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HomeMy WebLinkAbout03/25/92 TApE %1005 UNAPPROVED DR~FT ~ CIT .ET NG .I.VTBS NARCH 25~ ~992 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, March 25, 1992, at 5:30 p.m., with Council President Lynn Horton presiding. Council members present: Lon Overson, Wayne Estes, Eileen Fitz, Hank Waibel, Morrie Dawkins, Russ Johnson, A1 Colvin and C.R. "Tiny" Collins. Also present were City Attorney Ian Sievers and Kathleen L. McCluskey, City Clerk. The meeting opened with the Pledge of Allegiance led by Council President Horton and Invocation given by Councilman A1 Colvin. President Horton announced Item 6C - Hiring Of Day Camp Staff had been added to the Agenda; and Council will hold an Executive Session on "litigation" immediately following the Council meeting. CONSENT AGENDA A. Minutes Of Meeting - March 4, 1992 #AB92-074 #0035 M/S/C/U(Waibel/Estes) to approve 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. #0050 M/S/C/U(Colvin/Dawkins) on March 25, 1992, the Council does approve for payment those vouchers included and further described as follows: 146538 through 146543 in the total amount of $36,991.08. COUNCIL MEMBER REPORTS Mr. Overson announced a public meeting sponsored by the Washington State Ferry System will be held at the Bremerton Ferry Terminal on Thursday, March 26, 3:30 - 6:30 P.M. Mr. Estes reported in about 30 days a group of veterans sponsoring location of a Washington State Veterans Memorial in Bremerton will be considering other locations for such a facility. He requested Richard Chrisinger to brief Council on the progress or non-progress of this proposal. Richard TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 2 of 20 Chrisinqer, Commander of VFW Post #3694 and member of the Veterans Of Washington Coalition, explained some veterans have fallen away from supporting the Memorial project and a number of Vietnam Veteran Chapters have folded or are folding. He noted 1992 is the 59th Anniversary since President Roosevelt signed the order to establish the Civilian Conservation Corps, also known as the Tree Army or Soil Soldier. On April 9, 1992, 11:00 A.M. a ceremony commemorating the 50th Anniversary of the Fall of Corregidor and Bataan Death March will be held at Bataan Park. He announced final disposition had not been reached on the USS Hornet and the hope of locating it on the Tacoma waterfront. Mr. Estes stated if Bremerton wants the Veterans Memorial project, it must act soon. He was concerned that there appears to be a concerted effort to not bring in tourism or jobs to Bremerton. Mr. Waibel stated he has seen and agreed with the proposed new ferry rates. Being a user of the ferries, he will be unable to attend that particular meeting. Mr. Johnson reported as a result of the recent discussion on the solid waste contract, there are a number of items that are in active discussion between the City and Brem-Air. He anticipates coming forward with some type of amendment, within the very near future, for changes resulting from that input. Mr. Colvin reported today a representative of the Kitsap County Sheriff's Department gave a talk on "Block Watch" at the Bremerton Central Lions Club meeting. Because of interest by District #1 residents, he requested Chief Del McNeal make a presentation on the City's Block Watch Program during a Council meeting. He thanked the citizens for their involvement and participation in the recent Cancer Fund Drive. Mr. Dawkins noted this will be Mr. Estes last City Council meeting. He wished Mr. Estes well on his new adventure. Mr. Collins sent special "greetings" to Chet Swanson, his father-in-law, who is in the hospital recuperating. He described his father-in-law as a "pillar" of the community . PUBLIC RECOGNITION Jerz7 Reid, President of the Bremerton Area Chamber of Commerce, introduce the 1992 A~med Forces Queen court: Shalan Rockwell/Bremerton High School, sponsor Kitsap Physicians Service; Jayna Kim/Bremerton High School, Sponsor Dunham Glass Co.; Heather Wallace/Bremerton High School, sponsor Lewis Chapel; Kathy C. Paulsen/Olympic High School, sponsor Clarke's Drug; Pauline Monzon/Olympic High School, TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 3 of 20 sponsor Hayward Insurance; Heather Wisler/Olympic High School, sponsor Pacific First Bank, Kristie Lee Bryan/Olymic College, sponsor Kitsap Bank; Deanna Dewell/Central kitsap High School, sponsor Land Title Company of Kitsap County; Ami Lynn Fortman/South Kitsap High School, sponsor Janssen's Charters & Tours; Stacy Strapac/South Kitsap High School, sponsor National Bank Of Bremerton. Mayor Mentor read a letter of thanks from the Lyle Saunders, Drum Major of Tacoma Scotts Pipers & Drums, for the opportunity for their group to participate in Bremerton's first St. Patrick's Day Parade. This past week he had the opportunity to accompany me~bers of the Puget Sound Naval Base Association on a trip to Washington, D.C., to discuss and promote Bremerton and Kitsap County to the Navy. He was pleased with their reception before the Congressional delegation from Washington and the message they received from that meeting was to "not be overly optimistic - be very cautious". Another thing he learned from that trip was the good reputation of Puget Sound Naval Shipyard, Keyport, Bangor, and Naval Supply Center Depot. He displayed a copy of a national magazine titled "MILITARY LIFESTYLE, Feb. 1992, which contained an article promoting Bremerton and Kitsap County. He announced Representatives Peggy Johnson and Tim Sheldon will hold a Town Meeting on Saturday, March 28, 10:00 A.M., in the City Council Chambers. He wished Wayne Estes "Good Luck" on his new life in Chehalis, Washington. Jack Lakoski, Kitsap lake area, expressed concern over a recent change in policy by Dave Baker, City Engineer, relating to approving short plat applications that are not drawn up