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HomeMy WebLinkAbout09/07/94TAPE #1332 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES SEPTEMBER 7, 1994 #0024 #0047 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, September 7, 1994, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Morrie Dawkins, Bob Winters, John Law, David Farr, A1 Colvin, Lon Overson and Richard Neville. Also present were City Attorney Ian Sievers and Deputy City Clerk Gil Johnson. The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Reverend James Berentson of Our Savior's Lutheran Church. CONSENT AGENDA A. Minutes of Meeting - August 10, 1994 #AB94-187 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 RCW 42.24.090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Neville) on September 7, 1994, the Council does approve for payment those vouchers included and further described as follows: 178257 through 178354 in the total amount of $190,587.01; and Regular Payroll for the period ending 8-31-94 in the amount of $734,983.21 President Huff-Menees made the following announcements: (1) September 12, 6:00 -9:00 P.M. City Council Study Session; (2) September 13, 5:30 - 7:30 P.M. Council will conduct interviews of the four applicants for City Council District #8 position. COUNCIL MEMBER REPORTS Mr. Overson expressed his enjoyment of the Blackberry Festival this past weekend. Mr. Neville made the following announcements: (1) Next' Neighborhood Information Network meeting for the West Narrows District is Tuesday, September 13, 7:00 P.M., at the Neighborhood Christian Center. The featured speaker at that TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 2 of 20 meeting will be Henry Mincey of Safe Streets. (2) Mr. Neville, Pat Harris, Director Of Parks and Recreating and Larry Eyer, Executive Director KCAP and members of the community will meet on Monday, September 12, 5:30 P.M., in the Warren Avenue PeeWee Club House, to discuss a land swapping issues with the Warren Avenue Playfield and KCAP. He urged residents in the areas of Broadway Street, 9th Street, llth Street, and 12th Street to attend this meeting and give their input. Mr. Farr reported today he attended his first Kitsap Regional Planning Council meeting as a member of the Kitsap Executive Council. He is looking forward to participating on that board as one of three elected officials from Bremerton. As board members, they deal with issues relating to the Health District, Kitsap Transit and CENCOM services. Mr. Law announced District #3's Neighborhood meeting will be held September 20, 7:00 P.M., .at the Senior Center on Nipsic Avenue. The program that evening will include election results direct from the Kitsap County Court House. Subjects to be discussed at that meeting will cover everything from suggestions on improvements involving the Parks Department, safety concerns and how to report them, and input from district residents and those from outside the district. Mr. Dawkins reported today the guest speaker at the Bremerton Central Lions Club meeting was Don Pratt, Director of Community Development. Mr. Pratt spoke forcefully and high profile on growth management and how that has put the County and City in a position of not getting together too often. He saw a large cloud of smoke over the area of North Lafayette and learned the cause to be a brush fire that was started by children playing with firecrackers and roman candles. Fortunately, neighbors in the area of the fire were able to put out the fire by the time the Fire Department arrived. Mr. Colvin complimented Mayor Horton for supporting the efforts of the Blackberry Festival. He has received a lot of phone calls from concerned citizens and he hoped people would reserve their questions for the politicians scheduled to speak at the District #1 Neighborhood meeting on September 15. The major concerns conveyed to him are: taxes that are driving business out of the State, taxes that drive senior citizens on fixed incomes out of their homes; parents being intimidated by their children, who threaten to press charges against them for excessive discipline whether or not it is excessive; excessive emphasis on diversion creating division and hatred and not enough emphasis on our common denominator that we are all Americans under one Nation; the imbalance of nine Council members representing 35,000 people and only three County TAPE #1332 City Council Reg. Mtg. Minu%es September 7, 1994 Page 3 of 20 Commissioners representing the greater population of the County; people would prefer a more centralized meeting of the Kitsap County Commissioners and at an hour more convenient to the general public; bicycle safety - sharing the street with vehicles and bicycles. Mr. Winters reported he also enjoyed the Blackberry Festival this past weekend. He was pleased that Quincy Jones made a public appearance at the Festival and had the opportunity to meet local residents. A citizen suggested that when someone asks the City Council or Mayor to respond in writing to a question it would be appreciated if that response could be read to the viewing T.V. audience the following week. Coming up on Thursday, September 22, 6:30 P.M., the Kitsap Lake Community Association will meet at the Cascade Natural Gas building located on Kitsap Way. Finally, he hoped a settlement could be reached soon between the Bremerton School District and School Teachers Association. MAYOR,8 REPORT Mayor Lynn Hotton stated following the last City Council meeting, she was informed a question came up concerning the City's Grant Writer. She explained the reason no additional reports were available was due to the fact there is nothing to report. What she is finding is the person contracted to do the City's grants writing is finding his time committed to other things. Now, she will be looking in a different direction for grant writing assistance. City staff members have indicated they feel grants writing for specific departments is more specialized, therefore, she will be looking for a couple of people who have the expertise in those separate realms. The City has advertised for grants writing assistance in the newspaper and the Association Of Washington Cities has been contacted for referrals. Mayor Horton made the following responses to questions raised by Ruth Davie: (1) She believed Don Pratt, Director Of Community, was the City staff person who talked with the Westinghouse officials as reported in the newspaper article. Although the newspaper article stated