11/10/2015 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of November 10, 2015
1. 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 Excused
Councilmember Chang Present
Councilmember Childs Present
Councilmember Clauson Excused
Councilmember Lucarelli Present
Councilmember Putaansuu Present
Mayor Pro-Tern Ashby Present
Mayor Matthes Present
Staff present: City Clerk Rinearson, Public Works Director Dorsey, City Treasurer Martin,
Development Director Bond, Assistant City Engineer Archer-Parsons, Police Chief Marti, Deputy
City Clerk Fernandez, and City Attorney Morris were also present.
A. Pledge of Allegiance
Mayor Matthes led the audience and Council in the Pledge of Allegiance.
2. CITIZENS COMMENT
A McCormick Woods resident spoke regarding a positive experience he had with Public Works. He
is happy to live in Port Orchard.
Ms. Glenna Bailey spoke regarding the trends in water rates and against the rate increase that will
affect fixed-income citizens.
Mr. Mark Rill, small business owner, spoke regarding the impact of the proposed water rate
increase for his business.
A McCormick Woods resident asked the Council to not increase the rates to be higher than
Anchorage, Alaska.
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Ms. Beulah Jones spoke regarding her utility bills being too high. She did not understand why she
is paying for storm, and wanted to know why the sewer was $98 every two months.
3. APPROVAL OF AGENDA
MOTION: By Councilmember Putaansuu, seconded by Councilmember Childs, to approve the
agenda as presented.
The motion carried.
4. APPROVAL OF CONSENT AGENDA
A. Approval of Check Nos. 65269 through 65361 totaling $387,482.13; October Payroll
Warrant Nos. 146649 through 146691 totaling $605,742.44; Electronic Payments dates
10/1/2015 through 10/31/2015 totaling $138,386.74; and Treasurer's check deposit
totaling $2,467,484.26.
B. Approval of the October 20, 2015, Council Work Study Session Minutes
C. Approval of October 27, 2015, Council Meeting Minutes
D. Approval of a Contract with Gordon Sound/GS Events! for the 2015 Festival of Chimes and
Lights Sound System Services (CONTRACT NO. 082-15)
E. Approval for the Public Works Director to Issue Naftchi Letter Granting Permission to
Building within the Sidney Avenue Right-of-Way
F. Excusal of Councilmembers Cartwright and Clauson from Tonight's Meeting
MOTION: By Councilmember Childs to approve the consent agenda as presented.
AMENDED MOTION: By Councilmember Putaansuu, seconded by Mayor Pro-Tern Ashby,
excusing Councilmembers Cartwright and Clauson and add them being excused to the consent
agenda.
The motion carried.
5. PRESENTATION
A. Proclamation: World Pancreatic Cancer Day -Mayor Matthes read the proclamation into the
record.
B. Team RWB Veterans for Veterans -Postponed.
C. Kitsap Economic Development Alliance Update -Rescheduled for November 24.
Minutes of November 10, 2015
Page 3 of 10
D. 2016 SKWRF Budget -Mr. Michael Wilson, WSUD, gave a presentation on the South Kitsap
Reclamation Facility amended 2015-16 Biennial Budget. Presentation highlights included SKWRF
2015-16 budget overview, 2016 objectives, personnel/staffing, sewer treatment cost comparison
chart, operating fund, capital improvement fund, equipment repair & replacement fund,
6. PUBLIC HEARING
A. Public Hearing and Adoption of an Ordinance Amending Appendix G of the Comprehensive
Plan Concerning the Transportation Improvement Program
Staff Report: Development Director Bond presented the staff report, noting the ordinance
provided will have the effect of approving the following amendment: The Transportation Plan
Amendment: A request to adopt the 2016-2035 6-and 20-Year TIP by reference adding the plan
to Appendix G of the Comprehensive Plan. The Planning Commission and staff's recommendation
is to approve the ordinance.
Mayor Matthes opened the Public Hearing, and there being no testimony, closed the Public
Hearing at 7:46 p.m.
In response to Councilmember Chang, Development Director Bond said the removal of all
overwater structures on the Bay Street Pedestrian Path is in the plan, whether the City removes all
five structures or not. He also noted that the Council could amend the motion to strike the
language.
Council Consideration: -MOTION: By Mayor Pro-Tern Ashby, seconded by Councilmember Childs,
to adopt an ordinance amending appendix G of the City's Comprehensive Plan, as submitted.
AMENDED MOTION: By Councilmember Chang to delete the sentence that was discussed from
Capital Project 1.8, the sentence reading: "Includes the demolition/removal of (5) overwater
structures."
The motion to amend died from lack of a second.
The main motion passed 4 to 1. Council member Chang voted no.
