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HomeMy WebLinkAbout06/09/93TAPE #1113 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES JUNE 9, 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, June 9, 1993, at 5:30 p.m., with Council President Eileen Fitz presiding. Council members present were Lon Overson, Richard Neville, Lynn Horton, Hank Waibel, C. R. "Tiny" Collins, Morrie Dawkins, Al Colvin, and Russ Johnson. 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 Councilman Al Colvin. President Fitz announced Council will adjourn to an Executive Session following the City Council Meeting and the topic to be discussed is "litigation". CONSENT AGENDA - NONE 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. #0034 M/S/C/U(Colvin/Waibel) June 9, 1993, the Council does approve for payment those vouchers included and further described as follows: 166799. 166933 through 167106 in the total amount of $416,813.89; and Regular Payroll for the period ending 5-31-93 in the amount of $630,398.01. COUNCIL MEMBER REPORT8 Mr. Waibel stated he viewed Bremerton Main Street's presentation of the Leland Report and was very impressed by the change in attitude about downtown Bremerton. He recalls when he first came on the City Council eight years ago no one was willing to be first to do anything. Someone in the presentation stated they did not want to be "the last" to get into Bremerton. He sees this as "turning the corner" on the attitude about where is Bremerton! TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 2 of 26 Mr. Colvin reported on Tuesday he attended a meeting of some senior citizens, who reside in east Bremerton. The topic of that meeting was garbage and a representative from the County Solid Waste program, Dave Peters, suggested that they write to him of their concerns and he would make a presentation before the City Council. Mr. Peters is writing a Recycling Ordinance for the County and will forward a copy of that document to the City once it is drafted. Mr. Colvin suggested to those City residents that they have the right to come before their City Council and share their concerns. He invited them to attend the next Council meeting and assured them they would be treated courteously. Mr. Johnson stated the only thing he is aware of that the County is writing is an ordinance for mandatory garbage pickup in urbanized areas of the County and are now having to face some issues the City faced 20 years ago. He emphasized a County ordinance would not affect City residents. He was pleased to report the folks on the west side of Kitsap Lake, both City and County residents, have been working together to get a sewer line installed on the west side of the lake. He understands the numbers of need participants is larger than what is required for a U.L.I.D. On Thursday, June 10, a meeting will be held at Jack Lefcoski's residence and anyone interested in the sewer line along the west side of Kitsap Lake are welcome to attend. He extended a special welcome to some family members who are visiting from the midwest. Mrs. Fitz reported the Leland Study was presented to the City Council at the June 7th Study Session. That report was not one of those big overblown studies that will cost zillion of dollars to implement. There are lots of things that members of the business.community and/or property owners in Bremerton can do - like fixing up facades, painting, offer of financial help from local banks to assist in exterior and interior remodeling and it can be done in stages and steps. The Leland Report calls for a "waterfront village" which she felt was appropriate because it reminds one of something a little smaller but with a lot of amenities. She also believes Bremerton is in the process of having a lot of amenities to offer in the downtown and if the Leland Report is put into place and things start happening it will become a much more attractive place for visitors and will become a real tourist destination. PUBLIC RECOGNITION Gordon Walgren, Lobbyist for the City of Bremerton, stated TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 3 of 26 this is the third year he has served the City in this capacity and is proud to act as their representative. He noted that "litigation" actions seems to be an ever increasing process for many municipalities and jurisdictions. Litigation could have been the same situation in the legislature this year as it was a very contentious, mean spirited legislative session. There were lots of bitter words transferred back and forth from interest groups, citizen groups, legislators, individual legislators between themselves and it was a difficult session to accomplish many of the things that were accomplished. He believed such an environment is true whenever a session is based where there is a budget shortfall. The 1993 Washington Legislature was authorized by State constitutional provision to meet for 105 days. Its' only mandated responsibility was to enact a balanced biennial budget. In fact, the legislature met for 116 days after a failure to pass a budget within the allotted time and only after the Governor had reconvened the legislature into special session. The Budget is made up of three parts...new taxes, new money from existing sources and cuts to derive savings. The Governor originally proposed a tax on services and that was argued through the legislature and finally abandoned in the final days, finally resorting to the traditional taxes that we now have, an increase in the B&O Tax, a surcharge in the B&O Tax and extension of Sales Tax to some limited consumer businesses at this time. Some individuals and businesses were taxed rather high - 66% being the highest he was aware of. That tax package, he suspects, is the primary reason why there will several initiatives considered this fall.. Initiative 1-601 and 1-602. Initiative 1-602 is the so called tax roll back measure and seems to be gathering enough momentum to get enough votes to be placed on the ballot. Pursuit of the initiatives is brought about by the frustration of the public for the increases in taxes and the feelings cuts were not sufficiently made to do the job.. He noted the various interest groups that he represent, who did receive those cuts on some of their programs, feel they were terribly wronged and should never have happened. All who are involved in municipal government and local government are going to have to be concerned about this initiative that is on the way because one of the primary goals of local government was funding of the Criminal Justice System. That was in doubt all the way through the legislature and there were a number of compromises made to get that bill passed and into the budget. He believes the legislature will be back in session before this year ends to try to make up any taxes that are cut by that initiative. The session started out as one that cities should have been TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 4 of 26 concerned about. It looked to him like it was going to be a difficult session for cities, however, he did not think it turned out that way mostly because of the victory in the Criminal Justice Program and number of other items. One of his responsibilities representing the City of Bremerton is to look out for particular City of Bremerton issues. A minor bill, but one that caused difficulty in the City, was the disabled bill that was finally passed giving cities the authorityto pass by ordinance reasonable restrictions on parking in disabled spaces. Mayor Mentor testified before the Legislative committees that cities would be more inclined to provide more spaces if they could place reasonable time limits on some of the usage. One of the bills that was worked on but did not pass, but will be looked at again next year, is the use of Court Commissioners in Municipal Court. That item was hung up because of Chairman Applewick's belief that all Municipal Courts should be elected and paid practically at the same figure as Superior Court Judges and apparently not recognizing the cost savings and the cost involved for cities if they have to go the full route he suggests. Chairman Applewick was successful in getting a bill passed that will require the election of Municipal Court Judges at a salary 50% of the Superior Court and