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HomeMy WebLinkAbout08/16/95TAPE #1307 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES COUNCIL APPRO D SEP 13 1995 AUGUST 16, 1995 #0018 #0029 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, August 16, 1995, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Bob Winters, A1 Colvin, Morrie Dawkins, John Law, Richard Neville, and Lon Overson. Council members David Farr and Carlos Montgomerywere absent. Also present were City Attorney Ian Sievers and City Clerk Kathy McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Pastor Jim Patten of Summit Avenue Presbyterian Church. Kathleen McCluskev, City Clerk, announced Agenda Items 7D and 7F were pulled for one week. CONSENT AGENUA A. Minutes of Meeting - August 2, 1995 #AB95-170 M/S/C/U(Neville/Overson) to approve Consent Agenda. 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 August 16, 1995, the Council does approve for payment those vouchers included and further described as follows: 187112 through 187113, 187116 through 187117, 187119, and 187148 through 187340 in the amount of $637,293.40. President Huff-Menees make the following announcements: (1) There is a Declaration Sheet for any person who is here to testify at either Public Hearing at tonight's Council meeting; (1) City Council Study Session, Monday, August 21, 1995, 5:30 PM, in the City Council Conference Room. Topics to be discussed will be Public Works & Utilities issues as listed on the public notice; (2) City Council Executive Session, Wednesday, August 23, 1995, 5:00 - 5:20 PM, in the City Council Conference Room. Topic to be discussed is "Review of Personnel Performance"; and (3) City Council Study Session, Wednesday, August 23, 1995, TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 2 of 30 immediately following the City Council meeting in the Council Chambers. Topic to be discussed is the "Gorst - Bremerton Connector Project". COUNCIL MEMBER REPORT8 Mr. Winters enjoyed being the "MC" for "Kids Day" on the boardwalk last Friday. He thanked all the volunteers who also helped, and the parents and grandparent who brought their kids down to enjoy the festivities. He had a special "thank you" for Terrie O'Neill. He announced the next Kitsap Lake Neighborhood Association meeting will be Thursday, August 24, 1995, at 6:30 PM, in the Cascade Gas Building on Kitsap Way. If there are any further questions, please contact Jack Lefcoski at 377-0963. Mr. Colvin stressed the need for assigned Council parking. He has periodically urged citizens to bring their concerns to City Council, and reminded citizens they are encouraged and welcomed to do that. He wished Merilynn Erhart, Council Legislative Assistant, a "Happy Birthday". Mr. Law announced the 2nd Annual Manette "Summer Fest Street Fair" will be held Saturday, August 19, with the shortest parade in the world starting at 11:00 A.M. at llth and Scott and ending on Harkin Street. This event will include childrens games (after the parade), arts and crafts b6oths and someone may even spot "Elvis". The Grand Marshall will be DeeDee Rainbow. Mr. Overson announced more "yellow" footsteps will be appearing downtown to direct visitors to active businesses. Mrs. Huff-Menees congratulated City departments and staff members for another very successful Kids Day on the boardwalk. She was pleased this event was well attended by parents, kids and grandparents. She extended a special "thank you" to Kitsap Physician Service Health Plan for their sponsoring the kickoff tournament weekend event for the opening of Pendergast Regional Park. Not only did they sponsor athletic events, but they also donated $3,345.00 to the Andy Pendergast Construction Fund, which was made possible because all of the umpires donated their time and the Ace Paving Women's team donated their entire tournament labor rebate, which was the largest rebate of any team. KPS were pleased to report they sold all of their "jumbo" hot dogs during the tournament weekend. MAYOR'S REPORT Mayor Lynn Hotton also extended her "thanks" to Kitsap Physician Service, Ace Paving Women's Team and the Umpires for donating their revenues from the Pendergast Regional Park opening tournament. She thanked her staff and all the other participants at Kids Day on the TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 3 of 30 boardwalk. It pleased her to see this event growing and offers an excellent opportunity to educate youth about what is available within our community and what governments do for the public. Mayor Horton read the following Proclamation: August 20, 1995, as Sibling Day. Carl Glaser accepted the proclamation and noted this is the third year proclaiming Sibling Day, and hopefully special remembrances, such as a telephone call or card, will be given to brothers and sisters on that day. Mayor Horton introduced the Kitsap County Fair & Rodeo Court: Queen Jodie Lusk, Princess Sandy Farver, and Junior princess Erika Reitan. Each Princess talked about Fair events starting on Wednesday, August 23, and admission costs. PUBLIC RECOGNITION Mary Sump presented the City Council signed petitions in support of the City purchasing the old Haddon School site for development of a park. As of August 14, they had gathered 440 signatures that accounted for 691 children, with the majority of the signers from District #6 and surrounding area of the Haddon site. She pointed out there is not a single park along the north side from Highway #3 down Kitsap Way to llth Street and then on down to Warren Avenue. Larry Green stated he was appointed by NAACP President Barbara Payton to handle matters dealing with labor and industry and he was at the City Council meeting in that capacity. He referenced the City's Employment Application fee that is required for applying for a job with the City. He quoted the following: Office Assistant I - "Application fee pursuant to Resolution 2505 a non-refundable fee of $15.00 must be submitted with the application. Checks must be made payable to the City of Bremerton and if paying by cash exact amount is required. In addition, those applicants participating in the written test will be required to pay a testing fee at the time of the test." Mr. Green's response to that statement was the NAACP finds this to be asinine. He questioned why should people, who can't afford it or don't have a job, have to pay $15.00 to apply for a job with the City? He understands that all someone has to do is say they can't pay the fee and it will be waived. Who, reading the application, would know that - no one. He asked what must someone do to declare that they are unable to pay the fee...provide their 1994 income tax form, birth certificate, etc.? He was told all a person had to do was to say they did not have the money to pay it. He also questioned is there a penalty if someone is caught lying about their ability to pay? He could not understand how intelligent people could pass such a resolution when there are many poor people in Bremerton that don't have $10.00 let along $15.00. If he told the people he represents about a job opportunity, by the time they raised the fee the application would be closed. He TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 4 of 30 begged the City Council to change the requirement for the fee. He was also told the City did it because other cities have done it. Well, other cities do lots of things we don't do. He noticed none of the cities that have organizations that will resist this kind of action, such as Seattle and Tacoma, are listed as having application fees. Even though it may be legal, at one time it was legal to make him, as a black man, sit at the back of a bus, but did the Bremerton City Council decide to adopted that policy too, of course not! The NAACP pleas to the City Council to change the requirement of a fee. He does not believe he has to pay to apply for a job in the City of Bremerton because he is a citizen and pays taxes. Another concern raised by the NAACP was the fact that the Affirmative Action Officer left the City some 8 months ago and weeks prior to his leaving he broadcast loud and clear that he was leaving. Eight months later the City still doesn't have an Affirmative Action Officer. The other cities have them, why don't we follow that pattern. In his travels around the City of Bremerton, he sees all kinds of projects going on, particular in the streets. It is easy to find the last drop of water on Noah's ark before it would be to find a black face at one of those construction projects. That is unfair, both the shipyard,'Keyport and some of the other areas are laying off people. Black people are last hired and first fired and it seems to him the City should offer a better hiring policy than they do. He had a copy of some information from HUD, when Louis Mentor was Mayor, that HUD was encouraging the City to improve its hiring practices. He would make that information available to anyone. These are the concerns of the NAACP, who believe they are legitimate and moral concerns that the City Council should address. We are requesting with all the energy we can muster that you do that. He is not apologizing for the stand he is taking on behalf of the NAACP. Mr. Green concluded his comments by pointing out the City has a display case in the lobby of City Hall showing picture from the Human Resources Department...it is lily white. Jim Welling, President of the local Vietnam Veterans Organization, stated he was on a mission to let everyone know that their planning efforts are in full throttle for Rendezvous Northwest, which will be a large reunion and banquet at the Kitsap Pavilion on September 2. This event will feature a prime rib and salmon dinner, live entertainment, and guest speakers. He encouraged members of the public to purchase their tickets from the various outlets and that tickets will not be available at the door the night of the event. It is their hope that veterans of all wars, all family members, all TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 5 of 30 DOD workers supporting the war efforts, friends of veterans be represented at that program. Additionally, they are working with Bremerton Main Street Association to fund a Fire Works Salute in the bay the night of September 2nd and they are aggressively raising $25,000 in donations for the fireworks. He publicly thanked all of the people, who have helped out on this project so far, such as Washington Mutual, and many taverns through Jennings Distributing Company. Carol Atkinson, Bremerton Main Street Association, commented on the excellent performance of the Mexican Band on August 11, which was sponsored by the Asteca Restaurants. The last Concert on the Boardwalk will be held August 18, featuring Jumblassey, caribbean dance music. Don Atklnson announced the 2nd Annual Tour Day Bike Ride will be held August 19, starting at the boardwalk at 8:30 AM and traveling south to the Sunnyslope area and Bremerton National Airport. Participants can choose a 20-mile ride and a 35-mile ride, with a $15.00 admission fee. This event is co-sponsored by West Coast Cycling and Bremerton Main Street Association. Barbara Payton, President NAACP - announced the NAACP will hold a forum on September 8, 6:00 P.M., in the Council Chambers. On a personal note, she'called the City regarding the need for a yield sign or something indicating traffic caution where traffic can turn into and out of the Red Apple Grocery store on Kitsap Way. No one responded to her earlier call and she felt the issue was very important because she had an accident at that site and she is being accused of hitting someone whereas the guy hit the side of her car. She feels it is very dangerous going in and out at that location. 