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HomeMy WebLinkAboutMinutes 11/19/2002 4806 CITY COUNCIL MEETING Port Angeles, Washington November 19, 2002 CALL TO ORDER - Mayor Wiggins called the regular meeting of the Port Angeles City Council to order at REGULAR MEETING: 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, B. Collins, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, C. Hagar, J. Harper, G. Drake, S. McLain, G. Kenworthy, M. Sanders, C. Kochanek, J. Cole, B. Peterson, T. Smith, T. Gallagher, J. Senuik, D. Estes, J. Mason, P. Sekac, and B. Coons. Public Present: G. Holka, L. Torres, D. Lee, T. Price, C. Alexander, R. Hiener, J. Heckman, L. Yaeger, P. Lamoureux, J. Hammond, M. Foley, and G. & K. Gordon. PLEDGE OF The Pledge of Allegiance to the Flag was led by Manager Quinn. ALLEGIANCE: PUBLIC CEREMONIES, Proclamation & Presentation of Distinguished Service Medal in recognition of Leland PRESENTATIONS AND L. Lee's dedication to the City of Port Angeles. PROCLAMATIONS: Mayor Wiggins asked Mrs. Lucille Lee, her son Pastor Douglas Lee, and grandson Proclamation & Austin Lee to come forward. Stating his privilege in remembering Leland Lee, he then Presentation of read a proclamation recognizing Leland L. Lee's dedication and service tothe City of Distinguished Service Port Angeles. Police Chief Riepe added that Mr. Lee was a good friend, a great Medal to Leland L. Lee volunteer and citizen, and the City will miss him deeply. Recognition of Mike Recognition of Mike McCawley's service to the City of Port Angeles - Police McCawley's Service to the Department: City Police ChiefRiepe asked Mr. Mike McCawley and his wife Debbie and daughter Dawn to come forward. ChiefRiepe explained that Mr. McCawley had been employed by the City since the mid 80's, starting out as a Reserve Officer and ending as the Animal Control Officer. He stated that Mike was an outstanding employee with a "can do" attitude and that he was personable and friendly. Chief Riepe then presented Mr. McCawley with a plaque recognizing his years of service to the City of Port Angeles and with a check from the Police Association. WORK SESSION: Presentation of Parking Garage Feasibility Study by Darrell Vange, Ravenhurst: Presentation of Parking Economic Development Director Smith provided the background and history of the GarageFeasibilitySmdyby parking garage consideration, noting that it began in 1993 as the Multi-Modal Darrell Vange, Ravenhurst Transportation Facility. In 1994, the City commissioned and completed an action plan report with the firm of E. P. Hamilton and Associates, which discussed an effort to -1- 4807 CITY COUNCIL MEETING November 19, 2002 WORK SESSION: revitalize downtownPort Angeles inparmership withthe public andprivate sectors. Mr. (Cont'd) Smith then read excerpts from the report delineating the goals of the project and, using the overhead projector, he displayed an aerial map of the downtown area depicting Presentation of Parking parking facilities that were then available and which covered about 41% of the Central Garage Feasibility Study by Business District. Darrell Vange, Ravenhurst (Cont'd) The City, in partnership with the Downtown Association, Chamber of Commerce, and others, went into action to develop a master plan for this public/private partnership and the revitalization of downtown Port Angeles. In 1997, a two -part report was presented which targeted necessary accomplishments and funding. Prior to 1997, there was virtually no investment in the downtown and, since October 1997, there has been an investment of more than $13 million in downtown PortAngeles with a net increase of 300 jobs, plus 200 jobs transferred to downtown from other areas. There has been an increase of 61 businesses and many building and facade improvements accomplished. Mr. Smith stated the City is now ready to embark on the actual construction of what was the Multi-Modal Center, now known as the Gateway Project. Due to the Gateway Project and the possible development of the Oak Street site, the City must now look at a reinvestment in parking. Rather than absorbing more of the downtown in surface level parking, the strategy is to convert some of that into one or more level parking facilities. Mr. Smith thanked Ada Holzschuh from the Downtown Association,Jim Haguewood of the Economic Development Council, Jack Harmon of Victoria Express Ferry, Wayne Barrett of Black Ball Transport Ferry, and Jim Heckman of Budget Parking for their contributions to the draft plan being presented this evening. Mr. Smith expressed hope that the Council would authorize and sanction a decision-makinggroup as representative of the stakeholders, so that this project could move forward with a final decision on the issue. He then introduced Darrell Vange of Ravenhurst Development. Mr. Vange thanked the Council for the opportunity to address this issue, and he briefly reviewed the feasibility study contained inthe packet. He pointed out that, if the Oak Street property is developed into a hotel, there will be a need for approximately 350 additional parking spaces in downtown Port Angeles during the peak summer months. Without considering the hotel, an additional 150 to 200 spaces would be needed. He then explained how he arrived at this figure, noting that the areas under discussion for building such a facility are the City Light parcel on Front Street west of Oak or the Tidelands West block on Front Street east of Oak. It is estimated that a facility of this size would cost $5.5 million to build, with a per stall price of approximately $15,000. Mr. Vange discussed possible funding options, indicating that the assumption was made that the City would contribute the necessary land and the sale of properties to the Gateway Project which would generate funding in the amount of $1.5 million for the project. Mr. Vange