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HomeMy WebLinkAbout10/06/93TAPE #1139 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES OCTOBER 6, 1993 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, October 6, 1993, at 5:30 P.M., with Council President Eileen Fitz presiding. Council members present were Richard Neville, Lynn Horton, Hank Waibel, C.R. "Tiny" Collins, Morrie Dawkins, Russ Johnson, Lon Overson, and Al Colvin. Also present were Acting City Attorney Leila Mills 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 the First Christian Church. CONSENT AGENDA A. Minutes of Meeting -- September 22, 1993 #AB93-193 #0021 M/S/C/U(Waibel/Horton) to approve the Consent Agenda as presented. CLAIMS/WARRANT 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. #0036 M/S/C/U(Colvin/Dawkins) October 6, 1993, the Council does approve for payment those vouchers included and further described as follows: 169874, 169895 through 170063 in the total amount of $369,785.63; and Regular Payroll for the period ending September 30, 1993, in the amount of $643,064.78. COUNCIL MEMBER REPORTS Mrs. Horton explained she was absent from the previous Council meeting due to illness and was now feeling much better. She requested Council President Fitz and Mayor Mentor consider scheduling a time on the next Council meeting agenda for Henry Mincey, of Safe Streets, to comment on his 30-day report that was'to be provided to Council. She noted Council members did receive a draft of that report, however, she felt it was important to have Mr. Mincey come and meet the public and allow Council the opportunity to discuss that report. President Fitz reported she met with Mr. Mincey about a week ago and discussed with him when it would be appropriate for TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 2 of 19 Council. She was not sure if Council desired setting a Study Session with Mr. Mincey or to have his report during a Council meeting. Mrs. Horton stated she felt Mr. Mincey needed to come before Council and to meet the public in a public forum. President Fitz stated Mr. Mincey is ready to make such a presentation. Mr. Collins stated he took his hat off to Sheriff Pat Jones for taking on some drug problems in Bremerton as part of a major drug bust over the weekend. He also noted that when one looks at the average age of the people picked up in that drug bust it appears they aren't "kids". Mr. Dawkins reported he spent the past weekend in Vancouver, B.C., and had an opportunity to view what had been done with the waterfront in that area. It surprised him that there was activity going on almost all night in the waterfront area and he felt part of the reason for such use had to do with the availability of ferry service to and from the commercial areas. He believed Bremerton could have just as much success as Vancouver when expanded ferry services is provided between Bremerton and Seattle. Mr. Colvin related an incident that happened when Governor Lowry attended the Martin Luther King Memorial Fund Constitutions Day event - the Governor remembered Al from his very early political activity campaigning for Mr. Lowry when he was a young man that almost got him in trouble with the federal government through restrictions of the HATCH ACT. He announced the next District # 1 Coalition meeting is scheduled for October 28, 7:00 P.M., at the Sheridan Park Recreation Center. The agenda for that meeting will include presentations by both Manorial candidates, Larry Stone will present the "Pro" side of Proposition # 1 and the opposite view on that issue will be given by Louis Soriano. Lastly, when he watched on television what was happening in Russia recently he recognized that the area where the conflict was happening was where he had visited when he accompanied Secretary Of State Ralph Munro on a tour of that country. Mrs. Fitz stated she was pleased and excited, about the drug bust that happened in Bremerton, particularly because of the impact the Drug Free Zones, which were adopted and posted, will have of adding on two years to penalties given to those individuals found guilty of dealing drugs within those areas. She again commended the students, faculty, Bremerton School Board and School District for implementing the Drug Free Zones. She pointed out Bremerton is the only school district in the County that has Drug Free Zones. She encouraged other TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 3 of 19 School Districts...Bainbridge Island, North Kitsap, Central Kitsap and South Kitsap to please get going on the implementation of Drug Free Zones at their schools. She also noted the age, of the people who were picked up and she felt one had to say this is not a problem of youth, but rather a problem of society. She also believes that the older people involved were probably responsible for the organization of drug dealing in our drug society. She commended all law enforcement units that were involved in the recent drug bust and she hoped the message is out. PUBLIC RECOGNITION Mayor Louis Mentor stated he hoped Councilman Collins' hat was also off to Bremerton's Police Officers, who were involved in the weekend drug bust activity. WESTNET is comprised of law enforcement officers from Kitsap County, Jefferson County, Port Orchard, Poulsbo, Bainbridge Island and Bremerton and all of those areas were represented in the recent drug raid. Mayor Mentor noted it takes cooperation and everyone working together to make these things happen. Mayor Mentor read the following Proclamation: October 16 and 17, 1993, as Puget Sound Days In Bremerton; Organized by People For Puget Sound. Mayor Mentor extended congratulations to Joan Soriano, newly installed President of the Bremerton Area Chamber Of Commerce, and Lee Good, newly installed President of the Silverdale Chamber Of Commerce. The Combined Federal Campaign - United Way Campaign