7A - CASAD DAMEVALUATION -- PROFESSIONAL SERVICE8 WITH R.W. BECK, #AB95-162 The City's Casad Dam was constructed in the mid - 1950's to impound drinking water supplies. The Department of Ecology inspected the dam structure and concluded in 1994 that the dam was well constructed, maintained, and could handle stresses due to floods and earthquake. As a requirement of our dam safety program, Ecology has requested a geotechnical evaluation of the rock abutments. R.W. Beck was selected for this work for their expertise in dam engineering. The cost of this project is $50,466. Kathleen Caha11, Water Resources Manager, stated Casad Dam sits in a valley that is butted with basalt rock. The subject contract is for geological work for the area surrounding and abutting the dam and will include collecting data on the rock joints, verifying the strength of the rock, possible erosion and seepage around the dam, and develop maps and a final report. The project manager selected #1204 TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 6 of 30 for this project is an internationally known dam expert and president of an International Dam Association. Public comment - none. Mr. Overson stated one of the primary results of this contract is a report. He asked if a copy of the report or an executive summary of the findings will be generally available to the public for their review, such as public libraries? Ms. Caha11 stated copies of the report would be available upon request. She agreed that having the report available at the Kitsap Regional Library would be a good idea along with other information they have about Casad Dam. Mr. Law complimented Ms. Cahall on her display and her involvement with the public at the Kids Day event on the boardwalk. He had a concern with Section 7 - Insurance And Hold Harmless, in that one paragraph indemnifies R.W. Beck and a second paragraph indemnifies the City, which to him looks like an attorney's holiday. He asked how do we keep from having this happening? Ian Sievers, City Attorney, stated this is not the first time it has happened. As mentioned in the Pre-council Study Session, the City has used reciprocal indemnity paragraphs with other contracting parties, typically Kitsap County, when entering into interlocal agreements. He was not sure there was a way around including them, it does not do a lot if both parties are partially at fault, there will simply be an allocation of'fault and neither party will be responsible for defending the action for the other party or indemnifying the other party. Possibly in the future simpler language will be proposed instead of all the verbiage that cancels each other out. Mr. Law stated he was not comfortable having the two paragraphs in the contract. M/S/C/U(Neville/Dawkins) to approve the Professional Services Agreement with R.W. Beck, and authorize the Mayor to sign, subject to City administrative policies and procedures. Vote on motion: Motion carried. In Favor: Opposed: Overson, Neville, Huff-Menees, Dawkins, Colvin, Winters Law 7B - CONTI~CT WITH PACIFIC PLAYGROUND FOR PLAYGROUND EOUIP~ENT AT WI~x~EN AVENUE PLaYFIELD, #AB95-171 FunCo, Inc. contracted with the City of Bremerton in June of 1994 for installation of barrier free playground equipment at Warren Avenue Playfield. FunCo was unable to provide the system specified in the contract. This project is possible because of funding made possible through a Community Development Block Grant. An extension of this grant #1326 #1340 TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 7 of 30 has been secured through December 31, 1995. The second lowest bidder, Pacific Playground, Inc. has agreed to provide the playground equipment at their April 1994 bid of $31,349 (including tax). Request permission to contract with Pacific Playground, Inc., for installation of the playground equipment for Warren Avenue Playfield at the aforementioned price. Jodi Wroblewski, Assistant Parks Director, briefly restated the facts identified in the summary statement and added that the "ship" would be handicap accessible. Public comment - None. M/S/C/U(Overson/Law) authorize the Mayor to contract with Pacific Playground, Inc. to supply playground equipment, as bid, at Warren Avenue Playfield for an amount of $31,349.00. M/S/C/U(Overson/Winters) to authorize Budget Adjustment 95-30 to move the funds out of 1994 to 1995. 7C - INTERGOVERNMENTAL PURCHASING AGREEMENT: OFFICE OF STATE PROCUREMENT, #AB95-172 Purchasing through the (Washington) Office of State Procurement (OSP) has provided' the City of Bremerton with access to a wide range of products and services at volume-discount prices at a significant savings. The cost of providing OSP services has been supported by a 1.9% Purchasing Administrative Fee (PAF) applied to all non-vehicle purchases. A $100.00 fee has been charged for each vehicle purchased through state contracts. The Intergovernmental Agreement represents a fundamental change of OSP organization to a subscriber supported State Purchasing Cooperative. The Cooperative is supported by an annual subscription on a scale based on each political subdivisions annual budgeted expenditures. The City of Bremerton's subscription fee is $2,000.00 per year. Prorated by OSP for 1995 at one-third (September 1 - December 31), and 12 months of 1996 the fee is $2,660.00. The fee was set by OSP from the 1993 State Auditor's Report, "Local Government Comparative Statistics" using the City's 1993 budget of $35,893,403. OSP will continue to invoice $100.00 per vehicle purchased from state contract. 1995 fee paid for Non-vehicle purchases was $68.00. In 1995, the City purchased 20 vehicles and paid a fee of $2,000.00. If the City does not participate in the Cooperative, it will not have access to State vehicle contracts and will have to independently bid for its vehicle needs. When the City has bid #1524 TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 8 of 30 vehicles, costs have been minimally $2,000.00 per unit higher than state contract pricing. Gil Johnson, Purchasing Supervisor, stated as identified in the Summary Statement, the City has availed itself of a number of State contracts. The State Division Of Purchasing has also allowed the City to go directly to vendors and contractors to buy the commodities, with the exception of vehicles, and in doing so have been able to bypass the 1.9% Purchase Administrative Fee. It is apparent such action was upsetting to the State and they have come back with a Purchasing Subscription Fee. If the City does not participate in the intergovernmental cooperative purchase agreement, we'll not have access to those contracts and vendors that have provided State contract pricing. It is to the City advantage to sign into the subscription cooperative. Public comment - none. Mr. Neville pointed out the agreement also states that the City retains their right to go out independently and seek bids. Mr. Johnson stated that was correct. Mr. Overson stated what is proposed is essentially doubling the fee and questioned the motive for the increase? Mr. Johnson stated the revenue it would generate was probably part of it. History has shown that a number of cities and other agencies have done what the City has and bypassed the 1.9% administrative fee by going straight to contractors. State agencies are required to buy items through the State Purchasing Division, but municipalities, school districts, counties and other special agencies are not. He requested a copy of the State's OSP budget, both expenditures and revenues, so the City could take a first hand look. He is aware the City of Seattle is paying $5,000 per year to belong to the cooperative and Kitsap County is paying $4,000 to join the cooperative. M/S/C/U(Colvin/Dawkins) authorize the Mayor to approve the State of Washington Intergovernmental Cooperative Purchasing Agreement. President Huff-Menees noted Mr. Johnson has agreed to provide a letter for the Council to State legislators so that issue can be addressed with them. Mr. Johnson stated in discussing this issue with the City Clerk, they came to the conclusion that a more responsive response might be made if the request was directed through the Association Of Washington Cities preliminarily. 