also felt that the Oak Street Development would be a principal beneficiary; therefore, it would contribute $1.5 million to the project, leaving $2.5 million which could be financed through parking rates of $9 per day. Mr. Vange discussed site selection, described the parking structures that could be built on the two sites under discussion, and the advantages and disadvantages to each. Mr. Vange stated he felt the Tidelands West site was best suited for this project. Mayor Wiggins asked if other sites could be considered, and Mr. Vange responded that there were other sites that could be considered if there is a willingness to spread the 350 additional spaces out over several parking areas. Mr. Smith stated it is assumed that the private sector partner would be the Oak Street property developer. The developer actually favored the City Light site, but discussions have been held with other downtown business owners regarding other sites. Mr. Smith felt the City should move forward with a parking garage to help leverage the successful development of Oak Street. Councilman Headrick inquired as to the level of current parking rates, and Mr. Vange -2- CITY COUNCIL MEETiNG 4808 November 19, 2002 WORK SESSION: and Mr. Smith stated that they range from $7.00 to $10.00 per day during the tourist (Cont'd) season. Further discussion ensued, and Mr. Smith and Mr. Vange responded to questions and provided clarification on several issues. Presentation of Parking Garage Feasibility Studyby Councilmember Rogers advised that she had attended a meeting regarding parking, and Darrell Vange, Ravenhurst she stressed that the parking issues must be addressed. During the Gateway Project, it (Cont'd) is important that the City commit to the retention of the parking spaces closest to the ferry as long-term parking. Parking must work for the tourists, merchants, and for the seasons. An action plan must happen, but she advocated that a subcommittee of the Gateway Committee address the issue of parking. Manager Quinn stated that staff was hoping to have Council verify direction. He considered the meeting attended by Councilmember Rogers as the first meeting of the subcommittee. Other people need to be involved, and it needs to move forward. Mr. Smith stated the City must make a determination on pledging resources committed to this infrastructure, which will help leverage development of the Oak Street site. Mayor Wiggins thanked Mr. Vange and Mr. Smith and asked if there was anyone present who wished to comment. Carl Alexander, 235 West 12t~ Street, was unclear how the recommendations of the study would dovetail into what is happening with the conference center. Mr. Alexander thought Mr. Ehmproposed to build a parking facility on the City Light site and utilize the 91 parking spaces across from Oak with the possibility of expanding that parking into a combination commercial/residential structure in the future. He did not see how the City could reasonably expect to get $1.5 million from the developer for Tidelands West, when he would still need 180 parking spaces to meet the requirements for his facility. Mr. Smith stated it was time to be decisive. The development of the Gateway specifications and the acquisition of Gateway property is positioning the Cityto make a decision on the parking issue. Mr. Smith reviewed discussions regarding parking held with the developer. The City must go forward with some level of action, and the developer is either with the City or not. Jack Harmon thanked Mr. Smith for looking into the parking issue, as he has been very concerned with the displacement of long-term parking. He encouraged theCouncil to continue looking into this problem and thanked all those involved in the process. LATE ITEMS TO BE Mayor Wiggins asked Councilman Williams to join Tim Smith at the podium, as there PLACED ON THIS OR was a special announcement to be made. Mr. Smith informed the Council that he was FUTURE AGENDAS: very pleased to announce that the largest graving yard on the west coast would be located in Port Angeles, thanks to Councilman Williams who brought this project to the attention of City staff. This news was met with applause by the entire audience. Councilman Williams stated he was humbled and honored to be a representative of this City. He believes in Port Angeles and was able to express that belief to others who caught the magic and carried the idea forward. Councilman Williams thanked Mr. Smith, Jim Haguewood of the EDC, the Port of Port Angeles, and all those who helped make this a reality. Councilmember Rogers stated that Councilman Williams asked the question, "Why not Port Angeles?" Everyone should ask this question for any opportunity to benefit the City. Mayor Wiggins, as a long-time member of the timber community, was happy to see the united front presented as to accepting of the idea. Manager Quinn asked to remove item E. 4. from the agenda. It will be brought back to a future meeting. Gus Holka, 620 S. Liberty Street, thanked Manager Quinn and City staff for helping resolve a problem he was having in front of his home involving his driveway. -3- 4809 CITY COUNCIL MEETING November 19, 2002 LATE ITEMS TO BE Paul Lamoureux, 602 Whidby Street, apologized to the City Council for remarks he had PLACED ON THIS OR made at the previous meeting regarding water rate increases. He misunderstood the FUTURE AGENDAS: rates, but has since met with City staff and has gained a better understanding. Mr. (Cont'd) Lamoureux also stated that he felt the general public did not understand the stormwater plan that was presented in September. He felt that stormwater problem prevention and maintenance are truly needed, and that a local community-sensitiveplan will arise in the not too distant future. Mayor Wiggins stated that he would be leaving the meeting early as he had some personal