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HomeMy WebLinkAboutMinutes 12/05/19891478 I CALL TO ORDER SPECIAL MEETING Mayor McPhee called the special meeting of the Port Angeles City Council to order at 6:10 P.M. The purpose of the special meeting was to interview candidates for the Planning Commission vacancy. II INTERVIEW WITH CANDIDATES FOR PLANNING COMMISSION VACANCY The Council interviewed the following candidates for the vacancy on the Planning Commission: Jewell VanOss, Ray Gruver, William Anabel, Bob Winters. Mayor McPhee recessed the special meeting at 6:50 P.M. III CALL TO ORDER REGULAR MEETING Mayor McPhee called the regular meeting of the Port Angeles City Council to order at 7:00 P.M. IV PLEDGE OF ALLEGIANCE The Pledge of Allegiance to the Flag was led by Karen Pickett's Cub Scout group: members present: Christopher Kitz, Shosei Kobota, Geoffry Lowery, Joel McKeen, B. J. Pickett, Nathaniel Sanderson, and Austin Self. V ROLL CALL Members Present: Members Absent: Staff Present: Public Present: Councilman Lemon CITY COUNCIL SPECIAL /REGULAR MEETING Port Angeles, Washington December 5, 1989 Mayor McPhee, Councilmen Gabriel, Hallett, Lemon, Ostrowski, Sargent, Wight. None. Manager Flodstrom, Attorney Knutson, Clerk Maike, S. Brodhun, M. Cleland, B. Collins, L. Glenn, J. Pittis, B. Titus, D. Wolfe, B. Jones, J. Abernathy. R. Gruver, B. Anabel, B. Blore, T. Mochinski, R. French, E. Hansen, V. McBride, 0. Campbell, B. Hartley, C. Sauer, H. Berglund, L. Beil, P. Cronauer, B. King, D. Ortman, E. Brennan, G. Knutson, R. Kott, R. Becker, C. Boysen, L. Celytun, W. Spires, L. Moore, C. J. Ohlsen, D. Duncan, T. Hawksworth, H. Buck, V. Attwood, S. Anders, S. Hicks, J. Michalzik, J. VanOss, C. Cromwell, D. Hansen. VI APPROVAL OF MINUTES OF REGULAR MEETING OF NOVEMBER 21. 1989 Councilman Sargent moved to approve the minutes of the November 21, 1989, City Council meeting. Councilman Gabriel seconded the motion. offered a correction to page 2, paragraph a statement made by Manager Flodstrom. expressed by Councilman Lemon regarding the contract, Manager explained that when the City selects a firm to provide professional State law does not allow the consideration of price; therefore, the is made, based on the qualifications and capabilities of the firm and then a price is negotiated. If the price is unacceptable, the City is then allowed to use the unacceptable price as consideration for passing that firm and going to the next most qualified." The motion was voted on and carried, with Councilmen Wight and Ostrowski abstaining, as they were not present at the meeting. item 2, to add in the last "In response to a concern Flodstrom services, selection VII FINANCE 1479 CITY COUNCIL MEETING December 5, 1989 1. Request for Payment of Riddell. Williams Bill of $14.280.51 for Legal Representation on WPPSS Issues Councilman Hallett moved to authorize payment of the current Riddell, Williams bill in the amount of $14,280.51 for legal representation on WPPSS issues. Councilman Gabriel seconded the motion, which carried unanimously. 2. Consideration of Bid Award for Landfill Chipping (Contract and Equipment) Councilman Sargent requested the procedure the City would follow if boards with nails are brought to the Landfill, as she was concerned they would be thrown into the chipper, which would cause equipment breakdowns. Public Works Director Pittis replied the Department would high -grade out those types of boards. If they are burnable materials, they will be recycled. However, if they are extremely bad, they will be landfilled. Councilman Hallett questioned the request to chip tires at the Cemetery and the bid award to Redmore Corporation. Director Pittis explained the process regarding the chipping of tires and the fire hazard being caused by the large number of tires in the ravine next to the Cemetery. Currently the Department is working on the details to remove the tires from the ravine; shredding them, and placing them back into the ravine, while working out the environmental aspects with the Planning Department. This will allow the extension of the culvert and capping the ravine, which will result in a nice, gentle slope, and will improve the environmental condition of the area. Councilman Gabriel expressed his concern with the necessity of another full time employee in order to accomplish this project. Director Pittis stated if the Council should choose to do the chipping, then the person would be needed. Councilman Hallett moved that the Council pursue the purchase of chipping equipment for the Landfill; that the Council accept the bid of the equipment from Utility Equipment, Inc., for $13,882.20, and authorize the hiring of a new employee; and further, with respect to service, that the Council authorize the Public Works Department to enter into a contract with Redmore Corporation for service to chip tires at the Cemetery; providing the project can be put together within the 1989 budget of $68,000. Councilman Ostrowski seconded the motion. Speaking in support of the motion, Councilman Hallett felt this action goes toward the resolution of the problem at the Landfill, cutting down on the size and volume of the waste stream and meeting the stated goal and objective of the Council with respect to recycling, as well as preserving the length and the time of the Landfill life. It also solves the problem of surplus tires being stored in the ravine. Councilman Lemon expressed mixed feelings regarding this issue, as he saw this as a band -aid over something requiring surgery. He had spoken to a private entity which had expressed concerns to him regarding the contract and the wording of the contract. He questioned why the chipping of lumber should be done when wood is in its most solidified form as lumber. He also questioned chipping kiln -dried wood with grass clippings, asking whether it could be used for composting. He stated the private entity would have been interested in the project had it been only biodegradable products which would be used. He did not feel this was a sufficient solution to the problem. Councilman Ostrowski stated he, too, has reservations, as he was not sure that the Council has all the answers to the questions. He wondered how the County relates to this issue. He also asked how the lumber was separated as it came into the Landfill. Solid Waste Superintendent Jones replied that the lumber is customer separated materials. He also responded to some comments made by Councilman Lemon, stating the bid document on this issue requested materials 12" or smaller to be chipped. If the compost is too contaminated to give to the public to put on their gardens, that does not negate the possibility of using it for Landfill cover. Councilman Sargent stated as a member of the Recycling Committee, and being aware of the recommendations which have been