REGULAR STUDY SESSION TUESDAY, OCTOBER 6,2015 1. EXECUTIVE SESSION 42.30.110(1)0D) 2. CALLTOORDER/ROLLCALL 4. CITY MANAGER'S REPORT 5. STAFF INTENSIVE  ITEMS DISCUSSED  A. REVIEW PERFORMANCE OF AN EMPLOYEE (RCW 42.30.110(1)(G); POTENTALITOATONRCN  3. ACCEPTANCE OR MODIFICATION OF AGENDA/CONFLICT OF INTEREST DISCLOSURE  A. ROCKAWAY BEACH OUTFALL STUDY, PROFESSIONAL SERVICES AGREEMENT, AB 15-181 B. DEEP CULVERT ASSESSMENT STUDY, PROFESSIONAL SERVICES AGREEMENT, AB 15-182 C. ORDINANCE NO.2015-20, UPDATETOSTORM AND SURFACE WATER MANAGEMENT CODE, BIMC D. ORDINANCE NO.2015-32, 2016-2021 CAPITAL FACILITIES PLAN, AB 15-185 E. ORDINANCE NO.: 2015-33, MID-BIENNIAL BUDGET MODIFICATIONS, AB 15-186 F. ORDINANCE NO.2 2015-35, DECLARATION OF SUBSTANTIAL NEED' TO INCREASE THE: REGULAR PROPERTY TAXI LEVY RATE. IN EXCESS OF THEI IMPLICIT PRICE: DEFLATOR FOR COLLECTION IN2016, AB 15-188 G. ORDINANCE NO.2015-27, PROPERTY TAXI LEVY FOR COLLECTION IN 2016, AB 15-180 H. ORDINANCE NO.2015-24, ELIMINATINGTHE, AUTOMATIC: ANNUAL FEE. ADJUSTMENTTOTHECITY'S ORDINANCE NO. 2015-25, ELIMINATING THE AUTOMATIC ANNUAL FEE. ADIUSTMENTTOTHE CITY'S J. CITY OF BAINBRIDGE ISLAND ANDI BAINBRIDGE ISLAND METROPOLITAN PARKS. AND: RECREATION K. RESOLUTION NO.2015-17, DECLARING THE CITY'S INTENT TO. ASSUME THE TRANSPORTATION BENEFIT DISTRICT/ AND SETTING. A PUBLIC HEARING FOR OCTOBER 27, 2015 ONTHE: SAME, AB 15-184 A. DISCUSS PETITION THRESHOLD! FOR ELECTRIC UTILITY BALLOT. PROPOSITION, AB 15-183 B. PRITCHARD PARK OFF-LEASH DOG REGULATIONS, AB 15-043 - COUNCILMEMBERTOLLEFSON A. UTILITY ADVISORY COMMITTEE NOTES, SEPTEMBER 14,2015- -COUNCILMEMBER TOLLEFSON B. ETHICS BOARD NOTES, SEPTEMBER 21,2015-I DEPUTY MAYOR SCOTT C. UTILITY ADVISORY COMMITTEE NOTES, SEPTEMBER: 28, 2015-UACN MEMBER LEACH  CHAPTER 13.24, AB 15-151  WATER UTILITY RATES FOR 2016, AB 15-177 SEWER UTILITY RATES FOR: 2016, AB 15-178  DISTRICT SERVICE SHARING INTERLOCAL AGREEMENT, AB 15-187  6. COUNCIL DISCUSSION 7. COMMITTEE REPORTS  8. REVIEW UPCOMING COUNCIL MEETING AGENDAS A. UPCOMING MEETING CALENDAR 9. FOR' THE GOOD OF THE ORDER 10. ADIJOURNMENT 1. EXECUTIVE SESSION 6:001 PM  REVIEW PERFORMANCE OF AN EMPLOYEE (RCW 42.30.110()); POTENTIAL LITIGATION (RCW Deputy Mayor Scott adjourned the meeting to an executive session at 6:00 p.m. with Councilmembers Blair, Blossom, Bonkowski, Roth, Tollefson, Townsend and City Attorney Marshall to discuss the Review Performance ofan Employee, (RCW 42.30.110.1(8)), Potential Litigation, RCW 42.30.110(1)0D) and Property Acquisition (RCW 42.30.110(1)b). The recording system was turned off and a notice was posted on the door oft the Council Chamber. The executive session adjourned at 7:001 p.m. No action was taken. Deputy Mayor Scott called the meeting to order at' 7:03 p.m. with Councilmembers Blair, Blossom, Bonkowski, Roth, Tollefson and Townsend present. Reçords Management Coordinator Jahraus monitored the recording of the meeting and prepared the minutes. 3. ACCEPTANCE OR MODIFICATION OF AGENDA/CONFLICT OF INTEREST DISCLOSURE 7:04PM  42.30.110(1)0); PROPERTY ACQUISITION (RCW 42.30.110(1)(b)  2. CALLTOORDER/ROLL CALL7:03 PM  7:04PM  MOTION:. Imove we accept the agenda as modified. BLAIR/BONKOWSK: The motion carried 7-0.    REGULAR: STUDY SESSION TUESDAY, OCTOBER 6,2 2015  4. CITY MANAGER'S REPORT 7:04 PM City Manager Schulze's report included information on:  The International City Manager's Association Convention took place last week in Seattle with 38 countries represented including a group of Dutch city managers who paid a visit to Bainbridge. There was very positive feedback. Gorgeous Preliminary report from National Research Center survey; good numbers coming in after one week. A. ROCKAWAY BEACH OUTFALLSTUDY, PROFESSIONAL: SERVICES AGREEMENT, ABI 15-181 Public Works Director Loveless presented to Council. The Rockaway Beach Roadway Outfall Study consists of preliminary engineering, permitting, design, and construction support services fort thei repair and/or replacement of the roadway drainage conveyance located in the vicinity of5342 Rockaway Beach Drive. The existing conveyance consists of catch basins and deteriorated çoncrete pipe carrying flow to an outfall at thel beach. The City solicited statements of qualifications from the Consultant Roster and Parametrix, Inc. was selected as the most qualified consultant to design the project. The agreement and  weather!  