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HomeMy WebLinkAbout09/04/91TAPE #951 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES 1991 #0037 #0048 SEPTEMBER 4, 1991 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4TH Street, Bremerton, Washington, Wednesday, September 4, 1991, at 5:30 p.m., with Council President Lynn Horton presiding. Council members present: Lon Overson, Wayne Estes, Spencer Horning, Hank Waibel, C. R. "Tiny"Collins, Morrie Dawkins, A1 Colvin and Russ Johnson. Also present were City Attorney Ian Sievers and City Clerk, Kathleen L. McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Horton and Invocation given by Reverend Jim Hill of Neighborhood Christian Center. President Horton announced Council would hold an Executive Session immediately following the Council meeting to discuss "litigation", per Chapter 42.30,110(1)(i). CONSENT AGENDA A. Minutes Of Meeting - August 21, 1991, #AB91-222 B. Bid Award Recommendation - Ductile Iron Pipe - Awarded To Pacific States Cast Iron Pipe For The Amount Of $56,864.47, #AB91-223 M/S/C/U(Waibel/Dawkins) 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. M/S/C/U(Colvin/Dawkins) on September 4, 1991, the Council does approve for payment those vouchers included and further described as follows: 135727 through 135840 in the total amount of $86,476.99. COUNCIL MEMBER REPORTS Mr. Johnson reported he and his wife will be expanding their recycling activities to include "worms" to dispose of "wet" garbage. He noted the County Recycling Coordinator has available free plans for making a worm box and worms are TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 2 of 18 available in the County. He was recently informed that several local service organizations, such as Goodwill, VFW, Lions Clubs, were having problems keeping their locations for recycling containers at commercial shopping areas. A number of these organizations have been asked to move out of those areas. He urged local businesses or landowners, who would be willing to work with such organizations, to call the Council office and he would coordinate matching them up. Mr. Colvin reported on a recent visit to Mobile, Alabama and New Orleans, which was prompted by an invitation to participate in his son-in-law's family reunion. His son-in- law is the youngest of 16 children, who were raised in a very poor farming community. He was pleased to announce that this family produced many professional individuals and that it showed what could happen when such determination is put in motion. He attended a Mobile City Council meeting and presented a #1 pin to the Mayor of that city. He also shared ideas with this group as well as their local citizens. He received a commemorative plate from the Mayor of Mobile. During his visit, he toured the USS Alabama, which is located in a park that attracts 300,000 tourist a year. Upon returning to Bremerton he learned that the USS Missouri would be coming back to Bremerton. He viewed this as another positive step in attracting more tourist to this area. He enjoyed the Blackberry Festival and particularly enjoyed riding in the parade. On that day, he also visited the Farmers' Market for the first time. He announced Kitsap County Auditor Karen Flynn will conduct training for Deputy Voter Registrars on September 26, 1991, 7:00 PM, at the Kitsap Regional Library. Anyone interested in participating in this training or obtain additional information may call 377-7218. Mr. Dawklns reported he had a very good time at the Blackberry Festival. The weather was outstanding for this event as well as for the ribbon cutting ceremony for the overwater park project on Tuesday. Mr. Collins found the Blackberry Festival's many food booths to be tempting and was pleased with the large crowd that gathered for this event. He announced Puget Sound Air Pollution Control Agency (PSAPCA) will hold a televised public hearing on September 12, 9:30 AM, in the City Council Chambers. Another PSAPCA public hearing is scheduled for September 26, Room A Center House at the Seattle Center. Discussion on burn ban areas and wood stoves will be held during the public hearings. He announced Animal Control's Hotline phone number is 478-5366. TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 3 of 18 Mr. Overson reported on Tuesday, September 3, the City officially kicked off the construction of the overwater park. He pointed out the Farmers' Market will continue to be located on the waterfront even though there will be construction going on. Mr. Estes reported on Tuesday, September 3, he conducted his third tour of the Pre-Release Facility and those participating on that tour were: Mike Phillips, Editor of The Sun, three Council candidates - Jeff Asher, Roger Oraker and Chuck Laubach. He offered to schedule additional tours of the Pre- Release Facility, even on Sunday, if anyone is interested. Mr. Morning reported on the following actions/information obtained during the Executive Planning Council meeting this date: (1) Kitsap Transit is preparing to go out for bids for Paratransit Services (copy of document to be in Council office). (2) Kitsap Regional Planning Council discussed the Transportation Improvement Plan (TIP) programs