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Home My WebLink About11/18/2015 DIGITAL RECORDING �I�JUN�L �� CITY COUNCIL MEETING MINUTES oEC (j � ZO1S Wednesday, November 18, 2015 The weekly meeting of the Bremerton City Council was called to order Wednesday, November 18, 2015, 8t 5:00 PM 111 COUIIC11 COflfel'e11C2 R00171 603 Of the NORM DICKS GOVERNMENT CENTER, 345 6�h Street, Bremerton, Washington, with Council President Greg Wheeler presiding. Council Members , present were Roy Runyon, Dino Davis, Leslie Daugs and Pat Sullivan. Council Members Eric Younger and Jerry McDonald were absent. Also present were Assistant City Attorney Amanda Harvey; City Clerk Shannon Corin; Council Assistant Christine Grenier; and Kevin Matthew, Information Services Manager. A CouNci� BRiEFitv� was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. President Wheeler announced that Council Member Pat Sullivan will lead the Pledge of Allegiance; and Pastor Mark Adrian of Community of Christ at Memorial Lutheran Church will provide the invocation. MAYOR'S REPORT—Mayor Patty Lent... • Brought forward Collette Berna, Parks Preservation & Development, who reported on the Manette Playfield Design Workshop held last night; announced that the next Manette Playfield Planning Meeting will be on December 15 beginning at 6:00 PM at the Senior Center; and was pleased to announced that the City has received a grant to make some much needed upgrades for fishing pier and boat launch at Lions Park; • Introduced Ellen Gustafson who shared that Kitsap Transit now has a Mobile App to assist riders with selecting routes and reserving rides; • Invited Tom Knuckev, City Engineer, to discuss the impact the recent weather has had on the Washington Avenue Project, who still believed the project should be completed by the end of the year; • Attended the "Coats for Kids" event held earlier today where area Firefighters (including Bremerton) presented coats to children at View Ridge Elementary School; and • Wished the community a very happy Thanksgiving. PUBLIC RECOGNITION Karole Johnson, Executive Director for Seeds of Grace, shared that local gardens are currently benefitting local sr.hools and service organizations like Bremerton Foodline; and that the group hopes to build 10 gardens in 2016 through support of the Seeds of Grace Bizarre from December 5 to 6 from 10:00 AM to 4:00 PM at the VanZee Hall at the Kitsap County Fairgrounds. Gale Gillespie announced that the Fraternal Order of Eagles in downtown Bremerton will be hosting a Dinner for the Indigent and Homeless on Saturday, November 21 from 11:00 AM to 1:00 PM; and thanked Kitsap Transit for their sponsorship of the dinner. Bernadette Luke shared her personal experience during a "Point of Time" Homeless Count and hoped society would be more compassionate towards the homeless. Vern LaPrath shared concerns about garbage along City roads; and asked that Council Members to consider the impact of new fees and taxes on seniors living on a fixed income. Glenn Hodae on behalf of residents in the neighborhood, expressed concerns and asked questions about the proposed street closure near Our Lady Star of the Sea Church. Responses were pro.vided by Wheeler, Davis, and Public Works Director Chal Martin; and Comments were added by Daugs and Runyon... City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 2 of 7 CONSENT AGENDA 5A— Claims & Check Register: Claim & Check Numbers 365972 through 366174 and EFT's 15471 through 15519 in the amount of$2,454,933.68; Regular Payroll for the pay period ending October 31, 2015 in the amount of$728,145.22 5B— Minutes of Budget Workshop— November 2, 2015 5C — Minutes of Meeting — November 4, 2015 5D— Minutes of Special Meeting — November 10, 2015 5E— Purchase of finro Emergency Generators from Cummins NW for Pump Stations OB-6 and EB- 3 . 5F— Professional Services Agreement with KPG Interdisciplinary Design for design of the Crownhill Elementary Sidewalk Project 5G — Professional Services Agreement with KPG Interdisciplinary Design for design of the Highway Safety Improvements Project Phase 2 Project 5H — Ordinance No. 5287 amending Ordinance No. 4875 and No. 5226 to extend the term of the Puget Sound Energy Franchise Agreement to November 30, 2017 There were no questions or comments from the public... 06:11:12 M/S/C/U (Runyon/Daugs) Move to approve the CorvsENT AGEN�A as presented. PUBLIC HEARINGS 6A— PUBLIC HEARING TO ADOPT RESOLUTION NO. 3253 APPROVING THE 2016-2020 KITSAP COUNTY/CITY OF BREMERTON CONSOLIDATED PLAN: Sarah AcV�aoui, CDBG Program Administrator, stated that on July 15, 2015, City Council approved the 2015 Work Program for the 2016-2020 Consolidated Plan. In compliance with the U.S. Department of Housing and Urban Development(HUD) regulations (24 CFR Part 91), the Consolidated Plan is adopted and submitted every five years. The City of Bremerton and Kitsap County entitlement grant programs, consisting of CDBG and HOME funds, implement this plan as a consortium. The Plan is prerequisite to receiving federal funds and also serves as the City's application to HUD for such funds. The current plan will expire on December 31, 2015. Preside�t Wheeler clarified that due a potential quorum situation, there will be no action tonight on Items 6H and 6B, but the items will be continued to a Special Meeting on November 23 when a full Council is expected... President Whee/er then opened fhe public hearing... Comments were provided by Wes Larson; and Mike Brown... With no further comments received, the hearing was closed to the public, and opened for discussion to the City Council... 