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HomeMy WebLinkAbout07/13/88TAPE #557 COUNCIL APPR'OVFD JUL ? 1988 UNAPPROVED DRAFT ~0063 ~0079 CITY COUNCIL MEETING MINUTES JULY 13, 1988 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, July 13, 1988 at 5:30 p.m., with Council President Hank Waibel presiding. Council members present were Lon Overson, Lynn Horton, Spencer Horning, C. R. "Tiny" Collins, Morrie Dawkins, A1 Colvin, Shirley Marty Crutcher 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 Hank Waibel and Invocation was given by Reverend Jim Patten of Summit Avenue Presbyterian Church. CONSENT AGENDA A. Minutes of Meeting held - June 29, 1988, #AB88-182 B. Bid Award Recommendation ~ Timber Sale 3-88, High Tower, #AB88-183 M/S/C/U(Horning/Collins) to approve Consent Agenda as corrected noting the following change: Page 4, 3rd paragraph "Also, that the City must realize that while all situations do not require hiring journeymen personnel, this is one situation that requires experience. CLAIMS/WARRANT REGISTERS Vouchers audited and certified by the required by RCW 42.24,080, and those claims certified as required by RCW recorded on a listing which has been council. auditing officer as expense reimbursement 42.24,090, have been made available to the M/S/C/U(Colvin/Dawkins) on July 13, 1988, the Council does approve for payment those vouchers included and further described as follows: 37359 through 37516 in the total amount of $167,592.22. COUNCIL MEMBER REPORTS Mr. Overson reported that Fiscal and Budget Committee had met and discussed a variety of issues including: support in Attorney's office, potential contract for Block Grant Coordinator, reviewed list of vehicles in the City, particularly the Police vehicles and whether or not they were in alignment with the PAS Study and their recommendations (it appears they have aligned fairly well with the recommendation). Mr. Crutcher reported he had met with several groups and discussed issues relating to cruising and resulting litter left in the downtown area; employment in the City as well as Block Grant money going to different areas. Mrs. Horton reported she attended a seminar on July 11 and 12, Designs On Main Street, relating to ways to improve visual characters of downtown areas, including buildings and coordinating ideas to develop what you want your downtown to look like. Mrs. Horton noted that several communities have Design Review Boards, which some people may have negative feelings about, however, they do not need to be mandatory but may be voluntary and provide some incentives, such as tax incentives, that the property ownerS- can apply for in conjunction with the Design Review Board. ~'S- Horton noted that the City of Everett TAPE #557 City Council Reg. Mtg. Minutes July 13, 1988 Page 2 of 10 had been in the same condition as Bremerton but had made some major changes and improvements and extended words of encouragement to the City of Bremerton to not get discouraged but work for a better tomorrow. Mrs. Horton commended the Bremerton/Kits'ap County Visitor and Convention Bureau for its presentation during Council's Study Session on Monday, July !1. She particularly noted the Blue Pages in the Telephone Directory and the publicizing of Bremerton and Olympic Peninsula. Mr. Hornin~ had the opportunity to meet with a group of senior citizens. He noted that generally they are satisfied with what is happening in the City, however they are concerned with senior transportation in the community and particularly with the abusers of the transportation system. Mr. Johnson reported there are bald Eagles nesting in NAD Park and are doing well. The two Council Summer Interns are working with Municipal Research and City Attorney's office on wording of proposed Charter Changes which will be before the voters for the General Election. The Council's Computerized Bulletin Board has had about 100 users. Best news - work on the Kitsap Lake Park and boat ramp began today - July 13 and Mr. Johnson encouraged everyone to attend the band concerts series to be held in Evergreen Park. During Mr. Johnson's vacation along the Washington coast he observed how well kept the homes were in the Hoquiam/Aberdeen area and discovered they have a "Home Of The Month" program and hoped to see something similar develop someday in the City of Bremerton. Mr. Johnson is continuing to receive material on waste management from other cities and hopes to have information back to Council before any long-term decisions are made on waste management for Bremerton. Mr. Colvin reported he attended a State Tournament of sof~ball fastpitch (girls under 