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CC: 121703SPECIAL/REGULAR COUNCIL MEETING DECEMBER 17, 2003 _ Mayor Kordonowy opened the special City Council meeting at 6:00 PM with Council members Curtis, Knobloch, Pollock, Rolfes, Vancil, Vann and Wooldridge present as well as City Administrator Walton, Directors Eells, Frazier and Witt, Interim Police Chief Haney, and City Attorney Kaseguma. The regular meeting began at 7:00. City Clerk Kasper monitored the tape of the meeting. ITEMS DISCUSSED 1. PRESENTATIONS: A. AB 0667 OPEN SPACE COMMISSION PROPERTY ACQUISITION RECOMMENDATION B. AB 0665 RESOLUTION NO. 2003-57, DESIGNATING THE CITY'S OFFICIAL NEWSPAPER 2. DISCUSSION ITEMS: A. AB 0629 ORDINANCE NO., 2003-39,2004 FINAL BUDGET 3. ORDINANCES: 2 N READING: AB 0661 ORDINANCE NO. 2003-54,2003 BUDGET AMENDMENTS B. DISCUSSION ITEMS (CONTINUED): B. AB 0631 ORDINANCE NO. 2003-42, UTILITY RATE INCREASE C. AB 0630 ORDINANCE NO. 2003-43, CAPITAL FACILITIES PLAN D. AB 0620 RESOLUTION NO. 200349, CASH RESERVES E. AB 0663 2004 GOALS & OBJECTIVES UPDATE F. CITY COUNCIL STANDING COMMITTEE MEMBERSHIP 4. CITY COUNCIL REPORTS: 5. MAYOR'S REPORT 6. ADDITIONS/DELETIONS TO THE AGENDA: 7. ORDINANCES: 3RD READING AB 0643 ORDINANCE NO. 2003-52, DESIGN REVIEW BOARD 8. CONSENT AGENDA: A. VOUCHER & PAYROLL APPROVAL B. MINUTES SPECIAL CITY COUNCIL BUDGET WORKSHOP DECEMBER 3, 2003 C. CONTINUED CLOSED RECORD CITY COUNCIL MEETING (THE SUMMIT AT BLAKELY HARBOR) DECEMBER 4,2003 D. AB 0606 PROJECT ACCEPTANCE & FINAL CHANGEORDER, NORTHERN CON-AGG (IRENE PLACE WATER MAIN PROJECT) - $38,310 E. AB 0666 PROFESSIONAL SERVICES AGREEMENT, R2 RESOURCE CONSULTANTS (COOPER CREEK CULVERT FISH ENHANCEMENT PROJECT — HEAD OF THE BAY) - $24,600 F. AB 0669 PROFESSIONAL SERVICES AGREEMENT, JUSHNE, STRINGER & HILL (OPEN SPACE COMMISSION) - $10,000 G. AB 0671 INCARCERATION AGREEMENT, KITSAP COUNTY SHERIFF 9. RECESS 10. PUBLIC COMMENT: A. ITEMS NOT ON THE AGENDA ORDINANCES -2 No READING: B. AB 0614 ORDINANCE NO. 2003-37, HISTORIC PRESERVATION 11. ORDINANCES — 3RD READING: B. AB 0509 ORDINANCE NO. 2003-03, ZONING CODE AMENDMENT — RESIDENTIAL ZONES (CONDITIONAL USE PERMIT) 12. FAREWELL CEREMONY 13. SWEARING IN CEREMONY 14. ADJOURNMENT 1. PRESENTATIONS: A. AB 0667 OPEN SPACE COMMISSION PROPERTY ACQUISITION RECOMMENDATION Open Space Commissioner Sutton explained the Open Space Commission (OSC) has made 9 recommendations for the purchase of open space in the past 2 years, all of which have been approved by the City Council. He introduced fellow commissioners and provided a brief history of the properties acquired for open space ($4.3 million of the $8 million approved by voters has been spent thus far). He explained the property being recommended this evening meets all the components of open space and is being offered by Lovell & Associates at a purchase price below market value. Commissioner Macchio described the location and features of the property which is adjacent to the Shel Chelb estuary and the Baker Hill trail easement. She identified amenities of the property which include scenic views of Rich Passage, thickly wooded areas, passive recreation opportunities, historic value, waterfront and trail access and protection from development. She explained the property is offered at $285,000 or 2/3 market value and that the owners have donated $145,000. She recommended purchase of the property that includes scientific education potential and a wildlife habitat. Gail Cool, Shel Chelb estuary, thanked members of the OSC, City Council and his wife Marja of Lovell & Associates and explained the public is receiving a very valuable piece of property. SPECIAL/REGULAR COUNCIL MEETING DECEMBER 17, 2003 On motion by Councilmember Curtis, second by Councilmember Wooldridge, the recommendation by the Open Space Committee to purchase the property described as Shel Chelb Estuary was unanimously accepted and the Mayor was authorized to sign the purchase agreement. B. AB 0665 RESOLUTION NO. 2003-57, DESIGNATING THE CITY'S OFFICIAL NEWSPAPER Following discussion by the City Council regarding increasing the visibility of legal notices via electronic notification, the circulation of available newspapers, the criteria needed to determine whether it is necessary to designate an official newspaper annually and the process to use, discussion of this item was tabled to the first of the year. 2. DISCUSSION ITEMS: A. AB 0629 ORDINANCE NO., 2003-39,2004 FINAL BUDGET The City Council discussed the issue of Bainbridge Performing Arts (BPA) funding allocation in the upcoming year specifically amending the budget in January to finance some of BPA's requests. Councilmember Knobloch announced the