REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  IUESDAY,AUCUST20G  ITEMS DISCUSSED  1. CALLTOORDER/ROLL CALL/PLEDGE OF ALLEGIANCE 3. CITYI MANAGER'S REPORT [MOVEDI UP] 4. PUBLIC COMMENT [MOVED! DOWN]  2. ACCEPTANCE ORI MODIFICATION OF THE AGENDA/CONFLICT OF INTEREST DISCLOSURE  5. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ONI EACH: ITEM) 6. NEW: BUSINESS (PUBLIC COMMENT INVITED ONI EACHI ITEM)  A. REQUEST FORI PROPOSALS. FOR 2017LODGING TAX. ADVISORY COMMITTEE PROJECTS, AB 16-111- B. ROCKAWAY BEACH OUTFALL IMPROVEMENTS CONSTRUCTION AWARD, AB 15-181 -) PUBLICWORKS A. ORDINANCE NO. 2016-11,1 HISTORIC PRESERVATION PROGRAM, AB 16-113 - PLANNING B. RESOLUTION: NO.2016-20, ADOPTING A CONTINUING MUNICIPAL SECURITIES DISCLOSURE POLICY, C. RESOLUTION: NO.2016-18, SURPLOS REAL: PROPERTY POLICY UPDATE, AB 16-115-FINANCE D. RESOLUTION: NO.2016-19, FINANCIAL POLICIES UPDATE, AB 16-116- - FINANCE E. CITIZEN. ADVISORY COMMITTEE APPOINTMENTS, AB 16-119- - MAYOR TOLLEFSON F. WINGI POINT WAYI NON-MOTORIZED IMPROVEMENIS PROJECT UPDATE, AB 13-086- - PUBLIC WORKS G. PUBLIC SAFETY FACILITY DESIGN PROFESSIONAL SERVICES AGREEMENT, AB 14-008 - PUBLIC WORKS H. ORDINANCE NO.2016-16, RELATING TOTRANPORTATION IMPACT. FEE AMENDMENTS; AMENDING I. GROUNDWATER ASSESSMENT PROFESSIONAL: SERVICES AGREEMENT AMENDMENT NO. 1,AB 15-038- J. KITSAP PUBLICUTILITY DISTRICT (KPUD) MEMORANDUM OF UNDERSTANDING FOR GROUNDWATER  EXECUTIVE  AB 16-114-FINANCE  BAINBRIDGE ISLAND MUNICIPAL CODE 15.30, AB 15-048 - PUBLIC WORKS  PUBLIC WORKS  ASSSESSMENT, AB 15-038-PUBLIC WORKS  K. BUILDING MAINTENANCE SERVICES CONSTRACT, AB 16-117-1 PUBLIC WORKS L. ARTS AND. HUMANITIES BAINBRIDE CONTRACT, AB 16-118-E EXECUTIVE B. ACCOUNTS PAYABLE VOUCHER AND: PAYROLL APPROVAL - REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, JULY 26, 2016 D. REGULAR CITY COUNICL STUDY SESSION MINUTES, AUGUST2,2016  7. CONSENT AGENDA  A. CONSENT AGENDA COVER SHEET  E. RESOLUTIONI NO. 2016-17, SUPPORTING FEDERAL AND: STATELBGISLATION BANNING ASSAULT  WEAPONS, AB 60-COUNCIMEMBER SCOTT  8. COMMITTEE REPORTS  A. ETHICS BOARDI LIAISON NOTES, JULY 18, 2016- COUNCILMEMBER SCOTT B. DESIGN REVIEW: BOARD. LIAISON NOTES, JULY 18, 2016-C COUNCILMEMBER PELTIER  9. REVIEW UPCOMING COUNCIL MEETING AGENDAS  10. FOR THE GOOD OF THE ORDER 11. ADJOURNMENT  1. CALLTOORDER/ROLL CALL/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 Lassoffmonitored thei recording oft the meeting andj prepared the minutes. Everyone stood for thel Pledge of 2. ACCEPTANCE OR MODIFICATION OF THE. AGENDA/CONFLICT OF INTEREST DISCLOSURE 7:00F PM Item 6G, Public Safety Facility Design Professional Services Agreement, was removed from the agenda and willl be brought back  Allegiance.  toaf future meeting.  MOTION:. Approve the agenda as modified. TOMNSENDSCOTT: Motion carried? 7-0.  There were no conflicts ofi interest disclosed.    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES 3. CITY MANAGER'S REPORT [MOVED UP] 7:01E PM 4. PUBLIC COMMENT [MOVED DOWN] 7:02 PM,  TUESDAY, AUGUST9,2016 None was offered. None was offered.  5. UNFINISHED BUSINESS (PUBLIC COMMENT INVITED ONI EACH ITEM)  A. REQUEST FOR PROPOSALS FOR: 2017 LODGINGTAX. ADVISORY COMMITTEE PROJECIS, AB The City issues an annual Request for Proposals (RFP) to consider projects to receive LTAC: funding. The RFP includes information on the total available funds, eligibility, and scoring criteria. This funding framework: is used by the Lodging Tax Advisory Committee to develop ai recommendation. for funding that City. Council will consider. for approval. For 2017 projects, staff estimates funding of $200,000 willl be available to distribute toj project recipients. For 2016, the Council approved project awards of$160,000. Thei increase in available funding is due tol higher revenues from lodging taxi received by the City in 2015 and forecasts for higher revenue in 2016 as well. A summary oft the estimated available funds is provided, along with a  I6II-EXECUTIVE7.O2 PM Deputy City Manager Smith introduced the item.  draft oft the proposed RFP. Other key elements of thel RFP include: 1. Minimum award amount remains $2,000.  2. Maximum award amount remains 50% oftotal available funding, or $100,000.  