that have been scheduled for the cities within Kitsap County and the County. The TIP will include three projects in the City of Bremerton, two on Kitsap Way and repair of Manette Bridge. (3) Burn Bans - an information sheet was provided which ~id show that Kitsap County was included in the burn ban area. (4) Kitsap County did receive some growth management funds, which will provide funding for the Regional Council in months and years to come. He noted unfortunately the requirements that go along with growth management are significantly higher than grant funds received. (5) Mayor Mentor brought before the Executive Planning Council a recommended change to membership representation relating to a procedure of replacing a representative who became incapacitated and had to vacate their seat on the Planing Council. The Council's response to that proposal was of a positive nature. Mr. Johnson questioned if Kitsap County was in a burn ban right now? Mr. Collins stated no - the press release states that public input is sought during two County meetings of the PSAPCA Board on whether the bans should apply only to densely populated areas and areas prone to smoke build up or to whole counties as in the past years. The map that Mr. Horning referred to was similar to the map that PSAPCA staff started working from, but it is not set as to whether all of Kitsap County will be in any kind of a burn ban when one is called. Mr. Morning noted that Governor Gardner had recommended that Kitsap County, as a whole, be included in such a ban. Mr. Collins emphasized that the PSAPCA Board would make the final decision on that issue. Mr. Johnson questioned if the Executive Planning Council discussed growth management as it related to urban boundaries, etc.? President Morton stated there was a TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 4 of 18 separate committee appointed this date (Mr. Horsley, Mr. Granato, Mr. Mitchusson and Mrs. Horton) to develop an overview of what the policy for growth management should include. This would be the first step in achieving that goal. Mr. Johnson noted he was very skeptical about the process and felt that those policies needed a lot of staff input and public discussion. President Morton reported there was also discussion by a representative of the League Of Women's Voters that their organization would be studying the growth management issue and public meetings would be held to inform the public. Mr. Johnson questioned if this committee would be replacing any negotiations between the City and County? President Hotton stated no. Mr. Homing noted the newly appointed committee would be making recommendations how to go forth to get it out for public discussion. Because regional issues were difficult to handle in a once a month meeting, they will now be meeting two days each month starting in November. Mr. Waibel also attended the Blackberry Festival and he and his daughter Holly tried to uphold the Council's #1 position in the children and Parents' Obstacle Race, however, they only came in 2nd place. He found it surprising that not only the downtown was full of people but the Farmers' Market was as well on that day. President Horton reported she also attended the Executive Planning Council meeting this date and the Board of Health discussed the Dyes Inlet Action Plan for the clean up of Dyes Inlet. Council will be scheduling a Study Session on this issue as part of the regular October Study Session. At that time, a member of Kitsap County will speak on the action program and a copy of the action plan will be left in the Council office for review. The emergency management of CenCom Board Of Directors met and discussed the upcoming 1992 budget. A copy of that budget will be routed to Council members and she requested any comments be made to her, Mr. Horning or Mayor Mentor by next Tuesday. The proposed budget is calling for additional staffing provided there is an additional console installed. If another console is approved, it would require another frequency because the currently frequency is already used up. On the September 17 Ballot, Proposition #1 to continue Enhanced 911 in Kitsap County will be before the voters. This is not a new tax. PUBLIC RECOGNITION Mayor Louis Mentor announced a news article headline: "Pop's Inn" took 3rd place at Nationals. It was thought to be the TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 5 of 18 highest finish ever by an adult league Bremerton softball team. The ground breaking ceremony for the overwater park went very well with good representation from many elected officials. On Tuesday, September 3, he attended the United Way Kick-off, which is being chaired. by his wife, Paulette. In reference to the Blackberry festival, he was pleased with its success, including the excellent attendance at the Farmers' Market on that same day. He acknowledged the assistance of crewmen off the USS Carl Vinson and USS California for helping set up and take down equipment for the festival. Del Knauss, Olympic Avenue, stated he felt it was arrogant of Councilman Estes to go out and solicit the location of a Pre- Release Prison facility when that was not the Council's job. He expressed concern that he