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12/11/2012 - Regular - MinutesCity of Port Orchard Council Meeting Minutes Regular Meeting of December 11, 2012 1. CALL TO ORDER AND ROLL CALL Mayor Tim Matthes called the meeting to order at 7:00p.m. Mayor Pro-Tem Jerry Childs and Councilmembers Fred Chang, John Clauson, Rob Putaansuu, Carolyn Powers, Jim Colebank, and Cindy Lucarelli was present and constituted a quorum. City Clerk Rinearson, Police Chief Townsend, Public Works Director Dorsey, City Treasurer Martin, Development Director Weaver, Human Resources Coordinator Howard, Deputy City Clerk Fernandez, and City Attorney Jacoby were also present. A. Pledge of Allegiance Joseph Rivera, a cub scout, led the audience and Council in the Pledge of Allegiance. Mayor Matthes opened public comment for Consent Agenda Item 4C Adoption of Ordinance No. 021-12, Amending the 2012 Budget. No comments were given. 2. CITIZENS COMMENT Jerry Arnett announced that he will begin addressing his concerns regarding the water rate after the holidays. Mark Trenary asked why the Interlocal agreement with the Department of Enterprise Services for co-op purchasing was not utilized in the lease of the Public Works copier. His profession is in this field, and he would have liked to have been able to provide his services to the City. As requested by the Finance Committee Chair, City Clerk Rinearson will provide more information on this matter to the committee. Don Ryan commented on the meeting with Representative Angel, and would like to see the Finance Committee come up with a Bill allowing local jurisdictions to receive some of the taxes collected by the State on rental cars. 3.APPROVALOFAGENDA The following items were removed from the Consent Agenda and placed under Business Items: • Approval of Contract No. 003-13, Authorizing the Mayor to Execute a Contract with Kitsap Economic Development Alliance for Economic Development Services; • Approval of Contract No. 005-13, Authorizing the Mayor to Execute a Contract with Progressive Landscape LLC, for Parks Maintenance; and Minutes of December 11, 2012 Page 2 of 19 • Approval of Amendment No. 2 to Contract No. 011-10, Authorizing the Mayor to Extend the Interlocal Agreement with the Department of Enterprise Services for Co-Op Purchasing. The following was added to the agenda: • Approval of Treasurer's Checkbook Councilmember Childs MOVED and Councilmember Colebank seconded the motion approving the Agenda as amended. Upon vote, the motion passed unanimously. 4· APPROVAL OF CONSENT AGENDA A. Approval of Claim Warrants Nos. 58642 through 58744 in the amount of $654,307.25, November's Payroll Warrants Nos. 144867 through 144914 in the amount of $555,505.51, and the Treasurer's check book in the amount of $3,991,461.86. B. Approval ofthe January 10, 2012, Council Meeting Minutes C. Adoption of Ordinance No. 021-12, Amending the 2012 Budget D. Adoption of Ordinance No. 023-12, Adopting a Policy of Payment of Claims or Obligations by Check E. Adoption of Resolution No. 036-12, Acknowledging Authorization of Springbrook Bid Proposals as Anticipated in the 2012 Budget F. Adoption of Resolution No. 037-12, Declaring Certain Personal Property as Surplus G. Approval of Contract No. 002-13, Authorizing the Mayor to Execute a Contract with Gordon Thomas Honeywell-Governmental Affairs for Lobbying Services H. l .. ppro:val of Contmet No. 003 13, l .. uthorizing the Mayor to Exeeute a Contraet with Kitsap Eeonomie Development Allianee for Eeonomie Development 8erviees I. Approval of Contract No. 004-13, Authorizing the Mayor to Execute a Contract with Pacific Air Control, Inc. for HV AC Preventive Maintenance J. Approval of Contraet No. 005 13, } .. uthorizing the Mayor to Exeeute a Contraet with Progressive Landseape LLC, for Parks Maintenanee K. l .. pproval of Amendment No. 2 to Contraet No. 01110, l .. uthorizing the Mayor to Extend the lnterloeal l..greement ·#ith the Department of Enterprise 8efViees for Co Op Purehasing L. Approval of Amendment No. 3 to Contract No. 025-10, Authorizing the Mayor to Extend the ABM J ani to rial Services Contract for Janitorial Services M.Approval of Amendment No. 2 to Contract No. 001-05, Authorizing the Mayor to Execute a Contract with Waste Management of Washington, Inc., dba Brem-Air Disposal for Solid Waste Collection and Recycling Pick-up Services N. Approval of Public Event Application: Yukon Do It Marathon Councilmember Putaansuu MOVED and Councilmember Chang seconded the motion approving the Consent Agenda as amended. Upon vote, the motion passed unanimously. 5· PRESENTATION There were no presentations. 6. PUBLIC HEARING A. Comprehensive Plan Update Minutes of December 11, 2012 Page3 of19 Development Director Weaver presented the staff report, noting this Public Hearing is being conducted for the 2012 City of Port Orchard Comprehensive Plan Amendments, in accordance with RCW 36.70A.130 and POMC 16.05.080. The Growth Management Act (GMA), RCW 36.70A states, as a general rule, each city that plans under the GMA may amend its comprehensive plan no more frequently than once every year. These site-specific and city-wide amendments were developed in consideration of the goals of the GMA for the development of local comprehensive plans, as codified at RCW 36.70A.020, and reflect a careful balancing of these goals within the local conditions of the City of Port Orchard. These amendments were developed from and are consistent with the Kitsap Countywide Planning Policies (CPPs). The following items are the proposed changes for consideration to the Port Orchard Comprehensive Plan: 1) Update of Zoning and Comprehensive Land Use Maps. The 2012 annexation of Bethel North, Retsil, and additional smaller 2012 annexations required the update to the City of Port Orchard zoning and comprehensive Land Use Maps to accommodate the changes to the incorporated city limits. 