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HomeMy WebLinkAbout07/16/97 TAPE #1477 CITY COUNCIL MEETING MINUTES JULY 16, 1997 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 16, 1997, at 5:30 P.M., with Council President David Farr presiding. Council members present were Bob Winters, Carlos Montgomery, Sherril Huff-Menees, Richard Neville, Lon Overson, John Law, Cecil McConnell, and Al Colvin. Also present were City Attorney Ian Sievers and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Farr and Invocation given by Reverend Jon Vail of Victory Chapel Church Of God. President Farr made the following announcements: (1) City Council Study Session - July 19, 1997, 10:00 A.M. - 12:00 P.M., in the Council Conference Room. Topic of discussion: Sinclair Landing Update and Pending Agreements. (2) City Council Study Session - July 21, 1997, 5:30 P.M., in the Council Conference Room. Topic of discussion: Telecommunications Ordinances; (3) City Council Study Session - July 23, 1997, immediately following the City Council meeting, in the Council Conference Room. Topic of discussion: Sinclair Landing Update and Pending Agreements; (4) City Council Study Session - July 30, 1997, immediately following the City Council meeting, in the Council Conference Room. Topic of discussion: 1997 - 2002 Capital Improvement Plan; and (5) City Council will hold an Executive Session immediately following this Council meeting to discuss "Litigation and Claims". CONSENT RGENDA A. Minutes of Meeting -- July 2, 1997 #AB97-157 B. Bid Award Recommendation - Purchase Of Ductile #AB97-158 Iron Pipe For 1997 - United States Pipe C. Resolution #2617 Setting Hearing Date Of #AB97-159 August 6, 1997, For Vacation Of 20 Foot Portion Of Right-Of-Way On Marine Drive #0060 M/S/C/U(McConnell/Montgomery) to approve the Consent Agenda as presented. TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 2 of 17 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. #0080 M/S/C/U(Colvin/Montgomery) on July 16, 1997, the Council does approve for payment those vouchers included and further described as follows: 210704 through 210942 in the amount of $345,450.40. COUNCIL MEMBER REPORTS Mr. Winters reported today he attended a meeting regarding a hydroplanes exhibition in Sinclair Inlet as part of the Blackberry Festival. He asked Mayor Horton to comment during her report on two recent lawsuits against the City: (1) the Garcia 35 million dollar lawsuit; (2) the Municipal Court employees lawsuit for 7 million dollars. He attended the well organized "Fire Department On Parade" event, which was hosted by Council Districts #1, #2 and #3, and offered adults and children the opportunity to learn more about fire safety. Based on his knowledge of the excellent work Fire chief Mick McKinley has accomplished over the past several years, he suggested the proposed Regional Fire Training Facility be named after Chief McKinley. Mr. Montgomery announced Council Districts #6, #7 and #8 will hold a joint Neighborhood Meeting on July 31, 1997, 7:00 P.M., at the School District Administration Office, 134 N. Marion Avenue. Mayor Horton and City Engineer Randy Witt will be guest speakers at that meeting. Mr. Law reported on a very successful "Fire Department On Parade" event, which was held at Garguile's Red Apple on Perry Avenue. He thanked the Bremerton Fire Department for their time and effort put into the preparation and hands on display event, which was highlighted by the youngsters lining up and each getting a chance to extinguish a small fire with a fire extinguisher. He thanked Garguile's Red Apple for providing the free popcorn and soda pop and compliments to Mentor Construction for the donation of a popcorn machine. Lastly, Councilman McConnell served as an excellent "popcorn man", Councilman Colvin was the event advisor, Councilman Winters handled "crowd control", Council President Farr helped consume the popcorn, and Niva Law handled grounds clean up. He is looking forward to the next Fire Department On Parade in 1998. Mr. McConnell reported people have shared their concern over the striping of Sylvan Way and he wanted to assure them that the center line striping will be replaced and the left turn pocket at the TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 3 of 17 Kitsap Regional Library will be replaced. He enjoyed the Fire Department On Parade event, but he was too busy handing out popcorn to take part in the fire extinguishing exercise. He also thanked Garguile's Red Apple and the Bremerton Fire Department. Mr. Colvin stated Councilman Law was responsible for getting Districts #1 and #2 involved with the "Fire Department On Parade" event, and Wayne Olsen assisted in representing District #1, which freed Councilman Colvin of any official duties other than eating popcorn and enjoying the festivities. He commended Council members John Law, Cecil McConnell, and Bob Winters for their involvement in this event. Mr. Farr urged residents of Council Districts #6, #7 and #8 to attend the joint Neighborhood Meeting scheduled for July 31, which will include refreshments. MAYOR'S REPORT Mayor Lynn Horton stated in response to Mr. Winters' request