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HomeMy WebLinkAbout11/01/95COUNCIL APPROVED NOV 29 1995 TAPE #1331 CITY COUNCIL MEETING MINUTES UNAPPROVED DRAFT NOVEMBER 1, 1995 #0015 #0030 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, November 1, 1995, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Bob Winters, Morrie Dawkins, Carlos Montgomery, John Law, David Farr, Richard Neville. Council members Lon Overson and A1 Colvin were absent. Also present were City Attorney Ian Sievers and Acting City Clerk Rich Hanna. The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Reverend Randy Fulton of the Silverdale Baptist Church. CONSENT AGENDA A. Minutes - October 11, 1995 #AB95-240 M/S/C/U(Neville/Farr) 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(Dawkins/Montgomery) on November 1, 1995, the Council does approve for payment those vouchers included and further described as follows: 189190 through 189193, 189206 through 189313 in the amount of $330,235.15. President Huff-Menees made the following announcements: (1) Wished Councilman Colvin a speedy recovery. (2) City Council will begin their Budget Study Session on November 2, 1995, starting at 5:30 P.M., in the Council Conference Room. The following Budget Study Sessions are scheduled for November 7, 9, 14 and 16. COUNCIL MEMBER REPORTS Mr. Dawkins, Mr. Montuomerv and Mr. Law commented on A1 Colvin's absence due to illness and hoped he would be returning soon. Mr. Farr stated if the increase in "tick or treaters" is an indication of the health of a neighborhood, his is getting healthier. He hoped that the large turn out of kids is also an TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 2 of 16 indication that the citizens have more faith in the safety of our neighborhoods. Mr. Neville reminded everyone of Election Day on Tuesday, November 7. He urged voters to take time and read the Voter's Pamphlet and understand the issues on the ballot. MAYOR'S REPORT Mayor Lynn Hotton reported on Tuesday, October 31, she met with Captain Baugh, the new Shipyard Commander, and discussed several items that concern both the City and the shipyard. They discussed the housing for the 700 sailors off the U.S.S. Abraham Lincoln and how the City and PSNS could work more collaborative and help each other. She believes there are some opportunities coming up in the future where the City and community can help the Navy deal with some issues similar to the Abraham Lincoln. The decision they reached in housing the non-married sailors in local and Pierce County hotels and motels, was predicated on the fact that they knew the families of the crew members would be coming up one-two months after the sailors arrived. If all of the crew members were housed in Kitsap County, it would have made it very difficult for families to find adequate housing. Whether or not that is right or wrong, that was their decision. She believed they may have erred in communications and in the future she sees the City being able to help them in that regard. She was very impressed with CAPT Baugh and views him as someone very community minded. PSNS is his first shipyard command and he wishes to forge better relations with the community. They also talked about economic diversification both in the community and within the shipyard itself. One of the things the Navy is recognizing is that they do have a lot of overhead and space they potentially may not need in the future, so economic diversification may be something they are interested in exploring. They discussed a wide variety of topics and one thing they agreed to was to meet on a quarterly basis. She believes they both went away with a greater sense of each other needs and appreciation for each others' roles. The City and shipyard have been working successfully on the Callow Avenue Basin project, which affects the shipyard expansion area. Overall, she believes the City has been working well with the shipyard on the detail portions, now there needs to be more discussion in a more comprehensive overall fashion. PUBLIC RECOGNITION Tom Triggs brought before Council a problem he was having obtaining a business license from the City to open a recycling collection station. For the past 11 months he has been trying to obtain the proper permits and business license and as of May everything came to a standstill. He referenced three documents, which were handed TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 3 of 16 out to Council, (1) Application For Zoning Ordinance Text Amendment, (2) Land Use Table out of the Zoning Ordinance, which identifies the kinds of businesses allowed under certain zoning, (3) Land Use Plan out of the City's ordinance. He pointed out there are two elements in the world of recycling allowed in the City of Bremerton: (1) Recycling Center; (2) Collection Station. He emphasized here is the gross error - if you go back to the Land Use Table Collection Station is not included. His purpose before Council at this time was to ask that the error be rectified by adding Recycling Collection Station to the Land Use Map. Beverly Woods, Executive Director Bremerton Area Chamber Of Commerce, provided each Council member with a copy of a new magazine on Bremerton that was published by the Chamber. This magazine is mainly used in their Relocation Packets, which are handed out or mailed