he assured Mr. Walgren that the use of Court Commissioners will be looked into next year. On the Transportation side, Bremerton and Kitsap County did well. The major goal in Transportation was to finish construction of three jumbo ferry boats - that appropriation has been made and they will be built in Washington. There are no new taxes in the Transportation budget even though both Houses proposed some as did the Governor, but they did not pass. Major Health Care measure passed and he anticipates it will be worked on for some period of time. He thanked City Council members, Mayor Mentor, Kathleen McCluskey and others who took time to testify before the Legislative Committees. He emphasized the Legislators prefer to have their constituents/voters before them speaking rather than the "paid/hired gun" lobbyist. Mr. Johnson pointed out Mr. Walgren's written report mentioned something about the legislators who come from Kitsap County and an innovate action they took this past session. Mr. Walqren stated Wes Pruitt and several Kitsap County legislators decided they should have Kitsap Caucus that would bring together all Kitsap County Legislators twice a month to discuss Kitsap issues. Those meetings were held and they TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 5 of 26 worked very well, resulting in some accomplishments that evolved from that effort. Mr. Collins requested clarification of Joint Administrative Rules and particularly in the area of an agency issuing orders, that then becomes become law. He questioned is there anything that really is limiting these minor agencies from imposing legislation on cities that affect them adversely financially? Mr. Walgren stated that was a point of discussion during a luncheon meeting with Ann Daily, who runs the Office Of Fiscal Management for the State and who is heading up the Governor's task force on regulatory reform. He was assured by Ms. Daily that the directive has gone out to agencies that before anything becomes "law" it has to go through the full process instead of just issuing a letter or being made into a policy and then handed out to the recipient. Also, he questioned if this would be a real effort on the part of the Governor's Office to really look at some of the problems that the municipalities, counties and businesses have in dealing with State agencies? Ms. Dailey's response to him was yes. Mr. Collins questioned, on the issue of Municipal Court Judges being elected, which he believes was directed at Bremerton, what can be done to hold it off? Mr. Walgren stated it would be very difficult to hold it off. He believes Bremerton was used as an excuse for a determined attitude the Chair had. He thinks there would be much difficulty in trying to change that particular provision. He suggested proceeding to try and get the Court Commissioner bill passed in order to try and keep costs down. Mr. Collins questioned if there was any chance for a Justice Of The Peace? Mr. Walgren stated no. Mr. Colvin questioned if mandatory election of Judges is imposed on the City along with stipulating the salary, why didn't they go one step further and augment that salary? Mr. Walgren stated this is an issue that is fought every time when mandated requirements come down from the State. He believes it was the logical result that could occur to have State Judges being paid by the State. Mrs. Horton questioned when will the requirement for elected Municipal Judges being imposed? Kathleen McCluskey, City Clerk, stated the position for Judge would be up for election in 1994 and seated in 1995. Mr. Overson questioned irrespective of the existing terms? Mr. Walgren stated the City would continue with its existing Court. Mrs. Horton questioned if that new law talks about where the candidates need to be located, i.e., city limits? Mr. Walgren stressed the candidates do not have to live within the city limits, however, they do have to live within the County. Mrs. Horton questioned if the candidates for Judge would run County - wide or City - wide? Mr. Walgren stated he had not looked at that detail and would provide a response later. TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 6 of 26 Mayor Louis Mentor stated the City pays its Municipal Judge more than what will be required by the new State law. The following Proclamation was read: Week of June 12 - 20 as PHILIPPINE INDEPENDENCE WEEK. He announced the Miss Filipino - American Pageant will be held on June 12, at the Bayview Inn. He cautioned that not everything was going quite so well with the proposed sewer project on the west side of Kitsap Lake. But, the citizens in that area are working to obtain the required number of participation for such a project. On June 4, he attended the Awards Assembly at Bremerton High School, where he had an opportunity to present a Scholarship Award. He was pleased to announce Bremerton High School experienced a very successful year for scholarship awards for their students. The in door Flea Market held this past Saturday raised funds for Pendergast Regional Sports complex and had quite a good turnout. He reminded everyone a meeting on the new Ferry Schedule will be held, this date, 6:30 - 8:30 P.M., at Washington Mutual. And, on Monday, June 14, at 2:45 P.M., on the boardwalk a Flag Day Ceremony will be put on by the Bremerton Area Chamber Of Commerce. In reference to earlier remarks by Mr. Waibel regarding the Leland Report, he participated in a live presentation on June 8th, that talked about downtown Bremerton and what is happening there. Included in that group were Lou Weir, Tim Ryan, Gary Garten and Mary Lou Huntington. It pleased him to hear the enthusiasm that came out of this group. That presentation will be broadcast on Thursday evening, June 10, at 9:00 P.M., on Channel # 12. He reported the following business activity: a new business on Kitsap Way by the Tire Boys, called "One Day Sign"; a new car lot on 6th Street between High and Pennsylvania Avenue, owned by Dick Dodd; and Bremerton Travel has moved out of Wheaton Way area and moved to 5th Street just below the Admiral Theater; and a new business for the County is locating on Wheaton Way; Windermere Real Estate has moved into a building at llth and Park. Mr. Waibel noted over a million dollars in scholarships were awarded to Bremerton High School students. Pastor Danny Allen, Grace Pentecostal Church, read into the record a letter of appreciation from Grace Pentecostal Church to the City and Bremerton Community Access Television personnel, for the generous contribution of time and technical expertise given to the Grace Pentecostal Church to tape weekly church services, as well as training two of their Church members to assist with the TV cameras by one - the - job training. President Fitz stated she too wanted to thank the Cable Access crew for their commitment to the City Council to televise Council meetings each week. She noted the quality of TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 7 of 26 programming on Channel 12 has been excellent. Gordy Byrd, P.O. Box 930, reported as of this date he has collected $15,867.77 towards his shelter for the homeless. He also reported on his successfully completing a Social Psychology class at Olympic College as well as several classes provided through ARC (Association of Retarded Citizens). Bill Riplinger, Seabeck Resident, handed out a proposal titled "ACCOMMODATING GROWTH WHILE PROTECTING RURAL AND RESOURCE LANDS". He was before Council to talk about the Growth Management Act (GMA), which basically compels the cities and counties to do certain things and to work together on certain things. 