, and D. Barnes.
Public Present: J. Somers, L. Lee, J. Jones, and J. Harmon.
PLEDGE OF The Pledge of Allegiance to the Flag was led by Mayor Doyle, followed by a moment
ALLEGIANCE: of silence for Larry Williams' father who recently passed away.
CEREMONIAL Recognition of Port Angeles as Veteran's Day Regional Site at U.S.C.G. Air Station on
MATTERS/ Friday, November 10, 2000, 10.'30 a.m.: Mayor Doyle reviewed a letter from the
PROCLAMATIONS: Secretary of Veterans Affairs to Governor Locke, naming Port Angeles as one of the
regional sites for the celebration of Veterans Day 2000. Mayor Doyle noted the
Recognition of Port ceremony will take place on Friday, November 10, as opposed to Saturday, November
Angeles as Veteran's Day 11.
Regional Site
Introduction of Chamber of Introduction of Chamber of Commerce Executive Director: Manager Qumn was pleased
Commerce Executive to introduce Mr. Russ Veenema, the newly appointed Executive Director of the
Director Chamber of Commerce. Mr. Veenema addressed the Council and noted the Chamber's
role is to intertwine with that of the City. He emphasized the need for a close working
relationship with the City, and he expressed the hope to hawe a good dialogue on many
issues. Mr. Veenema, in keeping with past practice from previous employment, advised
the Council he will be providing quarterly updates on Chamber activities and finances.
Acknowledging that funding is always an important issue, he thanked the Council for
past support, as well as for the funding included in the 200I budget. He indicated the
Chamber would do its best to earn the funding and to show there is a good return on
investment.
WORK SESSION: None.
LATE ITEMS TO BE Mayor Doyle referenced a communication received from the Association of
PLACED ON THIS OR Washington Cities having to do with the adoption of a new set of shoreline management
FUTURE AGENDA: rules by the Department of Ecology. The City of Chelan is planning to file legal action
due to the lack of funding to support mandated local update responsibilities. Chelan
feels the excess cost related to shoreline master plans is a violation of 1-601, which
mandated that the legislature not impose new programs unless the subdivision is fully
reimbursed. The estimated cost of the new roles is $18.5 million statewide. The AWC
has asked if Washington cities would consider helping the City of Chelan in this legal
effort. After further discussion, it was agreed that staff will further research the issue,
determine if there is case law to support this action, and report back to the Council.
Councilman Campbell indicated he attended the AWC regional meeting in Poulsbo, at
which time this issue was discussed at length. He noted the AWC staff has asked for
support of Chelan's efforts.
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CITY COUNCIL MEETING
4313 November 7, 2000
LATE ITEMS TO BE Paul Lamoureux, 602 Whidby, encouraged the Council to give consideration to a
PLACED ON THIS OR reduced electric rate for the months of November and December in order to provide an
FUTURE AGENDA: incentive for the residents to decorate their homes for the holidays. He cited the success
(Cont'd) of past efforts by the Council to provide a financial incentive on water rates so that
residents would water their yards during the summer months. Mr. Lamoureux
suggested a tour of the holiday displays, with awards for the best displays.
John Somers addressed the Council regarding an on-going problem he has been
experiencing since 1969 in the area of the walkway on First Street. Mr. Somers read
into the record a statement summarizing the history of the walkway and the problems
associated with water leaks under the walkway, creosote timber odor, and poor
ventilation. Mr. Somers discussed a 1991 letter from the Fire Chief, striking an
agreement to seal the upper walkway, cover the surface below the walkway, and build
a wall with ventilation. Mr. Somers indicated there is still no ventilation, water and tar
are constantly leaking, and the smell is unhealthy and offensive. Mr. Somers stated
there has been no priority action in order to get the matter resolved; he asked that the
Council proceed with quick action so that occupants of the adjoining businesses would
have no health problems. Further, Mr. Somers stated his expectation that he receive
something in writing by November 15 stating the Council has read the letter he
provided for the packet. He noted he would be very honored to have the Council view
the situation.