regarding the recent lawsuits filed by City employees, on legal advice it was highly inadvisable and not good business management to discuss litigation and potential litigation in public. Council will be fully apprised of details regarding litigation issues in Executive Sessions immediately following the Council meeting. Mayor Horton announced the Citizens Involvement Committee will host an Open House at the Bremerton Wastewater Treatment Plant on July 19, 10:00 AM to 2:00 PM, The purpose of this event is to allow the public an opportunity to observe recent improvements at the plant and Committee members and staff will be available to answer questions and provide tours. She commented on a recent video program produced by Terrie O'Neill showing the Brem-Air Disposal recycling recovery facility and anticipates Mrs. O'Neill will be producing a video showing the operations of the treatment plant for future airing on Channel 12. PUBLIC RECOGNITION Bob Sauter, VFW Post 3694 and Ladies Auxiliary, presented an award to the U.S. Marine Corps Security Force Company at Bangor for their outstanding and invaluable service to the Bremerton community and Kitsap County. The award was accepted by Major Sgt. Paul Siverson, representing the US Marine Corps Security Force Company/Bangor. Reverend Cleveland Williams, representing the Martin Luther King Jr. Scholarship Fund, reviewed the process whereby recipients of the Bridge Builder Award are chosen and the criteria used when selecting someone to receive that honor. He announced the 1997 recipient of the Bridge Builders Award is Mayor Lynn Horton. A TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 4 of 17 special souvenir booklet will be assembled with congratulatory messages to Mayor Horton and anyone wishing to include such congratulations can do so by faxing their messages to Al Colvin 4789-4271 or mail to P.O.Box 190, Bremerton, WA 98337. Presentation of that award will take place at the Constitutions Day Luncheon Meeting in September. President Farr extended his congratulations to Mayor Horton. Roy McInnis stated being a former Marine he was pleased about the recognition given to the Marine Corps Security Force Company/Bangor. He related a moment of personal embarrassment over a comment he made to Mayor Horton at an event honoring Reverend Cleveland Williams. He and his grandchildren enjoyed the Fire Department On Parade event and reminded Councilman McConnell that microwave popcorn cannot be popped in a regular popper! Rob Rupe, Westsound Cable Access, stated he might lose his job over what he was going to say, however, he felt he had to raise some issues before the Council. He talked about the formation of Westsound as a non-profit organization that would be the hub for the community to pull in funds from the County and the City and made available to the community. Westsound conducted an extensive search for a director and hired Doyle Detroit, who then created access under the guidelines developed by the Board of Conveners. The agency was under limited funds because the County was the only funding source, i.e. the City of Bremerton was involved in negotiations with TCI, which left a gap in the needed funding. It was his opinion that the City of Bremerton made demands on their resources that stretched them to the max. Over the course of time, the Westsound Board did not have the best interest of Westsound at heart and allowed the demands to be pushed and didn't take a stand that certain things could not be done due to lack of funding. Resulting action brought about the dismissal of Ms. Detroit, who was not aware of the back door politic food chain of this community. Westsound was designed to be a membership organization and the membership tried to deal with internal problems; however the City of Bremerton intervened and threatened to pull their funding. It was suggested that mediation be tried, which they did, but it failed due to the Board not responding. Now, a letter from Mayor Horton has been issued stating that Bremerton Cable Access TV would be re-instituted as of August 1, 1997. He asked the City Council to allow Westsound, as a membership organization, to deal with their own internal politics and give them time to develop that organization. Patricia Mathis, Westsound Cable Access member, stated she was a volunteer and a member of Cable Access for five years prior to the formation of Westsound. She requested an answer in writing from TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 5 of 17 the City Council to the following question: "Why City employees were allowed to meddle into Westsound financial and personnel issues, which is a completely separate not-for-profit organization? She believes such action would be in violation of State law. Carol Atkinson, Bremerton Main Street association, reported the first Concert on the boardwalk was a huge success and the next concert is scheduled for July 18, 8:00 - 10:00 P.M. Following further investigation and planning, it looks like there is a good possibility that there will be a hydroplane exhibition as part of the Blackberry festival. Jerry Powers, Bremerton Kiwanis, invited everyone to the Wings & Wheels