made, this is the first step toward taking care of the problem which is in existence at the Landfill. However, she felt discussion should begin with the County, as 70% of the garbage is coming from the County and this issue needs to be addressed with the County. She -2- 1480 CITY COUNCIL MEETING December 5, 1989 suggested the Council, at a work session, outline an agenda to be presented to the County, making them aware they are part of this problem and need to assist the City in finding a solution. She felt the issue has been delayed too long and the Council should support the motion. Mayor McPhee addressed the Council and staff, stating it has been noted that 30% of the materials put into the Landfill is brush and should be chipped, and he did agree with that. However, the specifications on the bids required that the bidder be able to chip a 12 -inch piece of material. He felt this was excessive. Solid Waste Superintendent Jones reminded the Council that oversized material or lumber would be sawed into firewood for senior citizens and the specifications did, in fact, require this. However, he had done extensive research on the issue and found that most pieces of machinery handled materials up to 12 inches in diameter, and therefore he wrote his specifications to reflect that. Mayor McPhee expressed concern that once again the Council does not have any local vendors bidding on the project, and because of the specifications, the City is, in fact, eliminating those local contractors. He stated he would be in opposition to the motion because of the writing of the specifications which eliminate local bidding. Councilman Hallett felt the Council needed to focus on the problem at hand; the City has acted in good faith with regard to the bid specifications. Mayor McPhee raised the issue of the ban on burning by the Olympia Air Pollution Control Authority (OAPCA). He stated he had telephoned OAPCA to further check on information regarding the burning ban and spoke with Jim Wilson at the office. He was told by Mr. Wilson that OAPCA has not forbidden the City to burn at the Landfill. Solid Waste Superintendent Jones stated different messages are being sent. He had been contacted by OAPCA by phone and in writing, directing the stoppage of burning at the Landfill to be effective April 28, 1989. Following further discussion, Mayor McPhee suggested the Council table the issue to the December 19th City Council meeting in order for staff to contact the Olympic Air Pollution Control Authority regarding the burning ban; and also why is the City requiring the chipping of trees when the City does not chip trees. Councilman Wight stated he would support a delay to vote on the purchase of equipment to also determine the answer to two other questions; one being the volume data: Will the City be able to support the program on an on -going basis, eight hours a day, five or six days a week; and further, get more information on the equipment prior to purchase. He then moved that the issue be tabled until the meeting of December 19, 1989. Councilman Gabriel seconded the motion, which carried, with Councilman Hallett voting "No 3. Request for Progress Payment to Signal Electric for Lincoln and Race Signals of 851.240.89 Councilman Sargent moved to authorize progress payment to Signal Electric for Lincoln and Race Street signals in the amount of $51,240.89, less the retainage of $2,696.89. Councilman Gabriel seconded the motion, which carried unanimously. 4. Request for Final Acceptance and Payment of Alder Street, Regent Street. and East Sixth Street LIDs to Lakeside Industries of 83.462.47 Councilman Sargent moved that the City of Port Angeles approve and accept the work performed and authorize the release of retainage following the 30 -day waiting period for lien filings, and after receipt of clearances from the Department of Labor Industries and the Department of Revenue; further that final payment of $3,462.47 be made to Lakeside Industries, Inc. Councilman Ostrowski seconded the motion, which carried unanimously. 5. Request for Progress Payment to Olympic Electric For DelGuzzi Drive Signal of $6.548.35 Councilman Hallett moved to authorize progress payment to Olympic Electric for the DelGuzzi Drive signal of $6,548.35, less the retainage of $344.65. Councilman Lemon seconded the motion, which carried unanimously. -3- VIII CONSENT AGENDA Councilman Sargent moved to accept the items as presented on the Consent Agenda, including (1) Correspondence from Washington State Liquor Control Board; (2) Vouchers of $1,776,561.67; and (3) Payroll of 12 -1 -89 of $237,101.12. Councilman Gabriel seconded the motion. Following discussion of some of the items as presented, the motion was voted on and carried unanimously. IX ITEMS FROM THE CITY COUNCIL /AUDIENCE TO BE CONSIDERED /PLACED ON THE AGENDA Hattie Berglund, 1834 West Seventh Street, wished to speak on Legislative Item No. 5. David Ortman, Friends of the Earth, 4512 University Way NE, Seattle, requested to speak on Legislative Item No. 5. Mayor McPhee stated that anyone who wishes to speak to this issue will have the opportunity to do so when it is addressed by the Council. Paul Cronauer, 303 Tumwater, requested the Council allow him to speak on the Planning Commission appointment, Legislative Item No. 8. Mickie McElroy requested to speak to Legislative Item No. 7, Big Brothers /Big Sisters. Councilman Sargent noted for the Council and the audience that the City's 100th Birthday Celebration Calendar is now available at a cost of $4.50. X LEGISLATION 1. Presentation of Water Distribution Specialist 2 Certificate to Ron Becker Mayor McPhee presented to Ron Becker, employee of the City of Port Angeles, a Certificate of Competency from the Washington State Water and Wastewater Operator Certification Board Examiners as a Water Distribution Specialist 2. 2. Plannine Commission Minutes of November 14. 1989 1481 CITY COUNCIL MEETING December 5, 1989 Councilman Lemon moved to accept and place on file the Planning Commission minutes of November 14, 1989. Councilman Gabriel seconded the motion, which carried unanimously. 