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07/14/2009 - Regular - MinutesCity of Port Orchard Council Meeting Minutes Regular Meeting of July 14, 2009 7:00 P.M. CALL TO ORDER AND ROLL CALL PRESENT: Lary Coppola, Mayor Councilmembers: Mayor Pro-Tern Powers, Clauson, Chang, Childs, Colebank, Olin, and Putaansuu ALSO PRESENT: Police Chief Townsend, Pnblic Works Director Dorsey, Development Director Weaver, City Treasurer Tompkins, City Clerk Kirkpatrick, Deputy Clerk Rinearson, and City Attorney Jacoby. PLEDGE OF ALLEGIANCE Dick Davis led the andience and Council in the Pledge of Allegiance. CITIZEN COMMENT Steve Nystrom, 2569 East Williams, expressed an interest in purchasing a lot owned by the City that is adjacent to his property, noting it was a steep hillside. City Treasurer Tompkins stated the property may have been a foreclosure and she will look into the matter and report back to the Council at a fnture meeting. Bill Stewart, Executive Director of Kitsap Economic Development Alliance (KEDA), provided an npdate regarding the second quarter unemployment rates, which are holding at the same level. He thanked the Council for its continued support. In response to Councilmembers' comments, Mr. Stewart explained that KEDA is a willing partner for fnture economic development in the South Kitsap area. Cindy Lucarelli, 926 Kitsap Street, provided an update on Cedar Cove Days event as follows: • Website is receiving over 300,000 thousand hits per day depending on the topic; • Port Orchard Independent will be printing a 16-page insert relating to Cedar Cove; • The Welcome Center will be located at 701 Prospect Street and will house ticket distribution, lost and found, and volunteer support; • Ticket sales are still going strong and they have over 50 artisans participating in an arts and craft and food vendors; • Cedar Cove will also be offering merchandise for sale online and at the Welcome Center. She reminded the community that guests will be arriving on August 26, 2009, and supported the many efforts to help spruce up the downtown area. APPROVAL OF AGENDA The following item was added to Business Items: • Discussion: Population Signs City Attorney Jacoby advised the Council would meet for a report on labor negotiations following the regular meeting. Minutes of July 14, 2009 Pa e 2 ofS Councilmember Clauson moved and Councilmember Childs seconded the motion to approve the agenda as amended. Upon vote, the motion passed unanimously. APPROVALOFCONSENTAGENDA A. Approval of Claim Warrants #51914 through #52003 in the amount of $270,522.55; June's Payroll Warrants #142411 through #142473 in the amount of $450,532.07; and Treasurer's check book in the amount of $1,701,136.35. B. Approval of the June 16, 2009, Work Study Session Minutes C. Approval of the June 23, 2009, Council Meeting Minutes D. Approval of Public Event Application: Murder Myste1y Weekend E. Adoption of Resolution No. 067-09, Authorizing the Mayor to Execute a Grant from the Washington State Department of Ecology for the Update to the Shoreline Management Plan Councilmember Colebank moved and Councilmember Clauson seconded the motion to approve the Consent Agenda. Upon vote, the motion passed unanimously. PRESENTATION There were no presentations. PUBLIC HEARINGS First Reading and Public Hearing regarding the Proposed 2009 Water/Sewer Rate Increase Public Works Director Dorsey presented the staff report, noting on May 15, 2009, the Utility Committee received a copy of the Calculation of 50% Surcharge Loss in McCormick Woods for Water and Sanitary Sewer as prepared by the City Treasurer. On June 12, 2009, the Utility Committee received an update on the 2009 Sanita1y Sewer Comprehensive Plan from BHC Consultants and discussed the associated impacts to the sewer utility's financial viability given the systems future Capital Improvement Program (CIP) needs. The need for both water and sanitary sewer rate increases was further discussed at the June 16, 2009, City Council Work Study Session, with the proposed water and sanitary sewer rate increase(s) as follows: Capital Improvement Program -Sanitary Sewer McCormick Woods Annexation -Water McCormick Woods Annexation -Sanitary Sewer $11.20 bimonthly $ 3.50 bimonthly $ 7.50 bimonthly $22.20 bimonthly The Committee determined that the loss of the 50% surcharge revenue from the McCormick Woods annexation for water and sanitary sewer would need to take priority over the Capital Improvement Program (CIP) sanitary sewer needs. Therefore, the rate increase associated with the McCormick Woods 50% Surcharge reduction, being $11.00 bimonthly combined, will be resolved in 2009 and the Capital Improvement Program (CIP) need will be resolved in 2010. Staff recommends holding the Public