04/23/2013 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of April 23, 2013
1. CALL TO ORDER AND ROLL CALL
Mayor Tim Matthes called the meeting to order at 7:00p.m. Mayor Pro-Tem Fred Chang
and Councilmembers Jerry Childs, John Clauson, Rob Putaansuu, Carolyn Powers, Jim
Colebank, and Cindy Lucarelli, were present and constituted a quorum. City Clerk
Rinearson, Public Works Director Dorsey, Acting Development Director Bonsell,
Commander Marti, Deputy City Clerk Fernandez, and City Attorney Jacoby were also
present.
A. Pledge of Allegiance
Councilmember Colebank led the audience and Council in the Pledge of Allegiance.
2. CITIZENS COMMENT
Bev Catrell said she is concerned about the idea the Council has taken up about a potential
City Manager form of government. She doesn't find the logic in doubling the Mayor's salary
for a city manager; she doesn't see the savings in that. She doesn't feel Port Orchard should
be in a race to compete with Bremerton, Gig Harbor, or anybody else. This is a waste of
time, money, effort, and energy. ·
Gerry Harmon has concerns about a City Manager. During the study session the Council
mentioned having an open house. She feels it is not the best way to inform the public. She
would like to see an open public presentation given with a Q&A period at the end, so
everyone hears the same thing at the same time.
Neil Perrine, asked the Council to consider adopting an ordinance similar to what
Bremerton did regarding derelict buildings.
3· APPROVAL OF AGENDA
Councilmember Clauson MOVED and Councilmember Putaansuu seconded
the motion to add Universal Field Services, Inc. for Tremont Widening
Temporary Construction Easement Updates Agreement to Business Item 7G to
the Agenda. Upon vote, the motion passed unanimously.
Councilmember Putaansuu MOVED and Councilmember Chang seconded the
motion approving the Agenda, as amended. Upon vote, the motion passed
unanimously.
4· APPROVAL OF CONSENT AGENDA
A. Approval of Check Nos. 59497-59547 totaling $128,244.25
B. Approval of Public Event Applications
-Seagull Calling Festival & Wings Cook-Off
-South Kitsap High School Mock DUI
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Councilmember-Colebank MOVED and Councilmember Childs seconded the
motion approving the Consent Agenda. Upon vote, the motion passed
unanimously.
5· PRESENTATION
A. Chimes and Friends
Councilmember Lucarelli gave an overview of the Chimes & Lights Festival history;
introduced many vital volunteers who make the event a success, and showed a video
created by Northwoods Production.
6. PUBLIC HEARING
No Public Hearings were held.
7· BUSINESS ITEMS
A. Adoption of Resolution No. 008-13, Directing the Repayment to the
Recreation and Conservation Office Regarding the Blaclgack Wilderness
Trail Project
Acting Development Director Bonsell presented the staff report, noting this resolution
directs the City Treasurer to repay the Recreation and Conservation Office (RCO) in the
amount of $10,090.94.
The Recreation and Conservation Funding Board (RCFB) awarded funding to the City for
the Blackjack Creek/Mosquito Trail Connection, RCO #09-1167C, and a project agreement
was executed on August 11, 2010, for management and construction related expenses, with
the City subsequently embarking on the planning, right-of-way acquisition, development,
and construction of the Blackjack Creek Wilderness Trail.
A letter dated March 13, 2013, from Kaleen Cottingham, Director of the Recreation and
Conservation Office, terminated the grant Project Agreement and RCO' s funding obligation
based upon insufficient progress and ground disturbing activities requiring repayment of
grant funds.
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Staff briefed Council at its March 19, 2013, Work Study Session regarding the failure to
secure trail right-of-way and foliage clearing activities that took place for survey purposes.
The Council Finance Committee subsequently discussed the repayment in context of
appealing the RCO decision and settled on directing staff to bring forth a resolution
directing repayment.
Councilmember Putaansuu MOVED and Councilmember Powers seconded the
motion to adopt Resolution No. 008-13, authorizing the City Treasurer repay
$10,090.94 to the Recreation Conservation Office from the Cumulative Reserve
for Municipal Facilities Fund No. 302. Upon vote, the motion passed
unanimously.
