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Home My WebLink About12/11/02 AGENDA5. 6. 7. 8. FILE 239 4th Street · Bremerton, WA 98337 · Phone (360) ~t78-5280 · Fax (360) ~,78-5251 CITY COUNCIL MEETING AGENDA DECEMBER 11, 2002 PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in Council Conference Room A. General Council Business CALL TO ORDER: 5:30 P.M. in Council Chambers A. Pledge of Allegiance B. Invocation CONSENT AGENDA A. Minutes of Meeting - November 13, 2002 (#AB02-242) B. Minutes of Meeting - November 20, 2002 (#AB02-243) C. Agreement between the Washington State Department of Revenue, Edward Faulk, and the City of Bremerton (#AB02-244) CLAIMS/CHECK REGISTERS COUNCIL MEMBER REPORTS MAYOR'S REPORT PUBLIC RECOGNITION - Comments limited to 3-minutes NEW BUSINESS A. Amendment No. 1 to the '~asad Dam Intake Tower Seismic Upgrade Project" Professional Services Agreement for Design Services with ACRES INTERNATIONAL, CORPORATION (#AB02-245) PUBLIC HEARINGS - RESOLUTIONS & ORDINANCE~ A. Resolution No. 2880 for Garbage Removal (#AB02-246) ~..., B. Public Hearing approving a Street Vacation for a portion of 2"d Street East of Washington Ave n e/ (#AB02-247) C. Ordinance No. 4838 [Second Reading] amending the 2002 Budget (#AB02-240) D. Ordinance No. 4839 [Second Reading] adopting the 2003 Budget (#AB02-241) E. Ordinance [First Reading] relating to Commercial Parking Tax Rates (#AB02-248) F. Ordinance [First Reading] relating to Residential Parking Permits (#AB02-249) /d~ G. Ordinance [First Reading] relating to General Business Licenses (#AB02-250) / H. Ordinance [First Reading] relating to Business & Occupation (B&O) Taxes (#AB02-251) / I. Ordinance [First Reading] relating to Utility Taxes (#AB02-252) J. Ordinance [First Reading] relating to Administrative Provisions for Taxes (#AB02-253) / ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING E-mail: citycouncil@ci.bremerton.wa.us · Web- www. ci.bremerton.wa.us CITY COUNCIL MEETING DECEMBER 11, 2002 SPEAKERS LIST If you wish to make an announcement, inform the Council of an issue, or ask a general question... Please provide information below so staff will be able to contact you. Thank you. NAME ADDRESS/TELEPHONE TOPIC o 12//~/ lev__. o 3 MINUTE PRESENTATION ~ CITY COUNCIL ON Wednesday, December 11, 2002 By Helen Miller, Citizen Salutations: Madam President and Council members: Presentation: I will bring to your attention an Editorial comment published in last Sunday's Bremerton SUN. It saluted Mayor Horton's brilliant idea of requesting the Navy to deed the EAST PARK properties to the City. She and the City staff worked diligently to turn that idea into the reality of the City today having the wonderful oppommity to develop that land. Having knowledge of the many people within the City who worked on the East Park project under Mayor Horton - history would demand that we were also appraised of the efforts of Mr. Bozeman who, according to the SUN, deserved credit for the East park deal - (together with the Navy and Rep. Dicks) when he "contacted the Navy about obtaining the site during his first week in office.". Wonder what he said ???? SUN QUOTE: "CREDIT FOR THE EAST PARK DEAL MUST BE GIVEN TO NAVY OFFICIALS, TO US REP. NORM DICKS, AND CERTAINLY TO MAYOR BOZEMAN, WHO CONTACTED THE NAVY ABOUT OBTAINING THE SITE DURING HIS FIRST WEEK IN OFFICE." MEMBERS OF THE COUNCIL: As you prepare to vote on a very unpopular and controversial Ordinance which will institute Parking Fees in front of private residences, in certain areas of the city ............ The public should know that while the CITY is prepared to thus tax homeowners, the CITY is also planning to reward the most highly paid non elected officials in the City Govemment- Department Heads - with an unearned approximate One Thousand Eight Hundred Dollars - each - per year. It seem incongruous that a few short weeks ago the administration was recommending CUTTING Police and Firemen in order to balance the budget - and now ~ seeking approval to give those most highly paid officials some extra goodies. ~0;11 /0~ AGENDA BILL BREMERTON CITY COUNCIL 1. ~: MINUTES OF MEETING - NOVEMBER 13, 2002 FORAGENDA OF: DECEMBER 11, 2002 ORIGINATING DEPT: CITY COUNCIL ORIGINATOR: CAROL ARENDS, PRESIDENT DATE SUBMITTED: NOVEMBER 27, 2002 2. CLEARANCES: (Comment on back if necessary) 3. EXHIBIT__ S: ENDORSEMENT [~] MAYOR: INFORMATION APPROVED FOR SUBMITTAL BY COUItCIL PRESIDENT: ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: 5. RECOMMENDATIO~N: 7. NOTICE OF ACTION: PULLED [-] TABLED .COUNCIL DIRECTIVE: APPROVED 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED ~-] AMENDED [-] DATE: AGENDA BILL NO.:., 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING, BUDGETS, FACIIJTIES, EQUIPMENT OR OTHER RESOURCE,~_;: 11. ~SEARCH SOURCES: TAPES #1861 & #1862 CITY COUNCIL MEETING MINUTES November 13, 2002 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, November 13, 2002, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Ed Rollman, Daren Nygren, Cecil McConnell, and Wayne Olsen. Council member Mike Shepherd was absent. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation provided by Council President Carol Arends. President Arends made the following announcements: 1. A Pre-Council session was held in the Council Conference Room to discuss general Council business; followed by a 15-minute Executive Session to discuss a "REAL ESTATE ACQUISITION", 2. Under NEW BUSINESS, Item 8(A) was pulled from the Agenda; and Item 8(B) will be heard immediately following action on the CLAIMS & CHECK REGISTERS. CONSENT AGENDA A. Minutes of Meeting - October 23, 2002 (#AB02-215) 80025 M/S/C (McConnell/Olsen) Move to approve Consent Agenda as presented. Voted in favor of Motion: Olsen, McConnell, Nygren, Rollman, Maupin, Short, and Arends Abstained: Younger Motion carried: 7-Yes; 1-Abstention CLAIMS & CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing that had been made available to the Council. 80045 M/S/C/U (Younger/McConnell) On November 13, 2002 the Council approved payment for Check Numbers 276083 through 276253; 276254 through 276257; and 276286 through 276413 in the amount of $661,573.19 on the Master Check Register; and Regular Payroll for the pay period ending October 31, 2002 in the amount of $1,127,598.09. The following item was moved up on the Agenda... 8B - APPROVAL OF THE DESIGN AND BUILD CONSTRUCTION CONTRACT BETWEEN THE CITY OF BREMERTON AND OPUS NORTHWEST LLC (#AB02-217): Gary Sexton, Director of Economic Development, explained that this contract is for the project work through the construction phase of the downtown conference center. Mayor Bozeman announced that this may be the most important contract that the City Council will take action on, and that it is probably the most money brought to Council in the last 20 year. Don Larson raised the possibility of accommodating scuba divers and charter businesses. Carol Arends noted that this was an issue for the Port of Bremerton to address. Allen Shute asked if the Conference facility would be ADA (American Disabilities Act) compliant. Mr. Sexton stated most certainly "yes". Mr. Ny_aren referred to the memo from the Legal Department dated October 29, 2002, and asked if the concerns were addressed, particularly the concern regarding the lack of a 5% contingency fund. Mr. Lubovich assured the Council that all issues had been addressed. TAPES #1861 & #1862 City Council Reg. Mtg. Minutes November 13, 2002 Page 2 of 5 #0750 M/S/C/U (Rollman/Maupin) Move to approve and authorize the Mayor to finalize and execute the Design/Build Construction Contract between the City of Bremerton and OPUS Northwest LLC with substantially the same terms and conditions as contained in the proposed agreement and further to finalize and execute the air rights sale documents for the hotel and restaurant pads as a negotiated sale pursuant to Chapter 2.78 of the Bremerton Municipal Code subject to the approval of the City Attorney. COUNCIL MEMBER REPORTS Will Maupin discussed several meetings he recently attended. Ed Rollman encouraged the public to comment on the 2003 Budget during the Public Hearing scheduled next week on November 20, 2002. He also discussed an event he attended in honor of Veterans Day, and other veteran issues. Daren Ny._clren invited the public to the District 3 Neighborhood meeting on Tuesday, November 26 to discuss the "2003 Budget". He also thanked all those who attended the Manette Business Open House held last Friday. Carol Arend$ discussed several meetings she recently attended. MAYOR'S REPORT Mayor Bozeman... · Provided The latest figures from the "REVENUE AND PLAYER COMPARISON REPORT" from Gold Mountain Golf Complex, which showed in part that year-to-date, 94,231 players have visited both courses, generating $2,324,411.50 in Green Fees; · Announced the formation of "TEAM BREMERTON" to discuss such issues as how to attract a leading edge company to Bremerton; · Discussed his plan to appointment Kathy McCluskey to Administrative Project Manager for the Public Safety Bond Issue, and Michael Wilson as Interim Finance Director; and lastly · Accepted the 2002 Award of Excellence on behalf of the City from Mike. Horton of the Washington State Department of Transportation. PUBLIC RECOGNITION Allen Shute asked for a response from the City to his question regarding Handicap Parking decals; thanked citizens for their e-mails; and encouraged more citizens to attend Council meetings. Earle M. Sears of the American Bowling Association, asked the City for their support for a commercial bowling alley in Bremerton. Don Larson inquired about a Marine Protected Area for the City of Bremerton and a program to provide incentives for citizens who plant trees; and lastly, announced that trees will be planted on December 14 near the Warren Avenue Bridge at 10:00 A.M. ............................................... : Item was postponed... 8C - QUITCLAIM DEED BETWEEN THE U.S.A. AND THE CITY OF BREMERTON FOR THF ACQUISITION OF EASTPARK (#AB02-218): Roger Lubovich, City Attorney, summarized that federal legislation was passed authorizing the U.S.A. to transfer the property commonly known as Eastpark to the City of Bremerton pursuant to Section 2857 of Public Law 106-398. The proposed quitclaim deed transfers the property to the City. TAPES #1861 & #1862 City Council Reg. Mtg. Minutes November 13, 2002 Page 3 of 5 There were no comments from the public. Mr. Ny_~ren asked if by inheriting this property will there be any problems with infrastructure that will need to be resolved in order to develop the property; and asked for a copy of the Environmental Impact Statement from SEPA. Mr. Lubovich responded that it was his understanding that infrastructure would need to be replaced in its entirety; and that the issue of the Environmental Impact Statement would best be answered by Mr. Sexton who is currently not present to answer that question. Gene Saml~ley, Director of Public Works & Utilities, concurred that the infrastructure would not be of value to a developer and would need to be replaced. Mr. Maupin thanked the U.S. Navy for all their hard work in making this property available to the City; and Mr. Olsen specifically thanked Congressman Norm Dicks. ~2080 M/S/C/U (Younger/Short) Move to authorize the Mayor to finalize and execute a Quitclaim Deed in substantially the same form as presented between the U.S.A. and the City of Bremerton relating to the City's acquisition of Eastpark. 9A - ORDINANCE NO. 4826 [SECOND READING] LEVYING PROPERTY TAXES FOR COLLECTION IN 2003 (#AB02-212): First reading of this ordinance was heard on October 30, 2002. Cathy Johnson, Assistant City Treasurer, elaborated further on this ordinance, and offered to answer any questions. There were no comments from the public. //2198 M/S/C/U (Short/Maupin) Move to pass on second reading Ordinance No. 4826 levying property taxes for collection in 2003. 9B - ORDINANCE NO. 4827 [SECOND READING] SETTING RATES AND FEES FOR WATER FUND 401, WASTEWATER FUND 451, AND STORMWATER FUND 481 FOR 2003 (#AB20-213): The first reading of this ordinance was heard on October 30, 2002. Gene Sampley, Director of Public Works & Utilities, elaborated further on this ordinance, and offered to answer any questions. There were no comments from the public. 82281 M/S/C (Maupin/Short) move to pass Ordinance No. 4827, setting assessments, rates, fees, and charges. Voted in favor of this Motion: Maupin, Short, Olsen, McConnell, Nygren, Younger, and Arends Voted opposed to this Motion: Rollman Motion carried: 7-Yes; 1-No 9C - ORDINANCE [FIRST READING] REPEAUNG THE DOWNTOWN WATERFRONT URBAN RENEWAL PLAN; AND AMENDING THE ZONING CODE ESTABLISHING THE DOWNTOWN DISTRICT (#AB02-219): Roger Lubovich, City Attorney, said that the current provisions of the Zoning Code set forth in Chapter 21.02 BMC provide that downtown development standards be regulated by the Downtown Waterfront Urban Renewal Plan (DWURP), which is outdated and not conducive to development of the Downtown District. The proposed ordinance repeals DWURP and adds a new section to the Zoning Code relating to the Downtown District. Chris Hucjo, Director of Community Development, clarified that the ordinances brought to Council are to be considered as a program and the first two ordinances must both be passed for the program to be effective. There were no comments from the public. TAPES #1861 & #1862 City Council Reg. Mtg. Minutes November 13, 2002 Page 4 of 5 Mr. Hugo elaborated on "Prohibited Uses" at the request of Mr. Rollman. Mr. Hugo also addressed various issues brought up by Mr. Olsen, Mr. Maupin, and Mr. Younger. 83055 M/S/C (Younger/Maupin) Move to approve the proposed ordinance on first reading. Voted in favor of this Motion: Short, McConnell, Nygren, Rollman, Younger, Maupin, and Arends Voted opposed to this Motion: Olsen Motion carried: 7-Yes; 1-No 9D - ORDINANCE [FIRST READING] AMENDING THE SHORELINE MASTER PROGRAM RELATING TO DOWNTOWN DEVELOPMENT REGULATIONS (8AB0-220}: Roger Lubovich, City Attorney, pointed out that current provisions of the Bremerton Shoreline Master Program provide that downtown waterfront site development standards be regulated by the Downtown Waterfront Urban Renewal Plan. The proposed ordinance amends the Shoreline Master Program to allow development of the downtown waterfront in accordance with new development standards and regulations. Paula Johnston, Deputy City Clerk, read a letter into the record from Paul A. Schmidt, expressing his concerns regarding this proposed action. Chris Hugo responded that downtown corridor issues must be addressed due to imminent project activity and that view corridor issues would be considered next. Mr. Maupin and Mr. Rollman provided their support for the plan since it will provide a footprint for downtown for the next fifty years. TAPE 81862 80045 M/S/C (Short/Maupin) Move to approve the proposed ordinance on first reading. Voted in favor of this Motion: McConnell, Nygren, Rollman, Younger, Maupin, Short, and Arends Voted opposed to this Motion: Olsen Motion carried: 7-Yes; 1-No 9E - ORDINANCE [FIRST READING] REAFFIRMING DESIGNATED BLIGHTED AREAS; RE- DESIGNATING THE PROJECT AREA; AND CREATING A NEW COMMUNITY RENEWAL PLAN FOR THE PROJECT AREA (8AB02-221): Rocjer Lubovich, City Attorney, emphasized that the proposed ordinance reaffirms the blighted areas as designated and reaffirmed in Resolution Nos. 1730 and 2117, creates a new Community Renewal Area for Community Renewal Projects re-designating the same as the "Project Area", and creates a new Community Renewal Plan for the Project Area. There were no comments from the public. Mr. Lubovich clarified for Mr. Rollman that the range of the designated blighted area will extend to 6th Street and Park Avenue. 80200 M/S/C/U (Maupin/Rollman) Move to approve the proposed ordinance on first reading. 9F - ORDINANCE [FIRST READING] AUTHORIZING THE ISSUE OF GENERAL OBLIGATION BONDS TO FINANCE THE PUBLIC SAFETY FACILITIES (8AB02-222): Cathy Johnson, Assistant City Treasurer, pointed out that this ordinance will authorize the financing necessary to acquire additional police vehicles, fire trucks, apparatus and equipment; and to acquire land, construct, remodel, and equip new fire, police and court facilities. This project has been reviewed by Council in the context of the 2002-2007 ClP and is included in the 2003 preliminary budget. The bond issue proposed is a 25 year, Unlimited Tax General Obligation with level debt service. While the debt will be a general obligation of the City, it is expected that repayment will be made from annual property tax levies upon property in the City as approved by the voters on September 17, 2002. It was noted that the Bond pricing would take place Tuesday, November 19; and would be presented at Second Reading on TAPES #1861 & #1862 City Council Reg. Mtg. Minutes November 13, 2002 Page 5 of 5 Wednesday, November 20; with closing expecting to take place on December 3. Dan Gothrig with the Bond Council, provided additional comments regarding the Obligation Bonds. There were no comments from the public. #0525 M/S/C/U (Maupin/Olsen) Move to approve on first reading the ordinance authorizing the bond issue for the acquisition of Public Safety Equipment and Facilities. 9G - RESOLUTION NO. 2878, AUTHORIZING THE USE OF GLASS CULLET (#AB02-223): Gene Sam_oley, Director of Public Works & Utilities, noted that RCW 42.19A.020 encourages local jurisdictions to set goals and standards for buying products made from recycled materials. Currently, there is more glass being recycled than can be remanufactured back into glass containers resulting in an oversupply in the Puget Sound region. To address this problem new uses for recycled glass cullet as construction aggregate have been developed and the Washington State Department of Transportation (VVSDOT) has approved specifications for glass culler to be used for a variety of construction aggregate applications. The attached resolution authorized the Public Works and Utilities Department to preferentially use glass cullet, processed from materials collected in Kitsap County which meets WSDOT specifications for construction aggregate, as long as the glass cullet is used in appropriate construction application, readily available and cost-competitive with natural aggregate materials. Staff recommends approval of the attached Resolution. There were no comments from the public. Mr, Rollman asked if other recycled materials would be considered for use in the future. Mr. Sample¥ answered that this product will be used anywhere that there is an appropriate use and following research, there may be a variety of applications available for uses of this material. ~ff)623 M/S/C/U (Nygren/Olsen) Move to adopt Resolution No. 2878 approving the preferential use of glass cullet as set forth therein. With no further regular business, the meeting adjourned at 7:31 P.M. Prepared and Submitted by: Attest: LORI SMITH Council Liaison PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CA/PJ/Is/cge c: Normal Distribution; File 7 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: MINUTES OF MEETING - NOVEMBER 20, 2002 FORAGENDA OF: DECEMBER 11, 2002 ORIGINATING DEPT: CITY COUNCIL ORIGINATOR: CAROL ARENDS, PRESIDENT DATE SUBMITTED: NOVEMBER 27, 2002 2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: ENDORSEMENT I~l MAYOR: INFORMATION APPROVED FOR SUBMITTAL BY COUNCIL PRESIDENT: ~ , 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: 5. RECOMMENDATION: 7. NOTICE OF ACTION: PULLED [--] TABLED [--] COUNCIL DIRECTIVE: APPROVED RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED [-~ AMENDED [--] DATE: 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING, BUDGETS~ FACILITIES, EQUIPMENT OR OTHER RESOURCE,~: 11..RESEARCH SOURCES: TAPES #1863 & #1864 CITY COUNCIL MEETING MINUTES November 20, 2002 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4t~ Street, Bremerton, Washington, Wednesday, November 20, 2002, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Ed Rollman, Daren Nygren, Cecil McConnell, and Wayne Olsen. Council member Mike Shepherd was absent. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Council Liaison Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation provided by Reverend Debbie Little of First Christian Church. CONSENT AGENDA - There were no Consent Agenda Items this week. CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing that had been made available to the Council. #0024 M/S/CIU (Younger/McConnell) On November 20, 2002 the Council approved payment for Check Numbers 276424 through 276582 in the amount of $776,113.03 on the Master Check Register. COUNCIL MEMBER REPORTS Wayne Olsen referred to the letters and e-mails received by citizens regarding Bremerton Bowl, and asked the City Attorney to address the issue. RoRer Lubovich, City Attorney, provided an update on the City's position. Cecil McConnell reported on his visit to the project-site at the Gold Mountain Golf Course to see h,ow construction of the snack bar, restrooms, and storage area was proceeding. Daren Nygren announced the next District 3 Manette Neighborhood meeting would be held Tuesday, November 26, 2002 at the Manette Senior Center from 7:00 to 8:30 P.M. to pro{/ide citizens an opportunity to provide input and comments on the City's 2003 Budget. Ed Rollman was pleased to report that permit activity for building in Bremerton was up; and welcomed citizens who came out to comment on the 2003 Budget. Lastly, on behalf of fellow Council member Mike Shepherd, he announced the next District 5 Neighborhood meeting would be held on Thursday, November 21, 2002 from 6:30 to 8:30 P.M. at Memorial Lutheran Church located at 10th & Veneta allowing citizens to hear updates on "Nuisance Properties" and "Chester Terrace". Will Maupin mentioned several meetings he has attended since last week, including the Puget Sound Regional Council meeting in Seattle, and the Bremerton Housing Authority Board meeting. Mike Short also reported on several meetings he recently attended, including a meeting of the Peninsula Regional Transportation Planning Organization. Carol Arends also attended the Transportation Policy Board Meeting which she found very informative and also reminded citizens about the First Friday Art Walk events. MAYOR'S REPORT Mayor Bozeman... · Summarized the position of the City regarding the Bremerton Bowl project; · Small Business Administration TAPES #1863 & #1864 City Council Reg. Mtg. Minutes November 20, 2002 Page 2 of 6 Thanked Bremerton Rotary for providing the second installment on their donation of $100,000 for Evergreen Park Was pleased to report that Seattle, with five surrounding areas, including the City of Bremerton, was mentioned in an article about Seattle chosen as one of the "Best Places to Live" in CNN Money Magazine. PUBLIC RECOGNITION Don Larson read the Vision Statement drafted by the Environment Committee from the "Shaping Bremerton" workshops; and encouraged the City to plant more trees. Jim Trainer announced a tree planting event on Saturday, December 14 at 10:00 A.M. at the end of the Warren Avenue Bridge. Everett D. Clark read a statement into the record asking for information on rezoning his property located at 615 & 619 4th Street as "Residential-Arts District"; and/or VA lenders who can assist him in securing the property on or before December 5 when the earnest Agreement on the property expires. Carol Atkinson announced that "Santa Clause was coming to town!" by fire truck on Friday, December 6, 2002 at 5:30 P.M. Becky Lorber announced "It's a Wonderful Life" would be performed on Sunday, December 8 starting at 6:00 P.M. at the C-Stock Theater located at 9729 Silverdale Way NW in Silverdale. Larry Meyers commented on, and encouraged the City to support the Bremerton Bowl project. Pamela Buckingham announced a meeting on Thursday, December 5 at the Kitsap Historical Museum to discuss "Historical Preservation". 8A - CONFIRMATION OF MICHAEL R. WILSON AS DIRECTOR OF FINANCE (#AB02-224): Mayor Bozeman summarized in Bremerton Municipal Code Section 2.05.020, Mayoral appointments of department directors are subject to confirmation by the City Council. The Mayor wishes to formally appoint Mr. Michael R. Wilson as Director of Finance with an employment start date of December 2, 2002. An "Organizational Proposal" was distributed to the Council. Mr. Lubovich clarified that the item before Council was specifically the confirmation of Michael R. Wilson. There were no comments from the public. Mr. McConnell and Eric Younger expressed their concern at not receiving the "Organizational Proposal" at an earlier time to allow for a thorough review. #1325 M/SIC (Maupin/OIsen) Move to approve the appointment of Michael R. Wilson as Director of Finance for the City of Bremerton effective as of December 2, 2002, and authorize the Mayor to execute an employment contract in substantially the same and conditions as the proposed contract. Voted in favor of Motion: Nygren, Rollman, Maupin, Short, Olsen, and Arends Opposed to Motion: McConnell, Younger Motion carried: 6-Yes; 2-No 8B - APPOINTMENT OF LYNN HORTON TO THE BREMERTON HOUSING AUTHORITY (#AB02- 225): Mayor Bozeman announced that the term of a current board member expires November 30, 2002. The Mayor recommends the vacancy be filled by Lynn Horton. Butch Dunap, Chair for the Bremerton Housing Authority Board, urged the Council to confirm this appointment. There were no comments from the public. TAPES #1863 & #1864 City Council Reg. Mtg. Minutes November 20, 2002 Page 3 of 6 Lynn Horton expressed her willingness to serve on this Committee. #1645 MlSlCIU (Maupin/Younger) Move to confirm the appointment of Lynn Horton to the Bremerton Housing Authority Board effective November 30, 2002. 8C - WASHINGTON STATE TRAFFIC SAFETY COMMISSION GRANT FOR MOTORCYCLER (#AB02-226): it was summarized that the Traffic Safety Commission grant provides funding ($8,248.44) to lease two motorcycles that would be used to reduce traffic-related collisions, injuries and deaths. The Department provides 516 officer hours which will be directed in school zone enforcement and the Gateway Corridor Project to meet in-kind match requirements. There were no comments from the public. #1735 M/S/C/U (ShortJOIsen) Move to approve acceptance of this Washington Traffic Safety Commission Grant for $8,248.44, and comply with the special conditions according to grant administration. 8D - LEASE AGREEMENT RENEWAL WITH BREMERTON COMMUNITY THEATER (#AB02-227): Becky Lorber, of Parks & Recreation, pointed out that although the current ten-year lease with Bremerton Community Theater expires on December 31, 2002, the existing lease has been reviewed and updated. The new lease would run through 2012 and allows the City of Bremerton use of the facility, on a non-interference basis, with adequate notice. Bremerton Community Theater assumes full responsibility for facility expenses and is required to carry a two million dollar liability insurance policy. There were no comments from the public. #181 $ (Olsen/McConnell) Move to approve a ten-year renewal of the Bremerton Community Theater lease with the Bremerton Parks & Recreation Department. 8E - CONTRACT AWARD FOR SEWAGE PUMP STATION EB-2 (#AB02-228): Michael Mecham, City Engineer, summarized that modifications to Sewage Pump Station EB-2 are required for the Trenton/Cherry Combined Sewer Overflow (CSO) reduction improvements set forth in the City's CSO Reduction Plan and required for compliance with the PSA Consent Decree. Bids were opened for the Sewage Pump Station EB-2 2002 Modifications project on November 8, 2002. There were two bids received for this project. Stan Palmer Construction was the lowest responsive bidder with a bid of $1,674,242.50. The Engineer's estimate for the project ranged from $1,600,000 to $1,900,000, including applicable taxes. The requested action before the City Council is approval of the contract with Stan Palmer Construction for construction of the Sewage Pump Station EB-2 2002 Modifications project. There were no comments from the public. #1995 MISICIU (Younger/Short) Move to approve award of the Sewage Pump Station EB-2 2002 Modifications project to Stan Palmer Construction, for the amount of $1,674,242.50, including applicable taxes and authorize the Mayor to execute the same. 8F - AMENDMENT TO TRANSPORTATION COMPREHENSIVE PLAN PROFESSIONAL SERVICES AGREEMENT WITH PARAMETRIX, INC (#AB02-229): Michael Mecham, City Engineer, said that the Department of Public Works and Utilities has negotiated an amendment to the Transportation Comprehensive Plan Professional Services Agreement with Parametrix, Inc. The amendment scope of work consists of a study of traffic circulation options in downtown Bremerton. This study will consider the effects of relocating exiting ferry traffic from Washington Avenue to Pacific Avenue and without the Bremerton tunnel project. The amendment adds $58,183 to the existing $98,935 contract for a revised 12. TAPES #1863 & #1864 City Council Reg. Mtg. Minutes November 20, 2002 Page 4 of 6 contract amount of $157,118. The request before the City Council is approval of an amendment to the Professional Services Agreement with Parametrix, Inc. There were no comments from the public. Mr, Nvaren reiterated his request that caution be used to not duplicate studies. Mr. Rollman further requested that the study also consider the effects of traffic on the Manette area and downtown corridor. #2175 MISlCIU (Short/Maupin) Move to approve an amendment to the Professional Services Agreement with Parametrix, Inc. to conduct a traffic circulation study of downtown Bremerton in an amount of $58,183, for a total contract amount of $157,118, and authorize the Mayor to execute the same. 9A- RESOLUTION NO. 2879. SETTING A HEARING DATE FOR DECEMBER 11, 2002 FOR VACATING A PORTION OF 2kD STREET~ EAST OF WASHINGTON AVENUE (#AB02-230): Michael Mecham, City Engineer, affirmed that the City initiated the vacation of a portion of 2"d Street east of Washington Avenue. The vacated area will be incorporated into the abutting City owned property to provide a site compatible with usage for downtown redevelopment. Functionality of 2nd Street as a transportation facility will not be significantly affected. Access to the waterfront will not be impeded with this vacation. The City Council is being requested to establish a hearing date of December 11,2002, to consider the proposed vacation. Staff recommends passage of the proposed resolution. There were no comments from the public. #2320 M/S/CIU (McConnell/Olsen) Move to pass Resolution No. 2879, setting a hearing date of December 11, 2002, for vacating a portion of 2nd Street east of Washington Avenue. 9B - ORDINANCE NO. 4828 [SECOND READING] REPEALING THE DOWNTOWN WATERFRONT URBAN RENEWAL PLAN; AND AMENDING THE ZONING CODE ESTABLISHING THE DOWN- TOWN DISTRICT (#AB02-219): The first reading of this ordinance was heard on November 13, 2002. Roaer Lubovich, City Attorney and Chris Hugo, Director of Community Develgpment, provided an amended copy of this ordinance and offered additional clarification on the intent of the proposed language. Helen Miller read a statement into the record expressing her concerns on this ordinance. #2725 M/S/C/U (Rollman/McConnell) Move to continue the Second Reading to December 30, 2002. 9C - ORDINANCE NO. 4829 [SECOND READING1 AMENDING THE SHORELINE MASTER PROGRAM RELATING TO DOWNTOWN DEVELOPMENT REGULATIONS (#AB0-220): The first reading of this ordinance was heard on November 13, 2002. Ro_~er Lubovich, City Attorney, provided additional comment regarding this ordinance. Helen Miller stated that the previous statement she read into the record expressing her concerns also applied to this ordinance. #2825 M/S/C/U (Rollman/McConnell) Move to continue the Second Reading to December 30, 2002. 9D - ORDINANCE NO. 4830 [SECOND READING1 REAFFIRMING DESIGNATED BLIGHTED AREAS; RE-DESIGNATING THE PROJECT AREA; AND CREATING A NEW COMMUNITY RENEWAL PLAN FOR THE PROJECT AREA (#AB02-221): The first reading of this ordinance was heard on November 13, 2002. Ro~er Lubovich, City Attorney, provided additional comment regarding this ordinance. TAPES #1863 & #1864 City Council Reg. Mtg. Minutes November 20, 2002 Page 5 of 6 Helen Miller again stated that the previous statement she read into the record expressing her concerns also applied to this ordinance. #2985 M/S/C/U (Rollman/McConnell) Move to continue the Second Reading to December 30, 2002. 9E - ORDINANCE NO. 4831 [SECOND READING] AUTHORIZING THE ISSUE OF GENERAl OBLIGATION BONDS TO FINANCE THE PUBLIC SAFETY FACILITIES (#AB02-222): The first reading of this ordinance was heard on November 13, 2002. Richard Saunders, Interim Director of Finance Director, summarized the update of the bond sale. Jane Towery Managing Director of Banc of America Securities, LLC and with the Bond Council, provided further clarification on the bond sale, and how the rating was obtained. TAPE #1864 There were no comments from the public. #0105 M/S/CIU (Younger/Maupin) Move to pass on second reading Ordinance No. 4831 authorizing the bond issue for the acquisition of Public Safety Equipment and Facilities. 