Loading...
HomeMy WebLinkAbout100614CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF OCTOBER 6, 2014 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The Port Townsend City Council met in regular session on October 6, 2014 in the Council Chambers at 540 Water Street. Mayor David King called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Pamela Adams, Robert Gray, David King, Kris Nelson, Catharine Robinson, Michelle Sandoval, and Deborah Stinson. Staff members present were City Manager David Timmons, Community Services Director Rick Sepler, Public Works Director Ken Clow, City Engineer David Peterson, City Clerk Joanna Sanders, Finance Director Nora Mitchell, Interim Library Director Bev Shelton, and City Attorney Steve Gross . Ms. Sandoval joined the meeting at 6:36 p.m. CHANGES TO THE AGENDA Mayor King noted that Jefferson Transit board members Mr. Gray and Ms. Robinson would not be recusing themselves from Item C pertaining to scheduling a public hearing related to the modular building in the Jefferson Transit parking lot. SPECIAL PRESENTATIONS Proclamation for Mental Illness Awareness Week Darlene Grunke Sanders accepted the proclamation on behalf of the local chapter of the National Association of Mental Illness. COMMENTS FROM THE PUBLIC Public comment Steve Oakford spoke in support of moving forward with the Mountain View Ballot measure. City Council Business Meeting October 6, 2014 Page 1 of 8 City staff response There was none. CONSENT AGENDA Approval of Bills, Claims and Warrants Vouchers 124312 through 124550 and Electronic Funds Transfers in the amount of $657,598.23. Approval of Minutes: September 15, 2014 Setting a Public Hearing on October 20 for the Surplus of a Commercial Modular Building at Park and Ride Motion. Deborah Stinson moved to approve the consent agenda as written. Kris Nelson seconded. Vote: motion carried unanimously, 7-0 by voice vote. UNFINISHED BUSINESS Ordinance 3113 Providing for the Submission to the Voters of the City at a Special Election to be Held on [November 4, 2014/February 10, 2015], of a Proposition Authorizing the City to Issue its General Obligation Bonds for Improvements to Mountain View Commons and Other City Facilities and to Repay any Interim Financing, In the Principal Amount of No More Than $4,100,000 Payable in Whole or in Part by Annual Property Tax Levies to be Made in Excess of Regular Property Tax Levies, and to Levy those Excess Property Taxes City Manager David Timmons explained the ordinance prepared as a single ballot measure asking for voter approval of a $3,600,000 bond for Mountain View Improvements (Phases 1 and 3). He suggested deferring the decision and discussion to pursue a second measure for the Phase 2 Energy Retrofit and Library capital improvements until a future election. This decision is based on recent information that the School District would be placing a program levy (operations and maintenance) on the February 2015 ballot. Mr. Timmons showed the Mountain View Site Plan in the packet with a hashed line separating the classroom building from the reminder of the property. Everything to the left of the hashed line would be part of the City, school and YMCA collaborative, pending a capital campaign, to redevelop the non -classroom areas into a new community facility. The third attachment is the same financial proforma attached to the companion Resolution 14- 054. It outlines the repayment terms of the bond and shows that the City will City Council Business Meeting October 6, 2014 Page 2 of 8 have $389,414 to service one half of the debt service, with the balance coming from a 15 -year levy not to exceed 13 cents per $1,000 of assessed value. Mr. Timmons then led a review of the cost estimate showing Phase 1 emergency repairs underway and a list of improvements for the total project. The proposal is to reserve $500,000 in escrow for a portion of the repairs (highlighted in yellow). Within the 3 year period, the Collaborative would attempt to complete a campaign to fund redevelopment of those elements. If the project is not underway by year 3, the City would have the funding to make necessary repairs or could continue to defer under terms to be renegotiated at that time. Due to the discovery of asbestos and lead in the roof of the classroom building, repairs to roof have been deferred to the summer of 2015 and are now included as a part of Phase 2. The $500K for the classroom building has now been moved to Phase 3 decreasing the previous project budget of $1.8 million to $1.3 million. The two left columns minus yellow items is all work that would be done to the classroom portion of the hashed line. No other improvements would be done pending success or failure of the YMCA scope of work being pursued. Mr. Timmons explained the process of buying and selling bonds and gave an overview of the proforma prepared by financial advisors. The City would service its debt of $60,000 in rent obligations to the school district and to the Fire District with Prop 1 funds beginning in March 2015. While the voted bond guarantees the debt of the levy to be paid in full, if needed, Council could choose to buy 50% of that debt down from other sources (energy savings and Prop 1 funds to service the 50 percent share of the debt). The resolution later in the agenda would confirm Council's intent to repay the bonds from other sources and keep the property tax levy at 13 cents per $1,000 assessed value. The County assessor believes property value for 2014 would increase by 5% versus 2% as the City estimated. Following a brief report of 2014 revenues, Mr. Timmons noted that an expected growth in assessed value would increase councilmanic debt capacity (from $2 million to $3.2 million beginning of 2015). Mayor King pointed