out to individuals looking to relocate to Bremerton, and to businesses that want to move to the Bremerton area. This magazine was funded by the Chamber membership through purchased advertising. Almost 2,000 copies of the magazine were distributed to crew members of the U.S.S. Carl Vinson, who will be relocating to Bremerton as the ship's homeport in the latter part of 1996 or early 1997. While that may seem far off, in actuality many of the families are being relocated to Bremerton in December of this year. Members representing the Chamber of Commerce, Bremerton School District, Real Estate and Property Management, Ministries, PSNS/Housing/Security, traveled to Alameda, California, where they set up a trade show in a hanger and for four days held debriefings from 2:00 P.M. - 9:-00 P.M. During that time, they were able to reach every all 3,000 military personnel and their families. While they were in Alameda, they also went aboard the U.S.S. Abraham Lincoln, which will soon be homeported for a year at PSNS while undergoing an overhaul. They were able to provide vital information to the Lincoln's crew that would help them in their relocation as well. The Lincoln's Chaplain's Office was somewhat surprised to learn that most of the people outside Puget Sound Naval Shipyard had not been contacted about their temporary relocation; and the fact there had been no communication with the Bremerton Area Chamber of Commerce prior to their contacting the Abraham Lincoln. She wanted Council to be informed about the effort the Chamber made to assist them and "smooth out the ruffles" caused by the relocation of 700 of those crew members. She emphasized Bremerton will see an increase in rental properties being filled by Navy personnel and their families by both personnel off the U.S.S. Vinson and U.S.S. Abraham Lincoln. Willy Marquina, owner of Los Andes Imports & Exports, gave an update on the Downtown Business Association's holiday event schedule: December 2 - second annual Christmas Wish List Treasure TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 4 of 16 Hunt; December 16 - second annual Musical Festival; Kitsap Historical Society will be roasting chestnuts over open fires, which will be a fund raising activity for their museum; Christmas Tree decorating and lighting. Gordv Byrd announced the Neighborhood Christian Center is putting on a free Thanksgiving Dinner Wednesday, November 22, and it is open to the general public. Don Larson, President of Washington Scuba Alliance, reported he received a call from a reporter in Bellevue, who wanted to do a story for the National Enquirer about the 800 ft. container ship that hit a 34 ft. pleasure craft. He and two friends were the first to be on the scene of that accident, which they photographed. He sent off copies of the photos to the reporter and expects to see them published in the National Enquirer. He complimented The Sun for their news reporting on that accident as well as the article by Seaberry Blare on Wildlife On The Olympic Coast National Marine Sanctuary/October 15. He referenced the December issue of Rodell Scuba Diving Magazine has a collector edition: "Saving The Water Plant", which lists the world's best marine parks. In that same edition there is an article on the Olympic Coast National Marine Sanctuary. He thanked Mayor Lynn Horton for contacting Mayor Roscow of Sidney, B.C., and obtaining a packet of information regarding their underwater park. He talked about the kinds of tourist dollars generated by marine parks in various locations and his hope that one day Bremerton would have an underwater park. Carol Atkinson, Bremerton Main Street Association, reported she has been working with Steve McGraw of the Catholic Archdiocese Services to find tenants for the retail space available in the former Elks' building. In reference to the concern over the U.S.S. Abraham Lincoln and part of its crew being bused to Tacoma and the Fife area for housing, Main Street, Earl Smith of the EDC and several apartment owners met with the Navy today and the result of that meeting will be reported by Alex Roos. She extended a special "thank you" to Earl Smith and Bonnie McDade of the EDC for doing a wonderful job on the U.S.S. Missouri presentation. Plans for the Christmas holiday includes the arrival of Santa on December 1, 5:30 P.M., at the Christmas Tree in front of City Hall on 4th Street. At that time, the christmas lights along fourth street will be lit and children can get their pictures taken with Santa, which are free. Alex Roos, Chairman of a sub-committee of the Puget Rental Owners Association (PROA), reported Earl Smith and representatives from PROA in cooperation with Congressman Norm Dicks and RickWhite held a meeting this morning with the Navy representatives concerning the TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 5 of 16 700 bachelors being housed in Pierce County. He was not bring "good news" to the Mayor and City Council as a result of that meeting. The result of that meeting is that 7 million dollars will be going to Pierce County and it is going their because it was a done deal prior to their entering the meeting today. That fact disturbs PROA and it should disturb every resident of the City of Bremerton. Communication was lacking, the survey conducted by a local real estate group, they feel was