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HomeMy WebLinkAbout061713 CITY OF PORT TOWNSEND MINUTES OF THE REGULAR SESSION OF JUNE 17, 2013 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The Port Townsend City Council met in regular session the seventeenth day of June, 2013, in the City Council Chambers. Mayor David King called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Robert Gray, David King, Catharine Robinson, Michelle Sandoval, Deborah Stinson, and Mark Welch with Kris Nelson excused. Staff members present were City Manager David Timmons, Public Works Director Ken Clow, Public Services Director Rick Sepler, and City Clerk Pam Kolacy. CHANGES TO THE AGENDA Mr. Gray requested that Item F (Wayfinding Phase II contract authorization) be removed from the consent agenda for discussion. It was agreed to place it as Item B under Unfinished Business. SPECIAL PRESENTATION: Proclamation: Amateur Radio Week Mayor King read a proclamation declaring the week of June 17, 2013, as Amateur Radio Week. John Ebner accepted on behalf of the American Radio Relay League. Council member Stinson commended the group for its work. COMMENTS FROM THE PUBLIC Public comment Pat Moore regarding interfund loans, progress on Customs House and utility rate increases. Robere Le Huquet regarding upgrade of the Visitors Information Center. Colby Fox regarding street parking near Fort Worden. City staff response City Council Business Meeting June 17, 2013 Page 1 of 7 City Manager Timmons responded to issues raised during public comment. CONSENT AGENDA Bills, Claims and Warrants Vouchers 120852 through 120860 in the amount of$220,206.64 Voucher 120861 in the amount of$13,988.82 Voucher 120862 in the amount of$953.25 Electronic Fund Transfer (EFT) in amount of$97.51 EFT in amount of $697.18 Vouchers 120751 through 120759 in the amount of$1,798.04 Vouchers 120760 through 120848 in the amount of$345,819.76 Vouchers 120849 through 120850 in the amount of$1,017,832.19 EFT in the amount of$9,825.68 Approval of Minutes: May 20, 2013 Appointments to Committees/Advisory Boards: Parks, Recreation and Tree Advisory Board Jason Cecil (Position 4, Horticulture, Term expires May 1, 2016) Non-Motorized Transportation Advisory Board Lys Burden, reappointment (Position 6, Term expires May 1, 2016) Pat Teal, reappointment (Position 7, Term expires May 1, 2016) Historic Preservation Committee Marsha Moratti, reappointment (Position 6, Term expires May 1, 2016) Rosalind Russell, reappointment (Position 7, Term expires May 1, 2016) Lodging Tax Advisory Committee Will O'Donnell, reappointment (Position 3, Term expires May 1, 2016) Janette Force reappointment (Position 6, Term expires May 1, 2016) Arts Commission Erin Fristad, reappointment (Position 9, Term expires May 1, 2016) Authorization for the City Manager to award the bid and execute the contract with StripeRite Inc. for the 2013 pavement striping program in various locations of Port Townsend Resolution 13-018, Authorizing the City Manager to Execute an Intergovernmental Master Contract Usage Agreement with Washington State Department of Enterprise Services (DES) Motion: Michelle Sandoval moved to approve the consent agenda with the removal of Item F (Wayfinding project Phase II) and a correction to the minutes of May 20. On Page 2, the spelling of Roger Birman's name would be corrected (from "Berman.)" Mark Welch seconded. Vote: motion carried unanimously, 5-0 by voice vote. UNFINISHED BUSINESS City Council Business Meeting June 17, 2013 Page 2 of 7 Authorization for the City Manager to execute a contract with the Washington State Historical Society for a Washington State Heritage Capital Project Fund Grant in the amount of $363,750 for the restoration of the Carnegie Library Building. Public Works Director Ken Clow reviewed the staff report. The grant is for the restoration of the Carnegie Library Building as part of the Library Seismic Retrofit project. The funds can only be used for the Carnegie restoration, and are not eligible for use as part of a Library expansion project. Once the contract is approved the City will be able to apply for a reimbursement for $230,000 for funds already expended (of the total of approximately $885,000 expended to date). Mr. Clow noted that remaining eligible pieces of the Carnegie's restoration include new carpet, removal of the current elevator, restrooms and utility closets; HVAC modifications, historically correct lighting fixtures, and exterior concrete work. There was no public comment. Motion: Catharine Robinson moved to authorize the City Manager executing a Heritage Capital Project Fund grant contract with the Washington State Historical Society for a $363,750 grant for the restoration of the interior and exterior of the Carnegie Library Building. Deborah Stinson seconded. Vote: motion carried unanimously, 6-0 by voice vote. AUTHORIZATION FOR THE CITY MANAGER TO AWARD THE