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HomeMy WebLinkAbout10/28/2025 - Regular - MinutesDocusign Envelope ID: C36AA2FB-635C-4C1A-9CCE-AA3BE2513F99 �Volt ORCHARD Meeting Location: Council Chambers 216 Prospect Street Port Orchard, WA 98366 City Council Minutes Contact us: Phone (360) 876-4407 cityhall@portorchardwa.gov www.portorchardwa.gov Regular Meeting of Tuesday, October 28, 2025 Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll Call was taken by the City Clerk as follows: Present: Scott Diener, Mayor Pro-Tempore, Position No. 3 Fred Chang, Councilmember Position No. 6 Heidi Fenton, Councilmember, Position No. 5 Robert Putaansuu, Mayor Eric Worden, Councilmember, Position No. 4 Jay Rosapepe, Councilmember, Position No. 2 Mark Trenary, Councilmember, Position No. 1 Absent: John Morrissey, Councilmember, Position At -Large Staff present: Public Works Director Ryan, Finance Director Crocker, Community Development Director Bond, Chief of Police Brown, City Clerk Wallace, and Deputy City Clerk Floyd. Audio/Visual was successful. Staff present via Zoom: City Attorney Archer 1. CALL TO ORDER A. Pledge of Allegiance Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA Moved by Mark Trenary; seconded by Heidi Fenton to Add to the Consent Agenda the excusal of Councilmember Morrissey for Personal Reasons. Motion Carried: 6 - 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton October 28, 2025, City Council Meeting Minutes Page 1 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 Voting Against: None Moved by Mark Trenary; seconded by Jay Rosapepe to Add to Business Items the approval of Change Order No. 10 to Contract 059-23 with Stellar J Corporation for the Marina Pump Station Improvement Project. Motion Carried: 6 - 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None Moved by Heidi Fenton; seconded by Eric Worden to Move Consent Agenda Item 4D Adoption of a Resolution Confirming Mayoral Appointments to Boards, Committees, and Commissions to Business Items. Motion Carried: 5 - 1 Voting For: Fred Chang, Mark Trenary, Scott Diener, Eric Worden, Heidi Fenton Voting Against: Jay Rosapepe Moved by Jay Rosapepe; seconded by Fred Chang to Approve the agenda as amended. Motion Carried: 6 - 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None 3. CITIZEN COMMENTS Robert McGee and Kristy McGee voiced concerns with cabaret licensing and presented Council with a letter approved by every business required to hold a cabaret license, asking the City to repeal POMC 5.20 'Cabarets'. Ken Westam is a food vendor and he voiced concerns with the process of trying to receive their street vending permit. 4. CONSENT AGENDA Moved by Jay Rosapepe; seconded by Scott Diener to Approve the Consent Agenda as amended. Motion Carried: 6 - 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None October 28, 2025, City Council Meeting Minutes Page 2 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 A. Approval of Vouchers and Electronic Payments Approval of Voucher Nos. 89618 through 89651 and 89657 through 89669 including bank drafts in the amount of $180,421.78 and EFT's in the amount of $433,621.36 totaling $614,043.14. B. Approval of Payroll and Direct Deposits Approval of Payroll Check Nos. 89652 through 89656 including bank drafts and EFT's in the amount of $289,926.05 and Direct Deposits in the amount of $297,071.15 totaling $586,997.20. C. Adoption of a Resolution Adopting the 2026 Legislative Agenda D Adoption of a Resolution Confirming Mayoral Appointmcnts to Boards, Committees and Commission5 E. Approval of Amendment No. 3 to Contract No. 042-15 with the South Kitsap Western Little League for a Real Property Lease F. Approval of Amendment No. 3 to Contract No. 043-15 with the South Kitsap Pee Wee Association for a Real Property Lease G. Approval of a Lease Agreement with South Kitsap Soccer Club, SK United, Youth Non -Profit Soccer Club for Use of a Portion of Van Zee Park H. Approval of Change Order No. 10 to Contact 059-23 with Stellar J Corporation for the Marina Pump Station Improvement Project I. NEW ITEM: Excusal of Councilmember Morrissey for Personal Reasons 5. PRESENTATION A. Community Event Center Update - Rice Fergus Miller Dean Kelly, Rice Fergus Miller, provided a presentation with included Plan Updates -Level 2, Plan Updates -Level 2 Restrooms, Plan Updates -Event Space Operable Walls, Plan Updates -Large Meeting Room, Landscape Updates -Overall Site Plan, Landscape Updates -Site Amenities, Floor Plan -Level 1, Perforated Railings -Design Intent, and Level 2 Restrooms-Alternate Options. Additional discussion was held regarding the unisex bathrooms and handwash stations, nanawall folding wall system, kids area teeter-totter or climbable structure, and covered structure closure to the side of the lift station. Council direction: Council would like more nautical options for the climbing structure and prefers a glass canopy for the covered structure. 