HomeMy WebLinkAbout01/08/97
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CITY COUNCIL MEETING MINUTES
JANUARY 8, 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, January 8, 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 Law and Invocation given by Reverend Bill Wambsganss of
West Side Baptist Church.
President Law announced Council had just concluded an Executive
Session where they discussed "Labor Negotiations".
MAYOR'8 REPORT
Mayor Lynn Horton reported she will be attending a welcoming dinner
for Admiral Clemens this evening in Seattle. As an update to the
storm damage, she was pleased to report the Warren Avenue Bridge
was opened much sooner than originally identified due to the quick
response by the State to bring in a contractor to assess the damage
and remedy the problem. She thanked the State of Washington and
the contractors for doing an admirable job in getting the bridge
back in service. she also thanked the National Guard for providing
traffic enforcement during the closure of the bridge was closed,
and City staff for their effort in coordinating alternate routes.
As-far as City damage, road washouts and water damage to the
Municipal Court Room and several other offices suffered from the
storm. She anticipates the cost to the City will be approximately
$150,000 to cover the costs of roadway repairs and other costs
incurred due to storm related conditions. She noted that cost is
minor compared to the rest of Kitsap County and the City of
Bremerton. The totals for damage incurred from the storm in the
City of Bremerton exceeds $10 million. She suspects that total may
go upward to $15 million. Damage assessments are being gathered
County-wide so that they can be forwarded to President Clinton with
the hope that he will sign the Emergency Declaration, which will
provide FEMA funding for all the governments as well for those who
had damages but were uninsured. She expressed her appreciation to
City staff, particularly Assistant Fire Chief Al Duke, Bob Tulp,
and Riley Thompson.
Mayor Horton read a Proclamation recognizing January 20, 1997 as
Martin Luther King Jr., Day in the City of Bremerton. Reverend
Cleveland Williams, Ebenezer AME Church, accepted the proclamation
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and invited everyone to celebrate this day at the Kitsap Pavilion
10:30 - 1:00 P.M.
(NOTE: Mayor Horton comments on Agenda Item 7A were made during
her Report; however, they are listed under that item.)
ELECTION OF CITY COUNCIL OFFICERS
President Law opened nominations for City Council President/Mayor
Pro Tom:
Mr. Montgomery nominated David Farr.
Mr. Winters nominated John Law.
President Law closed the nominations.
Vote: David Farr - 5 votes
John Law - 4 votes.
David Farr was elected City Council President/Mayor Pro Tom.
Mr. Montgomery called for a roll call of votes: Paula Johnston,
Deputy City Clerk, read the following voting record: Votes for
David Farr: Huff-Menees, Overson, Novills, Farr, Montgomery.
Votes for Mr. Law: Winters, Law, McConnell, Colvin.
Mr. Law thanked Councilman Richard Neville for always being
available to fill in as President in his absence and those Council
members that came through whenever he asked for help or advice. He
extended a special "thank you" to Mrs. Erhart for always being
supportive during his year as President.
President Farr thanked Councilman Law for putting in a lot of
effort in his role as City Council President and he will be
counting on him in the turn-over of the Presidency.
President Farr opened nominations for City Council Vice President:
Mr. Winters nominated Cecil McConnell.
Mrs. Huff-Menees nominated Richard Neville.
President Farr closed the nominations.
Vote: Cecil McConnell - 4 votes
Richard Novills - 5 votes.
Richard Novills was elected Council Vice President.
Mr. Montgomery called for a roll call of votes: Paula Johnston,
Deputy City Clerk, read the following voting record: Votes for
Richard Neville: Colvin, Farr, Montgomery, Huff-Menees, Neville.
Votes for Mr. McConnell: Law, Overson, McConnell, Winters.
CONSENT AGENDA
A. Minutes - December 18, 1996 #AB97-001
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B. Minutes - December 23, 1996 #AB97-002
C. Minutes - December 30, 1996 #AB97-003
#0768 M/S/C(Neville/Montgomery) to approve Consent Agenda as presented.
Vote on Motion: In Favor: Montgomery, Huff-Menees, Neville,
Farr, Overson, McConnell, Law, Colvin
Abstain: Winters
Motion carried.
CLAIMS/CHECK RE~ISTERS
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.
#0793 M/S/C/U(Colvin/Montgomery) on January 8, 1997, the Council does
approve for payment those vouchers included and further described
as follows: Regular Payroll for the period ending 12/31/96, in the
amount of $876,298.71.