lacking, as well as proper statistics as far as vacancy facts. The Navy's intent is to "cluster" crew members together within their class to help them remain a cognizant group of young sailors with someone older and more experienced. There will be 50 vans traveling back and forth between Bremerton and Tacoma transporting the 700 sailors. Because contracts had already been let by the time the meeting was held this morning, there was not much they could do but look down the road to the future. Several of the PROA representatives stated that had they been contacted earlier they could have blocked off 20 rooms. They are still trying to find out who the survey team surveyed. He believes the door has been opened for better communication at an earlier stage so that the City will not lose tax money, will be a participant in the needs of the Navy and work together so everyone has advance notice and preparation time. John Thomas read into the record part of a newspaper article printed in The Sun on July 8th, 1994, which stated Norm Dicks had a meeting with the Port Orchard Chamber Of Commerce and repeating a theme he gave in every speech during the past year - "Kitsap County needs to work harder to improve its rental housing stock if it is going to convince the Navy it should continue to keep its bases open here." Mr. Thomas stated having spent 21 years in the Navy, Bremerton is the only community he lived in where he had to pay his own garbage when he rented a house. Bremerton, just like any other military community, rents are not predicated on tax rate increase, but rather BAQ and VHA increases. Very rarely do local rental owners put money back into their facilities and he felt before they keep crying they should live in what they are trying to rent out. Elizabeth Bue11 stated she puts money into her rental properties and tries to keep them in good shape. It concerned her that the City is not doing anything about getting rid of the Scotch broom at the north end of the Warren Avenue Bridge. She hoped the City was working on the problem. Dave Richard, member of the Black Entrepreneur Association, stated they are working to reopen the Roxy Theater. They feel their project will make a significant impact on the community at large. His purpose before Council, at this time, is to officially submit , TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 6 of 16 #1315 a request to be considered for funding out the Hotel/Motel Tax revenues in the City's 1996 budget. He submitted a letter outlining their request. 7A - REPLACEMENT OF NCR TOWER COMPUTERS, #AB95-241 As discussed at the recent Council Study Session, it is intended to include a City-wide computer upgrade as part of the 1996 budget proposal. Part of that upgrade is to replace the two NCR Tower computers. We would like to begin the RFP process for this replacement as soon as possible because the maintenance costs saved by the replacement will be a significant source of funding the remainder of the upgrade. The age and condition of the Towers is also a cause of some urgency. Bill Eley, Information Services Manager, stated for clarification that Council will have the role of accepting the proposal that best suits the City's needs, if approval is given go out to bid. Public comment - none. Mr. Winters asked when did the City last purchase a central computing system? Mr. Eley stated two towers are being replaced, one was delivered in 1987 and the other in 1988. Mr. Winters asked if the City central computing system had every broken down? Mr. Eley stated yes, the larger of the two machines has an obscure fault in it that causes it to occasionally breakdown. The engineers that maintain the system have fixed it by trial and error and are not really sure what is causing the problem or what they are actually doing to get it running again. There have been two occasions where the machine has been down for several days at a time. Mr. Winters stated since that equipment was purchased in 1987/1988, how many technological updates have occurred in order to make this system more applicable to our needs? Mr. EleV stated they have increased the disc capacity on the system from originally 1 gigabit. M/S/C/U(Montgomery/Dawkins) to allow commencement of an RFP process for replacement of the NCR Tower Computers. 7B - ROOSEVELT CAPITAL FUND EXPENDITURE AUTHORIZATION, #AB95-242 Based on the requirements of paragraph 3.23,030 of the BMC, Roosevelt Capital Fund Assets Fund money may be expended only be authorization of the City Council after consultation with the Parks & Recreation Commission. During the Study Session held on August 7, 1995, the Commission recommended issuing bonds for $764,000 for Phase I projects defined in Exhibit (1). The administration's recommendation relative to the expenditure of these funds is provided as Exhibit (2), and proposes a "pay as you go" approach TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 7 of 16 calling for the spending of $250,000 in 1996. Exhibit (3) provides summary revenue/expenditure information of the Roosevelt Fund. Council direction is required relative to the expenditure of these funds. Jim Spencer, Director Parks and Recreation, stated the issue before Council is to try and get some resolution regarding how to spend Roosevelt Field replacement funds. Unfortunately, in trying to deal with this