issues to deal with, and Deputy Mayor Campbell would chair the remainder of the meeting. Mayor Wiggins asked to move the next City Council meeting from December 3 to December 2 to accommodate Councilman Campbell's travel. Also, Mayor Wiggins met with Gary Cohn and asked that Mr. Cohn be added to the January 7, 2003, agenda to discuss the upcoming School District levy. Mayor Wiggins asked if Steve Oliver could be appointed as the Citizen-at-Large member of the Hurricane Ridge Public Development Authority for another four-year term. Councilmember Erickson moved to appoint Steve Oliver for another four- year term as a Citizen-at-Large to the Hurricane Ridge PDA. Councilman Williams seconded the motion. Mayor Wiggins noted that there would be no PDA without Mr. Oliver. A vote was taken on the motion, which carried unanimously. Councilman Williams asked about scheduling a work session to discuss the impacts of the graving yard. Mr. Smith stated that there was a second study that he expected to be completed by the end of this week. Councilman Rogers suggested that the Economic Development Committee, which she chairs, meet in subcommittee first and then report back to the City Council. Mayor Wiggins mentioned the informationregarding the City crew that took care of a small boy living on the street. He felt these employees should be commended. Director Cutler stated that he was uncertain as to which crew was responsible, but he was looking into it so that they could be personally thanked. Mayor Wiggins stated he was going to ask that the First Responder Initiative be placed on tonight's agenda, but he noted that ChiefRiepe had already written a letter on behalf of the City and apparently the legislation is moving forward. PUBLIC ItEARINGS - 1. Water~ Wastewater Rates (Continued from November 5, 2002): OTI-IER: Public Works & Utilities Director Cutler stated there was no formal presentation this Water-Wastewater Rates evening. He reminded the Council that he provided them with information regarding Ordinance No. 3128 raising rates by 5% in response to Councilman Williams inquiry. He did meet with Mr. Lamoureux, and he has not received any other queries on the recommendedrate increase for water of 4%, 4%, 3%, with no increase in wastewater. The recommendation from staff has not changed regarding the adoptionof the Ordinance. Director Cutler gave a brief explanation of the result of a rate increase of 5%, 5%, and 5%. Mayor Wiggins re-opened the public hearing at 7:10 p.m. Paul Lamoureux, 602 Whidby Street, asked if the 5-5-5 was brought to the Council tonight. Director Cutler stated he was asked what the impact to reserves would be if a rate increase of 5-5-5 was adopted, which he provided. However, staff is recommending that Council approve an Ordinance for rate increases of 4%, 4%, and 3% over the next three years. Mr. Lamoureux stated he supports the 4 - 4 - 3 increase, but would support a 5-5-5 increase also. There was no further testimony and Mayor Wiggins closed the public hearing at 7:15 p.m. -4- CITY COUNCIL MEETING 4810 November 19, 2002 PUBLIC HEARINGS - Discussion followed regarding the impact of future rate stabilization on reserves. OTHER: Councilman Williams thanked Director Cutler for the information regarding a 5-5-5 (Cont'd) increase and the impact on years four and five. He felt that the City would be meeting its obligations and not diminishing reserves as severely if a 5-5-5 increase with 6% Water-Wastewater Rates increases in years four and five. He was seriously concerned about the next three to five Ordinance No. 3128 years and hoped the City could retain as much rate stabilization funding as possible, (Cont' d) hoping the woodproducts industry and international paper market stabilizes and bounces back. Further discussion ensued with each Council member giving an opinion on the rate increases. Projecting three years out is not that solid, but is a prudent time frame to use. The best information the City has is for 2003 and 2004, numbers beyond that are soft. Councilman Campbell felt that minimizing the increases in water rates while maintaining a viable utility for the next year or two was the best thing to do. Councilman Rogers asked if the overall benefit to the City budget with a 5% increase did not also benefit the citizens? Councilman Erickson also felt that the City should not get in the position where current users subsidized future users, therefore she felt the 4-4-3 was a better option. Councilman Braun realized that it was difficult for people to pay these increases; therefore, it would be prudent to proceed with the lower numbers and readdress the issue in the future if necessary. Councilman Headrick was concerned over the feelings of the citizenry if the analyst and staff recommend 4-4-3 and Council summarily raises it to 5-5-5. Manager Quinn explained why staff felt the 4-4-3 option was the best option at this time. Councilmember Erickson moved to adopt the Ordinance revising water rates and amending Ordinance 3029 and Chapter 13.44 of the Port Angeles Municipal Code to reflect increases in the water rates of 4% in 2003, 4% in 2004, and 3% in 2005. Councilman Braun seconded the motion. Brief discussion followed, and Manager Quinn reminded the Council that it has the option to amend the rate Ordinance if the projections aren't tracking as estimated. Staff will monitor this and present information as necessary. A vote was taken on the motion which carried by a majority vote, with Councilman Williams voting in opposition. Mischke Street Vacation 2. Mischke Street Vacation - STV 02-03 CommunityDevelopment Director Collins stated that Mr. Mischke was out of town and unable to participate in the hearing. It was, therefore, recommended that the public hearing again be continued. Councilmember Erickson moved to continue the Mischke Street Vacation public hearing to December 2, 2003. Councilman Braun seconded the motion, which carried unanimously. Break Mayor Wiggins recessed the meeting for a break at 7:30 p.m. The meeting reconvened at 7:47 p.m., with Deputy Mayor Campbell serving as Chair. 