REGULAR CITY COUNCIL MEETING MINUTES  OCTOBER11,2016  ITEMS DISCUSSED  1. CALLTO ORDER/ROLL CALL/ /PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTCITY MANAGER'S REPORT 4. COUNCILMEMBER ANNOUCEMENTS 5. PUBLIC COMMENT 6. UNFINISHED BUSINESS  2. ACCEPTANCE ORI MODIFICATION OF THE. AGENDA/CONFLICT OF INTEREST DISCLOSURE  A. ORDINANCEI NO.2016-06, REVISING AQUACULTURE REGULATIONS AS A LIMITED AMENDMENT B. PROCESS FOR COUNCIL REVIEW OF ORDINANCE NO.2016-29, COMPREHENSIVE PLAN UPDATE, C. 2017-2018 PROPOSED BUDGET DISCUSSION: PLANNING AND COMMUNITY DEVELOPMENT H. ORDINANCE NO.2016-23, SETTING1 THE STORM AND SURFACE WATER MANAGEMENT RATES FOR  TO THE SHORELINE MASTER PROGRAM (SMP), AB 16-046 - PLANNING  AB 15-108 - PLANNING 7. NEW: BUSINESS [MOVED UP] 2017, AB 16-108-FINANCE 8. UNFINISHED BUSINESS (CONTINUED)  D. 2017-2018 PROPOSED BUDGET DISCUSSION: POLICE DEPARTMENT  9. NEW: BUSINESS  A. AMENDED INTERLOCAL AGREEMENT WITH BAINBRIDGE ISLAND SCHOOL DISTRICT FORI EXTRA B. MILLER ROADI NON-MOTORIZED DESIGN CONTRACT, AB 16-145-E PUBLIC WORKS C. ANNUAL STORMWATER PRESERVATION CONTRACT AWARD AND! BUDGET AMENDMENT, D. ORDINANCE NO.2 2016-26, 2017-2022 CAPITAL IMPROVEMENT PLAN, AB 16-110- - PUBLIC WORKS E. POLICE VEHICLE# #192 REPLACEMENT AND! BUDGET AMENDMENT, AB 16-147- - PUBLIC WORKS F. ORDINANCE NO. 2016-21, PROVIDING FORI NO AUTOMATIC ANNUAL FEE. ADIUSTMENTTOTHE G. ORDINANCE NO. 2016-22, PROVIDING FORI NO AUTOMATIC ANNUAL FEE ADJUSTMENT TOTHE H. ORDINANCE NO.2016-23, SETTING THE: STORM AND SURFACE WATER MANAGEMENT RATES  DUTY POLICE SERVICES, AB 16-144- - POLICE  AB 16-146 - PUBLIC WORKS  CITY'S WATER UTILITY RATES FOR: 2017, AB 16-106-FINANCE CITY'S SEWER UTILITY RATES FOR: 2017, AB 16-107- - FINANCE FOR2017,A AB 16-108 - FINANCE (CONTINUED) A. CONSENT AGENDA COVER SHEET  10. CONSENT AGENDA  B. ACCOUNTS PAYABLE VOUCHER ANDI PAYROLL APPROVAL C. REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, SEPTEMBER27,2016 D. REGULAR CITY COUNCIL STUDY SESSION MINUTES, OCTOBER 4,2016  11. COMMITTEE REPORT TOWNSEND  A. LODGING TAX. ADVISORY COMMITTEB LIAISON NOTES, SEPTEMBER 27, 2016-COUNCIMEMBER B. UTILITY ADVISORY COMMITTEE LIAISON NOTES, SEPTEMBER: 28,016-COUNCILMEMBERTOWNSEND  12. REVIEW UPCOMING COUNCIL MEETING AGENDAS  13. FOR THE GOOD OF THE ORDER 14. ADJOURNMENT  1. CALLTOORDER/ROLL CALL/PLEDGE OF ALLEGIANCE 7:03P PM  Mayor Tollefson called the meeting to order at 7:03 PM with Councilmembers Blossom, Medina, Peltier, Roth and Townsend present. Councilmember Scott had an excused absence. City Clerk Lassoff monitored the recording of the meeting and prepared 2. ACCEPTANCE OR MODIFICATION OF THE. AGENDA/CONFLICT OF INTEREST DISCLOSURE  the minutes. Everyone stood for the Pledge of Allegiance.  Mayor Tollefson added Councilmember. Announcements following the City Manager's. Report.  MOTION: Agenda accepted as modified. TONSEND/ROTH: Motion carried 6-0.    REGULAR CITY COUNCIL MEETING MINUTES There were no conflicts ofi interest disclosed. 3. PUBLIC COMMENT 7:061 PM  OCTOBER11,2016  Dave Burnett, 600 Klickitat Place, voiced his concerns regarding the proposed overpass at Vineyard Lane.  Dominque Cantwell, 72141 NE Abies Drive, requested the City re-engage ina ai formal dialogue concerning cultural funding as part Mark Nichols, 121361 Kallgren Road, appealed tot the City to reverse the suspension of BIMC3.8.2 andi include funding in the Ann Wilson, 7679 Fletcher Bay Road NE, voiced her concern: regarding recent code violations in her neighborhood.  the biennial budgeting process before it's too late to do sO.  budget for the arts.  4. CITY MANAGER'S REPORT7:18 PM  City Manager Schulze reported on upcoming meetings and recent awards received by the City.  5. COUNCILMEMBER ANNOUNCEMENTS [ADDED] 7:21 PM Kitsap Heritage Families by the Kitsap County Historical Society.  