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05/19/2015 - Work Study - MinutesCity of Port Orchard Council Meeting Minutes Work Study Session Meeting of May 19, 2015 CALL TO ORDER AND ROLL CALL Mayor Tim Matthes called the meeting to order at 7:00 p.m. Roll call was taken by the City Clerk as follows: Councilmember Cartwright Councilmember Chang Councilmember Childs Councilmember Clauson Councilmember Lucarelli Councilmember Putaansuu Mayor Pro-Tern Ashby Mayor Matthes Present Present Present Present Present Present Present Present Staff present: Public Works Director Dorsey, City Treasurer Martin, Development Director Bond, Assistant City Engineer Archer-Parsons, City Clerk Rinearson, Office Assistant Floyd, City Attorney Morris, and City Attorney Cates were also present. Pledge of Allegiance Mayor Matthes led the audience and Council in the Pledge of Allegiance. 1. Approval of Carnival Staff Report: City Clerk Rinearson presented the staff report, noting Port Orchard Municipal Code (POMC) 5.32.080 requires Council approval of an organization requesting to operate a Carnival within the City. On May 18, 2015, Paradise Amusements submitted an application requesting to hold a carnival in the South Kitsap Mall parking lot beginning Thursday, May 21 and ending Monday, May 25, 2015. They have paid the required fee and have met the City's insurance requirements. Due to receiving the paperwork on short notice, staff is seeking ratification of the issuance of a carnival licensee to Paradise Amusements. MOTION: By Councilmember Ashby seconded by Councilmember Putaansuu, to ratify the issuance of a carnival license for Paradise Amusements to be held in the South Kitsap Mall parking lot beginning Thursday, May 21, 2015, and ending Monday, May 25, 2015. Minutes of May 19, 2015 Page 2 of 5 City Clerk Rinearson said she would contact Kitsap Transit and see if they had any concerns with this carnival. The motion carried. 2. City Attorney Communications with Council City Attorney Morris noted Councilmembers can call or email her anytime. In the past, if Councilmembers had questions or requested opinions, she would notify the Mayor and would need a majority of the Councilmembers who desire the same, so she is not just writing opinions for just one Councilmember. In response to Councilmember Ashby, City Attorney Cates discussed the process and what they are working on for this year's labor contracts. She also indicated Council can call her with any questions. In response to Councilmember Chang, Ms. Morris noted in the past during council meetings, she waits until someone asks her a question; she usually does not interject into the conversation. She will put information into the agenda so the Council will be up to speed, and will also reference the City's code and State law, so when they do come to the Council meetings, they will have the information. Ms. Morris noted with her background in regards to the insurance pool, she has a preventative approach. She would like to make sure everything is done in the beginning so there are no problems at the back end. She is more conservative in her opinions, because she has seen what can happen to cities. In addition, she said if Council would like her to interject herself more into the process, she can do so. Council Direction: No direction was given to staff. 3. South Kitsap High School Turf Mayor Matthes read a letter into the record about South Kitsap School District receiving donations of over $650,000 from two local community leaders to assist in funding a replacement athletic field and resurfacing of the track. Kitsap Bank has committed $504,000 and $150,000 was donated from Debbie and Wayne Macomber. Council Direction: No direction was given to staff. 4. State 2016 Water Quality Funding Storm Drainage Assistant City Engineer Archer-Parsons noted the City submitted an application to the Department of Ecology last fall to try and get grant funding to rebuild the decant facility that the city currently has in Minutes of May 19, 2015 Page 3 of 5 operation. The city received notification that we ranked fairly high in the grant standings and is looking promising if we can get through legislation. This would be $761,250 in grant funding and they are proposing a $253,750 city match in loan funding, which is a 75% grant, with a 25% match. It was put into the Capital Improvement Plan (CIP) as a $500,000 project, but as we started getting into it to try and make everything compliant with current regulations, the project grew. This is why they are trying to get grant funding to help subsidize that funding gap. City Treasurer Martin said the State has offered the City a Water Pollution Control Revolving Fund loan to pay the 25%, $253,750 City match. This is offered at 1.2%. We calculated that using a six year payback to cash flow, which is $52,000 a year. Staff recommends Council consider the loan since the grant is reimbursable. He further discussed cash versus loan analysis, considering Storm Drainage Utility cash flow, available reserves, and cost of borrowing. He provided Council with options and the pros and cons of each of those options. In response to Councilmember Putaansuu, Ms. Archer-Parsons noted part of the agreement built into this is to