New sound system in chamber. Kudos to Steve Miller, IT Director.  5, STAFF INTENSIVE 7:071 PM  scope of work are included in the agenda packet; iti is a 90% design, and ready to go to construction.  7:10PM  MOTION: I move that the City Council forward the Rockaway Beach Roadway Outfall Study Professional Services. Agreement with Parametrix, Inc. in the amount of849,307.93 to the  October. 27, 2015 City Council consent agenda. BLAIRBONKOWSKE The motion carried 7-0.  A. DEEP CULVERT ASSESSMENT STUDY, PROFESSIONAL SERVICES AGREEMENT, AB 15-1827 7:11 PM Public Works Director Loveless presented to Council. Thel Deep Culvert Assessment study is to evaluate the condition ofands study options such as repair and/or replacement alternatives for culverts in deep fill sections Island-wide. Many culverts in deep fill sections were originally constructed in the 1960's and 1970's using concrete pipe or corrugated metal pipe. These culverts are now coming to the end oftheir service life and may be ini need oft repairs and/or replacement. The City has identified thirteen (13) culverts  that are recommended for evaluation.  7:14PM  MOTION: Imove that the City Council forward the Deep Culvert Assessment Study Professional Services Agreement with Reid Middleton, Inc. in the amount of875,000 to the October. 27, 2015  City Council consent agenda. BONAOHSA/BLAR: The motion carried 7-0.  B. ORDINANCE NO.2 2015-20, UPDATETO: STORM AND SURFACE WATER MANAGEMENT CODE, BIMC, Public Works Director Loveless presented to Council. The proposed amendments to the Storm and Surface Waters Chapter oft the Bainbridge Island Municipal Code are intended to codify the changes to the utility as previously proposed by the Utility Advisory Robert Dashiell, Tolo Road, stated thej proposed amendment has lots of good things but there are flaws that need further study. The  CHAPTER 13.24, AB 15-151 7:14 PM  Committee (UAC) and accepted by the City Council at their. June 9, 2015 City Council meeting.  Public Comment 7:32PM  UACI has not reviewed this ordinance. Its should be referred tot them.  MOTION:. I move that the City Council forward Ordinance No. 2015-20J for second reading  at the October 27, 2015 City Council meeting. BLAIRBONKOWSKE The motion carried 7-0.  C. ORDINANCE NO. 2015-32, 2016-2021 CAPITAL FACILITIES PLAN, AB 15-1857:321 PM  Public Works Director Loveless presented to Council. The City of Bainbridge 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 Robert Dashiell, Tolo Road, had questions about timing and input ofthe CIP. Thought the document was done hurriedly. Public Works Director Loveless responded tol Mr. Dashiell's comment pointing out that the CIP is not a cash flow document, iti isa  information on grants, and new projects as indicated by current information.  Public Comment  document that shows when funds need tol be available.  2    REGULAR STUDY SESSION TUESDAY, OCTOBER 6,2015  7:44 PM  MOTION: Imove that the City Council forward Ordinance No. 2015-32 Updating the Capital Facilities Plani to: second reading and consideration of approval at the Council meeting on  October. 27, 2015.  TOLLEFSON/BONKOWSKI: The motion carried 7-0.  