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HomeMy WebLinkAbout042026 City Council Business Meeting Packet PORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. April 20, 2026 Attend in person or virtually via computer or tablet at https://zoom.us/j/98187633367 enter the Webinar ID 98187633367 Phone only (muted - listen-only mode) United States: Local Dial In – 1(253)215- 8782,,98187633367# Submit public comment to be included in the meeting record to: https://publiccomment.fillout.com/cityofpt If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clerksupport@cityofpt.us I.Call to Order II.Roll Call III.Changes to the Agenda IV.Proclamation(s) or Special Presentation(s) A. Parks Appreciation Week and National Library Week Proclamation 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. 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: (None) C. Appointments/Reappointments: Lodging Tax Advisory Committee, Historic Preservation Committee VIII. Old Business (None) IX. New Business A. Resolution 26-006 Setting a Public Hearing Regarding the Vacation of Street Right of Way in Cappy’s Trails Proposed Action: Move to approve Resolution 26-006 Setting a Public Hearing Regarding the Vacation of Street Right of Way in Cappy’s Trails i.Staff presentation and Council questions ii.Public Comment iii. Council deliberation and action B. Planning Commission Recommendation to Add 2026 Annual Comprehensive Plan and Development Regulations, 2026 PCD Workplan Priorities Proposed Action: 1) Take No Action: No motion is required. By taking no action, the City would not move forward with potentially revising the Comprehensive Plan relating to the Planning Commission's recommendation. No Council action allows staff to proceed with: • Statutorily required items relating to code updates and implementation • MFTE residential target area expansion (the 2026 workplan already included an overhaul of MFTE program) • 2026 budgeted work plan items, as supported by available staff capacity and workload---- 2) Alternative: Motion to make an exception to the closed suggested annual amendment process pursuant to PTMC 20.04.030A along with any applicable findings that to wait until the next suggested amendment cycle would be detrimental to the public's interests. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action C. Ordinance 3364 Adopting 2026 Supplemental Budget Appropriations Proposed Action: Move to approve first ready of Ordinance 3364 Adopting 2026 Supplemental Budget Appropriations i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action D. Transportation Benefit District (TBD) Annual Report; 2026 TBD Fund Update; Project Contract Authorization; and TBD Fund Summary and Real Estate Excise Tax Budget Amendment Request Proposed Action: 1. Motion to authorize the City Manager to execute all contracts to accomplish the 2026 street maintenance work. 2.Motion to allocate $268,000 of Real Estate Excise Tax to the 2026 street maintenance work budget. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action E. OGWS Fire Hydrant Connections Proposed Action: Move to authorize the City Manager to enter into fire hydrant connection agreements with property owners i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action X.Presiding Officer’s Report XI.Suggestions for Future Agendas XII.Comments from Council XIII.Executive Session –Pursuant to RCW 42.30.110 (1)(g) Performance of a public employee (Approximately 45 minutes) Potential Action following executive session XIV.Adjourn P R O C L A M A T I O N WHEREAS, the Community Services Department oversees parks and libraries and through wonderful serendipity National Parks Week April 18–26, 2026 and National Library Week April 19-25, 2026intersect; and WHEREAS, public parks and libraries are two of America’s greatest ideas and are essential public resources that enrich the quality of life for all community members by providing welcoming, inclusive spaces for learning, recreation, connection, personal well-being, and places to play and find joy; and WHEREAS, libraries provide opportunities for people of all ages to pursue their passions, engage in lifelong learning, access information and technology, and develop literacy and workforce skills that support personal success and community prosperity; and WHEREAS, parks and recreation promote physical activity, mental well-being, and time spent in nature, improving cognitive performance, reducing stress, and supporting overall health for individuals and families; and WHEREAS, libraries and parks have long served as trusted, accessible institutions for all members of the community regardless of race, ethnicity, creed, ability, sexual orientation, gender identity, or socio-economic status, helping to ensure equitable access to resources and opportunities; and WHEREAS, libraries and parks strengthen social connection and civic life by bringing people together for programs, events, and shared experiences that foster understanding, engagement, lifelong learning, and a strong sense of community belonging; and WHEREAS, libraries adapt to the evolving needs of their communities by expanding collections, services, programs, and partnerships, while parks and recreation provide dynamic spaces for youth development, environmental education, sports, and afterschool programming that support healthy childhood development; and WHEREAS, libraries and parks contribute significantly to economic vitality by supporting job seekers, entrepreneurs, tourism, local businesses, and workforce readiness, increasing property values, and enhancing the overall attractiveness of communities as places to live, work, and visit; and WHEREAS, parks, natural areas, and outdoor recreation spaces protect environmental health, enhance ecological stewardship, and provide critical, resilient infrastructure that helps communities respond to climate change and natural disasters; and WHEREAS, libraries serve as cornerstones of democracy by promoting the free exchange of information and ideas, while parks provide shared public spaces that encourage civic pride, volunteerism, and community resilience; and P R O C L A M A T I O N WHEREAS, National Library Week and National Parks Week recognize and celebrate the vital role libraries, parks, librarians, and parks and recreation professionals play in strengthening communities nationwide; NOW, THEREFORE, I,Amy Howard, Mayor of Port Townsend, Washington, do hereby proclaim April 19-27 as ‘ Parks and Libraries Week in Port Townsend, and I call upon residents, educators, community partners, and visitors to celebrate, support, and utilize our parks and libraries as essential public spaces that enhance health, learning, equity, and quality of life for present and future generations. _____________________________ Amy Howard, Mayor Agenda Bill: AB26-041 Meeting Date: April 20, 2026 Agenda Item: Consent VII. C Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Mayor Howard Date Submitted: April 8, 2026 Department: Mayor Contact Phone: 379-2980 SUBJECT: Reappointment of Sarah Copley(At- Large Position # 2, Term Expires May 1, 2029) to the Lodging Tax Advisory Committee Reappointment of Kelly Olson (Non-Voting Position # 13, Term Expires May 1, 2029 Representing Jefferson Transit Authority) to the Lodging Tax Advisory Committee Appointment of Dave Pitkethly (Position #7, Term Expires May 1, 2028) to the Historic Preservation Committee CATEGORY: BUDGET IMPACT: n/a Consent Resolution Expenditure Amount: $ Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: 010-011 GF - Mayor & Council SUMMARY STATEMENT: The Mayor is recommending the following appointments: Reappointment of Sarah Copley(At- Large Position # 2, Term Expires May 1, 2029) to the Lodging Tax Advisory Committee Reappointment of Kelly Olson (Non-Voting Position # 13, Term Expires May 1, 2029 Representing Jefferson Transit Authority) to the Lodging Tax Advisory Committee Appointment of Dave Pitkethly (Position #7, Term Expires May 1, 2028) to the Historic Preservation Committee 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 represents unanimous approval of the appointments. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: PARKS, REC, TREES & TRAILS ADVISORY BOARD (5-7)HISTORIC PRESERVATION COMMITTEE (5-7) Council Liaison: Monica MickHagerCouncil Liaison: Monica MickHager Meets Bi-monthly 4:30pm 4th Tuesday at City Hall Meets 3:00pm 1st Tuesday at City Hall Pos.Name & ExperienceExp.Pos.NameExp. Matt Miner5/1/28Kathleen Knoblock5/1/26 11 VACANT5/1/26Michael D'Alessandro5/1/26 2 2 Richard Hefley 5/1/27Monica Mader5/1/26 33 4 Pamela Adams5/1/28Walt Galitzki5/1/27 4 Rebecca Kimball5/1/28Zhenya Lavy5/1/28 55 VACANT5/1/27Craig Britton, Chair 5/1/28 66 Deborah Jahnke, Chair5/1/27VACANT5/1/25 77 Nicole Karn5/1/28 8 Jeffrey Taylor 5/1/28 9 LODGING TAX ADVISORY COMMITTEE (11 voting)ARTS COMMISSION (9 max.) Council Liaison: NoneCouncil Liaison: Fred Obee Meets 3:00pm quarterly 2nd Tuesday at City HallMeets 3:00pm 1st Wednesday at City Hall Pos.Name & RoleExp.Pos.NameExp. Owen Rowe, Chair (Elected Official)N/ASimon Lynge5/1/26 11 Sarah Copley (At Large Position)5/1/26Alexis Arrabito5/1/26 22 Cindy Finnie (At Large Position)5/1/285/1/26 Melanie Muszynski 33 VACANT (Recipient)5/1/25Heidi Tullman 5/1/27 44 VACANT (Recipient)5/1/27Joshua Saunders5/1/28 55 Danielle McClelland (Recipient)5/1/28 6 Sheena Uritz5/1/28 6 Denise Winter (Recipient)5/1/28Chrstine WalshRogers5/1/27 77 VACANT (Collector)5/1/22Dan Groussman5/1/28 88 Kate Philbrick (Collector)5/1/28Doug Caskey 5/1/27 99 VACANT (Collector)5/1/26 10 VACANT (Collector)5/1/24 LIBRARY ADVISORY BOARD (5-7) 11 Council Liaison: David Faber Main Street Designee (Nonvoting)5/1/27 12 Jefferson Transit Authority Kelly Olson (Nonvoting)5/1/26 13 Meets Bi-monthly 1:00pm 2nd Tuesday at the LLC Pos.NameExp. 14 VACANT (Nonvoting)5/1/20 1 Pamela Adams 5/1/28 FINANCIAL SUSTAINABILITY TASK FORCE Kathleen Hawn5/1/27 2 Council Liaison: None3 Susan Ferentinos5/1/27 TBD Diane Walker5/1/26 4 Pos.NameExp. Alyssa Fuehrer5/1/26 5 Catharine RobinsonN/ADiana Grunow 5/1/26 16 Earll MurmanN/A 7 David Tolmie5/1/28 2 John NowakN/A 3 Richard JahnkeN/A 4 VACANTN/A 5 VACANTN/A 6 VACANTN/A 7 VACANTN/A 8 PEG ACCESS COORDINATING COMMITTEE (8)PLANNING COMMISSION (7) Meets 3:30pm 2nd Tuesday at the Gael Stuart BuildingMeets 6:30pm 2nd & 4th Thursday at City Hall Pos.NameExp. Name _______, City Council (Chair)Samantha Bair Jones, Chair 12/31/27 1 Joanna Sanders, City ClerkStephen Mader 12/31/26 2 Melody Eisler, Library DirectorRick Jahnke12/31/27 3 John Polm, School District SuperintendentViki Sonntag12/31/26 4 ________, School District Video InstructorCorrina Coorrsen12/31/28 5 Richard Durr, School District RepresentativeDylan Quarles12/31/28 6 VACANT, Video ProfessionalAndreas Andreadis12/31/27 7 _____________, Citizen Representative VACANT, Student Representative CIVIL SERVICE COMMISSION (3) VACANT Producers Group Representative (Optional)Meets as needed Pos.NameExp. VACANT Education Group Representative (Optional) Darryl Elmore 12/31/25 1 CLIMATE ACTION COMMITTEE (15) David Ehnebuske12/31/27 2 Meets bi-monthly 3:00 p.m. on 2nd Tuesday Richard Sussman 12/31/27 3 Exp. Pos.Name FORT WORDEN PDA (9-11) N/A 1 Jefferson County BoCC (Heather Dudley-Nollette) N/A Council Liaison: Libby Wennstrom 2 City Council (Owen Rowe) Meets at Fort Worden Commons B N/A 3 JeffPUD (Jeff Randall) Pos.NameExp. N/A Jefferson County Public Health (Laura Tucker) 4 N/ABrad Mace10/24/25 5 Jefferson Healthcare (Kees Kolff)1 N/ATracy Garrett 10/24/25 6 Jeff. Transit (Nicole Gauthier/Amy Hall)2 N/ADavid King10/24/26 7 Port of PT ( Carol Hasse/Eric Toews)3 N/AVACANT10/24/26 8 PT Paper Corp. (Michael Clea)4 12/31/26John Begley10/24/24 9 Cindy Jayne - Chair 5 12/31/28Steve Dowdell 10/24/24 10 Crystie Kisler - At Large 6 ` 12/31/28VACANT 10/24/24 11 David Wilkinson- At Large 7 12/31/27 12 Jaime Duyck- At Large 8 VACANT10/24/22 12/31/2710/24/25 13 Krista Meyers - At Large 9 12/31/2610/24/25 14 Kate Chadwick (Policy)- At Large 10 Dave Seabrook- At Large 12/31/2710/24/25 1511 EQUITY, ACCESS, AND RIGHTS ADVISORY BOARD Council Liaison: Amy Howard Meets 2nd Thursday at 12:30 at Council Chambers Pos.NameExp. VACANT 5/1/25 1 Gabrielle Vanwert5/1/26 2 Julia Cochrane5/1/27 3 Amber Kent 5/1/28 4 Aimee Krouskop5/1/26 5 6 Rachael Nutting5/1/27 VACANT 5/1/25 7 5/1/26 Devin González 8 Francisca Ramirez Aquino5/1/27 9 PORT TOWNSEND CITY COUNCIL CONSENT AGENDA April 20, 2026 A. Approval of Bills, Claims and Warrants: Vouchers 179101 through 179213 in the amount of $272,992.11 Electronic Fund Transfers in the amount of $541,113.49 B. Approval of Minutes: None C. Appointments/Reappointments: Lodging Tax Advisory Committee, Historic Preservation Committee Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). Agenda Bill AB26-042 Meeting Date: April 20, 2026 Agenda Item: IX.A Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Steve King, PW Director Date Submitted: April 15, 2026 Department: Public Works Contact Phone: 360-379-5090 SUBJECT: Resolution 26-006 Setting a Public Hearing Regarding the Vacation of Street Right of Way in Cappy’s Trails CATEGORY: BUDGET IMPACT:N/A Consent Resolution Expenditure Amount: $ Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: The Jefferson Land Trust(JLT) and City of Port Townsend have had a long partnership history to secure and preserve land in the area of Cappy’s Trails. The 2025 Comprehensive Plan formally established a boundary of a future park based on earlier work. JLT desires to apply for grant funding to continue to purchase property within the park boundary as illustrated in the Comprehensive Plan. Within the park boundary and near a couple of parcels in wetlands nearby, the City and JTL own property on both sides of historically platted rights of way. These rights of way create a fractured ownership pattern. The City can vacate these rights of way for the JLT to use as match for grant funding which allows locally generated dollars to go further in the purchase of property to support the future park. The right of way vacation process is essentially a three-step process as: 1. First, the City Council sets a public hearing as required by RCW 35.79.030 and Port Townsend Municipal Code (PTMC) 12.20.070. 