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HomeMy WebLinkAbout12/08/93TAPE #1156 UNAPPROVED DRAFT CITY,COUNCIL MEETING MINUTES DECEMBER 8, 1993 #00323 #0039 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, December 8, 1993, at 5:30 P.M., with Council President Eileen Fitz presiding. Council members present were Richard Neville, Lynn Horton, C.R. "Tiny" Collins, Morris Dawkins, Russ Johnson, Lon Overson, Al Colvin. Councilman Hank Waibel was absent. Also present were City Attorney Ian Sievers and City Clerk Kathleen McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Fitz and Invocation given by Reverend Rodney Smith of First Christian Church of Bremerton. CONSENT AGENDA A. Minutes of Meeting -- November 10, 1993 #AB93-232 B. Minutes of Meeting -- November 17, 1993 #AB93-233 C. Bid Award Recommendation for Chlorine #AB93-234 Products 1994, Awarded To Jones Chemicals M/S/C/U(Horton/Colvin) to approve the Consent Agenda as presented. CLAIMS/WARRANT REGISTERS Vouchers audited and certified by the auditing officer as required by RCW42.24.080, 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 December 8, 1993, the Council does approve for payment those vouchers included and further described as follows: 171439 through 171550 in the total amount of $315,540.86; and regular payroll in the amount of $638,016.55. COUNCIL MEMBER REPORT8 Mr. Johnson stated it was nice to be back home from his travels and wished everyone "Happy Holidays". Mr. Dawkins reported he attended the Pearl Harbor Day ceremony, which was a nice memorial service followed by a reception at the Bremerton Servicemen's Center. He encouraged everyone to stop by the Servicemen's Center and view the memorabilia about servicemen who have served from this area. TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 2 of 21 Mrs. Horton stated it was good to be back after she and her family spent several days visiting Manhattan, New York. New York is an exciting city but in a way it is an intimidating city. One thing she was again struck by, following her visit, was the amount of graffiti and the sense that the gangs have taken over and people have learned to live with it. She emphasized the need for Bremerton to never give up on the fight against graffiti and gang activity or allow them to intimidate our lives. Today, she attended the Kitsap Regional Planning Council board meetings and one of the things they discussed during the Department of Health meeting was the fact Kitsap was the only County in the State that has not experienced an increase in teenage pregnancy. She viewed this as a credit to the Health District and their education program. We would like to see incidents of teen pregnancy go down, but at least it is not increasing and Kitsap County is leading the State of Washington in that area. A meeting was held with representatives from the Department Of Transportation on ferry service for this area, which she found the content of their presentation to be lacking. A major job of lobbying the State Legislators, their staff and the new Transportation Secretary, needs to be under taken so that changes can be made to the presented Transportation Plan. The plan does not address additional passenger only ferry service and talks about maintaining the 1987 levels of ferry service to Bremerton and the overall ferry service. Lastly, someone relayed the following question: "what is the City's position on the "Norseland" lawsuit?" Ian Sievers, City Attorney, stated there are some private lawsuits and a Department of Ecology (DOE) clean up action on the Norseland site. For a short while the City participated with some of the other parties, Port of Bremerton, Kitsap County and the U.S. Navy, in working toward a clean up agreement with DOE, while a review is made of the City's liability position. On the clean up action with DOE, the City Council's position and its response has been made public in several letters to DOE, who is reviewing the Washington Model Toxic Control Act, which was passed by Initiative 1986. Language in that Act is very clear that parties that arrange for disposal of toxic waste had to own or possess those wastes. The public outcry was "let the polluters pay". The City's position at about the time Norseland was for used as a disposal site was not as a generator or owner of toxic waste or municipal waste of any kind, but as a regulator of those wastes. The City had a control for pick up of garbage that regulated rates and the means of pickup, but the City at no time owned the waste or generated the waste. Therefore, the City told DOE that it had no liability for clean up under Washington's law. Mrs. Horton reported on December 7th she attended the Pearl Harbor Day ceremony and one of the attendees was a Medal Of Honor recipient, Bob Bush, whom she has known for many years. When she was a child she was aware that Mr. Bush was a Metal of Honor recipient, but it was not until she was an adult and TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 3 of 21 actively serving on the City Council that she realized what action he went through, as did many other people, to receive that honor. She felt the speaker at that ceremony did a marvelous job relating some of the horrors of the day that Pearl Harbor was bombed, which really brought home how lucky we are to have had people go through such experiences while protecting our country. She extended a much deserved "Thank You" to those who served in that capacity. Mr. Overson reported to get into the spirit of the season he and his wife have been attending some of the local Christmas Tree lightings. Mrs. Fitz reported at the previous Council meeting a request was made by a young woman asking that the City sell to her a piece of property that use to be her homestead. Her intended use of that site is to build a house on it. That piece of property is owned by the Parks Department and located near Stephenson Canyon. President Fitz requested the City Clerk to reiterate what Council has talked about regarding that piece of property as well as other Parks property. Kathleen McCluskey, City Clerk, stated that particular site, along with the other City Parks' property, is protected by the City's Parks Ordinance, which protects Parks property from sale and development. The young woman making the request had gone before the Parks Commission prior to coming before the City Council and they denied her request. Those properties are strongly protected by the City and there is no desire to see any of the open space and current Park property developed. In Addition, this particular parcel was acquired from the Federal Government as and for Parks property and it would be very difficult, if not impossible, to sell that kind of property acquired from the GSA. A letter has been written