Air Fair and Classic Car Show on July 20, at the Bremerton national Airport. Gates will open at 10:00 AM and the show begins at 1:00 PM. Following the Concert on the Boardwalk on July 18, at 10:00 P.M., there will be a Mig 17 flyover that includes a pyrotechnic display. Phil Heggen, Bremerton resident, reported that an added warning label is now required by the FDA on all fluoride toothpastes shipped after April 7, 1997, becoming consistent with bulk containers of fluoride chemical provided to cities and toothpaste manufacturers. These containers must be labeled "poison" with the skull and crossbones symbol for poison. He then went on to talk about the adverse affects fluoridated water has on some people, that various regulating agencies have covered up data that would substantiate that fluoride is harmful to humans and that it is not a deterrent to tooth decay. He believes that on a National level there are clear signs of corruption, fraud and cover-ups emerging, along with intimidation and persecution of scientists and other professionals who dare to speak out against fluoridation. He further stated that at the City Council Retreat held April 19, 1997, one Council person (it sounds like Carlos Montgomery) told Dr. Willa Fisher "...but what's happening as I see the trend, is very possibly that if this issue will be put to a public vote, I would suspect, the way it is going, if that is the case, it will not be voted in because your program, your presentation (i.e. the proponents) is not as convincing..." He emphasized if the City council ignores the warnings of the potential dangers, there will be legal action brought against the City. Bob Jaenicke, Bremerton resident, asked that he be provided a written response as to why the City closed 11th and Kitsap Way? 7A - BUDGET ADJUSTMENT - REAL ESTATE EXCISE TAX FUND 109 - REMEDIATION WORK - EVERGREEN PARK~ #AB97-160 A Professional Services Agreement was entered into November 20, 1995, with Failure Analysis Associates, Inc., for the initial phase of the remediation of properties around Smith Cove included in the TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 6 of 17 Evergreen Park expansion area. The fees under the agreement as amended March 26, 1996, are a maximum amount of $272,647. The 1996 budget of $150,000 was established in the Real Estate Excise Tax Fund for this project. Expenditures through 1996 total $129,515 including approximately $4,000 in legal expenses. A 1997 Budget to complete the initial phase of work has not been established. Approval by the Council of the attached Budget Adjustment in the amount of $150,000 is requested to complete the remaining scope of work included in the agreement. Gene Sampley, Public Works and Utilities Director, stated in response to Council's request for additional information, a memorandum was prepared by Rich Hanna, City Treasurer, explaining the status of the fund, projected revenues and projected cash balance. Public comment - none. Mr. Overson questioned if the proposed use of Real Estate Excise Tax was an allowable expenditure? Mr. Sampley stated he recalled that question was raised during preparation of the 1997 budget and it was determined, at that time, that it was an allowable use. #1585 M/S/C/U(Montgomery/Winters) to approve Budget Adjustment #97-19 to the Real Estate Excise Tax Fund 109 in the amount of $150,000 to complete the initial phase of the remediation work for Evergreen Park expansion. 7B - SYLVAN WAY STREET IMPROVEMENTS INTERLOCAL AGREEMENT WITH KITSAP COUNTY AND BUDGET ADJUSTMENT #97-23, #AB97-161 The County authorized the City of Bremerton to construct curb, gutter, sidewalk, pavement and storm drainage improvements to the County right-of-way on Sylvan Way from Petersville Road to Olympus Drive. This work is being performed in conjunction with the City Sylvan way Street Improvement Project currently under construction. Change Orders addressing this work were approved by City Council on June 25, 1997. To receive reimbursement for this work from the County, an Interlocal Agreement needs to be executed. The attached Interlocal Agreement with an estimated amount of $57,000 and a not-to-exceed amount of $60,000 will provide reimbursement for this work. A budget adjustment is necessary to reflect the revenue. Staff recommends approval of the Interlocal Agreement and Budget Adjustment. Lynn Price, Senior Engineer, briefly reviewed the information in the Summary Statement. TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 7 of 17 Roy McInnis, Bremerton resident, commented that the new resurfacing of Sylvan Way is beautiful. He questioned the necessity for a budget adjustment? Mr. Price stated when the project was originally set up it did not include the additional work requested by the County. The $60,000 identifies an adjustment to the original project budget, which will be reimbursed to the City by Kitsap County. Mr. McConnell questioned why some of the asphalt was being removed from the street between Petersville Road and Olympus Drive? Mr. Price noted the County has been doing some adjustments to the manholes to bring them up to grade. Mr. McConnell further clarified the importance for a budget adjustment in this instance since it allows increasing the appropriate budget with the infusion of funds. Mr. Winters commented that not only does Sylvan Way look good, but the paving project from Burwell to the Warren Avenue Bridge also looks great. #1823 M/S/C/U(McConnell/Montgomery) to approve the Budget Adjustment #97- 23, and the Interlocal Agreement with Kitsap County to be reimbursed for improvements made on Sylvan Way and authorize and direct the Mayor to execute the agreement. 