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HomeMy WebLinkAboutAgenda Packet 03/06/2001 I~ I ""\"" '--" ._:~.) "'" . , ,:,,~;,,-' -"L,'.~,:-::- ',,, ;'''''- .,:\"e' c,' ':if;F})t,__:_ - liDo" < <R':!rl.~N 1 "'G' . rtj~~~~'F, :;1=-.",,;:11-1:' ,DD. '-~"'--<c7~ _.> ...' , , -- ';'" , , '.'AGENDA"',' ,,' ":",:T'--,'- ::\~;~:-- _ _,':<:(~','--::'-:"/.-~:,~~-: .'," ,; >:,.:>e':',.' -','_ ';.i:,>:> '>,..-,:,<,::'~~~'~\-,:::.:_,---"(;::'_i' :;CITYG(lUNCIIJ~MEETIN ' ":_ '- " '''''-'\''", " /'F .",' ", "~-""""V~', .' "'.: - :""-"_'~~_# ':','" . "'A,"",,_,',;:I;;,,''-'- :'.; , 321 EAST FIFTH STREET ' ,h -'- ')'--L-':~- '. ;;>:, }':~,_:>:-; ','" ,:;" "'~' ,~;'March'6'2001 :;, ';c" ;rt;_~':,~>__-,,,{ :(~ ':.- ; ','" _,~i.: ~;(.-;:':"~',;>-:~ ,;-, ''',.,,' -, ,~-, - , ,,- " ,-~- 4t~>---\~:': _>.,:_, _ _'~_~''':':: .:: :;: REGU, ,LAR~~F;ETIN,G' ;'6:00,',p.m. . . . . . . I PLEDGE OF ALLEGIANCE- CEREMONIAL MATTERS & PROCLAMATI.ONS B. WORK SESSION / PRESEN]~'1IIQ,~S", '1. Interviewapplicant for P~CoIDrnission 2. Final Report regarding E-nable Visiqns,c. Survey"'" C. Action -"'_".~d . NOTE: HEARING DEVICES'AVAIEABCEi$ORTHOSE NEEDIN6,isSISTANCE. MAYORTO'DETERM1NE~'I'iMEc,()Jij.BREAK> ...... '" . u' ., . ." March 6, 2001 .... . ...... Port:l\ngelesfCitjr €olplcilMeeting _ "~,""':~"'!lt~"'f.t~('~<~;"1.:j:'t"-,' .'-'f..; ::~.."'.~".-..~~'~ OTHER' CONSIDERATIONS L;,Park Board Vacahc}tj~ppointments 25 2~'~~f~00.~~,~~~jq~~:U4;~ort ". ....' 27 3. Agreement With ClUiiilberof.Commerce and 53 NOPVCB for Tourisirl& Promotion services 4. Contract amendment for Tourism & Marketing 61 Program: Chamber of Commerce and NOPVGB : PUBLIClIEARINGS~,.QUASI;;;JUDICIAL ,:r('7:00 P.M. oriisg <.~f~rf . '. ".' Action Action Action Action ,', ;.' ";"'~'j:~iP~'f,j;<-;" .' ,,,,,,.\ <<l',',"", ':t'__.~,i:, . PUBLIGHEARI~GS :. OTHER L. INFORMATION L..City Manager:s.Rep,ort &.Calendar (Page 63) * City Departmental Projects status Report (Page 65) * . Expenditure'CO,np-ol Procedures (Page 69) * Initiative 7f~ !tiformation (Page 75)~ '2. .P1annittg CommiSsion Minutes- February 14, 2001 (Page 79) 3: HumaneSociet)rReport;January 2001 (Page 83). ........ .....,'.. 4: Clallam Count}rEI)CMon~y lWport - February 200 i 1 (p~~~$) M. EXECUTIVE SE:SSION (As needed and determined byCityAttorney) ..."........,..,..............................................,."......,.......,.u.,..... .,...,...............,.....................................' ,............",..,.",........ .. .... ....... ...EpUam'HEARtNGSh. .... .... ... '.. . . ~~41.~!!~.:!~1'~~~~~~,~~i~~S:~ "" "".. .:.,,~::.:::::::~<<~~>iH[11q~:::/~::;::.. ". '.' ':.'.: ':.:..;.::~:..':<:;;;~;:;;.~~;;:~ ';:::;::x"::; , ;:::~H~Y~~HULi; . March 6, 2001 G:\CNCLPKT\AGENDA \OI-0306.wpd .':;. '> NOTE: HEARINGDEVIQES, AV AIUABLE FOR'rHQSE';NEEDING ASSISTANCE , :":MAyOR~TOnETERMINE:TIME~FiBREAK ;i:' PotfArige1es Gity. Council Meeting - ,,4:'~:,:I, '-P"iA\ '''''c;,r?,~'~t!;!;\,.~,_,."\'>' ~,~{;"x-';l',''h;~:'f?\~~'':1:'~~;J'~''s . J, . . ~ORTANGELES WAS H I N G TON, U.S. A. 1. CITY OF PORT ANGELES CITY COUNCIL MEETING CALL TO ORDER - REGULAR MEETING: II. ROLL CALL: Members Present: Mayor Doyle Councilman Campbell Councilmember Erickson Councilman Hulett Councilmember McKeown Councilman Wiggins Councilman Williams Staff Present: Manager Quinn / Attorney Knutson Clerk Upton B. Collins M. Connelly G. Cutler D. McKeen T. Riepe y. Ziomkowski Ill.' PLEDGE OF ALLEGIANCE: =* -+ V ~ V ~ ~ Led by: ~tf'~ ~o~ - .1 March 6, 2001 toRED.W\ . , CITY OF PORT ANGELES · ~ORTANGELES WAS H I N G TON, U. S. A. CITY COUNCIL MEETING Attendance Roster DATE OF MEETING: March 6. 2001 LOCATION: City Council Chambers City of Port Angeles ~ORTANGELES WAS H I N G TON, U. S. A. Ordinance/Resolution Distribution List City Council Meeting of ~ (l RIo I ~ OQ I ~ <.I_f)/ ~ ~n.A .~-t)1 ...-. -. ,\,.:. ...n..... A ( II .....j "Mn....+ v._J... /'I';" ,,6 'T '11~ 1.,'lIV\n A " l..- I '- / fI 7\ ^:< 1 h) City Manager 0 City Atty. (1) I ./ ,/ Planning / '/1/ City Clerk ,!)// ~V Denutv Clerk /7 ,7 Personnel IV' Cust. Svcs. Finance ,/ Dir. /Mgr. Police Dept. I V Fire Dept. 1./ 4V" Light Dept. / Pub. Works (2) .!) -7 :JV Parks & Rec. I ./ f 7 MRSC (l) I V' I V PDN (Summary) Extra Conies I TOTAL I I:; ~ &JA . . . DATE: To: FROM: SUBJECT: FORTANGELES WAS H I N G TON, U.S. A. CITY COUNCIL MEMO March 6,2001 MAYOR DOYLE AND CITY COUNCIL Becky J. Upton, City Clerk/Management Assistant~ Interview and Possible Appointment to Fill Vacancy on Planning Commission Summary: There is currently a "vacancy on the City's Planning Commission by virtue of the departure of Mr. Robert King. The City received two applications for consideration; however, one of the individuals has since withdrawn his application. The remaining applicant is Mr. Wayne Doty. Recommendation: It is recommended that the City Council interview Mr. Wayne Doty during the Work Session portion ofthe Council meeting and consider his possible appointment to the Planning Commission for the unexpired term ending February 29, 2004. Background / Analysis: Effective January 1,2001, Robert King submitted his resignation from the Planning Commission, as he has moved out of the Port Angeles area. His departure has created a vacancy for the unexpired term ending February 29, 2004, and Mr. Wayne Doty has submitted an application to fill the vacancy. Planning Director Collins has submitted the attached memorandum with some suggested questions that are germaine to the duties of the Planning Commission. Mr. Doty's application is also attached for your information. Attachments 1 DATE: To: FROM: SUBJECT: ~ORTANGELES . WAS H I N G TON, U. S. A. CITY COUNCIL MEMO March 6, 2001 MA YOR DOYLE AND CIry COUNCIL 1 Brad Collins, Community Development Director ~ . Planning Commission Interview Questions Summary: From time to time, the City Council interviews candidates for appointment to the Planning Commission. The primary duties of the Planning Commission include advising the City Council on major land use policies such as the comprehensive plan, rezones, and subdivisions; deciding certain land use applications such as conditional use, unclassified use, and shoreline 'permits; interpreting uses not expressly peJ:1Ilitted in the Zoning Code; and acting as a research and fact-finding body. The following questions provide examples of inquiries that should be made of candidates to assess their knowledge of and approach to development issues. Recommendation: Consistently ask the same questions of each candidate. It is most easily . accomplished by each Council member asking each candidate the same question. There are no right or wrong answers to the sample questions, but each candidate's answers can help to distinguish their individual level of planning knowledge and different approaches to deciding issues, articularly in re ard to the Ie al context of ro erty and civil ri hts. Sample Questions: 1. What are some of the strengths and weaknesses about the land use planning that has been done in Port Angeles and what new planning policies would help in the future? 2. What is the relationship between the Zoning Code and the Comprehensive Plan? 3. You are in favor of a project that violates the City's Zoning Code, what actions can you take? 4. Vacant buildable land is in short supply for what type of zones in Port Angeles and why do you think this is so? 5. As a Planning Commissioner, when is the best time to discuss a matter that's scheduled for a public hearing at the Planning Commission? . 6. How would you resolve conflicts inherent between different Comp Plan policies? . 7. How do you feel about making some decisions which are only advisory to the Council? 2 G:\CNCLPKT\PLANNING\O 1 0306.wpd ~'~~'i;~~~'{f", ,~i\);i:,"''lf1.\)"~~'i" "'i . ~ORT.ANGELES ill rn~~:~ rn 00, WAS H I N G TON. U.S. A. CITY OF PORT ANGELES CITY CLERK Application for Appointment to a Board, Commission, or Committee Board, Commission, or Committee to which you are seeking appointment Planning Commission Board or Commission Full Name Board or Commission Full Name Board or Commission Full Name Applicant Name and General Information Wayne A. Doty First MI Last . 521 West 15th Street Home street address Port Angeles, WA 98362 City State Zip Code 360-457-5047 Home phone number Rocket 360-457-4242 r ~prh lhO-4~?-??75 Work phone number Certification and Location Information Circle one Are you currently a City employee? Yes @ Are you a citizen of the United States? @ No Are you a City resident? @ No Do you own/manage a business in the City? @ No Do you h~ld any professional licenses, registrations or certificates in any field (list below)? ~ No Professional Engineer (Mechanical & Fire Prn~~r~inn) Fire Sprinkler Designer - Level 3 . Are you aware of any conflict of interest which might arise by your service on a City Board or Commission? If so, please explain: I may be involved in a proi ect brought before thp. commissioners. I do not know of any proiects at this time. In compliance with the American Disabilities Act, if you will need special accommodations because of a physical limitation, please contact the City Clerk, 417-4634, so appropriate arrangements can be made. (OVER) ~:to' -P~ c::l-5=-h, bt 3 WAYNE A. DOTY, PE Mechanical and Fire Protection Engineer --------------------------------------------------------------------------- . PROFESSIONAL POSITIONS Engineering Manager, C Tech Defense Corporation Responsibilities include: 1 Design of sabot and sub-projectiles using finite element analysis, solid modeling, system simulations and physical testing. 2 Manage a team of engineers and technicians to efficiently and safely operate an engineering office and explosive test site. 3 Provide review and support for bidding and maintaining contracts for engineering services. 4 Design of test fixtures and equipment. 5 Perform manual and computer aided drafting, programming of computers, fluid dynamic analysis and structural mechanics. May 1999 - present Project Engineer, C Tech Defense Corporation July 1997 - April 1998 Responsibilities include: 1 Design of projectile assembly components and test equipment. Including manual and computer aided drafting, programming of personal computers, fluid dynamics and structural mechanics. 2 Contract evaluation and bidding of engineering services and systems. Principal Engineer, Rocket Engineering Services March 1992 - present Responsibilities include: 1 Design of mechanical systems. Including manual and computer aided drafting, programming of personal computers, hydraulic analysis, and system performance evaluations. 2 Contract evaluation and bidding of mechanical systems. 3 Manage the material acquisition and installation of mechanical systems. 4 Consulting with City, County and State agencies on mechanical systems. . Aerodynamics Engineer, Cessna Aircraft Company July 1988 ~ March 1992 Responsibilities included: 1 Evaluate performance, stability and control characteristics of new designs as well as those due to changes of existing aircraft. 2 Collect, analyze and apply wind tunnel and flight test data as it applied to aircraft performance, stability and control. 3 Write, modify and run aircraft and engine performance programs on an IBM mainframe, personal computers, and a MicroVAX. DEGREES AND LICENSES 1 Bachelor of Science in Aeronautical & Astronautical Engineering from the University of Washington, 1988 2 Licensed as a Professional Mechanical Engineer in Washington State since January 1994. 3 Licensed as a Professional Fire Protection Engineer in Washington State since January 1997. 4 Licensed as a Level 3 Fire Sprinkler Designer in Washington State since January 2000. . 4 1 I. -. . . . WAYNE A. DOTY, PE Mechanical and Fire Protection Engineer --------------------------------------------------------------------------- PROFESSIONAL PUBLICATIONS "A Flight Test Investigation of Certification Requirements for Laminar- Flow General Aviation Airplanes," Co-author: Gregory S. Manuel of NASA Langley Research Center, Presented at AlAA Flight Test Conference 22-24 May 1990. Paper No. AlAA-90-1310 "Flight Test Investigation of Certification Issues Pertaining to General..., Aviation-Type Aircraft with Natural Laminar Flow," NASA Contractor Report 181967, April 1990. "Upset Maneuver Speed Calculations," FAA Certification Report No.. A-560-2-1, 26 October 1988. ADDITIONAL EDUCATION 1 Computer Aided Drafting and Manufacturing Course by Cessna Aircraft Company - July 1989 2 Aircraft Stability and Control - Open and Closed Loop workshop by Kansas State University - June 1990 (3.5 CEU) 3 Technical Writing Class at Wichita State University - November 1990 4 Introduction to Business course at Wichita State University 5 Cross Connection Control Course by Washington Environmental Training Center - September 1992 6 Automatic Sprinkler Systems Seminar by National Fire Protection Association - November 1993 (2.4 CEU) 7 Exploring and Understanding Soils Workshop by the Washington State Environmental Health Association - May 1994 (.6 CEU) 8 Managing Multiple Projects, Objectives & Deadlines workshop - September 1994 (.6 CEU) 9 Third Bi-annual Drinking Water Seminar by Kitsap County Health District, Rural Development Committee, and PUD #1 - November 1994 10 17th Annual Washington Water/Wastewater Operations Workshop by Washington Environmental Training Resource Center - March 1995 (1.8 CEU) lIOn-Site Systems Workshop by University of Washington - Fall 1995 (1.8 CEU) 12 Environmental Site Design by Peninsula College - Winter Quarter 1996 (3 CR) 13 Building Codes Review by Peninsula College - Winter Quarter 1996 (2 CR) 14 Working With the Government (An Overview of the FARs) - December 2000 (3 CEU) 2 5 c . . . 6 . . . DATE: To: FROM: SUBJECT: ",'<" FORTPr.NG' E'L' ES" . .. .. '. . ; .. : ~ . . .' ," ". '.. : . . :. : .-, . ' ... ~ : ...'> '.' ; : .: , '$ ; : : " mnn 0 . .. ..' . ..' o. .nn' n" WAS H I N G TON, U. S. A. CITY COUNCIL MEMO February 26,2001 MAYOR DOYLE AND CITY COUNCIL . J-- Timothy J. Smith, Economic Development Direct~ Final Report regarding E-nable Visions Survey Summary: Last year, the City Council approved a recommendation by the Port Angeles's Works! Ad~isory Committee to engage the community in an intensive outreach process called the E-nable Visions Survey. The survey's primary purpose was to compile a basic measurement of Internet use and e-commerce trends in Port Angeles. Once gathered, that information could be used as a baseline for local government and business decisions related to technology investment and the development of Internet specific community business and other services. Recommendation: Receive the resentation on the information athered and acce t the re ort document. Back2round I Analvsis: Since mid-2000, the City has been investigating several approaches for diversifying economic development opportunities. A high priority target identified in the 2000 Port Angeles Works! Marketing Plan targets the "new economy" technology sector. The potential for City involvement in the deployment of telecommunications infrastructure and other efforts to attract the "new economy" have been identified as technology initiatives that can assist us in retaining, expanding and attracting new employment opportunities to Port Angeles. In further support of this initiative, the Port Angeles's Works! Advisory Committee encouraged the City to conduct a survey of the community which included an intensive communication and education outreach process regarding e-business. The approach was labeled the "E-nable Visions Survey" and was launched during the Fall of2000. The survey, conducted under contract with DenRee Productions, has been a concentrated effort to sample Internet' use and trends of the Port Angeles Economic Trade Area, specifically analyzing how technology is currently impacting the Port Angeles marketplace. The goal of the survey has been to illustrate these trends in order to provide our community and community leaders a "benchmark" from which to determine and engage in innovative programs and business models which can capitalize on changes occurring in the economy which can be brought about through the harnessing of technology. The survey was conducted across five primary areas; presentation/surveys of local business and service organizations, student groups and clubs, a mail-out survey card to Port Angeles utility customers, the use of "drop boxes" at key public locations throughout the community, on-site surveys at local stores, and a specialized web site. The survey portion of the project began in Septe!TIber and was completed in mid-December. Construction of the database for compiling the surveys took plac:e concurrently, with data input completed in early January. Analysis of the survey results and development of the Final Report have now been completed by DenRee. A complete copy of the report is forwarded with this memo. An excerpt from the report which outlines conclusions and recommendations contained in it are attached. DenRee Productions will make a presentation on the report followed by an opportunity for questions at Council's meeting on March 6th. 7 A COMMUNITY SURVEY OF INTERNET AND E-COMMERCE TRENDS PORT ANGELES, WA FEBRUARY 2001 8 . . . ; ~,::.~:~:;:~c~'1':i CONCLUSIONS: . -A strong majority of Port Angeles area residents are utilizing the Internet, with numbers that may be higher than the national average. -More people say they use computers at home or both at home and work instead of just at their workplace. -The majority of respondents using the Internet are under the age of 65. . However,. nearly half. of the seniors surveyed are Internet users, with particular use for e-mail and e-commerce. -Internet use is exceptionally widespread among students and younger residents between 12 and 29, indicating a strong market that is already utilizing e-commerce. -Only a quarter of the respondents said they plan to buy a new computer in the next year, reflecting the overall downturn in national PC sales during the second half of 2001. -Internet users are a majority, even among so-called "low income" residents making less than $15,000 a year. .. -Survey respondents indicate they are spending hundreds, and even thousands of dollars online. It's estimated this amounts to hundreds of thousands of dollars per year that are escaping the local economy. -People say "convenience" is the number 1 reason they choose to shop online. -Survey respondents indicated very limited participation in local online shopping opportunities, perhaps due to only a partial deployment of local e-commerce, or a need for much better marketing of existing local web sites. -Interest in local e-commerce is mixed, indicating it will take better marketing and education to convince some people to try local shopping via the Internet. -Younger age groups are more interested in local e-commerce opportunities than senior citizens who participated in the survey. -Overall, 77% of those surveyed show an interest in improved telecommunications bandwidth to support economic development, including some residents who aren't presently using the Internet or have a lower annual income. . 58 9 10 -While television remains the preferred source for news and information, in a few short years the Internet has surpassed radio, and captured nearly half of the . audience of newspapers. -Nearly three-fourths of the survey respondents indicated they were "extremely" or "somewhat" interested in improved online access to local information, products or other services. -A majority of respondents said they weren't interested, or needed more information, about the services that would be provided through a community portal. -All age groups felt that a community portal or additional services should be free, or low cost ($5 per month). . . 59 . COMMUNITY RECOMMENDATIONS: 1). The City of Port Angeles should promote and pursue the immediate and rapid deployment of widespread, affordable and proven broadband technology such as DSL or cable modems in order to promote economic growth through advanced telecommunications services and bring Port Angeles to "technological parity" with other communities already employing broadband services. 2). The City of Port Angeles should. adopt a policy and advocate local business to recognize that upwards of 79% of local consumers/customers are using the Internet. The City should also aggressively support local businesses with e-commerce initiatives to recapture "buy local" tax dollars leaving the community. 3). While the City of Port Angeles should support private sector development of Internet portals, or advanced information services, the lack of strong survey interest in a portal should prompt the city to proceed cautiously before committing to such a project at this time. 4). Phase 2 of the E-nable Community Visions Tour should be considered, focusing on further definition and identification of Internet applications and services that are needed for the design of a private, public or public/private community network. . 5). An immediate and concentrated initiative should be launched with the cooperation of local business groups like the Port Angeles Chamber of Commerce to identify and develop ways to expand the use, and marketing of e- commerce opportunities with the goal of recapturing retail dollars being spent with companies off the Olympic Peninsula. The city should also support efforts to educate all of its' citizens on how buying trends impact a sustainable local economy. 6). The City of Port Angeles should consider assisting a technology "strike team" from within the community, empowered with the ability. to analyze and evaluate Internet/telecommunications proposals that are brought forward by larger, out-of- town firms. This. panel would be comprised of private and public sector members knowledgeable about current technology and telecommunications developments, who could seek further information on proposals, educate the public and provide timely advice and assessment to city leaders. . 60 11 . . . 12 I I I I I , I I II I I I I I I I I I I I : I I I . . . . -----.--- , "~' A COMMUNITY S,URVEY , OF INTERNET AND E-COMMERCE TRENDS . . . PORT ANGELES. WA FEBRUARY 2001 I I I I I I 1 1 I I ,I I I I I I 'I :1 ;1 . ' TABLE OF CONTENTS EXECUTIVE SUMMARY pg.,~ ENABLE: REPORT PURPOSE OF SURVEY SVRVEY APPRpACH DATA & TABLES, Computer access locations Computer purchases Internet use '(overall) ,Internetuse (by age'groups) Internet use (by income group) Local on-line purchases' (overall) Interest in local e-commerce Amounts spent through "e-comm'erce Reason's for, on-line purchas.ing Interest in improved telecommunications sources of news/information, 'Interest in improved on-line access/information Interest in community "portal" ' .overall age of r~spo~dentS Overall .incomeof respondents MERCHANT APPLICATIONS CONCLUSIONS COMMUNITY RECOMMENDATIONS ADDENDUM/BACKGROUND pg.5 pg.7 pg..11 pg.11 pg.~3 pg.'16 ,pg. 1.8 pg. 22 ' pg. 24' pg;26 'pg. 28 pg. .33. pg..35 pg.40 . pg. 42 pg.45 pg.~3 pg. 55. pg.56 pg.' 58 "pg. 60 'pg. 61.' I I I I II I I I I I I I I I I I I I I EXECUTIVE SUMMARY: The E-nable Visions Tour was launched in September 2000 as a "grass roots" effort aimed at measuring the impacts of the Internet and e~commerce on the Port Angeles economy. The goal was to develop the first-ever look at these sectors; "thereby developing. a "starting point" for future business and technology studies, initiatives and projects for the years to come. Through use of a .combination of polling methods, the E-nable survey contacted nearly 2,600 residents of the Port Angeles Economic Trade -'Area between September and the end ofOecember2000.. The information was then compiled into the attached report, using a customized database authored for the study. . By mining the information gathered through a series of basic questions, the sUrvey- was able to draw some clear-cut conclusions about Internet trends in Port Angeles, and how these changes are already impacting the local economy. A Proliferation of pes The growing number of personal computers used in homes clearly showed through the E-nable survey. 39% said they were using PCs at home, with another 39% saying they accessed computers at both home and work. This is a significant finding for e-commerce and business because' it indicates a potential customer base spending many more hours with their PCs th'an just a few ye~rs ago. The study did. sh()w that most .people already have the 6Qmputers they plan on using in the immediate future, with. 76% of those polled saying they don't expect to buy a new PC in the next year.' And a majority of these PCs are being used to access the Internet. While national studies have shown. I nternet, use has,climbed to between 50% and 6,0%, 79% of the E-nable survey respondents said they are using the Internet. It's believed this higher-than-average total may stem from the larger sample used by E-nable, plus the strong indications to e-commerce and e-mail applications reflected elsewhere in the study. The survey also found that 93% of 12-to-18 year olds were, using the Internet (92% in the 18-to":29 age group), a - ~amplii1g that cOuld have also raised the overall average. These numbers remain high throughout the study, with the exception of the oldest age group, those over 65. Internet ,-!sers also remained a majority, even among "low income" respondents with less than $15,000 annual income. 1 I I ! I I II I I I i I I I I 1,1 I I I I I I I E-commerce trends: Those polled in the E-nable survey showed they are spending hundreds, and even thousands of dollars on-line. But a bulk of this money is being funneled ou't of the local economy. This is because only 13% ot'those polled indiCated they had ever: purchased anything locally on-line' (some indicated 'they had used the Internet to research prices and items before purchasing from local. merchants). More critically, '35% of the respondents said they weren't interested in'local on- line shopping, with 36% saying they "weren't sure". This' shows that local businassesneed to doa better job of developing, and then marketing their web sites: if they are going to compete effeCtively to~pture dollars that are leaving the community. "Convenience" "was given as ,the primary reason respondents were shopping on line, by 52% of those polled. A Telecommunications Future: 77% of those surveyed through E-nable showed an interest in, improved telecommunications bandwidth and advanced' serVices in order to 'promote'local economic development. The total was just slightly under the 2060,that,indicated they were using the Internet. Not all the Internet users showed support for advanced telecommunications services however. In fact, there were a surprising number of non-Internet users who still felt the community should, pursue better ba'ndwidth in the interest of economic' development " Many of the students surveyed, in the 12-to-18 and 18-to~29 categories expressed ,support for broadband, not only fortheir,personal use, but as anieans to spur economic development and employment growth. They also showed frustration with waiting for a community initiative to deploy broadband in the Port Angeles area. The "working" age groups between 30 and 65 all showed strong support for advanced ,telecommunications services. And like the students, during "on site" presentations many expressed frustration with the 'delays with the 'rollout of broadqand; Many related stori.es about how ~elatives" arid friends in other communities are already enjoying broadband and how Port Angeles needs to "keep pace", especially when if comes to spurring economic develbpment. Among the seniors surveyed, interest in advanced telecommunication services had the same roll Off as with ,the question about general Internet use, , ~'. .. '. -. ,. - .'. with the age group divided nearly in half on the issue. Support for advanced services varied little by income categories. 2 ------------- . . . . I I I I I I I I I I I I I I I I I I I Content and Dorta Is: Because content and access is the key to effective use of the Internet and. promotion of e~commerce, E:-nable focused on these questions: While the survey showed a startling growth of the . Internet . as.an accepted news and information . ., . source, it also showed that the conCept of a community "portal" needs definition and solid content if it is going to receive.broad public acceptance. Overall, among single responses given, television remained the most popular source of news and information, capturing half of the responses. Newspapers remained in second. But the most interesting comparis'on is between radio and the Internet, with the Internet edging out radio for. third place overall: This is most striking when one considers the.amount of time each service has had to. establish its' audience. Radio has been in common use for nearly 70 years. The Internet has been in common use for less than 5 years, and is 'only becoming a popular news and information medium in the last.2 years. .Yet amo"ng Port Angeles area residents, it. is already bypassing the more established service of radio asa news and information source, and has nearly halfofthe acceptance of newspapers, which have been in: Port Angeles for more thana certury. Despite these trends, the survey showed people less interested, or at least needing more information about, in improved on-line access to local information . products and other services. 52% said they were "somewhat" interested in. these offerings, with just 21.% saying they were "extremeli' interested. This interest in extended, or improved online.. access. to local information, products and services varied little among the different age groups, although it did drop off with respondents above 50 years of age. Further, the survey shows Port Angeles residents either aren't interested in a community portal, or needmore information.. before formulating an opi.nion. Roughly half .said they were not interested. It is also. possible that. some of the negative response could be tied.. to community perceptions of the Unisys proposal, although this is difficult to quantify. 570.people said theymeeded more information about a portal. Again it is believed that probably reflects somewhat on. the Unisys proposal, given the timing of the survey' which was prior to Unisys announcing its' cancellation of the. Port Angeles portal concept. Only a handful showed definite interest in a. portal. If a portal were developed, respondents made it clear that it should be free, or aCcess provided at very low cost. . 3 1--------- I I I I I I I I I I I I I I I I '1 I I A Solid Sample: The E-nable survey sought to collect the broadest sample possible, in order to provide a . cross section picture of ~hecommunity and its' use of the Internet and e-commerce. Most of those surVeyed were betwe'en the a'ges of.30 , "and 65 (28% for 30-to-49 a'nd 28%' for 5046~6.5), Jollowed by' 20% for those over 65, a 14% sample for those .between .12-and.,.18 and .8% of the respondents between 18-and-29: That's in keeping 'with the overall demographic breakdown for Clallam County. The, survey results show .8 similar br:eakdown among ..lhose listing' their income levels. The largest group of respondents (28%) reported incomes between $25k and $50k, with incomes of $50k to'$100k accounting for 25% and another 1 0% of the respondents reporting they made between $15k and '$25k. The average median inconi'e in the" county was just under $22k in 1997. One fourth of those polled preferred not to give their income levels: 4 . . . " < -, ..' . ~" ------------------------- ---- I I il I.... I I I I , I I I I I I I I I I I E-NABLE REPORT February 2001 1). PURPOSE OF THE E-NABLE VISIONS COMMUNITY SURVEY The E-nable Visions Community SLirvey is a concentrated effort to sample Internet use and trends.oofthe Port Angeles Economic Trade Area at the turn of the new century. Never before has the community launched a survey effort of this magnitude, nor specificallyan'alyzed how technology is already impacting the Port Angeles marketpla~e, espe~ially asit pertains to the economy. By using a "grass" roots" approach; E-nable seeks "to illustrate these trends, giving 'Iocal government, business and the community a "benchmark" from which to launch innovative. programs and business models to capitalize on changes wrought by technology. . History: "The Community and Tele'communications" As with many rural communities in the Northwest, Port Angeles has followed typical development patterns in telecommunications service, although the area's rugged terrain posed special challenges~ .' The area's first foray into' the "Information Age" came in the early 1880s, when the US Signal Corps built a telegraph line from Seattle to.Port Angeles, .and eventually west to Neah Bay. A cable was stretched through the trees along the beach to Tatoosh Island in order to receive weather information. However, weather turned out to be the main problem as the line was repeatedly snapped by storms. According to the loCal history book "Jimmy Come' Lately"; "CommuniCation was interrupted for long periods of time and was, very unsatisfactory.". By 1902, a better line was erected, using a Makah whaling canoe to string the cable. The first telephone system in Port Angeles was started in 1902 when a local cannery operator found his shoreline business was being repeatedly cut off from the rest of the. world by high tides. Charles Farmer strung a private line to the local telegraph office and soon.had other businessmen clamoring to connect. Farmer purchased a switchboard and started .the' Port Angeles Telephone Company, growing to more than 100 subscribers in a few months and becoming the first telephone service on the Olympic Peninsula. . System use expandeq throiighout the years, experiencing the ,growing pains of party lines, and as many as 22 individual switchboards to. handle calls by 1940. Families and businesses in Port Angeles and Sequim were forced to pay long distance fees to place calls between the two communities for many years. The "Angeles Telephone & Telegraph Company" eventually came under the control of a more famous "AT&T", followed by regional firms such as US West and today's Qwest Communications. 5 I I I I I I I I I I I I .1 I I I I I I These lines. were critical to the arrival of Internet service on the Olympic Peninsula in the early 1990s, beginning with Port Townsend-based' Olyinpus. net. Currently, 3 firms offer "dial-up" Internet service in Port Angeles, with a scattering of advanced services, but no "broadband" access at affordable prices to the general public. . Background: "PA Works! -Questions to be Answered" Prior to the arrival of regular dial up Internet access; many computer users depended upon commercial providers . such as America. On-line, Delphi. and Prodigy to send e~mail and explore the earliest versions of the World Wide Web. Connection speeds were typically in the range of 2400 baud and quite slow, even when compared with the problematic connections endured by most local Internet users at the start of 200 1'. . . Although arrival of 56k modems improved access speeds for many, Port Angeles residents, respondents to the E-nable surveys frequently related connection' speedscdnsistently . lower than the 28k rates considered the "bare minimum" for Internet use in 2001. Even with these slow speeds, there were early, but unofficial indications as 2000 began that more and rTlore. local Internet users were becoming accustomed to utilizing e-mail, chat room services and experimenting with on-line purchasing. However, no efforts had been made to gauge these trends and reach conclusions on how it could affect local business, government and the economy. .As part of its' cODsiderationof .Iocal economic development. opportunities, members of the advisory panel, "PA Worksl" adopted the E-nable Visions tour to find answers to these questions. This committee, established after the shutdown of the Rayonier pulp mill more than 3 years ago, saw the need to measure the adoption of the Internet and e-commerce and consider whether steps should 'be taken to spur local business and/or government initiatives to meet these trends. "Meeting the Challenges ofa Changing Market~' In early 2000, the City of Port Angeles was approached by the Unisys CorporatiOn of Westchester, Pennsylvania about, the possibility of naming POrt Angeles as the West Coast pilot city for its' "Community Helper"program. This program was designed to develop a local community Internet "portal" as a means of helping rural areas like Port Angeles take advantage of e-commerce programs, as well as advanced services such' as calendars and access to community information . Although Unisys named Port Angeles for a pilot study in May 2000, its' proposal did not come to fruition, With the company shelving the concept in the fall. Unisys cited its' own market studies; saying the proposal wasn't economically feasible. 