04/23/2021 - Retreat - MinutesORCHARD
City of Port Orchard: City Council Retreat
April 23, 2021 1 8:30 a.m. —1:00 p.m.
City Hall
216 Prospect Street, Port Orchard, WA
Welcome
The Mayor Putaansuu welcomed councilmembers to the 2021 Port Orchard Council Retreat. The mayor
introduced Joy Juelson with Triangle Associates as the facilitator. The facilitator gave an overview of the
retreat agenda and purpose. See Attachment A for a list of councilmembers in attendance.
Presentation on Existing and Potential Projects
Mayor Putaansuu gave the council a presentation on existing and potential projects. The purpose was
to ensure the council has a high-level understanding of all the projects and human resource constraints
the city is managing. The mayor provided information on funding challenges for current projects and
reviewed potential projects. See Attachment B for the Capital Projects Presentation, Attachment C for
Community Center Funding Amounts, Attachment C includes a list of project updates notes aligned with
the presentation.
City Council's Guiding Principles Update
The council reviewed the current four guiding principles which council members developed in 2019 to
guide decision making and priority setting.
Current City Council Guiding Principles:
1. Are we raising the bar?
2. Are we honoring the past, but not living in the past?
3. Are we building connections with outside partners?
4. Will this project (or action) make us proud?
The council agreed that an equity statement should be added to the City Council's Guiding Principles.
Council members generated ideas and identified a new guiding principle intended to be inclusive of
diversity, equity, and inclusion. The council decided on the following new Principle, "The decision -
making process should positively impact diversity, equity, and inclusion." The council also made the
decision to remove the principle "Will this project make us proud" because this principle can be viewed
as more subjective.
Decision: City Council decided to remove a Guiding Principle "Will this project (or action) make us
proud?" and add a new Guiding Principle
Updated City Council Guiding Principles:
1. Are we raising the bar?
2. Are we honoring the past, but not living in the past?
3. Are we building connections with outside partners?
4. New: Is the decision -making process positively impacting diversity, equity, and
inclusion?
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City Council Policy and Long -Team Goals Discussion
Council members engaged in a high-level discussion on policy items that were previously identified by
councilmembers. Triangle facilitated a discussion and identified items for further discussion at future
council meetings.
Policy items for further discussion and future:
Transportation Benefit District (TBD):
o Council discussed the idea of a ballot measure to add a .02% sales tax to go towards
road improvements. This would replace the $20.00 car tab. This may increase funds
generated from tourism and from traffic coming from outside the city.
Street Preservation and Maintenance:
o Council identified the need for prioritization and sequencing of street maintenance
projects.
American Rescue Act Federal Funds
o Council discussed use of federal funds. The city will receive $3.2M over the next two
years from the Federal "American Rescue Plan". Of these funds, $1.6M will be received
this spring 2021 and the remainder the following year 2022.
o Funds need to be spent over the next two fiscal years.
o Funds cannot be utilized for roads and can be utilized for sewer and water projects
o Funds must be spent in a two-year period.
o City has low staffing capacity to manage and implement additional projects and this
funding source cannot be used for city staffing.
Future Growth in the City of Port Orchard
o The Council discussed the need to understand future growth and to look at growth
and development holistically. Members noted that growth is increasing and it is
important that new growth or development is paired with the need to in turn fund
the corresponding need for infrastructure, such as roads, water, and sewer.
o Once capital projects are implemented, ongoing funding is needed to maintain the
infrastructure. The urban growth area and affordable housing should also be
discussed.
Prioritizing the Needs of Existing Neighborhoods
o The Council discussed the need for future conversation about preserving and
prioritizing current neighborhoods. This includes maintaining the maintenance
standards of parks, roads, sidewalks, sewers, trees, and bike lanes. Members
discussed potential funding sources which including Federal grant programs.
o This topic tied into the topic of preserving historic homes. Some members noted
that individual homeowners must petition to have their home designated as a
historic home. This may come at the expense of restoration and can be expensive.
o Some members highlighted that new development may impact historic homes and
the historic nature of Port Orchard. A councilmember recommended that the group
focus their future conversation on the value of neighborhoods.
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Transitory Accommodations
o Context - Kitsop County and Bremerton have zoning for transitory housing, such as
tiny homes. A council member asked: how does the council feel about something
similar being allowed on private property in residential or other zoned areas?
o The council decided to discuss pros and cons with county staff and continue to
address the topic at future meetings.