Mayor Tollefson announced the family ofThomas and Christine Loverich will be honored later this week as one oft the 2016 Councilmember Peltier reported on the City's first annual Indigence Peoples' Day celebration which was held at City Hall last  evening.  6. UNFINISHED BUSINESS  A. ORDINANCE NO. 2016-06, REVISING AQUACULTURE REGULATIONS AS A LIMITED AMENDMENTTO Senior Planner Carr indiçated modifications proposed by City Council at the September 27 meeting have been incorporated. Douglas Steding, Miller, Nash Graham and Dunn Law Offices, indicated his firmi represents Cook Aquaculture! Pacific (formerly American Gold Seafoods). He reiterated their objection to a ban ofa any new net pen aquaçulture as well as plastics. Lisa Macchio shared a recent conversation she had with) Barbara Nightingale (former Department of Ecology SMP liaison). Mike Killian, 9551 S. Beach Drive, believed that expanding net pen aquaculture would be a disservice to all the residents on the  THE SHORELINE MASTER PROGRAM (SMP), AB 16046-PLANNING724 PM  Public Comment  south side not to mention what additional damage it would do to Puget Sound.  MOTION: Imove, in Applicability of Conditions, change the initial. sentence in 5.2.4.61 to read: "For compliance with this Program and the SMA, the Administrator PELTIERBLOSSOME Motion) failed 2-4 with Medina, Roth, Tollefson and Townsend MOTION: Imove, in Policies 5.2.2.4, remove the words "or minimize". so the language reads: "Locate new commercial aquaculture to avoid conflicts with public use and access ofthe shoreline and waters ofCity-ownedi tidelands ands shorelines designatedj for public MOTION: Imove, in Prohibitions. 5.2.3.5. to remove 'substantial" sO language reads: "Mechanical and/or hydraulic harvesting or other activities that involve substrate modification in existing kelp beds or in beds ofnative eelgrass (Zostera marina) and  shall apply condition ofapproval to any shoreline permit. "  dissenting.  use (e.g., Island Conservancy shoreline designations)." PELTIERTOWNSEND: Motion carried 6-0.  beds ofnative and non-native eelgrass. * PELTIERTONNSEND: Motion carried 6-0.  2    REGULAR CITY COUNCIL MEETING MINOTES  OCTOBER 11,2016  MOTION: Imove to remove non-quantifiable language in. 5.2.4.3. by deleting the word  "significant" in C. ands g.  The statement would then read: "Aquaculture shall not cause: g.Modfication oft the. substrate. " PELTIERTOMNSEND: Motion carried 6-0.  C. Conflicts with navigation, public access, and other water dependent uses,  MOTION: Imove toi remove the word "significantly" ins 5.2.5.1.c. The language would then read "Shellfish aquaculture use and development shall not interfere with navigation or access 10 adjacent waterfront properties or public recreation areas" andi in. 5.2.5.1.e "Floating and submerged aquaculture structures shall be locatedt to avoid interference with navigation. and the normal public use of the surface waters. " RESTATED MOTION: Imove, to remove the word significantly" in. 5.2.5.1.c. The language would then read "Shellfish aquaculture use and development. shall not interfere with navigation or access to adjacent waterfront properties or public recreation areas. MOTION: Imove to remove the words "or minimize" in 5.2.5.1.0. The language would then read "Floating and submerged aquaculture. structures shall be located to avoid interference with navigation and the normal public use ofthe surface waters. " MOTION: Imove that the City Council approve Ordinance. No. 2016-06 as amended.  PELTIERMOTION ITHDRANAND RESTATED  PELTIER/ROTH: Motion carried 6-0.  PELTIERTONNSEND: Motion carried6-0. MEDINA/PELTIER: Motion carried6 6-0.  