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HomeMy WebLinkAbout12/07/94TAPE.#1250 UNAPPROVED DRAFT COUNCIL DEC 2 8 199 CITY COUNCIL MEETING MINUTES DECEMBER 7, 1994 #0059 #0078 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, December 7, 1994, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Morrie Dawkins, John Law, David Farr, A1 Colvin, Carlos Montgomery, Bob Winters, Lon Overson, and Richard Neville. Also present were City Attorney Ian Sievers and City Clerk Kathleen McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Reverend David Welch of Chico Alliance Church. CONSENT AGENDA A. Minutes. of Meeting - November 22, 1994 #AB94-253 M/S/C/U(Neville/Dawkins) presented. to approve the Consent Agenda as 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 RCW42.24.090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Farr) on December 7, 1994, the Council does approve for payment those vouchers included and further described as follows: 180498 through 180624 in the total amount of $137,261.33; and Regular Payroll for the period ending November 30, 1994, in the amount of $706,579.35. President Huff-Menees made the following announcements: (1) The swearing-in of the new Police Chief will be Thursday, December 15, 1994, at 2:30 P.M., in the City Council Chambers, and the public is invited; and (2) There will be an Executive Session on Wednesday, December 21, 1994, 5:00 - 5:25 P.M., in the City Council Conference Room, to discuss "Labor Negotiations". COUNCIL MEMBER REPORTS Mr. Winters announced that there will be a District #9 Neighborhood Meeting on Monday, December 26, 1994, 5:00 - 7:00 P.M., at Fire Station No. 2, across from the Westpark Market and Dairy Queen on TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 2 of 21 Kitsap Way. The public is invited to bring their questions, ideas, and concerns to that meeting, and he will present "A Year in Review - My First Year as City Councilman". Also, he reviewed the boundaries for the Kitsap Lake Neighborhood Association, which includes a vast area. north to Erland Point Road, to either side of SR3 and the Power Lines, and to the south at Werner Road. Phil Best will speak at the next Kitsap Lake Neighborhood Association meeting on Thursday, December 15, 1994, 6:30 P.M., at the Cascade Natural Gas building on Kitsap Way. Both County and City residents are invited to attend that meeting. There will also be a January meeting, with details being given at a later date. Friday, December 9, 1994, there will be a "clean and sober" dance sponsored by the D.W.I. Victims Panel, at the West Side Improvement Club starting at 8:00 P.M. Mr. Colvin attended Billie Eder's retirement party this past week. He reflected on a past incident when Billie, as a County Commissioner, brought an olive branch as a goodwill gesture to then City Council President Lynn Horton. He hopes that the attitude she expressed will continue to prevail, and positive communication continues between the County and the City. He mentioned that today is "Pearl Harbor Day", and noted we have come a long way since then. He hopes that we will remember what led up to Pearl Harbor, and quoted a philosopher who once said "those who do not remember the past are condemed to repeat it", and we certainly don't want to do that. He has 'received questions from several senior citizens regarding recycling, that they don't have anything to recycle, but still are forced to pay for it. We need to inform them how are recycling program works. Mr. Dawkins admitted this time of year always brings out the "little boy" in him, and enjoys all the Christmas lights and decorations all over town. He suggested that everyone look around at the fine job of decorating done for the holiday season, and with this being a merry time of year, maybe we could all treat everyone a little bit different for the rest of this year. Mr. Law reported he missed his first Council meeting of the year last week to attend the annual Diabetes Symposium hosted by the University of Washington Diabetes Care Center. He is always impressed with the progress being made, and the understanding and treatment of diabetes as reported by the experts in the field. There will be no District #3 meeting in December, so the next meeting will be Tuesday, January 17, 1995. Details on that meeting will be given at a later date. Mr. Neville thanked Bob Tulp and the Street Department for getting out as soon as the snow fell, and making the streets passable. Another job well done. Thank you. TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 3 of 21 Mr. Overson reiterated Mr. Neville's comments, and pointed out that in a SUN article, it stated the Department of Transportation distributed about 60 yards of sand in the surrounding County, compared with about 120 yards distributed by Mr. Tulp and his crew in the City, and that was in a very short time, then the snow melted. The Street crew is prepared should it snow again, however, he pointed out the City is using a washed sand, and it is not quite as visible as it used to be in the past, so you have to be alert to notice if the sand is down or not, and please drive accordingly. Mrs. Huff-Menees was also thankful to Bob Tulp and the Street Department. She noted she lives on a hill, and needed to get out very early in the morning, and was very appreciative of how quickly the roads were sanded and in very good shape. She also had the privilege of attending a very special ceremony today on the Turner Joy, to acknowledge Pearl Harbor Day. The Department of Defense has recognized the Vietnam Veterans of America, Chapter 169, a Bremerton Chapter, asbeing a commemorative community and were presented today with a certificate of designation and a commemorative flag. Helen Ross participated in that ceremony by pinning on pins on some of the people responsible for that recognition, and it was a very nice event. She congratulated them on having achieved that designation, and the fact they will be a part of a lot of events taking place in September when the Missouri is back in town. MAYOR,S REPORT - NONE President Huff-Menees reminded everyone that because the City Council meetings are televised, there are some rules that have to be adhered to very strictly. Solicitation is one of them. Any solicitation of funds can not be allowed, whether it is for non- profit or charitable organization or not, and also, political solicitations can not be allowed. Please be mindful of that. PUBLIC RECOGNITION Don Atkinson, Bremerton Main Street Association, complimented the Council on the remarkable job done decorating the old Penneys building window. There are now 30 windows decorated in the downtown area, and another 6 spoken for. He announced the kick off of several Holiday Season events beginning Friday night. Roy McGinnis said it was good to hear the Council Members comment on the sanding of the streets. He also commended whoever was responsible for making the streets safer during the recent snow storm. He has lived on Maple Street for a number of years and this is the first year he has seen the sanding truck comeon his Street. He also thanked the Street Department for a job well done. TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 4 of 21 Gordv Byrd wanted to call attention to the fact that he was one citizen who solicited funds at the last City Council meeting, and apologized to anyone who may have been offended. He asked for help in opening a teen center in Bremerton, and said if anyone would like to help create ~ "drug, alcohol, and gang free" place for our kids, to please contact Dale Vaughn at the Silver Castle, 127 Pacific Avenue, 373-6145. He also offered help to any other organization who needs him. Shannon Cook announced a blood drive will be held Tuesday, December 13, 1994, 11:00 - 1:00, and 1:45 - 5:00. Additional information can be obtained by calling Harrison Hospital at 377-3911. 