COUNCIL MEMBER REPORTS
Mr. Colvin wished everyone "Happy New Year". He commended Mayor
Horton for being so alert during the winter crisis. He thanked Don
Atkinson and KITZ for their reporting timely news bulletins during
the recent storm. He complimented the Warren Avenue Bridge repair
crew for making it possible to open the bridge earlier than
anticipated. He announced at the Council meeting on January 15 Jim
and Lillian Walker, who were selected to receive the "Citizen of
the Century", will be presented a Certificate Of Appreciation. He
was personally aware that the Walkers had contributed more than 100
years (combined) of public service.
Mr. McConnell announced District #2 will not hold a Neighborhood
Meeting in January. He referenced several letters being published
in The Sun concerning parking on City right-of-way and blaming
Senator Betti Sheldon for the recent action by the City to remove
vehicle parking off of planting strips. He pointed out the
legislation addressing liability for sidewalks sponsored by Senator
Sheldon did not have anything to do the removal of parking on
planting strips. The change she sponsored in the law was to assign
the responsiblity for the damage to the sidewalk and any other
structure resulting from vehicles parking on the planting strip.
That legislation was brought about as a result of a lawsuit against
the City of Tacoma and the Washington State Supreme Court's
decision that if the city did not enforce its ordinances they would
be responsible for any and all damages to curbs, sidewalks, etc.
Prior to passage of that legislation, cities were holding the
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abutting property owner responsible. He emphasized what Senator
sheldon did was good for the property owners...it removed that
responsiblity from the property owner and put it back on the City.
He believes the people writing letters to the editor on this issue
may have been miss informed. The laws governing parking on the
right-of-way portion between the traveled portion of the street and
the property line is covered in other RCW's, not the one people
have been referencing in their letters.
Mr. Law stated it was possible that those writing letters on the
removal of parking on planting strips may not be aware of all the
facts involved. He announced the next District #3 Neighborhood
Meeting will be held January 21, 7:00 P.M., at the Senior Center.
The program for that meeting will included talking about all that
has happened over the past two months.
Mr. Neville announced the following meetings:
(1) A public meeting with residents of the Park Avenue area will be
held January 14, 6:30 - 8:00 P.M., at the Kitsap Community Action
Program building located at 1201 Park Avenue.
(2) A public meeting will be held on January 21, at Memorial
Lutheran Church located at 10th and Veneta. This is a follow up
meeting to the one held in October where the issue of Parking on
planting strips was discussed.
(3) The Ferry Advisory Board will meet January 27, 1997, 6:30 -
8:30 P.M., in the City Council Chambers, which will be televised on
Channel 12.
Mr.' Neville thanked the Boy Scouts for the effort they made
delivering coffee and donuts to members of the National Guard, who
were assisting with traffic control when the Warren Avenue Bridge
was closed. He was amazed at the damage to trees along Highway 16
between Gorst and Tacoma, which was caused by the recent snow and
ice storm. Seeing that damage, he recalled how fortunate the City
was to have Bill McKinney, City Forester, who spearheaded the
removal of trees along the Old Belfair Highway before something
like the last storm could devastate that area. Lastly, he thanked
John Law for his leadership as City Council president this past
year...A JOB WELL DONE]
Mrs. Huff-Menees congratulated President Farr and Vice President
Neville on their being elected and a note of appreciation to Mr.
Law. The position of City Council President is one that requires
a great deal of time and effort, much of which goes unseen by other
members of the Council. In many ways, Mr. Law set some standards
that we can all pay close attention. Today she attended the Kitsap
County Executive Council where a lengthy presentation was made by
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Phyllis Mann, Director of the Department of Emergency Management
Services for Kitsap County. In her report, Ms. Mann mentioned
several times that we, as a community, deserve to feel very good
about the way the City, County, Kitsap Transit and a number of
community groups responded to recent emergencies. All of the
agencies affected came together and formulated an alternate routing
system that worked when the Warren Avenue Bridge was closed, which
was a remarkable feat considering the short time frame to
accomplish that task. The cooperation with which it was completed
is what made it such a success, but also an appreciation to the
citizens for responding in the manner they did when faced with the
bridge closure. The National Guard was recognized at the morning
meeting for their participation assisting the community. The
community as a whole could feel very good about the way responses
were made to emergency situations.
