REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13,2016  ITEMS DISCUSSED  1. EXECUTIVE SESSION 4. PUBLIC COMMENT 5. CITY MANAGER'S REPORT  A. CURRENT. ANDI POTENTIAL LITIGATION (RCW 42.30.110(1)0) 2. CALLTO ORDER /ROLL CALL/PLEDGE OF ALLEGIANCE  3. ACCEPTANCE ORI MODIFICATION OF THE AGENDA/CONFLICT OF INTEREST DISCLOSURE  6. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ONI EACHI ITEM) SHORELINE MASTER PROGRAM (SMP), AB 16-046 - PLANNING 7. NEW: BUSINESS (PUBLIC COMMENT INVITED ONI EACHI ITEM)  A. ORDINANCE NO. 2016-06, REVISING AQUACULTURE REGULATIONS. AS Al LIMITED AMENDMENTTOTHE A. URBAN FORESTRY RESTORATION PROJECT COOPERATIVE AGREEMENT, AB 16-126-1 PLANNING B. ORDINANCE NO. 2016-27, EXTENDINGTHE: HOUSING DESIGN DEMONSTRATION PROJECT PROGRAM; AMENDING BAINBRIDGE ISLAND MUNICIPAL CODE CHAPTER 2.16.020.Q - PLANNING C. RESOLUTION NO. 2016-15, AMENDMENTS TOI PLANNING ADMINISTRATIVE MANUAL REGARDING SUBMITTAL REQUIREMENTS FORI LANDI USEI PERMITS, AB 16-071 -I PLANNING H. HOUSING TRUST FUNDING GRANT APPLICATION, HOUSING RESOURCES BAINBRIDGE, AB 16-135- D. ORDINANCE NO. 2016-19, AMENDING BAINBRIDGE ISLAND MUNICIPAL COURT CHAPTER 5.08, RELATED E. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BAINBRIDGE ISLAND. AND THE KITSAP COUNTY SHERIFF'S OFFICE, REGISTERED SEX/KIDNAPPING OFFENDER ADDRESS AND! REGISTRY F. INTERAGENCY AGREEMENT BETWEEN THE WASHINGTON STATE INTERNET CRIMES AGAINST CHILDREN TASK FORCE, THE CITY OF BAINBRIDGE ISLAND AND' THE: SEATTLE POLICE: DEPARTMENT, G. INTERAGENCY AGREEMENT BETWEEN THE CITY OF BAINBRIDGE ISLAND AND THE WASHINGTON DISCUSS CITY MANAGER PERFORMANCE EVALUATION PROCESS, AB 16-136-N MAYOR TOLLEFSON  EXECUTIVE [MOVED UP]  TO UTILITY TAXES, AB 16-128- - FINANCE  VERIFICATION PROGRAM FOR: 2016-2017, AB 16-130- - POLICE  AB 16-130-POLICE  STATE TRAFFIC SAFETY COMMISSION, AB 16-131 -] POLICE  8. CONSENT AGENDA  A. CONSENT AGENDA COVER SHEET  B. ACCOUNTS PAYABLE VOUCHER ANDI PAYROLL APPROVAL - REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, AUGUST23,2016 D. REGULAR CITY COUNCIL STUDY SESSION MINUTES, SEPTEMBER 6, 2016  E. INTERLOCAL. AGREEMENT WITH BAINBRIDGE ISLAND FIRE DEPARTMENT FOR FUEL: SERVICES, A. UTILITY ADVISORY COMMITTEE LIAISON: NOTES, AUGUST 22, 2016-C COUNCILMEMBER B. ADHOCTREE ANDI LOW IMPACT DEVELOPMENT COMMITTEE: LIAISON NOTES, SEPTEMBER 7,2016-  AB 16-121 - PUBLIC WORKS 9. COMMITTEE REPORTS COUNCILMEMBER PELTIER 11. FOR THE GOOD OF THE ORDER 12. ADJOURNMENT 1. EXECUTIVE SESSION  10. REVIEW UPCOMING COUNCIL MEETING AGENDAS  A. CURRENT ANDI POTENTIALI LITIGATION (RCW 42.30.110(1)0)) 6:30F PM  At6:301 PM, Mayor Tollefson adjourned the meeting to an executive session to discuss current and potential litigation pursuant to RCW 42.30.110(1)0) with Councilmembers Medina, Peltier, Roth and' Townsend and legal çounsel present. Councilmember Blossom arrived shortly after 6:45 PM. The door to Council Chambers was posted and the recording system was turned off. At 6:54 PM, Mayor Tollefson announced the executive session would be extended until 7:101 PM. No action was taken.  2. CALLTOORDER/ROLL CALL/PLEDGE OF ALLEGIANCE 7:14 PM  Mayor Tollefson reconvened the meeting at 7:151 PM with aforementioned Councilmembers present. Councilmember Scott had an  excused absence. City Clerk Lassoff monitored the recording of the meeting and prepared the minutes.    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13,2 2016 Everyone stood for thel Pledge of Allegiance.  3.A ACCEPTANCE ORI MODIFICATION OF THE AGENDA/CONFLICTOF: INTEREST DISCLOSURE 7:15P PM  MOTION: Accept the agenda as presented. ROTH/TOWNSEND: Motion carried. 5-0.  Mayor Tollefson indicated City Council would be discussing amendments to the planning department administrative manual and Elise Wright, 107991 Billl Point View, invited citizens toj participate in National Beach Clean-Up Day this coming Saturday.  