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HomeMy WebLinkAbout11/15/2006 DIGITAL RECORDING e e CITY COUNCIL MEETING MINUTES Wednesday, November 15, 2006 ~~"-~l,i~iWs The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton, Washington, Wednesday, November 15, 2006, at 5:30 PM, with Council President Cecil McConnell presiding. Council members present were Nick Wofford, Will Maupin, Carol Arends, Mike Shepherd, Wendy Priest, Adam Brockus, and Brad Gehring. Council Member Dianne Robinson was absent. Also present were City Attorney Roger Lubovich; City Clerk Paula Johnston; and Legislative Assistant Lori Smith. The Pledge of Allegiance was led by Council Member Brad Gehrinq followed by the invocation provided by Council Member Carol Arends. President McConnell announced that a Pre-Council Session to discuss General Council Business was held in Council Conference Room 603 from 5:00 to 5:30 PM; and that Item 6A has been pulled from the agenda. MAYOR'S REPORT - Mayor Bozeman... . Thanked the Council for their diligent work in studying the budget; and Laura Lyon, Finance Director, and her staff for their excellent work in bringing this budget to the Council; and . Encouraged the Council to support the proposed modifications to the City's B&O Tax. PUBLIC RECOGNITION & ANNOUNCEMENTS - There were no comments tonight... CONSENT AGENDA A. Check Numbers 312643 through 312840; and EFT-9352 through EFT-9358; and EFT-9360 through EFT-9363 in the amount of $919,648.83 (#AB06-239) B. Minutes of Meeting - October 4,2006 (#AB06-240) C. Minutes of Meeting - October 11, 2006 (#AB06-241) D. Minutes of Meeting - October 18, 2006 (#AB06-242) E. Minutes of Meeting - October 25,2006 (#AB06-243) F. Minutes of Meeting - November 1,2006 (#AB06-244) G. Minutes of Meeting - November 8,2006 (#AB06-245) H. Budget Adjustment related to the Harborside Park Annex Building (#AB06-246) I. Lease Agreement between the City of Bremerton and Bremerton Area Chamber of Commerce (BACC) for approximately 3000 square feet of office space at 286 Fourth Street (#AB06-247) J. Budget Adjustment for Equipment Purchases towards a the New Police Building (#AB06-248) K. Cooperative Purchasing Agreement for Mobile Computer Terminal (#AB06-249) L. Resolution No. 3014, approving the Transfer of Real Property to the Washington State Department of Transportation (WSDOT) as part of the Sundry Site Plan for the Bremerton Transportation Center (#AB06-250) M. Purchase of Two Vaults from HANSON PIPE & PRODUCTS, INC. for Replacement of Vacated Fire Pump Test Pit at Old Capital Hill Fire Station (#AB06-251) N. Approval of Utility Easements, Equipment Transportation Agreement, and Schedule 74 Underground Conversion Agreement for Under-grounding of Utilities (#AB06-252) City Council Reg. Mtg. Minutes Wednesday, November 15, 2006 Page 2 of 5 Mr. Lubovich noted that two changes to the Lease Agreement in Item 51 were discussed during the Pre-Council Session: The removal of the CPI increase for the monthly rent amount; and a lower rental amount from $2,200 to $2,000 per month. 05:36:20 M/S/C/U (Priest/Arends) Move to approve the CONSENT AGENDA as presented. GENERAL BUSINESS 6A BUDGET AMENDMENT TO RECLASSIFY PARKS DEPARTMENT EXPENDITURES FROM PERSONNEL TO SUPPLIES AND SERVICES (1tAB06 253): Item was pulled from the agenda... 6B - REAL ESTATE PURCHASE AND SALE AGREEMENT WITH ROBERTO VICTORIA FOR PROPERTY LOCATED AT 102 & 108 OYSTER BAY AVENUE (#AB06-254): Phil Williams, Public Works & Utilities Director, explained that Roberto Victoria owns the property located at 102 and 108 Oyster Bay Avenue, which is adjacent to the Oyster Bay Complex. The home at 102 Oyster Bay Avenue was destroyed by fire in September. Staff proposes purchasing the property for expansion of the Public Works & Utilities facility. A commercial realtor was asked to provide an estimate of value for the property if the structures were removed, and that estimate is provided in an attached document. The owner has agreed to sell these parcels to the City for the estimated value of $140,000. There were no comments from the public. 05:41 :48 M/S/C/U (Arends/Maupin) Move to approve the Real Estate Purchase and Sale Agreement with Roberto Victoria; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented, and further authorize the Mayor to finalize and execute any and all documents necessary to close the transaction; and adjust the 2006 Budget to reflect the property purchase. PUBLIC HEARINGS 7A - SECOND OF TWO PUBLIC HEARINGS ON LEASE AGREEMENT WITH CLAREMONT EAST RETIREMENT APARTMENTS (#AB06-234): Wvn Birkenthal, Parks & Recreation Director, established that the First Public Hearing was held on November 1, 2006; and this was the Second Public Hearing as required by State Law. It was reiterated that this Claremont East has used 1,000 square feet of City right-of-way and 3,700 of paved park property, located north of the Sheridan Community Center on the south side of Juniper Street for employee parking since 1995. Claremont's owners have requested a formalization of this parking