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HomeMy WebLinkAbout25-016 Dissolving the Fort Worden Lifelong Learning Public Development Authority (PDA)Resolution 25-016 RESOLUTION NO.25-016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, DISSOLVING THE FORT WORDEN LIFELONG LEARNING PUBLIC DEVELOPMENT AUTHORITY (PDA) WHEREAS, The Fort Worden Lifelong Learning Center Public Development Authority (PDA) was originally chartered by the City in 2009 and then reorganized in 2011 "to provide an independent legal entity to manage, promote, develop, secure funding and enhance Fort Worden State Park;" and WHEREAS, The City has respected the independence of the PDA to operate the campus and to manage their financial affairs but has played an increasingly important role in providing financial oversight over the past 3-4 years with a focus on enabling greater financial transparency and solvency; and WHEREAS, With growing concerns raised through the City's financial oversight role and using the new mechanisms available to it through the code changes agreed by City Council in 2021, the City initiated and drafted a corrective action plan for the PDA that was structured as a more collaborative approach through a Memorandum of Understanding (MOU) between the PDA, the City, and Washington State Parks; and WHEREAS, A new interim Executive Director and PDA board members have been highly instrumental in delivering on a cogent and concise strategic planning process and in daylighting the financial realities with a clarity and lucidity that was previously absent; and WHEREAS, Enhanced clarity, progress, and partnership was insufficient to overcome financial and structural challenges that make the PDA's existence increasingly unlikely; and WHEREAS, The PDA board of directors voted on August 1, 2024, to request dissolution of the PDA as per PTMC 2.84.120(A)(1); and WHEREAS, The Superior Court appointment of a receiver put a stay on any consideration of dissolution of the PDA, although this stay was lifted with the termination of the receivership on March 24, 2025, when the Court entered an "Order Granting Receiver's Motion to Distribute Funds, Approve the Final Report and Accounting, Discharge Receiver, Exonerate Bond and Close Case"; and WHEREAS, The requests from the PDA to dissolve itself as an entity, (by resolution of the Board on August 1, 2024 and most recently by letter dated May 19, 2025) constitutes a circumstance listed in PTMC 2.84.120(A)(1) whereby the City Council may initiate dissolution; and WHEREAS, The City Council has considered the dissolution of the PDA and has determined affirmatively that dissolution is warranted on the basis of facts, including but not limited to the PDA's financial insolvency and Washington State Parks' rejection of the PDA's Master Lease; and WHEREAS, As required by PTMC 2.84.120(B), a public hearing was noticed at least 60 days in advance and held on June 2, 2025; Resolution 25-016 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: Section L recitals lncor orated. The above -stated recitals are incorporated herein as if fully set forth below as findings of the City Council. Section 2. Dissolution - Findings. Pursuant to the authority under PTMC 2.84.120, the City Council hereby dissolves the Fort Worden Lifelong Learning Public Development Authority. The City Council affirmatively finds that dissolution is warranted, necessary, and appropriate for the reasons set forth in the recitals and based on the request of the PDA. The City Manager or designee is directed to indicate such dissolution by inscription of "charter cancelled" on the original charter of the PDA, on file with the clerk of the city, and, when available, on the duplicate original in possession of the PDA. Section . DisPOSition of g te=ainin PICA Property. Per PTMC 2.84.120(D), title to all remaining assets property y of PDA vest to the City. To the extent the City receives restitution checks from the "Diane Moody" case, the City Manager shall use such payments to reimburse unpaid vendors, if applicable, and then to the City water utility for unpaid invoices. Section 4. Effective Date. This resolution shall be effective immediately upon its adoption. ADOPTED by the City Council of the City f Port Townsend at a regular meeting thereof, held this 2°d day of June, 2025. Davic J. Mayor Attest: ........ __.. ........ ._.... _.... µ pd`Ro&ZgLies City Clerk