REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAYJULY 12, 2016  ITEMS DISCUSSED  1. CALLTOORDER. /ROLL CALL/PLEDGE OF ALLEGIANCE  2. ACCEPTANCE ORI MODIFICATION OF THE AGENDA/CONFLICT OF INTEREST: DISCLOSURE  3. PUBLIC COMMENT 4. CITY MANAGER'S! REPORT  5. NEW: BUSINESS (PUBLIC COMMENT! INVITED ONI EACH ITEM)  A. PROCLAMATION: DECLARING THE WEEK OF JULY24, 2016. AS CLIMATE CHANGE ADAPTATION B. CITIZEN. ADVISORY COMMITTEE, APPOINTMENTS, AB 16-093 - MAYOR TOLLEFSON C. ORDINANCE NO. 2016-18, BOATING UNDER THE INFLUENCE, AB 16-099-EXECUTIVE A. REVIEW. AND. AFFIRM COST ALLOCATION METHODOLOGY, AB 16-084 -E FINANCE B. CONSIDER TRANSFER OF ISLANDWOOD TRAIL EASEMENT, AB 16-064- - CITY COUNCIL C. ELECTRIC: MUNICIPALIZATION FEASIBILITY STUDY PROFESSIONAL SERVICES AGREEMENT, D. FINANCIAL CAPACITY DISCUSSIONFISCAL HEALTH MODEL REVIEW, AB 16-055-FINANCE  WEEK, AB 16-101 -N MAYOR TOLLEFSON  6. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ON EACHI ITEM)  AB 15-183 - EXECUTIVE  E. DISCUSSION OF UTILITY TAXI LEVY,AB 16-100-FINANCE B. ACCOUNTS PAYABLE VOUCHER AND: PAYROLL. APPROVAL REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, JUNE: 28, 2016 D. REGULAR CITY COUNCIL STUDY SESSION MINUTES, JULY 5, 2016  7. CONSENT AGENDA  A. CONSENT AGENDA COVER SHEET  E. SECTOR SERVICE LEVEL. AGREEMENT WITH WASHINGTON STATE: PATROL, AB 16-096-POLICE WATERFRONT PARK MEMORIAL BENCH DONATION AGREEMENT, AB 16-092-PUBLIC WORKS G. ORDINANCE NO. 2016-13, RELATING TO' THE CITY'S FIRE CODE, AB 16-097-PLANNING H. ORDINANCE NO. 2016-14, RELATING TO THE CITY'S BUILDING CODES. ANDI REGULATIONS, ORDINANCEI NO. 2016-07, CHANGING THE PUBLIC WATER ACCESS COMMITTEE NAME TOI MARINE  AB 16-098 - PLANNING 8. COMMITTEE REPORTS  ACCESS COMMITTEE, AB 16-095 -) EXECUTIVE  A. DESIGN REVIEW BOARD! LIAISON NOTES, JUNE20, 206-COUNCIMEMBER PELTIER B. UTILITY ADVISORY COMMITTEE LIAISON NOTES.,UNE2,2016-COUNCILMEMBEK TOWNSEND  9. REVIEWI UPCOMING COUNCIL MEETING AGENDAS  10. FOR THE GOOD OF THE ORDER 11. ADJOURNMENT  1. CALLTOORDER/ROLL CALLI /PLEDGE OF ALLEGIANCE 7:00PM  Mayor Tollefson called the meeting to order at 7:001 PM with Councilmembers Blossom, Medina, Peltier, Roth, Scott and Townsend present. City Clerk Lassoffi monitored the recording oft the meeting and prepared the minutes. Everyone stood 2. ACCEPTANCE ORI MODIFICATION OF THE AGENDA/CONFLICT OF INTEREST DISCLOSURE7 7:00PM  fort the Pledge of Allegiance.  MOTION: Approve the agenda as presented. SCOTT/PELTIER: Motion carried 7-0.  There were no conflicts ofi interest disclosed. 3. PUBLIC COMMENT 7:01PM  Bryan McConaughy, PSE representative, indicated PSE: has reached an agreement with the Sierra Club on the legal settlement that Charles Keating, Manitou Beach Drive, read from a prepared statement and urged the City Council to vote no on the feasibility  will retire thet two oldest coal strip units (1 and 2) no later than July, 2022.  study.    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES go forward with a consultant for a minimum of6r months.  TUESDAY,JULY 12, 2016  David S., Sunset Bluff Lane, former task force member, requested the City Council delay action and any vote on whether or nott to John. Anderson, 1181 Irene Place, explained how it would be difficult to change the electrical system on thei island. Roth Hefer, Miller Road, spoke to the various methods the City could use to develop a City-owned power plant. Jim Reisteder, Agate Beach Lane, asked the City Council to vote no on spending $100,000 on the feasibility study. Davel McKenzie, 450 Wood Avenue, spoke to the costs allocated with buying out Puget Sound Energy. Fran Korten, 123 Bjune Drive, urged the City Council to get the facts by supporting the feasibility study.  Dale Sperling urged the City Council not tos spend a dime on the meritless study.  4. CITY MANAGER'S REPORT 7:231 PM  City Manager Schulze reported on the following: staff would be coming forward with an ordinançe amending thet transportation fee ordinance; Lynwood Center Sewer capacity issues have been resolved allowing the release of ERU's associated with projects on hold; update relating a complaint concerning tree removal on Manitou Beach Drive; Public Safety Committee meeting willl be held on. July 14; RFQ for thel Police/Court Facility planning and design work has been published with SOQ's due. August 8; the RFP1 for the Suzuki property ecological assessment was reviewed byt thel Environmental Technical Advisory Committee today and  it will be coming forward for review and consideration by the City Council. 