3. Conditional Use Permit CUP 89(11)18 Bourget Sixth "E" Streets Reauest for Permit to Allow Four Duplexes in RS -7. Single- Familv Residential District (From 11 -8 -89 Planninz Commission Minutes and Continued from 11- 21 -89) Councilman Lemon moved to deny the Conditional Use Permit for four duplexes to be placed on the proposed property, based on the following findings and conclusions: Findings: (1) Four duplexes on contiguous lots served by local streets are proposed; (2) The surrounding area is zoned and developed as an RS- 7 single family residential neighborhood; (3) The density of the subject site is proposed to increase by 25%, from six to eight dwelling units; (4) The subject site is served by necessary municipal facilities for multi family residential uses, except for arterial streets; Conclusions: (A) A Conditional use Permit for four duplexes on contiguous lots constitutes the designation of a multi family area under the Policies of the Port Angeles Comprehensive Plan; (B) The concentration of duplexes in a single area poses a land use conflict between single family and multi family uses and thereby defeats the purpose of the RS -7 Zoning District by introducing an incompatible multi family area within the single family neighborhood; (C) The subject site is not located functionally close to arterials, since projected traffic must travel throughout the single family area on local streets to access two arterials. Councilman Sargent seconded the motion. Councilman Lemon stated he was in agreement with the staff recommendation that this construction would not take place on an arterial and that a Conditional Use Permit for four duplexes on contiguous lots constitutes the designation of a multi family area which should be located by an arterial, and he felt the -4- 1482 CITY COUNCIL MEETING December 5, 1989 proposed use is degrading the integrity of what the use in the area is, currently zoned as RS -7, through the Comprehensive Plan and Zoning. Councilman Sargent felt it would not be good planning policy to agree to this request, but would be creating precedent which may occur in other residential areas, if approved. Councilman Wight requested clarification regarding the concerns. Councilman Sargent stated they are proposing to put four duplexes and she felt that three duplexes on six lots would be more appropriate, as traffic would increase on the corner. Councilman Hallett commented that he was intrigued, as the Planning Commission had recommended approval, using basically the same findings and conclusions as Councilman Lemon did for denial. Planning Director Collins stated they are similar, but they are not the same. Three additional findings were cited by the Planning Commission which modified Findings 3 and 4, and the conclusions conflict with those of the staff recommendation. Councilman Wight argued against the motion, as he was in favor of the recommendation made by the Planning Commission. He stated the property has been fallow for some length of time. It is on a fairly well developed site, in terms of infrastructure, and the dwelling density in going from three dwellings to four dwellings, all conditioned to be single story, and moving to what could be three relatively large single family dwellings. This would amount to eight residences of a smaller size as interposed in that whole general area, which is relatively low- density housing. He did not feel there would be any significant traffic impacts, as this is a viable use of the land. Council and staff discussed the implications of SEPA, the lack of testimony from the public, and the notification requirements. The motion was voted on and carried, with Councilmen Hallett and Wight voting "No 4. Reouest from Port Angeles High School Marching Band (Continued from 10- 17 -89) Jim MacDonald, representing the Port Angeles Booster Club, 922 South Laurel, stated he was available for any questions the Council might have regarding this request. Councilman Sargent asked whether Mr. MacDonald could provide any information on the breakdown of how the money will be spent. Mr. MacDonald explained the money will be given to the Booster Club which will allocate the moneys to those students who need additional funds in order to pay for the trip to Tempe, Arizona. Councilman Hallett asked Director of Parks Recreation Brodhun if he had reviewed the list of work to be done and was he satisfied with the proposed work. Director Brodhun stated yes, he had reviewed the list, and he was satisfied with it. Councilman Hallett asked Attorney Knutson if he was satisfied with regard to a contractual arrangement. Attorney Knutson stated yes, with the Booster Club coming forward as an incorporated entity which is willing to enter into a contract with the City. Councilman Hallett moved the Council contract with the Booster Club for work in the amount of $1,460; that the City Attorney draft a contract; and further, that staff negotiate with the Booster Club as to the timing and scope of work to be done. Councilman Ostrowski seconded the motion. Councilman Hallett stated in the past, the Council has supported similar activities, especially in light of the significant number of students involved and the Council's stated goal of supporting youth. He felt the request merits consideration and the support of the Council. The motion was voted on and carried, with Councilman Lemon voting "No -5- 1483 CITY COUNCIL MEETING December 5, 1989 5. Consideration of Renewal of Water Supply Contract with Daishowa and ITT Ravonier Hattie Berglund, 1834 West Seventh Street, addressed the Council regarding the water supply contract. Some of the concerns expressed by Ms. Berglund were she thought the Council should look at the current water supply and the terms of the contract; that the contract is basically the same as it has been for the past thirty years; however, she did not consider it basically the same, because the impact on the water supply changes drastically. Actual water use demands showed tremendous increases in the next five years for the Daishowa Mill in Phases I and II. The City's use is also projected to increase by 1995. She questioned whether the Elwha River water source is adequate to deliver the maximum amounts of water which the water rights holders now have in the water rights contract. She expressed concern about the age of the water line and the proposed leakage of three to six million gallons each day. She requested the Council put a clause in the new contract which would allow them to review every three to five years, based on the actual water available; that the contract should provide for City control on the allocation of water in the event of water shortages or problems with the current supply; and protection of the Fisheries project on the Elwha River. In closing, she believed any water rights contract under the City's jurisdiction merits and demands close monitoring by the City Council. Attorney Knutson cautioned the Council against making any comments with regard to what their position may be on the Daishowa expansion, due to the upcoming consideration by the Council of a Shoreline Permit for the expansion. David Ortman, Friends of the Earth, 4512 University Way NE, Seattle, addressed the concerns which the organization has with regard to the water supply contract. Their basic concern was with the impacts of the contract on the Elwha River, with lower levels limiting spawning and habitat for salmon and steelhead and other effects of low water levels. The contract does not provide for any increase in the price for the