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HomeMy WebLinkAbout07/15/98 TAPE #1554, #1555 CITY COUCIL MEETING MINUTES July 15, 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 July 15, 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 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 Randy Fulton of the Silverdale Baptist 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 Study Session at 5:05 - 5:25 P.M., in the Council Conference Room. Topic of discussion: "Campaign Signs In City Right- Of-Way." (3) The City Council held a Study Session immediately following the Council meeting in the Council Conference Room. Topic of discussion: "Proposed Land Lease For RV Facility." (4) The City Council held a 10-minute Executive Session, immediately following the above listed Study Session in the Council Conference Room. Topic of discussion: "Personnel" per Chapter 42.30.110(g). CONSENT AGENDA A. Sole Source Purchase of a Sullivan Air Compressor From Pacific American Commercial Company of Seattle, #AB98-153 #0055 M/S/C/U(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. TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 2 of 17 #0075 M/S/C/U(Montgomery/Arends) On July 15, 1998, the Council does approve for payment those vouchers included and further described as follows: 221546 through 221554, 221562, 221563 through 221564, and 221588 through 221815 in the amount of $1,520,078.24. COUNCIL MEMBER REPORTS Mr. McConnell referenced a newspaper article in the July 12, 1998 edition of THE SUN regarding City Council members receiving and/or using free Admiral Theater tickets. That article stated Mr. McConnell was unable to be reached for his comments. In response to that issue, he did receive some free tickets in his Council Office mailbox; however, he did not use them nor did he give them to anyone else to use. He announced Council Districts #1, #2 and #3 will host the "Fire Department on Parade" at the Perry Avenue Mall on July 18, 1998, 10:30 A.M. to 1:30 P.M. This event was started several years ago by Councilman John Law of District #3, and this year it is combined with the Perry Avenue Mall's "Family Fun Day." Activities will include: an archery display put on by the KBH Archers, fire truck pictures, aid cars and fire trucks, card show, games, Collectable Car Show, and a Boy Scout sponsored car wash. Refreshments will include free popcorn that is being donated by the Perry Avenue Mall. Mr. Law pointed out there would not be a District #3 Tuesday evening Neighborhood Meeting this month. He looked forward to seeing everyone at the "Fire Department on Parade" event on Saturday. Mr. Overson reported there was a gathering of several Neighborhood Blockwatch groups in the District #4 area, which was supported by Detective Kent Boekweg. Mr. Shepherd noted regarding the Admiral Theater tickets, he was also not available to make comment to THE SUN; however, he had never received any complimentary tickets from the theater. He has attended several events at the theater and highly recommends public participation at their various performances. The next District #5 Neighborhood Meeting is scheduled for July 23, 1998, 6:30 P.M., at the Memorial Lutheran Church. Police Chief Paul Du Fresne will be speaking on the Blockwatch Program and Shore Patrol issues. Jim Spencer, Parks and Recreation Director, will be speaking on the expansion of Evergreen Park and development of Haddon Park. In addition, there will be discussion on the next Clean Up event, which is scheduled for September 19, 1998. Mrs. Arends reported Council Districts #6, #7, and #8 held a successful Neighborhood Meeting on July 9, 1998. There was a good turnout and the guest speakers Municipal Court Judge James Docter and Kitsap County Prosecutor Russ Hauge made interesting presentations. TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 3 of 17 MAYOR'S REPORT Mayor Horton announced on July 21, 1998, 8:00 AM - 12:00 Noon the Kitsap County Fire Chiefs' Association will hold a Residential Sprinkler Workshop in the City Council Chambers. The informative workshop will provide an overview of the following: (1) Sprinkler Effectiveness; (2) Correction of Sprinkler Myths; (3) Summary of the Scottsdale Experience; (4) Cost Issues regarding installation and Cost reduction options, along with many other key issues. This is a free educational opportunity for Fire Department personnel and the general public. President Farr thanked the TV camera crew for their services: Robert Neal, Josh Doehne, Melody Zapata, and Mike Peebles. PUBLIC RECOGNITION Rob Schneidler, President of Kitsap Physician Services and a member of Kitsap Cares Partnership, noted Kitsap Cares Partnership is made up of a group of volunteers within the community that have taken on a number of projects, one of which was supporting fluoridation in drinking water. He acknowledged the acceptance of the Initiative Petition on fluoridation to be submitted to the voters on the Primary Election ballot in September. While not taking a position one way or the other at this time, he encouraged the City Council and Mayor Horton to direct the City Attorney, in order to avoid any confusion on the part of the voters, to submit a Ballot title that was presented in the positive so that a simple "yes" or "no" could be registered by the voters. Glenna Malanca, City Attorney, acknowledged that she would be writing the Ballot title. She also cautioned that Council should not take any further public comments relating to fluoridation because of the qualification of the initiative to be placed on the ballot. In regards to Mr. Schniedlers' comment, the Ballot title will be