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HomeMy WebLinkAbout10/19/94TAPE #1240 ~ CITY COUNCIL MEETING MINUTES COUNCIL APPROVED N 0 V 2 1994 UNAPPROVED DRAFT OCTOBER 19, 1994 #0020 #0040 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, October 19, 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 Ron Anderson of Manette Community Church. CONSENT AGENDA A. Minutes of Meeting - September 28, 1994 #AB94-217 M/S/C(Colvin/Dawkins) to approve the Consent Agenda as presented. Vote on Motion: Motion carried. In Favor: Abstain: Neville, Farr, Law, Montgomery, Dawkins, Colvin, Winters, Huff-Menees Overson 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 October 19, 1994, the Council does approve for payment those vouchers included and further described as follows: 179287, and 179292 through 179452 in the total amount of $422,031.51; and Regular Payroll for the period ending 10-15-94, in the amount of $55.2,170.26. President Huff-Menees announced that there would be a Study Session immediately following the City Council Meeting in the City Council Conference Room. The topic will be "Solid Waste", and the public is invited to attend. COUNCIL MEMBER REPORTS Mr. Overson said it was good to be back after being away for several weeks on vacation, and was sorry to hear Bremerton lost a business. TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 2 of 20 Mr. Neville had no report this evening. Mr. Farr reported that a District 6 meeting was held last night. He thanked Pat Harris for his report on recreational activities in the West Bremerton area, Richard Hayes of Kitsap Transit who made a presentation on the proposed reduced fares for those with low- income, and Mayor Horton for her presentation on some other developments in the area. He commented that the attendance was low, and he thanked those who did come. Mr. Law also held a District 3 meeting last night, and thanked the City staff from the Building Department for their participation. He stated the attendance was also low, but it was a very informative meeting. Mr. Montgomery had no report. Mr. Dawkins went to the Senior Fair held Friday and Saturday at the Sheridan Park Recreations Center and reported that there were many fine hand-made and home-made items for sale. He stated that every one involved did a fine job. Mr. Colvin went to the Salvation Army after last week's Council Meeting and was pleased to report their plans for a Computer Lab at the new Youth Center. This will allow those who cannot afford computers to still have access to one. He also welcomed a few citizens from District 1 who were in attendance tonight. Mr. Winters commended our Bremerton Fire team for their efforts in controlling the recent fire in downtown Bremerton. He attended a meeting with downtown business owners that same morning and heard their concerns over such problems as the 3-hour parking, ticketing, and water/sewer rates. He encouraged anyone who had ideas or solutions to some of these problems to please get involved by coming to meetings, Council Study Sessions, etc. and understand the whole picture, and why certain decisions are made, such as what is being addressed to the City by the State and Federal government, and understand clearly why some increases are required. He appreciates hearing from the citizens on their concerns. Ms. Huff-Menees reminded residents of District 7 that there will be a Neighborhood meeting Thursday, October 20, at 6:30 P.M. at the Bremerton SchoolDistrict Office at 300 Montgomery Avenue. Randy Witt, City Engineer, will be there along with Richard Hayes of Kitsap Transit. She encouraged everyone to come. MAYOR'8 REPORT Mayor Lynn Hotton made a small correction to a report in the paper TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 3 of 20 that it was Sub-base Fire Department No. 3 that responded to the downtown fire, NOT the Jackson Park Fire Department. In response to Mr. Winters comments on the parking situation, a new parking system is on board now, and the transition is working very nicely. This system will be in place now through December, and then some further corrections will be made and problems will be addressed. She did attend the Salvation Army meeting about the new Youth Center and also Mr. Farr's Neighborhood meeting. She has also been working on the new Budget, and trying to involve the staff more. There is not enough money to go around to fund everything, so a big issue is working on priorities. There will be a series of budget meetings that are open to the public, and she encouraged anyone who could to try and be a part of the budget process. Mayor Hotton read the following Proclamation: (1) Proclaiming October 20, 1994, as INTERNATIONAL CREDIT UNION DAY. Mayor Hotton announced that the Youth Council held a dance, and would like to make a presentation to donate some of the money raised. She introduced Jason "J.R." Bachand, Senior at Bremerton High, and Youth Council President, who presented Dr. Dorothy Ghylin, College, Career, & Guidance Counselor from Bremerton High School, with a donation for the Career Center, which had lost most of its funding for the 1994-95 school year due to budget cuts. Dr. Dorothy Ghylin accepted the check and thanked J.R. She said they had received donations from several other community members and all were appreciated, but this donation really touched her heart because it came from the youth for the youth. She said the money would be used for updated materials. President Huff-Menees reminded everyone that commercial, and both partisan and non-partisan announcements are prohibited. PUBLIC RECOGNITION Nancy Buck extended an invitation to all citizens, Council members, Mayor Horton and City staff members to District #1 Neighborhood Coalition meeting on November 10, 7:00 - 9:00 P.M., at the Sheridan Park and Recreation Center. This meeting will provide an opportunity for citizens to meet newly elected officials and have them address citizen concerns. Dennis Diblev, representing the Juniper and Morrison Court residents, asked that Council consider dedicating a small basketball court on City property at the end of Morrison Court to Clif McKenzie. And, they would like the court to be named Clif