HomeMy WebLinkAbout11131996 PORT TOWNSEND CITY COUNCIL
MINUTES OF THE CONTINUED SESSION OF NOVEMBER 13, 1996
The City Council of the City of Port Townsend met in continued session this 13th day of
November, 1996, at 7:04 p.m. in the Council Chambers of City Hall for a workshop to complete
deliberations and make preliminary adjustments to the proposed budget and set 1997 tax levies
by ordinance, Mayor Julie McCulloch presiding.
ROLL CALL
Councilmembers present at Roll Call were Dan Harpole, Kathryn Jenks, Ted Shoulberg, Ian
Keith, Diane Perry-Thompson, Bill Davidson and Jean Camfield. Staff Members present were
City Administrator Michael Hildt, Library Director Linnea Patrick, Public Works Director Bob
Wheeler, City Treasurer Derek Stacey Thompson, City Clerk Pam Kolacy..
COMPLETE DELIBERATIONS & MAKE PRELIMINARY ADJUSTMENTS TO PROPOSED
BUDGET
Mayor McCulloch asked the Council's pleasure on procedure for the meeting. It was agreed that
each section of the budget would be considered individually and approved in concept, pending
the final public hearing. Motions for substantive changes would be make during the
consideration of the individual budget, but votes would be held at the end of the meeting when
the effect of all the changes together could be considered.
There were no comments on the tax revenue estimates.
Summary of Expenditures:
Camfield raised questions regarding the reserve for public access television, including whether
there would be a dedicated fund and whether consultant services would be a separate line item
under contractual services. She also raise the issue of the new additional 2% for the franchise fee
(raised from 3% to 5%)- and whether or not that would be part of government receivables, and
whether it would be a self-enCapsulated fund, with expenditures in a sub fund.
Shoulberg noted that for public understanding, there should be some cross reference to different
expenditures related to cable tv. for ease of reading. He also noted the need for operation and
maintenance funds for the station.
Thompson stated his understanding of the conversation is that Council wishes a full disclosure of
what money the city is receiving regarding the cable franchise and that these funds be reserved
for specific services, with line item expenditures. The money is presently identified as a separate
revenue source and as a reserve for public access tv. Putting the money into a reserve does not
schedule it for expenditures; they are separated out of the projected ending fund balance for a
specific use. He expressed reservations about creating a separate fund since a tree separate fund
City Council Meeting Nov. 4 (continued to Nov. 13) Page 1
has many stand alone accounting requirements which may be onerous; he noted that full
accountability within the current fund through the method of presentation.
McCulloch noted that Council may reallocate the 2% now being received from the general
government fund, but that would have to be counterbalanced elsewhere in the budget.
Shoulberg also noted the need for staffing the station.
Harpole stated possible uses of the income might be to pay down debt if incurred; he reiterated
the need for an operations and maintenance budget and the need to think beyond the capital
expenditures and set up costs.
McCulloch recommended adding an additional category in contracted services..
Shoulberg said it is necessary to fund even a small part of expenses as an indication of the city's
support until it is clear how all entities are going to fit into the complex package. He again stated
the need for consultant, staff and maintenance.
Shoulberg moved that 40% (approximately $17,100) of the cable franchise fee be set aside to
fund operations and maintenance of the upcoming public access television station and contract
services for a variety of consulting services. Harpole seconded.
Mayor/Council:
Councilmember Perry Thompson asked where salaries appear.
McCulloch stated that staff salaries are included in the annual salary ordinance; council and
mayor salaries are included in the Mayor/Council budget.
Shoulberg moved that Council member salaries should be raised to $400 per month (for those
who become eligible under the law). The motion died for lack of a second.
Jenks wanted to be sure that the machinery and equipment category had enough funds for tapes
because of the copies needed for open record hearings. Kolacy noted that tapes are purchased
through Clerk or BCD budget and funds are sufficient.
McCulloch noted that advertising was underbudgeted last year and is difficult to control because
of legal notice requirements. It was questioned whether this was the appropriate department or
whether the City Clerk should oversee the advertising funds.
Harpole moved that the advertising budget currently in Mayor/Council be transferred to the City
Clerk's budget. Davidson seconded. The motion passed unanimously.
Perry Thompson moved approval of the Mayor/Council budget in concept subject to final public
hearing, with the $11,000 advertising budget transferred to the City Clerk's budget. Davidson
City Council Meeting Nov. 4 (continued to Nov. 13) Page 2
seconded. The motion carried unanimously.
