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HomeMy WebLinkAbout02/15/95 COUNCIL APPROVED HAR,. 8 1995 CITY COUNCIL MEETING MINUTES FEBRUARY 15, 1995 #0054 #0067 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, February 15, 1995, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were A1 Colvin, Morrie Dawkins, Carlos Montgomery, John Law, Richard Neville, David Farr and Lon Overson. Councilman Bob Winters was absent. Also present were City Attorney Ian Sievers and City Clerk Kathleen McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Reverend Scott Shaw of the Bremerton Church of the Nazarene. CONSENT AGENDA A. Minutes of Meeting - February 1, 1995 #AB95-023 M/S/C/U(Neville/Montgomery) presented. to approve the Consent Agenda as CLAIMS/CHECK REGISTER8 Vouchers audited and certified by the auditing officer as required by RCW 42.24,080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Dawkins) on February 15, 1995, the Council does approve for payment those vouchers included and further described as follows: 182179 through 182181, and 182183 through 182312 in the amount of $387,555.41. President Huff-Menees made the following announcements: (1) Council will hold a Study Session immediately following the City Council meeting, in the Council Conference Room. Topic to be discussed is: "Communication Plan" by CaryBozeman, and the public is welcome to attend; (2) Council will reschedule the Joint Study Session with the Planning Commission that was cancelled due to the snow. Please watch for the new date to be announced soon in the newspaper. COUNCIL MEMBER REPORTS Mr. Colvin congratulated Elly Overson for establishing a bed & breakfast business downtown. Mr. Dawkins stated the snow really came down, causing all kinds of TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 2 of 19 problems. He complimented City departments for doing what they were supposed to, including the Police department handling the fender-benders and other more serious calls, and to the Street department, who sanded the streets promptly. Mr. MontuomerV echoed Mr. Dawkins comments, and stated the Street department did an excellent job getting the streets cleaned off. He also thanked Mr. Lawrence Keil for his nice letter and stated someone would be getting in touch with him regarding his comments on Forest Ridge Park. Mr. Law announced the next District #3 (Manette area) monthly meeting will be Tuesday, February 21, 1995, at 7:00, in the Senior Center at 13th & Nipsic, and the topic will be "Are You Prepared for a Catastrophic Emergency?". Guest speakers will be Phyllis Mann, Assistant Director for Kitsap County Department of Emergency Management, and Mick McKinley, City of Bremerton Fire Chief. It is important to find out what you need to know to be prepared in the event of a major disaster, and what services will be available. He also asked Ms. McCluskey to comment on the fact that the value of the City's recyclable waste is going up. Kathy McCluskeV, City Clerk, commented the value has gone up tremendously. And, from January 1994 until December 1994, the rates have changed as follows: City was getting $25/ton for newspapers in January, and by the end of December that amount had gone up to $120/ton; mixed paper was at $25/ton and we are now getting $220; aluminum cans from $730 to $1,.420; HDPE plastics from $80 to $440/ton; PETE plastics from $20 to $100/ton; and glass has dropped in value slightly. What this means to the citizens of Bremerton is that in our 3rd year of the curbside recycling program, the price is the same and won't change, and the amounts that citizens are recycling is going up so the City is getting more people involved. Also, the cent-and-a-half that the City was able to reduce on the tax is in part attributable to the increase in value of the recyclables. This is all very positive news to the citizens of Bremerton, and the City hopes to see this trend continue. Mr. Farr thanked all the citizens who showed up at the joint District 6, 7, & 8 meeting on February 2. He felt it was a good meeting and noticed there was a little controversy involving Forest Ridge Park, which he feels re-emphasizes the need for park issues to be "community-wide" versus "neighborhood-wide". He stressed to those in the community to get their desires known to those making the decisions regarding the parks, since they belong to the community. Lastly, he congratulated the owners of the new restaurant "Annie's Country Buffet", on their excellent establishment, and hopes they are a long-term Bremerton fixture. Mr. Neville announced on Thursday, February 16, 1995, there will be TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 3 of 19 a comedy night benefit at the Cloverleaf Restaurant to benefit the Pendergast Regional Complex. Rod Long and Tad Hogan are scheduled to appear at that event. Contact the Parks Department for ticket information. Mr. Overson thanked everyone for their positive comments expressed after the article appeared in the paper on his home. The Sun is planning future articles on other homes of interest in the City, with hopes of developing a "tour of homes" for the City of Bremerton. If any citizen has information on a home they feel would be of interest to the public, please get the information to The Sun. He also invited the public to come and take a look at his home in person, as the pictures in the paper were great, but didn't quite do it justice. He thanked the Police Department for all their great work. He complimented the Evergreen Parks Development Program, and the way information has been gathered from citizens to help in the process of finding out what the citizens want, and feels this will bring good results. He thanked Randy Witt, City Engineer and Dan Eisess, Senior Engineer, for their taking time out of their personal schedules to go out with some citizens to look at corners or intersections that the citizens felt needed Stop signs. After all the facts were gathered, nothing