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HomeMy WebLinkAbout102907CITY OF PORT TOWNSEND CITY COUNCIL MINUTES OF THE SPECIAL BUSINESS MEETING OF OCTOBER 29, 2007 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The City Council of the City of Port Townsend met in special session the twenty- ninth day of October, 2007, at 6:30 p.m. in the Port Townsend City Council Chambers of City Hall, Mayor Mark Welch presiding. ROLL CALL Council members present at roll call were Frank Benskin, Laurie Medlicott, George Randels, Catharine Robinson, Michelle Sandoval, and Mark Welch. Geoff Masci was excused. Staff members present were City Manager David Timmons, City Attorney John Watts, Finance Director Michael Legarsky, Public Works Director Ken Clow, and City Clerk Pam Kolacy. PUBLIC HEARINGS Mayor Welch reviewed the rules of procedure for legislative public hearings. He noted the rules would apply to both public hearings. PUBLIC HEARING -ORDINANCE 2957 AN ORDINANCE CORRECTING AND AMENDING THE 2007 BUDGET BY APPROPRIATING THE SUM OF $72,000 TO THE GENERAL FUND; $35,280 TO THE FIRE AND EMERGENCY MEDICAL SERVICES FUND; $175,000 TO THE STORMWATER FUND; $335,000 TO THE WATER/SEWER FUND; $395,000 TO THE SYSTEM DEVELOPMENT CHARGES FUND; $15,000 TO THE MEMORIAL FUND; $12,000 TO THE LIBRARY FUND AND MAKING FINDINGS Finance Director Michael Legarsky reviewed the packet materials. There was no public comment. After discussion, consensus of the Council was to direct staff to specify, prior to adoption, the amount received by the Stormwater Utility Fund as a result of the additional utility tax ($57,000). This will appear in the narrative in the fourth "Whereas" clause on page 1 of the ordinance. Motion: Ms. Robinson moved for first reading of Ordinance 2957. Mr. Welch seconded. The motion carried unanimously, 6-t), by voice vote. City Council Special Business Meeting Page 7 October 29, 2007 PUBLIC HEARING -ORDINANCE NO. 2958 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2008 City Manager David Timmons reviewed the 2008 Preliminary Budget, which was distributed to Council members (a draft Finance Director's budget was previously distributed to the Council). Mr. Timmons noted that the key issue in 2008 is sustainability of the General Fund. There was no public comment. Ms. Medlicott stated she couldn't vote for first reading, as she has not had enough time to review the budget document. Motion: Mr. Welch moved for first reading of Ordinance 2958. Mr. Randets seconded. Motion carried, 4-2, by voice vote, Benskin and Medlicott opposed. RECESS Mayor Welch declared a recess at 7:36 p.m. for the purpose of a break. 1:7xK~7:-r/~.I~ The meeting was reconvened at 7:50 p.m. ORDINANCE 2953 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING THE PORT TOWNSEND MUNICIPAL CODE CHAPTER 13.05 UTILITY RATES AND CHARGES AND ESTABLISHING AN EFFECTIVE DATE City Manager David Timmons reviewed the packet materials, noting his recommendation to remove the fire sprinkler tap fee and to eliminate the Commercial B (over 800,000 gallons per month) customer classification. Regarding the tap fees, he stated that we do not know the actual cost of service and could delete the fee and deal with it during the utility rate update in three years. Regarding the customer classification, he stated that Fort Worden is the only customer affected by this rate; modifying the metering system at the Fort, which is planned, would effectively remove them from the classification. That would result in no need for the classification. There was no public comment. City Council Special Business Meeting Page 2 October 29, 2007 Ms. Robinson stated she has concerns about dropping the tap fees, since the consulting firm that did the utility rate study said our current rate is probably 50% lower than it should be. Ms. Sandoval stated that the Council had recommended a sunset clause for the tap fees at the last meeting so that they would continue in place until further study had been done. Mr. Randels stated that the consultant seems to associate revenues with costs; when it first came to the Council's attention it was stated that the revenue from the taps was $8,800 per year; however, he noted that