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HomeMy WebLinkAbout07/22/98 TAPES #1556 & lSL CITY COUNCIL MEETING MINUTE8 JULY 22, 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 22, 1998, at 5:30 P.M., with Council President David Farr presiding. Council members present were Jim Reed, Carol Arends, Mike Shepherd, Lon Overson, John Law, and Cecil McConnell. Councilmen Wayne Olsen and Carlos Montgomery were absent. Also present were Assistant City Attorney Doug Fortner and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Farr and invocation given by Pastor Ken Hegtvedt of Lincoln Avenue Bible Church. President Farr made the following announcements: (1) The City Council held a Study Session prior to the Council meeting to discuss general Council business. (2) The City Council held a 20-minute Executive Session from 5:05 - 5:25 P.M., in the Council Conference Room. Topic to be discussed: "Real Estate." (3) The City Council held a 2-minute Executive Session to discuss a personnel issue. CONSENT AGENDA A. Minutes - July 8, 1998 #AB98-161 B. Cooperative Purchasing Agreement with #AB98-162 Island County, Washington #0035 MIalCIU(McConnell/Law) 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. #0055 MISICIU(Overson/Arends) On July 22, 1998, the Council does approve for payment those vouchers included and further described as follows: 22816, TAPE #1556 & 1557 City Council Reg. Mtg. Minutes July 22, 1998 Page 2 of 11 22817, 22827 through 222037 in the amount of $378,556.01; and Regular Payroll for the period ending July 15, 1998, in the amount of $798,951.18. President Farr stated he wanted to correct a miss-statement he made at the previous Council meeting, which was reported in the July 15th Minutes (page 8), as he stated. The correct statement should have been that he married Anna Laurie nine months after the City Council acted on approving implementation of fluoridation, not during the discussion of that issue. COUNCIL MEMBER REPORTS Mr. McConnell reported on the successful Fire Department on Review event on July 18, 1998, at the Perry Avenue Mall. This event was hosted by Council Districts #1, 2, and 3, along with the Malls' Family Day event. Displays at that event included Aid Vehicles, a ladder fire truck, as well as an antique fire truck. There were children's games and free popcorn. He thanked the Fire Department personnel for taking their time to share their expertise with the pubic. Mr. Law concurred with Mr. McConnell's comments about the Fire Department on Review event. He too thanked the Fire Department personnel for the services they provided, even though they were challenged with a heavy demand of aid calls during that time. He also acknowledged Mrs. Moen's involvement with a display of emergency fire gear that they are trying to purchase for the Fire Department through donations. The need for and importance of that emergency fire gear will be discussed further at a later time. He complimented Mr. McConnell on a job well done overseeing distribution of the popcorn. Mr. Overson reported buildings are starting to come down near the waterfront and Art Anderson & Associates have relocated to the former Old Bank Building at 202 Pacific Avenue. He reminded everyone of the Concert on the Boardwalk this Friday evening. The band performing is "Sentimental Journey" and the concert is sponsored by the Pierce Arrow Antique Auto Club, who will have several of their vehicles on display. Mr. Shepherd reminded everyone that the next District #5 Neighborhood Meeting would be held on July 23, 1998, 6:30 P.M., at Memorial Lutheran Church. The guest speakers at that meeting will be Police Chief Paul Du Fresne and Jim Spencer, Director of Parks & Recreation. He, members of his family, and some of his neighborhood children enjoyed the concert on the boardwalk. He alerted the public about the construction going on at Evergreen Park and to plan ahead if they are planning to use picnic areas. Mrs. Arends reminded everyone that Forest Ridge Park is open for picnics. She announced Burwell Street is once again open for traffic. On July 21, 1998, she TAPE #1556 & 1557 City Council Reg. Mtg. Minutes July 22, 1998 Page 3 of 11 attended a public meeting that was sponsored by the Design Team, and Landscaping Committee, who presented information on the new gateway project. The public was asked to comment on the information provided. Mr. Reed concurred with President Farr's, Mr. Overson, and Mr. Shepherd's review of the concert on the boardwalk last Friday; however, he found the grilled salmon to be the highlight of the evening. Mr. Farr. stated he received a letter from former Council member AI Colvin stating that he was called out-of-town recently due to the death of his only brother, and he expressed his sincere thanks for the accolades he received for his work and the dedication of the park. He plans to attend the July 29th City Council meeting and to express his thanks publicly. He also noted Councilman Carlos Montgomery was absent due to his being hospitalized for a brief time for a somewhat routine cardiovascular procedure. LEGISLATIVE REPORT: At the July 15, 1998, City