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HomeMy WebLinkAbout10/16/91CITY COUNCIL MEETING MINUTES #0060 #0078 OCTOBER 16, 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, October'16, 1991, at 5:30 p.m., with Council President Lynn Horton presiding. Council members present: Lon Overson, Wayne Estes, Spencer Horning, Hank Waibel, Morrie Dawkins, A1 Colvin and Russ Johnson. Councilman C. R. "Tiny" Collins was absent. 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 Lynn Horton and Invocation given by Reverend Don Welt of Eastgate Assembly Of God Church. President Hotton announced Council will hold an Executive Session on "personnel" immediately following the Council meeting and a Study Session on "Housing Code" following the Executive Session. CONSENT AGENDA A. Minutes Of Meeting - October 2, 1991, #AB91-260 B. Bid Award Recommendation - Parking Garage Security Fencing - Awarded to Viking Fence Company In The Amount of $22,939.84, #AB91-261 M/S/C(Waibel/Dawkins) to approve Consent Agenda as presented and Council had stated previously to stay with the teal color for the garage fencing. Vote: In Favor: Opposed: Overson, Estes, Horning, Waibel, Horton, Dawkins, Colvin Johnson 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/Estes) on October 16, 1991, the Council does approve for payment those vouchers included and further described as follows: 137766, 13772 through 137782 in the total amount of $20,424.78. TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 2 of 25 COUNCIL MEMBER REPORTS Mr. Johnson explained the reason for his "no" vote on the Consent Agenda was because he did not support spending an additional $1,000 for a special color of paint for the parking garage fencing when it was not needed and could be better spent on something that was needed. He noted winter is here, lets all enjoy it. Mr. Colvin stated he was supporting all candidates for elected offices and was not supporting any single candidate. He did not want to become involved in any action that could bring about a split among the Council members. Mr. Colvin invited Andy Parypa to finish up his report. Andy Parypa, Hayward Avenue, gave a run down on activities publicizing a Town Meeting Panel Presentation on Propositions 1, 2 and the present form of government, scheduled for October 29, 7:30 P.M., City Council Chambers. He reported this program will be televised over Channel 29, and covered by KBRO. Mr. Estes stated because of the various rumors being spread around the community about crime problems in Bremerton, he requested Mayor Mentor to provide a report at the next City Council meeting. He stressed this was a serious concern to many people who think that a growing crime wave is starting. Mr. Homing reported he met with a group of south Callow merchants to discuss a variety of issues. During a tour of that area one dangerous building was pointed out to him, which he then reported to Mayor Mentor. He congratulated United Way on its new home on Sheridan Road across from the Perry Avenue Mall. Mr. Waibel congratulated Bremerton High School Football Team on their win this past week. He reported Kitsap Party was very successful and better than ever. He announced the Sunday Farmers' Market was finished for this season and would be staring up May 1992. PUBLIC RECOGNITION Mayor Mentor made the following report: (1) today is "Boss's Day"; (2) Farmers' Market had a great last day; (3) he artended the United Way Open House and Barbara Stephenson has been named as their new director; (4) He enjoyed Bremerton High School's football game, which now puts them in first place. Mayor Mentor read a Proclamation recognizing establishment of World Hunger Day to create global awareness of hunger issues. TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 3 of 25 He proclaimed October 16 as World Hunger Day in the City of Bremerton. Dorothy McKensey, Bremerton Foodline, accepted the Proclamation and thanked the Mayor and City Council for recognizing this issue in the community. On behalf of their staff and volunteers, she presented Mayor Mentor with a Foodline tee shirt. Mayor Mentor read a Proclamation recognizing more than 45 million women that make up the work force of those who are employed in our City, State and Nation. He proclaimed the week of October 20 - 26, 1991, as BUSINESS WOMEN'S WEEK. Mary Ellen Babbitt, District Director and member of the Bremerton Business And Professional Women, introduced group President Barbara Luddon. Ms. Babbitt gave a brief history of the Business And Professional Women's organization. She emphasized they promote full participation, equity and economics self-sufficiency for working women. This organization is open to all working women and men who believe in its goals. They sponsor leadership training and personal development workshops, scholarships and grants for women furthering their education and in depth research on job market trends, dependent care and issues relating to women. She announced the Silverdale Professional Women's group will sponsor a seminar - "A Step In The Right Direction", on Saturday, October 19, 9:00 AM to 3:00 PM, at Olympic College. If anyone wishes additional information on this program, they can call Donna Longwell 692-2703. On Wednesday, October 23, 6:30 PM, the Bremerton and Port Orchard Professional Women are hosting a banquet featuring Diane Mosley, Head of Personnel Operations At Keyport. Anyone interested in attending this event may contact Barbara Luddon - 373-0431. Mayor Mentor read a letter from Reverend Ric Glomstad, Sylvan Way Baptist Church, thanking the City for assisting with their "Sudden Impact" youth rally involving 450 teens. Amy Burnett, gallery owner, presented a proposal to turn a portion of downtown retail parking into a "parking validation" zone, that would be of benefit to the businesses located in the downtown area. She provided a picture of vehicles parked along 4th Avenue, taken at 8:00 AM, which showed that all parking spaces were filled. This would reflect the impact of downtown workers utilizing all available parking spaces. She urged the Council to consider implementation of the "merchant validation" program whereby shoppers could park their vehicles and obtain a validation sticker allowing them to park for an unrestricted period of time in that particular zone. She brought this proposal to Council with the total support of other businesses in the general area of the proposed TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 4 of 25 validation zone. She emphasized the influx of visitors to her gallery and the need to provide parking space for longer periods of time than the now posted 2-hours. Mr. Estes questioned if Ms. Burnett was proposing this program to be tried on a "trial basis" and wouldn't there be the opportunity for abuse? Ms. Burnett stated she had faith in Bremerton. Mr. Overson recommended that Ms. Burnett go forward on this plan and provide documentation bringing this proposal to Council for their consideration. He felt this plan had some real opportunity in it because the people involved with it would be doing the enforcement. Mr. Dawkins stated as a downtown businessman he would support such a program. Mr. Johnson raised a "point of order" that this discussion was under Public Recognition and not an item for Council consideration at this time. President Hotton requested that the City Clerk meet with the Parking Manger and Ms. Burnett to discuss this proposal. Mr. Homing suggested that Mr. Overson, as Council representative for the downtown