7C - BID AWARD RECOMMENDATION FOR ASBESTOS REMOVAL PHASE it OYSTER BAY ACQUISITION PROPERTY STRUCTURES (19 BUILDINGS), #AB97-162 TO approve contract price of $24,998.13 to KCB for the removal of asbestos contamination within the structures in phase 1 ("H" Street to north end of "E" Street) of the Oyster Bay Acquisition Properties. Paul Lucas, Administrative Analyst, explained the City cannot destroy the houses or use them for fire training for the Fire Department without removing any asbestos. This recommended bid ($24,998.13) is lower than the estimated cost ($27,500). Public comment - none. Mr. Winters questioned why the Agenda Bill was published in the Agenda Packet without the price or company identified. Mr. Lucas explained the bids were opened late afternoon on Monday, July 15, 1997, and the Agenda Packet was distributed on July 11; however he was assured it would be acceptable to provide the specific information at the Council Committee meetings on July 15 and 16. #1956 M/S/C/U(Montgomery/Winters) to approve KCB as iow bidder to TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 8 of 17 commence removal of asbestos, and authorize the Mayor to execute contract. 8A - RESOLUTION #2614, AUTHORIZING MASTER URBAN TREE PLAN AS REQUIRED BY THE MUNICIPAL TREE ORDINANCE #4553 OF THE B.M.C. 13.10.070t #AB97-163 In 1996, the city amended the Municipal Tree Ordinance (#4553) of the Bremerton Municipal Code 13.10. this ordinance calls for the development of a Master urban Tree Plan based upon an inventory of existing municipal trees in these areas and an evaluation of the site and space factors, which will aid in the determination of those trees best suited for Bremerton's urban environment and result in the development of a long-range plan for future planting and maintenance. The Parks and Recreation Department utilized the services of Kevin McFarland, Sound Urban Forestry, to accomplish the inventory in which he also identified location, species, size, condition, work needs, damage, trunk damage, utility line and site. Then, working with Jim Trainer, Parks Arborist, and Tom Cressman, Park Maintenance Supervisor, developed the long range plan for planting and maintenance. Jim Spencer, Parks and Recreation Director, stated the proposed plan was presented to the Council for their review in a Study Session on July 7, 1997. From his vantage point, this is very comprehensive and well thought out plan that allows the City to be pro-active in dealing with urban forests. He was pleased to report the City's urban forest is in fairly good health and the plan identifies those areas that need to be targeted for either removal or improvements. He commended Kevin McFarland for doing a outstanding job and the City's Urban Forester Jim Trainer for his assistance to Mr. McFarland during this process. The Plan is in a data base and can be used for many years into the future. He thanked the Department Of Natural Resources (DNR) for the grant funding for this project. Additionally, the DNR has been instrumental in providing grant funding to allow the city to make significant improvements to its urban forest in the form of hazardous tree removal and a number of plantings throughout the City. Public comment - none. Presi4ent Fart commended those involved in the presentation made before the Council at the July 7th Study Session. Mrs. Huff-Menees stated she was very impressed with the Study Session presentation by Mr. McFarland and Mr. Trainer and the City TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 9 of 17 was fortunate to utilize grant funding to develop this plan and accomplish the urban forest work that has already been completed. #2155 M/S/C/U(Huff-Menees/McConnell) to adopt Resolution 32614 establishing the Master Urban Tree lan for the city of Bremerton's trees and shrubs planted in public areas. 9A - PUBIC HEARING - RESOLUTION #2615, REGARDING RECOVERY OF FEES FOR REMOVAL OF GARBAGE AND DEBRIS FROM THE PROPERTY LOCATED AT 1333 CARR BOULEVARD, #AB97-164 On May 15, 1997, the City removed garbage and debris from the property located at 1333 Carr Boulevard, after the owner, Sheri L. Denham, failed to do so as ordered by the Building Official. The cost charged to the revolving abatement fund for this action totaled $2,072.15. Council must now decide if the fees are just and reasonable. Judy Johnson, Building Development Permit Manager, stated the City initiated action on this site starting in February 1997, which included an on site inspection in March and removal of the garbage and debris on May 15, 1997. Public comment - none. Mr. Winters noted the subject site is located in District #9 and this was not the