explaining the City's position and background on the site. She believed the Council's and Parks Commission's policy has been to not sell any parcels that have been designed as Parks' properties. Typically, the City likes to work with people, but not with open space. Mrs. Fitz stated she wanted to bring this explanation to the publics' attention so those listening to the earlier discussion had an opportunity to understand the City's response. PUBLIC RECOGNITION Mayor Louis Mentor reported on the following activities: (1) Hospice "Tree Lighting" on December 3. (2) City Hall Christmas Tree lighting December 4. (3) Christmas Farmers' Market will continue each weekend until Christmas. (4) Meeting of Kitsap County elected officials at Olalla Grange held December 4. (5) Bremerton Yacht Club's cruise for special people, both children and adults held December 5. TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 4 of 21 (6) Luncheon held on December 6, at Olympic College, honoring Jacob Lawrence, a nationally known artist from this area. (7) Pearl Harbor Day ceremony on December 7. (8) PSNS Tree Lighting Mayor Mentor extended a special "Thank You" to Mayor Lobe, Mayor Dawkins, Mayor Nelson and Mayor Jarstad, who hosted his wife, Paulette, at a special luncheon where they expressed their appreciation for the work that she did in getting all the past Mayor's pictures assembled and hung in City Hall. Upcoming events: Big Brother/Big Sister banquet evening of December 8, at the Kitsap Pavilion. Emily Mosha, Kitsap Community Action Program (KCAP) Family Advocate with the Head Start Program, presented Mayor Mentor with a picture collage that she put together of activities that took place at the dedication ceremony for the 4th Street project on November 16. Mayor Mentor accepted the gift and thanked Ms. Mosha on behalf of the City. Robert Ackerman, 3706 Arsenal way, referenced the construction project of a multi-family facility being build on the old "Hadden School site". It concerned him that development was being allowed in the City without requiring additional open space be made for parks. Jack Lefcoski, West Kitsap Lake, stated he serves on the Citizens Action Committee for growth management and in response to Mr. Ackerman's request, one of their strong elements is to create more kiddy playgrounds, not athletic fields. Where that kind of development will most likely take place is in the new areas. Builders will be encouraged to incorporate playfield open spaces as part of their landscape. Mr. Ackerman stated what he is talking about are areas around town where the only place for kids to play is in the street, such as on Lafayette Street. Phyllis Kimbel stated on behalf of the Kitsap Indian Center she invited everyone to the mini POWWOW that will be held at the Amy Bernett Gallery on December 11, 10:00 AM - 6:00 P.M. Reverend Rod Smith, President Board Of Directors of Kitsap Community Action Program, stated he was sure Council was aware of the many things that KCAP is involved in as they seek to assist and support families in Kitsap County. The continued growth of their program has created the need for additional space, which they have found in the 4th Street Building. KCAP is very thankful for the City's support in readying the office space in such a short period of time and their personnel are in the process of unpacking and TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 5 of 21 getting settled in their new quarters on the 5th floor. KCAP has reached the point of having 150 employees and brings the community in excess of three million dollars each year. One of their dreams has been to find ways in which they can continue helping families become economically self-sufficient. They were aware that it took more than providing emergency shelter. They have tried, in recent times, to develop resources by which they could help people over a longer period of time to maintain stability and to find the resources for education and child care to get them in the position of being economically independent. To that end, they have worked together with the City and other elements within Bremerton to create a model - a transitional house (duplex). He extended an invitation to the City Council members to the ground breaking of that facility, on Friday, December 17, 2:00 P.M. in the vicinity of 9th and Broadway. They are also hopeful that in the near future they will have a parking spot for the citizens of that neighborhood, which would be a joint venture between KCAP, citizens and the City. President Fitz acknowledged the attendance of a Brownsville Pack of Weblos at the City Council meeting. President Fitz stated when people bring issues up during Public Recognition they may wonder why the City Council does not make a respond at that time. She emphasized the City Council listens to each person as they speak and may not be in a position to comment at that time, however, they do tryto provide a response at a later time. She did not want people to think the City Council ignores issues that are brought before them. 6A - LETTER OF INTENT FOR ANNEXATION (10% PETITION) OF THE WEST HILL8 ANNEXATION AREA INTO THE JURISDICTION OF THE CITY OF BREMERTON, #AB93-235 This is the initial step using the Petition process to annex the area designated as the West Hills Annexation Area into the City of Bremerton. According to the state statutes (RCW 35.13,125), the Council is to determine: Whether the City will accept, reject, or geographically modify the proposed annexation area; Whether it will require the simultaneous adoption of a comprehensive plan and land use designations for the area; and Whether it will require the assumption of all or any portion of existing City indebtedness by the area to be annexed. Terrie O,Neil, Municipal Services Coordinator, stated the City has received a certified letter of intent from the West Hills area. TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 6 of 21 The letter signifies the interest of a property owner, in that area, to annex that property into the jurisdictional boundary of the City of Bremerton. The City Council, upon receipt of this letter, must by State Statute take some action as noted in the summary statement. At the time they received the letter of intent from Chuck Hazelwood for his properties in that area, she developed an address list of all properties in the general vicinity of Mr. Hazelwood's property and sent a letter to everyone on that list. The map included in the Agenda Packet reflects the area that she feels has the strongest interest and meets the criteria set forth by the State. The second consideration is whether or not to require the simultaneous adopting of a Comprehensive Land Use Plan. This plan would give administrative zoning for the area should it be annexed