will probably need to be changed, but it was a very educational experience. MAYOR,S REPORT Mayor Lynn Horton extended her appreciation to the Street crew for the wonderful job done during the snow. Several people with the City have had mishaps due to snow related accidents, and she wanted them to know that our thoughts were with them. Also, she read a notice in the newspaper that warned customers of Falcon Cable that they may experience loss of reception on some channels due to solar interference. There is nothing the Cable company can do about this phenomenon, and it can occur anytime between February 27 and March 7, with each occurrence lasting for about 9 minutes. There was a good meeting on White's Blueberry Farm Park last week, where all kinds of ideas and suggestions were offered by citizens, who came to the meeting to offer their views on the planning process. There will be follow up meetings the end of the month, and she encouraged anyone, who would like to offer their input, to please come. PUBLIC RECOGNITION Chief Paul Du Fresne shared a letter from the Washington Special Olympics and the Torch Run Executive Committee thanking the Bremerton Police Department for their outstanding efforts in the 1994 campaign, which helped make that campaign a record setting year with over $103,000 raised to further the mission of Special Olympics. A plaque was presented, along with a 1995 T-Shirt, listing the Bremerton Police Department in the "Circle of Honor". In addition, three members of the Department were inducted into the TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 4 of 19 Circle of Honor: Officer Randy Olsen, Sgt. Larry Hill, and Sgt. Terry Welling. This is the second consecutive year the Bremerton Police Department has been recognized for their efforts in this organization. He stated he was very proud of the efforts of all the officers involved, and wanted to share that with the Council. President Huff-Meness offered the Council's congratulations to the Police Department for their participation and acknowledgement. David Willjams, Citizens Involvement Committee for the Wastewater Treatment Plant Odor Control Project, stated that the public information meeting scheduled for Tuesday, February 21, 1995, has been postponed until Monday, March 13, 1995 at 5:30 P.M. at the Public Works Facility located at 100 Oyster Bay Avenue. The meeting was postponed because under the Environmental Protection Act, there is a SEPA check-list of required information that must be presented at a public information meeting for a project of this type, and that information will not be ready until after the first of March. GordV Byrd stated he appreciated finding out from. the Mayor's office that the Network Information Meeting scheduled Tuesday night was canceled due to the snow before he ventured out in the weather to find there was no meeting. He also wanted to remind everyone that there are people in need, and he offers his services to anyone who needs his help. 7A - CABLE RATE APPROVAL FOR TCI CABLEVISION, #AB95-024 The City became certified by the FCC to regulate basic service tier cable rates and associated equipment and installation charges as of February 1, 1994. TCI submitted Form 1210 - Updating Maximum Permitted Rates for Regulated Cable Services to justify a rate increase for the basic service tier. FCC Rules allow operators to increase regulated rates quarterly for certain cost increases associated with programming, copyright, and retransmission fees, or franchise fees or taxes. TCI provided sufficient documentation that verified financial and channel data. Upon review by staff, it was determined that TCI's Form 1210 was prepared accurately using assumptions and methodologies consistent with FCC Rules. Paula Johnston, License Inspector, stated TCI has applied for a rate increase for the basic tier service. Their rates for basic tier were certified and approved last December, and in effect since July 14, 1994. According to FCC rules and guidelines, cable operators are allowed to come before franchise authorities quarterly if they experience net programming cost increases, or tax- or franchise fee increases. TCI is coming before Council to request this rate increase based upon net programming cost increases that they experienced between April 1, 1994 through September 30, 1994. One of those external costs was due to a TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 5 of 19 change of channel formatting June 1, 1994 on the basic tier when TCI dropped the Weather Channel and replaced it with the FOX affiliated FX station. There was also a slight increase in the copyright fee, and they are allowed, and did take, a 7.5% mark-up that FCC allows cable operators to plug into increases. She reminded Council that as a franchise authority, they have taken on the responsibility to approve basic tier rates. This regulation is a little bit different in that it is a review of FCC rules. Staff has gone over the rate increase request and believes FCC rules and guidelines have been followed. Even though Council may not agree with the justification behind the rate increase, the cable company calls the shots here, and the City just ascertain whether the rules have been followed. Public comment - none. Mr. Neville, stated TCI has taken off the Weather Channel and replaced it with FX, even though viewers are requesting the Weather Channel be put back on. He understands that FX was put on due to a contract with the FOX Broadcasting Network, and also in compliance with FCC regulations it states that TCI is allowed a rate increase of 7.5% every quarter. Trina Jaman, TCI Office Manager, stated it's a 7.5% mark-up on any programming cost increases, not a 7.5% overall increase every quarter. FX is a higher priced channel than the Weather Channel, and that is one reason for the increase, the other portion is for a small copyright fee. Mr. Nevilleasked if there were any plans in the future for switching