05/15/2012 - Work Study - MinutesCity of Port Orchard
Council Meeting Minutes
Work Study Session of May 15, 2012
7:00 p.m. Call to Order
Mayor Matthes called the meeting to order at 7:00p.m. Mayor Pro-Tem Jerry Childs and
Councilmembers Fred Chang, John Clauson, Cindy Lucarelli, Jim Colebank, Carolyn
Powers and Rob Putaansuu were present. Public Works Director Mark Dorsey,
Development Director James Weaver, Treasurer Allan Martin, City Clerk Brandy
Rinearson, Deputy City Clerk Rhiannon Fernandez, Office Assistant Jenine Dennison and
City Attorney Greg Jacoby were also present.
Mayor Matthes led the audience and Council in the Pledge of Allegiance.
1. Presentation: Bethel Corridor Road Design Plan
Public Works Directory Dorsey summarized the presentation by stating money is limited
and the ability to get money is much more restricted. The project will have to be designed
in smaller pieces. The three options include; develop a plan similar to the current plan; put
a turn lane down the middle and make it functional; or do nothing and address the
maintenance issues. In addition, suggested there be an elected-to-elected conversation
regarding the properties that the County purchased for regional storm drainage.
Perry Shea, with Shea Carr Jewell, gave a presentation on the Bethel Road Corridor
Development Plan, stating the county Comp Plan addresses the re-designation,
development pressure, increasing traffic volumes, intersection congestion, community
outreach, and corridor plan. The Corridor Plan included the following:
• Past community outreach and key concerns reviewed;
• Bethel corridor goes from Ives Mill Road to Lundberg Road;
• Bethel Street Cross-Section;
o 100-foot right of way
o Blends auto traffic with non-motorized features
o 8 foot sidewalks, ?-planter strips
0 s-foot bike lanes
o 16 foot median for access control aesthetics
• Safety & Access design elements;
• Commercial Collector Roadways -have been advanced to 30% by the county;
• Corridor design and land use guidelines;
• Undergrounding considerations -there is a possibility to cost share with Puget
Sound Energy;
• Design project status;
o 95% complete
o Project designed for three separate phases
• Right of way (ROW) project status;
• Project Challenges;
• Project Costs;
• Potential value engineering ideas;
• Funding Scenarios; and
• Potential Timeline.
May 15, 2012, Work Study Session Minutes
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In response to Councilmember Clauson, Public Works Director Dorsey stated the County
purchased the parcels for storm water with County Funds. The City Treasurer stated the
County Auditor would have the information available as to what fund the parcels were paid
from.
The City Attorney stated the City do not have road impact fees and needs to incorporate
into the TIP and CFP what our plan is for the Bethel Corridor. That is the basis for getting
impact fees and being able to tell developers they need to do mitigation. That currently is
not in place.
Council Direction: Council directed staff to work on establishing impact fees and to find
out what funds were used, by the County, to pay for the storm water properties.
2. Update: Bethel Corridor North Preliminary Supplemental2012 Budget
City Treasurer Martin presented the Bethel Corridor North Preliminary supplemental 2012
budget.
Councilmember Clauson added that revenues will be coming to the City at different times
and sales tax will start coming ahead of property taxes. However, additional services are
being provided now, and the committee recognizes that staff will have to work harder until
September, when the revenues can pay for additional staff. This proposed budget captures
those staggered funding receipts coming into the City.
Councilmember Clauson also stated the Council wanted to preserve a large portion of new
revenue to go towards street improvement of the Bethel Corridor, but because of the
staggered starts in revenue and the immediate demands placed on the City, this year is
probably not the year to start putting that money away.
In response to Councilmember Colebank, Councilmember Clauson stated that the bottom
line is that the City does not see new revenue until September, and that the budget will be
okay, but there will not be any to spare.
Councilmember Putaansuu added that at the end of the year we will have a balanced
budget, but we cannot hire new staff until September.
In response to Councilmember Powers, the City Treasurer responded that the Bethel
Corridor Annexation results in budget changes of $476K, offset by franchise fees, utility
taxes, storm drainage collections, state revenues, fuel tax, and criminal justice money. That
amount will all be used to balance the budget and come in with $16,000 left over.
The City Treasurer thanked the Finance Committee, Heidi Draper, and Debra Walker for all
of their hard work on this process.
Council Direction: No direction was given to staff.
3· Update: 2012 Budget Amendments
May 15, 2012, Work Study Session Minutes
Page 3 of 5
The City Treasurer reviewed the first half budget amendments, which included:
1. $18,970 for Dimensional Audio for audio upgrades to the Council Chamber
completed in 2011 but invoiced after 2011 year-end transferred from
Cumulative Reserve for Municipal Facilities Fund No. 302 to Current Expense
Fund No. 001.