Harvy Kailin, Blyn, distributed to the Council some information he felt would be
interesting in light of the City's consideration of the Unisys portal project.
FINANCE: None.
CONSENT AGENDA: Councilmember McKeown moved to accept the Consent Agenda, to include: 1)
City Council minutes - October 17, 2000 regular meeting. The motion was seconded
by Councilmember Erickson and carried unanimously.
CITY COUNCIL Councilman Campbell summarized the interview process used in seeking a replacement
COMMITTEE for the Executive Director of the Olympic Air Pollution Control Authority. The field
REPORTS: has been narrowed to two final candidates.
Councilman Wiggins informed the Council of his involvement in the final selection of
Jim Haguewood as Executive Director of the Clallam County Economic Development
Council.
Councilman Hulett had no report.
Councilmember Erickson indicated she would be checking into the City funding for the
male educator through the Human Services funding. Also, with regard to the Clallam
Transit Board, she indicated everyone was awaiting the outcome of the election on 1-
745.
Councilmember McKeown related to the Council the fact that the Downtown Forward
Executive Committee has been somewhat restless about its mission. After a meeting
with Manager Quinn and Tim Smith, she indicated some good ideas had been
forthcoming. There will be a brainstorming session to consider other new ideas, which
may also include an enlargement of the focus beyond the downtown corridor.
Mayor Doyle reported he had been filmed by Northland Cable for the purpose of a
public service announcement on the container conversion. He participated in the
Budget Committee meetings, attended an EDC meeting on the Sappho gap, and he
attended the inspection of the Junior Naval ROTC students.
ORDINANCES NOT None.
REQUIRING PUBLIC
HEARINGS:
RESOLUTIONS: Grant ~4pproval for Tumwater & Ennis Slide Repairs: Mayor Doyle reviewed the
information submitted by Public Works & Utilities with regard to costs associated with
Grant Approval for slide repairs to Tumwater Street and Ennis Street duc to the January 1999 storms.
Tumwater & Ennis Slide Emergency Federal funding is now coming forward to reimburse the City for the costs
Repairs - to make repairs. Mayor Doyle read the Resolution by title, entitled
Resolution No. 13-00
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CITY COUNCIL MEETING
November 7, 2000 t43
RESOLUTIONS: RESOLUTION NO. 13-00
(Cont'd)
A RESOLUTION of the City Council of the City of Port Angeles
Grant Approval for expressing the Council's appreciation for, and authorizing
Tumwater & Ennis Slide the execution of agreements and other documents required
Repairs (Cont'd) to obtain, stateand federal emergency funding and
Resolution No. 13-00 assistance for the Tumwater Street and Ennis Creek slide
repairs.
It was noted that the title of the Resolution should be corrected to read "Ennis Street"
instead of "Ennis Creek". Councilman Wiggins moved to pass the Resolution as
corrected and as read by title. The motion was seconded by Councilman Hulett.
Councilman Campbell posed a question with regard to the biological assessment,
whether the project costs could escalate, and whether the City would be reimbursed for
any increased costs. Public Works & Utilities Director Cutler indicated there should be
no increase in work associated with this project; however, the biological assessment is
a requirement. City Engineer Kenworthy added the process may be as simple as a
checklist or the City may be required to go further to meet certain regulations. A vote
was taken on the motion, which carried unanimously.
OTHER Other Considerations:
CONSIDERATIONS:
1. Carnegie Library Project Design and Value Engineering
Carnegie Library Project
Design and Value Mayor Doyle reviewed the information submitted by Public Works & Utilities, and
Engineering Director Cutler reminded the Council of a work session previously held on the matter
of the Carnegie Library. At that time, the Council considered available funds for this
project, which total approximately $650,000. There is an uncertainty as to whether the
building should undergo restoration or renovation; however, Director Cutler felt the
process should move forward by obtaining plans and specifications for construction, as
well as value engineering to look at alternatives to what has already been proposed. It
is hoped the overall costs of the project can be reduced, and Director Cutler assured the
Council he would return with a recommendation.