20) and commended the team members and their parents for their efforts in cleaning the field areas before they left. Both winning teams were from out-of-state. Mr. Cotvin received a letter from a citizen with an offer to provide a nights lodging in Coeur D'Alene, Idaho, for a Council member to learn what they have done to promote their area. Mr. Dawkins attended the Kivanis Air Fair, 75th anniversary of the Port of Bremerton. Also, he is assisting in the organization of a 40th reunion of the Gradrating Class of 1948 - Olympic College, which will be held Saturday, July 16 at the new Student Center with approximately 150 participants. Mr. Collins reported the Council Public Safety Committee will have a presentation on drug enforcement by the Police Department at the Committee's next meeting - July 20, 3:30 p.m. Mr. Waibel returned from a weeks vacation in Southern California and he also attended the Kiwanis Air Fair held Sunday, July 10. PUBLIC RECOGNITION Imo~ene Hanes, P.O. Box 1975, Southworth, WA, speaking on behalf of Kitsap County Minority Coalition which is composed of representatives from Civic Groups, businesses and community based organizations - expressed comments, concerns and questions in the following areas: 1. The City of Bremerton over the past 10 years has received over six millions dollars from the United States Department Of Housing and Urban Development: Question - what minority programs has the City funded and what minority programs are still being funded at this time? 2. What employment of minorities in key management positions TAPE #557 City Council Reg. Mtg. Minutes July 13, 1988 Page 3 of 10 does the years? City have to show in dollars received over the past 10 3. Has there been any response from 'HUD based on the lack of funding of minority programs and the lack of recruiting and hiring minorities in key management positions in the City of Bremerton? Ms. Hanes noted that the Coalition was concerned that min6rity employees are in the low to moderate income levels making up 74 of employees in full time jobs considering the minority population in the community is 154. 4. What plans does the hiring minorities? City have for actively recruiting and 5. What are the guidelines obtaining Federal contracts? for City employees relative to President Waibel requested the City Clerk to requested.questions to the appropriate departments. forward the 6A - ORDINANCE (FIRST READING) REVISING B.M.C. 2.28 EOUAL EMPLOYMENT OPPORTUNITY, #AB88-165 Revision to B.M.C. 2.28 establishes Equal Employment Policy, Affirmative Action Program and Discrimination Complaint Procedures for the City as part of the Bremerton Municipal Code. Marcerr Holsather, Affirmative Action Officer for the City of Bremerton, stated currently the Ordinance' relating to Affirmative Action simply states that by City Council action an Affirmative Action Plan will be adopted. The proposed ordinance changes that considerable, it adopts substantial portions of the Affirmative Action Plan and legislates the policy for the City. It reaffirms the equal opportunity policy relating to all employment decision, provides for an Affirmative Action Plan to be established and up-dated annually without needing City Council adoption, it provides the basis for appointment by the Mayor of a city-wide equal opportunity officer with funding provided in the Budget, it establishes a equal opportunity employment council of 8 City employees to assist in program compliance, employee orientation and community outreach. It also outlines a two-step complaint procedure available to employees to resolve discrimination complaints. This proposed change to the Bremerton Municipal Code provides the direction and requirements of the City's Equal Employment Opportunity policy with responsibility for compliance and development of the Affirmative Action Plan resting with the Mayor through the Equal Employment Officer he has appointed. Ms. Holsather noted that the City's updated 1988 Affirmative Action Plan is near complete and ready for publication and will be available to the public by July 31,1988. Phil Tomats, 2234 E. View, Bremerton, stated his support of the ordinance, however he thought the City should support some type of chart to monitor the program. Also, he questioned what would happen to the Equal Employment Opportunity Officer if the goals set are not met? President Waibel requested Ms. Holsather to explain the difference between the proposed ordinance and the Affirmative Action Plan. Ms. Holsather explained the proposed Affirmative Action Plan is a plan of approximately 65 pages which includes the ordinance as proposed, includes