McKenzie Court. Mr. McKenzie experienced a sudden fatal heart attack about two weeks ago while working on the post and backboard TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 4 of 20 of the basketball court. Mr. McKenzie put in the basketball court in the 1960's for the benefit of the youth on Juniper, however, children from as far away as Pine Road come to shoot baskets. Mr. Dibley cited other volunteer efforts performed by Mr. McKenzie over the many years he resided in Bremerton. Mr. Colvin added the citizens making this request came to him with their proposal. Because this is a worthwhile proposal, he plans to do something in honor of the memory of Clif McKenzie at the District #1 Neighborhood meeting on November 10. Gordv Byrd relayed a request from another person asking if the City could do something to slow traffic as it comes down Riddell Road from the east towards Wheaton Way. He announced "Run-Away Alliance" will meet on November 16, 7:00 P.M. at the Bremerton Recreation Center. He is continuing to collect donations for his Byrds Nest project and as of this date he has collected $10,129.26. He was pleased to report his Byrds Nest project will be a "Charity of the Month" for Young Country Radio Program (96.5). J. R. Bachand announced the next Youth Council meeting will be held October 24, 5:00 P.M., in the Mayor's Office (they meet every other Monday). Shannon Cook gave a rundown of the activities involved for the Festival Of Trees to be held November 23-26. Peggy Atkins stated she was not pleased that Tim Richard, Engineer in the Public Works and Utility Department, had not yet responded to her October 6th letter, nor had he forwarded a list of members of the Citizen Advisory Committee relating to the Wastewater Treatment Plant Odor Control project. Al 0lson, owner of Swingtime Music, 305 Pacific, stated Mr. Winters alluded to not having time to tell everyone about what is going on in the streets, especially since the recent fire on 1st Street. He wants Council to be aware that since he leased his store facilities he went from being one of fifteen business in a row down to five, which is not counting two business that moved in and out during that time period. Since the most recent fire in the downtown area, the mood on the street has been quite weird. He is aware that a number of businesses are having people sleep/stand watch in their place of business 24-hours a day, and there is a "lottery" pool running on which building is the next candidate to go (be destroyed). He has heard plans about studies being done on renovation of the downtown core, but right now he and other business owners are being hit financially and they are looking for some .kind of commitment or gesture that something is going to happen now. He is thinking of moving out of the downtown area as TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 5 of 20 soon as his lease is up. They would appreciate any kind of help addressing this issue whether it involves rent regulation, abatement, tax incentives, etc. Teresa Cordon announced ARC is sponsoring a special event - Halloween Dance October 28, (18 years & older) at the ARC Bingo Hall on Perry Avenue. Gordy Byrd announced ARC on Perry Avenue and Value Village are sponsoring a Haunted House. 7A - AMENDMENT TO THE LABOR AGREEMENT BY AND BETWEEN THE CITY OF BREMERTONANDTEAM8TERS' LOCAL 589ADDING THREENEW CLASSIFICATIONS TITLED: (1) ENVIRONMENTAL TECHNICIAN; (2) OPERATIONS FOREMAN; AND (3) DISTRIBUTION FOREMAN, #AB94-218 Three new classifications titled (1) Environmental Technician; (2) Operations Foreman; and (3) Distribution Foreman have been added to the classification plan through the Human Resources Department. The City and Union have met and agreed upon the wage grade · placement for these positions as set forth in the Amendment. The wage grades are consistent with previously approved budgeted amounts. Jim Meith, Human Resources Manager, noted this action is more a procedure type action based on earlier Council action in the 1994 budget. He stressed that when such action involves positions within Union representation, this has to be negotiated with the Union in regard to the wage grades. The Union did agree to the proposed wage grades and the proposal being presented is to amend the contract that currently exists between the Teamsters Local 589 and the City of Bremerton. Public comment - none. Mr. Dawkins asked if Council will be asked to consider other classification changes within this same area? Mr. Meith stated he felt there would not be any additional classification changes for the remainder of the year. Mr. Winters questioned what was meant by "Environmental Technician"? Mr. Meith explained the general function of an Environmental Technician is the technical field and office work in environmental monitoring source and finished drinking water, wastewater, stormwater, soils, biosolids, and fresh and marine environment. This position conducts monitoring, investigations, analysis and data management in support of the Water Resources Division. TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 6 of 20 #1342 #1505 M/S/C/U(Dawkins/Colvin) to amend the Labor Agreement between the City of Bremerton and Teamsters Local 589 to add three new classifications to the wage grades contained in Appendix A as set forth in the Amendment to the Agreement. 