2003 Budget Hearing 3. 2003 Budget Hearing (Continued from November 5, 2003) Using PowerPoint, Manager Quinn and Finance Director Ziomkowski reviewed the proposed expenditures for the 2003 Budget. Manager Quirm briefly reviewed the Budget Message and the City's challenges in achieving a balanced budget, including the impacts of Initiatives 695,747, and 790. The City's major efforts include finding solutions and opportunities for improvement and success, initiating construction of critical downtown improvements, and developing an equipment replacement plan, among others. This will be achieved through continued control of expenditures, performance budgeting, updating the financial forecast to ensure financial stability, evaluating positions before filling, and evaluating and enhancing revenue sources. Manager Quinn reviewed what is included in the budget and the budget process and then deferred to Finance Director Ziomkowski. -5- 4811 CITY COUNCIL MEETING November 19, 2002 2003 Budget Hearing Director Ziomkowski informed the Council that the total 2003 Budget is $68,287,023, (Cont'd) which is a 2% increase as compared to the 2002 budget. Changes to the 2003 as compared to 2002 budget include a cost-of-living increase, increases in insurance rates, elimination of vacation sell back, elimination of 1.5 positions, and assuming operation of the County Consolidated Dispatch Center. She then briefly reviewed proposed changes to the preliminary budget as well as changes to capital projects and other changes. Director Ziomkowski explained the expenses in the individual funds starting with the General Fund, which is budgeted at $13,131,293. This reflects a 1.8% increase over the 2002 budget, with major decreases inthe area of transfers to Capital Improvement Projects and Capital Outlay. Operating expenses are 2% over 2002 levels and personnel costs represent 72% of the budget and are 3.8% higher than 2002. Director Ziomkowskiexplained the funding and the major projects in the governmental capital improvement program. The Capital Improvement Program is budgeted at $3.6 million and includes the Carnegie Library, Olympic Discovery Trail, Fire Station roof repairs, Eastern Corridor Entryway, 8th Street Bridge replacement, and street and sidewalk programs. General Reserves are projected at $2.4 million, or 18% of the General Fund Budget. Lodging Tax is budgeted at $435,000 and includes the marketing program, support to special events and the Chamber of Commerce and the designation of $100,000 forthe convention center. Director Ziomkowski stated the Street budget has been challenging for the last several years, as it is increasingly difficult to find the necessary resources to meet the increased needs of street projects. The City is also dealing with a decrease in traditional revenue sources such as gas tax. An almost $1.3 million Street budget includes Street maintenance and special projects. With regard to the PenCom budget, Director Ziomkowski pointed out that, as of 2003, the City will assume responsibility for the operation and management of the County Consolidated Dispatch Center. This will mean 911 revenue support of more than $400,000 and increased maintenance support, increased personnel costs and improvements to the telephone and computer systems. Director Ziomkowskiwent on to briefly describe the Debt Service Fund, the individual utility funds (electric, water/wastewater, and solid waste utilities), and the various Utility Capital Improvement Projects. She stated that increases in the Internal Services Funds are mainly due to insurance rate increases and that, currently, continued support of the Esther Webster Fund is recommended. The Fireman's Pension Fund continues to be fiscally sound. Manager Quinn concluded the presentation by stating that staff is looking ahead. Budgeting for 2004 willbegin in February 2003 as staffpredicts it will be more difficult due to restricted revenue growth in taxes. Stronger fiscal planning and year-round budgeting will be necessary. He felt that construction activity will test community cooperation, and there will be an increased reliance on user fees for support. Mayor Wiggins re-opened the public hearing at 8:50 p.m. Robert Allman, 3208 Maple Street, spoke on behalf of the Fine Arts Center. He thanked the City for its support the past year and asked that it be continued in 2003. He stated that the Fine Arts Center was able to leave the Esther Webster Trust money alone thanks to the generosity of the City and the Friends of the Fine Art Center. Money will be drawn again from the Trust at the first of the year; however, City support is still needed and he urged the Council to accept the recommendation of the Budget Committee in this -6- CITY COUNCIL MEETING 4812 November 19, 2002 2003 Budget Hearing regard. He then introduced Jake Seniuk, the Director of the Fine Arts Center. (Cont'd) Jake Seniuk, Director of the Fine Arts Center, also thanked the Council for the financial assistance, as well as the in-kind help received from the Parks and Finance Departments. He informed the Council that the Friends will be holding a fund-raiser on December 19, 2003, at C'est Si Bon Restaurant and invited all to attend. Mr. Seniuk briefly reviewed upcoming shows and encouraged attendance at these events. Mr. Allman returned to the podium to again thank the City, stating it was getting a "lot of bang for its buck." Roger Wheeler, 514 Irving Jacob Road, stated he was very active in community youth sports programs and spoke in opposition to charging user fees for the sports fields. He stated that numbers are down and there