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HomeMy WebLinkAbout08/14/96TAPE #1398 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES COUNCIL APPROVED AUGUST 14, 1996 #0030 #0046 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, August 14, 1996, at 5:30 P.M., with Council President John Law presiding. Council members present were Bob Winters, Carlos Montgomery, Sherril Huff-Menees, David Farr, Richard Neville, Lon Overson, Cecil McConnell, and A1 Colvin. Also present were City Attorney Ian Sievers and City Clerk Kathleen McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Law and Invocation given by Councilman A1 Colvin. President Law made the following announcements: (1) Council held a Study Session prior to the Council meeting to discuss "Fee Waiver for Olympic Course at Gold Mountain"; (2) Council will hold a Study Session immediately following the Council meeting to discuss "Comprehensive PlanAmendments including Harrison Neighborhood Plan". (3) Council will hold an Executive Session immediately following the Study Session to discuss "Review of Personnel Performance". (4) Council will hold a Study Session on August 15, 11:15 A.M. - 12:30 P.M., to discuss "Fletcher Wright, Inc., Ownership Transition". CONSENT AGENDA A. Minutes - July 31, 1996 #AB96-170 M/S/C/U(Neville/Montgomery) to approve 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. M/S/C/U(Colvin/Montgomery) on August 14, 1996, the Council does approve for payment those vouchers included and further described as follows: 200473 through 200662 in the amount of $224,372.70. COUNCIL ~MBER REPORTS Mr. Winters attended an awards presentation at the Redmond Elementary School on August 8th. The program was arranged to thank the many members of the Puget Sound Housing and Community Development Departments. He especially thanked Marylyn Waibel and TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 2 of 20 Debbie Peavler-Stewart for their hard work in administering the City of Bremerton's CommUnity Block Grant Program. Mr. Montgomery reported the August 9th Concert on the Boardwalk drew a good crowd and the next scheduled concert will be held on August 16. On August 12 he attended the dedication of the Volleyball Court at Pendergast Regional Park. He was pleased to see clean-up activity taking place at the corner of 6th & Veneta. Mrs. Huff-Menees reported she has heard some verypositive comments from parents about how much their children have enjoyed the Park Department's summer programs. The Parks Department has had record numbers of children participate in their various activities. Mr. Farr was saddened over two Police officers recently injured in a vehicle accident while pursuing a suspected criminal. He acknowledged how Police Officers are placed in dangerous situations protecting the public, and the affect it can have on their families. He hoped the Police Officers recover quickly from their injuries. Mr. Neville thanked the Parks Department for the resurfacing of the tennis courts at 11th & Warren Avenue. He reminded everyone of "KIDS DAY ON THE BOARDWALK", August 16, 1996, 11:00 AM - 3:00 PM. Mr. McConne11 announced the next District #2 Neighborhood Meeting will be held on September 10, at Fire Station #3 on Olympus Avenue. Mr. Colvin congratulated the winners of the Bremerton Area Chamber Of Commerce Thunderbird Award: Dick Brinkerhoff, owner of Brinkerhoff's Appliance Centers; Robert Schneidler, President and Chief Executive Officer of Kitsap Physician Service Health Plans; and Reverend Lawrence R. Robertson, Pastor of Emmanual Apostolic Church. He announced the next District #1 Neighborhood Meeting will be held on September 19, 1996, 7:00 P.M., at the Sheridan Park Community Center, with Mayor Horton as the guest speaker. Mr. Law reminded residents of District #3 there will be no District #3 Neighborhood meeting in August; however, there will be a District meeting on September 17. Regarding a concern about tall grass and overgrown vegetation at the former Puget Sound transfer substation at 16th & Nipsic, this site was turned over to a subsidiary of Puget Power...Western Pacific Properties. He has been unsuccessful in getting Western Pacific Properties to remove the overgrown vegetation, but the tall grass has been removed. He emphasized Puget Power is a fantastic neighbor to the City, but he has had difficulty reaching anyone at Western Pacific Properties to resolve this matter. He will continue to make every effort to make contact with that company. TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 3 of 20 MAYOReS REPORT Mayor Lynn Horton suggested Mr. Law contact the Fire Department and solicit their help in resolving the problem of overgrown vegetation at the Western Pacific Properties site. At the previous Council meeting, Roy. McInnis reported an incident involving two of his grandchildren becoming locked in a vehicle on a very hot day, and his concern over the City's emergency personnel's slow response to the mother's call to 911. After Mayor Horton reviewed the call record from CENCOM, it was determined that the person receiving the call gave it a "5" priority rating, meaning it was considered a low ranking call, which delayed getting the information to emergency personnel. According to CENCOM's policies, anytime there is an issue in which children are involved, it is to be a high priority call. As a result of their ranking the call a priority "5", it took several minutes before a call was dispatched to the Bremerton Police Department to request a "slim jim" to gain access to the locked vehicle. The response from the Police Officer was negative, so the Bremerton Fire Department was toned out to respond to the emergency call. The Bremerton Fire Department was on the scene five minutes after the last response from the Police Officer, making a total time of 12 minutes from the time the 911 call was made. Police Chief Du Fresne indicated they have discussed this issue with the Manager of CENCOM, who will have further discussions with the person receiving the 911 call, because their handling of the call was against CENCOM's own policy involving small children. Mayor Horton reported she anticipates the opening of the Arvon pocket park in the next two weeks. Also, the City is in the final stages of putting together a skateboard park near the Swimming Pool in East park, and should be open in the near future. Mayor Horton introduced Tammy, Kitsap County Fair And Rodeo Queen. Oueen Tammy gave a run down of the Kitsap County Fair schedule of events, and invited everyone to come and enjoy the planned activities and entertainment starting on August 21. Mayor Horton administered the Oath Of Office to Police