'There is coordination and cooperation with respect to planning that has to take place. We all know that the cities understand what their obligations are under the GMA, with staff prepared to accomplish the job that needs to be done. It is no secrete the cities in Kitsap County and the Kitsap County government do not quite agree on how planning should be done and who is "holding the ball". He does not believe that everyone in the County agrees with County government on some of those issues and there is a strong sense of interest on a part of many community groups and community members, and that was why a citizens proposal was put together and delivered to the Kitsap County Commissioners in May. The GMA presents a couple of problems basically in two steps: (1) the County was to identify and designate certain resource lands in critical areas. This is an important step and was to be in place on July 1, 1990, and as of this date that is not complete; (2) this part is about urban growth planning and designating the urban growth areas and that is where the City of Bremerton and other cities become vitally interested. In fact, the GMA puts the ball in the City's court to identify these urban growth area boundaries. It also puts the ball in the City's court providing services to those urban growth areas within those boundaries. Currently, in the County there is a race by developers to convert resource lands to residential lands as rapidly as possible. If you look at the kinds of development they are racing to do, it is developing urban areas outside of urban growth areas that haven't been designated yet. He expressed concern that the process has broken down and there isn't good communications going on, stalling movement forward and step one hasn't been completed, and we are having problems with step 2. The newspaper reports that Mayor Mentor has tried to gain cooperation and hasn't been successful. He referenced the handout document under Section B - Land Division Moratorium, and noted it was a nice idea and was one of the things the citizens group was proposing. He raised the question "why would the City be interested in that" - because TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 8 of 26 if the spirit of the GMA means anything we ought to be a little organized where growth occurs and we are not organized at all. This is a race of Court house to convert resource lands to suburban developments for the County. Part C of his handout document is the nine point proposal, which the citizens group presented to the County Commissioners. It was presented with well over 150 signatures from people all over the County, citizen groups, etc.. He noted the City and County come together on the issue of urban growth areas services and we are already headed to court on the services issues so we know how well we are getting along on that. He personally does not believe there will be a lot of cooperation until Step 1 is completed. The simple solution will probably not occur. A suggestion was made by the Mayor that funds were available to hire a mediator, who would be neutral/unbiased, to move this issue forward. There is a neutral body and that is the Kitsap Regional Planning Council and hopefully through that group they can facilitate the cooperation and coordination that will need to happen. He asked that the Bremerton City Council consider endorsing the proposal either in part or as a whole and forwarding that along to the County so they will get a feel for the level of interest on these issues and how important it is in the County. Cal Baines, 1202 Broadway, stated his concern over the City's intention to convert the old tennis courts, located at llth and Warren Avenue, into a basketball court. No one canvassed the neighborhood to see if anyone objected to having the basketball activity in that area. About two months ago someone did came by and asked him about the possibility of installing basketball hoops on the court area and at that time he conveyed his desire to not have that happen because of the noise it would generate. If the City allows basketball to be played in that area, he believes it will bring in additional problems, loud music, gathering of gang type groups, added traffic, more litter, etc.. He and his wife both work and would not appreciate coming home in the evening and having their peaceful neighborhood disturbed. He suggested that the City look for locations for outside basketball courts that are away from residential areas. He does not mind having the tennis courts located in that area. He requested a written response to his concern. Don Larson, 135 Rainier Avenue, reported he received a telephone call from Lloyd Lofthus, owner of a lot at Pacific and Sheldon Blvd., who resides in Texas. At that time, Mr. Lofthus expressed his "thanks" to the volunteers who helped clean up his lot. Mr. Lofthus was agreeable to do something about keeping his lot clean of rubbish and litter, however, he TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 9 of 26 did not have a lot of money to spend on that area and he did have a couple concerns. Mr. Larson told him that the Waterfront Access Plan for Bremerton suggests making that site into a park, however, Mr. Lofthus prefers to sell the site. Mr. Larson asked him if he would allow the public to use the property if it was leveled out, grass planted and maybe picnic tables placed on it? Mr. Lofthus's response to that was he was concerned he could get sued for liability. The City's Waterfront Access Plan addresses an RCW where if a landowners donates his property for public use, he cannot be held liable. Because the City's Christmas In April program has been so successful, he wondered if such a volunteer type group could be put together to help make improvements to Mr. Lofthus's lot. Currently, Kitsap Health District is working to get Mr. Lofthus's property fenced off. He stressed the importance of educating the pubic as to recycling and proper places to dispose of unwanted items. He also looked into the possibility of obtaining an old Navy anchor chain to use as a barrier for access to the Lofthus property, which would give it a nautical theme. On the issue of garbage collection, he believes people are being over charged for garbage collection services they do not use due to their not generating any garbage. He interprets the City's garbage collection ordinance having a $1.75 per month minimum collection fee for someone who does not produce garbage, which he believes is in full compliance with Waste Not Washington Act ESHB - 1671. He announced on June 10, 7:00 P.M., the Department Of Ecology will hold a Citizens' Advisory Committee meeting at the Silverdale Target Store. This meeting is open to the public. Anyone wishing to contact Mr. Larson can do so by calling 373- 5367. Mr. Larson raised the question if the City could work with the Washington Scuba Alliance group, which is a 501C3 non - profit organization, between now and January to prepare a grant application to the Interagency For Outdoor Recreation to address some type of park development on the Lofthus site? President Fitz directed Mr. Larson to speak with Mayor Mentor on such a proposal. 8A - CONTINUED PUBLIC HEARING: APPEAL OF PLANNING COMMISSION DENIAL OF A ZONING ORDINANCE SPECIAL EXCEPTION TO ALLOW AN INTRUSION OF 15 FEET INTO THE FRONT YARD SETBACK OF THE SF-3 ZONE FOR A 30t X 30t THREE CAR GARAGE/STORAGE STRUCTURE; APPLICANT: DAVID BARCELON, LOCATION: 1545 MADRONA POINTDRIVE, #AB93-110 On April 25, 1993, the Planning Commission denied an application for a Zoning Ordinance Special Exception to allow a three - car garage/storage structure to locate within five (5) feet of the front property line abutting Madrona Point Drive. TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 10 of 26 The City Council, when hearing an appeal, shall either: 1) Affirm the decision under review; 2) Reverse the decision under review; 3) Modify in whole or part the decision under review; or 4) Remand the matter back to the Planning Commission for further consideration. Such action shall be decided by a majority vote of the members present. That vote may be taken at the same or any subsequent meeting. Shane Jensen, Planner, stated it has been requested that this item be pulled from the Agenda because there have been some conversations with the appellant that could be fruitful and alleviate the need for such an appeal. If this item needs to come back as an appeal, the proper public notification will be made. President Fitz asked if the appellant had been notified of this change? Mr. Jensen explained the proposed change was at the appellant's request. Mr. Johnson questioned if the appellant wanted to withdraw his appeal application, continue the hearing, etc? Mr. Jensen stated the appellant's request is not an official withdrawal of the appeal. Leila Mills, Acting City Attorney, stated it appeared to her that the appellant was asking