other channels around, and if so, would TCI have the courtesy of asking the subscribers what they would like rather than just putting on the channels they see fit? Ms. Jaman stated TCI already hew one channel had to be dropped to make room for FX, and a survey was conducted by an independent telemarketing firm to ascertain which channel that would be. As to what channels will be added in the future, there are several channels that viewers do want, but TCI is out of space. Until the system is rebuilt to increase the channel capacity, to add one another channel has to be dropped. Even though this survey was done, the decision to drop the Weather Channel still has upset some people. Mr. Neville pointed out that "FX" is on channel 20, and he has experienced reception problems on channel 19 and 20, since this new station has been added. Ms. Jaman stated this area is bombarded by pager service interference, which is worse during the day, but there is not a whole lot the company can do to fix that at this point. When they have more channel capacity, she anticipates they will not have any programming on channels 19 and 20. Mr. Montgomery asked if TCI had a contractual agreement with Fox to put the FX Channel on? Ms. Jaman stated yes. Mr. Montgomery TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 6 of 19 noted reference was made to a survey taken... he questioned the number of people surveyed out of the total population of subscribers? Ms. Jaman explained a professional telemarketing firm was used and they were given the numbers of subscribers and asked to set the number of people they felt would be statistically significant. She believed the number of people called was approximately 300. Mr. Mont~omez7 asked what percentage of total subscribers did that number represent? Ms. Jaman stated they have approximately 19,000 subscribers. Mr. Mont~omer][ asked if the telemarketing firm also indicate that by going to the new FX it would cost the subscriber more money? Ms. Jaman stated that was not part of their survey. Mr. MontgomezTasked how the contractual agreement with FOX come about? Ms. Jarman explained it came about indirectly due to the FCC regulation with the Cable Act of 1992. It gave local programmers an option - they either elect to force them to carry them, and that is the case with some of the channels that were less popular, or the broadcasters, if they felt they had programming that was strong enough, could negotiate involving some kind of compensation. The agreement reached between TCI, as a corporation, and FOX, as a corporation, was that instead of direct monetary compensation for the carriage of Channel 13, TCI would carry the FX Channel. It is possible that some of the rate increase would have gone through any way due to programming costs that they would be paying FOX to carry Channel 13 instead of paying for FX. Mr. Montgomery stated he has not personally watched the FX channel, however, he has received a number of calls indicating few people within his neighborhood are interested in it. Ms. Jarman stated FX has its own following and targets a specific demographic group - people between the ages of 18-35. Mr. Montgomery asked how many people want to watch the Weather Channel? Ms. Jarman stated that was impossible to quantify. The Weather Channel has a wide appeal, but it comes down to the fact that people may watch it for 2-3 minutes per day and other channels may be watched for longer periods. She realizes the Weather Channel is missed and she hoped it could be returned once they have more channel capacity. Mr. Law stated he was disappointed that the Bremerton TCI Manager was not present during this discussion or for the Council Fiscal and Budget Committee meeting. He talked with someone who did get surveyed and they were not informed of an increase in cost if they went for another channel. He questions the validity of that survey. He emphasized the City Council has no choice in approving this proposal and it becomes an automatic increase and it will be up to the City to prove that they should not have the increase. He felt in this particular case the citizens of Bremerton are being governed without representation. He felt TCI had not communicated well with the public when they made these changes and increased the costs. If they increase the cost for FX and then receive 7.5% over what the cost is, it behooves them to make every channel more #1302 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 7 of 19 expensive so they can increase it by 7.5% over their cost. Ms. Jaman stated in response to Mr. Clark not being present, he is at another meeting speaking on the same topic with another franchise authority. He did attempt to attend one Council Committee meeting, however, it was cancelled due to the fact only one committee member was present. The intent of the survey was not to give the subscribers a choice as to whether or not they wanted the Weather Channel or FX, it was already determined that FX would be added. The purpose of the survey was to determine "what channel do we discontinue from our service", not would you want channel "A" over channel "B". Mr. Law stated the person he talked with may have misinterpreted the survey question. Mr..Mont~omer7 stated Ms. Jarman stated the subscribers will have the FX Channel no matter what even though they signed up for a basic service, which they selected. However, now TCI is arbitrarily changing that service without any consideration of what the people want. Ms. Jarman stated they do have consideration for their customers and the contract is prices, packages and channel carriages, which are subject to change with 30 day notification and they do comply with all of those 30 day notifications. ME. MontgomezTemphasized the subscribers have no choice - they either accept it or discontinue it. Ms. Jarman stated or go to other entertainment choices. Mr. Montgomer~ pointed out there is only one cable franchise in the City - TCI. Ms. Jarman