10/23/2012 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of October 23, 2012
1. CALL TO ORDER AND ROLL CALL
Mayor Tim Matthes called the meeting to order at 7:00p.m. 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,
City Treasurer Mart~n, Office Assistant II Floyd, and City Attorney Jacoby were also
present.
Absent: Mayor Pro-Tern Jerry Childs
A. Pledge of Allegiance
Mayor Matthes led the audience and Council in the Pledge of Allegiance.
2. CITIZENS COMMENT
There were no citizen comments.
3· APPROVAL OF AGENDA
Councilmember Lucarelli MOVED and Councilmember Clauson seconded the
motion to add Business Item 7B, 321 Tremont Street and Acceptance of Fee
Title to the agenda. Upon vote, the motion passed unanimously. Mayor Pro-
tem Childs was absent.
Councilmember Putaansuu MOVED and Councilmember Colebank seconded
the motion approving the Agenda, as amended. Upon vote, the motion passed
unanimously. Mayor Pro-tem Childs was absent.
4· APPROVAL OF CONSENT AGENDA
A. Approval of Claim Warrants Nos. 58419 through 58491 m the amount of
$189,982.30
B. Approval of the October 9, 2012, Council Meeting Minutes
C. Adoption of Resolution No. 032-12, Surplus of Firearms
D. Approval of Contract No. 075-12, Authorizing the Mayor to Execute an Agreement
with Caseco Associates, Inc. for the 2012 Sidewalk Repairs/Replacements
Councilmember Colebank MOVED and Councilmember Putaansuu seconded
the motion approving the Consent Agenda. Upon vote, the motion passed
unanimously. Mayor Pro-tem Childs was absent.
5· PRESENTATION
Minutes of October 23, 2012
Page 2 of6
A. Proclamation -Arc of Kitsap and Jefferson Counties Awareness Day
Mayor Matthes presented a proclamation to Sherry Charlot, proclaiming October 26, 2012,
as Arc Awareness Day in the City of Port Orchard.
Sherry Charlot thanked the Mayor and Council on behalf of the 1500 clients, families, staff,
and friends of Arc of Kitsap and Jefferson Counties. She mentioned the first big fundraiser
titled '2012 Arc Awareness a Night of Stars' is sold out.
In response to Councilmember Powers, Sherry Charlot stated that the trucks which go to
establishments and pick up items never stopped. There were problems with the call center,
but this has been revamped, and hopefully is working now. They have 2 trucks for Kitsap
and Jefferson Counties, and have recently added Gig Harbor to the pickup area for
donations. Arc has a current contract with Value Village.
Councilmember Lucarelli thanked Sherry Charlot, saying she did a great presentation, and
she appreciates the pickup service.
Councilmember Clauson mentioned the organization is wonderful. He has had
opportunities to attend the Friday night social, which are very well attended.
6. PUBLIC HEARING
A. Anticipated 2013 Budget Revenue Sources
City Treasurer Martin presented the staff report, noting the City legislative body is
required to hold a Revenue Sources Hearing on current expense budget revenue sources
for the coming year's budget, including consideration of possible increases in property
tax revenues. (Chapter 251, Laws of 1995. codified as RCW 84.55.120.) The hearing is
required before the legislative body votes on a property tax levy for the upcoming year.
The deadline for setting the levy for property tax collection for 2013 is on or before
November 30, 2012.
This Hearing is a part of the public process that leads to an Ordinance being forwarded
to the Kitsap County Assessor along with a Levy Certification in order to set the
property tax levy for collection in the 2013 tax year.
"Current expense budget" means that budget which is primarily funded by taxes and
charges and reflects the provision of ongoing services. It does not mean the capital,
enterprise, or special assessment budgets.
At 7:16p.m., Mayor Matthes opened the public hearing.
Minutes of October 23, 2012
Page 3 of6
City Treasurer Martin discussed the following topics regarding 2013 Revenue Sources:
• Overview of the city's current expense and street budgets;
• Breakdown of the 2013 tax revenue which includes:
-Sales Tax;
-Property Tax; and
-Other Tax's.
• Revenue comparison;
• Property tax collection history;
• Property tax comparison, 2011 to 2012;
• Retail sale & use tax revenue;
• Sales tax collection;
• Sales tax received by month;
• Sales tax collection, 2010 to 2012; and
• Seasonal revenue flow.
Don Ryan stated there is a small gambling tax imposed on restaurants, bars, and
establishments which have pull tabs. He noticed on the presentation that gambling tax is
collected by the City at 0.84% of 1%, which is about $8o,ooo annually. He said at his
business, the 110 Lounge, he pays a tax on the gambling which is created at their
establishment. At the end of the month, the State imposes a 1.8% tax on the revenue that is
kept by having this entertainment revenue source at establishments. Last month, his
establishment did $1,276.50 in gambling, which is a fictitious amount; because $895 is the
replay tickets amount, meaning the people who won their own money back. At the end of
the month, he actually got in his hands $381.50.
He further explained that the City of Port Orchard levy's a tax as well. He says the City is
taxing on a factitious amount. He is not against paying taxes, but he would like the Council
or Finance Committee to look into a more fair tax. Right now it is based on a fictitious
number which no one understands.
In response to Gil Michael, City Treasurer Martin confirms that the City receives 0.84%
from every 1% for sales tax.
Mayor Matthes closed the public hearing at 7:57 ·p.m.