for a continuance depending on the outcome of any negotiations. She did not believe the appellant was asking not to be heard, but it could be resolved otherwise. As to the proper procedure, she believed tabling the item at this point would keep it within the domain of City Council so that the appellant would not lose his appeal rights. Mrs. Horton suggested that the maker of the motion include a stipulation that all of the notice that would go out for a first time hearing should go out again even though this hearing could be continued indefinitely. Mr. Waibel stated he did not support the idea of continuing the hearing indefinitely. There needs to be some closure on this proposal and establish another date for future hearing. President Fitz asked if anyone was in the audience who wished to speak to this particular item. One party in the audience indicated they were against the proposal, however, they would have an opportunity to speak to that issue at the next hearing date. #1963 M/S/C/U(Waibel/Johnson) to continue this hearing for five weeks with the required notification to occur prior to the next hearing. CONFIRMATION OF APPOINTMENT OF EDDY CHU TO POSITION OF TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 11 of 26 DIRECTOR, PUBLIC WORKS AND UTILITIES, #AB93-112 Recruitment of Candidates for the position of Director, Public Works and Utilities was conducted in March and April. Thirty - two applications were received and four of those were invited for a personal interview on April 30, 1993. Candidates were evaluated by a panel consisting of: Rich Barrutia, Division Engineering Manager for Puget Power; Don Krupp, Director Community of Preservation Development; Will Maupin, Director, Facilities Division, PSNS; and Don Pratt, Director of Community Development, City of Bremerton. The panel felt Mr. Chu would make an excellent selection to fill the vacant position. Mr. Chu is a graduate of Oregon State University with a B.S. degree in Civil Engineering as well as an M.S. degree in Sanitary .Engineering. Mr. Chu was with Seattle Metro for almost 20 years and most recently held the position of Manager, Environmental Engineering Department with Howard Needles Tammen & Bergendoff in Bellevue. Mayor Louis Mentor stated Mr. Chu has excellent credentials besides his expertise in sewer and water, he also has a Civil Engineering background. The City had lots of candidates to choose from various parts of the country. The Administration did contact references listed, as well as some of the City's contractors and the response was verypositive as to Mr. Chu's abilities. He noted a member of the City Planning Commission was also familiar with Mr. Chu's experience at Metro. He urged Council to confirm the nomination of Eddy Chu as the City's Director of Public Works and Utilities . Mr. Johnson stated in reviewing Mr. Chu's resume he did not see the strong sewer and water background. Mayor Mentor stated the more technical knowledge background came up during the personal interviews. Mr. Chu worked his way up through Metro and served as a senior manager for the past 10 years. Mr. Johnson stated what concerned him was that Metro is a large organization and people can become departmentalized and he wanted to make sure Mr. Chu had actual experience in the areas of water and sewer utilities. Mayor Mentor emphasized Mr. Chu's expertise is inthe water and sewer utilities area. Public comment - none. #2167 M/S/C/U(Waibel/Collins) motion to confirm the appointment of Eddy Chu to the position of Director, Public Works and Utilities, and authorize the Mayor to execute the attached Employment Contract. TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 12 of 26 Mayor Mentor thanked Council for their confirming Mr. Chu's appointment and reported he will be starting work on July 6. 7A - ORDINANCE (FIRST READING) RESTRICTION OF FIREWORKS DISCHARGE, #AB93-113 I, along with Police Chief Del McNeal, request that the City Council via the attached Ordinance, to restrict the discharge of fireworks to a singular day (July 4, 1993), from the hours of 11:00 A.M. to 11:00 P.M., inclusive. The County Commissioners passed a similar legislation on May. 24, 1993, to restrict, consistent with our attached request. Al Duke, Deputy Chief Of Operations, stated there is a State and national effort to ban fireworks over the next 3 - 5 years. Their initial intent with the proposed ordinance is to limit the discharge of fireworks from 11:00 A.M. to 11:00 P.M., only on July 4. The allowable time for sale of fireworks would remain the same. There have been a number of endorsements, both locally and on the State level - Fire Chiefs' Association, Fire Commissioners' Association, Association Of Washington Cities, local Health District and members of Harrison Hospital. The intent is to reduce the number of human injuries, property damage and trauma experienced by animals, as well as a public nuisance involving the clean up afterwards. He introduced Fire Chief Mike Brown, representing the Kitsap County Fire Chiefs' Association, who has made similar presentations to Kitsap County Commissioners, City of Poulsbo and City of Bainbridge Island. Fire Chief Mike Brown, Fire District # 7, stated he was before Council representing the Kitsap County Fire Chiefs' Association and the Kitsap County Fire Commissioners' Association; and believes he will be expressing the concerns of fire fighters in all of Kitsap County. His goal is to encourage the Council to adopt the proposed ordinance to restrict discharge of common fireworks in the City limits to July 4, 1993, from 11:00AMto 11:00 P.M. It is also part of his responsibility and goal to try and educate the Council on the need to implement an eventual ban on the sale of and discharge of common fireworks. The ban, from his prospective, should be implemented through a phase process of restricting the discharge of fireworks in 1994 and then eventually banning the sale and discharge of fireworks by 1995. For 356 days of the year fireworks are illegal because they are hazardous, unsafe and only authorized to be handled by certified pyrotechnicians. For nine days of the year that law is removed under the disguise of celebrating our independence. An analogy is perhaps we should remove the laws on traffic TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 13 of 26 regulations under the disguise of celebrating our independence. If this were the case, we could allow our children to drive our vehicles under responsible adult supervision. The increase of injuries during this nine day period would be acceptable because we are Americans celebrating the independence of our country. He questioned "would this be acceptable to you" - it would not be to him. Likewise, removing the law prohibiting fireworks for nine days out of the year is not acceptable, nor are the injuries to our citizens and property damage that occurs is acceptable...is it to you? You will hear people say today they are biased - they are biased because it is their responsibility to prevent injuries to citizens and to prevent the loss of property owned by the citizens. They also do not want to expose the fire fighters of Kitsap County, or children to unnecessary injury or unnecessary loss of valuable property. Their profession is hazardous enough and exposes fire fighters to enough trauma. Help us prevent the unnecessary losses to property and injury to Citizens by banning fireworks. Bans on the use of fireworks have been proposed by both the National Fire Protection Association, based on recognized property damage and personal injury contributed annually to fireworks, and the American Medical Association, based upon the thousands of emergency room cases seen each July 4 due to fireworks. He noted there was a press release issued on June 2, 1993, from the National Fire Protection Association, which addressed the importance of Americans attempting to make fireworks and Independence Day celebrations safer. In 1991 there were 617 reported fires, $2,243,000 in property losses reported, 352 injuries treated, 51% of those injuries were to children under the age of 16 and 60% were caused by legal fireworks. In 1992 there were 150 reported fires, $383,000 in property losses reported and 146 injuries treated, 54% of those injuries were to