first time there had been a problem with accumulation of garbage and debris at that site. Mr. Neville expressed concern over the fact 30 yards of garbage, 30 tires and two appliances had to be removed by the City. Ms. Johnson noted there were additional appliances removed. Mr. Law pointed out until the Administrative fee is added to the cost of abatement, the property owners are getting a "cut rate" for dumping over what residents would have to pay at the landfill. #2323 M/S/C/U(Winters/Montgomery) to approve Resolution 32615, ordering that the fees incurred for the removal of garbage and debris from the property located at 1333 Carr Boulevard be collected as reasonable abatements costs and become a personal judgement against the property owner, which if not collected within 30 days shall become a lien against the property. 9B - PUBLIC HEARING - RESOLUTION #2616, REGARDING RECOVERY OF FEES FOR REMOVAL OF GARBAGE AND DEBRIS FROM PROPERTY LOCATED AT 3811 9TH STREET, #AB97-165 On June 11, 1997, the City removed garbage and debris from the property located at 3811 9th Street, after the owner, LaCruz TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 10 of 17 Foundation, failed to do so as ordered by the Building Official. the cost charged to the Revolving Abatement Fund for this action totaled $569.30. Council must now decide if the fees are just and reasonable. Judy Johnson, Building Development Permit Manager, stated action on this site started in March 1997, and in May the property was posted with a 72-hour removal notice, which resulted in the City removing the garbage and debris on June 11, 1997. Roy McInnis, Bremerton resident, stated his support of this action and asked the City to inspect the property at 1108 Walnut Street for overgrown shrubs impeding pedestrian traffic on the sidewalk. Mr. McConnell asked if there was another disposal site for tires other than the landfill? Ms. Johnson stated she not aware of any other source; however, she would investigate it further. Mr. Colvin questioned if the fees imposed cover all the expenses incurred by the City, i.e., administrative etc.? Ms. Johnson stated the new $775.00 administrative fee that was recently adopted should cover those costs. #2539 M/S/C/U(Montgomery/Huff-Menees) to approve Resolution #2616, ordering that the fees incurred for the removal of garbage and debris from the property located at 3811 9th Street be collected as reasonable abatement costs and become a personal judgement against the property owner, which if not collected within 30 days shall become a lien against the property. 9C - PUBLIC HEARING - ORDINANCE (FIRST READING) REGARDING THE GRANT OF A NON-EXCLUSIVE FRANCHISE TO TCI CABLEVISION OF WASHINGTON, Culminating 18 months of negotiations, the City and TCI have agreed upon a Franchise Ordinance that grants TCI a non-exclusive franchise to operate a cable system within the City for the next 10 years. Highlights include: 1) a system upgrade to 75 activated channels within 36 months; 2) Public Access Channel support including studio, channel expansion, a monthly contribution of $1,734 and Council chambers equipment upgrade; 3) I-Net provisions to include development and future construction at cost. Kathleen McCluskey, Director Of Administrative Services, stated the following changes were requested by the City Council during the Council Study Session on this issue: (1) The franchise agreement would be a 10-year contract and reverting to 8-year if TCI does not have 50% implementation of the upgrade within 24 months; (2) Section 3.5 UNDERGROUNDING - added the wording: "at the lowest TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 11 of 17 possible cost. Additional changes are recommended: (1) Section 3.1 USE OF STREETS - added "TCI may make available to the City at no cost such pole, conduit, duct and other improvements for shared use. (2)Under Section 4.3E EMERGENCY ALERT CAPABILITY - the City has requested within six months an Emergency Alert system be provided at the City's Public Works Complex as well as from TCI's East Bremerton Headquarters. (3) Section 8.2A ANNUAL REPORT - the City had requested Audited Financial Reports for the City of Bremerton be provided; however, TCI does not have audited financial statements for specific areas; however, they do have them for broader areas, i.e. TCI West and other regional areas. Ms. McCluskey highlighted the following issues: (1) System Upgrade - the franchise requires an upgrade system capacity to 75 activated channels within 36 months. (If TCI achieves 50% of activation of that upgrade within the first two years, the franchise will stay at 10 years.) (2) Public Access Fundinq - the City felt TCI should continue to contribute ($1,734.00 per month) without passing the cost through to the public because it was part of the prior franchise and the City considered that an imbedded cost. In addition, there will be a 21 cent pass through, which is similar to what Kitsap County is passing through for Public Access and Institutional Network. (3) Financial Issues - TCI will pay $55,000.00 towards the refurbishing and upgrading of equipment in the City Council Chambers. Many of the recent