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HomeMy WebLinkAbout021312 CITY OF PORT TOWNSEND MINUTES OF THE WORKSHOP OF FEBRUARY 13, 2012 CALL TO ORDER The City Council of the City of Port Townsend met in workshop session the thirteenth day of February, 2012, at 6:30 p.m. in the Council Chambers of City Hall at 540 Water Street, Mayor David King presiding. ROLL CALL Councilmembers present at roll call were Robert Gray, David King, Kris Nelson, Catharine Robinson, Michelle Sandoval, Deborah Stinson, and Mark Welch. Staff members present were City Manager David Timmons, City Attorney John Watts, City Clerk Pam Kolacy, Public Works Director Ken Clow, Finance Director Michael Legarsky, and Development Services Director Rick Sepler. FINANCE ISSUES RESOLUTION 11-043 (4,7,8,10,14) 2011 YEAR END REPORT David Timmons reviewed the 2011 year end budget status. Mr. Legarsky stated that the Annual Report will be completed in May and the 2012 audit will take place in June or July. Mr. Timmons stated that projections for 2012 Real Estate Excise Tax revenues have been further reduced as recommended by the Council; the current projections are very conservative. Mr. Timmons also said that the City's bond rating is under review but that review has not yet been completed. 2011 FUNDING DEMANDS BY EAST JEFFERSON FIRE RESCUE (EJFR) (4) City Manager Timmons reviewed the packet materials. Discussion ensued regarding the relationship between the funding needed to pay for the equipment and the interlocal agreement with the County regarding Proposition 1 funds which could be devoted to public safety but are currently committed through 2015 to the County in support of Memorial Field and the Community Center. Next steps will be a meeting of the Council representatives to the Joint East Jefferson Fire and Rescue Board and review by the Finance and Budget Committee. A joint meeting with the Board of County Commissioners will also be scheduled at some point. UTILITY EXCISE TAX ALLOCATION - MAIN STREET (7) Mr. Timmons reviewed the memorandum regarding the Main Street Tax Incentive Program. He noted that staff is seeking comment from the Department of Revenue to answer the following questions: 1) Does the General Fund need to reimburse the utility fund 25% of the utility's contribution to Main Street (because the utility only gets City Council Workshop Meeting February 13, 2012 Page 1 of 4 a 75% credit against next year's utillity bill, and may not have authority to use utility funds to suport Main Street): and 2) Can the City utility make both the utility tax payment and the contribution to Main Street in Year 1. Mr. Timmons stated that since Main Street has proposed extra services to the City in return for the tax incentive payment, they will need compensation this year. An alternative may be to look at cutting back on the services and the contribution for the first year of the program. The issue will be assigned to the Finance and Budget Committee for further review. CAPITAL REPAIRS AND FINANCING PLAN AND LONG-TERM PROPERTY USE AGREEMENT WITH THE SCHOOL DISTRICT (8) Mr. Timmons reviewed the "Opportunity Assessment Workshop for Municipalities" in the packet materials. He stated that the vendor he selected to facilitate the process locally is Honeywell. The first step in the process is to help gain an overall view of departmental issues and identify areas where technology can be leveraged to provide cost effective solutions. He said that Mountan View is an apparent candidate for the program and the process will also enable the City to develop a broader, holistic plan for overall capital facilities investments and priorities. Mr. Timmons said the discussion about the pool must be held in conjunction with review of needs of the entire facility. Discussions have begun with representatives from the School Board and it appears that most feel the building should stay in public ownership. The issue of a long term property use agreement will be discussed after a new superintendant is hired. Mr. Timmons added that some repairs may be identified that would pay for themselves during the current lease with the school district so may be pursued pending discussions with the district about the future of the facility. He also suggested that the General Services Committee would take the committee lead on this issue. POOL CAPITAL REPAIRS AND FINANCING PLAN (10) Mr. Timmons stated that the packet contains a draft report on the conditions and assessment of the Mountain View swimming pool. He stated that with the report in hand, it is desirable to sit down with pool users and come up with a strategy for pool repairs, which may necessitate a temporary pool closure at some point. He added that the staff is preparing a financing plan and has a recommendation on how to put an initial $120,000 into the pool for immediately necessary repairs. This should be done prior to the outcome of lease discussions since the pool may not be functional without this attention and the City could have to close it from a liablity standpoint. Discussion ensued about several of the details of the report. The City should get City Council Workshop Meeting February 13, 2012 Page 2 of 4 credit for substantial improvements to the pool and building from the school district. Potential credits from Puget Sound Energy may be possible but those credits may not be viable if the PUD takes over the electric utility. Mr. Timmons stated, in response to council concerns, that an action plan will be brought forward to the next Council meeting for repairs that can be made right away. Mr. Watts noted that during the meeting with the consultants, they stated that they did not believe the pool was in such dire straits it should be closed at this time as long as the City begins addressing the issues. Liability issues were discussed further and it was noted that some liability is passed along to group users through their insurance companies. There was general agreement that the pool users must be involved soon so they will understand the problems the City faces and can have input on potential closures. FIREWORKS FUNDING OPTIONS (14) Mr. Timmons reviewed the history of last year's plan. A cooperative effort with a local service club had disappointing results in terms of fundraising. He noted that the event itself was very successful. He said that funding of$10,000 is in the lodging tax reserve and that would be the funding source if it is council's desire to fund the event. Mr. Timmons stated that if a service club is involved, a request for proposals should be put out. He noted that without a formal fireworks display there may be unintended consequences due to proliferation of private, illegal fireworks use. Ms. Nelson stated that she believes finding a partner to split the cost should be explored. Mr. Timmons noted that the City can advertise for an event sponsor. The Council could allocate partial funding and see if there is a response to the request for proposals. Mr. Timmons will request staff to publish an RFP for co- sponsorship, to see if a service club or corporate sponsor can be found up to 50% of the cost. CHANGED FINANCIAL CONDITIONS 2012 Mr. Timmons reviewed his memo regarding changed financial conditions for 2012. He stated that Standard and Poor is reviewing the City's credit rating. The City has supplied all necessary information and we are awaiting a decision. He reviewed personnel changes in 2012 including the still outstanding Police bargaining unit agreement, resignations, retirements, and elimination of another half time position. Capital projects reviewed included the PDA and Fort Worden; Library, Mountain View and YMCA (library moving to Mountain View and compensation for Y space there), options to fund capital investment in utility projects (which include a proposed rate increase), engineering and project management cost City Council Workshop Meeting February 13, 2012 Page 3 of 4 allocation, pool repairs (which were discussed earlier in the meeting) Taylor Street and funding for the revised Waterfront Esplanade, and the list of construction ready projects submitted to the legislators which would be eligible for funding under the Jobs Bill. Mr. Timmons noted that the funding to the PDA would go to fund the services of Dave Robison, Kate Burke and other consultants who will update the business model. It was noted that people in the City have been laid off but we are paying for consultants for the PDA. Discussion indicated that there is a balance of priorities the Council must consider. There was further discussion of utility rates, Public Works Trust fund loans and priority of the projects that may be eligible for Jobs Bill funding. SCHEDULE FOLLOW-UP ACTIONS The Council approved scheduling items as follows: first reading of the utility rate ordinance (February 21), amendment to the PDA resolution (Feb. 21) and Main Street financing (Finance Committee Feb. 22). ADJOURN There being no further business, the meeting was adjourned at 9:24 p.m. Attest: e, Pamela Kolacy, MMC - City Clerk City Council Workshop Meeting February 13, 2012 Page 4 of 4