held a large function on the boardwalk this past weekend. Mayor Mentor shared a letter he received from Treasurer House, Inc., in which they thanked everyone they dealt with at the City for their friendliness and being informative and extremely helpful. They believe their business should be part of the community and their opening has been a great success. Along with their letter they. enclosed a check made out the City of Bremerton to be spent on whatever the City decides. Bernie Forte, POWER, Inc. 920 Park Avenue, stated his hat is on and his hat is off to what happened this weekend regarding the drug bust. He applauded the law enforcement agencies involved in that activity and feels that now we are finally getting down to business. He stressed the pressure can't stop there and the community still has to do their part in letting the Police Department know of any illegal activity within their neighborhoods. In regard to the Safe Streets program, he met with the program director Henry Mincey along with members of the community and he is pleased with the direction TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 4 of 19 that program is taking. He applauded Mayor Mentor for bringing that program to Bremerton. He noted Robert Boddie is training under Mr. Mincey to become better acquainted with the Safe Streets Program. He announced POWER's next meeting is October 7, 7:00 P.M., at Mt. Zion Missionary Baptist Church, which will be the fourth round - "Bremerton Safe Streets". Discussion at that meeting will include: programs, jobs, counseling, education and love. Topics to be covered are: gangs, racism, violence and harassment. He emphasized that he has been advocating that private businesses and community organizations network together creating internship type programs for youth. He and his wife own a business and they have stepped forward and initiated an internship position in their firm. The age bracket of youth being targeted for the internship programs is 13-25. He has created an in-classroom training program ,,Labor-To-Management" of a housekeeping business, which will be starting in early November. Subjects to be explored in that training program include: laundry processing, ironing, carpet cleaning, packing, dish washing, cleaning and indoor/outdoor catering process. Mr. Forte emphasized this program is his part in doing what he is advocating to other businesses. Gordy Byrd, P.O. Box 930, briefly reviewed the courses he is currently involved with at Olympic College. He gave an update report on his Byrd's Nest project - $15,273.25. He announced that Cross Roads Community Church is putting on a "Praise The Lord" service and three local organizations will benefit from the free will offering taken at that event, one of which is the "Byrd's Nest". Patrick Hirsch, 3030 1/2 Marine Drive, TCI Access Manager, reported they will be airing debates starting Friday, October 8, 6:00 P.M., and rebroadcasting several times throughout the month. Starting on October 8th the Mayoral race will be presented from 6:00 - 7:00 P.M., and from approximately 7:15 - 7:45 P.M., District # 3 Council race will be presented. On October 15, 6;00 - 7:00 P.M., theProposition # 1 issue will be debated, followed by District # 7 Council race from 7:15 - 7:45 P.M.. Anyone having questions about the airing dates/times may call TCI - BCAT 377-1658. 6A - APPROVAL TO SUBMIT CITY OF BREMERTON 1994 CDBG BUDGET, Resolution #2444 #AB93-194 The Administration is preparing to apply for 1994 Kitsap County CDBG funds. This resolution signifies City Council general concurrence with the preliminary project list. Not all projects identified in this Agenda Bill will be submitted. Further work prior to submittal will identify strengths and TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 5 of 19 weaknesses and appropriate strategies to assure competitive applications. The Mayor will determine the final application mix and content depending on this further information. Submittal for applications is October 8. Don Pratt, Director Of Community Development, stated he was the senior staff person responsible for listing the possible applications to be submitted. At this time, he could identify some of the applications listed in the Agenda Bill that will not be submitted. Some of the details in the applications are still being worked out and the deadline for submittal is Friday, October 8. Some of the dollar match proposals are not established and are being left to the budget process that is about to commence. He reminded Council that last year Bremerton was the entitlement city and distributed approximately $450,000 through Council's action and decision on who received what funding. Now, as part of the Kitsap County's entitlement program, Bremerton is distributing approximately 1.4 million dollars and the Kitsap Regional Planning Council makes the determination as to who receives what funding. Mrs. Horton questioned a point of possible conflict of interest in that she and President Fitz sit on the Kitsap Regional Council board to approve the final cut of the Block Grant applications and was it appropriate for them to act on this item? Mr. Pratt stated yes, due to the fact this process was not a quasi-judicial proceeding. He believed it would be a political decision for Council President Fitz and Councilman Horton on a value based decision. Mrs. Horton emphasized in years past when Council members served on boards of agencies making application for block grant funds they stepped down from Block Grant proceedings. She again questioned if this was a conflict? Mr. Pratt stressed it is not a legal conflict of interest and any conflict Mrs. Horton might feel is entirely based on her own value. Leila Mills, Acting City Attorney, acknowledged her concurrence in Mr. Pratt's statement on that point. PRELIMINARY LISTING CITY OF BREMERTON 1994 CDBG APPLICATIONS: Campus