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HomeMy WebLinkAbout12/18/91TAPE #978 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES JAN 8- #0030 #0049 DECEMBER 18, 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, December 18, 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 McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Horton and Invocation given by Chaplain Ben Belcher of Harrison Hospital. CONSENT AGENDA A. Minutes Of Meeting - December 4, 1991, #AB91-304 M/S/C/U(Waibel/Horning) 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 December 18, 1991, the Council does approve for payment those vouchers included and further described as follows: 141069, 141449 through 141463 in the total amount of $75,832.23; and Regular Payroll for the period ending 12/15/91, in the total amount of $399,156.12. COUNCIL MEMBER REPORTS Mr. Johnson extended a "welcome back" to Olympic Cablevision's Access Channel (39). With Christmas Season upon us, he suggested purchasing a 20-gallon mini garbage can for someone who is difficult to buy for. He was pleased to announce the negotiation team for the garbage collection contract has finished their work with Brem-Air and hopefully by the end of this week the City will be presenting to Council and the Mayor a recommended contract for solid waste covering a 10 year period. There will be curb side recycling in Bremerton and it will be implemented over the next 1-11/2 years, which is a.flexible item in the contract because the City is working hard to coordinate its efforts with what the County implements in the way of recycling. He emphasized recycling will be an TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 2 of 20 optional feature and it is hoped people will choose that service. There is a large list of commodities that will be picked up, including newspapers, aluminum cans, tin cans, magazines, glass containers, PET containers - clear "pop" bottles, HDPE containers - "milk jug type items", and other items the City determines as cost effective. Brem-Air will provide a couple of containers to the resident, one probably for papers and the other for all other recyclable items, and separation will be handled by the hauler. Regarding rates, single family residential service at curb side will be $3.55 for a mini-can, recycling rate is $2.89 (monthly charge). Rates for a standard 32 gallon can will be $6.23 plus disposal. Mr. Johnson pointed out the proposed rates are less than what other residents in cities within City County are paying. An optional "yard waste pick up" feature will be available at a $5.00 per month fee - bi-weekly pick up in the summer and monthly pickup during other times of the year. A "tag-a-bag" feature will be available for disposing of garage not fitting into garbage cans. Regarding the Pre-release Facility, he was somewhat upset with the way things are going. He thought there was a committee working on looking for an alternative site other than the one identified in the Kitsap Lake area. From what he understands, no new sites had been identified and progress was underway developing an Environmental Impact Statement on the current site. He did not support the idea of location such a facility in the Kitsap Lake area, however, he was supportive of such a facility. Mr. Colvin recently experienced hearing the Bremerton Symphony perform, which he found to be outstanding. He wished Bremerton citizens, fellow Council members, City staff and managers a Merry Christmas and Happy New Year. Mr. Dawkins reported Council members and staff met with State Legislators on Tuesday to discuss key issues. Mr. Estes reported he would be working on gathering historical information to assist the City's Downtown Planner incorporate some historical flavor when designing and planning for downtown. He asked that anyone in the community who had historical pictures or historical information to please contact him through the City Council office. He particularly would like to receive information relating to the tunnel system on 4th Street and Pacific Avenue. Mr. Homing noted since the City instituted the one hour parking restrictions in the downtown retail area, he was able to find on-street parking when he patronized a downtown business. He was concerned that not all of the downtown TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 3 of 20 businesses were aware of the "validation" program that is available for their use. The Model Ships Museum is looking for assistance (time, money, help and suggestions) from local trades people to help install a periscope. Anyone who could help on this project please contact Helen Devine at the Museum. Mrs. Hotton reported she also attended a short portion of the meeting with the State Legislators between spending her day interviewing firms to do a Warren Avenue Basin Study in order to remove the combined sewer overflows from that area. She noted this project will be a large undertaking for the City and she felt all of the firms interviewed were technically qualified. One of the things stressed to all those interviewed was their public participation and public relations aspects to their firms. As this project progresses, the public will be informed and brought along because it will mean a big project to the City. Actual construction will probably not occur unable about four years from now. PUBLIC RECOGNITION Mayor Louis Mentor read a Proclamation acknowledging the contributions of Joseph Levine, Symphony Orchestra Conductor for the past 12 years, who is retiring. Mayor Mentor proclaimed December 18, 1991, as Joseph Levine Day in the City of Bremerton. Mayor Mentor reported R.W. Hayward Insurance Company celebrated their 70th