water which is to be provided. The conservation management section, in their opinion, was weak and ineffective. The contract does not call for any curtailment during low water flows. He also questioned the liability clause stated in the contract as proposed. He proposed the Council do an interim contract, if necessary, in order to address the State Environmental Policy Act issues. He cautioned the Council against approval of the proposed contract. Mayor McPhee asked Mr. Ortman how the City should determine the price of water. Mr. Ortman responded that the Bureau of Reclamation has several ways of establishing prices for water. He also did not find a water conservation incentive in the contract. He was also against the proposed ability of ITT and Daishowa to re -sell water. This will, in essence, allow the Mills to become secondary marketers themselves. Ron Rogstad, Vice President of Northwest Pulp and Chemical Operations for ITT Rayoniex Aberdeen, provided some background on the water system, stating in 1927, the City acquired the water rights from the Elwha River for the purpose of attracting and expanding the industrial base for the community. In 1939, the City's initial contract was entered into by the two pulp mills to supply them water. The contract was renewed in 1959 for another thirty years. He stated the cost of building the water line was repaid by the Mills and the Mills have borne total responsibility for repairs, maintenance, and replacement of the pipeline. He stated the contract imposes an obligation to avoid wasteful practices and to encourage water conservation. Few increases of water usage have been witnessed during the past sixty years. In closing, he urged the Council to act on the contract to protect the future of the industrial base and the future of the community. Eric Broman, 1320 Smith Tower, Seattle, provided a memorandum to the Council. Mr. Broman suggested the Council enter into an interim contract for a period of approximately one year, which would allow the Council to direct staff to look at the environmental impacts. He reminded the Council that salmon cannot swim in mud. He was concerned that the recommendation to the Council was coming at the llth hour, and cautioned the Council against the potential hammer of the State Environmental Policy Act, as he felt the notice of exemption was inadequate. Dean Reed, Assistant Plant Engineer, Daishowa, stated water is the life -blood of the operation. He felt the language in the proposed contract is -6- 1484 CITY COUNCIL MEETING December 5, 1989 significantly strengthened in the area of the Mills' obligation to maintain both the industrial water line and the conservation of water within their resources. He stated in addition to the contract language, another incentive to conserve water is that Daishowa pays a significant penalty for every gallon of water that goes through the process. The penalty comes from the amount of energy required to pump the water through the facility or heat and fiber losses, for any water that is not recycled internally, and finally, the payment of operational costs of the effluent treatment facilities. By approving the full thirty -year contract, the Council will send a strong message to the employees, the community, and the owners about the Council's commitment to the operations and the jobs they provide. Daishowa feels they are one of the economic cornerstones of the community and they are in the position, due to the efforts of the employees and the financial backing of the owners, to make the substantial investment to keep the operation going. Councilman Sargent requested that Mr. Reed respond to the statement made about low water flow and the role of the dams. Mr. Reed responded he did not feel he was in a position to answer the question with regard to the fisheries and the impact on the water source. He noted that the industrial waterline is substantially downstream from either of the dams and he assured the Council the way the dams are operated has no impact on the industrial waterline, and during times of low water flow, Daishowa releases some of the water from the dams. Norm Weeks, Association of Western Pulp Paper Workers, representing the employees of Daishowa and ITT Rayonier, asked the Council, on behalf of those employees, to approve the contract for the continuation of supplying water through the industrial water line. In reviewing the contract, it is their opinion that it does continue to protect all parties while providing a mandatory resource for the continuation of the operations of the Mills. Further stating that the organization is confident that the Council has considered the necessity of the continuation of water for the Mills and the fact that the Mills employ, directly, approximately 1,000 workers, as well as indirect employment throughout the community. He noted the tax revenues that are received by the City from the Mills and those of the residents who are employees of the Mills are likewise necessary for the continued success and growth of the City. He urged the Council's support for the authorization of the contract. Russell Bush, 101 Yesler, Suite 301, Seattle, attorney representing the Lower Elwha Klallam Tribe, presented a letter to the Council outlining some of the general considerations concerning the facts and the law relating to the potential confrontation between the City, the Tribe, and the United States over appropriation of water from the Elwha River. The letter suggests that instead of the Council approving and binding itself to a 30 -year contract, which commits it to withdraw about 100 cubic feet per second of water from the river without protection for low flows and is placing the Council on a collision course which may bring it to Federal Court over the treaty right to have sufficient flows in the River to protect the fishery, the Council enter into an interim contract. Then the City could engage with the Tribe in the discussions and studies, if necessary, of how to avoid a controversy and perhaps set up a task force. He explained to the Council some of the problems related to low flow and the rising temperature of the water, as it relates to fish. Councilman Hallett asked Mr. Bush if either he dr his clients had any correspondence with the City in the past ten years with regard to this issue. Mr. Bush stated he believed correspondence had been sent within the past year and they had met with Manager Flodstrom in October and November of 1989 and were under the impression that some sort of understanding would be reached on this issue. He stated the accommodation would be perhaps an arrangement to identify periods in which extreme low flows take place to look for reductions in withdrawals from the river or other methods of alleviating the problem. As it is now, the Council has placed the Tribe in the absolute