2. Second, the City Council holds a public hearing and reviews staff analysis of compliance with the comprehensive plans as well as other plans and needs of the City, consistent with PTMC 12.20.060. At this hearing, the Council may choose to establish conditions of approval such as surveys, deed restrictions, etc. 3. Once the conditions of approval have been met, the Council will be presented with an ordinance to finalize the right of way vacation. This right of way vacation request involves rights of way sandwiched between JLT and City parcels, as illustrated in the map. This right of way area constitutes approximately 28 acres. City staff will fully review the proposed right of way vacation under PTMC 12.20.060 prior to Council action. PTMC 12.20.090 requires compensation for the value of the right of way and authorizes City to accept a land swap for the City’s compensation. The land swaps value can include intangible values as outlined in the resolution recitals. Given the City and JLT’s mutual goals, a number of key principles have been discussed: 1. The granting agency requires full appraisals; however, the City does not require a full appraisal as qualified City staff member can establish the value under PTMC 12.20.100. 2. The goal for this project is a land swap to meet the PTMC requirements and be in furtherance of the Comprehensive Plan. Staff anticipates that the land swap would potentially include a restrictive covenant in favor of the City as the real estate instrument to meet the City’s compensation requirements under PTMC 12.20.090. Note that the Recreation and Conservation Office (RCO) will hold the ultimate conservation covenant, as a requirement of their grant. 3. There may be some easements retained by the City such as for the existing water and sewer lines. 4. There will be continued stewardship of the trail system and preservation of habitat consistent with the Quimper Wildlife Corridor Plan 5. Property purchase will be inside the City’s future park boundary. 6. The City and JLT will continue to have access to their respective properties 7. Vacation of right of way is usually at the center of the street and the half right of way returns to the ownership of the abutting property owner. Vacation of right of way removes public access for the development of roads; however, the parties agree that stewardship of the trail system is a priority for public access to all lands held by the City and JLT. Staff recommends proceeding with the vacation process in order to support the procurement of grant resources to further preserve Cappy’s Trails and the future park. ATTACHMENTS: Resolution 26-006 CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve Resolution 26-006 Setting a Public Hearing Regarding the Vacation of Street Right of Way in Cappy’s Trails ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: RESOLUTION NO. 26-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, SETTING A PUBLIC HEARING REGARDING THE VACATION OF STREET RIGHT OF WAY IN CAPPY’S TRAILS WHEREAS, the Port Townsend City Council adopted the 2025 Comprehensive Plan Periodic Update on December 15, 2025; and, WHEREAS,the Comprehensive Plan includes Cappy’s Trails as a Future Park; and, WHEREAS,the City and Jefferson Land Trust have partnered to preserve Cappy’s Trails including the development of the 2008 Quimper Wildlife Corridor Plan; and, WHEREAS, the City Council supports the Jefferson Land Trust in the application for grant funding to secure additional privately held properties in the Cappy’s Future Park designated area; and, WHEREAS, approximately 28 acres of right of way is eligible for vacating with the City and/or Land Trust owning property on both sides of the right of way; and, WHEREAS,based on years of planning, the right of ways have been deemed not necessary for the City; and, WHEREAS, the vacation of right of way can be used as grant match to leverage funding to further purchase privately held property; and, WHEREAS, Port Townsend Municipal Code (PTMC) 12.20.090 authorizes the City to receive interest in real property in exchange for the value of the vacated right of way; and WHEREAS, the value received by the City for the vacated right of way may include intangible values or benefits received by the City through implementation of Comprehensive Plan goals and policies or interest in real property for stormwater retention and control purposes, which includes frequently flooded areas, wetland areas, natural drainage corridors, and areas which may serve local or regional stormwater purposes; and, WHEREAS,the under PTMC 12.20.100(A), the City Council may waive the requirements for an appraisal; and, WHEREAS, pursuant to PTMC 12.20.090(B), the City Council has determined that an appraisal of the proposed right of wayvacation is not needed as qualified City Public Works staff will provide a written determination that the value of the real property interest to be received is at least equal to or greater than the value of the right of way that may be vacated; and, WHEREAS, the City Council has determined that waiving application, petition, and other City fees associated with this proposed right of way vacation is in the best interest of the City due to the public benefit received and therefore, waives all application, petition and other City fees associated with this proposed right of way vacation; and, WHEREAS, the vacated right of way will return to exclusive ownership of the adjoining property owner and be subject to deed restrictions for open space as required by the Resource and Conservation Office; and, WHEREAS, PTMC 12.20.070 requires that prior to vacating any public right of way, the City fix a time for a public hearing by resolution; and, WHEREAS, the public hearing must be not more than sixty or less than twenty days from the resolution fixing the hearing and June 15, 2026 is less than sixty but more than twenty days from April 20, 2026; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend to hold a public hearing on June 15, 2026 on or about 6:00 pm regarding the proposed right of way vacation adjoining properties listed in Exhibit A and illustrated in Exhibit B for the purpose of open space preservation and parks use. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 20th day of April 2026. ______________________________ Amy Howard Mayor Attest: ___________________________ Alyssa Rodrigues City Clerk Exhibit A (Adjoining Property Owner Parcel List) Parcel NumberOwner Parcel NumberOwner 946500201JEFFERSON LAND TRUST 101345009CITY OF PORT TOWNSEND 946500301JEFFERSON LAND TRUST 951900003CITY OF PORT TOWNSEND 946500401JEFFERSON LAND TRUST 951900304CITY OF PORT TOWNSEND 946500501JEFFERSON LAND TRUST 951900309CITY OF PORT TOWNSEND 946500601JEFFERSON LAND TRUST 951900406CITY OF PORT TOWNSEND 946500701JEFFERSON LAND TRUST 951900407CITY OF PORT TOWNSEND 946500801JEFFERSON LAND TRUST 951901101CITY OF PORT TOWNSEND 946500901JEFFERSON LAND TRUST 951901102CITY OF PORT TOWNSEND 951900101JEFFERSON LAND TRUST 951901103CITY OF PORT TOWNSEND 951900102JEFFERSON LAND TRUST 951901105CITY OF PORT TOWNSEND 951900307JEFFERSON LAND TRUST 951901117CITY OF PORT TOWNSEND 951900308JEFFERSON LAND TRUST 951901119CITY OF PORT TOWNSEND 951900401JEFFERSON LAND TRUST 951901401CITY OF PORT TOWNSEND 951900402JEFFERSON LAND TRUST 951901403CITY OF PORT TOWNSEND 951900403JEFFERSON LAND TRUST 951901801CITY OF PORT TOWNSEND 951900405JEFFERSON LAND TRUST 951901803CITY OF PORT TOWNSEND 951900501JEFFERSON LAND TRUST 951901804CITY OF PORT TOWNSEND 951900503JEFFERSON LAND TRUST 951901816CITY OF PORT TOWNSEND 951900504JEFFERSON LAND TRUST 951901901CITY OF PORT TOWNSEND 951900507JEFFERSON LAND TRUST 951901903CITY OF PORT TOWNSEND 951900509JEFFERSON LAND TRUST 951901905CITY OF PORT TOWNSEND 951900601JEFFERSON LAND TRUST 951901907CITY OF PORT TOWNSEND 951900602JEFFERSON LAND TRUST 951901909CITY OF PORT TOWNSEND 951900603JEFFERSON LAND TRUST 951901911CITY OF PORT TOWNSEND 951900604JEFFERSON LAND TRUST 951901913CITY OF PORT TOWNSEND 951900605JEFFERSON LAND TRUST 951901915CITY OF PORT TOWNSEND 951900703JEFFERSON LAND TRUST 951901917CITY OF PORT TOWNSEND 951900704JEFFERSON LAND TRUST 951901919CITY OF PORT TOWNSEND 951900705JEFFERSON LAND TRUST 951902003CITY OF PORT TOWNSEND 951900706JEFFERSON LAND TRUST 951902004CITY OF PORT TOWNSEND 951900707JEFFERSON LAND TRUST 951902005CITY OF PORT TOWNSEND 951900709JEFFERSON LAND TRUST 951902009CITY OF PORT TOWNSEND 951900801JEFFERSON LAND TRUST 951902010CITY OF PORT TOWNSEND 951900802JEFFERSON LAND TRUST 951902011CITY OF PORT TOWNSEND 951900803JEFFERSON LAND TRUST 951902012CITY OF PORT TOWNSEND 951900804JEFFERSON LAND TRUST 951902101CITY OF PORT TOWNSEND951900806JEFFERSON LAND TRUST 951900807JEFFERSON LAND TRUST 951902102CITY OF PORT TOWNSEND 951900808JEFFERSON LAND TRUST 951902103CITY OF PORT TOWNSEND 951900810JEFFERSON LAND TRUST 951902104CITY OF PORT TOWNSEND 951900901JEFFERSON LAND TRUST 951902201CITY OF PORT TOWNSEND 951900903JEFFERSON LAND TRUST 951902202CITY OF PORT TOWNSEND 951900909JEFFERSON LAND TRUST 951902203CITY OF PORT TOWNSEND 951900911JEFFERSON LAND TRUST 951902204CITY OF PORT TOWNSEND 951900914JEFFERSON LAND TRUST 951902205CITY OF PORT TOWNSEND 951901104JEFFERSON LAND TRUST 951902303CITY OF PORT TOWNSEND 951901315JEFFERSON LAND TRUST 951902401CITY OF PORT TOWNSEND 951901402JEFFERSON LAND TRUST 951902402CITY OF PORT TOWNSEND 951901509JEFFERSON LAND TRUST 951902501CITY OF PORT TOWNSEND 951901601JEFFERSON LAND TRUST 951902502CITY OF PORT TOWNSEND 951901603JEFFERSON LAND TRUST 951902602CITY OF PORT TOWNSEND 951901604JEFFERSON LAND TRUST 951902801CITY OF PORT TOWNSEND 951901701JEFFERSON LAND TRUST 951902802CITY OF PORT TOWNSEND 951901705JEFFERSON LAND TRUST 951902803CITY OF PORT TOWNSEND 951902001JEFFERSON LAND TRUST 951903301CITY OF PORT TOWNSEND 951902002JEFFERSON LAND TRUST 951903302CITY OF PORT TOWNSEND 951902305JEFFERSON LAND TRUST 951903303CITY OF PORT TOWNSEND 951903304JEFFERSON LAND TRUST 951903305CITY OF PORT TOWNSEND 951903422JEFFERSON LAND TRUST 951903404CITY OF PORT TOWNSEND 951903423JEFFERSON LAND TRUST 951904201CITY OF PORT TOWNSEND 951903501JEFFERSON LAND TRUST 951904603CITY OF PORT TOWNSEND 951909401JEFFERSON LAND TRUST 951904606CITY OF PORT TOWNSEND 951909402JEFFERSON LAND TRUST 972900801CITY OF PORT TOWNSEND 955200101JEFFERSON LAND TRUST 972900901CITY OF PORT TOWNSEND 965400101JEFFERSON LAND TRUST 972900902CITY OF PORT TOWNSEND 972900402JEFFERSON LAND TRUST 972901001CITY OF PORT TOWNSEND 972900501JEFFERSON LAND TRUST 972901101CITY OF PORT TOWNSEND 972900603JEFFERSON LAND TRUST 998002001CITY OF PORT TOWNSEND 972901201JEFFERSON LAND TRUST 998002101CITY OF PORT TOWNSEND 972901401JEFFERSON LAND TRUST 998002207CITY OF PORT TOWNSEND 998000901JEFFERSON LAND TRUST 951902301CITY OF PORT TOWNSEND 998001206JEFFERSON LAND TRUST 1042001JEFFERSON LAND TRUST 998001901JEFFERSON LAND TRUST 932500402JEFFERSON LAND TRUST 998001902JEFFERSON LAND TRUST 932500403JEFFERSON LAND TRUST998001903JEFFERSON LAND TRUST 998002201JEFFERSON LAND TRUST 945300801JEFFERSON LAND TRUST 998001801JEFFERSON LAND TRUST 946500101JEFFERSON LAND TRUST Exhibit B (Right of Way Vacation Map) Proposed Right of Way Area to be Vacated Excerpt from the 2025 City Comprehensive Plan Agenda Bill AB26-043 Meeting Date: April 20, 2026 Agenda Item: IX.B Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Emma Bolin Date Submitted: 4/15/2026 Department: Planning & Community Development Contact Phone: 360-390-4048 SUBJECT:Planning Commission Recommendation to Add to 2026 Comprehensive Plan and Development Code Amendments, 2026 PCD Workplan Priorities CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: $ Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Discussion Item Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: Council, Planning Commission, and staff held discussions regarding whether or not to initiate a Comprehensive Plan Amendment in 2026 based on a request from the Quimper Growers Network. This request was sent to the Planning Commission as a written communication in March 2026 by the Quimper Growers Network. The Planning Commission voted to recommend City Council open a limited amendment process to accommodate the Quimper Growers Network’s request. Staff reviewed the Planning Commission recommendation and finds that proceeding with an amendment would require more resources than are available in 2026 without making significant tradeoffs. These tradeoffs would have an opportunity cost for 2026 Workplan items and could potentially contradict the Comprehensive Plan, which already contains support for residential gardens and existing nonconforming agriculture. This agenda bill summarizes staff’s professional and procedural rationale for not proceeding to initiate Comprehensive Plan amendments related to agriculture in 2026, despite the Planning Commission’s recommendation to include elements of the Quimper Growers Network proposal in a reopened docket. It clarifies the process context, identifies key tradeoffs, and outlines the implications of Council direction. On December 15, 2025, City Council resolved to close the suggested annual amendment cycle (docket) for the Comprehensive Plan (Resolution 25-035). No formal site-specific amendment applications were submitted prior to the February 2, 2026, deadline; therefore, there was no docket for 2026. Port Townsend Municipal Code (PTMC) does not require a public hearing on the annual docket unless the suggested amendment cycle is open or formal site-specific applicationsare received by the deadline. Since Council did not authorize a 2026 suggested docket due to staff limitations and 2026 Workplan strategic objectives relating to housing, a hearing for the 2026 annual amendment cycle was not required. Council may, but is not required to, make an exception to the closed annual amendment process pursuant to PTMC 20.04.030.A.1. A motion is required to reopen the docket to include the Quimper Growers Network’s proposal. If Council votes to advance such a motion, it must find that waiting until the next suggested amendment cycle would be detrimental to the public’s interests. In response to staff’s current capacity constraint to support further analysis, the Planning Commission decided to form a subcommittee to review the Quimper Growers Network’s proposal and worked diligently to develop a recommendation recognized by the full body. Much gratitude is owed for the dedication and passion of the Planning