BID AND EXECUTE A CONTRACT WITH THE LOWEST RESPONSIBLE, RESPONSIVE BIDDER TO FABRICATE AND INSTALL SIGNAGE FOR THE PORT TOWNSEND WAYFINDING PROJECT PHASE II Public Services Director Rick Sepler gave the staff report. He noted that approval would authorize the City Manager to award the bid and execute a contract for fabrication and installation of signage for the Port Townsend Wayfinding project Phase II. The project has had three separate approvals by the Council and there remains $153,000 of federal funding for the sign construction. Specific signage text will be presented to Council at a future date. Mr. Gray stated he has had feedback regarding the sign on the Community Center grass. He said that seniors are worried about running into the sign because it blends in with the background. Mr. Sepler gave some background information on the sign, noting it is not finished, and stated he would follow up. Public comment: Colby Fox regarding sign pollution. Motion: Michelle Sandoval moved to authorize the City Manager to award the bid and execute a contract with the lowest responsible, responsive bidder to fabricate and install signage for the Port Townsend Wayfinding project Phase ll. Mark Welch seconded. Vote: motion carried unanimously, 6-0 by voice vote. City Council Business Meeting June 17, 2013 Page 3 of 7 NEW BUSINESS Authorization for the City Manager to enter into contract for automatic meter reading interface (AMI) City Manager David Timmons reviewed the staff report. He noted that the Council reviewed the matter at the June 10, 2013 Council workshop. He said the citizen Climate Action Committee previously identified replacing water meters with "remote read" meters as part of their recommended action plan which was approved by the Council. Staff was then directed to work with the Resource Conservation Officer to investigate how to best implement the plan. In early 2012, Council authorized an agreement with the State Department of Energy for the Energy Savings Performance Contracting Program. Since then, staff has been working with Honeywell to perform the energy savings audit. The AMI is part of that review and is brought forward separately at this time due to concerns that the new "low lead" water rules to be implemented on January of 2014 may require full meter replacement which could double the cost of the project and preclude any cost benefit resulting from AMI installation. The AMI reduces utility operational costs, meter reading costs, vehicle operations and maintenance costs, vehicle fuel costs, transmitter repair and replacement cost, and billing reconciliation costs. Mr. Timmons said that the AMI investment does not impact the current rate recommendation but has a neutral impact. Honeywell offers a guarantee of system performance which warrants that the proposed system will perform as specified and will yield savings as indicated in the materials. There is also a catastrophic failure warranty provided. Estimated payback from operational savings will be realized in 12.5 years and the project provides cost stabilization on utility operations and maintenance. There was discussion of the "low lead" requirements. Financing would be through revenue bonds and would not affect the City's general obligation debt total. The utility does not currently have any debt obligation except trust fund loans with interest rates guaranteed by the state. There was further discussion about which components of the program are included in the current financing package. Staff will review how much the termination fee will be if the project does not go forward. Councilmember Stinson gave a brief explanation of how the item got onto the Climate Action Committee work plan. Public comment Patrick Moore had questions regarding the project. City Council Business Meeting June 17, 2013 Page 4 of 7 Steve Oakford spoke in support of the project, noting that the timing seems right in light of the pending EPA "low lead" decision. Councilors commented that this is a good opportunity to add tools for both the City and homeowners to manage their accounts effectively and do it in a cost neutral way; that this will become standard for most municipalities; that there are fixed costs that must be covered to make the system work. Mr. Gray expressed support for the project but concern about whether the project is really neutral in cost. He stated that more information is needed. Mr. Timmons said that this will allow him to go to the next phase of the project and he will return to Council with a financing package for Council approval. Motion: Deborah Stinson moved to authorize the City Manager to enter into an agreement(s) with the State of Washington and Honeywell for Automatic Meter Interface consistent with the summary in the agenda bill. Mark Welch seconded. Vote: motion carried, 5-1 by voice vote, Robert Gray opposed. Ordinance 3090 Amending PTMC Chapter 13.05 Utility Rates