the City would front the cost of extending utility services, what would actually happen is that cost would be shared jointly with Westinghouse and at that point the City would be looking for latecomers fees for the people who develop. (2) Question: why the City was encouraging tax based growth out side the City limits? Mayor Horton stated we aren't, it is anticipated that the site of the Westinghouse project will be annexed into the City, thereby coming part of the City's tax base. (3) Question: is Gordon Walgren still employed as a lobbyist by the City? Mayor Horton stated Mr. Walgren is employed by the City and TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 4 of 20 is paid an annual fee of $6,000 for his services. (4) Question: what is the residence of City employees and the number of City employees? Mayor Hotton explained the City has about 315 employees and she did not have data as to how many of them live outside the City. Residency is not a requirement for employment with the City and requiring such residency is illegal under Washington State law. The number of City managers residing inside the City limits is clearly in the minority. Mayor Horton did attend the Kitsap Regional Planning Council this date and welcomed Mr. Farr as a new board member. PUBLIC RECOGNITION Jack Lefcoski stated he would like to know what Mr. Walgren is lobbying and if he files a monthly/quarterly report to the City. He complimented Mr. Walgren on his ability to lobby legislators in Olympia, however, he wondered why the City couldn't get some Utility grant funding as a result of that lobbying? Nancy Buck, District #1 resident, announced the next District #1 Neighborhood Coalition meeting will be held September 15, 7-9 P.M., at the Sheridan Park Community Center. All incumbents and public officials running for elected office are invited to attend that meeting. And, she extended an open invitation to all Council members and citizens of Bremerton to attend that meeting. Ed Pietras, Vice President of the Martin Luther King Scholarship Fund, extended an invitation to the public to attend the Constitution Day Luncheon, at the Bayview Best Western on Sunday, September 18, 1994, 2:00 P.M., at a cost of $15.00 per ticket. Betty Gri~s, President of the Kitsap County AIDS Foundation, reminded everyone of their third "WALK" on September 18, 8:30 A.M., starting at the 'boardwalk. She expressed her amazement at the overwhelming generosity and support of Bremerton and Kitsap County residents to the AIDS Foundation. All funds earned from the "WALK" go back to help people suffering from the devastating affects of AIDS and to their families. Delores Hall stated she is a First Grade Teacher at View Ridge Elementary School and is representing the Bremerton Education Association. It saddened her that the Bremerton community is dealing with a Teacher's strike in Bremerton, the first ever against the Bremerton School Board. The Teachers do not want to be on a the "picket line" or striking, however, sometimes you have to do what you have to do. Their association wants the community to know that they are not interfering with the school construction that is going on and they want the strike to be over so they can TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 5 of 20 get back to school with their new students. She and her fellow teachers urge the citizens of Bremerton to seek information from both sides of the dispute. They want citizens to feel free to call the Bremerton Education Association Office. They also urged citizens to call members of the School Board and/or attend the meeting on September 8. They are very concerned about the following issues: (1) safety in our schools, which is a non-money issue; (2) class size; (3) receiving all of the insurance benefits that the State is extending for State employees; (4) loss of four supplemental days -two mandatory staff days where they go to prepare their classrooms and have in-service meetings, and two optional days where teachers receive pay for going to in-service classes outside of the working day. Gordy Byrd talked abut the Teachers strike and announced VFW Post 3694 along with the American Legion and Veterans Coalitions will hold a "Meet The Candidate" event at the American Legion Hall, located on South Cambrian, on September 10, 4:00 P.M. Shannon Cook reported 33 people were donors at the Blood Drive held August 29. And, Harrison Hospital Auxiliary will hold a Dinner/ Fashion Show to help benefit Harrison Hospital. De1 Knauss referenced remarks made by Councilman Law that Council study issues are discussed at Council Committee meetings prior to agenda items coming before the full Council. He pointed out three instances showing how that process is flawed: (1) the Forest Ridge Park easement issue; (2) Housing Loan Program; (3) recently adopted City Council Rules and Procedures. Members of the public have been asked to fill out 3" X 5" cards with their name and'address prior to speaking before the City Council. No where in Council's own rules and procedures is there such a requirement listed and one of the main things in those rules is that the City Council's presiding officer shall observe and enforce all rules adopted by the City Council for its government. He noted there is no requirement for the signature cards under Rule 9, #2 under Public Comment nor is there any requirement under Rule 9, #3 Public Recognition. Under Rule 9, #4 Public Hearing - it states the public should fill out a signature card and the presiding officer shall allocate time to everyone filling out a card". All he was trying to do was to point out that if Council wants to set rules, they should at least know what is in them before passing. He refuses to fill out a cared when speaking before the City Council based on that finding. He also pointed out the positioning of Public Hearings in Council's Agendas are clearly identified in Council's adopted Policies and Procedures. He referenced an Agenda item that had to do with Forest Ridge Park and pointed out a flaw, in his opinion, as to the City Attorney's reference that ordinances on Council Agendas constitute two public hearings. He emphasized if an item is a TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 6 of 20 "Public Hearing", then it should be listed under that specific heading. In reference to the Roosevelt Field Replacement Fund, in 1992 the City took in $45,000; in 1993 $123,000; in 1994, because of a loan taken out of the Rental Reserve Fund, the