Discussion followed about the fee negotiation, and Director Cutler indicated he would
return to the Council regarding the negotiated fee. The value engineering study should
cost approximately $5,000. Manager Quinn indicated the Council had directed staff to
seek grant funding for the project, and at this point, the City's application is one of two
being considered by the Walkling Trust. Councilmember McKeown inquired as to
whether this project could be accomplished through a foundation, and Manager Quinn
indicated that because it is City property, the project must be done as a public work.
However, the situation exemplified by the Bonny's Bakery lease was cited by Mayor
Doyle as a possibility for moving towards renovation or restoration. Manager Quinn
felt the appropriate scenario would be determined by the ultimate use of the building,
but there are different avenues that can be pursued. He noted the City could wait
another two years to again apply for a State grant, but it is hoped the building can be
turned into a community asset much sooner.
Councilmember McKeown moved to authorize the Public Works & Utilities
Director to enter into negotiations with Olympic Design Works for architectural
services to prepare plans and specifications for the restoration/renovation of the
Carnegie Library Building and, further, to authorize the Public Works & Utilities
Director to request qualifications from and enter into fee negotiations with the
select.ed engineering firm to prepare a value engineering study of the proposed
structural/seismic retrofit for the Carnegie Library Building. The motion was
seconded by Councilman Campbell and carried unanimously.
Presentation on County 2. Presentation on County Salmon Recovery Program
Salmon Recovery
Program Mayor Doyle reviewed the information submitted by Planning Director Collins with
regard to the County's Salmon Recovery Plan. Present to submit the plan to the
Council was Mr. Joel Freudenthal, County Fish Biologist. Mr. Freudenthal addressed
the Council by initially turning attention to the procedural requirements of the
Endangered Species Act when species are threatened. Protective regulations have been
established in the form of the 4(d) rule, followed by the formulation of a recovery
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CITY COUNCIL MEETING
November 7, 2000
Presentation on County plan. Mr. Freudenthal discussed the separation of the recovery plan into a scientific
Salmon Recovery phase and a more involved policy phase. The time it takes to formulate this plan is also
Program (Cont'd) the length of time local governments will operate under this set of regulations, which
is the short-term planning horizon. Every effort is being made to complete plans as
quickly as possible, as anything that is done to come into compliance must be viewed
as a short-term strategy. Once this is done, there will be revised protective regulations
that will be put in place for the long term.
Mr. Freudenthal continued that, once the 4(d) rule was issued, there were some rather
broad categories created, which he proceeded to discuss in detail. Using the Growth
Management Act as an analogy, he indicated the basic premise is "don't take" and "do
no harm". The NMFS did provide specific direction for general areas and, if local
governments could formulate a plan, they could be protected with NMFS approval
under the 4(d) rule. Mr. Freudenthal indicated there are three broad and general types:
scientific research, fish harvest, and artificial propagation. More specifically, the areas
break down into population management activities and habitat management activities.
Mr. Freudenthal noted that local government has direct control and responsibility over
these areas. He discussed in detail the issues pertinent to these broad categories, noting
that many of them fall under a critical areas function or a stormwater function.
Mr. Freudenthal delineated what is expected of local government within the categories
of the Final Rule, and he specified municipal, residential, commercial, and industrial
development and redevelopment (MRCI) avoidance requirements, as well as those that
government must "require and protect". He advised the Council that the 4(d) rule
philosophy and rationale for habitat is a properly functioning condition and, for
populations, it is viable salmonid populations. Mr. Freudenthal indicated an
environmental baseline must be established, which will set forth the geographic areas
to which the program will apply. He indicated the County has no desire to somehow
drive the regulatory program or compliance but, rather, would prefer to work in concert
with the cities through this plan that would be submitted to the NMFS. Mr. Freudenthal
felt the County's weakest effort in this endeavor would be the lack of a stormwater plan
in terms of retention and the like. He asked for the City's help in doing basin planning
to determine if there are specific needs in the Urban Growth Area.