statistical information for the Bremerton area, the work force profile as of December 31, and an Affirmative Action Plan for 1988 and the goals set to achieve. Also, there is a quarterly report that presents all affirmative action statistics available and there is an annual report which is sent to the EEO effice in Washington, D.C. and is monitored on TAPE #557 City Council Reg. Mtg. Minutes July 13, 1988 Page 4.of 10 a quarterly basis at this time. ImoGene~Hanes, P.O. Box 197, Southworth, WA, stated she had two recommendations she would like to have considered: (1) the EEO Officer be qualified in the area of affirmative action and able tO car[y ~out the spirit of as well as the law of affirmative ac~ion~ {2) regarding establishing an EEO Council would like to see at; least one minority on the Council. Ms. Hanes noted that t.here--.!-~re a number of minority organizations within the County who ar-e standing by to assist the City in any way they can. Roy Lawson, 4151 Fir Drive, questioned why doesn't the City does not 'want to adopt the Affirmative Action Plan - the changes and amendments? President Waibel suggested Mr. Lawson speak with Ms. Holsather either after the meeting or during normal business hours. Mr. Collins thanked Ms. Holsather for a job well done and noted a recommended change to Section 2.28.030(a) which w~uld read: "Monitoring the effectiveness of the Plan and makin~ a quarterly report to the Mayor. The Mavor will make an annual report to the City Council". Ms. Holsather stated the Affirmative Act/on. Plan as it is written includes an annual monitoring plan and report to the mayor that includes various items, such as hires, disciplinary actions to federal contracts. President Waibel questioned the need to have Mr. Collin's recommendation in the proposed ordinance or if it might be required in the future? Ms. Holsather stated she saw no problem to incldde it in the ordinance...it is already ~n the Affirmative Action Plan as an annual report to the Mayor and a quarterly activity report is currently being provided to him. Mr. Collins recommended the following wording to Section 2.28.010(c) to read: All managers and supervisors will have an EEO/AA element in their performance apDraisal. Ms. Holsather stated since the 2.28.010 of the B.M.C. is the policy the proposed ordinance is not the proper place for such a statement, it'is in the Affirmative Action Plan which will be adopted as an Administrative Policy And Procedure of the City signed and directed by the Mayor. All elements of managers performance evaluations by ordinance for managers are on a form approved by Personnel. That elemeht will be added to the Personnel Management Performance Evaluation and will become a matter of administrative policy by adoption of the Affirmative Action Plan. Mr. Crutcher expressed his strong feeling that the City council should be involved and did not support being eliminated out of the process. Also, he supported the City Council being given an update at Council Study Sessions on a quarterly bas~s. Ms. Holsather suggested that considering Council's tight schedule for Study Sessions she would be submitting a written report in place of a verbal report. Mr. Crutcher stated that he preferred a verbal report on this issue. And, under Section 2.28,050(a)(i) Mr. Crutcher felt that the Supervisor should be 'aware of any discriminatory acts within the department and he suggested ellminating "or" from that paragraph. 'Ms. Holsather stated she.did not support his suggestion based on case histories and laws she has read - as it provides Ehe employee an option in case it was the "supervisor" who was initiating acts of discrimination, thereby giving them someone else to make their report. In all instances supervisors are notified when a compliant has been filed. Mrs. Horton stated her support to Mr. Collin's recommendation that all managers have a strong involvement in EEO/AA issues and is an element in their performance evaluation because the City needs to make a strong statement that we, as a City, need to improve EEO and keep up standards. Ms. Holsather stated she ~157i TAPE #557 City Council Reg. Mtg. Minutes July 13, 1988 Page 5 of 10 feels it is an administrative evaluation. function of any performance Mr. Colvin questioned who monitors the Affirmation Action Officer and how many individuals serve on the AA Council and are they all employed by the City? Ms. Holsather explained there are eight employees (2 are minorities) on the AA Council and the membership does not include anyone outside of City government and the objective was to assist in program compliance, do community out