7E - BUDGET AMENDMENT - 14TH STREET (PARK AVENUE - SHELDON BLVD) RELOCATION DESIGN, #AB95-174 The Engineering Division, in cooperation with the Parks Department, #1764 TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 9 of 30 plans to initiate the Evergreen Park Expansion project with design of the relocation of 14th Street between Park Avenue and Sheldon Boulevard (approximately 180 feet south) this fall if adequate funds are provided. The relocated 14th Street will have curb and gutter, sidewalk, storm drainage, lighting, asphalt pavement, and a traffic circle at 14th and Park. The Engineering Division requests a budget adjustment allocating $10,000 from the Real Estate Excise Tax Fund to design the relocated 14th Street for construction next spring. Mark Souza, Senior Engineer, stated the Engineering Division in conjunction with the Parks Department feels that this would be the time to design 14th Street relocation in conjunction with the Evergreen Park expansion. This request addresses just the funding for the design with construction taking place in 1996. Public comment - none. Mr. Neville asked if he understood correctly that the design would relocate 14th street through the City owned property where the old quonset hut currently sits; and if it will tie in with the artist conception for the Evergreen Park Plan? Mr. Souza stated that was correct. Mr. Nev~lle noted it ties in with what is desired to preserve the neighborhood into a solid neighborhood. Mr. Sousa pointed out it should also slow down traffic traveling along Park Avenue. Mr. Overson noted one of the big applications of Evergreen Park is the boat launch. The change being proposed will make the access significantly more difficult for boats, particularly for larger boats. He asked if that has been taken into account? Mr. Sou=a asked if Mr. Overson was talking about the traffic circle at Park Avenue or access on sheldon Boulevard? Mr. Overson stated all of them would be a concern. Mr. Souza explained the traffic circle at Park Avenue could be maneuverable by a good driver and they will make sure the design allows them to access the boat launch. Mr. Overson pointed out the drawing in the Agenda Packet shows the tie in to Sheldon Blvd., and 14th as a real sharp curve. He asked if that access will be improved in the design? Mr. Souza noted it was a preliminary drawing and not a final drawing. Mr. Overson stated Mr. Neville just reminded him that Sheldon Boulevard may change its course to accommodate the access. He also questioned if additional parking will be part of the new design? Mr. Souza stated yes. Mr. Colvin asked who would be developing the design for this project? Mr. Souza stated an outside firm. M/S/C/U(Neville/Winters) to approve a budget adjustment allocating $10,000 of Real Estate Excise Tax monies to the project. TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 10 of 30 8A - ORDINANCE (FIRST READING) DEFINING CONTINGENCY RESERVE FUND, #M395-176 This ordinance will re-define Fund No. 103 so that it will serve as both a contingency reserve for the General Fund and as a source of capital funding when the required level of contingency reserve has been fully funded. The contingency reserve balance is set at a minimum of $550,000, and a maximum of $650,000. Use of the reserved money will require a unanimous vote of the City Council. Kathleen McCluskey, City Clerk, stated the City has had a Cumulative Reserve Fund for a number of years, but there were no minimums or maximums set on that fund. This action will preserve the amount of money for contingency that can only be spent by a unanimous vote of the City Council. It will also free up money in excess of that balance for capital expenditures, which is what.it has been used for, but with no definition or policy. This proposal creates the policy, reserves money for emergency situations, and allows the Mayor and staff to allocate, through the budget process, additional funds and interest for expenditures. Mayor Horton stated when going through the budget each budget cycle, discussion would revolve around the Cumulative Reserve Fund and what constituted non-recurring capital expenditure. By the time all was said and done, not much was spent out of the Fund, yet we have a City wher'e the infrastructure is deteriorating and aging without the hope of finding any dollars to replace things. This does both, it makes the City Treasurer and Bond Council feel more comfortable about having a contingency, helps the City's bond rating, and also gives the City an amount of capital, when it exceeds the $650,000 level, that can be drawn from to replace some of the capital items that typically need to be replaced. Mr. Neville asked what percentage of the General Fund was set aside as reserve? And, how close will this approach that percentage? Ms. McCluskey stated there is not a specific percentage mandated, but the $650,000 figure was agreed upon as a "comfortable" amount. Out of the $18 million General Fund budget (excluding all of the Utility Fund), this amount is acceptable, however, the higher the better. This figure does put the City in a better position than it has been in the past. Mr. Overson had a concern about placing money in the fund without the ordinance stipulating that a certain amount of money is placed in the fund annually. Mayor Horton explained in the past, this was an accumulative reserve fund that could only be spent on non- recurring capital items. Mr. Overson asked the source of the money? In the past, money was put in this fund every year. Mayor Hotton explained the idea was to use those funds toward capital expenditures, but by the time the discussion got down to which TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 11 of 30 pieces of capital would truly fit the definition, we always wound up spending no money. This insures that there will be a minimum and maximum of $500-650,000, and it will provide the City with some capital to spend on City needs. She reminded Council out of an almost $20 million dollar budget, excluding Police vehicles, we spent about $15,000 on capital. You cannot run an organization like the City with that small amount of capital anymore than managing our own home without eventually having to take care of the roof, heating system, etc., and that is what the City has been looking at. This does two things, it provides a stable savings account and provides revenue to do some capital needs expenditures that are desperately needed. Mr. Overson stated he understood what the Mayor was saying; however, he was concerned that the ordinance did not contain an amount to be added annually. Mayor Morton stated Mr. Overson was correct, if Council desires to see the contingency build beyond the $650,000 mark. At this point, the Administration felt the $500,000 -$650,000 was a good starting point and as time goes by it may be desired to increase that amount. Mr. Overson asked if the Mayor was saying she has identified capital needs that this fund will be the source of funding, or that there are capital needs that she intends to fund in 1996, thereby not having to put money into this fund and using that money potential for the capital needs defined? Mayor Hotton stated she is wanting to earmark the funds in excess of the $650,000. Mr. O~erson again pointed out nothing has been identified as to how money gets into the fund. Mayor Morton stated if the account goes below $650,000, the Administration will develop a plan, with Council's approval, to put money back into the fund until it reaches the minimum of $500,000 up to $650,000. Mr. Overson questioned if he understood correctly that the $100,000 that was being added to the Cumulative Reserve Fund was just a policy and not something that was required. Mayor Morton stated Mr. Overson was correct and basically it was looking at having $100,000 go into capital needs, but it did not get spent in that direction. Mr. Winters stated he would support this proposal; however, it is his hope that in future years the account can grow to a 10% level. Mayor Morton stated if the City had $1,800,000 in the contingency fund it would mean we would have more money overall to do other things. In 1996 she is looking at having to spend $75,000 on Police vehicle replacement, as well as the requirement to remove 2-3 underground storage tanks, which will cost from a few thousand dollars up to $15,000 each. She is also looking at some computer needs that need to be addressed, but that isn't all that needs to be considered as capital projects. This proposal is not the ideal, but it is a start to address both the reserve and deal with some of the City's capital needs. #2459 TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 12 of 30 Mr. Law stated his support of the proposal, but he did observe the City is not that affluent and having to issue bonds each year for the City's operating budget. Mayor Hotton pointed out what Mr. Law was referring to is the TAN, which has more to do with "cash flow" than money. Mr. Law stated he looked forward to the time when the City had enough money that it did not have to use a TAN. Mr. Colvin asked if there was a plan to incrementally increase the contingency account? Mayor Horton stated not at this point. Mr. Colvin pointed out for the public's benefit, the use of a TAN does not lose money on that type of operation. Mr. Overson stated to put this in a better perspective, the City does have a Capital Improvement Plan, which is used to plan for investment of funds to replenish and/or repair the capital owned by the City. And, the City must have that plan in order to obtain necessary funding.in some areas. Mayor Hotton stated yes, in theory and what happens when you look at the aggregated needs in a city for capital, we far exceed the amount available to spend. The Capital Facilities Plan stipulates that anything on the list must have a revenue stream to match. But, beyond that the City has a lot of other capital needs that are smaller in nature, but have no funding source.. In terms of the larger projects, the City is in a little better shape and funding through State and Federal dollars is available for the Arterial Street Plan, but it does not address the Non-arterial Street Plan. The R~al Estate Excise Tax fund can be used for items such as parks and any capital items. Historically, over the past 6-8 years almost 100% of those funds have been spent for park projects, such as the boardwalk and Pendergast Regional Park. But, when it comes to the smaller items the City does not have a dedicated funding stream, which is what is now being established through this proposal. M/S/C/U(Overson/Law) to approve ordinance on first reading, establishing a Special Revenue Fund of the City to be called the Contingency Reserve Fund and repealing BMC 3.36. 