Neighborhood:Traffic Management Project - will probably be submitted. Mr. Pratt envisioned one intersection impediment, which they define as something that makes a neighborhood street less likely to be used as a by-pass route for computer traffic. They will also tryto find a design and build some barricades at the end of streets, such as is found along the west side of Warren Avenue. He anticipates the ability to raise $25,000 for total cost and match it with $5,000 of City Funds. TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 6 of 19 County - Wide Land - Use Plan And RegulatoryCoordination - will probably be submitted by the Kitsap Regional Planning Council and not by the City of Bremerton/Kitsap County jointly. However, Mr. Pratt wanted to leave this item on the list in case there is a fall back position. The proposal is for $200,000 of block grant funding to make the total project cost $644,000, not $414,187. The $414,187 is the growth management money the City receives and is the total cost of what the City is doing for growth management planning. The specific work program says that Kitsap County and the other cities agree to explore land use consistency within the County and will develop a standard model zoning definition and terms that can be used in the new Zoning Ordinances. What makes this exciting is that they have found something of value to work together on in partnership rather than find disagreement on. South Auto Center Industrial District Enhancement Project - Land Purchase, Environmental Remediation & Sale Of Land - City Council has not had this proposal before them yet and Mr. Pratt believed this application would not be submitted. What this item proposed was to use block grant funds to help clean up several properties in an area the administration proposes to include in Slums and Blight at the City Council level within the next month or two. Smith Cove Environmental Analysis - several properties around Smith Cove and within the City have a common dilemma of having unknown environmental conditions. The unknown quantity frequently can out - value the price of the property. When the property has an unknown negotiated with it, it is virtually blackballed by the development community. What was being attempted with this application was to find a way to use block grant funds to do an environmental analysis of the property just to get the "known" clean up cost so that developers would know what they would have to deal with in order to use it. Mr. Pratt believed Council would see this application back in 1994 as a revolving loan program for environmental issues and properties as a block grant proposal for 1995. Rental Rehab Loan Program - the City currently operates a large amount of money in an owner-occupied rehabilitation program for residential uses. There is still an adequate amount of money left both in loan repayments and new money to offer an owner - occupied program next year equal to or greater than the number of loans made in 1992. What is being proposed is asking for new money to go into a Rental Rehab program, such as the City had 3 - 4 years ago and discontinued. Under this scenario, property owners/landlords would apply for funds TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 7 of 19 to fix up multi - family units that would host moderate income people. Bremerton Accessibility Project - (total cost $59,000/with $6,000 City funds). The proposal provides for elderly or disabled citizens using wheelchairs to these currently inaccessible areas of City facilities: (1) City Hall - 2nd Floor Court Facilities, City Attorney's Office and Personnel Department via wall - mounted wheelchair lift ($18,000); (2) Restroom remodel for 5 - floor office building housing public offices and services, including the Safe Streets Program ($12,000); (3) City Hall - 1st floor Police Department and Civil Service Offices via wall - mounted wheelchair lift (19,000); (4) City Hall - 2nd floor restrooms via remodel or existing restrooms ($8,000); (5) City Hall - City Clerk/Treasurer's Office via counter accessibility ($1,000); (6) City Hall - Municipal Court Office via counter accessibility ($1,000). Mr. Pratt explained this proposal was recommended by the City's Disabilities Committee for block grant funding. Mr. Johnson questioned for clarification if Mr. Pratt's comment of City matching funds at $6,000 was correct rather than the $400 shown in the documentation? Mr. Pratt explained the figure of $400 was increased to $6,000 since the agenda bill was submitted to Council last week. It is proposed to use the 4th Street Construction Fund and General Facilities Fund to provide the matching funds. Wheel Chair Ramps - this project was submitted last year for funding, however, it was not funded. The proposal is to construct wheelchair ramps at intersections around Naval Avenue School and Armen Jahr School at a total project cost of $45,000 and a City match of $4,000. It is proposed to raise the $4,000 from within the City's budget process. 