11/24/2015 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of November 24, 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 Chang Present
Councilmember Childs Present
Councilmember Clauson Present
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, 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.
SWEARING IN CEREMONY: Judge Jahns performed the Oath of Office for Councilmember-Elect
Cucciardi.
2. CITIZENS COMMENT
Ms. Glenna Bailey spoke regarding the low usage discount and wondered if the minimum usage
will remain the same. She spoke regarding the pledge of allegiance and oath of office language.
Mr. Nick Whittleton spoke regarding the parking permit ordinance, and thinks four vehicles is
excessive. He also spoke regarding Business Item 7A and when Katy Isaksen said the size of the
UGA would impact rates.
Ms. Gerry Harmon spoke regarding sewer rates needing to be based on consumption instead of
ERUs.
3. APPROVAL OF AGENDA
Minutes of November 24, 2015
Page 2 of 9
MOTION: By Councilmember Putaansuu, seconded by Councilmember Clauson, to approve the
agenda.
The motion carried.
4. APPROVAL OF CONSENT AGENDA
A. Approval of Check Nos. 65372-65434 totaling $253,827.43
B. Approval of Public Event Application: Yukon Do It Marathon
C. Ratification of the Mayor's Signature on the Bay Street Pedestrian Pathway Local Agency
Federal Aid Project Prospectus and the Mayor Pro-Tern's Signature on the Bay Street
Pedestrian Pathway Local Agency Agreement Supplement No. 2 for Right-of-Way Funding
Obligation (AMENDMENT NO. 2 to CONTRACT NO. 006-06)
D. Approval of an Grant Agreement with Department of Ecology for FY2015-17 Stormwater
Capacity Activities (CONTRACT NO. 083-15)
MOTION: By Councilmember Clauson, seconded by Councilmember Putaansuu, approving the
Consent Agenda as published.
The motion carried.
5. PRESENTATION
A. Kitsap Economic Development Alliance Update -Rescheduled for December 8, 2015.
6. PUBLIC HEARING
No public hearings were held.
7. BUSINESS ITEMS
A. Continuation of 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 November 10,
2015, the second reading on the adoption of an ordinance amending POMC Chapter 13.04 was
held. Council moved to continue the agenda item to November 24, 2015, when a full council
would be present to vote on the ordinance.
The motion on the floor from November 11, 2015, is:
Minutes of November 24, 2015
Page 3 of 9
Councilmember Putaansuu MOVED and Councilmember Ashby seconded 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.
MOTION TO AMEND: By Councilmember Chang to direct utility billing staff to include
communication to customers including the following information: 1} Brief summary of the study,
rate-setting process, where the revenues will go, including the projects to be funded; 2) Website
for additional info including summary and the water-sewer gap study; 3} Phone number to request
a hard copy be mailed; and 4) Information about Kitsap Community Resources or other resources
for utility bill assistance. Additionally, direct staff to send a postcard after passage of this
ordinance with contacts for additional information. And direct staff to include a letter or flyer with
the above information to go in the next utility bill; and the first bill for each rate increase in
subsequent years.
The motion to amend died for lack of a second.
Discussion was held on various ways to provide information to the public on how to reduce their
consumption. Staff will review options and present them to the Council later for direction.
The motion passed 6 to 1. Councilmember Chang voted no.
(ORDINANCE NO. 020-15)
B. Adoption of an Ordinance Amending and Repealing Sections of POMC 12.08 Concerning
Vacations of Streets, Alleys, Public Places, or Portions Thereof
Staff Report: Development Director Bond presented the staff report, noting the City has recently
received a petition to vacate a portion of a street subject to the non-user statute. The City's
current street vacation does not address non-user statute vacations. In addition, the current street
vacation chapter 12.08 includes a street vacation process that is incomplete. The City Attorney has
drafted an ordinance to revise chapter 12.08 to ensure that the City's street vacation process is
consistent with State law.