Mr. Montgomery stated his daughter and son-in-law were visiting
this area from Montana during the recent storm and did not
appreciate the inconveniences encountered due to our
unpreparedness. He commended the City Street Department for the
effort they made to keep the streets passable and making sure the
storm drains were working properly to prevent flooding. He also
commended the City's Fire Department and Police Department for
their efforts helping the citizens during the storm as well as
neighbors helping each other. He complimented The Sun on their
reporting during the week of the storm even though delivery of the
paper was not always possible in all areas due to snow and icy
conditions. However, in the January 6 edition of The Sun, a
picture of Kitsap County Commission Phil Best looking over the
damage to the Warren Avenue Bridge was printed and the article
contained some comments about the damage situation, but also talked
about a prior incident involving him and his use of the Internet.
Mr. Montgomery felt the latter comments were totally inappropriate
for The Sun to report as part of that news article and that Mr.
Best should not be continually bashed for a mistake that he
acknowledged he made. He questioned is The Sun going to continue
such practice as long as Mr. Best is in office? If so, then why
didn't they report on actions by other Commissioners for some of
the things they did? Mr. Montgomery and Mayor Horton viewed the
Warren Avenue Bridge damage on January 2, and was amazed at the
amount of dirt that had been moved from the damage area.
Mr. Winters stated in January 1996 he made a New Year's resolution
to be more active on Council and become better informed on what
could help and better the City of Bremerton, which he did. Since
this will be his last year on Council, he feels strongly that
certain things need to be done in 1997, and he will be more vocal
to the public so that they clearly understand that in City Hall
Council members are elected by the public. The following issues
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are "burning desires" for him to pursue: (1) adoption of an
ordinance addressing the Telecommunications Act; (2) complete
negotiations on TCI Cable's Franchise Agreement; (3) truly telling
the public exactly funding source for the Sinclair Land Project;
(4) Kitsap Lake's future, i.e. cleanliness and its vegetation
condition. He was saddened to report the recent passing of his
uncle, Dick Winters.
Mr. Farr congratulated Mr. Winters on his ambitious hopes
for 1997. He commended all those involved with handling problems
related to the recent snow/ice storm, particularly the coordination
of moving traffic over the Manette Bridge with the closure of the
Warren Avenue Bridge. He expressed condolences to the businesses
and individuals in the City that suffered losses due to the storm.
PUBLIC RECOGNITION
Kal Leitchman, Bremerton resident, acknowledged he was one of those
who wrote letters to the newspaper editor regarding the City's
action to remove parking on planting strips. He was still not
satisfied with the City's response to his earlier inquiry
requesting copies of the documentation relating to a lawsuit that
involved an injury related to an accident on a planting strip
resulting in a settlement of $18,000 to the claimant. The letter
he received from the City's Risk Manager stated he would have to
contact the City Attorney to obtain copies of the lawsuit. Mr.
Leitchman questioned why should he have to contact Mr. Sievers, the
City Attorney, when the Risk Manager could have obtained the
information and provided it to him. Again, he requested the City
provide him with that documentation. He then read a portion of the
14th Amendment to the United States Constitution and referenced its
application to what he believed was a "taking" from property
owners, if the City prohibits parking on planting strips.
President Farr assured Mr. Leichtman that Mr. Sievers was aware of
the information he wished to receive. Ian Sievers, City Attorney,
stated he would see that Mr. Leitchman received the requested
documentation.
Ed Pietras, representing the Martin Luther King Scholarship Fund,
talked about the selection of Jim and Lillian Walker as the
recipients of the "Citizen of the Century" Award. He extended an
open invitation to the public to attend the Martin Luther King Jr.,
Scholarship Fund Luncheon on January 19, 1997, at the Kitsap Golf
and Country Club, 1:30 P.M. Tickets for this event are available
at a cost of $18.00 pre-sale and $20.00 at the door.
Roy McInnis, Bremerton resident, stated most of the comments he
made during Council meetings in 1996, were Complaints and he hopes
to approach 1997 with a more positive look at what the City is
doing. He wished everyone a Happy New Year. Out of all of the
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effort given by lots of people during the recent snow storm, he
singled out Public Works and Utilities employee Donald Sefton to
commend for his going out of his way to assist the Sinclair
Missionary Baptist Church with a problem that involved flooding on
church property.
7A - RESOLUTION NO. 2582, REGARDING FINANCING OF BREMERTON HOUSING
AUTHORITY NEW HOUSING PROJECT, #AB97-004
The Bremerton Housing Authority has responded to the City's request
to develop new, owner-occupied, moderately priced housing units.
The project identified involves the City of Bremerton signing a
contingent loan agreement for financing. This resolution approves
the proposal in principle and authorizes the Mayor to sign the
contingent loan agreement when requested by the Bremerton Housing
Authority.