had not received answers to questions he had previously posed to Mr. Estes. He did not feel he was adequately responded to by the City Attorney in regard to the nine questions he had posed to the Mayor and Council relating to Roosevelt Field/Olympic College. He again stated those questions and made personal comments relating to each question. In reference to the Mayor's proposed new entrance into Bremerton, Mr. Knauss expressed concern that the Mayor had lead everyone to believe the State was pushing for this new roadway. He stressed this was not true and that it was actually Mayor Mentor who was pushing the new entrance. President Morton announced Council will be holding'a Study Session on September 9, and a portion of that meeting will be set aside to discuss the new proposed entrance into Bremerton. 6A - AUTHORIZATION TO SIGN GRANT AWARD CONTRACT WITH FEMA TO PROVIDE A RESIDENTIAL FIRE SPRINKLING TRAILER DEMONSTRATION PROGRAM, #AB91-224 The Federal Emergency Management Agency has awarded the City of Bremerton Fire Department a Residential Fire Sprinkler Trailer for demonstration and educational purposes. This contract provides $10,000 to develop and implement programs with the trailer. Council authorization is required for contract signature. Connie DevaneV, Grants writer, pointed out the grant was in the sum of $10,000 and would provide funding for the City's Fire Prevention Officers to go out into the public and put on demonstrations for education and prevention, sharing the benefits to installing residential sprinkler systems. Public comment - none Mr. Johnson questioned how much additional labor will be required to fund this program? Ms. Devaney stated there is TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 6 of 18 already a staff person available to work in this area. Also, it was her understanding that at the time of demonstrations there needs to be a fire truck available as a back up in the event something goes wrong with the demonstration. Mr. Johnson questioned if the Fire Department budget would increase just because the City has acquired the trailer and does the City have something other than a Fire truck to pull the trailer? Lori Jones, Fire Prevention Specialist, explained the trailer will be pulled by a Fire Department pickup truck and she will be taking on the responsibility of running the demonstration. At the time of the actual demonstration, she would call in a Fire truck to standby until the demonstration was concluded. Mr. Estes questioned where would the demonstrations be held, in parking lots or neighborhoods? Ms. Jones explained part of the grant funding will go to remodel the trailer, making the demonstration more visible from the outside. In this way if someone did not want to sit inside the trailer while it was being demonstration they could watch the activities from the outside. Once the trailer is remodeled it will be available for neighborhood demonstrations and anyone can call her office (478-5393) to schedule such a demonstration. #1570 M/S/C/U(Waibel/Estes) to authorize signature of attached contract. 6B - INTERGOVERNMENTAL COOPERATIVE AGREEMENT BETWEEN CITY OF BREMERTONAND CITY OF ENUMCLAW FOR THE PURCHASE OF A BACKHOE, #AB91-225 The approved Utility budget for 1991 provided for the purchase of a backhoe for infrastructure improvements and maintenance activities within the Utility's service area. Attached for Council Consideration is an Intergovernmental Cooperative Agreement between the City of Enumclaw and the City of Bremerton for the purchase of a backhoe utilizing the' City of Enumclaw's purchasing contract. Public comment - none. Bill Duffy, Utilities Director, explained the existing backhoe had over 4,000 hours of use and it will be semi-retired to the watershed and used to replace roads, etc. The new equipment will be used to install water mains, etc., in the City. Mr. Overson questioned why the backhoe was not purchased earlier in the year since it was already in the 1991 budget? Mr. DuffV stated generally on their major purchases he #1734 TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 7 of 18 monitors the water sales to see how revenues are coming in to fund such purchases. If for some reason funds were short then he could choose to delay such a purchase. President Horton questioned if there was some sort of network where cities published when they were building perspectus for equipment? Mr. Duffy stated it was mostly by word-of-mouth and generally he purchased equipment off the State Bid List and the City's Purchasing Agent receives copies of that list each year. This list includes vehicles, lighter vehicles and equipment, etc. There are three or four suppliers of heavy equipment and usually he would contact them to find out if they had bid on items for other cities. M/S/C/U(Dawkins/Colvin) to approve the Intergovernmental Cooperative Agreement between the City of Enumclaw and the City of Bremerton for the purchase of a backhoe for infrastructure improvements and maintenance activities and authorize the Mayor to execute said agreement subject to City Administrative Policies and Procedures. 