by a licensed surveyor. He cited the City's Zoning Ordinance, which stated: "all short plats will be prepared by a licensed surveyor unless this requirement is waived by the City Engineer". Mr. Lakoski had submitted an application for a simple short plat, which was denied by Mr. Baker. Upon checking with local surveyors, he found that the cost to have a surveyor prepare the subject short plat would cost him between $400-600.00. He felt this was totally unreasonable that a citizen would have to pay that amount for a simple short plat. He urged Council to not support Mr. Baker's decision to pursue changing the Zoning Ordinance to reflect that a license surveyor would be required to prepared a simple short plat. He did go to Don Pratt, Director Of Community Development, and requested an application to appeal Mr. Baker's decision. At that time, he was told there was no appeal process for that issue and would have to be taken to Superior Court for further review. President Horton requested the City Attorney speak with Mr. Lakoski and review what had TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 4 of 20 transpired. She noted until staff brings an amendment to the Zoning Ordinance to pull out the "waiver" process, the ordinance stands as is. Mr. Lakoski questioned how could he be sure of being notified of such a meeting? Xan Sievers, City Attorney, stated he could forward Mr. Lakoski a direct notice. Mr. Lakoksi stated one additional point Mr. Baker made to him was that legal descriptions change sometimes, which he did not agree with and displayed a legal description on a piece of his property that dated back to 1877. 6A - OVERWATER PARK CHANGE ORDER ~1, ~AB92-057 This Change Order includes Change Order Proposals No. 1, 2, 3 & 6 plus Field Orders No. i & 2 as shown on the attached documentation. These changes have been required in order for the project to proceed on schedule. The contract sum will increase from $1,778,700.00 to $1,885,440.97, including tax. Dave Baker, City Engineer, stated the details of this proposal had been discussed previously and he would standby for any questions. Mr. Overson questioned how accurate were the figures on the front of the Agenda Bill ($1,778,700 to $1,885.440.97)? Mr. Baker stated the contract amount changed to that new figure. Mr. Overson expressed concern that they were not the actual figures. Mr. Baker stated they are the exact figures and included sales tax. He pointed out he was not discussing the project budget but rather the contract. Mr. Waibel questioned if the statement (on the Agenda Bill) "Reduces the project contingency to $183,844.03" was also accurate? Mr. Baker stated no, since Council action last week, the contingency right now, until Council acts on the next Agenda item, would be $245,651.63. Mr. Johnson questioned if that figure was cash in the bank and available to use? Mr. Baker stated that was funding approved by Council the previous week through a Budget Adjustment. If the following Agenda item is approved, the contingency fund would be reduced to $100,000, which would be partially spent for contingencies relating to pipe. Mr. Overson questioned if the budget was "correct" as a result of last week's Council action? Mr. Baker stated the budget will have, following Council action, a $100,000 contingency. Mr. Overson expressed concern that it took several weeks to adopt and amend ordinances, but it took very little time to spend large sums of money. TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 5 of 20 Public comment - none. Mr. Waibel made the following statement relating to Item 6A and 6B: these items have been before Council previously and because of problems were sent back to staff. Now, they are being returned in the same condition, i.e., same cover sheets, without any indication of any corrections made during the interim. He pointed out "Impacts" should have been changed and there are statements that do not reflect current funding sources. #1471 M/S/C/U(Fitz/Waibel) to approve Change Order No. 1 changing the contract sum from $1,778,700.00 to $1,885,440.97, including tax. 6B - CONTRACT AMENDMENT IN SETTLEMENT OF OVERWATER PARK CONTRACT DISPUTE~ ~AB92-058 A dispute has arisen in the interpretation of the Overwater Park contract language regarding payment of pilings. A negotiated settlement has been reached between Quigg Bros. - McDonald, Inc., and the City whereby the City would include a price for the contract estimate for piling based on 59% of the contractor's unit prices for piling. The cost to the City amounts to $145,651.53, plus tax. Mr. Waibel noted this item does state there is no funding available and should now reflect that funding was designated by Council the previous week. He also noted the cost of the contract, if this item is approved, will be $2,031,091.00, and should be reflected in future documents. Mr. Estes questioned if Mayor Mentor could assure Council that this project will have"smooth sailing" from now on and if it will be built within the new budget? Mayor Mentor stated to the best of his knowledge and everyone involved this will solve the litigation and the previous amendment will solve the overage. He hoped there would not be any large overruns in the future. He is anticipating having a dedication ceremony on May 9, if everything goes on schedule. Mr. Estes questioned the status of the Centennial Plaza and would it be completed by May 9? Mayor Mentor explained by May 9th the first section of the project is guaranteed to be done, which would include the plaza, statues, etc. There will be continued construction until September, i.e, Turner Joy gift shop, Harbor Master facility, etc. He anticipates holding the Armed Forces Day Festival on the boardwalk on May 16. Public comment - none. TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 6 of 20 #1673 M/S/C/U(Dawkins/Estes) to approve the contract amendment increasing