9F ' ORDINANCE [FIRST READING1 ESTABLISHING THE PUBLIC SAFETY PROJECTS FUND (#AB02-23'1): Richard Saunders, Interim Director of Finance, announced the proposed ordinance would create a new fund to be called the Public Safety Projects Fund. This fund is intended to provide for the budge and accounting associated with acquisition of the Public Safety equipment and facilities approved by the voters on September 17, 2002. There were no comments from the public. #0155 M/S/C/U (Short/McConnell) Move to approve on first reading the ordinance creating the Public Safety Projects Fund. 9G - ORDINANCE [FIRST READING] ESTABLISHING THE DISCRETIONARY RESERVE FUND (#AB02-232): Richard Saunders, Interim Director of Finance, summarized that this proposed ordinance adds a new Chapter 3.38 to the Bremerton Municipal Code, entitled "DISCRETIONARY RESERVE FUND", which establishes the discretionary reserve as previously approve by City Council on August 14, 2002. There were no comments from the public. Mr. McConnell requested that the Council receive a periodic report regarding the funds in this account. #0245 M/S/C/U (McConnell/Short) Move to approve the proposed ordinance on first reading. 9H - ORDINANCE [FIRST READING] RELATING TO LID ASSESSMENTS {#AB02-233): Ro_~er Lubovich, City Attorney, emphasized that the proposed ordinance amends Section 11.04.040 of the Bremerton Municipal Code to clarify the definition of local improvement districts and adds a new section, Section 11.04.050, entitled "DELINQUENT ASSESSMENTS" to provide for the acceleration of the entire assessment for purposes of collection and foreclosure when installment payments become delinquent. There were no comments from the public. ~ff)375 M/S/C/U (Short/Maupin) Move to approve the proposed ordinance on first reading. Item 9(/) was moved to the end of the Agenda .... TAPES #1863 & #1864 City Council Reg. Mtg. Minutes November 20, 2002 Page 6 of 6 9J - ORDINANCE [FIRST READING] RELATING TO HEARING EXAMINER APPLICATIONS AND APPEALS (#AB02-236): Rocler Lubovich, City Attorney, clarified that this proposed ordinance amends Chapters 2.13, 17.04, 18.02, and 18.03 of the Bremerton Municipal Code relating to the filing of Hearing Examiner applications and appeals, and correcting code provisions relating to appeals to be heard by the Administrative Hearing Examiner. There were no comments from the public. #0455 M/S/C/U (McConnell/Short) Move to approve the proposed ordinance on first reading. 9K - PUBLIC HEARING REGARDING THE 2003 BUDGET (#AB02-236): Richard Saunders, Interim Director of Finance, announced that state statute requires that the City hold a public hearing regarding the 2003 budget prior to adoption. He presented a Power Point presentation on an "Overview of the 2003 Budget". Sylvia Klatman Executive Director of the Bremerton Area Chamber of Commerce (BACC), thanked the Council for supporting the recommendations of the Lodging Tax Advisory Committee; and also provided information on how the money allocated to BACC was spent last year. No Council Action was required at this time. 91- ORDINANCE [FIRST READING] AMENDING BREMERTON MUNICIPAL CODE CHAPTER 3.01 "RATES & FEES" TABLE FOR 2003 (#AB02-234): Roger Lubovich, City Attorney, said that the proposed ordinance updates the rates and fees for certain City Departments for 2003. There were no comments from the public. #1175 M/S/C/U (Younger/Olsen) Move to approve the proposed ordinance on first reading. With no further regular business, the meeting adjourned at 8:00 P.M. Prepared and Submitted b~ Attest: LORI SMITH Council Liaison PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CA/PJ/Is/cge c: Normal Distribution; File /5 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA: December 11, 2002 AGREEMENT BETWEEN THE WASHINGTON ORIGINATING DEPT: City Attorney's Office STATE DEPARTMENT OF REVENUE, EDWARD ORIGINATOR: Roger A. Lubovich FAULK AND THE CITY OF BREMERTON DATE SUBMITTED: December 5, 2002 . CLEARANCI~.S: (Comm~necessary) p~OGI~R A. LUBOVIC--"H, City Attorney .... FISCAL & BUDGET CHAIRMAN 3. EXHIBITS: Proposed Agreement between the Washington State Department of Revenue, Edward Faulk and the City of Bremerton OPERATIONS CHAIRMIddN APPROVED FOR SUBMITTAL: MAYoRENDORSEMENT~z~ I--Il ~TION [~ COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The Department of Revenue (DOR) conducted an audit relating to the professional services provided by Edward G. Faulk at the Gold Mountain Golf Complex and assessed retail sales tax and retail B&O tax in the amount of $180,190. With interest, the total amount due to the DOR is over $220,000. The City is responsible for payment of the tax pursuant to RCW 82.08.050. The proposed agreement reduces the amount payable to the DOR by the City to $85,000 in full satisfaction of the liability against Edward G. Faulk and the City. As a condition of the agreement, this sum must be paid no later than December 31, 2002. 5. RECOMMENDATION: Move to approve the proposed Agreement between the Washington State Department of Revenue, Edward Faulk and the City of Bremerton; to authorize the Mayor to execute the same; and to authorize the Finance Department to issue a check in the amount of $85,000 payable to the Washington State Department of Revenue upon execution of the agreement by the Mayor. 7. NOTICE OF ACTION: PULLED ~-] TABLED [~] COUNCIL DIRECTIVE: APPROVED [-~ 6. RESPONSIBLE OFFICIAL: Finance Director ENFORCEMENT OFFICIAL: Finance Director EXPIRATION DATE: n/a REVIEW DATE: n/a ~ ,~ DISAPPROVED I--] AMEND 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: The City would be required to pay the full amount of assessment and interest due to the DOR, over $220,000. 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: The budget would be adversely impacted if the City was required to pay the full amount of the assessment. 11. RESEARCH SOURCES: I? CLOSING AGREEMENT NO. 3772 FAULK, EDWARD G. dba Ed Faulk Operation Registration No. 600 617 865 FY200210770/Audit No. 100494 Tax Period: January 1, 1998 through December 31, 2001 Type of Tax Protested: Retail Sales Tax and Retailing B&O Amount Protested: $180,190 plus interest Amount Compromised $95,190 plus interest Amount Due $85,000 THIS AGREEMENT is entered into by and between the State of Washington Department of Revenue (the "Department"), the above-reference Taxpayer ("Taxpayer"), and the City of Bremerton. RECITALS Taxpayer is a sole proprietorship providing professional services as grounds superintendent of a municipal golf complex, under contract ("Professional Services Agreement") with the City of Bremerton, since 1996. He is an independent contractor. He employs a number of grounds maintenance workers to perform the contract services. His contract price includes his employee expenses and other operating expenses. The Department has audited Taxpayer for the above period, and found he had unreported gross income from landscape and horticultural services that was subject to Retailing B&O tax and retail sales tax. The audit concluded Taxpayer was obligated to collect and remit retail sales tax and pay retailing B&O tax on the full contract price. The Department has issued a tax assessment against Taxpayer for the above period as follows (per post assessment adjus~tment issued August 6, 2002): Document No. 200210770 Taxpayer, joined by Type of Tax/Interest/Penalty Retail Sales Retailing B&O Audit interest Extension interest to 9/5/2002 the City of Bremerton, contests Amount $170,389 $9,801 $24,409 $2,868 the assessment and requests compromise of the amount assesSed. Their petition for correCtion is now pending befOre the Department, s Appeals Division. The City of Bremerton joins in the petition because, under RCW 82.08.050, it is responsible for payment of any retail sales tax found due, and the Department may proceed against the City for payment. The Department, Taxpayer, and the City of Bremerton acknowledge that settlement is appropriate under the criteria set out in WAC 458-20-100, and agree it is in their mutual interest to compromise and settle all issues relating to the assessment. They acknowledge Taxpayer has been Closing Agreement No.3772 2 Registration No. 600 617 865 reporting revenues under the Retailing classification, and collecting and remitting retail sales tax on receipts under his contract with the City, beginning January 2002. In consideration of the mutual promises set forth herein, and other good and valuable consideration, the Department, Taxpayer, and the City of Bremerton agree as follows: AGREEMENT 1. The City of Bremerton will pay to the Department, in full satisfaction of Taxpayer's liability under the assessment, and in full satisfaction of liability the City may have for retail sales tax on its payments under its professional services agreement with Taxpayer during the audit period, the sum of $85,000, on or before December 31,, 2002 2. Taxpayer will continue reporting all gross receipts under his professiOnal services agreement with the City of Bremerton, including amounts the current agreement labels as "reimbursements" for employee and other expenses, in the Retailing B&O category and will pay the appropriate tax. 3. Taxpayer will continue collecting and remitting retail sales tax on his gross receipts under his professional services with the City of Bremerton, including on amounts the current agreement labels as "reimbursements" for employee and other expenses. 4. Taxpayer acknowledges that his services as an independent contractor providing greens and grounds maintenance and improvement services for the City of Bremerton are classified as a retailing activity for excise tax purposes, and that under his present an/t any future contract to provide those services, he must report and pay retailing B&O tax, and must report, collect, and remit retail sales tax, on the full contract amount, as required by WAC 458-20-226. Taxpayer further acknowledges that RCW 82.08.050 specifically requires that the retail sales tax must be stated separately from the selling price on any contract or other instrument of sale, and the law creates a conclusive presumption that, for purposes of collecting the tax and remitting it to the state, the selling price quoted in the contract or other instrument of sale does not include the retail sales tax. 5. Taxpayer acknowledges that paragraphs 2, 3, and 4 above constitute "specific written instructions as to reporting or tax liabilities" within the meaning of RCW 82.32.090 and that failure to follow said instructions may subject Taxpayer to the penalties set forth therein. The above instructions are in effect until there is a change in law, either statutory or common law, or rule change, or, after reviewing Taxpayer's records, the Department notifies Taxpayer that it is no longer appropriate to report in this manner. Closing Agreement No.3772 3 Registration No. 600 617 865 6. The sum specified in paragraph 1 above must be sent to the Department at the following address by first class mail, postage prepaid, postmarked not later than December 27, 2002: State of Washington Department of Revenue Appeals Division Post Office Box 47460 Olympia, Washington 98504-7460 In lieu of mailing, the City of Bremerton may deliver payment to the Department at the following address not later than 2:30 p.m. on December 31, 2002: State of Washington Department of Revenue Appeals Division Capitol Plaza Building, Suite 101 1025 East Union Olympia, Washington 98501 The signed closing agreement should accompany the payment. Time is of the essence of this agreement and of every term and provision hereof. In the event the City of Bremerton fails to make timely payment of any amount due hereunder, Taxpayer and the City of Bremerton will lose the benefit of the reduced tax liability set forth in paragraph 1 above, and the full amount of the assessment will be reinstated and become immediately due and collectible, together with additional interest and penalties which may thereafter accrue. 7. Execution of this agreement by the Department, Taxpayer, and the City of Bremerton operates as a dismissal, with prejudice, of their joint petition for correction of assessment now pending before the Department's Appeals Division, as an unconditional waiver by Taxpayer of any right to further challenge the assessment or the Department to pursue collection of the assessment in any administrative or judicial proceeding, and as an unconditional waiver by the Department to pursue collection of retail sales tax against the City of Bremert0n with respect to payments, during the audit period, under the City's agreement with Taxpayer. 8. The signatories hereto each represent and warrant that all necessary signatures and/or consents to enter into this agreement and to assume and perform the obligations hereunder have been duly and properly obtained. 9. Each term and provision of this agreement is deemed to have been explicitly negotiated at arms' length by the Department, Taxpayer, and the City of Bremerton, and in the case Closing Agreement No.3772 4 Registration No. 600 617 865 of any dispute will be construed and interpreted according to its fair meaning and not strictly for or against either party including, specifically, the Department, as drafting party. 10. Taxpayer and the City of Bremerton represent and warrant to the Department that the decision to enter into this agreement is not based upon any representation by the Department, or by any attorney, employee, or other representative of the Department, and that Taxpayer and the City of Bremerton have either obtained independent legal advice prior to executing this agreement or have chosen not to obtain such advice. 11. No suit, action or proceeding of any kind, type, or nature whatsoever arising out of or in any way relating to this agreement will be commenced by Taxpayer or the City of Bremerton other than in the Superior Court of Thurston County, Washington. 12. This agreement is being entered 'into and will be construed and interpreted in accordance with the laws of the state of Washington. 13. This agreement, and the documents executed in accordance with the provisions hereof, embrace and include the entire transaction between the parties and may not be changed except upon the written assent of all parties hereto. 14. In the event any term or provision of this agreement, or its application to any party, circumstance, tax liability or tax immunity, is annulled, modified, set aside, or disregarded by a court of competent jurisdiction, the remainder of this agreement, and/or the application of any term or provision hereof to any other circumstance, tax liability, or tax immunity, will not be affected. 15. Unless specifically set forth herein, this agreement will not bind the Department to a particular future treatment of any tax liability or immunity of Taxpayer or the City of Bremerton. IN W1TNESS WHEREOF, the Department, Taxpayer, and the City of Bremerton have duly executed the foregoing agreement on the day and year first above written. / / / / / / / / / / / / Closing Agreement No.3772 5 Registration No. 600 617 865 TAXPAYER: Its: ~6(,3,,~- ~, N~e of Signatow (print) Date: {%- ~""0% CITY OF BREMERTON: By: Its: Date: Name of Signatory (print) DEPARTMENT OF REVENUE By: Its: Susan Y. Price Assistant Director Appeals Division Date: AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: AMENDMENT NO. 1 TO THE CASAD DAM INTAKE TOWER SESIMIC UPGRADE PROJECT PROFESSIONAL SERVICES AGREEMENT FOR DESIGN SERVICES WITH ACRES INTERNATIONAL COROPORATION. 2. CLEARANCES: (comment on back 3. Director, Public Works/Utilities City Attorney Administrative Services Director Budget & Finance Committee Operations Committee M^YO /.4t. e FOR AGENDA OF: December 11, 2002 ORIGINATING DEPT: PW&U Engineering Division ORIGINATOR: Michael C. Mecham, City Engineer DATE SUBMITTED: November 20, 2002 EXHIBITS A. Amendment No. 1 to the Professional Services Agreement with Acres International Corporation B. Professional Services Agreement APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: COUNCIL PRESIDENT ~ ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The Department of Public Works and Utilities has negotiated an amendment to the Casad Dam Intake Tower Seismic Upgrade Project Professional Services Agreement for design services with Acres International Corporation. This amendment adds scope and budget for evaluation of alternatives braces, and replacement of the tower gate operators and operating rods. The amendment adds $35,275 to the existing contract of $152,858, for a revised contract amount not to exceed $188,133. There are sufficient funds within the DWSRF loan to fund this amendment. The requested action before the City Council is approval of Amendment No. 1 to the Professional Services Agreement with Acres International Corporation. 8. RECOMMENDATION: Move to approve Amendment No. 1 to the Professional Services Agreement with Acres International Corporation in an amount of $35,275, for a total contract amount not to exceed $188,133, and authorize the Mayor to execute the same. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE 10. NOTICE OFACTION APPROVED DISAPPROVED 11. AGENDA BILL NO: O~ '"~ ~ 5 3.3 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City would not have the design support necessary to complete the project. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: Staffing: Budget: Facilities: No impacts. The Casad Dam Intake Tower Seismic Upgrade Project is funded by a Drinking Water State Revolving Fund (DWSRF) loan and is included in the 2002 and 2003 Budget. No impacts. 7. RESEARCH SOURCES ab, Agenda Bills, 2002, Casad Dam Intake Tower, Amendment No. a to PSA with Acres International Corp. AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT w/ACRES INTERNATIONAL CORPORATION FOR DESIGN AND CONSTRUCTION SUPPORT SERVICES The City of Bremerton, Washington, (the "City"), and Acres International Corporation, ("Consultant") have entered into a PROFESSIONAL SERVICES AGREEMENT, hereinafter referred to as AGREEMENT for a project described as the Casad Dam Intake Tower Seismic Upgrade. This AMENDMENT NO. 1 modifies the Scope of Work and Budget set forth in the AGREEMENT dated January 16, 2002, as follows: The Scope of Work shall be modified to add additional scope items as outlined in the attached Amendment No. 1, Exhibits E and F. The term of the contract shall be extended to December 31, 2003. The Compensation for services shall be increased by $35,275.00, and the total fees under this Agreement shall not exceed One Hundred Eighty Eight Thousand One Hundred Thirty three dollars ($188,133.00). Except as herein modified, the terms of the AGREEMENT shall remain in full force and effect. In WITNESS WHEREOF, the parties hereto have executed the AMENDMENT NO..1 to the Professional Services Agreement on the date and year indicated. For Acres International Corporation, dated this __ day of ,2002. By: For the City of Bremerton, dated this __ day of ,2002. DEPARTMENTAL APPROVAL: By: Cary Bozeman, Mayor W. Eugene Sampley, Director of Public Works and Utilities APPROVED AS TO FORM: City Attorney RECEIVED FOR FILING: Kathleen McCluskey, City Clerk Exhibit E Casad Dam Intake Tower Seismic Upgrade Scope of Work for Tasks Covered by Amendment No. 1 1. Project Management Extension Subtask 1.4 - Project Management Extension: It is proposed that project management be extended an additional year, September 2002 through September 2003. The extension has become necessary since construction was delayed one year in order to wait for technical information and cost information from Nippon Steel Corporation concerning their un-bonded brace struts. PM activities covered under this subtask would be related to providing technical direction, coordination and management during the final design phase. Also included under this subtask would be coordination meetings with the City. A total of 2 additional meeting are assumed. The original contract covers PM during construction. 2. Nippon Steel Unbonded Braces Subtask 5. 6- SAP 2000 Analysis for Un-bonded Braces: SAP2000 runs were made for Nippon Steel's un-bonded brace as a friction damper for both MDE and MCE level seismic events. Subtask 8. 3 - Design Review of Un-bonded Braces: This subtask covers the additional work involved in assessing the applicability and economics of using Nippon Steel's un-bonded braces relative to other alternatives. Supply and installation costs, and life cycle costs were compared for over four different design alternatives. Acres met on four occasions with Nippon Steel representatives to discuss cost and technical performance of their brace system. One site visit was made with Nippon representatives to familiarize them with the existing conditions. 2. Tower Intake and Sluice Gate Upgrades Subtask 9.4a & 9.4b - Ninety Percent Gate Upgrades Design Submittal: Prepare 90% level design drawings and specifications for intake and sluice gate upgrades according to the City's requirements. Subtask design activities are outlined below. (Note: "a" -- intake gate scope, "b" = sluice gate scope.) 9.4.1a & 9.4.1b - Stem Design: Design stem with A316 stainless steel. Confirm 2 IA inch stem diameter is sufficient. Design improved stem connection to intake and sluice gate. 9.4.2a & 9.4.2b - Stem Bushing Design: Design bronze bushing with steel housing to fit existing stem brackets. Stem bracket as-built dimensions assumed provided by the City. 9.4.3a & 9.4.3b - Stem Bracket: Analyze existing stem brackets and stem bracket anchors. Based on analysis, recommend use or replacement of stem bracket. Design new stem brackets either as replacements or spares. 9.4.4a & 9.4.4b - Stem Operator: Review Rodney Hunt stem operator information and select model appropriate for replacing the existing operators. Confirm that new stem operator will fit intake dimensions and hoisting requirements. 9.4.5a & 9.4.5b - 90% Drawings: Assume two additional drawings required. 9. 4. 6a & 9.4. 6b - 90% Specifications: Assume additional sections required to cover underwater construction, stem operator procurement, steel fabrication for stems, stem brackets, and bushings. Subtask 9.5a & 9.5b - Ninety Percent Design Review of Gate Upgrades: Facilitate City's review of 90% level design of the intake and sluice gate upgrades. Document design changes required by the City. Coordinate an internal Acres review of 90% design documents. Subtask 9. 6a & 9. 6b - Final Design for Gate Upgrades: Compete final contract documents incorporating results from the City's and Acres internal review. ~ · Subtask 9. 7a & 9. 7b - Construction Cost Estimate for Gate Upgrades: Prepare a construction cost estimate for supply and installation of intake upgrades. Subtask 11.5a & I 1.5b - Construction Engineering Support for Gate Upgrades: Review shop drawings and construction plans. Exhibit F -Casad Dam Intake Tower Seismic Upgrade Table lA - Summary of Estimated Costs for Additional Work Item Amount Direct Labor $11,086 Indirect Labor (1) $18,624 Total Labor Cost $29,71 Profit (2) ........................... $3,565__. $ 3z5_6~ Direct Expense_s (3) C_o_ntingency ................. $1,500 Total: $35,275 Table lB - Amendment Summary by Category of Additional Work Total Labor Category of Additional Work Subtask(s) Labor Cost Cost Expenses 1. prOject Management_.Exte_ns_ion ' ~.-4 - - $2,~297 - - $6,156 ' $200 ; SAP 2000 An__a!y_s_!_s- ............... _5:.6. _$~86_2 .... $2,309 -Desi~_n_ Review of Unbonded Braces 8.3 $3,306 __ $8,861 ................. Subtotal: $4,168 $11,170 3. ToWer i~a~~ G~t~-U~grades - Construction En~. Support (Shojp_D__r.~_w_!n~gs) 11:5_a ~ $328 $879 . $50 Subtotal: $3,193 $8,557 $200 ~,. Tower Sluice Gate upgrade_s. ........................... · ~ - Design ............. 9.4b__- 9.~7b_ __ $1 ,_3_19 $__3.,_,53_4 _ . . _$60_ .. - Cgnst_r~ction Eng. Support (S_h0j3_.D_[a_w_ings) 11.5b $109 $293 $40 .............. Subtot_al_.'_ $1,42_8 ....... $3,827 ....... $_!~0_ Amendment Totals: $11,086 $29,710 $500 Notes: 1. Based on 168% of Acres Direct Labor. 2. Based on additional 12% of Acres Total Labor Cost. 3. Expenses based on actual cost for disbursements. 4. Based on 268% of Acres Direct Labor. PROFESSIONAL SERVICES AGREEMENT CITY OF BREMERTON - CASAD DAM INTAKE TOWER SIESMIC UPGRADE PREDESIGN, DESIGN, AND BID SUPPORT SERVICES ACRES INTERNATIONAL CORPORATION THIS AGREEMENT is between the City ofBremerton, a municipal corporation (hereinafter referred to as "City" and "Owner") and Acres International Corporation (hereinafter referred to as "Consultant"). WITNESSETH: 1. SCOPE: Consultant agrees to provide engineering services for the predesign, design, and bid support services of the Casad Dam Intake Tower Seismic Upgrade, as further described in the Scope of Work, attached hereto and incorporated herein by this reference as Exhibit "A" (Scope of Work). 2. TERM: Contract shall commence on the date of this agreement and will terminate on December 31, 2002, unless otherwise extended by the City. 3. COMPENSATION: City shall pay Consultant compensation as follows: Total compensation (Cost and Fixed Fee) under this Agreement sh~ll not exceed $152,178.00. Charges for services shall conform to the fee schedule attached hereto and incorporated herein as Exhibit "B". Consultant shall submit regular statements descn'bing the services rendered with a breakdown for work completed as authorized under this Agreement. The City, upon receipt of the completed statement, shall promptly process said invoice for payment. The undisputed mount of said invoice shall be paid within 30 days of receipt. Additional services which may be requested by the City will be paid for by the City at the rates set forth in Exhibit B, which sum may exceed the "not to exceed" amount set forth above. However, said services will only be performed, and compensated by the City after the City has directed such performance in writing. 4. RELATIONSHIP OF PARTIES: The parties understand and agree that Consultant is a firm skilled in matters pertaining to Civil Engineering and will perform independent functions and respons~ilities in the area of its particular field of expertise. Consultant and its personnel shall act as independent contractors and not employees of the City. As such they have no authority to bind neither the City or control employees of the City, contractors, or other entities. Within the PROFESSIONAL SERVICES AGREEMENT -1- Acres International Corpozation- January 16, 2002 performance of these duties, Consultant shall work under the direction of the Director of Public Works & Utilities. 5. INDUSTRIAL INSURANCE: Consultant agrees to provide for State industrial insurance coverage for its personnel as required by State law. 6. LICENSE AND TAXES: Consultant shall possess a current City of Bremerton Business License and any regulatory license required to fi~lfill Consukant's obligations under this Agreement. B & O taxes shall be paid when due. 7. INSURANCE AND HOLD HARMLESS: Consultant shall provide professional liability or errors and omissions insurance orS1,000,000 per claim and in aggregate and commercial general liability insurance, including bodily injury and property damage, of at least $1,000,000 per occurrence. The City shall be named an additional insured on the commercial general liability insurance policy. If such policy is written on a cla~raq made form, the retroactive date shall be prior to or coincident with the date of this Contract. The policy shall Kate that coverage is claims made, and state the retroactive date. If~ at any time, claims fi.om work performed by the Consultant outside of this contract, reduces the mount of insurance available for claims under this contract to au amount less than the minimum required coverage, the Consultant shall immediately purchase additional coverage to ensure the minimum required coverage is available for this contract. Claims made form coverage shall be maintained by the Consultant for a minimum of three years following the termination of this Contract, provided that such coverage is generally available at reasonable cost, and the Consultant shall annually provide the City with proof of renewal. If renewal of the claims made form of coverage becomes generally unavailable, or economically prokn'bkive, the Consultant shall purchase an extended reporting period ("tail") or execute another form of .guarantee acceptable to the City to assure financial responsibility for liability for services performed. Consultant shall, at all times, be responsible for the negligent or wrongful acts or failures to act of its personnel which occur or arise in any way out of the performance of tl:ds agreemem. Consultant agrees to indemnify and hold harmless the City, its appointed and elected officers and employees, from and against any andall liability, loss, costs, damage, and expense, including costs and reasonable attorney fees in defense thereof, because of actions, claims or lawsuits for damages resulting fi:om personal or bodily injury, including death at any time resulting therefi:om, sustained by any person or persons, and on account of damage to property, to the extent arising out of the negligent performance of this Agreement, if such injuries to persons or damage to property is due to the negligence of the Consultant, or its subcontractors, agents or assigns. This provision shall be inapplicable to the extent such damage or injury is caused by the negligence of the City. In no evem shall Consultant have any liability whatsoever to the City for the City's indirect or consequential damages, including, but not limited to, loss of water supply or profit. PROFESSIONAL SERVICES AGREEMENT -2- Acres International Corporation- January 16, 2002 30 The parties have specifically negotiated to provide that Consukant hold harmless, and indemnify the City for all claims, damages, and losses, including reasonable attorneys fees, arising ~om any claims of Consultant's employees for injuries covered by Title 51 RCW, and for which Consultant could not be held directly liable. 8. GENERAL CONDITIONS: a. Reports and Information - Consultant, at such times and in such forms as the City may require, shall furnish the City such reasonable periodic reports and documents as it may request pertaining to the work or services undertaken pursuant to thi.~ Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement. Consukant will maintain accounting records in accordance with generally accepted accounting principles and practices to substantiate all invoiced amounts. b. Entire Agreement - This Agreement constitutes the entire agreement between the parties and both parties acknowledge that there are no other agreements, written or oral, that have not been fully set forth in the text of this Agreement. There are attached hereto and incorporated by reference as part of this Agreement Exhibits "A, B, C, and D". c. Amendments - The parties hereby further agree that this Agreement cannot be amended or modified without the written concurrence of both parties. . d. Notices - Any notices required to be given by the City, to Consukant or by Consultant to the City shall be in writing and delivered to the parties at the following addresses: City of Bremerton City Clerk 239 Fourth St. Bremerton, WA 98337 Acres International Corp°~ation 150 Nickerson Street, Suite 310 Seattle, WA 908109 Attention: Mr. Robin G Charlwood e. Waiver - Failure to insist upon strict compliance with any terms, covenants or conditions of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinqms' hment of such right or power at any time be taken to be a waiver of any other breach. f. Compliance with State, Local and Federal Laws - Consultant agrees to exercise care and skill to comply with all applicable local, state and federal laws in performance of all services under this Agreement. g. Applicable Law; Venue - This Agreement shall be consUmed and interpreted in accordance with the laws of the State of Wasbin¢on and, in the event of dispute, the venue of any action brought PROFESSIONAL SERVICES AGREEMENT -3- Acres International Corporation- January 16, 2002 hereunder shall be in Kitsap County Superior Court. h. Attomey Fees - The substantially prevailing party in any litigation arising hereunder shall be entitled to ks reasonable attorney's fees and court costs, including appeals, if any. 9. NONDISCRIMINATION: Consultant shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status or disability, except employment actions based on a bona fide occupational qualification. 