MaYor Lynn Horton stated this project is clearly a new role
potentially for the City of Bremerton to act as a backup guarantor
for the Bremerton Housing Authority's bond to develop 160 single
family owner/occupied homes. Over the last several years, the City
has identified one of the main issues of importance is to change
the demographic of 60% non-owner/occupied housing to something more
in line with a more economically healthy community. Not only is
owner occupancy good for the City, it helps people get on an
economic escalator and if you look at the fact the City of
Bremerton has a population comprised of 50% low income, that is
another major goal that the City has been trying to change over the
past several years. The City has been looking at economic
development to get people into jobs, we do have good educational
systems but we need a greater diversification of job opportunities
at all economic levels. In terms of economic dollars to the City,
there will be a one time tax advantage in the area of $600,000 that
will be coming to the City through construction fees. It also
means in excess of $70,000 per year in property taxes. This is an
issue that is clearly a major policy issue for the Council to
debate and it is her hope they will give their approval. One of
the things that makes this proposal attractive to the City, Housing
Authority and the developer, is that the City has a First Time Home
Buyer Program where over the last year approximately $100,000 in
Block Grant funds were offered to the community to act as down
payment assistance. As a result of the sale of each unit, the
Housing Authority and the City of Bremerton will receive some sort
of a profit margin and the City's intention is to roll those funds
back into more housing, i.e. down payment assistance. She realizes
there is a lot of neighborhood concern as to what 130 housing units
would do to the Almira Drive neighborhood, but the property is
already zoned so that someone could, at this moment, build 400 low
income rental units. That kind of project would not provide the
City with as great a tax base, could create other difficulties and
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it does not help the City achieve the goals that have been set out
in trying to change the demographics in homeowner occupancy.
She realizes this proposal may be a difficult vote for some members
of the council, but she feels strongly that the proposal is a solid
project. The Bremerton Housing Authority is very supportive of the
project and will be conducting a market analysis to make sure that
there is a market for this project before they move forward. If
the City is not willing to stand up and say we'll support our
principle goals, then maybe we need to re-evaluate what is thought
to be the goals of the City. She urged the Council to think
seriously about this issue and to vote yes.
Rich Hanna, Treasurer, explained the project is a residential real
estate development that would consist of 130 units of housing on
approximately 10 acres. He noted the City's goal is to promote
owner occupied housing at affordable rates within the City;
however, this proposal is a project of the Bremerton Housing
Authority. The Housing Authority is in the process of and will
continue to review the financial viability of the project and it is
there intention, based on discussions with the City, to go forward
with the project only if it makes sound financial sense and is
financially viable. The City's role, as proposed, is to provide
the Housing Authority with a credit enhancement through a
contingent loan agreement. This would mean the City will provide
an additional level of assurance to the bond holders, who would
lend money to finance the project. The financial analysis that has
been conducted on the project indicates that it does make sense
even if it does not sell out, but certainly the intention is to
foster owner occupied housing. The project can be financially
successful either through rental operation or sales. It would
appear the project would comfortably generate adequate income so
that the City's role would not be called upon to contribute
financial assets. Should that be the case, it would be in the
nature of a loan where the City would lend money to the Housing
Authority in the amount necessary over and above project income
from sales or rent so that the bond payments would be met in a
timely manner. The City would be reimbursed at a later date as
income from the property was in excess of later bond payments.
Merrill Wallace, Executive Director Bremerton Housing Authority,
stated the project has been presented quite well by Mayor Horton
and Mr. Hanna and he would be available to answer any questions.
Gene Kennedy, long time resident and Bremerton businessman, stated
he has seen a number of projects proposed for the subject site, but
none have been successful in their attempt to develop the site. He
was of the impression that either the wrong individuals were trying
to develop the property and/or it was the wrong time for such a
development. Now, he believes this is a good project as far as its
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structure in developing single family residences at what he
considers a moderate level of cost to the homeowner, but also a
very quality group of people that incorporates two local entities
and two developers, who have a good track record. He believes the
proposed project is an excellent use for the subject site and a
fascinating and positive approach to fill a need in the housing
market place.
Elizabeth Buell, Bremerton resident, asked if the site was level,
what is located behind the site, the proposed height of the
structures and their sale price?