anniversary in Bremerton. This past week Mayor Mentor helped open a new candy store in East Bremerton/ Sheridan Village. He attended another "farewell" party for Admiral Clark, who will be replaced on January 9th by Captain George Yount. Starting this date, KBRO and Kitsap Transit are sponsoring a food drive. On Sunday, December 22, the Marines Toys For Tots will have a large event at the Pavilion to disperse gifts to needy children. A1 Duke, Medical Officer/Bremerton Fire Department, stated on November 22, 1991, at 3:30 AM, the citizens of Bremerton and the Bremerton Fire Department experienced one of the most tragic fires in the City's history. A fire was deliberately and maliciously set at 1542 "A" Spruce Avenue. The fire took the life of one of the occupants and severely injured the other. The only redeeming factor through this tragic event is there were three individuals prior to the Fire Departments arrival that took it upon themselves to enter a dark, hot, smoke filled apartment and tried to remove the unconscious occupants. Mayor Mentor presented a Resolution Of Commendation to the following individuals for their heroic TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 4 of 20 acts during this emergency situation: Greg Baleto, 1548 "C" Spruce; Sam Graham, 1538 "E" Spruce; Corey Antonio Hunter, 1542 "D" Spruce. Josie Greet, resident of the burned apartment, accepted the commendation for Sam Graham and expressed her profound thanks to Sam, Corey and Greg, who assisted them. Brian Hall, speaking on behalf of Jimmy Moore's family and Emanual Apostolic Church, publicly thanked Sam, Corey and Greg for their risking their lives in order to save others. BetsV Harris, Animal Control Officer, presented "Nestly", a 9 ~eek old brown lab puppy, who is available for adoption from Bremerton Animal Control. Anyone interested in adopting "Nestly" can do so by contacting the Animal Control office. Terry Br~mmage, Cambrian Avenue, related an on going garbage problem that is generated by one of her neighbors. She has already talked with Officer Moon, Health Department and Councilman Horning about this situation. This unsanitary condition has affected her health and the health of her two children. Mr. Homing reported that the Health Department had been notified of this concern. Elizabeth Bue11, High Avenue, stated her objection to the City having to clean up any toxic waste at the Roosevelt Field site, if found, as a part of the College's acquisition of that site through condemnation. She emphasized the heavy costs connected with such waste clean up and was speaking from personally experiencing such a situation. Mr. Waibel expressed concern that such an impression must be eliminated from the public. He emphasized State law requires the City, as owners, to clean up such toxic waste, if found. He noted the City knew that fact when negotiations were pursued with the College prior to condemnation proceedings and at that time the College was willing to take on that clean up responsibility. However, the City has since lost that possibility and the State will no longer let the City out of that liability. 6A - AUTHORIZATION TO 8IGN CONSERVATION GRANT AGREEMENTWHICH WILL UPGRADE LIGHTING AT LIONs8 ATHLETIC FIELD #1, #AB91-305 Council action is required for signature of all contracts. Connie Devaney, Grants Procurement officer, stated this is a small matching grant from Puget Power that will allow the City to upgrade lighting at Lions Field. It will result in an approximate $2,600 annual cost savings on that particular field. TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 5 of 20 Elizabeth Bue11, High Avenue, stated her only concern was the possibility of a change in position of those lights. Vicki Vanneman, Director of Parks and Recreation, stated all the residents in the area will be thrilled with the proposed change. It will require a reduced number of fixtures, lower poles and along with the new technology will enhance the entire area. Mr. Overson pointed out Council's backup material on this issue did not reflect a cost savings and questioned more information, if available. Don Hock, Parks Facility Supervisor, reviewed the cost savings proposed for Lions Field #1 - purchase and install 34 metal high light fixtures. In doing this, 152 existing fixtures will be removed. This phase of the upgrade will be done as soon as the wet season ends. The first year's calculated savings will be 66,829 kilowatt hours for a dollar savings of $5,346.00 (covering both fields). The estimated cost for installation of the new lights is estimated at $20,697.00 and Puget Power will invest a total, for both fields, of $14,786.00, with the City's Parks and Recreation Department General Fund contributing $5,900.00. President Hortonquestioned if the grant agreement was for one field? Ms. Devaney stated yes, and it was determined that the City would receive more funds if separate grant applications were submitted. Mr. Waibel noted through Puget Power's conversation program the City will eventually get back funding that is now being paid out through the cost savings achieved in the first year. He also noted Puget Power has a residential conservation program that can affect a cost savings in both residential upgrading and use of electricity. President Hortonquestioned if the City could use this program for street lights? Ms. DevaneV stated she was not sure but would look into the matter. Ian Shaw, resident, stated he had under taken some research about various conservation efforts and to his knowledge these grants are available to municipalities to reduce costs. Basically, Puget Power and Bonneville Power have reviewed their energy needs and determined it will be easier for people to conserve energy than for them to build new power plants. #1755 M/S/C/U(Waibel/Colvin) to approve signature of contract in line with all City policies and procedures. 