06/14/2016 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of June 14, 2016
1. CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 7:00 p.m.
Roll call was taken by the City Clerk as follows:
Councilmember Ashby
Councilmember Chang
Present
Present
Present
Present
Present
Present
Present
Present
Councilmember Cucciardi
Councilmember Diener
Councilmember Donlin
Councilmember Lucarelli
Mayor Pro-Tem Clauson
Mayor Putaansuu
Staff present: Public Works Director Dorsey, Community Development Director Bond, Treasurer
Martin, City Attorney Cates, Long-Range Associate Planner Sallee and Office Assistant II Honeycutt
were also present.
A. Pledge of Allegiance
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
2. APPROVAL OF AGENDA
MOTION: By Councilmember Ashby, seconded by Councilmember Cucciardi, to approve agenda as
presented.
The motion carried.
3. CITIZENS COMMENT
No comments were made.
4. CONSENT AGENDA
A. Approval of Bi-Weekly Check Nos. 66682 through 66820 totaling $339,953.02; May's
Electronic Payment dates 5/1/2016 through 5/31/2016 totaling $2,472.28, and Bi-Weekly
Payroll Check Nos. Check Nos. 147021 through 147038 totaling $261,413.50.
Minutes of June 14, 2016
Page 2 of 12
B. Approval of May 17, 2016, Council Work Study Session Minutes
C. Approval of May 24, 2016, Council Meeting Minutes
D. Adoption of a Resolution Authorizing the City's Designated Grant Applicant to Submit
Salmon Recovery Project Grant Applications (Resolution No. 057-16)
MOTION: By Councilmember Clauson, seconded by Councilmember Donlin, to approve the consent
agenda as presented.
The motion carried.
5. PRESENTATION
There were no presentations.
6. PUBLIC HEARING
A. Public Hearing on Proposed Adoption of the 2016 Comprehensive Plan
Mayor Putaansuu opened the Public Hearing at 7:05 p.m.
Mike Eliason spoke on recommendations, provided by Kitsap County Association of Realtors, for
changes to the City's Comp Plan.
There being no further testimony, Mayor Putaansuu closed the public hearing at 7:10 p.m.
B. Public Hearing on the Proposed Assumption of the Rights, Powers, Functions, and Obligations
of the Port Orchard Transportation Benefit District
Mayor Putaansuu opened the Public Hearing at 7:10 p.m.
Gerry Harmon was concerned funds received via the Transportation Benefit District would be
credited to the General Fund. This information was corrected by Treasurer Martin and
Councilmember Clauson.
Elissa Whittleton stated that she understood what was being considered was an issue of
housekeeping, which she had no problem with, but explaining tab fees should be added to funding
sources already in place for these issues. And that none of these funds should be diverted for other
uses.
There being no further testimony, Mayor Putaansuu closed the public hearing at 7:15 p.m.
Minutes of June 14, 2016
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C. Public Hearing for the City's Six-Year Transportation Improvement Program
Mayor Putaansuu opened the public hearing, and there being no testimony, closed the public
hearing at 7:16 p.m.
7. BUSINESS ITEMS
A. Adoption of an Ordinance Adopting the 2016 Update to the City of Port Orchard
Comprehensive Plan
Community Development Director Bond informed that the Growth Management Act requires all
local governments in Kitsap County to update their comprehensive plans every 8 years, with a
current deadline of June 30, 2016. City staff and consultants have prepared a Comprehensive Plan
that includes updated information on City land use and building trends, provides the status of the
City's capital facilities and future needs, addresses updated state and federal regulations, and
identifies future planning efforts such as subarea plans for the City's adopted centers of local
importance.
The City has undertaken an extensive 2-year public outreach and involvement effort, with public
participation opportunities, public meetings and public hearings as documented in the attached
list. Comments were received from the Puget Sound Regional Planning Council, the Department of
Transportation, the Department of Fish and Wildlife and the Suquamish Tribe, and have been
addressed in the final draft Plan. The required 60-day notice of proposed adoption was sent to the
Department of Commerce on April 12, 2016. The Planning Commission held a public hearing on
each element of the Plan as well as the full document, and several elements of the Plan were
reviewed by the Council's Economic Development and Land Use committees prior to consideration
of the full plan at the Council's work-study meeting of May 17, 2016. All required public notice for
public meetings and public hearings has been provided.
Discussion was had to include suggested revisions made during the Public Hearing by Mike Eliason,
on behalf of the Kitsap Association of Realtors.
