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Agenda Packet 01/09/2010
II. ROLL CALL: - 7ORTANGELES CITY COUNCIL SPECIAL MEETING W A S H I N G T O N , U.S.A. I. CALL TO ORDER - REGULAR MEETING: 9 mQ Members Present: Mayor Di Guilio ✓ Councilmember Downie ✓ Councilmember Kidd Councilmember Mania Councilmember Nelson Councilmember Perry Staff Present: Manager Myers ✓ Attorney Bloor ✓ Clerk Hurd Led by: — 5 G. Cutler ✓ T. Gallagher ✓ D. McKeen ✓ N. West ✓ Y. Ziomkowski III. PLEDGE OF ALLEGIANCE: G: \GROUP \CLERKWORMS \Council Roll Call.wpd January 9. 2010 Other Staff Present: - 7ORTANGELES CITY COUNCIL SPECIAL MEETING Attendance Roster W A S H I N G T O N , U.S.A. DATE OF MEETING: January 9, 2010 LOCATION: Peninsula Collete, J -47A Pub Conference Room Name t64 Ca/WS f ev1.1 C: \CROUP \CLERK \FORMS \Council Attendance Roster.wpd Address CITY COUNCIL SPECIAL MEETING City Council Retreat — January 9, 2010 Peninsula College Conference Room - Port Angeles, Washington Present: Mayor Di Guilio; Councilmembers Downie, Kidd, Mania, Nelson, and Perry. Councilmembers absent: None. Staff in Attendance: City Manager Myers, T. Pierce. Staff arriving between 10:45 a.m. and 11:20 a.m.: City Attorney Bloor, Public Works & Utilities Director Cutler, Finance Director Ziomkowski, Police Chief Gallagher, Fire Chief McKeen, Director West. Public Present: Tom Callis, reporter for Peninsula Daily News, arrived at 9:15 a.m. 1. Call Meeting to Order at 9:08 a.m. 2. City Manager Goals and Objectives Councilmember Downie commended Manager Myers' efforts to reach out to the community through the City Manager Coffee events and keeping Council informed. He stressed continuing this outreach to citizens, communications with Council, and the development of a community vision. Councilmember Mania added to increase emphasis on sustainability issues and how that is related to having that community vision. Councilmember Nelson added to keep the momentum going on those goals and that Council should help Manager Myers continue that progress and continue to build on this effort. Councilmember Downie suggested continuing to work with the Lower Elwha Klallam Tribe (LEKT) in building and strengthening the relationship between the Tribe and the City. Councilmember Perry would like to see Council and City Manager continue on this path with these goals and building that relationship with LEKT. Manager Myers has been a tremendous asset and Councilmember Perry is excited about moving forward. Mayor Di Guilio — these goals are all worthy to pursue. He would like to see more opportunity to do things as publicly as possible. He offered the budget process as an example of the need to keep the community involved and informed and this includes certain utility issues. Mayor supports more work sessions and special meetings as necessary so Council can be as open as possible and do as much business as possible in public. Manager Myers encouraged Council to also keep him informed on issues, questions, and opportunities. Councilmember Perry added that emphasis needs to be on the businesses in the downtown area and with working with the Port Angeles Downtown Association (PADA) and Port Angeles Business Association (PABA) on finding ways to help revitalize the downtown. CITY COUNCIL SPECIAL MEETING Council Retreat — January 9, 2010 Councilmember Kidd emphasized tourism and the Dan Williams zip line project. She believes Port Angeles is an activity center and Council should be kept apprised on that project in particular. She would appreciate more information on a backup plan for the CSO project since we don't own the property, and more information on how other cities are dealing with the problem. She would like to continue community outreach, continue to monitor finances and policies for efficiencies and savings, and have more emphasis on customer service. She requested a report on closing of the utility counter on Friday afternoons. She would prefer to start budget meetings as early as possible in the year. Her items of focus are business development and retention, and to resolve the Clallam Business Incubator status. AIA recommendations should continue to be implemented with continued community outreach. Councilmember Kidd would also like for Manager Myers to relay staff concerns to Council. Councilmember Kidd suggested using fifth Tuesdays for work sessions and /or public comment sessions. Manager Myers indicated that he would take these comments on goals and objectives and compile a list for Council consideration at their next regular meeting. 3. City Council Agendas and Council Meetings - 9:30 a.m. Councilmember Perry suggested that when the public comes to a Council meeting for one specific item that Council needs to avoid making them wait and consider moving that item up further in the agenda if possible. Councilmember Downie suggested moving more items to the Consent agenda if practical. Councilmember Kidd disagreed wanting more items discussed and considered openly by Council. She added that in the section "City Council Committee Reports" she would prefer to delete "Committee" and make it more general. Manager Myers asked if Council would like to have hard copies of PowerPoint presentations at the meeting. Consensus was for copies to be provided prior to the presentation so Council could take notes. Manager Myers presented the subject of action minutes as a way to reduce work load and increase efficiency. A sample was distributed for Council consideration. Consensus was to try for six months and monitor whether this increased public record requests. Mayor Di Guilio suggested using a signup sheet to see what issues people wish to speak to and use that as a way to run the meeting. He also suggested putting more items on consent agenda so as to save on Staff having to stay late into the evening. 4. City Council Rules of Procedure — 9:50 a.m. Discussion regarding the issue of excused versus unexcused absences. Councilmember Downie suggested that the City Clerk note at the meeting when a councilmember is absent for those present to determine if that absence is excused or not. Councilmember Kidd would prefer for second readings to remain as procedure and not to waive first readings unless it is an emergency. Consensus was to work through meetings and take a break only as needed, with the first break taken after 8:00 p.m. and to leave the public hearings at 7:00 p.m. Council will continue to move other agenda items up prior to 7:00 p.m. Consensus was to allow Councilmembers, who are not able to be physically present for meetings, to attend via conference call. CITY COUNCIL SPECIAL MEETING Council Retreat — January 9, 2010 5. City Advisory Boards and Committees - 10:08 a.m. Councilmember Nelson would appreciate the advisement of the senior councilmembers as to committee assignments. Mayor Di Guilio has been looking over assignments including Pool District Board and the Fire Consolidation Committees and trying not to overload any one councilmember and still place them where they are interested. Manager Myers asked about the Budget & Finance Committee and if there was still a need for it. Consensus was to continue the Budget & Finance Committee. Councilmember Kidd prefers for open discussion of the budget. Councilmember Kidd asked about assignment for ORCAA, and said that although she was the alternate she preferred for a Councilmember to represent the City. Councilmember Perry added that Mr. Munro has attended every ORCAA meeting and has provided complete reports to Council. Mayor Di Guilio will put together a list of recommendations for assignments. Council will approve committee assignments in open session at a regular Council meeting. Councilmember Kidd added that the Legislative Liaison should be either the Mayor or Deputy Mayor, not a councilmember, and not be separated from Mayor's or Deputy Mayor's duties. Manager Myers will verify how many Councilmembers are designated to serve on the Lodging Tax Advisory Committee. 6. City Communications /Citizen Conversations — 10:22 a.m. Councilmember Mania appreciated getting as much information on the website as possible. Councilmember Downie inquired as to ways to gather comments regarding a community vision and to get Council involved in that outreach. Councilmember Perry relayed the history of Community Conversations and the lack of public participation. Suggestion was made and discussed of including the Farmers' Market, Home Show, County Fair, or other venues. Manager Myers urged that the intent is to listen and not debate issues with the public. Consensus was to look into having a place at the Farmers' Market once a month. Manager Myers asked if Council wished to come to the City Manager Coffee events. Consensus was they are a very worthwhile event and should continue. Councilmember Nelson emphasized that the appearance of being approachable at Council meetings is very important and for Council to initiate conversation with the public prior to the meetings. Councilmember Downie encouraged Council to arrive a few minutes early to meetings to approach and welcome the public. Councilmember Kidd suggested having a Councilmember join Kent on KONP. Suggestion was to split the hour with a Councilmember attending for 30 minutes. 7. Intergovernmental Relations — 10:45 a.m. Suggestion made for a joint meeting with City of Sequim. Councilmember Perry suggested an interlocal meeting of all area City Councils, Port, County Commissioners, and Tribes, to have general discussion on economic development and to hold these meetings on an annual or semi- annual basis as a way to know what each organization is doing in a united forum. City could serve as host for the event with an outside facilitator. CITY COUNCIL SPECIAL MEETING Council Retreat — January 9, 2010 Manager Myers asked about relations with the County and if the process is working. Suggestions were for the Mayor and City Manager to meet with the County Administrator and Board Chair on a regular basis. Mayor Di Guilio would like more contact with the City of Victoria and how to further develop that relationship between these two cities. Discussion continued on how to further promote the Olympic National Park and expand the Park's global presence. 8. City Council Conferences and Tours — 11:00 a.m. Manager Myers noted upcoming National League of Cities conferences. Manager Myers and Mayor Di Guilio are set to go in March. AWC Conferences are other opportunities for Council participation and networking and to see where Port Angeles compares with how other cities are doing. Mayor Di Guilio expressed interest in touring the Bremerton area and areas with successful PDAs such as Tacoma, Olympia, and maybe Bellingham. Suggestion was also discussed to tour Port Angeles from a different perspective on possibly a quarterly basis. Director Cutler invited and encouraged all Councilmembers to tour City facilities to gain a different perspective. Tours could include the new Water Treatment Plant, Elwha River facility, Wastewater treatment plant, CSO sites, Transfer Station and Revetment Project, Morse Creek Hydroelectric Plant, Fine Arts Center, Senior Center, Lincoln and Shane Parks, Jessie Webster Park and tree issues, Rayonier site, and other facilities. Director West suggested touring some of our major employers, airport industrial park and other parts of the economic base of Port Angeles. Tours will be arranged after the seventh councilmember is seated. Tours will also include ride - alongs with the Police and Fire Departments. W. Bloor, D. McKeen, T. Gallagher, Y. Ziomkowski, joined the meeting at 11:20 am. Meeting recessed for a break. Meeting reconvened at 11:45 a.m. 9. Legal Issues Briefing — 11:45 a.m. / Working Lunch Attorney Bloor provided a very general and broad presentation on open public meetings act, quasi judicial matters, and ethics. See copy. 10. City Financial Outlook for 2010 - 1:10 p.m. Director Ziomkowski offered a presentation featuring a general financial overview of the City. See copy. She urged the Council to use the Budget document for comprehensive information regarding the City and went on to describe the Policy document as a financial plan, operations guide, and a communication device. She welcomed Council members to meet with her at any time with their questions. Discussion continued on the impacts of sales tax revenues and revenues gained by new and existing business in the EUGA and their effect on the budget. 11. Update on CSO Project — 2:10 p.m. Director Cutler presented an outline of the history, costs, and status of the CSO project See copy. Manager Myers suggested that the pilot study from 2000 -2001, be provided to new and existing councilmembers for information and reference purposes. CITY COUNCIL SPECIAL MEETING Council Retreat — January 9, 2010 12. Implementation Strategies for AIA Study — 2:40 p.m. Director West made a presentation regarding the AIA study progress. See copy. AIA Report was about place making and improvements to Port Angeles. Director West outlined programs in place, progress, timelines, and funding needs and sources including the use of grants, future projects for the Railroad and waterfront promenade areas and use of entry monuments at east and west entrances of the City. AIA provided a menu of choices for the City to select from while promoting public and private investment and involvement for the betterment of our community. Manager Myers added that there is a commitment to make this a very public process with extensive community outreach and involvement. Manager Myers also stressed the importance of the impact on the entire area of the city for all businesses. 