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HomeMy WebLinkAbout12/20/95TAPE #1345 UNAPPROVED DRAFT COUNCIL APPROVED JAN 1'7 1996 CITY COUNCIL MEETING MINUTES DECEMBER 20, 1995 #0017 #0028 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, December 20, 1995, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Bob Winters, A1 Colvin, Morrie Dawkins, Carlos Montgomery, John Law, David Farr, Richard Neville, and Lon Overson. City Clerk Kathleen McCluskey was also present The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Major L. LaVergne Nickerson of the Salvation Army. CONSENT AGENDA A. Minutes - November 15, 1995 #AB95-271 M/S/C/U(Neville/Colvin) to approve the Consent Agenda as presented. CLAIMS/CHECK REGISTERS 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 December 20, 1995, the Council does approve for payment those vouchers included and further described as follows: 193516, 193517, 193535 through 193758 in the amount of $460,194.06. COUNCIL MEMBER REPORTS Mr. Winters wished everyone a Happy Holiday and a very Merry Christmas. He enjoyed the legislative meeting in Silverdale on Tuesday evening. Mr. Colvin asked the City Administration to clarify a point that was made in a recent news article in The Sun that indicated the City was issuing Building Permits out near the Wastewater Treatment Plant. It was his understanding those permits are being issued by Kitsap County. He was pleased to receive a letter from B.O.Davis, who was a black Commander of the 99th Pursuit Squadron during WWII and one of Mr. Colvin's idols. Mr. Colvin will be celebrating the holidays in California and wished everyone a Merry Christmas and Happy New Year. TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 2 of 23 Mr. Dawkins stated he has been pleased with the number of Christmas light displays throughout the City. Mr. Montgomery wished everyone a very Merry Christmas and a safe holiday. Mr. Law hoped everyone has a very Merry Christmas. Mr. Farr wished everyone a Merry Christmas and a Happy New Year and thanked Mr. Law for the "reindeer". Mr. Neville also thanked Mr. Law for the novelty reindeer and wished everyone a Merry Christmas and reminded everyone to pick up their Winter and Spring Activity brochure from the Bremerton Parks and Recreation Department. Mr. Overson reported he enjoyed the festivities downtown this past weekend. He particularly noted the decorated Christmas Tree in Wycoff Park and he anticipates the Festival of Music event will become an tradition in Bremerton. Mrs. Huff-Menees expressed her appreciation to John and Niva Law for their gift. She also encouraged everyone to drive by Councilman Montgomery's house to see his "Santa's Reindeer" display. And, she wished everyone a happy and safe holiday. MAYOR'8 REPORT Mayor Lynn Hotton wished everyone a Merry Christmas and hoped every had a safe holiday, and if they drink to please not drive. PUBLIC RECOGNITION Larry Dickerson, Bremerton resident, referenced a prior Council meeting where Councilman Carlos Montgomery made a statement regarding the fact that he only represents registered voters in his District and that no one else mattered. This statement upset him greatly and he called Mr. Montgomery personally and asked him to apologize to his constituents and to the people of the City of Bremerton, but he refused. He also asked Mr. Montgomery to maybe clarify what he meant as to compared to what he might of said, which he responded that he was preparing a statement. As of this date, Mr. Montgomery has not made a statement addressing his prior comments. He believes Mr. Montgomery's statement was unconstitutional and is a violation of his oath of office as a Council member. He was also disappointed in some of the other Council members, who were silent following Mr. Montgomery's comments. He asked that Mr. Montgomery step down as City Councilman of District #8. It also concerned him that the news media chose to let this go by without any comment, even after he contacted the City Editor. TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 3 of 23 Gordy Byrd was pleased to report that through the public's generosity he was able to collect 110 stuffed animals for the Kitsap Community Action Head Start Program. Ruth Reese, new downtown business owner, thanked everyone who participated in the second annual Festival Of Music. Emily MoshaV reported on December 15 John Marcus Duwane Frazier died in a tragic hand gun accident and his family is devastated by the loss. Young Marcus was a former Bremerton High School athlete and earned a College Wrestling Scholarship. A special public donation fund has been set up, to help the family with funeral expenses, at Kitsap Community Action Program, 1201 Park Avenue, Bremerton, WA 98337; or contributions may be delivered to the Mayor's Office. Checks should be made to the Marcus Frazier Fund. Information may be obtained by calling 478-0364. 7A - CONTRACT AWARD FOR HANFORD AVENUE WATERMAIN REPLACEMENT -- LYDEL CONSTRUCTION INC., #AB95-272 Bids were opened for the Hanford Avenue Watermain Replacement Project on December 4, 1995. Seven bids for this project were received. The low bidder is Lydel Construction, Inc. in the amount of $117,276.06, including sales tax. The Engineer's estimate prepared on completion of design for this project was $123,383.18, including sales tax. The action before the City Council is approval of a contract for construction of this project. Tim Richard, Senior Engineer, stated this project is the construction of an 8-inch watermain/Hanford Street to Wheaton Way and Bledsos. The street has an existing 4-inch watermain and the Fire Department has requested that it be updated to 8-inch in order to provide adequate fire flows for this street as well as the surrounding neighborhood. Lydel Construction Inc., was the low bidder on the project out of seven bids received. The Engineer's estimate prepared for this project upon completion of final plans was $123,383.18. The 1996 budget includes $98,000 for construction of this project; therefore, there is a $20,000 shortfall. It is recommended that the additional funding for this project be allocated out of the Water Capital Fund and that the project from which these funds will be identified later in the year as the budget year continues is in the 36-inch watermain project. This will be the first time the City has contracted with Lydel Construction Inc.; therefore, a reference check was made with Kitsap County P.U.D., who had 12 miles of watermain installed by Lydel as well as the City of Mukilteo, who had also had recently contracted with Lydel, and both of their responses was very favorable. Public comment - none. #0697 TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 4 of 23 Mr. Farr asked if the increased flow would be just to the fire main or will it help the ratepayers in that area with low pressure problems? Mr. Richard noted they had not received any complaints from residents in that area about low water pressure; however, it will help pressures during peak flows. Mr. Overson acknowledged the appropriate documentation to handle the transfer of funds to cover the $20,000 shortfall was not included. He questioned Council giving approval to this item knowing there are not sufficient funds in the budget and asked if there be some other vehicle to cover the funding? Mr. Richard explained a budget adjustment to the Water Capital Fund will be required to cover the cost. There are sufficient funds available in the Water Capital Fund, but it was just not designated for this specific project. Mr. Overson asked the City Clerk what kind of problem Council would be developing for itself by approving a contract where the funds are not "technically in the budget"? Kathleen McOluskeV, City Clerk, stated she was not sure why the Budget Adjustment did not accompany this request; however if they follow up with the appropriate Budget Adjustment before spending funds, she saw no problem. Mr. Richard affirmed that was their intent. M/S/C/U(Overson/Neville) to approve this contract for $117,276.06 with Lydel Construction, Inc. for construction of the Hanford Avenue Watermain Replacement Project contingent upon a Budget Adjustment being processed fairly quickly, and authorize the Mayor to execute the same subject to City Administrative Policies and Procedures. 