2) Comprehensive Plan Site Specific Map Revision: Comprehensive Plan Map revision for parcels near McCormick Woods Drive to reflect the zoning designation of R- 8 and a Comprehensive Plan Designation of medium density residential. The Port Orchard Planning Commission passed Resolution No. 008-12, recommending support of the above 2012 updates to the Port Orchard Comprehensive Plan. Mayor Matthes opened the Public Hearing, and there being no testimony, closed the Public Hearing at 7:23p.m. B. Update to Port Orchard Municipal Code Title 16.20.201 Downtown Overlay District -Permitted Uses Development Director Weaver presented the staff report, noting in an effort to accommodate the public health, safety, and welfare of the City of Port Orchard Downtown Overlay District, the following changes are proposed to the permitted uses tables relating to land use adjacent to Bay Street. A Public Hearing was held on December 11, 2012, to receive testimony and public comment on the proposed Downtown Overlay District Code change for 2012. Minutes of December 11, 2012 Page 4 of19 Planning Commission input and consideration was identified as an essential step for implementation and needed clarifications to our existing Downtown Overlay District code and that support the goals and policies of our Comprehensive Plan. Meetings were noticed and held with the Planning Commission in November of 2012. Draft code language was prepared as a result of the Planning Commission recommendations, which are set forth in Planning Commission Resolution No. 010-12. Mayor Matthes opened the Public Hearing at 7:25 p.m. Jerry Harmon asked if this change was in reflection of her comments from earlier this year. She thought she would have been notified during the process of this update, since she is the one that brought this to the attention of the Council. She was not aware this went through the Planning Commission. Mr. Weaver said this was in direct response to Ms. Harmon's request about tattoo parlors. This was discussed at length at the Work Study in July. Direction to staff was to make the single change for the location of tattoo parlors on Bay Street and address all of the uses in the update next year to the Downtown Overlay District (DOD). At that point, this was processed through the Planning Commission. The only change is Item Z in Section 2 that parlors will only be allowed on the second floor. Businesses downtown were notified about the hearing. He can do a better job in notifying others in the future. Ms. Harmon said it was not the issue of the pawn shop or the tattoo parlor. She was using them as examples to her point that the council worked very hard when creating the DOD and expressing what kinds of businesses they wanted downtown. The way it is written, just about any business can be downtown even though there is a list in the plan. Another State document overrides the DOD, which allows all businesses to be downtown. She wanted the City to amend the document so that it would have some teeth in it. There being no further testimony, Mayor Matthes closed the Public Hearing at 7:30 p.m. 7· BUSINESS ITEMS A. Adoption of Ordinance No. 019-12, 2012 Amendments to the Port Orchard Comprehensive Plan Development Director Weaver presented the staff report, noting a Public Hearing was conducted earlier this evening for the 2012 City of Port Orchard Comprehensive Plan Amendments. The Growth Management Act (GMA), RCW 36.70A states, as a general rule, each city that plans under the GMA may amend its comprehensive plan no more frequently than once every year The site-specific and city-wide amendments were developed in consideration of the goals of the GMA for the development of local comprehensive plans, as codified at RCW 36. 70A.020, and reflect a careful balancing of these goals within the local Minutes of December 11, 2012 Page 5 of 19 conditions of the City of Port Orchard. These amendments were developed from and are consistent with the Kitsap Countywide Planning Policies (CPPs). The Port Orchard Planning Commission passed Planning Commission Resolution No. oo8- 12, recommending support of the above 2012 updates to the Port Orchard Comprehensive Plan. The attached Ordinance No. 019-12, accommodates the Planning Commission recommendations and adopts the 2012 updates to the Port Orchard Comprehensive Plan. In response to Councilmember Chang, Development Director Weaver said the original plans from 1983 were based on a proposal for a conference center and a gas station. That has not been well received and the market does not support it. The applicant felt the zoning should revert back to the remainder of the McCormick Woods zoning. Councilmember Powers MOVED and Councilmember Colebank seconded the motion to adopt Ordinance No. 019-12, amending the Port Orchard Comprehensive Plan. Upon vote, the motion passed unanimously. B. Adoption of Ordinance No. 020-12, Amending the Port Orchard Municipal Code Title 16.20.201 Downtown Overlay District -Permitted Uses Development Director Weaver presented the staff report, noting in an effort to accommodate the public health, safety, and welfare of the City of Port Orchard Downtown Overlay District, the following changes are proposed to the permitted uses tables relating to land use adjacent to Bay Street. A Public Hearing was held on December 11, 2012, to receive testimony and public comment on the proposed Downtown Overlay District Code change for 2012. In response to Councilmember Colebank, Development Director Weaver said this change moves new tattoo parlors up to the second floor, existing tattoo parlors are grandfathered in. The overall issues were discussed at Work Study and the main problem of fixing the code was deferred to the next year's work cycle. Staff will be working on fixing the issues raised by Ms. Harmon next year. This amendment is only a small fix for the single issue. In response to Councilmember Chang, Development Director Weaver said the rest of the uses throughout the City of Port Orchard use the Standard Industrial Classification (SIC) Code. We have a solution, but it will take time to correct it. In response to Councilmember Chang, City Attorney Jacoby said he is not sure if the code will be able to exclude pawn shops in the DOD. There may need to be hearings and specific factual findings to support the findings of Council. Councilmember Childs MOVED and Councilmember Powers