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HomeMy WebLinkAbout07/30/97 TAPE #1480 CITY COUNCIL MEETING MINUTES JULY 30, 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 30, 1997, at 5:30 P.M., with Council President David Farr presiding. Council members present were Carlos Montgomery, Sherril Huff-Menees, Richard Neville, Lon Overson, John Law, Cecil McConnell, and Al Colvin. Councilman Bob Winters was absent. 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 Pastor Rick Long of Neighborhood Christian Center. President Farr made the following announcements: (1) Council held an Executive Session prior to the Council meeting to discuss "Labor Negotiations"; (2) Council will hold a Study Session immediately following the Council meeting to discuss the "1997 - 2002 Capital Improvement Program; and (3) Council will hold their monthly Study Session on Monday, August 4, 1997, 5:30 - 7:30 P.M. Topics of discussion: "Puget Sound Water Quality Action Team,' and "sinclair Landing Update and Review of Agreements. CONSENT AGENDA A. Minutes of Meeting -- July 16, 1997 #AB97-169 #0036 M/S/C/U(Neville/Montgomery) 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. #0059 M/S/C/U(Colvin/Montgomery) on July 30, 1997, the Council does approve for payment those vouchers included and further described as follows: EFT 4343, 210943 through 21095, and 211018 through 211389 in the amount of $973,359.78; and Retirees' Payroll for the period ending July 31, 1997, in the amount of $99,001.09. COUNCIL MEMBER REPORTS Mr. Colvin congratulated the citizens of Bremerton for adhering to TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 2 of 15 the City's desire to clean up weeds and debris. Mr. McConnell congratulated Mayor Horton on being selected to receive the Bridge Builder Award. Mr. Law announced District #3 will not hold a Neighborhood meeting in August; however, he welcomes calls from constituents, who may have concerns or questions. He cautioned senior citizens against signing up with credit card companies to order merchandise with the enticement that they will win a super prize. They should not give out their credit card numbers freely. Recently, he was asked to help an older gentleman, who had become involved with such a promotion and become indebted. Mr. Law was able to help this person through a local group whereby the merchandise was returned and the debt reduced. As an alert to the public, if they notice a neighbor receiving delivery of a lot of packages they might check to see if that person is involved in such a scam. Local help is available through the Senior Information and Assistance Office 895- 5700. Lastly, Mr. Law congratulated Council's Legislative Assistant Merilynn Erhart on receiving First Place in the City Employee Pie Baking Contest, which took place at the City Employee Annual Picnic on July 25. Mr. Overson announced Council Districts #1, #3, #5, #7 and #9 are up for election at the next General Election and the deadline to sign up to run for those positions is August 1 at the Elections Division at the Kitsap County Courthouse. Mr. Neville reminded everyone of the next Concert in the Park at Evergreen Park is scheduled for August 5. He offered his congratulations to Mayor Horton on winning the Bridge Builder Award which is richly deserved. He extended condolences to Council President Farr on having another birthday this year. Mr. Farr encouraged anyone having an interest in City government to take advantage this week to sign up for open elected offices. He announced Council Districts #6, #7 and #8 will hold a joint Neighborhood Meeting on July 31, 1997, 7:00 P.M., at the Bremerton School District Office located at 134 N. Marion Avenue. Mayor Horton and City Engineer Randy Witt will be guest speakers at that meeting, which will also include the following topics: Gateway Project, Sinclair Landing Project Update, and traffic calming devices. MAYOR'S REPORT Mayor Lynn Horton reported on the afternoon of July 25, City employees, who chose to participate, were released two hours early in order to participate in community service projects throughout the City. This effort resulted from a suggestion by Marylyn TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 3 of 15 Waibel, Department of Community Development. Following that activity, the City employees held their annual picnic that included a softball game and Pie Baking Contest. Once again, the Parks Department was the recipient of the trophy for the softball tournament and her team (Fire Department) came in last. Since the Parks Department has won two consecutive years, she will be joining their team next year as their handicap. Mayor Horton introduced Bob Battin, Bremerton Central Lions Club and Chair of the Sister City Exchange Program. Bob Battin stated he has chaired the Sister City Committee for the Bremerton Central Lions club for the past five years and served on the committee several years prior to being named Chair. Over the years he has been impressed with the quality of students applying for the exchange program, which gives him great