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HomeMy WebLinkAbout100112 CITY OF PORT TOWNSEND MINUTES OF THE REGULAR SESSION OF OCTOBER 1, 2012 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in regular session the 1 st day of October 2012 at 6:30 p.m. in the Port Townsend City Council Chambers of City Hall, 540 Water Street, Mayor David King presiding. ROLL CALL Councilmembers present at roll call were Robert Gray, David King, Michelle Sandoval, Catharine Robinson, Mark Welch, and Deborah Stinson with Kris Nelson excused. Staff members present were City Manager David Timmons, City Attorney John Watts, Public Works Director Ken Clow, Finance Director Michael Legarsky, Public Services Director Rick Sepler, and Deputy City Clerk Joanna Sanders. CHANGES TO THE AGENDA There were none. COMMENTS FROM THE PUBLIC Public comment City staff response Todd Wexman commented on lost sales tax revenues to the City. Chris Hanson commented on sales tax revenues and also spoke in support of the pool. Sue Thomas spoke in support of a library expansion vote early next year. Taylor Spinney asked for a City vote on the library expansion Brett Nunn spoke in support of the library expansion. Sheila Kalov spoke in support of putting the library expansion on the February ballot. City Manager David Timmons said that he would report later in the meeting on the budget status and the library would be part of that discussion. The City should know the status of pending grant opportunities in December, then the amount to City Council Workshop Meeting September 26, 2012 Page 1 of 7 ask from the voters would be known. With the spring 2014 construction schedule, there would be several opportunities in 2013 to put a vote on the ballot. He recognized the need to allow time for community dialogue and seeking capital campaign pledges. He thanked the community for their support and interest in keeping the pool operational and talked about the repair schedule given by pool contractors. City Attorney John Watts responded to the comment that the City would break its contract if it withdrew funding under Proposition 1. The contract does not provide for fixed four-year funding under the terms of the interlocal agreement. It provides for benchmarks and a timeframe for the BOCC and Council to reach agreement on next steps for funding of park facilities. If no agreement is reached on a plan, then the City's obligation to continue funding ends. SPECIAL PRESENTATION Proclamation Mental Illness Awareness Week Darlene Grunke Sanders, representative of the National Alliance on Mental Illness (NAMI), accepted the proclamation on behalf of the organization. She spoke about the work of the organization, programs, and upcoming events. Jean Nolette member of the local NAMI affiliate spoke about the NAMI Walks event on October 27 which promotes mental health awareness. Brief Update on The ReCyclery (this item was postponed to a future meeting) CONSENT AGENDA Bills, Claims and Warrants Electronic Fund Transfer in the amount of$14,578.54 Electronic Fund Transfer in the amount of$12,477.82 Vouchers 118748 through 118766 in the amount of$5,689.29 Vouchers 118767 through 118777 in the amount of$1,043.31 Vouchers 118778 through 118786 in the amount of $92,271.19 Vouchers 118787 through 118888 in the amount of$413,760.98 Voucher 118889 in the amount of $6,748.63 Voucher 118890 in the amount of$934.35 Vouchers 118891 through 118966 in the amount of $322.881.26 Vouchers 118967 through 118969 in the amount of$1,572.60 Voucher 118970 in the amount of$200.00 Approval of Minutes: September 4, September 10, and September 17, 2012 City Council Workshop Meeting September 26, 2012 Page 2 of 7 Library Advisory Board Appointment - Jennifer Cohn (Position 3, with term ending May 1, 2015) Motion: Mark Welch moved to approve the consent agenda. Michelle Sandoval seconded. Vote: motion carried unanimously, 6-0 by voice vote. UNFINISHED BUSINESS: NONE NEW BUSINESS Authorization for the City Manager to award the bid and execute a contract for narrowband compliant two-way radios. City Manager David Timmons explained the need for Public Works and Police two-way radio licenses to come into compliance with the Federal Communications Commission requirement to cease using 25 kHz technology as of January 1, 2013. About 46 radios need to be replaced at an estimated cost of$35,000 to $40,000. Given the change in financial circumstances, he proposed Council authorize him to award the bid, but delay acting on it until finding out the status of our finances and budget obligations. Mr. Timmons and Public Works Director Ken Clow responded to Council questions about the radios. There was interest in exploring any potential for cost savings. Mr. Timmons agreed to