09/11/2012 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of September 11, 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, John Clauson, Rob Putaansuu, Carolyn Powers, Jim
Colebank, and Cindy Lucarelli, were present and constituted a quorum. City Clerk
Rinearson, Public Works Director Dorsey, Deputy City Clerk Fernandez, Police Chief
Townsend, and City Attorney Jacoby were also present.
A. Pledge of Allegiance
Members of the VFW Post 2669 led the audience and Council in the Pledge of Allegiance.
2. CITIZENS COMMENT
Kathy Joiner thanked the Council for the new roof on the Port Orchard library. She also
invited the Council to the library fundraiser on September 15, 2012, at McCormick Woods
Golf Course.
Kathleen Wilson, Port Orchard Library Branch Manager, reported the fundraiser money
will go to new carpeting and furnishings in the library; she announced a new series called
"Fall at the Mall." This programming happens every Saturday at 1 p.m. at the Kitsap Mall;
and a live theater is scheduled at the Dragonfly Theater on October 25, 2012. The movie
"The Help" will also be shown for free at the Dragonfly Theater.
Gil Michael asked for clarity on Business Item 7C on who made the error referenced in the
staff report. Councilmember Putaansuu explained the error was on behalf of City staff. The
City installed a different meter, and the data being reported to the Finance Department was
incorrect.
3· APPROVAL OF AGENDA
Councilmember Powers MOVED and Councilmember Putaansuu seconded the
motion approving the Agenda. Upon vote, the motion passed unanimously.
4· APPROVAL OF CONSENT AGENDA
A. Approval of Claim Warrants Nos. 58157 through 58259 in the amount of
$345,986.68; Augusts' Payroll Warrant Nos. 144741 through 144769 in the amount
of $785,987.06; and Treasurer's check book in the amount of $2,516,019.86.
B. Approval of August 21, 2012, Work Study Session Meeting Minutes
C. Approval of August 28, 2012, Council Meeting Minutes
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Councilmember Colebank MOVED and Councilmember Putaansuu seconded
the motion approving the Consent Agenda. Upon vote, the motion passed
unanimously.
5· PRESENTATION
A. 9/11 Memorial Presentation/Proclamation
Dave Fergus, Rice Fergus Miller, gave a presentation of 9/11 and the 9/11 Memorial. Mayor
Matthes presented a proclamation to Dave Fergus proclaiming September 11, 2012 as 9/11
Remembrance Day.
B. Proclamation: Constitution Week
Mayor Matthes presented a proclamation to Barbara Simmons proclaiming the week of
September 17-23, 2012 as Constitution Week.
6. PUBLIC HEARING
No Public Hearings were held.
7· BUSINESS ITEMS
A. Approval of Contract No. 066-12, Authorizing the Mayor to Execute an
Agreement with PACE Engineers, Inc., for West Sound Utility District
Water Purchase Study
Public Works Director Dorsey presented the staff report, noting given the recent increase in
both residential and commercial development activity within the Sedgwick/Sidney area, aka
the Glenwood Joint Planning Area ("JPA"), the water source capability of the 390 water
zone providing water source to the JPA is now limited and therefore impacting the City's
ability to issue Binding Water Availability letters for the area. Three (3) alternatives to
satisfy this condition currently exist being, 1) purchase water from the City of Bremerton via
the McCormick Woods system to the west, 2) bring Well No. 10 on-line at a cost of
approximately $6 million and 3) purchase water from West Sound Utility District to the
east. Since West Sound Utility District is both willing and capable in the task of providing
wholesale water to the City of Port Orchard's 390 Zone, it is in the City's best interest to
fully understand both the associated short term and long term purchase implications and
weigh them against the other alternatives and to establish expectation within the JP A by the
development community. The City has received a proposal from our water system engineer,
PACE Engineers, Inc. in the amount of $37,000 to perform the study. PACE Engineers, Inc.
is listed on the City's 2012 Professional Services Roster.
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Councilmember Putaansuu said this was discussed at the Utility Committee meeting, and
they would like to bring Well No. 10 online for $6,ooo,ooo; however, a graduated rate
increase was passed. The first rate increase only funded the deficit we were running in, and
future increases will fund our capital plans. We just cannot afford it right now. Additionally,
$1,000,000 of our reserves was spent on Well No. g. The Utility Committee does not want
to impede development of Sidney /Sedgwick, and wants to make sure the City is getting the
best deal.