fund reflected $377,000. Expenditures out of that fund included demolition of the Bremerton Lumber site, demolition of the old Salvation Army site, and two downtown waterfront studies. As of last week there was approximately $81,000 left in the Roosevelt Field Replacement Fund. He stressed it has been 3 1/2 years and no park improvements have come out of this fund. He requested the Council.meet with the Parks Commission in order to get something going. The commitment to the citizens was to do parks replacement in the core area of the City, such asplayground equipment, expand Evergreen Park, etc. 7A - CALL FOR BIDS TO BE WAIVED FOR PURCHASE OF USED VERTI-DRAIN AERIFIER FOR GOLD MOUNTAIN GOLF COURSE, #AB94-188 Over the past several years, we have rented a Verti-drain Aerifier for our fall aerification of the greens at Gold Mountain Golf Course. We now have an opportunity to purchase a used Verti-drain Aerifier that has experienced less than 50 hours of use. A new aerifier would cost $23,000, including tax. Pat Harris, Director Of Parks and Recreation, explained the proposed aerifier is a piece of equipment that punches into the greens allowing better aerification and addresses issues with drainage problems and compaction from wear. McCormick Woods Golf Course offered to sell their aerator for $12,1000, which is approximately $11,000 off of the full price of $23,000. It is his understanding their interest in selling the unit, with less than 50 hours,. had to do with problems with a rocky soil base. The City is currently renting an aerifier at approximately $2,520 to do a full iS-greens. If this item is approved, the intent would be to aerify on a two-times per year basis, and a cost of $12,000 would allow payback over a 2 1/2 year period. He sees this opportunity as an excellent investment and something the Parks Department had hoped to purchase in the 1995 budget. Public comment - none. Mr. Farr questioned if Mr. Harris had any assurance that the same problem McCormick Woods Golf Course experience with this equipment would not also happen at Gold Mountain? Mr. Harris explained there is already a past history of using a comparable aerifier at Gold Mountain Golf Course. Mr. Farr questioned if the piece of equipment was a high maintenance item and its life expectancy? Mr. Harris stated it was a type of item that was not used on a real frequent basis and the life span would be approximately seven years.. #1327 #1380 TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 7 of 20 Mr. Winters asked how the City found out McCormick Woods wanted to sell their aerifier? Mr. Harris explained Pat Westhoff of the Parks Department was contacted by McCormick Woods. Pat Westhoff explained the City has already checked out the equipment mechanically and a successful test run was made at Gold Mountain. The soil at Gold Mountain is sandy soil and no problems were experienced. Mr. Dawkins questioned if the aerifer would be used only on the greens? Mr. Harris stated no, it would also be used on areas outside of the greens. Mr. Colvinquestioned if the City currently owned an aerifier? Mr. Westhoff stated the City currently owns equipment that punches holes and draws out a core of soil each time it enters the ground. The subject piece of equipment is a "solid core" kind of aerifier and when a hole is punched nothing comes out of the ground, so the greens are playable after being aerified. M/S/C/U(Overson/Dawkins) motion that the call for bids be waived for the purchase of (1) Verti-drain Aerifier, Model 105.145 in the amount of $12,000 from McCormick Woods Golf Course. 8A - ORDINANCE NO. 4480 (SECOND'READING) AMENDING THE OFFICIAL ZONING MAP; AMENDING THE ZONING FOR PROPERTY AT 25TH AND SNYDER FROM SF-2 TO SF-3, #AB94-186 Public comment - none. M/S/C(Overson/Farr) to approve Ordinance No. 4480 on second reading, amending the Official Zoning Map of the City of Bremerton for property located in the 2500 Block of Snyder Avenue (Haselwood Rezone). Vote on motion: In Favor - Law, Colvin, Winters, Overson, Farr, Huff-Menees Oppose: Neville Abstain: Dawkins Motion carried. 9A- ORDINANCE (FIRST READING) AMENDING B.M.C. 9A.32 TO CREATE A NEW SECTION ON CRIMINALIZING HARASSMENT, #AB94-189 The prevention of serious, personal harassment is an important governmental objective. Toward that end, this ordinance makes unlawful the repeated invasions of a person's privacy by acts and threats which show a pattern of harassment designed to coerce, intimidate, or humiliate the victim. Enactment of this harassment ordinance is consistent with prosecuting harassment over the telephone which is currently #1530 TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 8 of 20 prosecuted. (See B.M.C. 9A.32,060) Ian Sievers, City Attorney, explained this is currently in State law but prosecuted at the County level as a misdemeanor. There are also two Class C felonies: (1) if someone threatens death or inflicts bodily injury; (2) if someone has a prior conviction the second or subsequent convictions are Class "C" felonies. This is not something the Police Officer observes in person and the complaints are written in the Attorney's office, however, citizens typically call his office and expect them to prosecute and file their complaints. He saw this as a service his office could provide by expanding the City's Criminal Code to include the issue of harassment without a significant impact on his staff. Jim Litow, Warren Avenue, stated he was pleased to see this amendment come forward due to the fact his family has been a victim of harassment. The type of harassment they have experienced include: threats to his family, bodily harm, arson, property damage, and theft for almost a year and they have attempted to get prosecution through the City. The problem they found was the fact the reporting officer was not present at the time the harassment occurred. He urged Council to pass this amendment swiftly. Mr. Law questioned if the same language was used in the Ordinance as that in the County or State Code? Mr. Sievers stated yes, except for the additional section on the felony charges. M/S/C/U(Colvin/Dawkins) to approve ordinance on first reading making harassment unlawful, and amending Chapter 9A.32 of the Bremerton Municipal Code. 9B -,ORDINANCE (FIRST READING) AMENDING PENALTIES FOR THIRD AND 8UBSEOUENT OFFENSES FOR SHOPLIFTING, #AB94-190 The prevention of recidivist theft behavior is an important governmental objective. Toward that end, this amendment makes a third conviction