children under the age of 16. He reminded everyone in 1992 most areas restricted the discharge of fireworks to July 4th only and mother nature blessed us with rain all day; there were still six injuries treated at Harrison Memorial Hospital on that day. As you can see injuries caused by fireworks and property loss caused by fireworks are excessive in our country, likewise they are excessive in our County. A fence on the hill or an ambulance in the valley reminds him of the dilemma the City is faced with today. Using this illustration many injuries are caused and lives lost as cars driving on the hill fall off and into the valley, losing their lives or becoming seriously disabled. Should Council authorize placing an ambulance in the valley to care for these people or should they put a fence at the top of the hill to prevent the injuries and fatalities from occurring? He hoped Council would choose to put up a fence at the top of the hill. TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 14 of 26 Another thing one will hear during this discussion is that fireworks plays a significant financial impact on non - profits organizations who depend on fireworks sales for their existence. To this he says..."it is simply time to find another resource. There are far better ways for non - profit organizations to raise money than by selling devices of destruction. This does not appear to be a fair trade off, no amount of money earned would justify selling a device that may injure one of our citizens. The concept of safe and sane fireworks is a gross misnomer. In the hands of untrained users no fireworks are safe and sane, nor does it appear to be prudent to sanction the raising of money by organizations through the same of devices that have long documented history of causing injury and destruction. The Kitsap County Fire Service believes that phase in process for ban of fireworks will allow service organizations the ability to find alternate funding sources. If the service organizations desire to earn additional revenue during Independence Day celebrations, the Kitsap County Fire Service will assist them in any way they can in order to find additional fund raising efforts, such as a use of fun nerworks or other methods of raising fund. Representatives of the fireworks industry will say that banning fireworks will merely force residents to purchase illegal fireworks at the Indian Reservations. He for one really objects to the implication that residents are law breakers, who would knowingly break the law. If such a law is passed banning fireworks, he truly believes the residents will obey that law. Illegal fireworks are already illegal and the primary reasons residents purchase these fireworks is because it is difficult to tell the difference between a legal and illegal firework. He believes all the municipalities in Kitsap County should unite their resources to have a community celebration of our independence. This celebration should be jointly encouraged and sponsored by all jurisdictions. Pyrotechnic displays could be provided by professional pyrotechnicians, perhaps laser light shows could be provided as entertainment and any proceeds from this type of activity from commercial sponsorships could be designated to specific charities. Service organizations could sell ice cream, hot dogs, soft drinks and safe funnerworks to allow children to safely enjoy the 4th of July. With this thought in mind, he believes the Fire Service Of Kitsap County would take the lead and in cooperation with local newspapers, VFW, Kiwanis, Lions Clubs, Rotary Clubs, JC's, Eagles and others, could sponsor a 4th of July celebration that safety allows us to celebrate our nations independence and safely share this special day with our neighbors. Please, on behalf of the Kitsap County Fire Chiefs, Fire Commissioners, fire fighters, children adults of our county, "build a fence at the top of the hill" by adopting TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 15 of 26 an ordinance that will eventually ban the sale and discharge of fireworks. Mr. Overson raised the concern that the issue being addressed by Chief. Brown did not accurately reflect the intent of this Agenda item. Mr. Duke stated the intent of the ordinance is to limit discharge of fireworks this year to one day - July 4th, ll:00 AM to 11:00 P.M. He will be coming back to Council in the future to propose banning the discharge of all fireworks except professional displays. Mr. Waibel pointed out the proposed ordinance states that only uncommon fireworks can take place for nine days and the common fireworks will be limited to that 12 hour period. Leila Mills, Acting City Attorney, suggested deleting the word "common" and to reference "all" fireworks. Mr. Waibel questioned the definition of "common" and"uncommon" fireworks? Mr. Duke explained the definitions are in State statutes. There are two kinds of fireworks, one being the illegal fireworks that can be purchased on Indian Reservations. Ms. Mills explained the "common" fireworks refers to legal fireworks. Mr. Waibel questioned if what we want to say is allowing only legal fireworks between 11:00 A.M. and 11:00 P.M. on July 4th, and at all other time fireworks are illegal except for pyrotechnic displays? Mrs. Horton stated she did not believe the proposed ordinance clearly reflects what the Fire Department wants to be have effect for this year. Jerry Farley, 2540 34th Avenue South, Seattle 98144, lobbyist for Washington Independence Day Association, a voluntary association of some fireworks wholesalers and some fireworks retailers. He emphasized the word "some" because there are clearly some licensed wholesalers in this state who have not been invited to join and there are some retailers in the same situation. He believed it was fair to say they don't represent any Indian Tribes. By and large, the Independence Day Association represents approximately 90% of the legally licensed operators in the State of Washington and most of the persons who sell locally do so pursuant to license from the State and a permit. Under Federal and Department of Transportation regulations, there are three type of explosives, Class A, Class B and Class C. Class A explosives include military weapons, such as missiles. What constitutes a Class A is not only the kinds of chemicals used in the manufacturing but also the quantity. Class B in general is explosive like dynamite and lots of other ammunition, a more restricted list of chemicals and more restricted quantity. Class B fireworks are called "special" fireworks under Washington state law and until October 1993 or TAPE #1113 City Council Reg. Mtg. Minutes June 9, 1993 Page 16 of 26 early 1994 is also the term used by the Federal government. Terms/definitions relating to explosives will change because of the United Nations protocol that the United States and all other nations of the world signed. Normally, when people think of Class B fireworks they think of display fireworks, which require a license to discharge and a special display permit. Class C explosives includes a large number of things in addition to the kinds of fireworks that are defined as "common" fireworks. Those generally have a very restricted list of chemicals and significantly restricted quantity of those chemicals. One of the most important distinctions between Class B and Class C fireworks is that the definition for Class C uses the word combustion, which means they burn, whereas Class B special fireworks uses the term detonate, meaning they explode. The only Class C common fireworks that explodes within the definition are firecrackers and those are restricted to 40 milligrams, which is 2/3's of the weight of a grain of wheat or rice, so anything larger than that explodes is a Class B and must be handled by only licensed pyrotechnicians. When hearing the terms cherry bombs, MS0's, etc., all of which were legal in the united States for public use until 1966, have not been legal since 1966, with one exception and that has to do with farming and the use of such fireworks for pest control. What is being talked about here, with respect to use by the public, is a subset of Class C common fireworks. He uses the term subset because State law was changed in 1982, when the State Fire Marshall wanted to legalize