use arrangement. On September 26, 2006, the Parks Board made a recommendation to Council for the City to enter into a lease for the purposes of allowing Claremont East continued use of the park property. The Public Works Department has agreed to issue a permit to cover the 1,000 square feet of Juniper Street right-of-way. In consideration for the parking use, Claremont East will pay the City an annual fee of $5,076 and provide a one million dollar liability insurance policy for the parking area naming the City as an additional insured. The annual fee is based on the assessed value of the property and is adjusted annually for inflation for the duration of the 1 O-year agreement. Ed Wolfe, Attorney representing Claremont East Retirement, stated that he has worked with the City to develop this Lease and the proposal to pay for the use of the right-of-way; and encouraged the Council's support. President McConnell announced that this was the second of two Public Hearings; but that action on this item would need to be delayed because the Parks Protection Ordinance requires a unanimous vote of all nine Council Members for lease or sale of any Parks property. City Council Reg. Mtg. Minutes Wednesday, November 15, 2006 Page 3 of 5 05:45:23 M/S/C/U (Shepherd/Wofford) Move to continue deliberations and action on Item 7A until November 29, 2006. 7B - PUBLIC HEARING ON REVENUE SOURCES FOR 2007 BUDGET; AND ORDINANCE NO. 4987. lEVYING PROPERTY TAXES FOR COllECTION IN 2007(#AB06-255): laura lyon, Financial Services Director, described that Item 7B was actually two items; and indicated that this was the beginning of the City's formal process for reviewing and adopting the budget. This was the first of two Public Hearings to receive input from the public. President McConnell opened the "Public Hearing" on the 2007 Budget and Revenue Sources. There were no comments from the public. President McConnell then closed the "Public Hearing" on the Budget and Revenue Sources, and noted there would be no action by the Council until the second Public Hearing that is scheduled on December 6, 2006. laura lyon, Financial Services Director, continued with the second item under 7B, establishing that the City's property taxes are levied on an annual basis through passage of an ordinance. The proposed ordinance will implement a general property tax levy and a voted EMS levy at the statutory rate limit as well as bond redemption levy at a rate adequate to provide funds necessary to meet debt service obligations. There were no comments from the public. 06:12:50 The Motion was made as Council deliberations continued... Mr. Brockus referred to the recent overruling that occurred on Initiative-747 (which restricts property tax increases to 1 % unless otherwise approved by citizen vote), and asked whether that overturning would allow the City raise property tax amounts higher than 1 % while the issue is going through the Courts. Ms. lvon explained that Initiative-747 was overturned in a lower court, but that a Stay Order was recently enacted requiring the City to abide by the original legislation until the appeal process was fully concluded. In addition, it was noted that even if the overturning was upheld in the judicial review process, it is likely the legislature would shortly thereafter implement a different restriction on permitted increases. Therefore, it was her suggestion that the City confine to the more restrictive 1 % restriction until the final word on the subject is obtained either through the judicial review process or subsequent state legislation on the matter. Mr. Maupin reminded the public that the tax applies only to existing properties in Bremerton and not new construction. He further pointed out that the tax is only being raised by the maximum 1 %, while the current inflation rate is 3% or 4% and City expenses go up over 5% per year, but the City continues to provide services even though it is not easy as the City continues to "fall behind" financially each year. 06:17:15 M/S/C/U (Brockus/Maupin) Move to approve Ordinance No. 4987 levying property taxes for collection in 2007. 7C - PUBLIC HEARING AND ORDINANCE NO. 4988. AMENDING CHAPTER 3.48 OF THE BREMERTON MUNCIPAl CODE RELATED TO BUSINESS & OCCUPATION (B&O) TAX EXEMPTIONS AND TAX CREDITS. AND CHAPTER 3.50 RELATED TO REDUCING THE UTILITY TAX RATE FOR SOLID WASTE (#AB06-256): laura lyon, Financial Services Director, City Council Reg. Mtg. Minutes Wednesday, November 15, 2006 Page 4 of 5 stated that it is the intent of the City to encourage growth and attract new business and it is believed that providing a greater exemption of revenues from the City's business and occupation tax will serve to encourage expansion of existing business and attract new businesses to the City in combination with establishing a tax credit for the creation of new family wage jobs in the City of Bremerton. Also, in order to encourage and accommodate the successful completion of City annexation efforts, a three-year exemption from local business and occupation taxes for businesses located in an area that has become part of the City by annexation is proposed. Finally, a reduction in the utility tax rate for persons engaging in the business of providing solid waste collection service is proposed from the current rate of 10% to 9.5%. Ms. Lyon highlighted the changes, and recommended that they go into effect on January 1, 2007. President McConnell opened the "Public Hearing" on the proposed Ordinance 4988. There were no comments from the public. President McConnell closed the "Public Hearing", and opened Council deliberations. 