area, be included in that group. John McConnell, Bremerton, stated being experienced in "parking" management, he recommended that people working in the buildings that would be validating the retail parking be excluded from that validation. In reference to the use of the "Elks" building for low income housing, he, as one of the owners, had seen a number of proposed uses for this building. If the City wants a particular type of use, then they should make an offer to obtain the facility. He was not opposed to development of additional low income housing in order to help those in need. De1 Knauss, Olympic Avenue, stated he would like Council to pass a Resolution on Parks and Open Space and proceeded to read his version of such a document into the record. Chuck Laubach, 215 6th Street, emphasized the Town Meeting scheduled for October 29, 7:30 P.M., in the Council Chambers. Publicity of this event has been provided in a variety of ways and he hoped it would generate a good turn out for this event. Eileen Fitz, 4420 Fitz Drive (Candidate for Council District #8), stated She was grateful to Council for presenting the public forum on October 29. While doorbelling, she talked with many residents who are confused over the proposed propositions and what type of government would be the best for Bremerton. TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 5 of 25 Roy McInnis, 2711 Maple Street, expressed support of the Town Meeting scheduled for October 29. He felt this was a good way to inform the public on important issues that will affect the citizens of Bremerton. He believed the government is still operated by the people through the power of "their vote". AndV Paz'v'De, 1122 Hayward Avenue, stated he was bothered by the fact that the people are being asked to vote on propositions that are not supported by a new written Charter. He referenced a statement in the City's current Charter (Section 19 - " The Mayor shall likewise appoint the Park Board, the Library Board and the City Planing Commission with the consent of the City Council and the Municipal Judge"; and questioned the intent of the statement. Because it had not been the practice of the City to actually obtain the Municipal Judge's consent on the above mentioned boards and commissions, he questioned if those groups were not legally formed. He used this as an example of the need to review the City's Charter and amend it to accurately reflect the actions being taken by the City. He questioned when would the Charter be amended to correctly reflect current City operations? Don Larson, 135 Rainier Avenue, gave an update on Coastweeks activities, Dyes Inlet clean up, and Sinclair Inlet clean up. He was pleased with the publicity given to the clean up activities in the Port Orchard Independent, Kitsap County Dispatch, Trident Tides, and The Progress. Mr. ParVpa requested that he receive the City Attorney's interpretation of the portion of the City Charter he referenced in his previous statement. President Horton requested Ian Sievers, City Attorney, to address Mr. Parypa's concern. Mary Lou Long, 2433 E. Phinney Bay Drive, expressed concern over what was happening in the City and what she heard from Mr. Dawkins during the Chamber Round Table meeting this morning. She noted Councilman Dawkins intimated that there was a known or accepted policy of tolerance of undesirable, potential criminal and criminal activity in the core of the City of Bremerton. She was concerned over Mr. Estes' request to Mayor Mentor to publicly explain what is happening in the area of crime enforcement. She pointed out this Agenda contains many serious considerations for the citizens and she was frustrated that she did not have the opportunity to review the materials prior to their being heard by Council. She is concerned that this form of government is not being properly worked. TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 6 of 25 6A - INFORMATION ITEM - WATERFRONT BOARDWALK PROJECT UPDATE: Dave Baker, City Engineer, stated this would be first of a number of updates on the overwater park project. The project has begun with 134 working days remaining. Following are items listed in the contract and their percentage of completion: Mobilization - 80%; Insurance - 100%; remove riprap - 100%; replace riprap; demolition - 100%; site prep; test piles - 100%; sawcut asphalt; curbs & walls; C.I.P. Caps; precast deck; waterproofing; C.I.P. deck; facia; railing; bollards; brick paving; benches; waste cans; bike racks; landscaping; electrical; water; sewer; drains; piles. Following are items that have also be worked on: refurbishing gangway and utility connection, PSNS sculpture, and review of Portico of a revised location for the Harbor Masters' office. The piling is scheduled to arrive October 17, with piling driving scheduled to start on Monday, October 21. Mr. Estes questioned if the completion date was May 19, 19927 Mr. Baker confirmed the contract scheduled completion date as May 5, 1992. Mr. Estes questioned if freezing weather would slow down the progress? Mr. Baker stated freezing weather should not stop the construction with the exception of concrete work. Mr. Johnson requested that future reports on items that are not completed reflect the intended completion date. Mr. Baker stated at the time of the next update there will be a flow chart showing expected and exact flow of cash and the time line when each item is scheduled to be completed. Mr. Overson questioned when the next update report would be given? Mr. Baker stated future updates will be given the second Wednesday of each month, unless something needs to be reported to Council before that date. 7A - 10% PETITION FOR THE CORBET/KITSAP WAYANNEXATION, #AB91- 262 The Kitsap Way//Corbet Drive area consists of 108.72 acres; 10 businesses and approximately 174 dwelling units with an estimated.300 persons residing there. This area has a high demand for municipal services. To meet this need annexation of this area is proposed. A letter of intent to commence annexation proceedings has been submitted, which contains signatures from 10 percent of the Kitsap Way/Corbet Drive area, computed according to the assessed property valuation in the area proposed for annexation as required in RCW 35.13.125. TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 7 of 25 Pursuant to this statute, within 60 days of the submittal of said letter the Legislative body is to determine: (1) whether the City or town will accept, reject, or geographically modify the proposed annexation; (2) decide whether it will allow administratively assigned provisional zoning under Chapter II of Section 3 of the Zoning Ordinance or will require pre- annexation zoning; (3) and finally, whether it will require the assumption of all or any portion of existing City indebtedness by the area to be annexed. Terrie Hartson, Municipal Services Coordinator, stated this area, adjacent to Kitsap Way, is an area with mixed characteristics. On the south side are successful businesses, who generate a great deal of activity. There are also quiet little neighborhood communities occupied by long time residents in cherished homes, as well as areas that remain somewhat undeveloped. The lifestyle of these residents revolve around convenient and close-in shopping, recreation and employment opportunities. Since 1970 this area developed by about 25%. Growth this close to the City is a natural occurrence. Problems which result from rapid development and population growth frequently occur where raw land is less expensive