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Home My WebLink About02/01/2014 PLANNING SESSION I Saturday, February 1, 2014 $_ ! 1 9:00 AM to 3:00 PM a� Mayor's Conference Room Council Planning Session 8 30 — 9 00 AM Continental breakfast will be served 9 00 — 9 05 AM Opening Comments by President Wheeler 10 25 —10 35 AM 10- Minute Break Noon —12 30 PM 30- Minute Lunch 140 —1 50 PM 10- Minute Break 2 55 — 3 00 PM Wrap -up by President Wheeler Proposed Topics by Council Members for Discussion • Local Street Funding • Major Road Projects • Develop Checklist to ensure Mayor Road Projects are completed • Doing more work in -house to ensure no over expenditures • ERR Funding Policy • City Marketing, Planning, and Tourism o Lodging Tax Funding • Parameters set by State Law RCW 67 28 • Process then administered by City of Bremerton per BMC 2 38 1 Role of Lodging Tax Advisory Committee (Review applications and submit recommendations to Council) 2 Role of City Council (approve or deny funding to applicants) 3 Role of City Clerk (administer the contracts) • Business Development • Ensure codes /policies support small business growth • Enhancing Business Climate • Improved Permitting Process • Rezoning • Annexation • Improving Financial Sustainability of City Parks o Continue to look at ways to fund Parks • Alternative Fuels • Contract Compliance (This is responsibility of the Administration and Auditor) • Hold construction companies accountable to follow City Codes • Withholding permits • Work with neighbors /neighborhoods of East Park to ensure quality of life Money into new Road Construction /Maintenance Fund (non - arterial) 2014 2015 2016 2017 2018 2019 from water 116,653 264,351 374,940 494,302 620,002 680,630 from sewer 78,714 168,394 273,703 382,989 496,402 611,831 from stormwater 370 11,897 20,630 29,873 36,288 42,949 total 195,737 444,642 669,272 907,164 1,152,691 1,335,410 total for six years 4, 704,916 \ 8/26/2013 4 05 PM aggregates Lodging Tax Funding (2014) I. Lodging tax funds may be used as follows (RCW 67 28 1816) 1) Tourism marketing. 2) Marketing and operations of special events and festivals. 3) Supporting the operations and capital expenditures of tourism related facilities owned or operated by municipalities. 4) Supporting the operations of tourism related facilities owned or operated by non - profit organizations. (capital expenditures for tourism related facilities owned by non - profit organizations no longer authorized) Note — A municipality may choose only recipients from the list of candidates and recommended amounts provided by the lodging tax committee II. Definitions "Non- profit organizations" means 501(c)(3) & 501(c)(6) non - profit organizations. "Operat>iou" includes, but is not limited to, operation, management, and marketing. "Tourism promotion" means activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists. "Tourism- related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is (a)(i) Owned by a public entity; (ii) owned by a nonprofit organization described under section 501(c)(3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section 501(c)(6) of the federal internal revenue code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities. R \Legal\Lcgal\Files \Current Active Files \Lodging Tax \Outline - Lodging Tax Funding for 2014 docx ENHANCE THE BUSINESS CLIMATE 1. Eliminate manufacturing B &O tax. Supports Council's goal to eventually eliminate B &O tax. Eliminates possible barrier to recruit manufacturing businesses to SKIA (outside Port of Bremerton property). No manufacturing B &O tax revenue is currently received. 2 Extend B &O tax exemption if possible in SKIA (outside Port of Bremerton property). 3. Give businesses new to the SKIA (outside Port of Bremerton property) a three year exemption from B &O tax. 4. Exempt businesses receiving less than the B &O exemption level ($100K gross for 2014) from having to file B &O tax returns. Add check box to business license application /renewal form to allow business to indicate whether business expects to receive more than exemption amount for current tax year. 5 Create a B &O tax credit for contributions to qualified local business organizations (e.g. Downtown Bremerton Association, Chamber of Commerce, Manette Business Association, Charleston Business Association, etc.). Set annual citywide dollar cap (i.e. $25,000) and a dollar limit per business. Provides funding to organizations consisting of business owners for use in promoting economic development activities city business districts. PARKS FUNDING AND RELATED ISSUES 1. Install electrical sub -meter for fountain power. cost approx. $1000 to save at least $10000 /yr. 2. Streetscapes• compensate Parks Dept. for cost of maintaining greenery in streetscapes (approx. $20K /year). 