Mr. Winters questioned if there was a bidding process used to find
the developer? Mr. Wallace stated no, basically Cobalt, the
developer, brought their proposal to the Housing Authority and the
City. Originally, the subject site (20 acres) was proposed to be
used for 360 units of rental housing. Cobalt came in with the term
"work force housing" that is used in other areas and is a home
ownership concept, which is something the Housing Authority had not
seen before. At that time, the proposal was reduced from 360 units
down to a lesser numbers. Members of the Housing Authority felt
developing 260 home ownership units might be more of a risk than
they wanted to take, so they asked that the property be divided
into two phases with Phase I being 130 units. This would basically
be a "turn key" project where the specifications will be set up and
agreed to beforehand,i e., price of the units. Cobalt and their
builders will build the project for a particular price and if it
meets the Housing Authorities specifications they will accept the
project, which they will then own and in turn will sell it out over
a period of time. Mr. Winters questioned if the $9,986,500 to
purchase the project was derived by Cobalt as being the cost per
square foot? Mr. Wallace explained negotiations were still
underway with Cobalt, but they have taken steps to determine if
there is a market and if the pricing is correct for an average of
$90,000 per home.
Mr. Overson acknowledged the data provided; however, he does not
support the project because it does not meet the City's goal to
reduce the number of rentals or increase the number of home
ownerships, and subject neighborhood is already 50% owner occupied.
These kinds of projects are needed in areas of the City where there
are problems. He pointed out two privately funded projects
proposed for the site did not succeed. His major concern has to do
with data from the trends that are happening in Kitsap County, i.e.
jobs are being eliminated, homes currently on the market for sale
are not selling, the Navy is building hundreds of new units for
military personnel, etc.. He felt it was unfair to the taxpayers
to put such a burden on them.
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Mrs. Huff-Menees stated she disagreed with Councilman Overson and
was delighted with the proposal in its complete concept. She
believes it does meet the City's goals, particularly after
listening to a presentation by the Health District on the
demographics of the County, its growth rate and projected growth
rate. This project is exactly what is needed to meet that type of
growth. From the time she joined the Council and long before that,
an identified deficiency in the City was the lack of homeownership
and the high percentage of rentals that present all kinds of
problems for law enforcement, health and property management. An
added benefit is to provide homeownership to an income segment of
the population that current is not met. She would much prefer to
have an opportunity that presents homeownership than more apartment
rentals. Many times it has been identified by the Navy,
Congressman Norm Dicks and people across the Sound, who look to
this area for possible residential opportunities, that this is the
type of thing they are looking for. She believes the design of the
proposed project is excellent and one that is a positive addition
to the Almira Drive neighborhood and one she would like to see
developed in other areas of the City. Although there is a certain
amount of risk, she believes the City must be willing to do what it
can to make improvements.
Mr. McConnell asked the City Treasurer the highest bond rating
allowed for the City? Mr. Hanna stated presently the City has an
A-Rating. The highest rating on bonds is "AAA", which is not
doable by a City the size of Bremerton anywhere in the Country.
Mr. McConnell asked if this proposal is approved, what would it do
to the City's A-rating? Mr. Hanna stated it is impossible to
predict all possible future scenarios. He has discussed at length
with the City's bankers and representatives of Moody's Investor
Service the affect, if any, of entering into the contingent loan
agreement. Neither he nor the Mayor would be advocating the
project if it were not so that it will have no adverse affect on
the City's bond rating. Mr. McConnell asked if it would affect the
bonding capabilities of the downtown project? Mr. manna stated no,
the contingent loan agreement has no affect on the city's statutory
limitation of indebtedness, which is another indicator that is
reflective that the possibility of this transaction impacting the
City in any significant financial way is quite remote. Mr.
McConnell referenced a section in the agreement that had to do with
the City gaining significant cash flow by purchasing the town homes
at an average cost of $76,050 and then selling them on the average
of approximately $90,000. That particular statement makes him
believe the City is going into the real estate business. Mr. Hanna
stated that will be the role of the Housing Authority as described
in the documentation. The documentation provided to Council is a
proforma, not a contract, due to the fact negotiations have not
been completed. What it does contemplate is as the developer
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completes the project and it is turned over to the Housing
Authority, the developer would be compensated at the $76,050 per
unit and the average sale price of the units would be $90,000. The
differences between those two costs would be shared by the three
parties included in the agreement; however, to what proportions has
not yet been determined. Mr. McConnell questioned how many bonds
are currently outstanding where the City has guaranteed or is
responsible for repayment? Mr. Hanna explained at this point of
time the City has no contingent loan agreements or any sort of
agreement whereby the City has guaranteed any other entities.
McConnell questioned not even the Admiral Theater? Mr. Hanna
pointed out that project is secured only by the real
property...there is no recourse back to the General Fund or any
other financial resources of the City. Mr. McConnell stated he
could not support this proposal because it would place an
additional burden on the tax paying citizens. He believed if it
was a "positive deal" private investors would be jumping at the
chance to get involved.