06:35:10 The Main Motion was made as Council deliberations continued, particularly regarding options for use of the money if the utility tax rate for solid waste was not reduced from 10% to 9.5%... Mrs. Arends provided comments in support of this proposed ordinance; and commended the Finance Department for their work on this issue. Mr. Shepherd stated that in previous years, he supported a reduction in the utility tax rate, but now believes that this rate should not be reduced so the extra money could be set aside to cover expenses such as cleaning up illegal furniture dumping instead of using the General Fund. 06:40:05 An Amendment to the Main Motion was proposed to remove the reduction of the utility tax rate as Council deliberations continued... Mr. Maupin stated that this issue was briefly discussed in the Fiscal & Budget Committee and although he agrees with the concept of the proposal, he believes that more study should be done before a decision is made on how to solve it. Mrs. Arends agreed that it would be good for the City to have such a fund to deal with trash removal however she was hesitant to support the amendment tonight because it would place the burden on everyone in the City to take care of those who were not responsible. 06:58:32 A-M/S/F (Shepherd/Brockus) Amendment to Main Motion to eliminate the proposed reduction in the utility tax rate for solid waste in Chapter 3.50 of the Bremerton Municipal Code. Voted in favor of the Amendment: Brockus, Priest, Shepherd, Voted opposed to the Amendment: Arends, Maupin, Wofford, Gehring, McConnell Motion failed: 3-Yes; 5-No Mr. Gehrin~ provided comments in full support of this proposal to modify the B&O tax, which he believes will go a long way in helping to provide a friendly environment for future businesses; and he thanked Laura Lyon and her staff for their well-researched presentation. Mr. Maupin understood the reasons why it has been necessary for the City of Bremerton to have a B & 0 tax, specifically because the City has a unique situation of having a very large "business" here (the Puget Sound Naval Shipyard) which pays no taxes, but accepted that an alternative source of revenue would be necessary before eliminating the B&O tax. City Council Reg. Mtg. Minutes Wednesday, November 15, 2006 Page 5 of 5 07:03:35 M/S/C/U (Gehring/Maupin) Move to approve Ordinance No. 4988 amending Chapter 3.48 of the Bremerton Municipal Code relating to Business and Occupation Tax in order to increase the exemption of revenue subject to taxation, provide a three (3) year exemption from taxes for businesses located in an area annexed by the City, and provide a tax credit related to qualified jobs creation within Bremerton, and amending Chapter 3.50 of the BMC to reduce the utility tax rate for solid waste. COUNCIL REPORTS Will Maupin attended the Puget Sound Regional Council's Growth Management Policy Board Workshop last week; and was looking forward to the "Apple Cup" (UW vs. WSU) this Saturday. Carol Arends proclaimed that she too was a Cougar fan; and reiterated her thanks to the Finance Department for the Budget presented to the Council. Mike Shepherd reported on the good turnout for many of the First Friday Art Walk activities last week in spite of the rainy weather; and discussed his attendance at the Joint Council and Bremerton Housing Authority Committee meeting Wendv Priest echoed the comments made by Mrs. Arends about the excellent work done by the Finance Department during the Budget process. Adam Brockus read a letter submitted by Mayor Bozeman that established the Administration's commitment to act as "good stewards" of NAD and Forest Ridge Parks; and announced a neighborhood meeting would be held on Tuesday, November 28, 2006 beginning at 6:30 PM at the Manette Senior Center to discuss options for turning the existin~ reservoir Lid into a park. The property may soon be sold to a developer and is located at East 1i Street & lronsides Avenue. Brad Gehrinq provided a briefing on the work being done by the Public Works Committee; observed Veteran's Day last week by thanking all veteran's who serve in the armed forces; and with Thanksgiving soon here, acknowledged that we have much to be thankful for. Cecil McConnell reminded the public that no Council Meeting would be held next week on Wednesday, November 22,2006 due to the Thanksgiving Holiday. With no further business, President McConnell adjourned the Council Meeting at 7:12 PM. L RI SMITH Legislative Assistant CM:PJ:ls:cg