D. ORDINANCE NO. 2015-33, MID-BIENNIAL BUDGET MODIFICATIONS, AB 15-186 7:441 PM Finance Director Schroer presented to Council. The City of Bainbridge Island adopted Ordinance No. 2008-11 providing fora biennial budget process for years after 2010, and prepared biennial budgets fort the 2011-2012,2 2013-2014 and 2015-2016 biennia. In November of2014, the City of Bainbridge Island adopted al biennial budget for 2015 and 2016. In July of2013, the City adopted Ordinance 2013-23, which provides for a mid-biennial review oft the budget and for modifications, as approved by the Council. The City Manager has proposed a set of adjustments for 2016 to the City Council, and several Council meetings have included The City of Bainbridge Island prepares al biennial budget, which provides ai financial plan for two years. The Council approveda budget for 2016 late in the fall of2014 to which City administration is now proposing al limited number of adjustments for consideration. There ist time set aside on this agenda for discussion and questions. Additional time will be set aside at future The proposed budget adjustments are explained in more detail in the documents included in the agenda packet. The mid-biennial adjustments do not propose significant changes to the programs and services currently offered by the City. Randal Samstag, former UAC member. Hei is delighted to see thei island wide utility study in the budget. Robert Dashiell, Tolo Road, would like to see Council wait on doing an island wide utility study.  budget discussions.  meetings for Council discussion, community input and aj public hearing.  Public Comment  8:10PM  MOTION: Imove that the City Council. schedule a public hearing on Ordinance No. 2015-33, 2016 Mid-Biennial Budget Modifications accepting the $250,000 addition for an Island Wide Utility Study for October. 27, 2015 andj forward Ordinance. No. 2015-33 as modified to the  November 3, 2015 Council. meeting.  TOLENSONBONAONSAE The motion carried 6-1 (Blair).  E. ORDINANCE NO. 2015-35, DECLARATION OF SUBSTANTIAL, NEED TO INCREASE THE REGULAR PROPERTY TAXI LEVY RATE IN EXCESS OF THE IMPLICIT PRICE DEFLATOR FOR COLLECTION Finance Director Schroer presented to Council. Part oft the process for approving the 2016 Budget includes setting the 2015 Property Tax Levy for collection in 2016. Setting the property tax levy is an annual part oft the budget process. As provided by Initiative 747, passed by Washington voters in 2001, ifthe value of the implicit price deflator (IPD) (a measure ofinflation) is 1% or more, property tax levies can increase by a maximum of 1%. Ifthe IPD is less than 1%, jurisdictions which wish to raise their property tax levies by The 2016 Adopted Budget and the modifications now proposed to Councili includeal 1.0% increasei int the dollar amount being collected (plus charges on new construction). In order to levy this dollar amount, the City must declare substantial need. Ifthe City does not make this declaration, we will not be able to levy this difference in the future, which means that ongoing revenue levels willl be lower.  IN:2016, AB 15-188 8:111 PM  the maximum 1% must pass a resolution establishing substantial need. This year, the IPD is 0.251%.  8:16F PM  MOTION: I move that the City Council schedule a public hearing for October 27, 2015 and forward Ordinance No. 2015-35 to the November 3, 2015 City Council meeting.  BLAIRTOLLEFSONA The motion carried7-0.  F. ORDINANCE NO. 2015-27, PROPERTY TAXI LEVY FOR COLLECTION IN 2016, AB 15-180 8:16P PM Finance Director Schroer presented to Council. Part oft thej process for approving the 2016 Budget includes setting the Property Tax Levy for collection in 2016. The budget proposes an increase in the dollar amount being collected (plus charges on new construction) in the amount allowed by Initiative 747 as calculated by the Kitsap County assessor. The dollar increase for the Property Tax is $51,609, the new construction amount is $57,016 and the tax refund amount is $22,144 bringing the total levyt to $7,123,222 on total assessed valuation of $6,220,108,256. Additional detail is provided on the attached sheet, which is provided by Kitsap County to explain the calculations. In addition, Ordinance No. 2015-27 willl levy $607,7001 toj pay the 2016 debts service cost  ofthe Open Space General Obligation Bonds. The levy is equal to the amount oft the debt service.  