MAIN MOTION: By Councilmember Ashby, seconded by Councilmember Diener, to adopt an
ordinance with discussed amendments to the 2016 update to the Port Orchard Comprehensive
Plan.
AMENDED MOTION: By Councilmember Diener, seconded by Councilmember Cucciardi, to
approve amended motion changing then following to the Port Orchard Comprehensive Plan:
• Chapter 2, Land Use, Policy LU-23 - after "safely" add "and efficiently".
• Chapter 2, Land Use, Policy CN-39 - change "Require" to "Encourage"
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• Chapter 3, Housing, Policy HS-9 - Delete entirely
• Chapter 3, Housing, Policy HS-23 - after "for" remove "low and moderate income housing"
• Chapter 3, Housing, Policy HS-27 - after "importance" remove "over the development of
greenfields remove and rural areas."
• Chapter 4, Parks, Policy PK-27 - after "development" remove "and should be provided" and
"and commercial", adding "unless such access is shown to be incompatible due to reasons
of safety, security, or impact to the shoreline environment, and it should be provided for
new commercial development unless such improvements are demonstrated to be infeasible
or present hazards to like and property."
• Chapter 5, Natural Systems, 5.1 Introduction - add "ing" to "Protect", "encouraging the"
after "and", and "ment" to "enhance".
• Chapter 6, Economic Development, Policy ED-41 - add "and private" after "public"
• Chapter 8, Transportation, Policy TR-44 - change "required" to "encouraged"
• Chapter 9, Capital Facilities, Policy CF-25 - Delete entirely
The amended motion carried.
The main motion carried.
(Ordinance No. 014-16)
B. Adoption of an Ordinance Assuming the Rights, Powers, Functions, and Obligations of the
Port Orchard Transportation Benefit District and Repealing Section 12.125.020 and Amending
Sections 12.125.030 and .040 of the Port Orchard Municipal Code
Treasurer Martin stated that this Ordinance eliminates the separate entity status of the
Transportation Benefit District (TBD) with the City assuming the rights, powers, functions, and
obligations of the TBD.
Also noting the significance of eliminating the separate entity status is the recognition that the TBD
actions are those of the City Council, that the TBD is a blended component unit of city government,
and to gain reporting, staffing, and management efficiencies. The boundaries of the TBD are those
of Port Orchard.
Since its creation on December 8, 2015 the TBD board has not convened or taken any action. The
Ordinance provides that future actions of the TBD will be governed by City Council action.
MOTION: By Councilmember Cucciardi, seconded by Councilmember Lucarelli, to adopt an
Ordinance assuming the rights, powers, functions, and obligations of the Port Orchard
Transportation Benefit District.
Minutes of June 14, 2016
Page 5 of 12
The motion carried.
(Ordinance No. 010-16)
C. First Reading of an Ordinance Amending the 2016 Budget
Treasurer Martin informed that actions involving amendments to the Budget take two readings, to
which stated this being the first for amending Ordinance No. 031-15 Adopting the 2016 Budget.
Also, acknowledged that the public may comment on the amendment following its presentation.
Treasurer Martin stated the City Budget is written to capture revenue and expenses over the fiscal
year. During the year, changes to the Budget in both revenue and expenditures need to be
recognized by Budget Amendment. This Budget Amendment Ordinance recognizes changes to the
budget approved by Council action during the first half of the year. The Budget Amendment
Ordinance reflects the following:
1. $5,000 from General Fund No. 001 for contract services for the 2016 Puget Sound Regional
Council and Kitsap Regional Coordinating Council Countywide application process
2. $40,000 from Real Estate Excise Tax Fund No 109 for additional funding for Phase 2 of the
DeKalb Pier Project.
3. $58,000 from Impact Fee Fund No. Ill for additional funding for McCormick Woods Village
Park phase 2 design, permitting, and preparation of construction documents.
4. $25,000 from Water Sewer Fund No. 401 for geotechnical engineering for Well No. 9.
5. $15,000 from General Fund No. 001 for wages and benefits, supplies, and hiring costs
associated with Information Technology Specialist.
6. $800 from Street Fund No 002 for Wages and Benefits associated with Information
Technology Specialist.
7. $2,750 from Water Sewer Fund No. 401 for Wages and Benefits associated with Information
Technology Specialist.
8. $800 from Storm Drainage Utility Fund No. 421 for Wages and Benefits associated with
Information Technology Specialist.
9. $15,000 from General Fund No. 001 for Department of Community Development
Administrative Assistant wages, benefits, and supplies.
10. $9,500 from Cumulative Reserve for Equipment Replacement Fund No. 303 for Honda
Police Motorcycle purchase and equipment upgrade.