disclosed he had a matter pending in that department.  4. PUBLIC COMMENT  Crystal Rich read from aj prepared statement regarding farming on thei island.  5. CITY MANAGER'S REPORT7:02 PM  City Manager Schulze reported Joe Levan would bej joining the city next week as the new city attorney and thanked Ogden Murphy Wallace for their legal services during the interim period. He shared information on upcoming City meetings.  6. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ON EACHI ITEM)  A. ORDINANCE NO. 2016-06, REVISING AQUACULTURE REGULATIONS AS Al LIMITED AMENDMENT1 TO Senior Planner Carr gave a briefu update on the SMP. Aquaculture Limited Amendment and provided an overview onj potential policy/regulatory language under consideration since the. August 23, 2016 City Council meeting and public hearing. She Mayor Tollefson suggested language in Section 1.3.4 be amended to read: Relationship to Other Plans and Regulations: This SMP will be applied consistent with all applicable federal, state and local laws, including without limitation those affecting tribal rights. He also suggested language be added to. A/P 1: ...action taken there under shall affeet be inc derogation of Suquamish Tribal Treaty rights to which the United States is aj party. Senior Planner Carr indicated she would reach out to the tribe for clarification. Marci Lagerlof, 104261 NE South Beach, shared her concern with allowing non-commercial. aquaculture operations to apply fora conditional use permit allowing them to exceed 200 square feet. She requested that particular footnote on' Table 15 be removed. She suggested not allowing the practice ofa applying shell, gravel or rock to provide a firmer substraight for oysters or clams citingt the Lisa Macchio, 5315 Old Mill Road, wondered why her comments have not be addressed in the documents being presented this Elise Wright, 107991 Billl Point View, shared her concern with thej proposed language contained in 5.2.2.4 and protecting public tidelands. She was also concerned about emerging information from Norway and! British Columbia on open water net] pen aquaculture and how they have found that the ecological impacts are devastating. She recommended the City look very carefully at Maradel Gale, Winslow resident, strongly supported the ability of our shorelines to support the three species off forage fish notj just during certain months oft the year. She felt it was critical that City Council specifically request some oft thes suggestions submitted City Council and staff discussed three out of four suggested motions brought forward by Councilmember Peltier's which were not  THE SHORELINE MASTER PROGRAM (SMP), AB 16-046-1 PLANNING 7:26 PM  summarized next steps.  Public Comment  importance ofp protecting forage fish habitat.  evening. She cautioned using language that would be left open to significant interpretation.  minimizing any new open water net pen aquaculture.  and get them on the record because they keep getting passed by.  voted on:  2    REGULARCITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13,2016  #1: To clarify the allowable size ofnon-commercial aquaculture operations, I move: Onl Exhibit 1 (table) tor remove: note 21 relating to conditional use permit and to change language in 5.2.4.1.dtor read: "Non-commercial aquaculture is limited to a cultivation area ofno greater than 200 square feet." Also, with regard toi non-commercial aquaculture, Imove to include the following requirement for non-commercial aquaculture be added under Policies 5.2.4.2.1 that: g. There is no frosting (shell, gravel or rock) applied to the #3: The negative impacts of confined Atlantic salmon feeding/raising