HomeMy WebLinkAbout101617CITY OF PORT TOWNSEND
MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF OCTOBER 16, 2017
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
The Port Townsend City Council met in special session on the 16th day of October
2017 in Council Chambers at 540 Water Street. Mayor Deborah Stinson called the
meeting to order at 6:30 p.m.
ROLL CALL
Councilmembers present at roll call were Pamela Adams, Robert Gray, David Faber,
Amy Howard, and Deborah Stinson with Catharine Robinson, and Michelle Sandoval
excused.
Staff members present were City Manager David Timmons, City Attorney Steve
Gross, Finance and Administrative Services Director Nora Mitchell, Finance Manager
Sheila Danielson, Police Chief Michael Evans, and City Clerk Joanna Sanders.
CHANGES TO THE AGENDA
There were none.
SPECIAL PRESENTATIONS
Arbor Day Proclamation
Debbie Jahnke, Member of the Parks, Recreation and Tree Advisory Board
(PRTAB) accepted the proclamation and spoke about the renewal of Tree City USA
designation, Admiralty Audubon's tree planting event in and near the Decatur Street
right of way on October 22, and the PRTAB's lack of involvement in tree selection
related to the 100 trees planted at Upper Sims/Howard. She urged having more
parks maintenance staff and adding a volunteer coordinator position.
COMMENTS FROM THE PUBLIC
Public comment
Joey Pipia spoke about smart meters and invited Councilmembers to attend an
upcoming movie event.
Susan Wayo, Steve Raab, Ann Raab, Tammi Swanson, Neil Nelson spoke about Ann
Raab's Green Pod business and one of her properties with an accessory dwelling unit
that is out of compliance with Ordinance 3172.
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Doug Milholland distributed a handout and spoke about his concerns about
electromagnetic radiation.
Jim Todd urged recognizing Indigenous Peoples Day on October 16.
City staff response
City Manager David Timmons suggested Indigenous Peoples Day might be
addressed through the InBox process. He explained that the City did not move
forward with smart meters for water metering, however, he would want Council
direction to engage with the Public Utility District about their use of that equipment. He
gave background on the discussion around ADUs related to regulations on transient
accommodations and vacation rentals. This matter was previously discussed at
length and the regulations upheld. There was Council consensus to add the issue of
renting out an ADU and main residence to the Ad Hoc Committee on Housing.
CONSENT AGENDA
Approval of Bills, Claims and Warrants
Vouchers 158041 through 158155, Voucher 555 and Electronic Fund Transfers in
the amount of $920,813.26.
Approval of Minutes: September 18 and October 2, 2017
Resolution 17-048 Providing Continued Support of the Employee Wellness
Program
Appointment of Richard Knight (Position 3, Term Expires December 31, 2023)
to the Civil Service Commission
Motion: Robert Gray moved to approve the consent agenda as written with the
removal of Item D to New Business, Item C. Pamela Adams seconded.
Vote. motion carried unanimously, 5-0 by voice vote.
UNFINISHED BUSINESS — NONE
NEW BUSINESS
Ordinance 3184 Related to Business Licensing and Taxation; Amending
Business Licensing and Regulations, Adding Exemptions to Filing and Paying
Business and Occupation Taxes, and Amending Chapters 5.04A, 5.04B, and
5.08 of the Port Townsend Municipal Code
Finance Manager Sheila Danielson gave the staff report on the recommended
changes to create a more business -friendly tax and license structure. The goals are
City Council Business Meeting October 16, 2017 Page 2 of 5
to gain efficiencies in administrating B&O taxes and licenses and adopt policies and
code changes that are revenue neutral. She noted there was some public concern
about fees for businesses grossing more than $100,000 and noted that other
options for structuring the fees were listed in the staff proposal. The City could also
absorb the loss in tax revenue by retaining the current structure.
Staff responded to clarifying questions from Council explaining that this only
impacts City B&O tax. Businesses would still be subject to state license fees and
deductions are consistent with state B&O tax deductions. First time businesses
under this non -reporting threshold would still complete their license application and
pay their license fee of $25 and estimate their first year revenues.
Public Comment:
Kris Nelson, business owner and president of Main Street, spoke in support of a
more balanced three-tier system that does not shift the burden to the biggest
businesses.