Policy Item - further discussion is not required:
Hazard Pay for Grocery workers:
o A big box store employee requested that the Council write a letter encouraging the
business to consider hazard pay during the COVID-19 . The council decided they are
not in favor taking the requested action as it is outside of their scope of function.
Council Project Prioritization of Carry of Funds
Council engaged in a discussion about project funds beyond the current budget process. Mayor
Putaansuu requested prioritization of additional potential projects with up to $3M as well as any
additional carry over funds that must be spent by 2022. The council developed a prioritized list of long-
term funding priority goals.
Project prioritization Discussion and Decisions
Decisions: The following are funding priority decisions
Prioritization of
• •
Project
Description Amount
Sidney South
Funding for property purchase for a stormwater facility in
the Sidney South area
$1M
Street Paving
Additional funding for street preservation and maintenance
$1M
Emergent Needs
Emergent needs related to existing capital projects. Council
$1M
identified portions of the Community Center Project that
should be categorized as one of the existing capital projects
with emergent needs, specifically the unfunded portions of
the project that include roads, parking, sea level rise, and
design.
Additional decisions
and.
-Purchasing land for
municipal purposes
-An integrated music system for the clock tower must be part of the City Hall
Notes:
Any future borrowings related to existing capital projects must involve detailed cashflow
analysis.
0 Road designs were identified as having a dedicated funding source.
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Review of the Port Orchard Organizational Assessment
The Mayor Putaansuu gave a presentation that summarized and highlighted key findings of the
Organizational Assessment. Mayor led a discussion regarding the findings in the assessment and
discussed staffing priorities that may be recommended to the council at future meetings. See
Presentation in Attachment D.
Retreat Wrap Up
Mayor Putaansuu and facilitator summarized what was accomplished at the retreat.
Progress included:
• New Guiding Principle
• Future Policy discussions
• Project prioritization of carry over funds.
• Better understanding of the Organizational Assessment and staffing need.
Mayor Putaansuu thanked the Council for an informative and productive retreat. There were no public
comments.
The meeting adjourned at 1:00 PM
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Attachment A: Participants
Councilmembers in Attendance
• Councilmember Shawn Cucciardi
• Councilmember Bek Ashby
• Councilmember Scott Diener
• Councilmember John Clauson
• Councilmember Cindy Lucarelli
• Councilmember Fred Chang
• Mayor Rob Putaansuu
Directors and Staff in Attendance (Virtually)
• Director Noah Crocker
• Additional staff support Jenine Floyd
Facilitator
• Joy Juelson, Triangle Associates
Attachment B Capital Projects Presentation
Attachment C Capital Projects Information (can remove)
Center Funding Amounts
Estimated Project Cost
$20,000,000
Public Facilities District Award (PFD)
$12,000,000
Construction Funding Need
$8,000,000
Land Value (Appraisal)
$3,900,000
Current Offer
$2,000,000
PFD Real Estate Funds
$1,000,000
State Capital Budget Request
$1,000,000
Federal Appropriation Request
$1,000,000
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Attachment C-City Projects (Capital Projects Presentation Notes)
Comprehensive Planning:
Water System Comprehensive Plan-
• Submit to Dept of Health by Nov. 15'
• March 23 -KIA Contract
o Future Date -Presentation for full council
o Water Rates and CFC
o Discounts, rates, alternative structures
Storm Drainage Comprehensive Plan
• Downtown Basin underway & uplands study
• Storm Comp Plan
o Identify Regional Storm Facilities— in-house
■ Sidney Avenue South (Flowers Meadows)
• Ian -in-house design— target completion 4.30.21
o Potential grant cycle to begin early 2021
• Currently in comp plan
• Finance evaluates $1 million borrow for purchase
• Pursuing letter of commitment for Purchase & Sale
■ Pursuing grant opportunities for regional storm water projects
Parks, Facilities and Master Planning
• McCormick Splash Pad
o Budgeted @ $115,000 for 2021 from Park Impact Fee's
o Issue addendum to revise to $250k estimate construction cost
o Out To bid in April for Construction
o City of Bremerton and City of Port Orchard coordinate easements
o Committed to complete by 4.30.2021 targeting August 2021
• Parks Plan
o Plan to be complete by end of Q2 2021
• Park Survey
o Ryan -Communication is conducting a survey on behalf of Mayor to inform council
regarding community opinions on parks and trails.