seconded the motion to adopt Ordinance No. 020-12, approving the proposed amendments to the Title 16.20.201 Downtown Overlay District -Permitted Uses. Upon vote, the motion passed unanimously. Minutes of December 11, 2012 Page 6 of19 C. Approval of November 20, 2012, Work Study Session Meeting Minutes Councilmember Powers said she has reviewed all of the meetings by watching the videos and reading the agenda packet materials and would like to vote on the minutes. There was no objection from Council or the audience to Councilmember Powers voting on the minutes. Councilmember Putaansuu MOVED and Councilmember Colebank seconded the motion to approve the November 20, 2012, Work Study minutes. Upon vote, the motion passed unanimously. D. Approval ofN ovember 27, 2012, Council Meeting Minutes Councilmember Chang MOVED and Councilmember Lucarelli seconded the motion to approve the November 27, 2012, Council Meeting minutes. Upon vote, the motion passed unanimously. E. Adoption of Resolution No. 038-12, Confirming Mayoral Appointments to Boards, Committees, and Commissions City Clerk Rinearson presented the staff report, noting annually, the City Clerk advertises the qualifications and duties of each expiring term on the various boards, committees, and commissions that have open seats. This year, applications were due to the City Clerk's office on November 28, 2012, and the following applications were received for the following Boards, Committees and Commissions: Planning Commission, Stephanie Bailey; Civil Service Commission, Rick Wyatt; Building Board of Appeals, none; and Library Board, Rebecca Guthrie and Mary Johnson; Design Review Board, Bryan McKinnon and Tadina Crouch. The Mayor has appointed the following persons to the following Boards, Committees and Commissions: Mary Johnson to a term expiring December 31, 2017 and Rebecca Guthrie to fill an unexpired term ending on December 31,2014, on the Library Board; Tadina Crouch to a term expiring December 31, 2015, on the Design Review Board. In addition, the Mayor has re-appointed Stephanie Bailey to a term to expire December 31, 2016, on the Planning Commission; Bryan McKinnon to a term to expire December 31, 2015 on the Design Review Board; and Rick Wyatt to a term to expire December 31, 2018 on the Civil Service Commission. Appointments to the Civil Service Commission do not require City Council confirmation. The Mayor is still looking for a qualified candidate to fill the vacant Building Board of Appeals Position No.3. In response to Councilmember Childs, Police Chief Townsend said the Civil Service Commission dictates the police testing process for promotions and entry-level positions. If Minutes of December 11, 2012 Page 7 of19 there was a disciplinary hearing, the employee could choose to go through the Guild or the Civil Service Commission. They would sit as a board to hear the disciplinary hearing. Councilmember Powers MOVED and Councilmember Colebank seconded the motion to adopt Resolution No. 038-12, confirming the Mayor's appointments to the Planning Commission, Library Board, Design Review Board, and Civil Service Commission as set forth in the Resolution. Upon vote, the motion passed unanimously. F. Adoption of Resolution No. 039-12, Adopting the Removal of the Part-time Front Counter Position and Establishing a Full-time Administrative Assistant for the Building/Planning Department Human Resources Coordinator Howard presented the staff report, noting at the November 20, 2012, Work Study Session, the City Council directed staff to proceed with the Finance Committee's recommendations for the 2013 Budget. The 2013 Budget reflects a realignment of the Planning department. The proposed is to revise the Planning Administrative Assistant job description with the removal of the Part-time Front Counter Clerk position, which was approved by the Finance Committee on November 22, 2010, and approved in the 2011 budget -Ordinance No. 027-10. The front counter duties will be imbedded in the Administrative Assistant's job description establishing a full-time Administrative Assistant for the Building/Planning Department. The Building/Planning Department Administrative Assistant will continue to serve the City in multiple existing responsibilities. These include, front counter duties, Clerk to the Hearing Examiner, preparing public notices, annexation processing, department distribution mailings for Planning Commission meetings, Planning Department Website updates, project filing and records keeping, permit intake & distribution, processing and publications of SEP A determinations, and preparing Planning Commission, Design Review Board, and Public Hearing minutes for the City Hearing Examiner. In recognition in that, full-time administrative staff support is essential to maintain this level of operations within the Building/Planning Department, staff requests Council approval as allocated through the 2013 budget to have the Planning Administrative Assistant position be revised and designated as full-time. Councilmember Putaansuu MOVED and Councilmember Clauson seconded the motion to adopt Resolution No. 039-12, adopting the removal of the part- time front counter position and establishing a Building/Planning Department full-time Administrative Assistant position with salary & benefits. Upon vote, the motion passed unanimously. G. Adoption of Resolution No. 040-12, Adopting the Revised Job Description for the Custodian Maintenance Worker Minutes of December 11, 2012 Page 8 of19 Human Resources Coordinator Howard presented the staff report, noting at the October 9, 2012, the City Council approved the Contract No. 073-12, authorizing the Mayor to execute agreement with Kitsap Community Resources for Community Service Worker Program. The current Community Resource Program supervisor will be reassigned back to his previous public works assignment in a Custodian Maintenance Worker maintaining janitorial work for the buildings of the City. A return to a janitorial position releases the City from the need to contract out such services providing annual budget relief of $71,510. Staff is requesting Council approval to