3. As before, the committee will only consider partial funding for proposals that identify alternative funding levels. If alternative levels of funding are not: identified in the proposal, only thej proposed funding amount (or no funding) willl be The City expects to issue thel RFP ine early September, and thel LTAC: members will review proposals in November. The goal is to  recommended by the committee.  provide a funding recommendation to the City Council before the end of the calendar year.  Noj public comment was offered.  MOTION: Imove the City Council approve the 2016 Lodging Tax Award Committee  Request for Proposals.  TOMNSEND/ROTH: Motion carried7-0  B. ROCKAWAY BEACH OUTFALL IMPROVEMENTS CONSTRUCTION AWARD, AB 15-181 -PUBLIC Public Works Director Loveless introduced thei item. This stormwater drainage improvement project includes installation ofp pipe, catch basin, and piping work within an easement and outfall at the beach bulkhead. Work within the easement will require removal and relocation ofai retaining wall and storage shed and replacement ofl landscape materials. Bids were solicited through the local newspapers and thel bid opening was held on August 3, 2016. The apparent low bidder is Sealevel! Bulkhead Builders ini the bid amount of$ $178,420.18. The engineer's estimate is $150,0001 to $165,000. Staff] has reviewed the bid documentation: and contractor's qualifications and recommends that the City Council award this contract to Sealevel Bulkhead Builders in the amount  WORKS 7:05 PM  of$178,420.18.  MOTION: Imove that the City Council approve the Rockaway. Beach Outfall Improvements construction awardi to. Sealevel Bulkhead. Builders in the bid amount for $178,420.18 and budget amendment of855,000 from the Annual Stormwater. Preservation Program, thereby  increasing the spending authority for this project. TOWNSENDPELTIER: Motion carried7-0.  . NEW BUSINESS (PUBLIC COMMENT INVITED ONI EACHI ITEM) Senior Planner Beckmann Wright introduced the proposed ordinance.  A. ORDINANCE NO. 2016-11,HISTORIC PRESERVATION PROGRAM, AB 16-113-PLANNING 7:09PM Thej proposed ordinance proposes two new honorary classes ofhistoric properties: Historic Island Farms & Heritage Properties. The Historic Preservation Commission (HPC) is proposing these classes to raise public awareness and recognition of our historic, island  properties.  2    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, AUGUST9,2016  Ina addition, the ordinance creates a new class of 'register eligible' properties: those eligible for but notl listed on our local register. Over the last few months, the HPCI has changed this class of property and added an intent section to thel Bainbridge Island Municipal Code to explain the purpose ofthis designation andt thel HPC's purpose ini reviewingi permits with this designation. In summary, thel HPC is seeking tob be a constructive partner with register eligible property owners by providing suggestions on making exterior improvements that would not preclude the current or future property owner from adding aj property tot the local register. Further, thel HPCi is proposing to codify mitigation for the demolition of these structures so1 that the structures significance For each new class, there is aj process fori identifying and approving these properties, reviewing changes/alteration and demolitions as well as appealing decisions on these actions. As proposed, thel Planning Commission, Planning Director, City Council and On.A April 28, 2016, the Planning Commission held as study session on Ordinance No. 2016-11. The Commission had some questions, some wording suggestions and unanimously recommended that staff forward the amendments to Title 2 and 18 tol Public Hearing. The first Public Hearing was held on June 23, 2016.1 Prior to that meeting, thel Planning Commission and staffreceived comment letters from various citizens. At that meeting, concerns were voiced by many of those commenters. The Planning Commission Following that Planning Commission meeting, HPC co-chairs and staff carefully read through the comment letters and weighed the conçerns voiced against the Comprehensive Plan and the goals oft the proposed ordinance. Additionally, the HPC continued toi meet Thel HPC responded to many of the concerns by modifying and clarifying their proposal. On July 28, 2016, the Planning Commission: made a unanimous