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• 640 Bay Street/ Master Planned Project
o Still underdevelopment
o Purchase & Sale Expires March 2022
Community Center
• Part of 640 Bay Street and Parks Plan Discussion
• Negotiate a Purchase and Sale Agreement with Kitsap Bank
• Until P&A is resolve -Do not go forward with the additional street design $120k
• RFM- Design 60%
Sewer Comprehensive Plan
• Scheduled to be updated in 2022 (including rates)
Facilities/Buildings Comprehensive Plan Update
• Target work to begin in 2021 (2021-2022 budget)
• Comprehensive Plans Updates have a Jan application deadline
o Mid -year review
o Plan could start 06.30.2022
o Plan needs to be complete by 6.30.2024
o To be included in 2024 Comp Plan
• City Hall Design/Shell core
o Clocktower, HVAC, Windows, Siding/Brick, Roof
0 100% Design Contract Approval on March 23
o Ad Ready by start of Q4 2021
o Total est. cost — $8.5 million
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Miscellaneous Planning
Shoreline Master Plan
• Anticipated to become effective by June 30,2021
Downtown Sub -Area
• Draft EIS is anticipated to be completed in May 2021
• Once EIS is complete City can apply for the reimbursement of $50,000 grant— Dept. of
Commerce
o Received $25k
• Study anticipated to be completed by June 30, 2021
Water Capital/Projects:
• Need to Re-evaluate the Water credit in code
o Code has language for only proportionate share of credit
■ May not be a very good financial incentive for developers
• McCormick has requested to start a water negotiation
Well 13 Part 1 is closing out.
• City Received $5.514 million of $6 million loan
Well 13- Part 2 — will cover Final design, mitigation, and construction to complete this
treatment, pumping and PRV's
• Pressure Reducing Valves (PRV)
o Evaluating 260 and 390 (12 inch from Melcher station)
• Need to review Budget, Budget shortfall, and loan funding
Well #11
• Well is drilled, need and engineer to design bid species for Ad -ready
• Selected Murray Smith
o Contract will be phased into 30% design-$95K
o Estimated to be completed (30% design) by Q2 2021
• Ad -Ready to get a full engineer estimate by Q4 2021
• Targeting DWSRF Pre Construction Loan for $500,000
• 2022 Construction Target
• Targeting DWSRF Loan (Funding)
• Federal Award of $3.2M ?
• Target 12.31.2024 to get Well #11 online unless written and extended with
Bremerton
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• PW is applying for $500k pre -construction loan
Well #12
• McCormick Communities pilot hole is done at (1500 feet)
• McCormick Contracted with Robinson Noble
o Well #12 has less of an impact on surrounding streams than Well #11
• Needs to get water rights but cannot guarantee until Foster is complete
• Next Steps....
o City and Developer need to negotiate next steps.
o Starting discussions
Foster Pilot Program
• Model analysis completed and a stakeholder meeting is scheduled for 4.13.21 for to
discuss
• City of Port Orchard needs to work with Bremerton and WSUD for mutual stream
augmentation benefits (SalmonBerry, Long Lake)
• The new information from drilling the deep wells in South Kitsap we learned the
hydraulic models are wrong —the drilling of well#12 and #13 disproved the model.
