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HomeMy WebLinkAbout12022004 · CITY OF PORT TOWNSEND CITY COUNCIL MINUTES OF THE SPECIAL SESSION OF DECEMBER 2, 2004 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in special session this second day of December, 2004, at 6:30 p.m. in the Port Townsend temporary Council Chambers at Building 204, Fort Worden State Park, Mayor Catharine Robinson presiding. ROLL CALL Council members present at roll call were Freida Fenn, Kees Kolff, Laurie Medlicott, and Catharine Robinson. Michelle Sandoval arrived at 6:55 p.m. Frank Benskin was excused. Geoff Masci was absent. Staff members present were City Manager David Timmons, City Attorney John Watts, Public Works Director Ken Clow, Finance Director Michael Legarsky, and City Clerk Pam Kolacy. CHANGES TO AGENDA · Ms. Fenn requested that Item VIII be brought forward as the first agenda item. There were no objections. ORDINANCE 2886 AN ORDINANCE OF THE CITY OF PORT TOWNSEND REPEALING ORDINANCE 2781 AND CHAPTER 3.48 OF THE PORT TOWNSEND MUNICIPAL CODE RELATING TO BANKED REAL PROPERTY TAX CAPACITY - VOTER APPROVAL Motion: Ms. Fenn moved to table Ordinance 2886. Mr. Kolff seconded. Mrs. Medlicott asked how long the ordinance would be tabled. Ms. Fenn replied that her intention would be not to address the ordinance this year. Public comment: Jackie Aase: spoke against adoption of the ordinance; suggested cuts to the budget such as Fort Worden parking fees, freeze on hiring, no consultants, reduction of staff salaries, trimming the Library budget, no funding for Farmers Market, sidewalks, or trails. Suggested the City establish a brainstorm reward program for employees. · City Council Special Business Meeting Page 1 December 2, 2004 · Mr. Kolff said he believes there is no need to discuss the ordinance at this time, as he believes we understand the 2005 budget better now that committee deliberations have concluded and the budget is in balance. Mrs. Medlicott stated she would more cheerfully support the motion if the ordinance would disappear permanently. Mr. Timmons replied to Mr. Kolffs comment, stating that the original funding gap is still in existence based on predictions prior to the levy vote; at this time the gap has been addressed by reverting to some other options council did not originally want to pursue and many service levels will not be met as they would have if the levy had passed; however the budget has been brought into balance on the basis of the work of the Council committees. This has been achieved by not meeting certain needs. Vote: motion carried unanimously, 4-0, by voice vote. 2005 BUDGET DELIBERATIONS City Manager David Timmons presented the current status of the 2005 budget after Council committee reviews. He noted that the focus is on the General Fund as there were no recommendations for changes in capital and utility funds. · He added an update that the City received in November a Lodging Tax Fund payment of $104,000 which partly represents a portion of the back payments owed to the City from the state's failure to credit Fort Worden lodging tax dollars to the city. This will increase the LTAC fund revenues significantly, by about $65,000. Mr. Legarsky added that the total received for this period is $88,000 higher than had been estimated, which is attributable to the error in reporting by the Dept. of Revenue. Mrs. Medlicott emphasized that the error was not that of Fort Worden but of the Department of Revenue. Mr. Timmons noted that the Council reserve is the lowest we are comfortable with. Ms. Sandoval arrived at 6:55 p.m. Mr. Timmons stated that the Police Department is revising its schedules to meet peak demands and avoid overtime and overlap. They are also examining services that are being performed by commissioned officers that could be taken on by civilian staff. Results of the analysis will come forward next year. The Arts Commission is developing a fee structure for certain of their activities such as seminars and the artist registry and the monies received will be credited against their appropriation. The income estimate is $1,300. · City Council Special Business Meeting Page 2 December 2, 2004 · The grant writer expense for public safety projects may be offset by contributions from fire districts. Mr. Timmons showed that the Fire Station account is now within $55,000 of balancing. Part ofthe funding comes from REET, which is the money collected when property is sold and must be dedicated to capital expenditures. The $632,000 in funding awarded to the Northwest Maritime Center will be channeled through the city. Mr. Timmons stated the Finance and Budget Committee asked for a report on salaries. He noted that about two thirds ofthe city's employees are covered