Discussion followed with the Council asking questions of Mr. Freudenthal. Planning
Director Collins felt it would be beneficial for the Council to appoint representatives to
a salmon recovery ad hoc committee to get to the best policy decisions and identify
what actions might need to be taken by the committee. Policy decisions will need to be
made prior to January 8, 2001. Councilmembers Erickson, Campbell, and Wiggins
agreed to serve on this committee. The committee will meet at 3:00 p.m., on Tuesday,
November 21, 2000. Mr. Freudenthal indicated there will be a meeting with the NMFS
on December 4, and it was his hope the City would have representation at that meeting.
PUBLIC HEARINGS - None.
QUASI-JUDICIAL
PUBLIC HEARINGS - Public Hearings - Other:
OTHER
1. Police Department - Local Law Enforcement Block Grant (LLEBG)
Mayor Doyle reviewed the information submitted by the Police Chief on the matter of
grant funding from the U.S. Department of Justice for the purchase of a new patrol car.
Detective Sergeant Gallagher advised the Council this is an annual grant, the funding
from which is typically used to purchase a police vehicle. He indicated a public hearing
is required in order to receive the funding.
Mayor Doyle opened the public hearing at 7:25 p.m. There being no public testimony,
the public hearing was closed at 7:25 p.m. No action was required by the Council.
Budget Hearing on 2. A. Public Hearing on Revenue Sources
Revenue Sources B. Property Tax Levy
Property Tax Levy Mayor Doyle clarified that the public hearing this evening would include all of the
Ordinance No. 3062' revenue sources and not just property tax levies. Manager Quinn reviewed the budget
Ordinance No. 3063 hearing process, noting the revenues are extremely important because they set the tone
for balancing the budget. There are two ordinances being considered in this agenda, the
property tax ordinance and the ad valorem taxes.
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CITY COUNCIL MEETING 43
November 7, 2000
Budget Hearing on Using power point, Manager Quinn reviewed projected revenues and sources of funds
Revenue Sources for the upcoming year. Revenues from the different sources were projected at
$59,310,461. The proposed regular property tax levy was set at an increase of 2% or
Property Tax Levy a $62,882 increase over the 2000 levy, which would be below the 2.6% IPD index.
(Cont'd) Manager Quinn reviewed special levies, noting the payoff of the City Pier bond.
Ordinance No. 3062 Further, he noted the importance of economic development efforts in order to increase
Ordinance No. 3063 sales tax, which has declined due to the departure of a large car dealership from the
City. He discussed the trend for decreased sales tax and the increase of property taxes
as a percentage of net operating revenue for the General Fund, which is a great concern
to the City.
Manager Quinn reviewed discussions held with owners and operators of pubs and
taverns who must pay the City gambling tax. The Budget Committee reviewed options
with the business owners as to how tax reductions might be accommodated. One option
is to allow the business owners to deduct the cost of games, which has not been allowed
thus far. The owners have been encouraged to use any savings accrued from gambling
tax reductions by investing in their businesses for improvement and to increase sales
taX.
Manager Quinn discussed the City's utility rates, noting the average combined
residential utility bill amounts to $141.75 per month and is 83% of the average of
comparable-sized cities in Washington. Various graphs were used to' display rate
comparisons of Port Angeles to other cities for the different utilities.
Manager Quinn reviewed potential sources of new income, none of which were
included in the 2001 budget. One potential source would be based on long-term vehicle
parking, which could generate as much as $50,000 in new revenue. It could be
designated for downtown projects and is quite similar to a tax levied by the City of
SeaTac at the airport.
Manager Quinn continued by stating another source of potential revenue would be a tax
on passengers who utilize the MV Coho and the Victoria Express. For example, a tax
of $1 per passenger ticket could generate up to $500,000, but Manager Quinn indicated
it would require a great deal of consideration on the part of the ferries. Before
recommending any tax of this type, Manager Quinn felt a determination should be made
as to where such monies raised would be dedicated. There should be a specific project
to receive such tax funds, as opposed to just raising taxes in order to support general
government. He noted that a majority of this tax would be raised by non-residents and
should be more thoroughly explored in future years.