are fewergames due to the economy. He was concerned with how user fees might affect the future of sports programs. He reminded the Council that the youth sport tournaments generated hotel/motel tax dollars, something that should be taken into consideration. Mr. Wheeler also addressed the importance of sports in keeping kids off the streets and out of trouble. He suggested maintenance of the sports fields be partnered in an attempt to defray costs and eliminate the need for the user fees. Deputy Mayor Campbell asked Mr. Wheeler for suggestions in helping maintain fields without cost to users. Mr. Wheeler suggested a partnership and volunteers. He felt both sides need to sit down and discuss the possibilities. The Dream Playground was created via volunteers, and he felt park maintenance can be accomplished the same way. Jim Lunt, 221 Lopez, President of the Port Angeles Little League, informed the Council that the City owed a debt of gratitude to Mr. Wheeler for all he has done for the City's youth and youth programs. Mr. Lunt then reada lengthy prepared statement outlining the free services received by the City thanks to the volunteer efforts of the Port Angeles Little League. These items included more than $1,000 spent and many man hours volunteered to clean up and hydroseed a section of Lincoln Park, which resulted in a project worth thousands of dollars, but costing the City nothing. Mr. Lunt feared that what he termed "a kid tax" would threaten the programs ability to add value to the parks and may affect the ability of children to take part in programs. Mr. Lunt had many questions regarding the imposition of a fee, including who would collect the fee. Billing families would probably result in the cost of billing exceeding revenues. Asking the sports organizations to collect the fees could result in more paper work and cost to that organization. Mr. Lunt proceeded to read his statement, asking many questions regarding collecting fees and reminding the Council of the many people brought to Port Angeles for sports tournaments whichbenefit the whole community. Mr. Lunt concluded by saying that he felt the various organizations should have been contacted and asked to participate in discussions regarding the problem of field maintenance. Steve Zenovic, 767 Black Diamond Road, is a member of the Board with Mr. Lunt for North Olympic Baseball and Softball. He also opposed this user fee. He stated that as an organization that puts between $10,000 and $15,000 worth of capital improvements into Lincoln Park on a yearly basis, it was frustrating to not be informed ahead of time of this possible fee increase. Mr. Zenovic stated he was also on the Board for the Youth Soccer Club, which has performed many volunteer services for the City. Hefelt there must be a parmership and discussion must be a two-way street. He reminded the Council that many of the children that play minor league baseball are the ones who do so on scholarship. Any user fee increase would then be the burden of the organization sponsoring the team and the scholarships. He asked that Council reconsider initiating this user fee. At Councilmember Rogers' request, Mr. Zenovic explained who funds the scholarships. There was no further testimony and the public hearing was continued to December 2, -7- 4813 CITY COUNCIL MEETING November 19, 2002 2003 Budget Hearing 2003. (Cont'd) Manager Quinn stated that the budget committee had put back more than $10,000 for maintenance service. With changes in priorities, the gap would not have to be $15,000. He stated that he appreciated the comments from Roger, Jim, and Steve and he agreed parmerships were necessary. Manager Quinn stated that this fee came at the very last minute as staff was attempting to balance the budget, and apologized for not having dialogue with the various sports associations. Deputy Mayor Campbell asked if the Finance Committee could address this issue again at its next meeting. Manager Quinn agreed and stated a report could be given at the next meeting. Councilman Williams stated he was against user fees and hoped another solution could be found. Councilmember Rogers stated the summary of volunteer services was important information not only for the Council, but for the community. Mr. Lunt presented the Council with a summary of volunteer services performed since 1981. CouncilmanBraun also asked that this issue be reviewedby the Finance Committee. He felt it was important to serve the needs of the children. He lauded the volunteer efforts of all those who served in the youth sports programs and encouraged the forming of a partnership between them and the City. FINANCE: 1. Design Services for Oil Handling and Warehouse Building, Project 21-21: Design Services for Oil Director Cutler reviewed the information regarding this project and explained the need Handling and Warehouse for this facility. Currently, this function is performed in the Valley Street area. Staff has Building worked hard to arrive at an appropriate solution, including investigating a partnership with the PUD and contract operations in the Puget Sound area. Neither of these options proved to be viable, and it was felt the best alternative was to design the facility for location at the corner of Lauridsen and the Tumwater Track Route. Discussion followed, and Councilman Williams asked if there were any private warehouses in the area that could be used for this purpose. Director Cutler explained that one of the requirements for this facility was to have a drainage system that will contain any spilled materials, and this wouldtake a specialized structure which would have to meet many environmental requirements. Director Cutler further stated that the location is close to the City's Corp. Yard, and it is his plan to eventually have all Public Works services located in that area in order to