7· BUSINESS ITEMS
A. Adoption of Resolution No. 033-12, Adopting the Final Plat of McCormick
Meadows Division 2
Public Works Director Dorsey presented the staff report, noting the site is legally identified
as McCormick North Phase II Preliminary Plat and was granted approval by the Kitsap
County Hearing Examiner Pro Tern on April 28, 2006. The applicant subsequently
Minutes of October 23, 2012
Page4 of6
requested an amendment to the approved preliminary plat reducing the overall number of
lots with other minor design changes. The revised preliminary plat renamed McCormick
Meadows was approved by the Port Orchard Hearing Examiner on February 16, 2011.
Phased McCormick Meadow, Division 2, is creating 112 single family residential lots. The
applicant has installed or bonded for, roads, sewer and storm drainage improvements.
Streets within this final plat are public use and are being accepted into the City's road
system.
City Attorney Jacoby stated that the language on page 2 of Resolution No. 033-12, under
the 'Further That' section, should be changed from 'five' years to 'seven' years.
In response to Councilmember Chang, Public Works Director Dorsey stated originally this
preliminary plat was developed based on an earlier model, which includes smaller lots and
back loaded alleys. This product has not been moving, so they came in and reduced the
number oflots, got rid of the alleys and impervious surfaces, and created larger lots.
Councilmember Powers MOVED and Councilmember Clauson seconded the
motion to adopt Resolution No. 033-12, as amended, adopting the Final Plat of
McCormick Meadows Division 2. Upon vote, the motion passed unanimously.
Mayor Pro-tem Childs was absent.
B. 321 Tremont Street and Acceptance of Fee Title
At 8:03 p.m., Mayor Matthes and Councilmember Colebank recused themselves declaring a
conflict of interest. Interim Mayor Pro-Tern Powers continued the meeting.
Greg Jacoby presented the staff report, noting the Kitsap County Prosecutor, on behalf of
the City, negotiated a resolution with Mr. Coppola that was approved by the Superior Court
earlier this month. Mr. Coppola will be signing these documents later this week. There are a
couple of documents that require the Mayor Pro-tem's signature.
Councilmember Lucarelli MOVED and Councilmember Clauson seconded the
motion to authorize the Mayor Pro-Tern to execute on behalf of the City of Port
Orchard, all such documents necessary to complete the transfer of the title for
real property and improvements located at 321 Tremont Street in Port
Orchard. Upon vote, the motion passed unanimously. Mayor Pro-tem Childs
was absent and Councilmember Colebank was recused.
Mayor Matthes and Councilmember Colebank returned to the meeting at 8:06p.m. Mayor
Matthes continued the meeting.
8. COMMITTEE REPORTS
Minutes of October 23, 2012
Pages of6
Councilmember Clauson reported the next Finance Committee meeting is November 2,
2012, where they will be meeting with the different departments in preparation for the
budget.
Councilmember Lucarelli reported the Economic Development and Tourism Committee
met and discussed the Festival of Chimes and Lights, and the next meeting is November 14,
2012, at 3:30 p.m. at City Hall.
Councilmember Putaansuu reported the next Utilities Committee meeting is November 9,
2012, at 7:30 a.m. at the Pancake House; and the Sewer Advisory Committee met last week,
where discussions were held regarding budgets.
Councihnember Powers ·reported the next Public Properties Committee meeting IS
November 13, 2012, at 8:ooa.m. at Moondogs, with the agenda to be determined.
Mayor Matthes reported the next Work Study Session is scheduled for November 20, 2012;
and provided an update on the second Town Hall meeting which was held on October 11,
2012.
Councilmember Colebank reported that on October 11, 2012, he attended the Puget Sound
Regional Council Transportation Policy Board meeting in Seattle where 2 items were
forwarded to the Executive Board for approval; and attended the Kitsap Regional
Coordinating Council Transportation Policy Board meeting at Kitsap Transit where
discussions were held regarding transportation priorities for the next legislative session and
the Board approved $340,000 to the City of Port Orchard for the Bay Street Pedestrian
Pathway.
9· MAYOR'S REPORT
Mayor Matthes reported on the following:
• Read a letter from a Cedar Heights Junior High security officer thanking
Public Works Worker Marc Fournier for getting paperwork and permission from the
City, helping to relocate the public crosswalk signs, adding flag holders and
instruction signs for proper crossing.
• Read a letter from South Kitsap School District superintendent Bev Cheney,
commending Officer Andrew Brandon for his services at the South Kitsap School
district as the Security Resource Officer and thanking him for his dedication to the
students and being a great role model to the students.
10. REPORT OF DEPARTMENT DIRECfORS
Minutes of October 23, 2012
Page 6 of6
City Treasurer Martin reported the water meter realignment for 700 accounts is now
completed; and they have downloaded the new software for the Springbrook system, and
will be starting the migration into the database. He also noted that the online payment
system will be down for a period of time in November while the migration is going on.
City Attorney Jacoby requested a five minute Executive Session to discuss pending
litigation, and he does not expect any action to be taken; and following the adjournment of
the Council meeting, there will be a meeting to discuss union negotiations.
11. CITIZENS COMMENTS
Don Ryan, informed the Council that the Port Orchard Bay Street Association has been
working hard on the downtown market; this past weekend was the fall cleanup in
downtown Port Orchard; and they are working on the marina sign down by the foot ferry
and should be up shortly.
He also asked City Treasurer Martin if the City receives any portion of sales tax from car
rental agencies.
12. EXECUTIVE SESSION
At 8:32 p .m., Mayor Matthes recessed the meeting for a s-minute executive session
regarding litigation in accordance with RCW 42.3o.no(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.
At 8:37p.m. Mayor reconvened Council back into regular session .
13. ADJOURNMENT
~ayor Matthes adjourned the meeting .
. fL O{~
randy Rinearson, CMC, City Clerk