issue there were basically two groups, the Parks and Recreation Commission and City Administration, and efforts to get those two groups to agree was unsuccessful. In analyzing what went wrong from his prospective, it turned out the major issue is the funding approach used relative to target the projects identified. The good news is both groups agreed to the projects that need to be pursued, but the bad news is they could not figure out a way to fund them to make them happen. What happened as a result was the Parks Commission took the position they were anxious to get started on the projects and that would require the City to provide some bonding to finance those projects, which are identified in Exhibit (1), at a cost of $764,000. The Administration's position was one that they were leery, based on what is happening on the waterfront and the Sinclair Landing project and the potential impact of revenue to that revenue stream that is provided by the parking lot, they wanted to use the "pay as you go approach". Obviously the "pay as you go approach" undermines the ability to do all the projects listed in a timely fashion. When comparing Exhibit (1) and Exhibit #2. The obviously two that will fall off the list are the Manette and Warren projects where those will not be accomplished in the 1996 time frame due to lack of funds. Mr. Spencer pointed out due to the difference of opinion between the Parks Commission and the Administration, it puts the Council in somewhat of an awkward position in determining which proposal to accept. The recommendation being presented to Council is proposing going with the Administration's approach, which is "pay as you go", which is identified on Exhibit #2 and the summary and expenditure summary associated with that proposal on Exhibit #3. Meriwyn Tinsley, Bremerton Parks and Recreation Commission, stated she would be speaking on behalf of the Parks Commission's recommendations, and why they would like Council to consider their proposal. She stated that when the Roosevelt Field property exchange took place, Council asked the Parks Commission to bring a recommendation to them for the replacement of fields. They have been working on this for the last three and a half years. In order for them to complete that task, they were very careful to operate within the guidelines of the ordinance. The four key guidelines focused on were 1) that the replacement of the field should be in TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 8 of 16 the core of the City; 2) that the replacement should focus on youth play; 3) that the Pendergast Sports Complex would not replace lost fields; and 4) that the funds to purchase and upgrade the youth fields, would come from the revenue stream generated from the combined income of the Bremerton Lumber and Salvation Army sites. During this three and a half years, the Parks Commission has had a process that has involved a lengthy review of the community, of properties, of school district properties, and Bremerton Parks properties. There have been three public hearings, and the proposal has been revised from a $1 million project down to the $764,000 that is being submitted this evening. They have met with the Mayor on two separate occasions where revisions were made, and they have asked for an Ad-Hoc meeting with the City Council and the Parks Commission, where input was also taken. The goal was to bring one proposal this evening, unfortunately, they were not able to do it. As Park Commissioners, they felt they could not compromise the charge that was given to them, which was replacement of the field lost by the sale of Roosevelt Field. Their proposal this evening suggests that if the $75,000 revenue stream is guaranteed to this project, as they were led to believe, then there is no reason not to move forward on the replacement of these fields right now. The ordinance was put together with the property exchange in 1991, and we are now almost to the end of 1995, and still nothing has been done to replace those fields. She feels this needs to be taken care of right now, and not delayed further over a period of time. As Mr. Spencer mentioned, the Mayor's proposal and theirs do agree on the property. There is no difference of opinion on that. The major difference of the two proposals looks at funding Evergreen Park development first, before the other fields are put into place. The reason the Parks Commission has a counter proposal to that, is because it will not be until Phase III of the Evergreen Park expansion that there will be any use fields at Evergreen, and that would be in the years 1998 and 1999, which they believe is too long in the future. They ask Council to consider their proposal to do something now. The Legion Field has already been started with the $44,000 for the hard ball field, but they have not been able to do anything else to existing fields. Their recommendation is for Council to consider the funding of these five proposals for the $764,000 using the bonds. They stated the revenue being generated by the parking only considers the money being generated from the Bremerton Lumber site, but reminded Council that the City also purchased the Salvation Army site, which would increase that revenue. Michael Bond, Manette Resident, emphasized Meriwyn's comments regarding the process they followed to arrive