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HomeMy WebLinkAbout11291999PORT TOWNSEND CITY COUNCIL MINUTES OF THE SPECIAL SESSION OF NOVEMBER 29, 1999 The City Council of the City of Port Townsend met in special session this twenty-ninth day of November, 1999, at 6:30 p.m. in the Port Townsend Council Chambers of City Hall, Mayor Forrest Rambo presiding. ROLL CALL AND PLEDGE OF ALLEGIANCE Councilmembers present at roll call were Joe Finnie, Allen Frank, Sydney Lipton, Geoff Masci, Forrest Rambo and Alan Youse. Vem Garrison was excused. Staff members present were City Manager David Timmons, Interim City Attorney Steven Olsen, Finance Director Michael Legarsky, Financial Analyst Gary Leaf, Interim BCD Director Bob Leedy, Public Works Director Bob Wheeler, and City Clerk Pam Kolacy. PRIORITY PRESENTATION Ms. Robin Pollard, Director of the Washington State Tourism Office PUBLIC HEARINGS UTILITY RATES FOR YEAR 2000 City Manager David Timmons gave a general introduction regarding the budget process. He discussed level of service and quality of service and a budget process that would overlap the fiscal year. A five percent reduction in operations and maintenance was achieved in the budget and rate recommendations reflect that type of reduction. There are however a number of capital items needed and a certain level of debt coverage must be maintained. He noted that water and sewer is a combined fund and has various components. Because of new accounting systems, we are now able to isolate the city's investment in the Tri-Area water system in terms of capital budget and day to day operations. It is prudent for the city to set a rate of return at an appropriate level to protect the investment and risk involved in the Tri-Area water system. He directed the council to the worksheet dated November 29, 1999, which outlines five alternatives which will lead to achieving the council's financial goals for 2000 and the next three years. This includes maintaining the debt service ratio at 1.5 and maintaining cash reserves. He recommended considering a multi-year plan which can be modified and adjusted. Financial Analyst Gary Leaf did the staff presentation and provided several items of supporting documentation. Mr. Garrison arrived at 6:12 p.m. Mayor Rambo opened public testimony. City Council Minutes Page 1 November 29, 1999 Speaking in favor of any alternative: None Speaking in opposition to any alternative:: Dennis Bates: opposed to 10% increase across the board for county residents. He stated county residents already pay higher fees for base rate and usage now. Tap fees have also increased. County residents cannot vote for representation on the city council; if the city can justify increases to the county rates they should explain the justification and go to a vote of the people. Speaking neither for nor against. Byron Ruby: 1) what brings the amount up to 10% in tri-area; county residents have been paying into city hoppers; if rates are increased, he believes an individual notice should be sent to each customer explaining the reasons behind the increase; 2) opposed stormwater fees. Michael Anderson: supports reduction in stormwater fee to offset a modest increase in utility rates. John Ebner: first questioned solid waste contract and inquired whether the meter reader position was included in the year 2000 budget. He then cautioned against option 4, in which rates vary widely over the next several years. He stated he would prefer a more balanced approach like option 3 as spreading it out seems a more rational approach which would be easier for customers and be in place to react to unfunded mandates. He noted we are still paying for former neglect of the system and have significant increased costs. He also asked if there staff had recommended one of the alternatives presented. [Answer: no, it is a council policy decision] Bob Sokol: as a current and former elected official, he stated elected officials don't enjoy raising rates. He noted the city is slowing down and will eventually stop the flow of utility funds into the general fund so that rate increases won't be so great in the future and this is a positive measure. He added that an attempt was made years ago to make the tri area pay for service, but the tools were not then in place. He indicated that it is fair that the Tri-Area pay for their usage. Mayor Rambo closed the public hearing at 7:35 p.m. Mr. Timmons then noted that no rate changes for stormwater or garbage have been proposed. Consensus was to divide the question, and discuss Tri-Area rates first. Motion: Mr. Finnie moved to approve a 10% water rate increase in the Tri-Area. Mr. Frank seconded. The motion failed 4-3 by voice vote, with councilors Garrison, Masci, Youse, and Rambo opposed. City