6 'I I II I I I I I I I I I I I I I I I I Even prior to the first Unisys' meetings, some community leaders had been expressing many of the same concerns .about the impacts of e-commerce and discussing ways to help Port Angeles develop an Internet-based economic initiative. In addition to the loss of shopping dollars off the Peninsula, there was a growing interest in how to spur the deployment of "broadband" services to keep Port Angeles competitive in the attraction of new business, and the retention and expansion of existing bu.siness. Members of the PA Works! Committee believed E-n'able was the best way to develop local information to not only gauge the.LJnisys proposal, but ~Iso other projects and initiatives that are expected to emerge in the next few years. By having,the background information .from the E-nable survey, PA Works! believes the community, and especially the Port Angeles. City Council, will be in a much better position to evaluate these proposals as they come forth. Furthermore, the survey results would measure basic. Internet. use, a key factor. as .deCisions are made on infrastructure investment and the deployment of "broadband" services. 2). SURVEY APPROACH Developm~nt of the E-nable Visions Survey Den-Ree Productions, using input from the PA Works, developed the. E-nable Visions Survey! Committee beginning with the original concept in July 2000. The focus of the report was to develop' a "grass roots" approach; a survey that would use ari extel1sive. knowledge of . the community in order to provide a basic gauge of how Port Angeles area .residents are embracing the Internet and new technologies. Key Questions & Areas of Interest Because these local Internet trends have never been measured, it was important that the survey start' with very basic questions, such as computer ownership and Internet access. From there, additional questions focused. on attitudes and adoption of e~commerce. This incll)ded categories for spending, and reasons why people choose on line shopping. The survey also asked about interest in improved bandwidth to encourage economic development. Since contentis a key factor in. getting people to visit web sites, respondents were also asked about news and information consumption, and whether they would be interested in expanded local information services;' and how much they would be willing to ,pay for subscriptions. These results were coupled with basic demographic information such as age an.d income,. in order to measure trends across various groups. 7 I :1 .1 I I I I I I I I I I I I I :1 '1 I Survey Methods In order to make the results representative of a bro?d'sample of the community;' it was decided to use a variety of methods in the survey.. With the input of PA Works! members, the survey was conducted across 4 prim'ary areas;, a mail-out. of cards to Port Angeles utility customers, on-site surveys of local service clubs and student grou'psj the use of "drop boxes"' at key public locations such as retail outlets, banks and public buildings, and on-site surveys at local stores:' A handful of' people also utili'zed a specialized web site, alth'ough technical problems limited it~' effectiveness. All questions were rriultiplechoice, although many'respondentsincluded their. own handwritten comments on the cards, some of. which are referenced later in this 'report. ' A Sizeable Sample The authors of the survey felt it was critical to create as large, and diverse a sample as pOssible. Otherwise, the report would not truly be representative of the community- as a whole., While most surveys of ~his type, arepsually quite limited (an America On-line survey of Internet use during the .same time sampled Orily 200 people to measure national' trends), the E-nable project sought- to get a, "10% 'sample" of the population of the' greater Port Angeles Economic, Trade Area, or more than '2,000 people. In "fact, the'final'sample exceeded this goal by" a sizeable margin,. with Just less than 2,600 survey,car .' Because technology is being embraced at different rates by different age groups, the authors also sought to sample a wide range of the population: The mail-out sample included a larger percentage of respondents older than 50, while the on:"sitesurVeys included a broad cross range of ages. In order to g'auge' futuretren9s: for e-;commerce; surveys were also di~tributed at the local hi9tl school and middle schools in order to cover the 12 to 18 categories. Getting Answers "That Ot~ers Missed" (the Unisys question) ,As the E-nable survey wa's being developed, the Unisys Corpofation launched its' own marketing report (see above). However, there were marked differences in the approaches taken for' the two surveys. According to Unisys officials, a'Seattle-based consultant conducted their survey with a limited number of seleCt respondents, who were'paid to participate in the study. Although Uhisys has hever shared their final report with: the community, cOl1lpany Officials 'related that their survey showed limited interest in their portal idea, and questioned whether local Internet use was extensive enough to support the project. ' 8 I I :1 I ! I !I I I I I ,I , I 'I I I I 'I 'I I By contrast", every aspect ot., the' E-nabie' survey was" conducted: in the open, with strong encouragement ,for public participation by, anyone w~o was interested in the issue. Den~Ree Productions,' a local' firm; authored the survey.' W~th the hands-on help of the PA Works! Committee, the survey, was completed with a complete local flavor. No' one was paid to particip'ate' in the survey, or offered any other gratuity, fnorder to" maintairicomplete objectivity. ' Application of the E-nable Visions Survey The E-nable surVey was 'endorsed by the" PA Works! Committee iri July 2000, and approved by,the Po"rt Angeles City C'ouncil,in' early August 200cL The first few weeks were spent developing the survey questions and approach, with the first ~urvey cards being completed in mid-September. Mailed surveys r- The mass mailing of E~nable survey cards commenced the 1sr week of " October. Members of the PAWorks! Committee proposed this process as an effective way of sampling the general public. Participation was good, and the mail-out also helped to increa'se awareness of the survey arId community involvement during other 'portions of the survey tour. ' Community appearances One of the original concepts with E:'nable was to "tour" local serVice clubs and organizations:to spark, community dialog about the ,Internet,e-commerce a'rid technologies' ,impact on Port Angeles. Beginning in September and lasting until , mid-December, the E:'riable delegation made appearan'ces before a variety of business and fraternal groups encompassing a wide cross section of the, community. In' all cases, response' was extremely positive, with audiences showing an intense interest,inthe issue. What be~me most ,striking during the public appearances was the extremely high level of Internet use, (proven by the fin'al survey results), and also the participation in e;.c6nimerce. However; in all but one appearance, on line shopping through local merchants was virtually non~ existent. ' Many of. the questions duririg these appearances also focused 01'1 the communities' general approach to improved infrastructure ("broadband") and the growth of local technology businesses. On;.site surveys During all of the service club presentations referenced above, the E-nable team surveyed audiences and,' collected 'additional completed cards for the, sample. In addition, on-site surveys were'extended in two other areas. 9 'I ,I il I I I I I :1 I I I I I I I I 'I :1 First, in order to make sure the survey covered younger consumer groups, arrangements were made with ,the support of Port Angeles 'School District administrators to conduct targeted surveys at Port Angeles High School and among the 8th graders at Stevens and Roosevelt Middle,' Schools: By' including several classes of high school se~iors, as well a~ 8th graders, the' survey de'velopedinformation that shows critical tr(3nds that could ha've a 'great impact on the local economy in the future. Additional survey events were held at Peninsula College to get the same input from older students. The following data provides a more detailed snapshot of how these students . are embracing technology. . , Second, the E-nable team also conducted several survey "events" at'local stores. ThE3se surveys were conducted i,n mid-to-Iate November. Pa,rtiCipation was mixed, primarily because so many of the contacts said they had already took part in the survey. However, the. surVey confirmed the trends already exhibited in the rest of the sample. . Finally, throughout O'ctober and November, E':'nable survey boxes were placed at more than a dozen ,different loeations. These included 'local . retail, outlets, all local branches of First Federal Savings and Loan and public buildings such' as Port Angeles City Hall ahd the Port Angeles branch of the North Olympic Library System, . S~eking the "Demographic Spread~' As related above, all of these, methods were designed to create a wide. sample, involving all ages and income levels, people who were, avid, regular computer users and residents who haven't embraced the' Internet: This is reflected in the range of responses, which provide a datab~se., that can be queried from a variety of points. Completion of the Survey , . . . . . ' . The survey portion of the E-nable project was launched in mid~September and was completed by mid-December of 2000. Construction of .the database. took place concurrently, with input of the'data starting in December. Final input of survey responses was completed during the 1 st week in January 2001." As referenCed before, ~Iightly less than 2,600. survey, cards .were completed (2,599), representing. more than the "to%" sample the survey authors had targeted for the report. While.additional sampling could always be continued; the trends are so clear-cut that the, authors feel the results are readily apparent, and community efforts from this point should focus instead on how"to respond to these impacts. 10 I :1 I I I I I !I I 'I I I I I I I I I I 3).DATAlTABLES E-NABLE FINAL QUERIES. 1). Computer access'location (overall) One of the primary questions' E-nablewanted' to answer is wherf:! people, are using computers, and whether they. are accessing the Internet. This location ofcdmputers can be. used to estimate how Port Angeles residents are usirigtheir computers, the penetration 'into the homes for personal use and gives a general idea of how many hours 'people are spending with computers daily." Computer Access Locations 1200 1000 800 6'00 .400 200 o No response both home work neither Computer Access Locations ..., neither No, response 1% 15% both 39% home 39% 11 ! .., 'I I I I I I I I I I I I I I I 1 I I ,I The vast majority of E:nable respondents said' that they are using computers, with most indicating'they"were using their systems eitlier at. home, or a combination of home and work. Only 6% said they only used computers. at work, while just 15% said they weren't using, computers at all. (The number of ~' people unwilling to admit they are "surfing" the Internet at work could, ~ave ' 'impacted the relatively low "work" number). A ha'ndful of the' respondents indicated they were using cOIJ1Puters at public access locations like, the'Iibrary,' or "borrowing" time from friends and family, in some.cases until they could purchase . a computer of their own." The numbers reflect the sharp growth in personal computer use that has developed over the past few years and the increasing amount of time (hours) people ?lrespencjing with their computers each day. Although not specified in this survey, the results could also indicate the use of computers in more home based businesses. . 2):' Computer access location (ages18-29 and 30-49) , " The general trends for computer access locations held throughout a check of.the younger, working demographics. Computer Locations ( ages 18:29) 82 85 100 80 60 40 20 o both home work neither In the 18-to-29 age group, the locations where respondents are access, their computers was evenly split between "home", or a combination of "home" and the workplace; The next age group, ages' 30-to-49, showed a stronger indication to using computers both at work and. home. Perhaps what is most interesting is the small number of respondents who said they were" only accessing computers at work, showing again the increasing trend toward personal computer ownership. 12 I I I I I I I I -I I I I I I I I I I I 3). Computer purchases in. the next year (overall) Next, E--nable wanted to find out how many people are planning to purchase c?mputers in the near future. Compu~er Purchases in the Next Year (overall) 1000 IBYESI .NO 2000 1 Computer Purchases, in the Next Year (overall) 24% 76. I BYES I .NO E-nable found that few of:the survey respondents were in the marketfor a new computer. In fact, only one-fourth said they planned to purchase a machine in -the next year. Given the strong numbers of people who indicated'they are using a computer (above), and are .connected to the Internet (see below), this may show that' many residents already have relatively new pes (purchased in the last 12-to-18 months) and don't foresee, tne need to upgrade in. the' near future. This issue should be defined further, as it could also provide key information on.. people's demands for broadband level applications, and the willingness to 'purchase new hard~are to use advanced services. 13 I' ,I I I I I I I I I I I I I I I I I I I 4). Computer purchases in the next year (18-29, 30-49-, 50-65, over 65) The study next looked into computer purchases by age group. Compu~er Purch,ases in the Next Year ages (18-29) 200 100 o I-YES I .NO t Computer PU,rchases in the Next Year.(ages 18-29) ..11.....2% 68% I 8 YES I .NO 14 I I I I I I I I I I I I I I I I I I I Computer PU,rchases, in the N,ext Year (ages 30-49) 600 400 200 o 1 IIIYES! .NO Computer Purchases' in the Next Year' (ages 30-49) .,9% 710 !IIVES..I .NO Computer Purchases in the Next Year (ages 50-65) 600 400 200 o !IIVES I .NO 1 15 I I II I I I I I I I I I I I I I I I I Computer PLlrchase~ in the N.ext Year. (ages 50-65) 23% n. I~YESI .NO .. Computer Purchases in the Next Year. (ages over 65) 500 IBYESI .NO o 1 Although most of the younger age groups would show strong use of the Internet throughout the study, few indicated they planned to purchase.' new computer hardware in the next year. 5). How many are using the Internet (overall) At the outset of the E-nable Community Survey, the PA Works! .Committee and the authors wanted key information as to local use of the Internet. Never before. had. this information been gathered locally, and it. forms the heart of not only the entire survey, but also how the community should be responding to thesechanges~ Previously, only closely guarded information from the local Internet service providers could have given any indication of Internet penetration. And this information was not shared 'openly because of the competitive 'nature of the ISP business. While the authors had estimates and speculation, the actual percentage of local Internet use actually turned out to be quite astounding. 16 ~ I I i II I il I I I I I I I I I I I I I I I Internet Usage (overall) 3000 2000 Internet Usage (overall) 21% .7~~ The overall response shows that an overWhelming majority of the . population are accessing and using the Internet, or Internet-related services. such as e-mail. 79% of Port Angeles area residents surveyed through E~nable said they are using the Internet. This is actually considerably higher than the .most recent national surveys. (In August of 2000, Nielsen Netratings reported the number of U.S. househoids had' passed 50%, 'representing 144 million households. America On-line reported a ,similar figure at about the same time).. The authors believe the higher numbers in the Port Angeles sample could stem from a survey that incorporated a. broader range of age groups' and indications of a strong trend to applications such as e-mail and on-line shopping because of the area's rural location. These results should be defined with more. specific questions relating to actual applications and use in a follow up survey. But the results clearly show that Port Angeles is keeping pace, or even exceeding the hational"adoption" of the Internet as a way of life. 17 .'r I I I I I I I I I I I I I I I I I I I 6). How many_are using the Internet (by all age groups) As the survey results on Internet use are broken down by age groups, some interesting figures beeome apparent, e'specially when it pertains to future economic and social trends for the Port Arige.leseconomy and comrTlUnity as a'" whole. Internet Usage (ages 12-18) 200 IBYES] .NO 400 o 1 Internet Usage (ages 12-18) I.BYESI .NO The youngest demographic in the survey, the 12-to';18 year aids showed a sharp trend to Internet use,. with, 93% indicating they were accessing, the 'Net. During verbal contacts, many related that they not only owned their own computers, but.also had been using them for buying products on-line. From an e- commerce standpoint, this underscores the need for a local initiative to capture these consumers and their dollars, as they are already becoming well acquainted with the Internet and the. services available from non-local sources. 18 I ,I I i I I I I I I I I I I I I I I I I I Internet Usage (ag~s 18-29) 200 100 o 1 IBYESI .NO Internte Usage (ages 18-29) 8% . "" o IBYESI .NO The results of Internet use in the youngest age group continued to be reflected in the next demographic, respondents from 18-to-29 years of age. As with their younger counterparts, these residents showed a strong adoption of the Internet, providing a clear indicator that they will continue to be 'Net users a"nd- shoppers during most of their lifetimes. . - Internet Usage (ages 30-49) 1000 500 o 1. I BYES I .NO 19 I I I I I I I I I I I I I I I I I I I Internet Usage (ages 30-49) 11% .... .. . ' o I-YES I .NO One of the largest sample groups in the surVey, the'30-to-49 year old respondents also showed an overwlJelming amount of Internet use. Although Internet use falls off at the lower income levels (see below), 89% of the overall group has already made the Internet a regularpart of their lives~' Internet U~age (ag~s 50-65) 598 600 400 200 o I-YES I .NO 1 Internet Usage (ages 50-65) 18% . I-YES I .NO 82% 20 I I I I I II II !I I I I I I I I I I I I Overall, as the age of the sample group increased, the amount of Internet use began to fall off. However, the 50-to-65 demographic, which includes the oldest of the "baby boomers" and many business' owners and operators with higher income levels, still showed a strong majority using the Internet. In fact, throughout'the surVey this group showed a' surprising adoption cif. these new technologies, and offered some of the most supportive com'riients for the E-nable initiative. Internet Usage (ages over 65) 280 260 240 220 I-YES I .NO 1 As noted above, the amount of Internet use drops sharply among the older respondents. This is the only category where we found more people saying. they weren't using the Internet,' although it' was by fewer than 30 surveys. With respondents above age 65, they either indicated they had no interest in the Internet, or were enjoying its' use. This demographic was clearly split on the question of Internet use. Verbally, these older Internet users showed a lot of interest in e-mail. to keep in touch with family and friends, or specialized transactions such as. investing and stock trading. 21 . ' ----.-.- 'I I I I I I I I I I I I I I I I I I I ___ __ ______......______ ________________________________________________n____ . . , ' . , , . 7). How many are using the Internet (by income group) E-mibJe also wanted" to find out whether income level effected people's adoption of the: Intemetand Internet-related s~rvices. The. obJective here was to find out whether the Internet was becoming a "priority utility" in much the same fashion as telephones 'early in the 20th century; . Internet Usage/Income 700 600 500 400 300 200 100 o YES NO YES NO YES NO YES NO YES NO YES NO nla nla <15k <15k 15- 15- 25- 25- 50.,. 50- > > 25k 25k 50k 50k 100k100k100k100k. Internet Usage (no response on income) ..I 25~ --% IBYESI .NO ..:1 Internet Usage (income <$15 K) 33~.' · ...' 7% IBYESI .NO 22 I I I I I I I I I I I I I I I I I I I Internet Usage (income $15-25k) 310A., . 69% Internet Usage (income $25-50k) 21% .% Internet Usage (income $50-100k) 10% . .90% Internet Usage.(income over 100k) 17% . .83% IBVESI .NO IBVESI .NO IBVESI .NO, . IIIVES I .NO 23 I I II I I I I I I I I I I I I I I I I There are two interesting points from this database query. First is that Internet use is quite high, even among lower income respondents (less than $15,000 a year annual income), registering 67%. Secondly, the study shows the increase in Internet use does correspond with 'an increase in income. Local Internet use among residents reporting more than $50k per year ranged between 80 and 90%. " '" 8). Number of local on-line. purchases (ove,rall response) Going into the E-nable study, members of the PA Works! Committee were already aware of the fairly limited application of local e-commerce web sites. However, part of the objective of the study was to coilect speCific information to show any local e-commerce trends. . . Local Purchases Online 330 ,IBYESI .NO , 2269 Local Purchases Ohline 13% .IEYESI .NO 87% 24 I I I I I ,I I I I I I I I Ii I I I I I As expected, the survey shows a disappointing adoption of 'local e- commerce opportunities. Nearly aiL, of 'the respondents said they had never purchased anything local on-line, although a handful .indicated verbally that they had used the Internet- to 'research products (such as' automobiles), before completing the purchase locally in a traditional fashion. During, our "on, site" presentations and informal polling, we found dozens of people who .'indicated they had' shopped online, while only 2" people said. they had' bought something locally. One of those people said he had actually researched buying a car online but completed the purchase at a local dealership, making ita "qualified" - local online purchase. It's believed these results reflect several factors: A). The liniitednumber,oflocal businesses who are using the Internet for other than static, "brochure" web sites than generate limited traffic and offer no "purchase" opportunities. ' B). Erratic, or limited marketing of more advanced local web sites that are attempting e-commerce after a fashion. C)~Consumer attitudes where customers haven't been educated about the convenience of using the Internet instead of "driving to the store". D). Some confusion over the definition of "local" online shopping, especially when compared against limited local e-commerce opportunities. ' 25 I :1 .1 I I I I I I I I I I I I I I '1 I 9). Interest in local shopping (overall response) Realizing that a vast majority of Port Angeles businesses have not utilized the Internet beyond "brochure web sites"; we also wanted to gauge the respondents' interest in having more locat, on-line sho'pping opportunities.. Interest in LOCAL Online Shopping 24 954 .. no response .no o not sure Dyes Interest in LOCAL Online Shopping 1% 36% . 111 no response .no G not sure Dyes The results show a nearly three-way split on the question, also refleCting Factor #3 listed above. ManY.of the respondents we talked ,with during the survey and Visions Tour simply wondered why it would be more convenient to shop "on- line" when they could 'just visit the store in person. Others, who said they were more accustomed to regular o~-line shppping, said they would welcome the 26 I I I I. I I I I I I I I I I I I I I I opportunity to shop locally via the I ntern'et , espeCially if it was more convenient and would, allow them to browse a better, selection, determining whether a product was in stock before venturing to the store or business. , This category alorie shows' it will take a concerted marketing a'nd education effort to convince the "not sure" segment to participate in local, ' e-commerce. ' 10). Interest in local shopping (12-18, 18-29, over 65) The study also measured local shopping interest by age, looking' specifically.at both ends of the demographic spectrum. Interest in Online Purchasing (ages12~18) 0% . no response 28%~8% .no ~~, o not sure {"", 44% myes Interest in Online Purchasing (ages18-29) 0% II no response 36%~9% ~. .no .~ ;.} Q not sure 35% CI yes No 12-18 response 1 12-18 No 101 12-18 not sure 157 12-18 Yes 101 No 18-29 response 1 18-29 No 60 18-29 not sure 73' 18-29 Yes 76 With both of the younger groups (12-to-18, and 18-to-29), the spread of interest in local on-line shopping remained consistent with the overall numbers, Le. roughly a three way split between "yes", lind' and "not sure". ' 27 I I ,I I" .1 1 1 1 I :1 I ,I I I I 1 1 I I , , , , ' ' Interest in Online'Purchasing (ages over 65) 2% 11 no response . ~,~'l , .no , 37% ~52% o not sure ri] yes , , over 65, over 65 over 65 over 65 no response ' 11 , no 265 not' sure , 189 yes 46 ,However, the results for the over 65 demographic show a greater disinterest in loCal on-line shop'ping. It's likely this reflects the overall lower use of the Internet in this age, group, as well as the m~:>re' traditional attitudes to,ward visiting'local stores and 'businesses "ih person". This conclusion was reflected in' . . . . , . . . . . .. . . the comments we, received during presentations to groups with a 'higher percentage of seniors. , , , 11). Amounts spent through on:'line purchasing (overall) E-nable surveyed Port Angeles residents to determine how much they were expecting'to spend online, using the remainder of 2000 as a benchmark, a time slice of roughly 3 months for a majority of the respondents. ,Howevef, we believe some of those taking the surVey might have considered a figure for an , entire year o(online shopping~Regardless, the results do give a:goodindication of the amount of local dollars being spent through the Internet. Online Purchases (Overall) 1900 1 88 ~88 208 Q) 0 0 0 (/) 0 0 0 0 c: ~ LO 0 0 W I ...... c: 0.. V 0 I (/) 0 0 ~ ...... 0 W LO W 1117 o o o ...... w ^ "0 '- ~ Q) Q) as c: > ..c. .- Q)(,)c c: L.. 0 ::J 0.. 28 I I I I I I I I I I I I I I I I I I I Overall, most of the respbndents said they were spending between $100 and $500 online, followed by a 'large segment.expecting to spend less than '$~ 00. A little less than half of the respondents said they had never. purchased ~mline, some expressing concerns over privacy, or even the process of completing an a-' commerce transaction during the "on site" presentations. Still" there weresom~ participants who suggested the' su'ivey should have included a category of purchases' of ~'greater than $1 0, ()OO" , saying it would. have reflected ,their purchases of computers, cars, home mortgages and other "large ticket" items. 12). Amounts spent through on-line purchasing (18-29, 30-49, 50-65 & over 65) , " A breakdown of online purchasing by the key 'age groups showed some interesting' ,trends and attitudes toward e-commerce, with, a greater aCceptance among younger consumers. Online Purchases (ages'18-29) , . no response 80 60 40 20 o 1 .<$100 ~$100-500 ~ $500-1 000 , .>$1000 , Iil never purchas ed online Online Purchases (ages 18-29 . no response " % . <$1 00 0$100-500 G $500-1 000 .>$1000 Ii] never purchased online 29 I I I II I I I I .1 :1 I I I .1 I I I I .1 .1 Online purchases (ages 30-49) II no response .. . .. ". . <$100 300 200 100 o 1. 0$100-500 0$500-1000 .>$1000 rm ne-.er purchased . online Online purchases (ages 30-49) !II no response. . 3% . . .<$100 Yo 0$100-500 0$500-1000 .>$1000 I!J ne-.er purchased . . online Online Purchases (ages 50-65). III no response 300 .<$100.. 250 200 El $100-500 150 100 III $500-1 000 50 .>$1000 0 1 (jJ never purchased online 30 I 'I :1 I I I I I 'I I ,I I I I I I I I I Online Purchases (ages ,over 65 .,no response 400 . ~$1 00 '300 ~ $1 00-506 200 ~$500-1 000 100 . :;>$1000 0 iii never purchased 1 online Online Purchases (ages over 65 , . no response . <$100 5l $100-500 7 " ~. never purchased online . 31 ". '- P".';"'?'.'i."~.'"'':;','.''':.,':'''~>',h''' '1 I I I I I I I I I I I I I I I I I I 13). Percentage of respondents pending >$500 on-line (overall) The survey also looked specifically at. the respondents' spending in the over $500 category, which represents an e~commerce "sweet spot" for online retailers. . . Online Purchases (Overall) 1200 1988 ~88 208 1117 ~~::~~~~;'~,"~i7ELC':2::=~::=:~;.=:~~r::.~r:~f4::~::::!~4:":] fJ~J~:::L=~#:;;~~iif:~~~:.=::::::~--::.-:r::=R r:-3 ~r=:T~~,~~ijTII::=-~:~:Z:::::'::::{;::::~==:J [:2 fll1~ti~K'::::;=~s:::J .ti::~=~~:::~cr=~:~] IE~ Ifi~:::~Yit:::;:~";] r:=~;zr' 'w'~~:"~~:f::-~J\:}$~~~~ iTh~:J lfu~r-~~~:::'~~:ll_ 'w~:. '~~u:::;:~.~~.~ ~~2~J~~::1 . ~_ '~1 0) m c 00 c a. .m 0) ~ o o T""" fh- V o o L() I o o , T""" fh- o o o T""" I o o L() fh- o o o T""" fh- ^ "0 ~ ~ 0) .0) a:i C >.r::. .- O)oC: c: ~ 0, :J . a. However, while the overall sample showed some strength in the over $500 category, the largest ~umber of :Iocal e-commerce shoppers were spending somewhat less than that (under $500).'Again, as noted earlier, these results could 'have, beem impacted somewhat by the wording of the question (balance of the year. versus annual spending). Even so, the results show that local consumers are spending considerable sums' with online retailers.and services. These shoppers represent an estimated $363,975 dollars worth of. busi.ness that was largely spent outside Pci"rt Angeles. .' (481 x $75 average= $36,075+ 608 x $300 average = $182,400 + 172 x $750 average = 129,000 + 107x $1500 average = $160,500 = 363,975 total). Of the 1,368 shoppers in the survey, only 330 said they had bought locally through the Internet. The previous question did. not specify how much had 'been spent during those.local transactions, but it seems unlikely that those consumers had purchased exclusively from local online merchants. So the previous formula showing out-of-:town spending would largely h?ld true. 32 I I I I I I I I I I I I I I I I I I I 14). Main reason for on-line purchasing (overall response) As part of the E-"nable survey, the respondents were also asked for the primary reasons they used online shopping (versus "traditional" shopping). REASON FOR ONLINE SHOPPING Better prices 388 Convenience 842 Greater selection 399 Reason for Online Shopping III better prices . comenience G greater selection 52% Convenience emerged as the clear reason for people deciding to shop on line, with the 'remainder of the responses split between better prices arid greater selection. The results on better prices may indicate that local merc~ants have an improved chance of competing when it comes to this key area, Le. lower prices, frequently not available to smaller volume businesses, are not the overriding reason for online purchases. It's, also interesting to note that some of the respondents who earlier said that they hadn't shopped online responded to this question, indicting that there are perceptions of benefits from e-commerce, evell by those who haven't experience the process first hand. .'.' 33 I I I : I I I I I I I I I I I I I I I I 15). Main reason for on-line purchasing (combined: responses) Some of the respondents also listed .more than one benefit from online shopping. 1000 800 600 400 200 o Reason for Online Shopping (with combo answers) 1 . no response . all o better prices o better prices/greater selection . convenience ill ~nveniel1ce/better prices . convenien~/greater selection rEi greater selection .' . never shopped online Here again, convenience had the edge in the combined responses with 35. of those surveyed saying they were looking for all three attributes in. online . shopping, Le. convenience, better priCes and greater selection. . . . . . . ------- --.- 34 I I .1 I I I I I I I I I I I I I I I I I I 16). Interest in tel-com (ove ra Ii) With the potential for expansion of 'broad band services to the Port.Angeles area, E-nable: sought to at least get some general indications of public interest in these offerings. As it.. turn'ed' out, Overall . demand' for advanced telecommunications services was much higher than anticipated. Improved Bandwidth Interest 2500 2000 1500 1000 500 o YES NO . . Improved Bandwidth Interest 23.0",' ',' .~ % IBYEsl .NO . . Overall, nearly all of those responding to the survey indicated interest. in improved bandwidth and advanced telecommunications services. The total was. just slightly under the 2060 that indicated they were using the Internet. Not all the Internet users showed support for advanced telecommunicati'ons serVices however., In faqt, there 't"ere a s.urprising number, of hon-Internet users who still felt'the community should pursue better bandwidth in the interest of economic development. 35 I I I I I I I I I I I I I I I I I I I 17). Interest in tel-com (by all age groups) As one might expect, the demographic breakdown on the advanced telecommunications question closely mirrored the way various' age groups were already using the Internet. . Improved Bandwidth Interest (ages 12-18) 400 300 200 100 o if'?T"'~;~J:;;~;~~~.~;';~;~ ~1"""""I;.O.I.iJl.__~ E;;'''l':''(~~l I~";'"~~'~~~~~ ~~ ~---.c~~_,-,_~.u~ l\~~;:.t~ ~. .~~~ I"~""" ,~.. -~. -~"",~'~~"~~~~--.--.--~ ~i'~-="-":~ '" ~_ [t:g=-d___.d:..i~':~~J~---~~~ YES NO Improved Bandwidth Interest (ages 12-18) 14% -~% !IIYES I .NO Improved Bandwidth Interest . (ages 18-29) 182 200 150 100 50 o I[]~""""""""""""'-'- '''''e'-~'~_~-'',~ ~:t;~:.~ =/;;r. \":: ~ .~. ..::::~:~;~~'i~:'~N ,,' .' ~ ~";:'..,;w:; " ';.- - ~~~ 1M' , , . t ~';.'>"" ~ ::; "1' ~,j~ ;~ ., t "';1' i' l v~\. ~"" "J(;'~ ~~ t ~ 'I ~~~ YES NO 36 I I I I I I I II II I I I I I I I I I II Imp'roved Bandwidth Interest (ages 3049) 800 600 400 200 o ~~- ~':"l:71 ['~_.-'~' --:~~~ ~ tsz~~ n~;::;,:J, .~--.-.~-~-=--~~ ~, ,._~- -~ ~ YES NO Improved Bandwidth Interest (ag~s 3049) 14%, II 86% IBYESI .NO. Improved Bandwidth Interest (ages 50-65) 600 400 200 o 563' ~",,~,!?(...--~..~-:: '~1;..!p-~raI.""'~~~~"t'~ r-". ,,;.: , '!ioo -1\ ~ I ""'~' ~" '., j I '..,. , . , ,,\ ,,~> \,:,.?,_~\~t'{~>:o,~ ~ ,t~~~~ ~' ~~I . ",+", ',', .....:'i.-'t ~ ",", . L ~ ~, 'rY';;;.~~0'7?TI7;Y=="'=--'1;'??!i~ ~~ __ _ _'~ f~)i.U~1 Improved Bandwidth Interest (ages 50-65) 22% .8% YES NO IBVESI .NO 37 I I I I I I I I I I I I I I I I I I I Improved B~ndwidth Interest (ages over 65) 280 260 240 220 . r---'-.r:>f4~il'-~~---""" "'.-.,'?J/'~' ....-,....$".~~~ ~'",i:,\,:,."~ ' , p , ,'.' , 3', " ~ ~-~~ [~ ~~ EfI.