Officer John Jerome. Police chief Paul Du Fresne reported the injured officers were responding to a robbery where shots had been fired, and because of air bags in the vehicles, the officers received minimal injuries for the seriousness of the crash. That same evening, other Police Officers identified and apprehend the driver of the vehicle involved in the robbery, and that investigation is proceeding. He also emphasized the serious nature of Police work, and the fact that it can put them in danger. He expressed his appreciation to families of Police Officers, who have to live with the howledge that their family member's work can bring them into dangerous TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 4 of 20 situations. Chief Du Fresne was pleased to report the City organized a team of officers to participate in the Kitsap Rifle And Revolver Club "Courage Challenge", an annual pistol shoot that involves law enforcement teams from throughout the region. The City's team, made up of John Jerome, Russell Holt, Daniel Fatt, and Luis Olan, took the top prize at that event. In the past, he has always worked at Police agencies involved in competitive shooting, and Bremerton has not had that tradition. He would like to see Bremerton Police officers continue to participate in such events, and believes the City has an excellent foundation for a group with the above named officers. PUBLIC RECOGNITION Jack Lefcoski, Kitsap Lake, stated a group has been formed and incorporated to work toward keeping weeds out of the 14 Kitsap County lakes (13 County lakes and 1 Bremerton lake). He provided handouts to Council members relating to the weed problems in all of the County lakes and urged them to read the information. Gordy Byrd reported he attended the Concert on the boardwalk and Concert in Evergreen Park. He also related an incident that he was involved in that brought about Kitsap Transit criminally prosecuting him for a charge that he believes is untrue. De1 Knauss raised the following questions (quoted verbatim except for the addition of the word "Question"): Item i - Minutes from the July 8, 1996, Sinclair Landing Association Meeting of the Board of Directors, paragraph 6 talks about Wycoff Park, City Hall Park, and Evergreen Park. Question - are we getting rid of these parks or improving these parks? Question - what about parks property at the former Bremerton Lumber site and the Salvation Army site? Question - is the City selling these properties or trading them, and what happens to replacing the income from these properties, if we do sell them? Question - since the minutes mentioned City Hall Park, does this mean we are moving City Hall? Item 2 - I requested minutes from Randy/Witt concerning the Gateway CAC Committee. I received a February 21st, 1996 meeting summary. What I am concerned about, even though it doesn't show in the one summary I have received, is that I am hearing talk that this committee and several Council members are still considering one-waying Burwell and Sixth Street. I want to remind Council you did vote against this. Question - is this true and who is pushing it the CAC Committee,SLA, Mayor Horton or certain Council members? Question - will Council member Huff-Menees step down when it comes to any votes on the Gateway issue since her husband, Jerry, is on TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 5 of 20 this committee? Question - who is appointing committees in this City, the Mayor, Randy witt or Parametrix? Also, I'd like to request the Council to collect all correspondence and minutes concerning the Gateway Committee meetings because I do not feel I received everything from Randy Witt. Item 3 - On August 2, 1996, my son and I were at the McCormick Woods Golf Course. We happened to see several Council members, Port Commissioners, County Commissioners, Transit officials, Parametrix officials, SLA members and Mayor Horton attending what appeared tome some sort of meeting. Some of the people spotted were Sherril Huff-Menees, Carlos Montgomery, A1 Colvin, David Farr, Lon Overson, Richard Neville, Don Pratt, Fred Schoneman, Jeff Peacock, Phil Best and Richard Hayes. Question - why was this meeting not announced to the public? Question - was this meeting to discuss the downtown development? Question - why wasn't this meeting mentioned in last weeks Council reports? Question - are we starting to have secret meetings concerning downtown development? Question - who paid for this meeting, taxpayers or members attending? Question - does this mean now that you have had a meeting where there was a quorum of Council members that you should divulge the discussions you had before voting on any issues that might relate to this meeting." Elizabeth Buell expressed her appreciation for the bench placed in the hallway outside of the City Council Chambers. Car01 Atkinson, Bremerton Main Street Association, announced the last Concert on the Boardwalk will be held on August 16. She displayed the 1996 Blackberry Festival poster 7A - WESTSOUND COMMUNITY ACCESS TELEVISION CONTRACT, #XB96-157 The attached Interim Services Agreement transfers management of governmental programming to Westsound Community Access Television (WCAT). As you will recall, the City entered into an Inter- governmental Cooperation Agreement with the County to establish a non-profit community access management organization. A Board of Conveners (local residents) with the assistance of a consultant and County and City staff, developed the Articles of Incorporation and By-Laws in 1995. They selected, through an open application process, the first Board of Directors for the new corporation in September 1995. Since that time, the new board has met on a regular basis and hired the new WCAT Executive Director, boyle Detroit, in May 1996. The actual transition to WCAT will take place in the Fall. In the interim, in order to assure a smooth transition, it is recommended that WCAT assume management responsibility for BCAT and the employees currently managed by the City. We will continue to TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 6 of 20 receive the same services. This contract is for the period 8/01/96 to 12/31/96, and provides for monthly payments to WCAT of the funds currently budgeted for salaries for the 1.5 employees, and part- time funds for Bob Neal's continuing services to Inside Bremerton. The remaining funds, approximately $7,000, will be used to upgrade equipment in the Council Chambers. The attached agreement is solely for-the provision of governmental services. At the conclusion of our negotiations, an Operating Agreement will be presented to Council, which will cover the over- all operation and management