confrontation of competition for the use of water. Mayor McPhee asked how long Mr. Bush felt negotiations may take on this issue. Mr. Bush stated they would have to determine when the study season was and the studies would need to be carried out, in part, during a warm season. This may mean at least one year to eighteen months. Jerry Hendricks, Executive Director, Port of Port Angeles, stated the discussions which the Council is entering into tonight and the decision they will have to make will have more potential impact on industrial development and economic development in this area than anything they may have in the next few -7- 1485 CITY COUNCIL MEETING December 5, 1989 months, regardless of a potential Shoreline Permit for Daishowa. The plea to put the decision off until some time in the future can have a very direct economic impact. The key to the two pulp mills being competitive is new capital investment. The issue of water, from a technical standpoint, is key to the long -term viability. The issue of Indian rights and fisheries and dam removal, etc., are issues which will go on in this community and the State for a long time. They are very complex and involved. He impressed upon the Council the importance of the decision for the current on -going programs, and he hoped the Council would favorably act upon the contract. Rachel Kowalski, 1028 West 17th Street #3, Fisheries Manager for the Lower Elwha Tribe, provided the Council with statistics regarding the impact of fish in the Elwha River. During the summer of 1989, the hatchery program experienced a loss of 11,000 coho due to low flow problems occurring and a rising temperature in the Elwha River. In 1987, the adult returning summer -fall chinook experienced a loss of 1,930 due to low flows in the Elwha River and high temperatures. A disease has broken out in the fish, called dermastidion, which is a bacteria formation in the gills of the fish. In August, 1989, there was a meeting with Manager Flodstrom to address some Tribal concerns regarding the contract. One of the major concerns was the lack of studies on the Elwha regarding water flow and temperature. The Tribe feels the studies should be initiated and completed prior to any long -term contract being consummated by the City and the Mills. She noted for the Council that she is a direct descendant of the Lower Elwha Klallam Tribe which signed a treaty with the United States Government in 1855, and in her opinion, the right to the resources in the watershed supersedes any other contracts which have been signed after the signing of the treaty. She felt the Council and other government agencies involved in this issue have a responsibility to deal with the rights of the treaty. She maintained there had not been studies done with regard to the negative impacts on the fish with the low flow and higher temperatures of the water, and the effects those have on the fish in the Elwha River. She urged the Council to consider a study regarding the negative impacts, pointing out that three Tribes are dependent on the resources which return to the River. She stated the Tribe would like to enter into negotiations, as she saw an opportunity to develop a government to- government relationship with the City and all its entities with the Lower Elwha Tribe, and urged the Council's consideration. Harold Buck, 111 Whidby, representing Olympic Memorial Hospital and Employment Security Job Services Center Employers' Advisory Council, stated he was in support of the continuation of the water contract for two major employers in the community. Olympic Memorial Hospital views ITT Rayonier as a good neighbor. ITT provides over $100,000 worth of energy by pumping hot water from the Mill site through the pipes in Olympic Memorial Hospital for heating purposes. Richard Kott, 207 Sutter Road, former Mill manager, Crown Zellerbach, stated the contract is tied to the economic well -being of the City of Port Angeles, the County, the Mills, and also to the well -being of good relationships between the Tribes and the competing agencies for the water. He addressed the Council's attention to several key points. First, the contract has been in existence for sixty }tears. The contract, as proposed, maintains the status quo while providing the City with better assurances and more authority for inspections. and so forth. Secondly, the contract is not associated with the Daishowa expansion. Thirdly, the contract is not associated with the Elwha dams. The dams, which are several miles up, do not have any effeest on the removal of water from the River. Fourth, the contract deals with the property right of the City, a water right, a right which is not negotiable. It is not an appropriate area for SEPA to evaluate. Fifth, the contract will generate $1.5 million in revenue to the City of Port Angeles over its life. This is a no -risk investment. He urged adoption of the contract and cautioned the Council not to be swayed by veiled threats. Margaret Crawford, Assistant Director, Economic Development Council, 102 East Front Street, discussed the economic relationship of the Mills and the City of Port Angeles, stating the two Mills served by the waterline are the economic underpinning of Port Angeles. They employ approximately 800 people, which represents 25% of the manufacturing employment in Clallam County, and have the highest average wage in the County. These are the well -paid jobs that contribute significantly to the stability of the community. ITT and Daishowa are adding significant value to the forest resources; thus our community reaps significant benefits. Because the original purpose of the contract was to enhance and build the community's economic base, the EDC urged the Council to continue the commitment. She noted that although the cost of the water is not -8- 1486 CITY COUNCIL MEETING December 5, 1989 increasing, the City's costs of delivering water are not being increased either. She urged the Council's adoption of the contract. Carson Boyce, Northwest Indian Fisheries Commission, supported the concerns of the Tribe. He asked Council to look into the future as to the costs the water allocation may have in the next 100 years. Ralph Stettler, Clean Air Now, P. 0. Box 1895, requested the Council put on hold any decision they were to make on this contract until after the December 21st meeting at Peninsula College with regard to the impacts of the Daishowa Mill expansion. Dorothy Duncan, Clallam County Commissioner, 213 East Tenth Street, stated that Clallam County supports the renewal of the contract and that the signing of the contract does not exclude any future determinations that could be made based on future information. She stated the Commissioners would like to remind the Council to think of the purpose of the water supply contract in the first place: attracting