7B - PENDERGAST REGIONAL 8PORTS COMPLEX PHASE I -- PUGET SOUND POWER & LIGHT EASEMENT, #AB94-219 Puget Sound Power & Light requires an easement to enter the Pendergast Regional Sports Complex site to provide primary electrical power. The primary power installation provided by Puget Sound Power & Light shall be installed underground to provide the part site with 480/277 Volt, 3 phase primary electrical. Dan Miller, Project Manager, stated he is looking for easement approval to begin installation of the primary tower to the pendergast project. All conduits are underground and all duct systems and vaults are in place. Public comment - none. Mr. Winters asked Mr. Miller to explain the advantage of future expansion the City will have following the granting of the easement. Mr. Miller explained the construction project included a total underground duct system for the primary power as well as all the vaults associated with future extensions to the park. The cost incurred at this time is a one-time-cost and the construction budget will support that cost. When Phase II comes into play, only additional conduit for future lighting of the fields as well as the lighting of soccer fields located on the lower areas will be required. He felt it was wise at this point to invest in this system because Puget Power prices continue to rise as does the cost of labor. Mr. Overson asked if the cost of the easement is included in the construction budget? Mr. Miller stated yes. Mr. Dawkins questioned for clarification the location of the easement? Mr. Miller explained the easement is on Linden Street and Linden is being used as the temporary construction access to the park at this time. Mr. Dawkins questioned if a new entrance to the park will be built? Mr. Miller stated yes. M/S/C/U(Colvin/Winters) to approve and authorize the Mayor to execute the same, subject to City Administrative Policies and Procedures. 7C - PUBLIC WORKS COMPLEX PROJECT (CONTRACT #3432) THOMAS SNYDER CONSTRUCTION COMPANY -- CHANGE ORDER NOS. 3 AND 4, #AB94-220 TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 7 of 20 The base bid contract for the Public Works Complex in the amount of $1,729,677 has incurred an additive amount of $26,741.86 as a result of two previous change orders. This Change Order No. 3 is for the additive cost to place asphalt pavement at the Public Works Complex site in the amount of $87,644.48. The actual quantities of sub-base placement of asphalt-treated base (ATB), Class B asphalt and minimal subgrade preparation for the placement of ATB and Class B asphalt were measured in the field at the time of placement and used as the basis for payment. The project contingency fund supports this expenditure of $87,644.48 as discussed at the City Council Study Session on March 7, 1994. In addition, Change Order No. 4, included within, is a credit in the amount of $6,000.00 for deleted electrical work for the grounding of lights and receptacles in the Repair Building and grounding of lights in the Maintenance Building. Dan Miller, Project Manager, stated he is seeking approval of Change Orders #3 and #4 in order to close out the completed project as of October 31, 1994. Mr. Colvin questioned if the change orders reflect something that was unforeseen when the original contract was approved? Mr. Miller explained this was something that was an alternate that was left out of the contract - asphalting of the site. The project was managed in such a manner that asphalting of the site could be accomplished in the spring time with the contingency and safeguard of the contingency. Public comment - none. Mr. Overson asked if Council will see the actual closure of this project? Mr. Miller explained his actual closure is supporting documentation on this Agenda Bill. Mr. Oversonquestioned if this project was the first for Mr. Miller as the City's Project Manager? Mr. Miller stated yes, and Council has been shown during Study Sessions that a $2,373,000 project was built with only a $5,596.00 overrun. The overrun actually was for in-house services provided by the Street Department moving a great deal of dirt so that they could have lay down areas for their tools, pipes, etc., The dirt was hauled off the Public Works site and deposited on the Pendergast Regional Park site where it was used for fill on the ball fields. Mr. Overson complimented Mr. Miller on a job well done on this project. Mr. Winters voiced his appreciation of the good job Mr. Miller has done to keep Council informed on the progress of this project as well as keeping it within project time TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 8 of 20 #1730 #1900 lines. M/S/C/U(Farr/Law) to authorize and direct the Mayor to approve Change Orders # 3 and #4, and make payment to Thomas M. Snyder Construction Company in the amount of $81,644.48, subject to City Administrative Policies and Procedures. 8A - ORDINANCE NO. 4487 (SECOND READING) LEVYING PROPERTY TAXES FOR COLLECTION IN 1995, #AB94-216 Elizabeth Buell questioned the amount of the increased taxes? President Huff-Menees pointed out at this time the City only could approximate the cost and that was why the Treasurer stated a range of 10-15 cents per thousand dollars. Rich Hanna, City Treasurer, explained as stated by President Huff-Menees this is based on the preliminary assessed valuation prepared by the Kitsap County Assessor. Until those rolls are finalized and the other taxing districts have passed similar actions, no one will accurately answer that question. The City is looking at a range of 10-15 cents change on the City's Operations Levy, however, the City is one of a number of taxing districts. The State of Washington, Kitsap County, City of Bremerton, Bremerton School District, Port Of Bremerton and P.U. all levy taxes on properties within the City of Bremerton. Mr. Overson stated for the purposes of the General Levy, this action would essentially establish that rate. Mr. Hanna stated it does, with the exception that the City does not know the final amount of new construction that will be added to the preliminary assessment number that the proposed ordinance is predicated on. M/S/C/U(Neville/Montgomery) to pass Ordinance No. 4487 on second reading levying Municipal Taxes against all the taxable property within the City Limits of Bremerton for the year 1995 and approving the assessment roll made by the Assessor of Kitsap County, therefore to be collected in the year 1995. 