HomeMy WebLinkAboutMinutes 11/18/2003 5094
CITY COUNCIL MEETING
Port Angeles, Washington
November 18, 2003
CALL TO ORDER - Mayor Wiggins called the regular meeting of the Port Angeles City Council to order
REGULAR MEETING: at 6:00 p.m.
ROLL CALL: Members Present: Mayor Wiggins, Councilmembers Braun, Campbell,
Erickson, Headrick, Rogers, and Williams.
Members Absent: None.
Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, B.
Collins, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y.
Ziomkowski, G. Kenworthy, J. Mason, P. Rose, K. Ziegler,
D. Dickson, B. Coons, M. Sanders, J. Hall, B. Wheeler, K.
Denton, and T. German.
Public Present: R. Peterson, P. Lamoureux, G. Gleason, C. Kirkman, J.
Pittis, and E. Chadd. All others present in the audience
failed to sign the roster.
PLEDGE OF The Pledge of Allegiance to the Flag was led by Councilman Headrick.
ALLEGIANCE:
PUBLIC CEREMONIES, None.
PRESENTATIONS AND
PROCLAMATIONS:
WORK SESSION: None.
LATE ITEMS TO BE Mayor Wiggins added the proposed Street Vacation for a portion of "K" Street as
PLACED ON THIS OR Agenda Item 1.2.
FUTURE AGENDAS:
Attorney Knutson added as Agenda Item 1.3. the scheduling of a Fluoride SEPA
Appeal.
Paul Lamoureux, 602 Whidby, thanked the City staff for the status report on Trail
expenses. He expressed the desire to receive status reports on such City projects as the
reservoir cover and associated water conservation, the pilot program on down spouts,
and the Brightway Solar Energy rebates. Mr. Lamoureux referenced previous
comments about the timing of the electric rate increase and the ongoing litigation. He
felt that there is rush to action without sufficient information at hand. Director Cutler
indicated the reservoir cover project has been completed, and the citizens did an
excellent job of conserving water. There won't be areport coming to the Council on
the down spouts until after winter, at which time there will have been a full season of
rain. Staff needs to study the flow characteristics in the storm drain area with the
disconnections. He understood that Mr. Lamoureux had already been informed that no
one stepped forward to participate in the Brightway Solar Energy rebate program.
Peter Ripley, 114 E. 6th, #102, addressed the Council on recent discussions concerning
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November 18, 2003
LATE ITEMS TO BE the Patriot Act. It was his understanding that various governmental entities are being
PLACED ON THIS OR asked to pass a resolution condemning the Patriot Act, and Mr. Ripley urged the
FUTURE AGENDAS: Council not to consider such an action, as the language of the resolution puts words in
(Cont'd) the mouths of citizens who support the war on terror.
FINANCE: None.
CONSENT AGENDA: Councilman Braun moved to accept the Consent Agenda, to include: 1.) City
Council Minutes of November 4, 2003; 2.) Expenditure Approval List - November 7,
2003 - $575,996.31; and 3.) Electronic Payments - November 7, 2003 -
$2,421,574.75. The motion was seconded by Councilmember Erickson and
carried unanimously.
CITY COUNCIL Mayor Wiggins noted the December 8th meeting of the Real Estate Committee has been
COMMITTEE changed to December 15th at 4:00 p.m.
REPORTS &
CALENDAR: There were no other City Council committee reports.
ORDINANCES NOT 2004 Property Tax Levy: Finance Director Ziomkowski, with the use of PowerPoint
REQUIRING PUBLIC slides, reviewed the property tax levy for 2004. The levy is to be submitted to the
HEARINGS: County by November 15 but, because the assessed valuation is not typically received
until the latter part of the month, the levy is not set until the second Council meeting
2004 Property Tax Levy of November. She discussed the two limitations that are placed on the regular property
Ordinance No. 3150 tax levy, an amount that can only be increased by 1% or the IPD index, whichever is
less. The second limit is that the maximum rate levy cannot exceed $3.10 per $1,000
assessed valuation. Director Ziomkowski clarified that the maximum figure is actually
$3.60 minus the Library District levy, which is currently $.50.
Director Ziomkowski then explained the refund levy, which constitutes the amount of
taxes to be refunded to taxpayers based on a settlement. This past year, the Court
issued a settlement for what was then Daishowa, and the City must reimburse taxes paid
for four years. The County paid the back taxes for 1999 in 2003; however, the City
must make refund payments for 2000, 2001, and 2002. These payments will be made
through 2006. Director Ziomkowski informed the Council that the refund levy cannot
exceed the statutory rate limit, but it is excluded from the levy amount limitation.