4th Street Amenities - this project was submitted last year and did receive quite a bit of funding from the Block Grant program to help construct the 4th Street project. Some pedestrian amenities were left unfunded: Kiosk ($11,780), clock ($11,056), 12 benches ($12,000) drinking fountain TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 8 of 19 ($7,000), 9 landscaped clay pots ($7,200). This proposal requests funding of $49,036 in block grant funds and the City can show that $428,000 worth of match is already in the street. Vicki Vanneman, Director of Parks and Recreation provided the following commentary. Bremerton Parks Playgrounds Accessibility Project - create "parks for all" at Warren Avenue Play Field, Kiwanis Field, Lions Field, Evergreen Park and East Park. This will include both a new major unit at Warren Avenue Play Field and upgrades in the form of ramps and transfer modules at the other sites. Ms. Vanneman explained originally two applications were suggested: (1) accessibility project at some of the playgrounds throughout the Parks system, will be submitted but it will be reduced to a focus on the Warren Avenue Play Field of major pieces of equipment there to replace the aging ship on the corner of llth and Warren. The technology for the new ramps and transfer modules that can be put onto existing pieces of equipment is very new technology and seems to her to be a better grant for next year once the "bugs" have been worked out. By redefining the focus to Warren Avenue Play Field, the total cost will be reduced significantly and looking at $30-35,000. As mentioned earlier, the details will be worked out between now and 4:00 P.M. on Friday, October 8. And, the City's matching fund amount will also be reduced. Ms. Vanneman emphasizes the Cityts match will be in "work force" from the Parks Department. Expansion Of Evergreen Park - this project was proposing acquisition of some property in proximity to the Evergreen Park site and again that is one that the administration feels may be a year away. With some of the uncertainties in that area as far as property ownership, it was felt delaying that proposal for one year was advisable and at that point they would hope to identify a good quality matching fund source. Mr. Pratt pointed out the proposed resolution just recognizes that this is a good list to make a submittal and the Mayor will submit them by Friday. Mr. Overson questioned what is the list? Mr. Pratt explained Council will be agreeing that submittal of all of the listed projects is appropriate. He will tell Council now which applications will not be submitted with a couple of them being "maybe". Mr. Johnson questioned what if Council wanted to add something to the proposed list? Mr. Pratt stated if Council wished to added something then someone needed to be identified to prepare the application for submittal. Mr. Johnson TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 9 of 19 questioned if Council was to be just a "rubber stamp" or were they suppose to say whether or not they agree with the items listed and those being proposed to not submit at this time? Mr. Pratt stated the Administration has put together the proposed list and are looking to Council to support the proposal as presented. Mr. Johnson questioned the meaning of "support"...approval, disapproval? Mr. Pratt stated approval. Mr. Overson questioned for clarification if Mr. Pratt was asking Council to pre - commit to a $95,000 City Revenue Bond for the South Auto Center Industrial District Enhancement? In his opinion, this was not the process for such action. City staff has been working on this project for many months and if it wasn't ready at this point, then it contains a fatal flaw and should be scratched right now. Mr. Pratt stated the Mayor has determined that application will not be submitted and if Council chooses to drop it from this listing he would encourage such action. Mrs. Horton questioned which applications are to be definitely scratched off the list and which ones are "maybe"? Mr. Pratt stated the following applications will not be submitted: South Auto Center Industrial District Enhancement project, Smith Cove Environmental Analysis, and Expansion of Evergreen Park. Applications that might be submitted are County - wide Land Use Plan and Requlatory Coordination, which most likely will be submitted by the Kitsap Regional Planning Council. Mr. Johnson pointed out he had noted a "maybe" for the Campus Neighborhood application. Mr. Pratt stated the Campus Neighborhood Traffic Management Project will be submitted. Mrs. Horton questioned if she was correct that item # 2 under the Bremerton Accessibility Project was the 4th Street Building? Mr. Pratt stated yes. Mrs. Horton stated she opposed that being on the list because Council has been asking for a facilities plan for that building and has yet to get it even though the building has been in the City's position for at least 2 1/2 years. She did not believe it was wise to spend money "willy nilly" on that building until a definite plan had been developed. Therefore, she recommended removing that item off of the list. She pointed out the Smith Cove project was to be taken off the list, however, she believed there is State funding available to do environmental analysis of property. Lastly, someone asked her recently about the rental'rehab portion because some of these rental properties may in fact be owned by people who are literally multi- millionaires and it was felt that would be inappropriate even though it would be for low income renters. Mr. Pratt explained that was a philosophical issue when the program was dropped several years ago. It was the feeling of the Block TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 10 of 19 Grant office and the Administration that there are adequate funds now to cover the owne - occupied program. It is also felt that the Rental Rehab Program, even though there are philosophical problems with landlords making money off the project, the production they can get out of a rental rehab program is of great value to the City and should not turn its back to that production. We can get a lot more low to moderate income units rehab by using the landlords than we can on a one-by-one owner occupied, so they decided the need to run dual programs. Mrs. Horton stated she felt that was a policy issue that Council needs to take up and not an issue that the Administration zan say "this is our policy". Mr. Colvin questioned if this amounts to subsidizing the landlords? Mr. Pratt explained it amounts to subsidizing low income tenants and there are landlords making money renting apartments to low income tenants. The subsidy is not to the landlord but to the renter. Mrs. Horton stressed she felt that was an