Mr. Law questioned if the houses are not sold or rented, what fund
will make up the bond payment? Mr. Hanna stated if the project
does not general adequate income to make the debt service, the City
would step up and provide that capital. Mr. Law stated he could
not support the project.
Mr. Colvin asked Mr. Wallace to explain the objective of this
project. Mr. Wallace stated it is to provide the community with
home ownership for 60% of median income. Currently, rental housing
is available to the citizens in that income bracket. It is his
belief that new employees will be coming into the area from other
areas that are use to 0-lot lines smaller housing. Mr. Colvin
questioned for clarification if the homes did not sell would the
city be financially responsible? Mr. Wallace explained the City
would be responsible for loan funds for the cash flow. He stressed
this project is built to sell the units; however, it also has a
proforma showing that if the units are not sold they can be rented
during that period of time. The Housing Authority has gone through
exhaustive discussions over the pros and cons of the project and
the Housing Authority Board does support the project. Mr. Colvin
stated this project would give people the opportunity for
homeownership, who are presently renting properties. Mr. Wallace
stated yes, people paying similar rents could actually become
homeowners. Mr. Colvin stated he could understand opposition from
people, who have vacant rental properties. He had mixed emotions
about further obligating the city, but it has not been shown to him
that the City will be adversely affected.
Mr. Montgomery pointed out the Department of Navy have instituted
a new program where members of the military are given the choice
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for "home port" on the east and west coasts. He wished that he had
had this type of opportunity and assistance to buy his first home
when he was a young sailor. He believes this project will be an
asset to the entire City when completed. He is a firm believer
that we have to take a gamble once in awhile and you can't always
bet on a sure thing, and he will support this project.
Mr. Neville stated we set out a task to the Bremerton Housing
Authority to find housing in Bremerton and the Growth Management
Act also directs in-filling properties inside Bremerton boundaries.
The Housing Authority chose this plan and after doing their
homework have shown that it gives a young couple the opportunity to
become homeowners. He pointed out even in Bremerton where houses
are more affordable than in the County homes sell for over $90,000
and on up and new automobiles cost $30,000+. It is difficult for
him to understand how young families get a foothold and actually
own "a piece of the rock". He believes the downsizing of
employment in this area is only a temporary phase, but the creation
of the Sinclair Landing project is projected to bring in new jobs
and people. And, with Puget Sound naval Shipyard's nuclear
capabilities it should be secure well into the future as will the
City of Bremerton.
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Mr. Neville stressed we have to look after our future now and that
means giving people the opportunity for the first step into
homeownership. In the event the units do not sell, the plan is in
place allowing them to be rented; and the annual debt service is
$625,000, not the total $9 million. He believes the site is a good
location where people can become homeowners with a view of the
Olympic Mountains. He requested staff to display the conceptual
design of the project. He pointed out one of the features of the
design that he particularly liked was locating garages in the back
of the residences with alley access. He questioned if the City
will have the opportunity to review the contingency loan agreement,
since the one in the documentation was for the County?
Sievers, City Attorney, stated he had a concern whether the
proposed Resolution should be the final Council action on the
project. Usually, the Council likes to review final documents and
this is a little internally inconsistent in that the first
"Resolve" says in principle they agree with the plan, but in the
"Further Resolve" it says the Mayor is authorized to sign documents
that are apparently still under negotiations. The Director of
Community Development commented to him that it was to authorize the
Mayor to continue negotiating; therefore, he recommended striking
the wording giving the Mayor the final authorization, which would
allow Council to then have the final decision on the documents for
this project. Mr. Hanna pointed out the contingent loan agreement
contained in Council's documentation was not offered as a draft
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document to be entered into by the City. It was simply
illustrative of the type of loan arrangement that is being
contemplated. This type of agreement is new to the City, but not
new to the County or other cities throughout the state. In answer
to a question raised by Councilman Colvin about the risk being
assumed by the City should the project be approved by Council, the
City intends to make a condition of the Housing Authority's
acceptance of the project from the developer that 10% of the units
be sold prior to their acceptance. Therefore, of the total 130
units, 13 would be sold prior to the Housing Authority accepting
the project, and 95% of the units would be leased out. That
clearly does not mean there is no financial risk, there is always
an element of risk, but it does not mean the City is taking over
the mortgage payments on a 130 unit complex that might be sitting
empty. Mr. Colvin asked the City Attorney what risks have not been
addressed at this point? Mr. 8ievers noted there is financial risk
and Mr. Hanna is in the best position to discuss that aspect with
Council and is one reason for looking at the contingency, and what
is the City guaranteeing, what can the City look to from the
Housing Authority for pay back if the City is required to meet some
of the debt service. The second reason to see some final documents
is what is the City's program or public purpose in providing this
guarantee. He felt the public purpose would be to provide
affordable first time owner's housing, thereby increasing housing
in the City. That may depend on a large degree on what the rent-
to-own program looks like.