~ " .Jr~l~lti~rZJ ~- ~~~ YES NO Improved Bandwidth Interest (ages over 65) 47%'11I53% I-YESI .NO In the younger age groups, there was stronger support for advanced telecommunications services. Verbally, mcmy of the students surveyed in the12,~ to-18 and 18-to-29 categories expressed support for broadband not only for their personal use, but as a means to spur economic development and employment growth. They. also showed frustration with waiting for a community initiative to deploy broadband in the Port Angeles area. ". , The. "working" age groups between 30 and 65. all showed strong support, for advanced telecommunications services. And like the students, during "on site" presentations many expressed frustration with the delays with the . rollout of broadband. Many related stories about how relatives and friends in other communities are already enjoying broadband and how Port Angeles needs to "keep 'pace:', especially when it comes to spurring economic development. Among the seniors surveyed, interest in advanced telecommunication services had the same roll off as with the question about general Internet use, with the age group divided nearly in halfon the issue. 38 I I .1 I II I I I I I I I I I I I I I I 18). Interest in tel-com (by income) Interest in advanced telecommunications' was also measured against- income categories, to see if household. income had any bearing on people's acceptance of broadband deployment. Q) .ll<: .ll<: .ll<: '.ll<: ~ ,(/) 1.0 .' 1.0 0 .ll<:o 0 0 c ..- N 10 550 0 0 ~ I I ..- C .ll<: . .ll<: ~ ..- a. v 1.0 10 ~ (/) .:~ N ^ ~ ~ ~ YES YES YES YES YES YES 250 200. 150 100 50 o .. E~~=-===::"=_::-:Jl~~~ D ~~"tZ~~ (] ~ ~~-===-w llil ~"~=-:::::-'__TI EZ"II ~ ~~r~~~""""'w Q) .ll<: .ll<: .ll<: .:.l:.ll<: .ll<: (/) 10 1.0 0 00 0 o c ..- C';J 1.0 100 0 ~ I ..- c 8- v .ll<: .ll<: ~ ..- ~ (/) 1.0 10 ^ ~ ..- N ~ ~ NO NO NO NO NO NO There are ac~ually two respon~e.categ9ries when :the database i~ queried on this question. First, are those who didn't give their income range, with more than half saying they supported advanced telecommunications services. Second, is the response of those who did specify their income, (together these categories total the overall response to the question). H6wever~ support .for advanced services varied little by income categories, with all brackets registering be~een 73% and 83% support. . . ... . Income <$1Sk 73% .$1S-2Sk 78% $2S-S0k 77% $SO-100k 83% >$100k 80% 39 I I I i I : I I I I I I I :1 I I I 1 I I .1 19). Sources of news and information (overall percentages) Because cOntent is key to the success of any effort to establish a'locaJ. Internet portal: E-nable .also measured: local residents' habits when it comes to acquiring news and other information. This is also' a way of measuring' people's adoption of the relatively new technology' of the Internet, versus established services such as newspaper, television .and radio, which have become traditional over many 'decades. It alsostiows an early indication of how local e-commerce sites might consider existing media when marketing their services. The responses inclu'de both single use of each media, as well as combined use' as a' sourCe of news.and information. ' . News and Information Sources . . . ' internet. newspapers . . 12% . 27% _newspapers .radiO . radio EI television television 11 % UI internet 50% , , Overall, among single :responses given, television remained the most popular so'urce of news and information, 'capturing half of the responses~ Ne~sp'apem~ remained in second. But the m~st interesting comparison: is between radio and the .Internet" with the. Internet edging .out radio.for third place . overall: This is most striking when one considers the amouht oHime each service has had to establish its' audience. Radio has been in .common use for nearly 70 years. The 'I nternet has" been in" common use for'less than 5 years, and is' only' becoming a popular news and information medium in the last 2 ,years; Yet among Port Angeles area residents; it is already bypassing the more establfshed service of radio as'a news and information source, and has nearly.half of the acceptance. of newspapers, which have been in Port Angeles for more than a century. 40 .;.,. ....~.:.,.,..,._.::;~. _____.u_______u_.._______.._ I I I I I I 1 1 I 'I 1 I I :1 I 1 I 1 :1 News and Information Sources 7% . all o newspaper/internet . newspaper/radio/internet" . newspaper/television . newspapers o radio/internet . radio/television/internet . television/internet 17% ~ internet, [3 newspaperlradio iJ newspaper/radio/television Ii1 newspaper/television/interne . radio . radio/television . television The second comparison used both single and combined responses but still" shows the same general trend. Television remained on top, followed "by a" combination of television and newspaper" newspapers by, themselves; the . .. . ... -. .. . . . Internet alone, and finally radio. The combined responses do show a number of cases where people are using the Internet in conjunction with the existing media to obtain their news and information every day. Again, this shows the strength of using a combination of media outlets to promote future local' e-commerceand Internet services. 41 I I I I I I I I I I I I I I I I I I I 20). Interest in.'improved on~line access (overall percentages) With the prospect of the community.attracting firms offering an Internet portal, or advanced information serViCes, E-nableasked Port Angeles resid~rits .for.their general views on these products. Improve Online Access Interest (OVE.RALL) . IE] no . extremely 21% 27%_ .somewhat 52% extremely 534 somewhat 1298 no 689 , Not surprisingly, those who h?d no interest, or were very inter.e~ted wer~ split almost evenly. However, those expressing "some interest'" in improved online information and services. captured a majority., It's beliE;wed mu~h: of th~ response reflects the demand for. improved. (faster) Internet access,. t?ased upon the many verbal comments thatwere received during .the on site .presentations and surveys. Port Angeles area residents want faster, affordable Internet connections and they want them today. However, the "somewhat" response shows that people. want more informatior;1 and explanatiol1 before throwing, their complete support behind these services, especially concepts like an. Internet portal. 42 I I I I I I I I I I .1 I I I I I I I I 21). Interest in improved.an-line access (12-18, 18-29, 30-49, 50-65 and over 65) The 'database was also queried to see if this interest in improved online access and services varied according to the various age groups. . Improved Online.Access Interest (ages 12-1~) ,lDno . extremely 15% . 21% -- . . somewhat 64% Improved On!ine Acc~sslnterest (ages 18-29) o no 14% .e~tremely _.29% . somewhat . 57% . . . Improved Online Access Interest , (ages 3,0-49) o no, . extremely 18% -~~ . somewhat 52% 43 .,""X..-" I I :1 I I I I I I I .1 I I I I I I I I Improved Online Access Interest . . . . . . (ages 50-65) . extremely [] no. . 20% .28%_ . somewhat 52% Improved Online Access Interest (ages over 65) iii extremely 8% 8 no 53% This interest in extended, or improved online access to local information, products and services varied little among the different age groups. There' was' slightly stronger interest with the .18-to-:-49.. year olds;falling : off with those between 50 and 65 years of age. The interest drops significantly among those over 65, with clear responses showing no interest in these services. 44 I I I I I I I I I I I I I I" I I I I I 22). interest In a community portal (overall) As explained elsewhere in the'report, when the E-nable sUNey was first. developed" the Unisys corporation was still s~udying Port Angeles ,as a possibl~ city for its'" Com'muhity Helper Internet portal" program. However, regardless of this sp~cific. proposal, the study authors and the PA Works! Committee felt it was, important to gauge the public's, interest ,in a portal, thereby providing a general estimation of this concept to measure future proposals that are expeCted to surface. COMMUNITY PORTAL INTEREST 1500 . need more information .no 100 l/) ~ ~ 1000 E ~ = = 500 z~ . yes , o IntereSt ResponSe o no response This'question clearly shows that Port Angeles area residents either aren't interested in a community portal, or need more information before f9rmulati~g an opinion. A strong majority said they were not'interested. It is also' possiblE3 that some of the negative: response could be, tied to' community perceptions of the Unisys proposal, although this is, difficult to quantify. 570 people said they needed more information about a portal. Again it is believed that probably refleCts' somewhat on:the Unisys proposal, given the timing of the sUNey which was. prior . ,. ... t . " toUnisys announcing its' cancellation of the Port Angeles portal concept. Only a handful showed definite interest in a portal. ' I ..I . '. I i 1 45 I I I I I I I I I .1 I I I I I I I I I . 23). Willing to pay for a community portal (overall) .' Port Angeles residents were also asked what they would be willing to pay m?nthly for access to a community portal or other services. Willing to Pay for. a Community Portal 2000 1500 1000 500 o r;\Z;:=J2?25Z;::.2.i:i:ill2U.iliZl.2.112hs;]iiZ:::-='~ E"""'~'~'.K~_-~~7] . 'r;"] [~____~,,_..::..:...-"~_~:__.~.._~;__"'<~_:....:.....~~ .L'~ ~"J;~~~-->"_..~--~- rn lk:'L."i'_'f'f.~_,~L"~[!~ .ticl ~,~.:;:""'-.;"'-""'-"-~~-=~ E"'7'1 ~""~_._~n_:~<_::.-:..-~.L;"''''_~-''~' ~:~_",___~:~~~:";;'JJ~ 'lL:..J Q) tJl o c: c:8. tJl ~ ..... Q)s::. 0.- c: o 0 ~E ..... Q)s::. 0.- c: o 0 ~E .....s::. Q)- o.c: U) 0 ~E Q) .0 "0 Q) - Q) g.l= s::. tJl Willing to Pay for a Community Portal 13,% 9% III no response, . $5 per month 0$10 per month m $20 per month . should be free There are clear indications to this question; with more than.1500. respondents saying a portal st)ould be "free". A monthly fee of $5 was the next choice, placing a distant second in the category. 46 .' I . '..'_"-"'-,'-.'<-',;',, I I I I ,I I I I I I I I I I I I I I I 'I I 24). Willing to pay for a.comolUnity portal (price, versus age) The study compared the results 'of people's willingness to pay for an Internet portal' or additional services versus ~heir age to see '.if the overall demographic trends' toward Internet use were" consiste'nt when 'compared against specialized services. . , Willing to pay.for a Co~munity Portal , (ages 12-18) 250.j 200 150 100 50 o 223 14 69 .. I I 33 I 21 - no response $5 per month $10 per $20 per should be month, . month free , Willing to pay for a Community Portal (ages 12-18) 4% . no respons~ .9% . $5 per month '~~ 0$10 per month 62% " 90 B $20 per month , 6% . should be free . . . . . , . . . . . ,.. . Willing to pay.for a Co~munityPortal " (ages 18-29) 150 ] 100 50,. 11 o - no response 142 27 Iiii1 $5 per month 16 l , 14. Ii'aIIiilliI m= $10 per . $20 per' should be month ,month free 47 I I , . I II I I I I I I I I I I I I I I :1 . Willing .~o :.pay for a 'Corn,munity Portal (ages 18-29) 5% . &I no response . $5 per month 0$10 per month 0$20 per month . should be free Willing to p~yfor a c:ommur:'ityPo~1 (ages 30-49) 426 ~gg.1 200 75 10g _ 77 41 l 131 . ........,., no . $5 per $10 per $20 per should be response month.' month, month free Willing to:pay fC?r aCorn,munity Portal (ages 30-49) 10% iii no response .17% . $5 per month 58% :\.,10% 0$10 per month II] $20 per month 5% . should be free Willing to p.~y~for a Community'Portal (ages 50-65) 412 ~gg .1 200 93 112 10g l1li. no $5 per response month.' 30 l 79 -. $10 per month, ........... $20 per should be month free' I ' 48 .. .;.-,...,- I I I I I I I I I I I I I I I I I I I Willing '0 pay for a Co~munity Portal (ages 50-65) 13% . no response .15% .$5 permonth 57% i!lIi,11% 8$10 per month 0$20 per month 4% . should be free Willing to p~yfor a Community Portal (ages over 65) :u. 200 123 100 o , I 307 49 21 11 ~ no $5 per $10 per $20 per should be response month. month month free Willing .~opay for a Co~munity Portal (ages over 65) 10% IB no response . $5 per month EI $1 0 per month lEI $20 per month .should be free 60% 2% This is the one category where all of the age groups agreed. From students through seniors, respondents clearly favored "free" access to a community portal, with $5 being the second choice. Others felt $10 or even $20 would be. fair, although some of these respondents might have been considering the price for complete Internet access rather than simply a portal, based 'upon comments during the on site surveys. It seems clear that if a community Int~rnet or Intranet portal is going to be accepted by Port Angeles residents, access will have to be free, or very low cost. It. also indicates that '.'perceived value". of a portal or other information service will have to be enhanced by solid, useful content if people are going to be charged for a'ccess. . 49 I I I I I I I I I I I I I I I I I I I 25). Willing to pay for a c'oinmunitY portal (price ve'rsus income) Finally, the database was used to compare the 'willingness to subscribe to a portal or other services versu~ respondents' ,income, to see if that was a factor in people's acceptance of access fees. Willing to pay for a Community Portal , ,(inc,ome <15,k)' . 100 j 100 50 o 105 14 20 8 3 L , I . I no $5 per response 'month, $10 per month, $20 per should be month ' free Willing to pay for a Community Portal . . . .. . (income <1Sk) 9% . no response .13% . $5 per month , 5% 0$10 per month 71% . 2% EI $20 per month . should be free Willing to'p'ay for a Community Portal (i~come ~15-25k) . 200 , 150 100 50 o o c: (J) .0 "0 (J) - (J) g~ .J::. (f) 50 I I I I I I I I I I I I I I I I I I I . Willing ~o:pay fQr a Co~munity Portal . (income $15-25k)' . .' , . no response 12% .$5 permonth 0$10per month 0$20 per month . should be free Y' ."" "'~"-,,','8,'.' ',; ,..,....!:.. ,', '... ',,> ."'~ ~.." L~",- ..A. Willing to pay for a CommunitY Portal . (income $25-~Ok). 5,00 1 400 300 200 100 o 458 97 --- 106 - 63 -, l 34 no $5 per, response month $10 pe~$20 per should be month month free . . Willing,top'ay for a Community Portal (income $25.;sOk) , 13% , , II no response .14% . $5 per month 61% ~ 8% 8 $10 per mo~th 0$20 per month 4% . should be free 51 , . .' .' ;. ,c . .. " C',- , ... -------'-----~---------------_..._--_.__.._-- II I I I I I I I I I I I I I I I I I I Willing to pay for a Coltlmunity Portal (income $50k-100k) 400 325 300 200- 100 o no $5 per $10 per $20 per should be response month month month free Willing to PflY for a Community Portal (income $50k-100k) 9% II no response ~~% . $5 per month - . . . 51% . 0$10 per month ." '!~14% 0$20 per month 6% . should be free Willing to: pay f<?r a Coltlmunity Portal (Income >100k) 1~1 79 18 21 17 10 L IIiiiIIiI1 - """"""" ........ no $5. per $10 per $20 per should be response month month month free . . Willingto pay for a Community Portal (income >100k) ~:% III no response . $5 per month 55% -~ 8$10 per month ~ 12% 0$20 per month . 7% . should be free 52 'I I I I I I I I I I I I I I I I I I I L__m The data shows however, that income is not an appreciable factor in people's "price 'point" for these additional services, All of the categories favored "free" service by a wide margin, with. a slightly higher willingness to pay anywhere from $1 O':'to~$20 per month as income increa'sed.' Again, it should be noted that some of the respondents might have been considering full Internet access, and not simply a portal subscription, when responding to this question. In any event all of the' comparisons on these questions show future services must be very affordable if they are to be successful, regardless of the age or income. of the users. 26}~ Overall age of respondentS As mentioned earlier in the. report, E~nable sought to gather as broad a sample as possible, in ordefto provide a wide cross section of Internet and e-commerce trends for analysis. Count by Age 750 726 800 600 400 200 o 42 ~0 o(;!' 0C:JQ 0" ~ "co ~ fjJ<-J . ~<-J ,Sj t!J. T,J o.::i. P.> qfrp ~ }<O:> r'b(:j Count by Age ,2% 14% II no response .12-18 o 18-29 030-49 . 50-65 lEI owr 65 As seen in the charts, we succeeded .in getting a relatively even split among the various age groups, especially in the primary age groups of 30-to-49" 50-to-65 and over 65 years of.age. There was also a strong sample of students between 12-and-18; focusing specifically on two large samples of 8th grade youth and se.niors at Port Angeles High School. There w?s:also input from others in this age range through both the "on site" surveys and drop boxes. . 53 I I I I I I I I I I I I I 'I I I I I I. I I I The 18-to-29 age group represented the smallest demog'raphic in the study, in keeping with the overall population breakdown of Clal.lam County, according to estimates by the Clallam County Economic Development Council. 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 o <20 20-24 25-29 30-34 35-39 40-44. .45-54 55-64 ~5 AGE (1999 Population Estimates) Clallam County E.D.C. chart 54 I I I I I I I I I I I I I I I I I I I 27). Overall income of respondents Income levels were tracked in the survey, not for specific economic information, but to cross check and analyze the other categories. Overall Income of Respondents 758 800 600 400 200 o .~I . ~",'",'.'''e ,,;--- ---~- -..,..-- ..-. ~7'""["":"~",:::""?/'iE:]:~:'i'C",~ ~~~ ~ ;.t_.j::j.::~.i'''~~~ IS] '-~.~~2:i?::::J El ,~~ r~ I : ('?"- ~ - __-:.-=='wo ~l l"?C--;-' rR':7'C~;~ t~, t_~~j:""'___~~__-'rr ~-"'-'-"'.L'" lJ,;.....;:::J ~ 12]' ;~:;L ~ :~~l '~ Q) III o C c 8- III Q) ~ .llI::: 10 ..- E.I7 V .llI::: LO C\I , I , .llI::: 10 ..- E.I7 .llI::: o 10 I '.llI::: 10 C\I E.I7 ~.llI::: 00 100 E.I7.... .llI::: o o ..- E.I7 ^ Overall Income of Respondents 6% 25% III no response .<$15k 25%. 0$15k-25k . ~~,6% o $25k-50k 28%' 10% .$50k-100k 1iI>$100k However, the numbers reflect a solid samPling of median, income Port Angeles area residents. Samples, of higher and lower income brackets were smaller but appear to reflect typical income statistics for Clallam County, where the EDC estimated' 1997 median income at $21,969. One-fourth of the survey respondents declined to give their income levels, even though they were assured the. results were strictly anonymous. However, this does not appear to have been ,8 factor affecting the' general results from the database that was tied to income. 55 I I I I I I I I I I I I I I I I I I ,I MERCHANT APPLICATIONS: As part of the initial E-nable survey, the report did gather some initial. information about the status of local businesses and their attempts to use the Internet for promotion, or evem fulle~commer6e applications. Aithough this sector ., heeds ,more detailed analysis, some conclusions ,can' be derived and measured against the more detailed analysis of the survey. Like many rural communities" Port Angeles businesses are ,attempting, to use the Internet as part of their marketing and sales. However; the E-nable Visions Tour learned that these efforts have had mixed results, A check of'many local web sites shows most businesses are still in the "brochure stage", with pages that do little more than announce their address, phone numbe'r and store, hours. Others have yet to arrive at this stage; During public appearances we fielded a 'number of questions from local busine'ss owners who seemed concerned about the cost of developing and maintaining their first web 'site., This situation has probably been aggravated by the widely ranging prices being quoted by various web developm'ent finns. However, there are businesses that are attempting to do much more with their 'web sites. A majority of local auto dealers now have web sites that include descriptions and even some photos ,of their inventory. Some financial ins~itutions are offering services on' their web sites and reporting Very strong public, interest, even with limited marketing of these sites. A handful of retailers are even. selling soine items over the Web. One downtown firm actually moved their existing on:' line business to Port Angeles, opening a retail storefront as an auxiliary to, their Internet presence. There are problems though; One downtown merchant who has been selling on-line 'said he had' been making many sales to customers' off the' Peninsula, ,but roughly half of the items had been returned b~cause the size or color was wrong. This has left him frustrated ,and wondering whether to pull back from e-commerce. Marketing and identification of local web sites' is another problem. Few merchants and, businesses are using their web addresses consistently in their advertising (although there are an increasing' number inClude.d ,in their latest phone, book listings). Without a more. concentrated marketing of these web sites, it,seems ,unlikely that customers will choose .these local sites over and above national businesses with more 'established "branding".,' Based upon these observations during the E-nable study, its' believed Port Angeles merchants can benefit most from the World Wide Web by using the Internet to tell the story about what' makes their "home town" business unique, with special emphasis on customer service or "niche" products that could appeal, to customers off the Peninsula as well as in Clallam and Jeffers~m Counties. \/ 56 I I ,I : I II I ,I il I I I I I I I I I I I I This conclusion is mirrored by a study released in September 2000 by the National Trust for Historic Preservation. The Trust is a non-profit organization that develops programs to maintain ,and support historic downtown districts. That study contacted more ,that 1,500 businesses in 16 downtown commercial districts nationwide and indicated that the Internet can spur sales in storefront retaiLbusinesses. Thereport found that more than 16% of "Main Street. businesses" were already using the Internet to sell their products or services, with most launching their web sites iri the last '18-moriths. More than 12% of those surveyed experienced an increase in. overall sales, with 14.3% of their sales already attributable to the Internet The Kelsey Group reported in May of 2000 that as many ,as 29% of American small businesses, not.just retailers, had Web sites, up from. 23% the year before. Given the strong totals of local Internet use and interest shown in the E-nable survey, more will have to be' done to' analyze the specific local' business approach to the Web, and develop concerted ways to market local sites. 57 I I I I I I I I 'I I I I I I I I I 'I I CONCLUSIONS: -A strong majority of Port Angeles area residents are utilizing the Internet, with numbers that may be higher than the national average. -More people say they use computers at home or both at home and work instead of just at their workplace. - The majority of respondents using the Internet are under the age of, 65. However, nearly half of the seniors surveyed are Internet users, with particular use for e-mail and e-commerce. " . -Internet use is exceptionally widespread among students and younger residents between 12 and 29, indicating a strong market that is already utilizing e-commerce. -Only a quarter of the respondents said they plan to buy a new computer in the next year, reflecting the overall downturn in national PC sales during the second half of 2001. -Internet users are a majority, even' among so-called "low income" residents making less than $15,000 a year. -Survey respondents indicate they 'are spending hundreds, and even thousands of dollars online. It's estimated this amounts to hundreds of thousands of dollars pe'r year that are escaping th'e local eConomy. -People say "convenience" is the number 1 reason they choose to,shop online. -'Survey respondents indicated very'limited ,participation in local online shopping opportunities, perhaps due to only a partial deployment of local e-commerce: or a need for much better marketing of existing local web sites. -Interest in local e-commerce is mixed, indicating it will take better ma'rketing and education to convince some people tc? try local shopping via the Internet. -Younger age groups are more interested in locale-commerce'opportunities than senior citizens who participated in the survey. ~Overall, 77% of those surveyed show an interest in improved telecommunications bandwidth 'to support economic development, including some residents who aren't presently using the ,Internet or have a lower annual income. 58 I I I I I I II I I I I I I I I I I I '1 -While television remains the preferred sourcefor'news and information, in a few short years the Internet has surpassed. radio, and captured nea'rly half of the audience ,of newspapers. -Nearly three-:fourths of the survey respondents indicated .they were "extremely" or "somewhat" interested in improved online access to"localinformation,-'products or other services. -A majority of respondents said they weren't interested, ,or needed more information, about the services that would 'be provided through a ,community portal. ' ' ' , -All age groups felt that a community portal or additional services should be free, or low cost'($5 per month). 59 I I I I I I ,I I I I I I I I I I I I I COMMUNITY RECOMMENDATIONS: . . 1). The City.of Port Angeles srould promote and pursue the immediate and rapid. deployment of widespread, affordable and proven.broadband technology such as DSL or. cable modems in order to pro~mote. e'conomic' growth through advanced telecommunications services and bring Port Angeles to "technological .parity", with. other communities already employing broadband. services. 2). The City of Port Angelesshould:adopt a policy and advocate local business:to recognize that . upwards of 79% of local consumers/customers are using the. Internet. The City should also aggressively. support 10~1 businesses with .. e-commerce initiatives to recapture "buy local" tax dollars leaving the. community. 3). While the City of Port Angeles should support private sector development of Internet portals, or' advanced information. services, the lack' of stron'g survey interest in a portal should prompt the.qityto '~)roceed Cautiouslybeforecommittin.g to such a project at this time. . 4). Phase 2 of the E-nable Community Visions Tour should be considered, focusing on fu'rther definition and identification of Internet applications.' and. services that are needed for :the design of. a private,. public or. public/private community network. 5). An immediate and concentrated initiative should be launched with the cooperation of loeal business .gro'ups like the Port Angeles Chamber of Commerce to identify and develop "'Nays to expand the use, and market,ingof e- commerce opportunities with the goal of recapturing retail dollars being spent with companies off the Olympic Peninsula. The city should also support.'effo"rts to educate all of. its' citizens on ~ow bUY,ing trends impact a sustainable ,local economy. 6). The City of Port Angeles should consider assisting a technology "strike team" from within the community, empowered with the ability to analyze. and evaluate. Internet/telecommunications proposals that are brought forward bylarger,out-of- . town firms... This panel would be comprised of private and public sector members knowledgeable ..about current techn.ology and telecommunications developments, who could seek further information on proposals,. educate the public and provide timely advice and assessment to.city leaders. ' 60 II I , I I I I I I I .1 I I I I I I I I I 6). "ADDENDUM" J Authorshio: Den::'Ree Productions"is a Port Angeles~based firm that is locally owned and operated by Dennis .and. LaRee. Bragg and .specializes in multimedia content. production, public relations and consulting. Den-Ree Productions,and associate Karen Rogers of Northstar,Data Sales and Marketing, a business~to-business cOnsulting firm, first discussed the concept for, the E-nable Visions Tour and Survey. atter realizing that" the, . community needed.more definitive information about local technology trends. Working with Port Angeles city staff and membersofttie PA Works!'Committee, the authors refined the concept and launched the study with the support of the Port Angeles City Council, utilizing funding provided ttlrough a special ecOnomic .' dev:eloprrientgrant provided to the City of Port Angeles by Rayonier, In.c. Soecial Thanks: The E-nable Visions Tour 'and Survey would not have been possible without the)deas, cooperation and support of many individuals and businesses: Port Angeles City Staff: City Manager Mike Quinn . Economic Development DireCtor Tim Smith PA Works! Committee: Howard "Mac" Ruddell Karen McCormack Leonard Beil Orville Campbell Jim Hulett Larry Williams Randy Johnson Karen Rogers Port Angeles City Council: Mayor Larry Doyle Cathleen McKeown Gh:mn Wiggins Lauren Erickson Orville.Campbell Jim Hullet Larry Williams 61 I' :.1 I II I I I I I I I .1 I I II I I I I II II Clallam County Economic Development Council: EXecutive Director Jim Haguewood' Survey Participants:' First FE3dera.1 Savings & Loan. North Olympic Library System Tenforward CommuniCations Br.own's Outdoor City of Port Angeles Ruddell Auto Mall J.C. Penney Stevens Middle'Sthool Roosevelt Middle School Swains General Sto're Albertson's Safeway Peninsula College Wal-mart Port Angeles High School Pqrt Angeles Service Clubs, Business Groups.,arid Groups 62 Petition To: Mayor, City Council, and City Manager of the City of Port Angeles Subject: The Highland Courte Drug Rehabilitation Center is ignoring or repeatedly violating various conditions of its Conditional Use P~t. The standard answer when this matter has been brought to the ~tte~tiono!~~S~~~~l~ng Office and City Attorney is that the continued ope~fi<>'~~f le~~r~ta,~;'~f:E-I!8h.land Courte is in litigation aIld th~refore n~thit1gcan. or,will~q~#~ 8l>g~tw~~~~~'syiolatio!1S of its ConditiOlial Use Permit! The UnderSigIiedreque~t~pm>lic:he8ring before the full City Council to. have this matter aired and explained to thecomril.unity of Port Angeles Name Address . ~f}~ /g';!'7J:: 5THST. rA. ... ~~~~;::~~.: ..' ;z$J JJl ~ ;n?~4"4~ C/ M ~ . - t 4~~ )'d[rI~y-l.l-- ~~~~ Jl~:J~tr;;(~J ~~frcJ:!I1J/ 7/1- L'<;n-,Or-C::/ ~;€a11~'-/ 10/ - tJ?f~/2!fJZ {!::f: aM,yv &t9 J ~/3 ~ La~y-:J5PYL II i Ii.., /J ,~ I f / 3 t"J...c~/ /w^-' CUA/"OA--t.-f'-L/ L~' v :r;;~,/:,A: ~~' ('~ 7/t Cljf'/~v~ f Ii. /2. t M, 0- 'f o?trl.d;.,~f ~~fR~~ ~p . . J . ,:. ,,~t~<=Y (31o C-hndtr1oll PI a~~~ 13~C AJ/5tm/\ jJ I 1-r~ ~Z,44~ ,3 C; <?...- h", cst (VI-AfJ PL., ~J P~J-o 73 <j C["i,*,,'l4//~ PIPlLI ~~~ 71ro t-'~:~+-t1kE.. , '\ \ Date ~'B/~I .zf~/~(' 1:-$ ~ / d2/~.~c'/ ~~/;J/ :J-! z-'~I C> / J. /J.Jl 0 I o/~V~/ 0/+1 ;./ 1.." /0 / ~JJs;lV J .;{ -.;Q -b i ' ~__~t9 ) / / Lt, S ;)..- LI/6d 1f<; J-- '4/.7 c y _1)' 2~ C) ~ 0 y '{ 'S:l~ D[(D ':i 2/ :LS - 0 { 15d'.-17e~ Petition To: Mayor" City Council, and City Manager of the City of Port Angeles Subject: The Highland Courte Drug Rehabilitation Center is ignoring or repeatedly violating various conditions of its Conditional Use Permit. The standard answer when this matter has been brought to the attention of the City Planning Office and City Attorney is that the continued operation or legal status, of Highland Courte is in litigation and therefore nothing can or will be done about Highland Courte's violations of its Conditional Use Permit! The Undersigned request a public hearing before the full City . Council to have this matter aired and explained to the community of Port Angeles Name Address /7'oA Date ~y(?J /7tJl~~.'~'~' /J ;:!-;).5:'~/". l}, " ,/ .'" 7, /<4/' " Y.'/" .~, 0/,' v';/ C/...2/,:":' -2. <::1 /' ;_/ If /~~ //1&, {fp~V .,A ~~.-AC / va J! ~ 17-/ . ,./; D~ tJ ,- I' '. I c/( -< f..,----- (I / f::.11~ . r .J lov./.f/h17t:.. -R7).JV62 ~"'-' '-f-/ "m _ p~ . ! ?,,:3 E.,. L It- v ~ ( . 5 J:~ BL.. v j;).. rL"tf- /\J&oLa: ~/,1 /" 'Yr24~;t ,7 g .c' /., ~v jJ , "V'"~ , , , " -' /: , j,/] ~ v4t I b.~ .. . .Jf t. :/I jQ1 ~/o / ,SIT:! () t ',.~) ISIS -t ~ 51 .Je~v 6.~r" '<1 , . ),P~ &A-'~-4/ ~VcJl,',~~ _ ~ ~ . 0., _ '-' )~.s :).- 2ic .- 0 ( ..y . ,r:-Mr- ' I TS-S l::.' "= -\ <::,,-, \, wG ~'-I ~. ~o i<~.~~ t- a~l.e.1') ~'-e./ ~JeA-- 7 .:< J e,Q.~ Cl/(L{'t/1-..F-Q, F w. 7 ~3 ;t~~(.?"&I'G?A, "7 J /!/ '. .' . l, /1 / I 2. The applicant describes the facility as providing professional and affordable treatment services for up to 48 men and women based on the "12 Step Recovery Minnesota Model." Treatmtmt will consist of group, individual, and family therapy and includes lectures, video presentations and professional guided group therapy. 3. Although the application also included "mental health triage and stabilization services," the applicant has stated these services are no longer part of the application. 4. The project site is located at 1704 Melody Circle. S. The 2~ acre site is located. in an existing residential district with a mixture of single family homes, multi-family apartlnerits, and senior housing. 6. The existing building and grounds were constructed and opened in 1999 as a 42 unit assisted living facility for residents with Alzheimer's disease. A CUP (CUP 97-13) was approved for the Alzheimer's use in 1997. 7. The proposed facility will be managed by Northwest Care Services, the same company that managed the previous Alzheimer's use at the site. The facility will be a private pay facility and will not be affiliated with goveinment agency. 9. A "medical director" will oversee the facility and staffof30 employees. 10. There will be no doctors or.nurses on staff, the staffwill be trained professionals who will work under the supervision of a licensed medical doctor. The doctor will visit the facility once a week and be on call for the balance of time. 11. The average length of stay for a patient will be 21 to 28 days. 12. The services will not include detoxification. 13. Patients must voluntarily apply for admission and shall not have been ordered by a court to any type of "locked down" treatment. 14. Visitors will be only inside the facility and only on the weekends from 8 am to 5 pm. 15. Patients will not be allowed outside the facility without being in the company of a staff member in a one-to-one ratio of patients and staff members, except as may be necessary in the event of an emergency. 16. The facility's grounds include two yard areas for recreational purposes secured by six foot high fences. ~ ., 7. ;;: .., . PROVIDER AGREEMENT DRUG COURT 2000-02 TREATMENT This AGREEMENT is entered and effective January 1, 2001 through June 30, 2001 between CLAlLAM COUNTY, STATE OF WASHINGTON, hereinafter referred to as "County" and HIGHLAND COURTE, L.l.C., and hereinafter referred to as "Contractor". CLAlLAM COUNTY DEPARTMENT OF HEALTH AND HUMAN SERVICES Address: 223 East Fourth Street Port Angeles, WA 98362 Main Phone: (360) 417-2549 Fax: (360) 417-2581 Contact Person: Contact Phone Preston Kayes, Drug Court Coordinator (360) 417-2549 Contractor: HIGHLAND COURTE, L.L.C Funding Authority: Drug Court Fund Address: 1704 Melody Circle Port Angeles, WA 98362 Phone: Fax: (360) 417-5356 (360) 417-2773 Contact Person: IRS #: 91-2046822 UBI #: 602036858 Robert Martin PURPOSE: 1. To provide Chemical Dependency Inpatient Treafment services to Clallam County Drug Court clients. 2. To acknowledge the receipt of the County Substance Abuse Framework Guidelines (CSAFG). J: IUsersltdavidsolprivate I W ordIDrug CourtlHighland Courte Provider Agreement. doc --l . ,-- ! o"tx>t\ol . J ~' e<".~' ,r"", ", '. ,- """' " ~ORT ANGELES CITY OF 4 WAS H J N G TON, U. S. A. PLANNING DEPARTMENT June 6, 2000 Mr. Tim German 405 South Peabody Street Port Angeles, W A 98362 RE: Conditional Use Permit - CUP 00-03 1904 Melody Lane Dear Mr. German: As you know, following the special public hearing conducted on May 31, 2000, the Planning Commission approved Conditional Use Permit CUP 00-01 to allow a chemical dependency treatment center in the Residential Medium Density zone. The pennit was approved citing the following conditions, findings, and conclusions: Conditions: , , 1. The particular use being conditionally permitted is Highland CoUite, a private inpatient chemical dependency treatment center. 2. The chemical dependency treatment center services shall not include detoxification. 3. Patients must voluntarily apply for admission and shall not have been ordered by a court to any type of "locked down" treatment. 4. The treatment center shall serve only adult patients. 