7B - CALLOW AVENUE BASIN CSO REDUCTION PROJECT CHANGE ORDER #2 WITH PAPE & SONS CONSTRUCTION, #AB95-273 Construction of a 24" water main in First Street from Montgomery to Hartford is included in the 1995 & 1996 Water Capital Budgets. Staff requested a proposal from Pape & Sons Construction, Inc. for constructing the portion of this watermain from Montgomery to mid- block between Callow and Wycoff. Construction of this portion under the Callow CSO Contract would allow coordinated surface restoration at First & Montgomery, reduce impact to the Navy's First & Montgomery gate, and avoid traffic control conflicts during 1996 construction. The cost provided by Pape & Sons Construction for this work is $111,275.55. Funds for this change order will be expended from the Water Capital Budget. It is requested that this change order not be included in the administrative change order authority of $100,000 granted to the Mayor for this project by the City Council on June 14, 1995. Tim Richard, Senior Engineer, reviewed information in the summary statement and listed the following three reasons why Pape & Sons #0829 TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 5 of 23 were asked to provide a cost for the designated work: (1) they had torn up a portion of First street as a part of the Callow Avenue CSO Project, which they will need to restore (this project would tear up that same section again and in order to avoid that duplication of effort and expenditure of funds it was felt it was best to install this portion first); (2) the Navy will be locating a gate to the Shipyard at First and Montgomery and by completing this work and getting it across Callow Avenue will avoid impacting construction of the gate entrance; (3) 1996 will be a big construction year for the City with the construction of the second phase of Callow Priority I, as well as work on Kitsap Way, and getting this project across Callow Avenue at this point should avoid another traffic conflict during the 1996 construction season. Funds are budgeted in the 1996 Water Capital Fund and the price quoted by the contractor is consistent with the Engineering estimate for this work. Public comment - none. M/S/C/U(Dawkins/Farr) to approve Change Order #2 to the Callow Avenue Basin CSO Reduction Project Contract in the amount of $111,275.55 and authorize the Mayor to execute the same, subject to City Administrative Policies and Procedures. Mr. Overson complimented the Public Works group for putting this together and planning all that work at one time, which will be less intrusive to traffic later on. 7C - SINCLAIRLANDING ASSOCIATION MEMORANDUM OFUNDERSTANDING: CITY APPROVAL, #AB95-274 The Sinclair Landing Association (SLA) is the non-profit corporation formed to coordinate the financing, public discussion, and development of the public facilities necessary for the public/private re-development program: The parking garage, multi- modal transportation terminal, possible marina expansion, streets and other public spaces. The attached Memorandum of Understanding is proposed for signature by al four participating public agencies plus Fletcher Wright. The public agencies are: City of Bremerton, Kitsap Transit, Port of Bremerton and Kitsap County. The SLA Board of Directors membership listing is attached. Upon successful completion of the Memorandum of Understanding, the SLAwill contract with Fletcher Wright and the governmental parties to develop the project facilities through a series of negotiated design and construction contracts. Without the SLA, or a similarly constructed organization, the waterfront project will not have an organization capable of TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 6 of 23 providing the needed buffer between the public and private sectors. This buffer organization is essential to allow use of modern financial technology so that public/private partnerships can occur effectively. The following objectives are sought in public-private partnerships: 1) Coordination of the public elements with the private elements of the overall development program. 2) Financing that enjoys lower public interest rates and private- side flexibility in development and construction. 3) Collaboration among the four public agencies, the private development team and the Bremerton community (through the Board's formal and informal input, reporting and dialogue). Without the establishment of such a technically appropriate non- profit organization, the project's private partners will not be able to fulfill the concept. Mayor Lynn Hotton stated the role of the Sinclair Landing Association in this process is multi-fold: (1) to work on the public involvement process, such as was done on the Gorst-Bremerton Connector project, so that people within the community will feel comfortable with the project. (2) To work with the Legislature on things such as passenger-only ferry service, as well as dealing with the public/private partner aspects at the State level. (The public/private partner initiative on the 1995 Legislative docket was a very contentious issue primarily because it talked about toll roads, etc.). What the City would like to see happen is to approach the Legislature and get their blessing for this kind of public/private partnership proposal. (3) To bring all of the entities together to talk about how each of the various components fits into the whole project. (4) Efforts to secure financing for some of the elements of the project. Non-profits entities have tax advantages over "for profit businesses". She emphasized the Statement Of Understanding binds the City for its financial contribution to see that the SLAactivities are carried out and it also binds the City to come to the table to talk with all the other jurisdictions about this project. This document does not bind the City in any other financial way, does not bring the City's waterfront property into this framework nor does it involve any financial responsibility the City may or may not have with any of the rest of the project. Council has met with Ben Pollock, the City's negotiator, and reviewed the letter of intent guidelines that he will be working on in negotiating the business deal with Fletcher Wright. That letter of intent will come to Council within the next few weeks and that will be the business document for the City's waterfront property and then for its financial TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 7 of 23 responsibility that we may or may not have with the rest of the project as well as outline what the City expects from Fletcher Wright. Mayor Horton noted the SLABoard is made up of many people from the community, who have been working a long time on trying to see downtown development happen. If they don't have a financial interest invested in this project, they certainly have a time and emotional investment. Mary McClure, Executive Director of the SLA, stated she was honored to work with the SLA Board Of Directors. It is a group of the most conservative and cautious business people and civil leaders that she has worked with in Kitsap County. This group not only has concern to be fiscally conservative, but also deeply commitment to this project working and to the City of Bremerton redeveloping and becoming an exciting, wonderful place to live. One of the important elements built into the Memorandum Of Understanding is a real example of fiscal conservancy that she described. The Board is committed, in the Memorandum of Understanding, to come back to each of the participating agencies within 30 days of its going into effect with a full budget and work plan for their review and understanding. They are then committed to come back in 180 days with at least a draft of Master Agreements, at which point each