issue Council needed to take up as a policy issue and bring in public debate. The Block Grant program is worthwhile and vital to the community and she did not want to do anything that would taint that program in any way. Mr. Pratt encouraged Council to let the grant application go through and to refuse the grant if it is selected for funding. If Council denies the opportunity to make the grant application, then you deny any opportunity for the debate to take place in a constructive manner and that debate may come up as a positive issue. Mr. Dawkins questioned if there wasn't enough people applying or obtaining owner occupied rehab loans? Mr. Pratt stated they do a fair number of owner occupied loans but we never do as many loans as we have funds available. He emphasized it is a very difficult program to make work because typically the low to moderate income owners lack experience in financial matters to qualify enough to put together a public package and it costs the City money to do that work for them. On the other hand, whenever a rental rehab program is operated, there are more applicants that are qualified and ready to go than there is funding available. Again, there is a very high production of low and moderate income housing when we use a rental occupied program. than the owner occupied program. President Fitz questioned how it costs money to have an owner occupied low income person and how it costs the program money to try and help them get financed? Mr. Pratt stated there is a Project Manager in the Block Grant Program whose primary job is to provide financial counseling and advice to people putting together a loan program package. That person sits with the applicants to develop the financial documents, she accompanies them when they visit the bank that provides the partner loan that goes with it, she helps them select a contractor, helps monitor the TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 11 of 19 contract, etc. On the other hand, if a loan is made to an apartment owner, typically they do all the leg work and they have the bank and accounting resources already and the project goes very smooth. President Fitz stated that was a philosophy or policy issue also because if in fact we want to rehab homes in Bremerton and we want low income people to own homes, then her personal feeling was that we need to take the time to assist them through this process. I also think there are probably rental owners who are not millionaires and need some help in keeping up their property. Possibly, the City needs to do a good job of screening those individuals if they in fact can afford to fix up their rental properties. She is concerned about making sure that all the people who own their home and need help in rehab are being serviced. Mr. Pratt stated he believes they are doing as good a job as any other public loan provider and we can't rent all the funds that are available. When the rental/owner program was in place, we didn't have an owner/occupied program. However, when the rental rehab program was dropped, funds were then put into the owner/occupied program. Now, there are funds in the owner/occupied program and it is not an either or situation. Mrs. Horton stated a couple of years ago Council looked at the possibility of developing a program whereby there was seed money to come up with financing for low income people for a down payment on a house, getting them into an owner/occupied situation. Because the City lacked the initial seed money, that program was not implemented. She questioned if block grant funds could be used to provide for down payments for owner/occupied homes for low income people? When Housing Bremerton was developed one of the things targeted was owner occupancy and she would prefer seeing that kind of pool of money rather than rehab rental property when there is such a high preponderance of such properties. Mr. Pratt stated he recalled discussions on helping first time home buyers and the City is involved in a first time home buyers program that is sponsored by Washington State, however, those funds go directly to banks, who operator of the program. He emphasized we frequently use the owner/occupied loans to partner with the first time home buyer and they use the City's loan as part of their equity.to get into the program. Mrs. Horton questioned if $100,000 could be used as seed money for down payment of low income people to become owner/occupied owners? Mr. Pratt stated (1) it is difficult to get low to moderate income people into a loan package situation to not only rehab their loans but to purchase their homes; (2) he honestly did not know the answer to Mrs. Horton question. He suspected from discussions with Ms. Dickinson, Director of the program, that block grant funding cannot go to first time home buyers. TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 12 of 19 Mr. Colvin questioned how much public money will be involved in the rental rehab program? Mr. Pratt explained there is 1.4 million dollars and he is aware of at least two other applicants that are asking for rehab loans funds out of that pool of money. The City's proposal is asking for $100,000. Mr. Johnson stated he wanted to look at the outcome, which is why the rental rehab program was dropped before. When you have run down houses in the City, which does not pencil out-for someone to buy until you throw in the subsidy and then the landlord or potential landlord looks at it and says if I buy this property and get a certain subsidy then he figures out what the rent will be. What happen then is to encourage rentals instead of homeowners and the funds they get to fix it up are generally used to bring properties up to absolute minimum code standards, not necessarily making it a nice looking piece of property. He was in favor of this item when it was brought to the Fiscal and Budget Committee because at that time