5. NEW: BUSINESS (PUBLIC COMMENT INVITED ON EACH ITEM) WEEK, AB 16-101 -I MAYOR TOLLEFSON 7:29PM  A. PROCLAMATION DECLARING THE WEEK OF. JULY: 24, 2016 AS CLIMATE CHANGE. ADAPTATION Climate change is an environmental challenge but iti is far from being just an environmental issue. Changing climate, through increasing temperatures, altered precipitation patterns, sea level rise and ocean acidification, will affect ecosystems, food production, access to water, energy production, transportation,' health and community infrastructure. Since 1900, every decade has been warmer than the previous and 2015 was the hottest year on record. Ini fact, the 161 hottest years While one may think climate change is restricted to thel low-lying Pacifici islands or the drought-prone regions of Africa, the truth isi ita affects every community. Through extreme weather events, rising sea levels, increasing: food costs, andi myriad other impacts, we are alle either directly or indirectly affected by climate change. Ouri island community is certainly noti immune. While iti is always easy toj put things offi for later, climate action cannot afford to wait. Failing to acti now to curb emissions in order tol keep the global average rise in temperature below the 2 degree Celsius, and toj prepare our community for the change thati is Therefore, given the extent of the climate challenge and thei role each of us has toj play in both its cause and effects, iti is critical that everyone use our power to change climate change. From sustainable local planning to being a part ofg global movements there  Mayor Tollefson introduced thej proclamation.  on record have occurred in the past 18 years (as calculated by NOAA).  already happening or committed to will lead to adverse outcomes.  much we can do to make a difference.  MOTION: Imove that the City Council authorize the Mayor tos sign the proclamation declaring the week ofJuly24, 2016 as Climate Change. Adaptation Week. MEDINA/BLOSSOM- Motion carried 7-0.  Mayor Tollefson presented the proclamation to Eric Mielbrecht, Eco-Adapt co-founder. Mr. Mielbrecht thanked the City for Kevinl F., Torvanger Road, felt the City should' be directing their political powers at the federal government to get China to stop  issuing the proclamation. Public Comment  building one new coal-fired power plant a week.  2    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,JULY 12,2016  B. CITIZEN ADVISORY COMMITTEE APPOINTMENTS, AB1 16-093-1 MAYOR TOLLEFSON 7:361 PM  MOTION: Imove the City Council confirm the appointment of Carol Mattson Oas to the Historic Preservation Commission, Position. 5.1 for at three-year term expiring June. 30, 2019. Imove the City Council confirm the appointment of Sandy Burke to the Historic Preservation Commission, Position 6,for ai three-year Imove the City Council confirm the appointment of fAdrienne Wolfe to the Historic Preservation Commission, Position 7.fora three-year term expiring June 30, 2019. BLOSSOMIPELTIER: Motion carried 7-0. MOTION: Imove the City Council confirm the appointment ofShannon Glass to the Non-Motorized Transportation Advisory Committee, Position 5, for a three-year term expiring June. 30, 2019.  term expiring June 30, 2019.  ROTH/SCOTT: Motion carried7-0.  C.ORDINANCE! NO. 2016-18, BOATING UNDERTHE INFLUENCE, AB: 16-099-EXECUTIVE7:39PM The Bainbridge Island Municipal Court only has jurisdiction over crimes, which have been incorporated by reference in the Bainbridge Island Municipal Code (BIMC). Boating Under the Influence is a crime thati is not incorporated by the BIMC. A citizen askedi in what areas would the City be issuing the citations, who would be issuing them, would need tol hire another police officer, build another boat and who is in charge ofl DUI infringements on boats currently. City Manager Schulze responded that thej police department has jurisdiction ini the waters around island which goes halfway to the next jurisdiction. He added no  City Manager Schulze introduced the ordinance.  