of shoplifting punishable by jail time. Ian Sievers, City Attorney, stated the more detailed reasons for this ordinance are contained in Section 5 - Impact Of Non-Passage. This. is based on some continuous experience by the City's prosecutor and steps were taken some time ago to have a second offense jump up in the penalty to $300, which cannot be suspended or deferred. However, he believes this additional step needs to be taken since monitory sanctions are not doing the job. A good portion of shoplifters do not have the money and don't bother to pay the fines and does not provide them any incentive to not re- offend. Therefore, he is proposing a jailable offense on the third conviction. Up to this point, the first and second conviction is a misdemeanor, but there is no jail time. #1749 TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 9 of 20 Public comment - none. Mr. Overson questioned the following wording as to definition: "A person is guilty of shoplifting if he or she wilfully takes possession of goods, wares, or merchandise of ...". Mr. Sievers explained it meant if a shoplifter took position of any goods, any wares, any merchandise of a value of $250.00 or less. Mr. Neville noted upon the third or subsequent conviction the maximum penalty will be 90 days in jail or a $1,000 fine. He questioned is there is a minimum or is that strictly the Judge's discretion and would that language reach the conclusion the City Attorney desired? Mr. Sievers stated it is his hope that it will bring about the result they desire, however, they always try to leave the discretion with the Judge. The language in the ordinance gives the Judge the opportunity or flexibility to impose some jail time, which is not available to him at the current time. Mr. Neville asked if a "life sentence" would be considered for someone convicted for the third time? Mr. Sievers explained they wouldn't get sentenced for life, but hopefully they would get some jail time, but some or all of the jail time might be suspended for probation or certain conditions of probation. There is no mandatory one-day jail time like DWI laws. Mr. Colvin questioned if he understood correctly the maximum penalty is 90 days for the third conviction? Mr. Sievers stated yes. Mr. Colvin questioned the penalty for shoplifting that amounted to more than $250.00? Mr. Slevers stated if the amount is more than $250.00, the case would be deferred to the County for a felony prosecution because it would be a Class "C" felony. M/S/C/U(Neville/Winters) to approve ordinance, on first reading, amending the penalties for first and subsequent offenses for Shoplifting, and amending B.M.C. 9A.36,050. 10A - RESOLUTION NO. 2479, APPROVING 1995 - 2000 SIX-YEAR TRANSPORTATION IMPROVEMENT PLAN, #AB94-191 The Six Year Transportation Improvement Plan is prepared pursuant to RCW 35.77.010 and RCW 36.81.121. The Plan is updated annually and filed with the Secretary of Transportation, Department of Transportation Local Programs Office. It is intended as a planning tool for local, state, and federal transportation funding entities. The attached Plan has been prepared for City Council approval and will be submitted to WSDOT. Dan Eisses, Senior Engineer, directed Council's attention to a summary of changes to this plan from last year's plan: (1) Deletion of 11 completed projects. (2) Kitsap Way Reconstruction, Weslon Place to Auto Center Way TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 10 of 20 delayed from 1994 to 1995 due to coordinating with State concerning SR3 southbound off-ramp. (3) llTH Street Reconstruction from Chester Avenue to Warren Avenue delayed from 1994 to 1995 due to State TIB funds being unavailable. No new projects have been added to the plan for the following reasons: (1) The City-wide level of service traffic study currently being conducted by Parametrix will recommend future projects and priorities. (2) The Engineering Division is currently investigating a Pavement Management System. This will include a resurvey of the existing road conditions, which will drive the prioritization of the local projects. There are enough local projects on the current list that scheduling these projects will not be affected. He emphasized the reason this plan is before Council is because it is a State mandate that a plan be passed. Public comment - none. Mr. Neville questioned if he was correct that the items listed were not in a priority listing schedule? Mr. Eisses stated no, they did try to list the projects by priority, but there are a couple different sections to the plan. The first section is the Arterial Street projects, which goes through #9, then there are three miscellaneous projects, followed by local projects. Funding for arterial street projects makes a difference in their priority status. Mr. Neville questioned if Item #10/City-Wide Street Repairs was more like the"pothole" patrol? Mr. Eisses stated that is one of the miscellaneous projects and included as safety valves. The existing Street Department budget handles potholes. There is the possibility that funds could be taken from that item by having it included on the plan. Such action has never been taken and it would take away from the other projects we have going. Mr. Neville noted there was no listing for alleys and questioned if the safety valve would encompass alleys or was that strictly a "pothole" patrol item? Mr. Eisses stated it is strictly a "pothole" patrol item. Mr. Colvin asked for an explanation how citizens can report problem areas to the "pothole" patrol. Mr. Eisses explained the "pothole" patrol is carried out by the Street Department and there is a telephone number that can be called to report the location of potholes. Once reported, the Street Department is very good about going out and repairing the area. Weather does play a role in how quickly something gets repaired. Mr. Colvin stated the City did a TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 11 of 20 good job with correcting some of the problem at the llth and Warren Avenue intersection. He questioned if any further repairs will be made to that area? Mr. Eisses explained grinding down the street surface was a temporary solution and the permanent fix is to put concrete on that section of the roadway. Funding for that project has been secured through the State Transportation Improvement Board, however, those funds will not be available until 1995. Mr. Farr asked for a more detailed explanation of the Pavement Management System referenced