Council meeting, Bremerton resident Del Knauss asked if the Mayors option included making the Council Pay Commission an advisory board only on setting Council's salary, and would the City Council be the ones voting on a separate ordinance setting their salary. Response: Mayor Horton intends to call the Pay Commission together every other year, which falls on a Council election year, to review the City Council's salary and forward a recommendation. That recommendation would then be presented to the City Council in Ordinance form for their consideration. If approved, the new salary would go into effect the first of the New Year. At the July 15.1998 City Council meeting, Bremerton resident Susan Brown reported the Ethics Commission members that Mayor Horton had selected have not been notified of their appointment. Response: Today, Mayor Horton's Office sent letters to the individuals that were appointed to the Ethics Commission announcing their selection to serve in that capacity, and that the City Attorney Glenna Malanca would be contacting them to set up a meeting with them. MAYOR'S REPORT - NONE PUBLIC RECOGNITION Brian D. Jones, President of Westpark/Tara Heights Resident Council, invited the Council and the public to attend the "National Nights Out" celebration to be held on a Tuesday night, August 4, 1998. The theme for the event is "America's TAPE #1556 & 1557 I City Council Reg. Mtg. Minutes July 22, 1998 Page 4 of 11 Night Out Against Crime", and is part of a nation-wide program. Activities will include a barbecue with free hamburgers, a bike tour of Westpark, speakers and demonstrations and a "Take Back Our Streets" flashlight parade at 10:00 P.M. For additional information, please call 479-8108. Carol Atkinson, Bremerton Main Street Association, thanked the Councilman who went to the first in a series of Concerts on the Boardwalk, and also for the positive comments made. She also thanked Haselwood Auto Dealers for their sponsorship. The next concert will be Sentimental Journey, an 18-piece band that specializes in "big band classics and swing with a style", which will play from 6:00 to 8:00 P.M. She thanked Musicians Local Union 76-493 for their help in making this concert possible. The Pierce-Arrow Society is also helping to sponsor this concert, and will also be bringing some of their cars down for display as an extra treat. Susan Brown, Bremerton resident, appreciated the curb cuts being put in on Clare Blvd. and speed bumps elsewhere in East Bremerton. She had positive comments regarding the way Public Recognition is being done, and the quick responses from staff, as reported by Merilynn Erhart. 8A- BID AWARD FOR PLAY EQUIPMENT FOR EVERGREEN PARK RENOVATION PHASE 1', #AB98-163 A call for bids for one (1) main play structure was prepared, advertised, distributed, and received in accordance with accepted call for bid procedures. One bid was received that met the specification requirements as advertised. Sitelines Park & Playground Products. Inc. of Everett, WA submitted the only acceptable bid (exhibit) in the amount of $22,885.60 (tax included). Becky Lorber, Parks & Recreation, reported they are inching closer to getting Evergreen Park Phase I going by getting this piece of playground equipment. Public comment - none. Mr. McConnell wanted to clarify that this bid was only for the main play structure, which is one of three items listed on the proposal. Ms. Lorber stated that three pieces have been requested, but they are waiting to see if there is additional money to purchase to other two items. #0809 M/S/C/U(Arends/Shepherd) Motion to authorize the purchase of one (1) main play structure to be placed in Evergreen Park, as part of Phase I renovation, from Sitelines Park & Playground Products, Inc. for the bid amount of $22,885.60, subject to City Administrative Policies and Procedures. TAPE #1556 & 1557 City Council Reg. Mtg. Minutes July 22, 1998 Page 5 of 11 8B - APPOINTMENT OF COMMITTEES TO PREPARE STATEMENTS FOR LOCAL VOTERS PAMPHLET, #AB98-164 Under the Local Voters' Pamphlet Specifications for Committee Statements for Ballot Measures, the City's legislative authority must formally appoint a committee to prepare a statement advocating approval of the fluoride measure and a committee to prepare a statement advocating rejection of the fluoride measure. The authority shall appoint persons known to favor the measure to serve on the committee advocating the measure and shall appoint persons known to oppose the measure to serve on the committee advocating rejection. No committee shall have more than 3 members; however, a committee may seek the advice of any person or persons in preparing their statement. For and Against statements are due at the Kitsap County Auditor's Office on Tuesday, 8/4/98, and rebuttal statements are due Friday 8/7/98. In order to meet this timeline a committee should be appointed this evening and provided with a copy of the specifications. For and against statements should be provided to the Council Legislative Assistant no later than 7/31/98. She will provide the statements to the Auditor and to each group to prepare their rebuttal statement, which should be provided to the Legislative Assistant no later than 8/7/98. It is recommended that the following be appointed to the committee advocating approval of the fluoride ballot measure: Dr. Willa Fisher, M.D., Clark W. "Bill" Biedel, M.D., Wallace C, Volz Jr., D.D.S. It is recommended that the following be appointed to the committee advocating rejection of the fluoride ballot measure: Ruth Natividad, Teresa Findlay, and Paul Drnjevic. Public comment - none. Mr. McConnell questioned whether or not the committee members would have a copy of the proposed Ballot Title. Paula Johnston, Deputy City Clerk, stated yes. #0983 M/S/C/U(McConnel/lArends) Motion to approve the Pro and Con Committees as identified. 