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HomeMy WebLinkAbout11/10/98 TAPES #1580 CITY COUNCIL MEETING MINUTES NOVEMBER 10, 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, Tuesday, November 10, 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 Council member Carol Arends. President Farr made the following announcements: (1) The City Council held a Study Session prior to the meeting tonight, to discuss general Council Business; (1) Following the Council meeting tonight, there will be a Study Session to discuss the 1999/2000 Budget, in the Council Conference Room; and (1) City Council will hold a 45-minute Executive Session on Thursday, November 12, 4:45 P.M. in the Council Conference Room, followed by a Study Session to discuss the 1999/2000 Budget. CONSENT AGENDA A. Minutes of Meeting - October 28, 1998 #AB98-249 #0034 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. #0060 MISICIU (Montgomery/Arends) On November 10, 1998, the Council does approve for payment those vouchers included and further described as follows: 225336 and 225374 through 225467 in the amount of $170,999.53; and Regular Payroll in the amount of $914,785.82 for the period ending October 31, 1998. COUNCIL MEMBER REPORTS Mrs. Arends provided a brief report on the Gateway project, and added it seems to be moving along on schedule. TAPE #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 2 of 7 Mr. Shepherd reported on a "Livable Communities Fair" he attended in Seattle over the weekend. He also announced the next District 5 Neighborhood meeting to be held Thursday, November 19, 1998 at 6:30 P.M. at the Memorial Lutheran Church at 10th & Veneta. The Program will include a presentation on Block Watch; an awards ceremony for Larry Dickerson; and a discussion on Emergency Preparedness. Mr. Overson reported on the United States Roller Hockey team, and reminded the public that 6 of the 10-member team are from the Bremerton area. On Sunday they defeated South Africa 11-1; on Monday they tied with England 3-3; and this evening they are playing Angola. Mr. Law thanked all the people who called him and sent cards showing concern about his health this past week. President Farr reported it was nice to be back after a recent trip to the Washington Coast. LEGISLATIVE ASSISTANT REPORT A response was provided to a list of questions asked by Del Knauss at the October 28, 1998 City Council meeting: 1) What is the cost for sidewalk improvements, bulb outs and lights along Burwell Street? Approximately $594,000, which also includes the cost of landscaping and storm drainage adjustments required for the bulb outs. The total contract cost for the Burwell Street improvements is currently $1,194,000. On this stage of work, all construction costs, including construction management, are being paid for by a combination of Federal Highway Administration and State Transportation Improvement Board funds. There are no City Arterial Street Funds being used for this stage of work. City funds will be used in future stages. 2) Will this Council take steps to change the Council Rules & Procedures to stop Council from taking action on initiative items that are on the ballot? Per the City Attorney, RCW 42.17.130(1 ) permits elected legislative bodies to consider and vote upon ballot propositions. The action of the Council must be structured as required by that statute. The City Council is considering whether to address Council Rules with clarifications and updates involving several of the provisions. The Council would likely consider the Public Recognition Rule, and addressing ballot propositions during a review. It is a policy decision for the Council to make. 3) Is the parking lot behind City Hall supposed to be used for political campaigning since it is City property? The response to this question assumes that the issue is the presence of campaign signs in Council Member(s) private vehicles parked in the City parking lot. Again, the relevant statute is RCW 42.17.130, which prohibits any public official or public employee from using public facilities to further a campaign or ballot issue. Since the signs are within the private property of the Council member, there is no cost or involvement of the City, and the TAPE #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 3 of 7 private vehicle is only temporarily in the City parking lot, it appears there is no violation of the code. 4) Since the County is trying to find a way to set the Commissioners pay and have rulings and advice from the Attorney General, doesn't the Council feel they should get higher legal advice? The City has reviewed the issues with Municipal Research on several occasions within the last two years. The City has determined to alter its process in order to eliminate any possible concern relating to the setting of the City Council's salaries. The City believes the issue to be resolved. 5) When will the City know whether tax share from the County is going to be severely low, and what steps are being taken to cover any shortfall? The 1999~2000 preliminary budget shortfall has been made up by a combination of reducing supplies and services as well as some minor reduction in staffing which was achieved through attrition and not layoffs. 