recommendation to: forward thej proposed ordinance tot the City Council with minor changes. Historic Preservation Committee Williams introduced the major provisions in the proposed ordinance: zoning relief, heritage property provision and public signage program for heritage properties, registered properties and historic farms and recognition of historic island assets. He also explained that registered eligible property provisions would be for properties not on the local register There were brief comments offered and questions raised regarding the criteria used ini identifying properties for eligibility on the local register list, mitigation measures, how would aj property owner dispute beingi put on thei register eligible list, timing with respect to offering changes before the Planning Commission concludes their work on the draft Cultural Element ofthe Comprehensive Plan, whether aj property is registered as opposed to being register qualified can be al basis for denying demolition of thej property, whether therei is anything which outlines what "mitigation" is permitted or can bei required and potential consequences or burdens onj property owners with respect tol having ai register eligible category in addition to those on the register. Nina Jackson, 2191 Madison Avenue South, commented as an historic property owner. She hoped to get her property not only on the register but also seeks zoning relief in such a way that would allow someone to inhabit the building as an old home. There was consensus to support moving forward with the public hearing and then see whether City Council would like toj proceed or  can continue even ifiti is demolished.  Hearing Examiner will each take on new duties when reviewing these properties.  Planning Commission Review.  decided to hold open thel Hearing until thei next available date.  members of the public, including a member oft thel Planning Commission.  which would be eligible for the program.  Public Comment  take some more time discussing the issue.  MOTION: Imove the City Council to: schedule aj public hearing on this ordinance for August 23, 2016.  SCOTT/PELTIER: Motion carried7-0.  Deputy Mayor Medina requested the ordinance be amended to reflect the change fromi thel Public Water Access Committee to the B. RESOLUTION NO.2 2016-20, ADOPTING A CONTINUING MUNICIPALSECURTIES DISCLOSURE Finance Director Schroer introduced the resolution which would formalize actions that the City already takes but is part of the  Marine. Access Committee.  POLICY, 16-114-F FINANCE 7:39) PM  settlement which we signed in June. Noj public comment was offered.  3    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, AUGUST9,2016  MOTION: Imove that the City Council, forward Resolution. No. 2016-201 to the August. 23, 2016  consent agenda.  ROTH/SCOTT: Motion carried 7-0.  .F RESOLUTION NO. 2016-18, SURPLUS REAL PROPERTY POLICY UPDATE, AB 16-115-1 FINANCE 7:401 PM Deputy City Manager Smith explained as part ofan ongoing review to the City's financial andi management policies, staffis  recommending an update tot the Surplus Real Property policy. The updates propose thei following primary changes:  Eliminate realj property review committee as an ongoing committee.  Change annual reporting date from April 30 to mid-year toj provide reporting consistency  Establishes processes fort the sale ofreal property that reflect the current practice ofthe City, and allow for sale procedures  appropriate for differing types ofp property:  This update is intended to provide for consistent and timely reporting, while also providing for annual review and a common Councilmember Scott wanted tol know the background behind the recommendation to remove assigning ai fund to which the proceeds oft the sale would go. Deputy City Manager Smith explained thel language was taken out was because it's clearly  understanding of sale procedures.  articulated in our financial policies and the RCW. Noj public comment was offered.  MOTION: Imove that the City Council forward Resolution. No. 2016-18 to the August. 