01/19/2021 - Work Study - Minutesa
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City of Port Orchard
Council Meeting Minutes
Work Study Session Meeting of January 19, 2021
CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:30 p.m.
Roll call was taken by the Deputy City Clerk as follows:
Mayor Pro-Tem Ashby
Councilmember Chang
Councilmember Clauson
Councilmember Cucciardi
Councilmember Diener
Councilmember Lucarelli
Councilmember Rosapepe
Mayor Putaansuu
Present via Remote Access
Present via Remote Access
Present via Remote Access
Present via Remote Access
Present via Remote Access
Late Arrival via Remote Access
Present via Remote Access
Present via Remote Access
Staff present via Remote Access: Community Development Director Bond, Public Works Director
Dorsey, Assistant City Engineer Hammer, Finance Director Croker, Land Use Attorney Robertson, and
Deputy City Clerk Floyd.
Mayor Putaansuu said Pursuant to the Governor's "Stay Home - Stay Safe" Order, the City will
conduct the meeting through Zoom.
Pledge of Allegiance
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
1. Impact Fee Ordinance —Traffic Impact Fee Adjustment
Development Director Bond noted the Impact Fee Ordinance has been held up while trying to finalize
the McCormick Communities Development Agreement for Transportation. We have been working
on this ordinance since late 2019. This ordinance is the first update to the Impact Fee Ordinance
since its inception in 2015. In 2015, the City adopted Traffic Impact Fees for the first time, but the
City has always had park and school impact fees, which we are not proposing to change. Back in 2015
when we adopted our Impact Fee Ordinance, we initially did a traffic impact fee study which then
came back with a recommendation of $4,000 per peak PM trip. We were just coming out of the
recession and comparing ourselves to what development costs were in other jurisdictions, there was
a desire to try to lower that fee to be more in line with our neighbors. Some of the projects that were
the basis of that study were removed to lower the total traffic improvement program costs.
Minutes of January 19, 2021
Page 2 of 4
Now, 5 years later, the costs of projects have come up and there are several projects not eligible for
impact fee expenditures, as they are not part of our impact fee study. We employed TSI who is our
traffic consultant to develop a new traffic impact fee study. We added a lot of those projects back
into the fee calculations including, Fireweed, Sidney Avenue south of Tremont, and Melcher on the
west side of Port Orchard Boulevard. There are several areas of the City that we have substandard
roads and do not have the capacity to support development. In addition, the Tremont project came
in above our estimates from 2015.
Finally, the Bethel Sedgwick corridor study was developed. In 2015, we had rough estimates, and
after identifying a phasing plan and figuring out other needs and constraints, the study came back
significantly more expensive for all 5 phases of that development. With this, the current impact fee
study came back with a recommendation of $4,943 per peak PM trip.
Discussion was held regarding the current study, calculations of the grants, ordinance details, old
impact fees, project name descriptions, cost sharing, unfunded commitment, tying fees to the CPIU,
and a public hearing.
Council Direction: Council directed staff to hold a public hearing on this topic during the February 9,
2021, City Council meeting.
2. McCormick Communities Development Agreement for Transportation
Development Director Bond said this is a project they have been working on for over a year. We
managed to reach an agreement between 3 parties: McCormick Land Company (formerly GEM1),
McCormick Communities, and the City of Port Orchard. He also explained the background on the old
agreement, noting in 2005, Kitsap County entered into a development agreement with GEM1. In
2009/2010, the City annexed this area and assumed the County's position on the agreement. This
has been challenging due to having to administer two separate traffic impact fee areas. The existing
agreement includes a reimbursement that gets paid to McCormick Land Company for projects that
were built around 10 or 12 years ago. The Finance department is currently administering a complex
reimbursement program under the old County agreement. He noted the old agreement is very
cumbersome and spoke to capacity and development. Lastly, the City of Port Orchard did not annex
all the transportation projects that are envisioned in the existing agreement. Some of the projects
remain in the County.
There was a desire from the developer and the City to update the agreement and streamline our
impact fee program, but also to focus on projects that our modeling shows are needed and to get
them built as efficiently as possible.