hope for the future under the leadership of such outstanding young people. And, the exchange students coming from Kure, Japan, have also been outstanding young men and women. He thanked Mayor Horton and her Secretary Elaine Valencia, who has helped coordinate this program for 15 years, for their support and tremendous help they have provided. He appealed to members of the public to consider being a host family next year and information on the exchange program can be obtained by calling the Mayor's Office. He called up the students, who then introduced themselves: Ms. Kanae Yamane, Mr. Yousuke Oka and Ms. Naoko Miyagi. Mayor Horton extended a special "thank you" to Mr. Battin and all the Lions Club members, who spend a large part of their time as hosts in conjunction with the City to carry out this program. Without their assistance, this program would not be possible. PUBLIC RECOGNITION Reverend Cleveland Williams, Ebenezer A.M.E. Church, congratulated Mayor Horton on being named the recipient of the Bridge Builder Award. He extended an invitation to the City Council to attend a reception for Bishop Vernon R. Byrd, who is the presiding Prelate of the 50 Episcopal District of the A.M.E. Church, at the Ebenezer A.M.E. Church on August 8, at 3:00 P.M. Larry Dickerson, Bremerton resident, reported about six months ago a campaign was started to fight drug dealing, crime, prostitution, etc., in the City's core area. At that time, he contacted the Bremerton Area Chamber of Commerce for assistance, however, their response was they did not become involved in that kind of activity. That response did not deter him and every business he contacted, with the exception of one, was more than gracious in applying pressure and influence to help clean up the area. He publicly thanked the following businesses for their support: Kitsap Bank, Seafirst Bank, Kitsap Federal Credit Union, Coffee Oasis, Bremerton Dance Center, Doyle Chiropractic Center, Dillan Insurance Agency TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 4 of 15 and Clarke Whitney CPA. A short time ago, he had the opportunity to join Bremerton Police Officers in a drug house raid and at that time he learned from the officers that the numbers being reported in regards to percentages of crimes in Bremerton are not accurately reflected and are much greater. He believes Acacia Crips have regained a major stronghold in the City and are becoming more organized. Three years ago the City had a major Drug and Gang Unit, which apparently was disbanded and left only four officers working 9:00 A.M. - 5:00 P.M., unless they were on special assignment. He was also told several Police Officers attempted to bring the gang problem forward, but were "called on the carpet" for doing so. He was also told there is an attempt to put the Police Officers into a 12-hour shift, which would increase their stress factor and they felt it might be an attempt to reduce funds within the Police Department. Mr. Dickerson believes the City Council should investigate this matter with no reprisals on any Police Officer that comes forward with information. Lastly, he was concerned that a lot of the misdemeanor charges, such as prostitution, small amounts of marijuana, etc., are not written up as a ticket because the Municipal Court cannot handle it due to the right to a speedy trial. He believes the Court system should be expanded so that those kinds of illegal actions can be prosecuted. He also wonders why THE SUN has not done investigative reporting on the drug and crime problems in Kitsap County? Patricia Mathes, Westsound Cable Access Television member, thanked the Council for providing her with a response to the question she raised at the July 16 City Council meeting. Despite the City's and County's action Westsound Community Access Television, as a nonprofit organization, is alive and well. Westsound consists of approximately 300 individuals, who are members or appointed by memberships through groups and are still active. Anyone wanting information about Westsound membership can contact her at 373-2250 or P.O. Box 41, Bremerton WA 98337. Gordy Byrd stated he intends to locate his shelter for the homeless in the Seattle area because someone has offered him a building at no cost. 7A - EMPLOYMENT CONTRACTS: BKAT INTERIM EXECUTIVE, BRUCE STIER; AND BKAT PRODUCTION COORDINATOR, ROBERT NEAL, #AB97-170 The attached contracts are for the full time positions of Interim Executive Director and Production Coordinator for Bremerton Kitsap Access Television (BKAT). Kathy McCluskey, Director of Administrative Services, stated the proposal to fill the subject positions will enable the City to resume management of public access services for Bremerton. Today, Kitsap County accepted the termination of the Westsound contract, TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 5 of 15 and are currently reviewing a funding proposal with the City to pass their funding onto the City to manage the newly formed BKAT. The access program will continue, but will be evaluated during the year. Ms. McCluskey stressed there