and zoning laws are less restrictive or non-existent. All cities are surrounded by areas such as this. Along with this development comes the problems that concentrations of people create: failure of septic systems, increased traffic congestions on inadequate roads, need for more extensive police services, more fire and medic calls. These are reasons for the owners of properties within this area to consent to annexation. Now, the question is raised, "why should the City want to absorb the problems of this area"? Because the problems that face these people unfortunately cross our imaginary boundary and become the City's problems as well. Growth and change are things we all learn to tolerate, but never learn to enjoy. It is human nature to not want to make changes. For the neighborhood of Kitsap Way/Corbet this time has come as the problems that face this area may threaten the security of life styles they now enjoy. In order to maintain good conditions in the face of escalating development, good conditions such as low crime, high quality road service, good recreation, nice neighborhoods, successful business parks, quality utility service, quick responses to emergency situations and a clean environment are available through organizations of municipal government. The State of Washington proposes that cities be the preferred TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 8 of 25 areas for urban growth and who would provide services to populations in an efficient and economical manner. It is with these thoughts in mind Council is urged to proceed with the annexation of this area. The subject property is located adjacent.to the City limits of Bremerton within an unincorporated County "peninsula", which is bounded by the City on the east, west and south. Much of the unincorporated area has already been developed as a semi-rural neighborhood with a variety of commercial, office and other non-residential uses. The area is assessed by the Kitsap County Tax assessor for $11,513,060. The petition represents 10% of this sum. The applicants would need to have consent from 75% of the area in order to finalize the annexation, amounting to $8,634,795. The 10% petition consists ~of several Outside Utility Agreements signed in years past and other Annexation Agreements which authorize the City a limited Power Of Attorney to add their names to a petition for annexation. This is a common practice throughout the State and in some cities services cannot be extended to unincorporated areas prior to annexation. Each of the Outside Utility Agreements are signed, notarized and recorded at Kitsap County Auditors office. Council is requested to take action on three items: (1) approve the geographical area; (2) decide whether a pre- annexation zoning hearing should be held; (3) to decide whether or not this area should assume the same amount of existing indebtedness as other City residents. Geographical Area - during this step of the annexation, an area is described that would be the largest area the City would choose to annex in this particular proposal. The area described could not, at some later date, be enlarged without having to come back to this step to start over, however, this area could be trimmed down during Council's final 75% petition hearing. Zoning - staff recommends that zoning go through the normal process of assignment prior to the effective date of annexation. Requirement For Assumption Of Debt - this question will establish whether or not the property taxpayers of the proposed Annexation Area would be obligated to pay existing excess property tax levies approved in years gone by. In this instance the debt amounts to approximately .20 per $1,000 TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 9 of 25 annually and consists of the following three bond issues: (1) 1977 Library bond; (2) 1979 Fire Bond; (3) 1990 Fire Bond. It is important to note that none of the General Fund taxes are used for the sewer treatment plant. The plant was paid for by Utility Bonds paid through rates and grant revenue. Staff recommends that the Annexation Area pay this proportional share of existing City indebtedness. This will not have a tremendous impact on the homeowners of the area and would amount to an annual difference of $46.19/$3.76 a month. MS. Martson pointed out Crown Hill School was excluded from the Annexation Area due to State statute that says School State land must be a separate annexation issue. She has been in contact with'School officials to discuss the possibility of future annexation. Mary Wagner, 3125 Ricky Road, stated she felt the method of annexation is unfair to the average person. She believed it should be by the vote of the residents within a targeted Annexation Area. She doubted the number of Outside Utility Agreements being cited by staff. She questioned if McDonalds' had an Outside Utility Agreement with the City and might there be a conflict of interest with the annexation of Joe Mentor's property? If the owners of Arnold's furniture or Joe Mentor were included under this petition, she believed their names should be withdrawn. Ian Sievers, City Attorney, stated Council had information relating to any conflict and he could not render an independent or separate opinion on that issue since he represents the Mayor and City Council. President Morton questioned if there was any conflict in that the Mayor's brother is one of the participants in the annexation? Mr. Sievers stated that would be more of an indirect attack, but if Council is comfortable with the information they have on the Mayor, there would certainly not be any concern over his brother's involvement. President morton asked Councilman Dawkins to'respond on the issue of conflict of interest that he raised previously that involved Mayor Mentor and Arnold's Furniture. Mr. Dawkins explained he requested a formal opinion from Municipal Research Services as to the possibility of a conflict of interest for Mayor Mentor to participate in advertising for Arnold's Furniture. The opinion he received stated there was no violation on the Mayor's involvement in a television ad. If Council wished to prohibit such activity, then such rules or regulations would need to be changed. Mayor Mentor stated this is a public process and 75% of the assessed valuation will have to agree to an annexation, not just a few businesses along Kitsap Way. He stressed the kinds of needs that encourage people to annex and the fact that people are concerned about life support systems as well as TAPE #960 City Council Reg. Mtg. Minutes October 16, 1991 Page 10 of 25 sewer services. Ms. Hartson stated in response to Mrs. Wagner's concerns, the commercial areas would not be a leverage to annex the residential areas...they will have to support annexation on their own. If the City does not receive the percentage needed to proceed with the annexation as proposed, the Annexation Area would be reduced in size to the commercial area only. The Utility Agreements are only issued when the City provides services to a particular individual and the City does not require that annexation be completed prior to issuance of such agreements. The Agreement asks them to agree to not oppose annexation in the future. The 10% petition on this agenda item does not include Mr. Erickson's agreement (Arnold's Furniture). McDonalds signed an Outside Utility Agreement in 1980 and Joe Mentor signed such an agreement in 1979, which was long before Louis Mentor was interested in running for an elected office. There are several areas in the City