6B - AUTHORIZATION TO SIGN CONSERVATION GRANT AGREEMENTWHICH WILL UPGRADE LIGHTING AT PARKS FACILITY - 6380 LEBO, #AB91-306 ! TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 6 of 20 Council action is required for signature of all contacts. Connie Devaney, Grants Procurement Officer, stated this is an energy grant that will help upgrade the lighting at the Parks and Recreation facility, saving the City approximately $500.00 annually. Public comment - none. Mr. Johnson stated in his opinion if Puget Power wanted to save electricity, they would provide the City money to use as a revolving account, to be returned to them in the future, so that natural gas service could be extended throughout the City. #1869 M/S/C/U(Waibel/Dawkins) to approve signature of contract. 6C - LEASE AGREEMENT BETWEEN CITY OF BREMERTON AND COMMUNITY THEATER, INC., #AB91-307 The Community Theater has had a lease with the City for 20 years for property located at 599 Lebo Boulevard. The Theater was built with community and E.D.A. funds. The Theater requested an early extension of the lease, which expires in December of 1992, before proceeding with installation of a $55,000central air conditioning system. In response to that request the City Attorney and Director of Parks and Recreation met with Theater representatives to review and update the current lease. A revised 10 year lease is presented this evening for Council's consideration. Vicki Vanneman, Director Of Parks and Recreation, stated during the month of November, she met twice with Community Theater representatives. At those meetings they addressed the theater group's request for an extension of their current lease. Over the last few years the theater group has accumulated funding to install an air conditioning system in the theater and felt it would be prudent to secure a lease extension before making that kind of investment in the building. She felt those discussion went well, which included a tour of the facility. This group is interested in re- establishing a good working relationship with the City, and particularly with the Parks and Recreation Department. Apparently, at the time the lease was developed, it called for some opportunity for the Parks Department to do programming in the facility. For whatever reason over the past twenty years, that opportunity did not present itself or the Parks Department did not look into it. The review of that lease gives the Parks Department an opportunity to consider that option, which she finds exciting. She received enthusiastic TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 7 of 20 responses from Recreation staff members over the discovery of this type of cooperative working relationship with the theater group. President Hotton pointed out the request is for a new 10-year lease, not an extension of the previous lease. The following representatives of the Community Theater group spoke in favor of the proposal: Bruce Hankins, President, Ian Shaw, Chris Balisky. Councilmen Colvln and Waibel emphasized the fact that Bremerton is very fortunate to have such a high quality theatergroup. Mr. Colvin questioned the numbers of children participating in theater activity? Mr. Hanklns explained there had been some work undertaken, with adult actors, to produce programs for children. They are now looking forward to much more involvement with children through the cooperative efforts of the Parks Department. Chris Balisky explained one of the reasons the air conditioning system is so badly needed is to allow them to produce shows during the summer months. Currently, their production season is limited to the cooler months of the year. Mr. Overson raised a point relating to the comment of "low insurance" by the City's Risk Manager? Ian. Slevers, City Attorney, noted that insurance coverage for replacement of the building, in the event offire or damage, was included under paragraph 11. The Risk Manager's concern over "public liability",is addressed in paragraph 12. Mr. Johnson questioned if there was anything in the agreement that upon availability of fund the facility could be reconfigured for the reception of originating cable televising? Ms. Vanneman stated currently the only thing to prevent the City from pursuing that type of programming could be the limited space. She would bring up this issue with the theater board. Mr. Johnson pointed out the image of Bremerton is not arts and culture, however, when people from the dance, modern/classic, theater, arts, etc., talk about what is available in Bremerton it is always "the best". He questioned why that doesn't change the attitude of people looking to see what is available in Bremerton? #2339 M/S/C/U(Colvin/Dawkins) to approve a 10 year lease. 