Commission. As the suggested amendment cycle is closed, the Planning Commission did not consider criteria in PTMC 20.04.060.C. Staff Initial Assessment of PC Recommendation and Key Trade-Off’s Staff’s recommendation contradicts that of the Planning Commission and is based not on the merits of agriculture as topic, but on legal constraints, fiscal sustainability, staff capacity, and Council’s stated long-term priorities as cited in Resolution 25-035. PCD and the broader City organization are operating over capacity. Initiating new Comprehensive Plan work would directly displace affordable housing implementation efforts, statutorily required code amendments and permit process, code modernization, and procedures implementing the Comprehensive Plan. Resources are finite and prioritizing work that does not align with key priorities for housing affordability, efficient infrastructure, and fiscal sustainability delays this urgent work. Growth Management Act and Fiscal Sustainability Misalignment Should Council direct staff to proceed with any proposal relating to agriculture, the recently adopted Comprehensive Plan would need significant modification and analysis to ensure GMA compliance. Under Washington law, WAC 365-190-050, cities must have a transfer of development rights (TDR) program in place before designating agricultural land within an urban growth area, and the designation process requires a comprehensive analysis rather than parcel-by-parcel review. This is a substantial work effort—prioritizing agricultural designation could result in reducing land inventory for housing, increasing per-capita infrastructure and utility costs and pushing development outside of the Urban Growth Area, counter to GMA’s intent. Even aspirational policies present serious consequences for legal appeal without extensive analysis, review, and engagement thereby increasingworkloadand undermining housing goals. Despite Planning Commission’s contribution, dedicated staff hours are required to determine how to ensure any policies do not createconflicts within the Comprehensive Plan,false expectations, or empower housing opposition. This analysis cannot be done independently by volunteers. There is opportunity cost to add to the closedsuggesteddocket. Staff detailed achievable vs. unachievable projects this year in its March 25, 2026, presentation to Planning Commission. Given current vacancies, onboarding and training ramp up timelines, the 2026 workplan is overextended and cannot sustain additions. Staff recommend focusing on statutorily required items—permit processing in accordance with state mandated deadlines, the Growth Management Hearing Board appeal, Parks, Recreation, and Open Space (PROS) Plan, lot splitting/commercial building conversions/HB1576 Historic Preservation compliance, and the Shoreline Master Program. Staff are fully committed in limited spare time to the Evans Vista Request For Expressions of Interest (RFEI) and affordable housing inventory update. Staff also can support Multifamily Tax Exemption (MFTE) Area residential target area expansion as time allows. ATTACHMENTS: 1. Resolution 25-035 2. Director’s Memo re: Staff Capacity 3.March 25 2026 Staff Presentation to Planning Commission re: 2026 Workplan 4. Planning Commission Subcommittee Analysis of Quimper’s Grower Network Proposal PLANNING COMMISSIONRECOMMENDATION: 3 to 2 vote to include discussion of elements of the Quimper Growers Network proposal relating to goals, policies and implementation actions as revised by the Planning Commission Subcommittee to be included in the 2026 docket. Unanimous vote recommended the City to move forward on expansion of the Multifamily Tax Exemption residential target area. RECOMMENDED ACTION: Take No Action Take No Action: No motion is required. By taking no action, the City would not move forward with potentially revising the Comprehensive Plan relating to the Planning Commission’s recommendation. No Councilaction allows staff to proceed with: Statutorily required items relating to code updates and implementation MFTE residential target area expansion (the 2026 workplan already included an overhaul of MFTE program) 2026 budgeted work plan items, as supported by available staff capacity and workload Alternative: Motion to make an exception to the closed suggested annual amendment process pursuant to PTMC 20.04.030A along with any applicable findings that to wait until the next suggested amendment cycle would be detrimental to the public’s interests. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Discussion March 26, 2026 Workplan Port Townsend Planning Commission 2026 Reviewing PTMC Chapter 20.04 Port Townsend Comprehensive Plan and Development Regulations Amendment Process nd specific - No complete applications for formal, siteamendments to the Comprehensive Plan were received before the February 22026, deadline specific - PTMC 20.04.010.B.1 timelines and procedures whereby property owners, their agents or project proponents may submit applications for formal, siteamendments to the On December 15, 2026, City Council elected to not open the docket to suggested amendments. PTMC 20.04.010.B.2 compile and maintain a preliminary docket of proposed suggested amendments to be processed during the GMA periodic update or more frequently as may be directed by council and then select which proposed suggested amendments will be placed on for However, be processed outside the Development can . Plan docket development regulations. None receivedNo time sensitive Comprehensive Plan amendments needed. regulation amendments that are consistent with the adopted Comprehensive outside the There are amendments necessary the these can be processed docket. 1.2.3. (3)), provided, if resources - Sitetimely filed and accompanied by a filing fee;Time sensitive mandated amendments as determined by the director of planning and community development; andAmendments necessary to address a deficiency in the Comprehensive Plan or development regulations identified during project review (pursuant to RCW 36.70A.470are unavailable, the amendment could be carried over. Amendments that Must be Docketed 20.04.020.B: In addition to the GMA periodic update, the city must consider certain types of amendments on an annual basis. The following types of amendments shall be docketed and considered on an annual basis: the as long as Proposed amendments, changes, or . Any such application must be made to the 20.04.080 through At any time at the request of the city council or the planning commission, or by Under the process and timelines (February 1st deadline for submittal) for In addition, immediately following a change or changes in the Port Townsend department staff; orComprehensive Plan suggested or formal amendments as specified by PTMC 20.04.035department on forms provided by the city and accompanied by payment of the required filing fee for land use code text amendments, unless the proposal is in the form of a suggested comprehensive amendment;Comprehensive Plan and land use map, the land use code must be changed to be consistent with the Port Townsend Comprehensive Plan and land use map. Initiation. The text of the adopted land use code (also referred to change is consistent with the Port Townsend Comprehensive Plan, including the shoreline environments designation map... modifications may be initiated as follows:1.2.3. PTMC 20.04.090 Land Use Code Text Revisions Family Tax Exemption per Planning Commission and - Can be processed and completed outside the docketCan be processed and completed outside the docketCan be processed and completed outside the docketCan be processed and completed outside the docket Code for conversion of commercial structures to residential uses, required under state law by June 2026 Amendments to PTMC. Lot splitting regulations must be adopted by 2027 to prevent preemption by state law. Additional work on lots of record, subdivisions, and lot line adjustment regulations must also be made more consistent (2026 and 2027)Historic Preservation Code amendments to comply with HB 1576Expand the MultiCouncil Guidance. Phase 1 residential target area expansion in 2026, with possible Phase 2 program expansion in 2027 Land Use Code Text Revisions Under Consideration for 2026 unreliable - Permit reviewGMHB remand, if anyUrban Forestry Plan Updatefunding and low staff capacityAffordability measures and fee studySubdivision/lot splitting/lots of record code updateEvans Vista RFEI SEPA, Dept of Commerce Shoreline Master Program Final AdoptionMFTE Phase IIHPC HB 1576 updatesPROS Final AdoptionConversion of Commercial to Residential CodeAffordable Housing Surplus Inventory beyond PC, Council, Committee invoicing, grant compliance, staff report and MFTE Phase I modify residential target area Engagement considerations:meetings? Who is targeted for engagement and level of effort to engage.Procedure Steps: Public hearing, noticing,review/notifications, contracting, grant and interagency coordinationStaff Analysis: Staff and consultant management, research, drafting, organizing/attending meetings and engagement events, internship oversight, legal review,presentation prep Not feasible this year Achievable this year Multifamily Tax Exemption program Growth Management Hearings Board appealAdopt 2026 Parks Recreation and Open Space PlanShoreline Master Program Periodic Update Final Adoption upon state reviewExpand Evans Vista Roadmap for Developer SelectionStart updating the inventory of property suitable for affordable housingOther affordability measures and fee studyUrban forestry plan and tree conservation ordinance update Priorities Outside the Development Regulations to wait until the next initiated amendments shall be automatically - , the city council may amend the Port Townsend Council 20.04.020 The city council may initiate amendments to the Comprehensive Plan during each annual amendment. An affirmative vote of not less than a majority of the total members of the council is required to initiate consideration of such an amendment. During formal amendment cycles, the council shall enter a finding that interests.placed on the docket and shall be considered in the next scheduled annual amendment process. The director and the planning commission may request the city council initiate a particular amendment during the next annual amendment process; Exceptions. In addition to the annual amendment process specified in 20.04.030 Exceptions to the annual amendment process PTMC Comprehensive Plan in any of the following circumstances: Program Process permits per state deadlinesGMHB appealLot Splitting HPC HB 1576 complianceRegulations on conversion of commercial to residential uses PROS PlanShoreline Master Statutorily Required Items for 2026 discussion, and Staff Recommendation City staff recommend that no items be placed on the 2026 docket. Move forward with a workplan to modify the Multifamily Tax Exemption Residential Target Area per Council and Planning Commission March 2026 Joint Meeting statutorily required items. farms, such as the Jefferson County Ag and in registration or license to clearly - /qualifying (a) definition of what constitutes urban agriculture, and ( : (a) definition of what constitutes urban agriculture, and (b) : eed an opt aa eedeed Port Townsend currently allows the use of public ROWs for minor landscaping, which does not interfere with parking, pedestrian traffic, vision at intersections and roadside drainage. As long as planting does not exceed 30 inches of height, no permit is reqIf a community garden were to be established in a ROW, fencing may be needed to keep out the deer. Currently, ROW landscaping prohibits permanent fencing. However, one may apply for a permit for gardening which exceeds minor landscaping such as estaa green ground cover.https://cityofpt.us/publicworks/page/l andscapingNprocess by which urban farmers wquantify (inventory) the Ag Lands, specifically as existing Ag lands. May nestablish/identify existing residents to push back against infill/density by establishing gardens on empty lots to prevent development.Qualification Form, pg. 8 (attached), or another method approvingOpen Space Program, commercial growers, Food Bank Gardens, and/or hold a conservation easement.Nprocess by which urban farmers will qualify Land subject to a conservation easement in Jefferson County can qualify for a reduction in property tax valuation of up to 90% through a public benefit rating system n existing farmland only. existing uses. Secondary Effects . May require staff actions . e City approval. Siting of gardens designated - Community gardens on City land or ROWrequirneeds to be compatible with Complete Streets Plan because fencing, access, storage, and operations could obstruct circulation, trails, or other open space and recreation Provision of compost or water access for irrigation could have materials and labor costs for Public Works.May require inventory or warrant creation of an overlay zone for agriculturesuch as those listed in the policy statement May require discussion of whether policy applies to all agricultural land or nonPotentially, more ag properties would take advantage of existing tax reduction programs and conservation easements. Educating residents about city programs which support agriculture requires education program implementatio , and nity, o be t print, - and urban , food processors, C community gardens Rationale , and to secure unstable land Section 1: Comprehensive Plan community gardens community gardens Using rights of way for growing food would support food security and create vibrant neighborhoods. system, including small farms, shellfish growers, and local markets against extreme weather, drought, sea level rise, and supply chain security and climate resilience and increase access to healthy foods by supporting and allowing agriculture in scale with other allowed uses in PROS Plan environmental stewardship and climate resilience through native landscaping, sustainable practices, Urban farms positively impact the community. They: mitigate effects of climate change, reduce heat islands and carbon footincrease resilience in environmental disasters, provide economic opportunities, provide educational opportunities, build commuand donate to local food bank.Urban farms need the eligible for grantstenure (when applicable). ... 