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HomeMy WebLinkAbout01/28/98 TAPES #1520, 1521, 1522 CITY CO UCIL MEETING MINUTES JANUARY 28, 1998 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 January 28, 1998, at 5:30 P.M., with Council President David Farr presiding. Council members present were Jim Reed, Carlos Montgomery, Carol Arends, Mike Shepherd, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen. Also present were Assistant City Attorney Glenna Malanca and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Farr and invocation given by Reverend Janet Roberrs of the Central Kitsap Presbyterian Church. President Farr made the following announcements: (1) The Council held a Study Session prior to the Council meeting to discuss general Council business. (2) The City Council held a 10-minute Executive Session immediately prior to the City Council meeting to discuss "Personnel". (3) The City Council will hold a Study Session on February 2, 1998, 5:30 - 7:45 P.M in the Council Conference Room. Topics of discussion are: (1) Standard Code of Parliamentary Procedures & Review of City Council Polices and Procedures; (2)Bremerton Kitsap Access Television Equipment Order And Placement (2)Bremerton Kitsap Access Television Rules On Use And Access (4) The City Council will hold a Study Session on February 9, 1998, 5:30 - 7:20 P.M., in the Council Conference Room. Topics of discussion are Public Works and Utilities issues. Deputy City Clerk Paula Johnston announced Glenna Malanca, Acting City Attorney, had a statement that related to Agenda Item 11A. Glenna Malanca stated the appeal that is set forth in Agenda Item 11A will be stayed until the City acts on her recommendation, as the Interim City Attorney, to repeal Ordinance #4619, which amended the City's Shoreline Master Program relating to Docks/Piers on Oyster Bay Channel. The ordinance was adopted and its provisions appeared to be duplicative of Chapter 5 of the Shoreline Master Plan, specifically Regulation #10 at Water Access and Moorage portion of that plan. This regulation mandates that piers and docks are to be prohibited where navigation may be significantly impaired at entrances to bays, channels, or coves. In addition, the argument can be made that the procedural process TAPES #1520, 1521, , ,>22 City Council Reg. Mtg. Minutes January 28, 1998 Page 2 of 26 leading to the adoption of the ordinance could affect the enforceability of its provisions. She further recommended that an ordinance repealing Ordinance #4619 be introduced for first reading at the February 4, 1998, City council meeting. President Farr formally announced Item 11A would be pulled off the Agenda. CONSENT AGENDA A. Minutes of Meeting - January 14, 1998 #AB98-010 #0106 MISICIU(McConnell/Montgomery) Motion 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 #0128 MISICIU(Montgomery/Arends) On January 28, 1998, the Council does approve for payment those vouchers included and further described as follows: EFT4627, 216274 through 216276, 216286, 216318 through 216552, 216555, 216556 in the amount of $709,330.92. COUNCIL MEMBER REPORTS Mr. Reed expressed his gratitude for the "vote of confidence" several of his District #9 constituents gave him regarding his position on certain issues being addressed by the City Council. He thanked the citizens of the City and District #9 for their words of encouragement. Mrs. Arends reported water main work is underway on Montgomery Avenue, the intersection of Montgomery/Burwell and Montgomery/6th Street. Mr. Shepherd reported he held his first District #5 Neighborhood Meeting, which was well artended with active participation. Thoughtful and incisive questions were dealt with and the presentation by Mayor Horton was very informative and well received. Also discussed was the status of Evergreen Park, the Haddon site, and the improvements planned for both of those areas. Within the next two weeks he will be establishing a Web Page and E-mail address with hotlinks so that constituents and members of the public can communicate with him electronically. The next District #5 Neighborhood Meeting will be held in two months. TAPES #1520, 1521, . .~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 3 of 26 Mr. Overson noted City crews were removing trees, replanting new trees and making improvements to the sidewalk along 5th Street, which is part of a continuing program that will affect various parts of the City. Today, Kathleen McCluskey, Director of Administrative Services, conducted a beneficial meeting addressing the Naval Museum and its continuation. The next meeting on that issue will be held February 3. Mr. Olsen announced the next District #1 Neighborhood Meeting will be held on February 19, 1998, 7:00 P.M., at the Sheridan Park Community Center (Lounge). The guest speaker will be Mayor Lynn Horton, who will address the "State of the City" and Sinclair Landing Project. MAYOR'S REPORT Mayor Lynn Horton announced the Westsound Arts Council would like to bring a Dale Chihuly glassworks exhibit to Bremerton and are looking for additional support from the community. Additional information can be obtained by calling the Westsound Arts Council at 373-6531. She noted such an exhibit would bring people from all over the Puget Sound region to Bremerton; and would be worthy of receiving Motel/Motel Tax Funds, if available. Mayor Horton announced pursuant to City Policy 1-20-05, the following computer equipment is surplus to the City's needs and being made available to the public at no cost: 36 ea. PC's (NCR, Compaq, clones) either 286 or 386SX. Most are 9-10 years old. The PC's may or may not be in working order. 29 ea. PC Monitors (NCR, Compaq, other brands). Same vintage as PC's. Some are monochrome, some are color. Most work to some degree. 6 ea. Printers (dot matrix). Poor Print quality. To obtain information on this opportunity call Bill Eley at 478-5301. PUBLIC RECOGNITION Rob Schneidler, Admiral Theatre Foundation, extended congratulations to David Farr and Anna Laurie on their recent marriage. The Admiral Theatre is featuring Long John Baldry, an internationally known blues singer, on January 30, 1998. General and dinner seating are available. On February 7, 1998, the Admiral Theatre is featuring Dean Regan in "A Closer Walk With Patsy Cline". Elizabeth Buell complimented the City Council on the framing and display of the USS Missouri under fire print that was donated by Bob Sauter. If anyone is interested in obtaining a print, Mr. Sauter has five more at a cost of $100.00 each. TAPES #1520, 1521, . ,~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 4 of 26 8A- ECONOMIC DEVELOPMENT PLAN CONTRACT, #AB98-011 Information, which was presented at the November 5, 1997 and January 5, 1998, City Council Study Sessions concerning development of an Economic Development Plan, is attached. The City is interested in promoting utilization of the Community Reinvestment Act of 1997, which stresses the responsibility of financial institutions to respond to the needs of the local community, and other tools to enhance economic development in the City of Bremerton. Request authorization to contract with George Parker, a consultant with 20-years of experience working with communities relating to economic development issues, to develop an economic development plan. Mr. Parker would research the specific financial needs of small businesses, the resources that are currently available, and the gaps between the needs and the resources and subsequently develop a five-year strategic plan and one year action plan to address the gaps. Debbie Peavler-Stewart, Department of Community Development, pointed out this issue was before Council at two Study Sessions. Virgil Elkington, Bremerton resident, asked how much money was available and how could someone obtain it? Ms. Peavler-Stewart explained the proposal is to develop a plan to look at the needs of small businesses within the community and identify those needs, such as start up money, technical assistance, etc. The next step would be to work with banks, profit, and non-profit organizations to address those needs. Mr. Elkington asked again how much money was available? Ms. Peavler-Steward stated none at this time; the proposal is to develop a plan. #0622 MISIC(Montgomery/Law) Motion to authorize execution of a $15,000 contract between the City and George Parker. Funds will be budgeted from housing loan repayments. Vote on motion: In Favor: Reed, Montgomery, Arends, Shepherd, Farr, Law, McConnell, Olsen Opposed: Overson Motion carried. 