is much work ahead, such as obtaining new equipment, recruiting, and training. She addressed concerns discussed at the County Commissioner meeting on Monday, and the comments on "a government takeover" and censorship. To those who may not understand or recall, the City ran public access with TCI as a partnership for more than 10 years, and during that time only a handful of tapes were not shown, and that was due only to the technical quality of the tapes, not based on content. The purpose of what is being done under this structured organization has to do with management, not controlling programming. This program is not fully funded and will operate on a "shoestring" budget, as it has for the last 10 years. Also, there is no intent to hire more new staff and new equipment purchases will be limited; however, with the County assisting in the funding, they will be further ahead than in the past. In addition, a Citizen Advisory Committee is being proposed, which will promote community outreach, deal with programming issues, recommend policy, and acting as a "bridge" between the public, public access, and elected officials. In conclusion, six goals were stated: 1) to continue public access, and improve it; 2) to make the equipment and facilities available to anyone in Kitsap County; 3) training and retention of qualified volunteers; 4) to develop clear policy and direction; 5) establish Citizen Advisory Committee; and 6) to reevaluate in one year (midyear 1998). Bruce Stier, Interim Director, stated he believes access television is a very important part of the community, and thanked Council for their continuing efforts. Charlene Burnett, Westsound Board member, stated her support of the hiring of Bruce Stier and Bob Neal. She was saddened to see the end of Westsound Community Access Television, but glad to see the City take over proper management. Gar Freymann, Bremerton resident, stated his concern that City Council meetings and other programs of interest, such as Bremerton High School Graduation Ceremony, were not being televised by Falcon, who service a portion of Bremerton residents. He asked what was Falcon Cable's role in the new public access television? Henry W. Siekes, who is also known as Hank Mann, stated he has been in the broadcasting business for 35 years and managed a Cable TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 6 of 15 Access facility as part of a regular television system in Tacoma, WA for Tribute Publishing Company (90,000 customer based system that was later purchased by Viacom and now owned by TCI). He has known Bruce Stier for 25 years in the broadcast business, primarily the Seattle market, and could vouch for Mr. Stier's credentials. He also served with him for approximately two years as a member of the Westsound Board of Directors. He emphasized Bruce is a man of even temperament and fairness, a producer who works well with the public and the board members, and also has public relations skills and video technical expertise. As a member of the Westsound Board of Directors, Mr. Siekes had become discouraged, humiliated, and ashamed over the past 18 months because of the actions of the Westsound members, who did not have a business background and did not understand a Board of Directors was appointed by the conveners to run the business of a corporation. Before there was a basic foundation of a business, they had to establish a business with all of the infrastructure in place before it could become a profitable business representing public access within the community. One of his biggest frustrations is that the producers believe that the City of Bremerton and Kitsap County control program content, which is not the case. As a Board member, he never heard anyone from the City or County make any request to censor or prevent a taped program from running on Channels #3 (Falcon) or Channel #12 (TCI). He thanked the City Council for continuing Bremerton Access Television and incorporating Kitsap County into that plan. He believes without the City's lead the cable access organization might have just collapsed. He has strongly supported cable access television for all the years he has been in the broadcast business, especially those associated with cable television. He also thanked the City for recognizing the need for the public to have access to the airwaves that they truly own. Mr. McConnell questioned the source of funds for the subject positions, and if it was included in the 1997 budget? Ms. McCluskey explained "Public Access" is already budgeted under General Miscellaneous 0173 and identified under the Administrative Services in terms of direction and management. Mr. Neville questioned if he understood correctly that the cable access office would be located at the TCI facility? Mr. Stier stated no, their primary location is at 7266 Tibardis Road and they will also be using the TCI studio located on Sylvan Way. BKAT will interface with the producers at both of those locations. Mr. Neville asked if Mr. Stier had a plan to bring back and involve more volunteers? Mr. Stier stated yes, and