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040626 City Council Business Meeting Packet
PORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. April 6, 2026 • Attend in person or virtually via computer or tablet at jj,gas.//zoom.us/�/98187633367 enter the Webinar ID 98187633367 • Phone only (muted - listen -only mode) United States: Local Dial In — 1(253)215- 8782„981876333674 • Submit public comment to be included in the meeting record to: pj.Ltlas://pubficconi nn ent. fill out. cone /citya t • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clelhs.. pa ort cry o L Call to Order II. Roll Call III. Changes to the Agenda IV. Proclamation(s) or Special Presentation(s) A. Poetry Month Proclamation B. Volunteer Appreciation Month Proclamation C. Washington State Opportunity Zone 2.0 Program D. YMCA Annual Report Presentation E. Website Pre Launch Demo Presentation 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. Executive Session — Pursuant to RCW 42.30.110(1)(i)) Discussion with legal counsel about current or potential litigations (Approximately 30 minutes) VIIL Consent Agenda Action: Move to 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: January 20, 2026, February 2, 2026, February 9, 2026 C. Appointments/Reappointments: Civil Service Commission D. Council Committee Assignment: Housing Fund Board E. 4th Quarter Financial Reports F. Resolution 26-005 Authorizing the City Manager to Negotiate and Execute Agreements for Services IX. Old Business (None) X. New Business A. Decision on Comprehensive Plan Appeal Settlement Offer Proposed Action: i. Public Comment ii. Council deliberation and action B. Authorizing the City Manager to apply for a Library Capital Improvement Program Grant for 2027-2029 for the historic Pink House exterior restoration/improvements at the Port Townsend Public Library. Proposed Action: Move to authorize the City Manager to apply for a Library Capital Improvement Program Grant for 202 7-2029for the historic Pink House exterior restoration/improvements at the Port Townsend Public Library i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action C. Bid Award for the Chetzemoka Kitchen Shelter Rebuild Proposed Action: Move to accept the bid from Anderson Homes for the Chetzemoka Picnic Shelter Rebuild in the amount of $128, 312.00 i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action D. Bid Award for the Discovery Road Bicycle and Pedestrian Safety Improvements Project HSIP-7627(002) Proposed Action: Move to award the construction contract for the Discovery Road Bicycle and Pedestrian Safety Improvements Project to the lowest responsive bidder, Flowline LLP, and to authorize the City Manager to sign all necessary documents and contracts to complete the project. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action XI. Presiding Officer's Report XII. Suggestions for Future Agendas XIII. Comments from Council XIV. Executive Session — Pursuant to RCW 42.30.110 (1)(g) Performance of a public employee (Approximately 45 minutes) XV. Adjourn Y �J�K44� Y�Mh 0� 1F T)^ rit tix�d� Townsein PROCLAMATION WHEREAS, Poetry is the practice of intentional and heart -felt language; and; WHEREAS, intention and heart are central to our ongoing work as elected officials, residents, and neighbors; and; WHEREAS, poetry helps foster a vital language; and; WHEREAS, a vital language is needed not only to make art but to navigate conflict; and; WHEREAS, there will, of course, be a few conflicts to come; and; WHEREAS, intentional and heart -felt language invites depth & clarity, nuance & grace into our every conversation; civic or otherwise; NOW, THEREFORE, I, Amy Howard, Mayor of Port Townsend, Washington do hereby proclaim April 1 through April 30, 2026 as Poetry Month I call upon all public officials, educators, librarians, businesses, residents, and visitors of Port Townsend, Washington to honor this month through participation in the celebratory programs, events, and activities offered for such purpose within our community and to acknowledge poetry as an artistic foundation to build upon in perpetuity to sustain the greatness of our nation. Amy Howard, Mayor CityOf rt ,, uiNNpi� Townse�n PROCLAMATION WHEREAS, the City of Port Townsend joins other cities and organizations across our state and nation to honor community volunteers during National Volunteer Week and National Volunteer Month; and WHEREAS, we celebrate and pay tribute to the efforts that volunteers put forth each and every day as they make a difference in our neighborhoods, schools, not -for - profit organizations, community and civic groups, and government agencies; and WHEREAS, the Mayo Clinic reports that volunteering improves health and leads to lower rates of depression and anxiety; and WHEREAS, volunteers create positive changes in our community by bringing their compassion, time, ideas, talents, technical skills, and professional expertise to strengthen and help our city thrive; and WHEREAS, the City recognizes the support of and dedication of library, parks, trails, police, and advisory body volunteers to the City of Port Townsend; and WHEREAS, the City of Port Townsend honors the hard work and selfless dedication of the numerous volunteers who make the City of Port Townsend a vibrant and integral cornerstone of the community. WHEREAS, by recognizing those who serve, we turn outward and celebrate their collective accomplishments and unwavering efforts and also encourage others to be inspired by their examples to consider volunteerism. NOW, THEREFORE, I, Amy Howard, Mayor of the City of Port Townsend, do hereby proclaim the month of April 2026 as City Volunteer Appreciation Month in the City of Port Townsend. On behalf of the City, I thank all our dedicated volunteers for the City. Amy Howard, Mayor (Iro City0f Port�o� i� �,� 'lownsen Submitted By: Renata Munfrada/Emma Bolin Department: Planning & Community Development Agenda Bill: AB26-032 Meeting Date: April 6, 2026 Agenda Item: Special Presentation ❑x Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: 04/01/2026 Contact Phone: (360) 385-3000 SUBJECT: Washington State Opportunity Zone 2.0 Program CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: $0 ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑ ❑ Contract Approval ❑x Other: Discussion Item Cost Allocation Fund: N/A ❑ Public Hearing (Legislative, unless otherwise noted) ❑x 3-Year Strategic Plan: Objective 2: Economic Growth — Develop diverse businesses opportunities that strengthen the local economy and pave the way for young families to thrive. SUMMARY STATEMENT Opportunity Zone 2.0 (OZ 2.0) is an updated federal economic development program designed to encourage long-term private investment in economically distressed communities. The revised program begins in 2027 and places greater emphasis on rural areas, with stricter eligibility requirements and enhanced incentives intended to improve feasibility in smaller markets. Under federal law, states may designate OZs only once every ten years, using a limited number of eligible census tracts. Recent changes significantly narrow eligibility, meaning fewer areas across Washington State will qualify. At the same time, the program requires that at least 25% of all new Opportunity Zones be located in rural communities with populations under 50,000. OZ 2.0 includes enhanced incentives intended to encourage patient, long-term investment in rural communities. For qualifying rural projects, investors may receive a 30% reduction in taxable capital gains after meeting the required holding period. This incentive is intended to help offset higher construction costs and financing challenges that are common in smaller and rural markets. Eligible investments may include business expansion, commercial or mixed -use development, and the rehabilitation or redevelopment of underutilized properties. By encouraging longer investment timelines, the program supports projects that emphasize economic stability and community benefit, including workforce housing, adaptive reuse, and mixed -use development. I r'ag OZ investment may be used alongside existing affordable housing programs, most notably the LIHTC Program. While LIHTC remains the primary source of equity for affordable housing, development costs often exceed what tax credits alone can support. In this context, OZ investment can help fill financing gaps and improve project feasibility without weakening affordability requirements. The Emerald Coast Opportunity Zone is a regional initiative serving the North Olympic Peninsula, led by EDC Team Jefferson in partnership with counties, cities, ports, and Tribal Nations. The objective is to secure OZ 2.0 designation and position the region to attract sustained private investment that supports local businesses, workforce housing, and coordinated regional growth. Washington State is accepting applications from April 1 through May 1, 2026. ATTACHMENTS: OZ 2.0 Port Townsend Workshop Presentation STAFF RECOMMENDATION: Motion to authorize a letter of support for the proposed Emerald Coast Opportunity Zone's proposed designation, recognizing the program's potential to support local economic development, workforce housing, and rural investment under Washington's OZ 2.0 program. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Remove from Consent Agenda approve Ordinance ❑ Other: Special Presentation ❑ Refer to Staff ❑ Postpone Action ❑ Waive Council Rules and 2 1 rug; J O N IO r -I I, 00 O LO M M M N O l0 �t r-i LO n I, M M l0 00 IO N I, M r-i M N �t . -I 00 O 00 l0 LO L I, I, M r, LO � I, r-I l0 N i -I Ol N N c-I Ol N r, 00 r, N l0 00 0 N 41 N L O *k G E 0) M Ol 0) m l0 Ol LO N I� Ol l0 l0 qt IO M n M 00 l0 IO 00 LO O M LO IO N n M c I qt IO l0 N N N N 00 In qt � M M LO m qt N 00 N 00 In M O N O l0 r, M fC 00 00 M 00 IO 00 l0 IO l0 LO 00 a J N 0) Q I— O n l0 M Ol I, M Ol r-I I, 00 M M r, N l0 Ol N l0 r1 M N Ol N l0 I, N O 00 M M M M 00 00 M ~ t O 3 O -a tA L N 0 tA O N O N M N -I N M c-I lO c-I l0 c-I lO c-I LO c-I M c-I lO c-I 00 c-I R Q � a � i N L Q I" m LO L LO M M N 00 l0 I� 00 I� M c'M l.f) N r I 00 I� O � c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I N Ln C) Ln C) Ln N N C? C? C? C? C? C? C? C? C? In C? In C? 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Deputy Mayor Rowe called the meeting to order at 6:00pm. ROLL CALL Councilmembers present at roll call were Monica MickHager, Neil Nelson, Fred Obee, David Faber, and Owen Rowe with Amy Howard, and Libby Wennstrom excused. Staff members present were City Manager John Mauro , City Attorney Austin Watkins , Chief of Police Tom Olson , Public Works Director Steve King, Deputy Chief Kamal Sharif, Community Services Director Melody Sky Weaver, Parks and Facilities Manager Michael Todd, and Deputy City Clerk Lonnie Mickle. CHANGES TO THE AGENDA There were no changes to the agenda. PROCLAMATION(S) OR SPECIAL PRESENTATION(S) Police Department Strategic Plan Deputy Mayor Rowe stated he would like to have a public comment period after the presentation. Chief of Police Tom Olson and Deputy Chief Kamal Sharif presented the Port Townsend Police Department Strategic Plan 2025-2027 which included Overview, Purpose of the Strategic Plan, Department Mission, Department Vision, Core Values, Message from the Chief, Department Overview, Organizational Structure, Crime & Service Trends (2021-2024), Office of the Chief -Priorities, Operations Division - Priorities, Investigations Division- Priorities, Administrative Services- Priorities, Strategic Goal #1: WASPC Accreditation, Strategic Goal#2: Community Engagement, Community Engagement- Schools & Safety, Strategic Goal #3: Operations, Strategic Goal #4: Employee Opportunities, Specialized Capabilities, Community Partnerships, Strategic Plan Summary, and Looking Ahead. In response to Council's clarifying questions staff explained regional collaboration regarding ICE, trends, and speed enforcement policy. Public Comment (Added During Changes to the Agenda) January 20, 2026 City Council Business Meeting Page 1 of 4 Angela Michelle spoke about domestic violence response protocol. DRAFT In response to public comment staff explained domestic violence response protocol. Discussion ensued around looking forward to the next presentation and response to federal agencies. CITY MANAGER'S REPORT City Manager John Mauro provided the City Manager's Report which included transportation, Kah Tai restroom ribbon cutting, Fort Worden reservations, Solid Waste Taskforce public meeting, recycling conversation, Coffee Conversation, and AWC student scholarship. COMMENTS FROM THE PUBLIC Public comment There was no public comment. Staff or Council response, as needed CONSENT AGENDA Approval of Bills, Claims and Warrants Approval of Minutes: ICG- November 21, 2024, December 4, 2025, December 11, 2025. Council- November 24, 2025 Appointments/Reappointments: Lodging Tax Advisory Committee, Parks, Recreation, Trees and Trails Advisory Board, Arts Commission Resolution 26-001 Amending City Council Rules of Procedure Motion: David Faber moved to approve the consent agenda. Fred Obee seconded. Vote: motion carried unanimously, 5-0 by voice vote. OLD BUSINESS (NONE) NEW BUSINESS Accepting Donation for Dog Park at Mountain View Commons January 20, 2026 City Council Business Meeting Page 2 of 4 Community Services Director Melody Sky Weaver, Facilities and Parks Manages AFT Michael Todd, and Debbie Jahnke presented on Accepting Donation for Dog Park at Mountain View Commons which included generous community support, ribbon cutting, Mountain View Park being well used, dedicated Parks team, Dog Park volunteers, need for shelter from elements, Jim Todd legacy and donations, Debbie speaking as individual not on behalf of Parks, Recreation, Trees and Trails Advisory Board, dog park history, properly engineered sheltered, and visits per year. Public comment: Dena Odell spoke about being a dog park liaison, visits per year have grown, encourage Council to accept donation, and appreciation for donors. Discussion ensued around donation policy. Council member Faber stated he is the Attorney of Record for the Estate of James Stewart Todd but there are no financials entangled in transaction, his office/personally receive no benefit and it does not affect vote in anyway. Council member MickHager stated she is the Executor of Estate, but the money is not coming from the estate, the money is from community members who received gifts from estate. Motion: Fred Obee moved to accept donation for a dog park shelter at Mountain View Commons Dog Park David Faber seconded. Vote: motion carried unanimously, 5-0 by voice vote. PRESIDING OFFICER'S REPORT Deputy Mayor Rowe provided the Presiding Officer's Report which included request for Elected Officials to sign Ferry Support Letter. Discussion ensued around signing the letter allows City to advocate for topic, approve investing in ferry system, sign on your own but need to know if a majority signs. Public comment (Added during meeting) There was no public comment. Discussion ensued around budget concerns, supportive of message, Council member Faber will support, Council member MickHager will support, and investment made in Washington State. Deputy Mayor Rowe asked if the Council intended to sign the letter. A majority of Council indicated they would. January 20, 2026 City Council Business Meeting Page 3 of 4 Deputy Mayor Rowe continued his Presiding Officer's Report which included AWC OffT Action Days and upcoming Point in Time Count. SUGGESTIONS FOR FUTURE AGENDAS There were no suggestions for future agendas. COMMENTS FROM COUNCIL There were no comments from Council. ADJOURN There being no further business, the meeting adjourned at 7:15pm. Attest: Alyssa Rodrigues City Clerk January 20, 2026 City Council Business Meeting Page 4 of 4 CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL BUSINESS MEETING OF FEBRUARY 2, 2026 CALL TO ORDER City Council met in a regular session on the 2nd day of February 2026 in Council Chambers at 540 Water St, Port Townsend, WA 98368. Mayor Howard called the meeting to order at 6:OOpm. ROLL CALL Councilmembers present at roll call were David Faber, Amy Howard, Owen Rowe, Libby Wennstrom, Neil Nelson, and Fred Obee with Monica MickHager excused. Staff members present were City Attorney Austin Watkins, City Manager John Mauro, Planning and Community Development Director Emma Bolin , Public Works Director Steve King , Finance and Technology Services Director Jodi Adams, Community Services Director Melody Sky Weaver, Accountant Isaac Johnson , and City Clerk Alyssa Rodrigues. CHANGES TO THE AGENDA There were no changes to the agenda. PROCLAMATION(S) OR SPECIAL PRESENTATION(S) Climate Action Committee Briefing- Implementation of Comprehensive Plan and Climate