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HomeMy WebLinkAboutMinutes 12/09/2008 e CALL TO ORDER - SPECIAL MEETING: ROLL CALL: EXECUTIVE SESSION: RETURN TO OPEN SESSION: ADJOURNMENT: CALL TO ORDER- SPECIAL MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: e 6367 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington December 9, 2008 Mayor Braun called the special meeting of the Port Angeles City Council to order at 5 :30 p.m. Members Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams. Members Absent: None. Staff Present: Attorney Bloor and Human Resources Manager Coons. Mayor Braun announced the need for an Executive Session for one-half hour under the authority of RCW 42.30.11 0(1 )(g), to evaluate qualifications of applicants for public appointment. The Executive Session convened at 5:30 p.m. The Executive Session concluded at 6:00 p.m., and the Council convened in regular open session. No action was taken. The special meeting was adjourned at 6:00 p.m. Mayor Braun called the special meeting of the Port Angeles City Council to order at 6:05 p.m., announcing this is ajoint meeting with the Board of Commissioners of the Port of Port Angeles. Members Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams. Members Absent: None. Staff Present: Manager Osterman, Attorney Bloor, Clerk Upton, N. West, S. Sperr, T. Pierce, S. Roberds, and J. Seniuk. Port Commissioners Present: Commission President Calhoun and Commissioner McIntyre. Port Staff Present: B. McChesney, D. Hagiwara, and S. Oliver. Public Preseni: O. Campbell, P. Gagnon, J. Michalczik, A. & M. Williams, J. Hendricks, T. Ahlgren, S. Zenovic, J.Ford, S. Nixon, C. Byrnes, E. Strickland, J. LeBer, and K. Beirne. All others present in the audience failed to sign the roster. The Pledge of Allegiance to the Flag was led by Deputy Mayor Wharton. Mayor Braun welcomed the Port Commissioners, and Commission President Calhoun formally opened the special meeting ofthe Board of Commissioners. Councilmember Rogers reported that she invited Elwha Tribal Chair Frances Charles to the meeting, but Ms. Charles was unable to attend due to the death of a Tribal member. President Calhoun reported that Commissioner Schoenfeldt could not attend, as he underwent surgery this afternoon. - 1 - I 6368 CITY COUNCIL SPECIAL MEETING December 9,2008 History of Formation of Port Angeles HarborW orks Development Authority History of Formation of Port Angeles HarborWorks Development Authority:, Attorney Bloor informed those present that he and Community & Economic Development Director West would make a presentation to provide the context of what led up to the formation of the Port Allgeles HarborWorks Development Authority. Councilmember Williams clarified this is not a task force, and he requested that the local media make the appropriate correction in its reporting. - Attorney Bloor used PowerPoint slides to discuss the May 20, 2008, creation of the HarborW orks PDA, indicating that many ideas, alternatives, and options were considered before the Public Development Authority concept was pursued. At the time, there were three parallel, but separate goals: the tank on the Rayonier site related to the City's CSO Proj ect, Harbor Planning, and Remediation and Redevelopment ofthe Rayonier mill site. Attorney Bloor summarized the first goal related to the CSO Project, providing the regulatory background, information on how to deal with CSOs, and information related to the first suite of projects. He provided a review of the options on dealing with CSOs and the relationship to the tank on the Rayonier site. Director West provided a synopsis of the second goal related to Harbor Planning, and he provided background information on the need for a review of the 1989 Harbor Management Plan, and the City's ultimate decision in 2007 to take the lead on Harbor Planning. The third goal, as discussed by Director West, relates to the closure of the Rayonier Mill, the cleanup process, and discussions held between the City and Rayonier concerning remediation and redevelopment of the Rayonier site. Director West provided a brief chronology of discussions that took place from 2005 to early 2007, noting there was a paradigm shift in the approach taken to assure cleanup of the site. In 2007, Phase I Rayonier Reuse and Planning commenced, resulting in stakeholder meetings, as well as public visioning meetings that addressed a concept and critical path analysis. By late 2007, the City and Rayonier had resumed discussions on the cleanup ofthe site, and how the City might assist in that process. The parallel goals were combined, and the various options considered. Attorney Bloor reviewed the potential role of the City, the statutory authority expressly given to cities that can be exercised by the City Council, the potential creation of a separate City department, or the creation of a public development authority. Ultimately, the HarborW orks Public Development Authority was created in May, 