2. $258,629 for the Interlocal Agreement dated November 14,, 2001 between
Kitsap County and the City concerning sales tax revenue sharing, set aside and
budgeted in 2011 but not reconciled and invoiced by the County until 2012
from Current Expense Fund No. 001.
3. $5o,ooo additional for paving projects to mitigate unforeseen challenges
caused by poor subsurface from Cumulative Reserve for Municipal Facilities
Fund No. 302 transferred to City Street Fund No. 002.
4. $2o8,ooo for conversion of 22 McCormick Woods Septic Tank Effluent
Pumping systems and 170 pump-outs from Water Sewer Utility Fund No. 401
Fund Balance.
5. $1,000,000 to mitigate water quality issues relating to Well No.9 to meet the
City's priority of ensuring safe potable water $300,000 from Water Sewer
Utility Fund No. 401 Fund Balance and $700,000 transferred from
Cumulative Reserve for Water-Sewer Fund No. 403 to Water Sewer Utility
Fund No. 401.
6. $125,000 to the Storm Drainage Equipment Fund No. 422 established in
Ordinance No. 022-11 to set money aside for future equipment purchases
transferred from Storm Drainage Utility Fund No. 421 to Storm Drainage
Equipment Fund No. 422.
7. $612,000 McCormick Woods Impact Fees received and held in Current
Expense Fund No. 001 transferred to the Transportation Impact Fee Fund No.
111 (Impact Mitigation Fee Fund) as described in· Title 16 Port Orchard
Municipal Code.
8. $197,000 added to Water Sales revenue due to the rate increase approved
Ordinance No. 027-11, December 13, 2011 for the Water Sewer Utility Fund
No. 401.
9. $9,850 Water Utility tax from the Water Sewer Utility Fund No. 401 to the
Current Expense Fund No 001.
10. $19,000 for Developers Handbook to be shared among three funds City Street
Fund No. 002 $2,280, Water Sewer Utility Fund No. 401 $11,780 and Storm
Drainage Utility Fund No. 421 $4,940.
11. $476,548 adjustments for Bethel Corridor North annexation supplemental
expenditures and revenue as described in the Bethel Corridor North
Annexation Supplemental Budget.
In response to Councilmember Powers, City Treasurer Martin clarified that the fund
number is correct for the McCormick Woods Impact Fees; he had just given the fund the
wrong name. This is Parks money.
In response to Councilmember Powers, the City Treasurer Martin responded that a break
out of the Impact Mitigation Fund could be seen at any time.
May 15, 2012, Work Study Session Minutes
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Council Direction: The Council agreed to move the Ordinance to the May 22, 2012,
Council Meeting Agenda for consideration.
4· Discussion: Finance Reserve Policy
City Treasurer Martin presented the draft City of Port Orchard Financial Policies. The
Finance Committee has reviewed them. The Policy builds a framework and foundation for
sound financial management and common best practices. The Police includes the
following:
• Financial Goals;
• General Policies;
• One-time revenue identification;
• Reserve Policy; and
• Stabilization Arrangement (formerly Contingent Fund).
In response to Councilmember Powers, the City Treasurer Martin clarified the word
"programs" means if we have a parks department and we have programs, whoever
participates in those programs, they would have to pay. Park users would not have to pay to
use a park.
Councilmember Powers stated that under Accounting Policies, Item 2, she would like the
word "appropriate" in front of"staff and management", instead of"Council".
In response to Councilmember Childs, the City Treasurer Martin clarified that the event
and meeting costs that are covered by the City are outlined in the Personnel Manual, and do
not need to be included in the Finance Policy. City Treasurer Martin also explained that the
City uses the Pharris Memo issued by the Washington State Attorney General to determine
what can be reimbursed with tax payer dollars. Finally, he stated the City's Budget Book
states what the Council has agreed to participate in for 2012.
Councilmember Colebank stated he is unclear what the budget is for Council expenses and
what is allowed to be covered.
Council Direction: The Council will submit any recommended changes for the Finance
Policy to the City Treasurer within the next two weeks. Staff will incorporate the changes
and bring the policy forward as part of the 2013 budget process.
The Council directed the City Clerk to add to a future Work Study Session to create a policy
on what is acceptable for reimbursement. The City Clerk will provide a list of events that
have been historically attended by the Council and Mayor, and she will give an update of
what has been collectively spent.
5· Discussion: Board and Conunittee Appointments
Councilmember Chang presented a spreadsheet of Committee Appointments, which
outlined who gets to choose committee members, who votes, and who confirms.
May 15, 2012, Work Study Session Minutes
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Council Direction: No direction was given to staff.
Next Work Study Session-Tuesday, June 19, 2012
At 8 :58 p .m. the meeting was adjourned.
Brani:ly Rinearson, CMC, City Clerk
d~.uttd~
Timothy C. atthes, Mayor