Hearing. Mayor Coppola opened the Public Hearing, and there being no testimony, closed the Public Hearing at 7:23 p.m. Minutes of July 14, 2009 Pa e of8 NEW BUSINESS Adoption of Ordinance No. 017-09, Amending Port Orchard Municipal Code 5.96 Temporary Vendors City Clerk Kirkpatrick presented the staff report, noting at its June 23, 2009, meeting, Mike Lipson, the owner of Uptown Mike's Hot Dog Stand, requested the Council provide an interpretation of Port Orchard Municipal Code 5.96.010 and the Council remanded this matter to the Finance Committee for review and/or recommendation. Port Orchard Municipal Code Section 5.96.010, provides clarity for certain words or phrases pertaining to Temporary Vendors. On June 26, 2009, the Finance Committee reviewed Port Orchard Municipal Code 5.96 Temporary Vendor Permits and determined that 5.96.010(5) public property vending could be interpreted either way -one that it is public property or two that it is private property. The Finance Committee recommended that Uptown Mike's only be charged for a business license as he was operating on private property (in front of McClendon's Hardware) and that a letter be sent to that affect. Since that time, Mr. Lipson has begun operating his stand in front of the Kitsap County Administrative Building. Staff recommends adoption of Ordinance No. 017-09, Amending Port Orchard Municipal Code 5.96 Temporary Vendors Sections 5.96.010 Definitions; 5.96.040 Vendor License Requirements, Duration, Fees, and Renewal; and 5.96.050 License Revocation Councilmember Clauson moved and Councilmember Putaansuu seconded the motion to adopt Ordinance No. 017-09, Amending Port Orchard Municipal Code 5.96 Temporary Vendors Sections 5.96.010 Definitions; 5.96.040 Vendor License Requirements, Duration, Fees, and Renewal; and 5.96.050 License Revocation. Councilmember Clauson moved and Councilmember Putaansuu seconded the motion to postpone Ordinance No. 017-09, to the August 18, 2009, Work Study Session. Upon vote, the motion passed unanimously. After a brief discussion, the Council determined the matter needed further consideration and directed staff to provide language defining personal and private property and municipal buildings. Adoption of Ordinance No. 018-09, Creating Policy and Procedure for Low Flow Toilet Rebate Program Public Works Director Dorsey presented the staff report, noting that on May 15, 2009, the Utility Committee discussed the potential benefits to the City's water/sanitary sewer system by virtue of creating a low-flow toilet rebate program. Replacement of a standard toilet (5.0 gal/flush) to a low flow toilet (1.6 gal/flush) is approximated to be $225 per toilet -plus tax. Although not yet determined that a direct financial benefit from the low flow toilet rebate program will be seen, the water use efficiency impact to the City's municipal water system will benefit immensely as reflected in the passage of House Bill 1338 in 2003 (Municipal Water Law) and the creation of the Water Use Efficiency Program in 2007. The rebate program structure is proposed as follows: • Start rebate at $100.00/toilet • Plumber installation -invoice as proof of install • Plumbers to have City Business License • Homeowner installation·-must buy within City limits • Homeowner installation -sales receipt as proof of install • Cash Rebate Minutes of July 14, 2009 Pa e of 8 At the June 16, 2009, City Council Work Study Session, the City Attorney was directed to develop an ordinance to reflect the program, thereby amending POMC Chapter 13 by adding a new Section 13.04.200 -Low Flow Toilet Rebate Program. Staff recommends adoption of Ordinance No. 018- 09, thereby establishing POMC Chapter 13.04.200 -Low Flow Toilet Rebate Program, for the City of Port Orchard. Councilmember Olin moved and Councilmember Colebank seconded the motion to adopt Ordinance No. 018-09, thereby establishing POMC Chapter 13.04.200 -Low Flow Toilet Rebate Program, for the City of Port Orchard. Upon vote, the motion passed unanimously. Adoption of Resolution No. 068-09, Authorizing an Inter-fund Loan Between the Cumulative Reserve for Municipal Facilities Fund and the Current Expense Fund City Treasurer Tompkins presented the staff report, noting that because of the current economic environment the City of Port Orchard has been experiencing a decline in revenues. The two largest revenue sources of the Current Expense Fund are sales tax and property tax. Sales tax distributions are received monthly from the Department of Revenue. Property taxes are due twice yearly and the City receives the bulk of its portion in May and November. Budgeted sales tax revenue has fallen short based upon historic collection patterns and it may be necessary to facilitate a