Loading...
HomeMy WebLinkAbout061608CITY OF PORT TOWNSEND CITY COUNCIL MINUTES OF THE REGULAR SESSION OF JUNE 16, 2008 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in regular session the sixteenth day of June 2008 at 6:30 p.m. in the Port Townsend City Council Chambers of City Hall, Mayor Michelle Sandoval presiding. ROLL CALL Council members present at roll call were Brent Butler, David King, Laurie Medlicott, George Randels, Catharine Robinson, Michelle Sandoval and Mark Welch. Staff members present were City Manager David Timmons, City Attorney John Watts, Finance Director Michael Legarsky, Police Chief Conner Daily, and City Clerk Pam Kolacy. CHANGES TO THE AGENDA Ms. Robinson asked that item C (purchase agreement with Visitors Information Center) be removed from the Consent Agenda. The item was placed as the last item under Unfinished Business PRESENTATION Sally Toteff and Pat Bailey from the Washington State Department of Ecology presented awards of achievement to the Wastewater Treatment Plant and the Biosolids (Compost) Division of the Public Works Department. The staff and department was cited for their continuous outstanding achievement. Operations Manager John Merchant and several members of the staff were on hand to receive the awards. PROCLAMATION Mayor Sandoval read a proclamation in observation of Amateur Radio Week which will be observed the week of June 23, 2008. John Ebner accepted on behalf of local amateur radio groups. INTRODUCTION Mayor Sandoval introduced visiting dignitaries from Port Alberni, British Columbia, who are spending a few days in Port Townsend. City Council Meeting Page 7 June 16, 2008 COMMENTS FROM THE PUBLIC (Consent and non-agenda items) Bo Bricklemyer applauded the City's new bikeways and sidewalks and the effort to preserve trees affected by the San Juan sidewalk project. Andrew Reding stated that the State Democratic Convention delegates unanimously adopted a resolution urging the state to look into taking measures to acquire Puget Sound Energy by eminent domain. Tim White spoke regarding possible changes to Fort Worden access roads. (Mayor Sandoval noted that any decisions that would come to the City are at least a year away and that there would be plenty of public notice and process.) CONSENT AGENDA Motion: Mr Welch moved for approval of the following items on the Consent Agenda. Mrs. Medlicott seconded with corrections to the minutes as follows. Motion carried unanimously, 7-0, by voice vote. Correction to Minutes March 12, 2008: Change "March" to "May" in the first paragraph June 2, 2008: Vote on adoption of consent agenda (page 2) should be "5-0" rather than "6-0'; page 6, first line, change `principle" to `principal'; change "Standard and Poore's" to Standard and Poor's" in third complete paragraph. Approval of Bills, Claims and Warrants Vouchers 105019 through 105055 in the amount of $199,095.13 Vouchers 105058 through 105187 in the amount of $320, 209.64 Approval of Minutes as corrected: May 12, 2008; June 2, 2008; June 9, 2008 UNFINISHED BUSINESS ORDINANCE 2978 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF $7,500,000 TO FINANCE ROAD AND SIDEWALK IMPROVEMENTS, TOURISM AND INFRASTRUCTURE IMPROVEMENTS, AND WATERFRONT ACCESS IMPROVEMENTS; AND PROVIDING THE FORM AND TERMS OF SUCH BONDS City Council Meeting Page 2 June 16, 2008 City Manager David Timmons reviewed the packet material and noted that Finance Director Michael Legarsky and Jim Nelson of Martin & Nelson Company were also present to answer questions. He informed the Council that the City's bond rating has been raised from "A" to "A+" and that the final interest rate has been set at an average of 4.69%. Mr. Nelson complimented the City on its rating and on its excellent written financial policies; he stated that the current proposal is a very cost effective purchase and provided additional written information including a Bond Buyer Index showing the General Obligation Bond Index for 25 years and a copy of the offer letter from Martin Nelson & Company. He stated that the structure of the bond provides a longer repayment time which affords the City the ability to handle the payment schedule but also includes an option to pay off the bond sooner without pre-payment penalty; however the bond cannot be pre-paid until the tenth year. He also clarified that the rate is fixed but represents a "blended" rate. Mr. Timmons distributed a sample proposed allocation of funding for repayment of the debt service through 2038. He noted this is an example of a possible repayment schedule and the Council will be reviewing this in the budget cycle each year. Ms. Robinson stated she had met with Mr. Timmons and Mr. Legarsky regarding the repayment scheme and this draft is quite different; she expressed her continuing concern about the source of funds for repayment of the bond and the suggestion that there will be some reliance on the General Fund. She asked about the reasoning behind this change. Mr. Timmons said that