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HomeMy WebLinkAboutMinutes 11/17/1999 4086 CITY COUNCIL MEETING Port Angeles, Washington November 17, 1999 CALL TO ORDER - Mayor Braun called the regular meeting of the Port Angeles City Council to order at REGULAR MEETING: 6:00 p.m. ROLL CALL: Members Present: Mayor Braun, Councilmembers Campbell, Doyle, Wiggins, and Williams. Members Absent: Councilmembers Hulett and McKeown. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, S. Brodhun, G. Cutler, S. Ilk, Y. Ziomkowski, S. McLain, G. Kenworthy, J. Shay, G. Drake, M. Shamp, V. Daugaard, K. Ridout, B. Coons, S. Martin, D. Grove, D. O'Donneil, D. Sawyer, and A. Marks. Public Present: P. Lamoureux, R. Wheeler, T. Fraser, J. Schwagler, B. Roberds, D. Bentley, and D. Delaney. PLEDGE OF The Pledge of Allegiance to the Flag was led by Ken Ridout, Deputy Director of Public ALLEGIANCE: Works & Utilities. CEREMONIAL Recognition of City Light Employee, Jim Shay, on Completion of Apprenticeship to MATTERS/ Lineman PROCLAMATIONS: Mayor Braun introduced Jim Shay and announced that he had completed his Recognition of City Light apprenticeship program and was now a Lineman. Mayor Braun thanked Jim for his Employee- Jim Shay efforts, congratulated him on his success and presented him with a Certificate of Completion of the Apprenticeship Program. Public Works & Utilities Director Cutler lauded Mr. Shay on his efforts. WORK SESSION: None. LATE ITEMS TO BE Councilman Williams asked for a brief discussion of the Gateway Project which was PLACED ON THIS OR addressed under Committee Reports. FUTURE AGENDA: Beverly Johnson, 914 N. Beech, spoke on behalf of the community's youth and asked for City assistance in acquiring a safe building for the youth to meet, as the Teen Scene did not meet their needs. Ms. Johnson stated that she had some young people with her who wished to speak to this issue. Danielle Lang, 1120 E. Sixth Street, spokesperson for the group of young people, felt the Teen Scene was not doing an efficient job of keeping most teens busy. She felt it was not a good place to hang out, as some of the teens there are into drugs. Ms. Lang hoped the City could provide a building for teens that would be safe, where they could listen to music and do homework or art projects. Discussion followed, and Mayor Braun asked if the same problems wouldn't occur in a new building. Ms. Lang and Ms. Johnson responded to questions and offered solutions to the problems. Ms. Johnson felt a teen hang out needed to be open until at least 2:30 or 3:00 a.m. or the kids would be out on the street. Chief Ilk stated his department met regularly with the Teen Scene staff. He did not feel children should be on the street at 2:00 a.m., and he questioned whether it was the tax .payers' responsibility to oversee teenagers at this time of the morning. The Teen Scene ~s supported by grant money and is for high risk youth. Ms. Johnson felt the Teen Scene had worn itself out, and the teens did not respect the adult in supervision. -1- 4087 CITY COUNCIL MEETING November 17, 1999 LATE ITEMS TO BE Councilman Doyle felt if there was a problem the solution was not to open another teen PLACED ON THIS OR center, but to rectify the problems and improve the existing program. Councilman FUTURE AGENDA: Wiggins agreed. Ms. Lang stated part of the problem was the Teen Scene closes too (Cont'd) early on weekends, and it is the number one place to purchase drugs. Michael Thacker, 1825 W. Fifth Street, stated a Youth Night is sponsored on Saturday nights at the YMCA. Activities such as basketball and weight training are conducted; however, he has still seen kids attempt to buy drugs there, and it closes at 11:00 p.m. Further discussion ensued, and it was agreed that staffwiil meet with Ms. Johnson and others and attempt to find solutions to the problems discussed this evening. FINANCE: None. CONSENT AGENDA: Councilman Doyle moved to accept the Consent Agenda, to include: 1) Council minutes of November 2, 1999, regular meeting; and 2) Check list -November 5, 1999 - $823,386.97; and 3) Out-of-State travel exceeding $750 by Public Works & Utilities Director. Councilman Campbell seconded the motion. Brief discussion and clarification followed. Councilman Doyle noted a correction was necessary to the minutes, as he had only attended one Real Estate Committee meeting. A vote was taken on the motion, which carried unanimously. CITY COUNCIL Councilman Doyle attended meetings of the Real Estate Committee, UAC, and COMMITTEE Olympic Air Pollution Control Authority. He attended the Remembrance Day REPORTS: Celebration in Victoria B.C. as the City's representative and attended the Chamber of Commerce fund raising auction. Councilman Doyle noted that today was Bob Day in Victoria in honor of Bob Cross, Mayor, who is retiring soon. Councilman Wiggins suggested the City send a retirement gift, as Mayor Cross has been a good friend to Port Angeles. Councilman Williams