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HomeMy WebLinkAbout12042000CITY OF PORT TOWNSEND MINUTES OF THE REGULAR SESSION OF DECEMBER 4, 2000 The City Council of the City of Port Townsend met in regular session this fourth day of December 2000, at 6:30 p.m. in the Port Townsend Council Chambers of City Hall, Mayor Geoff Masci presiding. ROLL CALL AND PLEDGE OF ALLEGIANCE Councilmembers present at roll call were Joe Finnie, Allen Frank, Sydney Lipton, Geoff Masci, Bill Wolcott, Alan Youse and Vem Garrison. Staff members present were City Manager David Timmons, City Attorney John Watts, City Clerk Pam Kolacy, Public Works Director Ken Clow, Finance Director Michael Legarsky, Building & Community Development Director Jeff Randall, Planner John McDonagh. CHANGES TO THE AGENDA: None PRESIDING OFFICER'S REPORT Mr. Masci read proclamations proclaiming Community Chorus Week and Marjorie McPherren Day. Catherine McNabb accepted on behalf of the Community Chorus. CITY MANAGER'S REPORT Mr. Timmons reviewed a draft letter regarding the county's Unified Development Code. The draft letter, from Mayor Masci, to the Jefferson County Board of Commissioners identifies the primary issues of concern to the City: asphalt batch plants in critical aquifer recharge areas; saltwater intrusion and monitoring elimination; and allowable and prohibited uses in the light industrial/commercial zone (Glen Cove). Council consensus was to endorse the letter. Mr. Timmons then stated that a bill has been received for the sprinkler system at the Blue Heron Middle School. The funds were approved by the full council on the recommendation of the Finance Committee; however, the approval was subject to a memorandum of understanding with the School District for some equal value to balance the improvements made by the City to the school property. A memorandum of understanding (MOU) regarding citizen use of the Mountain View School site for future recreational activities has been signed. Mr. Timmons asked the council to confirm that this MOU meets the spirit of intent of the sprinkler system funding. Consensus was that the intent of the agreement was met and the $12,000 will be released. Mr. Timmons announced a meeting set for December 14, at 7:00 p.m. at the Community Center regarding a potential skateboard park at Mountain View School. City Council Minutes 1 December 4, 2000 COMMENTS FROM THE PUBLIC (regarding items not on the agenda) Adam Rymsza: regarding the prevailing wage issue for Waterman & Katz workers. Mr. Timmons stated that the Labor & Industries representatives cancelled the scheduled meeting with the City and we are trying to reschedule. He has directed the City Attorney to draft a letter to L&I in the hope of coming to closure relatively soon. Aric Spencer: Waterman & Katz prevailing wage issue. Marilyn Staples: in support of funding Main Street's full request from the General Fund. JoanI1 Saul: in support of fully funding the Main Street program from the General Fund. Cited award winning performance of organization; benefits to economic development of Main Street Programs. Mike East: in support of restoring $10,000 to the Main Street budget from the General Fund. David Hero, former president of Main Street: noted benefits from sales tax and B&O tax for the City. Cited many local events sponsored by Main Street. Stated funding is not a donation but an investment. Also noted the many volunteer hours contributed to the organization, with only one paid employee. Karen Gates Hildt: stated that viewing Main Street as a tourism organization is a misperception; the program is about economic development. Tourism is a byproduct of a vital and attractive downtown; businesses contribute B&O taxes; citizens shop at home more when businesses are healthier. City government should encourage development and redevelopment of the business district. Believes representatives of the people cannot on one hand support economic development and on the other cut a program that serves that important priority. Phil Johnson: cited Main Street Christmas celebration, Halloween parade and clam bake, all primarily local functions. In support of full funding for Main Street from the General Fund. Carol Shiffman, Director of Centrum: emphasized public/private partnerships, With Main Street as a shining example of that spirit. Also supports funding for the Library. Coila Sheard: in support of Main Street funding, concurred with other comments. Also in favor of police, library, and fire department funding. Suggested raising taxes for revenue. Byron Ruby: supports spending money locally. City Council Minutes 2 December 4, 2000 Pete Raab: asked for reconsideration of decision to cut Main Street funding. Stated that if tourism funding (LTAC) is tied to Main Street it would give the tourist dollar a strong hand and influence the direction of the Main Street program. Lyn Sterling, Co-director of Victorian Days event which is under the umbrella of Main Street: noted that the festival is now sanctioned by the National Trust. Cited initial letter