Mrs. Huff-Menees questioned for clarification if the City Attorney
was recommending striking the final paragraph in the proposed
Resolution and requiring the final documents come back to Council
for approval? Mr. Sievers stated that would be required, if the
final paragraph was deleted, or as an alternative the word "sign"
could be changed to "negotiate" in the final Resolve paragraph.
Norm McLaughlin, Executive Director Kitsap County Housing
Authority, noted his organization has operated similar programs as
that proposed. Currently, the Viking Crest Condominiums in Poulsbo
has a County guaranty and 40 units out of 120 have been sold. They
feel there is a great need for this type of housing in Kitsap
County and that the City has other methods of assessing the risk
since the City has its homeownership program available and
effectively lowers the cost of the units by offering a subsidy,
which when the units are resold is recaptured. Kitsap County has
guaranteed other projects similar to the proposed project and there
have been no problems. The issues that Mr. Overson made regarding
the trends, which they publish, probably deserves some attention.
The City of Bremerton has been losing population and an attractive
property like what is being proposed will attract people back to
the City and will add to its tax base. It is true jobs have been
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lost in Kitsap County over the past year; however the Economic
Development Council is trying to diversify the economy and he
believes there will be results from their effort as well as the
Sinclair landing project. Mr. Montgomery pointed out trends have
indicated the attractiveness of Bremerton to people coming from
King County based on the fact housing costs are higher in that
area.
Mr. Winters asked the date of repayment? Mr. Hanna stated what is
contemplated is a financing mechanism that will allow prepayment at
any time. To the extent the units are not pre-sold during
construction, they would be purchased from the developer as
described by the Housing Authority. the principle on the debt
would then be paid as each individual unit is sold and the proforma
is drawn up around a sell out period of 60 months.
#0430 M/S/C(Montgomery/Huff-Menees) to adopt Resolution No. 2582, with a
modification to the last paragraph striking the word "sign" and
changing it to "negotiate"
President Farr stated he wholeheartedly supports this proposal in
that it emphasizes encouraging in-fill construction of new housing
within the City thereby bringing in population to the City, which
will increase the tax base and prevent sprawl out into the County.
He firmly believes if this project is not built in the City it will
be built a short ways outside City limits and the City would suffer
another loss of revenue. City officials were at odds with one
former County Commissioners for a long time over what they believed
was the projected population for Bremerton in the year 2012. This
is the City of Bremerton's opportunity to make its projections come
true. He calculated the need to increase the City's population by
1,000 per year to meet those goals. With the election of two new
Kitsap County Commissioners, the three Commissioners are people who
believe and will adhere to the principles of the Growth Management
Act, which will direct growth into the City. The project appears
to be well designed, user friendly and targeted toward the right
people. He believes a vote against this project is saying the
Housing Authority doesn't know what they are doing and the work
they put into it is for not, and the advise of the Kitsap County
Housing Authority, which has experience in this area, should not be
considered and that the Mayor and Mr. Hanna, who are paid to lead
this City correctly financially aren't making good decisions.
Vote on motion: In Favor: Huff-Menees, Neville, Colvin,
Winters, Montgomery, Farr
Opposed: McConnell, Overson, Law
Motion carried.
Paula Johnston, Deputy City Clerk, announced Item 8A had been
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pulled off the Agenda.
9A - PUBLIC HEIrRING, RESOLUTION #2580, REGARDING RECOVERY OF FEES
FOR THE ABATEMENT OF THE PROPERTY LOCATED AT 4906 KEAN STREET,
OWNER: EVAN BURLEY, #AB97-006
On November 15, 1996, the City demolished the burned house from the
property located at 4906 Kean Street after the owner, Evan Burley,
failed to do so as ordered by the Building Official. The cost
charged to the revolving abatement fund for this action totaled
$18,070.05. Council must now decide if the fees are just and
reasonable and how they should be collected.
President Fare asked the "Appearance Of Fairness/Conflict Of
Interest" question. Mr. Montgomery stated he had toured the site
several times, but he did not believe that would cloud his
judgement. Mr. Winters stated Mr. Burley approached him to
purchase a travel trailer from him, which he did not buy.