the current schedule continues the General Fund support to debt repayment at or near current dollar levels; he added this is a policy decision and other configurations could be proposed such as modifying the REET 2 contribution to eliminate General Fund support. Mrs. Medlicott expressed extreme concern about the amount of lodging tax money included in the repayment. Public Comment Stan Cummings of the Northwest Maritime Center, encouraged support of the ordinance and stated the projects funded represent a synergy and economic benefit to the City. Andrew Reding stated he supports the list of projects but also noted that hard economic times are coming; he said repayment from tourist funds would be City Council Meeting Page 3 June 16, 2008 appropriate and urged the Council to avoid committing General Fund money for the repayment. David Goldman requested information on the bond insurers and ratings. (Information supplied by Mr. Nelson) Mr. Nelson also noted, in response to Mr. Butler's question, that the interest rate on which the ordinance is based expires at 11:59 tonight; he stated that there is a strong chance that future rates will be higher than today's rates; the cost of delaying a decision two to three weeks would probably be a higher rate of interest which would affect the total amount the City would be committed to pay. Mr. Welch noted that action adopting the ordinance does not lock in any particular form of payment; that is a Council policy decision which will be made during the budget cycle each year. Motion: Ms. Robinson moved for adoption of Ordinance 2978. Mr. King seconded. Ms. Robinson noted she is still concerned about the General Fund expenditure and would like to get policy direction recommendation from the Finance Committee; she believes the projects to be funded are important and that they will bring dollars back into the community. She is concerned about the burden to the General Fund and plans to closely monitor the budget. Mr. Randels stated that he believes this is an extremely conservative projection, particularly the zero increase in revenue over 20-30 years. He also supports charging the Finance Committee to come up with a proposal for the repayment schedule and noted this will be part of the Council's debate over next year's budget. Mr. Welch stated that it is always a challenge to determine which pocket the funds will come from; he supports moving forward to lock in the favorable interest rate; he noted that repayment will be a dynamic situation for years to come. Mr. King noted he would welcome a liaison from the Lodging Tax Advisory Committee to discuss repayment configuration with the Finance Committee. Mr. Butler stated he has two concerns, first that there is no policy base providing guidance and second, there is a changing economic situation which will impact the General Fund. Mrs. Medlicott stated she will not support the ordinance because of the amount of money shown in the example debt service payment chart which shows more money coming from the Lodging Tax Advisory Fund than was expected or approved by the Lodging Tax Advisory Committee. City Council Meeting Page 4 June 76, 2008 Vote: the motion carried, 6-1 by roll call vote, Medlicott opposed. RECESS Mayor Sandoval declared a recess at 8:05 p.m. for the purpose of a break. RECONVENE The meeting was reconvened at 8:16 p.m. Motion: Mr. Randels moved to refer the issue of debt service repayment on the bond funds to the Finance Committee so they can work with the City Manager on alternatives for the next budget process. Mr. King seconded. Vote: motion carried, 6-1, by voice vote, Medlicott opposed. ORDINANCE 2964 AN ORDINANCE OF THE CITY OF TOWNSEND AMENDING THE PORT TOWNSEND MUNICIPAL CODE AND CREATING A NEW CHAPTER 11.02 PARKS CODE, AND NEW SECTIONS PROHIBITING CAMPING IN PARKS, AND PROVIDING DEFINITIONS AND PENALTY City Attorney John Watts reviewed the packet material. Councilor Randels, Chairperson of the Special Projects Committee, reviewed the Committee process leading up to the recommendation to adopt the ordinance. He stated that the Committee hopes to remain involved in the larger issue of providing services for. the homeless as the City liaison to the larger group being organized by OLYcap. Mr. Butler asked why the Public Works Director rather than the Police Chief is allowed to issue temporary permits for camping (11.02.020). Chief Daily explained that this category of temporary permit would apply to a special and specific group or event with a defined beginning and ending date. He stated that the Police would still have discretion to assist people in need who may be sleeping in the parks. Ms. Robinson asked about the outcome of research regarding the Port's concern about whether permitting camping in Kah Tai would result in a violation of the City/Port lease and potential liability to the Port. Mr. Watts stated that the City's insurance agency did not consider that the City would be liable for any criminal act by a