23, 2016  consent agenda. SCOTT/MEDINA  Councilmember Peltier share his hesitation in eliminating the surplus property advisory committee. Mayor Tollefson indicated under the current code, it is not a Council committee but rather a committee consisting oft the City Manager, Public Works Director, Deputy Mayor Medina wondered how many properties staff was referring to. Deputy City Manager Smith indicated the City started with two dozen or so properties in 2007-2008, however two thirds ofthose have since moved through the process with al large  City Attorney and Finance Director.  number ofthem being transferred to thej parks district.  No public comment was offered.  Motion carried 6-0. Councilmember Peltier abstained.  D. RESOLUTION NO. 2016-19, FINANCIAL POLICIES UPDATE, AB 16-116- - FINANCE 7:501 PM Finance Director Schroer indicated this item actually takes thet two policies just discussed and adds them to the finance policies. She explained early ini the year staff worked to consolidate our policies into one resolution so int the spirit of keeping it up-to-date this document brings in two new: sections into the existing resolution and adds, by reference, thet two policies City Council just Councilmember Peltier recalled an earlier discussion about how the City pays for water-related studies andi monitoring out of the General Fund and wondered ifi it was included in these policies. Finance Director Schroer indicated that decision was captured in  discussed.  the cost allocation manual which willl be published and posted in conjunction with thel budget.  No public comment was offered.  MOTION: Imove the City Councilj forward. Resolution. No. 2016-19t0 the August 23, 2016  consent agenda.  MEDINA/ROTH: Motion carried 7-0.  4    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUESDAY, AUGUST9,2016  E. CITIZEN ADVISORY COMMITTEE APPOINTMENTS, AB 16-119-1 MAYOR' TOLLEFSON752PM  Mayor Tollefson introduced thei item.  MOTION: Imove the City Council confirm the appointments of Susan Buckles, Kathleen Cronin, Asaph Glosser, Ariel Shultz, Jackie Siler, Stephen Walker and Kaycie Wood to the Human Services Funding Advisory Committee to a term ending upon completion oftheir funding recommendations MOTION: Imove the City Council confirm the appointments ofSusie Burdick, Lori Quick-Mejia, Julie Schulte and Patricia Nash to the Lodging Tax Advisory Committee to a term ending upon  SCOTT/ROTH: Motion carried7-0.  completion of their funding recommendations. SCOTT/ROTH: Motion carried 7-0.  F. WING POINT WAYI NON-MOTORIZED MPROVEMENIS PROJECT UPDATE, AB 13-086-1 PUBLIC The Wing Point Way Non-Motorized Improvements project is substantially complete with only some punch list and landscaping work remaining. It has been open for traffic since just before July 4th ofthis year. Thej project was funded from a combination of the A number of changes to the project work have been required to accomplish the work as designed and as adjusted for differing site conditions during construction. Work change directives were necessary for this project to avoid costly delays due to design changes, unforeseen conditions, and weather related issues. As we move toward contract close-out and resolution of changes orders, itl has been recognized that change order costsl have exceeded the City Manager authority of 10% of contract total. In accordance with the recently adopted Procurement Policy, the final change order willl be "presented to the City Council as soon) practicable" on ai future  WORKS 7:55 PM  Public Works! Director Loveless offered al brief] PowerPoint presentation on1 the work completed to date.  following sources: Federal Grant, Streets Fund, Sewer Fund, and' Water Fund.  agenda. No action was needed.  G-PUBLIESAFET-FACILIPYDESIGN-PROFESSIONALSERVICESAGREEMENPABLIG  WORKS  This item was removed from the agenda and willl be brought back to ai future meeting.  H. ORDINANCE NO. 2016-16, RELATING TOTRANSPORTATION IMPACT FEE. AMENDMENTS; AMENDING The City Council adopted Ordinance No. 2015-07 establishing a' Transportation Impact Fee (TIF) Program on September 8, 2015. With the adoption of Engrossed Senate Bill (ESB) 5923 in April 2015, thel Legislature amended the Revised Code of Washington (RCW) 82.02.050 to mandate that cities collecting impact fees, adopt and maintain a deferral program. ESB: 5923 sets forth specific requirements for the deferral program while also allowing cities certain discretion, including the time for deferral andt the collection of an administrative fee. ESB: 5923 requires implementation ofa TIF deferral program by September 1,2016. Ordinance No. 2016-16 amends Chapter 15.30, Transportation Impacts Fees, to the Bainbridge Island Municipal Code and adds a Deferral Program for single family detached and attached residential construction. Other small administrative changes are also Councilmember Blossom wondered why A.2 (alternation of non-residential structures) is stricken out. Public Works Director indicated it's confusing and gives the impression that tenant improvements or change of use does not kick an impact fee.  