Public Comment  officers or additional boat would be needed and our officers are in currently involved with enforcement.  MOTION: Imove that the City Council forward Ordinance. No. 2016-18  to the. July. 26, 2016 consent agenda. SCOTT/BLOSSOME Motion carried 7-0.  6. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ON EACH ITEM)  A. REVIEW AND AFFIRM COST ALLOCATION METHODOLOGY, AB 16-084 FINANCE7:43: PM Senior Finançial Analyst Dunscombe clarified the changes made since the last time the item came to City Council. The City shares some costs across one or more ofi its operating funds because some costs provide benefit to more1 than one: fund at thes same time. This practice is called "cost allocation" andi is used by many organizations, both public andj private. Cost allocation isc considered al best practice for municipal financial management, andi is consistent with the City's financial policies. There area range of possible approaches to cost allocation; each organization must choose ai methodology that matches its preferences while The City ofl Bainbridge Island has developed a cost allocation methodology to distribute certain costs across its operating funds, including shared costs such as insurance and space rent, personnel, and certain capital projects. Itis the City's practice to use numerical proxies whenever possible as a basis to distribute costs. Examples oft numerical proxies usedi in the City's methodology include operating expense by fund, a count of Council agenda items, and the number of cash receipts processed. The cost distribution calculated through the cost allocation methodology forms a basis for the City's budget, which ist thei reason for staff's presentationi to Council tonight. In addition, the City's financial policies include a Council review and affirmation oft the  also complying with applicable guidance from regulatory agencies.  attached information as part oft the biennial budget process.  3    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,ULY12,2016  Council and staff discussed the attached information on June 7; during the discussion Council identified twoi items for follow up. Additional information on those two items, the cost distribution approach for the City's groundwater monitoring program and  water quality and flow monitoring program, is provided ini the staff transmittal memo.  No public comment was offered.  MOTION: Imove that the City's Cost Allocation. Methodology be amendeds so that 100% of the City's Groundwater Management. Program is funded by the General Fund and the City's Water Quality and Flow. Monitoring Program is allocated according toi the UACrecommendation which is. 50% General Fund, 40%  Stormwater and 10% Water BLOSSOMIPELTIER: Motion carried 7-0.  B. CONSIDERTRANSPER OF ISLANDWOOD TRAIL EASEMENT, AB 16-064- CITY COUNCIL7:51 PM Ini fall: 2015, the Parks Foundation proposed construction ofar non-motorized trail tol be located onj property owned by IslandWood, within an easement that was previously granted to the City of] Bainbridge Island. The trail proposal has been under consideration by the City's Non-Motorized Transportation Advisory Committee (NMTAC), which discussed this topic at several meetings in early 2016, received public comment, and participated in opportunities to walk thej proposed trail site with representatives: oft the At thel NMTAC meeting on April 18, 2016, the committee recommended the City transfer its IslandWood trail easement tot the NMTAC Motion: That thel Bainbridge Island Non-Motorized Transportation Advisory Committee recommends that the City of Bainbridge Island transfer the IslandWood Northern Boundary" easement to the Bainbridge Island Metro Park & Rec District for the development ofaj publicly accessible trail. The Committee requests that the Bainbridge Island City Council and Staffand Bainbridge Island Metro Park & Rec District Commissioners and Staff consider the extensive public input that has been provided  Mayor Tollefson introduçed the item.  