Council Consideration: -MOTION: By Mayor Pro-Tern Ashby, seconded by Councilmember
Lucarelli, to adopt the proposed ordinance amending and repealing portions of POMC 12.08
concerning street vacations.
In response to Councilmember Lucarelli, Development Director Bond said the pending vacation
request came from a property owner on Dwight Street.
The motion passed 6 to 1. Councilmember Lucarelli voted no.
(ORDINANCE NO. 028-15)
Minutes of November 24, 2015
Page 4 of 9
C. Adoption of an Ordinance Amending POMC 10.14 Residential Parking Permit System
Staff Report: City Clerk Rinearson presented the staff report, noting based on POMC 10.14,
residential parking permits are set to expire on December 31, 2015. After review of the code, staff
determined additional changes were needed.
Council Consideration: -MOTION: By Councilmember Putaansuu, seconded by Councilmember
Clauson, to adopt an Ordinance amending POMC Chapter 10.04 Residential Parking Permit System.
MOTION TO AMEND: By Councilmember Putaansuu seconded by Councilmember Chang, to
change the number of vehicles from four to three.
Councilmember Childs spoke against the fees portion and the regulation changes.
In response to Councilmember Childs, City Clerk Rinearson spoke regarding people not liking the
quality of the stickers and not wanting to stick them on their car. They are testing window clings.
In response to Councilmember Childs, City Clerk Rinearson clarified that residents could park
within one block of their residence, and said the language in the proposed ordinance could be
amended.
Chang would like a window cling or sticker to choose from.
The motion to amend passed 4 to 3. Councilmember Clauson, Councilmember Childs, and Mayor
Pro-Tern Ashby voted no.
MOTION TO AMEND: By Councilmember Ashby seconded by Councilmember Cucciardi, to change
section 10.14.030{8}(6) to read "Parking permits allow the owner of a vehicle to park within a one
block radius of the owner's residence on streets with posted restrictions. Permits do not reserve or
guarantee a certain parking space on the street" and section 10.14.030(8)(8) to eliminate the first
sentence "Permits are to be fixed to the lower exterior back window on the driver's side of the
vehicle."
The motion to amend carried.
Discussion held regarding an appeal process.
The amended motion passed 6 to 1. Council member Childs voted no.
(ORDINANCE NO. 029-15)
Minutes of November 24, 2015
Page 5 of 9
MOTION: By Councilmember Clauson seconded by Councilmember Putaansuu, to have this
ordinance be taken to the Public Properties Committee for review and recommendation back to
the Council.
In response to Mayor Pro-Tern Ashby, Councilmember Clauson would like to receive the
recommendation back as soon as possible since the new ordinance goes into effect January 1,
2016.
Motion carried.
D. First Reading of an Ordinance Amending the 2015 Budget
Staff Report: City Treasurer Martin presented the staff report, noting the Budget Amendment
Ordinance reflects the following:
1. $137,000 for prisoner boarding expenses from Current Expense Fund No. 001.
2. $34,000 for prisoner medical expenses from Current Expense Fund No. 001.
3. A transfer of $80,000 from Water Sewer Utility Fund No. 401 to W~ter Sewer Cumulative
Reserve No. 403 for Capital Facilities collected as a portion of the Water Sewer rate.
4. $164,000 from Water Sewer Utility Fund No. 401 for purchased water due to City Well No.
6 and Well No. 9 being offline at times.
5. $120,000 additional Retails Sales and Use Tax to Current Expense Fund No. 001.
Council Consideration: -MOTION: By Councilmember Lucarelli, seconded by Councilmember
Putaansuu, to accept the first reading of the ordinance amending the 2015 Budget for the City of
Port Orchard and to direct staff to place the ordinance on the December 8, 2015, agenda for
second reading and final adoption.
In response to Councilmember Putaansuu, Public Works Director Dorsey said this is in addition to
the 2015-budgeted amount based on the new rate that came mid-year.