10. TERMINATION: This Agreement may be terminated by the City for convenience upon thirty (30) days' written notice to the other party, or for cause by either if the other party fails substantially to perform through no fault of the other and does not commence correction within five (5) days of written notice and diligently completes the correction thereafter. Upon such termination, City will be entitled to reports showing the status of all matters upon which Consultant is advising the City as of the effective date of termination. 11. STANDARD OF PERFORMANCE: The standard of care for all professional engineering and related services performed or furnished by Consultant under this Agreement will be the care and skill ordinarily used by members of Consukant's profession practicing under the same or similar circumstances at the same time and in the same locality. 12. CONSTRUCTION PROCEDURES: Not Applicable (No construgtion procedures are directly associated with this project). 13. RE-USE OF DOCUMENTS: All documents, including all reports, drawings, specifications, computer soitware or other items prepared or furnished by Consultant pursuant to this Agreement, are instruments of service with respect to the project and are property of the City. The format for documents and work products shall be as specified in the exhibits. PROFESSIONTkL SERVICES ~GREEMENT -4- Acres International Corporation- Jannary 16t 2002 EN WITNESS WHEREOF the parties hereto have executed this Agreement the date and year indicated. ROBEN G. CHARLWOOD, Vice ?residem BY: CARY BOZE~, l~ka~o r W. Eugdne~Sampl~r of Public Works & Utilities APPROVE,D_ AS T · Loren D.~o~bs, I~t~rim City Attorney RECEIVED FOR FILI2qG: Kathleen L. McCluskey, Cityffl rk PROFESSIONAL SERVICES AGREEMENT- 5- Acres International Corporation - January 16, 2002 33 EXHIBIT A Casad Dam Intake Tower Seismic Upgrade Scope of Work Introduction This document represents the proposed Scope o£Work for the Casad Dam Intake Tower Seismic Upgrade. The main task groups proposed trader this contract are as follows: 1. Project Management 2. Review of Background MateTials 3. 'Site Seismi¢i~y Assessment 4. Tower Concrete Testing and Underwater Inspections 5. Dynamic Analysis 6. Preparation of Predesign Report and Basis of Design 7. Preparation of Fifty Percent Design Submittal 8. Design Review 9. Preparation of Contract Documents 10. Assistance during Bidding 11. Construct/on Engineering Services Exhibit C is the project schedule that ¢ives target dates for key deliverables and milestones. Exhibit B ~ves the estimated cost for~this work The scope of work includes input from: 1) Eric Kollgaard on review of design and construction'concepts, 2) )mil Chopra on review of dynamic analyses, and 3) Bill Perkins, Shannon and Wilson on seismiciry. Task Descriptions 1. Project Management Pm-pose and Objectives: · Management of the project, planning, coordination and reporting. Tasks: 1.1 Projec~ technical dkrection; coordination and management for design phase 1.2 Coordination during bidding and consWuction phase 1.3 Coordinate meetings with the CiD' of Bremerton. Assume 4 meetings Deliverables / Milestones: · Progress Reports: On a monthly basis these reports will include total labor hours, sub- consultant costs, expenses, and an est/mated percent completion. · Meetings: A total of 4 meetings are planned with the City. Attendance and meeting minutes will be prepared and submitted to the City. 2. Review of Background Materials Pu¢ose and Objectives: · Review original design basis and construction records from previous investigations and studies as background to develop repair alternatives. · Investigate permit requirements. Task: 2.1 2.2 2.3 2.4 Review work previous consultants and parametric study completed as part of the Acres proposal. Assess value of seismic dampers and their potential hastallat/on underwater. Review constructabiliry of proposed concepts Identify all permits which must be obtained prior to construction. Deliverables / Milestones: · Telephone logs, meet/rig minutes and prodhct/n_format/on sheets. 3. Site Seismicity Assessment Purpose and Obj ecfives: · Assess regional seismicity and recommend Maximum Design Earthquake ('MDB). Operating Basis Earthquake (OBE), and Maximum Credible Earthquake (MCE) to be used in the/ntake seismic upgrades Tasks: 3.1 3.2 3.3 Review recomm~ndations made by previous consultants. Assess regional seisrrficity and recommend OBE and/vIDE for design. Select recommended time histories and response spectra. One time hist°~ set will be selected for the OBE and two time h/story sets will be selected for the MDE. Reference Attachment 1 to Exh/bit A for a derailed description of Shannon & Wilson's sco. pe for performing this work Deliverables / Milestones: · Meet with City to discuss optipns for basis of design. · Letter report summarizing recommended seismic design basis. 4. Tower Concrete Testing and Underwater Inspections Purpose and Objectives: · Contract with concrete testing organization and coordinate removal of representative core samples and have compression strengths taken. · Obtain representative concrete compressive strengths based on compressive testing of core samples. · Contract with diving subcontractor and complete a one day underwater ingpecfion of the intake tower and document results. $5 Tasks: 4.1 4.2 Retain a qualified mater/als testing organization and coordinate coring and testing of a minimum of three concrete samples. Samples will be taken by coring vertically from the top of the tower. Prior to taking core samples take Schmidt hammer readings at each coring location. Retain a qualified diving contactor and coordinate performance of a one day underwater inspection of the intake tower. Arrange for video and audio take documentation of the underwater inspection. Tie all observations to elevation and plan position. Provide written inspection report. Deliverables / Milestones · Tower Concrete Test and Underwater Inspection Report 5. Dynamic Analysis Purpose and Objectives: · Check extent of damage to tower under OBE and/vrDE. · Investigate design of bracing concepts including dampers · Develop design loads for bracing and dampers · Check local impact of bracing on arch dam crest Tasks: 5.1 Dynarrdc analysis of intake tower and coupling to arch dam as is to check capacity and establish seismic ground motion time histohes at tower and brace attachment points 5.2 Analyses ofvar/ous bracing concurs includ/ng structural frames, frames with viscous or friction dampers 5.3 Stress check on arch dam at brac/ng contact points Deliverables / .Milestones · Dynamic Analysis Results 6. Pre-design Report and Basis of Design Purpose and Objectives: Based on regional seismicity, site cond?ions, dynarrfic analysis and consultation w/th. the City and Acres team members and external consultants select tower stabilization approach and basis of design. Tasks: 6.1 ReView alternatives m light ofrew~ew of background materials and site seismicity. 6.2 Compare upgrade alternatives and their effectives expanding on the parameWic studies presented in Acres proposal. Evaluate alternatives based on effectiveness ofrepa/r, long term maintenance requirements, ease of consmuction and life cycle cost. Choose favored alternative and document rationale for selection. 6.3 Prepare preliminary construction and cost estimate for selected alternative. 6.4 Promde basis for review and acceptance by City and external review consultants Eric Kollgaard, and A_nil Chopra as basis to pro:ced to detailed design. Eric will be available for overall re¼ew of the results of the analyses and design, and constructability of proposed remedial measures. Professor Chopra will assist with methods of seismic analysis and review oft_he results. Don Anderson, an Earthquake Engineering Specialist, will assist in dynam/c analyses of the tower and assessments of its seismic capacity. Deliverables / Milestones. · Pre-design Report: Document tower stabilization alternatives and rational far selected alternative. Include preliminary construction cost estimate and construction schedule for the selected alternative. · Basis of Design: Prepare basis of design giving design criteria necessary for completing fifty percent.level design documents. · 'Review Meeiing Notes: Prepare rexfiew meeting notes with recommendations and conclusions. 7. Fifty Percent Design Purpose and Objectives: · Develop 50% level design and consUmction plan for selected concept in accordance with Exhibit D Tasks: 7.1 7.2 7.3 7.4 Prepare 50% percent level design &~aw/ngs. Prepare outline specifications with notes on specific material to be prese'n.~d. ' Prepare construct/on plan-and preliminary cost estimate, Include prelim/nm'y construction schedule. Prepare Project Report for Department of Health. Deliverables / Milestones: · Fifty percent level design drawings and ouflhue specification. · Preliminary construction plan and cost estimate, 8. Desigm Review Purpose and Objectives: · Rev/ew by City of 50% design. Tasks: 8.1 8.2 Update basis of desig-n to incorporate rev/ew comments by the City and Acres team. Incorporate V2 size drawings from fifty percent design submittal showing the selected upgrade concept. 3-7 9. Ninety Percent Design / Final Bid Documents Purpose and Objectives: · Prepare 90% and final design and con¢act documents for supply and instalhtion of seismic upgrades in accordance with the Basis of Design and 50% design r~view comments in accordance w/th Exhibit D. Tasks: 9.1 9.2 9.3 9.4 Prepare 90% level design drawings and specifications. Specifications to include all sections including in Section 0 and Section 1 according to the City's requirements. Coordinate review of 90% level design documents. Prepare bid documents, final design drawings and specifications. Prepare engineer's construction cost estimate and schedule. Deliverables / Milestones: · Ninety percent level design drawings and specifications. · Documentation of review comments and r~commended design changes. · Finalized contact documents. · Engineer's Estimate and Schedule 10. Assistance during Bidding Purpose and Objectives: · Provide engineering support during bidding. Task: 10.1. 10.2 10.3 10.4 Respond to bidder questions in coordination with the City. Document all requests for information (R.FI) and responses provided by Acres. Assist the City in preparation of addendums to the bid documents. Assist City with review of bids. Deliverables / Milestones: · Documentation of all RFI and responses provided by Acres. 11. Construction Engineering Services Purpose and Objectives: · Provide engineering support during construction of seismic upgrades. · Provide as built drawings Tasks: 11.1 11.2 11.3 11.4 Review shop drawings and construction plans. In coordination '~dth the Ci~ conduct up to eight site inspections. Document results of site inspections. Prepare as built drawings. Deliverables / Milestones: · Site inspection reports and recommendations. · As built drawings. --IilSHANNON VVILSON, INC. ~ GEOT£~HNICAL AND ENVIRONMENTAL CONSULTANTS EXHmIT A ATTAChqMENT 1 PROJECT UNDERST.4~NDING .~ND BACKGROU-Nq3 Task 3 - Site Seismicity Assessment We understand that the intake tower seismic upgrade desi~ will be based on the follov, dng two ground motion levels: OBE - Operating Basis Earthquake, defined as ground motions with a t0 percent chance of exceedance in 50 years (probabilistic ground motion). lvlZ)E - Maximum Desi~ Earthquake, de£med as the max/mum credible earthquake that could affect the site (deterministic ground motion). We understand that the performance criteria for the tower for these events have not yet been determined. Prev/ous seismic analyses of the dam and intake tower considered sim/lar risk levels. In the 1994 study, time h/story analyses were conducted w/th gound motions scaled to peak ground accelgrafions or 0.35g and 0.Sg, corresponding to OBE and MDE ground tacticTM, respectively. The MDE ground motion was from rupture on the Seattle Fault. There is no indication that time histories were modified (other than scaling to the peak ground acceleration) to match a design rock spectrum. In the 1996 study, peak ground accelerations of 0.3g and 0.5g wee*used to characterize the OBE and IvlDE, respectively. Rock spectra were also developed with th. ese peak wound accelerations and were used in d)mamic, three-dimensional, 5_rfite element, response spectrum analyses. It does not appear that a time-history analysis was conducte& Since 1996, the results of regional pro¢abilistic ground motion studies have been'published and significant findings have been made regarding the activity and location of various potentially seismogenic structures in the Puget Sound region, including the Seattle Fault. The spectra for both the ODE and IVfDE should be revised to be consistent with these newer studies and findings. The U.S. Geological Survey (USGS) published in 1996 the results of a regional probabilistic ground motion study that incorporated the USGS's understanding of the seismogenic potential of the area at that time. The results of that study were apparently not available to Dames & Moore for their 1996 report on the intake tower. Since pubticat/on of the USGS study, Shannon & Wilson has incorporated the results of additional research into our geologic/seismolo~cal models for more recent ground motion studies for other projects in the area. The peak ground acce]eration for the OBE used in the 1996 dam intake tower study is similar to the results of the more recent, probabilistic ~ound motion studies. However, in our opinion, a more current OBE spectrum can be obtained directly from the spectral ordinates from the USGS study. In our opinion, the MDE spectrum should be revised based on the results of recently published research on the Seattle Fault. Specifically, research by the USGS in 1999 has re-characterized the Seattle Fault as an approximately 2 V2- to 4-m/lc-wide (north-south) zone of multiple faults or splays (see Figure 1). As shown on Figure 1, the nearest mapped splay from this ~-~cudy is located about 5 m/les north of the site. As a result, the fault is sigrfificantly closer to the site than reflected in the MDE spectra provided in 1996. Furthermore, as shown on FigTM 1, the splay farthest to the south is not mapped as continuing west to directly north of the site. This map is based on marine seismic work (i.e., detection of faults beneath navigable water), and the fault splays could continue to the west and closer to the site (e.g., to within about 2 V= m/les of the site). SCOPE OF WORK Task 3 - Site Seismicity Assessment ODE and MI)E Spectra Shannon & Wilson will develop free-field ~ound motion spectra for rock condif~ons for both the ODE and the MDE. The ODE horizontal ~ound motion spectrum will be derived largely from the published USGS re~onal probabilistic ~ound motion study. The MDE spectrum w/il be developed for movement on the Seattle Fault. In developing the MDE spec=a, the possibility of the southernmost splay extending an additional 6 m/les west to a distance of approximately 2 V: m/Ie's north of the site will evaluated. We will discuss the results of this evaluation w/th Acres and also, ifrequ/red, the City of Bremerton. Aher that discussion and their review, we Mil prepare the final MDE spectra. We will also be. develop ve,~cal spectra-for bo~ the MDE and ODE. Earthquake Time Histories Shannon & Wilson will develop free-field earthquake ground motion time h/stories for both the ODE and M2DE. In our previous proP.0, sal of September 7, 2001, we had proposed to .develop six time history sets; 'three sets for each design level. At your request, we have revised the number of time histories. Our rev/seal scope of work will include development of three time-h/story sets; one set for the ODE and two sets for the MDE. Each time history set will include two, orthogonal horizontal motions and one vertical motion. Recorded earthquake time histories will be selected to be as consistent as practical with earthquake magnitude, fault type and distance characteristic of the ODE and !vI2DE and site conditions (i.e. rock conditions). These recorded earthquake time histories will be modified to closely match the ODE and/vIDE spectra and will be scaled to be consistent with earthquake time-history requirements provided in the 1997 Un/form Building Code (UBC). That is, the average of the square root of*he sum of the squares of the spectra of the two horizontal components will be equal to or greater than 1.4 times appropriate ODE or/vIDE spectra over the period range of interest for the intake tower. Report A letter report will be prepared that will include the spectra and a description of the methods and assumptions in their development. Digital versions of the time history sets will be/ncluded with the report, along with a description of the methods and assumptions in selection and development of the time histories. EXHIBIT B CITY OF BREMERTON CASAD DAM INTAKE TOWER SEISMIC UPGRADE COMPENSATION Compensation for Consultant's services under this Contract shall be on a Cost Plus Fixed Fee basis but not to exceed the Total Price. The Total Price is the sum of Cost and Fixed Fee plus Contingency and shall be the compensation for the Scope of Services as shown in Table 1. The estimated staffhours budget for this project is as shown in Table 2. Cost shall include Direct Labor Cost, Indirect Costs, and Reimbursable Expenses. Cost shall be an amount equal to Direct Labor Cost'times a factor of 2.68 plus Reimbursable Expenses. Direct Labor Cost shall mean salaries and wages, (basic and overtime) paid to all personnel for time worked directly on the project. Indirect Costs shall include overhead, taxes and other indirect project administrative costs. Contingency is an allowance to cover unforeseen costs. Fixed Fee shall mean a fixed amount of fee that is added to the Cost. The Fixed Fee for all tasks included in the Scope of Services shall be at a rate of twelve percent (12%) on the Cost excluding Reimbursable Expenses; The Cost may vary, but the 1:ixea Fee shall remain the same provided the Scope of Services does not change. The fi.xed fee will be prorated and paid monthly in proportion to the project work satisfactorily compl'eted. A payment for an individual month shall include that portion of the fixed fee allocable to the project work satisfactorily completed during the month and not previously paid (e.g. pro-rated in accordance with the arr~.gunt spent-to-date). Any portion of the fixed fee not previously paid in the monthly payments shall be included in the final payment. Compensation Schedule Reimbursable Expenses shall mean the actual expenses incurred directly or indirectly in connection with the proj oct for transportation travel, subconsultants, subcontractors, computer usage, telephone, fax, skipping and express, and other incurred expense. Charges for reimbursable expenses incurred by the Consultant are estimated in Table 3 and will be at the following rates as shown in Table 4. The amount of any sales tax, Acres International Corporation 1 26 September 2001 excise tax, or gross receipts tax that may be imposed on this Agreement shall be added to the Consultant's compensation as Reimbursable Expenses. Table 4. Reimbursable Expense Charge Rates Item Billing Rate Travel Associated Project Costs (APC)~ Mileage at 34.5_cents per rmle or the current Internal Revenue Service (IRS) allowable rate for business use of an automobile Other travel expenses at cost included Computer included 1. Associated project costs include tetecommurdcarions, FAX transmittals, in-house r~production and plotting, postage, and computer (PC). Monthly invoices shall be submitted to the City for work performed subsequent to work covered by all previously submitted invoices and shall be computed pursuant to the rates. and limitations set forth above. The labor rates listed in Table 2 are representative of the actual rates that might apply during the term of th.is Agreement. Billings will be based on the individual labor rates current at the time the serv/ces being billed for were performed. Labo. r rates are subject to change without notice. Acres .International will notify the City of labor rate changes 30 days before submitting an affected invoice. Labor rate changes shall not alter the stipulated "not to exceed" amount or 5xed fee. The multiplier on Direct Cost to arrive at Cost shall be fixed for the t~rm of this Agreement. Acres ;nternationaI Corporation 2 26 September 2001 City of Bremerton Casad Dam - Engineering Services Exhibit B TABLE 1 - SUMMARY OF ESTIMATED COSTS ~ Amount Item $39,698 ' Direct Labor Indirect Labor (1) $66,693 Total LabOr Cost $106,391 Profit(2) $12,766,97 $12,767 Direct Expenses (3) $23,700 Contingency $10,000 Total: ~ ~ Based on 168% of Acres Direct Labor Base on 12% of Total Labor Cost Based on actual cost for disbursments and sub-consultants to Acres Casad =_xh B Cost Est(jhr)_091301 City of Bremerton Casad Dam - Engineering Services EXHIBIT B TABLE 3 - DISBURSEMENTS ESTIMATE ~ ReCe,v ~f Background k~aledals $10 S3O~ $30 ~ S7~ 3 ~Sile Se~mici~ k~ment ] $1,500 4 'Tour ~te T~ng and Inve~ga~on $1O t S3O S6C J s3.800 $5,40c 5 3yn~ic Analys~ ~ =r~Des~n Re~ and a~ of ~D~ [7 ~i~ Pe~nt Desert I ~ Desert Revi~ · , ' Nine~ Pe.nt Re. and F~a' Do~en~ ,80[ 10 As~mn~ Dunng ~ C~tneedn ~s T~i Acres Disbumements Pro~ect k~anagernent Review of Background Matedats Site Seismic'it'/~men! Tower Concrete Te. sting and Investiga~n Dynamic AnalysiS Pre-Design Report and Ba~s of Design Fifty Percent Design Design. Review 4inety Percent Review and Final Docments kssislance During Bidding $'~0 I s3ol $301 I i $20u - ~onslnJction EnQinesdnci serwces Total Acres Disbursements Ca. sad Exh B Cost Est0hr)_091301 AGENDA BILL BREMERTON CITY COUNCIL I. SUBJECT: Public Hearing Resolution # .. a '~k~ ?i~ , regarding recovery of fees for the abatement of garbage and debris on the property located at 1906 N. WycoffAvenue. FOR AGENDA OF: December lit 2002 ORIGINATING DEPT.: Fire Dept. ORIGINATOR: Al Duke DATE SUBMITTED: 2. CLEARANCES:, (Comment on back if 3. EXHIBITS: Fire Chief: / ~~i~2, .... ~ a ~, ..... t' ~,~ ~-~' _ ~ ~ ~. ~esolution ~ ,.~ O ~ L~W cle~k~~~ ~ [ ~),{, ~ 2. Clerk Report ~----- CiW A 3. Photos MAYOR~~L~~~ ~~ C~IL PRESIDENT ~ ~ 4. SUMMARY STATEMEN~ AND REQUI~MENT FOR COUNCIL ACTION' On October 11, 2002, Public Wor~ ~moved garbage and debris from the prope~ Dcated at 19~ N. Wycoff Avenue after the owne~ of ~co~, Homeside Lending, Inc. failed to do so as ordered The legal requi~ments for notice were met. The cost of this action, including administ~tive fees, totaled $902.44. Council must now decide if the f~s are just and reachable and how they should be collated. RECOMMENDATION: I move that Council, by Resolution # ..~ ~ D , order that the fees in the. amount of $902.44 incurred for the abatement of garbage and debris located at 1906 N. Wycoff Avenue be collected as reasonable abatement costs and become a lien against the property. 9. RESPONSIBLE OFFICIAL: .Al Duke ENFORCEMENT OFFICIAL: A! Duke EXPIRATION DATE: N/A REVIEW DATE: N/A 10. NOTICE OF ACTION PULLED TABLED COUNCIL DIRECTIVE: APPROVED DISAPPROVEDDATE:AMEN~ 11. AGENDA BILL NO.: 2. CLEARANCE COMMENTS: IMPACT OF NON-PASSAGE: The City would forfeit the costs incurred for this action. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES, The City's revolving abatement fund would suffer the deficit of not collecting these funds. 0 RESEARCH SOURCES: N/A RESOLUTION # A RESOLUTION of the City Council of the City of Bremerton, Washington, reviewing charges for the abatement of garbage and debris on the property at 1906 N. Wycoff Avenue and determining means of collection. WHEREAS, the City of Bremerton incurred costs for removal of garbage and debris on the property located at 1906 N. WyeoffAvenue; and WHEREAS, the Bremerton Municipal Code allows the City to recoup these costs either by personal judgmem against the property owner or as a lien against the property; and WHEREAS, the City Council is charged with determining whether the fees are just, and how they should be collected; and has considered the report of charges filed by the Building Official and any protests or objection filed; and WHEREAS, the Building Official of the City of Bremerton recommends the fees be collected as a lien against the property located at 1906 N. Wycoff Avenue, now, therefore, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the abatement charges included in the report of the Building Official in the amount of $902.44 for the property located at 1906 N. WycoffAvenue, Bremerton, attached hereto, are just and reasonable. SECTION2. That the City of Bremerton will exercise its right to recapture abatement fees by filing a lien against the property. SECTION3. Severabili~.. If any one or more sections, subsections or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 4. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. 20 PASSED, by the City Council of the City of Brernerton this day of APPROVED AS TO FORM: CAROL ARENDS, Council Presidem ATTEST: ROGER A. LUBOVICH, City Attorney KATHLEEN MCCLUSKEY, City Clerk BREMERTON FIRE DEPARTMENT 817 Pacific Avenue · Bremerton, WA 98337 * (360) 478-5380 * FAX (360) 478-7257 November 7, 2002 Memo To: From: CC: Re: Paula Johnston, Deputy City Clerk Janet Lunceford, BDS II ..~/~ Al Duke, Chief 1906 N. WycoffAvenue On October 11, 2002, Public Works removed garbage and debris from the property located at 1906 N. WycoffAvenue atter the owner, Homeside Lending, Inc., failed to do so as ordered. The costs incurred for this action, per the attached interfund transfer and including the administrative fee, totaled $902.44. I have scheduled a public hearing for December 11, 2002 for Council to decide how the fees should be collected. CITY OF BREMERTON INTERFUND TRANSFER CITY DEPARTMENTS ONLY DATE 11/05/2002 TRANSFER# 10244 TO COMPLETE THIS FORM IN DUPLICATE AND RETURN TO ACCOUNTS PAYABLE Fire Department (Fund 108) PWO-STREET DIVISION FROM Abatements/Demolitions (REVENUE DEPARTMENT) (EXPENDITURE DEPARTMENT) DESCRIPTION TOTAL Charges per attached summary for: October 2002 LABOR EQUIPMENT MATERIALS SALES TAX TOTAL BLAB $170.00 $68.00 $28.44 $0.00 $266.44 ACCOUNT 42-349.3900 AMOUNT $266.44 ACCOUNT /' AMOUNT 5S (Sign Here) ~~~" EXPENDITURE DEPARI[I'MENT SUPERVISOR Billin~ Details 11/05/2002 12:3 6:14 PM CITY OF BREMERTON Customer: BLAB Fire Department (Fund 108) - Abatements/Demolitions Date ID Numbers Description 10/11/02 SD520069 0524 3090 1712 3078 1904 3019 1842 10/15/02 SD520069 1842 3078 OVTS OVTSWG 522587 BLAB-Haul trash from 1906 Wycoff. Colen Corey 1997 Chevrolet C2500 4x4 John Corey IV '95 1-TON CHEVY Jim Iovinelli 2002 John Deere Backhoe 310SG L. Dean Westcott 522599 BLAB-Haul trash from 1906 Wycoff. L. Dean Westcott '95 1-TON CHEVY Olympic View Transfer Station Dump Whitegoods at Olympic View Trans. St 1.00 hr 1.00 hr 1.00 hr 1.00 hr 1.00 hr 1.00 hr 1.00 hr 1.00 hr 1.00 hr .20 tn 1.00 ea Page PWO-STREET DIVISIO __._.__Q~time Cosl $34.0C $5.00 $34.00 $9.00 $34.00 $45.00 $34.00 $34.00 $9.00 $11.94 $16.50 $266.44 AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: PUBLIC HEARING VACATING A PORTION OF SECOND STREET, EAST OF WASHINGTON AVENUE. FOR AGENDA OF: December 11, 2002 ORIGINATING DEPT: PW&U Engineering Division ORIGINATOR Michael C Mecham, CitY Engineer DATE SUBMITTED: December 4, 2002 / /W? 2. CLEARANCES: (comment on bac,l,k'i~fi~s~)~ ,-) 3. EXHIBITS Director, Public Works/Utilities :, //~-~ ~ Engineering ~affReport. City Attorney ~ >,~ "~~~:~lte Map. Director, Community Developmen ' "iL! ' Cc'5 [i; /' CouncilBudget & Fin~ce Co~i~ee O[CE~B[R" 3, 2002 ~erations Co~i~ee DECEMBER 3, 2002 ENDORSE~!;ti~~ INFORMATION MAYOR(..-.---~?/,.-~ "- APPROVED BY COUNCIL PRESIDENT FOR SUBMITT, cou cmPP Sn NT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City has initiated the vacation of a portion of Second Street east of Washington Avenue. A hearing date of December 11, 2002 was set by the City Council on November 20, 2002. Posting of the hearing notices has been completed in accordance with state law and the Bremerton Municipal Code. The vacated area will be incorporated into the abutting City owned property to provide a site compatible with usage for downtown redevelopment. Functionality of Second Street as a transportation facility will not be significantly affected. Access to the waterfront will not be impeded with this vacation. This is a Class II right-of-way and compensation is not required in accordance with BMC 11.20.080. RECOMMENDATION: MOVE TO DIRECT THE CITY ATTORNEY TO PREPARE AN ORDINANCE SECOND STREET, EAST OF ~A~HINGTON AVENUE AS PROPOSED. TO VACATE A PORTION OF 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: City Engineer N/A PULLED COUNCIL DIRECTIVE TABLED 10. APPROVED NOTICE OF ACTION ~~ DISAPPROVED~A~ __ DATE: 11. AGENDA BILL NO: 0~ - ~ 7 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: Not applicable, public input only. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of- Way RCW 35. 79 Streets ab\Vacations\City 2nd Street\Agenda Bill - Public Hearing STREET VACATION REQUEST SECOND STREET ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE: December 11, 2002 PREPARED BY: Gunnar Fridriksson SUMMARY A. Applicants: City of Bremerton 3027 Olympus Drive Bremerton, WA 98310 Location: A portion of Second Street east of the intersection of Washington Avenue and Second Street. B. Attachment: Vacation Map BACKGROUND The City of Bremerton has initiated the vacation process to vacate a portion of Second Street east of Washington Avenue. This will be incorporated into the abutting City owned property to provide a site compatible with usage for the downtown redevelopment as approved by the City Council. Access to the waterfront will not be impeded with this partial vacation. RIGHT OF WAY CONDITIONS · Functional Classification Local Access · Existing R-O-W Width 60 feet · Proposed R-O-W Width 50 feet · Pavement Width 44 feet · Surface Type Asphalt · Curb and Gutter Both sides · Sidewalks Both sides HEARING CONSIDERATIONS BMC 11.20.120 sets forth issues that the City Council needs to determine at the conclusion of the Vacation Heating. These issues and the staff position are: November 6, 2002 Second Street Vacation Page 1 of 3 0 o Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: Public usc of this portion of Second Street is not affected. Whether the vacation is consistent with the City Comprehensive Plan. Staff Position: The proposed vacation docs not conflict with the Comprehensive Plan. Whether continued use of the proposed vacation as a public way is not of such public benefit as to justify the costs of maintenance. Staff Position: Existing street and sidewalks are in fair to poor condition. The vacation will allow for reconstruction of thc street with new asphalt, curbs and gutters, and sidewalks, to be compatible with adjacent development. Whether substitution of a new and different thoroughfare would be more useful to the public. Staff Position: No other thoroughfare would improve circulation in this area. Whether conditions may so change in the future as to provide a greater public use or need than presently exists. Staff Position: Public use of this portion of Second Street is not affected. Whether objections to the proposed vacation are made by owners of private property abutting the same. Staff Position: No objections have been received from any abutting property owners to date. November 6, 2002 Second Street Vacation Page 2 of 3 SHORELINE ACCESS This portion of fight-of-way does provide shoreline access. Pursuant to RCW 35.79.035 and BMC 11.20.090, the proposed vacation will better serve the public good by enabling the redevelopment of the site, and provides comparable public access to the same shoreline area UTILITIES All private utility companies have been contacted. An casement for Puget Sound Energy, Cascade Gas, and Qwcst will bc required. SUFFICIENCY OF SIGNATURES N/A. This is a City initiated vacation of right-of-way. COMPENSATION N/^ STAFF COMMENTS No objections were noted from Police, Fire, Engineering, City Attorney or Community Development staff. Staff recommends that this Street Vacation be approved as requested without modification. ab, 2nd Street Vacation, Staff Report for Public Hearing November 6, 2002 Second Street Vacation Page 3 of 3 1. SUBJECT: ORDINANCE NO. AMENDING THE FY 2002 BUDGET AGENDA BILL BREMERTON CITY COUNCIL FOR AGENDA OF: ORIGINATING DEPT: ORIGINATOR: DATE SUBMITTED: II Dec~,,4~, 2002 Finance Cathy ~Johnson Nov. 25, 2002 2 C ~ '~' '~? · LEARANCES: Co~m.e.~t~a c~f necessary) ~r~ 3. EXHIBITS: City Attorn Summary of Budget Adjustments Operations~~ ENDORS~_~_i ~__ __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4' SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: This amending ordinance will incorporate all of the changes to the budget which have been identified throughout 2002. Many of the changes are related to items that have been presented for Council's approval over the course of the year. Revenues received that are significantly greater than anticipated have been used to offset several expenditure items not included in the original appropriations. 