7A - JOINT PURCHASING AGREEMENT/FIRE DEPARTMENT, #AB94-254 As in past practice, it was noted that agencies requiring unique and infrequent purchase of goods such as vehicles, fire hose, MSA breathing apparatus, etc., are in the position to realize a substantial savings, purchasing with other local fire agencies through an Intergovernmental Cooperative Purchasing Agreement (ICPA). Kitsap County's larger Fire Districts - District #1 (Silverdale, District #7 (Port Orchard), District #10 (Chico-Erlands Point), District #14 (Hansville,Elgon) and District #18 (Poulsbo), along with the cities of Poulsbo and Port Orchard have already agreed to and executed the attached agreement. This year alone, The Bremerton Fire Department was allowed to buy 500' of hose at a substantial savings because the company allowed purchase through the County's ICPA. Public comment - none. Mick McKinley, City of Bremerton Fire Chief, stated that this is a very basic thing that the Bremerton Fire Department has been doing for a number of years, and still comply with all City bid laws. Mr. Neville questioned Mr. McKinley if he had any idea how much money this would save his department over the year? Chief McKinley stated that would depend upon what type of equipment they would need to replace, but he was not anticipating any major expenditures for upgrading or updating because a lot of equipment was already bought with the 1990 bond issue, so mainly it will be things like hoses wearing out. Mr. Neville asked if this was mainly for supplies or would they also be able to acquire fire trucks? Chief McKinley stated that fire trucks could be purchased, however, he was not anticipating such a purchase in the next couple years. However, this will remain in effect for as long as Council deems it necessary, so its an on-going thing. Some things they are looking #0752 TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 5 of 21 at for the future include consolidated buying on rescue or ambulance vehicles. As an example, with the vehicle Council agreed to purchase last year, there was a savings of around $35,000 - $40,000 by consolidating with someone else on the bid. Mr. Dawkins asked ' if Bremerton had a pretty good working relationship with all of the other fire departments mentioned above? Chief McKinley stated yes, as does the Assistant Fire Chief, who also sitson the Operations Board. The Operations Board meets once a month to discuss purchases they are going to be making -- whether it is as simple as fire fighting gloves or larger items, so they are able to know when somebody is going out to bid to time their purchases for the same time. Mr. Colvin mentioned that there is an escape clause in the ICPA (pg. 2, #6) should the City of Bremerton/Fire Department feel this agreement serves no advantage. M/S/C/U(Colvin/Montgomery) that the City Council approve the attached agreement and direct the Mayor and the City Clerk to execute at their earliest convenience. 7B - 1995AMBULANCE RATES APPROVAL FOR 911 BASIC LIFE SUPPORT (BLS) AID CALLS, #AB94-255 Pursuant to the Ambulance Regulatory Ordinance, ambulance rates charged for 911 BLS aid calls must be approved by Council. Both local companies, Olympic and Bremerton, have submitted requests for rate increases for 911 BLS calls to be effective January 1, 1995. City Clerk staff has surveyed regional ambulance companies for comparable rates and any rate increases. All surveyed companies have raised their rates since 1993 for BLS, ALS (Advanced Life Support), and the array of products and services they provide. Paula Johnston, City of Bremerton License Inspector, stated the ambulance companies have not had an increase since 1993. The City's survey and also the survey done by the manager of Olympic Ambulance Service indicates the rates proposed for 1995 are very competitive with some of the other regional ambulance companies. She reminded everyone that Olympic Ambulance and Bremerton Ambulance are two separate companies, but they do share employees and vehicles. They alternate the 911 BLS calls every other month. Mr. Dawkins stated if anyone has a scanner at home, it is interesting to listen to the number of lcalls made for ambulance service. He stated the City is blessed to have a system that works so well during trying times. He believes we have an excellent fire department. Costs have gone up for everybody, and he believes this is a justifiable request. #0999 TAPE #1250 City Council Reg. Mtg. Minutes Dece~lber 7, 1994 Page 6 of 21 Mr. Farr asked Ms. Johnston, at the time she made her presentations of cost comparisons to Council during Study Sessions', if her summary showed this was the lowest of the surveyed firms in the area? Also, was she aware of any large number of complaints on the service provided? M~. Johnston stated yes, it was the lowest that she could find for comparable services. A1 Duke, Assistant Fire Chief, stated they have not received any complaints through their office. Mr. Law stated that he had heard some numbers on the percentage of bills that are not paid to the company, and felt the public should hear that piece of information. Walter Stubbs, BremertonAmbulance Company, (a contracted EMS consultant who works with many different organizations in the State of Washington) stated there is a rather large "contractual adjustment and bad debt write-off", and it varies month-to-month. On an average, the company will "contractually adjust" or "write-off" anywhere from 25% to 45% of everything that they do. Mr. Law stated he felt that the public should be aware of this and understand that they are a business, and have to get the "lost" money somewhere else, which is from those who ARE paying their bills.. Mr. 8tubbs stated the way the EMS works throughout the United States, is that it is a "cost driven" pricing. In other words, the crews are paid whether they run the calls or not.. Mr. Overson wanted to compliment Mr. Stubbs and the rest of his staff for putting together the information that the Fiscal & Budget Committee had requested. Per his calculations, if this proposal is approved, it shows a 8.5% per customer increase, which is not very much if you consider that it is amortized over 2+ years. It is also not as much as other medical cost increases. M/S/C/U(Farr/Law) approval of the proposed rate increases for 1995 for Olympic Ambulance Company and Bremerton Ambulance Company. 