Director Ziomkowski distributed information provided by the County with regard to
the refund levy, and she explained the City's share of the refund, as well as the share
due from other tax districts. Councilman Campbell queried as to whether the City had
received a like amount in taxes in prior years, and Director Ziomkowski responded
that, theoretically, the City should not have received more than is being refunded. She
noted that no interest was due.
Director Ziomkowski then explained the calculation for the 2004 regular and special
tax levy, which results in $41,763 less than in 2003. The levy rate would be $3.76 per
$1,000 assessed valuation which, compared to 2003, would result in a $14 increase for
a $150,000 house. She recommended that the Council adopt the Ordinance, stressing
the City may not receive what is levied, as the final assessed valuation will determine
the final amount. Mayor Wiggins inquired as to whether the City had instituted a 1%
increase last year, and Director Ziomkowskiresponded the 1% had been implemented,
but the City did not receive that amount also because of the decrease in assessed
valuation. Mayor Wiggins asked about the potential for this happening again, and
Director Ziomkowski expressed the hope that the future assessed valuation will
increase based on increased sales and new construction. If the assessed valuation is,
in fact, higher, then the rate could go lower.
Mayor Wiggins wondered if there could be a reoccurrence of the situation on the
valuation of the mill and, noting the presence of County Assessor Linda Owings-
Rosenburgh, he asked for further clarification. Ms. Rosenburgh approached the
CITY COUNCIL MEETING 5096
November 18, 2003
ORDINANCES NOT podium and reviewed for the Council the circumstances surrounding the tax levy for
REQUIRING PUBLIC Daishowa and the associated refund. She indicated that, in 2001, the assessed value of
HEARINGS: Daishowa was $119,920,000 and, based on the difference after the settlement, the net
(Cont'd) amount of assessed valuation for that year was $19,233.88. Ms. Owings-Rosenburgh
explained the court case involved Clallam County and not the Assessor. She felt it
2004 Property Tax Levy could have been settled equitably, but it was not because of issues related to hiring
Ordinance No. 3150 legal assistance. She had asked for years for the Department of Revenue to do an
(Cont'd) advisory appraisal, something that will be accomplished this coming year. The method
used at the time was direct capitalization, which was a mandated and acceptable way
based on the income approach by the Department of Revenue and appraisal practices.
The direct capitalization is value-based on historical income; however, the Court and
the plaintiff chose to use the discounted cash flow, which is a projection of six years
in the future as to what economic conditions might be. That is what then generated the
settlement. During the settlement process, there was mention that if the value wasn't
lowered appropriately, it could be $35 million versus $60 million this year. Lengthy
discussion ensued, and Ms. Owings-Rosenburgh answered questions posed by the
Council. Councilman Campbell asked whether Port Angeles citizens would pay more
than the revenue derived from the over-assessed valuation, and Ms. Owings-
Rosenburgh did not believe that would occur. Mayor Wiggins observed that the issue
has not been totally solved, and he felt it important for the members of the Finance
Committee to fully understand the details.
Ms. Rosenburgh then responded to Council inquiries regarding the City's assessed
valuation; she explained that sales had been robust, but the County did not have
sufficient statistical data to warrant increasing the assessed valuation. The City is
inspected every six years with an annual statistical update. Manager Quirm felt it
would be more acceptable for the citizens to incur a smaller increase on an aimual
basis, as opposed to a significant increase every six years. Director Ziomkowski
pointed out that the City has many properties that are government owned, thus
decreasing the amount of taxable property. In the ensuing discussion, it was pointed
out that if the 1% is assessed but not collected, the City is authorized to bank the
capacity for future use. Ms. Owings-Rosenburgh was thanked for her input.
Mayor Wiggins read the Ordinance by title, entitled
ORDINANCE NO. 3150
AN ORDINANCE of the City of Port Angeles, Washington,
authorizing a 1%, or $32,657, increase in the regular
property tax levy plus any increase resulting from new
construction and other specified increases in assessed
valuation, authorizing a $60,000 tax refund levy,
determining and fixing the amount to be raised by ad
valorem taxes for the fiscal year 2004, and directing the
City Clerk to certify said amount to the Board of Clallam
County Commissioners.
Councilman I-Ieadrick moved to adopt the Ordinance as read by title. The motion
was seconded by Councilman Braun and carried unanimously.
RESOLUTIONS: None.