A stormwater utility tax could be instituted and is something that will be brought to the
Council for consideration in the near future. Such a tax will determine the City's ability
to manage stormwater issues being confronted because of the need to protect the
environment as relates to salmon restoration, as well as other mandated stormwater
management issues. The stormwater efforts could ultimately create a new utility in the
City, and Manager Quinn felt the City could pursue this as a consideration in 2001.
On the matter of the ferry tax, Manager Quinn understood this possibility was looked
at in the 1980's and was dismissed at that time. He felt there are other options, such as
a B & O tax that he would not recommend to the Council. Brief discussion followed.
Break Mayor Doyle recessed the meeting for a break at 8:10 p.m. The meeting reconvened
at 8:25 p.m.
Budget Hearing on Mayor Doyle opened the public hearing on revenue sources at 8:26 p.m.
Revenue Sources
Jack Harmon, Victoria Express, clarified that he understood the suggestion of a ferry
Property Tax Levy tax was just a discussion item and would be reserved for future discussions with the
(Cont'd) ferry operators and other business owners. Mr. Harmon felt that such a tax would have
Ordinance No. 3062 a significant impact, and he expressed the hope that it wouldn't be considered again for
Ordinance No. 3063 another twenty years. With the suggestion that the introduction of a new tax should be
dedicated toward a specific project, Mr. Harmon felt that improvements to the pier or
a new dock could be accomplished through a variety of other ways to which the ferry
operators would be open for consideration.
Terry Roth, General Manager of Northwest Duty Free, felt that a tax on the ticket would
have a profound effect on ferry traffic and the business operators. To place a surcharge
on the price of tickets would further compound financial impacts felt because of the
CITY COUNCIL MEETING
,November 7, 2000
4317
Budget Hearing on increase in fuel costs. Mr. Roth discussed other taxes considered by other taxing
Revenue Sources authorities, and he noted there is concern in the business community as to what the City
chooses to do to increase revenues. He indicated that all new ideas of this nature need
Property Tax Levy to be discussed in depth before they are placed on the Council agenda for consideration.
(Cont'd)
Ordinance No. 3062 There was no further testimony, and the public hearing was closed at 8:35 p.m.
Ordinance No. 3063
Mayor Doyle referenced the matter of the gambling tax, which pub and tavern owners
feel is unfair particularly because the cost of games cannot be part of the tax calculation.
It has been suggested that a trial tax reduction be instituted, and the pub and tavern
owners would do everything possible to increase business. After a two-year period for
the trial reduction and if no material change has been realized, then the City may
consider adjusting the tax back to its original level. The cost of games could reduce
projected tax revenues by approximately $13,000. The City could consider a reduction
of $8,200 if a 1% reduction were implemented and hope to recover that amount by
increased business in the form of sales tax.
Finance Director Ziomkowski explained the methodology by which property taxes are
calculated, noting that the City's proposed increase of 2% is at the maximum allowed.
Because the County determines the property valuation, the City is in the position of only
being able to project valuations.
Returning to the matter of the gambling tax, Councilmember McKeown spoke in
support of allowing the business owners to consider cost of games in the tax
calculations. Councilman Wiggins was concerned about increasing property taxes
while, at the same time, reducing the gambling tax. Mayor Doyle supported a gambling
tax reduction of 1%, but Councilman Wiggins supported holding the line until the time
economic development efforts have turned the comer in the City. Councilman
Campbell felt it would be appropriate to consider a modest decrease in the gambling
tax, particularly because these businesses cannot pass the tax on to the customers which
is different than other taxes. Although he doesn't like raising property taxes, he felt
there would be some merit to a modest decrease in the gambling tax, especially because
of untaxed competition in the County and at the casino. Councilman Hulett noted that
this tax also impacts the non-profit organizations. A straw vote was taken on which
position the Council would take on the matter, but Attorney Knutson cautioned the
straw vote would only establish an informal indication of how the Council felt on the
issue. Councilmember McKeown moved that the tax levied against pub and tavern
owners for gambling be reduced by the cost of games for a period of two years.