8A - ORDINANCE (FIRST READING) AMENDING THE 1994 BUDGET, #AB94-256 ActiOns taken by the City since passage of the last budget amending ordinance require certain corrections in order that the budget continues to accurately reflect the financial operating plan of the City. Rich Hanna, City Treasurer, stated this was the third and final amending Ordinance to the 1994 Budget. The budget is typically amended during the months of May, September, and December. There is an ordinance under which the City's budget is administered that requires (1) that each department conform to the bottom line of their expenditure authority and (2) that there are "sub-sets" (such as costs for personnel, cost of supplies and services, and the cost of capital) to which the department is also accountable. Common to #1244 TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 7 of 21 a number of the adjustments included in this ordinance is moving money from one of those sub-sets within a department to another, adjusting for events that were unforeseen earlier in the year. Budget Adjustments 94-31 through 94-49, attached to the ordinance, were briefly re~iewe~ one by one. Council had previously reviewed these Budget Adjustments. Public comment - none. Mr. Overson thanked Mr. Neville for going over the proposed ordinance in detail and correcting a few administrative errors. M/S/C/U(Neville/Overson) to approve ordinance, on first reading, amending Ordinance #4489 relating to the budget of the City of Bremerton for Fiscal Year 1994. 8B - ORDINANCE (FIRSTREADING) APPROVIN~ THE 1995 BUDGET, #AB94-257 The Mayor's preliminary budget was presented to Council at the end of October. Since that time, the Council has conducted a public hearing and several Study Sessions in which the preliminary budget has been reviewed and in some instances modified. This ordinance adopts and makes final the preliminary budget with the several changes directed by Council at their Study Session. Mr. Hanna stated next year's General Fund budget will increase over the 1994 budget by 5.4%, and the total budget will increase by 5.5%. Included are a number of Street projects (including the Gorst-Bremerton Connector); Park Projects (including Forest Ridge, Manette Field, and Lions Field); a contribution to the Admiral Theater; major construction projects include the conclusion of Pendergast Park, the beginning of the expansion of Gold Mountain, and the renovation of the 245 4th Street Building; Utilities projects include expansion of the City watershed, replacement of several sections of water mains, construction of odor improvements and disinfection improvements at the wastewater treatment plant; completion of the construction of the Warren Avenue CSO reduction project; the beginning of the Callow Avenue CSO reduction project; construction of the West Kitsap Lake U.L.I.D., and the Wheaton Way U.L.I.D.. Sherril Kinney questioned what was meant by "expansion of the watershed"? Mr. Hanna explained that is referring to the acquisition of an additional 80 acres of land to complete the City's ownership of all of the property that drains into the surface water reservoir, which is combined behind Casad Dam. This is part of the Federal Safe Drinking Water Regulations, that the City be in control of all lands draining into that'reservoir. That is also how the City is continued to be permitted to use that as an unfiltered source of drinking water. #1294 TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 8 of 21 president Huff-Menees concluded that the City is mandated to acquire that land. Mr. Hanna stated yes. It was the opinion of the Utility Administration that it was far preferable to own an additional 80 acres of land in lieu of being forced to construct and operate a water ~iltration plant. Mr. Overson stated this budget has occupied Council's time since October up until just last week, and he wanted to compliment members of the staff and Mayor Horton on a job well done. This has been the least contentious budget Council has had to deal with in a long time. President Huff-Menees echoed Mr. Overson's comments, and felt the Mayor and staff are to be commended. There was a great deal of work put into this budget, and it addressed every significant area of need in the City. It is a very accountable budget. Mr. Colvin felt the budget was easy for Council to adopt since they had a lot of input into it. Mr. Law also wanted to mention that there were a couple of areas where Council did have some changes, as far as the dispersal of the Hotel/Motel tax monies, and Council wished they could have provided every agency with as much money as they requested, however, Council had to look at the "end product" of what was produced in the past when making the decisions of disbursement of funds. Hopefully, the Hotel/Motel tax money will increase next year, and then Council will be able to disburse more. M/S/C(Overson/Law) to approve Ordinance, on first reading, approving and adopting the financial budget for the several funds of the City of Bremerton for the fiscal year 1995, and appropriating the amounts set forth in each budget to each fund in accordance with RCW 35.33.075. Vote on motion: Motion carried. In Favor: Opposed: Overson, Neville, Farr, Law, Huff-Menees, Montgomery, Colvin, Winters Dawkins 9A - PUBLIC HEARING ON CABLE RATE APPROVAL FOR TCI CABLEVISION OF WASHINGTON, #AB94-258 The City became certified by the FCC to regulate basic service tier cable rates and associated equipment and installation charges as of February 1, 1994. TCI submitted FCC Form 1200 - Setting Maximum Initial Permitted Rates Pursuant To Revised FCC Rules. Rates were reviewed for a second time using the FCC's revised benchmark formula for rates in effect February 1, 1994 through July 14, 1994. TCI provided sufficient documentation that verified financial and channel data. Upon review by staff it was determined that TCI's Form 1200 was prepared accurately using assumptions and methodologies consistent with FCC rules. TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 9 of 21 Paula Johnston explained that this was the "second prong" of a "two prong" process that was started and reviewed last summer. The FCC revised its rules mid-stream in initial rate regulations. The cable companies, including TCI, had to resubmit a new application form that used a different type of formula to determine if their rates were in the range that was permitted by FCC rules. This