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HomeMy WebLinkAbout10152001CITY COUNCIL OF THE CITY OF PORT TOWNSEND MINUTES OF THE SPECIAL BUSINESS SESSION OF OCTOBER 15, 2001 JOINT PUBLIC HEARING WITH PUBLIC UTILITY DISTRICT #1 OF JEFFERSON COUNTY The City Council of the City of Port Townsend met in special session this fifteenth day of October, 2001, at 6:30 p.m. at the Pope Marine Building, Mayor GeoffMasci presiding. ROLL CALL AND PLEDGE OF ALLEGIANCE Councilmembers present at roll call were Joe Finnie, Allen Frank, Vem Garrison, Geoff Masci, Syd Lipton, and Alan Youse. Bill Wolcott was excused. Staff members present were City Manager David Timmons, City Attorney John Watts, Public Works Director Ken Clow, Water Quality Manager Bob LaCroix, Finance Director Michael Legarsky and City Clerk Pam Kolacy. Public Utility District #1 Commisisoners Ken McMillen, Dick Shipman and Wayne King were also present, as well as PUD Manager Jim Parker and PUD Attorney Lee Voorhees. PUBLIC HEARING ORDINANCE 2777 AN ORDINANCE OF THE CITY OF PORT TOWNSEND MAKING FINDINGS AND DECLARATIONS; APPROVING AND AUTHORIZING AND DIRECTING THE EXECUTION, DELIVERY AND PERFORMANCE OF A UTILITY PURCHASE AND EXCHANGE AGREEMENT WITH JEFFERSON COUNTY PUBLIC UTILITY DISTRICT NO. 1, FOR THE SALE AND EXCHANGE OF CERTAIN WATER UTILITY PROPERTIES AND FACILITIES OF EACH PARTY, AND PROVIDING FOR OTHER CONSIDERATION; AUTHORIZING AND DIRECTING THE CITY MANAGER AND OTHER CITY OFFICIALS AS NECESSARY TO SIGN ALL APPROPRIATE DOCUMENTS AND DO ALL THINGS REASONABLE AND NECESSARY TO EFFECTIVELY AND EFFICIENTLY CARRY OUT AND PERFORM SUCH AGREEMENT; AND RATIFYING CERTAIN ACTIONS Mayor Masci, with the agreement of Mr. McMillen, opened the public hearing. He asked if any of the city council members or PUD commissioners had any interests, financial or property, in the outcome of the hearing. There were none. City Manager David Timmons summarized the extensive packet information. He noted that the discussions surrounding the water system transfer date back to at least 1993. He reviewed the administrative decision process and public process which have resulted in the proposed transaction before the councilors and commissioners. City Council Special Business Meeting Page 1 October 15, 2001 He added that last minute concems from Port Townsend Paper Company were raised and Mr. Timmons has clarified to them that nothing in the agreement would compromise the mill's current water rights. Draft amendments were suggested to the proposed Utility and Exchange Agreement: 1. Add note to Exhibit D (Glen Cove Map): "Property owned by Port Townsend Paper Company in Glen Cove is subject to an existing water lease and Departmet of Health water certificate. Designation of this area as City Water Service Area is provisional." 2. At paragraph 10.0 Operations and Maintenance: Delete last two sentences. First sentence adequately covers legal obligations of entity with respect to facilities received. Clarifying comments: 1. Reference at paragraph 9.0 that "appropriate officials" who can execute documents refers to City Manager or Mayor. 2. Paragraph 12.0 on inter-tie providing that City and PUD will cooperate to establish an inter-tie does not mean that potable water would be provided in any connection. Any inter-tie would conform to DOH rules and regulations. Jim Parker, pUD Manager then made comments, noting this agreement has been a long time coming. He stated the PUD Board feels that this will result in a logical realignment of service areas and that it will give customers in the Tri-Area the ability to elect their own commissioners. He said the PUD considers this a fair exchange of assets. City Attorney John Watts said he had nothing to add, but that he has been working together with the PUD's counsel. Lee Vorhees, municipal bond attorney from Foster Pepper and Shefelman stated he has been serving as special and bond counsel to the PUD. He participated in the preparation of the letter of intent and has reviewed the bond documents and covenants, finding them to be in conformance with the agreements. He will continue to assist the PUD with their bonding. He added that the agreement is typical of this type and he recommended approval of the agreement with the hope of closing the deal on or about November 17. The floor was then open for public comments. Gloria Bram posed questions regarding the draft ordinance and one of the service areas in the exhibit which were answered by Mr. Timmons and Mr. Parker. There was no further public comment. City Council Special Business Meeting Page 2 October 15, 2001 The floor was opened for council and commission discussion. At this time the concems of the Port Townsend Paper Company were discussed in further detail. The effect of the inter-ties was also an area of discussion, particularly whether or not they could be activated in case of emergency. The amount of water available to the city from surface water was clarified, Mr. Timmons noting that the city has the rights on the first five million gallons of which we now use just over one million. Mr. Clow added that full buildout of the city would result in a demand of just over eight million gallons a day; however, if water is taken away from the water right (currently authorized at up to 20 million gallons per day) it