6. PUBLIC HEARING A. Multi -Family Tax Exemption Ordinance Public Hearing Community Development Director Bond provided a presentation 'Multi -Family Tax Exemption (MFTE) which included MFTE Types, MFTE Basics, Previous MFTE Approvals, City Stabilized Vacancy, Average Rent, Proposed Ordinance 8 and 12 -Year Requirements, Proposed Ordinance Additional 12 -Year Requirements for Affordable Housing, MFTE Residential Target Areas, and Pros and Cons of MFTE. Mayor Putaansuu opened the public hearing at 7:23 p.m. Roger Gay voiced concerns with the MFTE as he does not like to see his property tax rise, October 28, 2025, City Council Meeting Minutes Page 3 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 especially when he has no control on whether they do or not. It moves the tax burden from developers and puts it on the shoulders of taxpayers, even ones who do not live in the City. He encouraged Council to present a plan to voters and get their support for a levy or bond. Amy Durgan voiced concerns with affordability and availability. She asked for the City to start working on a way to make the City more affordable and to charge the developers the fair price and not shift the tax burden to the people. Russell agrees with the first two comments, and the MFTE, by seeming aimed at reducing rent, poses a significant risk to our community and financial health. Growth will place increased demands on our local services including schools, fire districts, and infrastructure. Robert McGee said this is subsidized housing. You can call it whatever you want, but this is subsidized housing and it's forced upon the taxpayer. Sequim and Poulsbo did not opt into the METE because of the financial trade-offs. METE is not required by the state, but it is encouraged. He also voiced concerns about how the program affects property tax, the public benefit, and accountability. There being no more testimony, Mayor Putaansuu closed the public hearing at 7:39 p.m. Councilmember Chang noted the City received 2 letters [on the METE public hearing] from the Kitsap Builders Association and Alyssa Whittleton. Additional discussion was held on the program for property tax, market rents, apartment complexes, affordable units, zoning, and subsidized development. Each Councilmember spoke to the METE and voiced their concerns, noting they are not comfortable moving forward with the program. Mayor Putaansuu said we will not be moving forward with METE. He said staff brought this forward at the direction of Council. He appreciated the work staff did on this work. 7. BUSINESS ITEMS A. Adoption of an Ordinance Setting the amount of Property Tax to be levied for Year 2026, Pursuant to RCW 84.55.120 Moved by Scott Diener; seconded by Jay Rosapepe to Adopt an ordinance, setting the 2026 property tax levy and the amount of property taxes to be raised for the budget year of 2026. Motion Carried: 6- 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None B. Adoption of an Ordinance on the Mid -Biennial Review and Amendments to the 2025-2026 Biennial Budget October 28, 2025, City Council Meeting Minutes Page 4 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 Councilmember Worden recused himself at 8:02 p.m. Moved by Mark Trenary; seconded by Jay Rosapepe to Adopt an ordinance Amending Ordinance No. 018-24, the 2025-2026 Biennial Budget for the City of Port Orchard. . Motion Carried: 5- 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Heidi Fenton Voting Against: None Councilmember Worden returned to the meeting at 8:05 p.m. C. Adoption of a Resolution Authorizing the Mayor to Execute a Contract with Skillings, Inc. for the Ruby Creek Culvert Replacement Project Moved by Scott Diener; seconded by Heidi Fenton to Adopt a Resolution authorizing the Mayor to execute a Professional Services Agreement with Skillings, Inc. for the Ruby Creek Culvert Replacement Project in the amount of $665,682. Motion Carried: 