he was told that any landlord who accepted any of the funds available would have to have a clause in the rental agreement giving the renter an option to buy on a "pay rent with option to buy" basis. Obviously, the gain should be to have home ownership and pride in our communities, which comes from home ownership and not landlords. Mr. Pratt stated they considered it, but felt it is best to accomplish it by providing information on how tenters can become property owners rather than requiring that they become property owners. Mr. Johnson stated then we'll end up with more trashed apartments. Mr. Pratt stated Council was missing a scale .... the proposal is asking for $100,000 to do loans up to $25,000 per unit. This is not the same level of funding that was offered several years ago. The funding requested would probably do 4 - 6 units in 1994. Mr. Johnson noted the apartment owners have been very powerful in the City for many years and he felt it was time to say. no, the emphasis should be with the homeowners. Mr. Pratt stated he and the administration saw the Rental Rehab program as a piece of the overall improvement program for low or moderate income housing. And, to not offer any rental money at all was a void in the program. We have significantly more owner/occupied program than rental/occupied. We have the first time home buyers program that is operated by the State Housing Bond money. We think we need to add a relatively small rental/occupied program and that it provides for a balanced rehab program. Mr. Johnson stated he would rather see Kitsap Regional Planning Council give the money to KCCAP to increase their weatherization program for seniors. Mr. Collins stated the only way he could agree to the Rental i TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 13 of 19 Rehab program, and if it remains in the proposal he will have to disagree with the whole proposal, is if there was some kind of strong teeth whereby the landlord would have to rehab to a veryhigh standard and that there would be constant monitoring so that the landlord kept the property in that same condition. He is aware of three properties that were rehabed with block grant funds previously and over the years allowed to deteriorate to the point they were when the original rehab took place. Mr. Pratt stated he did not think it was impossible to add owner/occupied wording directly and not just tell you we'll do the program. He felt it would be an error in the program to require landlords to sell rental units. Councilman Waibel stepped down from the dias at 6:45 P.M. Mrs. Horton stated she believed she understood Mr. Pratt's position, however, she felt someone had not done their homework on this proposal. She stressed the Administration wants to start up a new program without talking .to Council about how it will operate or to talk philosophically about whether or not the program should be done at all. She would not turn back a grant if it was awarded because it would not look good. She believes the Rental Rehab program was premature and if Mr. Pratt wanted to do such a program, it should have. been brought to Council several months ago. She believed Mr. Pratt was getting a sense that Council did not feel good about this application. Maybe it is a worthy program, but at this point it is a premature program. Hank Waibel, 2341 E. 18th Street, stated his job when he is not a City Councilman is to purchase and rehab homes for people who have cerebral palsy. He is an owner of rental/ occupied properties that are rented by people with cerebral palsy. Without the HUD Block Grant money from the City of Seattle, there would still be 12 people institutionalized rather than living in the community. This program does need to make sure there are all the "bells and whistle"s being talked about. Funds will not be available for such a use unless the City applies for that grant this year. He felt the City should apply for the grant and to then make sure there are some restrictions. Mr. Johnson stated Mr. Waibel may have the answer to the dilemma and that would be to set the rental rehab loan funds aside for improvements for handicapped accessibility for rental properties. Mrs. Horton stated she believes Easter Seals has the same kind of program and applies for Block Grant funding. If they do, she felt the Block Grant Committee would see a redundancy. Mr. Pratt stated there are other active TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 14 of 19 agencies doing such programs and there are agencies that don't do it. Mrs. Horton stated generally when looking at Block Grant applications you want to look at programs that are not redundancies and if this is the same kind of program as Easter Seals application, she felt it was a waste of paperwork. Mr. Pratt stated there is also a context of where we are in this. Although they have tried to keep track of all those agencies, unless Council authorizes submittal of the application the City won't have the option of finding out who is doing what later on. Mr. Johnson stated if the Rental Rehab program can't be narrowed down to something special, he would just as soon lend his support to doing an environmental study on Smith Cove. Mr. Pratt stated he may have erred in not doing his homework with the City Council and finding out what would be acceptable...he apologized for that and would do what needs to happen before the City implements anything. The problem is the timeline that is due on Friday, October 8, and he would very much like Council's support on the Rental Rehab program and Council would have the full control as to whether or not it was ever implemented. Mrs. Fitz questioned if Council would be creating a problem for Mr. Pratt if a condition to provide loans up to $25,000 per unit for handicapped accessible rental units was approved? Mr. Pratt stated if Council put that stipulation on the program, it