and expanding the industrial base of the community which relies on the employment. Renewing a successful sixty years of contract is what is before the Council. She pointed out that all parties have lived up to the agreement. The Mills have met their conservation commitments and have many dollar incentives beyond the contract terms to prevent wastage of water. In closing, she reiterated that the County Commissioners support the renewal of the contract. Larry Leonard, 1030 Olympus, concurred with Commissioner Duncan, stating the original costs of the contract were to pay off bonds. Although the Tribal concerns are valid, he pointed out that people opposed to the contract were mainly from out of town. Eric Broman briefly stated the Mills have cost incentives to eliminate waste inside the Mills themselves. The draft EIS says they are wasting a lot more water outside the Mills, at least through one pipeline. There is no environmental documentation to show how much water is being wasted between Daishowa and ITT Rayonier. He stated the Council could not make this type of decision in a vacuum without that documentation. Ted Simpson, 1066 Hunt Road, requested the Council act on the contract. Councilman Hallett asked Attorney Knutson, in light of some of the concerns which were expressed, whether or not, in his opinion, adoption of the contract would preclude addressing these concerns and whether or not there are concerns the Council has heard which do not have any correlation with the contract could be or should be addressed in some other manner. Attorney Knutson stated that under the contract the Council is committed to providing a given amount of water for thirty years and that there is no ready means Qf forcing any changes to be made to the contract after it is executed. On the other hand, there are other governmental actions available for dealing with impacts. He had discussed this issue with Tom Elwell, Department of Ecology, who was responsible for drafting the Environmental Impact Statement which was just released and on which a public hearing will be held December 21st. Mr. Elwell had indicated that even if the City grants or approves the contract as written, the Department of Ecology could conceivably condition the NPDES permit for the Daishowa Mill expansion, such that curtailment or wastage or conservation could be addressed. Attorney Knutson agreed that the dam re- licensing process, during which the removal issue is being discussed, is another means for addressing some of the issues which have been expressed. With regard to the concerns expressed about the City's liability in the event that SEPA were to later be ruled applicable to the contract and somehow the Mills incurred damages as a result, this has been discussed with the Mills during the negotiation of the contract. The Mills do not anticipate any such liability and he understood their legal position is that the operation of the Mills would continue during any litigation which would be addressing the SEPA applicability issue. It was the City's interpretation that applicability of SEPA is not a non compliance issue which would subject the City to liability, and if the Mills' attorneys, who were present in the audience, disagreed, they should so indicate now. Councilman Hallett asked Attorney Knutson's opinion if in supporting the renewal of the contract, the Council would be acting in the City's best interest while -9- 1487 CITY COUNCIL MEETING December 5, 1989 still allowing for the needs of the community; or did Attorney Knutson advocate that the Council take additional time, in light of the comments which have been made. Attorney Knutson responded that he and Manager Flodstrom had negotiated with the Mills the version of the contract the Council is currently reviewing as being in the City's best interest. The Council may determine whether or not the contract is in the City's best interest based upon the information provided by staff and the comments heard during the meeting. Councilman Lemon questioned the issue of low water flow. If there is a determination by the State that there is a problem with low flow, could there be enforcement of remedies which would supersede the City's contract. Attorney Knutson stated that State law governing the use of water has a provision which allows the Department of Ecology to establish minimum flow levels in rivers. They have never done that with regard to the Elwha, and if they were to do it, the same State law says they cannot affect existing water rights. There is an option addressed in the draft Environmental Impact Statement for the Daishowa expansion that indicates that the State could, if it does do a minimum stream flow analysis, try to condemn existing water rights to the extent that is necessary; however, condemnation would appear to conflit with the previously mentioned prohibition against affecting existing water rights. Councilman Sargent moved to authorize the Mayor to execute the proposed water supply contract with ITT Rayonier and Daishowa America. Councilman Gabriel seconded the motion. Councilman Hallett spoke in favor of the motion, as there are issues raised during the meeting which merit consideration, study, and resolution. However, he did think the contract was separate, in some ways, from those issues. He also noted in the past 60 years, there has not been any concern voiced regarding the contract. Councilman Ostrowski felt the water line was the City's lifeline and that Council must do everything it can to encourage industry to stay within the City of Port Angeles. He urged the Council's support of the contract. Mayor McPhee stated he has reservations, as it has been stated this contract is coming before the Council at the llth hour and he, too, concurred with that feeling. He expressed concern regarding the selling of our resources at less than the market price, and asked Attorney Knutson how the City can sell water when it does not know what the cost of water is. He thought the City may be liable to criticism to charge a price without any basis. Attorney Knutson said establishing price is a difficult issue that he had discussed with the Public Works Director who did not have any concerns from the utility,perspective on the amount of money being paid for the service, as the service is not costing the City any money. Mayor McPhee also questioned whether the City, if challenged, would have to recoup the cost of litigation. Attorney Knutson responded that under the contract, the City is required to defend the water right, but that there is not any standard which applies to how diligently the City has to defend the water right and the Mills have the right to assist in the defense. Councilman Wight requested Manager Flodstrom review with the Council the changes which have been incorporated into Exhibit "A" of the contract, the