the total contract price by $145,651.53, plus tax. 6C - HIRING OF DAY CAMP ~TAFF, ~AB92-079 "Acting Camp", the Park and Recreation Department sponsored week long day camp, is scheduled to begin on Monday, April 6, 1992. Currently, four individuals have been hired as camp staff members, but in order to provide fun filled activities and the appropriate level of supervision on the campers, three more individuals must be hired. Jodi Wroblewski, Assistant Parks & Recreation Director, stated the Agenda Bill outlined their need and they anticipate participation of approximately 50 children in this program. President Horton explained due to Council's recent action to place a freeze on hiring, all requests for hiring must come before Council for prior approval. This item was presented on a somewhat "emergency" basis prior to being placed on tonight's Agenda. Fiscal and Budget Committee members were contacted and concurred with the proposed hires. Mr. Johnson stated for clarification, during a Fiscal and Budget Committee meeting the question was raised when did the "hiring freeze" take affect? He explained if offers were made prior to March 18 and accepted by the applicant, it would not have to come before Council. However, if a position is in the budget but an offer has not been made then it would have to come before Council. In this case, Fiscal and Budget Committee did recommend approval. This same policy would apply to contracts made prior to March 18. Mr. Overson cautioned Council's previous budgetary action was based on concern of lack of funds and this proposal will impact revenues available. Ms. Wroblewski explained the day camp participants do pay an activity fee and those fees will cover the direct cost of the program. Mr. Overson pointed out with that type of information Council can then make a more qualified decision and hoped all future items addressing hiring would come forward with cost impact basis. Mr. Waibel pointed out this was an emergency of Council's own making due to action taken one week ago. He did not want staff to rely on the concept of emergencies in the future. He would like more information included on the Agenda Bill, not just the fact that an item had been reviewed by a Council Committee. President Horton stressed that staff will be asked to have Agenda Bills prepared at the time they take the item to Council Committee and have a response from the Committee TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 7 of 20 noted directly on that fo~m. Mr. Johnson stated there are three other similar type personnel requests of a larger nature for hiring summer /part- time help. The Fiscal and Budget Committee directed staff to bring those hire items to the Council on separate Agenda Bills so Council can act on a programmatic level. It was not desired to get into the specifics of how many hours, but rather man days and dollars needed. Caroline Marshall, Director of Personnel, reported she will be attempting to coordinate and give instructions to all of the City managers on the hiring freeze. To her understanding, this would affect all funds of the City and Council wishes to review all employment actions. Public comment - none. %2069 M/S/C/U(Dawkins/Waibel) to approve the hiring of three additional "Action Camp" staff. 7A - ORDINANCE (FIRST READING) REPEALING PERSONNEL POLICIES ON WAGES, HOURSm ~tND BENEFITS IN B.M.C. CHAPTER Z THAT NO LONGER APPLYm ~AB92-075 The chapters listed below were adopted prior to the Public Employees Bargaining Act (Chapter 41.56 RCW) and rulings affecting Cities under the Fair Labor Standards Act. Subsequent amendments have been spotty. Ail these ordinances are pre-empted by collective bargaining, PERS, and FLSA. None are adopted by reference in current contracts and are generally disregarded in employee relations. For example, there have recently been two instances where bargained employee contracts have been inconsistent with these ordinances. Ordinances and policies regulating hours and benefits for non-union management and professional employees who are not subject to collective bargaining remain in effect. The following should be repealed: Chapter 2.36 Salaries Chapter 2.40 Employees - Hours, Vacations, Sick Leave Chapter 2.44 Employees - Retirement and Pensions Chapter 2.52 Employees Expenses (Note: FISCAL & BUDGET COMMITTEE did discuss this item, but not in detail). Caroline Marshall, Personnel Director, explained she had been trying to repeal these Chapters for some time because they no TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 8 of 20 longer applied. Many of the provisions were set 20-30 years ago and subsequent to those years collective bargaining has been into being, the fo~m of government altered as well as the Civil Services Commissions' role in administering. All of the applicable information has been incorporated into labor agreements. Ian sievers, city Attorney, stated there are a couple issues that do not fit into the general description in the Agenda Bill, such as there was one employee section setting office hours for City Hall, which will be adopted in a more administrative Chapter. The chapters listed are outdated and range from the benign to outright illegal actions, i.e., age discrimination act of 1967. He urged Council to eliminate the sections noted. Mr. Johnson questioned where will business hours of City Hall and holidays be listed? Mr Sievers felt the most appropriate chapter for that information would be Chapter 2.4, which is at the beginning of the Administrative title. He noted holidays are also listed in contracts. Mr. Sievers stated that could be included at the time of second reading of the ordinance and that section can be recodified as a new section. Mr. Waibel questioned the term "Secretary Chief Examiner" or "City Commissioner" and if there were other ordinances in the Bremerton Municipal Code (BMC) that refer to individuals