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TAPES #1632 & #1633
CITY COUNCIL MEETING MINUTES
July 21, 1999
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 21, 1999,
at 5:30 P.M., with Council President Mike Shepherd presiding. Council members present
were Carlos Montgomery, Carol Arends, David Farr, Lon Overson, Cecil McConnell, and
Wayne Olsen. Council members Jim Reed and John Law were absent. Also present were
City Attorney Glenna Malanca, Deputy Clerk Paula Johnston, and Legislative Assistant Lori
Smith.
The meeting opened with the Pledge of Allegiance led by Council President Shepherd and
invocation given by Deacon Roy Mclnnis of Sinclair Missionary Baptist Church.
President Shepherd made the following announcements:
(1) City Council held a Study Session prior to the meeting to discuss general Council
business;
(2) City Council will hold a Study Session following the City Council Meeting to discuss
"HOME Fund Allocation for Home Ownership", in the Council Conference room; and
(3) City Council will hold the next Monthly Study Session on Wednesday, August 4, 1999
at 5:30 P.M. in the Council Chambers, in place of the regular business meeting.
CONSENT AGENDA
A. Minutes of Meeting - June 30, 1999 #AB99-135
#0045 M/S/C/U (McConnell/Montgomery) Motion to approve the Consent Agenda as
presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and
those expense reimbursement claims certified as required by RCW 42.24.090 have been
recorded on a listing that had been made available to the Council.
#0075 M/S/C/U (Montgomery/Farr) On July 21, 1999, the Council does approve for payment
those vouchers included and further described as follows: 232651 through 232779 in the
amount of $151,116.98; and Regular Payroll for the period ending July 15, 1999 in the
amount of $811,917.37.
COUNCIL MEMBER REPORTS
Mr. Overson reported on a recent trip, where he had a chance to visit many other cities. He
is positively impressed with what we have here in Bremerton and the Northwest. He reported
on an upcoming tour of Naval Station Bremerton.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 2 of 8
Mr. Farr invited the public to the next District 6-7-8 meeting to be held Thursday, August 19,
1999 at the Bremerton Administration building at 134 N. Marion Avenue to discuss "Future
Park Projects" with Cris Gears, the City's Parks & Recreation Director; and Mayor Horton.
Mrs. Arends reiterated the information about the District 6-7-8 meeting, and also thanked
the "World Changers" group for their recent visit to the City.
Mr. Montgomery thanked Mr. & Mrs. Bob Tulp for organizing the "World Changers" stop in
Bremerton. He also announced that the next Ferry Advisory Meeting will be Tuesday, July
27th at 6:45 P.M. at the New City Hall located in Port Orchard.
President Shepherd reported on his attendance at an event to welcome the "World
Changers", and was overwhelmed at their enthusiasm. He also attended a neighborhood
meeting with Gregory Way residents to discuss parking, traffic and speeding issues, and an
Open House in celebration of the Literacy Council's 20th Anniversary. He encouraged the
public to view their newly remodeled quarters and computer lab located in the basement area
of the downtown library. Lastly, he spoke from personal experience to convey the
importance of bike riders remembering their helmets.
MAYOR'S REPORT
Mayor Hotton reported on the accomplishments from the "World Changers" and
complimented them for their efforts, as well as City staff and all others in the community who
helped make this event possible. She stated they would be back next year, and encouraged
any citizen who would like to apply for a rehabilitation of their home to call 478-5275.
Mayor Horton commended Captain Baugh for all that he did for the community during his
command of Puget Sound Naval Shipyard, and wished him much luck on his new endeavors.
LEGISLATIVE REPORT
President Shepherd addressed the questions asked by Susan Brown at the July 14, 1999
City Council meeting regarding the timetable for rewriting the City Council Rules &
Procedures. He provided summary of issues that Council has been working on for the past
several months, as well as issues they hope to address in the next few months. However,
citizens can now submit any ideas or suggestions they would like to contribute regarding the
updating of the City Council Rules & Procedures. President Shepherd also reaffirmed that
no personal attacks or derogatory comments towards the Council, members of the public, or
staff would be tolerated.
PUBLIC RECOGNITION
Don McDaniel, Corporate Relations Manager with Puget Sound Energy, provided an update
on deregulation at the Federal and State level, as well as Puget Sound Energy's position.
He also provided additional information on non-exclusive franchise acquisition.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 3 of 8
Paul Drnjevic speaking on behalf of Citizens for Safe Water reiterated his concern that
Council is not addressing all questions regarding disposition of fluoride equipment.
E.L. Sturdivant voiced his concerns and frustrations with the City's Animal Control
Department, particularly the lack of response to messages left on the Department's voice
mail system, and the process of filing a complaint. He also had concerns with parking on
Halverson Street.