Parks Foundation, IslandWood, and neighboring property owners,  Park District.  to date, specifically:  Alterations tot thet trail should minimize ecological impacts The design of the trail should consider all ages and abilities and user's safety The trail should have minimal impact on IslandWood operations The trail, where possible, should consider the proximity of neighbors  The formal transfer process requires City Council approval ofas surplus resolution, survey work, SEPA review and other documentation. The Park District has indicated that they may be able tol begin construction ofa trail before winter. IfCity Council supports the transfer ofthis easement to thel Park District, City staff will work toi identify options that could allow thel Park District City Council was also provided a copy ofal letter from the Park District outlining its proposed development, including assurances regarding not removing significant trees and working to accommodate neighborhood concerns. That letter isi included with this At the April 26 meeting, City Council discussed this issue and heard substantial public comment. Both at that time and Ati its May 17 meeting, City Council agreed that it would like tos see a surveyed route ofaj proposed trail, and agreed thati ifParks would do such a survey and the City subsequently decided against transfer oft the easement, the City would pay the cost oft the That proposal was relayed to Parks. Iti is Parks position thati iti is willing toj proceed with this project consistent with the recommendations of the NMTAC, subject toi its undertakings as set out in its letter, and of course subject to the existing  to begin trail construction before the transfer oft the easement is formally completed.  Agenda packet.  subsequently, City Council has also received substantial written comment.  survey.  development requirements ofCity code andi regulations. the trail, or whether it wishes the City to develop thet trail.  The City Council should decide whether it wishes this easement tol be used for at trail, andi ifso, whether it wants Parks to develop  4    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,JULY 12, 2016 Public Comment trail easement.  Barb Trafton, Parks Foundation Executive Director, thanked the City Council for their continued consideration in transferring the  MOTION: Imove the City Council direct staff to take the necessary steps to transfer the City's IslandWood. Northern Boundary easement to the Bainbridge Island Metropolitan. Park and Recreation District for the construction ofar non-motorized. trail consistent with the recommendations ofthe City's Non-Motorized Transportation. Advisory Committee. PELTIER/ROTH: Motion carried 6-0 (Medina abstained).  C. ELECTRIC MUNICIPALIZATION FEASIBILITY STUDY PROFESSIONAL SERVICES AGREEMENT,  AB 15-183- EXECUTIVE 7:561 PM  Mayor Tollefson suggested public çomment be received prior to City Council discussion.  Public Comment  Barry Peters, Vinland Lane, urged the Cityt to do an: independent fact-finding feasibility study without delay. David Korten, 123 Bjune SE, strongly urged the City to move forward with the feasibility study.  Doug Rauh, 122661 Kenneth Place, was against conducting a feasibility study. David. Johnson, New Brooklyn Road, opposed the feasibility study.  Kevin F., Torvanger Road, commented on the woefully small amount the City was spending on the study for what is going tol be Stephanie Olson commented on recent power outages and making sure ift the City does choose a consultant that they are unbiased, Chris Van Dyke, Ihland' Way NW, provided comments via an overhead and commented on how the City deals with utilities  $100-+M decision.  Mike Shurtleff, NEI North Tolo Road, supported going ahead with the feasibility study without delay.  overall.  Tom Goodland, NEI Darden Lane, supported moving forward with the feasibility study.  Mark Frank spoke to the selection of and due diligence process for vetting the consultant that was chosen. John Ogden, Arrow Point Loop NE, spoke against moving forward with the feasibility study.  