8B - SINCLAIR LANDING MASTER DEVELOPMENT AGREEMENT, #AB980012 Pursuant to a Memorandum of Understanding executed in February of 1997, and amended in April of 1997, the City has negotiated the initial structuring of the development, construction and the City's participation in the integrated redevelopmerit of portions of the central waterfront of downtown Bremerton. The TAPES #1520, 1521, .,~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 5 of 26 project is commonly known as the Sinclair Landing Project and is based upon the combined efforts of the Commercial Group, LLC, as Master Developer; the City of Bremerton, Kitsap Transit, Sinclair Landing Association, Port of Bremerton and the County. There will be public and private features including major retail stores, restaurants, hotel, public parking garage, and waterfront park. A major component of the Master Development Agreement is the construction of the 2,400 stall-parking garage and other public amenities. Construction of these facilities will be accomplished by the Master Developer, and will become the property of the City of Bremerton upon completion. The purchase price to be paid by the City of Bremerton is based upon a formula involving the net parking revenues and increase in taxes generated within the project over a 25-year period. The structuring of the purchase is subject to the approval of Bond Counsel, who is in the process of reviewing the purchase provisions. Mayor Lynn Horton stated this document has been a very long time coming, but it is now a document that the majority of the parties can agree on. Kitsap Transit has spent a great deal of time on their issue that relates to the Bremerton Transportation Center. Kitsap Transit will be reviewing the proposed agreement at their next board meeting on February 4, 1998, to address ratification as it pertains to the transit elements. Today, she received a letter from Commissioner Phil Best stating that Kitsap County will not be a signator primarily because at this point they have no responsibilities articulated in the document. However, Commissioner Best indicated that Kitsap County is supportive of the Sinclair Landing Project and if, in the future, there is some role for the County, they would be happy to work with the City to determine what that potential role for support might be. The other entities signing the agreement are Kitsap Transit and the Sinclair Landing Association. Mayor Horton explained how the City and Kitsap Transit worked with the Commercial Group on their respective elements in developing the subject agreement. She emphasized what is proposed is not a perfect document, but it is a good development agreement for the City of Bremerton and one of the overriding issues in negotiation was how does the City limit or ideally have no risk in this project. The City's risk is primarily with the 2,400 unit-parking garage that will be underpinnings of the development. This agreement articulates the financial formula that involves the City and at the end of the 25-years all of the revenue generated from the parking garage and the formula will go to the City. The City will own the parking structure upon its completion. What the City is agreeing to is 60% of the incremental taxation that comes from the Sinclair Landing Project site will go toward the purchase price of the garage. The net parking revenues from the garage will also go toward the purchase price. The cost of the parking garage is estimated, with property acquisition, design, and construction, somewhere in the order of $60 million dollars. As a comparison, the City of Seattle's public/private project with Nordstrom is somewhere in the area of 800 parking stalls at a cost of $50 million TAPES #1520, 1521, .522 City Council Reg. Mtg. Minutes January 28, 1998 Page 6 of 26 dollars. At the end of 25 years, on an annual basis, the City estimates that the incremental taxation coming to the City will be somewhere around $2 million dollars. Based on that proforma, $1.2 million will go toward the purchase price and the extra $800,000 will go into the City's General Fund. Multiplying 25-years X $1.2 million comes up to approximately $28 million. She feels strongly that the City has struck a "good financial deal". Mayor Horton acknowledged the City Council has several concerns, one of which is the "Letter of Agreement". Language in the proposed agreement, at this point, states that the City will provide a guarantee, such as a "letter of credit". She believes when the final analysis is complete and the City's Bond Counsel has advised the City, some other financing mechanism may be used. She emphasized this document will get the City to the next set of detailed documents. If Council members are looking for all of the details in the proposed document, they will not find it. She will bring back the level of detail at various time frames, i.e. six months from now when the Commercial Group obtains their Letter of Equity for financing, etc. Another area of Council concern was the termination rights in the event the Commercial Group does not perform. There is an additional paragraph that states: "Notwithstanding any other provisions of this paragraph E, if pursuant to the terms of Bremerton Municipal Code 721.02.520, the Preliminary P.U.D approval is terminated prior to the City .qrantin.q a final P.UD. approval or if the final P.U.D. approval is terminated, in either case because the Master Developer has failed to meet the proiect deadlines established by such section of the code, for any reason, whether or not within the control of the Master Developer or otherwise excused, all of the Master Developer's riqhts to the P.U.D. and project permits and all of the Master Developer ri.qhts and obli.qations under this agreement, other than those relating to the Commuter Retail building may be terminated, revoked or canceled by mutual a.qreement of the other parties hereto. In such event such riahts will be transferred to the City." She believes that language gives the City additional termination timeframes and rights. She noted the City also has those rights under the P.U.D. process; however, they are to be articulated in this document. The issue of amenities is another concern voiced by some members of the City council. She has been asked why mention "amenities" in this agreement. The reasons are: (a) the developer wants them in as much as the City wants them included; (b) if amenities are not discussed, then it gives the appearance that they are not important to the project. Mayor Horton stressed the amenities are important, but the City will not know what they will be until preliminary designs are produced. Language in the subject document states that by mutual consent between the Commercial Group and the City of Bremerton, there will be joint agreement on the amenities. That level of detail will be forwarded to the City council in future documents. Mayor Horton received a letter from a Diamond Parking Inc., representative, expressing his belief that the proposed agreement is TAPES #1520, 1521, ,~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 7 of 26 a good deal for the City of Bremerton. The goal of the proposed agreement is that the City is put into a position of little or ideally no risk. She believes that goal is being met and other than giving a guarantee for incremental taxation, the City is not promising full faith and credit in any regard to this project, only guaranteeing 60% of the revenue stream plus the net parking revenues to pay for the parking structure. Rich Rucker, Partner Commercial Group, stated there is an age-old adage in real estate... location, location, location. He believes Sinclair Landing Project is location. timing, and perseverance. He questioned where can you find a developable urban piece of real estate of significant size with 1400 lineal feet of waterfront next to a ferry terminal that brings 2 million people, combined passenger and ferry, per year? Other ferry locations in the State of Washington do not have what Bremerton has in terms of its ability to develop. In other words, we have no competition for our proposed destination location. We have the opportunity to create this destination location with public amenities added to the existing public amenities, starting with the boardwalk. The City has created this opportunity with the road improvement project, the boardwalk, and the ongoing efforts by the City to affect this public/private partnership over the past two years. In his travels promoting the Sinclair landing project and talking to users, investors, and funding sources, he has come up with a phrase that this is a "fabulous piece of real estate". All of the people that he has introduced to this project agree. The second part is timing. Bremerton Transportation Center (BCT) is about to get underway through the efforts of Richard Hayes, Executive Director Kitsap Transit. The Washington State Ferry System will be providing new ferry docks, terminal, and a state of the art Transit Center, which he has always considered to be Phase I of the development. In April 1998, Bremerton will be getting a new fast passenger-only ferry. He firmly believes that when people ride that new ferry between Seattle and Bremerton they will believe in Bremerton. The Seattle market is on fire and the five hottest cities in the nation are Las Vegas, Boston, Denver, Orlando, and Seattle; and Bremerton benefits from Seattle. The idea has always been to appeal to the Seattle market. He read recently that Pierce County had 37,000 new jobs planned by the year 2001. When consultants from the outlet industry visited this area, they commented that one million people in Pierce County would come to the outlet component through the road system, not the ferry system. Two years ago he could not have