6D- PROFESSIONAL SERVICES AGREEMENT - PENDERGAST REGIONAL PARK DESIGN, #AB91-308 A request for Statements of Qualifications for professional TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 8 of 20 design services to design Pendergast Regional Park was prepared, advertized, distributed and received was during the summer of this year. Sixteen firms responded and four were interviewed by a panel comprised of Mayor Mentor, Councilman Morrie Dawkins, Parks and Recreation Commissioner Richard Neville, Pendergast Committee Representatives, Engineering and Parks and Recreation professionals. This panel determined Bruce Dees and Associates to be the most qualified firm to perform this service. Vicki Vanneman, Director Of Parks and Recreation Department, stated in June, 1991, they advertised for Statements of Qualification, with the four most qualified firms being interviewed on July 23. At this time, Council is requested to consider approving a Professional Services Agreement with Bruce Dees and Associates for the design of Pendergast Regional Park. Bruce and his team, which includes Dave Fergus of Rice Fergus Architects, were the overwhelming choice of the selection panel, primarily because of their previous design efforts (premiere softball and soccer facilities in Western Washington -Fort Dent/Seattle and Meadowdale Park/Lynnwood). Other factors that were import to the selection panel, was Bruce Dee's attention to detail and his strong interest in public involvement in the design process. The agreement covers the design of "phase I" of the park at a cost of $248,805.00. The components tentatively planned for phase I includes five lighted softball fields, two unlighted soccer fields, one lighter youth baseball field, RV parking, a center building and associated parking and landscaping. Development cost of this phase have been preliminarily estimated at two million dollars. She emphasized the design fee is a bit higher than typically expected on a construction project, however, this agreement includes a number of items that are not typically included this type of agreement, i.e., topographic survey of the site (includes 2- foot intervals, all existing utilities, easements, right-of-way lines and property lines). Also included in the agreement is a geotechnical investigation, which evaluates soil and ground water conditions; and full time site inspection during the underground work of the construction phase. The Parks and Recreation staff and Pendergast Committee are very excited over this project and anxious to move forward with the project. TAPE #978 City Council Reg. Mtg. Minutes December 18, 1991 Page 9 of 20 Public comment - none. Mr. Estes stated he was concerned about soil settling of stump land? Bruce Dees, Bruce Dees And Associates, explained it is intended that excavation will encompass removal of stumps and the dirt below the root systems of those stumps as part of the leveling of the site, i.e. recompacting the entire area, not just the "root zone" area. Mr. Johnson stated he agreed with the 'contract as long as the City was taking the lead with the concurrence of other groups involved in this project. Ms. Vanneman explained all the major players in this project will be intimately involved with this project. The Oversight Committee has been formed - the joint operating board comprised of the County, Pendergast Committee and City representation. Mr. Collins questioned if the Parks Board and Pendergast Committee have any input into the selection of the architect? Ms. Vanneman stated yes, both groups were represented on the panel. TAPE #979 Mr. Colvin stated, for the benefit of the citizens, what is the funding source for this project? Ms. Vanneman explained the project itself is funded whereby the City is joining with Kitsap County and the Pendergast Committee to pull together the estimated two million dollars needed to build the complex. The City's share of that two million dollars will come from the Real Estate Excise Tax Fund, which was originally established for this type of project and is not available for uses such as filling potholes or funding a police officer. President Hotton stated under "Exhibit A - Scope Of Work, Step 3", she would like to amend Item C to read: Park Board and City Council/Kitsap County Commissioners Meeting (Mtg..#5). And, under Step 4, Item D, amending the wording as follows: Advisory Committee/Park Board/and City Council/Kitsap County Commissioners Meeting (Mtg. #6). Ms. Vanneman acknowledged the recommended additions and emphasized that it had always been the her intent to include the County Commissioners in this process. #0071 M/S/C/U(Waibel/Horning) to approve a Professional Services Agreement with Bruce Dees and Associates, including the addition of the Kitsap County Commissioners to Meetings #5 and #6. Mr. Homing questioned when construction would start on this project? Ms. Vanneman explained construction is scheduled for TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 10 of 20 June, 1992, with play commencing on the ball fields in spring of 1993. To accomplish this, construction of the fields will take place prior to finishing off other facilities of the project. Mr. Homing questioned if Ms. Vanneman was interested in receiving donations toward the project? Ms. Vanneman noted funds are still needed for the Pendergast Committee's $500,000 contribution toward this project and if individuals or businesses would like to donate towards this endeavor they many do so by contacting the Parks and Recreation Office. Mr. Dawkins stated as Mr. Horning was nearing the end of his career on the City Council, he wanted to thank him for his support on this project. 