Councilmember Putaansuu MOVED and Councilmember Lucarelli seconded
the motion to authorize the Mayor to execute Contract No. 066-12 with Pace
Engineers in the amount not to exceed $37,000 for the West Sound Utility
District wholesale water purchase study. Upon vote, the motion passed
unanimously.
B. Approval of Contract No. 067-12, Authorizing the Mayor to Execute an
Agreement with the Washington State Department of Commerce Regarding
a Grant for the Bay Street Pedestrian Path
Public Works Director Dorsey presented the staff report, noting the 2011 -2013 State
Capital Budget includes an appropriation of $500,000 for use on the City's Bay Street
Pedestrian Pathway Project. The Department of Commerce ("Commerce"), being the
Contract Administrator, will retain up to a maximum of $7,500 to cover their
administrative costs. Accordingly, the City will receive a net Grant award of $492,500. The
grant funds appropriated will be used to complete identified segments within the Phase 1
limits of the federalized Bay Street Pedestrian Pathway Project. Costs may include, but are
not limited to, environmental/cultural review, land/right-of-way acquisition, permits,
material testing, field staking, as-built data gathering, construction and construction
management. Internally, the project is a joint management effort between the City's Public
Works Department, Planning Department and Finance Department. The City has
completed the Contract Readiness Survey with Commerce and meets the Special Terms and
Conditions of the General Grant State Fund requirements. The execution of Commerce
Grant SD12-963-136 will result in the reimbursement of costs incurred as the City moves
forward in the completion of identified segments within the Bay Street Pedestrian Pathway
Project. It is anticipated that all funding will need to be spent by June 30, 2013.
In response to Councilmember Powers, Public Works Director Dorsey said there is an array
of tasks that the money can be used for reimbursement. The overall project, which goes
from ferry terminal to ferry terminal, is in two phases. Phase 1 goes from downtown to just
the eastside of the Westbay Center, and Phase 2 goes from the Westbay Cener to Annapolis
Ferry Terminal. This is a federal project. As part of the right-of-way certification, the project
has been broken up into segments. The Port of Bremerton Waterfront Park is Segment No.
2, and they are at 70% completion with the design. Segment No.2 will be built before the
June 30 deadline. Segment No. 5 is the next identified segment which goes from Etta
Tur_ner Park to the end of Phase 1; it is a property that staff is working with Bob Hampton
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on for another donated easement. As long as the City has donated easements and local or
state money, we don't have to complete federal project. We also are going to receive
$84,000 from federal funding to move forward the federal easement acquisition process in
2013. The Department of Commerce has said as long as we have obligated the money and
are under construction, we have two years to spend it. But to be cautious, staff is shooting
for June 30 to spend as much of it as possible.
In response to Councilmember Childs, Public Works Director Dorsey said Segment No.1 is
from the downtown ferry terminal to the gazebo. The pathway will come into the concrete
area just past the wooden boardwalk. We are going to have to rebuild the seawall where the
steps come down. The next logical segment would be to build Segment No. 1 and have a
complete pathway from the ferry terminal to the west edge of the Marlee Apartments.
In response to Councilmember Chang, Public Works Director Dorsey said that Segment No.
2 and 5 will be complete by June 30. Then the next logical step is Segment No. 1, but
funding will need to be found.
Councilmember Childs MOVED and Councilmember Lucarelli seconded the
motion to approve and execute Contract No. 067-12, thereby authorizing the
Mayor to execute the Department of Commerce Grant Agreement SD-12-963-
136 regarding grant funding for the Bay Street Pedestrian Pathway Project.
Upon vote, the motion passed unanimously.
C. Council Approval of Settlement Terms and Authorization for Public Works
Director to Send Letter Regarding Disputed Utility Billing at 5151 St.