13. Future Economic Development Strategies — 3:08 p.m. Manager Myers gave a presentation regarding economic development. See copy. City is doing a good job considering PenPly, ACTT, new Walmart, and Lower Elwha Tribal Heritage Center. Encouraged comment regarding Council's priorities in regards to economic development. Manager Myers offered to start the discussion with Council having conversation on specific ways to move forward and initial steps to take over the next 60 to 90 days. Councilmember Mania suggested that we need to search for our identity. Councilmember Kidd added that we need to have a community vision, as there is a lack of a perception what we are as a community. Councilmember Perry stated that there are still thoughts out in the community about mills and fishing and misconceptions about the value of tourism. He believes the waterfront promenade is a good step forward. There is also a need for incentives for new businesses to come into the area and that art and the underground should be used as a draw to the area. The downtown also needs some type of an anchor such as a Cabella's or Eddie Bauer. Councilmember Downie added that there has been a long -time opinion with some folks that say "we've never done that before" and that there is a need to encourage thinking outside of the box and creating a new paradigm is essential. Mayor Di Guilio added that there is a feeling that we don't know what we want to be as a community. Are we marine? Are we high -tech? We have limited resources so where do we focus those efforts? Councilmember Mania added that a cultural center on Rayonier site hits many areas such as cultural, educational, and research. He added that perhaps we are the place where past and future meet. Manager Myers asked what community assets need further promotion. Councilmember Mania contributed arts including music. Councilmember Perry suggested cultural assets and incorporating other area Peninsula area tribes. Councilmember Kidd added that this is a great place to raise a family with the pool, youth activities, sports, skateboard park, and Port Angeles is a great attraction for families. Councilmember Mania added that agriculture and culinary tourism need more attention. Mayor Di Guilio added that we have great public transportation system. Councilmember Downie added that our location is also an asset. CITY COUNCIL SPECIAL MEETING Council Retreat — January 9, 2010 Challenges offered included: Councilmember Mania — lack of community identity. Councilmember Downie — lack of self esteem. Councilmember Kidd — we need to have a clear description of what we are. Current concerns given: Councilmember Downie — hard to attract people/businesses when we don't know who we are. We need to brand ourselves and create an identity and market it heavily. Councilmember Nelson — challenges we face included the duplication of services and lack of collaborating efforts such as marketing efforts. Chief McKeen suggested determining what the vision should accomplish. Manager Myers added that there are currently over 13 different organizations working on economic development with no specific leadership. Manager Myers offered the suggestion of bringing in an independent consultant that could provide a similar outside and unbiased perspective on economic development structure as the AIA grant team did through their report. Councilmember Downie suggested focusing on what the groups could gain rather than what they could lose by looking at ways to work in a consolidated effort. Business retention — Mayor Di Guilio stated the need to determine what the barriers are for businesses in the downtown and if there is something the City can do, or are these issues beyond our control. Councilmember Perry offered that a survey is in process through PA Forward to that specific feedback from local businesses. Councilmember Nelson suggested seeing what kind of visioning we already have collected first. Manager Myers offered that a Transportation Benefit District is a funding opportunity for Council to consider and NICE Funding is a possibility for neighborhood infrastructure improvements that benefit economic development. Attorney Bloor added that economic development does not mean the same to every organization. The Port has much more ability to pursue certain economic development opportunities than the City just because of legal requirements. 14. Adjournment at 3:55 p.m. Meeting notes provided by Teresa Pierce. Dan Di Guilio, Mayor Janessa Hurd, City Clerk • • CITY OF PORT ANGELES CITY COUNCIL RETREAT OF ?ORT,IN January 9, 2010 Peninsula College • • • CITY OF PORTAN� L W A S H I N G T O N , • U.S.A. • CITY COUNCIL MEMO DATE: JANUARY 5, 2009 TO: CITY COUNCIL FROM: KENT MYERS, CITY MANAGER SUBJECT: CITY COUNCIL RETREAT The City Council retreat is scheduled this Saturday at 9:00 a.m. at Peninsula College in the PUB Conference Room. Attached to the agenda is a map showing the location of the meeting. Dress is casual and we should adjourn around 4:00 p.m. We will have coffee and a light breakfast available in the morning and lunch will be served around noon. Attached is an agenda for the meeting and information related to several of the items. I will serve as facilitator and certain Department Heads will be present to make presentations. It is important that each individual Councilmember actively participates in the discussion. My goal is to keep everyone involved and equally engaged — and to keep the meeting moving along due to the importance of getting all of these agenda items addressed at the retreat. The first item scheduled on the agenda is a discussion of the City Manager's Performance Goals for 2010. This is scheduled at the beginning of the meeting in order to get the Council started with a relaxed and open dialogue. Each of you should identify the primary accomplishments that you would like me to achieve during the coming year. Once each Councihnember has had an opportunity to identify your performance goals and objectives, I will compile a list and schedule for your formal approval at the next regular City Council meeting. Once approved, I will share with other City Departments so that they can assist in meeting these goals in the coming year. For your information, I have attached a copy of a report that was provided to the City Council last month on progress made in accomplishing my 2009 performance goals. You may want to use this information to continue certain goals which you feel are still priorities. 1 Page - 1 The next topic scheduled for discussion is the current format for the City Council agendas and the functioning of City Council meetings. The attached City Council Rules of Procedure (Sections 7 and 8) includes the current procedure for preparing the agendas and the order of business for Council meetings. Based upon your observations, you may have some suggestions on how City Council meetings can run smoother. What changes would you like to see to the order of the Agenda? How can City Council meetings run more efficiently? Are there any change's to the way we handle public comment during the Council meetings? Do you want to continue to have work sessions scheduled as part of the regular Council meetings or should work sessions be scheduled as special meetings? Can we move more non - controversial items to the consent agenda in order to better facilitate the meetings? The City Council Rules of Procedure includes other provisions which should be reviewed and discussed at the Retreat. As you review the attached Rules, please identify any procedure that you would like to discuss. One area that has recently been the subject of discussion is the fact that there is no procedure for handling situations where Councilmembers are not able to physically attend the meeting but want to participate via conference call. Should the Council allow this practice to continue? If so, do you want to establish certain guidelines or restrictions? Also, State law dictates that a councilmember forfeits his/her position if they have three consecutive unexcused absences, but the law does not define an excused absence. What is an excused absence? At Council meetings should the Council formally vote on whether or not each absence is excused? The next item on the agenda is the discussion of Boards, Committees & Commissions. As shown on the attached report, the City currently has nine different citizen advisory boards and committees. Although each of them has an important function, you might want to discuss changes to the committee structure prior to making any new appointments. Also, the City has certain Council Committees, such as the Real Estate and Finance Committees, which meet at certain times of the year. Please take a look at this list and identify any changes that you would like to see to these committees in 2010. Finally, the City Council appoints certain representatives to outside committees such as the Economic Development Council, Chamber of Commerce, and the Clallam Transit System Board. These positions will need to be filled within the next 30 days. Item #7 on the agenda is a discussion on ways that we can improve our communications from City Hall to the community. While we have made a lot of progress in our public outreach efforts during the past year, there have been several comments about the importance of continuing these efforts since we have an actively citizenry who want to get involved. More and more of our citizens are utilizing our website to access City information so you may wish to start this discussion with your views on the City's website. In addition, there have been several suggestions about starting some type of Community Conversations again during 2010 but with possibly a different format. I participated recently in an on -line training course on community conversations conducted by the International City Management Association (ICMA). A summary of this training is attached. This class focused on the importance of building accountability and trust with citizens and emphasized the importance of the initial invitation to the conversation. One of the critical functions of City government is building partnerships and relating effectively with other units of government at the national, state, regional, and county level. This Retreat Agenda 2 Page - 2 • • • • • • topic will include a discussion on how we can improve our intergovernmental relations to ensure that our interests are fully represented and considered. Since this is normally a shared function between City Council and City Staff, this might include some conversation on what role do you perceive for the Mayor, the City Council, and the City Staff in relating to various units of government. Should the Council rely on the Mayor to serve as the city voice for dealing with Congressional representatives? Should the City designate a legislative liaison to be the primary contact for dealing with federal and state officials? How can we improve our relations with County government? What do you feel about having one or more joint meetings in 2010 with the County Commissioners, Sequim City Council, Port Commissioners, or other governing boards? During 20101 would like to schedule at least one or two tours of other communities in Washington state that have realized major progress in terms of community development in the past 5 -10 years. I would like to get your views on such tours and when they might be convenient for the Council. In addition, the City Council normally participates in state and national conferences during the year and you might want to discuss your plans for 2010 in terms of conference travel. For example, every year in March, the National League of Cities Congressional Cities Conference is held in Washington, D.C. and this includes one -on -one meetings with our members of Congress. I normally attend this conference, however, due to the importance of making these contacts and meeting with our congressional delegation, I would suggest that at least one or two councilmembers attend the conference with me this year. During the lunch break, Bill Bloor will provide a briefing on several important issues. This will take about an hour and will include such topics as open public meetings, public records requests, and the appearance of fairness. Following lunch, Yvonne Ziomkowski will brief the Council on our financial outlook for 2010. This will include a status report on our 2009 year -end financial position as well as several important economic trends that we anticipate for 2010. She will also include a status report on our grant funding that was requested by one of the Councilmembers so that the Council can discuss how we might pursue additional grants during the coming year. The next topic scheduled at the retreat is an update by Glenn Cutler on the CSO project. We have made a lot of progress in the past year on the design of the CSO improvements. Glenn will report on this progress as well as plans for 2010 that we will need to follow in order to meet the completion schedule set by the State. One of our largest success stories from 2009 was the completion of the AIA report. As you know there is a lot of community support for this study and it is important that we continue our recent progress with implementation of study recommendations during the coming year. Nathan West will provide a progress report on what has been accomplished to date and our plans for 2010. This report and discussion will include possible sources for funding items included in the study such as the Waterfront Promenade. This might include use of the Economic Development Fund, Local Redevelopment Financing (LRF), Transportation Benefit Districts (TBD), or other sources. Last, but certainly not least, we have scheduled a discussion on economic development strategies for 3 Page - 3 the coming year. As you know, it is critical that the City be a leader in stimulating additional local economic activity in 2010. During the recent City council elections, economic development was a major topic that was mentioned throughout the campaigns. So how do we proceed in improving our local economy with the City taking a lead role? What areas of our economy do you believe we should focus on during 2010? In my opinion, we have several issues that we need to discuss and address if we are going to be successful in our economic development efforts. This includes the following: 1. We currently have some 13 entities that are involved in local economic development activities. We have to determine a way to better coordinate our efforts and make sure that we are all on the same page with regard to how we want to grow our local economy. 