of the agencies can look further at the role of the SLA and the project. There will be quarterly reports to the participating entities and a deep commitment to responsiveness and responsiblity to all the public agencies and the business community that is so dependent on this project working. There are a number of issues that have been brought up over time, one is the role of passenger- only ferries, role of the U.S.S. Missouri and the importance of those elements in the basic feasibility of this plan. Neither of those elements are absolutely required for this project to move forward. This project was basically conceived before the U.S.S.Missouri was a star on the horizon and it is feasible without the full passenger-only service that is deeply desired to serve Bremerton. Those will be enhancements and assets, but this project has the potential to stand on its own and to work. When this project was first started with the City authorizing Fletcher Wright to work on development with the City, one of the issues she felt strongly about was the importance of public sector cooperating and justifying the trust that the private sector has placed within you. In examining public/private partnerships in other cities, it is clear that the place where they most frequently fail is on the public sector side. She did not want to see that happen on this project because it is too strong and good a project to fail in that way. Finally, all of the other jurisdictions that will be partners in this undertaking and the SLA Board are looking to the City for leadership. The other jurisdictions are responsive and supportive with several of them already signed on, but they are waiting for the City to take action. TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 8 of 23 Mayor Hotton noted this Memorandum Of Understanding has been before Kitsap Transit, which they approved and the Kitsap County Commissioners, who gave their approval pending the City Council's ratification of the document. Today she attended the Port Or Bremerton's board meeting where they discussed the issue and unanimously supported the concept of the SLA, but because they are a special taxing jurisdiction and by Washington State Law have special requirements, so they want to make sure there are legal grounds for their signing on to this project. The Port will take up the budgetary issue in January. She agrees with Ms. McClure that the other entities are looking to the City of Bremerton for leadership in this issue. If the City does not participate, the project will not happen and some of the other jurisdictions may choose to not be parties, but the project will move forward. She strongly urged Council to approve the proposal. Matt Ryan, Kitsap County Commissioner, quoted a line from Shakespeare "that there is time and affairs of men when the tide is running that you take it or you're forever in the shallows", and he believes this is one of those times. He sees this as a wonderful opportunity with the private sector joining in and he encouraged Council to give this serious consideration. He is also concerned that in the presentation made for obtaining the U.S.S. Missouri, they did very strongly show the waterfront development project and if it did not move forward it could hurt that effort. Kitsap County recognizes a healthy and prosperous Bremerton is good for Kitsap County and the Commissioners encourage the City to act upon this Memorandum Of Understanding. Del Knauss, Bremerton resident, posed the question if Council desired to change the Memorandum of Understanding, could they legally make those changes since the City Attorney was not present at this meeting? And, is this a legally binding document? President Huff-Menees explained the City Attorney provided Council with a memo of several pages addressing the Memorandum Of Understanding and concerns raised during a Council Study Session. Council also has available the legal Council that prepared the document and he is available to answer questions. Mr. Knauss asked if the wording in the document could be changed once it is approved by Council? President Huff-Menees stated yes, it is a working document. Mr. Knauss stated for clarification that Council would be signing the agreement and then go back and make changes after it has been in front of the public. President Huff-Menees explained changes could be made if Council identifies what it is they want addressed. Mr. Knauss asked when would the public find out if changes are made? Also, he could find no mention of "public involvement" in the subject document. He has heard or read several times that redevelopment of the downtown area is contingent on foot ferry service. He quoted from the document: "commitment of TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 9 of 23 construction will not be continqent on increased ferry service". A few months back it was told in presentations that $75,000 would be going to the Roosevelt Field Fund; however, he did not see that stated in the document. He is hearing that part of the plan is the possibility of a new City Hall located on the waterfront. He pointed out that proposal has never been presented to the public, but he guessed that was something that could be written into the document later. Bob Gunter, Attorney with Preston, Gates and Ellis and legal Counsel to SLA, stated in terms of how the document can be adjusted, every agency has its own practice of what the attorneys have talked about doing and that is the bodies basically approving the agreement substantially in the form of the draft document. When all the agencies have acted, they will then put together one final clean draft that includes everything. He believed everyone was very close on all the legal issues in terms of putting that together and then that document will be signed by all the parties. The types of changes they have been working on currently have been referenced by the Port of Bremerton and Ian Sievers, the City's attorney, and have been relatively minor modifications. An issue was raised about public involvement, and there is reference to pubic involvement in Paragraph 4 of the Memorandum Of Understanding. One of the task of SLA is to "include representatives of all contracting parties and such other members of the community as the board deems approDriate to serve in an advisory capacity. SLA shall also serve, if feasible, in a financing and management role and shall facilitate public overview and input to the project development." So, that is contemplated to be one of the major roles of the organization, that of course depends on what the government agencies desire the SLA to do, but right now they are very much involved in putting that type of program together. Another feature that has been added recently at the request of one of the government parties, is to make sure the SLAcomes back after 30 days when they have a better chance to talk of these issues with Fletcher Wright and provide a more detailed scope and budget for the information of the contracted parties. Earl Smith, Economic Development Council, stated he served on Flagship, Leland Group Study, Tonkin Hoyne Study and he worked with Fletcher Wright. He believes that right now the right people and the right place are the key elements to make downtown revitalization work. He finds Randy McGreal a pleasure to work with and to hear him discuss the investors that he has to leverage capital, what his company is willing to do, what he has been able to do with occupancy rates in buildings in order to get a secondary mortgage, is really a plus. Having funds available now for operations is a plus as is having Karen Schmidt and Brad Owens from Kitsap County in the right place in the State Legislature as well TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 10 of 23 as Tom Huff on the Appropriations Committee, and Alice Tawresey in the Transportation Commission. Those individuals can help and what Sinclair Landing allows is the ability to speak with them with one voice and if that consolidated effort is