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HomeMy WebLinkAbout11/09/94TAPE #1246 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES COUNCIL APPROVED NOV 2 2 199 NOVEMBER 9, 1994 #0031 #0053 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, November 9, 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 Rodney Smith of First Christian Church. CONSENT AGENDA A. Minutes of Meeting - October 26, 1994 #AB94-235 M/S/C/U(Neville/Farr) to approve the Consent Agenda as presented. CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24,090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Dawkins) on November 9, 1994, the Council does approve for payment those vouchers included and further described as follows: 179807, 179815 through 179975 in the amount of $494,012.20; and Regular Payroll for the period ending October 31, 1994, in the amount of $697,233.71. President Huff-Menees made the following announcements: (1) Following this meeting, Council will hold a Study Session to hear a presentation by Richard Hayes, Executive Director of Kitsap Transit, on the Bremerton Ferry Terminal and the Passenger Only Ferry Review. (2) The week of Thanksgiving the City Council meeting will be held on Tuesday, November 22 instead of Wednesday, November 23. (3) City Council Budget Review Study Sessions will be held on November 10 and November 14, 5:30 P.M.. COUNCIL MEMBER REPORT8 Mr. Winters announced he is scheduling a District #9 Neighborhood TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 2 of 9 meeting for December 26. The location for that meeting will be announced later and at that meeting he will summarize what has taken place on the City Council for 1994, and what is looked forwarded to in 1995. Also, Kitsap Lake Neighborhood Association will meet Wednesday, November 16, 6:30 P.M., at the Cascade Natural Gas Building on' Kitsap Way. The Department Of Fisheries and Wildlife will make a presentation at that meeting. Mr. Colvin announced the next District #1 Neighborhood Coalition meeting is Thursday, November 10, 7:00 P.M., at the Sheridan Park and Recreation Center. He has invited all candidates for elected offices to attend that meeting. Another item on that agenda will be honoring the memory of Clif McKenzie, a very active citizen in the community, who recently passed away. He thanked Kathleen McCluskey, Director of Administrative Services, and Ian Sievers, City Attorney, for their help in getting this memorial program underway. He congratulated all of the newly elected officials and as far as he is concerned all candidates running for an elected office are winners because we live in a country where you can disagree without being disagreeable and that is enough for him to say "GOD BLESS AMERICA". He, along with many others, have shared a concern about the recent incident where a mother drowned her two small boys. Mr. Dawklns stated an observation that news media people push microphones into political candidates faces almost to the point where they cannot speak. He was pleased to see the City moving ahead with lots of projects and referenced the construction activity on Park Avenue. For those who think the City is doing work on the Warren Avenue Bridge, he wanted them to know that it is actually the State Highway Department doing some earthquake proofing under the bridge. He reminded everyone that progress takes time and does not happen instantly. Mr. Montgomery reported the next District #8 Neighborhood meeting will be held on Thursday, November 17, 7:00 P.M., at his residence, and Pat Harris, Director of Parks and Recreation, will present the Parks Comprehensive Plan. On Friday, November 4, he attended the dedication ceremony for Olympic College's satellite campus in Shelton. He was disappointed that very few people from Bremerton or the Bremerton area news media attended that event. Funding, materials and the property for the satellite campus facility was provided by local Shelton people. Mr. Law expressed his sympathy to the Pappas family for the loss of their husband and father Jim Pappas. The next District #3 Neighborhood meeting will be held Tuesday, November 15, 7:00 P.M., at the Senior Center. Judge William Kamps, Superior Court Judge, will be the guest speaker at that meeting and available to answer TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 3 of 9 questions and discuss topics brought up by members of the audience. Following that, the issue of a "CURFEW" in Bremerton will be discussed along with concerns and issues brought up by the members of the audience. Mr. Farr offered his condolences to the Dick Family, who lost their husband and father Allan Dick. He extended an invitation to all citizens to attend the Council's Budget Review Study Sessions. This is his first time through the City's budget approval process and he finds it to be a real "eye opener". He is now reconsidering his previous opinion, prior to his becoming a Council member, about how the City spends its money. Mrs. Huff-Menees congratulated the winners of the election. Today, she 'attended the Kitsap Regional Planning Council meeting where they heard the recommendations for the' City/County Block Grant funding for 1995. That process was also a very "eye opening" experience in terms of the amount of need within our community and the amount of excellent programs, men and women that are available to meet those needs. She was struck by the difficulty of the job that the Advisory Committee had in making recommendations to