2. We need to create a common economic vision for the future of our community as there appears to be some diversity of opinion about certain types of economic development. Public involvement should be included in creating this vision and we might want to enlist an outside consultant or facilitator to assist in this process. 3. We need to agree on a strategy for using the City's Economic Development Fund to maximize the impact on our local economy. On a related note, we need to discuss ways we can sustain this fund for the future. (Note: A financial report and current policy for this fund is attached) 4. We need to focus more on business retention and look for ways we can improve the local business climate to make it easier for businesses to be more profitable in our community. This includes continuing our efforts to look at our codes and regulations to make sure that they do not present an impediment to business. We look forward to seeing you this Saturday at Peninsula College. Please let me know if you have any questions prior to the retreat. 4 Page - 4 • • • • • City of Port Angeles -City Council Retreat January 9, 2009 - 9:00 A.M. Peninsula College -Room J -47A PUB Conference Room 1. Call Meeting to Order 2. City Manager Goals and Objectives 3. City Council Agendas and Council Meetings 4. City Council Rules of Procedure 5. City Advisory Boards and Committees 6. City Communications /Citizen Conversations 7. Intergovernmental Relations 8. City Council Conferences and Tours 9. Lunch Break -Legal Issues Briefing 10. City Financial Outlook for 2010 11. Update on CSO Project 12. Implementation Strategies for AIA Study 13. Future Economic Development Strategies 14. Adjournment Page - 5 C) • = Footprint of new Maier Hall • • • • pORTANGELE.S W A S H I N G T O N , U.S.A. CITY MANAGER'S OFFICE MEMO DATE: JANUARY 9, 2010 TO: CITY COUNCIL FROM: KENT MYERS, CITY MANAGER SUBJECT: 2009 PERFORMANCE GOALS AND OBJECTIVES During my recent performance evaluation, the Council reviewed my progress in achieving 15 different performance goals and objectives that were set last April. I provided them with the following progress report on my efforts over the past year. 1. Keep City Council fully informed about City operations and upcoming major issues facing the City. During the past 12 months I believe that the Council has been fully informed about any challenges, problems, or controversies facing the City so that we have avoided surprises. This has been accomplished via e- mails, phone calls, individual meetings, weekly reports, and staff reports at the Council meetings. 2. Facilitate work sessions for discussion on major issues facing the community in the coming year. In 2009 we had a number of work sessions on planning, budgeting, legal, infrastructure, and other issues facing our community. This allowed City Staff to fully brief the Council on these issues and created opportunities for Council discussion. During these work sessions City Staff provided excellent presentations to summarize the issues for the Council's consideration. 3. Reorganize and right -size the City organization so that it becomes more efficient and effective in serving our customers and owners. In general, the City is a fairly lean organization due to the conservative approach to staffing we have taken over the past 5 -10 years. However, several accomplishments were made in this area in an effort to "fine tune" the organization. First of all, when positions became vacant during the past year, we delayed filling the position to create budget savings and to allow us to revise the job duties to provide a better fit for providing both external and internal services. Reorganization of duties and responsibilities has taken place in the 1T Division, Finance, Engineering, and the City Clerk's Office. For example, the City Clerk has historically handled certain fee collection duties. This function is in the process of changing with these collections being transferred to the Finance Deparnnent. 1 Page - 7 4. Maintain a cooperative and effective working relationship with City Council, City Staff, and the local media. This performance goal is difficult to measure but I believe that we have made progress in this area and I have a good working relationship with each of you, our City employees and the local media. When 1 have experienced a problem with any relationship in the past year, I did not hesitate to take immediate action to try to resolve the problem. For example, when I have experienced problems with the PDN in 2009, I met with John Brewer to try to work out these issues. 5. Establish more openness in City government by setting the example in terns of outreach in the community and improving the information flow from City Hall. I believe that I have realized a lot of progress in addressing this performance goal in the past year. We have expanded the information on the City's website and created numerous opportunities for citizen involvement and citizen input. I have tried to be available and accessible by getting out in the community and by creating an open door policy when I am in my office. 6. Work closely with the Harbor -Works Development Authority on the Rayonier project including the initiation of the CSO improvements. In 2009 we worked closely with the Harbor -Works Board and their Executive Director. Early in the year the Council adopted a position in support of Harbor - Works. Following this action, we have built an effective relationship with Harbor - Works, the Department of Ecology, and the Lower Elwha Klallam Tribe and have been able to work through a number of issues with regard to the Rayonier project. The due diligence assessment and marketing study is proceeding and the CSO improvements are continuing according to schedule. We have also met with Rayonier officials several times during the year to communicate our expectations for their involvement in this project. 7. Establish more opportunities for citizen participation in City government. During the past year citizens have become involved in City government particularly in the area of Harbor - Works, the AIA study, and the City's budget process. During the discussion of the dog park and the Lincoln Park tree citizens were very involved in offering their input, ideas, and concerns. I have tried to reach out and encourage this involvement in my City Manager Coffees and presentations at the Senior Center and other locations around the community. 8. Complete on -going projects such as The Gateway. Several major projects were completed in the past year including The Gateway, the 8 Street Bridges Replacement Project, and the Port Angeles Water Treatment Plant. In addition, several upcoming projects are on schedule including the CSO improvements and Harbor Master Plan. 2 Page - 8 • • • • • • 9. Work with the Farmers' Market to establish a long -term site in the downtown area. We have spent a lot of time and effort in the past year in working with the Fanners' Market to establish a long -term commitment for relocating to The Gateway. Due to some of the history with the Market this was a challenge but we have been able to work through the many issues and establish a positive working relationship. We continue to be committed to the Market and believe that it can realize a lot of growth and expansion at The Gateway over the next several years. 10. Develop a program to increase the City's involvement in sustainability issues possibly in cooperation with Clallam County. We have continued to serve as a leader in creating sustainability programs throughout our operations in such areas as recycling, energy conservation, and stormwater improvements. During the past year, we have also expanded our efforts to promote and communicate these programs. We have worked very closely with the Department of Ecology on various environmental initiatives during 2009. We have also devoted a lot of staff time to CSO improvements that, once completed, will have a major impact on water quality in this community. 11. Expand the tourism base in the community. This is one area that has a lot of room for expansion and improvement in the near future and I have gotten involved in helping to make some changes and enhancements. I have been an active participant in discussions on tourism at both our local Chamber as well as the Olympic Peninsula Tourism Commission. I have encouraged the Olympic National Park Service to get more involved in promoting their many attractions. I have worked to create more tourism opportunities related to the Victoria area. I helped to create some new Twilight promotional efforts and increased support for special events. 12. Work cooperatively with the Port Angeles Downtown Association, Port Authority, and other local organizations to develop additional community partnerships. As stated above, we have enjoyed a number of new partnerships in the past year. The most notable accomplishment in this area is the downtown painting project and we were able to work through a number of challenges to make sure that this project was a real success. We also developed a better working relationship with the Downtown Association and the new parking agreement was the culmination of a lot of negotiations during the past year. The new executive director for the Port and I have established a very effective working relationship and this will be a real benefit to our future economic development efforts. In the past year, I was also able to get the local public executive group meeting again and we will continue to work on partnerships in 2010. 3 Page - 9 13. Implement at least five of the recommendations included in the recent AIA study. During the AIA study project, I heard a number of comments from the public about their concerns that this was going to be another City plan or study that would end up on the shelf and never be implemented. Since the final report was released last summer, we have committed to educating the community about the study and immediately implementing the highest priority recommendations that were included in the study. We have established the new Signage and Facade Improvement programs and started to remove some of the sign clutter around the community. We completed the painting project downtown and made changes in our Capital Facility Plan that incorporates some of the capital projects that were recommended in the study. We have several AIA projects that are funded in 2010 included the signage and wayfinding improvements. 14. Improve overall appearance of the community including major entry points, the downtown area, and older buildings. We have made a lot of progress in addressing this goal as discussed above. The Gateway and the 8 Street Bridges Replacement projects have also helped to enhance the appearance of our community. The AIA study includes a number of visual enhancements that we will implement during 2010 and 2011. 15. Work closely with the City Council and City staff to make necessary budget reductions to maintain a positive fund balance. Overall I thought that the 2010 budget process went fairly smoothly. 1 believe that this was due to several factors including the major reductions that took place last year and additional reductions that occurred over the past 12 months in an effort to increase our fund balance. Also, our Finance Department does a very effective job in managing our budget and I was able to work closely with Yvonne and her staff. Positive fund balances will continue in all of our major funds as we start 2010. My first year in Port Angeles has been very enjoyable and I continue to be optimistic about our future potential. Although we are a relatively small community we have a lot of positive things that are taking place now or planned for the immediate future. It is critical to realize, however, that we cannot do everything on our own. Due to our financial limitations, we have to encourage more volunteer involvement, develop more cooperative ventures, maintain effective intergovernmental relations, and seek and encourage assistance and cooperation if we hope to continue the improvements noted in this report. It has been a pleasure to serve as your City Manager in the past year and I look forward to the corning years and the bright future that is ahead. 