Ms. Keating, Manitou! Beach Drive, urged the City Council to do their due diligence and get the right RFP before moving forward. Russell Everett, Springridge Road, said that while he supported a transition to a coal-free world, he was deeply skeptical oft the  necessity and neutrality ofthis proposed study.  Patricia Frank, Hawley Way, spoke to the petition against going ahead with the feasibility study. Ben Avery, Evergreen Avenue, strongly urged the City Council to move forward.  Rod Stevens, Odd fellows Road, commented on the scope of work. He thought the City should hire ai management consultant.  Steve Johnson, Lytle Road, spoke in favor oft thes study. Ericka Shriner, 91801 Baker Hilll Road, spoke in favor of the study.  Terry Mundorf, 9824 Rose Trail Lane, former task force member, spoke in favor ofhiring a consultant in order toi receive an  objective analysis.  5    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,JULY 12, 2016  Kirsten Hytopoulos, Blakely Heights Court, asked the City Council to stay the course and to conduct a feasibility study.  Elizabeth Willey, Bill Point, did not agree with spending a dime on the feasibility study.  There was no further public comment offered. City undertaking the task ofrunning an electric utility. when thel PSE franchise renewal comes up.  Councilmember Blossom said she did not support the study not because of the goals it was tryingt to achieve but rather with the Councilmember Scott felt the study would be the right next step. He added it would also provide information beneficial to the City  Councilmember Roth supported the study. He commended citizens who came to speak to thei issue.  Councilmember Peltier wanted thei issue to go to a vote ofthe people regardless of whether or not the City conducted a feasibility study. He thought the City should slow down and watch how things goi in Jefferson County. He was not against a public utility on Councilmember Townsend: felt confident with the task force's consultant recommendation. He believed the most salient question was related toj providing the most reliable power and responsiveness on the island. He thought it was appropriate to conduct Deputy Mayor Medina felt the biggest obstacle is the City's limited bandwidth to get stuff done. He suggested the City Manager Mayor Tollefson noted that the school district was very pleased with thes service they receive from PSE. He emphasized that voting to proceed is noti rushing the process but simply taking a step. Hel believed ai feasibility study would arm the City Council withi information that would allow them to be better investigators when speaking with. Jefferson County about their experience.  the island but thought it would bel better run by thel Kitsap County PUD. He shared his thoughts about PSE.  astudy.  begin tol have a dialogue with PSE about what a future franchise agreement might look like.  MOTION: Imove that the City Council authorize the City Manager to enter into a contract with D.. Hittle &. Associates, Inc.,, for the purpose ofconducting an electric utility feasibility. study, in an SCOTT/ROTH: Motion carried. 5-2 with Councilmembers Blossom  amount not to exceed $99,300. and Peltier voted against.  Ats 9:27 PM, the meeting adjourned for a 5-minute recess andi immediately returned to open session at 9:33 PM.  D. FINANCIAL CAPACITY DISCUSSION/FISCALHEALTH MODEL REVIEW, AB 16-055-1 FINANCE 9:33P PM As part of the biennial budget process and ongoing financial monitoring, City staff provides Council with briefings on the City's long-term financial performance. The purpose oft these briefings ist toj provide background information sO that Council can provide staff with policy guidance within which to make financial decisions and so that Council understands the financial status ofthe City Tonight's discussion provides information about the revenues and expenditures of the primary governmental funds ini the years of 20101 through 2015, along with a comparison of financial results to the policy reserve targets. In addition, the discussion wills show the anticipated future results of capital projects already included in approved capital plans. Finally, we will discuss forecasts for Finance staff will present information about 20161 financial performance and additional forecasts for 2016 year-end and 2017-2018  Finance Director Schroer gave a PowerPoint presentation.  