time around TCI submitted good documentation. Upon review, it appears the rates as of July 14, 1994 are reasonable and within the range of the FCC rules. Public comment - none. Mr. Neville commented that it was nice to see that the Federal Communications is keeping a close eye on cable companies and trying to help hold regulations on it. He extended a hearty "thank you" to Paul Johnston for the work that she has done, as well as Dan Clark of TCI in getting their rates in line. He emphasized it is noted within the documentation that TCI will not increase basis service tier rate or associated equipment and installation charges within the Bremerton Franchise area without prior review and approval by the City Council and in accordance with the FCC Rules. #1787 Bob Winters extended a "thank you" to Kathleen McCluskey, Director of Administrative Services, for her involvement in the Cable Franchise process. Mr. Overson stated he noted the City Tax is 2%, but the State tax is 2.13. He questioned if the State was involved in the review process? Ms. Johnston explained the State tax is an excise tax that was in existence prior to when rate regulation came into effect. Mr. Law raised the question as to when the public could expect to see the $3-4 refund that TCI announced would be forthcoming? Ms. Johnston explained TCI has submitted a refund liability of $4.57 per subscriber, which the City reviewed and concurred with. It is her understanding that as of the December billings subscribers will see the $4.57 credit on their bill (a one time credit). Dan Clark, Manager with TCI, stated the $4.57 credit will be reflected in the late December bill through the end of January. M/S/C/U(Neville/Winters) to adopt the Findings and Order approving TCI's Basic Service Tier Rate of $9.87, and approving the Maximum Permitted Rates for associated equipment and installations in effect July 14, 1994. 9B - PUBLIC HEARING TO CONSIDER SURPLUSINGANDSALE OF 265 ACRES IN ANDERSON CREEK BASIN, #AB94-259 TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 10 of 21 The Public Works and Utilities Department recommends surplusing approximately 340 acres in the Anderson Creek Basin. This property was originally acquired for watershed protection for the Water Utility"s surface source from Anderson Creek. This source is currently unused pending further required treatment and the upper watershed was surplused and sold for the McCormick Woods development. The Utility maintains water rights, several important water supply wells, and the system's largest pumping station in the northeast portion of the City's parcel and approximately 20 acres has been retained to protect these facilities. Council is asked to approve surplusing this property and to determine the procedure for sale. Notice of this hearing was advertised, posted on the property and mailed to abutting owners, according to Ordinance #4475. Given the value of the property an MIA appraisal will determine the minimum price and will assume zoning will be comparable to surrounding private lands. It is recommended that a proposal for a negotiated sale to Sciepko and Lund, abutting owners, be accepted. This proposal, in the form of an Option To Purchase, which will allow these owners to invest in property development feasibility studies and marketing over a three year period for development of their own 76 acre parcel in combination with the City parcel. These owners will pay $3,350 if the option is held for all three years in addition to the full current appraised value if the property is purchased. They have also committed to annexation of their 76 acre parcel as a prerequisite to purchase. These are special considerations and conditions of sale over and above the concern for full purchase price which meet the criteria for negotiated sale under B.M.C. 2.78.040. Ian Sievers, City Attorney, made the following corrections: That' the subject area is to be comprised of 340 acres, not the 265 as shown on the Agenda Bill. However, the notices sent out to adjoining property owners and published in the legal notices in the newspaper did reflect the 340 acres. The City will be retaining 40+ acres and the configuration of the two parcels is shown on the map under Exhibit A. In addition to the 40+ acres the City is retaining, which also contains the well heads, an easement was written into this sale that applies to the 340 acres, which are proposed to be surplused. That easement is for additional wellhead protection access to be determined after the Department completes the Wellhead Protection Plan. The second correction is in the amount of the option price itself. The Agenda Bill talked about $3,000 plus time value, which has been changed to $3,000 at initiation of the option and an additional $25,000 for the second option year and an additional $25,000 for the third option year and the last two year payments are applicable to the purchase price. TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page ll of 21 President Huff-Menees asked the "Appearance Of Fairness/Conflict Of Interest" question with all Council members being seated. Bill McKinney Forestry Manager/Public Works And Department, sta~ed he would stand by for questions. Utilities Bruce Morris, 3569 Anderson Hill Road, stated he did not receive any notice of this action. He just became aware that McCormick Woods just received a permit for another development located between the watershed land and Old Clifton Road, which would increase the population in that area by approximately 5,000 people. He felt the increased population would have an impact on their individual wells and felt they would have to hook up to some City proposed water main. He felt the Anderson Hill residents would be pressured into hooking up to future water and sewer services and he did not want to be saddled with Bremerton's sewer bill, water bill not to mention the assessment to his 1/2 acre property. He is perfectly happy with County services and currently his water well works fine and his septic system is functioning correctly. He is greatly opposed to the proposal as presented. If this proposal is approved, he felt the current Anderson Hill residents should be void from having to pay any assessments for water main installation, sewage installation or anything of that. sort. Also, something will have to be done to mitigate traffic at the intersection of Hwy. 16 and Anderson Hill Road. President Huff- Menees asked if a staff member could respond to the notification process issue? Ian Sievers, City Attorney, explained the City used the computerized property records from the County and mailed 60+ direct mailings announcing this hearing. sherril King, 3444 Anderson Hill Road, stated her family recently purchased 6 1/2 acres and the biggest selling point was that it was bordered on three sides by the beautiful watershed. If they had any indication, prior to their purchasing