9A - ORDINANCE (FIRST READING) AUTHORIZING THE ISSUE OF UP TO $500,000 LINE OF CREDIT FOR THE ABATEMENT OF UNFIT BUILDINGS AND ACCEPTING THE OFFER OF SEATTLE FIRST NATIONAL BANK. #AB94-221 The proposed ordinance will provide funding to the City's Building Department for use in enforcement of the dangerous building code. A line of credit with a maximum of $500,000 will be provided by Seattle First National Bank. The initial term of the line of credit is four years with a provision for annual extensions at the mutual consent of the City and the Bank. The interest rate is 2.5% below the bank's prime rate. Please see the attached page for additional description of the proposed use of funds. TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 9 of 20 Mayor Lynn Hotton stressed the importance of this proposal as an Administrative need. Since she served on the City Council, the City carried out a very small number of abatements. So far this year, more have been done than those done over the past 2-3 years. Because the City has very little funds to work with, it has been difficult to get some of the properties torn down that should have been demolished decades ago. What she is proposing is to front ending the abatement process so that when either the property sells or the property owner pays off the lien, the City will get refunded for the abatement She is being very careful to make sure that there is equity in the property being considered for abatement and she will be prioritizing abatements, with the first being safety. Past history has shown that property owners do not take the initiative on their own. The response from residents in neighborhoods where abatements have taken place has been very positive. She sees this action as a key element in. getting Bremerton back on track to clean up neighborhoods and move forward where we all feel Bremerton should go. She urged Council's support of this issue. Rich Hanna, City Treasurer, as stated in the Agenda Bill, the initial term of the line of credit is four years and the Ordinance does make provision for annual extensions. The reason for structuring the finance in this fashion was to provide a revolving line of credit and with that structure they are attempting to match the liability the City would have for the monies going to the bank to the City's assets, which would be either tax liens or personal judgements assessed against the properties. As Mayor Horton mentioned, historically the City has been hard pressed to find enough money to dedicate to carrying out abatement actions and has been a major hinderance to the Building Department's ability to pursue abatements and actively enforce current Codes. It is the intention of both Finance and the Community Development Department that the City will be very judicious in use of these funds. The City wants to make sure that there is a high degree of probability of recovery of the funds invested in the abatement action either through a tax lien or personal judgement. Lacking that, while it might not be in the initial period, ultimately the City will require tax dollars to ultimately pay for those kinds of abatements. According to the numbers provided by the Building Department, it appears only about 20% of the needed abatement action would fall in the category where the City would have to absorb the cost. Gordy Byrd asked the difference between a place that is not kept up but could be rehabed, and an abatement property? Don Pratt, Director Of Community Development, stated the difference is if the value of a structure is less than the value of repairs then TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 10 of 20 demolition would be the response we would make to take away the danger. There may be instances where the City makes repairs to a structure and then placing the cost of repairs as a lien against the property. The affect of this legislation says whether a structure is demolished or repaired, the City will use funding that is available through borrowing, and a lien will be placed against the property in hopes to cover that cost. Whether the City repairs or demolishes a structure, all are considered abatements under City code. A10lsenquestioned the results of the building at 207-215 Pacific, which was located next to the buildings that were demolished as a result of the June fire? Mr. Overson asked if Mr. Olsen's question was pertinent to the issue under discussion? He suggested that Mr. Pratt respond directly to Mr. Olsen's question. Mr. Law stated when this item was presented to the Fiscal and Budget Committee Mr. Hanna had indicated Council would be provided the procedure for check issuance. Mr. Hanna acknowledged Mr. Law was correct, however, he was not prepared to provide a finished document at this time. Mr. Law stated he was reluctant to approve something without having the procedures identified for expending the funds. He felt strongly that the requirement for two signatures per check be agreed upon. Mr. Overson stated he agreed with Mr. Law and encourages this kind of discussion. He felt the requested action was premature. He understands that abatements in Bremerton have been a challenge, however, he would like the following questions answered: (1) what is the process; (2) how does it get into the budget; (3) how does it get budgeted; (4) who will pay for it; (5) how is it being paid back; (6) time period for pay back, etc. Mayor Hotton stated there is a list of criteria that the Administration will follow, and are prioritizing all of the properties based on that listing of criteria. At the top of that list would be whether the land will support the abatement action. Mr. Overson asked Mayor Horton if that checklist or control was included in the ordinance? Mayor Hotton explained that would be the procedure she would be following. She emphasized the procedures is that there is a criteria and the Building Official is prioritizing all of the properties on his list based on the criteria. Once a property is identified as a dangerous building, it is then determined if the land has the dollar value to refund the City when the property is either sold or the lien is up and property is disposed of. Mr. Overson questioned how the criteria was established? Mayor Hotton stated she is responsible for a multi-million dollar budget and she hoped Council would give the administration credibility in using good judgement in what is to be abated and demolished. Conversely, she is looking to use the same staff to do street renovation during the good weather and TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 11 of 20 abatements during the inclement weather. Mr. Overson emphasized the way this is handled in all weather operations is done through the budget. He sees this proposal as a "blank check" for $500,000 that the staff can use