9A - RESOLUTION NO. 2660 AUTHORIZING AN INTERFUND LOAN FROM THE EQUIPMENT RENTAL RESERVE FUND TO THE CIVIC IMPROVEMENT FUND AND RELATED BUDGET ADJUSTMENT #98-25 {ADMIRAL THEATER), #AB98-165 The proposed resolution will allow the City to provide timely financial support to the Admiral Theater to meet its ongoing operational needs and to avoid any TAPE #1556 & 1557 I City Council Reg. Mtg. Minutes July 22, 1998 Page 6 of 11 curtailment of planned events. The loan will be repaid from future tax revenue of the Civic Improvement Fund. (Note: repayment funds will come from the additional 2% Hotel/Motel Tax approved by the City Council.) Rich Hanna, City Treasurer, stated it could be assumed that the increase of 2% will be approved later this evening, and those funds would allow the City to provide an immediate infusion of cash to the Admiral Theater Foundation. The cash flow is facilitated from the monies of the Equipment Rental Reserve Fund, and will be repaid over a span of five years from future tax collections from the Hotel/Motel Tax. Public comment - none. Mr. Overson, stated the support of the Admiral Theater is important in many ways, but was sorry it had to be done this way. He generally does not support, approve, or encourage any inteffund loans because it can be a source of problems, but in this case, he believes this is the best solution. He did question why a 5-year repayment term rather than a shorter term? Mr. Hanna stated the idea was to minimize the cash flow effects on the Hotel/Motel Tax Fund due to the fact the fund balance was fairly fragile at the moment. The budget will lead to a year-ending cash position of around $5,000. Mr. Law wanted to clarify that with the new increase, there would still only be a $5,000 surplus at the end of the year? Mr. Hanna responded no, he was alluding to the budget as it was originally passed. Mr. Law pointed out that at the first of the year the income from that tax was lower and then it began to pick up. He asked what is the projection if we increase the income by increasing the tax. Mr. Hanna stated the annual collection was budgeted at the 2% tax rate, and budgeted at $88,000 for the entire year. Assuming an effective date of August 10, there would be approximately 4 months to collect at the additional rate. He predicts it would generate approximately $30,000 in additional revenue, and to end the balance at a surplus. Mrs. Arends questioned, on behalf of the Hotel/Motel Tax Advisory Committee, if the Admiral Theater would be reviewed at the end of the year along with the other applicant agencies. Mr. Overson asked Mr. Schneidler if the City's assistance would provide the theater the opportunity to continue their operations or would they need additional funds to meet their financial obligations. Robed Schneidler, President of Admiral Theater Foundation, briefly reviewed the theater's history. Their average operating overhead budget, just maintaining personnel and keeping the theatre heated, lighted, and maintained, costs approximately $350,000 per year. In addition to that cost, events are booked or the theater is rented out, which does TAPE #1556 & 1557 I City Council Reg. Mtg. Minutes July 22, 1998 Page 7 of 11 generate some funds above the incremental costs of those rental events or performances. That additional revenue contributes towards the $350,000 overhead cost. Up until this time, the Admiral Theater Foundation obtained funding sources (Community Development Block Grant, grants and private donations) to help them meet the shortfall that is not generated from rental fees and performances, They talked with the City Council about future financial needs and other resources to meet their $350,000 annual obligation. Of that amount, approximately $50,000 is contributed from income producing events. They could possibly produce more income from events; however, their primary objective is to make the theater accessible and affordable for all citizens of Bremerton and the West Sound area, The Foundation recommended splitting the remaining $300,000 in half and to seek funds from the private sector to cover $150,000 and seek funds from the public sector, i.e., City of Bremerton and Kitsap County in the amount of $150,000, at least on an interim basis of about $75,000 each year. He noted it was the City Council's decision to fund their portion out of the Hotel/Motel Tax. He also noted they anticipate the development of