by collective bargaining agreements. Any move for an across the board pay cut cannot be done since these are subject to binding arbitration. The remaining employees are subject to city policy. Although they are at will employees, fair labor standards apply and there are guidelines for compensation in terms of employment within the public arena. These salaries are considered as property rights that have due process rights attached. No arbitrary decisions regarding salary cuts can be made without potential legal consequences. · In regard to setting salaries, the same process is followed for represented and non- represented employees. Comparable communities are chosen and job descriptions benchmarked against these comparables. The list shows that most Port Townsend employees fall within the low to mid-range for comparable positions. A list of all current contracts was also presented. Mr. Timmons noted the fund balance of $490,000 fits within the Council's goal of5-8%. All contracts list also presented. Mr. Kolff asked when the $25,000 payment to state parks for waiver of parking fees would be discussed specifically. He would like the Council to consider reducing that amount in 2005 by $6,393, which is what was paid in 2004 to complete the funding agreement. He stated it is only fair that other partners in the county and community at large help cover the costs of that agreement. Mrs. Medlicott agreed that this should be discussed but stated she is not comfortable doing it tonight; she would concur with having it on a future agenda. Ms. Sandoval stated she believes the amount should be reduced further as the City has been carrying an inappropriate portion of the load; now that potential partners such as the County and Peninsula College are in line, she would like to shift the burden. She suggested it be put on the agenda as part of the next round of budget discussions. Mr. Timmons stated that this is a separate item as it is a contract obligation. · City Council Special Business Meeting Page 3 December 2, 2004 · Mrs. Medlicott asked if discussion could be delayed until after the first of the year. Mr. Kolffstated the next $10,000 payment is not due until the middle of February. Ms. Sandoval stated she wishes to discuss it during this budget process. Motion: Mr. Kolffmoved to place discussion of payment to Fort Worden for parking fees in 2005 on the December 13 special business meeting agenda. Mrs. Medlicott seconded. The motion carried unanimously, 5-0, by voice vote. ORDINANCE 2882 AN ORDINANCE OF THE CITY OF PORT TOWNSEND ENACTING A MODEL BUSINESS AND OCCUPATION TAX ORDINANCE AS NEW CHAPTER 5.04A TO THE PORT TOWNSEND MUNICIPAL CODE, AND REPEALING EXISTING PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.04 PROVIDING FOR A BUSINESS AND OCCUPATION TAX ORDINANCE 2883 AN ORDINANCE OF THE CITY OF PORT TOWNSEND ADDING A NEW CHAPTER 5.04B ADMINISTRATIVE PROVISIONS, RELATING TO THE MODEL BUSINESS AND OCCUPATION TAX ORDINANCE · Finance Director Michael Legarsky stated that there have been no changes to the ordinance since the last meeting. He also distributed answers to the Council's questions posed at the previous meeting regarding the business and occupation tax issues. Calculations were supplied regarding the change in revenue if the two-tiered system were eliminated and all businesses subject to tax paid at the .20% rate. Mr. Kolff asked what calculations were made in revenue projections for 2005. Mr. Legarsky replied that we used the historical amount. Mr. Legarsky stated that another change in the ordinance is that the appeal process will not be to the City Treasurer (Finance Director) but to the Hearings Examiner. Motion: Ms. Fenn moved to adopt Ordinance 2882 amended to charging all categories at the .20% rate. Mrs. Medlicott seconded. Mr. Kolff asked how this would impact certain businesses in the community; he stated he is nervous about a tax increase when the Council is looking at a balanced budget. Mr. Timmons noted that the increase would be about $60 on gross receipts of $100,000.00 Ms. Fenn stated that she has experience involved in a small business in Port Townsend and that the tax rate is a small amount. She noted that since businesses grossing under $20,000 will not be taxed, that will give a break to startup businesses and the raise seems reasonable from this perspective. · City Council Special Business Meeting Page 4 December 2,2004 - · Mrs. Medlicott stated we have "balanced" the budget by not meeting certain needs so there is still a need to increase revenue and this is a minimal increase to the business owners. She added the Council has no choice but to balance the budget as that is a statutory requirement but we must realistically look at ways to increase