submitted in the positive. The Resolution was a technical requirement that had to be done based on what was proposed. The Ballot title drafted by her office states the following: "shall the City of Bremerton continue implementation of fluoridation? President Farr questioned the timing for naming the Pro and Con Committee members to prepare Pro and Con Statements for the ballot? Meallynn Erhart, Le~3islative Assistant announced the City is seeking six volunteers, three on each side of the issue. Anyone wishing to participate should contact the City Council Office 478-5280. Naming the Pro and Con Committee members will take place on the July 22, 1998, City Council Meeting Agenda. Mr. Shepherd asked if there were any qualifications or requirements to serve on that committee. Ms. Malanca stated there were no legal qualifications, just the ability to give input and work within that committee structure. In response to someone's comment from the audience whether or not the committee members had to be City residents, only City of Bremerton residents would be voting on the ballot measure; however, those living outside the City and receiving City water services can be granted the opportunity by the City Council to give input, if they so choose. TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 4 of 17 Janice Larson, Bremerton resident, expressed concern over the discharging of illegal type fireworks by her neighbors on the 4th of July. She provided pictures that showed the outfall of debris onto her property, including damaging several vehicles that will require repainting. It also concerned her that the individuals responsible did not clean up the debris in the street or surrounding properties. She pleaded with the City Council to ban the discharge of fireworks. President Farr stated he sympathized with Ms. Larson considering that he also found debris from bottle rockets on the roof of his home, which could have started a fire. He felt it was time the City reviewed the possibility of instituting a total ban on the discharge of fireworks. Susan Brown, Bremerton resident, referenced a newspaper in the July 12th edition of THE SUN, "Council ends silence on use of free tickets", and viewed it as another example of an ethical issue that needed to be addressed in a rewrite of the City's Ethics Ordinance. She was not advocating instituting a criminal charge for such activities, however, she did feel it warranted a public acknowledgemerit and apology for a poor choice of judgement. The way of enforcement under the existing law is the entire City Council judges itself. She asked what happens when the entire City Council is charged with an offense? In the existing law it states "gifts of insignificant value"; however, she believes there should be a specific amount designated. Under the existing ordinance it also states each public officer elected shall acknowledge receipt of a copy of the Ethics Code before entering into service. She noted that statement assumes the ordinance is read. She suggested that part of the law be rewritten so that it says "each public officer elected shall acknowledqed thev have read and understand the Code of Ethics." She asked Mr. Overson if he was quoted accurately in the newspaper article that he thinks the City has a lot more important issues than that. Mr. Overson stated possibly. Mrs. Brown stated in January, Council President Farr informed her that rewriting the Code of Ethics was a low priority for the City Council. Based on Mr. Overson's comment, he apparently is saying the same thing. Even though Mayor Horton formed an advisory committee to review the Ethics Code three weeks ago, no one on the committee has been notified that they have been selected, nor has a meeting been scheduled to start the discussion. She believes that when an issue of public trust comes, it should go to the top of the list. She referenced the Seattle Code of Ethics states: "No City officers shall engage in any activity that would, to a reasonable person, appear to impair the officers independence of judgement." Gordy Byrd, Kitsap County resident, asked if he understood correctly that if he offered to give City Council members one of his "Byrd's Nest" tee shirts and they accepted, it would be a breach of the City's Code of Ethics. President Fan' explained there are specific rules that must be followed and Council would consult their legal staff before accepting anything of any value. Mr. Byrd stated if TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 5 of 17 he gave the City Council members something it would be given "from the head," not out of what he could gain from them. Carol Atkinson, Bremerton Main Street Association, reminded everyone that the first concert on the boardwalk, performed by Jr. Cadillac, would take place on July 17, 1998, 6:00 - 8:00 P.M. This concert is sponsored by Haselwood Dealerships. Venders will also be located on the boardwalk during that event. She announced anyone who had purchased a commemorative "brick" or "granite" since the last installation will have them set in place on July 16. President Farr expressed his enthusiasm over the concert series. Ms. Atkinson noted all of the concerts will be held from 6:00 - 8:00 P.M. except for the Soul Survivors performance on July 31, which is scheduled from 6:00 P.M. - 9:30/10:00 P.M. 8A - APPOINTMENT OF RICHARD DUNLAP TO THE BREMERTON HOUSING AUTHORITY BOARD OF COMMISSIONERS, #AB98-156 There is a vacancy on the Housing Authority Board of Commissioners. It is recommended the vacancy be filled by Richard Dunlap. Mayor Lynn Horton stated Mr. Dunlap is employed with Parametrix Inc., and is involved with