maintenance, repair, and replacement responsibilities of the industrial water system, as compared to the previous contract, addressing also the condition and repair of the water line. Manager Flodstrom stated the proposed contract which the staff is recommending for approval calls for frequent and routine inspection of the pipeline and the Mill -sites for water wastage or for opportunities where conservation of water can occur. The current contract, unlike the previous contract, also calls for coordinated shutdowns of the Mills, between ITT Rayonier and Daishowa. This allows for de- watering of the pipeline so maintenance and repairs can be made. The scheduled shutdown is encouraged during the periods of low flow. -10- BREAK 1488 CITY COUNCIL MEETING December 5, 1989 Mayor McPhee stated he would be opposed to the motion, as there is an asset the City owns, water, for which it is not being properly compensated. He did not see how the Council could make a commitment without being fully aware of the worth. Councilman Lemon asked whether staff felt comfortable with the amount being paid for the quantity of water. Public Works Director Pittis responded there is no good data with regard to the cost of water. Following further discussion of this issue, the question was called and the motion carried with Mayor McPhee voting "No Councilman Hallett moved to continue the agenda, as it was now past 10:00 P.M. Councilman Sargent seconded the motion, which carried unanimously. Mayor McPhee recessed the meeting at 10:05 P.M. The meeting reconvened at 10:15 P.M. 6. Reouest from Lucille Celestino to Discuss Air Ouality Issues with City Council Connor Sauer, P. 0. Box 1895, representing Clean Air Now, read a letter to the Council from Clean Air Now. Some of the highlights of the letter were that Clean Air Now is an organization formed to act concerning the poor air quality in the Port Angeles area; the impact on air quality can be found in all sectors of the community, from residential woodburning stoves to vehicle emissions, scrap pile burning at construction sites, and industrial emissions. Clean Air Now has chosen to start with the largest, most obvious, and most toxic: The emissions from the local pulp mill industries. Industry claims that air quality has greatly improved over the years, but people who live here do not feel this is the case. There is a very high level of frustration among citizens relative to the lack of response by public officials to their concerns and the implications that those concerns are irrelevant. Clean Air Now believes there is a cause for serious concern; that dioxin deserves to be seriously studied, as does sulphur dioxide, which is also very high on their list of concerns. As a group, they will continue to ask questions and search for answers. They feel the laws concerning emission standards need to be changed; the enforcement of existing laws needs to be more consistent; and the public should be educated about the risks and implications of toxic waste. It was the intention of Clean Air Now to make the Council aware of the organization so the Council would understand there is a large population in this area distressed by the poor air quality. They requested the Council be prepared to work with them in the future regarding this issue. Ralph Stettler, member of Clean Air Now, request the Council attend a meeting at Peninsula College on December 21, 1989, in which this and other topics will be discussed. His main concern was that this problem be addressed and there be a better way of monitoring the toxic emissions in'bur area. 7. Reouest from BIG BROTHERS /BIG SISTERS Organization to Use Facilities in Old City Hall Mickie McElroy, 2311 Samara Drive, representing Big Brothers and Big Sisters, requested the Council authorize the use of space at the old City Hall for an interim office for Big Brothers and Big Sisters for approximately six months to one year while the organization becomes established in the community. Councilman Hallett moved the Council direct staff to prepare a contract with Big Brothers and Big Sisters for space at the old City Hall and to bring back the details of the proposed contract to the Council at the meeting of December 19, 1989, for review. Councilman Sargent seconded the motion. Councilman Sargent asked whether this was an allowable use of City property. Attorney Knutson responded under the State Constitution, the City cannot give away or lease for free City property that has some lease value. It is possible in this situation there may be some value to the City in having someone using the building when no other organization is willing to pay. CITY COUNCIL MEETING December 5, 1989 1489 Mayor McPhee asked Attorney Knutson if there was an escape clause to be drafted into the contract which would allow the City to request the organization to leave the premises if the City should need it for other purposes. Attorney Knutson responded yes. The motion was voted on and carried unanimously. 8. Consideration of Appointment to Planning Commission Paul Cronauer, 303 Tumwater, spoke in opposition to the appointment of Jewell VanOss to the Planning Commission as it was his opinion that she could not enter into discussions in an unbiased way. r- Mayor McPhee directed Clerk Maike to poll the Council for their candidates. Councilman Gabriel voted for Bob Winters. Councilman Hallett voted for Jewell VanOss. Councilman Lemon voted for Ray Gruver. Mayor McPhee voted for Ray Gruver. Councilman Ostrowski voted for Ray Gruver. Councilman Sargent voted for Ray Gruver. Councilman Wight voted for Jewell VanOss. Ray Gruver was appointed to serve on the Planning Commission. Mr. Gruver will fill the unexpired term of former Commission member Wight. The term will expire March 1, 1992. Councilman Sargent stated there were four very excellent candidates for this vacancy and she hoped those who had not been appointed would be willing to serve on other boards and commissions as they become available. Councilman Wight concurred. 