that could be, by Resolution, annexed'into the City. However, Mayor Mentor has given direction that annexations will not be processed through the Resolution process. The Kitsap COunty Commissioners support the City annexing the entire Rocky Point peninsula. Bruce Derky, 1724 Dora Avenue, stated he was not interested in annexing into the City. He does not agree with how the City is run and does not want to be part of it. He stressed that they do receive prompt fire protection service under their present system. When his family experienced a death of a child the current Fire Protection service responded in 11/2 minutes. Robert A. Ackerman, 3706 Arsenal Way, was opposed to being annexed into the City. He did not believe that the City could provide as efficient fire protection services to the Crown Hill School area as the current system. Mrs. Wagner, Rickey Road, restated her opposition to the annexation as presented and believed it should be put before the vote of the residents in the proposed Annexation Area. TAPE #961 Ms. Hartson stated in response to Mr. Ackerman's comment on response time for emergency services to Crown Hill School, just recently Fire District #7 merged with Westgate Fire District, which has not had paramedic services for quite some time. Therefore, if paramedic services were needed it would not be coming from the Westgate Fire Station, In regard to the concern that Westgate Fire Station might be closed, Ms. Hartson stressed that this was something that Fire District #7 #0139 #0181 TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 11 of 25 would decide and it had nothing to do with the City of Bremerton. Fire District #7 will be dispatching paramedic service to the subject area from the Gorst Fire Station, which is a greater distance than the availability of the City's westside Fire Station. In response to Mrs. Wagner's concern over the process of annexation, there are several methods for annexation and the 75% process is the most commonly used. The election process is sometimes used for very large areas. Mr. Waibel stated he believed the 11/2 minutes response of paramedic services received by Mr. Ackerman was made by the City because they were under contract to service that area at that time. Taxes are based on assessed valuation and that is why State law requires that annexation be determined by assessed valuation. In this case, the number of property owners involved may be a lot less than the assessed valuation of some of the parcels but those people are affected more and that is why they have more of a vote. The City tried to explain that point to the residents on Ricky Road, however, they did not seem to understand that issue. Outside Utility Agreements are signed by individuals knowing that if they want immediate services from the City they have to agree to not oppose annexation at some future time. As previously stated, many cities will not extend services until annexation is completed. He did not understand why people think being in the City is obnoxious - the City is not going to ask any more, in terms of taxes, than the County has. If the residents of Rocky Point Road have to put in sewer systems because their septic systems are no longer possible, they will have to pay many thousands of dollars more if they are outside the City. The City is doing every resident of Rocky Point Road a service by allowing them to come into the City - we are not dragging them in. Mr. Overson emphasized why he likes living in the City and pointed out this annexation is a natural. M/S/C/U(Horning/Waibel) to approve the annexation petition of the area designated as Kitsap Way/Corbet Drive Annexation Area. M/S/C/U(Horning/Waibel) to require pre-annexation zoning hearings of the area and to require the area to assume proportional existing City indebtedness. 7B - APPROVE AN ANNEXATION AGREEMENT BETWEEN THE CITY AND ARNOLD'S FURNISHINGS, #AB91-263 An annexation Agreement has been negotiated between the owners of Arnold's Furniture and the City of Bremerton. The TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 12 of 25 agreement is needed to proceed with the Kitsap Way/Corbet Drive Annexation and the Kitsap/Marine Highway Project. Terrie Hartson, Municipal Services Coordinator, stated the proposed agreement was negotiated to facilitate improvements to the intersection of Kitsap Way and Marine Drive. This intersection is considered to be dangerous by residents and users of the thoroughfare and in need of redevelopment. Mr. Wendal Arnold and 'Mr. and Mrs. Ralph Erickson own lots surrounding this intersection. In order to engineer a safe and adequate roadway, a section of the Erickson's lots is needed and the agreement outlines a fair exchange between the City and Mr. Erickson. The trade involves the exchange of a vacated right-of-way, that will no longer be needed by the City; and the hookup of sewer to an adjacent main. Staff recommends this agreement to Council as a fair and equitable trade. The value through increased public safety as well as real estate dedicated to the City is similar and consistent in value to the property and services in kind being transferred to Mr. Erickson. Public comment - none. Mr. Homing noted he traveles the subject intersection several times each day and had encountered many awkward traffic situations. He, as well as many others, had discussed the subject of annexation with Mr. Arnold and Mr. Erickson and he supports the annexation proposal as presented. He complimented Mayor Mentor, Ms. Hartson and staff for putting this agreement together. Mr. Johnson questioned the statement " Arnold's Furniture owners will only be liable for the actual cost of necessary pipe for installation of utilities", and whether or not it will also include the cost of installation? Ms. Hartson stated from her discussion with Bill Duffy, Utilities Director, it is not unusual that the person has the opportunity to install piping themselves or pay front footage. Mr. Johnson wanted to make sure that the cost of installation of any piping would also be paid by the property owners? Ms. Hartson stated that was her understanding. Mr. Johnson stated there was some discussion about access both on Marine Drive and Kitsap Way for the revised Arnold's parking lot. He was concerned that if the City doesn't regulate that portion of the lane it may end up with the existing City right-of-way still being used but in Arnold's parking lot by people trying TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 13 of 25 to avoid the stop light. He questioned if something could be engineered so that would not happen? Ms. Hartson stated from her research on this issue, she found it is not illegal to cut through parking lots so the City would not be able to patrol the area to keep it from happening. Mr. Erickson is responsible for any accidents and may have some liability if he has accidents in the parking lot because of vehicles cutting through. Therefore, Mr. Erickson may choose to engineer his parking lot in such a way that it would deter traffic such as that. President Hotton stated a good, sturdy planter box would help to defer such traffic. Mr. Johnson brought up the point that the agreement exempted them from all landscaping requirements and certainly he'll have to re- landscape if the shape of the property is changed. Ms. Hartson stated any property owner annexing to the City is allowed to grandfather any existing ordinances at the time or codes he is in compliance with as they exist in the County. So, without making any changes to the