B. Approval of April9, 2013, Council Meeting Minutes
Councilmember Powers watched the video and read the minutes. She would like to vote on
the minutes. There were no objections.
Councilmember Clauson MOVED and Councilmember Colebank seconded the
motion to approve the April 9, 2013, Council meeting minutes. Upon vote, the
motion passed unanimously.
C. Approval of Contract No. 042-13, Authorizing the Mayor to Execute an
Agreement with Ron Hemley Septic Installations, Inc. for the 2013
McCormick STEP Conversions
Public Works Director Dorsey presented the staff report, noting a Notice to
Bidders/Invitation to Bid was published on March 22, 2013. By April 5, 2013, the City of
Port Orchard received two (2) bids. The Base Bid was for sixty ( 6o) home conversions,
with add alternate bid for an additional twelve (12) homes. Upon review by City staff, it
was determined that Hemley Septic Installations, Inc. was the lowest responsible bidder
for sixty (6o) homes at $341,444.26 (applicable taxes included.) Given the 2013 Budget
limitation of $360,000, the project consists of sixty (6o) STEP conversions to be
accomplished within 2013.
A summary of bids received for the sixty ( 60) STEP conversions is as follows:
Ron Remley Septic Installations, Inc.
Northwest Cascade, Inc.
$341,444.26
$498,474.00
Note: All bids include applicable taxes, labor, equipment, material and fees.
Councilmember Putaansuu acknowledged Mr. Boltz and Mr. Dorsey from Public Works
for their efforts in educating the public on the process. It was a successful outreach.
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Councilmember Lucarelli MOVED and Councilmember Putaansuu seconded
the motion to approve Contract No. 042-13, thereby authorizing the Mayor to
execute a Contract with Ron Hemley Septic Installations, Inc. for the 2013
McCormick Woods STEP conversions in the amount not to exceed
$341,444.26 for sixty ( 6o) conversions. Upon vote, the motion passed
unanimously.
D. Approval of Contract No. 043-13, Authorizing the Mayor to Execute an
Agreement of Settlement and Release Between New Cingular Wireless and
the City of Port Orchard
City Attorney Jacoby presented the staff report, noting in 2010, customers of AT&T /New
Cingular Wireless filed a class action lawsuit against the company alleging the data
services purchased by customers were the sale of "internet access" as that term is defined
in the Federal Internet Tax Freedom Act, and therefore were not subject to state or local
taxation. As part of the settlement of the class action, New Cingular agreed to seek
reimbursement of the taxes paid to state and local entities and refund the amounts
collected to New Cingular's customers. In 2012, New Cingular sued 122 Washington cities,
including Port Orchard, seeking a refund of that portion of taxes collected and paid to local
governments that related to data services between November 2005 and September 2010.
New Cingular originally sought refunds for as-year period but has agreed to a settlement
based on a 3-year refund period. In addition, New Cingular has agreed to discount the
amount owed by ten percent. Many cities have reached similar settlements with New
Cingular. However, a number of cities are continuing to defend the lawsuit -this is
especially true of larger cities that are facing six figure refund claims. It is staffs opinion
that the cost of defending the lawsuit would exceed the proposed settlement amount and
therefore this settlement is in the best interests of the City.
Councilmember Chang MOVED and Councilmember Powers seconded the
motion to approve the settlement agreement and release between the City
and New Cingular Wireless regarding a tax refund claim and authorize the
Mayor to execute the same. Upon vote, the motion passed unanimously.
E. Confirmation of Appointment of Mr. Geoffrey Marti to Police Chief and
Approval of Contract No. 044-13, Authorizing the Mayor to Execute an
Employment Agreement for Chief of Police
Mayor Matthes presented the staff report, noting he is seeking Council's confirmation of the
appointment of Mr. Geoffrey Marti to the position of Police Chief, effective April24, 2013.
Councilmember Clauson MOVED and Councilmember Childs seconded the
motion to confirm Mayor Matthes' appointment of Mr. Geoffrey Marti to the
position of Police Chief, effective April 24, 2013 and authorize the Mayor to
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execute Contract No. 044-13, an employment agreement for Chief of Police.