Mayor Matthes opened the floor to public comment, and there being no testimony, closed the
Public Hearing at 7:51 p.m.
The motion carried.
E. Adoption of a Resolution Setting the Amount of Property Taxes to be Levied for the Vear 2016
Pursuant to RCW 84.55.120
Staff Report: City Treasurer Martin presented the staff report, noting on October 13, 2015, a
public hearing on revenue sources for the current expense (general fund) budget was held. The
hearing included a presentation and discussion on property tax considered for collection in 2016.
Minutes of November 24, 2015
Page 6 of 9
Total City of Port Orchard 2016 property tax amount is estimated to be $2,458,021 based upon an
estimated maximum $1.75 per thousand of current total assessed value of $1,404,584,517.
Council Consideration: -MOTION: By Councilmember Ashby, seconded by Councilmember
Clauson, to adopt a resolution, setting the 2016 property tax levy and the amount of property
taxes to be raised for the budget year of 2016.
Councilmember Lucarelli stated said the citizens are receiving so many rate increases, so she will
vote no.
In response to Councilmember Chang, City Treasurer Martin said the one percent property tax
cannot go up greater than one percent or the implicit price deflator is ever less; unless you pass a
substantial need greater than one percent of the highest allowable levy. The $81,016 is not the
levy, it is the tax rate. It is the difference based on ~hat $1.75 per $1,000. Our highest allowable
levy is $2,623,160. Over time as the assessed value of the City's properties recovers from the
downturn, you will be able to take that tax rate up to the highest allowable levy, which is about
$200,000 from where we are today. When that amount is reached, you will be capped at the one
percent levy cap.
In response to Councilmember Chang, City Treasurer Martin believes last year's rate was $1.73.
In response to Councilmember Childs, City Treasurer Martin said the City has not passed a capacity
and banked it into the future.
Discussion was held regarding options available to the Council on what amount they could collect.
The 2016 budget is structured to take the levy amount.
The motion passed 5 to 2. Councilmember Lucarelli and Childs voted no.
(RESOLUTION NO. 021-15)
F. Adoption of a Resolution in Support of Dedicating a Portion of Hwy 16 to Trooper Tony
Radulescu
Staff Report: City Clerk Rinearson presented the staff report, noting Penelope Sapp with Kitsap
County, asked the City Council to support dedicating a portion of Hwy 16 in honor of Trooper Tony
Radulescu.
Ms. Sapp read the resolution into the record and Sheriff Simpson discussed the importance of this
resolution.
Minutes of November 24, 2015
Page 7 of 9
Council Consideration: -MOTION: By Councilmember Clauson, seconded by Councilmember
Lucarelli, to approve the resolution, dedicating of portion of Highway 16 to Trooper Tony
Radulescu.
The motion carried.
(RESOLUTION NO. 022-15)
G. Approval of Contracts with the Washington State Department of Commerce
for Grants to Complete DeKalb Pier Phase 2
Staff Report: Public Works Director Dorsey presented the staff report, noting that during the
Second Special Session of 2013, the Washington State Legislature awarded $255,000 to the City of
Port Orchard from the 'Projects for Jobs and Economic Development' program for the Dekalb Pier
-Phase 2 Project. The Washington State Legislature then awarded an additional $500,000 to the
City of Port Orchard from the 2015-2017 Biennium 'Direct-Appropriations Grant' as needed to
fund the successful completion of the Project. The Department of Commerce, being the Contract
Administrator, will retain three percent of the grant awards to cover their administrative costs.
Therefore, the City will receive a net grant award of $247,350 from Contract No. 14-93222-001
and $485,000 from Contract No. CD16-96503-001, for a grant award total of $732,350. The City's
2016 Budget also includes an additional $82,650.00 from REET to cover the anticipated Total
Project Cost of $815,000. As the environmental approval and Ad Ready Document updates were
recently completed by the Project Consultant (PND), Contract Award for the Project is anticipated
in February of 2016.