OTHER 1. Labor Contract - Teamsters Non-Sworn:
CONSIDERATIONS:
Human Resources Manager Coons summarized the labor contract with the Teamsters
Labor Contract-Teamsters #589 non-sworn bargaining unit, to include a retroactive cost of living increase of
Non-Sworn 1.62%, COLA's for 2004 and 2005, a new dental plan, term life insurance, and
employee co-pay of medical insurance premiums. Following brief discussion,
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5097 CITY COUNCIL MEETING
November 18, 2003
OTHER Councilman Campbell moved to approve and authorize the Mayor to sign the
CONSIDERATIONS: labor contract between the City and the Teamsters #589 for the non-sworn
(Cont'd) bargaining unit covering the period of January 1, 2003 through December 31,
2005, including retroactive wages for 2003. The motion was seconded by
Labor Contract - Teamsters Councilmember Rogers and carried unanimously. Councilmember Rogers asked
Non-Sworn (Cont'd) that a letter of appreciation be sent to the bargaining unit, thanking them for their
cooperation throughout the negotiations.
Street Vacation - "K" 2. Street Vacation - "K" Street:
Street
Councilman Williams referenced the minutes from the last Council meeting at which
time the proposed vacation ora portion of"K" Street was tabled to this meeting. The
Real Estate Committee had discussed the matter further and, because of intricacies with
the Port, it was felt appropriate to further delay action. Therefore, Councilman
Williams moved to table indefinitely the matter of the street vacation of a portion
of "K' Street. The motion was seconded by Councilman Braun and carried
unanimously.
Schedule Fluoride SEPA 3. Schedule Fluoride SEPA Appeal:
Appeal
Attorney Knutson distributed copies of a memorandumand supportive documentation
pertinent to the City's receipt of an appeal of the determination by the City's
Responsible Official, under the State Environmental Policy Act, to not require an
Environmental Impact Statement on the fluoridation proposal. That determination,
called a DNS, was based on a very extensive environmental checklist, which was
included in the materials he distributed. He asked the Council to schedule a hearing
for that appeal and, referencing a letter from the appellant's attorney, he noted
discussions had been held with the attorney agreeing that December 17th would be an
appropriate date for such a hearing. It was also agreed that, in order to streamline the
hearing, it would be advisable to provide the Council with preliminary information,
thus allowing the Council to review documents in advance. Further, pre-filed testimony
of expert witnesses will be provided so that each side would be limited to two hours of
presentation at the hearing. The Council would be free to ask questions and deliberate
beyond that time period. The Notice of Appeal was also provided in the documents
distributed, as well as a Response to Notice of Appeal, which set forth the Responsible
Official's initial response to the appeal.
Attorney Knutson informed the Council that it would be receiving a great deal of
information to review in this regard but, hopefully, the method of dealing with the issue
would allow both sides a fair opportunity to present all information in a timely and
efficient manner. He indicated that when the hearing is complete and if the Council
should decide to reject the appeal and approve the DNS, the Council could proceed
with action on the fluoridation proposal, which is to accept a gift contract with the
Washington Dental Service Foundation for the design and construction of fluoridation
facilities. The Council could take such action any time following a decision. If,
however, the Council should decide to require an Environmental Impact Statement,
then additional time would be required for the preparation of that document before the
contract could be considered.
Councilman Campbell suggested scheduling the hearing earlier than usual, as it
appeared the hearing could be rather lengthy. Attorney Knutson responded that the
parties are planning on an evening meeting; however, it would be acceptable to start
earlier. Another option would be to continue deliberations to another time, perhaps the
following evening or the week aflerChristmas. Councilman Williams felt that much
of the community's consternation was due to the Council's immediate decision
following the public hearing on fluoridation. He supported taking testimony on
December 17t~, with deliberation to follow on another date. Mayor Wiggins, noting the
upcoming holidays, felt it would be appropriate for this Council to make the decision.
CITY COUNCIL MEETING 5098
November 18, 2003
Schedule Fluoride SEPA After further discussion, it was agreed by consensus that the testimony would be heard
Appeal (Cont'd) on December 17, 2003, commencing at 5:00 p.m., with a decision to be made following
the hearing on whether to continue deliberations to another date.
Break Mayor Wiggins recessed the meeting for a break at 7:05 p.m. The meeting reconvened
at 7:18 p.m.
PUBLIC HEARINGS - None.
