Loading...
06/26/2012 - Regular - MinutesCity of Port Orchard Council Meeting Minutes Regular Meeting of June 26, 2012 1. CALL TO ORDER AND ROLL CALL Mayor Tim Matthes called the meeting to order at 7:00p.m. Mayor Pro-Tem Jerry Childs and Councilmembers Fred Chang, Jim Colebank, Cindy Lucarelli, Carolyn Powers, Rob Putaansuu and John Clauson were present and constituted a quorum. Public Works Director Dorsey, City Clerk Rinearson, City Attorney Jacoby, and Office Assistant II Dennison were also present. A. Pledge of Allegiance Officer Maureen Wheeler led the audience and Council in the Pledge of Allegiance. 2. CITIZENS COMMENT Paul Drzewiecki, a member of the Port Orchard Library Board, urged the Council to move forward with replacing the library roof, as the Port Orchard Library is part of a vital downtown community. He further mentioned that the current roof leaks are causing issues with the books and disrupts the operation of the library. Gordon Jedgeley, informed the Council that he has established a new company, 'Link It USA', which places security locking devises on shopping carts, in the hopes of eradicating damage done to property due to shopping carts. Kathy Michael, asked the Council to please consider and approve the Resolution which will disperse the Lodging Tax Funds based on the recommendation by the Lodging Tax Advisory Committee. Nick Whittleton, informed the Council that in 2006, the American Dental Association issued a warning which stated that concentrated baby formula should not be mixed with fluoridated water; and further urged the Council to direct that the infant formula warning be added to the water bills if fluoride is kept in the water. 3· APPROVAL OF AGENDA Councilmember Putaansuu MOVED and Councilmember Childs seconded the motion to approve the Consent Agenda. Upon vote, the motion passed unanimously. 4· APPROVAL OF CONSENT AGENDA A. Approval of Claim Warrants Nos. 57763 through 57824 in the amount of $1,160,107.12; B. Approval of the June 12, 2012, Council Meeting Minutes; Minutes of June 26, 2012 Pa e2 of9 C. Approval of Fireworks Display Permit: Eagle Fireworks, Inc.; and D. Approval of Public Event Application: Celebrate Life-Walk for Life and sK. Councilmember Colebank MOVED and Councilmember Putaansuu seconded the motion approving the Consent Agenda. Upon vote, the motion passed unanimously. 5· PRESENTATION A. Open Aired Market on Bay Street Update Don Ryan, president of the Port Orchard Bay Street Association, updated the Council on the Port Orchard Public Market, mentioning that he will give a full presentation on the market at next month's meeting. He stated that the public market is an idea; a destination venue which the Port Orchard Bay Street Association has created as an attempt to help revitalize Port Orchard's historic downtown core. This market would help bring tourists and the general public out to bring funds to the City and create overnight stays which will help local businesses to make a profit. He believes that the market could bring in 200 to 270 thousand people per year. Mr. Ryan further explained that the Lodging Tax funds were created to be used by local organizations; however, it was discussed that these funds might be held for a rainy day, which is not what the Lodging Tax Advisory Committee recommends. He encouraged the Council to release the funds to the organizations that can do the greatest good to help benefit Port Orchard. 6. PUBLIC HEARING There were no public hearings. 7· BUSINESS ITEMS A. Adoption of Resolution No. 018-12, Regarding the Award of Fiscal Year 2011 Lodging Tax Cash Carryover Revenue City Attorney Jacoby presented the staff report, noting that in accordance with the procedures set forth in Chapter 67.28 RCW, the City collects lodging tax revenue and, after considering the recommendations of the City's lodging tax advisory committee, the City Council annually distributes said funds to eligible projects, festivals, and events. The initial awards of lodging tax revenue are based on projected tax receipts, which sometimes results in the accumulation of unallocated cash carryover tax revenue. In fiscal year 2011, the City accumulated the sum of $16,324 in lodging tax cash carryover revenue. In August 2011, the City Council adopted Resolution No. 027-11 setting forth procedures for the annual distribution of lodging tax revenue, including surplus funds. In accordance with Resolution No. 027-11 and RCW 67.28.1817, the lodging tax advisory committee sought and Minutes of June 26, 2012 Pa e 3 of9 received applications from eight interested parties and has submitted its recommendation to the City Council concerning the distribution of the fiscal year 2011 lodging tax cash carryover revenue. Two of the projects, as described in the applications from Cedar Cover Inn and the Port Orchard Bay Street Association, do not meet the statutory criteria to receive lodging tax revenue. This is the opinion of the City Attorney and the State Auditor's office. Cedar Cove Inn is seeking funds