STUDY SESSION MINUTES TUESDAY,UNE7,2016  ITEMS DISCUSSED  1. EXECUTIVE SESSION: CURRENT AND: POTENTIAL LITIGATION (RCW 42.30.110(1)0) 3. ACCEPTANCE OR MODIFICATION OF AGENDA/CONFLICT OF INTEREST: DISCLOSURE  2. CALLTO ORDER/ROLL CALL 4. PUBLIC COMMENT ON AGENDA ITEMS 5. CITY COUNCIL DISCUSSION  A. SETTLEMENT AGREEMENT WITH THE SEC [ADDED] REGULATIONS, AB 16-046 - PLANNING  A. REVIEW PROPOSED REVISIONS TOTHE SHORBLINE MASTER PROGRAM AQUACULTURE B. BIENNIAL BUDGET: INITIAL CAPITAL IMPROVEMENT PLAN: REVIEW, AB 16-082 FINANCE/ BIENNIAL BUDGET: COMMUNITY SERVICES FUNDING, AB 16-083 - FINANCE D. REVIEW AND. AFFIRM COST ALLOCATION METHODOLOGY, AB 16-084-FINANCE  PUBLIC WORKS  E. POLICEI FACILITY1 NEXT STEPS, AB 14-008 EXECUTIVE  6. FOR THE GOOD OF THE ORDER 7. ADJOURNMENT  1. EXECUTIVE SESSION: CURRENT AND POTENTIAL LITIGATION (RCW 42.30.110(1)0)) 6:151 PM Deputy Mayor Blossom called anl Executive Session to order at 6:15 p.m. with Councilmembers Tollefson, Medina, Peltier, Roth, Scott and Townsend and City Attorney Marshall to discuss Current andl Potential Litigation (RCW 42.30.110(1)0) in the Planning Conference Room. Thei recording system was turned offa and a notice was posted on the door to the Council Chamber. Deputy Mayor Blossom called the meeting to order at' 7:05 p.m. with Councilmembers Tollefson, Medina, Peltier, Roth, Scott and' Townsend present. Records Management Coordinator Jahraus monitored the recording of the meeting andj prepared the 3. ACCEPTANCE ORI MODIFICATION OF AGENDA/CONFLICT OF INTEREST DISCLOSURE 7:05F PM  The executive session adjourned at' 7:00 p.m. No action was taken. 2. CALLTO ORDER/ROLL CALL7:05 PM  minutes.  Mayor Tollefson added item 4A, New Business regarding a settle agreement with the SEC.  MOTION: Imove to accept the agenda as amended. TOLLEFONTOMASEND: The motion carried7-0. MOTION:. Imove to accept the agenda. SCOTTMEDINA: The motion carried7 7-0.  4. PUBLICCOMMENT ON AGENDA ITEMS 7:061 PM  Jerry Stevenson, provided comment on the new police and court facility. Would like to see the City get on with it; Prop 1 was defeated because of location. Wei need to settle on location, preferably the current location, and vote on funding in November. Doug Rauh also supports the current location for the new police facility and has provided Council with ai memo. Marcia Lagerloef, South Beachl Drive, gave comment on aquaculture. Her message is cautionary ands shel knows there is a desire to "get on with it," but council should take their position seriously. Her concern with commercial aquaçulture ist that itt totally Wayne Daly, Blue Heron Avenue, echoes the comments ofl Marcia. Council has as serious responsibility to the people of Puget  changes what thes shoreline looks like.  Sound.  Phil Rockefeller, giving comment on the feasibility study oft the municipal power initiative.  Lisa Macchio, Old] Milll Road, speaking to the aquaculture item. She urged the Council tol listen to the science, not the politics.  4A. NEW: BUSINESS 7:22PM  SECURITIES, AND EXCHANGE COMMISSION SETTLEMENT AGREEMENT [ADDED]  MOTION: Imove the City Council direct the City Manager to execute on behalfoft the municipality the offer ofs settlement with the United States Securities and Exchange Commission in connection with the investigation oft the commission. TOLLERSON/ROTHR The motion carried7-0.    STUDY SESSIONI MINUTES TUESDAY,UNE7,2016  5. CITY COUNCIL DISCUSSION 7:231 PM  A. REVIEW PROPOSED REVISIONS TO' THE: SHORELINE MASTER PROGRAM AQUACULTURE Senior Shoreline Planner Carr addressed Council to discuss draft revisions to the Shoreline Master Program (SMP) aquaçulture B. BIENNIAL BUDGET: INITIAL CAPITAL IMPROVEMENT PLAN REVIEW, AB 16-082-F FINANCE! Public Works Director) Loveless addressed the Council regarding the current draft summary pages oft the CIP included in the City Council agenda packet. This information willl be refined throughout the summer months. It's anticipated that the CIP willl be reviewed by the Planning Commission in. July, and brought to Council for approval, in conjunction with thel biennial budget, in The purpose oft this item is toj provide Council with an indication oft the project lists under development at this time, and to solicit BIENNIAL BUDGET: COMMUNITY SERVICES FUNDING, AB 16-083-1 FINANCE 9:061 PM Deputy City Manager Smith addressed Council. To assist inj preparation of the preliminary budget, staff has prepared an initial version of the City's 2017-18 Community Services expenditures for review and discussion by the City Council. A draft oft this budget section is provided for review, and the 2015 Community Services section of the budget is also provided for comparison.  REGULATIONS, AB 16-046 - PLANNING  policies and regulations in advançe ofi review oft the proposed SMP limited amendment.  PUBLIC WORKS 8:16PM  the fall.  feedback on the draft information.  