broadcasting problems were directly related to 10-year old equipment. The $55,000 will also cover part of the consulting fee. TCI will also pay an additional $5,000 Application Fee, which is required by the City for all franchises. There will be recovery of the $55,000 through the 21 cent pass through. (Note: on July 15, Councilman Montgomery and City staff went on an informational tour of the City of Tacoma and Pierce County cable televising facilities.) (4) I-NET is the institutional network, which is designed to provide non-entertainment either through closed circuit for schools and government. Typical uses are computers, video conferencing, training, etc., and are not offered to residential customers. The City is still not sure what is wanted in the way of an I-Net; however, language has been negotiated that would allow the City to pay the incremental costs of any I-Net that is developed in the future. As TCI makes the upgrade, they will inform the City of their progress and if it makes sense financially, the City will tag onto that work to create the I-Net. TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 12 of 17 (5) Programming - under FCC Rules, the City is not allowed to designate programming, but can designate broad categories of programming that they must provide programming within each of those categories. If TCI makes changes in programming, they must also give 30-days notice to the City and subscribers. Under the proposed franchise, TCI must also provide the City with data that formed the basis for their decision to make program changes. (6) Rates - the City does not regulate rates, the FCC sets "benchmarks", which the City does monitor, and will continue to do so. However, low-income senior and low-income disabled rates were negotiated. When the basic rate hits $12.00 per month, there is a 30% discount for those who meet the criteria, which is the same Federal criteria used for Utility rates. (7) Customer Service - the FCC provides for customer service requirements and standards, such as how quickly the phone is answered. The City does have the right to review their records, look at complaint logs, set hearings for non-compliance that could create revocation-of-compliance of a franchise, if they are not in compliance. When requested, TCI is required to refund for outages over 24-hours and they must have a Customer Service Manual available to subscribers and the City. Roy McInnis, Bremerton resident, stated over the past several years he has expressed his preference for a Black Entertainment Channel (BET) when TCI issues have been before Council. He will continue to make that request until the Bremerton community has the opportunity to view that programming. Althea Doufglas, Bremerton resident, stated there is a competitor to TCI that carries a Black Entertainment Channel. Four years ago when she asked TCI about a Black Entertain Channel, they gave her an explanation they needed a specific number of people interested in that programming; however, no one has been successful in getting that channel added. She believes there is a local demand for the Black Entertainment Channel and hoped the TCI officials in the audience will listen to their subscribers. Patricia Mathis, Westsound Cable Access member, asked if the contract included language whereby the City could ask for a second access channel, which would be provided within 60-days upon request. Kathleen McCluskey stated in response to Ms. Mathis's question, the issue of a second access channel is included and upon request must be provided within 60 days. Future channels will only be provided TAPE #1477 City Council Reg. Mtg. Minutes July 16, 1997 Page 13 of 17 when use standards can be met. TAPE #1478 Patrick McDonald, TCI Manager, stated TCI has added the Black Entertainment Channel to over 50% of their subscribers in their service area. This franchise agreement process allows TCI to build a long term lease in the Bremerton area and to make a similar capital investment that they have made in Kitsap County, to bring on additional services such as BET, History, Scifi, ESPN, etc. He anticipates completing the upgrade in a 2-year project. Mr. Winters stated he had previously requested the Administration to provide him with a list of City owned equipment. Ms. Mccluskey stated the City's Purchasing Agent is currently preparing the inventory list, and Bruce Stier, Interim Director of Westsound is also preparing an inventory of the new equipment that was purchased with funds provided by Kitsap County. Mr. Winters questioned what would the City do with the $55,000 if it is determined the City has all the equipment necessary for cable access broadcasting? Ms. McCluskey explained the $55,000 will go into upgrading the broadcasting equipment for the City Council Chambers. She pointed out the City owns all of the existing equipment, which is 10-years old or older, in the Council Chambers. Some of the equipment in the TCI studio and mobile van belongs to the City and some to TCI. That equipment will also be replaced, but will be done over time and funded by the City and Kitsap County. Mr. Winters questioned how will the City dispose of equipment