for several activities, including a website upgrade, vacation rental site advertising fees, and brochure printing. The Port Orchard Bay Street Association is seeking funds for advertising the future Port Orchard public market that is being developed by Don Ryan. The basis for this opinion is as follows. RCW 67.28.1816 provides that lodging tax revenue may be used 1) for the marketing and operations of special events and festivals; and 2) to support the marketing, operations, and capital expenditures of tourism-related facilities owned by nonprofit organizations formed under sections 501(c)(3) or 501(c)(6). The definition of a tourism-related facility is set forth in RCW 67.28.080(7). The Cedar Cove Inn and Don Ryan's public market are ineligible to receive lodging tax revenue because they do not meet the funding criteria set forth in section 1816. First, neither applicant is seeking funds for a special event or festival. Second, they are both privately owned and operated for-profit enterprises. In addition, RCW 67.28.1815 provides that lodging tax revenue shall be credited to a special fund and used solely for the purpose of paying all or part of the cost of "tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities." The definition of tourism promotion is set forth in RCW 67.28.080(6). While there is an argument that Cedar Cove Inn and the future public market are requesting money in order to promote tourism, i.e., to.attract and welcome tourists, the State Auditor's position is that lodging tax revenue may only be used to fund special events, festivals, or non-profit organizations and facilities that are engaged in activities that are intended to broadly promote tourism within a specific type of industry (such as the hospitality industry or all restaurants) or a specific community (such as a chamber of commerce). In such cases, the public monies are being used to promote a broad public interest that benefits many. By contrast, lodging tax revenue may not be used to fund a private for-profit business that will receive all or the majority of the benefit associated with the expenditure of the public funds. Finally, the use of public monies to fund private for-profit organizations creates problems associated with the gifting of public funds. At the request of the Council, two alternative resolutions are presented. One resolution would make an award of $2,700 to the Cruz and reserve the balance of the surplus funds for future Council action. The other resolution would adopt the recommendations of the lodging tax advisory committee, with the exception of the awards to the Cedar Cove Inn and the Port Orchard Bay Street Association. Minutes of June 26, 2012 Pa e4ofg Councilmember Chang MOVED and Councilmember Powers seconded the motion to adopt Resolution No. 018-12, regarding the distribution of Fiscal Year 2011 Lodging Tax Cash Carryover Revenue in the amount of $12,785. Upon vote, the motionfailed with two affirmative votes andfive dissenting votes. Councilmember's Putaansuu, Childs, Colebank, Lucarelli and Clauson cast the dissenting votes. Councilmember Childs mentioned that this money will be used to take advantage of unforeseen opportunities that may come up in the future. Councilmember Chang urged the Council to fill out an application which will go through the Lodging Tax Advisory Committee if a project comes up which will need to use the lodging tax funds. City Attorney Jacoby stated that the Council adopted Resolution 027-11, which explains the process the Lodging Tax Advisory Committee will follow in regards to lodging tax funds. Councilmember Childs MOVED and Councilmember Colebank seconded the motion to adopt Resolution No. 018-12, regarding the distribution of Fiscal Year 2011 Lodging Tax Cash Carryover Revenue in the amount of $2,700. Upon vote, the motion passed with six qffirmative votes and one dissenting vote. Councilmember Chang cast the dissenting vote. B. Approval of Amendment No 1 to Contract No. 065-11, Authorizing the Mayor Pro Tern to Execute and Agreement with Kitsap County Prosecuting Office Regarding Legal Services for Condemnation. At 7:34 p.m., Mayor Matthes and Councilmember Colebank recused themselves declaring a conflict of interest. City Attorney Jacoby presented the staff report, noting that in July 2011, the City Council approved an Interlocal agreement between the City and the Kitsap County Prosecuting Attorney pursuant to which the County agreed to provide legal services in support of the City's acquisition of right-of-way and/or slope easements owned by then Mayor Lary Coppola and current Councilmember Jim Colebank. The agreement will expire on July 24, 2012. While much progress has been made, .the necessary acquisitions are not complete. Accordingly, City staff requests that the contract be extended for an additional one year term. In addition, the County has increased its hourly rate from $115 per hour to $120 for attorneys and from $92.00 to $95.00 for paralegals. Councilmember Clauson MOVED and