4 Page - 10 • • • • CITY OF 70RTANGELES W A S H I N G T O N , U.S.A. CITY COUNCIL RULES OF PROCEDURE NNW As of June, 2009 Section 1 Rules. These Rules shall govern the procedures followed by the City Council of Port Angeles, Washington, for the conduct of Council meetings and the maintenance of order, pursuant to RCW 35A.13.170. Section 2 Open Public Meetings Act. The Council shall comply with the provisions of the Open Public Meetings Act, Chapter 42.30 RCW, in the conduct of all meetings to which said Act is applicable. Section 3 Executive Sessions. The Council may discuss topics in executive session, which topics are specified in RCW 42.30.110 or relate to potential or pending litigation and are subject to attorney- client privilege. The City Attorney shall inform the Council whenever any proposed discussion in executive session is not legally allowed. No member of the City Council, employee of the City, or any other person present during executive session of the City Council shall disclose to any person the content or substance of any discussion or action which took place during said executive session. Section 4 Work Sessions. Special meetings designated as work sessions shall be advertised and conducted in the same manner as special meetings. Work sessions are for the purpose of in- depth review and discussion of specified issues. Final disposition shall not be taken at designated work sessions. Section 5 Ouorum. At all meetings of the Council a majority of the Councilmembers shall constitute a quorum for the transaction of business, but a less number may adjourn from time to time Page - 11 and may compel the attendance of absent members in such manner and under such penalties as may be prescribed by ordinance. The passage of any ordinance, grant or revocation of franchise or license, and any resolution for the payment of money shall require the affirmative vote of at least a majority of the whole membership of the Council. RCW 35A.12.120. Section 6 Chair of the Council. The Mayor shall be the Chair of the Council and shall preside at all Council meetings. A Mayor Pro Tempore or Deputy Mayor shall be selected biennially at the first meeting of a new Council, for a term to run concurrently with that of the Mayor. In the absence of the Mayor, the Mayor Pro Tempore shall preside. If neither the Mayor nor the Mayor Pro Tempore is present at a meeting, the presiding officer for that meeting shall be selected by a majority of the vote of those Councilmembers present, provided there is a quorum. The Chair of the Council may vote on all matters coming before the Council; however, the Chair of the Council shall not be required to vote except in the event of a tie. The Chair of the Council shall state all questions coming before the Council, provide opportunity for discussion from the floor, and announce the decision of the Council on all subjects. Procedural decisions shall be made by the Chair of the Council, who may request advice on such matters from the City Attorney. Procedural decisions made by the Chair of the Council may be overruled by a majority vote of the Council. Section 7 Agenda. The City Manager shall prepare the agenda of business for all Council meetings. Any Council member, department head, or citizen desiring to place a matter on the agenda shall notify the City Manager by twelve o'clock noon on the Wednesday preceding the Council meeting. Every agenda item must be supported by a written explanation informing the Council and staff of the issue, background and /or analysis, and recommendation and/or conclusion, unless the item is self - explanatory or unless the Mayor or City Manager has waived this requirement. All written materials for the agenda shall be delivered to the City Manager by twelve o'clock noon on Page - 12 2 • • • • the Friday preceding the Council meeting. Except for announcements, late items that the City Manager does not receive by the stated deadlines shall not be considered by the Council except upon a majority vote of the members present. Each agenda shall reference all ordinances to be considered by the City Council. No ordinances shall be acted upon unless notice of the preliminary agenda referencing such ordinance has been made available to the public in advance of Council meetings, as set forth below. Except in cases of emergency and of final approval of subdivisions, a proposed ordinance shall be presented to the Council at a regular meeting, and the Council may then act to adopt the ordinance at any subsequent regular meeting. Preliminary agendas for all meetings of the City Council shall be made available at least 24 hours prior to the time scheduled for such meetings. The preliminary agenda will be made available to the public in the following ways: 1. A copy is placed on the City website at www.citvofva.us 2. Several copies are placed on the front counter at City Hall. 3. A copy is posted on the bulletin board outside the Council Chambers. Section 8 Order of Business. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The items of business for regular Council meetings may include the following: 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Ceremonial Matters /Proclamations/Employee Recognition -3 Page - 13 5. Public Comment: This is an opportunity for members of the public to speak to the City Council. To allow time for the Council to complete its legislative agenda, comments should be limited to no more than 5 minutes per person and a total of 15 minutes for this comment period. At the discretion of the Mayor, these time periods may be lengthened or shortened. Following any public comment, the Mayor may allow time, limited to fine minutes, for response from City Council members and/or City staff. 6. City Council Committee Reports 7. Work Session 8. Late Items to be Placed on This or Future Agendas as determined by the City Manager or City Council Member. 9. Ordinances Not Requiring Public Hearings 10. Resolutions Not Requiring Public Hearings 1 1. Other Considerations 12. Public Hearings - Quasi - Judicial 13. Public Hearings - Other 14. Finance 15. Consent Agenda 16. Executive Session (as needed and determined by City Attorney) 17. Adjournment Section 9 Votincz. Each Councilmember shall vote on all questions put to the Council unless a conflict of interest or appearance of fairness problem requires a Councilmember to excuse him/herself. If a Councilmember does not vote when such vote is required, such member shall be determined to have voted "yes" at the time the vote is taken. 4 Page - 14 • • • Section 10 Decorum and Debate. When a measure is presented for consideration to the Council, the Chair of the Council shall recognize the appropriate individual to present the matter. When two or more members wish to speak, the Chair of the Council shall name the member who is to speak first. No member of the Council shall interrupt another while speaking except to make a point of order or privilege. No Councilmember shall be permitted to indulge in personalities, use language personally offensive, or use language tending to hold a member of the Council up to contempt. If a member is speaking or otherwise transgressing the Rules of the Council, the Chair of the Council shall or any Councilmember may call him/her to order, in which case he /she shall immediately be quiet unless permitted to explain. The Council shall, if appealed to, decide the case without debate. If the decision is in favor of the member called to order, he /she shall be at liberty to proceed, but not otherwise. A Councilmember transgressing this Rule shall be liable to censure or other such punishment as the Council may deem proper. Section 11 Questions of Parliamentary Procedure. Questions of parliamentary procedure not covered by these Rules shall be governed by Robert's Rules of Order, Newly Revised (1990 Edition). Section 12 Board and Commission Vacancies. The selection process for filling board and commission vacancies shall be as follows; provided, however, that in specific situations, the Council may by majority vote revise the process: A. The City Manager or his designee will solicit in the City's official newspaper volunteers who wish to serve on boards and commissions. B. The City Manager or his designee will mail application forms and specific information as to functions of the preferred board(s) or commission(s) to interested citizens. C. The City Manager or his designee will submit application forms, questionnaires, Page - 15 -5 and /or related information, to the designated interviewing body, as set forth on Exhibit "A ", for review and interviews. D. The designated interviewing body will interview candidates in open public session. Candidates who have not been interviewed will be excluded from attending the prior interviews. E. The designated interviewing body will forward a recommendation to the City Council as to the preferred candidate(s) for appointment to a board or commission. The City Council will make appointments by a majority vote. If the City Council is the designated interviewing body, the Council will select its preferred candidate in an open public meeting by roll call vote and the Mayor will make the appointment. F. The City Manager or his designee will provide written notice of appointment and confirmation, provide introduction to the chairperson of the respective board or commission, and provide introductory and educational information to the newly appointed member. G. In the event the number of members of any board or commission fall to the number required for a quorum plus one, the City Manager shall have the authority to make an interim appointment, subject to confirmation by the City Council. The term of an interim appointment shall be for (a) the remainder of the vacant term, (b) 6 months, or © until a permanent appointment is made by the City Council, whichever is less. Section 13 Notice of Public Hearings. Notice of all public hearings to be conducted by the City Council or any of its advisory boards and commissions shall be given either by publishing written notice at least once in the City's official newspaper prior to the date of the hearing, or by complying with any specific statutory requirements for such notice that may be applicable to the particular type of hearing involved. Section 14 Council Vacancies. The selection process for filling Council vacancies shall be as follows, provided, however, that the Council may by majority vote revise the process: Page - 16 -6 • • A. Notice of the vacancy and the procedure for filling the vacancy shall be published • • twice in the City's official newspaper. B. The Council will open a filing period of not less than 10 days for the vacancy and request each candidate to complete an application form or submit a letter of interest. C. The candidates will then be interviewed during a public Council meeting. D. The Council may deliberate on the qualifications of the candidates in a closed session and then vote on the appointment in an open meeting. E. In all other respects, the procedure for filling a Council vacancy shall be as provided in State law. Established /Amended by Resolution Nos.: 21 -84, 13 -86, 9 -87, 2 -88, 3 -88, 19-88,37-91, 5 -92, 2 -95, 5-95,4-96, 20- 96,11 -97, 2 -98, 6 -98, 15 -99, 17 -04, 2 -05, 10 -05, 2 -06, 11 -06, 12 -06, 8 -07, 3 -08, and 10 -09. G: \Group \Clerk \Council -Rules of Proc 0609 Page - 17 CITY COUNCIL Dan Di Guilio Patrick Downie Cherie Kidd Max Mania Brooke Nelson Don Perry ONE VACANCY BOARD OF ADJUSTMENT Nason Beckett Craig Johnson Bill Rinehart John Teichert Chuck Whidden CIVIL SERVICE COMMISSION Patsy Feeley Daniel Sterling Glenn Wiggins PORTANGELES WASHINGTON, U.S.A. CONSTRUCTION CODE BOARD OF APPEALS Greg Bondy Doc Reiss Jerry Schwagler Two Vacancies Boards, Commissions & Committees January 1, 2010 Currently serving on City Council, City Boards, Commissions, and Committees LODGING TAX ADVISORY COMMITTEE Votinz Members: Joseph Mollerus Scott Nagel Edna Petersen NEEDS COUNCIL REP. Greg Woodland Non - Voting Members: Rian Anderson Pat Davis CITIZEN AT LARGE VACANT Terry Roth PARKS, RECREATION & BEAUTIFICATION COMMISSION Jack Harmon Jean Hordyk Penny Pittis David Shargel Fowler Stratton Eleanor Tschimperle Chuck Whidden 2 Vacancies - Student Reps. PLANNING COMMISSION Werner Beier Tim Boyle Mike Caudill John Mathews Michael "Doc" Reiss John Smith Carla Sue PORT ANGELES FORWARD COMMITTEE Mike Chapman Michael Edwards Paul "Buck" Gieseke COUNCIL REP - Cherie Kidd David Miller Doug Nass Willie Nelson COUNCIL REP - Don Perry Terry Roth Linda Rotmark George Schoenfeldt Terry Smithton Terry Weed Sonya Tetnowski PUBLIC SAFETY ADVISORY BOARD Alan Barnard Buddy Bear Maria Pena Nick Simpson Kathy Steinkamp Daniel Sterling Dennis Wilcox Edward Zoble 3 Vacancies (1 for EMS Agency Rep.) UTILITY ADVISORY COMMITTEE Elizabeth Butler Orville Campbell Dan Di Guilio Dean Reed NEED 2 COUNCIL REPS Revised 1/2010 Page - 18 • • • • • * Indicates alternate needed Budget & Finance (meets as needed) Human Services (scheduled by United Way) Lodging Tax Advisory Committee (meets as needed) Leeal & Administration Real Estate Committee (meets itii onday between 1 & 3 esday of each mo., 4:00 p.m., ity Hall) Public Works & Utilities Utility Advisory Committee (meets 2 " Tuesday of each mo., 3:00 p.m., City Hall) Clallam Transit (meets 3r Monday of each mo., 1:30 p.m., rotating locations) No. of Council M embers 3* 1* 2 3 3* 2* City of Port Angeles City Council Committee Assignments for 2010 -2011 As of January 1, 2010 VACANT Dan Cherie Don Brooke Patrick Max Di Kidd Perry Nelson Downie Mania Guilio X X X X X Alt. Solid Waste Advisory Committee (meets 3 Thursday of odd months, 3:00 p.m., P.A. 1* Alt. Senior Center) X Alt. Peninsula Regional Transportation Planning (meets 2" Friday every other month, 10:00 a.m., location varies) 1* Alt. X Page - 19 * Indicates alternate needed Ad Hoc: City / Clallam County PUD (meets as needed) 1 Health & Safety (meets as needed) Law & Justice (meets as needed) Community & Economic Development (meets as needed) 3 Port Angeles Forward (meets 2 id Thursday of each mo., 7:30 a.m., City Hall) 3 1* 2* Economic Development Council (meets 3 Thursday of each mo., 10:00 a.m., Peninsula College A- 12) 1 Olympic Region Clean Air (meets 2 °d Wednesday of each mo., 10:00 a.m., Olympia) 1 Marine Life Center Board (meetings to be determined) 1 Parks & Facilities Park Facilities (meets 2" Wednesday of each mo., 4:30 p.m., Vern Burton meeting room) City of Port Angeles City Council Committee Assignments for 2010 -2011 As of January 1, 2010 No. of Dan Cherie Don Brooke Patrick Max Council VACANT Di Kidd Perry Nelson Downie Mania Members Guilio 3* X I Alt. I X Alt. X X Appointed Grant Munro I I I I I I I -2- Alt. X Page - 20 • • • • • * Indicates alternate needed Communications & Policy Disability Board (meets 3` Wednesday of each mo., 3:00 p.m., at County) Mayor Firemen's Pension Board (meets once per year) Mayor Volunteer Firemen's Pension Mayor + 1 Board (meets once per year) il auridsen Trust (meets 4 hursday of each mo., 2:00 Mayor p.m.) Peninsula Development Assn. (meets twice a year) 1* Mayors Meeting I Mayor Other Apencv Assienments: Multi- Cultural Alliance (meets as determined by group) Legislative Liaison City of Port Angeles City Council Committee Assignments for 2010 -2011 As of January 1, 2010 No. of Dan Cherie Don Brooke Patrick Max Council VACANT Di Kidd Perry Nelson Downie Mania Members Guilio Alt. X Chamber of Commerce (meets 2 Friday of each mo., 12:00 Noon, location varies) 1* X 1* Alt. I I 1 1 1 1 I I 1 I 1 1 1 1 1 I -3- Page - 21 Summary of the Six Conversations That Build Accountability and Commitment These six conversations are founded on a sincere belief that all change and transformation is linguistic in nature. That focusing on people's potential, and their best nature is much better than solving problems of the past or people's deficits. And that by having these conversations, we can create a community that helps organizations succeed beyond average performance. The Invitation Conversation Transformation occurs through choice, not mandate. Invitation is the call to create an altemative future. How we are called together to experience our sense of freedom in