Andrews Place
Public Works Director Dorsey presented the staff report, noting in 2010, after an earlier fire
destroyed much of the building, the McCormick Woods Golf Course Cart Barn
reconstruction included a water service meter upsizing request/new meter drop that was
not correctly reported to the City's Utility Billing Department. The result of this water
meter misinformation and subsequent reading was an under billing of $780.16 to the utility
account in 2010, 2011, and three months of 2012. At the request of C&M Golf, LLC, this
item was discussed at the August 17, 2012, Utility Committee Meeting with Committee
direction to bring this utility billing dispute before the full Council for approval of the
proposed settlement terms, being the waiver of utility billing for 2010 and 2011. Given the
amounts already billed/paid thus far in 2012, if past billing within 2010/2011 is to be
waived as a settlement to the disputed billing, no additional charges would be due.
Councilmember Putaansuu said the customer had a fire in their utility shed in 2010 and the
City installed a new water meter. We were billing incorrectly for two and a half years. The
customer contacted Councilmember Putaansuu as Chair of the Utility Committee when he
got the bill, and Councilmember Putaansuu recommended that he attend the Utility
Committee meeting, which he did. The City has the legal right to collect the money, but the
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Utility Committee felt the right thing to do was to have him pay for the 2012 water he was
not billed for, but to waive 2010 and 2011.
Public Works Director Dorsey added that the error was from Public Works and that the City
has three different meters that look the same but read in thousandths, hundredths, and
tenths. The city has been working to standardize the meters. For the last two months, the
Utility Billing and Public Works departments have been auditing every meter to verify it is
reading correctly.
Mayor Matthes discussed the letter received from Mr. Cucciardi and the response that he
sent to him stating that the City decided he did consume 407,000 gallons of additional
water and were sorry the billing did not capture it, but State RCW says the City has the
responsibility to collect for the water use. There is no dispute that the water was used, state
laws says we should collect it, and this would be setting a precedent of not collecting, which
could cause a problem.
Councilmember Chang said 407,000 gallons is a lot of water to not bill for. He understands
the user's concerns, but the City is not a private company, but a municipality that provides
goods to people that they have used. He is also concerned additional under billings will be
discovered in the audit, and perhaps the motion should be to forgive all under billings, not
just one prominent account. He doesn't believe the other rate payers should absorb the
cost.
Councilmember Colebank said the customer may not have used as much water if he knew
what the cost was. He feels it is the right thing to do, regardless who the customer is.
Councilmember Clauson asked for clarification on the RCW, he believed it allows the City
to go back and collect, but does not require us to go back and collect.
City Attorney Jacoby said the RCW does not require the City to collect; it just gives them
the ability to collect for up to six years.
Councilmember Putaansuu MOVED and Councilmember Colebank seconded
the motion to approve settlement terms as presented and authorize Public
Works Director to send a letter of clarification to C&M Golf LLC, Utility Billing
Account No. 002671-0000. Upon vote, the motion passed with six affi.Mnative
votes and one dissenting vote. Councilmember Chang cast the dissenting
vote.
D. Public Event Application: Ride Around the Sound
City Clerk Rinearson presented the staff report, noting each year several organizations
request permission to close certain City streets; request the use of City parking lots; and/ or
use City Parks. The American Lung Association of the Mountain Pacific has submitted their
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application to use a portion of the City's right-of-ways for a public event, Ride Around the
Sound, on Saturday, September 15, 2012.
This is a fundraising event focusing on a small community bike ride to raise funds for the
American Lung Association of the Mountain Pacific. The bicyclist will follow the regular
laws of the road and will not need traffic control.
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 Colebank MOVED and Councilmember Childs seconded the
motion to approve the public even application from the American Lung
Association of the Mountain Pacific, allowing them to hold their public event
using a portion of the City's right-of-ways as presented, on Saturday,
September 15, 2012. Upon vote, the motion passed unanimously.
8. COMMITIEE REPORTS
Councilmember Clauson reported the next Finance Committee meeting is scheduled for
September 26, 2012, at 7:30 a.m. He also reported that the City had their Entrance
Conference with the State Auditor. The audit will cost $23,400. The Exit Conference would
be where they share any findings. The City has only had one finding in the last 30 years.
Councilmember Childs reported that the next Economic Development/Tourism meeting is
scheduled for September 12, 2012, at 3:30 p.m. at City Hall. He said that the people of Port
Orchard are great marketers of the City, and now the Police Department has been noted in
the local news for some great work.