develop an lnterlocal Agreement. The current facility is used by three separate entities, and there is a possibility that a fourth entity will come in. The agreement will set up a fee structure that helps support the facility and also for rebuilding it when it hits the end of its life. Each of the entities have written letters of support for the grant. In response to Councilmember Ashby, Ms. Archer-Parsons said the new facility has a tracking mechanism on the gate. This will track who goes in and how many times. This is how the fee structure will be set up, based on the trips inside that gate. The water will be built in the same way. In response to Councilmember Clauson, Ms. Archer-Parsons said West Sound Utility District, Kitsap County, and the City of Port Orchard use the current decant facility. Washington State Department of Transportation would also like to use the facility. Council and staff briefly discussed fee structures and issues with the current facility. Council Direction: Council directed staff to move forward with borrowing the funds. Presentation: Revised Water-Sewer GAP Analysis Presentation Public Works Director Dorsey reported in 2014, Council approved the contract with Kathy Isaksen Associates to prepare the 2014 Water/Sewer Financial Gap Analysis. They had an initial presentation at the end of the year where Council asked her to continue in 2015. We know this is a function of our Comprehensive Plan Update for water and sewer, and to achieve a financially constrained comprehensive plan for Community Development Director Bond in 2016. Staff was directed to revise the Water/Sewer Financial Gap Analysis prior to proceeding with utility rate and Municipal Code revisions in 2015. Minutes of May 19, 2015 Page 4 of 5 Katy Isaksen with Katy Isaksen Associates, showed a Powerpoint presentation which outlined the following: • Where Are We • Six Year Water and Sewer Gap • Six Year Water and Sewer Program • Water Capital Program • Water Rate Structure • Discounts • Sewer CIP Program • Sewer Rate Structure • Comparable 2015 Sewer and Water Bills • Next Steps • Six Year Water and Sewer Improvements • Water Rates-Preferred Scenario • Six Year Water and Sewer Funding Gap • Six Year Sewer Rate Outlook Council and staff briefly discussed billing water by usage and the costs associated with moving to a monthly billing instead of a bi-monthly billing system. Council Direction: Council directed staff to meet with utility billing to start looking at the Code, bring the discussion back to the July Work Study, and to notice public hearings in the fall. 5. Transportation Public Works Director Dorsey reported in 2014, Transportation Solutions Inc. (TSI) and David Evans & Associates, Inc. (DEA} presented the Transportation Impact Fee (TIF} Rate Analysis, based on the current 2014 TIP6. Council directed staff to revise the proposed TIF rate of $3,822/ITE Trip as a function of the upcoming 2015 Transportation Plan Update. On March 24, 2015, and based upon a proposed 3- tier TIP6, TSI presented a new TIF rate of $2,607 /ITE trip. The updated TIP6 rate has now been modified to include two (2} additional roundabouts at SR 160. The Alternative 1 TIP6 includes a new Tier 2 project, being the Sedgwick West improvement, between SR 16 and Sidney. The Transportation Improvement Plan (TIP} is broken into three Tiers; Tier 1 is our reasonably constrained priority projects; Tier 2 are unconstrained projects but impact fees are still included; and Tier 3 are the down the road, wish list projects that are not from the impact fee calculations. Council and staff discussed the different timelines and projects listed on the three tiers, impact fees, and which list the Council would like to move forward. Development Director Bond said he and Public Works Director Dorsey are working on the concurrency and impact fees ordinance. One of the difficulties is, under the proposed concurrency ordinance, which has to be adopted with the transportation impact fee ordinance, we cannot approve new Minutes of May 19, 2015 Page 5 of 5 developments if the level of service drops below our current level of standard. For the Sedgwick corridor/16 and Sidney, that roadway is very close to failing from a traffic standpoint. We are coming to a point where we can no longer approve projects there because that is not part of our traffic impact fee calculation . In addition, State law requires a concurrency ordinance, and the City's is way off mark. He provided the Council with a draft concurrency and traffic impact fee ordinances. Council and staff briefly discussed the proposed ordinances. Councilmember Putaansuu would like feedback from the community on the proposed ordinances. Council Direction: Council directed staff to move ahead with Tier 1 as presented, and submit to Puget Sound Regional Council (PSRC}; bring forward a resolution; concurrently adopt the three tired plan with the alternate; and bring back the proposed ordinances at the next Work Study. Motion: By Council member Clauson, seconded by Councilmember Cartwright to adjourn the meeting. The motion passed. 6. Capital Improvement Budget This item was not discussed. 7. Biennial Budgeting This item was not discussed. ADJOURNMENT Th ~ned at 9:26 p.m. ,, . . ffllh--=" I