as they see fit. It concerned him that there were no policies or procedures in force that give him a level of comfort that the City won't get into trouble with this program. The current abatement process does not involve the City Council. Mayor Horton explained the City can currently do an abatement on a property, place a lien against the property, and the issue comes to Council after a building has been torn-down. Mr. Overson pointed out to the Mayor that there is a line item on the Budget that controls the amount that can be spent on abatements and that is how the City Council is presently handling that process. Mr. Hanna stated Mr. Overson's comments are on point, but he wished to reassure Council that the proceeds of this borrowing, if authorized, does not provide staff with a "blank check". This would make funds available to carry out abatement actions, but funds cannot be expended without budgetary authority approved by Council. That authority is not being requested at this time. Mr. Overson questioned, for clarification, if all abatements will be brought before Council prior to their being acted upon? Mr. Hanna stated he was not sure each individual abatement action would come before Council, but at a minimum, they would be asking for budgetary authority in the context of the Mayor's Preliminary 1995 Budget. It is not anticipated that the borrowed funds would be used until 1995, due to the potential tax treatment of the borrowing. The City Attorney has indicated these abatement actions are in fact "public works" and under the City's purchasing rules and State statute "...any abatement action that exceeds $10,000 would be a contract that would come before Council". Also, anything exceeding $35,000 would, by State statute, require a competitive bidding process. This does not alleviate the fact that Mr. Law was promised a procedural document and he apologized for not having that available at this time. Mr. Winters questioned if he understood correctly that there would be a maximum of $100,000 per year used for abatement. Mr. Manna stated there may be specific circumstances in the Mayor's preliminary budget, but it is their intent to ask for $100,000 expenditure authority in 1995. Mr. Winters stated his concern was over Mr. Overson's scenario of $200,000 for just one project. Hanna assured Council that a number of things would have to happen on an abatement action of that magnitude, such as adopting an amendment to the Budget requiring Council approval, and a bid call would be required, which would provide another layer of Council approval. Mr. Overson pointed out Mr. Hanna admitted up front that it is TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 12 of 20 anticipated that the City will not be able to collect refundable costs from 20% of the abatements. He asked if the procedures will try and see to it that the City doesn't expend these funds on those 20%? Mr. Hanna stated. Mr. Overson is correct, using these borrowed funds is not the solution to all of the funding problems of the Dangerous Building Code enforcement. He reminded Council not all abatements are demolition projects. As stated in the documentation provided, the administration will be looking at the value of the land underlying the structures or the net worth of the owner. Mr. Colvinquestioned what would happen if an abatement building is already a debt against the land it sits on? Mr. Manna stated it would depend on the nature of the debt. If the City filed a tax lien against the property, that form of lien is superior or equal to all other encumbrances other than the IRS. Ian Slevers, City Attorney, stated that was the basis why the Administration felt sure that this will take care of the majority of properties given the average cost of demolition and .the cost of a fully serviced lots in the City, and given the fact that the City would jump ahead of all the normal liens and mortgages. Mr. Farr stated he shared Councilman Law's concern about proceeding without the procedure for the check issuance being established. In general, he supports this proposal wholeheartedly and would not like to see it jeopardized because of a procedural glitch; and in the polling he has done and results of other polls, this is one of the greatest concerns that the citizens have. He is not overly concerned that one in five abatement procedures result in a net loss to the City and have to be recovered in some other way. He emphasized the benefit of having derelict buildings demolished and how that affected surrounding properties in a positive manner. He believes that getting rid of abatement type properties will improve the image.and attitude about Bremerton. Up to this point, most of the action taken by the City has been "lip service" based on the lack of funding, and violators are fully aware of that funding shortage. He referenced a program on CNBC on how much derelict buildings in an adjacent neighborhood devalue a persons property when they go to market it. Mr. Montgomery questioned if it might be expected that more people would come forward and handle their own demolition actions once the City sets the funding availability in motion? Mr. Hanna stated it is hoped that is the case. Mr. Montgomer~ stated in his opinion this is an excellent program and we need more like it. Mr. Law pointed out this action takes two readings and he would support the proposal on the condition that Mr. Hanna would meet TAPE #1240 City Council Reg. Mtg. Minutes October 19, 1994 Page 13 of 20 TAPE #1241 with Fiscal and Budget Committee on October 25, and at that time provide the procedures that will be involved with this process and answer questions raised during this discussion. Mr. Hanna offered his personal assurance he could support Mr. Law's request. President Huff-Menees stated she believes the City has done a great deal more than pay "lip service" to the abatement program. Even with limited funding, the aggressiveness with which the program has been addressed has been noticed and she has seen improvements in several areas of the City. She supports this proposal whole- heartedly and commends the work that has been done considering the limited funding and restrictions placed on the