Upon vote, the motion passed unanimously.
F. Confirmation of Appointment of Mr. Nicholas Bond to Development
Director
Mayor Matthes presented the staff report, noting he is seeking Council's confirmation of the
appointment of Mr. Nichols Bond to the position of Development Director, effective May
13,2013.
Councilmember Childs was a little dismayed by the process of the timing of the press
releases. He felt the press releases should come after the confirmation from Council.
Councilmember Putaansuu MOVED and Councilmember Clauson seconded
the motion to confirm Mayor Matthes' appointment of Mr. Nicholas Bond as
the City's Development Director, effective May 13, 2013. Upon vote, the motion
passed unanimously.
G. Approval of Contract No. 045-13, Authorizing the Mayor to Execute a
Contract with Universal Field Services, Inc. for Tremont Widening
Temporary Construction Easement Updates
Public Works Director Dorsey presented the staff report, noting as a function of keeping the
Tremont Street Widening Project "Ready to Go," whilst seeking constructio:q funding, the
City of Port Orchard is required to update the Temporary Construction Easements
previously obtained along the project corridor. As before, this activity will require a
negotiation process. Funding for this activity will come from remaining FHWA/PSRC
Right-of-Way Acquisition grant funding, but will require a 2013 Budget Amendment within
the budget year.
In response to Councilmember Clauson, Public Works Director Dorsey said there is no
estimate of what the easements might cost. There will be summaries, but as the normal
process they come before Council and are approved as part of warrants. The City has about
$400,000 remaining, and will spend maybe a tenth of that to go in and refresh the
easements for an additional five years.
Councilmember Powers MOVED and Councilmember Childs seconded the
motion to authorize the Mayor to execute Contract No. 045-13, with Universal
Field Services, Inc. in an amount not to exceed $12,000, for the Tremont
Street Widening Temporary Construction Easement updates. Upon vote, the
motion passed unanimously.
8. COMMITTEE REPORTS
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Councilmember Clauson reported the next Finance Committee meeting is scheduled for
May 10, 2013, at 7:30 a.m. at the Pancake House.
Councilmember Childs reported the Economic Development/Tourism Committee meeting
is scheduled for May 15, 3:30p.m. at City Hall. They will begin planning the 2013 Chimes &
Lights Festival.
Councilmember Putaansuu reported the Sewer Advisory Committee met last week, which
was very informational. An elaborate membrane system was installed ten years ago, and its
useful life is 8-10 years. When the plant was expanded, we thought it would serve out to the
Port of Bremerton. That may not be the case any longer. Replacing the membrane system
will be approximately $1 million, and staff is looking at what other alternatives exist to the
membrane system.
Councilmember Powers said the Public Properties Committee met on April 16, 2013.
Councilmember Chang said they discussed the Wi-Fi antennas that are coming to town
soon; got an update on Prospect Street; talked about Bremerton's new ordinance which will
be on next week's Work Study agenda; and had a discussion on the "A" boards in the sign
ordinance.
Councilmember Childs said the Waterfront Vision Committee had a meeting yesterday.
They had a great discussion about different possibilities on the waterfront and how to
overcome parking issues. There will be a ribbon cutting of the waterfront park expansion
and trail intersects. There will be one more meeting in June to plan an open house for the
public.
Councilmember Chang reported the Lodging Tax Advisory Committee is going to meet on
Tuesday, May 7, 2013.
Councilmember Chang reported he attended the PSRC Transportation Board meeting, but
no action was taken. He also attended the KRCC TransPol meeting, where discussion was
had on funding the Tremont Street project.
9· MAYOR'S REPORT
The Mayor Matthes reported on the following:
• There is still a week for the public to take the South Kitsap Recreational Survey. The
survey can be picked up at City Hall, and it is also online.
• On May 9, 2013, the City will host a workshop for citizens interested in running for
office in the 2013 elections.