9A - CONTINUED PUBLIC HEARING: APPEAL OF PLANNING COMMISSION DECISION TO UPHOLD THE PLANNING DIRECTOR'S DECISION TO ISSUE A CEASE AND DESIST ORDER FOR A ,'JUNKYARD" LAND USE IN THE INDUSTRIAL GENERAL (IG)" SONE, WHICH IS IN USE WITHOUT A SPECIAL USE PERMIT; APPELLANTz WILLIAM SESKO= LOCATION: TAX PARCEL e4564-001-027-00 NORTH SIDE OF WHRNER ROAD, 265 FEET WEST OF KEAN STREET, #AB95-169 The CEASE and DESIST ORDER was issued in response to apparent illegal use of the subject property as a junkyard. The Order was appealed and upheld by the Planning Commission. The City Council is the hearing body for appeals of Planning Commission decisions. When hearing an appeal, the City Council may take any of the following actions: TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 13 of 30 Uphold the Planning Commission's decision. Overturn the decision, recognizing the structure as a legal but nonconforming duplex. Modify the decision by adding or deleting conditions. Remand the decision back to the Planning Commission for further review of circumstances or impacts identified by the City Council. (The City Council should include specific issues to be considered). President Huff-Menees announced anyone wishing to testify at this public hearing to please sign the Declaration Statement located in the back of the Council Chambers. And, she asked the "Appearance Of Fairness/Conflict Of Interest" question with all Council members being seated. Shahs Jensen, Planning Department, stated as per the reason for continuance of this hearing, a list of exhibits presented to the Planning Commission, which Mr. Sesko requested, were included in the Agenda packet. He also included one of the exhibits in that documentation. He raised a point of clarification as to the procedure Council wished to follow in this hearing, since there was discussion about a discrepancy as to procedure at the previous Council meeting when this issue was discussed? President Huff- Menees directed Mr. Jensen to use the same basis as before. Mr. Jensen provided view graphs showing the subject property located on the north side of Werner Road just west of Kean Street. He provided the following background on the City's enforcement actions on the property: The property was annexed into the City in late 1994. Two buildings were moved onto the site from Kean Street after the parcel was purchased. One of the houses on the property was without a foundation. On March 29, 1995, three abatements for attractive nuisances and open and dangerous buildings were issued by the Building Department along with the Planning Department's CEASE AND DESIST ORDER for an illegal junkyard use. The requirement within the Industrial General (IG) zone to operate a junkyard is a Special Use Permit or proof that prior to annexation the property was a legal nonconforming use in the County. The CEASE AND DESIST ORDER outlines the violations and requires the following action to be obeyed: cease and desist the use of the property as a junkyard, to remove houses stored on runners, furniture, wood scraps, appliances, chairs, paint, cans, tires, mattresses, oil containers, four bulldozers, railroad ties, bottles and general debris from the property. This ORDER was appealed to the Planning Commission, who upheld the ORDER as being valid and the ORDER has now been appealed to the City Council. Mr. Jensen provided a view graph of the Land Use Table from the Zoning Ordinance, which specifies that a junkyard in an IG zone requires a Special Use Permit. Mr. Sesko will probably claim that the TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 14 of 30 property is a legal nonconforming use. To operate a junkyard in Kitsap County a site must have a zoning designation that will allow that use. Prior to annexation the subject site was zoned residential. Following annexation, the site was rezoned as Industrial General incongruence with the Auto Center Way area. Mr. Jensen stated he reserved the right to show a video of the subject property following Mr Sesko's presentation. William Sesko 3536 Arsenal Way, questioned the correctness of Exhibit A being comments submitted by the public rather than the notice he received from the City? President Huff-Menees asked Mr. Sesko if all of the exhibits are listed on the itemized list he was given and did he have an opportunity to view them prior to this hearing? Mr. Sesko stated he was not sure if the Notice Of Appeal should be listed as an exhibit. President Huff-Menees stated she did not believe that was necessary Ian Sievers, City Attorney, confirmed the Notice Of Appeal would not be an exhibit. Mr. Sesko questioned shouldn't the Planning Department's video tape be listed as Exhibit A? President Huff-Menees stated she did not believe Council was concerned with the order of the exhibits as they were with addressing his concern of last week that he be made aware of the exhibits. So, if we can proceed knowing that you have seen the exhibits and are aware of what Council will see during this hearing. Mr. Sesko stated ok. He next raised an issue of not receiving the proper notification for the Planning Commission hearing, which in his opinion required the inclusion of a statement of the appeal including a summary of the factual findings and conclusions disputed in the letter of appeal. When he brought that point to the Planning Commission's attention they did not give it, in his opinion, serious consideration and showed an appearance of disregard for the way to conduct a public meeting. He asked for Council's comment on that point. He also believed this issue should be remanded back to the Planning Commission so it could be brought forward in the proper manner. President Huff-Menees questioned if the point about the Notice Of Appeal had been raised by Mr. Sesko at the previous Council meeting? Mr. Sesko stated no, the hearing was continued because he didn't receive a listing of exhibits. President Huff-Menees explained the City had satisfied the issue of exhibits and she was inclined to agree with the Planning Commission in terms of the Notice of Appeal having been made available to him thereby satisfying the City's requirement in that respect; and it didn't need to be remanded back to the Planning Commission. Mr. Sesko asked then why would it be specifically stated in the Council's rules of procedure. He emphasized it states "the notice shall contain...", it does not make it optional. Mr. Overson pointed out the Notice Of Appeal does contain the information identified by Mr. Sesko. Mr. Sesko stated on subsequent notices he received elaborated on their intent. Mr. Overson stated from his viewpoint they have TAPE #1307 City Council Reg. Mtg. Minutes August 16, 1995 Page 15 of 30 substantially met the requirement. President Huff-Menees stated she supported Mr. Overson's position and the City Attorney concurs with that position; therefore the hearing should proceed. Sievers, City Attorney, stated he felt there was substantial compliance with the Ordinance. The scope of the appeal was well stated and how much fact finding is included is pretty much discretionary. TAPE #1308 President Huff-Menees reminded Mr. Sesko that at the previous Council meeting he was asked him if there was anything else he wanted addressed in terms of continuing this public hearing. At that time, he stated his concern was the list of the exhibits and that nothing else needed to be address, in his opinion, and the hearing could go forward once he received the list of exhibits, which the Planning Department provided. Mr. Sesko stated he had a difference of opinion and felt the issue should go back to the Planning Commission. President Buff-Menees restated the City complied with his request from the previous Council meeting and the pubic hearing needs to move forward. Mr. Sesko stated he realized that, but his factual point is the Notice Of Hearing issued for the Planning Commission Hearing. Mr. Neville called for a point of order and explained remanding something back to the Planning Commission is an option for the Council, but the discussion on the issue must take place to find out which option is appropriate. Mr. Sesko stated the point he wants to bring up is that because of his concern over the validity of the Notice Of Appeal, he was not prepared to make a proper presentation to the Planning Commission. Mr. Sievers stated one of the reasons he did not think a prejudicial hearing should be remanded was that the notice is given to surrounding property owners to inform them of the nature of the appeal. Mr. Sesko was certainly aware of the Planning Commission hearing. The second thing is the notice for tonight's hearing, which also invites public comment and testimony, did contain a more detailed scope of the appeal and those people would be entitled to testify for Council's consideration, which is a reason they can take that testimony into account and probably should not remand it back to the Planning Commission. Mr. Sesko emphasized when he brought up this issue to the Planning Commission they did not respond to him, but went onto take a vote against him without completing the public hearing. Mr. Sesko moved forward with his presentation and explained he felt the site met the criteria of a "storage yard or outdoor storage" rather than the City's definition of a "junkyard". He agreed that the subject site needed to be cleaned up and a lot of the materials were just plain junk. He is renting the site to Mr. Burley as a favor to Chuck Haselwood. He acknowledged under the City's Zoning TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 16 of 30 Ordinance the use as a junkyard did require a Special Use Permit. He felt a nonconforming use would not apply to the site because it could be legally zoned. He brought up the use as a "construction services yard" and felt his site fit that category as well. That use is permitted outright in the IG zoning, and that use was established prior to the annexation. He did not understand how that would violate the zoning rules. He referenced Resolution #2508, adopting the City's revised Comprehensive Plan in which it shows Werner Road as an industrial corridor. Under recommended policies within the Comprehensive Plan, it states: "The City shall work with the Kitsap County to insure both the County plan has designed this corridor for future industrial development. The City shall insure that a utility capacity can adequately serve this area and plan for needed service extension and infrastructure improvements. The