lost, he believes the opportunity will be lost. The public/private partnership will share the risk and some of the liability. He offered the EDC's help, if needed. Cecil McConnell, Almira Drive, stated he could not discuss the pros and cons of the project because he was not that knowledgeable about the project and he was not sure anyone else in Bremerton knows what will finally be in place on the waterfront. He referenced the fifth WHEREAS (pg. 1 of the Memorandum Of Understanding), and pointed out: "the parties are committed to cooperating and to negotiating such agreements and providing such properties, services and assistance...". It concerned him that the word "and" makes it a hardcore commitment on the City's part to turn over those properties, which is further backed up by Section 14 when it refers to: "Venue and Process - In the event any party deems it necessary to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties hereto agree that any such action shall be initiated in the Superior Court of the State of Washington situated in Kitsap County." To him the words "right" and "obligation" means there is a binding contract. The entire document in itself is so ambiguous that it could be tossed out. He wanted to know the source of funding for Bremerton's contribution of $50,000 He asked if the positions on the SLA Board were permanent positions and would the City's representation be changed in the event they lose their public office position to someone else, or would they remain on the board? He referenced Paragraph 6 and pointed out Fletcher Wright can terminate any time they wish, but if Bremerton decides it does not have the money to proceed, they must get a majority of the government parties to agree that they don't have to participate in the project. He is not opposing the project persay, but rather the wording of this document that leaves too many questions unanswered. He referenced Section 7, and lent his support to its passage only, which would authorize the City's contribution of $50,000. He recommended that the document be cleaned up so that a layman could understand what it was actually saying. Beverly Woods, Executive Director Bremerton Area Chamber Of Commerce and member of the SLA Board of Directors, stated over three years ago a group of community and business people got together to start working on a vision for Bremerton. She believed it was the first time in the history of Bremerton that representatives from City Administration, Parks and Recreation Department, City Council, Department Of Community Development, Port Of Bremerton, ECD, Bremerton Main Street Association, Chamber Of TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 11 of 23 Commerce, downtown business owners, managers of downtown businesses and citizens at large sat down together and sought a vision for Bremerton. From that point on to today, steps and processes brought forth that vision of a revitalized waterfront area that extends way into the downtown core with a marketplace atmosphere, businesses, housing, a bustling area, an expanded marina full boats, to the south the Missouri, fast passenger ferries arriving at the terminal bringing both commuters and tourist from Seattle to help spend money in Bremerton. She still envisions that picture and the Chamber started out putting in a small amount of money, as did other groups, and matching grant funds were obtained that enabled the forward movement to this point. The next step is critical in putting together the public/private partnership that will take this project to a successful end. Her prior experience before coming to Bremerton offered her the opportunity to work on two projects that involved public/private partnerships. There were not as many agencies involved in those projects, which made it a little easier, but they had a vision and a community group like the SLA that was made up of a diverse group of people from their area that were concerned and they developed a revitalization project for their downtown through a public/private partnership. Through that effort, they developed a 16,000 open air amphitheater that with private monies also helped build a 18-hole golf course, walking paths, a wetlands area and a sailing pond. Their investments were returned many times fold. She had the pleasure of visiting that community a couple of weeks ago and enjoyed actually seeing in real life the vision they had in those early years of planning and that is her hope for Bremerton. Roy McInnis, Maple Street, asked what will make this project any different from other proposals? Can the citizens of Bremerton be guaranteed there won't be a lot of waste of funds? When the project is finalized will the citizens of Bremerton have a vote or is it something that will just go through? How many of the SLA Board are actually City citizens? Charlie Brown, East Bremerton resident, stated he also attended the Port of Bremerton meeting held today. He views this document as a contract and once the City signs it they will be obligated to proceed. He asked if all the government agencies are happy with this proposal, why is Paragraph 14 included whereby if there is a dispute it will be settled in Superior Court? What this means is that if the Port Of Bremerton decides it is too expensive to invest in this project, the other jurisdictions can take the Port to Court. He is not an attorney, but his interpretation leads him to believe Kitsap County gives up some of their rights. He questioned the meaning of "SLA may receive, hold, approve transfer of facilities"? And, as a taxpayer how does this benefit him, i.e., will it lower his property taxes, sewer charges, etc.? He urged TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 12 of 23 Council to not get rushed into signing something. The Port of Bremerton has an 8 million dollar lawsuit against them for something they did 10 years ago. Joe Mentor, Bremerton property owner, related a recent conversation he had with some people who evidently know what is going on with the SLA project and he was shocked by what he heard. That discussion included the information that a large parking garage would be built and he asked who or how will that garage be funded? The response he received was that the vehicles parked on City streets will be forced to use the parking garage. Then he asked what will be put on top of the parking garage? The response he received was a 30,000 sq. ft. City Hall facility, which in his opinion could cost $50,000 per month, if it was rented. The discussion also addressed the development of a 80-room hotel and he asked how were they going to get a lease signed on a hotel. The response was there wouldn't be a lease, but rather a management contract so it sounds like there is a lease. He asked what else would be included and the response was three restaurants, which he then asked how will those be financed? The response to that question was they would put them together like the restaurant at the Port of Bremerton. He believes what is being talked about here is not something the City wants to move ahead with so quickly. He did not believe, under State law, that the Port of Bremerton has the authority to put a $50,000 grant into this project. He also believes there are better ways for the City to use their $50,000 than to get another planning study at a cost of $300,000. When he looks at the City of Bremerton he sees that the downtown is dead and all the revenue that came from previous facilities are no longer in Bremerton and are now in Silverdale. He was also concerned about where the revenue will come to support the City and is alarmed that the East Bremerton business corridor along Wheaton Way will lose its economic viability as well. He also believes that Bremerton/Kitsap County will not be successful in their bid to get the Missouri. What the City needs most in the downtown area is people and housing. It also concerned him that the Director of SLA will receive a salary greater than what the Mayor of Bremerton receives. He did not want to see Bremerton