at the proposal they are presenting tonight. He said this proposal also includes recommendations made previously by Council, and feels it is TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 9 of 16 important for everyone to understand this. He wanted to add that the recommendations being presented tonight were also voted on unanimously by all members of the Parks & Recreation Commission. Regarding the revenue stream, he would like clarification as to the development of the downtown waterfront and loss of the revenue stream. The Commission heard a presentation by the Sinclair Landing Group, Fletcher Wright, on September 26, 1995. During that presentation, the development team talked about a $75,000 revenue stream over a 20-year period. The Commission assumed at that point, that their concerns about the revenue stream were no more. He wanted to find out if this was the case. Based on that, the Commission voted unanimously to support the project. He also questioned the consultation clause in the Roosevelt Field Capital Asset Fund. It is their understanding that Council will be spending money and will commit these funds after consultation with the Parks & Recreation Commission as outlined in the ordinance. They know that the Mayor has a different position, and would like clarification on this if possible. De1 Knauss, Bremerton resident, stated it has been a long time since promises were made, and kids are still waiting. He said it seems like anytime the middle-aged adults want something, the City can go out and get the bonds to take care of it (i.e. Gold Mountain Golf Course and the Pendergast Sports Complex, neither of which are for the kids) but the City doesn't seem to be able to pass some bonds to take care of the kids who live in the neighborhoods. The only part of Phase I he disagrees with is the Haddon School Site and the neighborhood park. He stated that the taxpayers paid for that site once already, and it galls him that taxpayers are being asked to pay for it again, and feels it is questionable whether that site can even be sold since it has been on the market for a long time and has not moved. He does not want to pay for property a second time. He urged the Council to go ahead with the bonds, stating it has been too long since the promise was made. Cecil McConnell, Bremerton resident, stated he hoped Council would pass Exhibit 2, the Administration recommendation with two changes. One, go ahead and pass bonds to pay for it; and really give Haddon field a close look before arriving at any decision to purchase it. The objection he has to Exhibit 1, are the planned expenditures for Marion School, Kitsap Lake Elementary, and Bremerton Junior High, which all may be good projects, but feels it is putting part of Parks & Recreation funds into something the Parks Department will not be able to control, but rather be controlled by the schools. He urged the Council to accept the Administration's recommendation with the exception of instead of pay as you go, go ahead and float the bonds to pay for it and get it done. TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 10 of 16 Mayor Horton wanted to address some of the comments made on this issue. She stated that if the City were three, four, or five years into the future, and we knew that the project along the waterfront was completed, and we had an idea of how the revenues were tracking, she would agree with bonding. However, because we are at the current time frame, the development is not solidified. The final costs are not known, the City does not know what their obligation will be, nor do we know for sure what kind of revenue stream we will secure for the Roosevelt Field replacement. Because of those things, she believes it would be very "fool hardy" to bond against an unknown future. She also believes the City would have trouble bonding against something that is not yet in place today. The other issue is yes, the City could bond, but generally when you bond something, you can add about 100% in finance charges. Rather than have another $750,000 go into our Parks system, $750,000 will be going into a bank and a bond holder's pocket. One of the things talked about was putting in some money from real estate excise tax money into the Haddon School site for development, and thinks that in the next couple of years, we can have a field replacement there, and additionally there is money in her proposed budget for Phase I at Evergreen Park, but she is not sure how far that money will stretch. They had hoped to get a grant, but the City did not get it. In Phase I they were looking at a volleyball court, some basketball amenities, and some playground equipment. Between those two items, she believes the City is making some progress in an attempt to replace recreational opportunities for youth as close to the Roosevelt Field area as possible. There are some environmental issues around the Haddon School site, and before the City moves to acquire the property, they will make a very thorough investigation of what needs to be done. A preliminary assessment was done, and it is her hope that the City can acquire the property and develop it for the amount of money that is listed. She believes that by following the Administrative recommendation, some quality replacement can take place, maybe not in the time frame everyone would