7A - ORDINANCE (FIRST READING) AMENDING THE ClTY'S 1991 BUDGET, #AB91-309 Actions taken since the last amending ordinance in July requires certain additions and corrections in order that budget continue to accurately reflect the financial operating plan of the City. Rich Hanna, City Treasurer, stated the total affect on the City-wide budget of the proposed changes is to increase the expenditure authority in the amount of $850,000. This would not affect the General Fund, which has been the subject of so much attention during the 1992 budget process. The most significant changes are: (1) to increase the expenditure authority in the Street Fund by $400,000, which was necessitated because most of the construction projects that were included in the 1991 Street Fund exceeded the Engineer's estimates. (2) General Obligation Bond Fund - last summer when the 1991 Fire Bonds the City raised the money approved by the voters for the replacement of fire apparatus and other equipment and in addition the City saved the tax payers a significant amount of money by refinancing a previously outstanding bond issue. It was an oversight at that time, on his part, that Governmental Accounting Policies and Standards required that the City budget reflect the receipt and disbursement into the refunding trust of those monies. The original budget adjustment on this item did not include that expenditure authority. The remaining budget adjustments are relatively minor and documented in Council's Agenda packet. Public comment - none. TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 11 of 20 #0351 Mr. Waibel expressed concern over the comment on the Budget Adjustment form ... "appears to be a non-impact on the budget". He pointed out it would have an impact on the individual budgets of those areas that are being charged more for reimbursable repairs than they expect to have. He also recalls in the contract with the vendor for the garage there were incentives for reducing those costs. He questioned why this worked for the first couple of years but not this past year? Mr. Hanna stated in reference to the comment contained on the Budget Adjustment form, there is no impact on the general fund of this adjustment. In looking at a broader context Mr. Waibel's comment was on point and spending this additional money would impact the City's budget when taken in that larger context. He was somewhat at a loss to answer his question why the overall vehicle repair costs are not going down. He would be willing to meet with the contractor and review this issue. The contract and dollars that move through this line item not only contain the routine mechanical repairs of vehicles but they also include body damage and things of that nature, which are outside of the incentive clauses contained in the contract. Mr. Colvin questioned if this amendment would an affect on Ending Cash of the 1991 budget? Mr. Hanna stated they had taken all of the budget adjustments into consideration when estimating the Ending Cash to be included in the 1992 budget. M/S/C/U(Waibel/Colvin) to approve ordinance, on first reading, amending Ordinance #4336 relating to the budget of the City of Bremerton for Fiscal Year 1991. 7B - ORDINANCE #4351 (SECOND READING) ADOPTING THE ClTY'S 1992 BUDGET, #AB91-303 Mayor Louis Mentor briefly reviewed the effort given in developing the budget and noted not everyone was pleased with everything included in that document. He believed comprises had been made by both the Administration and City Council. He noted the frustration by a number of City employees whose jobs were in and out of the budget several times during the process. Over the past two years he had worked hard to insure "job security" for the employees. He believes everyone who works for the City is important. From recent news articles, he was seeing more optimistic attitudes about the nation's economy and supported the attitude that "if you think you can do something" you are more apt to succeed. In the last two years everyone has worked hard to create a different attitude and image in the City. This change has brought about an increase in population, construction activity and business TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 12 of 20 licenses. He encouraged Council to pass the budget as amended. Rich Hanna, City Treasurer, stated referring back to Council Agenda Item 6D, Design contract for the Sports Complex, there is no expenditure authority for that contract in the 1992 budget. Therefore, he requested that the motion for passage of the ordinance, on second, include a provision to reduce the Ending Cash in Fund 109 and increase Capital Expenditures for the athletic complex by $250,000. President Hortonquestioned if this addition to the budget document would jeopardize the "second reading"? Ian Sievers, City Attorney, stated no. Public comment - none. Mr. Johnson explained that as Council looks at issues there are times when they do prioritize what is important and it must be done in public. He believes the City Council has great respect for City employees and when they are looking at a position, that is exactly what they are considering and there are times when hard decisions on positions have to be made. He did not believe there was any disunity between the administration and City Council. In regard to the economic health of the community, he is encouraged about the increased homepotting of Naval ships for the Bremerton area. Mr. Overson emphasized one of Council's primary functions is the budgetary function. He agreed there is a lot of reason to consider the optimism for the coming year, but he questioned if the November Revenue report reflected a down trend? Mr. Hanna stated yes, however, the County has been a little slower in dispersing property tax revenues this year than in 1990. Mr. Overson questioned if the County would be collecting interest on those unreleased funds rather than the City? Mr. Hanna stated the County is required by law to remit any interest earned to the City. Mr. Waibel stated in terms of the adjustment to Fund 109, he noted that was not a change in Council's intent and was part of the budget discussion the previous week. Mr. Collins stated in recent newspaper articles relating to the City positions it speaks to the total dollar value to that position covering only salary earned. He emphasized the fact that 1/3 of the total cost of a position relates to insurance/benefits, etc. #0727 M/S/C(Johnson/Colvin) to pass Ordinance #4351, on second TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 13 of 20 reading, as amended adopting the financial budget for the several funds of the City of Bremerton for the fiscal year 1992, and appropriating the amounts set forth in each budget to each fund in accordance with RCW 35.33,075, including a provision to reduce the Ending Cash of Fund 109 and increase capital expenditure for athletic complex of $250,000. Vote: In Favor: Opposed: Overson, Collins, Dawkins, Colvin, Johnson Estes, Horning, Waibel, Horton President Hotton stated for the record that contrary to Mr. Swanson's report in The Sun, she did not have Mr. Johnson, Mr. Horning or Mr. Overson over to her home last weekend or the weekend before. 