that will no longer be used once the upgrade is completed? Ms. McCluskey stated if it is in working condition, it will go to the TCI studio or wherever it will most effectively used; or it may be surplused and sold or given away to a non-profit organization. Mr. Winters questioned if, under Section 6.1 PEG Access, the City will have complete control and management of the Public/ Education/Government. Ms. McCluskey stated it means the City can undertake the management or contract it out. Mr. Winters asked if the viewing audience can expect, under the new agreement, improved quality, improved channels and entertainment at the same or lower cost? Mr. McDonald stated he could respond with a "yes" for improved quality and improved channels and entertainment; however, it was difficult to say it would be at the same or lower cost because they are currently under a regulatory situation where they examine the costs, submit their recommendations, and follow a benchmark by the FCC, which are very defined variables in those calculations. What that will compute June of 1998 is not known at this time; however, it did result in lower rates for some of the tiers for June 1997. Mr. Winters stated he hopes that in this new franchise, the rate payer gets a better deal. Mr. McDonald stated he believes they will. TAPE #1478 City Council Reg. Mtg. Minutes July 16, 1997 Page 14 of 17 Mrs. Huff-Menees clarified that the issue before Council is the ordinance, and that discussion needs to center on the contract. Mr. Overson referred to Section 4.3 regarding the System Channel Capacity Upgrade, and asked if fiber optics will be installed within 36 months? Mr. McDon&ld stated Section 4.3 specifies a minimum of 75 activated channels and fiber optics will be involved. In other past projects, the design they began with is not always the design they finish with as more economic means of generating more service and more channels at lower rates are discovered. For comparison, he discussed the capacity of the present "box" system being used in the County, its service level, and the customers desire to have the option to customize a cable package with basic and expanded options. When the upgrade is completed, a "Black Box" or a "digital compression box" will replace the addressable boxes that are currently being used throughout the area. The goal is to have similar packages at a similar price. Mr. McConnell asked the City Attorney if Section 2.2 regarding the Franchise Term, would stand up to any legal challenges. Mr. Sievers stated the formula used was clear, with no ambiguity, and would be enforceable. Mr. Colvin asked about the 21 cent pass-through, and what was the current charge accrued to the City? Ms. McCluskey stated right now there is a 7% tax that comes back to the City, which the City will continue to receive, but the 21 cents will be additional, amounting to approximately $20,000 per year. Mr. Montgomery stated in his opinion 36 months to get all the channels was too long, and the 10-year franchise reduced to 8 years if they don't get within 50% is too long of a time. He thinks TCI could do a better job if they would just "get to it". Mr. Neville stated this has been a long, drawn out process, but he believes language in the contract will hold TCI in check with the customers, such as requiring Quarterly Reports to monitor customer service relations. He further asked if a new Customer Service Agreement and Manual would be mailed to subscribers; and would surveys be conducted when programming changes are anticipated? Mr. McDonald stated the Manual is revised on a yearly basis, which is mailed to every affected subscriber; and they will continue to utilize customer survey information whenever a programming change is being considered. Mr. Neville stated he was concerned that in the past telephone surveys did not appear to reach a wide audience, since they were usually conducted during working hours when a majority of citizens were not available to participate. He suggested a mail survey would reach a far greater number of subscribers. Mr. McDonald responded that mail surveys were TAPE #1478 City Council Reg. Mtg. Minutes July 16, 1997 Page 15 of 17 available, and they are planning to use them. The phone surveys are conducted by a third party and statistically designed to be accurate with a low +/- rate. Mr. Neville wanted it clarified that there would not be a repeat of what took place with C-Span and the Canadian channel. Mr. McDonald stated that was correct. Mr. Neville further questioned if the problems with channel 19 would be fixed with the new system? Mr. McDonald stated the problem with channel 19 is that it is not a video signal, so current problems will be limited greatly, but not completely eliminated because of varying degrees of quality in the equipment owned by the customers. He clarified that FCC technical standards require that different locations be monitored for picture quality every six months and City staff is welcome to participate. He addressed the previous concern regarding two years being too long to complete the re- build, and explained how it is a difficult process to design, implement, and complete