in the summary report and when it will be on line? Mr. Eisses stated the City's current Pavement Management System is strictly a rating between "0" and "5", with "0" being the worse condition and "5" being in good condition. The streets are rated every two years and that is where the current local projects list evolves. The streets need to be rated again using a system of "0" to "100", which gives more flexibility, and to tie it to the amount of traffic on the street. Mr. Farr asked if the Pavement Management System would be generated in-house or outside as a consulting activity? Mr. Eisses stated that is currently under discussion in the Engineering Department and they are leaning toward doing it in-house, which would give them more control and bUdgetwise it works out better. At the time the City Engineer was before Council with this plan a year ago, he talked about re-evaluating the City's pavement management design. The Engineering Department is only slightly ahead of where they were a year ago, which can be a problem when trying to manage it in-house. Mr. Overson noted there are 43 items on the list and 42 of them have start dates. One project (one-way streets/Central Business District) that he wished was already done did not have a start date, but it does have funding. He questioned if there was a reason why Priority Item #4 did not have a start date? Mr. Eisses explained that project was incorporated into the Gorst-Bremerton Connector project. The one-way traffic study traffic system became a project before the Gorst-Bremerton Connector project and when it did become a project the one termini of that project was the ferry terminal and it was decided to wrap that one- way traffic system into the Gorst-Bremerton project. What has not happened is dropping this project off the list and the reason for that is there are funds still deposited in that project that need to be transferred to the Gorst-Bremerton project. Mr. Oversonquestioned if Mr. Eisses was saying the project would be done, but not as a separate project? Mr. Eisses stated the Environmental Impact Statement (EIS) for the Gorst-Bremerton Connector project will have the one-way system studied. Mr. Winters stated he sees the #4 project moving up to #1 priority. Mr. Eisses pointed out the Gorst-Bremerton Connector project is so large it is moving very slowly. Mr. Winters questioned if public input wouldn't be part of #2396 TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 12 of 20 the EIS process. on the Gorst-Bremerton project? Mr. Eisses stated yes, there has been quite a bit of input given, however, the public has not seen the project for the last 6-8 month because of the different requirements the Federal government wanted in the EIS document. They are very close to having concluded concerns brought up in January and within 1-3 months should be back out to the public for input. M/S/C/U(Law/Winters) to approve Resolution #2479, approving the City's 1995-2000 Six Year Transportation Improvement Program and direct the Mayor to forward the Resolution and Plan to the Department Of Transportation Local Programs Office. 10B - RESOLUTION NO. 2480 SETTING FEES FOR GOLD MOUNTAIN GOLF ,COURSE, #AB94-192 In order for the City's Gold Mountain Golf Course to remain financially sound through the current period of expansion and on into the future, it is necessary to implement fee changes on a regular basis. As has been demonstrated through the financial modeling of the course expansion, a rate of increase of approximately three percent over inflation is required for the course to remain financially sound. Fees at the course were last changed January 1, 1993. The proposed fee changes will increase course revenue by approximately 12.4 percent. Additionally, the proposed resolution establishes rates for the new course as a function of the rates on the current .facility. This will allow staff to project future course revenues with greater certainty which in turn will help in obtaining financing for the expansion project. Pat Harris, Director of Parks and Recreation, stated the Gold Mountain Golf Course Board of Directors have recommended an overall fee increase of 12.4%. This would be a $2.00 increase for an 18- hole rate and a $1.00 increase for a 9-hole rate. Proposed rates were posted at the Gold Mountain Golf Course Club House approximately one week ago and both the Men and Women Clubs Advisory Boards were given copies of the proposed fees. The written policy for Gold Mountain Golf Course says the course will operate as an Enterprise Fund with the objective of making a profit for the Bremerton Parks and Recreation Department while meeting the needs of the golfing community. He believes the rate increase being proposed is reasonable and provides for both the profitability of the golf course as well as meeting the recreational needs of golfers. Currently, as an aggregate the cost to play a round of golf is $14.00. A recently completed survey in June of 1994, showed that on the average 24 local public municipal course the average rate for a round of golf is $23.00. With the proposed rate increase, Gold Mountain will be below that average. He raised the question "why are rate increases necessary"? He felt TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 13 of 20 there are several reasons: (1) maintenance and operations of the golf course. It is planned to upgrade the maintenance facility and spending close to $100,000 to rebuild some of the existing buildings; (2) reinvesting back into the golf course to make it a better course. Recently, there have been several news articles praising the condition of the course at Gold Mountain, one in particular that stated it was one of the finest public courses'in the State of Washington. The Parks and Recreation Department benefits directly from the profitability of the golf course. A fund has been established whereby the Parks Department receives a portion of the profits and those monies are available for park capital improvements, which are badly needed. Lastly, setting fee levels at a sustainable level is very important for financing the future golf. Rich Hanna, City Treasurer, stated as discussed at length in several Study Sessions and Council sessions addressing issues of the design of the new golf course, all financial modeling of the proposed or ongoing expansion of the course is predicated on modest periodic fee increases occurring on an annual or bi-annual basis at a rate 2.8% greater than inflation. The