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HomeMy WebLinkAbout113006 CITY OF PORT TOWNSEND CITY COUNCIL MINUTES OF THE SPECIAL SESSION OF NOVEMBER 30, 2006 (Rescheduled from November 27, 2006) CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in regular session this thirtieth day of November, 2006, at 6:30 p.m. in the Port Townsend temporary Council Chambers in the Port Townsend Fire Station conference room, Mayor Mark Welch presiding. ROLL CALL Council members present at roll call were Frank Benskin, Geoff Masci, Laurie Medlicott, Catharine Robinson, Michelle Sandoval, and Mark Welch. Scott Walker arrived at 6:43 p.m. Staff members present were City Manager David Timmons, City Attorney John Watts, Finance Director Michael Legarsky, Public Works Director Ken Clow, Planning Director Rick Sepler, DSD Director Leonard Yarberry, Chief of Police Conner Daily, Fire Chief Mike Mingee, and City Clerk Pam Kolacy. CONSENT AGENDA Motion: Ms. Robinson moved for approval of the foJ/owing items of the Consent Agenda. Mrs. Medlicott seconded. The motion carried unanimously, 6-0, by voice vote. Approval of Minutes: November 1,2006; November 16,2006 BUDGET FOR FISCAL YEAR ENDING DECEMBER 31, 2007 City Manager David Timmons reviewed the meeting material, noting that the Council has had several meetings preliminary to the preparation of the ordinances prepared for this meeting. He provided a database from the Association of Washington Cities comparing all use taxes in member cities throughout Washington. The taxes vary dramatically throughout the state and some are specific to the demographic of the community. Finance Director Michael Legarsky provided a packet of material regarding tax distribution among the various taxing entities in 2005 and 2006. It was noted that as reassessments take place throughout the county, the percentages shift from year to year. City Council Special Meeting Page 1 November 30, 2006 Ms. Sandoval stated that citizens often assume that when their property taxes increase through reassessment, the city receives more money; Mr. Timmons confirmed that there is no increase in funding, but existing funds are reapportioned. Mr. Walker arrived at 6:43 pm. Mr. Benskin asked if the $400,000 for streets could be broken out to show the figure for street maintenance. Mr. Timmons said that before implementing, the City would develop a street maintenance plan; depending on the level of detail, this could cost $50-75,000. He added that the total liability for streets is daunting and total repair and maintenance would far exceed the funds allotted; he added that the funds would accumulate in the street fund if work were delayed, but there are ongoing projects that need funding such as matching funds for the sidewalk grants. Mr. Timmons noted that an increase in utility taxes rather than property taxes would target many significant large institutional users like Fort Worden who impact community services. Mrs. Medlicott noted that 48% of the property in the City is tax exempt including the Port, County, Hospital, churches, etc. These entities do not share in the property tax or business tax burden. Ms. Sandoval said she believes this would be a more equitable solution for the citizens so the residential owners do not carry the tax burden. Mr. Benskin asked if there is any relief available for residents who cannot afford the $10 per month increase in utility taxes. Mr. Timmons stated that the Council could adopt a policy that would provide relief for low-income residents. He stated that staff could bring forward a proposal prior to the implementation of the ordinances. Mr. Legarsky noted that the low income and senior assistance program is updated every January and the savings to the people in those categories is passed along to the rest of the taxpayers. The Council may adjust the qualifying income level. In answer to Ms. Robinson's questions, Mr. Timmons stated that, other than the voter approved tax, the ordinances could be implemented at any point in time. He also noted the ordinances could be enacted but the City could delay in levying the increases until the Council gives the go ahead (45 days, for example.) Ms. Robinson asked about the proposed maintenance position. Mr. Timmons replied that this is a recommendation because the better the City is at keeping up on maintenance, the greater the long-term effect on facilities; he stated we are currently behind on maintenance. Mr. Timmons noted that the City has reached the point, which was predicted in 2002 where Council must decide whether programs must be reduced, or whether City Council Special Meeting Page 2 November 30, 2006 supplemental revenue sources must be identified. He added that Port Townsend is not unique in this situation and many other cities are having the same problems. Public Comment There was no public comment. ORDINANCE 2933 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING CHAPTER 5.84 UTILITY BUSINESS TAX, AND SECTION 5.84.030 TAX IMPOSED, AMENDING AND PROVIDING FOR UTILITY TAX RATES FOR THE WATER, SEWER, STORMWATER AND GARBAGE UTILITIES Motion: Mr. Welch moved for first reading of Ordinance 2933. Ms. Sandoval seconded. Mr. Welch stated he would like Council to