B. PROCESS FOR COUNCIL REVIEW OF ORDINANCE NO. 2016-29, COMPREHENSIVE PLAN UPDATE, Joseph Tovar provided information on the legal and procedural requirements oft the Growth Management Act, next steps ini the  AB 15-108 - PLANNING7 7:44 PM  review process and the need for specific meeting dates going forward. City Council discussed the pros and cons of extending the deadline into 2017.  Public Comment  Michael Killian, South Beach Drive, Planning Commissioner, indicated 75-80% of the public comments received where included somewhere ini the document the commission willl be reviewing Thursday night. He assured the City Council that they did listen to Lisa Macchio, Planning Commissioner, felt the commission did some amazing work in a very short amount oft time. She shared the There was consensus that the City notify the Washington Statel Department of Commerce and ifit turns out the City needs more time we can let them know that. Staff was asked to develop a public notice which clearly lays out the process going forward. C.2017-2018 PROPOSED BUDGET DISCUSSION: PLANNING AND COMMUNITY DEVELOPMENT 8:17F PM Planning Director Christensen presented the following highlights: Department Summary responsibilities and organization), ALook at 2016 (legislative projects, building/land use/code enforcement trends, development: review process improvement study) and Looking Forward 2018-2018 (department improvements, staffing, 2016 Comprehensive Plan Update implementing actions and Councilmember Peltier requested staff provide a compact disc containing word versions of each element strikeoutaddtionsclean Mayor Tollefson asked ifthere was something that identifies developments as opposed to development ofi individual pre-existing  comments and tried to include as much as they thought made sense into thej plan. community's perception with rushing this through during the holidays.  multi-year work programs).  version).  lots versus subdivision development.  3    REGULAR CITY COUNCIL MEETING MINUTES  OCTOBER11,2016  Councilmember Peltier suggested one of the proposed new hires could be an: additional code enforcement position. Mayor Tollefson requested statistics specifically with regard to code compliance (time to respond, initial response and time until  claims are closed).  Mayor Tollefson recessed the meeting for a five-minute break.  7. NEW BUSINESS [MOVED UP]  H. ORDINANCE NO. 2016-23, SETTING THE STORM. AND SURFACE WATER MANAGEMENT RATES Andy Maron, Utility Advisory Committee (UAC) Chair, indicated the UAC spend quite al bit of time in 2014-2015 focusing on the Storm and Surface Water Utility and they concluded the utility was not devoting enough ofi its resources to capital improvements. He explained the City would need to look at either increasing revenue, reducing expenses or both, He shared some examples of what the UAC thought were operating expense reductions that the City could consider (costs for Water Quality and Monitoring Program be reallocated to reduce the amount paid by the SSWMI Utility, allocation oft that cost (roughly $120,000 yearly) be reduced by 40%, payment tot thel Kitsap Conservation District be allocated 50/501 between the General Utility and SSWM Utility, proposed reallocation ofstreet sweeping cost 50/50 between the General Fund and SSWM Utility and that the Utility Taxi is also  FOR 2017, AB 16-108 - FINANCE9:12 PM  applied tot the SSWM Utility so they pay the General Fund about $120,000 ay year).  