City Administrator:
Shoulberg moved for approval of the City Administrator's budget in concept subject to the final
public hearing. Keith seconded. There was no discussion and the motion carried unanimously.
City Attorney:
Shoulberg moved for approval of the City Attomey's budget in concept subject to the final public
hearing. There was no discussion. The motion carded unanimously.
Finance:
Davidson moved to approve the Finance in concept subject to final public hearing. Camfield
seconded. There was no discussion and the motion carried unanimously.
Utility Billing:
Camfield movedd for approval of the Utility Billing budget in concept subject to the final public
hearing. Perry Thompson seconded. There was no discussion and the motion carried
unanimously.
Police:
Shoulberg moved for approval of the Police budget in concept subject to the final public hearing.
Davidson seconded.
Keith questioned the location of payment to the equipment rental fund, noting that it is shown as
a miscellaneous expense. Mr. Hildt agreed it was not a good spot to display, and should be a
new item. Shoulberg stated it would be appropriate categorization here to show where it is going
(to equipment rental fund). Hildt stated he and Mr. Thompson will work out a better way of
displaying this expenditure before the adoption of the budget ordinance.
Thompson noted that what has happened is the police have changed the way they obtain vehicles,
and when the budget was prepared it was reflected in this manner; he has reservations about how
it is displayed, but it is essentially the way it was in the police submittal. He would prefer to put
it into capitalized leases and rentals. Keith noted he would prefer to accept the promise that it
will be presented again in a more logical fashion rather than directing a specific way of dealing
with it that might be cumbersome to the treasurer.
There was no further discussion, and the motion passed unanimously.
Fire Department:
McCulloch noted that since the budget was prepared, the Fire Department has experienced some
emergency facility inadequacies. She recommended that an additional $34,000 be funded in
1997 for these interim needs. This would in essence be a transfer from Fund 180 resources (Real
Estate Excise Tax) to Fund 180 Expenditures "Fire Hall Remodel"of $29,000.
City Council Meeting Nov. 4 (continued to Nov. 13) Page 3
Harpole asked about the $9500 increase in machinery and equipment line item. McCulloch
noted it was the combination of the ambulance retrofit and self-contained breathing apparatus.
There was discussion about whether the Council should deal with the issue of a new pumper
track this evening, but it was agreed that more information was needed by Council before making
a decision. The purchase may be considered early in 1997 as a supplemental request.
Harpole moved for approval of the Fire and Emergency Services budget in concept, subject to
final public heating. Jenks seconded. There was no discussion and the motion carried
unanimously.
City Clerk:
Perry Thompson moved to approve the City Clerk's budget in concept, subject to final public
hearing, with the addition of $11,000 as a transfer from the mayor/council advertising budget to
the Clerk's advertising budget. The motion passed 6-1, with Shoulberg in opposition.
Shoulberg then noted he believed that showing ½ of the Clerk's salary in the Clerk's budget and
½ in the Public Works budget was misrepresentative to the public. Mr. Hildt pointed out that all
salaries are listed in total at the end of the budget. Thompson stated that many of the narrative
supports for spreadsheet dollar amounts are inadequate for the purposes for which we use the
budget, particularly in using it as communication to the public.
Shoulberg stated he could withdraw his opposing vote if an explanation were included. It was
agreed that the sources of salary would be included in the narrative.
Building & Community Development:
There was discussion about whether the loss of the director would impact next year's budget.
Davidson noted there may be a necessary increase in the professional services budget so that
deadlines can be met. Because of the change, Council agreed not to take any action on this
budget at this time.
Contractual Services:
Jenks noted that she would like to increase some funding for contractual services.
McCulloch reminded Council members stated that all funding for contractual services comes
from the current expense fund, and that all are in competition with city departments for funding.
Jenks then moved to increased the Bergita House budget allocation from $2500 to $3500.
Shoulberg seconded.
Keith remarked that the Bergita House in his recollection has a total budget in the range of
$100,000. He stated that for many of these organizations, it is helpful to have more token
financial support from the city so that they may be eligible for grant funding. This primary
purpose is being fulfilled in this case.
City Council Meeting Nov. 4 (continued to Nov. 13) Page 4
Harpole asked what the Boiler Room. Davidson noted that they asked for $2500 and received
that amount.