become a second class suburb of Silverdale...100 buildings are being built in the County for every one that is built in the City. The City has to do something to re-establish itself as a center of commerce in the County. Russ Johnson, former member of the City Council and a SLADirector, congratulated the City Council for staying on course with the upgrading of utilities, completion of necessary studies and after a number of starts figuring out collectively nothing would happen on the waterfront unless there was significant private sector investment in Bremerton. He believes the City was magnificently TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 13 of 23 successful in their response to the RFP whether or not Fletcher Wright was the winning team. He wasn't sure how he missed hearing about the idea of a new City Hall being built on the waterfront, but at all the meetings he has attended that had never been mentioned. One thing that has not come out to the public is this is really a private sector development with the exception of the proposed parking garage and transit facility. Such development would mean $70-80 million dollars of private sector capital coming into Bremerton and what they build, whether or not it is a condominium or Safeway Store, is frankly up to the private sector as long as it complies with the Comprehensive Planning and zoning. By getting into the Board Rooms where the big dollars are, we are in the fast lane and the City is on the cutting edge of how things will be done and there won't be any precedent for a lot of things that have to be done. Many of the issues that come up will have to be dealt with by legal counsel and luckily SLA and the Fletcher Wright group bring some of the finest legal and financial minds at the City's disposal. Many of the developments in Kitsap County are competitive within the County. The way this project is playing out, for once we are talking about King County money coming into Kitsap County via Bremerton and he believes that was why there is such wide "County" support. He is also a member of the Bremerton Parks and Recreation Commission, although he was not speaking for the board nor does he at SLAmeetings, he always keeps his eye on those things and clearly all the plans he has seen at the minimum provide continued income for the Roosevelt Field Fund and provide pass through park facilities (sidewalks, grass, park benches, etc.), which is an extension of the boardwalk. When he mentions to Fletcher Wright people that he cares about those things, as does Bremerton, they are very open to that in their design. As far as all the details of the Memorandum Of Agreement, in watching the Board members what they really want to do is get a commitment and get going. The SLA Board is still in its forming stage; however, there are two drivers moving their schedules: (1) the State Legislative sessions, which starts in January; (2) private sector marketing plan that will coalesce to provide the condominiums, stores, restaurants, etc. When that comes to pass, that is when the public sector must be prepared to support them. Phil Best, Kitsap County Commissioner, stated he wanted to lend his support to this project. He was proud to be selected as a member of the SLA Board of Directors and in the 25 years he has been involved in working in Kitsap County and as an attorney in Bremerton and having met with Mr. Bremer about that long ago and help create Bremerton tomorrow as a viable entity hoping to get things together and get Bremerton working as a unit, this is the first time he has seen everything coalesce into what he thinks can pull it off and make something doable. He was surprised with the comment about Bremerton building a City Hall as part of the project TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 14 of 23 since he was thinking it would be a good place for the County Courthouse. We, as a County are really supporting this to be a viable enterprise and Bremerton be revitalized, but as a County they expect the City to also stand up and be a leader on this project. The governmental entities are in it together with the private sector and he believes together it can be made to work. The County will help out in any way it can, but they want to make sure it is a partnership. Bonnie McDade, SLABoard member and Director of Diversification for the EDC, suggested that if in fact we do not succeed with a project that is going to be a real showcase and catalyst for a diversified economic base in Kitsap County and primarily Bremerton, we might as well write off much of our diversification efforts because we will never get there from here. She finds it interesting that a number of people accusing the City Council of not doing anything about economic development are still encouraging Council to not do anything. Therefore, she suggested Council take that courageous step and proceed with the project. The SLA has been put together to make that public/private partnership work, keeping the cohesive, cooperative effort that is absolutely necessary to make diversification work in Bremerton and Kitsap County. She too believes the time is right, the people involved are right, the project is right and she encouraged Council to put the $50,000 where the investment is the greatest, and she does consider it an investment in all of our future. John Thomas, Bremerton resident, stated he was not totally intelligent on this project. A comment was made earlier that the SLABoard of Directors is a diverse group of people, but he did not know everyone, but those he does know look like they are the political correct people. He did not see any "blue collar" worker on the SLA Board. It was stated the EDC and Chamber Of Commerce spent their money to see this project move forward. In his opinion, they didn't spend their money, rather it was taxpayers money through the City, County, State or Federal Government. Looking at the SLAminutes, he noted Council President Huff-Menees acted as President of the SLABoard, at least for one meeting, and to him that borders on a conflict of interest situation. Dick Haves, Director of Kitsap Transit and Transit representative on the SLA Board, stated this kind of synergy with a group of governmental agencies materially greatly expands the ability of all of them to succeed. This significantly increases the Transit System's chances of funding the kind of ferry and bus terminal that everyone has wanted for a decade or so. Certainly, with the kind of commitment and resources that Fletcher Wright brings, this is Bremerton's grand chance, in a decade, to pull off revitalization. Earlier speakers commented that this is another study and Fletcher TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 15 of 23 Wright is essentially another consultant. In his opinion that is almost a ludicrous injustice - Fletcher Wright is a major multi- national corporation with the resources to take on this kind of project and they have examples of such projects in the United States and other countries. His involvement since the development of the RFP for solicitation, he believes this is the chance of the decade that gets the public facilities that are needed, gets the private sector helping to get those less expensively than otherwise would be possible, and gets the private sector in a position to do a marvelous collection of things for downtown on the private side of the ledger that will being that downtown back. Mayor Lynn Horton stated she would provide answers to questioned raised as follows: (1) Comment was made that ferry service was a critical component of this project - if she made the statement that the passenger-only ferry had to be in place before this project could occur, she should probably backtrack and explain what they found when they looked at the feasibility of a hotel on the City's piece of waterfront property. That analysis said that passenger-only ferry service was needed in order to attract a hotel. This project can occur without passenger-only service, although that service will