6C - PORTICO CONTRACT AMENDMENT - CONSTRUCTION MANAGEMENT OF OVERWATER PARK PROJECT, #AB91-226 With work beginning on the Overwater Park there is a need for construction management on a full time basis and continuing design/re-design, as needed to satisfy local, state and federal requirements. The proposed contract with the Portico Group will provide, as needed, professional services of architects, structural, civil, electrical and geo-technical engineers as well as a materials testing laboratory. This contract amendment adds $195,000 to the existing contract for $92,964 for a total of $297,964. Dave Baker, City Engineer, stated this is an amendment to the Portico Contract to provide for administrative services during the project, which include but not limited to: testing (concrete and pile), geo-technical services, review by Architect and Structural Engineer for design of any changes deemed necessary. This amendment is an extension of the existing Portico contract, which was for design of the project. The project was designed and did go out for bid, which included some changes to their design necessitated by the Department Of Fisheries requirement and there are also administrative costs that will be incurred. Public comment - none. Mr. Estes stated a few weeks ago Council passed a contract TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 8 of 18 amounting to approximately two million dollars on this project and at that time he remembered Mr. Baker stating no additional funds would be required and did not understand why Mr. Baker was back asking for additional funding. Mr. Baker explained the contract approved a few weeks ago was for a contractor's contract for the construction of the project. At this time, there is a need for inspection services, geo-technical services, etc., that go on during the contract and would come under an amendment to the existing Portico contract. Mr. Estes stated it was his belief that Council had been getting false start of construction information from the Mayor; and he learned the City was not keeping on top of getting the proper permits in a timely manner for the project. He believes Council should be kept up-to-date on the major construction projects. Mayor Mentor explained Council approved a total funding package in the amount of approximately 2 million dollars and out of that total package came construction, design, inspection, etc. The funding being requested is all within the originally approved funding of the project. This request will not change the total cost of the project as previously approved. Mr. Johnson questioned what experience did Portico have in construction/project management? Mr. Baker stated Portico has a good background in construction project management. They have done a number of similar type projects overwater and on land. Mr. Johnson questioned the location of previous projects managed by Portico? Mr. Baker stated Portico had constructed projects in many northwest locations, including Kirkland and Seattle. And, as the City Engineer, it is his job to determine whether or not Portico qualified for this type project. Mr. Johnson stated he had some real reservations as to Portico's qualifications...construction drawing were promised June of 1990 and as of the latest minutes of the pre-construction meeting location of the Harbor Master facility had not been determined. Mr. Baker stated for clarification that Portico was not designing the Harbor Master building nor the Turner Joy gift shop. Mr. Johnson expressed great concern that due to delays the Turner Joy has no access to the shoreline and PSNS has no place for placement of their commemorative statue for their Centennial celebration; and now the administration was looking to expand Portico's contract for management of the project. Don Pratt, Director of Community Development, stated he is the Project Manager during the design of the overwater park project. Portico was not hired to design the Harbor Master's office nor the Turner Joy gift shop. They did design a piece of the Centennial project but were not hired to do it TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 9 of 18 all. Those three outside contractors coming in and doing their design on top of the platformthat Portico designed was one of the reasons for some lingering design coordination that has to take place. The City has asked Portico to work with the separate contractors designing separate projects and coordinate interface staff, Which was not in the scope of the original design contract. Mr. Johnson stated he firmly believed that the delays had little to do with obtaining permits and more likely due to the 18 months it took to come up with a design. He found it totally frustrating trying to get the project completed. Apparently the last step to be done on the project will be the access to the Turner Joy. Mayor Mentor explained if the boardwalk was built today, no tourist would be able to board the Turner Joy, because the preparation process is not complete. He emphasized how much he wanted this project to be on schedule, however, there was nothing he could look back on that he'd wished the City had done differently. Mr. Johnson stated maybe if Council had frozen the design that was drawn two years ago the project would have been done. Mayor Mentor noted the project