approve the revised job description for the Custodian Maintenance Worker. Councilmember Colebank said he understood why the changes are happening, but regrets losing the service of our current contracted custodians who take pride in their work. Councilmember Lucarelli MOVED and Councilmember Chang seconded the motion to adopt Resolution No. 040-12, adopting the revised job description of the Custodian Maintenance Worker. Upon vote, the motion passed unanimously. H. Adoption of Resolution No. 041-12, Repealing Resolution No. 046-06; Eliminating the Temporary Part-time Assistant Planner Position; and Establishing a Full-time Associate Planner-Job Share Position Human Resources Coordinator Howard presented the staff report, noting at the November 20, 2012, Work Study Session, the City Council directed staff to proceed with the Finance Committee's recommendations for the 2013 Budget. The 2013 Budget reflects a realignment of the Planning department, which includes job sharing and reducing hours. The proposed is to establish a full-time Associate Planner -Job Share position replacing the Assistant Planner Position, Resolution No. 46-06, and the temporary part-time Associate Planner Position, which was approved by Council on February 12, 2008. The City Council has been meeting to review proposed requests from the various Departments for funding in 2013. The request for an Associate Planner-Job Share position will continue to work in managing and administering all assigned municipal land use issues, process land use applications, review building permits, business licenses for conformance to zoning codes, and provide good customer service by answering questions from the public on zoning and comprehensive plan issues at the front counter of the Department. Staff is requesting Council approval as allocated through the 2013 budget to approve the full-time Associate Planner-Job Share position. In response to Councilmember Colebank, Councilmember Clauson said the grant funded person will be able to stay on as part of the job sharing position. Minutes of December 11, 2012 Page 9 of19 In response to Councilmember Powers, Development Director Weaver explained the job share arrangement and the differences between an assistant planner and associate planner. Councilmember Clauson MOVED and Councilmember Chang seconded the motion to adopt Resolution No. 041-12, repealing Resolution No. 046-06; eliminating the Temporary Part-time Assistant Planner position; and establishing a new position, Associate Planner -Job Share, in the Building/Planning Department as part of the 2013 Budget. Upon vote, the motion passed unanimously. I. Approval of Contract No. 078-12, Authorizing the Mayor to Execute Grant Agreement No. G1200586 with the Department of Ecology for the Cedar Heights Junior High Sidewalk Project Public Works Director Dorsey presented the staff report, noting in 2010, the City of Port Orchard submitted a Storm water Retrofit Grant Application to the Department of Ecology for the Cedar Heights Junior High Sidewalk Project. The 2012 Supplemental Capital Budget funded a proviso for projects that were not initially funded with the original grant application. In May of this year the City was informed that the grant request of $135,000 was funded and the City would need to provide a match of $45,000 from the Storm Drainage Utility Budget. This will fund the stormwater portion of the Cedar Heights Project. It is anticipated this project will be constructed in 2013. In response to Councilmember Putaansuu, Public Works Director Dorsey said this project originally went to bid in 2007. Staff has worked with PRSC for additional funding to redesign the project and make improvements. The City now has easements and right-of- way dedications in place and agreements from the school district. The City received $254,000 from PSRC/KRCC, so there is funding in place to complete the project. They will also add sanitary sewer extension, so we don't have to touch the sidewalks in the future. Construction will happen this summer while school is out. Councilmember Powers thanked Public Works Director Dorsey for promoting the project through PSRC and KRCC. Councilmember Putaansuu MOVED and Councilmember Powers seconded the motion to approve Contract No. 078-12, authorizing the Mayor to execute the Department of Ecology Grant Agreement Number G1200586 for the Cedar Heights Junior High School Sidewalk Project. Upon vote, the motion passed unanimously. J. Approval of Contract No. 079-12, Authorizing the Mayor to Execute an Agreement with North Woods Productions for Photography and Video Services for the Festival of Chimes and Lights Minutes of December 11, 2012 Page 10 of19 City Clerk Rinearson presented the staff report, noting Councilmember Lucarelli, Economic Development/Tourism Committee Chair, met with North Woods Productions to find ways to capture the festivities of the Festival of Chimes and Lights. This service would allow the City to use the photos as a marketing tool. The photos could be a great way to engage future partnerships with local organizations, promote tourism, and increase attendance of the event. The amount of effort and time to take photos in the dark, rain, and moving crowds are tremendous. The detailed process to enhance the photos from a "before and after" perspective is a work of art. The photographer was able to capture over 100 usable good quality images. These images will be used in marketing brochures, advertisements, and placed on the City's website. Councilmember Powers thought this was a great idea, and hopes the images can be provided on the website. Councilmember Lucarelli will put the photos on the website and give an overview in January of what was received. Councilmember Colebank asked why we did not put out a bid for this and if there was a photographer downtown that could have provided services. Councilmember Lucarelli said she had to find out how much money was in the budget. Northwoods had produced something for the Chamber and City a couple of years ago, and he was able to cut the City a deal and be available in a limited amount of time. The total cost was $743.91. Councilmember Childs said the photos are a great idea to help market the event and they are excellent pictures. Councilmember Clauson said Kitsap Transit has used this company before and they do high class, quality work. Councilmember Lucarelli MOVED and Councilmember Childs seconded the motion to approve of Contract No. 079-12, authorizing the Mayor to execute an agreement with North Woods Productions for photography services for the Festival of Chimes and Lights. Upon vote, the motion passed unanimously. K. Approval of Amendment No. 2 to Contract No. 001-09, Authorizing the Mayor to Extend the Professional Services Contract with McGavick Graves, P .S. for Legal Services City Clerk Rinearson presented the staff report, noting the current contract for legal services between the City of Port Orchard and McGavick Graves will expire on December 31, 2012. The Mayor proposes to extend the current contract for one additional year with the intent of going out for a Request for Proposal (RFP) for 2014 services. In addition, it has been agreed that the hourly rate charged to the City of $160, for legal services, will remain the same. McGavick Graves has agreed to these terms. Minutes of December 11, 2012 Page 11 of 19 Councilmember Clauson MOVED and Councilmember Putaansuu seconded the motion to authorize the Mayor to Extend Amendment No.2 to Contract No. 001-09, with McGavick Graves P.S. for legal services. Councilmember Clauson reported he and the Mayor contacted Joe Levan, a legal consultant at MRSC, regarding who has the authority to negotiate a contract. Councilmembers were provided copies of the response, and it basically stated that it is not uncommon for the Mayor to negotiate a contract for Council. Ultimately, authority to set duties and compensation goes to the Council. The Mayor negotiated a contract with McGavick Graves, the Finance Committee also met with the City Attorney, and they have developed a different recommendation of entering into a three year agreement, and hold the hourly rate at $170 for three years. The committee feels this will provide longer term stability with City Attorney. Councilmember Clauson understands what the Mayor is proposing for an RFP, but a survey was conducted of what other jurisdictions pay for legal service rates, and at Kitsap Transit they just renewed a contract with their attorney for $225 an hour. Mayor Matthes said they did contact MRSC and A WC, and they are both of the opinion that the contract begins with the Mayor, who negotiates the contract, and then seeks approval from the Council, which is what he has done. He would like the Council to consider the contract and vote on it. If is not approved, he does not believe entertaining a motion to have the Council negotiating the contract is in order. The Council has to make suggestions to him, and he will renegotiate the contract based on Council direction and bring it back for approval. He does not believe the Council needs to get into the middle of the negotiations; they only have to vote on the approval or disapproval of it. Councilmember Childs said he will vote no, because it is important to get a good value for the money they pay out for an attorney. He feels it is a low-ball offer and is not fair. He likes the three year idea, because it gives us continuity and stability and carries forward the institutional knowledge McGavick Graves has. In response to Councilmember Powers, Mayor Matthes said he was at the Finance Committee meeting when they were talking with the City Attorney, but he was not in agreement that they were negotiating anything. In response to Councilmember Powers, Mayor Matthes said he was on the Transit Board when they approved the attorney contract, but he, as a board member, did not get involved in the negotiations of the contract. That is not his role as a board member, he is to approve or disapprove it. In response to Councilmember Powers, Mayor Matthes said he had originally made a contract offer to McGavick Graves, and then told the Finance Committee about it. That is when they got involved and decided they should negotiate it instead. Minutes of December 11, 2012 Page 12 of19 Councilmember Clauson acknowledged that Mayor Matthes had started the contract negotiations with the attorney, and that he had asked for an executive session with the Council to find out whether or not people were satisfied with the current agreement. Subsequent to that, the Finance Committee had a meeting directed by Council, to talk with the attorney. Maybe it is semantics. The Finance Committee settled on a term. Following the meeting with the Finance Committee, but before the Council could come back together; Mayor Matthes came back with an agreement. This prompted the discussion of who had the authority to negotiate a contract. Councilmember Powers said this is the first time this issue has come up. She said the Finance Committee has negotiated contracts before, and it has worked well. She hates to see the Mayor and the Council at loggerheads about this. Mayor Matthes stated it is not the Council's place to negotiate the contract; it is the Mayor's place. He will not entertain a motion that overrides the Mayor's responsibility to negotiate a contract, but he will listen to what they have to say. Councilmember Powers said she thinks maybe the Mayor is looking at the attorney as an employee, but he serves the whole council. She does not look at him as an employee. In response to Councilmember Putaansuu, City Attorney Jacoby said that it is the council's meeting and agenda, and they don't need the Mayor's authority to make a motion. Councilmember Putaansuu called for the question. Councilmember Chang said he was interested in the dollar figure, and said they should be discussing the fiscal impact. He is comfortable with both contracts. He would prefer to talk about the comfort level that the Council has with the City Attorney. Councilmember Putaansuu said that the rate of $170 was well below market, so they wanted to lock in that rate. Councilmember Childs CALLED for the question. Upon vote, motion passed unanimously. Upon vote, the main motion failed with