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CITY OF PORT TOWNSEND
CITY COUNCIL
MINUTES OF THE REGULAR SESSION OF NOVEMBER 15, 2004
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
The City Council ofthe City of Port Townsend met in regular session this fifteenth day of
November, 2004, at 6:30 p.m. in the Port Townsend temporary Council Chambers at
Building 204, Fort Worden State Park, Mayor Catharine Robinson presiding.
ROLL CALL
Council members present at roll call were Frank Benskin, Freida Fenn, Kees Kolff, Geoff
Masci, Laurie Medlicott, Catharine Robinson, and Michelle Sandoval.
Staff members present were City Manager David Timmons, City Attorney John Watts,
Public Works Director Ken Clow, DSD Manager David Wright, Water Quality Manager
Bob LaCroix, and City Clerk Pam Kolacy.
CHANGES TO THE AGENDA
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Mayor Robinson stated that a short executive session regarding litigation would be added
to the agenda.
Ms. Sandoval requested that Advisory Board Appointments be removed from the agenda.
Mr. Benskin requested that Ordinance 2871, Historic Preservation Guidelines, be pulled
from the agenda. He stated that he believes that another workshop and/or study session
was to be held before final action.
Mr. Masci agreed, stating that he does not believe public notice for the item was
sufficient.
Ms. Sandoval stated that the council has had a short time to review this but at least
discussion could be held and Council questions asked.
Mr. Kolff agreed there could be discussion without a decision.
City Attorney Watts noted that there is a time parameter for action on the matter
(December 21) because interim regulations are now in place.
Motion: Ms. Robinson moved to address Ordinance 2871 this evening. Ms. Fenn
seconded. The motionfailed, 3-4, Benskin, Ko1jf, Masci and Sandoval opposed.
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City Council Business Meeting
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November 15, 2004
BADGE CEREMONY
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Chief Mingee introduced Jim Wadkins of the Fire Department and presented him with a
Lieutenant's badge. Mr. Wadkins has accepted the promotion after scoring first on the
civil service internal promotional examination.
COMMENTS FROM THE PUBLIC (Consent and Non-Agenda Items)
Sheila Westerman: supported funding for pool, recreation, parks and community service
organizations and urged the council to balance attention to streets and public safety with
other pressing needs. She recommended consideration of impact fees and spoke in
support of the City Hall Annex and Fire Hall projects. Her comments were submitted to
the Council in writing.
Scott Walker: stated there are too many police officers currently; engineered traffic
calming solutions would eliminate the need for many traffic calls.
CONSENT AGENDA
Mr. Koljf moved for adoption of the following items on the Consent Agenda. Mr. Masci
seconded. The motion carried unanimously, 7-0, by voice vote.
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Approval of the following Bills, Claims and Warrants
Vouchers 91841 through 91854in the amount of$42,838.53
Vouchers 91856 through 91985 in the amount of $459,485.66
Vouchers 1105041 through 1105047 in the amount of $72,758.82
Approval of Resolutions
RESOLUTION 04-058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, DECLARING SANTIAM EMERGENCY EQUIPMENT, INC. AS
THE SOLE SUPPLIER OF SECURITEX FIREFIGHTING PROTECTIVE CLOTHING
RESOLUTION 04-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE
EXTENSIONS TO THE INTERLOCAL AGREEMENT REGARDING EMERGENCY
DISPATCHING, COMMUNICATIONS AND OTHER SERVICES BEYOND
DECEMBER 31, 2004
SPECIAL BUSINESS
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City Council Business Meeting
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November 15, 2004
RESOLUTION 04-057
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A RESOLUTION OF THE CITY OF PORT TOWNSEND, WASHINGTON,
RESCINDING RESOLUTION 04-053 (PASSED SEPTEMBER 15, 2004)
City Attorney Watts stated that Council member Benskin requested the Mayor add an
item to this agenda addressing the rescission of Resolution 04-053, passed September 15,
2004. He noted that the resolution contained two paragraphs, one of which identified
programs the Council intended not to fund in the 2005 budget if the property tax levy did
not pass; and another which stated the Council's intent to establish governance priorities
and core functions that would receive funding priorities in future budgets.