reach, assist with new employee orientation. Mr. Colvin supported the idea of having someone from within the community serve on the AA Council. Ms. Holsather further explained that employees have the option to go to the State Human Rights Commission and Federal Employment Opportunity Commission in Seattle and those avenues are open co all employees. During employee training this information is provided. She, as Affirmative Action Officer, is monitored by HUD through their audit program and the Mayor reviews all reports on EEO/AA activities. Mr. Johnson pointed out that the proposed ordinance is not just a Council documents but involves the Mayor and staff as well, working together to change what had been Council approving large statistical report each year. And, he felt that it makes more sense that the City Council set a policy which states that they desire a strong EEO program. Mr. Johnson supports the idea of managers personnel evaluation to include EEO criteria - to what extent would depend on the manager and specific needs for a particular department. Mr. Johnson also supported several comments from the public and suggested that they be inserted: (1) Section ~.28.030 - appointment of a city-wide EEO Officer...add "The Mayor will ensure the Equal Employment Opportunity Officer is properly trained and qualified"; (2) Section2.28.040 following #8 the first two sentences shall read: "The representatives listed above shall be appointed by the department head. The Mayor will establish procedures to ensure the Equal Employment OPPortunity Council contains the widest possible minority representation". M/S/C/U(Collins/Horton) to approve ordinance, on first reading, adopting substantive elements of the City's Equal Employment Opportunity Program as part of the Municipal Code and Amending B.M.C. 2.28, with the modifications to paragraph 2.28.010 (c), 2.28.030 Introductory statement, 2.28.030(a) and 2.28.040(a) (note: the recommended 1LLOdifiCatiOnS are underlined in the text prior to the stated motion.) 6B - ORDINANCE (FIRST READING) AMENDING THE NON-UNION MANAGERS SALARY ADJUSTMENT PLAN TO PROVIDE FOR MERIT INCREASES FOR NEW EMPLOYEES AND AUDITOR EVALUATION, #AB88-L73 The proposed ordinance addresses salary adjustments for new non- union managers. It sets a minimum six months of employment before these employees may be evaluated and qualify for a merit increase. Since merit increases incorporate longevity, and the evaluation is based on less than the normal one year review, the regular budget year merit increase is reduced proportionately. At most, a new employee may work 18 months without a merit increase under this proposed change. Dave Hiestand, Personnel Director, stated that the proposed ordinance is a cleaning up of a previous ordinance that had its founding with the F.S. James Study that occurred two years ago. One of the recommendations of the James Study was that since the managers were not included in the "longevity recognition plan", they should be placed on a merit plan based upon their performance. That ordinance then specified that every July Personnel Department would conduct a market survey of like size TAPE ~557 City Council Reg. Mtg. Minutes july 13~ 1988 Page 6 of !0 cities and disciplines to establish what they are doing salary wise to establish salary ranges and additionally review the Federal statistics on cost-of-living increases, and when performance evaluations were provided to the Mayor at the end of July he would review them as the final reviewer and establish a percentage of merit they were to receive, if any. The original plan, proposed by the James Study, specified that an individual performing f~r beyond or exceeding expectations could go up to an increment of an 84 merit increase, an average performer would received up to an increment of 44; and those falling in the unsatisfactory category would not receive a merit increase. Manager's performance evaluations were instituted in 1987 and $18,000 was included in the budget to support this particular point of the program. It was determined by the Mayor and Mr. Hiestand, after reviewing the 1988 budget, that the cost-of- living increase would be held at 2.54 and up to 24 for merit increases. After a complete calcalation? process, the managers ended up from .54 to 1.74 additional merit recognition. Mr. Hiestand briefly outlined the step-by-step process for determining the merit percentage. Funds required to cover the above mentioned increases amoux~t to $21,660.00, which meant there are funds left over. Upon revie~ it was determined that there were six employees who had not had performance evaluations at that