5. The treatment center shall only admit patients who swear by written affidavit that they have not been convicted of a violent, sexual, or felony property crime. The treatment center shall verify this information by obtaining a criminal background check as soon as practicable, including performing a Washington Access To Criminal History background check with the Washington State Patrol's WATCH web site, or a similar background check according to the state in which the applicant resides, before admitting any patient. Applicants who have been convicted of a violent, sexual, or felony property crime shall not be admitted or shall not receive further treatment. 321 EAST FIFTH STREET · P. O. BOX 1150 · PORT ANGELES, WA 98362-0217 PHONE: 360-417-4750 · FAX: 360-417-4609 · TTY: 360-417-4645 E-MAIL: PLANNING@CI.PORT-ANGELES.WA.US "~ German - CUP 00-03 June 6, 2000 Page 2 6. The treatment center shall not admit persons with coexisting mental health and chemical dependency diagnoses in accordance with the Diagnostic Statistical Manual, DSM IV. 7. Visitors will be allowed only inside the facility and only on the weekends from 8 am to 5 pm. 8. A patient will not be allowed outside the facility without being in the company of a staff member in a one-to-one ratio of patients and staff members, except as may be necessary in the event of an emergency. , 9. Because admission is only voluntary and a patient m~y choose to leave the program prior to completion, individuals who do not successfully complete the treatment program shall be either driven by a staff member to the airport or downtown bus transfer station or picked up by an adult family member or other responsible party. 10. Patients will be brought to and picked up from the treatment center and will not drive to and park a vehicle at the treatment center. II. The treatment center will use its best efforts to ensure that at least 5% of the patients shall be residents of the Port Angeles (Zip Code) area, including making financial aid available for local residents. 12. Highland Courte shall receive advice and community input from an advisory board comprised ofthe ~xecutiveDirector and a group of volunteer cOII1punity meii}bers with priority given to volunteers from the surrounding residential neighborhood..,...... 13. Highland Courte shall not seek additional licensing of other treatment authorities without applying for and obtaining City approval. 14. Highland Courte will provide semi-annual verification of compliance with these conditions in the form of a written report to the Planning Department and Planning Commission including a list of treatment center violations reported to or by State agencies. The semi-annual report will also include a written report from the advisory board. 15. All suspected incidents of criminal conduct will be promptly reported to the Port Angeles Police Department, and treatment center staff will cooperate with the responding police officers by giving written statements and as otherwise requested. Findings: The following findings are based on the information provided in the April 12, May 10, May 24, and May 31, 2000, Staff Reports for CUP 00-03, including all of the attachments. Consideration was also given to the comments and information presented during the April 12, Gennan - CUP O(}..OJ June 6. 2000 Page J deliberation~ Consequently, the City of Port Angeles Planning Commission hereby finds: 1. The applicant, Highland Courte ;.. Tim German, applied for a conditional use permit to establish a private, chemical dependency treatment facility in the RHD zone. The , application and supplemental infonnation are-identified as Attachment B to the April 12, 2000~ Staff Report and Attachment B2 to the May 10,2000, Staff Report for CUP 00-03 ; 2. The applicant describes the facility as providing professional and affordable treatment services for up to 48 men and women based on the, "12 Step Recovery ~esota M~del.J1 Treatment will consist of group, individual, and family therapy and includes lectures, video presentations and professional guided group therapy. - .. .. . 3. " Although the 'application also included "mental health triage and stabilization services, Ii the applicant has stated these serviceS are no 'longer part of the application. , , - 4. The projeCt site is located at 1704 MelOdy' Circle. , , 5. The 2~ aciesite is locatedin aD ,exfsting r~idential distric~,Wi.th a mixtur:e of single famtly homes, mUlti~fatnily apartments, arid senior housing. ' 6. Th~ existing building and grounds were constructed and op~edjn 1999asa42 unit ~sisted living faCility'for residents with Alzheimer's disease. A CUP (CUP 97;';13) was 'approved for the Alzheimer's use in 1997. ' 7, The proposoo facility will be,managedbyNorthwest Care Services, the same company, that managed the previous Alzheiuiet's use at the site. 8. The facility will be a private pay facility. and'will not be affiliated With any govemnient : agency. 9. A ~medical directoJ,"" will oversee the facility and staff of30 employees. , ' 10. There Will be no doctors or nurses on'stan: the staff will be trained profesSionals w:ho Will work under'the suPervision ofa licensedmedlcal do(;tor. Thedoctor-wiU visit the " facility once a week and be oneall for the balance of time; 11. The average length of st~y for a patient will be 21 to 28 days. 12. ' , The services will not include 4etoxification. ,13~ Patients must voluntarily,apply for admission and shall not have been ordered bya court to any type of 1I1ocked dowrin tr~atment. ' German - CUP 00-03 June 6, 2000 Page 4 14.. Visitors will be only inside .the facility and only on the weekends from 8 am to 5 pm. 15. . Patients will not be 3110wedoutSide the facility without being in the company of a staff member in a one-to-one ratio of patients and staff members, except as may be necessary in the event of an emergency. 16. . The facility's grounds include two yard areas for recreational purposes secured by six fo()t high fences. . 17. Completion of the progr.am may satisfy a court .order for 1rea~ent, but the program shall exclui:1e those pe~ons ordered to. any type of "locked doWn" treatment.' . 18. A patient may ch90se to leave the.progr~ prior to its c~mpletion but may not leave:the. . facil~ty on his or her own; . . . . " . '. . ." 19. ' The City's Police bepartm~t reyiewed the proposed project and imld~ comments in . memos dated April 5, 2000, andid~tified as Attaehnient'C to the APnI12,. 2000, .St~ Report. and dated May' 3, 2000, and identified as Attachment C2 to the May 10, 2000, . . Staff report for CUP 00-03. . . . 20... The .Police Department.cob.~~te4'loc.allaw etiforcementdfficials related. to similar facilities loc~tedin.the.CitiesCJfMoulitlake.Terrace~ Kelso, Aberde~ YakimaIYakima . County, Momoe, Kirkland/King,County, Olalla/Kitsap County, an~_Lacey Washington. . . . . 21. . 'the Police Department,m~os. e~ressedreserVations'aboutt>ublic'safety"impacts experienced in other cODlDlunities occurring with. the proposed inpatient chentical dependency treatment center at thjs loc~tion ~ a residential area,. and th~e I'eservatio~ . have led to.the development of'se"eral conditions forapprov~'regardii1g admission restrictions. . " 22. Section 17.08.~20(E) of the Port Angel~s Municipal Gode ~tates:the deijrrition of a. 'Conditional Use Permit is /Sa limited permission to locate .a; particula,ruse at' {,. .' particular loca.tion, and which limitedp~ission is required. to modify the con,trols' stipulated by the Zoning regulations, in sUch degree as. to ~sure that the /iarti(:Uiar use shalt n'ot prove detriinentai to surrounding properties, shall not be in conflict with the Comprehenaive Plan, and shall not be contrary to the public interest. /1 23. S~tion 17.96.050 of the Port Angeles Municipal C9d~ states: the pWpose of a CUP is to' Kassure that the maximum. degree of compatibility beiwe~ uses slu;zll be attained; n .CUPs may begr~ted'for projects'thatKare consistent .andcompatible with the purpose of the zl;1ne, , " consistent with the Comprehensive Plan, and not contrary to thepublic . use and 'interest; n '. . . and a CUP may be de,:lied if the proposal would "defeat the purpose of the' Zoning . Regulationa.by introducing incompatible, detrimental, or hazardous conditions. II. Gemuzn - CUP OO-OJ June 6, 2000 Page 5 24. The definition of social services in the Comprehensive Plan states, 'Social services means those services necessary to support'life and health, such as/ood banks, hospices. home health, congregate care, and day care services. " 25. The site's Compre~ensive Plan designation is HiW1 DensityResidential [HDR]. This designation' is "intended' for areas where a higher concentration, of residents il[; compatible with the surroUnding area and uses.' Condoririniums, apartments, aild planned residential developments are the types of building designs appropriate for this category. " 26. The City's Comprehensiv~ P,lan's Land Use Element Goal C and Policy CI establish the district and neighborhood concept for tesidentialland use planning in the City and' UtilitieS arid Public Services EI6men~ Goal A and Policy A3provide or allow the 'opportunity fot social servi~ for citizens with special needS; These goals and policies are listed iri Attacbritent D3 to the May24, 2000, Staff Report for CUP 00-'03. " . 27. Policy Clstates ~lthough such districts may be composed prjmarily'of residential uses . of a uniform denSity, a healthy, viable diStrict should be ceJmposed ~fresidentlaruses . of varying a'ensities which may be augmented'by subordin(lte a~d co'!'patible Uses; Single family and multi-fainily homes, parks and open spaces, schools, . churches, day care and residential s~rvices, . home occupations,~ and district'shoppfrig areas are all . legitimate,components of. district development and enhancement. /1 28.:Utilities and,Public Servicc;:sElement. Goal kstates,. 'To'proVide or~llow the opportunity for servicesandfqcilities which enhance the qualitybflifeforPdft-Al'lgeles citizens of all ages, characteristics, needs, and interests. . . . 29. Utiljties.and Public Services Element Policy A3 states~ 'Social services providing home care sheJuld be :[ocated in reSidential neighborhoods in a manner that maintains the character of t~e immediate neighborheJod. 11 30..' The Americans with Disabilities Act recognizes people with chetilical dependency as a p~tected class of citizens who have rights for social services which are necessary for' . their particular needs. This w~uld include services which are proVided in an inpatient residential. settiI.1g, ur)less there is specific, well-documented evidence of significant adverse tinpacts.that cannot be mitigated. , 31. - The applicant applied for a CUP based on the use as . a private, hospital. Upon review of the application, including supplemental information provided by the applicant, staff does not feel this use qualifies as., a '1Iospital iT use which "specializ~s in giving clinical, temporary and emergency services of a medical or surgical nature." . 32. The proposed use is located in an established'residential district and multi-family/senior housing neighborhood. It"is in close proximity to existing single-family neighborhoods to the northeast and southeast. ' , ", German c CUP OO-OJ June 6, 2000 Page 6 . 33. The purpose of the RHD zone states UCompatible land uses maY be allowed on Conditional Use Permits but the zone is still regarded as 'a residential area, and commercial enterprises are not generally felt to be compatible. II , " 34. The City's State Environmental Policy Act Responsible Official issued a Determination, ofN:on-Significance for the project on April 7, 2000. " 35. Following the optional DNS process (WAC 197-11-355),' the City expected to issu~a DNS for the Highland Courte CUP, 00-03., Slib,sequent coIIlplents by the Port Angeles Police D'epartrrient ~dentified advme secondary. effects that o~urred for similar developments it1 Mountlake Terrace and KelsO, Washington. Based on these commen~s, the SEPA Respotisible Official recpiIsif.iefed the threShold determination 3.l1d cOilcluded that-such' adverse , , impacts, even iffound,tobe significant, could be conditioned or the proposal denied ' b~ed on tJie City's CompreheJisfve,Pbin'and Zoning Code tbr<>ugh t4econd~tion~ use pennit process and,under the SEPA subst~tive authority in WAC 197-11-660(1)(a). " , , , . . .... . 36. 45 ~etters of comment'requesting denial of the' GUP were, receiyed froth the public: regarding this application;, and a petition with 40 si~atures OJ:JpOsingthe project was, submitted to' thciPlatining Department. ,Concerns expressed.in the letters inClude ,fears "of increaSed crin!J.e and potential , JIDpacts on' personal, safetyartd property; mcreased , traffic..deereased property v~ues; and the overallincOlilpatibility of the proposed use , and the existing residences. The ,letters of~ommentare included in Attachment 'Eto the' , April 12, 2000, Staff Report, A~hment E~'tothe~ay 1 0, 20PO;,~taffReport;'8n~two, additional lerters provided with the l\1ay 24, 2060; StaffReport'fot:GUPOO;.03~'\f' 37., The public comnient period ran from March 22, 2000 toApri~ 6,2000. 38. Th~facility will require 17 parking spaces; 29 space.s,are provided'~n site. . , . 39. The applicant has reported that there ar~ 3,901 Clallani COlmtY adUlts who are in need of chemical dependenCY treatmertt.' ' , , , , , 40. . - The applicant' s tepresentativ~sand legal couns~l have met with tl\e CitY Attorney and PlanDing Dir~tor to review and ~yise-~e proposed conditionS, and there is _agreement ,-, that the proposed conditions are appropriate and enforceable, except forCoJ?dition No. 5. 41~ Th~ applicant is proposing to accept certain conditions for-permitting a'private intensive inpatient cheinical dependen,cytreatrrient center in a residenti31 area., 42. The applicant's representative testified that the ,admission- policies will discourage patients from drivmg:themselves'to the treatment center and parking their vehicles 01)- site. ' " German - CUP 00-03 June 6, 2000 Page 7 Conclusions: The following conclusions are based on the information provided in the April 12, May 10, May 24, and May 31, 2000, Staff Reports for CUP 00-03, including all of the attachments. Consideration was also given to the comments and information presented during the April 12, May 10, and May 24, 2000, public hearings, and the Planning Commission's discussion and deliberation. Consequently, the City of Port Angeles Planning Commission hereby concludes: A. The proposed project is eligible for a CUP in the RHD zone as a '~ocial service agency providing 24-hour residential care. " B. The definition of "social services" in the Comprehensive Plan is broad enough to encompass both residential and nonresidential life and health services, including chemical dependency treatment in a residential care facility. C. The City's Comprehensive Plan policies support the provision of social services in residential neighborhopds in a manner that maintains the character of the immediate neighborhood. D. As conditioned, the chemical dependency treatment center is subordinate to the surrounding residential district and may be found to serve the neighboring residents and to be compatible with the surrounding residential land uses. E. The proposed use with adequate cpntrols is compatible with th,e adjacent land uses; and .. CUP approval isspecifically'liniited to this particular use as condjtioned(ariynew or expanded uses including additional services and other admission criteria will require a new CUP approval). F. With adequate controls, the proposed use can meet the daily needs ofthe neighboring residents and is consistent with the intent the RHD zone and the City's Comprehensive Plan Land Use Element Goal C and Policy Cl. G. The fifteen conditions mitigate concerns raised in the various staff reports and by neighboring residents. H. Although this is a nonresidential use providing primarily social services not residential services, the inpatient chemical dependency treatment center does provide this social service care in a 24-hour residential setting. I. The facility is the same as it was when designed and used as an Alzheimer's care center and physically does not change the established character of the immediate multi-family neighborhood. German - CUP 00-03 June 6. 2000 Page 8 , ( J. The evidence of increased public safety risks have been adequately addressed by the conditions which restrict admissions to those patients with low risk characteristics similar to the general population of the community.' K. The parking provided c;>n-sit~ will hot accommodate patients' vehicles, and it is not desirable to aid unsuccessful patients leaving the program in contra-diction to Condition No. 9 by allowing their vehicles to be parked on-site.", This decisionis.tinal unless appealed to the City Council within 14 days of the action. rfyol1 ,. have any further questions, please don't hesitate to contact this, office.' ' Smcerely, .lL .. .' '...". '. " , Su~Roberds ' ~lanning Specialist ' cc:CraigMiller , Craig Knuts<m,'City .Attorney Parties'ofRecord . North Olympic Peninsula Visitor & Convention BUreau 2000 A great year for the bureau! By Rick Hert, Executive Director North Olympic Peninsula VCB One hundred and ten years ago tourism as we know it began on the OlympiC Peninsula. The 1890 Press ExpeditioIl's exploration of what we now call the North OlympiC Peninsula charted the way for future travelers--and we've been success- fully growing tourism ever since. In 2000, we celebrated a 9.02 percent incr~e in room tax revenues throughout our region, spurring more extensive marketing and promotion. Chalk up this growth to stronger cooperation among marketing organizations. VCB members can look to a rosy future as we continue our success in growing tourism on the OlympiC Peninsula. Whether we are working with the Washington State Tourism Office, the State Film Office, our state's tourism offices overseas, or talking to consumers on the toll-free line (800.942.4042), the leads continue to come in. The VCB answered approximately 5,300 travel inquiries this year, sent out 60,000 visitor guides, participated in 10 trade shows and escorted dozens of people around our peninsula- from European tour operators to German bike riders to U.S. film executives. Each contact told visitors that the North OlympiC Peninsula is a great destination. ANNUAL REPORT 2000 Increased visibility in 2000 Crop circles appeared in Sequim as Mountain Dew filmed a "Do the Dew" commercial. We hosted many familiar- ization tours in September, showing off the peninsula to Germans, Japanese, Dutch and Australians who are featuring our area in their web sites, bike rides or tour plans. Volunteers, staff and other tourism organizations assured our ~isitors they would love it here. The result? More visitors and more product knowledge about our area. In fact, 200 German bike riders plan to visit the peninsula next year as a result of one of our familiarization tours. From Sunset to Golf Digest to travel books and directories to foreign magazines and broadcast media, Kristi Agren has sent information and story ideas, hosted writers and pushed for media coverage. Our office generated close to $200,000 worth of free stories and information .I about the Olympic Peninsula in 2000. Your VCB works with consumers by providing travel counseling by phone and mailing visitor guides and area brochures. We help facilitate meet- ings, conventions, and family and class reunions. The bureau is one of six official film liaisons for the State Film Office. Together, we work on behalf of the Olympic Peninsula to attract ,companies producing commer':' ~''cials, feature films and photo shoots. '-' YourVCB is Photo: Valerie Henschel the front . door in . working with several tourism trade associa- tions (national al1d international) and government tourism offices. We are members of all the local chambers, Travel Industry of America, Public Relations Society of Am erica, International Festival Association, Tourism Victoria and the Washing- ton Association of Visitor and Convention Bureaus, which repre- sents 20 VCBs around1he state. Rick Hert is honored to serve as the association's president, a role that forges closer interaction with state tourism officials and legislators and puts the North Olympic Peninsula at the forefront of state issues. ,;t NOPE-VIZB Pronounced just as it sounds, it was coined by Nancy Barino, Marketing Director from Port Townsend, because our name is just too darn long. Our name, mission and marketing activities are all on the discussion table as a Blue Ribbon Committee is examining how we do things and how we can do them better. The committee, made up of members of the Executive Committee and Board of Directors, invites the public to join in the process. The group has met through 2000, and we plan to make many subtle changes in 200 I that will make us stronger and more effective. We continually review our partnerships to create a more efficient tourism marketing agency representing the entire North Olympic Peninsula. Media - working with the press, promoting story ideas The bureau really shined in this area last year. We worked with major magazines such as Sunset and AAA Journey, international publications like St. Remy media, a Toronto guidebook publisher and Geo magazine from Germany as well as many newspapers. Favorable articles were printed in USA Today, The Lewiston Morning Tribune and major newspapers and magazines in The Netherlands. We generated at least $190,612 in editorial and media placements. Coupled with our 1999 media story success of $338,990, we con- tinue to do well. -1 I I I I I I Film and Video - lights...action... spend lots of money in our area We are lucky to live in a unique place. Olympic National Park, and the-rain forest in particular, have drawn 12 to 20 film projects a year. Toyota and Nike used National Park settings for commercials in 2000. We also attracted a travel show that aired in Germany, a fishing show for Trout Unlimited and a motion picture on the Sasquatch legend. Aliens landed outside the Park, in Sequim, as shown in a Mountain Dew commer- cial, and the Hyatt hotel chain hired a well-known still photographer to shoot photographs of the rain forest for its promotional brochures. Total estimated impact of filming on the \ North Olympic Peninsula this last year totals more than $150,000. The bureau was fortunate to attract several projects to our area, but it is also important to note that we worked on many more that we did not secure. We scouted and lost "Planet of the Apes" and Kevin Costner's movie" 13 Days." We are successful about 25 percent of the time, and we keep trying. The benefits of bringing film compa- nies to our community are varied. While here, their representatives fill hotel rooms, buy meals and spend money in area businesses. After they leave, the Peninsula is promoted on the big screen and in magazine photographs. Group Tours - and people coming in buses . The tour business is changing. We are seeing fewer large groups and more vans and individual fly-and-drives. Fly-drive packages allow customers to fly in, rent a car and follow an itinerary at their own pace, rather than being committed to a tour bus schedule. The bureau worked directly with 15 tour companies that provide this service. We believe that these contacts will generate new tours and itineraries to our area resulting in new business. Each bus tour repre- sents about $3,000 a day. We added 'r10~~ about 10 new dcJ~ ~ buses to our area ~ ~ . for a modest if) $30,000 impact. We also attended the Travel Industry of America POW WOW trade show, which works primarily with foreign press, group tours and individual fly- drives. Together with the State Tourism Division, we participated in more than 200 meetings, which helped us secure film projects and foreign press attention. The peninsula is now included in dozens of foreign tour operator itineraries. With the Kitsap and Grays Harbor VCBs we completed "The Olympic Peninsula Group Tour Guide," which earned us a Georgie Award from the state Tourism Division iri recognition of our exemplary efforts to promote tourism. The book is used to entice tour companies to visit our areas. ~""'I'''jf~'''',-'ffb,.i t"~ '~~~4.~'~#I'r ~~ North Olympic Peninsula VIsitor & Convention Bureau Nopves MEMBERS 7 Cedars Casino Clallam County EDC Galerie Du Solei I A Hidden Haven Clallam Transit System Garnero, Smith, Hurd & Miller All-View Motel Clarks' Harbor View B&B Gateway Therapeutic Massage AI's RV Park Coldwell Banker Settlers Real Estate & Steam room Center '" Anchor Marine Repair Inc. Coldwell Banker Uptown Realty Graysmarsh Farm, Inc. Angeles Inn Bed & Breakfast Colette's Bed & Breakfast Greater Ouilcene/Brinnon Chamber Arthur D. Feiro Marine Life Center Copies Plus Greywolf Inn B&B Groveland Cottage B&B ,:'l Bay Motel Country Aire Natural Foods Bay ton's On The Bluff Curley's Resort & Dive Center Guided Historical Tours - Individuals & Groups ~ Bella Italia Destiny Seafood & Grill Harborside Inn Bergsma Showroom Diamond Back Guide Service Hatzoff Productions Best Western Olympic Lodge Domaine Madeleine B&B Helga's Edelweiss Bed & Breakfast Bishop Victorian Hotel Dungeness Bay Motel Herb's Motel BJ's Garden Gate B&B Dungeness Inn Golf & Country Club Heron Beach Inn On Ludlow Bay Black Ball Transport -M V Coho Dungeness Panorama Bed & Breakfast Hoh Humm Ranch B&B . Bosun's Locker Inc. Dunlop Realty, Inc. Homer Smith Insurance Breakwater Inn Restaurant Eagle Point Inn B&B Horizon Air Brinnon Flats Bed & Breakfast Ecologic Place Huckleberry Lodge Budget Rent-a-Car Econo Lodge Idle Wheels RV & Mobile Home Park Bushwhacker Restaurant Elk Meadows B&B/Nursery Indian Valley Motel/Granny's Cafe Cafe Garden Restaurant Elwha Ranch B&B InsideOut Marketing & W~b Solutions Camaraderie Cellars Eric's RV Performance J.C. Penney Department Store Captain Jacks Sea Charters Fairholm-General Store, Cafe & Marina Jim's Pharmacy o . Captain 1's Custom Stuff Fairmount Motel JKT Development-Jamestown Captains House Fairmount Texaco & Deli S'Klallam Tribe Cedarfield Farm Far West Motel John L. Scott-Port Ludlow :, Centrum First Street Haven Restaurant Joshua's Restaurant & Lounge C'est Si Bon Restaurant Fisherman's Widow B&B Kalaloch Lodge ., Kayak Port Townsend Chestnut Cottage Restaurant Five SeaSuns Bed & Breakfast Chevy Chase Golf Course/Cabins Forks Chamber of Commerce Kit's Llama City of Port Angeles Forks Motel Lake Crescent Lodge ~ City of Sequim Forks thrifty MartShoppiQg Center Lake Ouinault Lodge Clallam Bay Correction Center Fort Worden State Park Conference Lake Sutherland B&B Clallam Bay/Sekiu Chamber Center Landing. Restaurant/Dockside Lounge Clallam County Frugal's Burgers Laurel Black Design for Marketing & ) Communications -"' .. Lizzie's Victorian Bed & Breakfast Log Cabin Resort & RV Park Lytle House Bed and Breakfast Makah Tribal Council Manitou Lodge B&B Manresa Castle Manresa Castle Victorian Restaurant Marina Restaurant Merrill & Ring Pysht Tree Farm Michael's Inn Miller Tree Inn B&B Music World Travel Native American Adventures NOAA/Olympic Coast Nat'l Marine Sanctuary Northwest Manor B&B Northwest Native Expressions Oak Table Cafe Ocean Crest B&B Old Consulate Inn Olson's Resort and Marina Olson's Vacation Cabin Olympak Llamas Olympic Bus Lines Olympic Game Farm, Inc. Olympic Music Festival Olympic National Forest, Hood Canal Ranger District Olympic National Park Olympic Park Institute Olympic Peninsula & Puget Sound Islands Winery Loop Assoc. Olympic Peninsula B&B Association Olympic Printers Inc. Olympic Raft & Kayak Olympic Stationers, Inc. Olympic Suites Inn Olympic View Publishing Co., LLC OlympicGetaways.Com Pacific Inn Motel Pacific Office Equipment Pay & Save Coffee Shop Peabody Creek RV Park Pen Print, Inc. Peninsula Daily News Pennco Transportation Peter Black Real Estate Pondicherri Port Angeles Chamber of Commerce Port Angeles Crab House Port Angeles Distributing Co. Port Angeles Fine Arts Center Port Angeles Inn Port Angeles Light Opera Association Port Ludlow Resort & Conference Center Port Townsend Airways Port Townsend Chamber of Commerce Port Townsend Inn Portside Inn Puffin Adventures Charter Boats Quilcene Inn Rainbow's End RV Park Rainshadow Natural Science Foundation Ramada Limited Ravenscroft Inn B&B RE/MAX Fifth Avenue Red Lion Hotel - Port Angeles Red Ranch Inn Red Ranch Restaurant Rite Bros. Aviation, Inc. Royal Victoria Tours Inc. RV Parks Association of Clallam County Safeway-Port Angeles Salomon Smith Barney Sequim Bay Lodge Sequim Dungeness Valley Chamber of Commerce Sequim Safeway Sequim West Inn & RV Park Shadow Mountain Shadynook Cottage B&B Shipwreck Point Campground & RV Park Smokehouse Restaurant Sol Duc Hot Springs Resort Something To Crow About .., Sound Bikes & Kayaks South North Garden Chinese Restaurant Straitside Resort Sunny Farms Country Store Sunshine RV Park Super 8 Motel - Port Angeles The Beach House The Belmont The Bowman of Port Angeles B&B The Cape Motel & RV Park The English Inn B&B The Fern Gallery The James House Bed & Breakfast The Lost Resort at Lake Ozette The Palace Hotel The Tides Inn The Tudor Inn Three Crabs Restaurant Three Rivers Resort & Fish Guide Service Toad Hall English Bed & Breakfast Uptown Inn Victoria Express Passenger Ferry Virginia Mason Medical Center- Port Angeles Wal-Mart Wash burns General Store Washington State Ferries Welcome Inn Court & RV Wild Birds Unlimited Windermere Real Estate, Port Angeles Wooden Boat Foundation Yada's Cedar Log Homes ..~ ~~ I ~ .11\11 Special events and crazy special projects VCB staffers started "The Big Hurt" three years ago at the suggestion of local accommodations as a way to fill rooms in the off season. With close to 400 participants in 2000 and about 100 volunteers, we are on our way to reaching our goal of filling every accommodation for miles. Between participation fees and attracting athletes for the weekend (as well as earlier training visits by the participants), we believe the event generates about $50,000 for our economy. This event has grown about 20 percent a year. ~ " We also worked on cycling clinics and stage races in Sequim that ')(." , attnicted hundreds of bikers and ,<' spectators to our area. The "+impact of those efforts is l conservatively estimated at another $50,000. Mission Statement We are a professional sales, marketing and public relations organization committed to enhancing the' ecqnom'ic lYell-being of the North Olympic Peninsula by sell(ng the area as a desirable convention/visitor destination and working,dosely with other economic development and community organizations. "" ~~;. STAFF Rick Hert, Executive Director rick@olypen.com Kristi Agren, Tourism Marketing kristi@olypen.com Linnea Anderson, Office Administration travel@olypen.com EXECUTIVE COMMITTEE Diane Schostak, President Forks Chamber of Commerce Troy Woody, Vice President Red Lion Inn Sande Balch, Secretary Clallam Bay/Sekiu Chamber Pam Dahl, Treasurer Sol Duc Hot Springs Dave Morris, At Large Olympic National Park Steve Tharinger, At Large Clallam County Skip Jacobs Dungeness Golf Course .jg .s: .? ~"" ",'f/ <l 'J: i;;;;i BOARD MEMBERS Nancy Borino, Tourism Coordinator City of Port Townsend Erl Hanson Port Angeles Chamber of Commerce Sandra Ordorff Shadow Mountain Dave King Olympic Raft & Kayak Emily Westcott Red Ranch Restaurant Ed Murphy Manitou Lodge :..;~ ~ ii<~~ -r '!.;. ;fi " ~,.,~ CITY, COUNTY & EDC REPS Jim Hulett '" City of Port Angeles Rep ~ Bob Kilmer Forks City Council Pacific Pizza Donna Wilkie Makah Rep Tim Smith Port Angeles Chamber Rep City of Port Angeles Karen Rogers Economic Development Rep Bill Thomas City of Sequim Rep Pat McCauley Sequim Chamber Rep InsideOut Marketing 4)1 .; -1: J: ,4' l;;.: North Olympic Peninsula VIsitor & Convention Bureau P.O. Box 670 Port Angeles, WA 93862 Every day at the VCB ~, , " , ~ We answered the toll-free line about 4,035 times and spent 123 hours counseling /j people on how to travel to our area, how to ... spend their time and where to stay. Email ~ 11-==.~"''' r~uests were up, a~ 1,321.for the ~ear, but r--......... .., Lmnea Anderson stIll receIves matI requests from potential visitors and students seeking help with school projects. We sent out 60,000 visitor guides to Pacific Northwest visitor centers, trade shows and through the mail. The VCB maintains two different web sites, www.olympicpeninsula.com. the gateway to our members and to the communities in our area. We also maintain www.bighurt.org, which serves the multi-sport event we host. The Internet continues to be our best source of advertisement. We also gather together VCB members and local tourism operators monthly for Tourism Tuesday, which is great chance to network and learn more about what is going on in our industry. :'?:<' ----,.--~.:;J1.. '--~-------7- -- ofl,' PRSRT STD U.S. Postage PAID Port Angeles WA Permit No. 17 j j I I Meetings and Conventions - or the art of getting people to come here in groups ~ As the title suggests, Visitor and Convention Bureau, we like to work with groups who are interested in meeting here for conventions, family reunions, wed- dings, class reunions, car clubs and sporting tournaments. We also work with local businesses and residents to attract their state association or service club. In 2000, we generated about 1,150 room nights through conference and event partici- pants generating approximately $172,500 in visitor impact. . . . CALL TO ORDER- REGULAR MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: CEREMONIAL MATTERS/ PROCLAMATIONS: WORK SESSION: Meeting with Port of Port Angeles Commissioners Valley Creek Estuary Update CITY COUNCIL MEETING Port Angeles, Washington February 20, 2001 Mayor Doyle called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. In the absence of Chairman Waud, Commissioner Beckman called the special meeting of the Port of Port Angeles Commissioners to order at 6:00 p.m. Members Present: Mayor Doyle, Councilmembers Campbell, Erickson, Wiggins, and Williams. Members Absent: Councilmembers Hulett and McKeown. Port Commissioners Present: Commissioners Beckman, Beil, and Waud. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, L. Haehnlen, M. Connelly, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, A. Broussard, S. McLain, T. Smith, D. Barnes, and T. McCabe. Port Staff Present: Acting Director Boddy, D. Hagiwara, C. Schuck, and K. Sweeney. Public Present: L. Lee, K. Duncan, L. Beil, T. Beil, B. Philpott, T. Harmon, J. Harmon, R. Gerberding, P. Walker, J. Melton, L. Ruddick, and J.P. Peterson. The Pledge of Allegiance to the Flag was led by Mayor Doyle. None. Meeting with Port of Port Angeles Commissioners: Valley Creek Estuary Update: The Port of Port Angeles Commissioners, Councilmembers, and staff members were introduced, after which Manager Quinn ~tated the joint meeting between the Port and City was being held to discuss various waterfront issues in an effort to proceed with a focused direction for planning purposes. Parks & Recreation Director Connelly provided a brief overview of the status of the Valley Creek Estuary Project, and a blueprint was offered as a visual aid to show how the project is at a 60-70% completion point. With additional City help, the project should be complete by September 1, 2001. An update was given on completed and pending aspects of the project, and Dave Hagiwara explained, with the help of visual aids, how the land in the estuary has been moving and evolving on its own which is a desired outcome by the Department ofFish & Wildlife. Mr. Hagiwara further explained the substance of the mitigation efforts, noting that the Port had received credits from - I - 13 CITY COUNCIL MEETING February 20, 200 1 FINANCE: Purchase of Police Patrol Vehicles LATE ITEMS TO BE PLACED ON TIDS OR FUTURE AGENDA: FINANCE: (Cont'd) Water Materials Bid CONSENT AGENDA: CITY COUNCIL COMMITTEE REPORTS: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: Solid Waste Ordinance Ordinance No. 3075 16 J. Police Patrol Vehicles Mayor Doyle summarized the memorandum submitted by Chief Riepe on the matter of purchasing three new police vehicles. Chief Riepe stated that the City preferred to . purchase the vehicles locally, noting that these particular vehicles are less expensive to operate. After further brief discussion, Councilman Campbell moved to authorize the Polic~ Department to accept the bid from Bill Koenig Chevrolet for the purchase'ofthree 2001 Chevrolet Impalas in the amount of $59,016.00 plus sales tax. Councilman Williams seconded the motion, which carried unanimously. Councilman Wiggins asked for a report on how City expenses are controlled at the departmental level and at what point does the City Manager review the overall expenses. Manager Quinn and Director Ziomkowski stated this report would be available at the next meeting. 