many activities throughout the community, including the Kitsap County Economic and Development Council and the Bremerton Rotary Club. She believes his engineering background would be of benefit to this Board especially if they expand into the area of more new construction rather than just managing West Park and existing Section 8 housing. Mr. Dunlap has also been involved in the development and construction of low income housing for the City of Tacoma. Public comment - none. President Farr stated he was aware of Mr. Dunlap's involvement in other activities and believes he will be a great addition to the Housing Authority Board. #1162 M/S/C/U(Montgomery/Overson) Motion to confirm the appointment of Richard Dunlap to the Bremerton Housing Authority Board of Commissioners. Richard Dunlap stated he was honored with Mayor Horton's nomination and appreciative of Council's vote of confidence. His decision to become involved with the Housing Authority stemmed from his relationship with a Tacoma program. For the past two years he has served as a consultant with the Tacoma Housing Authority and discovered there are wonderful opportunities for the Bremerton Housing Authority to become involved in redevelopment of the community, improving the quality of life, and providing quality affordable housing. He believes that is a role that the Bremerton Housing Authority needs to take on TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 6 of 17 as a leader. He looks forward to working with the Housing Authority's Executive Director and Board members to make a difference within the community. President Farr thanked Mr. Dunlap for volunteering to serve. 8B - PROPOSED PROFESSIONAL SERVICES AGREEMENT - EDWARDS. SIEH. SMITH & GOODFRIEND, P.S.. #AB98-157 The City Attomey has requested that Edwards, Sieh, Smith & Goodfriend, P.S., be retained to represent the City in an appeal regarding the Jury's verdict in regards to the lawsuit City of Bremerton v. CH2Mhill Northwest, Inc., et al. Glenna Malanca, City Attorney, stated she would be available to answer questions, Public comment - none. #1273 MIS/C(Montgomery/Arends) Motion to approve the professional Services Agreement for Edwards, Sieh, Smith & Goodfriend, P.S. Vote on motion: In Favor: Montgomery, Arends, Shepherd, Farr, Overson, Law, McConnell, Olsen Abstain: Reed Motion carried. 9A - ORDINANCE (FIRST READING) TO RENAME KEAN STREET TO AUTO CENTER BLVD., AND RODGERS STREET TO KEAN BLVD., #AB97-158 Since the receipt of a proposal in 1990, the City has contemplated a move to change the names of Kean and Bruenn Streets to Auto Center Boulevard. The City has worked with various organizations, the Bruenn and Kean families, and affected property owners to find a workable arrangement. In June, the City proposed an ordinance enacting these name changes. After collecting input from affected parties, an alternate plan has been proposed. If passed, this ordinance renames Kean Street to Auto Center Boulevard and Rodgers Street, a partially undeveloped right-of-way, to Kean Boulevard. Rodgers Street is scheduled to be rebuilt in 1999 and will provide a suitable monument to the late Mayor Kean. The renaming of Kean to Auto Center Boulevard is intended to enhance regional recognition for the auto center neighborhood. The City has an implementation schedule designed to make the transition less costly and confusing for property owners and citizens. These plans have been shared with the property owners in letters and meetings with representatives from interested groups. The staff feels confident that this proposal represents the best possible consensus without diminishing the original objectives. TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 7 of 17 Mayor Lynn Horton stated this issue was brought to the Council previously, however, prior to taking final action, the Administration felt it was necessary to meet with the affected parties and outline the proposed action. When a meeting was held with those affected, there was some concern voiced and a compromise proposal was promoted. The new proposal is to leave Bruenn Avenue and Union Avenue as they are, Kean Street will be renamed Auto Center Blvd., from 1st Street to Werner Road, Rodgers Street will be renamed Kean Blvd. The City will design and post appropriate signage identifying those name changes. In speaking to the individuals involved, Mayor Kean's daughter Ruth Yates is agreeable with the new proposal. Roto Rootor and the auto dealers were contacted and they did not voice any problems, therefore, the Administration recommends Council approve the proposed ordinance, on first reading, since it was a fairly radical change from the original ordinance previously presented. Gordy Byrd, Kitsap County resident, asked the purpose of the proposed changes. Roy Mclnnis, Bremerton resident, questioned whether or not the street numbers would change when the street names changed. Mayor Horton explained the change in name came as a request from the auto dealers so that Auto Center Way would be a more identifiable business zone within the community. Regarding any change in street numbers, some of the numbers may change. She emphasized the proposed change would not take effect until July 1999. Mr. Reed stated he believed any improvement to enhance the recognition of this area will be advantageous to the City. He has already discussed with Mayor Horton the fact that the whole corridor west of Highway 3 from North Kitsap Way to the water is a very aggressively changing community and the City may want to look at improving the name change on some of the other streets in order to completely address this particular business zone. He totally supported the proposal as presented. #1273 MISICIU(Montgomery/McConnell) Motion to approve Ordinance, on first reading, renaming Kean Street to Auto Center Boulevard and Rodgers Street to Kean Boulevard. 