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HomeMy WebLinkAbout040912 CITY OF PORT TOWNSEND MINUTES OF THE WORKSHOP OF APRIL 9, 2012 CALL TO ORDER The City Council of the City of Port Townsend met in workshop session at 6:30 p.m. on the ninth day of April, 2012, in City Council Chambers, Mayor David King presiding. ROLL CALL Councilmembers present at roll call were Robert Gray, David King, Kris Nelson, Michelle Sandoval, Deborah Stinson, and Mark Welch with Catharine Robinson excused. Staff members present were City Manager David Timmons, City Attorney John Watts, Finance Director Michael Legarsky, Police Chief Conner Daily, Public Services Director Rick Sepler, Public Works Director Ken Clow, and City Clerk Pam Kolacy. FINANCE ISSUES: FIRST QUARTER 2012 REVIEW RESOLUTION 11-043 Review policy for budgeting for repair and maintenance accounts. Mayor King noted that the Council would hold an executive session at the end of the workshop to discuss personnel issues and potential litigation. City Manager David Timmons reviewed the policy for budgeting for repair and maintenance accounts. He recommended that the repairs and maintenance accounts be separated into two categories, one for scheduled repairs and maintenance and one for unscheduled activities. The unscheduled activity allocations would be based on an average established by reviewing the available history. Occasional unexpected large repair items could be dealt with by line item transfer or supplemental appropriation. During discussion it was noted that funds could be held in separate accounts each year or designated as a subset of a contingency reserve. A catalog of buildings and deferred maintenance needs should be developed to assist in planning for these expenditures. Some departments such as Finance and Clerk, have large maintenance accounts because of the need for annual maintenance of software systems. Review detailed line item budget for lodging tax. Mr. Timmons provided an overview of the Lodging Tax Advisory Committee budget. He said that marketing and services are allocated into one professional services account and that the Committee reviews the breakdown of these costs at City Council Workshop Meeting April 9, 2012 Page 1 of 4 each regular meeting. He stated that a copy of the current year's workplan has been provided and that expenditures are tied to the workplan and monitored. He noted that the McCurdy Pavilion debt has been paid off so the LTAC fund no longer has to budget for that debt service. It was suggested that this information regarding LTAC expenditures be shared with the Parks Service so that they understand the proposal to use lodging taxes collected at Fort Worden for maintenance would have a negative impact on the Fort through loss of the funds currently used to promote tourism and visitors. Review training budget as it relates to community priorities for Police Dept. Mr. Timmons noted that Chief Daily and Sergeant Surber are present. Mr. Timmons stated that costs for training that have traditionally been underwritten by the state are now the responsibility of the City. Staff is looking at creative ways to fund training. Chief Daily elaborated on the challenges the department is facing due to the state budget cuts. He noted that the officers are still getting the minimum training requirements each year and the department has met all state WAC requirements. There was further Council discussion. Review and recommend rental and expense allocation issues with Mountain View tenants. Mr. Timmons noted this item will be discussed at a future meeting. He noted that some of the information will be contingent on the Honeywell assessment and the overall energy plan for the building. An agreement with the school district is critical. Review capital financing options for the current capital projects for the water/sewer/stormwater utilities. Mr. Timmons discussed the City's Capital Plan and noted that funding the plan will be a significant challenge as the City moves forward. He said that a rate impact analysis regarding the Long Term Treatment project shows a huge impact on rates if the cost of the project is amortized into the rate base. This is an example of the need for the City to find creative alternatives to finance required and necessary capital investments. He recommends that the City retain a financial consultant to assemble a long term rate and capital funding model for the Capital Improvement Plan. In addition, policy guidelines must be in place to help establish project priorities. During Council discussion it was noted that the 2013 budget process would begin in July. The desirability of preparing a multi-year strategic budget was confirmed. City Council Workshop Meeting April 9, 2012 Page 2 of 4 Review and adopt method for reporting status and budget issues for capital projects. Mr. Timmons said that staff has been developing and following up on reporting tools. Some examples are in the packet materials. During Council discussion, Mr. Timmons added that he anticipates that the first standardized report to the public on financial issues will be included in the June newsletter. YMCA and Regional Park and Recreation Programs. Mr. Timmons reviewed the YMCA contract and stated that the Exploratory Regional Parks and Recreation Committee analysis of funding and administrative options is in the packet materials. CHANGED FINANCIAL CONDITIONS 2012 Mr. Timmons summarized the changed financial conditions for the first quarter, including loss of personnel, funding for Main Street through the Utility Tax credit, transition funding for the YWCA, agreements regarding the Fire District and Animal Services, and the General Obligation debt refinancing. Mr. Timmons asked City Engineer Dave Peterson and consultant Scott Sawyer to update the Council on the Taylor Street project. They provided a review and noted that the project is probably 3-4 weeks behind and will be within budget but that will probably include a portion of the contingency funds. They stated that the undergrounding of utilities is complicated and the hookups for each individual business are time consuming and complicated. During Council discussion, it was suggested that photographs be taken for historic perspective, that Main Street continue to help update the project for businesses, and that updates on specifics to the Council continue. SCHEDULE FOLLOW-UP ACTIONS Follow up actions to refer repair and maintenance budgeting to the Finance and Budget Committee and retaining a financial consultant will be scheduled for the next regular business meeting. EXECUTIVE SESSION - PERSONNEL Mayor King stated that after a break at 8:44 p.m., the Council would hold an executive session regarding collective bargaining and potential litigation. He said the session would last no more than fifteen minutes and no action would be taken following the session. City Council Workshop Meeting April 9, 2012 Page 3 of 4 The meeting was reconvened at 9:10 p.m. ADJOURN There being no further business, the meeting was adjourned at 9:16 p.m. Attest: Pamela Kolacy, MMC City Clerk City Council Workshop Meeting April 9, 2012 Page 4 of 4