attended three budget meetings and a Transportation Improvement Board (TIB) meeting. He also attended a Real Estate Committee meeting and a Transit Board meeting. It appears that the Transit System will be funded with reserves for the first nine months of 2000; if additional funding cannot be found, 33 transit drivers will be laid off, and more than half of the bus routes will be removed. Councilman Campbell stated that, having attended various individual sessions of the Governor's Conference, it was clear that broad band telecommunications was the key for economic development. Councilman Campbell also reviewed the information obtained regarding the watershed planning effort for the City. Councilman Wiggins attended a Marine Resources Committee meeting and reviewed the information and actions to be taken by that Committee. He also attended a Gateway meeting. Options were discussed as to where the transit facility would be located. The option favored was the area located on Lincoln Street north of Front Street to Railroad. Councilman Wiggins reviewed how the loss of parking would be handled and what type of structure might be built. Councilman Wiggins asked Gary Kenworthy, Deputy Director of Engineering, for an update on this project. Mayor Braun stated the City could lose the money dedicated to this program if it is not utilized before the deadline. Mr. Kenworthy agreed with Mayor Braun and reviewed the amount of money received and from what sources. Mr. Kenworthy stated the Board has decided to proceed with the first phase of this project and build a plaza for the various transportation modes. Mr. Kenworthy described the steps needed to be taken to get this project underway. Discussion ensued, especially as pertains to funding and the effect of 1-695 on this project. Mr. Kenworthy responded to additional questions. Councilman Williams reminded the Council that this was a City project with the involvement of the Transit Board, and it is time to move forward. Councilman Wiggins agreed and stated economic development was the key, and the architect should develop a brochure to thoroughly explain the project to the citizens. Aria Holzschuh, Executive Director of the Port Angeles Downtown Association, advised the Council that the new proposal feels exciting for downtown. She reviewed her vision for the future of downtown and felt it was reachable with the new proposal. Mayor Braun attended the Annual Crab Feed, Mayors meeting, and the Veteran's Day celebration held at the Coast Guard Air Station. -2- 4O88 CITY COUNCIL MEETING November 17, 1999 PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - 1. Water/Wastewater Rates OTHER: Mayor Braun reViewed the information provided by the Public Works & Utilities Water/Wastewater Rates Department. Director Cutler described the history of the process for the setting of new Ordinance No. 3029 rates which included the hiring of Economic and Engineering Services to perform the Ordinance No. 3030 study. Director Cutler noted that this process began in 1998, and staff has worked long and hard in developing this study. Mayor Braun opened the public hearing at 7:02 p.m. Tom Gould, representing EES, used the overhead projector to make a presentation describing the methodology incorporated in studying the water and wastewater rates and the recommendations being made. Mr. Gould stated there is a three-step process in studying the rates: revenue requirements, cost of service, and rate design. Mr. Gould gave an in-depth explanation of the steps and described the results of each of them as regards the water/wastewater utilities in Port Angeles. He discussed the objectives for establishing the rates and revenue requirements, described the key assumptions of the revenue requirements, and provided a summary of the water and wastewater revenue requirements as well as a summary of their capital projects. Mr. Gould provided a summary of recommendations for revenue requirements for both utilities and summarized debt coverage ratios. He listed the conclusions reached regarding the cost of service and the goals and objectives of the rate design process. Mr. Gould described the proposed approach to rate design and listed the proposed water/wastewater rates for 2000 through 2002. He concluded by informing the Council that the proposed adjustments will maintain financial stability for the utilities, that rate adjustments were minimized through the use of the rate stabilization funds, and stressed that capital costs were carefully reviewed to minimize impacts to customers. Paul Lamoureux, 602 E. Whidby, asked if there would be additional public hearings on this issue, and Mayor Braun responded there would not. Mr. Lamoureux felt this should have received more coverage and asked if it were possible to delay action on this issue due to lack of public participation. Councilman Doyle stated that legal publication had been provided, but he did not believe there had been a news article on