one affirmative vote and six dissenting votes. Councilmember Clauson, Powers, Putaansuu, Colebank, Childs, and Lucarelli cast the dissenting votes. Councilmember Powers said this does not resolve the disagreement of who negotiates the contract. She would like resolution. Councilmember Clauson MOVED and Councilmember Putaansuu seconded that the City direct the Finance Committee and the Mayor to sit down with the Minutes of December 11, 2012 Page 13 of19 City Attorney and work out the terms of a three year agreement at the $170 rate that the Finance Committee recommended. Upon vote, the motion passed unanimously. Councilmember Clauson read into the record a proposed amendment to the current contract that would extend Contract No. 001-09 to January 31, 2013. Councilmember Clauson MOVED and Councilmember Powers seconded the motion to approve the contract amendment to extend legal services until January 31,2013 with all other terms and conditions of the contract remain in full force and effect. Upon vote, the motion passed unanimously. L. Approval of Amendment No. 2 to Contract No. 011-10, Authorizing the Mayor to Extend the lnterlocal Agreement with the Department of Enterprise Services for Co-Op Purchasing City Clerk Rinearson presented the staff report, noting the City has been a participating member of the State's Purchasing Cooperative. In 2011, the Department of General Administration became a part of the Department of Enterprise Services (DES), which now oversees the Co-Op program along with the State's Information Services, Personnel, State Printer, and Office of Financial Management. The Department of Enterprise Services is a newly formed department under ESSB 5931. Because this is a newly formed Department and oversees several other State agencies, the City is being offered a six month extension for a fee of $500, which is consistent with prior year fees. The benefits of being a purchasing cooperative member have not changed. The City will still have access to hundreds of state contracts; and this amendment will allow DES time to consider what changes may need to be made to the program, if any. Whether this amendment is approved or not, the City remains liable to pay any unpaid balances that were/have been used during the current membership period. Councilmember Chang MOVED and Councilmember Putaansuu seconded the motion to approve Amendment No.2 to Contract No. 011-10, authorizing the Mayor to extend the Interlocal Agreement for the State's Purchasing Cooperative Program with State of Washington, Department of Enterprise Services in a total contract amount of $500, with an expiration date of June 30, 2013. Upon vote, the motion passed unanimously. M. Approval of Treasurer's Checkbook Councilmember Putaansuu said that the City will not be holding another Council Meeting before the end of the year and the City needs to conduct business and issue payroll. Councilmember Putaansuu MOVED and Councilmember Clauson seconded the motion to authorize the Treasurer to honor claims and issue warrants and Minutes of December 11, 2012 Page 14 of19 payroll with approval at the January 8, 2013, meeting, providing no warrants shall exceed $35,000. Upon vote, the motion passed unanimously. N. Approval of Contract No. 003-13, Authorizing the Mayor to Execute a Contract with Kitsap Economic Development Alliance for Economic Development Services City Clerk Rinearson presented the staff report, noting, annually, the City contracts with Kitsap Economic Development Alliance (KEDA) whose primary purpose is to promote Kitsap County's primary job base and to integrate its economy into the national and world economies. During the 2013 Preliminary Budget discussions, the Mayor requested the City's payment to KEDA be decreased to $5,000 and that amount was added to the 2013 budget. This is a one year contract that will expire on December 31, 2013. Councilmember Childs MOVED and Councilmember Colebank seconded the motion to approve Contract No. 003-13, authorizing the Mayor to execute a contract with Kitsap Economic Development effective January 1, 2013 to December 31, 2013 in the amount of $7,500. Councilmember Childs said he wants to amend the proposed contract from $5,000 to $7,500. He feels the cuts to KEDA are so extreme and are not warranted based on the excellent job they do. Councilmember Putaansuu asked what the funding source would be for the additional $2,500. In response to Councilmember Putaansuu, City Treasurer Martin said the ending cash balance is estimated at $301,679, but does not recommend taking the funds from there. However, is it your authority to do so. Councilmember Putaansuu MOVED and Councilmember Clauson seconded the amended motion to take the funds out of ending cash balance. Upon vote, the motion passed unanimously. Councilmember Putaansuu reminded the Council that the City has a problem at the library. They were going to install new carpet and the floor has asbestos. If they don't replace the carpet, someone could trip and fall creating it our liability. In response to Councilmember Chang, City Treasurer Martin explained what ending cash balance was. He also said that the Council had adopted a finance policy that stated the minimum amount the City should have in the ending cash balance is $500,000. Upon vote, the main motion passed as amended unanimously. Minutes of December n, 2012 Page 15 of 19 0. Approval of Contract No. 005-13, Authorizing the Mayor to Execute a Contract with Progressive Landscape LLC, for Parks Maintenance Public Works Director Dorsey presented the staff report, noting the City Public Works Department requested cost proposals from five (5) local companies from the City's 2012 Small Works Roster for the 2013 Parks Maintenance Contract, with the scope of work including; the Roundabout Park, the waterfront park Lots #3 and #4, the flower beds behind the Library, Etta Turner Park, the flag pole triangle located at Bay /Kitsap Street and Employee .Parking Lot #8 on Prospect Street. Bids received were as follows: Progressive Landscapes, LLC Team Innovative Services, Inc. Kitsap Outdoor, Inc J&M Garden Maintenance Full Throttle Commercial