temporary borrowing in an amount not to exceed $500,000, for the City to meet its ongoing Current Expense Fund obligations. The Finance Committee requested staff to bring forward and recommends the Council adopt Resolution No. 068-09, authorizing an inter-fund loan transfer from the Cumulative Reserve for Municipal Facilities Fund to the Current Expense Fund if necessary. Councilmember Clauson moved and Councilmember Childs seconded the motion to adopt Resolution No. 068-09, authorizing the City Treasurer to make an inter-fund loan transfer as necessary from the Cumulative Reserve for Municipal Facilities Fund to the Current Expense Fund in an amount not to exceed $500,000. Upon vote, the motion passed unanimously. Adoption of Resolution No. 069-09, Authorizing the Mayor to Execute Contract with Ward C. Muller & Associates, Inc. for Sanitary Sewer Easements Associated with Granlund Property. Public Works Director Dorsey presented the staff report, noting during a meeting with Ms. Rebecca Granlund on March 18, 2009, regarding her property located at 593 South Street, staff discovered the absence of existing upstream sanitary sewer easement for the City's sanitary sewer main. On April 17, 2009, the Utilities Committee directed staff to send a letter to Ms. Granlund clarifying the City's position with respect to her property and future actions to be taken by the City with respect to obtaining necessary sanitary sewer easements. On May 15, 2009, the Utilities Committee directed staff to obtain a professional survey cost proposal, whereby the City received two (2) bids from local firms selected from the 2009 Professional Services Roster to perform the professional survey services necessaiy to prepare the needed upstream sanitaiy sewer easements. Upon review of the bids received, Ward C. Muller & Associates, Inc. was determined to be the low bidder with a bid amount of $6,080. Staff recommends that the City Council adopt Resolution No. 069-09, thereby authorizing the Mayor to execute a contract with Ward C. Muller & Associates, Inc. for Sanitary Sewer Easements associated with Granlund Property in an amount not to exceed $6,080. Minutes of July 14, 2009 Pa e of 8 Councilmember Childs moved and Councilmember Colebank seconded the motion to adopt Resolution 069-09, thereby authorizing the Mayor to execute a contract with Ward C. Muller & Associates, Inc. for Sanitary Sewer Easements associated with Granlund Property in an amount not to exceed $6,080, with funds from Cumulative Reserves for Water-Sewer Fund 403. Councilmember Clauson moved and Councilmember Powers seconded the motion to amend by correcting the language with funds from the Water Sewer Operating Fund 401. Upon vote, the motion to amend passed unanimously. Upon vote, the main motion as amended passed unanimously. Adoption of Resolution No. 070-09, Amending Resolution No. 059-09, by Providing the Public Works Director and Mayor with General Purchasing Authority. City Clerk Kirkpatrick presented the staff report, noting on June 9, 2009, the City Council adopted Resolution No. 059-09, thereby authorizing the Public Works Director change order authority up to $15,000 and the Mayor change order authority over $15,001 but less than $25,000. Furthermore, the Council directed that any change order over $25,001 shall be approved by the City Council and the change order authority was limited to a per project basis. It was the desire of the Council to also include general purchasing authority for budgeted items to facilitate the timely and efficient conduct of city business, and therefore, staff is recommending Resolution No. 059-09 be repealed in its entirety and provide the Public Works Director and Mayor with general purchasing authority for budgeted items in addition to change order authority, given the limitations previously defined. Councilmember Putaansuu moved and Councilmember Colebank seconded the motion to adopt Resolution No. 070-09, repealing Resolution No. 059-09, and providing the Public Works Director and Mayor with general purchasing authority for budgeted items in addition to change order authority, given the limitations previously defined. Upon vote, the motion passed unanimously. Adoption of Resolution No. 071-09, Authorizing the Mayor to Execute Contract with Kitsap Harbor Tours, LLC for Foot Ferry Service. City Clerk Kirkpatrick presented the staff report, noting at its June 23, 2009, meeting, the Council approved contracting for extended hours of foot feny service at a minimum for Festivals that fall on Sundays due to reduction of foot ferry service by Kitsap Transit through budget cuts. The City Clerk negotiated with Kitsap Harbor Tours to operate the Foot Feny on five festival event days that fall on Sunday