pointed out there are two franchises... TCI and Falcon. Mr. Montgomer~ stated Falcon cannot go all over the City. Ms. Jarman stated Falcon has the right to go all over the City, it is not an exclusive franchise. Mr. Montgomery stated if he wished to discontinue TCI cable he would have to move to an area served by Falcon. President Huff-Menees emphasized the only avenue that Council has is to approve the increase unless they can prove that the rules were not followed in some manner with respect to how the increase is applied; and that has not been found. What we know we can count on is that if there are future programming changes then on a quarterly basis we might also expect future fee increases because the FCC has made that allowance. Ms. Jaman stated that is correct, or it would be decreased if the program was less expensive. M/S/C(Colvin/Neville) to adopt the Findings and Order approving TCI's Basic Service Tier Rate of $10.09, and ordering TCI to provide sufficient notice to subscribers and the City before a basic rate increase is implemented. Vote on Motion: In Favor: Overson, Neville, Farr, Huff-Menees, Dawkins, Colvin TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 8 of 19 Opposed: Law, Montgomery Motion carried. 7B - PENDERGAST REGIONAL SPORTS COMPLEX - PHASE I~ KASSEL CONSTRUCTION, INC., CHANGE ORDER #4, #AB95-025 This change order is to include the "Entrance Road and Partial Parking Lot, Alternate 4", for the additive cost of $132,000. This Alternate 4, at the time of contract award, was not awarded to the General Contractor, Kassel Construction, Inc., as the definitive location of the main entrance road had not been determined. This issue has been resolved and the location and associated easement has been granted. This additive cost includes all necessary clearing, rough and fine grading, placement of sub-base crushed rock material, placement of Class B asphalt for both the on-site access road and partial vehicle parking lot area, parking lot stripping, and signage and concrete placement of curbs. In addition to the change order, the contractor, Kassel Construction, Inc., has requested an overall project time extension of an additional twenty-eight (28) calendar days. The new completion date is February 19, 1995. The project "Sources and Uses of Funds" has initially budgeted this expenditure as well as supports this expenditure. Dan Miller, Project Manager, stated as explained Alternative #4 was held back from the general contractor at the time of bid due to the definitive location was not defined totally for the on-site access road for Pendergast as well as the parking area. Since there is now a definitive location and a realignment has been changed on the attached sketch, they are prepared with the contractor's cost estimate for implementing Change Order #4. This change order was originally quoted by the contractor at $139,449, and was negotiated to $132,000, plus sales tax of 8.1%, for a total of $142,692.00, which is under the actual budget number of $143,022. This change was anticipated from the onset of award of this contract. Public comment - none. Mr. Dawkins asked for clarification as to the location of the roadway in relation to the National Guard Armory. Mr. Miller stated that will be the off-site access road coming off Union Avenue just south of what they know as Lynden Road, which is presently a dirt road. Lynden Road is a permanent access road to the Armory as well as a permanent power easement for Pendergast Park. Mr. Dawkins asked if the parking lot project is a separate item? Mr. Miller stated yes, which is also budgeted for in the "Sources-Uses Fund". The cost estimate for the parking lot is $350,000. What they are addressing at this time is the on-site access road that will tie into the off-site access road. Mr. #1670 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 9 of 19 Dawkins questioned the construction time for this proposal? Mr. Miller stated depending on the weather, they are ready to move ahead at this time on the on-site access road. Later, he will come to Council with the off-site access road proposal. Mr. Dawkins questioned the opening date of the Sports Complex? Mr. Miller stated Memorial Day weekend. Mr. Farr questioned the request for an extension of 28 additional days and asked if there would be any impact on the completion date by granting the extension? Mr. Miller stated no, the original completion date was January 21 and with the negotiation of this change order the contractor requested 28 additional calendar days. Some of the calendar days are associated with other impacts that hit.the project on October 26th and went on through November and December. The remaining calendar days the contractor has been granted for time extension is to pick up the on-site access road work. Mr. Neville thanked Mr. Miller for his hard negotiating in keeping this project on budget and on time. Mr. Miller thanked Mr. Neville for his comments and added much effort has been givenby the whole Engineering Department on this project. Mr. Overson noted his appreciation on coming under budget on this project. Also, during the discussion at the Council Operations Committee they asked why the little "entry neck" was left in the plan and the response was in preparatory to an RV park. Mr. Colvin expressed his appreciation of Mr. Miller's response to Council's concerns on this project. M/S/C/U(Dawkins/Montgomery) to authorize and direct the Mayor to approve Change Order #4, and make payment to Kassel Construction, Inc. in the amount of $132,000, subject to City Administrative Policies and Procedures. 