Councilmember Chang seconded the motion to approve Contract Amendment No. 1 between the City of Port Orchard and Kitsap County Prosecuting Attorney for Legal Services related to Condemnation and the Tremont Street Widening Project, and authorize the Minutes of June 26, 2012 Pa esof9 Mayor Pro-tem to execute the agreement. Upon vote, the motion passed unanimously. At 7:37 p.m., Mayor Matthes and Councilmember Colebank returned to the meeting. C. Consideration of the Library Roof Replacement Bid Public Works Director Dorsey presented the staff report, noting that on May 12, 2012, a Notice to Bidders -Invitation to Bid was published in the Kitsap Sun, the Port Orchard Independent and on the Builder's Exchange Webpage for the 2012 Library Roof Project (PW2012-003.) On May 18, 2012 a Non-Mandatory Pre-Bid Conference was held at City Hall and the Library. At u:oo AM on June 1, 2012 bids received were opened by the City Clerk and the Public Works Director, with bids received as follows: Beisley, Inc. FPH Construction, Inc. $249.409.35 (tax included) $132,921.12 (tax included) Upon review by staff, it was determined that FPH Construction, Inc. was the lowest qualified bidder with a bid of $132,921.12 (tax included.) The low bid received exceeds the 2012 budget allocation for the library capital improvement program of $120,000. Councilmember Putaansuu MOVED and Councilmember Colebank seconded the motion to authorize the Mayor to execute a contract with FPH Construction, Inc. in the amount not to exceed $132,921 for the 2012 Library Roof Replacement Project. Public Works Director Dorsey stated that the lowest qualified bid is over the allotted budgeted amount and he will need Council to approve for additional funding to complete the project. Councilmember Putaansuu MOVED and Councilmember Lucarelli seconded the motion to amend the motion to an amount not to exceed $150,000 for the 2012 Library Roof Replacement Project and the remainder should come from the REET funds. Upon vote the main motion, as amended, passed unanimously. D. Consideration of a Temporary Vendor License and Lease of City Property to Snoop Dogz Hot-Dog Vendor City Clerk Rinearson presented the staff report, noting that Mr. John Guerrero, owner of Snoop Dogz, is requesting permission to vend on City property in front of the Foot Ferry Terminal. In the past three years, the City has rented this space to him and other hotdog vendors at a rate of $10 per month. In the past, the Council has directed the City Clerk to issue the temporary vendor license and collect the $10 per month lease amount from the various hotdog vendors for the above location. Minutes of June 26, 2012 Pa e 6 ofg This matter was reviewed by the Public Property Committee on June 12, 2012. POMC s.g6.oso provides that the vending site must be compatible with the public interest in the use of the street, sidewalk or other public space. It was discussed that the proposed vending site is too narrow for the cart and other items to fit properly in. the space. Additionally, it does not allow the citizens to use the entire sidewalk. Councilmember Childs MOVED and Councilmember Putaansuu seconded the motion to authorize the City Clerk to issue a temporary vendor's license, and to allow Snoop Dogz to operate a hot dog vending cart in the grassy area at the entrance of the Foot Ferry terminal and to collect a monthly rent in the amount of $10.00. Councilmember Powers mentioned that the Public Properties Committee does support the vendor; however, the location of the proposed site was too small, as the vendor did not have a lot of room for their supplies. This location also blocked access to a sign which is located next to the vending site. Councilmember Chang further explained that the Public Properties Committee did discuss other locations which the vendor could place his hot dog vending cart, but was unsuccessful in recommending a different site. Public Works Director Dorsey provided a map of the area and recommended that the parking area next to the sign, not on the grassy area, would be a possibility. They would need to make sure not to block the incoming cars turning into the parking lot and to stay within the Sidney right-of-way. Councilmember Putaansuu MOVED and Councilmember Clauson seconded the motion to amend the motion by allowing Snoop Dogz to operate a hot dog vending cart in the northeast corner of the parking lot, in the Sidney right-of- way, and to collect monthly rent in the amount of $to.oo. Upon vote the main motion, as amended, passed unanimously. E. Approval of Public Event Application: t6th Annual Cruisin Sunday Car, Truck and Bike Show City Clerk Rinearson presented the staff report, noting that Larry Rubio from the Christian Life Center has requested permission to use and close certain City streets on Sunday, August 26, 2012 for the 16th Annual Cruisin' Sunday Car, Truck, and Bike Show (Cruz-for-Food Drive). This is a free community event that benefits the community with live so's -70's music, inflatable toys