the building owners who install sprinklers save money for the City by controlling fires which would take large amounts of water to suppress if they were allowed to burn until the Fire Department could arrive. Mrs. Medlicott expressed concern about the number of customers who had taps installed but are not paying the tap fee. Mr. Benskin stated his preference would be to remove the fee, but he could support the sunset clause. Motion: Mr Randels moved for adoption of Ordinance 2953 with the removal of the tap fees and removal of the Commercial B (over limit) rate as recommended by the City Manager. Mr. Welch seconded. Ms. Sandoval expressed concern that if the tap fees were eliminated, the cost would be spread among the rest of the utility customers. She stated she would like to have more information before just eliminating the fee. Public Works Director Ken Clow asked that the Council add language to clarify that the fees are being dropped as an incentive for businesses to have sprinkler systems; this would provide the reasoning for not including a charge recommended by FCS in the rates. Motion: Mr Randels moved to amend the ordinance to add a sentence in the recitals to the effect that dropping the sprinkler tap fee acts as an incentive to businesses to have sprinklers installed. Mr. Welch seconded. Motion failed on a 3- 3 tie, with Medlicott, Robinson and Sandoval opposed. Ms. Robinson stated she would rather not suspend the fees for three years until another study is done. Ms. Sandoval stated it seems irresponsible to go ahead without knowing how this will affect other ratepayers. City Council Special Business Meeting Page 3 October 29, 2007 Mr. Randels stated he could compromise by supporting the sunset clause if the City moves quickly to make sure all users are brought into the system and begin paying the monthly fee. Motion: Ms. Robinson moved to amend the main motion to include Exhibit 8-2 as written with no deletions or changes. Mr. Randels seconded. Mrs. Medlicott said that although she has long been a supporter of Fort Worden, she does not support elimination of the Commercial B (over) rate because the facility is the largest user of water at the most critical time of the year. Ms. Sandoval stated that the Fort will change the billing by re-metering in which case the single user overage will be eliminated; she confirmed that she does understand the philosophy behind the overage. Vote on amendment carried, 4-2, with Benskin and Medlicott opposed. Motion: Mr. Randels moved to add a sentence to the ordinance providing that private fire protection tap fees expire on December 31, 2008, unless extended by Council. Motion carried, 5-7 by voice vote, Benskin opposed. Vote on main motion: motion to adopt Ordinance 2953 as amended carried, 4-2, by roll call vote, Benskin and Medlicott opposed. ORDINANCE 2959 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING THE MODEL BUSINESS AND OCCUPATION TAX ORDINANCE, CHAPTER 5.04A OF THE PORT TOWNSEND MUNCIPAL CODE ORDINANCE 2960 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING THE ADMINISTRATIVE PROVISIONS OF THE MODEL BUSINESS AND OCUPATION TAX ORDINANCE, CHAPTER 5.048 OF THE PORT TOWNSEND MUNICIPAL CODE Finance Director Michael Legarsky reviewed the packet materials. He noted that adoption of the new model B&O ordinance is a state mandate. He also noted the apportionment change was estimated by the Department of Revenue to have a negative impact of about $15,000 on the City's revenues. There was no public comment. Motion: Mr. Welch moved for first reading of Ordinance 2959 and Ordinance 2960. Mrs. Medlicott seconded. City Council Special Business Meeting Page 4 October 29, 2007 Motion: Mr. Randels moved to waive Council rules for first and second reading so the ordinances could be adopted at this meeting. Mrs. Medlicott seconded. The motion to waive rules carried unanimously, 6-0, by voice vote. Vote on motion to adopt Ordinance 2959 and Ordinance 2960 carried unanimously, 6-0, by roll call vote ADJOURN There being no further business, the meeting was adjourned at 8:39 p.m. Attest: r V/ ~Y ~ r ' 1" ~ ry Pam Kolacy, MMC City Clerk City Councii Special Business Meeting Page 5 October 29, 2007