like, but until the waterfront development is more secure, she would feel very uncomfortable about bonding. If the revenue stream didn't come, then the General Fund would have to pick it up. She guaranteed that it would be a hit the General Fund could not take. Regarding the comments about paying a second time for the Haddon School site as mentioned earlier, you can compare it to the situation when the City traded the property with Olympic College for Roosevelt Field, a similar circumstance would be somebody saying, "Olympic College needs this field, therefore, I don't want to have to be taxed twice, you should give Roosevelt Field to Olympic College". She doesn't feel that the City can afford to give its assets away, even if it is to another governmental jurisdiction, and suspects the school can't afford to give their assets to the City either. She understands the sentiment there, TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 11 of 16 but also knows what the City's revenue picture is like, and all of our properties are valuable to us. John Thomas, Bremerton resident, stated that the City can't pass a bond to pay for a park, but could pass a bond to pay for a Public Works Center that the voters had turned down. He doesn't understand that. Regarding the Haddon School site, he feels it is important to have a clause that if hazardous materials are found, the school district pays for them, not the City. He reminded everyone when the City faced this situation at Crown Hill School where hazardous materials were found. He did not attend schools in this area, but his wife did, and has many memories of attending ball games at the old Roosevelt Field. They would like the opportunity for their daughter to have the similar experience. Mr. Novills asked Mr. Hanna for a run-down on the bonding process, especially pertaining to the request of the Parks Commission to fund through bonds, and the revenue source that is needed to do that. Rioh Hanna, City Treasurer, stated that if the City was to undertake a bond issue for this type of project, he is relatively confident the City would not be able to sell those bonds as investment quality bonds, pledging solely the revenue stream from our parking concession or whatever future use is made of the old Bremerton Lumber site. It would require a pledge of the full faith and credit of the City in order to be able to sell the bonds as investment quality paper. The City would have to sell them as limited tax general obligation bonds, where the City would pledge to the holders of those bonds, that if the stream of revenue from the Bremerton Lumber site is insufficient to meet debt service requirements, the City will use its General Fund tax revenues to make sure that those bonds are repaid. He believes that is the only way the City would be able to issue bonds for this kind of project. Mr. Novills commented it all comes down to there is no guaranteed money to back the bonds if we redevelop downtown Bremerton. Mr. Hanna stated in terms of the bond holders, yes there would be, because they would consider any and all revenues of the General Fund of the City of Bremerton. To the City of Bremerton, there would not be. If the parking income stream was interrupted for whatever reason, then the City's General Fund would need to step in and make up for whatever shortfall was created. Mr. Novills wanted to comment on the statement made earlier about when the adults want something they get it, and referred to the Pendergast Sports Complex. He wanted to remind everyone that project took nine years in the making. Also, the soccer fields are being used by the youth. He served on the Parks Commission when the City went through this Roosevelt Field exchange, and remembered that it was not an easy process. He understands the frustration TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 12 of 16 and hard work the Park Commissioners have put into this. It has been a long process, but it seems that every government process is a long one. There are no short, quick fixes. His concern his over the money issues, and the guarantee of the money. He agrees with the Parks Commission that more open space is needed in the downtown core area, but also sees the expansion of Evergreen Park as open space, not just youth fields. There are many things that are needed such as more fields and more gyms. However, there will never be enough money to get everything that is needed. Also, thought has to be given to the maintenance of any fields that are acquired. It would throw the Parks Department in a turmoil if they were not able to expand their capital, which would not allow them to provide the proper maintenance to the fields. He supports the Administration's proposal for these reasons. Mr. Fare asked Mr. Hanna to address the comments made by the public regarding the City being able to float bonds for the Public Works facility. Mr. Hanna stated it is true that a measure was placed on the ballot where voters were asked to increase property taxes to provide debt service for the City to issue unlimited tax General Obligation bonds, which the voters turned down. The decision was then made to issue an unlimited General Obligation bonds paid from the City's General Tax Revenues, rather than an excess property tax levy. That is how the Public Works facility was funded. General