in positions that no longer exist? Mr. Sievers stated there are other ordinances in the code that are equally outdated and City departments should be responsible for updating their own sections of the code. He will be reviewing the BMC for such outdated information and started with Title 2. Mr. Waibel stated he was not sure the relationship between Civil Service and collective bargaining was clearly established or addressed in writing. He noted this was not done well by the State nor by the City. Mr. Overson questioned where were the items under Chapter 2.52 listed? Mrs. Marshall stated there is an Administratively Policy administered by the Director of Administrative Services along with an ordinance that is in effect. Mr. Sievers stated it is listed under Policy 3-1, which has to be approved by Council via an ordinance. His intent in removing those two chapters was due to the fact that it is an internal matter between the employee's reimbursement and the Administration and does not affect the public. ~%_~~ pointed out City Council does not approve City Administrative Policies. mr. Sievers stated on matters of compensation they must and there cannot be a change made on the policy unless Council gives its TAPE #1005 city Council Reg. Mtg. Minutes March 25, 1992 Page 9 of 20 approval (Policy 3-1). Mr. Colvin expressed concern that documentation was not provided showing where the cited chapters are being replaced, if applicable. Mr. SieverS noted he could provide that information at the time of second reading of the ordinance. Mr. Overson expressed concern that supplying that information may be a significant task. Mrs. Marshall explained that she had a good working knowledge in this area and had much of the material close at hand to develop a listing. Presi4ent Horton pointed out questions like these should be brought up to staff during Council committee meetings and then appropriate staff should incorporate them into the documentation. Mrs. Marshall suggested taking this item through Fiscal and Budget Committee another time before Council takes action. Public comment - none. Mr. Johnson felt there needed to be an established mechanism to update or eliminate outdated legislation. It is not always clear which ordinances end up codified in the BMC, and he felt it should be addressed so there is a greater understanding as to what is included. Mr. Sievers reported when Book Publishing was handling the City's codifying, many times they called the City and requested what should be included. The City's policy has been that ordinances of a permanent duration go into the Code, i.e, annual Budget Ordinances do not. Mr. Johnson noted the Zoning Ordinance was a type of ordinance that would probably stand alone but be referenced in the B.M.C. Mr. S~evers stated the Zoning Ordinance has been codified and will be placed in the BMC next quarter. He agreed with Mr. Johnson that the Zoning Ordinance was a document that needed to stand alone so that it could be handed out to the public. It is one of the documents that others want to refer to frequently and referred to in Law Libraries. #2876 M/S/C/U(Overson/Colvin) to continue this issue for two weeks giving staff the opportunity to bring back additional information. 7B - RESOLUTION NO. 2384t TO CONSIDER REGULATORY LICENSE FEE~ INTO ONE SCHEDULE FROM INDIVIDUAL 0RDINANCESt ~AB92-07~ It is being proposed to transfer Regulatory License Fees from BMC Title 5 (License Regulations) and Chapters 9.48 (Fireworks) and 10.24 (Oversize Loads) to a consolidated schedule of fees via resolution format and to automatically adjust annual regulatory license fees to reflect any increase in the Consumer Price Index (CPI). Also, the following fees TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 10 of 20 have been increased to reflect more balanced cost recovery from license enforcement: Ambulance vehicles, dancing/entertainment, firework stands, house moving, pawnbroker, pet shops and grooming parlors, special events, taxicabs, mobile food vendors, and Christmas tree lots. Presented to Fiscal and Budget Committee March 10, 1992. Paula Johnston, License Inspector, stated in November, 1991, during budget discussions, Council directed the Director Of Administrative Services to look at the regulatory license fees being charged and to see if there was justification for a rate increase; and to consolidate all of those fees into Resolution form. This item and the following Agenda item are presented in order to carry out the direction given. The intent of a regulatory license is to identify certain business activities inside the City that impact the safety and welfare of citizens at an extraordinary level. The City enforces those regulatory ordinances for those businesses with many different City departments, which costs the City, and regulatory fees go toward cost recovery. Some license fees were identified that could be increased with justification because more City services have been provided in those areas. Out of 3,000 licensed businesses (2,000 based in Bremerton), approximately 100 have some sort of regulatory license. A Comparison Table was provided showing the current fee and proposed fee for those 100+ business; and they were all notified of this meeting and the potential of fee increases. Mr. Colvin's main concern was that the owners of the businesses had been notified of this potential increase. Ms. Johnston stated to the best of her knowledge they had been notified. In the area of fire works stands, the fire works manufacturer is the licensee and received the notification. To her understanding, they in turn notified their sponsors, of which 80% are non-profit organizations. Mr. Collins questioned the difference between these fees and business licenses and why couldn't the business license include a regulatory charge? Ms. Johnston stated a Business License is a license to engage in business