HomeMy WebLinkAbout050718CITY OF PORT TOWNSEND
MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF MAY 7, 2018
CALL TO ORDER
The Port Townsend City Council met in regular session on the 7th day of May 2018 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, David Faber, Robert Gray,
Amy Howard, Ariel Speser, and Deborah Stinson with Michelle Sandoval excused.
Staff members present were City Manager David Timmons, City Attorney Steve
Gross, Finance and Administrative Services Director Nora Mitchell, City Engineer
David Peterson, Planning Director Lance Bailey, Planning Manager Judy Surber, and
City Clerk Joanna Sanders.
CHANGES TO THE AGENDA
Resolution 18-026 Community Development Block Grant was moved to New
Business.
COMMENTS FROM THE PUBLIC
Public comment
Monica Mick -Hager urged expanding opportunities for public comment.
CONSENT AGENDA
Approval of Bills, Claims and Warrants
Vouchers 159608 through 159779 and Electronic Fund Transfers in the amount of
$1,937,851.44.
Appointment of Brenda McMillan (Position 6, term expires May 1, 2021) and
Debbie Jahnke (Position 7, term expires May 1, 2021) to the Parks, Recreation
and Tree Advisory Board; Appointment of Charles Paul (Position 4, term
expires May 1, 2021) and Richard Berg (Position 5, term expires May 1, 2021)
to the Historic Preservation Committee; Appointment of Owen Rowe (Position
4, term expires May 1, 2021) to the Arts Commission; Appointment of Barb
Trailer (Position 5, Recipient, term expires May 1, 2021), Nathan Barnett
(Position 11, Collector, term expires May 1, 2021), and the Executive Director
City Council Business Meeting May 7, 2018 Page 1 of 6
of the Port Townsend Main Street, or any Designee of the Executive Director
(Non-voting Position 12, term expires May 1, 2021) to the Lodging Tax
Advisory Committee; Appointment of Sarah Fairbank (Position 2, term expires
May 1, 2021) to the Library Advisory Board; Appointment of Hendrik Taatgen
(Position 4, term expires May 1, 2021) and Sam Feinson (Position 5, term
expires May 1, 2021) to the Non -Motorized Transportation Advisory Board
Motion: David Faber moved to approve consent agenda. Amy Howard seconded.
Vote. motion carried unanimously, 6-0 by voice vote.
PUBLIC HEARING
Ordinance 3198 Amending the Critical Areas Ordinance Codified in Chapter
19.05 of the Port Townsend Municipal Code and Corollary Amendments to the
Shoreline Master Program; Completing the 2016 GMA Periodic Update
Planning Manager Judy Surber gave the staff briefing as detailed in the agenda
packet.
Mayor Stinson reviewed the public hearing procedures. There were
no Council financial or property issues to disclose in connection with this matter.
There being no public comment, the public testimony was closed.
Planning Commissioners Monica Mick -Hager and Rick Jahnke spoke about the
Planning Commission review process.
Ms. Surber responded to Council questions regarding the de -listing of eagles
and reference to the definition for agricultural lands. She explained the difference
between critical drainage corridors and drainage ways as it relates to mapping. She
noted that guidance was provided by staff related to maintenance of existing trails in
critical drainage areas and there would be a separate review by Ecology. Ms.
Surber referred to the Planning Commission version of amendments for the
clarifying edits and addressed Council's specific questions.
Mayor closed the public testimony portion of the hearing and then closed the public
hearing.
Motion. David Faber moved to approve first reading of Ordinance 3198 Amending
the Critical Areas Ordinance Codified in Chapter 19.05 of the Pon` Townsend
Municipal Code and Corollary Amendments to the Shoreline Master Program;
Completing the 2016 GMA Periodic Update with additional staff recommended
amendments provided in Attachment 4 and addendum provided at the
meeting related to SEPA. Pamela Adams seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
NEW BUSINESS
City Council Business Meeting May 7, 2018 Page 2 of 6
Ordinance 3199 Related to Utility Rates; Amending the Water and Sewer
Rates; Amending the Low -Income Utility Program Criteria, Amending
Chapters 13.01 and 13.05 of the Port Townsend Municipal Code, and
Establishing an Effective Date
Finance and Administrative Services Director Nora Mitchell gave the staff report
with a review and background of the changes. She responded to questions about
qualifying programs to prove low-income eligibility.