for an hourly rate of $146.25 per hour for a minimum of 8 hours per event Sunday. Kitsap Harbor Tours will charge $1 each way and will reduce the overall costs by the amount collected on that event day. Invoices will be sent to the City of Port Orchard and the City Clerk will ensure payment is made by all three parties, the City of Bremerton, Port of Bremerton, and the City of Port Orchard. In addition, the Lodging Tax Advisory Committee (LTAC) met to discuss foot ferry funding for Festivals that occur on Sundays and on June 10, 2009, agreed that having the foot ferry operate for the five Festivals was within the boundaries of using Hotel/Motel Tax Funding. Staff recommends that the Council authorize the Mayor to execute a contract with Kitsap Harbor Tours, LLC for Foot Feny Services out of the Hotel/Motel Tax funds in an amount not to exceed $1,900, which is the City's one-third share of the total operation costs. Foot feny service hours for the following Sundays: June 28, August 9, August 30, September 6, and September 13, 2009. Minutes of July 14, 2009 Pa e 6 of8 Councilmember Chang moved and Councilmember Colebank seconded the motion to adopt Resolution No. 071-09, authorizing the Mayor to execute a contract with Kitsap Harbor Tours, LLC for Foot Ferry Services using the Hotel/Motel Tax funds in an amount not to exceed $1,900, which is the City's one-third share of the total operation costs. Foot ferry service hours for the following Sundays: June 28, August 9, August 30, September 6, and September 13, 2009. Upon vote, the motion passed unanimously. Adoption of Resolution No. 072-09, Authorizing the Mayor to Execute Contract with Rodney Ewing Repairs to Library Mural. Public Works Director Dorsey presented the staff report, noting on June 26, 2009, the Finance Committee reviewed a request from Library Director Kathleen Wilson to repair the Library Mural on the outside of the building. The Finance Committee recommended that the City contract with Mr. Rodney Ewing, who is a local artist, to repair the mural for an amount not to exceed $800. On July 8, 2009, the Public Property Committee met with Mr. Rodney Ewing who explained his background in working with painting on concrete surfaces and provided samples of his artwork. The Public Property Committee also recommended that the City move forward with hiring Mr. Ewing to make the necessary repairs to the Library Mural prior to the Cedar Cove Days event. Staff recommends adopting Resolution No. 072-09, authorizing the Mayor to execute contract with Rodney Ewing for Repairs to the Libra1y Mural upon review and approval of the City Attorney, in an amount not to exceed $800 Councilmember Powers moved and Councilmember Colebank seconded the motion to adopt Resolution No. 072-09, authorizing the Mayor to execute contract with Rodney Ewing for repairs to the Library Mural upon review and approval of the City Attorney, in an amount not to exceed $800. Upon vote, the motion passed unanimously. Authorization to Issue a RV Parking Permit Exemption. City Clerk Kirkpatrick presented the staff report, noting Mr. Hetrick, 1202 Garrison Avenue, has submitted a request for exemption of his parking permit for his 1981 Southwind Motor Home, License No. 261 MFD, which was previously exempted for the past five years. On October 28, 2008, the Council adopted Ordinance No. 040-08, which sets forth the criteria for a recreational vehicle exemption permit. Staff recommends the Council approve the request to issue a recreational vehicle parking permit exemption to expire when the vehicle is sold or no later than December 31, 2014. Councilmember Colebank moved and Councilmember Childs seconded the motion to authorize the issuance of a recreational parking permit exemption for a Southwind Motor Home, License No 261 MFD to expire when the vehicle is sold or no later than December 31, 2014. Upon vote, the motionfailed with two affirmative votes and.five dissenting votes. Councilmembers Powers and Childs cast the two affirmative votes. Approval of Public Event Application: Paint the Town. City Clerk Kirkpatrick presented the staff report, noting Kraig Kitchin has submitted an application for a Public Event, Paint the Town to be held on Sunday, August 2, 2009, in the downtown area of Bay Street Fredericks to Harrison. Starting July 27, 2009 and ending August 1, 2009, will be a clean-up for the Sunday, Paint the Town event. The City departments, as well as the Fire Department, have received the application and submitted their recommendations and/or comments before the Council meeting. The applicant Minutes of July 14, 2009 Pa e of 8 is seeking permission to host their event using a portion of the City's right-of-ways on Bay Street, with anticipated street