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HomeMy WebLinkAbout110810CITY OF PORT TOWNSEND MINUTES OF THE SPECIAL BUSINESS MEETING OF NOVEMBER 8, 2010 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in regular session the eighth day of November, 2010, in the Port Townsend City Council Chambers of City Hall, Mayor Michelle Sandoval presiding. ROLL CALL Councilmembers present at roll call were David King, Laurie Medlicott, Kris Nelson, George Randels, Catharine Robinson, Michelle Sandoval, and Mark Welch. Staff members present were City Manager David Timmons, City Attorney John Watts, Development Services Director Rick Sepler, Public Works Director Ken Clow, Finance Director Michael Legarsky, and City Clerk Pam Kolacy. CHANGES TO THE AGENDA There were no changes to the agenda. COMMENTS FROM THE PUBLIC Public comment There were no comments from the public. CONSENT AGENDA Motion: George Randels moved to approve the following items on the consent agenda: Bills Claims and Warrants- Vouchers 112912 in the amount of $7, 950.00; Voucher 112913 through 112920 + EFTs in the amount of $188,698.07. Approval of minutes: October 25, 2010 Special Business Meeting; October 25, 2010 Workshop Meeting; November 1, 2010 Business Meeting. Housekeeping Revisions to Recently Adopted Ordinance 3042 -Fences, Walls, Arbors per attachment dated Nov. 3, 2010. Authorize City Manager to enter into a Contract with the Kelly Brandon Design, Ilium Associates and Edquist Davis Exhibits to provide consulting services for the Port Townsend Wayfinding Project in an amount not to exceed $200,000. Authorize City Manager to execute necessary documents to contract with Olbrechts and Associates for hearing examiner services, Phil Olbrechts designated as the hearing examiner, with backup in the event of unavailability provided by an associate. David King seconded. Vote: motion carried unanimously, 7-0 by voice vote. PUBLIC HEARING City Council Special Business Meeting November 8, 2010 Page 1 of 6 Ordinance 3049, Adopting the Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2011 Mayor Sandoval reviewed the rules of procedure for public hearings. Council members did not have any financial or property interests to disclose although Ms. Nelson stated she is the president of the Jefferson County Chamber of Commerce which requests and receives funding from the City. Mr. Watts concurred that since no personal gain would occur from council action on the budget Ms. Nelson would not be disqualified from participating. Mr. Timmons reviewed the 2011 Preliminary Budget with highlights including no overall cost of living increase for employees, placeholder for higher health care costs while the city shops for alternative plan to lower costs; two positions consolidated into one and a .5 decrease in DSD staff for total of 1.5 fewer full time equivalents; completed capital budget; operating budget primarily status quo; reserves depleted but within target goal percentage as a result of intentional allocation of funds to support economic development efforts this year. There was no public comment. No written comments were submitted prior to the hearing. Mr. Timmons stated that the Finance and Budget Committee will review utility rates. The funds from the voter approved ballot measure will be encumbered to fund the Fire District interlocal and county parks. During the next year there will be studies and analysis of a potential park district. No additional funds are available yet for the street fund. The final budget will be adjusted to reflect additional funds available through the focal sales tax levy and the failure of the state {iquor initiatives. Individual community services contracts will be approved by Council rather than granting blanket authority for the City Manager to negotiate. Funding will be the same or lower than 2010 but more services will be requested from those organizations receiving funding. Mr. Timmons stated that non-profit funding is targeted at $118,000 for the YMCA (down from $138,000) with negotiation to cover the former Big Brothers and Sisters mentorship program within that contract; Boiler Room funding will be below $10,000 as they transition away from city funding support; the Chamber and Visitors Center will maintain the same funding but reallocate dollars to develop a part time position for the convention and visitors bureau; Main Street funding will be the same but the contract will include services such as working with merchants on behalf of the city during the replacement of downtown sidewalks. All these contracts will be approved individually by the Council. Council discussion followed. Topics included real estate tax revenue figures and whether they have been or should be adjusted to reflect current economy (numbers City Council Special Business Meeting November 8, 2010 Page 2 of 6 are being revised downward per Finance Director); keeping general fund reserve within established policy (5-8%); positive effect of fast year of library levy collections on general fund (elimination of general fund support of the library); new practice of attributing revenues directly to separate funds without passing them through general fund; how Visitor Information Center funds are accounted for in the budget. Mr. Timmons reviewed the various funds and their reserve balances. He noted that cash reserves have been somewhat eroded by the phase in of the Library levy (General Fund has been making up the difference). Staff will provide a property tax breakdown showing disbursement of the approximately $2.7 million to debt service, contingency, Fire/EMS, community services, library and pension funds. Changes to the budget as a result of the recent election will also be incorporated prior to second reading and adoption. Mayor Sandoval declared the public hearing concluded. Motion: George Randels moved to approve first reading of Ordinance 3049, Adopting the Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2011. David King seconded. Vote: motion carried unanimously, 7-0 by voice vote. UNFINISHED BUSINESS Ordinance 