the Council and she was then struck by how appreciative she was that there are excellent programs to meet the magnitude of need'within this community. Although there are not enough dollars to fund all requests, it was a nice opportunity to fund programs that can make a difference and she congratulated those who were recipients of the 1995 CDBG allocation. MAYOR'S REPORT Mayor Lynn Hotton reported $1,800,000 Block Grant funds were given away today to various projects and organizations ranging from AGAPE to Big Brother And Big Sisters; several food banks throughout the County; KCAP - case management for the homeless and weatherization programs; Kitsap Community Clinic was given a grant for the purchase and remodel of the former site of Gary's Grocery Store on 6th Street; Literacy Council/close to $10,000; Youth Care West Sound received funds to assist homeless and runaway youth; City of Bremerton received $100,000 for homebuyer assistance; Elks Building project was awarded $300,000; City of Bremerton received $25,000 for a Neighborhood Enhancement Strategy Program (Callow Avenue is targeted for those funds); Admiral Theater received $90,000; City of Bremerton was awarded $100,000 for Waterfront Development Site Preparation (demolition of buildings, undergrounding utilities, environmental assessment). She felt all of the above named projects will be wonderful additions to our community. She expressed her appreciation of the Block Grant Committee for their diligent work in figuring out how to divide up the Block Grant funds. Mr. Overson asked if he understood correctly that there were funds allocated to move along a health facility in the TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 4 of 9 downtown core area? Mayor Horton stated the Kitsap Community Clinic, which is currently housed in the Medical Dental Building, was awarded $300,000 for the purchase and rehabilitation of the vacant grocery store on 6th Street. Mr. Oversonquestioned if that wasn't a rather large facility for clinic use. Mayor Hotton noted that the information provided stated the building is comprised of 56,000 sq. ft., and the Hogan family, owners of the property, are selling the property to the Community Clinic at 50% of its value. Mayor Horton reported she received the 3rd Quarter Report of the Blockwatch Newsletter revealing the following statistics: 79% of all burglaries in the City were residential burglaries and were split fairly evenly between West and East Bremerton; 69% of those burglaries gained entry through open and unlocked doors and windows.. Anyone interested in forming a Blockwatch for their area is encouraged to call her office (478-5266) or the Crime Prevention Officer (478-5231). Mayor Horton read into the record the following letter addressed to Les Pope, Bremerton's DWI Coordinator from the National Commission Against Drunk Driving: "On behalf of the Board Of Directors and Awards Committee Of the National Commission Against Drunk Driving please accept my thanks for your submission to our lOth Annual Awards Program. Your efforts are indicative of the exemplary service being done across this countryto reduce instances of drunk driving and impaired driving. The Committee unanimously voted to present the enclosed commendation award in recognition of your commitment. We hope you will use this recognition as an opportunity to publicize your work in your community. Please keep us apprised of your progress in the fight for safer roads and highways. Les Pope, DWI Coordinator, stated this is the second year in a row that the City's program has received this award. In addition, their project in Kitsap County has received the State Award For the Best Enforcement Program with the Washington State the last two consecutive years. Since his coming to work for the City 2 1/2 years ago, there has been a 50% reduction of alcohol related fatalities in Kitsap County and he credits that with this project and their education efforts. Alcohol related crashes are down 20%, which is better than any County in the State of comparable size or bigger. He cautioned the "job is not done", but progress is being made. For the Holiday Season, they will be continuing their RED RIBBON campaign in conjunction with the Mothers Against Drunk Drivers as well as participating in State- wide emphasis campaigns and some local campaigns in an effort to keep all of our citizens safe. PUBLIC RECOGNITION President Huff-Menees reminded the members of the public, who wish to speak during Public Recognition, that there are requirements for #0837 TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 5 of 9 disallowing solicitations for funds. It is permissible to announce fund raising activities. Shannon Cook wished everyone "Happy Veterans Day" on Friday, November 11. She extended a plea to whoever took the microphones and speakers from the Westside Baptist Church on Sunday morning to please turn themselves into the Police. 