3 Harborside Fountains: dedicate $50K /year of Lodging Tax revenue for 0 &M. 4 Establish capital reserve fund for downtown facilities (boardwalk, Harborside Fountains, Memorial Plaza). 5. Enact moratorium on new parks acquisition and construction unless associated with annexations. In newly annexed areas, talk to Bremerton School District about establishing point -use facilities /parks before purchasing property. 6. Parks Commission should consider cost of improvements and changes and provide funding recommendations to the Council. 7. Eliminate Parks Dept. by moving Parks Maintenance Div. into the PW Dept and Recreation Division into the Financial Services Dept. This would produce estimated annual savings of at least $120K. Give Parks Maintenance Div. responsibility for all green space maintenance on City property including right of ways. PW Dept. would be responsible for carrying out Parks capital improvements. ALTERNATIVE FUELS CONVERSION Plan for conversion to use of alternative fuels to achieve the following goals. 1. Reduce the City's fuel costs. 2. Reduce vehicle maintenance costs. 3. Meet requirements of RCW 43.19.648. 4. Reduce impacts to the environment. 5. Reduce dependence on foreign oil. 2012 City fuel usage in gallons by type of fuel 2013 City fuel usage in gallons by type of fuel. Replace gasoline usage with propane. Propane provides 73% of energy of gasoline. Calculate number of gallons of propane needed to replace annual gasoline usage Estimate cost of annual propane consumption. Police Dept. and Water utility are biggest consumers of gasoline. Cost of vehicle conversions. $6K per vehicle. Cost of fuel station. $1M for CNG; less than $80K for propane. Decide on single fuel or dual fuel conversions (e.g. propane /gasoline). Kitsap Transit plans propane fueled vehicle purchase and fuel station installation. Is KT a possible partner? Est. fuel cost of $1.50 /gallon. Is the Bremerton School District a possible partner? RCW 43.19.648 Publicly owned vehicles, vessels, and construction equipment — Fuel usage — Advisory committee — Tires., (2)(a) Effective June 1, 2018, all local government subdivisions of the state, to the extent determined practicable by the rules adopted by the department of commerce pursuant to RCW 43 325 080 are required to satisfy one hundred percent of their fuel usage for operating publicly owned vessels, vehicles, and construction equipment from electricity or biofuel The department of commerce shall convene an advisory committee of representatives of local government subdivisions, representatives from organizations representing each local government subdivision, and either (i) an electric utility or (u) a natural gas utility, or both, to work with the department to develop the rules The department may invite additional stakeholders to participate in the advisory committee as needed and determined by the department (b) The following are exempt from this requirement (i) Transit agencies using compressed natural gas on June 1, 2018, and (u) engine retrofits that would void warranties Nothing in this section is intended to require the replacement of equipment before the end of its useful life Compressed natural gas, liquefied natural gas, or propane may be substituted for electricity or biofuel if the department of commerce determines that electricity and biofuel are not reasonably available (c)(i) Rules adopted pursuant to RCW 43 325 080 must provide the authority for local government subdivisions to elect to exempt police, fire, and other emergency response vehicles, including utility vehicles frequently used for emergency response, from the fuel usage requirement in (a) of this subsection (ii) Prior to executing its authority under (c)(i) of this subsection, a local government subdivision must provide notice to the department of commerce of the exemption The notice must include the rationale for the exemption and an explanation of how the exemption is consistent with rules adopted by the department of commerce (d) Before June 1, 2018, local government subdivisions purchasing vessels, vehicles, and construction equipment capable of using biodiesel must request warranty protection for the highest level of biodiesel the vessel, vehicle, or construction equipment is capable of using, up to one hundred percent biodiesel, as long as the costs are reasonably equal to a vessel, vehicle, or construction equipment that is not warranted to use up to one hundred percent biodiesel