11/12/2013 - Regular - MinutesCity of Port Orchard
Council Meeting Minutes
Regular Meeting of November 12, 2013
1. CALLTOORDERANDROLLCALL
Mayor Tim Matthes called the meeting to order at 7:00 p.m. Mayor Pro-Tern Fred Chang
and Councilmembers Jerry Childs, John Clauson, Carolyn Powers, Rob Putaansuu, Cindy
Lucarelli, and Jeff Cartwright were present and constituted a quorum. City Clerk Rinearson,
Public Works Director Dorsey, City Treasurer Martin, Development Director Bond, Human
Resources Coordinator Howard, Deputy City Clerk Fernandez, and City Attorney Jacoby
were also present.
A. Pledge of Allegiance
John Powers led the audience and Council in the Pledge of Allegiance.
Mayor Matthes thanked and congratulated everyone who participated in the recent election
for City Council and Proposition 1. He said it was time for the Council and Mayor to come
together to make Port Orchard a better place for its citizens, families, visitors, and
businesses. He would like to see a public process considered for allowing the public to vote
on whether or not the City should become a Code City.
2. CITIZENS COMMENT
Christine Stansbery gave a report on the revised Lodging Tax Committee
recommendations, which will be discussed at the November Work Study Session.
Patty Graf-Hoke thanked the City of Port Orchard and LTAC for reconsidering the
recommendations on the hotel-motel tax allocations.
Mary Phelps spoke on behalf of herself and two other residents who live on Hull Avenue.
Something needs to be done about the cars speeding on the road.
Elissa Whittleton reiterated that she wished the City Council would have their committee
meetings in the Council Chambers.
KT Arthur said the new traffic revision on Bay Street by the library negatively affects
business owners on the east side of Bay Street. She said the City did not consult the public
for feedback on the revision.
3.APPROVALOFAGENDA
Councilmember Putaansuu MOVED and Councilmember Cartwright seconded
the motion approving the Agenda.
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Page 2 of12
Councilmember Clauson MOVED and Councilmember Cartwright seconded
the motion to amend the Agenda by moving the Adoption of Resolution No.
026-13, Sponsoring Kitsap Transit's Application to the Association of
Washington Cities Workers' Compensation Group Retro Program from the
consent agenda to the business items. Upon vote, the motion passed
unanimously.
Upon vote, the main motion to approve the Agenda, as amended passed
unanimously.
Councilmember Chang MOVED and Councilmember Clauson seconded the
motion to excuse Councilmember Powers from the November 26, 2013,
Council meeting. Upon vote, the motion passed unanimously.
4· APPROVAL OF CONSENT AGENDA
A. Approval of Checks Nos. 60664 through 60775 totaling $401,501.57, October's
Payroll Checks Nos. 145482 through 145529 totaling $548,119.72, and Treasurer's
Checkbook in the amount of $2,465,799.94
B. Setting the November 19,2013, Work Study Session Meeting
C. Approval of October 15, 2013, Work Study Session Meeting Minutes
D. Approval of October 22, 2013, Council Meeting Minutes
E. Adoption of Ordinance No. 021-13, Ratifying the City Council's Approval and
Authorization for the Mayor to Sign a Development Agreement between the City and
The Sinclair, LLC
F. }£option of Resolution No. 026 13, Sponsoring Kitsap Transit's :l\pplieation to the
.Association ofVlashington Cities VlofkeFs' Compensation GFoup Retm PFogFam
G. Approval of Contract No. 086-13, Authorizing the Mayor to Execute a Grant
Agreement with the Department of Ecology for the FY2013-2015 Stormwater
Capacity Grant Program ·
H. Approval of Contract No. 087-13, Authorizing the Mayor to Execute an Interlocal
Agreement to Modify Water Retail Service Area with West Sound Utility District
I. Acceptance of a Cash Award to the Police Department from Wal-Mart
Councilmember Clauson MOVED and Councilmember Childs seconded the
motion approving the Consent Agenda, as amended. Upon vote, the motion
passed unanimously.