from 1976, citing a town with little potential that desperately needed help. Also noted the many volunteer hours contributed. Adam Rymsza: favorable comments about his discovery of Port Townsend, the Food Co-Op and the city portrait. Byron Ruby: favorable comments on Port Townsend history. Tim Caldwell, port Townsend Chamber of Commerce: Bite of Port Townsend is another local program, supported by local restaurants who do not contribute to hotel/motel revenue. He stated that the Economic Development Council, Main Street and Chamber of Commerce have different but complimentary missions. Noted efforts to encourage businesses in empty second and third floors downtown. PUBLIC HEARINGS None CONSENT AGENDA Motion: Mr. Frank moved for approval of the following items on the Consent Agenda with one correction to the November 29 minutes (page 8 - the vote on the Finance Department budget should read 5-0 rather than 5-2.) Mr. Wolcott seconded. The motion carried unanimously, 7-0 by voice vote. Approval of Bills, Claims and Warrants Vouchers 74138 through 74267 in the amount of $208,876.18 Approval of Minutes Special Meeting of November 15 Regular Session of November 20 Special Session of November 29 UNFINISHED BUSINESS ORDINANCE 2754 ADOPTION OF THE YEAR 2001 BUDGET Staff Presentation Mr. Timmons noted that council actions at the November 29 meeting left a shortfall of $61,742 in the General Fund, which would draw from the estimated fund balance of City Council Minutes 3 December 4, 2000 $529,000. The total fund balance will be about $582,000, roughly 11.25% which is still above the target of 10%. All other funds remain the same. In response to council's directive to bring the budget into balance, Mr. Timmons listed the following: After looking hard at sales tax income, staff realized we have been very conservative in our projections and are comfortable estimating another $25,000 in retail sales tax as well as $2,000 in interest income.. In addition, the negotiation of a franchise for solid waste would eliminate the necessity of the solid waste enterprise fund. After reconciling the transition, the fund will be closed out and approximately $33,000 will be transferred into the General Fund. This provides about $60,000 in new revenue. Another $9,000 adjustment was made to the expense side of the budget through finance committee actions. Revenues would exceed expenditures by $7,000, which gives another one percent to the fund balance. He then stated that factors yet to be determined include: Labor agreement costs: The bargaining units have opened the door part way, although they rejected the initial proposal, they did leave an opening for discussions. He will be meeting on Thursday, December 7 with union representatives. Contract with Fire District 6: city and district representatives met today and there is a good chance that a suitable compromise will be reached. Library: the Library Director and staff and Library Board have designed a proposal that meets a good share of the council's expectations, but will fall about $7,000 short of providing requested level of service. He commended them for their work toward reaching that goal. Regarding suggestions that outsourcing should be explored as a means of saving money, he noted much of the current budget crisis can be attributed to interlocal agreements with the County for shared services. In addition to their expectation that we will fund the regional services agreements at $421,000, we are now getting bills for additional jail costs which are unbudgeted which may total $600,000 for the last three years. Mr. Timmons asked the council to move forward to closure on as many issues as possible, to support and trust the manager's recommendation and work out details with staff to reach our goals on as many of those issues as possible. He said we need to focus attention on solving the crisis that faces us in light of the County agreement because that could bankrupt the City. It will take a huge effort to resolve this issue in a fair and timely manner. City Council Minutes 4 December 4, 2000 The ordinance before the council incorporates the elements he has recommended to bring the budget into balance. Public Comment Byron Ruby: hopes to resolve differences and achieve cooperation with the County. David Hamilton: noted that some believe there is a mandate to slash essential services in order to hold taxes and fees steady or reduce them, but cited support by the citizens of Port Townsend for the sales tax hike to benefit Jefferson Transit and support for a county commissioner candidate who ran on a sustainable growth platform which shows that most citizens are not strongly in favor of tax cuts if services will then be cut that they feel are necessary to the city's quality of life. He suggested the City investigate the possibility of removing the B&O exemption on beer and wine at the retail level. He also suggested reducing council salaries by 50% and funding the Main Street program or forgoing payment altogether and funding the library. He stated that the mandate