of Public, Education, and Governmental Access. The County has concluded franchise negotiations and signed an agreement with WCAT. Doyle Detroit, Manager of WCAT, assured the City Council that WCAT will continue the services the City is currently receiving and adding to them slowly as they work through the change over process. She emphasized the cooperative manner in which TCI has worked with WCAT and offered the use of their studio for another year, if needed. She is also in the process of looking at upgrading TV cameras and microphones in the City Council Chambers. Elizabeth Bue11 raised a concern that Councilman Huff-Menees microphone may be defective because it is hard to hear what she says. Mr. Montgomery asked Ms. Doyle to consider situating a TVcamera so that members of the audience can be shown as well. Ms. Doyle stated that idea has already been discussed and included in her proposal to the Director Of Administrative Services. She is looking at the possibility of using robotics TV cameras in the Council Chambers, which could be managed by one individual from within the equipment booth. Mr. Colvin asked under the new setup for cable access television will Bremerton City Council meetings be telecast throughout the County? Ms. Detroit explained most of WCAT's work with the County will begin when the interconnect between Falcon Cablevision and TCI Cablevision is completed. That interconnect involves a 6-month calendar, and notice was given to Falcon by Debby Broughton, Kitsap County Director Of Administrative Services, to begin the interconnect on June 21. Ms. Detroit anticipates it could take 4-5 months before the actual interconnect enabling both systems to see the same programming at exactly the same time. Mr. Winters referenced page 2 of the contract.. Section 1, and asked if rerunning the City Council meetings on Thursday was being dropped? Joan Dimgf{el~, WCAT Board member, stated no, it was her understanding the additional airing of Council meetings would continue. Mr. W4nters suggested that the contract be amended to TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 7 of 20 include the re-running of Council meetings would be maintained. He asked Ms. Dingfield's opinion in keeping Bremerton's Citizens Advisory Cable Committee? Ms. Dingfield stated she anticipated WCAT having a great deal of citizen involvement for both the City of Bremerton and throughout the County. This is an organization that is very dependent upon volunteers. Mr. Winters asked if robotics type television cameras are used, what happens to the fine volunteers that are gaining experience to possibly go into professional filming/camera work? Ms. Detroit stated such individuals may be used in the control room operating the robotics cameras; and many buildings are using this type of equipment. She has no intention of have "staff only" in the control room. In addition, she hires from the volunteer pool. Mr. Neville stated his excitement over WCAT becoming a reality, and seeing it progress into the County-wide stage; and everything in the City's current access program would continue, with more added as time goes on. He is anxious to view Kitsap County Commissioner meetings on TV. Ms. Detroit stated her Board of Directors has tasked her with the idea of having three access channels within three years. Mr. McConne11 referenced Section 7 - Termination of the Contract, and questioned if it was appropriate to have the right of termination with 30 days written notice, but to avoid termination by curing any such breach within 90 days of notification?. Kathleen McCluskev, City Clerk, explained the original language came from a longer term contract, which she had hoped to have in place sooner, and if that had happened, that particular language would have made more sense. Ian Sievers, City Attorney, suggested having 5-days for correcting a breach. Mr. McConne11 asked what happens to the system if the contract is terminated for one of the listed reasons? Mrs. McCluskey explained the "operating agreement" council will have before them in the near future will address that issue. And, that agreement specifies that the City's contribution and the County's contribution to WCAT is returned to them proportionately, which means that all of the assets of the corporation, equipment, money, etc. If the City terminated the contract, we would get the City's share back and then the option would be to contract with someone else or start it up again and operate it ourselves. ME. MoConne11 stated then Channel 12, as we know it today, could cease to exist for Bremerton, if the contract was terminated. Mrs. McCluskeV stated yes, if the contract was terminated, the City would have a designated cable access channel. She suggested changing curing of the breach to 10 or 14 days, which would make more sense in the context of this shorter term contract. Ms. Dingfield emphasized the amount of cooperation WCAT has received from the City and the County, which is very encouraging to their Board Of Directors. #1761 TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 8 of 20 Mr. Fare thanked Ms. Dingfield, on behalf of the City Council, for the amount of time she has donated to the formation of WCAT. President Law stated he was optimistically looking forward when' there will be three government/education channels, but questioned if he understood correction that at this point to have more than one channel in Bremerton, TCI would have to rewire or take over one of the existing channels? Ms. Detroit stated Mr. Law was correct, and she anticipates TCI will probably be thinking in those lines as they have more product to sell. There is a strong interest in programming on an educational access channel that would have programming for credit ...telecourses, which would benefit the community. She believes the first expansion channel to come will be an educational access channel. M/S/C/U(Neville/Winters) to approve the interim contract with WCAT to provide governmental programming with the noted changes of the City Council meetings to shown weekly and rerun at least once each week; and under Section 7 - termination, the curing of a breach time be changed to 14-days upon notification. 