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HomeMy WebLinkAbout091911 CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF SEPTEMBER 19, 2011 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in regular session the nineteenth day of September 2011, at 6:30 p.m. in the Council Chambers, Mayor Michelle Sandoval presiding. ROLL CALL Councilmembers present at roll call were David King, Laurie Medlicott, Kris Nelson, George Randels, Catharine Robinson, Michelle Sandoval, and Mark Welch. Staff members present were City Attorney John Watts, Development Services Department Director Rick Sepler, City Engineer Dave Peterson, and City Clerk Pam Kolacy. CHANGES TO THE AGENDA At the request of Cou'ncilmember King, the City Council agreed to move "Consent Agenda" item C - "Authorization for the City Manager to award contract for demolition and shoreline work associated with the waterfront esplanade project" and place it under "Old Business" for discussion. SPECIAL PRESENTATION: Presentation of Volunteer of the Year The 2011 Volunteer of the Year Award was presented to Cameron McPherson acknowledging her community volunteer efforts and contributions to Habitat for Humanity, the Library Foundation Board and the George Welsh Guild. Jefferson County Public Health Update Jefferson County Public Health Director Jean Baldwin and Mike Dawson with the Clean Water District were present to give a public health update. Mr. Dawson stated that in 2007 the Jefferson County Board of Commissioners established a Clean Water District to improve water quality and protect shellfish resources from pollution in east Jefferson County's streams, rivers, bays and coastal areas. The district includes all of eastern Jefferson County from the Olympic Mountains to Port Townsend. To fulfill the purposes and goals of the Clean Water District as required by County Code, the Jefferson County Board of Commissioners adopted a resolution in August creating the Clean Water District Advisory Board. The Board will convene this fall to discuss important water quality issues and develop a water quality improvement plan. In order to insure the Board represents a wide variety of interests, the City City Council Business Meeting September 19, 2011 Page 1 of 9 Council and other local groups and agencies are being invited to participate by having a representative on the Board which will consist of 9 positions and will meet quarterly. Ms. Baldwin reviewed the documentation provided which highlights health indicators in the following areas:, 1) Demographics Population, Education, Employment, Income, Poverty, Household Composition and Marital Status/Housing; 2) Mental Health, Alcohol and Drug Use; and 3) Health Care Access; Births, Quality of Life and Deaths. She stated that this information is continually updated and can be found on the Jefferson County Public Health website at www.neffersoncountypublichealth.org. On a separate matter, a letter regarding solid waste was submitted by Ms. Baldwin. She explained that in 2005 the Board of Health adopted a solid waste ordinance and at that time it was decided by the Board that the County would not be responsible for solid waste enforcement within the City because the City has its own solid waste regulations and adopted codes. Jefferson County Public Health has recently received a number of calls from City residents reporting problems with vehicles and other nuisances which can cause health issues. While the City and County each have code enforcement regulations dealing with these issues, the two agencies have different methods of addressing them. Jefferson County Public Health does not enforce the City's code. The issue of aligning the City and County codes to deal with this issue may need to be discussed in the future. COMMENTS FROM THE PUBLIC Public comment Candace Cosler commended the City for moving forward with the Mountain View property acquisition which provides security for the local food bank, vocational training and job re-training opportunities. It is a very exciting potential project for many organizations and businesses in our area. After traveling the country this past year she found that the most successful projects were those that involved a partnership between Cities, PUDs, organizations and land trusts. This can be explored in our community as well. She presented information on a community land trust national conference being held in October and stated that she hopes someone from our community can attend. Regarding the Jefferson County Farm to School Coalition, she reported that they were successful in getting grant funding for a training that will be taking place on the peninsula to help local food service directors learn to prepare school meals using local foods. City staff response There was no response from City staff. CONSENT AGENDA Approval of Bills, Claims and Warrants City Council Business Meeting September 19, 2011 Page 2 of 9 Vouchers 115644 through 115652 in the amount of $929.87 Voucher 115653 in the amount of $4,834.00 Vouchers 115654 through 115773 in the amount of $242,859.80 Approval of Minutes: September 6, 2011 Motion: Catharine Robinson moved to approve adoption of the consent agenda. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. OLD BUSINESS Contract Approval with Homeward Bound for Discovery Road Property for Affordable Housing Project City Attorney John Watts reviewed the packet materials which include the "Terms of Transaction for Discovery Way Lot," three letters from Homeward Bound dated April 11, May 13, and June 15, 2011, and a "Memorandum of Understanding between Homeward Bound and Habitat for Humanity of East Jefferson County." He explained that the City Council is being requested to authorize the City Manager to enter into a Letter of Understanding with Homeward Bound which is a Community Land Trust based in Port Angeles. The Letter of Understanding will allow Homeward Bound to complete their due diligence with regard to a feasibility study for an affordable housing project on property currently owned by the City and located adjacent to Discovery Road. If the project is determined feasible, then the ultimate action by the City would be to transfer the property to Homeward Bound according to terms of an agreement as outlined in the documents provided. Previously, the City Council agreed to move forward with a transaction with Homeward Bound, subject to documents assuring that the property would remain in affordable status. There are four key terms which address the perpetual affordability issue: 1) the City deeds the property to Homeward Bound and Homeward Bound gives back a deed of trust to guarantee that the property will remain in affordable status. If Homeward Bound breaches this obligation, the City can foreclose and take back the property; 2) the documents are modeled on Community Land Trust documents that are used by the City of Seattle which are very complete; 3) the documents will state that no loan on the property can exceed a "loan-to-value" ratio of 80%; and 4) The City deed to Homeward Bound would contain a reversionary clause, providing that if the property does not remain in affordable status then the title to the property reverts to the City. Past actions of the City Council have furthered affordable housing in Port Townsend. It is recommended that the City Council authorize the City Manager to enter into a Letter of Understanding with Homeward Bound based on the outlined terms. City Council Business Meeting September 19, 2011 Page 3 of 9 Catherine Mich, Homeward Bound Board President stated that the summary provided by Mr. Watts is accurate and they are eager to move forward. After the Councilmembers noted minor corrections and received answers to clarifying questions, Mr. Watts explained that this is a partnership transaction between Homeward Bound and Habitat for Humanity. Homeward Bound would develop the site and work with Habitat for Humanity to locate a qualified buyer who would enter into a long term lease with Homeward Bound. Habitat for Humanity would then work with the buyer to build a house. Melinda Szatlocky, Homeward Bound Program Director, commented that the loan value of 80% was used in this document because that is the standard amount required by most banks in order to avoid paying for private mortgage insurance. With regard to the foreclosure issue, it needs to be clear that if Homeward Bound were to have a house on the land with a mortgage from a bank and the house went into foreclosure and the bank sold the house, Homeward Bound would still own the land. The lease would survive foreclosure. In fact, the National Land Trust reported that Community Land Trust mortgages are good for banks because the foreclosure rate was less than one half of one percent in 2010 which was down from the previous year and considerably lower than the local trend. The City Council agreed that this a precedent setting transaction that is worth the effort spent. It will be a model that can be used for larger projects and by other communities. No public comments were received. Motion: George Randels moved to authorize the City Manager to enter into a Letter of Understanding with Homeward Bound pursuant to its April 11, 2011 letter and the additional terms outlined in this Agenda Bill. David King seconded. Vote: motion carried unanimously, 7-0 by voice vote. Ordinance 3063 to Rename and Revise the Purposes of the Port Townsend Public Development Authority and Approving an Amended and Restated Charter City Attorney John Watts reported that the City Council approved first reading of Ordinance 3063 on September 12, 2011. Specifically, this ordinance renames and revises the purpose of the Public Development Authority (PDA) and approves an amended and restated charter to focus on implementing a lifelong learning center at Fort Worden. The name will be changed from the "City of Port Townsend Public Development Authority" to the "Fort Worden Lifelong Learning Center Public Development Authority." The Public Development Authority will work with Fort Worden, Washington State Parks, Peninsula Community College and other entities currently existing at Fort Worden, as well as potential new partners to help facilitate this plan. Initially, the work will focus on the restoration, refurbishing and rehabilitation of building 202 which has received funding support from Washington State Parks and Peninsula Community College. The recommended action is for the City Council to City Council Business Meeting September 19, 2011 Page 4 of 9 approve this Ordinance. No public comments were received. After the Councilmembers noted minor corrections and received answers to clarifying questions, Councilmember Medlicott expressed her strong support of this ordinance. As requested by Councilmember Nelson, Development Services Department Director Rick Sepler provided an update on the development of a public/private partnership for the Customs house. He explained that the project was not feasible because the rent could not cover the debt service for acquiring the building. However, there are new opportunities for leasing the building that now make the project fiscally viable which may appeal to a private sector developer to partner for a public purpose. Motion: George Randels