free the downtown space currently used by the City. Deputy Mayor Campbell stated that, unfortunately, transformer oil has the potential for contamination due to PCBs, and the City must comply with extremely difficult regulatory requirements. This is one of the reasons the cost is so high for this type of project. Councilmember Rogers informed the Council that staffhad worked hard to get the price down for this project. The issue is the environmental control restrictions. This was discussed thoroughly at the UAC meeting, and several alternatives were researched. Councilmember Erickson moved to authorize the Mayor to sign an agreement with Parametrix, Inc., for engineering/architectural design services at a cost not to exceed $25,900, and to authorize the City Manager to sign amendments to the agreement in an amount not to exceed 20% of the original contract amount. The motion was seconded by Councilman Braun and carried unanimously. Replacement of Emergency 2. Replacement of Emergency Generator for Wastewater Pump Stations: Generator for Wastewater Pump Stations Director Cutler explained that the wastewater pump stations are configured to allow for the use of an emergency generator when necessary. He then reviewed the information contained in the packet. Councilman Williams asked if there was any possibility of reimbursement from BPA or EPA, and Director Cutler responded there was not. -8- CITY COUNCIL MEETING 4814 November 19, 2002 Replacement of Emergency Councilmember Rogers stated that this was also discussed extensively by the Utility Generator for Wastewater Advisory Committee. She said that typically, State bids come in at a lower cost but, Pump Stations (Cont'd) because of the urgent need for the generator, the UAC recommended the purchase. Councilman Braun moved to authorize the Director of Public Works & Utilities to proceed with purchasing a new 60 kW generator from the State Bid in the amount not to exceed $20,200 plus 10% contingency for possible price fluctuation. The motion was seconded by Councilman Iteadrick and carried unanimously. Transmission Rate Case 3. Transmission Rate Case Settlement Settlement Power Systems Deputy Director McLain briefly summarized the information pertinent to this issue, informing the Council that this is a formal procedure which is fairly expensive and time consuming for both Bonneville and all its customers that testify in the case. Therefore, the majority of the customers sign the settlement agreement, and the rate case is averted. If the rate case is settled, it will mean an increase of approximately 2.5% in transmission costs for Port Angeles. IfBonneville's customers do not settle, it would go to a litigated rate case, and it is likely the transmission rates would increase by more than 2.5%. Couneilmember Rogers moved to authorize the Director of Public Works & Utilities to sign the settlement agreement with the Bonneville Power Administration Transmission Business Line. Councilmember Erickson seconded the motion, which carried unanimously. Mr. McLain reminded the Council that there is no guarantee that this rate case will be settled, but it is expected. CONSENT AGENDA: Councilman Braun moved to accept the Consent Agenda, to include: 1) City Council Minutes of November 5, 2002 regular meeting; 2) Check Register - November 12, 2002 - $837,798.08; 3) Electronic Payments - November 8, 2002 - $921,655.00. The motion was seconded by Councilmember Erickson. Councilmember Rogers noted a correction to the minutes, page 66, the Sign Ordinance issue, she voted no and the minutes show a unanimous vote. She also asked some questions on the check register, to which staff responded. A vote was taken on the motion, which carried unanimously. CITY COUNCIL Councilmember Rogers attended the Regional Economic Development meeting and COMMITTEE attended various other committee meetings. REPORTS: Councilman Braun attended a workshop with the Gateway Committee and a Clallam County Historical Society meeting. Councilman Braun suggested that June Robinson be invited to a future meeting regarding her research into the Port Angeles Second National City designation. He also viewed a possible site for an ice skating rink at Lincoln Park. Councilman Braun then took a moment to congratulate Police Chief Riepe and staff regarding the success in handling the recent stand-off. Deputy Mayor Campbell attended the Remembrance Day Ceremony in Victoria. While there, he learned that the City of Victoria will be receiving $900,000 in new revenue in 2003, due to a combination business/condo project being completed on the waterfront. Also, Victoria is scheduled to host 145 cruise ships in 2003, which will each carry approximately 3,000 visitors. The City of Victoria receives about $1.2 billion in tourist revenue each year. ORDINANCES NOT Property Tax Levy REQUIRING PUBLIC HEARINGS: Director Ziomkowski informed the Council that she had not yet received the numbers from the County regarding new construction. Therefore, she asked the Council to adopt 2003 Property Tax Levy the Ordinance as is, which sets the level for general property tax with a 1% increase, Ordinance No. 3129 plus any new construction. She explained how property taxes are computed following 4815 CITY COUNCIL MEETING November 19, 2002 2003 Property Tax Levy the adoption of Initiative 747, and informed the Council that the increase for 2003 Ordinance No. 3129 amounts to $32,738 in revenue to the City, plus any taxes from new construction, state (Cont'd) utilities, or annexation. The second levy to be set is the special levy, in the amount of $572,265. This includes two bond issues for the Library and the refunding bond for the Fire Hall and Senior Center. The rate must also be approved, which is $0.27 and $0.26 per thousand respectively. This can change slightly when final numbers for new construction