City. Mr. Overson questioned the reason for the $500,000 borrowing capacity since only $100,000 per year will be budgeted? Mr. Hanna explained historically funding to carry out abatement actions have been the limiting factor on the amount of this kind of work undertaken by the City. The Administration believes with this line of credit available, and the way they intend to use it, money is no longer the limiting factor that now may be available for staff time to carry out the abatement actions. Mr. Overson expressed his concern that once this programs gets rolling, that $500,000 will be spent and yes, we may be getting that money in over a period of time, but it may take 10 years to get it because of the legal process. So, in the interim, the taxpayers' funds end up paying this $500,000. Mr. Hanna stated Mr. Overson is correct in that it will take a period of time to collect the money, however, the primary mechanism for collecting the funds is the filing of a tax lien. Property taxes and the associated liens become delinquent and subject to foreclosure after a period of three years, so there can be a considerable lag between the time the funds are expended and when the City is ultimately reimbursed, that was the reason for the initial four year term of the line of credit. What was trying to be achieved, is matching of the City's liabilities to the bank and our assets, which are the encumbrances on those properties. It is believed with the tax liens being subject to foreclosure after three years, the City does have a reasonable balance where the money does not come due to the bank in year 4 and the property subject to foreclosure in some period of time after that. Mr. Overson pointed out that was addressed for the first year, but not for the second year. Now, you are beyond the three year program. He agrees with the philosophy of the proposal and it sounds good, however, he is somewhat nervous about the affect it might have. Mr. Hanna stated only time will tell, monies spent in year one if not paid should be subject to foreclosure in year 3 and hopefully the County will have carried out the tasks necessary to take the properties through foreclosure TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 14 of 20 #0150 so that before year 4 the City will have funds in hand. Mr.. Overson emphasized those funds that were expended in the second year won't be due until the fifth year, however, the City has to pay at the fourth year. Mr. Hanna stated that is the reason there is an automatic one-year renewal on the line of credit, which is subject to the mutual consent of the bank and the City. Should either party choose not to renew that, then his recommendation would be that the program stops. Mr. Overson asked if there was now concern that if something occurs the City may not use the borrowed funding in 1996 because we would not review the line of credit. Mr. Hanna stated yes, it is renewable at the mutual consent of the bank and the City. Mr. Law described a worse case situation...if the prime was 9.5% the City could be paying 7% and if the full $500,000 was borrowed, the cost to the City out of the City budget would be $35,000. He questioned how will the interest rate be collected...monthly, quarterly or yearly? Mr. Hanna stated the ordinance calls for an annual payment. The interest can be paid by drawing on the line of credit. He pointed out the tax liens that have been filed on the abated properties are now delinquent and are earning interest at the rate of 12%. Mr. Law asked if that was a fixed rate or tied to the prime rate? Mr. Hanna stated the 12% interest is fixed by State statute and "personal judgement" interest is also fixed at 12%. M/S/C/U(Colvin/Montgomery) to approve ordinance on first reading relating to contracting indebtedness; authorizing the issuance of a Limited Tax General Obligation Line of Credit Note, 1994, in the aggregate principal amount of not to exceed $500,000 at any one time outstanding to provide funds necessary to pay costs relating to the enforcement of Ordinance No. 4418 and Chapter 35.80 RCW concerning the abatement of unfit dwellings, buildings, structures, and premises, and for other lawful City purposes pending the issuance of general obligation bonds or other sources of repayment; fixing the date, interest rate, form, maturity, terms, covenants and uses of the proceeds of the note; creating a note redemption fund; and approving the sale and providing for the delivery of that note to Seattle-First National Bank, Seattle, Washington. 9B - ORDINANCE (FIRST READING) AMENDING THE 1994 BUDGET TO INCLUDE BUDGET ADJUSTMENTS 94-16 THROUGH 94-30, #AB94-222 Several actions taken by the City since passage of the 1994 Budget require certain corrections to the Budget in order for it to continue to accurately reflect the financial operation plan of the City. Rich Hanna, City Attorney, noted this is the second Budget amending TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 15 of 20 #0272 ordinance adjusting the 1994 budget and does include Budget Adjustments 16 through 30. Most of the significant Budget Adjustments have come before Council as separate issues, with the exception of Adjustment #18, relating to two Department Of Natural Resources Urban Forestry Grants that were obtained by the City's Parks Department. Those grants, while they are fairly significant, have not previously been seen by Council and for that reason a fair amount of supporting documentation relating to the grant agreements were included in the Agenda Packet. Public comment - none. Mr. Overson questioned if he understood correctly that the DNR grants would be used to hire someone and that individual will set up a Forestry Master Plan for City owned property? He noted the City already has a Forester and is he taking on this new responsibility with the City paying him overtime. Mr. Hanna stated he did not believe that was the intent and the responsibility of the new hire would be to the decorative type trees on City property, not commercial forestry. Mr. Overson asked if the City was having problems with existing plants? Mr. Hanna stated he did not have the information to answer Mr. Overson's question. M/S/C/U(Overson/Law) to approve ordinance on first reading amending Ordinance No. 4464 relating to the budget of the City of Bremerton for Fiscal Year 1994. 