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HomeMy WebLinkAbout111824 City Council Business Meeting Packet PORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m.November 18, 2024 Attend in person or virtually via computer or tablet at https://zoom.us/j/98187633367enter the Webinar ID 98187633367 Phone only (muted - listen-only mode) United States: Local Dial In – 1(253)215- 8782,,98187633367# Submit public comment to be included in the meeting record to: https://publiccomment.fillout.com/cityofpt If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clerksupport@cityofpt.us I.Call to Order II.Roll Call III.Changes to the Agenda IV.Proclamation(s) or Special Presentation(s) V. City Manager’s Report VI. Comments from the Public (re consent agenda items and items not on the agenda) (Each person has 3 min. to comment- City Clerk will signal at 2 min. 30 sec.) A. Public comment B. Staff or Council response, as needed VII.Closed Session – Pursuant to RCW 42.30.140 (4)(b) General Government Negotiations (Approximately 15 minutes) VIII.Executive Session- Pursuant to RCW 42.30.110(1)(i) Discussion with legal counsel about current or potential litigation (Approximately 15 minutes) IX.Consent Agenda Action: Moveto adopt the consent agenda and/or request to remove any individual item from the consent agenda. A.Approval of Bills, Claims and Warrants B.Approval of Minutes:October 21, 2024 C.Appointment/Reappointment: Arts Commission D.2024 Second Quarter Financial Update X.Public Hearing(Continued) A.Preliminary Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending in December 31, 2025. Proposed Action: Move to approve first reading of Ordinance 3343 Adopting the Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2025 i.Staff Presentation ii.Comments from members of the public iii. Response from staff iv. Questions from Council members v. Clarifying comments from the public, if necessary vi. Council deliberation and action XI. Public Hearing A. Ordinance 3342 Adopting the General Sewer Plan, Providing for Severability, and Establishing an Effective Date Proposed Action: Move to approve first reading of Ordinance 3342 Adopting the General Sewer Plan, Providing for Severability, and Establishing an Effective Date i. Staff Presentation ii. Comments from members of the public iii. Response from staff iv. Questions from Council members v. Clarifying comments from the public, if necessary vi. Council deliberation and action XII. Unfinished Business (None) XIII. New Business A. Letter of Support to Jefferson County Expansion of the UGA to Include Publicly-Owned Parcels of Public Purpose Uses, Including the Caswell-Brown Village for Housing Services Proposed Action: i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action B. Authorize the City Manager to Sign a Contract with Active Construction Incorporated (ACI) for Construction of the Water Street Sewer Replacement Project in the Amount of $ 2,360,360 Including WSST and Enter into Agreement with RH2 Inc. Consulting Firm and Other Firms Necessary to Provide Construction Management Services. Proposed Action: Move to authorize the City Manager to enter into contracts with ACI Inc. Inc. for the Water Street Sewer Replace Project construction in an amount of $2,360,360.00 and RH2 Inc., Inc. for the Water Street Sewer Replace Project construction management services in an amount of $41,000.00. i. Staff presentation and Council questions ii.Public Comment iii. Council deliberation and action XIV. Presiding Officer’s Report XV. Suggestions for Future Agendas XVI. Comments from Council XVII. Adjourn PORT TOWNSEND CITY COUNCIL CONSENT AGENDA November 18, 2024 A. Approval of Bills, Claims and Warrants: Vouchers 175452 through 175627 in the amount of $1,546,028.08 B. Approval of Minutes: October 21, 2024 C. Appointment/Reappointment: Arts Commission D. 2024 Second Quarter Financial Update Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item fromthe consent agenda). DRAFT October 21, 2024 City Council Business MeetingPage 1 of 6 DRAFT October 21, 2024 City Council Business MeetingPage 2 of 6 DRAFT October 21, 2024 City Council Business MeetingPage 3 of 6 DRAFT October 21, 2024 City Council Business MeetingPage 4 of 6 DRAFT October 21, 2024 City Council Business MeetingPage 5 of 6 DRAFT October 21, 2024 City Council Business MeetingPage 6 of 6 Agenda Bill AB24-163 Meeting Date: November 18, 2024 Agenda Item:Consent IX.C Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Mayor Faber Date Submitted: November 14, 2024 Department: Mayor Contact Phone: 379-2980 SUBJECT: Appointment of Simon Lynge (Position 1, Term Expires May 1, 2026) to Arts Commission CATEGORY: BUDGET IMPACT: n/a Consent Resolution Expenditure Amount: $ Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: 010-011 GF - Mayor & Council SUMMARY STATEMENT: The Mayor is recommending the following appointments: 1. Appointment of Simon Lynge (Position 1, Term Expires May 1, 2026) to Arts Commission ATTACHMENTS: Citizen Advisory Boards, Commissions, Task Forces, Committees & Subcommittees Current Rosters CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: If adopted as part of the Consent Agenda, no further action is needed; this effectively represents unanimous approval of the appointments. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: PARKS, REC, TREES & TRAILS ADVISORY BOARD (5-7)HISTORIC PRESERVATION COMMITTEE (5-7) Council Liaison: Monica MickHagerCouncil Liaison: Monica MickHager Meets Bi-monthly 4:30pm 4th Tuesday at City Hall Meets 3:00pm 1st Tuesday at City Hall Pos.Name & ExperienceExp.Pos.NameExp. Matt Miner5/1/25Kathleen Knoblock5/1/26 11 Jim Todd5/1/26Michael D'Alessandro5/1/26 22 Richard Hefley 5/1/27Monica Mader5/1/26 33 4 Pamela Adams5/1/25Walt Galitzki5/1/27 4 Rebecca Kimball5/1/25VACANT5/1/24 55 Russell Hill 5/1/27Craig Britton, Chair 5/1/25 66 Deborah Jahnke, Chair5/1/27VACANT5/1/25 77 LODGING TAX ADVISORY COMMITTEE (11 voting)ARTS COMMISSION (9 max.) Council Liaison: NoneCouncil Liaison: Ben Thomas Meets 3:00pm quarterly 2nd Tuesday at City HallMeets 3:00pm 1st Wednesday at City Hall Pos.Name & RoleExp.Pos.NameExp. Owen Rowe, Chair (Elected Official)N/AVACANT 5/1/26 11 Sarah Copley (At Large Position)5/1/26Alexis Arrabito5/1/26 22 Cindy Finnie (At Large Position)5/1/25Sheila Long5/1/26 33 Katy Goodman (Recipient)5/1/25Heidi Tullman 5/1/27 44 VACANT (Recipient)5/1/24Lindsey Wayland, Chair5/1/25 55 Danielle McClelland (Recipient)5/1/25 6 Anna Quinn 5/1/25 6 Denise Winter (Recipient)5/1/25Joe Gillard5/1/27 77 VACANT (Collector)5/1/22Dan Groussman5/1/25 88 Kate Philbrick (Collector)5/1/25Cristina Silva 5/1/27 99 Natalie Maitland, Fort Worden PDA Designee 5/1/26 10 (Collector) VACANT (Collector)5/1/24 LIBRARY ADVISORY BOARD (5-7) 11 Main Street Designee (Nonvoting)5/1/27 Council Liaison: Owen Rowe 12 Designee (Nonvoting)5/1/26 Meets Bi-monthly 1:00pm 2nd Tuesday at the LLC 13 Pos.NameExp. 14 VACANT (Nonvoting)5/1/20 1 William C. "Chuck" Henry 5/1/25 FINANCIAL SUSTAINABILITY TASK FORCE Kathleen Hawn5/1/27 2 Council Liaison: None3 Susan Ferentionos5/1/27 TBDDiane Walker5/1/26 4 Pos.NameExp. Alyssa Fuehrer5/1/26 5 Catharine RobinsonN/ADiana Grunow 5/1/26 16 Earll MurmanN/A 7 David Tolmie5/1/25 2 John NowakN/A 3 Richard JahnkeN/A 4 VACANTN/A 5 VACANTN/A 6 VACANTN/A 7 VACANTN/A 8 PEG ACCESS COORDINATING COMMITTEE (8)PLANNING COMMISSION (7) Meets 3:30pm 2nd Tuesday at the Gael Stuart BuildingMeets 6:30pm 2nd & 4th Thursday at City Hall Pos.NameExp. Name _______, City Council (Chair)Samantha Bair Jones, Vice Chair 12/31/24 1 Joanna Sanders, City ClerkStephen Mader 12/31/26 2 Melody Eisler, Library DirectorRick Jahnke, Chair12/31/24 3 John Polm, School District SuperintendentViki Sonntag12/31/26 4 ________, School District Video InstructorLois Stanford 12/31/25 5 Richard Durr, School District RepresentativeRobert Doyle12/31/25 6 VACANT, Video ProfessionalAndreas Andreadis12/31/24 7 _____________, Citizen Representative VACANT, Student Representative CIVIL SERVICE COMMISSION (3) Meets as needed VACANT Producers Group Representative (Optional) Pos.NameExp. VACANT Education Group Representative (Optional) Darryl Elmore 12/31/25 1 CLIMATE ACTION COMMITTEE (15)Troy Surber12/31/24 2 Meets bi-monthly 3:00 p.m. on 2nd TuesdayRichard Sussman 12/31/26 3 Exp. Pos.Name N/A FORT WORDEN PDA (9-11) 1 Jefferson County BoCC ( Kate Dean) N/A Council Liaison: Libby Wennstrom 2 City Council (Owen Rowe) N/A Meets at Fort Worden Commons B 3 JeffPUD (Jeff Randall - Vice Chair) Pos.NameExp. N/A 4 Jefferson County Public Health (Laura Tucker) N/ABrad Mace10/24/25 51 Jefferson Healthcare (Kees Kolff)- Chair N/ATracy Garrett 10/24/25 62 Jeff. Transit (Nicole Gauthier/Sara Peck) N/ADavid King10/24/26 73 Port of PT ( Carol Hasse/Eric Toews) N/AAndrew Cashin 10/24/26 84 PT Paper Corp. (Michael Clea) 12/31/26John Begley10/24/24 95 Cindy Jayne - Vice Chair 12/31/25Steve Dowdell 10/24/24 106 Crystie Kisler - At Large ` 12/31/25Robert Davis 10/24/24 117 David Wilkinson 12/31/24 128 Jaime DuyckVACANT10/24/22 12/31/2410/24/25 139 Krista Meyers - At Large 12/31/2610/24/25 1410 Kate Chadwick (Policy) Dave Seabrook 12/31/2410/24/25 1511 EQUITY, ACCESS, AND RIGHTS ADVISORY BOARD Council Liaison: Amy Howard Meets 2nd Thursday at 12:30 at Council Chambers Pos.NameExp. Stephanie Burns5/1/25 1 Gabrielle Vanwert5/1/26 2 Julia Cochrane5/1/27 3 Cameron Jones 5/1/25 4 Aimee Krouskop5/1/26 5 6 Alyson McWilliams5/1/27 Richard Rogers 5/1/25 7 Laurie Riley5/1/26 8 Francisca Ramirez Aquino5/1/27 9 Agenda Bill AB24-164 Meeting Date: November 18, 2024 Agenda Item:Consent IX.D Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Richard Gould, Finance Manager Date Submitted: October 24, 2024 Department:Finance Contact Phone:360-379-4406 SUBJECT: 2024 Second Quarter Financial Update CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: The Second Quarter Financial Report for 2024 provides a summary of the financial activity through June. Financial results remain on target. The City’s reserves continue to remain strong and within policy parameters, keeping the City in a good financial position. Key general government revenues such as sales tax, property tax, lodging tax and development and permitting fees are on target and coming in as expected primarily due to strong results in the retail, construction, and accommodation segments of the market. Real estate excise tax results show transaction activity has slowed in comparison to the last couple of years. The City continues to reap revenue benefits from the new investment strategy implemented by the finance department due to the higher interest rates. Due to this success, we will continue to increase investments in 2024 leveraging the higher interest rates as long as we are able to and thereby maximizing investment revenue. The City remains in a good financial position. Revenues are coming in as expected while expenses are under budget due to vacancies and timing of projects. The City is positioned for the higher expense activity (capital projects) that did not occur this year even as some of this moves into 2025. The Consumer Price Index or CPI peaked in 2022 and continues to drop now at 3.8% down .8 from a year ago at this time. We continue to watch for other key indicators in the national economy that will impact us locally. Some of those indicators include the real estate market trends, corporate orders and profits, plus overall employment. There is no way to know the future, but the goal is to remain thoughtful and diligent while utilizing the resources we have available without overextending our bounds. Staff continues to look for the right balance. As a cash basis reporting entity, some of the variances to the annual budget identified in the report summaries may be a result of timing of either the cash receipt of the revenues or cash payment of the expenditures. ATTACHMENTS: 1. 2024 Second Quarter Fund Summary CITY COUNCIL COMMITTEE RECOMMENDATION: Place this on the Consent Agenda. RECOMMENDED ACTION: Council approval. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Quarterly Financial Report FY 2024Q2 June30, 2024 1 Contents Property Tax ………………………………………………… 5 Sales Tax ………….……………………………………… 5 Real Estate Excise Tax ……………………………………… 6 Business and Occupation Tax ………………………………… 6 All Revenue ………………………………………………… 7 All Expenditures ……………………………………………. 8 Wages & Benefits …………………………………………… 9-10 Debts & Investments ………………………………………… 11-12 2 2024 Second Quarter Report 2024 -Fund Financial Status Analysis The following analysis is on the second quarter financial report for 2024. This analysis th provides a summary of the financial activity through June 30. The second quarter is usually more indicative of the budget as we have now reached the halfway point in the fiscal year. Property tax revenue, for example, now has a reliable trend to be measured upon. This is also true of other main revenues such as sales taxes and real estate excise taxes (REET). The same can be said for many expenditures as well such as labor costs (wages and benefits), debt and interfund transfers (including overhead allocations). The fund balance has increased by $1.86m th as of June 30. In the 2024 budget the City is projected to see a decrease in cash of $1.81m. Looking at the “revenue vs expense” summary statement you can see that the most significant reasons for this current $3.7m difference can be found in Enterprise Funds ($2m), Special Revenue Funds ($1.2m) and Debt Service Funds ($431k). Single significant impacts are seen in ARPA, as transfers have yet to be made for a projected $690k and in the Water/Sewer Fund where transfers, payroll and Water Quality/WTF Operations are significantly under budget ($1m). Storm Operations and Capital expenditures are also significantly under budget at this point ($727k), possibly due to lower levels of staffing and capital activity. Though the City is struggling with some understaffed departments (finance/police/public works) we, the staff have been able to positively manage the 2024 budget keeping the City in a strong financial position. The following comments highlight other significant activity in Q2: Investments continue to bring in over budget revenues due to the aggressive policy change that was first started in 2023. Of the $496.5k budgeted revenues projected in 2024, we have already collected $428.6k! This is significantly over budget and projects out to come in near $1m! In 2023 at the 6-month mark the city had earned $238.3k at this point, a growth of almost 80% in 2024! The 2022 total investment interest earned was $167k, the policy is working to great benefits for the city’s revenue. Budgeted expenditures for 2024 stand at 11% under the projected budget amount for the halfway mark, almost $6,500,000. Some of this is due to timing on capital projects, for example. Though the city is short staffed and there are “savings” on labor costs, much of this is made up by increased consultant costs. ARPA transfers (costs) have yet to be made but certainly will be by year end and this makes up 10% of the mid-point cost reductions. Budgeted Revenues are under budget by 6%, nearly $3.7m less than projected. The single biggest impact here is in the Water/Sewer Capital Fund which is under budget by $3.8m! This is due to capital projects and miscellaneous water and sewer revenue budgeted amounts surpassing $4.3m. 3 Significant revenue trends are provided in the trend analysis reports that we have included with the main revenue/expenses budget in the actual report. The main revenues that we have prepared these trend analyses reports for include: (1) property taxes (8.5% growth); (2) sales taxes (12% growth); (3) real estate excise taxes (decline of 2.4%); (4) permits (declined 33.3%); (5) business licenses (1.6% growth) and (6) business & occupation taxes (3.9% growth). The thought process was that this would give a good indication of how the economy of Port Townsend was trending. The 2024 budget was amended in the Budget Supplement prepared in August and this will be addressed in the third quarter report. Most of this supplement was focused on cleaning up the rushed budget preparation in late 2023 due to staffing shortages. I mention this due to two adjustments (journal entries) to prevent the Capital Project Funds (300’s) from having a negative balance. This was addressed by accelerating interfund transfers from the General Fund, Street Operation Fund and the Real Estate Excise Tax Fund. This mostly came about due to grant proceeds timing issues being received in July and August. Overall, the City of Port Townsend’s cash position and fund reserves are strong. Staff recognizes that the tardiness of these second quarter reports is not optimal and is committed to having third quarter reports ready for review at the November’s Finance and Budget Committee Meeting. Thank you. Richard A. Gould Finance Manager 4 Property Tax th Property Taxes are up by 8.5% from 2023 as of June 30. This is a sign of multiple indicators such as assessed valuation and possibly new construction along with the 1% allowable on property tax increases. This is a positive sign though it is down from the 16.3% of growth last year at this time, it is still strong. Especially considering the limitations on raising property taxes in Washington State. All Funds Property Tax as of June 30th $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 20202021202220232024 Sales Tax th In the next chart, sales tax growth is growing at a rate of 12%as of June 30. This is up from last year when it was growing at a rate of 9.2% at mid-year. Another strong indicator is that Port Townsend’s economy is doing well in 2024. All Funds Sales Tax as of June 30th $3,000,000 $2,000,000 $1,000,000 $0 20202021202220232024 5 Real Estate Excise Taxes Real Estate Excise Taxes (REET) are collected from all real estate transactions. The utilization of this revenue is restricted to capital projects and projects identified in the capital facilities plan. th Real Estate Excise tax is downas of June 30by 2.4% compared with this date last year. However, while this is not great news it is better than last year significantly so,wherethe th downward trend was at 27.1% from 2022 as of June 30.It is not a direct indicator of the economy in Port Townsend,but it is likely impacted by higherinterest rates than in 2021 and early 2022. Real Estate Excise Tax as of June 30th $400,000 $300,000 $200,000 $100,000 $0 20202021202220232024 Business and Occupation Tax Another major revenue source for the General Fund is Business and Occupation tax(B&O). Port Townsendcollects this tax from businesses operating within city limits. For 2024, the budget for B&O tax is $3,905,702. So far, Port Townsendhas collected $2,191,307or 44% of the amount budgeted. General Fund B&O Tax By Month $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 20202021202220232024 6 All Revenue The table below shows the current revenue received through June for all funds. The City has currently received 44% of all budgeted revenues. Beginning fund balances are excluded from this table. Note: Revenues do not include the beginning balances for ease of reviewing current year revenue to budget estimates. City of Port Townsend 2nd Quarter Financial Report ~ 2024 Revenues Year - to - Date thru June Fund Types2024 BudgetedYTD Revenues% Received General Fund15,429,015.007,488,881.1949% Drug Enforcement0.000.000% Contingency Fund45,000.002,657.376% ARPA0.0012,290.780% Street Operations Fund1,585,003.00830,052.9952% Transportation Benefit Fund0.0098,894.510% Library Fund1,246,505.24723,776.9358% Real Estate Excise Tax Fund695,000.00269,866.2439% PW Admin Fund0.000.000% Lodging Tax Fund535,000.00207,355.1539% Fire and EMS Fund0.00145.690% Affordable Housing Fund95,000.005,409.506% Community Dev Block Grants20,000.0015,766.2779% Community Services Fund2,689,013.001,534,561.8957% G.O. Debt Service Fund1,127,896.00767,767.1968% General CIP Projects387,307.00614,209.10159% Street Vacation Proceeds0.00730.650% Street CIP Fund4,412,039.001,354,290.8331% 2015 GO Bonds0.000.000% 2017 GO Bond0.001,023.610% 2018 GO Bonds5,000.002,548.9251% 2020 GO Bond0.000.000% Water Sewer Fund9,361,129.005,634,339.5660% Storm Operations Fund1,211,324.00702,672.5658% Storm Capital Fund598,655.00335,542.4556% Water Sewer CIP7,290,215.00717,649.7110% 1956 Transmission Line Fund5,235,282.002,434,111.4446% 2020 Water Revenue Bond0.000.000% Golf Course Fund21,000.002,654.5613% Water/Sewer Debt Reserve Fund1,491,329.0047,228.783% System Development Charge785,000.00147,562.4619% Fleet Replacement Fund925,113.00230,446.1525% Fleet Operating & Maint. Fund554,792.00278,036.6150% IT Operating & Maint. Fund442,316.61221,174.0050% IT Replacement Fund46,600.0023,309.1750% Public Works Admininstration867,845.00340,242.6839% Engineering Services1,879,091.00728,108.3539% Unemployment Self-Insurance25,000.0024.920% Refundable Deposits0.000.000% Firemen's Pension Fund27,500.0020,390.6374% Golf Course Fund0.000.000% Custodial Fund0.0029,458.070% Refundable Surety Deposits0.0018,444.710% Memorial Fund0.000.000% Total Revenues $59,033,969.85$25,841,625.62 44% *does not include beginning balances 7 All Expenditures Expenditures remain below the estimate for 2024 except for the Fleet and IT replacement funds. This is due to machinery & equipment purchases for Fleet and replacement computer purchases for IT. City of Port Townsend 2nd Quarter Financial Report ~ 2024 Expenditures Year - to - Date thru June Fund Types2024 BudgetedYTD Expenditures% Spent General Fund15,915,176.907,831,822.6449% Drug Enforcement0.000.000% Contingency Fund0.000.000% ARPA860,807.00182,185.0421% Street Operations Fund1,584,880.43748,852.4647% Transportation Benefit Fund0.000.000% Library Fund1,246,433.43613,774.7949% Real Estate Excise Tax Fund704,700.00331,033.2047% PW Admin Fund0.000.000% Lodging Tax Fund530,117.00149,827.5228% Fire and EMS Fund0.000.000% Affordable Housing Fund92,896.0030,948.0033% Community Dev Block Grants20,000.000.000% Community Services Fund2,680,659.551,229,310.7846% G.O. Debt Service Fund1,068,180.11276,929.4026% General CIP Projects639,658.00314,668.0749% Street Vacation Proceeds0.000.000% Street CIP Fund5,445,488.002,601,005.5848% 2015 GO Bonds0.000.000% 2017 GO Bond74,000.0050,309.3468% 2018 GO Bonds0.000.000% 2020 GO Bond0.000.000% Water Sewer Fund11,303,486.144,706,014.3642% Storm Operations Fund1,765,900.92839,259.0848% Storm Capital Fund608,665.0036,303.266% Water Sewer CIP7,328,389.00545,216.027% 1956 Transmission Line Fund2,065,745.00369,088.5618% 2020 Water Revenue Bond0.000.000% Golf Course Fund21,000.003,648.1717% Water/Sewer Debt Reserve Fund1,668,518.81644,368.5639% System Development Charge605,906.00247,165.3841% Fleet Replacement Fund535,000.00484,613.8191% Fleet Operating & Maint. Fund1,516,058.01674,808.4445% IT Operating & Maint. Fund420,685.00195,856.0347% IT Replacement Fund33,350.0027,445.1282% Public Works Admininstration867,553.51217,666.2325% Engineering Services1,195,864.44540,247.3845% Unemployment Self-Insurance25,000.007,058.4328% Refundable Deposits0.000.000% Firemen's Pension Fund26,360.004,236.9916% Golf Course Fund0.000.000% Custodial Fund0.0057,933.180% Refundable Surety Deposits0.0013,850.390% Memorial Fund0.000.000% Total Expenditures $60,850,478.25$23,975,446.2139.4% 8 Wages and Benefits Below is a comparison of the total staff labor related costs (wages and benefits) for 2019 through 2025. 2024 is calculated from the initial budget and the 2025 data is based on initial projections. th The second table on page 12 shows the actual payroll expenses as of June 30which is almost 8% ($355K) under budget. This is due to staffing shortages. SalariesandBenefits $16,000,000 $14,636,939 $14,445,544 $14,000,000 $12,000,000 $11,369,923 $11,102,784 $10,137,815 $10,000,000$10,053,980 $9,554,724 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 2019202020212022202320242025 9 City of Port Townsend 2nd Quarter Financial Report ~ 2024 Payroll Expenditures Year - to - Date thru June FundDept2024 BudgetedYTD ExpendituresVariance% Spent 010011120,640.0035,774.83-84,865.1729.65% 010012264,863.00138,628.36-126,234.6452.34% 010013312,247.00136,604.97-175,642.0343.75% 01001474,999.0037,214.62-37,784.3849.62% 010015344,321.00159,167.47-185,153.5346.23% 0100221,296,421.00590,204.27-706,216.7345.53% 010041644,768.00205,851.77-438,916.2331.93% 010051868,417.00369,546.42-498,870.5842.55% 0100542,419,894.00948,773.83-1,471,120.1739.21% 010080300,834.00149,827.37-151,006.6349.80% General Fund $6,647,404.00$2,771,593.91-$3,790,944.92 41.69% 110111286,828.00104,665.73-182,162.2736.49% Streets $286,828.00$104,665.73-$182,162.27 36.49% 120120731,752.00348,770.29-382,981.7147.66% Library $731,752.00$348,770.29-$382,981.71 47.66% 15015075,199.0037,214.96-37,984.0449.49% Lodging $75,199.00$37,214.96-$37,984.04 49.49% 199091569,674.00208,603.92-361,070.0836.62% 199132558,869.00206,909.19-351,959.8137.02% 1991340.0077,181.5777,181.570.00% 1991400.000.000.000.00% Community Services $1,128,543.00$492,694.68-$635,848.32 43.66% 411042543,205.00260,150.56-283,054.4447.89% 411403616,928.00307,322.01-309,605.9949.81% 411404555,452.00224,925.54-330,526.4640.49% 411405665,905.00200,933.44-464,971.5630.17% 411406312,328.00133,626.16-178,701.8442.78% 411407364,909.00165,429.15-199,479.8545.33% Water Sewer $3,058,727.00$1,292,386.86-$1,766,340.14 42.25% 412501461,731.00182,424.60-279,306.4039.51% Storm $461,731.00$182,424.60-$279,306.40 39.51% 510600254,597.00128,373.29-126,223.7150.42% Fleet Operating & Maint $254,597.00$128,373.29-$126,223.71 50.42% 520601242,156.00118,781.21-123,374.7949.05% IT Operating & Maint $242,156.00$118,781.21-$123,374.79 49.05% 540401520,643.00149,316.07-371,326.9328.68% Public Works Admin $520,643.00$149,316.07-$371,326.93 28.68% 555402987,964.00445,206.21-542,757.7945.06% Engineering Services $987,964.00$445,206.21-$542,757.79 45.06% 59500025,000.007,058.43-17,941.5728.23% Unemployment Self-Ins $25,000.00$7,058.43-$17,941.57 28.23% 61070025,000.003,557.01-21,442.9914.23% Firemen's Pension $25,000.00$3,557.01-$21,442.99 14.23% Total Expenditures $14,445,544.00$6,082,043.25-$8,363,500.7542.10% Budget Remaining$8,363,500.75$355,056,556.75 10 Debt and Investments The table below lists all of the City of Port Townsend’s investments. The city’s investment portfolio has been modified in 2023 and 2024 to build a strong “ladder” to ensure necessary funding for capital projects cash flow challenges while also maximizing investment interest revenue opportunities. City of Port Townsend 2nd Quarter Financial Report ~ 2024 Portfolio Diversification Instrument TypeBankInterest RatePercentageAmount 01 - US Treasury Note X3943US Bank2.625% 1.74%499,645.50 02 - Federal Farm Credit X6366US Bank0.430% 1.74%500,000.00 US Bank5.125% 03 - Federal Home Loan X93951.75%502,000.00 US Bank4.875% 04 - Federal Home Loan X18183.49%1,001,282.00 US Bank4.750% 05 - Federal Home Loan X01233.48%998,610.00 06 - Federal Farm Credit X1093US Bank4.750% 1.76%503,305.00 07 - Federal National Mortgage X2323US Bank1.875% 3.28%939,566.00 08 - Federal Home Loan X0562US Bank3.000% 2.27%649,530.90 09 - Federal Farm Credit X1819US Bank4.375% 3.48%998,475.00 10 - Federal Farm Credit X2324US Bank4.500% 3.50%1,002,502.00 11 - Federal Farm Credit X0139US Bank4.750% 3.54%1,015,358.00 3.350% 12 - Public Money Market X6818Kitsap17.66%5,060,845.61 4.640% 13 - Certificate of Deposit X4128Kitsap7.15%2,047,695.88 3.920% 14 - Certificate of Deposit X5028Kitsap7.24%2,073,484.94 5.429% 15 - State Investment Pool X01790LGIP37.92%10,866,481.64 Total Investments100%$28,658,782.47 Cash in BankAmount 01 - Demand Account X2611 7,719,656.04 02 - Travel Advance Account X51110.00 03 - Payroll Account X34110.00 04 - Escrow Account X791126.07 05 - Petty Cash0.00 06 - US Bank Safekeeping Account X4581117,180.11 Net Cash in Bank$7,836,862.22 Total$36,495,644.69 11 The tables below show total debt and the debt payments for 2024. City of Port Townsend 2nd Quarter Financial Report ~ 2024 City of Port Townsend Debt Schedule - Balances thru December Final StartPayment TotalCurrent DateDateTotal PrincipalInterestDebt ServiceBalance LTGO Ref 2012 (PORTOWGORE12)12/1/201512/1/2023585,000.006,768.13591,768.130.00 LTGO 2017B (2008 Refi) - Taxable Bond 12/1/201512/1/20231,060,000.008,896.211,068,896.210.00 LTGO and Ref 2017A (BQ) 2008 Refi - Non Taxable Bond 12/1/201712/1/20350.00365,900.00365,900.009,155,000.00 LTGO and Ref Bond 2020 2010 Refi 12/1/201012/1/2040305,800.0048,517.94354,317.942,747,200.00 UTGO 2015 Bonds Mountain View Improvements 12/1/201512/1/2031210,000.0089,400.00299,400.002,025,000.00 LTGO 2018 Homeward Bound Debt Svs.12/1/201812/1/204029,464.5832,431.8261,896.40723,381.26 Water and Sewer Revenue Bond 2020 12/1/202012/1/204084,300.0034,602.54118,902.541,667,000.00 Total2,274,564.58586,516.642,861,081.2216,317,581.26 City of Port Townsend 2nd Quarter Financial Report ~ 2024 City of Port Townsend Debt Schedule - Payments thru December 202320242025202620272028203320382040 LTGO and Ref 2012 591,768.13 LTGO 2017B (2008 Refi)1,068,896.21 LTGO and Ref 2017A 365,900.00365,900.00395,900.00965,000.00966,000.00966,000.005,886,000.001,320,800.00 LTGO and Ref Bond 2020 354,317.94352,262.42354,714.58356,540.38352,538.24353,077.28875,687.78221,451.88110,716.36 UTGO 2015 Bonds 299,400.00301,000.00302,200.00303,000.00298,400.00298,600.00902,800.00 LTGO 2018 61,896.4061,896.3861,896.3861,896.3861,896.4061,896.38309,481.91247,585.5592,811.64 Water & Sewer Revenue Bond 2020 118,902.54118,942.68118,879.92118,912.28118,908.92118,874.08594,455.40594,708.62237,830.56 2,861,081.221,200,001.481,233,590.881,805,349.041,797,743.561,798,447.748,568,425.092,384,546.05441,358.56 Debt Schedule YTD 6,000,000 5,750,000 5,500,000 5,250,000 5,000,000 4,750,000 4,500,000 4,250,000 4,000,000 3,750,000 3,500,000 3,250,000 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 - 202320242025202620272028203320382040 LTGO and Ref 2012LTGO 2017B (2008 Refi)LTGO and Ref 2017ALTGO and Ref Bond 2020UTGO 2015 BondsLTGO 2018Water & Sewer Revenue Bond 2020 12 Agenda Bill AB24-165 Meeting Date: November 18, 2024 Agenda Item:X.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams, Finance Director Date Submitted: November 18, 2024 Department:Finance& Technology Services Contact Phone:360-379-4403 SUBJECT: 2025 City Manager Proposed Budget CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: The 2025 budget has been developed with a continued emphasis on financial sustainability and the key priorities outlined during the City Council Retreat on July 22, 2023. These priorities align with the five focus areas identified by both staff and Council. A more detailed review process was undertaken to establish the 2025 revenue projections, ensuring a cautious and prudent approach to budgeting. As a result of updated information, the Real Estate Excise Tax (REET) projection has been revised to $650,000, down from the initial estimate of $661,500 presented at the October 14 Council revenue workshop. Additionally, the Business and Occupation (B&O) tax forecast has been adjusted to $918,000, reduced from the earlier projection of $1,171,047. The Transportation Benefit District (TBD) is expected to generate $1,200,000, which will significantly support the funding of planned capital projects in 2025. Investing in Our Workforce Staffing remains a central focus in the proposed 2025 budget. The budget includes the creation of five new positions: a Community Services Director (replacing the current Library Director), an Arts and Culture Coordinator, a Water Maintenance Worker, a Streets Operator, and a Parks Maintenance Worker. The proposed budget maintains current salary levels for both represented, except for police,and non-represented employees. The Teamsters Collective Bargaining Agreement expires on December 31, 2024, and negotiations are currently ongoing. A budget amendment reflecting any negotiated changes will be presented to the Council in 2025 for review and adoption. Additionally, one-time funding has been allocated for continued staff development, training, and appreciation programs. Departmental synergy. The budget includes a change in how the City organizes some of our important community services: a combined Community Services Department that incorporates Parks and Facilities teams, the Library department, and adds an arts and culture component to oversee the PT Creative District. The aim is for better, more integrated, more stable delivery of these services to our community alongside a fiscally prudent way of doing so. Managing Debt and Financial Resilience While we successfully accelerated debt repayment last year, certain debt obligations will reemerge in 2026. To proactively manage these future payments, the 2025 budget allocates funds in anticipation of these costs. These funds will be invested this year, leveraging the current high interest rates until they are required for debt repayment in the future. Policy Considerations As part of the budget process, two financial policy revisions will be brought forward for Council consideration and adoption alongside the 2025 budget. A key proposed policy is the establishment of a Vacancy Rate Policy, which will enable the allocation of savings from staff vacancies into a “Rainy Day” fund. The addition of the rainy-day component to the existing contingency fund will allow us to expand our reserves for future economic downturns or during times of natural disaster. This fund will be dedicated to supporting employee retention initiatives, such as staff appreciation and training programs, and will help maintain staffing levels during these economic downturns. Infrastructure Investments The budget includes continued investment in over $45 million worth of funded infrastructure projects. These projects, which include water, sewer, stormwater, and park improvements, will address years of deferred maintenance and are critical to ensuring the long-term sustainability of the city’s infrastructure. This budget reflects our ongoing commitment to fiscal responsibility, efficient service delivery, and the long-term well-being of our community. Upcoming discussion opportunities: December 2 – Public Hearing on 2025 budget adoption. ATTACHMENTS: 1. Ordinance 3343 2. 2025 City Manager Proposed Budget 3. Presentation CITY COUNCIL COMMITTEE RECOMMENDATION: RECOMMENDED ACTION:Move to approve first reading of Ordinance 3343 Adopting the Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2025 ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Ordinance 3343 Page 1 of 2 ORDINANCE NO.3343 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2025 WHEREAS, the City Manager of the City of Port Townsend, Washington, completed and placed on file with the City Clerk a proposed budget and estimate of the amount of monies required to meet the public expenses, bond retirement and interest, reserve funds and expenses of government of the City for the fiscal year ending December 31, 2025 (the “2025 Preliminary Budget”), and a notice was published that the City Council would conduct a public hearing on th the 18of November 2024at 6:00 p.m., at City Hall for the purpose of receiving public testimony regarding the preliminary budget for the 2025 fiscal year; and WHEREAS, the City Council held a public hearing on November 18, 2024, at which all taxpayers were heard who appeared for or against any part of the preliminary budget; and WHEREAS, following the public hearing, the City Council met in City Council Chambers on December 2, 2024, to consider the 2025 Final Budget and receive further public comment, and made adoptions and changes, as it deemed necessary and proper; and WHEREAS, the 2025 Budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City of Port Townsend for the purposes set forth in the 2025 Final Budget, and the estimated expenditures in each fund set forth in the 2025 Final Budget are all necessary to carry on the government of the City for fiscal year 2025, and are all necessary to meet the various needs of the City during the period; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1.The budget for the City of Port Townsend, Washington, for the fiscal year 2025, is hereby adopted at the fund level as set forth in the document entitled “City of Port Townsend Final Budget 2025,” a copy of which has been and now is on file with the office of the City Clerk, and by this reference is incorporated into this Ordinance. Section 2. Estimated revenues, including fund balances for working capital for each separate fund of the City of Port Townsend, and aggregate totals for all such funds combined, for the year 2025, are set forth in summary form in Exhibit A attached, and by this reference are incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the 2025budget year. Section 3.The City Clerk is directed to transmit a certified copy of the City of Port Townsend Final Budget 2025 to the Office of State Auditor and to the Association of Washington Cities. Ordinance 3343 Page 2 of 2 Section 4. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular nd meeting thereof, held this 2 day of December 2024. _____________________________ David J. Faber Mayor Attest: _____________________________ Alyssa Rodrigues City Clerk City of Port Townsend Library Fund Budget Detail and Summary Goal Statement: The City ission is: Uplifting our community through reading, learning, connection, and creativity. Main areas of work: Books and material circulation, databases, e-books and e- web resources, interlibrary loan Programs and events, including youth, teen, and adult programming. Staff response to patron requests and associated services Building strong relationships with community partners to deliver strong social and emotional infrastructure to the community. Access to technology Access to services, collections, and spaces with diversity, equity, and inclusion being paramount to library work https://ptpubliclibrary.org/sites/default/files/fileattachments/library/page/7905/ptpl_strate gic_plan_2021-25_updated_for_2024_.pdf 2025 Key Goals: We will use our Core Services, partnerships, assets, and resources to continue to advance four Strategic Initiatives designed to help us be the best possible library for the Port Townsend community: o Increase equitable access to library offerings to serve all Port Townsend residents and visitors according to their needs, interests, and abilities. o Build community as a trusted convener and connector, both within and beyond library walls. o Help our Port Townsend community learn, do, create, and share. o Make efficient and effective use of local and regional resources. 2025 Work Plan: Library Capital Projects: Pink House exterior restoration Help further produce "How Your City Works" programs and materials. Work through issues with financial sustainability, including options analysis on balancing revenues and levels of service. City of Port Townsend Street Operations Fund Budget Detail and Summary Street Operations Goal Statement: The City of Port Townsend Streets and Collections Division of Public Works has the primary responsibility of maintaining city streets, the wastewater collections system, and the stormwater collection system. Maintenance includes street repair, vegetation control, garbage management, special projects in right of way, event support, sidewalk repairs, annual cleaning of sewer and stormwater pipes, catch basin and maintenance holes maintenance, sweeping, and snow plowing. 2025 Key Goal: A primary goal of this division is to continue to increase investment on drainage and street repairs. This will involve drainage control work and moving to hot mix asphalt patching compared to cold mix pothole repairs. This transition was successful in 2023 with investment of banked capacity (property tax) into a number of City streets that have fallen into disrepair. . Another primary goal is to implement the General Sewer Plan with methodic inspection and to begin to rehabilitate the aging sewer collection system. 