for kids, free food, and a food drive for families in need. It is expected that there will be 350 various makes and models of cars, ranging from low riders to classics. The Minutes of June 26, 2012 Pa e7of9 event has drawn over 5,000 people from our community. The event opens at 8:oo a.m. and closes at 4:30 p.m. City Departments, the Fire Department, and Kitsap Transit have reviewed the applications and have submitted their recommendations and/or comments, which have been provided to you. Councilmember Putaansuu MOVED and Councilmember Lucarelli seconded the motion to approve the public event application for the 16th Annual Crusin' Sunday Car, Truck and Bike Show, allowing them to hold their public event using a portion of the City streets and right-of-way as presented. Upon vote, the motion passed unanimously. 8. COMMITIEE REPORTS Councilmember Clauson reported the next Finance Committee meeting is scheduled for July 11, 2012 at Mood Dogs starting at 7:30 p.m. Councilmember Childs reported the next Economic Development Tourism Committee meeting is scheduled for July 11, 2012, at City Hall starting at 3:30 p.m. Councilmember Powers reported the next Public Property Committee meeting is scheduled for July 10, 2012, at Moon Dogs starting at 8:oo a.m. Councilmember Chang reported the next Lodging Tax Advisory Committee meeting is scheduled for July 18, 2012 at City Hall starting at 7:00 p.m. and mentioned that the Port Orchard Cash Mob is a group who will descend on a business to help boost sales for the day. The first one took place at Carter's Chocolates and Cosmo's Restaurant, and you may find information about them through Facebook. Councilmember Putaansuu reported that Well No. 9 is finalized and will be going out to bid; the next Utilities Committee meeting is scheduled for August 10, 2012 at the Family Pancake House starting at 7:30 a.m.; the Sewer Advisory Committee met last week, mentioning that Class A Bio Solids may be picked up in the parking lot for free; and he attended the christening of the Rich Passage I foot ferry. Councilmember Clauson reported the Sewer Advisory Committee, discussed the agreement the City has with West Sound Utility District indicating that it is expiring soon, and the Committee is working renewing the agreement. Councilmember Colebank reported he attended the christening of the Rich Passage I; attended the Puget Sound Regional Council Transportation Policy meeting on June 14, 2012; and attended the Peninsula Transportation Policy Organization meeting on June 15, 2012, where Kitsap Transit provided one of their newer buses to view, and also viewed several projects throughout Kitsap County. 9· MAYOR'S REPORT Mayor Matthes reported on the following; • Thanked the staff for helping to complete the Mayor's Report for July, which is dedicated to volunteering; • Read an email thanking Police Officer Walker for his service, kindness and dedication to a citizen during an incident; and • Mentioned two phone calls he received regarding Office Assistant II Jenine Dennison, mentioning she is helpful and friendly; and thank her for her services. 10. REPORT OF DEPARTMENT DIRECfORS Public Works Director Dorsey reported he attended an official kick off meeting for the DeKalb Pier project and Kitsap Regional Coordination Council Board approved $260,000 for the Cedar Sidewalk Project and $84,000 for the Bay Street Pedestrian Pathway, which will help to continue with the right-of-way acquisitions. City Clerk Rinearson reported the City Clerk's Office is working on updating the City's website, which will be brought before the Council; and reported that the numbers for the Sunday foot ferry service are in, with about 70 people riding during the 11 hour shift. City Attorney Jacoby reported the Washington Supreme Court announced new rules for misdemeanor case load standards for Public Defenders, effective September 1, 2013, which could affect the contract the City has with our Public Defender. 11. CITIZENS COMMENTS Kathy Michael voiced her displeasure with the Council's decision regarding the lodging tax funding allocations, mentioning that these are funds were actually collected by the hotels and should be spent on promoting the City. Gil Michael mentioned that all applicants submitted their applications in good faith for the cash carry over funds from 2011. To have them denied outright, for no reason stated by the Council, is very disrespectful. He asked the Council to provide the public with a plan of what these funds will be used for. 12. EXECUfiVE SESSION At 8:55 p.m., Mayor Matthes recessed the meeting for a 25-minute Executive Session regarding potential acquisition of real estate in accordance with RCW 42.30.110(b). City Attorney Jacoby was invited to attend; and the Mayor announced that no action would be taken as a result of the Executive Session. 13. ADJOURNMENT At 9 :20p.m. Mayor Matthes adjourned the meeting. ~~- Brandy Rinearson, CMC, City Clerk Minutes of June 26, 2012 Page 9 of9 ~~6l~e&~ Timothy C. Matthes, Mayor