be an important part of the development and would help the entire development. Additionally, passenger-only service is a critical component for the City of Bremerton outside of this development. Bremerton is looking at hosting an additional 20,000 people and probably a large component of those will be living in the downtown core (from Smith Cove down to the waterfront), and passenger-only service will be a necessary element to service the greater community as well as this project. TAPE #1346 (2) The Roosevelt Field Replacement Fund - at this point we don't know what the "business deal" will be with Fletcher Wright, so we don't know how much money or what kind of project the City will be entering into with them. Council has reviewed the letter of intent goals and now Mr. Pollock is working on negotiating those goals with Fletcher Wright and he will come back to Council early January to discuss some of his recommendations for the kind of business deal the City wants to strike with Fletcher Wright. Therefore, when the City puts its piece of property up as part of this project, there will be a revenue stream or source of revenue that will go into the Roosevelt Field Replacement Fund. (3) The City's financial contribution to the SLA - In 1995 the City applied for a County Block Grant for this project and the City was awarded $82,000, which is the money the City will be using for this purpose. Some of that funding must go into the construction side, but some came be funneled into looking at environmental analysis and other things that comply with the grant. TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 16 of 23 (4) Positions on the SLABoard Of Directors - a question was raised relating to elected officials being seated on the board - the role on the SLA Board does not go with the job of Mayor or City President or Kitsap County Commissioner, they go with the person. If she is not in her position as Mayor a couple years from now, she will step down from the SLAExecutive Board, but may ask to stay on as an Advisory Counsel. She assumed other elected officials involved would do the same, but that is up to them. A question was raised at the Port of Bremerton meeting - since this is a Bremerton development why isn't the City leading the charge instead of the SLA? She believes it boils down to something fairly simple, i.e., the City of Bremerton's function includes Police on the streets, making sure fire fighter services are available, a good water system is in place, City parks are maintained, etc.. The City's job is so vast and varied that it would be difficult to provide the staffing and concentrated effort to see that this project happens. The sole focus of the SLA is to see that this development happens and that it works with rest of the downtown so that the downtown is redeveloped. (5) People have allude to the subject document as a "study" - several years ago when she was City Council President, she met with Vice President Of Development for Corner Stone and at that time she asked him if Bremerton was ready for redevelopment. His response was the first thing you need to do is figure out what your strategy is for the downtown. If you don't have that strategy no developer will come in because they don't think you know what you want. The process used to develop this project followed that advice. First of all, the Leland Analysis was conducted to develop a strategy for the downtown, what did we want and where did we want certain development entities to come. The analysis showed that the City's piece of property wasn't the most ideal for a hotel site, so therefore they looked at the greater area to see where a hotel would fit if one was desired, as well as other desired components,i.e., housing, retail, etc.. From that point, Tonykin Hoyne was engaged to look at the site in preparation for putting out a Request For Proposals - what did we want to see specifically on our site, what kind of public amenities did we want, what kind of components did we want included in our site, etc., so all of these things have been leading up to the Requests For Proposals and ultimately setting the stage for an entity like Fletcher Wright to come into the community and do what the private sector does and that is development. (6) A question was raised about rights being given up by jurisdictions as per the Memorandum Of Understanding - again, the letter of intent will be the business deal with Fletcher Wright and provide the parameters for what the City is giving, what is expected of Fletcher Wright and at that point, if the City chooses, TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 17 of 23 giving authority to the SLA, which will be articulated in that document. (7) Question - what makes this project different than others considered? She believes there are a lot of things that make this project different,i.e. we have done our homework this time having gone through the visioning session to determine what is desired in the downtown; for the first time all the players needed are "at the table"; we have a favorable economic picture with lower interest rates; and a quality development team. She emphasized the tremendous talent the various members of SLA bring to this project and what they propose in their development makes sense for the City of Bremerton. It also makes sense in terms of tourism and if you couple that with the Missouri, contrary to Mr. Mentor's opinion, she believes this area has just as good a chance to get the Missouri as any other community. At this point, it is up to Congressman Dicks to wheel the political behind the scenes maneuvering that she believes will ultimately permanently homeport the Missouri in Bremerton. People in Bremerton and Kitsap County want a reason to come to Bremerton. There isn't a community like Bremerton in Kitsap County and she believes the City is evolving into an entertainment center for the County, certainly we are a business center for the County even though the retail core may be in Silverdale. She stressed we are not reinventing something on the hopes that someone from out-of-the area will come and visit Bremerton, but there are also elements for the people of Bremerton to enjoy 365 days a year and not just from May through September. (7) Question - are there any guarantees that money won't be wasted? There are no guarantees in life, but we do have a lot of people with very good expertise working on this project. She has already talked with Dan Miller, the City's project Manager, and he will be working with John Koch, City Internal Auditor, to monitor expenditure of funds. The private sector of the project will secure private financing and it is up to them to convince a banking establishment that their project is financially feasible, that they have tenants secured and leases in place. (8) Question - will the citizens have a vote on this project? The majority of this project is a private sector development and as such that portions will not be held for citizens vote and she did not imagine, at this point in time, that anything the City is involved in will involve a citizens vote. S(9) Question - how many citizens on the SLA Board are residents of Bremerton? Mayor Horton estimates that one half or more are Bremerton residents. Mayor Horton asked Mary McClure to speak to the public involvement TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 18 of 23 issue that Mr. Knauss felt was left out of the document; and she asked Mr. Gunter to address Mr. McConnell's concerns relating to the Memorandum Of Understanding. Mary Mcclure stated two thirds of the SLA Board members are Bremerton citizens and all of them are either City citizens, downtown property owners, business owners or key executives in major downtown businesses. In relationship to the public involvement they are envisioning and planning an extensive process that has two directions: (1) information out so they have an informed dialogue with the community; (2) ways to encourage and allow people to give input. In terms of information