organization.  future financial performance.  finances in August as part oft the mid-year financial report. There were brief comments and questions raised. There was no public comment given. No action was taken.  6    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, JULY 12, 2016  E. DISCUSSION OF UTILITY TAX: LEVY, ABI 16-100-1 FINANCE 9:561 PM  City Manager Schulze introduced thei item.  Utility taxes may be levied on the gross operating revenues earned by private utilities from operations within the boundaries ofa City and by a City's own municipal utilities. Utilities on which taxes may bel levied include electric, water, sewer, stormwater, gas, telephone, cable TV, and steam. Note that utilities will often break out the amount ofthet tax on thel bill, thet tax is legally levied on the utility, not the customer and must be paid from utility revenues. Utilities use the public right-of-way fort the infrastructure (pipes, cables, control structures, etc.) and the utility tax is levied as compensation for the ongoing use oft this public property by The Utility Advisory Committee (UAC) has recommended that the City Council eliminate the utility tax charged against the City water utility, sewer utility and stormwater utility. Thei recommendation to eliminate the tax charged tot the water ands sewer utilities ist based on the UAC's concern that thet tax is not equitable because it only applies to the City of] Bainbridge Island systems and does not apply to the other water ands sewer systems providing service to Island customers. The UACI has recommended eliminating the utility tax charged against the stormwater utility as an expenditure reduction action. For cities in Washington, the threel largest revenue sources are property tax, sales tax, and utility taxes. A diverse mix of revenue sources can be! helpful during economic downturns when sales tax revenues are frequently impacted. Keeping pace withi inflation is also difficult for cities in Washington as a result ofl legislative action capping property tax increases at one percent annually. While controlling expenditure growth is an important element ofl long-range financial strategy, it is also important for cities toj provide quality services to the community. Maximizing revenue potential to ensure that the City is receiving all ofthe revenue it can from authorized revenue sources is one of the strategies for keeping up with inflation. In fact, when cities approach the State Legislature regarding revenue authority, iti is frequently pointed out that cities are not using the existing authority toi its maximum potential. The City's financial position has significantly improved during the past five years, but we do know that ongoing revenues are not likely tol keep pace with ongoing expenditures. Our capital projects demands, including street, facility and non-motorized improvements includes many unfunded projects, will not be met without General Fund contributions. Reducing or eliminating the utility tax will reduce General Fund revenues by as much as $490,0001 based on 2015 actuals. In: 2016, iti is likely that Utility Tax Unless significant General Fund expenditure reductions are: made, which will result in eliminating or substantially reducing service levels, iti is not prudent to reduce General Fund revenues by $500,000 annually. As an alternative, the City Council could reduce the utility tax on the water and sewer utilities to three percent and levy a three perçent utility tax on1 the other water ands sewer utilities on thel Island. This approach would create more equity, reduce the cost to City water and sewer customers, and continue to  the utilities.  revenues will exceed $500,000.  provide the much-needed General Fund revenues.  Options for Consideration  1. Levya 6%1 Utility Tax on all water, sewer and stormwater utilities.  