2025Work Plan: The division will continue complete the 2022 and 2023 banked capacity road restoration projects.. Implement the Comprehensive Streets Program through investment of new revenue associated with the Transportation Benefit District. Perform annual hot spot pavement repairs. Support an arterial street chip seal preservation project. Support overlay of Tyler Street Begin systematic sewer inspection program with new video camera documentation equipment.. The street division works closely with the engineering division to implement a number of projects throughout the year. Please refer to the engineering writeup for more details. Continue to implement a newly developed city-wide ditch maintenance program. This program strives to correct drainage deficiencies ahead of paving project to prevent premature deterioration of pavement due to saturation of the underlying soils. +Bmm!qptjujpot-!fydfqu!qpmjdf-!sfnbjo!uif!tbnf!bt!uif!3135!Tbmbsz!Tdifevmf!voujm!vojpo ofhpujbujpot!bsf!dpnqmfuf/!B!ofx!tbmbsz!tdifevmf!xjmm!cf!qsftfoufe!up!dpvodjm!jo!3136/! ---- 78000029000633 20000094000779 38000042000863 ,,,,,,,,,,,,,, 73050944000307 34375763133881 4412613556 ,,, l 222 a t o T ------------- 00 00 99 ,, 77 84 155,000 232,900 547,900 35 e r u t u F ----- 94 91 60 ,, 02 30,00095,00060,00069,24930,00030,00018,360 32 5 270,000175,000261,450310,000 33 ,, 2 1,303,654 11 0 2 ---------- 79 77 24 ,, 57 19,00065,00018,360 64 167,327443,808170,142729,119 8 7 4 2 0 2 ll aa tt j oo o d r T T n P v p u e x F P I E R s P C I e . g l t c C d i n a s n s i t r i n v n s n r ea e u o u oe e n i F i ) r stM to S de t y r a e a x r n H r GSe r y c r a&s t ue r e i e rr we e T l Fps u r p n he oo s ff b lp o gu cO u O S t a e a ( i n S O ss t r i r s d mtt d mt e eT rdd g e g a nn n r n t Ce e m nE onn d aa n p e rfao e e i eorr rtEftD oo ol p p d Gvoe!412!Hfofsbm!Hpwfsonfou!DJQ GASRLACGGBBWSSF x x n E E u FG/F OH and Misc d n 030500915051250 a 101358900551191 t 011111133334445 s n e e u m n G n e G r v e e e e v us R o nn e G e d 1 v p l e 0 t e x a c 3 r RE e e ll j d aa n ttn o e r oou PG TTF ------------------- 7,000 6,421 7,000 26,69536,46119,60749,85910,533 500,000162,951115,000804,646475,107151,557 756,544 Total Expenditures Total Revenues - - Future YearsFuture Years - 3,703 115,000115,000106,557 110,260 2025 Budget2025 Budget - - 22,39545,000 67,395 Year EndYear End 2024 Estimate 2024 Estimate 80,00080,000 252,000252,000584,000100,000504,000 684,000 2024 Budget 2024 Budget - 368 6,597 15,430 22,395 2024 Actual 2024 Actual 7,000 6,421 3,297 26,69536,46119,60749,85910,533 500,000162,951696,646452,712 578,889 Revenues Prior Year Prior Year Expenditures ----- ---- 7,0006,069 7,000 36,49141,32649,85997,25410,53317,533 500,000162,951115,000475,107151,557 1,372,0001,372,0002,035,155 9/24 2,149,9512,149,942 Revised Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 7,000 43,50043,50025,00075,000 507,000100,000150,000500,000504,000546,000150,000157,000 1,372,0002,500,0001,700,0001,372,0002,419,5003,150,0003,796,000 6,372,5006,372,500 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ project. See separate estimates for Mill Road Lift Station Sewer (EPA) Sewer SubtotalSubtotalSubtotal SDC (Fund 495) CleanupMowingGarbageConstruction engineeringNot eligible - Grants and Utilities is received for the acquisition of property. In the 2025 budget, the Mill Road Lift Station has been moved to a sewer capital funding is directed to create land available for affordable housing through acquisition of property and the construction of sewer The City received two grants for affordable housing in 2021. An additional Federal Grant is anticipated in late 2021 as well. The infrastructure to support full development of the land. An interfund loan will provide cashflow until reimbursement from the State State Affordable Housing GrantCity Funds Affordable Housing fundsJefferson County ARPA City General Funds (Abatement and Mowing)City General Funds Transfer In 2025Federal Grant for State Utility Grant (CHIP) for SewerJefferson County Health Land Purchase / Permitting / Design Land PurchasePlanning and PermittingCultural resourcesMill Road Lift StationMarketing Construction Sewer Lift Station and Force main Project Management/Design Engineering Miscelaneous Project Contingency Eligible for 1% for the Arts 141441146 RevenueTotal RevenueExpenseTotal Expense Affordable Housing Project Description AAASBBVVCXYD -------------------------- 1,414 8,702 150,000150,000139,884 150,000 Total Revenues Total Expenditures - - Future Years Future Years 1,249 69,24969,24950,993 52,242 2025 Budget2025 Budget 2,000 65,00065,00063,000 65,000 Year EndYear End 2024 Estimate 2024 Estimate 4,000 74,00074,00065,641 69,641 2024 Budget2024 Budget 2,244 1,025 50,30950,30946,920 50,189 2024 Actual2024 Actual 1,414 5,453 15,75115,75125,891 32,758 Revenues Prior Year Prior Year Expenditures - 5,000 5,000 150,000145,000145,000 150,000150,000 Project Budget $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Bond fund - not eligible Design Engineering / PermittingConstruction The City is in the process of reconciling the Cherry Street housing project that did not pencil out. This project involves generally preparing the property for disposition.Bond FundsProfessional Serv.KD&SDemoFence RentalMisc Project Management Engineering Serv Project Contingency Eligible for 1% for the Arts RevenueTotal RevenueExpenseTotal Expense Cherry St. Property Disposition Project Description 3AAAAABBBBBCCCCD ----------------------- 70,00010,13190,00030,00010,13130,00010,000 530,000730,131680,000 730,131 Total Revenues Total Expenditures - - Future Budget Future Budget - - 2025 Budget2025 Budget - 3,442 70,00090,00030,00030,000 151,313341,313367,532 400,974 Year EndYear End 2024 Estimate 2024 Estimate - 85,50090,000 175,500 2024 Budget2024 Budget 0 2,078 103,971103,971222,737 224,815 2024 Actual2024 Actual 6,558 10,13110,131 378,687388,818312,468 329,157 Revenues Prior Year Prior Year Expenditures - 70,00010,13190,00030,00010,13130,00010,00010,000 400,000130,000680,000720,131 730,131730,131 Budget 2024 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Revised Project - 10,13190,00010,13110,00010,000 400,000130,000120,500400,000410,131 750,631420,131 Budget 9/23 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ - 10,13150,00050,000 400,000 130,000 350,000 350,000 540,131400,000 Project Budget $ $ $ $ $ $ $ $ $ $ General GovernmentN/A SubtotalSubtotalSubtotal Grant Design Engineering / PermittingConstruction City Hall underwent a remodel in 2007 and left many parts of the project incomplete. In 2021 a front counter was added to the lobby. After space planning in 2022, a continued phased approach to upgrading the City Hall office spaces on floors 2R and 3 were recommended. These floors were never completed in the earlier remodels of City Hall. The work proposed includes sound control, HVAC, carpet replacement, furniture, and conference room development. In addition to the office space modifications, ARPA funding provided for Council upgrade of badly outdated electronics associated with audio and visual equipment.ARPA Phase 2 and CarpetsARPA Phase 1Council Chambers (ARPA)Jefferson Co. Historical SocietyARPA - Second FloorARPA - First Floor CarpetCity Hall Phase IICity Hall Phase ICity Hall Phase III (2nd floor conference room)PermitCity Hall Phase I, II, III, ChambersJefferson Co. Hist. SocietyFirst Floor Carpet Project ManagementProject Contingency Eligible for 1% for the Arts 111111 City Hall Upgrades Phase 2 & Council Chambers Audio Visual Updates Project Description RevenueTotal RevenueExpenseTotal Expense ------------------------- 16,75015,00067,50032,000 349,350349,350218,100 349,350 Total Expenditures Total Revenues 11,16710,00045,00021,333 232,900232,900145,400 232,900 Future YearsFuture Years - 5,583 5,000 22,50072,70010,667 116,450116,450 116,450 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures - - 16,75015,00067,50099,25032,000 32,000 349,350218,100 218,100 349,350349,350 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Tree PlantingAdminConsultants Design Engineering / PermittingConstruction / Supplies Sather park and Bishop Canyon Grant. This project aims to remove invasive species from Bishop park (passive) and planting of new trees in both Sather Park and Bishop Park over the next three years. Grant will be managed by the Parks Department. Washington State DNR Community Forestry Assistance GrantCommunity EngagementTree InventoryConsultant Assistance Project ManagementProject Contingency Eligible for 1% for the Arts Grant 301 1 USDA USF Project DescriptionRevenueTotal RevenueExpense AAAABBBBBCCCCD Total Expense ---------------------- 2,500 75,00017,500 250,000250,000500,000100,000305,000 500,000 Total Expenditures Total Revenues 7,500 2,500 155,000160,000305,000 315,000 315,000 Future Years Future Years 95,00090,00075,00010,000 185,000100,000 185,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 2,500 75,00017,50017,500 250,000250,000100,000175,000305,000305,000 500,000500,000 benefits for public restrooms. Project Budget $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Additional public restrooms downtown have been discussed for a number of years. In particular, a restroom facility toward the Ferry Terminal resources. The sewer fund is able to contribute to restrooms to support public health and sanitation, while lodging tax recognizes the tourism would nicely compliment the existing Cotton Building Restrooms. Funding of restrooms is a shared between Lodging Tax dollars and Sewer Fund Design Engineering / PermittingConstruction Lodging TaxSewer OperatingArchitecturalProperty PurchaseConstruction Project Management Staff Admin Project Contingency Eligible for 1% for the Arts 44 RevenueTotal RevenueExpenseTotal Expense New Restroom Downtown Project Description --------------------------- 171 40,00012,15075,00052,06875,000 127,150 127,239 Total Expenditures Total Revenues ---- - Future YearsFuture Years 75,00075,00075,000 75,000 2025 Budget2025 Budget 12,15012,15022,967 22,967 Year EndYear End 2024 Estimate 2024 Estimate - 40,00012,15052,150 2024 Budget 2024 Budget - 22,967 22,967 to date to date 2024 Actual year 2024 Actual year 171 40,00040,00029,101 29,272 Revenues Prior Year Prior Year Expenditures -- 171171 40,00012,15075,00052,06975,000 127,069 127,150127,240 Budget 9/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ 5,000 5,000 40,00090,00035,00010,00010,00060,00090,000 150,000 165,000165,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Repair work and grants Design Engineering / PermittingConstruction The existing Kah Tai restrooms were originally constructed with grant funding from RCO. The restrooms have fallen into disrepair and have suffered severe vandalism over the years. As a result, the restrooms have been closed for a number of years. The City desires to re-open the restrooms and establish an RV caretaker site to minimize the effects of vandalism. Staff is applying for RCO grants to rehabilitate the restrooms.2023 Banked CapacityARPARCO Grant (Unsecured) - No match requiredGeneral Fund Transfer InPlumbing PermitDemo PermitPhase 1 - care taker sitePhase III (restroom repairs)Project ManagementProject Contingency Eligible for 1% for the Arts 4111 RevenueTotal RevenueExpenseTotal Expense Kah Tai Restrooms and Care Taker Facility Project Description AAAAABBBBBCCCCD 0 -------------------- - - 715106 2,023 76,98779,14280,00080,00079,09879,186 316,129 155,000 316,128 Total Expenditures Total Revenues - - Future YearsFuture Years -- 2,023 80,00080,000 160,000 155,000 157,023 2025 Budget2025 Budget 518 76,98779,14279,09822,911 156,129 102,527 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget -- 518 76,98779,14279,09822,911 156,128 102,527 2024 Actual2024 Actual - 197106 56,275 56,578 Revenues Prior Year Prior Year Expenditures ` ---- 715106 2,0232,844 76,98779,14280,00080,00079,09879,186 155,000 313,284 316,128316,128 Budget 9/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 7,0005,0005,000 62,20933,00079,09795,20910,000 25,000 100,000 167,810 174,306 370,019184,306 Budget 9/23 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 7,7912,5002,5005,000 62,20933,00030,500 100,000167,810167,500198,000 370,810203,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ N/A funds. This project also rehabilitates the outdated bathrooms. Windows Windows Windows WindowsRestrooms SubtotalSubtotalSubtotal Repair work and partial grant The 1989 addition to the Port Townsend Library has windows with frames that are beginning to rot due to moisture intrusion and window failure. This project replaces the windows for this portion of the library. The source of funds for this project are bond revenues as well as American Rescue Plan Act Bond Fund - Real Estate Excise Tax - Federal Grant (ARPA) - DOC (added in 2024) - Bond Fund - DOC Phase II GrantGeneral Fund Transfer In Design Engineering / PermittingConstruction WindowsRestroomsPh ase II remaining grant Project Management WindowsRestroomsPhase II remaining grant Project Contingency Eligible for 1% for the Arts 3411311 RevenueTotal RevenueExpenseTotal Expense Library Windows & Restrooms Project Description AAAAABBBBCCCD -------------------- 106426 3,0003,000 52,33429,969 191,000127,327318,327161,165 249,999 Total Expenditures Total Revenues - - Future YearsFuture Years --- 2,1461,114 130,919 134,179 2025 Budget2025 Budget 1,500 91,00020,000 21,500 127,327 218,327 Year EndYear End 2024 Estimate 2024 Estimate -- 614500 (2,019) 11,485 135,000 145,580 2024 Budget2024 Budget -- 714 714 to date 2024 Actual 2024 Actual year 854386106426 10,24652,33429,969 94,320 100,000100,000 Revenues Prior Year Prior Year Expenditures 106426 3,0003,0003,0003,532 52,33429,96950,00052,33429,969 117,697161,165 243,468 250,000250,000 Budget 9/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ - 500 2,0001,000 3,500 61,00030,00050,00059,00028,500 100,000 150,000 237,500 241,000241,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal YźƷĭŷĻƓ {ŷĻƌƷĻƩYźƚƭƉƭ {źŭƓƭ.źƭŷƚƦ tƌğǤŭƩƚǒƓķ Kitchen ShelterKiosks SignsBishop PlaygroundKitchen ShelterKiosks SignsBishop PlaygroundBank Capacity Agreement does not allow for art contribution The City Council allocated funding to several parks project as part of the 2022 Banked Capacity (property tax). The projects include reconstruction of the Kitchen Shelter at Chetzemoka Park, installation of Kiosks at the City Parks and install trail signs identifying the right of way, and installation of a new swing set at Bishop Park.Banked CapacityDonations - Kitchen Shelter Design Engineering / Permitting bishop permit Construction Project ManagementProject Contingency Eligible for 1% for the Arts 44446 RevenueTotal RevenueExpenseTotal Expense Parks 22 Banked Capacity Project Description AAAABBBBBCCCCD ----------------------- 5,1773,8333,3982,000 13,35865,00018,97150,000 175,000262,368188,000 262,368 Total Expenditures Total Revenues - - Future YearsFuture Years 1,500 65,00050,000 175,000240,000188,000 239,500 2025 Budget2025 Budget -- 500 13,35813,35813,256 13,756 Year EndYear End 2024 Estimate 2024 Estimate (182) 7,4891,500 95,30795,30786,500 95,307 2024 Budget2024 Budget 1,228 1,228 2,949 2,697 1,228 6,874 to date 2024 Actual 2024 Actual year 5,1773,8339,0105,7153,398 9,112 Revenues Prior Year Prior Year Expenditures - 2,0002,000 22,36865,00022,36822,36850,000 175,000188,000238,000 262,368262,368 9/24 Revised Budget $ $ $ $ $ $ $ $ $ $ $ $ $ 1,5001,500 40,00012,00012,00086,50040,000 100,000126,500 140,000140,000 9/23 Revised Budget $ $ $ $ $ $ $ $ $ $ $ 35,00035,00020,00020,000 100,000 205,000 250,000 250,000 305,000 305,000 Project Budget $ $ $ $ $ $ $ $ $ $ N/A Pink HousePink House Pope Marine Permit Pope Marine costs and will be making repairs to the degree that funding is available. This budget transfers revenues from ARPA to REET. SubtotalSubtotal Pink House Pope MarineRepair work and grant funding The Charles Pink House and Pope Marine buildings are suffering severe exterior deterioration in the siding and trim. The City has evaluated the repair ARPA (Initial Allocation) (103-)Friends of Library BondFuture GrantGeneral Fund Transfer InReal Estate Excise Tax Design Engineering / Permitting Terrapin Contract $12,000 Construction Pink HousePope MarineMiscelaneous Pink HouseMiscelaneous Pope Marine Project Management Enigeering AdministrationSubtotal Project Contingency Eligible for 1% for the Arts 11163144 Pink House & Pope Marine RevenueTotal RevenueExpenseTotal Expense -------------------- 30,00030,00030,00030,00030,00030,00030,00010,000 210,000200,000 210,000 Total Expenditures Total Revenues - - Future Years Future Years 30,00030,00030,00030,00030,00030,00030,00010,000 210,000200,000 210,000 2025 Budget2025 Budget $ - - 2024 2024 Estimate Estimate Year EndYear End - - 2024 2024 BudgetBudget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures - 30,00030,00030,00030,00030,00030,00030,00010,00010,000 200,000 200,000 210,000210,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ 411-403411-405412-110510199-091199-132N/A - design study project will be split between the seven departments that will operate out of this facility. SubtotalSubtotalSubtotal The existing PW shops located on Beach St. houses our Public Works Department/ Fleet Department/ Storm and Water distribution crews. This site consists of older portable units that have reached their useful life expectancy and is undersized for such a large crew. This first step in this project will be to hire a consultant to develop a schematic design towards building a new Muncipal Service Center adjacent to our Water Quality site. Funds for this Water DistributionWW CollectionsStormStreetsFleetFacilitiesParks Design Engineering / Permitting Schematic Design Consultant Construction Project Management Staff support and management Project Contingency Eligible for 1% for the Arts Public Works Shops Project Description Revenue 4444444 Total RevenueExpenseTotal Expense ------------------------- 400 5,0001,0001,600 40,00019,00059,00022,00029,000 59,000 Total Expenditures Total Revenues - - Future Years Future Years -- 400 1,600 22,000 24,000 2025 Budget2025 Budget 5,0001,000 40,00019,00059,00029,000 35,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 2024 BudgetBudget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 400 5,0001,0006,0001,6001,600 40,00019,00022,00029,00051,000 59,00059,000 Project Revised $ $ $ $ $ $ $ $ $ $ $ $ $ Budget 9/24 - - - Project Budget $ $ $ Yes Port Townsend. SubtotalSubtotal For city funds only In 2024 with the recommendation from PRTTAB and HPC City Council approved the the amount in the amount of $19k from local community members. Lighting of the skate installation of the Skate Park with solar lighting. Council accepted a gofund me donation in park is referenced in the PROS Plan as a need for more night time acitvities for the youth of General Fund Transfer InParks Donation Design Engineering / Permitting Schematic Design and engineeringPermit Construction InstallationMaterials - solar lights Project Management engineering services Project Contingency Eligible for 1% for the Arts 46 RevenueTotal RevenueExpenseTotal Expense Skate Park Lighting Project Project Description 50707070593 50919090574 10873030525 ,,,,,,,,,,, 27401005134 6876206752 2026452578 ,,,,, l 17011 a t 111 o T ------- 00 00 00 ,, 00 50,00015,000 33 765,000 830,000 88 e r u t u F --- 48 28 84 ,, 2,019 01 92,35534,978 57 5 521,000206,342500,000 39 ,, 2 2,029,1083,936,510 33 0 2 - 15 35 70 ,, 2,981 03 36,286 92 100,000262,155516,000167,542215,055260,397 30 4 ,, 4,866,6026,986,769 67 2 0 2 ll aa tt oo T T s v p t e x e E R e Gvoe!416!Tusffut!DJQ r t S s s r n n o f o o i i st t s a e a n r r c s a e r ep n e i o pa u r p s L o u m OC O / t e i Sd s t s t d mmA e T g a n n rr n C e E D a n p e roo e i r rtEttD W B p p d ASTRGSSSP x x n E E u FG/F OH and Misc d n 301552450 a 011301194 111134445 s e u n t e S v e e e us R nn e e d 5 v p e 0 t e x c 3 t RE e e ll j d e aa ttn o r t r oou PS TTF ----------------------- 75,00088,00050,000 763,000838,000113,000587,000 838,000 Total Expenditures Total Revenues 50,00088,00025,000 650,000587,000 700,000 700,000 Future Years Future Years 25,00025,000 113,000138,000113,000 138,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 75,00088,00050,00050,000 763,000113,000113,000587,000675,000 838,000838,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ needed in the City's Local Road Safety Plan. SubtotalSubtotalSubtotal View Campus, Golf Course, Salish Coast School as well as crosses the valley separating Castle Hill from This project is funded through the State Highway Safety Improvement Program and reflects improvements 19th Street is a main corridor fo pedestrians, bicyclists, and motorists. The corridor connects the Mountain Landes and the existing sidewalk near San Juan. It will also include traffic claming and enhanced crossings. Uptown. The existing rodaway configuration is a large open street which induces high vehicle speeds. About half of the corridor has sidewalks. This project will enahnce pedestrian safety by installing sidewalks between Design Engineering / PermittingConstruction HSIP Grant (Federal)Transportation Improvements Funded (TBD)ConsultantConstruction ContractCN Engineering Project Management Eng Interfund Project Contingency Eligible for 1% for the Arts 11 RevenueTotal RevenueExpenseTotal Expense 19th Street Safety Project Project Description -------------------------- 40,00050,00060,00032,00020,000 414,000 454,000 282,000 444,000 Total Expenditures Total Revenues - - Future Years Future Years 6,6477,298 40,00040,00060,00018,874 282,000 374,820 2025 Budget2025 Budget 5,000 25,00010,000 40,000 304,000304,000 Year EndYear End 2024 Estimate 2024 Estimate - 3,2226,0008,000 50,00030,00049,00031,00017,00038,691 275,264 508,177 2024 Budget2024 Budget ----- 4,627 12,118 16,745 to Date 2024 Actual2024 Actual 3,1267,702 18,353 29,180 110,000 110,000 Revenues Prior Year Prior Year Expenditures ------ 40,00050,00050,00060,00032,00020,00052,000 404,000 282,000 342,000 444,000444,000 10/24 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,000 75,00060,00040,00050,00050,00060,00049,00031,00032,00015,00011,00067,000 38,691 414,000 293,309 433,309 589,000589,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Banked Capacity Agreement Does not allow for art contribution Design Engineering / PermittingConstruction The City Council authorized expenditure of 2022 banked capacity (property tax) revenue for parks and streets projects. The Street projects in this budget include construction of sidewalks on 9th Street between Hancock and McPherson, ADA improvements at Mountain View on Blaine Street, ADA improvements at the intersection of Lawrence and Tyler Street, and paving of Milo Street, a portion of the Valley Trail.Banked CapacityWater SDC (495)Sewer SDC (495)Stormwater (412)Design Consultant 9th, BlaineDesign Pacific9th St, and BlainePacific Project Management 9th St, and Blaine Pacific Project Contingency Eligible for 1% for the Arts 2022 Banked Capacity - 1000.1 (Pacific Avenue), 1000.2 (9th Street Sidewalk), 1000.3 (ADA Ramps)Project Description Revenue 4444 Total RevenueExpense ABCD Total Expense --------------------------- 48,298 868,000251,970819,702107,075144,895 1,119,970 Total 1,119,970 Expenditures Total Revenues - -- - Future Years Future Years -- 57,07537,764 152,842152,842551,862113,292 759,994 2025 Budget2025 Budget 5,000 65,00065,00050,00015,000 125,000 195,000 Year EndYear End 2024 Estimate 2024 Estimate $ 62,993 125,985125,985737,800188,977130,200 1,119,970 2024 Budget2024 Budget 19,32019,32036,43811,398 47,836 datedate 2024 Actual To 2024 Actual To 5,534 34,12816,603 868,000902,128142,839 164,976 Revenues Prior Year Prior Year Expenditures - 48,298 868,000 251,970 819,702 107,075 926,777 144,895 193,193 1,119,9701,119,970 Project Budget $ $ $ $ $ $ $ $ $ $ $ StreetStormStreetStormWaterStreet (25%)Storm (75%) SubtotalSubtotalSubtotal Banked Capacity does not allow for art contribution The City proposes to invest up to 868,000 of banked capacity (property tax) into repair of streets. This project will include a number of stormwater management improvements prior to applying repair treatment to the street. Banked CapacityStormwater Design Engineering / Permitting In-house engineering Construction Project ManagementProject Contingency Eligible for 1% for the Arts 44 RevenueTotal RevenueExpenseTotal Expense 2023 Banked Capacity Street Repair Projects - 1000.4 Project Description ABCD ---------------------- 15,00015,000 170,000264,618434,618264,618140,000 434,618 Total Expenditures Total Revenues - - Future Years Future Years ------------- 15,00015,000 170,000264,618434,618264,618140,000 434,618 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures - 15,00015,00015,00015,000 170,000264,618264,618140,000404,618 434,618434,618 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction Every other year, funds from the Transportation Benefit District will go to pavement preservation in order to extend the life of the City streets. Pavement preservation usually consists of Chip Seal or Overlays along with spot repairs. 2025 will be the first year of a implementing a pavement preservation project since the beginning of the Transportation Benefit District in 2024.Transportation Improvement Funded (TBD)TIB APP Grant Application - Chip SealIn-house Engineering - TIB GrantContract - TIB GrantMatch Project Management Administration - TIB Grant Project Contingency Eligible for 1% for the Arts RevenueTotal RevenueExpenseTotal Expense 2025 Chip Seal Project Project Description 41 -------------- 2,4135,174 85,70270,07714,831 617,190363,693202,000241,202402,680678,581189,455622,873 2,709,8681,442,0826,066,8304,487,806 Total 6,068,797 Expenditures Total Revenues $ - - Future YearsFuture Years $ ------- 64,00050,00014,064 64,064 228,444292,444 2025 Budget2025 Budget $ ----- 5,174 66,24270,07714,831 262,155138,000194,155100,055189,455404,938 2,003,5151,403,6624,167,7844,101,314 4,785,789 Year EndYear End 2024 Estimate 2024 Estimate $ $ -- 8,3442,0709,460 (6,555) 68,69313,58835,634 (43,992) 100,649342,680140,537342,680 2,065,0771,367,0823,937,6263,738,122 4,246,444 2024 Budget2024 Budget $ $ 777 441 11,43994,21338,449 103,235 1,252,1281,328,1202,725,1263,979,256 4,082,932 2024 Actual 2024 Actual $ 2,413 38,42047,04719,460 477,909617,190101,538302,625678,581336,492203,871 1,606,602 1,218,944 Revenues Prior Year Prior Year Expenditures $ $ $ $ Prior Year Expenditures -- 8,2285,174 85,702 30,629 26,337 70,077 14,831 621,515363,693202,000241,202402,680613,387678,581189,455622,873642,878 2,709,8681,442,0824,487,8064,747,338 6,068,742 6,068,797 Budget 9/24 Budget 9/24 Revised Project Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - - 7,9263,593 9,460 75,831 30,792 63,588 10,769 621,515363,693234,263342,680608,387647,105190,537342,680417,498431,860 2,493,2881,442,0823,888,1224,484,927 5,573,352 5,563,892 Budget 7/23 Budget 7/23 Revised Project Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 6,242 34,216 13,217 92,877 12,833 621,515270,000240,000115,000250,000755,854803,287190,937250,000197,810216,885 2,629,6181,442,0823,322,8293,856,643 5,568,215 4,876,815 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Project BudgetProject BudgetNo SubtotalSubtotalSubtotal Grant funding not eligible and Staff Administration Design Engineering / PermittingConstruction The Discovery Road Project includes constructing a bicycle way, sidewalks, and curb ramps between the roundabout at Rainier Street and McClellan Street near Salish Coast Elementary School. The project will completely rebuild the failing pavement as well. The City received several grants to fund this large project. Discovery Road is an important arterial street connecting SR20 to Fort Worden. The City and stakeholders evaluated options for this project in the spring of 2021. City Council approved the concept design on May 17, 2021. Construction is anticipated in summer 2022.Transportation Improvement Board - State Grant (UAP)Washington State Department Of TransportationFederal Grant Funds STPLocal - Street Funds Transportation Infrastructure Funded (TBD 111)Water (495)Sewer (495)Storm (412)Misc.StreetWaterSewerMiscStreetWaterSewerStorm Project Management StreetWaterSewer Project Contingency Eligible for 1% for the Arts 111414446 Discovery Road Project Description RevenueTotal RevenueExpense ABCDD Total Expense ------------------------ 35,00050,00040,00030,15025,00010,00042,000 233,000318,000170,850 318,000 Total Expenditures Total Revenues - - Future Years Future Years 1,819 22,35550,00016,70230,15010,00042,000 210,000282,355170,850 271,521 2025 Budget2025 Budget $ 23,00010,00033,00023,00015,000 38,000 Year EndYear End 2024 Estimate 2024 Estimate 5,000 10,00022,00030,15010,000 228,000238,000170,850 238,000 2024 Budget2024 Budget 542 542 3,899 5,415 9,314 Date 7/1/24 2024 Year to 2024 Year to Date Sept 24 298 2,645 2,645 8,181 8,479 Revenues Prior Year Prior Year Expenditures - 35,00050,00040,00040,00030,15025,00010,00035,00042,000 233,000170,850201,000 318,000318,000 Budget 10/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 15,00022,00022,00030,15015,00015,00010,000 233,000170,850201,000 248,000248,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Federal HSIP funding is intended for City's to make safety improvements according to the Local Road Safety Plan. N/A REET Used for staff administration The City secured a second grant to improve the remaining portion of Discovery Road between the Salish Coast Elementary School and the Sheridan intersection. The grant also makes improvements to the intersection for pedestrian and Bicycle safety. Design Engineering / PermittingConstruction Federal Grant Funds (HSIP)Real Estate Excise TaxAdditional Federal Funds (Anticipated)Design ConsultantConstruction ContractCN Engineering Project Management Staff administration non-eligible grant costsStaff administration eligible grant costs Project Contingency Eligible for 1% for the Arts 141 Discovery Road/Sheridan/19th Street Intersection Safety Improvements Project Description RevenueTotal RevenueExpense ABBCCD Total Expense --------------------------- 459750 (440) 75,00050,75034,541 476,900551,460465,400 551,900 Total Expenditures Total Revenues - - Future Years Future Years - - 2025 Budget2025 Budget 750 74,52150,75017,043 476,900551,421465,400 533,943 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget 265 5,165 5,165 4,900 5,165 2024 Actual2024 Actual 39 479459 (440) 17,498 17,957 Revenues Prior Year Prior Year Expenditures 750 75,00050,75050,75035,00035,000 476,900465,400465,400 551,900551,900 Project Budget $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Estimate on budget for REET and not grants Design Engineering / PermittingConstruction Washington State Department Of Transportation is replacing signals at Mill Road/SR20 and Kearney/SR20 with compact roundabouts at each location. The City secured Federal Surface Transportation Block Grant funds through a competitive process administered by Jefferson County. The funds will be used to enhance the WSDOT project with improved pedestrian and bike facilities as well as work on the roundabout approaches. The project was approved by the City Council on August 16, 2021. Federal Grant Funds (STBG)Real Estate Excise TaxPermit RefundWSDOT AgreementWSDOT Agreement Project Management Engineering Serv.Project Contingency Eligible for 1% for the Arts RevenueTotal RevenueExpenseTotal Expense Kearney St - 1147 Project Description 14ABCD --------- - ------------ 40,00010,00035,00055,18728,00037,00060,000 319,000 160,592 565,525 849,849 100,000 1,130,117 Total 1,130,036 Expenditures Total Revenues - - Future Years Future Years 19,00020,00050,000 70,000 160,592 179,592 2025 Budget2025 Budget $ 40,00035,00055,18728,00037,00040,00050,000 300,000565,525940,525849,849 1,060,036 Year EndYear End 2024 Estimate 2024 Estimate $ - - 2024 Budget2024 Budget - 9,727 55,187 64,915 2024 Actual2024 Actual - 10,00010,000 Revenues Prior Year Prior Year Expenditures - 40,000 10,000 35,000 55,187 55,187 28,000 37,000 60,000 60,000 319,000160,592565,525849,849914,849100,000 1,130,117 1,130,036 Revised Budget 10/24 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -- 75,00035,00010,00010,00033,25733,25710,00042,61542,615 493,500 496,694 506,694 623,500582,566 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal StreetStormEstimate on budget for REET and not grants Design Engineering / PermittingConstruction Lawrence Street is a main pedestrian route. Disability Awareness Starts Here (DASH) has identified Lawrence Street as a key route that needs the Library. Adding bike lanes and narrowing the lanes will improve mobility for all in terms of traffic calming and providing space for bicycles.Transportation Benefit District ACACJefferson TransitBanked CapacityPublic Infrastructure Funding (PIF)Stormwater FundTransportation Improvement BoardPEConstructionCN Engineering - SCJInspection - Vanir Project Management City Staff Project Contingency Eligible for 1% for the Arts 4664141 Lawrence St Improvements - 1140.0 Project Description RevenueTotal RevenueExpense ABBBCDDE Total Expense - - - - - - - - - - - - - - - - - - - - - - - - 2,000 35,00080,000 180,000215,000133,000 215,000 Total Expenditures Total Revenues -- - - - Future Years Future Years 2,000 25,00055,000 145,000170,000113,000 170,000 2025 Budget2025 Budget - 35,00010,00045,00020,00025,000 45,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures - 2,000 35,00080,00082,000 180,000133,000133,000 215,000215,000 Project Budget $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal This project evaluates approximately 15 of the City's arterial streets in an effort to determine the appropriate non-motorized facilites that are needed. The project will provide an opportunity for public outreach as part of the evaluation. Additionally, the project will provide grant level cost estimates to balance project feasibility and prepare for future grant applications.Transportation Alternatives Grant (Federal)Transportation Benefit District Design Engineering / Permitting Consultant for Planning Study Construction Project Management AdminstrationWSDOT Adminstration Project Contingency Eligible for 1% for the Arts 14 Multimodal Arterial Cohesive Investment Strategy Project Description RevenueTotal RevenueExpenseTotal Expense ----------------------- 25,00025,00025,000 225,000250,000200,000 250,000 Total Expenditures Total Revenues 15,00015,00015,000 115,000100,000 130,000 130,000 Future Years Future Years 10,00010,00010,000 110,000120,000100,000 120,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures - 50,00025,00025,00050,000 250,000200,000200,000 300,000250,000 Project Budget $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal N/A given funding is from TBD and fee in lieu The City received a RAISE grant to develop a plan for connecting the Larry Scott Trail head to Fort Worden. This RAISE grant is part of the Puget Sound to Pacific (PS2P) Federal Grant.RAISE Grant (Federal)REET Design Engineering / Permitting Consultant Construction Project Management Admin Grant EligibleAdmin Grant Ineligible Project Contingency Eligible for 1% for the Arts RevenueTotal RevenueExpenseTotal Expense Olympic Discovery Trail - Larry Scott to Fort Worden Connection Project Description 14 ---------- - --------------- - 5,0005,000 100,000 500,000 605,000 100,000 500,000 605,000 Total Expenditures Total Revenues - - Future Years Future Years - 2,0192,019 500,000 502,019 500,000 502,019 2025 Budget2025 Budget - 2,9811,000 100,000102,981100,000 101,000 Year EndYear End 2024 Estimate 2024 Estimate 12,642 100,000 185,000 285,000 100,000 170,000 282,642 2024 Budget2024 Budget - - DateDate 2024 Actual To 2024 Actual To - 1,981 1,981 Revenues Prior Year Prior Year Expenditures - 5,0005,0005,000 100,000 500,000 100,000 100,000 500,000 500,000 605,000605,000 Budget 9/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ 30,00030,00015,00015,000 100,000 185,000 190,000 190,000 285,000235,000 Project Budget $ $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal inflationary costs as well as the results of hte public process that yielded a final design concept of a parkway with a path. south side. The project involves selective removal over time on the Kah Tai side by the City. The Port of Port Townsend is leading design and construction effort for this project. Susbsequent funding through PIF was added to the project to cover PUD on 9/12/22. The construction of the south side of the project will be led by the Port with the City doing work overtime on The Sims Way and Boatyard Expansion project was approved by the City Council, Port of Port Townsend, and Jefferson County the north side. The project involves removal of the existing Poplar trees, expanding the boatyard, and planting new trees on the ARPAIn Kind Match - North Side - $50,000PIFCity Admin Costs - PW Admin.Design Engineering / Permitting Design Consultant - Port Construction Pass thru ot the Port for Construction Contract Project Management Engineering Administration Project Contingency Eligible for 1% for the Arts 1414 RevenueTotal RevenueExpenseTotal Expense Sims Way and Boatyard Expansion Project Project Description ABCD ------------------- 5,0005,000 25,00050,00025,00015,00015,00050,00010,000 100,000 100,000 Total Expenditures Total Revenues - - Future Years Future Years 5,0005,000 25,00050,00025,00015,00015,00050,00010,000 100,000 100,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures 5,0005,000 25,00050,00025,00015,00020,00015,00050,00065,00010,00015,000 100,000100,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ 111111111 SubtotalSubtotalSubtotal N/A given funding is from TBD and fee in lieu With the voter enacted Transportation Benefit District sales tax of 0.3%, the work to be funded includes approximately $25,000 for traffic calming and approximately $50,000 for pedestrian safety. Additionally, the City fee in lieu collections for sidewalk are lumped into this project.TIF - Traffic Calming TIF - Pedestrian Safety - SidewalksFee in lieu for Sidewalk Construction Design Engineering / Permitting In house traffic calming EngineeringIn house Sidewalk Design Engineering Construction Traffic calming InfrastructureSidewalk Construction Project Management Traffic Calming Guide BookAdmin Project Contingency Eligible for 1% for the Arts 2025 Active Transportation Project (Traffic Calming and Sidwalks)Project Description Revenue 444 Total RevenueExpenseTotal Expense ------------------- 750 75,00013,50015,00065,00060,00065,00075,00015,00013,50049,250 379,354 145,000 627,854 284,516 628,016 Total Expenditures Total Revenues - - Future Years Future Years 750 77,00013,50017,00060,00065,00013,50021,609 379,354 469,854 284,516 462,375 2025 Budget2025 Budget - 68,02168,00015,00048,00075,00015,00020,000 151,021 158,000 Year EndYear End 2024 Estimate 2024 Estimate - 750 64,70016,98628,45226,53028,455 320,987 385,687 284,516 385,688 2024 Budget2024 Budget - 11,74947,67814,428 62,107 11,748.82 2024 Actual 2024 Actual Actuals to DateActuals to Date $ 6,9796,9797,641 7,641 Revenues Prior Year Prior Year Expenditures - 750 75,00013,50015,00065,00065,00060,00065,00075,00015,00013,50049,25049,250 379,354 145,000 284,516 513,016 627,854628,016 Proposed 2025 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - 750 75,00037,18240,00028,45235,00035,00028,455 379,354 284,516 352,967 454,354387,967 Adopted 2024 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Not eligible - Grants and Design only The City secured a grant from the Transportation Improvement Board under the pavement preservation program. This project seeks to preserve the existing roadway and make ADA improvements along Tyler Street where the Farmers Market operates on Saturdays. The Street condition is deteriorating rapidly. This grant will help preserve the life of the pavement and improve accessibility for this important location in Uptown.Transportation Improvement Board (TIB) GrantReal Estate Excise TaxTransportation Improvements Funded (TBD)Storm - Operation Urban ForestryStorm - Operations Design Engineering / Permitting Design Consultant Construction Construction ContractPavement Repair Ahead of Overlay (FDR)CN Engineering ConsultantSidewalk RepairStreet Crew StormStreet Tree Replacment Project Management Grant ineligible staff time Project Contingency Eligible for 1% for the Arts 14144 RevenueTotal RevenueExpenseTotal Expense Tyler St Overlay Project Description ABBBCDDE ----------------------- 75,00028,05018,55040,000 198,600273,600187,000 273,600 Total Expenditures Total Revenues - - Future Years Future Years 60,00013,05018,55025,000 183,600243,600187,000 243,600 2025 Budget2025 Budget 15,00015,00030,00015,00015,000 30,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget -- - Date 2024 Actual 2024 Year to - - Revenues Prior Year Prior Year Expenditures - 75,00028,05028,05018,55040,00040,000 198,600187,000205,550 273,600273,600 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal REET Design Engineering / PermittingConstruction The City received a Transportation Improvement Board Grant in 2023 to construct sidewalk on Washington Street and Walker Street to connect Sims Way with the Courthouse with an accessible route.TIBTBDREETDesignConstruction ContractCN Engineering Project Management In eligible Costs for admin Project Contingency Eligible for 1% for the Arts Washington/Walker Sidewalk Project Project Description Revenue 144 Total RevenueExpenseTotal Expense - 1030485 0080868 7030010 ,,,,,,, 7040275 4090479 2021655 ,,,,,, l 316000 a t 111 o T -- 00 00 00 ,, 88 99 750,000 66 ,, e 1,653,0004,295,0006,698,000 66 r u t u F - 01 06 07 ,, 8,959 30 67 5 250,000100,000 33 ,, 2 1,387,0001,626,0003,361,803 33 0 2 --- 44 82 03 ,, 8,959 16 82 207,701373,383517,366 5 5 4 2 0 2 ll aa tt oo e T T v r v p e e x r s E e R e t aR t W b r e o D f s r r es e e c n s r aw we u r e eo s l o u S / S t e / i S s S rr s t d ee g n n n tWt C a n e aa e i rG D Gvoe!526!Xbufs!Tfxfs!DJQ!)Xbufs* p p d WGOWS x x n E E u FG/F OH and Misc (Water) d n 15705 a 11139 44444 s e u 5 n 1 e 4 v e e u R n e d 5 v e 1 t e c 4 R r e l e j d t a tn o a r ou PW TTotal ExpenseF ---------------------------- 40,000 850,000850,000100,000710,000 850,000 Total Expenditures Total Revenues - - Future Years Future Years 28,803 840,000840,000100,000710,000 838,803 2025 Budget2025 Budget 10,00010,00010,000 10,000 Year EndYear End 2024 Estimate 2024 Estimate -- 90,00020,000 110,000110,000 110,000 2024 Budget2024 Budget 4,654 4,654 4,654 4,654 Date 2024 Actual 2024 Actual to - 1,198 1,198 Revenues Prior Year Prior Year Expenditures 40,00040,000 850,000100,000100,000710,000710,000 850,000850,000 Project Budget $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction The 1-million gallon steel standpipe needs periodic repainting to preserve the structure. The tank has not been recoated since it was constructed in 1995. Engineering and design for painting and corrosion protection is scheduled for 2022 and repainting in 2023. The project will require taking the standpipe offline for approximately 2 months to sandblast and recoat the tank. Water SDC (495)Water Capital Surcharge (430)Water Operating (411)ConsultantContractor Project ManagementProject Contingency Eligible for 1% for the Arts 444 RevenueTotal RevenueExpenseTotal Expense 1MG Standpipe Reservoir Steel Coating Project Description ABCD --------------------------- 20,000 100,000100,000200,000180,000 200,000 Total Expenditures Total Revenues No - - Future Years Future Years 20,000 100,000100,000200,000180,000 200,000 2025 Budget2025 Budget --- - Year EndYear End 2024 Estimate 2024 Estimate 20,000 100,000100,000200,000180,000 200,000 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures - 20,00020,000 100,000100,000180,000180,000 200,000200,000 Project Budget $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Miscellaneous capital repairs and replacement work comes up most years. The rate analysis includes $200,000 per year of miscellaneous and unforeseen capital improvements. These funds also support removal and replacement of several thousand feet of spaghetti lines (4" or smaller pipes) which are a sources of leaks and system service failures. The city has started replacing 20 year old water meters as well.Water Operating (411)Water SDC (495)Design Engineering / PermittingConstruction water main break Golf course wellMisc.Project Management Admin and Design Project Contingency Eligible for 1% for the Arts 44 2025 General Water Capital Replacement, Improvements, and Repairs Project Description RevenueTotal RevenueExpense BCD Total Expense ---------------------------- 15,00010,000 125,000125,000100,000 125,000 Total Expenditures Total Revenues - - Future Years Future Years 8,500 15,000 123,500123,500100,000 123,500 2025 Budget2025 Budget - 1,500 1,500 1,500 1,500 Year EndYear End 2024 Estimate 2024 Estimate 15,00010,000 125,000125,000100,000 125,000 2024 Budget2024 Budget - 1,199 1,199 2024 Actual2024 Actual -- - Revenues Prior Year Prior Year Expenditures 15,00015,00010,00010,000 125,000100,000100,000 125,000125,000 Project Budget $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Investments in the diversions are anticipated in the long-term plan. The main control valve building at the Big Quilcene Diversion has experienced significant rot and needs replacing at the request of the operating crew. Water - Olympic Gravity Water System Fund (417)Design ConsultantConstruction Contract Project Management Staff Admin Project Contingency Eligible for 1% for the Arts 4 ABC D RevenueTotal RevenueExpenseTotal Expense Big Quilcene Main Control Valve Building Replacement - 6404.4 Project Description ---------------------------- 40,00024,000 194,000194,000130,000 194,000 Total Expenditures Total Revenues - - Future Years Future Years 19,000 149,000149,000130,000 149,000 2025 Budget2025 Budget 5,000 45,00045,00040,000 45,000 Year EndYear End 2024 Estimate 2024 Estimate 12,000 142,000142,000130,000 142,000 2024 Budget2024 Budget - 693 693 Q1,Q2 2024 Actual 2024 Actual YTD - - Revenues Prior Year Prior Year Expenditures 40,00040,00024,00024,000 245,000181,000181,000 245,000245,000 Budget 10/24 Revised Project $ $ $ $ $ $ $ $ $ - 24,00024,000 154,000130,000130,000 154,000154,000 Project Budget $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Cathodic protection is a key feature in the system needed to extend the life of the pipeline. Cathodic protection is missing in the area between the Master meters and south past Otto Street. This project will install a new cathodic system for this section of the pipeline.Water - Olympic Gravity Water System Fund (417)Project Management Administration Project Contingency Eligible for 1% for the Arts 4 ABC RevenueTotal RevenueExpenseTotal Expense Cathodic Protection - 1928 OGWS Pipeline - 6404.3 Project Description ------------------------------- 700,000700,000550,000150,000 700,000 Total Expenditures Total Revenues - - Future Years Future Years 520,000520,000400,000120,000 520,000 2025 Budget2025 Budget 30,000 180,000180,000150,000 180,000 Year EndYear End 2024 Estimate 2024 Estimate 540,000540,000425,000115,000 540,000 2024 Budget2024 Budget - 4,375 30,129 34,504 Q1,Q2 to Date 2024 Actual YTD 2024 Actual YTD -- - Revenues Prior Year Prior Year Expenditures 700,000550,000550,000150,000150,000 700,000700,000 September 24 Revised Budget $ $ $ $ $ $ $ - 550,000425,000425,000125,000125,000 550,000550,000 Project Budget $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Evaluation of the 1928 section of the pipeline is included in the plan to accurately assess the remaining useful life. This study will guide replacement strategies to ensure water delivery is sustained. Olympic Gravity Water System Fund (417)Design Consultantn/a Project Management Staff Administration Project Contingency Eligible for 1% for the Arts 4 AC D RevenueTotal RevenueExpenseTotal Expense Pipeline Condition Assessment - 6404.2 Project Description -------------------------- 80,00080,000 750,000250,000250,000750,000 1,080,000 Total 1,080,000 Expenditures Total Revenues - 30,00030,000 750,000750,000 780,000 780,000 Future Years Future Years - 40,00040,000 250,000290,000250,000 290,000 2025 Budget2025 Budget ---- 9,701 9,701 9,701 9,701 Year EndYear End 2024 Estimate 2024 Estimate 80,00020,00020,00020,00037,550 490,000750,000951,000271,450 1,320,000 1,320,000 2024 Budget2024 Budget $ 3,642 4,219 4,219 3,641.56 2024 Actual2024 Actual $ 299299299 299 Revenues Prior Year Prior Year Expenditures -- 80,00080,00080,000 750,000250,000250,000250,000750,000750,000 1,080,0001,080,000 Budget 10/24 Revised Project $ $ $ $ $ $ $ $ $ $ $ $ $ 80,00020,00020,00020,00060,00047,55047,550 500,000750,000951,000951,000271,450 1,330,0001,330,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included The City secured funding to purchase an easement between Anderson Lake Road and City Lake property for the purpose of future pipeline and co-located Olympic Discovery Trail. City received a direct allocation (Community Facilities Project) grant in 2023 to assist with purchase. Additionally, this project is funded through