activity within the City. It is a privileged license and it is the City's registration format for taxation purposes. Such a license costs $30.00 per year and everyone engaging in business in Bremerton must procure a Business License. A Regulatory License is above and beyond the Business License and it is for certain activities that Council has historically said they TAPE #1005 City Council Reg. Mtg. Minutes March 25, 1992 Page 11 of 20 would like regulated above and beyond the taxing authority base. TAPE ~1006 Mr. Collins questioned if all Veterinary Offices will be required to pay $250.00 per year for such a license? Ms. Johnston explained currently Veterinary offices are shown as "exemption" in the Pet Shop Ordinance. This Resolution does not include definitions but just the business, i.e., kennel, pet shop or grooming parlor. Veterinary clinics are not considered a kennel under the current ordinance. Mr. Collins expressed frustration in that he recently took an animal to a Veterinary office to be kenneled. Ms. Johnston explained Veterinary offices have been historically exempted from kenneling regulations due to their having an active State level of qualifications by virtue of being a veterinarian and the City relies on this in place of a regulatory license. Pet grooming parlors are included under the proposed fee structure. That type of business is not regulated under the existing ordinance, however, the Animal Control Supervisor desires to have them included. A following ordinance covering pet grooming parlors will be brought to Council within one month. President Horton questioned the level of inspection being made by the City for justifying fee increases? Ms. Johnston stated each regulatory ordinance is different and would impact different departments for different issues. President Horton pointed out the need for information explaining the added costs of regulation for those businesses whose fees are being doubled or more. Mr. Collins questioned how many times is a fire works stand inspected? Ms. Johnston stated there is an initial inspection by the Fire Marshal with a follow up inspection when needed before it is operational, as well as complaints that must be followed up throughout out the sale time period. In some isolated incidents, there might be some unsafe use of fire works at a stand area. Ail of these types of concerns impact City services that respond to that highly volatile situation. Also, the Zoning Department must approve placement of fire works stands and this costs staff time. Mr. Collins suggested using the "ticket" system for violations thereby letting that system pay for the service. Ms. Johnston stated many of the proposed fee rates are just a small amount of the cost incurred by the City. She is attempting to get the cost of service and fees for such service a little closer. She offered to come back with a short commentary or cost analysis for each increase prior to Council's action. Mr. Collins questioned if there was any other way to recover such costs? Ms. Johnston stated the most economic way is through a user fee. Mr. Waibel pointed out the proposal is not TAPE ~1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 12 of 20 addressing "violations" but setting up regulations for safety so that violations do not occur. He pointed out Barber Shops are not regulated by the City because the Health Department provides that service. He questioned if it was known what Ordinance the Resolution would be attached to? Ms. Johnston stated the Resolution will be attached to the Ordinance being presented as the next Agenda item and it has all the complimentary appeals and amendments to take the fees out and place them in Resolution form. The fees listed on Exhibit A of the Resolution incorporates the proposed increases. Mr. Waibel expressed concern with the process of putting into effect fees prior to an ordinance being approved. Ms. Johnston explained they needed to be acted upon simultaneously. Mr. Waibel felt it was good to keep fees in line with the cost of living but there are also changes that occur in regulation requirements both by the State and City that would lessen the impact in terms of consumer price and might, in many cases, exceed that cost. He questioned what would the process be in the event Council did not want to just follow the CPI for increases? Ian Slevers, City Attorney, stated at the time this issue was dealt with for Planning fees, it was discussed that staff could prepare budgetary information based on CPI percentages and if Council did not agree with that proposal, then an affirmative Resolution could be prepared to reflect more appropriate percentages. Mr. Johnson pointed out the two "blocks" most often left blank on the Agenda form are "Expiration Date" and "Review Date", which would help trigger updating by the department. Mr. Overson questioned any major impact if this proposal is not approved? Ms. Johnston noted the fees would remain in the ordinance as previously adopted, not be listed together and the City would not see S8-10,000/annually in additional revenues. Mr. Overson pointed out if Council changed this proposal, it would have an impact on the 1992 budget due to the fact that the Mayor presented the intent to increase these fees and did include that increase in the budget. Mrs. Fitz pointed out other cities do not have regulatory fees on some of the businesses being proposed and questioned why such fees are being proposed for those businesses in Bremerton? Ms. Johnston explained every City is different in terms of their recipe of regulatory businesses. In the instance of ambulance service, there may be no license and no fee or a $10.00 fee because a city has chosen to rely on State regulation. For that service, Bremerton has historically not relied strictly on State regulation because the City's Fire Department believes that State regulation is basically