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HomeMy WebLinkAbout111714CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF NOVEMBER 17, 2014 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The Port Townsend City Council met in regular session on November 17, 2014 in the Council Chambers at 540 Water Street. Mayor King called the meeting to order at 6:33 p.m. ROLL CALL Councilmembers present at roll call were Pamela Adams, David King, Kris Nelson, Catharine Robinson, and Deborah Stinson with Robert Gray excused and Michelle Sandoval absent. Staff members present were City Manager David Timmons, City Attorney Steve Gross, Finance Director Nora Mitchell, Public Works Director Ken Clow, and City Clerk Joanna Sanders . CHANGES TO THE AGENDA There were none. COMMENTS FROM THE PUBLIC Public comment Representatives of the Port Townsend High School Swim Team thanked Council for keeping the pool open during their swim season. Steve Oakford urged the City to work with the County on the County sign ordinance to ensure some area consistency. Barbara Lubert representing the Jeffco Aquatic Coalition thanked Council for keeping the pool open and for allowing the variety of users. City staff response City Manager David Timmons reviewed the challenges of keeping the pool open. A temporary boiler is in place and a new boiler and air handling system would soon be installed. City Council Regular Business Meeting November 17, 2014 Page 1 of 8 CONSENT AGENDA Approval of Bills, Claims and Warrants Vouchers 124820 through 124830 and Electronic Funds Transfers in the amount of $247,816.22. Approval of Minutes: October 27 and November 3, 2014 Appointment of Mark Henthorn to the Non -Motorized Transportation Advisory Board (Position 9, Term Expires May 1, 2017) Motion: Deborah Stinson moved to approve the consent agenda as written with a correction to the first paragraph of the November 3 minutes to correct the date of the meeting. Pamela Adams seconded. Vote: motion carried unanimously, 5-0 by voice vote. PUBLIC HEARINGS Public Hearing Ordinance 3121, Adopting the Budget and Capital Improvement Plan for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2015 Mayor King read the rules of procedure for the public hearing. Councilmembers did not have any financial or property interests to disclose. City Manager David Timmons reviewed the budget process and 2015 budget summary. The new format is connected with the general ledger and next year staff would be able to produce reporting formats improving the budget presentation. This budget is consistent with adopted financial policies as well as succession planning and incorporates salary changes associated with the proposed compensation policy. The cost recovery model being implemented is reflective of 2013 (two year lag). He then explained the key impacts by fund. Staff is working on a narrative of each fund to explain the budget. Following public comment, the Council Finance and Budget Committee would discuss the 2015 budget and 2014 supplemental for 2014 again at their meeting this week. Council is scheduled to hold the second reading of the budget on December 1. If needed, Council might choose to hold a budget workshop November 24. Public Comment: Susan Hargleroad (Library Foundation Board member), but not speaking for City Council Regular Business Meeting November 17, 2014 Page 2 of 8 the Board) expressed concern about the Library fund substantial increase to address cost allocation and concern about anomalies of 2013 on which the cost allocation is based. Polly Lyle (Library Foundation Board member, but not speaking for the board) commented and concurred with Susan Hargleroad's statement. She asked for consideration of impacts of cost recovery so staff reduction is not immediately required. Chelcie Liu (Library Foundation Board member, but not speaking for the board), spoke about 2014 versus 2013 figures and the budget impact. He urged gradually implementing the cost recovery. Mr. Timmons noted that cost recovery is based on audited figures. If Staff were to use 2014 figures versus 2013, we would need to make a true up correction. The new director would need to make the decision on to implement this recovery. The public hearing was closed. Discussion ensued about cost recovery. There was interest in whether there were tracking mechanisms to be able to plan for the future. Ms. Mitchell noted that it is the finance department responsibility to manage and forecast as soon as the year is audited. Mr. Timmons noted that employee count and square footage could also shift the forecast model. If the City were to undercharge, it would still need to recognize the full subsidy and show it as a transaction. Several Council members spoke in favor of the cost recovery model. It was noted that increases in revenue would improve the ability to make adjustments. Regarding questions about financial policies and using one time funds for one-time expenses, Ms. Mitchell responded that one time funds were not incorporated into the budget (example permit fees related to