QUASI-JUDICIAL:
PUBLIC HEARINGS - 1. 2004 Budget Hearing:
OTHER:
With the use of PowerPoint slides, Manager Quirm opened the presentation of the 2004
2004 Budget Hearing Budget by reading the City's Vision Statement. He emphasized that, with the direction
provided by Council goals, the dedication of the employees, and the support of the
citizens, the City would provide the highest level of municipal services within available
resources. When finalized, the budget becomes the community's strongest means of
achieving desired goals. Manager Quinn enumerated some of the City's challenges,
such as increasing the need for general governmental services and street maintenance,
maintaining a high emphasis on the Capital Improvement Program, maintaining strong
support for economic development efforts, and furthering the commitment toward
providing quality services. He reviewed the City's major efforts for the coming year,
and the means by which those efforts will be accomplished. He summarized the
various facets of the budget, as well as the budget process that has been incorporated.
Manager Quinn announced that the total budget, which is balanced, equates to
$74,463,461, with $64,888,961 dedicated to operations and $9,574,500 set aside for
capital projects.
Director Ziomkowski, also with the use of PowerPoint slides, reviewed the Budget in
detail. She stated that the total proposed preliminary budget is $74,463,461, of which
87% or $64,888,961 will be dedicated to operations of the City and 13% or $9,574,500
will be dedicated to capital improvements. She reviewed changes to the 2004 budget
as compared to the 2003 budget, which included increases in insurances costs, the
elimination of half of a position, increase in equipment services rates to catch up with
replacement costs, increased personnel costs due to increases in cost-of-living, medical
insurance costs, and retirements. In addition, the City increased its support for the Fine
Arts Center.
Additional changes to the preliminary budget recommended by the Finance Committee
included a change for PenCom, due to the voter approved 1/10 of 1% sales tax for
emergency communications, which would generate $380,000 in 2004. As a result of
this tax, additional personnel is recommended for Police and PenCom. A $10,000
decrease in Debt Service funds is a result of a decrease in property tax revenue as a
result of a refund levy. The refund levy and lower than expected assessed valuation will
also decrease general property tax revenue, as compared to the preliminary budget, by
$70,863. A stormwater utility, if approved, would generate an estimated $365,000 in
revenue and expenses.
Director Ziomkowski provided a brief review of personnel changes and went on to
explain the General Fund. The total General Fund is budgeted at $14,171,502, which
is a $1,040,209 or 7.9% increase over the 2003 budget. Operating expenses are 7.7%
higher than the 2003 level, and personnel costs are 7.4% more than 2003 budgeted.
This increase is a result of a regular cost-of-living increase and a 28% increase in
medical insurance rates. Another common increase in the General Fund is associated
with Equipment Services rates for the future replacement of the City's fleet. A very
high impact on the General Fund budget was the result of several retirements. This
one-time cost will be funded by reserves. Councilman Williams suggested that, in the
future, retirement expenses be set aside as a separate line item in the budget. Director
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5099 CITY COUNCIL MEETING
November 18, 2003
PUBLIC HEARINGS - Ziomkowski then reviewed each department in the General Fund explaining the various
OTHER: increases in the individual budgets.
(Cont'd)
Director Ziomkowski explained that Capital Outlay in the amount of $34,092 will be
2004 Budget Hearing used to purchase two defibrillators for the Fire Department, a "Welcome" sign for the
Cont'd) City's east entrance, radar for the Police Department, and a CAAD - ARC Publisher
for the Public Works and Utilities Department. Equipment replacement in the amount
of $92,783 will cover unfunded replacement costs for five patrol cars, two Parks
maintenance vehicles, two Public Works Engineering vehicles and one Fire Prevention
vehicle. She also explained proposed changes to the equipment replacement policy,
which was proposed recently in that the policy would allow the Equipment Services
Fund to purchase equipment and spread the "users portion" of unfunded replacement
costs out over the years of useful life. This way a one-time expense in the General
Fund is avoided. In addition, a transfer to the CIP/Street Fund in the amount of
$200,000 will be used for the Peabody Street pavement restoration. Director
Ziomkowski said General Funds Reserves of $2.4 million represent almost 17% of the
General Fund Budget.
A proposed Capital Improvement Program for general government projects, in the
amount of $4,652,500 will fund completion of the Carnegie Library, the Gateway
Parking Garage, Fire Station roof repairs, eastern corridor entryway, 8th Street bridge
replacement design, and matching funds for the 8th Street bridge construction. Other
projects are the Valley Creek restoration, Laurel Street pavers, various street programs
and parks and community projects, and $70,000 designated for a Fire Department
pumper truck replacement.