7A - REAPPOINTMENT OF JOHN 8TEFFENS TO THE BREMERTON HOUSING AUTHORITY BOARD, ~AB94-236 John Steffens term on the Housing Authority Board has expired. It is recommended that he be appointed to another term. Mayor Lynn Horton stated Mr. Steffens has served on this board for some time and has served it very well. She feels his inclusion on the Housing Authority Board has been an enhancement and urged Council to reappoint Mr. Steffens. Public comment - none. Mr. Overson raised the point that the City's Charter was changed through the vote of the citizens that said City Boards, Committees and Commissions should be comprised of residents of the City. He noted Mr. Steffens was not a City resident and questioned if this position is exempt from that requirement? Mayor Horton stated the Housing Authority Board is except from that requirement and is more inclusive of areas surrounding Bremerton as well as in Bremerton. By the Housing Authority's Charter, they are allowed to have their members exempt from the City's Charter requirements on that point. Ian Sievers, City Attorney, stated the City Charter does allow- exception for the general rule if the City's ordinance provides for exceptions. Mayor Hotton pointed out the Housing Authority is financed through HUD and not a City organization. M/S/C/U(Neville/Winters) to confirm the reappointment of John Steffens to the Housing Authority Board. 7B - PROVISIONAL EXTENSION OF JACQUELINE F. BRIGHT'S TERMAS CIVIL SERVICE COMMISSIONER, #AB94-237 Recommendation that the term of Civil Service Commissioner Jacqueline F. Bright be extended until the vacancy is filled. Mayor Lynn Horton stated because of the City's Civil Service Rules, this position cannot be allowed to just go on for an indefinite period of time. She extended a plea to the City Council and members of the public to provide her with names of individuals who would be interested in serving on the Civil Service Commission. Mr. Neville asked Mayor Horton to describe the duties performed by #0971 TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 6 of 9 members of the Civil Service Commission. Mayor Hotton briefly reviewed their role as overseeing implementation of the City's Civil Service Rules, help make changes to those rules, and hold hearings on disputes between labor and management. She noted Councilman John Law sat on that Commission for 10 years. Mr. Law stated this is a very responsible position, which makes and enforces Civil Service Rules on an appeal basis and is very responsible to supporting the relationship between management and the employees. Mayor Horton emphasized the Civil Service Rules are in place to protect the employees, taxpayers and employer. Mr. Law pointed out an additional requirement that Commission members must be a citizen of Bremerton for three years previous to their appointment. Public comment - none. M/S/C/U(Overson/Farr) to provisionally extend the term of Jacqueline F. Bright to the Civil Service Commission. Mr. Law noted Mrs. Bright has given sage advice to the Civil Service Commission and it is very generous of her to continue in that capacity. 8A - ORDINANCE #4491 (EMERGENCY READING) AUTHORIZING THE ISSUANCE OF $5,000,000 LTGO BONDS FOR THE EXPANSION OF GOLD MOUNTAIN GOLF COURSE ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANK ANDDECLARING AN EMERGENCY, #AB94-238 The proposed Ordinance will authorize the sale of $5 million of councilmanic bonds to finance the expansion of Gold Mountain Golf Course and related expenses. Additionally, the proposed Ordinance accepts the purchase offer of Seattle First National Bank which was negotiated earlier today, and conditionally accepted by staff on the recommendation of the City's financial advisor. Rich Hanna, City Treasurer, stated the Ordinance does authorize the sale of 5 million dollars of Limited Tax General Obligation Bonds. The proceeds of those bonds will finance the 18-hole expansion at Gold Mountain Golf Course, will replace the existing maintenance facility, provides the additional maintenance equipment required by the doubling the size of the course, and provides money for the maintenance and other expenses during the growing period of the course prior to its coming into use. Mr. Hanna noted Jane Towery from Seattle First National Bank, underwriter of the issue and Mr. Dick King from Lehman Brother/Seattle, who is acting as the City's financial advisory in this transaction, are present and available to answer questions. During the Council's pre-study session, he provided several documents: (1) update of page 3 of the ordinance, which includes TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 7 of 9 the maturities and coupons on the bonds based on the pricing decisions that were made on Tuesday, November 8; purchase offer from Seattle First National Bank reflecting pricing decisions that were made on November 8th; and the Bank's offer to purchase the bonds upon that basis; revised Proforma that projects the financial performance of the golf course during the time of construction and on into the future as the expanded course comes into play and begins to generate revenue. He pointed out that the City feels very comfortable that the debt service the City is obligating itself to in approving this ordinance is well within the means of the golf course to deal with after the expansionis brought on line. Also provided was a summary of pricing information from Lehman Brothers giving all manner of background information, explaining the terms and providing a bit more landscape relating to all of the financial machination that took place bringing the bonds to market. The proposed ordinance was prepared by the City's Bond Counsel Foster, Pepper, and Shefelman of Seattle, and does contain emergency language, which requires a unanimous vote of the City Council. The reason for asking that this ordinance be passed on an emergency basis is not the result of lack of planning on the part of the Council, Mayor or staff, but is a result ofthe very dynamic atmosphere of the bond market. In order