7B - LEASE/AGREEMENT WITH OME-COMM CORPORATION FOR USE OF CITY OWNED PROPERTY, #AB96-171 The City Council is requested to approve the Lease/Agreement between the City and One-Comm for lease of City owned property adjacent to Old Belfair Highway for purposes of constructing and establishing a communications receiving and transmitting facility. One-Comm desires lease of the property for five years, following which an option may be exercised for an additional five years. Initial payment will be $5,400.00 per year, and will change subject to local CPI upon the anniversary date of the lease. Ian Sievers, City Attorney, noted Council was provided an additional insert, a single paragraph, which is substitute text under Paragraph 4 (d) Additional Consideration. That paragraph deals with rent, base rent, utility charges, and rent increases under (c) and (d) was an additional consideration for the City or CENCOM to locate a transmitter onto the facilities constructed by OneComm; and the substitute tax simply elaborates on that additional. Public comment - none. Mr. Overson stated he expects the City has a rather valuable site, and that it provides an opportunity for a tower that would reach areas of the region that cannot be reached any other way. It concerned him that the City was leasing out a valuable City asset for an annual rate of $5,400. Paul x~ces, Public Works & Utilities Department, stated $5,400 per year for that particular site does TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 9 of 20 seem cheap at first glance; however, that price will increase, plus the fact the City will have an antenna site on the tower, at no charge, for CENCOM purposes. Additionally, should OneComm decide to sublet any additional space on the tower, the City of Bremerton would receive revenues (annually) on that activity, on a frequency basis. There'is an industry standard of $250 per frequency. Mr. Lucas noted OneComm has stated they will just be constructing the tower and using it for their own purposes the first year. Mr. Winters stated when he attended the AWC Annual Conference in June 1996, a presentation was made to the conference delegates that alerted governmental bodies about the siting of cellular towers because of the new data that is being developed as part of the wireless technology. The information given stressed there is a lot of money to be made in this business, and it is being made at the expense of the taxpayers' property with the industry using up 40% of it and making tons of money. He asked Mr. Lucas what he used to base the $5,400 annual lease amount? Mr. Lucas stated it was based on an average of what the City is charging for other sites at the present time. The range of tower site leases is $130.00 per month to $2,200 per month, with the average being $620 per month. Mr. Winters stated the state of data communication through digital technology and the movement of that industry is much faster than government. The City is using up to 8% of usefulness at this point and well over 40% is being used in the private sector. He referenced the city of Clyde Hill and the fact their Municipal Code states that the permits and leases shall be issued on an annual basis only, but the City of Bremerton is willing to give OneComm's desired lease of the property for five years with an option for a second five years, at $5,400. He will not support approving a five-year lease unless it was at a much higher rate, and he highly recommended the City further study digital technology. Mr. Colvin asked the City Attorney if the additional five years was at an escalating cost? Mr. Sievers explained the cost would increase annually based on a cost of living (CPI) increase. There is an option that can be exercised by OneComm for a second five year term and what they have done to start the rent for the second five year term is either to apply the same CPI index for the 6th year or take the current price charged by King County for a comparable site. A survey was taken as to what other jurisdictions were charging, and a Rate Policy was received from King County. The City's beginning rate of $5,400 was well within the factor for a comparable site in King County; however they did say they were reviewing their policies on these types of sites and were confident within five years they would be on top of the industry and have state-of-the-art lease prices. The city of Clyde Hill does have a short term mandated in their Municipal Code; however, their only lease site is on a facility and in a building that is owned by the TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 10 of 20 City or jointly with the City of Bellevue. The City's situation is different in that it is a different kind of lease and rate structure in that the developer is leasing a piece of raw timbered ground and will require OneComm to put in roads, utilities, buildings and tower. At least the typical investment accounting approach to this is that they need a longer term to amortize their investment; however, in the case of Clyde Hill, the site existed on a city owned facility. In Mr. Lucas's answer to Mr. Overson's question, the City's charge on current leases are approximately $180 - $200 per transmitter on the City's facility, which is comparable to the charges by Clyde Hill. The City will charge, on the proposed lease, if OneComm decides to sub-lease additional transmitter spots. Mr. Colvinquestioned in the event of change of circumstances, what provisions are provided within the contract to allow the City to change the cost of leasing? Mr. Sievers stated he could not disagree with Mr. Winters' point about this being a fast evolving industry, which is his concern with a long term lease, but in Mr. Sievers' opinion that is balanced with the cost of the investment by OneComm. He believes, based on conversations with King County, that their figures for leases have gone up faster than the average cost of living, but we don't know how fast the market for these leases will go and the best estimate made at this time is cost of living indicator, but giving another review after five years. Mr. Winters stated Mr. Sievers stated King County may be the leader in this technology or may have fallen behind. In reality, from his biased opinion, finds that those individuals speaking before the delegates at the AWCAnnual Conference, i.e. Medina City Attorney, Planning Consultant for Medina, and Clyde Hill City Clerk, are moving faster on this issue than King County. He pointed out within the Clyde Hill lease agreement it states that all improvements constructed by the lessee shall become the property of the town upon their installation. The City's proposed agreement states: "OneComm may, at any time, including any time it vacates the premises, remove Onecomm's improvements. equipment. fixtures and all OneComm's personal property from the premises, but OneComm shall not be required to remove any foundations for the tower or e~uiDment shelter nor underground cable conduit." He believes the City should take the position that once OneComm develops the facilities on the City's public land, all remains as City of Bremerton property. ME. Sievers stated he