out, they anticipate a series of brochures as well as working with the media, both print and broadcast, to make the elements of the project clear. In terms of the opportunities for getting input back, one of the issues they are currently struggling with is how to do this in a cost efficient manner. They are looking at asking each of the Council members to host their district meetings with information and create that as an opportunity for Council members and the SLA Board to talk directly with their constituents about the project. It is there hope to do that at least twice over the next several months in each area. They are also hoping to set up a questionnaire that can be handed out in many different forums where SLA Board members will meet with neighborhood groups, civic associations, organizations all over the City and County, and talk about the project and its progress. At that time, they will not only entertain questions, but also leave the questionnaire with those attending so they can fill it out. As they move further into the project and have clear understandings of the kinds of tenants and the nature of the project, they will begin to look at more specific ways to hold open houses and forums. In relationship to each of the public elements, the parking garage, multi-model terminal and marine expansion, she was sure they would be designing specific ways to present information on specific pieces of the project to the community and get their feedback. Bob Gunter stated the document is characterized as a Memorandum Of Understanding, but it is a contract. Initially, they started with the title of Memorandum Of Agreement and as the attorneys and various parties looked at it they determined that Memorandum Of Understanding is a more accurate title for this entry level commitment. There are some fixed parts to the document, such as payment of the money and the participating parties have all agreed. The less clear part is the commitment to negotiate and proceed in good faith. He stressed the "ands" in the document do make a difference, but the WHEREAS goes on to say that "...as maV be permitted under existing charters and laws;".. He emphasized probably the most important thing for Council to remember is that under the SCOPE of the Agreement paragraph 2 it states: "Contingent TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 19 of 23 on the negotiations of future agreements, the completion of various feasibility studies and successful Proiect financing ...... " He pointed out there are several additional steps that have to be in place before dirt is turned and parties are committed to do anything in particular. A question was raised about SLA's ability to receive, hold and approve transfer of facilities and properties...again, that sentence goes on to read: "consistent with applicable laws and pursuant to the terms of future agreements among the parties." The commitment here is to commit money, resources and the good faith of the City to put a deal together that pencils out. If it doesn't, then there is no further commitment, but if it does the public and this Council will have the ability to look at a much more detailed agreement that will spell out what will be done and how it will be done with the City's property. This agreement has a sentence that applies specifically to Bremerton under Section 6: "The above notwithstanding, the City in its sole discretion may commence or later terminate separate negotiations to convey its property identified in Exhibit A for its use in the Project." He stressed the fact that this agreement is more clear for the City than any of the other governmental entities in that they reserve their discretion and control over that negotiating process. Paragraph 11 was the Attorney's attempt to make it clear that no one is giving up anything as stated: "The approval of this Agreement or anV actions taken pursuant thereto by any governmental party is not intended nor should be construed to affect the status of said government party as an independent municipal entity or to limit or expand the powers and responsibilities of any governmental party as provided by law." They attempted to put constraints over what the scope of the commitment is to pay money and to cooperate, but if it looks feasible then this body will look at much more detailed agreements in the future. Mayor Horton stated Council has asked her to address an earlier comment that the City is negotiating to lease 30,000 sq. ft., of space in Sinclair Landing for a waterfront City Hall. She has had no discussions about leasing 30,000 sq. ft. City Hall. President Huff-Menees announced during the brief recess of the Council meeting, a call came in from a constituent with respect to the fact that the discussion was closed to Council and then there were some speakers after that point; and that the public did not then have the opportunity to respond to those speakers. she emphasized Council is within its right to do that; however, if there is anyone who would like to comment on the responses of the last speakers they may make comment at this time. Since no one wished to speak, she again closed the public discussion. Mr. Colvin stated he appreciates citizens asking questions. He #0702 TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 20 of 23 asked if he understood correctly that at this time the City was only obligating itself for $50,000? It concerned him that the City's Attorney was not present at this meeting. Mayor Hotton explained if Council approves the Memorandum Of Understanding, the City is agreeing to make a $50,000 contribution to the SLA, and the source of those funds will be a Block Grant allocation. And, it will commit the City to work cooperatively with the other entities involved in the agreement to work on moving this project forward. The City has no other liability in this process, we are not putting up our land or committing other funds. Mr. Overson noted Council received a lot of criticism and comments and he feels all the questions have been answered. The purpose of the subject agreement is basically to provide a cooperative approach to continuing implementation of the Sinclair Landing project. The scope of the agreement is contingent upon the negotiation of future agreements, so this is but a mini step in the process. He felt this step was relatively easy and anticipated future steps may get contentious. He is prepared to move forward on the project based on his past experience and the fact that in all of his years in this area, this is the best proposal he has ever seen. He emphasized that is not saying we might not get another one within the next 20 years if we wait, but there is no guarantee that will happen. Until he is presented a better proposal by either the critics or anyone else, he would support this project. We have a group that will keep a watch on the City to insure that the citizens' interests are preserved. He acknowledged the City is only one of 15 members owning property in the downtown and the City's portion is significant, but a relatively small portion. By comparison if you compare what the County and other governmental agencies have put into roads, infrastructure, fire hall, stoplights, etc., into Silverdale, this City is going to have to invest in downtown. M/S/C(Overson/Dawkins) to authorize the Mayor to sign the attached Memorandum of Understanding, on behalf of the City of Bremerton. Mr. Law pointed out no one commenting on this evening said they did not want the project. The proposal from Fletcher Wright looks very good and the best he has seen in many years. What we are looking at for this proposal is to fund the feasibility study. He has had a good 30-hours of phone calls from the public and they are not saying they don't want the downtown developed nor are they saying Fletcher Wright is not the right developer, their concern is the documentation that Council is asked to approve at this time. He keeps hearing it is a working document and that changes will be made. He preferred Council passing an