the RAISE grant which includes preliminary design and environmental review. Water Operations (411) Timber Management HarvestWater Operations (411) Land SalesWA State Community Facilities Project GrantRAISE Grant - Jefferson County Design Engineering / Permitting AppraisalsCultural Resources SurveyLand Survey and Lot line AdjustmentRAISE Grant - includes Pre-design and ROW Construction Land PurchaseEasement/ROW Project Management Staff Time Administration Project Contingency Eligible for 1% for the Arts 4411 Eaglemount Property Purchase - 6404.1 Project Description RevenueTotal RevenueExpense AAABCD Total Expense --------------------------- 99,281 144,000350,000 2,293,2812,293,2811,700,000 Total 2,293,281 Expenditures Total Revenues 45,000 1,745,0001,700,000 1,745,000 1,745,000 Future Years Future Years 50,000 400,000400,000350,000 400,000 2025 Budget2025 Budget 2,438 130,383130,383127,227 129,665 Year EndYear End 2024 Estimate 2024 Estimate 73,10073,10010,000 135,000 145,000 2024 Budget2024 Budget 173 58,43058,43072,925 73,098 DateDate 2024 Year To 2024 Year To 1,843 17,89817,89816,773 18,616 Revenues Prior Year Prior Year Expenditures - 144,000350,000494,000100,000100,000 2,293,2811,700,0001,700,000 2025 2,293,2812,294,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ No -- 88,10086,90025,00025,000 150,000150,000 175,000175,000 2024 Project Budget $ $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction Phase 1 - Stability Assessment The City is required to retain an engineering consultant to develop alternatives for improving East Dam stability during possible seismic events. The alternatives will also examine minimizing earthquake-induced embankment deformations which can lead to uncontrolled release of reservoir contents.Phase 2 - Design Engineering / PermittingThe City will be required to retain an engineering consultant for design engineering and permitting of the approved selected East Dam repair alternative.Olympic Gravity Water System Fund (417)FEMA Grant - Hazard Mitigation GrantStability AssessmentDesign Engineering / PermittingRepair - Buttress Alternative (2026) Project Management Administration Project Contingency Eligible for 1% for the Arts 41 RevenueTotal RevenueExpenseTotal Expense Lords Lake - 6403 Project Description ACD -------------------------- 25,000 175,000100,000100,000 2,750,0002,750,0002,350,000 Total 2,750,000 Expenditures Total Revenues 100,000100,000 2,550,0002,350,000 2,550,000 2,550,000 Future Years Future Years 25,000 200,000200,000175,000 200,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - DateDate 2024 Year To 2024 Year To - - Revenues Prior Year Prior Year Expenditures 25,000 ЋЉЉͲЉЉЉ 100,000300,000100,000125,000 2,750,0002,325,0002,325,000 2025 2,750,0002,750,000 Project Budget $ $ $ $ $ $ $ $ $ $ No υ SubtotalSubtotalSubtotal Utilities not included The Water Supply Agreement includes a pipeline modification project to improve water storage efficiency that would need to be built at the same time as any improvements ot the Lords Lake Dam. This year's budget includes design which is coincident with the design work of the Lords Lake Dam stablization project.Olympic Gravity Water System Fund (417)Design Engineering / Permitting Pre-Design Engineering / PermittingFinal Design Construction Pipeline Improvements Contract Project Management Design Project ManagementConstruction Project Management Project Contingency Eligible for 1% for the Arts 4 Lords Lake - Pipeline Improvements Project Description RevenueTotal RevenueExpense ACD Total Expense --------------------------- (64) 14,12131,747 551,891551,891506,639 552,443 Total Expenditures Total Revenues - - Future Years Future Years - - 2025 Budget2025 Budget 88,00088,00015,00010,000 25,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget 5,501 47,02947,02928,442 33,944 2024 Actual2024 Actual (64) 14,12121,747 463,891463,891491,639 527,443 Revenues Prior Year Prior Year Expenditures 55,00055,00020,00020,000 275,000200,000200,000 275,000275,000 Project Budget $ $ $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Accurate metering is necessary to ensure equitable water system cost sharing for the Olympic Gravity Water System operations and asset replacement. Port Townsend Municipal and the Mill water consumption will be individually metered at the point of delivery, located at the intersection of Mill Road and South 8th Street. Engineering and design for the metering is underway in 2021 and installation of the meters will occur in March 2022 during the annual paper mill maintenance shutdown. Water Operating (411)Water Capital Surcharge (430)Water SDC (495)Design Engineering / Permitting RH2 Contract $44,000+20,634 Construction Project ManagementProject Contingency Eligible for 1% for the Arts 444 ABC D OGWS Master Meters - 6402 Project Description RevenueTotal RevenueExpenseTotal Expense ------------------- 11,50073,50015,000 250,000250,000150,000 250,000 Total Expenditures Total Revenues - - Future Years Future Years 73,50010,000 233,500233,500150,000 233,500 2025 Budget2025 Budget 5,000 16,50016,50011,500 16,500 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 11,50073,50085,00015,00015,000 250,000150,000150,000 250,000250,000 Project Budget $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction The OGWS 1928 Steel pipe experienced a leak in a remote location near Snow Creek Ranch. The leak caused siginficant damage to the hillside in steep terrain. Staff is currently in the process of evaluating restoration needs as well as pipeline stability strategies. A budget amendment for this project is anticipated once additional information is obtained from professional consulting support. The OGWS fund includes a $2 million reserve balance to address unanticipated repairs. Olympic Gravity Water System Fund (417)Design Consultant - AssessmentDesign placeholderRepairs - Place holder estimate Project Management Staff Administration Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense OGWS - Snow Creek Ranch Break Restoration Project Description ----------------------------- 5,000 2,130,0002,130,0002,125,000 Total 2,130,000 Expenditures Total Revenues 2,000 1,623,0001,621,000 1,623,000 1,623,000 Future Years Future Years 2,000 407,000407,000405,000 407,000 2025 Budget2025 Budget 1,000 99,000 100,000100,000 100,000 Year EndYear End 2024 Estimate 2024 Estimate 200,000200,000200,000 200,000 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures - 5,000 5,000 2,130,0002,125,0002,125,000 2025 2,130,0002,130,000 Project Budget $ $ $ $ $ $ $ $ -- 1,729,3371,729,3371,729,337 2024 1,729,3371,729,337 Project Budget $ $ $ $ $ $ $ No SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction The majority of the City water meters are over 20 years old and are in need of replacement. Meters either start leaking or start missing volume of water in the reads causing the city to lose revenue. Additionally, the meters need to be replaced with an automatic read system to reduce labor costs for reading of meters from approximately 15 person days to 3 person days per month. The meters will be installed in phases over a 3-5 year period. The rate model has meter replacement beginning in 2025. Water Capital Surcharge (430)Water Operating (411)Water SDC (495)Project ManagementProject Contingency Eligible for 1% for the Arts 444 RevenueTotal RevenueExpenseTotal Expense Water Meter Replacement Project Description BD --- 1092199 6072600 7043577 ,,,,,,, 5595522 2285933 8449666 ,,,,,,, l 9172111 a t 1333 o T --- 99 33 44 ,, 99 18 65 ,, e 8,114,4101,403,7501,517,337 11 r 10,583,94321,589,439 22 u t u F --- 09 16 74 ,, 8,959 78 21,250 47 5 11 ,, 2 1,626,2005,954,3101,545,9509,169,510 99 0 2 ---- 28 11 47 ,, 8,959 82 85,151 28 951,226873,760 9 8 4(107,965) 2 0 2 ll aa tt oo T T v p e x E R r e w e t S b s r e e o c s fD r e rr u r s s ee P o nu I C st s e a wwi S Cp D s p eoe d l l g S n O O /n SS a n e s re t r i rr t me p ep e d ee n r tt x e x n w n Gvoe!526!Xbufs!Tfxfs!DJQ!)Tfxfs* a raoa E er E tte u FSGWSGWSG/F OH and Misc (Sewer) d n 0112505 a 1011139 1344444 s e u 5 n 1 e 4 v e e u R n e d 5 v e 1 t e r c 4 R e e l j d a w tn o e r ou PS TTotal ExpenseF ----------------------------- 45,00050,000 382,200382,200287,200 382,200 Total Expenditures Total Revenues - - Future Years Future Years 45,00050,000 382,200382,200287,200 382,200 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 45,00045,00050,00050,000 382,200287,200287,200 382,200382,200 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction Miscellaneous capital repairs and replacement work comes up most years. The rate analysis includes $350,000 per year of miscellaneous and unforeseen capital improvements. These funds support pipe replacement, and rehabilitation such as CIPP or slip lining.Sewer OperationDesign Engineering / Permitting Project Management Admin Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense 2025 General Sewer Capital Replacement, Improvements, and Repairs Project Description BCD ------------------------- 9,000 98,00098,00089,000 98,000 Total Expenditures Total Revenues - - Future Years Future Years 9,000 98,00098,00089,000 98,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures - 9,000 9,000 98,00089,00089,000 98,00098,000 Project Budget $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction/Study ARC Flash studyThe Wastewater Treatment Plant needs to have an evaluation of the and lift stations to identify hazards from ARC flash in our electrical systems for equipment and personnel safety. This is project number M1 in the General Sewer Plan.Sewer Rates 411Small Works Contract or In-house Project Management Staff Adminstration - Facilities and Engineering Admin Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Project Description - - - - - - - - - - - - - - - - - - - - - - - - 50,00030,000 327,000327,000247,000 327,000 Total Expenditures Total Revenues 20,000 267,000247,000 267,000 267,000 Future Years Future Years 60,00060,00050,00010,000 60,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures 50,00050,00030,00030,000 327,000247,000247,000 327,000327,000 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal New office and workshop building for Compost FacilityThe current compost facility office is an old trailer and the storage area is a connex container. This project construct a new office building for Compost Facility so they have a seperate lunch room from their work spaces. Also a new bathroom facility and storage area. This project is C8 in the General Sewer Plan.Sewer Rates 411 Design Engineering / Permitting Assume deisign build level of architectural Construction Metal building office and shop Project Management Staff administration Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Project Description --------------------------- 30,00030,00030,000 230,000260,000198,420 258,420 Total Expenditures Total Revenues - - #NAME? Future Years Future Years --- - 2025 Budget2025 Budget 5,964 30,00030,000 (71,128) (101,128)(150,219) (114,255) Year EndYear End 2024 Estimate 2024 Estimate 20,25720,25720,257 20,257 2024 Budget2024 Budget 8,266 8,266 6,773 1,214 7,986 2024 Actual2024 Actual 24,036 331,128331,128348,639 372,675 Revenues Prior Year Prior Year Expenditures - 30,00030,00030,000 230,000228,420228,420 260,000258,420 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities not included The General Sewer Plan for the City was last updated in 2000. This update involves a significant review of the entire sanitary sewer system to plan for the next 20 years. The City selected RH2 Engineering in 2021 to complete the plan update. The plan will result in an updated Capital Plan as well as project operational needs for operating the sewer system.Sewer System Development Charge (495)Interlocal Agreement with Jeff. Co Design Engineering / Permitting RH2 Contract = 198522+189898 - less 160,000 for nutrient grantRH2 Contract - Septage Handling 30,000 ConstructionProject ManagementProject Contingency Eligible for 1% for the Arts 41 RevenueTotal RevenueExpenseTotal Expense General Sewer Plan Project Description AACD ------------------------ 75,000 150,000 1,341,5001,341,5001,116,500 Total 1,341,500 Expenditures Total Revenues - - Future Years Future Years 75,000 150,000 1,331,5001,331,5001,116,500 1,341,500 2025 Budget2025 Budget $ - 10,00010,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - 5858 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 75,00075,000 150,000150,000 1,341,5001,116,5001,116,500 1,341,5001,341,500 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction The sewer trunk line leading from the Rainier Subarea to the sewer interceptor behind Safeway needs upsizing. The first segment to address is a Sims Way crossing in the vicinity of Wilson Street and Holcomb Streets. This is project SM1 in the General Sewer Plan.Sewer SDC Project ManagementProject Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Holcomb and Wilson Sewer Upsizing Project Project Description ------------------------- 50,000 2,180,0002,180,0002,130,000 Total 2,180,000 Expenditures Total Revenues 2,105,0002,105,000 2,105,000 2,105,000 Future Years Future Years 75,00075,00050,00025,000 75,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures - 75,00075,000 2,180,0002,105,0002,105,000 2,180,0002,180,000 Project Budget $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction Kuhn Street land purchaseDue to the need for future expansion of the WWTP on Kuhn Street we need to look at the acquasition of the property that is SW of the current treatment facility between 51st and 53rd streets. Land purchase is included in the rate model and General Sewer Plan. Sewer RatesAppraisal and Negotiation Services Project Management Land Purchase Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Project Description ------------------------- 92,500 264,310500,310107,500 1,425,0001,425,0002,850,0005,964,3105,264,000 Total 5,964,310 Expenditures Total Revenues 50,00050,000 278,500 1,388,7501,403,7502,850,0005,642,5005,264,000 5,642,500 Future Years Future Years 21,25021,25042,50042,500 214,310256,810171,810 256,810 2025 Budget2025 Budget 15,00050,00065,00050,00015,000 65,000 Year EndYear End 2024 Estimate 2024 Estimate 50,00010,00060,00050,00010,000 60,000 2024 Budget2024 Budget - 7,394 7,423 14,817 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 264,310500,310500,310100,000100,000200,000 1,425,0001,425,0002,850,0005,263,6905,263,690 9/24 5,964,3105,964,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ - 50,00050,00050,00050,00050,00050,000 100,000100,000 5/23 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities not included Design Engineering / PermittingConstruction The Lawrence Street stormwater system is connected to the sewer system for a section of Lawrence Street in Uptown between the Library and Tyler Street. Separation of this system from the sewer system is a benefit to the Monroe Street sewer lift station as well as the Wastewater Treatment Plant. The cost of the project and scoping needs to be evaluated based on the road condition. Additionally, staff desires to secure grant resources. This project is the first phase to establish a pre-design for competitive grant applications. The sewer plan estimates the project at $5.6 million. Funding was secured in 2024 for design, thus this project budget has been increased to represent the best information available at this time.Sewer Operations (411)Sewer Capital Surcharge (430)Sewer SDC (495)Stormwater Operations (412)Streets (Paving)PWB Pre-construction Loan - SecuredLoan/Grant (Unsecured)Design ConsultantConstructi on ContractConstruction Engineering Project Management Staff Administration and research - Loan eligibleStaff Admin - non-eligible Project Contingency Eligible for 1% for the Arts 4444411 RevenueTotal RevenueExpenseTotal Expense Lawrence Street Combined Stormwater Sewer System Separation Project Description AAAAABBBBBCCCCD ------------------- 150,000600,000500,000500,000150,000 2,500,0001,700,0002,000,0006,350,0004,600,000 Total 6,350,000 Expenditures Total Revenues 50,00050,000 830,000500,000 2,000,0002,300,000 2,880,000 2,850,000 Future Years Future Years 50,00050,000 570,000500,000 1,670,0001,700,0003,420,0002,300,000 3,420,000 2025 Budget2025 Budget 41,97741,97730,00039,941 69,941 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget - 714 29,210 29,924 2024 Actual2024 Actual 8,023 8,023 10,059 10,059 Revenues Prior Year Prior Year Expenditures - 150,000600,000500,000500,000150,000150,000 2,500,0001,700,0002,000,0001,100,0004,600,0005,100,000 6,350,0006,350,000 serving Caswell Brown subject to UGA expansion. Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Sewer (EPA) Sewer SubtotalSubtotalSubtotal SDC The Mill Road Lift Station has been funded through housing grants to support the development of the Evans Vista project. This project has perviously been shown in the General Capital projects and now is shown in sewer to appropriately represent the fund the work will be accounted within. The Lift Station also has the potential of Design Engineering / PermittingConstruction Federal Grant for State Utility Grant (CHIP) for SewerSewer Operations (Local Facilities Charge)Jefferson County - Caswell BrownConsultantLand PurchaseMisc.Contruction ContractConstruction Engineering Project Management City Aministration Project Contingency Eligible for 1% for the Arts 1144 RevenueTotal RevenueExpenseTotal Expense Mill Road Lift Station Project Description --------------------------- 15,00011,09615,000 160,000175,000148,904 175,000 Total Expenditures Total Revenues -- - Future Years Future Years -- - 2025 Budget2025 Budget 91,22615,00091,26013,784 106,226 105,044 Year EndYear End 2024 Estimate 2024 Estimate 9,309 9,902 115,000124,309114,407 124,309 2024 Budget2024 Budget 4,302 4,302 8,532 2,082 10,613 2024 Actual2024 Actual - 1,216 68,77468,77457,64411,096 69,956 Revenues Prior Year Prior Year Expenditures - 15,00015,00015,000 160,000160,000160,000 175,000175,000 Project Budget $ $ $ $ $ $ $ $ $ determine what upgrades are necessary to comply with the new permit. SubtotalSubtotalSubtotal Utilities not included Puget Sound, the Department of Ecology is expected to place new limits on the City's National Pollutant The City's Wastewater Treatment Plant does an exceptional job removing nutrients from the waste stream Discharge Elimination System (NPDES) permit. The City will receive a grant to perform a study of the plant to before reclaimed water is released into the Straight of Juan De Fuca. In order to reduce nutrient loading to the Design Engineering / PermittingConstruction Department of Ecology (ECY) Nutrient GrantSewer Operations (411)Design Consultant (RH2 Contract - See Sewer Master Plan)Misc. Lab testingMisc. Project Management Staff Time and Reimbursable Project Contingency Eligible for 1% for the Arts 14 RevenueTotal RevenueExpenseTotal Expense Wastewater Nutrient Project Description ABCD - - - - - - - - - - - - - - - - - - - - - - - 791 10,000 850,000200,000850,000450,000309,209 3,413,7004,473,7002,863,700 Total 4,473,700 Expenditures Total Revenues 2,970 78,587 390,243382,075450,000189,724 3,413,7003,885,4992,863,700 3,885,499 Future Years Future Years - 50,00050,000 400,000450,000400,000 450,000 2025 Budget2025 Budget 3,151 50,00063,48150,00040,000 90,000 116,632 Year EndYear End 2024 Estimate 2024 Estimate 500,000500,000400,000100,000 500,000 2024 Budget2024 Budget 3,151 3,151 8,227 5,291 27,785 41,304 DateDate 2024 Actual to 2024 Actual to - 791 9,7577,9323,879 21,56817,92529,485 48,201 Revenues Prior Year Prior Year Expenditures 10,000 850,000200,000850,000450,000310,000310,000 3,413,7001,300,0002,863,7002,863,700 4,473,7004,473,700 Revised 9/24 Revised 10/24 Project Budget Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ - - 10,000 770,000770,000310,000310,000 1,070,000 1,080,0001,080,000 Revised 7/23 Revised 7/23 Project Budget Project Budget $ $ $ $ $ $ $ $ $ $ 200,000 170,000 805,000 805,000403,000 403,000 3,330,0002,710,0002,710,000 3,918,000 3,700,000.00 $ $ $ Project Budget $ $ $ $ $ $ $ $ Project Budget determined with approved permits. SubtotalSubtotalSubtotal Utilities not included This project includes permitting, design and construction to replace or rehabilitate the off-shore portion of the existing wastewater will have to re-apply for additional loan money in the future. The current budget shows no construction costs. These costs will be project. In 2023, Department of Ecology and City Staff worked collaboratively to reduce the loan amount based on timelines. The City treatment plant outfall system with a new outfall and diffuser. The City has secured Department of Ecology loans to help construct this Department of Ecology (ECY) Loan/GrantSewer System Development Charge (495)Sewer (411)Future Loan/Grant Design Engineering / Permitting Consultant Permitting and Eng. ReportConsultant Engineering (Design and Bidding)Construction Contractor Project Management AdminMisc Project Contingency Eligible for 1% for the Arts 1441 RevenueTotal RevenueExpenseTotal Expense Sewer Outfall Project Description ABCD -------------------- 99,00011,00034,000 790,000646,000155,000 3,100,0003,890,0002,945,000 3,890,000 Total Revenues Total Expenditures 34,000 680,000646,000155,000 3,100,0002,945,000 3,780,000 3,780,000 Future Years Future Years 99,00011,000 110,000110,000 110,000 2025 Budget2025 Budget - - EndEnd 2024 Estimate Year 2024 Estimate Year - - Revenues Prior Year Prior Year Expenditures 99,00011,00034,000 790,000646,000745,000155,000200,000 3,100,0002,945,0002,945,000 3,890,0003,890,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ made. SubtotalSubtotalSubtotal will be to build new Aeration Ditches and demolish the existing ones to make room for some changes to the current ditches to help with nutrient removal, that will need to be additional clarifiers. This is number F8 in the Sewer Plan. In the near term there may be In the coming years our treatment plant will be too small to handle all of the sewage that the City produces. When this happens we have to expand. The first step in this expansion Sewer RatesFuture Sewer Bond or State Loans/Grants Design Engineering / Permitting Pre-design and Engineering ReportConsultant Services and Permitting Construction Construction Contract Project Management Staff Administration Engineering ReportStaff Administration DesignStaff Administration Construction Project Contingency Eligible for 1% for the Arts 41 Oxidation Ditches - Near Term Upgrades Project Description RevenueTotal RevenueExpenseTotal Expense ----------------------- 25,000 139,000110,000 1,289,0001,015,000 1,289,000 Total 1,289,000 Expenditures Total Revenues 110,000 1,125,0001,015,000 1,125,000 1,125,000 Future Years Future Years 25,000 164,000139,000 164,000 164,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate 50,000 150,000150,000100,000 150,000 2024 Budget2024 Budget - - 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 25,000 139,000139,000110,000135,000 1,289,0001,015,0001,015,000 9/24 1,289,0001,289,000 Revised Budget $ $ $ $ $ $ $ $ $ $ 100,000100,000940,000940,000100,000100,000 1,140,000 1,140,0001,140,000 Project Budget $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction The Wastewater Treatment Plant was constructed and put into service in 1994. The Supervisory Control and Data Acquisition (SCADA) system has not been upgraded since this time and is outdated. This technical system runs the plant with operator controls. This technical system is a key component of plant operation and needs to be replaced. Currently parts are no longer being produced, thus this project needs to be addressed soon. This project is included in the General Sewer Plan as project number F6.Sewer Operations (411)Design Consultant (10%)Construction ContractConstruction Engineering (10%)Project Management Staff Administration DesignStaff Administration Construction Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense SCADA Update Project Description ABBCD ----------------------- 75,00043,600 436,000436,000100,000217,400 436,000 Total Expenditures Total Revenues - - Future Years Future Years 75,00043,600 436,000436,000100,000217,400 436,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate - - Revenues Prior Year Prior Year Expenditures 75,00075,00043,60043,600 436,000100,000217,400317,400 436,000436,000 Project Budget $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction A section of pipe on Washington Street between Taylor and Filmore has suitcased and it at risk of total failure. The General Sewer Plan includes specifically includes this project number SM10 as a result of the 2022 camera inspections of AC pipe. Sewer Operations - WW CollectionsIn house engineering supportDig Out and Replace Failed PipeSlip Lining Project Management Admin Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Washington Street Collapsed Sewer Replacement Project Description ----------------------- 40,00052,00049,000 138,200461,200136,000 2,700,0002,838,2002,100,000 Total 2,838,200 Expenditures Total Revenues - - Future Years Future Years -- 93,20040,00049,000 136,000 1,970,0002,063,2001,850,000 2,075,000 2025 Budget2025 Budget $ - 32,748 730,000592,705308,282250,000 (137,295) 591,030 Year EndYear End 2024 Estimate 2024 Estimate 88,80326,000 126,197135,940 2,374,0002,374,0001,997,060 2,374,000 2024 Budget2024 Budget 1,059 14,49625,550 155,031 181,640 14,496.22 to Date 2024 Actual $ 2024 Actual Year 19,252 182,295182,295152,918 172,170 Revenues Prior Year Prior Year Expenditures 40,00052,00049,000 138,200461,200461,200101,000 136,000 2,700,0002,100,0002,140,000 2,838,2002,838,200 Revised 10/24 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ 35,00040,00052,00048,803 461,197 461,197 100,803 135,940 2,700,0001,997,0602,037,060 2,735,0002,735,000 Project Budget $ $ $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Design Engineering / PermittingConstruction After a section of asbestos concrete pipe collapsed during the December 27, 2022 King Tide event, the City evaluated the entire section of pipe between the Gaines Street Lift Station and the Ferry Terminal and determined that replacement is necessary. This trunk pipeline serves all of Downtown and most of Uptown and thus is critical sewer infrastructure. The City obtained a low interest loan in the amount of $2.7 million from the Public Works BoardSewer SDC (495)Public Works Trust Fund Loan/GrantDesign ConsultantConstruction ContractConstruction Engineering Project Management Staff AdministrationStaff Construction Admin Project Contingency Eligible for 1% for the Arts 41 RevenueTotal RevenueExpenseTotal Expense Water St. Sewer Main Replacement Project Description ABBCD --------------------------- 318,000212,000212,000 2,302,4401,560,440 2,302,440 Total 2,302,440 Expenditures Total Revenues 212,000162,000 1,934,4401,560,440 1,934,440 1,934,440 Future Years Future Years 33,000 301,000268,000 301,000 301,000 2025 Budget2025 Budget 67,00067,00050,00017,000 67,000 Year EndYear End 2024 Estimate 2024 Estimate 50,000 300,000300,000250,000 300,000 2024 Budget2024 Budget - 3,711 3,711 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 318,000318,000212,000212,000212,000 2,302,4401,560,4401,772,440 2,302,4402,302,440 Project Budget $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities not included The Wastewater Treatment Plant Influent wetwell is where all sewage collected from the City first enters the treatment plant. This important portion of the plant has experience significant concrete corrosion and electrical failures. This project was identified in a Jacobs Engineering Study as a priority project and has been re-affirmed as a priority project in the General Sewer Plan as project number F1. The project will involve rehabilitating the influent wetwell concrete as well as replacing all plumbing and electrical equipment. Sewer Operations (411)Design Engineering / Permitting Design Consultant (15%)Construction Construction ContractConstruction Engineering (10%)Project Management Staff Administration (10%)Project Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense Influent Wetwell Project Description ABBCD ---- 0000 0000 0000 ,,,, 0000 5555 3333 l a t o T ------ -- e r u t u F ---- 08 08 03 ,, 3,388 03 90,00090,000 99 5 2 0 2 ---- 08 08 03 ,, 3,388 03 66 260,000260,000 2 2 4 2 0 2 ll aa tt oo T T v p e x Gvoe!525!Tupsn!DJQ E R m r o t S s s r n e o o c s f i r t e r u a r s r s e o nu et s e a wi S p s p eo d l g n O O /n S n e s e t i r t m p ep d e n r t C x e x n a rao E r E ttD u FSWSGSG/F OH and Misc d n 01245 a 11119 14444 s e m r u o n t e S v e e u R n e d 4 v e 1 t e c 4 R m e l j d r a tn o o t r ou PS TTotal ExpenseF -------------------------- 50,00090,00035,00025,000 300,000300,000100,000 300,000 Total Expenditures Total Revenues - - Future Years Future Years 5,000 40,00040,00035,000 40,000 2025 Budget2025 Budget 50,00090,00020,000 260,000260,000100,000 260,000 Year EndYear End 2024 Estimate 2024 Estimate - - 2024 Budget2024 Budget 7,389 36,11836,11836,468 43,857 2024 Actual2024 Actual - - Revenues Prior Year Prior Year Expenditures 50,00050,00090,00035,00025,00025,000 300,000100,000225,000 300,000300,000 9/24 Project Budget $ $ $ $ $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities - not eligible Design Engineering / PermittingConstruction A large rain storm in the spring of 2024 excentuated a problem at Logan Street, cause a pipe failure on the bluff near Kanu Drive, and washed out a bank along SR20. An emergency declaration was passed by the City Council on April 15, 2024 to allow for design build solutions to expedite the process of addressing these three locations. The estimate at the Council meeting was a cost of at least $200,000 for this challenging work. The rate model for storm included $100,000 for Logan Street. This budget illustrates a need of an additional $200,000. This project includes the previous budgets as well as the other two locations. The Stormwater rate model includes $50,000 per year for misc. storm improvements as a contingency. This means that stormwater reserves will be dipped into in order to address this cost. Stormwater Operations (412)RH2ENGINKanu DrLoganSR20 Project Management City Administration Project Contingency Eligible for 1% for the Arts 4 Emergency Storm Repairs 2024 Project DescriptionRevenueTotal RevenueExpense AAAAABBBBBCCCCD Total Expense ------------------------------- 98,57598,57550,000 50,000 Total Expenditures Total Revenues - Future Years Future Years 50,00050,00050,000 50,000 2025 Budget2025 Budget - - Year EndYear End 2024 Estimate 2024 Estimate 50,00050,00050,000 50,000 2024 Budget2024 Budget - 70 70 2024 Actual2024 Actual - 48,57548,575 Revenues Prior Year Prior Year Expenditures -- 50,00050,00050,000 50,00050,000 Project Budget $ $ $ $ $ $ $ SubtotalSubtotalSubtotal Utilities - not eligible Design Engineering / PermittingConstruction Miscellaneous capital repairs and replacement work comes up most years. The rate analysis includes $50,000 per year of miscellaneous and unforeseen capital improvements.Stormwater Operations (412)Project ManagementProject Contingency Eligible for 1% for the Arts 4 RevenueTotal RevenueExpenseTotal Expense General Stormwater Capital Replacement, Improvements, and Repairs Project Description AAAAABBBBBCCCCD t e g d u B d e s o p t o r e P g r e d g u a B n a 5 M 2 y t 0 i 2 C PORT TOWNSEND CITY COUNCIL NOVEMBER 18, 2024 , Fleet, REET, Golf Svcs Streets, LTAC, Library, Comm – General Fund Summary2025 General Fund Operations & one time transfersFunds StaffingPolicy Updates 1.2.3.4.5. Overview $3,000.00$7,100.00$5,000.00$3,000.00$8,434.00$4,000.00 $18,000.00$10,000.00$15,000.00$27,000.00$40,000.00$18,000.00$10,000.00$75,000.00$39,787.00$10,000.00$80,000.00$75,000.00$15,000.00 $120,000.00$346,500.00$150,000.00$115,000.00 $1,194,821 time reserve projects - Website upgrade - time transfers - Equity Access and Rights - 3 admin vehicles for replacement - General Fund one Marketing/Communications SupportCommunications EAR board HR Employee recognition/appreciationHR engagement (Gallup)HR TrainingSAFETY committee budgetWELLNESS committee budgetPolice Parking lot upgradePolice Security camera/door locksPolice office furniturePolice Accreditation ManagerPCD Comp Plan SCJ Contract (Council approved) over grant revenuePCD SCJ markup and reimbursable expenses (Climate, Middle Housing, Periodic Update)1x Finance First floor office remodelPCD laptops for Housing Coordinator/Associate PlannerComm Services to fund 34 oneComm Svcs start up of Facilities ERR Capital for Evans Vista Library Capital Grant matchCapital Kah Tai RestroomsGolf course for window replacement 2.5%3.2% 7.4% -7.7%-7.2% -1.2% 186.4%400.0% 665.9% 2024 Budget MEETS POLICY 2025 Proposed vs Increase/Decrease - - - - - - - - 5,000 58.0% 96,500 96,73665,000 605,635 675,139389,504 124,621730,256 2025 1,259,500 1,356,0001,231,379 Proposed - - - - - - - - - 1,000 53.8% 33,70093,779 16,272 644,959 731,752419,902 661,230 2024 1,229,005 1,262,7051,246,433 Budget - - - -- ---- 1,199 67.9% 55,20167,697 (39,324) 644,959 892,528 948,929 577,138343,418 988,253605,635 2024 Actual - - - - - - - 8,2331,0995,823 54.4% 26,044 34,012 610,946 683,615117,116379,879 644,959 2023 1,185,069 1,220,4451,186,433 Actual - - - - - - - - 614 1,1359,849 52.9% 87,256 523,690 614,872100,869363,117 610,946 2022 1,155,744 1,166,7281,079,472 Actual Miscellaneous Revenue Beginning Fund BalanceRevenues TaxesLicenses & PermitsIntergovernmental ServicesCharges for Goods & ServicesFines & PenaltiesOther IncreasesOther Financing Sources (inc. Transfers In)Total RevenueExpenditures Salaries & Wages & BenefitsSuppliesServicesCapital OutlaysDebt Service - PrincipalDebt Service - InterestOther Financing Uses (inc. Transfers Out)Total ExpenditureNet Change in Fund BalanceEnding Fund BalanceFund Balance 5-8% of Tax Rev. Labor negotiationsCommunity Services Division Library Items to note:•• – $15,000 General Fund transfer Window replacement, gutters, maintenance 2046 - Expense no rent $10,000 for –- deposited to – Utlities 2036 2025 2025 – -- 4% of gross receipts Lease terms 2024Friends of the Golf Course20242026 2024leasehold excise tax from Friends leasehold fund.Annual $16,000 Golf Course – Objective: Balancing the Budget and Building Financial Sustainability Let’s use our Financial Sustainability work as a guide. For instance, looking in advance to future debt payment (2026), recognizing economic development and housing to create revenue to meet service demands. We aim to workshop this some on 10/14.Let’s ensure we maintain reserve balances consistent with policies. For instance, let’s not draw down reserves below policy or use them for ongoing expenses or we’ll be hiring then firing.Let’s remember and reference our strategic workplan. For instance, balancing the budget will require making tough decisions about priorities. We want to do it all but we can’t do so all at once! 1.2.3. Agenda Bill AB24-158 Meeting Date: November 4, 2024 Agenda Item: X.E Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams, Finance Director Date Submitted: November 4, 2024 Department: Finance & Technology Services Contact Phone: 360-379-4403 SUBJECT:2025City Manager PreliminaryBudget CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: Staff present the City Manager’s Preliminary 2025 Budget to City Council, with an opportunity to receive public testimony on the preliminary budget and its revenues sources as well as an opportunity to receive City Council questions, feedback, and direction to staff in advance of the first draft of the proposed budget. The first public hearing on the 2025 proposed budget will occur on November 18, 2024, with the second on December 2, 2024, and with final adoption anticipated on December 2, 2024. The 2025 budget essentially began in July 2025 with the City Council/Department Director strategic workplan retreat, focusing on how to balance both the year-on-year operational needs with the longer-term, integrated strategic thinking of the Financial Sustainability Initiative. High-Level Overview Based on previous City Council feedback from the October 7, 2024, City Council business meeting and October 14, 2024, City Council workshop, staff have focused on elements of the budget that transcend the next fiscal year and help implement the Financial Sustainability Initiative, including but not limited to the following elements: Smart seed funding for facilities repair and replacement. In the 2024 budget, we recognized that we do not plan well for facilities replacement and repair, often scrambling to find money after things inevitably break. We set aside funding to seed a repair/replacement fund to better anticipate and respond to facilities needs. This budget is the second year (of five) for investment into that fund. Smart seed funding for fleets repair and replacement.The facilities seed funding approach is working, so we are proposing a similar approach for fleets in 2025. Similarly, doing so puts fleet repair and replacement on a predictable schedule which means better predictability and financial stability. Smarter investments. The City takes in and pays out funds every day, but per policy and common sense, we need to ensure that the balance stays positive. Better financial planning means we put our balance to work earning interest, taking advantage of high interest rates and phasing the investments so we still have access to funds in case of unforeseen circumstances. Fighting off our debt. Debt is an inevitable reality for almost all cities as it helps spread longer-term investments more equitably to those who benefit. Too much debt, however, hinders our abilities to get more accomplished and the City and our community have suffered from the City overleveraging debt. Last year we paid off some debt early, but some of those payments return in 2026. This year’s budget gets a jump on those 2026 payments by setting funding aside so we don’t overextend this year. We will also, as per above, invest those funds this year while they sit in waiting for next year. Rainy-day fund. This fund strengthens our approach to preparing for unanticipated downturns and natural disasters to ensure stability of staffing and services. Putting aside one-time revenue like sales tax from major projects seeds the fund and will provide continuity when we need it most. Bold housing action. The Comprehensive Plan, a major priority for 2025, is crucial to housing availability and affordability – and fundamental to delivering financial sustainability. More residents add character and help spread the costs of services that we all depend on. Plus, more attainable housing helps local businesses –and the City – recruit and retain employees who provide important services, amenities, and local economic development. Perhaps more importantly, many of our residents suffer from the lack of affordable housing options and housing action is key to a more healthy, safe, and equitable community. Strategic staffing. Our staff size has not grown consistently with the population of residents, and we’ve been chronically understaffed for many years. Adding positions like a Parks Maintenance Worker, a Water Distribution Maintenance Worker, a Streets Operator, and a Housing Coordinator help us deliver on our core priorities. Departmental synergy. The budget includes a change in how the City organizes some of our important community services: a combined Community Services Department that incorporates Parks and Facilities teams, the Library department, and adds an arts and culture component to oversee the PT Creative District. The aim is for better, more integrated, more stable delivery of these services to our community alongside a fiscally prudent way of doing so. Major progress on infrastructure projects. With over $45m of funded infrastructure projects on the books, we continue to move forward with streets, water, sewer, stormwater, parks, facilities and other infrastructure projects that not just catch us up from years of deferred maintenance, but help take us forward in building a stronger, more resilient, and better community for us all. 2025 Proposed Budget by Section 1. Ordinance 3325 Budget Adoption a. Exhibit A – 2025 Budget by Fund b. 2024 Estimated Forecast Summary 2. 2025 City Manager Budget Message and Overview 3. 2025 All Funds Combined Summary 4. 2025 Staffing and Compensation Summary 5. City of Port Townsend Policies Notes: Salary Schedule has been updated to include five new positions, including the positions required to form the new Community Services department reconfiguration. Policy considerations as presented in the budget process are showing with track changes, which will be incorporated following adoption of the budget. ATTACHMENTS: 1. Ordinance 3343 2. Ordinance 3343 Exhibit A – City of Port Townsend 2025 Proposed Budget 3. City Manager Budget Message 4. 2025 All Funds Combined Summary 5. 2025 Staffing and Compensation Summary 6. City of Port Townsend Financial Policies, Revised 2024 (draft) 7. City of Port Townsend Purchasing Matrix – Bid Limits & Signing Authorization CITY COUNCIL COMMITTEE RECOMMENDATION: n/a. RECOMMENDED ACTION: No Action Required ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Ordinance 3343 Page 1 of 2 ORDINANCE NO. 3343 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2025 WHEREAS, the City Manager of the City of Port Townsend, Washington, completed and placed on file with the City Clerk a proposed budget and estimate of the amount of monies required to meet the public expenses, bond retirement and interest, reserve funds and expenses of government of the City for the fiscal year ending December 31, 2025 (the “2025 Preliminary Budget”), and a notice was published that the City Council would conduct a public hearing on th the 18 of November 2024 at 6:00 p.m., at City Hall for the purpose of receiving public testimony regarding thepreliminarybudget for the 2025fiscal year; and WHEREAS, the City Council held a public hearing on November 18, 2024 at which all taxpayers were heard who appeared for or against any part of the preliminary budget; and WHEREAS, following the public hearing, the City Council met in City Council Chambers on December 2, 2024, to consider the 2025 Final Budget and receive further public comment, and made adoptions and changes, as it deemed necessary and proper; and WHEREAS, the 2025 Budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City of Port Townsend for the purposes set forth in the 2025 Final Budget, and the estimated expenditures in each fund set forth in the 2025 Final Budget are all necessary to carry on the government of the City for fiscal year 2025, and are all necessary to meet the various needs of the City during the period; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1.The budget for the City of Port Townsend, Washington, for the fiscal year 2025, is hereby adopted at the fund level as set forth in the document entitled “City of Port Townsend Final Budget 2025,” a copy of which has been and now is on file with the office of the City Clerk, and by this reference is incorporated into this Ordinance. Section 2. Estimated revenues, including fund balances for working capital for each separate fund of the City of Port Townsend, and aggregate totals for all such funds combined, for the year 2025, are set forth in summary form in Exhibit A attached, and by this reference are incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the 2025 budget year. Section 3.The City Clerk is directed to transmit a certified copy of the City of Port Townsend Final Budget 2025 to the Office of State Auditor and to the Association of Washington Cities. Ordinance 3343 Page 2 of 2 Section 4. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular nd meeting thereof, held this 2 day of December 2024. _____________________________ David J. Faber Mayor Attest: _____________________________ City Clerk Alyssa Rodrigues 2025 City Manager Preliminary Budget CITY OF PORT TOWNSEND VISION A thriving community for all... CITY OF PORT TOWNSEND MISSION STATEMENT Champion aspirations for a thriving community as envisioned in our Comprehensive Plan THE 2025 CITY MANAGER BUDGET Message from the City Manager: Over the past few years, in preparing the budget for City Council consideration, the City team has transitioned away from the fear and uncertainty of the pandemic, the myopia of simply thinking about the next year ahead, and the somewhat stale, hold-over approach . If you take the time to review the previous budgets or even just the budget messages from me them evolve into something increasingly clear-eyed, strategic, and honest. This year we attempt to keep moving forward in similar fashion, with a balanced, smart, and forward- enduring success. Certainly, the team and I continue to be challenged by macroeconomic conditions beyond our control, like escalating costs of materials and labor, or local and regional conditions like seemingly impossible housing affordability. Add to that the discomfort of new or changing state and federal requirements or the accounting realities of keeping funds balanced and appropriately separated a bit on the back foot. Despite that, a persistent focus on the future of our community. Over time, we believe that, by making tough decisions and sticking together, we can make things fairer and better for everyone. Page | 1 2025 City Manager Preliminary Budget To those ends, wehaveworked for at least half a year to prepare this budget. It started at a strategic workplan retreat in July with City Council and Department Directors when we honed in on our priorities with an appropriate mix of ambition and reality. Much of that retreat focused on how to balance both the year-on-year operational needs with the longer-term, integrated strategic thinking of the Financial Sustainability Initiative. That initiative grounds us in multi-year approach to fiscal responsibility -changing We then asked each department to provide their list of budget requests that would get those priorities done multi- year financial sustainability journey. All of this was balanced against 2025 revenue predictions and our policies that require all funds to stay in the black. Many of those items Smart seed funding for facilities repair and replacement. In the 2024 budget, we recognized that we do not plan well for facilities replacement and repair, often scrambling to find money after things inevitably break. We set aside funding to seed a repair/replacement fund to better anticipate and respond to facilities needs. This budget is the second year (of five) for investment into that fund. Smart seed funding for fleets repair and replacement. The facilities seed funding approach is working, so we are proposing a similar approach for fleets in doing so puts fleet repair and replacement on a predictable schedule which means better predictability and financial stability. Smarter investments. The City takes in and pays out funds every day, but per policy and common sense, we need to ensure that the balance stays positive. Better financial planning means we put our balance to work earning interest, taking advantage of high interest rates and phasing the investments so we still have access to funds in case of unforeseen circumstances. Fighting off our debt. Debt is an inevitable reality for almost all cities as it helps spread longer-term investments more equitably to those who benefit. Too much debt, however, hinders our abilities to get more accomplished and the City and our community have suffered from the City overleveraging debt. Last year we paid off gets a jump on those 2026 payments by setting funding aside overextend this year. We will also, as per above, invest those funds this year while they sit in waiting for next year. Rainy-day fund. This fund strengthens our approach to preparing for unanticipated downturns and natural disasters to ensure stability of staffing and services. Putting aside one-time revenue like sales tax from major projects seeds the fund and will provide continuity when we need it most. Bold housing action. The Comprehensive Plan, a major priority for 2025, is crucial to housing availability and affordability and fundamental to delivering Page | 2 2025 City Manager Preliminary Budget financial sustainability.More residents add character and help spread the costs of services that we all depend on. Plus, more attainable housing helps local businesses and the City recruit and retain employees who provide important services, amenities, and local economic development. Perhaps more importantly, many of our residents suffer from the lack of affordable housing options and housing action is key to a more healthy, safe, and equitable community. Strategic staffing. Our staff size has not grown consistently with the population of residents, Adding positions like a Parks Maintenance Worker, a Water Distribution Maintenance Worker, a Streets Operator, and a Housing Coordinator help us deliver on our core priorities. Departmental synergy. The budget includes a change in how the City organizes some of our important community services: a combined Community Services Department that incorporates Parks and Facilities teams, the Library department, and adds an arts and culture component to oversee the PT Creative District. The aim is for better, more integrated, more stable delivery of these services to our community alongside a fiscally prudent way of doing so. Major progress on infrastructure projects. With over $45m of funded infrastructure projects on the books, we continue to move forward with streets, water, sewer, stormwater, parks, facilities and other infrastructure projects that not just catch us up from years of deferred maintenance, but help take us forward in building a stronger, more resilient, and better community for us all. These are but a few ideas captured in the 2025 budget. I encourage you to read through these pages, and I invite you to stay engaged in the budget process. I hope you find it a refreshing change perhaps more clear-eyed, strategic, and honest. Regardless, feel free to reach out to me with your thoughts by email at jmauro@cityofpt.us, attend one of my coffee conversations each first my regular show on KPTZ each Thursday at 12:30. Better yet, I invite you to explore and discover ways you might be able to get involved to help us deliver on our collective aspirations for a healthier, more resilient, more inclusive Port Townsend for us all. John Mauro City Manager Page | 3 2025 City Manager Preliminary Budget 2024CITY MANAGER PROPOSED BUDGET The budget is adopted at the fund level. The chart below (which represents Exhibit A to the budget ordinance) provides an overview of the revenues, expenditures, and projected ending fund balances: CITY OF PORT TOWNSEND 2025 BUDGET FUND SUMMARY 2024 Est.2025 est.2025 Projected EndingRevenueExpenseRev vs. ExpRev vs. ExpEnding Fund BalanceBudget*Budget*Y/E TargetBudgetFund Balance GENERAL FUND7,032,94316,128,91117,323,732(1,194,821)(1,194,821)5,838,122 Drug Enforc. / Contingency209,87925,000025,00025,000234,879 A.R.P.A.2,2330265,000(265,000)(265,000)(262,767) Street/Transportation Benefit Dist888,6052,660,9621,725,962935,000935,0001,823,605 Library624,7251,423,6661,398,93824,72824,728649,453 Real Estate Excise Tax1,422,664685,000510,000175,000175,0001,597,664 Lodging Tax1,350,292615,000972,751(357,751)(357,751)992,541 Fire / EMS7,77800007,778 Affordable Housing166,17192,89692,89600166,171 Community Development Block Grant180,23828,00020,0008,0008,000188,238 Community Services1,132,3943,243,6793,243,679001,132,394 TOTAL SPECIAL REV FUNDS5,984,9808,774,2038,229,226544,977544,9776,529,957 DEBT SERVICE FUND1,655,1401,114,7111,114,712(1)(1)1,655,139 General Capital1,174,817381,000818,658(437,658)(437,658)737,159 Street Capital241,8254,422,0395,445,488(1,023,449)(1,023,449)(781,624) CAPITAL PROJECTS FUNDS1,416,6424,803,0396,264,146(1,461,107)(1,461,107)(44,465) Golf Course5,09131,00031,000005,091 System Development2,658,233385,000605,906(220,906)(220,906)2,437,327 Water / Sewer Operations7,002,98511,351,00010,464,307886,693886,6937,889,678 Water / Sewer Capital10,421,51412,375,21511,044,7361,330,4791,330,47911,751,993 Storm Operations12,9901,445,0001,112,380332,620332,620345,610 Storm Capital838,570598,655602,054(3,399)(3,399)835,171 ENTERPRISE FUNDS20,939,38326,185,87023,860,3822,325,4882,325,48823,264,870 Public Works Admin495,436861,845733,201128,644128,644624,080 IT Equipment O&M / Replacement255,245542,425523,89118,53418,534273,779 Fleet Equipment O&M / Replacement1,510,2433,139,0792,928,127210,952210,9521,721,195 Engineering Services37,0701,570,7251,450,356120,369120,369157,439 Unemployment Self-Insurance15,40325,00010,00015,00015,00030,403 INTERNAL SERVICE FUNDS2,313,3966,139,0745,645,575493,499493,4992,806,895 Firemen's Pension 372,77727,5001,37426,12626,126398,903 Custodial / Refundable Deposits12,672000012,672 Memorial Fund000000 FIDUCIARY FUNDS385,44927,5001,37426,12626,126411,575 GRAND TOTAL39,727,93463,173,30862,439,148734,160734,16040,462,094 Page | 4 2025 City Manager Preliminary Budget AMERICAN RESCUE PLAN ACT The American Rescue Plan Act of 2021 (ARPA) provided $350 billion in funding for state and local governments. The City of Port Townsend was awarded $2,755,388. The first tranche of this funding, $1,373,493, was received in July 2021. The second half was received in July 2022. The funding has limited eligible uses but, in general, can be used for: Revenue replacement for the provision of government services to the extent the reduction in revenue was due to the COVID-19 public health emergency. COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, industries, and economic recovery. Premium pay for essential workers. Investments in water, sewer, and broadband infrastructure. Based on updated guidance received from the Federal Treasury in March 2022, the City determined that the best use of the funds received from ARPA is Revenue Replacement. These funds are temporary in nature and non-recurring, so care has been used in allocating these funds in ways that do not add programs that require ongoing financial commitments. In September 2021, the City Council discussed the adoption of three priority pillars when determining the programs/projects these funds would be allocated to. These pillars are 1) support staff, 2) support financial sustainability, and 3) deliver an integrated community backed vision for parks and recreation. Based on these pillars, an array of projects was presented for consideration in both 2021 and 2022. In both 2022 and 2023, all prior projects were reviewed to ensure federal guidance requirements will be met. In addition, all projects were reviewed for funding needs and project timeline. Columns were added to reflect 2024 changes and a revised 2022-2024 allocation representing the total allocated amount for the project. The funds must be obligated before December 31, 2024, and spent by the end of 2026 as specified in the ARPA Treasury guidelines. The updated project list below totals $2,755,388 and allocates both tranches of fund: Page | 5 2025 City Manager Preliminary Budget In 2022, a Special Revenue Fund was established to monitor the ARPA revenues and Office to ensure proper accounting and coding for these funds. Anticipated operating expenses and corresponding transfers are reflected in the graphs and materials presented in the budget. 2025 BUDGET ASSUMPTIONS The 2025 City Manager Proposed Budget allocates resources to initiatives included in 5 strategic workplan. This workplan was developed by staff and reviewed and workshopped with the City Council at an all-day retreat held on July 22, 2024. The 202 strategic workplan is broken down into seven major categories: Page | 6 2025 City Manager Preliminary Budget INVEST IN OUR PEOPLE Build and nurture the capacity of our staff, teams, volunteers, advisory board members, Councilmembers and partnerships and provide them the toolsets, skillsets, and mindsets to achieve more together. ENGAGE OUR COMMUNITY Build beyond notification and response to more deeply and inclusively engage our community in decisions that affect their lives and livelihoods as well as ground civic dialogue in civility and kindness. STRENGTHEN OUR FINANCIAL POSITION Set the City and community up for sustained success by deliberately choosing to build financial sustainability to address the challenges of today and prepare for tomorrow. INNOVATE OUR SYSTEMS, STRUCTURES & PROCESSES Set the City and community up for sustained success through process and structure improvements and optimization. ENVISION OUR SUSTAINABLE FUTURE AND DELIVER OUR PRIORITY INITIATIVES Deliver the 2025-2045 Comprehensive Plan and associated priorities to catalyze a financially, socially, and environmentally sustainable future. DELIVER THE BASICS Provide consistent critical operations, ongoing statutory responsibilities, and core City functions. Associated funding in the 2025 budget has been given to specific budgeted items. Staff time for many of the projects is a key component to successful completion. A summary 5 strategic workplan is included as part of the 2025 Proposed Budget Book. AFFORDABLE HOUSING Affordable Housing is a key priority for 2025 and beyond. The City continues its work to support efforts for affordable housing in the city and region. The City has made significant contributions to housing in a variety of ways. Some key examples of these contributions are: Implementation of a Sales & Use Tax for Affordable and Supportive Housing th (Substitute House Bill 1406) in the 4 quarter of 2020. This tax is a tax credit against the state portion of our City sales tax and did not increase the total amount of retail sales tax. Investment of approximately $21,000 per year; cumulative total of $70,000 through 2023. Fee deferrals for housing providers for certain permit fees and system development charges. Providers include Habitat for Humanity, Peninsula Housing, Olympic Community Action Program and Bayside Housing & Services. Total investment from 2011-2021 of $420,914. Page | 7 2025 City Manager Preliminary Budget Investment of approximately $62,000 annually for debt service payment with a total commitment over a 20-year period of $1,324,125 for total principal and interest payments. The City obtained a grant from Department of Commerce in 2021 to acquire property that will be earmarked for affordable housing Grant provides investment of $1,375,000 for the property purchase. Fourteen acres was acquired for the Evans Vista Neighborhood. The City obtained a grant from Department of Commerce in 2021 to build utility infrastructure to support affordable housing Grant provides investment of $1,700,000 for the extension of utilities to lower the cost of building affordable housing. The City secured $500,000 in 2022 to Master Plan the Evans Vista neighborhood from the Jefferson County American Rescue Plan Act funds. The City Council has also made legislative changes related to housing including: Adopted multi-family tax exemption (Ordinance 3200, 2018) provided limited or 12-year exemptions from ad valorem property taxation for qualified new multiple- unit housing in targeted areas Removed the owner-occupied requirement for Accessory Dwelling Units (ADUs) (Ordinance 3241, 2019) Adopted regulations to allow up to an eight-plex in the R-II single-family zone through a conditional use permit (Ord. 3241, 2019) Raised the maximum SEPA threshold exemption to the maximum allowable (Ord. 3241, 2019). Projects that may be eligible for SEPA exemption include single- family residential projects, up to 20 dwelling units, and multi-family residential projects, up to 60 dwelling units. Repealed modulation requirements (Ordinance 3247, 2020) Increased the size allowed for an attached ADU to 1000 square feet (Ordinance 3247, 2020) Decreased the lot size allowed in a cottage development to 2500 square feet (Ordinance 3247, 2020) Adopted regulations allowing zero lot line/shared wall construction duplexes (Ordinance 3272, 2021) Reduced the minimum lot size allowed in a Planned Unit Development to 2000 square feet (Ordinance 3272, 2021) AdoptTactical Infill Housing Code Update with $50,000 investment, which included: o Allowing two ADUs per residence, eliminated ADU parking requirements, reduced ADU setbacks, increased lot coverage for ADUs, allowed exterior ADU entrances on building front, allowed Tiny Houses on Wheels to be used as ADUs. o Reducing Cottage Housing permit as administrative without design review committee, eliminated barrier design requirements. o Reducing parking for duplex/triplex/fourplex. Relaxed parking for multifamily in mixed use. Page | 8 2025 City Manager Preliminary Budget o Creatingnew unit lot subdivision(ULS) toolto enable attached housing to be built on zero lot line and conveyed fee simple. A parent lot can be subdivi Townhouses, rowhouses, of 5 or more units allowed in R-II, R-III and R-IV zones. Townhome configurations of 4 or less exempt from design review. o Allowing ULS for cottage housing, attached fee simple housing, and Tiny House on Wheel Communities. o Allowing Tiny House on Wheel Communities with subdivision or Binding Site Plan and conditional use permit in R-III and C-II zones. o Allowing employer-provided housing with conditional use permit in certain zones to enable housing in zones where it is otherwise prohibited. (Ordinance 3306, 2023) Much of this work was made possible through a 2-year American Rescue Plan Act allocation (in 2023/24 budget and included in 2025 budget proposal) for a Long- Range Planner and a Professional Services Budget for code amendments. Adopted 2023 Annual Comprehensive Plan Updates (Ordinances 3322 and 3323), which included: o Permitting greater maximum housing density in the R-IV High Density Multifamily, C-I/MU Neighborhood Serving Mixed Use, Center C-II/MU Community Serving Mixed Use Center, and M/C(S) Mixed Light Manufacturing and Commercial Rainier Subarea zones. o Permitting higher building height in the C-I/MU, C-II/MU, and M/C(S) zones. o Specifying that height restrictions apply to habitable space, not rooftop appurtenances such as elevator towers or water towers. The previous height definition had limited the amount of habitable space since developers were constrained by the height of appurtenances that are necessary for taller buildings, such as elevators. o Permitting greater lot coverage in the R-IV, C-I/MU, C-II/MU, and M/C(S) zones. o Permitting a mixture of vertical and horizontal uses in the mixed-use zones. o Replacing Building Frontage with Minimum Commercial Space and Clear Ceiling Height Requirements in the mixed-use zones. This allows more flexibility in how mixed-use spaces are developed while still preserving the ability to rent commercial space. o Altering floor area ratio (FAR) requirements in the mixed-use zones and M/C(S) zone to encourage greater housing density. o Removing minimum lot size requirement in the M/C(S) zone. o Reducing the minimum lot width required for townhouses/rowhouses in the M/C(S) zone. o Allowing projects in the R-IV, C-I/MU, C-II/MU, and M/C(S), to substitute one developed on-street parking space for three developed off-street parking spaces. This preserves more land within lots for the development of housing, commercial space, or other non-parking amenities. It also encourages the development of the right of way. Page | 9 2025 City Manager Preliminary Budget Much of this work was made possible through a 2-year American Rescue Plan Act allocation (in 2023 budget and included in 2024 budget proposal) for a Long-Range Planner and a Professional Services Budget for code amendments. The City also worked in partnership with Jefferson County through our Interlocal Agreement to support affordable housing and homeless housing programs. The Housing Fund Board builds on collaborative efforts from the previous Joint Oversight Board and Housing Task Force to create a budget and plan for the use of collective affordable housing funds like the aforementioned Sales and Use Tax as well as other local-authority funding. This effort aims at greater participation by elected officials and greater transparency in the granting process for a more successful and coordinated program. The City continues to explore additional strategies to promote affordable housing. Grant awards totaling $788,407 for 2024 with partial funding through 2025 will support code and policy updates that will enhance and streamline housing. These grants will include considerable community engagement on how to holistically address housing and quality of life in Port Townsend. These grants include the 2025 Comprehensive Plan Periodic Update, multimodal transportation and climate resiliency, shoreline periodic update, middle housing, and urban forestry plan and tree ordinance amendment. KEY REVENUE ASSUMPTIONS for 2025 is proposed at $4,084,500, which includes the allowable statutory increase of 1.0% plus an adjustment for the value of new construction and refunds. The 1% statutory increase is budgeted at $12,190 for 2025. New construction in the city is estimated at $47 million. Property values in the city grew in the aggregate by 5.6% or $150 million. 2024 Assessed values for 2025 taxes are estimated at $2.990 Billion. The General Levy totals $2,624,898. The General Levy is allocated via internal transfers to Public Safety & General Services, Community Services (Parks, Trails, Library Lid Lift component of the levy is budgeted at $1,231,216 and is available to be used for library operations. An excess property tax assessment of approximately $150,000 related to the Mountain View Commons voted tax assessment will be levied to fund 50% of the annual debt service for this voted bond. The City had $908,724 of banked levy capacity related to the annexation of City fire services into the East Jefferson Fire District service area. The City Council adopted a post-annexation policy which allowed the City to levy the banked capacity incrementally over a 3-year period. o In 2020, the City Council adopted post-annexation policy allowed the City to levy the first 33% of the banked capacity. Due to the economic conditions during the Page | 10 2025 City Manager PreliminaryBudget pandemic, the Council chose not to levy the banked capacity in 2020 for 2021 taxes. o In 2021, the City Council adopted post-annexation policy allowed the City to levy 66%, or $602,610 of the banked capacity in 2021 for 2022 taxes. o In 2022, the City Council adopted post-annexation policy would allow the City to levy the remaining 34%, or $306,114of this banked capacity in 2022for 2023 taxes. The post-annexation policy restrictedthe use of these funds from 2020 through 2023for specific uses. The restricted banked capacity funds from both the 2022 and 2023 property taxes have been set aside for specific purpose as outlined in the post-annexation policy. As per the policy and agreement, funds are unrestricted beginning in 2024. Additional details areprovided in the Capital Improvement Projects section of the budget book. Below is a chart showing the distribution of property taxes: 2025 Property Tax Levys $4,084,500 Mountain View Voted Levy, $150,000 Library Lid Lift Levy , $1,259,500 General Levy, $2,675,000 General LevyLibrary Lid Lift LevyMountain View Voted Levy Retail Sales Taxes in 2024are projected to come in at 12%above the 2024adopted budget. A year over year comparison for the year-to-dateperiod through Septemberof sales tax data indicates that all sectors showed improvement in 2024as compared to the 2023. Page | 11 2025 City Manager PreliminaryBudget In 2025the Cityanticipates sales tax to remain on track with the 2024estimates. Below is a chart demonstrating the trend of retail sales taxes over the last five years showing the forecasted growth experienced in 2024with the expectation to maintain for 2025. Retail Sales Tax Trend $4,000,000 $3,668,405 $3,500,000 $3,228,961 $3,150,000 $3,054,244 $3,000,000 $2,537,577 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2021202220232024-est2025-Budget Retail sector as a % 2024year to date Revenue through September. 4% 1% 1% 16% 22% 3% 1% 5% 2% 3% 6% 1% 35% Other ServicesConstruction ManufacturingWholesale Trade Retail TradeTransportation / Warehousing InformationAdministrative Support Real Estate / Rental LeasingProfessional Services Health Care / Social AssistanceArts, Entertainment, and Recreation Accommodation / Food Page | 12 2025 City Manager PreliminaryBudget Business & Occupation Taxes are projectedto be above the budgeted amount of $900,000 by .8%for 2024. The 2025amount is forecast to decrease by near 16% at $918,000. Real Estate Excise Taxes (REET)revenues are projected to be $640,484or 5% decreaseunderthe 2024adopted budget. 2025REET revenues are budgeted at $650,000 based on the 2024estimate.It is difficult to forecast when large commercial properties or large dollar home sales will occur, which can disproportionately distortthis revenue source. These funds are restricted to capital improvements or debt service, dollars to make up City matching project funds. Five Year Revenue Trend Business & Occupation and Real Estate Tax $1,200,000 $1,098,382 $1,055,988 $953,406 $1,000,000 $941,896 $918,000 $895,666 $842,221 $800,000 $695,361 $650,000 $640,484 $600,000 $400,000 $200,000 $0 20212022202320242025 Utility Tax revenues in the proposed 2025budget are based on all City water, sewer, storm water and garbage services. The City imposes a 18% tax on the revenues of the a 22% utility tax on the revenues. The 2025budget is forecasted based on the continuation of the tax. Total public utility tax forecasted for 2025is $2,125,586and is intended to support all the general services of the City. Garbage service is required within the City. Garbage utility tax is slated to increase at the monthly service rate increase of 8% (contracted CPI adjustment). Page | 13 2025 City Manager Preliminary Budget Private utility tax rates are 6% of the private utility revenue. The 2024telephone and electric private utility taxes are estimated to be $910,000. The electric and telephone utility taxes are projected to increase by 2% compared to 2024 projections. State Shared Revenues are based on distributions that are shared via state revenue assessments. The City receives distributions for liquor profits and tax, criminal justice and marijuana tax distributions, fuel and multi-modal gas taxes, which primarily support Public Safety and Streets. Some of these distributions are population- population for 2023 listed by the Office of Financial Management as 10,330 (a 1.8% increase from 202010,148). 2023 projected state shared revenue is $494,250. Overhead Cost Recovery is projected to decrease by approximately $24,500, or 1.5% in 2025. The de overhead cost recovery model. The allocation model looks back two years to recover overhead costs occurring in 2022 for 2024. The slow growth revenue in 2024 is primarily the result of allocating less overhead to the Streets, Water, Sewer, and Community Funds due to increased property valuations, increasing costs of services and Council agenda bills in those funds. Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate increases outlined in the rate tables in Ordinance 3281. The City uses utility rate models provided by FCS Consulting Group, to analyze whether our utility rates fully support capital infrastructure and operations of water, sewer, and stormwater. A sewer and stormwater rate study was completed in early 2024. In 2025, the City is projected to have a total of 5,580 water/sewer accounts with 408, or 7.3%, of those projected to be commercial accounts. Below is a chart demonstrating the growth in commercial and residential water/sewer accounts from 2021 through projected 2025: Page | 14 2025 City Manager PreliminaryBudget 5600 Water/Sewer Utility Account Growth from 2021 -Projected 2024 5500 5400 408 5300 417 5200 414 5100 5000 4900 454 4800 4700 4600 5172 5036 4500 4973 4400 4618 4300 4200 4100 4000 2021202220232024 ResidentialCommercial Total water/sewer/stormwaterrevenue is forecasted to be $11,408,201as compared to $10,507,433 in 2023, or a 9% increase. As noted earlier, this represents scheduled rate increases in ordinance 3281, and 1% account growth. A rate study is currently in process and increases are anticipated following the results of the study in early 2024. In addition, total raw water revenue is forecasted for $5,043,382 as compared to $4,470,000 in 2023 or a 13% increase. Raw water sales are made to both the City and the Paper Mill. Capital Revenues provide substantial funding for general government, street and utility projects through state and federal grants and Department of Ecologyloan proceeds. A smaller amount of capital funding may be administered with inter-fund loans, transfers, bank lines of credit or other debt financing.Additional details regarding capital projects areprovided later in the budget document. Total Revenues budgeted for 2025are $60,295,678include all anticipated revenue for capital funding, operating funding,and fiduciary funds. Page | 15 2025 City Manager PreliminaryBudget 2025 Proposed Revenue by Category $60,295,678 Overhead Recovery, Licenses & Permits, $2,327,536 Other Financing $500,000 Sources (inc. Transfers Other In), $11,496,473 Taxes, $15,942,340 Increases, $52,500 Miscellaneous Revenue, $5,867,663 Intergovernmental Services, $5,124,524 Fines & Penalties, Charges for Goods & $11,900 Services, $21,850,372 KEY EXPENDITURE ASSUMPTIONS 2025Proposed Total Expenditures of $59,064,620 include all operating fund appropriations in addition to water, sewer, general and street capital funds. Page | 16 2025 City Manager PreliminaryBudget 2025 Proposed Expenses by Category $59,064,620 Debt Service - Interest, 690,286 Other Financing Uses (inc. Transfers Out), Debt Service - Salaries & Wages & 10,705,625 Principal, 1,776,468 Benefits, 15,089,392 Supplies, 1,641,451 Capital Outlays, 17,725,827 Services, 15,070,243 Labor Personnel Wages & Benefits expenses at $15,089,392or 24% of proposed operating costs. Removing internal transfers and debt service from operating costs, staffing is 31% of the total. The City continues to balance the need to retain qualified, capable staff by providing fair and competitive wages while also maintaining appropriate service levels. A salary survey was conducted in 2023 which has resulted in an updated compensation policy for non- represented employees.Recruitment of key positions willcontinueto bea challenge in 2024due to a competitive labor market and housing affordability and availability. Elected position salary and health benefits City Council Member salaries will increase based on the compensation study that was completed in the fall of 2021 by an monthlyand City CouncilMembers are eligible to enroll in health benefits as part of the elected position group. Coverage is dependent on group participation, with minimum requirements for the group plan. For non-elected positions, the 2025budget proposes a net increase of 7.9positions. There are a total of 116.8Full Time Equivalent (FTE) positions, up from a revised 2024 budget of 108.9. These consecutiveincreases (6.5in 2024and 7.9proposed for 2025) come after decreases in the prior four years(from 109.2 in 2018to 95.2 in 2022). New Page | 17 2025 City Manager Preliminary Budget budgeted positions include City Custodial, City Electrician, Streets Maintenance Worker, Assistant Library Director, Cultural Services Director, Wastewater Operator, and an increasing the Grants Coordinator for full time. The positions are outlined by departments in the chart below: Employee groups include three sectors, the Police Collective Bargaining Unit, General Collective Bargaining Unit, and non-represented personnel. The Police Collective Bargaining Unit contract did expire December 31, 2023. The contract was ratified in 2024. Recruiting and retaining officers continues to be a high Page | 18 2025 City Manager Preliminary Budget priority for Port Townsend. The 2025budget assumes full staffing and the addition of a full-time deputy police chief. The budget includes 15.0 full-time officers and 1 provisional officer. Wage increases for this bargaining unit are not included and will need to be considered as part of a future budget supplemental. The General Government Collective Bargaining Unit contract expires December 31, 2024. Negotiations for a new contract are in process at this time. With this collective bargaining agreement in place, wage rates for 2025 are contracted to increase 3.6% for both General Government and non-represented City staff. Due to current labor market conditions and higher than normal inflationary times, salary increases for staff are above average. All increases are included in the budget estimates for 2025. A salary survey was conducted in 2023. A revised salary schedule for non-represented staff has been put together with all positions placed in Grade Ranges based on current market data. Salary adjustments have been considered to bring positions within market and are included in the 2025 budget. A full list of authorized positions along with the position classification salary schedule, and more detailed budget assumptions is included in the Staffing and Compensation section of the Proposed Budget Book. Benefits offered to employees include medical, dental, vision, long-term disability, life insurance and retirement. Medical costs for 2025 are forecast to increase by approximately 7.3% for the AWC benefit plan (general government non-represented employees), less the 2.0% WellCity discount. To achieve the discount, AWC employees participate in a variety of wellness activities that promote a healthy lifestyle. The Teamsters Local 589 benefit plan, which covers both the Police and General Government union employees, is budgeted to increase 4.0% in 2025. Retirement contributions for most employees (PERS) are funded at 9.11% of eligible employee wages. The PERS contribution increased in September 2024. Police officers are covered by the LEOFF retirement system at a rate of 5.32% of eligible employee wages. This participation rate is mandated by the Washington State Retirement System. Employees also have the choice of enrolling in either the MissionSquare (formerly ICMA) or Washington State deferred compensation program which is not employer funded. The 2024 budget includes 4 Seasonal Staff for Parks and Streets maintenance. Seasonal staff are typically hired between May and October and are budgeted at an equivalent to 0.50 FTE each. Seasonal staff support spring and summer clean-up efforts in parks and maintain streets right of way. Washington State minimum wage increases in 2025 to $16.66 per hour, which is a $.38 per hour, or 2.35%, increase. This increase impacts seasonal wage rates and entry level library staff. Additionally, the increase impacts higher level position through wage compression. Wage compression occurs when pay adjustments regardless of Page | 19 2025 City Manager Preliminary Budget experience, skills or seniority increase the base wage and bring those wages closer to the wages of more senior, experienced, skilled positions. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. 2024 CAPITAL PROJECTS The proposed 2024 budget has a variety of capital projects that add new infrastructure investment and improve aging infrastructure. A breakdown of planned projects is listed in the Capital Project section of the budget. Page | 20 CITY OF PORT TOWNSEND, WASHINGTON STAFFING AND COMPENSATION SUMMARY The City of Port Townsend employs approximately 116 individuals. City employees are made up of four groups: General Government Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters Police Department Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters Non-represented management, library belong to any bargaining group Part-time and temporary/seasonal employees Compensation and benefits for the two Teamsters bargaining units are negotiated and certain wage changes, pay scales and benefit packages are administered based on the contractual agreements. The Police Collective Bargaining Unit contract expires December 31, 2026. The new agreement has been ratified. 15.0 full-time officers and 1 provisional officer were included in the budget. Recruitment for the police department has been effective. The department anticipates full staffing in 2025. Retaining officers will continue to be a priority for Port Townsend. The General Collective Bargaining Unit ratified a 2-year contract. The new contract expires December 31, 2026. Negotiations for a new agreement will be conducted in 2026. Wage rates for 2025 are contracted to increase 3.6% for City staff. 2025 wage rates for police officers will be determined with the new police contract. Due to current labor market conditions and higher than normal inflationary times, salary increases for staff continue to be above average. All known increases are included in the budget estimates for 2025. Changes to Council members compensation were considered by an independent Salary Commission during the fall of 2021. Council compensation had not been changed since 2007. Five commission members were appointed to determine whether and what changes were necessary to monthly salaries for these elected officials. The commissioners considered multiple points of data including cost of living changes during the period of 2007-2021, salaries for officials in comparable communities, time required to carry out the functions of the office, and salaries received by members of other governing boards in Jefferson County. Individual interviews with council members were conducted by the commission to better assess time commitment to the position. The November 9, 2021. levels for 2024-5 are as follows: Effective January 1, 2025 1,075 Effective January 1, 2025 each Councilm$725 Council salaries willincrease in 2026. In 2028 a subsequent Salary Commission consideration is statutorily required.The binding decision can be challenged by referendum within 30 days. The process is defined in Port Townsend Municipal Code 2.90 Salary Commission. City Council Members are eligible to enroll in health benefits as part of the elected position group.Coverage is dependent on group participation, with minimum requirements for the group plan. The 2025 budget reflects atotal of116.8 full time equivalents (FTEs) excludingCouncil members and seasonal staff. This is an increase after consecutive years of reduction (from 109.2 in 2018). The FTE countreflects an increase of7.9 positions compared to the 2024 budgeted positions. Additions include: Community Services Director Bsut!'!Dvmuvsf Coordinator Water Maintenance Worker StreetsOperator I Parks Maintenance Worker Despite these additions,s fund these service levelsare a key priority of the outcomes from the Financial Sustainability Task Force. Details on the assumptions used in preparation of the 2025 salary and benefit budget, including details regarding the proposed staff reductions, are provided below. 2025 Budget Assumptions for General Government Agreement The General Government Agreement covers Public Works, Development Services, Finance, Police Administration, and some part-time library employees. The General Government Collective Bargaining Unit contract expires December 31, 2024. Negotiations are in progress for a new contract. The General Government Agreement with the Teamsters defines the pay scales, seniority rates and annual inflationary adjustments to salaries for this group of employees. 2025 budget assumptions do not include an hourly rate increase; any wage rate increases will be determined when a new agreement is ratified, and the costs will be brought back to Council in a 2025 budget supplemental. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. The current contract calls for employees in this group to contribute 10% of the total cost of the medical benefit costs for themselves and any covered dependents, which is how the City budgeted these costs. Teamster benefit rates are budgeted to increase 4.0% in 2025. 2025 Budget Assumptions for Police Agreement The Police Agreement with the Teamsters defines the pay scales, compensated hours, seniority rates and cost of living adjustments to salaries for police officers and sergeants. The Police Collective Bargaining Unit contract expires December 31, 2026. The new contract has been ratified. 2025 Budget assumptions include a contracted hourly rate increase of 3.6%. Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 10% of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are budgeted to increase 4.0% in 2025. 2024 Budget Assumptions for Non-represented employees The non-represented employee group is made up of management and professional level staff, non-union part-time library staff, and confidential/administrative staff. This group has no formal contractual agreement and benefit and wage increases have historically been dictated by performance and availability of budget dollars. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 15% of the total cost of these benefits for themselves and any covered dependents. Medical benefit rates are forecasted to increase 7.3% which is partially offset by a 2.0% discount for WellCity designation. Employees may choose from two dental plans. The dental premiums are budgeted for no increases in 2025. There are no increases forecasted for vision benefit rates. review of both represented and non-represented was completed in 2023. Based on the results of the market study, a new grade-based system has been put in place for non- represented employees. In addition, the compensation policy has been updated and ies. The represented positions included in the salary survey are being reviewed as part of contract negotiations in 2024. The 2025 budget does not include a wage adjustment for non-represented employees, this will be brought back to council as a supplemental after the General Government Agreement has been ratified. Minimum Wage - For 2025, the minimum wage will increase $.38 or 2.35% to $16.66 per hour. This increase impacts library and seasonal wage rates. Additionally, the increase begins to impact higher level position through wage compression. Wage compression occurs when pay adjustments regardless of experience, skills or seniority increase the base wage and bring those wages closer to the wages of more senior, experienced, skilled positions. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. Recruiting Staff, Succession Planning and Best Practices The City continues to strive to foster a healthy City organization through investing in leadership development and training and adopting and implementing best employment practices. In 2022, the City Manager restructured the Human Resources Department by hiring a Director of People & Performance. This position reports directly to the City Manager and is is supported by a full time Human Resource Specialist/Generalist, a part time Human Resource Assistant as well as support from the Payroll Administrator. The Director will continue to focus on recruitment, retention, and development of City staff. Development of career pathing and City-wide training opportunities for growth will enhance the C employees and set standards for a high-performance culture. The 2025 budget adds resources for staff training and education. A total of 116.8 positions are included in the budget for 2025, not including Council members, seasonal workers, volunteer hours or accrued leave payouts. Seasonal workers consist of 2.0 FTEs or 4 short term employees to assist with Streets and Parks operations. Volunteer hours amount to approximately 3.36 FTEs and assist with police operations, library operations, and parks maintenance. A chart below shows the trend by department of authorized staffing over the last five years: Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 1 of 22 City of Port Townsend Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 2 of 22 Comprehensive Financial Management Policies Index I. FINANCIAL POLICY GUIDELINES ........................................................................ 3 II. ORGANIZATION ................................................................................................... 3 III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING ............................... 4 IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES .................................. 6 V. REVENUE POLICIES ........................................................................................... 9 VI. OVERHEAD COST RECOVERY (COST ALLOCATION) ............................... 1110 VII. GENERAL BUDGET POLICIES .................................................................... 1211 VIII. FINANCIAL PLANNING POLICIES ................................................................. 13 IX. ENTERPRISE FUNDS ...................................................................................... 14 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES ..................................... 14 XI. DEBT MANAGEMENT POLICY ..................................................................... 1514 XII. PURCHASING POLICY ................................................................................. 