CITY COUNCIL STUDY SESSION MINUTES TUESDAY,OCTOBER 4, 2016  ITEMS DISCUSSED  1. CALL TO ORDERI /ROLL CALL 3. PUBLIC COMMENT ON. AGENDA ITEMS 4. BUDGET DISCUSSION A. 2017-2022 CAPITAL IMPROVEMENT PLAN B. 2017-2018 PROPOSED BUDGET C. MAJOR MAINTENANCE D. UTILITY RATES 5. FOR THE GOOD OF THE ORDER , ADJOURNMENT  2. ACCEPTANCE OR MODIFICATION OF AGENDA/CONFLICT OFI INTEREST DISCLOSURE  1.  CALLTO ORDER/ROLL CALL7:01 PM recording oft the meeting and prepared the minutes.  Deputy Mayor Medina called the meeting to order at' 7:01 p.m. with Councilmembers Blossom, Peltier, Roth, Tollefson and Townsend present. Councilmember Scott was absent and excused. Records Management Coordinator Jahraus monitored the 2. ACCEPTANCE ORI MODIFICATION OF AGENDA/CONFLICT OF INTEREST DISCLOSURE 7:02 PM Deputy Mayor Medina requested the Capital Improvement Plan under budget discussion moved up due to his having to depart the  meeting at 8:00 p.m.  MOTION: Imove to accept the agenda as amended. TOLLEPSONTOMASEND: The motion carried 6-0.  3. PUBLIC COMMENT ON AGENDA ITEMS 7:03P PM  Davel Henry offered general comment.  Patty Dusbabek shared conçerns about LTAC funds in the proposed budget items. She opposes the use oft the term "organic" to describe the evaluation of thei funds and that the committee chairs demand that the votel be unanimous when selecting recipients.  4. BUDGET DISCUSSION710PMI A. 2017-2022 CAPITAL. IMPROVEMENTFLAN 2017-2022 Capital Improvement Plan  Public Works Director Loveless provided al PowerPoint to illustrate the fiscal year 2017 capital improvements incorporated into the 2017- - 2018 Biennium Budget. The Capital Improvement Plan (CIP) represents an important element in the city's long-range and strategic planning. The CIPisar multi-year planning tool used toi identify needed capital projects fori improvements tot the City's owned and operated infrastructure and to coordinate the financing and timing oft these improvements. The CIP document is a roadmap for the next six years, and is strategically implemented to address the City's six key priorities; safe city, green well-planned community, reliable infrastructure and connected mobility, healthy and attractive community, vibrant economy, and good governance. Capital Asset is defined as real or personal property that has a unit acquisition cost equal to or greater than $5,000 and an estimated useful life of one year or greater. Projects and assets that do not meet both oft these requirements shalll be considered operating expenses andi included in the operating budget.. Major repairs will be capitalized only ift they increase the value, extend the useful life beyond the original estimate, or increase the capacity, capability or efficiency oft the existing capital asset.  7:32PM  MOTION: Imove to rename the line item. AMI Radio Emergency in the Fleet and Equipment CIP to  Emergency. Radio Communications. TOLERSONTOMASEND: The motion carried 6-0.  Public Comment  Elise Wright and] Frank Ostrander of thel Marine Access Committee presented to Council about al boat/trailer ramp. They are urging Council tol have a collaborative arrangement with the Bainbridge Island Metropolitan Parks and) Recreation District. Thel Marine  Access Committee had previously sent Council ai more detailed document outlining their requests.    CITY COUNCIL STUDY SESSION MINUTES TUESDAY, OCTOBER 4, 2016  7:59PM  MOTION: Imove we budget $6,000 in the next biennium for design and permitting for a viewing platform and $20,000 in 2019 to build and have the money in the budget, contingent on1 working it out AMENDEDMENT: Imove we budget an amount TBD $6,000 in the next biennium. for design and permitting for a viewing, platform and an amount TBD 820,000 in 2019 to build and have the money in The motion as amended. motion carried. 5-0. (Deputy Mayor Medina not present) for this vote.)  with Washington State Ferries. MEDINAPELTIEK  the budget, contingent on working it out with Washington State. Ferries. ROTH/TOWNSEND: The motion carried 4-1. (Peltier)  Public Comment  Pattie Dusbabek, asking about emergency preparedness. B. 2017-2018 PROPOSED BUDGET8:15PM Public Works Department Budget Notes and Changes  Public Works Director Loveless provided al PowerPoint and explanation for the Public Works 2017-2018 proposed budget.  The 2017-2018 budget includes the establishment ofal Development group within the Public Works Department. As part oft this effort, transfer two 1.01 FTEI Development Engineer positions  from Planning and Community Development to Public Works. Development: Engineering, inspection and Water Resources.  