would create significantly less problems than if Council refuses to submit the application. Mr. Johnson questioned if Mr. Pratt had the Smith Cove application about done? Mr. Pratt stated no, it is a concept only. The Rental Rehab program is a revision of the old program and a fairly detailed application. Mr. Collins questioned if someone owned a duplex could they qualify for $50,000 for rehab of that facility? Mr. Pratt stated how you qualify for a loan is a review of what your financial assets are, how much funding the owner has from other sources, and the owner has to obtain a matched amount from a private lender to match with the City's money. If you look for a multi-millionaire who tries to do a duplex and get a full $50,000 and a minimal amount of outside partnering money it is not the kind of person who typically gets a loan from the City's rehab program. Typically, you would find someone putting together some private money with $7-8,000 that specifically detailed what the improvements would include. He did not deny that most people who get rental rehab are people that have enough capital in the first place to purchase the property and are not low to moderate income people. However, they would not be pulling $25,000 per unit with no other money involved and with multiple other assets. Mr. Overson questioned if Mr. Pratt could live with the #2428 TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 15 of 19 statement "only used for handicapped accessibility"? Mr. Pratt stated yes, however, he suggested using the words special needs. Mrs. Horton questioned if in fact these properties are upgraded through the Block Grant program can the owner bump up the rental rate commensurate? Mr. Pratt stated he believed there is a rent control based on a percentage of income and if there isn't such a control one could be built into the program. He preferred Council to tell him that rent gouging was not acceptable. Mrs. Horton stated she would feel more comfortable if the benefit was passed on and not just in an upgraded housing unit. She does believe everyone is entitled to a fair profit margin, but she believed the idea is to give the upgraded property and an affordable price to those low income or disabled people. Mr. Pratt stated he suspects the Rental Rehab program has something that protects against such action and he had no problem including it if it is not already included. M/S/C(Overson/Horton) to approve Resolution #2444 with the following modifications: eliminating the item on South Auto Center Industrial Enhancement, eliminating the item on Smith Cove, add language to the rental rehab loan program that would provide the funds in areas where they need handicapped or special needs type expenditures, eliminating item #2 under the Bremerton Accessibility Project and eliminating Expansion of Evergreen Park. Mr. Johnson stated usually the dollar values are made to match some magic number and questioned if that was the case in this instance,and should the $12,000 be moved to make a nicer park? Mr. Pratt stated he preferred Council not see any numbers as there is a strategy as to how much the City is applying for and he preferred to be free to work through that strategy. He assured Council there would not be significantly large changes but the strategy was not as easy as moving $12,000 from restrooms to the play ground. Vote on motion: In Favor: Overson, Neville, Horton, Fitz, Collins, Dawkins, Johnson Abstained: Colvin Mr. Johnson recommended that Council require, when this agenda bill comes up next year, it include a complete packet for each of.the items identified in the proposal. Mrs. Horton stated she wished to go a step further and devote a Study Session entirely to philosophically how we want to go after the block grant funds. She felt the place to "hash out" TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 16 of 19 proposals is in a Study Session and not out in the public with the end product being an acceptable package for submittal. Mr. Oversen questioned if that would fit in the Cityts Capital Improvement Plan? Mr. Pratt stated yes, most of the projects come out of existing Planning documents, which is a strength. He believes the Housing Bremerton program addresses rental rehab. Motion carried. 7A - ORDINANCE (FIRST READING) AMENDING THE 1993 BUDGET, #AB93-195 Actions taken by the City since passage of the 1993 budget require certain corrections in order that the budget continues to accurately reflect the financial operating plan of the City. Rich Hanna, City Treasurer, stated this is the second budget amending ordinance to appear before Council in 1993, and he expects a third amendment to happen in the month of December. He noted most of the significant budget amendment items have already appeared before Council as individual items for consideration. He referenced Budget Adjustment sheets #93-19 and #93-20 and the fact that the line item detail was somewhat different than that brought before the Council Committees. He emphasized the bottom lines of the funds are not altered so the total expenditure authority adjustments are not altered, but the breakdown of details within the program did change. Mrs Horton questioned which was the right one? Mr. Hanna stated the correct amount is on Budget Adjustment Sheet #93-20 (the unsigned document). He again emphasized there were no substantive changes to the program that is incorporated in the adjustment. The only significant adjustment, in his opinion, contained in the adjustments that are presented to Council at this time and had not appeared as an individual item, is Budget Adjustment #93-13. This item relates to the purchase of some building permitting software for the Building Department and if Council had questions on that item, Information Systems Manager Bill Eley was available to provide input, as well as Don Pratt, Director Of Community Development