third party in this instance. He added further that the ordinance does give the Police another tool, which is the ability to approach a person who may be unlawfully staying in the park, first to see if the person is in need and then to offer resources and referrals, and finally to request that the person leave the park. This does give some protection to the City by allowing the Police greater authority to approach people in the parks. City Council Meeting Page 5 June 16, 2008 Public comment: Alison Capener (representing COAST, advocates for the homeless) stated that she has hope there will be a permanent shelter in Jefferson County some day. She stated she appreciates the work of the Special Projects Committee to help try and make City facilities safe and amenable for all but also said that adoption of the ordinance will take something away from people who have the ability to sleep in the parks now. She asked the Council and community to support the American Legion in its efforts to provide shelter for the homeless. Carla Main stated she is not convinced that citing people who have no income or place to stay is a good solution. She is pleased that the work on behalf of the homeless will continue and urged everyone to participate. Paul Richmond stated that the effect of the ordinance is to criminalize poverty and asked the Council to delay adoption of the ordinance until all appropriate "safety nets" are in place. He provided written comments. Andrew Reding noted that this ordinance does not address "camping" as we know it, but as a euphemism for the use of parks by the homeless. He added there is a level of moral discomfort here and urged the Council to support the Police Department in their commitment to discretionary and humane enforcement of the ordinance. David Goldman spoke in opposition to adoption of the ordinance. Mr. Watts noted that the ordinance does not criminalize conduct but makes sleeping in the parks a civil violation. It does allow the Police to issue a "no trespass" order at some time if necessary. Violation of that order could result in criminal citation. Motion: Mr. Randels moved for adoption of Ordinance 2964. Mrs. Medlicott seconded. Motion carried, 6-7, by roll call vote, Butter opposed. PURCHASE AGREEMENT WITH VISITORS INFORMATION CENTER Mr. Timmons reviewed the packet materials, noting that the project is a partnership, with the City purchasing the building and paying for permits and site preparation and the Chamber providing tenant improvements such as decking and flooring. The unit planned for purchase will meet the long term needs of the Visitors Information Center, including a conference room and extra office space for operations. In response to a question from Ms. Robinson, Mr. Timmons stated that a $200,000 contingency for sidewalk projects was included in the capital bond; the City Council Meeting Page 6 June 76, 2008 projects came in under budget so some remaining funds are available to allocate to this project. Public comment Tim Caldwell, Executive Director of the Chamber, thanked the City for the assistance on this project. Motion: Mrs. Medlicott moved to authorize the City Manager to enter into a purchase agreement with the Visitors Information Center and approve the additional amount necessary to complete the project from fhe capita! bond funds in an amount not to exceed $46,000.00. Mr King seconded. The motion carried unanimously, 7-0, by voice vote. NEW BUSINESS DRAFT OPERATING AGREEMENT -PEG CHANNEL AND STATION/PTTV City Attorney John Watts reviewed the packet material, noting that no action is required. He asked the Council to familiarize themselves with the proposed three-way agreement among the City, School District, and anon-profit corporation called OPeN Media, Inc. He reviewed the key features of the draft agreement and stated that a final version could come back before the Council as soon as the next business meeting. Public comment Karen Nelson, Chair of the PEG Coordinating Committee, spoke in support of the agreement and of the importance of community public television. PRESIDING OFFICER'S REPORT Mayor Sandoval reported on the activities of the Port Alberni visitors. CITY MANAGER'S REPORT Mr. Timmons provided the Council with information on a request from the Taylor/Hastings Development for the City to sponsor and support a CDGB float loan as the first step in the redevelopment of the Hastings Building. This will be vetted by the Finance Committee for a recommendation to the Council. He also reported that the lawsuit brought against the City by the County Assessor regarding the levy lid lift ballot title was resolved today in favor of the City. City Council Meeting Page 7 June 76, 2008 COMMENTS FROM COUNCIL Council member Butler gave a brief review of his trip to the Conference on Biodiversity in Germany. ADJOURN There being no further business, the meeting was adjourned at 10:03 p.m. Attest: \„~'G Pamela Kolacy, MMC City Clerk City Council Meeting Page 8 June 16, 2008