Special Revenue Funds of $4,147,609 include Economic Development, Recreational
Activities, Lodging Tax, Street, PenCom, and Real Estate Excise Tax. Director
Ziomkowski explained each fund, the anticipated revenues, and the proposed
expenditures. Debt Service Funds in the amount of $450,377 are based on the annual
debt payments for the 1992 Refunding and G. O. Bon, the 1995 G. O. Bond for the
Library, and the 2001 Refunding and G. O. Bond. Utilities, or Enterprise Funds, are
estimated at $44,812,347 and account for 60% of the total City budget. Rates are set
to recover operating costs and fund capital and debt payment. Capital projects for this
budget are $4,922,000 or 11% of total budget. Power purchases are $20,032,800 or
45% the of utilities budget. Utility CIP projects are budgeted at $4,922,000 and
Director Ziomkowski went on to enumerate and describe the various utility projects
which included a fiber optics project, downtown watermain project phase III, pump
station improvements, and landfill bluff stabilization.
Internal Services Funds are budgeted at $5,778,008. This breaks down to $1,908.326
for Equipment Services, a 41% increase over 2003, $592,342 for Information
Technology, a $60,297 increase, and $3,277,340 for Self Insurance, an increase of 28%
over 2003. The major challenge is to cover the consistently increasing insurance costs
in this fund. The Esther Webster Truest Fund (Fine Arts Center) will continue to be
supported by the General Fund. The challenge to this fund is collecting enough
revenue to support operations. The Fine Arts Center will continue to function at a
reduced level of operation. The Firemen's Pension fund has a total budget of $37,668,
a decrease of 4% due to a reduction in the number of beneficiaries. Currently, eight
individuals are covered by this system, which is administered by the Firemen's Pension
Board. This fund remains financially sound.
Director Ziornkowski concluded by stating that in looking ahead, the 2005 budget is
projected to show a small improvement, however there is still restricted growth in
taxes. She felt that stronger fiscal planning and year-round budgeting will be necessary
to meet goals and objectives and remain within budgetary guidelines. It is important
that the City leverage financial partnerships with outside resources and felt construction
activity will test community cooperation. There will be an increased reliance on user
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CITY COUNCIL MEETING 5100
November 18, 2003
PUBLIC HEARINGS - fees for support of the various programs and there is a need to increase the City's
OTHER: assessed value, wealth, and investment in the community.
(Cont'd)
Manager Quinn indicated that, looking ahead, it appears the communityis experiencing
2004 Budget Hearing slight improvements in building permits and sales tax. He felt that efforts toward
(Cont'd) economic development may bear some fruit in future years, and he was guardedly
optimistic for the future of Port Angeles. Manager Quinn noted the emphasis on
marketing the community for tourism, cluster development, and quality of life. He felt
those efforts are coming to fruition. The coming year will see stronger fiscal planning
and year-round budgeting, an updated Comp Plan, and increased communication with
the public in terms of the web page and other means of communication. The City has
leveraged financial partnerships with outside resources, every effort is made to seek
grants and other revenue sources so that infrastructure and assets can be added to the
community without the citizens having to pay the full share. In addition, the City is
looking at revenue sharing with the County in the UGA, improvements in the
community, and coordination with community service clubs for projects to the benefit
of all. Construction activity will test the community cooperation, in that the City has
been very aggressive with its capital facility plan. Manager Quinn listed the many
projects of public improvement that will be coming to completion in the next to several
years.
In the future, Manager Quinn indicated the City will be more pressed in terms of
financial ability to handle large construction projects. For example, many funds were
expended on the 8~h Street reconstruction, so the City will not have those types of funds
in the furore. The community will need to consider bond issues or other sources of
revenue for major capital improvements, such as improving the swirmmng pool.
Manager Quinn indicated the City relies more on user fees for support. He felt the City
has tried its best to increase the assessed value, wealth, and investment in the
community. Revenue growth is an incentive and, in the 2004, the City has instituted
a new program in terms of residential infrastructure incentives so that the City can work
with developers to help them build infrastructure outside the requirements of their
development so we can encourage even further development. Concentration has been
placed on communitygrowth, community livability, and regulatory changes for a more
business and user friendly environment. Manager Quinn was pleased that the
community has actively created its own opportunities and challenges.
At Mayor Wiggins' request, Director Ziomkowski further explained the changes being
recommended for the final revenues and expenses.
Mayor Wiggins opened the public hearing at 8:10 p.m.
