DEL CRESCEN CRESCENT CITY
UNTY
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1854
1857 K4 IFORNIA MARBOR DISTRIC
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County of Del Norte
City of Crescent City
Crescent City Harbor District
Joint Meeting MINUTES
Veterans Hall
810 H Street
Crescent City, CA 95531
October 25, 2022 5:30 P.M.
• Call the meeting to order Mayor Greenough, Chair Hemmingsen and President Shepherd called the meeting to order at 5:33 pm.
• Roll Call -
City Council Members present: Council Member Ray Altman, Council Member Blake Inscore, Mayor Pro Tem Isaiah Wright, and Mayor Jason Greenough
Council Member Absent: Council Member Beau Smith
City Staff present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, and Finance Director Linda Leaver Board of Supervisors present: Supervisor Chris Howard, Supervisor Susan Masten, Supervisor Valerie Starkey, Vice-Chair Darrin Short, and Chair Gerry Hemmingsen County Staff present: County Administrative Officer Neal Lopez, County Counsel Joel Campbell-Blair and Clerk of the Board Kylie Goughnour
Harbor Commission present: Commissioner Harry Adams, Commissioner Brian Stone, Commissioner Gerhard Weber, Commissioner Wes White, and President Rick Shepherd Mayor Pro Tem Wright joined the meeting at 5:35 p.m.
• Pledge of Allegiance: led by Chairman Hemmingsen
MINUTES | JOINT CITY/COUNTY/HARBOR
1. All three agencies: general discussion regarding Tri-Agency's debt to USDA and potential apportionment of that debt among the member agencies.
County Counsel Campbell-Blair gave a history of the Tri-Agency and the debt that is still owed. Tri-Agency is short $160k to pay the debt owed to the USDA; Chair Hemmingsen stated splitting it evenly three ways could be an option. Harbor President Shepherd asked if it had already been decided what the split would be; Counsel Campbell-Blair stated it had not - the most recent contribution commitments from several years ago had annual contributions split 60% for the County, 20% for the City, and 8% for the Harbor. Commissioner Stone asked about the split before stating that he had heard that it was split evenly, and then the way County Counsel explained; is there documentation? Counsel stated that there is a document at the County. Commissioner Stone stated it was his understanding that the amount was reduced for the Harbor due to the financial state of the Harbor at the time. Since there are different percentages for the Boards, the discussion should be centered around that point. The Boards agreed to have a discussion on what should be agreed to. Chairman Hemmingsen said his proposal was evenly across the board as he would like to get rid of the debt. Commissioner Adams asked what the amount would be; Chair Hemmingsen answered that it would be $ 160k divided by three.
Commissioner White stated he would like to see this paid and dissolved. He believes the Harbor should pay the least due to the amount of area and budget and have little to benefit for the Harbor. He stated that the Commission has agreed to pay $25k over 5 years. Council Member Inscore stated the debt needs to be paid in full now since more debt will be accrued over time. If this Board doesn't make this decision, it'll be passed on to someone else. The responsibility falls upon the agencies, not by percentage as they weren't given the same percentage of services from the Tri-Agency, it's the full division of benefits. The Harbor has benefitted the most from the Tri-Agency. There is justification of a third/third/third - but it's a non- starter and will get nothing accomplished. If the Harbor comes up with the $25k up front right now, the Clty would cover ½ of the remaining debt as long as the County agreed. Chair Hemmingsen said that the County passed a 2% TOT for the Harbor, not the City or the County, therefore, more should come out of the Harbor due to that. Commissioner Stone stated that the Harbor should come up with a third because of the return that will be generous. The third is $53k; he's willing to vote for a third to move this forward. For the long run the benefit would be in everyone's best interest to get the debt paid. The Treasury could just take it from any member agency, therefore, the debt needs to be resolved. Council Member Altman asked if paying the debt meant that the Agency would be dissolved; Counsel Campbell-Blair stated there would be a little money in the account and then the Boards could decide to dissolve the Agency, but that paying the debt would not automatically dissolve the agency. Mayor Greenough stated this is an opportunity to clean up the mess and would prefer for the money to go elsewhere, however, since the City gained the benefit of the Agency, we should pay this off. We need to Agree to a split and then decide whether to dissolve or keep the Agency; feels the Agency was beneficial in the past. Chair Hemmingsen stated there is a lot of room for development and the split of the debt needs to be decided. Commissioner Weber stated that based on their budget, it would be a much bigger impact to the Harbor than it would for the City and County. However, it's only fair to consider paying a third. Commissioner Harry Adams asked how the proposal for the Harbor to pay 8% came about; Supervisor MINUTES | JOINT CITY/COUNTY/HARBOR
Short said it was based on prior contributions. Chair Hemmingsen stated that the Harbor doesn't get 8% of the benefits, it could be significantly increased due to the Tri-Agency projects that come forward. Chair Hemmingsen asked for the Commission to state what they can pay so the City and County can move forward.