5· PRESENTATION
A. KEDA Third Quarter Update & Live+Work+PlayVideo
Mr. John Powers, Executive Director of KEDA, gave a third quarter report on the City of
Port Orchard.
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Councilmember Childs introduced the City of Port Orchard Live+Work+Play video. He
thanked John Powers, Hal Calbom, Brett Renville, and the Economic Development &
Tourism Committee for their work on the video.
Hal Calbom thanked the City Council and John Powers for their support. He suggested
putting the video on our website and sharing copies with constituent businesses.
Councilmember Lucarelli said they plan to make the video available to POBSA, the
Chamber of Commerce, non-profits, and other government entities.
Councilmember Childs left the meeting at 7:45 p.m.
6. PUBLIC HEARING
A. Recreational Marijuana Land Use Zoning
Development Director Bond presented the staff report, noting City staff has worked with
the city attorney over the past few months to develop land use regulations concerning
recreation marijuana production, processing, and retail sales in response to the passage of
Initiative 502. Draft regulations have been presented for discussion in previous Work Study
meetings and have been further refined. The previously presented draft regulations defined
relevant terms, specified that marijuana uses would be prohibited in the downtown overlay
district, and identified the zoning districts in which each type of marijuana use is permitted.
The ordinance contains the proposals as outlined above and previously presented, but has a
few other changes. This new draft is for "interim" land use regulations, meaning that the
regulations will only be in place for six months (unless the City Council decides to extend
the interim regulations for an additional six months). This will give the City time to see if
further changes are required once the State Liquor Control Board's rules are in place and
State licenses have been issued. Also, the City needs to submit its proposal to the
Department of Commerce for review and comment before adopting permanent changes to
its development regulations. It is likely that these regulations will come back to Council
with a comment letter from the Department of Commerce in a few months, at which time
they can be made permanent. Next, the draft regulations include an addition, Chapter
16.39. This new chapter is recommended because of discussions between the city attorney
and colleagues, including AWC's land use attorney. This chapter creates findings and
purpose and applicability sections, incorporates a number of the State WACs into the
POMC, creates a provision for indemnification, and adopts the State rules by reference.
Mayor Matthes opened the Public Hearing at 7:47 p.m.
Tim Sypowicz said the proposed locations are in risky spots. He said trying to find a spot
that an owner will lease is difficult. One of the biggest concerns is the regards for safety; the
Minutes of November 12, 2013
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proposed locations are dangerous or out of the way. These shops are robbed a lot. He said
he was not familiar with the new map, and will be checking out portions on Bethel
tomorrow.
Mary Phelps asked if there were any marijuana shops in the City of Port Orchard.
There being no further testimony, Mayor Matthes closed the Public Hearing at 7:55p.m.
7· BUSINESS ITEMS
A. Adoption of Resolution No. 026-13, Sponsoring Kitsap Transit's Application
to the Association of Washington Cities Workers' Compensation Group Retro
Program
Councilmember Clauson announced a potential conflict, as he is Kitsap Transit employee;
and recused himself from the meeting.
Councilmember Cartwright announced a potential conflict, as he is a Kitsap Transit
employee; and recused himself from the meeting.
Councilmembers Clauson and Cartwright left the meeting at 7:56 p.m.
Human Resources Coordinator Howard presented the staff report, noting Kitsap Transit
has an opportunity to enroll in the Association of Washington Cities (AWC) Workers'
Compensation Group Retrospective Program. Although Kitsap Transit is already a member
of AWC, the Workers' Compensation Group Retrospective Program is a separate legal
entity. As part of their application to enroll, Kitsap Transit must have a resolution of
sponsorship from a member City. Port Orchard is a member City in this program.
Councilmember Putaansuu MOVED and Councilmember Chang seconded the
motion to Resolution No. 026-13, sponsoring Kitsap Transit's application to
enroll in the Association of Washington Cities Workers' Compensation Group
Retrospective Program. Upon vote, the motion passed unanimously.
Councilmembers Clauson and Cartwright returned to the meeting at 7:59 p.m.