hospital construction). If revenues of roughly $110,000 were to come in, Ms. Mitchell said the funds could be used for one-time expenses (police vehicle or software purchases). Mayor King suggested funds could be determined to be appropriate as a one-time expenses associated with cost recovery. Mr. Timmons said this could also be considered restored revenues that were lost. There was also a question about ending fund balances and Staffs confidence in managing fund levels. Ms. Mitchell said revenues were budgeted conservatively. It is the job of her and other department heads to manage anticipated revenue levels. Mr. Timmons gave a brief explanation of financing for capital projects and financing models. Howard Street would be financed through the line of credit to be addressed later in the agenda. He believes the City would go with the City Council Regular Business Meeting November 17, 2014 Page 3 of 8 Public Works Trust Fund Loan for the water projects. A model should be chosen in the first quarter next year. Ms. Mitchell responded to questions about no revenues for the Community Development Block Grant Fund and negative Water Loan fund balance. She agreed to look at these balances more closely and would respond at the Finance and Budget Committee Meeting. Regarding plans for comprehensive plan support, Mr. Timmons explained one FTE from City Administration would be temporarily allocated for Planning Commission support and Comprehensive Planning assistance and there is also a plan to use the Council reserve for $60,000 in contractual services for technical plans and critical areas review. There was also a request to have the Finance and Budget Committee look into how to soften library overhead. There was some discussion of staffing levels shown on page 8 of the budget message. It was suggested that the issue of Library overhead and Staff support for committees be added to the list of unmet needs in the budget message (page 11). Mr. Timmons noted that upcoming capital projects would generate commercial construction revenue. Motion: Kris Nelson moved to approve first reading of Ordinance 3121, Adopting the Budget and Capital Improvement Plan for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2015. Deborah Stinson seconded. Vote: motion carried unanimously, 5-0 by voice vote. Public Hearing Ordinance 3122, Adopting 2014 Supplemental Budget Appropriations and Making Findings and Declaring an Emergency Mayor King read the rules of procedure for the public hearing. Finance Director Nora Mitchell gave the staff presentation highlighting some of the adjustments to the budget to meet current needs. She reviewed funds where expenses would increase (Community Services, Street Vacation, and Street Capital Improvement) and decreases by fund to offset some of the revenue reductions, particularly in the General Fund. She reviewed revenue changes related to the PUD privilege tax and parking lot revenue. Other changes related to including an overhead allocation for capital projects and addressing human resources under cost allocation. All funds had staffing changes and she reviewed other operating expenses and capital expenses. Ms. Mitchell and Mr. Timmons addressed questions. They noted that this supplemental addresses revenues not realized, some new revenues, expense reductions, and a clean up of overhead allocations. The public hearing was closed. City Council Regular Business Meeting November 17, 2014 Page 4 of 8 Motion: Catharine Robinson moved to approve first reading of Ordinance 3122, Adopting 2014 Supplemental Budget Appropriations and Making Findings and Declaring an Emergency. Pamela Adams seconded. Vote: motion carried unanimously, 5-0 by voice vote. UNFINISHED BUSINESS Ordinance 3120 Fixing and Adopting 2015 Property Tax Levies for the General Levy with a Total Increase of One Percent (1.00%) and for the Emergency Medical Services Levy an Increase of Approximately Seven and 4/10 Percent (7.40%) Mr. Timmons noted this is the second reading of the Property Tax Levy Ordinance. He explained the assessed valuation increase for 2015 and contractual obligation with the Fire District through a special EMS levy approved by the voters. Public comment: There was none. Motion. Deborah Stinson moved to approve Ordinance 3120 Fixing and Adopting 2015 Property Tax Levies for the General Levy with a Total Increase of One Percent (1.00%) and for the Emergency Medical Services Levy an Increase of Approximately Seven and 4/10 Percent (7.4091o). Kris Nelson seconded. Vote: motion carried unanimously, 5-0 by voice vote. NEW BUSINESS Ordinance 3123, Establishing a Line of Credit and Providing for the Issuance and Sale of a Limited Tax General Obligation Bond Anticipation Note in the Aggregate Principal Amount of Not to Exceed $1,500,000 to Evidence the Line of Credit to be Used to Finance Capital Improvements to City Facilities; and Fixing the Form, Covenants and Terms of the Note Mr. Timmons reviewed that this ordinance would approve a line of credit to fund capital improvements for emergency repairs at