1716 XIII. ELECTRONIC FUNDS TRANSFER POLICY .................................................. 17 XIV. GRANTS MANAGEMENT POLICY ................................................................. 17 APPENDIX A: NVESTMENT POLICY 19 APPENDIX B: CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS & CODE OF CONDUCT20 Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 3 of 22 I. FINANCIAL POLICY GUIDELINES The financial policies outlined in this document have been developed in accordance with the These policy guidelines are intended to aid the City Council and City management in financial decision making. These policy guidelines also provide a means to test short term financial and budget decisions to help ensure the City is able to meet its immediate and long-term financial service objectives and obligations. The City of Port Townsend is accountable to its citizens for the use of public funds. Municipal resources must be wisely used to ensure adequate funding for services, future needs. These policies are designed to help safeguard the fiscal stability The City To guide the City Council and management policy decisions that have significant financial impact. To set forth operating principles which minimize the cost of government and financial risk to the City. To employ balanced, consistent, and fair revenue policies that provide adequate funding for desired programs. To promote sound financial management by providing accurate and timely To ensure the legal use of financial resources through an effective system of internal controls. II. ORGANIZATION The City provides municipal services for its citizens, including protection of life and property, public health and welfare, and improved quality of life. The City Council deems it a high priority to deliver municipal services in the manner consistent for all citizens, and with maximum efficiency and financial prudence. Budget Policy Guidelines, and through its Finance and Budget Committee, Budget Officer, is responsible to the Council for managing City operations and program services, and Budget Policy Guidelines. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 4 of 22 The Director of Finance & Technology Services Officer and Chief Auditing Officer, is responsible to the City Manager for the preparation of accurate and timely financial and budget reporting. Additional responsibilities include information technology administration, general accounting, business license/tax administration and utility billing operations, grant, federal & state funding compliance, purchasing administration, as well as policy advice to the City Manager and Council. The Department Heads are responsible to the City Manager for department operation budget observance, capital project management, and grants administration. Department Heads monitor related revenue performance and expenditure control with the assistance of the Finance Department. The City must prioritize its services and, should revenues become constrained, the following services are considered priorities in the following general order: 1. Public Life, Health, and Safety: Police, ; building inspections; and traffic control; water, sewer, and storm drainage service and streets infrastructure maintenance. 2. Legal Mandates: Accounting/auditing/financial reporting; land-use planning; required staff certifications and training. 3. City Facilities and Property: maintenance of parks, buildings, public rights of way, and City equipment (including information technology equipment); 4. Council and community goals, both annual and long-range, including strategic plan goals. III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING The City will maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall City goals and objectives are met. Accounting Records and Reporting The City will maintain its accounting records in accordance with state and federal regulations. Budgeting, accounting and reporting activities will conform to the Budgeting, Accounting and Reporting System (BARS) for Governments as prescribed by the Washington State Auditor. The City maintains its accounting and budgeting records on a cash basis and adheres to the cash basis BARS manual. Capital Assets As a cash basis entity, the City records and reports only inflows and outflows of cash. When a capital asset is purchased, the entire expenditure is recorded when the cash is expended and depreciation is not recorded. The City considers capital assets to be real and intangible assets above $7,500 in value that have an anticipated life of one year or more. Capital assets are tracked by Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 5 of 22 the Finance Department as a fixed asset inventory. Items that are no longer needed or no longer functional will be disposed according to the City surplus policy and state law. Capital assets that are purchased with grant funds may be subject to additional compliance requirements. The department obtaining the grant is responsible for understanding any compliance requirements related to acquiring, inventorying, tracking and disposing of assets obtained through these types of funds. Small and Attractive Assets - The City identifies small and attractive assets as items with a cost greater than $500 but less than $7,500. These items have a life expectancy of more than one year AND are not likely to be immediately missed upon disappearance. These items are generally mobile in nature and may be easily transported from the workplace. Some exceptions to the $500 minimum include tablets, phones, personal computers, and other lower cost items that have ongoing maintenance or service costs associated with them. Department Heads are accountable for the security of these items and are responsible for following the Small and Attractive Assets Policy and Procedures that have been adopted by Council. The Director of Finance and Technology Services (Finance Director) has oversight responsibility for this policy and the associated inventory of these items. Auditing and accountability/compliance audits in accordance with state and federal laws. Results of the audit will be provided to the Council in a timely manner. Cash Management The Director of Finance & Technology Services will ensure that cash management systems are developed to ensure accurate and timely accounting for all cash and security of all cash assets. management and investment control requires sound financial planning to ensure that sufficient revenues are available to meet the current expenditures of any operating period. The City will maintain a cash management program, which includes internal control practices for collection of accounts receivable, disbursement of funds, and prudent investment of its available cash. The Director of Finance and Technology Services (Finance Director) serves as the investment officer of the City of Port Townsend. The Finance Director is authorized to oversee the investment program and to develop operating procedures to administer the program. The Finance Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 6 of 22 Director may delegate the authority to conduct investment transactions and manage the operation of the investment portfolio to one or more subordinates as outlined in the investment program operating procedures. ocess shall act responsibly as custodians of the public trust. As permitted by law and City ordinances and to maximize the effective investment of assets, all funds needed for general obligations may be pooled into one account for investment purposes. The income derived from this account will be distributed to the various funds based on their average fund balances on a periodic basis. See Appendix A for Full Investment Policy. IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES fund basis. Funds are accounting entities used to record revenues and expenditures. By definition, balanced funds mean that total revenues equal total expenditures. The budgeted funds are grouped into categories: General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service. The following provides a brief description of the fund types and reserve guidelines for each fund. The numbers in parentheses represent the BARS manual fund series numbering scheme. GENERAL FUND (010) -- This is the primary operating fund or current expense fund of the City. the budget shall provide for an anticipated undesignated fund balance between 8% and 15% of estimated annual revenues for general government fund types. The fund balance shall be exclusive of all reserves not anticipated to be readily available for use in emergencies and contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure reductions and/or revenue increases shall be submitted by the City Manager to the Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City shall rebuild the balance within a period not to exceed three fiscal years. GENERAL FUND COUNCIL RESERVE (Included in the General Fund) In addition to the Fund balance and the Contingency Fund, the budget for the approximately 1% of estimated operating revenues in the General Fund (010). Only the General . The Council Reserve is established to provide for non-recurring community requests or unanticipated needs deemed necessary by Council. The Council Reserve shall be suspended during times of significant economic downturn, especially during years when the General Fund Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 7 of 22 ending fund balance falls below 5%. The Council Reserve is a budgeted SPECIAL REVENUE FUNDS (101-199) -- These funds account for revenues derived from special taxes, grants or other restricted sources designed to finance particular activities. Apart from any unrestricted General Fund contributions to a Special Revenue Fund, the unexpended ending fund balances carry over year to year and should retain enough revenue to cover operating cash flow and anticipated major project or program obligations of the fund. Of these funds, the Street, Library, and Community Services funds are of an operations nature. The Street and Community Services Funds reserve balance will be equivalent to 2-3% of fund expenditures. The Library Fund reserve is set at 5-8% of Library property tax revenue. Other Special Revenue Funds are more cyclical, or project related and only need retained ending fund balances or transfers in to cover anticipated obligations: Drug Enforcement, Lodging Tax, Fire/EMS, Affordable Housing, and CDBG Grants. CONTINGENCY (102) Contingency Fund is more of a strategic reserve to meet emergency conditions or to help maintain essential services during periods of economic downturn. Each fund should retain enough in its own Ending Fund Balance Reserves to offset minor non-recurring or unanticipated expenses during the budget year. Contingency Fund is intended for major events and should be maintained at no less than 2% of the General Fund annual operating revenues. If the contingency falls below 2% of operating revenue, the City will initiate a plan that will restore the balance to the required level over a three-year period. In addition to the required contingency reserves, additional funding will be added to create a Rainy-Day Fund. This is meant to buffer against unanticipated economic downturns and natural disasters. The Rainy-Day Fund will build to between 5% - 10% of General Fund annual operating revenues. The Rainy-Day Fund will be seeded through the following: Unrestricted one-time revenues from projects with assessed value at over $3m Contributions from the General Fund Reserve Contributions from the vacancy rate (see Vacancy Rate Policy) DEBT SERVICES FUND (200) These funds are used to pay general government debt. The City shall retain or transfer in funds sufficient to cover the Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 8 of 22 annual debt service obligations and with bond covenants or other loan restrictions. CAPITAL PROJECTS FUNDS (300) These funds are established for the acquisition or construction of general government (non-utility) capital improvements. Ending Fund Balance Reserves should be maintained at levels sufficient to cover anticipated annual expenditures with transfers in from supporting funds (General, REET, etc.) to cover project needs. ENTERPRISE FUNDS (400) These funds are the proprietary or - funds for operations providing services to the general public supported primarily The Ending Fund Balances of these funds should be equal to or greater than 60 days of operating expenditures and any additional amounts needed to build towards future project cash or debt payment needs. To the extent that the reserved Fund Balance and operating cash flow are not adequate to fund needed utility system improvements, additional rate increases or surcharges may be adopted by Council. Included in the Enterprise funds are Debt Service Reserve Funds, Utility Capital Project Funds and System Development Fund. Revenue bonds may be issued by the Enterprise Funds. Investors may require additional lending requirements or covenants. The ending fund balance of the Enterprise Funds should include a reserve to cover any additional covenant requirements. INTERNAL SERVICE FUNDS (500) Thes- funds for operations providing services to other City departments (funds) on a direct cost-reimbursement basis (e.g. Equipment Rental including Information Technology services and equipment and Facilities, Public Works Administration and internal Engineering Services). Fund balances should break even, after set aside of funds for future capital equipment replacements. FIDUCIARY FUNDS (600) These funds account for assets held by the City as a trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in should be maintained consistent with fund restrictions. ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: General Fund 8-15% of operating revenue Library 5-8% of property tax Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 9 of 22 Street 2-3% of expenditures Community Services 2-3% of expenditures Other Special Revenue Funds Sufficient to meet obligations Contingency . No less than 2% of operating revenue Debt Service Sufficient to meet obligations General Capital Sufficient to meet obligations Enterprise Funds 60 days of operating expenditures System Development Charges Fund Sufficient to meet obligations (Enterprise) Internal Service Sufficient to meet obligations Fiduciary Funds Sufficient to meet obligations The undesignated General Fund Balance (the balance not tied to a known project) will be maintained at a level that provides the City with sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City should not use the undesignated General Fund Balance to finance recurring operating expenditures. Annual General Fund revenues should be equal to or greater than annual regular operating expenditures. Reserves above the target can be used for new expenditures, with emphasis placed on one-time uses that achieve future operating cost reductions. General Fund revenues will be used for general government, street and community service programs only. General Fund revenue for other purposes will require approval by the City Council. General Fund revenues will not be used to subsidize utility or enterprise operations, which will be self-supporting through user rates. V. REVENUE POLICIES General Revenue Policies - The City will strive to maintain a diversified and stable revenue system to shelter the government from short-run fluctuations in any one revenue source and ensure its ability to provide ongoing service. Restricted revenue shall only be used for purposes legally permissible and in a fiscally responsible manner. Programs and services funded by restricted revenue will be clearly designated as such. One-time revenues shall support one-time expenditures. County, state or federal funding will be used to finance only those capital improvements that are consistent with the capital improvement plan and local Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 10 of 22 government priorities, and whose operation and maintenance costs have been included in operating budget forecasts. Enterprise Fund Revenue Policies Enterprise funds will be operated in a manner that maintains a minimum ending fund balance that is not less than 60 days of operating expenditures. Utilities will be self-supporting through user rates and charges. Utility user charges for each of the City utilities will be based on cost of service (i.e., set to full support the total direct, indirect, and capital costs) and established so that the operating revenues of each utility are at least equal to its operating expenditures and annual debt service obligations. The user rates of a utility shall The Utility will conduct a study of its user rates no less than every 5 years to ensure rates are adequate to fund operations and meet future needs. Fund balances may be used to temporarily offset rate increases, after sufficient funds have been accumulated for identified capital improvement needs or alternative funding for projects has been secured. Fees and Charges (Non-Utility) All fees for licenses, permits, fines, and other attendant service. Average cost or actual cost methodology may be used. These fees will be reviewed periodically and will be incorporated into the budget process for possible action by Council. Fees and charges for services will generally be set to recover the actual cost of service delivery. Fees that are set lower than the cost-of-service delivery will be reviewed at least every other year to determine if those fees are still appropriate based on City finances and the community needs. Where direct beneficiaries of a city program or services can be identified, fees will be established to recover the costs of that program or service. Fees will also be set in a manner that protects taxpayers from subsidizing special service users. A fee shall be charged for any service that benefits limited interests within the community, except for human needs type services to persons with limited ability to pay. Rental fees will be established to recover full cost of use of the property or facility. Fees related to the rental of City properties may be waived only through approval of the City Manager. The waiver of fees will only be provided if the purpose of the rental or its associated event will benefit the community at large. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 11 of 22 Some services provide greater benefit to the community. When a greater community benefit is identified, the Council may choose to subsidize, either whole or in part, such services. Park Fees Through a volunteer recruitment program, the Parks will seek to minimize the subsidy required for partial and minimum fee support programs. Solicitation of funds through donations, fund raising events, non-traditional sources, and various other modes will be encouraged by the City through its park user groups. Funds collected for any special purpose shall be earmarked for that purpose. VI. OVERHEAD COST RECOVERY (COST ALLOCATION) As provided in the State Aallocation is a method to determine and assign the cost of central services to the internal-government users of those services. Cost allocation thereby enables local governments to more accurately account for the complete cost of the services it provides to the public Included in cost allocation are direct costs (not otherwise charged to budget units) and indirect costs. Direct Costs are those costs that can be specifically identified with a particular service or unit if not already charged directly (e.g. facilities, janitorial, etc.) Indirect Costs are costs incurred for common or joint purposes, benefiting more than one unit, not readily assignable to a specific unit (e.g., legal, human resources, administration, clerk, etc.). direct charging a cost to a unit, so the City is using the most appropriate method available for doing so. However, a cost allocation plan should be designed and used to provide a reasonable, consistent and equitable means to allocate costs. Inequitable charges result in questionable charges to grant, utilities and restricted funds. For grant purposes, costs that benefit the public at large cannot be included and should follow the OMB A-87 and/or 2CFR Part 200 guidelines. The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In addition to using the overhead cost recovery model to assess the appropriate amount of overhead to utilize for establishing user fees, the model will be used to apply charges to Departments/Funds for City-wide overhead indirect cost recovery where allowed (Council, City Manager, City Clerk, City Attorney and Finance). Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 12 of 22 The Council may authorize waiver of the overhead cost-recovery in all or part if Council determines doing so will provide a general benefit to the citizens, taxpayers, or utility rate payer. If a portion of the overhead cost-recovery is waived, the General Fund must absorb these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or Enterprise Fund. VII. GENERAL BUDGET POLICIES Annual Budget strategic plan, City Council goals and priorities, the needs of the community, and federal and state laws. In general, budgeted revenues must meet or exceed budgeted appropriations each year. Current year operating expenses, maintenance costs and direct and indirect costs of services provided will be covered by current year revenues. One- time expenditures may be appropriated if one-time revenues or excess fund balance (in excess of reserve requirements) are available. The City budget appropriations are adopted at the fund level. Department heads are responsible for preparing a budget that reflects realistic expense projections and that adhere to guidelines within this policy document. Expense (Appropriation) Policies Operating expenditures will be proposed at a level that will be supported by ongoing annual operating revenues. Staffing Budget Salary operating expense. The City will strive to provide a total compensation package that is comparable to other cities and similar type positions within the same labor market or other cities of a similar size with comparable type and quality services in order to recruit and retain high quality staff. justification for any increases or decreases in overall City staffing. Union Contract negotiations may impact budget expenditures annually. However, if a collective bargaining agreement is, or will be, under negotiation, a specific amount will not be included in the budget from potential wage adjustments resulting from the negotiation, other than a base COLA adjustment. This is to Funding for unknown contract terms must be considered in balancing ongoing revenues with ongoing expenses. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 13 of 22 Equipment Replacement & Maintenance - Equipment replacement and maintenance projections will be updated each year. Replacement of items with a cost of 7,500 or more will be reviewed to time such expenditures at stable intervals to preserve cash flow, when possible. Deferment of regular repair and maintenance will not be used to balance the budget. Training and Travel City employees or others on official City business or training may be required to travel outside the City to conduct their business or training for the City. City employees and officials will be reimbursed for reasonable and customary expenses incurred in the conduct of their business for the City, including food, lodging and travel expenses while away, excluding any expenses for personal entertainment or alcoh Personnel Policies Manual for business or training travel. Such training or travel shall be as provided either specifically or generally in the annual budget. Training is employees. Allocating is recommended for certifications and skills training. The City will also include a targeted amount of 1% of City-wide salaries for organizational development and process improvement. Investments that Forestall Adding Permanent Staff - Since personnel-related funding of technology or process improvements that increase efficiency and effectiveness of the delivery of City services should receive priority funding. Budget Monitoring- The Director of Finance and Technology Services will maintain a system for monitoring the City's budget performance. This system will provide timely information to Department Heads and the City Manager to ensure accuracy of financial data and compliance with budget appropriations. The Council will receive (at a minimum) quarterly reports regarding fund level revenues and expenditure performance compared to budget. Significant financial issues that need to be addressed between regular monitoring reports will be provided to Council as warranted. The Finance Director will monitor unanticipated needs or emergency expenditures and prepare budget amendments or supplementals in compliance with State Law. VIII. FINANCIAL PLANNING POLICIES Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 14 of 22 Financial Forecast The City will develop a 5-year Financial Plan and Forecast Model based on these financial policy guidelines and a best estimate of likely revenues and expenditures. The model will be used to test the policies against likely surrounding economic conditions. The model will be used for long-range financial planning and is not a replacement for budgeting. The additional years of projected data. The City may elect to extend its planning horizon further if conditions warrant. The long-range financial plan operating revenues and expenses will include data for the General Fund, Contingency Fund, Library Fund and Community Services Fund. In addition to ongoing revenues and expenses, this forecast will utilize assumptions that forecast general obligation debt and general fund contributions to capital projects. The long-range financial plan should present trends and projections in key financial indicators, such as: Revenues and expenses per capita including nominal and inflation adjusted data. Staffing levels per 1,000 population: total and by major department. Projected annual growth rates of revenues and expenses including personnel costs. The long-range financial plan may include comparisons to other cities and benchmarks, recognizing that the data for comparable cities may reflect differences in service delivery, financial structure and financial policies. Comparative information may include: Comparative revenues and expenses by major type to include: o Total revenues and expenses per capita. o Taxes per capita by tax source. IX. ENTERPRISE FUNDS The Water, Sewer and Stormwater utilities will be managed as self-supporting business enterprises. Each utility will be managed in a professional manner in accordance with applicable laws and standards. The long-range financial plan model for each utility will analyze rate revenues, rate structure, operating costs, replacement capital costs, debt service and other utility considerations (special rate programs, paybacks, etc.). The City may utilize specialized rate consultants to evaluate the rate and cost structure of the utilities. X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 15 of 22 General Policy Considerations - The major resources for funding capital improvement and capital maintenance programs are revenues, grants and debt. Financing planned capital replacement costs are an ongoing challenge. Preparing for the challenges of infrastructure replacement or enhancements demands a long-term view of replacement needs. In order to plan for these needs the City will develop a six-year Capital Improvement Plan (CIP) for adoption by Council as required by the Growth Management Act. The CIP will be consistent with the Capital Facilities Element Comprehensive Plan. A capital project over $15,000 with a minimum of a five-year anticipated life will be included in the CIP. XI. DEBT MANAGEMENT POLICY Long Term Debt - The City will manage its long-term debt in a manner designed to utilize its credit to optimize City services while balancing overall debt levels and annual debt service obligations. Long-term debt includes Bonds, Federal or State loans (e.g. PWTF, FHA), or private placement financing. The City shall only use long-term debt for capital projects that cannot be financed out of current revenues. Annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. Debt financing will generally be limited to one-time capital improvement projects and only under the following circumstances: Debt payments shall not extend beyond the estimated useful life of the project being financed. The City shall keep the average maturity of general obligations bonds at or below 30 years, unless special circumstances arise warranting the need to extend the debt schedule. When project revenue or specific resources as identified will be sufficient to service the debt; When projects greater than $100,000 cannot be financed on a pay-as-you-go basis from anticipated cash flows. Debt financing will not be considered appropriate for: Current operating and maintenance expenses (except for issuing short-term instruments such as revenue anticipation notes or tax anticipation notes); and any recurring purpose (except as indicated above). Grant match less than $100,000 where funding is anticipated from on-going cash flow or reserve balances. Projects less than $100,000 where funding is anticipated on a pay-as-you-go basis from anticipated cash flows or reserve balances. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 16 of 22 Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Short-term debt outstanding at the end of the year will not exceed 5% of net operating revenue (including tax anticipation notes but excluding bond anticipation notes.) -voted) General Obligation (LTGO) Debt Capacity per State Law is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt Capacity for unforeseeable catastrophic emergencies. Bond Anticipation Notes (BANS) Tax Anticipation Notes (TANS) Lines of Credit with major financial institutions Interfund Loans Short Term Debt Transfers and Interfund Loans General Fund transfers to other funds are intended as payments for the support of specific programs or services. Amounts not needed to support such specific program or service expenses will remain in For example, the General Fund may make transfers to the Debt Fund to fund annual debt service payments or to the Community Services Fund to support parks or service programs. Interfund loans are temporary in nature. The requirements for interfund loans are as follows: The Council must approve all interfund loans by resolution. The resolution will include a planned schedule of repayment of the loan principal as well as setting a reasonable rate of interest to be paid to the lending fund. The borrowing fund must reasonably be able to anticipate sufficient revenue to repay the principal and interest payments as required by the authorizing resolution. were otherwise invested, such as the LGIP (Local Government Investment Pool) rate or a bank CD rate for a similar term; not higher than the external rate available to the municipality. Interest is not required in the following circumstances: o If the borrowing fund has no independent source of revenue other than the lending fund; o The lending fund is the General Fund, which, being unrestricted, can provide interest free loans to other funds. The term of the interfund loan will not exceed three years. Any interfund loans that are not repaid within three years will be moneys. (Note: These restrictions and limitations do not apply to those funds Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 17 of 22 which are legally permitted to support one another through appropriations, transfers, advances, etc.) For short-term cash deficits in non-General Fund operating funds during the course of the year, City interfund loans are preferable to outside short-term or private sector lines of credit. XII. PURCHASING POLICY Purchases of goods, services and capital items will be made consistent with the Any purchases or contracts above those authority limits must be authorized in advance by City Council (some exceptions for public emergencies will apply). The City Manager may delegate spending authority (within his/her limits) to Department Heads to facilitate operating efficiency. The City Manager and Department Heads purchase goods and services at a reasonable cost, using an open, fairly documented and competitive process whenever reasonable and possible. The Director of Finance & Technology Services (Finance Director) is charged with developing administrative/operating procedures to implement sound purchasing policies. These procedures will be based on guidelines provided in State Law and All purchases made by the City will ultimately be approved by the Council through the voucher approval process. XIII. ELECTRONIC FUNDS TRANSFER POLICY Electronic payment methods are a safe and efficient method to process disbursements and receive payments for City business. City policy is to establish the best methods to process payments to employees and vendors. In addition, City policy is to establish the best methods to receive payments from customers and vendors. Electronic payment methods may include Electronic Funds Transfer (EFTs), Automated Clearing House (ACH), Wire Transfers, credit card and debit card. The Director of Finance & Technology Services (Finance Director) will maintain administrative/operating procedures to manage sound electronic fund transfer policies and procedures. XIV. GRANTS MANAGEMENT POLICY Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 18 of 22 Leveraging City and community resource with external financial assistance can enhance the quality and level of public services, facilities and infrastructure. City Policy is to seek and accept grants and other financial assistance consistent with External assistance also carries with it the goals and restrictions of the grantor. Grant relationships are partnerships where the goals of both the City and grantor must be in alignment. The benefits, costs and long-term implications of the partnership must be considered prior to formal application. Management Policy involves the following steps: Search City department staff and officials are encouraged to actively search out Pre-Application Department Directors and staff shall pursue grants within their purchasing authority identified in City Purchasing Policies. The City Manager shall be advised of all grant considerations over a $10,000 total. Formal Application Formal applications directly by the City, or indirectly by other agencies involving the City, must fall within Departmental Purchasing levels. All grants will seek reimbursement of direct cost departmental and City wide indirect or administrative costs to the maximum extent allowable by the grantor. Grants by other agencies involving the City or by the City involving other grantees must have City Manager, or Council approval beyond the $60,000 Purchasing levels. Award and Contract Upon formal Notice of Grant Award (NOGA) or informal notification, a written contract must be approved prior to any City commitment, formal or otherwise. levels. Any needed budget amendments for grant match not otherwise within general budget authority shall be adopted prior to formal grant acceptance and contract signing. Accounting and Reporting City departments shall coordinate with Finance to assure that grants comply with Federal, State and local requirements for timely reimbursements, monitoring of vendors and sub recipients, as well as City Purchasing Policies. Any notification of audit of grant programs or funds should be sent to the Director of Finance & Technology Services even if the audit is coordinated in another department. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 19 of 22 Close Out Multi-year grants shall have periodic accounting reviews not less than at the close of each fiscal year. Upon conclusion of each grant, the Department grant manager shall prepare a grant close-out report in coordination A complete grants management file record shall be maintained per City policy, either in the Department, Finance or Clerks Office. The City Council Adopted Federal Awards Standards, Procurement Policy and Code of Conduct Policy for all Federal Loans and Grants on July 10, 2017. Standards for federal awards are detailed in Appendix B. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 20 of 22 XV. VACANCY RATE POLICY As part of the annual budget process, the Vacancy Rate Policy requires setting a vacancy rate based on an assessment of market conditions and vacancy rate trends. The rate would then be used to calculate an equivalent General Fund savings from unspent employee salaries and benefits, from which eligible expenses can be funded up to those savings. Expenses must have direct nexus to the impacts of or mitigation of staff vacancies, including: Employee engagement programs facilitated through the People & Performance Department Staff training Short-term contracts of less than 6 months duration Seeding the Rainy-Day Fund At least 20% of the Vacancy Rate savings, should there be any, is recommended go to seeding of the Rainy-Day Fund. APPENDIX A: INVESTMENT POLICY To the extent possible, funds not needed for operations should be invested in approved investment vehicles. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investments officials shall be the prudent person standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with written procedures and the investments policy and exercising due diligence shall be relieved of personal e changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The City will strive to maximize the return on its investments, with the primary objective of preserving capital and prudent investment practices, including diversification. Investments will be made in accordance with the following objectives: 1) Legality: Funds of the City will be invested in accordance with the Revised Code of Washington (RCW), the BARS manual, these policies and any applicable administrative procedures. 2) Safety: Investments of the City will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 21 of 22 diversification is required in order that potential losses on individual securities do no exceed the income generated by other investments. 3) Liquidity: to meet all operating requirements that might be reasonably anticipated. 4 market rate of return throughout budgetary and economic cycles, taking into The Director of Finance & Technology Services (Finance Director) will approve financial institutions to be eligible to conduct investment business with the City, in accordance with Washington State Law. The Director of Finance & Technology Services (Finance Director) will periodically furnish the City Manager and Council with a report that shall include the amount of interest earned to date. At least annually, a report summarizing investment activity and rate of return will be provided. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 22 of 22 APPENDIX B- CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS, & CODE OF CONDUCT CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS PURPOSE Establish and maintain internal controls that provide reasonable assurance that Federal awards are being managed in compliance with all federal regulations and with the terms and conditions of the award. The City of Port Townsend will follow the Uniform Guidance, the Local Agency Guidelines (LAG) distributed by The Washington State Department of Transportation (WSDOT), and the City of Port INTERNAL CONTROLS The City of Port Townsend will maintain effective internal control over the Federal award providing reasonable assurance that the City of Port Townsend is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass- through entity designates as sensitive. ADVANCE PAYMENTS AND REIMBURSEMENTS Payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the City of Port Townsend whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Advanced payments must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the City of Port Townsend to carry out the purpose of the approved program or project. Any advanced payments must be consolidated to cover anticipated cash needs. The City of Port Townsend shall minimize the time elapsed between receipt of federal aid funds and subsequent payment of incurred costs. ALLOWABLE COSTS Federal awards will meet the following general criteria to be allowable except where otherwise authorized by statute: Be necessary and reasonable for the performance of the Federal award; Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 23 of 22 Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items; Be consistent with policies and procedures that apply uniformly to both Federally- financed and other activities of the City of Port Townsend; Be accorded consistent treatment; Not be included as cost or used to meet cost sharing or matching requirements of any other Federally-financed program in either the current or a prior period; Be adequately documented. SINGLE AUDIT ACT The City of Port Townsend, as a recipient of Federal funds, shall adhere to the Federal regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State statutes and regulations. CLOSURE A project agreement end date will be established in accordance with 2 CFR §200.309. Any costs incurred after the project agreement end date are not eligible for Federal reimbursement. Comprehensive Financial Management Policy Guidelines Adopted December 4, 2023 Page 24 of 22 CITY OF PORT TOWNSEND CODE OF CONDUCT PURPOSE The purpose of the Code of Conduct is to ensure the efficient, fair and professional administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR §200.318 and other applicable federal and state standards, regulations, and laws. APPLICATION This Code of Conduct applies to all elected officials, employees or agents of the City of Port Townsend engaged in the award or administration of contracts supported by federal grant funds. REQUIREMENTS No elected official, employee or agent of the City of Port Townsend shall participate in the selection, award or administration of a contract supported by federal grant funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award: The City employee, elected official, or agent; or Any member of their immediate family; or Their partner; or An organization which employs or is about to employ any of the above. The City of Port Townsend's elected officials, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors or subcontractors. REMEDIES To the extent permitted by federal, state or local laws or regulations, violation of these standards may cause penalties, sanctions or other disciplinary actions (up to and including employment or contract termination) to be taken against the City of Port Townsend's elected officials, employees or agents, or the contractors, potential contractors, subcontractors or their agents. Any potential conflict of interest will be disclosed in writing to the Federal awarding agency or pass- through entity in accordance with applicable Federal awarding agency policy. COUNCIL COMMITTEE ASSIGNMENTS Updated August 20, 2024 COUNCIL STANDING COMMITTEES st Infrastructure and Development (1 Wed. 3pm Virtual/Chambers) ---------------------- DF, MM, NN nd Culture and Society (2 Wed. at 3pm, Virtual/Chambers) --------------------------------- AH, OR, BT rd Finance and Budget (3 Wed. 3pm / Virtual/Chambers) ----------------------------------- LW, AH, MM Intergovernmental Collaborative Group (Board of Commissioners) ---------- Council of the Whole CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee -------------------------------------------------- Unassigned Lodging Tax Advisory Committee (LTAC) ----------------------------------------------------------------- OR OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES Economic Development North Olympic Peninsula Resource Conservation & Development Council (NODC) ------------ MM Health Jefferson County Board of Health --------------------------------------------------------------------------- MM Jefferson County Developmental Disabilities Advisory Board ---------------------------------------- OR Jefferson County Clean Water District Advisory Council ----------------------------------------------- MM Jefferson County Behavioral Health Committee---------------------------------------------------------- NN Jefferson County Solid Waste Facilities Task Force ---------------------------------------------------- OR Housing Housing Fund Board ----------------------------------------------------------------------------------------AH, NN Infrastructure Public Infrastructure Board ------------------------------------------------------------------------------------- DF Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee -------------------- MM Transportation Jefferson Transit Authority Board ----------------------------------------------------------------------- BT, DF Peninsula Regional Transportation Planning Organization Executive Board------------ BT (DF Alt) Surface Transportation Block Grant (STBG) Selection Committee------------------------------------DF Other Climate Action Committee ------------------------------------------------------------------------------------- OR Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board ------------------- DF JeffCom Administrative Board ------------------------------------------------------------------------------ Staff OlyCAP Board of Directors ------------------------------------------------------------------------------------ AH Joint Growth Management Steering Committee----------------------------------------------------- DF, BT Jefferson County FEMA funds (Dove House Advocacy Services, administrative agency) --------- Port Townsend Main Street HUD Loan Committee ------------------------------------------------------ AH Creative District -------------------------------------------------------------------------------------------------- OR Fort Worden Public Development Authority --------------------------------------------------------------- LW Jefferson Broadband Action Team ------------------------------------------------------------------------- LW Team Jefferson Economic Development Council (EDC) ----------------------------------------------- MM Jefferson County Fairgrounds Board -------------------------------------------------------------------------BT Agenda Bill AB24-166 Meeting Date: November 18, 2024 Agenda Item: XI.