within the State everything the Federal government said was legal. The fireworks industry opposed legalization of bottle rockets, sky rockets and missiles and won that battle. Even though such fireworks are illegal, 100 - 150 million of them are sold in Washington on Indian Reservations. The reason they opposed their legalization was because they viewed them as "cheap fire". They would like to see them banned nation - wide, however, they know that will not happen because the Federal government will not get involved. Mrs. Horton left the Council Chambers at 7:15 P.M. TAPE #1114 Mr. Farley stated he and Chief Brown had talked on opposite sides at least once before and in fairness to Chief Brown, who read mostly the same speech but with a few omissions, he would try and respond to the testimony given at this time. He was not sure if Chief Brown had handed out copies of his complete statement or if it had been altered in any way. The retailers and wholesalers he represents are in business, licensed by the. State and pay taxes, are members of the community, they live in your neighborhoods, they are organizations and companies of TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 17 of 26 good citizens and law abiding citizens. He also believes a large number of people who use fireworks are law abiding citizens. Approximately 2/3 of all the money spent on fireworks is spent on Indian Reservations. There are more Indian stands in close proximity to Bremerton than there are legal licensed stands and will be opening any day now and will be selling a lot longer. If there are hundreds of millions of this stuff around and we're talking about a few incidents, 600+ according to 1992 statistics from the State Fire Marshall and you also accept the fact that those statistics are not complete, he thinks they represent somewhere around 50% of the Fire Departments. It is obvious the vast majority of people who use fireworks do so faithfully and that the vast majority of times that fireworks are used they don't seem to cause any problems in the hands of people who are responsible as well as the vast majority of people who use fireworks and are not responsible. Chief Brown said we prohibit fireworks 354 days each year and make them legal for nine. The law was written in 1961 and became effective in 1962. Prior to that law, there were no restrictions on fireworks except at the local level. It was the fireworks industry that went to the State legislature and enacted that law because they thought there was a need to restrict the use to the one celebration of the year that made sense - 4th of July. There are many states, including Alaska and Hawaii, where fireworks are used many times throughout the year. He did not think Chief Brown's analogy about lifting the age limit to drive is a very good one. He thinks what we are talking about here is 4th of July, a day that we as Americans celebrate our freedom from the oppressors our ancestors chose to escape from and fought to free themselves from. And, he thinks it is appropriate that fireworks are used for that occasion because fireworks were brought to this continent by people long before there was anything like 13 colonies and they were used for all kinds of events. Chief Brown is also slightly wrong in that according RCW 70.77.311 any person can get legal fireworks, including firecrackers, chasers, etc., and use them at a specific times and places by obtaining a no-cost permit from local Fire Departments. He shares one major concern with Chief Brown and the Fire Service and he wished we could focus on that - the legal fireworks industry believes the 4th of July should be a safe and enjoyable holiday for everyone and they no one should be put at risk by irresponsible or illegal acts of individuals. Statistically, some 85-95% of the fires and injuries are associated with misuse of a firework item and sometimes illegal use. A provision was added in State law that it is illegal to use fireworks in a way that endangers the life or property of any citizen. He did agree with Chief TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 18 of 26 Brown's analogy about the fence on top of the hill and an ambulance below, however, he just disagrees with the kind of "fence. Chief Brown wants a fence called "prohibition" and he thinks those of us who have studied prohibition, with respect to alcohol found it did not work and made things worse and it was repealed. He thinks of a fence being "education" and legitimate, sensible restriction upon the misuse of fireworks. He supports the idea of working on an educational program and over the years they have asked the Fire Service to join them in that kind of a program, however, consistently they have refused to do so because they think the industry is tainted because they sell fireworks. He thinks all of us should be able to say if you are going to buy fireworks buy legal fireworks and use them safely and responsibly. He agreed most people are law abiding citizens, but he knows that 2/3rds of every dollar spent on fireworks isn't spent through any of the stands and organizations with which the clients he represent are associated and that says something to him...that the people are voting in a way with their pocketbook and some of them will still go out and buy it even if you tell them they can't do it at all and he believes that breeds disrespect of law. In closing, he wanted to dismiss the proposal of getting the clubs and organizations to make money other ways. Chief Brown referenced funnerworks, which to him is a nice idea but it is not a substitute and selling hot dogs and things like that doesn't make it either. These are organizations of volunteers who.work real hard for the money they make, which is given back into their communities. He does not believe there is anything inherently wrong with selling a federally regulated, State regulated legal product to your neighbors who will use it in a safe and responsible way and then using that money to benefit the community. We are not selling illegal drugs - we are selling a product that is regulated by six different Federal agencies and at least four or five State agencies. He did not find it troubling with respect to what the City trying to say and proposes to restrict the use of fireworks to July 4th. He is troubled by what this ordinance is trying to do. This year the 4th of July is on a Sunday and the national holiday is on the 5th, so this year you would not be able to celebrate the 4th of July on a national holiday, July 5, when that is the day the Federal and State governments celebrates the holiday. The second problem is a more serious one - he respects the rights and concerns of the Fire Service to try and reduce the impact upon their resources and he thinks allowing fireworks to be used for only one day is a guarantee there will be more problems that day. So, he urged a more TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 19 of 26 creative approach, allow the discharge of fireworks for 3 - 4 days, starting on Friday July 3rd through July 5, as well as including in the ordinance some kind of language that will encourage a strong and meaningful public education program. He believes there will be fireworks in this State, County and city and all he asks is to recognize the people who are in the audience tonight who oppose more and more restriction are here because they care about their community , Fire Service, and their neighbors; and if you put them out of business there won't be anyone here to help you solve that problem. If he had more time, he could give examples where more and more restrictive ordinances have finally convinced clubs and organizations it is not worth it any more and so the only people who are selling are the Reservations and they don't have to talk to you. Respectfully, he would like to work with the City on a more balanced and potentially much more effective ordinance. President Fitz restated the fact Council was only voting on the proposed ordinance and not a total ban on fireworks. If, at some point in time, the City decides to propose a ban on fireworks, there will be a public hearing and public session. Mr. Duke stated to assure public notification of future hearings on the possible ban on fireworks he could see that notices