operations have been well documented, including transmission of parasites and viruses to native fish populations. To protect our shorelines from further expansion of net pen. Atlantic salmon aquaculture and theiri inherent adverse impact upon the marine environment, I move: In Prohibitions 5.2.3.3. to change language tor read: "New commercial net pen aquaçulture.", eliminating "in waters less than (70) feet deep." #4: Toj provide greater protection for forage fish spawning areas and habitat, I move: That Council add under Prohibitions, appearing as 5.2.3.8., "Commercial aquaculture in/on known forage fish spawning sites.", and under 5.2.5 Regulations -Location and) Design Standards, the deletion of5.2.5.h and 5.2.5.1, both of which would provide for the conditional placement of aquaculture in! known forage fish spawning sites, andi items j, k, and lunder 5.2.5 then being appropriately re-numbered. Mayor Tollefson suggested City Council come prepared to discuss motions at the September 27 meeting.  substrate.  7. NEW: BUSINESS (PUBLIC COMMENT INVITED ONI EACH ITEM)  A. URBAN: FORESTRY RESTORATION PROJECT COOPERATIVE AGREEMENT, AB 16-126-PLANNING Senior Planner Carri introduced thei item. She explained the Department ofl Natural Resources' (DNR) Urban Forestry Restoration Project provides Puget SoundCorps crews to local governments to conduct urban forest maintenance and restoration. Crews work at one or more project sites for a 4-week period. DNR estimates the crew's workl has a value of $20,000. The crew will work at two shoreline restoration sites, Strawberry Plant Park and Pritchard Park Bluff East, as well as other City-owned properties as  8:261 PM  needed. Work willi include invasive species removal and native plant installation.  No public comment was offered.  MOTION: Imove that the City Councilj forward the Cooperative. Agreement with the Washington Department of Natural. Resources (DNR)) for participation in the Urban Forestry Restoration. Project to the September 27, 2016 consent  agenda.  PELTIER/ROTH: Motion carried 6-0.  B. ORDINANCE NO. 2016-27, EXTENDINGTHE HOUSING DESIGN DEMONSTRATION PROJECT PROGRAM; AMENDING BAINBRIDGE ISLAND! MUNICIPAL CODE CHAPTER 2.16.020.Q-P PLANNING Senior Planner Sutton introduced the ordinance. Thel Housing Design Demonstration Projects (HDDP) program (Ordinance No. 2009-06) was approved in August 2009 after almost a year of discussion at the Planning Commission, Council Land Use Committee, and finally, the City Council. Asap pilot program, the original sunset date was August, 2012. The demonstration ordinance was extended once for a year, and then again in 2013 for another three years with the approval of Ordinance No. 2013-25. Thel HDDP: program is codified in Bainbridge Island Municipal Code (BIMC) Section 2.16.020.Q and currently expires at the end of  8:28PM  2016. The draft ordinance revises thel HDDP program in three ways as follows:  1. The Winslow Study Area oft the Winslow Master Plan (WSAWMP) and the Winslow Sanitary Sewer Area mostly overlap, but not entirely. The existing HDDP program applies toj properties located in either area, notj just toj properties that are in both areas. The draft ordinance would revise the Applicability section to apply toj properties ini the Winslow Sanitary Sewer. Area alone. This change recognizes that the nature ofl HDDP projects requires connection toi thej public 2. The draft ordinance extends the program for one more year, until the end of2017. Thel Planning Commission and City Council are currently working to complete the Comprehensive Plan update, required by the Growth Management Act, by the end of2016. The Draft 2016 Comprehensive Plan includes several policies related to promotion ofs sustainable development and affordable! housing. Thel HDDP program is proposed for a one-year extension, until the end of2017, to allow time to review the program and compare itt to other affordable housing tools  sewer system.  