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HomeMy WebLinkAbout110722CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF NOVEMBER 7, 2022 ROLL CALL The Port Townsend City Council met in a Regular Business Meeting on the 7th day of November 2022 in Council Chambers at 540 Water Street. Mayor David Faber called the meeting to order at 6:30pm. Council members present at roll call were Aislinn Diamanti, David Faber, Amy Howard, Monica MickHager, Owen Rowe, Ben Thomas, and Libby Wennstrom. Staff present were City Manager John Mauro, City Attorney Heidi Greenwood, Planning and Community Development Director Emma Bolin, Director of Finance and Technology Connie Anderson, Director of Parks and Recreation Strategy Carrie Hite, Public Works Director Steve King, and City Clerk Alyssa Rodrigues. CHANGES TO THE AGENDA There were no changes to the agenda. SPECIAL PRESENTATIONS Native American Heritage Month Proclamation Mayor Faber presented the Native American Heritage Month Proclamation to Cultural Director Laura Price and Song Leader and Cultural Bearer Joe Price from the Port Gamble S'Klallam Tribe. In addition, he shared Theresa Lehman from Jamestown S'Klallam Tribe was unable to attend due to the snow and apologized to Walter McQuillen from the Makah Tribe for not inviting him directly and stated his knowledge of the inner politics has been limited, apologized for having a deep ignorance and thanked him for attending, nonetheless. 2023 Workplan Long Range Planning and Housing Policy Roadmap Staff Presentation City Manager John Mauro introduced Planning and Community Development Director Emma Bolin. Ms. Bolin presented the 2023 Workplan Long Range Planning and Housing Policy Roadmap Staff presentation which included the Council 2023 Workplan, Role of Government in Housing, Unlocking Housing: What We've Done, Community Engagement, Unlocking Housing: still more to do!, The Growth Management Act Framework, How to scope 2023 code changes/ Comp Plan updates?, Planning Timeline (2023-2025), and Resources needed. In response to Council's clarifying questions Ms. Bolin shared anyone can pay for an November 7, 2022 City Council Business Meeting Page 1 of 6 amendment, but for suggested amendments staff resources and funding will need to be prioritized. She explained anything suggested will be docketed for the 2026 update. Ms. Bolin explained the preliminary scope of work with consultant will be open mic, stakeholder interviews and a kickoff with staff to discuss each action under RCW 36.70a.600. She explained the actions stated on powerpoint were the ones she felt were in relation to their current constraints. Ms. Bolin explained there are a lot of incentives they can pass, and deed restrictions are in the disincentives category. She said they need to think strategically what can be done, whatever is done needs to induce supply. Ms. Bolin shared there is a "Housing for Ali" category in the Port Townsend Library Gingerbread House contest. COMMENTS FROM THE PUBLIC Public comment Jane Armstrong spoke about support for increase of resource to Planning Department, housing policy public input, guardrails, and concern for density without protections. Samantha Stromberg spoke about the need for lighting at the Port Townsend Skatepark. Liz Revord spoke about public engagement, housing policy, and need for City commitment to affordable workforce housing. Judy Alexander spoke about the housing crisis and the importance of collaboration. Jaisri Lingappa spoke about the need for information to be dispersed sooner to public and the need for affordable workforce housing. Kathryn Maly spoke about 7th Haven, Habitat for Humanity Construction on Landes, and relationship between affordability and code/zoning. Barbara Morey spoke about encouraging and incentivizing development of affordable housing and collaboration between City and community. Jamie Maciejewski spoke about appreciation for what City has done with coding/zoning, importance for community engagement and local people impact. Conner Bouchard -Roberts spoke about his appreciation for the Tenants" Rights Ordinance and increasing robustness of ordinance, affordable workforce housing, community engagement, and the importance to look for solutions outside of regular culture setting. City Staff Response In response to public comment Mr. Mauro thanked Ms. Stromberg for her eloquence and suggested getting in touch with Director of Parks and Recreation Strategy Carrie Hite for further discussion. In addition, Mr. Mauro shared there is always a place for public engagement regarding housing and explained the Planning Commission is a great opportunity. He also shared his respect for the Under the Tent event and explained that he has either met or offered to meet with at least six of the public November 7, 2022 City Council Business Meeting Page 2 of 6 speakers tonight and shared this has been an ongoing conversation and is not a surprise. He continued on to say his radio show is an open invite to engage as well. He stated the City is looking for ways to meet people where they are and is always open to ideas of how they can do better. Mayor Fabor shared that Council received information at the same time as the