to bring this financing on line at the lowest possible cost trying to minimize the market exposure that the City is asking the Bank to accept, we minimize the amount of time that passes between when the Bank extends an offer to purchase the bonds and when the City actually accepts the offer. The ordinance does authorize the sale of the bonds and accepts the purchase offer. Staff's recommends, based on the City's financial adviser, to approve the ordinance and accept the purchase offer. Dick King, Lehman Brother/Seattle, stated he is acting as the City's financial advisor in this transaction. This transaction was placed early on Tuesday, November 8, and based on the orders that Seafirst was able to develop during the first 4-5 hours, some adjustments were made to the structure in shortening the final maturity, which reduces the total interest the City will have to pay on these bonds. During the pre-Council Study Session the City Treasurer focused on the Proforma to insure that the golf course would generate sufficient revenue to pay the debt service. He has carefully reviewed Seafirst's offer as well as the Bond Ordinance and endorses the recommendation that the City accept the offer and Purchase Contract. Mr. Neville questioned if Council delayed further action on this issue for two weeks would the interest rate be less favorable? Mr. King directed Council to a graph in the documentation entitle "20-YEARGO Bond Buyer Index" and pointed out that during the past two years the Market has been up and down. However, for the majority of 1994 that rate has been climbing indicting higher interest rates. Without the benefit of hindsight, TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 8 of 9 we won't know whether the interest rate contained in Seafirst's offer at this time is better than what would be available at some point in the future. He recommends the City accept the offer and take the current interest rates. He emphasized the project works at these interest rates and the City. does have the ability to prepay the bonds early should future interest rates decrease. Mr. Neville noted Mr. King stated the City will have the option to prepay the bonds and questioned if the golf course will generate enough revenue to assure that the .City could pay off in an accelerated time? Mr. Hanna stated yes, there would actually be three different alternatives that the City might be able to pursue depending on the financial circumstances. The City has reserved the right to call and pay bonds maturing in the year 2003 and beyond, using cash from the operation of the golf course or to issue new bonds and pay the old bonds at that time. Another alternative that might be available and would be even prior to that date were interest rates to decline dramatically, would be an advance refunding of the bonds. Clearly, we are not starting out this discussion from the premise that is a likely result, but that is always a possibility. Jane TowerS, Acting as Underwriter from Seafirst Bank, expressed how proud they were to work with the City on this issue~ Their corporate Golf Tournament was held at Gold Mountain Golf Course, so they personally know that it is a very viable project. They were also proud to sell the City the Bonds through their branch network. Over 80% of the bonds that were sold (over 4 million dollars) were sold through their branches to their retail investors ($5000 as well as $10,000 bond orders). The market was very dynamic on November 8 and interest rates were changing minute-by-minute. The City is commended as well as their financial advisor in working with Seafirst in coming up with the structure which was very sellable. Because there is the expectation that interest rates will be going up, there is very little institutional money available to make large bond purchases. In refiguring and reconstructing the issue, they were not only able to sell the issue, but the City was able to achieve an overall lower interest cost because of the shortened maturity. Public comment - none. Mr. Law asked Mr. Hanna to explain the IRS rulings as far as municipalities borrowing money ahead of the time they need to use them. Mr. Hanna stated because the City is able to sell the bonds on a tax exempt basis, the IRS takes a dim view of municipalities going to market unreasonably ahead of their actual need for fund. There are requirements that within a reasonable time from when the bonds are sold a large percentage of the proceeds need to be invested in the actual construction project, not simply invested #1577 TAPE #1246 City Council Reg. Mtg. Minutes November 9, 1994 Page 9 of 9 and used to create arbitrage profits for the City. Mr. Fare asked if the Proforma indicated that in addition to repay the debt that the golf course would still continue to be a revenue generator for funds going back into other projects? Mr. Hanna stated yes, the Proforma includes an assumption continuing financial support for the City's neighborhood parks system. He does not see any unforeseen interruption in that stream of payments, particularly in the out years as the expanded course comes into its own financially that stream of payments should increase dramatically. M/S/C/U(Law/Montgomery) to pass Ordinance #4491, on an emergency reading, authorizing the sale of $5 million of LTGO Bonds and accepting the purchase offer of Seafirst Bank. With no further business meeting adjourned at 6:38 P.M. City of Bremerton~ KLM/SH-M/me cc: Normal Distribution File/Vault City Clerk