8A - MOTION TO AMEND THE LODGING TAX ADVISORY COMMITTEE MEMBERSHIP, #AB98-250 Resolution No. 2666, section 1 states "...in the event a member becomes incapacitated...the member's organization may appoint a designee to serve... until the City Council appoints a new member." Due to the passing of Mr. Russell Nickerson, Mr. Lyle Nelson has been requested by the Bremerton Naval Museum to represent their interests. Mr. Nelson has been serving in this capacity since August 1998. It is recommended that the City Council appoint Mr. Nelson to the Lodging Tax Advisory Committee by Motion. Mrs. Arends, Chairman of the Lodging Tax Advisory Committee, stated that Mr. Nickerson was a valued member of the Committee, and a very brave person who continued to serve even when seriously ill. After his passing, Mr. Lyle Nelson replaced him on the Committee, and has also done an excellent job. She recommends Council pass this Resolution. Mr. Law added that he has known Mr. Nelson for a number of years, and believes he will be an asset to the Committee. #0390 MISICIU (Montgomery/Arends) Motion to approve the appointment of Mr. Lyle Nelson and amend the Lodging Tax Advisory Committee membership. 9A - ORDINANCE (FIRST READING) LEVYING PROPERTY TAXES FOR COLLECTION IN 1999, #AB98-251 The City's property taxes are levied on an annual basis through passage of an ordinance. The proposed ordinance will implement a general property tax levy at the statutory rate limit and special levies for EMS and bond redemption at rates previously authorized by the voters. The State Department of Revenue, via the County Assessor's Office has provided the language of the ordinance, in order to comply with the provisions of Referendum 47. TAP E #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 4 of 7 Rich Hanna, City Treasurer, explained that this is the first of two ordinances required under Referendum 47 to levy up to the 106 Levy Limit. With a passage by a simple majority of Council, this ordinance levies up to the first threshold limitation on the City's authority to levy property taxes, which is limited to 1998 property tax revenue, plus a percentage increase equal to the change in the Implicit Price Deflator (IPD). This is a measure of inflation similar to the CPI, but at a more conservative rate, which is .85 percent. Passage of this ordinance will levy property taxes up to that limit. Mr. McConnell was under the impression that the tax levy rate was going to be the same as last year, so he questioned the .85 percent increase. Mr. Hanna explained the limitation under Referendum 47 is not the only one of the limits that State Law places upon the ability of the City to levy property taxes. The other constraint is the State Statute placing an absolute limit on the maximum rate that a City is allowed to levy, which for Bremerton, would be $3.325 per thousand dollars of assessed valuation. Presently, the City is at that limit for 1998. The new preliminary assessed value numbers received from the County Assessor show that the assessed valuation for the City may actually go down. Mr. Law asked if a person's property remained at the same assessed value, there would not be any difference in the tax that individual would pay?. Mr. Hanna stated that as far as what the City would levy, that was correct, but he reiterated that the City is only one of a multitude of tax entities allowed to levy property taxes. Mr. Reed asked why the City was proposing this ordinance, and what would happen in the event this ordinance does not pass? He also wanted to know if the City was adding the increase because it is allowable or just because the City wants to levy all it could? Mr. Hanna responded this ordinance is the Legislative action, which levy's property taxes for 1999, and the City cannot tax without it. The increase is being added because it is allowable, and the City wants to levy all that it can, which is the way the ordinance is worded. #0656 M/SIC (Montgomery/Arends) Motion to approve ordinance (first reading) levying property taxes for collection in 1999. Vote on Motion: In Favor: Arends, Montgomery, Shepherd, Overson, Law McConnell, Olsen, Law, Farr Oppose: Reed Motion passed. 9B - ORDINANCE (FIRST READING) AUTHORIZING THE LEVY OF PROPERTY TAXES AT A RATE IN EXCESS OF THE INCREASE IN THE IMPLICIT PRICE DEFLATOR, #AB98-252 TAP E #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 5 of 7 The requirements of Referendum 47, passed by the voters of the State in 1997, require that the City Council pass by super-majority a separate action stating their intention to levy property taxes at a rate greater than the change in the Implicit Price Deflator, IPD. For 1999 taxes, the change in the IPD is .85%. If this ordinance is not passed by a vote of at least 6-3, the growth of future tax levies will be limited by this rate of change. Rich Hanna, City Treasurer, explained that this was the second of the two ordinances required under Referendum 47 to levy up to the 106 percent Levy Limit. He further explained that because the City is currently at the statutory maximum for property tax levies, the effect of the passage or non-passage of this ordinance on the 1999 property tax revenue is zero. The only advantage in passing this ordinance is that the City will reserve that authority to "cover" the balance of that 6% increase in some future year should the assessed valuation begin to increase rapidly. In his opinion, this is not very likely to occur; however, it is a decision to be made by the City Council. Elizabeth Buell asked for clarification on the definition of the "Implicit Price Deflator". Mr. Hanna stated that it is a measure of inflation, similar to the