into the City. In this case, the City has already completed that work and adopted a Land Use Plan and Pre-annexation zoning for that area. That plan was scrutinized by the Planning Commission and adopted by the City Council in February of 1990 under Resolution #2287. Copies of that plan are available through the City Clerk. Lastly, in considering whether or not the area should assume proportional share of the City's indebtedness historically the City has always required areas annexing into the City to assume those existing debts because the taxpayers coming into the City would benefit from the bonds that were passed. Current.ly, the City has three outstanding General Obligation Bonds, two for fire issues approved in 1979 and 1991; and a Library Bond. The Fire Bonds were used to purchase and maintain firefighting equipment and would benefit the subject area. The Library assessment was also passed by the County residents and they would just continue paying that as City residents rather than Country residents. In order for Council to consider the impacts for annexing this area into the City, the following statistics are offered: the valuation of the area is approximately $10,250,000; approximately 170 parcels of land and 117 separate owners with 126 homes. The approximate population of the area is about 300-350 people and the area in acres is 70 acres of partially developed land. Maps showing the zoning, streets, sewer and water, which are provided by the City, are attached to the West Hills Plan. Mr. Collins questioned what happens to the political subdivisions, i.e., precincts, when an annexation takes place? Kathleen McCluskey, City Clerk, explained what the County does initially and would do with this area is dependent upon the layout of the precincts. They would either establish new City precincts or if it is adjacent to City property they will absorb as much of the population as they can into existing precincts. If the annexation TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 7 of 21 area was huge, they would have to re-precinct everything. For the most part, the County has been able to distribute them into adjacent precincts. In one instance they actually created some new precincts. Mr. Colvin questioned when did the County provide the City with an official reconfiguration of the precincts? Ms. 'McCluskey stated the County realigned precincts/legislative/ congressional districts after the last census and provided the City with that data. They did that so that the existing City districts were not disturbed, however, next year when the City starts the redistricting process, it is likely that precincts will be upset to some degree. Robert Ackerman, 3706 Arsenal Way, stated he felt the City was annexing a lot of properties, but not increasing the number of parks. He was not real sure of the boundaries of the proposed annexation area. Ms. O,Neil explained the original area they looked at was the entire West Hills area (properties west of Highway #3, including West Hills Honda, City's sewer treatment plant and everything west to Union Street traveling almost to Sun Fjord. The area that is being proposed encompasses the area from Oyster Bay Avenue west and from the sewer treatment plant and up northern to the existing City limit lines. She did receive a number of calls from people living in the Oyster Bay Avenue East area and they have been excluded from this proposal. Letters will be sent out to people, who were in the areas that she surveyed, letting them know that they have been excluded from this proposal. Mr. Ackerman noted some of his friends in the proposed annex area never received a letter from the City so they would not have an opportunity to voice their concerns. He questioned if this issue would be settled during this meeting? President Fitz assured Mr. Ackerman that this is just the beginning of the process. Mr. Johnson questioned the logic for not going all the way out to the freeway? Ms. O,Neil explained the City has a 10% letter of intent from Chuck Hazelwood for $1.5 million dollars worth of property and approximately four million dollars worth of Outside Utility Agreements, giving the City approximately five million dollars worth of property valuation. She stressed the annexation area may still have to be reduced since what she proposed is the largest area that the City would be able to annex under this particular process. Mr. Hazelwood wants to annex his property, which he conveyed to the City through his Letter of Intent, now the City must act on that request. She received letters and calls from other property owners indicating that they were not interested in annexing at this time. She would not have had enough signatures even if everyone in that small area Mr. Johnson referenced had signed to leverage that area into the annex process. Mr. Johnson stated he felt it was dumb to break it at the point being recommended. Ms. O,Neil stated it makes a little more sense in #1375 TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 8 of 21 that it connects the sewer treatment plant, which is now a County island, to the City and takes some of the awkwardness out of some of the boundaries. M/S/C/U(Horton/Dawkins) to 1) approve the Notice of Intent; 2) require simultaneous adoption of land use designations for the area as specified in the West Hills Area Plan, adopted February 8, 1990 as a part of the City Comprehensive Plan; and 3) require the area to assume a proportional amount of existing City indebtedness. Mr. Overson requested that someone on the staff provide Mr. Ackerman a copy of the City's Five Year Parks Development plan. 6B - SALE AGREEMENT FOR SURPLUS PARCELS AT WARREN AVENUE & 17TH STREET, AND BROADWAY & 15TH STREET, #AB93-236 Olympic College is interested in purchasing the Warren Avenue shops and a surplus property at Broadway & 15th Street. The Warren Avenue site was declared surplus with the approval of the public works complex on Oyster Bay Avenue which is now under construction. The College is interested in the two parcels to expand its use of the main campus site, including relocating one educational program now separated from the main campus. The combined appraised value is $213,500.00, as indicated in the October 1992 appraisal. Ian Sievers, City Attorney, stated several points were brought up at the pre-Council study session: (1) indemnity clause for hazardous waste and whether or not it will be discernable whether those wastes came from activities before or after. The full indemnity clause is triggered only for activities on the property prior to purchase and possession under the agreement, which results in contamination by hazardous waste as well as discovery and clean up requirements. It was also mentioned that neither of these properties have been