Element as Theme Climate Action Committee Chair Cindy Jayne and Vice Chair Jefferson County Board of County Commissioner Heather Dudley-Nollette provided the Jefferson County/City of Port Townsend Climate Action Committee 2025 Update, Plans for 2026 presentation which included Review of History of the Climate Action Committee, Updated Goals, Vehicle Miles Traveled (VMT) Work Group- Accomplishments, Vehicle Miles Traveled Work Group- Future Opportunities, EV Work Group- Accomplishments, EV Work Group- Accomplishments and Future, Jefferson County Forests and Trees Greenhouse Gas Inventory for 2001-2016 and Next Steps, New Carbon Sequestration Goals, Forest Working Group- Accomplishments, Forest Working Group- Opportunities for County and City, Other Working Groups, Food Systems Work Group, Working Group Model to Move Forward Comp Plan Climate Elements, and Organizational Climate Activities. In response to Council's clarifying questions CAC members explained measuring metrics and comfort with goals. CITY MANAGER'S REPORT City Manager John Mauro provided the City Manager's Report which included new staff/promotions, Discovery Rd, Walker/Washington sidewalk, Cook Ave drainage, Lawrence St grant, outfall project grant, Clay and Gaines St water from maintenance hole, Skatepark lights, funding for Sather and Bishop Park, Kah Tai restroom opening, RCO grants, and Coffee with the City Manager. COMMENTS FROM THE PUBLIC Public comment Ruth Gordon spoke about encouraging consideration of Resolution 17-014 suggested updates/edits. John Watts spoke about copy of letter submitted to City on January 12 re: Clarification on Key Issues Associated with R-II Zoning District Changes (Maximum and Minimum Density, Building Height, Street LOS F), responses to letter from City Council and staff, and the need for answers. Kellen Lynch spoke about energy consulting, Climate Commitment Act, Department of Commerce funding, resiliency grants, inviting Jeff Randall Port Townsend Commissioner from PUD, and contract terms with power company. Staff or Council response, as needed In response to public comment staff and Council explained appreciating resources from community, PUD responsibility, funding sources, response time, changes in Comprehensive Plan and explaining to public, no issues interpreting the code, connecting the dots on request, permit videos, applying for code interpretation, Development Code not Comprehensive Plan, and Welcoming City resolution will be coming forward to Council soon. EXECUTIVE SESSION: PURSUANT TO RCW 42.30.110(1)(1)) DISCUSSION WITH LEGAL COUNSEL ABOUT CURRENT OR POTENTIAL LITIGATIONS (APPROXIMATELY 20 MINUTES) Mayor Howard stated the Council will go into Executive Session pursuant to RCW 42.30.110(1)(i)) Discussion with legal counsel about current or potential litigation for approximately 20 minutes. No action to follow. Council went into Executive Session at 6:43pm. Council came out of Executive Session at 7:03pm. No action was taken. CONSENT AGENDA Approval of Bills, Claims and Warrants (None) Approval of Minutes: December 8, 2025 Appointments/Reappointments: Equity, Access, and Rights Advisory Board Authorizing for the City Manager to Sign a Task Order Under the Existing Interlocal Agreement (ILA) Between the City and the County to Perform Chip Seal on City Streets and Purchase Materials from County?s Supplier Change Order Authorization: Increase Contract Value for the Mill Road and Discovery Road Improvements Due to Unforeseen Subgrade Conditions and Improve Drainage Arts and Culture Coordinator Reclassification Motion: David Faber moved to approve the consent agenda. Fred Obee seconded. Vote: motion carried unanimously, 6-0 by voice vote. OLD BUSINESS (NONE) NEW BUSINESS Authorization to Apply for Landmark Tree Designation at the Golf Park Public Works Director Steve King, Community Services Director Melody Sky Weaver, Marketing and Communications Director Shelly Leavens, and City Manager John Mauro provided the Authorization to Apply for Landmark Tree Designation at the Golf Park presentation which included roles, Landmark Tree program process, City is property owner, two applications made, City initiated Tribal consultation, Chemakum Tribe, importance of Tribal consultation, concurrence from Tribes, City moving forward, Golf Park entrance, State designation, consider all factors in process, staff recommends to authorize application, report to Parks, Recreation, Trees and Trails Advisory Board, Public Works Director makes decision per City code, Golf Park managed through lease, important to understand history of tree, and appreciation for patience. Public comment: Naomi Kranky spoke about the Landmark tree, relation to the Butler family, importance of history, and plaque. Rosalee Walz spoke about the Landmark tree, Chemakum history, and appreciation for full consideration. Jo Blair spoke about the Landmark tree, Native Connections Action Group, appreciation for consultation, Council approving, preserving cultural and historical landmarks, Camas Prairie, and Sentinel Rock. Discussion ensued around consultation history of Landmark tree, timeline, importance of consultation, mistake to cover up history, continuing consultation, and not approving designation tonight just process. Motion: David Faber moved to authorize the application for consideration of designation of a landmark tree located on land owned by the City at the Port Townsend Golf Park. Owen Rowe seconded. Vote: motion carried unanimously, 6-0 by voice vote. Ordinance 3363 Adopting New Port Townsend Municipal Code (PTMC) Sections 3.04.440, 3.04.445, 3.04.450, and 3.04.455 Relating to Separate Water and Sewer Operating and Capital Funds Finance and Technology Services Director Jodi Adams, Accountant Isaac Johnson, and Steve King provided the Water Sewer Fund Split presentation which included Agenda, Water Sewer Setup and Context, Inside the Water Sewer Fund, Benefits of Splitting the Funds, Water/Sewer Fund Separation Before and After, and Why Now? And Next Steps. In response to Council's clarifying questions staff explained customer impact, simplifying rate studies, and appropriate funds. Public comment: There was no public comment. Motion: Neil Nelson moved to waive Council Rules and adopt Ordinance 3363 Adopting New Port Townsend Municipal Code (PTMC) Sections 3.04.440, 3.04.445, 3.04.450, and 3.04.455 Relating to Separate Water and Sewer Operating and Capital Funds Owen Rowe seconded. Vote: motion carried unanimously, 6-0 by voice vote. PRESIDING OFFICER'S REPORT Council Committee Assignments Mayor Howard provided the Presiding Officer's Report which included Kah Tai Restroom Ribbon Cutting, higher elected meetings, Council Committee assignments, and Production Alliance letter. Discussion ensued around Council Committee Assignments which included Council member MickHager agreeing to be Council Liaison to Historic Preservation Committee. Motion: David Faber moved to approve the Council Committee and Outside Committee positions with changes as presented. Fred Obee seconded. Council member Faber stated he will be unable to attend the upcoming Library Advisory Board meeting. Vote: motion carried unanimously, 6-0 by voice vote. City Manager John Mauro presented the Production Alliance Funding Request letter which included Connectivity Summit, funding request, request for Mayor Howard to provide a presentation, youth engagement sessions, agenda, and ways to support funding request. Discussion ensued around Council discretionary fund balance, great collaboration with County, unique event, in favor, and Mayor Howard's presentation regarding effective public comment. Motion: Owen Rowe moved to support the Production Alliance Connectivity Summit in the amount of $5,000 drawing from the Council Discretionary Fund. David Faber seconded. Vote: motion carried unanimously, 6-0 by voice vote. SUGGESTIONS FOR FUTURE AGENDAS Council member Obee reported the Quimper Growers Group asked for a waiver of fees for the Comprehensive Plan amendment and believes it needs to come to Council for approval. Discussion ensued around it being an administrative process, staff received information today and will review, if they approach a Council member it can be proposed on docket, proper way to proceed, application has been submitted, staff needs to review and it will come in front of Council if needed. COMMENTS FROM COUNCIL There were no comments from Council. EXECUTIVE SESSION: PURSUANT TO RCW 42.30.110 (1)(G) PERFORMANCE OF A PUBLIC EMPLOYEE (APPROXIMATELY 30 MINUTES) Mayor Howard stated the Council will go into Executive Session pursuant to RCW 42.30.110 (1)(g) Performance of a public employee for approximately 30 minutes. No action to follow. Council went into Executive Session at 7:45pm. Council came out of Executive Session at 8:14pm. No action was taken. ADJOURN There being no further business, the meeting adjourned at 8:14pm. Attest: Alyssa Rodrigues City Clerk DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL WORKSHOP MEETING OF FEBRUARY 9, 2026 CALL TO ORDER/ ROLL CALL City Council met in a regular session on the 9th day of February 2026 in Council Chambers at 540 Water Street, Port Townsend, WA 98368. Mayor Howard called the meeting to order at 6:00pm. Councilmembers present at roll call were David Faber, Amy Howard, Monica MickHager, Neil Nelson, Fred Obee, Owen Rowe, and Libby Wennstrom. Staff members present were Public Works Director Steve King , Finance and Technology Services Director Jodi Adams, Planning and Community Development Director Emma Bolin, and City Clerk Alyssa Rodrigues. GENERAL PUBLIC COMMENT (REGARDING ITEMS NOT ON THE AGENDA Public Comment Staff or Council response, as needed There was no public comment. DISCUSSION ITEMS Water Utility Rates Update Work Plan Preview Public Works Director Steve King and Finance and Technology Services Director Jodi Adams provided the Water Rates Update Overview which included Presentation Objective, Background- Enterprise Fund, Background-2019 Water System Plan, Background -Olympic Gravity Water System, Background Water Supply Agreement 2021, Background OGWS and Water Funds, City of Port Townsend OGWS Fund Budget Summary, Background Water Rate Ordinances, Background 2024 Sewer and Storm Rate Ordinance, Background 2024 Income Based Discount, Rate Modeling, Raw Water Rate Model Work Plan, Potable Water Rate Model Work Plan, and Next Steps Re -cap. In response to Council's clarifying questions staff explained operation and maintenance costs, agricultural water, separating agriculture water use from wastewater utility, drilling a new well for irrigation, participants in income -based discount program, social media push, application in alternative languages, rainwater/grey water systems, cost of potential failures, investment income revenues, and increasing Lords Lake costs. April 2, 2026 City Council Workshop Meeting Page 1 of 4 Public comment: There was no public comment. DRAFT Discussion ensued around appreciation for attention to income -based discount program. Recycling Collections Options Discussion Olympic Disposal District Manager Joey Deese and Steve King provided the Recycling Collections Contract Options which included Presentation Objective, Background- January 12, 2026: City Solid Waste Management: Three -Legged Stool, Background- January 12, 2026: Recalling Organizational Responsibilities, Background- January 12, 2026: Recycling subsidy, Background: Recycling, Background- January 12, 2026: Recycling Markets, Background -January 12, 2026: Changes approved by BOCC, Background- January 12, 2026: Changed Recycling Program in Jefferson Co. Single Stream- Effective April 1, 2026, Background - January 12, 2026: Recycling Program Update Impacts to City Customers, City Collection Services Options, Option 1- Keep Source Separated, Option 2- Single Stream Collection, and Staff Recommendation for Discussion. In response to Council's clarifying question staff and Joey Deese explained increase in bill, downtime with specialized trucks, life source match contract, don't have to sort now but must separate glass, option 1 contract, spillage from wind/animals, possibility of increase with option 2, amount of times recycling comes, rates/size per bin, cardboard next to bin, how to ask for smaller can, 96 gallon bin space, size of yard waste bin, residential family size in Sequim, price difference between 64 and 96 gallons, glass truck, repurpose trucks as part of option 2, 220 lbs. of recycling/garbage to transfer station, and fees the same between Option 1 and 2. Discussion ensued around single stream being very normal and garbage and income -based discounts. Public comment: There was no public comment. Discussion ensued around residences inside city limits of Port Townsend, glass stability, glass bins, preference for option 2, concerns about buying a new truck, hazardous waste, and vehicle miles traveled. Economic Development and Review of Glen Cove Utility Extensions Analysis Steve King and Planning and Community Development Director Emma Bolin provided the Part1: Economic Development Part 2: Glen Cover Infrastructure Analysis Report which included Presentation Objective: Provoking Discussion, Part April 2, 2026 City Council Workshop Meeting Page 2 of 4 1: Economic Development Context, Part 1: Economic Development Context- FaT Reality, Part 1: Economic Development Context Why?, Part 1: Economic Development Looking Back at History, Part 1: Economic Development Present- Part of a World Economy, Part 1: Economic Development Jobs by Sector, Part 1: Economic Development Present- Projected Employment Growth, Part 1: Economic Development Present- Loss of Jobs in PT, Part 1: Economic Development Present - Jobs to Household Ratio, Part 1: Economic Development Present- Household Income Distribution, Part 1: Economic Development Present- Renter/Ownership income distribution, Part 1: Economic Development Present- Hourly wage by sector, Part 1: Economic Development Present- Housing, Part 1: Economic Development Present- Commercial Property and Space, Part 1: Economic Development Present - Strip Development Pattern, Part 1: Economic Development Present- Leakage, Pat 1: Economic Development Future, Part 1: Economic Development Future - Comprehensive Plan, Part 1: Economic Development Dollars and Cents (sense), Part 1: Economic Development Who does it?, Part 1: Economic Development What about the City?, and Part 1: Economic Development Discussion. Public comment: Pheobe Reid spoke about being Economic Development Council support, appreciation for ICG work, EDC strategic plan, culture of yes, ready to collaborate on Glen Cove, and EDC being a lead partner. Discussion ensued around construction jobs, what makes sustainability, technical education, "Works in Progress- the housing theory of everything" article, walkable community, and upcoming ICG meeting. Steve King and Emma Bolin continued the presentation which included Part 2: Glen Cove Light Industrial Area, Part 2: Glen Cove Light Industrial Area Why?, Part 2: Glen Cove Light Industrial Area Refinement of Study Focus, Part 2: Glen Cove Light Industrial Area Preferred Alternative, Part 2: Glen Cove Light Industrial Area Current LAMIRD, Part 2: Glen Cove Light Industrial Area Vision, Part 2: Glen Cove Light Industrial Area Vision -Concerns and Opportunities, Part 2: Glen Cove Light Industrial Area City Infrastructure - Water/Sewer, Part 2: Glen Cove Light Industrial Area City Sewer, Part 2: Glen Cove Light Industrial Area 2024 General Sewer Plan, Part 2: Glen Cove Light Industrial Area Special Study Area, Part 2: Glen Cove Light Industrial Area Mill Rd. LS Budget, and Discussion. Public comment: There was no public comment. Discussion ensued around growing existing businesses, pricing, resistance to annexation, pro formas, natural flow, expanded user base fund infrastructure that already exists, water supply plan and capacity, control of mix of businesses, retail commercial, and value for City. ADJOURN April 2, 2026 City Council Workshop Meeting Page 3 of 4 DRAFT There being no further business, the meeting adjourned at 8:32pm. Attest: Alyssa Rodrigues City Clerk April 2, 2026 City Council Workshop Meeting Page 4 of 4 City0f Port ' m�10 Townsen Submitted By: Mayor Howard Department: Mayor Agenda Bill 26-033 Meeting Date: April 6, 2026 Agenda Item: Consent Vill. C ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: April 2, 2026 Contact Phone: 379-2980 SUBJECT: • Appointment of David Ehnebuske (Position 2, Term Expires December 31, 2027) to Civil Service Commission CATEGORY: BUDGET IMPACT: n/a ❑x 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: • Appointment of David Ehnebuske (Position 2, Term Expires December 31, 2027) to Civil Service 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 ❑x Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑x Other: 6ufi� l Liaison:„1�11snrc,M�ckl lager ............ Meets Bi-monthly 4:30pm 4th Tuesday at City Hall Pos. Name & Experience Exp. 1 Matt Miner 5/1/28 2 VACANT 5/1/26 3 Richard Hefley 5/1/27 4 Pamela Adams 5/1/28 5 Rebecca Kimball 5/1/28 6 VACANT ! 5/1/27 7 Deborah Jahnke, Chair 5/1/27 8 Nicole Karn 5/1/28 9 Jeffrey Taylor 5/1/28 arfcil 1,14196n. "1 l6i Meets 3:OOpm quarterly 2nd Tuesday at City Hall Pos. Name & Role Exp. 1 Owen Rowe, Chair (Elected Official) N/A 2 Sarah Copley (At Large Position) 5/1/26 3 Cindy Finnie (At Large Position) 5/1/28 4 VACANT (Recipient) 5/1/25 5 VACANT (Recipient) 5/1/27 6 Danielle McClelland (Recipient) 5/1/28 7 Denise Winter (Recipient) 5/1/28 8 VACANT (Collector) 5/1/22 9 Kate Philbrick (Collector) 5/1/28 '10 VACANT (Collector) 5/1/26 11 VACANT (Collector) 5/1/24 12 Main Street Designee (Nonvoting) 5/1/27 13 Jefferson Transit Authority Kelly Olson (Nonvoting) 5/1/26 14 VACANT(Nonvoting) 5/1/20 6urfcl .................... TBD Pos. Name Exp. 1 Catharine Robinson N/A 2 Earll Murman N/A 3 John Nowak N/A 4 Richard Jahnke N/A 5 VACANT N/A 6 VACANT N/A 7 VACANT N/A 8 VACANT N/A f6ufic�l L ii$oti ;"Mor[Ic MlckHag, Meets 3:OOpm 1 st Tuesday at City Hall Pos. Name Exp. 1 Kathleen Knoblock 5/1/26 2 Michael D'Alessandro 5/1/26 3 Monica Mader 5/1/26 4 Walt Galitzki 5/1/27 5 Zhenya Lavy 5/1/28 6 Craig Britton, Chair 5/1/28 7 VACANT 5/1 /25 /RT011mII� fQ ...... tf60f cll L,' 9 fr s ' Meets 3:OOpm 1st Wednesday at City Hall Pos. Name Exp. 1 Simon Lynge 5/1/26 2 Alexis Arrabito 5/1/26 3 Melanie Muszynski 5/1/26 4 Heidi Tullman 5/1/27 5 Joshua Saunders 5/1/28 6 Sheena Uritz 5/1/28 7 Chrstine WalshRogers 5/1/27 8 Dan Groussman 5/1/28 9 Doug Caskey 5/1/27 LILY At)1 y- Q;�`=(� 7� Meets Bi-monthly 1:OOpm 2nd Tuesday at the LLC os. Wame xp. 1 Pamela Adams 5/1/28 2 Kathleen Hawn 5/1/27 3 Susan Ferentinos 5/1/27 4 Diane Walker 5/1/26 5 Alyssa Fuehrer 5/1/26 6 Diana Grunow 5/1/26 7 David Tolmie 5/1/28 6 bil lirTeE,(�), ,,,,,, ,,, Meets 3:30pm 2nd Tuesday at the Gael Stuart Building Name City Council (Chair) Joanna Sanders, City Clerk Melody Eisler, Library Director John Polm, School District Superintendent , School District Video Instructor Richard Durr, School District Representative VACANT,, Video Professional Citizen Representative VACANT, Student Represe t tiue VACANT Producers Grbup Representative (O7 tional) VACANT Education Group Representative (Optional) M I T( f 11 ITT ( ).. Meets bi-monthly 3:00 p.m. on 2nd Tuesday Pos. Name Exp. 1 Jefferson County BoCC (Heather Dudley-Nollette) N/A 2 City Council (Owen Rowe) N/A 3 1 JeffPUD (Jeff Randall) N/A 4 Jefferson County Public Health (Laura Tucker) N/A 5 Jefferson Healthcare (Kees Kolff) N/A 6 Jeff. Transit (Nicole Gauthier/Amy Hall) N/A 7 Port of PT ( Carol Hasse/Eric Toews) N/A 8 PT Paper Corp. (Michael Clea) N/A 9 Cindy Jayne - Chair 12/31/26 10 Crystie Kisler - At Large 12/31/28 11 David Wilkinson -At Large 12/31/28 12 Jaime Duyck-At Large 12/31/27 13 Krista Meyers - At Large 12/31/27 14 Kate Chadwick (Policy)- At Large 12/31/26 15 Dave Seabrook -At Large 12/31/27 ,,,ICE �IS1�I�FIT��W(S�l(BQI Cburicil L;aisort �Cmy;��uard Meets 2nd Thursday at 12:30 at Council Chambers Pos. Name Exp. 1 VACANT ! 5/1/25 2 Gabrielle Vanwert 5/1/26 3 Julia Cochrane 5/1/27 4 Amber Kent 5/1/28 5 Aimee Krouskop 5/1/26 6 Rachael Nutting 5/1/27 7 VACANT ; 5/1/25 8 Devin Gonzalez 5/1/26 9 Francisca Ramirez Aquino 5/1/27 Meets 6:30pm 2nd & 4th Thursday at City Hall Pos. Name Exp. 1 Samantha Bair Jones, Chair 12/31/27 2 Stephen Mader 12/31/26 3 Rick Jahnke 12/31/27 4 Viki Sonntag 12/31/26 5 Corrina Coorrsen 12/31/28 6 Dylan Quarles 12/31/28 7 Andreas Andreadis 12/31/27 Cfd, -11, "IIISSI) Meets as needed Pos. Name Exp. 1 Darryl Elmore 12/31/25 2 VACANT 12/31/27 3 Richard Sussman 12/31/27 F`bgT 1% Pik I Council Liaison: Libby Wennstrom Meets at Fort Worden Commons B Pos. Name Exp. 1 Brad Mace 10/24/25 2 Tracy Garrett 10/24/25 3 David King 10/24/26 4 VACANT 10/24/26 5 John Begley 10/24/24 6 Steve Dowdell 10/24/24 7 VACANT 10/24/24 8 VACANT 10/24/22 9 10/24/25 10 10/24/25 11 1 10/24/25 City0f Port ' m�10 Townsen Submitted By: Amy Howard Department: Mayor SUBJECT: Council Committee Assignments CATEGORY: ❑ Consent ❑ Resolution ❑ Staff Report ❑ Ordinance ❑ Contract Approval ❑x Other: Discussion Item Agenda Bill AB26-039 Meeting Date: April 6, 2026 Agenda Item: Consent VIII.D ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: April 2, 2026 Contact Phone: 360-379-2980 BUDGET IMPACT: Expenditure Amount: $ ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: 010-011 GF - Mayor & Council Included in Budget? Yes ❑ No ❑ SUMMARY STATEMENT: This matter is before Council for discussion of the process of assigning: • Council member David Faber to the Housing Fund Board ATTACHMENTS: 1. Council Committee Assignments 2. Citizen Advisory Boards, Commissions, Task Forces, Committees & Subcommittees Current Rosters CITY COUNCIL COMMITTEE RECOMMENDATION: None RECOMMENDED ACTION: If adopted as part of the Consent Agenda, no further action is needed; this effectively represents unanimous approval of appointing Council member David Faber to the Housing Fund Board ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: COUNCIL COMMITTEE ASSIGNMENTS COUNCIL STANDING COMMITTEES Infrastructure and Development (1st Wed. 3pm Virtual/Chambers) ------ Culture and Society (2nd Wed. at 3pm, Virtual/Chambers) ---------------- Finance and Budget (3,d Mon. 3pm / Virtual/Chambers)-------------------- Intergovernmental Collaborative Group (Quarerly/Virtual/Port Building) participate CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee Lodging Tax Advisory Committee (LTAC) --- ---- DF, MM, NN ---- AH, OR, LW ----OR, FO, MM ----All members Unassigned ----------- 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 (FO alt) Housing Housing Fund Board----------------------------------------------------------------------------------- AEI-DF, NN Infrastructure Public Infrastructure Board--------------------------------------------------------------------------------------DF Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee Transportation Jefferson Transit Authority Board------------------------------------------------------------------------ FO, DF Peninsula Regional Transportation Planning Organization Executive Board----------- FO (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------------------------------------------------------------------------------------- LW Joint Growth Management Steering Committee----------------------------------------------------- DF, FO Jefferson County FEMA funds (Dove House Advocacy Services) --------------------- AD HOC APPT Port Townsend Main Street HUD Loan Committee-------------------------------------------------------AH Team Jefferson Economic Development Council (EDC)----------------------------------------------- NN Jefferson County Fairgrounds Board -------------------------------------------------------------------------- OR Port Townsend School District Facilities Committee ------------------------------------------------------ AH Association of Washington Cities Board of Directors (not council appointed) ---------------------- AH Council Liaison to Advisory Bodies Equity Access and Rights ----------------- Parks, Recreation, Trees, and Trails --- Arts Commission ----- Library ------------------- Historic Preservation ----------------------------------------------------------------A H --------------------------------------------------------------- M M ---------------------------------------------------------LW ---------------------------------------------------------- D F ----------------------------------------------------------?? 6ufi� l Liaison:„1�11snrc,M�ckl lager ............ Meets Bi-monthly 4:30pm 4th Tuesday at City Hall Pos. Name & Experience Exp. 1 Matt Miner 5/1/28 2 VACANT 5/1/26 3 Richard Hefley 5/1/27 4 Pamela Adams 5/1/28 5 Rebecca Kimball 5/1/28 6 VACANT ! 5/1/27 7 Deborah Jahnke, Chair 5/1/27 8 Nicole Karn 5/1/28 9 Jeffrey Taylor 5/1/28 arfcil 1,14196n. "1 l6i Meets 3:OOpm quarterly 2nd Tuesday at City Hall Pos. Name & Role Exp. 1 Owen Rowe, Chair (Elected Official) N/A 2 Sarah Copley (At Large Position) 5/1/26 3 Cindy Finnie (At Large Position) 5/1/28 4 VACANT (Recipient) 5/1/25 5 VACANT (Recipient) 5/1/27 6 Danielle McClelland (Recipient) 5/1/28 7 Denise Winter (Recipient) 5/1/28 8 VACANT (Collector) 5/1/22 9 Kate Philbrick (Collector) 5/1/28 '10 VACANT (Collector) 5/1/26 11 VACANT (Collector) 5/1/24 12 Main Street Designee (Nonvoting) 5/1/27 13 Jefferson Transit Authority Kelly Olson (Nonvoting) 5/1/26 14 VACANT(Nonvoting) 5/1/20 6urfcl .................... TBD Pos. Name Exp. 1 Catharine Robinson N/A 2 Earll Murman N/A 3 John Nowak N/A 4 Richard Jahnke N/A 5 VACANT N/A 6 VACANT N/A 7 VACANT N/A 8 VACANT N/A f6ufic�l L ii$oti ;"Mor[Ic MlckHag, Meets 3:OOpm 1 st Tuesday at City Hall Pos. Name Exp. 1 Kathleen Knoblock 5/1/26 2 Michael D'Alessandro 5/1/26 3 Monica Mader 5/1/26 4 Walt Galitzki 5/1/27 5 Zhenya Lavy 5/1/28 6 Craig Britton, Chair 5/1/28 7 VACANT 5/1 /25 /RT011mII� fQ ...... tf60f cll L,' 9 fr s ' Meets 3:OOpm 1st Wednesday at City Hall Pos. Name Exp. 1 Simon Lynge 5/1/26 2 Alexis Arrabito 5/1/26 3 Melanie Muszynski 5/1/26 4 Heidi Tullman 5/1/27 5 Joshua Saunders 5/1/28 6 Sheena Uritz 5/1/28 7 Chrstine WalshRogers 5/1/27 8 Dan Groussman 5/1/28 9 Doug Caskey 5/1/27 LILY At)1 y- Q;�`=(� 7� Meets Bi-monthly 1:OOpm 2nd Tuesday at the LLC os. Wame xp. 1 Pamela Adams 5/1/28 2 Kathleen Hawn 5/1/27 3 Susan Ferentinos 5/1/27 4 Diane Walker 5/1/26 5 Alyssa Fuehrer 5/1/26 6 Diana Grunow 5/1/26 7 David Tolmie 5/1/28 6 bil lirTeE,(�), ,,,,,, ,,, Meets 3:30pm 2nd Tuesday at the Gael Stuart Building Name City Council (Chair) Joanna Sanders, City Clerk Melody Eisler, Library Director John Polm, School District Superintendent , School District Video Instructor Richard Durr, School District Representative VACANT,, Video Professional Citizen Representative VACANT, Student Represe t tiue VACANT Producers Grbup Representative (O7 tional) VACANT Education Group Representative (Optional) M I T( f 11 ITT ( ).. Meets bi-monthly 3:00 p.m. on 2nd Tuesday Pos. Name Exp. 1 Jefferson County BoCC (Heather Dudley-Nollette) N/A 2 City Council (Owen Rowe) N/A 3 1 JeffPUD (Jeff Randall) N/A 4 Jefferson County Public Health (Laura Tucker) N/A 5 Jefferson Healthcare (Kees Kolff) N/A 6 Jeff. Transit (Nicole Gauthier/Amy Hall) N/A 7 Port of PT ( Carol Hasse/Eric Toews) N/A 8 PT Paper Corp. (Michael Clea) N/A 9 Cindy Jayne - Chair 12/31/26 10 Crystie Kisler - At Large 12/31/28 11 David Wilkinson -At Large 12/31/28 12 Jaime Duyck-At Large 12/31/27 13 Krista Meyers - At Large 12/31/27 14 Kate Chadwick (Policy)- At Large 12/31/26 15 Dave Seabrook -At Large 12/31/27 ,,,ICE �IS1�I�FIT��W(S�l(BQI Cburicil L;aisort �Cmy;��uard Meets 2nd Thursday at 12:30 at Council Chambers Pos. Name Exp. 1 VACANT ! 5/1/25 2 Gabrielle Vanwert 5/1/26 3 Julia Cochrane 5/1/27 4 Amber Kent 5/1/28 5 Aimee Krouskop 5/1/26 6 Rachael Nutting 5/1/27 7 VACANT ; 5/1/25 8 Devin Gonzalez 5/1/26 9 Francisca Ramirez Aquino 5/1/27 Meets 6:30pm 2nd & 4th Thursday at City Hall Pos. Name Exp. 1 Samantha Bair Jones, Chair 12/31/27 2 Stephen Mader 12/31/26 3 Rick Jahnke 12/31/27 4 Viki Sonntag 12/31/26 5 Corrina Coorrsen 12/31/28 6 Dylan Quarles 12/31/28 7 Andreas Andreadis 12/31/27 Cfd, -11, "IIISSI) Meets as needed Pos. Name Exp. 1 Darryl Elmore 12/31/25 2 VACANT 12/31/27 3 Richard Sussman 12/31/27 F`bgT 1% Pik I Council Liaison: Libby Wennstrom Meets at Fort Worden Commons B Pos. Name Exp. 1 Brad Mace 10/24/25 2 Tracy Garrett 10/24/25 3 David King 10/24/26 4 VACANT 10/24/26 5 John Begley 10/24/24 6 Steve Dowdell 10/24/24 7 VACANT 10/24/24 8 VACANT 10/24/22 9 10/24/25 10 10/24/25 11 1 10/24/25 City0f Port Townsen Submitted By: Isaac Johnson, Accountant Date Submitted: April 6, 2026 Department: Finance Agenda Bill AB26-034 Meeting Date: April 6, 2026 Agenda Item: Consent VIII.E ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting SUBJECT: 2025 Fourth Quarter Financial Update CATEGORY: ❑x Consent Staff Report Contact Phone: 360-390-4115 BUDGET IMPACT: ❑ Resolution Expenditure Amount: ❑ Ordinance Included in Budget? Yes ❑ No ❑ Contract Approval ❑ Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: 010-041 GF - Finance General SUMMARY STATEMENT: The Fourth Quarter Financial Report for 2025 summarizes the City's financial performance through December 31, 2025. As of year-end, fourth-quarter results provide a complete picture of year-end trends and the City's overall financial position. The General Fund balance has been drawn down in recent years for planned one-time expenditures; however, the Fund's reserve position remains strong at 29% of revenues, well above the City's reserve policy target range of 8% to 15%. At year-end, the balance remained approximately $3.6 million above the 8% minimum reserve threshold (see visual on page 5). Across the City's other funds, year-end results generally reflected expected operating activity. Utility, internal service, and other operating funds largely tracked as anticipated during the year. Capital activity was concentrated primarily in the Water/Sewer and Streets capital funds, where 2025 expenditures totaled about $4.2 million and $2.1 million, respectively. Capital budgets are made to include all projects that could reasonably move forward during the year, even though by year-end, factors such as timing, weather, permitting, and bidding often mean that only a portion of those projects will incur expenditures in that same year. As a result, actual year-end capital spending usually comes in below budget, with 2025 expenditures totaling 32% of the total capital budget. ATTACHMENTS: 1. 2025 Fourth Quarter Financial Report CITY COUNCIL COMMITTEE RECOMMENDATION: The Fourth Quarter Financial Report was reviewed by the Finance and Budget Committee on March 9, 2026 and it was recommended to be moved to consent at Council April 6t", 2026. RECOMMENDED ACTION: No action requested. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: C'I'tyof Por Towns Q4 2025 Financial Report (October -December) FY 2025 Q4 December 31, 2025 G..e..n..e..r.a..l F.u.nd ...... .... ..... .... ... .... . .... ..... ...... ..... ....... .... .... .... ..... .. ... General Fund Fund Balance ................... n,5 ................................................................................................................................................................... Q..e.n.e.r.a.1 F..u.n.d N.o..n..-.=.Tax ...... .... ..... .... ... .... . .... ..... ...... ..... . . ..... .... ..... .... ... . — Sales 'fax .......... 8 .................................................................................. — Pro — Public Utilitv 'Fax .......... 12 ............................................................. . .............................................................. .............. .......................... .................................................................. 13. — R.e..a..l E..s..t.a..t..e E.x.c..i..s..e ...... .... .... . .... ... ... .... .. .... ..... ..... .... . ... .... ...... .... ..... . ... — LQdging'fax .......... — Water Util't Revenue .......... 16 ..................................................... ! — S..e..w..e..r Utilijy ..... ... ....... .... ... ....... ... .. .. . ..... .... ..... .... ..... ..... ... ... — SIPIM utiljty2�v�t1� �..........18 Ca .1.1 Iry .e..s.Ime.MS .......... 25 D.e.ht 2 1 � i Under GASB, the General Fund is a governmental fund, meaning it is primarily supported by taxes. It is the City's largest fund and includes the most departments and FTEs. Its primary purpose is to support the City's essential day-to-day operations. r� Ir r l� r 1 I 1 111111/11J�11J�i� �� ,.