City shall work with local property owners.to coordinate annexation of unincorporated islands as soon as possible. The Werner corridor is within its jurisdiction ..... " Sesko stressed this property was used for a contractor service storage yard before annexation. Evan Burley was working with the City to remove the houses off Madison Street. If the property was in the County, Mr. Burley could have located the houses within that island. When the site was annexed and the zoning was lost, Mr. Burley was not able to move them further into that area. Now there is a process where Chuck Haselwood may give Mr. Burley a piece of land further up that is still in the County. It may take some time to get all of that worked out, but in the meantime as a "contractor storage yard" he believed the equipment stored there would be legal. He noted he now has access to the back of this property and if Mr. Burley doesn't clean up the area he will do it himself. Mr. Jensen submitted Exhibit A from the Planning Commission hearing, which is an aerial photo submitted by Dave Barcelon, owner of the adjacent property, showing the condition of his property under construction and the Mr. Sesko's lot. Mr. Winters asked how current was the photo? Mr. Barcolon stated it was taken about four months ago. Mr. Winters asked Mr. Sesko how long he owned the subject site? Mr. Sesko stated 15-20 years, he bought it as a favor for Evan Burley and gave him an option to purchase back the property. Mr. Winters asked how long the site looked in its present state? Mr. Sesko stated since Evan Burley moved onto the property, which took place shortly before the property was annexed. The County was requiring Mr. Burley to tear down the houses, which is what created the mess. Mr. Winters asked how long ago since the County asked Mr. Burley to clean up the houses. Mr. Sesko explained about a year ago the County allowed the houses to be moved out of the city onto County property and then asked him to tear them down. Mr. Winters asked Mr. Sesko when he planned to clean up the site? Mr. Sesko stated right a way. TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 17 of 30 Mr. Jensen referenced Exhibit B - a letter, and noted Mr. Sesko stated Mr. Burley had an agreement with Kitsap County regarding some houses that were moved off his property onto the subject lot. He quoted the following from that agreement: "Mr. Burley agrees to demolish all four structures (three stick frame houses and one old mobile) currently situated off Werner Road on the parcel with the Assessor's Account #4564-001-027-0007 by June 15. 1994." (Note that is the subject property.) Mr. Jensen pointed out three of those houses are still there and one is now being demolished. The agreement went on to say: "Upon demolition of the above mentioned structures. KitsaD County will agree to the moving of the remaining house currently on Madison Street to the lot with Assessor's Account #4564-001-027-0007 upon the submittal of a Building Permit for the structure; further .... " Mr. Jensen has seen no evidence of a Building Permit for the structure, obviously the other structures are still there over a year later. Therefore, the agreement with the County was not in effect because it was violated by not meeting the June 15, 1994, deadline. Secondly, Mr. Sesko picked out a couple of uses from the Zoning Code that would be allowed outright in that zone. However, anyone exerting the existence of a use, whether legal or nonconforming has to prove it is a legal use through land use permits, building permits or business licenses. He would ask Mr. Burley to produce those as evidence so some type of use could be established and resolve any misunderstanding. Mr. Jensen proceeded tO show the video, which was made about the time the CEASE AND DESIST ORDER was issued. David Barcelon, 4701 Kean Avenue, stated he just built the new Truck Town in front of Mr. Sesko's property. He spent approximately one million dollars on the new facility and the property directly behind him has three dilapidated houses, numerous bulldozers, and vehicles in different states of disrepair. He is appalled that the City has to go through such a lengthy process to clean up the mess. He would not consider the subject property to be a junkyard, he'd consider it a garbage dump. David Nelson, Building Official, gave a brief history of the City's enforcement actions on the subject site: All but one of the homes shown along Kean Street were under abatement when Mr. Barcelon purchased the "Truck Town" site and the houses were moved into the County. Kitsap County immediately took enforcement action and put the houses under abatement as dangerous buildings. (Note: the letter Mr. Jensen quoted from indicated that Mr. Burley agreed to demolish the houses, except for one. That letter also stated these structures were previously condemned by the City of Bremerton.) There were nine structures at the time they did an earlier inventory of the "Truck Town" property. As indicated, there has been no permit activity on the remaining houses, although Mr. Burley has been encouraged to seek proper permits. Mr. Burley was TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 18 of 30 informed the property was to be zoned Industrial General, thereby giving him an opportunity to apply under current zoning, which he failed to do. The City's latest enforcement action was taken in March of this year and after visiting the site today he could see that very little if anything had been done to clean up the area. All deadlines are passed for these issues. An appeal was made to the Appeals Board, who uphold the decision that it was dangerous, so he is proceeding with that activity. He supports the position that there was not an established used on the site and nothing but residential units were visible, most of which were dangerous or derelict buildings. Mr. Sesko stated the property has been used as "storage" since he became the owner. When the site was annexed into the City he expected it to have IG zoning, which was accomplished. The IG zone allows storage yard out right, which should be a continued use. He feels the bulldozers and the house on wheels would be legal storage. The mess around the property was created by the demolition of the buildings by Evan Burley, which was not done in a very professional manner. He noted there was not a lower access to the property because Mr. Barcalon had it blocked off during construction of "Truck Town". Mr. Barcalon told Mr. Sesko emphatically that he could not cross his property, yet he had the alley that the City vacated blocked with his equipment/construction process, which is a'problem for him even up to today. He does have a demolition permit for the one house that was on the property. He thought the non-attached houses had been moved onto his property with the City and County's approval since they were moved during daylight hours and very visible to the public. He will appeal the use as a "storage yard" because that is his right. He finds this type of process to be a waste of time. Getting into a legal process to protect his right is not the way it should have to be done, but was something he had to do. If we look at the nonconforming use as a junkyard, which the City has designated the site, if it was used as a junkyard prior to annexation it requires a Special Use Permit and consequently cannot become a nonconforming use. The only option available is being a legal use, which it is. He questioned that point in prior discussions. The nonconforming use is for only activities that are not permitted within a zone with a Special Use Permit. He questioned how would that use, if it was proved that it existed before, be allowed? Mr. Jensen stated the definition of a nonconforming use includes all types of uses. He quoted: "Any activity, development or condition which is legallv established prior to the effective date of this ordinance or subsequent amendments to this ordinance. and which would not be permitted out right nor as an accessory use under this ordinance and is not specifically listed as being permitted by Special Use Permit, P.U.D. or other special permitting process". He went on to explain there has not been an established use on the property, if TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 19 of 30 there had then there would be a record of an application for a Special Use Permit to prove legal use before annexation. Mr. Sesko stated if that was a legal nonconforming use before annexation, then he would have to apply for a Special Use Permit before it could continue to be used in that manner. Mr. Jensen stated he has no proof of any use legally established or illegally established on the property prior to annexation. Mr. Sesko stated no, it wouldn't apply. Mr. Sievers stated the difficult part is whether or not it was legally established in the County. Mr. Jensen stated the City makes no assertion that there is a legal nonconforming use on the site, that is Mr. Sesko's assertion if he chose to make such a statement. To be legal in the City he needs to apply for a Special Use Permit, then it would not be a nonconforming use. Mr. 8levers explained first of all the development has to be legally established by the effective date of the Zoning Ordinance. In the case of annexation, the City recognizes the County's zoning was legally established under the County's Zoning Code. Before annexation, State Law requires the City to continue recognizing that use as a nonconforming use. To establish a nonconforming use as the defense to a violation of the City's zoning code, it first of all has to be legally established under someone's law. The City's point is there has not been any evidence produced that it was a permitted use or an accessory to a permitted use in the County. Mr. Sesko stated his interpretation would indicated that if it is permitted'with a Special Use Permit or outright, it does not require any further action. Therefore, a non-legal use in the County has been continued and annexed into the City, then, the use becomes legal. Mr. Sievers explained no, it stays non-legal. Mr. Sesko stated it was approved under that zoning with a Special Use Permit within the County. Mr. Sievers pointed out there was no action initiated for a Special Use Permit when the site