revenue. This increase exempts the most critical start-up businesses. Ms. Sandoval stated that even without a tax increase and having a balanced budget, citizens think we can fund all the different categories in the same fashion; however, we must recognize that today's dollars don't go as far as yesterday's dollars so every single funding category is in fact lower in reality than it was last year. The cost of living and services continues to rise and the City feels it just as individuals do. Vote: motion carried, 4-1, by roll call vote, Kolff opposed. Motion: Ms. Fenn moved for adoption of Ordinance 2883. Ms. Sandoval seconded. Motion carried unanimously, 5-0, by roll call vote. RECESS Mayor Robinson called a recess at 8:05 for the purpose of a break. RECONVENE · The meeting was reconvened at 8:20 p.m. Mayor Robinson announced that Deputy Mayor Sandoval would preside over the remainder of the meeting. ORDINANCE 2887 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING THE PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.08, SECTION 5.08.060, FEE/TERM AND SECTION 5.08.180, SAME BUSINESS - MULTIPLE LOCATIONS RELATING TO BUSINESS LICENSE FEES City Attorney Watts reviewed the packet material. He stated that there are two issues addressed by the ordinance, the business license fee and the business license year. The business license year is currently August 31 to July 1. The Finance Director has stated that it would be more efficient to make the business license year the calendar year. Public comment: none · Regarding the business license year, clarifications were made by Mr. Legarsky that since licenses are currently good through July 2005, his recommendation is to pro-rate into the next filing requirement would mean that business licenses purchased in July 2005 would be for the next 18 months until December 31, 2006. City Council Special Business Meeting Page 5 December 2, 2004 . Mrs. Medlicott stated she would like to take action on amending the time period tonight but defer the issue of business license fee changes to the Finance/Budget Committee for further background and study. Motion: Ms. Robinson moved to waive Council rules and adopt Ordinance 2887 without any change to current business license fees. Mr. Kolff seconded. The motion carried unanimously, 5-0, by roll call vote. Motion: Ms. Robinson moved to refer Ordinance 2887 to the Finance/Budget Committee for review of the fee structure on business licenses and to task the Committee to report to the Council prior to July 2005. Mrs. Medlicott seconded. Amendment (friendly): Ms. Fenn requested to add to the Committee assignment consider design of a grace period to encourage people who do not currently have a business license to get one at the current fee if increased fees are recommended. Vote: motion carried unanimously, 5-0, by voice vote. STATE URBAN WILDLIFE CORRIDOR GRANT FOR $185,701 . Mr. Timmons reviewed the packet material, stating that the City has received word that grant funding of$815,701 in the form of an lAC State Urban Wildlife Corridor Grant is now available. The City applied for the funding in 1996. Receipt of the grant will allow the City to cover the cost of past acquisitions and perform additional grant related activity from the stormwater fund. He stated staff is working on a series of deed/trust agreements and has until February to complete all title transfers and final agreements that have to be put in place. Mr. Kolffstated he wished to disclose that he is on the Board of Directors of the Jefferson Land Trust, a partner in this project. He added there is no conflict of interest which arises since he has no potential for personal gain from any of the transactions attendant to the grant. Motion: Ms. Robinson moved to authorize the City Manager to execute documents accepting a state lAC Urban Wildlife Corridor Grant in the amount of$815, 701. Ms. Fenn seconded. The motion carried unanimously, 5-0, by voice vote. Mr. Timmons noted the money received will go back into the stormwater fund balance reserves. GROWTH MANAGEMENT STEERING COMMITTEE (GMSC) - BOCC PROPOSED COMPREHENSIVE PLAN AMENDMENTS . Mr. Watts stated that some Council members have concerns regarding a Board of County Commissioners proposed action to amend the County Comprehensive Plan to provide City Council Special Business Meeting Page 6 December 2,2004 . that the Port Hadlock Chamber of Commerce would submit two names to the BOCC to represent that UGA at the Joint Growth Management Steering Committee. The current JGMSC discussed the matter of potential representation for Irondale/HadlockJPort Ludlow and at that time it was agreed (according to the minutes) that the issue would be discussed again in January. The issue brought forward is not