9. Public Hearing A. Consideration of 1989 -1990 City of Port AnEeles Mid Biennial BudEet Update Mayor McPhee opened the public hearing at 10:38 P.M. There being no public comment, he then closed the public hearing. The Council decided to discuss their thoughts regarding some of the issues of the budget, which would enable them to be prepared at the December 19th meeting to make a formal motion. Councilman Lemon expressed concern on several items. He suggested that Administrative Services step back and go a little slower regarding the financial system. He felt the expertise was available in the Department and suggested that clerical staff be hired through a temporary service; that the travel and education be used to the Department's best abilities to gather information regarding the financial system, and then at a later date, bring back the information in the form of a presentation to the Council. This will allow the Departiwnt to be able to review all aspects of a financial system. Secondly, he expressed concern regarding the Equipment Rental $30,000 line item for personnel, in which there is an eight -month period in which the Division is waiting for the head mechanic to return, while retaining an additional employee. K Manager Flodstrom explained that the additional employee was hired because the Shop Superintendent is on sick leave. The extra person is needed in order to keep a full work force at the shop. Upon return of the Superintendent, the Division is confronted with being only a few months away from the retirement of the Senior Mechanic. It was staff's intention to keep the extra person on until the retirement of the Senior Mechanic. Councilman Lemon expressed concern regarding the decision made by staff to keep the extra person on in the interim period. His third concern was regarding Parks Recreation merging of Divisions and the responsibilities which have been given to the Recreation Coordinator. Parks and Recreation Director Brodhun stated the job description has remained the same; however, the demands from the community have increased with regard to recreational activities within the community, especially with teen agers, and the job is now much more than it once was, because of the increased use of the Vern Burton Memorial Community Center. -12- 1490 CITY COUNCIL MEETING December 5, 1989 Councilman Lemon also was concerned about the salaries increasing in the Administration portion of the Parks Recreation Budget. Manager Flodstrom stated they would provide further information on this issue to Councilman Lemon. Councilman Hallett expressed concern that the Council has avoided, over the past several years, adding personnel to the Fire and Police Departments. He proposed adding one position in each Department to the Budget for 1990. Councilman Ostrowski concurred with Councilman Hallett's comment. Councilman Gabriel stated he has not seen anything that would convince him that the City should add personnel to the Police and Fire Departments. It was his opinion that the City of Port Angeles is running more efficiently than any other city. Councilman Sargent stated she would be in favor of adding overtime /call back to the Planning Department, replacing the door at the Fire Department, and was concerned with the Equipment Rental personnel, as well as the fuel storage areas. Councilman Wight expressed concern with the underground storage tanks, requesting that staff pursue options to do this as inexpensively as possible. He also expressed concern regarding the reservoir liner. Councilman Hallett concurred with the decision of the Council to defer Hotel/ Motel Tax funds into reserve. He felt this was a very wise decision, at least at the 25% level. However, he stated this brings the level of the Fund down to cover requests. He was in favor of funding organizations at the level of last year. With regard to the new organizations' requests, he felt the Council could deny them or could allocate money from other organizations' requests. Councilman Lemon also felt that it was in the Council's best interest to set aside 25% of the Hotel /Motel tax; further that it would be prudent to set aside $500 to the City's Centennial Committee; that the Council should not grant the request of the Port Angeles Light Opera Association, as they have accessible funds. He stated there needs to be more effort to centralize funds at the Chamber of Commerce; that the Port Angeles Downtown Association should fund its brochure through the Chamber of Commerce or the Olympic Peninsula Travel Association; further, that there were many duplicate materials presented by the TCACC. Councilman Sargent agreed regarding PALOA. She also stated there was too much duplication of ads in the magazines by the Chamber of Commerce and TCACC and that these two organizations should coordinate, as should the Port Angeles Downtown Association and the Olympic Peninsula Travel Association. Councilman Hallett suggested that a centralized effort be made by the Chamber and the TCACC; that these two organizations should get the lions' share of funds; and concurred with the comments regarding the Port Angeles Downtown Association and Olympic Peninsula Travel Association Councilman Ostrowski felt that the Clallam County Museum and Marine Lab levels of request should stay the same, and was in favor of the improvements to the Vern Burton Memorial Community Center. Councilman Wight stated that the ads of the Fair Board, the Downtown Business Association, and the Olympic Peninsula Travel Association should be funneled through either the Chamber of Commerce or the TCACC; and if need be, give the better part of the allocation to those two organizations to cover those costs. He stated the Chamber should be funded at the same level as 1989 and the TCACC have its allocation increased in recognition of the fact they have showed an active year during 1989. He also felt PALOA was solvent and expressed support for the Museum, the Marine Lab, and the Vern Burton Memorial Community Center. No formal action was taken on this item. -13- CC.122 1491 CITY COUNCIL MEETING December 5, 1989 10. Consideration of Ordinance Authorizing Interim Financing for DelGuzzi Drive LID Councilman Hallett moved to table this issue to the December 19, 1989, City Council meeting. Councilman Gabriel seconded the motion, which carried unanimously. 11. Consideration of Ordinance Establishing Drug Task Force Fund and Solid Waste Financial Assurance Fund It was the concensus of the Council to continue this item to the December 19, 1989, City Council meeting. 12. Reauest for Utility Advisory Committee Meeting After December 11: Items to Include Model Conservation Standards. Landfill Eauivment It was the concensus of the Council to continue this item to the December 19, 1989, City Council meeting. 13. Proclamation DRUNK DRUGGED DRIVING AWARENESS WEEK. December 10 -16. 1989 Councilman Hallett moved to accept the proclamation. Councilman Sargent seconded the motion, which carried unanimously. 14. Request to Authorize Mayor to Sign State Grant for Secondary Sewage Treatment It was the concensus of the Council to continue this item to the December 19, 1989, City Council meeting. XI CITY COUNCIL COMMITTEE REPORTS /LATE ITEMS Manager Flodstrom requested the Council authorize a representative to be present at the event celebrating the return of the Walkabout Program, to be held Saturday, December 9th, at 4 :00 P.M. Councilman Sargent volunteered to represent the City. XII ADJOURN TO EXECUTIVE SESSION None. XIII ADJOURNMENT Councilman Lemon moved for adjournment at 11:15 P.M. Councilman Gabriel seconded the motion, which carried unanimously. C�erk Mayor la.