Community Services expenditures include three categories ofactivity:  Cultural  Health, Housing & Human Services Community & Economic Development  Spending levels in this preliminary 2017-18 draft reflect the: following approach:  Cultural  Public. Art projects: none identified for 2017-18 Public. Art program management: nonei identified for 2017-18 Public Art conservation: amount same as 20161 budget Community Grants: amount same as 2016 budget Grant Administration: amount consistent with cost for 2015 grant cycle Housing Trust Fund: amount same as 20161 budget has eliminated the need for these services Community & Economic Development KEDA: amount same as 2016 budget Transfer tol BIDA: same as actual 2016 expenditures Economic Development: same as 2016 budget  Health, Housing & Human Service  IMHPI Management: following discussions with] HRB, thisi iteml has been removed asi the sale ofmost Citys shares IMHP Rent Default: due tot the reduction in the number of City shares, this item has been removed  Previously, expenses related to public access broadcast (BKAT) and PEG operations were presented within Community Services. For 2017-18, these items willl be included within thel Information Technology section of the City budget. D. REVIEW AND AFFIRM COST ALLOCATION METHODOLOGY, AB 16-084-1 FINANCE 9:251 PM Senior Financial Analyst Dunscombe provided Council with an overview of the methodology used byt the City to affirm cost allocation. The City shares some costs across one or more ofi its operating funds because some costs provide benefit toi more than one fund at the same time. This practice is called "cost allocation", and is used by many organizations, both public andj private. Cost allocation is considered al best practice for municipal financial management, andi is consistent with the City'si financial policies. There are a range of possible approaches to cost allocation; each organizationi must choose ai methodology that matches The City of 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 al basis to distribute costs. Examples of numerical proxies usedi in the City's methodology include operating expense by fund, a count ofCouncil agenda items, and the number of cash receipts processed.  its preferences while also complying with applicable guidance from regulatory agencies.  2    STUDY SESSION MINUTES TUESDAY,UNE7,2016  The cost distribution calculated through the cost allocation methodology forms al basis for the City's budget, which ist the reason for staff's presentation to Council tonight. In addition, the City's financial policies inçlude a Council review and affirmation of The Cost Allocation Manual, included in the agenda packet, is still in draft form, as staff works to develop thej proposed budget City Manager Schulze led the discussion regarding a new facility for the Bainbridge Island Police Department which has been identified byt the City Council as a1 top priority for 2016. A number of! key pieces ofinformation: need to be confirmed with the City Council to move to next steps in the process, Prior to making a decision on potential sites, iti is important to understand the size oft the facility that is necessary. Questions have been raised regarding the size ofthe facility needed so, before proceeding The most recent space needs analysis was conducted by Mackenzie in 2015. Based on thel Mackenzie Study, the total building space needs for a police only facility is 18,520 sf. Total building exterior requirements would be 21,936 sf. This analysis takes into consideration 20-year growth projections, which includes at total department staff of36 full-time equivalent employees in 2036 compared to 26.151 FTE's in 2016. For comparison purposes, thel Mackenzie Study determined that the space needs for a In 2008, Dana Webber conducted. ai feasibility study for a combined police, municipal court and space for Bainbridge Island Fire Department. Total building space needs for this facility are. 33,800 sf. However, 11,000 sfoft thet total was programmed for the Municipal Court and Fire Department uses. Thel Police Department use was programmed for 16,110 sfwith 6,770 sfo ofs shared and community spaces. For a police only facility, approximately 3,000 sf oft thes shared spaces would need tol be included, which brings thet total space needs for the police facility to 19,110 sf or, very similar to the amount identified by the 2015 Mackenzie The Webber Study took ai much closer look at the existing Police Station site. In: fact, the purpose oft the study was to determine ifiti is, in fact, feasible to develop ai facility that accommodates' the program. Although the 2006 program included a combined Municipal Court/Police facility, aj police only facility will still face many ofthe same challenges (see Webber Study), including: Access to the site is difficult. The police operations and employee ingress and egress is located on Olympic Drive. The traffic design as iti is shown int the site layout is not a good design and will likely be revised by the engineers or require Development of off-site parking may require construction ofnew parking lots and underground stormwater detention on private property. Iti is not known whether the adjacent property owners would be cooperative. Underground As an urban site, thes stormwater detention on the site would need to be underground. Al larger, suburban site could accommodate stormwater detention with a pond, rather than at tank, which is much less expensive.  the information as part oft the biennial budget process.  for Council consideration this fall.  E. POLICE FACILITY NEXT STEPS, AB 14-008 - EXECUTIVE 10:061 PM  with site feasibility, Council direction regarding thei facility space needsi is requested.  