HomeMy WebLinkAbout042318CITY OF PORT TOWNSEND
MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF APRIL 23,
2018
CALL TO ORDER/PLEDGE OF ALLEGIANCE
The Port Townsend City Council met in special session on the 23rd day of April 2018 in
Council Chambers at 540 Water Street. Mayor Deborah Stinson called the meeting to
order at 6:30 p.m.
ROLL CALL
Councilmembers present at roll call were Deborah Stinson, Ariel Speser, Michelle
Sandoval, Amy Howard, Robert Gray, David Faber, and Pamela Adams.
Staff members present were City Manager David Timmons, City Attorney Steven Gross,
Finance and Administrative Services Director Nora Mitchell, City Clerk Joanna Sanders,
and Public Works Director Greg Lanning.
UNFINISHED BUSINESS
Homeward Bound Cherry Street Project Funding
City Manager David Timmons gave a brief project update and briefed Council on
the financing options for structuring a loan agreement with Homeward Bound.
Staffs recommendation is to move forward with a bond ordinance which would
include a companion authorization for the City Manager to prepare and sign closing
documents. The annual City subsidy would use a portion of the Council Reserve
($32,479), plus $10,000 from the Housing Trust Fund, and possible revenue from
county recording fees. The City's initial subsidy over the first 20 years is $913,735.
Mr. Timmons noted that the City's Comprehensive Plan allows for a demonstration
project. He noted that he has prepared a complete record of Homeward Bound's
financial documentation that is available for review.
David Faber arrived at 6:35 p.m.
Mr. Timmons responded to Council questions about Homeward Bound's current
debt in the amount of $250,000 and the terms for the total loan to be repaid by
Homeward Bound which is $925,000. There was question about the impact to the
$10,000 housing trust fund for future deferrals to Habitat for Humanity. It was noted
that the City could still contribute to those deferrals, but the City would take a loss
and no longer recover the cost of those deferrals to the General Fund. With City
costs and deferrals the rough cost per unit totals roughly $150,000. There were
further comments about the affordability of these units compared to the rest of the
City Council Special Business Meeting April 23, 2018 Page 1 of 3
real estate market. Some concern was expressed about the debt being borne by
Homeward Bound. Mr. Timmons agreed to bring the matter forward on May 7.
There was no public comment.
Resolution 18-025 Related to the Construction of the Big Quilcene Diversion
Dam Repair Project; Authorizing the City Manager to Award a Construction
Contract to the Lowest Responsive Responsible Bidder, and to Sign all
Necessary Documents and Contracts for the Project
Public Works Director Greg Lanning gave the staff report. Although the construction
would begin with this authorization, a financing plan would come back to
Council. There is a potential for partial refinancing through the Public Works
Drinking Water Revolving Loan Fund. Clarifying questions related to the
construction and capital project expense and potential dangers for not taking action.
Mr. Timmons clarified the obligations by Port Townsend Paper Corporation were
voluntary and not mandatory under their current lease.
There was no public comment.
Motion: David Faber moved to approve Resolution 18-025 Related to the
Construction of the Big Quilcene Diversion Dam Repair Project, Authorizing the City
Manager to Award a Construction Contract to the Lowest Responsive Responsible
Bidder, and to Sign all Necessary Documents and Contracts for the Project. Amy
Howard seconded.
Vote: motion carried unanimously, 7-0 by voice vote.
Fire Annexation Discussion
Mayor Stinson noted this matter is in preparation for the Joint meeting next week.
Mr. Timmons noted that Alice Ostiek has been legally advising the City on this
matter specifically related to the additional capacity and setting a contractual limit
related to the City's authority to levy tax. The Fire District might also be interested in
a banking agreement to limit how funding could be used.
During discussion, there was concern about the August ballot timeline as well as
some support for first addressing equalization. More public information and
outreach is needed on the annexation issue in general. Mayor Stinson reviewed a
suggestion submitted by Rick Jahnke on discontinuing utility tax.
Public Comment,
Rick Jahnke spoke about the potential for a School District maintenance and
operation levy in February.
EXECUTIVE SESSION - TO RECEIVE AND EVALUATE COMPLAINTS OR
CHARGES BROUGHT AGAINST A PUBLIC OFFICER OR EMPLOYEE PURSUANT
TO RCW 42.30.110(1)F
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Before the Mayor asked to recess into executive session, it was noted that Council
received a request from the chair of the Non -motorized Transportation Advisory
Board to whom the executive session related. The request was that the discussion be
held in public session. Following clarification by City Attorney Gross, Council agreed
that in lieu of an executive session, Council would address the matter in open session
on the April 30 special meeting agenda.
It was noted that the recommendation is to remove the member immediately and not
allow him to hold over his position until a successor is appointed.
ADJOURN
There being no further business, the meeting was adjourned at 8:00 p.m.
Attest:
Joanna Sanders, MMC
City Clerk
City Council Special Business Meeting April 23, 2018 Page 3 of 3