3    REGULAR STUDY SESSION TUESDAY, OCTOBER 6,2015  8:18PM  MOTION: I move that the City Council. schedule a public hearing on Ordinance No. 2015-27J for October 27, 2015 and forward Ordinance No. 2015-27 to the November 3, 2015 City Council  meeting.  TOLLPESONBONAOHSAR The motion carried 7-0.  G. ORDINANCE NO.2015-24, ELIMINATING THE AUTOMATIC ANNUAL FEE ADJUSTMENT TO' THE CITY'S Finance Director Schroer presented to Council. Section 13.16.060 oft thel Bainbridge Island Municipal Code provides for an annual automatic rate increase of equal to the annual percentage increase int the United States Consumer Price Index, All Urban Consumers (CPI-U) for November oft the preçeding year unless City Council determines that by December 31#ofanys year that adjustment shall  WATER UTILITY RATES FOR: 2016, AB 15-177 8:191 PM  be another amount or shall not occur for the next year.  8:22PM  MOTION: I move that the City Council forward Ordinance No. 2015-24, eliminating the automatic annual, fee adjustment to water utility rates for 2016, to secondreading on October 27,  2015.  BLAIRBONROWSAE The motion carried 7-0.  H. ORDINANCE NO.2015-25, ELIMINATING THE AUTOMATIC ANNUAL FEE ADJUSTMENTTO THE CITY'S Section 13.16.060 oft the Bainbridge Island Municipal Code provides for an annual rate increase equal to the annual percentage increase in the United States Consumer Price Index, All Urban Consumers (CPI-U) for November oft the preceding year plus two percent unless City Council determines that by December 31s'ofa any: year that adjustment shall be another amount or shall not occur  SEWER UTILITY RATES FOR: 2016, AB 15-178 8:22 PM  for the next year. 8:23PM  MOTION: Imove that the City Councilj forward Ordinance No. 2015-25 eliminating the automatic annual) fee adjustment oft the City's Sewer Utility Rates) for 20/6losecondreading: on October 27,  2015.  BLAIRBONKOWKSE: The motion carried 7-0.  CITY OF BAINBRIDGE ISLAND AND BAINBRIDGE ISLAND METROPOLITAN PARKS ANDI RECREATION The Interlocal Agreement (ILA) was drafted ini response to ar recommendation from the Intergovernmental Working Group (IGWG) that the City ofBainbridge Island and the Bainbridge Island Metropolitan Parks and Recreation District streamline the services the two entities provide to their respective jurisdictions by performing certain operations and maintenance services for one another. For example, the District does not have a roadside mower, and accordingly the District desires the City to perform roadside mowing serviçes for the District. The District provides trail maintenance andl landscaping services, which the City would like thel District to perform for the City. The attached ILA was structured with the intention that the parties willi identify and enumerate on Exhibit A of the ILA those services each entity would like the other to perform. Each service will contain an associated! hourly rate and the parties willi issue quarterly statements to each other to account for andi track the expenses incurred. At the end oft the year, the parties will true-up, meaning that if one party has incurred fewer costs than the other, the party incurring more costs will submit payment to the other for the difference. Importantly, the City's insurer, WCIA, does not authorize the use oft the City's equipment, tools, and machinery by non-City staff. Accordingly, all work performed for the District using City equipment willl be performed by City staff.  