(ORDINANCE NO. 021-15)
B. Public Hearing and Adoption of an Ordinances Repealing POMC 16.60 Concurrency and
Adopting a New Chapter 16.71 Concurrency
Staff Report: Development Director Bond presented the staff report, noting the proposed
ordinance has been developed to comply with the GMA, and, consistent with the existing
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concurrency ordinance, also establishes concurrency requirements for water and wastewater
systems.
Mayor Matthes opened the Public Hearing, and there being no testimony, closed the Public
Hearing at 7:52 p.m.
Council Consideration: -MOTION: By Councilmember Chang, seconded by Councilmember
Putaansuu, to approve the concurrency ordinance as presented.
The motion carried.
(ORDINANCE NO. 022-15)
C. Public Hearing and Adoption of an Ordinance Repealing POMC 16.70 Impact Fees and
Adopting a New Chapter 16.70 Impact Fees to Include the Creation of a Traffic Impact Fee
Staff Report: Development Director Bond presented the staff report, noting the proposed
ordinance would create a traffic impact fee within the city of Port Orchard in addition to
continuing the collection of park and school impact fees at the previously established rates.
However, the proposed ordinance does more than establish a traffic impact fee. The proposed
ordinance corrects a number of deficiencies that were previously discussed with the City Council. It
is a total replacement of the existing Impact Fee Ordinance to reduce the risk of litigation and
comply with state law concerning the implementation of impact fees. The proposed ordinance
also addresses new requirements imposed by SB 5923.
The existing and proposed impact fees rates within Port Orchard are as follows:
• School Impact Fee: $1,370.83 per Single Family Residence (SFR), $768.41 per Multi-Family
Residence (MFR)
• Park Impact Fee: $840.46 Per SFR, $605.21 MFR
• Traffic Impact Fee: $2,552.24 per Peak PM Trip
Mayor Matthes opened the Public Hearing at 7:56 p.m.
Mr. Matt Murphy, Port Orchard Chamber of Commerce, discussed the revenues that would be
increased with a YMCA, a new high school, and a new bank. He thinks the burden on the local
businesses is a little too high.
There being no further testimony, Mayor Matthes closed the Public Hearing at 7:57 p.m.
Council Consideration: -MOTION: By Councilmember Putaansuu, seconded by Councilmember
Chang, to approve the impact fee ordinance as presented.
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Page 5 of 10
Councilmember Putaansuu stated that the project list has been trimmed extensively to lower the
fee. He said half of the community already pays an impact fee, and it is fair for the entire City to
have a fee. The City needs to find a way to pay for arterial improvements, while needing to be
careful that the fees are not too high. He thinks the City is on the right track and he is comfortable
with the number.
Mayor Pro-Tern Ashby complimented the consultant that put together the report for the City. He
was able to determine by zoning and anticipated growth exactly what each area's percentage of
impact on various projects would be. She thanked the consulting firm, Public Works Director
Dorsey, and Development Director Bond for the significant amount of work they did to get the fee
to a reasonable number.
Councilmember Childs said he is conflicted. He knows the City faces a problem with the water and
water rates increasing quickly because the City was not proactive. The City will face the same
problem with its streets if this is not passed. He will vote for this, because it is their job to move
the City along and not put their heads in the sand.
Development Director Bond said when the high school is built many trips will be moved from one
school to another and will not be added to the system. A study will be conducted that will show
they do not have the stand-alone impact of one new school; it will be mitigated by reduced trips at
the other school.
Public Works Director said that the City has had preliminary conversations with the School District,
and they know the project will trigger intersection improvements. Without the ordinance, they
would be building the improvements with no potential credit. With the impact fee in place, those
impact fees will go towards the construction of off-site improvements.
Development Director Bond said he hopes to have an interlocal agreement with the School District
in place by the end of the year.
Councilmember Chang thanked the staff for bearing the brunt of criticism.
The motion carried.
(ORDINANCE NO. 023-15)
D. Public Hearing and Adoption of an Ordinance Adopting a New Chapter Creating Definitions for
the City's New Impact Fee and Concurrency Ordinances
Staff Report: Development Director Bond presented the staff report, noting the ordinance must be
adopted if either the concurrency or impact fee ordinances being considered are adopted. The
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definitions ordinance works in tandem with the proposed concurrency ordinance and impact fee
ordinance and is required to fully implement these ordinances.
Mayor Matthes opened the Public Hearing, and there being no testimony, closed the Public
Hearing at 8:05 p.m.
Council Consideration: -MOTION: By Mayor Pro-Tern Ashby, seconded by Councilmember
Putaansuu, to approve the impact fee and concurrency definitions ordinance as presented.