gotten a retailer, user, tenant, or lender to consider coming into an urban area because they wanted to be in the suburbs. Retail centers in downtowns are becoming strong across the United States. include the City of Seattle. The outlet business has been down the last few years; however, recently there has been a resurgence, and there are only nine new projects currently being TAPES #1520, 1521, ~022 City Council Reg. Mtg. Minutes January 28, 1998 Page 8 of 26 planned across the United States. Tenants are very interested in the Seattle markets and there is no high-end outlet development planned for the northwest, so the timing for an outlet component in Bremerton is perfect. He pointed out the build out of Silverdale and the lack of land for expansion of that business area. If users are interested in the Kitsap County market, there are few places for them to locate other than Sinclair Landing. Availability of financing, from a timing standpoint, in general is looking at real estate. The fact that the stock market has kind of languished, the lenders he talked with consider the Sinclair Landing Project of great interest because of its size, its location in the northwest, and will consist of mixed uses. In regard to the perseverance of the Sinclair Landing Project, there are many positive signs even though it will be a complex project. He emphasized the importance of working together and sticking together. The recent loss of 75,000 square feet of Navy leased space reminds us of the difficulty we face. In the three years of molding the Sinclair Landing development program, he has heard comments from local Kitsap County people questioning "why are you doing this" to "how is it going" and most recently "your right, Sinclair Landing is going to happen". One of his most difficult tasks to date has been overcoming our own community's lack of confidence in Bremerton. The Commercial Group is committed to building their first building, the Commuter Retail building, and having it open by December 1998. Any delays, even a week, potentially jeopardizes that event. He proposed burying forever the thought "it won't work in Bremerton". He further proposes that Council considers approving the Master Development Agreement and working together as partners in meeting the market place. Richard Haves, Executive Director Kitsap Transit, stated Kitsap Transit has worked extensively with the Commercial Group over the last 3-4 weeks and he believes the transit elements of the package are very favorable to the community. Their efforts focus on purchasing perpetual pedestrian easements through the entire development, perpetual access to kiss-and-ride locations, and perpetual maintenance and security for those areas, which will cost a substantial amount, but it will be appraisal based. The development program and the review process by the agencies and Sinclair Landing Association remains essentially the same as it has always been and they are asking, at this moment, that the design review process be commissioned to start along side the substantial Shoreline Development process. As of a week ago, they resubmitted the SSDP application on the Transit System's behalf for the BCT portion of the project. Kitsap Transit also feels that delays are a serious problem and every month costs the Transit System approximately $10,000, which can cause the building to shrink in size. TAPES #1520, 1521, , ,~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 9 of 26 He believes the interagency coordination is nearly finished. There is a Memorandum of Understanding with the Washington State Ferry System and the other governmental entities. He would like to see this process move forward as quickly as possible. Transit is anxious to deliver the pad for the Transportation Center to the Commercial Group so that construction can start the minute the "fish window" opens. Gary Gartin, President of Sinclair Landing Association (SLA), stated his board is scheduled to meet on February 6, 1998, to discuss the subject agreement. They have been actively involved in its development, and he acknowledged the admirable efforts of Mayor Horton and the developers in working through this process. He noted downtown is in a very unique situation with a high tech factory facility, fast passenger only ferries coming in as well as car/passenger ferries, office users, retail users and more to come with this project. One of the things that drives this project and creates the problems identified by the Mayor is that there must be a major parking garage to support this kind of project. SLA has been very concerned about how to put time limits on the project and language has been included that will put some "caps" on the process as identified under the Bremerton Municipal Code. Over the last several days, there has been a variety of changes in the document that they have not reviewed and there still may be some questions by the time of the SLA Board's February 6th meeting. They also hope that in a very short time frame all this can be done and the developers and Kitsap County can get working on the project. Mayor Horton announced several exhibits were available to handout to Council, including a large map provided by Kitsap Transit, which will be part of the attachments. Richard Hayes, Director of Kitsap Transit, stated this map speaks to the boundaries of the transportation Center project and ultimate ownership and easements. It is also a very crucial part of the Memorandum of Understanding Agreement with the Washington State Ferry System because the State Department of Transportation has very strict rules about disposing of, swapping or buying State right-of-way. Mr. Law thanked Mayor Horton for answering several questions he posed to her early today. Like everyone else, he wants to see the proposed development completed so that the increased tax base can raise the living standards for everyone in Bremerton. In reviewing the document, he could not find the changes that Council requested a week ago incorporated into the document that was provided in the Agenda packet, nor were there any attachments. He was concerned that Council did not have an opportunity to review them nor did it give the public the opportunity to review them in order to give input. He respects the public's judgement and he was interested in having educated input from the public. The proposition being presented to Council is probably the greatest TAPES #1520, 1521, . -~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 10 of 26 financial obligation that any Bremerton elected official has ever faced. The Mayor is to be commended for the amount of effort she has put into this project. Later, he will ask the Council to delay voting on this item. He also had additional questions about any changes to the language addressing a "letter of credit" and preferred delaying Council action until it can be presented in a more final form. He raised the following questions: (1) What is the exit strategy should there be a default, and who is obligated for what? He needs to see to see more guarantees that the City will not be liable for the $70 million. He noted the Commercial Group signs off with LLD, which means limited liability, so it is just the amount they have invested. It is his understanding that the only control the City will have is the building permitting per zones. (2) SLA relationship - what will the City receive for the $1000.00 per month contribution for one year; and what will the City receive for the $500.00 per month the following year? (3) Is SLA managing or advising? Mr. Reed thanked Mayor Horton, Mr. Rucker, Mr. Hayes, SLA Board, and Port of Bremerton for venturing into this project with the City. On the big picture he is very supportive and that it is a great endeavor. He understands all of the prior speakers' points. He is not concerned about what the City will be paying as a City, but what it is getting in return. He also has concern over some liability issues. He agreed with Mr. Law that it is difficult to sit and listen and then sign up to the largest financial project in the City's history that he is aware of and not even have time to study the information that has been handed to the Council. He was not sure if a small delay would affect the project as drastically as one might presume. Mr. McConnell stated it appears that the Roosevelt Field Fund will go away as soon as the parking garage is constructed; however, he would like to see that fund continue. The new language put into the agreement addressing the "line of credit" did not alleviate his fears about what the City was obligating itself for under that term. He also noted the agreement did not specifically state the number of parking stalls to be built for the identified cost. He calculated that the cost of the garage would be greater than $28 million, if the developer also gets the net revenue from the parking stalls over a 25-year period. He could support that cost as long as the City does not have the liability to "pick up the tab", if the developer defaults. Mr. Montgomery stated he has heard all the critics in the City; however, there is only one developer stepping forward. He questioned where are all the experts and who are they coming up for a developer? Who, in the public, has a better idea than what is proposed? A member of the public told him that the City should wait until the new ferries are in place and bringing people from Seattle to Bremerton to build up the waterfront. He questioned how many of us would be TAPES #1520, 1521, ,.