John Becker asked for better communication, such as periodic updates of major projects
such as the Gateway Project, and to provide this information on the City's web page.
Carol Atkinson, Bremerton Main Street Association, invited the public to attend the Concerts
on the Boardwalk. For more information about the Concerts or the Blackberry Festival, she
provided a new web site address, www. bremerton.mainstreet. orq.
Gordy Byrd discussed plans for a "walk-a-thon" to benefit a "Byrd's Nest" homeless shelter.
Susan Brown looked forward to participating in discussions on the updating of the Council
Rules & Procedures.
Roy Mclnnis volunteered to assist the City in any way he can.
8A - BID AWARD FOR TIMBER SALE 99-1, #AB99-136
Bill McKinney, Forestry Manager, stated the timber sale was planned and prepared within
the guidelines of the Water Utility's Forest Management Plan and the Washington State
Forest Practice regulations. A forest practices permit has been obtained for this harvest
operation. Harvest will be of both even-age and shelter-wood types on a total of 31 acres.
Total estimated harvest volume is 600,000 board feet. Advertisement for bids was prepared
according to administrative procedures and bids were received on July 19, 1999 (summary
is attached as Exhibit B). It is recommended that the City Council award the timber sale to
Rayonier for the amount of $312,540.00.
John Becker asked what was the projected revenue, and what was the next closest bid. Mr.
McKinney stated the minimum value was $150,000, and the second high bid was
$290,115.00 for Timber Sale 99-1; and the minimum value was $75,000, and the second
high bid was $117,362.00 for Timber Sale 99-2. Mrs. Arends commended staff for their
efforts in getting very favorable bids.
Mr. Overson asked why a tree-count was not included in the second timber harvest. Mr.
McKinney responded that Timber Sale 99-2 was merely a "thinning."
#1420 M/S/C/U (Montgomery/Farr) Motion to approve and authorize the Mayor to execute
the attached Bill of Sale and Contract to Pay for and Remove Forest Products from City
Lands for Timber Sale 99-1, with Rayonier for the amount of $312,540.00, in accordance
with established administrative policies and procedures.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 4 of 8
8B - BID AWARD FOR TIMBER SALE 99-2, #AB99-137
Bill McKinney, Forestry Manager, stated the timber sale was planned and prepared within
the guidelines of the Water Utility's Forest Management Plan and the Washington State
Forest Practice regulations. A forest practices permit has been obtained for this harvest
operation. This is a selective harvest of pole quality Douglas Fir timber on a total of
approximately 22 acres, Total estimated harvest volume is 166,000 board feet.
Advertisement for bids was prepared according to administrative procedures and bids were
received on July 19, 1999; Summary is attached as Exhibit B. It is recommended that the
City Council award the timber sale to McFarland Cascade for the amount of $126,371.00.
There were no comments or questions from the pubtic.
#1508 M/S/C/U (Farr/Montgomery) Motion to approve and authorize the Mayor to execute
the attached Bill of Sale and Contract to Pay for and Remove Forest Products from City
Lands for Timber Sale 99-2, with McFarland Cascade for the amount of $126,371.00, in
accordance with established administrative policies and procedures.
9A - ORDINANCE (FIRST READING), AUTHORIZING THE ISSUE OF GENERAL
OBLIGATION BONDS TO REFINANCE THE OLYMPIC COURSE AT GOLD MOUNTAIN
GOLF COMPLEX, AND ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANK,
#AB99-138
Rich Hanna, City Treasurer, stated that the City currently has outstanding $4,605,000 of
Limited-Tax General Obligation Bonds which were issued to provide funds for the
construction of the Olympic Course at Gold Mountain. These bonds mature through the year
2007. The proposed ordinance will refinance the current bond issue with a new one, which
will be structured to mature through the year 2018. The refinancing will provide a lower
annual debt-service obligation over a longer time period. This, in turn, will provide the golf
course operation with greater financial flexibility both in current operations and in future
capital improvements to the courses. The total net-present-value cost of the original issue,
and the refunding issue are virtually the same.
