07/19/2022 - Work Study - MinutesDocuSign Envelope ID: 2B271 B12-F34D-4397-985A-F66D18B567BE
City of Port Orchard
Council Meeting Minutes
Work Study Session Meeting of July 19, 2022
CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:31 p.m.
Roll call was taken by the City Clerk as follows:
Mayor Pro-Tem Lucarelli
Councilmember Chang
Councilmember Clauson
Councilmember Cucciardi
Councilmember Diener
Councilmember Trenary
Councilmember Rosapepe
Mayor Putaansuu
Present via Remote Access
Present
Present
Present
Present
Present
Present
Present via Remote Access
Staff present: Community Development Director Bond, Finance Director Crocker, Police Chief M.
Brown, City Clerk Wallace, and Deputy City Clerk Floyd.
Staff present via Zoom: Utilities Manager J. Brown
The meeting also streamed live on YouTube.
Pledge of Allegiance (Time Stamp 0:00:22)
Councilmember Clauson led the audience and Council in the Pledge of Allegiance.
1. Water Rates (Time Stamp 0:00:58)
Utilities Manager Brown explained this water rate discussion has been worked on by the Public
Works, Community Development, and Finance departments. She then introduced the City's
consultant, Katy Isaksen.
Katy Isaksen with Katy Isaksen and Associates provided a presentation, "City of Port Orchard Water
Rate Study", which included water rate study summary, state of the water industry executive
summary, rate study goals, water revenue, six -year water expense, Water Capital Program (CIP), six -
year water outlook, rates to promote conservation, residential rate structure, comparable 2022
water bills, larger meter sizes, non-residential base by meter size, and next steps.
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Additional discussion was held regarding base rates, time frame of new rate structure, moving to
conservation rates, public comments, and a franchise agreement to collect utility tax from service
areas serviced by Bremerton.
Council Direction: No direction was given to staff.
2. Utility Taxes (Time Stamp 36:18)
Mayor Putaansuu noted he spoke about utility taxes during the last discussion item.
Council Direction: No direction given to staff.
3. Parks Impact Fee Schedule (Time Stamp 36:25)
Community Development Director Bond reported the City currently charges park impact fees on
residential development. The City adopted a new parks plan on June 28, 2022, and in that parks plan
is a hefty capital improvement program. We don't expect to build all $120 million worth of projects
in the six -year term, but we identified a couple projects that are likely to move forward in the next
six -year period. A major funding source for those projects would be impact fees.
In the staff report, there are six projects, four which relate to, or are surrounding, the community events
center. The other projects are a portion of the Bay Street Pedestrian Pathway project and the
stormwater park at Sherman. These six projects require a total of $15,138,350 in park impact fee
funding. At the 57% impact fee funded proposal, and based on current development activity, the total
projected revenue through 2029 would be around $10 million.
There are three alternatives; set the park impact fee at 57% growth supported effective September 11t;
set the park impact fee at 35% effective September 1st then increase it to 57% on March 1, 2023; or set
the park impact fee per SFR at 35% effective September 1st then increase it to 46% on March 1, 2023,
and 57% on March 1, 2024. These were discussed at the Finance Committee meeting, and their
recommendation is to set the initial six-month step at 45% and increase to 57% on March 1, 2023.
Additional discussion was held regarding the costs of these alternatives and the revenue impacts of
each, expected development within the next six -years, total revenue costs, and school impact fees.
Council Direction: Staff was directed to bring forward an ordinance in which the initial increase
would occur on September 1, 2022; the second increase would occur on February 27, 2022. The steps
are proposed at 45% development funded and 57% development funded, respectively. The steps
for a single-family house would be that the current fee of $811 per dwelling would increase to $4,280
on September 1, 2022, and $5,421 on the following February 27tn
4. Public Works Structure (Time Stamp 54:45)
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Page 3 of 3
Mayor Putaansuu explained with the recent departure of the Director of Public Works/Engineering,
it allowed the City to take a step back and look at the structure of things. We are a growing City, and
an Organizational Assessment Survey was completed with our last salary survey. The survey
recommended a different structure in the Public Works department.
Mayor Putaansuu said as we talked about a new organizational chart, the Finance Director brought
up concerns related to cost allocations, particularly related to the Engineering Department. The
Planning Department can't be paid with enterprise funds, but our engineers do a lot of work on our
utilities. Our concern is we don't want to have any unattended consequences from these changes.
Next week, two new job descriptions are being brought forth that will split the Director of Public
Works/Engineering position to two different positions and make interim appointments with two
existing employees. The Assistant City Engineer becoming the interim City Engineer, and the Public
Works Supervisor will become the interim Public Works Director. We will then take the next sixty -
days to make sure we don't have any unattended consequences with this change.
The only thing undecided, is where, or who, the engineering group would report to.
More discussion was held on required certifications, right-of-way acquisitions and pathway
purchases, maintaining the current structure, and promotions and jobs of the current Planning
Department employees.
Council Direction: No direction was given to staff.
GOOD OF THE ORDER (Time Stamp 1:03:33)
Councilmember Clauson reported on the July 14t" USS Lewis and Clark 50-year reunion at Clayton
Park.
Mayor Putaansuu, Councilmember Clauson, and Councilmember Diener reported on the July 16tn
walking tour of Port Orchard.
Councilmember Rosapepe said the Seattle Times had a full page of things to do in Port Orchard.
ADJOURNMENT
The meeting adjourned at 7: 45 p.m. No other action was taken. Audio/Visual was successful.
DocuSigned by:
Brandy Wallace, MMC, City Clerk
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DocuSigned by:
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Robert Putaansuu, Mayor