rate of increase being proposed at this time is a direct function of that financial modeling and are in step with the financial assumptions that were made when the model was created for going forward with the expansion. For that reason, he believes it is important to pay close attention to that point and he would be watching it closely when going to the Bond Market to borrow substantial amounts of money to finance the construction of the new course. It is important to keep in mind the financial commitments being made when the decision to go forward with the expansion was made. He does not expect people in the Bond market to lend the City money if we are not willing to remain consistent in our actions with the assumptions underlying all the financial analysis. The following individuals spoke in opposition to the proposal: John Baker, John McDonald, Jack Lefcoski, Horace Dicks. Following are reasons why the above named speakers were not in favor of the proposal: (1) Seniors were unfairly singled out under the proposed rate increase of 25% for Single Seniors; (2) most communities try to provide recreation for adults, but it looked like that group was getting a "kick in the pants"; (3) could understand the reasoning for an increase, but specific items were unfairly raised; (4) inadequate public notice to those affected; (5) why wasn't the proposed rates published in the Men's Club newsletter, (6) suggestion - let the senior players purchase a pass for $600.00 and be immune for any increases for a five year period starting in 1995; (7) objected to being restricted from playing after the first two hours. TAPE #1332 City Council Reg. Mtg. Minutes September 7, 1994 Page 14 of 20 Mr. Law stated he has reviewed the proposed fees and was not comfortable with them and was discouraged to see that people in the Bremerton/Kitsap area were not getting a discount. He has been told that administrative costs and time involved with such a program is impossible to handle. He suggested reducing the 25% increase for Single Seniors to 17%, which is the average of the discounted rounds. As an example, instead of having the Annual Senior Couples Pass go from $900 to $1,125, have it go to $1,053. That reduction would cost the Treasurer's budget between $10-12,000. annually. He felt 25% increase for Senior Singles was an unfair amount, likewise it addressed local/County/North Mason golf players. Mr. Winters asked if anyone from the Golf Course Board of Directors could address the point about when the proposed rates were posted at the Club House at Gold Mountain Golf Course? Pat Westhoff, Recreation Program Coordinator, explained the proposed rates were posted on the Men's Bulletin Board and in the Women's locker room at the Club House the previous week. Mr. Winters asked if Mr. Hanna could give an explanation how the 25% increase for Single Seniors was determined? Mr. Hanna stated in addition to changing the existing fee structure, among the proposed rates is a new fee - Low Income Senior - to be sold in the form of a 10 round punch card for the price of $60.00. The criteria for eligibility would be the same as those for obtaining low income discounts on utility rates (62 years old and a household income of less than $18,000). He also mentioned at the Committee meeting part of the reason why the increase in the Senior passes is so large on a percentage basis is that these are the most heavily discounted rounds sold at Gold Mountain. Based on the revenue and rounds played on Senior passes in 1993, the average revenue per round on that type of play was $7.31. For each individual holder of that pass, they are paying the stated rate and how much they are paying per round is entirely dependent on how many times they are able to play the course. Clearly, a 25% rate increase is a very large in terms of a percentage rate increase. TAPE #1233 Mayor Lynn Hotton stated about five years ago an indepth study was made as to how local residents could be given a discounted greens fee and at that time the determination was made that it could not be done easily. She disagreed with that opinion and felt that through Voter Registration local residents could be identified and charged a lesser fee because of their residency. Because of the punch cards/Annual Passes reflected the lesser rate for play on week days, it was felt those rates would be generated mostly by residents of Bremerton, Kitsap County and surrounding areas rather than Seattle or Tacoma. In a sense, a break is given to local TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 15 of 20 residents because of proximity to the locals. Mr. Law stressed he did not want to see the local golfers penalized by a higher increase and he saw nothing wrong with increased play by the punch card and Annual Pass holders. Mr. Farr stated he was more uncomfortable with this proposal than when it came before Council's Operations Committee and it is basically for the reasons stated. He calculated discounted rounds account for only 1/3 of the total revenue, yet the disparity betweens the percentages of increases to the discounted rounds verses non-discounted rounds is amazingly off scale. He is not a golfer and he can see the difficulty running an operation that has two basic opposed functions: (1) an Enterprise Fund that provides revenue to the Parks Department; (2) public owned facility to provide a service to the users. He also sees that with the golf course expansion it looks like the cost to the people who play the course for the expansion will be kind of heavy and he did not like to see such a rate structure. He does not know why the discounted rounds have to suffer any more of an increase than the average increase for the non-discounted rounds and he would like to see the proposed rate schedule go back and start over and come back with something he felt was more equitable to the discounted round people. Mr. Colvin commented it is impossible to please everyone. He questioned if there is a requirement for a certain period of time that a notice should be posted for the public prior to taking any action? Ian Sievers, City Attorney, stated not unless there are some special rules that the Golf Board itself adopted for rate increases. The City typically sets rates by Resolution and that requires only placement on the City Council Agenda. Mr. Colvin questioned if the Parks Department was aware that a Men's Club existed and did the City make any effort to notify them of the rate increase proposal? Mr. Westhoff stated