2. Water Materials Bid Mayor Doyle summarized the memorandUm submitted by Director Cutler regarding the Water Utility materials bid. After limited discussion, Councilman Campbell moved to authorize the Public Works & Utilities Department to purchase Schedule A from H.D. F~wler, Schedule B from U.S. Filter and Schedule C from Familian N.W. Councilman Wiggins seconded the motion, which carried unanimously. Brief discussion centered around certain items included in the Check Register, after which Councilman Wiggins moved to accept the Consent Agenda, to include: 1) City Council minutes of January 16,2001 regular meeting; and 2) Check Register - February 12,2001 in the amount of $1,407,426.14. The motion was seconded by Councilman Williams and carried 5 - 0, with Councilmember Erickson abstaining due to absence from the January 16, 2001 meeting. . Councilmembers Wiggins and Williams had no report. Councilman Campbell commented on the Olympic Air Pollution Control Authority Board meeting, at which time discussion was held on the environmental impact of diesel generators. Councilman Campbell also attended the A WC Legislative Conference. Councilmember Erickson attended the American Planners Association meeting. '. Mayor Doyle attended a Foster Parent Recognition function, which was held in honor of 31 different foster parents. Solid Waste Ordinance Mayor Doyle summarized the Ordinance submitted by the Public Works & Utilities, an item that had been reviewed by the Utility Advisory Committee. With the use of a Power Point format, Public Works & Utilities Director Cutler outlined why the Solid Waste Ordinance needed to be modified, the development and changes, impacts to residential and commercial customers, enforcement, and proposed publicity. Director Cutler examined what would happen to yard waste without the burn ban and smaller containers. Director Cutler summarized for the Council a 45-day curbside test on removing plastics from yard waste, which proved to be a success. Several commercial organizations have offered to take the unwanted larger material. The use of plastic bags will be prohibited, as it adds $20,000 a year to subtract the plastic from the yard waste refuse. Councilman ./~~'\ Campbell inquired about the use of biodegradable bags, and Director Cutler indicated that particular type of bag still takes a substantial amount of time to compost. The - 4- . . . ORDINANCES NOT REQUIRING PUBLIC HEARINGS: (Cont'd) Solid Waste Ordinance Ordinance No. 3075 (Cont'd) RESOLUTIONS: Labor Agreement Modification ~j:~~~~t~~~~AAf~~{'L,!,;:":;~~i~Kff~~\~ CITY COUNCIL MEETING February 20,2001 containers and bundles ihat would be allowed by the Ordinance should be a sufficient means to dispose of yard waste. Councilman Wiggins commended Director Cutler for having input from the public so far in advance. Director Cutler stated that the community had been very supportive of the Recycling Center not accepting plastic bags. Mayor Doyle read the Ordinance by title, entitled, ORDINANCE NO. 3075 AN ORDINANCE of the City of Port Angeles, Washington, revising the City's solid waste collection and disposal regulations and rates relating to recycling and yard waste and amending Ordinance 231 7 as amended, Ordinance 2630, and Chapters 13.54 and 13.56 of the Port Angeles Municipal Code. Councilman Wiggins moved to adopt the Ordinance as read by title. Councilmember Erickson seconded the motion, which carried unanimously. Labor Agreement Modification: Mayor Doyle summarized the resolution submitted by Manager Quinn in regard to giving the City Manager authorization to make modifications to existing labor agreements that are either non-economic or have a one-time impact ofless than $5,000. Manager Quinn explained that operational issues can and do arise during the life of a labor agreement. In order to decrease the number of such issues brought to the bargaining table and to provide a more timely resolution of the issues, it would be helpful to be given the ability to approve modifications as quickly as possible. Mayor Doyle asked for an example of such a modification, and Manager Quinn stated that in many cases there are training issues that management feels are required training opportunities, but they may involve overtime or some type of expense. Councilman Campbell stated that these are the issues that may result in grievances, and he felt there should be a way to modify the contract. . He felt this was not an unreasonable thing to do. Mayor Doyle stated that this was the first he had been made aware of the situation, and he suggested the Council may need more time to study the matter. Chief McKeen informed the Council that the Fire Department brought this issue forward, as there are many issues that arise in the Fire Department that either get left behind or weighed down in the negotiation process, such as hours and working conditions. He felt this resolution would be beneficial to the City. Mayor Doyle read the Resolution by title, RESOLUTION A RESOLUTION of the City Council of the City of Port Angeles, Washington, delegating authority to amend collective bargaining agreements with regard to provisions that are either non-economic or have one-time only cost of no more than $5,000. Councilman Williams expressed the desire to have more time to review the proposal, as it was unclear as to the limits and boundaries on the ability to use the $5,000. Councilman Wiggins moved to table the Resolution. Councilman Campbell seconded the motion, which carried unanimously. Mayor Doyle stated that this issue should be scheduled for the next City Council meeting. - 5 - 17 CITY COUNCIL MEETING February 20, 2001 OTHER CONSIDERATIONS: Transfer of School District Lot to North Olympic Home Builders WPAG Contract Government and Education Channel Advisory Committee Appointment Board Of Adjustment Appointment 18 J. Transfer of School District Lot to North Olympic Home Builders Mayor Doyle summarized the memorandum submitted by Attorney Knutson pertaining to the proposed transfer of property from the Port Angeles School District to the North . Olympic Home Builders Association. Attorney Knutson stated that this project was related to the recent vacation of the Crossover, and approval has been recommended by the Real Estate Committee. Various members of the Home Builders Association were introduced to the Council. Brief discussion ensued, and Attorney Knutson further clarified the importance of the transaction, as the property is to be used for the Future Homebuilders cooperative program. The City was asked to be involved in that legal requirements for surplusing property are much less cumbersome and tirneconsuming than those governing properties being surplused by the School District. Attorney Knutson added that the appraised value was reduced due to the cost of utilities. Councilman Williams moved to authorize the City Manager to execute the appropriate documents to facilitate the transfer of property from the Port Angeles School District to the North Peninsula Building Association for the use in the Future Homebuilders cooperative program. Councilman Campbell seconded the motion which carried unanimously. 2. Western Public Agency Group Contract Mayor Doyle summarized the memorandum submitted by Public Works & Utilities Director Cutler regarding the agreements with Marsh, Mundorf, Pratt and Sullivan, and EES Consulting for WP AG services. Power Systems Deputy Director McLain itemized the various benefits of belonging to WPAG, noting that the City's cost for a membership share has been decreased somewhat over the previous year. DiScussion. followed on whether the BP A is looking at the impacts of rate increases on the various utilities. Mr. McLain indicated the BP A is aware that some businesses cannot survive these significant rate increases. Bonneville is currently conducting a market impact study. Councilman Campbell moved to authorize the Director of Public Works & Utilities to sign the agreement with Marsh, Mundorf, Pratt, and Sullivan, and the agreement with EES Consulting for WPAG services during the year 2001 for an amount not to exceed 510,000. Councilman Wiggins seconded the motion, which carried unanimously. 3. Appointment to Government and Education Channel Advisory Committee Mayor Doyle summarized the memorandum submitted by the City Clerk with regard to the proposed appointment of a citizen at large to the Cable TV Government and Education Channel Advisory Committee. Councilmember Erickson moved to appoint Dennis Bragg to the citizen at large position on the Cable TV Government & Education Channel Advisory Committee. Councilman Williams seconded the motion, which carried unanimously. 4. Appointment to Board of Adjustment Mayor Doyle summarized the memorandum submitted by Clerk Upton regarding the application of Bill Rinehart to fill a vacancy on the Board of Adjustment. Mayor Doyle commented that Mr. Rinehart is also a member of the Building Code Board of Appeals and the Lodging Tax Advisory Committee, and he asked if this would interfere with the . Board of Adjustment membership. Attorney Knutson stated that there should not be any legal problems. Manager Quinn stated some reasons and issues confronted when - 6- . . . Break Free Dump Day Reimbursable Work Agreement with Clallam County Ordinance No. 3076 INFORMATION: 0:11!\'>J~rX"J.!'Jii"~I~':;:',\*I'~ml~\:i.~ CITY COUNCIL MEETING February 20, 2001 trying to fill a Board or Commission vacancy. Councilman Williams moved to appoint Bill Rinehart to the Board of Adjustment for the unexpired term ending February 28, 2002. Councilmember Erickson seconded the motion, which carried unanimously Mayor Doyle recessed the meeting for a break at 8:45 p.m. The meeting reconvened at 8:55 p.m. 5. Free Dump Day Mayor Doyle summarized the memorandum submitted by Public Works & Utilities pertaining to the proposed Free Dump Day on April 29, 2001. Director Cutler itemized certain restrictions that would be put in place because of past abuse of the program. Councilman Wiggins moved to approve the annual Free Dump Day at the City's Landfill for April 29, 2001 with the proposed restrictions. Councilman Williams seconded the motion, which carried unanimously. Manager Quinn added that the participants in the Free Dump Day are asked to bring a donation of $5.00 or 6 cans of food for the Food Bank. 6. Reimbursable Work Agreement with C/al/am County Mayor Doyle summarized the information submitted by Public Works & Utilities Director Cutler with regard to adopting an ordinance for Clallam County to perform work in the areas of chip sealing, striping and bridge inspection in the City. Director Cutler stated the previous work agreement expired December 31, 2000. . Mayor Doyle read the Ordinance by title, entitled ORDINANCE NO. 3076 AN ORDINANCE of the City of Port Angeles, Washington authorizing the execution of an agreement with Clallam County for the performance of work on City streets and repealing Ordinance No. 2922. Attorney Knutson stated there is an RCW requiring the adoption of an ordinance to allow this type of working arrangement. Councilman Williams moved to adopt the Ordinance as read by title. Councilman Campbell seconded the motion, which carried unanimously. City Manager's Report: Manager Quinn reviewed various upcoming meetings; he noted the Council will be asked to interview applicants for the Planning Commission during the Work Session portion of the next Council meeting. Councilman Wiggins referenced the March 5, 2001, meeting on the Gateway Project, and he felt the Councilmembers may wish to attend. The meeting will be scheduled to be held in the Council Chambers to accommodate those in attendance. Manager Quinn reviewed the Cable TV survey that will be sent out to the public to gauge feedback about issues regarding cable programming and satisfaction. Manager Quinn directed attention to the information included in the packet regarding the Francis Street Project. Mayor Doyle questioned the reason for scaling back the project, and Director Connelly responded the project was scaled back in the area of landscaping along the edges of the park that could be beautified over time. Mayor Doyle asked if there was a need to have fmal approval from Councilmembers on the project for the bidding process to take place. Attorney Knutson stated that there was no requirement to formally accept the project design. Mayor Doyle asked the Council- - 7 - 19 20 CITY, COUNCIL MEETING February 20, 2001 INFORMATION: (Cont'd) EXECUTIVE SESSION: ADJOURNMENT: members if there was acceptance of this project, and the Council agreed by consensus to accept the project. Brief discussion was then held on various reports and meeting minutes contained in the . Information Agenda. None. The meeting was adjourned at 9:20 p.m. Becky J. Upton, City Clerk Larry Doyle, Mayor . . - 8 - . . . ~ORTANGELES WAS H I N G TON, U. s. A. CITY COUNCIL MEMO DATE: March 1,2001 TO: MAYOR DOYLE AND CITY COUNCIL FROM: Mike Quinn, City Manager~ SUBJECT: Resolution Authorizing the City Manager to Approve Modifications to Existing Labor Agreements (Revised memo) Summary: Staffhas prepared two separate resolutions for the Council to consider, each designed to: · Decrease the number of non-economic issues brought to the bargaining table during formal labor agreement negotiations, and · Provide a more timely resolution of contract interpretation issues that are part of an existing labor agreement. Both resolutions encourage staff to address issues as they surface, allowing the City Manager the ability to approve modifications to existing labor agreements within reasonable limitations. Recommendation: Adopt one of the two attached resolutions: · The first resolution (Attachment A) allows the City Manager to approve changes to labor agreements which are non-economic. · The second resolution (Attachment B) allows the City Manager to approve changes to labor agreements which are non-economic or have a one-time only economic impact of less than or equal to $5,000. Note: During the last City Council meeting, concern was raised regarding a resolution which allowed the City Manager the ability to modifY existing labor agreements when those modifications could have an economic impact of up to $5,000. One concern was the possibility of approving multiple economic items, each less than $5,000, together exceeding the resolution's intent of no more than $5,000. Staff discussed the concerns and added an additional resolution for the Council's consideration. The new resolution (Attachment A) allows the City Manager to only approve modifications to existing labor agreements when those modifications are non-economic. The original resolution (Attachment B) is also included for consideration. This resolution allows the City Manager to approve changes to existing labor agreements which are non-economic or have a one-time only economic impact of less than or equal to $5,000. 21 Mayor Doyle Page 2 March 1,2001 . Background: The City's labor agreements are negotiated with Union represented employees every two to three years, depending upon the terms of the contract. During these negotiations, it is common to have numerous issues on the table, many of which are operational and have no, or minimal, economic impact to the city. Many of these issues brought to the table could have been resolved throughout the year, but instead, were delayed until the start of formal labor agreement negotiations. Postponing discussions not only adds considerable time to the formal labor agreement negotiation process, but could also delay implementation of a procedure or practice designed to improve the effectiveness of a department. It is the Staffs goal to address these issues as they surface, working with the City's unions to make modifications to the labor agreements as needed. As each of the City's labor agreements are ratified by both the City Council and by the labor unions, staff recognizes that any change to an existing labor agreement must be approved by the City Council along with the appropriate labor union. To decrease the number oflabor agreement modifications that would be taken to the City Council, the Council could authorize the City manager to approve modifications based on the following reasonable limitation contained in either one of the attached resolutions: . The modification of the existing labor agreement is non-economic (Attachment A). . · The modifications of the existing labor agreement have a one-time economic impact of less than or equal to $5,000 (Attachment B). Either one of the resolutions will allow the City Manager the ability to approve changes to a labor . agreement during the terms of that agreement. All new labor agreements will still require approval by the City Council. It is the goal of this proposed change to improve the efficiency in negotiating labor agreements and to allow for a more timely resolution of contract interpretation issues that are part of an existing labor agreement. DM/cw Attachments: Resolution A Resolution B . 22 .',""'.'""','""l."-.i~.. ""'. "'";'<'," ';>;C-;':">i')I'::"':.V :'OY::~~': {%.~tt'l',; Attachment A RESOLUTION NO. . A RESOLUTION of the City Council of the City of Port Angeles, Washington, delegating authority to amend collective bargaining agreements with regard to provisions that are non-economic. . WHEREAS, RCW 35A.ll.0 I 0 provides that the City may contract and be contracted with by and through the City Council; and WHEREAS, the City Council enters into union contracts, also referred to as collective bargaining agreements, with the unions representing City employees pursuant to Chapter 41.56 RCW;and WHEREAS, given the typical multi-year duration of collective bargaining agreements, authorizing the City Manager to approve limited modifications will facilitate more efficient and effective labor relations between City management and unions; and WHEREAS, it is in the interest of efficient administration of City government to set forth the terms for delegating authority to the City Manager to amend collective bargaining agreements so long as such authority is within certain well defined limits; NOW, THEREFORE, BE IT RESOL VED by the City Council ofthe City of Port Angeles. as follows: The City Manager is hereby authorized to negotiate and execute amendments to collective bargaining agreements between the City and the labor unions representing City employees, provided that such amendments shall be limited to provisions which are non-economic. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the _ day of , 2001. MAYOR . ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: Craig D. Knutson, City Attorney P,\ORDINANCES&RESOLUTIONS\R2001.02A.wpd March 1, 2001 . -1- 23 Attachment B RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, delegating authority to amend collective bargaining agreements with regard to provisions that are either non-economic or have a one-time only cost to the City of no more than $5,000. . WHEREAS, RCW 35A.II.0 I 0 provides that the City may contract and be contracted with by and through the City Council; and WHEREAS, the City Council enters into union contracts, also referred to as collective bargaining agreements, with the unions representing City employees pursu~nt to Chapter 41.56 RCW;and WHEREAS, given the typical multi-year duration of collective bargaining agreements, authorizing the City Manager to approve limited modifications will facilitate more efficient and effective labor relations between City management and unions; and WHEREAS, it is in the interest of efficient administration of City government to set forth the terms for delegating authority to the City Manager to amend collective bargaining agreements so long as such authority is within certain well defined limits; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port An. as follows: The City Manager is hereby authorized to negotiate and execute amendments to collective bargaining agreements between the City and the labor unions representing City employees, provided that such amendments shall be limited to provisions which are either non-economic or have a one- time only cost to the City of no more than $5,000. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the _ day of , 2001. MAYOR ATTEST: Becky 1. Upton, City Clerk APPROVED AS TO FORM: Craig D. Knutson, City Attorney F:\ORDINANCESkRESOLUTIONS\R2001.02.wpd . March 1. 2001 24 -1- FORTANGELES WAS H I N G TON, U. S. A. CITY COUNCIL MEMO DATE: March 6, 2001 FROM: MAYOR DOYLE AND CITY COUNCIL Dan McKeen, Fire Chief U. I TO: SUBJECT: Earthquake of February 28, 2001 and Related Declaration of Emergency Summary: Port Angeles experienced a major earthquake on February 28. During this earthquake, property damage occurred within the City, with preliminary estimates exceeding $250,000. In order to be eligible for Federal Emergency Management assistance, the City needs to declare a state of emergency. Recommendation: It is recommended that the City Council adopt a resolution declaring a state of emergency as a result of the February 28,2001, earthquake. Background: As you are aware, most of western Washington felt a major earthquake (magnitude 6.8) on February 28 at approximately 11 a.m. The earthquake's epicenter was located west of Steilacoom, with immediate physical damage reported as far as Olympia in the south and Seattle in the north. This earthquake was named the Nisqually Earthquake. At 1 :30 p.m. the same day, the Governor signed a proclamation of emergency. On February 28, another earthquake (magnitude 1.2) occurred near McNeil Island with an additional earthquake (magnitude 1.7) occurring in the vicinity of Bel fair. On March 1 and 2, both aftershocks and additional earthquakes were reported, two of which occurred in Bremerton. None of the aftershocks or additional earthquakes exceeded a magnitude of 3.4. State-wide casualties from the Nisqually Earthquake exceeded 400 -- one confirmed dead from a heart attack and 407 injured. Four individuals remained hosp~talized, three of which are satisfactory and one critica1.l There were no reported injuries from the aftershocks or additional earthquakes. Preliminary state-wide damage estimates for the Nisqually Earthquake are in excess of $1 billion. 1 As of March 5. Mayor Doyle Page 2 March 6, 2001 Port Angeles did not have any reported casualties as the result of the Nisqually Earthquake. Port Angeles did, however, sustain over $250,000 in damages. The damage occurred at Peninsula College, both in the College's Little Theater and auto shop. In order to receive eligibility for Federal Emergency Management assistance, each local government needs to declare a state of emergency. This declaration also allows local governments the ability to take immediate actions to repair buildings or public infrastructures that are vital to the public's welfare, bypassing the often time-consuming procedures and formalities prescribed by law (excepting mandatory constitutional requirements). Note: The Fire Department is using this recent experience to re-evaluate its Earthquake Response, and Recovery Plan. In addition, the Fire Department along with the County will be formulating a more extensive short term and long term plan for educating the areas residents in disaster preparedness. DM/cw Attachment: Map .. " ~-t-" RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, declaring a state of emergency and authorizing the exercise of emergency powers and the request of state and/or federal emergency relief and/or assistance. WHEREAS, beginning at approximately 10:54 a.m. on Wednesday, February 28, 2001, much of Western Washington, including the City of Port Angeles, experienced a strong earthquake that had a magnitude of approximately 6.8 on the Richter Scale; and WHEREAS, the said earthquake damaged property, both public and private; and WHEREAS, shortly after the earthquake, Governor Locke proclaimed a state of emergency to exist in Western Washington and directed that the procedures in the Washington State Comprehensive Emergency Plan be implemented, which plan includes the City of Port Angeles Response, Mitigation, And Recovery Plan. In addition, Clallam County's Emergency Management Director has prepared a '" proclamation of emergency for Clallam County, which proclamation is anticipated to be adopted by the Board of County Commissioners at its n~xt scheduled meeting; and WHEREAS, the severity and magnitude of the current earthquake disaster is believed to be beyond the community's recovery capability and budgeted finances to the extent that state and federal resources may need to be requested; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles as follows: 1. There is, and has existed since February 28, 2001, a state of emergency in the City of Port Angeles due to a severe earthquake; 2. The actions taken, and to be taken by the Mayor, the City Manager, and authorized designees, are reasonably necessary to reduce the potential threat to life and property; -1- ~ ... 3. The City Manager is authorized to request state and/or federal emergency relief and/or assistance and to enter into contracts as necessary and appropriate to protect the health and safety of property or persons and to exercise said authority without time-consuming procedures and formalities prescribed by law (excepting mandatory constitutional requirements). 4. A copy of this resolution shall be delivered to the Governor of the State of Washington and to the Board of Clallam County Commissioners. To the extent practical, copies of this resolution shall be posted at the City's regular location for official notices and shall be made available to the members of the local news media and the general public. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of March 2001. MAYOR ATTEST: APPROVED AS TO FORM: Becky J. Upton, City Clerk Craig D. Knutson, City Attorney F:\ORDINANCES&RESOLUTlONSIR2000-16 -2- L . . DATE: To: FROM: SUBJECT: FORTANOELES WAS H I N G TON, U. S. A. CITY COUNCIL MEMO MARCH 6,2001 MAYOR DOYLE AND CITY COUNCIL Parks, Recreation and Beautification COmmiSSionl~. PARK BOARD VACANCY APPOINTMENTS Summary: Three vacancies on the Park Board need to be filled. The Commission conducted interviews of potential candidates at their regular meeting held on February 15,2001. The filling ofthese two vacancies will ensure that the Commission has a quorum to conduct business at there regular March meeting. C:\COUNCIL.park board vacancies.WPT 25 . . . 26 . . . FORTAN ELES WAS H I N G TON, U. S. A. CITY C 0 U N elL M E M 0 DATE: To: FROM: SUBJECT: MARCH 6, 2001 MAYOR DOYLE AND CITY COUNCIL YVONNE ZIOMKOWSKI, FINANCE DIRECTOR YEAR END 2000 BUDGET STATUS REpORT I am pleased to present the budget status report for the General Fund and utilities for the year ended December 31, 2000. This report shows the results of City operations as compared with the amended budget and prior year actuals. This report is segregated by fund and shows revenue by source and expenditures by object. General Fund Summary As of December 31, 2000, General Fund revenues amounted to $12,966,894, expenditures totaled Add: $13,662,929 and Revenues included $1,633,735 transfers from reserves to support capital projects, catching up with the equipment replacement fund, and increasing Contingency Fund. As compared to amended budget the actual overall financial operations resulted in almost $600,000 of additional funds. According to the City's Operating Budget Policy, the City Council may to allocate these funds to capital projects in the year 2001. Table I shows a summary of revenues, expenditures, and fund balance for the General Fund. 1999 Beginning Fund Balance 4,165,555 12,339,063 Less: Operating Expenditures Transfers to Econonic Developrrent Transfers for QPprojects Transfers to Equiprrent Services Transfers from reserves to CIP Transfers from reserves to Eq. Servo Transfers from reserves to Contingency Reserved for future Initiatives 12,138,620 50,000 100,000 29,335 1,000,000 o 150,000 o 2000 3,036,663 12,966,894 11,717,617 25,000 345,000 151,577 650,000 438,735 200,000 135,000 2000 Arrended Budget 3,036,663 12,574,131 11,917,389 25,000 345,000 151,577 650,000 438,735 200,000 135,000 Increase (decrease) in Fund Balance (1,128,892) (1 ,288,570 Ending Fund Balance. 3,036,663 1,748,092 T696,035) 2,340,628 27 General Fund revenue by major revenue source is depicted in Table II. Overall, actual revenues exceeded the amended budget by $392,763 or 3% and show an almost 5% increase over the 1999 level. Tax revenues,.which comprise 60% of the General Fund budget and include property, sales and use, u~lity, telephone, , telecable, leasehold,' and gambling taxes, came in at 2.8% or $209,984 over budget aIld 7.3% ($566,125) over 1999 levels. This significant increase over the 1999 budget )'ear was attributed to higher utility taxes and property taxes. . Revenues 8 7 M 6' i "I 5 : 4 o 3 'n s 2 '.' Collection of property taxes, the largest source of revenue, was, slightly below the levy as a result of uncollectible accounts. In comparison to the prior year, this revenue increased by $267,402 or 11 % as a result of retiring the City Hall portion of a 1992 Refunding and G.O. Bond and allocating this portion.ofthe property tax to the General Fund. During the past two years,' the City increased the property tax levy' by only 0.85% in 1999 and 1.4% for the year 2000. o j..e'O i-~'O ~e'O . c,e'O ~e'O ~e'O' ;\~ , . ~~00 ~~ <?e~ N.e~ se~~ ~e~-v N.e~ ~e~'O s v ' e'O ~ ~~ <(0.13 'o~ ~ ~o ~'O <(0.13 ~~~~s se~e \).c,e~s ~~~e~ G~~~<'tJe'O ~\~e'O 0~~~eo <(0.13 , o~e ~ (\'00 ~e~(j ~. ~ . Sales tax, the second largest source of revenue in the General Fund, is the revenue we monitor very closely (Schedule A). Since sales, tax is very sensitive to economic conditions, and highly unstable, it is also difficult to predict. The higher than estimated receipts were surprising, especially as 1999 receipts came in below budget and prior years. Unusually high receipts for November 2000 (September sales) accounted for this difference. Mostly higher than usual retail, wholesale, and automotive sales attributed to this increase. However, as shown on Schedule AI, construction still has a decreasing trend. Utility taxes increased more than 14% as compared to 1999, and the actual collection excee~ed budget by 6% or $113,725. This increase is a direct result of an 8% water and wastewater rate . increase, but the major increase is attributed to the closing of Daishowa' s hydroelectric plant in 28 . .. .. March 2000, which increased the mill's electric utility consumption by more than 40%. Not knowing exactly how much revenues would increase, and taking a conservative approach, we underestimated Daishowa's power usage. . . Collection of other revenues also exceeded expectati6risJLe~sehold tax was unusually high. Telephone taxes are still growing due to the P9Bphlrity of cellular phones. Intergovernmental revenues, which are mostly state shared revenb~~;\grants, and local agencies participating in our'. programs, were $70,561 over budget. Unanticipated r~venue from the Olympic Peninsula Narcotics Enforcement Team (OPNET) accounted for mast of the variance. Higher than anticipated interest revenue was the result of market valuation of the City's Investment Portfolio as of December 31, 2000. Since interest rates were decreasing, the City recognized unrealized gains on its investments. Miscellaneous revenues include interest and penalty on delinquent bills, City Pier moorage, Ediz Hook and other leases,' donations, reimbursement for court time for Police Officers, and other one time revenue. An interesting situation occurred with fines and forfeitures. With a conservative approach to estimating this revenue, and with jail cost increasing by 35% compared to prior year, this reyenue came iil at 11.3% below estimates and only 5% above last year's receipts. This is another category we are monitoring very closely. Expenditures General Fund operating expenditures were $11;717,617 and were supplemented by. a $521,577 transfer to other funds and a $1,633,735 transfer out from reserves. Operating expenditures were 1.7% or $199,772 below the budget. Salaries and benefits, representing almost 73% of the operating budget, were 2.3% or $197;268 below budget. This surplusis attributed to several short -:-term vacancies in most of the departments, and to allocating some Public Works labor expenses to capital projects. Unfinished projects in Parks, Police, and Public Works Departments resulted in a surplus in the capital. outlay budget. Weare recommending t~at this surplus be reappropriated for these purp<?ses in 2001. We are very concerned over the growing cost of the. county jail. In 2000, contributions to the county jail increased by 35% as compared to 1999; A letter from the Sheriff's Department indicates that prisoner confinement daily fees for 2001 will be increased by an. additional 24%. M i o .n s o ~ eene\i\S se~ices {{\('I\en\a\. ~ Qu\\a'i ~e(S out ~e(Sonn~ cna(ges \O( \n\e(go\Je ca?\\a: ,(ans . SU??\ieS '29 We are very pleased that in the year 2000 we were able to designate $345,000 in additional funds for capital improvement projects. Of this money, $200,000 is designated for the Carnegie' Library project, bringing the total amount reserved for this project to $700,000. Overall, during 1999 and 2000 almost $2.1 million was designated for capital improvement projects. . At the same time, a transfer of $438.735 to the Equipment Service Fund was budgeted to catch up with equipment replacement. Also, the City Council approved the creation of a Contingency,' Fund, and during 1999 and 2000 transfers to this fund were made in the amount of $ 150,000 and $200,000 respectively. Over the years 1991-1998, fuqd balances in the qeneral Fund have consistently improved as a result of a very controlled approach to both revenues and expenditures. In 1999 and 2000, the City Council designated $1,650,000 toward capital improvement programs, reserved $350,000 in the special contingency fund, and transferred .. $438,735 to the Equipment Services ~ 3 Fund to bring replacement costs !i current. With an almost $1.3 million budgeted decrease in the fund balance, the 2000 General Fund reserve or fund balance decreased to $1,748,092 and represents 14% of current expenditures. Reserves 5 General Fund, , !Jnreserved Fund Balances 4 . 