9B - ORDINANCE (FIRST READING) INCREASING HOTEL/MOTEL TAX FROM 2% TO 4% AND AMENDING CHAPTER 3.64 OF THE BREMERTON MUNICIPAL CODE, #AB98-159 Pursuant to RCW 67.28.181 the City is authorized to increase Hotel/Motel Taxes above the historic limit of 2%. The Administration is proposing that the City increase the Hotel/Motel Tax from the present 2% on the sale of lodging to 4% TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 8 of 17 and use the additional tax proceeds to benefit Admiral Theatre operations. This use of the additional tax would be reviewed annually by City Council. Mayor Lynn Horton stated this issue came about because of the newness of the Admiral Theatre. It is known that the first five years of business operations for most business are its most difficult and crucial timeframe. The Admiral Foundation Board members and their Director came to her and the City Council indicating that they were having the need for a subsidy at least for a period of time to allow their organization, as a new business, to get to the point where they were self-sufficient. This issue was brought before the Lodging Tax Advisory Committee, which is a relatively new committee within Washington State. That committee held a meeting on July 8, 1998, and adopted the following recommendation: "The LodGinG Tax Advisory Committee agrees with the proposed increase in the Room Tax with the stipulation that all .groups meet the same criteria for funding from the full 4% Tax annually. Any immediate increase should be resubmitted at the end of the year for equal consideration." Although the Committee submitted a recommendation, she is recommending that if the additional 2% tax is approved those funds, on an annual basis, be earmarked for the Admiral Theatre. She reminded everyone that the Admiral Theatre building is owned by the City and contract with the Admiral Theatre Foundation for its operation. She briefly reviewed the voters' approval for the City to grant the Foundation a 50-year lease. She reviewed the Admiral Foundations' budget materials, which included the employment of 8.5 full time employees and approximately $109,000 is spent in salaries, which when broken down amounts to a very conservative amount of money. For the amount of work that is required, they are probably understaffed. The Foundation has looked at various venues to raise funding and have approached the Kitsap County Commissioners about raising the County's Hotel/Motel Tax. There has been some discussion that the City wait to take any action until the County approves such a tax increase. She urged Council to not wait since it would add to the dilemma of the Admiral Theatre. Mayor Horton reviewed the Theatre' 1998/1998 calendar of events, which she believes is well rounded with performances for all ages and tastes. It is her intent to bring forward a Budget Adjustment at the next Council meeting that would identify a loan of $50,000.00 to the Admiral Theatre, which would be repaid $10,000.00 each year through the increased Hotel/Motel Tax, if approved. Gordy Byrd, Kitsap County resident, asked why the City was not proposing a 1% increase rather than 2%. The following comments were made by members of the Lodging Tax Advisory Committee, i.e.,Yonq Kanq, owner Oyster Bay Inn; Rowena Jonqeward, Midway Inn/Bremerton resident; Rene Kiehl, Super 8 Motel, President Kitsap Lodging Association: (1) The letter from the Lodging Association members TAPE #1554, #1555 City Council P, eg. Mtg. Minutes July 15, 1998 Page 9 of 17 located in Bremerton supported the increased 2% Hotel/Motel Tax for use by the Admiral Theater because it is an outstanding performing arts facility even thought the downtown is somewhat a less desirable area at the present time. (2) Performers at the Admiral have utilized Bremerton hotel facilities and have taken away a very positive impression of the area and results in positive promotion. (3) The Admiral Theater Foundation was commended for investing their time and money to renovate the multi-million dollar facility. (4) The increased 2% tax will cost each of the hoteliers in Bremerton approximately $10,000.00 per year. (5) If the 2% increase is not countywide Bremerton hotel operators will be at a disadvantage because travelers do shop around for the best price. (6) Urged waiting until Kitsap County acts on increasing their tax by 2% before Bremerton implements such an increase. (7) When the Admiral Theater sends out their 1998/99 schedule of events the hotellets want them to include information on hotel/motel availability and restaurants availability. (8) The Admiral Theater should meet the criteria identified for all applicants requesting Hotel/Motel Tax funds. (9) The hoteliers have seen a dramatic reduction in military personnel utilizing their establishments, which they were dependent upon to fill their rooms. (10) The additional 2% Tax should be shared with other agencies/organizations that promote tourism. (11 ) The annual $10-12,000 that a hotellet must pay in Hotel/Motel Tax could be used to promote their own establishment in more direct type of advertising; however, there was support for the Admiral Theater to receive those funds for a limited period of time. TAPE #1555 (12) Ten businesses are being asked to shoulder the cost of providing financial assistance to the Admiral Theater. (13) the proposed action was a rush to judgement before the Lodging Tax Advisory Committee