and Charges and Amending Chapter 13.03 System Development Charges and Excluding the Capital Surcharge from the City Utility Tax David Timmons presented the staff report on new utility rates. The Council has reviewed preliminary rate models and most recently reviewed a presentation at the June 10 workshop which included elements such as revenue requirements, rate design, system development charges (SDCs) and the outside-city multiplier. He stated that the City is facing a significant number of capital project expenditures related to the utilities. Consultant Financial Consulting Solutions, Inc. (FCS) findings show that the operating revenue of the water utility is not fully covering overhead and maintenance expenses. Adoption of the proposed rates to be effective August 1, 2013 is recommended with SDC increases phased in. It is also recommended that the Finance and Budget Committee review the SDC payment options prior to implementation. Clarifications regarding prior rate increases were made. Mr. Timmons explained the arrangement with the Mill for water; that the Port and Fort pay for water and that the golf course pays for potable water but not irrigation water. No credits for potential sales of surplus property or timber have been factored in but if that happens the capital surcharge rates can be adjusted. Mr. Gray stated he believes more information should be provided to the public. There was no public comment. Staff will review the headings (Annual Rate Increase and Rate Multipliers) on Exhibits A and B to see if there are errors. There was further discussion about how information is communicated to the public. City Council Business Meeting June 17, 2013 Page 5 of 7 Low income qualifications were reviewed. After further conversation, staff was directed to remove SDC-related portions of the ordinance pending review, and determine whether the headers in Exhibits A and B should be deleted. Motion: Mark Welch moved to approve first reading of Ordinance 3090 Amending the Port Townsend Municipal Code Chapter 13.05 Utility Rates and Charges, Including Capital Surcharge and Outside-City Multiplier, and Amending Chapter 13.03 on System Development Charges (SDC), and Excluding the Capital Surcharge from the City Utility Tax, and establishing an effective date, that staff bring back information requested during the discussion and to task the Finance and Budget Committee with review of the SDC payment options. Deborah Stinson seconded. Vote: motion carried, 5-1 by voice vote, Robert Gray opposed. Motion: Michelle Sandoval moved revisit surplus properties that belong to the utility fund and also the timber cruise information and have staff come up with a program for suggestions for how to mitigate the surcharge, present the information to Council and assign review to the Special Projects Committee for recommendation. Mark Welch seconded. Vote: motion carried unanimously, 6-0 by voice vote. Mayor King declared a recess at 8:36 p.m. for the purpose of a break. The meeting resumed at 8:45 p.m. PRESIDING OFFICER REPORT Appoint Subcommittee of Council to work on Succession Planning Mayor King stated that he has appointed Councilors Robinson, Gray and Nelson to work with the City Manager on succession planning issues. CITY MANAGER REPORT Authorize City Manager to recruit for assistant IT Position Mr. Timmons reviewed the information on the City's need for technology assistance and the proposal to hire another employee for the information technology department. He noted the City's growing dependence on technology and the need for technical support coverage at all times. He reviewed cost savings through efficiency and technology upgrades as well as the potential for charging a per-unit charge to City departments. There was no public comment. City Council Business Meeting June 17, 2013 Page 6 of 7 Motion: Deborah Stinson moved to authorize the City Manager to establish a position for Information Technology Assistant. Mark Welch seconded. Vote: motion carried unanimously, 6-0 by voice vote. Schedule Council Budget Retreat (suggest July 25 at 1 p.m.) Mr. Timmons stated a budget retreat would be scheduled for Thursday, July 25, at 1:00 p.m. either in the Cotton Building or the Pope Marine Building. Ms. Robinson was not sure she would be able to attend at that time. It was requested that Council members contact the City Manager as soon as possible if the date did not work for them. SUGGESTIONS FOR NEXT OR FUTURE AGENDA, REGULAR MEETING AND/OR STUDY SESSION COMMENTS FROM COUNCIL Finance and Budget Committee Report (April financials and annual report) Mr. Timmons noted that Council has received copies of the 2012 Annual Report, and that the annual state audit will begin in July. EXECUTIVE SESSION ADJOURN There being no further business, the meeting was adjourned at 9:53 p.m. Attest: Pamela Kolacy, MMC City Clerk City Council Business Meeting June 17, 2013 Page 7 of 7