HomeMy WebLinkAbout111317CITY OF PORT TOWNSEND
MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF NOVEMBER
13, 2017
CALL TO ORDER/PLEDGE OF ALLEGIANCE
The Port Townsend City Council met in special session on the 13th day of November
2017 in Council Chambers at 540 Water Street. Mayor Stinson called the meeting to
order at 6:30 p.m.
ROLL CALL
Councilmembers present at roll call were Pamela Adams, Robert Gray, Amy Howard,
Catharine Robinson, Michelle Sandoval, and Deborah Stinson with David Faber
excused.
Staff members present were City Manager David Timmons, City Attorney Steve
Gross, and Finance and Administrative Services Director Nora Mitchell.
PUBLIC HEARING
Ordinance 3188 Fixing and Adopting 2018 Property Tax Levies for the General
Levy with a Total Increase of Zero Percent (0.00%) and for the Emergency
Medical Services Levy an Increase of Approximately Three and 0/10 Percent
(3.00%) (Includes Banked Capacity) and a Voter -Approved Tax Levy for the
Mountain View Commons Capital Improvements of $.10050 per $1,000 of
Assessed Property Value (Continued from November 6th)
Mayor Stinson announced the continuation of the public hearing. There being no
public comment, she closed the public hearing.
Finance and Administrative Services Director Nora Mitchell reviewed the summary
in the agenda bill on banking the 1 % increase for general levy and Mountain View
Commons Capital Improvements. By agreement with East Jefferson Fire Rescue
(EJFR), the City would still need to pay the 1% increase amount of $6,876 to EJFR.
Additionally, the Library Fund's expenditures for 2018 are projected to exceed its
revenues for 2018. City staff proposes that the Council Reserve be reduced for
2018 by $39,680 to fund the impact of not levying the 1 % increase. The General
Fund would then transfer revenue equal to the 1 % increase for each of these lid lifts
to the Library and Fire/EMS funds. The ordinance reflects the change but the
budget numbers have not yet been modified. Staff instead provided an additional
handout reflecting the budget impacts of the changes.
City Manager David Timmons led a discussion of the options if Council chose to
bank the 1 % statutory levy increase. Clarifying questions from Council related to the
balance that would remain in the Council Reserve ($45,000), costs associated with
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the City Manager recruitment, other tax impacts, and continued or
even increased support for SDC deferrals from the housing fund. There was a
concern about Council changing its decision on the property tax from that at first
reading.
Motion: Catharine Robinson moved to approve Ordinance 3188 Fixing and
Adopting 2018 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 Three and 0/10 Percent (3.00%) (Includes Banked Capacity) and a
Voter -Approved Tax Levy for the Mountain View Commons Capital Improvements
of $.10050 per $1, 000 of Assessed Property Value (as amended) Amy Howard
seconded.
Vote: motion carried, 5-1 by voice vote, Robert Gray opposed.
UNFINISHED BUSINESS
Ordinance 3187 Adopting 2017 Supplemental Budget Appropriations
Ms. Mitchell reported that at the November 6 meeting Council approved first
reading. She then gave a detailed review of the list of expenditures included in the
supplemental budget summary. She noted two additional handouts were provided
in the packet.
Motion: Michelle Sandoval moved to approve Ordinance 3187 Adopting 2017
Supplemental Budget Appropriations. Pamela Adams seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
NEW BUSINESS
Ordinance 3191 Related to Utility Rates; Amending the Capital Surcharge on
Water Rates, and Amending Section 13.05.030 of the Port Townsend Municipal
Code, and Establishing an Effective Date
Ms. Mitchell gave a briefing on the history of water and sewer rates. The water
surcharge is currently scheduled to be raised to $24 on January 2018. FCS Group
has completed its first round of the utility rate study and determined the rate
increase is not required. Staff recommended approving the ordinance reducing the
adopted water surcharge to $20 per account per month and $24 per month for
customers outside the City. Other rates would remain the same.
Mr. Timmons reviewed the financing associated with the construction of the water
treatment facility.
There was no public comment.
Staff responded to Council questions about the listed rates and FCS Group's future
review of the capital surcharge for stormwater. There was a request by Mr. Gray for
the number of water shutoffs and number of customers in arrears before second
reading.
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Motion. Catharine Robinson moved to approve first reading of Ordinance 3191
Related to Utility Rates; Amending the Capital Surcharge on Water Rates, and
Amending Section 13.05.030 of the Port Townsend Municipal Code, and
Establishing an Effective Date. Pamela Adams seconded.