the acreage, that anything like this proposal was in the works, they definitely would not have purchased their acreage. She and her family moved out into the "country" to have privacy and to be away from people and traffic congestion. She found it appalling that 340 acres of watershed land was being offered up for development. She wanted to know if the people interested in purchasing the subject project do not get to develop it into the commercial status, what are their plans for the acreage? She wondered if they would be putting in a housing development or some other type of commercial business? She was also concerned about any impact on Anderson Creek if the proposal becomes a reality. Jim Richmond, 2320 E. 19th, stated he owns 3.75 acres on Anderson Hill Road and his back fence line is the western most point of the watershed. He felt there should be some other alternative uses of TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 12 of 21 the subject property than commercial development. He pointed out there are large chum salmon in Anderson Creek. Last summer a volunteer group did some work in the creek to re-establish a trout run. He has observed numerous deer, foxes and other animals in the watershed property and it is a beautiful setting. At the time he talked with the'Dep&rtment Of Fish and Game, he learned there are federal monies available to develop park land, which he felt was a better use of the subject area. Lawrence Dodge, 3001 Anderson Hill Road, stated his parents had owned property on Anderson Hill'since 1954 and he built a house there in 1976. They have already seen 500 acres go to McCormick Woods, who owns property from Berry Lake to Sunnyslope and they are proposing to build condos, etc.. He felt the City should look into this matter further prior to putting the impact on the residents of Anderson Hill Road. Ollver Nor~by, Anderson Hill Road resident, stated he has lived on his property since 1968, and is not always opposed to progress, but he does believe there are other uses for the subject property. He felt Kitsap County could use more park land. Also, he was never notified that McCormick Woods Land Company was trading property with the City. He did meet the City's forester on the watershed land when a airplane went down and at that time the forester indicated that area belonged to McCormick Woods, not the City of Bremerton. He believed the current Anderson Hill residents should benefit from any progress, such as installation of a natural gas pipeline. He also doubted that City water or sewer lines will be brought in so the current residents could hook up if they wished to. He pointed out the water line was installed up the valley and he believes a future sewer line will go out on Old Clifton Road to the City of Port Orchard. He asked how does one person get to purchase the subject property and why isn't it beinglet out to the public so more bids could be initiated? Ian Sievers stated the City has a Surplusing Ordinance that was passed within the past year. The presumption is to get the highest market price possible and most sales will be put out for bid or offered to the public over a period of time through a broker. However, the City is not required to do that and if there are other considerations through a negotiated sale, as in this instance over and above the assurance that it will get the full market price, they can negotiate with one buyer. In this case, the current market price will be determined through an appraisal process contemporaneous with the sale. This particular buyer has some adjacent property to west of the City's parcel, which they are willing to annex, that is zoned General Business Park, and is proposed to be developed as part of a single project with the City's property. The joint development of those two parcels is the additional consideration to the City. Mr. Nordbv stated if that is correct, then why not open it up to the TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 13 of 21 public for sale. He did not feel it was fair that the City of Bremerton could sell the site to a selected buyer. Mr. Sievers pointed out that was something the City Council would decide during these deliberations under two separate actions: (1) to declare the subject area surplu~ to the city's needs; (2) to decide how to dispose of the property, to accept the negotiated proposal or to put it out for some other method of disposal. Larry Durfee, 3527 Anderson Hill Road, stated the conditions on Anderson Hill Road are terrible at.best. He cited the difficulty of getting through the "parking lot" of the trailer sales business at the intersection of Hwy. 16 and Anderson Hill Road, and a blind corner at the top of the hill, which has experienced numerous accidents. If this area is developed, he wants to know how people will enter and exit the subject property. It concerns him that the speed limit on Anderson Hill'Road is hardly ever enforced. He realizes the City does not have anything to do with the traffic and speed limit on Anderson Hill Road, but the City of Bremerton is making a decision that will affect he and his neighbors. He is concerned about the safety of children and animals, who live along Anderson Hill Road. He served on the South Kitsap Transportation Committee because he is concerned about the safety on his road. Under current County regulations, signs stating "children playing" "wildlife" or "animal crossing" are not allowed. Visibility at the top and bottom of Anderson Hill is very 'limited as well as other places on the hill. Following a recent snow storm, traffic became congested at~ the intersection of Hwy. 16 and Anderson Hill Road. He talked with Kitsap County Commissioner Win Granlund about the traffic problems and Mr. Granlund's response was that he could do nothing because it is adjoined to the highway. He then talked with the State Department Of Transportation and they indicated they had talked about doing something, but County Commissioner Win Granlund doesn't want to do anything in that area. He pointed out Anderson Creek is a salmon stream and is currently being used to raise trout. The topography of the subject area is terrible due to multiple canyons and ravens and in his opinion not an area that can easily be bulldozed into a more flat terrain. He noted the width of tree trunks of trees on the watershed land and the fact that people growing up in that general area just knew not to trespass on watershed land. He also learned about the land trade to McCormick Woods just by chance. He does not believe that any testimony he or his neighbors give on this issue will have any impact on Council's decision and that they have already made up their mind to approve the proposal. In regard to the Growth Management Act, the Kitsap County Commissioners voted to make the area from Lake Flora Road to the highway and from the Bremerton Airport to the Sedgewick overpass