10. REPORT OF DEPARTMENT DIRECfORS
Public Works Director Dorsey reported:
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• Tremont Street Widening plan is 100% complete. There is a meeting this Friday. We
received a letter of support from the Kitsap County Commissioners supporting our
request for $15 million. There might be a resolution supporting the Treasurer's cash
flow model coming forward to Council in the near future.
• Dekalb Street Pier had all five pin piles pass their refusal yesterday. It took an
additional 20 feet on four of them to do that. He had to issue a $19,000 change
order. Combined with a landscape irrigation piece, he is at his at the limit of his
change order authority. To keep the project moving, he requested a motion to have
additional change order authority to use the remaining funds in the state grant. This
is necessary because of the project deadlines set by the grant.
Councilmember Putaansuu MOVED and Councilmember Clauson seconded
the motion to acknowledge the $25,000 change order that Mark has brought
forward due to the project, and to authorize up to $46,ooo of the remaining
State grant funding to be expended to keep the project on track. Upon vote, the
motion passed unanimously.
• Bay Street Pedestrian Pathway, Segment 2 is done. There is some miscellaneous
work on Bay Street that he is coordinating with DOT. The existing curb and shoulder
are in bad condition and there is a drainage issue. He has money to remove the
existing curb. He is going to move the curb back and put some additional
landscaping and plants in there.
• Segment 5 footings are going to be poured tomorrow. They have the excavations and
base done for the remaining wall. As a part of the hydraulic project approval,
additional erosion BMP and some additional things the fisheries want done will cost
an additional $41,000. This will leave $6,ooo remaining in the state grant if we keep
the add alternate out of the scope of the project. If Council wishes to keep the east
bridge pier abutment in, an additional $5o,ooo-$6o,ooo will need to added from
REET.
Councilmember Clauson MOVED and Councilmember Colebank seconded the
motion to authorize the Public Works Director with a $41,000 change order
for the Pedestrian Path. Upon vote, the motion passed unanimously.
Councilmember Clauson MOVED and Councilmember Powers seconded the
motion to put the funding question for the bridge abutment into the Finance
Committee and ask them to come back with a recommendation. Upon vote, the
motion passed unanimously.
Councilmember Powers watched the April16, 2013, Council meeting and asked the Council
to speak directly into the microphones because it is very difficult to hear what is being said.
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Councilmember Powers invited citizens to attend the Council Committee meetings; she said
it is nice to see the community attending these meetings.
Acting Development Director Bonsell reported tonight would be his last meeting as Acting
Director. He personally thanked the Mayor for entrusting him to keep the ship afloat. He
got to know councilmembers and hopes to continue growing his relationships with them.
He also thanked the managers who have helped him get up to speed and learn what he
needed to know. He thanked the Mayor for allowing him to serve the citizens of Port
Orchard in the higher function.
Mayor Matthes thanked Acting Development Director Bonsell for stepping up when he
asked him to. He feels he did a remarkable job and saw huge strides at each meeting. The
Mayor said he exceeded his expectations, and thanked him for his time and effort.
City Clerk Rinearson reported that the Port of Bremerton is firm in committing $5,500 to
the foot ferry service contract and the City of Bremerton is firm in committing $6,500. She
is seeking direction from Council on how to fund the shortfall. At the previous Work Study,
there was direction to seek the additional $1,500 through Lodging Tax. She needs to know
how to fund the additional $1,200.
Councilmember Clauson announced a potential conflict as he is Kitsap Transit's Executive
Director; and recused himself from the meeting.
Councilmember Powers is troubled about these items not being added to the agenda at the
beginning of the meeting.
In response to Councilmember Powers, Councilmember Chang said it is necessary to take
action tonight in order to petition the Lodging Tax Advisory Committee and get a contract
prepared for Council consideration on May 14, 2013.
In response to Councilmember Lucarelli, City Clerk Rinearson said the City will be paying
approximately $9,206.
Don Ryan asked the Council to consider opening up the entire Lodging Tax carry over to
all original applicants.
Brian McKinnon asked the Council to embrace the notion of increasing foot ferry service.
Jerry McDonald said there may be available funding from the sports teams in Seattle for
the ferries.