public and shared it is due to limited staff and appreciate the hard work that went into presentation. CONSENT AGENDA Approval of Bills, Claims and Warrants Approval of Minutes: September 12, 2022, October 10, 2022, October 17, 2022 Management Agreement for Kah Tai Prairie Pope Marine Fee Waiver Motion: Monica MickHager moved to approve the consent agenda with amendment to the October 10, 2022 minutes stating her name in roll call as she was present. Libby Wennstrom seconded. Vote: Motion carried unanimously, 7-0 by voice vote. UNFINISHED BUSINESS (NONE) Fort Worden PDA Annual Report Mr. Mauro introduced the Fort Worden PDA Annual Report and explained Council was presented with the Fort Worden PDAAnnual Report about a month ago and Council decided to defer discussion and questions until this meeting. In response to Council's clarifying questions Executive Director of the Life Long Learning Center Public Development Authority David Timmons stated the "Component Unit" is a definition used by State Auditor to identify a secondary interest an organization might have in another organization and confirmed this was related to the Foundation in report. Mr. Timmons explained Makers Square is essentially a Property Management Contract and all financial activity associated with PDA and Foundation as related to capital construction have been closed out. Mr. Timmons explained they will be moving forward within a more organized fashion with historic tax credit for Makers Square, he explained they have a blueprint they can utilize more efficiently, and they have legal framework in place they can use for all building that qualify in the Fort. Mr. Timmons explained Council member MickHager is referring to Makers Square Debt that was disclosed in filing as one of the LLC corporations that they discovered was the debt liability of the PDA which was a result of misunderstanding of the structure. In response to Council's clarifying questions Mr. Timmons confirmed the three findings from State Auditor's Office on page 8 of report have been addressed. In addition, he confirmed the PDA has no relationship as fiscal agents for any Component Units. Mr. Timmons confirmed there is a second CPA that is assisting in review of annual filings. Mr. Timmons confirmed the report referenced by Council member MickHager was the November 7, 2022 City Council Business Meeting Page 3 of 6 Accountability Audit Finding which was a report that concluded with all information regarding the internal investigation they assisted the PDA but also dealt with internal adjustments that were discovered and reported. Mr. Timmons confirmed findings are still valid and independent regardless of COVID pandemic effects, In response to Council's clarifying questions Mr. Timmons stated some items on the summaries were decided not to be corrected because it would not change the outcome and it would require them to do a lot of detail to reconcile and felt some corrections would not yield any benefits or change results, he went to explain there was one item they did track down and correct which resulted in being a duplication of posting error. Dr. Timmons explained "except as discussed with you" is boiler plate language for filing report and it means the PDA has disclosed everything they could. Mr. Timmons explained the Corrective Action on Debt Service and dealing with accounting mechanics for Capital projects to make sure in the future Historic Tax Credit is done correctly, they have established a Finance and Audit Committee which works with Oversight Committee, putting a second set of eyes on books and will be developing a new business plan and financial model in the next six months that will be submitted to State. In response to Council's clarifying questions Mr. Timmons explained items were not material because it does not financial inquisition nor Auditor opinion it reverified it was not a cash reconciliation program, and the cash was accounted for, and it was simply an accounting error and wasn't going to change any outcome. Mr. Timmons went on to explain the debt table covers all of the PDA debt. Mr. Timmons confirmed there is no debt carried by a Component Units for PDA that is not reported in table. Mr. Timmons explained they chose not to draw the $600,000 for glamping which is the difference between Revenue and Restoration Bond. Mr. Timmons explained Makers Square is not included in Balance sheet because it is created as more of a line of credit as opposed to a revenue bond, Fort Worden PDA Board Member Mr. King explained it is on balance sheet they work on under current liabilities. Mr. Timmons explained they are finalizing a new restructuring the board has approved which consolidates all bonds and debt into one new bond and went onto explain the 600k glamping has been applied as credit to the debt. In addition, they have created a structured payment plan which aligns with income from Makers Square rent as well as concession contract to guarantee repayment of all the debt under this formula. Glamping will be booked as a sunk cost investment. Mr. Timmons explained they are moving forward on critical Infrastructure Plan and Strategy so they will need Community and City political support