Jenks amended her motion to increase the Bergita House contract amount $5,000 to a total of
$7,500 since that is what they requested.. Shoulberg seconded.
Harpole cautioned tripling the amount allocated simply because that is the amount requested. He
noted that all agencies don't know how to come in and ask for funding on equal footing. Perhaps
the needs are equal, but the Council cannot have any way of soliciting or balancing according to
many factors; he noted he was reluctant to give a large amount to one and not another only on the
basis of what was requested.
Camfield noted that Bergita House's organization is much more sophisticated than, for example,
the Boiler Room, and that shouldn't penalize the Boiler Room. Camfield noted that the library,
recreation program, etc., is social service in another form; it's not as though the city does not do
any social service. She stated that the Council must consider the balance; are the services the city
provides through the library less important than Bergita House? She also said that what Bergita
House asked for originally was city participation so they would be more successful in getting
grants. Davidson stated that the $5,000 would have to come from somewhere and he would
rather reduce other budgets than reserves; however, many other departments are under funded.
He cautioned that when you start thinking about increasing an expense by $5,000, you must take
into consideration that it will be taken from somewhere else.
Shoulberg then moved to approve the rest of the contractual services in concept pending final
public hearing. Harpole seconded. There was no further discussion and the motion carried
unanimously.
City Hall:
Keith questioned the line item regarding machinery and equipment. Mr. Hildt stated the money
is for a pull down screen, shades for the windows and a decent projector for public presentations
at the Council meetings. Breakdown is approximately $2000 audio-visual, $500 furniture, $1400
railing settlement, $10,000 for improvements.
Harpole moved to approve the City Hall budget in concept, pending final public hearing.
Camfield seconded. The motion carried unanimously.
Public Restrooms, Arts Commission, Civil Service Commission, Safety Committee:
Camfield moved to approve thc above department budgets in concept, pending final public
hearing. Davidson seconded. The motion carried unanimously.
Garbage Fund:
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Page 5
Keith moved the budget for the garbage fund be approved in concept, pending final public
hearing. Davidson seconded. The motion carried unanimously.
Streets division:
Davidson moved to approve the Street Division budget in concept, pending final public hearing.
Harpole seconded. Keith asked for clarification on the resources side. He questioned whether
the amount "street cleaning for drainage" is transferred from the storm fund and whether
therefore the storm fund is paying for streets. Hildt noted that part of the benefit of street
cleaning is to reduce debris, therefor $25,000 is allocated from the storm utility. The vote was
taken, with six in favor, Keith opposing.
Arterial street fund:
Davidson moved to approve the Arterial Street Fund in concept, pending final public hearing.
Perry Thompson seconded. The motion passed unanimously.
Library:
Jenks noted that the final decision on expenditures rests with the Library Board; that the Council
can't deal with specific issues. She questioned whether, with the amount budgeted, the inter-
library loans will remain at the same level. Ms. Patrick replied that would only happen if another
$10,000 were allotted.
Keith stated that the $10,000 shortfall is coming out of new and replacement books and
equipment, contrary to the Capital Facilities Plan, which includes a level of service which would
require building the collection. Keith moved that the library expenditure funding be increased by
$11,502, to bring the Total New Books & Equipment and Total Replacement Books & Videos
back to the 1996 actual expenditure level. Davidson seconded the motion. The vote was held to
the end of the meeting.
Parks:
Director Bob Wheeler reminded the Council they are considering the updated version presented
in the workshop meeting, and directed them to changes on page 9 and pages 56 and 57
Harpole moved for approval of the Parks budget in concept, pending final public hearing.
Shoulberg seconded. The motion carried unanimously.
Park Board:
Shoulberg moved for approval of the Park Board budget in concept, pending final public hearing.
Camfield seconded. The motion carried unanimously.
Recreation:
Mr. Wheeler noted the Recreation budget will be finalized in writing at the Nov. 18 council
meeting. The impact is an additional $14,000 to be added to the recreation budget for salaries
and benefits, taken from reserves. This will decrease the ending fund balance.
City Council Meeting Nov. 4 (continued to Nov. 13) Page 6
Harpole moved that adjustments be made to the Recreation budget which reflect an increase in
funding needs of $14,000 and such adjustment will require an increase to the Parks Fund
Resources. Shoulberg seconded The vote was held until the end of the meeting.
Hotel Motel Transient Tax Fund:
Keith moved the Hotel Motel Transient Tax Fund be approved in concept, pending final public
hearing. Perry Thompson seconded. The motion carded unanimously.