Bek Ashby clarified that the original $1,500 discussed from POBSA was for marketing. A
separate committee today agreed that POBSA could contribute $1,500 for the service. If
there is no service, there would be nothing to market. The executive committee was able to
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solicit donations from downtown merchants to cover the shortfall on the condition that it
would be the last money in and the first money out if it was not needed.
Councilmember Putaansuu cautioned signing a contract on a "maybe" and fund what the
contract says. All of the work that has been done is projections, and if they are not true
projections, then somebody is going to have to step up later. It is good to know that money
is there. He would rather not cut service at the tail end of this because we ran out of money.
Councilmember Powers is voting against the motion. She is not satisfied with the way this
whole thing has been handled.
Councilmember Childs MOVED and Councilmember Putaansuu seconded the
motion to authorize the City Clerk to petition lodging tax to cover the
additional $3,000 for foot ferry service. Upon vote, the motion passed with
five affirmative votes and one dissenting vote. Councilmember Powers cast
the dissenting vote. Councilmember Clauson recused himself.
Councilmember Clauson returned to the meeting at 9:15p.m.
Commander Marti thanked the Mayor for putting him forward for the position of Police
Chief. He thanked each Councilmember for their support and for their vote for the
confirmation. It means a lot to him. He has been in law enforcement for 33-34 years. Port
Orchard is probably going to be the last place he is going to work. He wants to continue to
keep the trust with the community and transparency of the department and the high degree
of accountability.
11. CITIZENS COMMENTS
Alexis McKinnon thanked Councilmember Lucarelli for inviting her kids to make a
comment on Chimes & Lights. It is important to bring families into the City of Port
Orchard. The new walkway is so exciting. She is disappointed about the Blackjack Creek
Trail. Those kinds of trails bring families together. She hopes City Council will push ahead
with trying to find a way to build that trail.
Gerry Harmon said money is a real issue with our town. One of the things that has her
concerned is the talk of the city manager. When Mayor Coppola first brought this topic up
four years ago, it was said that it might cost around $120K for the salary, but then former
Councilmember Olin replied it would be another $6o,ooo-$7o,ooo in benefits. She has
heard that benefits range from 30% to 45% of the salary. If 30% is figured, a manager
making $120,000 would come in at $156,ooo with benefits, and a manager earning
$150,000 would cost the City $195,000. If the 45% range is used for benefits, that would
cost over $200,000. The City doesn't have money to do Blackjack Creek Trail, is only paving
half of Cline, sidewalks are in disrepair, we don't have enough money for the bridge
abutment, want to continue with the Bay Street Path, but we don't have money for that, but
Minutes of April23, 2013
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the Council is considering spending $200,000 a year to do the same job the Mayor has been
doing. She is also upset that the word "average" is being used. The man at the Work Study
session said city managers average about six years. But that means a lot of city managers
last two years and then move on and that is less than what a mayor does. This seems like a
bottomless pit for our money to go in when we don't have the money to do what you really
want to do for this town.
Gil Michael thanked the Council for petitioning LTAC for $3,000 needed for the foot
ferries. He would like to know when they can begin marketing the ferry. City Clerk
Rinearson said the contract will come before Council on May 14, 2013.
Don Ryan reiterated his earlier comments about Council considering opening the
remainder of the carry over funds from the Hotel-Motel tax to distribute to other
organizations who could make good use of the funds.
Jerry McDonald said the foot ferry is marketing material for both Bremerton and Port
Orchard. Washington State Ferries is the number one tourist attraction in Washington
State. The more we market our communities, the more our sales taxes will benefit. It is
going to take a community effort. He would recommend several Port Orchard City
Councilmembers get together with Bremerton City Councilmembers and start working
together.
Kathy Michael thanked Councilmember Powers for her comments about not being to
hear discussions at the Work Study session. It is hard to hear those whose backs are turned
towards the audience. She encouraged using a U -shape configuration of the tables to help
voices project towards the audience. She understands it is the Council's meeting, but the
citizens need to be able to hear the discussions.
12. EXECUTIVE SESSION
No executive sessions were held.
13. ADJOURNMENT
At 9:2; p ~or Matthes adjourned the meeting.
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