lot Mr. Erickson can keep the landscaping the way it is. If he were to change his lot or add to his building in any way, then he would have to comply with current codes. Mr. Johnson stated the new southwest corner will be new. Ms. Hartson stated that area will already be paved, therefore, there will be no changes. It was her understanding that the City would be installing curbs and sidewalks as part of the intersection improvement. Mr. Johnson questioned since the "Power Of Attorney" is only good for three years when will the "clock" start? Ms. Hartson stated Mr. Johnson.was correct in that the "Power Of Attorney" was good for only three years and would have to be renegotiated after that time frame. It was her assumption that the "clock" would start when Mr. Erickson signed the agreement. Mr. Johnson stated it was his feeling that the "clock" should not start ticking until it was determined that the annexation would be implemented. Ian Sievers, City Attorney, stated the agreement is affective as soon as Council gives their approval. That date is set with the hope that all of the annexation events could be set in place. The 75% approval can be done as soon as the intersection work commences so it will be just waiting for the intersection to be completed and for all practical purposes be the effective date of the annexation. Boundary Review Board action will actually commence now. Mr. Johnson questioned the City's liability regarding the underground tanks storage areas on the property? Mr. Slevers stated that liability has been released as it was tested and approved. Ms. Hartson stated she was in receipt of a letter from the Department Of Ecology supporting that release. #0301 M/S/C/U(Horning/Dawkins) to accept, as staff has recommended, TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 14 of 25 approval of this Annexation Agreement. 70 - REAL ESTATE PURCHASE AGREEMENT - CASCADE NATURAL GAS, #AB91-264 Cascade Natural Gas has leased the parcel of property at Union Avenue and Werner Road since 1963, paying $5,393 in lease payments. In 1986 they stopped paying based upon language in the old franchise giving them rights to all public property. The new franchise specifies franchise rights to public rights of way only. The regulator station site is an essential part of the infrastructure necessary to provide services to Bremerton. The proposal to surplus, sell and place this property back on the tax rolls was routed to Department heads and approved by Parks, Engineering,. Planning, Utilities and Public Safety. The purchase price pursuant to appraisal is $3,855.00. Kathleen McCluskey, City Clerk, stated Cascade Natural Gas has agreed to the purchase price and the terms of the agreement. Public comment - none. Mr. Dawkins questioned the size of the proposed site? McCluskey stated it is about 1500 square feet in size. MS · Mr. Johnson stated he was not sure this proposal was such a good deal. Between 1963 and 1986 the City received almost $5,400 in rent and now it was proposed to sell it for $3,800. He couldn't imagine that the tax income from this property would amount to much and suggested continuing to rent the property. Ms. McCluskev stated Cascade does not want to continue leasing the property and were not happy about paying more in rental fees than the purchase price. The City attempts to get out of the business of leasing small pieces of property and this site was an appropriate situation for purchase because of the long term use. Mr. Johnson questioned if Cascade provided service to the neighborhoods surrounding the subject site? Ms. McCluskey stated no, not everyone. Mr. Johnson suggested just asking Cascade to move off the property or provide some service to the surrounding areas? President Hotton stated if the City did that then the City would probably end up with a parcel of property 25 ft. by 60 feet with the relocation of Cascade Natural Gas. She did not feel this was an issue that could warrant bringing such leverage on Cascade. Mr. Overson stated Mr. Johnson's point was accurate in that this utility was not to disposed to customer service. He expressed concern over the fact that no one can purchase a lot TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 15 of 25 in the City for $3-4,000 unless someone is a monopoly utility. Ms. McCluskey stated this site is not a buildable lot and not of much value to anyone else. And, the time and place to deal with customer service issues was at the time the Franchise was renewed. Mr. Homing stated he did not believe Cascade Gas Company was denying service and if they did limit service they must have a good reason. He stressed that they have been a good company. Mr. Waibel stated Council did have the opportunity to raise the issue of expanding service and customer service issues. As Cascade explained previously, they would have to make "free loans" to expand service with no assurance they would be paid later on. If there were some sort of State loan program, the City may be able to get them to expand their service to all City residents. He believed the City should be talking with the State in order to do those things which are ecological sound. President Hotton stated if the people who are interested in hooking up to natural gas pay the price to get the piping to their properties, Cascade Gas would be more than happy to construct it. #0734 M/S/C(Horning/Dawkins) to approve sale of regulator site at Union/Werner to Cascade Natural Gas Corporation. 'Vote: In Favor: Colvin, Estes, Horning, Waibel, Dawkins, Horton Oppose: 'Johnson, Overson 8A - ORDINANCE (FIRST READING) AMENDING BMC 5.02 BUSINESS TAX/LICENSING AND REPEALING CHAPTER 3.92 WATER & WASTEWATER UTILITY TAX AND FEES Several amendments have been proposed for BMC 5.02 Business License/Taxation, including: 1) Annual License fee increase from $25.00 to $30.00. ,2) Incorporation of Utility taxation. Increase in Water Utility tax from 6% to 12.3% to offset deletion of interfund charges. New Cable TV Utility tax of 2%. 3) Clarifying statute language regarding successors to ownership, penalties, record keeping, non-profit organizations and tax deductions. 4) Tax/License Division was transferred to the City Clerk in 1985. The correction from "Treasurer" to "City Clerk" TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 16 of 25 throughout the ordinance reflects that change. Paula Johnston, Tax and License Inspector, stated this ordinance is lengthy and something she uses extensively throughout the year in tax collection and licensing. It has not come before Council for six years in terms of any kind of updating or amending, however, during application of the regulations it has become apparent there are areas that need updating. Coupled with the housekeeping measures, there are several revenue fee increases being proposed. Business License fee increase to $30.00/annuallV - the City spends a great deal of resources' on each Business License application and .it is not just a matter of receiving the application and preparing a license. All applications are routed for approval to the following departments: Building, Fire, Planning and Police and on many occasions site inspections are made by the Building and Fire Departments. The.current fee of $25.00 per year does not come close to covering the cost of such service. Raising the fee to $30.00/annually would fall within the competitive realm of other cities who grant Business Licenses. Along with the increase in Business License fee, staff proposed that the second locations of businesses and