Fund revenues were pledged for the redemption of the General Obligation bonds. Mr. Fare asked if there was a limit on the General Obligation bonds? Mr. Hanna stated yes. One is imposed by the Legislature which limits the City to incurring non-voted General Obligation debt to an amount not greater than 1-1/2% of our total assessed valuation; and two, lenders have more reservations in granting loans to those already highly indebted. The City currently has an "A" rating on both Revenue and General Obligation bond. He believes the City can issue some additional General Obligation bonds and still preserve that rating, however, he does not know the exact amount. Mayor Herton stated that at the time the initiative was put on the ballot for the Public Works complex, it was voted down. For those of you who have been to Park Avenue and the old Street Department, realized that the current facilities were a disgrace, and there was no proper protection for the several hundred thousand dollars worth of equipment out in the elements, which is not a good investment to allow that deterioration. Even though the citizens did not want to "reach into their pockets" to pay for a new facility, the City had an obligation to take care of that equipment. Additionally, the City had always looked at expanding Evergreen Park, which it will now do with that adjoining, now vacant, property. TAPE #1331 City Council Reg. Mtg. Minutes November 1, 1995 Page 13 of 16 Mr. Farr commented with regard to the Haddon School site, that although some environmental concerns surfaced when a developer wanted to put a lot of houses in, which means 24-hour occupancy, it is quite different to be talking about a playfield, where very little money would be needed for improvements. Also, the Haddon School site is in the District 6 area, and right now, there is no available open space area for the kids to play. Another concern, is the lack of available land for development, and here is almost 4 acres at the Haddon School site. Mr. Law stated there is no way the City could have a Revenue bond with a reasonable interest rate, and if the City used a General Obligation bond, the closer we get to the ceiling, the higher the rate is going to be on that also. Even if the City were to "squeak by" on this particular bond and get a lower rate, the next bond we might have no choice on borrowing, would be higher. He doesn't feel enough information is available yet on the downtown development, so there is no idea at this point how any contracts will be put in place, and whether the City is developing a revenue source on a yearly basis, or some "lump-sum" basis. He does not feel that now is the time to make any commitments along those lines. The Council will be reviewing the budget in the next couple of weeks, and the funds for the development of the Haddon School area will have to come out of the City 901 Fund, and Council hasn't yet had an explanation how that will be handled. He does not feel that any more commitment, other than for Phase I, should be made at this time. He recognizes the time put in by the Parks Commission and their frustration, and feels that Council intends to meet the same objectives as they have, the difference is in how those objectives will be reached. Council must be fiscally responsible, and it is not just that easy to come up with all the money needed. Mr. Bond stated that although the bond issue is the main difference in the two proposals, there is also a priority difference. The main priority with the Administration proposal is the development of Evergreen Park, whereas the main priority with the Parks Commission proposal is the priority of the development of the playfields at Haddon, Warren, and Manette. He feels Council can take the position of not using the bond for funding, but still work with the Parks Commission proposal. Regarding comments made by Mr. Neville about the Parks Department possibly not having the capital to maintain additional fields, the Parks Department has stated that the work done to Warren and Manette would actually decrease the amount of time the Department would have to spend in maintaining those particular parks. Mr. Law believes that what Mr. Bonds is saying, is that Evergreen Park should not be that high on the priority list, however, from TAPE #1332 City Council Reg. Mtg. Minutes November 1, 1995 14 of 16 TAPE #1332 #0055 what he understands, Evergreen Park has some time frames that the City has no flexibility on, whereas the others, hopefully will. Mr. Winters believes that the Mayor, staff, and administration are really trying to find a way to make both the Parks Commission and City Council happy, while at the same time, trying to please the City Treasurer. However, the reality of the bond market and the cash flow that needs to be created in order to bond a park issue like this. He agrees with Mr. Law, that it takes money to do these things, and the City should not commit itself to a situation like this, with a non-realistic commitment yet from the Sinclair Landing issue. If that changes, then he hopes the Parks Commission comes back to Council, and the move can then be made more rapidly. He feels it would be foolish to make this commitment at this time, and therefore supports the Administration's proposal. M/S/C/U(Montgomery/Winters) to approve the expenditure of Roosevelt Capital Assets for the projects shown on Exhibit (2), utilizing the "pay as you go" approach, based on a possible interrupted revenue stream as a result of the Sinclair Landing Development. 