it. Councilman Campbell stated he shared Mr. Lamoureux' concern, and he had spread the word that there was going to be a public hearing on rate and tax increases tonight. He also reminded the Council that Manager Quinn had recently been on the radio to discuss this issue, and the media had received a Council packet which contains all this information. Given all that, Councilman Campbell felt it was disappointing that there is not more indirect publicity regarding the hearing. Mayor Braun stated that, in the past, the amount of public participation during the public hearings for the budget process has been disappointing, but obviously the citizens of Port Angeles have faith in the ability of the Council to serve them and fulfill their needs even when it means a rate increase. Councilman Wiggins asked how the City's Bond Rating would be affected if the rate increase was not adopted. Director Ziomkowski stated that the Bond Ordinance requires the utility rates to keep up with the bond ratio. However, the City's rating could go down in future bond issues. Currently the City enjoys a bond rating that is AAA.. Paul Lamoureux returned to the podium and asked how the new rates tie into the costs for the Secondary Treatment Plant. Councilman Campbell stated that, in 1998, Council moved to defer the rate study until 1999. Revenues have been stable, and costs have been rising. Failing waterlines are part of the capital projects, and the City has had an unfortunate record of waterline failures resulting in serious damage. The costs for damage repair must also go against water/wastewater funds, and losses must be paid for out of the revenues for those utilities. Mr. Lamoureux did not feel his question had been answered and asked if tonight's rate increases really went to the cost of doing business, or if it was because of projects such as the Secondary Treatment Plant. Councilman Doyle answered that bonds were issued to pay for the Secondary Treatment Plant; when the bonds are paid off, the debt is gone. However, by that point, other expenses will have taken its place. Therefore, the rate -3- 4089 CITY COUNCIL MEETING November 17, 1999 PUBLIC HEARINGS - structure is set to cover those payments, plus whatever else is needed to operate the OTHER: system on a day-to-day basis. Mayor Braun invited Mr. Lamoureux to meet with the Public Works Director to have all of his questions answered, and Mr. Lamoureux felt Water/Wastewater Rates that Councilman Doyle had given him the information he sought. Ordinance No. 3029 OrdinanCe No. 3030 There was no further testimony, therefore, Mayor Braun closed the public hearing at (Cont'd) 7:40 p.m. and read the first Ordinance by title, entitled ORDINANCE NO. 3029 AN ORDINANCE of the City of Port Angeles, Washington, revising water rates and amending Ordinance 2181 as amended and Chapter 13.44 of the Port Angeles Municipal Code. Councilman Doyle moved to adopt the Ordinance as read by title. Councilman Williams seconded the motion. Discussion followed, and staff provided additional clarification. Councilman Doyle reminded the Council that, without rate increases, the City would be in a serious deficit situation within three years. Also, the rate stabilization fund is being utilized, or the increases would have been larger. Councilman Campbell again stated that this is not a new issue, as the need for a rate increase was realized in 1998. A vote was taken on the motion, which carried unanimously. Mayor Braun read the seconded Ordinance by title, entitled ORDINANCE NO. 3030 AN ORDINANCE of the City of Port Angeles, Washington, revising rates for wastewater service and amending Chapter VI of Ordinance 2394 as amended and Chapter 13.65 of the Port Angeles Municipal Code. Councilman Wiggins moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion, which carried unanimously. Revenue Sources 2. Revenue Sources Property Tax Levy a. Regular Property Tax Levy Ordinance No. 3031 b. Property Tax Increase Property Tax Increase Mayor Braun reviewed the information provided by the Finance Department, and Ordinance No. 3032 Manager Quinn gave a brief power point presentation summarizing the General Fund Revenues and Expenditures which mandated the property tax levy for the 2000 budget. Manager Quinn noted that 22% of the General Fund budget is property taxes, all taxes are 60% of the budget, and property taxes are 37% of all taxes in the General Fund budget. Manager Quinn displayed a chart which demonstrated a history of property tax levies from 1992 through the proposed 2000 budget. The statutory limit is $3.10, and the City was at that limit in 1992 and 1993. It was lowered in subsequent years due to reassessment of the assessed values. For 1999, the tax levy was $3.01 per $1,000, and the year 2000 is estimated at $3.04. Manager Quinn reviewed the special voted levies covering the Senior Center, Fire Station, and Library. Mayor Braun opened the public heating at 8:00 p.m. There being no public testimony, and Mayor Braun closed the public hearing at 8:00 p.m. Real Estate Excise Tax c. Real Estate Excise Tax: Second. 