B. Adoption of Ordinance No. 022-13, Regarding Changes to Land Use Code
Relating to Recreational Marijuana
City Attorney Jacoby said starting on Monday, November 18, 2013, the Liquor Control
Board will be accepting license applications for production, processing, and retail facilities.
The application period will be open for 30 days until the middle of December. The Board
will take two to four months to review the applications and will begin issuing licenses
starting in March or April of next year. They will consider the jurisdiction's zoning
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regulations and will notify jurisdictions of potential locations. He also said the Council can
choose to adopt a moratorium or ban marijuana altogether; however, the City would likely
be sued if that was done. He also clarified this ordinance relates only to recreational
marijuana, not medical marijuana.
In response to Councilmember Clauson, City Attorney Jacoby said the Federal Government
and the Department of Justice said they have series of enforcement priorities. They wanted
regulations developed that would ensure marijuana does not get in the hands of minors,
that people do not drive while under the influence, and that revenues do not get in the
hands of drug cartels. They concluded that if a state adopted these types of regulations, that
the Department of Justice would use its discretion to defer to the states to be responsible
for reinforcement of marijuana laws. The State laws address the Federal Government's
requirements. The Federal Government will let this go forward, but they reserve the right to
come in if things go badly.
Councilmember Clauson said he feels he is not violating his oath. He thinks this is a land
use issue to decide where businesses will be allowed.
In response to Councilmember Powers, City Attorney Jacoby said the decision of whether to
allow businesses is in the hands of the Liquor Control Board. The City will have an
opportunity to comment on marijuana licenses, but the Board has the ultimate decision in
issuing the license. If the City does not take action, the Board will approve without our
regulations, such as not allowing it in the Downtown Overlay District.
Councilmember Putaansuu felt there were reasonably safe, high traffic areas on Bethel that
would not be considered as back alley locations.
Councilmember Chang confirmed that the blacked-out areas on the map were based on the
State regulations with the exception of the Downtown Overlay District. He discussed the
way that the City voted on I -502. If the State and Federal laws are not in alignment, he
favors the State. He is uncomfortable supporting the measure as proposed.
Councilmember Powers said she will support the proposed ordinance, and said the Council
has been criticized by constituents for holding a public hearing and voting the same night.
She said there was not a lot of public comment on this issue tonight.
Councilmember Cartwright does not want the marijuana businesses to be located
downtown or around children. He feels the City's best course of action is laid out in front of
them at this point.
Councilmember Putaansuu MOVED and Councilmember Chang seconded the
motion to approve Ordinance 022-13 adopting interim land use regulations
concerning the production, processing, and retail sale of recreational
marijuana and amending Title 16 of the Port Orchard Municipal Code by
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Page 6 of12
amending chapters 16.08 "Definitions," 16.20 "Property-Specific Designations
-Overlay Districts," 16.30 "General Land Use Requirements -Tables," and
adding a new chapter 16.39 "Recreational Marijuana." Upon vote, the motion
passed unanimously.
C. Adoption of Ordinance No. 023-13, Amending POMC Chapter 5.12 Business
Licenses in Response to State and Federal Actions Relating to Marijuana
Development Director Bond presented the staff report, noting the City attorney has
recommended minor changes to the City's business license regulations, POMC Chapter
5.12, to be adopted in conjunction with the City's proposed new interim recreational
marijuana regulations. The proposed changes to the business license regulations
distinguish between recreational marijuana and medical marijuana uses. A City business
license will be issued for recreational marijuana uses that fully comply with state and local
law. However, until the state legislature adopts a regulatory scheme for medical marijuana
that is satisfactory to the U.S. Department of Justice, the City will continue to deny business
licenses for medical marijuana uses.
Councilmember Chang MOVED and Councilmember Cartwright seconded the
motion to adopt Ordinance 023-13 amending Port Orchard Municipal Code
chapter 5.12 "Business Licenses" in response to state and federal actions
relating to marijuana. Upon vote, the motion passed with five affirmative
votes and one dissenting vote. Councilmember Clauson cast the dissenting
vote.