Council Consideration: -MOTION: By Councilmember Childs, seconded by Councilmember
Clauson, to authorize the Mayor to execute Contract(s) No. 084-15 and 085-15, thereby executing
the Department of Commerce Grant Agreement No. 14-93222-001 in the amount of $247,350.00
and Agreement No. CD16-996503-003 in the amount of $485,000.00, for the completion of the
Dekalb Pier -Phase 2 Project.
In response to Mayor Pro Tern Ashby, Public Works Dorsey gave a timeline on the project.
The motion carried.
(CONTRACT NOS. 084-15 and 085-15)
MOTION: By Councilmember Putaansuu and seconded by Councilmember Clauson to delay
Business Item 7H until Briahna gets here.
Motion carried.
H. Approval of November 10, 2015, Council Meeting Minutes
Minutes of November 24, 2015
Page 8 of 9
Councilmembers Clauson and Cucciardi said they would abstain from voting, because they were
not in attendance at the November 10, 2015, meeting.
MOTION: By Councilmember Putaansuu, seconded by Mayor Pro-Tem Ashby seconded
approving the minutes of November 10, 2015.
The motion carried. Councilmembers Clauson and Cucciardi abstained.
8. COMMITTEE REPORTS
Councilmember Putaansuu reported the Sewer Advisory Committee will meet January 20, 2016.
Councilmember Ashby reported the next Economic Development Committee meeting is December
14, immediately following the Public Properties Committee. She announced that KRCC will meet
December 1.
Councilmember Chang reported Public Properties Committee is December 14, at 8:30 a.m.
Councilmember Lucarelli reported there are posters, flyers, and brochures for the Festival of
Chimes & Lights. The event is December 5, 11:00 a.m. to 7:30 a.m.
Councilmember Childs reported KEDA will meet on December 10, and there will be a holiday party
at Kitsap Bank following the meeting.
Business Item 7H -Approval of Finalizing the 2016 Legislative Agenda
Staff Report: City Lobbyist Murray presented the staff report, and asked the Council to approve
the City's draft 2016 legislative agenda, as the 2016 legislative session will begin January 11, 2016.
Council Consideration: -MOTION: By Councilmember Clauson, seconded by Councilmember
Putaansuu, to approve the City's 2016 legislative agenda.
The motion carried.
9. MAYOR'S REPORT
Mayor Matthes reported Puget Sound Energy (PSE) has opened a local storm base. 50,000
customers are impacted, mostly in Kitsap County. A wind advisory is in effect until 6:00 a.m.
tomorrow. Two shelters are open tonight due to the cold temperatures. He complimented PSE for
their quick recovery from the last storm.
10. REPORT OF DEPARTMENT DIRECTORS
Minutes of November 24, 2015
Page 9 of 9
Public Works Director Dorsey reported that Sewer Advisory Committee meeting minutes need to
be approved and signed by committee members at the next meeting scheduled for January 20. He
would like to get signatures.
City Treasurer Martin reported the exit conference with Washington State Auditor's office is
scheduled for tomorrow at 8:30 a.m. and a notice has been sent out regarding a Council quorum
attending the meeting.
Development Director Bond presented a draft letter from the Council to the County for signature
regarding the DEIS alternatives.
City Clerk Rinearson reported she is in the process of filling out a survey regarding the public
records act survey from State Auditor's Office. Discussion was held regarding the good neighbor
awards. The Council will tour the City on December 16, at 6:00 p.m. Staff will provide notice to the
public.
11. CITIZENS COMMENTS
Ms. Glenna Bailey spoke against printing a flyer on conserving water to be inserted in the bill. She
finds it insulting.
Ms. Gerry Harmon spoke regarding parking permits and said just because you have a parking
permit, does not mean you have a car parked on the street.
12. EXECUTIVE SESSION
No executive session was held.
13. ADJOURNMENT
The meeting adjourned at 8:43 p.m. No other action was taken .