�1I10II11I�IIJIJIIII%l�i 11111111/1/lllllllll/l/ �l 11 1111 J l 11 l/ I I. 2023 2024 2025 2025 2025 Actual %of Actual Actual Actual Budgeted Variance 2025 Budget General Fund Expenditures - by Department Year-to-date thru December Beginning Fund Balance 6,887,422 6,529,427 5,586,715 5,586,715 Revenues Charges for Services 2,245,457 2,281,936 2,485,710 4,016,913 (1,531,204) 62% Fines and Forfeits 3,877 3,977 5,391 11,900 (6,509) 45% Intergovernmental 476,899 623,404 924,346 954,432 (30,086) 97% Licenses and Permits 522,199 534,397 611,318 486,000 125,318 126% Miscellaneous Receipts 404,609 414,577 537,293 378,997 1 58,296 142% Operating Transfers In 105,362 429,209 366,886 161,000 205,886 228% Other Financing Sources 100 - - - - Otherincr.in Fund Resources 390 800 1,539 35,000 (33,461) 4% Taxes 10,804,203 11,493,177 12,365,065 11,769,552 595,513 105 o Total Revenue 14,563,096 15,781,477 17,297,547 17,813,794 (516,247) 97% Expenditures Capital Expenditure 287,213 244,298 184,795 154,000 30,795 120% Debt Service 37,538 37,538 34,337 - 34,337 Expenditure 3,127,019 4,460,510 6,924,760 6,560,950 363,810 106% Operating Transfer 6,202,164 6,448,929 4,849,743 5,814,518 (964,775) 83% Payroll Expense 5,267,1 56 5,532,915 5,856,485 6,841,374 (984,889) 86% Total Expenditures 1 14,921,092 16,724,189 17,850,121 1 1 19,370,842 1 1 (1,520,721) 92% Net Change in Fund Balance (357,994.18) (942,712.00) (552,573.73) (1,557,047.62) Ending Fund Balance 6,529,427.38 5,586,715.38 5,034,141.65 4,029,667.76 Reserve Policy: 8%- 15%of Revenues General Fund Expenditures - by Department Year-to-date thru December 2023 2024 2025 2025 2025 % of 2025 Actual Actual Actual Budgeted Variance Budget Non -departmental 2,242,052 3,088,007 2,454,897 3,740,775 (1,285,878) 66% Mayor & Council 136,662 142,279 241,232 237,581 3,651 102% City Manager 312,247 325,773 326,957 357,377 (30,420) 91% City Attorney 647,013 800,352 773,825 762,723 11,102 101% Communications 30,485 108,380 158,737 190,592 (31,855) 83% Human Resources 367,008 508,563 531,740 495,865 35,875 107% DSD 1,257,465 1,693,920 1,938,990 2,446,871 (507,881) 79% Finance Dept 600,647 1,078,913 1,450,499 1,235,130 215,369 117% Police Admin 977,524 1,196,015 1,075,958 1,219,402 (143,444) 88% Police Operations 3,061,826 3,103,099 3,447,308 3,754,859 (307,551) 92% Police Training 15,181 12,943 18,001 44,100 (26,099) 41% City Clerk 424,890 378,376 218,263 254,588 (36,325) 86% Contracts 884,767 924,225 991,801 978,843 12,958 101% P. E.G. Acess Studio 3,211 2,423 3,166 2,000 1,166 158% Fund Equity & Transactions 3,960,113 3,360,922 4,218,747 3,650,136 568,611 116% Total Expenditures 14,921,090 16,724,189 17,850,121 19,370,842 (1,520,721) 92% Payrdd� �by Fund wiFth Gene4�� Fund Broken Out Below is a pie chart breaking out all funds by 2025 payroll expenses with the general fund making up 43% of all funds. I ota I Rorm TcAal Public Woi ks Adaflin TY, TY, I oal I ooOperating S, Main 2% I o a I C o rn rn u n l y So ry l ce s TcAal I llulialy I ota I I I Ope ra tl nP, S, IMaln I o(al �Invjnoorhnv, sorvk('S I)IXI I o�al wator Sower IAI uuL Mah, L(,Inainu I o�al I odghng I ly, I o(al InornjployrnonSch In 0% Tidal I urnen's Iluuucicuu I lurnan Resoul Lus Uornoy , X -Iork V, T I u n l L a o n S I ly, Ma Y o I- S, C o U n cII VX Even though we have drawn the balance down over the years the general fund remains way above the minimum balance. °° ein ilia IIII IIII°°° ind IIIIIes hir e IIII')IIIIiiii s Endfing II'°°° ind B IIII nce 2025 6,000,00 5,000,000 4,000,000 2,439,510 IA 3,650,338 3,000,000 �o Reserve Upper Far 2,000,000 Reserve NAInIrnwr[ .�,000,00 2025 urlVd Findling Fund Balance 0 Resei ve uJl)l)crw I -al get (I5%� Id Resei ve IV1 inn- xurn (8%� Reserve Policy: 8% - 15% of Revenues 2025 Beginning Fund Balance 5,586,715 Net Operating Result (Revenues - Expenditures) (552,574) Ending Fund Balance 5,034,142 Total Revenues 1 17,297,547 Reserve Minimum (8%) 1,383,804 Reserve Upper Target (15%) 2,594,632 Ending Fund Balance as % of Revenues 29% Amount Above Minimum Reserve 3,650,338 Amount Above Upper Target 2,439,510 Below is the non -tax portion of the General Fund J» J l �111 ��l�ll 111 �rt�rrt l J J lJ J 1 J JJJ1JJ11J��� �f 1�fll /11 11111�111l�11JJ l l Il l�1 1 1 1, f 11 if f r l l r General Fund - Licenses & Permits Year-to-date thru December 2023 2024 2025 2025 2025 % of2025 Actual Actual Actual Budgeted Variance Budget Business Licenses $131,952 $136,587 $132,076 $140,000-$7,924 94% Building Permits $385,779 $395,869 $443,944 $336,000 $107,944 132% Jefferson Fire Permits $0 $0 $31,926 $8,000 $23,926 399% Other Permits $35 $60 $55 $0 $55 TV Public Access Fee $4,433 $1,881 $3,317 $2,000 $1,317 166% Licenses & Permits $522,199 $534,397 $611,318 $486,000 $125,318 126% General Fund - Charges for Goods & Services Year-to-date thru December 2023 2024 2025 2025 2025 % of2025 Actual Actual Actual Budgeted Variance Budget OH/Rentals $1,700,873 $1,661,705 $1,603,088 $3,317,020 -$1,713,932 48% Fee in lieu of str and sidwlk -$5,000 $0 $45,600 $0 $45,600 Admin Fees $493,915 $536,013 $530,877 $496,493 $34,384 107% Planning Services $26,267 $35,859 $72,777 $56,000 $16,777 130% Zoning & Subdivision Fees $25,025 $44,558 $50,736 $45,000 $5,736 113% Plan Review Fees $0 $825 $144,913 $85,000 $59,913 170% Technology Fee $0 $5 $34,701 $14,000 $20,701 248% Warrant Fees $0 $0 $0 $0 $0 Photocopying $268 $186 $184 $200 -$16 92% Copy/Tape Fees $0 $0 $0 $100 -$100 0% Public Safety Services $3,988 $2,765 $2,833 $3,000 -$167 94% Booking Fee $120 $0 $0 $100 -$100 0% Crime & Conviction $0 $0 $0 $0 $0 DUI Emerg Prep $0 $0 $0 $0 $0 Dist Court Admin Fees $0 $0 $0 $0 $0 Adult Probation Charges $0 $0 $0 $0 $0 Electronic Monitoring $0 $0 $0 $0 $0 Public Records Fees $0 $0 $0 $0 $0 Other Governmental Services $0 $0 $0 $0 $0 Other Services $0 $20 $0 $0 $0 Attorney & Legal Services $0 $0 $0 $0 $0 DSD Inspection Fee $0 $0 $0 $0 $0 GMA- Impact Fees $0 $0 $0 $0 $0 SEPA Mitigation Fees $0 $0 $0 $0 $0 Other Fees $0 $0 $0 $0 $0 Charges for Goods & Services $2,245,457 $2,281,936 $2,485,710 $4,016,913 -$1,531,204 I MR N W"'tI Below is a breakdown of the general funds tax revenues. F/01 Ime "NO 00 Kl vvvisiaiCal,lv I'dq'I General Fund Tax Revenue Year-to-date thru December 2023 2024 2025 2025 2025 % of 2025 Actual Actual Actual Budgeted Variance Budget Sales Taxes $3,466,079 $3,687,405 $3,985,374 $3,912,965 $72,409 102% iii Property Taxes $2,506,798 $2,657,720 $2,659,727 $2,659,000 $727 100% Garbage Utility Tax $678,348 $692,708 718,030 $562,000 $156,030 128% M gg Wate r Ut i I ity Tax $687,283 $797,485 949,742 $707,996 $241,746 134% MR Sewer Utility Tax $598,284 $647,962 816,400 $683,068 $133,332 120% Storm Utility Tax $162,985 $218,038 289,772 $172,522 $117,250 168% mwM, Total Public Utility Taxes V $2,126,900 $2,356,193 $2,773,944 $2,125,586 $648,358 131% M9 B&O: Business Tax $1,055,988 $1,123,400 1,169,153 $918,000 $251,153 �Mffl 127% M, B&O: Electric $756,944 $759,117 792,766 $754,800 $37,966 105% B&O: Television Cable $68,846 $33,038 68,846 $25,000 $43,846 275% B&O: Telephone $135,197 $146,863 112,777 $173,400 -$60,623 65% Total B&O Taxes $2,016,975 $2,062,418 $2,143,542 $1,871,200 $272,342 115% Timber Excise Tax $16 $17 $10 $0 $10 .............. PILT- PUD Broadband $0 $0 $176 $0 $176 412, NOW MNOgffl,Leasehold Excise Tax $184,510 $188,341 $207,168 $191,025 $16,143 NIN, 108% M" I p se Tax Sp -Id UIPU $500,854 $541,084 $595,123 $1,009,776 -$414,653 59% General Fund Tax Revenue $10,802,133 $11,493,177 $12,365,065 $1 1,769,5 52 $595,513 105% Innowl Businesses collect Sales Tax in Month 1 and then file with the D.O.R. in Month 2, and the City doesn't receive our portion until Month 3, so Sales Tax is recorded in the accounting system about two months after it's generated. Of the combined 9.4% sales tax rate 6.5% goes to the state 2.9% is distributed back to local jurisdictions (The City only gets a portion of that 2.9%). auuuuuuuumuum mu,k 0,�1!�. mmiowwaw nm,u;`, 024 021 0,k2 0) auuuuuuuuuuuuu mu, k 0 ) 0 IIII Funds SaIIIes 5, 2020 2025 Month Received JAN I I 13 MAIR APIR MAY JUN JUL AUG cal 11 OC.T NOV I I C. M u',:b fl'dI SaIIIes F , Quairteir 4 vs Yeairl�yl 2sus s,6r s r s6 Fiscall Year NAnnImI Iot a1 (44 Oct I)(c c:; 2020 2021 2022 2023 2024 2025 44Oct—Dec Annual Total $843,774 $1,046,420 $1,278,758 $1,286,267 $1,739,516 $1,892,810 $2,333,673 $2,753,714 $3,299,098 $3,487,198 $4,440,400 $5,309,565 % of Year 36% 38% 39% 37% 39% 36% Sales tax has concistently remained the General Fund's largest revenue source. Most sales tax goes to the General Fund. The voter -approved Transportation Benefit District portion (the increase from 9.1% to 9.4%) is recorded in a separate special revenue fund because it can only be used for street -related work. A small portion is also dedicated to affordable housing. a IIII I �x F tvi iiii ° iiii iiii llll� ° iiii 5 Geiw ofFund lf"TIuiisI: mi-LaLloiiBeII01LDisLil(A ma, A ffo daloIeHouse 0 i Propefty Tax Property taxes are billed and collected by the Jefferson County Treasurer and then distributed to the City as General Fund revenue. Property taxes are due in two installments: at least half by April 30, and the remaining balance by October 31. 2020 AM 2022 larMCM,CMCMCM 0 3 -2024 2025 zCMCM,CMCMCM II II f u air°ids Piropeirty I. , 2020...2025 Moiii m fli Received JAIV I B IMAIR Af IR MAY JUIN JUI AUG "111 OCT NOV DIIC unt1 S II II f u iii ids Piropeirty I.. iilrt iilr 4, vs Yeairl�yl ;z4024V 9 $4A 0`,6,A76 3,456,61.6 $25 775,388 ,r2.,818872. u1V III(, n/ n/ Fiscall Year HAnnual lot:,l I W Oct L'w('c 2020 2021 2022 2023 2024 2025 Q4Oct—Dec Annual Total $1,106,240 $1,125,273 $1,383,100 $1,527,252 $1,552,502 $1,599,317 $2,775,388 $2,81 8,872 $3,456,61 6 $3,843,643 $4,024,449 $4,056,476 % of Year 40% 40% 40% 40% 39% 39% 10 Property tax has consistently been the second-largest revenue source for the General Fund, but this year it finished just behind Public Utility Tax. Not all property tax revenue goes to the General Fund. The Library has its own voter -approved lid lift, which is its only source of revenue. We also receive Debt Service property tax revenue from the voter -approved Mountain View bond levy. perty I iiir iiu iiii iiii iiii IIII iiii u � 11 The City charges a utility tax on the gross revenues of its Water, Sewer, and Storm utilities. Effective April 1, 2024, the rate is 16%, and this tax is recorded as General Fund revenue and a utility fund expense. The City contracts with Olympic Disposal for garbage, recycling, and yard waste services, which are subject to a 22% City utility tax. Per PTMC 5.84.030, as amended by Ordinance 3329 (2/20/2024). City of Port Townsend 4th Quarter Financial Report - 202 5 Public Utility Tax Q4 Actual 2025 Water 244,272 Sewer 210,571 Storm 73,009 Garbage 184,020 Total 711,872 2024 216,216 178,366 58,586 106,513 559,682 2023 207,578 158,428 37,814 216,222 620,042 2022 191,855 153,395 42,376 117,046 504,672 2021 157,330 142,175 33,856 93,293 426,654 2020 145,994 135,229 31,988 1 31 ,1 75 444,386 Annual -------------------------------------------------------------------------------------------------------------------------------------- 1 ;1 T'3r3,;:i '11986J �3 37 1111111111111 �i 1 111 $1 672 36 3 J///� t.44' 0 (t Dec $ 1, t�t�t�t000 jl�(({j1j�1�'t Ply not $t� 2025 Water 949,742 Sewer 816,400 Storm 289,772 Garbage 718,030 Total 2,773,944 2024 797,485 647,962 202,776 692,708 2,340,931 2023 687,283 598,284 151,576 678,348 2,115,491 2022 635,994 574,328 150,346 595,485 1,956,153 2021 594,849 558,328 139,085 497,135 1,789,397 2020 543,793 527,562 128,333 472,681 1,672,369 Q4 Oct -Dec Annual Total 2020 $444,386 2021 $426,654 2022 $504,672 2023 $620,042 2024 $559,682 2025 $71 1 ,872 $1,672,369 $1,789,397 $1,956,153 $2,115,491 $2,340,931 $2,773,944 %of Year 27% 24% 26% 29% 24% 26% 12 The City charges a local Business & Occupation (B&O) tax on the taxable gross receipts of businesses doing business within City limits. Businesses with $100,000+ in annual gross revenue from work performed or goods delivered/sold inside the City are required to file (separate from the State's B&O), and the tax is 0.2% (0.002) of taxable gross revenue. City of Port Townsend 4th Quarter Financial Report - 2025 Business & Occupation Tax Q4 Actual 2025 B&O 281,777 Electric 151,127 Telephone 30,428 Cable 15,170 Total 478,502 2024 294,348 137,488 29,808 16,249 477,892 2023 269,330 131,641 33,477 17,360 451,808 2022 240,282 127,595 34,565 18,446 420,887 2021 339,488 0 42,431 19,632 401,550 2020 202,130 116,108 39,855 19,626 377,719 Annual -------------------------------------------------------------------------------------------------------------------------------------- $2j) �),ti 5 $2j.)62i 4..IS $ L,657,73`i $ I,1"Y1" %279 IN Iffl AnY1ual Fo1 al a Q4 00 Dec 22 �( 2025 B&O 1,169,153 Electric 792,766 Telephone 112,777 Cable 68,846 Total 2,143,542 2024 1,123,400 759,117 146,863 33,038 2,062,418 2023 1,055,988 756,944 135,197 70,917 2,019,045 2022 895,666 551,547 146,163 75,903 1,669,279 2021 953,406 553,266 168,341 80,638 1,755,651 2020 756,790 665,075 157,430 77,939 1,657,235 Q4 Oct -Dec Annual Total 2020 $377,719 2021 $401,550 2022 $420,887 2023 $451,808 2024 $477,892 2025 $478,502 $1 ,657,235 $1 ,755,651 $1,669,279 $2,01 9,045 $2,062,418 $2,143,542 %of Year 23% 23% 25% 22% 23% 22% 13 Real Estate Excise Tax (BEET) is a restricted revenue that supports capital projects and certain planning costs. Port Townsend receives REET when property is sold, and the proceeds go into a special revenue fund because they can only be used for specific eligible purposes, like capital improvements. REET 1 and REET 2 now have the same allowed uses, so both can fund the same types of eligible projects. REET is the primary source of funding for our General Capital fund. City of Port Townsend 4th Quarter Financial Report - 2025 Real Estate Excise Tax Q4 Actual Estate Tax 1 Estate Tax 2 Total 2025 107,703 107,703 215,406 2024 103,490 103,490 206,979 2023 1 1 7,097 1 1 7,097 234,194 2022 1 42,1 28 1 42,1 28 284,256 2021 116,360 116,360 232,719 2020 97,648 97,648 195,296 Annual Estate Tax 1 Estate Tax 2 Total 2025 403,320 403,320 806,640 2024 306,807 306,462 613,269 2023 347,681 347,681 695,361 2022 470,948 470,948 941,896 2021 422,708 41 9, 51 3 842,221 2020 1261,283 261,283 522,565 -------------------------------------------------------------------------------------------------------------------------------------- $')of7,000 $842,22'1. 306,64i:1 y 613,269 $ `.D22, bil5 �. ua Q4 OctDec $400,000 $0 '.. 2020 2021 2023 2024 2021� Q4 Oct -Dec Annual Total 2020 $195,296 2021 $232,719 2022 $284,256 2023 $234,194 2024 $206,979 2025 $215,406 $522,565 $842,221 $941,896 $695,361 $613,269 $806,640 of Year 37% 28% 30% 34% 34% 27% 14 Lodging tax (hotel/motel tax) is a restricted revenue source that supports tourism -related activities. Port Townsend receives lodging tax on overnight stays, and the proceeds are deposited into a special revenue fund because state law limits how it can be used. LTAC monies funded 50% of our Communications & Marketing Director and 50% of our Arts & Culture Coordinator position. City of Port Townsend 4th Quarter Financial Report - 2025 Lodging Tax Q4 Actual Hotel 2025 Motel Tax 89,228 Lodging Tax Stadium 89,228 Total 178,455 2024 31,395 172,930 204,325 2023 108,489 128,337 236,826 2022 130,655 130,780 261,434 2021 89,962 91,819 181,781 2020 67,025 67,069 134,094 Annual ------------------------------------------------------------------------------------------------------------------------------------- 6407 736 "xCy02j.67 ( $525J)79 Y VIttAnnwal ��Vclgl ;xlulu�i,`547 4 Y, Hotel 2025 Motel Tax 277,763 Lodging Tax Stadium 277,763 Total 555,526 2024 290,147 335,085 625,233 2023 320,855 319,881 640,736 2022 301,754 300,413 602,167 2021 261,547 263,531 525,079 2020 169,925 169,622 339,547 2020 2021 2022 2023 2024 2025 Q40ct-Dec Annual Total $134,094 $181,781 $261,434 $236,826 $204,325 $178,455 $339,547 $525,079 $602,167 $640,736 $625,233 $555,526 %of Year 39% 35% 43% 37% 33% 32% 15 l Our Water Utility is an enterprise fund (still combiend with sewer) supported primarily by water rates paid by customers. Because it operates like a business (users pay for the service), revenues are restricted and can only be spent on operations, maintenance, and system improvements. The Water portion of the fund includes the Water Distribution department and the Water Quality Department. City of Port Townsend 4th Quarter Financial Report - 2025 Water Utility Q4 Actual Cap. Sales - Water Sales Irrigation Surcharge Utility Tax Total 2025 1,526,700 93,678 -105 0 1,620,272 2024 1,351,352 58,500 -207 0 1,409,646 2023 333,362 62,266 367,806 656,019 1,419,453 2022 803,438 69,873 54,908 191,855 1,120,075 2021 668,127 42,965 49,485 157,330 917,907 2020 633,903 29,705 48,944 145,994 858,546 Annual Cap. Sales - Water Sales Irrigation Surcharge Utility Tax Total 2025 5,935,886 266,778 1,552 0 6,204,216 2024 4,996,842 157,993 508,666 0 5,663,501 2023 3,118,994 166,990 615,798 656,019 4,557,802 2022 2,795,257 157,517 278,096 635,994 3,866,864 2021 2,578,064 121,749 197,743 594,849 3,492,405 2020 2,400,918 70,869 193,881 543,793 3,209,461 -------------------------------------------------------------------------------------------------------------------------------------- >6,204,21.6 $("000,.000 $5,.663, 501. $1'000,000 ;4= 5J7,802 ��n,r�(�(�,r�(�(� 3Y 492,40 ,>�s,�s66,�s6�u a 6�������a�i r(�A��i ;>� ,xc�r(,�u.6�. iw"Q4 OU A'L $'�s,666,666 $"'066,666 } / % } 6 �lrrrrrr�rrG $0 _ MM 2021 2020 2021 2022 2023 2024 2025 440ct-Dec Annual Total $858,546 $917,907 $1,120,075 $1,419,453 $1,409,646 $1,620,272 $3,209,461 $3,492,405 $3,866,864 $4,557,802 $5,663,501 $6,204,216 %of Year 27% 26% 29% 31% 25% 26% 16 Our Sewer Utility is treated the same as the water utility. The Sewer portion of the combined fund includes the following Citv Departments: Waste Water Treatment. Sewer Collections. and Biosolids. City of Port Townsend 4th Quarter Financial Report - 2025 Sewer Utility Q4 Actual Service Service - Cap. Charges Utility Tax Surcharge Total 2025 1,316,069 0 0 0 1,316,069 2024 1,114,788 0 8 0 1,1 14,796 2023 107,509 743,281 119,764 0 970,555 2022 698,800 153,395 44,032 0 896,227 2021 646,762 142,175 39,044 0 827,981 2020 614,679 135,229 38,640 0 788,549 Note: Utility Billing only - excludes other sewer fund revenues (septic discharge fees) Annual Service Service Cap. Charges Utility Tax Surcharge Total 2025 5,102,501 0 29 0 5,102,531 2024 4,051 ,775 0 165,910 0 4,21 7,686 2023 2,590,779 743,281 199,969 0 3,534,030 2022 2,655,401 574,252 183,994 0 3,413,647 2021 2,538,369 558,328 154,116 0 3,250,813 2020 2,398,007 527,562 154,265 0 3,079,834 -------------------------------------------------------------------------------------------------------------------------------------- f) ),000,000 $4,21.7,6H "x3�4:1 i3,647 $ ;x3,Ci7�),33�4 813 � M4'M AnY ual FC1 al I/ 2 K}=M ///%1/l1//%/%%%%/lI'. IJIIIIJIJIIIIII %iilfl IJIIIIIIII '.