66 Action Recommended Amend in 2026Amend in 202Amend in 202 agricultural , and critical easements, Proposal owned tracts and street - agricultural lands and environmentally sensitive areas. Encourage the use of unopened Rights of Way (ROWs) for public community food gardens by offering City support where feasible, such as Public Works providing compost or access to nearby water utilities for irrigation.Protect natural resource lands, archaeological properties,areas through public and private initiatives, such as open space tax incentives, cluster development, transfer or purchase of development rights, public land acquisition, dedication of Cityrights of way, conservationlandowner compacts, soliciting donations of land, downsizing, limiting the amount of lot coverage, and best management practices in development.Work with partners to educate property owners about tax reduction programs and conservation easement options available for preserving natural resource lands, More definitive support from the City is . declined to work with farmers due to lack . s conservation easements may require s designated agricultural lands: "No county e.g., ha - , n agricultural wide - o private partnerships. - farm for agricultural conservation arms and other sponsoring applicants public Land Trust and municipalities and national level , Approval for vacation of internal ROWsCurrently, fJefferson to competestateprotecting farmlandadjacent to Jefferson County land, beneficial Jefferson Land Trustof support from the Cityneeded for securing conservation grants.JCC 18.20 and 18.30 provide model ordinance language.18.20.030(3)(e)(ii)(A) and 18.30 recognize farm worker housing as an accessory use from certain building permit requirements under specific circumstances.Consult JCC 18.20.030(2)(b)(vi) for agricultural exemptions and limitations; considered a matter of right and not subject to land use permits or approval from the administrator, subject to limitations and provisions: Consult Jefferson County Development Co(18.20.030(3)(e)(ii)(A)) recognizing farm worker coaccessory use in nonbuilding permit is required for buildings or structures erected exclusively for the storage of livestock, feed, or farm implprovided, these structures are: freestanding, located at least 10 feet from the nearest structure and not attached to any structure, unless attached to another agricultural building; do not contain plumbing, except as necessary to maintain farm ani boarding in doing as Piggyback on . permanently lan. P for other purposes. lodging house or rban land, currently used for City code provides a pathway for vacation of ROWs. However, while rights of way can be vacated per RCW and City Code by City Council approval, right of way vacation is rare and generally discouraged by City policy and code unless there is a public interestso. Vacation generally results in the underlying property owner paying for the value of the release of the public easement.Uagricultural activities, may be targeted for higher density urban growth under the comprehensive City probably cannot protect/remove agricultural lands from development. Permanence language use the landAgricultural workforce housing is consistent with PTMC 17.34.130. PTMC allows shared housing housefuture planned PTMC revisions for shared (affordable) housing.Tweak PTMC to allow using JCC as a model. Address: functions, compatible with accessory uses, permanence, plumbing, heat, permitting, roads, stormwater, fire marshal access, tax implications, system development fees. Does not preclude future densification opportunity. tural ..." housing - co change related events, - ld automatically revert to the lease) which would remove the possibility of disturbance of agricultural production on internal ROWs conditioned upon continued agricultural use. In the event that the land is no longer used for agriculture, the internal ROWs woucity/public use.Recognizing the urgent imperative to increase resilience in climatemany local governments have decided to permanently protect land with high soil quality and other favorable features and/or high positive community impact for agriculuse.Beneficial for achieving housing goals for extremely low income sector. Consistent with Comp Plan P76: "Encourage innovation and variety in housing design and site development throughout the City and support unique and sustainable community housing projects such as Accessory structures are needed to support urban agriculture. . in 2026 AmendAmend in 2026.Amend in 2026. e - llow accessory farm agricultural workforce . commercial and non farming on parcels without a affordable possibility of disrupting agricultural production that occurs within internal rights of way.Work with partners to protect significant agricultural lands production through conservation easements, deed restrictions, or other means.Expand shared housing options to meet thneeds forhousing on agricultural production lands.Modify the PTMC to astructures such as greenhouses, sheds, and barns to support commercial primary residence grid solutions, which are excessive for the existing - buildings, (5) accessory buildings are not allowed on to building septic systems or buildings for parcels over 260 farm - areas near infrastructure are ideal for shared living spaces while Remote bedrooms are well suited to land in agricultural production land on the periphery are suitable for off grid detached sleeping allowing for optimal use of space without reducing pacreage. Standard (in one building) coConsult JCC 18.20.030(2)(b)(vi)(A) and 18.20.030(3) for model language.Possibly only apply to operators who either optlicensed/designated as urban agriculture May require the caveat that Ag properties will need some form of agricultural designation and registration, or licensing, to access these benefits. (See Quimper Growers form.) An optmay require licensing through the City, similarly to shortrentals within the city limits.Examples of regulatory barriers include: (1) farms that want to increase functionality by improving orrequirements for minimum lotacross large parcels, platted or not, (3) participating in stormwater management practices designed for housing rather than vegetation, (4) setbacks for agricultural buildings are significantly greater than nonparcels without a primary residence, (6) contractualwith PUD and other providers requirebackup to offagriculture uses, (7) old plats, unused for agriculture, include ROWs that cut through existing historical growing spaces and have created barriersfeet from far from sewer, and (8) recently updated maps of nonstreet travel include active transportation paths that cut across growing spaces, and in oneConsider code for agricultural housing.None. - . preclude qualifying need to lodging house or farm structures equally, - Does not may be suitable for agriculture. Promotion of City uld collaborate with these - wo boarding housePiggyback on affordable housing amendment. future densification opportunity.Modify PTMC to consider setbacks for farm and nonexcept for certain specified agricultural uses for which greater setbacks are appropriate, eg, hazardous materials, fire hazards, odor, noise.May need to screen ag properties, e.g., exemption larger ag properties but exemptions may not be appropriate for small gardenventures in densely populated neighborhoods. Future ag uses could be negatively impacted. Implies consequent code review and relief through code changes.City groups, but not necessarily be the one to host/convene meetings.City to promote irrigation meter for agriculture, and standard water meter for non esidence). farm structures. - Many types of farm buildings pose no greater risk to adjacencies than nonAgricultural areas tend to be outside of our more densely populated areas, and are on the whole farther away from well developed infrastructure, such as sidewalks.This appears to tie well into the ROW and residence. So, this fits as those actions fall beneath this one. Or they could alternatively be tied into one, combining #14 and #17 (building on lot without a primary rNo or minimal infrastructure needed for many agriculture dwellings/buildings. The goal of the City is to connect properties to municipal water. Amend in 2026.Amend in 2026 Amend in 2026.Amend in 2026.Amend in 2026. - farm - non those of lign setbacks for with commercial agricultural - with stakeholders such as Public Modify the PTMC to aagricultural buildings buildings.Allow for exemptions from minimum lot density and city infrastructure that may be unnecessary on farms, like streets and sidewalks.Remove regulatory barriers to building on consolidated or platted parcels used for agricultural production.Collaborate Utility District (PUD), farmers, Jefferson County & City to find pathways to allow offgrid solutions for agricultural dwellings and buildings such as produce packing houses on parcels without a primary residence.Ensure access to municipal water for both commercial and nonproduction to enhance food security and Healthy Food Policy Project and See QG draft Agriculture Qualification Form, pg. 8 overnight stays. See QG draft Agriculture Qualification Form, pg. 8 (attached). There are some concerns that irrigation wells could be used as potable drinking water. This creates the issue of unmonitored water usage and water quality impacts. This proposed policy change is complex with possible unintended consequences, given the variety of irrigation and drinking water sources currently used by growers, and the importance of ensuring the aquifers remain protected. It may be better to address thseparately at a future time. The city allows home occupations (e.g., small studios, professional services) that maintain the residential character, do not cause nuisances, and do not significantly increase traffic. See JCC 18.20.030(3)(d)(vi) (Agritourism) and (vii) (Classes), and JCC18.20.350 for model code language.includesCity is already coordinating with Amanda Mulholland/Farmers Market. Encourages cooperation with Jefferson County.Potential authorities for referencing definitions: JCC 18.10 (Definitions); (https://healthyfoodpolicyproject.org/draftingNational Agricultural Library.This could be a qualification, registration, or licensing program required to apply PTMC provisions/benefits/exemptions to ag. operators.(attached). City would prefer that a nonqualify agricultural operators: e.g., Jefferson County Conservation District or WA State Conservation Commission. on y noted in partnerships, e articipat possibly infrastructure, permitting, Creates additional draw upon water supply (unregulated), and ultimately may cause more harm than good. City staff recommends using irrigation meters, and there are alternate routes to obtaining a well. Contradicts City and County goals and plan to move awafrom wells and towards municipal water/PUD.Commercial activity in residential zones requires Home Occupation Permit. City requires a Special Events Permit from the Police Department. Specify zoning in PTMC edits.City would pand land, or funding assistance.No negative secondary effects PTMC implementation.Potential City administrative time and cost if program is run by City. ublic conservation education.conservation education. and and Conflicts with City goal of removing wells, and getting everyone onto the municipal water system. There is a route to apply for irrigation wells without modification of Code/Comp Plan. Residents can apply for a well, the request goes through JCPH (JeffCo PHealth) and then to Dept of Ecology, with ultimately the local water service provider having a first right of refusal on allowing the well. The City is the water provider, and could arguably allow for irrigation wells, as it sees fit.Promotes economic development, sustainability, Promotes economic development, sustainability, Common language aids implementation of support for agriculture.Focuses benefits on ag ventures offering high community value. Reject.Amend in 2026. Amend in 2026.Amend in 2026.Amend in 2026. where the , onsite rovide to effectively pacross and clear community sales and - . agricultural communityto in program that - - - an to ment - consistent permanent infrastructure farm an opt ect Where feasible, ir . d related definitions farms and properties being used ation of - the develop and events. or adopt of farm products, and agricultural tours, reate Prohibit the establishment of individual private wells, except for agricultural irrigation purposes and in agricultural settingsthe Jefferson County Department of Health assures that well water is safe for human consumptionpotable drinking water as a back up source through the City's water utility.Promote direct farmclasses,Support implementto augment by partnering with Jefferson County and the Jefferson County Farmers Market, a local food hub, to serve as economic driver.Develop and adopt agricultureComprehensive Plan and PTMC support urban agriculturerecogni zes for agricultural and food production for community benefit. Agenda Bill AB26-044 Meeting Date: Apr 20, 2026 Agenda Item:IX.C Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Jodi Adams, Director of Finance & Technology Services Date Submitted: April 15, 2026 Department: Finance Contact Phone: 360-379-4403 SUBJECT:Ordinance3364Adopting 2026 Supplemental Budget Appropriations CATEGORY: BUDGET IMPACT: Consent Resolution Expenditure Amount: $3,571.827 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: 010-041 GF - Finance General SUMMARY STATEMENT: This is the first proposed budget supplement for 2026. Total Expenditure Increase (Including Transfers) $6,684,761 Actual New Spending $3,571,827 Actual New Spending Grant Related vs Non Grant Relat Amount Grant-related new spending$1,087,348 Non-grant related new spending$2,484,479 Total$3,571,827 All expenses must be approved by Council. The budget supplementincludes all unbudgeted expenditures. The City isnot required to reduce or credit unspent line items or to increase revenue during the supplement process; therefore, an increase in the expenditure line item does not necessarily mean an increase in spending as there may be an offset under another line item that is not reflected in the supplement process. The 2026 Budget Supplement #1 includes: General Fund (010): The Police Department received an additional invoice from JeffCom for annual maintenance fees related to the software program, Tyler New World. JeffCom has interlocal agreements with the City, Jefferson County, and PenCom tojointlyfund this operation. This additional invoice is the result of billing errors on the part of the vendor and it took longer than expected to resolve. Human Resources Professional Services – Public Safety Testing line item was entered as $336 in the 2026 budget when it should have been $3,336. Each required polygraph for an incoming officer is $420 so an increase is needed to fund required onboarding tests. Unemployment Insurance Claims. The City is self-insured for unemployment, meaning it reimburses Employment Security directly for all unemployment claims. Historical claim activity is used to project and budget for anticipated costs; however, budget authority may need to be adjusted if claims exceed initial estimates. Based on current expectations, several unemployment claims are anticipated in 2026. Accordingly, staff is requesting additional budget authority to ensure adequate funding is available to cover these anticipated costs. 