had time to study the issue. (14) Question - if approved will this carry over through October proposals and would not be brought up for reconsideration until the year 20000? The following individuals spoke in favor of the proposal: Rob Schneidler, President of the Admiral Theater Foundation; Klaus Golombek, Admiral Theater Board member; Shenil Huff-Menees, Admiral Theater Board member; Jerry Reid, Admiral Theater Board member, Alex Roos, Puget Rental Owners Association, The following comments were made in favor of the proposal: (1) The Admiral Theatre Foundation is a non-profit organization created to renovate and operate the City's theater (the City of Bremerton owns the Admiral Theater building). (2) Members of the Foundation are working with the Kitsap County Commissioners to bring forth an action of this sort so that it presents a more equitable tax throughout the County. (3) On the issue of the City approving the increased tax TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 10 of 17 prior to the County taking similar action, the City owns the theater and should show leadership in this situation. (4) The State Legislature sets the limit of the Hotel/Motel Tax and what it can be used for. Financially supporting an art facility is an eligible use. (5) Other theater facilities in other communities throughout Washington State receive funding through Hotel/Motel Taxes, i.e., the City of Olympia and Thurston County have committed their entire Hotel/Motel Tax allocation for the next 25-years to the Washington Center For Performing Arts, which is located in Olympia. (6) In 1991 the citizens of Bremerton voted by a 77% plurality to authorize the City of Bremerton to contract to lease the Admiral Theater facility to the Admiral Foundation for a period of 50 years. (7) Upon the signatures of that 50-year lease, the Admiral Theatre Foundation obtained $4.2 million from both the public and private sector (nearly 60% coming from the private sector). (8) The Admiral Theater was opened in 1997, held over 100 events and more than 25,000 people attended those events. (9) The professional and business backgrounds of the Foundation's Board of Directors were identified. (10) The managers of the theater are taking other approaches to deal with the costs to fund the theatre, but their prime objective is to keep the quality of the facility as it is now. (11 ) The theatre was not created to just make money; it was created to bring arts and entertainment at an affordable rate to the entire public. (12) The Mission Statement of the Admiral Theatre states the Foundation pledges the Admiral Theatre shall be the primary link in the encouragement and development of cultural, civic and entertainment horizons of the entire West Puget Sound. (13) The Admiral Theater Foundation is requesting funding assistance for building costs, due to the fact that ticket prices cannot pay for the infrastructure. (14) Congressman Norm Dicks pointed out on several occasions that the Pantages Theater in Tacoma, which has been operating for over a decade, still does not pay for all of its costs out of the sale of tickets and relies on community support. (15) The practice of sending out information on hotel/motels/restaurants availability will continue when tickets or event information is mailed to people outside of the community. (16) The Admiral Theater Foundation's financial records are open and if the City requested examination of those records they are willing to provide that opportunity, (17) The Admiral Theater employees are dedicated to their job and do not get paid adequately for what they are asked to do. (18) By increasing the Hotel/Motel Tax by 2% would only amount to $1.00 on a $50.00 room. (19) Many people from outside of Kitsap County attend events at the Admiral Theater. (20) Through the efforts of the Admiral Theater Foundation, people from within the Bremerton/Kitsap County community donated hundreds of thousands of dollars and hundreds of people came forward to raise money for the Admiral Theater. No other groups can boast about such an accomplishment. (21) Supporting the request as presented is showing support of those people who said they wanted such a facility in their community. (22) The Puget Sound Rental Owners Association supports the Admiral Theater Foundation and the City's support that is given to that facility. They encourage the positive TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 11 of 17 development of anything that will enhance the livability of the City of Bremerton. (23) The Admiral Theater Foundation is still in the process of raising funds within the community. They raised slightly more than $2.2 million through individual contributions. Mayor Lynn Horton stated in answer to the question why not wait until the County has approved their 2% increase, the City of Bremerton owns the theater building, and she believes the Kitsap County Commissioners were waiting for the City to take the lead on this action. If the City didn't support the theater, she doubted they would lend their support to that effort. The rational of raising the tax by 2% rather than 1% is to address the shortfall experienced by the theater and other sources of funds is severely restricted. Based on the comment made by some of the hoteliers, in 1998 when she became a City Council member the City had its first 18-holes at Gold Mountain and the Naval Museum, which the City funded between $20-30,000. Over the last 10-years, the City has contributed to the Turner Joy ($40,000 seed money out of the General Fund), the City paid millions of dollars for construction of the boardwalk, which is still costing the