look at a safety valve for residents who cannot afford an increase. Mr. Timmons stated that the ordinance could be amended to provide for implementation March 1 so that Council could deliberate in January and February on the use of funds and the methods for applying the increases. In answer to Mrs. Medlicott's question, Mr. Timmons stated that the total increase for all utilities combined would be about $10 per month for the average resident. Ms. Robinson noted that people do have the discretion to reduce usage; for example, recycle more and cut down on garbage or use less water for lawns and gardens. She stated that the people have wanted attention to the streets and this will be a mechanism to accomplish that without sacrificing discretionary services such as youth services. Mrs. Medlicott stated she believes that by tapping the 48% of landowners who do not pay property taxes, this will ultimately ease the burden on other citizens. Mr. Welch noted that the results of the rate study may also be to reapportion so the average citizen may not see much increase. Mr. Masci stated the districts would probably pass on the increases to the taxpayers; he does not think it is good to tax our own utilities. Ms. Sandoval stated it would be great to be able to say no to increases; but the domino does not start with the City and if it did, we would have much more discretion over our budget. The facts show that if revenues are not increased, services must be cut and programs sacrificed. City Council Special Meeting Page 3 November 30, 2006 Ms. Robinson stated that the ordinance and spreadsheet need to conform before the final reading of the ordinance. Staff will make adjustments according to tonight's actions. Mr. Walker stated he is in favor of this method over a street utility; however, he is still uncomfortable about allocating money to street maintenance before we have a plan. Vote: motion carried, 5-2, by voice vote, Benskin and Masci opposed. ORDINANCE 2934 AN ORDINANCE AMENDING CHAPTER 13.05 UTILITY RATES AND CHARGES, SECTION 13.05.050 STORMWATER UTILITY RATES OF THE PORT TOWNSEND MUNICIPAL CODE Motion: Mr. Welch moved for first reading of Ordinance 2934. Ms. Sandoval seconded. In answer to Mrs. Medlicott's question about existing language regarding the City's ability to charge a monthly fee for state highway right-of-way, Mr. Legarsky said he was not aware of this but would check into it. Ms. Robinson stated that especially in light of the recent weather activity, more stormwater work will need to be done and the rate has not kept pace with inflation. Mr. Walker questioned whether the stormwater utility rates are fair and whether all impervious surfaces are being counted. It was agreed that equity regarding impervious surfaces (particularly outside the permitting process) would be an In Box issues. Vote: motion carried, 6-1, by voice vote, Masci opposed. RESOLUTION 06-035 A RESOLUTION OF THE CITY OF PORT TOWNSEND, WASHINGTON PROVIDING FOR THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF PORT TOWNSEND AT A SPECIAL ELECTION, FEBRUARY 6,2007 FOR THEIR RATIFICATION OR REJECTION, PROVIDING FOR AUTHORITY TO INCREASE THE UTILITY TAX RATE FROM 6% TO 10% WITH FUNDS FROM THE INCREASE ALLOCATED TO PUBLIC SAFETY, PARKS, CITY FACILITIES, STREETS AND LIBRARY; SETTING FORTH THE BALLOT PROPOSITION; DIRECTING THE CITY CLERK TO CERTIFY TO THE COUNTY AUDITOR A CERTIFIED COpy OF THIS RESOLUTION; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATED THERETO Motion: Mr. Welch moved for approval of Resolution 06-035. Ms. Sandoval seconded. City Council Special Meeting Page 4 November 30, 2006 In answer to Ms. Robinson's question, Mr. Watts stated that cellular phones are included in the resolution. Mr. Masci and Mr. Benskin both supported taking the issue to the voters. Ms. Sandoval expressed concern about getting information out to the public. Mr. Timmons noted the City has limited ability based on the law and cannot advocate for a measure; however, the City can prepare a fact sheet. He added that some citizens have come forward who have indicated they will support the measure and work for passage. City Attorney Watts will provide further information to the Council and staff regarding the law governing this matter. Mr. Benskin asked how much it would cost to have this measure on the ballot; Mr. Legarsky said he did not know but it could be around $14,000 and the budget would be adjusted accordingly. Mr. Walker stated he would rather include part of the public safety allocation in the voter-approved revenue; staff will return with corrections to the spread sheet and resolution. Vote: the motion carried unanimously, 7-0, by voice vote. RECESS Mayor Welch declared a recess at 8:00 p.m. for the purpose of a break. RECONVENE The meeting was reconvened at 8:15 p.m. ORDINANCE 2932 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2007 The Council agreed to address a list of outstanding items related to the 2007 budget which had not yet been resolved. Golf Course Fund Mr. Benskin raised questions about the overhead allocation in this fund and in other funds. Mr. Timmons noted that charging a flat percentage across the board would City Council Special Meeting Page 5 