2008, to meet the deadline for the preparation of a Biennial Budget Proposal for the Department of Ecology. Director West indicated that the City, in partnership with the Port, has the opportunity through community stewardship to create an innovative and community-based approach to solving one of the community's biggest issues. He emphasized the importance of partnering with all stakeholders in this endeavor. Mayor Braun opened the meeting for discussion, and Port President Calhoun responded to a question raised as to the Port's goals. He indicated the goals are outlined in the PDA Charter, but the Port Commission, as early as five years ago, discussed its role in the Rayonier cleanup by virtue of the Port's role in economic development and water-related issues. The Port made an early decision to reposition some of the Port properties and to purchase other properties that might better contribute to their purpose of economic development. The Rayonier property was one under consideration, so the partnership with the City provided them the opportunity to contribute to the goal for cleanup and redevelopment. The Port feels there should be broad consensus on this in the community. President Calhoun indicated the Port is interested in redevelopment of the site to provide jobs and to contribute to the economy. He addressed the priorities of environmental clean-up, human health and safety, identification and protection of Native American and cultural sites, restoration of Ennis Creek to contribute to the overall goals of the Puget Sound Partnership, the provision of a link to the Olympic Discovery Trail, and the accommodation of the City's CSO needs. Commissioner McIntyre agreed, adding there is a great deal of uncertainty surrounding the circumstances and future of the property. e - 2 - e e History of Formation of Port Angeles HarborW orks Development Authority (Cont'd) " ~ . '"\. CITY COUNCIL SPECIAL MEETING 6369 December 9, 2008" However, Rayonier, as the property owner, has certain rights and obligations of property ownership in terms of its future. Every effort must be made to reduce the level of uncertainty in order to attract private capital. He felt the property is in no productive use, and it is time to reach a conclusion regarding the future of the property and return it to a productive use while improving habitat, protecting cultural resources, and the like. Port Executive Director McChesney read a statement from Commissioner Schoenfeldt that addressed his support of the Public Development Authority, the priority of the Rayonier site cleanup, and the need to create new family wage jobs that were lost when the mill closed. Commissioner Schoenfeldt has been clear about the Lower Elwha Tribe's involvement, and he indicated the creation of the PDA was not intended to release Rayonier from liability. He felt Rayonier must be held accountable to the community, and he stressed the fact that success depends on an open public process. Director McChesney responded to a question regarding authorities statutorily granted to the Port, reviewing the mandate for economic development, the ability to issue bonds, experience in the redevelopment of waterfront parcels, and a management agreement with the Department of Natural Resources related to the tidelands. Port Attorney Oliver added that Port Districts have a broader authority with acquisition and redevelopment for industrial and commercial purposes, such as the John Wayne Marina. He also addressed the potential for local control as relates to the filled harbor areas. President Calhoun expressed the beliefthat community developments are best achieved through partnerships, such as that with the City and the Port, and he supported the investment of economic development funds from the settlement agreements in redevelopment that would serve the public well. The City Council and the Port Commissioners .engaged in discussion on such matters as to whether the formation of a new entity is the answer, whether it is cumbersome to form a new institution, and whether the new entity incurs risks and expenses and creates a situation where the constituents are kept at arms length. The benefits of the City / Port partnership were addressed, as was the desire to bring redevelopment and remediation of the Rayonier site to conclusion. The opinion was expressed that the path forward is most smooth when operating in a partnership with common goals. Discussion also centered around the need to get all questions answered, the possible cornerstone for a campaign, and the potential rallying of the community behind the process if all of the information is provided. Attorney Bloor provided clarification regarding the formation of the PDA as relates to Title 4 of the Port Angeles Municipal Code, Public Corporations. The Ordinance that formed the PDA contained language that anything in the old Ordinance would be overridden by the new Ordinance that was enacted. Lengthy discussion also focused on the need for