The motion carried.
(ORDINANCE NO. 024-15)
7. BUSINESS ITEMS
A. Second Reading and Adoption of an Ordinance Amending POMC Chapter 13.04 by Increasing
Water and Sewer Rates Over a Six-Year Period
Staff Report: Public Works Director Dorsey presented the staff report, noting on March 25, 2014,
the City of Port Orchard approved Contract No. 033-14 with Katy Isaksen & Associates, Inc. to
prepare the 2014-2015 Water/Sewer Gap Analysis. The purpose of the Analysis, to be prepared in
coordination with the 2015 Comprehensive Plan Updates for Water and Sanitary Sewer, was to
develop a financial plan and six-year rate outlook for funding utility operations, debt repayment
and capital improvements with the output being the impact on rates to complete the identified
water and sanitary sewer programs. Over the course of 19 months, numerous revisions,
redirection, and several public meetings, a PowerPoint presentation of the proposed 2015 Water
and Sanitary Sewer Rates were presented by Ms. Katy Isaksen on October 27, 2015. Along with the
proposed rate increase(s) for Water and Sanitary Sewer, amendments to POMC 13.04 will also be
required.
Council Consideration: -MOTION: By Councilmember Putaansuu, seconded by Councilmember
Ashby, to adopt Ordinance No. 020-15, thereby increasing both water and sanitary sewer rates,
approving amendments to POMC 13.04, and to be made effective January 1, 2016.
Councilmember Putaansuu stated the City has a well that was drilled ten years ago that should be
providing the City's drinking water, but it needs to be hooked to the infrastructure system. As a
result, the City is buying water from the City of Bremerton, because we don't have enough water
for the community. The City should have increased their rates years ago for our capital needs. As a
result, we have no funds in the bank and the City needs to borrow $6M for this well. The City has
received testimony about seniors and customers who don't use as much water. There is a 34
percent discount in place to incent conservation and protect seniors who are low water users. On
the sewer side, there are four pump stations that need to be replaced. The marina pump station is
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Page 7 of 10
below sea level and has a failing seawall. The City cannot wait for a catastrophe to take care of
this. These improvements have been delayed for too long. These are uncomfortable increases, but
they must be done. The Council has taken the capital projects and moved them out farther than
six years, because they could not stomach even higher rates. What we have on here is what we
need to take care of our community into the future.
Councilmember Chang agreed with Rob, but is disappointed about the amount of advertisement
that he feels should have been done regarding the proposed increases. He said the City failed to
communicate why the rates need to be increased.
Mayor Pro-Tern Ashby feels this decision is significant and all seven Councilmembers should be
present when the vote is taken. She asked what the proper procedure would be to delay this
agenda item to the next meeting.
Discussion was held on whether more communication could be done and how much time would
be needed. Councilmember Putaansuu said this decision is part of the 2016 budget and needs to
be made soon.
MOTION: By Mayor Pro-Tern Ashby, seconded by Councilmember Putaansuu, to continue Business
Item 7A until the November 24 Council meeting.
The motion carried.
B. Adoption of a Resolution Authorizing the City to Enter into a Grant and Loan Agreement with
the Department of Ecology for the Regional Decant Facility Retrofit Project
Staff Report: Assistant City Engineer Archer-Parsons presented the staff report, noting at the
October 28, 2014, Council Meeting, Council authorized Staff to submit an application to Ecology
for construction funding for this project. The City was notified in spring this year we had
successfully received a 75% grant for $761,250.00, and 25% loan match for $253,750.00, for a total
construction price of $1,015,000.00. The loan rate is 2.4%. This is included in the 2016 budget.
Council Consideration: -MOTION: By Councilmember Lucarelli, seconded by Councilmember
Putaansuu, to authorize the Mayor and the Assistant City Engineer to execute Water Quality
Combined Financial Assistance Agreement Number WQC-2016-PoOrPW-OOOOS, and the Mayor to
execute the Federal Funding Accountability and Transparency Act (FFATA) Data Collection Form,
and adopt a Resolution granting the authority to enter into the Loan Agreement.
The motion carried.
(CONTRACT NO. 083-15 and RESOLUTION NO. 019-15)
Minutes of November 10, 2015
Page 8 of 10
C. Adoption of an Ordinance Adopting Findings of Fact and Conclusions to Support the Continued
Maintenance of City's Interim Subdivision Ordinance No. 015-15
Staff Report: Development Director Bond presented the staff report, noting staff recommends
extending the interim ordinance through the first meeting in January [January 12, 2016] to ensure
that meetings with stakeholders and consideration before the Planning Commission can be
accommodated.