moved to approve Ordinance 3063, with minor amendments discussed tonight, amending Ordinance 3018 to rename and to revise the purposes of the public corporation currently known as the City of Port Townsend Public Development Authority, and approving an amended and restated charter. Mark Welch seconded. Vote: motion carried unanimously, 7-0 by voice vote. Authorization for the City Manager to award contract for Demolition and Shoreline Work associated with the Waterfront Esplanade Project City Engineer Dave Peterson explained that this project involves demolition and filling of the tidal clock and reinforcement of the seawall in that location. This work must be completed by February 15, 2012, which is why the project is taking place in the fall. A bid was received from a contractor for the amount of approximately $175,000 plus tax. The engineer's estimate was between $150,000 - $200,000. The final phase of the project will begin in the spring of 2012 and will include completion of the esplanade improvements of the waterfront area. These projects were funded by the 2008 bond. Councilmember King stated that originally this had been a single project and later was split into separate projects. He noted that some projects are right on target with the budgeted amount while others are significantly over budget. He asked how the combined budgets are tracking, in terms of overruns, contingencies and carryovers? Mr. Peterson replied that he recently reviewed the project budgets with City Manager David Timmons. Many downtown work projects were funded by the bond. A few projects such as the Cotton Building were over budget, however, the esplanade project is right on budget. The engineer's estimate is $350,000 for the work to be completed in the spring and that amount is in the bond to cover these projects. To address budget overruns, other planned projects will not be funded by that bond. Staff is working to complete a report that will accurately detail the funding of the capital projects. The waterfront esplanade project was delayed waiting for permit approval from the Corps of Engineers. When the project was put out to bid it was anticipated that it would begin October 1 and be completed by November in order to avoid any inclement weather. Seton Construction, a local construction company, was the lowest bidder and was awarded the contract. They will begin the project in mid-October. City Council Business Meeting September 19, 2011 Page 5 of 9 In answer to a question posed by Councilmember Nelson regarding the exact amount the Council is being asked to approve, Mr. Peterson explained that the council is being asked to authorize budget approval of up to $200,000. The bid amount including tax is $195,000. Councilmember Medlicott asked if the funding for this project can be allocated for other purposes? Mr. Peterson explained that the funding is budgeted for this project. Development Services Department Director Rick Sepler explained that funding for this project was part of the 2008 bond previously approved by the City Council. He noted that several contingent funding sources were predicated on this work being done as part of an integrated process. The City is obligated to do this work to be in compliance with other grants that were received. Councilmember Robinson and Randels commented on the fact that all but one of the bid responses received were over $200,000. Staff was questioned about whether there is concern that enough funding has been budgeted for this project? Mr. Peterson replied that typically bids are closer in range to each other, however, this project consists of moving and disposing of quite a bit of material which lends an advantage to local contractors who have a place to dispose of material as opposed to a contractor from out of town who has to haul away the material. Seton Construction's bid was within the engineer's estimate and staff is comfortable that the project will remain within the budgeted amount. Mayor Sandoval asked about Quincy Street dock and how the foreclosure of property in that area might affect this project? City Attorney John Watts replied that the City has started a process to follow up on that subject since it is unclear what position the bank holds. Mr. Sepler added that the property owner, who is in foreclosure, currently has an application on file with the City to rebuild the dock for moorage facilities. Once staff determines whether or not the application will be pursued, withdrawn or terminated for lack of activity, then the City would deal with the Port, as the underlying land owner, to remedy the existing hazardous condition of the dock. It was noted that the project will stop at Quincy Street and does not include the shoreline area at Quincy Street dock. No public comments were received. Motion: David King"moved to authorize the City Manager to award a contract for demolition and shoreline work associated with the Waterfront Esplanade Project. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. NEW BUSINESS Authorization Court and Jail Contract Mr. Watts explained that contracts for court and jail services provided to the City by the County were recently renegotiated separately with Jefferson County District Court City Council Business Meeting September 19, 2011 Page 6 of 9 Judge Jill Landes and Jefferson County Sheriff Tony Hernandez. The negotiations resulted in two separate proposed contracts, each with three year term lengths (2012- 2014). The terms of the jail contract provide for a flat rate of approximately $163,000 per year based on a three-year average of County charges for jail costs, plus a 10% County overhead figure. The $163,000 is the same flat rate as was negotiated for 2011 and was calculated on average figures between 2007 and 2009, and does not include 2010 costs which were unusually high. The flat rate provides predictability for budget purposes to both the City and the County. The contract will increase by 2.5% per year for 2013 and 2014. Additionally, the City will be responsible for the medical costs, transporting and guarding of City inmates. The court contract is based upon a model used by Clallam County with the cities of Sequim and Port Angeles. Like those cities, the City of Port Townsend will pay a percentage of the court costs based on the number of City cases. The percentage would be applied against the direct court costs of the County and would not include "soft costs" such as overhead or facilities charges. The projected budget for court services for 2012 is approximately $139,000 which is down from $154,000 that was negotiated in 2011 and down from $199,000 negotiated in 2010. The recommended action is for the City Council to authorize the City Manager to execute the contracts for court and jail services. Councilmember Randels commented on the City initiating processes that could reduce jail and court costs through prefiling diversion agreements. He asked how the City will realize savings, if the City pays a flat rate for the services outlined in these contracts? Perhaps the City should establish some kind of incentive process in next year's contract that could reduce jail costs which would be helpful to the City and perhaps also to the County. .As it stands now, the City has given away its own incentive. Mr. Watts replied that savings would not be realized for the jail services, however, there could be savings in medical costs. The City could also realize savings in court services as a result of fewer court filings which, in turn, would reduce the City's percentage of the costs. The term lengths of the proposed contracts are for three years. When they expire there will be an opportunity, for a limited time, for the City to consider establising its own court. Councilmember Robinson noted that the jail contract includes overhead costs plus a built-in increase of 2.5% per year for 2013 and 2014, but she did not notice the same language in the court contract. Mr. Watts replied that the court contract does not include overhead costs. The formula used in the court contract is based on the County's direct costs for operating the court and there is no automatic increase. If the County's costs increase, then the increase would be reflected in the budget of which the City pays a percentage. Mr. Watts added that these contracts were negotiated without having to go to arbitration. The City Manager received an email last week from the County Administrator stating that he supports the Board of County Commissioners' approval of both contracts and they are scheduled for consideration during their next meeting City Council Business Meeting September 19, 2011 Page 7 of 9 on September 26, 2011. Councilmember Nelson asked about the need to clarify the language relating to the costs of transporting and guarding City inmates? She questioned if the City is currently paying for these costs or if there are issues btween the City and County that require language clarification? Mr. Watts explained that the City has not been paying these costs. The Sheriff asserts that if the County has to call in a deputy on overtime to guard a City inmate at the hospital, then the City should pay those costs. The City previously rejected a number of invoices received from the County for such costs. This contract clarifies that the County Sheriff will be responsible for 10 hours per month of guard and transport time of City inmates. After 10 hours the City will be charged for the Sheriff's actual cost for service. There is no estimate of the cost increase because it is very difficult to predict how often the service would be needed. It is also tied to the efforts to try to manage medical costs by seeking Judge- ordered furloughs for inmates facing medical costs so it would no longer be a City responsibility. Councilmember King commented that these issues have been discussed by the Finance Committee on numerous occasions. These agreements are the realization of the City Manager's general desire and direction and include opportunities to keep costs down. Medical furloughs and establishing sentencing guidelines so time is minimized in the jail could provide significant cost savings. Councilmember Welch asked what portion of the court services is generated by the City? Mr. Watts reported that the City's filing is approximately 15% of the total cases. No public comments were received. Motion: George Randels moved to authorize the City Manager to execute agreements for court and jail services consistent with the agenda bill. Mark Welch seconded. Vote: motion carried unanimously, 7-0 by voice vote. PRESIDING OFFICER REPORT No report was given. CITY MANAGER REPORT City Manager David Timmons was not present to give a report. SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION None. COMMENTS FROM COUNCIL Committee Reports City Council Business Meeting September 19, 2011 Page 8 of 9 Councilmember Welch reported on the PEG Access Coordinating Committee. Councilmember Robinson reported on the 1/1 0th of 1% Sales Tax Oversight Advisory Committee. Mayor Sandoval reported on the Public Infrastructure Fund (PIF) Board. EXECUTIVE SESSION None. ADJOURN The meeting was adjourned at 8:17 p.m. Attest: Pamela Kolacy, MMC ` City Clerk City Council Business Meeting September 19, 2011 Page 9 of 9