a significant endowment so that in the future they will be able to subsidize the operations of the theatre from the proceeds of that fund. They are also hopeful that the full season they have planned from 9-12-1998/1999 would allow them to put on more events thereby allowing them to contribute more towards the overhead. As a point of clarification, it was his understanding that the ordinance authorizing the additional 2% tax would commit whatever additional money collected to the Admiral Theatre for the balance of 1998. Mr. McConnell pointed out the lack of a recommendation from the Lodging Tax Advisory Committee regarding this issue and questioned whether or not it was before that Committee for their review. Mr. Hanna stated prior to bringing this measure forward, the Administration waited to hear the support from the Lodging Tax the Advisory Committee for the increased 2% tax, which was provided at first reading of that ordinance. The immediate proposal before Council is to address an immediate cash flow issue, which follows in the wake of the ordinance that increased the Hotel/Motel Tax. Mr. McOonnell stated his concern centered on the repayment of the loan coming out of the Hotel/Motel Tax Fund. Mrs. Arends stated the first the Lodging Tax Advisory Committee was informed of the proposed loan was at the July 15, 1998 City Council meeting when Mayor Horton announced the plan to take such action. The Advisory Committee members did discuss that issue at their meeting today, but no formal action was voted upon. She believed the Committee felt it was somewhat of a "done deal." She also mentioned previously about the timing of the "annual review" and if it would be an on-going commitment. She questioned if there was a designated time frame identified, i.e. years or on an interim basis, etc. Mr. Hanna explained the change in the tax rate is continuing. The money contemplated in the interfund loan is an advance on those future tax collections that would be presumably TAPE #1556 & 1557 I City Council Reg. Mtg. Minutes July 22, 1998 Page 8 of 11 allocated to the Admiral Theatre. He emphasized it would not mean that they would receive the additional 2% collected on top of the $50,000. She noted the Committee did formally agree to support the increased tax, but with the stipulation that the Admiral Theatre be reviewed along with the other applicants seeking Hotel/Motel Tax funds. She stressed the fact that all of the Lodging Tax Advisory Committee members were in support of the Admiral Theatre and that it is a valuable asset to the community. President Farr stated one of Mrs. Arends' questions had not been answered; however, he felt the timing of the review needed to be discussed among the City Council along with the Lodging Tax Advisory Committee. Mr. Reed asked if the proposed loan would be repaid by 2003 irrelevant to the amount of Hotel/Motel Tax collected. And, in the event amounts in that funding source were lagging, is a provision included to extend the loan, and will the Equipment Rental Reserve Fund be able to deal with a shortfall? Mr. Hanna stated there was no provision in the proposed resolution to extend the loan. He does not have 20/20 vision when looking into Bremerton's finances, but if something happened in one of those years prior to the loan being repaid, and tax dollars were not generated to meet that obligation, then it would have to be addressed at that time. He pointed out such a situation had happened in past years, but he doubted the likelihood of that happening in future years. #1907 MISICIU(Law/McConnell) Motion to approve Resolution #2660 authorizing and inter-fund loan from the Equipment Rental Reserve Fund to the Civic Improvement Fund. #1939 MISICIU(Law/McConnell) Motion to approve Budget Adjustment #98-25. President Farr announced the Sinclair Landing Association Board met today, and announced they had completed their Development Program review of the Commercial Group's proposal as required by a specific paragraph in the Sinclair Landing Master Development Agreement. This now triggers action by the City Council (30-days) to complete their review and forward that onward. He believed that 30-day period was triggered by delivery of that document. Once the Council members receive the pertinent documents, a study type session will be scheduled for further review. Rob Schneidler, President of Sinclair Landing Association ( (SLA), stated the document is an evaluation or analysis of the Commercial Group's Development Program, which is a written document that also incorporates a power point presentation. He noted Council needed to receive the confidential Development document from the Commercial Group in order to use the analysis that he was providing to them. Mr. Shepherd asked if Mr. TAPE #1556 & 1557 I City Council Reg. Mtg. Minutes July 22, 1998 Page 9 of 11 Schneidler would characterize this as a positive development. Mr. Schneidler stated absolutely, and the analysis includes several questions with responses provided by the Commercial Group. SLA believes the Commercial Group will be able to line up the appropriate investors that would allow the project to be built. He also cautioned that this is an analysis of something that is a "moving" target, i.e. constantly developing as it moves forward. 