Resolution 04-057 is a blanket rescission of Resolution 04-053; Resolution 04-_
would preserve the latter portion relating to the core functions and process for
determining them.
Public Comment
None
Motion: Mr. Koljfmoved to adopt Resolution 04-057 rescinding Resolution 04-053.
Ms. Sandoval seconded.
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Mr. Benskin stated rescinding the resolution would give the Council an opportunity to
move on with staff and come up with a budget that works. Mr. Kolffagreed and stated
he has never liked the resolution.
Mrs. Medlicott stated that the resolution was passed as a way to communicate clearly to
the public that the city does not have the money to continue on as we have in the past.
Ms. Fenn noted that the Council never spent much time discussing the proposed cuts and
was looking for a way to express what programs could be at risk if we didn't address our
financial issues and to tell the public how grave our financial issues are.
Mr. Benskin agreed, after several comments to remove his characterization ofthe passage
of Resolution 04-053 as a "threat" to the public.
Ms. Robinson noted her discomfort in regard to not wanting the public to think that they
no longer have to be concerned about the programs listed in the resolution. Although it is
non-binding, she stated that for her it is a reminder and a directive of where the
discretionary spending is and what we need to look at is that the needs of the city are not
going to go away.
Mr. Masci asked if the resolution is non-binding. Mr. Watts said the resolution states
intent, but adoption of the 2005 budget is the final action.
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City Council Business Meeting
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November 15, 2004
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Vote: motion carried, 5-2, Masci and Robinson opposed.
RESOLUTION 04-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, CONFIRMING ITS INTENT TO DEVELOP A PROCESS TO
ESTABLISH CORE CITY FUNCTIONS
Consensus was that there would be another opportunity to discuss this.
PUBLIC HEARING
ORDINANCE 2882
AN ORDINANCE OF THE CITY OF PORT TOWNSEND ENACTING A MODEL
BUSINESS AND OCCUPATION TAX ORDINANCE AS NEW CHPATER 5.04A TO
THE PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.04 PROVIDING FOR A
BUSINESS AND OCCUPATION TAX
ORDINANCE 2883
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AN ORDINANCE OF THE CITY OF PORT TOWNSEND ADDING A NEW
CHAPTER 5.04B ADMINISTRATIVE PROVISIONS, RELATING TO THE MODEL
BUSINESS AND OCCUPATION TAX ORDINANCE
Mayor Robinson read the rules of conduct for public hearings. No councilors declared
any financial or property interest in the issue.
Finance Director Michael Legarsky reviewed the packet material relating to the state law
which requires that all cities must adopt a new model B&O tax ordinance by December
of 2004. He noted that Port Townsend's business and occupation tax rate structure is set
at .0014 for businesses involved in wholesale or retail sales and .0020 for all other
business activity. A differential has existed since the tax was first imposed in 1968; but
research has not uncovered any stated reason for the difference. He also noted
businesses are exempt if they earn less than $20,000 per year although they must still file
with the city and get a business license.
Mr. Benskin asked what the process would be for making the tax rate equal; Mr.
Legarsky replied the council could specify this as part of ordinance adoption.
Mr. Benskin asked about licensing fees; Mr. Legarsky stated a change in licensing fees
would require a separate ordinance.
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City Council Business Meeting
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November 15, 2004
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Mr. Kolff asked if the city has a breakdown of taxes and the difference in revenues
between those engaged and not engaged in sales. Mr. Timmons replied that individual
accounts cannot be disclosed, but revenues by category could be provided.
Mr. Legarsky stated that B&O taxes raise about $300,000 per year.
Mrs. Medlicott asked how the city recovers costs from exempting businesses making less
than $20,000 per year. Mr. Legarsky stated some cities have changed their licensing fee
structure. A city business license currently costs $25 per year; many cities are raising
their fees.
Mr. Timmons noted that a business making less than $20,000 per year would pay about
$2 per year. Mr. Legarsky added that he does not consider this exemption a hardship for
the City.
Ms. Sandoval asked if it is typical for cities to have rate differentials; Mr. Legarsky
replied that the City of Port Townsend is not unique in this.