training sessions are being held on Thursday evenings. Mr. Neville stated in response to the concern about the tie-in with Falcon Cable Television with TCI to broadcast City Council meetings, he hoped that would be one of the main priorities. He agreed that Mr. Stier is known for the TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 7 of 15 quality of his work and that he is a gentleman. #1597 Mr. Colvin asked if Westsound Cable Television was a nonprofit organization? Ian Sievers, City Attorney, stated yes. Mr. Colvin asked if the Westsound organization was dissolved? Ms. McCluskey stated the future of Westsound is up to that organization since the City has no authority or ownership; however, they will not receive any funding or equipment from the City or County. BKAT is not a new organization, but rather the reactivation of Bremerton Community Access as a budget unit of the City and small division of the City with that title over the next 16-17 months. Mr. Colvin asked if BKAT will have a Charter and be an independent entity? Ms. McCluskey stated no, and it will not be independent from the City. Mr. Sievers emphasized BKAT is a City program that will involve a service contract with Kitsap County. Ms. McCluskey noted the Westsound Board of Directors did a very good job and the fact the organization failed as a nonprofit at this point in time should not be viewed as a reflection on them. She expressed a special "thank you" to the Board members for their efforts and for moving ahead to support this new program within the city. It was her understanding that the majority of the Westsound Board supports the BKAT program. M/S/C/U(Neville/Colvin) to approve contract with Bruce Stier as Interim Executive Director of BKAT for the period 8/1/97 to 12/31/98, subject to 30-day without cause termination. #1745 M/S/C/U(Montgomery/Huff-Menees) approve contract with Robert Neal as Production Coordinator of BKAT for the period 8/1/97 to 12/31/98, subject to 30-day without cause termination. 7B - SECTION 108 MEMORANDUM OF UNDERSTANDING, #AB97-171 Kitsap County applied, at the City of Bremerton's request, for a loan from HUD under the Community Development Block Grant Section 108 Program and an EDI Grant for construction of a parking facility in relation to the Sinclair Landing Association Project. The application was approved for a loan in the amount of $2,700,000 and a grant in the amount of $475,000. In order to execute the documents to "reserve" the funds with HUD the County requires execution of the attached Memorandum of Understanding. The parking facility will be a "turnkey" project in which the developer constructs the facility and the City will purchase it when it is completed. Loan documents for the Section 108 funds will not be executed until the City is ready to purchase the facility. Repayment of the loan will be required only after loan documents have been executed. The Memorandum of Understanding does not lock the City of Bremerton TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 8 of 15 into this project. If the project does not "pencil" out we will not proceed. ' Mayor Lynn Horton noted this is the second HUD Loan that the City has embarked upon, the first was a pass-through to the Admiral Theater. She emphasized the City was not committing to do anything other than reserving the HUD money for a loan. As progress is made through the Framework Agreement and the Business Agreement with the Commercial Group and other participating agencies in the public/private partnership, and City will look toward Bond Counsel for a recommendation whether or not to proceed with the project. If this project is not a sound financially, the City's Bond Counsel will be the first to recognize that situation. Public comment - none. Mr. McConnell referenced Item 6 in the Memorandum of Understanding that talked about the City agreeing to provide collateral that may be required by HUD, including a Deed of trust on the property, and asked if that would create any kind of interference with actually getting the parking garage built. Mayor Horton stated no, and the City may elect to pay back the HUD loan when financing for the whole structure is secured since interest on the HUD loan was not discounted. Mr. McConnell stated he assumed the cost of the loan would be subtracted from the eventual purchase price of the garage. Mayor Horton stated that needs to be factored into the purchase price and that point had not been discussed previously. #1917 M/S/C/U(Montgomery/Colvin) to authorize the Mayor to sign the Memorandum of Understanding. 