11. $131,250 from General Fund No. 001 for Information Technology equipment purchases and
Seitel Systems, LLC consulting services.
12. $22,300 from Water Sewer Utility Fund No. 401 for Information Technology equipment
purchases and Seitel Systems, LLC consulting services.
13. $5,000 from Storm Drainage Utility Fund No. 421 for Information Technology equipment
purchases and Seitel Systems, LLC consulting services.
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14. $7,500 from Street Fund No. 002 for Information Technology equipment purchases and
Seitel Systems, LLC consulting services
15. $12,154 to General Fund No. 001 proceeds from Washington State Parks and Recreation
Marine Safety Boating Grant.
MOTION: By Councilmember Cucciardi, seconded by Councilmember Lucarelli, to accept the first
reading of an Ordinance amending the 2016 Budget for the City of Port Orchard and to direct staff
to place an Ordinance on the June 28, 2016 agenda for second reading and final adoption.
The motion carried.
D. Adoption of an Ordinance Amending POMC Chapter 5.60 Fireworks to Allow the Prohibition
of the Sale of Fireworks under Certain Circumstances
Mayor Putaansuu presented the information pertaining to City Council's May 24, 2016, adoption of
an ordinance granting authority to the Mayor to ban the discharge of fireworks during periods of
extreme fire danger. Subsequently, there has been some discussion regarding whether the City
Code should also include the authority to ban the sale of fireworks under such conditions.
Mayor Putaansuu informed that under Washington state law, any ordinance placing stricter
controls on fireworks than exist under the state laws must be in place for one year before it
becomes effective. The beginning of the fireworks season for this year is June 28, 2016 (the date
fireworks are first allowed to be sold). Therefore, any ordinance granting authority to ban the sale
of fireworks must be adopted before that date if it is to be deemed effective before the 2017
fireworks season.
Mayor Putaansuu stated City Attorney Cates reviewed the Kitsap County code provisions granting
the authority to ban the sale of fireworks under extreme weather conditions and drafted a
proposed ordinance amending the provisions of POMC 5.60 to include a process for determining
whether a ban on the sale of fireworks is appropriate and granting authority to the City Council to
institute such a ban.
MOTION: By Councilmember Cucciardi, seconded by Councilmember Diener, to adopt an
Ordinance, Amending Port Orchard Municipal Code Chapter 5.60 Fireworks as presented.
The motion carried.
(Ordinance No. 013-16)
Minutes of June 14, 2016
Page 7 of 12
E. Adoption of a Resolution Regarding the Six-Year Transportation Improvement Program
Public Works Director Dorsey informed the council that based on Washington State Department of
Transportation requirements; cities are required to submit their six-year transportation
improvement plan (TIP) annually. Provided in the Agenda Packet is a copy of the City's TIP which
covers the years 2017-2022. This document is required to be financially constrained, which means
that project funding (either secured or planned) must be realistic based on the City's budget. The
City has transportation needs that include upgrading its' street and pedestrian facilities and
providing maintenance activities on its streets and sidewalks. Federal and State funding, for the
most part, is available on a very competitive basis. Public Works Director Dorsey noted that the
City has to look at innovative ways of funding transportation shortfalls such as forming Local
Improvement Districts (LIDs) by which residents agree to tax themselves to do these improvements
or Transportation Benefit District's. More discussion on this issue will be part of the City's
upcoming budget preparation.
Council recognized the TIP contained the projects which will be necessary during the next six years
and are reasonably constrained. Council was reminded TIP projects are eligible for Impact Fee
assessment.
MOTION: By Councilmember Donlin, seconded by Councilmember Diener, to adopt a Resolution
for the City's Six-Year Transportation Improvement Program for the Years 2017-2022.
The motion carried.
(Resolution No. 058-16)
F. Approval of a Personal Services Agreement with Jim Freeman of Coldwell Banker Park Shore
Real Estate for Broker's Price Opinion on City's Real Property for Leases
Councilmember Clauson left the room declaring a possible conflict.
Mayor Putaansuu noted that Councilmember Clauson would recuse himself from the room. Mayor
Putaansuu then stated that the City entered into lease agreements with: (a) Kitsap Transit in March
1996 for a portion of the Port Orchard Library building for use as an office and workshop space; and
(b) Ronald D. Ness & Associates in June 2011 for a portion of the City right-of-way adjacent to its
building for use as a parking lot. Both of these leases are up for renewal, and the City is seeking an
independent Broker's Price Opinion on the value of the leased premises under these two leases in
order to ensure the City is obtaining fair market value for these City-owned properties.