06:23:23 Motion was made by Davis, and seconded by Runyon... With a comment provided by Runyon... 06:24:02 M/S/C/U (Davis/Runyon) Move to continue the Public Hearing to the City Council Special Meeting scheduled for November 23, 2015 at 5:30 PM. 6B— PUBLIC HEARING TO ADOPT RESOLUTION NO. 3254 APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDING RECOMMENDATIONS TO BE INCLUDED IN THE 2016 CDBG/HOME ACTION PLAN SENT TO THE DEPAR�'MENT OF - City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 3 of 7 HOUSING AND URBAN DEVELOPMENT (HUD): Sarah Achaoui, CDBG Program Administrator, summarized that on September 2, 2015 City Council approved the 2016 CDBG/HOME Policy Plan outlining the CDBG and HOME funding allocation process. Based on that policy, the program's Project Review Committee has developed 2016 funding recommendations for CDBG funding and the Coordinated Grant Review Committee has developed 2016 funding recommendations for HOME funding for Council consideration and approval. If approved, these submissions will be sent to the Department of Housing and Urban Development (HUD) in the City's 2016 Annual Action Plan. President Wheeler opened the public hearing... Wes Larson indicated that his comments are the same as those made during his testimony for Item 6A. Wifh no further comments received, the hearing was closed to the public, and opened for discussion , to the City Council... 06:30:45 Motion was made by Davis, and seconded by Runyon... A question was asked by Daugs...Comments were provided by Wheeler and Davis... 06:31:57 M/S/C/U (Davis/Runyon) Move to continue the Public Hearing to the City Council Special Meeting scheduled for November 23, 2015, at 5:30 p.m. 6C— PUBLIC HEARING ON REVENUE SOURCES FOR THE PROPOSED 2016 CITY OF BREMERTON BUDGET: Cathv Johnson, Financial Services Director, explained that tonight's public hearing is to take comments on the revenue sources for the 2016 Proposed Budget. The proposed budget anticipates property and EMS levy increases of the full 1% allowed by law, leaves the utility taxes/PILOT rates unchanged leaves, but changes the allocation, commercial parking tax rates unchanged, adjusts for the annual $20,000 increase to the B&O tax exemption rate, incorporates utility rate increases and includes interfund transfers between funds where appropriate, etc. Overall, revenue projections throughout all funds remain conservative. Ms. Johnson clarified that Council will be asked to take action tonight on the following General Business items: • (7A) Resolution No. 3255 re-establishing and amending City Rates and Fees for 2016 • (7B) Ordinance No. 5288 amending Chapters 15.01 and 15.06 of the Bremerton Municipal Code (BMC) and Ordinance No. 5266 relating to Assessments, Rates, Fees, and Charges for Water, Wastewater, Stormwater Services • (7C) Ordinance No. 5289 amending Section 3.50.050 of the Bremerton Municipal Code (BMC) relating to the Utility Taxes for Water, Wastewater and Stormwater Utilities; and • (7D) Resolution No. 3256 amending Resolution No. 3194 relating to an Interfund Loan to the Conference Center Operations Fund from the Equipment Rental Reserve (ERR) Fund And that action is requested at the November 23 Special Meeting on the following related items: • Resolution declaring Substantial Need relating to the Property Tax Levy& EMS Levy; and • Ordinance levying Property Taxes President Wheeler opened the public hearing... Comments regarding the proposed General Facilities Charge (GFC) were provided by Teresa Osinksi, Home Builders Association; and Joe Keller, Public Works Department... City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 4 of 7 With no further comments received, the hearing was closed... 