non- existent on an operational level. In the area of restaurants, TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 13 of 20 fees from other cites are quite competitive and she could not speak to why other cities regulate. Bremerton regulates dancing and entertainment/liquor establishments because the combination seems to turn to situations that become very rowdy and consequently receive quite a few calls to the Police Department from citizens. Mrs. Fit~ questioned if the City received complaints against pet shops? Ms. Johnston stated yes. Mr. Johnson commended Ms. Johnston for developing this proposal and requesting input from Council members prior to its being finalized into the presentation fo~m. Mr. Waibel questioned other cities fees relating to "house moving"? Ms. Johnston explained other cities do not require a license or fee, but they probably incorporate the regulatory aspect into City services as a whole. Maybe other Planning Departments do not impose their license fees in an area that is regulatory, similar to the City's whereby it is included under Title 10 instead of Title 5 Regulatory Licensing. Dick Maurice, President of Rivero Incorporated - E1 Camino Restaurant/Callow Avenue, stated he had been in business for 14 years. If the City has a budgetary problem and is looking for additional revenue to run its system, he supported raising the cost of business licenses to $50.00 per year for all business. The amount of revenue generated by the small, singled out group of businesses proposed would only bring in $8-10,000 annually and he felt it was time for everyone to "pitch in" and help the City. Gra¥1ee Johnson, Bremerton Ambulance Company, addressed the issue of the Ambulance Attendant/Driver fee increasing from $10.00 to $50.00 per year. After leaving private services out in the cold for three months waiting for a modest increase in their rates amounting to less than 6% across the board, the City proposes to make up for poor planning by increasing ambulance company employees'license fees by 400%, a fee which they are required to pay prior to being eligible for hire. In her opinion, this is not only inappropriate but ridiculous. She requested Council to modify the EMT licensing rate downward to a more reasonable figure consistent with the City's more reasonable customer rate increases required of the providers and more consistent with what an EMT seeking first time employment is likely and able to afford. Kathleen McCluske¥, City Clerk, read into the record a letter from James W. Wooley, Fireworks Chairman Chapter 169, Vietnam Veterans Of America Inc. Mr. Wooley protested the proposed TAPE #1006 city Council Reg. Mtg. Minutes March 25, 1992 Page 14 of 20 900% increase for fireworks permits. This would adversely impact local non-profit groups who use this method of fund raising. He stated his group would support "actual costs of permits and inspection" but not at the rate of 900%. Mr. Overson requested clarification on "ambulance driver" costs. Ms. Johnston explained "ambulance driver" was listed in Exhibit A of the Resolution but accidently not included on the comparative sheet. Ambulance drivers have been charged $10.00 per year for a license since 1982, and when Cab drivers were increased from $10.00 to $25.00 in 1988, ambulance drivers were not addressed at that time because they were part of an old Resolution and not part of Title 5. Now, it is proposed to set that fee at $50.00 per year along with Cab drivers. This fee increase is needed because of the extensive background information provided by the City for those positions. The City has an immediate liability and exposure liability when issuing licenses. This applies especially to driving - cabs and ambulances. Mr. Overson pointed out the income for those positions is not included in the resolution document nor the budget. Ms. Johnston stated it is her understanding it would be included in the $8-10,000 revenue source. Mr. Estes stated considering today's economic climate, businesses have to be courageous and many are on verge of going out-of-business. He questioned if raising $8-10,000 for the City was really worth it. He supported Mr. Maurice's suggestion and felt a gradual 10% increase per year would have less of an impact than what is being proposed. Mr. Collins supported Mr. Maurice's idea as well, and questioned if that would spread the "hurt" around more equitably? Ms. Johnston stated that was an entirely new issue - this exercise was to match costs to regulatory fees. When the City's Business License fee increased from $10.00 to $25.00 and then to $30, it did adversely affect many small businesses not included under the regulatory license. There are many cities, such as Tacoma, who increased their Business Licenses from $5.00/one time license to $75.00 all at once. If Council wished such a proposal, she would provide one. Kathleen McCluske¥, City Clerk, stated the problem with that theory is that the cost would be spread among people who are not the ones requiring the enforcement. When the proposal was developed, the intent was to not include the thousands of businesses who do not generate additional regulation for the City, but rather only those that have escalated use of City services as a result of the operation of their business. Mr. Waibel stated as a point of clarification, the Mayor did TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 15 of 20 present proposed fee changes and Council did say they wanted a total review of such fees. He did not understand why some Council members were now resisting requiring businesses that used additional City services to pay their fair share of those costs. He urged Council to support this proposal because they asked for it and the City needs it. Mrs. Fitz stated those business who are creating the problems should be made to pay for those services and those not causing problems should not be