was not started until March of 1991. Mr. Overson expressed concern as to the exact amount of compensation being requested considering the use of t~o different amounts in the supporting information. And, it was his understanding that any redesign of the project was included in the original contract. Mr. Pratt stated the original Portico design explicitly left off construction management and he recalled discussing that issue with Council's Operation Committee. The original contract called for Portico to bring the project within the estimated funding set forth by the City and there was at least one full redesign at the schematic phase and several partial redesigns beyond the schematic phase when estimates were received that came in higher than funding available. The design was done and the project was bid out, with the project coming in under the amount of money Portico designed it to. The redesign in the amendment to the contract is based on the need to coordinate some of the externally designed projects and some of the lingering permit work that has to go on now. Mr. Colvin questioned the wording "additional compensation", and if additional funds will be sought in the future? Mr. Baker stated no, what that means is that the City is simply identifying the approximate estimated cost that it will cost for testing laboratory work and geo-technical people. He emphasized he would rather come before Council and request too much funding at the beginning and return any unused portion than to have to come two or three times and request additional TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 10 of 18 funding. Mr. Dawkins questioned if he was correct in his understanding that Mr. Baker would oversee this project for the City? Mr. Baker stated yes. Mr. Waibel stated in reviewing the compensating and adding the figures there is a $3,200 difference and questioned if there was a reason for that difference? Mr. Baker stated yes, the first figure, $95,000, was an estimate and the figures in the document have been revised with the contract. Mr. Waibel questioned for clarification if the $291,164.00 is actually what is being requested at this time. Mr. Baker stated yes. Mr. Morning noted this project started in excess of three years ago, which shows how difficult government can be when it deals with itself. He will support this request and he believes it will greatly enhance the waterfront and he was sorry it didn't happen earlier. Mr. Estesquestioned what were the lingering permits Mr. Pratt referred to? Mr. Pratt stated the City does have all the necessary permit, however, there are lingering design coordination that needs to take place. Permits are in place for the Harbor Master's office and the Turner Joy gift shop in a "guest form" configuration. There is some reconsideration of the Harbor Master's office as to what it will look like and if it is not built in the exact design, Council may see a revised Shoreline Permit. The gift shop has not been designed yet, there was only a guess as to what it may look like and if the final design turned out differently than previously thought, there may be the need for a revised Shoreline Permit for that project. Mr. Estes questioned if this project would involve the Federal government in any way and was it possible to by- pass the State? Mr. Pratt stated there are some design options that may involve the Corps Of Engineer Permit. There are four or five projects happening on the waterfront. The boardwalk is under way and what is being requested for approval at this time would be funding for the management of the boardwalk project. What the Port of Bremerton chooses to do with the Harbor Master's office or Historic Ships chooses to do with the gift shop the City has very little control over. Mr. Estes questioned if there were any more obstacles? Mr. Pratt stated the City has the budget, permits and contractor on site and he believed the project is under way. Mr. Collins pointed. out Congressman Norm Dicks did a lot to TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 11 of 18 "uncork" any hold up in Washington, D.C.. President Hotton stated many months ago she talked about hiring a Project Manager for the City. She felt had the City hired someone in that capacity, the $195,000 could have covered the annual salary of that person for three years. She suggested getting a Project Manager position funded in the 1992 budget and once they were employed to possibly hand- off this project to that person at that time. She has requested Mayor Mentor to provide staff updates, on a regular b~sis, on the progress of time frames and budgetary aspects of all major projects in the City. She concurred with Mr. Estes that Council needs to be kept more informed on projects of this magnitude. Mr. Johnson stated he did not feel comfortable awarding this expanded contract to the contractor, but if approved, he requested regular performance updates on their performance. If the City hired a Project Manager, he would not hesitate to turn over the waterfront project from Portico if that project was not moving along in a timely manner. He did not want to go through another summer season or Armed Forces celebration without the facilities. Mayor