1% Arts Fund (160): Expenditure authority for the awarded Port Townsend Skatepark Mural project, which is supported by a Creative District grant, the City’s Municipal Arts Fund (1% for Art), and donations is requested. Community Services (199): A Washington State Department of Labor & Industries elevator inspector identified the need for hydraulic safety inspections for both City Hall elevators. These inspections are required every five years and were not anticipated during development of the 2026 budget. The City Hall fire alarm sprinkler system is required by code to undergo a wet and dry inspection. The City entered into a contract with ARC Architects to establish building valuations and lifecycle cost estimates for City-owned facilities, in support of the Facilities Equipment Rental and Revolving (ERR) fund methodology. ARC previously performed this work for a portion of City structures several years ago; the remaining work was completed in 2026. Facilities’ budget included a Parks, Recreation, and Open Space Plan professional services contract with SCJ Alliance that was approved in 2025. However, SCJ submitted their invoices in 2026, so the unspent 2025 budget is being carried into 2026. Pool Repair carryforward for 2025 repair that was billed in 2026. The Arts Division had Sound Check and Newspaper-related items budgeted in 2025 that were expended in the 2026 budget. This supplement carries forward the previous council approved expenditure authority into 2026. Public Works(305,411,412,415,417,500): Lawrence Street UAP Project $467,803 - additional Water funding is requested for water-related work added to the capital project. As part of the street and sidewalk improvements, water meters and related infrastructure will need to be relocated. The project will also replace main valves and upgrade outdated service lines to current standards. Street Sweeper $450,000 - budgeted in 2025 and ordered in May 2025. The delivery is anticipated in December 2026; therefore, carry forward budget authority is requested. Seton Mill Road Project $245,812 - Carryforward budget authority is requested as the project was budgeted in 2025; however, the invoice was not paid until February 2026, so the related expenditure authority needs to be carried forward into 2026. Transportation Benefit District Funding for 2026 Chipseal (with County) - replaces $200,000 of Transportation Benefit District funding with REET for $268,000. Increase due to increase in material costs (Oil and Rock). Security cameras at the City Shops - split between the divisions that have offices and store equipment at the shops. This includes Streets, Storm, WWC, Water, and Fleet. Information Technology (IT) Operating (520): State and Local Cybersecurity Grant. IT received this grant from the Washington Military Department (Federal Emergency Management Agency funded the state pass through entity) to assist the City with managing and reducing systemic cyber risk. This grant will allow the City to update firewall hardware and provide a critical link in maintaining connectivity for the City. Additional updates in the 2026 First Budget Supplement: An annual review and update of the City’s Cost Allocation Plan and Equipment Rental and Revolving (ERR) Fund methodology should be conducted to ensure the continued accuracy and appropriateness of the underlying assumptions and allocation methods. We have attached our updated methodology for review. General Fund Overhead Cost Allocation The General Fund cost allocation plan methodology was updated to better align overhead charges with the level of benefit received by each fund and department.Since 2023when the last allocation plan was developed,there have been many changes instaffing, organizational structure, and support responsibilities. The changes to allocation drivers are intended to improve fairness, consistency, and transparency in how General Fund administrative and support costs are allocated. Information Technology (IT) Equipment Rental & Revolving(ERR)Plan The IT ERR plan was updated with a new methodology to more equitably distribute costs across benefiting funds. The previous plan allocated operating costs based on department headcount while the new plan uses a combination of weighted device units and storage usage to better align charges with the level of ITeffort and resourcesused by each fund. This updated planis intended to improve fairness and consistency in how IT operatesand replacement costs are allocated. Capital Carryforwards Since the 2026 budget was developed before final 2025 actuals were available, the original carryforward amounts included in the budget were based on estimates. With actualexpenditures now available, the budget can now be updated to reflect the true carryforward amounts for active projects, ensuring the same total expense budget authority remains availablein the current budgetto complete the projects as originally authorized. City of Port Townsend Grants: ATTACHMENTS: 1.Ordinance3364 2.City of Port Townsend 2026Supplemental #1Detail 3.Attachment A: 2026 General Fund Cost Allocation Plan 4.Attachment B: 2026 IT ER&R Plan and Cost Allocation Methodology CITY COUNCIL COMMITTEE RECOMMENDATION:At the April 13, 2026 meeting, the Finance and Budget Committee recommended forwarding the Supplemental Budget #1 request to City Council. RECOMMENDED ACTION: Move to approve the first reading of Ordinance 3364 Adopting 2026 Supplemental Budget Appropriations. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Ordinance 3364 Page 1 of 2 ORDINANCE NO. 3364 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING 2026 SUPPLEMENTAL BUDGET APPROPRIATIONS WHEREAS, the City Council adopted the 2026 Budget under Ordinance 3359 on November 17, 2025 and was set forth in the document entitled “City of Port Townsend 2026 Budget”; and WHEREAS, new or unforeseen projects and costs were not identified at the time of the 2026 Budget adoption; and WHEREAS, for some capital projects, funds appropriated in 2025 were not spent due to project delays or project changes; and, WHEREAS, staff recommends appropriating funds for the new and unforeseen projects and costs as identified for 2026; and WHEREAS, the City Council reviewed the supplemental budget on April 20, 2026 and considered the matter further on May 4, 2026; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. 2026 Supplemental #1 Budget Adopted. The supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2026, is adopted as set forth in the document entitled “City of Port Townsend Budget 2026 Supplemental #1 Detail”, making revenue and expenditure revisions. Section 2. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, line item, section, portion of this ordinance or its attachments,or the invalidity of the application to any person or circumstance shall not affect the validity of the remainder of the ordinance or the validity of its application to other persons or circumstances. Section 3. Effective Date. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a regular business meeting thereof, held this 4th day of May 2026. \[SIGNATURES ON FOLLOWING PAGE\] Ordinance 3364 Page 2 of 2 ___________________________________ Amy Howard Mayor Attest: _____________________________ Alyssa Rodrigues City Clerk Reason JeffCom contract - contract updateCorrecting 2026 Budget EntryIncrease for Unemployment Fund 137,766 New estimate for 2026 unemployment disburesements 100,000 Increase for New San Juan EstimateIncrease for MaterialsIncrease spending authority for newly awarded grant 1XCarryforwardCarryforwardInstall security camera's at the City Shops - split between divisions 237,615 TBD Match for Chipseal 2026Switched Funding Source From TBD to REETCapital Authorized after Budget: AB25-119Carryforward 108,949 REET Contribution for 2026 Chipseal (With County) 1X 268,000 Part of Grant Match for Skatepark Mural 13,800 City Hall Elevator required Hydraulic Inspection.Carryforward - Cotton Building vandalism window replacementCarryforwardCarryforwardSCS PROS Plan Update - 2025 Carry ForwardPool RepairsSound Check/Prof Svcs - 2025 Carry ForwardExpenditure authrority for WA Art Grant 1XExpenditure authrority for WA Art Grant 1X 105,084 Capital Authorized after Budget: AB25-119Aligns 2026 budget to Capital timing; no change to Capital budgetCapital Authorized after Budget: AB25-119Capital Authorized after Budget: AB25-119 409,599 TBD REET TBD & REET Fund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund Balance Fund BalanceFund Balance Fund Balance Fund Balance Funding Source TBD & Grant FundsTBD & Grant Funds TBD & Grant Funds General Fund Transfer Existing Capital Funding Comm Svcs Fund BalanceComm Svcs Fund Balance Allocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget Increase WCIA Risk Reduction Grant General Fund Fund BalanceGeneral Fund Fund Balance General Fund Fund Balance General Fund Fund Balance Grant & 1% Arts fund MatchGrant & 1% Arts fund Match - 8,115 4,500 2,000 8,115 8,000 7,900 5,700 5,000 6,889 5,000 44,936 20,000 13,800 13,800 12,000 17,795 11,800 30,000 10,000 521,227 130,000 125,000 465,000 268,000 465,000 105,834 268,000 370,894 143,705 696,163 125,000 767,615 578,949 268,000 105,084 529,599 Budget Total Supplemental #1 New 3,000 8,115 4,500 2,000 8,115 8,000 7,900 5,700 5,000 6,889 5,000 34,766 68,000 20,000 13,800 12,000 17,795 11,800 30,000 23,705 10,000 135,000 195,000 105,834 370,894 137,766 100,000 237,615 108,949 268,000 105,084 409,599 (200,000) Increase Request Supplemental #1 13,800 100,000 100,000 268,000 - - - - - - - - - - - - - - - - - - - - - -- 41,936 30,000 25,000 25,000 486,461 558,397 330,000 200,000 530,000 270,000 200,000 470,000 120,000 120,000 Item Budget Adopted 2026 Account Description Professional ServicesProf Svs-Public Safety TestingOperating Transfer OutUnemployment DisbursementsRoad/Streets MaintenanceRoad/Streets MaintenanceRoad/Streets MaintenanceRoad/Streets MaintenanceRoad/Streets MaintenanceMachinery & EquipmentOperating Transfer OutOperating Transfer OutOperating Transfer OutOperating Transfer OutTransfer-Out REET2 -Street CIPOperating Transfer OutProfessional Service-ElevatorRepairs & MaintenanceRepairs & MaintenanceProfessional ServicesProfessional ServicesRepairs & MaintenanceProfessional ServicesArt Grants - SuppliesArt Grants - Professional ServOther Improvements-SidewalksProfessional ServicesEngineering Interfund ServicesProfessional Services Item Description City of Port Townsend 2026 Supplemental #1 Detail General Fund - Supplemental Appropriations Interlocal Agreement - JeffComPublic Safety Testing - new officersIncrease transfer amount to the Unemployment Fund Total General Fund Supplemental AppropriationsUnemployment Self-Insurance Fund - Supplemental Appropriations Increase in Unemployment disbursements Total Unemployment Self-Insurance Fund Supplemental Appropriations Street Operating Fund - Supplemental Appropriations 2026 Street Repair (Incl. hot spot)2026 Chip Seal (Partner with County Crews)WCIA Grant for Washington StRadar Trailer, carry fwd from 20252025 carry over striping retainageCameras at City Shops Total Street Operating Fund Supplemental Appropriations Transportation Benefit District Fund (TBD) - Supplemental Appropriations TBD Funding for 2026 Street Repair (Incl. hot spot)TBD Funding for 2026 Chipseal (With County)TBD Funding for Grant funded Capital Chipseal PM 1086-0TBD Funding for Radar Trailer, carry fwd from 2025 Total Transportation Benefit District Fund Supplemental Appropriations REET - Supplemental Appropriations REET Funding for 2026 Street Repair Hot Spot Total REET Supplemental Appropriations 1% Arts Fund - Supplemental Appropriations Municipal Arts Fund Match for the Skatepark Mural Total 1% Arts Fund Supplemental Appropriations Community Service Funds - Supplemental Appropriations TK Elevator RepairsGroves Window Replacement at Cotton BuildingCity Hall 5 Year Wet/Dry InspectionARC Architects - ERR Rate ModelSCJ PROS Plan Update - 2025Pool RepairsCarryforward Arts Professional Service BudgetSkatepark Mural Art Grant -SuppliesSkatepark Mural Art Grant -Professional Services Total Community Service Funds Supplemental AppropriationsStreet Capital Fund - Supplemental Appropriations 2026 Chipseal PM 1086-0 ConstructionSR20 Bike-Ped Bishop PM 1075-0 Design2026 Chipseal PM 1086-0 Staff Time2026 Chipseal PM 1086-0 Design Total Streets Capital Fund Supplemental Appropriations Increase for New Water Infrastructure Capital WorkAligns 2026 budget to Capital timing; no change to Capital budget 563,803 Jefferson County Community Development Bill 58,154 Carryforward 45,000 Increase for Additional Work Per AB26-031Repair needed for damaged lift station pumpReplacement needed for Control system backup power 79,000 Increase for Emergency Repairs 100,000 Increase in storm eligible work from 30% Design Budget 254,540 Aligns 2026 budget to Capital timing; no change to Capital budget 90,282 OGWS Transfer for increase in Emergency Repairs 100,000 2,000 Carryforward 450,000 Increase for Cybersecruity Grant Program 1X Increase for Cybersecruity Grant Program - Prof Svcs 1X 62,500 Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Grant Funded Grant Funded Existing Capital Funding Allocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget IncreaseAllocated Budget Increase Allocated Budget Increase 2,000 2,000 2,000 7,500 65,000 65,000 40,000 24,000 13,000 79,000 90,282 90,282 82,000 82,000 55,000 62,500 467,803 158,367 160,000 483,540 160,000 450,000 158,367160,000485,540160,000450,000 1,723,000 2,192,803 2,000 58,15445,00079,000 90,282 90,28262,500 100,000 563,803 100,000 254,540 100,000 450,000 2,000 2,000 2,000 2,000 7,500 94,000 58,154 45,000 40,000 24,000 13,000 55,000 467,803 100,000 252,540 450,000 - - - - - - - - - - - - - - - 20,000 60,000 60,000 80,000 20,00060,00060,00080,000 100,213 100,213 231,000 231,000 1,629,000 1,629,000 Operating Trfr - CIP W/SOperating Trfr - CIP W/SMachinery & EquipmentProfessional ServicesMachinery & EquipmentProfessional ServicesRepairs & MaintenanceMachinery & EquipmentMachinery & EquipmentMiscellaneous OGWSOperating Transfer OutMachinery & EquipmentEngineering Interfund ServicesTransfer Out - OperatingMachinery & EquipmentMachinery & EquipmentMachinery & EquipmentProfessio nal Services City of Port Townsend 2026 Supplemental #1 Detail Water Distributions Fund - Supplemental Appropriations Water Funding for Lawrence St Multimodal & Reconstruction PM 1080Meter Replacement Capital 6000-4Cameras at City Shops Total Water Distributions Fund Supplemental AppropriationsWater Quality Fund - Supplemental Appropriations HDR's work on Coordinated Water Systems Plan Total Water Distributions Fund Supplemental AppropriationsWaste Water Treatment Fund - Supplemental Appropriations Non-Potable Pump Replacement Total Waste Water Treatment Fund Supplemental AppropriationsWastewater Collection Fund - Supplemental Appropriations Sewer Rate Model UpdateGaines st Lift Station Pump RepairControl Computer UPS Replacement (3)Cameras at City Shops Total Wastewater Collection Fund Supplemental AppropriationsWater Fund (OGWS Operating) - Supplemental Appropriations OGWS Emergency Repairs Total Water Fund (OGWS Operating) Supplemental AppropriationsStormwater Fund - Supplemental Appropriations Storm Funding for Lawrence St Multimodal & Reconstruction PM 1080Cameras at City Shops Total Stormwater Fund Supplemental AppropriationsWater Sewer Capital Capital Fund - Supplemental Appropriations Lawrence St Storm & Sewer Separation PM 7102-0 Staff Time Total Water Sewer Capital Fund Supplemental AppropriationsOlympic Gravity Water System Fund - Supplemental Appropriations OGWS Emergency Repairs Total Olympic Gravity Water System Supplemental AppropriationsFleet Operating Fund - Supplemental Appropriations Cameras at City Shops Total Fleet Operating Fund Supplemental AppropriationsFleet Replacement Fund - Supplemental Appropriations Street sweeper, carry fwd from 2025 Total Golf Course Fund Supplemental AppropriationsIt Operating Fund - Supplemental Appropriations Cybersecurity Grant Program - EquipmentCybersecurity Grant Program - Professional Services Total IT Operating Fund Supplemental Appropriations Excludes internal reimbursements, cost allocations, and all interfund transfers; does includes prior-year spending carryforwardsIncludes grant match, grant-reimbursed expenditures, and other related grant costs (No Transfers). $60,717 $207,044$114,017 $3,248,592$1,790,827$1,326,064$1,087,348$2,484,479 $6,747,261$3,571,827$3,571,827 AmountAmount 2026 Supplemental #1 Summary Total Description Capital Carryforwards Actual New Spending IT ERR Allocation Update Grant-related new spending Non-grant related new spending Capital Funding Carryforwards (Transfers) General Fund Cost Allocation Plan Update Total Expenditure Increase (Including Transfers) Regular Supplemental Items (Including Transfers) Public Works Administration Overhead Allocation Update City of Port Townsend 2026 Supplemental #1 Detail Actual New Spending Grant Related vs Non Grant Related 245,812 340,862 487,047 227,320 448,649 191,636 236,852 833,982 538,249 299,910 402,406 172,239 175,555 108,682 324,500 100,000 607,443 140,069 348,305 415,344 164,418 2,129,804 1,088,952 1,327,596 1,180,191 1,493,715 14,029,537 New Budget Total 9,344 4,612 99,113 74,575 69,730 63,649 59,476 54,886 41,723 39,982 36,331 24,910 22,406 22,239 21,170 20,682 20,000 17,000 13,286 12,715 11,569 10,109 500,804 245,812 156,841 137,862 1,790,827 Caryforward Total - 88,000 83,000 932,111 203,000 412,472 157,590 385,000 136,750 195,130 794,000 501,918 275,000 380,000 150,000 154,384 304,500 594,157 128,500 338,195 406,000 159,806 1,629,000 1,228,483 1,120,714 1,481,000 12,238,710 Adopted 2026 Budget Capital# PM 6000-4PM 6403-0PM 1086-0PM 7000-2PM 1000-4PM 6043-1PM 1046-0PM 7022-0PM 1038-0PM 6404-3PM 1039-0PM 7102-0PM 1077-0PM 6404-2PM 1075-0PM 0018-0PM 1072-0PM 7043-0PM 1069-0PM 1071-0PM 7024-0PM 1029-0PM 1000-1PM 7049-0PM 2000-1 City of Port Townsend 2026 Supplemental #1 Detail - Capital Capital CarryforwardsCapital Carryforward Summary Total Carryforward Summary Meter ReplacementMill Road Streets CapitalLords Lake Pipe & DamWashington/Walker SidewalkHolcomb & Wilson SewerStreets 23 Banked CapacitySnow Creek Ranch BreakSRT - NH ConnectionsMill Road Lift StationArterial Cohesive StrategyCathodic ProtectionHOPE SR20Lawrence St Storm & Sewer SeparationODT Fort Worden ConnectionCondition AssessmentSR20 Bike-Ped BishopPink House19th Street Safety CapitalNew Compost Facility Building2025 Traffic Calming CapitalDiscovery Rd/Sheridan/19thInfluent WetwellSafety Action Plan (SS4A)Streets 22 Banked CapacityWashington Street Sewer RepairParks Banked Capacity 74,367 40,000 29,443 75,000 75,000 25,000 49,910 245,812 520,341 232,060 237,614 402,406 232,650 327,000 415,344 2,035,804 1,088,952 1,338,827 1,611,215 9,056,745 New Funding Total 9,344 5,000 4,910 99,179 87,341 74,470 42,688 42,485 40,000 22,406 21,375 20,000 12,715 12,693 12,000 10,000 406,804 245,812 156,841 1,326,064 Funding Increase - - 31,679 16,750 63,000 65,000 20,000 45,000 932,111 433,000 157,590 195,130 380,000 211,275 307,000 406,000 1,629,000 1,239,648 1,598,500 7,730,681 Adopted 2026 Budget Source Water FundingTBD FundingOGWS FundingSewer SDC FundingSewer FundingOGWS FundingREET FundingOGWS FundingStorm FundingOGWS FundingStorm FundingSewer FundingSewer FundingTBD FundingTBD FundingTBD FundingSewer FundingFee in LieuREET Funding City of Port Townsend 2026 Supplemental #1 Detail - Capital Capital CarryforwardsFunding Carryforward Summary Total Funding Increases Meter ReplacementMill Road Streets CapitalLords Lake CapitalHolcomb & WilsonLawrence St UAPSnow Creek Ranch BreakWashington/Walker SidewalkCathodic ProtectionStreets 22 Banked CapacityCondition AssessmentStreets 23 Banked CapacityNew Compost FacilityInfluent WetwellArterial Cohesive Strategy2025 Traffic CalmingHOPE SR20Washington Street Sewer Repair2025 Traffic CalmingODT Fort Worden Connection 207,044 Explanation Utility Billing Department moved to Finance (GF)Excluded from new methodologyExcluded from new methodology Fund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund Balance Funding Source Budget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget ReductionBudget Reduction Allocated Budget Increase - - - 891 9,833 6,524 3,303 9,936 66,402 10,180 54,119 81,472 68,002 50,590 57,068 56,618 27,590 131,472 329,717 113,522 269,397 209,978 155,698 110,955 1,823,266 Direction Budget Total Supplemental #1 New $0$0 891 $891 9,833 6,524 3,303 9,936 4,244 $9,833$6,524$3,303$9,936 (7,438) (5,649) (1,374) 54,119 18,832 83,423 $66,402$10,180$56,618$27,590 (12,886) (74,851) (78,443) (67,539) (65,096) (40,413) (12,645) (13,134) (24,466) 146,629 147,009 126,236 207,044 $131,472$203,593$443,239$377,054$209,978$155,698$110,955 $1,823,266 Increase Request Supplemental #1 New Budget Total - - - - - - $891 1,374 $9,833$6,524$3,303$9,936$4,244 79,288 17,618 65,096 63,235 38,236 13,134 83,742 62,267 52,056 72,275 -$7,438-$5,649-$1,374 $41,120$83,423 206,323 159,915 135,541 183,088 153,935 122,388 106,711 -$12,886-$74,851-$91,863-$13,134-$24,466 $153,195$126,236$207,044 1,616,222 BudgetChange Adopted 2026 Overhead $0$0$0$0$0 $1,374 $79,288$17,618$83,742$13,134$62,267$52,056$72,275 $206,323$295,456$376,138$249,840$106,711 $1,616,222 Adopted Budget Account Description G/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H Chgs-FacilitiesG/F Admin O/H Chgs-ParksG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H ChargesG/F Admin O/H Alloc Fund Item Description City of Port Townsend 2026 Supplemental #1 Detail - General Fund Overhead General Fund Overhead - Supplemental Appropriations Streets OperatingTransportation Benefit DistrictLibraryReal Estate Excise TaxLodging TaxAffordable HousingCommunity Services GeneralCommunity Services FacilitiesCommunity Services ParksUtility BillingWater DistributionWater QualityWaste Water TreatmentWaste Water CollectionsBiosolid sOlympic Gravity Water SystemStorm OperationsGolf ParkSystem Development ChargesFleet OperatingIT OperatingPublic Works AdministrationEngineeringCustodial Fund Total General Fund Overhead Supplemental Appropriations Summary: GF Cost Allocation Budget Changes by Fund 110 Streets Operating111 Transportation Benefit District120 Library135 Real Estate Excise Tax150 LTAC Fund180 Affordable Housing199 Community Service445 Water455 Sewer412 Stormwater417 OGWS423 Golf Park495 System Development Charges510 Fleet520 IT Operating540 PW Admin555 Engineering610 CustodialTOTAL 114,017 Explanation Higher GF overhead, IT ERR, & replacement Fund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund Balance Funding Source Allocated Budget Increase 51,911 63,962 81,574 68,967 55,619 37,079 139,047 101,041 176,126 775,325 Direction Budget Total Supplemental #1 New 7,634 9,406 8,179 5,453 20,448 11,996 10,142 14,859 25,900 $51,911$37,079 114,017 $203,008$206,160$101,041$176,126$775,325 Increase Request Supplemental #1 New Budget Total $7,634$5,453 44,277 54,556 69,578 58,825 47,440 86,182 31,626 $29,854$30,317$14,859$25,900 118,599 150,226 661,308 $114,017 Budget Change Adopted 2026 Overhead $44,277$86,182$31,626 $173,155$175,843$150,226$661,308 PW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H AllocPW Admin O/H Alloc Adopted Budget Account Description Fund Item Description City of Port Townsend 2026 Supplemental #1 Detail - Public Works Admin Overhead Summary: PW Admin OH Budget Changes by Fund Public Works Admin Overhead - Supplemental Appropriations Streets OperatingWater DistributionWater QualityWaste Water TreatmentWaster Water CollectionsBiosolidsStorm OperatingFleet OperatingEngineeri ng Total Public Works Admin Overhead Supplemental Appropriations110 Streets Operating445 Water455 Sewer412 Stormwater510 Fleet555 EngineeringTOTAL 27,838 Explanation Adjusted for updated IT overhead methodologyIncludes Utility Billing cost Fund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund Balance Funding Source Allocated Budget Increase - 3,433 3,433 9,976 4,233 7,143 9,003 2,450 3,433 5,227 1,716 4,974 9,830 3,888 3,043 13,106 38,716 48,757 26,836 51,021 13,663 11,128 16,152 15,902 16,051 46,532 37,473 113,801 520,919 Supplemental #1 New Budget Total (482) 9,976 4,233 3,433 5,227 1,716 1,780 4,974 3,888 2,548 3,651 (2,239) (7,870) (7,070) (5,046) (4,371) (4,707) (2,779) (4,292) 13,106 26,836 44,651 29,649 30,168 27,838 (32,173) (54,138) (20,737) (12,093) Request Supplemental #1 Increase - - - - - - - - - 495 5,672 9,485 4,707 35,606 15,013 45,786 53,803 69,150 56,588 21,372 18,034 31,865 28,245 14,122 18,830 14,122 16,364 33,822 493,081 Adopted 2026 ERR Budget Account Description ERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip MaintERR - IT Equip Maint Item Description City of Port Townsend 2026 Supplemental #1 Detail - Information Technology ERR Information Technology Overhead Allocation - Supplemental Appropriations General FundCouncilCity ManagerAttorneyCommunicationsHuman ResourcesPlanningFinancePolice OperatingPolice AdminClerk DeptStreets OperatingLibraryLodging Tax Community Serv GeneralCommunity Serv FacilitiesCommunity Serv ParkCommunity Serv ArtsUtility Billing (Finance)Water DistributionWater QualityWaste Water TreatmentWaste Water CollectionBiosolids DepartmentStorm OperatingFleet OperatingPublic Works AdministrationEngineering Department Total Information Technology Overhead Allocation Supplemental Appropriations 32,440 Direction Explanation Adjusted per review of IT inventoryIncludes Utility Billing cost $3,722$4,014$3,178$8,754 -$1,950 $67,239$29,791$30,594$60,717 -$55,561-$16,631-$12,433 Fund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund BalanceFund Balance Total Change Funding Source Allocated Budget Increase - - 383 383 431 380 290 289 290 838 497 623 631 $142$290$943$126$631$425 3,604 3,762 9,128 3,394 7,528 2,370 2,661 3,472 2,091 1,255 1,988 8,302 $1,534$1,790$5,103 23,407 77,995 -$1,422 $23,317$32,879 Supplemental #1 New Budget Total Replacement Change $0$0 804 383 142 290 289 674 281 290 641 126 631 425 $497 (739) (447) (230) (696) (439) (422) (953) 5,571 3,394 2,212 1,255 5,103 $1,802$7,386$4,076$2,520$2,900$1,563$3,199 (1,422) 15,279 32,440 $21,173$45,116 Request Supplemental #1 Increase Replacement Adopted Budget - - - - - - - 739 830 439 497 2,800 3,992 3,557 8,128 1,127 1,802 7,386 1,696 2,380 1,260 1,260 1,450 1,450 1,563 3,199 $3,433$3,888$2,548$3,651 -$2,893 45,555 $43,922$29,649$30,168 $27,838 -$54,138-$18,165-$14,224 OH Change Adopted 2026 ERR Budget $0$0 $495 $56,588$21,372$49,899$45,015$35,011$16,364$33,822 $234,515 $493,081 OH Adopted Budget Account Description ERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip ReplacementERR - IT Equip Replacement Fund Item Description City of Port Townsend 2026 Supplemental #1 Detail - Information Technology ERR Information Technology Replacement - Supplemental Appropriations General FundCity ManageAttorneyHuman ResourcesPlanningFinancePolice OperatingPolice AdminClerk DeptStreets OperatingLibraryLodging Tax Community Serv GeneralCommunity Serv FacilitiesCommunity Serv ParkCommunity Serv ArtsUtility Billing (Finance)Water DistributionWater QualityWaste Water TreatmentWaste Water CollectionBiosolids DepartmentStorm OperatingFleet OperatingPublic Works AdministrationEngineering Department Total Information Technology Replacement Supplemental Appropriations Summary: IT ERR Budget Changes by Fund 010 General Fund110 Streets Operating120 Library150 LTAC Fund199 Community Service445 Water455 Sewer412 Stormwater510 Fleet540 PW Admin555 EngineeringTOTAL '¤­¤± « &´­£ #®²³ !