7C - PENDERGAST REGIONAL SPORTS COMPLEX - PHASE I; KASSEL CONSTRUCTION, INC., CHANGE ORDER #5, #AB95-026 This Change Order #5 is a three part change order for the overall additive cost of $14,718.50. Part I - The Bremerton Parks Department recommends the inclusion of three (3) each irrigation controllers that better suit their future irrigation central control system. The recommended irrigation controllers are in lieu of the three (3) contract specified controllers. As a result, the contractor, Kassel Construction, Inc. offers the credit amount of $3,433.08 for the deleted specified controllers. TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 10 of 19 Part II - Inclusion of a hot water mixing valve that shall serve both the men's and women's restroom wash basins. The mixing valve is recommended as a safety precautionary measure that will safeguard the City and public from having scalding hot water directly piped to the restroom was basins. The mixing valve will mix the hot and cold water services to a tempered water condition at the wash basins, therefore eliminating a potential injuryhazard to the public as a result of scalding hot water. The additive cost to include this mixing valve and associated installation is $651.58. Part III- This additive cost to the contract is resolution of a claim submitted by the contractor, Kassel Construction, Inc. to rebuild and restore a collapsed earth cut bank located on ball field No. 3 adjacent to the third base line. The collapse and bank slide occurred in the night-time hours between December 19 and 20, 1994. In the wake of the collapsed bank, the earth slid, with such obvious force, to damage the newly installed underground utilities, including the storm sewer laterals, irrigation water supply pipe system, future electrical lighting conduit system, and 20-foot span of the 4-foot high fence line. These underground utilities and fence line were restored along with the rebuilding of the collapsed bank with suitable import fill material. In addition to this restoration and rebuilding of the slide area, an enhanced drainage system was installed to further stabilize the bank from a recurrence of this problem. The originally submitted cost of this claim was $21,648.'39, and through negotiations with the Contractor, the cost of this claim was reduced to the amount of $17,500 as final settlement. Dan Miller, Project Manager, stated the future irrigation central control system was implemented two months after the award of contract to Kassel Construction. The center of the irrigation control system that was specified in the contract was a Rainbird Controller, however, the future irrigation central control system was being centralized with a Griswald type controller that is uniformly used throughout the City's park system. As requested, Kassel Construction returned the previously purchased controllers and received a refund that then turned into a credit for the City. In turn, Mr. Miller took the $3,433.00 and purchased the Griswald parts. The Griswald controllers were a little more costly than the Rainbird, but in looking at the future irrigation control system it will best suit their system and be most cost effective in the long term. Under Part II, the hotwater mixing valve will serves both the men's (4 washbasins) and women's (4-washbasins) restrooms at Pendergast Park. This valve was recommended for a safety precaution measure that will safeguard the City and the public. This will take the #2216 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 11 of 19 120 degree hot water from the domestic water heater and temper it down to 105 degrees. Under Part III, Mr. Miller noted it was difficult to mount an argument with the contractor since he used Mr. Miller's specifications that resulted in a catastrophic problem at the park, which was brought about due to excess rain that fell on December 19. The problem occurred in a machine cut earth bank and having something like this was not expected. In restoring the subject site back to its original condition, he instructed the contractor to enhance drainage to avoid future problems. The contractor is accepting the liabilities for the re-established earth cut bank. This item was submitted to him at $21,648.39, they were able to negotiate down to $17,500 as a final settlement. He emphasized there is sufficient funding in "Sources-Uses Of Funds" to cover the cost of the work. Public comment - none. Mr. Law complimented Mr. Miller on his professionalism in handling the various projects. He asked Mr. Miller if he felt there would be any unplanned earth movement due to the recent rainy weather? Mr. Miller stated everything should be stable within the project area and he has not seen anything unusual for the amount of rain that has fallen. There has been some erosion and the contractor has taken erosion precautions and is aware of things that must be restored at no additional cost to the City. Mr. Farr commended Mr. Miller on his handling of this project. He questioned considering the problem experienced with a slide in a cut bank, has there been an evaluation of other cut-bank areas? Mr. Miller stated there has been only slight erosion to other cut- bank areas and nothing excessive like the subject site. The deepest erosion he has observed has been about eight inches and that material can be featured back in. They had no forewarning that the subject slide area was a problem. Mr. Farr noted in a letter from Kassel Construction that presented their justification for these charges it references Washington State Department Of Transportation Standard Specifications (1994 Edition). He questioned how do those standards apply to a ball field? Mr. Miller explained the Washington State Standards are also the American Public Works Standards, and since this is a public works job, the City does abide by those standards. M/S/C/U(Overson/Montgomery) to authorize and direct the Mayor to approve Change Order #5, and make payment to Kassel Construction, Inc. in the amount of $14,718.50, subject to City Administrative Policies and Procedures. #2358 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 12 of 19 7D - APPOINTMENTTO THE PLANNING COMMISSION - BILL ROBINSON, Q27 There is a vacancy on the Planning Commission, and it is recommended that the vacancy be filled by Bill