8. RECOMMENDATION: .Me_!!on ~._ -.0 ~.p;cvc ~'-~.,,~ ,,rd ....... ~.,~r,~,in~ ~'~...v .~-v ..... opn,~ ~:~.3 c.t cn ~'-',,,o, Motion to pass Ordinance No.J~-~ amending the FY 2002 budget on second reading. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: Finance Director Mayor 12/~ 1/2002 N/A tENDE~ PULLED ~ TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED Arv 11. AGENDA BILL NO: ~-- 2.~) 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: the budget will not accurately reflect known changes in anticipated revenues and will lack expenditure authority for the identified project and tasks. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: As indicated on the attached documents. 7. RESEARCH SOURCES: ORDINANCE NO. q ~ 3 ~ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Ordinance No. 4746 as amended by Ordinance No. 4786 relating to the budget of the City of Bremerton for Fiscal Year 2002. THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 1 of Ordinance No. 4746 as amended by Ordinance No. 4786 is hereby amended as follows: That the biennial budget for the City of Bremerton, to wit: "Official Budget for the years 2001 and 2002, City of Bremerton", now on file in the office of the City Clerk of the City of Bremerton, be and the same is hereby approved and adopted, and the respective amounts provided for in said budget for the several funds of the City of Bremerton, be and the same are hereby fixed and adopted as follows: FUND DESCRIPTION 2001 MID-BIENNIUM 2002 ADJUSTMENT YEAR END 2002 ADJUSTMENT 001 General $26,483,015 .._e'~'*, .- -. .- ,c~'~ ~ -mn, ,.~ $28,951,553 101 Arterial Street 10,337,984 5,325,803 102 Street 2,158,250 2-rt4472-50 2,321,950 103 Contingency Reserve 875,000 ~-m.,~,.,v.,,.r~tm1,391,000 104 Civic Improvement 220,000 ~...,,...,.'~c~ arm 283,351 106 Community Development 2,871,000 3,736,000 108 Abatement Revolving Fund 119,000 4-34-500 409,500 109 Real Estate Excise Tax 945,000 1,480,000 110 Police Special Projects 249,500 287,500 112 Park Development 3,233,000 694-505 1,455,655 113 Bremerton Kitsap Access Television 178,450 193,450 114 Gift and Donation 56,850 37,625 115 Discretionary Reserve $1,079,414 201 BondFund 974,885 1,528,655 202 LID Guaranty 51,500 55,500 301 Conference Center 810,000 302 Public Safety Projects 13,101,000 401 Water Operating 11,904,063 -1-3x403;Ot-0 13,618,890 407 Municipal Golf Course 5,869,740 2,672,000 3,997,000 451 Wastewater Operations 21,997,754 ~ 24,223,027 481 Stormwater Operations 1,637,135 4x426rt--74 996,174 503 Risk Management 2,555,000 ..,v...,,,,,,,'~ ~ ~ cmr~ 2,713,000 510 Equipment Rental Service 3,876,711 4r4-59¢Xfl- 5,479,359 GRAND TOTAL ESTIMATED REVENUES & EXPENDITURES $96,593,837 $93,519,705 $113,475,406 1 2002 Budget Adjustment Of the total revenue for 2001, the sum of $5,769,748 is the estimated amount to be received from a $3.9443 levy per $1,000 of assessed valuation of all property within the city limits of the City of Bremerton as set forth in Ordinance No. 4727. Of the total revenue for 2002, the sum of $5,987,848 is the estimated amount to be received from a $3.95742 levy per $1,000 of assessed valuation of all property within the city limits of the City of Bremerton as set forth in Ordinance No. 4781. SECTION 2. Section 2 of Ordinance 4746 as amended by Ordinance No. 4786 is hereby amended as follows: That the separate totals set forth in Section 1, hereof for each of said funds, as particularly itemized in the "Official Budget for the years 2001 and 2002, City of Bremerton on file in the office of the City Clerk of the City of Bremerton, as amended by Ordinance No. 4786 and further as amended in Section 1 hereof, be and the same are hereby appropriated to each of said departments for the fiscal year 2001 and 2002. SECTION 3. Severabili_ty. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ., 2002 PASSED by the City Council the day of ,2002 CAROL ARENDS, Council President Approved this day of ,2002 CARY BOZEMAN, Mayor 2 2002 Budget Adjustment ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attomey PUBLISHED the EFFECTIVE the ORDINANCE NO. day of day of ,2002 ., 2002 R:\LEGAL\Ordinances~inance\02 amending budget.doc 3 2002 Budget Adjustment 2002 BUDGET AMENDING ORDINANCE 001 GENERAL 101 ARTERIAL STREET 102 STREET 103 CONTINGENCY RESERVE 104 CIVIC IMPROVEMENT 106 COMMUNITY DEVELOPMENT 108 ABATEMENT REVOLVING FUND 109 REAL ESTATE EXCISE TAX 110 POLICE SPECIAL PROJECTS 112 PARK DEVELOPMENT 113 BREMERTON KITSAP ACCESS TELEVISION 114 GIFT AND DONATION 115 DISCRETIONARY RESERVE 201 BOND FUND 202 LID GUARANTY 301 CONFERENCE CENTER 302 PUBLIC SAFETY PROJECTS 401 WATER OPERATING 407 MUNICIPAL GOLF COURSE 451 WASTEWATER OPERATING 481 STORMWATER OPERATING 503 RISK MANAGEMENT 510 EQUIPMENT RENTAL RESERVE TOTAL ALL FUNDS CURRENT 2002 BUDGET 27,936,729 5,325,803 2,141,250 92O,OO0 255,000 3,736,000 134,500 1,480,000 287,500 694,505 193,450 37,625 1,528,655 55,500 13,403,010 2,673,000 24,018,943 1,426,174 2,813,000 4,459,061 93,519,705 NET ADJUSTMENTS 1,014,824 180,700 471,000 28,351 275,000 761,150 1,079,414 810,000 13,101,000 215,880 1,324,000 204,084 (430,000) (lOO,OOO) 1,020,298 19,955,701 AMENDED BUDGET 28,951,553 5,325,803 2,321,950 1,391,000 283,351 3,736,000 409,500 1,480,000 287,500 1,455,655 193,450 37,625 1,079,414 1,528,655 55,500 810,000 13,101,000 13,618,890 3,997,000 24,223,027 996,174 2,713,000 5,479,359 113,475,406 CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: C~TER FUND Adjustment Number: EQUIPMENT RENTAL RESERVE FUND Approval Authority Required: F-]Treasurer I--]Mayor [-- Fiscal & Budget 2002 #1 SOURCE OF FUNDS: Description Cop~, ntion Center Fund: Increase Inter-Fund Loan Equipment Rental Reserve Fund: Decrease Ending Cash Amount 500,000 500,000 F~c°uncil USE OF FUNDS: Description AmOunt Increase Capital Increase Inter-Fund Loan 500,000 500,000 NARRATIVE: This adjustment will provide expenditure authority for an inter-fund loan from the Equipment Rental Reserve to the ~/~Co/on Center Fund providing interim financing for the initial part of the project. The adjustment also provides t~expenditure authority to begin work on the convention center project. It is anticipated that this initial financing of the project will later be replaced by external construction financing and ultimately by permanent bond financing. Department Head Signature Date Di rector Signature Date Treasurer Comments: r-~ Recommended Not Recommended Treasurer's Signature~ / DC:e / Mayor Comments: Recommended Approved ~ Not Recommended ~-~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Recommended Approved Not Recommended Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: COMMUNITY DEVELOPMENT Approval Authority Required: ~--~Treasurer ~ Mayor Adjustment Number: 2OO2 #2 SOURCE OF FUNDS: Description Reduce extra help NARRATIVE: Amount F 68,000 Fiscal & Budget USE OF FUNDS: Description r~Council Amount Add one Building Development Specialis~ll Positior 58,000 Upgrade one Plannerll Positionto Planning Mgr. 10,000 This adjustment will add one position to the Department of Community Development and upgrade another. Funding for thesechanges will come from existing appropriations for temporary personnel. An updated organization chart is attached. Department Head Signature Treasurer Corn ments: Date Director Signature Date [----] Recommended ~ Not Recommended --- ~ ~/~ Treasurer's ' _) D~te Mayor Comments: ~ Recommended ~ Not Recommended r-~ Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: ADMINISTRATIVE SERV. Approval Authority Required: r-iTreasurer r--~Mayor Adjustment Number: 2002 #3 SOURCE OF FUNDS: Description Amount r- Fiscal & Budget r~lC°uncil USE OF FUNDS: Description Amount NARRATIVE: This adjustment will amend Appendix A to the budget to increase the salary of the Municipal Court Judge. The increase will be funded from existing appropriations. The revised page to Appendix A is attached. Department Head Signature Date Director Signatu re Date Treasurer Comments: Recommended [~ Not Recommended Mayor Comments: Treasurer's Signature Dat~ Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved r-~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: PUBLIC ACCESS TELEVISION GENERAL MISC. Approval Authority Required: r-]Treasurer F'~Mayor Adjustment Number: 20O2 #4 SOURCE OF FUNDS: Description Public Access Television Fund: General Misc.: Increase Beginning Cash NARRATIVE: Amount F 16,050 Fiscal & Budget ~-~Co~uncil .USE OF FUNDS: Description Amount Add Public Access Manager position .75 FTE funded from current appropriations. $48,200 Add Public Access Manager position .25 FTE $16,05C This adjustment will add the position of Public Access Manager to the Appendix A to the Budget. While the position has not previously been included in the budget, it is funded at .75 FTE in the current appropriations. The additional .25 FTE will be funded by the City's General Fund. Department Head Signature Treasurer Comments: Date Director Signature Date r-~ Recommended ~ NotRecommended I '~ It~t Treasurer's Signature ~-~ D Mayor Comments: Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date [-~ Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: GENERAL FUND - GEN. MISC. Adjustment Number: 2002 #5 IApproval Authority Required: ['-~Treasurer SOURCE OF FUNDS: Description Increase Beginning Cash F"] Mayor [-- Amount 15,000 Fiscal & Bud~tet USE OF FUNDS: Description Increase Professional Services Remaining unallocated beginning cash = $215,000 NARRATIVE: This adjustment will provide for that portion Gary Sexton's contract which is not chargeable to the Conference Center project. [~"~Co~ncil Amount 15,000 Department Head Si~lnature Treasurer Comments: Date Director Signature Da~e Recommended ~ Not Recommended Mayor Comments: Treasurer's Si~lnature ~ r-~ Recommended F'---] Not Recommended [--~ Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's S(~nature Date Approved Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: ABATEMENT REVOLVING Adjustment NUmber: 20O2 #6 Approval Authority Required: [--~Treasurer SOURCE OF FUNDS: Description Draw on Line of Credit r-]Mayor Amount 275,000 [-- Fiscal & Budget USE OF FUNDS: Description Abatement Actions Interest & Related Costs r~cQuncil Amount 260,000 15,000 275,000 NARRATIVE: This adjustment will create the authority necessary for the costs of renewing the City's abatement line of credit (LOC) bond, paying the accrued interest on drawn funds at year end, and for the use of the LOC to finance the abatement of the Sesko property on Arsenal Way. At the conclusion of the abatement action, a lien will be filed on the property. Monies obtained from that lien will be used to repay the funds drawn on the LOC. Department Hea~l Signature Treasurer Comments: Date Recommended ~ Not Recommended Mayor Comments: Director Signature Date Treasurer's Signature "~..~, _, Recommended [--~ Not Recommended Approved ~-~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: UTILITIES Approval Authority Required: ~--ITreasu rer Adjustment Number: 2OO2 #7 SOURCE OF FUNDS: Description r-~ Mayor Amount Fiscal & Budget USE OF FUNDS: Description Add One Project Manager Position r-~Council Amount 0 NARRATIVE: This adjustment provides authorization for an additional Project Manager position. Funding for the position will be from current appropriations. The position will provide construction oversight to several utility capital projects. Department Head Signature Treasurer Comments: Date Direct~o~ Date [---] Recommended Mayor Comments: Not Recommended Treasurer's Signature ~-1 Recommended [-----I Not Recommended r~] Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date ~'1 Approved r-~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: ADMINISTRATIVE SERV. Adjustment Number: 2OO2 #8 Approval Authority Required: r-]Treasurer SOURCE OF FUNDS: Description [--~ Mayor Amount Increase: Beginning Cash BB,O00 Fiscal & Budget USE OF FUNDS: Description Increase: Professional Services Remaining unallocated beginning cash = $182,000 NARRATIVE: This adjustment will provide expenditure authority necessary to fund the hearings examiner function for the current fiscal year. r~co, uncil Amount 33,000 De~artment'l~ead Si~ture Date'/ ' / - Treasurer Comments: Director Signature Date Recommended Not Recommended Treasurer's Sig~ Mayor Comments: Recommended [~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved r-~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: GENERAL FUND EQUIPMENT RENTAL I Approval Authority Required: r-'~Treasurer Adjustment Number: 20O2 #9 SOURCE OF FUNDS: Description General Fund: Delete: Proceeds of TAN Add: Proceeds of I nterfund Loan Equipment Rental Fund: Add: Repayment of Interfund Loan NARRATIVE: [--]Mayor F Amount Fiscal & Budget [-~COuncil USE OF FUNDS: Description Amount Ending Cash (TAN) (1,25O,OO0) 1,000,O00 1,000,000 Repayment of Interfund Loan Issue of Interfund Loan (1,250,OO0) 1,000,O00 1,O00,OO0 This adjustment will change the budget to reflect the use of an interfund loan to finance the General Fund cash flow instead of a Tax Anticipation Note, TAN, as was originally anticipated. Market conditions make the use of a TAN financially unattractive at this time. Department Head Signature Treasurer Comments: Date Director Signature Date Recommended ~ Not Recommended Mayor Comments: Treasurer's S ignatuTe ~ Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved F--'] Denied Fiscal & Budget Committee Signature V7 Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: WASTEWATER UTILITY Adjustment Number: 2O02 #11 Approval Authority Required: F-]Treasurer SOURCE OF FUNDS: Description ~--~Mayor Amount Increase: Beginning Cash 42,170 F- Fiscal & Budget USE OF FUNDS: Description Increase: Residential Disconnection Program I-X] Cp uncil Amount 42,170 NARRATIVE: This adjustment will increase expenditure authority for the current fiscal year to allow the program to distribute up to the total of $70,000 which was originally authorized for the three years of the program. The adjustment will raise current year expenditure authority to $54,670 from the current $12,500. Department Head Signature Date Director Signature Date Treasurer Comments: r-~ Recommended Mayor Comments: Not Recommended Treasurer's Signature r---] Recommended ~ Approved Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved [~ Denied Fiscal & Budget Committee Signature Date iq b D ) CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: I Approval Authority Required: J--]Treasurer Adjustment Number: 2O02 #12 SOURCE OF FUNDS: Description Beginning Cash NARRATIVE: Mayor Amount 86,533 F Fiscal & Budget USE OF FUNDS: Descript on Managers Pay per Schedule ~--]COuncil .A. mount 86,533 Department Head Signature Treasurer Comments: Date Director Signature Date ~ Recommended Mayor Comments: Not Recommended Treasurer's Signature Dat~ .-~ Recommended ~ Not Recommended "---] Approved [----] Denied Fiscal & Budget Committee Comments: Mayor's Signature Date ----] Recommended ~ Not Recommended ---] Approved L----] Denied Fiscal & Budget Committee Signature / , ,., / ,.~ ., Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: GENERAL FUND - FIRE Adjustment Number: 2002 #13 Approval Authority Required: ~--]Treasurer SOURCE OF FUNDS: Description r-~ Mayo r Amount Reduce: Salary Set-aside 123,080 I ncrrease: Beginning Cash 33,570 F Fiscal & Budget USE OF FUNDS: Description Increase: Fire Personnel Costs ~-~Council Amount 156,650 NARRATIVE: This adjustment will add expenditure authority necessary to fund the new firefighter contract. The funding is provided from the balance of the monies set aside for personnel cost increases with the balance funded from beginning cash in excess of budget. Department Head Signature Date Director Signature Date Treasurer Comments: Recommended F----] Not Recommended Treasurer's Signature Mayor Comments: ~ Recommended r-~ [---] Approved ~ Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Com'mittee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: STREET FUND EQUIPMENT RENTAL Approval Authority Required: r-]Treasurer r-] Mayor Adjustment Number: 2002 #14 SOURCE OF FUNDS: Description Equipment Rental Fund: Decrease Ending Cash Street Fund: Increase Inter-fund Loan Amount 116,200 116,200 r- Fiscal & Budget USE OF FUNDS: Description Increase Inter-fund Loan Increase Capital Purchase FX-]Cquncil Amount 116,200 116,200 NARRATIVE: This adjustment will provide expenditure authority to allow the Street Fund to purchase a needed piece of equipment using monies borrowed from the Equipment Rental fund. The loan will be repaid using the savings realized from not renting the equipment and from income generated by renting our equipment to other municipalities. Department Head Signature Date Treasurer Comments: Director Signature Date [----] Recommended r-~ Not Recommended Treasurer's Signature -~-- ?at~e~'' Mayor Comments: r-~ Recommended F-~ Not Recommended F---] Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date AGENDA BILL BREMERTON CITY COUNCIL 1, SUBJECT: Budget Adjustment implementing the addition of the Finance and Economic Development Departments, funding a Discretionary Reserve Accoun~nd making other changes. .~ / /' ./ 2. CLEARANCES! ~2/6~m~ of back if necessary) Finance Director.~~___.:,~~ FOR AGENDA OF: ORIGINATING DEPT: ORIGINATOR: DATE SUBMITTED: Executive Mayor Bozeman 8/6/02 3. EXHIBITS: Matrix of adjustments to Authorized Revenues and Presented to Committees in Study Session ENDO~/fE~S ~ON __ MAYOB..--~.--~ (~)2~.'"'h -- APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: ~ COUNCIL PRESIDENT ('~.¢r~ ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: This adjustment adds the Finance and Economic Development Departments and changes authorized staffing to conform to ordinances recently approved by Council. The adjustment also makes numerous changes to authorized revenues and expenditures which fund a Discretionary Reserve within General Fund. Other changes adjust Block Grant funding of City activities to final allocation, add to General Facilities and Park Maintenance functions as well as other minor adjustments. 8. RECOMMENDATION: Motion to approve Budget Adjustment Number 15. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: ;Mayor Finance Director 12~/31/02 N/A PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED i~ DISAPPROVED AMENDED 11. AGENDA BILLNO: 0~-' 1~? ~o CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: PARK DEVELOPMENT DISCRETIONARY RESERVE Adjustment Number: 2002 #16 Approval Authority Required: FITreasurer FIMayor i-- SOURCE OF FUNDS: Description Amount Park Development Fund: Transfer from Block Grant $ 78,120 Federal Grant $ 182,280 Fiscal & Bud~let USE OF FUNDS: Description Block Grant Fund Supplies and Services Transfer Out to Park Development Fund Park Development Fund Capital Project - Jarstad Pool [~--~Council Amount $ (78,120) $ 78,120 $ 260,400 NARRATIVE: This adjustment will provide expenditure authority necessary to make the improvements to the City's municipal swimming pool funded by federal grant monies. Department Head Signature Treasurer Comments: Date (~ector Sigrla4ure Date ~/ Recommended ~ Mayor Comments: Not Recommended Trea'sur~r's Signature Date Recommended Approved Fiscal & Budget Committee Comments: Mayor's Sig~nature v Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: FINANCE Adjustment Number: 2002 #17 Approval Authority Required: ~--~Treasurer SOURCE OF FUNDS: Description DISCRETIONARY RESERVE NARRATIVE: ['-IMayor r-' Amount 53,000 Fiscal & Budget ~-~Qouncil USE OF FUNDS: Description Amount PERSONNEL 53,000 Increase 2002 personnel budget to cover the Interim Finance Director contract, .66 F-CE extra help for the remainder of 2002 and the Finance Director position for one and a half months. De p~~u re'~'~/-~ate Finance Director Comments: Recommended ~ Not Recommended Mayor Comments: Director Signature Finance Directo-'-~'s Signatu-re - Date Date Recommended ~ Not Recommended Approved r-~ Denied Fiscal & Budget Committee Comments: Approved ~ Denied Mayor's Signature Date ~~.,e/~t Co,/~_~m i t t e e ~.~.cal &/~g Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Finance Approval Authority Required: r-]Treasurer Adjustment Number: 2002 #18 CONTINGENCY RESERVE: Sale of Assets Ending Fund Balance ['-1 Mayor 471,000 44,000 :Fiscal & Budget CONTINGENCY RESERVE: Operating Transfer to Bond Fund [~Oouncil 515,000 NARRATIVE: To finance repayment of the 4th Street Building Bonds from the proceeds of the note receivable associated with the sale of the building. Department Head Signature Treasurer Comments: Date Director Sign~['~'e-- ~ - - Date Recommended F---] Mayor Comments: Not Recommended Trna su r~r's~natu re Date Recommended ~ Approved F---] Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's S~nature Date Approved r-~ Denied .... ~ /,,.,/,~ .., Fiscal & Budget Committee Signature Date Requesting Department: I Approval Authority Required: I-]Treasurer CITY OF BREMERTON BUDGET ADJUSTMENT R£QUE~T PARKS/GOLF 407 Adjustment Number: 2002-19 N Mayor SOURCE OF FUNDS: Description Amount 407 54 362.8000 Concession Proceeds $931,000.00 407 54 347.3004 Golf Cart Path Fees $393,000.00 REVENUE INCREASE: $ 1,324,000.00 F Fiscal & Budget r--'lCouncil USE OF FUNDS: Description Amount 407 576.6654.54110 Professional Service $1,287,000.00 407 54 508.00.5000 Ending Cash Balance $37,000.00 !XPENDITURE INCREASE: $ 1,324,000.00 NARRATIVE: This adjustment reflects the changes in the Gold Mountain Golf Complex Contract as required by Bond Council. Department Head Signature Date Treasurer Comments: Recommended r'~ Not Recommended Tfreasurer's Sig'~'h~ure ~- - Mayor Comments: r-~ Recommended r-~ Not Recommended [---'-I Approved ~ Denied ~a ure Date/ Fiscal & Budget Committee Comments: Denied CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Community Development Adjustment Number: 2O02 #2O IApproval Authority Required: FI Finance Director SOURCE OF FUNDS: Description Discretionary Reserve F-~ Mayo r Amount 14,500 r- Fiscal & Budget USE OF FUNDS: Description Personnel r~council Amount 14,5o0 NARRATIVE: This adjustment will add a position Development Manager position to the Department of Community Development. Funding for this change will come from the Discretionary Reserve account in the General Fund. An updated organization chart and Budget Summary are attached. Department Head Signature Finance Director Comments: Date Director Si~na,~ure - ' d - Recommended F-~ Mayor Comments: Not Recommended, /~¥__~ /(~~ <~ /l~at/e~.¢'/~ · ~o¢~ F'hl¢nc~i~or's 9'ii, nature ~ Recommended r-~ Not Recommended ~ Approved ~ Denied Fiscal & Budget Committee Comments: Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST City Attorney 01/14 Adjustment Number: 2002- Requesting Department: IApproval Authority Required: [--~Treasurer r-lMayor SOURCE OF FUNDS: Description Amount t~-,_ding Fund Balance - Discretionary Reserve Account NARRATIVE: 121,000 r-- Fiscal & Budget USE OF FUNDS: Description 515.2214-54110 Professional Services Personnel costs Council Amount 71,000 50,000 The 2002 budgeted amount for City Attorney professional services is not sufficient to pay current outside counsel legal fees. This adjustment reflects payment of outside counsel fees anticipated through the end of 2002. Additionally, the 2002 budgeted amount for personnel costs was not sufficient to fund the fully staffed office. This adjustment accurately reflects personnel costs through the end of 2002. D~Jartment Head Signature ~-.-----"O~ate Director Signature Date Treasurer Comments: ,.../ Recommended [ J Not Recommended /~.,~(~n ,~, J Treasu r~Ys SJgr~tur~ Mayor Comments: J Rec0mmended [ I NotRecomme~ ~ ,Approved L J Denied ~._...~ ~ ~.)1~ ' /~'~_~ .~/~:~ Mayor's Si~nature Date Fiscal & Budget Committee Comments: [ I Approved [ J Denied Fiscal & Budget Committee Signature Date Schedule of Invoices received through October 7, 2002, by the City Attorney's Office relating to Budget Adjustment No. 21. Attorney Matter Current Outstanding Fees Jane Ryan Koler Dontos Abatement $1.20 Jane Ryan Koler Jacobs Abatement $300.00 Jane Ryan Koler Pennsylvania Avenue Abatement $208.00 Carol A. Morris General Land Use Issues $608.00 Carol A. Morris Miller v. City of Bremerton $704.00 Carol A. Morris CenCom v. City of Bremerton $416.00 McGavick Graves, P.S. Baier Grievance $1,510.55 TOTAL $3,747.75 Other Attorney Fees Due: Lane Powell, et' al. Burlington Environmental $46,219.59 Phillips McCullough, et al. Burlington Hearing Examiner $4,500.00 TOTAL $50,719.59 /09 Schedule of Invoices received from October 7, 2002, through November 15, 2002 by the City Attorney's Office. Attorney Matter Current Outstanding Fees Jane Ryan Koler Dontos Abatement $3.00 Jane Ryan Koler 608 Washington Abatement $143.50 McGavick Graves, P.S. Baler Grievance $2,571.85 McGavick Graves, P.S. Bogen ULP $447.30 McGavick Graves, P.S. Misc. Employment Issues $900.00 Lane Powell, et al. Burlington Environmental, Inc. $710.30 McCullough, Hill, et al. Burlington Hearing Examiner $680.00 TOTAL $5,455.95 CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Community Development I Approval Authority Required: r"] Finance Director [--~ Mayor Adjustment Number: r' Fiscal & Budget 2002 #22 Council SOURCE OF FUNDS: Description Supplies Amount 6,000 USE OF FUNDS: Description Personnel Amount 6,000 NARRATIVE: Final payout of temporary Code Enforcement employee was not anticipated in the original budget. Overrun can be covered by 2002 savings in supplies. Department Head Signature Finance Comments: Date Director ~i~lnature / Date Recommended r-~ Not Recommended Mayor Comments: 'i~ance t)irector's Signature ~ Recommended ~ r~] Approved ~'] Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature ~ate ~ ' Approved r'~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: I Approval Authority Required: r'-~ Finance Finance Adjustment Number: 2OO2 #23 SOURCE OFFUNDS: Description r-~ Mayor Amount Ending Fund Balance- Discretionary Reserve Accounl 19,000 Fiscal & Budget USE OF FUNDS: Description Personnel Supplies ~-~Council Amount 15,000 4,O00 NARRATIVE: This adjustment will cover costs not anticipated in the original budget. An employee will retire effective 12/31/02 with thirty years of service. Leave payouts associated with this cannot be absorbed in the current budget. Also, banking service fees are normally recovered through a compensating balance agreement with Bank of America. Due to the Iow interest rates we have not been able to earn interest to offset the fees we incur. This will result in a one time bill at year end of a~r~!$~,0~0. Department Head Signature Date Director ~g'~ature - ~ Date Finance Comments: ~'-~' Recommended Not Recommended Mayor Comments: nancd Director's Signature Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Intergovernmental Services Adjustment Number: 2002 #24 Approval Authority Required: J']Finance ~--~Ma¥or SOURCE OF FUNDS: Description Amount Ending Fund Balance- Discretionary Reserve Account 20,000 Fiscal & Budget USE OF FUNDS: Description Services r~-]council , Amount 20,000 NARRATIVE: Election costs have been greater than originally anticipated. Also the dues for Kitsap Regional Coordinating Council came in $4,600 greater than the budgeted amount. Department Head Signature Finance Comments: Date DirectOr Signature Date ~'~r/'' Recommended Not Recommended Mayor Comments: ,~nance/Director's Signature Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Police & Fire Pension Adjustment Number: 2002 ~r25 Approval Authority Required: [-]Finance SOURCE OF FUNDS: Description Supplies & Services ~--~ Mayor Amount 30,000 Fiscal & Budget USE OF FUNDS: Descdption Personnel [~-]Council Amount 30,000 NARRATIVE: This adjustment will transfer funds between categories within the department to cover the higher than anticipated medical costs of police and fire retirees. Department Head Signature Finance Comments: Date Director ~;i'gr~ature / Date ~r/Recommended Not Recommended Mayor Comments: F~/~t'nce Di~ector~ Signature Recommended r-~ Approved ~ Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date r----] Approved r-~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Executive I Approval Authority Required: ~--~ Finance Adjustment Number: 2002 #26 SOURCE OF FUNDS: Description Admin Services Supplies Ending Fund Balance- Discretionary Reserve Account r-]Mayor Amount 19,000 12,000 Fiscal & Budget USE OF FUNDS: ~-~Council, Description Amount Personnel 9,000 Supplies 22,000 NARRATIVE: Budget adjustment #15 did not adequately fund the department for the professional services that were moved to the department. It also did not fully address the cost of the Municipal Services Coordinator through year end. Department Head Signature Finance Comments: Date Director Signature Date Recommended Not Recommended Mayor Comments: _(ance I~irec{or's Signature E~te ~ Recommended r---] Approved Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date r-~ Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGETADJUSTMENTREQUEST Requesting Department: Fire Adjustment Number: 2002 #27 IApproval Authority Required: [--~ Finance SOURCE OF FUNDS: Description Sales Tax Revenue [-]Mayor Amount 95,000 F Fiscal & Budget r~ Council USE OF FUNDS: Description Amount Personnel 95,000 NARRATIVE: 75% of the excess costs in this area are directly related to leave payments for retiring employees. The remaining amount represents overtime costs related to shift coverage for employees that were on disability leave. This adjustment is funded from higher than anticipated sales tax revenues in 2002. ent Head Signat6r.~ Finance Comments: Date Director Signature Date ~'~ Recommended Not Recommended Mayor Comments: (~a-nce t)ii-ec-T(~r s Signature / C/at~ TM Recommended Approved Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Police J Approval Authority Required: r-]Finance Adjustment Number: 2002 #28 SOURCE OF FUNDS: Description Gmnt Revenue Off Duty Revenue Law Enforcement Services Sales Tax Revenue ~--~Ma¥or ['- Amount 106,000 78,000 60,000 241,000 Fiscal & Budget [~-~Council , USE OF FUNDS: Description Amount Personnel 185,000 Supplies, Services 300,000 NARRATIVE: This adjustment reflects revenue and expenses associated with reimburseable grants and outside law enforcement services that were contracted after the 2002 budget was prepared. In addition, jail costs have exceeded odginal expections by approximately $217,000 in 2002. The city experienced a higher than normal number of extraditions during 2002 which also contributed to the higher than normal supplies cost..h-tripe pa_st t__he_se costs were funded by an outside agency. The additional costs can be funded Department Head Signature Date Director Signature Date Finance Comments: Recommended [--'-"] Not Recommended ance I~irector's Signature D~,te ' Mayor Comments: Approved ~-~ Denied ~ Mayor's Signature Ie Fiscal & Budget Committee Comments: Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Misc Non-departmental I Approval Authority Required: r]Finance Adjustment Number: 2002 #29 SOURCE OF FUNDS: Description r-]May°r r- Amount Ending Fund Balance- Discretionary Reserve Accounl 68,300 Fiscal & Budget USE OF FUNDS: Description ~JCouncil , Amount Personnel 50,000 Supplies, Services 14,000 Capital 4,300 NARRATIVE: This adjustment reflects additional expenditures related to higher than expected Unemployment costs and excess compensation related to employee retirements. It also restores funds transferred out of the department with budget adjustment #15 that were needed because of costs incurred on the Burlington audit. Date Director Signature j Date Department Head Signature Finance Comments: ~'~' Recommended ~ Not Recommended Mayor Comments: F~nce Director's Signature ~ Recommended ~ Not Recommended r-~ Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGETADJUSTMENTREQUEST Requesting Department: Gift and Donations I Approval Authority Required: r~Finance Adjustment Number: 2002 #30 SOURCE OFFUNDS: Description Parks Donations: Supplies & Services r-~ Ma¥or Amount 5,000 Police Donations: Capital 3,000 F Fiscal & Bud~let USE OF FUNDS: Description Parks Donations: Capital Police Donation: Supplies & Services r~council Amount 5,000 3,000 NARRATIVE: This is a technical correction reallocating costs between categories within the department. ,~nPartm'~..