8A - RESOLUTION NO. 2618, ADOPTING A CITY INVESTMENT POLICY, #AB97 172 The City's investment policy was last updated in 1990. The proposed revision adds the Washington State Local Government Investment Pool (LGIP) to the list of authorized investments and updates the reporting and performance standards sections. Rich Hanna, City Treasurer, stated the proposed policy looks very similar to the policy that has been in place since 1990, which was drafted off a model provided by the Municipal Treasurers' Association of the United States and Canada. He believes the policy has served the City well and guides Council, Fiscal and Budget Committee and the Treasurer's function. Public comment - none. #2069 M/S/C/U(Colvin/Montgomery) to adopt Resolution No. 2618, adopting a Policy for the Investment of City Funds. TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 9 of 15 8B - RESOLUTION NO. 2619 REGARDING RECOVERY OF FEES FOR THE REMOVAL OF VEGETATION ON THE LISTED PROPERTIES AB97-173 Ordinance No. 4584 declares that it is unlawful and a nuisance to allow, continue, or maintain grass and weeds exceeding twelve (12) inches in height, shrubs, brush, vines, or trees which constitute a fire hazard or provide a harborage for rats, rodents, or horticultural pests, or noxious and poisonous plants. The listed properties are currently in violation of the ordinance and pursuant to Section 9.14 of the Bremerton Municipal Code, Council is asked to approve the removal of the nuisance vegetation on the property and collection of the costs incurred by personal judgment against the owner and a lien against the property. Janet Lunceford, Building Department, handed out the original pictures taken showing the subject area that involved abatement action. And, she asked that Item #2 be deleted from the list (1519 N. Callow Avenue). Public comment - none. Mr. Colvin stated he believes some people believe this action is a way to get a "cheap,, clean up for their property. Ms. Lunceford assured Mr. Colvin not all of the properties can be abated within a few hours, some can take as much as 14 hours. #2177 M/S/C/U(Montgomery/Colvin) to adopt Resolution No. 2619, approving nuisance vegetation abatement on the listed properties and determining means of collection of costs incurred for its removal. 9A - ORDINANCE FIRST READING REPEALING ORDINANCE NO. 4282 AND ELIMINATING THE ADMIRAL.THEATER FUND #AB97-174 admiral Theater Fund was created by Ordinance No. 4282 in 1990 shortly after the City purchased the theater building. The intended purpose of the funds was to provide a budgeting and accounting for the rehabilitation and subsequent operation of the building. As we now know, these functions are being carried out being a nonprofit corporation rather than the City and therefor, this fund of the City is not necessary. Rich Hanna, City Treasurer, stated the initial Admiral theater renovation is completed and now ' portion of the of the provisions for the ordinance as it present~ operation. One exists requires this fund be the recipient of any Admission Taxes collected as a result of events at the theater. He did not believe that was the intention of the Administration or City Council; therefore, he recommended that an unnecessary ordinance be repealed. Public comment - none. TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 10 of 15 Mr. Colvin asked if any money remained in the fund? Mr. Hanna stated no. #2319 M/S/C/U(Overson/Montgomery) to approve ordinance on first reading, repealing Ordinance No. 4282 which created the Admiral Theater Fund. 9B - ORDINANCE (FIRST READING) REPEALING ORDINANCE NO. 4180 AND ELIMINATING ThE ATHLETIC SPORTS FUND, #AB97-175 The Athletic Sports fund was created by Ordinance No. 4180 in 1988 to provide budget and accounting for several activities administered by the Parks Department. For the past several years, these activities have been included within the Parks Department of the General Fund. Since the fund is no longer used, it is recommended that it be eliminated. Rich Hanna, City Treasurer, stated this fund was used primarily for league sports (basketball and softball). General Accepted Accounting Principles state the City should operate the City using as few funds as possible; therefore, that was reason these kinds of activities were included in the Parks Department's Athletic Division. This fund has not been used for a number of years and he did not anticipate any future need. Public comment - none. Mr. Overson questioned if he recalled correctly that this fund was once used to collect funds to help promote the Pendergast Regional Park construction? Mr. Hanna stated yes, the money that had accumulated in this fund was transferred to the Capital Projects Fund. #2465 M/S/C/U(Montgomery/Colvin) to approve ordinance on first reading, repealing Ordinance No. 4180 which created the Athletic Sports Fund. 9C - ORDINANCE (FIRST READING) SETTING LEGISLATIVE AND ADMINISTRATIVE CONTROLS OF THE CITY BUDGET, #AB97-176 The ordinance controlling administration of the City's budget was last amended in 1991. The proposed modifications will increase the authority of the Mayor and the Fiscal and Budget Committee to offset the effects of inflation and will provide a simpler mechanism for dealing with technical errors. Rich Hanna, City Treasurer, stated the recommended action would increase from $5,000 to $10,000 the authority of both the Mayor and Fiscal and Budget Committee to approve adjustments to the budget. In the case of both the Mayor and Committee, their authority is limited to changes that result in a "0" net change within any