any gathering? What types of invitations allow people to grant themselves unlimited permission to participate and own the relationships, tasks, and process that lead to success? How can we craft compelling messages that challenge all invited participants to stay? The invitation must contain a hurdle or demand if accepted. It is a challenge to engage? Most leadership initiatives or training are about how we get or "enroll" people to do tasks and feel good about doing things they may not want to do. Our belief is that we should have people "self- enroll" in order to experience their freedom of choice and commitment. How we invite people to join us in our work and mission is critical to how far they own and commit to the ultimate success of that mission. Change is a self inflicted wound. People need to "self- enroll" in order to experience their freedom of choice and commitment. The leadership task is to name the debate, issue the invitation, and invest in those who choose to show up. Those who accept the call will bring the next circle of people into the conversation. The Possibility Conversation is one that focuses on what we want our future to be as opposed to problem solving the past. This is based on an understanding that living systems are really propelled to the force of the future. The possibility conversation frees people to innovate, challenge the status quo, and create new futures that make a difference. In new work environments this conversation has the ability for breaking new ground and in understanding the prevailing culture. Problem solving and negotiation of interests makes tomorrow only a little different from yesterday. Possibility is a break from the past and opens space for a future we had only dreamed of. Declaring a possibility wholeheartedly is the transformation. In new work environments this conversation has the ability for breaking new ground and in understanding the prevailing culture. It confronts people with the freedom of choice and creation, change and commitment. ] The leadership task is to postpone problem solving and stay focused on possibility until it is spoken with resonance and passion. . The Ownershio Conversation is one that focuses on whose organization or task is this ?. The conversation begins with the question, "how have I contributed to creating the current reality ?" Confusion, blame and waiting for someone else to change are a defense against ownership and personal power. The conversation explores the sense of ownership that the group can create together by having conversations that really matter individually and collectively. The enemy of ownership is innocence and indifference. The future is denied with the response, "it doesn't matter to me— whatever you want to do is fine ?" This is always a lie and just a polite way of avoiding a difficult conversation around ownership. We believe the ownership conversation is a • Page - 22 • critical cornerstone for the success of any strategy implementation. What is it that matters most for people to individually and collectively own the strategic direction in an organization? And what factors help ownership become real and fundamental in the full cycle of human experience, business development, or strategy implementation? People best create that which they own and co- creation is the bedrock of accountability. It is the belief that I am cause. The leadership task is to confront people with their freedom. The Dissent Conversation is allowing people the space to say "no ". If we cannot say "no" then our "yes" has no meaning. People have a chance to express their doubts and reservations, as a way of clarifying their roles, needs, and yearnings within the vision and mission being presented. Genuine commitment begins with doubt, and "no" is a symbolic expression of people finding their space and role in the strategy. It is when we fully understand what people do not want that we can fully design what they want. Refusal is the foundation for commitment. The leadership task is to surface doubts and dissent without having an answer to every question. The Commitment Conversation is about individuals making promises to their peers about their contribution to the success of the whole organization. It is centered in two questions: What promise am I willing to make to this enterprise? And, what is the price I am willing to pay for the success of the whole effort? It is a promise for the sake of a larger purpose, not for the sake of personal return. The leadership task is to reject lip service and demand either authentic commitment or ask people to say no and pass. We need the commitment of much fewer people than we thought to create the future we have in mind. The Sixth Conversation is Around Gifts. What are the gifts and assets we bring to the enterprise? Rather than focus on our deficiencies and weaknesses, which will most likely not go away, let us build on the gifts we bring and capitalize on those. Instead of problematizing people and work, the conversation is around searching for the mystery that brings the highest achievement and success in work organizations. Confront people with their essential core that has the potential to make the difference and change lives for good. The leadership task is to bring the gifts of those on the margin into the center. http / /www.designedlearning.com Page - 23 CITY OF PORT ANGELES ECONOMIC DEVELOPMENT FUND OCTOBER 2009 I PURPOSE AND INTENT This document is intended to clarify the purpose and policy relating to expenditure and revenue of the City of Port Angeles Economic Development Fund II AUTHORITY FOR ECONOMIC DEVELOPMENT Revised Code of Washington In 1985 the Revised Code of Washington (RCW 35.21.703) granted authority for cities to engage in economic development programs. The section prohibits cities from entering into contracts with for - profit corporations. It further gives authority for cities to contract with private nonprofit corporations for the purpose of engaging in economic development programs. All such transactions must be constitutional. It is important to note that there are other sections of the Revised Code of Washington that limit the City's ability relative to this fund. III CITY'S EXERCISE OF ECONOMIC DEVELOPMENT AUTHORITY Background/History Since the inception of the Economic Development Fund a number of documents and regulations have established policy related to the use of the fund. Such guiding documents include: the Port Angeles Municipal Code, the City of Port Angeles Budget and the August 14, 2006 Settlement Agreement. Details are noted below. Port Angeles Municipal Code (PAMC) In 1996, the City Council established the Economic Development and Port Angeles Works Funds. As established in the City Treasury, this includes funds for the fiscal administration and accounting of revenue appropriated by the City for economic development activities. It also includes revenue received by the City for the implementation of the "Port Angeles Works" economic development program. This program was created for the purpose of creating jobs, employment opportunities, and diversifying the Port Angeles economy. In 1999 this fund was redefined as the Economic Development Fund and the Port Angeles Works Fund was formally closed in 2006. See section 3.15.015 of the PAMC. City Budget This purpose has been confirmed annually. Since 2000, each Council adopted budget has specifically identified the purpose of the fund to promote and enhance economic development and employment opportunities. The 2009 adopted Budget states: The purpose of the Economic Development Fund is to administer the City's economic development programs to promote and enhance economic growth and 1 Page - 24 • • • employment opportunities in the City of Port Angeles and the North Olympic Peninsula region. • • IV SOURCE OF FUNDS AND LIMITATIONS Source of Funds The fund itself should be considered to have three separate accounts based on revenue. The components include: general revenue, settlement funding, and community enhancement funds. Expenditure of the economic development fund must respect the source of revenue being allocated towards a specific economic development purpose. August 14, 2006 Settlement Agreement In 2006 Council entered a settlement agreement with the State of Washington, Lower Elwha Klallam Tribe and Port of Port Angeles. The primary balance of the Economic Development Fund is from this settlement agreement. In mid -2007, the City received a $7.5 million settlement payment from the state to be used for economic development by the City. The agreement states: The State shall pay to the City the sum of Seven Million Five Hundred Thousand Dollars ($7,500,000.00) to be applied by the City in its discretion, for the f uiding of public capital projects intended to enhance economic development, such as but not limited to those projects identified in Exhibit 1. Settlement funds provided through the one time Tse -Whit -Zen settlement agreement are preserved for and administered only for one time economic development opportunities. These opportunities shall be dedicated to projects resulting in significant return on investment to the City of Port Angeles. Documentation of the monetary return on investment to Port Angeles should be provided prior to consideration of expenditure. Additionally, measurable impacts to the local community including the number of jobs created should also be documented. Staff strongly cautions expenditures that do not directly result in the creation of new businesses and the diversification of our local economy. This is a one -time non - renewable revenue source. Community Enhancement In 2009, approximately $115,000 was transferred to the Economic Development fund for the purpose of creating a facade and signage improvement program. These funds must continue to be utilized for the administration of that program. This is a one time revenue source until other renewable sources of revenue are identified. See Exhibit 2. General Revenue The balance of the Fund consists of transfers from the general fund and various utilities plus transfer of the remainder of the former Port Angeles Works fund. Following initial creation of the Fund, annual contributions from the general fund and utilities funds have continued at $115,000 to $150,000 annually. Additionally, interest generated from the Economic Development fund is re- invested and should be considered general revenue. Money in this category should be utilized for a purpose that directly benefits economic 2 Page - 25 growth. Benefit to utility growth and tax base growth should be considered in addition to employment. Such purposes include contracts with non - profit organizations that provide economic development services, and internal city operations of the Community and Economic Development Department. Contracts for services must directly benefit the City of Port Angeles. Since this is a one -time non - renewable revenue source, this funding should not be used for any other purposes other than actual creation of new businesses and the development of the local economy that can be clearly demonstrated and documented.. V CURRENT DESCRIPTION OF THE ECONOMIC DEVELOPMENT FUND Fund Components The Economic Development Fund is comprised of 3 separate balances. I. Settlement Agreement This component is used only for 1) public, 2) Capital Projects, 3) that enhance the City's economic development. Once utilized these funds are depleted and will not be replenished. II. Facade Improvement Program This component of the fund originated from Community Development Block Grant Income. These funds can only be spent only for the Facade Improvement grant program. III. Funds from other sources This component is used for economic development purposes including contract services and internal city operations of the Community and Economic Development Department. VI SUMMARY Economic Development Fund Policy and Future Direction Management of the City's Economic Development Fund should adhere to two primary goals 1.) To create jobs and diversify the local economy and 2) To provide long term sustainability to ensure the City is capable of capitalizing on future economic development opportunities. All expenditures should be justified based on a documented return on investment to the City's economic base. 3 Page - 26 • • • • Economic Development Fund Summary of Revenues and Expenditures Fund Department j Economic Development N v Revenues Intergovernmental Interest on Investments Judgments and Settlements Parking Revenue Transfer from General Fund Transfer from Electric Ufihy Rural Econ. Dev. Fund Transfer from Electric Fund Transfer from Water Fund Transfer from Wastewater Fund Transfer from Housing Rehabilitation Fund' Transfer from Community Development Grants Fund 2 Miscellaneous Revenue Total Revenues Ending Fund Balance Community & Economic Devolooment • Account Number 103 -1511 75,000 - 50,000 20,482 - - - 823 2,118 9,376 245,142 362.446 262,500 167,818 128.114 - - 7,500,000 - - - 9,423 - - - - 40,585 35,000 235,000 60,000 60,000 - - 25,000 25,000 25,000 25,000 25,000 '25,000 81,254 60,000 60,000 60,000 60,000 60,000 60,000 40,000 48,702 30,000 30,000 30,000 30,000 30,000 30,000 30,000 48,702 30,000 30,000 30,000 30,000 30,000 30,000 30500 - - - - - - 115,992 36,698 - 127 - - - - - 304,489 157,245 389.376 1 8,000,142. 587,928 407,500. 