John Becker asked 1 ) Why does revenue not meet projections; 2) What is the comparison
between the net present value of the current loan and the net present value of the new loan;
3) What is the current loan value; 4) What are the projected costs to generate the new loan;
5) Will the City pay any fees to refinance this loan; 6) Will there be any additional costs; 7)
What is the current annual payment; 8) What will the projected annual payment be; and 9)
How much will the City really pay. Mr. Hanna responded that 1 ) projections were off; 2) & 3)
the net present value is virtually identical to the value of the new loan; 4) & 9) the cost of loan
generation will be approximately $75,000, which is included in the net present value
calculations; 5) & 6) fees and additional costs have also been included in the net present
value calculations; and 7) & 8) the annual payment on the new debt service will be
approximately $400,000 per year. He explained the current debt service is slightly higher
than that, but will grow to almost $750,000 beginning in 2001, which is what the City is trying
avoid). He stated the approximate total principal and interest, if current bonds ran to
maturity, would be $5.7 million; and the new bonds will be approximately $6,150,000.00.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 5 of 8
Mr. Montgomery asked what is the net affect to the Parks Department if this does not pass.
Mr. Hanna responded there would be no money coming from the golf course operation to
fund the Parks Capital Improvement Program for the years 2001 to 2007.
Mr. McConnell raised concerns that golf course funds are being generated for other parks.
Mayor Horton stated the existing Cascade course was funded with State grants, with the
stipulation that funds would be put back into Parks Capital, and it has been the policy of the
Council up to this point to spread the net revenue among all parks.
Mr. Farr was concerned about the previous revenue projections and asked for reassurance
regarding the revised revenue projections. Mr. Hanna explained that in 1994, a firm was
hired to perform a market analysis, which essentially showed his own revenue numbers to be
"conservative". Analysis showed the market to be under served. Subsequently, other
developers looked at the same market and a great deal of construction of new golf courses
then occurred, and he admittedly regrets not seeing that "dynamic" at the time. He further
stated the new financial. projections for the golf course at this time are based on 60,000
rounds per year on the Cascade Course, and 50,000 rounds per year on the Olympic
Course, which he believes are realistic numbers. He cautioned that this is a "weather
dependent" business, which was also a factor in the original miscalculations. He pointed out
that although it was an unusually wet spring, the course is doing very well. Mayor Hodon
reminded the Council that although Mr. Hanna's revenue projections were a little bit off in this
instance, his track record speaks for itself. She further explained that if the bond market had
been more favorable at the time the bonds were originally financed, they wouldn't need 'to
refinance.
Mrs. Arends said she would hate to see no other improvements possible for other City
parks, since the parks are a good investment for now and the future. Mr. Overson believes
this is a better deal and a smart move for the City. He appreciated Mr. Becker's comments.
TAPE #1633
#0114 M/S/C/U (Montgomery/Arends) Motion to approve the ordinance, authorizing the
refunding bond issue on first reading.
10A - RESOLUTION NO. 2713, AUTHORIZING THE CITY TREASURER TO MAKE
APPLICATION FOR BANK CREDIT CARDS, #AB99-139
Rich Hanna, City Treasurer, reported that in some portions of the City's business, use of
bank credit cards is the most efficient and cost-effective method of payment. In order for the
City to have this payment option, the issuing bank, Seafirst, requires a statement of
legislative approval to be included with the application documents. The proposed resolution
is intended to fulfill this bank requirement. Mr. Hanna further added that he has worked with
the State Auditor, as well as the City's internal Auditor, on this issue. Our Senior Center
travel programs need a better method of payment for services other than the current practice
of relying on staff to use their personal credit cards.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 6 of 8
Mayor Horton showed support for providing credit cards and indicated that the concept of a
credit card is currently being used by City employees for gas purchases and for particular
retail purchases.
John Becker asked the cost and what internal control process will be in place, and why did
the other City credit cards not have to be approved by Council. Mr. Hanna responded 1)
There are no costs associated with the credit cards; 2) Controls are included within a draft
policy which limits purchases to purchase orders, general claims, and advance travel
purchase. There will be limits made to the number of cards issued and credit limits.
Mr. Overson asked what controls would be in place to ensure the City does not get left with
any "unpaid" balance or additional charges. Mr. Hanna stated that there is more protection
in using credit cards than in issuing checks for purchases in terms of receiving refunds.
Mr. McConnell requested clarification on the process of activity sign-ups and purchasing of
services. Mr. Hanna answered that there is a sign-up period prior to the purchase of
services.
Mr. Olsen wanted to know how often would there be a purchase made by credit card rather
than purchase order, such as a computer. Mr. Hanna emphasized that purchases made by
credit card rather than purchase order are rare.
#0649 M/S/C/U (Montgomery/Overson) Motion to approve Resolution No. 2713 authorizing
the City Treasurer to make application for bank credit cards as needed.