Vote: motion carried, 5-1 by voice vote, Robert Gray opposed.
Resolution 17-052 Related to Affordable Housing; Authorizing the City
Manager to Extend the Repayment Date on the Loan to Homeward Bound
DIB/A Olympic Housing Trust
Mr. Timmons gave the staff report recommending the loan extension for one year.
He recognized Homeward Bound's efforts to date to organize, create a community
land trust, and secure commercial funding.
Council questions concerned the interest rate on the loan (2.5%) and Homeward
Bound's use of grant funds to date. Councilmembers expressed interest in the
success of the project. There was also a desire for a Council briefing on
the project as well as an opportunity to discuss concerns about the project
timeline. Mr. Timmons agreed to provide Council with more information on
construction. He noted that there is a plan to finance the project and the preparation
of a management plan would follow.
Public Comment:
Monica Bell spoke about the Homeward Bound progress on its reorganization.
Kevin Coker, member of the design team for Homeward Bound, spoke about the
permitting progress and project delays.
During deliberations, there were comments about the unconventional nature of the
project and also recognition that the City might have to assist or take over the
project financing. Other comments were to continue to support Homeward Bound
as an affordable housing provider and also give them additional time to complete
the project.
Motion: Catharine Robinson moved to approve Resolution 17-052 Related to
Affordable Housing; Authorizing the City Manager to Extend the Repayment Date
on the Loan to Homeward Bound D/B/A Olympic Housing Trust. Pamela Adams
seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
Motion to amend the main motion and delay action until December 11 until the
financing plan is received. Moved by Robert Gray, seconded by Michelle Sandoval.
During discussion, Mr. Timmons reminded that the current loan is due December
26, 2018 and final budget estimates on the project are still forthcoming. There was
discussion about the potential for the withdrawal of the loan, the process for
extending the loan, and impacts to the budget.
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Mr. Gray then withdrew the motion.
At 8:01 p.m. the meeting paused for the purpose of a break.
At 8:08 p.m., the meeting resumed. Ms. Howard was excused from the remainder of
the meeting.
Resolution 17-053 Authorizing an Interfund Loan Related to Affordable
Housing
Mr. Timmons gave the staff report on the creation of an interfund loan. Staff clarified
that December 31, 2019 was established so that payment of the interfund loan does
not have to be extended in the event there are delays. There are no other interfund
loans currently. The loan would be repaid through permanent financing identified by
Homeward Bound.
There was no public comment.
Motion: Pamela Adams moved to approve Resolution 17-053 Authorizing an
Interfund Loan Related to Affordable Housing. Catharine Robinson seconded.
Vote: motion carried unanimously, 5-0 by voice vote.
Resolution 17-054 Related to Fire Services; Directing the City Manager to
Negotiate a Pre -Annexation Memorandum of Agreement and Possible
Amendments to Existing Interlocal Agreements
Mr. Timmons briefed Council on the 2010-2011 discussions related to fire
annexation and valuation cycles that kept the annexation from moving forward. He
recommended authorizing an agreement to address pre -annexation issues
including background, election, levels of service, and changes to the district
board. He outlined a plan to host a series of town meetings to engage the public on
community values, financing, and options for consideration. Staff would bring back
a proposal for the public process after the first of the year, along with an agreement,
and eventually an ordinance proposing annexation to the District.
Council questions were about the base funds in the fixed levy rate and how those
increase over time with funds rolling into the General Fund. There was agreement
on the need to review the history behind the prior discussions on annexation.
Motion: Catharine Robinson moved to approve Resolution 17-054 Related to Fire
Services; Directing the City Manager to Negotiate a Pre -Annexation Memorandum
of Agreement and Possible Amendments to Existing Interlocal Agreements. Pamela
Adams seconded.
Vote: motion carried unanimously, 5-0 by voice vote.
2018 Budget Discussion
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Ms. Mitchell reviewed the budget timeline giving an introduction and overview of
revenues and expenses. She reviewed staffing and compensation detail, unmet
needs, and adherence to financial policies. Mr. Timmons spoke about long-term
sustainability and the need for added positions in the water utility and the need for a
sewer vac replacement.
Staff addressed Council questions in the following areas: staffing, cost of living
adjustments, benefit increases, affordable housing permits and deferments, and
annual debt service payments. Ms. Mitchell urged Council to provide their questions
and said there would be some corrections such as the water surcharge increase as
was approved tonight.
There was no public comment.
ADJOURN
There being no further business, the meeting adjourned at 9:07 p.m.
Attest:
Joanna Sanders, MMC
City Clerk
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