465,508 1 253,114 Expenditures by Object Personnel 152,925 61,102 3,322 8,796 59580 68,696 67,700 74,278 Supplies 374 2,786 58 559 462 700 1,200 1,950 Charges For Services Clallam Business Incubator (CBI) - - 71,000 65,000 85,250 85,000 85,000 45,000 Economic Development Council (EDC) 110,827 40,000 37,000 20,000 15,000 15.000 15,000 15,000 PADA Main Street Program 17,500 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Peninsula College - 5,000 - - - - - Rayonier Property Development & Harbor Plannir 28,810 40,465 99,466 500,000 600,000 500,000 Economic Development Project Support - 7,325 - 40.000 40,000 40,000 Facade Improvement Program • - - - - - - 33,000 82,000 Other Charges for Services 3 1,465 13,693 21,582 16,608 5,096 8,825 8,459 9,110 Transfer to CIP Fund ' - - 2,000,000 - - 75,000 Total Expenditures 283,091 137,581 184,770 176.753 2,284,854 738,221 870,359 1 862,338 Net Increase (Decrease) In Fund Balance 21.398 19,664 204,606 7,823,389 (1,696,926) (330,721) (404,851) (609,224) Beginning Fund Balance 23,872 45,270 84.934 269,540 8,092,929 6,396.002 6,398,002 5,991,151 Ending Cash Balance 83,363 98,358 308,740 592,929 1546,002 1,215,281 1,558,159 1,030,935 Reserved Cash Balance-Settlement Proceeds - - - 7,500,000 5,350,000 4,850,000 4,350,000 4,350,000 Reserved Cash Balance- Facade Improvements' - - - - 82,992 992 45,270 64.934 269.540 8.092.929 6.398.002 6.065.281 5.991.151 5,381.927 In 2009, $115,992 was transferred from the Housing Rehabilitation Fund for facade Improvements which am budgeted in 2009 Amended and 2010. In 2009, 538,898 was transterted from the Community Development Grants Fund in order to close that fund. Other charges for services include: Tim Smith consulting, office remodel, moving expenses, UGA annexation fling fee, legal services, and border pot. Transfers to CIP were for the Gateway project in 2008, and the Waterfront Promenade project In 2010. PM G:tGRDUP1#CC718udgetlOOSPECULL REVENUE FUNDStEconomie Development tostoryFund 103 Econ Dev (Q co Electric Utility Rural Economic Development Revolving Fund Summary of Revenues and Expenditures Fund Department 1Eiectric Utility Rural Economic Development Revolving Revenues Interest on Investments Transfer from Electric Fund Total Revenues Community & Economic Development Account Number 150 -1580 2005 2006: 2007 (` .2008 J� � u` . 2010 Actual Actual: ;; Actual f _ . ., Actual, Budget . ,_ Amended Budget 3,106 3,970 7,171 9,724 11,544 6,000 6,335 4,836 50,000 50,000 50,000 50,000 50,000 50.000 50.000 50,000 53,106 I 53,970 1 57,171 1 59.724 I 61,544 I 56,000 1 56,335 I 54,836 Expenditures by Object Professional Services 65,206 18,000 10,000 10,000 25,000 , 25,000 25,000 Advertising 500 1,087 Transfer to CIP Fund (WUGA) - 55,000 - - - - - _ Transfer to Economic Develop. Fund - - 25.000 25,000 25.000 25.000 25.000 25.000 Total Expenditures 65,706 I 74,087 I 35,000 1 35,000 I 25,000 I 50,000 50,000 I 50,000 Net Increase (Decrease) in Fund Balance Beginning Fund Balance Ending Fund Balance (12,600) (20,117) 22,171 24,724 36,545 6,000 6,335 4,836 176,705 164,105 143,988 166,159 190,883 227,428 227,428 233,763 164,105 143,988 166.159 190.883 227,428 233,428 233,763 238,599 Professional Services Include: ' Peninsula College Excellence Program 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Economic Development Projects - - - - 15,000 15,000 15,000 • Cieilam County EDC 30,171 - - - _ • Dungeness Crab Festival 2,500 - - * Olympic Lions Foundation 500 - ' Chambers Group 3,000 - - * Cla Ilam Business Incubator - 8,000 _ ' DenRee Productions 19,035 - (Chamber guest guide, Business Report) Total Professional Services 65,206 18.000 10,000 10,000 0 25.000 25,000 25,000 • • . • City Fundamentals All About Council Meetings A Conversation about Basic Laws and Principles (Part 1) The Open Public Meetings Act • The OPMA requires that all meetings of the City Council be open and accessible to the public. • Limited exceptions. • Applies to some committee and commission meetings The Open Public Meetings Act • "Action" means • receipt of public testimony, ■ deliberations, • discussions, • considerations, • reviews, ■ evaluations, and . final actions. • "Final action" means a collective decision upon a motion, proposal, resolution, order, or ordinance. • Open Public Meetings Act Fundamental rules for Council Meetings • Quasi - Judicial Hearings Special rules for Council meetings • Ethics When you cannot participate in a Council meeting The Open Public Meetings Act • Broad definition of "Meeting" • A "meeting" includes any situation in which • a majority of the council • Takes "action." The Open Public Meetings Act • A City Council is conducting a meeting whenever a majority of its members deal in any way with city business. • This includes simply discussing some matter having to do with City business. 1 1 The Open Public Meetings The Open Public Meetings Act Act • If 4 or more take "action" on City Business, it is a meeting • If that meeting occurs without providing an opportunity for public to attend - violation of the law. The Open Public Meetings Act CAUTION: E -MAIL MEETINGS SERIAL MEETINGS The Open Public Meetings Act • Limited exceptions. • Social gatherings are expressly excepted - unless the body's business is discussed at the gatherings. • Some meetings are not "meetings." • E.g., collective bargaining • It is not necessary that the members be in the physical presence of each other for there to be a meeting. • Discussion of City business by telephone or e-mail may be a Meeting. The Open Public Meetings Act Violation /Remedies: • Any Council action done in violation of the Act is invalid. • Civil penalties. • The City is liable for all costs including reasonable attorneys' fees. Conduct of Meetings 2 1 The Open Public Meetings The Open Public Meetings Act Act • All persons must be permitted to attend, except unruly persons. • Attendance may not be conditioned upon registration or similar requirements. The Open Public Meetings Act • Council may adopt its own rules of procedure • We have some rules • Otherwise, generally follow Roberts Rule of Order Conduct of Meetings • First reading of ordinances - Policy - Not required by law, but many cities do In cases of disorderly conduct: Specific actions available The Open Public Meetings Act • City Ordinance • Regular meetings shall be held on the first and third Tuesdays of each month, • Begin at six p.m. • Public hearings will be scheduled to begin at seven p.m. or as soon thereafter as possible. • Regular meetings shall conclude at ten p.m.; • provided, that the City Council may, upon motion, continue the meeting past that hour upon items on the agenda not considered prior to ten p.m. Conduct of Meetings Vacancy for Nonattendance A council position becomes vacant if the council- member fails to attend three consecutive regular meetings without being excused by the council. RCW 35A.12.060 3 Conduct of Meetings • Regular Meetings And • Special Meetings Regular Meetings • No notice required for a regular meeting. • City must have a procedure for notifying the public of all meeting agendas. ■ But not limited by published agenda. Special Meetings • Any meeting other than "regular." • May be called by the Mayor or a majority of the members. • Except in emergencies, must be advance written notice of Special Meetings. Regular Meetings • One held according to a schedule fixed by ordinance. • There is no limitation as to the business that may be • transacted at a "regular" meeting. Adjournments /Continuances • Any meeting may be adjourned or continued to a specified time and place. • An adjourned regular meeting continues to be a regular meeting for all purposes. Special Meetings The notice of a special meeting: • Must specify the time and place • The business to be transacted. • Action is limited to agenda • Must be delivered 24 hours in advance. 4 Executive Sessions Definition (as commonly understood): • That portion of a meeting from which the public may be excluded. ■ Information learned in executive session is confidential. Conduct of Executive Sessions • In Executive session, cannot vote and cannot make a collective decision. • Adoption of an ordinance, resolution, motion, regulation, order or directive must be done in open meeting. Questions on this Part? Conduct of Executive Sessions • An executive session must be part of a regular or special meeting. • The presiding officer must announce - the purpose of the executive session and - the time when the executive session will conclude. The time may be extended but not shortened. Conduct of Executive Sessions • Executive session only for purposes authorized by statute • 7 typical reasons to authorize executive session • Authority is narrow and limited Quasi Judicial Hearings The Appearance of Fairness Doctrine 5 Different Functions within A Council Meeting ■ Legislative - Deliberation - Policy - making ■ Hearing - Fact - finding What is a Quasi - Judicial Hearing? Quasi judicial hearings determine the legal rights of specific parties. • Land Use. • Permitting. • Some other hearings. When the Doctrine Applies The Appearance of Fairness Doctrine applies during the pendency of a quasi - judicial proceeding. Different Kinds of Hearings • Hearing • Legislative a Quasi Judicial - Appearance of Fairness Doctrine What is Not a Quasi - Judicial Hearing? Distinguish "legislative actions." ■ Amending comprehensive plans • Area -wide zoning ordinances. ■ Actions that affect the City as a whole, not just a single property. The Basic Rule Such hearings should be governed by the same strict fairness rules that apply to cases in court. 6 The Basic Rule The rule requires that such hearings be fair AND appear fair. What if ... • If a violation is proved, the decision is invalidated. • A new hearing must be conducted without the disqualified decision- maker. • The practical result is delay, expense, and duplicative work for all the parties. You Must Not: • Outside the hearing, communicate with proponents or opponents about a pending proceeding. • Have a personal interest in the outcome. • Have bias toward a pending application. Why? • This is the record —up to and including the Supreme Court • Your decisions should withstand appeal. The Rules Governing Council Members During the pendency of a quasi - judicial proceeding, no member of a decision- making body may: You Must Not: • Pre -judge a pending application. • Act from hostility or favoritism. • Decide based on facts or opinions outside the record. 7 Appearance of Fairness Doctrine Guidelines for Avoiding Violations • Become familiar with fair - hearing procedures. • Be sensitive to personal and employment situations that might form the basis for a challenge. Appearance of Fairness Doctrine Guidelines for Avoiding Fairness Violations • Make decisions solely on the basis of matters of record. • Avoid ex parte contacts. Quasi Judicial Hearings: How to Script includes a series of questions • Will you be fair and impartial • Will you appear to be fair and impartial Appearance of Fairness Doctrine Guidelines for Avoiding Violations • Preserve an atmosphere of fairness and impartiality. • Evaluate whether a financial interest or bias would limit ability to function as an impartial decision- maker. Quasi Judicial Hearings: How to Mayor opens the hearing • States the purpose of the hearing • States the ground rules for the hearing • Script for qualifying the Council Quasi Judicial Hearings- How to Have you communicated outside the hearing with opponents or proponents on the issue to be heard? - If so, you must place the substance of any such communication on the record. 8 Quasi Judicial Hearings - Fairness • Any Council member disqualified based on Appearance of Fairness grounds must leave the hearing room and not participate further. • The remaining Council members are "qualified" to participate in the hearing. Quasi Judicial Hearings At the conclusion of arguments: • Mayor closes the hearing, and Council deliberates. Quasi Judicial Hearings Deliberations by Council (cont.) • It is stron4lr recommended that deliberations occur in open session. • The Open Public Meetings Act does, however, exempt quasi - judicial matters. Quasi Judicial Hearings The hearing proceeds: • City staff presents its report. • Proponents and Opponents are allowed equal time to present an argument. • Equal time is allowed for rebuttal. Quasi Judicial Hearings Deliberations by Council • Can occur following the hearing, or at some other time. • If necessary, postpone deliberations until members have had time to review the record. • Be careful not to delay deliberations and eventual decision beyond the statutory limit. Quasi Judicial Hearings Council must: • Decide in open session. • Prepare written findings of fact and conclusions of law in support of their decision. • Approve the findings and conclusions in open session. 9 In the End: Quasi Judicial Hearings • The Decision of the Council must be based on evidence included in the record; and • Must be consistent with the legal standards that apply. Ethics /Conflicts of Interest Ethics - General Principles Council members are elected to set law and policy as representatives of all citizens of the city. Questions about this Part? Ethics - General Principles "Ethics ... are the foundation on which the structure of government rests. Officials ... hold a public trust that obligates them to honesty and integrity .... Paramount is the principle that public office ... may not be used for personal gain or private advantage. "The citizens expect all ... officials ... to perform their public responsibilities in accordance with the highest ethical and moral standards and to conduct the business of the state only in a manner that advances the public's interest." Washington Supreme Ct., 2002 Ethics - General Principles Council members are under an obligation to: • Support best interests of the public, • Weigh competing interests, and • Consider impacts of actions across the entire community. 10 Ethics - General Principles Council members must: • Hear all sides of an issue. • Study all measures brought before them. • Vote on all measures brought before them. • Publicly explain their vote. Ethics - General Principles • ... have no other view than to promote the public good, .... George Washington • Do what is best for your whole community... F. Charles - Dec 15, 2009, City Council meeting Ethics - Prohibited Acts • These actions are prohibited. • When faced with these situations, a city council member must choose: • Resign OR • Forgo the prohibited act and remain on the council. Ethics - General Principles ■ Individual voters are not obligated to do any of those things. Ethics The consequences of a conflict of interest can be serious. • A contract is voided • An officer violating its provisions is liable for a $500 penalty • Forfeiture of office. • Possible criminal penalties may be derived from other statutes. It is your responsibility to recognize a potential conflict and act accordingly. Ethics - Prohibited Acts A member who has a forbidden interest may not escape liability By abstaining. 