3046, appropriatiing the Sum of $79,878 to the General Fund; $7,478 to the Contingency Fund; $2,400 to the Drug Enforcement and Education Fund; $35,754 the Library Fund; $4,000 to the Public Works Admin & Engineering Fund; $3,577 to the Lodging Tax Fund; $126,513 to the Water/Sewer Utility Fund; $508,442 to the Transmission Line Replacement Fund; $10,100 to the Golf Course Fund and making findings and declaring an emergency. Mr. Legarsky reviewed the packet materials and noted that since the first reading of the ordinance, he has added more descriptors to the text of the ordinance as requested by Council. The numbers in the ordinance have not changed. There was no public comment. Motion: David King moved to approve Ordinance 3046, appropriating the Sum of $79,878 to the General Fund; $7,478 to the Contingency Fund; $2,400 to the Drug Enforcement and Education Fund; $35,754 the Library Fund; $4,000 to the Public Works Admin & Engineering Fund; $3, 577 to the Lodging Tax Fund; $126, 513 to the Water/Sewer Utility Fund; $508,442 to the Transmission Line Replacement Fund; $10,100 to the Golf Course Fund and making findings and declaring an emergency. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. City Council Special Business Meeting November 8, 2010 Page 3 of 6 NEW BUSINESS Ms. Robinson proposed moving up Item C (Deferral of Building and Development Permit Fees ...) to the first item under New Business as representatives of the public are present to comment on that item. There were no objections. Ordinance 3052, Providing for Deferral of Building and Development Permit Fees and Utility Connection Charges for Low Income Housing Projects and Re- Codifying Deferrals for System Development Charges. Mr. Watts reviewed the packet materials. He agreed with a suggested change on page 2 of Exhibit A, in second paragraph under "C" that "waived" should be changed to "deferred" to reflect the intent of the ordinance. During Council questions and discussion, questions were raised about the 10 year limit on repayment of the deferred fee if an affordable housing unit reverted to a market rate unit, about the limitation of program eligibility to four dwelling units per applicant per year, and whether the definition of "low income" should be further clarified. Public Comment Jamie Maciejewski, Director of Habitat for Humanity gave an overview of Habitat's process. She indicated that she supports the idea of having the repayment clause in perpetuity but would like to have the maximum of four dwelling units per agency per year raised or eliminated. Council held extensive discussion about the questions considered earlier. Other points brought up included the possibility of setting up a revolving fund with repayment of deferred fees; impact to building permit revenues if there is no cap on deferrals per year; limiting deferral fees by cumulative amount as a percent of the budget rather than by number of units affected; pros and cons of keeping housing in low income status for perpetuity versus having some low income housing evolve into market rate housing and thus avoiding perpetual pockets of low income units. Motion: Mark Welch moved to approve first reading of Ordinance 3052 -Providing for Deferral of Building and Development Permit Fees and Utility Connection Charges for Low Income Housing Projects and Re-Codifying Deferrals for System Development Charges and refer this to the CD/LU Committee for recommendation prior to adoption. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. RECESS Mayor Sandoval declared a recess at 8:10 p.m. for the purpose of a break. City Council Special Business Meeting November 8, 2010 Page 4 of 6 RECONVENE The meeting was reconvened at 8:22 p.m. Ordinance 3050, providing for the issuance and sale of $[3,815,000] par value of Limited Tax General Obligation Bonds, 2010, of the City to provide the funds with which to pay the cost of improvements to sidewalks, utilities and the library; and fixing the terms and covenants of the bonds. Mr. Timmons reviewed the packet materials. There was no public comment. Motion: Mark Welch moved to approve first reading of Ordinance 3050, providing for the issuance and sale of $(3, 815, 000] par value of Limited Tax General Obligation Bonds, 2010, of the City to provide the funds with which to pay the cost of various capital improvements; and fixing the terms and covenants of the bonds. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. Ordinance 3051, removing Public Works Department fees in PTMC 3.36.020 and 12.16.060 from the Municipal Code and amending 2.76.031 on fees, and adopting and amending Public Works Department fees and adding to and amending Development Services Department fees iin Resolution 10-035. DSD Director Rick Sepler reviewed the packet materials. There was no public comment. Motion: Mark Welch moved to approve first reading of Ordinance 3051, Deleting from the Port Townsend Municipal Code, Section 3.36.020 Public Works and Utility Billing Service Fees Schedule, and Amending Sections 12.16.060 Fees Relating to Filing of Plats, 2.76.031 Relating to Fees and Sections 12.04.090b, 13.14.030b, 13.23.030b Relating to Tier 1 Fees, and Replacing Code Sections Referring to Chapter 3.36 Fees to Fees Adopted by Council Resolution. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. Purchase of Markley Property (Block 1, Motorline Addition) -Howard Street Improvements/Mitigation and 20th Street Improvements City Attorney John Watts reviewed the packet materials. There was no public comment. Motion: David King moved to authorize the City Manager to negotiate terms for the City Council Special Business Meeting November 8, 2010 Page 5 of 6 property purchase at $40,000, with funding from an interfund loan as outlined in the agenda packet. George Randels seconded. Vote: motion carried unanimously, 7-0 by voice vote. ADJOURN There being no further business, the meeting was adjourned at 9:17 p.m. Attest: i' ~ l ~`~~r. ~ ~l`. j 1 ~. ~_ ~:. Pamela Kolacy, City Clerk MMC City Council Special Business Meeting November 8, 2010 Page 6 of 6