Public comment
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Scott Walker: stated that he owns a small construction business and stated that raising
the business license fee significantly would not treat citizens fairly; a small increase
makes sense. He suggested that a potential savings in staff time might be to go to annual
payments rather than quarterly payments for cities below a certain size.
Mayor Robinson asked if any written comments on the issue had been submitted. Ms.
Kolacy replied that none have been received.
Staff comments:
Mr. Legarsky stated that a rough estimate of the increase in revenue of going to a uniform
system oftaxation would be about $40,000.
Ms. Robinson asked if any of the B&O tax money could be placed in a special fund; Mr.
Watts noted the Council could earmark the money, but the action would not be binding
on future Councils.
Mayor Robinson asked if there were any clarifications for the audience on issues raised.
Sheila Westerman stated that if the city charged retailers the same rate as service
providers it would be a punitive measure.
Scott Walker stated that an annual payment structure could be applied (rather than
quarterly) for businesses making less than a certain amount per year.
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November 15, 2004
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Motion: Mr. Masci moved for first reading or Ordinance 2882 and Ordinance 2883.
Mr. Koljf seconded.
Mr. Masci requested that Mr. Legarsky return and, prior to the final reading, discuss the
split tax rates further.
Mr. Kolff stated he would like to know: how many businesses we are talking about;
what is the impact on important businesses; what is an example of what the change in rate
would be; would it be appropriate in this ordinance to specify that there is the option for a
business at its discretion to pay annually if it is of a particular size.
Mr. Benskin stated he would like to discuss briefly the process of raising the business
license fee. Mr. Watts stated that would be done through an ordinance.
Vote: motion carried unanimously, 7-0, by voice vote.
Mr. Timmons added that the December deadline is for the update of the current ordinance
and Council can always amend at a later date; he also asked if the Council agreed there
was consensus that staff move forward to address the additional informational items that
were brought up. There were no objections.
CITY MANAGER'S REPORT
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Mr. Timmons distributed a packet of information regarding recommendations on
Resolution 04-053 tasking the City Manager to make recommendations to the Council on
a process for establishing governance priorities and core city functions.
He noted there are many models and means by which the process can occur and be
defined. He stated concerns that the Comprehensive Plan and a variety of functional
plans produced by the City set forth expectations, priorities and level of service
standards; many ofthese are outdated, overlap and are in conflict with current reality.
He discussed two recommendations for the Council to consider:
First, a detailed recommendation for 2005 budget allocations was presented.
Second, he recommended that an update of Chapter VII of the Comprehensive Plan be
the starting point for identifying governance priorities and core city functions. The
second phase would be to begin the process to reference and update all the functional
plans to the standards adopted in the updated Chapter VII. To facilitate the process, the
Planning Commission could form an Advisory Task Force comprised of three Planning
Commission members and one representative from each ofthe City's standing advisory
committees. The Planning Commission would also recommend priorities of city
governance for existing and future city service areas as well as provide recommendations
on levels of service for each. Mr. Timmons stated he recommends the strategy employ
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City Council Business Meeting
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November 15, 2004
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the same community involvement process developed in preparation of the original
Comprehensive Plan.
Ms. Sandoval stated that she thought the Transportation Plan would be part of the
document discussion. Mr. Timmons stated that the difference between a functional and
policy plan must be clarified. Mr. Sandoval asked if the transportation consultant was
supposed to do that. He added that the transportation element of the Comp Plan is
different from the transportation plan so the plan must be looked at in two parts: changes
to the comprehensive plan element and then how to implement the changes
(transportation plan). He added that funding for the transportation consultant is part of
the preliminary budget.
Ms. Sandoval stated she does not see impact fees or the rate study. Mr. Timmons noted
we must look at the drivers in logical sequence; we can only pay for added impact so the
model must be in two components: current deficiencies and benchmarks regarding the
impact from other proposed developments.
Ms. Fenn noted that the electeds are charged with interpreting the Comprehensive Plan
and also looking at the functional plans to see if the decisions we are making in any
funding cycle are operating within the stated goals; the variable is that any group of
elected officials can change their minds. She stated it could help us to touch base with a
community vision document and functional plans regarding core city services which
people don't necessarily buy into.