following final budget changes recommended by the Finance Committee: A)Add section to budget ordinance to read the amount shown for legal and litigation expenditures shall not be spent for any other purpose; B)Add a section to the budget ordinance to read the Mayor and administration may authorize transfer of budget authority within a department as needed but may not transfer budget authority from one department to another without the prior approval of the City Council; C)Legislative contracts for professional services at $12,000 and communications at $21,000 be carried over, $20,000 be authorized for undesignated professional services in Legislative Department, $50,000 for contract amount to be carried over for the Manitou Beach Saltwater marsh restoration, $100,000 be added to the budget for Winslow Way reconstruction any undesignated amount to be transferred to the contingency reserve. Council Chair Rolfes moved to approve Ordinance No. 2003-39, the Final 2004 Budget, including changes proposed by the Finance Committee. Her motion was seconded by Councilmember Vancil. There was discussion regarding the amount remaining in the contingency fund if changes are approved to which Director Eells responded $609,500 and that Item E, Manitou Beach Saltwater Marsh restoration will actually be $60,000 carryover, whether Items C- F have received majority support, that carryovers happen every year in January and a number of the items in C -F are pre-existing contracts with funds remaining and that the only read additions are $100,000 for Winslow Way and $20,000 for professional services. The motion made by Council Chair Rolfes and seconded by Councilmember Vancil was approved with Councilmembers Curtis, Knobloch, Pollock, Rolfes, Vancil and Wooldridge in favor; Councilmember Vann opposed. 3. ORDINANCES: 2"o READING: AB 0661 ORDINANCE NO. 2003-54,2003 BUDGET AMENDMENTS On motion by Councilmember Knobloch, second by Councilmember Wooldridge, Ordinance No. 2003-54, 2003 Budget amendments, was unanimously approved and the three reading requirement waived. 4. DISCUSSION ITEMS (CONTINUED): A.. AB 0631 ORDINANCE NO. 2003-42, UTILITY RATE INCREASE On motion by Councilmember Knobloch, second by Councilmember Wooldridge, Ordinance No. 200342, Utility Rate Increase, was unanimously approved. Director Eells explained the ordinance applies only to commercial users who will receive a notice of the rate increase in April billings. B. AB 0630 ORDINANCE NO. 200343, CAPITAL FACILITIES PLAN On motion by Councilmember Knobloch, second by Councilmember Pollock, Ordinance No. 2003-43, Capital Facilities Plan, AB 0630, was unanimously approved and the Finance Director was authorized to correct the Capital Facilities Plan to conform with the approved 2004 budget and move the Winslow Way — Ericksen to SR 305 project from 2004 to 2005. C. AB 0620 RESOLUTION NO. 200349, CASH RESERVES On motion by Councilmember Knobloch, second by Councilmember Wooldridge, Resolution No. 200349, Cash Reserves, was unanimously approved as amended deleting the following language located on Pg. 1, paragraph 3, under "The city Council of the City of Bainbridge Island, Washington, does resolve as follows: The City shall budget within its Current Expense Fund a sub -fund designated as its Equipment Reserve. Each annual b"48t shall _aa the Equipment Reses,e an amount that is not i r. r. SPECIAL/REGULAR COUNCIL MEETING DECEMBER 17, 2003 D. 0663 2004 GOALS & OBJECTIVES UPDATE Councilmember Knobloch explained no changes have been received for the Goals and Objectives and that the Cost of Growth has been transferred to the Executive Department to which Councilmember Wooldridge suggested the Goals and Objectives be approved following review at a Council retreat. On motion by Councilmember Knobloch, second by Councilmember Pollock, the 2004 Goals & Objectives were unanimously approved as amended. E. CITY COUNCIL STANDING COMMITTEE MEMBERSHIP Council Chair Rolfes moved to continue current City Council Standing Committee positions held by the 4 remaining Councilmembers for the fust 4 weeks until standing committee assignments are formally established, that committee meetings be held at the same time and day and that incoming Councilmembers replace outgoing Councilmembers on the standing committees. Councilmember Wooldridge seconded the motion, which was unanimously approved. F. CITY COUNCIL REPORTS: Community Relations Committee Councilmember Vancil reported this year the major project for the committee was internal and external communications which led to the adoption of the Citywide Communications Plan, one of the Goals & Objectives. She stated the committee will continue working