advertised for bid sales and Council should add to their motion that bid procedures are waived on the property. For the record, the Administration's position is to encourage central campus growth at Olympia College. The College wants to consolidate their activities using the Warren Avenue site, which is currently zoned Central Bremerton Residential. In reference to the small right-of-way remnant (about 6,000 feet), which is zoned for Parks and Schools, if the City is not interested in maintaining it as a park, then the only feasible buyer would be the College because it is adjacent to that site. If a bid were involved, any bid would have to discount the price for a rezone of some sort of residential non-conforming use. Mrs. Horton questioned if the property located on Broadway had gone through the surplusing process and if it hadn't, would Council need to waive that whole process? Mr. Sievers stated he was not sure, but felt it would be safe to include that waiver. He checked with Carol Dickinson, Development Manager, who had reviewed the sale of the two parcels TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 9 of 21 with the Parks Board, who would address any parks needs for the Broadway site. Mrs. Horton stated the Broadway piece is more like a landscaping strip without out any improvements. Mr. Colvin asked for clarification of the statement: "Seller shall indemnify and hold the Purchaser from and against any and all claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and costs and expenses (including attorney's fees and disbursement) which accrue to or are incurred by the Purchaser on or after conveyance of the property...". Mr. Sievers explained it is a general all encompassing boiler plate phrase that is used in an indemnity clause. It simple means as a prior owner of the property things that have gone on the property up to the point of transfer, which may have created some contamination with hazardous waste, will be the City's responsibility and the City will indemnify them for any claims brought by government entities or private parties to clean up those wastes. The current state of the law now allows that a purchaser, who is an innocent purchaser after studying the history of the property and has no reason to believe there are hazardous conditions, is exempt from liability under State and Federal law. What the City is doing is conceding that it will be the City's problem and liability. Included in the agreement is a process for allowing the City to go on and find the most economical and expeditious way to clean up the site, even if discovered at the point of transfer of the property. Mr. Colvin questioned if the City was liable in perpetuity on that site? Mr. Sievers stated one thing the City is not doing is admitting liability to other parties. All that is being done is telling this particular purchaser that the City will hold him harmless in covering costs or claims against him. Under clean up laws, there are lots of other potentially liable parties, so the City may have its own defense of clean up that could be passed on to another party or at least be able to share with other parties that owned or possessed the waste and were operating on the site. President Fitz noted the City did have contaminated soil on that site and did clean up on that project under the supervision of the environmentally concerned agencies. She questioned if that site is now relatively free of contaminates? Mr. Sievers stated following Ecology's guidelines for remedial action, the City has done some excavation test pits and wells to sample both soil contamination and groundwater contamination for the petroleum hydrocarbons, the waste discovered there from the City's past activities. That remedial action will be complete by the end of the year and the test wells will remain in place. The City did reserve the right to continue operating the monitoring wells, which would be required over the long term in Ecology guidelines. The City addressed the problem, got it under control and it should not interfere with the sale. TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 10 of 21 Mr. Overson asked for a better definition of the sites proposed. Mr. Sievers pointed out the maps in the Agenda packet and described the specific areas. Mr. Overson raised the issue of whether or not the City followed the proper process for surplusing these sites and if they had not, then steps should be taken to correct that situation. Mr. Johnson expressed concern that the appraisal value was a year old and questioned if real estate prices had gone up or down over the past year? He expected they may have gone up. Mrs. Horton pointed out recent statistics have shown the length of time houses are now on the market has gone up dramatically the past 6-8 months over what it was prior to that time. Mr. Johnson stated he would like to know what Olympic College was up to considering earlier discussions how students couldn't walk across the street from a parking area to the campus area. It concerned him that the College appeared to not be buying up houses that are closer to the College in order to expand. Mrs. Horton reassured Mr. Johnson the College has purchased some houses near the College campus. The College desires to move the automotive class room facilities currently located on Callow Avenue to the "pink" building. However, to accomplish their goal will require a rezone of the subject site. Mr. Sievers stated since the Warren Avenue shop buildings have been vacant for a year, they may acquire some non-conforming rights since it is similar to what was previously housed in that facility. #2108 President Firm pointed out the benefit to the City to keep Olympic College in Bremerton considering the fact that they are being courted by areas, such as shelton, Poulsbo as well as other places. Mrs. Horton noted the classroom the College is proposing to move onto the subject site is not presently on campus and moving off, but rather bringing it closer to the primary campus grounds. In terms of rotraining our community, she felt this was something that the City needed to courage. Mr. Neville pointed out residents in his district are not objecting about locating the automotive classroom on the subject site, but they do hope to continue a good working relationship with the college. He did have a problem over zoning of the site due to the Campus Evergreen Plan showing the site as residential. He also wonders how the students will "make it across the street" now when they couldn't the year before. Public Comment - none. M/S/C(Horton/Dawkins) to waive the standard surplusing procedure for the parcel on Broadway and 15th Street and that the bid process be waived on both parcels and to approve passage of the Real Estate TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 