2 19~2 " 1996 1998 2000 Est 1999 2001 Budget 1994 1993 1995 1997 Since the actual revenue collection was more than budgeted an~ spending was less than budgeted, this created additional funds of almost$0.6 million, which the City Council can designate for future capital projects. ' , ; Other Funds Hotel/Motel Tax (Schedule B) Lodging tax receipts for 2000 were $370,000, exactly atthe budgeted level. Expenditures were $318,699 or $58,561 below budget. Some of the marketing budget and agency allocation funds were not spent. It is interesting to note that with $363,916 spent for a marketing program during the past two and a half 30 400 300 ~ " Ill" 'I iii. , . III "C ; 200 III ~ o ~ 100 " I .. III I .. ,. . III iii . I' II ..u II\'Ii D, 1996 1997 1998 1999 2000 o [--- ! . . . years, the net revenue increased by 2.5% in 1999 and 2.2% in 2000. The total increase in revenue during these two years'was $8,558. In comparison, the revenue increase in 1997 as,' compared to 1996 was 4%, or$6,832. Street Fund Expenditures of $1,288,998 s were $44,747 or 3.3% below, budget. There wer,e some savings in personnel costs and supplies. For the second year, more than $328,000 was designated for the street pavement restoration program and $44,179 for the Centennial Trail. Since the outside funding'sources for the Street Fund are relatively static, there is pressure on local funding sources to maintain the service level support or be forced to reduce services. While we were fortunate to levy the second 1/4% Real Estate Excise tax in 2000, the proceeds will need to be dedicated to the 8th Street reconstruction project. Debt payment of more than $100,000 annually will utilize this revenue for the next 20 years. If we wish to begin other major street projects, we will likely' have to seek voter approval for a special street levy or a similarly approved source in the future. Actual 2000 revenues for Street ,were $1,237,386, $33,190 or 2.7% over the amended budget. Additional interest distribution and restitution for damages accounts for this differe~ce. ' Economic 'Development Fund T h o u s ,.a' n d , 1999 2000 Actual 2000 Budget " , Tbe expenditures in this fund, which was created in 1999 by transfers from the General Fund and utilities, were exactly on budget. The emphasis for this fund is upon generating results through economic development. The key is to channel funds to those activities with the greatest proqrise'of future 'economic return. Electric Utility' Electric Utility Revenue Sources Other 4% B'oth revenues and expenses in the Electric Utility Fund were over budget, largely as a result of underestimating power consumption and power , purchases for the Daishowa Mill. ," This was also the reason for , Residential 31% Industrial 45% :31 higher utility and excise taxes. There are several capital projects, such as 1(1h Street and "0" . Street reconstruction~Laurel Street rebuild, and Ediz Hook OH-.UG conversion, which are deferred to years 200 1 and 2002. Utilities usually have a flexible budge and are analyzed to ensure that revenues are adequate enough to pay' expenses' and fund smaller capital projects. With more than $7 million in unreserved cash balance and $1.7 million designated for rate stabilization, it would seem that this fund is very stable. Unfortunately, with the current 'energy crisis and possible triple digit BP A rate increases in October 2001, stability of this fund is questioned. Electric Utility Expenses Personnel 5% Capital projects 2% Therefore, rate increases are unavoidable. Large capital projects duI;ing the past four years contributed to increased ~ater and wastewater rates in 2000,2001, and 2002. The cash balance is estimated at almost $3.7 million. . Additionally, there is $1,850,000 in a rate stabilization fund that is going to be used to minimize necessary increases in years 2000 - 2005. Solid Waste Fund' While Solid Waste operating revenue exceeded budget by 5.6% or $241,497, they were still 12.4% below last year's revenue. One of the reasons was a one. time revenue stream from the Rayonier demolition debris in 1999. Construction of the landfill cell expansion, which began in 1999, was continued in 2000 for a total cost of $1,635,437. The cash balance in Solid Waste is a healthy $3.1 million. Additionally, cash of $1.4 million and $1.3 million is reserved for landfill closure and post closure respectively. Personnel costs were 3% over 1999 and included the trading of a utility worker position for a superintendent position. Part-time help was also increased to help reflect the current workload. Supplies for the daily cover material in closing . the cell were overestimated and resulted in a $110,180 savings as compared with the budget. . 32 . Internal Services Funds . . This group includes Equipment Services, Information Technology, and the Self-Insurance Fund. All these funds operate on the basis of reimbursement and had reasonable cash balances necessary for operation at 2000 year-end. , r " Information Technology expenses were $32,489 below the amended budget. All the reserves and surplus in this fund are designated for the future replacement of the financial operating system. Self Insurance expenses were 7.1 % more than 1999 and 5.3% more than budgeted. The major overruns were in liability insurance and the medical and vision programs. We are self-insured for dental coverage and have traditionally had rates comparable to those obtained in the marketplace. However, this past year our claims increased by more than 23%. The Workers'. Compensation program, which is also self-funded, was 34% more than in 1999. The increase in the medical and vision plan reflected rate premium increases. Once again, with an almost 15% increase in liability claims, we analyzed the impact of going to first dollar coverage with WCIA rather than maintaining a $100,000 deductible. Because of the initial impact on the budget, we delayed this decision until the 2002 budget process. In the meantime, we will continue to analyze current coverage. Attached are the summaries of revenues and expenditures for other funds. 32A . . . 328 Variances ACtual %Of Actual vs. Amended Bud. 1999 Change Positive (Negative) $ % Revenues: Taxes 7,226,822 209,984 2.77 Licenses & Permits 165,442 (6,894 (5.36 Intergovernmental Revenues 594,613 70,561 16.92 Charges for Services 3,463,155 (2,765 (0.08 Fines & Forfeitures 268,904 (35,769 ( 11.25 Interest on Investments 200,717 59,698 24.82 Miscellaneous Revenues 119,006 82,948 95.11 Other Financial Sources (ROI) 59,200 Transfers -in 241,204 15,000 7.57 Total Revenues 12,339,063 392,763 3.12 Operating Expenditures by Object: * Personnel Benefits 8,409,155 197,268 2.26 * Supplies & Charges for Services 2,419,663 (3,566 (0.17 * Intergovernmental 94,988 (836 (1.05 . * Contribution to Pencom 411,650 * Contribution to County Jail 301,971 (72,572 (21.66 * Capital Outlay 501,193 79,478 31.81 Total Expenditures 12,138,620 199,772 1.68 other Financing Uses: Transfer to Economic Development 50,000 Transfers ti Equipment Services 29,335 Transfer for Street projects 100,000 Transfer for Carnegie Library Transfer for other Capitallmpr. projects Transfer from reserves to Contingency Fund 150,000 Transfer from reserves for equipment repl. Transfer from reserves for CIP projects 1,000,000 Reserved for future Initiatives or emergencie Total other Financing Uses 1,329,335 Total Outflow 13,467,955 199,772 1.46 Increase (Decrease) in Reserves {1,128,892 592,535 45.98 Beginning Fund Balance 4,165,555 Ending Fund Balance 3,036,663 Table I . General Fund Summary of Financial Activities For the Year Ended December 31, 2000 . 33 Table II General Fund . Summary of Revenues For the Year Ended Ended December 31,2000 Variances Actual Actual vs. Amended Bud. REVENUE SOURCE 1999 Positive (Negative) $ % !AXES Property Taxes 2,438,724 (7,981 (0.29 Sales Taxes 2,282,121 48,725 2.16 Utility Taxes - City Utilities 1,750,926 113,725 6.03 Utility Taxes - Non-City Utilities 1,809 264 37.71 leasehold Taxes 98,312 35,191 43.99 Gambling Taxes 84,374 834 1.04 Occupational Taxes 570,556 19,226 3.43 TOTAL TAXES 7,226,822 209,984 2.77 INTERGOVERNMENTAL Motor Vehicle/Mobile Home Excise Taxes 265,737 local Government Assistance Sales Tax Equalization Liquor Excise Tax 59,581 3,019 Liquor Board Profits 101,286 10,485 Border Patrol Impact Fees 2,738 735 Criminal Justice Entitlement 38,615 (5,190 (1 Other Intergovernmental 126,656 61,512 72.40 TOTAL INTERGOVERNMENTAL 594,613 70,561 16.92 Licenses & Permits 165,442 (6,894 (5.36 Charges for Services 489,825 3,964 0.96 Medic-1 Revenues 265,242 10,245 2.40 Fines & Forfeitures 268,904 (35,769 (11.25 Interest on Investments 200,717 59,698 24.82 Interfund Charges 2,708,088 Return on Investments (ROI) 59,200 Transfers-in 241 ,204 Miscellaneous Revenues 119,006 65,974 75.65 TOTAL GENERAL FUND REVENUES 12339063 377 763 3.00 . 34 1----- ------- Table III . General Fund Summary of Expenditures For the Year Ended December 31, 2000 HOTEUMOTEL TAX FUND SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31,2000 REVENUES Taxes - First 2% Taxes - Second 2% Interest on Investments TOTAL REVENUES . Actual 1999 Variances Actual vs. Amended Bud. Positive (Negative) $ % EXPENDITURES Charges & Services Intergovernmental (Allocation to Agencies) Marketing Debt Service TOTAL EXPENDITURES NET INCREASE/DECREASE IN FUND BALANCE FUND BALANCE 36 280 246 3,178 3,704 27,529 31 ,032 58,561 62,265 62,265 0.15 0.13 52.97 0.99 . I ----- . .J~~t~<1itf~}~:;:t~~~ :~;~1*t:::~~'~:~:;;';F\'~'~-:::C\~; . STREET FUND SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 Actual 1999 REVENUES Taxes (Property) Intergovernmental (Gas Taxes) Interest on Investments Grants Other Transfer from General Fund T.ransfer from REET #1 Transfer from Solid Waste Fund TOTAL REVENUES 430,000 426,087 25,228 12,947 4,763 100,000 100,000 100,000 1,199,025 .~: 'l~'<~ '. ,: , ,;,:~',. ',.. Variances Actual vs. Amended Bud. Positive (Negative) $ % (1,174 (2,336 18,627 (4,954 23,027 33,190 (0.27 (0.55 68.99 (4.34 230.27 N/ 2.76 EXPENDITURES . Personnel 524,009 17,845 3.43 Supplies 159,950 44,786 26.59 Charges & Services 242,541 (4,434 (2.15 Transfer to Equipment Services 63,095 Capital Outlay 3,623 (204 (2.04 Capital Improvement Projects 300,000 (13,246 (3.68 TOTAL EXPENDITURES 1,293,218 44,747 3.35 NET INCREASE/DECREASE IN FUND BALANCE (94,193 77,937 60.16 FUND BALANCE 495,757 77 937 .. 37 ECONOMIC DEVELOPMENT FUND SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 . REVENUES Interest on Investments Transfers from other funds TOTAL REVENUES 3,202 250,000 253,202 Variances Actual vs. Amended Bud. Positive (Negative) $ % YTD 1999 16,992 738.78 16,992 11.16 EXPENDITURES Personnel 73,736 (177 (0.23 Supplies 1,258 662 82.75 Charges & Services 70,849 (904 (1.03 Transfer to Electric Utility Rural Econ. Dev. Fund 50,000 TOTAL EXPENDITURES 195,843 (419 (0.19 NET INCREASE/DECREASE IN FUND BALANCE 17,411 FUND BALANCE 57 359 17 411 . 38 ! --- REAL ESTATE EXCISE TAX#1 . SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 REVENUES Taxes Interest on InVestments TOTAL REVENUES 113,861 19,703 133,564 Variances Actual vs. Amended Bud. Positive (Negative) $ % Actual 1999 16,278 2,040 18,318 14.15 9.27 13.37 EXPENDITURES Transfer to Street 100,000 N/ Debt Service 54,159 1,683 1.56 TOTAL EXPENDITURES 154,159 1,683 0.81 NET INCREASE/DECREASE IN FUND BALANCE (20,595 20,001 (28.28 . FUND BALANCE 437 656 20,001 5.45 . 39 PENcoM SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 Actual 1999 REVENUES Intergovernmental: * Other Agencies * General Fund 911 Revenue Interest on Investments Miscellaneous Revenues TOTAL REVENUES 446,054 411 ,650 63,848 3,915 1,386 926,853 . Variances Actual vs. Amended Bud. Positive (Negative) $ % 1,545 (1 ,163 (780 1,795 1,397 EXPENDITURES Personnel 827,166 638 Supplies 7,828 265 Charges & Services 64,487 (9,907 Capital Outlay 42,555 14,221 TOTAL EXPENDITURES 942,036 5,217 NET INCREASEIDECREASE IN FUND BALANCE (15,183 6,614 FUND BALANCE 79 641 6614 40 0.32 (0.70 (39.00 Nt 0.13 . .' _~J~~:It~:;!Jtf:'l"!O\:!!I\j'M\'\~';"'" \1 . ELECTRIC FUND SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31,2000 Variances Actual Actual vs. Amended Bud. 1999 Positive (Negative) $ % REVENUES Operating Revenues 15,407,085 890,12'3 4.60 Interest on Investments 378,544 54,401 10.17 Intergovernmental (SPA - Conservation) 27,823 5,347 38.24 Construction Contribution 88,662 7,239 9.65 Other Revenue 163,467 (2,536 (3.51 TOTAL REVENUES 16,065,581 954,574 4.77 EXPENSES BY OBJECT Personnel 939,973 (11,201 (1.16 Supplies 147,823 (91,823 (59.09 Power Purchase 9,729,067 (818,348 (6.08 Charges & Services 2,276,226 (53,567 (2.07 Utility Taxes 929,667 (112,875 (1 0.31 . Capital Outlay 25,533 (6,834 (41.42 Return on Investment - General Fund 59,200 TOTAL EXPENDITURES 14,107,489 (1,094,648 (5.96 NON-OPERATING REV. (EXP) Construction Projects 173,910 25,284 6.17 Transfer to G.O. Sond Fund 76,560 Nt Transfer to Economic Development Fund 100,000 Debt Service 419,150 (83 (0.02 TOTAL NON-OPERATING 769,620 (25,201 (2.79 Total Expenses 14,877,109 1,069,447 5.55 CHANGE IN CASH FLOW 1,188,472 (114,873 (14.94 Cash designated for Rate Stabilization 1 ,700,000 Unreserved Cash Balance 6,427,226 . 41 WATERlWASTEWATER SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31,2000 REVENUES Operating Revenues - Water Operating Revenues - Wastewater Interest on Investment Other Revenues TOTAL REVENUES Actual 1999 2,218,390 3,237,106 217,714 114,253 5,787,463 EXPENSES BY OBJECT Personnel Supplies Charges & Services. Utility Taxes TOTAL EXPENDITURES 1,160,808 276,500 2,193,753 411 ,525 4,042,586 NON-OPERATING REV. (EXP) Construction Projects Capital Outlay Transfer to Economic Development Transfer to Equipment Services Fund Transfer to other funds Debt Service TOTAL NON-OPERATING 571,050 52,227 100,000 18,246 1 ,193,458 1,934,981 Total Expenses 5,977,567 CHANGE IN CASH FLOW Transfer from Rate Stabilization Proceeds from PW and SRF Loans NET INCREASE/DECREASE IN CASH FLOW Cash designated for rate stabilization Unreserved Cash Balance 42 . %Of Change Variances Actual vs. Amended Bud. Positive (Negative) $. % 33,561 1.42 (68,181 (2.01 27,568 9.19 (33,482 (36.20 (40,534 (0.66 19,493 1.83 (18,262 (6.57 230,332 11.00 6,304 1.43 237,867 6.13 (763,830 (46 74,184 (18,236 (707,928 945,795 905,261 7.68 . 1-- ""'~~lJlf;!'If~;tf~::r:j~'fI!i(t!'~'lif:t('~:;'~"1 ," ',~ . SOUD WASTE SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 Variances Actu al %Of Actual vs. Amended Bud. 1999 Change Positive (Negative) $ % REVENUES Operating Revenues 5,229,734 241,497 5.56 Interest on Investments 187,995 59,846 19.95 Grants 132,913 19,393 231.42 Other Revenues 572 (5,506 (91.77 TOTAL REVENUES 5,551,214 315,230 6.77 EXPENDITURES Personnel 690,842 (11,123 (1.59 Supplies 48,441 110,180 42.79 Charges & Services 1,925,942 71,677 3.74 Utility Taxes 409,734 (7,154 (2.04 TOTAL EXPENDITURES 3,074,959 163,580 5.07 . NON-OPERATING REV. (EXP) Construction Projects 392,203 211,766 14.55 Capital Outlay 7,914 N/ Transfer to Street Fund 100,000 Transfer to other funds 33,155 N/ TOTAL NON-OPERATING 533,272 211,766 13.62 Total Expenses 3,608,231 375,346 CHANGE IN CASH FLOW 1,942,983 690,576 Transfer for Landfill Closure and Postclosure NET INCREASE/DECREASE IN CASH FLOW 1,942,983 Cash reserved for Landfill Closure 1,851,655 Cash reserved for Landfill Postclosure 858,029 Unreserved Cash Balance 2 563 369 690,576 28.34 . 43 EQUIPMENT SERVICES SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31,2000 Actual 1999 REVENUES Charges for Services Interest on Investment Interfund Charges Miscellaneous Reven-ues Transfer from other funds Transfer from GF reserves TOTAL REVENUES 8,000 129,917 887,234 36,873 326,523 1,388,547 EXPENDITURES Personnel Supplies Charges & Services Capital Outlay Transfer to 1992 G.O. Bond Debt Payment (Fire truck) TOTAL EXPENDITURES 243,657 361,636 189,547 816,382 24,250 29,335 1,664,807 NET INCREASE/DECREASE IN CASH BALANCE Cash reserved for replacement Unreserved Cash Balance 44 . Variances Actual vs. Amended Bud. Positive (Negative) $ % 2,229 22,691 64,613 1,021 (2,250 88,304 1,821 (72,285 (28,079 464,136 365,593 453,897 111.45 13.75 7.33 34.03 (0.49 4.53 25.23 16.80 . EXPENDITURES Personnel 204,416 1,042 0.44 Supplies 6,650 (30,946 (326.12 Charges & Services 94,082 36,662 28.38 Capital Outlay 47,947 25,731 50.82 . TOTAL EXPENDITURES 353,095 32,489 7.58 NET INCREASE/DECREASE IN CASH BALANCE 38,659 Cash Balance 113,345 34,439 31.95 INFORMATION SYSTEM . SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31, 2000 Actual 1999 REVENUES Interfund Charges Miscellaneous Interest on Investment Transfers from other funds. TOTAL REVENUES 375,688 3,475 5,890 6,701 391,754 . %Of Change Variances Actual vs. Amended Bud. Positive (Negative) $ % 1,950 NI 32.50 1,950 0.46 45 SELF INSURANCE SUMMARY OF REVENUES & EXPENDITURES For the Year Ended December 31,2000 Actual 1999 REVENUES Interfund Charges: * Dental benefits * Workers Compensation * Liability Insurance * Medical & Vision * Other Interest on Investment TOTAL REVENUES 107,018 268,597 296,200 1,225,370 37,402 26,561 1,961,148 . Variances Actual vs. Amended Bud. Positive (Negative) $ % (285 (672 (16,780 (2,842 (1 ,455 (22,034 (0.28 (0.24 (1.38 (7.81 (3.64 (1.14 EXPENDITURES Dental benefits 119,857 2,277 Workers Compensation 222,142 (739 Time Loss (due to Workers Comp.) 83,538 7,908 Liability Insurance 281,068 (72,562 Medical & Vision 1,167,029 (41,059 Other 43,065 804 TOTAL EXPENDITURES 1,916,699 (103,371 NET INCREASE/DECREASE IN CASH BALANCE 44,449 Cash reserved for Workers Compensation 125,000 Cash Balance 687,814 125,405 18.58 46 . '~1:~;~~ft\!~J~:'~'<;'wF'!f~I'~t~r":tr""'~";~;;~';1'-' Schedule A . CITY OF PORT ANGELES SALES TAX COLLECTION FOR THE YEARS 1997 - 2001 'Yo OF 'Io0F Vo OF BUDGETE 1996 1997 1998 1999 2000 CHANGE UM. CHANGE AMOUNT 2001 TO 2000 2001 TO 2000 COLLECTED JANUARY 182,705 155,868 171,053 173,158 177,103 -1.89% (1.89 7.72% FEBRUARY 203,257 189,874 209,075 229,281 229,841 -14.09% (8.78 8.78% MARCH 213,429 183,425 212,048 168,839 163,755 -100.00% (34.96 0.00% APRIL 158,872 133,492 170,548 146,266 168,512 -100.00% (49.78 0.00% MAY 171,548 166,101 194,575 187,102 185,468 -100.00% (59.86 0.00% JUNE 193,869 164,244 193,174 183,587 201,726 -100.00% (67.05 0.00% JULY 175,785 177,591 157,255 182,078 177,198 -100.00% (71.53 0.00% AUGUST 181,297 182,129 198,912 195,383 209,714 -100.00% (75.47 0.00% SEPTEMBER 212,314 214,701 204,416 212,895 184,286 -100.00% (78.13 0.00% OCTOBER 203,549 225,998 207,406 210,347 201,891 -100.00% (80.46 0.00% NOVEMBER 207,704 199,053 214,952 201,801 233,789 -100.00% (82.60 0.00% DECEMBER 179,551 194,605 200,161 191,383 175,439 -100.00% (83.92 0.00% . TOTAL 2,283 881 2,187,081 2,333 575 2,282,120 2,308,722 -83.92% 83.92 16.50% BUDGET 2000 . 47 ~ 00 Schedule A1 Sales Tax Analysis Oeser. 1995 1996 1997 1998 1999 Actual Actual Actual Actual Actual 285,121,239 271,919,821 260,384,100 277,804,041 (4.63) (4.24) 6.69 0.84 0.84 0.84 0.84 2002 2003 2004 2005 Forecast Forecast Forecast Forecast 267,857,143 267,857,143 270,535,714 273,241,071 275,973,452 (2.54) 0.00 1.00 1.00 1.00 0.84 0:84 0.84 0.84 0.84 Tax Base Annual Growth Tax Rate (statuatory Limit 0.84%) Elements of Sales Tax (by SEC#) Construction 288,635 236,542 276,691 357,298 Annual Growth 12.39 (18.05) 16.97 29.13 Wholesale 256,455 258,449 236,700 221,796 Annual Growth 4.25 0.78 (8.42) (6.30) Automotive/Gas 379,021 387,090 390,267 382,165 Annual Growth 7.87 2.13 0.82 (2.08) Retail 781,618 706,956 739,232 740,154 Annual Growth 4.35 (9.55) 4.57 0.12 Services 229,380 227,250 219,256 256,868 Annual Growth (0.61) (0.93) (3.52) 17.15 Other 459,624 467,594 324,935 375,294 Annual Growth 6.09 1.73 (30.51) 15.50 Sales Tax per Capita Port Angeles 129 122 116 124 Sequim 222 211 193 224 Clallam County 94 91 91 100 State 148 149 153 158 . . . Schedule 81 . CITY OF PORT ANGELES HOTEL/MOTEL TAX COLLECTION FOR THE YEARS 1997 - 2001 First 2% '10 OF 0/0 OF ro OF BUDGETE 1996 1997 1998* 1999* 2000 CHANGE UM.CHANGE AMOUNT 2001 TO 2000 2001 TO 2000 COLLECTED JANUARY 6,936 5,992 6,237 6,821 6,671 15.71% 15.71 4.17 FEBRUARY 5,813 4,909 5,481 5,707 7,253 9.36% 12.40 4.29 MARCH 5,297 7,090 6,507 6,392 4,941 -100.00% (17.04 0.00 APRIL 6,690 13,047 6,413 7,067 6,807 -100.00% (39.03 0.00 MAY 7,653 7,249 7,858 7,156 8,293 -100.00% (53.92 0.00 JUNE 7,353 8,909 9,478 9,189 11,568 -100.00% (65.63 0.00 JULY 12,090 15,096 13,655 12,352 14,728 -100.00% (74.03 0.00 AUGUST 19,902 19,821 18,428 18,041 21,985 -100.00% (80.97 0.00 SEPTEMBER 32,021 30,050 30,139 26,969 30,497 -100.00% (86.12 0.00 OCTOBER 33,141 35,407 35,653 39,819 31 ,453 -100.00% (89.15 0.00 NOVEMBER 23,003 21,924 23,592 19,844 28,871 -100.00% (90.96 0.00 DECEMBER 12,708 9,945 13,279 21,852 12,210 -100.00% 91.55 0.00 . TOTAL 172 607 179 439 176719 181209 185 277 -91.55% 91.55 8.46 BUDGET 2000 . 49 Schedule 82 TOTAL BUDGET 2000 . CITY OF PORT ANGELES HOTEUMOTEL TAX COLLECTION FOR THE YEARS 1998.2001 Second 2% (L~vied April 1998) "10 OF "10 OF v. OF BUDGETE 1998* 1999* 2000 CHANGE UM.CHANGE AMOUNT 2001 TO 2000 2001 TO 2000 COLLECTED 6,812 6,657 15.95% 15.95 4.17 5,727 7,253 9.36% 12.52 4.29 6,325 4,941 -100.00% (16.98 0.00 7,038 6,807 -100.00% (39.00 0.00 4,767 8,293 -100.00% (53.90 0.00 9,176 9,183 11,568 -100.00% (65.62 0.00 13,512 14,764 14,728 -100.00% (74.02 0.00 18,446 18,372 21,965 -100.00% (80.96 0.00 30,139 27,930 30,497 -100.00% (86.11 0.00 31,259 38,567 31 ,453 -100.00% (89.14 0.00 23,678 22,777 28,871 -100.00% (90.95 0.00 17,586 18,918 12,210 -100.00% 91.55 0.00 143 796 181 180 -91.55% 91.55 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Note: Special Hotel/Motel Tax implemented in April 1998; first receipts in June 1998; . 50 . Schedule C ~~~ j, {,:.- ,r--- .! CITY OF PORT ANGELES CRIMINAL JUSTICE'SALES TAX COLLECTION FOR THE YEARS 1997 . 2001 "10 OF "10 OF V. OF BUDGETE 1996 1997 1998 1999 2000 CHANGE UM.CHANGE AMOUNT 2001 TO 2000 2001 TO 2000 COLLECTED JANUARY. . 11,332 9,963 11,981 12,507 12,786 1.82% 1.82% 7.33% FEBRUARY 12,930 15,211 14,429 15,710 18,637 -100.00% -58.57% 0.00% MARCH 13,459 11,983 15,063 13,213 12,988 -100.00% -70.69% 0.00% APRIL 10,052 9,945 10,794 9,877 12,661 -100.00% -77.19% 0.00% MAY 11,873 10,772 13,571 13,653 14,015 -100.00% -81.69% 0.00% JUNE 13,102 12,409 13,592 13,903 14,242 -100.00% -84.74% 0.00% JULY 11 ,424 11,665 12,240 13,522 13,607 -100.00% -86.84% 0.00% AUGUST 12,907 13,345 15,395 15,990 17,399 -100.00% -88.81 % 0.00% SEPTEMBER 14,704 15,317 15,264 16,684 15,513 -100.00% -90.13% 0.00% OCTOBER 14,091 15,441 16,044 15,460 16,303 NOVEMBER 13,986 13,861 15,919 15,399 18,681 DECEMBER 13,102 15,081 15,070 16,323 13,023 TOTAL 152 962 154,993 169362 172 241 179 855 -92.44% -92.44% 7.33% . BUDGET 2000 . 51 . . . 52 ,.... .. .... ,'" . Financial Report For the Year Ended December 31,2000 .Total Expenditu~~~$54 Milliol1 . Personnel $13.4M or 25010 . Supplies and charges for services (includes $12.5M of power purchase) $27.3M or 50010 . Intergovernmental (includes $2M of utility taxes, PenCom, County Jail) $4M or70l0 . ., ,. Cap~al and . Capital and capital cap~al DeblService . proJeC__s . Personnel projects $7M or 130/0 nlergOVernrre'~""'" ..' 0 ntal . Debt service $2.6M or 5 Vo Supplies and O1arges for Services 1 .; '-'to.~ .~~~.'_'_ ___ 4 Sales Tax - $2f3~~~?2S "" . 2,400,000 . Sensitive to economic condition . Unstable for the last six years ' Construction Businesses moving outside of city limit Internet sales . $48,725 or 2% more than budgeted . $26,604 or L2% increase over 1999 . 18% of GF revenue 2,350,000 2,300,000 2,250,000 2,200,000 2,150,000 2,100,000 2,050,000 1995 1996 1997 1998 1999 2000 Components of Sales Tax 4 I . ,.sales Tax Per Resi~:nt . 250 ! .'1 50 ,200 150 . . .100 o 1995 1996 1997 19?8 : '. 199' . 2000 . Port Angeles III Sequim : _ ClallamCo I. ,4:roperty TaX - $~,-~06/126 . $267,402 or 110/0 . . 3,000,000 increase oyer 1_99~ . Retirement of 1992 Refunding - & G.O. Borid' 2,000,000 $230,000 . Rate $3.09 per $l,OOQ . 0.40/0 decrease in assessed valuation . 140/0 of property taxes allocated to Street . No area to grow 1,000,000 2,500,000 1,500,000 . 500,000 1996 1997 1998 1999 2000 5 .Initiative 722 uP~~~e . Declared unconstitutional by Thurston Co'U nty , Superior Court Judge on 2/23 . 1-722 violates Sil1gle Subject Rule . In .addition 1722 violates: . . . . . . . . The. Uniformity Clause requiring that property taxes be applied uniformly . The Gift of Public Funds Rule . The Full Disclosure Rule . Decision is not final 4Utility Taxes - $2,?OO,653 . 1,600,000 . . $250K or 140/0 more than 1999 . $114K or 60/0 more than budgeted . . Reasons: ., Water ~nd . wastewater rate increases . 400/0 increase in Daishowa power usage 800,000 1,400,000 1,200,000 1,000,000 600,000 400,000 200,000 o p,~ pI\' p,f\ p,00 p,~ _~~ ~ ~ ~ ~ ~ f'I;~ 6 I .Other Revenues _.. . Telephone taxes $458,014; $20,786 over' budget . Leasehold taxes $115,191; $35,191 over budg~t .' Intergovernmental, revenue $487,590; $70,561 ' over budget , . Liquor excise tax and board pr~fjt $13,5.04 . OPNET $44,787 " . School Resource Officer grant from CTED $14,669 . Fines and Forfeitures $282,234; '$35,769 less than buqgeted and only 50/0 more than 1999 " 40ther Revenues ~~~t . Transfers-in $213,025 included: . Criminal Justice $ 198,025 , · Hotel/Motel Tax $15,000 ($13,000 for Marine Life CeJ.1ter, $2,000 for recreation program)' . Medic I $437,245;,$10,245 over budget . Interest on investments $300,198; $59,698 more than budget; included' unrealized gain . Miscellaneous revenue $65,974 over the budget' included one time reimbursements such as court time, donations, moorage, city leases, Quest payments 7 & General Fund EXP~~~itures 9 8 M I I I I 0 n S o . ee(\e\its sel'liCes (\{\"\e(\ta\. \ o\.lt\a'i s\efS o\.lt f>efSO(\(\e\ '(\afgeS \Of \(\tefgO'ief ca?\ta \~(\ . s&. C S\.l??\ie .General Fund E~~=nditures Varia1CeS Actual Amended Actual \IS. Aitiended axt. 2000 axtget Positive (~gative) 2000 $ % Expenditures by Cbject: RJrsonnel Ber1efits 8,525,517 8,722,785 197,268 2.26 &Wies & Charges for Servk:es 2, 122,402 2,118,836 (3,566) (0.17) lnter!PJernrrentaJ . 899,352 825,944 (73,400) (8.89) QlPtaI QJllay 170,346 249,824 79,478 31.81 Transfers out 1,945,312 1,945,312 0 . 0.00 Total QJerating Expenditures 13,662;929 13,862,701 199,772 1.44 8 I I ,.General Fund EX~:,nditures - .,) Personnel $8.$M or 7.20/0 ofo'perating budget; $197,268 or 2~20/0- below budget . ,,supplies and serVices$2.1M; Jon budget .. Int~rgover,nmental $7~,408~over ,budget; jail ,cost, 220/0 or $72,572:more t~a.n budgeted and 350/0,or '$105,601 more than 1999' . Capital outlay $79~478' less than budget:;' , . Police cars $20,174 , . ~ublic W~rks'$15,900 ., Pool projects $7,684, park facilities $36,620 I , - ,.General Fund ~XP~,~,~itun:~s tant. . Transfers out and other uses $1,945,312 included: . Transfer to Economic Development $25;000 . ,Transfers to Equipment Services $151,577 ($28,577 for payment on Fire Truck-and '$123,000 for Medic One p~rchase) , _ , : , . Transfers to CIP $345,000; included additional $200,000 for Carnegie Library . Transfer to Contingency Fund :$200,000 . Transfer to catch u'p with equipment replacement '$438,735 , ' . Transfer to CIP Fund $650,000 . Reserved for future emergencies $135,000 9 It Gener~1 Fund Reserv~s , 1999 2000 2000 Amended Budget 3,036,663 Beginning Fund J~alarice Add: Revenues Less: Operating Expenditures Transfers to'8::0nonic Development Transfers for CII:' projects Transfers to ,Equipment Services Transfe'rs from reserves to CIP TransfersJrom reserves' to Eq. Serv. Transfers from reserves to Contingency Reserved for future Initiatives Increase (decrease) in Fund Balance Ending Fund Balance 4,169.555 ~,036,663 12,339,063 12,966.894 12,574,131 12,138,620 ,.11.717,617 ' 11,917,389 50,000 25,000 25,000 100,000 345,000 345,000 29,335 151,577 151,577 1,000,000 650,000 650,000 0 438,735 438,735 150,000 200,000 200,000 0 135,000 135,000 . (1,128,892) (696,035) (1,288,570) 3,036,663 2,340,628 1,748,092 . General Fund Reserves 5 General Fund 4 Ul C ~ 3 :E 2 1992 1994 1996 1998 2000 Est 1993 1995 1997 1999, 2001 Budget 10 .LOdgingT,ax Fund . Revenue $379,704 . Expenditures $~18,699 . Marketing program . $363,916 in 2.5 years ~ 200 . Reser,ves$194,907 ~ ~ 100 ,0 J: I- .. Street Fund . Revenues $1,237;386 (include. $100,000 transfer from REET # 1 . Expenditures $1,288,998 (include $328,000 paving 'program) , . $51,612 decrease in reserves . Reserves $444,145 Lodging Tax Revenues, 400 o 300 ' 1996 '1997 1998 1999 2000 5 T h" 1,200 0, 1 000 u ' 5800 a' n d 1999' " 2000 Actual '2000 Budget 11 4Governmenta, C_~~ital Projects . 8th Street Restoration: cost to date $1,267,659; financed by PWTF loan; will be completed in 2001 . Carnegie Library Fa<;ade: cost to date $196,914; accumulated funds include: . 1998 from Library $400,000 . 1999 from General Fund reserves $200,000 . 2000 from General fund $250,000 . Budgeted in 2001 from General Fund $50,000 . Total available funds $700,000 4GovernmentaI ~~pital Projects . Centennial Trail $44,179 . Street Paving $328,800 . Airport Road Realignment cost to date $766/840 ($185/229 in 2000); .funded by TIS grant and County . Gateway Multi-Model Center cost to date $68/762 ($33/784 in 2000) 12 ,Utilities (Enterprise Funds)' .. Expenses $31;307,478 . Account for 600/0 of total CitY expenses . Rates are set to recover operating cost, debt payment, andto fund'capitalprojects" . . . . Electric G Solid Waste '. .' ,.~Iectric Utility . Revenue $20,981,747 . $4;916/166 or 31 % increase over 1999 . $954/574 or 50/6 more than budgeted . Operatin'g Expenses $19,449,086 . $4/559/915 or 470/0 increase in power purchases . Power purchases $818/348 or 60/0 rnorethan budget .. .. .. . . . . Power purchases represent 700/0 of expenses . Utility Taxes 300(6' over last year;' 100/0 over budget . 13 .Elec~riC F!,.md co~t: . Construction of $384,716 included: . Design for substations upgrade and , reconquctoring . Valley fault duty correction . Cresthaven conversion Ii Valley' 1201 service reliability . Cash balance more than $7M plus $1.7M designated for rate stabilization .water & Waste~~ter Utility . Revenue $6,096,966; 50/0 over last year . Operating expenses $3,6::39,495;,100/0 less than 1999 and 60/0 less than budget . Debt service $1,230,692 represents 240/0 of budget (exc!udinq construction) Supples and Charges for services 32'% ebt SeMee . 190/0 Personnel Transfers out 1 60/0 30/0 Utility Taxes 70/0 14 . . . .. ,.~ater &Waste~:=~r. Utility . -Cbnstruction'$l,459,170 inCluded: . Grant st. replacement .'Downtown watermain, phase II .. Annual waterline ahd sewer replac~ment . projects def~rred to 2001; . ~Iack Diamond reservoir . .' . ." Backupgener(;ltor .' Cash reserves $3.7M plu~ $1,850,000 designated for rate stabilization .SOlid WasteUtil~,.. ." Revenue $5M; 100/0 less than 1999 but 60/0 more than budget' . Operating ,expenses $3,062,816;, same level as '1999 but 50/0 below budget (supplies for daily cover material) , , ., Landfill cell expansiofl $1,?4~,234 . No rate increases since 1994 - , ' . Cash reserves $3,'126,929 .' Cash reserved for landfill' closure and postclosure $2,709,583 " 15 Investment Review . . As of February 28, 2001 .,Market Overvie~. . Growing'inflation . Slowing economy . Rate decreases in past six months . Fed ~ates decreased from 6.50/0 to 5.50/0 . Two year Treas~ry rates decreased fr~m 6.51 % to 4.440/0, this is 207 bp in one year . Flat yield curve 16 &'Yield Curve .' 7 6 5 4 3 2' 1 o ~~ # ~o 0<::' ~ ~~ 4.0~ ;" . ~t::J 4.0 'V" ~c., ~t::J ~t::J 4.0 4. 0'lf 4. 0'lf ~ ,,\:) . ~\:) 6.51 on 2/28/00 4.43 on 2/28/01 ,.City'S Investment~~ortfolio '. Major objectives: ..safety, liquidity, yield . Almost $36 million invested '. Average return was over 6.50/0 . Diversification., for types 'of investments and maturities 17 &,SiZe of 'Investme~~ Portfolio 40,000,000' 35,000,000 30,000,000, 25,000,000' 20,000,000 15,000,000 10,000,000 5,000,000 o ~" ~~ ~O:J ~b< ~<o ~Io ~'\ ~ro ~OJ ~(;;) " " " " " " " " " ~ .,Matwities of Investments > 6 month 18% 1-2 years 16% 6 month - 1 year 33% 18 . . . DATE: To: " FROM: SUBJECT: F'O" R" "T"'PiNG' "EL: ES" : .:":" : , i ~. ,". .": ~ '~ . ~ ". '. .. : -:' ~ ',. . ~ "'. ....' .:: ::: . : i : ~ : ';' . uumu 00' '""", ' ," ...'"" , ...00... "" , .... WAS H IN G T O'N, U. S. A. CITY COUNCIL MEMO February 26,2001 ~YOR DOYL: AND CITY ~OUNCIL . _~ Tnnothy 1. Snnth, Econonnc Development Drr~ Consideration of Agreement with the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitors and Convention Bureau for 2001 Tourist Information and Promotion Services. . Summary: As part of the City's 2001 budget process, Council approved a recommendation set forth by their Lodging Tax Advisory Committee to allocate funds for tourism information and promotion services to the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitors and Convention Bureau (NOPVCB). A contract for those services has been prepared for consideration by Council. Recommendation: Authorize the Mayor to sign the contract with the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitors and Convention Bureau for 2001 tourism information and oromotion services. Back~round I Analvsis: A contract proposal relating to tourism information and promotion services has been developed between City staff and the Chamber/NOPVCB partnership. The proposed contract provides funding resources and performance expectations in accordance with recommendations by the City of Port Angeles Lodging Tax Advisory Committee as set forth by that committee last Fall. Tehns of the proposed contract include the following: Maintenance and Operation of Tourist Information Facility (Port An!!:eles Visitors Center). The Contractor will maintain and operate a tourist facility for the distribution of tourist-related information generally considered to be of all informational and assistance nature to tourists or visitors to the community, including travel directions, directions to points of interest, lodging accommodations and other hospitality services, recreational activities, cultural events, emergency services, and other referral services. Tourist Promotion Services and Activities , The Contractor will provide tourist promotion services in the form of a joint marketing program and a tourism marketing cooperative of organizations which include the Story Tellers, Hurricane Ridge Ski Club, Port Angeles Parks and Recreation Dept, Jet Ski Race, Jazz in the Olympics, Bayrishe Radafunk BikelPress Tour, and Longhouse Association, PADA Art on the Town Brochure, Clallam County Historical Society, OBTA Baseball Association, Big Hurt, and Blue Grass Festival, and others, and which is consistent with the 2001 City Lodging Tax proposal submitted by the Chamber/NOPVCB partnership. The term of the proposed contract is from January 1,2001 to December 31,2001. 53 CONTRACT FOR TOURIST INFORMATION AND TOURIST PROMOTION SERVICES THIS CONTRACT is entered into this _ day of , 2001, by and between the City of Port Angeles, Washington, herein after called "City", and the Port Angeles Chamber of Commerce and the North Olympic Visitor and Convention Bureau, non-profit corporations, hereinafter called "Contractor". REPRESENTATIONS 1. It is in the public interest for hoteVmotel tax funds to be expended for tourist promotion services in the City of Port Angeles. 2: Pursuant to RCW 67.28.1815, the City of Port Angeles is authorized to expend special excise tax funds for "tourist promotion purposes", which is defined in RCW 67 .28.080( 6)to . mean activities and expenditures designed to increase tourism, including but not limited to . advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, developing strategies to expand tourism, operating tourism promotion agencies, and funding marketing of special events and festivals designed to attract tourists. 3. The Contractor desires to provide tourist promotion services in the form of advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists and operating tourism promotion agencies. AGREEMENTS NOW, THEREFORE, in consideration of the above representations and the payments, covenants and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties covenant and agree as follows: Contract for Tourist Information and Tourist Promotion services Page 1 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 54 . . . . 