The motion was seconded by Councilmember Erickson. A vote was taken on the
motion, with Councilmembers McKeown, Erickson, and Hulett voting in favor of
the motion and Mayor Doyle and Councilmembers Wiggins and Campbell voting
in opposition. The motion, therefore, failed.
Manager Quinn advised the Council of some disturbing trends taking place with respect
to revenues. He felt the City's future is dependent on expanding its economic base plus
activities that increase sales tax. Some of the major elements of the budget include fiber
optics and annexation to expand eastward into the Urban Growth Area. Port Angeles
is critical to the North Olympic Peninsula, and the only way the cities on the Peninsula
can progress is by growth. One of the ways to accomplish this is by a drastic reduction
of expenses.
Finance Director Ziomkowski directed the Council's attention to the ordinances in the
packet, noting that property taxes must be levied by November 15. Mayor Doyle read
the first Ordinance by title, entitled
ORDINANCE NO. 3062
AN ORDINANCE of the City of Port Angeles, Washington,
determining and fixing the amount to be raised by ad
valorem taxes for the year 2001 and directing the City
Clerk to certify said amount to the Board of Clallam
County Commissioners.
Councilman Hnlett moved to adopt the Ordinance as read by title. The motion
was seconded by Councilmember McKeown. Councilman Wiggins asked if there
were any comments from the Budget Committee, and Manager Quinn responded that
he is presenting a balanced budget. If the property taxes were not increased, then he
would recommend that cuts be made on the expense side. He would not favor making
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CITY COUNCIL MEEI'ING t~ 3 ! 8
November 7, 2000
Budget Hearing on up the difference by tapping the reserves. Not only would expenses need to be cut, but
Revenue Sources Manager Quinn felt that consideration would have to be given to a reduction in services.
Property Tax Levy Finance Director Ziomkowski emphasized the fact that the County would never increase
(Cont'd) the City's request for property taxes, but it could institute a decrease. Councilmember
Ordinance No. 3062 McKeown noted that, until the time the City knows whether the property tax will slip,
Ordinance No. 3063 it might be advantageous to wait on making a decision pertinent to a gambling tax
reduction. It is likely the City would know the status of property taxes by the end of
April, at which time the City could proceed with a decision on gambling.
Discussion followed with regard to the funds set aside for the Carnegie Library, and
Councilman Wiggins felt it possible that this money could be used to balance the budget
if necessary. Manager Quinn advised the Council of a contingency set aside in the
event 1-722 is passed by the voters. Should the Initiative not pass, those funds could be
carried into 2001. After further discussion, a vote was taken on the motion, which
carried unanimously.
Mayor Doyle read the second Ordinance by title, entitled
ORDINANCE NO. 3063
AN ORDINANCE of the City of Port Angeles, Washington,
authorizing a $62,882 increase in the regular property
tax levy for the fiscal year 2001, which amount is 2
percent more than the property tax levied for collection
in 2000.
Councilmember McKeown moved to adopt the Ordinance as read by title. The
motion was seconded by Couneilmember Erickson and carried by a majority vote,
with Councilman Wiggins voting in opposition.
INFORMATION: City Manager's Report: Manager Quinn advised the Council that future Information
Agendas will include a status report on the top projects underway. The Council
expressed support of this idea.
Brief discussion was held on the status of the 8th Street project, which has been delayed
due to rain. Director Cutler indicated that Lakeside Industries plans to get to Lincoln
Street before the plant closes.
ADJOURN TO None.
EXECUTIVE SESSION: ~~ ~
ADJOURNMENT: The meeting was adjourned at 9:20 p.m. c ~~ ·
13'~kx) J. 'U~ ClOt/--- - Earry~e, Ma~/ '
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