[nt Head Signature ance Comments: Director Signature Date ~/Recommended ~ Not Recommended Mayor Comments: n~:e ~)irector's Signature ~ Recommended ~ Not Recommended [-~ Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Si~lnature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Conference Center I Approval Authority Required: ~ Finance Adjustment Number: 2002 #31 SOURCE OF FUNDS: Description Intergovernmental Revenue r-~ Mayor Amount 310,000 Fiscal & Bud~let r~council , USE OF FUNDS: Description Amount Capital 200,000 Ending Balance 110,000 NARRATIVE: Expenditures on the Conference Center have proceeded at a faster pace than anticipated in the original budget. Department Head Signature Finance Comments: Date Direc[or Si~{~i'l~ 't,' ~ Date J--'~" Recommended Not Recommended Mayor Comments: ,ii~ance Director's Signature Recommended Approved Not Recommended Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Adjustment Number: 2002 #32 Requesting Department: General Fund - Parks Approval Authority Required: r-~Finance J-]Mayor SOURCE OF FUNDS: Description Amount Parks: Operating Transfer In 85,000 I Discretionary Reserve Fund: Ending Fund Balance 85,000 Fiscal & Budget USE OF FUNDS: Description Council Amount Parks: Services 85,000 Discretionary Reserve Fund: Operating Transfers Out 85,000 NARRATIVE: The Department of Revenue levied a tax assessment against the City for sales tax payable in the amount of approximately $200,000 on maintenance services provided to the City under our contract with Ed Faulk. The Parks Director and City Attorney were able to negotiate the amount due down to $85,000 if paid this fiscal year. This is a one time, non-recurring expense and we are requesting that council approve the use of Discretionary Reserve funds for this purpose. Department Head Signature Date ~ ~,~nature Da~e Finance Comments: Recommended ~ Not Recommended Mayor Comments: F~ce D(rector's Signature r-~ Recommended ~ Not Recommended r~ Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved ~'~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Public Safety Project Fund Adjustment Number: 2002 #33 Approval Authority Required: r-~Finance SOURCE OF FUNDS: Description Sale of Bonds Interest Earnings Mayor Amount 13,086,000 15,000 13,101,000 Fiscal & Bud~let USE OF FUNDS: Description Bond Issuance Expenses Capital Ending Fund Balance ~]Council , Amount 160,O00 21,500 12,919,500 13,101,000 NARRATIVE: Public Safety Bonds are to be sold on December 3, 2002. The proceeds will be placed in the Public Safety Project fund. Costs associated with the sale of the bonds and the management of the various projects will be paid from the fund as well as the construction and equipment purchases approved in the bond issue. Only a small portion of the funds will be spent in 2002. Department Head Signature Finance Comments: Date Director Signature Date ~/" Recommended Not Recommended Mayor Comments: ,~an~e ~i~e~or's Signature Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature Date Approved [--'-] Denied Fiscal & Budget Committee Signature I1. Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: [ Appro[.~l Authority Required: Finance Director Parks/General Fund 001 Adjustment Number: SOURCE OF FUNDS: Description 001 51 347.6002 5133 Class Tuition-Cent. 21 001 347.6003 5128 Senior Programs--Trips E] Mayor ~'~ Fiscal & Budget 5,000 20,000 Amount Revenue Increase 25_,O_0_Q USE OF FUNDS: Description 001 574.2051.51020 5133 Extra Help--Century 21 001.574.2051.53110 5133 Supplies--Century 21 001.574.2051.54910 5128 Miscellaneous--Trips Expenditure Increase NARRATIVE: BI Council Amount 3,500 1,500 20,000 25.000 This adjustment reflects increases to both revenues and expenses from the 2002 budget, associated with a new youth program in conjunction with the Bremerton School District after-hours classes (Century 21), and the Senior Center Trip program. Department Head Si~lnature Finance Director's Comments: Date 4 fDirector ~rfature / D~te ecommended Not Recommended Mayor Comments: Cnce Director's Signature Recommended E]Approved r--~Not Recommended [--~Denied Fiscal & Budget Committee Comments: Mayor's Signature r--~Approved ['-'] Denied Fiscal & Budget Committee Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: I Approval Authority Required: [--~ Finance Human Resources Adjustment Number: 2002 #35 SOURCE OF FUNDS: Description ~--]Mayor Services & Equipment Ending Balance - Discretionary Reserve Account NARRATIVE: Amount 10,259 13,905 24,164 Fiscal & Budget ~'~CoundI USE OF FUNDS: Description Amount Personnel Sen/ices 10,259 Personnel Sen/ices 13,905 24,164 Overexpenditures in Personnel Services were primarily due to hring a temporary to answer the phone, wait on the counter and perform general clerical work in order to reduce the workload of HR staff members and act as a backup to the Legal Assistant in the Legal department. This position was funded for the first quarter of 2002 by Legal until they hired a Legal Assistant. Secondary reasons included the implementation of the Pay & Class study for exempt employees, particularly in complying with BMC 2.50 requirements. The reduction in services and supplies wa primarily due to a decrease in expenditures in Professional Services relating to labor negotiations. Department Head Signature Date Director Signatu~- / ~ Finance Comments: ~ Recommended ~ Not Recommended Mayor Comments: nce I~irect~r s Signature Recommended ~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Comments: Mayors Signature Approved ~ Denied Fiscal & Budget Committee Signature Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: Adjustment Number: I Approval Authority Required: J-'] Finance Director Mayor r~ Fiscal & Budget F'] council SOURCE OF FUNDS: Description Amount USE OF FUNDS: Description Amount NARRATIVE: Department~ead S ig na--t~'Te Finance Director's Comments: Date/ ! Director Signature Date ~Recommended r--] Not Recommended Mayor C@~F~ents: Fi~a'j~e ' ~cto~ S'gnature Recommended Approved D-]Not Recommended ~ Denied Fiscal & Budget Committee Comments: Mayor's Signature r-]Approved r-~ Denied Fiscal & Budget Committee Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting epart ent: ~ 0 2. ~-~'~-- Adjustment Number: IAppro[.~l Authority Required: Finance Director r-~ Mayor Fiscal & Budget SOURCE OF FUNDS: Description 5"10 ~Cc~ c~,~r7- Amount USE OF FUNDS: Description r--] Council Amount NARRATIVE: ~ U~ Pt~j S ~ /~+,.~,~---~_~ PZd4~J ~ ~~ V~~ ~b~ Fi4~re,o,s C~ments: ate Director .~natu~ j / ~ate · [-']Not Recommended ~~,~ ,) ///L'~'~/~/_~ [~Recommended 71~dance~i-rectors Signature ' Date-r Mayor Comments: ~/ , ['"] Recommended r~Approved r~Not Recommended r-~ Denied Fiscal & Budget Committee Comments: Mayor's Signature / Date/ ' [--~Approved [~ Denied Fiscal & Budget Committee Date CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: I Approval Authority Required: [--]Finance Public Works & Utilities Adjustment Number: 2002 ~38 SOURCE OF FUNDS: Description Water Fund: Ending Fund Balance J~Ma¥or Amount 85,645 Wastewater Fund: Ending Fund Balanc Capital 40,583 8,500 Storrnwater Fund: Supplies Ending Fund Bal; Equipment Services: Repair Charges NARRATIVE: 36,252 858,748 11000 Fiscal & Budget USE OF FUNDS: Description Water Fund: Personnel Supplies Debt Service Wastewater: Personnel Supplies Stormwater: Capital Personnel Grant Revenue Equipment Services: Supplies r~council Amount 7,880 51,030 26,735 8,500 40,583 430,000 35,000 430,000 11,000 An adjustment to the 2002 budget is required in the Water, Wastewater, and Stormwater funds for adjusted fees payable to the General Fund for support services for 2002, litigation expense and to adjust capital expenditures for carryover projects. Additionally, adjustments are requried Water Resources for repairs to the Union river channel due to the January 2002 storm and to Engineering for performing NPDES Phase II Storm Water planning in-house rather than by outside consultant. An adjustment is required to General Fund Equipment Services due to extraordinary repairs to emergency services vehicles. Details of the adjustments are attached. Department Head Signature Finance Comments: Date Director Signature Date ~r~ Recommended ~ Not Recommended Mayor Comments: nce Directors Signature Recommended ~ Not Recommended ~ -~ Approved ~ Denied J--- ayor s Signature ~'/~ Fiscal & Budget Committee Comments: Approved [~ Denied Fiscal & Budget Committee Signature Date T 1. SUBJECT: ORDINANCE NO. Adopting the 2003 Budget AGENDA BILL BREMERTON CITY COUNCIL ORIGINATING DEPT: ORIGINATOR: DATE SUBMITTED: Dec. 11,2002 Finance Richard Saynders 11/2,5/2002 2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS: -'~ ~/~"'// -- Proposed Ordinance J~ o, 4~ ~ , ~:-~~~~or.s Prelimina~ Budget (by reference) Ci~ Attorney ~ ~ ~ ~i; ................ ENDORSE~ ~--~~MATION MAYOR APPROVED BY COUNCIL PRESIDENT FOR SUBMI'i-I'AL: / COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: This ordinance adopts the City's 2003 Budget at the fund level as described in the Mayor's Preliminary Budget. 8. RECOMMENDATION: .Mot[nmto_appr4~=-thc Ord!ncncc adc. pt:rig th~ £CC3 Budge[ on first Motion to pass Ordinance No./-'/g°3 ?adopting the 2003 Budget on second reading. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: Director of Finance Mayor Dec. 3!, 2003 N/A PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED AMENDED 11. AGENDA BILL NO: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City will lack the authority to spend money or to employ staff after Dec. 31,2002. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EC~UIPMENT OR OTHER RESOURCES' As presented in the several study sessions. 7. RESEARCH SOURCES: Preliminary budget document. ORDINANCE NO. ~/~ ~ ~ AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving and adopting the financial budget for the several funds of the City of Bremerton for the fiscal year 2003, and appropriating the amounts set forth in each budget to each fund in accordance with RCW 35.33.075. THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION1. That the financial budget for the City of Bremerton, to wit: "Official Budget for the year 2003, City of Bremerton", now on file in the office of the City Clerk of the City of Bremerton, be and the same is hereby approved and adopted, and the respective amounts provided for in said budget for the several funds of the City of Bremerton, be and the same are hereby fixed and adopted as follows: ESTIMATED REVENUES AND EXPENDITURES FOR THE YEAR 2003 FUND # 001 101 102 103 104 106 108 109 110 112 113 114 115 201 202 301 302 401 407 451 481 503 510 GRAND TOTAL ESTIMATED REVENUES AND EXPENDITURES: DESCRIPTION AMOUNT General ....................................................................................... $27,501,626 Arterial Street ................................................................................. 7,820,000 Street .............................................................................................. 2,253,433 Contingency Reserve ....................................................................... 904,000 Civic Improvement ........................................................................... 300,868 Community Development Block Grant ......................................... 2,854,437 Abatement Revolving ...................................................................... 299,000 Real Estate Transfer Tax ................................................................ 2,290,000 Police Special Projects ...................................................................... 318,000 Parks Development ........................................................................... 894,857 Public Access Television .................................................................. 184,900 Girl & Donations ................................................................................. 86,600 Discretionary Reserve ....................................................................... 994,414 Bond Fund ...................................................................................... 1,715,861 LID Guaranty ...................................................................................... 48,800 Conference Center ........................................................................ 12,000,000 Public Safety Bond ....................................................................... 13,149,000 Water Operating ........................................................................... 15,511,750 Municipal Golf Course .................................................................. 4,091,374 Wastewater Operating .................................................................. 19,229,380 Stormwater Operations .................................................................. 1,659,507 Risk Management .......................................................................... 1,711,985 Equipment Rental Reserve ............................................................. 4,338,550 $120,158,342 1 2003 Budget Of the total revenue, the sum of $6,974,067 is the estimated amount to be received from a $4.4674 levy per $1,000 of assessed valuation of all property within the city limits of the City of Bremerton as set forth in Ordinance No.4826. SECTION 2. That the separate totals set forth in Section 1, hereof for each of said funds, as particularly itemized in the "Official Budget for the year 2003, City of Bremerton on file in the office of the City Clerk of the City of Bremerton, be and the same are hereby appropriated to each of said departments for the fiscal year 2003. SECTION 3. Nothing contained herein shall be construed to require the City of Bremerton or its officers to fill any vacancy in any of the positions established by this ordinance resulting from the discharge, resignation or retirement of such employee. Nothing herein contained shall require the City of Bremerton or its officers to pay the maximum amount budgeted for any position shown therein. SECTION 4. SeverabilitB If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 5. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the PASSED by the City Council the day of ,2002 day of ,2002 Approved this day of CAROL ARENDS, Council President ,2002 ATTEST: CARY BOZEMAN, Mayor APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk 2 ROGER A. LUBOVICH, City Attorney 2003 Budget PUBLISHED the EFFECTIVE the ORDINANCE NO. day of day of R:kLEGAL\Ordinances~Finance~2003 budget ordinance.doc .,2002 .,2002 3 2005 Budget AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORDINANCE RELATING TO COMMERCIAL ORIGINATING DEPT: Administrative Services PARKING TAX RATES ORIGINATOR: Kathleen McCluskey DATE SUBMITTED: Nov. 20, 2002 2. CLEARANCES: (Comment on back if necessary) KATHLEEN McC_~LUSKE~.D~i. rector of Administrative Services RO . LUBOVICH, City Attorney FISCAL a B ET ~_HAIRM3~r' O I~E~R~T IOI~'~'~ H XI~XN ENDORSEMENT FI (~'"I~~ATION [-] 3. EXHIBITS: PROPOSED ORDINANCE APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance amends Section 3.82.020 BMC to increase the commercial parking tax rate to 8%. 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading. 7. NOTICE OF ACTION: PULLED ~] TABLED r'] COUNCIL DIRECTIVE: APPROVED [~] RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED ~l AMENDED__ 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES, EOUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 3.82.020 of the Bremerton Municipal Code establishing a new Commercial Parking Tax Rate. WHEREAS, the City Council desires to amend the Bremerton Municipal Code to establish a new commercial parking tax rate; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 3.82.020 of the Bremerton Municipal Code entitled "Tax Rate - Who Must Pay" is hereby amended to read as follows: 3.82.020 TAX RATE - WHO MUST PAY. r~v.. ~..."~ ~.v.~:'~ ~....~.r~ .... ~.~ ~-,~ ~ ~.....,nnn tThere_ is levied upon and shall be collected from every person engaged in a commercial parking business within the City a commercial parking tax in an amount equal to s'2xeight percent r~:o~_~ ~., ,~(8%) of the gross proceeds of the commercial parking business. SECTION2. The rate set forth in Section 3.82.020 of Section 1 of this Ordinance shall be effective January 1, 2003 and the rate in effect as set forth in Section 3.82.020 immediately prior to this amendment shall remain in effect until January 1, 2003. SECTION 3. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2002 PASSED by the City Council the day of ,2002 Approved this day of CAROL ARENDS, Council President ,2002 1 13o CARY BOZEMAN, Mayor Commercial Parking Tax Rate ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the EFFECTIVE the ORDINANCE NO. day of day of RSLEGAL\Ordinances~Administrafion\Commercial Parking Tax.doc ,2002 ,2002 2 Commercial Parking Tax Rate AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORDINANCE RELATING TO RESIDENTIAL ORIGINATING DEPT: Administrative Services PARKING PERMITS ORIGINATOR: Kathleen McCluskey DATE SUBMITTED: November 20, 2002 2. CLEARANCES: (Comment on back if necessary) KATHLEEN McCLUSKEY, Administrative Services 3. EXHIBITS: PROPOSED ORDINANCE IOVICH, City.6t3ome4 .... ~ FISCAL ~, C'HAJ~,MAN O p~i~ AT IO*N~I~X'IR M AN APPROVED FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance amends Chapter 10.09 BMC to establish permit fees for the issuance of parking permits, makes minor amendments, and updates Chapter 3.01 Rate Tables A and B relating to parking fees and fines. 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading 7. NOTICE OF ACTION: PULLED [--] TABLED [] COUNCIL DIRECTIVE: APPROVED [-~ 6. RESPONSIBLE OFFICIAL: Administrative Services Director ENFORCEMENT OFFICIAL: Administrative Services Director EXPIRATION DATE: n/a REVIEW DATE: n/a DISAPPROVED [~] AMENDED ~ATr 8. AGENDA BILL NO.: /30,, 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING, BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 10.09 of the Bremerton Municipal Code relating to Residential Parking Permits establishing pennit fees for the issuance of parking permits and making minor amendments to said chapter; and further amending Rate Tables A and B of Chapter 3.01 of the Bremerton Municipal Code updating Administrative Services and Municipal Court Rate Tables relating to residential parking permits fees and fines. WHEREAS, the current provisions of Chapter 10.09 of the Bremerton Municipal Code entitled "Residential Parking Permits" do not provide for the imposition of fees for the issuance of parking permits; and WHEREAS, the City Council desires to provide for the imposition of fees to help defray the cost of administering the residential parking permit program and establishes a fine for parking with an expired permit; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 10.09 of the Bremerton Municipal Code entitled "Residential Parking Permits" is hereby amended to read as follows: Chapter 10.09 RESIDENTIAL PARKING PERMITS 10.09,010 Purpose. Residential parking permits are established as an exemption to posted parking time limits in those areas impacted by co .mmuter parking to preserve the character of residential districts, preserve access to residences and reduce traffic. 10.09.020 Definitions. For the purpose of this chapter, the words and phrases set forth in this section are defined as follows: (a) "Resident vehicle" means a motor vehicle parked in a residential by a person who is a resident thereofi 1 Residential Parking Permit (b) "Visitor vehicle" means a motor vehicle parked by a person who is visiting a resident within a residential parking permit area. (c) "Commuter vehicle" means a motor vehicle parked in a residential area by a person not a resident thereof.' (d) "Director" means Director of Public Works or his/her designee (ed) "Residential area" means a contiguous area containing public streets and highways or parts thereof primarily abutted by residential property or residential and non-business property (including, but not limited to schools, parks, churches, hospitals, and nursing homes). (_fo) "Residential parking permit area" means a residential area designated as provided in this section wherein resident vehicles displaying a valid permit as described in this chapter shall be exempt from posted parking. 10.09.030 Designation - Process. (a) Creation, deletion or boundary changes of residential parking permit areas may be initiated by the P~Director or upon the verified petition of at least two-thirds of the residents of a residential area. The C:.ty EngineerDirector and Chief of Police or ~designee shall undertake or cause to be undertaken such surveys or studies as are deemed necessary to determine whether a residential area is eligible for permit parking. (b) Upon administrative determination that a particular residential area is eligible for residential permit parking by the Eng':nccr Director and Police Chief with approval of the Mayor, the City Clerk shall post notice in the particular residential area advising the residents of the location and boundaries of the residential parking area, the permit fee to be charged and the right to appeal the designation within ten (10) days. A timely appeal to the Parking Board, filed with the City Clerk, by a resident or business owner within the designated permit area will stay the action until the Board's review and decision. The decision of the Parking Board may be appealed to the City Council. 10.09.040 Posting Area. Upon the final designation of a residential parking permit area, the C'~ty Eng'2neer_.Director shall cause signs to be erected in the area, indicating thereon the parking time limit for such area if not already posted. 10.09.050 Eligibility Criteria. Parking permits may be issued for motor vehicles not in excess of ten thousand pounds only upon application of the following persons: (a) A legal resident of the residential parking permit area who has a motor vehicle registered in his name, or who has a motor vehicle for his exclusive use and under his control. 2 Residential ParMng Permit (b) A person who owns or leases commercial property and actively engages in business activity within a residential parking permit area. There shall be a limit of two (2) residential permits issued per dwelling unit, unless parking availability allows a greater number, but in no event shall more than four (4) permits be issued per dwelling unit. No more than one parking permit may be issued for each business establishment for a motor vehicle registered to or under the control of such person. 10.09.060 Permit - Proof of Residency. Residency shall be established by two so',:rce: of clocumentation which may include such items as a property deed, rental agreement, utility billing, drivers license or vehicle registration. 10.09.070 Permit - Proof of Ownership, Use, Control. Proof of motor vehicle ownership or vehicle use and control shall be demonstrated in any of the following ways: (a) Possession of valid vehicle registration or other indication of title listing thereon the applicant as owner; or (b) A valid vehicle registration or other indication of title in the name of a person other than the applicant, plus a statement provided by the owner that the vehicle is for the applicant's continuous use for a period of fourteen (14) days or more. 10.09.080 Permit - Visitor. Visitor parking permits are authorized for residents of a residential parking permit area for use by a bona fide transient or use of a borrowed or rented vehicle by the resident. Such a visitor permit shall have all the rights of a regular permit. No residence of ~a residential parking permit area shall be issued more than two visitor permits at any one time. These permits shall be in the form of a placard and contain the address of the residence. It shall be the responsibility of the resident to control the use of the permit. These permits can be used for guests as well as home health care specialists, babysitters, repair persons and other similar visitors. 10.09.100 Permit - Issuance - General Procedure. (a) Parking permits may be issued upon payment of the residential parking permit fee set forth in chapter 3.01 BMC. The permit shall be issued on a calendar year basis. If the, application is made within six (6) months of the date fixed for expiration, the fee shall be one- half of the annual fee. (b) A change of residence location or vehicle registration requires a new permit and payment of a residential parking permit change fee as set forth in chapter 3.01 BMC. The re- issuance of a lost residential parking permit or visitor parking permit is subject to payment of the residential parking permit change fee set forth in chapter 3.01 BMC. 3 136 Residential Parking Permit (c) Parking permits shall state thereon the particular residential parking permit area, tke and the expiration date 10.09.110 Permit - Display - Scope. (a) Permits shall be displayed so as to be clearly visible through the rear window of the vehicle on the left side thereof. (b) A residential parking permit shall not guarantee or reserve to the holder thereof an on- street parking space within the designated residential parking area. 10.09.120 Permit - Renewal = D-araticn. Permits may be renewed annually upon payment of the residential parking permit fee set forth in chapter 3.01 BMC ~-~':~*: .... ,~ ~,.u~:~:,,~ fp ~.. ........ -'--o--vu: ...... .~o ,,,~,....,~":"~a ...:'~ .u:~,...o '~--.t,~--~u~*~'. Parking in a :residential parking permit area with an expired permit is subject to a fine as set forth in chapter 3.O1 BMC. 10.09.130 Service Vehicles. Clearly marked service or delivery vehicles are exempt from the time zone requirements while providing service or making deliveries to dwellings within a residential parking permit area. Service vehicles shall comply with time limits for parking in commercial zones. SECTION2. Rate Tables A and B of Chapter 3.01 of the Bremerton Municipal Code are hereby amended to read as set forth in Exhibits A and B, respectively, attached hereto. SECTION 3. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the PASSED by the City Council the day of ,2002 day of ,2002 Approved this day of CAROL ARENDS, Council President ,2002 4 CARY BOZEMAN, Mayor Residential Parking Permit ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the EFFECTIVE the ORDINANCE NO. day of day of ,2002 ,2002 R:~LEGAL\Ordinances\AdministrationLResidential Parking Permits.doc 5 Residential Parking Permit ADMINISTRATIVE SERVICES - RATE TABLE A All Rates Listed Are "Not To Exceed" Fees ADMINISTRATIVE SERVICES REGULATORY LICENSE FEES BMC 5.76 Advertising BMC 5.50 Ambulance Co. Ambulance Inspections BMC 5.17 Charitable Solicitation Non-Profit Professional Fundraiser BMC 5.25 Christmas Tree Lots BMC 5.22 Dance/Public BMC 5.96 Erotic Dance Studios Dancers BMC 5.30 Farmers Market BMC 9.48 Fireworks Stands BMC 5.42 Hotel/Motel BMC 10.24 Housemoving/Oversize Loads BMC 5.98 Limousine Service BMC 5.16 Mobile Food Vendor BMC 5.10 Pawnbroker BMC 5.16 Peddlers BMC 5.04 Petshops Grooming Parlors Animal Welfare Facilities BMC 5.10 Secondhand Dealer BMC 5.98 Shuttlebus BMC 5.36 Special Events: Profit 2O03 RATE $200/yr or $50/30 days $60/veh/semi- annual $25/60 days $675/60 days $70/Iot/yr $265/yr or $70/30 days $700/yr $100/yr $500/yr $1 O0/stand/yr $35+$3/rm $600+$65/mile to .10 of a mile $150/veh/yr $150/ve h/yr $675/yr $75/yr or $25/30days $150/yr $50/yr $5O/yr $135/yr $135/ye h/yr $675/event Table A - A1 EXHIBIT A /,3? ADMINISTRATIVE SERVICES - RATE TABLE A All Rates Listed Are "Not To Exceed" Fees REGULATORY LICENSE FEES Non-Profit BMC 5.20 Street/Sidewalk Vendors BMC 5.54 Taxicabs Taxi Drivers BMC 5.16 Temporary Merchant BMC 5.38 Theatre BUSINESS LICENSE FEE BMC 5.02 PARKING One-Street Locations Off-Street Location Parking Garage Residential Parkinq Permit Residential Parkinq Permit Loss/Chan,qe Fee DOCUMENT REPRODUCTION FEES Per Page Audio or Video Tapes Computer Disks Certification Blue Prints- Aerial Photos, Drawings, Maps Documents: Medical Records 2003 RATE $70/event $250/yr $315/ve h/yr $67/yr $400/30 days $275/yr 2O03 RATE $55/yr 2OO3 RATE Not to Exceed $20/3 hrs $30/10 hrs Not to Exceed $20/3 hrs $30/10 hrs Not to Exceed $100/mo $12/ye h/yr $10 2003 RATE $.15/pg Cost of Tape +$8.50 $8.50 $3.50 $8/pg $19/lSt 5 pages $.83/Pgs 6-31 Table A - A2 EXHIBIT A ADMINISTRATIVE SERVICES - RATE TABLE A All Rates Listed Are "Not To Exceed" Fees DOCUMENT REPRODUCTION FEES Fire Reports Budget Annual Report CHECK HANDLING FEE 20O3 RATE $.63/Pgs 31+ $. 15/pg $25 $25 $4O ADMINISTRATIVE HEARING EXAMINER APPLICATION OR APPEAL $150 Table A - A3 EXHIBIT A MUNICIPAL COURT- RATE TABLE B All Rates Listed Are "Not To Exceed" Fees Municipal Court HEARING EXAMINER APPEAL PARKING FINES Overtime or Non-Payment in Collection Devices: 1st Violation in 30 Days 2nd Violation in 30 Days 3rd Violation in 30 Days Loading Zones No Parking Wrong Way Parked on Sidewalk Fire Hydrant 12" From Curb Physically Disabled (Public and Private) Counterfeiting or User of Counterfeit Permits, Tokens or Script Unauthorized Use of Permits Expired Residential Parkinq Permit All Other Infractions Not Specified Above 2OO3 RATE $65 $17 $27 $56 $17 $22 $17 $56 $27 $10 $250 $500 $150 $27 $27 Table B - B1 EXHIBIT B AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORDINANCE RELATING TO GENERAL BUSINESS LICENSES ORIGINATING DEPT: City Attorney's Office ORIGINATOR: Roger A. Lubovich DATE SUBMITTED: Nov. 22, 2002 2. CLEARANCES: (Comment on back if necessary) ~ICA; ~~,]~r:~r of Administrative Services . A~L~UBOVICH, City °~dt~'~eY IRMAN OPERATIONS CHAIRMAN MAYOR 3. EXHIBITS: PROPOSED ORDINANCE APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance repeals Chapter 5.02 BMC relating to business licenses, business and occupation taxes and utility taxes and creates a new chapter 5.02 relating to the issuance, denial, and revocation of general business licenses and establishes provisions relating to the renting and leasing of real property. 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading. 7. NOTICE OF ACTION: COUNCIL DIRECTIVE: APPROVED [--'] DISAPPROVED [] RESPONSIBLE OFFICIAL: City Clerk ENFORCEMENT OFFICIAL: City Clerk EXPIRATION DATE: n/a REVIEW DATE: n/a AMENDEg~ 8. AGENOABILLNO.: Ot~'"' t~0 1,/3 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, repealing Chapter 5.02 of the Bremerton Municipal Code relating to business licenses, business and occupation taxes and utility taxes and creating a new Chapter 5.02 relating to the issuance, denial, and revocation of general business licenses in the City of Bremerton. WHEREAS, the current provisions of the Bremerton Municipal Code relating to business licenses, business and occupation taxes and utility taxes are currently contained in one chapter of the City Code; and WHEREAS, separating business license, business and occupation taxes and utility taxes into separate chapters and creating another chapter relating to the administration of said codes in this ordinance and in companion ordinances considered concurrently with this ordinance, would assist in the interpretation and administration of the various provisions related to each code; and WHEREAS; the City Council desires to create a new chapter relating to business licenses and further update the provisions relating to the issuance and administration of business licenses in the City; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 5.02 of the Bremerton Municipal Code entitled "Business Licenses and Occupations Taxes" is hereby repealed in its entirety. SECTION 2. A new chapter, Chapter 5.02, entitled "General Business Licenses" is hereby added to the Bremerton Municipal Code to read as follows: CHAPTER 5.02 GENERAL BUSINESS LICENSES 5.02.010 Title. This chapter shall constitute the business license code of the city and may be cited as such. 5.02.020 Power to license for regulation and/or revenue. This chapter is adopted by the city, exercising its power authorized under general law to license for the privilege of engaging in business in the City and revoke the license for cause, to regulate, make inspections and to impose excises for revenue or regulation in regard to all places and kinds of businesses, 1 General Business Licenses occupations, trades, professions and any other lawful activity, as such power is described in the RCW 35.22.280(32). The provisions of this chapter shall be liberally construed for the accomplishment of such purposes. 5.02.030 Administrative Provisions. The provisions contained in Chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 5.02.040 Definitions. For the purposes of this chapter, the definitions set forth in Chapter 3.48 BMC shall apply to this chapter as applicable. In addition, the following definitions will apply: "Ancillary rental" means 1) the renting and/or leasing of real property by a person as secondary to the primary business use by said person for which a business license is issued pursuant to this chapter, or 2) the renting and/or leasing of no more than one residential unit within the structure of the primary residence of the landlord, or 3) the renting and/or leasing of no more than one auxiliary dwelling unit located on the same tax parcel as the primary residence of the landlord. "Casual rental" means the renting of the primary residence of the landlord for a period of four months or less in any given calendar year. "Engaging in business" shall also include the renting and/or leasing real property except for casual rentals or ancillary rentals. "Licellse to use" means a personal privilege to do some particular act or series of acts on real. property without possessing any estate or interest therein. "Po~sessory interest" means the right to exert control over specific real property, or a portion thereof, to the exclusion of others. "Renting and/or leasing of real property" means the creation of a possessory interest in residential, commercial and/or industrial real property in another party by lease, sublease, expressed or implied rental agreement, or tenancy from period to period, for the purpose of gain, and includes leases or rentals in mixed use structures. The renting and/or leasing of real property does not include the license to use real property. 