Mentor stated Council would be provided a flow chart showing the progress of the project. He noted for clarification the Harbor Master's Office would not be placed on the pier. President Hotton questioned if the Mayor had any idea when the location of the Harbor Master's office would be nailed down? Mr. Pratt explained where the Harbor Master's office will be constructed does not affect the construction of the boardwalk. Mr. Johnson pointed out it would affect the use of the marina. Mr. Pratt stated the boardwalk would be completed so that the Marina could be hooked up some time in February. President Hotton pointed out that the project encompasses more than just the boardwalk ... there is also a park on the shore side, which was supposed to have been considered as all one project. Council has strived continuously to make sure that there is not just a concrete and wooden boardwalk on the waterfront. Someone from the Port of Bremerton needs to make a final decision so that the City's project can move forward. Mr. Pratt stated the City is building a boardwalk and included in that is a grass area called inner harbor park, which will be constructed. There is a foot print the size of a Harbor Master's office in the center of that park. If at some point the Port decides to abandon that site, the City will issue a change order to the Contractor to continue the landscaping over that foot print. The Harbor Master's office is not a City project, however, the Port does control the property and the City is in a sublease situation to them. And, the Port cannot re-position that TAPE #951 City Council Reg. Mtg. Minutes September 4, 1991 Page 12 of 18 facility without going through the City's Shoreline Permit process, including a design review process. Mayor Mentor reassured Council that the Port of Bremerton was very anxious to get the Harbor Master's office built in the right location and for the right cost. TAPE #952 Mr. Baker stated in response to the issue of hiring a Project Manager - the City does have a Project Manager on the City staff. President Morton stated what she was referring to was a Project Manager outside of present staffing, who would dedicate their entire time to overseeing the major projects, i.e., boardwalk, sports complex, public works complex, etc. Mr. Baker explained for clarification that he currently serves as the City's Project Manager. He is not an inspector, geo- technical engineer, surveyor, mechanical engineer, testing laboratory, which are required in order to do these project. That is the type of project management listed on the requested contract expansion. He will be the go between for the City and he does manager all of the projects, but he does not do those individual technical tasks on every project. President Morton questioned if Portico was doing any project managing other than those areas already identified? Mr. Baker stated Portico will be doing all of the paperwork that relates to Federal, State and local money contributions, inspector logs will be verifying payments to the contractor and certifying that the work is done according to the specifications. President Morton stated it was that element that she would like handled by someone hired on staff. to do that function for all of the projects now and in the near future. Mr. Baker emphasized to do all of those functions that person would have to be a dozen people. Portico is providing a Structural Engineer, technical laboratory people, etc., - not one person but many people. Mr. Johnson stated Bremerton will have more projects in the next three years than its seen in a decade and Council is feeling City staffing needs to be increased to handle that responsibility. President Morton pointed out she was not criticizing Mr. Baker's performance in any way, but rather trying to find some assistance for the Engineering Department, Planning Department and Parks Department. Mr. Waibel noted there is a discrepancy between the ending date of term on the original contract and the date on the amendment. He questioned if the second date was a guarantee that the work would be done by the end of the year? Mr. Baker indicated the ending date should be June, 1992. Ian Sievers, TAPE #952 City Council Reg. Mtg. Minutes September 4, 1991 Page 13 of 18 City Attorney, stated the termination date had been amended to June of 1992. Mr. Estes thanked Mr. Baker and Mr. Pratt and Mayor Mentor for finally informing Council on this issue and looked forward to additional updates as the projects progress. #2357 Mr. Colvin questioned if he was correct in that if Mr. Baker, Mr. Pratt or Ms. Vanneman needed help that they would request it? Mr. Baker stated that was correct from his point of view. M/S/C/U(Dawkins/Collins) approval for the Mayor to execute the Professional Services contact with the Portico Group. 