Bond Redemption:
Shoulberg moved for approval in concept, pending final public hearing, of the 1990 Limited
Obligation Bond Redemption Fund, The 1991 Limited Obligation Bond Redemption Fund, and
the 1995 Limited Obligation Bond Redemption fund, with correction of a typo on page 62.
Harpole seconded. The motion carded unanimously
Capital Improvement Fund:
Camfield moves to approve the Capital Improvement Fund, with the change of increasing the fire
hall remodel line item $29,000, from $5,000 to $34,000, and decreasing the Real Estate Excise
Tax fund by that same amount. Keith seconded. The motion carded unanimously.
Community Development Block Fund Grant:
Davidson moved for approval in concept, pending final public hearing, of the Community
Development Block Grant fund. Perry Thompson seconded. Keith questioned the 1997
appropriation of $25,000. McCulloch noted it goes into the revolving loan fund. There was no
further discussion, and the motion carded unanimously.
Wastewater Treatment Plant Construction:
Mr. Hildt noted this item should be folded in elsewhere and suggested passing on this item until
that information was made clear.
1993 General Obligation Bond Projects
This item was also passed on, pending further study.
Water/Sewer Fund
Harpole moved for approval in concept, pending final public heating, of the Water-Sewer Fund.
The motion carded unanimously.
Water Distribution Division - Public Works
Shoulberg questioned whether there is capitalized labor included. Wheeler answered that that
would only have been for the proposed engineering group, now on hold. Shoulberg stated his
understanding that design and engineering studies are theoretically outsourced in this document
and Wheeler affirmed that, stating that it is similar to what we're doing now.
Shoulberg questioned whether when the budget is approved, would it continue the same level of
staffing, including a GIS technician. Wheeler answered there is funding for a coordinator and
City Council Meeting Nov. 4 (continued to Nov. 13) Page 7
additional resource people. He stated there are two sections to GIS - contractual and city
employees. If the budget were reduced and staff reductions were necessary, the bargaining unit
contract would be followed as far as ,'bumping" employees.
Harpole noted that when GIS was discussed at a previous workshop, there was generally a nod of
acceptance for the program. He asked whether other Council members were concerned about
this aspect.
It was agreed by Councilmembers that line items for GIS line items should be broken out.
Davidson moved to approve the Water Distribution budget in concept, pending final public
hearing, reducing the Water System Automation line by $40,000 and adding that $40,000 under
a GIS line item. Jenks seconded. There was brief discussion. The motion carried 6-1, with
Shoulberg opposed.
Water Quality:
Mr. Wheeler noted there is no GIS item in this budget, and that additional needs for funding may
occur, in particular office space for the water quality dept. Who are losing their space at the
school and additional testing for coliform that will be required by the state next year. He
estimated office space would cost about $5,500 and testing around $6,000.
Harpole moved for approval of the water quality budget in concept, pending final public hearing.
Camfield seconded. The motion carded unanimously.
Wastewater Treatment Facility:
Harpole noted the GIS line should be put back in and removed from the Comp Sewer Plan line.
He moved for adoption in concept, pending final public hearing, with the GIS line put back in
and $40,00 transferred from the Comp Sewer Plan line to a separate GIS line item. Davidson
seconded. The motion carded unanimously.
Wastewater Collection:
Perry Thompson moved for approval in concept, pending final public heating, with the change
that $40,000 be removed from the Master Plan Implementation line and placed in a GIS separate
line item. Jenks seconded. The motion carded unanimously.
Biosolids Composting Facility:
Jenks moved for adoption of the Biosolids Composing Facility budget in concept, pending final
public hearing. Perry Thompson seconded. The motion passed unanimously.
Storm and Surface Water Utility:
Mr. Wheeler noted a change in the salaries and wages line to $81,085 (from $51,846) and in
Total personnel benefits from $14,876 to $28,520. He noted this was for an additional
maintenance person, to do ditch cleaning, etc, felt by the Utilities Committee to be a very high
priority. He noted it was in first budget draft, but not in this one, and was just a mistake.
City Council Meeting Nov. 4 (continued to Nov. 13) Page 8
Wheeler then noted that there was too much GIS money included and that it should be taken out
of the comp sewer plan. This changed the Wastewater Collection budget, as $40,000 did not
need to be moved from Comp Sewer Plan to GIS. The maker of that motion (Perry Thompson)
and seconder (Jenks) agreed to replace the previous motion on wastewater collection, eliminating
the new GIS line). The motion passed unanimously.