on the following projects in 2004: Historic Preservation Ordinance, Cooperative Workshop with the City and Chamber of Commerce and will plan for a disbursement forum. She thanked committee members and Interim Police Chief Haney and Pattie Ritchie for their hard work. Hotel Motel Tax Funding Allocations Councilmember Vann reported this year's Hotel/Motel Tax recipients will receive approximately $78,000, which is frugal compared with last year's $100,000. She explained applications received need to focus on overnight stays and tourism. She identified the following recipients and thanked the committee: — Marc Anderson — Signs for Parks $ 500.00 Bainbridge Island Arts & Humanities Council — Newsletter 4,549.00 Bainbridge Island Arts & Humanities Council — Garden Tour 7,520.00 Chamber of Commerce — Kiosk staffing 4,000.00 Chamber of Commerce — Promotions 2,500.00 Chamber of Commerce — Kiosk Operations 20,000.00 Bainbridge Island Downtown Association — Concierge 2,250.00 Bainbridge Island Historical Society — Signs 800.00 & Promotions 2,700.00 Bainbridge Island Lodging — Co -Op Marketing 14,500.00 Co -Op Brochure 8,000.00 Daigle Design — Ferry Terminal Signs 5,852.00 Kitsap Peninsula Visitors & Convention Bureau 5,000.00 Total $78,171.00 Councilmember Vann moved to approve the Hotel/Motel Tax funding allocations listed above. Her motion was seconded by Councilmember Wooldridge and unanimously approved. 5. MAYOR'S REPORT Mayor Kordonowy reported there are three changes to the Legal Services contract for 2004, which includes office hours at City Hall, attendance at Directors meetings, City Council meetings and availability of appointments. Councilmember Curtis asked that the junior partners be clarified to which City Attorney Kaseguma answered it will be worked out. On motion by Council Chair Rolfes, second by Councilmember Pollock, the Mayor was unanimously authorized to sign the Legal Services agreement with Inslee, Best, Doezie & Ryder. Mayor Kordonowy reported that Hearing Examiner Pro Tem Baker has served the City well and that a panel interviewed all prospective Hearing Examiners. She distributed the resume for Meredith Getches and recommended that she become the Hearing Examiner for Bainbridge Island to provide credibility to the Planning Department and the City. Councilmember Pollock explained Ms. Getches comes highly recommended, is well respected with decisions that stand up to appeals. SPECIAL/REGULAR COUNCIL MEETING DECEMBER 17, 2003 On motion by Councilmember Pollock, second by Councilmember Knobloch, the Mayor was unanimously authorized to negotiate a contract with Meredith Getches as Hearing Examiner Protein for 1 year. There was a brief discussion regarding Ms. Getches' understanding that she will serve as Hearing Examiner pro tem for 1 year. 6. ADDITIONS/DELETIONS TO THE AGENDA: The year-end salary adjustment for the Human Resources Administrator was added to the consent agenda. 7. CONSENT AGENDA: A. VOUCHER & PAYROLL APPROVAL B. MINUTES SPECIAL CITY COUNCIL BUDGET WORKSHOP DECEMBER 3, 2003 C. CONTINUED CLOSED RECORD CITY COUNCIL MEETING (THE SUMMIT AT BLAKELY HARBOR)DECEMBER 4, 2003 D. AB 0606 PROJECT ACCEPTANCE & FINAL CHANGEORDER, NORTHERN CON-AGG (IRENE PLACE WATER MAIN PROJECT) - $38,310 E. AB 0666 PROFESSIONAL SERVICES AGREEMENT, R2 RESOURCE CONSULTANTS (COOPER CREEK CULVERT FISH ENHANCEMENT PROJECT — HEAD OF THE BAY) - $24,600 F. AB 0669 PROFESSIONAL SERVICES AGREEMENT, JUSHNE, STRINGER & HILL (OPEN SPACE COMMISSION) - $10,000 G. AB 0671 INCARCERATION AGREEMENT, KITSAP COUNTY SHERIFF On motion by Councilmember Curtis, second by Councilmember Pollock, the consent agenda as listed above with the addition of a year-end salary adjustment for the Human Resources Administrator, was unanimously approved. Voucher & Payroll Approval Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that has been made available to the Council. As of this date December 17, 2003, the Council, by unanimous vote does approve for payment those vouchers included in the above list and further described as follows: Prepaid check numbers 79352 through 79359 in the amount of $42,748.27, regular run check numbers 79360 through 79581 in the amount of $655,995.55 for a total amount of $698,743.82 and Payroll Warrants consisting of check numbers 055662 through 055804 in the total amount of $231,420.42. 9. RECESS The regular City Council meeting of December 17, 2003, was adjourned for a 2 -minute recess. The meeting reconvened following the recess with the aforementioned Mayor and City Councilmembers present. 