• DOE submittal to the joint legislative task force in early 2021
• DOE issued a position paper on the Foster Decision and the work involved, trying to
open the municipal water law
• Estimated to be done with RN & Pors by the end of 2021
• Estimated Completion date before JB retirement
South Shed Water Reservoir
• Decommissioning
• Looking at highest bidder for removal (reverse auction)
• Trying to get complete in August 2021
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390-580 Sidney to Sedgwick Zone
• Booster stations will be required for future development
o DR Horton is evaluating and designing one booster station
o Second booster to be determined who completes (McCormick Land Trust or
McCormick Communities)
• Glenmora is requesting sewer from the city but water from WSUD
o City would prefer to provide both
o Additionally, in the future anew Reservoir maybe needed
Sewer Capital/Projects:
Marina Pump Station
• Under Design 30-% Done
• Estimated cost for project is $13 million
o Including Design, Construction and Construction Administration
o Currently have $4.1 million in loans
o We have requested $9 million additional
• At 80% internal design review should be conducted
• 100% design by the end of September 2021
• RH2 needs to coordinate with Rice Fergus Miller on building design
• Construction advertising TBD
MW Pump Station #1— Construction Report
• Water intrusion issue is still an issue —Maintenance Bond to be provided
o Completing design for the retrofit
o Installing a surge tank
o Moving the force main
o New performance bond
• City will need to update our Capital Assets (Assets donated in 2021)
MW Pump Station #2 — Construction Report
• Closeout by end of Q2
• Working on punch list items
• Working on water and leaking issue (warranty issues)
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Stormwater Capital/Projects:
• No Update, No Projects Budgeted
• Annapolis Creek Design- Currently at 30% Design
o Applied for Local Integrating Organization (LIO) grant to complete to 100%
design—
• Applied for Ruby Creek (Sidney Culvert)
Culvert on SR16
• WSDOT installing and need coordination with PW,DCD
• WSDOT is moving the stream closer to Grey Chevrolet
• Not going to be in current Culvert location
Facilities Capital/Projects:
Security Improvements
• Working on installing smart locks in our essential facilities in remote locations (water,
sewer, police department)
• Waiting on supplies and materials
Transportation Capital/Projects:
Tremont Closeout
• Performance Bond $12.7 million is being held until complete
• Waiting on WSDOT closeout
• Waiting on the Reimbursement from TIB and letters of closeout from TIB, WSDOT
ADA Transition Plan
• Chris and Ian develop a tracking system and annual report demonstrating the City is
progressing in it's ADA plan —Maybe report out to council Q3 2021
• Darren to put information into table-Q2
Impact Fee's
• School District Impact Fee
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Bethel Corridor Phase 1-Design
• Project will be paused and funds re -allocated to the Bethel -Phase 5
• Transportation Committee may re -consider Bethel Phase 1 design project timing
Bethel Corridor Phase 5 -Bethel-Lincoln Round About
• Skilling is under contract for design
• Public outreach regarding alternative to occur
• Project to be funded from $1.5 federal grant for construction
• Project Local portion to be provided from $1.3 TIF
• Discussion on whether additional staff should bill time to project accounts
o DCD, PW, Finance
Paving Design Work
• Staff working on Design fall 2021
o Lippert (Pottery to Sidney) Postponed to 2022
o Sidney Road SW (Sedgewick to City limits)
o Looking to advertise in late 2021 & perform work in 2022
• Sidney -Sewer Avenue Main Construction
o Cost estimate —$300k
o Projects includes complete Street repairs
o Construction in April 2021
Anderson Hill Roundabout
• Federal Grant Application Submitted
• TIB —Grant Application of 2021 UAP (AUG. 2021)
O IN IS SUBMITTING — $525 OF LOCAL MATCH (BAYSIDE & TIF)
Bay Street Path- West Situational Study (Federal grant)
• $570K Award Approved — Match $76K — Funding in 2022
• Needs to be coordinated with the South Kitsap Community Events Center
Bay Street Path — ROW
• Continuing ROW acquisitions
• ROW consultant cost has increased.
McCormick Woods Drive Round About -ROW
• Public Works to procure a ROW agent
• McCormick is working on design anticipated to be complete by June 2021
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Lippert
• Need to apply for CDBG Grant — Application due in July
• Rob, Mark and Chris, to work on project
Miscellaneous Capital/Protects:
ERR (2021-2022 Budget)
• Propane or Electric PW Trucks — Research for future purchases
• Electric Parking Enforcement Vehicle
o License Plate Reading Equipment
Capital Assets
• Work on communication and process improvement between PW, Clerks and Finance
Sewer & Water Utility Tax
• WSUD and Bremerton Customers area
Bay Street WSDOT Round about Project
• Communications related to street closure and business impacts.
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Attachment D Organizational Assessment Summary Presentation
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Organizational Assessment Study
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14,770
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Employee Comparisons
400
350
300
250
200
150
100
50 so
0
■ FT Employees ■ PT Employees
2017 vs. 2020 Approximate Employees Per Capita
s
Nb
e`er
G`
C`
02017 02020
Items Acted on
HR Coordinator promoted toe HR Manager
HR re -assigned to the Administrative Department
Funded items we're working on
• Building Official
• Public Works Engineering
• IT Specialist
• Create Permit Tech Position
New position in process
New position in process
New Position in process
Position Approved
Future Positions in Report-3o FTE's
• Department of Public Services -Planning and PW Engineering
• City Manager/Administrator- Population of 18k-2ok
• Create a Parks & Recreation Department
• Assistant for the Directors
• Detail Oriented position to implement Laserfiche
• Interns
• Assistant Planner- Intern has been hired
• Additional HR employee- Hire part-time HR assistant
• Court Security
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Capital Projec
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Note: This is not a financially constrained plan. This is intended to illustrate the project estimates and potential funding sources.