9B - RESOLUTION NO. 2661 AUTHORIZING AN INTERFUND LOAN FROM THE EQUIPMENT RENTAL RESERVE FUND TO THE ARTERIAL STREET FUND AND RELATED BUDGET ADJUSTMENT #98-26, #AB98-166 The proposed resolution will provide working capital in the Arterial Street Fund to carry out the Bremerton-Gorst connector project. Due to the scope of this project and the amount of State and Federal money involved, surplus cash in the Arterial Street Fund is not adequate to meet the financial demands of the project. Without this loan the fund will frequently operate in a deficit position through the life of the project. Rich Hanna, City Treasurer, stated the City is in the unique circumstance this summer in that there are two major arterial street projects that are going on simultaneously - Kitsap Way/Weslon to Auto Center Way, and right-of-way acquisition for the Bremerton-Gorst Connector project. The Arterial Street Fund typically operates with about half a million dollars working capital/local money, which is not enough for the City to carry out both of the identified projects at the same time. Most of the money in all of the City's arterial street projects comes from the State and Federal governments. The City receives the Gas Tax funds on an expense reimbursement basis, which means the City must front the money and then submit requests for reimbursement. Public comment - none. Mr. Overson stated some might see this financial condition as being deplorable and questioned if there was something the City could do to correct the situation. Mr. Hanna stated the City could collect fuel taxes for one year and not carry out any arterial street funds during that time period, so that the fund could accumulate. Mr. Overson stated then Mr. Hanna was indicating that there was no hope in going to the State legislators to encourage them to provide a funding scenario that would not put the City in this kind of situation. Mr. Hanna stated, throughout his career in local government City revenues have been 1 cent per gallon of gas. He suggested requesting the State agencies to speed up the cash flow, which has improved through the proactive actions of the State Treasurer in moving funds electronically rather than on pieces of paper. Mr. Overson asked Mr. Hanna to explain how the City has a fund that is so large and has so much excess that it can be used in this manner. Mr. Hanna explained the Equipment TAPE #1556 & 155? City Council Reg. Mtg. Minutes July 22, 1998 Page 10 of 11 Rental Reserve Fund is a savings account in which money is deposited monthly for the replacement, as they wear out, of all the vehicles and construction equipment owned by the City. Mr. Overson noted maybe this fund needs to be reviewed during the next Budget session. #2545 MISICIU(Arends/Overson) Motion to approve Resolution #2661 authorizing an interfund loan from the Equipment Rental reserve Fund to the Arterial Street Fund. Mr. Overson complimented Mr. Hanna on his foresight in setting up this fund. President Farr thanked Mr. Hanna for his comments on the one-cent Gas Tax revenue and the fact they are dwindling for the City. #2638 MISICIU(Arends/Law) Motion to approve Budget Adjustment #98-26. 10A - ORDINANCE NO. 4632 (SECOND READING) RENAMING KEAN STREET TO AUTO CENTER BLVD., AND RODGERS STREET TO KEAN BLVD., #AB98-158 Public comment - none #2682 MISICIU(McConnell/Law) Motion to approve Ordinance #4632, on second reading, renaming Kean Street to Auto Center Blvd., and Rodgers Street to Kean Blvd. TAPE #1557 10B - ORDINANCE NO. 4633 {SECOND READING) INCREASING HOTEL/MOTEL FROM 2% TO 4% AND AMENDING CHAPTER 3.64 OF THE BREMERTON MUNICIPAL CODE, #AB98-159 Rob Schneidler, President of the Admiral Theatre Foundation, thanked the Council members for their prior vote on the ordinance, at first reading. He noted with a great satisfaction that the Kitsap Peninsula Visitor and Convention Bureau and several hotels/motels in this area are sponsoring a promotion in the fall for travel agents to promote travel to this community for the use of golf courses. He assured the City Council that the Admiral Theatre Foundation would be pleased to go through whatever reapplication process for funding would be required in order to benefit from the additional 2% tax. Mr. McConnell pointed out for clarification that the Agenda Bill indicates that the additional 2% tax would benefit the Admiral Theatre; however, the ordinance itself does not specifically apply it to any one activity. TAPE #1556 & 1557 City Council Reg. Mtg. Minutes July 22, 1998 Page 11 of 11 #0088 MISICIU(McConnell/Arends) Motion to pass Ordinance #4633, on second reading, levying an additional special excise tax of two percent on the sale or charge made for the fumishing of lodging by any hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property; and amending Chapter 3.64 of the Bremerton Municipal Code. With no further business meeting adjourned at 6:40 P.M. DAVID FARR, City Councd President City of Bremerton PJ/DF/me C: Normal Distribution FileNault