DISTRICT: SERVICE SHARING INTERLOCAL AGREEMENT, AB 15-1878 8:23PM  8:28PM  MOTION: I move the City Council. forward to Interlocal Agreement to the October 27, 2015  Consent Agenda.  BLAIRTOLLEFSONA The motion carried 7-0.  J. RESOLUTION NO. 2015-17, DECLARING THE CITY'S INTENT' TO ASSUME THE TRANSPORTATION BENEFIT DISTRICT AND SETTING A PUBLIC! HEARING FOR OCTOBER 27,20150N THE SAME, AB 15- Effective July 152015, a municipality may assume the rights, powers, functions, and obligations ofat transportation benefit district (TBD) when the boundaries oft the TBD: are the same as thel boundaries oft the municipality. In order tot take this action, the City Council must pass ai resolution declaring its intent to dissolve the transportation benefit district and must schedule a public hearing to receive public input on thes same. Should the City Council wish to dissolve the TBD: following the public hearing, the Council would pass an ordinance at as subsequent meeting to repeal the establishment ofthe Bainbridge Island' Transportation Benefit District.  184 8:28 PM  8:32PM  MOTION: Imove the City Council pass Resolution. No. 2015-17 declaring the City's intention to assume the Bainbridge. Island Transportation. Benefit District and setting a public hearing regarding the samej for October 27, 2015 with an amendment to Section 1. stating the date of  October 27,2015.  BLOSSONEONAOMSAA The motion carried7-0.  4    REGULAR: STUDY SESSION TUESDAY, OCTOBER 6, 2015  6. COUNCIL DISCUSSION 8:321 PM  A. DISCUSS PETITION THRESHOLD FOR ELECTRIC UTILITY BALLOT PROPOSITION, AB 15-183 City Manager Schulze addressed Council and explained that members ofI Island Power, al local organization promoting the creation of ac City owned electric utility have contacted members oft the City Council and City management regarding the process of placing an initiative on a future ballot to authorize the City to explore the feasibility of establishing an electric utility. The City of Bainbridge Island does not have an initiative or referendum process sO, only the City Council can place aj proposition on al ballot for voters to The RCW does require voter approval for the City to acquire an electric utility. A simple majority approval is required. The process does require an eventual feasibility analysis, cost estimates and projected rate analysis. This information would be required prior to  consider.  the final ballot proposition seeking voter authorization to acquire and establish an electric utility. Elaine Davis, Winslow, read al letter into the record. (Hard copies distributed to Council.)  Public Comment  Jane Lindley, Torvanger Road, is co-chair ofl Island Power. Thanked council for their time. They have over 1000 signatures to date Jaco Tenl hove, Knechtel and Madison. Stated PSE is locked into the coal strip generating plant in eastern Montana. Ted. Jones, Nelson Hilll Lane. Recited the benefits ofani island power utility. Urges council to follow. Jefferson County and Port  and urged Council toj put an initiative on the ballot.  Townsend's lead.  Tom Grinden, Darden Lane, supports public power and urged Council to seek public approval.  David Mitchell, Mobile Home Park. Technology for a smart grid closely resembles that ofa municipal broad band network and Bryan McConaughy, Senior Local Government Affairs Representative for PSE, stated Kitsap County is home to 90 PSE employees; Eric Moe, Blakely area. Went on a study tour in Denmark and Sweden tol look at energy infrastructure. Provided the clerk witha a  would make for great synergy. six live on Bainbridge. pamphlet.  Barry Peters, Vineyard Lane. Spoke about process; need to determine feasibility.  