5.02.050 Administration and enforcement. (a) The Director of Finance, or designee, shall have general charge of, and supervision over, the administration and enforcement of this chapter and shall exercise such power and perform all the duties imposed upon him or her. (b) Applicant shall, upon reasonable request, provide or allow the Director to inspect relevant documentation of any licensee for verification of the information provided by applicant/licensee on the business license application. (c) The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. 5.02.060 General business license required. Any person who "engages in business" activities in the City as this term is defined in Chapter 3.48 BMC and this chapter shall first General Business Licenses occupations, trades, professions and any other lawful activity, as such power is described in the RCW 35.22.280(32). The provisions of this chapter shall be liberally construed for the accomplishment of such purposes. 5.02.030 Administrative Provisions. The provisions contained in Chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 5.02.040 Definitions. For the purposes of this chapter, the definitions set forth in Chapter 3.48 BMC shall apply to this chapter as applicable. In addition, the following definitions will apply: "Ancillary rental" means 1) the renting and/or leasing of real property by a person as secondary to the primary business use by said person for which a business license is issued pursuant to this chapter, or 2) the renting and/or leasing of no more than one residential unit within the structure of the primary residence of the landlord, or 3) the renting and/or leasing of no more than one auxiliary dwelling unit located on the same tax parcel as the primary residence of the landlord. "Casual rental" means the renting of the primary residence of the landlord for a period of four months or less in any given calendar year. "Engaging in business" shall also include the renting and/or leasing real property except for casual rentals or ancillary rentals. "Renting and/or leasing of real property" means the creation of a possessory interest in residential, commercial and/or industrial real property in another party by lease, sublease, expressed or implied rental agreement, or tenancy from period to period, for the purpose of gain, and includes leases or rentals in mixed use structures. 5.02.050 Administration and enforcement. (a) The Director of Finance, or designee, shall have general ch~ge of, and supervision over, the administration and enforcement of this chapter and shall exercise such power and perform all the duties imposed upon him or her. (b) Applicant shall, upon reasonable request, provide or allow the Director to inspect relevant documentation of any licensee for verification of the information provided by applicant/licensee on the business license application. (c) The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. 5.02.060 General business license required. Any person who "engages in business" activities in the City as this term is defined in Chapter 3.48 BMC and this chapter shall first obtain a general business license for the current calendar year or unexpired portion thereof, and pay the fees prescribed in this chapter. 5.02.070 Separate general business license required. A separate license shall be obtained for each branch, establishment or location at which the business related activity is 2 General Business Licenses carried on, and each license shall authorize the licensee to carry on, pursue or conduct only that business, or business enterprise at that location. A separate license shall not be required for a business activity determined by the Director to be an accessory activity to a branch, establishment or location for which a license is issued. A separate license shall not be required for the renting and/or leasing of real property in multiple locations which shall be considered a single business encompassing all rental or leased units in the city by a single owner. 5.02.080 Licenses not transferable. No license issued under the provisions of this chapter shall be transferable or assignable unless otherwise specifically provided for herein. A license may be transferred 1) when a business changes its structure which does not result in a substantial change of ownership or, 2) when there is no substantial change in the type of business operated. A new license shall be required when the place of a business location is changed, there is a substantial change of ownership of a business or there is a substantial change in the type of business operated. 5.02.090 License to be posted. All licenses issued pursuant to this chapter shall be posted in a conspicuous place at such location. No person to whom a license has been issued pursuant to this chapter shall allow any person for whom a separate license is required, to operate under or to display such license, nor shall such other person operate under or display such license. 5.02.100 Disclaimer of city liability. Issuance of a license pursuant to this chapter does not constitute the creation of a duty by the city to indemnify the licensee for any wrongful acts against the public, or to guarantee the quality of goods, services or expertise of a licensee. The issuance of a license does not shift responsibility from the licensee to the city for proper training, conduct or equipment of the licensee or his agents, employees or representatives, even if specific regulations require standards of training, conduct or inspection. 5.02.110 General qualifications of licensees. (a) No license shall be issued, nor shall any license be renewed, pursuant to the provisions of this chapter to: (1) An applicant who is not eighteen (18) years of age at the time of application; (2) BMC 5.02.180; An applicant who has had a similar license denied or revoked pursuant to (3) An applicant who shall not first comply with the general laws of the state; or (4) An applicant who seeks such a license in order to practice some illegal act or some act injurious to the public health or safety. 3 General Business Licenses 5.02.120 Application procedure, license fee. (a) The business owner shall make application for any business license required under this chapter to the Director on a form prepared by the department, which application shall be accompanied by a receipt from the department showing payment of the required fee. Business licenses shall be granted annually. The license application fee is prorated per month as applicable and is nonrefundable whether or not the license application is later denied. (b) The fee for a business licensee shall be as set forth in Chapter 3.01 BMC as currently enacted and as hereinafter amended. 5.02.130 Approval and issuance of business license. All licenses approved for issuance by the Director shall be conditioned upon compliance at all times with all applicable ordinances, regulations and statutes of the city and the state. Upon issuance, the license shall be valid as long as licensee continues in business and pays the license fee and occupation tax due pursuant to the provisions of this chapter and chapters 3.48 BMC and 3.86 BMC and shall continue to be valid until the expiration date, which will be December 31 st of any given year. The license shall be in addition to any license required under any law or ordinance of the City. Issuance of a business license does not imply compliance with other City codes. 5.02.140 Renewal. The Director shall mail the forms for business license renewals to business enterprises in the city to the last address provided to the Director by the licensee. Failure of the business enterprise to receive any such form shall not excuse the business enterprise from making application for and securing the required license or renewal, or for payment of the license fee when and as due hereunder. 5.02.150 Application as public record. General business license applications made to the Director pursuant to this chapter shall be public information subject to inspection by all persons except to the extent those records may be deemed to be private or would result in unfair competitive disadvantage to such business enterprise if disclosed, all as more particularly described in Chapter 42.17 RCW. 5.02.160 Nonpayment of business license fee. All license fees unpaid under this chapter when due and all interest and penalties thereon, shall constitute a debt to the City and may be collected with any taxes owed and in the same manner as unpaid taxes under chapters 3.48 BMC and 3.86 BMC. 5.02.170 Grounds for denial or revocation of license. (a) In addition to the other penalties provided by law, any business license issued under the provisions of this chapter may be denied or revoked pursuant to the provisions of this chapter at any time, where: (1) The license was procured by fraud, false representation or material omission of fact, or for the violation of or failure to comply with any of the provisions of this chapter by the person holding such license, or any of his servants, agents or employees, while acting within the scope of their employment; or 4 General Business Licenses (2) The licensee or employee of the licensee violates any of the provisions of this chapter or any applicable city, state or federal law, including, but not limited to Chapters 3.48, 3.50 and 3.86 BMC, or the purpose for which the license was issued is being abused to the detriment of the public, or such license is being used for a purpose different from that for which it was issued. (3) The licensee submits a false or fraudulent City tax return or makes a false statement on any City tax return. (4) The licensee fails to pay any license fee or tax to the city when due including, but not limited to any taxes pursuant to Title 3 BMC. business. (5) The licensee or employee has been convicted of a crime involving the 5.02.180 Denial and Revocation-procedure. (a) Any application for the issuance or renewal of a license issued under this chapter may be denied, or any license issued under this chapter may be revoked based on one or more of the grounds set forth in BMC 5.02.170. (b) The Director shall have the power and authority to deny the issuance of or revoke any license issued under the provisions of this chapter. The Director shall notify such licensee in writing by certified mail or personal service of the denial or revocation of his or her license application or license and the grounds therefore. (c) Any applicant or licensee may, within fourteen (14) calendar days from the date that the denial or revocation notice was mailed to the applicant or licensee, appeal from such denial or revocation by filing a written notice of appeal setting forth the gr9unds therefore with the Administrative Hearing Examiner pursuant to Chapter 2.13 BMC. A filing fee as set forth in chapter 3.01 BMC shall be submitted with the appeal, which filing fee is required to process the appeal. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in Chapter 2.13 BMC. After the hearing thereon the Administrative Hearing Examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the denial or revocation and order issuance or reinstatement of the license, and may impose any terms thereupon.. (d) No renewal or revocation of a license issued pursuant to the provisions of this chapter shall take effect until fourteen (14) calendar days after service of the notice thereof by the Director, and if the appeal is timely filed, the renewal or revocation shall be stayed pending final action by the Administrative Hearing Examiner. All licenses which are revoked shall be surrendered to the City on the effective date of such revocation. (e) The decision of the Administrative Hearing Examiner shall be final. The applicant or licensee and/or the City may seek review of the decision by the Superior Court of Washington in and for Kitsap County within twenty-one (21) calendar days from the date of the 5 General Business Licenses decision. If review is sought as herein prescribed the renewal or revocation shall be stayed pending final action by the Superior Court. (f) When revoked, the license shall be canceled and immediately surrendered to the Director. Upon revocation of any license as provided in this chapter no portion of the license fee shall be returned to the licensee. (g) Upon denial or revocation, the person whose application was denied or license revoked shall not be granted a license for a business, upon any new application that may be made, for a period of ninety (90) calendar days from date of denial or revocation and further, tao license shall be issued until such person cures any defaults that resulted in the denial or revocation. 5.02.190 Unlawful- Violations and Penalties. (a) It shall be unlawful: (1) For any person to engage in business without having obtained a business license or for a person to engage in business after denial of a business license application or renewal or after revocation of a business license. (2) For the president, vice-president, secretary, treasurer, or other officer of any company to engage in business without having obtained a business license or for a person to engage in business after denial of a business license application or renewal or after revocation of a business license. (3) For any person to violate any provision of this chapter. (b) Non-paymentpenalty. Failure to pay the license fee within ninety (90) days after the date of expiration, pursuant to BMC 5.02.120, shall subject the licensee to a monetary penalty in the amount of fifty dollars ($50) to reinstate the license, in addition to the required license fee. (c) Civil penalties. In addition to any violation set forth in Chapter 3.86 relating to the administration of this chapter, any violation of BMC 5.02.190(a) constitutes a civil violation under chapter 1.04 BMC for which a monetary penalty may be assessed and enforcement may be required as provided therein. (d) Criminal penalties. In addition to the foregoing penalties or any violation set fortl~ in Chapter 3.86 relating to the administration of this chapter, any person who violates or fails to comply with BMC 5.02.190(a) shall, upon conviction, be punished as described in the general criminal penalty provisions of BMC 1.12.020(2). Such person will be guilty of this violation for each day, or portion thereof, during which the business is so engaged or carried on. SECTION3. Severabili~_. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. 6 General Business Licenses SECTION 4. Effective Date. This ordinance shall take effect and be in force ~en (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2002 PASSED by the City Council the day of ,2002 CAROL ARENDS, Council President Approved this day of ,2002 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the EFFECTIVE the ORDINANCE NO. day of ,2002 day of ,2002 R?~LEGAL\Ordinances~dministration~B&O and Utility Tax'~BMC 5.02 Business Licenses.doc 7 General Business Licenses AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORDINANCE RELATING TO BUSINESS AND ORIGINATING DEPT: City Attorney's Office OCCUPATION TAXES ORIGINATOR: Roger A. Lubovich DATE SUBMITTED: Nov. 22, 2002 2. CLEARANCES: (Comment on back if necessary) LUSKEY, Director of Administrative Services ~O~.. ~OVICH, City Atto~n~ FISCALIBUDO~T CHAIRMAN OPERATIONS CHAIRMAN ENDORSE~ 3. EXHIBITS: PROPOSED ORDINANCE Nov. 15, 2002 Correspondence from Association of Washington Cities Model B&O Tax Legislative Intent APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance updates the BMC provisions relating to business and occupation taxes; separates the provisions of the BMC related to business and occupation taxes from those related to business-licenses and utility taxes; and establishes provisions relating to the administration of same. - 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading. 7. NOTICE OF ACTION: COUNCIL DIRECTIVE: APPROVED 6. RESPONSIBLE OFFICIAL: City Clerk ENFORCEMENT OFFICIAL: City Clerk EXPIRATION DATE: n/a REVIEW DATE: fda DISAPPROVED [--] AMENDEq~ 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: November 15, 2002 ASSOCIATION OF WASHINGTON CITIES 1076 Franklin St. SE Olympia, WA 98501-1346 Phone: 360-753-4137 Toll Free: 1~800-562-8981 Fax: 360-753-0149 Website: www. awcnet.org Mayor Cary Bozeman City of Bremerton 239 - 4th St Bremerton, WA 98337 Dear ~n: Many of you have assisted AWC's efforts over the last few years to fight back legislation that would have seriously impaired city tax and licensing authority. Each year it has been increasingly difficult to defeat these billS. We expect that city B&O taxes will be under significant attack again in 2003. There is a very real threat that these efforts will be successful unless cities address perceived problems with our current business tax structure by adopting the Model City B&O Tax Ordinance. Governor LoCke has already commented in a speech to business interests that a city B&O tax reform bill almost passed in 2002 and that he was confident a reform bill was needed and would be approved in the 2003 session. We have contacted the Governor's office and hope to meet with him on this issue soon. AWC and B&O tax cities worked together over the past several years to develop the Model Ordinance to make city B&O taxes simpler and more uniform, and to eliminate any possibility of multiple taxation. The group also developed a "streamlined" version of the ordinance for smaller cities. Many B&O tax cities have already begun the process of adopting the Model Ordinance. Everett and Seattle already have adopted the Model Ordinance, and Bellevue, Tacoma, and Bellingham plan to adopt it by the end of the year or shortly thereafter. This means that the five jurisdictions collecting more than 90% of municipal B&O taxes in this state will have it on their books before the start of the 2003 Legislature. However, it is essential that as many of the 37 B&O tax cities as possible enact the ordinance prior to the start of the 2003 session in order to counter ar.quments about statewide uniformity. Attached are copies of the Model Ordinance, the streamlined version, and the accompanying administrative rules. Once your city has adopted the Model Ordinance, please inform AWC so that we can keep track of the statewide progress on this important issue. 15¥ Mayor Cary Bozeman Page 2 November 15, 2002 Again, AWC' strongly urges your city to review and adopt the Model Ordinance so that cities can protect their local authority over business taxes and license fees. Please feel free to contact me, Jim Justin, or Sheila Gall at (360) 753-4137 if you have any questions on this issue. Sincerely, Stan Finkelstein AWC Executive Director SF/sg:jb Enclosures: City B&O Model Ordinance cc: Rich Hanna G:~JF_N~B&O~2002~I 11502 B&O L~] [ER,DOC /5-5' Office of the City Attorney Roger A. Lubovich, City Attorney City Council Roger A. Lubow B&O Tax Ordinance December 5, 2002 AWC has strongly recommended that cities, large and small, adopt a minimum taxable gross income threshold of $20,000 as part of the Model City B&O Tax Ordinance. This threshold would exempt the first $20,000 of gross income from B&O taxes. Realizing that this may not be revenue neutral for smaller cities whose tax base is made up of small businesses, AWC is encouraging those cities, who do not adopt the threshold immediately as part of the new tax code, study this issue and consider implementation of the threshold phased in over three to five years. Since our proposed ordinance does not include the threshold, I recommend that, in the near future, we study and consider AWC's recommendation of implementation of a minimum taxable gross income threshold. R:\LEGALhMemosXB&O memo.doc MODEL B&O TAX LEGISLATIVE INTENT 3.48.020 Exercise of revenue license power. Legislative intent information. This section implements Washington Constitution Article XI, Sec. 12 and RCW 35A.82.020 and 35A. 11.020 (code cities); 35.22.280(32) (first class cities); RCW 35.23.440(8) (second class cities); 35.27.370(9) (fourth class cities and towns), which give municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. See Enterprise Leasing v. Cit~ of Tacoma, 139 Wn.2d 546 (1999). It is intended that this model ordinance be uniform among the various municipalities adopting it. Uniformity with provisions of State tax laws should not be presumed, and references in this section to statutory or administrative rules changes do not mean state tax statutes or rules promulgated by the Department of Revenue. 3.48.028 Administrative Provisions. Legislative intent information. Some of the definitions in this model ordinance are similar or identical to the definitions in the State taxing statutes; some are not. It is intended that the similar or identical language be understood and interpreted in accordance with published case law governing its meaning, if any, existing at the time the ordinance is adopted. The municipalities do not intend to adopt or incorporate administrative interpretations of similar language by the Department of Revenue, whether now existing or later promulgated, unless specifically required by the RCW. 3.48.030 Definitions "Software", "canned software," "custom software," "customization of canned software," "master copies," "retained rights." Legislative intent information A software program is intangible property that may be delivered to consumers via tangible or intangible media. It is intended that the taxation of the development, production, and licensing of software programs not be detern~ned by the method by which they are delivered, whether by tangible media or electronically. The model ordinance classifies software development, production, and licensing for tax purposes on the basis of whether the program was developed for the mass market or at the behest of a particular customer. Software is defined as either "custom" or "canned" regardless of the method of delivery. 3.48.040 Agency - sales and services by agent, consignee, bailee, factor or auctioneer. Legislative intent information. A person is taxable on all gross income it receives unless it can prove that the gross income does not belong to the person, or a specific deduction or exemption is provided. A taxpayer that receives gross income as an agent is not liable to pay tax on those gross receipts only if it ~meets the criteria of this section. This section is specifically designed to set out criteria that is somewhat different than the criteria established by the Washington State Department of Revenue Rule 111 and the cases interpreting that rule. 1 MODEL B&O TAX LEGISLATIVE INTENT 3.48.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes. Legislative intent information. This section provides a tax credit for taxpayers engaged in multiple taxable activities. The section provides a credit against eligible selling or manufacturing taxes imposed by the City for extracting or manufacturing taxes paid to the City or to any other local jurisdiction with respect to the same products. The tax credit does not depend upon whether a person that sells in the City extracts or manufactures in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The tax credit does not depend on whether a person that manufactures in the City extracts in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The credit is available to any person that pays an eligible gross receipts tax on the applicable activities, regardless of where it conducts business. The result of this section is that a city in which selling takes place gives up the tax to the manufacturing jurisdiction and the manufacturing jurisdiction gives up the tax to the extracting jurisdiction, whether those jurisdictions are inside or outside the State of Washington. 3.48.075 Deductions to prevent multiple taxation of transactions involving more than one city with an eligible gross receipts tax. Legislative intent information. This section establishes deductions to be applied when a single taxable activity is taxable by more than one jurisdiction that imposes an eligible gross receipts tax. Under Washington State Law, more than one city that has established nexus can include 100% of the gross receipts from that transaction in its tax base. However to eliminate the possibility of the same sale or service being taxed more than once by cities that maintain nexus and an eligible gross receipts tax, the cities have provided this deduction to taxpayers. Sales. A taxpayer that has paid an eligible gross receipts tax on the sale to the jurisdiction where the product is delivered may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on the sale. If a taxpayer has not paid tax to the jurisdiction where the product is delivered, then no deduction is allowed. The sale shall be taxed by the city where the office or place of business that generated the sale is located. Service. A taxpayer that has paid an eligible gross receipts tax on services to the jurisdiction where the service is performed may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on that service. If a taxpayer has not paid tax to the jurisdiction where the service is performed, then no deduction is allowed. The service income shall be taxed by the city where the office or place of business that generated the sale is located. For both sales and services, the order of taxing rights is delivery city, first; and business office location, second. General Business Activities Other Than Services. The eligible gross receipts tax on income derived from intangibles such as royalties, licenses, trademarks, patents and goodwill, and reportable under the general business classification BMC 3.48.050(1)(g), shall be assigned to the headquarter's office or business location. A taxpayer that has paid an eligible gross receipts tax on such activities to the jurisdiction where the taxpayer maintains a headquarters office, may deduct the gross receipts used to measure that tax from the measure of the tax owed to other jurisdictions on the same activity. Business Conducted With Other Cities. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with a city may deduct the contract price used to measure the tax from the measure of the tax owed to another city on the same activity. 2 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating a new chapter of the Bremerton Municipal Code, Chapter 3.48 entitled "Business and Occupation Taxes" separating the provisions relating to business and occupation taxes from those related to business licenses and utility taxes and further updating the provisions relating to business and occupation taxes and providing for new provisions relating to the administration of same. WHEREAS, the provisions relating to business licenses, business and occupation taxes, and utility taxes are contained in one chapter of the Bremerton Municipal Code; and WHEREAS, separating business license, business and occupation taxes and utility taxes into separate chapters and creating another chapter relating to the administration of said codes in this ordinance and in companion ordinances considered concurrently with this ordinance, would assist in the interpretation and administration of the various provisions related to each code; and WHEREAS, the City Council desires to create a new chapter relating to business and occupation taxes based on the model tax code established through the Association of Washington Cities for the purpose of creating a uniform system for application of the business and occupation taxes and the administration of the same; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON,~WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A new chapter, Chapter 3.48 is hereby added to the Bremerton Municipal Code entitled "Business and Occupation Taxes" to read as follows: CHAPTER 3.48 BUSINESS AND OCCUPATION TAXES 3.48.020 Exercise Of Revenue License Power. The provisions of this chapter shall be deemed an exercise of the power of the City to license and/or tax for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code. B&O Taxes 3.48.025 Business License - Required. It is unlawful for any person to engage in business in the City without having first obtained a business license pursuant to Chapter 5.02 BMC. 3.48.028 Administrative Provisions. The provisions contained in chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 3.48.030 Definitions. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. "Agricultural product," "farmer." (1) "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: A product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.83.480; plantation Christmas trees; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.83.480, or a bird, or insect, or the substances obtained from such an animal. "Agricultural product" does not include animals intended to be pets. (2) "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. "Artistic or cultural organization". As used in this chapter: (1) The term "artistic or cultural organization" means an organization which is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (10) of this section, for viewing or attendance by the general public. (2) The organization must be a not-for-profit corporation under chapter 24.03 RCW. (3) The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation sole under chapter 24.12 RCW. (4) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws. / ~ o B&O Taxes (5) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the state. (6) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a non- profit organization, association, or corporation which also would be entitled to the exemption. (7) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation. (8) The amounts received that qualify for exemption must be used for the activities for which the exemption is granted. (9) Services must be available regardless of race, color, national origin, ancestry, religion, age, sex, marital status, sexual orientation, Vietnam or disabled veteran status, or the presence of any mental or physical disability. (10) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to: (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums; (b) A musical or dramatic performance or series of performances; or (c) An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject. "Business." "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. "Cash discount." "Cash discount" means a deduction from the invoiced amount allowed by the seller if the bill is paid within a certain time period or before a specified date. "City." "City" means City of Bremerton, Washington. "Commercial or industrial use." "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof: ~ (1) Any use as a consumer; (2) Any use in the manufacturing of products including articles, substances or commodities; or (3) Consigning, shipping or transferring extracted or manufactured products to another either without consideration or in the performance of contracts. "Competitive telephone service." "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. "Consumer." "Consumer" means the following: (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) resale as tangible or intangible personal property in the regular course of business; (b) incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; I~ { B&O Taxes (c) incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under BMC 3.48.050(1)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in BMC 3.48.030 other than for resale in the regular course of business; (5) Any person who is an end user of software; (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly-owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right-of-way of a publicly-owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly-owned mass public transportation terminal or parking facility; (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in "government contracting." Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person; Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of "consumer." "Deficiency." "Deficiency" means the amount of tax imposed by law less any tax reported by the taxpayer on a tax return. "Director." "Director" means the Director of Finance of the City or any officer, agent or employee of the City designated to act on the Director's behalf. "Eligible gross receipts tax." The term "eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within section .050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a Country, State, Province, or any other non-local jurisdiction above the County level. [ {o~- B&O Taxes "Engaging in business" - "nexus" (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. (a) Owning, renting, leasing, maintaining, or having the fight to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (c) Soliciting sales. (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training or recruiting employees, agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. I [o 3 B& 0 Taxes (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (q) Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person's office or place of business is within or without the City. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license and pay tax. (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. (d) Renting tangible or intangible property as a customer when the property is not used in the City. (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Mere delivery of goods via common carrier. (5) A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license provided that it engages in no other business activities in the City. (6) "Nexus" A person has created nexus with the City if, whether itself or by its employees, agents, representative, independent contractors, brokers or others acting on its behalf, it: (a) is physically present in the City; (b) endeavors to maintain a share of the market within the City; or (c) avails itself of the economic benefits of the City. The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. "Extractor." "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, or takes, cultivates, or raises shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; persons cultivating or raising fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession; or persons who fell, cut, or take 6 [(o t~ B&O Taxes plantation Christmas trees from the person's own land or from land in which the person has a present right of possession. "Extractor for Hire" "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. "Government contracting." "Government contracting" means the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to RCW Chapter 35.82, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. The term shall include the clearing of land and the moving of earth of or for the Untied States, any instrumentality, thereof, or a county of city housing authority. "Gross income of the business." "Gross income of the business" means the value proceeding or accruing by reason of the of the business activity engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "Gross proceeds of sales." "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property or for services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "In this City," "within this City." "In this City" or "within this City" includes all federal areas lying within the corporate city limits of the City. "Janitorial Services." The term "Janitorial Services" shall mean those cleaning and care taking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal, sandblasting, or cleanup related to construction activities. "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire and not a manufacturer. A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: 7 I (o ~ B& 0 Taxes (a) the production of special made or custom made articles; (b) the production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) crashing and/or blending of rock, sand, stone, gravel, or ore; and (d) the producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "Newspaper," "magazine," "periodical." "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. "Magazine, or periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. "Non-profit corporation or non-profit organization." "Non-profit corporation or non-profit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended. Where the term non-profit organization is used, it is meant to include a non-profit corporation. "Office", "place of business." "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over which the person exercises legal dominion and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address, (2) Containing a telephone line listed in a public telephone directory or other similar publication under the business name; and (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate state and local business license or registration unless they are exempted by law from such requirement. A vehicle such as a pick-up, van, track, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of business above. If a person has no office or place of business, the person's home or apartment within the City will be deemed the place of business. "Person." "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as 8 I (o {e B&O Taxes a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States or any instrumentality thereof. "Precious metal bullion or monetized bullion." "Precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art. "Processing for hire." "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty percent (20%) or more of the total value of all materials or ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire. "Product", "Byproduct." "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. "Byproduct" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. "Public road construction." "Public road construction" means the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or a political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. "Reporting period." "Reporting period" means: (1) A one-month period beginning the first day of each calendar month (monthly); or (2) A three-month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve-month period beginning the first day of January of each year (annual). Retail Service. "Retail service" shall include the sale of or charge made for personal, .business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not I ~'~ B&O Taxes include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Service charges associated with tickets to professional sporting events; and (5) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services. (6) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. "Return." "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. "Royalties." "Royalties" means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale, or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale 10 Taxes of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under BMC 3.48.050(1)(g). (3) "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installir[g or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, o~: improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services, which is taxed as a service in this chapter; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW; (f) The sale of and charge made for the furnishing of lodging and all other services, except network telephone service and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same; (g) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), and (f) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection. 11 [ {e c~ B&O Taxes (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5) "Sale at retail" or "retail sale" shall also include the sale of canned software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to "public road construction." (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to "government contracting." (8) "Sale at retail" or "retail sale" shall also include automobile parking and storage garage services; (9) "Sale at retail" or "retail sale" shall also include landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; (10) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. This is reported under the service or other classification). (11) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action as defined in RCW 82.04.2635(2) (This is reported under the service and other classification). "Sale at wholesale," "wholesale sale." "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale when rendered to or for consumers. Sale at wholesale also includes the sale of network telephone service to a telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. "Software", "canned software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Canned software" means software that is created for sale to more than one (1) person. For purposes of this chapter, canned software is deemed to be tangible personal property regardless of the method of delivery-tangible media (e.g., disk or installed on hardware) or intangible (e.g., electronically over telecommunications paths). (2) "Custom software" means software created for a single person. (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of canned software does not change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. 12 ~ ~.c> B&O Taxes The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom. "Successor." "Successor" means any person to wh°m a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. "Taxpayer." "Taxpayer" means any "person", as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or wl~o engages in any business or who performs any act for which a tax or fee is imposed by this chapter. "Tax year," "taxable year." "Tax year" or "taxable year" means the calendar year. "Tuition fee." "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a non-profit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. "Value proceeding or accruing." "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. The value proceeding or accruing from sales on the installment plan under conditional contracts of sale shall be reported as of the dates when the payments become due. 13 I'~ I B&O Taxes "Value of products." (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. 3.48.040 Agency - Sales And Services By Agent, Consignee, Bailee, Factor Or Auctioneer. (1) Sales in own name - sales or purchases as agent. Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person's own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter. The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship ~of principal and agent and when the following conditions are complied with: (a) The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made. (b) The books and records show the amount of the principal's gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales. The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. 14 ~ '~ ~ B&O Taxes (c) No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales. (d) Bulk goods sold or purchased on behalf of a principal must not be co-mingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been co-mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales. (2) If the above requirements are not met the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer. (3) Services in own name - procuring services as agent. For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured. Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions ~e complied with: (a) The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made. (b) The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. 3.48.050 Imposition Of The Tax - Tax Or Fee Levied. (1) Tax Levied. There is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: (a) Extractor. Upon every person engaging within the City in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use, multiplied by the rate of one and six-tenths of one percent (.0016). The measure of the tax is the 15 I ~ 3 B&O Taxes value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (b) Manufacturer. Upon every person engaging within the City in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured, multiplied by the rate of one and six-tenths of one percent (.0016). The measure of the tax is the value of the products, including by-products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (c) Wholesale. Upon every person engaging within the City in the business of making sales at wholesale, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and six-tenths of one percent (.0016). (d) Retail. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and one quarter of one percent (.00125). (e) Printing and Publishing. Upon every person engaging within the City in the business of (i) printing, (ii) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (iii) publishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one and nine- tenths of one percent (.0019). (f) Retail service. Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of two tenths of one percent (.002). (g) Service. Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of two tenths of one percent (.002). This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail or a sale at wholesale. (2) Any person engaging in any business activity within the City shall pay, on a quarterly basis, the greater of five ($5) dollars or the occupation tax, if any, imposed by this chapter, unless such 16 [ "'J ~ B&O Taxes person makes an annual return with the approval of the Director. Any person making an annual return shall pay, on an annual basis, the greater of twenty ($20) dollars or the occupation tax, if any, imposed by this chapter. Exempt from this minimum quarterly occupation tax are nonprofit organizations whose occupation tax liability is less than five ($5) dollars for any one quarter. (3) The tax levied pursuant to this chapter shall be in addition to any other tax or fee that may be imposed or levied by the City of Bremerton. 3.48.060 Doing Business With The City. Except where such a tax is otherwise levied and collected by the City from such person, there is hereby levied a tax on the privilege of accepting or executing a contract with the City. Such tax shall be levied and collected whether goods or services are delivered within or without the City and whether or not such person has an office or place of business within or without the City. As to such persons the amount of tax shall be equal to the gross contract price multiplied by the rate under BMC 3.48.050 that would otherwise apply if the sale or service were taxable pursuant to that section. 3.48.070 Multiple Activities Credit When Activities Take Place In One Or More Cities With Eligible Gross Receipt Taxes. This section provides a tax credit for taxpayers engaged in multiple taxable activities. The section provides a credit against eligible selling or manufacturing taxes imposed by the City for extracting or manufacturing taxes paid to the City or to any other local jurisdiction with respect to the same products. The tax credit does not depend upon whether a person that sells in the City extracts or manufactures in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The tax credit does not depend on whether a person that manufactures in the City extracts in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The credit is available to any person that pays an eligible gross receipts tax on the applicable activities, regardless of where it conducts business. The result of this section is that a city in which selling takes place gives up the tax to the manufacturing jurisdiction and the manufacturing jurisdiction gives up the tax to the extracting jurisdiction, whether those jurisdictions are inside or outside the State of Washington. (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of BMC 3.48.050 shall be taxable under each applicable subsection. (2) Notwithstanding anything to the contrary herein, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied and that the taxpayer paid the amount of tax sought to be credited. 17 ['3 ~ B& 0 Ta~es (4) Credit for persons that sell in the City products that they extract or manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the City, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. (5) Credit for persons that manufacture products in the City using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. (6) Credit for persons that sell within the City products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. 3.48.075 Deductions To Prevent Multiple Taxation Of Transactions Involving More Than One City With An Eligible Gross Receipts Tax. This section establishes deductions to be applied when a single taxable activity is taxable by more than one jurisdiction that imposes an eligible gross receipts tax. To eliminate the possibility of the same sale or service being taxed more than once by cities that maintain nexus and an eligible gross receipts~tax, the cities deductions set forth in this section shall apply. Sales. A taxpayer that has paid an eligible gross receipts tax on the sale to the jurisdiction where the product is delivered may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on the sale. If a taxpayer has not paid tax to the jurisdiction where the product is delivered, then no deduction is allowed. The sale shall be taxed by the city where the office or place of business that generated the sale is located. Service. A taxpayer that has paid an eligible gross receipts tax on services to the jurisdiction where the service is performed may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on that service. If a taxpayer has not paid tax to the jurisdiction where the service is performed, then no deduction is allowed. The service income shall be taxed by the city where the office or place of business that generated the sale is located. For both sales and services, the order of taxing rights is delivery city, first; and business office location, second. General Business Activities Other Than Services. The eligible gross receipts tax on income derived from intangibles such as royalties, licenses, trademarks, patents and goodwill, and reportable under the general business classification BMC 3.48.050(1)(g), shall be assigned to the headquarter's office or business location. A taxpayer that has paid an eligible gross receipts tax on such activities to the jurisdiction where the taxpayer maintains a headquarters office, may 18 {"l ~, B& 0 Taxes deduct the gross receipts used to measure that tax from the measure of the tax owed to other jurisdictions on the same activity. Business Conducted With Other Cities. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with a city may deduct the contract price used to measure the tax from the measure of the tax owed to another city on the same activity. (1) Amounts subject to an eligible gross receipts tax in another city that also maintains nexus over the same activity. A taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows: (a) A taxpayer that has paid an eligible gross receipts tax with respect to a sale of goods or services to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City. (b) Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill may deduct from the measure of the tax on those amounts the gross income used in measuring the eligible gross receipts tax paid to the other jurisdiction where the headquarters is located. (c) A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City. (2) Person manufacturing products within and without. A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid with respect to manufacturing such products. 3.48.090 Exemptions. (1) Non-Profit Corporations Or Non-Profit Organizations. This section shall not apply to non- profit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons. (2) Health maintenance organization, health care service contractor, certified health plan. Beginning on January 1, 2000 this chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. (3) Public utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 3.50 BMC. 19 B&O Taxes (4) Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. (5) International banking facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). (6) Insurance business. This chapter shall not apply to amounts received by any person or agent who is an insurer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020; provided that the provisions of this subsection shall not exempt any person engaging in the business of insurance as a broker as defined in RCW 48.17.020 or as a solicitor as defined in RCW 48.17.030; and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (7) Farmers - agriculture. This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons. (8) Athletic exhibitions. This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. (9) Racing. This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission. (10) Ride sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. (11) Employees. This chapter shall not apply to: 20 I ~ ~ B&O Taxes (a) Any person in respect to the person's employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter, as defined by RCW 18.16.020, is an independent contractor for purposes of this chapter. (12) Amounts derived from sale of real estate. This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exempthon of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. (13) Mortgage brokers' third-party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (14) Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempt under RCW 82.36.440, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (15) Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (16) Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. (17) Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen days to reimburse in kind a previous accommodation sale by the buyer to the seller. (18) Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. (19) Renting and/or leasing property. This chapter shall not apply to renting and/or leasing of real property as defined in Chapter 5.02 BMC. 21 [ ~ ~ B&O taxes 3.48.100 Deductions. In computing the license fee or tax, there may be deducted from the measure of tax the following items: (1) Compensation from public entities for health or social welfare services - exception. In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social: welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 USC Sec. 1071 et seq., as amended, or amounts payable pursuant thereto. (2) Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non-transient residential properties. (3) Interest on obligations of the state, its political subdivisions, and municipal corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof. (4) Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities. (5) Receipts from tangible personal property delivered outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is received by the purchaser or its agent outside the State of Washington. (6) Cash discount taken by purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions. 22 B&O Taxes (7) Credit losses of accrual basis taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (8) Repair, maintenance, replacement, etc., of residential structures and commonly held property - eligible organizations. (a) In computing tax, there may be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held property, but excluding property where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by: (i) A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership; (ii) An association of owners of property as defined in RCW 64.32.010, as now or hereafter amended, from a person who is an apartment owner as defined in RCW 64.32.010; or (iii) An association of owners of residential property from a person who is a member of the association. "Association of owners of residential property" means any organization of all the owners of residential property in a defined area who all hold the same property in common within the area. (b) For the purposes of this subsection "commonly held property" includes areas required for common access such as reception areas, halls, stairways, parking, etc., and may include recreation rooms, swimming pools and small parks or recreation areas; but is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc. (c) To qualify for the deductions under this subsection: (i) The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to the salary or compensation of like positions within the county wherein the property is located; (ii) Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be rebated to the members of the association; (iii) Assets of the association or organization must be distributable to all members and must not inure to the benefit of any single member or group of members. (9) Sales at wholesale or retail of precious metal bullion and monetized bullion. In computing tax, there may be deducted from the measure of the tax amounts derived from the sale at wholesale or retail of precious metal bullion and monetized bullion. However, no deduction is 23 1 81 B ,o taxes allowed on amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, and no deduction or offset is allowed against such commissions on account of salaries or commissions paid to salesmen or other employees. (I0) Amounts representing rental of real estate for boarding homes. In computing tax, there may be deducted from the measure of tax amounts representing the value of the rental of real estate for "boarding homes." To qualify for the deduction, the boarding home must meet the definition of "boarding home, and licensed by the State of Washington under RCW 18.20. The deduction shall be in the amount of twenty~five percent (25%) of the gross monthly billing when the boarder has resided within the boarding home for longer than thirty (30) days. (11) Radio and television broadcasting - advertising agency fees - national, regional, and network advertising - interstate allocations. In computing tax, there may be deducted from the measure of tax by radio and television broadcasters amounts representing the following: (a) advertising agencies' fees when such fees or allowances are shown as a discount or · price reduction in the billing or that the billing is on a net basis, i.e., less the discount; (b) actual gross receipts from national network, and regional advertising or a "standard deduction" as provided by RCW 82.04.280; and (c) local advertising revenue that represent advertising which is intended to reach potential customers of the advertiser who are located outside the State of Washington. The Director may issue a role that provides detailed guidance as to how these deductions are to be calculated. (12) Constitutional prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States. 3.48.120 Tax Part Of Overhead. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. 3.48.125 Rules and Regulations. The Director may establish administrative roles and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. 3.48.130 Severability Clause. If any provision of this chapter or its application to any person or cimumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. 24 [ ~ o~. B& 0 Taxes SECTION 2. Section 1 of this ordinance shall take effect and be in force on January 1, 2003. SECTION 3. Severabili~_. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the PASSED by the City Council the day of ,2002 day of ,2002 Approved this day of CAROL ARENDS, Council President ,2002 ATTEST: CARY BOZEMAN, Mayor APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of ,2002 EFFECTIVE the day of ,2002 ORDINANCE NO. R:~LEGAL\Ordinances~AdministrationkB&O and Utility TaxXBMC 3.48, B & O Tax .doc 25 B&O Taxes AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORDINANCE RELATING TO UTILITY TAXES ORIGINATING DEPT: City Attorney's Office ORIGINATOR: Roger A. Lubovich DATE SUBMITTED: Nov. 20, 2002 ROe 2. CLEARANCES: (Comment on back if necessary) KAT~EEN McCLUSKE'~,, Director of Administrative Services F~ ~L ~AN OPE~TIONS CHAPMAN 3. EXHIBITS: PROPOSED ORDINANCE APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance updates the BMC provisions relating to utility taxes; separates the provisions of the BMC related to utility taxes from those related to business licenses and business and occupation taxes; and establishes new tax rates for certain utilities. 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading. 7. NOTICE OF ACTION: PULLED [-~ TABLED [-~ COUNCIL DIRECTIVE: APPROVED ~-] e RESPONSIBLE OFFICIAL: City Clerk ENFORCEMENT OFFICIAL: City Clerk EXPIRATION DATE: n/a REVIEW DATE: n/a DISAPPROVED [] AMENDED Se AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating a new chapter of the Bremerton Municipal Code, Chapter 3.50 entitled "Utility Taxes," separating the provisions related to utility taxes from those related to business licenses and business and occupation taxes; updating the provisions relating to utility taxes; providing for new provisions relating to the administration of the same; and further establishing new tax rates for certain utilities. WHEREAS, the provisions relating to business licenses, business and occupation taxes, and utility taxes are contained in one chapter of the Bremerton Municipal Code; and WHEREAS, separating business license, business and occupation taxes and utility taxes into separate chapters and creating another chapter relating to the administration of said codes in this ordinance and in companion ordinances considered concurrently with this ordinance, would assist in the interpretation and administration of the various provisions related to each code; and WHEREAS, the City Council desires to create a new chapter relating to utility taxes; update provisions relating to utility taxes; provide new provisions for the administration of the same; and establish new tax rates for certain utilities; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A new chapter, Chapter 3.50, entitled "Utility Taxes" is hereby added to the Bremerton Municipal Code to read as follows: CHAPTER 3.50 UTILITY TAXES 3.50.010 Exercise of revenue license power. The provisions of this chapter shall be deemed an exercise of the power of the City to license and/or tax for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or roles. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code. 3.50.020 Business License - Required. It is unlawful for any person to engage in business in the City without having first obtained a business license pursuant to Chapter 5.02 BMC. 1 Utility Taxes 3.50.030 Administrative Provisions. The provisions contained in chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 3.50.040 Definitions. For the purposes of this chapter, the definitions contained in chapter 3.48 BMC shall apply equally to the provisions of this chapter as applicable unless the term is defined otherwise in this chapter. In addition, the following definitions will apply: "Cellular telephone service" is a voice or data telephone/telecommunications system based in whole or substantial part on wireless radio communications, whether or not the communications are subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. Cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes the same purpose as cellular mobile service. "Competitive telephone service" means the providing by any person of telephone telecommunications equipment or apparatus, or service related to that equipment or apparatus such as a repair and maintenance service, if the equipment or apparatus is of a type which can be provided by persons who are not subject to regulation as telephone companies under Title 80 RCW, and for which a separate charge is made. "Gross income" means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees, or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses. "Gross income from timber sales" means "stumpage value of timber" as defined in Chapter 84.33 RCW minus the costs of production including, but not limited to logging and tracking costs, fees and excise taxes. "Page service" means service provided by means of an electronic device that has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission. "Reporting period" means a one-month period beginning the first day of each calendar month (monthly). "Solid waste collection service" means receiving solid waste from any facility or location within the City for transfer, processing, treatment, storage, or disposal, including, but not limil~ed to, all collection services, public or private dumps or landfills, transfer stations, and other similar operations. "Solid waste," for purposes of this subsection, means garbage, trash, rubbish, or other material discarded as worthless or not economically viable for further use, infectious, hazardous, or toxic wastes, and recyclable or reusable materials collected, in whole or part, for recycling or salvage. "Telephone business" means the providing by any person of access to a local telephone network, local telephone network switching service, toll service, cellular or mobile telephone service, coin telephone services, page service, or the providing of telephonic, video, data, or 2 t187 Utility taxes similar communication, or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. The term includes cooperative or farmer line telephone companies or associations operating exchanges. The term also includes the provision of transmission to and from the site of an intemet provider via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Telephone business" does not include the providing of competitive telephone service, or providing of cable television service, or other providing of broadcast services by radio or television stations. 