11 of 21 Purchase Agreement; $60,000 will be retained out of the sale proceeds to be used as follows: $31,350.00 to pay off the Promissory Note to the Utility, $28,640 placed in the Facility Budget as a line item to be used to move the SIU office. Any unspent funds will be deposited back into the Accumulative Reserve fund. Mr. Johnson questioned where the Police personnel being displaced in this transaction will be located and how will their move be funded? He suggested retaining a portion of the proceeds from the sale to facilitate relocating the Police personnel. Mrs. Horton noted the Public Works and Utilities Director will handle the relocation process. Kathleen McCluskey stated there has not been any estimates made as to cost of moving SIU personnel. There has been some discussion on possible locations, however, no decision has been made and they are awaiting a response to Mayor- Elect Horton following her review. To her knowledge no funds have been budgeted for that move, however, she doubted it would be a costly move since it is such a small office. Mrs. Horton stated she would amend her motion to include the retention of $60,000 of the sale proceeds to be used to pay of $31,350 to the Utility Department and $28,650 deposited in the Facility budget to cover the cost of moving the SIU office and any unspent funds will be deposited in the Accumulative Reserve fund. Vote on Motion: In Favor: Collins, Dawkins, Colvin, Johnson, Neville, Horton, Fitz Opposed: Overson Motion carried. 7A - ORDINANCE (FIRST READING) ADOPTING THE 1994 FISCAL BUDGET, #AB93-237 Sets forth the authorized limits for the 1994 Fiscal Year Budget for the City of Bremerton. The proposed ordinance will adopt the Mayor's 1994 Budget as modified by the City Council. Passage of a budget ordinance is required by RCW 35.33.075. Rich Hanna, City Treasurer, stated the Mayor, staff and City Council had met a number of times in Study Sessions wherein the Budget has been presented to the Council page-by-page. Following that process, Council met in Study Sessions to deliberate the changes, which they desired to make to the preliminary budget as it was presented by the Administration. Those changes have been incorporated into Council's document through the handouts provided by his office since that time. The brevity of the Ordinance is indicative of the fact that by reference a fairly substantial document is being adopted and represents a well throughout operating plan for the financial operations for the City for 1994. Mr. Hanna pointed out one significant item is still being worked #2499 TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 12 of 21 through both by the City Council and staff. Mr. Colvin questioned by what percent did the budget increase over the current year? Mr. Hanna stated the total budget increased by 5.5% over 1993 level. president Fitz emphasized this is a "hold-the-line" budget with no new programs and very little included for the hiring process. Mr. Overson stated staff and Council worked very well together in the budget sessions having good discussions and the level of service is staying the same if not increasing in some areas. He believes the interests of the City are being very well taken care of given the limitation of funds. Public comment - none. M/S/C(Johnson/Colvin) to approve Ordinance on first reading, adopting the financial budget for the several funds of the City of Bremerton for the fiscal year 1994 and appropriating the amounts set forth in each budget to each fund in accordance with RCW 35.33,075. Vote on motion: In Favor: Overson, Horton, Fitz, Dawkins, Colvin, Johnson Opposed: Neville, Collins Motion carried. 8A - CONTINUED PUBLIC HEARING: WEST KITSAP LAKE ROAD SEWER UTILITY LOCAL IMPROVEMENT DISTRICT (U.L.I.D.), #AB93-218 The City Engineer has received a petition signed by a majority of the property owners within the West Kitsap Lake Road Sewer Utility Local Improvement District (ULID) boundary requesting sewer improvements. Section 35.43,125 RCW requires a public hearing be held on the creation of a proposed ULID that is initiated by petition. The City Council meeting is the public hearing. The total estimated project cost is $625.000. In working with the property owners supporting this project, it was apparent that they understood the City would provide $300,000 toward the project completion. This was evidenced by handouts distributed at public meetings. A search of the record shows no formal City Council authorization to provide the funding. The estimated cost per lot with the City contribution is $4,200, while the estimated cost per lot without the City contribution is $8,000. Pursuant to the petition, the City Council is requested to take action on initiating the ULID and to provide a City contribution toward the project. The options available to the City Council are: TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 13 of 21 1. Direct the City Engineer to proceed with formation of the West Kitsap Lake Road Sewer ULID and authorize a City contribution in the amount of $300,000 toward the project. Possible funding sources are the Wastewater Utility Fund and the General Fund. 2. Reject the petitions to proceed with formation of the West Kitsap Lake Sewer ULID because a City contribution of $300,000 is not authorized by Council, yet was assumed by the signing property owners. The petition should be recirculated with the understanding that the City will not contribute $300,000. 3. Proceed with formation of the West Kitsap Lake Road Sewer ULID and not approve the City contribution. However, this is not fair to the property owners who signed the petition assuming the contribution, and should not be considered. The Public Works and Utilities Department staff recommend Option Number 2 above. An impression was made that the City would contribute $300,000 toward the project, yet it was not formally approved by the City Council. With the current City commitment to reducing the combined storm overflows, reducing odors at the Wastewater Treatment Plant, and maintaining and operating the existing system, Wastewater Utility Funds are not available to provide $300,000 to this project. Likewise, the City's General Fund is not able'to support a $300,000 City contribution toward the project. Staff supports this project, but cannot support a $300,000 City contribution. Therefore, the petition should be re-circulated reflecting the lack of City contribution. Randy Witt, City Engineer, stated as previously discussed, the City received the petitions and did validate them. The issue before Council is accepting the petitions and forming the district. As part of that, there was discussion that the total cost of the project is in the area of $625,000. In working with the property