a Golf Course Board member was given a copy of the proposed rates prior to it being posted in the Club House. Mr. Colvin stated he did not want to leave the impression that the Men's Club was left out of the circuit. Mr. Westhoff noted he personally posted the information in the Club House. Mr. Colvin stated he received some phone calls from people wanting to know the following and if it was public information: (1) how much does'the Golf Course Manager get paid? (2) What is the income from the Golf Course? Mr. Sievers explained all of that is public information. Both the Golf Pro and Greens Superintendent contract are public documents. He recalled both started with a base salary with incentive clause based on green fees of the prior year. The amount of money taken in at the Golf Course is a matter of public record. Mr. Colvin questioned in comparison to other golf courses, is the Senior citizen fee more lenient than other TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 16 of 20 areas? Mr. Sievers stated he would defer answering that questions to Mr. Hanna or Mr. Harris? Mr. Hanna stated he did not compare specifically senior passes at Gold Mountain to other municipalities. What he did look at was the over all revenue per round in the composite'of our rate structure and how that compares to other public and privately owned golf courses, but in similar market strata in the Puget Sound Area. Mr. Colvin asked if Council modifies the Senior Single Pass rate, what impact will that have on the total financial picture of the project? Mr. Hanna stated the modification to the presented Resolution, as suggested by Council Law, will not have a significant impact on the projected revenues of the course. Mr. Colvim called on John McDonald to speak. Mr. McDonald stated there is a Men's Club that is comprised of over 600 members, headed by a Club President, and they also have a Club newsletter. He emphasized the proposed rates were not included in their most recent edition of the Club Newsletter. He questioned if the revised Senior Singles Pass is approved, would golfing privileges include weekends and holidays? Currently, the pass holders only play Monday through Friday. Mr. Law called on Horace Dicks to speak. Mr. Dicks pointed out the Men's Club was holding its regular meeting at the same time this meeting is being conducted. If the proposed rates were posted on the Men's Club bulletin board a few days ago, there has not been a chance for them to discuss it as a group. He found being banned from playing the first two hours was objectionable. Mr. Westhoff pointed out the limit time of play would be on just the new golf course and had no affect on the current course. Mr. Law questioned if the designation of limited time of play could be deleted? Mr. Westhoff explained the first two hours of play is available to everyone, after that time period those with annual passes would be on standby for any tee off times that may be open, which applies to the new golf course only. Mr. Overson raised several points about what is considered "existing course" and what is identified as "new course" and how the new rates affect both of those areas. He wanted the public assured that once the new course came on line the two playing areas would be treated as two distinct courses and not rolled into one new 36-hole golf course and the fees for each course would be implemented separately. He asked Mr. Westhoff, based on his information, when would the new course fees take affect? Mr. Westhoff stated he hoped play on the new course would start in 1997. Mr. Overson stated he understood why action was being taken at this time on setting fees for the new course due to the financing aspect. Mr. Westhoff noted it might be that they will have to ask for an adjustment on the rates for the new course after the Bonds are obtained. Mr. Overson pointed out he believed Mr. Hanna tailored this proposal to fit projected financial needs, TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 17 of 20 however, he is concerned about the Men's Club members aggravation over the announcement of the proposed rates and Agenda Item. He questioned whether or not the Golf Course Board Of Directors had discussed the need to raise rates for quite a while and if the "seniors" had a representative on that board? Mr. Westhoff stated Council members Colvin and Dawkins serve on the Board of Directors. Mr. Dawkins pointed out the Men's Club meets on the same night and time as the City Council, which precludes him from attending their meetings. Mr. Overson stated he felt the communications on this issue should have happene~ better with the Men's organization. Mr. Westboll stated he wasn't sure there is a "seniors"' organization at Gold Mountain, but there is a Men's Club and he was told by one Board member only 30-40 members are active even though they do have 600 members. Mr. Overson stated he was surprised that the administration set themselves up for criticism by suggestion a higher increase for the Seniors Single Pass than the other increases. He supported Mr. Law's earlier suggestion. Mr. Colvin stated he felt it was just common sense to have a member of the Men's Club on the Golf Course Board of Directors. Mr. Westhoff explained the Men's Club has not been represented at the Advisory Committee meetings. Apparently the current President of the Men's club is employed and unable to attend their meetings, however, a another members was asked to attend as well. Mr. Fare requested Mr. Hanna do some calculations to determine the impact of reducing the discounted rates to a 9.5% increase. Mr. Hanna stated having conferred with the other staff members it does appear the financial impact of the modification proposed by Mr. Law is trifling in the overall scheme of the budget for the golf course and would in no way jeopardize the financial integrity of the course. In all candor, perhaps it is a better idea than the one proposed by staff and is something they could support without any hesitation. Mr. Overson asked for clarification of the proposed fees? Mr. Hanna stated Mr. Law proposed adjusting the Senior Annual and Semi- Annual Passes at a 17% rate increase. He suggested a rate increase of 16.7% since that is the rate increase for the non-senior annual and semi-annual passes. Mr. Fare asked what kind of proposal did he come up with using the 9.5% rate of increase. Mr. Hanna stated he was not able to work on that proposal in the time he had available to provide a response. Mr. Fare