alternative that would approve we will fund the $50,000, we are dedicated and committed to the project, but see the results of the feasibility study. The TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 21 of 23 feasibility study could end up saying the best thing for this program is to have the City issue the Bonds directly. He believes the community is dedicated to having the downtown waterfront developed, and the only concern is the path between the developer and City government. Therefore, if we say we will fund it as stated in Section 7 and give the attorneys an opportunity to come back to Council after the feasibility study, the City will have contributed $50,000 to the SLA so they could do their lobbying and other items as identified. But, the City would be waiting for the results of the feasibility study to give the right "path" to follow. Therefore, he will vote no on this proposal with the hope that another motion will follow to fund the program as he suggested, but to not sign the Memorandum Of Understanding. His greatest concern about the MOU was the approval of more than one government agency for the City of Bremerton to be able to make a change or to withdraw from the project. If that was not a valid point and a part of the document, he questioned why sign it? Mr. Farr stated acting on this issue brought him the most satisfaction as a City Council member and he has also lived in Bremerton a long time and seen study after study with none succeeding. He is excited to think that he will be part of the group that facilitates getting this project off the ground. He strongly urged Council to provide a unanimous show of support and not pick it apart at the last minutes. He believes the point presented by the Kitsap County Commissioners made sense to him...this is Bremerton's waterfront and Bremerton needs to take the lead. One concern raised by a citizens was "what can this project do for me" and he felt that was a valid point. In his opinion, this project will do a lot for all the citizens of Bremerton and the entire area. He firmly believes that a city's downtown is its source of pride, and pride in the City is something that Bremerton could use a little help and it benefits everyone. Bremerton is the last waterfront community in the region with a basically undeveloped waterfront. Mr. Thomas commented earlier that there wasn't any "blue collar" workers on the SLA Board of Directors. In response to that comment, he pointed out Beverly Kincaid, Secretary/Treasurer of Kitsap County Central Labor Council represents 30 Unions and three Labor Councils. He is not a subscriber to the conspiracy theory that a group of people would come together to deliberately try to do something to drag Bremerton down even further and he recognizes nearly all of the SLA Board Of Directors by name. He emphasized none of the SLA Board members are getting paid and most of them are very busy people and from what he understands, they are committed to donate a large amount of time to help Bremerton get this project going. Again, he urged unanimous support of this proposal as presented. Mr. Dawkins stated between serving on the Parks and Recreation TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 22 of 23 Commission and being an elected official for the City for almost 25 years, it seems like it has taken a long time to get to this point where discussions can be held in a positive light. He added his voice of support to finally move ahead and develop the waterfront. President Huff-Menees invited anyone in the audience to attend the SLA's Board meetings, which are open to the public. She will make sure a schedule of those meetings are posted in the City Council Office so that perhaps some of the issues that were raised during this hearing in terms of the make up of the Board and the work of the Board can be directly addressed. She would take exception to any comments made with respect to the make up of the SLA Board and we are tremendously fortunate to have those individuals. If time is taken to attend a Board meeting, one will find that there are no issues ducked, the tough questions are asked and thoroughly discussed until adequate solutions are reached and there is agreement. She also disagreed with the comment that the MOU is an inferior document - it is an excellent document. It is all in the eyes of the beholder and someone could say it is ambiguous and unanswered questions, but she finds it to be one of the most specific documents of this type that she has ever seen and because the law firm that is Counsel for SLA are leaders in the State in public/private partnership issues. There has been a tremendous amount of effort put into the details of this document and selection of the people involved. She disagreed in part with some of Mr. Law's statements, although she appreciated all of the questions asked during the hearing and the answers provided, but again, she encouraged the public to attend the SLA Board meetings to become better informed. Mr. Neville commented in response to the earlier comment that no "blue collar,, workers were represented on the SLA Board, he believes Bremerton,s best interest is being looked after and he truly feels there is no bluer collar than his. He also believes the homework has been done on this proposal and having spent all of his life in this community he has seen various studies conducted, including the "tent" idea, but this project is one that has gotten all the players at the table at one time and going in one direction - that is for the footprint of the development of downtown Bremerton. From this footprint, we can branch out and implement other plans and studies that have taken place in the City, such as the Campus Evergreen Plan and the development of the City out into the west hills area. The entire development of the City of Bremerton starts with this one footprint and we do have all the players coming to the table and that is exactly what the MOU is doing with one voice speaking in one way for the development of downtown Bremerton. As for the protection of the City, it is specifically written in the MOU: "the City in its sole discretion may commence or later terminate separate neqotiations to convey its TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 23 of 23 property identified in Exhibit A." The City is the only one that has that exclusive right protecting the City's property and everyone else is willing to put up their property in conjunction with everyone else. He is happy and pleased that the MOU is a working agreement where a step forward can be made into the future. He wholeheartedly supports this proposal. Mr. Montgomery related he moved into the City in 1990 and at that time he made a statement that within five years he believed the City of Bremerton would be turning around. What resulted was five years later he had the opportunity to hear Fletcher Wright make a presentation on this proposal. The group of people making that presentation where the most empowering that he had ever seen, which greatly impressed him. A few days ago, he attended another meeting where he was informed the MOU was riddled with holes, but after spending approximately seven hours studying the document, he has determined that was not so. He urged Council to move forward on this proposal and if the City does not go in that direction, you might as well say "last person out shut off the light". Mr. Colvin stated he did not pretend to know or understand everything he has read, but he does have confidence in the stellar group of people involved in the SLA. He will vote for this proposal because of the confidence he has in that group. He emphasized it is the citizens right to be concerned and to differ with the Council, if they feel Council is doing something wrong. Vote on Motion: In Favor: Montgomery, Dawkins, Colvin, Overson, Neville, Farr, Huff-Menees Motion carried Opposed: Winters, Law With no further business meeting adjourned at 7:52 P.M.. KATHLEEN L. Mc~y Clerk KLM/SH-M/me cc: Normal Distribution File/Vault