City and hosts the Blackberry Festival, which brings tourist into the City. No Hotel/Motel Tax funds were used for the boardwalk project. The additional 18- holes of golf at Gold Mountain ($,4 million), which brings additional people into the community. received no funding from the Hotel/Motel Taxes. The Regional Pendergast Sport Complex, a several million dollar, project that Kitsap county also contributed toward, is another facility that brings in tourist into the community without any financial support from the Hotel/Motel Tax. None of the funds for maintaining those facilities have ever come from the Hotel/Motel Tax. A number of years ago the City did lease a piece of City property to Elanden Gardens, which is another tourism component to our community, and for those many years the City supported the Naval museum and continues to do so in an alternate fashion, This year, for the first time, the City purchased a full-page ad in the WALT Guide, which is the Washington State Tourism Guide, and is also developing a Bremerton tourism brochure. She believes the City has paid millions of dollars, over the last decade, to support tourism in the Bremerton community and to support the hotel/motels and restaurants. She stressed, the City cannot do everything, and the theater is one of those things that need the additional help. Mrs. Arends stated she chairs the Lodging Tax Advisory Committee, which started meeting in March of this year. In May the Committee learned that the City wanted to utilize the proposed 2% tax increase for a specific purpose. She stressed the uniqueness of the military travel in Kitsap County and how that can be a problem for the hoteliers in raising any kind of rates since they must absorb some of the costs. She also noted the first 2% of the Hotel/Motel Tax collected can be charged to sales tax, but the second proposed 2% could not. She was proud of the Committee's actions in summarizing their support of the proposed TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 12 of 17 increase, but they were hoping to stipulate that all groups would be reviewed annually. In 1997 the Admiral Theater was recommended by the Lodging Tax Advisory Committee to receive Hotel/Motel Taxe, however, in 1998 they did not submit a request at the time applications were accepted. One concern voiced had to do with the length of time the funding would be directed to the Admiral Theater. As far as the City enacting the tax increase before Kitsap County, she felt a step of faith was needed with the hope that the other entity would follow suit. There has been some assurance that Kitsap County is also discussing this issue and the City is hopeful that they will join in making this step. The Advisory Committee was always of the opinion that the Admiral Theater was very important to the community. Mr. Shepherd stated initially he had concerns about the financial stability of the Admiral Theatre, but after reviewing their financial data, holding study sessions and discussing it with Mayor Horton, he believes it is a fiscally responsible operation. He researched other cities, i.e., Olympia, Eugene, Oregon, etc., and learned the proposed action is not uncommon and is an appropriate use of the Hotel/Motel Tax funds. He believes the theatre is a critical component of the Bremerton picture and how we believe in ourselves and see ourselves. It is also critical to the quality of life of our Navy visitors. He attends events at the theatre thereby paying his share and he encouraged that kind of participation by others throughout the community. Mr. McConnell pointed out there was nothing in the proposed ordinance that dedicated the additional 2% tax for the Admiral Theatre. He asked if this proposal is approved, would the additional 2% be combined with the current 2% tax and process through the Lodging Tax Advisory Committee for their recommendation for disbursement? Mayor Hotton explained if Council approves the increased 2% Tax, she will then bring forward a Budget Adjustment that would last through 1998, at which point the Lodging Tax Advisory Committee would review the Hotel/Motel Tax issue and forward their recommendation on to the City Council. She will be also be forwarding her preliminary 1999 Budget for Council's consideration. Mr. McConnell asked if this would be done on an annual basis. Mayor Horton stated that was correct. Mr. McConnell stated he wished there were another source of funds to assist the Admiral Theatre. Some of the other theatres that currently receive funding through the Hotel/Motel Tax are located along the I-5 corridor and have a greater tax base to draw from. He asked if Bed-n-Breakfast, RV parking facilities, etc., would also be taxed. Mrs. Malanca stated this additional 2% is the first that the receiving entities will be accountable. The first 2% comes out of the City's Sales Tax. Mayor Horton noted the Administration did research other possible funding resources. Mr. Law suggested that the funds be taken out of the City's Parks Department revenues; however, because of this years weather conditions Parks' revenues are down. Other than taking funds out of the General Fund, she had no other funding TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 13 of 17 source for this purpose. She will also be discussing this issue with the Kitsap County Commissioners. #1359 MISICIU(McConnell/Montgomery) to approve Ordinance, on first reading, increasing the Motel/Motel Tax from 2% to 4%. Mr. Montgomery stated when he travels out of the area he does not inquire about the cost of the Room Tax when seeking lodging. However, after a recent visit to Wenatchee, Washington, he