BAINBRIDGE ISLAND MUNICIPAL CODE 15.30, AB 15-048 - PUBLIC WORKS 8:05PM  Public Works Director) Loveless introduced the ordinance.  included to clarify the intent ofthe existing code.  No public comment was offered.  MOTION: Imove that the City Council forward Ordinance. No. 2016-16 to the August 23, 2016  consent agenda.  PELTIERMEDINA: Motion carried 7-0.  5    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUSDAY,AUCUST206  GROUNDWATER ASSESSMENT PROFESSIONAL SERVICES AGREEMENT AMENDMENT NO.1 1, AB Public Works Director Loveless introduced the item. The Groundwater Assessment project provides ani in-depth hydrogeological assessment ofl Island-wide groundwater monitoring and utilizes the model to test land use and resource management: modifications ins support of updates tot the City's Utility Management and Comprehensive Plans. Ani increase to this not-to-exceed value of the Agreement is required to complete the third and final model run to test the feasibility and utility of moving summertime production from the Fletcher Bay Aquifer to the Sea Level Aquifer to offset high demand production impacts to the deep aquifer. Due to mutual interest inj production management of these aquifers, the Kitsap Public Utility District and the City will coordinate this effort with equitable cost-sharing via Memorandum oft Understanding being brought to City Council concurrent with this The City Council approved al Professional Services Agreement with Aspect Consulting in the amount of$55,200.00 at their March 10, 2015 City Council meeting. Amendment No. 1 increases the not-to-exceed value by $11,415.00. Deputy Mayor Medina indicated earlier in the year it was brought to City Counçil's attention that ifthe 2015 Fletcher Bay well data had been included in thel last Aspect study over that ten-year period, it would have signaled the early-warning level. He wondered inc doing this next part of the study, will Aspect be including 2015 data. Public Works Director Loveless indicated the study would not be really looking so much at thel Fletcher Bay level and early-warning but rather thei impacts to the sea level aquifer. Councilmember Peltier asked whether last year's summer drought could be included in that data. Senior Engineering Specialist Apfelbeck indicated although the modeling did noti include 2015 data, the modeling did look at a 15-to-20-year record which does Deputy Mayor Medina wondered ift the 2015 data S used in the 10-year rolling average for early-warning levels for Fletcher Bay would have set off the early-warning level. Senior Engineering Specialist Apfelbeck indicated ifthat was something City Council Mayor Tollefson asked whether the City Council could expect a report showing the results ofthat year-end assessment to which Deputy Mayor Medina wanted to confirm that this report will look at thej potential impact ofal bigger draw down on the sea-level Councilmember Peltier did not have any problem with the work that is] proposed however thought it was time to transition toa  15-038- - PUBLIC WORKS 8:111 PM  Amendment.  include drought years.  would like to have done they can gol back and do that.  Senior Engineering Specialist Apfelbeck indicated they would receive one.  acquirer on surrounding wells to which staffi indicated it would as it was an important part oft the analysis.  different consultant for future work. No public comment was offered.  MOTION: Imove the City Council forward. Amendment No. 1 to the Professional Services Agreement with. Aspect Consulting in the amount of811,415.00, for a total revised contract amount of $66,615.00,, for Groundwater Assessment. services to the August. 23, 2016 consent  agenda. SCOTT/ROTH  Deputy Mayor Medina felti it would be more efficient tol have Aspect finish the work and hoped that in thei future the City might  look at a different firm.  