Landscaping, LLC $10,985.98 (incl. tax) No bid received No bid received No bid received $17,593.20 (incl. tax) Upon review by staff, it was determined that Progressive Landscapes, LLC was the lowest qualified bidder with a bid of $10,985.98 (including tax). In response to Councilmember Powers, Public Works Director Dorsey said Bill Thiele and summer staff, which has been reduced from four to two, are taking some areas. Other facilities have been performed under contract for the last 3-4 years. Councilmember Putaansuu said Public Works staff gets pulled in too many different directions. The only problem is the bid is higher than what is budgeted. He will have to manage it in the budget category by reducing other things. Things have never looked better with these services. In response to Councilmember Powers, Public Works Director Dorsey clarified who is responsible for each lot for maintenance with the Port of Bremerton. Councilmember Powers MOVED and Councilmember Putaansuu seconded the motion to authorize the Mayor to execute Contract No. 005-13, with Progressive Landscapes, LLC in an amount not to exceed $10,985.98 for the 2013 Parks Maintenance Services. Upon vote, the motion passed unanimously. P. Adoption of Ordinance No. 024-12, Adopting the 2013 Budget City Treasurer Martin presented the staff report, noting the Mayor of Port Orchard completed and placed on file a proposed budget and estimate of the amount of the monies required to meet the public expense, bond retirement and interest, reserve funds, and expense of the government of the City for the fiscal year ending December 31, 2013. As required, the City Council held a Public Hearing on revenue sources for the coming year's budget, including consideration of possible increases in property tax revenue. The Finance Minutes of December 11, 2012 Page 16 of19 Committee met independently to study the proposed budget; and held budget interviews that required the presence of department heads. Input was sought from the full Council. A final hearing seeking public input on the proposed budget was held November 27, 2012. The 2013 Budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City of Port Orchard for the purposes described in the 2013 Budget; and the estimated expenditures in each fund are all necessary to carry on the government of the City for fiscal year 2013. The 2013 Budget reflects department head requests, Mayor's priorities, citizen comment, Finance Committee, and City Council input and modifications. Councilmember Clauson MOVED and Councilmember Putaansuu seconded the motion to adopt Ordinance No. 024-12, approving the 2013 budget. Councilmember Putaansuu MOVED and Councilmember Chang seconded the motion to amend the motion to fund $20,000 from the Real Estate Excise Tax fund to pay for asbestos removal from the library. Upon vote, the motion passed unanimously. In response to Mayor Matthes, Public Works Director Dorsey explained the estimate of $20,000 came from a company that did prior work with the City. The Library District is the one who obtained that estimate. Treasurer Martin added upon approval this action takes a change in the ordinance and this will result in movement from one fund to another fund. Councilmember Colebank feels his concerns about KEDA and the attorney contract have been taken care of. He is unhappy about the Bethel Road funding. The biggest selling point for one of the members on the Annexation Committee was that the City was going to set aside money to fund the project. It is a matter of good will and our word that concerns him. In addition, he understands Councilmember Putaansuu position of the Finance Committee, but wanted to express what people are feeling about Bethel. His final concern was the Lodging Tax Advisory Committee allocations. He didn't think the recommendation supported the Police Department or the Festival of Chimes and Lights. Without that money, the festival may not happen next year. Councilmember Childs said he is concerned about the Lodging Tax Advisory Committee recommendation, and does not like using reserves to balance the allocations. The reserves are for when unforeseen items come up. Unforeseen expenditures have occurred every year that he has served on the Council. For that reason alone, he will not vote for the budget in protest. Councilmember Putaansuu said the budget process was painful due to the significant reduction on property tax revenues from the declining home values in the community. Minutes of December 11, 2012 Page 17of19 Throughout the process he spoke to Bethel Road, but the choice became people and service. The people who annexed into the City did so because they wanted a higher level of service from what they were getting from the County. He agrees that the City has to tackle Bethel Road, but priorities of police protection and other services are more important. To fund that road this year, the City would have had to cut the level of service that we are providing to our citizens, and he couldn't support that. Councilmember Clauson said the Bethel Road set aside was a major issue, but the committee was unable to pull it together. It is the committee's goal to make it a priority next year. He is concerned that there is zero paving in the 2013 budget. That is equally as troubling as Bethel, because if the City does not keep up on repaving, we will have the same problem throughout the City's roads as we have on Bethel Road. This is not a wonderful budget. It is a budget that will get us through 2013 without a lot of whistles and bells. He also believes that this budget incorporated the consensus reached at Work Study to use the reserves for Lodging Tax Advisory Committee funds. Mayor Matthes said it was not an easy budget this year. The City's revenues are down. There were several employees who made sacrifices, for example in the Planning Department two employees have agreed to a job sharing arrangement at reduced hours for each of them. He appreciates their commitment to help the City during these troubled times. The only other thing he is not happy about is that in the preliminary budget, he did not have $195,000 in