given TAPE #1480 City Council Reg. Mtg. Minutes July 30, 1997 Page 11 of 15 Department within the fund of the City. As always, only the full City Council has the authority to increase the bottom line expenditure authority of any Department or fund within the City. The Mayor's authority would be expanded from the current $5,000 up to $10,000 to move previously authorized appropriations among category groups. The net effect within a Department has to be net to "0." The Fiscal and Budget Committee would have that same authority, but in addition could add and delete capital projects from the authorized appropriations. Gar Freymann, Bremerton resident, asked if this action takes away anything from the City Council's power of authority? Mr. Hanna stated both the current ordinance and with the proposed amendment Council is delegating either down to the Mayor or Fiscal and Budget Committee a certain amount of authority to make modifications to the budget. In the absence of this kind of delegation, any modification to the City's budget, because it was approved by an ordinance passed by the full city Council, would require an amendment to make any change. What is desired is a balance between the Council maintaining their control over the budget and burdening the council with bureaucratic red tape. He believes it is a reasonable amount and $10,000 is the threshold for contracts being brought before Council for approval. Mr. Freymann restated his main concern was that the entire Council be accountable. Mr. Overson asked the Treasurer to define the difference between Ordinance Nos. 4332 and 3896, the Budget Control Ordinance, and which one takes precedence? Mr. Hanna stated the earlier ordinance was amended by No. 4332. Mr. Overson asked how the accountability of the Council is still maintained even though Ordinance No. 4332 changes the amount of the fund level, and does reconciliation still have to come before Council on all budgetary changes? Mr. Hanna stated regardless of what "level of authority" is appropriate to approve a given budget adjustment, the budget will be amended by ordinance. He reiterated the authority he is asking Council to delegate to the Mayor and Fiscal & Budget Committee is to move appropriations within a Department. Only the full Council would have the authority to increase the expenditure authorizations for any Department. Mr. Law referred to Mr. Overson's comments, and asked if a memo could be addressed to each Council member listing the items approved by the Fiscal and Budget Committee in order to avoid any surprises? Mr. Hanna stated that could be done. TAPE #1481 TAPE #1481 City Council Reg. Mtg. Minutes July 30, 1997 Page 12 of 15 Mr. Montgomery asked how many times a year has the transferring of funds taken place? Mr. Hanna stated maybe two times. Mr. Colvin asked that additional training on this subject be provided to Council members. Mr. Overson commented that even though there have not been many changes lately, in other administrations this has not always been the case. #0021 M/S/C/U(Huff-Menees/Colvin) to approve ordinance on first reading, amending Ordinance No. 4332, setting forth legislative and administrative controls on the budget of the City of Bremerton; and amended to include notification to all Council members of any agenda items that would require a budget adjustment action by the Fiscal & Budget Committee. 9D - ORDINANCE (FIRST READING) ADOPTING A TwO-YEAR BIENNIUM BUDGET BEGINNING JANUARY 1, 1999, ~AB97-177 The Legislature, through RCW 35.34.040 has authorized cities to budget on a two-year biennium basis. The proposed ordinance will have the City begin budgeting in this manner beginning with the 1999 fiscal year. Rich Hanna, City Treasurer, stated the time for this idea has come, and during the "off-year" the City would experience a significant savings in the amount of staff and Council time. Other reasons in favor of this change include: the tax base for the City has stabilized, there is relatively low inflation, and an experienced City financial staff is in place with better computer hardware and software tools. Charles Brown, Bremerton resident, stated the 106% lid is no longer automatic, it is now 103%. He asked will the Council now be required to vote on the other 3% and how would this issue be addressed? John Thomas, Bremerton resident, asked if going to a two-year budget will reduce the number of bridge loans between tax receipts and expenditures? Mr. Hanna stated in regard to property taxes, under the biannual budget format the City would still levy a Property Tax Ordinance. In regard to bridge loans, assuming Mr. Thomas was referencing the Tax Anticipation Note that is implemented every year to finance the General Fund cash flow, there would be no change to current practices. He pointed out a biannual budget would not be identified as one "lump sum" to Departments for operation over 24 months. The appropriation would be segregated into the first and TAPE #1481 City Council Reg. Mtg. Minutes July 30, 1997 Page 13 of 15 second years of the biennium. Mrs. Huff-Menees stated it