~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 11 of 26 around when something like that happens? He emphasized this project needs to happen now, it will not fail because its time has come. Mr. Overson asked for an explanation why there was any discussion of guarantees or "letter of credit" in the document? Because the City promised the developer sufficient income off of the sale of the garage, there should not be any need to mention any "letter of credit". In his opinion, the second part of Paragraph D3 is different than the guarantee identified in the first part of that paragraph. Mr. Shepherd stated when he ran for office there was a public concern that the change in Council could serious affect the progress of the Sinclair Landing development. Not taking such charges lightly, he studied historical Sinclair Landing documents, the current information, and personally talked with several members of the Sinclair Land Association and City staff. His two remaining questions are: (1) language requiring activity by the Sinclair Landing Association; (2) the exact nature of the subject document...whether it is a contract to perform or a framework to progress to an actual contract. He noted Mayor Horton previously answered question #(1). He emphasized he would not delay the Sinclair Landing development unless there was good cause. President Farr asked the following questions: (1) Time limits established for performance by the P.U.D. (time limits on when progression has to take place). (2) What would be the fallacy of adding a specific minimum dollar amount for the amenities? (3) Any impact on this project if Council delayed 1-2 weeks before taking formal action on this item at this time? (4) More specific comments from Mr. Gratin, who represents Sinclair Landing Association, about their concerns. In addition, whether or not he was satisfied with the milestones that will be in the P.U.D.? (5) Paragraph 11A says 90 days from signing developer will provide a list of features and recommendations - Questions: is there any possibility of adding language to state that if after 90 days from signing this agreement information is not forthcoming that it can be a milestone rather than just pushing it off into the future? Mr. Reed stated he might be misinterpreting the subject agreement as to its scope and intent. However, he questioned if it is not a continuous binding contract, at what point does it become null or non-enforceable because a new agreement has taken its place? Mr. Montgomery stated it was his observation that Exhibit B showed a P.U.D. boundary that was different from what was previously presented. It was his understanding that it only went down 4th Street from Pacific Avenue to Park Avenue. TAPES #1520, 1521, , ,~22 City Council Rag. Mtg. Minutes January 28, 1998 Page 12 of 26 Virgin Elkington, Bremerton resident, stated he would soon open two businesses on Burwell Street, which he financed himself. Just recently, he learned that the area (buildings) where his two businesses are located have been marked for termination as part of the Sinclair Landing Project. He did not like that situation considering the fact that he obtained his own financing and now must compete against the city. He wanted to know if his area is eliminated, how will the City go against recalcitrant business owners like him or people that own property in the development area that do not want to sell out? He agreed with Councilman Law that this agreement was being rammed through without giving the public the opportunity to study the documents. TAPE #1521 Mr. Shepherd asked Mr. Rucker to explain, at the time the questions are answered, the intention for businesses that are going to be addressed and incorporated into the master development. He was excited about Mr. Elkington opening a Bagel Factory in Bremerton. Ross Allanson, City Manager/Diamond Parking Inc., thanked Mayor Horton, Randy McGreal, and Rich Rucker for their hard work on this project. About 2 % years ago he came to Bremerton to work for Diamond Parking and was very excited to get in on the ground floor of the project. When he shared news about the project with John Diamond his comment was that Bremerton had been trying since 1972 to get redevelopment underway and to let him know when the bulldozers show up. Mr. Allanson acknowledged the difficult negotiations to get to this point and he believes it is a great document for the City in that it lays out a framework that is a "win-win" situation through parthating with a developer that will be taking the majority of the risk. His interpretation of the "letter of credit" addressed in the agreement is just telling a bank that 10-15 years from now the City would not have changed the rules or reassigned the revenues. Amie Morrison, Deputy District Director for Congressman Norm Dicks, read the following letter into the record: "Dear Mayor Horton and City Council Members, I apologize that I am unable to join you this evening to discuss the future of Sinclair Landing. However, as you know we have just begun the second part of the 105th Congressional Session. I have always been supportive of the revitalization of downtown Bremerton. I have worked with many of you to make the Admiral Theatre and multimodel transportation center in Bremerton a reality. The Sinclair Landing project also has my complete support. My parents speak often of the days when Bremerton was a thriving, growing community, which can be our reality if we diversify our local economy. Tonight we can agree that the success of the Sinclair Landing project is essential to Bremerton's future. Best of luck to you this evening. Sincerely Norm Dicks". TAPES #1520, 1521, io22 City Council Reg. Mtg. Minutes January 28, 1998 Page 13 of 26 Steve Anderson, Executive Assistant to the Puget Sound Shipyard Commander, stated he would comment on two aspects of the proposed project that are very positive. In making those comments, he had also spoken with the Naval Base Seattle staff, Admiral Centers staff, who have additional comments to pass onto the City. First of all, this is very positive for the Navy's quality of life for the sailors; something that has suffered greatly in Bremerton as the downtown has turned into its current state. The only place to go in Kitsap County is outside of Bremerton or Silverdale. This project provides an opportunity to provide quality entertainment and establishments for sailors as well as their civilian workforce (9,000) in the downtown area, i.e., restaurants, shopping opportunities, etc. Secondly, this plan plays very well into the desire of the Shipyard to continue to turn itself into a facility that looks better from the outside. You have seen that in the development at the west end of the Shipyard (new parking garage and decorative fenced area). This plan gives the Navy the opportunity to build a new fence line in downtown Bremerton, the ability to put up something that meets their security requirements but is more attractive than a chain link fence. The exact design for that fencing is not known at this time, but it will be different than that used at the west end of the Shipyard. It pleased him to announced that arrangements have been made so that the small parcel of land, about 6/10 of an acre, and the building that houses the shipyard Police Department can be turned over at no fee. Rob Schneidler, Chairman of the Economic Development Council of Kitsap County (EDC), stated the City has already approved the Preliminary P.U.D. and in that P.U.D. the size of the project has been defined, including the size of the proposed garage. As much as everyone would like someone like Paul Allen to throw around a couple of checks and start construction tomorrow. The Master Development Agreement represents the greatest opportunity for the renovation of the central business district since WWII. The Master Development Agreement, which involves the Sinclair Landing project and the Bremerton Transportation Center, creates the public/private partnership where public has more input and a stronger voice than a standard private development process. This project meets the EDC's goals for creating economic vitality. It shares the tax burden and it is projected the City of Bremerton will receive $800,000 annually in new tax revenue once the Sinclair Landing project is open. It creates family wage jobs through clean industry. The Sinclair Landing project will create 2,000 new permanent jobs and during construction will create 300 family wage jobs in Bremerton. It will be a catalyst to further development and revitalization of Bremerton. Therefore, on the basis that this agreement meets the general goals of the EDC, he encouraged Council's endorsement of the Commercial Group and the Master Development Agreement to develop Sinclair Landing and the Transportation