reviewed his lodging bill and saw that he paid 12% in taxes. If the City does not support the Admiral Theatre, we would be sending out a negative message. By not supporting the theatre it could also adversely affect the Sinclair Landing project. The current City Administration has work diligently to change the image of Bremerton and it is important the support be given to the theatre. He has attended a number of events at the theater and paid for most of them. He recalled he may have used one flee ticket to an Admiral Theater event and that had no influence on his decision on this issue. He emphasized he can't be bought for anything leave alone for a price of a ticket. Mr. Overson stressed there are two issues, one being whether or not to support the Admiral Theatre. He wanted it understood that the other issue was the fact if those tax dollars are dedicated to the Admiral Theater it is taking money out of the pockets of the hotel/hoteliers. Over the past few years the Hotel/Motel Taxing situation has been declining, which reflects that the use of hotels and motels in the City is down. If Council approves the proposed increase he emphasized the need to recognize what affect it has on the hoteliers. With any luck, the continued investment in the community and development of the Sinclair Landing project along with other positive things done by the City will demonstrate that the hotel/motel activity level will increase. Mr. Law pointed out the cities of Port Orchard and Poulsbo have already increased their Hotel/Motel Tax by 2%. He understands the concerns raised by the hoteliers that are affected by the government per diem customers. However, the Council has been assured that issue will be reviewed and hopefully raised. He doubted the non-government travelers pay much attention to the Room Tax being charged. Overnight lodging in Seattle can end up costing over 25% in taxes. He will lend his support in this manner to the Admiral Theater and believes action needs to be taken in order that the theatre can meet their commitments. Mr. Reed stated he wanted the hoteliers to know that he listened very carefully to their concerns and respects their statements. At the same time, he is very much committed to leaving his position that he currently holds with the City being a better place and he believes one of those crucial elements is the existence and success of the Admiral Theatre. He was overwhelmed with the list of individuals TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 14 of 17 that serve on the Admiral Theatre Foundation Board of Directors. Without the hoteliers' letter of reluctant support of the tax increase, he doubted he would give his support. He believes the issue is to move the County along in "leveling the playing field." Mr. Olsen stated he has talked with the managers of the local hotels and motels and he understands their point of view on this issue. However, it comes down to the question, "do we believe in Bremerton?" He agrees with the President of the Admiral Foundation, that the theater belongs to the people, and this is the reason he is in favor of this Resolution. President Farr added that many citizens have no qualms over putting maintenance money into parks, repairing streets, or other public entities. This City owns the Admiral Theater, and it belongs to the citizens too. He has no problem in supporting this facility. Vote on motion - unanimous. 9C - ORDINANCE #4631 (SECOND READING) ADOPTING THE 1997 EDITIONS OF THE UNIFORM CODES AND STATE BUILDING CODES, AND AMENDING CHAPTER 17 OF THE BREMERTON MUNICIPAL CODE, #AB98- 149 Judy Johnson, Building Official, pointed out that the fee schedule had been broken out of the ordinance, following first reading, in order to adopt it by Resolution, which is the next item of business. Over the past week she has discussed this issue with Alex Roos, a representative of the Puget Sound Rental Owners Association (PROA), regarding numerous changes to the 1997 Code. His organization is concerned how adoption of the codes will affect existing buildings. Her response to that concern is that charge in the code has never changed. Any work that is done is required to come up to the codes. There will not be any retrofitting or requirements of any existing building as long as it was legally maintained and/or constructed at the time it was built. The Code change itself is a process that takes three years. Each year the changes are promulgated and the third year are put into a new book, which is what is proposed for adoption. she encouraged anyone from PROA or citizens of Bremerton to come into their department and discuss how the code would specifically affect their unique situation. Alex Roos, representing the Puget Rental Owners Associations, pointed out Council will be asked to vote on 1,073 changes under this new Code, He asked how does Council review that many changes prior to adopting them. He sent a letter from PROA to the City Council, but unfortunately it was directed to the wrong person and apparently lost, asking that they be provided a list of changes and how it would affect members of PROA. In his discussions with Ms. Johnson, TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 15 of 17 he was assured that the amendments would not cause retrofitting of existing structures. Gordy Byrd asked if he purchased an existing building would any changes that he wanted to make be required to meet the new code. Ms. Johnson stated it would be depend on the site and the structure itself. At the time a person selects a property, they should come to her office and discuss what it was they wanted to do to the structure. President