owners supporting the project, they understood the City would provide $300,000 towards the project, which has been evidenced by the handouts from the City and a letter penned by Mr. Witt. They were unsuccessful in their search of the records to determine that Council had given prior approval for expenditure of $300,000 on this proposed ULID. Council has before them two questions: (1) do they want to spend $300,000 of City funds on the proposed project; (2) does the City wish to accept the petitions and form the ULID? He noted there are two people in the audience, who were not present at the prior hearing, and would like the opportunity to speak on this issue. TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 14 of 21 President Fitz pointed out at the end of the previous hearing the discussion had been closed to just the Council members, however, she felt it was appropriate to allow people, who were not at the previous hearing, to comment during this discussion. Alice and David Viera, 4847 NW Leber Lane, spoke in opposition of this proposal. There concerns are as follows: (1) feel they should be excluded from the created ULID district because they do not feel a part of Bremerton, their house fronts on Leber Lane, which is in the County, and they have a berm house. (2) If Sewer line is put in place, it will be at "roof" level. (3) Too costly for them to join in the ULID. (4) Their septic system does not drain into Kitsap Lake, (5) Their septic system is only 6-7 years old. (6)They are not served by City Police or City Fire Departments. (7) They feel City's sewer treatment plant does not handle well the current load of users. (S) Bob Griffith, their neighbor joined in the petition because he has problems with his septic system and feels the lake should be saved from sewer drainage. If Mr. Griffith receives City sewer service he must obtain an easement across their land, which they do not intent to grant. Mr. Witt provided a map showing the location of Mr. Griffith's property and the Viera's property. The proposed project would expand the sewer line up to Mr. Griffith's property. There is a ridge in that area and the creek tends to flow in that direction breaking the drainage basin. The Viera's did bring out the fact that there property does not drain into Kitsap Lake and that is supported by the information documented on the map. The petition was amended to add this area before the signatures were collected at the request of Mr. Griffith. The Viera's home is a unique home, however, the proposed sewer would not run over the roof of their house. The proposed design would allow Mr. Griffith to have a pump station and a two inch line, with the sewer line would be located around the Viera's house, but at some point the sewer line would be higher than their house. It is not uncommon to have property on the lake side pump up to the sewer line and West Kitsap Lake Drive will be in a similar situation, however, those homes are not bermed. Technically, it is possible to add Mr. Griffith and the Vieras to the system by pumping up to the sewer line like they are doing for a number of other properties. He acknowledge the Vieras are in a different drainage basin. Mr. Overson stated assuming this proposal goes forward the system would be installed. He questioned if the connect up policy is to require everyone to hook up as the sewer is available to them or do they connect up on a voluntary basis? Mr. Witt explained the ordinance reads that the only mandatory connections are those dictated by the Health Officer. Mr. Overson stated the system development does hinge on the support of all the people within the identified area. He understand that the long term intent, TAPE #1156 City Council Reg. Mtg. Minutes December 8, 1993 Page 15 of 21 particular with what is happening in the County with the requirement for more stringent controls on septic, is that everyone will ultimately be on the sewer. Mr. Witt stated Mr. Overson is correct, with the sewer in place the Health Officer will no longer allow people to update their sewers, but rather require them to hook up to the sewer. TAPE #1157 Mr. Overson questioned if the option of burying the sewer line deeply in order to have a gravity feed was available? Mr. Witt stated it is not one he would recommend nor would it benefit the Griffith's or Vieras' properties. They did study various ways to install the sewer line and what they are proposing is the most economical method. Mr. Colllns questioned if Mr. Griffith and the Vieras are included in the ULID area and it is approved, will they be financially responsible whether or not they hook up to the system? Mr. Witt stated yes, everyone in the ULID area will be assessed their fair share of the improvements.. President Fitz asked Mr. Witt to respond to the comment that the City's sewer treatment plant was not sufficient to handle the added users. Mr. Witt stated the City's sewer treatment plant has adequate capacities to serve this project. Mrs. Horton questioned if Mr. Griffith's intention is to hook up to the sewer system as soon as it is available? Mr. Witt stated it was his understanding through discussions with Mr. Lefcoski, that it is Mr. Griffith's desire to hook up to the sewer when available. Mr. Colvin questioned to what degree has contamination to Kitsap Lake been addressed. Mr. Witt stated overall Kitsap Lake was studied in 1982 by Parametrix, Inc., and the outcome of that report was the lake was degrading, but isn't at a point of crisis at this time. The report recommended that sewers be installed around the lake along with other improvements. In 1992-93 the property owners asked the County to again look at the lake, which they did through sampling and they found some degradation, but not enough to call it a crisis situation. Robert ackerman questioned if the City would be paying for all the pump stations? Mr. Montgomery, 605 N. Cambrian Avenue, stated he had no objection to sewers being built, however, he objected to the City contributing $300,000 towards the project. City residents are already paying more than they should be for sewers. Jack Lefcoski, Kitsap Lake Road, reminded Council members he was representing 78 property owners. He was of the opinion the Viegas' TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 16 of 21 home was not a full berm house and running a sewer line as proposed past their residence should not cause them any problems. Mr. Griffith and his wife are both elderly and thinking about selling their home, however, because of drain field problems he doubts that anyone will buy it. Mr. Griffith feels he would either have to install a new septic system or be hooked up to a sewer line in order to sell his property. It is geographically possible for Mr. Griffith, if he comes on line prior