believed that point could possibly be used for further negotiations. Mr. Nevi118 asked the location of Clyde Hill. Mr. Winters explained Clyde Hill borders Bellerue and the reason Clyde Hill was being used as a reference point is because of their expertise in writing an agreement for this type of lease. Mr. Nevil~e noted Mr. Sievers stated this contract is equal in monetary value as one the in Clyde TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 11 of 20 Hill that provides leases for multiple transmitters. He asked Mr. Winters if he had a recommendation for the length of a contract? Mr. Winters stated one year. Mr. Novills doubted someone would want to develop a site under a one-year contract with the added expense of constructing the tower. From the information provided, he was under 'the assumption a road already existed to the site. Mr. Winters asked if Mr. Neville was aware as to how much money this industry is making? Mr. Novills stated no and asked Mr. Winters if he knew that information? Mr. Winters stated it amounts to many millions of dollars. Also, the City of Clyde Hill had several other companies interested in securing space on their tower. The key to the information on this issue provided at the AWC Conference was for cities to maintain control of the public's right-of-way to gain revenue through the use of the land, air space or the conduit in the ground. And, that is why a one year lease is recommended. Mayor Lynn Hotton assured the City Council that she felt confident that the City Clerk, in her negotiation of the proposed lease, would pursue the most benefit for the City. She also pointed out Bremerton is not the Bellevue area. If the City had a population base of one million, she could see the City commanding a higher revenue from the tower. Additionally, OneCommwill not have their equipment up and ready to go until a years time, and would not derive any benefit from a one-year contract. She believes the Administration is tracking this issue and potentially at some point the City can achieve a higher revenue source for leasing such sites. But, she did not believe this was the time, and if the City made the conditions too stringent, the company could walk way from this offer. Mr. Overson asked if this corporation is a business operation where by the City can derive some tax benefit? He did not want anyone to confuse income between the lease of space and the business activity. Steve Meadows, representing OneComm Inc., commended City staff on negotiating the proposed lease. OneComm corporation is not in the business of building a communication site and leasing it for the sake of leasing as a real estate entity. They are in the business of operating a large communication facility, which incorporates cellular phone operation, and dispatch radio, but on a digital secure format, paging and messaging all with one hand held unit. The company understands the community's best interest is served by the co-location of users on a singular tower, if possible. That is why the proposed structure is a lattice type and offers attachment buoys for future operators. OneCommhas received inquiries from many operators regarding the availability of tower space. The City has incorporated a very good control such that they can achieve additional rental income. OneComm is not interested in recouping a real estate return and their only TAPE #1398 City Council Reg. Mtg. Minutes August 14, 1996 Page 12 of 20 expectation from another operator is to not interfere with their needs and to recover some of the costs related to the construction of the facility. In regard to the $5,400 per year lease amount, the price per square foot on a normal capitalized valuation of that income is in excess of $26.00 for that land. They are not building a major road to the site, but will build a spur road to access this particular area; and they will be bringing in utilities to the site as well. The overall investment cost in this project is quite expensive and he anticipates it will come to approximately $400,000, which is not a number they can recover in a one-year time frame. The properties referred to by Mr. Winters in the Clyde Hill area are existing improved properties and the wireless operators are not having to make the initial construction investment. He urged the City Council to view this proposal with a favorable response. Mr. Overson stated then as a business OneComm would be paying appropriate taxes, which would be the primary benefit for the public. Mr. Fare asked if the proposed building would be a modular type structure on a permanent foundation? Mr. Meadows explained the shelter would be prefabricated concrete approved by the State of Washington and the tower itself will be a lattice type structure and constructed on site. Mr. Fare asked Ms. McCluskey the amount of the tax revenue to the City, i.e. B&O, sales tax, etc., as a result of the business? Kathleen MoCluskey, City Clerk, stated she was not sure there would be additional B&O taxes on their business operation. She did not know how to apportion business conducted through the use of that tower. The City does receive the 12.8% Leasehold Tax on all of those sites. Mr. Meadows explained there is no accounting system that can estimate how much traffic is going through any particular entity at any particular time. OneCommdoes pay all State type taxes. As Ms. McCluskey pointed out, they are paying the additional Leasehold Tax, which directly benefits the City. Mr. Montgomerv questioned the actual location of the site? Lucas stated the site is off the old Belfair Highway in the watershed just north of the Forestry Division. Mr. Montgomery asked if there would be any runoff into the Union River from construction activities? Mr. Lucas stated no. TAPE #1399 Mr. Winters stated he wanted to see OneComm do business in Bremerton and to see the City's tax base increase, but he wanted it to be done fairly. He believed Ms. McCluskey stated she was not quite sure if the City would receive additional revenues from the business other than the lease amount and Leasehold tax. Me wanted to be shown where in the lease agreement the City will collect #0180 TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 13 of 20 additional percentages of the gross revenue that is created by the sub-letting of the antennas onto the tower. He believes this is not an accounting guestion, but a billing system to the users of the antenna. He saw nothing in the agreement that entitled the City to any percentage of that business. Mr. Sievers stated the lease for the' sublet leases that may come about during OneComm's lease is open and there may be a way to assess a lease payment based on gross