««®¢ ³¨®­ 0« ­ ΑΏΑΕ %£¨³¨®­ -¤³§®£®«®¦¸Ǿ !««®¢ ³¨®­ $±¨µ¤±²Ǿ  ­£ !£¬¨­¨²³± ³¨µ¤ 3´¯¯®±³ #®²³ 2¤¢®µ¤±¸ 1. Purpose The purpose of this General Fund Cost Allocation Plan is to document a consistent and equitable cost recovery methodology for the administrative and support costs within the General Fund This Plan is intended to: • Make sure shared support costs are distributed to the funds/departments that - • Use fair and of the cost” • • Cost Pool: The total direct cost associated with an administrative or support • Direct Cost: Expenses included in a cost pool that are necessary to provide the •Allocation Driver: A measurable factor used to distribute a cost pool to funds or • : A fund or department that receives a measurable •: Full- 3. Scope 001 and 3.001 T cost pool orretained in the General Fund • 011 - • 012 - • 013 - City Attorney • 014 - Communications Dept • 015 - •022 -Planning & Community Development o Permit Techs • 041 - o o o General o o o Payroll • 051 - Police Admin • 054 - Police Operations • 060 - Police Training • 080 - City Clerk • 093 - Contracts • 155 - • 200 - Fund Equity General Fund-supported cost pools that are not d-related 3.00 r direct Funds with no FTEs and little or no ongoing operating activity may be excluded from certain F-through ledgers rather than as active operating funds are excluded tive operating funds and do not meaningfully consume support services Another example is the Unemployment fund which exists primarily to receive transfers and pay unemployment- General Fund They do not directly bear overhead as standalone funds because they do not independently capital overhead directly to capital funds would often require additional transfers solely to cover without changing which operating included in This approach is intended to ensure that overhead is allocated to active operating areas that actually use the 3.01 •- • • Mayor & Council costs will be allocated using a hybrid driver: 80% qual- 3. • sall funds and • • City Manager costs will be allocated using a hybrid approach that - o 30% - General governance / interagency work (retained in the General Fund): and intergovernmental coordi - o 20% - Council-facing workload: Allocated based on agenda bill count by -facing o 50% - o Allocation percentages are reviewed annually and updated during the budget () No allocation is applied for this cost pool in the 2026 Plan No allocation is applied for this cost pool in the 2026 Plan • levels and employee relations) • • will be allocated 3- • • Accounts Payable • Allocate AP costs based on • Certain pass- similar non- -ledger funds and do not represent departments or programs that directly consume AP allocation by assigning AP costs to funds that primarily serve as pass-throughs • -ledger capital fund invoic non- and invoice activity will be assigned to due to Engineering managing the ing the appropriate funding source (due to engineering being an internal service fund) the department or fund ultimately pa o and will be assigned to fund - • Payroll services support all departments and scale with the number of employees in departments • •Payroll costs will be allocated - • • any • • Workl o 40 o 40% Sewer o 20% Stormwater • calculated from water usage and should therefore share in the cost of the metered-billing the budget process • - -related duties (including - -solving handled by the Finance - -related management time - PELs UB • • those positions software) when • -based • o - consistently tied to a cashiering transaction) o - non- o (count-based allocation across funds represented in cashiering activity) o grant-related - •-facing and heavily driven by cashiering and payment--count allocation for a substantial portion of costs is equitable and auditable because it aligns costs with measurable ing funds (utilities and other includes non-transactional support (website/communications and general -related assistance thatcannot be consistently captured through transaction counts overcharging funds for work that is not transaction- communications work is predominantly General Fund--person public questions related to engineering and capita - • • (this may include records-related storage costs) • Allocate records costs based on public records request count by Multi-department requests: Each request will be to the primary department unless multiple de • Some requests cannot be allocated as a shared citywide portion and spread equally across funds/departments Funds with no employees will be excluded from equal-share allocation - • • -wide supplies and support costs) that are not captured in other Financ • share of budgeted operating expenditures for funds/departments with FTEs (“budget • : n base because capital budgets can include multi- activity or reporting budgeting and reporting is handled separately through the P Accounting position during the budget process 3.080 • City Clerk services support the organization by managing legislative • • Allocate City Clerk costs based on o 50% GF non-recoverablefor committees & Advisory boards o 50% ag count will be converted to a percentage of total City count and used to assign 3. • IStop- • • • • -facing exposure • • Fund Description 010 General 1 110 Streets Operating 4 120 1 150 1 199 Community Serv 2 411 3 412 Storm Utility 3 510 Fleet Operating 1 520 IT Operating 1 540 1 555 Engineering 1 3.091 • owned/leased vehicles and short-term rentals from physical damage losses • Auto physical damage premiums/assessments and directly related • The value of shared vehicles (available for use by multiple departments) will be included and spread across funds with 3.092 No allocation is applied for this cost pool in the 2026 Plan 3.093 No allocation is applied for this cost pool in the 2026 Plan 3.094 No allocation is applied for this cost pool in the 2026 Plan driver is data-her measurable recent complete driver data available dur made after year- in the original allocation monthly • City Manager/Finance Director: Approves the annual Plan update and allocation results through the budget process 4.3 and calculation Isaac Johnson Finance Department | City of Port Townsend Supplement #1 OverviewCapital Carryforwards & FundingGeneral Fund Cost Allocation UpdateIT ER&R UpdatePW Admin OverheadGrant FundingSupplement #1 Summary 1 7 5 23 46 SUPPLEMENT 1 | OVERVIEW Agenda time expenses or authority for new spending - Capital and operating carryforwardsGrant and project adjustmentsItems missed during budget adoptionOne SUPPLEMENT 1 TYPICALLY COVERS - end, - end actuals. - What is a Carryforward?A carryforward brings budget authority from prioryear planned work (not yet completed) into the current year's budget.Because the budget is adopted before yearestimated totals are used. Carryforwards reconcile those estimates against year The adopted budget already includes items that were not expected to be completed in 2025. SUPPLEMENT 1 | OVERVIEW Supplement #1 Overview $5,000 $99,179$61,375$47,598$42,060 $406,804$313,213$296,202 $1,271,431 Funding carried forward(transfers only) Water FundingTBD FundingOGWS FundingSewer SDC FundingStorm FundingREET FundingSewer FundingFee in Lieu Total $25,782 $791,504$631,090$245,812$236,980 $1,931,168 end. Both the authority to spend AND the funding to support it must be carried forward (the - Spending carried forward Water CapitalStreets CapitalStreets OperatingSewer CapitalGeneral Capital Total SUPPLEMENT 1 | CAPITAL CARRYFORWARDS Capital Carryforwards & Funding Most capital projects span multiple years. Supplement 1 adjusts for timing and carries forward budget authority for work not completed by yeartransfers). Public Works Engineering UTILITIES GENERAL FUND Shared Services Accounts Payable · HR · Payroll · Mgr LIBRARY Main Idea: More Benefit = More Share of the Cost STREETS SUPPLEMENT 1 | COST ALLOCATION PLAN What is a Cost Allocation Plan?Departments inside the General Fund (Accounts Payable, HR, Payroll, City Manager) provide services that benefit the whole City. The benefiting funds then pay the general fund for those services. Costs don’t have to be recovered, but if they are then a cost allocation plan must be in place to distribute those shared costs fairly. and the and allocates only — excluding capital, replacement, - avoids unnecessary transfers house - through funds that act as accounting systems and - Plan hasn't kept pace Methodology review is every ~5 years; drivers refresh annually during budget. 2024 drivers are outdated Water/Sewer fund split adds more to update.What's posted has drifted Journal entries have diverged from the original methodology as fund participation changed over time.Built in The new plan to operating funds with FTEs and passdon’t meaningfully consume the services. 1 23 WHAT'S DRIVING THE UPDATE since changed. cost allocation methodology. THE PREVIOUS PLAN Outsourced to CPA Inc. using 2022 data. Last meaningful update to the City's Positions, workload, and fund structure have 2023 SUPPLEMENT 1 | COST ALLOCATION PLAN Why we're updating based, moving to Fleet model next - weighted) - IN SCOPE FOR 2026 Mayor & CouncilCity ManagerHRFinance: AP, Payroll, UB, PELs, Records, GeneralCity ClerkLiability Insurance (riskVehicle Insurance (valueyear)PAUSED IN 2026 City AttorneyCommunicatio ns (not in prior plan; could be included in future)Property Insurance (Moving to Facilities ER&R model)Crime InsuranceEquipment Insurance Remains in General Fund for 2026. Not every cost must be recovered. through funds are excluded. - Finance split into real functions AP, Payroll, Utility Billing, PELs, Records, and General each have their own cost pool and driver. Previously: only AP, Payroll, and General.Drivers that match the work Invoice count drives AP. Transactions drive PELs. Metered workload drives Utility Billing.Hybrid drivers when appropriate City Mgr: 30% governance / 20% agenda bills / 50% FTEs. Mayor & Council: 80% agenda bills / 20% equal share.Cleaner exclusions Replacement, capital, and pass SUPPLEMENT 1 | COST ALLOCATION PLAN What's changing for 2026 METHODOLOGY HIGHLIGHTS Direction $0$0 $891 $9,833$6,524$3,303$9,936 $66,402$10,180$56,618$27,590 $131,472$203,593$443,239$377,054$209,978$155,698$110,955 $1,823,266 NEW TOTAL$1,823,266 New Budget Total $891 $9,833$6,524$7,438$3,303$9,936$5,649$4,244$1,374 --- $12,886$74,851$91,863$41,120$13,134$24,466$83,423 ----- $153,195$126,236$207,044 Change $0$0$0$0$0 $1,374 $79,288$17,618$83,742$13,134$62,267$52,056$72,275 $206,323$295,456$376,138$249,840$106,711 $1,616,222 Supplement #1 impact NET CHANGE+ $207,044 - Adopted Budget Fund ADOPTED$1,616,222 SUPPLEMENT 1 | COST ALLOCATION PLAN Cost Allocation Summary: GF Cost Allocation Budget Changes by Fund 110 Streets Operating111 Transportation Benefit District120 Library135 Real Estate Excise Tax150 LTAC Fund180 Affordable Housing199 Community Service445 Water455 Sewer412 Stormwater417 OGWS423 Golf Park495 System Development Charges510 Fleet520 IT Operating540 PW Admin555 Engineering610 CustodialTOTAL up is - '30 end true - '29 '28 2029 then replace in 2030 - '27 '26 2. FUND PLANNED REPLACEMENTS Build reserves over an asset's useful life so funding is in place before replacement.EXAMPLE Contribute yearly 2026 Reserves stay in the replacement fund and a yearnot performed. Weighted device units (laptops, servers, phones)Measured department storage (SharePoint, NAS, GIS) 1. RECOVER IT OPERATING COSTS Pay for the staff, security, licenses, and infrastructure that keep the City running.DRIVERS 75%25% SUPPLEMENT 1 | IT ER&R PLAN What is an IT ER&R Plan?Equipment Revolving & Replacement (ER&R)A plan for two things: (1) recovering the City's ongoing IT operating costs from the funds that benefit, and (2) saving money each year so replacement devices can be purchased without a budget surprise. house - More devices, servers, and data create more IT work. Employees do not consume IT equally.Storage wasn't considered SharePoint, Laserfiche, GIS, and NAS storage require security, backups, and permissions. The old allocation ignored this entirely.Built in We had the data to better recover the cost already. Finance and IT jointly maintain the new plan using device data, storage data, and payroll distribution. 1 23 WHY IT NEEDED AN UPDATE person department with - GIS data. EXAMPLE direct software costs. THE PREVIOUS METHOD person department with 5 laptops paid - IT cost split by department headcount + the same as a 10 10 laptops, 4 phones, 3 servers, and heavy A 10 HEADCOUNT SUPPLEMENT 1 | IT ER&R PLAN Why we're updating related storage - access devices - dept SharePoint sites - managed storage - IN SCOPE FOR 2026 Devices & infrastructure Desktops, laptops, tablets, phones, thin clients, servers, firewalls, switches, access points City SharePoint, Laserfiche, NAS, Archiver, GIS KEY DISTINCTIONSLibrary public not citywide shared) Multi Replacement contributions future replacements driver allocation - funding is ready in advance. impact devices carry more weight. - - Two 75% weighted device units + 25% measured department storage.Weights reflect real IT effort Firewall 5.0, Server 4.0, Laptop 2.5, PC 1.0, iPhone 0.25. Complex, high Planned replacement funding Annual contributions build reserves before the planned replacement year Cleaner classification Assigned devices follow payroll splits. Department devices are 100% that fund. Citywide Shared devices and infrastructure are allocated to all participating funds at the same driver rate. SUPPLEMENT 1 | IT ER&R PLAN What's changing for 2026 METHODOLOGY HIGHLIGHTS Direction $3,722$1,950$4,014$3,178$8,754 - $67,239$55,561$29,791$16,631$12,433$30,594$60,717 --- Total Change $142$290$943$126$631$425 $1,422$1,534$1,790$5,103 - $23,317$32,879 TOTAL+ $60,717 Replacement Change $0$0 $497 $1,802$7,386$4,076$2,520$2,900$1,563$3,199 $21,173$45,116 Replacement $3,433$2,893$3,888$2,548$3,651 - $43,922$54,138$29,649$18,165$14,224$30,168$27,838 --- OH Change REPLACEMENT+ $32,879 $0$0 $495 $56,588$21,372$49,899$45,015$35,011$16,364$33,822 $234,515$493,081 Supplement #1 impact OH Adopted Budget - Fund OPERATING+ $27,838 SUPPLEMENT 1 | IT ER&R PLAN IT ER&R Summary: IT ERR Budget Changes by Fund 010 General Fund110 Streets Operating120 Library150 LTAC Fund199 Community Service445 Water455 Sewer412 Stormwater510 Fleet540 PW Admin555 EngineeringTOTAL NEW TOTAL$775,325 From updated GF cost allocation planFrom updated IT cost allocation planNew