high density, which will allow development up to 9 units per acre. It would be nice to have one area where people could walk and enjoy the way things use to be. Within the next 10-20 TAPE #1250 City Council Reg. Mtg. Minutes December 7, 1994 Page 14 of 21 years Kitsap County will not have very much forested area left except for watershed land. He suggested that the City offer the land up for park land so everyone could enjoy its beauty. He questioned why only 60+ notices were sent out by the City when there are over 125 houses located on that road and the majority of those houses being dn the lower.portion. Davis Saunders stated his concern is water quality and the impact on water usage if the micron firmwas located on the subject site. Mr. Slevers stated he believed that was one of the prospective uses of the property. Mr. Saunders pointed out a newspaper article stated micron company would consume about two million gallons of water per day and the City property location would offer an on-site water source. It was his understanding that the City obtained 20% of their water needs from the Anderson Creek wells. TAPE #1251 He further stated one reason why people were not allowed on the watershed was to protect the surface water in Anderson Creek. When the upper portion was sold to McCormick Woods, one of the reasons for declaring that surplus was that the surface water was degraded to the point where it had to be treated to be used and that treatment was to expensive for the amount of water available.from that source. The reason given for degradation of the Anderson Creek surface water was development in the upper watershed and that development was the McCormick Woods complex, which is located at the headwaters of Anderson Creek. He did not know the recharge area for the wells in that area, but that might be a consideration when deciding whether it is a housing development or industrial usage. He would like to see the water be for human use rather than for making micro chips. He pointed out there are already industrial parks in the County and in his opinion, the topography in that area does not lend itself to development. Ronald S. Sciepko stated he and his wife, Ellen B. Lunde are the ones requesting to purchase the 340 acres. He shares the concerns of the Anderson Hill Road residents, and believes they have some valid points. He currently lives on property located within that area (76 acres) and the points brought out by the local residents are serious concerns to those living in that area, the County and the City. He will have Mark Kuhlman address the pointsrelating to traffic, water and Anderson, Creek, environmental issue of trees and the things that provide the ambiance of that area. It is his intent to create an environment on the 340 acre parcel as well as his adjoining property that he would be proud of. He istrying to retain the integrity of the land and provide a corporate campus environment, such as one would see at a'University campus. He was not interested in creating' a paved over house-upon-house development. He envisions having corporate centers that would have view corridors, walking trails, riding trails, etc. Corporations TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 15 of 21 of the world today, they believe, want to have and want to create for their employees ambiance/quality of life that they have at home. They are going after hightech, biotech corporations - the firms that want to have view corridors of the mountains and water. Three years ago he and his wife started out purchasing parcels of land in an area' the~ thought had fantastic potential, the hills behind Gorst. They felt this area had a very logic traffic flow that included an access onto Hwy. 16. He does not anticipate the flow of traffic going out onto Anderson Hill Road as his 76 acres exits out onto Hwy. 16. He discussed with the Department Of Transportation about the excel and deceleration lanes, which they like and would improve the corridor going through Gorst. The site is located within 1/4 mile of the intersection of Hwy. 3 and Hwy. 16; 45 minutes away from the Seattle Airport, 10 minutes from two ferry services and currently power run across the front of the property and is only 1/2 mile away from a major power station, which Bonneville brings into the area. The water supply is very large in this particular area as well and there is a natural gas pipeline running across the front of the property, with major gas lines within 1/2 mile of the site. The site is approximately two miles from both the Port Orchard sewer treatment plant and Bremerton's sewer treatment plant, therefore, they would be a logical sewer extension to service the subject area. The site is in the Urban Growth area as designated by Growth Management in the County and contiguous to the watershed property (Gorst/Anderson Creek Watershed) and they have about 400,000 linear feet of contiguous property. He and his wife felt this area is a very logical area to build upon and for the past four years they have acquired the property, living on it, and now have 76 acres they wish to annex into Bremerton as consideration for purchase option on the 340 acres. He has spent a good part of the past two years sitting at numerous Planning Commission meetings listening to what people were saying and one thing he heard over and over was the word "JOBS" - economic diversification. He feels McCormick Land Company is doing a fantastic job with residential property. Kitsap County residents have many choices of residential property from $100,000 to $500,000. What he proposes is to fill a need within the City and County to create jobs and listening to that and talking with his wife/partner, they petitioned the County to designate their land as "Business Park". The property as it sits right now goes from sea level to about 400 feet with gradual undulating layers, perfect for development, that affords views of the Cascade Mountain Range, Puget Sound, and the Olympic Mountains. When he first purchased the 76 acres, they were heavily treed and he then selectively logged and opened up the areas, which provided view corridors that look out over Seattle, the shipyard, etc., at the same time affording privacy from site-to-site. He plans to name the project Corporate Campus and it is not his intention to pave over the land. When the decision was made to develop the site TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 16 of 21 into a business park, they decided they wanted to come into the City of Bremerton. They had heard a lot about Mayor Horton and felt she would be a great progressive person and might support their desires. They met with Mayor Horton and shared with her their goals, ideas end visions they have had for the past four years. Currently, there are changes going on in the hightech industry and businesses are looking for places to locate. They asked for the