in relation to State and Federal support. NEW BUSINESS Resolution 22-042 Authorizing the City Manager to Execute all Agreements Necessary to Complete the Evans Vista Master Plan Mr. Mauro introduced the Evans Vista Master Plan. Ms. Bolin explained the Evans Vista Master Plan and Selection Committee. She went on to explain they received four responses for Request for Qualifications (RFQ) and Selection Committee interviewed each one. She explained the Selection Committee unanimously selected Thomas Architectural Studios. In response to Council's clarifying questions Ms. Bolin explained the City has the current AMI range because of Commerce Grant and explained there is no reason to November 7, 2022 City Council Business Meeting Page 4 of 6 go above and beyond that. Mr. King explained they have to keep within the brackets of the State. In addition, he stated they would need to look into further and see what middle market needs are and it may be pushing 150% AMI. Mr. Mauro explained they are engaging with Commerce regarding this. There was no public comment. Council member Thomas explained he will be abstaining his vote due to not know enough about the topic, not because he is against it. Council discussed funding for project. Ms. Bolin explained the funding comes from the County's ARPA funding. Mr. Mauro explained the presentation provided included information regarding funding. Discussion ensued around the lack of public comment on topic and engagement with local housing providers. Motion: Libby Wennstrom moved to approve Resolution 22-042 Authorizing the City Manager to Execute all Agreements Necessary to Complete the Evans Vista Master Plan. Monica MickHager seconded. Vote: Motion carried, 6-0 by voice vote with 1 abstention. Third Quarter Financial Reports Mr. Mauro introduced the Third Quarter Financial Reports. Director of Finance and Technology Connie Anderson presented the Third Quarter Financial Reports which included an update on strong financial position, revenues, sales tax, lodging tax, vacancies in organization, inflation, budget supplementals, expenditure authority, fund summary and ending fund balance. In response to Council's clarifying questions Ms. Anderson discussed system development has had no expenses booked to this line. In addition, Ms. Anderson explained there may be a timing issue with the fleet equipment replacement fund. There was no public comment. There was no Council Deliberation and Action.. Budget Presentation Mr. Mauro introduced the Budget Presentation. Ms. Anderson presented the 2023 City Managers Proposed Budget Nut and Bolts Presentation which included Overview: Coordinating Efforts and Timescales, Plans that Work Together, Strengthen our Financial Position, 2023 Budget Fund Summary, Proposed ARPAAIIocation 2022-2024, 2023 Key Notes Operational Budgets, 2023 Key Notes Key Additions to Budget, Level of Service/2023 Position Considerations, Authorized Positions, 2023 Key Notes Capital Budgets, Strategic Use of One Time Funds, Debt Analysis and Strategic One Time Use of Funds, Final Thoughts and Discussion, and Next Steps. Mayor Faber suggested due to the lack of time to send any clarifying questions to November 7, 2022 City Council Business Meeting Page 5 of 6 Ms. Anderson to include in the next meeting. In response to Council's clarifying questions Ms. Anderson explained they budgeted Real Estate Excise Tax (REET) to come in strong and explained there is a 2 -month lag in the market. She explained the only expense coming out of that account is the debt payment. There was no public comment. Discussion ensued around the requested feedback from Ms. Anderson. Discussion ensued around position considerations listed in presentation except for Streets Maintenace Worker being funded. Mr. King shared the Streets Maintenance Worker is funded by Stormwater Fund. Council discussed their support for Option B on Strategic Use of One Time Funds and the procedural process to approve. Discussion ensued around the appreciation for the iterative and clear budget process. Discussion ensued around the 1 % tax levy topic for next meeting. PRESIDING OFFICER'S REPORT Mayor Faber provided the Presiding Officer's Report which included recording a promo for EngagePT for KPTZ. CITY MANAGER'S REPORT Mr. Mauro provided the City Manager's Report which included a shout out to Streets Crew, Facilities and Sister Agencies after recent storm, open positions, staff appreciation lunch, Northwest Womens Leadership Academy, Walnut Street, Transfer Station schedule, Golf Course Well Testing, Gaines St Pump Station, Golf Course/Mt. View Stakeholder Meeting, Community Health and Wellness, Evans Vista ILA, Mill Leadership, General Manager Jefferson Transit Authority interviews, Pope Marine Warming Shelter, and a reminder to vote. SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION Discussion ensued around next steps for Skatepark Lighting. Council member Thomas questioned if the signs in Chambers should state "Water Only". COMMENTS FROM COUNCIL There were no comments from Council. ADJOURN There being no further business, the meeting was adjourned at 9:55pm. Attest: City Clerk November 7, 2022 City Council Business Meeting Page 6 of 6