09/19/2023 - Work Study - MinutesDocuSign Envelope ID: EA3713386-AA1 E-411 F-839D-79C100151 DA6
City of Port Orchard
Council Meeting Minutes
Work Study Session Meeting of September 19, 2023
CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:30 p.m.
Roll call was taken by the City Clerk as follows:
Mayor Pro-Tem Trenary
Present
Councilmember Chang
Present
Councilmember Clauson
Present via Zoom
Councilmember Cucciardi
Present
Councilmember Diener
Present
Councilmember Lucarelli
Present
Councilmember Rosapepe
Present
Mayor Putaansuu
Present
Staff present: Community Development Director Bond, City Clerk Wallace, and Deputy City Clerk
Floyd.
Staff present via Zoom: Finance Director Crocker
The meeting also streamed live on YouTube.
Pledge of Allegiance (Time Stamp 00:32)
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance
Mayor Putaansuu noted Finance Director Crocker is attending a conference, so the 2nd item on the
agenda will now be the 15t discussion item.
1. Limited Tax Exemption General Obligation (LTGO) Bond Delegation Ordinance (Time Stamp
01:16)
Finance Director Crocker explained Council adopted Resolution 059-23 on June 13, 2023, awarding
a contract for construction improvements to the City Hall facility which included replacement of
siding and windows, improvements to the HVAC system, minor interior renovations, and the
acquisition and installation of solar power equipment and other related capital improvements and
public amenities.
Council adopted Resolution No. 065-23 on June 27t", declaring its intent to be reimbursed from a
future borrowing for capital expenditures in connection with the City Hall Construction Project.
Council also adopted Ordinance No. 018-23 on June 271", amending the 2023-2024 biennial budget
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to provide funding for Contract No. 048-23 and to cashflow the City Hall Construction project until
the future borrowing could be secured.
The City Hall project is expected to be an $11 million dollar project and is currently under
construction. He further explained the funding sources and amounts, debt proposal, fund allocation
and annual payment range.
Additionally, he explained how the proposed ordinance authorizes the Mayor and/or Finance
Director to proceed with finalizing the bond issuance within certain parameters set out in the
ordinance; the bonds will be "limited tax general obligation" bonds; the maximum amount that may
be issued is not more than $11,120,000; the ordinance limits the borrowing cost; the maximum term
of the financing will be 20 years; the ordinance assigns to the finance department certain
administrative responsibilities; and schedule. This ordinance is scheduled to go before Council for
adoption at the September 26th Council meeting.
Additional discussion was held regarding the bond delegation, and clarification on the bond.
Council Direction: No direction was given to staff.
2. Multi -Family Tax Exemption (Time Stamp 17:50)
Finance Director Crocker provided a presentation '2023 Multi -Family Tax Exemption Impact' which
included 2019-2023 multi -family tax exemptions history, 2019-2038 forgone property tax levy
collections, revenues collected, future multi -family tax exemptions anticipated, and what is the
impact to the property owners of Port Orchard.
In response to Community Development Director Bond, Finance Director Crocker agreed it is partially
a tax shift, but also partially a loss of revenue.
Community Development Director Bond provided background on the program. Council adopted the
Multi -Family Tax Exemption in 2016 and was revised in 2019 to make it a more targeted program. 3
types of multi -family tax exemptions were created. Since 2016, the City has approved multi -family
tax agreements for 442 residential apartments. Out of these, 97 units are reserved for affordable
housing. In 2022, we finally saw rents go down for the first time. Housing supply is finally catching
up with demand.
He also spoke about the link between the housing supply and homelessness.
Additionally, the City has been looking into this program for over a year trying to find a way to make
the program work better, not cost as much or have better outcomes. We were waiting for the
Housing Action Plan (HAP) to see the recommendations contained in that report. The Council should
first decide whether it wants to continue with the program at all. If the Council wishes to retain the
program, a discussion should occur about the purpose of the program and the types of tax
exemptions that should be available. If certain exemptions are to continue, there needs to be a
discussion of where the exemption should apply within the City.
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Discussion was held regarding the benefits and downsides of the program, costs related to city and
citizens, different exemptions, and benefits to either pausing or repealing the program.
Council Direction: Council directed staff to repeal the Multi -Family Tax Exemption program so they
can investigate alternatives. Community Development Director Bond noted he could have the
repealing ordinance available at the first meeting in October [October 10, 2023].
3. Council Policy Regarding Bond/Levy Endorsements (Time Stamp 1:16:54)
The Council desires to adopt a policy to provide clarity for the public on the Council's approach to
endorsements or opposition of candidates/ballot measures.
Mayor Putaansuu said the Cities of Bremerton and Poulsbo have ordinances that do not allow Council
to take action in support or opposition of ballot measures.
Council Direction: Council directed an ordinance be brought before them that prohibits action to be
taken on a ballot measure or candidates.
4. Orchard Street Plaza Concepts (Time Stamp 1:18:11)
Mayor Putaansuu provided a presentation 'Orchard Plaza -Preliminary Concept Design' which
included site context, plaza areas, private/public space, site circulation, site concept, pavement
materials, bioretention and seating, seating and shade, parking lot and access, and small and large
event layout examples.
Additional discussion was held regarding an over the water structure, reshaping the shoreline,
community events center, timelines, stormwater elements and funding.
Council Direction: No direction was given to staff.
GOOD OF THE ORDER (Time Stamp 1:33:09)
Mayor Putaansuu reported last week was Senior Appreciation Week and he had lunch with former
Councilmember Carolyn Powers.
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The meeting adjourned at 8:04 p.m. No other action was taken. Audio/Visual was successful.
Brandy Wallace, MMC, City Clerk
L
cuSigned by:
Mark Trenary, Mayor Pro-Tem