The City sought and received quotes from the following Real Estate Brokers for this work:
Gary Anderson, G. Anderson Group, LLC $500 per property
Jim Feeman, Coldwell Banker Park Shore Real Estate $200 per property
Art Locke, Windermere Real Estate $500 per property
Minutes of June 14, 2016
Page 8 of 12
MOTION: By Councilmember Diener, and was seconded to authorize the Mayor to execute a
Personal Services Agreement with Jim Freeman of Coldwell Banker Park Shore Real Estate for
Broker's Price Opinions on the City's real property in relation to the Kitsap Transit and Ronald D. Ness
& Associates leases in an amount not to exceed $200 per property.
The motion carried.
(Contract No. 059-16)
Councilmember Clauson returned to the room.
G. Approval of a Contract with the Port Orchard Independent as the City's Official Newspaper
City Attorney Cates presented the following information, on the bidding process of the City's
Official Newspaper, stating that annually RCW 35.23.352(7) requires second-class cities to
designate an Official City Newspaper. The newspaper shall be of general circulation within that City
or town and shall have been published regularly, at least once a week. Request for Newspaper
Publication Services were published on Friday, May 20, 2016 and May 27, 2016, with bids being
received by Friday, June 3, 2016.
The City received the following bids:
Port Orchard Independent:
Cost per single column inch $2.40
Cost per additional line $0.24
Circulation Numbers as Audited by Circulation Verification Council:
City of Port Orchard 4,690
South Kitsap Urban Growth Area 4,911
MOTION: By Councilmember Lucarelli, seconded by Councilmember Ashby, to authorize the Mayor
to execute an agreement with the Port Orchard Independent as the City's Official Newspaper in
accordance with Port Orchard Municipal Code Chapter 1.16 and RCW 35.23.352.
Kitsap Sun
Cost per single column inch
Cost per additional line
$3.29
$0.33
Circulation Numbers as Audited by Circulation
City of Port Orchard
South Kitsap Urban Growth Area
Verification Council: .
22,620 (7 day circulation)
<100 based on SK UGA Map
The motion carried.
(Contract No. 061-16)
Minutes of June 14, 2016
Page 9 of 12
H. Approval of a Lease Agreement with Bruce Titus Ford, Inc. for Certain Real Property
Commonly Known as Maple Street Waterway
City Attorney Cates stated that the City entered into an agreement with Quisenberry Property
Management on October 1, 2008, to lease certain real property commonly known as Maple Street
Waterway.
On May 24, 2011, the Council approved an assignment of lease agreement between Quisenberry
Property Management Company, Inc. and Bruce Titus Ford, Inc. for the same property.
On September BO, 2013, the lease expired and continued to operate on a month-to-month basis.
City Attorney Cates informed that the City was planning the Pedestrian Pathway project and
needed to work with the State, Mr. Titus, legal counsel, and other parties to determine the area
the City needed for the pathway and to determine what areas the City would lease to Mr. Titus. In
addition, since it had been over 10 year from the last appraisal, staff was required to seek an
appraisal on the value of the land being leased.
The appraisal has been done and the lease has been finalized by both parties. The highlights of the
agreement include:
• Five-year lease agreement with 3 options to renew for additional 5 years each;
• Annual lease amount of $14,000, to be paid monthly; and
• Should Mr. Titus extend the lease, the annual rent for each five-year option period shall be
increased on the first day of June of the option period based on the increase in the Consumer
Price Index - Urban for the Seattle - Tacoma - Bremerton Area (the Index).
MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, authorizing the
Mayor to execute a lease agreement with Bruce Titus Ford, Inc. for real property commonly known
as Maple Street Waterway for a five-year term and an annual amount of $14,000.
The motion carried.
(Contract No. 060-16)
I. Discussion: Potential Locations of Medical Marijuana Cooperatives per RCW 69.51A
Mayor Putaansuu stated that in 2015, Governor Inslee approved several changes to Chapter 69.51A
RCW (Medical Cannabis) that take effect on July 1, 2016. One change is the deletion of "medical
marijuana collective gardens", which will be replaced by "medical marijuana cooperatives." A
cooperative may serve up to four state-registered medical marijuana patients by producing and
processing a limited amount of marijuana plants for their personal medical uses. It must be
registered with the state Department of Liquor and Cannabis and would require a City business
Minutes of June 14, 2016
Page 10 of 12
license. The new law prohibits cooperatives from locating within one mile of a marijuana retailer,
and within one thousand feet of the perimeter of a school, playground, recreation facility, child care
center, public park, transit center, library, or all-ages game arcade. The cooperative must also be
located at the residence of one of the cooperative members.