10A - RESOLUTION NO. 2483, FINAL PLAT APPROVAL - COURT CIERRA SUBDIVISION; APPLICANT: MARRIC, INC., #AB94-223 The Preliminary Plat for Court Cierra (formerly Cierra Court), a twenty one lot planned unit development and subdivision allowing the construction of zero-lot-line single family residences, was approved by the City Council on January 26, 1994 subject to conditions (see Exhibit III with statements of compliance). Improvements necessary for road access, utilities, and fire protection have been constructed in compliance with the conditions of the preliminary plat and PUD approval. Now, a plat map prepared by a licensed surveyor has been submitted for Council approval. If approved, the plat will be recorded with the County Auditor. RCW 58.17 Boundaries and Plats, requires Final Plat approval by the City Council. Jack Allingham, Current Planning, explained the proposed Resolution is to approval the final plat for Court Cierra, formerly known as Cierra Court. The subdivision was a combination Subdivision/Planned Unit Development to subdivide just a little over 2 1/2 acres of land into 20 lots. The.site is located along TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 16 of 20 the north side of Sylvan Way about 100 feet to the east of Cedar Grove and approximately 600 feet to the west of Rickey Road. The preliminary plan that was submitted to the City Council for approval was to subdivide the 2.4 acres into 20 lots and to construct zero lot line attached single family residences on each lot. During the review of the proposal there were four public hearings held from August 1993 to January 1994, and one of the issues at that time was that the plat had to provide additional open space so another piece of land was added to the site. The final PUD was submitted for the Zoning Code and final PUD's are reviewed and approved by the Director of Community Development. The final PUD has a provision that allows the increase in residential dwelling units by 5% (in this instance that would be one dwellingunit), and one additional dwelling unit has been added to the site. The open space requirement did not change because of the added unit and remained at 15% (18,012 sq. ft.), and was being provided at the end of the cul-de-sac area covering an area 18,050 sq. ft.. The final plat approval will enable the plat to be recorded at the Kitsap County Auditor and the property transferred to future owners. This action will not be the final action on the property...building permits are currently being reviewed by the City and building permits will be issued .for the construction of the dwellings. As of this date, the roadway has been constructed, utilities are in place and a plat prepared by a licensed surveyor has been submitted to the City and reviewed by the Fire Department, Utilities Department, Engineering Department and Planning Division for compliance with conditions of the preliminary approvals and received all clearances. The Planning staff recommendation is to approve the final plat. Public comment - none. Mr. Overson questioned for clarification if the any buildings are built? Mr. Allingham stated no, but the City has received 21 .building permit applications. Mr. Overson stated then through negotiations, the City and the builder has agreed on a use of the land that is legal, acceptable and hopefully will provide a quality living place for the buyer. Mr. Allinghamstated that was correct, this action will say the builder has installed the street and utilities and can legally transfer the parcels. Mr. Law questioned for clarification a particular area of land on the site that he understood previously would be kept as open space? Mr. Allingham explained in order to get additional open space the developer acquired some adjoining land. The amount of open space required on the whole site is 18,012 sq. ft., the amount provided on the proposed plat is 18,050 sq. ft., with a 38 ft. surplus. Mr. Law pointed out that when the extra open space land was acquired it TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 17 of 20 #0613 allowed placement of an additional living unit. Mr. Allingham stated that was correct, the developer designed a house and the final PUD allows the increase by 5% the number of dwelling unit. Mr. Colvin asked if the Planning Commission had reviewed the proposal with the increased dwelling units? Mr. Allingham stated yes, the Planning Commission held two public hearings on the preliminary plat. Mr. Colvin asked if there were any objections from surrounding property owners? Mr. Allingham explained there was public testimony taken at the four public hearings that were held. Mr. Farr restated the steps completed by the developer to gain approval of the final plat, with their being in full agreement with all conditions. Mr. Alllnghamstated the developer not only agreed with the conditions stipulated, but have actually invested time and money developing the street and utilities on the site. M/S/C/U(Farr/Winters) to approve Resolution No. 2483, accepting the Final Plat of the Court Cierra Subdivision. 11A - PUBLIC HEARING TO CONSIDER WRITTEN OBJECTIONS TO 4TH STREET LID #326 ASSESSMENT ROLLAND ORDiNANCE CONFIRMING FINAL ASSESSMENT ROLL, #AB94-224 On September 28, 1994, the City Council passed Resolution No. 2481 setting October 19, 1994 as the hearing date for the Final Assessment on Local Improvement District No. 326. The LID was formed by Council adoption of Ordinance No. 4419. The improvements generally include the reconstruction of Fourth Street between Washington Avenue and Pacific Avenue, providing a one lane, one way pedestrian friendly street with various amenities. The value of the Final Assessment Roll is $389,000. The action before the Council is a Public Hearing, during which time the Council will sit as a board of equalization for the purpose of considering the Roll. During the hearing, the Council will consider the objections made and will revise, raise, lower, change, or modify the Roll or any part thereof, or set aside the Roll and order the assessment be made de