Robinson. Mayor Hotton pointed out Mr. Robinson has served on the City's Audit Committee for several years and has been employed in the public sector and private sector. Mr. Robinson has a good idea and understanding of the City of Bremerton, both governmental and through the community. She urged Council to confirmMr. Robinson's appointment to the Planning Commission. Public comment - none. Mr. Overson stated he worked with Mr. Robinson at Puget Sound Naval Shipyard when Mr. Robinson served in the Supply Center. Mr. Robinson attended the University of Wyoming and worked for the corporation that developed Pringle Potato Chips. In his opinion, Mr. Robinson will be an excellent addition to this committee. Mr. Neville asked the City Attorney if there would be any conflict of interest with Mr. Robinson serving on the City's Audit Committee at the same time he serves on the Planning Commission? Ian Sievers,City Attorney, stated there is no Charter provision about serving on more than one board or commission and there is no inherent conflict of duties between the two positions. Mr. Law stated after serving with Mr. Robinson on the Audit Committee, he looks forward to having him on the Planning Commission because of his being an outstanding individual that demonstrates good common sense, which is good to have but not always easy to find. President Huff-Menees thanked Mr. Robinson for his willingness to serve. M/S/C/U(Law/Farr) to confirm the appointment of Bill Robinson to the Planning Commission. 8A - ORDINANCE (FIRST READING) RELATING TO CELLULAR TELEPHONE UTILITY TAX AND AMENDING BMC 5.02, #AB95-028 During 1992, the State Legislature directed the Department of Revenue to study tax treatment of the cellular telephone industry. Consensus was reached between the industry, the State, and several major cities that there needed to be uniformity of taxation policy statewide. The AWC drafted a model ordinance for all cities to consider in order to achieve uniformity. The major elements we need to incorporate into our telephone utility tax code are: 1) definition of cellular telephone service; 2) bad debt deduction; TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 13 of 19 and 3) allocation of income between jurisdictions. Paula Johnston, Tax and License Inspector, stated currently the City does tax cellular telephone companies at 6%, the same as regular telephone service. The reason behind the proposed changes has to do with a vastly changing and quickly growing industry that found itself becoming very burdensome to do business in every city in Washington when they were faced with totally different regulations. The State Legislature, in lieu of legislating uniformity, gave cities and the industry a two year time frame to come up with some uniformity that everyone could live with. The Association Of Washington Cities (AWC) submitted a model ordinance to the City in November, 1994, and urged the City to consider all elements and to incorporate the uniform elements into the City's tax code. The amendments to the City's tax code are the essential elements that are missing from our code and ones that should help the cause of keeping this out of the State Legislature, but not be burdensome to the City to incorporate. The one change that will cost a little money is allowing a bad debt deduction. Currently, the City does not allow bad debt deductions for utility businesses that are taxed at the utility rates. This deduction will cost the City approximately $1,000 in lost tax revenue per year, if approved. While reviewing the Utility Tax Code, Ms. Johnston did find that the City was allowing the telephone companies, as a whole, another type of deduction that she is recommending to be deleted, which is a fee allowed to deduct the tax that the companies pay the City. The City does not allow the other utilities, such as gas and power, this deduction. That change will increase the City's tax revenue from telephones approximately $35,000 per year. Public comment - none. Mr. Colvin asked the City Attorney if there was any basis for allowing the telephone company the deduction in the first place? Ms. Johnston pointed out it was in an old section of the code that has been in place many years and it was never a statutory basis to have it implemented. Mr. Colvin asked if there would be any legal implications if a change is made at this time? Ian Sievers, City Attorney, stated it makes sense for the City to apply the City's B&O tax uniformly among different classifications. That deduction, if it makes sense, should be applied to other utilities as well and since that deduction is not allowed for other classifications, the telephone company should not be allowed to use it as a deduction. Mr. Colvin asked if the telephone company had been apprised of the City's intent to make a change? Ms. Johnston stated not directly, but through the Agenda publication. Mr. Overson complimented Ms. Johnston on her thorough reading of #2605 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 14 of 19 the ordinance and recommended changes. M/S/C/U(Overson/Colvin) to pass ordinance on first reading relating to utility taxation of cellular telephone service and amending BMC 5.02. 