1. Scope of Services. A. Maintenance and Operation of Tourist Information Facility. The Contractor will maintain and operate a tourist facility for the distribution of tourist-related information as follows: (I) The Contractor will furnish the following services: (a) Services generally considered to be of an informational and assistance nature to tourists or visitors to the community, including travel directions, directions to points of interest, lodging accommodations and other hospitality services, recreational activities, cultural events, emergency services, and other referral services. (b) Interpretive displays, audio-visual programs, or other media designed at promoting the City and County tourist attractions. (2) Hours of Operation: The Contractor, to the maximum extent feasible, shall maintain hours of operation for the information facility sufficient to keep it open and available to the public the year around, but particularly, will adjust hours of operation to best cover the peak tourist months. During the generally recognized tourist season;hours of operation, as much as possible, shall be coordinated with the arrival and departure schedule of the Black Ball Transport, Inc., "COHO" ferry system or such other schedule of operation so as to provide optimum coverage in proportion to the demand on the facility for tourist services. (3) Staffing: The Contractor will provide qualified, trained staff to operate the tourist information facility in a professional and competent manner. B. Other Tourist Promotion Activities. (I) The Contractor will perform tourist promotion services in the form of a joint marketing program and a tourism marketing cooperative of organizations in accordance with the funding request outline set forth in the attached Exhibit "A". . (2) The Contractor agrees that all tourist promotion funds received from the City will promote tourism within the City of Port Angeles and not individual members of the Contractor. Contract for Tourist Information and Tourist Promotion Services Page 2 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 55 C. Additional Services. The Contractor may provide additional services consistent with those services described in this Section, provided that the City will compensate the Contractor for each additional service only to the extent that all services described within this Section have been satisfactorily performed and to the extent that funds remain under the total payment amount set forth in Section 3. 2. Duration of Contract. The performance of the Contractor shall commence on the 1st day of January, 2001, and terminate on the 31st day of December, 2001. The duration' of the Contract may be extended or terminated upon the mutual written agreement of the parties hereto and pursuant to the terms and conditions of the Contract. 3. Compensation and Method of Payment. The City shall reimburse the Contractor for services rendered as specified in Section 1 as follows: A. Maintenance and Operation of Tourist Facility and Tourist Promotion Activities. In consideration of the services to be performed in Section 1 with respect to maintenance and operation of the tourist facilities and other tourist promotion activities, and upon receipt and acceptance by the City Manager" of the Contractor's monthly invoices for maintenance and operation expenses and invoices for advertising expenses, the City will reimburse the Contractor for services rendered as follows: $50,000 to the Port Angeles Chamber of Commerce for the operation of the Port Angeles Chamber of Commerce Visitor Center, $45,000 for the Port Angeles Marketing Promotion, and advertising efforts by the North Olympic Peninsula Visitor & Convention Bureau; Parks & Recreation ($28,000); Hurricane Ridge Ski Club ($4,000), and Story Tellers ($2,500); plus Year 2001 New Events which includes Jet Ski Race ($2,500), Jazz in the Olympics Festival ($2,500), Bayrishe Radafunk Bike/Press Tour ($2,200), and Longhouse Association ($1,000); PADA Art on the Town brochure ($1,000); Clallam County Historical Society ($2,500); OBT A Baseball Association ($200); Big Hurt ($1,500); Blue Grass Festival ($1,000); provided that the total of the monthly payments shall not exceed $143,900, with a contingency amount of $10,0001. lAs of the contract date, the contingency amount is allocated as follows: Seattle Press Expedition ($2,500); Hurricane Ridge PDA ($5,000); and unallocated ($2,500). Contract for Tourist Information and Tourist Promotion Services Page 3 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 56 . . . . . .. 'l'\lA({~~~';Y'!t'!;:",i~r~f,~t', ';~~'1"!.~~~;1 B. Annual Dues. The City will also pay to the Contractor the additional sum of $527.00, representing dues for the City as a member of the Port Angeles Chamber of Commerce for calendar year 2001. 4. Record Keeping and Reporting. A. The Contractor shall provide the, City with the 2001 budgets of the Port Angeles Chamber of Commerce and the North Olympic Peninsula Visitor and Convention Bureau, copies of which are attached hereto as Exhibit "B" and include current salaries and benefits for all employees and classifications of employees, and.shall notify the City within 30 days of any increases in salaries or benefits from the previous year. B. The Contractor shall maintain accounts and records which accurately reflect the revenues and costs for the operation of the Port Angeles Chamber of Commerce and Tourist Information Facility. Accounting for maintenance and operation of the Port Angeles Visitor Information Center, as a separate cost center, shall be maintained by the Contractor. These financial records and all records relating to the performance of this Contract shall be available for City inspection. C. The Contractor shall provide the City with reports fully describing what work has been performed pursuant to this Contract, how the work relates to the services and activities set forth in Section 1, identifying how the work has contributed to increased lodging visits to Port Angeles, and including a current statement of revenues and costs. Said reports shall accompany the monthly invoices. The final monthly report shall include a complete report describing and detailing how the performance of the contemplated services has been accomplished in accordance with this Contract. D. The Contractor shall use its best efforts to economize on overhead expenses to the maximum extent feasible in providing the services to be performed pursuant to this Contract. 5. Travel. The City has adopted policies for the reimbursement of travel expenses. Designed to conserve public funds, these policies limit reimbursement for transportation, lodging and meal expenses to Federal per diem standards (attached as Exhibit "C"). The City strongly encourages the Contractor to adopt similar policies for any travel supported by City hotel/motel tax funds. Contract for Tourist Information and Tourist Promotion Services Page 4 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 57 6. Independent Contractor Status. The relation created by this Contract is that of independent contracting entities. The Contractor is not an employee of the City and is not entitled . - to the benefits provided by the City to its employees. The Contractor, as an independent contractor, has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal; State, and local taxes or contributions imposed or required, including, but notlimited to, unemployment insurance, Social Security, and income tax. 7. Hold Harmless and Indemnification. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. 8. Breach. . A. In the event of either party's material breach of the terms or conditions of this Contract, the non-breaching party reserves ~e right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring. to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. . Contract for Tourist Information and Tourist Promotion Services Page 5 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 58 ~';~fS':~'f."<t";C'l,l~";~-, ;'~"~_'r.<:;"::",~;~",,,~ 9. Non-Discrimination. The Contractor shall conduct its business in a manner which . assures fair, equal and non-discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: A. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity/affirmative action requirements; and, B. The Contractor shall comply with all requirements of applicable federal~ state or local laws or regulations issued pursuant thereto, relating to the establishment of non-discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 10. Entire Contract. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. . IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first hereinabove written. CITY OF PORT ANGELES PORT ANGELES CHAMBER OF COMMERCE By: Mayor President ATTEST: ATTEST: By: Becky J. Upton, City Clerk Secretary APPROVED AS TO FORM: NO. OL YMPIC VISITOR AND CONVENTION BUREAU By: Craig D. Knutson, City Attorney President ATTEST: By: . Secretary Contract for Tourist Information and Tourist Promotion Services Page 6 of 6; F:\AGREEMENTS&CONTRACTS\LTAC01.wpd 59 . . . 60 . . .. DATE: To: FROM: SUBJECT: ~ORT.'ftl.NG.. E.L. E.S. . . . . ." :~. . . i. . .;".. ': .' , : : , : " , . . . . '. ~. ..-. " ':: :' ~.,l:: .. S : ....... .. . ..: . . ........ ..... ., WAS H I N G TON, U. S. A. CITY COUNCIL MEMO February 26,2001 MA vOR DoYLE AND CITV COUNCIL .~ Timothy J. Smith, Economic Development Dir~ Consideration of Contract Amendment for Tourism Marketing Program with the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitors and Convention Bureau. Summary: In an effort toward merging budgets and cost centers for two Lodging Tax revenue streams, and for two service contracts (one a multi-year tourism marketing contract, the other for tourism information/activity services), it would be helpful to have both contracts operating under a similar time frame term. It would also be beneficial to have both contract terms be consistent with the City's fiscal budget calendar. To accomplish this, a one-time, term extension of the multi-year tourism marketing contract, currently scheduled to end on May, 31, 2001, is necessary. The proposed time extension would not increase the amount of funding. By extending the timeframe from May 31 sl to December 3 1, 2001 the goal to combine the revenue and expenditure streams can be accomplished. Recommendation: Authorize the Manager to sign the contract amendment for the tourism marketing program with the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitors and Convention/Bureau, extendin2 the expiration date to December 31,2001. Backl:round / Analysis: In approximately mid-year 1998 the City implemented a recommendation by the Port Angeles Lodging Tax Advisory Committee (LTAC) to increase the local lodging tax from 2% to 4%. In recommending implementation of the additional tax, the LTAC also recommerided the funds not be used for the same purposes that the original 2% was being used for, and instead be used toward the specific goal of increasing lodging night sales in our traditional shoulder and off season. It was recommended that this be pursued through a "multi-year tourism marketing program". Following a request for proposals, a program designed by the Port Angeles Chamber of Commerce and North Olympic Peninsula Visitor and Convention Bureau was selected. Council concurred with the recommendations by their Lodging Tax Advisory Committee and an initial three-year contract with the Chamber and NOVCB was entered into. That contract is scheduled to terminate by May 31, 2001. Since that time, having the tourism marketing contract function "off cycle" of the City's fiscal calendar year has proved awkward. In addition, confusion frequently occurs for both the City and contractor regarding budgeting requests and the proper coding of expenses between the two 2% cost centers. For these reasons, it has been suggested that an effort to merge the budgets, cost centers and contracts into a common timeframe and cost center area be initiated by an extension of the term on the marketing program contract. 61 ---" FIRST AMENDMENT TO CONTRACT FOR TOURISM MARKETING PROGRAM . THIS AMENDMENT to the Contract For Tourism Marketing Program dated May 19, 1998 is made and entered into by and between the City of Port Angeles, a municipal corporation, hereinafter called the "City", and the Port Angeles Chamber of Commerce and the North Olympic Peninsula Visitor and Convention Bureau, non-profit corporations, hereinafter called the "Contractor". WHEREAS, the City and Contractor are parties to a contract for tourist promotion services in the City of Port Angeles in effect until May 31, 2001; and. WHEREAS, the City and Contractor have agreed to extend the contract for tourist promotion services in the City of Port Angeles through December 31, 2001; NOW, THEREFORE, the City and the Contractor hereby agree that the contract for tourist promotion services in the City of Port Angeles dated May 19, 1998 shall be amended as follows: 1. AGREEMENTS, Paragraph 2, Duration of Contract, is hereby amended to read as follows: The performance of the Contractor shall commence on the 1 st day of June, 1998, and terminate on the 31 st day of December, 2001. The Contract may be terminated by the City with or without cause upon thirty days' written notice to the Contractor. . DATED this day of , 2001. CITY OF PORT ANGELES Michael Quinn, City Manager ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: NORTH OLYMPIC PENINSULA VISITOR AND CONVENTION BUREAU By: President Craig D. Knutson, City Attorney ATTEST: By: Secretary . F:\AGREEMENTS&CONTRACTS\tourism-amend 6 tovcmbcr 30, 2000 (9:47am) DA TE: To: FROM: SUBJECT: ~ORTANGELES WAS H I N G TON, U. S. A. CITY COUNCIL MEMO March 6, 200 I MA YOR DOYLE AND CITY COUNCIL Brad Collins, Community Development Director ~ Salmon Recovery Lead Entity Group (LEG) Dam Position Statement Summary: Clallam County Natural Resources Division is proposing that the North Olympic Peninsula Lead Entity Group (NOPLEG) endorse the simultaneous removal of the two Elwha dams as the best science for salmon and bull trout habitat recovery. The position is supported by the five tribal members of the LEG. The Cities of Port Angeles and Forks have taken a more cautious approach to the issue because of the alternate community view expressed by the Elwha Coalition and former Senator Gorton. The decision to send the letter to state and federal officials requires the consensus of the LEG, and the City should decide whether or not to consent. Council Members Campbell and Wiggins are also members of the Elwha Coalition that has taken the opposing point of view favoring sequential dam removal. Recommendation: Following discussion, provide the City's LEG representatives with policy direction on the issue, which is scheduled for review at the March 9th meeting of the LEG. Background / Analysis: A strong consensus has been forged among the five tribes, three cities, and two counties in the North Olympic Peninsula Lead Entity Group in its salmon recovery efforts under HB 2496 (the Rep. Buck Bill). In several rounds of funding by the Salmon Recovery Funding Board (SRF Board), NOPLEG has done very well. There is much work on a salmon recovery strategy plan which needs to be accomplished for priority habitat enhancement projects to reach the next level of success, and group consensus will be needed. The issue has been delayed to give the Cities of Port Angeles and Forks time to decide how to address opposing community views. The dam removal plan being generated by Olympic National Park and the Bureau of Reclamation anticipates concurrent removal of both dams over a three to five year period rather than sequential removal of the lower then the upper dam over a twelve year period. Attachment: Draft LEG dam removal letter G:\CNCLPK T\PLANNING\Elwhadam. LEG. wpd ~ "./~ iI &r' DRAFT March 9, 2001 Honorable Congressman Norm Dicks Washington, DC 20510 Dear Congressman Norm Dicks Under Washington State law (RCW 77.85), the North Olympic Peninsula Lead Entity Group (NOPLEG) of local and tribal governments is responsible for soliciting, developing, evaluating, and prioritizing salmon habitat recovery projects throughout the North Olympic Peninsula region. In qur commitment to long-term planning and implementation of salmon recovery and watershed planning projects, NOPLEG is developing its collaborative role in supporting salmon recovery and ecosystem restoration efforts on the north Olympic' Peninsula. 'We have identified, in this development stage, the importance of providing support for full ecosystem restoration,ofthe Elwha River watershed. Congress has mandated the full restoration of this ecosystem and its native anadromous fisheries through the Elwha Ecosystem and Fisheries Restoration Act (Public law 102-495). Consequently, the Department of Interior is moving toward actual removal of both the Elwha and the Glines Canyon dams on the Elwha River. This action is due to the uniqueness of the Elwha River and the Ecosystem Restoration Act and does not set a precedent for breaching hydroelectric dams in other areas of Washington. . The Elwha River was historically one of the most productive producers of anadromous salmonids on the Olympic Peninsula, supporting runs of ten different stocks. However, construction of two dams without fish passage facilities restricted fish access to only the lower 4.9 miles of the river. Since construction of the dams, loss of gravel recruitment, woody debris, and alteration of temperature regimes below the dams have degraded the existing habitat conditions to a point that the Elwha River supports only small runs of primarily hatchery-supplemented fish. The majority of the drainage (80 percent) is located above the dams, within the boundaries of Olympic National Park, and is in pristine condition. Once accessible, these habitats will be quickly colonized by salmon ids. NOPLEG supports the full restoration of the Elwha River ecosystem while respecting all actions reasonably necessary to maintain and protect existing water quality for the City of Port Angeles, Dry Creek Water Association, Elwha Place Homeowners Association, and the industrial users of Elwha River water against adverse impacts of dam removal. We believe that the removal of both dams is the only action that provides the potential for full restoration. Additionally, we believe that concurrent removal of the "dams presents the most cost effective and ecologically beneficial process, while resulting in the least detrimental impacts to existing and future fishery and water resources. -I DRAFT The costs associated with removing the Elwha Dam, followed by removal of the Glines Canyon Dam 12 years later, are estimated to amount to an additional $26.5 million. This action would involve: requiring two contractor stagings, 12 years of additional fisheries monitoring, duplication of fish restoration efforts, and rehabilitation of roads - twice. Regulatory costs will cover at least a 12-year period, with a supplemental EIS immediately required for removal of only the Elwha Dam and another in order to update information following the 12-year period. We believe that the restoration of the Elwha River represents a unique opportunity to restore wild salmon stocks on a scale unparalleled on the west coast. Full restoration can only occur with the removal of both dams, which achieves the goal in the shortest time, with the lowest cost, and with the least environmental impact. Sincerely, c: GovernqrGary Lock~ Senator Patty Murray Senator Maria Cantwell Clallam County Board of Commissioners Lower Elwha S'Klallam Tribe City of Port Angeles Dry Creek Water Association Elwha Place Homeowners Association National Marine Fisheries Services Olympic National Park . pORTANGELES WAS H I N G TON, U. S. A. CITY COUNCIL MEMO CITY MANAGER'S CALENDAR / REPORT March 6,2001 Downtown Forward Executive Committee Meeting Monday, March 5 7:00 a.m. P.A. Works! Committee Meeting Monday, March 5 10:00 a.m. Utility Advisory Committee Meeting (Rescheduled from Mar. 12) Monday, March 5 3 :00 p.rn. City Council Meeting Tuesday, March 6 6:00 p.m. Public Development Authority Bd of Directors Meeting Wednesday, March 7 7:00 p.rn. National League of Cities Conference March 9 - 13 Wa., D.C. . Real Estate Committee Meeting (meet as needed) Tuesday, March 13 4:00 p.m. Law Enforcement Advisory Board Meeting Wednesday, March 14 6:30 p.rn. Planning Commission Meeting Wednesday, March 14 7:00 p.rn. Parks, Recreation, & Beautification Meeting Thursday, March 15 7:00 p.rn. City Council Meeting Tuesday, March 20 6:00 p.m. City Council Meeting Gateway Committee Meeting (as needed) Utility Advisory Committee Meeting Real Estate Committee Meeting (meet as needed) Law Enforcement Advisory Board Meeting Planning Commission Meeting City Council Meeting . G:\CNCLPKT\crYMGR\CMREPT\2001\Ol-0306.WPD Tuesday, April 3 6:00 p.m. Thursday, AprilS 8:15 a.m. Monday, April 9 3:00 p.rn. Tuesday, April 1 0 4:00 p.rn. Wednesday, April 11 6:30 p.rn. Wednesday, April 11 7:00 p.rn. Tuesday, April 17 6:00 p.m. 63 . .' .1 64 ,- . . . ~o R. T' ..'ft;.. N'G" 'E'L" E' ..S~ j' .,.. .... . '. i .i . i" '.. .'! ..... '. i/ j .. / . ... : ... ,_... / WAS H I N G TON, U. S. A. CITY COUNCIL MEMO DATE: March 1, 2001 To: MAYOR DOYLE AND CITY COUNCIL FROM: Michael Quinn, City Manager '-r't (7-- SUBJECT: Council Goals - Project Update Summary: As indicated in prior informational reports, it is my desire to increase the project information to the City Council via a series of status updates on a monthly basis. We may not address every project each month, but will address those projects that are the most active or have other circumstances that impact them. With the prior submittal ofthe Work Plan, these projects have now been identified and can be tracked for monthly progress. Recommendation: No action necessary - information. Backi:round / Analysis: Goal: Financial Stability - Provide consistent and quality municipal services through the adequacy, utilization, and development of financial resources that maximize return on investment, leverage of outside resources, and equity for local taxpayers. * Electric Rates - The Public Works, Light Division is working with all of our major customers in regard to education and conservation strategies to deal with the anticipated BP A rate impacts later this Fall. * County Opportunity Fund - A revision ofthe requirements have been forwarded to the EDC for review which generally work toward encouraging more fundable projects. The emphasis is on increasing the balance of grant to loan projects, and encouraging collaborative partnerships. It is anticipated that this item will go to the County Commissioners in March for their consideration. Goal: Intergovernmental Relations - Promote communications, legislative influence, and agency cooperation with all public entities on the North Olympic Peninsula, as well as State, Federal, and Tribal agencies which impact our community and environment. * Elwha Water Protection - Engineering and Management meetings have been attended this past month, as well as preliminary coordination with the Lower Elwha Klallam Tribe regarding a Networking Forum for grant opportunities, and review ofthe amended Sedimentation model at the MCT meeting. A briefing on the Sedimentation Modeling of the river is being presented at ONP Headquarters on March 6th at noon. * Intergovernmental Agreement - A draft agreement has been formulated between the staffs G:\MASTFORM\COUNCIL.WPT Last Revised: 6/29/99 65 of the City and the Lower Elwha Klallam Tribe regarding the basic policies of coordination and . communication between the two governments. This is undergoing further.review and should be ready for legislative review by both councils shortly. Goal: Quality Municipal Services - Organize and provide municipal services that are oriented toward meeting the needs of our citizens, effectively utilizing available resources, and achieving improvements in our community's quality of life. * ISO Rating Study - An inter-departmental work team has been formed to prepare for the rating bureau visit and has visited Bremerton and Port Townsend to discuss recent reviews in their communities. * Efficiency Improvements - Several departments are reviewing alternatives to the traditional delivery of service or capital we program into oUr organizational and budgetary decisions: Police - (1) Police recruiting is now possible via the Internet to accept applications for consideration; (2) The Department is participating in a county-wide terrorism threat assessment project to learn tactics and become eligible for future grant funding opportunities; (3) A semi- monthly county-wide law enforcement and prosecutors meeting has been established to review efficiencies for the criminal justice system. Fire - (1) The new replacement ambulance is currently under construction in Chehalis and delivery is expected in April. * E-nable Survey - This survey is being presented to the Council as part of the Council meeting. Goal: Employee Excellence - Expand programs and policies that enhance the work environment, stimulate employee performance, and promote customer service to assure the provision of quality municipal services and prepare our employees for the future challenges in municipal government. * Performance Evaluation - Weare embarking on a revised system of performance evaluation which emphasizes achievement of performance goals, training of supervisors, and more consistent treatment of all personnel involved in the process. New forms and procedures are under review by representatives of all our employee groups and a training session for our supervisors and managers has been set through Peninsula College. * Labor Contracts - A second session for mediation is being scheduled for March in regard to our Teamster contract with the Police Officers. * CCSC - The Customer Commitment Steering Committee has been restructured into a smaller group with more sub-committees for accomplishing specific objectives. As an example, the performance evaluation project received much of its impetus from this committee process. * Training - The Police Department is training three officers as Field Training Officers to instruct new recruits, and Officer Glenn Wood completed certification to ~epair department rifles. Goal: Community Development - Develop policies and promote implementation measures that enact our Comprehensive Plan, preserve the character of our community, and provide the necessary public facilities and infrastructure consistent with our vision for the future. * Annexation - The Department Heads are organized into an Annexation Task Force to G:\MASTFORM\COUNCIL. WPT Last Revised: 6/29/99 66 . . . . . coordinate our preliminary service plans and analyze impacts associated with annexation. of our eastern UGA. We remain focused 011 accomplishingfue'analysis in the first quarter of2001 and beginning the process of review with all public agencies and the City Council shortly thereafter. The Fire Department is also pursuing a comprehensive fire protection policy to address fireflow issues throughout the County and the UGA. * Airport Road Realignment - Right-of-Way certification has been completed, and advertising is expected to be started in March. * Carnegie Library Restoration - Design has commenced as well as the structural value engineering study with an anticipated early Summer date for review ofthe 35% design completion. * Fiber Optics - A design consultant contract with Metropolitan Communications Consultants, mc. has been signed but notice to proceed has been held pending approval of the business plan. We have had preliminary meetings with telecommunication providers to review potential partnerships to assure these services to our community. * Morse Creek Hydroelectric Facility - The proposed lease for this facility is being delayed in order to clarify terms with Ebey Hill Hydroelectric, mc., and with local permitting and environmental concerns. It is anticipated that this item will be forthcoming to the Council within the next month. * Telecommunication Ordinances - Three ordinances dealing with telecommunications, pole attachments, and facility siting have been drafted and are going through a review process with staff and the Planning Commission. Staffhas also conducted a comprehensive review with the consultant in a workshop session to better understand the proposed regulations. * Francis Street Park - Bid and construction documents are currently being completed with a mid-Spring bid anticipation. * Valley Creek Estuary Project - Modifications to thewidth ofthe footbridge have been made to meet WDFW requirements, and we are proceeding with a revised permit application to finish this . project this year. " * Waterfront Trail - Negotiations are continuing on an easement for the trail and utilities corridor. Goal: Economic Development - Stimulate the community's economy through a combination of policies and programs which diversify the economic base, support the community and resource-based activities, provide adequate infrastructure and support, promote the opportunities for high technology and innovative applications for our business and industrial base, and establish the community's prominence as the service and activity center of the North Olympic Peninsula. * Downtown Watermain Project - This project is being submitted to the APW A for consideration as a meritorious project award; and the final asphalt paving should be completed within the next month as we enter Spring weather. * Gateway - The design consultant is presenting the latest concepts for this project' in the Council Chambers at 7 am on March 5th. * Waterfront Vision - The recent meeting ofthe Port Commissioners with the City Council has given direction to proceed with organizing the stakeholders in a waterfront planning strategy. * Incubator/Skills Center - The community partners in this proj ect are developing a business G:\MASTFORM\COUNCIL.WPT Last Revised: 6/29/99 67 plan and funding proposal to equip and capitalize this proposed facility. * Sappho Gap - A funding application to CERB has been submitted which seeks $1.7million . of the $5 .2million Qwest Settlement funds held by the State. While this is a large percentage of such funds, we are encouraged by our support as a rural partnership with both the private and public sectors. * Conference Center - A draft RFP has been completed and circulated to various stakeholders for initial comment. Preliminary presentations are being scheduled for the Chamber of Commerce on March 5th, and for the Lodging Tax Advisory Committee on March 6th. Goal: Community Livability - Protect, preserve and enhance the quality ofliving within our community which fosters a commitment toward excellence in environmental, cultural, social, and physical benefits to our citizens. * Committee on Codes - I have talked to Community Development about the formation of a citizen/developer task force to review our code and standards requirements, especially as they impact development. The preliminary steps toward organization have been identified and we are soliciting individuals to serve on this committee. * Recycling and Yard Waste -With the adoption of recent solid waste ordinances, the staff is moving ahead with efforts to educate the public and achieve stated goals to reduce plastics from the yard waste, restrict the yard waste stream to smaller wood products and remove undesirable rocks and large stumps, etc. This information was prominently displayed at the KONP Home Show at the High School last February 24 & 25. Goal: Community Relations - Enhance citizen-government communication in order to promote a more responsive and accountable municipal organization which functions with understanding and support for its constituency. * Education/Government Access - The City Clerk has initiated the process to update and reconvene this committee to discuss future direction for access programming and community information. A date is still to be set but we are working toward a meeting later this month. . G:\MASTFORM\COUNCIL. WPT Last Revised: 6/29/99 . 68 . . . ','-\)' ;'hi}':-;' FORTAN ELES WAS H I N G TON, U. s. A. CITY COUNCIL MEMO DATE: FEBRUARY 28, 2001 To: MAYOR DOYLE AND CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRE SUBJECT: EXPENDITURE CONTROL PROCEDURES At the Council Meeting on February 20, Councilmen Wiggins inquired about the City's procedures for monitoring and controlling expenditures. Considering some financial challenges the City is facing, this is a very timely question. In general, expenditures are divided into several categories such as personnel expenses, supplies, charges for services, capital outlay, and projects. In governmental funds the largest share of expenditures (71 % in General Fund) is for personnel. In proprietary funds (utilities) personnel expenses represent only 9% of all expenditures. It is important that the City has procedures to control both personnel expenses and purchases of goods and services (procurement). The expenditure control process starts with the City's expenditure policies. These policies are outlined on page 16 of the 2001 Budget document and included in attachment A. The policies address compliance with state regulations, authorization for additional personnel, and procurement. The most comprehensive process for setting up the expenditure levels is during the budget process. The department heads are required to provide justification for all expenses, especially travel, training, and professional services. For new personnel or capital purchases we require a detailed financial analysis of the new program. All requests are closely analyzed. The City Manager can be especially brutal with his "scissors." Next, the Finance Committee consisting of three Council members screens all presented programs. Of course, all council members have the opportunity to ask questions and comment on the budget. We want the Council and the public to have confidence that public funds are being spent prudently. After the budget is approved there are three stages of expenditure control: · Planning and scheduling expenses to meet the program and budgetary objectives, we also call this stage budgetary control; . Source selection (purchasing control), the process through which solicitations are issued, advertisements run, vendors selected, and goods or services received; and · Contract administration, when the terms ofthe purchase agreement are enforced and ~~~~ 69 Budgetary Control (stage one) Personnel is monitored very clo~ely. All new personnel must be approved by the City Council. We have procedures such as segregation of human resources and payroll duties to ensure integrity of internal control. Several layers of authorization are required on the Personnel Action Form to change employees' status. At least monthly, the Finance Director and Department Heads compare personnel spending to the monthly Budget Status Report (BSR). Additionally, the responsible managers have access to other personnel reports such as overtime reports or leave usage. . Department Heads are responsible for keeping expenditures within the budget. They are allowed some flexibility between individual line items, but they are not allowed to exceed the budget without City Council approval (amending the budget, page 3 ofthe 2001 Budget). There is also a rule that any savings in capital projects cannot be used to support the operating budget, especially personnel. To help with monitoring expenditures the Finance Department provides a monthly Budget Status Report (BSR) to all managers. The BSR (attachment B) shows current month expenditures, year-to- date, budget, and amount still available for spending. It is important that all expenditures are coded to the correct line item. Additionally, the Finance Director reviews all reports on a regular basis and communicates any possible problems to the responsible Department Head and City Manager. Purchasing Control (stage two) The terms of "procurement" or "purchasing" are used interchangeably. The fundamental objective of the purchasing function is to provide the goods and services needed in the right quantity and quality, on a timely basis, as efficiently as possible, and at the lowest overall cost. . To help achieve this objective the City needs to comply with legal requirements, such as state procurement laws and the City's Purchasing Policy. This procedural framework generally emphasizes price, control, and accountability but not efficiency and effectiveness. Weare in the process of reviewing our procedures and recommending modifications to our Purchasing Policy which will improve those functions. At this time, we are also looking into other aspects of procurement such as inventory control, central purchasing, electronic, and credit card purchases. At this time, the City's purchases fall into three categories: below $5,000, between $5,000 and $15,000, and more than $15,000. Department Heads and designated managers have authority for purchases below $5,000. Departments are required to obtain three quotations for any purchases of more than $5,000 but less than $15,000. Additionally, the City Manager needs to approve purchases of more than $5,000. F or any purchases of more than $15,000 the formal bidding process is required; City Council has authorization to approve these purchases. The City Council's authorization is also required for approving contracts for services or approval to authorize the City Manager to sign the contract. In addition, all departments are required to consult with the Finance Director regarding significant payments and purchases to ensure compliance with the budget. All purchases which were not included in the budget must be verified by the Finance Director, recommended by the City . Manager, and approved by the Council on a case by case basis. 