Council Minutes Page 2 November 29, 1999 Motion: Mr. Garrison moved to increase the charges to the Tri-Area 10% and to provide incremental increases to bring the rate of return to the point of 9% within the next five years, those increases to be spread out equally over the second, third, fourth, and fifth years. Mr. Youse seconded. The motion failed, 4-3, with councilors Rambo, Finnie, Masci, and Lipton opposed. Motion: Mr. Rambo then moved that the Tri-Area rate increases be the same as the city's for the first year and any subsequent years.: The motion died for lack of a second. Mr. Garrison then moved to increase the Tri-area water rates by 10% in the year 2000, and that the subsequent increases for whatever option chosen for the city would be added to that amount and that an additional annual increase be made in the second, third, fourth and fifth years in sufficient percentage to increase the rate of return to 8% by the fifth year. Mr. Youse seconded. The motion carried, 5-2, with councilors Masci and Rambo dissenting. Motion: Mr. Finnie moved that the City Manager be instructed to draft an ordinance in line with Option #3 of the November 29, 1999 memo, which would provide a 2.0% increase in city water- sewer rates per year for each of five years. Mr. Frank seconded. Mr. Garrison proposed a friendly amendment that the revenue from the 2% increase be set aside and spent only by a super majority vote of the council. Mr. Finnie accepted the friendly amendment. Vote on the amended motion: The motion failed, 4-3, with councilors Rambo, Youse, Masci and Lipton opposed. Motion: Mr. Masci moved to adopt option "4.5" somewhere between options 4 and 5, which would provide a 1.75% debt service coverage with the funding received subject to expenditure by a super majority vote of the council. Mr. Garrison seconded. Vote: The motion failed, 4-3, with councilors Youse, Frank, Finnie and Rambo opposed. Motion: Mr. Youse moved to adopt Option 1, no rate increases over the next five year period.. Mr. Masci seconded. After some discussion, Mr. Youse withdrew his motion Motion: Mr. Youse then moved to adopt option 1 with the intention that the city not fall below the 1.5% debt coverage ratio but that it would be done by modifying the budget. Mr. Masci seconded. City Council Minutes Page 3 November 29, 1999 The motion failed 6-1, with Mr. Youse in favor. Motion: Mr. Garrison moved to adopt option 4 from the November 29, 1999, memo, with water-sewer rate increased of 0.0% in year 2000, 07% in 2001, 6.0% in 2002, 1.3% in 2003, and a 1.9% reduction in 2004, with the drive being to maintain minimum capital reserves of 1.5% as required for bonding status. Mr. Lipton seconded. The motion carried 5-2, with councilors Frank and Rambo opposed. RECESS Mayor Rambo recessed the meeting for a break at 8:35 p.m. RECONVENE The meeting was reconvened at 8:52 p.m. Mr. Frank moved that no increases for garbage or stormwater be instituted. Mr. Masci seconded. The motion carried, 5-2, with councilors Rambo and Finnie dissenting. STREET VACATION LUP 99-69 (Epling -continued from October 18 and November 1 Mayor Rambo noted that public testimony has been closed and the council has now received answers to various questions posed during the initial hearings and deliberations. Mr. Masci moved to reject the staff's recommendation and approve the street vacation with a retention of easement rights by the city of the central 25 feet (12.5 per adjacent property owner and preservation of the trees 6" and over in diameter, breast height within the entire corridor. Mr. Garrison seconded. Mr. Youse proposed a friendly amendment that the setbacks on the bordering property be maintained as if the property were in city ownership. Mr. Garrison accepted the amendment. Vote on amended motion: Motion carried 5-2 by voice vote, with councilors Youse and Rambo dissenting. NEW BUSINESS Lodging Tax Advisory Committee Funding Recommendations Mayor Rambo, Chairperson of the committee presented the recommendations of the committee City Council Minutes Page 4 November 29, 1999 for funding for the year 2000. Presentations from Applicants: Don White: Arts Commission Aletia Alvarez: Wooden Boat Foundation Tracey Thompson: Centrum Northwest Maritime Center: Dave Robison Lynne Sterling: Port Townsend Victorian Festival Bob Sokol: Port of Port Townsend Mari Mullen Main Street: Holiday promotion Mayor Rambo noted that the council is seeking legal clarification regarding the use of LTAC funds in relation to projects. When the issue is clarified, the council will take action on the recommendations. ADJOURNMENT There being no further business, the meeting was adjourned at 10:02 p.m. Attest: Pamela Kolacy, CMC City Clerk City Council Minutes Page 5 November 29, 1999