from the voters was to create a professional government and city manager, but not to cut services or eliminate taxes. John Lockwood: stated that current residents bear the burden of increased city services to support development. If city services and infrastructure decline, growth may slow. He urged the council not to leave office with an infrastructure deficit. Nancy Dorgan: suggested the City will suffer if more staff reductions are made. Quality of library will suffer under reduced funding. Bill Maxwell, Library Board: in support of the library, Main Street, Arts Commission, and Parks. Asked the council to listen to the people, stating all here are supporting Main Street and Library, are courteous, and etc., and urged courtesy in dealings. He stated he would pay more in property taxes because the town is worth it. Tim Caldwell, Chamber of Commerce: supports recommendation of LTAC budget as presented. Motion: Mr. Wolcott moved for adoption of Ordinance 2754. Seconded by Mr. Lipton. Council Discussion Mr. Garrison stated that limitations of Initiative 722 would not allow taxes to be raised enough to matter given the size of the budget; also continues to believe that Main Street enhances tourism to some extent. Looking at the library in context, city library spends a greater percentage on staffing than the county library. Supports further discussion on the budget and no action this evening. Mr. Wolcott suggested removing $6,000 funding from the Economic Development Council (EDC) and using the money for Main Street, then challenge the City Council to find the extra $4,000. City Council Minutes 5 December 4, 2000 Mr. Frank described the county's LTAC ordinance and said we may want to model after some portions. He believes we support several organizations which serve the same purpose and it is hard to assess the true impact of those monies. He also spoke in favor of delaying budget adoption pending further discussion. Mr. Finnie expressed support for the motion and stated he would trust the City Manager to work out details of the General Fund. He stated that if property taxes had been raised, another $21,000 would have been raised which could have been used for Main Street or Librar-y funding. He asked if sales tax could be increased as a source of revenue. Mr. Youse supported the re-designation of EDC funding to Main Street, citing the removal of "business recruitment" from its bylaws. He noted that total library funding was increased this year, and said developing efficiencies city-wide is a lengthy process; outsourcing may not be an option because of the collective bargaining contract. He supported delaying adoption of the budget. Mr. Lipton encouraged passage of the budget to free the manager to negotiate with the County toward resolution of the major financial problems rather than working over the small numbers. He also noted that a 2% raise in property taxes would not generate much income; however, in the utility funds there are pending mandated capital projects which may require investment not planned for at this point in time. An increase in utility rates may be necessary or services may have to be cut. With 1-722 pending, taxing is not the answer. We must depend on the City Manager to come up with methods and ways of controlling costs. Mr. Masci spoke in support of the motion. He noted that the City is at its sales tax cap so that is not an option for increasing revenues. He stated that the budget is an estimate and roadmap which should be adopted. In the next months, the budget framework will allow us to make policy directives that will give the City Manager the ability to redirect funds in certain ways. He reminded the council of Mr. Timmons proposal of a graded response to the change in government over the first three years; last year changes and economies were made, this year the budget should be approved so the council can get to the business of policy making instead of worrying about smaller figures which by law are outside their purview. He added that he believes the County needs to take a more conciliatory attitude towards the City and work with us in a cordial and problem solving manner. We are now assured of a balanced budget which is our legal responsibility. All other issues can be explored in the coming year. Mr. Frank then requested an executive session for an update on the bargaining unit negotiations. Mr. Masci suggested completing discussion on the budget and then adjourning to an executive session. Mr. Finnie added that if better information regarding sales tax could be gathered, a correlation between festivals and income might result in resolution of the support of City Council Minutes 6 December 4, 2000 special events issues. He added that because he still has respect for the leadership of EDC he is hesitant to support cutting their funding; however in the long term, if we don't see the EDC performing business development and support functions, he would support diverting those funds to another community organization. Mr. Wolcott stated that in defense of the