70 . . . :;:~1f;~~~1~~S~~~,~~~t'1~~;k~~,~'fi':~t~~~~~ Contract Administration (stage three) The responsibility for enforcing the purchase agreement lies within each department. Once the receiving documents are signed, and the invoices authorized for payment and submitted to Accounts Payable, the bills are processed for payment. Only Department Heads and designated managers are authorized to approve invoices for payment. Also, the Finance Director reviews the check lists and, of course, Council has an opportunity to review the check register on a monthly basis. Bills are paid on a weekly basis. The City has additional internal control procedures in place to protect itself from possible fraud. The above three areas cover the City's general procedures for expenditure control with the realization that there is always room for improvement. 71 City of Port Angeles 2001 Operating Budget Revenue Policies 1. The City will try to maintain a diversified and stable revenue system to protect against short-term fluctuations in anyone revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of an economic downturn. 2. Because revenues, especially those of the General Fund, are sensitive to both local and regional economic activities, revenue estimates will be conservative. 3. The City will estimate its annual revenues by an objective, analytical process. 4. The City will establish all user charges in relation to the cost of providing the service. Each year, the City will recalculate the costs of activities supported by user fees to identify the impact of inflation and other cost increases. 5. The City will set fees and user charges for each enterprise fund, such as Light, Water/ Wastewater, and Solid Waste, at a level that supports the total direct and indirect cost of the activity. Indirect costs include the cost of 2. annual depreciation of capital assets. 6. The City will follow an aggressive policy of collecting all monies due to the extent that the collection efforts are cost effective. Expenditure Policies 1. The City will maintain a level of expenditures which will provide for the public well-being and safety ofthe residents ofthe community. 2. Expenditures will be within the confines of generated revenue. 3. The City will maintain expenditure categories according to State statute and administrative regulation. 4. High priority should be given to expenditures that will reduce future operating costs such as increased utilization of technology and equipment, and more prudent business methods. 72 ATTACHMENT "A" 5. Emphasis should be placed on improving . productivity rather than adding to the work force. 6. Additional personnel should be recommended only after needs have been thoroughly documented and it is substantiated that the new employee is critical to the operation of the City. New personnel must be approved by the City Council. 7. The budget will provide sufficient funding for adequate maintenance and orderly re- o placement of capital plant and equipment. Encumbrances Policy For purposes of budgetary control, the City will utilize an encumbrance procedure through an automated purchasing system: 1. Encumbrances are recorded when items or services are ordered (based on estimated or known cost). When payment occurs, the encumbered value is reversed and actual cost is recorded. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded to reserve that portion of the applicable appropriation, is employed in the governmental funds. 0 Encumbrances are reported as reservations of fund balances because they do not constitute expenditures or liabilities. . 3. Encumbrances are not recorded in the financial statements for proprietary fund types or pension trust funds. Capital Improvement Budget Policies 1. The City will make all capital improvements according to an adopted Capital Improvement Program. . 16 . ,V>\.:~h~::P't',; ; ~~;d>lr;,\,~~~:\;rJ!}'<r't:cf~~~; ATTACHMENT "B" . ,". .:;1,1,. City of Port A~g~les Budget Status RepOrt General Fund Expenditures - Period 12 As of December 31, 2000 Report Generated 02/23/01 Fnd 001 General Fund Opt 0001 Administration Current Month ------ ---- Year to Date ------- 2000 Amended ----- Annual Actual Encumbrance Actual Encumbrance Budget Variance X Avail \Iayor & Council Salaries and Wages 112 1002 Part Time Employees 2,850 34,200 34,200 ...-..-.--.-. .-----...... ..--....---- -..-.--..--. ------------ -.---------. Obj 001 Salaries and Wages 2,850 34,200 34,200 Personnel Benefits 112 2010 FICA 218 2,616 2,617 112 2030 Public Employees Retirem 16 183 184 .5 112 2040 Insurance Benefits 39 470 470 ------------ ------------ ------------ ------------ ---------_.'- ------------ Obj 002 Personnel Benefits 273 3,270 3,271 suppl ies 112 3101 Office and Operating Sup 264 3,795 5,200 1,405 27.0 ------------ ---..-.--.-- ------------ ------------ ------..----- ------..-.-- Obj 003 Supplies 264 3,795 5,200 1,405 27.0 - iiIIIi Services & Charges 10 Communications Expense 240 500 260 52.1. 1 10 Travel and Training 55 13,250 14,000 750 5.4 112 4901 Dues/Subscriptions/Membe 650 650 100.0 ---.-......... .---...-.--- ------------ ------------ ------------ ------------ Obj 004 Other Services & Charges 55 13,490 15,150 1,660 11.0 ------------ ------------ ------------ ------------ ------------ ------------ Div 012 Mayor & Council 3,443 54,754 57,821 3,067 5.3 / . 73 . . . 74 . . . I ~-f. -" " :.~~' i .':'" ....i-c Awe ASSOCIA nON OF W ASIDNGTON CITIES 1076 Franklin St. SE Olympia, WA 98501-1346 (iflO) 7'11-4117 FAX 7'i1-4R9fl February 23,2001 TO: Mayors, City Managers/Administrators, City Attorneys, City Clerks, Finance Directors, and other interested parties FROM: Stan Finkelstein, A WC Executive Director SUBJECT: Initiative 722 Declared Unconstitutional Today Thurston County Superior Court Judge Christine Pomeroy declared Initiative 722 unconstitutional in its entirety. The judge ruled from the bench after oral arguments on summary judgment motions. The following is the primary finding: . 1-722 violates Single Subject Rule, striking down the entire initiative. In addition, the judge ruled that 1-722 violates: . The Uniformity Clause requiring that property taxes be applied uniformly; . The Gift of Public Funds Rule; and . The Full Disclosure Rule. In a January 9 ruling, all cities were prohibited from implementing 1-722 under a preliminary injunction pending today's ruling. Today's decision is not final. The ruling is expected to be appealed to the Washington State Supreme Court later this year. Cities should continue to consult their city attorneys for information about how today's ruling impacts their jurisdiction. Attached is a news report about the. decision as well as a draft of the ruling. A WC will send further updates when more information becomes available. If you have any questions, please feel free to contact Sheila Gall of A WC at 360-753-4137 or by e-mail at sheilag@AWCNet.org. SF/SG Enclosures 75 1 The Hon. Christine A. Pomeroy . 2 3 4 5 6 7 8 IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF THURSTON 10 9 THE CITY OF BURlEN, et al., Plaintiffs and Plaintiffs Intervenors in these Consolidated cases, No. 00-2-02068-3 11 v. ORDER GRANTING PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT ON THE CLASS CLAIMS 12 FEDERICK C. KIGA, et al., 13 14 Defendants, and PERMANENT OFFENSE 1-722, Intervenor Defendant. . 15 16 This matter came before the Court on Motions for SUInInary Judgment on the Class 17 Claims by the County and Municipality Class Plaintiffs and the Individual Plaintiffs, as well 18 as cross Motions for Summary Judgment by Defendants State and Permanent Offense 1-722 19 and several "Burien cases" plaintiff cities' motion for summary judgment on certain 20 interpretive issues. This Court has heard oral argument from the parties on the class claims 21 and considered all the motions, along with the supporting and opposing submissions by the 22 parties and the records and files herein, a list of which is attached to this Order as Exhibit A. 23 Having considered the above, this Court is of the opinion that plaintiffs' Motion 24 should be granted. 25 26 RDER GRANTING PLAINTIFFS' MOTION FOR SUMMARY GMENT - 1 :\TEMP\P-ORDER GRANTING SUMMARY JUDGMENT.DOC ~attlp Davis Wright Tremaine LLP LAW OFFICES 2600 Century Square. 1501 Fourth Avenue SeatUe. Washington 98101-1688 (206) 622-3150 . Fax: (206) 628-7699 . 76 . . . ?~}t'f:~~mI~~W[::!:';;~;~:;:;?:;~"':':: -..'. ;-1-}i/;:h';~,of~'~~K:;~'_~i'~':~i1> 1 2 This Court makes the following conclusions: 1. There is no genuine dispute of material fact and plaintiffs are entitled to judgment as a matter oflaw. 2. Initiative 722 violates the single-subject provision, Wash. Const. Art. II, sec. 19, and, therefore, the entire Initiative is unconstitutional. 3 4 5 6 7 3. Initiative 722 violates the uniformity clause, Wash. Const. Art. VII, sec. 1, and, therefore, the entire taxing scheme is unconstitutional. 8 9 4. Initiative 722 violates Art. II, sec. 37 of the Washington Constitution. 5. Initiative 722 violates Art. VIII, sec. 7 of the Washington Constitution and, 10 11 12 therefore, section 1 ofInitiative 722 is unconstitutional. 6. The Court holds that Initiative 722 does not violate the subject-in-title provision of Wash. Const. Art. II, sec. 19. The ballot title reflects the Initiative. 7. The Court holds that Initiative 722 does not violate Art. XI, sec. 12. 13 14 It is accordingly ORDERED, ADJUDGED, and DECREED that: 15 16 1. The Plaintiffs' Motions For Summary Judgment On The Class Claims be, and hereby are, GRANTED. 17 18 19 20 The Defendants' Motions for Summary Judgment are DENIED. 2. 3. Initiative 722 is hereby declared unconstitutional, null, and void III its entirety. Implementation and enforcement of Initiative 722 shall be, and hereby is, permanently enjoined. This injunction binds the State and all of its political subdivisions. It binds the parties to these cases, the classes, and all of their employees, agents, subdivisions, and others acting in concert. with them. 4. 21 22 23 24 25 Each and every one of such persons and entities are accordingly enjoined 26 RDER GRANTING PLAINTIFFS' MOTION FOR SUMMARY GMENT-2 :\TEMP\P-ORDER GRANTING SUMMARY JUDGMENT.DOC p:~ttlp: Davis Wright Tremaine LLP LAW OFFICES 2600 Century Square. IjOl Fourth Avenue Sealtle. Washington 98101.1688 (206) 622-3150 . Fax: (206) 628-7699 77 78 1 2 from implementing or enforcing Initiative 722. In light of the foregoing, the Court does not need to decide the motion by . 5. 3 4 interpretive issues. several "Burien cases" plaintiff cities for summary judgment on certain 5 '6 7 6. The Court finds that there is no just reason for delay and hereby certifies this case for appeal pursuant to CR 54(b). DONE IN OPEN COURT this 'day of February, 2001. 8 9 10 Honorable Christine A. Pomeroy Thurston County Superior Court Judge 11 12 26 RDER GRANTING PLAINTIFFS' MOTION FOR SUMMARY GMENT-3 :\TEMPIP-ORDER GRANTING SUMMARY JUDGMENT. DOC p.::tIttlp Davis Wright Tremaine LLP LAW OFFICES 2600 Century Square. ISOI Fourth Avenue SeatUe, Washington 98101-1688 (206) 622-3150 . Fax: (206) 628-7699 . . . . ,-,'{.; :'Y:-:'; ;,:->\,~\,~;:,~'tff~.:'ti'}i' MINUTES PLANNING COMMISSION Port Angeles, Washington 98362 February 14, 2001 7:00 p.m. ROLL CALL . Members Present: Bob Philpott, Fred Norton, Linda Nutter, Fred Hewins, Churk Schramm Members Excused: Mary Craver (One vacancy) Staff Present: Brad Collins, Sue Roberds, Debra Barnes, Ken Dubuc Public Present: Clint and Sharest Darrow, Sharon Babcock, Craig Jacobs, Georgia Cortez APPROVAL OF MINUTES Commissioner Nutter moved to approve the January 24, 2001, meeting minutes as presented. The motion was seconded by Commissioner Schramm and passed 4-0 with Commissioner Philpott abstaining due to absence at the meeting. PUBLIC HEARINGS: CONDITIONAL USE PERMIT- CUP 01-02 - VIRGINIA MASON CLINIC - 430 East Seventh Street: Request to allow a mobile testing unit as a conditional use permit in the RHD, Residential High Density zone. (This item was continued at the January 10,2001, meeting but has since been withdrawn by the applicant.) Chair Hewins opened the continued public hearing. Director Collins noted that the applicant had submitted a letter withdrawing the application from consideration. Planner Barnes responded to questions. from the Commission regarding the parking lot activity that is occurring on the site. Ms. Barnes stated that the placement of the mobile testing unit within the existing parking lot is not in violation of the City's Municipal Code. Sufficient parking remains to satisfy the needs of the clinic per the City's parking regulations and the intended use is permitted in the Commercial Neighborhood zone. PARKING VARIANCE - PKV 01-01 - DARROW - 814 South "C" Street: Request for a reduction from 11 spaces to 8 spaces for the operation of a take-out restaurant in the CSD, Community Shopping District. Planner Debra Barnes reviewed the staff s report recommending denial of the requested reduction in parking as proposed. She provided an overhead depiction of the area including 79 Planning Commission Minutes February 14. 200/ Page 2 the uses and the available parking areas. Uses on the site are preexisting and nonconforming on-site parking is not provided per the City's parking regulations. The need for additional . parking at this time is caused due to the proposed change of use on-site from a retail use to a restaurant/food service use. Chair Hewins opened the public hearing. Clint Darrow, 201 West Ninth Street, stated that the proposal is unique from other food handling/restaurant uses in that the food is prepared within a few minutes of an order and is . not consumed on the premises. He stated that a customer would spend less time on-site than if the use were a retail activity. There will not be tables and customers will not be encouraged to linger. The estimated service period is 5 to 7 minutes. The new owner of the complex is working to create additional parking and to sign existing parking areas for that use. He stated that permission has been given for customers of the proposed business to park across (east) "C" Street on vacated Ninth Street in an unimproved parking area operated by the Museum. As the proposed use borders a residential neighborhood, it is anticipated that many customers will walk to the site. Hours of operation will not conflict with the existing restaurant use within the complex. Peak use will be between 5 p.m. arid 7 p.m. Customers will be discouraged from parking in the Grandview Grocery parking lot as the owner is not in favor of shared parking at that location. Mr. Darrow indicated that he would be willing to adjust his hours of operation to work with surrounding business users so that the lack of on-site parking does not become more of a problem. Mr. Darrow responded to Commissioner Nutter that the items being sold will not be baked but will be ~old ready to bake. He has not spoken with the operator of the existing restaurant . in the complex regarding alternating hours of operation. Mirrors could be placed in the alley to address safety issues for those who use the interior parking area. He stated that he has a letter of permission from the Museum to use their unimproved parking area; however, specific spaces have not been identified. Of the four employees who. will work in the business, he will bicycle to work and two do not drive thereby reducing the nUmber of parking spaces needed. Georgia Cortez, 818 West Fourteenth Street, stated that the proposal will be good for the neighborhood. There is sufficient on-street parking for the use. He urged the Planning Commission to.encourage new businesses in the area. Craig Jacobs, owner, Grandview Grocery, "C" Street, was concerned that the lack of on- site parking for the use would result in patrons to the proposed business using his adjacent parking area. He is not in favor ofa shared parking arrangement. Realistically, people will not park around the block to patronize a use, but they will park in the closest location which will be his parking area. Sharon Babcock, 93 Deer Run, purchases similar food items as are proposed regularly and assured the Commission that an average visit is 5 minutes. Parking is available across the street. Such an activity will be good for the neighborhood. . 80 Planning Commission Minutes February 14.2001 Page 3 . Lisa Hopfner, 218 West Ninth Street, will be an employee who will walk to work. The use is fast retail and will be good for the neighborhood. Mr. Darrow closed by saying that while.he is aware he cannot count on-street parking for his use, people do park on the street. He intends to be a good neighbor and believes that such a use will encourage other neighborhood retail activities. / There being no further testimony, Chair Hewins closed the public hearing. Commissioner Philpott opened discussion stating that old buildings throughout town are a restriction to development because they do not meet certain development standards including parking requirements. Exceptions may be made under certain circumstances such as have b.een proposed by the applicant such as take out dining versus sit down customers. Following further discussion, the Chair called a break at 8:30 p.m. The meeting reconvened at 8:50 p.m. Commissioner Norton expressed favor of the variance as proposed. . Commissioner Schramm concurred that the proposed use is desirable for the neighborhood but has some drawbacks without required parking. He agreed that people tend to park in the closest location, whic}1 may be on the street, but that is not the intent of the City's parking requirements. Commissioner Nutter st;:tted that a commercial use. at the location will increase congestion in the area which should be addressed through standard parking requirements. The proposed . reduction does not meet the intent of the City's parking requirements. Although is sounds like a good proposal for the neighborhood area, she was not in favor of the activity without parking that meets the City's minimum standards. Commissioner Hewins was concerned that the proposal would not fulfil the minimum parking needs for such a use, nor address the intent of the City's Parking Ordinance. He was not convinced that such a situation would not be detrimental to surrounding properties. . Commissioner Philpott moved to continue the item to allow the applicant additional opportunity to research available parking options in the surrounding area. The motion was seconded by Commissioner Norton. Following discussion regarding reopening of the public hearing, Commissioner Philpott moved to amend his motion to reopen the public hearing and continue the item to February 28, 2001, 7 p.m., to allow the applicant time to research available parking opportunities on surrounding properties. Commissioner Norton agreed, and seconded the amendment. The amendment was voted upon and passed 4 - 1 with Commissioner Nutter voting in the negative. The amended motion was then voted upon and passed 3 - 2 with Commissioners Nutter and Hewins voting in the negative. 81 Planning Commission Minutes February 24.2001 Pizge4 COMMUNICATIONS FROM THE PUBLIC . Mr. Clint Darrow asked what the next step in the parking variance process is. Staff responded that he should be looking for additional parking available within the immediate neighborhood, and presenting that information to staff for discussion at the February 28, 2001, meeting. STAFF REPORTS Third Draft Wireless Telecommunication Ordinance discussion Planning Specialist Sue Roberds noted the Planning Department's memorandum regarding further amendments to the Wireless Telecommunication Ordinance. Commission members concurred that with a few minor additional changes, the ordinance is ready for public review and comment. Wording was added to require the applicant to address setback issues that would ensure that in the case of structural failure a tower structure would not endanger surrounding residential uses REPORTS OF COMMISSION MEMBERS Commissioner Schramm asked if an animal control ordinance will be placed on a future agenda. Director Collins indicated that staff should confer with the new Planning Commission chair to list long range items the Commission wishes to address. Such an . ordinance could then be listed for future discussion. Commissioner Nutter reported that she, Commissioner Hewins, and staff attended the Peninsula Section American Planning Association Winter Conference on January 27,2001, in Sequim. The material presented was quite worthwhile. She asked for a report on the activity occurring in the Virginia Mason Clinic parking lot where the mobile testing unit is being placed, and asked staff to provide an update on the proposed extension of the City's eastern urban growth area submitted to the County in the spring of2000. She is interested in discussing farmer's market activities at a meeting in the near future and believes that the County's planning commissioners would be interested in meeting with the City to discuss similar issues. Commissioner Nutter will be out oftown for the March 28,2001, meeting. Commissioner Philpott expressed concern regarding activities at the Highland Courte chemical dependency rehabilitation center in his neighborhood. 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Cd> BWlD C ~']E'D' C",( , ~ J. ..' . t . ' ,* ::::-':' ~"$' :. ~ :~: : ~ . { /. 4:" . ~'; ~: ~ ~ '. i : . 'J~ ~ ~ t ~,~.~ \ .' .' ... ~N...~m" ~. l .._"_.~,, M M" f '. itJbdjt ~~...~ ur '," 'd""~"" , f !u · · , ~ / ~ . m .' f '. .".... .... r JQU ~...;.., r ',,,j .~:'., '~.' ~ February Management Report Jim Haguewood - Executive Director It has been two months since the last management report and many encouraging activities have taken place regarding improving the visibility and support services of the EDC to the surrounding areas. The Council staff has continued to attend business association meetings throughout the county and this outreach has proven to be very useful in networking and gaining knowledge of the activities that are taking place within the community. We have continued to speak at as many clubs and association meetings as possible in the hopes of getting the EDC message out to the community. The most recent engagement being a full day in Forks speaking at the West End Business Association breakfast and at the Forks Chamber lunch. . ......--..-...-.'..... ...............-....-. ........................ I_mi The month of January has been an active time in marketing and recruitment. Eleven recruitment packets were sent to leads generated through the Trade Show Consortium and one recruitment packet to a lead generated through the Port of Port Angeles. The companies that requested the information packets remain on our active prospect list and will be contacted regularly to provide the basis for possible re-Iocation to our area. The Council has also prepared two proposals. These proposals were for a retail store and an aircraft maintenance facility. In addition, we have provided research for an additional retail store and a small manufacturer. We will be continuing to follow up on these proposals. and .provide any additional materials needed. In recent months, Council staff has devised a more comprehensive tracking method for unsolicited inquiries by phone, web, or walk-in. This information for January is provided in the table on page 2. It includes all inquiries which we believe are relevant to the services we provide with referrals to SCORE, the Small Business Development Center, Chambers of Commerce/NOPVCB, and other business related agencies. . 1 85 Business Inquiries for January Phone Walk-in Web Site Inquiry Form State Total Web Visitors (1/13-2/2/01) 12 14 4 1 1,059 . . The Council has also updated the list of industrial sites in the community through the Washington' Development Network (WDN), specifically adding properties from the Forks Industrial Park. WDN is an online industrial properties database that was created to assist users in identifying properties that fit their site selection needs. WDN's database provides detailed information as well as links to economic development councils, demographics, business resources, and port districts. The Council's web site now has a link to the Clallam County list on the home page (www.clallam.org). The EDC Board of Directors' annual dinner and meeting on January 19th was a great success. The attendance was twice last year's event and it provided a great opportunity for a lively interaction between many of the county's business leaders. The first order of business was the caucus process to select representatives from the east, central, and west districts to the Executive Board. The group selected Mike McAleer to . represent the east, Karen Rogers will represent the central, and the representative to the west will be designated at a later date. Following~dinner, gifts of appreciation were presented to the outgoing officers: Jack Waud, President; Bill Peach, Vice-President; Doug Holst, Treasurer; and Randy Johnson, Past President. Each was given a unique handmade pen made locally out of specialty woods. Incoming President, Bill Peach, spoke on priority issues for the coming year of the Council. His main points were improving financial stability of the council and raising the organization's prominence as a business advocate in the county. The guest speaker for the evening was Frank Knott of Vital Resources. Frank is a well- known personality to the community through his facilitation of workshops in the BridgeWorks™ process. The topic of his thought provoking presentation was the definition of a Connected EconomyTM and what that means in today's society. He also indicated the need for communities to change their way of thinking from an industrial age policy.strategy to a connected community approach. The substance of the talk generated some interesting ideas regarding how our community can expand using the new approach and essentially, thinking outside of the "box". All in all it was a very successful event. . 2 86 . . . ~;~~~:'i":l__.---i( ';:1*i>.~f.~f#~:9~~:,~'~'f<' ?'O The Council has been assisting the PUD Rural Economic Development Revolving Fund Board in advertising a Request for Proposal (RFP) for a wireless communication plan. The goal of the project is to solicit and select the most qualified contractor to evaluate and design an optimum wireless voice and data communications tower location plan within Clallam County to enable complete service coverage. Through the RFP process, the Council has responded to inquiries concerning the scope of the project and assisted in the evaluation and reference checking of potential contractors. Interviews with the leading candidate for the project have taken place and details in the process are being finalized. The project has two main elements. The first is to identify the existing locations and service providers in the area. Second is to design a communication infrastructure that will provide 80% coverage of the inhabited areas of the county. The second element is more in-depth and will address issues such as potential sites and make recommendations regarding pre-approval and language modification to existing ordinances if needed. Additionally, the study will evaluate the concept of public versus private development of the sites to allow for an efficient deployment of wireless technologies. The completed Qwest Settlement Funds application was sent to the OTED office in Olympia on Friday, February 9th. The generation of information for the application and specific costs related to the project has been a huge collaborative effort involving numerous individuals representing public and private agencies. Those involved in the project, now being managed by the Clallam County EDC, include: CenturyTel, Qwest, NuWave Communications, Senator Patty Murray's Office, Congressman Norm Dicks' Office, Office of Financial Management, Office of Trade and Economic Development, Clallam County, PUD #1 of Clallam County, City' of Port Angeles, City of Forks, City of Sequim, Quillayute Valley School District, and the Science, Technology and Manufacturing Association. In addition, the effort is also being tracked as a potential rural model throughout Washington State by: Association of Washington Cities; Washington Software Alliance; Utilities and Transportation Commission; and Bonneville Power Administration. The total request for this project from the $5.2 million dollar settlement fund is $1.7 million dollars. The .major element that the Sappho Gap project brings to the funding process is the private sector investment on the part of CenturyTel. To bridge the gap, CenturyTel is required to lay fiber from their backbone to the meet point with Qwest. This portion of the project is just under $700,000. Without this investment, "Bridging the Sappho' Gap" will not happen. The belief is that with this commitment, and the readiness for this project to begin construction, will be enough to secure the funding. The work on the part of the partnership is not yet complete. The CERB Board's final decision will be made on April 19th with some lobbying to be done in the interim. Thank you to all the participants. Without the collaborative effort it would have been impossible to submit such an attractive proposal by the deadline. 3 87 The Incubator Skills Center project has focused on the Skills Center portion of the project recently. Staff from the Port Angeles School District; Mark Madsen, Jamestown S'Klallam Tribe; Tim Smith, City of Port Angeles; Leonard Beil, Port Commissioner; and the Executive Director have been working to develop a proposal that will be presented to the 24th District representatives in Olympia. The core of this proposal is a request for funding from the state legislature for a skills center facility that serves all of the school districts on the North Olympic Peninsula. The request of $4 million dollars is for the purchase of a facility and modem equipment that is needed to enhance the programs that are presently being offered by the program. . This proposal provides an overview of the rural economic development model that partners the training component with the emerging businesses that are located in the incubator. This proposal offers our community a strategic relationship for future economic development and presents to our legislative representatives a model, which possibly could be portable to other rural communities. The BridgeWorks™ Action committees have been workingclyrtng the months of December and January expanding specific actions related to the priorities.;Yith the assistance of Frank Knott, of Vital Resources, all of the committees including councH staff have had the opportunity to expand and refine the work. Overall the progress has been v~ty good thanks to the members of the committees for their participation. "' . As BridgeWorks™ has progressed, it is evident that the organizational concept can be very beneficial to the EDC and the community as a whole. The most difficult part of the program is how to articulate the process to the community since it requires a change in community and agency behavior. The BridgeWorks™ process is a community driven process that helps its members to understand the value of connecting resources and individuals. It builds PEOPLE NETWORKS, which are enabled by TECHNOLGY NETWORKS. As a result of the people networks, solutions based on the priorities are defined and actions are taken. It has been a number of years since the EDC has undertaken a strategic planning process. To help generate input towards this goal, the Council staff has engaged its contract partners, through an economic development round table and has coordinated the BridgeWorks™ process over the last six months. Frank Knott will facilitate the final planning session, at the February Board of Directors meeting on February 15th. The purpose of this process is to construct a course of action for the council through December 2003. . 88 4 t~':f>"~;>0'f~:t'~-\W;f~!'~ ".0\W?~~;~~~~I~ ~, . Council staff has met with representatives of the real estate industry to develop a process by which the EDC office will be updated with the most recent commercial and industrial property information. This is a tremendous tool for the Council assisting clients who request information about opportunities in the area. As stated previously in the marketing section of this report, the industrial listings have been recently updated, but a method of acquiring commercial property inventories needs to be further researched. Further discussions will help develop a procedure for obtaining the information and furthering the relationship with the real estate industry( . With help from Dick Coram and sponsorship by the Washington State Office of Trade and Economic Development, the Executive Director attended a very educational and rewarding course in Tucson, Arizona. The course is the first step in the process of acquiring Certified Economic Developers (CED) status. It was nice to meet other economic development professionals from the west coast and learn the technical aspects of economic..development. The 55 attendees represented most of the western states with the majority coming from Arizona. The course covered many aspects of the development process including strategic planning, site selection, bu~iness retention and expansion, marketing, and finance. Additionally, tourism as an economic<:l~y~lopment tool was covered by the Director of the Scottsdale Chamber of Commerce. The most fascinating topic for me dealt with the concept of not just economic development, but one of community development. This idea fit well with the direction that our community is heading regarding business development and creation of public amenities, while not losing sight of the quality of life issues. The case study that was presented was very intriguing. It focused on the community of Brunswick, Georgia that was faced with the closure of two of its main employers and the significant decline of its major natural resource: fishing. It sounded like Clallam County. The class was divided into groups of eight to present a strategic plan and create a proposal to a potential industrial client. The proposals were evaluated and our group came in a close second overall with our concept of tourism and a manufactured home building industrial client. . 5 89 . ) . . 90