Motion carried 6-1 with Councilmember. Peltier voting against. GROUNDWATER ASSESSMENT, AB 15-038-1 PUBLIC WORKS 8:24PM  J.K KITSAP PUBLIC UTILITY: DISTRICT (KPUD) MEMORANDUM OF UNDERSTANDING FOR Public Works Director Loveless introduced the item. The City contracted with Aspect Consulting in 2015 for an in-depth hydrogeological assessment of groundwater monitoring island-wide and also included a Sea! Level and Fletcher Bay Aquifer  Production Test model run.  6    REGULAR CITY COUNCIL BUSINESS! MEETING MINUTES  TUESDAY,AUCUSTP.206  The City and Kitsap Public Utility District (KPUD) have a mutual interest inj production management oft these aquifers, as well as, maintaining a cooperative relationship toi manage Bainbridge Island groundwater resources for thel benefit oftheir respective customers and the citizens of Bainbridge Island. Therefore, the City and KPUD! have mutually agreed to jointly-fund the final model run via this Memorandum ofUnderstanding. Eachj party will contribute $11,415.00 for at total cost of $22,830.00. The City's expenditure is accomplished via an amendment to the original Aspect professional services agreement. That amendment is being  brought to Council conçurrent with this MOU. No public comment was offered,  MOTION: Imove that the City Council) forward the Kitsap Public Utility District Memorandum ofUnderstandmng forj joint City/KPUD funding ofgroundwater assessment, services toi the August 23, 2016 consent agenda. MEDINASCOTT: Motion carried7 7-0.  K. BUILDING MAINTENANCE SERVICES CONTRACT, AB 16-117-1 PUBLIC WORKS 8:261 PM Public Works Director Loveless introduced the item. This contract consists ofp preventative maintenance ofHVAC equipment, annual fire system inspection, security system maintenance, and confidence testing for city facilities. Bids were solicited through the local newspapers and the bid opening was held on Friday, July 15, 2016. Two bids were received with Air Management Solutions as the apparent low bidder in the amount of$18,218.15. City staff has reviewed thel bidi results and  recommends awarding this contract to Air Management Solutions.  Noj public comment was offered.  MOTION: Imove the City Council forward the Building Maintenance Services contract award with Air Management Solutions in the amount /91828/5ammalby.fom: 2016  through. 2019, to the August 23, 2016 consent agenda PELTIER/ROTH: Motion carried 7-0.  L. ARTS ANDI HUMANITIES BAINBRIDE CONTRACT, AB 16-118- - EXECUTIVE 8:281 PM  City Manager Schulze introduced the item. In late 2015, the contract between the City of Bainbridge Island and Arts & Humanities Bainbridge (AHB) was terminated due to organizational changes within AHB. These changes resulted in a staff determination that the contract terms could not be met in a manner that justified payment by the City of Bainbridge Island. During the past several months, City staff! have been working with. AHB representatives to re-establish a contract that met the needs oft the City of The contract has been prepared to inçorporate the duties AHB is responsible for carrying out as established in BIMC Chapter 2.42 and Chapter 3.80. In addition, the contract establishes a much) less involved reporting process for AHB, which should reduce staff  Bainbridge Island and would allow the City to provide funding to AHB.  time for AHB as well as the City. No public comment was offered.  MOTION: Imove the City Council forward the contract between. Arts and Humanities Bainbridge and the City of Bainbridge. Island to the August 23, 2016 consent agenda.  ROTH/SCOTT  Deputy Mayor Medina asked whether the $24,000 was for the final four months this year or all year. City Manager Schulze explained it's an annual amount. Interim City Attorney Nakata noted the City cannot pay for work that was done prior to it entering into a contract however you can pay the same amount that you would have for the whole year for the work that they are going to do Councilmember Peltier felti it was obvious the City was paying AHB for the whole year to which Interim City Attorney Nakata indicated the City was paying fort the work that they perform after they enter into the contract and the amount the City Council chooses toj pay them for that work is up to the them. Mayor Tollefson reiterated the contract states that AHB has to submit bills to get paid and that figure is an up to amount and not a guaranteed amount. He noted the contract would be expiring at the end ofthe year and City Council will be having a discussion about what kind of funding willl happen in the next biennium. City Manager  after the contract is signed.  