�����ij��%l/IIIf'. Q40ct-Dec Annual Total 2020 $788,549 2021 $827,981 2022 $896,227 2023 $970,555 2024 $1,114,796 2025 $1,316,069 $3,079,834 $3,250,813 $3,413,647 $3,534,030 $4,217,686 $5,102,531 %of Year 26% 25% 26% 27% 26% 26% 17 i Storm Utility is an enterprise fund supported by stormwater rates paid by customers. Revenues are used to operate and maintain the stormwater system, manage runoff and flooding, and fund repairs and capital improvements. City of Port Townsend 4th Quarter Financial Report - 2025 Storm Utility Q4 Actual Drainage Service - Reg Facility Urban Charges Utility Tax SDC Forestry Res Cap Chg Total 2025 456,305 0 17,289 6,966 0 480,560 2024 393,725 0 19,245 6,811 2 419,783 2023 25,576 199,844 0 0 83,105 308,526 2022 207,575 45,565 0 0 82,530 335,671 2021 165,585 36,404 0 0 81,167 283,156 2020 156,345 34,396 0 0 80,166 270,907 Annual Drainage Service - Reg Facility Urban Charges Utility Tax SDC Forestry Res Cap Chg Total 2025 1,811,074 0 89,345 27,868 12 1,928,300 2024 1,363,494 0 20,592 18,184 115,048 1,517,318 2023 707,726 199,844 0 0 332,323 1,239,893 2022 744,876 161,661 0 0 329,854 1,236,391 2021 679,902 149,554 0 0 323,730 1,153,186 2020 627,238 137,992 0 0 320,251 1,085,481 •------------------------------------------------------------------------------------------------------------------------------------- K} e,"y.") 0 0y 0 0 0 $1,928y300 "%:1. 51. 7y31.8 MMMAnnual Foa al $ I.53J.BG, '`%lyi'3G,y3�).1. %.l.yi'3�)y3�)3 %.I.y(i8:ay48.1. m,Q4 0C Ik4'.c: /���(��. k%�„M _ arii✓unar� JIIfJJJIJ�I,II)�1)1)�l)�� GII111, 90/lll/!�t 202 .M 202 j. 2022 202,11 2024 02�} IN 2020 2021 2022 2023 2024 2025 Q40ct-Dec Annual Total $270,907 $283,156 $335,671 $308,526 $419,783 $480,560 $1,085,481 $1 ,1 53,1 86 $1 ,236,391 $1 ,239,893 $1 ,51 7,31 8 $1 ,928,300 of Year 25% 25% 27% 25% 28% 25% Olympic Gravity Water System (OGWS) Fund is a dedicated utility fund that pays for the shared raw - water supply system that serves both the City and the Paper Mill. It is funded by charges based on actual water use (the City's share and the Mill's share), and those revenues are used to cover OGWS operations, maintenance, emergency repairs, and long-term capital improvements. The City pays into this fund from the Water Operating Fund. City of Port Townsend 4th Quarter Financial Report — 2025 Olympic Gravity Water System (OGWS) Q4 Actual Water Sales Total 2025 919,079 0 0 0 0 919,079 2024 1,354,801 0 0 0 0 1,354,801 2023 1,266,368 0 0 0 0 1,266,368 2022 812,402 0 0 0 0 812,402 2021 0 0 0 0 0 0 2020 0 0 0 0 0 0 Note: This data starts April, 2022 with the Water Supply Agreement with the Paper Mill Annual Water Sales Total 2025 4,654,649 0 0 0 0 4,654,649 2024 4,921,737 0 0 0 0 4,921,737 2023 4,733,337 0 0 0 0 4,733,337 2022 2,464,976 0 0 0 0 2,464,976 2021 0 0 0 0 0 0 2020 0 0 0 0 0 0 •------------------------------------------------------------------------------------------------------------------------------------- $("000,000 ,v1,. C.:5.:5,..:5..5 C ;'v4�654� Fly () eAnnual r[Aal x / 64976 w, Q4 OU DeL $',�,000,000 {Y 0% ¢',k0 (IQQQQQQQQQQfif 2020 2021 2022 2023 2024 2025 Q4 Oct -Dec Annual Total $0 $0 $812,402 $1,266,368 $1,354,801 $919,079 $0 $0 $2,464,976 $4,733,337 $4,921,737 $4,654,649 of Year 33% 27% 28% 20% 19 %,% Our Capital Funds are treated like project ledgers. All the expenses are coded to them and then later a reimbursement is processed from a grant or a transfer is done from the operating funds (Water, Sewer, Storm etc.) so that the net result for that project is 0. However we do have revenue from Banked Capacity and Donations that sit in these funds. 1 1 t r1 �r «rr l �r ill 1 � 1 � � 1 1�l l l �111J1J111 �� �llfl �llll �ll �lll llllllll/llll J ll ll l l / Capital Projects Funds Year-to-date thru December 2023 2024 2025 2025 2025 % of 2025 Actual Actual Actual Budgeted Variance Budget General Capital Revenues 929,891 1,408,768 330,788 1,423,495 -1,092,707 23% Expenditures 1,385,112 651,652 370,129 1,373,491 -1,003,362 27% Streets Capital Revenues 1,383,900 4,577,245 3,291,922 4,884,251 -1,592,329 67% Expenditures 714,288 5,699,405 2,068,073 5,291,521 -3,223,449 39% Water/Sewer Capital Revenues 1,062,385 569,763 5,043,538 15,376,213 -10,332,674 33% Expenditures 1,127,359 1,449,445 4,190,711 14,607,261 -10,416,551 29% Storm Capital Revenues 200,077 164,082 29,065 90,000 -60,935 32% Expenditures 29,786 56,114 138,470 178,392 -39,922 78% Total Revenue 3,576,253 6,719,858 8,695,313 21,773,959 -13,078,646 40% Total Expenditures 3,256,545 7,856,616 6,767,382 21,450,666 -14,683,284 32% Below is a quick comparison between the utility operating funds and the utility funded capital project funds. l l �1111 r 1 �������1J��1� 11>1111/111>ll r 111/11JJ111111JJ �J 1 1>ll I /1/ JJ ll J � 111 l ll I 1111� J 1 l 11 1. ll I Utility Operating Funds Year-to-date thru December 2023 2024 2025 2025 2025 % of 2025 Actual Actual Actual Budgeted Variance Budget Water/Sewer Fund Revenues 10,047,750 12,080,412 14,108,819 12,354,698 1 ,754,1 21 1 14% Expenditures 9,115,304 9,854,356 10,362,804 16,099,517 (5,736,713) 64% Storm Fund Revenues 1,255,255 1,545,055 2,038,453 1,545,000 493,453 132% Expenditures 1,445,436 1,258,872 1,393,312 1,693,949 (300,637) 82% Utility Capital Projects Funds Year-to-date thru December 2023 2024 2025 2025 2025 % of 2025 Actual Actual Actual Budgeted Variance Budget Water/Sewer Capital Revenues 1,062,385 569,763 5,043,538 15,376,213 -10,332,674 33% Expenditures 1,127,359 1,449,445 4,190,711 14,607,261 -10,416,551 29% Storm Capital Revenues 200,077 164,082 29,065 90,000 -60,935 32% Expenditures 29,786 56,114 138,470 178,392 -39,922 78% 20 f ,r l� , d � I is is Revenues Expenses I Fund Balances I YTD Net Gain/Loss Year-to-date thru December 2025 2025Yea r,,- Date" Beginning Balanct Revenues � Expenditures Ending Balance Net Gain / Lass ' FUND 010 General Fund 5,586,715 17,297,547 17,850,121 5,034,142 (552.574) 101 Drug Enforcement 1,085 0 0 1,085 0 102 Contingency Fund 257,164 67,163 12 324,315 67,151 103 ARPA 548,745 0 548,745 0 (548,745) 1 10 Street Operations Fund 670,780 1 ,491 ,861 1 ,491 ,861 670,780 0 111 Transpo Benefit District (TBD) 141,256 1,336,309 1,077,691 399,874 258,618 120 Library Fund 722,367 1,287,628 1,130,708 879,287 156,920 135 Real Estate Excise Tax Fund 1,371,480 858,244 647,077 1,582,647 211,167 150 Lod g ing Tax Fund 1,188,605 586,434 670,942 1,104,096 (84.509) 160 1%Arts Fund 0 7,900 0 7,900 7,900 1 71 Fire and EMS Fund 7,897 (7,897) 0 0 (7,897) 180 Affordable Housing Fund 49,704 97,125 82,492 64,337 14,633 1 90 Community Dev Block Grants 1 93,1 1 5 36,332 12 229,435 36,320 199 Community Services Fund 1,275,949 3,339,551 3,339,551 1,275,949 0 200 G.O. Debt Service Fund 1,582,520 1,443,617 1,218,609 1,807,528 225,008 301 General CIP Projects 851,090 330,788 370,129 811,749 (39,341) 304 Street Vacation Proceeds 73,771 3,342 3 77,111 3,339 305 Street CIPFund (328,376) 3,291,922 2,068,073 895,474 1,223,850 315 2015 GO Bonds 0 0 0 0 0 350 2017 GO Bond 99,766 4,684 4 104,445 4,679 355 2018GOBonds 261,759 7,690 5,965 263,485 1,725 360 2020 GO Bond 0 0 0 0 0 411 Water Sewer Fund 7,246,764 14,108,819 10,362,804 10,992,779 3,746,015 412 Storm Operations Fund 773,662 2,038,453 1,393,312 1,418,804 645,142 414 Storm Capital Fund 305,032 29,065 138,470 195,627 (109.405) 415 Water Sewer CIP (852,828) 5,043,538 4,190,711 0 852,828 417 Olympic Gravity Water System (OGWS) 9,489,097 4,883,684 1,424,634 12,948,146 3,459,049 420 2020 Water Revenue Bond 0 0 0 0 0 423 Golf Course Fund 2,550 35,174 37,723 0 (2,550) 430 Water/Sewer Debt Reserve Fund 344,189 0 344,189 0 (344,189) 495 System Deve lopment Charge 2,739,795 1,086,624 919,540 2,906,879 167,084 500 Fleet Replacement Fund 2,550,156 1,001,896 649,940 2,902,112 351,956 510 Fleet Operating & Maint. Fund (11.450) 554,671 610,987 (67.765) (56.316) 520 IT Operating & Maint. Fund 155,009 498,563 475,429 178,144 23,135 525 IT Replacement Fund 98,208 46,090 45,544 98,754 545 530 Facilities Replacement Fund 0 450,000 0 450,000 450,000 540 Public Works Admininstration 423,487 544,586 544,586 423,487 (0) 555 Engineering Services 382,630 1,489,546 1,489,546 382,630 0 595 Unemployment Self -Insurance 15,366 17,177 32,542 0 (15.366) 601 Refundable Deposits 0 0 633 (633) (633) 610 Firemen's Pension Fund 376,739 53,708 19,772 410,675 33,936 623 Golf Course Fund 0 0 0 0 0 631 Custodial Fund 47,302 150,535 122,029 75,807 28,506 632 Refundable Surety Deposits 28,743 633 0 29,375 633 633 Memorial Fund 0 0 1 0 0 0 Totals 38,669,844 63,513,002 53,304,388 48,878,459 10,208,615 21 � r r Ill fff rff 1J >ll llltlll J 1 J 1 11 f J 1 1 l J 1111 JJJJJJJJIJJ� JIJr� >l>11111 �II�JI JJ1111J 1 full 1J l l� ��l 111111 1 ll l l l 1 Ifl >t I f, Revenues Year-to-date thru December FUND 2025 Budgeted (Incl. Supl) 2025 YTD Revenues % Received O10 General Fund 17,813,794 17,297,547 97% 101 .................................................................................................... Drug Enforcement 0 0 102 .................................................................................................... Contingency Fund 68,000 67,163 99% 103 .................................................................................................... ARPA .................................................................................................... 0 0 1 1 0 Street Operations Fund 1,950,830 1 ,491 ,861 76% 1 1 1 .................................................................................................... Transpo Benefit District (TBD) 1,200,000 1,336,309 1 1 1% 120 .................................................................................................... Library Fund 1,356,000 1,287,628 95% 135 .................................................................................................... Real Estate Excise Tax Fund 685,000 858,244 1 25% 1 50 .................................................................................................... Lodging Tax Fund 615,000 586,434 95% 160 .................................................................................................... 1 % Arts Fund 0 7,900 1 71 .................................................................................................... Fire and EMS Fund 0 -7,897 180 .................................................................................................... Affordable Housing Fund 92,896 97,125 105% 190 .................................................................................................... Community Dev Block Grants 28,000 36,332 1 30% 199 .................................................................................................... Community Services Fund 3,278,679 3,339,551 102% 200 .................................................................................................... G.O. Debt Service Fund .................................................................................................... 1 ,1 1 4,71 2 1,443,617 1 30% 301 General CIP Projects 1,423,495 330,788 23% 304 .................................................................................................... Street Vacation Proceeds 0 3,342 305 .................................................................................................... Street CIP Fund 4,884,251 3,291 ,922 67% 315 .................................................................................................... 2015 GO Bonds 0 0 350 .................................................................................................... 201 7 GO Bond .................................................................................................... 0 4,684 355 201 8 GO Bonds 5,500 7,690 140% 360 .................................................................................................... 2020 GO Bond 0 0 411 .................................................................................................... Water Sewer Fund 12,354,698 14,108,819 1 14% 412 .................................................................................................... Storm Operations Fund 1,545,000 2,038,453 132% 414 .................................................................................................... Storm Capital Fund .................................................................................................... 90,000 29,065 32% 415 Water Sewer CIP ....................................................................................(OGWS................ 15,376,213 5,043,538 33% 41 7 Olympic Gravity Water System ) 4,975,000 4,883,684 98% 420 .................................................................................................... 2020 Water Revenue Bond 0 0 423 .................................................................................................... Golf Course Fund 31,000 35,174 113% 430 .................................................................................................... Water/Sewer Debt Reserve Fund 100,000 0 09/6, 495 .................................................................................................... System Development Charge .................................................................................................... 385,000 1,086,624 282% 500 Fleet Replacement Fund 957,234 1 ,001 ,896 1 05% 510 .................................................................................................... Fleet Operating & Maint. Fund 554,193 554,671 100% 520 .................................................................................................... IT Operating & Maint. Fund 496,375 498,563 1 00% 525 .................................................................................................... IT Replacement Fund 46,050 46,090 100% 530 .................................................................................................... Facilities Replacement Fund .................................................................................................... 0 450,000 540 Public Works Admininstration 736,846 544,586 749/6 555 .................................................................................................... Engineering Services 2,358,982 1,489,546 63% 595 .................................................................................................... Unemployment Self -Insurance 50,000 1 7,1 77 34% 601 .................................................................................................... Refundable Deposits 0 0 610 .................................................................................................... Firemen's Pension Fund 27,500 53,708 195% 623 .................................................................................................... Golf Course Fund 0 0 631 ........ustod..t'o.....ial..............Fund ................................................................. C 0 150,535 632 .................................................................................................... Refundable Surety Deposits 0 633 633 .................................................................................................... Memorial Fund Total Revenues 0 74,600,248 0 63,513,002 85% 22 r u, ! r 6 1 1 I I / J J f r I 1l r I Expenditures Year-to-date thru December FUND 2025 Budgeted (Incl. Supl) 2025 YTD Expenditures % Received O10 General Fund ..........................rc,......,e,n......................................................... 19,370,842 17,850,121 92% 101 Drug Enforcement 0 102 .................................................................................................... Contingency Fund 0 12 103 .................................................................................................... ARPA 915,000 548,745 60% 1 1 0 .................................................................................................... Street Operations Fund .................................................................................................... 