Police Chief Townsend told the story of a woman whose wheelchair was stolen. Officer
Donna Main responded to the call, and took the extra step of going to St. Vincent's and
getting a donated wheelchair to give to the victim.
Councilmember Chang said he had the privilege of riding along with Officer Donna Main for
two hours. She is absolutely fearless and energetic. He would recommend everyone to ask
for a ride along if her shift is not too busy. She loves the community and her job.
Councilmember Putaansuu reported the next Utility Committee meeting was Friday
morning and the Sewer Advisory Committee meets again in October.
Councilmember Powers reported the next Public Property Committee meeting is scheduled
for October 9, 2012. Councilmember Chang reported that at today's meeting there was
discussion about the roundabout near the totem pole, which will be coming back to Council;
the marina restroom was destroyed, and this will come before Council; and there was a
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complaint from a resident about trees in a right-of-way, which staff needs to research
further. Councilmember Chang and Councilmember Lucarelli had a tour of the pump
station near the marina restroom.
Councilmember Chang reported that the Lodging Tax Advisory Committee has met three
times in the past ten days. They have received requests totaling $151,000 and the amount
available for allocation is $87,000. There is also a clause which will sunset, and the
committee will be relying on our legal counsel to guide us through that. The Committee
needs to figure· out if that affects some of the amounts requested by the applicants.
Councilmember Chang will ask the committee give two recommendations based on two
different assumptions.
In response to Councilmember Childs, Councilmember Chang said the amount to be
dispersed included the amount that was set aside in 2012.
City Attorney Jacoby said that the Lodging Tax Advisory Committee will make its
recommendation, and that the Council will do what it wants to do in terms of allocating the
money. If the City has something specific in mind for the hotel/motel funds, including the
overage from last year, they need to put a proposal in front of the committee. All use of the
funds, including City use of the funds, needs to be vetted.
Councilmember Chang's understanding was the money would be set aside for the
remainder of 2012, and then rolled into 2013 funding if not used.
Councilmember Clauson agrees that the Council agreed to set it aside, but cannot
remember if action was taken, and suggested making a motion to set aside an amount. He
does not want to present a total dollar amount to the committee, if the Council knows ahead
of time that they want to set some aside that will not be allocated by the committee.
Councilmember Putaansuu wants a reserve for the fund, because it is a projection.
Otherwise, he is not comfortable with setting it aside unless there is a purpose for it.
Councilmember Clauson said some agencies allocate a percentage of the funds received to
avoid an over-allocation of funds.
City Attorney Jacoby said on June 26, 2012, it was discussed. A motion was made for
Resolution No. 018-12 to allocate $2,700 to the Cruz, and the remainder of the $12,785 was
to be reserved for future city tourist needs. That motion was approved 6-1.
Councilmember Chang said he was concerned about rolling the money over for an indefinite
amount of time. Traditionally, the left over money gets rolled over into the next funding
cycle and is not held in perpetuity.
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In response to Councilmember Childs, City Attorney Jacoby said the decision of the Council
when passing Resolution No. 018-12, was ambiguous to staff and the committee Chair, and
asked the council what their intent was when passing the resolution, to set that amount
aside until some future Council action or was it intended to roll it over in 2013 like it has
done in the past.
Councilmember Lucarelli said the City has not had a chance to use the funds in 2012, but
that would not happen if the money is getting allocated in 2013 planning. She felt if the
funds were not used by the end of 2012, then it could rollover into 2013.
Councilmember Childs said there was not an expiration date for the use of the funds that
were set aside.
Councilmember Putaansuu did not recall that motion, and thought it was just being set
aside and not being spent at that time.
Councilmember Chang felt a motion to set aside funding was not necessary, because after
the committee has made its recommendation, the council gets to make the final decision on
the allocation and can set that money aside at that time.
City Clerk Rinearson will confirm with the City Treasurer when he gets back that the City
has until the end of 2012 to spend the remainder of the funds going through the appropriate
process and what happens in 2013.
Councilmember Clauson thinks it is a disservice to the advisory committee to do an
allocation on a fictitious number. He feels the money should be set aside ahead of time and
let the committee start out with a set amount that is going to be allocated.