. Mr. Timmons encouraged all Councilors to read Chapter VII of the Comprehensive Plan.
Mr. Kolff asked if there are consistency problems, why would we start looking at the
Comprehensive Plan first and not the discrepancies in the functional plans. Mr. Timmons
said that many of the numbers and LOS assumptions in Chapter VII are outdated.
Mr. Kolff asked if there were a cost estimate for the process. Mr. Timmons stated that
staff is working on that and would like to continue as part of the budget process. If an
independent survey were done it would cost about $20-25,000. He noted there would be
more of a time commitment than a cash outlay.
Mr. Kolff stated he would like to have the Council consider using Jim Rough's Wisdom
Council concept or the Citizen Jury concept of Ned Crosby. He believes that would be
less than $25,000. He added that he is not convinced there is anything wrong with
Chapter VII.
Mr. Benskin stated that he believes the Comp Plan is up for review next year anyway and
new information is needed. He stated Port Townsend has the regulations, codes and
plans of a city of 100,000, that administering and coordinating all this is a major program
and he would applaud simplifying things.
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City Council Business Meeting
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November 15, 2004
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Ms. Robinson stated we have a schedule for making amendments to the Comp Plan but
asked if there is a formal schedule for review of functional plans. Mr. Timmons stated
there is no adopted policy for reviewing and updating the plans.
Ms. Sandoval stated it may be more important to educate the public than to start a whole
new process.
Mr. Masci stated that he does not have time to review the Comp Plan and that consultants
can do that. He also noted his suggestions for the budget: Arts Commission limited to
$3,500; EDC cut to $5,000; cut Main Street; unfund the pool. He added that use ofthe
banked capacity must go to a public vote and must be dedicated to a particular project.
Mr. Masci also brought up the Fire Station exhaust system and the grant writer contract
position in the Police Department as expenditures he would support.
Mrs. Medlicott noted that at some point legal requirements for expenditures differ from
what the Council may wish to do; she added that the city continues to live beyond its
means.
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Mr. Timmons stated that it is true there are many mandated services; the list of services
does not include the level of service, which is a local decision. By oath, Councilors have
sworn to uphold the policies in existence until they are repealed, modified or amended.
He stated it is necessary to set up a framework to have that discussion. He added that
other options are available for Council to consider including district review, consolidation
and annexation. Looking at it all holistically is the challenge.
Mr. Kolff asked what the goal ofthe discussion is. Ms. Robinson stated that the Council
should start early on public process, development of community forums, community
education, and opportunities for community input.
Motion: Mr. Koljfmoved that a discussion of Chapter VII of the Comp Plan and the
City Manager's proposal regarding process be scheduled as an agenda item at a Council
meeting before the end of the year. Mr. Masci seconded. The motion carried
unanimously, 7-0, by voice vote.
Motion: Mr. Koljf moved to also put on a Council agenda a look at alternative ways of
working with the community to get priorities and core values identified, whether through
the City Manager's suggested process, the wisdom council, citizen jury or other means of
getting community input. Ms. Fenn seconded.
Mr. Masci stated he could not support use of the wisdom council as it undermines the
process of representative government; he would entertain a presentation on the citizen
Jury.
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City Council Business Meeting
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November 15, 2004
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Mrs. Medlicott stated this would be an intellectual exercise; the Council already has a
number of meetings scheduled; this is the start ofthe holiday season and she asked if Mr.
Kolffwould be amendable to having these discussions after the first of the year.
Mr. Kolff stated that he would agree to discuss the wisdom council, etc., later but that the
Chapter VII discussion should come soon.
Ms. Fenn stated she supports in January taking an open-minded look about how we get
our information about core services. She does want to keep her eye on finalizing the
2005 budget at this time.
Amendment: Council accepted a friendly amendment to delay discussion of alternative
public process and ways of interacting with the public until January.
Vote on amended motion: carried 4-3, by voice vote, Masci, Benskin and Medlicott
opposed.