8B - ORDINK~CE (FIRST READING) CREATING ANEW FUNDTO BE CALLED THE GIFT I~D DONATION FUND, #AB95-029 During the course of presenting the Preliminary 1995 Budget, the Mayor and staff raised with the Council the issue of budgeting and accounting for donations to the City. At that time, the Council expressed their preference for dealing with these transactions in a separate fund. This ordinance will create a new fund to be used in budgeting and accounting for al monies donated to the City. Rich Hanna, City Treasurer, stated as mentioned this issue did arise from the presentation of the Mayor's preliminary budget to Council late in 1994. One of the objectives of this proposal is to provide a mechanism where monies donated to the City by citizens or corporations can be held apart in an accounting sense from the funds used for the on going operations and maintenance of different funds of the City. Such action would allow a greater degree of confidence on the part of the persons donating those. monies that they are in fact being used for what often times' are fairly specific intentions. And, to provide a more convenient mechanism whereby unexpended funds within the same fiscal year can be carried over to ensuing years with a higher degree of certainty they will not be expended for routine operation and maintenance purposes. It is intended to use the proposed fund to provide accounting for donations that might be made to any and all departments of the City. The Parks Department was instrumental in initiating this proposal after they had a number of citizens express their desire to donate fund, but were somewhat hesitant due to a lack of certainty about how the funds might be accounted for. Section #4 of the ordinance duplicates a number of specific criteria that exists in current code relating to the present Rescue #1 Fund. The proposed ordinance would eliminate that Fire Department specific fund and incorporate it into this more generic donations funds that accommodates the needs of all the departments within the City. Public comment - none. Mr. Colvin asked if each Department would have a separate account number within the fund? Mr. Hanna stated Mr. Colvin was correct in that a single fund would be set up for all donations, but within that single fund will provide a discrete accounting. Mr. Colvin asked if there are any provisions for growth...interest generated #3065 TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 15 of 19 by these fund and would that be expendable within that specific department? Mr. Hanna stated yes, language within the ordinance conveys the earnings on the collected balance of the fund would be distributed proportionately among all the various funds held. Mr. Law asked if there will be any difference as to who signs the check for disbursement of these funds? Mr. Hanna stated yes, the intent of the proposed change is to not become overly burdensome with who has signature authority over the different components. Mr. Law stated for clarification then the Parks Department will sign off disbursements for their donated funds rather than Mr. Hanna. Mr. Hanna stated he believes that is the intention. He has no intention to take great liberties with donated funds to benefit the.Parks Department. As to processing payment for things, he does not anticipate that process to be any more complicated than it is now. Mr. Law asked if Mr. Hanna had talked with any other departments besides the Fire Department? Mr. Hanna stated yes. Mr. Overson reminded Council that recent budgetary action was taken to use funds out of the Rescue #1 fund to procure special life saving devices for the Fire Department. These funds are a real asset to the City, are correctly spent and this proposal helps to formalize some of the processes used in expending the funds. He encouraged citizens to make donations and to feel confident that such funds will be properly and correctly expended. M/S/C/U(Farr/Montgomery) to approve ordinance on first reading creating an expendable trust fund to be called the Gift and Donation Fund and designating the purpose and uses thereof and repealing Ordinance 4191. 9A - 75% PETITION FOR THE ANNEXATION OF THE SCIEPKO/LUNDE AREA; 75.56 ACRES~ AND ORDINANCE (FIRST READING) ANNEXING AREA KNOWN AS SCIEPKO/LUNDE AREA AND FIXING EFFECTIVE DATE OF ANNEXATION, #AB95- 030 The City of Bremerton first accepted this annexation proposal February 8, 1995 in their regular meeting. The petitioners have now submitted a legally sufficient petition according to the City Council's instructions. According to RCW 35.13.125 the City Council must: Hear public testimony for and against the proposal of annexation of the site; and The City Council must then decide this issue by either approving on the first reading and passing it on the second reading, or by rejecting the ordinance for annexation. TAPE #1263 City Council Reg. Mtg. Minutes February 15, 1995 Page 16 of 19 President Huff-Menees asked the "Appearance Of Fairness/Conflict Of Interest" question with all Council members being seated. Terrie O'Neill, Municipal Services Coordinator, stated this is the 75% stage of the petition method of annexation, which requires signatures from property owners in the area to approve the process of annexation. In this particular annexation, 100% of the annexation area is consenting and asking for annexation into the City of Bremerton. The site consists of ten tax lots, 75.56 acres, and is adjacent to the Anderson Creek Watershed property. If the annexation is accepted and an ordinance passed and approved, it would take affect upon the affirmative conclusion of the Boundary Review Board's action on the application, which has already been submitted. TAPE #1264 Currently, there are two homes with a population of 3 persons within the subject area. The intent of the property owners is to develop the area into an industrial or business development. The area lies within recently adopted urban growth boundaries for the City of Bremerton by Kitsap County and is located on a major highway with utility and other services immediately available. There are some services the City of Bremerton is not ready to offer immediately and discussion has been held with other jurisdictions that are willing to cooperate with the City to provide services to that area. Public comment - none. Mr. Colvin questioned the number of voters within the proposed annexation area? Mrs. O'Neill explained the 75% in this method of annexation is based on the assessed valuation of property, so that means property owners representing 75% of the total have to give their approval. In this case, 100% approval has been given and there are actually three voters within the subject area. Mr. Law questioned for clarification