Mayor Putaansuu acknowledged that RCW 69.51A.250 allows a local government to adopt zoning
regulations to further limit or prohibit the location of medical marijuana cooperatives. City staff and
the City attorney are working on "housekeeping" amendments to City codes to ensure consistency
with the revised state law, and are seeking input from City Council on whether any limitation on the
location of cooperatives, in addition to those stated above, is desirable. Currently, the Zoning Code
allows recreational marijuana production and processing in the Industrial and Office zone, and allows
recreational marijuana retail sales in the Retail and Office zone. Collective gardens were not
prohibited in the Zoning Code, but POMC 5.12.070(l)(e) (Business Licenses) prohibited them from
obtaining a City business license, and therefore they have not been able to locate in the City. Since
both collective gardens and cooperatives operate on a non-profit basis solely for their members,
there has been no tax impact to the City from this prohibition.
Mayor Putaansuu directed to review the map, in the agenda packet, that shows both the 1-mile
buffers and the 1,000-ft buffers that would be applicable to cooperatives (in grey and pink
respectively). It is clear that per state law there are very few non-residential locations in the City
where medical marijuana cooperatives can be located, even without local restrictions. Additionally,
since the cooperative must be at a member's residence, the potential location for a cooperative is
even further reduced. However, there are a number of residentially-zoned areas, particularly on the
west side of the City, where a cooperative could be located.
Council was reminded the City's Retail Marijuana ordinances mirror State law. Provisions in the
Medical Marijuana State law effective July 1, 2016 were explained.
Council Direction: Direct staff to prepare changes to City codes to address the potential locations
of medical marijuana cooperatives at September's Work Study.
8. COMMITTEE REPORTS
• Councilmember Clauson reported the next Finance Committee meeting is scheduled for
June 28 at 7:30am.
• Councilmember Ashby reported on the June 13 Economic Development and Tourism
Committee. Next meeting is July 11 at 9:00am. Also, reported on last Kitsap Regional Council
Committee.
• Councilmember Lucarelli reported the next Utilities Committee meeting is scheduled for
June 27. The Sewer Advisory Committee is scheduled for July 20. The next Chimes and
Lights meeting is scheduled for June 20.
Minutes of June 14, 2016
Page 11 of 12
• Councilmember Diener reported the next Land Use Committee meeting is June 15, 2016 at
7:30am.
9. MAYOR'S REPORT
Mayor Putaansuu reported on the following:
• Cascadia Rising Exercise
• KRCC and PSRC Transportation funding outcomes
• Health District Board
• KRCC Letter of Commitment
• The Cruz Public Event affecting United Methodjst Church's Sunday Service
• Sign code; enforcing City's code of no signs in the Right-of-Way
• Myhre's temporary siding, and the replacement status
REPORT OF DEPARTMENT DIRECTORS
• Public Works Director Dorsey reported Bethel Project as under budget and ahead of
schedule.
• Community Director Bond announced that the wayfinding signs have been put out to bid.
• City Attorney Cates acknowledged the new highway signs noting "City Center".
11. CITIZENS COMMENTS
Jessie Turner discussed the concerns of the road closure issues, specifically referencing the request
of Port Orchard Boulevard's closure during The Grand Parade on Saturday, June 25th.
Al Mahaney acknowledged Public Works Director Dorsey for his assistance and information
regarding The Grand Parade.
Dick Brown expressed his concerns on the change of the citizens comment periods during Council
Meetings.
Mike Eliason restated his Public Hearing points for the Comprehensive Plan and the importance of
deciding its language.
Elissa Whittleton asked for the citizen comment periods to be changed. Also, informed Council of
grass overgrowth to a property in city limits.
Bobbie Stewart thanked the City for improvements made on Bethel.
Gerry Harmon voiced concerns of involvement based on requirements prescribed by KRCC and
PSRC for transportation funding.
Minutes of June 14, 2016
Page 12 of 12
12. EXECUTIVE SESSION
MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to extend meeting
past 10:00pm for Executive Session to be held; not lasting longer than 10 minutes.
The motion carried.
Held regarding RCW 042.30.110, an ongoing litigation, no action taken.
13. ADJOURNMENT
The meeting adjourned at 10:17 p.m. No other action was taken.
Brandy Rinearson, CMC, City Clerk Robert Robert Putaansuu, Mayor
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