the City may choose to utilize, as envisioned by the draft 2016 Comprehensive Plan.  3    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13, 2016  3. The existing HDDP program integrates earned' "points" for Low Impact Development (LID) practices and meeting the requirements ofthe Washington State Department of Ecology (DOE) Stormwater Management Manual for Western Washington. The City is working on state-required LID regulations that will require all development to meet the updated DOE Stormwater Management Manual, therefore no "points" should be earned in meeting those  requirements going forward.  Public Comment  Charlie Wenzlau did not understand why there was reluctance in making the program permanent. He felt ifit was not permanent Jonathan Davis said thel HDDP program has allowed for some incredible projects and flexibility. He asked thati it be made Following al brief discussion, City Manager Schulze suggested as solution to comments raised regarding the Winslow sewer service area was to add language referring to the existing area as oft the date ofadoption and that way any expansion would not  then its should' be extended at least three years instead of one. permanent and, ifr not, extend it for another three years.  automatically expand the program.  There was consensus to move this item forward to aj public hearing and discussion.  MOTION: Imove the City Council. schedule a) public hearing, for Ordinance No. 2016-27  for September. 27.  PELTIER/TOWNSEND: Motion carried 6-0.  - RESOLUTION: NO. 2016-15, AMENDMENTS TO PLANNING ADMINISIRATIVE MANUAL REGARDING SUBMITTAL, REQUIREMENTS FOR: LAND USE: PERMITS, AB 16-071 -] PLANNING 8:541 PM Senior Planner Sutton introduçed the resolution which outlines submittal requirements forl land use permits administered by the Department of Planning and Community Development. This update adds land use permits that were left out ofthe original iteration oft the Administrative Manual. This update also makes changes to the' "Landscape Plan" submittal requirements, related to submission of the ISA valuation for retained trees. Those changes have been discussed and referred by the Tree andl Low Impact Katy Bigelow, Arborist, felti it was critical for applicants tol have an understanding that they might be doing a major or minor tree pruning or at tree removal job specific to a big project or one tree. She asked City Council to consider removing the board feet recommendation as it's something she and other arborist's have trouble calculating. She suggested perhaps defaulting to tree credits or a diameter ofs six trees being removed rather than board feet. She also commented on the evaluation for post-construction values which is actually impossible to do and suggested the language to either the value oft the trees as they stand today or  Development Ad hoc Committee. Public Comment  post-construction.  Following brief questions and comments, a motion as made.  MOTION: Imove the City Council forward Resolution No. 2016-15 to the September. 27, 2016.  agenda.  BLOSSOMIPELTIER: Motion carried 6-0.  H. HOUSING TRUST FUNDING GRANT APPLICATION, HOUSING RESOURCES BAINBRIDGE, AB 16-135- City Manager Schulze explained that Housing) Resources Bainbridge (HRB) has submitted al letter requesting a grant of$75,000 from the Affordable Housing Fund. The 2015-20161 Biennial Budget included at total of $200,000 in the Affordable Housing Fund, of which, $150,0001 has been provided tol HRB for Ferncliff Phase 2. Therefore, a budget amendment of $25,000 would bei required Whitney Rearick, HRB. Executive Director, explained construction costs have gone up dramatically since the time thej project was first budgeted in 2014 and coupled with an unusually wet winter brought about their request for additional funding.  