are sent out to each organization if they provide their address and phone numbers. He pointed out the City's process for adopting such legislation involves two readings of an ordinance, which provides the public two opportunities to express their opinions, and is affective 10 days following passing the ordinance at the time of second reading. Kitsap County's process involves just one reading of an ordinance, which then turns into law. Jim Wooley, 1007 Nipsic, stated he is a volunteer worker for the Vietnam Veterans' fireworks and the father of two children. In 1992 he testified before Council when the issue of restricting discharge of fireworks to July 4 was brought before them due to the excessive dry season. It was his contention last year, which was borne out by comments he overheard while working at the fireworks stand, that being a military community and having to restrict discharge of fireworks to just July 4th would greatly impact active duty military personnel who have to stand duty on the 4th of July. On the days that he volunteered to work in the fireworks stand, he had to turn six people away because they would not able to discharge any fireworks they purchased because they would not be available that day due to being on - duty. He TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 20 of 26 would like Council to consider a longer period for the legal discharging of fireworks. He pointed out Mason County has not adopted any restrictions yet and Bainbridge Island is allowing discharge of fireworks on July 3,4,5, so people can take advantage of the three day weekend. If it is necessary to make restrictions, he implored Council to think about those citizens within the City's limits that can't always shoot off their fireworks within that 12 hour period. Cal Baines, 1202 Broadway, stated he is a Class B licensed Pyrotechnician, and there is no comparison between the Class B fireworks and Class C fireworks. What he sees happening is the maneuvering to eliminate all fireworks. He enjoys firing off fireworks, shooting professional shows and he enjoys Class C shows. He believes "education" is the answer and he pointed out the fact that fireworks are clearly marked with "safety tips" for handling. Buzz Delebo, Washington State fireworks wholesaler, 4801 Dunbar Drive, Gig Harbor, passed out some statistical information for Council's review. He pointed out 38 states allow the rights to use fireworks and only 12 states have banned fireworks. Those 12 states account for 46% of the fireworks related injuries in the entire United states. Of the 12 states, they consist of 24% of the entire population of the United States. He urged Council to contact the Consumer Product Safety Commission if they have any questions relating to the statistical information he handed out. Karen Gower, 910 N. G Street, Tacoma, Pyrodyno - American, stated she has worked with organizations for 24 years and is keenly aware of all the fireworks issues. She emphasized there is not a market for fireworks year around. The Indian Reservations do sell fireworks year around, however, one does not hear a lot of fireworks going off until just before the 4th of July. The reservations open their stands in early June. She noted people have money to spend on fireworks and they will spend it where they can get the product. She questioned why limit discharging of fireworks to just the 4th of July and cut out the people who would like to shoot off fireworks on the 2nd or 3rd of July? People who are going to use illegal fireworks would probably not pay attention to the law restricting discharging fireworks to one day. Phil Pokette, 1265 Nebraska Street, Port Orchard, stated he is a fully qualified Nuclear Electrician, is trained in high voltage as well as being qualified to handle hazardous materials. He stated for clarification that he was only TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 21 of 26 representing himself and not the shipyard or union. A number of people he works with have shared with him their anger and disgust over the idea of having a ban on fireworks. He pointed out the last sentence of the proposed ordinance is a final ban on the sale of fireworks and requested Council review that point. Cal Baines, Broadway Avenue, stated he managed fireworks stands for Humdinger for about 10 years and in the early 1980's they were allowed to sell fire crackers and then they were restricted again. Last year it rained on the 4th of July, which didn't offer a very nice time to shoot off fireworks. The Indian Reservations sell the same kind of fireworks that are shot off at professional fireworks shows, which have the potential to kill people if not handled properly. If the safe and sane fireworks are taken away, people will go to another source. to buy products that could include the much more dangerous class of fireworks. He did not think that one week to set off fireworks legally and responsibly is too much to ask. Mr. Waibel stated as pointed out by the gentleman in the audience, the ordinance does need to be amended or no one can sell fireworks this year. Mr. Colvin stated he understood this proposal was not a ban on fireworks, however, the wording in the ordinance appears to mean something else. Ms. Mills explained the first portion of the ordinance addressing the discharging of fireworks from June 28 through July 6 of any year. Then, the proviso addresses limitations for 1993 only and then reverts back to the "all other years" provision. She emphasized the need to read the entire section to understand the overall meaning. Mr. Waibel stated the first revision talks only about use or explosion. Ms. Mills stated to address the concerns that have arisen as to continued restriction on sales following 1993, she suggested the following wording: ...; provided, however, that the discharge of all fireworks in calendar year 1993 shall be restricted to July 4, 1993, only, from 11:00 AM to 11:00 PM and sales of fireworks in calendar year 1993 be prohibited after 11:00 PM July 4, 1993. Mr. Duke pointed out there are additional sections to this ordinance that are in the Bremerton Municipal Code that covers sale of fireworks. The intent of the proposed ordinance is to address only the restriction of discharging and sale of fireworks for the year 1993. He questioned clarification of the use of the word "all" instead of "common" fireworks. If all fireworks are eliminated, that would eliminate public displays, which was not the Fire Department's intent. Mr. Waibel stated that is the intent of TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 22 of 26 the first section but it does not state that. Mr. Duke noted there is a secton on public displays. Mr. Waibel stated if Council was to have a motion on this issue at this time, he felt it should be a motion on concept and to be rewritten on that concept by second reading of the ordinance. President Fitz asked if the ordinance was brought back in one week for a new first reading would that give the City time to have it become effective? Mr. Duke stated no. Kathleen McCluskey, City Clerk, explained if the ordinance is to become effective by June 28th it must be approved on second reading, including changes, at this time. Mr. Duke explained the only change being proposed from last year to this year is changing 1992 to 1993. Mr. Overson stated he suggested deleting everything after the semicolon in Section 1 and let people go out and enjoy their 4th of July celebration and let the adults supervise. He emphasized last year there was a purpose for the one day restriction and there was citizen support for passage of that restriction. This year there is no citizen support and he is already hearing fireworks being discharged. Mr. Johnson stated he lives in a "war zone" with the start up of fireworks being discharged about two nights ago in his neighborhood. Last year, in the middle of all the rain, he was picking debris from fireworks off of his roof. By the time the Police could respond to a call, the fireworks is all blown up. He questioned how do you stop people from shooting it off? Mr. Duke stated there is an attempt being made in California to get rid of illegal fireworks on Indian Reservations. Regardless of the outcome of that court case, he expects it will be appealed