Council Consideration: -MOTION: By Councilmember Putaansuu, seconded by Councilmember
Lucarelli, to approve the ordinance adopting findings and conclusions to support the continued
maintenance of the interim subdivision ordinance 015-15 as presented continue this to the
January 12 meeting.
The motion passed 4 to 1. Council member Childs voted no.
(ORDINANCE NO. 025-15)
D. Adoption of an Ordinance Adopting Findings of Fact and Conclusions to Support the
Continued Maintenance of the City's Interim Permit Processing Ordinance No. 014-15
Staff Report: Development Director Bond presented the staff report, noting Staff recommends
extending the interim ordinance through the first meeting in January [January 12, 2016] to ensure
that meetings with stakeholders and consideration before the Planning Commission can be
accommodated.
Council Consideration: -MOTION: By Councilmember Chang, seconded by Councilmember
Putaansuu, to approve the ordinance adopting findings and conclusions to support the continued
maintenance of the interim permit processing ordinance 014-15 as presented to be continued till
January 12.
The motion passed 4 to 1. Council member Childs voted no.
(ORDINANCE NO. 026-15)
E. Discussion: Kitsap County and City RE: Transportation Benefit District (TBD)
Discussion highlights:
• Discussed what procedure would be preferred to discuss with the County creating a
Transportation Benefit District.
• County participation may not happen quickly, but it is understood that the County is willing
to enter into discussions.
• The conversation needs to include some elected officials and staff.
• There is support to include the County, but it should not delay the City.
Clerk Rinearson read an email into record from the County.
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Page 9 of 10
In response to Councilmember Putaansuu, City Attorney Morris said there is nothing in the statute
that prohibits amending the boundaries, because it is established with an interlocal agreement.
Council Direction: Discussion will continue at the next Council meeting to decide who will be on
the committee to discuss this with the County. DCD staff will provide notice for a public hearing on
the TBD ordinance.
8. COMMITTEE REPORTS
Councilmember Putaansuu reported the Finance Committee will start the budget process Monday
at 8:30am. He also reported the Sewer Advisory Committee met and received the 2016 SKWRF
Budget presentation that was given tonight.
Councilmember Ashby reported the Economic Development/Tourism Committee met yesterday
and discussed the special events ordinance, public event toolkit, foot ferry meeting follow up, UGA
boundaries, sidewalk usage, sign ordinance, permit report, and the comp plan update. She
reported that the Public Properties Committee met yesterday and had a presentation from Jones
& Jones on McCormick Woods Park Phase 2. They discussed the Beta Sigma Phi sign request,
placement of public art, dangerous/derelict buildings draft code, rresidential parking permit
ordinance, regional decant facility retrofit, and creating a summary of activity for new committee
members that would be in place in January. She also gave a report on the KRCC and West Sound
Alliance meetings she attended. She reminded the Council that the KRCC Legislative Reception is
this Thursday.
Councilmember Lucarelli reported the Chimes & Lights flyer is in the utility billing. The festival is
scheduled for December 5, 11am-7:30pm. Kitsap Bank is the presenting sponsor. The next meeting
is November 16 at 3:30pm at City Hall.
Councilmember Childs reported the KEDA 4th Quarter meeting is December 10 in Port Orchard.
9. MAYOR'S REPORT
Mayor Matthes reported he attended WSA meeting today. He also read a letter of commendation
from Ms. Smith regarding the parking lot at Annapolis.
10. REPORT OF DEPARTMENT DIRECTORS
Public Works Director Dorsey reported the Blackjack Bridge ribbon cutting ceremony was a success
and spoke regarding the approaching weather system.
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City Treasurer Martin reported the State Auditor's Office finished their audit and the exit
conference is scheduled for November 25 in the Council Chambers.
Development Director Bond discussed with the Council the proposed dates for the special council
meeting. He will talk with Councilmember Clauson regarding December 1.
11. CITIZENS COMMENTS
Ms. Gerry Harmon spoke regarding water/sewer rates needing to be based on consumption, not
ER Us. She felt the public should be notified at the start of the issue, not 18 months later.
Mr. Matt Murphy spoke regarding his son being hit on Bay Street in the crosswalk with a flag in his
hand. He would like the speed limit lowered.
Ms. Elissa Whittleton agreed with Ms. Harmon and asked if rates would be re-evaluated if the
UGA was shrunk.
Mr. Brian Petro said he does not want PSRC to be the gatekeeper for transportation dollars from
the State. KRCC needs to be the vehicle to distribute the dollars.
12. EXECUTIVE SESSION
No executive session was held.
13. ADJOURNMENT
The meeting adjourned at 9:02 p.m. No other action was taken.
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