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Steve King, PW Director & Bliss Morris, Wastewater Operations Manager Date Submitted: May 1, 2024 Department:Public Works Contact Phone:360-379-5090 SUBJECT: Public Hearing for Ordinance 3342 Adopting the General Sewer Plan, Providing for Severability, and Establishing an Effective Date CATEGORY: BUDGET IMPACT:N/A Consent Resolution Expenditure Amount: Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: 411 Water Sewer Fund - General SUMMARY STATEMENT: Background: The City of Port Townsend is at the final stage of completing the General Sewer Plan update. The Plan has been updated in its entirety given it has been over 20 years since the last update. On May 6, 2024, the City Council approved the draft plan and supported staff in the submittal of the plan to the Department of Ecology for review. A detailed description of the plan was provided at that meeting and is available as reference material at https://cityofpt.granicus.com/GeneratedAgendaViewer.php?view_id=4&clip_id=3141. th The following is an excerpt from the May 6 agenda report: The City’s sewerage system has developed from the City’s initial development in the 1800’s. Sanitation was initially developed for public health and control of disease. In the last 70 years, a focus on environmental protection has been added to the equation. Now the City operates a sewer system that accomplishes both public health. The City is nearing completion of the update to the General Sewer Plan. Based on much review of the plan over the last couple of years, this action item is to adopt the plan and forward to the Department of Ecology for final review. The outdated 2000 general sewer plan was well overdue for an updated in order to prioritize investments in the City’s extensive sewerage system while planning for the next 20 years. The City Council authorized a contract with RH2 Engineering on February 16, 2021, to begin the update process, essentially creating a new General Sewer Plan. While this process has taken some time, it has allowed for a thorough analysis including changing conditions such as the issuance of the Puget Sound Nutrient General Permit. Thus, the contract was expanded to include analysis of the Wastewater Treatment Plant associated on January 3, 2022. At the City Council workshop in May of 2022 for the General Sewer Plan Update, staff introduced the scope of the project. An additional supplement was issued to the contract with RH2 Engineering to add an analysis of the septic receiving and treatment system at the compost facility. Council approved an interlocal agreement with Jefferson County on September 19, 2022, to provide for the County’s contribution to evaluating options for expanding capacity of the septage receiving facility. On August 14, 2023 staff and RH2 Engineering provided a comprehensive review of the th General Sewer Plan findings. On January 8 at the City Council workshop, extensive review of the final draft plan was provided with the help of RH2 Engineering and Financial Solutions Consulting Group for discussion and feedback. The workshop also provided an opportunity to look at sewer rate impacts since the plan projects the cost of operating a sewer system on behalf of the residents, businesses, and visitors of Port Townsend. Finally, rate ordinances were thth considered at the February 5 Council Business meeting, the February 12workshop, and the th Council Business Meeting. Rates were adopted to support the General Sewer Plan February 20 along with a low-income discount program and a rate structure adjustments as analyzed and prepared by Financial Solutions Consulting Group. The rates are effective April 1, 2024 and include increases through the next 5 years to pay for the improvements and operations of the sewer system. For background, please refer to the City Council archives at this web address https://cityofpt.us/citycouncil/page/agendasminutesvideos. Additionally, information is available on the City’s engagePT website at https://cityofpt.us/engagept/page/general-sewer-plan along with a video overview of the City’s sewer system at https://www.youtube.com/@CityofPortTownsend/videos. Following the May 6, 2024 meeting, the draft plan was submitted to the Department of Ecology. The Department responded with the following minor comments: 1. In Table 1-2, DMR is an acronym for “Discharge Monitoring Report”. 2. In Chapter 2 section WWTF Puget Sound Nutrient General Permit, please include reference to Permit No. WAG994538. 3. Please include a distinct Topography Map within the body of the General Sewer Plan. Figure 2-2 does show topography, yet it is difficult to discern the terrain. It would be helpful if Figure 3 from the 2019 Stormwater Management Plan was inserted within the GSP as well. 4. The SEPA plan would need to be submitted prior to approval of the GSP. On October 8, 2024, a SEPA Determination of Non-significance for a non-project action of adoption of the General Sewer Plan was published. No comments were received. SEPA documentation is included in Appendix The only other change to the General Sewer Plan since the May 6, 2024 draft is the inclusion of updated standard details in Appendix G. These details are a work in progress and will be part of the Engineering Design Standards Update. One key point is that this General Sewer Plan acknowledges limited use of low pressure sewer systems. The Department of Ecology generally discourages low pressure sewer systems; however, in limited situations they may serve as the only reasonable way to provide sewer service to properties where gravity mains are not feasible. Based on the information provided staff recommends City Council confirm the May 6, 2024 approval and adopt the General Sewer Plan by ordinance. ATTACHMENTS: 1. General Sewer Plan CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: Move to approve the first reading ofOrdinance 3342 Adopting the General Sewer Plan, Providing for Severability, and Establishing an Effective Date. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Ordinance 3342 Page 1 of 4 Ordinance No. 3342 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING THE GENERAL SEWER PLAN, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the City of Port Townsend has adopted a Comprehensive Plan and has amended it in accordance with the requirements of the Growth Management Act (“GMA”) (Chapter 36.70A of the Revised Code of Washington); and WHEREAS, the GMA requires that capital facilities for infrastructure be planned and built to accommodate growth and meet requirements for environmental protection; and WHEREAS, the current City of Port Townsend General Sewer Plan adopted in 2000 is in need of updating; and WHEREAS, the General Sewer Plan update provides planning level analysis of the City’s Wastewater Treatment Plant, Biosolids Facility, and sewer collection system; and WHEREAS, the City began analysis of the sewer system in 2021 with the assistance of a consultant, RH2 Engineering; and WHEREAS, the updated General Sewer Plan addresses changes in regulations, existing infrastructure condition and upgrade needs, as well as growth consistent with the Growth Management Act and the 2016 adopted City Comprehensive Plan; and WHEREAS, the General Sewer Plan includes a projected Capital investment analysis as well as operational projection necessary for the next 20 years; and WHEREAS, Financial Solutions Consulting Group developed an updated rate analysis to pay for the infrastructure investment identified in the Capital Plan and to ensure adequate funds to operate the sewer system to comply with State permit requirements, State laws, and the Federal Clean Water Act; and WHEREAS, the City Council adopted new sewer rates effective April 1, 2024 to support implementation of the updated General Sewer Plan; and WHEREAS, the General Sewer Plan complies with the requirements of RCW 90.48.110 and WAC 173-240-050. Prior to implementation of the Plan, the Department of Ecology must review and approve the General Sewer Plan; and WHEREAS, the City adopted the draft General Sewer Plan by resolution on May 6, 2024 and forwarded to the Department of Ecology for review on; and WHEREAS, the Department of Ecology requested minor edits of which have been incorporated; and Ordinance 3342 Page 2 of 4 WHEREAS, the City issued a determination of non-significance for non-project action following review by the Department of Ecology on November 6, 2024and no comments were received; and WHEREAS, a public hearing was held on November 18, 2024 to provide additional opportunity for public comment; and WHEREAS, final adoption of the General Sewer Plan includes the General Sewer Plan in the City’s Comprehensive Plan by reference and will be incorporated into the City’s Comprehensive Plan Periodic Update. NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. Findings and Conclusions. The proposed General Sewer Plan is consistent with the currently adopted Comprehensive Plan, and is in the public interest. Section 2. Adoption. The City adopts the General Sewer Plan as a functional plan of the City as substantially shown in Exhibit A and incorporated herein by this reference. Section 3. Severability. If any sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase or work of this ordinance. Section 4. Transmittal to Department of Commerce. The City Clerk shall transmit a copy of this Ordinance to the State Department of Commerce (DOC) within ten (10) days of adoption of this ordinance. Section 5. Effective Date.This Ordinance shall take effect and be in force 5 days following its publication in the manner provided by law. Ordinance 3342 Page 3 of 4 ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 2nd day of December 2024. _________________________ David J. Faber Mayor Attest: ___________________________ Alyssa Rodrigues City Clerk Ordinance 3342 Page 4 of 4 Exhibit A General Sewer Plan Agenda Bill AB24-168 Meeting Date: November 18, 2024 Agenda Item: XIII. Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Emma BolinDate Submitted: 11.13.2024 Department: PCD Contact Phone: 360-390-4048 SUBJECT: Letter of Support for Jefferson County expansion of the UGA to include publicly-ownedparcels of public purpose uses, including the Caswell-Brown Village for housing services. CATEGORY:BUDGET IMPACT: ConsentResolutionExpenditure Amount: $ Staff ReportOrdinanceIncluded in Budget? Yes No Contract Approval Other: Discussion Item Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: The Caswell-Brown Village (CBV) serves as a cornerstone for addressing homelessness and housing insecurity in our community. Owned by the County and operated by the Olympic Peninsula Community Action Programs (OlyCAP), CBV provides essential emergency shelter, transitional housing, and supportive services for individuals facing homelessness. The facility is approved by Jefferson County to operate a 50-bed emergency shelter and 40-lot housing park consisting of safe RV parking and tiny shelters and is central to regional efforts to improve housing security. The County’s proposal to expand the City’s Urban Growth Area (UGA) to include CBV would enable vital infrastructure connections to the City’s sewer system, further supporting CBV’s capacity to meet these pressing needs. Recent amendments to the Growth Management Act (GMA) allow for urban service extensions to support public-purpose uses in urban areas, such as CBV. The City’s endorsement of this expansion is critical to sustain CBV’s services, meet regional housing goals,and position the project to apply for key infrastructure funding, such as the Connecting Housing to Infrastructure Program (CHIP) grant. Eligibility for the CHIP grant depends on the site being located within a UGA. The location of the UGA boundary for Port Townsend has never been changed since adoption of GMA. The UGA boundary is a County actionper GMA andinformed byCountywide Planning Policy. The letter of support seeks Council’s endorsement of the UGA boundary expansion. The letter notes the City’s process to adopt key changes in its Capital Improvement Plan and General Sewer Plan that support sewer extension and connection to the proposed parcels. The process culminates in Board of County Commissioner decision on the County’s 2024 Comprehensive Plan annual amendments. The City will docket any map changescoincident with the 2025 Comprehensive Plan Periodic Update. The letter of support underscores the City’s commitment to partnership on housing issues, reinforces intergovernmental collaboration, and strengthens the case for securing infrastructure funding critical to CBV’s long-term operations.The UGA expansion will meet a regional community need for emergency shelter, align with GMA, UGA, and CWPP policies, serve infrastructure efficiently while reducing the impact that Large Onsite Septic Systems have on the environment, and support funding for state funding. ATTACHMENTS: 1. Jefferson County 2024 Comprehensive Plan Amendment Docket Supplemental Staff Report and SEPA addendum 2. Draft Letter of Support CITY COUNCIL COMMITTEE RECOMMENDATION:N/A RECOMMENDED ACTION: Move to approve the letter of support endorsing County County’s proposal to expand the City’s UGA boundary to include Caswell-Brown Village (CBV) and the additional stated parcels and authorize the Mayor to sign the letter on behalf of the City Council. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 JEFFERSON COUNTY DEPARTMENT OF COMMUNITY DEVELOPMENT 2024 COMPREHENSIVE PLAN AMENDMENT DOCKET SUPPLEMENTAL STAFF REPORT AND SEPA ADDENDUM Supplemental Staff Recommendations with Environmental Analysis for the Adoption of Proposed Amendments to the Jefferson County Comprehensive Plan October 10, 2024 INTEGRATED GROWTH MANAGEMENT ACT/ STATE ENVIRONMENTAL POLICY ACT DOCUMENT Environmental Review of a Non-Project Action: Addendum to Existing Environmental Documents 1 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Contents: 1.Modifications to Proposed Amendment 2: UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, Swapping Farm Land with Caswell-Brown Village and Adjacent Properties. New proposed description: ”Proposalto expand the Port Townsend Urban Growth Area (UGA) boundary to include publicly-owned parcels for public purpose use, including the Caswell-Brown Village for housing services.” 2.Modifications to Proposed Amendment 4: Review of Land Use and Zoning in the Jefferson County Airport Essential Public Facility (AEPF”) 3. Attachment –Comment Record 2 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Why is there a Supplement? Changes and Additions to the September 4, 2024 Comprehensive Plan Amendment Docket—Combined Staff Report and SEPA Addendum (“the Staff Report”) The Staff Reportwas published on September 4, 2024. The Staff Report evaluated four proposed amendmentsto the development regulationson the 2024 Amendment Cycle docketthat are listed below: Proposed Amendment 1: Irondale and Port Hadlock Urban Growth Area (“PHUGA”) UDC Amendments for Urban Development Proposed Amendment 2: UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, Swapping Farm Land with Caswell-Brown Village and Adjacent Properties Proposed Amendment 3: 2024 Annual Amendment Cycle, Planning Commission UDC Rural Housing Amendments Carried Forward from 2023 Proposed Amendment 4: Review of Land Use and Zoning in the Jefferson County Airport Essential Public Facility (“AEPF”) Modifications to Proposed Amendments2 and 4 created a need for focused evaluation of those changes and further documentation in this Supplemental Staff Recommendationswith Environmental Analysis(“this Supplement”), dated October 10, 2024. For a complete analysis of Proposed Amendment2 and Proposed Amendment4, the reader needs to consider both the Staff Report and thisSupplement. Not all of the details withinthe Staff Report arereproduced here. ThisSupplement strives to include additional information and not restate what is in the Staff Report.However, the entire Cumulative Impacts Analysis table and SEPA Non-Project question responses are included from the Staff Report,amended here as needed. Proposed as findings for final Boardof County Commissioner’sactionalso are included in thisSupplement. Public Process Summary A combined Notice of Intent to Amend (“NOIA”) the Comprehensive Plan and Unified Development Code, Notice of SEPA Determination, and Notice of Public Hearing at the Planning Commission was published on September 4, 2024. On September 18, 2024the Planning Commission conducted a public hearing on theamendment docket. Only one public comment was received: Eric Toews, Deputy Director, Port of Port Townsend, provided comment on Proposal #4 and submitted testimony (ExhibitA) with recommended changes to the Port’s proposal to clarify proposed text amendments and modify the Airport Overlay III expansion by reducing the area. After the hearing was closed, the Planning Commission deliberated on the 3 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 docketed proposals, and arrived at a recommendationto accept the proposals, with the changes summarized below. Next steps in the public process areto forward the Staff Report and this Supplement, along with the Planning Commission Recommendations, to the Board of County Commissioners.It is anticipated this will occur in late October. Summary of Changes Proposed Amendment 2:There were optional paths to include Caswell-Brown Village (“CBV”) in an Urban Growth Area (“UGA”) in order to provide appropriate services to the project: a UGA land swap following recent GMA provisions of RCW 36.70A.110, or extension of the Port Townsend UGA boundary. The UGA land swap did not come to fruition. This Supplement provides additional findings supporting the extension of the Port Townsend UGA boundary. Proposed Amendment 4:The proposed extent of Airport Essential Public Facility (“AEPF”) Overlay III has beenreduced to include only property owned by the Port of Port Townsend, and some text amendments that appear in the Staff Report have been supplementedor clarified. Generally, the AEPF is expanded by the addition of two 6-acre parcels, and the AEPF Airport Overlay IIIis expanded by those specific areas in the AEPF which are south of, and outside of, the FAA building restriction line, and an approximately 6.5-acre area in the northeast of the AEPF. The Airport Overlay III consists of parcels, or portions of parcels, currently owned by the Port of Port Townsend within the AEPF. The requirement for a Binding Site Plan (“BSP”) process is replaced with a requirement to meet all development regulations, recognizing that a BSP may not be applicable in all circumstances. As the Airport Overlay III is further developed, a unifying plan for the overlay area will be accomplished.The access from Four Corners Road, parcel APN 001334004, is not being added to the AEPF. Additional details are provided in the analysis below. SEPA Threshold Determination After review of the modifications of Proposed Amendments 2 and 4, Community Development has determined that there will be no changes to the overall cumulative impact analysis for all of the proposed amendments, and the SEPA threshold determination is unchanged from the Staff Report: there will be no probable significant environmental impacts as a result of this action and a threshold Determination of Nonsignificance, “DNS”, is supported. The 2024 Comprehensive Plan & UDC Amendment Docket documentsare available on the JeffersonCounty webpage dedicated to the 2024 Comprehensive Plan Annual Amendment cycle process. https://www.co.jefferson.wa.us/1721/2024-Annual-Amendment-Cycle 4 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 ANALYSIS OF MODIFIED PROPOSED AMENDMENTS Updated Summary Matrix of Impacts and Mitigation Measures Refer to the Staff Report for the complete description of the proposals, cumulative analysis of impacts, and overall recommendation for mitigation measures and conditions. Proposal-specific analysis is also within the individual staff reports for each of the proposed amendments found in Section 2, “Focused Analysis of the Proposal” of the Staff Report. Readers are encouraged to review the more comprehensive discussion of issues of interest in Section 2, “Focused Analysis of the Proposal”, and to consult the Appendix Items, the amendment applications themselves, and other supporting materials, in order to formulate the most accurate impression of impacts associated with the proposals and staff recommendations. Amended Table 1: Revised SEPA Impact Analysis and Mitigation Summary (see p.15 of theStaff Report). 2024 Irondale and NoRecommendation –None. This is not a site- 1Port Hadlock UGA UDC specific project proposal. Site-specific Amendments for information will be provided by applicants at urban development.the time of submittal for a project. 2024 UGA CP & UDC NoRecommendation –There are no proposed 2Amendments to mitigations or conditions with this proposal. Amend the Port Townsend Urban Growth Area Boundary. 2024 Annual NoRecommendation –adopt suggested UDC 3Amendment Cycle, amendments for “Family” definition, Planning Commission clarification to PRRD unit count, and addition UDC Rural Housing of CongregateHousing to JCC 18.15.040Table Amendments Carried 3-1 uses. Forward from 2023. Continue work on rural housing strategies concurrently with data development for 2025 Comprehensive Plan update. Review of Land Use NoRecommendation–At this phase of review, 4and Zoning in the there are no proposed mitigations or Jefferson County conditions. All future development will be Airport Essential required to meet the County’s zoning and Public Facility (“AEPF”)development standards of the Jefferson County Code. 5 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Amended Table 2: Revised Significant Areas of Controversy & Uncertainty (pp.16-17 of the Staff Report) The following table summarizes the key environmental issues and options facing decision- makers: # APPLICATION AREAS OF CONTROVERSY AND UNCERTAINTY NUMBER & DESCRIPTION 2024 Irondale and None 1 Port Hadlock UGA UDC Amendments for urban development. 2024 UGA CP & No areas of controversy. Findings aremade in the Supplement to expand a 2 UDC Amendments UGA boundary. There issufficient justification and analysis to extend the to Amend the Port UGA boundary to include Caswell-Brown property for access to City of Port Townsend Urban Townsend services. Growth Area Boundary. 2024 Annual None 3 Amendment Cycle, Planning Commission UDC Rural Housing Amendments Carried Forward from 2023. Review of Land Use Environmental analysis was done on the entire Airport Overlay IIIas 4 and Zoning in the amended. There is a level of uncertainty at this non-project stage of the Jefferson County proposal regardingelements of SEPA review: impacts to air, water, ground, Airport Essential water runoff, plants, animals, energy, natural resources, environmental Public Facility (AEPF)health, noise, land use, housing, aesthetics, recreation, historic and cultural preservation, transportation, public services, utilities, and light and glare of unknown future development proposals. All future developments will be required to meet the County’s zoning and development standards of the Jefferson County Code. This may be one area of potential future controversy. Project-specific SEPA review will be conducted for projects that are not otherwise exempt. 6 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 INDIVIDUAL STAFF REPORTS: PROPOSED AMENDMENTS#2 AND #4 Modifications to Proposed Amendment 2: UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, Swapping Farm Land with Caswell-Brown Village and Adjacent Properties. New proposed description: ”Proposalto expand the Port Townsend Urban Growth Area (UGA) boundary to include publicly-owned parcels for public purpose use, including the Caswell- Brown Village for housing services.” Applicant: Jefferson County Assessor Parcel Numbers: 001162022, 001162001, 001162002, 001162003, 001162004, 001162015, 001161001, 001162017 Location: Mill Road and SR 20 Background:The construction of an emergency shelter and permanent support housing is a verified community need. It remains one of the biggest issues facing our community, as the current emergency shelter only has a limited time left in its contract with the American Legion in Port Townsend. The shelter initially only provided housing during inclement weather. In 2007, the Jefferson County Board ofCounty Commissioners adopted an Emergency Resolution (Resolution 35-17) in response to the county’s housing emergency and need for public facilities, providing both supportive and low-cost housing for persons who are unsheltered, extremely low income and/or experiencing disabilities. The shelter’s management eventually was shifted to Olympic Peninsula Community Action Programs (“OlyCAP”), and also expanded to year- round operation. The COVID-19 pandemic exacerbated the housing emergency issues. During this period, unsheltered individuals began camping at the Jefferson County Fairgrounds. With the eviction moratorium ending in November 2021, the County Commissioners began crisis planning by identifying locations within the county and near services to house those individuals who were experiencing homelessness. Three sites were reviewed, including the parcels on Mill Road. With American Rescue Plan funding, the County purchased the Mill Road site and several other contiguous parcels to the south as a unit. OlyCAP leases a site from the county, offering the local unhoused population a temporary place to stay while working to find permanent housing. OlyCAP named the new location the Caswell-Brown Village, in remembrance of two people who died while experiencing lack of shelter or supportive services. The Caswell-Brown Village (“CBV”) on Mill Road refers to the combined 50-bed emergency shelter with permanent supportive housing and a 40-lot park consisting primarily of recreational vehicles and tiny shelters to provide housing for persons experiencing housing insecurity. The County approved the project under a Type III conditional use permit (ZON2022-00152) for a public purpose facility. The local community supports the proposal and its location, as evident by no one submitted testimony, facts, or evidence that would serve as a basis to deny the proposal. 7 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 The CBV currently has 50 tiny shelters available to unhoused people, and OlyCAP is working to build a permanent support housing on site. It will be a continuum of care housing facility operated by OlyCAPon a long-term lease with the County. Staff Comment:Jefferson County is collaborating with the City of Port Townsend on a modification to the Port Townsend UGA, something that has not happened since the original establishment of the UGA boundary (coincident with the City of Port Townsend’s municipal boundary) in the years following the adoption of GMA. The Port Townsend UGA boundary would shift to include CBV and adjacent publicly-owned parcels. The total expansion would include eight parcels for a combined acreage of 32.72 acres. The zoning would change from Rural Residential (RR 1:20 and RR 1:5) to UGA Public. The area proposed to be included within the Port Townsend UGA is characterized by urban growth. Either the subject parcels themselves already contain urban-style development or they are located in close proximity to urban development, and by either measure, the subject area is appropriate for urban growth. The growth pattern on or near these lands makes the parcels incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural resource lands designated pursuant to RCW36.70A.170. The parcels are located in close proximity to urban services, including but not limited to the City of Port Townsend’s regional stormwater system, sanitary sewer system, domestic water system, street cleaning services, fire and police protection services, public transit services, healthcare and medical services, and other public utilities associated with urban areas and normally not associated with rural areas. Figure 1. 8 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Owners Parcel numbersAcres Jefferson County Parcel 1 (001162022)0.07 Jefferson County Parcel 2 (001162001)21.81 Jefferson County Parcel 3 (001162002)2.45 Jefferson County Parcel 4(001162003)2.50 Parcel 5 (001162004)2.53Jefferson County Jefferson County Parcel 6 (001162015)0.38 Parcel 7 (001161001)0.8Jefferson County City of Port Parcel 8 (001162017)2.18 Townsend Total Acreage:32.72 Acres Figure 2. 9 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Housing Element:The County and the City of Port Townsendhave been working on solutions for people experiencing homelessness, including emergency housing and transitional housing.CBV would be in the unincorporated UGA (with prospective annexation in the future). Itis now the onlycontinuum of carefacility for housing of this type in the immediate area.There are no other suitable alternative sites within the existing City of Port Townsend’slimitsto accommodate a similar facility.The level of housing services that can be developed at CBVare limited by land area and on-site septic requirements.The City of Port Townsendhas the capability to provide sanitary sewer service to CBVif it were located in the UGA and have the proper infrastructure upgrade \[RCW 36.70A.110(4)\]. Urban Growth Areas and Housing Elements are both partsof the GMA and are used to plan for housing and growth.UGAs are intended to encourage urban growth.Housing elements consider the needs of all economic segments of the community, including low, moderate, very low, and extremely low-income households. They also consider existing housing stock and the need for a variety of housing types and densities. The GMA was amended in 2021 to require that designated cities also identify the capacity and actions needed to accommodate future housing growth within four household income categories (based on U.S. Housing and Urban Development Department guidelines using Average Median Income, or AMI): moderate (80-95% AMI), low (50- 80% AMI), very low (30-50%), and extremely low (<30 AMI).In 2024, the GMA was amended to allow additional conditions under which UGAs may be revised.Counties are responsible for designating, expanding, and reducing UGA boundaries, in consultation with the cities in their determinations. In 2024, Jefferson County and the City of Port Townsend completed a joint housing allocation usingMethod C of the model provided by the State Department of Commerce, called the Housing for all Planning Tool(“HAPT”).Incorporating CBV into the Port TownsendUGA boundary addresses recentlegislation that amended GMA to require local governments, when completing the periodic update of comprehensive plans, to accommodate housing affordable to all economic segments of the population, reduce displacement risk,and undo identified racially disparate impacts. Local communities must design UGAs to include "areas and densities sufficient to permit the urban growth that is projected to occur in the county or city for the succeeding twenty-year period” \[RCW 36.70A.110(2) and WAC 365-196-310\].UGAs must also be designed so that urban services can be provided during the 20-year planning horizon. Although the existing Port Townsend UGA mayhave sufficientlandto accommodate the projected allocated population growth in twentyyears, there is no other suitable land to accommodate housing type similar toCBV. The CBV parcel is inside an existing water service area. In order for the City of Port Townsendto provide sewer service, expanding the Port Townsend UGA boundary to include CBV isa must. The proposal is intended to enable Jefferson County and the City of Port Townsend to address the Housing goal inthe GMA through their respective 10 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 comprehensive plan housing elements.There will be adequate public facilities to serve CBV during the planning period. Infrastructure Need:TheCity of Port Townsend is progressing to complete the City of Port Townsend’s General Sewer Plan(“GSP”)updatein 2025.The plan update provides planning level analysis of the City of Port Townsend’s Wastewater Treatment Plant, Biosolids Facility, and sewer collection system. The GSP addresses changes in regulations, existing infrastructure condition and upgrade needs, as well as growth consistent with the GMA and the 2016 adopted City of Port TownsendComprehensive Plan. The City of Port Townsendis currently in the process of updating the City of Port Townsend’s Comprehensive Plan scheduled for 2025 adoption. The updated GSP includes a projected capital investmentsanalysis and operational projection necessary for the next 20 years. An updated rate study was developed to pay for the infrastructure investment identified in the capital analysis to ensure adequate funds to operate the sewer system.The City of Port TownsendCouncil adopted the 2024 General Sewer Plan via Resolution 24-07 on May 6, 2024. The GSP is under review by the Washington State Departmentof Ecology. Following Ecology’s review and approval, the final adoption will be incorporated into the City of Port Townsend’s 2025 periodic update. The City ofPort Townsend’slimits coincide with the Port Townsend UGAboundary, and encompass an area of approximately 7.4 square miles. Approximately 50 percent of the land within the City of Port Townsend’s future wastewater service area is designated for residential use, while the remaining land is designated for other uses such as open space/parks, commercial use, public/infrastructure use, and other land uses. Most significantly, the City of Port Townsend envisions a new neighborhood to CBV’s immediate north, the Evans Vista. Future plans include a new lift station on Mill Road (i.e., Mill site) for the proposed Evans Vista neighborhood. Currently in the preliminary design and fiscal analysis phase, the proposed 14.4-acre Evans Vista campus is envisioned to include 100 to 150 affordable, workforce and mixed-income housing units.The initial findings of the GSPand the Capital Improvement Plan(“CIP”)assumed that most of the new growth will occur at or near the Mill site. The CIP includes a lift station to allow development of the Mill site and conveyance for the new lift station’s discharge throughout the existing collection system.All of the discharge from this station will flow by gravity to the wastewater treatment facility posing no new loads to existing lift stations.The Mill site and all major lift stations will be relatively new and/or rehabilitated in the 2020s, and no additional capacity or significant upgrades will be needed during the 20-year planning horizon. Jefferson County Public Utility District No. 1(“PUD”)is working to address power capacity and reliability issue in the Port Townsend area.PUDbelievesthe solution to these issues is to build another electrical sub-station that are adjacent to existing PUD power lines.In looking for suitable location,thePUD identified two county-owned parcels, which were purchased as a unit when establishing CBV at its current location.PUD’s General Managerrecentlyaddressed the County Commissioners in a Board meeting,wherein the Board agreed to sell the two parcels to the PUD. The County and the PUD are currently working on documentation to effectuate the sale. 11 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 One of the innovations of the GMA is the emphasis it places on the need to match public infrastructure priorities with the land uses designated on thefuture land use map.The comprehensive nature of planning under the GMA establishes the comprehensive plan as the blueprint for fitting the jurisdiction’s vision, land use, and service priorities together in a more efficient and effective way. The capital infrastructure required to serve therevised Port Townsend UGA boundary is determined by conducting an inventory of existing facilities, establishing an adequate level of service to accommodate the projected growthor housing needs, and measuring the difference between what is available and what is needed.The 32.72acres to be included in the Port Townsend UGA are all publicly-owned parcels. In addition to the CBV properties, also included are the City of Port Townsend regional stormwater facility parcel located northeast of CBV and the parcels to be owned by PUD for a new substation southeast of CBV. The re-designation of the land use and zoning maps would eliminate the potential segmentation of the required urban services and facilities, but also ensure that future connections/expansions of these services were possible. WAC, RCW and Countywide Planning Policies (“CPP”). WAC 365-196-310(3) includes guidelines for selecting and allocating countywide population projections used to assist in the overall analysis and designation of UGAs for cities, UGAs not associated with cities, and potential growth in rural areas. Countywide population must be within the range of projections provided by OFM for the 20-year planning period. This section of the WAC also encourages consideration of other population-related factors including: population forecasts from outside agencies or service providers; historical Census data; the ability of counties and cities to meet the financial obligation to support the population projection they plan for; the land supply and density of uses that will efficiently accommodate the population projection; more frequent reviewand update of UGAs than the required minimum review; and integration of employment forecasts from the selected population projection that will be allocated to UGAs and the rural area. AnUGA maybe amended to include areas that are located outside of a city if it is already characterized by urban growth, or if an area is adjacent to the area already characterized by urban growththatwill beserved by urban public facilities. UGAs should reflect a cooperative effort amongst jurisdictions in the county toaccomplish the requirements of the act on a regional basis, consistent with countywide planning policies.Services should be provided by cities in UGAs. (WAC 365-196-310 (3)) UGA boundary expansion must be evaluated on a countywide basis. The location and size of any revision isdetermined by the Countyafter a thorough analysis and a joint planning process with the City of Port Townsend, and then only if deemed necessary and all state requirements have been met\[RCW 36.70A.215(2) & WAC 365-196-310(4)(b)\]. This includes the direction that 12 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 “counties and cities should first consider the potential of increasing capacity of existing urban areas through allowances for higher densities, or for additional provisions to encourage redevelopment”(WAC 365-196-310(4)(b)(iv)). In summary, appropriate location of new or expanded UGA boundary include: UGA should have the density to accommodate urban growth, served by adequate public facilities, discourage sprawl, and promote the goals of the act. The county should attempt to define the urban growth area to accommodate the growth plans of the City of Port Townsend. New lands should be identified in the following priority: o Existing incorporated areas o Land that is already characterized by urban growth and has adequate facilities and services o Lands adjacent to the above, but not meeting those criteria UGAs should not be expanded into designated agricultural, forest, or resource lands unless no other option is available. Counties should avoid expanding the UGA into areas with known critical areas extending over a large area. (WAC 365-196-310(4)(c) Inclusion of the CBVand surrounding parcelswithin the Port Townsend UGA meetsstatutory requirements.The addition of publicly-owned land is consistent with UGA designation criteria, asthe addition does not alter the residential or employment capacity of the UGA. The recent legislative changesrequire local jurisdictionsto consider accommodations for housing projected population based on income categories.The joint effort by theCounty and City leaders identified CBV as the proper location to establish the emergency shelter and permanent supportfacility.CBV is currently zoned Rural Residential 1:20, which is inconsistent with the current and projected public-purpose use of the county-owned property.Includingthe property withinthe Port Townsend UGA would enable the provision ofhousing formore persons experiencing housing insecurity.CBV will beserved by adequate roads, fire protection, infrastructure, water, wastewater disposal, and stormwater control, among other elements. Further, SEPA mitigation measures includedin the unchallenged MDNS threshold determination in association with CBV’s housing facility approval(ZON2022-00152)are expressly adopted as conditions of approval for thepermit. Five issue-specific plans,includinga Transportation Plan,arerequired to be completed in consultation with first responders and agencies (Cityof Port Townsend Police Department, Jefferson County Sherriff’s Office, East Jefferson Fire Rescue). The County and City collaborated during the project review. Beyond those as proposed and approved under the County’s conditional use permit, CBV is not expected to experience any additional development for the foreseeable future.It will not increase pressure to urbanize rural or natural resources lands 13 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 UnderRCW 36.70A.020, the GMA establishes a series of 15 goals that should act as the basis of all comprehensive plans. The GMA specifically notes in the statute that the goals “are not listed in order of priority and shall be used exclusively for the purpose of guiding the development of comprehensive plans and development regulations.” As such, urban growth, housing, and public facilities and servicesare equally important. The CBVlocationis suitable for urban growthas characterized by existing development and infrastructure. Moreover, including CBVand surrounding parcelsinto the Port Townsend UGA would qualify the jurisdictions to obtain Connecting Housing to Infrastructure (“CHIP”) funding to expand/upgrade the City of Port Townsend’s sewer infrastructureand enablethe City to provide sewer service to CBV. The Countywide Planning Policies (“CPP”) were developed initially in the 1990s as prescribed by RCW 36.70A.210 through a collaborative process between Jefferson County and the City of Port Townsend. With subsequent population allocation exercises associated with GMA-mandated periodic updates, a Growth Management Steering Committee (“GMSC”) was expanded over time in order to achieve greater countywide representation. The2024 updateof these countywide planning policies has been overseen bythe GMSC, and federally recognized Indian Tribes were invited to participate in review of the countywide planning policies. In a planningprocess over five meetings in 2024, the GMSC reached a recommendation for updating the Countywide Planning Policiesfor the first time since the early 1990s, citing the local need for the siting of special purpose housing such as emergency housing and shelters. Permanent supportive housing to ensure such housing can be accommodated is identified as one of the priorities. The inclusion of the CBV into the Port Townsend UGA would maximize the funding opportunity in order to have the proper infrastructure toconnect to the City of Port Townsend’s sewer system. The anticipated funding allocated to install a large onsite septic system per Condition #38 of ZON2022-00152 would be used elsewhere to better serve the project. Thecountywide policies establish the foundation for determining consistency of individual plans with each other and with the tenets of the Growth Management Act, as well as a mechanism to coordinate the provision of public facilities and services throughout the community. These policies encompass broad concepts encouraging flexibility and innovation in meeting the goals and intent of the Growth Management Act. Jefferson County, City of Port Townsend, and other stakeholders are supportive of the CBV. Policy #1 of the 2024 update of the Countywide Planning Policies addresses the policies on UGAs. It contains the criteria on UGA boundaries amendment, such change “shall only occur after the zoning and land use that ensues urban patterns and densities is identified, and capital facilities plan is updated and adopted assuring adequate urban service to support the additional area”. Policy #6 of the countywide policies addresses affordable housing. One of the policies is to update the housing andland use elements of comprehensive plansto include assessment of land 14 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 available and the process of siting special purpose housing to ensure such housing can be accommodated. See the following sections to further elaborate on how CBV and the surrounding publicly-owned property fits the required criteria to be incorporated into the Port Townsend UGA. Environmental Information: CBV has an existing land use and zoning designation of Rural Residential (“RR”) 1:20 (onedwelling unit per 20 acres). The parcel is not designated as agriculture, forest, or mineral resource lands. Only slight landslide hazard area and susceptible aquifer recharge areas are mapped as critical areas. Slight landslide hazard area is not regulated under the County’s Critical Areas Ordinance. The proposed impervious areas related to CBV are limited, and the likelihood of negatively affecting infiltration, runoff, recharge, or long-term aquifer sustainability is minimal.That is to say, the mapped critical areas would not make the siteunsuitable for urban development. Cumulative Impact Analysis: Pursuant to JCC 18.450.080(1)(b), the Planning Commission and the Board of County Commissionersshall develop findings and conclusions that consider specific criteria.Those criteria, and staff evaluations, follow. Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation Is growth and development as envisioned in Growth is occurring as anticipated in the the Comprehensive Plan occurring faster or Comprehensive Plan. slower than anticipated, or is failing to materialize? Has the capacity of the county to provide The County and City of Port Townsend adequate services diminished or increased?coordinate with providing services to people experiencing homelessness. The capacity to do sohas recently diminished. The American Legion Hall had limited space and is now no longer availableas a long-term facility. Development of Caswell-Brown Village (“CBV”) has increased overall capacity, though this is now the only facility. Better use can be made of the property if City sewer service could be provided. 15 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation Is sufficient urban land designated and The inclusion of CBVin the Port Townsend zoned to meet projected demand and need?UGAwould allow sewer service be provided, eliminating the need of a Large Onsite Sewage System (“LOSS”). This will better meet demand. Are any of the assumptions upon which the There are no invalid assumptions.The Jefferson County Comprehensive Plan is Comprehensive Plan is being updated to based no longer valid, or is new information reflect updated information and new state available that was not considered during laws. the adoption process or any annual amendments of the Jefferson County Comprehensive Plan? Does the proposed amendment reflect the Yes. Facilities for housing and human current widely held values of the residents services have been valued in the County. of Jefferson County?UGA boundary discussions have occurred since enacting Growth Management Act. Do changes in county-wide attitudes No. The proposal is supported by the necessitate amendments to the goals of the Comprehensive Plan. plan and the basic values embodied within the Comprehensive Plan Vision Statement? Do changes in circumstances dictate a need Yes. Circumstances will require additional for amendment?temporary housing. The UGA expansion would amend the Comprehensive Plan. 16 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation Do inconsistencies exist between the No. There are no inconsistencies in relation Comprehensive Plan and the GMA or the to this proposal. Comprehensive Plan and the County-wide Planning Policy for Jefferson County? Have circumstances related to the proposed CBVwould need to spend program dollars amendment and/or the area in which it is for large septic capacity. If the City can located substantially changed since the provide sewer service, those program adoption of the Jefferson County dollars can be used for expanding other Comprehensive Plan?neededservicesto better serve the clients at CBV. The proposed text amendment meets There are no transportation capacity issues concurrency requirements for with this project.In fact, the site is situated transportation and does not adversely within a walking distance to other public affect the adopted level of service facilities and services, but not limited to standards for other public facilities and sheriff, fire and emergency, medical, parks, services (e.g., sheriff, fire and emergency public transit, and general governmental medical services, parks, fire flow, and services. general governmental services); The proposed text amendment is consistent Yes, the proposal is supportedby the with the goals, policies and implementation Comprehensive Plan goals and policies, strategies of the various elements of the particularly the Housing Element. Jefferson County Comprehensive Plan; The proposed text amendment will not The amendment would result in better use result in probable significant adverse of services and does not have any significant impacts to the county’s transportation environmental impacts. network, capital facilities, utilities, parks, and environmental features that cannot be mitigated, and will not place uncompensated burdens upon existing or planned service capabilities; 17 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation In the case of a text amendment to the Land Parcel currently under review is well- Use Map, that the subject parcels are situated for itsintended purpose.The CBV is physically suitable for the requested land in proximity to the city and services. use designation and the anticipated land use development, including, but not limited to, the following: A. Access; B. Provision of utilities; and C. Compatibility with existing and planned surrounding land uses. The proposed text amendment will not No.The current land use designation for create apressure to change the land use CBV is RR 1:20, and is in the County’s designation of other properties, unless the ownership. Adjacent parcels proposed for change of land use designation for other inclusion in the Port Townsend UGA are all properties is in the long-term best interests publicly-owned with proposed public of the county as a whole;purpose uses. Changing the land use designation for other properties is not required. The proposed text amendment doesnot No. Land use and population are not materially affect the land use and materially affected. population growth projections that are the bases of the Comprehensive Plan; If within an unincorporated urban growth The proposal does not materially affect the area (UGA), the proposed text amendment adequacy or availability of urban facilities does not materially affect the adequacy or and services to the immediate area and availability of urban facilities and services overall UGA. Beyond those as proposed and to the immediate area and the overall UGA;approved under the County’s conditional use permit, CBV is not expected to experience any additional development for the foreseeable future. It will not increase 18 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation pressure to urbanize rural or natural resources lands The proposed amendment is consistent Yes. The proposal is consistent with CP, CPP, with the Growth Management Act (chapter and GMA. 36.70ARCW), the County-Wide Planning Policy for Jefferson County, any other applicable inter-jurisdictional policies or agreements, and any other local, state or federal laws. Please provide an explanation of why the There is an overriding public interest amendment is being proposed.demonstrating a public benefit beyond the inclusion of theCBV and the surrounding parcels into the Port Townsend UGA. It is related to protecting public health, safety, and welfare; enabling more cost-effective, efficient provision of sewer and water; and enabling the locally adopted Comprehensive Planand Countywide Planning Policiesto more effectively meet the GMA goals and is authorized under state law. Of note, in order to qualify for Connecting Housing to Infrastructure (“CHIP”) Grant funding through WA Department of Commerce, the project site must be fully inside an UGA boundary. CHIP funding would enable CBV eligibility for sewer extension. Jefferson County and the City of Port Townsend have been collaborating and performing work to make this endeavor possible. If the opportunity forCHIP funding for the sewer connectionis missed, Jefferson County may have a situation where the interim emergency shelter will 19 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Cumulative Impact Analysis -UGA Comprehensive Plan & UDC Amendments to Amend the Port Townsend Urban Growth Area, including theCaswell-Brown Village property UDC/JCC CriterionStaff Evaluation close and the new shelter will have a funding gap to open. The impact on our unsheltered population would be devastating. Supplemental Sheet for Non-Project Actions: The following environmental analysis is presented in the format of the Non-Project Action Supplemental Sheet to the Environmental Checklist developed by the Department of Ecology pursuant to the State Environmental Policy Act (“SEPA”). Question #1.How would the proposal be likely to increase discharge to water; emissions to air; production, storage, or release of toxic or hazardous substances; or production of noise? Development standards in both the Jefferson County Codeand the Port Townsend City Codeare sufficient to address stormwater, noise, and waste disposal. Question #2. How would the proposal be likely to affect plants, animals, fish, or marine life? The Caswell-Brown Village operates under a county stormwater permit.Vegetation is preserved as screening. Question #3. How would the proposal be likely to deplete energy or natural resources? The Caswell-Brown Village site is area already planned for emergency, transient, and permanent supportive housing. It is connected to a public water system. Sanitary sewer would be provided by an established City of Port Townsendutility when a fundingsource is secured to extend/upgrade the necessary infrastructure. There will be no significant depletion of energy or natural resources. Question #4. How would the proposal be likely to use or affect environmentally sensitive areas or areas designated (or eligible or under study) for governmental protection, such as parks, wilderness, wild and scenic rivers, threatened or endangered species habitat, historic or cultural sites, wetlands, floodplains, or prime farmlands? The mapped environmentally sensitive areas are not subject to regulation under the County’s Critical Areas Ordinance. There are no areas designated or eligible for governmental protection. 20 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Question #5. How would the proposal be likely to affect land and shoreline use, including whether it would allow or encourage land or shoreline uses incompatible with existing plans? CBA was permitted under a County conditional use permit. It is a compatible land use outside of shoreline jurisdiction. Sewer extension into the general vicinity of CBV might encourage appropriate urban growth in the immediate area, as envisioned and planned. Question #6. How would the proposal be likely to increase demands on transportation or public services and utilities? The scale of the project would not significantly increase transportation or public service demand. Bus service already is nearby and is accessible to the people housed at the CBV. The parcel is served by a public water supply and is in the City’s sewer service area. The City of Port Townsend has indicated that it has the capability to serve the CBV with the system improvement upgrade. Question #7. Identify, if possible, whether the proposal may conflict with local, state, or federal laws or requirements for the protection of the environment. There are no knownconflicts with local, state, or federal laws or requirements. Staff Recommendation: Staff supports the inclusion of theCaswell-Brown Village (“CBV”) and surrounding publicly- owned parcels, totaling 32.72 acres,into the Port Townsend UGA so that urban services(i.e., sewer)can be provided to this public purpose facility. The proposal would also match existing land use to the updated land use map for both County and City. Existing public facilities include the City’s regional stormwater facility and a new substation as proposed by the Public Utility District No. 1 of Jefferson County (“PUD”). Exhibit to Proposed Amendment 2 – Comprehensive Plan Amendatory Language Proposal to expand the Port Townsend Urban Growth Area boundary to include publicly-owned parcels for public purpose use, including the Caswell-Brown Village for housing services. Strikethroughdenotes a deletion; underlinedenotes an addition. Jefferson County Comprehensive Plan Page 1-26: Urban Growth Area Designations The Port Hadlock/Irondale Urban Growth Area is planned for urban residential, urban commercial, urban industrial, Both Rural and Urban Zones apply per the Land Use and Zoning map. Rural zones apply until urban wastewater services are available, and then Urban zones apply. See Section 1.4for additional discussion. 21 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 The unincorporated Port Townsend Urban Growth Area is planned for public purpose facilities, such as emergency shelters, transitional housing,emergency housing, andpermanent supportive housing. Urban Growth Area – Public Facilities district applies to the unincorporated Port Townsend Urban Growth Area per the Land Use and Zoning map. Page 1-26: EXHIBIT 1-15AUnincorporated Port Townsend Urban Growth Area Land Use & Zoning Designations Land Use Designation Description of ZoningPrincipal Districts & LocationLand Use Public FacilitiesPublic Facilities (UGA-P) comprise 32.72 acres, Public and including open space areas, the Caswell-Brown Institutional Village, the Port Townsend Regional Stormwater Facility, and a future electrical substation as proposed by the Public Utility District No. 1 of Jefferson County. Page 1-34: Urban Growth Areas & Services Policies on Urban Growth Areas describe using the OFM to develop a joint County-City of Port Townsend population forecast that would be used in capital facility and service plans. Additionally, the policies describe sizing the urban growth area based at least on the low forecast or if capital facilities are sufficient based on a medium or high projection. Sizing of Urban Growth Areas is to be based primarilyon adequate supply of developable land to accommodate the joint population forecast, and including land for residential, commercial, and industrial uses. The Urban Growth Area boundaries may be revised to accommodate special purpose housing, provided an assessment of available land indicates that revision is necessary to accommodate housing to all economic segments of the population, reduce displacement risk, and undo identified racially disparate impacts. Page 1-112 22 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Urban Growth Areas Municipal & Unincorporated The GMA authorizes the designation of Urban Growth Areas in RCW 36.70A.110 to include cities and other areas characterized by urban growth or adjacent to such areas. Urban Growth Areas are intended to accommodate a projected population growth for the next twenty years. The GMA specifies that future growth should, first, be located in areas that already have public facilities and service capacity and, second, in areas where such services, if not already available, are planned. In Jefferson County, there are two Urban Growth Areas: City ofPort Townsend MunicipalUrban Growth Area (Municipal and Unincorporated);and Port Hadlock/Irondale Unincorporated Urban Growth Area. The City of Port Townsend is subject to its own Comprehensive Plan and development regulations affecting urban growth and the provision of public facilities and services withinthe City of Port Townsend. The unincorporated portion of the Port Townsend UGA is subject to the Jefferson County Comprehensive Plan and implementing regulations. Joint planning between the County and City is encouraged, particularly for those areas that may be annexed into the City of Port Townsend at some point in the future. The Irondale-Port Hadlock Urban Growth Area is an unincorporated Urban Growth Area, located approximately 5 miles south of the City of Port Townsend, adjacent to Port Townsend Bay. This unincorporated Urban Growth Area is subject to the Jefferson County Comprehensive Plan and implementing regulations. An Urban GrowthArea defines where urban developments will be directed and supported with typical urban public facilities and services, such as storm and sanitary sewer systems, domestic water systems, fire and police protectionservices, and public transit services. Urban growth areas enable new development to locate close to vital capital facilities and urban services or "infill" in existing urbanizing areas. Urban Growth Areas enable fiscal resources associated with capital facilities and urban services to be operated more cost-effectively. The Port Hadlock/Irondale Urban Growth Area is an unincorporated Urban Growth Area, located approximately 5 miles south of the City of Port Townsend, adjacent to Port Townsend Bay. This unincorporated Urban Growth Area is subject to the Jefferson County Comprehensive Plan and implementing regulations. 23 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 An Urban Growth Area defines where urban developments will be directed and supported with typical urban public facilities and services, such as storm and sanitary sewer systems, domestic water systems, fire and police protectionservices, and public transit services. Urban growth areas enable new development to locate close to vital capital facilities and urban services or "infill" in existing urbanizing areas. Urban Growth Areas enable fiscal resources associated with capital facilities and urban services to be operated more cost-effectively. The Urban Growth Area is an area where urban public facilities and services are available or are planned. Provision of urban public facilities and services may be available through several service providers, such as Jefferson County, the JPUD, or some other entity such as a sewer and water district. Port Townsend Urban Growth Area Background The construction of an emergency shelter and permanent support housing is a verified community need. It remains one of the biggest issues facing our community. The COVID-19 pandemic exacerbated the housing emergency issues, and the County Commissioners began crisis planning by identifying locations within the county and near services to house those individuals who were experiencing homelessness. With American Rescue Plan funding, the County purchased the Mill Road site and several other contiguous parcels to the south as a unit. OlyCAPleases a site from the County, offering the local unhoused population a temporary place to stay while working to find permanent housing. OlyCAP named the new location the Caswell- Brown Village, in remembrance of two people who died while experiencing lack of shelter or supportive services. The Caswell-Brown Village (“CBV”) on Mill Road refers to the combined 50- bed emergency shelter with permanent supportive housing and a 40-lot park consisting primarily of recreational vehicles and tiny shelters to provide housing for persons experiencing housing insecurity. It will be a continuum of care housing facility operated by OlyCAPon a long-term lease with the County. Jefferson County has collaborated with the City of Port Townsend on a modification to the Port Townsend UGA, something that has not happened since the original establishment of the UGA boundary (coincident with the City’s municipal boundary) in the years following the adoption of GMA. The area proposed to be included within the Port Townsend UGA is characterized by urban growth. Either the subject parcels themselves already contain urban-style development or they are located in close proximity to urban development, and by either measure, the subject area is appropriate for urban growth. The growth pattern on or near these lands makes the parcels incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural 24 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 resource lands designated pursuant to RCW36.70A.170. The parcels are located in close proximity to urban services, including but not limited to the City’s regional stormwater system, sanitary sewer system, domestic water system, street cleaning services, fire and police protection services, public transit services, healthcare and medical services, and other public utilities associated with urban areas and normally not associated with rural areas. In 2024, Jefferson County and the City of Port Townsend completed a joint housing allocation using Method C of the model provided by the State Department of Commerce, called the Housing for all Planning Tool (“HAPT”). There are no other suitable alternative sites within the existing Port Townsend city limits to accommodate a similar facility. Incorporating CBV into the Port Townsend UGA boundary addresses recent legislation that amended GMA to require local governments, when completing the periodic update of comprehensive plans, to accommodate housing affordable to all economic segments of the population, reduce displacement risk, and undo identified racially disparate impacts. The City of Port Townsend is progressing to complete the City’s General Sewer Plan (“GSP”) update in 2025.The plan update provides planning level analysis of the City’s Wastewater Treatment Plant, Biosolids Facility, and sewer collection system. The updated GSP includes a projected capital investments analysis and operational projection necessary for the next 20 years. An updated rate study was developed to pay for the infrastructure investment identified in the capital analysis to ensure adequate funds to operate the sewer system. The GSP is under review by the Washington State Department of Ecology. Following Ecology’s review and approval, the final adoption will be incorporated into the City’s 2025 periodic update. Jefferson County Public Utility District No. 1 (“PUD”) is working to address power capacity and reliability issue in the Port Townsend area. PUD believes the solution to these issues is to build another electrical sub-station that are adjacent to existing PUD power lines. In looking for suitable location, the PUD identified two county-owned parcels, which were purchased as a unit when establishing CBV at its current location. The County and the PUD are currently working on documentation to effectuate the sale. The 32.72-acre unincorporated Port Townsend UGA comprises all publicly-owned parcels. The re-designation of the land use and zoning maps would eliminate the potential segmentation of the required urban services and facilities, but also ensurethat future connections/expansions of these services were possible. 25 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Land Use Map & Zoning Designations The Land Use and Zoning Map,adopted as a part of this element, is the graphic representation of the densities and intensities of use and the goals, policies, and strategies contained within this plan. Land use and zoning designation is as follows: Public facilities (“UGA-P”) comprise 32.72 acres, including open space areas, the Caswell-Brown Village, the Port Townsend Regional Stormwater Facility, and a future electrical substation as proposed by the Public Utility District No. 1 of Jefferson County. Page 1-125 UrbanGrowth Area Goals & Policies The goals and policies of the Urban Growth Area element provide direction for the development of the Port Townsend Unincorporated Urban Growth Areaand the Jefferson’s County’s Port Hadlock/Irondale Unincorporated Urban Growth Area. They outline specific criteria for urban development, incorporating issues and opportunities identified by County residents in the public Urban Growth Area planning process. Page 1-130 Policy LU-P-33.6 In addition to the LOS adopted for public facilities in the Capital Facilities and Utilities Element of this Comprehensive Plan, adopt Urban LOS standards for the following capital facilities and public services in the Port Hadlock/Irondale Unincorporated Urban Growth Area: a.On-Site Septic Sewage Treatment and Disposal: Per Jefferson County Code Chapter 8.15 (On-Site Sewage Disposal Systems) Sanitary Sewer: Per the adopted City of Port Townsend General Sewer Plan andthe Port Hadlock/Irondale Urban Growth Area General Sewer Plan and Port Hadlock Wastewater Facility Final Design. Page 8-3 26 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 EXHIBIT 8-1 Capital Facilities & Public Services Provided Capital Facility & Providers Serving Unincorporated Service TopicTerritoryGuiding Plans SewerPort Hadlock/Irondale UGA –Port Hadlock Wastewater Jefferson CountySystem: Urban Growth Area Sewer Facility Plan, 2008 and Port Hadlock UGA Sewer Facility Plan Update, 2021 Design Plans & Port Ludlow – Olympic Water and Specifications, 2013 Sewer Port Townsend General Unincorporated Port Townsend Sewer Plan (pending final UGA adoption in 2025) Page 8-32 Policy CF-P-9.1 Utilize the following siting criteria as the basis for siting new essential public facilities or for the expansion of existingessential public facilities: a.Proximity to major transportation routes and essential infrastructure; b.Land use compatibility with surrounding areas; c.Potential environmental impacts by the facility as well as to the facility, including siting considerations regarding effects of climate change; d.Effects on resource and critical areas; e.Proximity to Urban Growth Areas f.Public costs and benefits including operation and maintenance; g.Current capacity and location of equivalent facilities; and, h.The existence, within the community, of reasonable alternatives to the proposed activity. i.Other criteria as determined relevant to the specific essential public facility, or criteria developed with Port Townsend (municipal and unincorporated)or the Port Hadlock/Irondale unincorporated Urban Growth Area community. 27 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Proposed Amendment 4: Proposed Amendment 4: Review of Land Use and Zoning in the Jefferson County Airport Essential Public Facility (AEPF) Applicant: The Port of Port Townsend Location: This proposed amendment will change the zoning and overlay designation of parcels, or portions of parcels: 1.Addition to AEPF: APN001332013 & 001332017, currently zoned RR-5, to be zoned EPF-A; 2.Expansion of Airport Overlay III (which currently consists of 24-acre APN 001331005): APN 001332013 & 001332017(AEPF addition parcels); portions of the following parcels that are currently in the AEPF:APN 001284006 NE corner of AEPF, north of Airport Road, and portions of parcels outside of the FAA building restriction zone: APN 001332004 (a portion of parcel west of SR20 and portion east of SR20), APN 001332001; APN 001331017; APN 001331012; APN001331018 (entire); and APN 001331016. General Description: The AEPF is currently ca. 316 acres. The Port of Port Townsend proposes to expand the AEPF by 12 acres by adding two 6-acre parcels (APN 001332013 and APN 001332017) to the southwest boundary (Figure 3), as well asexpand the 24-acre Airport Overlay III within the resulting AEPF zone from 24 acres to ca. 73.5 acres total (Figure 4). There are two distinct portionsto the expanded overlay: 1) a 6.5-acre area in the northeast corner of the AEPF, north of Airport Road, and 2) the main overlay area south of the FAA building restriction line (identified as Airport Overlay I). The proposed expansion of the AEPF has been accepted by the FAA as an amendment to the Airport Layout Plan (“ALP”) as requiredby FAA. An update to the Airport Master Plan is anticipated in 2025.A 3.38-acre portion of parcel APN 001334004 (“RR-10”) located below the AEPF and connecting to Four Corners Road,was originally planned to be part of the AEPF expansion, butwill be acquired by the Port of Port Townsend for access to the AEPF and Airport Overlay IIIand remain with rural residential zoning. No development would occur on this access parcel except utilities and access. Pursuant to JCC 18.15.453(1) the purpose of the Airport Overlay III is to provide a limited opportunity for rural scale non-aviation-related industrial uses that contribute to the long-term financial viability of the AEPF and to enhance the economic vitality and quality of life for the citizens of Jefferson County.The JCIA light industrial manufacturing park hasalternately been referencedas the Airport Light Industrial Park (“ALP”), or JCIA Rural Light Industrial Park. The purpose of the expansion of Airport Overlay III is to provide additional land for Light Industrial/Manufacturing uses to provide additional economic growth opportunities, and ultimately, add employment opportunities in the area. 28 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Comprehensive Plan Proposed Amendatory Language: 1.Amend Exhibit 1-8 Land Use/Zoning Map to reflect 12-acre addition to the AEPF(zone EPF- A). (Figure 3.) 2.Amend the relevant portion of Exhibit 1-11, “Summary of Land Use & Zoning Designations”, Page 1-20, to read as follows: Land Use/Zoning Criteria for designationPrincipal DesignationLand Use INDUSTRIAL Light Industrial/Light Industrial Quilcene Industrial Area Manufacturing Eastview Industrial Plat (LI/M) (JCIA LI/M Overlay III, consisting of 24 acres, Assessor’s Parcel No. 001-331-005in the AEPF 3.Amend Exhibit 1-20, “Location of Rural Industrial Lands”, Page 1-83, to accurately depict the location and extent of the JCIA LI/M Overlay. (Figure 4.) 4.Amend the map, “Jefferson County International Airport – Non-Aviation Related Light Industrial/Manufacturing Overlay”, Page 1-91, to accurately depict the expanded location and extent of the JCIA LI/M Overlay. (Figure 4.) 5.Amend the first paragraph under the heading “Air, Waterborne, & Freight Travel”, Page 6-7, to read as follows: The Jefferson County International Airport (“JCIA”) is owned and operated by the Port of Port Townsend. It is situated about four miles southwest of the City of Port Townsend on about 316 acres. Its runway is about 3,000 feet in length, and over 107 aircraft are based there. The Airport is designated as a General Aviation (GA) airport by the FAA’s National Plan of Integrated Airport Systems (“NPIAS”). In 2010, the total flightoperations equaled approximately 58,030, a small percentage of which arewereair taxi and commuter service and the majority of which arewere general aviation flights,. Airport use is anticipated to increase in the future. The Port’s current Airport Master Plan Update (July, 2014) identifies an expansion plan to meet a 2.8% growth rate for its 107 based aircraft and to stay within FAA requirements for safety and efficient airside and landing facilities. The Port will applyappliesfor airport development grants for eligible components of its preferred airport layout plan. Ancillary uses of the facility which attracts public interest and increases use inatthe airportincludes businesses and organizations such as an aero 29 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 museum, aflight instruction school, airplane mechanics, anairplane restoration school, restaurant, and 24 acresareasdesignated in 2009 (Ord. No. 11-1215-09)for non-aviation-related light industrial/manufacturing development. The airport is designated and zoned as an Essential Public Facility by Jefferson County. Some airport master plan recommendations address height, noise, and other factors. (Port of Port Townsend, 2014)The FAA-approved Airport Master Plan describes the Port’s goals and objectives for the future maintenance, modernization, and/or expansion of the facility. It is a guidance document that outlines key planning and development issues and provides recommendations on a wide range of issues (e.g., building heights, noise, etc.). The Port is initiating a process to update the Master Plan in 2025. 6.Amend the second and third paragraphs under the heading “Industrial & Manufacturing Businesses”, Page 7-20, to read as follows: Industrial sites in Jefferson County include the Port of Port Townsend, Port Townsend Industrial Park (which has become a commercial and business park), Glen Cove, Eastview, Quilcene Industrial Area, the Irondale/Port Hadlock UGA, the Port Townsend Paper Company, 24 acres at a Rural Light Industrial Parkat the Jefferson County International Airport, and Resource Based Industrial zoned sites. In addition to the industrial sites described above, the light industrial manufacturing park at the Jefferson County International Airport, also known as the Airport “JCIA RuralLight Industrial Park”also allows non-aviation related industrial and manufacturing uses. In 2009, the County approved a rezone of 24 acres from rural residential to Airport Essential PublicFacility capable of supporting up to ten small to medium sized low impact, non-aviation-related light industrial/manufacturing businesses. As of 2017 the site requires a Binding Site Plan, clearing and installation of infrastructure before any business operations. Compliance with all applicable provisions of the Jefferson County Code (“JCC”), including but not limited to Chapters 18.20, 18.30, and 18.35 JCC and the development standards established for the Airport Overlay III in JCC 18.15.453 and JCC 18.35.460, together with relevant provisions of the FAA-approved Airport Master Plan, is required prior to development within the Rural Light Industrial Park. This will ensure installation of all necessary infrastructure and utility improvements to support development and use, as well as implementation of low impact development techniques. Unified Development Code Proposed Amendatory Language 1.Amend Article III-A, “Jefferson County Airport Essential Public Facility District”, JCC 18.15.1110 “Designated”, to read as follows: The Jefferson County International Airport (“JCIA”) is a general purpose, public aviation airport that provides recreational, business, flight training, charter and air taxi services and other uses. The airport essential public facility district designation (see the official Jefferson County Comprehensive Plan land use designations map) shall apply to the following: 30 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 (1)Parcels designated as an airport essential public facility on the official Jefferson County Comprehensive Plan land use designations map; (2)Any parcel or parcels (a) subsequently acquired by the Port in accordance with the provisions of the approved JCIA master planand depicted on the Airport Layout Plan (ALP) Map of the FAA-approved Airport Master Plan;or (b) currently owned by the Port, which are approved for inclusion in the airport essential public facility district through the Jefferson County Comprehensive Plan text and land use amendment process, or any other applicable process. \[Ord. 8-06 § 1\] 2.Amend Article III-A, “Jefferson County Airport Essential Public Facility District”, JCC 18.15.453 “Airport Overlay III”, to read as follows: (1)Purpose. The purpose of the Airport Overlay III is to provide a limited opportunity for rural scale non-aviation-related industrial uses that contribute to the long-term financial viability of the AEPF and to enhance the economic vitality and quality of life for the citizens of Jefferson County. (2)Overlay Map. Jefferson County will prepare and maintain an Airport Overlay III map that identifies the parcels located within the overlay. (3)Permitted, Conditional and Prohibited Uses. Notwithstanding the permitted, conditional and prohibited use limitations set forth in JCC 18.15.1112 through 18.15.1114, the following uses shall be permitted within the Airport Overlay III designation: (a) Non-aviation-related light industrial/manufacturing. (4)Development Standards. In addition to the standards for new development in the AEPF district set forth in JCC18.15.1124through18.15.1132, the following provisions shall apply: (a)Impervious Surface Coverage, Building Dimension and Height Restrictions. (i)Total impervious surface coverage shall not exceed 25 percent. (ii)No structure shall exceed 10,000square feet in size. (iii)Notwithstanding JCC18.15.1130, in no instance may structures exceed 35 feet in height. 31 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 (b)Vegetation Retention and Perimeter Buffering. Existing vegetation should be maintained to the maximum extent practicable in order to reduce soil erosion, provide habitat for wildlife, screen light industrial uses from view, and maintain the predevelopment hydrologic regime. Additionally, the Port shall maintain a minimum 50- foot-wide buffer along the outer perimeter of each ownership parcel (i.e., not leasehold parcels created through a future binding site plan process) within the overlay to screen industrial uses from view and maintain the unincorporated rural aesthetic values of the locale. (c)Low Impact Development (“LID”). Development occurring within the Airport Overlay III shall incorporate low impact development practices to the maximum extent feasible. The most recent edition of the Low Impact Development Technical Guidance Manual for Puget Sound (May 2005), developed by the Puget Sound Action Team in collaboration with the Washington State Department of Ecology, shall be used as a primary source by the county in reviewing and mitigating development occurring within the overlay district. \[Ord. 11-09 §2 (Att. B)\] (5) Other Regulations. Parcels within the JCIA-III overlay are subject to all applicable provisions of JCC Title 18, as well as regulations and restrictions established by the FAA (e.g., Building Restriction Lines (“BRLs”) and Object Free Areas (“OFAs”)). 32 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Figure 3. Addition to AEPF (grey with crosshatch) 33 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Figure 4.Areas added to Airport Overlay III Review of Airport Overlay III as modified: Zoning south of the proposed Airport Overlay III is primarily RR-10, with the immediate area west of SR 20 zoned RR-5. The area between the AEPF and Four Corners Neighborhood/Visitor Crossroads (“NC”) Jefferson County already allows the Rural Residential zone to abut the LI/M JCIA-III zone, which the proposed amendment will not alter. The existing buffers outlined in the UDC for the LI/M JCIA-III zone are not changed by this amendment, which will preserve the interface between these two zones. Additionally, there will be opportunities for review and conditioning of specific project proposals within this area. If it is determined that additional conditioning is needed for development on one of these specific parcels, these conditions can be added at the project permitting stage. These properties currently allow uses which would require the use of septic systems. Any future inclusion of these parcels in the JCIA-III zone would not change the need to develop a septic 34 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 system. Future development on these parcels by The Port of Port Townsend would include on- site or community septic. The UDC requires that development in the Airport Overlay IIIadheres to Low Impact Development standards, which means that stormwater would be dealt with on site. The continued operation of the existing airport is likely to be the principal adverse noise impact in the area, although air traffic noise is intermittent and light industrial and manufacturing noise may be more continuous in nature. The development of future Light Industrial and Manufacturing facilities will be accompanied by the 50-foot-wide minimum buffers required of each parcel in the Airport Overlay IIIarea. This buffer will also mitigate the impacts from any future light pollution. Four Corners Neighborhood/Visitor Crossroads (“NC”) Limited Area of More Intensive Rural Development (“LAMIRD”) is situated south of the AEPF generally at the intersection of Four Corners Road (S. Discovery Road on the west side of the intersection) and SR 20. The area between the AEPF and Four Corners NC is characterized by residential uses, including Moore’s Mobile Manor residential park, and the Jefferson Transit facility. Cumulative Impact Analysis: Pursuant to JCC 18.450.080(1)(b), the Planning Commission and Board of County Commissioners shall develop findings and conclusions that consider specific criteria.Those criteria, and staff evaluations, follow. Cumulative Impact Analysis -Jefferson County Airport Light Industrial/Manufacturing Overlay Expansion UDC/JCC CriterionStaff Evaluation Is growth and development as envisioned in the The growth rate in the County is occurring Comprehensive Plan occurring faster or slower slower than anticipated. The projected growth than anticipated, or is failing to materialize?rate in the 2018 Comprehensive Plan for the County was 0.98% per year. The realized population growth rate for 2022-2023 was merely 0.22%. Since 2010, the average growth rate has only been 0.1% in the County. Allowing additional land for Light Industrial/Manufacturing uses will provide additional economic growth opportunities. Has the capacity of the county to provide County continues to be equipped to provide the adequate services diminished or increased?same levels of service that were available when the comprehensive plan was passed in 2018. 35 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 The county has planned to provide more services to some areas such as the Irondale and Port Hadlock Urban Growth Area. Is sufficient urban land designated and zoned to This Proposed Amendmentis related to rural meet projected demand and need?land. This Proposed Amendmentrequests a new mechanism be created to add parcels to the Jefferson County International Airport Overlay III (“JCIA-III”), which is a part of the Essential Public Facilities-Airport (“EPF-A”) designation, which is under the general comprehensive plan category of Essential Public Facilities. Creating a new mechanism to addparcels to this overlay zone will help the airport meet projected job needs. The Port of Port Townsend anticipates that additional JCIA-III parcels will create industrial jobs by allowing non-aviation uses as part of the expanded EPF-A zone. Are any of the assumptions upon which the Underlying assumptions have changed since the Jefferson County Comprehensive Plan is based Comprehensive Plan was last written. While the no longer valid, or is new information available demand for employment continues, several that was not considered during the adoption business owners in the surrounding area are process or any annual amendments of the struggling due to rising lease costs. This Jefferson County Comprehensive Plan?amendment would allow the airport to create industrial and aviation-compatible lands to preserve existing and create new employment opportunities. Does the proposed amendment reflect the Jefferson County residents value jobs that allow current widely held values of the residents of them to live where they work. Increasing the land available for industrial and manufacturing Jefferson County? uses will have two benefits immediately felt by residents: land available for local businesses to rent, and an increase in the job capacity for the area. This Proposed Amendmentwill ultimately add employment opportunities to the area. Do changes in county-wide attitudes A change in county-wide attitude has not necessitate amendments to the goals of the necessitated an amendment to the goals of the plan and the basic values embodied within the plan or the basic values. This Proposed Comprehensive Plan Vision Statement? 