Jamie Mason, a Captain for the Port Angeles Fire Department, addressed the Council
on behalf of the firefighters. With the use of PowerPoint slides, Captain Mason
presented some of the Fire Department's challenges as relates to the Budget. He
provided a brief overview of the Department, the Department mission, and the areas
in which they serve the public, to include fire suppression, emergency medical response
and transport, special operations, fire prevention, public education, and disaster
management. Captain Mason showed a graph depicting the increase in emergency calls
for service since 2001. The call volume has increased by 82%, and lengthy discussion
ensued with regard to the reasons for increased calls for medical services. Captain
Mason noted that, during the same time period since 2001, the Fire Department lost one
response position and, to establish a comparison with other communities, he showed
a graph indicating that Port Angeles currently operates 9.4 firefighters below the
average. Due to being short-staffed, Captain Mason shared statistics indicating that
Port Angeles firefighters work 213 more annual hours than the average firefighter. The
result of the manpower shortage is that public programs suffer, there is decreased
firefighter safety, there is increased employee stress and leave, as well as delayed
response for second calls. Further, there is less time for quality training, as well as
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5101 CITY COUNCIL MEETING
November 18, 2003
PUBLIC HEARINGS - difficulty taking on new tasks, such as terrorism training. Captain Mason projected
OTHER: that, in order to bring the department to an acceptable level of safety and effectiveness,
(Cont'd) four firefighters and one staff person should be added to the department.
2004 Budget Hearing Discussion ensued, and the question was raised as to how much four firefighters would
(Cont'd) cost in an annual budget; Director Ziomkowski responded the cost would equate to
approximately $360,000 - $380,000. Mayor Wiggins inquired as to whether the Police
Department would have a similar position, and Chief Riepe indicated the Police
Department has needs as well, but he was unprepared to address the matter at this time.
The ensuing discussion centered around the recently increased sales tax intended for
emergency communications, as well as revenue generated by third party billing.
Captain Mason advised the Council that the Fire Department would only see
approximately 30% of the third party billing revenues.
Patty Hannah, United Way Executive Director, thanked the Council for its ongoing
support of human services in the community. Noting that human service funding was
tied to sales tax, she was pleased there was a slight increase for the 2004 Budget, as the
agencies will benefit greatly.
Gary Gleason, 2211 E. 7~ Avenue, spoke in support of the effort to form a Stormwater
Utility. He summarized some of his efforts in stream testing, emphasizing the
importance of not allowing pollutant stormwater into the various waterways. Mr.
Gleason thanked the City for its efforts to extend the Trail westward, he asked for
continuing support for a new park at Valley Creek, and he spoke of his enthusiasm for
various City-supported events held in the community such as the Big Hurt, the
hydroplane races, the marathon, and the Forest Frenzy.
Paul Lamoureux, 602 Whidby, asked about the currentinterest on reserve funds, and
Director Ziomkowski explained the rate for 2002 was approximately 2%. She
indicated she has projected a rate of 2.5% for 2004. Mr. Lamoureux cautioned the
Council in using the 9-1-1 sales tax expressly as intended by the voters, and Director
Ziomkowski clarified that the sales tax funds are intended for use by Pencom, not the
City.
John Hall, Port Angeles Fire fighter, referenced the increased call volume for the
firefighters, advising the Council that many of the patients transported require advanced
life support. The hospital frequently sends patients home rather quickly, and often
times the patients experience a downward spiral requiring EMS services. In addition,
many doctors aren't accepting new patients and many single parents need EMS services
as well.
There being no further public testimony, Mayor Wiggins closed the public hearing at
8:56 p.m. Director Ziomkowski advised the Council that it would be helpful to have
another meeting of the Finance Committee; she offered to contact the Chair,
Councilmember Erickson, to establish a meeting date. Councilman Williams moved
to continue the public hearing to December 2, 2003. The motion waSseconded by
Councilman Braun and carried unanimously.
Break Mayor Wiggins recessed the meeting for a break at 8:58 p.m. The meeting reconvened
at 9:07 p.m.
Stormwater Utility Public 2. Stormwater Utility Public Hearing:
Hearing
Ordinance No. 3151 Public Works & Utilities Director Cutler, aided by PowerPoint slides, provided an
overview of the proposal to form a Stormwater Utility; it is being proposed in order to
correct long standing flooding, erosion, and CSO problems, to leverage loan and grant
opportunities, to encourage economic development in the wastewater and stormwater
area, and to address additional costs on projects directly tied to unfunded mandates.