Add 1.01 FTE Engineering Manager position to provide leadership and supervision for the Development group, including Add 1.01 FTE Construction Inspector position to provide capacity for inspection of private development, inj particular utility Extend 1.01 FTE Water Resources Technician, term-limited, through 2017. This position supports the City's ongoing efforts related to its required National Pollutant Discharge Elimination System (NPDES) permit, as well as the Water Quality and Flow Monitoring Program. As the new Development group is formed, longer-term staffing decisions willl be made. Add 1.0F FTE Maintenance Technician: II, Water/Wastewater, to] provide additional capacity for routine maintenance: for water The 2017-20181 budget establishes anl Equipment Rental and) Revolving (ER&R) Fund. Increase the Operating Leases budget to reflect annual contribution to vehicle replacement and current year usage. The ER&R fund is a new fund, implemented for2017 to increase the City's ability to save for and replace its equipment according tot the established lifecycle replacement The 2017-20181 budget transfers the funding for certain expenses such as bio-solids disposal and decant facility spoils disposal from General Government budget to thel Public Works budget. This transfer does not change budgeted spending, but shows  and transportation development, which willl become the responsibility of the City.  ands sewer utility infrastructure.  schedule.  in Public Works as an increase to Utilities spending as compared to 2016.  C. - MAJOR MAINTENANCE 8:22PM Major Maintenance Projects in the Upcoming Biennium  Deputy City Manager Smith provided al PowerPoint and explanation for major maintenance expenditures in the 2017-2018 proposed The 2017-2018 budget includes several major maintenance projects within the operating budget. These projects are not listed in the Capital Improvement Plan, as they are not capital ini nature, but do: represent significant investments in the infrastructure oft the City. Maintenance at Suyematsu Farm including: fuel tank removal, farmhouse stabilization and farm irrigation system repairs.  budget.  Projects in the major maintenance category include:  Repair to Beach Drive Road End. Rockaway Beach tabilization'mitigation.  2    CITY COUNCIL STUDY SESSION MINUTES TUESDAY, OCTOBER 4, 2016 overall budget increase.  Annual programs for the water, sewer and SSWM utilities. The budget for these annual programs was previously in the capital budget, but has been used largely for major maintenance. The transfer from the capital to the operating budget does not represent an Annual road maintenance program, which is an existing annual program and appeared in the operating budget (Repair and Annual facilities maintenance program, whichi is an existing annual program and appeared in the operating budget (Repair and  Maintenance line) in the previous biennium. Maintenance line) in the previous biennium. D. UTILITY RATES 8:331 PM Utility Rates for 2017 utility in the 2017-2018 proposed budget. annual basis. For 2017:  Finance Director Schroer provided al PowerPoint to illustrate the rate proposals for the water and sewer utility as well as the SSWM Each year, as part of thel budget development process, Council considers rates for each oft the City's three utilities. Rates are set on an  Water Utility: No change proposed to rates. Sewer Utility: No change proposed tor rates,  Storm and Surface Water Management (SSWM)Utility: Ratei increase proposed. For 2017, the proposed newr ratei is $169.00 The attachments included in the agenda packet show budgeted revenues and expenditures for each oft the three funds. Both 2017and City Manager Schulze reported that the City has received five applications responding to thei issuance oft the Request for Qualifications for the Suzuki ecological study. ETAC will review the applications and provide input. The continuation oft the discussion on Ordinance No. 2016-19, Utility Taxes, has been rescheduled to the October 25 business Mayor" Tollefson requested Council be prepared at the beginning of each meeting to share or announçe anything the public may Councilmember Peltier invited everyone to the Indigenous People's Day celebration on Monday, October 10 at City Hall, 6:00 p.m.  peri impervious surface unit per year. This ratei is an increase of15% over the 20161 rate.  2018 information is provided.  5. FOR' THE GOOD OF THE ORDER 8:38 PM  meeting to provided staff with more time toj prepare.  want to be aware ofin the event a meeting goes long and viewers are lost to thel late hour.  -8 8:00 p.m.  6. ADJOURNMENT 8:41 PM Mayor Tollefson adjourned the meeting at 8:41 p.m.  42  Kelly. Jahraus, Records  hor  3