Councilmember Putaansuu is in support of identifying funds for a City project that the
Council wants to fund. He is not comfortable with setting money aside without a project
attached to it.
Mayor Matthes said the City Treasurer often advises that the City's responsibility is to use
the money for the betterment of the community, and not build a savings account. He thin~
the hotel/motel funds should be used to the greatest majority possible to get more heads in
beds.
Councilmember Powers said it is corrupting the process by just setting the money aside
without a purpose. She doesn't know how it will be handled for allocating the money when
is not attached to a project. Once it is added to the pot, it is up for grabs. How does the
Council say $10,000 is not up for grabs?
City Attorney Jacoby said the money will sit in the fund until a project comes forward that is
presented to the LTAC for review.
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Page 9 of 10
Councilmember Childs CALLED for the question. Councilmember Colebank
seconded the motion. Upon vote, motion passed unanimously.
Councilmember Chang MOVED and Councilmember Clauson seconded the
motion to set aside the carryover of $to,ooo and remove it from the allocation
until a date to be determined by the Council. Upon vote, the motion passed
with four affirmative votes and three dissenting votes. Councilmembers
Putaansuu, Chang, and Powers cast the dissenting votes.
Councilmember Lucarelli reported that Chimes and Lights is set for December 1, 2012, and
the LCOL Bruce Crandall will be the honorary tree lighter. Brochures will be printed in a
week, and the committee is finalizing the last details.
Councilmember Colebank had no meetings in August. PRSC Transpol and KRCC Transpol
meet on Thursday.
9· MAYOR'S REPORT
The Mayor Matthes reported on the following:
• September-13, 2012 will be a Town Hall Meeting at City Hall from 6 p.m. - 8 p.m.
• September 27, 2012, 6:30p.m. -8:oop.m. will be a KCDEM program called
"Mapping Your Neighborhood."
• The news article from KOMO regarding Police Officer Donna Main.
• He and Councilmember Clauson gave the Appropriations Chair a tour, via the water,
of City projects that need State funding.
10. REPORT OF DEPARTMENT DIRECTORS
Public Works Director Dorsey confirmed that the Utility Committee meeting is this Friday,
September 14, 2012; the Port's Water Street Boat Ramp improvement program is 6o%
complete and they are looking to go to bid at the end of October with the project being
completed by March deadline; and staff had a preconstruction meeting with I&E for the
Well No.9 project, it looks like the majority of the project will be complete this year.
City Attorney Jacoby reminded Council there will be as-minute closed meeting after the
adjournment of the meeting to discuss union negotiations.
11. CITIZENS COMMENTS
Gil Michael said he was disappointed with certain members of the Council. He
commended Councilmembers Putaansuu, Chang, and Powers for standing for what is right
for this community. He feels this fund became contentious about five years ago. He thinks it
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is time for the Council to become a lot less contentious on the use of these funds, and to
approve the committee's recommendation.
In response to Mr. Michael, Councilmember Lucarelli said that the Council cannot approve
every recommendation of the committee, for example, the last recommendation had two
applications that were not legally allowed to receive funding, because they were for-profit
businesses, as pointed out by City Attorney Jacoby.
Gil Michael stated he asked City Attorney Jacoby to provide the documentation from the
State Attorney General's Office that he quoted, and he has not received it.
City Attorney Jacoby said he has never received the request, and asked that an email be sent
requesting the document.
Jeff Brayden commended the Council and Mr. Dorsey on the progress of the pedestrian
path. He wanted to caution naming it a pedestrian path when there are many different uses
for it. He asked that the term "pedestrian" not limit its use.
Jerry McDonald said that Bremerton and Port Orchard need to think together, not
individually, in getting the tourists on our side and sharing them. The Cities need to make
this area a destination. He recommended contacting Roger Brooks, who specializes in
destination development . He can work with us for $2,000, and he would like to see
Bremerton and Port Orchard fund that expense.
Councilmember Clauson differs with Mr. Michael and feels the hotel/motel tax has
always been contentious. He also has had the opportunity to work with Jerry McDonald on
one other project, and he is a bulldog. The City should really consider what he is proposing,
and take a serious look at it.
12. EXECUfiVE SESSION
No Executive Session was held.
13. ADJOURNMENT