President Farr announced all Council members will be seated.
Roland Arper, representing the estate of George Liaset, stated Evan
Burley was indebted to George Liaset going back to the 1980's. The
last title report he obtained on the Burley property listed about
18 lien holders. They were in the process of foreclosure against
Mr. Burley this year, but two days before foreclosure Mr. Burley
filed for bankruptcy. They then petitioned the Bankruptcy Court to
release them so they could continue their action, which was
granted. Mr. Burley then came up with a proposal to sell the
property for approximately $375,000. The legal action to foreclose
was delayed to allow for the opportunity to sell the property.
They are currently scheduled to foreclose on the property on
February 7 and it is his understanding that the current sale
agreement that they gave an extension to close has now been
withdrawn, so the property is on the open market. His attorney,
Bruce Buskirk has had various correspondence with the City and
essentially their position is that they have worked long and hard
to get in first position lien against the property and any liens
the City may impose will be below their position as first position.
Ian Sievers, City Attorney, stated the primary purpose of the
Council is to verify the just and reasonable cost that was expended
and to file a lien. The position of that lien and the impact of
the prior liens would be subject of discussion at the further
action of foreclosure.
Mr. Montgomery stated he had viewed the site and reviewed the work
order history and was surprised at the cost of clean up considering
the debris that had to be removed.
#0769 M/S/C/U(Montgomery/Huff-Menees) to adopt Resolution No. 2580,
ordering that the fees incurred for the abatement of the house
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located at 4906 Kean Street be collected as reasonable abatement
costs and become a lien against the property.
9B - PUBLIC HEARING, RESOLUTION #2581, REGARDING RECOVERY OF FEES
FOR THE ABATEMENT OF THE PROPERTY LOCATED AT 3807 6TH STREET,
OWNER: ESTHER ALCANTRA, #AB97-007
On December 2, 1996, the City secured the abated house located at
3807 6th Street after the owner, Esther Alcantra failed to do so as
ordered by the Building Official. The cost charged to the
revolving abatement fund for this action totaled $388.17. Council
must now decide if the fees are just and reasonable and how they
should be collected.
Paula Johnston, Deputy City Clerk, read a letter from Patricio
Alcantra Jr.,: "I Patricio C. Alcantra Jr. am writing this letter
on behalf of his stepmother Esther Alcantra, who is 73 year old
widow of honorable discharged Navy veteran. She lives on fixed
income from my father's military and Puget Sound Naval Shipyard's
retirement benefits. Esther and I were wondering if those
concerned would accept say $300.00 instead of the $388.17."
President Farr asked the "Appearance of Fairness/Conflict of
Interest" question with all Council members being seated.
Patricio Alcantra Jr., stated his stepmother is on a fixed income
and he is disabled, so this cost will place a hardship on them.
His stepmother confided in him that she was willing to pay the
total amount if she had to. They consulted with an attorney, who
felt the cost of the labor was a little steep and could possibly be
negotiated with the Council.
Mr. Winters stated in his three years as a Council member he has
not seen such a low charge for an abatement and wondered why they
chose to let the City clean up the property rather than do it
themselves? Mr. Alcantra stated their reason was not having the
time or funds to accomplish the work. Mr. Winters pointed out the
city did notify his stepmother and he did recognized the fact that
Mr. Alcantra's father served in the military. Mr. Alcentra stated
he would throw his mercy on the council and thanked the person who
boarded up the windows and doors at the subject property.
President Farr asked the City Attorney if Council had the authority
to allow part of the fee to be collected now and part later? Ian
Sievers stated if Council approves a lien the City will not take
foreclose action. The City allows the County to foreclose on the
property, such as actions taken for delinquent tax payments. The
property owner actually has three years to repay the money. Mr.
Colvin asked if the property owner understood they had three years
to repay the cost? Mr. Sievers stated no, since it is an internal
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City policy and an automatic collection process. Mr.. Neville
stated he believed the subject property could be eligible for
Bremerton Housing Rehabilitation loans, which could be used to fix
up the house and make it more saleable.
#0979 M/S/C/U(Montgomery/Huff-Menees) to adopt Resolution No. 2581,
ordering that the fees incurred for the abatement of the house
located at 3807 6th Street be collected as reasonable abatement
costs and become a lien against the property.
President Farr thanked the TV camera crew for their services: Rob
Rupe, Jimmy Campbell and James Noble.
With no further business meeting adjourned at 7:35 P.M.
DAVID D. FARR, Councll President
City of Bremerton
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