There was no public comment.
Motion: David Faber moved to approve waiving Council Rules and approving
Ordinance 3199 Related to Utility Rates, Amending the Water and Sewer Rates;
Amending the Low -Income Utility Program Criteria, Amending Chapters 13.01 and
13.05 of the Port Townsend Municipal Code, and Establishing an Effective Date.
Amy Howard seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
Ordinance 3200 Related to Taxation; Adopting a Multifamily Tax Exemption
Program, Designating Residential Target Areas, Adding a New Chapter 3.15
"Multi -Family Tax Exemptions" to the Port Townsend Municipal Code
City Attorney Steve Gross and Planning Director Lance Bailey briefed Council on
the ordinance. They reviewed the residential target areas and described the criteria
for mapping the areas shown in Exhibit B to the Ordinance. Mr. Gross referred to
the statute related to the terminology "multi -family" and "multiple -unit." He noted
that Council could either adopt the map or ask staff to target particular areas to
encourage development. Council could also choose to adopt a definition of urban
centers for the residential target areas. He responded to questions about the 8 and
12 -year exemptions.
Questions to which Mr. Bailey responded related to the criteria for the definitions of
services, the map of the uptown area, and the likelihood for development of multi-
family units. Further discussion ensued about the pros and cons of limiting
the areas and/or prioritizing Rainier Street to further subarea plan planning.
Motion. David Faber moved to approve first reading of Ordinance 3200 Related to
Taxation, Adopting a Multifamily Tax Exemption Program, Designating Residential
Target Areas, Adding a New Chapter 3.15 "Multi -Family Tax Exemptions" to the
Port Townsend Municipal Code and to direct staff to schedule a public hearing for
the designation of Residential Target Areas for May 21, 2018. Amy Howard
seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
Ordinance 3201 Providing for the Issuance and Sale of a Limited Tax General
Obligation Bond in the Principal Amount of not to Exceed $834,000 to Provide
Funding for the Homeward Bound Housing Project; Fixing or Setting
Parameters with Respect to Certain Terms and Covenants of the Bond;
City Council Business Meeting May 7, 2018 Page 3 of 6
Appointing the City's Designated Representative to Approve the Final Terms
of the Sale of the Bond; and Providing for Other Related Matters
City Manager David Timmons noted this ordinance and the following resolution are
interrelated. In explaining Staffs recommendation, Finance and Administrative
Services Director Nora Mitchell noted the more flexible option was listed in the
ordinance. It reflects a higher interest rate of 4.85% that could be repaid anytime
during the life of the loan. A second option was listed in the agenda bill.
In response to questions, Mr. Gross explained the reverter agreement and the
requirement for the property to remain low income for 40 years. Mr. Timmons noted
that $130,000 was estimated for construction costs.
Michael Szatlocky responded to questions regarding the three phases of the budget
(purchase and sale, Phase 1, and Phase 2 to complete the bottom four units).
Referring to an eight -page spreadsheet of project costs submitted to the City, he
explained roughly $130,000 was allocated for any unforeseen costs.
Staff responded to additional questions about the alternate rate and prepayment
rules. Upon passage, it was noted that Section 9 may need to be revised to
stipulate prepayment penalty language. City Attorney Gross clarified that the
authority to amend these final terms is written into the ordinance.
There was no public comment.
Councilmember Gray expressed concern about Homeward Bound's ability to repay
the loan. He suggested the City hire a CPA firm to analyze and audit the project
and recommended the City forgive the $250,000 loan.
Melinda Szatlocky of Homeward Bound responded to questions and briefed Council
on the financial and project expertise sought to develop the proforma. Some
discussion ensued about the pre -payment penalty. Mr. Timmons and Ms. Mitchell
explained that financial advisor Scott Bauer provided the City advice on this matter.
They described the loan terms of Kitsap Bank and the different financing options.
Mike Szatlocky and Mark Cooper (on behalf of Homeward Bound) explained the
separate proformas prepared for the submission (Homeward Bound and Cherry
Street property). The Cherry Street proforma reflects their ability to begin repaying
the loan in year three from reserves collected in years one and two.