1,965,830 1 ,491 ,861 76% 1 1 1 Transpo Benefit District (TBD) 1,469,269 1,077,691 73% 120 .................................................................................................... Library Fund 1,331,272 1,130,708 85% 135 .................................................................................................... Real Estate Excise Tax Fund 1,032,821 647,077 63% 150 .................................................................................................... Lodging Tax Fund .................................................................................................... 972,751 670,942 699/6 160 1%Arts Fund 0 0 171 .................................................................................................... Fire and EMS Fund 0 0 180 .................................................................................................... Affordable Housing Fund 92,896 82,492 89% 190 .................................................................................................... Community Dev Block Grants .................................................................................................... 20,000 12 0% 199 Community Services Fund 3,691,534 3,339,551 90% 200 .................................................................................................... G.O. Debt Service Fund 1 ,1 1 4,71 2 1,218,609 1 09% 301 .................................................................................................... General CIP Projects 1,373,491 370,129 27% 304 .................................................................................................... Street Vacation Proceeds .................................................................................................... 0 3 305 Street CIP Fund 5,291 ,521 2,068,073 399/6 315 .................................................................................................... 2015 GO Bonds 0 0 350 .................................................................................................... 2017 GO Bond 0 4 355 .................................................................................................... 2018 GO Bonds .................................................................................................... 69,249 5,965 9% 360 2020 GO Bond 0 0 411 .................................................................................................... Water Sewer Fund 16,099,517 10,362,804 64% 412 .................................................................................................... Storm Operations Fund 1,693,949 1,393,312 82% 414 .................................................................................................... Storm Capital Fund .................................................................................................... 178,392 138,470 78% 415 Water Sewer CIP 14,607,261 4,190,711 299/6 41 7 ........................................................................................W............ Olympic Gravity Water System (OGS) 1,878,289 1,424,634 76% 420 .................................................................................................... 2020 Water Revenue Bond 0 0 423 .................................................................................................... Golf Course Fund 41,100 37,723 92% 430 .................................................................................................... Water/Sewer Debt Reserve Fund 550,000 344,189 639/6 495 .................................................................................................... System Development Charge 2,023,035 919,540 45% 500 .................................................................................................... Fleet Replacement Fund 1,186,412 649,940 55% 510 .................................................................................................... Fleet Operating & Maint. Fund 642,127 610,987 95% 520 .................................................................................................... IT Operating & Maint. Fund 505,191 475,429 94% 525 .................................................................................................... IT Replacement Fund 35,250 45,544 1 29% 530 .................................................................................................... Facilities Replacement Fund 0 0 540 .................................................................................................... Public Works Admininstration 733,201 544,586 74% 555 .................................................................................................... Engineering Services 1,510,756 1,489,546 99% 595 .................................................................................................... Unemployment Self -Insurance 50,000 32,542 65% 601 .................................................................................................... Refundable Deposits 0 633 610 .................................................................................................... Firemen's Pension Fund 16,374 19,772 121% 623 .............................Course F..........und ............................................................. Golf ...........t'o-..........F..................................................................... 0 0 631 Custodial Fund 0 122,029 632 .................................................................................................... Refundable Surety Deposits 0 0 633 .................................................................................................... Memorial Fund Total Expenditures 0 80,462,042 0 53,304,388 66% 23 �����������������/I'��lJ f �(ll'111������1'�f IIII"��)✓�((���l�ll��lJ%i%��iJ�����fll/if/ �i/// Payroll Expenditures Year-to-date thru December 2025 2025 General Fund YTD Expenditures Budgeted Variance %Spent Mayor & Council City Manager City Attorney Communications Human Resources DSD Finance Dept Police Admin Police Operations City Clerk 71,058 302,592 141,655 82,319 346,614 1,124,824 816,177 812,050 2,034,094 125,101 70,394 306,663 298,463 83,282 337,115 1,374,291 850,382 875,640 2,476,135 169,009 664 (4,071) (156,808) (963) 9,499 (249,467) (34,205) (63,590) (442,041) (43,908) 101% 99% 47% 99% 103% 82% 96% 93% 82% 74% Total General Fund 5,856,485 6,841,374 (984,889) 85.60% Street Maintenance 236,253 306,567 (70,314) 77.06% Total Streets 236,253 306,567 (70,314) 77.06% Library 697,333 775,032 (77,699) 89.97% Total Library 697,333 775,032 (77,699) 89_97% Lodging Tax 119,812 83,282 36,530 143.86% Total Lodging 119,812 83,282 36,530 143.86% Non -departmental City Facilities Parks Maintenance Parks Strategy Arts 110,389 550,418 51 5,61 3 6,165 37,493 135,000 555,002 514,844 - 37,610 (24,611) (4,584) 769 6,165 (117) 82% 99% 100% 0% 100% Total Community Services 1,220,078 1,242,456 (22,378) 98.20% Utility Billing Water Dist Operations Water Quality/WTF Operations Wastewater Treatment Operation Wastewater Collection Ops Biosolids 401,921 707,124 537,490 553,294 310,263 368,324 532,002 926,762 470,043 567,164 404,207 357,674 (130,081) (21 9,638) 67,447 (13,870) (93,944) 10,650 76% 76% 1 14% 98% 77% 103% Total Water Sewer 2,878,416 3,257,852 (379,436) 88.35% Storm 424,985 413,929 11,056 103% Total Storm 424,985 413,929 11,056 102.67% Equipment Rental -Fleet 264,994 257,407 7,587 103% Total Fleet Operating & Maint 264,994 257,407 7,587 102.95% Information Services 278,703 276,530 2,173 101% Total IT Operating & Maint 278,703 276,530 2,173 100.79% Public Works Admin 354,476 564,265 (209,789) 63% Total Public Works Admin 354,476 564,265 (209,789) 62.82% Engineering 11239,792 1,174,948 64,844 106% Total Engineering Services 1,239,792 1,174,948 64,844 105.52% Non -departmental 32,542 50,000 (17,458) 65% Total Unemployment Self -Ins 32,542 50,000 (17,458) 65.08% Firemen's Pension & Relief 18,379 15,000 3,379 123% Total Firemen's Pension 18,379 15,000 3,379 122.53% Totai Expen�liRures 13,622,247 15,25,642 (1,636,395) ii92ti°fo Budget Thru Q4 $15,258,642 Budget Remaining $1,636,395 Under Budget ' 24 rly/% ( ( M'. I,i, 11 I I J�i ill III i� III , J 1 111 I/III I 1�� 1111 111 I� Portfolio Diversification Instrument Type Bank Interest Rate Percentage Amount 01 - US Bank Money Mkt XOA92 US Bank 0.83% 348,201 02 - Federal Farm CreditXPCR4 US Bank 4.750% 1.21% 503,305 03 - Federal National Mortgage XOQ22 US Bank 1 .875% 2.25% 939,566 04 - Federal Home Loan XAJM1 US Bank 3.000% 1.56% 649,531 05 - Federal Farm Credit XP4U6 US Bank 4.375% 2.39% 998,475 06 - Federal Home Loan X61370 US Bank 4.000% 17.97% 7,500,000 07 - Federal Farm Credit XREB3 US Bank 4.500% 2.40% 1,002,502 08 - Federal Home Loan X2G77 US Bank 3.109% 2.08% 867,508 09 - Federal Farm Credit XRDHI US Bank 4.750% 2.43% 1,015,358 10 - US Treasury Note XCFJ5 US Bank 3.1 25% 2.37% 988,050 11 - Resolution Funding Strip XFAB3 US Bank 3.439% 1 .90% 793,565 12 - F N M A Strip XDDR2 US Bank 5.1 25% 1.22% 508,952 13 - F N M A Strip XDDSO US Bank 6.625% 2.39% 999,168 12 - Public Money Market X681 8 Kitsap 5.000% 20.43% 8,529,999 13 - Certificate of Deposit X41 28 Kitsap 4.740% 5.37% 2,241 ,050 14 - Certificate of Deposit X5028 Kitsap 3.920% 5.33% 2,224,306 15 - State Investment Pool XO1790 LGIP 5.429% 27.87% 11,634,266 Total Investments 100% 41,743,801 Cash in Bank Amount 01 - Demand Account X261 1 8,528,709 02 - Travel Advance Account X51 1 1 0 03 - Payroll Account X341 1 0 04 - Escrow Account X791 1 26 05 - Petty Cash 06 - US Bank Safekeeping Account X4581 43,944 Net Cash in Bank 8,572,679 Total 50,316,480 25 °i u. fi2�l lid; i/i, , �i , �ui,rr, r,. ��ll .i,,✓i, „ , i��j bi i1 (fS,l;� City of Port Townsend Debt Schedule 2025 2026 2027 2028 2029 2030 2031-2035 2036-2040 LTGO and Ref 2012 LTGO 201 7B (2008 Refi) LTGO and Ref 201 7A LTGO and Ref Bond 2020 UTGO2015 Bonds LTGO2018 Water & Sewer Revenue Bond 2020 395,900.00 965,000.00 966,000.00 966,000.00 965,000.00 963,000.00 6,598,400.00 354,714.58 356,540.38 352,538.24 353,077.28 352,811.48 356,731.22 276,871.08 276,801.62 302,200.00 303,000.00 298,400.00 1 298,600.00 298,400.00 302,800.00 301,600.00 61,896.38 61,896.38 61,896.40 61,896.38 61,896.38 61,896.38 309,481.92 278,500.80 118,879.92 1,233,590.88 118,912.28 1,805,349.04 118,908.92 1,797, 743.56 118,874.08 1,798,447.74 118,876.08 1,796,983.94 118,934.48 1,803,362.08 594,533.38 8,080,886.38 594,6564 0. 1,149,953.06 l J f JJ J r � J I f r, 1 1, City of Port Townsend Debt Schedule - Balances thru December Start Final Payment Total Current Date Date Total Principal Interest Debt Service Balance LTGO and Ref 2017A (BG) 2008 Refi - Non Taxable Bond 12/1/2017 12/1/2035 30,000.00 365,900.00 395,900.00 9,125,000.00 LTGO and Ref Bond 2020 2010 Refi 12/1/2010 12/1/2040 313,400.00 41,314.58 354,714.58 2,126,600.00 UTGO 2015 Bonds Mountain View Improvements 12/1/2015 12/1/2031 230,000.00 72,200.00 302,200.00 1,575,000.00 LTGO 2018 Homeward Bound Debt Svs. 12/1/2018 12/1/2040 32,112.83 29,783.55 61,896.38 660,508.21 Water and Sewer Revenue Bond 2020 12/1/2020 12/1/2040 86,100.00 32,779.92 118,879.92 1,495,700.00 Total 691,612.83 541,978.05 1,233,590.88 14,982,808.21 MoneyWhere The 26 City0fPort T Townson Agenda Bill: 26-035 Meeting Date: April 6, 2026 Agenda Item: Consent VIII.F ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Melody Sky Weaver Date Submitted: April 2, 2026 Department: Community Services Department Contact Phone: 360-344-3054 SUBJECT: Resolution 26-005 Authorizing the City Manager to Negotiate and Execute Agreements for Services CATEGORY: BUDGET IMPACT: No impact 0 Consent 0 Resolution Expenditure Amount: see attached ❑ Staff Report ❑ Ordinance Included in Budget? Yes 0 No❑ ❑ Contract Approval ❑ Other: Discussion Item ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: 1 - Build small town quality of life Cost Allocation Fund: 010-093 GF - Non-Departmental/Contracts SUMMARY STATEMENT: The City enters into recurring contracts with certain regional groups and for certain services. Staff recommends continuing with these contracts and has proposed amounts in the 2026 budget to cover those agreements. The contracts are as follows: Port Townsend Main Street Program for community beautification, economic development, and maintenance. ATTACHMENTS: • Resolution 26-005 • PTMS 2026 City TIP Funding Request • PTMS 2026 Workplan 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 Resolution 26-005 Authorizing the City Manager to Negotiate and Execute Agreements for Services. ALTERNATIVES: 0 Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action 0 Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Resolution 26-005 RESOLUTION NO. 26-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AGREEMENTS FOR SERVICES WHEREAS, the City of Port Townsend ("City") enters into agreements to participate in regional entities and for certain additional services; and, WHEREAS, upon review of these agreements, staff recommends continuing with the same entities and service providers. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: Section 1. The City Manager is authorized to negotiate and execute agreements with the entities or organizations listed at Exhibit A, in amounts not to exceed that provided for in the City's Budget. Section 2. The City Manager is authorized to take all administrative actions consistent with the intent of this Resolution. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 6thst day of April 2026. Amy Howard Mayor Alyssa Rodrigues City Clerk POI I"'I' I IEJI' Il IIMXHN `P IEJE"T` GII"I. GF IP I 1 '1m ' I IE III Il IFti III Il 111 III ( IEQ1 IE 1' 2026 TIP Funding Request Prepared by: Natalie Maitland, Port Townsend Main Street Executive Director September 4, 2025 / Updated February 2026 Prepared For & Presented To: -John Mauro, City Manager At,mut Port 'To nse,,,ind Vlain Street Prograrn (IP'TII Port Townsend Main Street Program's mission is to preserve, promote, and enhance our historic business districts, which include uptown and downtown Port Townsend. Now the nonprofit is in the 40th year of work in our community and looking forward to the next 40 years of continuing to make an impact. From beloved events like Concerts on the Dock to place making projects like the creation of Adams Street Park, to tourism support, destination marketing, business development, historic preservation, and care of the historic commercial districts, the organization supports the Port Townsend community in many ways. Collaboration and partnership are key to the vitality of the commercial districts and key to future strategic initiatives. Our four -pillar approach - organization, design, promotion and economic vitality - ensures balance in our mission and support of the community's vitality. Port Townsend Main Street presents this proposal for funding consideration to the City of Port Townsend in 2026 through the Washington State Tax Credit Incentive Program. We are requesting the City of Port Townsend commit to our Main Street Program $150,000 in 2026. It should be noted 75% of this commitment is returned as a credit on its Public Utility Tax (PUT) in 2026. This equates to an out-of-pocket expense of $37,500. The following proposal outlines work to be performed in the Uptown and Downtown areas, continued and new direct project costs along with organizational support for the ongoing work Port Townsend Main Street does to benefit the City of Port Townsend in four focused areas of Organization, Design, Promotion, and Economics (including administering the two loan programs). IBireakdown costs for the scope of soirviioos iinCllUos: Projects with 2 2 'Tax Credit Incentive Program Funding: ILandscaping/Downtown Raiingairdens $23,000 ILandscaping/Uptown Raiingairdens $17,000 Adams Street Pairk/Tylleir Plaza Landscaping $6,000 Pllantiings/Supplliies $7,000 Truck IMaiintenance/Fuel)/Ilnsuirance $3,500 Bird Abatement Program $1,500 Landscaping Project Oversight $4,000 TotaL $62,,000 Increases in proposed costs are due to additional labor for establishing new plantings and labor where irrigation is no longer available along with increased costs in fees, supplies, and insurance. New Projects with 2 2 'Tax Credit Incentive Program Funding: �ll311riclk II:�����ovling AIDA at Adorns Street Il:�����airlkIIet $�10,000 > Av✓u�cu� Il: u�gogcu.ncu�t g Advocacy$3,000 The total cost of the above projects is $75,000. The hard costs of these projects exceed the $37,500 