the ownership of properties within the annexation area. Mrs. O'Neill pointed out none of the subject parcels are City owned property. Three properties within the area are not owned by Sciepko/Lunde, however, they do have the option to purchase those parcels. She emphasized the owners of those three sites have signed the petition to annex. Mr. Farr questioned the services the City was not providing? Mrs. O'Neill explained temporary availability of sewer is an issue for that area, especially if the City is providing a high zoning, such #0000 TAPE #1264 City Council Reg. Mtg. Minutes February 15, 1995 Page 17 of 19 as Industrial or Business Zoning. Although the City does intend to provide sewer service to that area, it may not be available for a number of years. The City of Port Orchard has provided a letter of availability for temporary sewer to the site. Also, there have been some discussion with Fire District #7 regarding fire services if the size of the development does not merit the City of Bremerton bringing out its fire services. Bremerton water services are currently available to the site. Mr. Nevtlle pointed out the supporting documentation referenced "EXHIBITS A, B, C, D, E,", however, none were included. Mr. Law asked the City Attorney if Council can approve this item without the availability of Exhibits A, B, C, D, E, if they are provided at the time of second reading of the ordinance? Ian Sievers, City Attorney, stated he felt Council could do that with the ordinance, however, Council can't proceed with the ordinance until they approve the petition, which is included in Exhibit A. Mrs. O'Neill stated for clarification that what Mr. Law is referring to are the original petitions, which are on file in the City Clerk's office. Mr. Sievers substantiated the fact the petitions were filed with the City Clerk. Mr. Colvin asked if the City had met all legal requirements? Mr. Sievers stated he felt Council could go forward with the requested action as presented. Mr. Neville stated for the record the previously mentioned Exhibits were presented to the Fiscal and Budget Committee. M/S/C/U(Montgomery/Colvin) to a) hold a public hearing to hear testimony on this issue; and b) approve this 75% Petition and ordinance on the first reading annexing an area known as Sciepko/Lunde Area and fixing the effective date of annexation. 9B - RESOLUTION NO. 2496, AND ORDINANCE (FIRST READING) FOR THE GOLD MOUNTAIN GOLF COURSE COMPREHENSIVE PLAN AMENDMENT AND REZONE, #AB95-031 The Bremerton Park Department intends to develop a 180 acre, 18 hole addition to the existing 190 acre, 18 hold Gold Mountain Golf Course. In order to receive land use approval for the project, the underlying zoning should appropriately be zoned "Parks and Schools". To facilitate this rezone the site should have a Comprehensive Plan Map Designation of "Parks and Open Space". The purpose of this requested PlanAmendment and Rezone is to allow the property to be developed as a golf course. The Plan amendment and zoning will further protect and preserve the site for future park needs. President Huff-Menees asked the "Appearance Of Fairness/Conflict Of Interest" question with all Council members being seated. #0430 #0442 TAPE #1264 City Council Reg. Mtg. Minutes February 15, 1995 Page 18 of 19 Jack Allingham, Current Planning Division, provided a map showing the location of the Gold Mountain Golf Course, which has been in existence for quite some time. The City, when it revised its Zoning Ordinance in 1988, inadvertently designated the Golf Course as Forest Management because it was adjacent to and surrounded by Utility owned lands. The City is in the process of developing an 18-hole expansion on the Golf Course and the Forest Management Zone won't allow that type of development. The Parks and Recreation Department has requested to change the zoning from Forest Management to Parks and Schools. The Comprehensive Plan designation for this site is also Forest Management. The Comprehensive Plan, in this case, is governed by a Utility Land Management Plan. In Order to achieve consistency with the rezone and'the Comprehensive Plan, the Parks Department is also requesting a Comprehensive Plan Map Amendment to Parks And Open Space. The attachment to the ordinance and resolution describe the subject area using Townships, Section and Range legal description. The Planning Commission recommended approval at a public hearing on December 20, 1994. Public comment - none. Mr. Dawkins asked if this proposal included the existing Gold Mountain Golf Course? Mr. A11ingham stated yes, it would rezone the existing golf course as well. Mr. Law questioned who would receive the income from the trees logged off the new course? Mr. Sievers stated it is a little outside the scope of the Comprehensive Plan and zoning change. Shortly, he will be addressing the economic relationship between the owner and the user as soon as this action is completed, which will address where revenues go from timber cutting and lease payments. Mr. Overson pointed out Council is to stay away from economic concerns when considering rezones. He noted part of the Findings Of Fact of the Planning Commission was these properties were declared surplused to the needs of the Utility, which is an important element. Also, the Planning Commission recognized that this is a higher and better use of the real estate involved than its current use. M/S/C/U(Overson/Colvin) to approve Resolution No. 2496, amending the Comprehensive Plan Map of the City of Bremerton in the vicinity of the Gold Mountain Golf Course. M/S/C/U(Overson/Montgomery) to pass ordinance on first reading, amending the official Zoning Map of the City of Bremerton for the Gold Mountain Golf Course. TAPE #1264 City Council Reg. Mtg. Minutes February 15, 1995 Page 19 of 19 With no further business meeting adjourned at 7:30 P.M. KATHLEEN L. McCLUSKEY, City Clerk SH sident City of Bremerton KLM/SH-M/me cc: Normal Distribution File/Vault