7C - RESOLUTION #2368, PARKS & RECREATION FEES AND CHARGES, #AB91-310 The current fee structure at Sheridan Park Recreation Center and the Bremerton Municipal Pool went into effect on January 1, 1986. The Parks and Recreation staff felt a review Of those fees was long over due and therefore conducted a review and data gathering during the fall of this year. The proposed fee increases attached for your review were developed as a result of this review and in an effort to offset some of the ever increasing costs associated in the provision of quality recreational opportunities for the community. Vickl Vanneman, Director Of Parks and Recreation, explained the current recreation fees have been in effect since January of 1986. It has been an oversight on the part of her department not to bring a proposal for adjustments in fees to Council prior to this time. Wording has been included in the proposed Resolution which would establish a procedure to insure that fees would be reviewed and updated on an annual adjustment, based on the C.P.I. She also plans, with the Mayor's consent, to address a similar annual adjustment to the Athletic Fund fees and the Golf Course fees. The proposed fee adjustments reflected a modest 10% increase for use of the Parks Department building and a 20% increase for pool fees. She requested that the wording "Above rates include appropriate State and local taxes" be added to the bottom of Exhibit A. Public comment - none. Mr. Waibel noted he believed the fee increases were appropriately adjusted for a six year period, however, he was concerned with tieing, for perpetuity, increases to a C.P.I. TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 14 of 20 He preferred reviewing such fees on an annual basis. There may come a time when increased expenses could amount to more than what a C.P.I adjustment would allow, which would restrict the City from making the appropriate adjustment to cover such costs. Ian Sievers stated that was true and would become an automatic process unless someone would take a separate action to bring it before Council, either to increase or decrease. Ms. Vanneman noted it was her understanding that Council was interested in some type of annual adjustment process. Mr. Collins questioned which C.P.I. would be used? Ms. Vanneman pointed out the C.P.I included in the Resolution is "as published by the United States Department Of Labor for U.S. City Average". Mr. Collins did not want to use that C.P.I. due to its not reflecting Bremerton. He supported using the one specific to our locality. Kathleen McCluskeV, City Clerk, stated there is no Index for Bremerton. The C.I.P listed in the Resolution is the one used for all City leases and is for the Western Region. The only Index they could find for Bremerton was specifically a wage related Index. Mr. Waibel noted the State Employment Department does have a Bremerton MSA for wages only, which he has always supported using for wage considerations. Mr. Collins questioned if there would be any impact on the YMCA? Ms. Vanneman explained the pool fee increases will have no impact on the YMCA. Mr. Collins stated he would prefer a tickler system for updating the fees as opposed to a continuing Resolution. Mr. Overson suggested bringing such fees back each year as part of the budget process. The proposed Resolution is a result of discussions held during the budget review process. President Morton suggested that review of such fees be done prior to the budget review process so that any fee increases could be part of the budget process. Ms. Vanneman stated she believed there is an intent among some department heads to adopt this sort of scenario for adjusting fees. Mr. Johnson stated Council wants many of the fees and charges to be on a streamlined process and as long as they are reasonable he felt they should be enacted administratively. President Morton expressed concern that streamlining the process administratively would not allow the public the opportunity give input on such fee changes. Mr. Johnson pointed out Ms. Vanneman would be bringing a Resolution to Council for making changes to fees and the public would have the opportunity to speak on such issues. TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 15 of 20 #1410 #1470 Mr. Colvin stated he did not support the process of increasing fees automatically based on a C.P.I., and preferred having Council make that decision. Mr. Collins supported the idea of bringing such fee proposals to Council during the budget review process, which would be enacted as part of the total budget. M/S/C(Horning/Estes) to approve Resolution #2368, and pointed out if Council does not like the C.P.I inclusion in 1992, then they can resolve something different. Mr. Collins stated he could not concur in the Resolution because it states the C.P.I. will be used on January 1, 1993, which was opposite to what he addressed earlier on this issue. M/S/F(Colvin/Waibel) an amendment to the main motion that the Resolution states: "Be It Further Resolved that beginning January 1, 1993 and the beginning of every two years thereafter .... ". Vote On Amendment: In Favor: Opposed: Amendment to motion failed. Colvin, Overson, Estes, Horning, Waibel, Collins, Dawkins Johnson, Horton Vote on main motion: In FaVor: Estes, Horning, Dawkins, Johnson, Overson Opposed: Waibel, Collins, Colvin, Horton Motion passes. 