poin~ because they were h~w. Mr. Hiestand pointed out that theoretically, a manager could go up to 18 months without a performanc~ evaluation or merit recognition. The Mayor decided the six employees would be evaluated first and then would be picked up with the residual amount of monies and recognize them where they fell out on the evaluation system. Mr. Hiestand noted that the Seattle CPI is a federally astablished value and the next one will be published Dn August 3, 1988. Mr. Johnson stated he had some general problems with the proposal: (1) City manager halaries are rising faster than managers in the general population of Bremerton; (2) managers that are ~ust "doing thefr job" should not be given a merit increase - meritorious would indicate something above and beyond their normal scope of respcnDibility; (3) control point keeps shifting... then making the determination of amount of payment after adjusting the control point fo~ th~ previous years work; (4) new employees ... six months is too short a period of time to determine if they are getting results. Mr. Crutcher expressed his opinion that if a City manager can be fired after six months it is also possible: to measure results accomplished in that time frame. Mrs. Horton stated her support of Mr. Johnson's concern over the levels of merit, noting that if someone is performing below average or average they do not deserve to be rewarded. And, she recommended raising the salary adjustment guide and granting merit increases to those individuals who have out performed expectations. Mr. Colvin questione~ if "merit pay" indicates above and beyond normal duties performed? Mr. Hiestand exlDlained that in the pay structure of the remainder of City employees there is a "longevity" feature built in. Managers have no longevity and the proposal provides an opportunity for them to be recognized for staying with the City and doing a good job. Mr. Colvin requested clarification... that merit pay is given for the job they were hired to do? Mr. Hiestand stated he disagreed with Mrs. Horton- that if someone is doing their job merit is not justified. It is the Mayor's policy that if a manager is not doing their job they are no longer part of the City so this plan would not trigger in the lower grades. The 34 managers in the City are placed in a difficult environment and -face challenges to accomplish tasks with limited resources. Mr. Hiestand stressed the importance of TApE #558 #0207 TAPE #557 City Counci~l Reg. Mtg. Minutes July 13, 1.9~8 '- Page 7 of 10~ having competitive salaries. Mr. Colvin questioned the statement made by Mr. Johnson that City manager Salaries were rising faster than federal managers. Mr. Hiestand briefly explained the influence of federal cost-of- living increases as well as Union pressures. Mr. Overson pointed out that the City Council is the body to approvelany and all pay raises and availability of funds will be a significant factor. Mr. Colvin raised the issue...where is the money coming from? Mr. Hiestand noted that funding has been budgeted. Mr. Hornin~ expressed concern that management has never had longevity and against the 44 merit for that category and would prefer the 44 lowered. Mr. Hiestand explained that is exactly what was done due to limi~gd funding. Mr. Hornina stated he did not support the 44 as it relates to 64 and 84. Mr. Crutcher pointed out it is in the City's best interest to keep good managers and to do that the City needs to keep up with the competitive market. Mr. Hornin~ stated the City cannot afford to keep junior level managers when comparing to other communities like Seattle. Someone who is just getting by does not deserve to be kept. Mr. Collins stated if we, the City, determine we want a full fledged journeyman, such as the position discussed in the City attorney office, we establish a salary commensurate to the going rate. If the City feels the position is entry level - training ground then that should be established. If someone is doing a far superior job then they should receive some monetary award and there should be only one granted. Mr. Collins recommended using only the "Far Excgeds Requirements" category and use only the cost of living. Mr. Hornin~ supported keeping the 84 up to the Mayor"s discretion. level and leaving the rest President Waibel suggested changing the "Salary Adjustment Column" to reflect "Maximum Annual Salary Adjustment" Mr. Hiestand stated funding available would be the determining factor. President Waibel questioned if the merit increment is added after the CPI is added and on top the two are applied to the original base. Mr. Hiestand explained the base