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CITY COUNCIL MEETING $102
November 18, 2003
Stormwater Utility Public Director Cutler indicated there are many long-standing problems that would be
Hearing addressed by the utility, such as landslides in bluff areas, as well as flooding in such
Ordinance No. 3151 areas as Fourth and Liberty, Lauridsen and Lincoln/Laurel, Lincoln north of Park
(Cont'd) Avenue, Ahlvers & Peabody, and the Red Lion area. In addition, the City must address
landslides and flooding in local creeks, and it must address the matter of combined
sewer overflows. Director Cutler showed several pictures, taken quite recently, of
specific areas in town, all of which showed the seriousness of the flooding experienced
particularly during periods of heavy rainfall.
Director Cutler related that the existing stormwater program is inadequate, and it has
been financed by Wastewater revenues, the General Fund, as well as revenues from
Solid Waste. The formation ofa Stormwater Utility would enable access to other loan
and grant opportunities provided by the Public Works Trust Funds, Cleanwater
Centennial Grants, and Salmon Recovery Programs. Director Cutler continued that an
improved stormwater effort would encourage development, share in costly
improvements, provide a focus in an orderly fashion, and would improve land values.
Director Cutler reviewed current unfunded mandates associated with stormwater
efforts: the Clean Water Act NPDES Phase II stormwater permitting, the Storm Water
Management Manual for Western Washington, and the Endangered Species Act. In
reviewing the proposed Ordinance before the Council, Director Cutler indicated the
Enterprise Fund for the Stormwater Utility is project based. Further, it adopts the
City's Stormwater Management Plan of 1996, as well as the City Urban Services
Standards & Guidelines of 1995. Director Cutler stressed that the Ordinance does not
adopt the Washington Storm Water ManagementManual for Western Washington. He
then explained the $3 per month per equivalent service unit, the single and duplex
residential property flat rate of $3 per month, and the methodology for calculating the
fee for commercial and multiple property. Exempt from paying for the utility are City,
State, and private streets that meet City standards, as well as properties that already
have an NPDES permit. Director Cutler further explained there is a provision for rate
adjustments, all billings will initially be generated by the County with the property tax
bills, and there is a discount provision for senior and low income citizens. The
Ordinance would take effect as of January 1, 2004. Director Cutler then reviewed the
projected expenses for the Stormwater Utility, the revenue from the flat rate charge,
and the fact there would be no additional staff in conjunction with the utility. Both
revenues and expenses are projected at $365,000, and Director Cutler delineated the
projects to be addressed and the associated project costs.
In summary, Director Cutler itemized certain issues to be remembered, such as the
correction of long standing stormwater problems, compromised loan and grant
opportunities, economic development, unfunded regulatory mandates, the endorsement
from the Utility Advisory Committee, and the fact that the stormwater utility would be
project based. In response to an inquiry from Councilman Williams, Director Cutler
indicated that, once the Ordinance is approved, the City could be much more aggressive
in seeking grant funds. Deputy Director of Engineering Services Kenworthy added that
the Cleanwater Grants are extremely competitive.
Mayor Wiggins inquired as to what type of credit the City might be given by the
regulatory agencies. Director Cutler felt the City's efforts in the stormwater arena
would be viewed as positive by the regulators, and Councilmember Rogers noted it is
critical to protect the NPDES permit, the criteria for which is being developed and may
be pushed out further in terms of completion. Director Collins added that a stormwater
utility would create a tool that can be used if there are other funds available, such as in
the area of salmon recovery. Attorney Knutson noted that, with regard to the
Endangered Species Act, the state federal and resource agencies could be involved in
projects such as the proposed luxury yacht marina on Ediz Hook, and that the City
could get favorable comments from the agencies if it has been proactive in taking
measures to prevent runoff of pollutants into the harbor. The efforts to protect the
harbor by treatment of stormwater would likely be viewed positively due to the positive
effect on juvenile salmonid migration in the near shore marine environment.
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5103 CITY COUNCIL MEETING
November 18, 2003
Stormwater Utility Public Councilman Braun sought further information concerning the discount to be made
Hearing available to senior and low income citizens, a provision that was further explained by
Ordinance No. 3151 Director Cutler. Mayor Wiggins opened the public hearing at 9:34 p.m.
(Cont'd)
Peter Ripley, Port Angeles Journal, asked if the $3.00 rate covers any of the costs of
the unfundedmandates. Director Cutler responded it would address incremental costs.
Claire Kirkman, North Peninsula Building Association, expressed appreciation for the
effort that Public Works has put into the revision and, speaking on behalf of the
Association, she was pleased the Washington Stormwater Manual was removed.
However, the Association just received word of the proposed Ordinance this past week
and has not had the opportunity to thoroughly review the document. She asked the
Council to continue the public hearing and not take action on the Ordinance this
evening, pending further review and comment by the Association.