elected council members, none took office with an idea or intent that the only way to move forward is cutting taxes; most had the idea that there were more efficient ways to use the taxpayer's dollars. He commended the collaborative effort among the city manager, staff, and city council. He added that the council has been challenged both for and against raising taxes. There is no particular consensus and the tide will always change. He noted that all council members must remember that the money we are using is the money of the citizens. The intent has not been to cut to the bone in a destructive manner to the community. Mr. Garrison again requested more time for deliberation, stating that there is plenty of time before the statuary deadline for budget adoption. EXECUTIVE SESSION Mr. Masci announced an executive session to discuss personnel issues. The session was expected to last 20 minutes, with no action anticipated. The council adjourned to executive session at 8:52 p.m. RECONVENE The meeting was reconvened at 9:17 p.m. Vote: The motion carried unanimously, 7-0 by roll call vote. RESOLUTION 00-069 ENDORSING LEGAL ACTION AGAINST THE STATE OF WASHINGTON FOR FAILURE TO PROVIDE FUNDING TO SUPPORT MANDATED LOCAL SHORELINE MANAGEMENT ACT UPDATE RESPONSIBILITIES Staff Presentation Mr. Timmons noted that this resolution has been drafted by the City Attorney after the council's first touch and discussion on November 20. Mr. Timmons read the resolution into the record. The resolution states that the Port Townsend City Council supports and endorses a legal action by the City of Chelan and other jurisdictions in challenging the state's unfunded Shoreline Management Act updates without providing reimbursement as required by law. The Mayor and City Manager may take necessary steps to allow the City of Port Townsend to join such a lawsuit in name only. Public Comment: None City Council Minutes 7 December 4, 2000 Motion: Mr. Garrison moved for adoption of Resolution 00-069. Mr. Wolcott seconded The motion carried unanimously, 7-0 by voice vote. NEW BUSINESS ORDINANCE 2753 AMENDING THE PORT TOWNSEND MUNICIPAL CODE, CHAPTER 2.72 (HISTORIC PRESERVATION COMMITTEE) TO QUALIFY THE CITY FOR RECOGNITION AS A CERTIFIED LOCAL GOVERNMENT (CLG) WITH THE NATIONAL PARK SERVICE AND THE STATE OFFICE OF ARCHEOLOGY AND HISTORIC PRESERVATION Staff Presentation Mr. Timmons noted that a first touch presentation had been made to the council by a representative of the Washington State Office of Archeology and Historic Preservation (OAHP). Certain amendments to the Municipal Code are necessary to qualify the City for recognition by the National Park Service and the OAHP as a Certified Local Government. This status would enable the City to apply for grants that foster historic efforts and would create a Local Register of Historic Places to be maintained by the Historic Preservation Committee, and would extend Special Tax Valuation opportunities to all qualifying properties within the city limits. Public Comment Barbara Marseille, Historic Preservation Committee: supports proposal, commends all involved for getting the project to this point. Motion: Mr. Lipton moved for adoption of Ordinance 2753. Mr. Frank seconded Discussion Mr. Masci stated that he would be interested in knowing whether the tax incentives would mean a loss of income to the ~ity and how much tax revenue might be lost. Ms. Marseille stated that one reason for the program's establishment is to help improve tax revenues for cities, by providing impetus and inspiration in neighborhoods through restoration of historic buildings. There were clarification questions about section 2.72.65 (2)(b): suggested language changes were either: "In the case of individual properties, the designation shall include all features which contribute to its designation which may include interior or exterior features or outbuildings." (Mr. Watts) City Council Minutes 8 December 4, 2000 "In the case of individual properties, the designation shall include all features which contribute to its designation." (Mr. Masci) Motion: Mr. Finnie moved to postpone action on the motion until the council's suggestions are incorporated into a revised draft. Mr. Lipton seconded The motion carried unanimously, 7-0 by voice vote. HOME OCCUPATION CODE Staff Presentation Mr. Timmons presented a draft proposal for changes to the home occupation code, noting that study and passage of revisions is scheduled for January. Council Discussion Mr. Masci stated his support for changes to the home occupation code. He said the project will probably be remanded to the Community Development Committee with staff support from Building & Community Development. Motion: Mr. Wolcott moved to direct staff to pursue proposed changes and bring them before the council for assignment and deliberation. Mr. Frank seconded The motion carried unanimously, 7-0 by voice vote. ADJOURN There being no further business, the meeting was adjourned at 10:10 p.m. Attest: Pamela Kolacy, CMC City Clerk City Council Minutes 9 December 4, 2000