November 30, 2006 necessitate a programmatic system which would require considerable extra bookkeeping and which shifts every year depending on which projects come to the fore; he stated the law of averages does kick in over time as issues come and go. Community Services - YMCA contract Motion: Mr. Welch moved to approve extending the YMCA contract through the end of the year (currently budgeted through May 2007) and add a 3% increase for the remainder of the year not covered by the current contract. Ms. Sandoval seconded. Mr. Masci stated he would like more information about how the level of service has changed during the course of the five-year contract. Ms. Sandoval noted that the CDILU Committee has received complete reports and that every Council member has received the annual report. Ms. Robinson noted that the Y is a private non-profit, not a public organization; she stated she would like the Y to provide more support for itself through donations and the funding opportunities that are available to non-profits. She added that other non- profits have bloomed and taken off over time when dependence on public funding was decreased (Farmer's Market, Boiler Room). She stated she would like to decrease City funding by $20,000 per year so the Y has a target figure to raise more money. Mr. Walker stated he believes the City has an obligation to provide recreational services; he added that the Y should come up with a surcharge for those who use their services but do not contribute as city taxpayers. Mr. Masci supported the concept of gradually diminishing the City's funding support. Ms. Sandoval noted the Metropolitan Park District discussion was derailed and that needs to be addressed again in discussions with Jefferson County. In answer to Mrs. Medlicott's question, Mr. Timmons stated that funding would reduce the reserve balance of the general fund. Ms. Robinson said there is a lot of community desire for a pool and that the City is in a position to do infrastructure while the Y is not; she would rather see resources put toward support of a pool project; she also noted that the County has a recreation program and the area is small to support both programs. Vote: motion carried, 4-3, by voice vote; Masci, Medlicott and Robinson opposed. Motion: Mrs. Medlicott moved to reduce the funding for the Boiler room from $4,000 to $3,000. Ms. Robinson seconded. The motion failed, 1-6, Medlicott in favor. Community Services - Boiler Room City Council Special Meeting Page 6 November 30, 2006 Motion: Mr. Benskin moved to increase the appropriation to the Boiler Room to $5,000 for 2007. Mr. Masci seconded. In answer to Mrs. Medlicott's question, Mr. Timmons noted the extra funding would come from the reserve fund. Vote: motion carried, 5-2, Medlicott and Robinson opposed. Library - FTE level Ms. Sandoval said since raising the issue she has spoken with Library Director Theresa Percy and has a better understanding of the issue. The FTE is included in the proposed voter approval package. Information Services Mr. Welch stated his concern is system integration; he stated that it makes sense to leave a placeholder in the budget for planning services. He added that until a funding source is identified no expenditures could be authorized. Mr. Masci stated that there would be a limited amount of funding which could be raised with a cable utility tax given the limited number of subscribers to the service. Mrs. Medlicott and Ms. Sandoval asked that the issue be addressed early in 2007. Motion: Mr. Welch moved to keep a placeholder in the budget for council information and agenda management. Ms. Sandoval seconded and asked that a decision take place in the first quarter of 2007. Vote: motion carried, 5-2, by voice vote, Benskin and Masci opposed. PTTV Funding Motion: Mr. Benskin moved to reappropriate any excess funding received in 2006 to the 2007 budget, both capital and operations and maintenance. Mr. Masci seconded. The motion carried unanimously, 7-0, by voice vote. Motion: Mr. Welch moved for first reading of Ordinance 2932. Ms. Robinson seconded. Motion carried, 5-2, by voice vote, Benskin and Masci opposed. Mr. Watts stated that staff would clarify Resolution 06-035 by adding "additional" before "revenues" in the second from the bottom line under Section 1. He added that the spread sheet would be amended to transfer 1 FTE for Police Department to the voter authorization column and add $75,000 to the general fund utility tax authorization. Motion: Mr. Walker moved to transfer 1 FTE for Police to the voter authorization column and transfer $75,000 to street capital to be funded by the utility tax. Mrs. Medlicott seconded. The motion carried unanimously, 7-0, by voice vote. City Council Special Meeting Page 7 November 30, 2006 EXECUTIVE SESSION At 9:35 p.m., Mayor Welch stated the Council would conduct an executive session on personnel matters to evaluate complaints and discuss potential litigation. He added that no action would be taken directly after the session. RECONVENE The meeting was reconvened at 10:33 p.m. ADJOURN There being no further business, the meeting was adjourned at 10:35 p.m. Attest: ~cy~~ City Clerk City Council Special Meeting Page 8 November 30, 2006