out that an incorrect version of the Ordinance was included in the agenda packet. The proposed motion listed on the agenda bill refers to the correct ordinance text, but he offered Council the option of deferring first reading until October 20. During Council discussion, there were questions about what the impact to the guaranteed energy cost savings would be if the gym and cafeteria roofs and pool pump improvements are not completed. Mr. Timmons clarified that these improvements were not included in the energy retrofit work. The air handlers, boilers, and classroom building roof were included and those repairs would be completed. A delay in roofing the classroom would not impact the energy savings calculations. The City should also know soon about the PUD electrical rebate. City Council Business Meeting October 6, 2014 Page 3 of 8 Regarding whether ownership interests would cause problems in YMCA fundraising, Mr. Timmons said the YMCA may eventually need a lease with the school, but for now the City is the primary leaseholder. He also believes adaptive reuse of the existing facilities may make more sense for the YMCA in order to lower the cost of new construction. Current tenant leases are month to month, but following a broader facilities plan, longer term agreements could be put in place after determining if the current locations are suitable. There was some concern that the City has not determined that Mountain View is the preferred location for the YMCA. Mr. Timmons recognized Council has not discussed the feasibility of Mountain View. He noted the YMCA moved forward with a survey favoring Mountain View and the school district has indicated their interest in keeping the property in public ownership. A memorandum of agreement would be presented to Council and then Council could consider whether to urge the YMCA to do a feasibility study for expansion and renovation of Mountain View as the preferred location. Other questions were about plans for parking facilities (including the possibility for shared facilities with the Golf Course), the legalities of allocating $500,000 to a private, non-profit corporation, and YMCA low- income membership options. A frequently asked questions document and information in the voter guide would be opportunities to get facts out to the public. It was noted that there would be SEPA/planning approval processes associated with any development. Public Comment was as follows: Todd Wexman spoke about his concerns about the ballot measure and further taxation. He urged slowing down the process. Erica Delma, Program Executive Director at Jefferson County Branch of the Olympic Peninsula YMCA commented on what she believes is an incredible opportunity with multiple partners and the challenges of the maintaining this existing facility. She reviewed some of the questions and survey results pertaining to membership, explained the public/private partnership model, and talked about concerns with competing interests with other athletic facilities. She also reviewed the different services that could be offered and the different facility layout options that are flexible to the needs of the community. During final deliberations, there was continued concern about any deferment of ADA improvements at the pool and other Mountain View facilities and concern over elimination of field space and playground structures to accommodate a new facility. Motion: Michelle Sandoval moved to approve first reading of Ordinance 3113 Providing for the Submission to the Voters of the City at a Special Election to be Held on February 10, 2015 of a Proposition Authorizing the City to Issue City Council Business Meeting October 6, 2014 Page 4 of 8 its General Obligation Bonds for Improvements to Mountain View Commons and to Repay any Interim Financing, in the Principal Amount of No More than $3,600, 000 Payable in Whole or in Part by Annual Property Tax Levies to be Made in Excess of Regular Property Tax Levies, and to Levy those Excess Property Taxes. Deborah Stinson seconded. Vote: motion carried unanimously, 7-0 by voice vote. Resolution 14-054 Expressing the City Council's Intentions Regarding Allocation of Source of Revenue for Repaying Debt Related to Mountain View Commons Repairs Mr. Timmons gave the staff report on the resolution that would document Council's intention to pay back the bond associated with the Mountain View Commons repairs with 50 percent from other revenues rather than 100 percent from property tax. He reminded that this resolution does not bind future Councils but is a political decision that would be reviewed every year at the time of budget resolution and levy. There was no public comment. Motion: Michelle Sandoval moved to approve Resolution 14-054 Expressing the City Council's Intentions Regarding Allocation of Source of Revenue for Repaying Debt Related to Mountain View Commons Repairs. Catharine Robinson seconded. Vote: motion carried unanimously, 7-0 by voice vote. Ordinance 3117 Revising Port Townsend Municipal Code Chapter 13.03, System Development Charges for Water and Sewer Connections and Amending the Rates, Clarifying when Charges are Due and Payable Public Works Director Ken Clow reviewed the increases in the water and sewer system development charges (SDC) from the current rates and noted the proposal is to implement a two-tier rate increase. This ordinance increases the water and sewer system development charges (SDC) from the current rates (which went into effect in January 1998) of $2,522 for water and $2,331 for sewer to new rates as recommended by the City's financial consultant FCS Group of $4,494 for water and $3,758 for sewer. The rate increase reflects adjustments for inflation and for the cost of major capital improvements made to the water