which is the City's out of pocket cost because of the 75% credit through the Washington State Main Street Tax Credit Incentive Program. Add in the $75,000 for support of the year round work we do to preserve, promote, and enhance the historic commercial districts, and that gets to the City of Port Townsend's $150,000 TIP commitment for 2026 to our Main Street program. Goals of Proposed Scope The historic commercial districts are the anchor of Port Townsend and for every resident and visitor there is a unique tie to something found withing the blocks that make up Main Street. The work of PTMS is more important than ever In order to continue to support a thriving Uptown/Downtown core. Focusing on maintaining the rain gardens in both Uptown and Downtown that provide a welcoming backdrop to those who visit the district are foundational elements of our work. Also maintaining services like bird abatement organization and additional downtown restroom access during months of increased downtown visitation. New opportunities include additional build -out with a paver enhancement project to complete a phase of the development of Adams St Parklet that is shovel ready and will provide ADA access to an area of the park. Plus, listening to comments shared by the city team to begin building out strategic communication opportunities in the form of being a conduit to the business and building owners, gathering the information and providing the resources needed to thrive. All these projects round out areas of needed PTMS support in the districts. Addiitiionall Impact of IMain Stireet's Work The City's approval of this funding request also supports the wide variety of work PTMS does in the historic commercial districts. To date in 2025, PTMS has been an organization maintaining consistency through leadership change. It has allowed the organization to assess all aspects of the work we do, examine and celebrate the 40- year impact of the program, and determine what areas of focus are ahead. Through transition, PTMS has maintained its community events calendar, improved the raingardens, worked to listen and respond to our community, to name a few a few of the accomplishments this year. Next year, PTMS looks to roll out new quarterly business owner engagement forums, grow an even more robust information sharing channel through our twice monthly newsletters, promote a year-round economy through marketing and promotions, working with building owners to ensure occupancy, and collaborate with members and organizations to positively impact the quality of life in our community through supporting our vibrant commercial core. PTMS will be kicking off work on a three-year strategic outlook with a transformation strategy in early 2026 to ensure our work continues to have positive impacts on the community. Working to actively update our goals to align with current needs, deepen our relationships with stakeholders, and increase the impact of our work. PTMS values our work with the City and the opportunity to create projects with high impact. Thanks for consideration of the funding proposal. PTMS is committed to serving our community through our non-profit work, looking at new ways we can meet the current needs of our business community in a more multi -faceted approach, and appreciate the dedicated team of staff, board, and volunteers who take pride in our work. Ready for questions and discussion on how PTMS can support the City of Port Townsend in ensuring continued enhancement to our community. 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Approval of Bills, Claims and Warrants: Vouchers 178893 through 179100 in the amount of $1,208,224.58 Electronic Fund Transfers in the amount of $170,051.42 B. Approval of Minutes: January 20, 2026, February 2, 2026, February 9, 2026 C. Appointments/Reappointments: Civil Service Commission D. Council Committee Assignment: Housing Fund Board E. Resolution 26-005 Authorizing the City Manager to Negotiate and Execute Agreements for Services Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. 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U N N 0 N W° E W N E W° E c w C 3 O m U H U H U H U _ N U U m Q J N 6 Y CL O N T N U O N T N L N C O N N N L O O N O Q O Q H d Q N L O O Q Q J N O C O U J � O O U "6 N H � N N Q O N C O Q CN E C� E C m E N C � � N Q N L by N Q m O L Q J N C CN E N O C N H d O p S Q O N E N N E N Q a-+ �- a-+ �- Q > C N > H U H U 0 City0fPort Townsen' Agenda Bill: AB26-036 Meeting Date: April 6, 2026 Agenda Item: X.B ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Melody Sky Weaver, & Michael Todd Date Submitted: April 2, 2026 Department: Community Services Department Contact Phone: 360-344-3054 SUBJECT: Authorizing the City Manager to apply for a Library Capital Improvement Program Grant for 2027-2029 for the historic Pink House exterior restoration/improvements at the Port Townsend Public Library. CATEGORY: BUDGET IMPACT: Impact for 2027/2029 ❑ Consent ❑ Resolution Expenditure Amount: $150,000 0 Staff Report ❑ Ordinance Included in Budget? Yes 0 No❑ ❑ Contract Approval 0 Other: Discussion Item ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: Purpose: The Community Services Department is working on a holistic approach to City facilities, including addressing long-term deferred maintenance strategies. In 2025 we presented to the City Council about the establishment of an Equipment Repair and Replacement Fund (ER&R) and budgeted for the work in 2025 and 2026 to create the financial model to begin funding and saving for planned repairs and replacements for all City facilities. In addition to this work, the department is also exploring funding opportunities to complete the Library's high priority deferred maintenance and capital projects as there is a state grant for libraries that only occurs every two years with the state's biennium budget. After the completion of the award -winning Historic Preservation Award for the Pink House Wall Restoration project in 2019, the grant funded Library bathroom remodel and window upgrades in 2024, and the current grant funded installing of a retrofit HVAC scheduled for 2026 in the Library building and modernizing components of the Library's elevator, the Library's priority projects will be the exterior restoration of the Pink House building including siding, rebuilding the porch, new windows, a new roof with gutters, and new foundation. The Pink House exterior restoration is the last project on the Library's 15-year-old list of deferred maintenance projects to be completed. The Pink House is a critical asset to library operations that serve the needs of patrons of all ages. When the Pink House is open to the public, it is a free community meeting room hosting at least 10 community meetings a month from nonprofit boards meetings to community groups meetings for book clubs, play rehearsals, plant groups, classes and so much more. It is a vibrant and highly used space for our community. The main room is used for weekly story times, after school kid and teen programs, tech classes for adults and seniors, and many more classes promoting free access to lifelong learning. The small room is the beloved Friends of the Library Book Shop where they raise critical funding to support these ongoing programs and provide a well -used and beloved bookstore in Uptown. Upstairs provided much needed office space for librarians and the Friends of the Library. Having the Pink House closed due to concerns over the foundation has greatly impacted library work and the library's ability to offer classes, events, and free public meeting space for all ages. The good news is that this month the foundation will undergo temporary repairs to reopen the building. However, to address the long-term needs of the building, significant foundation and exterior work is needed. History: The Charles Pink House is a unique asset for the library. Constructed in 1868 in the Late Greek Revival style of architecture, it is one of the last remaining houses of its kind in the state. Built by Horace Tucker, who is known for building many of the oldest houses in Port Townsend, the house was purchased by Charles Pink in 1874. The house remained in the Pink family for the next 92 years. In the late 1880s the Pink family expanded the house, rebuilding the porch and adding Victorian bays. Near the turn of 20th century, the house was once again renovated, with the original pillars and front doors replaced by substitutes in the style of the Arts and Crafts movement that was popular at the time. These changes made the Pink House a unique building architecturally in Port Townsend. Because it was difficult to peg down as an example of a specific style, the house sat neglected for most of the latter half of the 20th century. The City of Port Townsend purchased the Pink House in 1981 for the purpose of serving as an expansion to the adjacent Carnegie Library. Because of difficult economic times, the City lacked the funds to rebuild the dilapidated structure. In exchange for a complete restoration of the building, the City gave a long term lease on the building to Little and Little Construction. After a massive renovation, the building was leased out until 2003 when the lease expired, the City regained control of the building. It then served as the administration house for the local fire department. The library took over the house in 2007 and uses it to supplement the Carnegie Library. First floor program and meeting spaces and second floor offices give the library needed flexibility in offering services to the public. Learn more on the Library's webs ite- ..............hsW t ublliiclliibrar .or /Iliibrar / a e/hiistor -. charlles-Mink-house Grant information: The Library Capital Improvement Program was created by the Legislature in their 2019 Regular Session to assist libraries operated by governmental units, as defined in , , \/ 712 0,1„Q., to acquire, construct, or rehabilitate their facilities. The Department of Commerce, in consultation with the Library Capital Improvement Program Committee, conducts a statewide competitive grant process to award up to $10 million. The maximum grant amount to any one project will not exceed $2 million. The program requires a 50% match of the total cost of the project. Priority is given to library facilities listed on local, state, or federal registers of historic places and those located in distressed or rural areas. This grant is only offered every two years. In 2022-2023 our Library received a $167,000 grant to support the window replacement and bathroom remodel and in 2024-2025 the Library received a $160,000 grant for the HVAC and Elevator Improvements/Repairs. Ihttp //rnrrnrrnr:. aurnurneirC :w :.gav/ u.uV uu.q-uii.fir .tiru .fairs/Vu it iry- u.t V-uurnpiraveurneu].t.- iro it urnl# text Tlhe%°20 e irtrrreu�t%20of%20C�o�rm�rmeirce%2C�%20uui wnru %°20ulot%20exceed%20%242 ......................................................................................................................................................................................................................................................................................................................... x........................................................................................................................................................ %20m� i!1 om. ................................................... Previous Investments: Over the last 15 years the former Library Foundation and current Port Townsend Library Friends and Foundation (the two nonprofit groups merged) have invested significant community dollars into this historic structure. The City has supported exterior site work with the Carnegie Stairs ($250,000 of City funds) and Pink House Wall Restoration project. Project and year Cost Funder Interior remodel 2011-2013 $83,000 Library Foundation Technology upgrades- $25,000 Library Foundation projector, sound system, DVD player for Pink House and Carnegie Room Pink House Historic Wall $47,500 Library Foundation Restoration and 2017- 2019 New carpet & blackout $9,300 Library Foundation blinds 2022 Meeting room furniture $7,500 Library Friends Grand total: $172,300 Budget: The cost estimates for total exterior restoration are around $662,000 which includes a generous contingency of 30% given current materials and construction escalations. Some numbers are firmer such as the siding, roofing, porch rebuild, while the windows and new foundation are more educated estimates. The City has several options for match for this project if successful: The grant is a 1.1 or 50% match so the City will need to budget for $331,000 for these projects. The City has time to plan and budget for the 2027- 2029 budgets for the project timeline. The City currently budgeted from REET $148,000 for the Pink House siding project in the 2026 approved budget. This project can be delayed if the grant is successful and those already budgeted funds can be saved for the match. The Friends of the Library have committed at least $100,000 for the Pink House project and will likely commit another $50,000 for the project. They are meeting on Aril 8t" to discuss pledging more support. The Library was given a donation for $40,000 that is currently in the Library's Fund Balance and can be used for a match for this project. The City Council may want to consider at least replacing the roof of the Pink House this year to stop the ongoing damage caused by a failing roof and gutter system to the siding and Foundation. However, that would mean another $50,000 would have to be budgeted from City funds or another funder sometime between 2027-2029. The Library Fund balance has established healthy reserves, and this could be a potential source of revenue. The longer these projects are delayed the higher the costs will be. When the exterior siding and gutter project was first proposed for the Library in 2013 the estimated cost was $50,000. Pink House estimated costs and funding sources: Project Cost 30% Contingency Total Cost Roof/gutters $38,990.00 $11,697.00 $50,687.00 Windows $85,000.00 $25,500.00 $110,500.00 Siding, Paint, Front Porch Rebuild $145,000.00 $43,500.00 $188,500.00 Lead Paint Abatement $65,000.00 $19,500.00 $84,500.00 Foundation Rebuild $175,000.00 $52,500.00 $227,500.00 Grand Total Budget: $661,687.00 Pink House estimated revenue sources: Funding Source Amount Friends of the Library $100,000-$150,000 Library Capital Grant $331,000 City of Port Townsend $148,000 Library Fund Donation $33,000 Grand Total Revenue: $616,000-$662,000 ATTACHMENTS: None CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to authorize the City Manager to apply for a Library Capital Improvement Program Grant for 2027-2029 for the historic Pink House exterior restoration/improvements at the Port Townsend Public Library. 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Yes ❑x No ❑ ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: Choose an item Cost Allocation Fund: 199 Community Services SUMMARY STATEMENT: The purpose of this action item is to review and approve the low bidder to perform the work to rebuild the Chetzemoka Kitchen Shelter Background: The kitchen shelter at Chetzemoka Park was originally closed to the public during the COVID19 pandemic. Following the reopening of park facilities, the structure remained closed due to concerns regarding its structural integrity. Initial evaluations from architects and engineers found that the shelter was unsafe and not constructed to a standard that would support needed repairs or upgrades. Based on these findings, City staff recommended that the structure be removed and replaced. In 2023, City Building Officials conducted a formal inspection confirming that the shelter constituted a hazard and was unsuitable for public use. This determination was documented and presented to the Historical Preservation Committee (HPC) at its March 5, 2024, meeting. After reviewing the inspection findings and proposed replacement plans, HPC recommended approval of demolition and reconstruction, with the condition that the new design preserves the historic Craftsman -style character of the original shelter. Throughout the planning process, City staff have provided ongoing updates to the Parks, Recreation, Trails, and Trees Advisory Board, the HPC, and the City Council. In fall 2025, the project was brought before the City Council to reject the single bid received at that time because the proposal significantly exceeded the allocated project budget. Following Council's direction, staff initiated a value engineering effort to reduce costs while maintaining essential design elements. In February 2026, after plan revisions received approval through the City's permitting process, the project was re -advertised for bids. In March 2026, the City received ten bids in response, representing a 900% increase in bidder participation compared to the previous solicitation. These results reflect improved bid competitiveness following value engineering and market conditions. PROJECT FUNDING & TIMELINE: The current estimate for completion of the project is $141,143.20 including a 10% construction contingency for change orders and is within the adopted budget. Budget and Accounting: Total Project Budget: $141,143.20 Contractor Bid Tax @ 9.4% Total Anderson Homes LLC $117,287.02 $11,024.98 $128,312.00 Project Timeline: • November 2025: Value engineering to reduce costs • January 2026: Rebid opening date • March 6th 2026: Bids Due • April 2026: Contract awarded and notice to proceed • May 2026: Anticipated Start of Construction • August 2026: Anticipated End of Construction 10 bids were received on Feb 27, 2026, with the Low Bidder being Anderson Homes Council Options: The City Council has the following options in response to the bids received. 