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.
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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
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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.
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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
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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.
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