36 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Amendmentaligns with the goals and values of the plan. Do changes in circumstances dictate a need for As property values in the county have increased, amendment?rental costs for businesses surrounding the Airport have increased. Port-owned light industrial/manufacturing-zoned parcels would provide additional means for economic growth. Future additions to this overlay will provide a mechanism for continued economic growth and greater access to appropriately zoned land for local businesses. Do inconsistencies exist between the This Proposed Amendmentdoes not seek to Comprehensive Plan and the GMA or the rectify any inconsistencies between the Comprehensive Plan and the County-wide Comprehensive Plan and the GMA or the Planning Policy for Jefferson County?Comprehensive Plan and the County-wide Planning Policies for the county. Have circumstances related to the proposed Circumstances related to the proposed amendment and/or the area in which it is amendment and/or the area in which it is located substantially changed since the located have changed since the adoption of the adoption of the Jefferson County Jefferson County Comprehensive Plan. While Comprehensive Plan?the demand for employment continues, several business owners in the surrounding area are struggling due to rising lease costs. This amendment would allow the airport to create industrial and aviation-compatible lands to preserve existing and create new employment opportunities. The proposed text amendment meets Transportation Impacts: While it is likely that concurrency requirements for transportation both Four Corners Rd and SR 20 have existing and does not adversely affect the adopted level capacity for increased traffic volume, future of service standards for other public facilities capacity concerns lie with intersection level of and services (e.g., sheriff, fire and emergency serviceand appropriate roadway access to SR 20 medical services, parks, fire flow, and general (12-acre addition to AEPF). Project-level governmental services);considerations would requirereviewwith WSDOTinvolvement.Traffic analysis was done for the 24-acre Airport Overlay III site in 2009, finding a possible increase of 49 average daily trips on Four Corners Road per 100 employees. 37 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 At this phase of review, there is no expected exceedance of roadway level of service, or in the demand for other public facilities and services resulting from this Proposed Amendment. Any project action resultingfrom this proposed change would be reviewed for transportation, public facility, and services concurrency requirements using the appropriate processes. The proposed text amendment is consistent This proposed amendment is consistent with the with the goals, policies and implementation following Comprehensive Plan Goals: strategies of the various elements of the Jefferson County Comprehensive Plan;LU-G-5: “Identify and designate lands for both public purposes, public facilities, and essential public facilities,” ED-G-3: “Support Jefferson County’s industries that leverage existing strengths, advantages, and potential in the following areas… Port- related economic development,” ED-P-3.1 Support the efforts of the Port of Port Townsend in diversifying the Jefferson County ) to provide for a International Airport (“JCIA” broader number of trades, manufacturing, and services. This may include but is not limited to, the siting of appropriately scaled aviation and non-aviation-related industrial/manufacturing activities in the Airport Essential Public Facilities District. CF-G-9: “Regulate the siting of essential public facilities consistent with the GMA and to meet public service needs,” CF-G-10, “Ensure the continued viability of the Jefferson County International Airport as a transportation hub,” CF-G-11, “Ensure continuation of the airport as a safe and efficient essential public facility,” The proposed text amendment will not result in This Proposed Amendmentwill result in probable significant adverse impacts to the increased capital facility capacity and will not 38 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 county’stransportation network, capital have adverse impacts on the transportation facilities, utilities, parks, and environmental network, utilities, parks, and environmental features that cannot be mitigated, and will not features that cannot be mitigated. Any project place uncompensated burdens upon existing or action resulting from this proposed non-project planned service capabilities;change would be reviewed foradverse impacts to these facilities using the appropriate review process. In the case of a text amendment to the Land Use Access to all the parcels within the maximum Map, that the subject parcels are physically extent proposed for the light suitable for the requested land use designation industrial/manufacturing overlay is provided by and the anticipated land use development, existing roads. Utilities are currently available on including, but not limited to, the following:many of the sites. Any potential future site A. Access;improvements required to provide sufficient B. Provision of utilities; and access and utility provision will be coordinated C. Compatibility with existing and planned with the county. surrounding land uses.The landuse surrounding the EPF-A area is currently all rural residential, limited to a density of five acres per dwelling unit or ten acres per dwelling unit. These rural residential parcels currently border Airport Overlay IIIand EPF-A properties. The proposed additions to the EPF-A and Airport Overlay IIIwould not change the compatibility with the planned surrounding land uses.There are Jefferson Transit bus stops both northbound and southbound along SR 20 within the AEPF. The proposed text amendment will not create a The proposed textamendment would not create pressure to change the land use designation of a pressure to change the land use designation of other properties, unless the change of land use any other properties. The land use designation designation for other properties is in the long-changes are limited to the parcels in question for term best interests of the county as a whole;this Proposed Amendment. The proposed text amendment does not The proposed text amendment would not materially affect the land use and population materially affect the land use and population growth projections that are the bases of the growth projections that are the bases of the Comprehensive Plan;comprehensive plan. If within an unincorporated urban growth area The proposed amendment is not within an (UGA), the proposed text amendment does not unincorporated UGA, and thus it does not materially affect the adequacy or availability of materially affect the adequacy or availability of 39 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 urban facilities and services to the immediate urban facilities and services to the immediate area and the overall UGA;area and the overall UGA. The proposed amendment is consistent with the The proposed amendment is consistent with the Growth Management Act (chapter 36.70A Growth Management Act, countywide planning RCW), the County-Wide Planning Policy for policies for Jefferson County, and all other Jefferson County, any other applicable inter-applicable inter-jurisdictional, local, state, or jurisdictional policies or agreements, and any federal laws or policies. Additionally, creating other local, state or federal laws.these economic development opportunities will implement the goals of the Comprehensive Plan as currently adopted. Please provide an explanation of why the The Port's mission is to build and maintain amendment is being proposed.infrastructure that sustains economic vitality in the community. The Non-Aviation Light Industrial/Manufacturing overlay provides local businesses with an opportunity for growth and to create more jobs. Incorporating more land into this zone will allow higher job-dense land uses than their current designations within the RR-5/ RR-10 zoning districts. Supplemental Sheet for Non-Project Actions: The following environmental analysis is presented in the format ofthe Non-Project Action Supplemental Sheet to the Environmental Checklist developed by the Department of Ecology pursuant to the State Environmental Policy Act (“SEPA”). Question #1. How would the proposal be likely to increase discharge to water; emissions to air; production, storage, or release of toxic or hazardous substances; or production of noise? Increases in discharges, emissions, production, storage, or release of toxic or hazardous substances are not likely to result from the adoption of this proposed Comprehensive Plan amendment. Existing policies and regulations at the county and state level are designed to reduce discharges to water and impacts on the natural environment. In addition, individual projects in this area are required to connect to the Quimper public water system and receive septic approval, as well as comply with the policies and regulations of the county’s municipal code and development standards. Air emissions are also regulated by the Puget Sound Clean Air Agency. Storage and handling of any chemicals regulated by the Occupational Safety and Health 40 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Administration (“OSHA”). Emissions will be reviewed at the time of the subsequent permit applications. Proposed measures to avoid or reduce such increases are: Jefferson County Code and associated development regulations (title18JCC) Jefferson County Code Health and Safety (title 8 JCC) Jefferson County Code Buildings and Construction (title15JCC) The proposed code amendment does not alter codes regulating water, air, and noise pollution. Therefore, there are no anticipated impacts nor mitigation measures proposed. Question #2. How would the proposal be likely to affect plants, animals, fish, or marine life? None anticipated. There are no direct impacts on plants, animals,fish, or marine life from the proposed amendment. All new development shall demonstrate compliance with the County’s critical areas regulations in chapter18.22JCC prior to permit approval. Proposed measures to protect or conserve plants, animals, fish, or marine life are: •Future development is required to meet the County’s adopted critical areas regulations which include impacts to steep slopes, wetlands, and fish and wildlife habitat. •In addition, projects that impact wetlands or marine/fresh waters are subject to the permitting requirements of the Corp of Engineers, Department of Fish and Wildlife and the Department of Ecology. Question#3. How would the proposal be likely to deplete energy or natural resources? This project is a non-project action. The proposed amendment will not impact energy or natural resources. All subsequent development will be subject to compliance with the JCC. Proposed measures to protect or conserve energy and natural resources are: None at this time. Future developments will be reviewed on a case-by-case basis for compliance with county building codes, critical area protection standards, and state energy codes. Question #4. How would the proposal be likely to use or affect environmentally sensitive areas or areas designated (or eligible or under study) for governmental protection, such as parks, 41 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 wilderness, wild and scenic rivers, threatened or endangered species habitat, historic or cultural sites, wetlands, floodplains, or prime farmlands? Due to soils and subsurface conditions the proposed area Airport Overlay III area is underlain by designated “Special Aquifer Recharge Protection Areas” (“SARPA”) and SARPA-“Susceptible”. There are protection standards in chapter 18.22 JCC that will apply to development to protect water quality. Much of the Airport Overlay III area is designated as “Seismic Soil” which may require special building codes for protections against liquefaction. Considering the application of existing development code provisions to all developments, the proposed amendment will not have deleterious effectson critical areas, historic of cultural resources,prime farmlands, parks, or scenic corridors. There is therefore no net loss of ecological functions and values, or loss of agricultural, historic, or cultural, or recreational resources due to the proposed action. Proposed measures to protect such resources or to avoid or reduce impacts are: See response above. State law requires protection of cultural sites and critical areas. Future developments will be reviewed on a case-by-case basis for compliance with county and state codes. Question #5. How would the proposal be likely to affect land and shoreline use, including whether it would allow or encourage land or shoreline uses incompatible with existing plans? TheProposed Amendmentwillchangethe permitted,conditional,and non-permitteduseson severalparcelsneartheairport.However,future developmentproposalsstemmingfromthe amendmentwillnotbeincompatiblewithexistingplansbecausethisisadirectamendmentto theComprehensivePlan and UDC.Landuseonthe parcelsreceivingazoningand overlaychange mayshifttomore aviationfacilitiesandnon-aviation-related lightmanufacturingand industrial use.Allfuturedevelopmentswillbe reviewedona case-by-case basisforcompatibilitywith permitted,conditional,andnon-permitted landuses. The Port’s mission is to build and maintain infrastructure that sustains long-term economic vitality of the community and make investments in infrastructure that will support the creation of jobs. Proposed measures to avoid or reduce shoreline and land use impacts are: None at this time. All future developments will be reviewed for consistency with the land use code (title18JCC). Question #6. How would the proposal be likely to increase demands on transportation or public services and utilities? 42 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Road access to the AEPF additionparcelsto the west will likely be from SR 20, and internal connectivity within the expandedAirport Overlay III roadway system is anticipated, allowing traffic to also use the Four Corners Road access. There is existing road accessfrom the AEPF addition parcels to SR 20 ca. 1,360 feet north of the intersection of Four Corners Road and SR 20. There be a need for additional traffic/access modifications or analysis.Washington State Department of Transportation (“WSDOT”) will need to provide review or updated road access permit at the time of project-specific development. Road access to the AEPF via Four Corners Road is being developed for the existing 24-acre Airport Overlay IIIthrough APN 001334004.Four Corners Road is a county owned and designated “minor collector”, connecting SR 19 (a.k.a. Airport Cutoff Road), designated “minor arterial”, with SR 20, designated “highway”. The Four Corners access parcel isno longer being proposed to be added to theAEPF. The thought being, there will be no Light Industrial/manufacturingintensity of use on thisparcel and therefore does not need to be within the AEPF or FAA Airport Layout Plan.The Port of Port Townsend plans to providelandscapingand access developmentthatfits within local conditions. Evaluation at this phase as anon-project action is donewith incomplete information which would be provided at a project action phase. It is likely that detailed transportation analysis of SR 20 access, roadway level of service, and intersection level of service, would accompany project- specific proposals. This phase of the Proposed Amendmentdoes not demonstrateanimpact on transportation or public services and utilities. All future development will be reviewed on a case- by-case basis for significant impacts to transportation or public services and utilities. Proposed measures to reduce or respond to such demand(s) are: None at this time. All future developments will be reviewed for potential significant impacts to transportation or public services and utilities and may have to comply with mitigation policies. Question #7. Identify, if possible, whether the proposal may conflict with local, state, or federal laws or requirements for the protection of the environment. The proposed amendment will not affect any local, state, or federal laws. Future developments will be required to meet all county, state, and federal laws applicable toenvironmental protection requirements. 43 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 FUTURE ANALYSIS AND PUBLIC REVIEW PROCESS The proposed UDC text amendment removes the requirement of a Binding Site Plan (“BSP”). A BSP requires public notice (a comment period) and is an appropriate land division process for the Port of Port Townsend at the existing 24-acre site. But a BSP may not be applicable to other development proposals elsewhere in the expanded Airport Overlay III. The site planning and development for the existing 24-acre parcel will be through a permit process that includes public notice and comment. There is someconcern that an appropriate level of public participation be part of future development proposals in the overlay. Because the anticipated scale and intensity of development and use of future proposals within the expanded Airport Overlay III are currently unknown, it is not known if the applicable permit process would trigger a publiccomment period or SEPA review. If development plans do not exceed adopted thresholds, the project would be categorically exempt and SEPA would not be triggered. Public notice is provided for Type II through Type V approval processes. A Type I process with SEPA review also triggers a public notice requirement. Type I alone, such as minor site development and a building permit, does not have a public notice requirement.A definite public notice process is not certain to solicit public input on the potential wider impacts of the rural light industrial park development within Airport Overlay III. Other Potential Avenues to Address Identified Public Process and Area-Wide Impact Concerns: Airport Master Planning/Industrial Site Readiness Grant Planning Process: The Portof Port Townsendwill be conducting an update to the Airport Master Plan in 2025. The concept-level planning being advanced under the Industrial Site Readiness Grant between now and the end of June 2025 may be conducted as part of the Master Plan Update process.The Master Planning process will be a public process, involving agencies and citizens, and will offer a full and fair opportunity for any concerns regarding Overlay-III uses south of the BRL to be identified and addressed. Development Agreement: Another potential mechanism to provide an opportunity for public input on the proposed expansion to the Overlay-III/rural light industrial park is a Development Agreement under JCC 18.40.820 et seq. These are discretionary, and under the County’s code, would be processed as a Type V permit (Planning Commission public hearing/recommendation; Board decision) – even though the decision is considered to be “administrative” rather than “legislative”.This mechanism could provide an avenue to outline the maximum scope of impacts anticipated, and would also serve to vest future development and use to the current code requirements for an agreed upon period of time.In addition to requiring Planning Commission recommendation and approval by the County Commission, the Port of Port Townsendwould also need to obtain authorization from the Port Commission to enter into a Development Agreement for the rural light industrial park. 44 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 Staff Recommendation The Staff Recommendation in the September 4, 2024 Staff Report is not changed. Staff recommends adoption withthe findings of this Supplement. 4.Attachments Comment Record: Only one comment, the comment below, was received during the hearing process. PORT OF PORT TOWNSEND Requested Changes to Proposed Amendatory Ordinance (Appendix D, Exhibit 1 – Proposed Amendments to CP and Ch.18.15 JCC) Entered as Testimony by Eric Toews, Port Deputy Director, Planning Commission Public Hearing, September 18, 2024 AIRPORT OVERLAY AMENDMENTS Comprehensive Plan Proposed Amendatory Language Amend the relevant portion of Exhibit 1-11, “Summary of Land Use& Zoning Designations”, Page 1-20, to read as follows: Land Use/Zoning Criteria for designationPrincipal DesignationLand Use INDUSTRIAL Light Industrial/Quilcene Industrial AreaLight Industrial Manufacturing Eastview Industrial Plat (LI/M)(JCIA LI/M Overlay III, consisting of 24 acres, Assessor’s Parcel No. 001-331-005in the AEPF Amend Exhibit 1-20, “Location of Rural Industrial Lands”, Page 1-20, to accurately depict the location and extent of the JCIA LI/M Overlay: \[RESERVED - PLEASE SEE INFORMATIONAL EXHIBIT “B” - ATTACHED\] \[Please note: Two graphics have been provided (see attached) to assist the Planning Commission in its deliberations: 1) Exhibit “A”, “Conversion from RR-5 to EPF-A”, depicting the requested expansion to the essential public facility land use designation and zoning; and 2) Exhibit “B”, “Conversion to Overlay III”, depicting the proposed expansion to the Overlay III within the bounds of the expanded AEPF designation/zone. These are intended to serve as a guide to the preparation of formal exhibits to be included within the Plan/Code.\] Amend the map, “Jefferson County International Airport – Non-Aviation Related Light Industrial/Manufacturing Overlay”, Page 1-91, to accurately depict the expanded location andextent of the JCIA LI/M Overlay: 45 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 \[RESERVED - PLEASE SEE INFORMATIONAL EXHIBIT “B” - ATTACHED\] Amend the first paragraph under the heading “Air, Waterborne, & Freight Travel”, Page 6-7, to read as follows: The Jefferson County International Airport (JCIA) is owned and operated by the Port of Port Townsend. It is situated about four miles southwest of the City of Port Townsend on about 316 acres. Its runway is about 3,000 feet in length, and over 107 aircraft are based there. The Airport is designated as a General Aviation (GA) airport by the FAA’s National Plan of Integrated Airport Systems (NPIAS). In 2010, the total operations equaled approximately 58,030, a small percentage of which arewereair taxi and commuter service and the majority of which areweregeneral aviation flights,. Airport use is anticipated to increase in the future. The Port’s currentAirport Master Plan Update (July, 2014) identifies an expansion plan to meet a 2.8% growth rate for its 107 based aircraft and to stay within FAA requirements for safety and efficient airside and landing facilities. The Port will applyappliesfor airport development grants for eligible components of its preferred airport layout plan. Ancillary uses of the facility which attracts public interest and increases use inatthe airport includes businesses and organizations such as an aero museum, aflight instruction school, airplane mechanics, anairplane restoration school, restaurant, and 24 acresareasdesignatedin 2009 (Ord. No. 11-1215-09)for non-aviation-related light industrial/manufacturing development. The airport is designated and zoned as an Essential Public Facility by Jefferson County. Some airport master plan recommendations address height, noise, and other factors. (Port of Port Townsend, 2014) The FAA-approved Airport Master Plan describes the Port’s goals and objectives for the future maintenance, modernization, and/or expansion of the facility. It is a guidance document that outlines key planning and development issues and provides recommendations on a wide range of issues (e.g., building heights, noise, etc.). The Port is initiating a process to update the Master Plan in 2025. Amend the second and third paragraphs under the heading “Industrial & Manufacturing Businesses”, Page 7- 20, to read as follows: Industrial sites in Jefferson County include the Port of Port Townsend, Port Townsend Industrial Park (which has become a commercial and business park), Glen Cove, Eastview, Quilcene Industrial Area, the Irondale/Port Hadlock UGA, the Port Townsend Paper Company, 24 acres at aRural Light Industrial Parkat the Jefferson County International Airport, and Resource Based Industrial zoned sites. In addition to the industrial sites described above, the light industrial manufacturing park at the Jefferson County International Airport, also known as the Airport “JCIA RuralLight Industrial Park”also allows non-aviation related industrial and manufacturing uses. In 2009, the County approved a rezone of 24 acres from rural residential to Airport Essential PublicFacility capable of supporting up to ten small to medium sized low impact, non-aviation-related light industrial/manufacturing businesses. As of 2017 the site requires a Binding Site Plan, clearing and installation of infrastructure before any business operations. Compliance with all applicable provisions of the Jefferson County Code (JCC), including but not limited to Chapters 18.20 and 18.30 JCC and the development standards established for the Airport Overlay III in JCC 18.15.453, together with relevant provisions of the FAA-approved Airport Master Plan, is required prior to development within the Rural Light Industrial Park. This will ensure installation of all necessary infrastructure and utility improvements to support development and use, as wellas implementation of low impact development techniques. Unified Development Code Proposed Amendatory Language Amend Article III-A, “Jefferson County Airport Essential Public Facility District”, JCC 18.15.1110 “Designated”, to read as follows: The Jefferson County International Airport (JCIA) is a general purpose, public aviation airport that provides recreational, business, flight training, charter and air taxi services and other uses. The airport essential public facility 46 Jefferson County 2024 Comprehensive Plan Amendment Supplemental Staff Report & SEPA Addendum October 10, 2024 district designation (see the official Jefferson County Comprehensive Plan land use designations map) shall apply to the following: (1)Parcels designated as an airport essential public facility on the official Jefferson County Comprehensive Plan land use designations map; (2)Any parcel or parcels (a) subsequently acquired by the Port in accordance with the provisions of the approved JCIA master planand depicted on the Airport Layout Plan (ALP) Map of the FAA-approved Airport Master Plan;or (b) currently owned by the Port, which are approved for inclusion in the airport essential public facility district through the Jefferson County Comprehensive Plan text and land use amendment process, or any other applicable process. \[Ord. 8-06 § 1\] Amend Article III-A, “Jefferson County Airport Essential Public Facility District”, JCC 18.15.453 “Airport Overlay III”, to read as follows: (1)Purpose. The purpose of the Airport Overlay III is to provide a limited opportunity for rural scale non- aviation-related industrial uses that contribute to the long-term financial viability of the AEPF and to enhance the economic vitality and quality of life for the citizens of Jefferson County. (2)Overlay Map. Jefferson County will prepare and maintain an Airport Overlay III map that identifies the parcelslocated within the overlay. (3)Other Regulations. Parcels within the JCIA-III overlay are subject to all applicable provisions of JCC Title 18, as well as regulations and restrictions established by the FAA (e.g., Building Restriction Lines (BRLs) and Object Free Areas (OFAs)). 47 November 18, 2024 Board of County Commissioners via email: JeffBoCC@co.jefferson.wa.us RE: City of Port Townsend’s Support of County proposal to expand the Port Townsend Urban Growth Area (UGA) boundary to include publicly-owned parcels of public purpose uses, including the Caswell-Brown Village for housing services. Parcel Numbers: Assessor Parcel Numbers: 001162022, 001162001, 001162002, 001162003, 001162004, 001162015, 001161001, 001162017 Greetings Commissioners: The Port Townsend City Council reviewed the County Supplemental staff report and SEPA addendum supporting a limited expansion of the Port Townsend UGA to include Caswell-Brown property and a limited number of adjacent public parcels for access to City of Port Townsend urban services. After review and discussion, the Council voted to support the proposal, aligning with the County’s staff report and emphasizing the following: County Staff Report: “Either the subject parcels themselves already contain urban-style development or they are located in close proximity to urban development, and by either measure, the subject area is appropriate for urban growth. The growth pattern on or near these lands makes the parcels incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural resource lands designated pursuant to RCW 36.70A.170. The parcels are located in close proximity to urban services, including but not limited to the City of Port Townsend’s regional stormwater system, sanitary sewer system, domestic water system, street cleaning services, fire and police protection services, public transit services, healthcare and medical services, and other public utilities associated with urban areas and normally not associated with rural areas.” City supplemental finding: The City of Port Townsend supports adoption of a City Capital Improvement Plan (CIP) and General Sewer Plan (GSP) that ensures capacity for the expanded UGA service area. A lift station to serve this area is funded in the 2022-2028 Capital Improvement Plan and a sewer connection to CBV is listed in the proposed 2024-2010 CIP. The City Council will hold a public hearing on November 18, 2024 on the proposed GSP and on December 2, 2024 on the CIP update with final action on both anticipated to occur on or before December 16, 2024. The City SEPA administrator signed a SEPA Determination of Non-Significance (DNS) on the CIP with comments or appeals due November 28, 2024. She also signed a SEPA DNS on the GSP October 8, 2024. No appeal or comments were received. Additionally, the County applied for a Connecting Housing through Infrastructure Grant (CHIP) grant from the Department of Commerce to extend utilities and recapture of the City’s System Development Charge fee deferrals that are made available for low-income housing development like Caswell Brown. This UGA extension allows both the City and County to partner in providing efficient services for all economic segments of our community. County Staff Report: “The Caswell-Brown Village (“CBV”) on Mill Road refers to the combined 50-bed emergency shelter with permanent supportive housing and a 40-lot park consisting primarily of recreational vehicles and tiny shelters to provide housing for persons experiencing housing insecurity. . . The CBV currently has 50 tiny shelters available to unhoused people, and OlyCAP is working to build a permanent support housing on site. It will be a continuum of care housing facility operated by OlyCAP on a long-term lease with the County.” City supplemental finding: The City supports urgent UGA expansion to be eligible for and secure Connecting Housing through Infrastructure Grant (CHIP) funding from the Department of Commerce, which requires that Caswell Brown be fully within a UGA boundary. Moreover, there is an overriding public interest and public benefit to include the proposed parcels within the UGA to protect public health and safety by avoiding installation of a large onsite septic system and enabling efficient service of sewer and water. The City has adopted an Emergency Shelter and Housing ordinance (Ordinance 3335) that classifies a site such as CBV as a “Continuum of Care Facility” due to the mixed types of emergency, tiny shelter, and safe parking available. This housing proposal both alleviates current stressors to provide emergency shelter at the County-run American Legion shelter and provides a path forward to meet a variety of shelter needs for the unhoused population. The City used the parcel data in its Land Capacity Analysis to determine if any other suitable locations exist within the UGA for a facility matching CBV. Staff referenced the Dept of Commerce Book 2 Guidance for Updating Your Housing Element, and analyzed UGA capacity for emergency housing needs using Option B, the assumed density method. The City of PT UGA does not contain a property with government site control that can accommodate similar densities of that provided by a regionally comparable facility that is also zoned to allow emergency shelter facilities such as CBV. For purposes of regional analysis, the City used Serenity House in Port Angeles as a comparator, which offers beds at the density of 99 per acre (188 beds approved in the City of PA Conditional Use Permit staff report on 1.89 acres). Additionally, Serenity House offers multiple safe parking stalls and tent camping sites. It is the closest regional land use to Port Townsend’ definition of a Continuum of Care Facility. Three privately-owned large properties that could accommodate a facility the size of Caswell Brown at Serenity House densities. However, each lacked sufficient utilities, street access, or adequate unit densities with critical areas deductions to be viable. The City owns a property as part of its Affordable Housing Inventory (the “Lewinsky” property), but it also lacks utilities and contains critical areas. The Lewinsky property is not zoned for Emergency Shelters or Continuum of Care facilities. The Housing Action Plan Tool (HAPT) projects a need of 280 units of emergency housing for the 20-year planning period in the City of Port Townsend UGA. The CBV must be successful to help meaningfully defray the need for 280 emergency housing beds in the Port Townsend UGA. County Staff Report: “The zoning would change from Rural Residential (RR 1:20 and RR 1:5) to UGA Public. The area proposed to be included within the Port Townsend UGA is characterized by urban growth.” City supplemental finding: The City of Port Townsend concurs that this area is characterized by urban growth. As part of the 2025 Periodic Update of the City’s Comprehensive Plan, the City will amend its map and plans to ensure consistency with the BoCC’s decision on this UGA boundary adjustment matter. The preliminary docket will be decided in early 2025. If BoCC action is taken, Council will approve a docket item to make responsive changes. In closing the City of Port Townsend greatly appreciates partnership with Jefferson County to help solve our affordable housing emergency and address our respective Growth Management Act Housing Comprehensive Plan goals. These efforts also reflect the cooperative effort to fulfill Growth Management Act requirements and be consistent with Countywide Planning Policies. We look forward to moving forward on this proposal in lockstep with our CIP and GSP and Periodic Update next year. Sincerely, David J. Faber Mayor of Port Townsend Cc: Josh Peters, Jefferson County Dept of Community Development Director; Ted Vanega, Department of Commerce; Emma Bolin, City of PT Planning and Community Development Director Agenda Bill AB24-167 Meeting Date: November 18, 2024 Agenda Item: XIII.B Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Steve King / Andre Harper Date Submitted: November 15, 2024 Department: Public Works Contact Phone: (360) 379-45088 SUBJECT: Move to authorize the City Manager to sign a contract with Active Construction Incorporated (ACI) for construction of the Water Street Sewer Replacement Project in the amount of $ 2,360,360including WSST and enter into agreement with RH2 Inc. Consulting Firm and other firms necessary to provide construction managementservices. CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: See below Staff Report Ordinance Included in Budget? Yes No Contract Approval Motion: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: 415 Water Sewer CIP SUMMARY STATEMENT: The Water Street Sewer Main which serves all Downtown and most of Uptown is nearingthe end of its effective and reliable service life. The main’s 14”AC gravity sectionextending fromthe Ferry Terminal’s intersection to Gain’s Street Lift Station is in dire need of repair and replacement. On December 27, 2022, a section of the sewer main at the corner of Water Street and Gaines Street failed causing a sinkhole. Crews quickly responded under emergency order and repaired a 120’ section. Once again, on August 31, 2024, another section of pipe failed near the Ferry terminal. Approximately, 370 feet of pipe was replaced by Seton during this emergency repair. Both emergency repairs were slated for upgrades under the Water Street Sewer Repair and Replacement Project. The project connects the sections of pipe repaired by replacing the 14” AC main extending form the Ferry Terminal’s intersection to the gains Street Lift Station. Project redesign now includes extending the City’s existing Monroe Lift Station force main by approximately 1,850 linear feet via horizontal directional drilling and open- cut parallel to 1,830 linear feet of existing gravity sewer main. The existing gravity sewer main will be sliplined to serve the businesses and residences along Water Street. The work also includes traffic control, temporary sewer bypasses, manhole rehabilitations, side sewer reinstatements, abandonment, restoration and coordination for construction sequencing. December 27, 2022 Failure August 31, 2024 Failure The project website includes more details about the project: https://cityofpt.us/engagept/page/water-street-sewer-replacement-project-0 The City securedPublic WorksTrust Fund Loan/Grant in November 2023to begin the design process. Additional funding through System Development Charges (SDC’s) are also allocated to the project. Contractor equipment mobilization is anticipated to begin in late December. The Water Street Sewer Replacement Project is scheduled to begin construction on or near January 10, 2025. Over the last couple of years, City staff and RH2 Inc. have been working on the final design implementing the design concept approved by Council. The project was advertised for bid on November 13, 2024. Two contractors submitted bids with the lowest responsive bidder being ACI. The low bid for the project came in at $2,360,360. With budget funding currently allocated for emergency repair work, More Lift Station hardware (three new impellers needed for force main extension), and consultant design, project budget is above the engineer’s estimate. The bid tabulations are attached for reference. Based on the bids received, the new total project cost is approximately $3,156,510 which are Loan/grant eligible up to the awarded amount. The attached project budget sheet illustrates the change in the project budgetshowing the increase in city sewer funds required if the bids are accepted by the City Council. The project cost has increased a total of $318,310 including $100,000 in contingency requiring $318,310 additional sewer funds to be applied to the project. This approval also includes budget to cover additional design costs of $19,000 and services during construction estimated at $41,000. The cost increases for the project are justified as it reflects additional pipe discovered that needed to be replaced once surveys were completed. Ironically, this additional pipe was also the same pipe that failed next to the Ferry Terminal. In summary, staff is recommending awarding this project with the cost increases based on the bids received. The receipt of the Public Works Board Grant and Loan combination offsets the cost impacts to the City sewer utility. If approved, construction is anticipated to begin after the New Year with an expected construction timeline of 11.4 weeks. ATTACHMENTS: 1. Bid Tabulation (Water Street Sewer Replacement) 2. Budget Funding Sheet (Water Street Sewer Replacement) CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION:Move to authorizethe City Manager to enter into contracts with: ACI Inc.Inc. for the Water Street Sewer Replace Project constructionin an amount of $2,360,360.00; RH2 Inc., Inc. for the Water Street Sewer Replace Project construction management services in an amount of $41,000.00; ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Other: Absent LocationChambers Chambers Port Pavilion Chambers Chambers Jeff Co Chambers Chambers Chambers Chambers Chambers Chambers or 12/16 - Sewer Plan and ) – scope) www.cityofpt.us minute update briefing & discussion - deliberation, and adoption of final website Water Street Sewer Replacement City Public Hearing on Revenues and property tax – Item See Capital Budget presentations SCHEDULE reading, budget, CITY OFFICES CLOSED CITY OFFICES CLOSED Agenda nd -- change. Continued (and 2025 fee schedule)Budget: Letter of Support to Jefferson County relating to UGA expansion for Caswell Brown Bid award Public Hearing Proposed 2024 General Sewer Plan Appointment/Reappo intment: Arts Commission Q2 Financial Reports consent Amended Ecology Loan Application (outfall)Special Presentation: Police Officer Swearing In Special Presentation: Golf Park Annual Report Encampment update 2 2025 budget Emergency preparedness update (broad 5290 Chapter 20 PTMC amendments hearing First reading Comp Plan Amendment CFP Comprehensive Plan 15around docketing timeline and HSA (possible joint workshop with PC) to MEETINGS Tentative HOLIDAYCANCELED CANCELED HOLIDAY subject CITY only, draft is schedule (This Meeting of TypeCity Council Business Meeting Public Art Committee Intergovernmental Collaborative Group (ICG) Special Session Council Finance and Budget CommParks, Recreation, Trees and Trails Advisory Bd Jefferson County Housing Fund Board Council Finance and Budget Committee Planning Commission City Council Business Meeting Historic Preservation Committee Council Infrastructure and Development CommArts Commission City Council Workshop Meeting Time6:00 3:005:003:004:302:30 3:006:30 6:00 3:003:003:00 6:00 9 2 4 Nov 21 Nov 28 DateNov 18 Nov 21 Nov 25Nov 26Nov 27 Nov 28Nov 28 Nov 2Dec Dec 3Dec Dec 5 Dec 9 DayMon ThursThursMonTuesWed Thurs ThursThurs Fri Mon TuesWedThurs Mon Pink House Chambers Chambers Chambers Chambers Chambers Chambers Chambers out Sewer Plan and CFP - - Amendment Legislative Agenda Dec) - /Sheridan Design concept Share th (Nov Standards CITY OFFICES CLOSED CITY OFFICES CLOSED -- 2025 State Forest Lands Assessment HSIP 19PCD Fee updatesSecond Reading Comp Plan 2025 Annual Comp Plan Amendment Cycle Suspended During 2025 Periodic UpdateWater Utility Property Forest AssessmentComprehensive Plan Periodic Update Preliminary Docket Advisory Board Appointment/Reappointment 2025 State Legislative Agenda Design Adoption and Leases (December) HOLIDAYCANCELED CANCELED HOLIDAY Engineering Renewals of Hearings UpdateRecords Management PoliciesMountain View BudgetContract November) Oct.) September, July, May, Apr., Plan (Jan, (February, Update Review Group Library Advisory Board Council Culture and Society Committee Equity, Access and Rights Advisory Board Civil Service Commission Planning Commission City Council Business Meeting Public Art Committee Climate Action Committee Parks, Recreation, Trees and Trails Advisory Bd Comprehensive Workplan City’s 1:003:0012:.304:156:30 6:00 3:00 3:004:30 Collaborative and the to Board Dec 10Dec 11Dec 12Dec 12Dec 12 Dec 16 Dec 19 Dec 24 Dec 24Dec 24 Dec 25 Update TuesWedThursThursThurs Mon Thurs Tues TuesTues Wed IntergovernmentalAdoption of Shoreline Master Program SuggestionCouncil Committee Reports (April, July, October)Period