6D— PUBLIC HEARING (1 of 2) ON THE PROPOSED 2016 CITY OF BREMERTON BUDGET: Cathv Johnson, Financial Services Director, explained that tonight's public hearing is to take comments on the 2016 Proposed Budget. Budget workshops were held on October 26 and 27 where an overview of the Mayor's proposed budget was presented to the Council. On November 2, after answering questions raised regarding the budget, the Council deliberated and requested changes to the budget as presented. Those changes have been incorporated in the presentation for tonight's hearing. The 2016 budget, as proposed, is a status quo budget with minimal program changes. Revenue Sources were discussed at the public hearing preceding this item. Total budgeted expenditures, excluding ending fund balance, decrease by 1.2% over the 2015 amended expenditure budget. The net change to staffing is .11 FTE. It is anticipated that $10.27M in Water/Sewer Revenue bonds will be issued to fund utility capital programs. President Wheeler opened the public hearing... With no comments from the public, the hearing was closed... GENERAL BUSINESS 7A— RESOLUTION NO. 3255 RE-ESTABLISHING AND AMENDING CITY RATES AND FEES FOR 2016: Cathv Johnson, Financial Services Director, summarized that each year, as part of the budget process, the various City departments review their charges, rates and fees for services and make recommendations on any changes needed. The attached includes recommended changes to fees charged by the various departments. There were no comments from the public... 06:57:24 Motion was made by Davis, and seconded by Sullivan ... Comments were provided by Daugs and Runyon; Questions were asked by Runyon; with responses provided by Ms. Johnson; Ms. Spencer, and Mr. Birkenthal... 07:00:18 (M/S/C/U) Move to adopt Resolution No. 3255 re-establishing and amending City Rates & Fees for 2016. 7B—ORDINANCE NO. 5288 AMENDING CHAPTERS 15.01 AND 15.06 OF THE BREMERTON MUNICIPAL CODE (BMC1 AND ORDINANCE NO. 5266 RELATING TO ASSESSMENTS, RATES, FEES, AND CHARGES FOR WATER, WASTEWATER, STORMWATER SERVICES: Cathy Johnson, Financial Services Director, explained that the City retained Financial Consulting Solutions Group (FCS)to perform a general facilities charge (GFC) update for water, wastewater and stormwater facilities, as well as a review of the City's misceltaneous fee schedule. The last GFC update was in 2009. The study analyzed existing and future expenses related to system growth, and determined the Equivalent Residential Unit"maximum allowable charge" for each utility. The City may charge less, but not more. However, should the City adopt lower GFCs than indicated by the analysis, the existing customer base would be subsidizing system expansion. Staff is recommending a methodology change for calculating wastewater GFCs. The change would base wastewater GFCs on water meter size, instead of the City's current methodology which uses fixture counts and other metrics. At the Council's request, staff met with the Home Builders Association, Association of Realtors and the Rate Payer Advisory group in a Stakeholder meeting September 29th to discuss the proposal. The HBA and Realtors were concerned about the impact the large GFC increase would have on new City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 5 of 7 home starts; also, concern was raised about wastewater GFCs for large residential developments, which the HBA and Realtors perceived as subsidizing these developments. In addition, the HBA and Realtors requested that the City adopt a process enabling GFC payments to be made later in the development process, rather than up-front. Also, the HBA and Realtors requested that the GFC increase be phased in over three years. This proposal adopts those requests, and in addition grandfathers the existing fee basis for current developments on the books. However, this proposal does not recommend adopting a lower GFC than recommended by the FCS study; nor does this proposal recommend reverting back to the old methodology for calculating the wastewater GFC. The FCS study also provided an analysis of the City's fees and charges for services provided. This analysis is straight forward; the fully-loaded labor rate calculation for City utility services is $67.38 per hour. Exhibit B incorporates this calculated rate. Finally, r�ot directly related to the issues above, Exhibit B incorporates 2016 rate increases for the City's three utilities— 1.25% for Water; 2.25% for Sewer; and 3.75% for Storm. These increases all track below the 2012 rate study expectations. These increases are necessary to support the operation and Capital programs of the City's three utilities. The proposed ordinance amends and updates BMC Chapters 15.01 and 15.06 and Ordinance No. 5265 relating to assessments, rates, fees, and charges for water, wastewater and stormwater services. The rates and fees set forth in the attached exhibits to the proposed ordinance are recommended by staff, comport with the FCS study, and include consideration of the Realtor and HBA inputs. Comments and questions were provided by Joe Keller, John Larson, and Richard Huddv; with responses provided by Chris Gonzalez (FCS), and Mr. Martin... 07:23:55 Motion was made by Davis, and seconded by Runyon...Questions and comments were submitfed by Davis, Daugs, Runyon, Sullivan, and Wheeler; with responses provided by Mr. Martin, Mr. Gonzalez, An_qie Sanchez Virnoche (FCS), Utility Operations Manager Wa�rne Hamilton, Ms. Johnson, and Ms. Spencer... 