7A - ORDINANCE (FIRST READING) CASCADE NATURAL GAS CORPORATION FRANCHISE, #AB91-227 The proposed Franchise Ordinance gives Cascade Natural Gas Corp., the right~ to use and occupy public streets, avenues, lanes, alleys and highways for the purpose of supplying, distributing and selling natural gas to the inhabitants of the City of Bremerton. The 5% Utility Tax is contained in the Tax and License Code rather than the Franchise Ordinance and is at the maximum rate allowable by State Law without voter approval. City Charter requires 15 days between readings. Councilman Horning stepped down from hearing this issue due to his believing there would be a conflict. Kathleen McCluskey, City Clerk, explained that the Franchise had expired last year. The City had been operating without a Franchise, however, that did not pose any problem as the City does have an ordinance that covers use of right-of-ways and all such requirements, as well as the Taxing Code in place so the City was receiving the Franchise fee. Following is an overview of the changes in the Franchise: Section I Definitions - major change is that old franchise stated "public places" - this franchise limits to streets, avenues, lanes, alleys, highways. Section 2 Tariffs - this was patterned after last years Puget Power Franchise - allows City to reopen negotiations if there is a conflict. Section 4 Noninterference of Facilities - Cascade will not interfere with traffic passage, drainage, water or sewer TAPE #952 City Council Reg. Mtg. Minutes September 4, 1991 Page 14 of 18 pipes. Section 5 Relocation Of Facilities - City does not pay if relocation is for benefit of the City, private parties/property pay, relocation at no cost on waterfront/boardwalk area. Section 6 Indemnification - standard clause. Section 7 Moving Buildings - 14 days notice to Cascade for approval. Section 8 Default - 60 days if not in compliance with franchise. Section 9 Nonexclusive Franchise - franchise is not exclusive. Section 10 Term - 10 years. Section 11 Assignment - Cascade needs permission of City to assign franchise. Section 12 Location Of Facilities - Cascade must provide City with location of facilities and many future plans upon request. Section 13 Excavation - must get permit from City. Section 14 Shared Use Of Excavations - Cascade must allow joint use by City of excavations when reasonable. Section 15 Restoration After Construction - Cascade must restore area to its original condition. Section 16 Charge For Administrative Costs - City may charge Cascade fees for inspection etc., or work. Section 17 Miscellaneous - any provision found to be invalid does not affect remainder of agreement. Amended only by agreement of both parties. Cascade shall be taxed. Subject to all other laws. Prevailing party in lawsuit will recover attorney fees. Don Kuhns, Manager of Governmental Affairs For Cascade Natural TAPE #952 City Council Reg. Mtg. Minutes September 4, 1991 Page 15 of 18 Gas, stated Ms. McCluskey had covered the major issues and Cascade concurs with the Franchise as worked out. He urged Council to approve the Franchise Agreement as presented. Public comment - none. Mr. Johnson questioned if there was any discussion held on the possibility of any kind of earthquake shutoff valves? Jack Randall, Cascade Natural Gas District Manager, stated earthquake valves had been studied extensively since the San Francisco quake. The industry is really not looking at earthquake valves per say that are on the market. There is nothing on the market that could do a proper job and the Gas Company could not hire enough people to maintain the earthquake values that are on the market. The Gas Company does have an Emergency Shut Down System that control plants. They can isolate, within a very short period of time, any section of the system. In the event of an earthquake, he felt this area would become isolated already due to the location of the transmission line coming into the area. Mr. Johnson referenced a section in the Cable Television Franchise relating to when a certain percentage of the community in the regional area upgrade to a certain level of service there is a trigger in the contract that says the local Cable company must improve their services up to that level. He questioned if something like this could be included in this Franchise? Mr. Randall stated he believed Cascade Gas Company would keep up with that long before it would come to the consumer. Their concern and interest in safety has'to as great or greater than the public's. Mr. Kuhns stated the earthquake valves on the market today are more detrimental than a positive due to their sensitivity. He related several years ago there was some problems in the midwest, which were difficult to remedy due to the fact that their systems were very old and very costly to upgrade. As far as the innovations in the industry, they are now not only controlled by the Washington Utilities and Transportation Commission (WUTC) but also Federal Energy Regulatory Commission and the National Transportation Commission. The added Federal regulatory agencies' standards are much higher than the State Utility and Transportation Commission requirements. Safety is the number one issue as far as the Federal regulatory agencies are concerned. Mr. Johnson questioned Cascade's service extension plans? He was of the opinion that the use of natural gas should be promoted because of its long-term resource and economically more reasonable than other type fuels. And, he had wanted something included in the Franchise that provided universal natural gas availability for the citizens of Bremerton