and David Nelson, Building Official. Mrs. Fitz stated at the time Fiscal and Budget Committee reviewed the proposed amendment to the budget, they discussed the point of bringing future amendments on a quarterly basis or fewer Budget Adjustment at any one time. Mr. Hanna stated he would try to comply with those wishes. TAPE #1139 City Council Reg. Mtg. Minutes October 6, 1993 Page 17 of 19 Mr. Overson questioned why items #93-18 and #93-20, which are two big items, were not brought before Council. Mr. Hanna stated the Agenda Bill that approved construction of the 4th Street L.I.D. contained a clearance comment made by him that the budget adjustment would have to follow as a separate document. He believed such a discussion occurred before the Fiscal and Budget Committee, but may not have been before the full Council. He believed that #93-20 had been discussed at length in the Block Grant Program, which is the source of funding for street lighting fixtures for the 4th Street L.I.D. project. Mr. Johnson stated when Fiscal and Budget Committee signed off on this item, it was a recommendation to Council, not an approval. Mrs. Horton stated she believed #93-23 needed further explanation and she pointed out the attachments referenced on the Budget Adjustment form were not included in the Agenda Bill documentation. When Council funded the budget, there was discussion about the new position in the building program and she understands there were some problems in getting that program underway. She emphasized the importance of having the enforcement program moving along because there are conditions that Council wishes to see abated. She is going to have to be convinced that funding should be switched over to another purpose and questioned what is the money going to buy? Mr. Pratt, Director Of Community Development, explained the hire has been made as of late June and unfortunately he had an emergency appendectomy and lost six weeks of work in August, which put a major hole in the program. However, that program is up and running today. Whether or not that program could be running any stronger if we were to use this money to put into it is questionable. He can always use money in an enforcement program but he did not want to take funds that would cause his budget to increase in 1994. It was also unknown to him if a contract person to assist in enforcement would be of that much value to the program. The value of this funding to the enforcement program is better spent bringing in a system managing all of the permits and making the general management system of paper in the total office, including enforcement better than if it were spent only on enforcement. The money indirectly supports the enforcement program and what is being proposed is to purchase an electronic Data Management System that is somewhat compatible with the other systems in the City and which works. Absent an electronic data program, we have a limited a program that they designed, which never reached the quality and quantity of effort that they needed. Or, they will have to go back to a manual system of paper, which hinders their efforts. Mrs. Horton stated when Council and staff meet for budget discussions in November and Mr. Pratt is TAPE #1140 City Council Reg. Mtg. Minutes October 6, 1993 Page 18 of 19 asked what kind of product did the City receive for the money budgeted last year for the enforcement program, how well it succeeded and where it is, what will Council be told? Mr. Pratt stated Council will have a product of a solid 4-5 months of work-and they will be able to document that activity. Mrs. Horton questioned if the enforcement program will be carried on into the 1994 budget? Mr. Pratt stated yes, he is planning for it in his budget proposal. Mrs. Horton questioned why couldn't we wait a month on this proposal to see where the budget shakes out and whether or not that program survives the 1994 budget? If it does survive, then Council would include $7,000 at that time. Mr. Pratt explained there is a window of opportunity to obtain the computer software from the vendor who developed the program and who is now looking for areas to test his product. The software is being offered to the City at a price of approximately $7,000, for something in the market that costs $25,000. He felt that kind of opportunity was worth taking and would be of benefit to the City. Mr. Overson stated this item received a lot of discussion at the Operations Committee meeting on the same basis of changing the funds to another use. The fact that the software package is a test model has some concerns, however, it appears it has some redeeming qualities, the specific one being that it is a labor saving device. The proposed product have some unanswered questions, however, it may be valuable to go forward with it at this time. TAPE #1140Mr. Collins stated it appeared to him that #93-21 was not processed through the Fiscal and Budget Committee. Mr. Hanna stated Mr. Collins was correct. Pursuant to the Budget Control Ordinance changes within a department between categories of expenditure when the amount is less than $5,000 the approval is granted under the Mayor's signature only. Beyond that threshold, then expenditure approvals need to go to Committee and ultimately before Council. Public comment - none. #0065 M/S/C/U(Horton/Waibel) to approve Ordinance on first reading, amending Ordinance No. 4421 relating to the budget of the City of Bremerton for Fiscal Year 1993. Mr. Johnson acknowledged the Building Official and Information Services Manager for their finding a $15,000 cost savings on some software that is needed by the City. TAPE #1140 City Council Reg. Mtg. Minutes October 6, 1993 Page 19 of 19 With no further business meeting adjourned at 7:15 P.M. KATHLEEN L. McCLUSKEY, City Clerk EILEEN FITZ, Council President City of Bremerton KLM/EF/me cc: Normal Distribution File/Vault