07:58:20 (M/S/C) (Davis/Runyon) Move to pass Ordinance No. 5288 amending Chapters 15.01 and 15.06 of the Bremerton Municipal Code and Ordinance No. 5265 relating to assessments, rates, fees and charges for water, wastewater and stormwater services. Voted in favor of Motion: Sullivan, Runyon, Wheeler Voted opposed to Motion: Daugs, Davis Motion carried: 3—Yes; and 2 — No 7C —ORDINANCE NO. 5289 AMENDING SECTION 3.50.050 OF THE BREMERTON MUNICIPAL CODE (BMC) RELATING TO THE UTILITY TAXES FOR WATER, WASTEWAT�R AND STORMWATER UTILITIES: Cathv Johnson, Financial Services Director, stated that the proposed ordinance repeals Ordinance No. 5224 and amends Section 3.50.050 of the Bremerton Municipal Code to amend language relating to the assessments of the utility taxes for water, wastewater, and stormwater utilities. Comments were provided by John Larson, and Mike Eliason, Kitsap County Association of Realtors... 08:06:03 Motion was made by Davis, and seconded by Sullivan ...Questions and comments were submitted by Sullivan, Runyon (including a Point of Order called by Davis), Daugs (including a Point of Order by Runyon), and Wheeler; with responses provided by Ms. Johnson... �� City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 6 of 7 08:13:57 (M/S/C) Move to pass Ordinance No. 5289 amending Section 3.50.050 of the Bremerton Municipal Code relating to the utility taxes for water, wastewater, and stormwater utilities. Voted in favor of Motion: Daugs, Davis, Sullivan, Wheeler Voted opposed to Motion: Runyon Motion carried: 4�Yes; and 1 — No 7D— RESOLUTION NO. 3256 AMENDING RESOLUTION NO. 3194 RELATING TO AN INTERFUND LOAN TO THE CONFERENCE CENTER OPERATIONS FUND FROM THE EQUIPMENT RENTAL RESERVE (ERR) FUND: Cathv Johnson, Financial Services Director, summarized that on June 19, 2013 the City Council approved Resolution No. 3194 authorizing an Interfund Loan to the Conference Center Operations Fund to finance the City's commitment to the Kitsap Conference Center expansion project. Revenue projections provided at the time the loan was approved have not materialized resulting in insufficient resources to make principal payments on the approved schedule. The proposed change to the repayment schedule takes into account rent payments for the third floor space due to Kitsap Transit beginning in 2019 and extends the repayment throughout the term of the Lease agreement including extensions. An accelerator has been included for earlier payment if additional funds are available. There were no comments or quesfions from the public... 08:17:02 Motion was made by Runyon, and seconded by Sullivan ...Questions and comments were submitted by Runyon and Daugs; with responses provided by Ms. Johnson and Arne Bakker, General Manager for the Kitsap Conference Center... 08:20:31 (M/S/C/U) Move to adopt Resolution No. 3256 amending Resolution No. 3194 relating to an Interfund Loan to the Conference Center Operations Fund from the Equipment Rental Reserve Fund. COUNCIL MEMBER REPORTS Rov Runvon reported that there are still many people without power due to the windstorm and encouraged residents to contact Puget Sound Energy at(888) 225-5773 for updates; and for flooding or drain problems, to contact the Public Works Customer Service Dispatch at (360) 473-5920. Dino Davis hoped for compassion for people impacted by the violence around the world this week; encouraged people to contact Odessa at the Fraternal Order of Eagles for more information about the Homeless Dinner this Saturday or to provide a donation by contacting (360) 447-8577. Leslie Dauas announced that Kitsap Habitat for Humanity will be dedicating new homes for Harris Court on Saturday, November 21 at 10:00 AM at 2153 SE Polar Star Lane in Port Orchard; will be attending the 94'h Anniversary Fil-Am Dinner Dance at the Fil-Am Community Center; thanked PSE and City Employees for helping the community during the storm; encouraged people to check on neighbors and family during the cold season, especially those without power; and hoped people would enjoy their time with their families and be thankful for what you have during Thanksgiving. Pat Sullivan wished everyone a safe and Happy Thanksgiving; and mentioned that she has a lot to be thankful for during the holiday season. Greq Wheeler encouraged volunteers to help with the Monthly Work Party at Kiwanis Park on Saturday, November 28 from 9:00 to 11:00 am; and announced that a City of Bremerton Community Meeting will be held on Monday, November 30 at 5:30 PM in the gym at Our Lady Star of the Sea Catholic School located at the corner of 5ih Street and Veneta Avenue where Public Works Director Chal Martin and Jeff Coombe, Project Coordinator, will provide an update on the proposed Pedestrian Plaza Project and Veneta Street Closure between 5tn 6'h Streets; and wished everyone a very Happy Thanksgiving. City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 7 of 7 President Wheeler announced that there will be a Special Meeting held on Monday, November 23 beginning at 5:30 PM in the Meeting Chambers. With no further business, President Wheeler adjourned the Council Meeting at 8:30 PM. Prepared and Submitted by: , � CHRISTINE G ENIER Council Assistant �st: „ �� SHANNON CORIN, City Clerk GRE WH LER, City Council President GW:SC:Is:c