if a business relocates that they pay a fee. Up to this point that was already included in the annual fee for the first site. Occupation Tax Exemptions - the City has several areas where it cannot tax business, such as insurance industry and real estate transactions. The proposed change would license these types of businesses even though they cannot be taxed. The purpose for this would be mainly for code compliance - fire and building inspections. There is nothing in State law that prohibits business licensing even thought up to this point the City had exempted those kinds of businesses from its jurisdiction. It is proposed that everyone obtain a business license. Occupation Tax -Who Must Pay/Amount - this has been supplemented by transferring all Utility Tax Ordinances to Chapter 5.02. This consolidation is proposed because most of the language in the Utility Tax Ordinances are redundant in regard to record keeping requirement and regulation by the City in terms of retention of business records. These ordinances have been brought in and melded with 5.02, however, nothing of substance has been lost from the original ordinances. As Ms. McCluskey pointed out, there was a proposed change of the Water Utility Rate, however, that has been withdrawn until it can be redefined. TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 17 of 25 The "Deductions" item is just identify more clearly when a deductible revenue. a housekeeping measure to non-profit organization has Rules and Regulations - the Tax and Licensing Department was taken over by the City Clerk in 1985 and that change needs to be reflected correctly in the ordinance. Occupation Tax - Ouarterly Payment Dates - business and occupation tax payers must pay quarterly and this proposal incorporates that the Utility taxes have to be paid monthly, as is the current practice. Record Keeping Requirements - several years ago the Washington State Gambling Commission changed their retention requirement of gambling records from six months to four months, therefore, this change is to reflect a change that correlates the Gambling Commission's standard. Ouittinq Business - Successors - in terms of liability of taxes we already have a tax rule to this affect and it is proposed that it be placed directly into the Ordinance. This would assist in the due process and due notice purpose. Penalty Section - this has been revamped under the direction of the City Attorney's office. Previously there had been problems in trying to prosecute some tax collection cases and this proposal will clarity the City's legal standpoint. Public comment - none. Mr. Overson questioned staff's comment of "no impact on "staffing, budgets, facilities, etc.? Ms. Johnston stated she answered that question more in terms of a dollar figure. She is operating fine under the current ordinance, however, she is proposing changes that will make better law for the City. Ms. McCluskey stated Ms. Johnston was not looking at the revenue generation side and there will be no impact to her operation of the division. There will be a revenue impact from license fees of approximately $16,000, revenue impact from Cable TV 2% fee is approximately $60,000. Mr. Oversonquestioned if those were the only revenue issues? Ms. McCluskey stated yes. Mr. Waibel stated he did not believe we should do anything that was in direct violation with the City Charter. He requested the City Attorney to read the heading of Section 25 of the City charter and the third sentence in that section. Ian 81evers read into the record: "Section 25 - Receipt, Custody And Disbursement Of Funds (3rd sentence) The City TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 18 of 25 Treasurer shall receive and keep all monies due and belonqinq to the City, and all trust funds held by the City, and shall keep an accurate detailed account of the same in such manner as to show the exact financial condition of the City." Mr. Waibel stated in 1985 there was an Organizational change and several others made since that time. Since then, there have been a number of problems caused by those reorganizations, including money found missing in a number of situations. He did not support codifying those organizational changes in violation of the intent of the City Charter. He believed the Charter was clear that the intent was to separate receipts from disbursements, which is a good accounting procedure and does not allow for this kind of organization. Rather than codify the organization in the ordinance, actions should be taken, during the 1992 budget process, to determine how that reorganization should be implemented. The intent of the Charter is to have two equal departments - Treasurer's Department and City Clerk Department, which is not the way the City is currently organized. He stated he would like to see this ordinance approved with all comments changing from City Treasurer to City Clerk taken out and reviewed at a later time. Ms. McCluskey stated the receipt of money is received by the City Treasurer. What is being proposed is the operational aspect of running the regulatory licensing process and B&O Licensing process. Mr. Waibel stressed the importance of being in compliance with the Charter and to address concerns within departments through the budget process. Ms. McOluskey stated in this instance the funds are receipted through the Treasurer's office and the Treasurer accounts for the receipt of B&O Taxes through all financial reports. What is being proposed is an operational direction for the Tax and License Division and it has nothing to do with receipting of money. Many times when talking about the operation of a department there is a misconception that someone else is responsible for the money, such as the Court office, but in this case that is not what happens. President Horton questioned for clarification if it was desired that all references to the Treasurer be deleted or to readdress the issue at second reading of the ordinance? Mr. Wai~el supported approving all other suggested changes and readdressing this issue during the budget review process. Mr. Johnson stated for clarification that he was under the impression subparagraph 2 on the Agenda Cover sheet had been deleted. President Hotton stated she had made reference to that, however, at that time she did not realize the Cable TV Tax was included. No change to Utility Tax rates are being considered at this time. Ms. M~Cl~skey stated there is another piece to that, the proposal would move the Utility Tax #1384 #1488 TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 19 of 25 language from the other parts of the Code into Chapter 5.02. Mr. Johnson questioned why all reference to Natural Gas taxes were crossed out? Ms. Johnston stated that portion was moved to Chapter 5.02.070. Mr. Johnson noted payment of Utility taxes are now on a monthly basis. Ms. Johnston stated the City has always been on a monthly basis for Utility taxes. M/S/C/U(Waibel/Horning) to approve ordinance, on first reading, amending Chapter 5.02, with the exception of references to the elimination of the City Treasurer and substitution of City Clerk's Office; and repealing Chapter 3.92. 