Center. Finally, while this decision is the greatest dollar decision this City Council may make, fortunately it does not involve City dollars. TAPES #1520, 1521, .022 City Council Reg. Mtg. Minutes January 28, 1998 Page 14 of 26 Unfortunately, it may be our last chance to make a decision. He encouraged a positive vote approving the subject document at this time.. Jim Hamner, President Bremerton Area Changer of Commerce, stated his purpose for being before the council was to urge their timely approval of the Master Development Agreement. He stressed it is crucial to existing businesses in the Bremerton area and also to the efforts of the EDC and other organizations trying to attract new business to this area. He concurred with Councilman Montgomery that we need to get moving on this project. His prior experience as a financial advisory and an officer in a corporation that had sales in the amount of $800 million, involved approving capital expenditures in the millions of dollars. In both those situations, people wanted a perfect situation without any risk, but there are no perfect deals. He believes the City Council is responsible to find a way to approve this project, minimize the risk, and get on with the task. Grant Alexander, Secretary Olympic Peninsula Building and Construction Trade Council, stated the organization he represents has been housed in Kitsap County for a great number of years and represents approximately 16 trade unions and over 1,000 members. As a life long resident of Kitsap County, he has viewed the ups and downs Bremerton has faced in trying to revitalize the downtown. He encouraged Council to move forward with this project. The Union Trust Funds are very interested in this project and are working closely with the Commercial Group to put together packages that will be suitable for the needs of this project. Gerry Gossett-Paret, Bremerton resident, stated she supports Sinclair Landing. Bremerton awakened and roused to its early glory during the war years. We bought War Bonds, urged on by visiting starlets and dignitaries. Now, we are again afforded the opportunity to buy "War Bonds" to fight the decay and indolence of a tired City; down on its luck, empty buildings, eroded tax base and stiff competition by our surrounding neighborhoods. We can buy into Sinclair Landing. It too will be an investment that bears big dividends. We'll never see the Bremerton that many of the major landholders knew as youngsters. Those days are gone forever. We do have the chance to grab the brass ring of innovative thinking and harness the energies of young men. who have better ideas than anyone else has been able to produce to date. We can pick this project to a slow miserable and painful death or we can quit our griping and get on with a positive cooperative approach to eradicate 40 years of decline. The time has arrived to put an end to the grandstanding and divisiveness. Let's get on to the big issue. Opportunity is knocking...will we open the door? Grant Griffin, Executive Director, Kitsap Peninsular Visitor & Convention Bureau (KPVCB), provided a letter from the President of his organization in support of the Sinclair Landing effort. Mr. Griffin stressed the importance of tourism to the Bremerton area and if the project is completed, it will add significantly to the tax TAPES #1520, 1521, ~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 15 of 26 base. Over one half of the tax money collected in tourism in the County is accumulated from accommodations, restaurants and retail expenditures. In addition, that half represents in the County level very close to $150 million per year. This project would give the KPVCB an additional tool to sell to the Seattle or tri-county market (Snohomish/King/Pierce Counties). He emphasized his organization is focusing advertising dollars in those areas to attract people over to this area. Elizabeth Buell, Bremerton resident, asked where is all the money coming from and will the City go back to the taxpayers for more money? Joe Mentor, Developer, stated in his brief review of the Master Development Agreement he found it to be a complicated agreement. He questioned who is the Master Developer... is it an individual, corporation, etc.? He questioned the requirement for a Collateral Agreement along with the subject agreement? He does not believe a parking garage should be built on the west side of Washington Avenue. He envisioned a 2,400 parking stall garage as being larger and more imposing that the Navy's garage on Callow Avenue. He also believes it will create a traffic-congested area when people use the parking garage. He questioned why doesn't the City build the garage itself and put it out to bid. In regard to the "kiss-and-ride" drop off, at first it was to be located at 2nd Street and Pacific Avenue, but was moved to 2nd Street and Washington Avenue; however the agreement states it can be within 300 yards, which places it closer to 4th Street. He believes the Bremerton Transportation Center should be built for the public's use, not just those that ride the buses. And, it should be under the control of the City of Bremerton, not turned over to the Transit Authority. He was not sure if the Port of Bremerton was part of this agreement; however, the agreement calls for the Port to turn over their facilities to be managed and operated by the Master Developer. He also did not understand the meaning of the "letter of credit" and if it was taken out of the agreement how it would affect the developer's ability to obtain financing. He pointed out Exhibit D was referenced in the agreement, but was not attached. Per the agreement, Kitsap Transit is to pay the developer $600,000 for easements. He did not understand why Transit would pay the developer that amount of money. It appears that the Master Developer will manage the parking garage forever since there is no termination period identified. He believes the City should manage the garage themselves. He questioned who is paying for lost revenue if the garage doesn't pay out? He recommended the City Council have the City Attorney review the agreement to determine the advantages and disadvantages for the City. President Farr pointed out for the public's benefit, the City Council has met on a regular basis for Study Sessions that were open to the public, and Executive Sessions that were not open to the public, to discuss this agreement and other drafts going on for months into years. This agreement is something that the TAPES #1520, 1521, ic~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 16 of 26 Council members have seen before and at the conclusion of an Executive Session last week, a very small number of items were left to be resolved or answered. The document lists eight Exhibits, many of which have been available to Council for review for quite some time. He stressed the City Council takes this issue very seriously and advised the Administration to bring the agreement back to them when it was in a form that was more complete and in line with what the City wanted, not in bits and pieces. He personally respects the efforts of the Sinclair Landing Board of Directors and he has shared some of his concorns over the agreement with them. He expects most of those concerns will be addressed later in this meeting. Mr. Law pointed out Mr. Allanson, representing Diamond parking, made a comment that would replace using the words "line of credit", and instead provide a guarantee of the tax monies. Mayor Horton stressed the fact that the agreement already states the purchase price and timeframe of the "letter of credit", if one was used. Mr. Law stated he would like the opinion of a financial expert or unbiased attorney that the language states the City is only obligated to pay the difference in taxes and not going to be hit with a bill for $50-60 million for the garage. Mr. Reed thanked the professional articulate input from the citizens, which he found to be very enlightening. He agreed with Mr. McConnell that with a few refinements to the agreement it could be approved by the City Council. He believes part of the 40-year decline in the City of Bremerton was because some bad decisions were made. This Council is trying to make an enlightened, educated, and professional decision. Ms. Malanca stated she would respond to the question whether or not this is a contract and if it is, why isn't there more in it at this point in time. She equated it to an intent to enter into a lease. We have an agreement to agree on occasions - a framework that does not stand alone. We sign the intent to enter into a lease. We are obligated and that is a contract, but again it does not stand alone and it is not until you enter into the lease with all the details. She emphasized there will be some overlapping with the Master Development Agreement because it does not stand alone and more contracts will be coming before the City Council for approval that will fill in all of those details. This is a "first step" and a framework, but what comes after will be subject to Council approval, except for some of the more minor approvals that are set forth in the plan before Council at this time. Mr. Hayes handed