EXECUTIVE [MOVED UP] 9:27 PM  to fully meet the grant request from HRB.  Public Comment  4    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY,SEPTEMBEK 13,2016  Following brief questions and comments, a motion as made.  MOTION: Imove toj place the consideration ofas grant from the Affordable Housing Fundi to Housing Resources Bainbridge, ini the amount of875,000, for the Ferneliff  Phase 2 Project to the September 27, 2016 consent agenda. BLOSSOM/TOWNSEND: Motion carried 6-0.  D. ORDINANCE NO. 2016-19, AMENDING BAINBRIDGE ISLAND MUNICIPAL COURT CHAPTERS 5.08, Finance Director Schroer introduced the ordinance. The City Council July 12,20161 meeting included a discussion oft the City's utility tax, which is currently levied only on City-owned utilities. At1 that meeting, Council also considered information provided by the City Manager on the City's financial position. Att the conclusion of the discussion, the City Council directed stafft to bring forward an ordinance tol levy a 6%t tax on water and sewer utilities not owned by the City for the purpose of providing sufficient Previously, the Utility Advisory Committee (UAC) recommended that the City Council eliminate the utility tax charged against the City's water, sewer and stormwater utility based on thel UAC's concern that the tax is not equitable because it only applies to the City'sutility systems and does not apply to the other water and sewer systems providing service tol Island customers. Thej proposed ordinance increases the equity ofthe tax by extending it to utilities owned and operated by other organizations. It modifies the Bainbridge Island Municipal Code toi include all Group. A water utilities with more than 50 active connections, and to all sewer utilities. The tax will be collected by the utilities andi remitted to the City ofl Bainbridge Island quarterly. Following brief comments and questions, staff was asked to study extending the utility tax to Group B utilities as well as preparea cost benefit analysis. The city attorney was also asked to review the taxing of storm water utilities.  RELATEDTO UTILITY TAXES, AB 16-128- - FINANCE 9:35 PM  revenue to carry on the normal activities of the City.  No public comment was offered.  MOTION: Imove that the City Council forward Ordinance. No. 2016-19 amending the City's municipal code and applying the City's utility tax to utilities not owned by the City to the September. 27, 2016, City Council meeting and schedule a public hearing on that  same day.  TOWNSENDROTEE Motion carried 6-0.  E. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BAINBRIDGE ISLAND. ANDTHE KITSAP COUNTY SHERIFF'S OFFICE, REGISTERED SEX/KIDNAPPING OFFENDER ADDRESS AND REGISTRY VERIFICATION PROGRAM FOR: 2016-2017, AB 16-130-1 POLICE9:48PM Police ChiefHamner explained that thel Bainbridge Island Police Department (BIPD) has been participating ini the "Registered Sex/Kidnapping Offender Address Verification" program, grant funded through the Washington State Association of Sheriffs and Police Chiefs and facilitated by thel Kitsap County Sheriff's Office since. the program's inception. in 2008. The department wishes to participate once again, which requires that BIPD officers make façe-to-face contact with registered offenders living on Bainbridge Island, report the results oft that contact to thel Kitsap County Sheriff's Office and issue press releases tol local media regarding any new Level III offenders who move tol Bainbridge Island in exchange for a portion of the state award, or ai minimum of$1,000.  No public comment was offered.  