Discussion was held regarding details of the new agreement which included more flexibility, 20-year
term limit, reimbursements, projects to be built, impact fee credit to the developer, better quality
exhibits, liability and hold harmless, residential, and commercial trips, project and right-of-way
acquisition schedules, maximum project cost, and reimbursement of contract execution.
Minutes of January 19, 2021
Page 3 of 4
Mayor Putaansuu noted this item will be on the February 9t" Council agenda.
Council Direction: No direction was given to staff.
3. Transportation Update
Assistant City Engineer Hammer shared a video by AWC 'Cities 101-Street and City Transportation
System'. Additionally, he spoke to a presentation titled 'Transportation Update 2021-2022
Workplan" which included discussion on City roadway network, planning tools, 2020 committee
work, challenges, 2021-2022 work plan, and transportation funding analysis.
Discussion was held regarding transportation and comprehensive plans, preservation, and House
Transportation committee's proposal regarding increase in gas tax.
Council Direction: No direction was given to staff.
4. Water & Sewer Credit Discussion
Mayor Putaansuu noted it is important to remember that we cannot pay developers to build our
capital projects directly. If someone builds a large project for us, they will get credit for the excess
capacity they create in our system.
Public Works Director Dorsey said most cities tend to lean on latecomers' agreements as their model.
This is available in our City for the developers who want to employ a latecomer's agreement model,
but this provides another alternative.
Finance Director Crocker shared a presentation and noted the overall concept is to provide a credit
for when a developer is providing the City over and above capacity that they need. Additionally, he
spoke to sewer CFC [Capital Facility Charge] and credit examples.
Additional discussion was held regarding credits and capacity, development, credit scenarios, ERU's,
anomalies, implementation, and code language.
Council Direction: No direction was given.
NEW: GOOD OF THE ORDER
Committee Meeting Schedule
Mayor Putaansuu said there was discussion about shuffling around committee meeting dates,
specifically for the Utilities and Finance Committees.
After a brief discussion, it was agreed that the Utilities Committee will meet the 2nd Tuesday of each
month, and the Finance Committee will meet with 3rd Tuesday of each month.
Minutes of January 19, 2021
Page 4 of 4
Kitsap Bank Property and Appraisal
Mayor Putaansuu noted we signed the Letter of Intent and he reached out to the Public Facilities
District (PFD). Public Works is now procuring an appraisal on the Kitsap Bank property which will take
6 weeks and $4,500. It is a reimbursable expense through the PFD, but our real estate acquisition is
not until after design. We could get reimbursed now, but we would get caught short at the end of
the design period by that same $4,500. He wants to bring a contract forward to get this process
moving, but it may be cleaner for us to pay for the appraisal ourselves.
After discussion, it was agreed the City would pay for the appraisal.
Social Media Posts
Councilmember Chang spoke to a post he made on social media about a local business and said it
was made on his personal page and did not reflect the Council as a whole. He apologized and noted
it was his own lack of judgement and his alone.
Councilmember Ashby explained that it does not make any difference if you post under your personal
name, we are City Council people 24 hours a day, 7 days a week. We do not get to do public
comments as we are Council people, and our comments represent all of us.
Councilmembers Cucciardi, Rosapepe, Clauson, and Diener, thanked Councilmember Chang for his
comments and apology, and spoke to their roles as Councilmembers and service to the City.
Adoption of 2018 Building Code
Development Director Bond noted on January 14th, we received what we thought was good news as
the Governor issued an executive order delaying the implantation of the 2018 building codes. We
removed this from the work study agenda and stopped working on it thinking we had until June to
finish, but today, the Governor rescinded that order. We now have a January 315t deadline for
adoption of the 2018 building codes. We were working with South Kitsap Fire and Rescue on
substantial revisions to our local amendments and those will not be ready by next Monday. We will
have to bring forward an ordinance that changes the 2015 code to the 2018 code, and then do a
second step that will fix our local amendments further down the road, so we are consistent with
State law. Next meeting you will see a very brief ordinance adopting the 2018 building codes.
ADJOURNMENT
The meeti
adjourned at 8:13 p.m. No other action was taken. Audio/Visual was successful.
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C, City Clerk `obed Putaansuu Mayor