replacement reserve contribution + $425 + $83,423+ $30,168 + $114,017 +17.2% over the original 2026 budget INCREASE+ $114,017 Equipment Maint.Replacement -- GF Admin O/H chargesIT ER&R IT ER&R Total allocation adjustments ORIGINAL BUDGET$661,308 SUPPLEMENT 1 | PW ADMIN OVERHEAD PW Admin Overhead Increase PW Admin overhead is allocated by FTE. Higher GF overhead and IT costs affect PW Admin, which then causes an increase to the contributing funds.INCREASE BREAKDOWN $4,749 $30,000$20,000$13,000 Amount $165,000$280,000 $1,173,762$1,500,000 $3,186,511 Library to TylerLibrary to Tyler -- Project Skatepark MuralSecurity UpdatesWashington St. sidewalk/tree replacementSheridan ChipsealAccessible Play Chezemoka ParkLawrence St Lawrence St Outfall Granting Agency ArtsWAState & Local Cybersecurity Prog.WCIA Risk ReductionWA Transportation Imp. BoardWA Emp Security OfficeDept. of EcologyPublic Works BoardDept. of Ecology Total new grants SUPPLEMENT 1 | NEW GRANTS Grant Funding New grants received since budget adoption grant $2,484,479 - Non Other new spending $1,246,670 ACTUAL NEW SPENDING$3,571,827 Excludes transfers & cost allocations related $1,087,348 - TOTAL EXPENDITURE INCREASE$6,747,261 Including internal transfers & cost allocations SUPPLEMENT 1 | SUMMARY Supplement #1 Summary The total expenditure increase is larger than actual new spending. The headline number includes internal transfers and cost allocations that reshuffle money between funds rather than add new obligations.ACTUAL NEW SPENDING BREAKDOWN By source Grant By type From carryforwards $2,325,157 Agenda Bill AB26-046 Meeting Date: April 20, 2026 Agenda Item: IX.E Regular Business Meeting Workshop/Study Session Special Business Meeting Submitted By: Steve King, PW Director Date Submitted: April 20, 2026 Department:Public Works Contact Phone:360-379-5090 SUBJECT:Fire Hydrant Connection Agreements - OGWS CATEGORY: BUDGET IMPACT: N/A ConsentResolutionExpenditure Amount:$ Staff Report Ordinance Included in Budget? Yes No Contract Approval Other: Motion Public Hearing (Legislative, unless otherwise noted) 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: Choose an item. SUMMARY STATEMENT: Over this past year, several opportunities have arisen to add fire hydrants to the Olympic Gravity Water System (OGWS)pipeline for mutual benefit of the City and property owners. Jefferson Transit Authority (JTA) has requested a Fire Hydrant at their Four Corners facility to provide necessary fire flow to support their new maintenance facility. In this location, the Jefferson County PUD water system lacks fire flow capacity. City staffalsoanticipates a request from the Port of Port Townsend for a hydrant to be located at the NW Timber Cooperative site. Several fire hydrants already exist on the system in Glen Cove and one at the Jefferson County Airport. Those hydrants are owned by the City. City staff issupportive of entering into agreements with property owners for hydrants particularly in locations where there is an opportunity to drain water from the pipeline or flush the pipeline. For example, JTA will allow the City to drain water into their stormwater pond. This is a great benefit to the OGWS system as locations to drain substantial volumes of water are limited. PTMC 13.18.020 authorizes the City Council tocontract for water supply. This section was originally developed to encourage regional water use to defray the costs of the OGWS system and presently, there is only one contract with the Port Townsend Paper Mill. Given, fire hydrants do not use water except in the case of an emergency, a fire hydrant connection agreement is different from a water supply agreement. Nonetheless, the provisions of the chapter apply.As a matter of principle, fire hydrants along the OGWS would be privately owned and maintained and all costs to install would be borne by the benefiting property owner unless there was significant benefit to the OGWS system.Additionally, fire hydrant connections would need to be installed according to engineering details to protect the integrity of the OGWS system. City staff recommendsthat City Council authorize the City Manager to enter into fire hydrant connection agreements with property owners along the OGWS for mutual benefit. City staff will likely bring a code update back to Council to memorialize this Council authorization, time permitting. ATTACHMENTS: CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Motion to authorize the City Manager to enter into fire hydrant connection agreements with property owners. ALTERNATIVES: Take No Action Refer to Committee Refer to Staff Postpone Action Remove from Consent Agenda Waive Council Rules and approve Ordinance ____ Other: Absent floor conf hambers nd LocationChambers Jeff Co ChambersChambers Chambers PT Golf Park JCPHChambers C Chambers ChambersChambersChambers Salish Coast Commons Chambers2 s Trails - – ’ loyee ations Cappy , to Add 2026 ) a Public Emp k Jefferson County – Reading st 1 commendation – ental Budget Appropri ePlan and Development www.cityofpt.us 2nd reading Performance of – appointments website Report Hydrant Connections re i City Comprehensive ng Commission R Item Public Hearing ting 2026 Supplem See Supplemental Set SCHEDULE ond Council and Bond Underwriter authorization st Proclamation: Parks Appreciation Week and National Library Week–Executive Session Special Presentation: Rhody WeeRAISE agreement Council AuthorizationPROS adoption hearing B Appointments/ReJefferson Land Trust Right of Way VacationPlanniAnnual Regulations, 2026 PCD Workplan Priorities AdopTBD Annual OGWS F1Resolution of Support for Farmers Market Planning Permanent SpaceSolid Waste Management Plan Agenda change. Community Survey Presentation Workshop at Salish Coast Commons Quarterly Workplan Review/Council Committee Updates to MEETINGS TentativeCANCELED subject CITY only, draft is isory Committee schedule (This ging Tax Adv City Council Workshop Interactive City Council Workshop at Meeting - of TypeCity Council Business Meeting Jefferson County Housing Fund Board Special Session LodPlanning CommissionComprehensive Plan Celebration Climate Action Committee Parks, Recreation, Trees and Trails Advisory Bd City Council Business Meeting Historic Preservation Committee Council Infrastructure and Development CommitteeArts CommissionCouncil Finance and Budget Committee Special Session MeetingSalish Coast Elementary Loding Tax Advisory Committee Equity, Access, and Rights Advisory Board Time6:00 2:303:006:302:003:004:30 6:00 3:003:003:003:00 6:00 3:0012:30 DateApril 20 April 22April 23April 23April 25April 28April 28 May 4 May 6May 7May 11 May 11 May 12May 14 May 5 Day Mon WedThursThursSatTuesTues Mon TuesWedThursMon Mon TuesThurs se hambers Chambers Chambers C Jefferson County CourthouChambersChambers Port Pavilion Chambers Jeff Co ChambersChambers \\ Mill Road LS – PT School District on Lincoln Building Public Services Center Plan Presentation reading -– nd 2 – CITY OFFICES CLOSED - HOLIDAY Public Works Week Proclamation and renovation status PROS Adoption Swan School Proclamation Special presentation Special presentation Jefferson County MOU ry ry Committee Intergovernmental - County Loding Tax Adviso Civil Service Commission Planning Commission City Council Business Meeting Special Session Lodging Tax Adviso(Joint meeting with Committee)Council Culture and Society Committee Special Session CouncilCollaboration Group Parks, Recreation, Trees and Trail Advisory Board Jefferson County Housing Fund Board Planning Commission 4:156:30 6:00 1:303:00 3:00 4:302:306:30 May 14May 14 May 18 May 19May 21 May 21May 25 May 26May 27May 28 ThursThurs Mon TuesThurs ThursMon TuesWedThurs ЋЉЋЏ /ƚƩĻ Cƚĭǒƭʹ /ƚƓķǒĭƷ ğ ĭƚƒƒǒƓźƷǤΏǞźķĻ ƭǒƩǝĻǤ Ʒƚ ĬĻƷƷĻƩ ǒƓķĻƩƭƷğƓķ ĭƚƒƒǒƓźƷǤ ƓĻĻķƭ ğƓķ ŭğźƓ źƓƭźŭŷƷƭ źƓƷƚ ƷŷĻ ķźǝĻƩƭźƷǤ ƚŅ ƚƦźƓźƚƓƭ͵ INNOVATE OUR SYSTEMS, STRUCTURES & PROCESSES - Set the City and community up for sustained success through process and BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k structure improvements and optimization PEL/interdepartmental coordination Permitting procedures, configuration, Smartgov efficiency, leveraging 2025 videos Fire inspections and business license integration Permitting Fees Update Purchasing Policy Simplification AI Policy (complete) Police final push toward agency accreditation ENVISION OUR SUSTAINABLE FUTURE AND DELIVER OUR PRIORITY INITIATIVES - Deliver the 2025-2045 Comprehensive Plan and BUDGET IMPLICATIONS STATUS FSI2025 Est: $=$1k, $$=$10k, $$$=$100k associated priorities to catalyze a financially, socially, and environmentally sustainable future Implement Housing/Land Use Elements of the Comprehensive Plan, including: Continue to develop, implement, and refine code and comp plan changes to help unlock and inspire affordable, dense, quality infill development Implement the community's vision for Evans Vista neighborhood and deliver infrastructure to make it development-ready Develop RFP for Evans Vista phased development Cherry St sale under new Comp Plan zoning Explore options presented in the housing white paper for implementation - fee structures, incentives, infrastructure extensions Economic Development - Housing Infill Economic Development - Improve commercial intensity, beyond commercial corner store/shop allowances in residential zones Glen Cove Sewer Study - next steps - Interlocal Agreement with Jeff. Co. Await State Shoreline Master Program comments and make directive changes after state process Revisit 2009 Housing Property Inventory Support and coordinate with providers and partners on the unhoused population's needs Implement Transportation Element of the Comprehensive Plan, including: Mill Road Roundabout funding/grant application Streets improvements concept plans (like Washington St, San Juan/F, Hastings, Admiralty) - Multimodal Arterial Cohesive Study Puget Sound to Pacific/Olympic Discovery Trail - in-town connection to Fort Worden and land purchase near Eaglemount (City Lake) Safe Route to Schools Neighborhood Connections Study ADA Transition Plan Update - Parks, Facilities, Right of way Continue to refine Engineering Design Standards Deliver Lawrence Street project (Harrison to Walker) Implement 2026 chip seal program (Sheridan and Monroe) Transportation Benefit District implementation, including street repair, grants, active transportation Update STIP (incorporate active transportation plan, multimodal arterial street, RAISE grant, and saferoute planning studies) Implement Parks Element of the Comprehensive Plan and Facilities/Library/Arts & Culture (Community Services) Initiatives: Work with JLT - Cappy's Preservation Implementation, 80 acres Address parks, facilities, library, and arts & culture funding needs and prioritize future phased investments Establish ER&R Facilities program and budget Consider implementing Library's Level of Service Plan Option #2 Determine an approach to deer management in partnership with State Fish & Wildlife Anticipate RCO grant application for 2027 cycle Build golf park playground Explore collaboration/LOA with Jefferson County to increase recreation opportunities Inventory public art and consider links to functional plans, maintenance planning for artworks, infusion of art into infrastructure projects DNR grant implementation New Public Works facility design Undertake master planning of golf park in collaboration with Friends of the Golf Park Undertake master planning of west-side park Facilities Updates - City Hall HVAC, Mountain View HVAC/parking, Library HVAC , City Hall and Library elevators (subject to budget and grants) Trails (Volunteer Program, street ends, loop trail) Parks upgrates - Kah Tai Restrooms, Chetzemoka kitchen shelter, demolition of Golden Age Club and Parks house (subject to budget) Collaborate with related agencies to stabilize and plan for the sustainable future of Fort Worden State Park Reestablish the 1% for the Arts support for all City public works projects in line with the City Code (complete); implement program Other Priorities - Deliver on Water/Sewer/Storm Priorities: Capital Facilities Plan Update (2027-2033) - Big effort incorporating all new plans Standpipe Reservoir Recoating Design 5ĻƌźǝĻƩ źƓƷĻŭƩğƷĻķͲ ƭƷƩğƷĻŭźĭ ğƓķ ƭǒƭƷğźƓğĬƌĻ ǝğƌǒĻ ŅƩƚƒ ƷŷĻ /źƷǤ ƚƩŭğƓźǩğƷźƚƓ Ʒƚ ƷŷĻ ĭƚƒƒǒƓźƷǤ ĬǤ ķĻǝĻƌƚƦźƓŭ ğƓķ ƌĻǝĻƩğŭźƓŭ ƦğƩƷƓĻƩƭŷźƦƭͲ ĻƓŷğƓĭźƓŭ ƭƷğŅŅ ğƓķ ƷĻğƒ ƦĻƩŅƚƩƒğƓĭĻͲ ƦƩƚǝźķźƓŭ ĭƌĻğƩ ķźƩĻĭƷźƚƓͲ ƓǒƩƷǒƩźƓŭ ķĻĻƦ ĭƚƒƒǒƓźƷǤ ƦğƩƷźĭźƦğƷźƚƓ ğƓķ ĻƓŭğŭĻƒĻƓƷ ğƓķ ĻƓƭǒƩźƓŭ ĭƚƓƷźƓǒƚǒƭ ķĻƌźǝĻƩǤ ƚŅ ƨǒğƌźƷǤ ƭĻƩǝźĭĻƭ Λ/źƷǤ ağƓğŭĻƩγƭ hŅŅźĭĻΜ Marketing the City to the visiting public working with LTAC, contractors, and community partners to do so Special projects, communication, engagement and advocacy on behalf of the City and community 5ĻƌźǝĻƩ ƨǒğƌźƷǤͲ ĻŅŅźĭźĻƓƷ ğƓķ ĭǒƭƷƚƒĻƩΏŅğĭźƓŭ ƦĻƩƒźƷƷźƓŭͲ ĭƚķĻ ĻƓŅƚƩĭĻƒĻƓƷͲ ĭǒƩƩĻƓƷ ğƓķ ƌƚƓŭΏƷĻƩƒ ƦƌğƓƓźƓŭ Ʒƚ ƦƩƚƒƚƷĻ ƚƦƦƚƩƷǒƓźƷǤ ğƓķ ƨǒğƌźƷǤ ƚŅ ƌźŅĻ źƓ tƚƩƷ ƚǞƓƭĻƓķ ΛtƌğƓƓźƓŭ ε /ƚƒƒǒƓźƷǤ 5ĻǝĻƌƚƦƒĻƓƷΜ $$$ ongoing and one-time tƩƚǝźķĻ ƩĻƨǒźƩĻķ ğƓķ ķĻƭźƩĻķ ŅźƓğƓĭźğƌ ƩĻƦƚƩƷźƓŭ ğƓķ ƦƩğĭƷźĭĻƭͲ ƭƷĻǞğƩķ ƦƩĻƦğƩğƷźƚƓ ğƓķ ĭƚƌƌĻĭƷźǝĻ ƚǝĻƩƭźŭŷƷ ƚŅ ĬğƌğƓĭĻķ ŅǒƓķƭ ğƓķ ĬǒķŭĻƷƭ ğƓķ źƓŅƚƩƒğƷźƚƓ ƷĻĭŷƓƚƌƚŭǤ ƓĻĻķƭ Ʒƚ ĻƓƭǒƩĻ ƷŷĻ ƭǒĭĭĻƭƭ ƚŅ ğƌƌ ķĻƦğƩƷƒĻƓƷğƌ ğƓķ ƚƩŭğƓźǩğƷźƚƓğƌ ğĭƷźǝźƷźĻƭ͵ ΛCźƓğƓĭĻ ε ĻĭŷƓƚƌƚŭǤ {ĻƩǝźĭĻƭΜ Coordinated front desk internal and external service via the Public Experience Liaisons Management of city Investment and debt according to government regulations Fiscal responsibility and management of city resources Updated Fee Schedules ƚ ǒƦƌźŅƷ ƚǒƩ ĭƚƒƒǒƓźƷǤ ƷŷƩƚǒŭŷ ƩĻğķźƓŭͲ ƌĻğƩƓźƓŭͲ ĭƚƓƓĻĭƷźƚƓ ğƓķ ĭƩĻğƷźǝźƷǤ Λ\[źĬƩğƩǤΜ Ώ ƓƚƷĻ ƷƩğƓƭźƷźƚƓ Ʒƚ /{5 Ǟ źƓƷĻŭƩğƷĻķ ƭƷğƷĻƒĻƓƷ Ʒƚ ĭƚƒĻ ƚ ǞƚƩƉ źƓ ƦğƩƷƓĻƩƭŷźƦ ǞźƷŷ ƚǒƩ ĭƚƒƒǒƓźƷǤ Ʒƚ ƦƩƚǝźķĻ ğ ƭğŅĻ ğƓķ ĭƚƒƦğƭƭźƚƓğƷĻ ĻƓǝźƩƚƓƒĻƓƷ ǞŷźƌĻ ƩĻķǒĭźƓŭ ĭƩźƒĻ ğƓķ ƷŷĻ ŅĻğƩ ƚŅ ĭƩźƒĻ ΛtƚƌźĭĻΜ 5ĻǝĻƌƚƦ ğƓķ ķĻƌźǝĻƩ źƓƓƚǝğƷźǝĻ ƭƚƌǒƷźƚƓƭ ƷŷğƷ ğƌƌƚǞ ƷŷĻ /źƷǤ Ʒƚ ƒğƉĻ ğ ƦƚƭźƷźǝĻ ƌĻğƦ ŅƚƩǞğƩķ źƓ ķĻǝĻƌƚƦźƓŭ ğƓķ źƓǝĻƭƷźƓŭ źƓ ƦĻƚƦƌĻ ğƓķ ƦĻƩŅƚƩƒğƓĭĻͲ ķƩźǝźƓŭ ĭƚƚƩķźƓğƷĻķ ƷĻğƒ ĻǣĭĻƌƌĻƓĭĻͲ ĭƚƓƷźƓǒƚǒƭ źƒƦƩƚǝĻƒĻƓƷͲ ğƓķ ğĭĭƚǒƓƷğĬźƌźƷǤ ΛtĻƚƦƌĻ ε tĻƩŅƚƩƒğƓĭĻΉIwΜ Employee engagement, including development and delivery of an engagement survey and accompanying manager follow up approach tƩƚǝźķĻ ƨǒğƌźƷǤ ğƓķ ƩĻƌźğĬƌĻ źƓŅƩğƭƷƩǒĭƷǒƩĻ ƷŷğƷ ǒƓķĻƩƦźƓ ğ ŷĻğƌƷŷǤ ƭƚĭźğƌͲ ĻƓǝźƩƚƓƒĻƓƷğƌ ğƓķ ĻĭƚƓƚƒźĭ ŅğĬƩźĭ ğƓķ ƭǒĭĭĻƭƭ ƚŅ tƚƩƷ ƚǞƓƭĻƓķ ğƓķ ƚǒƩ ĭƚƒƒǒƓźƷǤ Transportation engineering (Non-motorized, traffic, accident analysis, grant writing)