out a document and explained it speaks to several questions raised by Mr. Mentor. A question was raised "why is the Transit System involved in this project"? In response, there are two reasons: (1) It was the Transit System and the City, specifically he and Don Pratt, former Community TAPES #1520, 1521, ,722 City Council Reg. Mtg. Minutes January 28, 1998 Page 17 of 26 Development Director, who put the RFP together. (2) The Transit System raised almost $20 million in grant funds to put the Bremerton Transportation Center together, and they have a pretty substantial responsibility to ensure that the money is spent wisely and for the intended purpose. That speaks to why the Bremerton Transit Center (BCT) is on Transit and demand management because that is the kind of money transit systems are suppose to get and can obtain. In most cases, the arrangements they have made would in fact be arrangements required by the funding sources. In answer to the question why transit, there are court cases going on at this time where major mall developers have refused access to transit buses and transit patrons in mall style developments. This development will have some of those same legal characteristics in terms of some pieces that we might think of as public property now going into private ownership as part payment. Kitsap Transit is insuring that at all times even if it is sold to another party, transit patrons will have easy and high quality access through this development. Their anticipations are that these easements, particularly because they contain professional maintenance and security, will have a value far in excess of what they have proposed for payment. In addition, there are protections for the Transit System at every step in the payment process, including their winding up with the partial P.U.D. rights to the Commuter Retail Building, if the developer does not go forward with construction. He and the Transit system's attorney believe the Transit System is well protected in regard to the subject easements. One of the court cases is in Vancouver, Washington between the local transit system and a major Mall. In regard to the location of the "kiss-and-ride" drop off point, the policy basis is that the bus passengers should have preference. They looked at a site in the vicinity Of 2nd and Washington and the 300 yards from the terminal essentially draws a line from the door of the terminal around that just about coincides with the distance that 2nd and Washington is away from the terminal. They have also proposed that it be a level walk and to the extent possible covered. In addition, there will be access for the disabled to the lower level where their own Access buses pick up and drop off passengers. That area will be managed because it could be easily abused. In regard to the review process for the development program, the 90-day period for them to bring forward their entire program will speak to the configuration of the minimum of 300,000 square feet of commercial and retail space, plazas, view corridors, etc., that the easements are over. He believes all of the parties are well protected in those areas as well. He gave his assurance that process will work the way it is suppose to, which should also include design review, TAPES #1520, 1521, .022 City Council Reg. Mtg. Minutes January 28, 1998 Page 18 of 26 The role of Sinclair Landing Association will be reduced substantially and makes it more advisory. SLA's lenders are asking, if not requiring, the same reduced status as is being proposed in the subject agreement. Mr. McConnell referenced the section of the agreement addressing "kiss-and- ride" under protections and conditions #2 Alternative site west portion of PSNS purchase available in the event of default. He questioned what default? Mr. Hayes stated if TCG defaults even in the short run they have a parcel that Transit will own where they could locate a good quality "kiss-and-ride", which also meets the 300 yards requirement. Mr. Law stated the P.U.D. for the Transportation Center comes under the Transit System right-a-way and the P.U.D. for the entire project goes to Kitsap Transit in the event of the agreement default. He asked for clarification of the P.U.D. Mr. Hayes stated it is the rights to a particular version of development. Actually, it could also come to the City. What he and Mr. Pratt were trying to assure themselves was that their easement rights did not expire in the event this particular development project failed because money would have been spent on them. Mr. Law asked if there was any reason why that P.U.D. could not be under the City of Bremerton? Mayor Horton stated Mr. McGreal would be handing out language to the City Council stating that it would go to the City and that the City could hand off portions of the P.U.D. to Kitsap Transit. She felt strongly that the City should be the master holder of the P.U.D. in a default. Mr. Reed acknowledged that the Iooseness of the language does not specifically define the amenities the City will be getting. And, the financial guarantee of the parking funds is understandable, but why is it being guaranteed by a "letter of credit". He assumed that concern would be addressed soon. The scope and intent of the agreement is clearer after Ms. Malanca's explanation; however, he questioned if the agreement becomes null and void due to the acceptance of a new agreement? Ms. Malanca explained pads of the agreement could survive and depends on what specifics come in following agreements. What is not replaced could survive to the end of the project. Mr. Reed stated if his and his fellow Council members' concerns can be answered during this meeting, he could support approving this item now and not delay making a decision. ' Randy McGreal, member of the Commercial Group, stated in response to Council President Farr's question regarding time limits to TCG's performance, a new Paragraph 5 will be added to Section VIII as follows: "Notwithstanding any other provisions of this Paragraph E, if pursuant to the terms of Bremerton Municipal Code 21.02.520, the Preliminary P.U.D. approval is terminated prior to the City Granting a Final P.U.D. approval or if the Final P.U.D. approval is terminated, in either case because the Master Developer has failed to meet the proiect deadlines established by such section of the Code, for any reason, TAPES #1520, 1521, ~522 City Council Reg. Mtg. Minutes January 28, 1998 Page 19 of 26 whether or not within the control of Master Developer or otherwise excused, all of Master Developer's rights to the P.UD. and project permits and all of the Master Developer's rights and obligations under this Agreement, other than those relating to the Commuter Retail Building, may be terminated, revoked, or canceled by mutual agreement of the other parties hereto. In such event such riqhts shall be transferred to the City." Mr. McGreal quoted from BMC 721.02.520 where it states an applicant has two years from the time that the P.U.D. is issued. The P.U.D. for this project was issued in April of 1997, so the Preliminary P.U.D. will expire April 1999. At that time, if the applicant has made substantial progress, but not prepared to submit a final plan, the applicant can come before the City Council and ask for a one time one-year extension. The intent of the 2-year Preliminary P.U.D. is to give the applicant time to prepare plans and drawings, submit them to the City, and proceed through the process to obtain Building Permits and begin construction. That second step is called the Final Plan P.U.D. The applicant has two years once the Final Plan is submitted to the Planning Department to begin construction. Again, if the applicant has not begun construction within that 2-year period, the applicant can come before the City Council and request a one time 1-year extension. He emphasized those are the time limits that constrain the Commercial Group. Mr. Montgomery questioned if he understood correctly that the applicant would have two 2-year periods? Mr. McGreal stated for a large project it takes about that long to develop plans and documentation to submit for final Building Permits. A project of this size may take the City 6-9 months to review the plans and then start and stage construction. He believes the B.M.C. is written to give the developer about a year's grace period to start the construction. Mr. McGreal stated in answer to Mr. Reed's questions about the character of this initial agreement, which the City Attorney described as a "framework agreement", the next agreement is an Implementation Agreement. That agreement has the detail information about the "letter of credit", if required. This series of agreement is set up to allow them, over the next 90 days, to develop a development program and then come back to the Sinclair Landing Association for their review and 30 days come before the City Council for review. At that time, elements of the project will be refined, particularly the public amenities, cost of the parking garage and public amenities, and further refine estimates of tax revenue increases. This is negotiation where representatives of the City, financial lender, Commercial Group, and