Motion: Amy Howard moved to approve waiving Council Rules and approving
Ordinance 3201 Providing for the Issuance and Sale of a Limited Tax General
Obligation Bond in the Principal Amount of not to Exceed $834, 000 to Provide
Funding for the Homeward Bound Housing Project; Fixing or Setting Parameters
with Respect to Certain Terms and Covenants of the Bond; Appointing the City's
Designated Representative to Approve the Final Terms of the Sale of the Bond; and
Providing for Other Related Matters. Pamela Adams seconded.
Mr. Gray moved to amend the motion to approve first reading only. The motion
failed for a lack of a second.
City Council Business Meeting May 7, 2018 Page 4 of 6
Vote: motion carried, 5-1 by voice vote, Robert Gray opposed..
Resolution 18-027 Related to Affordable Housing at the City's Cherry Street
Properties; Authorizing the City Manager to Execute a Loan Agreement with
Homeward Bound D/B/A Olympic Housing Trust
Mr. Timmons gave the staff report.
Homeward Bound Board Member Mark Cooper addressed additional Council
questions about the proforma, Homeward Bound staffing, and their operating
budget. Mr. Gross noted the promissory note is secured in three ways.
There was no public comment.
Motion: Ariel Speser moved to approve Resolution 18-027 Related to Affordable
Housing at the City's Cherry Street Properties, Authorizing the City Manager to
Execute a Loan Agreement with Homeward Bound D/B/A Olympic Housing Trust.
Pamela Adams seconded.
Vote: motion carried, 5-1 by voice vote, Robert Gray opposed.
Tasking of the Ad Hoc Committee on Housing with Review of Interlocal
Agreements Related to Housing
Mr. Timmons gave the staff report on the proposed review of the interlocal
agreements between the City, County, and OlyCap. There was no public comment.
Motion: Pamela Adams moved to approve tasking the Ad Hoc Committee on
Housing with a review of the current Interlocal Agreements and to forward to
Council any recommendations that may develop from its review. Ariel Speser
seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
RESOLUTION 18-026 AUTHORIZING EXECUTION OF DOCUMENTS AND
DISBURSEMENT FUNDS FOR A LOAN OF COMMUNITY REDEVELOPMENT
BLOCK GRANT FUNDS
Mr. Gross reviewed the application being recommended for approval for the Belmont
1885 LLC for the Sterming Block Building. He responded to questions about the
CDBG HUD loan program.
There was no public comment.
Motion: David Faber moved to approve Resolution 18-026 Authorizing Execution of
Documents and Disbursement Funds for a Loan of Community Redevelopment Block
Grant Funds Pamela Adams seconded.
Vote: motion carried unanimously, 6-0 by voice vote.
PRESIDING OFFICER'S REPORT
City Council Business Meeting May 7, 2018 Page 5 of 6
Mayor Stinson reported on the following:
- Meeting with City staff, County representative and Department of Health regarding
the challenges for the Olympic Discovery Trail at Eaglemount
- Welcomed attendees to the Revitalize conference
- Governor Inslee's recent visit to Port Townsend including a Fort Worden campus
tour
- Creative Districts Forum
CITY MANAGER'S REPORT
City Manager David Timmons reported on the following:
- Deputy Clerk Joshua Stecker leaving the City to work for the City of Gig Harbor
- Progress on the new website design
- Rhody festival sidewalk prints removed from Water Street are in storage
for placement elsewhere
- Water Street paving is ongoing
- Seton Construction was awarded the Big Quilcene dam project
- Mountain View project is underway
- WCMA presenter related to state solidarity movement
- Active recruitment for new City Attorney to replace Steve Gross, who is returning to
the City of Auburn
- Progress on Subarea Planning
SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR
STUDY SESSION
Ms. Speser suggested the Jefferson County Substance Abuse Advisory Board
appointment be addressed on a future agenda.
COMMENTS FROM COUNCIL
Mr. Gray recognized three community members for their work in the community: Vern
Garrison for Rainier Street affordable housing and property donation to Habitat for
Humanity, Ken Kelly's development of his Upper Sims Way machine shop, and Mark
Zenger of Western Investment for his work in the Port Townsend Business Park
and south Rainier Street development, including the planting of 23 red maple trees.
ADJOURN
There being no further business, the meeting adjourned at 9:32 p.m.
Attest:
Joanna Sanders, MMC
City Clerk
City Council Business Meeting May 7, 2018 Page 6 of 6