8. UNFINISHED BUSINESS (CONTINUED)  D. 2017-2018 PROPOSED BUDGET DISCUSSION: POLICE DEPARTMENT 9:201 PM  Police ChiefHamner provided the following budget information (how the department compares to other comparable cities regarding staffing levels, 31% increase in population since 1999, number ofofficers have stayed at 21 since 1999 andi in the last 15 months we'vel had 58% of shifts are being covered by 2 or less officers. He shared recent events which) have strained the  department's resources and thel benefits ofa appropriate staffing levels. There was Council support in finding a way to authorize hiring two offiçers in 2017.  9. NEW BUSINESS  A. AMENDED INTERLOCAL, AGREEMENT WITH BAINBRIDGE ISLAND SCHOOL DISTRICT FORI EXTRA Police Chief] Hamner explained the amended interlocal agreement provides for police services at select school functions. This agreement, ine effect since 2002, has been amended and restated, providing for updated terms and conditions, including a new base  DUTY POLICE SERVICES, AB 16-144-1 POLICE 9:50 PM  rate for officer time.  Following brief comments and questions, ai motion was made.  MOTION: Imove that the City Council, forward the Extra Duty. Police Services Contract with the Bainbridge Island School District to the October 25 consent agenda.  BLOSSOMIPELIIEK: Motion carried 6-0.  B. MILLER ROAD NON-MOTORIZED DESIGN CONTRACT, AB 16-145-1 PUBLIC WORKS 10:00PM Public Works Director Loveless introduced thei item. In 2007, and as part of Non-Motorized Element ofthe City's Comprehensive Plan, the Core 40 Program was established to provide forty (40) miles ofin integrated shoulder network for bicycles and non- At the beginning oft the year, the City received notice ofa award of Federal Surface Transportation (STP) grant funds for the Core 40 Miller Road project and subsequently, the City Council adopted Resolution No. 2016-07 accepting the STP grant funds in the amount of $751,299 at their February 16, 20161 meeting. This project inçludes paved shoulder widening on both sides ofMiller The Citys solicited statements of qualifications for the Miller Road Non-Motorized Improvements design by advertising in thel local newspapers and Skillings Connolly was selected as the most qualified consultant in the amount of $178,930.36. The consultant will develop plans and specifications and assist City staffwith obtaining permits and approvals as needed. Mayor Tollefson requested staffi forward an email the City received from a citizen regarding protecting trees by realigning the road  motorized transportation island-wide.  Road from Tolo to Peterson Hill, approximately 1.15 miles.  tot the project design team.  4    REGULAR CITY COUNCIL MEETING MINUTES  OCTOBER11,2016  MOTION: Imove that the City Council forward the Professional Services Agreement with Skillings Connolly in the amount of8178,930.36) for the Miller. Road Non-Motorized  Improvements project to the October. 25, 2016 consent agenda. ROTHITOWNSEND: Motion carried 6-0.  C.ANNUAL: STORMWATER PRESERVATION CONTRACT AWARD ANDI BUDGET AMENDMENT, AB Public Works Director Loveless introduced the item. The. Annual Stormwater Preservation project includes drainage improvements at the following locations: 1) the New Sweden location is a replacement of an existing damaged undersized conveyance pipe system adjacent to 4705 New Sweden Avenue. 2) the Blue Heron location includes repairs to a storm water conveyance system, outfall dissipater and other related miscellaneous: items; and 3) the Hidden Cove Estates location involves retrofitting an existing treatment and outlet system by rebuilding a bio-swale berm, installing a catch basin overflow system, and Bids were: solicited through the local newspapers and the bid opening was held on October 3, 2016. The apparent low bidder is Northern Land Development in the amount of$120,833.89. The engineer's estimate is $90,000 to $110,000. Staff has reviewed the bid documentation and contractor's qualifications and recommends that the City Council award this contract to Northern Land  16-146 - PUBLIC WORKS 10:04 PM  revising the control structure and pond overflow system.  