This option would result ina a substantial increase in annual utility tax revenues asi it would extend the existing utility tax charged to the City water, sewer and stormwater utilities onto all water and sewer utilities operating on Bainbridge Island. Itis difficult to estimate the revenue that would be generated without information regarding the gross revenues generated by the non-City utilities. However, this option would likely generate over $200,000 in additional utility taxi revenues annually. This optioni is not recommended, at this time, but could be considered at ai future datei ifadditional revenues are 2. Reduce thel Utility Tax levy rate (specify %) and impose levy on all water, sewer and stormwater utilities or, only on City Reducing the utility taxi rate to 3% and extending the levy on all water, sewer and stormwater utilities serving Bainbridge Island customers is estimated to generate about $450,000 annually. The impact on City-owned water, sewer and stormwater utilities would be a 3%1 reduction in expenses. Water and sewer utilities not owned by the City would experience. a 3%i increase in costs. This option is recommended as it would continue to generate needed General Fund revenue, reduce City-owned utility costs, and create more equity among the utilities who are benefitting from using the  needed to support service delivery. water, sewer and stormwater utilities.  public right-of-way fori infrastructure.  7    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES 3. Reduce the Utility Tax levy rate to 0%.  TUESDAYJULY 12,2016  Reducing the utility tax levy ratei is different than eliminating the utility tax. Reducing thel levyt to 0% would result ina General Fund revenue loss of $500,000 annual. This option is noti recommended due to the impact on General Fund  revenues.  4. Continue Utility Tax levies as currently imposed -1 no action.  Taking no action would result in continuation ofthe 6% utility tax currently levied on the City-owned water, sewer and stormwater utilities. The Utility Advisory Committee has raised a valid issue regarding thei inequity ofl levying the utility tax only on City-owned utilities. However, the utility taxi is an important component oft the City'sr revenue mix. This  option is not ai recommended: action. Continue levies as currently imposed;  Staff requested receiving direction regarding actions tol be taken, including:  Prepare ordinance tol levy utility taxes on all water and sewer utilities; Reduce utility tax rate on City water, sewer and stormwater utilities to 0%.  Prepare ordinance reducing utility tax levy (specify rate) and to levy utility taxes on all water and sewer utilities;  Deputy Mayor Medina said he was drawn to Option 1.  Councilmember Blossom said she would consider levying 3% on all utilities. Councilmember Scott was strongly in favor of Option 1 across the board.  Councilmember Roth liked the notion ofa4 4 or 5-year plan transition to a1 revenue neutral basis.  Councilmember Peltier like the approach of extending the tax to all the utilities then reduce it and if we have to raise it we could do Councilmember Townsend said his principal concern was that of equality, being cognizant of our patchwork of water utilities and Mayor Tollefson felt that extending the tax to all water and sewer utilities and reducing it to 3% would be consistent with the Councilmember Scott felt this was an equity issue. He thought 6% was ai fair rate and what has been unfair is that there are a many Councilmember Blossom noted that there are 144 Group B water systems so there are many systems that would probably still not Deputy Mayor Medina spoket to the many capital projects which cannot be paid for by our current revenue stream and staffing Councilmember Peltier suggested ai tax on services related to wells and septics and reducing the load on stafft by limiting the  that.  whether or not we are handling that appropriately.  Utility Advisory Commitceirsommeditio, which would be roughly revenue neutral.  utilities that are not payingi it.  have toj pay. She believed this was a regressive tax,  level.  number ofp permits processed every: year.  MOTION: Imove we extend our City Electric, Water, Sewer and Stormwater Taxes  islandwide and keep the rate at 6%. SCOTT/MEDINA  City Manager Schulze suggested the City Council direct stafft toj prepare an ordinançe that would amend the existing code to extend the 6%1 rate islandwide. Both Councilmember Scott as the motion maker and Deputy Mayor Medina as the seconder accepted the  modification.  