11 Ethics - Prohibited Acts • A beneficial interest in a contract, • Certain prohibited acts, • Dual offices, and • Incompatible offices. Ethics - Prohibited Acts • "Contract" includes employment, sales, purchases, leases, and other financial transactions of a contractual nature. Ethics — Prohibited Acts No municipal officer may use his or her position to secure special privileges for himself, herself or others. Ethics - Prohibited Acts Contracts: • No municipal officer shall be beneficially interested, directly or indirectly, in any contract made under the supervision of such officer • No municipal officer shall accept, directly or indirectly, any compensation, gratuity or reward in connection with such contract • Some exceptions Ethics - Prohibited Acts With some exceptions, municipal officials are forbidden from having personal financial interests in City employment. Ethics — Prohibited Acts No municipal officer may, directly or indirectly, give or receive any compensation, gift, gratuity, or reward from any source, for a matter connected with the officer's services 12 Ethics - Prohibited Acts No municipal officer may accept employment or engage in business that might require him or her to disclose confidential information. Ethics — Prohibited Acts Dual Office - Holding • It is unlawful for a public officer to hold another public office unless clearly authorized by statute to do so. - Same organization Ethics - Situations that Impose Limitations • Financial Interests ■ Remote Interests • Quasi - Judicial • Common Law Conflicts of Interest Ethics — Prohibited Acts No municipal officer may disclose confidential information or use it for his or her personal gain. Ethics - Prohibited Acts Incompatible Offices • Prohibits an individual from simultaneously holding two positions that are "incompatible." Different organizations • City Manager and county commissioner • County engineer and city engineer • City Manager and council member • City marshal and council member • Others. Ethics - Situations that Impose Limitations Prohibited Financial Interests • A council member may not vote on a matter where he or she would be specially benefited. 13 Ethics - Situations that Impose Limitations Member must disclose, not lobby, and vote cannot be counted: • Remote Interests. A "remote interest' is: • that of a non - salaried officer of a nonprofit; • that of an employee of a contracting party where the compensation of such person consists entirely of fixed wages or salary; • that of a landlord or tenant of a contracting party; or • that of a holder of less than one percent of the shares of a corporation. Ethics - Situations that Impose Limitations Body may act, but member should Not participate: Appearance of Fairness. Ethics • There are some gray areas. • Some exceptions from the provisions of the Act. • If you have any questions, please feel free to contact me in advance so we can discuss it. I am always available to you for that purpose. Ethics - Situations that Impose Limitations • In the event a council member has a remote interest in a contract, the city can make the contract, and the member is not required to resign. • The member must • disclose the extent of his or her interest, • not vote, and • not attempt to influence any other officer of the municipality to enter into the contract. Ethics - Situations that Impose Limitations Member must Abstain: Common Law Conflict of Interest. In this situation, the council can act on the matter before it, but the council member should not vote on, for, or against the matter. Ethics - What to Do When a city council member determines that one of these rules applies, the member should: (1) state on the record the interest; (2) state the course of action the member will follow (as an example, "I will not vote on this issue and will not participate in deliberation "); (3) and then follow through. Once the course of action is declared, the member should not later deviate from it. 14 Ethics - Application Ethics - Application The standards are considered to be minimum ones. Ethics Alaska Supreme Court Noted: "As in case of the judiciary, it is important that the legislature not only avoid impropriety, but also the appearance of impropriety." • Always advisable to avoid even the appearance of impropriety. ■ Duty of each council member to be aware of ethical considerations. Questions? 15 ry Financial Overview Presented by: Yvonne Ziomkowski, Finance Director Council Retreat, January 9, 2010 Today's Agenda o Budget Introduction o Financial Overview o Financial Trends o Into the Future ■ 1 Budget A ir Introduction Budget ' PORT ANGELES, WASHINGTON 2010 BUDGET - in Partnership 'Mil 1 the Community - o Most Comprehensive Document prepared by City . Policy Document • Financial Plan • Operations Guide • Communications Device 2 it Transportation Plan Budget Land Use Plan Water Comp. Plan L_ GMA Sewer Comp. Plan Capital Facility Plan I Park Plan Fire Master Plan Economic Development Plan Storm Drainage Comp. Plan A good budget process aligns requirements with the overall plan for service to the community.. . Police Master Plan ... AND ties everything to the available resources 3 I Governmental I I , General Special_ Revenue -1 :fund Types ❑Financial Outlook Financial Overview -- Debt Service Capital- Projects I Fund Types I Proprietary I I Fiduciary I I — I _ Enterprise _I I Firemen's Pension I —1 Electric-_ _I - Lodging Tax - Water - -1 Street I —I Wastewater v1 —1 PenCom ( --I _ Solid Waste I Rec. Activities 1 — _Medic 1 _ Li Capital Improvement = Permanent L --I Esther Webster Trust' —1 Internal Services -I --I Equipment Svcs. —I Information Tech. I —1 Self Insurance ^I 4 r it Financial Outlook O 2009 Wrap -up O 2010 Budget O Beyond 2010 2009 Budget -in -Brief 1st review of 2009: Mid - January O Final 2009 review: End of March O Audit: May 5 Ali 2010 Citywide Budget Operating $86M Capital $14M 11 2010 Financial Outlook First, the Good News. . . o The 2010 Budget is balanced and adopted o No personnel reductions were made in 2010 (except pool employees) o All employees received a COLA for 2010 6 r Alt 2010 Financial Outlook o Now, the Bad News.. . ▪ The 2010 Budget is balanced mostly due to 1- time savings • Closure of Pool • 35% decrease in PERS rates • AND, 1 -time revenues o Increase in Grant revenue o Construction projects ▪ PLUS, use of reserves to reduce user fees • PenCom o Medic I AO Financial Trends • Sales Tax o Interest Income • Permits o Grants o Retirement Rates • Medical Costs o Debt o Fund Reserves 7 1101 Financial Trends Did You Know? Since. 2007, General .Fund- lost over $1 million in just 2 revenue sources' •Sales Tax (over $700K) •Interest Income (over $300K) Sales Tax Collections Sales Tax & Interest 83,500,000 $3,250,000 $3,000,000 82,750,000 $2,500,000 82,250,000 Historical Sales Tax Collections d 1.65M /,j 7 5 - .51m 3.36M / 25 / M�` 3.19M 2.93¢x" S2.65M $2,000,000 N X 990 ^ � , , is ti °o� ryoo° b ry °o6 is tio� ti o ,so Sales Tax collections are budgeted at the lowest level in 7 years 8 n GF Interest Revenue mgo- $500,000 $450,000 - $400,000 - $350,000 - $300,000 - $250,000 - $200,000 - $150,000 - $100,000 $50,000 $0 - 0 O ti h 0 ^O A ^ 9 ry 0 X 0 �0 �y �y ry0 e e AO Financial Trends Did You Know? ((ey a Aeti ry 0 p0 J '19 Building Permits 2008 409 Idi volati .008 20 Perm Permit Fermi Permi Re venue from Nflig@ 07,6 WAD?, Cep =cted droppe i crease fl 80 °° decrea- 4+ o o mIlas }A. Dui Interest revenue has declined over $300K since 2007 9 Ali Building Permits 900 800 700 800 —� — 500 — 4- 400 — 300 — — 200 — 100 Community Development Trend Ice Number of Permits —4i—Value of Permits 1 The value of Building Permits is expected to decline almost 57% in 2010 . II 11 II II } I I 2003 2004 2005 2008 2007 2008 2009 Est 2010 2011 2012 2013 Budget Projected Projected Projected .5 Financial Trends L Did You Know? A total of $3.5 mifrion is budgeted in State and Federal Grants in 20100 •Parks $1.4 M •Utilities $645K •Transportation $587K *Housing Rehab (CDBG) $450K •Public Safety $219K *Economic Development $195K 80,000 50,000 40,000 E 30,000 10,000 PLUS, an additional $550K was just awarded to the City for Gateway 20000 Grants Over $35M in grants has been awarded in last 10 years 10 L Grant Revenue o Approach new Grants with Caution o Each new grant comes with unique requirements • All grants require very comprehensive work from accounting staff and engineers o Additional reporting and auditing requirements ▪ We must be aware of additional requirements before we apply for new grants o We must be cautious hiring new permanent staff using grant funding that has limited duration Financial Trends o Did You Know? PERS Retirement Rates are currently at 5.3 %.. . Retirement Rates HOWEVER, they are projected to be: •9% . byar2012, • and •over 10 °by 2013 oy J` M_ lavOgGim 11 Alpr PERS Retirement Costs 51,800,000 51 400,000 • 5600.000 • S400,000 5200,000 • 50 • 19 4' PERS Retirement Expenditures 51,200.000 ■ Total Cost —4— Employer Rate 51,000,000 5800,000 • ti° e P ri° ti ANIE Financial Trends Did You Know? 12.00% • 10.00% • 8.00% • 8.00% • 4 00% 2.00% 0.00% Medical and Dental Expenses have increased an average of 9% per year from 2002 to 2010 PERS costs are estimated at over $1 million per year in 2012 - -- an increase of 80% over 2010 Medical Costs 12 Medical Expenditures L U-- 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 From 2002 to 2010, medical costs have more than doubled 2002 2003 2004 2005 2006 2007 2008 2009 2010, Budget ill Financial Trends Debt Medical /Dental Expenditures 2002 - 2010 Budget The Legal Debt Margin for the City is based on Assessed Valuation The City's remaining capacity for Council approved debt is $20M 13 _OF City's Debt Debt Service per Capita FY 2010 General Revenue Obligation Debt Debt $45 $96 Outstanding Long -Term Debt Per Capita FY 2010 General Revenue Obligation Debt Debt $342 $1,511 Financial Trends -I— o Reserves Requ redL;fFun,, -,, lvan Actual Fltic1 Bal:ahc Total $141 Total $1,853 Population 19,260 Population 19,260 Fund Balance Financial Policies require that General Fund's unreserved ,fund balance be a minimum of 10% of expenditures (excluding capital). $4.1,. M (iz 2 %j 14 4 General Fund & Street Reserves L 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 General Fund and Street Reserves as a Percentage of Budget Reserves --- % of Budget AIIIF Investment in Community o City's Goal is to Continue: o Improvements to infrastructure o Investment in employees o Leadership role in community 35% -- 30% - - 25% - - 20% - - 15% - - 10% - - 5% 0% 15 Into the Future $20,000,000 519,500,000 519,000,000 g, 518,500,000 m 518000,000 $17,500,000 $17,000,000 516,500,000 516,000,000 ❑Financial Forecast oChallenges in 2011 and Beyond AO 5 -Year General Fund Forecast li 5 -Year GF Forecast t Revenues —N—Expenditures 2008 2009 Est. 2010 Proj. 2011 Pro). 2012 Proj. Assumptions: Ezpenditures;increasing 4%/year Revenues increasing 1% /year 5 5,0 00, 000 f 54,000,000 • 53,000,000 $2,000,000 • $ d Balance (51,000,000) 2013 Proj. 16 1 All Challenges in Future LA___ o Expenditure Growth expected to Outpace Revenues • General Fund to support shortfalls in Recreational Activities, Medic I, and Street Fund o Several Funds must rely on use of reserves in order to balance in 2010 • The use of nearly $300K from reserves is budgeted in PenCom Fund; and o $76K from reserves in Medic I Use of reserves in PenCom & Medic I will catch up with us in 2011 JIIIF Challenges in Future City will Lose Some Revenue Sources o Public Safety Grant only for 3 years (loss of $125K in 2012) o Archaeologist Funding will sunset (loss of $280K) o Economy may continue to negatively impact sales tax revenue with business closures /furloughs o 1 -time revenues will be lost, but City may still have related expenditures 17 Looking Forward Closing thoughts for Council consideration AO O We need to be proactive in our budgeting approach o Take comprehensive look at fee structure in PenCom and Medic I, along with utilities • Working together by using each other's strengths Questions? 18 Answer $2,000 per City of Port Angeles resident Combined Sewer Overflow (CSO) Program Update City Council Retreat January 9, 2010 What are CSOs? Discharges of untreated wastewater and stormwater released directly into marine waters, lakes, and rivers during periods of heavy rainfall. Question What is the City of Port Angeles unfunded mandated Combined Sewer Overflow Project? Presentation o Location and Magnitude of Problem o Regulatory Background o Projects (Phase 1 & Phase 2) o Current Issues • Moving Forward Duration & Quantities o 30 -100 events/ year at the 4 remaining outfalls o Each event 10 gallons to 12 million gallons o Duration can be 5 minutes to multiple overflows in 1 days 1 Public Education & Notification o Postings at each location & City Website o Notify LEKT, DOH, DOE, Marine Life Center, City Staff, County at beginning, end of each event via e-mail o Annual notification to utility customers Two Options 1. Disconnect sources of stormwater "inflows" into the sewer system 2. Increase capacity of sewer collection system & convey to WWTP and /or CSO outfalls 4 Remaining CSO Sites t Regulatory Background j ; 0; c - A , • ; 4 . 