penalized. She felt it would be more equitable if a business was charged a fee every time City services were used beyond the normal level. Ms. Johnston pointed out as Mr. Waibel previously stated, regulations are not all a negative response and the purpose is to regulate an industry overseeing it for public health/safety/welfare purposes. Mr. Colvin pointed out some of the proposed fees had not been increased in 22 years. He questioned if adult movies were regulated? Ms. Johnston stated the City had never regulated adult movie theaters. Mr. Colvin questioned the wording "State Pre-emption"? Ms. Johnston explained that wording referenced massage parlors and security guards.., in July 1991, the State pre-empted regulatory powers over those two industries. Mr. Colvin questioned if there was a disturbance at such an establishment, who would respond? Ms. Johnston stated the City would still have to respond. President Morton questioned if Ms. Johnston felt there should be other businesses listed that were not already included on the list? Ms. Johnston stated as License Inspector, she would recommend that a review be made of adult bookstores and adult theaters. Mr. Waibel stressed the proper procedure would be to pass the rate schedule after the Ordinance was acted upon in the next Agenda Item. #1197 M/S/C/U(Waibel/Overson) to table this item until after hearing and acting on Item 7C. ?C - ORDINANCE (FIRST READING} TO TRANSFER REGULATORY LICENSE FEES FROM BMC TITLE $ LICENSE REGULATIONS ]tND CHAPTERS 9,49 FIREWORKS AND 10.Z4 OVERSIZE LOADS TO RESOLUTION FEE SCHEDULE, #AB92-077 In order to transfer regulatory license fees from individual ordinances to a resolution fee schedule, all affected chapters of the BMC need to be amended. This ordinance accomplishes this by either repealing entire sections of license chapters that solely address license fees or amending sections where fees and other license terms are discussed. Also, Massage TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 16 of 20 Parlor and Security Guard regulatory licensing is repealed due to State preemption; and there is a new chapter on Christmas tree lots added to Title 5 License Regulations. Presented to Fiscal and Budget Committee March 10, 1992. P&ul& Johnston, License Inspector, stated the proposed Ordinance is a consolidation of all the affected regulatory ordinances...everything in Title 5, plus fireworks under Title 9 and house moving under Title 10. There were a couple areas amended that did not reference license fees and were strictly housekeeping items either correcting errors or taking out wording that had become outdated in relation to other Titles in the BMC. Mr. Overson questioned if "license renewal" was required each year? Ms. Johnson stated only in specified regulatory licensing ordinances. Mr. W&ibel questioned if part of the motion should include direction to staff to look into possible regulations of adult bookstores. Mr. Johnson stated he would not support including such wording due to the issue of defining "First Amendment freedom rights". He would like to tackle this issue, however, it is a huge issue and could not resolved for many years to come. Mr. W&ibel suggested using the words "all theaters". Presi4ent Horton suggesting using the words "movie theater for profit". Mr. Johnson emphasized this was just such an issue that the ALCU would jump on and win. Rick Maurice, Manager E1 Camino Restaurant, stated he felt it was ridiculous to single out a number of businesses to regulate and impose a large fee than other businesses. He questioned why didn't the City include the Kitsap County Fairgrounds because of the number of fights that have taken place at that facility? He questioned if this proposal was based on a "money problem? He supported the suggestion that Business License in general be increased. Alan Reid, Bremerton Ambulance, questioned the purpose of moving the regulations from one Title to another. He hesitates to buy off on it because it comes down to a money issue. Currently, separate industries are regulated separately addressing individually rates and the fee is part of the overall regulation. He did not want to see that changed or broken out and tossed into a schedule as a revenue raiser. Mr. Waibel stressed Council was addressing the issue of TAPE #1006 city Council Reg. Mtg. Minutes March 25, 1992 Page 17 of 20 putting such rates in one place as well as providing for an automatic annual increase. It is a money issue due to the City having to provide staff to provide the regulation and those costs go up every year. He believed the automatic increase will be less of an impact than periodic "big jumps". He stated it behooves Council, next year, to know what the regulations are for each of the businesses being regulated and whether or not those need to be changed, increased or decreased, for the following year. Mr. Collins stated last week he informed Council and citizens the percentage of property taxes collected that actually goes to the City. The City has no way of increasing property tax and no way of adjusting that tax other than by what the Legislature allows. If Council is set upon raising money, then he felt the need to use the only alternative - increasing the overall Business License; and the proposed Ordinance was not necessary. Mr. Dawkins supported Mr. Collins position on this issue. Mr. Colvin pointed out for Mr. Maurice's benefit that the City has no jurisdiction over the Kitsap County Fairgrounds. Mr. Johnson emphasized there was good reason to move the fees into one schedule, which would facilitate tracking in order to meet current costs of City services provided. Mr. Overson pointed out the purpose of this Ordinance is to transfer regulatory license fees from individual ordinances to a Resolution Fee Schedule so they can be reviewed. President Horton emphasized an affirmative vote on this issue would