novo. Following the hearing, the Council shall confirm the Roll by ordinance. All persons who desire to object to the Roll must make their objections in writing and file them with the City Clerk at or prior to the date fixed for the hearing. President Huff-Menees asked the "Appearance Of Fairness/Conflict Of TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 18 of 20 Interest" question with all members of the Council being seated. Randy Witt, City Engineer, pointed out the final value of the assessment roll $389,000 remains the same as the value of the Engineer's estimate presented at the time of assessment district formation. The City has four properties on this street with a total assessment of $137,732.91. The district was formed in June of 1993, and on September 28, 1994, City Council set this date for hearing. On the final assessment ,roll, property owners on the district boundaries were notified by mail, and public notices placed in the newspaper. Between the formation time in June of 1993 and the assessmeou hearing, the assessment district was constructed. It is essentially complete. The construction contracts are being finaled. There is some remaining work, which funds are available in the assessment district, which includes installation of the drinking fountain, clay pots, three benches, the donation plaques, and the replanting of the Christmas tree. Completion of this work will not affect the proposed assessment. Interim funding came from a bond anticipation note and interfund loan within the City. After acceptance of the final assessment roll, cash payments and L.I.D. bond proceeds will be used to retire the notes. The rate and term for the assessment district needs to be established. After discussions with property owners, the staff recommends a 13 year term with a 7.4% interest rate. With this review, I would like the Council to consider any objections to the final assessment roll. Kathy McOluskey, City Clerk, stated there were no protests, but did have a letter regarding the length of the bond issue, and read into record a letter from Mr. Lou Weir, downtown business owner, who was also present: "Directed to the City Council, regarding Assessment Roll for L.I.D. #326: In reviewing the term options for the L.I.D. bonds that the City is considering, I am surprised and concerned that a 20 year bond is not being considered. Property owners within the L.I.d. with more than one lot will be paying a considerable amount, whether it be a 5-year bond or a 15- year bond. In my particular case, my total assessment is almost $67,000. A 5- year bond would result in annual payments of almost $25,000, and a 15-year bond would still result in approximately $9,000 payments over and above the annual property tax bill. This will be a finial burden, especially on property owners with vacant buildings. My request is to put this on a 20-year bond to ease this burden. TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 19 of 20 #0936 At the same time, owners who wish to pay their L.I.D. off sooner, may still do so. Thank you for your consideration, Sincerely, Lou Weir" Rich Hanna, City Treasurer, stated that he would be happy to review this with bond Council and with the potential underwriters, and could not imagine there would be a problem with 20-year financing. It is a little bit outside the norm for special assessment districts, but Mr. Weir's request seems reasonable. Mr. Neville asked Mr. Hanna if a poll was taken from the other property owners as to the length of this note? Mr. Hanna stated yes, that a direct mailing had been done to each of the property owners, and only received response from four other property owners, in addition to Mr. Weir. One indicated they intended to pay cash and didn't care what the terms were, and the other three requested terms, in their words, "the longer the better". He believes Mr. Weir's comments are representative of all the property owners affected. Mr. Colvin asked if comments could be hear from Mr. Weir since he was in attendance tonight. President Huff-Menees explained that his comments have been heard per the letter, and any other comments from the public would have to be limited to whether the Ordinance properly adopts the assessment roll. Mr. Overson asked Mr. Hanna, if this were approved tonight, is it possible that Council could resolve the concerns over the length of the term, between now and second reading? Mr. Hanna stated yes. It would just require placing a few calls, just to assure ourselves that a 20-year assessment bond is reasonable. Mr. Overson asked if Council would then see that paperwork later on? Mr. Hanna stated yes. Mr. Colvin asked if the comments' heard from Mr. Weir affect the decision being made by Council tonight? Mr. Hanna yes, to the extent that the document before Council has blanks for the term and the interest rate to be included on the assessment roll, what Council could do is defer filling in those blanks until second reading. Ian Sievers stated that it was also suggested delaying second reading one additional week to give Mr. Hanna more time to communicate with property owners and find out what interest rate would be tied to that longer 20-year term, so that they may have a chance to comment. He also did not believe that a one-week delay would cause any problems with the Engineering Department. M/S/C/U(Law/Colvin) to approve ordinance on first reading adopting and confirming the assessment roll for Local Improvement District No. 326 providing for the improvement to 4th Street from Washington Avenue to Pacific Avenue as described in Ordinance No. 4419 providing for the levying and assessing for the costs and expense thereof against the parcels and lots of land within the boundaries of said improvement district; providing for the collection thereof; TAPE #1241 City Council Reg. Mtg. Minutes October 19, 1994 20 of 20 creating and establishing a special fund therefore. Second reading will be two weeks from tonight, and the length of the bond issue will be established at that Second reading. With no further business meeting adjourned at 8:00 P.M. KATHLEEN L. McCLUSKEY, 2ity Clerk SH , ident City of Bremerton KLM/SH-M/me cc: Normal Distribution File/Vault