Mayor's help in their endeavor, and she responded in a positive manner. To enable them to go after any company in the world and bring them to Bremerton they asked the Mayor to help by offering them the option to purchase the land adjoining their 76 acres. He urged Council to approve the proposal as presented. Mark Kuhlman, Pac-tech Engineering Inc., stated he has been working with Mr. Sciepko on some of the land use approval and studies on his property over the past 6-8 months. He noted the City of Bremerton has development standards, codes, environmentally sensitive ordinances, critical area ordinances, and zoning ordinances. These are duplicated and supplemented in R.C.W.'s and State ordinances. The Department Of Wildlife and Fisheries will be looking after maintaining the sensitive areas for the salmon habitat in Anderson Creek. Most of the details of the project, whatever that may be, will be handled at the time the development is being discussed specifically. He felt the action at this time is to deal with surplusing of the property and the prospects of an agreement for a negotiated sale. He would standby to answer any questions Council might have. Mr. NordbV questioned if other hearings have been held on this proposal? Mr. Slevers stated this is the first hearing. Mr. NordbV asked if there would be other hearings? Mr. Sievers stated the points were well made by Mr. Kuhlman - the decision before Council deals with a narrow issue and that is transference of ownership over this parcel, it does not approve any particular' zoning and it does not approve any actual land development. Those hearings will occur probably within the next few months on zoning and on development after the purchase option is exercised, ownership is put into private hands, and those applications are submitted to the City. There may be additional review processes curtailed with approval of those applications. Mr. Nor~by stated he felt more public hearings should be held on this issue. Bruce Morris stated he felt more review should be given on the wildlife in the area, such as bald eagle nesting sites, etc. Also, the issue of traffic impact and the interchange at Hwy. 16 and Anderson Hill Road need to be addressed. He believes whoever has jurisdiction at that intersection should put in an overpass or some other traffic safety measure. TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 17 of 21 Kathleen McCluskev, City Clerk, read into the record a letter received from Helen E. Havens, 3353 Anderson Hill Road SW, that asked the following questions: (1) Can you document the sources of the water in the Anderson Creek wells? (2) Is this proposal consonant with the ~inclair Inlet Management Plan and with WAC Chapter 400-127 (3) What are the local tribes concerns about the plans for this area and how they might impact water quality, and wildlife habitat?. (4) How will this sale impact our areas' schools? Has the SK School District given an opinion? (5) Is this plan part of the Bremerton's urban growth boundary? Mr. Sievers stated the questions that asked about compatibility with the Sinclair Inlet Management Plan and tribal concerns over water quality and habitat all have to do again with environmental issues. There will be an environmental review that will be done before the property is rezoned from Forest Management and again when any substantial building permit goes through and those hearings will be conducted by the City. Therefore, those issues are not addressed in this transfer of ownership. He is not that familiar with the source of the aquifer in the Anderson Creek area, however, he knows that the wells currently on that site have a capacity of 3.4MGD and they are only pumped to about a third capacity. In reference to impact on schools, this property would be going back on the tax rolls and because of its value would increase the tax rolls and school levy. The area is part of an urban growth area, which was pointed out earlier. Mr. Colvin stated he appreciates the citizens' concerns about the impact this project will have on them and that they deserve an answer to all of their concerns. He felt the City had not done the best possible job in communicating with the residents in that area. If Council surpluses the property for the proposed use, then he felt Council could only follow up with that specific zoning designation when it comes back before them. He asked if the watershed property was already within City limits and if someone purchased it will it stay in the City? Mr. Sievers explained it currently is in the City and itwill stay in the City following any purchase. Mr. Colvln noted the City actually gains by putting this property back on the tax rolls. Mr. Sievers stated that was correct and in the Surplusing Ordinance that Council passed one of the parts of the preamble is that it is the City's policy to dispose of properties no longer needed by the City so that they can go back on the tax rolls. Mr. Colvln felt the issue of traffic and condition of the road could be addressed as part of the development process, however, he wants the citizens to understand what is happening and how it affects them and their neighborhood. Mr. Sievers restated the environmental concerns and also the concurrency concerns, such as growth management on transportation, must be addressed before fezone or development is allowed on this property. It will be Council's job to hold those hearings, so TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 18 of 21 those issues will be addressed. Mr. Overson stated this proposal is seeing the process of change and the beginning of a long process. The concerns of the residents are genuine and mutt be addressed. He believes with growth management and the other elements that the Engineer pointed out with those in place, there is a process that will help insure this change matches the best interest of the owner of the property, the best interest of the people living in that area and the best interest of the County. Examples of development for change is the Bangor Base, and now it is viewed as a pretty nice place. The City does have significant watershed properties that are pristine and will be kept pristine on into the future. He felt it was in the best interest of the City to look at this property as a higher and better use and he was truly inspired by Mr. Sciepko's presentation and one of the best he has heard in a long time. He sees the potential for a quality consideration and believes the process will insure that it is one of the best quality developments and one that rivals the Weyerehaeuser development in Seattle. Mr. Meville asked what percentage of the City water presently being used comes from the Anderson Creek basin? Mr. McKinne~ stated currently up to 30% of the City's water needs can be supplied from wells. He felt the first thing to consider is the land in the Anderson Creek Watershed was originally