0. o Regulated under the WWTP's NPDES Permit — since 1991 o Updated Plan September 2006 o 2 phases of projects total $38 to $45M o Agreed Order Oct 2006, amended July 2007 o Annual Reports to DOE Option 1 Disconnect Sources of Stormwater o Disconnection Pilot Project 2001 -03 o Estimated to cost $35 -50M plus cost for necessary Stormwater improvements o Work phased over many years o Still would require add'I CSO capacity improvements 2 Option 2 Increase Capacity of Collection System o Review of this option included need for storage upstream of WWTP and /or wet weather treatment plant o Estimated to cost $38 -45M as of March 2009 o Complete NLT December 31, 2015 o No Stormwater improvements needed o Preferred alternative Lower Elwha Klallam Tribe o Design must respect cultural aspects and Tribal interests on site including: Site history Avoid ground disturbance Restoration of Ennis Creek o MOA with Tribe o Future Tribe sewer connections Harbor Works Public Development Authority (PDA) Set up with 3 parallel, but separate, goals: 1. CSO Project — Tank on Rayonier Site 2. Harbor Planning 3. Assist in Remediation and Re- development of Rayonier Mill Site o Lower Elwha Klallam Tribe o Department of Ecology o Harbor Works Public Development Authority o Rayonier Properties, LLC Department of Ecology • Enforce Agreed Order (Water Quality Program) • Support of Rayonier Clean Up and Redevelopment (Toxics Cleanup Program) Key Relationships Location Map :.A rw 3 Phase 1 Funding • Two PWTF Design Loans - $ 1.4M • Two PWTF Construction Loans - $11.9M Subtotal $13.3M To complete Phase 1 funding, still need a DOE SRF construction loan of «$6.5M Phase 1 Projects Projects, w /estimated Construction costs: o Force Mains, Oak St. to WWTP - a Francis St. Park diversion - a Storage Tank modifications - © Flow diversion facility, pump station & WWTP modifications - ▪ Bridge over Ennis Creek - Total Phase 2 Projects Total Estimated Phase 2 Cost = $22M Phase 1 Design $6.0M $3.4M $2.8M $5.9M $1.7M $19.8M • Downtown Gravity Sewer Mains • New Pump Station 4 & more Force Main © Additional WWTP Improvements • Design on hold from June 08 to April 09 • Need to complete permitting, which requires additional onsite investigations • Rayonier authorized onsite access & permitting work in March 6, 2009 agreement • Scheduled to be completed by July 2010 4 Phase 1 Project Milestones ▪ 60% Design Review in April 2010 • Design completion by July 2010 • October 2010 DOE SRF Loan application deadline • SRF funds available Summer 2011 • Construction begin Summer /Fall 2011 • Construction complete late 2013 Fallback Options 1. Avoid Rayonier property ($75 -150M) a. Roof drain disconnection /stormwater alternative; and b. Store and treat CSOs at other location(s); site new outfall downtown or at Francis St. Park; re -route force mains from pump station 4. 2. Eminent Domain action Questions ? Rayonier property associated with CSO Project o Buy tank, south half of property, and easements from Rayonier. OR o Acquire tank and easements as part of larger redevelopment plan o Trade For City's Assistance In Cleanup And Redevelopment OR o Acquire only tank and easements for associated pipelines and CSO facilities from Rayonier Recommendation o Complete Phase 1 design o Secure property rights o Secure funding o Amend Agreed Order o Construct Phase 1 5 AIA REPORT PLACEMAKING fM PORT ANGELES AIA 2009 IMPLEMENTATION • PA Forward Prioritization • Comprehensive Plan Changes • Capital Facilities Plan items • Facade Improvement Pilot Program • Public Involvement • Funding Opportunities AIA PARTNER IMPLEMENTATION • Community at Work - Painting the Downtown • PADA — Twighlight Festival X 2 • Farmer's Market Downtown • PADA Banner. Program • Private Sector Facade Applicants • Blackball Ferry Terminal Design 1 AIA 2010 IMPLEMENTATION . .'h : l... F .K .:. ..... . ^. _.v im— • Sign:lnvent•ry and Removal (JanuaryL) ▪ 'Waterrront Promenade (January) •' Do ntown Parking • Revitalization District (February} • Residential :Parking Permits (February) • Signage and Wayfinding (March) • Entryway,Monuments, (March) AIA 2010 IMPLEMENTATION • ViewshedArialysis (March) • Form Based Code Education (April) • Building Height Study (September) • Facade Improvement Program X 2 (Continuous) • Blackball Ferry Terminal Coordination (Continuous) MA PROJECT FUNDING • Lodging Tax Grants — DOWNTQWH WATERFRONT PROMENADE ''i7,00O "2010) 51G & WAY FINDING ;$ 2m01($50,G00 -2J ) -- ENTRYMON1 mem 1($'15,100- 2Ct0}(V5,000.20i1) • Tiger Grant ($35M) • DOE Grant ($200K) • CDBG Income ($113K 2109 thru 2010) • NICE Funds {TBD) • Economic Development Fund (TBD) 2 DOWNTOWN WATERFRONT 6 PWA5ES OF DEVELOPMENT DEIINEEN HOLLYWOOD 2EACH AND THE VALLEY CREEK ESTUARY DOWNTOWN WATERFRONT S1GNAGE AND WAYFINDING • Inventory existing signs • Design concept • Determine locations for new and replacement signs • Install slgnage F KO priority locations 3 DOWNTOWN WATERFRONT • Ferry passe riper waiting • Art & ye ndor v nues • Weter accessibility • Informat kiosks .3 sip nage • Saa:alg 8 kiOning SIGNAGE AND WAYFINDING el • Olympic Mod Kai Canter Ho spits I • Peninsula College • Olympk National Pal • Ferries • C.. rnitant CgmplbY • Downtown • Clellem County Fair' 010W • Airport • Edo Hook •Feiro Marine L de Center • Chamber Vis:or's Canter • C amain unly Pleyere Theater • Poll Angeles Finn Arts Censer • Library • Golf Course • Boa t Hsye n •C loin field, Dims Pleygro Lind, skate pert. • Post Gift. ENTRY MONUMENTS y Wrist Entry at I Lauridsen and I Lincoln East Entry at Highway 101. 3e° and Front spill 4 A1A PARTNERS • Ch tub of • Clallamtounty. . • Clallam Transit • Lower EIw is Klallam Tribe • Port Angeles Downtown Association • Port Authority • Private Sector AIA BENEFITS • Placemaking for Residents and Visitors • Catalyst for a 'Together We Can" Attitude 4DP) • Promoting Public and Private Community Investment and Involvement • Creating Attractions, Accessibility, and Visibility • Development of PA Tourism Product • National Recognition 5 • • (FUTURE ECONOMIC DEVELOPMENT STRATEGIES Working through an assortment of challenges and opportunities to create a sustainable economic future for our City, County, and Community UTURE ECONOMIC DEVELOPMENT STRATEGIES loo Firm Answers or Solutions Today •. For Open Discussion and Council Reactions 1. Key Points of Community Consensus 2. Major Community Assets 3. Major Challenges 4. Current Concerns " 5. Other Economic Development Players 6. Funding Sources 7, Steps for Moving Forward 1 FUTURE ECONOMIC DEVELOPMENT STRATEGIES • • Goa, for Discussion M ittEY POINTS OF COMMUNITY CONSENSUS • • Movement from traditional dependence on mills or timber industry Focus on creating family wage jobs Focus on creating diverse local economy Avoid negative impact on natural assets KEY'POINTS OF COMMUNITY CONSENSUS Focus on improving and expanding infrastructure partnership of major private companies and public agencies working together ;Others? —Since this is a critical issue, reach agreement on initial steps to move forward over next 60-90 days • • 2 • • • 'iVIAJOR COMMUNITY ASSETS * Natural Beauty Community Leadership i .. • 'Quality Work Force — Excellent Work Ethic - Peninsula College I T 1 7MAJOR COMMUNITY ASSETS . . r.,.... - . Excellent Quality of Life ' Ii ' li °"..-, • • Harbor Access " - -. Airport with Commercial Services • Quality Infrastructure — Broadband l . ' •••• Medical Care • Affordable Housing l Others?? :MAJOR CHALLENGES .:. - tocation Lack of Rail Services or 4 Lane Highway - 'Limited Financial Resources `• 'Washington State Regulatory Environment Others? 3 CURRENT CONCERNS • CURRENT CONCERNS • No common vision /consensus on haw to expand local economy - What types of new businesses to attract? Several agencies devoted to economic development — No real effort to combine resources or work in common direction — None taking charge to lead effort o real strategy to effectively use , resources from City's Economic Development Fund — Maximize economic impact -- Sustain fund — Flexibility to respond to new opportunities Relocation of businesses to the County CURRENT CONCERNS • Minimal focus on business retention .— identify businesses needing assistance before they close • Limited Federal and State Representation — Challenging to get assistance and support • • 4 'KEY LOCAL PLAYERS • City of Port Angeles • Clallam County • Economic Development Council • Port of Port Angeles • Chamber of Commerce • Olympic Tounsm Commission Business Incubator • PA Busyness Association • PA'Downtown Association • Harbor -Works Development Authority Peninsula Development District Peninsula College Washington Slate Dept. of Commerce How to non rdi n ato t e ncum aII have the xame griorities ?? 'POSSIBLE FUNDING SOURCES • NICE Funds' • • Local Revitalization Funding • -:Transportation Benefit Distracts • • Economic Development Fund STEPS TO MOVE FORWARD?..... 3 4. 5: 5 CALL TO ORDER - REGULAR MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: PUBLIC CEREMONIES/ PRESENTATIONS & EMPLOYEE RECOGNITIONS: Break PUBLIC COMMENT: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: CI'T'Y COUNCIL MEETING Port Angeles, Washington December 15, 2009 Mayor Braun called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. Members Present: Members Absent: StaffPresent: This item was removed from the agenda. 1 A i orki [11�1Trt 5AMQ Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams. None. Manager Myers, Attorney Eloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, N. West Y. Ziomkowski, R. Bonine, L. Dunbar, L. Gunderson. C. Hagar, P. Lusk, T. Pierce, and S. Roberds. The Pledge of Allegiance to the Flag was led by Councilrnember Kidd. Public Safety Meritorious Service Award. Mayor Braun, Manager Myers, Fire Chief McKeen, and Police Chief Gallagher presented a proclamation recognizing meritorious service to the community to Leonard Beil. Port Angeles HarborWorks Development Authority Jeff Lincoln, Executive Director of the Port Angeles HarborWorks Development Authority, used PowerPoint slides to present an update on the PDA. 3. Public Service Recognition of Mayor Braun, Deputy Mayor Wharton, and Councilmembers Rogers and Williams. Manager Myers presented Public Service Recognitions to each of the departing Councilmembers. Mayor Braun recessed the meeting for a break at 6:41 p.m. The meeting reconvened at 7:05 p.m. Francis Charles, chair of the Lower Elwha Klallam Tribe, expressed her gratitude for the departing Councilmembers, and welcomed the new Councilmembers. Municipal Code Amendment MCA 09 -02 CITY COUNCIL MEETING December 15, 2009 PUBLIC HEARINCS- OTHER: Determination OTHER CONSIDERATIONS: 1. Public Utilities Regulatory Policies Act (PURPA) Mandatory Standards Phil Lusk, Power Systems Manager, used PowerPoint slides to give a presentation of PURPA. Mayor Braun continued the public hearing at 7:19 p.m. There being no public comment, Mayor Braun closed the public hearing at 7:19 p.m. It was moved by Rogers, seconded by Perry to Pass Resolution No. 28 -09, A RESOLUTION of the City Council of the City of Port Angeles, Washington, adopting Findings and Conclusions relating to the Public Utility Regulatory Policies Act (PURPA). Motion carried 7-0. 2. Wildwood Terrace — Project Performance for CDI3G Grant Economic and Community Development Director West explained the requirement for the public hearing. Mayor Braun opened the public hearing at 7:22 p.m. There being no public comment, Mayor Braun closed the public hearing at 7:22 p.m. It was moved by Di Guilio, seconded by Kidd to: Authorize the CDBG Chief Administrative Official to sign and close out the report. Motion carried, 7 -0. 1. Dry Creek Water Association Special Services Agreement A presentation was g by Glenn Cutler, Public Works Director. After Council discussion, given It was moved by Perry, seconded by Rogers to: Approve and authorize the Mayor to sign a Special Service Agreement with the Dry Creek Water Association, and authorize the City Manager to make minor modifications to the agreement, if necessary. Motion carried 6 -0, with Councilmember Kidd abstaining. 2. Clallam County Shared Resource Conservation Manager Program A presentation was provided by Phil Lusk, Power Systems Manager. After Council discussion, It was moved by Di Guilio, and seconded by Perry to Support Clallam County's initial proposal under the Shared Resource Conservation Manager Program. Motion carried 6 -0, with Councilmember Williams abstaining. 1 ACTIN NiiNv CITY COUNCIL COMMITTEE REPORTS: LATE ITEMS TO BE PLACED ON TI•IIS OR FUTURE AGENDAS: FINANCE: CONSENT AGENDA: INFORMATION: ADJOURN TO EXECUTIVE SESSION: RETURN TO OPEN SESSION: ADJOURNMENT: kCI l oN PA ( Nu T6 5 sMP(L Councilmember Rogers stated she would continue her legislative work, statewide, for all cities, and that she is still working to secure money for PenPly. Councilmember Williams stated that he wanted to add three items including: modification of Council compensation, designating City Council Position #1 as the Mayor. and repealing City Council term limits. It was moved by Rogers, seconded by Williams to: Add the Finance agenda items to the Consent Agenda. Motion carried 7 -0. rli ks . rr“.1.•.• 1c. S14MPL CITY COUNCIL MEETING December 15, 2009 It was moved by Di Guilio, and seconded by Kidd to approve the consent agenda to include: 1.) Energy Northwest Interlocal Agreement — Morse Creek Hydroelectric Project; 2.) Interagency Agreement for Perfornance Based Contracting, Amendment No. 2; 3.) Lodging Tax Advisory Committee -- 2010 Capital Projects Funding Recommendations; 4.) Consultant Agreement with Hammond, Collier, Wade & Livingston (1-ICWL) for Disaster Events on ,November 16 & 17, 2009; 5.) City Council Meeting Minutes of December I, 2009; 6.) Expenditure Approval List from 11 /21/09 to 12/3/09 for $3,069,327.44; 7.) Materials Purchase: Electrical Transformer, Contract PW -09- 026; 8.) Lipman — Stone, Resolution No. 29 -09 to set Public Hearing; 9.) Enron Settlement Agreement; 10.) ,Facade Improvement Program Grant Awards & Contracts. Motion carried 7 -0. Manager Myers discussed the Building and Finance reports, Lodging Tax Advisory Committee recommendations, Faccade Improvement Program, and PenPly. He stated that Attorney Bloor would be the acting City Manager for the remainder of the week, Council adjourned to Executive Session for approximately 15 minutes under the authority of RCW 42.30.110(1)(g), to review performance of a public employee. The Executive Session convened at 7:51 p.m., and at 8:10 p.m., the Executive Session was extended for an additional 10 minutes by announcement of the Mayor. The Council was joined by Manager Myers. The Executive Session concluded at 8:21 p.m. The Council convened in regular open session. It was moved by Rogers, and seconded by Perry to: Authorize the Mayor to sign an amendment to the City Manager's employment contract to adjust the City Manager's compensation to include a 2% cost of living adjustment and 3% merit increase. Motion carried, 7 -0. The meeting was adjourned at 8:22 p.m. Dan Di Guilio, Mayor Janessa Hurd, City Clerk 3