1
City Hall Improvements -$8.5 million:
Project is currently in Design Phase (30%-100%) for improving the building exterior including roofing, siding, windows and HVAC system.
Categow, m tart Completion Cos
Design (100%) 03.23.2021 09.01.2021 $395,000
Construction 01.01.2022 02.28.2023 $8,000,000
Total $8,500,000
General Fund (73%)
Water Operating Fund (10%)
Sewer Operating Fund (10%)
$365,000-$440,000
$50,000-$60,000
$50, 000-$60, 000
Storm Operating Fund (7%) $35,000-$42,000
Bethel tt Lincoln Round About TIP 2.04 - $2.8 million:
Project is in Design Phase (30%) and is to acquire necessary right of way, design and construct a safety improvement round about at the
Bethel and Lincoln street intersection.
Design (30%) 2.01.2021 09.01.2021 $462,000
ROW 09.01.2021 $135,000
Construction 01.01.2022 12.31.2023 $2,203,000
Total
$ 2, 800, 000
�J
Bay Street Pedestrian Pathway- $7.825 million:
Project is completing the ROW Phase to acquire and then complete the construction of the Bay Street Pedestrian Pathway (Segment 1,6-11)
ROW -Consulting Services 09.01.2021 $825,000
ROW -Purchase 09.01.2021 Est. $2,000,000
Construction 01.01.2022 12.31.2023 Est. $5,000,000
Total $7,825,000
Relies
on
future
REET
Funding
L .1
Well 11 - $8.0 million:
Project is in Design Phase (30%-100%) and is to design and construct well 11 to increase water supply from 750 to 1250 GPM.
Category Start
Design (100%) 12.01.2020
Testing/CACM (100%)
Construction 01.01.2022
Total
12.31.2023
12.31.2023
$720, 000
$280,000
$7 million
$8,00,000
WA DWSRF-Pre $500,000 Debt No No - Not approved yet
Construction
WA DWSRF-Construction $5000,0l
Debt No JlllLo;- Not approved ye
Water Operating Fund (75%)
$308,000/yr
Water Capital Facility Charges (CFC) (25%) $103,000/yr
Well 13 Part 1-Actual Cost $6.194 million:
Project is currently be closed down. This project completed design and construction of logging/site prep, drill Well Ft Casing,
and Maple Street waterline improvements. Part 2 will complete the full project (treatment, pumping, and PRV's).
%ollillp Liar
Land Purchase $315,000
Design (100%)
Construction
Total
Water Operating Fund (25%)W
Water Capital Facility Charges (CFC) (75%)
'1�$89, 500/yrl
$268,500/yr
$1,610,000
$4,269,000
$6,194,000
Well 13 Part 2- Actual Cost $5.0 million:
Project is currently awaiting water rights resolution from the Foster decision. Part 2
will complete the fuTFproject including treatment, pumping and PRV s.'Once
complete Well #13 will provide additional water supply of 2000 GPM to the City.
Design/CACM (100%)
Construction
Total
Water Operating Fund (25%)
44
TBD
Water Capital Facility Charges (CFC) (75%)
Completion C
TBD 111 111
$81,250/yr
$243,750/yr "M"W
$ 5, 000, 000
Marina Pump Station - $13 million:
This project is in the 80% Design Phase and will replace the City's central sewer infrastructure pump station on the water front as well
as add additional overflow storage and meet safety requirements. This is a critical project as the focal point of the sewer
infrastructure connecting pipes to the treatment facility. This project is being designed in coordination with other waterfront
redevelopment projects.
E=Fmmm
Design/CACM (100%)
Construction
Total
09.01.2021
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Rewer Operating Fund (5 $425,000/yr
Sewer Capital Facility Charges (CFC) (50%) $425,000/yr
Completion
TBD $1,300,000
`f►AdMIN91
$11,700,000
$13,000,000
Summary
Future Debt Service Obligations-(2024-2044)
General Fund
Water Operating Fund (Rate Revenue)
Water Capital Fund (Capital Facility Charge)
Sewer Operating Fund (Rate Revenue)
Sewer Capital Fund (Capital Facility Charge)
Storm Operating Fund
$1054, 000
I
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Questions
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