closures on Sunday August 2nd. Staff recommends approving the Public Event application for the Paint the Town to be held on Sunday, August 2, 2009. Public Works Director Dorsey explained the event should be approved based on the conditions provided to Council; and Police Chief Townsend stated with short notice to the State the event organizers need to anticipate the possibility of the State not agreeing to allow the anticipated road closures. Councilmember Colebank moved and Councilmember Childs seconded the motion to approve the Public Event application for Paint the Town, which will be held on Sunday, August 2, 2009, using a portion of the City's right-of-ways on Bay Street, upon the review of the City departments, as well as the Fire Department. Upon vote, the motion passed unanimously. Discussion: Population Signs. Councilmember Clauson explained with our monumental milestone of increasing to over 10,000 residents we may want to replace the signs now, rather than waiting until the official demographic review provided by the Office of Financial Management and as a result of the 2010 census. Councilmember Clauson moved and Councilmember Putaansuu seconded the motion to authorize the City Public Works Director to update the population signs to include the most recent annexation of McCormick Woods. Upon vote, the motion passed unanimously. CITIZENS COMMENTS Dick Davis voiced his pleasure at being a City resident, thanked the Council and staff for their continued support, and voiced concern with the sewage odor problems and inquired as to when the City would be resolving the matter. Councilmember Clauson moved and Councilmember Putaansuu seconded the motion to not prorate the first eight days of the July 50% surcharge on water/sewer for the residents of McCormick Woods. Upon vote, the motion passed unanimously. Councilmember Chang recommended that new residents who wish to receive the Council's agenda by email to contact the City Clerk's office and request to be added to the Agenda Distribution List. Ron Bates, 204 Rockwell, voiced his opposition with recreational vehicle's (RV) being allowed to park on City rights-of-way. COMMITTEE REPORTS Councilmember Colebank reported that after several discussions with the Puget Sound Regional Council, the Transportation Policy Board voted to extend the comment period for the 2040 Environmental Impact Statement Alternatives to July 31, 2009. Minutes of July 14, 2009 Pa e 8 of 8 Councilmember Putaansuu announced that the July 15, 2009, Sewer Advisory Committee meeting has been reschedule for August 19, 2009, at 6:30 p.m. at the South Kitsap Water Reclamation Facility. Councilmember Clauson announced the Finance Committee will meet on July 15, 2009, at 7:00 a.m. at Bayview Deli and Java. Councilmember Childs announced the City's Tourism and Festival Chimes and Lights Committee will meet on Wednesday, July 15, 2009, at 5:30 p.m. at City Hall. Councilmember Powers announced the Kitsap Regional Coordinating Council (KRCC) will be hosting a meeting regarding the 108 Hud Loans on July 29, 2009, at 3:00 p.m. MAYOR'S REPORT Mayor Coppola reported on the following: • Attending the Kitsap County Housing Authority Budget meeting • Attending the Kitsap Transit Personnel Committee meeting • Attending the opening of a new self-help housing program • Meeting with Cary Bozeman, Executive Director for the Port of Bremerton regarding the parking garage • Speaking engagement at the South Kitsap Rotary Club • Meeting with Delilah regarding Paint the Town • Attending the Harrison Hospital ribbon cutting • Meeting with the new President ofthe Chamber of Commerce REPORT OF DEPARTMENT HEADS City Clerk Kirkpatrick announced there will be a Ribbon Cutting Ceremony at the Clayton Playground to celebrate the "Big Toy" located on Dwight street on Wednesday, July 15, 2009 at 1:00 p.m.; a Ribbon Cutting Ceremony at the McCormick Woods entrance to welcome them into the City on Monday, July 20, 2009, at 3:00 p.m.; and she attended the Gig Harbor Chamber of Commerce to begin forming partnerships with other area Chambers of Commerce. Public Works Director Dorsey announced the 2009 Storm Water System Plan presentation will be held at the July 21, 2009, Work Study Session and the bid opening for the Drilling of the Well No. 11 will be held on July 21, 2009, at 2:00 p.m., with bid approval at the July 28, 2009, regular meeting. City Treasurer Tompkins advised that the property Mr. Nystrom is interested in purchasing from the City is in fact being held in trust for the ULID and her office will conduct additional research as to how to properly dispose of the property and bring back at a future Council meeting. or Coppola adjourned the meeting. Patricia J. Kirkpatrick, CMC, City Clerk