assurances that the City wouldn't be taking on any liabilities or costs of cleanup, something that all citizens and taxpayers need to understand. Reference was made to terms contained in a draft liability transfer agreement to acquire property and clean-up, a document that was obtained through a public records request. Attorney Oliver indicated that nothing has been finalized as yet, but the City and the Port would not be so foolish as to accept liability and responsibility. He emphasized that negotiations are yet to come. '\., " , In the ensuing discussion, individual Councilmembers emphasized that clarification must be given to the public that Rayonier is totally responsible for cleanup costs and associated liabilities. Further information was sought concerning the potential purchase of the property, and Attorney Oliver indicated that something often overlooked in the discussions is that, at the end of the process, whomever ends up with the property will possess a very valuable piece of property. There will be some very pleasant capital gains realized, and a substantial asset will be put to the beneficial use of the community. Having said that, he further indicated there will be some up front cash flow needs associated with the activity, such as legal, planning, and engineering for due diligence, but the idea is to end up with a clean piece of property with a substantial economic value. Attorney Oliver also reviewed the potential for grant funds to assist in the process. - 3 - I 6310 CITY COUNCIL SPECIAL MEETING December 9,2008 History of Formation of Port Angeles HarborW orks Development Authority (Cont'd) Break ADJOURNMENT: President Calhoun noted the Port's willingness to develop infrastructure, if it results in net positive gains to the community. He emphasized the City and the Port each have exit points and will not support any provision of a deal that leaves either entity in a negative position. There are exit points throughout the process. To provide further assurance, Attorney Bloor indicated the concept is that the City will pay nothing for the land or the clean-up. Director McChesney stated the City and the Port have agreed to contribute up to $1 million in the form of loan agreements to the PDA for working capital, planning, and the like. As the process moves forward towards implementation, there may be transactional issues that can't be anticipated. Councilmember Williams stressed the fact that the seed money is separate from taxpayer money. - Discussion ensued with regard to negotiations with Rayonier and the need to preserve the City's and Port's ability to strike the best agreement. Discussion also focused on allegations that the Public Development Authority was created in violation of the Open Public Meetings Act. Attorney Bloor and President Calhoun stated that actions taken May 20, 2008, were in compliance with the Act. Commentaries were forthcoming from the City Council and the Port Commissioners that this undertaking will take time, that it involves individuals with a great deal of integrity, and that staff members involved are very qualified. Mayor Braun recessed the meeting for a break at 7:42 p.m. The meeting reconvened at 7:54 p.m. Mayor Braun requested closing comments, asking City Council members and Port Commissioners to identify issues that needed further clarification or discussion. No one raised any questions about the formation of the PDA, but other issues were identified as needing further clarification at a future time. Those issues identified all related to potential future actions. They included the need to address the timing of the process, estimated costs, zoning, and legal responsibilities for broad clean-up. It was suggested that the City and Port should meet with the Tribe to consider the Tribe's goals throughout the process. The possibility of scheduling another City/Port meeting was discussed, but no date was agreed upon at this time. Closing comments were made by President Calhoun, who spoke in support of the Public Development Authority but expressed concern that activities of the PDA had been somewhat suspended because of the uncertainties related to the PDA. Director West indicated it was always intended to involve the community in the process, and he was confident that would occur as activities progress. He reiterated this entire effort is about solving a community challenge for the benefit of the community as a whole. Through the benefit of partnerships, he was certain much would be accomplished. In closing, Mayor Braun thanked the Port Commissioners for their attendance, and he indicated a future meeting could be held if necessary. It was noted that Mr. Pendowski from the Department of Ecology had offered to come to Port Angeles to provide input from DOE's perspective. Opinions were expressed that the PDA should not suspend it's activities, but should move forward and proceed with the hiring of an Executive Director. The meeting was adjourned at 8:15 p.m. e - 4-