1. Award the contract to Anderson Homes, the lowest responsive and responsible bidder. 2. Reject all bids and rebid the project. 3. Reject all bids and cancel the project Staff are recommending awarding project to Anderson Homes, given the favorable bid results and a competitive bidding climate. ATTACHMENTS: 1. Bid Tabulation 2. 2026 Capital Budget Sheet 3. Rendering of design CITY COUNCIL COMMITTEE RECOMMENDATON: N/A RECOMMENDED ACTION: Move to accept the bid from Anderson Homes for the Chetzemoka Picnic Shelter Rebuild in the amount of $128,312.00 ALTERNATIVES: X Take No Action X Refer to Committee X Refer to Staff El Postpone Action El Remove from Consent Agenda El Waive Council Rules and approve Ordinance El Other: I Bids Due 3.6.26 contlactor Bid Tax @ 9.4% Total Anderson Hoirnes ILLC $ 117,287.02 $ 11,024.98 $ 128,312.00 Bozco Construction $1 148,,10100.00 $ 13,,912.,00 $ 161,912,010 JI&A $ 180,530.16 $ 16,969.,84 $ 197,500.010 Porchtight ConstrUction $1 190,220.00 $ 17,880.,68, $ 2018,100,68 Capiitall IndustriaL $ 23,8,10100.00 $ 22,372.,00, $ 260,372.00 Kaplan IHomies, $1 243,,860.00 $ 22,922.,84 $ 2,66,78,2.84 Coastline IRo,ofing and Const., $ 282,5616.17 $ 26,561,22 $ 309,127,39 Interwest Construction INC $ 285,10,50.00 $ 26,794.,70 $ 311,844.70 Tikka Inc. $ 285,959.00 $ 26,880.,15, $ 312,83915 Nairdland Construction $1 292,5100.00 $ 27,49,5.,00 $ 319,995.010 Parks, 22 Banked Capacity Project Description The City'GOILincill allucated funding to sev,er,all parks project as part of the 2022 Banked Capacity (1property tax). The pr at Ghetzemoka Park, installation of Kiiosks at the City Parks and instaIl trail signs iidentffying the right of way, and instal dedicated to Chetzemoka Park also, will be applied to, the Ikiltehen shelter reconstrucfion. Revenue Revised Project 2026 Siuppfll Project Budget Budget 9124 Project Budget Project Budget Banked Capacity Kitchen Shelter 100,000 117,697 1091697 108,697 Kiosks Sigins 61,,000 5,2,334 52,,334 5,2,334 Bishop Playground 30,000 2 29,969 29,969 Donations - Kitchen Shelter 50,,000 5010,00 1 86,,000 8,6,000 Total Revenue 241,000 2501000 277,000 277',1000 Expense Project Budget Project Budget Project Budget Project Budget Design Engineering I Permitting lbish,op permit 3, GOO 1,159 1,15,8 kitchen shelter desigin and permits 28,842 uttitotal 3,000 1,15 30,000 ConstrucNon Kitchen Shelter 150,,000 16 1, 1 65 191,000 1,49,842 Kiosks Sigins 59,000 52,334 52,334 40,492 Bishop Playground 28,,500 29,969 29,,665 29,665 Subtotal 237,500 243,468 272,9919 219,999 Project Management Kitchen Shelter 2,,000 3, GOO 2,311 3,000 Kiosks Signs 1,000 10 106 106 Bishop Playground 500 426 426 426 subtotal 3,500 3,532 I. 2,8,43 %532 Project ronfingency 2 3,4 9 Eligible for 1% for the, Arts, NA per banked capacity restrictions iTotal Expense 241,000 25%,000 277,000 277!,0 ,0011 City0f Port ' m�10 Townsen Agenda Bill: AB26-038 Meeting Date: April 6, 2026 Agenda Item: X.D ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Laura Parsons, P.E. Civil Engineer III Date Submitted: April 1, 2026 Department: Engineering Contact Phone: 360-379-4432 SUBJECT: Bid Award for the Discovery Road Bicycle and Pedestrian Safety Improvements Project HSIP-7627(002) CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: $391,946.50 ❑x Staff Report ❑ Ordinance Included in Budget? Yes ❑x No ❑ ❑ Contract Approval ❑x Other: Contract Award ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: 305 CIP Street SUMMARY STATEMENT: In 2022, the City received federal grant funding through the Highway Safety Improvement Program (HSIP) for the Discovery Road Bicycle and Pedestrian Safety Improvements Project. This project will construct pedestrian and bicycle safety improvements at the intersection of 19t" and Sheridan Street, as well as west along Discovery Road, adjacent to Salish Coast Elementary School. Additionally, road surface repairs will be made and the newly paved areas will be re -striped. At the February 3, 2025 City Council regular business meeting, Agenda Bill AB25-015 reviewed the design evaluation process, ultimately recommending a standard intersection design with safety enhancements. City Council provided a motion to support proceeding with this design. The project concept image is provided as an attachment to this agenda bill for reference. This project's HSIP funding is administered via WSDOT Local Programs, through the 2022 City Safety Selections Federal Funding. Construction authorization from WSDOT Local Programs was received on January 15, 2026. The City advertised for construction bids on February 25, 2026 and March 4, 2026. Bids were opening on Thursday March 19, 2026, with four bids being received. A bid tabulation which summarizes the bids is provided as an attachment to this agenda bill. Flowline LLP, out of Spanaway, Washington was found to be the apparent low bidder at the bid opening. As part of standard post bid opening review, it was noted that several bids had math errors which were corrected according to the bidding specifications. This is not uncommon. The math errors did not change the outcome of the bid opening, with Flowline still being the lowest bidder. Flowline's bid was also reviewed in accordance with mandatory bidder responsibility criteria outlined in RCW 39.04.350(1). Supplemental Bidder Criteria was received and reviewed as well. Flowline's documents were found to be compliant, and staff recommends waiving the irregularities and awarding the project to Flowline with a low bid of $391,946.50. The budget for this project is summarized in the below 2026 Capital Budget Sheet. The project budget includes $63,534.50 in construction contingency. As can be noted, the project budget has increased over time with additional funding support coming from Real Estate Excise Tax (REET), HSIP, and the Transportation Benefit District (TBD). During design, additional funding needs were identified due to rising material/construction cost, addressing ADA requirements, and augmenting safety features that better serve all modes of transportation passing through this busy, key Port Townsend intersection. Project Budget Revenue Revised! Project IRevi edl Project CN Project Budget Hudget 10124 Budget 14251 Autboilirnttonl Federal Grant FLInds (HSIIP) f 233,000 233,000 f 233.00,0 233.000 Real Estate (Excise Tax 15,000 35,OW 35,000 35,000 Addiffaiial Federal Funds 501'00O1 ' 50,000 4111.0,00 Transportation Benefit Dtstrlict 200„000 1145„000 Total Revenue 248,000 318,0+00 518„0+00 824„000 Elrpen'e Project Budget Project Budget Proje t Budget Project Budget 13esiign IEngineeriing I IPerrrrittiing Deslgn'ConKiltal'It 1 22,000 ,{)00 1 60,000 1 72,494 Misc. ulbtotM 22,000 40„0100 601,0010, 72,494 Construction Construction Gantract 170.850 391,947 C11 Enrgllneering f 30„150 � 66„025 onGstruu!ctIon - Discovery IRcao-d Repair dContract 1 160„000 � 30,000 Construction - Disflcvery Road Chip Sash Foilowing year ff 100„000 u btDtal - - I 361,,00101 I 587,972 Project Maningernent Staff adnitlldlll5tq tllflnl nN©i-eillglbl'e grant costs 15„00'0 25,000 25.00'0 50.000 Staff adminiistratil©n ellilgilblle grant costs 1EI„ 1O,00g 50„000 ulbtu N 15,000 35„0100 35,,00181 100,000 Project Contingency 110„000 4,2,u300 42,000 ', 63,535 EligiiEle for 1%tna the Arts NIA T11C1 Used for staff a �dmilnis,tration Total Expense 4'7,00+0 117,0+00 498,000 024,,0000 Construction of this project will begin in late June 2026, after the end of the school year, as this intersection is even more heavily used when school is in session due to its proximity to Salish Coast Elementary School. Noting that construction schedules are often subject to change, the contract documents identify forty (40) working days, with a currently anticipated completion in late August 2026. ATTACHMENTS: Concept Design, Bid Tabulation CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to award the construction contract for the Discovery Road Bicycle and Pedestrian Safety Improvements Project to the lowest responsive bidder, Flowline LLP, and to authorize the City Manager to sign all necessary documents and contracts to complete the project. ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: O O cD Ln O W O U) 0 1--RI1S NV(MJ:3HS -------------------- r7 1 IV N MA %/ F 7/, foo r rr„ h U w O w o. N r Z w w O w o. w U. 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OU) U a) y 2 O Uc UO ' � �EL L U m '>C n O � °L�U•Q •L ' '�C o CO O O CO O • �O N Fa � L) Q Ja- W U a- C> U U) C> a a- O O O O O O O O O O O O cn Lf) O O O O O O O cn O O cn O O O O O O O CV C" 7 O O O cn cn cn CD N M ct• w M M M M CG I M I — ct• CD W co M ct• N co m LO 00 00 e- d- ct' ct' 00 e- LO CD r- 00 N N N N LO CD r. e- e- N N N N N N G G G G G G G G G G G co U CO Co -U L co L L CO c L N L c U -U L l� � U ' O U nduct a community -wide survey to better understand community needs and gain insights into the diversity of opinions. V Elm SI 2025 STATUS :mental coordination edures, configuration, Smartgov efficiency, leveraging 2025 videos and business license integration Update -y Simplification lete) i toward agency accreditation /Land Use Elements of the Comprehensive Plan, including: �elop, implement, and refine code and comp plan changes to help unlock and inspire affordable, dense, quality infill development community's vision for Evans Vista neighborhood and deliver infrastructure to make it development -ready - Evans Vista phased development nder new Comp Plan zoning presented in the housing white paper for implementation - fee structures, incentives, infrastructure extensions lopment - Housing Infill lopment - Improve commercial intensity, beyond commercial corner store/shop allowances in residential zones �r Study - next steps - Interlocal Agreement with Jeff. Co. reline Master Program comments and make directive changes after state process using Property Inventory ordinate with providers and partners on the unhoused population's needs rtation Element of the Comprehensive Plan, including: dabout funding/grant application �ments concept plans (like Washington St, San Juan/F, Hastings, Admiralty) - Multimodal Arterial Cohesive Study Pacific/Olympic Discovery Trail - in -town connection to Fort Worden and land purchase near Eaglemount (City Lake) -hools Neighborhood Connections Study Plan Update - Parks, Facilities, Right of way ine Engineering Design Standards :e Street project (Harrison to Walker) 5 chip seal program (Sheridan and Monroe) Benefit District implementation, including street repair, grants, active transportation corporate active transportation plan, multimodal arterial street, RAISE grant, and saferoute planning studies) ement of the Comprehensive Plan and Facilities/Library/Arts & Culture (Community Services) Initiatives: Cappy's Preservation Implementation, 80 acres facilities, library, and arts & culture funding needs and prioritize future phased investments Facilities program and budget nenting Library's Level of Service Plan Option #2 pproach to deer management in partnership with State Fish & Wildlife campus — lease is up for renewal in 2032, reinvestment vs. other options grant application for 2027 cycle )layground ration/LOA with Jefferson County to increase recreation opportunities c art and consider links to functional plans, maintenance planning for artworks, infusion of art into infrastructure projects ementation rks facility design ter planning of golf park in collaboration with Friends of the Golf Park ter planning of west -side park es - City Hall HVAC, Mountain View HVAC/parking, Library HVAC, City Hall and Library elevators (subject to budget and grants) r Program, street ends, loop trail) - Kah Tai Restrooms, Chetzemoka kitchen shelter, demolition of Golden Age Club and Parks house (subject to budget) h related agencies to stabilize and plan for the sustainable future of Fort Worden State Park 1% for the Arts support for all City public works projects in line with the City Code (complete); implement program V V V IIIIII V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V diver on Water/Sewer/Storm Priorities: > Plan Update (2027-2033) - Big effort incorporating all new plans rvoir Recoating Design V trategic and sustainable value from the City organization to the community by developing and leveraging partnerships, enhancing staff and providing clear direction, nurturing deep community participation and engagement and ensuring continuous delivery of quality services i Councilmembers and stewardship of their political/policy decision -making r leadership and partnership with other agencies and organizations the City to the visiting public working with LTAC, contractors, and community partners to do so ind budget development; integration and oversight of City operations with internal and external policies, regulations and requirements sigh -performance, people -centered City culture; coaching, mentoring and performance evaluation of employees jects, communication, engagement and advocacy on behalf of the City and community gent and customer facing permitting, code enforcement, current and long-term planning to promote opportunity and quality of life in Port & Community Development) fiance review and approval ;pections nning planning I desired financial reporting and practices, steward preparation and collective oversight of balanced funds and budgets and information ensure the success of all departmental and organizational activities. (Finance & Technology Services) d financial reporting and financial analysis ig and cashiering for variety of City services orting and municipal audits sense compliance and business and occupation tax reporting administration and accounts payable d front desk internal and external service via the Public Experience Liaisons ant of city Investment and debt according to government regulations )nsibility and management of city resources i Technology — including network security and user support ?e Schedules pity through reading, learning, connection and creativity (Library) - note transition to CSD w integrated statement to come material circulation including curbside delivery, databases, a -books and e-audiobooks, children's web resources, grab bags, interlibrary loan nd events, including virtual programming, youth programming and adult programming ise to patron requests and associated services ?chnology iip with our community to provide a safe and compassionate environment while reducing crime and the fear of crime (Police) response stigation preparedness wests lopment and refinement innovative solutions that allow the City to make a positive leap forward in developing and investing in people and performance, driving ccellence, continuous improvement, and accountability (People & Performance/HR) and coordination of the City-wide equity, diversity and inclusion (EDI) work it, including development of a recruitment strategy, targeted departmental approaches ract negotiations including a retention strategy and employee recognition program ;e evaluation ?ngagement, including development and delivery of an engagement survey and accompanying manager follow up approach nentoring and training programs -related policy development, application and evaluation reliable infrastructure that underpin a healthy social, environmental and economic fabric and success cf Port Townsend and our community itenance, operations and programming r operation and maintenance r collections and treatment and compost nt oftrash collection and recycling 3tertreatment and distribution major capital projects, and development review for infrastructure extension Lion engineering (Non -motorized, traffic, accident analysis, grant writing) y management including urban forestry tions, maintenance, and replacement nt of nnrLc nnrl trnik cto $$$ or