25% Ordinance No. 3033 Mayor Braun opened the public hearing at 8:00 p.m. Manager Quinn reviewed the information provided in the packet and explained the annual revenue would be approximately $100,000 from this .25% excise tax. By state law, this excise tax is more limited in its use than the first .25%. It is used primarily for street and park projects, but cannot be used for the acquisition of parks or building facilities. Manager Quinn recommended it be used for street projects, as he felt good streets were of prime importance to the residents of Port Angeles. He pointed out that one advantage to this revenue source is that it only applies to those involved in real estate transactions and -4- 4090 CITY COUNCIL MEETING November 17, 1999' Revenue Sources does not affect all tax payers. (Cont'd) Councilman Wiggins stated these raises are a recommendation from the Budget Real Estate Excise Tax Committee based on the needs &the City's overall budget and financial condition. Ordinance No. 3033 (Cont'd) There being no oth~f~public testimony, Mayor Braun closed the public hearing at 8:05 p.m. Fee Increases d. Other Fee Increases (Finance, Parks, Police, Public Works, Ordinance No. 3034 Planning, Fire Mayor Braun opened the public hearing at 8:06 p.m., and Manager Quinn reviewed the information provided in the packet. He noted that some of the fees had not been changed in several years, and increases are driven by the changes in inflationary pressure. Manager Quinn reviewed some of the changes contained in the ordinance and explained why the changes were suggested. Tim Fraser, President of the North Olympic Peninsula Building Assn., spoke in support of the fee increases as they pertain to the building division. These fees have not been increased since 1996 and the Assn. has no objection to the increases. He urged the City to not wait so long to institute such an increase, as the impacts are lessened by gradual increases. There was no further public testimony, and Mayor Braun clOsed the public hearing at 8:13 p.m. Water/Sewer Connection e. Water and Sewer Connection Charge Increases Ordinance No. 3035 Mayor Braun opened the public hearing at 8:15 p.m. Manager Quinn summarized the changes reflected in the ordinance. There was no public testimony, and the public hearing was closed at 8:15 p.m. Medic I Fee Increase f. Medic I Fee Increase Ordinance No. 3036 Manager Quinn reviewed the information provided in the packet and stated this rate was last changed in 1995. The proposed increase will generate $55,000 in additional revenue per year. In the 2000 budget, replacement of a Medic I emergency vehicle is indicated. This increase will help defray replacement costs, as there are no replacement reserves. Mayor Braun opened the public hearing at 8:17 p.m. There was no public testimony, and the public hearing was closed at 8:17 p.m. Mayor Braun read the Ordinances by title, entitled ORDINANCE NO. 3031 AN ORDINANCE of the City of Port Angeles, Washington, determining and fixing the amount to be raised by ad valorem taxes for the year 2000 and directing the City Clerk to certify said amount to the Board Clallam County Commissioners. Councilman Doyle moved to adopt the Ordinance as read by title. Councilman Williams seconded the motion, which carried unanimously. ORDINANCE NO. 3032 AN ORDINANCE of the City of Port Angeles, Washington, authorizing a $43,117 increase in the regular property tax levy for the fiscal year 2000, which amount is 1.4 percent more than the property tax levied for collection in 1999. Councilman Campbell moved to adopt the Ordinance as read by title. Councilman Wiggins seconded the motion. Councilman Wiggins noted that this tax could have been increased to 6% when the City is only raising it 1.4%. Councilman -5- 4091 CITY COUNCIL MEETING November 17, 1999 Revenue Sources Doyle also reminded the Council that, in 1999, the interest on the library construction (Cont'd) money was applied to the tax allowing for a smaller tax increase. That interest money is no longer there, so the increase may look larger than 1.4%, but it is due to the loss of the interest money. Councilman Campbell asked Director Ziomkowski what percentage of change to the library levy will be felt. Director Ziomkowski stated that, in 1999, only 50% of the debt payment was levied because of the interest from the construction fund, which no longer exists. In 2000, the amount of the full debt payment is being levied. A vote was taken on the motion, which carried unanimously. ORDINANCE NO. 3033 AN ORDINANCE of the City of Port Angeles, Washington, adopting the second one-quarter of one percent excise tax on the sale of real estate as authorized by RCW 82.46.035 and amending Ordinance 2598 and Chapter 3.62 of the Port Angeles Municipal Code. Councilman Williams moved to adopt the Ordinance as read by