acquired before the first World War and was the original watershed and it was for the purpose of supplying surface water to the City of Bremerton. Since then, over the last 80-90 years, other sources have been acquired and the surface water from the Union River currently supplies 60% of the City's water needs. The Utility staff has reviewed the water issues on this proposal and it is felt that this portion of land could be reasonably surplused to the Water Utility's needs for protection. And, that the Anderson Creek water source would not be used unless it was brought in through a filtration system. At current water supplies, it is not felt that it is needed or may ever be needed. Regarding the wells that are currently in the well field in the north end of the property, the State currently requires 100 foot as the only required protection area. In reality, the recharge on those wells can come from a long ways outside of that radius. The recharge for the wells currently on the site may not be recharged from City owned property. There will be studies conducted on that issued. The issue for the Utility is that they feel surplusing this property could be done with no detriment to the water supply or water quality. The Water Utility does not just hold land for the sake of holding land...it becomes a disservice tothe ratepayers if there are other uses for that land or better ways to manage the property. On the environmental issues, they would have to be addressed through other entities and other pertinent regulations. He re-emphasized the Water Utility TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 19 of 21 believes that the subject area can be surplused given the retention of the well field protection areas as well as covenant agreement with whoever that landowner might be. Mr. Neville asked how far into the future will our current water sources meet the needs, especially if light industry is brought into the area? Mr. McKinney stated at this point we are in good condition for the foreseeable future based upon projections for growth in .this area and what can be supplied. The Utility is working on other underground sources and there are other surface sources available should the City go to filtration at some future date. Mr. Neville noted there is quite a hazardous materials indemnity clause in this contract and has Mr. McKinneytoured the 340 acres and to the best of his knowledge he knows of no major hazardous materials that may be within the land. Mr. McKinney stated he has been over most of the land and he has not seen anything that would indicate anything of a hazardous nature. Mr. Colvin questioned if he understood correctly that the City is obligated to get land that is surplused to Utility needs back on the tax' rolls. Mr. Sievers stated Mr. McKinney made such a statement and as a Utility manager and to protect the interest of the ratepayers, which again is a discrete fund, for that fund it is his responsibility to see that when properties are not needed for Utility purposes that they are placed back on the tax roll. Just getting the land back on the tax roll is not the issue, but rather to get the purchase price value back into the fund. Mr. Colvin asked if taking such actions would help hold down Utility rates? Mr. Sievers stated yes it would. Mr. McKinnev explained any income that is derived off of Water Utility lands goes back into the Water Utility and used in the most part for capital improvements. Mr. Law stated he concurred in the fact that the citizens expect the City to be fiscally responsible as well as looking for diversity for employment and looking to control the type of industry coming in, however, such statements are not pertinent to this issue. He reminded Council of the action being asked of them and to not get carried away discussing other issues. Mr. Montgomery stated for clarification that the only annexation on this proposal has to do with the 76 acres owned by the developer. Terrie O'Neill, Municipal Services Coordinator, stated that was correct and the Anderson Hill watershed property is already within the City's limit. Annexation is at the request of the property owners and cannot be forced upon property owners. If they did want to receive City water/sewer services, an Outside Utility Agreement is required or to take steps to annex into the City prior to receiving the services. Mr. Farr questioned the timing of the appraisal? Mr. Sievers #1456 #1489 TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 20 of 21 stated the appraisal is to take place immediately upon signing the agreement and the reason for that is if the property is surplused even if the option is not exercised, the City needs to have the appraised value for another potential buyer. If subsequent second or third year option~ are triggered, that appraisal will need to be updated so that it is at least six months current with the exercise of the option. The City has an earlier appraisal that was done in that area in 1990-91, so the City will probably use the same firm for the updated appraisal. Mr. Fare stated he agreed with Mr. Law that Council is being asked to focus on only two items and the first one is whether or not to surplus the property. Since his tenure on the Council, he has been impressed with the quality of staff and the accomplishments in the Water Department. He has every faith that the Utility would not surplus a piece of property that wasn't logical to surplus. On the issue of the negotiated sale, Council just passed the requirements that set forth the ability to take such action and he is a firm believer in those regulations being able to result in a fair sale that benefits not only the people of Bremerton, but also gets the best price for the property. He feels strongly that it will be to Bremerton's advantage to increase the tax base and was encouraged about bringing in new industry into the area. Mr. Colvin asked Mr. Sievers to define a "negotiated sale". Mr. Sievers stated it is an arms length transaction between a willing buyer and a willing seller. Mr. Colvin questioned without notice to the public? Mr. Sievers stated no, the City's ordinance requires notice be given that this will be a negotiated sale and who the prospective purchaser is under that sale. That information was included in the notices that were mailed out and was published in the newspaper. M/S/C/U(Montgomery/Law) to approve declaration of approximately 340 acres as surplus. M/S/C(Montgomery/Colvin) to approve the negotiated sale as forth in Option To Purchase Anderson property. Vote on motion: Motion carried. In Favor: Overson, Neville, Farr, Law, Huff-Menees, Montgomery, Dawkins, Colvin Opposed: Winters set TAPE #1251 City Council Reg. Mtg. Minutes December 7, 1994 Page 21 of 21 With no further business meeting adjourned at 8:06 P.M. KAT McCLUSKE~, City Clerk City of Bremerton KLM/SH-M/me cc: Normal Distribution File/Vault