was in the county. Mr. Sesko restated if a person has a illegal use and he applies for zoning that makes that use legal, then he should not have to go through a Special Use Permit process. This exclusion more or less indicates that if the use requires a Special Use Permit then it can't be a nonconforming use, it would be an out- right approved use. Mr. Sievers stated no, you can get it approved as a legal use if you go through one of those processes, i.e. Special Use Permit, P.U.D., etc, then it becomes a legal use. Mr. Sesko stated then if he proved prior use it wouldn't do any good under such a scenario because it precludes that. Say the site was a nonconforming junkyard that had been in use for 20 years and there were records validating that use, but because it required a Special Use Permit it could not come in under the nonconforming use. Mr. Law called for a point of order and emphasized we are beating a dead horse because this was already established as being illegal when the property was in the County and upon annexation it was also not zoned in the City, so there is no legal justification. Mr. Sesko repeated the zoning specifically allows a junkyard. #1078 TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 20 of 30 Overson suggested Mr. Sesko read the document sent to him that clearly defines that it is not legal and why it is not legal. Mr. Sesko again responded that he believes it to be a storage yard and not a junkyard. And, the junk was strewn around because the City required the demolition of the houses. All of that was done with the City's and County's permission. Mr. Colvin asked the City attorney what is demanded of the Council in this case and what are the real issues? Mr. Sievers explained the nonconforming status is a defense to the CEASE AND DESIST ORDER, which he views as a pure legal issue especially given the fact that there hasn't been any evidence provided that would support Mr. Sesko's position. The legal issue on that is it was not a legally established as a nonconforming use; therefore it has no legitimacy and no defense to its current operation as. a junkyard. The other issue is what is a junkyard and is the position taken by the appellant in that he believes it falls under a different definition and is an outright permitted use in the IG zone. It is up to the City Council to waive the various things on this site, the way the site is maintained whether that falls within the junkyard definition or storage definition that was mentioned by the appellant. There has been no evidence presented that it is a legal nonconforming use, so it needs to move on to see if it fits within the junkyard definition. Mr. Winters stated after viewing the video and listening to the testimony he was concerned about the direction this issue seemed to be going. He believes the Building Department represents health safety and welfare; and the City is lucky that nothing has happened at this point because the what he viewed on the video looked pretty dangerous. He stated his support to uphold the Planning Commission's recommendation. M/S/C/U(Winters/Law) to UPHOLD the Planning Commission's decision to uphold the CEASE and DESIST ORDER and hereby recognize the property at Tax Parcel #4564-001-027-00 (Werner Road) as being used as a "JUNKYARD", which is not allowed in the "Industrial General (IG)" zone without approval of a Special Use Permit. Mr. Overson stated Mr. Sesko admitted that the site is a storage yard and he does not dispute the City's action against baring it as a junkyard. He was not sure how the issue got this far, but he tends to support the motion. Motion received a unanimous vote. 9B - PUBLIC HEARING: COMPREHENSIVE PLANAMENDMENT & REZONE REOUEST FORTWOAD jOiNiNG PARCELS TOTALING 3.7 ACRES; AND ORDiNANCE (FIRST READING) 7 APPLICANT: FPH MANAGEMENT CONSTRUCTION, INC. 7 LOCATION: TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 21 of 30 WEST END OF EAST BROAD STREET, #AB95-177 The parcels are located at 1000 East Broad Street, off of Wheaton Way at the west end of East Broad Street. A Comprehensive Plan Designation amendment from "GENERAL & HIGHWAY COMMERCIAL (C-G)" to "MEDIUM DENSITY RESIDENTIAL (MDR)" is requested, along with a Zoning Designation amendment from "General Business (GB)" to "Multiple-Family Residential (MFR)". This proposal was presented and discussed at the Planning Commission public hearing on July 18, 1995. The Planning Commission recommends APPROVAL of the applications. The City Council is required to make a final determination on these requests, and if approved, pass an ordinance for the action. An Ordinance is included for consideration and first reading. President Huff-Menees asked the "Appearance Of Fairness/Conflict Of Interest" question. Mr. Winters stated he was personally acquainted with several of the proponents and asked if anyone had a problem with him being seated on this issue? President Huff- Menees announced there was no objection; therefore all members of the City Council were seated. Shane Jensen, Planning Department, displayed a view graph showing the location of the two vacant parcels with a combined area of approximately 3.7 'acres. The reason for a Comprehensive Plan Amendment and a rezone at the same time is because the City is required to have consistency between the long range Comprehensive Plan and the zoning of the property, which enacts the development requirement of specific uses on the property. The reason behind this request is the applicant is proposing to build a 43-1ot subdivision on the subject property. His discussion will center on what is the best land use in the subject area and whether or not it should be changed from Commercial Comprehensive Plan designation zoning to a Residential Comprehensive Plan designation zone. The requests go on the Comprehensive Plan from General Highway Commercial to Medium Density Residential, allowing residential dwelling units to a maximum of 18 dwelling units per acre. We would then see a general borderline between commercial properties to the north and residential to the south near East Broad Street. The zoning designation requested from General Business to Multiple Family, which would extend the residential zoning to south of East Broad Street. Considerable discussion took place over what is the best use of this property, which is located in an area that is abutting a residential zone. In the vicinity there are some small businesses on East Broad Street and some vacant buildings, Kings Table Restaurant and Family Pancake House Restaurant, with Parker Lumber located to the north along Wheaton Way. The abutting commercial property to the north is a vacant parcel owned by James Robinson. TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 22 of 30 When amending the Comprehensive Plan and rezoning, certain criteria must be addressed: (1) to see if the plan, map and elements and zoning would be consistent (by doing a rezone and Comprehensive Plan Amendment at the same time that requirement is being fulfilled). (2) There is a listing in the report about the Comprehensive Plan goals and policies that are most consistent with this request and some that are least consistent, so that Council can make their evaluation based on that information. Under Goal #3(D) in the staff report it states: "Keep major roads outside of Bremerton's neighborhoods." Mr. Jensen pointed out originally there was a proposed commercial access road that would be an extension of East Broad Street. Discussion between staff members and the developers addressed taking careful consideration when considering losing a piece of commercial property. Only about 9% of the City's land use is in commercial and 35% is residential, so Planning staff had to make some tough choices prior to their making a recommendation to the Planning Commission to approve it as presented. When this item went before the Planning Commission, it did so with this proposed road. Staff wanted to see the extension of East Broad Street to connect to the commercial areas and eventually be the first leg of an eventual road that would work its way up to Riddell Road and free up some of the commercial properties in the back. The Planning Commission did not find the idea of extending East Broad Street would be a good facilitator for commercial development; therefore they gave up on that idea and in their discussion and findings decided there needed to be some type of transitions between commercial zoning and residential zoning in the subject area. The Planning Commission decided, with their recommendation to rezone, they would look at getting development to be encouraged to the parcels to the west and south and to put a stub road along a small utilities easement that would eventually connect with Hanford Avenue to promote some residential circulation access. It would also extend East Broad Street out to connect with the parcel to the west, so when it developed it would have access. One of the policies that this proposal is least consistent with is economic development - residential encroachment into a commercial center can erode economic development possibilities and establish new incompatible neighbors. Mr. Jensen noted that was a valid point, but as mentioned in the subject area there will be incompatible neighbors on one of the properties that abuts the commercial zone. As part of the Comprehensive Plan review, Section 2(c) "Interests of the entire community" addresses the following: "It is in the City Council's purview, and is at the heart of the decision, to look at the different policies and even though they may conflict in some way, we need to find what the overall goals and policies should be...not look at them literally, but look at what is most appropriate for this location and at this time. An argument posed by the applicant is that it is hard to find TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 23 of 30 residential properties of an acre or more or properties that can be conglomerate to develop into a housing project. Regarding that issue, the Planning Commission and City Council needs to make the value judgements on the public interest for the City. The next criteria is what would the effects of the amendment be on the natural, economic and social environment of the City and will those affects be beneficial