combined Municipal Court/Police facility is 24,000 sf.  analysis.  expensive street-work such as additional left-turn lanes or other traffic mitigations.  stormwater detention is expensive.  Parcel "B" must be either moved or acquired.  Underground parking and building areas would need to be built. Underground parking is much costlier than surface parking. Additionally, the cost of the building with underground parking is much more expensive than building at- The site requires a multi-story building. Because of the security separations, the building will require separate, redundant, vertical circulation systems that would not be: required in al building that is built at-grade. The police operations int the secure parking area are not optimal. The sally-port is as single-entrance sally-port. By definition, and for operations purposes, a sally-port should be designed so1 that cars enter the sally-port and drive  grade.  forward through a second door to exit.  There is no room on the site fora any "public benefit" features.  3    STUDY SESSION MINUTES IUESDAY,UNE7,20I6  After further analysis, the 6001 Erickson Avenue site is not recommended for further consideration. In 1997, Miller/Hull Partnership conducted an analysis of the existing 600 Erickson. Avenue building to determine its suitability to serve as ar new City Hall. The analysis conçluded that the building was in very good condition andl high quality for a commercial office building, but would require significant structural enhancements to meet Essential Facilities requirements." Building renovation would involve increasing the building design lateral loads by 25%. This would then create a situation where floor andi roof diaphragms would be overstressed.. Additional blocking and diaphragm nailing would be needed to resist these loads. Likewise, the diaphragm collectors, chard members and their respective connections would also be overstressed. Therefore, additional struts and ties, and bolted connection would be required. These are just some oft the known issues, which could trigger more In addition to the remaining sites previously identified, ar new: site option has been identified. The site is located: north of Vineyard Lane immediately east of SR305. This site includes 3j parcels totaling 5.09 acres, which could be: modified through lot line adjustments. Further analysis is recommended: for this site since itl has access to SR: 305, is located very near the Winslow  upgrades to bring the building to current essential facility standards.  Mixed Use Area, and is large enough to accommodate program needs.  Other sites to consider include:  New Brooklyn Road  Site is adjacent to thel Fire District HQ, but is zoned Industrial. Very limited amount of industrial zoned  property on Bainbridge Island. Access to SR3 305 is reasonable, but not direct.  Wintergreen Walk (Visconsi)  Site is located: near back end of commercial area. Direct access to SR 305 would need to be authorized by WSDOT and would be close tol High School Road intersection, which might be problematic. Without direct SR3 305 access,  this site should not be given further consideration.  9191 Moran Road  Site is located adjacent to SR: 305, but direct access is problematic since site elevation is much lower than SR 305. Direct access to SR305 would require extensive construction of an access ramp for emergency access, which would add significant cost to the project. The existing church building is not structurally adequate for an. Essential  Facility andi is not large enough for program needs.  89541 Madison Avenue N  Site is located adjacent to SR 305 and access is available from Madison Avenue N, which is a controlled intersection. However, with current: zoning lot coverage restrictions, the sitei is not large enough to meet  program needs. 96571 NE Yaquina Avenue program needs.  Site is located adjacent to SR 305 and access is available from Madison Avenue N, which isa controlled intersection. Additional analysis would need to be conducted to determine ifs site is large enough to meet  The Cityi is at aj point where professional services are needed to conduct the remaining work related to site analysis and building design. Iti is recommended that the City Council direct the City Manager toj prepare a Request for Qualifications for Architectural Services. The scope of work will include, site evaluations, review of space needs analysis, and all design services. Ideally, in an effort to control costs the current list of8 potential sites would be reduced to 2 or 3 options prior to engagingi in additional site  evaluation work. 10:23PM  MOTION: Imove that council direct the City Manager to) prepare an RFOfor architectural. services to include ai review ofpast space needs analyses and depending on. sites examined, to consider the possibility of co-locating court and  police.  SCOTT/ROTH: The motion carried 6-1. (Peltier)  4    STUDY SESSIONI MINUTES IUESDAY,UNE7,206  6. FORTHE GOOD OF THE ORDER 10:491 PM  Councilmember Peltier made comment regarding the closing of Winslow Drugs and the Virginia Mason moving to Wintergreen  Walk.  7. ADJOURNMENT 10:521 PM The meeting was adjourned at 10:52 p.m.  Aube ValTollefson, Mayor  sn behalfct  Kelly Jahraus/Records  gha  5