Discussion ensued about the fee structure options. While there was some desire to
absorb the costs of administering the fees and not approve any changes at this
time, there was also interest in proceeding with a three -tiered structure. Council
wanted additional time to consider the listed options as well as receive additional
feedback from the Economic Development Council, Chamber, and Main Street
members.
Motion. David Faber moved to approve first reading of Ordinance 3184 Related to
Business Licensing and Taxation; Amending Business Licensing and Regulations,
Adding Exemptions to Filing and Paying Business and Occupation Taxes, and
Amending Chapters 5.04A, 5.04B, and 5.08 of the Port Townsend Municipal Code.
Pamela Adams seconded.
Vote: motion carried unanimously, 5-0 by voice vote.
Ordinance 3185 Extending the Cable Television Franchise Held by
WaveDivision I, LLC
City Attorney Steve Gross explained this franchise extension pending staffs review
of potential code revisions to right of way procedures and future negotiation of
the master franchise ordinance. He recommended approval to extend the
ordinance.
There was no public comment.
Motion: David Faber moved to approve first reading of Ordinance 3185 Extending
the Cable Television Franchise Held by WaveDivision 1, LLC. Amy Howard
seconded.
Vote: motion carried unanimously, 5-0 by voice vote.
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Resolution 17-049 Authorizing the City Manager to Execute a Law
Enforcement Participation Agreement with the Washington Department of
Enterprise Services for the Transfer of Surplus Federal Property
City Manager David Timmons and Police Chief Michael Evans reported on the need
to participate in this state program in order to allow the City to purchase surplus
equipment at lower or reduced cost than new equipment.
There was no public comment.
Motion: David Faber moved to approve Resolution 17-049 Authorizing the City
Manager to Execute a Law Enforcement Participation Agreement with the
Washington Department of Enterprise Services for the Transfer of Surplus Federal
Property. Pamela Adams seconded.
Vote: motion carried unanimously, 5-0 by voice vote.
PRESIDING OFFICER'S REPORT
Mayor Stinson reported-
- Attendance at an Economic Development Council meeting with Port/County/City on
hygiene station options
- Attendance at continuing strategy discussions with the City, Port and NWMC
- Meeting with Senator Patty Murray to share housing shortage challenges and raising
concerns about the US Navy and importance of historic tax credit funding
- Attendance at Affordable Housing roundtable with Peninsula Housing Authority
CITY MANAGER'S REPORT
City Manager David Timmons provided an update on the Cherry Street project,
including recent publicized concerns for the safety and security of the apartment
building. Homeward Bound is forming their new board and Fred Kimball would assist
them with putting together their budget and financing plan. He also reported meeting
with the Fort Worden Public Development Authority and Port of Port Townsend about
their energy upgrades.
2017/2018 Budget Status
Mr. Timmons reported that staff continues to work on a final budget reconciliation
and are closely monitoring 2017 sales tax revenues. For the 2018 budget, staff
would attempt to address deferred maintenance with additional staffing in streets,
parks, and special events. Reconciling the capital projects plan is also underway.
Outside of modest adjustments, the budget would be primarily status
quo. Insurance estimates are lower than previously anticipated and there is good
news to come forward on water and sewer rates. The challenge for 2018 is how
aggressively to budget estimated revenues. State historic tax credits are proposed
to be eliminated at the federal level with significant negative impacts in the
community.
Finance and Administrative Services Director Nora Mitchell reiterated the need to
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be cautious with adding staffing with one-time revenues. Bringing efficiencies in the
proposed B&O tax structure could help fund a parks position.
SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR
STUDY SESSION
Mr. Gray made several comments on the following: planting of new trees at the
roundabout, adding a volunteer coordinator position might save the City money, urged
Council discussion of the advisory board and committee structure, and concerns for
those at risk under the Affordable Care Act.
Mr. Gross noted that the Council Code of Ethics Committee meets on October 19 at 3
p. M.
Mayor Stinson reminded Council of the Special Business Meeting on October 30 for a
report on the communications strategy.
ADJOURN
There being no further business, the meeting adjourned at 8:11 p.m.
Attest:
Joanna Sanders, MMC
City Clerk
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