7D - RESOLUTION #2369, AUTHORIZINGAN INTERFUNDLOANFROM THE EQUIPMENT RENTAL RESERVE TO THE STREET FUND, #AB91-311 By passage of Ordinance #4338, Council authorized the improvement of Lakehurst Drive through an L.I.D. The Street Fund does not have adequate resources to under write the authorized construction. This interfund loan will provide the financing necessary for L.I.D. No. 325 in an amount not to exceed $100,000. Rich Hanna, City Treasurer, reminded Council that last summer they did approve, by ordinance, the construction of improvements to Lakehurst Drive via the L.I.D. process. At that time, a preliminary assessment roll was presented to Council with the estimated cost of construction on the order of $71,000. The Street Department does not have the financial resources with which to underwrite the cost of construction TAPE #979 City Council Reg. Mtg. Minutes. December 18, 1991 Page 16 of 20 until the final assessment roll is put together and that process concluded. For that reason Council is being requested to approve an interfund loan and that financial assets of the Equipment Rental Reserve Fund, which are not needed in the near term, be utilized for carrying cost of the property until the final assessment roll concludes the final approval process. Public comment - none. Mr. Waibel questioned the fund number of the L.I.D. Fund? Mr. Hanna explained there is not L.I.D. Fund involved in this. The Standard Setting Board For Governmental Accounting had changed the way L.I.Ds were accounted for. Formerly, there was an L.I.D. control fund (#701) and all transactions of this type were dealt with in that fund. The Accounting Standards have changed and they dictate that street improvements, when financed by an L.I.D., are accounted for in the Street Fund. There still is an L.I.D Guarantee Fund in the City. The financial resources of that fund are unfortunately not quite sufficient to meet the present need. That fund was originally established as an added measure of security to Bond or Note holders who would purchased debt instruments secured by special assessments from the L.I.D. process. That fund has been unused for that purpose for at least five years. President Horton questioned if there was money in the L.I.D. fund? Mr. Hanna stated no, the L.I.D. fund was closed out years ago and the residual liabilities were all written off and assets transferred to the L.I.D. Guarantee Fund. Mr. Waibel stated for clarification that Council could not use the L.I.D. Guarantee Fund to guarantee another L.I.D. Mr. Hanna stated that was the original purpose of the L.I.D. Guarantee Fund because it had been so many years since the City had funded or accomplished a project with the L.I.D. There is no outstanding L.I.D. debt, so in the immediate context we are making no use of those monies. President Hortonquestioned if that fund was set by the City or by State statute? Mr. Hanna stated the fund was created by a City ordinance but it is the function of a State statute that requires that to be in place. Ian Sievers, City Attorney, explained after all debts and liabilities of L.I.D.s' have been satisfied the Guarantee Fund can be dissolved and deposited to the General Fund. Mr. Johnson stated the previous Mayor did just that during a "tight" budget year and Council agreed to that action. Mr. Waibelquestioned if a loan could be guaranted with almost 100% collateral of $75,000, with $65,000 guaranted collateral and obtain low interest on a loan? Mr. Hanna stated that TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 17 of 20 #1861 would be a possibility. The reason why he did not pursue such an alternative was due to the small size of the borrowing need. The overhead cost of securing that financing would not make it financially advantageous to the City. The construction phase of this project is almost complete and when it is finished the final assessment roll will be prepared, which will include a hearing on the final assessment roll followed by a 30 day period where the property owners have the opportunity to pay off their fair share under that assessment roll without any interest charges. Until that 30 day period comes and goes, the City does not know what longer borrowing needs will be. Hopefully, a good portion of those property owners will step forward and pay off the entire balance and any financing needs under this proposed interfund loan will be of a short term nature. Mr. Waibel questioned if Council could guarantee repayment to the Equipment Reserve Fund out of the L.I.D. Guarantee Fund on a schedule? Mr. Hanna stated the repayment mechanism proposed in the Resolution would be to directly pass through all of the payments on the assessments as they occur. If a significant portion of property owners do pay their entire balance up front in that 30 day grace period, then the repayment of the interfund loan would be a direct pass through of those monies back to the lending fund. President Hotton pointed out that in the event property owners did not pay within the 30 day grace period and chose to extend payment over a long period of time, the City could utilize the L.I.D. Guarantee Fund to pay back the Equipment Rental Reserve Fund. Mr. Hanna stated that would be a possibility and the only reason he did not propose using the L.I.D. Guarantee Fund as the source