Mayor Robinson stated that a request has come forward from the Community
DevelopmentlLand Use Committee to review the pool budget and the parks maintenance
budget. She noted that the review was originally assigned to the General Government
Committee which has in fact reviewed the requests.
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Motion: Mr. Masci moved that the Parks and Recreation and the Pool budgets be
referred to the CD/LV Committee. Ms. Medlicott seconded. The motion carried
unanimously, 7-0.
Suggestions for Future Agenda, Regular Meeting and/or Study Session
Mr. Koljf moved to place a workshop on Historic Preservation Guidelines on the
calendar before the end of the year. Ms. Sandoval seconded. Council accepted a
friendly amendment to specify the November 29 meeting.
Ms. Fenn stated she believes this issue has been thoroughly discussed; she is out of
patience and believes this is a delaying tactic.
Vote: motion carried, 5-2, by voice vote, Fenn and Masci opposed.
Motion: Mr. Masci moved to designate a special business meeting in December for final
reading of the B&O tax ordinance and consideration of changing business license fees.
Mr. Koljf seconded. The motion carried unanimously, 7-0, by voice vote.
Motion: Mr. Koljf moved to consider rescinding the ordinance that specifies use of
banked capacity must be approved by the voters on November 22. Ms. Fenn seconded.
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City Council Business Meeting
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November 15, 2004
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Mr. Watts noted that staff researched two years ago whether the Council could require
voters to dedicate the banked capacity for a particular fund and the answer was they
could not. The voters do not have control over that money; it is a self-imposed limitation
the Council has put on itself. The state gives discretion to Councils to spend tax levy
money; the Council cannot delegate to the voters that authority and thus the vote would
be advisory.
Mr. Masci and Mr. Benskin spoke in opposition to the suggestion.
Mr. Fenn stated that advisory votes cost money; it is more functional to put binding votes
before the public rather than votes which can only be advisory.
Ms. Sandoval noted that for a Council to put this constraint on future Councils was less
than fair; she stated that Councilors are elected to make these decisions and she would
support revisiting the ordinance.
Vote: motion carried 4-3, by voice vote, Masci, Benskin and Medlicott opposed.
Mr. Koljfmoved to add discussion of parking fees at Fort Worden to the November 22
agenda. Ms. Fenn seconded.
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Mr. Kolffnoted that a letter from Jean Dunbar regarding the current status of funding for
Fort Worden parking fees was not forwarded to Councilor LTAC in a timely manner due
to a misunderstanding in communications. Ms. Medlicott stated she believes L T AC
funding as been frozen for the rest of the year and may be unable to fund anyway.
Mr. Kolff noted that the original resolution stated the money, if needed, would come
from L T AC reserves rather than current funding. He stated the amount of money
available to L T AC will be increased by the windfall of back taxes which have not been
forward by the state from collections at Fort Worden.
Mr. Masci stated he would hesitate to characterize money which was owed to the city and
not paid as a windfall; he stated these are uncollected taxes and belong to the bed and
breakfast industry, not as a slush fund for an isolated state park or an entitlement to a
series of commercial entities associated with the park. He stated that the County may
put in money as well; he has no objection to putting this on an agenda to discuss its
merits.
Vote: motion carried, 4-3 with Masci, Benskin and Medlicott opposed.
Mayor Robinson asked Council members to look at the Cedar Room in the basement of
the Waterman & Katz Building to see if any are opposed to scheduling Council meetings
there starting at the beginning of the year. She noted staff would proceed with planning
for that space unless there are objections voiced by the end of the week. The Council's
office and mailroom would also be moved to Waterman & Katz.
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City Council Business Meeting
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November 15, 2004
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EXECUTIVE SESSION
Mayor Robinson announced the Council would go into executive session to discuss a
matter of pending litigation at 10:35 p.m. She stated the session would take
approximately five minutes, with no action anticipated.
RECONVENE
The meeting was reconvened at 10:40 p.m.
ADJOURN
There being no further business, the meeting was adjourned at 10:41 p.m.
Attest:
Vtit,d<Á cM~
Pamela Kolacy, CMC
City Clerk
City Council Business Meeting
Page 11
November 15, 2004