Construction Estimator will work together to come up with a proposal that can be agreed upon by the represented parties. Mr. Law stated the proposed new Paragraph 5 of Section VIII states the agreement may be terminated, revoked, or canceled by mutual agreement of the other parties hereto. He questioned who are the "parties" identified in that statement? Mr. McGreal stated the force of the Bremerton Municipal Codes would terminate the developer's rights. The rights of the various parties and those the developer may TAPES #1520, 1521, ,a22 City Council Reg. Mtg. Minutes January 28, 1998 Page 20 of 26 have with another party to the agreement, such as the Port of Bremerton in developing a marina in concert with the Port of Bremerton, would also be terminated at the same time as the developers rights under the P.U.D. Mr. Law questioned if Sinclair Landing Association's approval would be required if the City felt the agreement had to be terminated? Mr. McGreal stated if the Master Developer has not submitted a Final Plan by April of 1999, and of they did not come before the City Council to request a l-year extension, then by law the developer's rights to the P.U.D. will have been terminated. The developer will still have an agreement with the Port of Bremerton and have some contractual obligations. However, what this states is all those other obligations that are not terminated by the B.M.C will be terminated. Mr. Montqomerv read B.M.C 21.02.520 substantiating Mr. McGreal's statement regarding the limitations within that code. Mayor Horton stated in response to the question about the location of the parking garage and the number of stalls, it will be an underground garage with portions of it along the waterfront under the buildings. For the most part the parking will not be visible from Washington Street or the waterfront. At this point, 2,400 parking stalls are being considered, which is delineated within the P.U.D. in a range that could go up to 2,900, but the final number is subject to negotiations. In response to Mr. Mentor's question - why the City did not go out to bid for the garage, is one that he articulated about risk. If the City bids such a project, then the City must finance it through a bond and carry the liability. The intention of who will operate the structure will be for the life of the parking revenues that go into the purchase price (25-years), unless something different is negotiated. A questioned was asked if a default occurred, who is obligated to what. If there is a default on the private portions, the Commercial Group is liable for what they committed to. If there is a default, the City will be liable for the 60% incremental taxation and the net parking revenues. That is the end of the City's obligation. Mr. Mentor also asked why didn't the City own the Transportation Center and her response was the Department of Transportation and Washington State Ferries would not accept such an arrangement. Kitsap Transit has worked in partnership with those two entities. She reminded everyone that the Transit Board of Directors is made up of elected officials from around Kitsap County and three of them are elected officials from the City of Bremerton. In regard to the question regarding the Roosevelt Field Replacement Fund, that is a separate issue and if Council chooses to have a portion of the 40% incremental taxation delineated to go into that fund, it would be presented in a follow up document for Council approval. Lastly, in addressing Council's concern about using the term "letter of credit", the following language is proposed: "The City will provide the Master Developer with a .quarantee that the revenues provided for payment as set forth above, will be paid and at such times as aclreed to between the parties. The City's financial obliaation is subject to City's Bond Counsel verification of the TAPES #1520, 1521, '1 ~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 21 of 26 City's authority to Guarantee these funds". Any reference to a "letter of credit" will be struck from the document. Rich Rucker stated in response to the questioned posed "who is the Commercial Group", it is a limited liability company that was formed in the fall of 1996 and is made up of Randy McGreal (Bainbridge Island), The Rucker Group Inc., (Silverdale), Paul Schwindt ( Investor/Portland, Oregon) and OPPI (group of local Bremerton businessmen), each having 25% in the Commercial Group. A concern was raised about the treatment of existing businesses in the Sinclair Landing project. The project is planned to include national and local tenants. TAPE #1522 - Naturally, the national tenants are the ones that are sought out for anchors that draw other people to the center. In existing centers, the local tenants are also very successful and we want them in Sinclair Landing. They will work to bring local business into this project and if for any reason they are displaced, they will be assisted in relocating on the periphery of the project that would hopefully be satisfactory to them. If necessary, the project will fully fund their move and any loss of business. In response to the question about any financial impact on a delay, this process has been made up of one and two week delays. The window of timing doesn't stay open very long and the opportunity to move on such a project is now. Their investors are asking why is it taking so long and users are anxious to learn when the project will start. He believes that any delay whatsoever jeopardizes the success because now is the time to make it a success. Mr. Law voiced concern that the Council had the agreement less than a month. He asked for further detail of the Commercial Group. Mr. Rucker reiterated Randy McGreal, The Rucker Group Inc., Paul Schwindt, and OPPI. Mr. Law asked who comprises The Rucker Group Inc and OPPI. Mr. Rucker stated he is President and Vice President of his organization and OPPI is made up of Rick Leenstra, John Loidhamer, and Fred Makouski. President Farr asked Gary Gartin, President of SLA, to summarize his remaining concerns and if the answers provided so far have answered some of SLA's concerns up to this point. Mr. Gartin restated his board had not reviewed the agreement that was before the Council and would do so on February 6. Several SLA members have expressed concerns that were related from the Financial Committee about financing by the Commercial Group and who made up that entity. They have tried to tie their concerns on the issue is there an end in sight. A project of this size is difficult to put together even with the best of efforts and they were focusing on some of the language that was added during this meeting to accomplish that kind of action. He used the scenario it was like dating and getting engaged when the agreement is approved and if all the steps TAPES #1520, 1521, , ~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 22 of 26 within that agreement are followed then it proceeds to the point of marriage. Part of what was added, during this discussion, was a "divorce mechanism" and set up so that it did not become a costly proposition. Time frames are identified so that the worst case scenario for building out is 2005, but the developer wants to move faster than that time frame. The developer is being given the right to proceed and go forward and make their best effort to accomplish the project and the City Council has to do that with the confidence that they can succeed. There has been a lot of persistence, which is necessary to accomplish a project of this size. He sees two risks, one being no one knows long term economic conditions and the second is what happens if they get into the project and funding is not adequate or is withdrawn. He was sure the City wanted assurance of the Commercial Group's financial stability, which will be confirmed through their Equity Letter. He believes their efforts are very positive and has a good chance for success. He emphasized this project has a lot of community support and there is a lot of support on the SLA Board. The impact of this project will mean many more dollars to the City than just the 40%. The rest of the downtown won't stay the way it is once the project is built. The City of Bremerton will change with people taking more pride in their community and more people wanting to locate here. Another positive aspect would be the diversification, the image of the City would change, and more jobs would be created throughout the County. He acknowledged the City has a big decision to make, but it is also a decision in the whole County and is the future of our County. The Sinclair Landing Board has always seen itself as an advisory board and are not in a position to force anyone to accept advise or opinion and tried to gather together the best opinions and experts and share that information with others. Generally, he believes the Board wants to see this go forward and they are as cautious as the City. Mr. McConnell thanked Mayor Horton, Randy McGreal, Rich Rucker, and Richard Hayes for patiently hearing them out and answering their questions without getting upset with the Council. Mrs. Arends stated Council was provided a lot of