Mr. Jensen pointed out there is minimal effect on the "natural environment". On the issue of economic effect, that could go either way. Typically, rezones are usually changing zoning designations from residential to commercial for more property value, but in this case it would generally be considered a down zone, but in light of its location it may be a good place for such action to take place. The applicants have tired to make provisions that address seeing further residential development to the south and west. The subject area would be developed initially as its own isolated community focusing in on itself, but then providing later connections to other properties. Rezone criteria involves showing the need for the rezone for the following reasons: (1) there have been marked changes in the area that would necessitate a rezone or make a rezone ok if requested. Mr. Jensen highlighted there has been lots of commercial development within the past 10 years along the Wheaton Way corridor and is a viable commercial area, but we have seen vacancies come up as several businesses have moved to the north, just outside of the City limits. Part of the applicant's rational for the reason is that by providing more population closer to commercial centers there is usually an increase in demand for commercial services. The applicants hope to be the catalyst by providing a development that would be adjacent to commercial services. (2) The fezone will correct a zone classification or zone boundary that was inappropriate when established - Mr. Jensen identified that there was no incorrect zoning classification before and there is no overlay zoning designation that is being changed. (3) The rezone bears a substantial relation to the Public interest or welfare because there is a public need for a change of the kind in question; and that public need will be best served by changing the zoning classification of the subject property. Mr. Jensen explained there is a definite demand in the City for entry-level housing that this project would propose. However, consideration also needs to be given that under the City's comprehensive planning, we have found there is land within the City to accommodate the 20-year projection allotment of 20,000 people. (4) Are public facilities and services presently available and adeuuate or can be reasonably made available. Mr. Jensen stated all services are available and adequate upon extension to the property, which would come along with any subdivision application. TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 24 of 30 In conclusion, Mr Jensen touched on the connector street, which the Planning Commission took out based on testimony at that hearing. However, it was still Council's option to consider different types of development on a commercial project. The main reason the road idea for East Broad Street being a commercial road was dropped had to do with working with the applicant and Mr. Robinson, a property owner to the north of the subject site. Mr. Robinson felt the road extension would not facilitate growth to those properties to the north and somewhere it would have to bisect his lot, thereby reducing its development potential. Mr. Robinson also showed that he and the other property owners in the area have easement access to Wheaton Way and Riddell Road. It was shown that the property can be a good transitional use from commercial to residential. What is proposed is a fairly high intensity single family use. When we see commercial bordered by a dense residential development to a lower residential use there is protection for the properties. It was also concluded that if this rezone is granted and the project is approved, there should be a provision for an adequate buffer that is created by the applicants now on their property to protect the commercial property to the north, which is currently undeveloped, and stipulated as a condition. The Planning Commission found and recommended approval of the rezone and Comprehensive Plan Amendment based on the testimony given. Mr. Overson asked far clarification the density of the 3.7 acres as requested by the applicant? Mr. Jensen explained it would allow 12 units per acre. Mr. Overson stated he understood what was being proposed is to up to 18 at 3.7 acres, which equates to 67 units. Mr. Jensen explained the zoning and Comprehensive Plan designation would allow that much under the rezone. He pointed out the project would not be asking for that much density. Mr. Overson pointed out Council could not, at this time, consider the make up of the project and he hoped Council would not be troubled with site plans that are inappropriate for this hearing. Michael Brown, 1904 Marine Drive - partner in the Broadmoor Partnership, stated he and Bob Mathwig purchased the subject property over the past two years and have demolished four dilapidated residences, which were a source of concern to both the Planning Department and Police Department. During the past two years they have made extensive effort to meet the thrust of the Growth Management Act by locating infill sites in urban areas, which can accept incoming populations and reduce urban sprawl. It is further their feeling that this type of high density single family development in tight quarters in the downtown will also provide a means by which other planning goals more specific to the needs of our city can be accomplished. Some of these include: (1) creating ownership and pride of ownership, which elevates the overall quality of neighborhoods and community; (2) creating a TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 25 of 30 customer base for those businesses and commercial uses, who have already made a substantial commitment to be in Bremerton; (3) to capture for Bremerton a portion of the 4,000 incoming jobs and families as well as the estimated 6,000 service and support related jobs that will necessarily follow. Studies have shown that for every job created via the Federal government, it takes approximately 1.5 service support related jobs to sustain that one created by Federal employment. Studies have shown people will shop within 1/2 mile of their homes. Much effort by many people and organizations have gone into the revitalization effort of Bremerton. These efforts have been rewarded by the Navy's realignment of bases and Bremerton's success in having PSNS become the hub of a super port. This measure is expected to generate yet 4,000 Federal jobs after subtracting some prior reductions in force. Coupled with the Federal side are valuable efforts Ito attract other businesses to diversify Bremerton and reduce its dependency on Federal government employment. In deed, these efforts have resulted in several companies relocate here, such as Westinghouse, which is located in the commercial/industrial area west of SR-3. The infrastructure in Bremerton is largely completed and paid for except for some unfortunate rework of the sewer treatment plant. The Bremerton School District is in excellent physical condition with substantial capacity in many schools and a multimillion dollar fund on hand for new construction. Bremerton can absorb substantial additional population without incurring either capital or operating costs, that will generate substantial new revenues in the form of property taxes and sales tax revenues, if these residents will shop in Bremerton. Berry Keenan 1616 Arvon Avenue - partner in the Broadmoor Village Partnership, provided the following information from the most recent Kitsap County Real Estate Trends Report Spring/Vol. 6, which may help to understand what a new residential community can do for the City.of Bremerton: The current housing stock in Bremerton is growing older and increasing numbers of homes are being turned into rental units and commercial use and lost through obsolescence and condemnation. As a result, over the past 15 years homeownership in Bremerton has gone from 60-70%, down to 30-40% of the current housing stock. Along with this decrease in homeownership, the population has also declined steadily over this period. During this same 15 year period, single family homes in Kitsap County have increased 50% and commercial has also grown along with that population increase. Bremerton needs revitalization and it needs to reverse the trend of negative population growth. We need people living here to support the City facilities and businesses that have made a commitment to be here. When the population declines business declines, and the City declines. At the present time, Bremerton has over 80 acre of Commercial property available for development. Mr. Keenan felt the Warnet Road corridor was better TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 26 of 30 suited for commercial development due to its proximity to the highway system and other commercial developments. The City has conducted a research of available and unutilized residential lands and concluded that 20,000 more people can be accommodated without any rezones. They had no argument with that mathematical research; however, there are serious economically feasibility problems with the actual availability of such land, particularly with the parcel size of greater than one acre and close to the urban core. Much of this land has the proper medium density zoning, but is beyond its economical value to development because of the existing structures, undelineated wetlands or unbuildable terrain, unsuitable soil conditions, such as the Haddon School site, and public opposition. In short, if there were other parcels available for affordable communities, they would not be looking for a rezone on the East Broad Street parcel. The subject parcel meets their criteria for development of a successful residential project because of its infill location, access to schools needing students, close location to public transportation and walking distance to a wonderful commercial shopping area. Forty three homes within walking distance to Bag-N-Save may have been the deciding factor for them to continue business in their location. The property has all infrastructure close by and in quick response area from Police and Fire agencies. In conclusion, Mr. Keenan provided a slide presentation showing the vacant commercial properties that are for sale or for lease in a close radius of the subject