whether representation is appropriate, but it is the process for determining representation that is in question; the BOCC action further appears inconsistent with the GMA collaborative planning process. A draft letter for discussion purposes was included in the packet materials. Ms. Fenn stated she was a representative at the meeting where this was discussed, and that the group came to consensus about the issue of representation; all were in agreement that there would be representation from IrondalelPort Hadlock; however the process of having a Chamber of Commerce submit names rather than an open application process provides a very narrow process and the Committee had planned to discuss further in January. Ms. Robinson stated she is in favor of representation from the Hadlock UGA, Port Ludlow and possibly other; she would like to see a positive sentence in the letter covering the fact that representation is favored but the proposed process is not. . Ms. Sandoval spoke in agreement and stated the crux of the matter is that we are jumping the gun on this in violation of the agreement ofthe JGMSC; the issue is policy, not whether representation is appropriate. Mrs. Medlicott supported a positive statement regarding inclusive representation. Mr. Kolffnoted that the JGMSC minutes are quite clear on intent and the focus of the letter needs to be on appropriate and participatory process. Motion: Mr. Kolff moved to go forward with a positive letter saying the Council is in agreement in concept with the idea of expanding membership on the JGMSC but emphasizing that the specifics of how this representation occurs should be based on the minutes which indicate agreement by the parties. Ms. Fenn seconded. Ms. Sandoval stated that other amendments are proposed to the County Comprehensive Plan which did not go through Planning Commission to the BOCC; they are Board originated additions to the Comp Plan. Ms. Fenn stated that she has read the amendment more carefully and does not believe the change to LPN3.7 does not follow the GMA planning process, as she understands it so she would like the City, in our interest as the Urban Growth Area, to comment on this issue to the BOCC as well. This proposed amendment can encourage more development in rural lands farther from designated UGAs. . City Council Special Business Meeting Page 7 December 2, 2004 · Mr. Kolffspoke in agreement. He asked Mr. Watts ifhe had any opinion on whether one or two letters should be written. Mr. Watts said this could be done either way. Ms. Robinson stated she would prefer two letters; the issues are separate and since the first is fairly simple it may be addressed more easily; the second is more complicated but the City does need to express its concerns even though we don't have sufficient information; however there is a clear connection between this proposed action and the City's ability to deliver services as a UGA. Vote on letter regarding JGMSC membership process: motion carried unanimously, 5-0, by voice vote. Motion: Mr. Kolff moved that the staff and mayor draft a separate letter to the BOCC indicating concerns about the process used to make amendments to the Comp Plan and the fact that there is no evidence they followed the appropriate GMA required procedures and did not allow for public or city input. Ms. Fenn seconded. Ms. Robinson added that the potential impact on the City of Port Townsend as an urban growth area due to this change in County zoning should be addressed specifically. Mrs. Medlicott stated she is comfortable with the first letter but would prefer that this one be put on an agenda for subsequent discussion, as there has been no public notice or information to the Council. · Ms. Sandoval stated that the BOCC is changing the Comp Plan in regard to density without any public process; a hearing is scheduled for Monday and time is of the essence for the City to submit comments on the issue. Amendment: Ms. Fenn moved to add a suggestion to the letter about the County not being consistent in process or goals with GMA planning requirements. Mr. Kolff seconded. Motion to amend carried, 4-1, with Medlicott opposed Vote on motion as amended: motion carried, 3-2, Medlicott and Robinson opposed. Motion: Ms. Robinson moved to incorporate language into the letter which would refer to the potential increased density in the County due to zoning changes and the adverse impact on the City as an urban growth area as well as other potential UGAs. Mr. Kolff seconded. The motion carried, 4-1, Medlicott opposed. · ADJOURN There being no further business, the meeting was adjourned at 8:55 p.m. Attest: Qftn,uß "- CÞ{rf.L.b-.. / Pamela Kolacy, CMC ~ -- - l City Clerk City Council Special Business Meeting Page 8 December 2, 2004