his budget for design work of the McCormick Woods roundabout. He feels it is premature. The Council has elected to put that in the budget. He has not had all his questions answered on how that can work. He agrees with Councilmember Clauson, it is a budget we can live with, but not a budget any of us like. Councilmember Lucarelli is hung up on the Lodging Tax Advisory Committee situation. They worked it again where ED /Tourism and Cedar Cove Association gave up their allocations and kept the $10,000 reserve. She understands that the rest of the Council feels this is a done deal, but she is not happy with the allocations, so she will vote no as result of the Lodging Tax Advisory Committee distribution. Councilmember Powers recalled the consensus at the Work Study Session to take the $10,000 set aside to pay for the police overtime. She thought more money was allocated to Chimes and Lights. Those were the two biggest issues, and if the money was not taken from the set aside, then we would have to reduce the allocations to all of the other entities that are going to receive money, which would not have been the best option. In response to Councilmember Powers, Councilmember Clauson said the Lodging Tax Advisory Committee allocations are in the budget and will be approved when the budget is adopted. Councilmember Chang said he is not happy with the budget, but he commends the Finance Committee for spending hours working on it. He wished there was more money from hotel/motel tax revenues, so the Council would not have such divisive discussions. He Minutes of December 11, 2012 Page 18 of19 hopes tourism will increase next year, which would in turn increase that revenue fund. He is going to support this budget. Upon vote, the main motion, as amended, passed with four affirmative votes and three dissenting votes. Councilmembers Childs, Colebank, and Lucarelli cast the dissenting votes. 8. COMMI'ITEE REPORTS Councilmember Clauson reported the next Finance Committee meeting is scheduled for January 10, 2013. Councilmember Childs reported the next Economic Development/Tourism Committee meeting is scheduled for December 12, 2012 at City Hall at 3:30 p.m. Councilmember Clauson complimented the committee on doing a wonderful job at this year's Festival of Chimes and Lights. It was excellent. Councilmember Putaansuu had nothing to report for the Utility Committee and Sewer Advisory Committee. He would like to reopen discussions at the January Work Study on Form of Government-City Governance. Councilmember Powers reported on the Public Properties Committee meeting held this morning. One issue is the intersection of Rockwell and Bay Street. Public Works Director Dorsey has done some research with the State Department of Transportation (DOT), because this is a State highway. The other agenda item was presented by Fred Olin, and he wanted to put a large sign on Highway 16 to honor an individual of national fame. He is going to research more with the DOT. The committee did not think it was a good idea and didn't want to go further with it. Councilmember Chang said it was a divided committee. He thought the idea had merit. The next meeting is January 8, 2013. Public Works Director Dorsey said he is looking at the intersection of Rockwell and Bay Street. It is a life safety issue. During the construction of the Port of Bremerton park expansion, there will be a traffic control 30-45 days. The turn lane will have the westbound traffic lane. During that traffic control plan, the left turn from Rockwell to Bay Street will be restricted. It will also serve as an interim introduction to a permanent situation that he is working on with DOT to continue to not allow left turns onto Bay Street from Rockwell. In response to Councilmember Clauson, Public Works Director Dorsey said there have been accidents and a lot of near misses. They get calls all the time from people complaining about the intersection. Councilmember Lucarelli reported the Festival of Chimes and Lights was wonderful in spite of the weather. Many people made that possible, and she thanked all of the employees, community volunteers, and sponsors for all of their efforts and contributions. Minutes of December n, 2012 Page 19 of19 Councilmember Colebank reported he has a PSRC Transportation Board meeting this December 13, 2012, in Seattle. 9· MAYOR'S REPORT The Mayor Matthes reported on the following: • The summary of the Town Hall Meeting is on the website. Another Town Hall Meeting will be held in March. • He thanked the members of the Library Board, Fran Olin and Virginia Collins, for their service. He thanked Jonathan Wilson for serving on the Design Review Board, and Robert Baglio for serving on the Building Board of Appeals. 10. REPORT OF DEPARTMENT DIRECfORS Development Director Weaver announced this is his last Council Meeting. He has taken another job to expand his career. It has been a privilege to work with the community. Mayor Matthes thanked Development Director Weaver for his years of service and said he has set the bar high. It will be difficult to find someone to fill the position at the same level. The Council applauded Development Director Weaver in appreciation for what he has done for the City. City Clerk Rinearson reminded the Council and Mayor about the following upcoming meetings that have been noticed: Representative Seaquist, December 14, 2012, at 3:00p.m.; KEDA Fourth Quarter Meeting December 13, 2012, at 3:00 p.m. followed by a social hour at Kitsap Bank; and the Council Holiday Tour December 18, 2012, at 6 :oop.m. 11. CITIZENS COMMENTS There were no citizen comments. 12. EXECliTIVE SESSION There was no executive session. 13. ADJOURNMENT m..-i¥~-WJ yor Matthes adjourned the meeting. ''''""""'''~ ,,,~o~\T OR.Jtz~ 5< '\ ••• ···'"~ [10~ .:-~ ':··~~o~~,..~1h~ -·/ " ~· ,v /? R'1/f ~ --=-"'~"-""""'----'-+-''-""'=-...__ _____ -----il.:-~· t..P f'.ot~~.t('\ :.&:?:?:~' -z~ ~ L///4filf41 '"<.) lt .... • ' Brandy Rinearson, CMC, City Clerk i !--s£AL.,l'ii!t othy C. Matthes, Mayor \ ~~ :•: '='d'. "'. ~: "; ~ t '. ··l:f..l .. , fl.~· ~ ··""'"~ ''··~~'-P..•e-.o;r•~!· ..,.,,~~ ,,,,l ,,. w ~ 11\\'' ' •t.rnilu•' '