Development in the amount ofs $120,833.89.  MOTION: Imove that the City Councilj forward the Annual Stormwater Preservation project construction award tol Northern. Land Development in the amount f$120,833.89, and budget amendment of830,000.00 from. the Stormwater Utility Fund, thereby. increasing the spending authority and amending the Capital Improvement Plan, to the October. 25, 2016  consent agenda.  MEDINA/PELTIER: Motion carried 6-0.  D. ORDINANCE NO. 2016-26, 2017-2022 CAPITAL IMPROVEMENT PLAN, AB 16-110- - PUBLIC WORKS Public Works Director Loveless introduced the item. The City ofBainbridge Island annually updates its capital project planning in accordance with the policies in the Comprehensive Plan. The updates include new information on timing of projects, current  10:06 PM  information on grants, and new projects as indicated by current information. Following brief comments regarding process, a motion was offered.  MOTION: Imove that the City Council forward Ordinance No. 2016-26, 2017-2022 Capital. Improvement Plan, to unfinished business on October. 25, 2016, and consider  approval.  TOWNSEND/ROTIE Motion carried 6-0.  E.P POLICE VEHICLE #192 REPLACEMENT AND BUDGET AMENDMENT, AB 16-147-F PUBLIC WORKS Public Works Director Loveless introduced thei item. In September 2016 police vehicle #192 was rear-ended in a traffic accident. The Washington Cities Insurance Authority (WCIA) has evaluated the damage and deems the vehicle totaled. Staff has researched various replacement options and recommends the purchase ofa 20171 Ford Police Utility Interceptor. The cost for the new vehicle is estimated at $35,000 with approximately $15,000 ini upfitting for a total cost of$ $50,000. A budget amendment of$5,000 is needed for the insurance deductible and the remaining amount due willl be paid by the AWC.  10:10PM  MOTION: Imove that the City Councilj forward. Police Vehicle #192 Replacement and budget amendment of $5,000.00 from the general fund, thereby increasing the spending authority and amending the Capital. Improvement. Plan, to the  October. 25, 2016consent agenda. BLOSSOMIPELITER: Motion carried 6-0.  F. ORDINANCE NO. 2016-21, PROVIDING FORI NO AUTOMATIC ANNUAL FEE. ADJUSTMENTTOTHE Finance Director Schroer introduced thei item. Bainbridge Island Municipal Code Section 13.16.060 provides for an annual  CITY'S WATER UTILITY RATES FOR 2017, AB 16-106-1 FINANCE 10:11 PM  5    REGULAR CITY COUNCIL MEETING MINUTES  OCTOBER 11,2016  automatic rate increase equal to the annual percentage increase ini the United States Consumer Price Index, All Urban Consumers (CPI-U) for November of the preceding year unless the City Council determines by December 31st ofany year that the adjustment shall be another amount or shall not occur for the next year. The budget proposed for 2017 does not assume an increase tot the water  utility rates.  MOTION: Imove that the City Council forward Ordinance No. 2016-21, providing, for no automatic annual fee adjustment to water utility rates for 2017, to second reading on October. 25,2 2016, and consider approval.  BLOSSOMIPELTIER: Motion carried 6-0.  G. ORDINANCE NO. 2016-22, PROVIDING FOR NO AUTOMATIC ANNUAL FEE. ADJUSTMENT TO1 THE Finance Director Schroer introduced thei item. Bainbridge Island Municipal Code Section 13.16.060 provides that alls sewer rates shall be subject to an adjustment beginning with the first full billing period of each year equal to the annual percentage increase in the United States Consumer Price Index, All Urban Consumers (CPI-U) for November oft thej preceding: year as shown in the release from the Bureau ofLabor Statistics plus two percent unless the City Council determines by December: 31st of any year that the adjustment shalll be another amount or shall not occur: for the next year. The budget proposed for 2017 does not include ani increase  CITY'S SEWER UTILITY RATESI FOR: 2017, AB 16-107-I FINANCE 10:131 PM  to sewer utility rates.  