Lara Hansen, Lovell Avenue. Reflected on the process and the government opportunity right now. Andy Wappler, Vice-president of Corporate Affairs, PSE. Spoke about their track record on Bainbridge. Len Korslund, Beach Crest Drive, retired Seattle City Light. There's lot more to running a utility than going green; need to considera fleet, where will they live, commute and are dispatched from. We should not be voting on a feasibility study tonight. Ben Avery, Evergreen Avenue, 4th generation Islander. Spoke in favor of doing a study on the issues raised by Mr. Korslund. Open Phil Rockefeller, Tolol Road, suggested parameters to look at: examine reliability issues, cost and emissions profile. Next steps: Council provided direction to City Manager Schulze asking him to put together a plan that will provide the Council and community with comprehensive information tol help make a decision on electric power service on Bainbridge Island. B. - PRITCHARD PARK OFF-LEASH DOG REGULATIONS, AB 15-043-C COUNCILMEMBERTOLLEFSON This Resolution approved the establishment of off-leash hours for dogs at Pritchard Park on at temporary basis, subject to approval of BIMPRD. The intent of Council at the time was that the off-leash hours would last only a couple of months, at most, and would not Discussions with BIMPRD didi not result in agreement to an off-leash arrangement, and the Park is now: ready for transfer in the near  up for public discourse and vote.  9:44 PM  Interfere with transfer of Pritchard Park to BIMPRD free and clear of any off-leash regulations.  future,  5    REGULAR STUDY SESSION TUESDAY, OCTOBER 6, 2015  Itisp prudent to rescind the referenced Resolution sO that there is no ambiguity concerning the legality of off-leash dogs in Pritchard  Park at thet time the transfer ultimately takes place.  9:48 PM  MOTION:Imove. the City Council rescind Resolution 2015-08. TOLLEFSOMBLAIR: The motion carried 6-1 (Blossom).  7. COMMITTEE REPORTS 9:49 PM  A. UTILITY ADVISORY COMMITTEE NOTES, SEPTEMBER 14, 2015-COUNCILMEMBERTOLLEPON B. ETHICS BOARD NOTES, SEPTEMBER: 21, 2015-1 DEPUTY MAYOR: SCOTT : UTILITY ADVISORY COMMITTEE NOTES, SEPTEMBER 28, 2015-1 UACI MEMBER LEACH  8. REVIEW UPCOMING COUNCIL MEETING AGENDAS 9:56PM A. UPCOMING MEETING CALENDAR Ordinance No. 2015-26, SSWM Rates, Ist Reading (Info.)  October 27  Resolution No. 2015-16, Ferncliff Village Phase III Final Subdivision Amendment Closed Record Meeting (Consider. Action)  Assuming the Transportation Benefit District, Public Hearing (Consider. Action) Ordinance No. 2015-32,2016-2021 Capital Facilities Plan, 2nd Reading (Consider Action) Ordinance No. 2015-35, Declaration of Substantial Need, Public Hearing (Consider Action) Ordinance No. 2015-27, Property Taxes Levied in 2016, Public Hearing (Consider Action) Ordinance No. 2015-24, Water Rates, 2nd Reading (Consider Action) Ordinance No. 2015-25, Sewer Rates, 2nd Reading (Consider Action) Ordinance No. 2015-33, Mid-Biennial Modifications, Public Hearing; Consider scheduling approval 11/17) Wing Point Way Non-Motorized Improvement Construction Award (Pending State Approval) City Manager Contract Renewal (Consider Action) Ordinance 2015-20, Update to SSWM Code BIMC 13.24, 2nd Reading (Consider Action) Rockaway Beach Outfall Study Professional Services Agreement (Consider Action) Deep Culvert Assessment Study Professional Services Agreement (Consider Action) Equipment Sharing Interlocal Agreement w/BIMPRD (Consider Action) Sewer Pre-Design Study PSA (Consider Action) 9. FORTHE GOOD OF THE ORDER 10:03 PM speaks to general ordinances relating to nuisances of all kinds.  Councilmember Townsend offered comment on the noise ordinance. Ifv we are to modify the ordinance, the police department has assured us that 911 reports are the best way to collect the data. Councilmember Tollefson added that the issue goes beyond noise; it Councilmember Blossom asked where the island wide utility study originated; City Manager Schulze provided explanation.  10. ADJOURNMENT 10:10E PM  Deputy Mayor Scott adjourned the meeting at 10:10 p.m.  Luebliv Anne! S. Blair, Mayor  Kelly. Jahraus,Records Gs  Qher  6