provide a recommendation on a contract once he reviews the affected budgets. He noted this amount was included in the 2012 budget. There was no public comment. Motion: Michelle Sandoval moved to approve authorizing the City Manager to award the bid and execute a contract with the successful bidder of the two-way narrowband compliant radios and report back as to the budget implications. Catharine Robinson seconded. Vote: motion carried unanimously, 6-0 by voice vote. Resolution 12-044, authorizing the City Manager to Accept the United States Department of Justice - Office of Violence Against Women Grant Titled "Grants to Encourage Arrest Policies and the Enforcement of Protection Orders" Grants Administrator Michael Evans introduced Beulah Kingsolver of the Dove House and explained the grant to continue a Domestic Abuse Response Team (DART). Mr. Evans and Ms. Kingsolver provided background on the success of the project. This grant would renew the project through September 2014. In response to a question about City expense associated with the grant, Mr. City Council Workshop Meeting September 26, 2012 Page 3 of 7 Timmons noted there is Finance Department staff time associated with processing pass through monies as well as contract compliance and reporting. There was no public comment. Motion: Michelle Sandoval moved to approve Resolution 12-044 as amended (correcting the end date of the program period to read 9130114), authorizing the City Manager to Accept the United States Department of Justice - Office of Violence Against Women Grant Titled "Grants to Encourage Arrest Policies and the Enforcement of Protection Orders."Deborah Stinson seconded. Vote: motion carried unanimously, 6-0 by voice vote. 2013 Preliminary Budget Introduction and Discussion Mr. Timmons presented an overview of the Finance Director's budget, noting copies would be presented to Council this week. He provided background on the recent discovery of the sales tax revenue reporting error to the City. In future years, the City would be receiving an estimated $1.5 million in sales tax revenue versus $1.7 million. Significant changes are required immediately to fix the revenue shortfall for 2012. By the end of this week, City Departments would complete a budget reconciliation in order to make immediate changes. Next week, he hopes to present long-term revenue options. Finance Director Michael Legarsky reported on projected ending fund balances for 2013. He projected a General Fund balance of$480,000, but cautioned that many things can have an impact such as overhead for capital projects. The loss of$200,000/yr. in revenue is significant and he said he was particularly concerned about an ending fund balance of$300,000 in the Water Sewer Fund rather than a desired $1,000,000. He also expressed concern about the pension fund. Many things can change before the budget is brought before Council. Mr. Timmons said he plans to get Council the City Manager's budget by November 1. He talked about the Long-Term 2 Enhanced Surface Water Treatment utility project that luckily would provide overhead allocations to the General Fund in 2012. If there are no Capital Improvement projects beyond 2013, there is concern about General Fund sustainability beyond 2013. It is critical to evaluate these fund balances carefully. Mr. Timmons explained payroll adjustments needed at the pool and the limit placed on police overtime to only emergencies. He is investigating a reallocation of Lodging Tax funds to cover police overtime associated with festivals and events. In order to keep the General Fund whole on an emergency cash basis, he talked about using $75,000 from the contingency fund now and then rebuilding it in 2013. He has suspended the police car expenditure from the Equipment Rental and Revolving Loan Fund for 2012. Proposed changes would need to be revisited in 2013 and as discussed City Council Workshop Meeting September 26, 2012 Page 4 of 7 this evening, the radio equipment replacement would be evaluated. He then discussed the possible resignation of two employees in the General Fund. Even with resignations, the payout of leave balances would not result in 2012 savings. Layoffs are also being considered, but because of the contract notice requirements and payout of accrued leave balances, the savings for 2012 would be minimal. A reconciliation of 2012 overhead transfers is under review as is the remaining balance to be paid under Proposition 1. In 2013, the City would need to look at the interrelationship between Capital Projects and Utility Funds. In 2013, the impact to the General Fund is expected to require roughly $950,000 in reductions due to the $250,000 for 2012, plus roughly $700,000 for 2013. He would report later on a meeting