Consumer Price Index. He explained the affect of this ordinance is to increase the property tax revenue to the City from the current .85% increase over the 1998 revenue level (:which is approximately $4 million) to a maximum of a 6% increase over the 1998 revenue to the City. Mr. McConnell asked which year this tax levy would apply, and would it be reserved for a one-time use, or used each and every year. In order to help explain what would happen, if the City passed both ordinances this year, Mr. Hanna gave a hypothetical example. If in the year 2000, the City's assessed valuation increased by 20% over 1999, the City would be constrained by the change in the IPD, with the passage of the first ordinance, but could increase the property tax revenue to the City up to a maximum of 6% with the passage of the second ordinance. There would be an additional 6% carried forward from 1999 that the City was not able to use, and could now use at the Council's discretion. However, if the ordinance does not pass, the City would be able to increase property tax revenue up to 6% over 1999, but no further. Mr. Law asked if this only goes back two years, or is this 106% accumulative back to 1985. Mr. Hanna explained that the statute says "... of the highest amount of regular property taxes that could have been lawfully levied in the City in any year since 1985", but in practical terms, 1998 was the City's largest allowable levy in that time span. It is a one-time 6%. Mr. Overson felt that the Treasurer would not propose this ordinance if it was not in the best interest to the City, but also noted that City Council passes the actual levy amount, not the rate, each year. This ordinance is not changing anything currently, but simply TAPE #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 6 of 7 provides the authority to change it, if it would benefit the City. #1315 M/SIC (Montgomery/Overson) Motion to approve ordinance (first reading) limiting the City's levy increase to 106% of the 1998 levy. Vote on Motion: In Favor: Shepherd, Arends, Montgomery, Overson, Farr Oppose: Reed, Olsen, McConnell, and Law Motion failed. 10A - PUBLIC HEARINGS ON ORDINANCE ('FIRST READING) FOR SHERIDAN HEIGHTS ANNEXATION 75% PETITION, #AB98-253 A legally sufficient petition, representing 75-percent of assessed value of real property within the Sheridan Heights area, has been secured. The area proposed to be annexed has been modified by staff to represent not only an area represented by sufficient signatures, but an area that complies with the state requirements for annexation. A public hearing shall be held before City Council, in accordance with RCW 35.13.140. Any interested persons may appear and voice either approval or disapproval for this annexation. Following the hearing the Legislative body must approve the ordinance annexing the area as proposed and establishing land-use designations on the first reading and pass it on the second reading; or reject the annexation. Terrie O'Neill, Municipal Services Coordinator, stated approximately 400 people live in the 80 acres that make up this area, which contains dense population, as well as opportunities for development within the City. Larry Branch and E.L. Sturdivant were in attendance at the meeting, and spoke in favor of the annexation. Christopher & Susan Bell sent an e-mail voicing their support. Janice Smith lives adjacent to the proposed annexation area, and felt strongly that her area should be included. Mr. Reed asked what dictates the boundaries for an annexation. Ms. O'Neill explained that there is a list of criteria contained in the State statute, which define what can and cannot be annexed. In addition, there must be 75% of the assessed value based on the County. For now, this was the largest petition area that could be done while keeping in compliance with the State. #1733 M/S/C/U (Montgomery/OIsen) Motion to approve ordinance (first reading) annexing the area known as Sheridan Heights and fixing the effective date of annexation. 10B - PUBLIC HEARINGS ON ORDINANCE (FIRST READING) FOR CAMP McKEAN ANNEXATION 75% PETITION. #AB98-254 TAPE #1580 City Council Reg. Mtg. Minutes November 10, 1998 Page 7 of 7 A legally sufficient petition, representing 75-percent of assessed value of real property within the Camp McKean area, has been secured. A public hearing shall be held before City Council, in accordance with RCW 35.13.140. Any interested persons may appear and voice approval or disapproval for this annexation. Following the hearing the Legislative body must approve the ordinance annexing the area as proposed and establishing land-use designations on the first reading and pass it on the second reading; or reject the annexation. Terrie O'Neill, Municipal Services Coordinator, stated the Department of the Navy owns this area. She explained the difference between this annexation and the previous annexation, is that this is going to be by "default zone", which means that zoning has been assigned administratively and there will be a review in 60 days. This is because the use will remain the same, which is a park and recreation facility. (Councilman John Law left the Council Meeting at 6:15 P.M.) #1900 MISICIU (Montgomery/Overson) Motion to approve ordinance (first reading) annexing the area known as Camp McKean and fixing the effective date of annexation. With no further business, meeting adjourned at 6:25 P.M. City of Bremerton PJ/DF/Is cc: Normal Distribution FileNault