not be automatically agreeing to increasing fees as proposed on prior Agenda item. Mr. Walbel cautioned affirmative action on this Agenda would eliminate all fees and if the prior proposed Resolution is not passed there will be no regulatory fees. #1496 M/S/C/U(Johnson/Colvin) to approve the ordinance, on first reading, relating to business regulatory license fees and amending Chapters 5.03, 5.04, 5.10, 5.12, 5.16, 5.20, 5.22, 5.36, 5.38, 5.42, 5.46, 5.54, 5.76, 5.96, 5.98, 9.48 and 10.24 of the Bremerton Municipal Code, adopting new Chapter 5.25 and repealing Chapters 5.68 and 5.92. MOTION ON ITEM %2093 M/S/C(Waibel/Colvin) pass Resolution %2384, amending regulatory license fees TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 18 of 20 Vote: In Favor: Overson, Waibel, Colvin, Johnson, Horton Opposed: Fitz, Collins, Dawkins, Estes Motion carried. ?D - ORDINANCE (FIRST READING) ~ENDING BUSINESS LICENSE/TAXES 5,02 TO REDEFINE TELEPHONE UTILITY TAX DEDUCTIONS, ~AB92-079 There are two amendments being proposed for the Business License/Tax Ordinance 5.02: 1) "Competitive Telephone Service" (which is a deduction from utility taxation) is being redefined to exclude cellular telephone utilities so that we can fully tax them at the utility tax rate of 6%; and 2) The tax deduction for bad debts for telephone utilities is being repealed so that telephone utilities are taxed 100% of gross billings as are all other utilities. Presented to Fiscal and Budget Committee March 10, 1992. Paula Johnston, License Inspector, explained the proposed two amendments tighten up what is taxable for telephone utilities. Regarding "deduction for bad debts", it was an oversight on her part when she consolidated all utility companies in Tax and License Ordinance Chapter 5.02. At that time it was specifically written that bad debt deductions would not be viable deduction for tax reporting, but telephone utility language had its own little deduction written into it and got pulled over into Chapter 5.02. She is correcting that by eliminating that language so the City can stop allowing that deduction for the telephone companies. This would amount to an annual increase of tax revenue from telephone companies of about $12,000. The first amendment is technical in nature. The cellular phone companies looked very closely at the City's definition of a "competitive telephone service", which is not a utility and they put themselves into that category under the City's old language because we did not technically pull them out - we were trying to say that people who had apparatus and serviced that apparatus were telephone maintenance companies and not under regulation of Title 80. Those were the people she was trying to exclude from utility, however, because the City did not originally tie the definition to that apparatus equipment maintenance, the cellular phone companies grabbed on to that and saw it as a loop hole. She transferred telephones over to Chapter 5.02 and included cellular phone networks in definition of "telephone business", which is a utility. But, TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 19 of 20 at that point she was unaware of the loop hole they were trying to use. The proposed Ordinance tightens up regulations so that the cellular phone companies will not have any kind of objection to coming on line as a utility and paying 6% verses 2/10 of a percent on gross proceeds. Mr. Waibel noted they may object but they will not have grounds to object. Ms. Johnston stated that was correct. Mr. Johnson questioned if beepers would be included? Ms. Johnston stated no. Public comment - none. Mr. Collins suggested using "communications service" rather than "competitive telephone serve". Ms. Johnston explained competitive telephone service does not fall under the definition of what is taxable for the City. If broadening out tax base is desired, then attention should be given to telephone business (item #2). #2691 M/S/C/U(Overson/Collins) to approve the ordinance, on first reading, and to include Mr. Johnson's concern regarding beepers and Mr. Collins concern relating to "communication service". Motion carried. FAREWELL TO COUNCILM~N ESTES President Horton presented Councilman Estes with a plaque stating: "To Wayne Estes, a man who chose a suit of clothes to carry him forth on a quest of right for those caught up in the housing plight - Councilman District %5, 1-1-1990 to 3-26- 1992" Mr. Estes thanked his fellow Council members for honoring him. He felt the Housing Code project was the most beneficial thing to happen in Bremerton for a number of years; and, it will have a long range effect by providing a tool for the Fire Department, Planning and Building Departments to take care of slum landlords and abandoned houses. He also was pleased that the Dangerous Animal Ordinance was passed for the benefit of the citizens of Bremerton. He felt he was more of a "country boy" rather than a "City" person and believed his replacement will be someone who understand city living. Mr. Johnson stated his appreciation of Councilman Estes' service and particularly on the number of accomplishments he achieved within a short time frame of 2+ years, such as the TAPE #1006 City Council Reg. Mtg. Minutes March 25, 1992 Page 20 of 20 Housing Code, Ivy Green Cemetery improvements, working with Veteran groups, etc. Mr. D&wk~S stated he appreciated Mr. Estes' efforts for improvements at Ivy Green Cemetery. ~stated he enjoyed working with Councilman Estes and will miss his presence and wished him well on his next adventure. Mr. Overson stated he enjoyed working with Councilman Estes on the Fiscal and Budget Committee and wished he had stayed longer once he stepped into the position of Chairman of that committee. With no further business meeting adjourned at 8:35 p.m. KATHT,REN L. M ity Clerk '1 President 1 y of Bremerton KLM/LH/me cc: Normal Distribution File/Vault