with the Teamsters. Decreased service levels should be expected and minimum staffing levels provide little to no coverage for vacations. He also explained that 100% of consultant engineering charges could be passed through to the project as compared to only a portion of City staff expenses. Operating costs are being examined and the City will be watching real estate activity closely. Discussions should focus on long-term sustainability. He would update Council on bargaining unit discussions during Executive Session. There was no public comment. Council deliberation and action Discussion and questions from Council were about the division among jurisdictions of the 9% sales tax, expected real estate excise tax revenue, and the real estate tax reassessment. There was also discussion about the General Fund balance without an overhead allocation for capital projects. Significant discussion ensued about the miscoding error. Discussion then moved to pool payroll and the unionizing of pool employees. Mr. Timmons said that the City would not challenge the employees desire to form a union. There was also a question about utility rate adjustments, which Mr. Timmons indicated would hopefully be ready for Council action by the first of December, so a phased rate increase could begin in January. Mr. Legarsky responded that he estimates the 2012 General Fund ending balance would be roughly $340K rather than $516K. In response to a question about revenue options, Mr. Timmons said his first attempt would be to balance revenues and expenses, but he would also consider increases in the overhead allocation percentage, utility taxes, rates, and/or fees. Also, the City could go to the voters in 2014 with a special levy, general levy, or parks district. Also under consideration is a renegotiation of the agreement on the Proposition 1 funds. Ms. Stinson asked about the next Town Meeting. Mr. Timmons responded that while the Oct. meeting has been cancelled, the December 11 meeting is still tentatively scheduled. Mr. Legarsky noted that he sent a budget manual from another state for the Council's information. City Council Workshop Meeting September 26, 2012 Page 5 of 7 PRESIDING OFFICER REPORT Mr. King reported attending an open house at Goddard College as well as two meetings with the County on the Proposition 1 and parks issues. He believes there would be one more meeting before expanding participation to pursue a metropolitan parks district as recommended by the Exploratory Regional Parks and Recreation Committee. CITY MANAGER REPORT Contract Authorization - Doxo.com for alternative paperless payment solution for City utility customers Finance Director Michael Legarsky explained the alternative payment solution for water and sewer customers available through Doxo.com. He explained that it not only responds to the requests by utility customers for this payment option, but it eliminates a paper process for those customers. In response to questions, Mr. Legarsky said the City would still have the option of paper bills. Mr. Legarsky explained there is a minimal cost, but it is negligible, comparable with the cost of mailing. Motion: Michelle Sandoval moved to approve authorizing the City Manager to enter into a contract with Doxo.com for alternative paperless payment solution for City utility customers. Mark Welch seconded. Vote: motion carried unanimously, 6-0 by voice vote. Mr. Timmons said staff meetings with the County on the ERPRC have been respectful of the plan and recommendations of the ERPRC. Time is of the essence in getting capital dollars from the County for the pool and the City would need to be assertive. He talked about possible assistance through the Public Infrastructure Fund (PIF) for the pool. There was no public comment. SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION COMMENTS FROM COUNCIL Ms. Sandoval said she is supportive of paperless packets and suggested Council make a New Year's resolution to go paperless. She asked Staff to bring forward the committee recommendation on parking and traffic on Kuhn Street at North Beach. Ms. Sandoval expressed kudos to City staff, Main Street, the Chamber, and Port Townsend Film Festival for a wonderful festival weekend. The outdoor film looked City Council Workshop Meeting September 26, 2012 Page 6 of 7 fabulous without power poles. EXECUTIVE SESSION - PERSONNEL ISSUES At 8:24 p.m., Council recessed into executive session to discuss collective bargaining issues with no decision to be taken following the session. At 8:48 p.m. Council came back into open session. ADJOURN There being no further business, the meeting adjourned at 8:50 p.m. Attest: Pamela Kolacy, MMC City Clerk City Council Workshop Meeting September 26, 2012 Page 7 of 7