title. Councilman Doyle seconded the motion. Councilman Williams pointed out that the total sales tax within the City will be .25% higher than it is in the County. He then provided a break down of this tax. Councilman Williams stated the only reason he supports this tax increase is because it is to be used for street improvements and maintenance. A vote was taken on the motion, which carried unanimously. ORDINANCE NO. 3034 AN ORDINANCE of the City of Port Angeles, Washington, increasing fees charged for services rendered by the Finance Department, Parks and Recreation Department, Planning Department, Fire Department, Public Works and Utilities Department, and Police Department, and amending Ordinances 2789 and 2932, as amended, and Chapter 3.70 of the Port Angeles Municipal Code. Councilman Wiggins moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion. Discussion and clarification ensued regarding bicycle, dog and cat licensing. Attorney Knutson noted a correction was necessary on Page 130 of the packet in that the fee for 2" water meter service connections which reads $3,480.00 should read $2,320.00. A vote was taken on the motion, which carried unanimously. ORDINANCE NO. 3035 AN ORDINANCE of the City of Port Angeles, Washington, increasing the system development charge for recovering capital costs of water and sewer facilities and amending Ordinance 2746 as amended and Chapter 13.69 of the Port Angeles Municipal Code. Councilman Doyle moved to adopt the Ordinance as read by title. Councilman Williams seconded the motion. Councilman Doyle questioned Page 137 of the packet in Paragraph A, where $6480 is underlined as well as crossed out. Attorney Knutson noted this was an error, the "$6480" should be deleted. Staff will see to this correction. A vote was taken on the motion, which carried unanimously. ORDINANCE NO. 3036 AN ORDINANCE of the City of Port Angeles, Washington, increasing the monthly Medic I charge from $3 to $3.50 and amending Ordinance 2274 as amended and Chapter 8.36 of the Port Angeles Municipal Code. -6- 4092 C1TY COUNCIL MEETING November 17, 1999 Revenue Sources Councilman Campbell moved to adopt the Ordinance as read by title. (Cont'd) Councilman Wiggins seconded the motion. Councilman Williams asked when the charge for non-residents was last adjusted. Fire Marshall McKeen stated it was about three years ago. Following brief discussion regarding non-resident rates, a vote was taken on the motion, which carried unanimously. Budget Hearing 3. Budget Mayor Braun reviewed the information provided by the City Manager and asked Manager Quinn for additional input. Manager Quinn gave a power point presentation on the budget and noted that, while the total expenditures of the budget is shown as $51,153,100, this amount is not adjusted for the ordinances adopted this evening. Manager Quinn listed each fund, stated the amount budgeted, and gave examples of the types of expenditures covered by the fund. The largest of the funds is the General Fund, and Manager Quinn displayed a slide showing the expenditures by object in the General Fund. He stated there is only a 1.8% increase in this budget, with services to the citizens the main concern. Capital outlay, supplies and operating support have been increased, and administration and personnel expenses have been cut back. Significant highlights to the General Fund are the increase to the beautification and landscaping and replacement of police cars. Manager Quinn felt the 2000 budget would provide quality services and approaches the challenge of 1-695 with a positive attitude. Manager Quinn reviewed the impacts of 1-695, which include loss of revenue in the Year 2000 of approximately $220,000 and loss of revenue in 2001 projects at $311,000. He reviewed the proposed cuts to expenses, which will have the largest impact on the public. They included lzansferring expenditures of $80,000 for the Marine Life Center to Lodging Tax funds, which will then impact the advertising campaign of the Visitor's Center; decreasing money for community services by $10,500; reducing the Police budget by $50,000 in capital expenses; and reducing Fire and Parks budgets by $30,000 each. Manager Quinn stressed the importance of public input in the budget planning process. Staffwill follow up on any suggestions received, and a meeting will.take place prior to the adoption of the budget on December 7, 1999. Manager Quinn offered to answer any questions and welcomed any comment. Mayor Braun opened the public hearing at 9:02 p.m. Paul Lamoureux, 602 Whidby, complimented Manager Quinn on the budget presentation and thanked all those involved in the budget process. Mr. Lamoureux asked for clarific, ation on the first slide shown, on the section labeled Intergovernmental. It appeared that there was a $200,000 reduction for 2000, but it showed as more than 1% increase. Craig Miller, 230 E.. Fifth Street, reminded the Council he had represented the Port Angeles Pub, Tavern