to the Vieras, to dig a ditch that could house both discharge lines. Such an arrangement would be allowed by the City. Further more, Mr. Griffith has offered to pay for the cost of digging such a ditch. Mr. Lefcoski agreed that the Vieras are not on the Kitsap Lake watershed, however, their drainage flows into Kitsap Creek, which is the outlet of Kitsap Lake and their pollutants are flowing into Chico. Mr. Lefcoski explained how the Vieras and Mr. Griffith were included in the ULID boundary during a meeting of the interested parties involved in this proposal. It was determined, at that time, to include all City residents in that area, and Mr. Griffith wanted to be included and the Vieras did not want to be included. The City Limit boundary was established three years ago and the Vieras became residents in that area only one year ago. He referenced a recent newspaper article indicating the State is bringing on some new septic tank and drain field requirements. The proposed ULID covers an older part of the lake and most of the drain field and tanks on the older side are between their homes and the lake (on the downhill side). Todays rules will not allow such placement...they must be 100 feet back away from the water. Another "today" rule that did not apply when the older drain fields were installed is the requirement to have an area reserved as a backup. He personally questioned whether anyone on the west side of the lake has an area for a reserve. Since he has a double lot, he may have the necessary reserve area, but he knows of no others, which means if their drain field fails they have no place to expand. The Health Department doesn't know what to do to correct the problems. He re-emphasized at the time Bill Duffy, City Utility Director, presented this proposal to the Council at a Study Session, the intention of protecting and saving the lake was conveyed. He believes the lake is losing the fight against pollution. In April of 1993, the Health District took water samples from the lake and three were well above State minimum requirements. The presence of E-coli in the lake is not in the best interest of the residents and users of Kitsap Lake. There is no way for E-coli to correct itself and what are the ramifications for the City if someone using the lake becomes ill from E-coli and brings a lawsuit against the City? He believes the City would have no defense in that case since they had prior knowledge of the presence of E-coli. He believes the time is right to stop further pollution into the lake. Sixty five percent of the West Kitsap TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 17 of 21 Lake area have said they want sewers and that does not mean that everyone can afford it, but they acknowledge it needs to be done. He emphasized the lake will not fix itself and we, the people, have to fix it. Council already made a commitment to the project and $60,000 has already been spent on the engineering design, leaving a $240,000 balance. He would standby for any questions Council may have. Clemmeth E. Frost stated he believed the proposed sewer and near completed design is great and if it is done so that the cost can be amortized over 50 years, it will not hurt anyone to do that. The same rules apply if someone has a good septic tank and it is working...you don't have to hook up until that septic system fails. He urged Council to either approve the project now or turn it down...costs escalate the longer you wait. Hal Reum, West Kitsap Lake Road, stated he and Mr. Lefcoski, in good faith, went out and knocked on doors talking people into accepting the proposal. From that effort, they obtained 65% participation and 35% were not interested even after hearing the proposal. They undertook this task based on information they received from City officials and City engineers that the City would be contributing $300,000. He did not want to have to go back to those same people and tell them the City isn't funding the $300,000. Mr. Witt stated the City Council does have the authority to change the boundaries of the proposed ULID area and if they wished to delete the two properties, Griffith and Vieras, an additional piece of property would also have to be deleted in order to keep continuous boundaries. Even if there is a deletion of boundary area, there will still be a majority number of petitioners to form the ULID. President Fitz questioned if any deletion would increase the cost for the other residents? Mr. Witt stated there would be a slight increase, but the construction cost would not decrease. Mr. Neville questioned what about the other people in the proposed area who do not want to be part of the project, will they also ask to be excluded? Mr. Wltt stated no other individuals have asked to be excluded and once Council finishes the hearing he did not think anyone else could make that request. Robert Ackerman noted other lakes in the Puget Sound area have been closed due to pollution, however, they have not been sued by anyone who became ill after swimming in the water. Mr. Johnson stated Kitsap County has never done anything to study Kitsap Lake nor to keep it clean. The Health Department did take some samples, which he felt was not done in the best manner. The Department Of Ecology did do a follow up study in 1992, working TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 18 of 21 with neighborhood residence and was published as a follow on report to the study conducted by Parametrix, Inc., and Brown and Caldwell in 1983. Urban lakes don't have to degrade, in fact KitsapLake is doing pretty good, even with the septic tanks, but septic pollution is one of the major contributors to fertilizing the weeds that can choke the lake. He attended the meetings where residents were told by the Utility staff and contractors that the City would do a $300,000 match. That meeting took place right after the area was annexed and he felt there is a real issue of integrity and creditability. The City of Bremerton does look to annex people in the future and he believed it would be detrimental to the City if this proposal is denied for $300,000 out of the Utility budget. There is no policy nor requirement for the City to make such an approval other than what was done in other LID processes, like the 4Th Street LID project. He believes the promise was made by the Utility because they were confident they could obtain a grant and they didn't get one and are looking for an excuse to back out. The reason for the excuse is not that Council didn't approve it, but they would rather spend the money somewhere else. Kitsap Lake is park property and funds are spent on other parks throughout the City and he believes there is an obligation to keep the lake open for swimming, fishing, boating. He encouraged Council to go ahead