8B - ORDINANCE (FIRST READING) ADOPTING NEW SECTION TELEPHONE AND TELEGRAPH MAINTENANCE AND OPERATION IN BMC 17.24.145 AND REPEALING CHAPTERS 5.62 ELECTRIC UTILITIES AND 5.64 TELEPHONE AND TELEGRAPH, #AB91-266 Utility Taxation Ordinances 5.62, 5.64 and 3.92 have been proposed to be consolidated into business License/Taxation Chapter 5.02. The maintenance and operation section of Telephone/Telegraph 5.64 needs to be retained and can be appropriately placed in Chapter 17.24 Construction On Public Property. Paula Johnston, License Inspector, stated this was 'a continuation of getting.the Utility Tax Ordinances in Chapter 5.02. As stated previously, there is some language in the Telephone Utility Tax Ordinance that needed to be retained and was not related to tax or licensing - the engineering portion that the City Engineer indicated needed to be retained and directed that it be placed in Chapter 17.24. Public Comment - none. Mr. Waibel questioned iF it was perceived that the City would be making any changes in the telephone agreement that might affect the City in the future. Jan Stemkoski, Assistant City Engineer, stated no. Mr. Johnson stated when this item was discussed earlier he was under the impressing that a business fee or license or something that would make it advantageous to underground this type of cable would be considered. Mr. Stemkoski stated this item only addresses something that has been in affect and does not affect rates. His department is still working on the rate information Mr. Johnson referenced. M/S/C/U(Waibel/Dawkins) to approve Ordinance, on first reading, adopting a new Section TELEPHONE AND TELEGRAPH TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 20 of 25 MAINTENANCE AND OPERATION in the Bremerton Municipal Code 17.24.145 and repealing Chapters 5.62 and 5.64. 8C - RESOLUTION #2363, IN SUPPORT OF TWO-PLUS-TWO BACCALAUREATE DEGREE PROGRAM THROUGH OLYMPIC COLLEGE The Bremerton City Council lends its support to implementation of a Two-Plus-Two Program through Olympic College for residents of the Olympic Peninsula. Due to its geographical location, the Olympic Peninsula is not within an easy commute to institutions of higher education, i.e., University Of Washington, and for those seeking such Degrees commuting long distances or relocating has an adverse impact on employment opportunities and family commitments. President Horton asked the City Attorney if there was any kind of conflict of interest as far as the City Council considering the passing of a Resolution supporting the Two-Plus-Two. Someone raised this issue to Councilman Estes since Council had always taken a stand to not support Ballot measures and things of that nature as a group, but was up to each individual to lend or not lend their support to such issues. Mr. Estes stated the issue came up that since Council did not support the School District levy, as a group, is it proper for the Council to now support this Resolution. Mr. Sievers, City Attorney, noted this was not a Ballot measure and would not be covered by a State statute and is an expression of public policy, which he felt was appropriate. Mr. Waibel pointed out it is the Council's policy not to take positions, as a group, on political issues, but there is nothing in State law that restricts Council from doing that. De1 Knauss, Olympic Avenue, stated this is not a ballot measure but will eventually cost all taxpayers money. He found it insulting that the Poulsbo City Council support their school bond and the City of Bremerton Council has a policy that they can't. He found it disturbing that Council would be pressing to approve such a Resolution when the City was still involved in a condemnation lawsuit with Olympic College. He believed Council should not be giving this item "group support" but rather "individual" support. He stressed that if the Two-Plus-Two program were implemented there would be added traffic problems and parking needs. Mary Lou Long, Phinney Bay Drive, stated she supported Mr. Knauss's remarks and found the distinction between a School Bond measure and a very political issue to be murky or very compatible when you find that the results of a Two-Plus-Two Program and expansion for the College and the fact that the City is engaged in a dispute and controversy over whether or TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 21 of 25 not the College has the right to engage in condemnation procedures on a City Park area. She did not feel it was appropriate for Council to address theTwo-Plus-Two program at this time. Mr. Overson stated lo~s of his constituents want a Two-Plus- Two Program in the City. He believes it is a good idea and lends his support to adoption of the Resolution. Mr. Hornlng stated he supported the School Bond and he now supports this Resolution. He believed there is a major distinction between something that is going directly on a Ballot. He pointed out that Council is also serving people who are "placebound", and felt it would be a travesty not to support this proposal. We don't know that the current location of Olympic College, its physical site or Roosevelt Field, would be where the Two-Plus Two Program would take place. Mr. Estes stated as a former educator he believed it was necessary to provide a program in this area for young people to want to complete four years of a college education. This is an entirely separate issue than "Roosevelt Field" and he believes people who want to continue their education should have the opportunity to do so. He personally experienced commuting from the Olympic Peninsula to University Of Washington and found it to be very time consuming and physically exhausting. Mr. Colvin questioned for clarification that this issue had nothing to do with "parking" at Olympic College? Mr. Slevers stated, as he explained previously, the issue before Council at this time is to support conceptually a program, a much broader issue than the narrow issue in the Roosevelt Field suit. As Mr. Horning pointed out, no one knows where this program would be located within the County, if approved. There is nothing the Court can infer from this action that would undermine the City's position in Court. Mr. Dawkins stated he was a prime candidate of someone who would have pursued a 4-year degree locally if available and he fully supported this Resolution. President Hotton stated she attended a meeting at Olympic College on this issue and in talking with the Higher Education Board, it is their feeling that if there is to be any degreed program in the area it is to be carried out in Tacoma. Unfortunately, while we have the highest rate of two year degreed people we have one of the lowest in 4-year degrees. TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 22 of 25 She believes we are short changing this community and several others by not having a Two-Plus-Two Program. If we are ever to mount the challenges before us in competing with other nations of the world, we need to better educate ourselves, therefore, she will support this Resolution as presented. Mr. Johnson stated he would support this Resolution, but somewhat reluctantly and not because of Roosevelt Field. The Olympic Peninsula and Western Washington west of Seattle and Tacoma have been getting gypped for years and years on education and sees this as just a start to improve that situation. He did not believe Council had ever taken the position that education should suffer because of parks nor should parks suffer because of education. Mr. Waibel stated it was nice to take a positive stand on something that will be beneficial to not only this community but the entire County and surrounding Counties. #2018 M/S/C/U(Waibel/Estes, Overson, Colvin, Johnson, Horton, Horning, Estes) to approve Resolution #2363, supporting the implementation of a Two-Plus-Two Program at Olympic College. 