D. Adoption of Ordinance No. 025-13, Amending POMC Chapter 10.12 and
Establishing Regulations and Fees Related to Parking, Stopping, or Standing in
Certain Areas of the City
Public Works Director Dorsey presented the staff report, noting as a housekeeping measure
and working with Parking Enforcement staff, the City's Public Works Department
continues to annually inventory existing signage to compile corrections, revisions and/ or
modifications to the current Port Orchard Municipal Code (POMC), Chapter 10.12.
In response to Councilmember Powers, Public Works Director Dorsey said if a park is
under lease operation, language can be added to the lease to allow parking after dusk. The
change is to give the Police Department a tool to deal with drug activity at Paul Powers
Park.
City Attorney Jacoby said a clause could be added that states "limited from dawn to dusk
parking unless otherwise authorized."
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In response to Councilmember Clauson, Public Works Director Dorsey said the clause for
street sweeping is still in another part of the Port Orchard Municipal Code and has not been
removed.
In response to Councilmember Chang, Public Works Director Dorsey said the parking
changes near the DeKalb Pier only affects two spaces.
Councilmember Putaansuu MOVED and Councilmember Powers seconded the
motion to adopt Ordinance No. 025-13, thereby updating POMC Chapter 10.12,
regarding Parking, Stopping or Standing in Certain Areas of the City, with
final form approved by the City Attorney to include the text "unless otherwise
authorized." Upon vote, the motion passed unanimously.
E. Adoption of Resolution No. 027-13, Setting the Amount of Property Taxes to
be Levied for the Year 2014 Pursuant to RCW 84.55.120
City Treasurer Martin presented the staff report, noting on October 22, 2013, a public
hearing on revenue sources for the current expense (general fund) budget was held. The
hearing included a discussion on property tax being considered to be collected in 2014.
Below is a comparison of next year's levy amount to this year's levy amount.
2013levy $2,202,693 2014levy $2,244,660
1% increase 1% increase -0-
New construction 47,840 New construction -0-
Annexation 56,344 Annexation -0-
Total Taxes 2,202,693 Total Taxes $2,244,660
Refunds Refunds -0-
Total2013 $2,306,877 Total2014 $2,244,660
State law (RCW 84.52.043) establishes maximum levy rates for the various types of taxing
districts (the state, counties, cities, towns, fire districts, library districts, and the like). Total
2014 levy amount is estimated to be $2,244,660 based upon an estimated maximum $1.69
per thousand of assessed valuation. 2014 levy annexation amount is estimated until the
final levy calculation is completed by the Kitsap County Assessor.
Projected 2014 levy rate of $1.69 calculates a tax of $338.oo on a house assessed value of
$200,000.
Councilmember Putaansuu said he hopes the economy is headed in the right direction.
Councilmember Clauson said the City will be collecting less in property tax next year. He
asked the Council to keep this in mind as they discuss the budget at next week's Work
Study.
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Page 8 of12
In response to Councilmember Powers, City Treasurer Martin said we are at our statutory
maximum amount that we can collect under the $1.69, so new construction and annexation
revenues could not be included.
In response to Councilmember Chang, City Treasurer Martin said our levy rate has gone
down. In 2010, we were at $2.05 and it has been dropping. He said the resolution is a form
the Department of Revenue requires.
Councilmember Powers MOVED and Councilmember Putaansuu seconded the
motion to adopt Resolution No.027-13, to set the 2014 property tax levy and
the amount of property taxes to be raised for the budget year of 2014. Upon
vote, the motion passed with five affirmative votes and one dissenting vote.
Councilmember Lucarelli cast the dissenting vote.
F. Approval of Contract No. 088-13, Authorizing the Mayor to Execute an
Agreement with Universal Field Services, Inc. for the 2013-14 Real Estate
Acquisition Services Bay Street Pedestrian Pathway Project
Public Works Director Dorsey presented the staff report, noting on August 2, 2013, the City
of Port Orchard Public Works Department issued a Statement of Qualification (SOQ)
request for the 2013-2014 Real Estate Acquisition Services for the Bay Street Pedestrian
Pathway Project. On August 16, 2013, the City received two SOQs, that being from
Universal Field Services, Inc. and Tierra Right-of-Way. An interview panel was established
and consultant interviews were performed on September 10, 2013, whereby Universal Field
Services, Inc. was ultimately selected. A subsequent scope and budget development meeting
between the City and the selected consultant was held on October 16, 2013.