MOTION: Imove that the City Council forward the Registered. Sex/Kidnapping Offender. Address & Residency Verification. Program) for 2016/2017 to the  September. 27, 2016 consent agenda. TOWNSEND/ROTH: Motion carried 6-0.  F. INTERAGENCY AGREEMENT BETWEEN THE WASHINGTON STATE: INTERNET CRIMES AGAINST CHILDREN TASK FORCE, THE CITY OF BAINBRIDGE ISLAND AND' THE SEATTLE POLICE Police ChiefHamner explained thisi item was not: ready for action pending further clarification. The item was removed from the  DEPARTMENT, AB 16-130 - POLICE 9:50PM  agenda.  5    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13, 2016  G. INTERAGENCY AGREEMENT BETWEEN THE CITY OF BAINBRIDGE ISLAND AND THE WASHINGTON Police ChiefHamner explained thej purpose oft the agreement is toj provide grant funding for agency toj participate in multi- jurisdictional, high visibility enforcement traffic safety emphasis patrols in support of Target Zero priorities. The Target Zero Manager assigned to the agency coordinates the scope of work with the goal ofr reducing traffic related deaths and serious injuries.  STATE TRAFFIC SAFETY COMMISSION, AB 16-131-F POLICES 9:51F PM  No public comment was offered.  MOTION: Imove that the City Council, forward the Interlocal. Agreement with Washington, State Trafic Safety Commission to the September 27, 2016 consent  agenda.  TOHNSENDPELTIER: Motion carried 6-0.  DISCUSS CITY MANAGER PERFORMANCE EVALUATION PROCESS, AB 16-136-MAYORTOLLEFSON City Council discussed the merits of whether to use ai facilitator and, ifso, to what extent. There was consensus for Mayor  9:54 PM  Tollefson to work with thel human resources manager on a proposal. 8. CONSENT AGENDA 10:021 PM A. CONSENT AGENDA COVER SHEET  B. ACCOUNTS PAYABLE' VOUCHER ANDI PAYROLL APPROVAL  Accounts Payable EFT Check Number 230, ACH Check Numbers 231-232, Manual Check Numbers 342341-342357 and] Regular Run Check Numbers 342358-342472 forat total of $662,599.67. Retainage Release Check Number 152 in the amount of $865.54. Travel Advance Check Number 76 ini the amount of$300.00. Payroll Direct Deposit Check Numbers 036721-036838, Regular Run Check Numbers 107765-107770, Vendor Check Numbers 107771-107784 and Federal Tax Electronic Transfer for at total of$626,471.29. C. REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, AUGUST23, ,2016 D. REGULAR CITY COUNCILSTUDY SESSION MINUTES, SEPTEMBER 6, 2016 E. INTERLOCAL AGREEMENT WITH BAINBRIDGE ISLAND FIRE: DEPARTMENT FOR: FUEL  SERVICES, AB 16-121 -] PUBLIC WORKS  MOTION: Imove the City Council approve consent agenda items A through E  as presented.  ROTH/PELTIER: Motion carried 6-0.  9. COMMITTEE REPORTS 10:02PM  A. UTILITY ADVISORY COMMITTEE LIAISON NOTES, AUGUST: 22, 2016-C COUNCIEMEMBER B. ADHOCTREE. AND LOW: IMPACT DEVELOPMENT COMMITTEE LIAISON NOTES, SEPTEMBER 7,2016  TOWNSEND  COUNCILMEMBER PELTIER  There was briefremarks made based on earlier public comment regarding farming. Mayor Tollefson invited everyone to stop by the city's booth at the Harvest Fair on September 25. 10. REVIEW UPCOMING COUNCIL MEETING AGENDAS 10:071 PM City Manager Schulze review upcoming meeting agendas and long-range calendar.  11. FOR' THE GOOD OF THE ORDER 10:141 PM  Deputy Mayor Medina shared the City of Poulsbo willl be hosting AWC toj present an award tol Representative Sherry Appleton at Mayor Tollefson added that as similar event was being scheduled for Representative Drew Hanson at Bainbridge Island. Councilmember Roth noted KRCC would be holding al legislative reception at the casino November 10 at 6:30PM.  the start oft their meeting.  6    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, SEPTEMBER 13, 2016 12. ADJOURNMENT  Mayor Tollefson adjourned the meeting at 10:171 PM.  lodtindD. LasD  Rosalind D. Lassoff, City Clerk  7