stated he would like to see if his proposal was workable or if it was "out of the question". Mr. Colvin asked if the recommended rates would apply to the new or old course? Mr. Hanna explained Exhibit A, attached to the Resolution, shows two columns labeled "Existing Course" and "New TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 18 of 20 Course". The "old" course is the existing 18-hole course and the yet to be built 18-hole course is the "new course". What is envisioned is a two tiered fee structure and the new rates on the new course, when completed, will be modestly higher than those on the currently existing course. President Huff-Menees stated she is uncomfortable with the notification process even if the proposed rates were posted for a week. When there is a men's group comprised of seniors, who make up a large number of the golfers, and they hold regular meetings and publish a newsletter, she would like to see the City staff take advantage of those.opportunities in the future. Mr. Neville stated he served on the Parks Commission when the previous Golf Course rates were raised and that process involved both the Men's and Women's Clubs having representation. He could not understand why such involvement had not been implemented for this rate increase process. He does understand the Men's Club is used by some members to just establish their handicap and do not take in all the amenities that the Club offers. He pointed out the golf course has been in existence for a number of years and during part of that time there never was any pay back for the money that was invested for the residents of Bremerton who put their hard earned tax dollars towards its development. It was suppose to have been and will be and is now a revenue generator for the Parks Department. Just within the past couple of years, the Parks Department has received revenues from the golf course to be used to buy some quality equipment for City parks. Now, a lot of that money will be diverted back into the golf course for future revenue for the Parks Department. He emphasized the City's Parks Department is seriously lacking actual dollars to be used for the citizenry of the City. The quality of the golf course has increased immensely since the Alexander brothers took over management and care of the facility. Earlier this evening we saw one item of the cost of equipment needed to maintain the source..nothing is cheap and it won't get any cheaper as time goes on. To maintain that quality funds must be put back in the course. He questioned if there is an urgency for this item to be passed at this time? Mr. Hanna explained the City will be going to the Bond market in the near future (between now and the end of the year). It would be incorrect to indicate they had to have passage of this Resolution at this time. Mr. Neville stated having sat in on the meetings last time when it did involve the Men's and Women's Clubs for their input, it was no simple matter going back and having one meeting, but a series of meetings. He would like to see this proposal, along with some alternatives such as those suggested by Mr. Law and Mr. Farr, etc., taken before the Men's and Women's club membership. #1674 TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 19 of 20 Mr. Colvin asked if there was any advantage or disadvantage if the decision on this item was postponed? Mr. Manna stated clearly the sooner this issue is addressed and dealt with the more quickly he can get on with the issue of arranging financing for the course expansion. As indicated to Councilman Neville, it is not accurate to portray it as something that must be passed this evening. He appreciated everyone's comments regarding the apparent inadequacy of the notice provided to the Men's and Women's club. In the context of the Board of Directors and Advisory Committee, there is a great deal of input from the golfing public. He noted that is not pure democracy in that each and every member of the Men's or Women's club or every customer of the golf course is party to that information, but clearly through the representative process those folks have been represented in the process that lead up to this proposal coming before Council. Mr. Colvin stated he agreed that sufficient study had been given to this proposal, however, he supported Mr. Law's recommendation. Mayor Hotton stated if Council wishes to postpone this issue in order to give more time for review by golfers that was fine with her, however, she did ask that a time frame be placed on it to bring it back before Council. She also emphasized the heavy work load Mr. Hanna was facing and the difficulty he would encounter if this item was delayed very long. Mr. Colvin asked if one of the representatives from the Men's Club would come forward and give their opinion on the suggestion by Councilman Law to reduce the Senior rates to reflect the same rate of increases as the other categories. John Baker stated he believed the general feeling of the "seniors" is that their rate should be proportional to the other rates. He also reminded Council there is a Women's Club and their input should also be considered. Mr. Overson pointed out staff has undertaken the research and provided the analysis and the City is running a golf course, not a popularity contest. The numbers have been analyzed a number of times and this proposal is predicated on the need of the course, not on whether it is popular with the golfers. Council has been given a great deal of financial support as to why this proposal is a "super buy" for any golfer in the area. In his opinion, there is no need or value for staff reanalyzing the data or making further presentations to golf clubs. Every year property tax rates are raised throughout the City and citizens have no input on that action, which he feels is a far greater consideration than raising the golf fees $2.00 per round. M/S/C/(Law/Dawkins) to pass Resolution #2480, setting forth a fee structure for Gold Mountain Golf Course and repealing Resolution #2424, with the following changes: Annual Pass Senior Single $700.00; Annual Pass Senior Couple $1,050.00; Semi-Annual Pass TAPE #1333 City Council Reg. Mtg. Minutes September 7, 1994 Page 20 of 20 Senior Single $350/$410; Semi-Annual Pass Senior Couple $525/$585 Vote on motion: Motion Carried. In Favor: Opposed: Overson, Neville, Law, Dawkins, Colvin, Winters, Huff-Menees Farr With no further business meeting adjourned at 8:17 P.M. KLM/SH-M/me cc: Normal Distribution File/Vault