9A - PUBLIC HEARING -RESOLUTION #2364, ADOPTING THE CITY,S 1991-1992 CAPITAL IMPROVEMENT PROGRAM Presented herewith for Council consideration is the City's draft 1991-1992 Capital Improvement Program (CIP). Several portions of the CIP have been previously reviewed by Council in the form of the Six Year Street Plan, the Water Comprehensive Plan and the Wastewater Comprehensive Plan. The general government portion of the CIP is presented in three priority levels. In priority one are projects for which funding is presently in place or for which firm commitments have been made. Priority two projects are funded by revenue bonds, grants and other agencies as well as general City funding. Priority three projects are dependent on passage of a Parks Bond issue. Rich Hanna, City Treasurer, stated this is the second year that the Mayor and staff have prepared a Capital Improvement document for Council consideration. He stressed it was not a "state-of-the-art" document given the resources staff have had available., however, he was proud of what they have to present. As far as to what the document hopes to accomplish, this plan will help coordinate the efforts of the different Public Works departments of the City, and provide a clearer direction to the Mayor and staff setting priorities for different capital improvements that have been identified as necessary. And, it should also help by increasing financial alternatives that are TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 23 of 25 available, most notably, providing access to the State Public Works Trust Fund. Public comment - none. Mr. Johnson raised the point that as of this date the Council had not been provided any evidence that the fire tower, at a cost of $400,000, is justifiable. He would like to leave the item in the plan but unfunded. In reference to the NAD Marine Park, he realizes that some improvements needed to be implemented, however, overnight camping and marina facilities were not a priority in that area. He recommended deleting funding for that proposal until that issue is solved. On the issue of the 4th Street building, he felt this entire issue needed to be discussed during the budget review process and at that time determine if $800,000 will be allocated for that project. Mr. Overson complimented staff for developing the CIP Program document. One of his favorite items in the plan is the proposal for a Downtown Senior Center and hoped to see it developed within the next few years. He expressed concern over the lack of public participation in discussing this issue and pointed out this program has a greater impact on the public than most anything Council undertakes. Mr. Hanna explained because the document was produced in the Treasurer's office, financial considerations were the driving force in establishing priorities, which may or may not be appropriate. They made no attempt within the three categories, labeled Priorities 1, 2, 3, to rank any of the individual projects to being a higher priority. The reason the 4th Street building was included as a Priority 1 project is because Bonds have been sold to finance that project and the money is available to use for that purpose only. Council may choose a change in direction as to how to approach that project, but for the time being the GO Bonds have been sold with the expressed purpose of carrying out that project. The same rational also applies to the fire tower project - Fire Bonds were sold May 1991. It is understood that just because Council approves the CIP Program staff does not have the authority to immediately build all the projects. Before the fire tower or anything else would be constructed, Council approval would have to be sought for a bid call or contracting of such projects. The funding allocated to that project is based on the cash flow projections which were provided when the Fire Bonds were sold. Mr. Colvlnquestioned the wisdom of having a building, such as TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 24 of 25 the 4th street building, sit idle without being utilized and he felt it would be better to rent out the space, which would generate revenue. President Hotton stated she did not believe Mr. Johnson's intention was to let the building sit idle. Mr. Johnson stated he believes the budget picture has changed and he was not sure that would be one of the options adopted during the budget process. President Horton stated when the Mayor brought the proposal to Council there was discussion on "long-term" expansion of City employment/staff and at this point it is quite evident there will be no additions to staffing, therefore, she felt it would not be appropriate to renovate a building for City expansion when it is not going to expand. Mr. Waibel stated the intent of the CIP Program is to make sure that projects are not undertaken that have not been reviewed through this process. That does not mean that everything included in the plan will be completed. He pointed out the importance of Council not violating this process. Mr. Johnson pointed out that even though some item were authorized under passage of Bond issues if it is determined they are not needed then they will not be built. He pointed out the possibility of staff saying to Council: "you approved a specific item as a number 1 priority, therefore, we have spent the funds". Mr. Waibel stressed the fact that staff cannot spend those funds without Council authorization. The CIP Program is not authorization to spend funds, but to look into those projects. Mr. Dawkins questioned if staff would have to come back to Council for authorization of fund expenditure? Mr. Hanna stated yes - first of all Council would have to grant expenditure authority in the Budget process. The finances of virtually anything contained in the CIP Program are of a magnitude that would require competitive bidding and Council would have to authorize award of such bids. #2687 M/S/C/U(Waibel/Dawkins) to pass Resolution #2364, adopting the City of Bremerton 1991-1992 Capital Improvement Program. #2717 M/S/F(Johnson/Overson) to delete funding for the fire tower, Fourth Street building and NAD Marine Park until Council has time to discuss them during the Budget process. Mr. Waibel stated funding sources are in place and can be used for only those purposes, except for the fire tower funds. Mr. Hanna stated the budget adjustment has already been passed by an amending ordinance authorizing the expenditure of the Bond issue as it relates to the 4th Street building. President TAPE #961 City Council Reg. Mtg. Minutes October 16, 1991 Page 25 of 25 Hotton stated that was true, the budget adjustment was approved and the building purchased, however, the authority to do the renovations is a separate issue. Mr. Johnson stated the reason he brought up the issue of withholding funding for the 4th Street building was due to concerns expressed by the Administration over anticipated 1992 budget constraints. Ian Sievers, City Attorney, stated that money would be tied by the Bond Ordinance. President Hotton stated the City still has to pay debt service on those funds. Mr. Estes stated out of the $800,000, part of it was the purchase price of the 4th Street building. He stressed the importance of maintenance repair to the roof of that building as well as wall bracing that is needed. Vote On Amendment: Amendment failed. In Favor: Opposed: Johnson, Overson, Horton Estes, Horning, Waibel, Dawkins, Colvin Vote on main motion: Unanimous vote. With no further business meeting adjourned at 8:57 p.m. RTON, Council President City of Bremerton KLM/LH/me cc: Normal Distribution File/Vault