and Lounge Association in asking for a reduction in the amount paid for gambling tax. He felt that, in light of 1-695, this was a difficult time to make such a request; however, this tax is regressive and must be scrutinized. His clients want the Council to know that they will return next budget time to again address this issue. Manager Quinn stated that the gambling taxes were discussed during the budget meetings. This tax generates approximately $92,000 per year in revenue and in reviewing the issues, it was a conscious decision by the Committee to recommend not to change the gambling tax. Charles LaBer, 401 Whidby, complimented Manager Quinn on the budget presentation. He understood the need for budget cuts but asked that the Parks budget not be cut by $30,000. He asked that staff look into increasing the Parks budget by $30,000 so the parks can be enjoyed more. Manager Quinn responded that the proposed budget for Parks contained a 7.3% increase. The $30,000 reduction still left it with at least a 6% increase over last year, as staff does recognize the importance of the parks and beautifying Port Angeles. There was no further testimony, and Mayor Braun closed the public hearing at 9:10 p.m -7- 4093 CITY COUNCIL MEETING November 17, 1999 Budget Hearing Councilman Wiggins asked what the total amount of increases are relative to the total (Cont'd) amount of decreases. Manager Quinn thought the figures were very close. Councilman Wiggins complimented the departments for their efforts in achieving the reductions necessary. Break Mayor Braun recessed the meeting for a break at 9:13 p.m. The meeting reconvened at 9:33 p.m. ULID #215 Ordinances Not Requiring Public Hearings Ordinance No. 3037 Ordinance No. 3038 ULID #215 Final Assessment Roll and Ordinances to Approve Assessment and Connection Charges Mayor Braun reviewed the information provided by the Public Works & Utilities Department. Director Cutler stated that staff and Council have spent a significant amount of time looking at Option A and developing Alternative B. Gary Kenworthy, Deputy Director of Engineering, explained Option B, which would result in the wastewater utility funding $575,000 of this ULID and those benefitting from it financing $276,000 of the costs. Mr. Kenworthy felt Option B would slow development, as a person owning a large piece of land would only pay for one connection; therefore, there would be no impetus for development. This was a difficult situation, but there is a Statute which allows the State to pay the assessments of people who are land rich and income poor. It becomes a lien against the property, which is payable when the land is subdivided. Mr. Kenworthy stated that staff recommends Option A as presented at the October Council meeting. Discussion followed, and Mr. Kenworthy responded to questions and provided clarification. At Councilman Williams' request, Mr. Kenworthy explained how the number of lots per parcel of land was determined. Those residents with multiple hook ups have been notified of the assessment. Councilman Doyle moved to approve Option A adjustments to the final assessment roll and approve the roll. Councilman Wiggins seconded the motion. All Couneiimembers voted in support of the motion, with the exception of Councilman Williams, who abstained. Because abstentions are counted as affirmative votes, the motion carried unanimously. Mayor Braun read the Ordinance by title, entitled ORDINANCE NO. 3037 AN ORDINANCE of the City of Port Angeles, Washington, approving and confirming the final assessment roll for Utility Local Im- provement District No. 215, which has been created and established for the purpose of financing sanitary sewer improvements within the Upper Golf Course Road area of the City, as described in Ordinance No. 2939, as amended, and levying and assessing the the amount thereof against the lots, tracts, parcels of land and other property shown on said roll. Councilman Campbell moved to adopt the Ordinance as read by title, citing Findings 1 - 9 and Conclusions 1 - 4, as set forth in Exhibit "A" which is attached to and becomes a part of these minutes. Councilman Wiggins seconded the motion, which carried by a majority vote with Councilman Williams voting in opposition. Mayor Braun read the second Ordinance by title, entitled -8- 4094 CITY COUNCIL MEE-q]NG November 17, 1999 ULID #215 ORD1NANCENO. 