and fund this project out of the Utility budget. He also believes it will be inevitable that the City will have to sewer the lake and within the 10 next years he would expect the Department Of Ecology to mandate it. He emphasized at the current time interest rates are down and it would be long-term debt. Mr. Collins stated the minutes of the November 10th City Council meeting reflect his feelings on this matter. He agreed with the basic thought of the ULID, but he could not buy into the City paying one half the cost. He emphasized the cost of other sewer utility projects and the cost of the lawsuit settlement will have to be borne by all the residents. He did not feel it was fair that all citizens pay for the West Kitsap Lake area improvement. If this proposal is approved it will set a precedent. Mrs. Horton stated she firmly believes a person's word should be the last say and government over the last several years has really received a black eye because of lack of creditability. She understands the position that other people in the City should not have to pay for the west side of Kitsap Lake, but she also believes it was interpreted to the people in that area the City would commit the $300,000. At the referenced Study Session, she did not hear one Council member object over the proposal to contribute $300,000 to the project. Whether the paperwork followed or not, she believes the City Council gave agreement to fund the $300,000 and she will vote that way. #1352 TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 19 of 21 Mr. Overson stated it is significantly beneficial to the City to support this project. No only will we get the facility in to support this development, but we can then also add in the Navy (Camp McKean) and other facilities beyond those facilities. The City's contribution of $300,000 is worth it towards protecting the lake. He emphasized the entire City will be paying for the Callow Avenue Basin rebuild and Warren Avenue Basin rebuilt, the entire City should pay for the preservation of Kitsap Lake. Mr. Johnson stated there are number of lots, 15-20, that are currently undeveloped in the subject area that will not be developed unless sewers are made available. Building on those lots will provide future income to the City. M/S/C(Horton/Johnson) the City Council directs the City Engineer to proceed with the formation of the West Kitsap Lake Sewer ULID and authorize the City contribution in the amount of $300,000, towards the project from the Wastewater Fund. Mr. Colvin stated he believed the City would be remiss if they didn't do what they could to stop polluting Kitsap Lake. He believes the lake belongs to all Bremerton residents. He pointed out the West Kitsap Lake residents would be paying in on the other sewer projects as well as the lawsuit settlement. Mr. Collins asked if the motion includes the source of the $300,0007 Mrs. Horton stated no. Mr. Collins asked if a source could be identified? President Fitz explained when this issue was discussed in Study Session it was suggested to include it along with other sewer related costs that must be financed through bonds. Mr. Johnson stated he believed the City Treasurer's answer might be that the cheapest way to do a debt issuance would be to combine it with a larger one because the little ones cost a lot per dollar just to process. Kathleen McCluskey, City Clerk, stated the specifics as to how to fund it is something that needs to be worked out, however, she recommended identifying the source of funding to be in the Utility or the General Fund. If the Wastewater Treatment Fund is identified, they will go and determine how best to do that. Mrs. Horton stated she will identify such in her motion. Mr. Witt stated his discussions with the City Treasurer, in relation to the Wastewater Fund, was the possibility of funding the project out of possible savings from other areas or increasing the bond debt. Mr. Johnson emphasized nothing should preclude pursuing grants. He asked the maker of the motion if she would add "'the Wastewater Fund or such successor fund that may be formed with potential reorganizations of the Utility". Mr. Overson questioned was that something that would be done as part of any reorganization? Over the next few years the City will be doing $30,000,000 worth of work in the facility. Mrs. Horton pointed out all that was being done #1670 TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 20 of 21 was giving staff direction. Mr. Johnson suggested the wording "a Utility fund" because he does not know in the next few months what the names of those funds will be. Mr. Colvin questioned if the Vieras and Griffiths were included or is there some exception that could be made because of their particular position? President Fitz pointed out Mrs. Horton did not make that a part of her motion. Mr. Colvin questioned if Mrs. Horton would consider excluding the Vieras because they are not in the Kitsap Lake Basin? Mrs. Horton stated the only way she would consider that as part of her motion is if she tagged on if at any time those parcels did join up they would share in latecomers fees and recoup all of the same cost as the other residents. She preferred including all the people in the ULID designated area. President Fitz asked the City Attorney if there was a way to exclude an owner? Mr. Sievers stated Council could exclude the two parties identified by readjusting the boundaries proposed by the petition. Mrs. Horton re-emphasized her motion includes the whole ULID portion as presented. M/S/F(Colvin/Collins) an amendment to the motion to exclude No. 1 and No. 2 from this proposal based on hardship reasons and if at such time those parcels will need to hook up they will be assessed latecomers fees on an equitable basis towards the total cost. Mr. Lefcoskl stated he respects and admired Mr. Colvin's efforts, but what he proposes with his motion is creating a monster because Mr. Griffith would become an island and Mrs. Viera did state she would not grant Mr. Griffith an easement to get across their property. He suggested adding to Mr. Colvin's amendment "if the Vieras' will give Mr. Griffith an easement". President Fitz asked the City Attorney if that was a private property right? Mr. Sievers stated he thought Council was proposing to adjust the ULID boundary. Vote on amended motion: In favor: Colvin Opposed: Johnson, Overson, Neville, Horton, Collins, Fitz Motion failed. Vote on main motion: In favor: Johnson, Overson, Neville, Horton, Colvin, Fitz Opposed: Collins Motion carried. TAPE #1157 City Council Reg. Mtg. Minutes December 8, 1993 Page 21 of 21 With no further business meeting adjourned at 8:10. KATHLEEN L. McCLUSKEY, City Clerk EILEEN FITZ, Council President City of Bremerton KLM/EF/me cc: Normal Distribution File/Vault