The motion carried 4-3 with Councilmember Blossom, Peltier and Tollefson voted against.  8    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,JULY: 12,2016  7. CONSENT AGENDA 10:17 PM A. CONSENT AGENDA COVER SHEET  B. ACCOUNTS PAYABLE VOUCHER AND PAYROLL APPROVAL Accounts Payable. EFT and ACH Check Numbers 224-226, Manual Check Numbers 341860-341865 and Regular Run Check Numbers 341866-341963 for at total of $256,581.89. Payroll Direct Deposit Check Numbers 036248-036364, Regular Run Check Numbers 107681-107688, Vendor Check Numbers 107689-107703, Void Miscellaneous Check Number 107704, Miscellaneous Check Number 107705, Vendor Check Number 107706 and Federal Tax Electronic Transfer for ai total of C. - REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, JUNE: 28, 2016 D. REGULAR CITY COUNCIL STUDY SESSION MINUTES, JULY 5, 2016  $645,851.17.  E. SECTOR SERVICE LEVEL AGREEMENT WITH WASHINGTON STATEI PATROL, AB 16-096-POLICE F. WATERFRONT PARK: MEMORIAL BENCH DONATION AGREEMENT, AB 16-092-F PUBLIC WORKS The City and Denise McKelvey have agreed toj place al bench ini memory of. Jessie Hey at Waterfront Park.. Jessie Hey (1929-2014) was al longtime Bainbridge Island resident and community activist. Jessie had a passionate drive tol keep the essence of Bainbridge Island alive from protecting our shorelines toj preserving and supporting local businesses. She was a former Winslow City Councilmember and member ofthe Bainbridge Island Concerned Citizens group. The City shall be responsible for the maintenance of the bench and the terms oft the Agreement shall be five years or until the property iss G. ORDINANCE NO. 2016-13, RELATINGTOTHE CITY'S FIRE CODE, AB 16-097-PLANNING H. ORDINANCE NO. 2016-14, RELATINGTOTHE: CITY'S BUILDING CODES AND REGULATIONS, I. ORDINANCE NO. 2016-07, CHANGING THEI PUBLIC WATER ACCESS COMMITTEE NAMETO: MARINE  old.  AB 16-098 - PLANNING  ACCESS COMMITTEE, AB 16-095-1 EXECUTIVE  MOTION: Imove the City Council approve consent agenda items  A through. I as presented. ROTH/SCOTT: Motion carried 7-0.  8. COMMITTEE REPORTS 10:181 PM No additional reports were given.  A. DESIGN REVIEW BOARD LIAISON NOTES, JUNE 20, 2016- - COUNCILMEMBER PELTIER B. UTILITY ADVISORY COMMITTEE LIAISON NOTES, JUNE 27, 7016-COUNCILMEMEMBERTOWNSEND  9. REVIEW UPCOMING COUNCIL MEETING AGENDAS 10:181 PM City Manager Schulze review the. July 261 business meeting agenda and upcoming calendar.  Councilmember Blossom suggested adding Transportation Benefit District funds andj possible bond as well as a discussion on VRBO/Airbnb restrictions. Mayor' Tollefson suggested adding the VRBO/Airbnb item to a future study session. Mayor Tollefson asked that the Suzuki ecological assessment RFP be added to the calendar. City Manager Schulze responded Councilmember Peltier indicated he would will bring forward information about impact fees to the next meeting. He also wanted tol have a discussion ofa an independent citizen's police oversight committee or commission. Mayor" Tollefson responded the City Council spend al lot of time talking about that last year and came up with the Public Safety Committee wel have now. Councilmember Scott indicated after thei recent shooting at thel Pulsel Nightclub in Orlando, he wondered whether the City could take action tol ban assault weapons or at least regulate them. He asked whether he could prepare ai resolution that would urge our  staff was working on it and would be bringing it forward soon.  State legislators to regulate assault weapons. The item was added tot the next agenda.  9    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,JULYI 12,2016  10. FOR THE GOOD OF THE ORDER 10:301 PM  There was al brief discussion: regarding adhering tol Robert's Rules versus having a conversational style. The topic willl be added to  the retreat agenda.  11. ADJOURNMENT 10:33 PM Mayor Tollefson adjourned the meeting at 10:33 PM.  Slnbl-an behalfaf  Val Tollefson, Mayor  Tonlind loso Rosalind D. Lassoff, City Clerk  10