3038 Ordinance No. 3037 Ordinance No. 3038 AN ORDINANCE of the City of Port Angeles, (Cont'd) Washington, establishing the charges for connection to the Upper Golf Course Road sanitary sewer and establishing Chapter 13.72 of the Port Angeles Municipal Code. Councilman Doyle moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion. Councilman Doyle questioned the intent of Section 6 in the Ordinance, and Attorney Knutson indicated notification of this connection charge would be provided to the Auditor's office, as well as those property owners inside and outside the ULID. A vote was taken on the motion, which carried unanimously. Amendment to Civil Resolutions Not Requiring Public Hearings Service Rules Resolution No. 19-99 Amendments to Civil Service Rules and Regulations Mayor Braun reviewed the information provided by the Human Resources office and asked Bob Coons, Human Resources Manager, for additional information. Mr. Coons responded to questions and provided clarification. Mayor Braun then read the Resolution by title, entitled RESOLUTION NO. 19-99 A RESOLUTION of the ~ity of Port Angeles, Washington, amending the rules of the Civil Service Commission relating to the composition of the interview Boards and classified positions in Civil Service. Councilman Doyle moved to pass the Resolution as read by title. Councilman Wiggins seconded the motion, which carried unanimously. North Olympic Peninsula Other Considerations Builders Assn. Presentation 4. North Peninsula Builders Association Presentation re: Salmon Lawsuit Roger Wheeler, 514 Irving Jacobs Road, State Director of the Washington Building Association, provided background, history, and membership information on the North Olympic Builders Association and the Washington Building Association. Mr. Wheeler introduced Trent Matson, lobbyist for the Building Industry of Washington State, who is very involved in the salmon recovery issue. The Builders Assn. is very concerned by this issue and is attempting to well educate the cities and counties on its importance. Mr. Matson gave a presentation regarding the lawsuit filed in federal district court against the National Marine Fisheries Service (NMFS). This suit charges NMFS with violation of numerous federal laws by continually allowing overharvest and predation of Washington salmon and by improperly listing runs of salmon under the Endangered Species Act. Mr. Matson concluded his presentation by asking the Council's support of the lawsuit. Discussion ensued, and Mr. Matson and Attorney Knutson responded to questions posed by the Council and provided clarification of certain issues. Mayo/' Braun felt more information was necessary before this decision could be made. Attorney Knutson was directed to research this subject and bring a recommendation back to a future Council meeting. Mr. Matson and members of the North Olympic Builders Association thanked the Council for its time and attention to this matter. Appointment to Utility 5. Appointment of lndustrial Representative to Utility Advisory Committee Advisory Committee Mayor Braun reviewed the information provided by Councilman Campbell as Chair of the Utility Advisory Committee. Councilman Campbell pointed out that the Council representatives to the UAC had interviewed Mr. Reed and were unanimous in their recommendation that Mr. Reed be appointed to replace Mr. Michalczik. -9- 4095 CITY COUNCIL MEETING November 17, 1999 Appointment to Utility Councilman Doyle stated that while the memo states Mr. Reed would be representing Advisory Committee Daishowa, in truth he would be representing the whole industrial community. (Cont'd) Councilman Campbell moved to appoint Dean Reed as the industrial representative to the Utility Advisory Committee for the period, January 1, 2000 - December 31, 2003, and further, that Mr. Reed be authorized to fulfill his current obligation to the Planning Commission to the end of his current term which expires March 1, 2000. Councilman Wiggins seconded the motion, which carried unanimously. Mayor Braun reminded Manager Quinn to send a thank you to Mr. Michalczik for his years of service to that Committee. INFORMATION: Manager's Report Manager Quinn pointed out several memos in the packet including the storm damage status update and the Carnegie Library restoration project. He reminded the Council that there is a vacancy on the AWC Board for District 12, which includes Port Angeles. Applications are due by December 9, 1999, and Manager Quinn encouraged Council members to consider this position. Councilman Campbell thanked the Finance Committee, Finance Department, and the Department Heads for the work involved in putting together and reviewing the budget. ADJOURNMENT: The meeting was adjourned at 11:00 p.m. l~ec'ky ~. UI~,~ Cler]~ ! .... 3 Gar'~B~aun, ~]~layor - - 10- 4096 Exhibit "A" BEFORE THE CITY COUNCIL OF PORT ANGELES, WASHINGTON IN THE MATTER OF FINAL ASSESSMENT ROLL FINDINGS AND CONCLUSIONS FOR UTILITY LOCAL IMPROVEMENT DISTRICT 215 FINDINGS 1. On December 17, 1996, the Port Angeles City Council conducted a public hearing on the creation of Local Improvement District (LID) 215 for the purpose of financing the construction of sanitary sewer improvements for the newly annexed Upper Golf Course Road area in the southeastern portion of the City. All property owners within the proposed LID were notified of the public hearing. One property owner spoke in favor of creating the LID, and no property owners presented objections. Following the public hearing, the Council adopted Ordinance 2939 creating LID 215. 