is adjusted for the cost cf living and merit percentage is based on that new value. Mrs. Horton stated what the Mayor is doing the proposed Ordinance and suggested - proper increments. is not reflected in setting the levels at M/S/C{Oversgn/Colvin) to approve ordinance, on first reading, providing for initial merit salary adjustments for new non-union management employees and evaluation for the Auditor and amending Ordinance #4102. #0405 M/S/C(Horning/Overson) amend the motion to reflect titling Salary Adjustment column as "Maximum Annaul Salary Adjustment", leaving the 84 increment, removing the remaining four categories. Vote: In Favor: Oppose: Overson, Horton, Horning, Waibel, Collins Dawkins, Colvin Crutcher, Johnson Vote On Original Motion: ~0548 ~0892 TAPE #558 City Council Reg. Mtg. Minutes July 13, 1988 Page 8 of 10 In Favor: Oppose: Overson, Horning, Waibe!, Colvin, Dawkins Collins, Johnson, Crutcher, Horton 6C - ORDINANCE #4164 (SECOND READING) CORRECTING EMPLOYEE SALARY RANGES IN THE 1988 BUDGET, #AB88-179 M/S/C/U(Horton/Collins) to approve Ordinance #4164, on second reading, correcting salary ranges for employees and amending the 1988 budget ordinance (#4138). 7A - PUBLIC HEARING CONCERNING THE ANNUAL UPDATE OF THE SIX YEAR TRANSPORTATION IMPROVEMENT PROGRAM - RESOLUTION #2221, #AB88-184 RCW 37.77.010 requires the City to update its Transportation Improvement Program annually and file a copy of the adopted program with the Secretary of Transportation. Projects utilizing FAUS, UAB or Arterial Street Funds must be on the approved Transportation Improvement Program before funding can be considered. Dave Baker, City Engineer, stated this is an annual update to the Six Year Transportation Improvement Plan. A request was made to all Council members for any projects they wishes to add to the program and responses were incorporated into the update. One project that was questioned - Marine Drive intersection - this project has been left on the Six Year Transportation Plan so that if the right-of-way situation changes from what it is now, then work can continue on. As it stands now there is no intent to work on the intersection at this time. Mr. Johnson stated he did not support prioritized #5-Kitsap Way/Marine Drive intersection due to its being County along that area and preferred spending the designated funds elsewhere. If the area desires to annex into the City then he would support funding to improve the roadway. Mr. Johnson requested that item be moved to the very bottom of the priority. Also, he would like to add Lakehurst Avenue to the plan. Mr. Dawkins questioned if the City could be liable in the event of something happening in this intersection area if road conditions were not maintained in good order? Mr. Baker stated the entire intersection is within the City limits so anything that happens in that area would involve the City. Mr. Dawkins questioned if we could improve it a little to avoid a liability such as this without spending a lot of money? Mr. Baker stated the only thing pending at that location is to reinforce one of the strain holes handling the signals, however, this is not something that would normally be done on fedorally funded project. Mr. Hornin~ questioned #2, #3 and #4 - Kitsap Way extension - has effort been put forth to obtain additional engineering staff to move forward? Mr. Baker stated there is no additional engineering staff, however, they are working on the Oysterbay/Shorewood Drive phase presently. Phase 4 and Phase 5 are both currently being worked on. Mr. Hornin~ encouraged Mr. Baker to pursue this with Mayor Lobe and noted that any funds expended on' engineering services would be reimbursed to the City. And, Mr. Horning supported placing item #5 on the bottom of the list. Mr. Colvin questioned how priority positions were determined? Mr. Baker explained that priority on Items #I through #6 were determined in the past and what went first was basically where the federal money was received first'. The lower #7' and #8 were miscellaneous signal upgrades (included as an every year item) and #9 was determined from the pavement inventory. M/S/C/U(Overson/Crutcher) to adopt the Six-Year Transportation Program and approve Resolution #2~ ~,~ the modification that Hf T~f_tsa~ {Jay/Harine Drive move to Item #2~ and adding Lakehurst TAPE #558 City Council Reg. Mtg. Minutes July 13, 1988 Page 9 of !0 Avenue as Item #26 and that the rest of the items move up. 7B - PUBLIC HEARING TO APPROVE URBAN DEVELOPMENT ACTION GRANT APPLICATION, #AB88-185 The Department of Housing and Urban Development dispenses Urban Development Action Grant Funds to projects