and TAPE #952 City Council Reg. Mtg. Minutes September 4, 1991 Page 16 of 18 making it mandatory for all new developments. Mr. Randall explained construction costs has a great deal to do with future expansion. There are rules laid down by the Utility's Commission, which they cannot vary from. Those rules provide a specific guideline of what feasibility they can do. Mr. Johnson questioned if he was correct in understanding that the WUTC was stopping expansion of natural gas lines in Bremerton? Mr. Randall stated the WUTC was not responsible for stopping it, the gas company will run lines in any locations whether or not it is feasible or not feasible, but the City/citizens may have to share in the cost. The only way he can acquire revenue is through the rate base. If he raises rates to extend the service to unserved areas, then the current customers will complain that it was unfair that they had to pay for someone's extension. He emphasized the WUTC's limitations for expansion and last December he ran one contractor off because he was pricing the gas company out of feasibility. Later, he resubmitted about 90% of the extensions that previously had been refused because they did not meet the WUTC's requirements and he was able to get those approved. If someone submitted a request for extension of service prior to January 1, 1991, he would like to reinitiate it and see what response he get. He obtained a drastic cost drop in contractors by going to another competitive company. Mr. Kuhns stated electric and water is necessary and in most cases telephone, but natural gas is a fuel of choice. They would like to see it become mandatory that people use natural gas, however, they must operate under a feasibility basis. They have one rate throughout the State of Washington and that rate is based on their operation of service, cost and depreciation. They have an investment of over 14 million dollars in the City of Bremerton, which took place since 1952. Mr. Colvin questioned if there was such a thing as expansion joints in the piping? Mr. Randall stated yes. Mr. Collins stated as one of Board of Directors of Puget Sound Air Pollution Control Agency (PSAPCA), they have been working diligently with gas companies trying to get people to convert, however, they cannot get any public relations or information to help people understand that natural gas is a better fuel than any of the others available. He referenced the storm window and insulation programs that Puget Power offers as an example of such promotions. He related a recent incident at the local Cascade Gas office when he was seeking information on gas furnaces and the lack of assistance. It was his feeling that the gas companies should offer some type of incentive type programs to encourage the use of natural gas #0888 #1130 TAPE #952 City Council Reg. Mtg. Minutes September 4, 1991 Page 17 of 18 fuel. He did acknowledge that Cascade Gas had a loan program that is 2% more than he could get straight interest. It was his opinion that Cascade was selling gas but not doing the "PR" with selling gas and he felt this was definitely needed. Mr. Randall stated he does have three consumer representatives that do answer questions and are knowledgeable about services available. In years past the head of the company decided that Cascade Natural Gas Company would not be an equipment installation company and run competition with competing contractors. They do use those contractors for PR, so if you are getting information from them, most likely they received that information through training schools provided by the gas company. Mr. Kuhns stated Cascade Natural Gas does not merchandise. Other gas companies are in all kinds of merchandising schemes, such as storm windows, insulation, etc. Cascade is a private utility and whatever they do must come from their stockholders. In the electric industry, much of the money is washed through Bonneville and. other such agencies. M/S/C/U(Waibel/Dawkins) to approve Franchise Ordinance, on first reading, 7B - ORDINANCE #4340 (SECOND READING) VACATING PORTIONS OF FIRST STREET ABUTTING BLOCK #1 OF BREMERTON HEIGHTS PLAT, #AB91-220 Public Comment - none M/S/C/U(Waibel/Colvin) to pass Ordinance #4340, on second reading, vacating portions of First Street abutting Block #1 of the Bremerton Heights Plat. 7C - ORDINANCE #4341 (SECOND READING) ANNEXING APPROXIMATELY 8.12 ACRE BREMERTON HEIGHTS, #AB91-221 Terrie Hartson, Municipal Services Coordinator, noted the Annexation Area contained 27 people, who are anxiously a waiting the services of City's Fire and Police and 17 absentee owners will be able to say that they have a piece of the #2 City in the United States. Public comment - none. #1170 M/S/C/U(Waibel/Estes) to pass Ordinance #4341, on second reading, annexing approximately 8.12 acres described as Block One Plat Of Bremerton Heights into the City of Bremerton and fixing the effective date of the annexation; and welcomed the new citizens of Bremerton. City Council Reg. Mtg. Minutes September 4, 1991 Page 18 of 18 With no further business meeting adjourned at 7:52 p.m. KATHLEEN McCLUSKEY, City Clerk LYNN HORTON, Council President City of Bremerton KLM/LH/me cc: Normal Distribution File/Vault-