a re-build within a specific time frame. Mr. Neville stated he does not subscribe to expanded cable because of an incident that happened a couple of years ago when he used a Pay-For-View service and a dispute over that service occurred, which was not handled professionally. He asked if the basic tier would have 43 channels without the use of a "black box" when the upgrade is implemented? Mr. McDonald stated the subscribers will have the same 43 channels that Kitsap County has now or will have in the future. Mr. Neville asked if a subscriber does not feel TCI has dealt fairly with them over a issue, is there someone in the City they can contact to seek resolution? Ms. Mccluskey stated the initial contact should be made to TCI to work out any problem, but when something is not resolved after going through that process they can call the Administrative Services Office 478-5290 asking for Kathleen McCluskey or Paula Johnston. President Farr referenced Section 6.1F TECHNICAL QUALITY and asked if that was a new section in the contract and if it meant that if technical difficulties are experienced during broadcasting of City Council meetings the problem rests within the City owned equipment? Mr. McDonald stated yes, and recent problems were traced to the City's equipment and how it was set for transmission. The distribution path is clean and delivers a good picture. TCI worked closely with the City to correct the problems that were recently experienced. Mr. Winters asked Mr. McDonald how close was TCI to the 50% digital analog or digitally compressed system in Bremerton? Mr. McDonald stated there are some design proposals in place, but the funding to accomplish the work follows the securing of this agreement, which gives them the time frame to make that capital investment. Currently, TCI operates a 38 channel system and an investment of 10 million dollars is needed to upgrade that system; however, he estimated that currently there are approximately 5% completed TAPE #1478 City Council Reg. Mtg. Minutes July 16, 1997 Page 16 of 17 because of the design of the Kitsap County plant. Mr. Winters complimented Mr. McDonald on their corporate management decision to utilize and maximize fiber optics. Mr. Montgomery stated he disagreed with Mr. McDonald's comment that it would take at least two years to upgrade the City's system. He accompanied staff on a tour of up-to-date studios at Pierce County and the City of Tacoma. He concurs that the City's equipment is old and needs to be replaced and the arrangement of the City Council Chambers is not the best for broadcasting Council meetings. He believes the $55,000 will be utilized to its highest potential. Mr. Overson stated he believes the subscribers will be well treated under this contract and provided high quality services. He would like to see those points put into Section 4.3 as part of the contract so that we, later on, fully understand the commitment and how it will be achieved. He was willing to support the contact as proposed, but at second reading of the ordinance he wanted to see some agreements included that better defines what Mr. McDonald quoted during this discussion. Mr. McDonald referenced Section 5.5 PARITY OF SERVICE AND RATES and pointed out TCI cannot say exactly what subscribers wish, the exact channel numbers and the delivery mechanism that they would like to have 1-3 years from now. He believes TCI has been specific in Section 5.5 to bring those concerns together and also have the looming consumer demand dictate what the channel numbers, packages and numbers will be. Kitsap county will be going through tremendous change over just a two-year time frame and Bremerton will be brought in over that time frame as well. Mr. Law stated he will support this proposal on first reading of the ordinance, but he would like Mr. McDonald to talk with his technical and production staff and see if the 36 month target date could be reduced. He was not sure how he would vote at second reading of the ordinance, if the same target dates remain as proposed at this time. Mr. Colvin commended Kathleen McCluskey and Patrick McDonald for their effort in developing this contract. He questioned if the City would make periodic review of the agreement? Mr. McDonald stated a review will be made every six months on the progress of the completion of the upgrade of service throughout the area. Mrs. Huff-Menees commended staff for their involvement in the development of the agreement, and Mr. McDonald on the exemplary job he does answering Council's questions. #1230 M/S/C(Huff-Menees/Colvin) to approve Ordinance, on first reading, and summary granting TCI Cablevision of Washington a non-exclusive TAPE #1478 City Council Reg. Mtg. Minutes July 16, 1997 Page 17 of 17 franchise to operate a cable system within Bremerton. Vote on Motion: In Favor: Winters, Huff-Menees, Neville, Farr, Overson, Law, Colvin Opposed: Montgomery Abstain: McConnell Motion carried. President Fart thanked the TV camera crew for their services: Bob Neal Rupe, Patricia Mathes, and James Nobel, Jr. With no further business meeting adjourned at 7:50 P.M. City of Bremerton PJ/DDF/me cc: Normal Distribution File/Vault