are received. The resulting tax increase from both levies will be approximately $7.00 per year on a home valued at $150,000. Deputy Mayor Campbell read the Ordinance by title, entitled ORDINANCE NO. 3129 AN ORDINANCE of the City of Port Angeles, Washington, authorizing a 1% increase in the regular property tax levy plus any increase resulting from new construction and other specified increases in assessed valuation, determining and fixing the amount to be raised by ad valorem taxes for the fiscal year 2003, and directing the City Clerk to certify said amount to the Board of Clallam County Commissioners. Councilmember Rogers inquired as to why this Ordinance is being adopted prior to the adoption of the budget. She did not understand why Council would adopt a tax increase before adopting a budget. She felt this was backwards. Director Ziornkowski and Manager Quinn explained the process and offered clarification. Manager Quinn explained that revenues are set by a procedure by State Statute; once that is set, there is discretion on the expense side of the budget. He did not feel it was out of place to set the revenues unless Council wished to reduce the tax rate and not levy the 1% increase. Director Ziomkowski reminded the Council that the only unknown number is new construction. Director Ziomkowski asked to amend the title to read"...authorizing a 1%, or $32,738, increase in...." Councilman Braun moved to adopt the Ordinance as read by title. Councilman Headrick seconded the motion. Councilman Williams echoed the concerns of Councilmember Rogers, in that he did not feel it was proper to raise tax prior to approving the budget. Councilmember Headrick stated that revenues have to be known before adopting a budget. If this is not adopted, revenues will be less and then the budget will have to be less. Director Ziomkowski stated that revenues are always an estimate, and the only unknown number is new construction. Councilmember Rogers felt that the title should contain language that says it is State Law that it can only be 1%, as she thought the general public forgets that. The headline in the newspaper will be "City of Port Angeles Raises Taxes 1%" without the whole story being told. Director Ziomkowski asked for the title to be amended to read "...1%, or $32,738,..." as the amount must be specified. This was agreed to by both the maker and seconder of the motion. A vote was taken on the motion, which carried unanimously. RESOLUTIONS: None. OTHER 1. Laurel Street Slide Repairs Report: CONSIDERATIONS: Director Cutler made a few brief remarks and then deferred to Engineering Services Laurel Street Slide Repairs Deputy Director Kenworthy, who gave a PowerPoint presentation reviewing the history Report of this project. Mr. Kenworthy stated the project was necessary to protect the City's right-of-way, as well as the downtown fountain area and electric utility lines. The latest slide occurred in 1998, and the project was funded in 2000. Architect selection occurred; however, due to money problems associated with repairs, the scope of work - 10- CITY COUNCIL MEETING 4816 November 19, 2002 Laurel Street Slide Repairs had to be reduced. Costs kept increasing until, finally, the architect had to be released. Report (Cont'd) A design was done in-house and a design/construct contract was awarded in September 2001, but the design could not be performed as more safety factors were necessary. A change order was negotiated without success in February 2002. A geologist was hired, and design revisions were performed. Mr. Kenworthy displayed the current concept, which is a Boston ivy covered retaining wall. He provided a fuller explanation of the current slide repair concept plan, and concluded that the budget available is $160,000 and the contractor's proposal is $210,000. Additional funds of $50,000 will come from the Light Utility reserves. Mr. Kenworthy summarized the City's options, which include do nothing, rebid the project, construct the upper wall only, or construct upper and lower walls. Staff recommends proceeding with the final design and negotiate a change order with the contractor, Primo Construction, for Council approval. He further recommended delaying construction until spring. Mr. Kenworthy then responded to questions. Councilman Headrick asked if the slope continued to slip, and Mr. Kenworthy stated yes, but in smallermeasure. Councilman Headrick then asked what would happen if the City did nothing. Mr. Kenworthy stated it was a calculated risk, as the hillside had been artificially steepened. As the winters have been mild, without heavy rains, things have been fairly stable. However, severe rain and/or cold could result in serious problems occurring in the future. Discussion continued, and Mr. Kenworthy provided further information and clarification. Peter Ripley, Port Angeles Journal, stated ivy was a very damaging plant; he was concerned that ivy would become a liability to the City. Mr. Kenworthy stated that English ivy was a damaging plant, but Boston ivy was not. Councilmember Erickson moved to direct staff to proceed with finalizing the design and negotiating a final fee from Primo for completion of the upper and lower wall, with additional funding to come from the utility reserves. Staff is to bring a negotiated construction change order for Council approval and funding prior to proceeding with construction. Councilmember Rogers seconded the motion, which carried by a majority vote with Councilman tteadrick voting in opposition. PUBLIC HEARINGS - None. QUASI-JUDICIAL: INFORMATION: Manager Quinn briefly reviewed the calendar and stated that there would be a brief presentation on Parks & Recreations special events and tournaments. Parks & Recreation Report on Special Events and Park dc Recreation Special Events dc Tournaments: Economic Impact Presentation Tournaments