was her understanding that going to the biannual budget would not preclude the budget review process in some form taking place annually. Mr. Hanna stated Mrs. Huff-Menees was correct. The statutes that authorize biannual budgeting specifically require a mid-biannual review. As discussed in Council Committee, at its very worst that mid-biannual review could begin to look and feel like a full-blown annual budget presentation by the administration. At its very best, it would be a very brief presentation informing the Council mid-biennium figures are charting as planned. Mrs. Huff-Menees stressed the importance of the budget review process so that the Council can get a full picture of the financial status of the City. She also felt the review process provided Council with one of the best educational tools. President Farr asked if other First Class cities similar in size to Bremerton had adopted a biannual budget or was Bremerton breaking new ground? And, had there been any computation of savings to staff time as a result of the two-year budget? Mr. Hanna stated 14 cities in the State of Washington are using biannual budgets, which are skewed to the larger populated cities (Seattle, Tacoma, Spokane, Bellevue, Redmond, Vancouver, Kennewick, etc.). The city of Port Angeles had previously used a biannual budget for a number of years, but have returned to an annual budget due to their unstable tax base, i.e., plant closure, etc. He also understood the change to an annual budget coincided with the change in City Managers, which may have been a personal preference of a new Manager. He could not quantify dollar cost savings in staff time, but from his research he learned that other cities experienced significant savings in staff time. He was hopeful that he and his staff will have more time to do other things, such as providing Council with some educational opportunities. Mr. McConnell referenced Section 2, line 6: "Council fiscal and Budqet committees may consider such proposed modifications and refer them to City Council with any recommendations," and asked if the word "may" should be changed to "will?" Mr. Hanna stated he would review that point prior to second reading of the Ordinance. Mr. McConnell pointed out State government uses a biannual budget and he believes it will also be beneficial to the City because it will require the Mayor and staff to look into the future and make determinations to address those needs. #0539 M/S/C/U(Montgomery/Colvin) to approve ordinance on first reading, adopting a two-year fiscal biennium budget beginning January 1, 1999. TAPE #1481 City Council Reg. Mtg. Minutes July 30, 1997 Page 14 of 15 9E - ORDINANCE (FIRST READING) AMENDING THE 1997 BUDGET (BUDGET ADJUSTMENTS 97-1 THROUGH 97-24)t #B97-178 A number of actions have been taken by the Cities which need to be incorporated into the Budget in order for the document to remain an accurate projection of City financial activity. Rich Hanna, City Treasurer, stated the proposed ordinance summarizes and incorporates into the budget 24 Budget Adjustment requests that have been processed through Fiscal and Budget Committee to date. Most of the significant adjustments to the budget have been approved by Council under separate Agenda Bills. He identified the following Budget Adjustment requests that had not been seen by the full Council: (1) 97-3 - increasing the capital authorization for two Police cars by $7,900. (2) 97-8 - upgrading one position in the Forestry Division of the Water Utility. (3) 97-17 - increase the Human Resource Department Supplies and Services line item by $8,000, providing for the City's employee drug and alcohol testing program ($5,000) and for administration of the medical and child care reimbursement account. (4) 97-21 - allocates the Community Development Block Grant revenues. The original budget was based on an estimated amount and this Budget Adjustment reflects the actual allocations and incorporates the re- authorization of HUD loan repayments that have come into the Department, including the HOME Program and reappropriates prior years' letters of credit, which were not included in the original adjustment. (5) 97-22 - increases the appropriation of revenues by $36,255.00 for three different programs within the department and none of them affect General Fund tax revenues. (6) 97-24 - appropriates $15,168 for the upgrade replacement of the telephone system in the Parks Department, which was authorized in the 1996 budget; however delivery of materials was delayed so the expenditure did not occur until 1997. Public comment - none. #0660 M/S/C/U(McConnell/Montgomery) to approve ordinance on first reading, amending Ordinance No. 4579 relating to the budget of the City of Bremerton for Fiscal Year 1997. President Fart thanked the TV camera crew for their services: Bob Neal, Patricia Mathes, and James Nobel, Jr. With no further business meeting adjourned at 7:21 P.M. TAPE #1481 City Council Reg. Mtg. Minutes July 30, 1997 Page 15 of 15 DAVID FARR, Council President City of Bremerton PJ/DDF/me cc: Normal Distribution File/Vault