8~ - PUBLIC HEI~RING ON REVENUE SOURCES FOR 1996 BUDGET, #AB95-243 The legislative body is required by State law to hold a Public Hearing on revenue sources for the 1996 budget, including consideration of possible increases in property tax revenues. Mr. Hanna stated this is a new requirement, and is part of the session laws, coming from the last session of the State Legislature. In his opinion, the requirement for a Public Hearing on the Revenue Sources is a little out of sync with the rest of the City's budget calendar. The Mayor's preliminary budget was made available to the public and provided to Council just yesterday, as required by statute. There will be a public hearing on all of the elements of the Mayor's preliminary budget two weeks from tonight. For unknown reasons to him, the Legislature has made it a requirement that a Public Hearing be held on the Revenue side of the 1996 Budget prior to the first reading of the Property Tax Ordinance, which is the final item on the agenda tonight. There are no tax increases proposed in the Mayor's budget. In terms of property tax, the Mayor's budget does include the assumption that the City will levy property taxes to what is commonly known as the 106 Limit, which is State Law, and limits the growth in property tax revenue to the City to a maximum of 6%, not including annexations and new construction. Continuing a policy that was implemented one year ago, the City will decrease by 1% the tax rate on the solid waste utility. Public comment - none. TAPE #1332 City Council Reg. Mtg. Minutes November 1, 1995 15 of 16 9A - ORDINANCE (FIRST READING) LEVYING PROPERTY TAXES FOR COLLECTION IN 1996, #AB95-244 The City's property taxes are levied on an annual basis through passage of an ordinance. The proposed ordinance will enact a general property tax levyat the 106% limit, and special levies for Emergency Medical Services and Bond Redemption at rates previously authorized by the voters. Mr. Hanna continued to state that the Mayor's budget does propose levying up to the 106% limit, which is more fully described in the memo provided to Council. He pointed out the page in the Agenda Bill which shows the percentage changes in the City's assessed valuation this year versus a year ago, as well as the tax rates and tax revenues. Because the City is proposing to levy taxes up to the 106% limit, the tax revenue to the City will increase by 6%. He pointed out that the City's Assessed Valuation has increased by just over 3%, means that the tax rate will increase from 1995 to 1996. The City's tax rate this year is $3.25 per $1,000 of Assessed Valuation, and in 1996 it will be $3.33 per $1,000 of Assessed Valuation. That is virtually at the statutory ceiling on the levy rate, which the City is permitted to levy. Future increases in property taxes will be limited to the rate of change in the Assessed Valuation of the City. Elizabeth Bus11 thought 100% was the highest figure, and wondered how the figure 106% was arrived at? Mr. Hanna stated that what he was making reference to was the State Statute which limits the authority of the City to levy property taxes. The limitation is that the tax revenue of the City, in one year over the next does not increase by a rate greater than 6%. This Legislation was enacted a number of years ago when property values were escalating very rapidly. It is a property tax control measure. That is what the 106% issue is all about. Mrs. Bus11 wanted to clarify that this did not mean that property owners were going to be taxed at 106%? Mr. Hanna stated no, that the property tax revenue to the City of Bremerton in 1996 will be 106% of the property tax revenue in the current year. Mr. Neville believed that a number of years ago, City Council did not enact the 106 Limit, and reduced it down to 103%, which produced a lot of havoc in the City. Mr. Hanna stated he believed that was in 1985 or 1986, and the City did choose to increase property taxes by only 3% rather than the 6%. Because each successive year, taxes are limited to a growth rate which is a function of the year before, that one time action has affected following years. However, the Legislature granted cities the authority to "catch up" with the affects of prior actions such as that, and the City did "catch up" that 3% in about 1989 or 1990. TAPE #1332 City Council Reg. Mtg. Minutes November 1, 1995 16 of 16 #0294 There was a period of four or five years where the City was 3% "behind", but that was made up in a subsequent year. Mr. Neville wanted to clarify however, that it took a number of years. Mr. Hanna stated yes, and the way the law is structured, a change of that nature in one year, carries forward from year to year. M/S/C/U(Montgomery/Dawkins) to approve Ordinance on first reading, levying Municipal Taxes against all the taxable property within the City limits of Bremerton for the year 1995, and approving the assessment roll made by the Assessor of Kitsap County, therefore to be collected in the year 1996. With no further business meeting adjourned at 7:13 P.M. L. McC~S 'KE~Clerk City of Bre~ KLM/SH-M/me and ls cc: Normal Distribution File/Vault President