revenue. OneCommcannot sublease space on the tower without the City's consent and subject to a sublease fee. He has not found any lease from the jurisdictions they looked at that did assess based on gross revenue, they were all at a "flat fee" rate. Mr. Meadows re-emphasized OneComm is not in the business of making money off of subleases. They looked at the possibility of locating on an existing tower, but due to their needs they could not. Mrs. Huff-Menees asked if OneCommhad any competitors desiring to lease the subject site? Mr. Luoas stated no. Mr. MoConne11 asked if the tower installation/equipment would adversely impact TV reception in the Bremerton area? Mr. Meadows stated no. Mr. Colvin asked how OneComm made their income? Mr. Meadows explained their business is targeted towards business and service oriented organizations. They make their money by increasing usership and have been in operation in Western Washington since July of 1994. Coverage of their service is from the Canadian border to below Portland and then further across the country. Mr. Colvin asked if OneComm's balance sheet was available to the City of Bremerton? Mr. Meadows stated that information should be available. Mr. Luoas gave a brief statement on how the City currently handles subleasing of tower space and their monitoring procedure. M/S/C(Farr/Colvin) to approve and authorize the Mayor to execute the same, subject to City Administrative Policies and Procedures. Mr. Neville asked for clarification that the site is a 45' x 45' piece of property, and none of the roadway is being leased? Lucas stated the size of the site was correct and OneComm is building the access to the site from the City's road located in that general vicinity. Mr. C01vin asked who will maintain the road? Mr. Lucas stated the City would maintain the City's road, but OneComm is responsible for keeping their access road clear and free of any debris. Ms. MoCluskev explained all of the users of the site have a clause in their contract that they contribute to the maintenance of the main road. #0339 TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 14 of 20 Mr. Overson asked if the City Council will get a review of this at the 5-year option extension? Mr. Sievers stated yes. Mr. Overson wanted assurance that before this contract is extended in five years, it will come back before Council. Mr. Sievers stated he felt it.would be good to review with Council what the comparable King County site charges are for their tower spaces. If it is lower than the simple cost of living escalator, then that would be the price. Mr. Lucas noted additional contracts the City has currently outstanding are being monitored prior to the expiration date and renegotiating even on an extension of an existing contract prior to bringing it before Council for approval. Vote on motion: Motion carried. In Favor: Opposed: Colvin, Montgomery, Huff-Menees, Farr, Neville Overson, McConnell, Winters, Law 7C - APPROVAL OF 8INCLAIR LANDING PROJECT RESPONSIBILITIES BY HOWARD S. WRIGHT, INC., #AB96-172 On August 25, 1995, the City endorsed the selection of Fletcher Wright, Inc. following a request for proposals for the Bremerton Waterfront and Intermodal Terminal Project by Resolution 2517. On December 20, 1995, the City approved a Memorandum of Understanding with Fletcher Wright, Inc. and Sinclair Landing Association to advance the Sinclair Landing Project proposed by Fletcher Wright. Fletcher Wright, Inc. was selected on the basis of its design, engineering, project management, and financial resources. This firm has reorganized to recreate the Howard S. Wright Construction Company, and has transferred full responsibility for the Sinclair Landing Project to this new firm. Howard S. Wright will provide the City and other public partners with essentially the same management team and depth of resources that were offered by Fletcher Wright, Inc. Ian Sievers stated the City Council held a Study Session where this was presented and a representative spoke to the issue. Public comment - none. M/S/C/U(Farr/Montgomery) to City accepts the assumption of all rights and responsibilities of Fletcher Wright, Inc. by Howard S. Wright Construction Company for the Bremerton Waterfront Redevelopment and Intermodal Terminal Project and all subsequent agreements and letters of intent executed between the City and Fletcher Wright, Inc. N~. Montgomery noted this is only a change in name from Fletcher Wright to Howard S. Wright, and Fletcher Challenge will continue to TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 15 of 20 back the Sinclair Landing project. ME. Sievers stated that was his understanding, and more importantly than the financial backing, is the retention of the management team involved in the project. Mr. Winters stated he fully supports the Sinclair Land project as well as this housekeeping procedure; however, he finds it odd that on August 15, 11:15 A.M., Council will meet with representatives from Howard S. Wright Construction to confirm what is being voted on at this time. Mr. Overson stated part of the purpose of the social gathering held on August 2 at McCormick Woods was to meet some of the leaders of the Howard S. Wright corporation, specifically Mr. Johnson. Another meeting was scheduled on August 15 with some of the management to further clarify any concerns about the change in ownership. Based on the knowledge he has gained up to this point, he feels confident this is merely a housekeeping item, and the project is still moving forward with vigor and potential super beneficial results to the City. He strongly supports this proposal. Mrs. Huff-Menees stated in regard to the meeting scheduled for August 15, some of the principals the City has been working with, Craig Norsen and Mark Johnson from the Seattle office, asked different representatives from the City if they would like to meet with Mr. Duff, who is with the parent company and the Council's response was yes. In addition, the event held at McCormick Woods was a social event, and so far, legally, Council members are still entitled to attend such activities. Mr. Montgomer~ stated he and Mr. Colvin were the first Council members to arrive at the McCormick Woods event and he assured the public that not at any one moment did five members of the City Council ever get together. In fact, he doubted there were five Council members in attendance at any one time. Mr. Colvin echoed Mr. Montgomery's comments. Vote on motion: Motion Carried. In Favor: Abstain: Overson, Neville, Farr, Huff-Menees, Law, McConne11, Colvin, Montgomery Winters 7D - ~ORST AREA SEWER FEASIBILITY STUDY, ~AB96-173 The Bremerton/Kitsap County Health Department has