Director of Parks & Recreation Connelly stated that special events are an ongoing success story which is largely a result of the staff. Director Connelly proceeded to introduce the staff members, to include Jerry Cole, Recreation Services Manager; Bill Peterson, Recreation Coordinator; and Dan Estes, Event Coordinator. He stated these employees are dedicated to the services they provide and are well known for their efforts throughout the State. It is through their efforts that visitors return to Port Angeles and make a positive economic impact. Director Connelly felt that this is a good example of the impact of services on economic development in the community. He then deferred to Mr. Cole, who gave a PowerPoint presentation on the events and tournaments. Mr. Cole stated that Parks & Recreation took on the job of special events seven years ago. In 1996, $15,000 was dedicated to this project from Lodging Tax, and it was estimated that about $350,000 in economic impact was realized in that first year. Mr. Cole reviewed the objectives of Special Events, described the Special Events hosted in 4817 CITY COUNCIL MEETING November 19, 2002 Parks & Recreation Report 2002, and reviewed the economic impact a visitor has in relation to production, on Special Events and distribution and consumption of goods and services. Tournaments (Cont'd) In order to arrive at the economic impact on the commumty, a variety of statistics are used which include sales and lodging tax reports among other statistics. This year, however, staff compiled a survey which was presented to team members from out of town participating in Port Angeles' tournaments. Mr. Cole then reviewed the effects of visitor spending, both direct, indirect, and induced (which he defined) and described the questionnaire used. Mr. Cole informed the Council that the survey results showed that the average size of a group traveling to Port Angeles for a special event was 3.7, and they stayed two days and one night and that 27 people traveled per team. Eleven percent stated it was their first trip to Port Angeles and 96% stated they would return to Port Angeles, and approximately 2,150 room nights were spent through the 25 events held. The average money spent per group of 3.7 is $273 and this covered, food, lodging, retail, and miscellaneous. The resources required to bring these groups into Port Angeles included about $31,000 in tax dollars and 2,265 hours of in-kind serves. Mr. Cole noted that for 2002, 25 events hosted 8,000 visitors, which made an economic impact of $980,000 with $650,000 in direct expenditures to Port Angeles businesses, supporting the equivalent of 26 full-time jobs. Over the past seven years, there have been 160 events with 41,500 visitors creating an economic impact of $5,400,000 with $3,600,000 in direct expenditures, supporting the equivalent of 160 full-time jobs. Next year, the Parks & Recreation Department will sponsor or co-sponsor 25 events, plus a new event called Northwest Games, which is an umbrella event hosting approximately 12 individual events. Mr. Cole concluded his presentation by reviewing some the challenges faced by the Department and thanked Mr. Estes and Mr. Peterson for working so diligently on these programs to make them a success. Discussion followed. Councilmember Rogers asked why the field cannot be maintained by the City with this kind of economic impact. She asked if the program needed more Lodging Tax dollars. She stated she was encouraged and confused. Manager Quinn explained that most of the money mentioned goes into the community in the form of good and services. The City only gets a very small percentage of that money back in the form of Lodging Tax and any direct fees charged by the Recreation Program to participate in the event. The amount of money received directly by the City is small, but the impact on the community as a whole is quite large. Manager Quinn felt that if the Lodging Tax was analyzed, the amount of lodging tax money generated by the Parks & Recreation Department is much larger than the $10,000 to $20,000 received by that Department by that fund. Mr. Cole stated that he had received a call from the Red Lion Manager, who stated that Special Events had directly impacted them more than 600 room rentals this past year in sports tournaments only. Councilmember Rogers wondered if the industry potential was being properly managed. Jack Harmon approached the podium to state that the industry as a whole highly values the participation of the Parks & Recreation Department. Roger Wheeler, 514 Irving Jacobs Rd., felt the Chamber of Commerce did not promote youth sports, but did support tourism and marketing. He strongly felt that this presentation should be given at a future Chamber of Commerce meeting. Deputy Mayor Campbell felt there was a connection between the Parks Department and the lodging industry and the Chamber through the Lodging Tax Advisory Committee and - 12- CITY COUNCIL MEETING 4818 November 19, 2002 Parks & Recreation Report that this subject was thoroughly aired periodically. The allocation this year to the on Special Events and Recreation Program from hotel/motel tax money is $20,000. Mr. Wheeler stated that Tournaments (Cont'd) during these distressed times, maybe this should be made better. Councilman Williams informed Mr. Wheeler that there are two Councilmembers that sit on the Chamber Board, and this subject will be brought up. Councilmember Rogers stated that a retreat is planned for December, and youth sports can be discussed again at that time. EXECUTIVE SESSION: The meeting was adjourned to Executive Session at 10:50 p.m. to discuss labor negotiations for approximately 45 minutes. RETURN TO OPEN The meeting returned to Open Session at 11:40 p.m. SESSION: ADJOURNMENT: The meeting was adjourned at 11:40 p.m. ~-ecky J. Up~n, C~ Cier~ - 13-