Commissioner White proposed $40k; Commission was in consensus. Council was in consensus for $60k; County $60 consensus.
2. County: Make a commitment to contribute a specified amount to Tri-Agency for the purpose of repaying the USDA debt, and give direction to staff to take steps necessary to effect payment, including, if necessary, placing a budget transfer on a future agenda; or take other action as necessary and appropriate On a motion by Vice Chair Short, seconded by Supervisor Howard and carried unanimously on a 5-0 polled vote, the Del Norte County Board of Supervisors committed to contribute $60,000 to the Tri-Agency to repay the USDA debt.
Supervisor Masten asked about paying the debt and she thought the Agency would be dissolved and hears discussions about it being continued. Wants to reconsider the Agency to ensure the policies guard for protections so this doesn't happen again. Doesn't feel comfortable voting on this; would like evaluation on what will happen and where it is going. Chair Hemmingsen stated that the Agency will do nothing without the payment of the Board, if it is decided to dissolve, that can be done. This decision is only to pay the debt not to dissolve the Agency. Supervisor Starkey stated she has a strong opinion on the future of the Agency and is not in favor of it continuing; supports paying the debt.
Supervisor Howard stated there is no one in this room that made the decision to be the last resort; each Agency will decide to never be the lender of the last resort. Spoke about previous accomplishments of the Agency; supported paying off the debt.
Linda Sutter: stated that having the public pay for something they didn't ask for is unfair.
Spoke on former Tri-Agency Director Renfroe's actions.
Kevin Hartwick: stated that it was a bad choice to take the money from the government, but that is all, a bad choice. Spoke on the 8% was an accident, there was no former agreement it was based on their word. Encouraged coming together for an agreement.
Donna Westfall: gave her history of why she wanted to get into politics due to the way money was being spent. If you don't go with the majority you are going to be ostracized.
Asked for this to be looked at seriously and consider dissolving it.
Kevin Hendrick: 60/60/40 is a good split and encouraged cooperation and looks forward to consideration of what Tri-Agency can do.
3. City: Make a commitment to contribute a specified amount to Tri-Agency for the purpose of repaying the USDA debt, and give direction to staff to take steps necessary to effect payment, including, if necessary, placing a budget transfer on a future agenda; or take other action as necessary and appropriate.
On a motion by Council Member Inscore, seconded by Mayor Pro Tem Wright, and carried on a 4-0 polled vote with Council Member Smith being absent, the City Council of MINUTES | JOINT CITY/COUNTY/HARBOR
the City of Crescent City committed to contribute $60,000 to the Tri-Agency to repay the USDA debt.
There were no comments from the public
4. Harbor: Make a commitment to contribute a specified amount to Tri-Agency for the purpose of repaying the USDA debt, and give direction to staff to take steps necessary to effect payment, including, if necessary, placing a budget transfer on a future agenda; or take other action as necessary and appropriate.
On a motion by Commissioner White, seconded by Commissioner Adams and carried unanimously on a 5-0 polled vote, the Crescent City Harbor Commission committed to contribute $40,000 to the Tri-Agency to repay the USDA debt.
Mayor Greenough, Chairman Hemmingsen, and President Shepherd adjourned the meeting respectively at 6:22 p.m.
ATTEST:
Portman
Robin Altman
City Clerk/Administrative Analyst
MINUTES | JOINT CITY/COUNTY/HARBOR