of this loan is that in the near term we need to finance the entire cost of the project and there are not enough assets in that fund for that purpose. M/S/C(Waibel/Estes) to approve Resolution #2369, authorizing an interfund loan to the Street Fund from the Equipment Rental Reserve Fund, with the amendment that the L.I.D. Guarantee Fund will be used to guarantee the timely replacement of the funds in the Equipment Rental Reserve after the 30 day grace period. Vote: In Favor: Opposed: Estes, Horning, Waibel, Collins, Dawkins, Colvin, Overson, Horton Johnson 7E - RESOLUTION #2370, REAUTHORIZING AN INTERFUND LOAN FROM GENERAL FUND TO STREET DEPARTMENT, #AB91-312 Resolution No. 2345 authorized an interfund loan of up to TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 18 of 20 $300,000 from the General Fund to the Street Fund for a period not later than December 31, 1991. Repayment of the loan prior to year-end has not proven to be possible. This resolution extends the term of the loan to December 31, 1991. Rich Hanna, City Treasurer, stated in staff comments under the budget amending ordinance of Item 7A, it has proven necessary to ask for an extension of this interfund loan. Repayment of. that loan within the current fiscal year has not been possible, however, the Mayor and staff have built the Street Fund Budget for 1992 around a commitment to full repayment of this loan prior to December 31, 1992. Public comment - none. President Hotton questioned if this loan would be paid back incremental through out the year? Mr. Hanna stated there has not been a repayment schedule specified in the Resolution, but does call for the complete repayment by the end of 1992. President Hotton stated if Council agrees to do this, she prefers seeing some type of incremental pay back. Mr. Walbel stated he did not support the idea of extending this loan andquestioned what guarantee does Council have that it will be paid back by the end of 19927 Mr. Hanna emphasized the Street Departments 1992 budget is built around repayment of this interfund loan. Positions were deleted from the Street Fund from 1991 to 1992, some rolling stock has been disposed of, along with other cost cutting measures in order to insure that the 1992 budget does provide a realistic repayment plan. Mr. Walbel questioned if a cash flow plan could be identified in order to make incremental payments on that loan. Mr. Hanna stated after discussing this with the Street Superintendent it was determined that a quarterly repayment schedule should be possible. Mr. Waibel stated he supported including a quarterly repayment schedule as part of the proposed Resolution. Mr. Homing pointed out that Council must take action on this item and questioned what would happen if it was not approved as proposed? Mr. Hanna explained the City is operating one of the major funds in the City in a deficit cash position, which is contrary to State law. Mr. Homing supported the idea of setting up a quarterly repayment schedule, unless Council desires to stipulate going three months and obtaining an outside loan. Mr. Johnson stated he would not support this proposal as presented. He believed interfund loans are a disease that can TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 19 of 20 #2370 cripple cities. He did support the proposal that the City obtain an outside loan. President Hotton questioned how long would it take to obtain an outside loan and what would it cost the City? Mr. Hanna stated if Council directed him to obtain an outside loan, he would propose including funding this cash flow need with the Tax Anticipation Note - issuing it at the beginning of each year and redeeming it in the following year. Mr. Johnson pointed out banks loan money and the cost of financing is a "wash" because there are Council rules that make sure that the interfund interest charges are the same as banks. President Hotton questioned wouldn't the City be giving our interest money to the bank instead of some other fund within the City? Mr. Hanna stated he would recommend that Council not make a decision based on the consideration of who would receive the interest on such a loan. Given this order of magnitude, the opportunity costs is not going to be a significant consideration. Mr. Co111ns stated he was concerned what would happen if the Street Department suddenly had added departmental expenses of "two weeks of snow" to deal with? Mr. Hanna stated the City is operating almost from a "0" working capital position in this fund and is not a comfortable position to run a fund of this size. In the event of such a "weather caused impact", the City would be in the position of having adequate working capital. Mr. Collins supported the idea of obtaining an outside loan. Mr. Overson stated in talking about the potential of using the TANto cover the needed funding, he pointed out TAN's were not done a few years ago and when it was acquired it was for a lack of funds at the end of the year. He cautioned against long term detrimental budget impacts. His support for this proposal is based on the implementation of a quarterly pay back schedule. M/S/C(Overson/Colvin) to approve Resolution #2370, reauthorizing an interfund loan from the General Fund to the Street Fund and that the pay back schedule be quarterly validated by Budget Adjustments on a quarterly basis. Vote: In Favor: Horning, Waibel, Dawkins, Colvin, Overson, Estes, Horton Opposed: Collins Abstain: Johnson TAPE #979 City Council Reg. Mtg. Minutes December 18, 1991 Page 20 of 20 With no further business meeting adjourned at 8:37 p.m.. KATHLEEN L. McCLUSKE~Y, City L~~OR~ON, Council President City of Bremerton KLM/LH/me cc: Normal Distribution File/Vault Clerk