He noted the fiscal impact: There is $490,000 budgeted in the 2014 budget, where 86.5% is
federal funding, and 13.5% is City match. That leaves approximately $282,000 for actual
acquisitions. Once the City receives the Administrative Offer Summary (AOS), the City will
be able to go back in the 2014-15 funding cycle and will request additional funds for this
piece as needed. Until the AOS is complete, the City does not know how far the $282,000
will go.
In response to Councilmember Chang, Public Works Director Dorsey said the parcels on
the timeline are fee simple, easements, and temporary construction easements. Once the
appraisals are done, then the AOS will be prepared from that.
In response to Councilmember Chang, Councilmember Putaansuu said the function of this
agreement is to make sure the property owners are contacted about the City potentially
acquiring their property.
Councilmember Powers MOVED and Councilmember Putaansuu seconded the
motion to authorize the Mayor to execute Contract No. 088-13 with Universal
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Page 9 of12
Field Services, Inc. in an amount not to exceed $208,325.00 for the 2013-2014
Real Estate Acquisition Services for the Bay Street Pedestrian Pathway
Project. Upon vote, the motion passed unanimously.
G. Approval of Contract No. 089-13, Authorizing the Mayor to Execute an
Agreement with University of Washington for Professional Planning Services
Development Director Bond presented the staff report, noting at the previous two Work
Study meetings, the City Council discussed hiring Master of Urban Planning students from
the University of Washington to conduct planning activities and community outreach for
the City. At the last meeting, it was decided that the final contract should include a scope of
work for a waterfront planning process and report. The contract includes such a scope,
includes project and payment schedules, and costs $17,705.00.
Councilmember Clauson expressed his continuing concern of doing the waterfront plan
instead of the comprehensive plan.
In response to Councilmember Cartwright, Development Director Bond said it is possible to
change the project and approve the comprehensive plan project.
In response to Councilmember Lucarelli, Development Director Bond said the issues that
Councilmember Childs wants to look at would not be included in the plan, because the
identified issues revolve around property ownership.
Councilmember Clauson urged the Council to consider doing the comprehensive plan first.
The Finance Committee met with each department head, and the Department of
Community Development has staffing issues that will make the year challenging. Having
this kind of support to develop the comprehensive plan is going to help the department.
Councilmember Putaansuu said we all want a waterfront plan, but the comprehensive plan
is required. He supports doing the comprehensive plan.
Councilmember Chang said he could see both sides. He thought the waterfront plan would
be great, but the scope is not what he expected. He would like the scope to be refined when
it is worked on in 2015.
Councilmember Clauson MOVED and Councilmember Powers seconded the
motion to approve the consultant agreement between the City and the
University of Washington as presented. Upon vote, the motion failed
unanimously.
Councilmember Putaansuu MOVED and Councilmember Clauson seconded
the motion to approve the consultant agreement between the City and the
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Page 10 of12
University of Washington for the scope of the comprehensive plan that was
presented as Exhibit A with minor adjustments to the consultant agreement.
Councilmember Powers repeated that she felt they should go with the comprehensive plan,
but urged the Waterfront Plan Committee to keep active and do what they can.
In response to Councilmember Clauson, Development Director Bond said the group could
work on another project in fall 2014 or winter 2015.
Upon vote, the motion passed unanimously.
H. Approval of Contract No. 090-13, Authorizing the Mayor to Execute an
Employment Agreement with Tarrell Decker for Municipal Court Judge
City Clerk Rinearson presented the staff report, noting pursuant to POMC 2.52.030, the
Mayor appoints the Municipal Court Judge to a four-year term. RCW 3.50.040 also states
that the Council will have confirmation power and that the appointment shall be made on
or before December tst of the year preceding the year in which the term will commence.