Mountain View. The roof work at that location would be deferred to spring or summer after the ballot measure. This line of credit would either be paid off with the voted bond or be converted to councilmanic debt. The line of credit would then be used for cash flow for the Howard Street Project. Upon completion, it would be closed and paid in full. Ms. Mitchell reviewed the request for proposal process and noted that this ordinance has been reviewed by bond counsel. City Council Regular Business Meeting November 17, 2014 Page 5 of 8 There was no public comment. There was a question about the benefit of waiving council rules. Ms. Mitchell responded that approving the line of credit tonight would allow staff to get funding in place by the first week in December to process energy retrofit payments before the end of the year. Motion: Catharine Robinson moved to approve waiving Council rules and adopting Ordinance 3123, Providing for Interim Financing for $1.5 Million Limited Tax General Obligation Line of Credit. Pamela Adams seconded. Vote: motion carried unanimously, 5-0 by voice vote. Resolution 14-061, Related to Personnel; Adopting a Compensation Plan for Non -Represented Employees, and Adopting a Salary Schedule Mr. Timmons reviewed this matter is tied to Council's Strategic Plan and Council's previous authorization of a compensation study. Staff has worked on a recommendation for a compensation policy framework for non - bargaining employees. The best practice framework was presented to General Services Committee and their recommendation was to bring it forward to Council and to incorporate the findings into the budget. Mr. Timmons reminded that he addresses pay and classification for all employees and Council sets his compensation and benefits. Human Resources Manager Pam Kolacy explained this is the same policy reviewed at Council workshop. Changes recommended by General Services were to make the policy less specific. It was noted that the packet contained the comparative salaries and a corrected salary schedule. There was a question whether Council salaries are comparable. Staff indicated this has been explored previously, but it could be reviewed. There was also interest in revising number 6 of the policy to state "...eligible for an additional incentive increased based on yet to be determined criteria." Staff responded to questions about increases between bargaining and non - bargaining employees. There was a request for a detailed list of the salary increases. Public comment: Patrick Moore commented on citizens struggling in the community and urged Council to vote against this resolution. Mr. Timmons reiterated that the reason behind the policy is to follow best practices and have this framework to explain salaries given. City Council Regular Business Meeting November 17, 2014 Page 6 of 8 Comments from Council were in support for remaining competitive. There was some apprehension about approving a budget with salary increases having recently come out of recession. There were positive comments about leveling bargaining and nonbargaining employees salaries and having a better understanding of where the City is on the pay scale. It was noted that employee turnover is costly. While this policy addresses compensation, it does not address appreciation and recognition that are also important to being a good employer. Motion: Catharine Robinson moved to approve Resolution 14-061, Related to Personnel, Adopting a Compensation Plan for Non -Represented Employees, and Adopting a Salary Schedule. Deborah Stinson seconded. Vote: motion carried unanimously, 5-0 by voice vote. PRESIDING OFFICER'S REPORT Mayor reported on the following: - Complimented City Manager on staff changes that have occurred. - Being called by CBC radio and will be speaking about concerns on emitting radio frequencies on the growlers - He would accept from PT Rotary Club a $7,000 check to the City for Parkside Park CITY MANAGER'S REPORT City Manager reported: - Working with Mt. Townsend Creamery on their proposed expansion - Howard Street feasibility study is beginning and there would be an application for additional CERB funding - Council meeting on Thursday, November 20 regarding the City Manager evaluation - December meeting to address 2014 Comprehensive Plan Amendments - Library Director candidates have decreased by one - Advertisement released for Planning Director. Parks and Facilities Manager and Finance Manager are both starting in two weeks as is a new police officer SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION There was a suggestion to revise the public hearing script to add a statement that the clerk will signal a bell at two minutes and thirty seconds for the three minute comment limit. COMMENTS FROM COUNCIL There were none. City Council Regular Business Meeting November 17, 2014 Page 7 of 8 EXECUTIVE SESSION ADJOURN There being no further business, the meeting adjourned at 9:55 p.m. Attest: �-) L9 L", Joanna Sanders, CMC City Clerk City Council Regular Business Meeting November 17, 2014 Page 8 of 8