11A - PUBLIC HEARING AND RESOLUTION NO. 2714, REGARDING THE RECOVERY
OF FEES FOR THE ABATEMENT OF DANGEROUS CONDITIONS ON THE PROPERTY
LOCATED AT 2039 WHEATON WAY, #AB99-140
Janet Lunceford, Building & Development Specialist II, reported that on April 3, 1998, the
City boarded up the former Bridgetender Restaurant located at 2039 Wheaton Way, after the
owner, Sam Fitz, failed to do so as ordered by the Building Official. The building had been
vandalized and was being used as a harbor for vagrants and vandals, as reported by the
Bremerton Police Department. In the interest of not cost saving, the building was not
boarded on the water side, since the windows had not been damaged and it appeared
difficult for anyone to access the building from that side. On May 6, 1999, the Police
Department reported that the water-side windows were broken, and the building was again
being used by vagrants. Public Works boarded up the remaining windows and doors. The
cost of the work done by Public Works totaled $379.80. Administrative fees will not be
charged on this item because they were included on the lien filed in 1998 and this action is a
continuance of that abatement. Council must now decide if the fees are just and reasonable,
and how they should be collected.
There were no comments from the public.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 7 of 8
#0778 M/S/C/U (Farr/Montgomery) Motion to pass Resolution No. 2714 and order that the
fees incurred for the abatement of dangerous conditions located at 2039 Wheaton Way be
collected as reasonable abatement costs and become a lien against the property.
11B - PUBLIC HEARING AND RESOLUTION NO. 2715, REGARDING RECOVERY OF
FEES FOR THE ABATEMENT OF GARBAGE AND DEBRIS ON THE PROPERTY
LOCATED AT 315 & 317 E. 30TM STREET, #AB99-141
Janet Lunceford, Building & Development Specialist II, reported that on March 22, 1999, an
Order to Remove Refuse within 72 hours was posted on the property located at 317 E. 30th,
ordering that the carpet, padding, and other debris and garbage be removed from the
property. The certified mail receipt shows that the owner received the notice on March 26,
1999. On April 2, 1999, Public Works removed a roll of carpet pad from the common
driveway between 315 and 317 E. 30th. The cost of the abatement, including administrative
fees, totaled $384.06. Council must now decide if the fees are just and reasonable and how
they should be collected.
Theresa McDonald responded that she is a tenant at the subject address, and described the
piece of carpet picked up by the City as a "very small" piece. Mr. McConnell questioned the
cost of the abatement for a "small piece" of carpet. Ms. Lunceford responded that 1-hour is
the minimum time charged, plus the truck and the dumping fee. She further added that only
half of the administrative fees were added in this particular case. President Shepherd
asked why only half of the administrative fees were charged. Ms. Lunceford responded they
are going to request the other half of the administrative fees to be paid by the tenant who
initially generated the carpet.
#1124 M/S/C (Montgomery/Overson) Motion to pass Resolution No. 2715 and order that the
fees incurred for the abatement of garbage and debris located at 315 and 317 E. 30th Street
be collected as reasonable abatement costs and become a lien against the property.
Vote on motion: In favor: Olsen, Montgomery, Arends, Farr, Overson, Shepherd
Opposed: McConnell
Motion carried.
11C - PUBLIC HEARING AND RESOLUTION NO. 2716, FINAL PLAT FOR 5 LOT
SUBDIVISION IN SINGLE-FAMILY ZONE; APPLICANT: GERARD VERGEER;
LOCATION: NE CORNER OF SHERIDAN ROAD AND RICKEY ROAD, #AB99-142
Jon Holan, Planning Manager, reported that on January 20, 1998, the Planning Commission
recommended approval of this project as a Preliminary Plat for single-family unit
development. On February 25, 1998, the City Council approved the project as a Preliminary
Plat for a single-family unit development with conditions. The Planning Commission on June
15, 1999 recommended approval of the final plat as presented in the Staff Report which is
attached. There were no substantial issues discussed at the Planning Commission meeting.
The applicant has satisfied all conditions of the preliminary plat and all applicable
requirement of RCW 58.17.
TAPES #1632 & #1633
City Council Reg. Mtg. Minutes
July 21, 1999
Page 8 of 8
President Shepherd announced this was a Quasi-Judicial issue, and asked if any Council
Member believed their participation would conflict with the "Appearance of Fairness
Doctrine", and if they should be excused? Mr. Farr stated that he had previous contact with
Mr. Vergeer when he sold a home to him in the past. Mr. Montgomery stated he discussed
this issue briefly with a constituent. President Shepherd then asked members of the pubtic
if they believed any Council members should excuse themselves due to a conflict with the
"Appearance of Fairness Doctrine': All Council members remained seated.
There were no comments from the pubtic.
#1360 M/S/C/U (Montgomery/Farr) Motion to approve the Final Map for "Hand's Corner"
Subdivision pursuant to Resolution No. 2716.
With no further business meeting adjourned at 8:00 P.M.
City of Bremerton
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