declared the Gorst Area of Kitsap County to be a severe public health hazard due to failing on-site sewer systems. The Cities of Bremerton and Port Orchard, in cooperation with Sewer District #5, and the Port of Bremerton, have agreed to participate in a feasibility study to sewer the Gorst and industrial areas. The study will include the TAPE #1399 City Council Rag. Mtg. Minutes August 14, 1996 Page 16 of 20 wastewater treatment facilities of Bremerton and Port Orchard/Sewer District #5. The request before the City Council is to approve the participation of the City of Bremerton in the feasibility study to a maximum amount of $22,500.00. Mayor Lynn Horton stated the Bremerton/Kitsap County Health Department surveyed the Gorst sewer area about 10 years ago, to look at the prevailing septic systems, and found a number of systems that were failing. Since that time, not much has been done to alleviate the situation. This last year the Department re- surveyed the area and actually expanded the number of properties surveyed to see how the septic systems were holding up. Once again, they determined a number of systems are indeed failing. There are two sewer systems in the area: (1) Port Orchard Sewer District #5; (2) City of Bremerton. The Gorst area, although in the County, cannot be serviced by a sewer system from Kitsap County. At some point down the road, Kitsap County may be looking at a new sewer system in the South Kitsap area, but estimates that may still be 5-10 years away. In the meantime, the health situation feeding into Sinclair Inlet continues unabated. It is logical that not only would Bremerton be one entity to provide a sewer system, but also the outfall for the existing sewer treatment plant goes into Sinclair Inlet, and it is imperative that Bremerton, as a jurisdiction, do everything that it can to ensure that the environmental viability of Sinclair Inlet increases. If we don't, there is the possibility that at sometime in the future, the State may request additional regulations. Also, she considers us all stewards of Sinclair Inlet because our community surrounds it. When the Health Department approached Bremerton officials to see what they might do to look at the situation, it was recommended that a consortium of entities and individuals be formed to look at the area, including McCormick Woods, Anderson Hill area, Port of Bremerton, Olympic View Landfill, and the surrounding property. At the meeting, everyone felt very committed to not let another 10 years go by before the problem was addressed. The issue before Council tonight is to look at a feasibility study of the area to see which entity or entities would be best to provide sewer service for the greater Gorst area, in the most economic way possible. The total estimate for the feasibility study is $150,000, and the contribution from the City of Bremerton would be 15%, or $22,500.00. She believes this will be money well spent. John Thomas, citizen, suggested that if pipes are placed from the sewer treatment plant to Gorst, that a second set be placed at the same time, and making the pumping stations a little bit bigger in order to start pumping outflow up to the Golf Course as a source of irrigation. Mayor Hotton responded that a water re-use study is being performed right now, and ways are being looked at to determine ways of treating and utilizing the water. TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 17 of 20 Mr. McConne11 asked who are the members of the local improvement district discussed in the Memorandum of Understanding? What if it is not formed in the required 6 years? Mayor Morton responded that she did not know who would be members of the U.L.I.D., that is part of what the study would look at. Ian 8ievers stated the "6 years" is not part of the binding contract at this point, and is only an intention of the parties. Mayor Morton stated the participants who have been meeting are resolved to sewer the area, and would like to move forward. Mr. MaConne11 stated he hopes they do consider Mr. Thomas' suggestion. Mr. Winters thanked the Mayor for initiating this action, and he fully approves. Mr. Overson inquired if this proposal should include a budget adjustment? Kathleen MoCluskey, City Clerk, stated the funding is already contained in the Professional Services line item of the Wastewater Department. Mr. Overson expressed concern that this situation is representative of Kitsap County and/or the Health Department not doing their job. Legally, anyone with a known point source of pollutants should be closed down. He questioned if a $150,000 feasibility study is really necessary to determine who should be on sewers, when they should be on sewers, and which ones they should be on. This should not be that difficult to determine. Mayor Morton stated in the immediate Gorst area, those comments are correct, but there are other players outside of the immediate area, and she believes somewhere there will be a service dividing line. Mr. Colvin questioned who pays for the L.I.D? Would the City pay? Mayor Hotton stated the participants would pay, although the City has put in a small percentage in an ordinance, that the City could participate. Mr. Colvin asked the capacity of the City's sewer treatment plant, and how much higher can it go? Gone Sampler, Public Works and Utility Director, stated Bremerton is at about 70% of its capacity, and one of the things the study will determine is how much capacity is required to address the issues for sewering these areas. That is why an alternative may be to split the service area between both plants. In that event, there would probably be two L.I.D.'s, one for each service area. The City would be a participant, because the City does own property in the subject area. Mr. Montgomery stated in previous discussions with Mr. Sampley, he learned that the plant does have the capacity, but as a result of the study, depending on what type of industry is put out there, will determine who gets what. It is his understanding that District #5 does not have the capacity. With all of the hookups they need to have south of their plant, they will have problems. ) #1097 #1161 #1195 TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 18 of 20 Mr. Sampley stated Sewer District #5 is in an expansion situation right now; and their concern is what that capacity is going to be reserved for. They are contributing the same amount as Bremerton to this study. Concerning Bremerton's capacity, it is correct that any one industry could come in and consume a considerable portion of the available capacity. The State requires the City to go into a planning stage for expansion when 80% capacity is reached, and preliminary work has already been started. Mr. Farr stated he appreciates the fact the City is only paying 15% of the cost of the study, and is cooperating with other entities. M/S/C/U(Farr/Colvin) to approve and authorize the Mayor to execute the same, subject to City Administrative Policies and Procedures. Mr. Overson doesn't agree with the way this is being proposed, but he does support it. He believes the citizens of Bremerton will get their money's worth. 