6- 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None D. Approval of Change Order No. 10 to Contact 059-23 with Stellar J Corporation for the Marina Pump Station Improvement Project Moved by Jay Rosapepe; seconded by Scott Diener to Authorize the Mayor to execute Change Order No. 10 to Contract No. C059-23 with Stellar J Corporation for the Marina Pump Station Improvement Project to increase the contract by by $300,107.79, for a new contract total of $15,861,587.99 (applicable taxes included). Motion Carried: 6- 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton Voting Against: None E. Adoption of a Resolution Confirming Mayoral Appointments to Boards, Committees, and Commissions Moved by Heidi Fenton; seconded by Scott Diener to Adopt a resolution confirming the Mayor's appointments to the Boards, Committees, and Commissions, as set forth in the resolution presented. Motion Carried: 6- 0 Voting For: Fred Chang, Mark Trenary, Jay Rosapepe, Scott Diener, Eric Worden, Heidi Fenton October 28, 2025, City Council Meeting Minutes Page 5 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 Voting Against: None 8. DISCUSSION ITEMS There were no discussion items. 9. REPORTS OF COUNCIL COMMITTEES A. Council Advisory Committees Brief reports were provided for the October 13th Economic Development and Tourism Committee meeting, October 14th Finance Committee meeting, October 15th Land Use Committee meeting, lodging tax updates, and Coffee with Council. Councilmember Rosapepe reported on the October 28th Sewer Advisory Committee meeting. 10. REPORT OF MAYOR The Mayor reported on the following: • Tour of Seatac airport. • Issues with the Prospect Street building [730 Prospect Street] elevator. • Letter to the governor regarding intertie project. • Letter regarding nutrient content and sewer treatment plant. 11. REPORT OF DEPARTMENT HEADS Community Development Director Bond reported on a team building exercise from the State Auditor's Office. Chief of Police Brown reported on the police departments strategic plan and Stuff the Patrol Car food drive. City Clerk Wallace reported on Coffee with Council and informed Councilmember Fenton where to find information on boards, committees, and commissions on the City's website. Finance Director Crocker thanked the Mayor and Council for their support during the budget amendment process. Public Works Director Ryan voiced appreciation for Finance, Council, and Mayor [for support of their budget]. He also reported on road work on Bay Street, and an update of Givens Park. 12. CITIZEN COMMENTS Amy Durgan spoke about the community event center swings and having a kraken or octopus climbable structure and using some space as a small business incubator. 13. GOOD OF THE ORDER October 28, 2025, City Council Meeting Minutes Page 6 of 7 Docusign Envelope ID: C36AA2FB-635C-4O1A-9CCE-AA3BE2513F99 Councilmember Diener wonders if the Port of Bremerton will be driving piles during the FIFA event, asked for the benches downtown to be replaced by the Port, and mentioned there is a 55 -gallon steel drum that was converted to a garbage can. Councilmember Rosapepe asked for the old Port Orchard wooden sign down by the library to be removed because we now have a better sign downtown, November 29th is small business Saturday, and reminded everyone to vote. In response to Councilmember Rosapepe, Mayor Putaansuu gave an update on the fish culvert project on Mile Hill. A brief discussion was held on the Rite Aid situation. In response to Councilmember Trenary, Public Works Director Ryan reported on speed prevention bumps. A brief discussion was held regarding an art program or Arts Commission in Port Orchard which will be added to the next Council retreat. Additionally, conversation was held regarding budget priorities. 14. EXECUTIVE SESSION At 8:54 p.m., Mayor Putaansuu recessed the meeting for a 10 -minute executive session pursuant to RCW 42.30.110 related to a real estate matter. City Attorney Archer was invited to attend and Mayor Putaansuu announced no action will take place. Councilmembers Diener and Worden did not attend the executive session. At 9:04 p.m., Mayor Putaansuu reconvened the meeting back into session. 15. ADJOURNMENT The meeting adjourned at 9:04 p.m. No other action was taken. Brandy Wallace, MMC, City Clerk Signed by �bb rUdAAJA,SUU. 2RQF.A Q'JRZC-',AA7II Robert Putaansuu, Mayor October 28, 2025, City Council Meeting Minutes Page 7 of 7