site. Mr. Brown stated over the past 15 years regional retailers have been lost to the Kitsap Mall because population growth has boomed in central Kitsap and north Kitsap because regional circulation best serves the Silverdale area via SR-3. During that same time, Bremerton has seen a shift north along the Wheaton Way corridor to follow population density and be convenient to customers. As new centers are open, competition is created for those closer to downtown thus creating vacant space along the Wheaton Way corridor, i.e. Azteca, bag-N-Save, etc., all of which are moving from centers with excellent ingress and egress, signage and frontage. To further complicate the situation for existing businesses, population continues to move north. With the hub of jobs in PSNS and in the downtown on the south and residential populations in the north, Wheaton Way becomes a travel corridor from point "A" to point "B", more congested and less attractive to local consumers. Their position is that there is a vast and expanding vacancy of commercial along Wheaton Way and what is really needed is to turn around the tide of loss of residency and to shore up the businesses and commercial enterprises that already exist, not more commercial to compete with those that exist. The regional retailers can remain in Kitsap Mall and a healthy commercial center can exist in Bremerton only if we have a population base to sustain it. No one would argue that new industrial expansion is also essential to TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 27 of 30 create a healthy, diversified Bremerton, the only question then is where to locate it. He applauded the ongoing efforts to slate that kind of development along National Avenue and Werner Road corridors, which are excellent expansion potential and good regional circulation opportunities. These are two excellent points, which the subject site does not have. The thought that this was a good site for industrial expansion warrants consideration, but reality is it is not best suited for that use for reasons just stated. Emily Moshey, 1206 Park Avenue, stated her support of this proposal and felt it could only compliment what is being proposed for redevelopment of the downtown waterfront. Bob Mathwig, 8150 Chico Way - member of the Broadmoor Village Partnership, stated this was the first time he has ever down zoned a piece of property, but he felt it was important. He looks forward to continue cleaning up the area. He believes the best use of the site was residential due to it being a less desirable area for commercial. He felt strongly that Bremerton needed something to draw the population back within its borders to purchase homes. He pointed out entry-level homes fall within the $90-100,000 range and not considered real low income. He has been impressed with projects in that price range and if they are developed correctly they look good. 'He also agreed that bringing in additional population will be a positive influence on local business in the Wheaton Way corridor. Elizabeth Bue11, High Avenue, stated she agreed that the subject site was not best suited for a commercial use due to its location. A housing project may be fine, but she cautioned the City to be watchful about the width of the houses. James Robinson, 4904 Kitsap Way, stated he owns the rectangular piece of property directly north of the subject property. He purchased his property in 1971 and he agreed, in writing, at that time to annex into the City if and when, and he joined every petition to annex into the City until it was accomplished. The City has always determined the highest and best use of his property and that to the north and some to the east would be for commercial use. The subject property has been residential in the Comprehensive Plan until more recent versions. He is an advocate for property owners' rights within consistent and reasonable regulation. The proponents of this project have a viable proposal for the use of their property and have been very cooperative in affecting an orderly transition from and between their proposed residential zoning and his Commercial General zoning. Given that and the approval process in place, he believes they can coexist very nicely. Therefore, he concurs in their request and TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 28 of 30 respectfully asked the Council's Commission's recommendation. approval of the Planning David Smith, member of the Broadmoor Village partnership, reviewed the criteria for consideration of a Comprehensive Plan Amendment and requested change in zoning. He viewed the discussion between the developers of the subject site and Planning staff over whether or not the site should be retained as commercial or rezoned to residential as being very beneficial. He reminded Council of Arvon Village, a project that was approved two years ago and was somewhat of a pioneering effort both in the size of the lots and developing it in an older developed part of the City. This project has a little different consideration since it is zoned commercial and is desirous by some to see commercial uses developed. The central argument in the Partnership's point of view is that new residential population, who will purchase the homes, will become a part of the City and will be consumers interested in supporting the businesses. It does concern him to see more vacancies in commercial buildings growing and loss of businesses along the Wheaton Way corridor. One way to address this problem is to look at other communities and learn what they have done to reverse the exact trends that Bremerton is facing, such as Boise, Idaho, and Salem, Oregon. Those cities found that a serious effort had to be made to encourage homeownership and additional population as their own population shrank.' The Partnership's argument with staff was they would like to change the priorities a little, and the partnership's goals are the same as the Planning Department. The goal of adding additional residential owners is the most important goal, because it is the key to changing the others. This also shows the commitment to keeping the city vital with affordable housing. He has heard that this was one reason why Bremerton won out as a "Super Port", because of the affordable housing along with all the other amenities that are here. In conclusion, the concept of additional residential is where their argument is based, that by bringing a residential community into an area, which is suffering from vacancies, they are in effect, bringing in customers for the commercial. Mr. Colvin stated Mr. Brown's comments indicate that he and his company have confidence in the future of Bremerton, and he admires the group for investing in Bremerton. He inquired if Mr. Brown was aware of a letter from Mr. Barry, and if so, had he addressed his concerns? Mr. Brown stated that in the letter, Mr. Barry made a request to the City to address his concerns about stormwater and runoff, and he assured Council that these concerns were all studied and analyzed by Engineering professionals, and are all included in the Engineering package that was submitted with the application. Mr. Colvin then questioned the price range of the homes in the #0279 TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 29 of 30 proposed project, but Mr. Overson interjected that the issue before Council was the change in zoning for the property. Mr. Dawkins referred to the preliminary community sight plan, and questioned Mr. Brown if the center of the project was all open-space, and Mr. Overson again reminded Council that the issue before them was a change in zoning. Mr. Law stated he was enthused about the rezoning, but did have a concern with the time-frames of the project and wanted some clarification as to how the area will be accessed. Mr. Brown addressed the time-frame question, since that does pertain to the re-zone, and stated a plan for the site had to be developed and implemented in a one-year period from the date of the approval, or the approval would revert to the existing zoning. Mr. Overson wanted Council to realize that if this rezone was approved by them tonight, "Mr. Brown & Company" could quite possibly decide to sell this property to another company, who could then decide to build a 67-unit apartment on the property. It would be legal and within their rights. He wants Council to fully understand what they are deciding on, that this is a change in land use, and the change is long-term. Mr. Colvin asked the City Attorney for any remarks on those comments. Mr. 8ievers stated he agreed with Mr. Overson's comments, and that there is a lot more detail in the packet than is really before them for decision tonight. ME. Winters wanted it on record that he believes, with the direction the Comprehensive Plan is going and the need for medium density residential, that this re- zone is very appropriate, and agrees with the Planning Commission's recommendation. Mr. Jensen stated that in the conditions attached, the intent was to have a one-year window of opportunity for this developer, on this site. It was felt that the property was too valuable as commercial to leave it with nothing going on it. If they are going to build this project, they are going to do it now, or it is going to go back to commercial. He also clarified these conditions are on both the rezone and the Comprehensive Plan change to be consistent. Mr. Winters stated for clarification that in the event they don't build the project within a year, it would revert back to commercial zoning. Mr. Jensen stated yes, if they do not obtain right-of-way and building permits. He apologized for not putting this condition in the ordinance, but that it is listed under the Planning Commission's recommendations. M/S/C/U(Neville/Dawkins) to approve ordinance, on first reading, amending the Official Comprehensive Plan and Zoning maps of the City of Bremerton for property located at 1000 East Broad Street, TAPE #1308 City Council Reg. Mtg. Minutes August 16, 1995 Page 30 of 30 located at the west end of East Broad Street approximately 460 feet west of Wheaton Way in East Bremerton. (File #RZ-02-95). With no further business meeting adjourned at 8:50 P.M. KATHLEEN L~KEY, City Clerk ,~u'ncil President City of Bremerton KLM/SH-M/me cc: Normal Distribution File/Vault