2. The City reviewed various assessment methods and determined that the fairest way of allocating the costs of the improvements among the property owners was the "equivalent service connection" method rather than the "zone and termini" or any other recognized assessment method. These other assessment methods are more fair when applied to street improvements and less fair when applied to sewer improvements, because they give more weight to the amount of property rather than the number of connections that each property would support. The equivalent service connection method assesses property owners based on the actual number of service connections to which their property would be entitled. 3. Using the equivalent service connection method, the City Engineer determined the number of sewer connections that would be necessary to serve each parcel of property within the LID, based on the number of lots into which each parcel could be reasonably subdivided and taking into account all expected development factors, including potential for subdivision and reductions in land area due to easements, road dedication requirements, topography, wetlands, and zoning setbacks. After determining the reduction in developable land area, the City Engineer divided the remaining net area by 15,000 square feet, which reflects the 9,000 square foot zoning lot limitation in the RS 9 zone together with a reasonably expected 2/3 yield of developable land. - 1 - 4097 4. During the course of the project, significant cost overruns were experienced due to such factors as inclement weather. However, the City decided to absorb much of this additional cost and instead attempt to recoup it from furore development that could potentially occur outside of the LID. Accordingly, although the preliminary assessment per service connection was $4,766 and the final assessment would have been $11,362, the City's decision to absorb a significant portion of the increased cost has reduced the final assessment to $7,101.36 5. On June 1, 1999 the City Council adopted Ordinance 3020 revising LID 215 into a Utility Local Improvement District (ULID 215), which allowed for a lower interest rate on the bonds issued to finance the improvements and which thereby benefitted the property owners by reducing their assessments. 6. On June 15, 1999, the City Council conducted a public hearing on the final assessment roll for ULID 215 and considered objections to the proposed assessments. 7. At the public hearing, the Council received written objections from seven property owners, five of whom also presented testimony in person at the public hearing. None of the property owners presented any expert or other evidence of appraisal values and benefits establishing that the assessments were greater than the benefits to their property. Nor did any property owners present evidence or raise the issue as to whether or not their property was assessed proportionately in relation to other parcels. 8. Following the public hearing, the City Engineer recommended that the final assessment roll be modified by reducing three of the property owners' assessments from multiple to single service connections. This was based on the fact that their property would reasonably be expected to support only one single family residential development, primarily because the three properties front on a private street (Woodhaven Lane) and therefore could not be subdivided unless the street were to become public. None of the other properties' assessments were increased to make up for these three reductions. 9. The City Engineer recommended not reducing the assessments of the other four property owners who protested, because there was no supporting evidence of appraisal values and benefits sufficient to show that the assessments were greater than the benefits to their property and also because of lack of substantiated evidence regarding inability to subdivide. 4098 CONCLUSIONS 1. Under the law of the State of Washington, the equitable service connection method used by the City for Utility Local Improvement District 215 is presumed to have resulted in assessments that are fair, equitable, and no greater than the special benefits to the affected property. 2. There is insufficient evidence in the record to rebut the presumptions that the final assessments for each property within ULID 215 as recommended by the City Engineer are fair, equitable, and no greater than the benefits. 3. The final assessment roll as recommended by the City Engineer is supported by the facts and presumptions as set forth in the administrative record for ULID 215 and in these Findings and Conclusions. 4. It is in the public interest and the interest of the property owners within ULID 215 for the final assessment roll to be adopted by ordinance as recommended by the City Engineer. DATED this 17th day of IXlovomher , 1999. GAR/Y B~, MA:~OR Attest: Approv)~ as to form: B~:~ J. U~, CiqClerk l--- Crai~ ~on, City A~omey G:~EG~.215