MOTION: Imove that the City Council forward Ordinance No. 2016-22, providing for no automatic annual adjustment oft the City's sewer utility rates for 2017, to second  reading on October 25, 2016 and consider approval. BLOSSONTOWNSEND: Motion carried 6-0.  H. ORDINANCE NO.2016-23, SETTING THE STORM AND SURFACE WATER MANAGEMENT RATES Finance Director Schroer introduced the item. Bainbridge Island Municipal Code Section 13.24 states that the charge per impervious surface unit (ISU) shall be adopted by ordinançe and published in the City's combined fee schedule. The budget proposed for 2017 includes al 15%i increase to Storm and Surface Water Utility rates, from $146.76 annually to $169.00 per ISU per year. Mayor Tollefson requested information on what the impact on the necessary rate would be ifthe Water Quality and Flow Monitoring  FOR2017, AB 16-108-1 FINANCE 10:141 PM  Program was eliminated.  MOTION:Imove. the City Council forward Ordinance. No. 2016-23, Setting the Storm and Surface Water Management. Rates) for 2017, to second reading on  October. 25, 2016 and consider approval. TOWNSEND/ROTIE Motion carried 6-0.  10. CONSENT AGENDA 10:181 PM A. CONSENT AGENDA COVER SHEET  B. ACCOUNTS PAYABLE VOUCHER ANDI PAYROLL APPROVAL Accounts Payable EFT/ACH Check Numbers 233-235, Manual Check Numbers 342603-342607 and Regular Run Check Numbers 342608-342701 for a total of $761,237.13.. Travel Advance Check Numbers 77-78 fora at total of$400.00.. Payroll Miscellaneous Check Number 107808, Direct Deposit Check Numbers 036955-037069, Regular Run Check Numbers 107809-107815, Vendor Check Numbers 107816-107829, Miscellaneous Check Number 107830 and) Federal C.REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, SEPTEMBER 27,2016 D. REGULAR CITY COUNCIL: STUDY SESSION MINUTES, OCTOBER 4, 2016  Taxl Electronic Transfer for at total of$629,669.00.  Councilmember Medina removed item Cto correct a typographical error. Mayor Tollefson asked for consideration of consent agenda items A, B and) D.  MOTION: Imove they are approved as drafied. TONSEND/ROTH: Motion carried 6-0.  6    REGULAR CITY COUNCIL MEETING MINOTES  OCTOBER 11,2016  Councilmember Medina requested the motion on thet top ofi page 4 be amended to read: Motion carried6-1. With that modification,  which was seconded by Councilmember Townsend, the minutes were approved as amended 6-0.  11. COMMITTEE REPORT 10:19) PM  A. LODGINGTAX, ADVISORY COMMITTEE LIAISON NOTES, SEPTEMBER: 6-COUNCIENIER B. UTILITY ADVISORY COMMITTEE LIAISON NOTES, SEPTEMBER: 28, 10I6-COUNCILMEMBER  TOWNSEND TOWNSEND  12. REVIEW UPCOMING COUNCIL MEETING AGENDAS 10:201 PM  City Manager Schulze reviewed the upcoming study session agenda and long-range calendar. City Council discussed rescheduling Mayor Tollefson wanted tol know who would be attending the legislative reception sponsored by the Kitsap County Regional Councilmember Townsend shared that al high school student tragically passed away over the weekend. Mayor Tollefson reported on a recent Bainbridge Island Healthy Youth Alliance meeting over the weekend and how their work is even more meaningful.  thel November 8 meeting due to the upcoming election. 13. FOR" THE GOOD OF THE ORDER  Council at the Clearwater Casino on November 10 so he could arrange payment.  14. ADJOURNMENT 10:29F PM Mayor Tollefson adjourned the meeting at 10:291 PM.  Mayor  JA24  Nonalinc D. loa6 Rosalind D. Lassoff, City Clerk  7