Ed Chadd, 307 W. 6th, informed the Council of a presentation he heard that was given
by Dr. Richard Gannon, Professor of Chemistry and Oceanography at the University
of Washington, who is co-chair of the program on environment. Dr. Gannon, working
with an intergovernmental panel on climate change, wrote an editorial in the Seattle
Times in October, having to do with the reality of global warming. Mr. Chadd felt that
the implications of global warming for a community such as Port Angeles are such that
more frequent and worse storms will be experienced in the future. Because of warmer
and wetter winters, it is a perfect time for the community to get ahead of the problem
by addressing stormwater. To take action in this regard will result in a healthy
economy and quality of life in the area. Mr. Chadd expressed concern that large
developments are not going to pay their equivalent share of dealing with the problem
and, at some point, he felt this issue should be further reviewed in terms of what is a
fair and equitable way to share the burden in the community. Councilmember Rogers
interjected that, concerning the larger developments, stormwater management is part
of the building permit process, and the developers are spending a great deal to address
stormwater. Mr. Chadd sought clarification as to developments and the NPDES permit,
and Deputy Director Kenworthy clarified that the ordinance exemption for those with
an NPDES permit relates to, for instance, the Coast Guard and Daishowa, who have
their ownNPDES permit and don't connect to the City's system. If businesses connect
to the City's system, they will be charged the rate. Further clarification was provided
to Mr. Chadd, who reiterated the need for everyone to pay their fair share.
Paul Lamoureux, 602 Whidby, spoke in support of the formation of the Stormwater
Utility; however, he was opposed to the methodbeing incorporated for billing. He had
spoken to the County and was informed the billing would be based on land parcels.
Mr. Lamoureux felt that the amount collected should be equal to the expenses projected
by Director Cutler in next year's budget, and he felt the billing should be accomplished
through the City's utility billing process. Manager Quinn explained that the basis for
the billing is an issue of equity, as stormwater is a function of drainage and impervious
surface and, therefore, should be funded by property owners. He noted that many of
the utility accounts in the City are paid by people who live in an apartment complex as
opposed to someone living in a larger home. He further explained this is why the City
chose to bill the parcels, as the drainage from the property is what is being addressed.
Further, Manager Quinn indicated it is the City's desire to use its own utility billing
system for this purpose. However, until the time the City has all of the necessary
information and databases, it was agreed the billing could be accomplished through the
County for the short term. For now, using the County's system has been determined
to be a very efficient and cost effective solution. Further discussion ensued, and
Councilmember Rogers emphasized to Mr. Lamoureux that this billing arrangement is
for the interim only.
Councilman Headrick noted that most everyone appears to be in favor of the
Stormwater Utility. He referenced Page 86 of the packet, itemizing the components of
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CITY COUNCIL MEETING 5104
November 18, 2003
Stormwater Utility Public the purpose section and noting the Ordinance is project oriented. Further, the
Hearing Ordinance does not establish standards for stormwater, and it does not put any burden
Ordinance No. 3151 on builders. It was his recommendation that the Council proceed with adoption at this
(Cont'd) time.
Mayor Wiggins closed the public hearing at 10:01 p.m. Director Cutler responded to
Councilman Williams' inquiry as to whether the Home Builders Association had
received information on the proposed Ordinance. Director Cutler indicated there had
been a significant number of articles in the paper, and a public service announcement
was released this past week. Mayor Wiggins read the Ordinance by title, entitled
ORDINANCE NO. 3151
AN ORDINANCE of the City of Port Angeles, Washington,
establishing a stormwater utility, establishing a monthly
stormwater utility charge, providing for stormwater
regulations and for the management and operation of
the stormwater utility, and amending Ordinance 2394
and Chapter 13.63 of the Port Angeles Municipal Code.
Councilmember Erickson moved to adopt the Ordinance as read by title. The
motion was seconded by Councilman Headrick. Further discussion followed
concerning the discount provisions, after which a vote was taken on the motion,
which carried unanimously.
INFORMATION: Councilmember Rogers extended appreciation to Parks Director Connelly and staff for
their assistance with the recent Tech Fair at Olympic Medical Center.
EXECUTIVE SESSION: The meeting adjourned to Executive Session at 10:07 p.m. to discuss a matter of
potential litigation and an item of Real Estate for approximately 30 minutes.
RETURN TO OPEN The meeting returned to Open Session at 10:42 p.m.
SESSION:
ADJOURNMENT: The meeting was adjourned at 10:42 p.m.
Glenn Wiggins, Mayor e~'~Tck~J.'703t~ C~ler~' I--
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