and sewer systems since 1998 and those capital improvements programmed for construction such as the new water treatment facility, the 5 million gallon reservoir replacement, and the waste water treatment plant outfall replacement. The ordinance also amends the City Code to reflect the current practice of collecting SDCs at the time of application for connection to the City water and sewer system. In order to reduce the impact of the increase on those individuals about to connect to the City utility system and who had anticipated paying SDCs at the current rate, the increase is made in two phases. The first phase, City Council Business Meeting October 6, 2014 Page 5 of 8 effective 15 January 2015, sets the SDC rates at $3508 for water and $3,045 for sewer (one half of the overall increase). The second phase is effective on 1 July 2015 and incorporates the full increase to $4,494 for water and $3,758 for sewer system development charges. There was no public comment. Mr. Clow then responded to Council questions about costs to abandon and then reconnect to the water system and he provided clarification about the proposed language in PTMC 13.03.070, saying it enables the person to defer paying system development charges further into the process. There was further Council comment that the delay in Council acting resulted in the entire community subsidizing the system development charges. There was a suggestion to consider other payment options although there was recognition it would be financially challenging to implement. There were also concerns about citizens facing additional incurred charges for failure to pay their fixed rate water charges. Mr. Clow explained payment plan options and emergency accommodations. Motion: Michelle Sandoval moved to approve first reading of Ordinance 3117 Revising Port Townsend Municipal Code Chapter 13.03, System Development Charges for Water and Sewer Connections and Amending the Rates, Clarifying when Charges are Due and Payable. Deborah Stinson seconded. Vote: motion carried unanimously, 7-0 by voice vote. NEW BUSINESS Resolution 14-053 Revising Resolution 00-058 Concerning Right of Way Procedures, Appraisal Waiver Procedures and Designating Staff Authority Limits in Making Administrative Settlement Offers City Engineer David Peterson gave the staff report, noting the Washington State Department of Transportation (WSDOT) reviewed the City's existing procedures and noted that there have been updates since 2009 on the Waiver of Appraisal Procedures. This resolution is a housekeeping measure to bring the City's procedures current with WSDOT for projects where the City receives state funding. Mr. Peterson responded to questions of clarification about the language printed in the former resolution. When asking about the term, cost to "cure" and whether it means there are defects on the title to the property. City Attorney Steve Gross agreed to provide that information to Council. There was no public comment. City Council Business Meeting October 6, 2014 Page 6 of 8 Motion: Deborah Stinson moved to approve Resolution 14-053 Revising Resolution 09-008, Concerning Right -of -Way Acquisition Procedures, Appraisal Waiver Procedures and Designating Staff Authority Limits in Making Administrative Settlement Offers. Robert Gray seconded. Vote. motion carried unanimously, 7-0 by voice vote. PRESIDING OFFICER'S REPORT Motion: Catharine Robinson moved to approve Staff preparing a letter of support for the Mayor's signature for continued funding of the Washington State ferry system. Michelle Sandoval seconded. Vote. motion carried unanimously, 7-0 by voice vote. Library Work Plan Mayor King noted the packet contained Library Advisory Board work plan recommendations from the Interim Library Director. Mr. Timmons also reported on Staffs work on setting up a review panel to review Library Director applications. Interim Library Director, Bev Shelton spoke to the need for having an approved work plan for the Board, so the Advisory Board can continue its work once the new library director is hired. Public comment: There was none. Motion. Deborah Stinson moved to approve a Library Advisory Board work plan to review policies and procedures for use of the library's collections and spaces and work with City staff to determine the scope and process for strategic planning for the Library following appointment of a new Library Director. Robert Gray seconded. Vote: motion carried unanimously, 7-0 by voice vote. Letter of Support Household Goods Moving Law Mr. King reported that the agenda packet contained his letter on the Regulation of Household Goods Carriers that has been sent to legislators. CITY MANAGER'S REPORT Update on United States Department of Agriculture (USDA) Rural Development Grant and Low -Interest Loan to Fund Critical Drinking Water Facilities Mr. Timmons reported on the following: - Receipt of USDA $11 million loan and companion $3 million grant for Water Treatment. City Council Business Meeting October 6, 2014 Page 7 of 8 - Reconciliation of 2014 and question about policies and procedures for how we collect fees - Transitioning from an Excel budget model into a Springbrook budget for 2015. - Preparing testing for close to 20 police officer applicants. Currently, there are three openings - The Parks and Facilities Manager position is on hold - Mr. Clow reported the City is currently drawing water from Lords Lake, but is still able to draw water from the Big Quilcene river. SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION None None COMMENTS FROM COUNCIL EXECUTIVE SESSION ADJOURN There being no further business, the meeting adjourned at 8:48 p.m. Attest: ® alvs-Y-K ' Joanna Sanders, CMC City Clerk City Council Business Meeting October 6, 2014 Page 8 of 8