Judge Tarrell Decker has completed her third full term with the City and based upon review
of her service and her agreement to serve, the Mayor is recommending confirmation of
Judge Tarrell S. Decker to another four-year term.
The Judge requested a salary increase from $79,290 to $85,000. The Judge's request
makes her salary as a .6 FfE municipal court judge commensurate with a .6 FfE district
court judge, as her duties, responsibilities, and requirements are the same as a district court
judge. Effective September 1, 2013, the State's Citizens' Commission on Salaries for Elected
Officials increased the District Court Judges' salaries. The salary for a .6 FfE district court
judge is now $86,726 and effective September 1, 2014, it will be $89,328.
Councilmember Powers said she holds Judge Decker in high esteem. The City has been
fortunate to have a person like her to be our judge.
Councilmember Clauson echoed Councilmember Powers' comments. He feels having her as
the Municipal Judge has made a difference in the quality of the Court and the whole
operation. When approached about a proposal to consider using home detention instead of
jail time, she was receptive to the idea and will see how it works.
Mayor Matthes said that aside from cost of living increases, Judge Decker has never
received a salary increase while with the City.
Councilmember Clauson MOVED and Councilmember Lucarelli seconded the
motion to approve Contract No. 090-13, authorizing the Mayor to execute an
employment agreement with Tarrell S. Decker for Municipal Court Judge for a
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Page 11 of12
four-year term commencing January 1, 2014, and ending December 31, 2017.
Upon vote, the motion passed unanimously.
8. COMMITIEE REPORTS
Councilmember Clauson reported the Finance Committee met today at 5:30 p.m. and they
will be presenting the budget at next week's Work Study.
Councilmember Lucarelli announced the Chimes & Lights Committee will meet tomorrow
at 3:30 p.m. and the ED /Tourism Committee meeting will follow at 4:00 p.m. She said the
Festival of Chimes & Lights schedule is complete, and they are working on advertising in the
Port Orchard Independent jacket. The event is on December 7, 2013.
Councilmember Putaansuu announced the Utility Committee will meet November 15, 2013
and the Sewer Advisory Committee will meet on November 20, 2013.
Councilmember Powers reported the Public Properties Committee met this morning and
they discussed the following items: a solution for the parking issue for Ron Ryder's
business; VanZee Park lease revisions; tree removal vs. moving street signs; and keeping
Lundberg Park as parkland in perpetuity. The Committee would like an update on the
South Kitsap Community Center.
Councilmember Chang reported the Lodging Tax Advisory Committee met to discuss
funding Visit Kitsap. He encouraged the Council to read the memo that was distributed by
Chris Stansbery, representative on the Committee.
9· MAYOR'S REPORT
The Mayor Matthes reported on the following:
• The next Work Study is November 19, 2013
• The next Town Hall is December 12, 2013 at 6:30p.m.
• He was honored to represent the City at the Veterans Day ceremony at the
Fairgrounds yesterday. There were 3,000 people in attendance.
• He attended the memorial service for Mr. John Bud Hawk, a World War II hero and
a Congressional Medal of Honor recipient. He passed away on November 4, 2013 and
he will truly be missed.
• The next Roger Brooks webinar is Monday, November 18, 2013 at 4:00 p.m.
10. REPORT OF DEPARTMENT DIRECTORS
There were no reports from the Department Directors.
11. CITIZENS COMMENTS
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Page 12 of12
Nick Whittleton thanked the council for listening to the public.
Eric Gonnason observed the condition of downtown. The downtown corridor is the heart
and soul of the City. It is neglected and it is the lowest priority item for the City. He
commented on the video that was presented tonight. He did not see any video coverage of
downtown.
Elissa Whittleton thanked the Council for prioritizing the comprehensive plan.
Councilmember Chang reported on the first Annual Chocolate Festival this last weekend.
12. EXECUTIVE SESSION
No executive session was held.
13. ADJOURNMENT
r Matthes adjourned the meeting.
~~~/{!f#~
Timothy C. M:atthes, Mayor