would come from the mill's portion of the water. Both stated that the city's potable water supply will not be compromised. The mayor asked for any public comments which would clarify questions raised by the council, commissioners or staff. There were none. At 7:20, Mayor Masci closed public testimony. The gavel was passed to Commissioner McMillen for discussion and action by the PUD Commissioners. Mr. Shipman then moved for approval of signing the purchase and exchange agreement dated October 12, 2001, as amended with the language presented this evening, contemplating the exchange of water systems with passage of PUD Resolution 2001-041 anticipated on Wednesday evening at the regular meeting, and authorizing the PUD Manager to sign for the Board. Mr. McMillen seconded. There was no further discussion and the motion carried with 2 in favor and Mr. King abstaining. The gavel was returned to Mayor Masci. Mr. Finnie moved to suspend council rules and move that the first reading be considered the second and the third be by title only for Ordinance 2777. Mr. Frank seconded. The motion carded unanimously, 6-0, by voice vote. Ms. Kolacy read the ordinance title. Mr. Lipton then moved for approval of Ordinance 2777 incorporating the amendments to the agreement. Mr. Frank seconded. Mr. Garrison and Mr. Finnie commented on emergency cooperation between the city and PUD. City Council Special Business Meeting Page 3 October 15, 2001 Mr. Masci spoke in favor of approval, noting that he is satisfied the agreement is in the best interests of the city and the tri-area, that it is equitable and fair to all parties, particularly the citizens, that due diligence has been achieved, that the method of appraisal is fair, that consolidation of the service areas will produce efficiencies in technical services that will save money for the citizens and that the exchange will allow city government to focus on the immediate needs of the citizens of the city. Mr. Frank commented that this is a major accomplishment that has been long overdue. Vote: The motion carried unanimously, 6-0, by roll call vote. The public hearing was concluded. RECESS Mayor Masci declared a five minute recess at 7:35 p.m. RECONVENE PORT TOWNSEND CITY COUNCIL SPECIAL MEETING At 7:45 pm, the special meeting of the of the City Council was called to order in the Pope Marine Building. ROLL CALL Council members present at Roll Call were Joe Finnie, Allen Frank, Vern Garrison, Geoff Masci, Syd Lipton and Alan Youse. Mr. Wolcott was excused. CHANGES TO THE AGENDA Mr. Garrison requested an executive session regarding a personnel issue. Mr. Watts stated that because this is a special meeting, an executive session may be held, but no action may be taken PRESIDING OFFICER'S REPORT There was no report. CITY MANAGER'S REPORT Mr. Timmons stated that the preliminary budget for 2002 would be filed with the City Clerk on Tuesday, October 16, and would be available in the council members packets for the October 22 workshop when his formal presentation will take place. He stated that he has been working on refinements and changes, particularly interfund transactions. The bottom line is that the budget looks stable with the general fund balance on target, and no surprises are expected such as the ones experienced last year due to the intergovernmental agreements. He will begin scheduling the budget review by council committees in the next month. City Council Special Business Meeting Page 4 October 15, 2001 COMMENTS FROM THE PUBLIC Bill Bradford: detailed his experience with the city while building a shed on the roof of the Pioneer Building, listing dissatisfaction with the permit and HPC process. Mr. Timmons asked Mr. Bradford to make an appointment with him to discuss the issue.. CONSENT AGENDA Mr. Lipton moved for adoption of the following items on the consent agenda. seconded. The motion carried unanimously, 6-0, by voice vote. Mr. Frank Approval of Bills, Claims and Warrants Vouchers 78159 through 78346 in the amount of $659,439.29 Minutes Business Meeting of September 24, 2001 Business Meeting of October 1,2001 Resolution RESOLUTION 01-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, TO AUTHORIZE THE CITY MANAGER TO TAKE ALL NECESSARY STEPS (EXCLUDING CONDEMNATION PROCEEDINGS) TO ACQUIRE THE NECESSARY RIGHTS-OF-WAY OR EASEMENTS TO ACCOMPLISH THE SAN JUAN PATHWAY PROJECT, SUPPLEMENTING AND AMENDING RESOLUTION 01-046 ADOPTED OCTOBER 1, 2001, WHICH RESOLUTION AUTHORIZED THE CITY MANAGER TO AWARD AND SIGN A CONSTRUCTION CONTRACT FOR THE SAN JUAN PATHWAY PROJECT Motion. Authorize the City Manager to fora, md the feasibility report (Gray &Osbome, Inc.) Water System Plan Amendment, Low Pressure Mitigation for Morgan Hill and Jacob Miller/Lands End to the Department of Health and to proceed with the development of the required detailed project report. EXECUTIVE SESSION At 8:05 the council adjourned to Executive session on a personnel matter. Mayor Masci announced that no action would be taken following the session. RECONVENE The meeting was reconvened at 8:30 p:m. City Council Special Business Meeting Page 5 October 15, 2001 ADJOURN There being no further business the meeting was adjourned at 8:31 p.m. Attest Pamela Kolacy, CMC City Clerk City CoUncil Special Business Meeting Page 6 October 15, 2001