Schulze indicated that AHB will bei requesting that the annual fee tol be doubled.  7    REGULAR CITY COUNCIL BUSINESS MEETING MINUTES  TUBSDAY,AUGUSTV206  Councilmember Peltier asked whether there was some: reason why a citizen advisory committee could not do this work. City Manager Schulze recalled it was aj policy discussion madel by aj previous City Council and that is how the ordinance is set up. He added this was a contract for the remainder of the year and that the City willl be dealing with 2017-18 funding during the Councilmember Peltier suggested turning this over to a citizen advisory committee as opposed to spending this amount of money in the future. City Manager Schulze explained there would be a staff component ift the work is brought in house related to the public art committee. Councilmember Peltier suggested some kind ofanalysis be done on! how much staffresources would be required in Councilmember Blossom indicated the contract states that they will submit quarterly invoices for services performed in a previous quarter which would suggest that we are paying them for work for done prior to the contract. She was confused why the City was paying them for a full year. Mayor Tollefson said they cannot invoice for work already done before the contract started. Interim City Attorney indicated the contract was written as though it was for a whole year therefore some oft thej provisions are not  budget process.  comparison to. AHB.  applicable because it's a partial year contract. 7. CONSENT AGENDA 8:381 PM A. CONSENT AGENDA COVER SHEET  The motion carried7-0,  B. ACCOUNTS PAYABLE VOUCHER ANDI PAYROLL APPROVAL Accounts Payable EFT Check Number 227, ACH Check Numbers 228-229, Manual Check Numbers 342081-342088 and Regular Run Check Numbers 342089-342217 for at total of$I,111,596.41. Payroll Direct Deposit Check Numbers 036484-036601, Payroll Regular Check Numbers 107725-107730, Payroll Vendor Check Numbers 107731-107744, Payroll Miscellaneous Check Number 107745, Payroll Vendor Check Number 107746 and Federal Tax C. I REGULAR CITY COUNCIL BUSINESS MEETING MINUTES, JULY2 26, 2016 D. REGULAR CITY COUNICL: STUDY SESSION MINUTES, AUGUST: 2, 2016  Electronic Transfer for at total of$615,888.83.  E. RESOLUTION NO. 2016-17, SUPPORTING FEDERAL AND STATE: LEGISLATION BANNING ASSAULT  WEAPONS, AB EIP-COUNCIMINDEE SCOTT  MOTION: Imove the City Council approve consent agenda items A through E as presented.  SCOTTPELTIER: Motion carried 7-0.  8. COMMITTEE REPORTS 8:39PM  A. ETHICS BOARD LIAISON NOTES, JULY 18, 206-COUNCILMEMBER SCOTT B. DESIGN REVIEW BOARD LIAISON NOTES, JULY 18, 2016-COUNCIINCILMEMBER PELTIER  9. REVIEW UPCOMING COUNCIL MEETING AGENDAS 8:39) PM  City Manager Schulze reviewed the August 16, 2016 agenda and upcoming calendar. Councilmember Blossom asked whether the bonded indebtedness discussion would relate to the public safety facility at all. City Manager Schulze explained there are three different options staffi is going to be talking with City Council about (how tol handle the public safety facility, potential packet for  non-motorized projects and funding for some Town Square improvements including parking).  10. FOR' THE GOOD OF THE ORDER 8:461 PM  Mayor Tollefson reported the Comprehensive Plan steering committee met recently and that the Planning Commission is committed tol holding its public hearings and workshops on the final form in September and dealing with potential adoption ofai final Councilmember Peltier explained he could not get himselft to vote in favor of Ordinance No. 2016-18 related to surplus property and  recommendation to the City Council at its first meeting in October.  asked that the minutes show that.  8    REGULAR CITY COUNCIL BUSINESS MEETING MINOTES  TUESDAY, AUGUST9,2016 11. ADJOURNMENT 8:47P PM Mayor Tollefson adjourned the meeting at 8:47) PM.  alTollefson, lay E24  Roalind osot Rosalind D. Lassoff, City Clerk  9