10. PUBLIC COMMENT: A. ITEMS NOT ON THE AGENDA Mickey Molnaire, 12580 Vista Drive NE, referring to Hotel/Motel Tax Funding stated her thanks to the City and explained she is looking forward to working with the City Council on the Round Table next year. Charles Schmid, Association of Bainbridge Communities (ABC), stated ABC was instrumental in cleaning up the Vincent Road landfill site and recommended that the City consider a Master Plan for the entire 40 acre site. Vince Mattson, Green Spot area of Murden Cove, thanked Councilmembers Curtis, Pollock and Wooldridge for serving the community well. Anna Oeste, 8997 Day Road, expressed support for agriculture, open space and the view corridor. She thanked Islanders who support Island farmers. Dave Henry thanked Councilmembers for their efforts, discussed technology, ethics and grant funding, specifically Hotel/Motel tax funding. He expressed concern that a loophole has been written into the RCWs regarding the ability of members sitting on the Hotel/Motel Tax Funding Committee to vote on their own applications. Mayor Kordonowy explained there will be a round table held at the beginning of the year to discuss Hotel/Motel Tax funding. Ian Bentryn, 4674 Crystal Springs Drive, thanked Councilmembers Curtis, Pollock and Wooldridge for their years of service to the community. He stated concern about the proposed move of his father's winery, the delay in processing the permit to construct a new winery which is causing his father great distress and asked for assistance from the Mayor and City Council. SPECIAL/REGULAR COUNCIL MEETING DECEMBER 17, 2003 —11. ORDINANCES -2 No READING: B. AB 0614 ORDINANCE NO. 2003-37, HISTORIC PRESERVATION Special Projects Assistant Warren stated the proposed ordinance will create a local historic register and will qualify Bainbridge Island as a Certified Local Government. Terry Bergren, 1730 Parkview Drive, encouraged approval of the proposed ordinance. She stated 18.76.040D, items 7 — 16, provides no mention of administration which should be included in 18.76.050. She stated it is not necessary to include a public agency, that any member of the community can nominate a property. Charles Schmid, 10677 Manitou Park Boulevard, stated this is an important ordinance that should include stronger regulations in the future between Sections B & C regarding City amenities and FAR bonuses. The proposed ordinance was referred back to the Community Relations Committee for its P Reading ORDINANCES — 3RD READING: C. AB 0509 ORDINANCE NO. 2003-03, ZONING CODE AMENDMENT — RESIDENTIAL ZONES (CONDITIONAL USE PERMIT) On motion by Councilmember Pollock, second by Councilmember Vancil, Ordinance No. 2003-03, Zoning Code Amendment, Residential Zones (Conditional Use Permit), was unanimously approved. 12. FAREWELL CEREMONY Council Chair Rolfes introduced Ted Spearman who thanked Councilmember Pollock for the gift of devotion he has given the community. Councilmember Pollock stated the past 4 years have proved to be some of the best years of his life. He stated his enjoyment at having served with this Council through sometimes tough times but that the experience was ultimately positive. Council Chair Rolfes introduced past Mayor Dwight Sutton who stated Councilmember Wooldridge is the epitome of a public servant who has done a tremendous job for the community. He stated Councilmember Wooldridge was always prepared, had always done his homework, was prepared to listen and be flexible, was responsible to his colleagues and the Mayor and helped form 1% for the Arts. Councilmember Wooldridge stated it has been a great pleasure to serve the community for the past 8 years because it has been rewarding and fun and has been an opportunity for personal growth. Council Chair Rolfes presented Councilmember Curtis with bouquets of flowers from her family and from the City, she introduced Past Councilmember Murray who stated Councilmember Curtis was very involved with the Helmet Law and the Sign Ordinance and fun to work with. She stated her admiration of Councilmember Curtis's ability to defuse an uncomfortable situation, who always listened, was thoughtful and effective and has accomplished much and should look back on her service to the citizens of Bainbridge Island with pride. Councilmember Curtis stated that she has felt working with the many people involved with the City has been a lot of work but many of those people feel to her like family. There was a rousing round of applause. 13. SWEARING IN CEREMONY Municipal Court Judge Holman administered the Oath of Office to Councilmembers Llewellyn, Rolfes, Scales and Tooloee. 14. ADJOURNMENT The regular City Council meeting of December 17„ 2003, was unanirno adjourned at 9:0 PM. f DARLENE KORDONOWY, Mayor ATTT /AUTHENT -ANTE: SUSAN P. KASPER, City Clerk