to the Supreme Court. Mr. Colvin questioned how many cities have a similar ordinance to what Council is considering? Mr. Duke stated at this time the City of Seattle has banned fireworks and on June 14 the Kitsap County Commissioners are to make their decision on any restrictions within the County area. Bainbridge Island is restricting discharge of fireworks to a 3 - day period and the City of Poulsbo will address this issue on June 16 and their intent is the same as that being proposed for Bremerton. He emphasized the intent is for the County and cities within the County to have the same restrictions. Mr. Neville stated he sees this breaking down as the illegal fireworks are the problem and there doesn't seem to be any way to control or regulate them right now. What is being proposed is to try and control the time limit or time frame in which TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 23 of 26 either common or illegal fireworks can be ignited in the City. People will call 911 when illegal fireworks is discharged and the Police are going to have to respond. Police personnel are overworked and understaffed now and he wished there was a way to get the Fire Department more involved than just responding to or waiting for the fires to happen. He did not support stopping the sale of fireworks to July 4 considering the official holiday is set for July 5, and he felt people should have the right to purchase fireworks even if they have to hold then over for the following year. He could not support the ordinanceas proposed. Mr. Waibel noted the first section of the ordinance still appeared to have an exception to an exception saying that public displays cannot take place during that period of time. He believed the intent was to say "except for noon on June 28th to noon July 6 of any year for a public display authorized pursuant .... ". Ms. Mills explained that was the intent and the language was the way it is because the Fire Department just wants to change the one year time frame this year. She interprets the language to say that public fireworks displays may occur at other times throughout the year by special permit. #1481 M/S/C(Johnson/Waibel) to approve Ordinance on first reading, with the changes after the word "provided" as previously read by the Acting City Attorney which clarified the 1993. And, adding the following sentence to the end of the ordinance: "Nothing in his provision shall make it illegal to have public displays of fireworks when approved by the Fire Department in accordance with the Bremerton Municipal Code. Vote on motion: In Favor: Waibel, Collins, Dawkins, Colvin, Johnson, Fitz Opposed: Overson, Neville Motion carried. 7B - ORDINANCE (FIRST READING) AMENDING THE 1993 BUDGET, #AB93-114 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 as was mentioned in the Agenda Bill, most of the substantive issues addressed in the amendment ordinance have already been before Council as individual items. The following budget adjustment action is TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 24 of 26 requested: 1. Proposing to amend the budget of the Roosevelt Capital Asset Fund to accommodate the Hotel Study. 2. Amended the Municipal Court budget to provide for in - house Probation. 3. Amended the budget of the Utility and Engineering Departments for the Public Works Director and related organizational issues. 4. Amended the Personnel and Civil Service Departments in the General Fund to provide for continued full time management for the period 4-1-93 through 5-31-93. 5. Distributed funds within the General Fund to provide the necessary expenditure authority for implementation of the Management Compensation Plan. 5. Reduced the Tax Anticipation Note, which finances the cash flow of the General Fund, to accommodate the actual size of issued Note as opposed to what we contemplated at the time of the original budget. 6. Transferred excess Beginning Cash from General Fund to the Cumulative Reserve Fund based on Council's direction at the time of original budget approval. 7. Further extended to the balance of the year full time for Personnel Director and Civil Service Officer. Mr. Collins questioned if there was some reason why Budget Adjustments 93 - 6, 93 - 5 and 93 - 2 were not signed.by Fiscal and Budget Committee? Mr. Hanna stated in the case of 93 - 6, the authority level necessary pursuant to the budget modification ordinance ends at the level of the Mayor. As to Budget Adjustment 93 - 2, the issue was brought before the full Council and all necessary signatures were obtained, however,they did not get transferred onto the same form. In regard to Budget Adjustment 93 - 5, that item also came before the full Council and he was confident it would not have gotten there without first being reviewed by the Committee. Mr. Johnson stated the issue did come before the Fiscal and Budget Committee. Mr. Overson stated it was his understanding the Cash carryover was higher than what was reflected in Budget Adjustment # 10. He questioned how did we get to $36,265.00? Mr. Hanna stated as is mentioned in the narrative paragraph on the Budget Adjustment request form the gross overage was modified by TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 25 of 26 three things: (1) a very large cash balance was carried forward due to an inordinate number of vendor payments that were attributable to the 1992 budget actually were represented by cash disbursements in the first week of January. (2) two of the Budget Adjustments contained in #'s 93 - 5 and 93 - 11, wherein we have utilized some of that excess Beginning Cash to provide the necessary expenditure authority to authorize the Personnel Director and Civil Service Officer to be carried full time for the balance of the year. Mr. Colvin asked if he understood correctly that the estimated income is $500,000 less than what was anticipated? Mr. Hanna stated the majority of that adjustment to the General Fund does relate to the reduction of the size of the Tax Anticipation Note. Proceeds of the note were actually $500,000 less than what was budgeted, the offsetting side is the first part of 1994 the City will be called upon to payout or redeem a note that is $500,000 smaller than what was budgeted, therefore, it had no financial impact on the well being of the City. Public comment - none. Mr. Overson questioned when did the Council discuss the Tax Anticipation Note, whether or not to keep it, use it and what the impacts would be? Mr. Hanna stated the Tax Anticipation Note can only be issued under authority of an ordinance, approved by the Council. Mr. Overson questioned if this action was to remove the TAN? Mr. Hanna stated it was being used to remove a portion of it. Mr. Overson questioned if that would put the City in the difficult situation of going in the "red" for some spending? Mr. Hanna stated no, as discussed over the years, the City has tried to take advantage of as much of the authority as granted under the arbitrage portions of the IRS rules. The City did not exercise all of the authority available to us this year primarily because: (1) conditions in the Bond market didn't leave a lot of arbitrage profit to be realized; (2) after refinancing the water/sewer revenue bonds, the City made a commitment that all tax exempt debt would be sold.by bank eligible bases in 1993, and what that means is that we cannot issue in excess of 10 million dollars of tax exempt debt in calendar year 1993. Because we were trying to preserve that capacity, we did not want to issue a TAN any larger than was absolutely necessary to finance the cash flow. Mr. Overson pointed out the budget report provided did show expenditures in the "red" and he automatically assumed we didn't exercise the TAN. President Fitz questioned for clarification if Council received a report TAPE #1114 City Council Reg. Mtg. Minuts June 9, 1993 Page 26 of 26 that indicated the City was in the "red"? Mr. Hanna stated no. Mr. Overson stated he would get together with Mr. Hanna and review that point at a later time. #1783 M/S/C/U(Johnson/Collins) to approve Ordinance on first reading. With no further business meeting adjourned at 8:14. KATHLEEN L. McCLUSKEY, City Clerk EILEEN FITZ, Council President City of Bremerton KLM/EF/me cc: Normal Distribution File/Vault