Farr acknowledged that he misplaced Mr. Roos' letter. He did ask the Legislative Assistant to contact PROA about the Building Code Agenda item. This item was approved on first reading of the ordinance and was reviewed by both of the Council Committees. As a side issue, he would like to have organizations, such as PROA, brought into the loop in a more formal manner when issues of this nature come before the City Council. He agreed that the proposed changes were massive and would take considerable study. Council does have to rely upon staff and in this case it is staff passing on regulations that are approved at the State or higher level. Mr. Montgomery pointed out the last time the City Council approved changes to these codes he commented that he questioned what was being proposed. At that time, the City's Building Official handed Mr. Montgomery two large books to review, which he found to be somewhat overwhelming. He re-emphasized the changes would only apply to new construction. #2400 M/S/C(Montgomery/McConnell) Motion to pass Ordinance #~631, on second reading, adopting the 1997 editions of the Uniform Codes and the State Building Codes and amending Chapter 17 of the Bremerton Municipal Code. Mr. McConnell pointed out the importance of getting involved with amending these kinds of codes at the State level. The code is already in effect and the Council is taking action to adopt it to apply to Bremerton so that issues that become infractions could be handled through Bremerton's Municipal Court rather than a State or Superior Court. Mr. Reed pointed out the subject codes are already adopted statewide and not amended by local city governments. Ms. Johnson explained there are three model codes in the United States and this is the largest of the three. Of the three model codes that are nation-wide, this particular International ICBO Code that is used by the City, the UBC, is applicable in 1998, after which all three codes will be combined into an International Code. Glenna Malanca, City Attorney, pointed out the City's current Building Code is in force until it is changed. The City can adopt portions of the Uniformed Codes TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 16 of 17 and delete portions. For example, there are times in the Fire Code where the City adopts certain sections and add other matters that are not covered by the State uniform Code. Local jurisdictions do have the option to adopt all or parts of the codes. All jurisdictions that she is aware of adopt all or parts of these Uniformed codes, but they do have local variances. Mr. Overson pointed out the Bremerton City Council adopted the Unformed Housing Code, which included adopting certain sections and modifying other sections. The city does have some local interpretive or decision power, but Council needs to recognize how that affects your community. Vote on motion: In Favor: Montgomery, Reed, Arends, Shepherd, Overson, Law, McConnell, Olsen Abstain: Farr 10A - RESOLUTION #2659, ADOPTING 1997 BUILDING CODE PERMIT FEES, #AB98-159 In conjunction with the amendment of Chapter 17 of the Bremerton Municipal Code to adopt by reference the 1997 edition of the Uniform Building Codes, staff is recommending that the permit fees for Building, Mechanical, and Plumbing Permits be adopted by Resolution. Judy Johnson, Building Official, stated she would answer any questions Council might have. Gordy Byrd asked how much of an increase is proposed. Ms. Johnson stated the recommendation is to amend the 1994 table as opposed to the 1997 table. The City's fees for $1-500.00 valuation increased by $2.30. The fee is fluctuating and as you have higher values the fee reduces because of those higher values. #2704 M/S/C/U(Montgomery/Arends) Motion to pass Resolution #2659, adopting fees for Building, Mechanical, and Plumbing Permits set forth in the 1997 edition of the Uniform Codes. Mr. Overson stated because this issue had not gone before Council Committees there may be some questions at this time. He questioned whether there is any identifiable percentage of increase that can be tracked as to CPI increases over the past years and any potential impact on income. Ms. Johnson explained the proposed fees are the same as those reflected in the previous ordinance at the time of its first reading. The fees were just separated out of the ordinance and placed in Resolution format. The same fees went through a Council Study Session as an entire package. The general percentage increase amounted to TAPE #1554, #1555 City Council Reg. Mtg. Minutes July 15, 1998 Page 17 of 17 approximately 14%. Mr. Overson asked if that spanned across 1994-1997 or from 1997. Ms. Johnson stated she recalled the City adopted the 1994 Code in 1995 and each year the Building Standards' magazine (April issue) has increased cost for the square footage of building a home. The actual amount went from ,$51.90 to $51.99 to $52.05. There were no increases in 1998 because there was no increase identified in the Building Standards magazine. Mr. Overson asked if the proposed increase percentage summarized those increases. Ms. Johnson stated yes. Mr. Shepherd stated he called several other municipalities and learned that the City's fees are quite reasonable. Mr. McConnell pointed out the Agenda Bill stated under Impact" that if this resolution is not approved the City would not be able to enforce the fees. He questioned would the City's current fees remain in place? Ms. Johnson concurred current fees would remain in place. Vote on motion - unanimous. With no further business meeting adjourned at 8:15 P.M. City of Bremerton PJ/DF/me cc: Normal Distribution FileNault