Jenks moved for approval of the Storm & Surface Water Utility budget in concept, pending the
final public heating, with salary changes as detailed by Mr. Wheeler and creating a line item for
GIS from the Master Plan line item. Harpole seconded. Keith noted that this would throw the
ending fund balance wildly out of line, and stated he needed more information before voting.
The motion was held.
LID
Keith moved for approval of the Local Improvement District 1, PT Local Improvement Guaranty,
and Local Improvement District No. 2 budgets in concept, pending final public hearing,
Davidson seconded. The motion carried unanimously.
1956 Water Works and System Construction Fund:
Camfield moved for approval of the 1956 Water Works and System Construction Fund budget in
concept, pending final public hearing. It was noted that this fund has been completed and will be
washed out with a proper designation for capital and after proper investigation. The motion
carded with 6 in favor, one absent.
Water-Sewer Revenue Bond Redemption Funds:
Davidson moved to approve the 1978, 1967, 1978, and 1992 Water-Sewer Revenue Bond
Redemption Funds in concept, pending final public hearing. Harpole seconded. Ian noted that
on the '67 bond, the net result is to reduce reserves - apparently it is approaching maturity. Mr.
Thompson noted that is looks as though the remaining balance will be used to make the last
payment and the extra will be a "windfall". The motion carried unanimously.
Equipment Rental Fund:
Updated pages were provided to Council at the last workshop meeting. Davidson moved for
approval of the Equipment Rental Fund budget in concept, pending final public hearing. Perry
Thompson seconded. The motion carried unanimously.
Firemen's Pension & Relief:
Davidson moved for approval of the Fireman's Pension and Relief Fund in concept, pending
final public hearing. Harpole seconded. The motion carded unanimously.
Mayor McCulloch then noted the supplemental budget before Council will have an impact on the
beginning fund balance of $40,486 as proposed. If applied directly, it will take from $500,000
down to a bit under $450,000. She also pointed out that the challenge this year is that the annual
expenses exceed the projected revenues by $200,000, leaving a contingency of about $168,000k.
City Council Meeting Nov. 4 (continued to Nov. 13) Page 9
If Council were to increase allocation to contingency to 2.5% annually instead of 2%, could still
meet goal by 2002.
This concluded the item by item discussion of the budget. Four motions remained on the floor.
The motion to set aside 40% of the cable franchise fee to fund operations and maintenance of the
upcoming public access television station and for various contractual services carded, with six in
favor, Keith opposed.
Motion to increase Bergita House contractual amount to a total of $7,500 (increase of $5,000).
Discussion: Keith again noted it would be well to have equity among organizations Council is
funding at a small level; in other words, Boiler Room doesn't get an increase simply because they
didn't ask for one and Bergita House gets one because they did. A more equitable policy would
be to designate more total money for local social services and invite agencies to apply for those
funds. He stated he feels agencies who recognize the City has a very tight budget and therefore
limit their request would be penalized.
Shoulberg asked Jenks to amend the motion to add $1,000 to the amount rather than increasing it
by $3,500. Jenks agreed. The motion then failed 4-3, with Camfield, Davidson, Perry
Thompson and Keith opposing.
The motion proposing an $11,502 increase in the overall Library budget was 4-3 in favor, with
Shoulberg, Harpole and Jenks opposing.
The motion to add funding to the Recreation program passed unanimously.
Shoulberg moved to reduce the ending general fund balance by $42,974 to fund additional
expenses for Recreation, Library and Cable TV, with property and sales taxes reallocated
accordingly. Harpole seconded. The motion carded unanimously
B. Ordinance 2549, Fixing and Adopting 1997 Property Tax Levies.
Mayor McCulloch read the Ordinance by title. She gave a brief background statement, also
noting that Port Townsend is in the bottom quartile of the state for property taxes.
Shoulberg moved that the first reading be considered the second reading and the third be by title
only. Keith seconded. The motion carded unanimously.
Harpole moved for approval of Ordinance 2549, Camfield seconded. The motion carried
unanimously by roll call vote.
ADJOURNMENT
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Page 10
There being no further business, at 11:45 p.m., Mayor McCulloch adjourned the meeting.
Attest:
Pamela Kolacy
City Clerk
City Council Meeting Nov. 4 (continued to Nov. 13) Page 11