interesting information. Prior to being seated on the Council, she had the opportunity to sit in on meetings and listen to some of the briefings. A lot of effort and work has gone into this project and she supports that endeavor. She realizes this action will be the first step and hoped Council would move ahead with a decision at this time. .Spencer Horning, SLA Board member, stated he has been part of SLA since it started. Over the last couple of days SLA board members' fax machines have been going full speed ahead coupled with telephone conversations in order to make sure that key questions are answered, which he believes have been answered. He urged Council to move forward with a vote at this time based on the answers to their questions and concerns. He guaranteed that the august body that makes up SLA will talk and may have other issues of very small TAPES #1520, 1521, , ,~22 City Council Reg. Mtg. Minutes January 28, 1998 Page 23 of 26 interest. He served as a Bremerton City Councilman for three complete terms and understands how difficult it is to make a decision that has this long a future life. #0516 MISICIU(Montgomery/Arends) Motion to authorize the Mayor to sign the Master Development Agreement, 9A - ORDINANCE #4622 (SECOND READING) AUTHORIZING THE ISSUE OF A $1,250,000 TAX ANTICIPATION NOTE AND ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANK. #AB98-009 Rich Hanna, City Treasurer, handed out three documents to the City Council: (1) Updated preliminary official statements; (2) updated Bond Ordinance that included the price; (3) the offer letter based on that pricing from Seafirst Bank. As mentioned previously, the Tax Anticipation Note is a financing mechanism to provide liquidity for the General Fund's cash flow. This financing allows the City to maintain a positive cash balance in the General Fund throughout the year without carrying over large amounts of tax revenue and diverting them from delivering services to the public. The notes were priced on January 27, 1998, and a preliminary marketing resulted in approximately one half of the notes being sold with a 3.8% coupon. At that point, the bank extended an offer, based on that amount of sales, to assume the risk of being able to market the balance of the notes, which was conditioned upon Council's approval of the subject ordinance. The underwriters discount is 3.5%, which is the same as the past several years. Jane Towery, Vice President BancAmerica ROBERTSON STEPHENS, explained all of the bonds are sold through Seafirst Bank and their local branches. They made a concerted effort to market the bonds in the local area and were very successful, which she believes is a vote of confidence in the City of Bremerton. Approximately $700,000 of the bonds were sold on January 27, 1998, and they committed to the full $1.25 million. Public comment - none. Mr. Reed asked if Mr. Hanna was conmfortable with this transaction? Mr. Hanna stated yes. (Note: action on this item was taken out of sequence and the discussion was recorded on TAPE #1521) #1284 MISICIU(Montgomery/Arends) Motion to pass Ordinance #4622, authorizing the issuance of $1,250,000 principal amount of tax anticipation notes for the purpose of paying City expenses pending the receipt of general City TAPES #1520, 1521, . j22 City Council Reg. Mtg. Minutes January 28, 1998 Page 24 of 26 taxes; creating a note redemption fund; providing for the sale of those notes to BancAmerica ROBERTSON STEPHENS of Seattle, Washington. 10-A RESOLUTION #2642 REGARDING RECOVERY OF FEES FOR THE REMOVAL OF VEGETATION ON THE LISTED PROPERTIES, #AB98-013 Ordinance #4584 declares that it is unlawful and a nuisance to allow, continue or maintain grass and weeds exceeding twelve (12) inches in height, shrubs, brush, vines or trees which constitute a fire hazard or provide a harborage for rats, rodents or horticultural pests, or noxious and poisonous plants. The listed properties are currently in violation of the ordinance and pursuant to Section 9.14 of the Bremerton Municipal Code, Council is asked to approve the removal of the nuisance vegetation on the property and collection of the costs incurred by personal judgemerit against the owner and a lien against the property. Judy Johnson, Department of Community Development, explained currently the City is working with six property owners to resolve their problem; however, as of this date that work has not been completed. She requested Council to approve the process on the eventuality that the property owners do not move forward with the clean up effort themselves. Public comment - none Mr. Overson questioned if the continued problem with tall grass and weeds during the winter months was due to global warming? Ms. Johnson stated the winter has not been cold enough to stop the growth of blackberry bushes and tall grasses. Mr. McConnell questioned if one of the properties had blackberry vines growing up into the trees? Ms. Johnson stated yes, in the front and back yard. Mr. Reed questioned if he understood correctly that the City was trying to work with the property owners prior to taking legal action and if every reasonable attempt been made? Ms. Johnson stated yes. Mr. Reed stated he understands the intent of the ordinance, but he does not necessary agree with it. However, the end result does not necessarily build community, rather it divides them with one neighbor complaining against another, He encourages the City to be reasonable in their attempt to enforce this ordinance. (Note: This item was taken out of sequence and the discussion was recorded on Tape #1521 .) #'1488 MISICIU(Montgomery/McConnell) Motion to approve Resolution #2642, ordering the nuisance vegetation on the properties identified by the attached listing be removed by the City with fees incurred collected as reasonable TAPES #1520, 1521, ,022 City Council Reg. Mtg. Minutes January 28, 1998 Page 25 of 26 abatement costs, which shall become a personal judgement against the owner and a lien against the property. President Farr thanked the TV camera crew for their services: Robert Neal, Dave Chivis, Doug Engebretson, Shannon Watson, Kelly Kehoe. Deputy City clerk Paula Johnston read into the record the following notice from the public Employment Relations Commission: "The Public Employment Relations Commission, a State agency, held a legal proceeding in which all parties were allowed to present evidence and argument. The Commission found that we committed unfair labor practices in violation of a State Collective Bargaining Law, and has ordered us to post this notice to our employees. We will, upon request, provide the Bremerton Patrolmen's Association with information relevant and needed by that organization to fulfill its responsibilities as exclusive bargaining representative in collective bargaining and contract administration. We will provide the Bremerton Patrolmen's Association with information it requested on October 5, 1995, concerning the disciplinary records of certain bargaining unit members. We will reimburse the Bremerton Patrolmen's Association for attorney's fees incurred in this matter, because the defense we used in this matter had been found to be without merit in a previous unfair labor practice proceeding before the Commission. We will not, in any manner, interfere with, restrain, or coerce our employees, or refuse to bargain with their exclusive bargaining representative, in violation of the Of the Public Employees' Collective Bargaining Act, Chapter 41.56 RCW. City of Bremerton - signed by Glenna Malanca". City of Bremerton PJ/DF/me Cc: Normal Distribution FileNault APPENI ~i · ' ':':":':':ii:':':':'EMPLOY14ENT RELATIONS COHMI>3.". THE PUBLIC EMP[~CYMENT RELATIONS COMMISSION, A STATE AGENCY, }!EI.,D LEGAL pRCCEEDING Ibl WHICH ALL PARTIES WERE ALLOWED TO ERESENT EVIDENCE AND ARGUMENT. THE COMMISSION FOUND THAT WE COMMITTH:'.} UNFAIR LABOR PRACTICES; Ibi VIOLATION OE A STATE COLLECTIVE BARGA!~[NG L~W AND HAS ORDERED US TO POST THIS NOTICE TO OUR EMPLOYEES: WE WILL, Up,DR request, provide the Bremerton Patrolmen' s Association with information relevant and needed by that organization to fulfill its responsibilities as exclusive bargaining representative in collective bargai:~irig and contract administration. WE WiLL provide the Bremernon 9atrolmen's Association with informa- uion it requested on October 5, 1995, concerning the disciplinary records of certain bargaining unit members. WE WILL Le~mb:r ~.-' ' he ~remerton Patrolmen' s Association for &EEcrF:e.,"s fees L:~.:u: :~2'i kr'~ this matter, because' the defense we used i 7: :hi r~ :'~e~ - :e L b: t ~: --: found to be witboQt,' merit in a prey WE WILl. N,'T, .-:~ ~::', ..: -t.:-r, interfere with, restrain, or coerce employee.i:, c:z r-:-tu: '_o !:arqa~n with their exclusive bargaining z-epresenusuive, in -t. 'aukon of the Public Employees' Collectiv,:' . f O B 1 DTON THIS ES AN OFi.'[C:[A[. t. IOT[CE AND MUST NOT BB DEFACED BY AN'fCtlE- This not~.::;~ murk: :..mair~ po:[~-d for 60 conse,:'t~ive days from the dat:' ~;Os~i. xlg, c~:~Ci mu :i :tOt he .~ t ~qfed, tiefaced, or covered by anV o'. material. Q,les~ t';~= ,:<,n,-.c~,inq this notice oc compliance with th,2 C,L,'I(:~