8A - ORDINANCE NO. 4564 (SECOND READING) EXTENDING PROCEDURES FOR LAND USE PERMIT HEARINGS, lAB96-169 Public comment - none. INTERIM M(Montgomery) to not pass Ordinance No. 4564 on second reading, extending interim procedures for Land Use Permit Hearings and amending Ordinance No. 4550. Motion failed for lack of second. M/S/C(Overson/Colvin) to pass Ordinance No. 4564 on second reading, extending interim procedures for Land Use Permit Hearings and amending Ordinance No. 4550. Vote on motion: Motion Carried. In Favor: McConnell, Colvin, Winters, Huff- Menees, Farr, Neville, Overson, Law Opposed: Montgomery 8B - ORDINANCE (FIRST READING) TO ESTABLISH SEWER FRONT FOOTAGE FEES FOR NORTHLAKE WAY~ PROVID~ CONDTTTON~T. REBATRS OF SURCHARGES UPON ANNEXATION~ AND AMENDING ORDINANC~ NO, 4529, #AB96-174 This request for an ordinance amendment adds two new sections: (1) New Article II.(a)(2)(c) for a change to the Assessment Rates under "Front Footage Fees". This would only affect those properties not included in Utility Local Improvement District (ULID) #327 and assesses a $64.30 charge per foot. (2) New Section 2 for a conditional rebate of surcharges paid by owners outside City limits who have applied for and are receiving City utility services. The rebate would be made if annexation into TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 19 of 20 the City limits occurred within 12 months from the date fees were paid. Method of rebate would be as outlined in the Outside Utilities Agreement. Mr. Sampley stated this Agenda Bill addresses two issues: (1) the issue of latecomers who have recently jointed the Kitsap Lake sewer extension that was recently completed; (2) L.I.D. #327, the properties on Northlake Way. The City has received requests from property owners in that area to be hooked up to the sewer. His department reviewed the cost as close as possible to the cost per foot basis for a front footage fee that could apply to latecomers and calculated that to be $64.30 per foot (minimum 50 foot frontage), which would equalize their cost for hooking up to the sewer with the City residents involved in the L.I.D. The County properties were invited into the U.L.I.D. initially and chose not to participate. Under the City current ordinance, without this modification those hook ups could be made at $12.00 per foot for County residents and $8.00 per foot for City residents. The second issue was one in which they have had some discussion at staff level and with Mayor Horton. The Mayor has initiated the policy, subject to Council's approval, that would reimburse the County surcharge on front footage and facility fee, which is a 50% surcharge, for those properties that would be incorporated into the City within 12 months of annexation. It does not affect the retail rates that would be paid until such time those properties would be annexed. This would be an incentive to try to encourage property owners to cooperate together to bring about an annexation that has some order to it. He urged Council to approve the proposal as presented. Gordy Byrd asked what was the basis for the difference between the $8.00 per foot fee and the $12.00 per foot fee? Mr. Sampley explained both the sewer and water utilities have been developed primarily for the benefit of the citizens of Bremerton. It is common practice throughout the countryto have a surcharge to those users that are outside of the corporate limits of the City. That surcharge on hook up fees is normally 50%, so the City is basically following established procedures in most entities. The $8.00 fee is the rate established for front footage fee and the 50% surcharge fee amounts to $4.00, thereby making the non-resident fee of $12.00 per square foot. Mr. Overson questioned if it was legal for the City to ask non-city residents, who wished to hook up to City sewer and be part of ULID #327, to pay 8 times the amount per foot than anyone else? Tsa Sievers, City Attorney, stated Mr. Sampley may want to explain the basis for this particular utility fee. Front footage billing #1554 TAPE #1399 City Council Reg. Mtg. Minutes August 14, 1996 Page 20 of 20 is to reimburse the average actual cost of the main installation. A separate classification was set up because a more precise actual cost of the main fronting the County. properties was developed. Mr. Overson stated the City does not charge most citizens actual costs. Mr. Sampley stated it should be pointed out that this particular sewer extension went the full length of Northlake Way in order to reach the U.L.I.D. area and all of the parties were invited to participate. He emphasized the real issue is one of equity. Mr. Overson asked, based on equitability standpoint, did Mr. Sievers believe the fee would stand up to scruteny? Mr. Sievers stated possibility the City's other rates are too low, but the fact that some people are getting a break doesn't mean the City can't charge these persons more accurate assessment of the front footage fee. Mr. McConne11 asked the cost of the front footage fee for the U.L.I.D. participants? Mr. Sampler explained the parties in the U.L.I.D were assessed a per hook up assessment amounting to approximately $5,300 per lot. Mr. Winters asked who came up with the idea to create an equity incentive? Mr. Sampley stated he and his staff, with Tim Richard leading the charge, were concerned with the late hook ups and pursued development of the proposed fees. Mr. Winters complimented the Mayor and staff for developing incentives for the public and ways for them to become involved in the system. M/S/C/U(Winter/Colvin) to approve ordinance on first reading, establishing a conditional rebate for utility services provided to individuals outside the City limits upon annexation into the City of Bremerton within a prescribed period of time, and amending "Front Footage Fees" for those properties not included in Utility Local Improvement District (ULID) #327; and amending Ordinance No. 4529. President Law thanked the TV camera crew for their services: Erin Daniels, James Noble, Mike Pebbles, and Nadine Price. With no further business meeting adjourned at 7:56 P.M. / '~T~~H~ENQJ~L-M~ JOE.~~W,~ies ident City Clerk City of Bremerton KLM/JL/me cc: Normal Distribution File/Vault