which meet urban development criteria. The City of Bremerton may qualify to receive such grants and may propose such a grant request for the July 31, 1988 deadline. Any grant approved by HUD can only be signed by the City after Council review and delegation of Authority to Mayor Lobe. Details of the presentation. grant program could be provided during staff Don Pratt, Director of Community Development, briefly outlined the intent of the request, noting the grant being requested is for a specific project - Cecil Collins, past Community Services Manager, worked with Anna Laurie, Attorney of Sanchez Paulson Mitchell & Laurie, Inc., putting together financing for a project for that law firm. Ms. Laurie and her firm are working with a consultant, Mr. John Finke, who works for the State of Washington-National Development Corporation and Chris Greenly who works for the Washington State Development Of Community Development. John Finke, National Development Council, 2015 Smith Tower, Seattle, a privat foundation, non-profit organization that works with governments doing economic development financing and are under contract wL, th the State of Washington. The UDAG program is an exciting economic tool available to cities like Bremerton - is out of the Housing and Urban Development Department and is their economic development vehicles. HUD makes loans to projects via grants to eligible cities with HUD itself negotiating rates and terms with projects. As the project pays the loan back the principle and interest are kept by the City. Mr. Finke noted that the proposed project is a very typical UDAG type project. In general UDAGs are private sector developments that meet four basic steps: (1) located in UDAG cities; (2) new investment of private capital; (3) create job opportunities in communities; (4) HUD will not award a UDAG to a City to loan to a projeJt unless HUD is satisfied that the project's economics dictate that the private firm will not be able to make the investment without the UDAG funding. Mr. Finke requested the City councll's sponsorship as a City of a request for a grant from HUD to the City so that a loan can be made to the requested project. Mr. Finke explained that the final request for City Council acceptance of the UDAG, if granted, would be some time in November, 1988. Anna Laurie, Attorney, 6Th Street Partnership, outlined 'the proposed building project as a. two story building with underground parking with additional parking on site. The building itself will be approximately 13,600 sq. ft., and about 12,000 sq. ft. net rentable. The cost to construct this building is between 1.3 - 1.4 million dollars. The bulk of the financing for the building will come from a private lender and the UDAG would serve as a second tier or as part of the equity contribution that the private lenders require. Jobs are being created in two ways: (I) hope to attract tenants from out-of- town; (2) HUD considers any building with 12,000 sq. ft. as creating additional jobs. Ms. Laurie urged the City Council to approve the application. Kathleen McCluskey, City Clerk, read ~ letter into the record TAPE #558 City Council Reg. Mtg. Minutes July 13, 1988 Page I0 of ~0 from Pete Flynn, Executive Director of Bremerton Main Street Association, supporting the request and noting that there has'i=not been a new building constructed in downtown Bremerton in a decade and this would allow that to happen. And it would alS6 form a partnership between the City of Bremerton and the private se~tqr. Mr. Crutcher requested clarification on the pay back of'.the..'toan. Mr. Pratt explained whatever terms are negotiated' ~Ltween Hud/City/Developer - payback, principle and interest;~E'wi-~.~ come to the City and can be spent on CIty projects but must. b~spent under the same restrictions as Community Block Grant funds... Mrs. Horton questioned if there was a time limit for spending those funds? Mr. Pratt stated when the money comes in it will establish cash flow within the Community Development funding and he was not aware of any time limit restrictions. Mr. Finke explained that funds repaid are actually treated as progra~ income so they will be included in the following years allocation. Mr. Hornin~ questioned if this would position in the event there was a default Laurie stated yes. put the City in second on the building? Ms. 21430 M/S/C/U(Collins/Colvin) to approve Development Action Grant request. the submittal of an Urban With no further business meeting adjourned at 8:00 p.m. KATHLEEN L. MCCLUSKEY, CITY CLERK APPROVED HANK WAIBEL, Council President City of Bremerton KLM/HW/me cc: Normal Distribution- File/Vault