3.50.050 Persons subject to tax - Amount. In addition to other taxes or fees that may be imposed or levied by the City, there is hereby levied upon all persons (including the City) engaging in business within the City, a fee or tax to be collected as follows: (a) Gas. Upon every person engaging in the business of transmitting, distributing or the selling of manufactured or natural gas, a fee or tax equal to six (6) percent of the total gross income from such business conducted within the City. (b) Water. Upon every person engaging in the business of providing water utility service, a fee or tax equal to seven (7) percent of the total gross income from such business conducted within the City. The total gross income from the business of providing water utility service includes the "gross income from timber sales" of the utility as that term is defined in this chapter. (c) Wastewater. Upon every person engaging in the business of providing wastewater utility service, a fee or tax equal to seven (7) percent of the total gross income from such business conducted within the City. (d) Stormwater. Upon every person engaging in the business of providing stormwater utility service, a fee or tax equal to seven (7) percent of the total gross income from such business conducted within the City. (e) Cable. Upon every person engaging in the business of transmitting television signals by means of a cable distribution system commonly known as television cable service, a fee or tax equal to seven (7) percent of the total gross income from such business conducted within the City. (f) Solid waste. Upon every person engaging in the business of providing solid waste collection service, a fee or tax equal eleven (11) percent of the total gross income from such business conducted within the City. (g) Electricity. Upon every person engaging in the business of producing, transmitting, distributing or selling electricity, a fee or tax equal to six (6) percent of the total gross income from such business conducted within the City. (h) Telephone. Upon every person engaged in carrying on a telephone business for hit~e or for sale of a commodity or a service within or partly within the corporate limits of the City, a Utility Taxes tax for the privilege of so doing business a tax equal to six percent (6%) of the total gross income rendered within the City. (1) "Deductions" In computing the telephone tax, there shall be deducted from the gross operating revenues the following items: (i) Amounts derived from transactions in interstate or foreign commerce or from any business which the City is prohibited from taxing under the Constitutions of the United States or the State of Washington. (ii) Amounts derived from that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges or carder access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services or charges for network telephone service that is purchased for the purpose of resale. (iii) Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of a customer. (iv) A complete deduction from gross income shall be allowed for credit losses, only to cellular telephone service companies which keep their regular books of account on an accrual basis, for cash discounts and credit losses actually sustained by a taxpayer as a result of telephone service business. (2) Allocation of Income - Cellular Telephone Service. (i) Service address: Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer's principal service address during the period for which the tax applies. (ii) Roaming phones: When the service is provided while a subscriber is roaming outside the subscriber's normal cellular network area, the gross income shall be assigned consistent with the taxpayer's accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. 3.50.060 Deductions. (a) There may be deducted from the total gross income, upon which the license fee or tax is computed, revenues derived from business which the City is prohibited from taxing under the constitution or laws of the state of Washington or the United States or the Charter of the City. (b) There may be deducted from the total gross income, upon which the license fee or tax is computed, the amount of state excise taxes, pursuant to RCW 82.18, imposed directly upon 4 Utility Taxes persons using the service of a solid waste collection business and collected for payment to the state by the solid waste collection business. (c) There may be deducted from the total gross income, upon which the license fee or tax is imposed under Section 3.50.050, revenues derived from providing the service of collecting recyclable materials, as follows: (1) commercial recycling: revenues derived from the service of collecting commercial recyclable materials. This exemption is limited to materials actually resold and computed in proportion to weight, as follows: (i) any weight added by processing or treatment after collection is subtracted from the weight as sold to obtain the allowable weight as sold; and (ii) revenues are multiplied by a fraction, the numerator of which is the allowable weight as sold and the denominator of which is the weight as collected. (2) This deduction does not apply to any energy recovery or fuel-use process, nor in any case where materials collected have not been sold for commercial reuse within 100 days from the date of collection. This period may be extended when a taxpayer shows to the Department's satisfaction that market conditions necessitate a longer period for sale. 3.50.070 Rules and Regulations. The Director may establish administrative roles and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. 3.50.080 Severability. If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions, and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. SECTION 2. The rates set forth in Section 3.50.050 of Section 1 of this Ordinance shall be effective January 1, 2003 and the rates in effect as set forth in Section 5.02.070 immediately prior to its repeal and the adoption of this Ordinance shall remain in effect until January 1, 2003. SECTION3. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. 5 [ ?o t tility Taxes APPROVED by the City Council the PASSED by the City Council the day of day of ,2002 ,2002 CAROL ARENDS, Council President Approved this day of ,2002 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the EFFECTIVE the ORDINANCE NO. day of ,2002 day of ,2002 RALEGAL\Ordinances~Administration~B&O and Utility Tax~BMC 3.50, Utility Tax .doc 6 Utility Taxes 1. SUBJECT: ORDINANCE RELATING TO ADMINISTRATIVE PROVISIONS FOR TAXES AGENDA BILL BREMERTON CITY COUNCIL PUBLIC HEARING ON FOR AGENDA: Dec. 11 and Dec. 18, 2002 ORIGINATING DEPT: City Attorney's Office ORIGINATOR: Roger A. Lubovich DATE SUBMITTED: Nov. 22, 2002 2. CLEARANCES: (Comment on back if necessary) of Administrative Services 1~i~ LU~IOVIC~, City Attorney F IRMAN OPERA"PIO~ ~-I~AIRMAN ENDORS~ MAYOR ~ '-'-r--7 "~91~ATION [~] 3. EXHIBITS: PROPOSED ORDINANCE APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance creates a new BMC chapter, which establishes new provisions for the administration of City codes relating to business licenses, business and occupation taxes, utility taxes, and other City codes making reference to said chapter. ~ 5. RECOMMENDATION: Move to approve the proposed ordinance on first reading. Move to pass Ordinance No. on second reading. 7. NOTICE OF ACTION: PULLED [] TABLED [--] COUNCIL DIRECTIVE: APPROVED [--] 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED [--1 AMENDED ~T~7~ 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating a new chapter of the Bremerton Municipal Code, Chapter 3.86 entitled "Administrative Provisions for Taxes" establishing new provisions for the administration of City codes relating to business licenses, business and occupation taxes, utility taxes, and other City codes making reference to Chapter 3.86 for the administration of said codes. WHEREAS, the provisions relating to business licenses, business and occupation taxes, and utility taxes are contained in one chapter of the Bremerton Municipal Code; and WHEREAS, separating business license, business and occupation taxes and utility taxes into separate chapters and creating another chapter relating to the administration of said codes in this ordinance and in companion ordinances considered concurrently with this ordinance, would assist in the interpretation and administration of the various provisions related to each code; and WHEREAS, the City Council desires to create a new chapter relating to the administration of city codes relating to business licenses, business and occupation taxes, utility taxes, and other city codes making reference to Chapter 3.86 based on a model code established through the Association of Washington Cities for the purpose of creating a uniform system for administration of said codes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON,~WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A new chapter, Chapter 3.86 entitled "Administrative Provisions for Taxes" is hereby created to read as follows: CHAPTER 3.86 ADMINISTRATIVE PROVISIONS FOR TAXES 3.86.015 Application of chapter stated. The provisions of this chapter shall apply with respect to the licenses and taxes imposed under chapter 5.02 BMC "General Business Licenses", chapter 3.48 BMC "Business and Occupation Taxes", chapter 3.50 BMC "Utility Taxes" and under other titles, chapters, and sections in such manner and to such extent as indicated in each such title, chapter or section. 3.86.020 Definitions. For purposes of this chapter: Administrative Provisions for Taxes The definitions contained in chapter 3.48 BMC shall apply equally to the provisions of this chapter unless the term is defined otherwise in this chapter. In addition, the following definitions will apply. "Reporting period." "Reporting period" means: (1) A one-month period beginning the first day of each calendar month (monthly); or (2) A three-month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve-month period beginning the first day of January of each year (annual). "Return." "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. "Successor." "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. "Tax year," "taxable year." "Tax year" or "taxable year" means the calendar year. 3.86.040 When due and payable - Reporting periods - Monthly, quarterly, and annual returns - Threshold provisions or Relief from filing requirements - Computing time periods - Failure to file returns. (1) Other than any annual license fee or registration fee assessed under chapter 5.02 BMC, the tax imposed by those chapters set forth in BMC 3.86.015 shall be due and payable in quarterly installments unless otherwise specifically provided for therein. At the Director's discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax. Tax payments are due on or before the last day of th~ next month following the end of the assigned reporting period covered by the return. (2) Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the Director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and tree. (3) Tax returns must be filed and returned by the due date whether or not any tax is owed. (4) A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. (5) Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it is a Saturday, Sunday, or City or Federal legal holiday, in which case the last Administrative Provisions for Taxes day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or City or Federal legal holiday. (6) If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the Director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the Director's estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the City by the taxpayer. The Director shall notify the taxpayer by mail of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. 3.86.050 Payment methods - Mailing returns or remittances - Time extension - Deposits - Recording payments - Payment must accompany return - NSF checks. (1) Taxes shall be paid to the Director in United States currency by bank draft, certified check, cashier's check, personal check, money order, cash, or by wire transfer or electronic payment if such wire transfer or electronic payment is authorized by the Director. If payment so received is not paid by the bank on which it is drawn, the taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax and for all legal penalties, the same as if such payment had not been tendered. Acceptance of any sum by the Director shall not discharge the tax or fee due unless the amount paid is the full amount due. (2) A return or remittance that which is transmitted to the City by United States mail shall be deemed filed or received on the date shown by the cancellation mark stamped by the Post Office upon the envelope containing it. The Director may allow electronic filing of returns or remittances from any taxpayer. A return or remittance which is transmitted to the City electronically shall be deemed filed or received according to procedures set forth by the Director. (3) If a written request is received prior to the due date, the Director, for good cause, may grant, in writing, additional time within which to make and file returns. (4) The Director shall keep full and accurate records of all funds received or refunded. The Director shall apply payments first against all penalties and interest owing, and then upon the tax, without regard to any direction of the taxpayer. (5) For any retum not accompanied by a remittance of the tax shown to be due thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall be subject to the penalties and interest provided in this chapter. (6) Any payment made that is returned for lack of sufficient funds or for any other reason will not be considered received until payment by certified check, money order, or cash of the original amount due, plus a "non-sufficient funds" (NSF) charge of forty dollars ($40.00) is received by the Director. Any license issued upon payment with a NSF check will be considered void, and shall be returned to the Director. No license shall be reissued until payment (including the forty dollars ($40.00) NSF fee) is received. 3 Administrative Provisions for Taxes (7) The Director is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. 3.86.060 Records to be preserved - Examination - Estoppel to question assessment. Every person liable for any fee or tax imposed by this chapter shall keep and preserve, for a period of five (5) years after filing a tax return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal income tax and state tax returns and reports shall be open for examination at any time by the Director or its duly authorized agent. Every person's business premises shall be open for inspection or examination by the Director or a duly authorized agent. (1) If a person does not keep the necessary books and records within the City, it shall be sufficient if such person (a) produces within the City such books and records as may be required by the Director, or (b) bears the cost of examination by the Director's agent at the place where such books and records are kept; provided that the person electing to bear such cost shall pay in advance to the Director the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination. (2) Any person who fails, or refuses a Department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any court action, the correctness of any assessment of taxes made by the City for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The Director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the City by the taxpayer. The Director shall notify the taxpayer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. 3.86.070 Accounting methods. (1) A taxpayer may file tax returns in each reporting period with amounts based upon cash receipts only if the taxpayer's books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method. (2) The taxes imposed and the returns required, hereunder, shall be upon a calendar year basis. 3.86.080 Public work contracts - Payment of fee and tax before final payment for work. The Director may, before issuing any final payment to any person performing any public work contract for the City, require such person to pay in full all license fees or taxes due under this title from such person on account of such contract or otherwise, and may require such 4 Administrative Provisions for Taxes taxpayer to file with the Director a verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. 3.86.090 Underpayment of tax, interest, or penalty - Interest - Limitations. (1) If, upon examination of any returns, or from other information obtained by the Director, it appears that a tax or penalty less than that properly due has been paid, the Director shall assess thc additional amount found to be duc and shall add thereto interest on the tax only. The Director shall notify the person by mail of the additional amount, which shall become duc and shall bc paid within thirty (30) days from the date of the notice, or within such time as the Director may provide in writing. (2) Interest calculation on underpayments. (a) Interest on underpayments of taxes for periods prior to January 1, 2003, shall be computed from the date of underpayment until paid at a rate of one percent for each month, or portion thereof, compounded monthly. (b) Interest imposed on or after January 1, 2003, shall be computed from the last day of the month following the end of the reporting period and will continue to accrue until payment is made. In case of an audit the interest shall be computed from the first day of the month following each calendar year or portion thereof included in the audit period. The rate of interest to be charged to the taxpayer shall be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually, for the months of January, April, July, and October of the year immediately preceding the calendar year as published by the United States Secretary of the Treasury. The rate shall be adjusted on the first day of January of each year for use in computing interest for that calendar year. (3) The Director shall not assess, or correct an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except that the Director may issue an assessment: (a) Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing ten (10) years prior to the close of the calendar year in which the person was contacted in writing by the Director; (b) Against a person that has committed fraud or who misrepresented a material fact; or (c) Against a person that has executed a written waiver of such limitations. 3.86.100 Over payment of tax, penalty, or interest - Credit or refund - Interest rate - Statute of limitations. (1) If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer's records and tax returns, the Director determines that the amount of tax, penalty, or ,4dministrative Provisions for Taxes interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer's account or shall be refunded to the taxpayer. Except as provided in subsection (2) of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four (4) years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed. (2) The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the Director discovers that a refund or credit is due. (3) Refunds shall be made by means of vouchers approved by the Director and by the issuance of a City check or warrants drawn upon and payable from such funds as the City may provide. (4) Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection (3) of this section, upon the filing with the Director a certified copy of the order ,or judgment of the court. (5) Interest calculation on refunds or overpayments. (a) Interest on overpayments of taxes for periods ending prior to January 1, 2003, shall be computed at three (3) percent per annum. (b) Interest on overpayments of taxes for periods beginning on or after January 1, 2003, shall be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) less two percentage points. The rate shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually, for the months of January, April, July, and October of the year immediately preceding the calendar year as published by the United States Secretary of the Treasury. The rate shall be adjusted on the first day of January of each year for use in computing interest for that calendar year. 3.86.110 Late payment - Disregard of written instructions - Evasion - Penalties. (1) If the Director does not receive a return or payment of any tax due on a return by the due date, the Director shall add a penalty equal to the greater of ten percent (10%) of the amount of the tax, or ten dollars ($10.00); and if the tax is not received on or before the last day ~)f the month following the due date, the Director shall add a total penalty equal to the greater of fifteen percent (15%) of the amount of the tax, or fifteen dollars ($15.00); and if the tax is not received on or before the last day of the second month following the due date, the Director shall add a total penalty equal to the greater of twenty percent (20%) of the amount of the tax, or twenty dollars ($20.00). (2) If payment of any tax assessed by the Director is not received by the due date specified in the notice, or any extension thereof, the Director shall add a penalty equal to the greater of ten percent (10%) of the amount of the additional tax found due, or ten dollars ($10.00). Administrative Provisions for Taxes (3) If the Director determines that all or any part of a deficiency resulted from the taxpayer's failure to follow specific written tax reporting instructions, there shall be assessed a penalty of twenty-five percent (25%) of the amount of the additional tax due. (a) A taxpayer fails to follow specific written tax reporting instructions when the Director has informed the taxpayer in writing of the taxpayer's tax obligations and the taxpayer fails to iact in accordance with those instructions. The Director shall not assess the penalty under this subsection upon any taxpayer that has made a good faith effort to comply with the specific written instructions provided by the Director to that taxpayer. (b) Specific written instructions may be given as a part of a tax assessment, audit, determination, or closing agreement, provided that such specific written instructions shall apply only to the taxpayer addressed or referenced on such documents. (c) Any specific written instructions by the Director shall be identified as such and shall inform the taxpayer that failure to follow the instructions may subject the taxpayer to the penalties imposed by this subsection. (4) If the Director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the Director shall assess a penalty of fifty percent (50%) of the additional tax found to be due. (5) The aggregate of penalties imposed under subsections (1) and (2) of this section shall not exceed thirty percent (30%) of the tax due, and shall not be less than twenty dollars ($20.00). This subsection does not prohibit or restrict the application of other penalties authorized by law. (6) The penalties authorized by subsection (3) and (4) shall be assessed in.accordance with the provisions of this chapter governing assessment of tax. The Director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due. 3.86.120 Cancellation of penalties. (1) The Director may cancel any penalties imposed under BMC 3.86.110(1) and (2) if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was, nevertheless, due to circumstances beyond the taxpayer's control, unable to file or pay by the due date. The Director has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in subsection (3). (2) A request for cancellation of penalties must be received by the Director within 30 days after the date the Department mails the notice that the penalties are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rest upon the taxpayer. Administrative Provisions for Taxes (3) The Director may cancel the penalties in BMC 3.86.110(1) and (2) one time if a person: (a) Is not currently licensed, and filing returns, (b) Was unaware of its responsibility to file and pay tax, and (c) Obtained business licenses and filed past due tax returns within 30 days after being notified by the Department. (4) The Director shall not cancel any interest charged upon amounts due. 3.86.130 Taxpayer quitting business - Liability of successor. (1) Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due. (2) Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the city from the taxpayer until such time as: a) the taxpayer shall produce a receipt from the City showing payment in full of any tax due or a certificate that no tax is due, or b) more than six (6) months has passed since the successor notified the Director of the acquisition and the Director has not issued and notified the successor of an assessment. (3) Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer. (4) Notwithstanding the above, if a successor gives written notice to the Director of the acquisition, and the Department does not within six (6) months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. 3.86.140 Administrative Appeal. Any person, except one who has failed to comply with BMC 3.86.060 relating to the maintenance of records, aggrieved by the amount of the fee or tax determined by the Director to be required under the provisions of this chapter may pay the amount due and appeal from such determination by filing a written notice of appeal with the Administrative Hearing Examiner within thirty (30) calendar days from the date written notice of such amount was mailed to the taxpayer. A filing fee as set forth in chapter 3.01 BMC shall be submitted with the appeal, which filing fee is required to process the appeal. The Administrative Hearing Examiner shall, as soon as practical, fix a time and place for the hearing of such appeal, and shall cause a notice of the time and place thereof to be delivered or mailed to the parties. The hearing shall be conducted in accord with the provisions of chapter 2.13 BMC. The decision of the Administrative Hearing Examiner shall indicate the correct amount of the fee or tax owing. Administrative Provisions for Taxes 3.86.160 Director to make rules. The Director shall have the power, from time to time, to adopt, pub!ish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions of this chapter and it shall be unlawful to violate or fail to comply with, any such rule or regulation. 3.86.170 Ancillary allocation authority of Director. The Director is authorized to enter into agreements with other Washington cities which impose an "eligible gross receipts tax": (1) To conduct an audit or joint audit of a taxpayer by using an auditor employed by the City of Bremerton, another city, or a contract auditor, provided, that such contract auditor's pay is not in any way based upon the amount of tax assessed; (2) To allocate or apportion the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city. (3) To apply the City's tax prospectively where a taxpayer has no office or place of business within the City and has paid tax on all gross income to another Washington city where the taxpayer is located; provided that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the City. 3.86.180 Mailing of Notices. Any notice required by this chapter to be mailed to any taxpayer or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer or licensee as shown by the records of the Director. Failure of the taxpayer or licensee to receive any such mailed notice shall not release the taxpayer or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the Director in writing about a change in the taxpayer's address. 3.86.190 Tax declared additional. The license fee and tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the City of Bremerton except as herein otherwise expressly provided. 3.86.200 Public disclosure - Confidentiality - Information sharing. (1) For purposes of this section, unless a different meaning is clearly established by context, the following definitions apply: (a) "Disclose" means to make known to any person in any manner. (b) "Tax information" means: (i) A taxpayer's identity; (ii) The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over 9 Administrative Provisions for Taxes assessments, or tax payments, whether taken from the taxpayer's books and records or any other source; (iii) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing; or (iv) Other data received by, recorded by, prepared by, or provided to the DirectOr with respect to a taxpayer. PROVIDED, That tax information shall not include data, material, or documents that do not disclose information related to a specific or identifiable taxpayer. (2) Tax returns and information are "public records" as that term is defined in RCW 42.17.020. The Director shall not disclose tax information if disclosure would violate RCW Chapter 42.17 or any other law prohibiting disclosure. (3) Tax information may be disclosed to the following: (a) The Mayor, members of the City Council, City Attorney, City Clerk, or their authorized designees, for official purposes; (b) Any agency or officer of the United States of America, the State of Washington, or a tax department of any state, county, city or town, provided that the agency or officer grants substantially similar privileges to the City, and further provided that the agency or officer shall not further disclose the tax information except as authorized in this section. (4) Nothing in this section shall prevent the use of tax information by the Director or any other agency in any civil or criminal action involving any license, tax, interest, or penalty. (5) A person disclosing tax information to a person not entitled to receive that information under this section is guilty of a misdemeanor, and if the person violating this privacy requirement is an officer or employee of the City, such person may be required to forfeit their office or employment. 3.86.210 Tax constitutes debt. Any license fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the City of Bremerton and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. 3.86.220 Unlawful actions - Violation - Penalties. (1) It shall be unlawful for any person liable for amounts due under this chapter or under other chapters as referenced in section 3.86.015: (a) To violate or fail to comply with any of the provisions of this or the referenced chapters or any lawful rule or regulation adopted by the Director; 10 ,05 Administrative Provisions for Taxes (b) To intentionally defraud the City or intentionally evade the payment of any tax or part thereof. (c) For any person to make any false or fraudulent tax return or false statement in any tax return, with intent to defraud the City or evade the payment of any tax or part thereof. (d) To aid or abet any person in any attempt to intentionally defraud the City or intentionally evade payment of a license fee or tax or any part thereof; (e) To fail to appear or testify in response to a subpoena issued pursuant to law; (f) To testify falsely in any investigation, audit, or proceeding conducted pursuant to this Chapter. (g) To fail to keep and preserve books and records or for any person to fail or refuse to permit the examination of any book, paper, record or other data by the City in accordance with this Chapter; and/or (h) to violate any of the provisions of this chapter. (2) Violations-Penalties. (a) Civil penalties. Any violation of BMC 3.86.220(1) constitutes a civil violation under chapter 1.04 BMC for which a monetary penalty and costs may be assessed and enforcement of this chapter may be required as provided for in this chapter and Chapter 1.04 BMC. (b) Criminal penalties. In addition to the foregoing penalties, any person who violates or fails to comply with BMC 3.86.220(1) shall, upon conviction, be punished as described in the general criminal penalty provisions of BMC 1.12.020(2).. Such person will be guilty of this violation for each day, or portion thereof, during which the business is so engaged or carried on. (c) In lieu of and as an alternative to a hearing before the Administrative Hearing Examiner pursuant to BMC 3.86.220(2)(a) above, the City may file an action in a court of competent jurisdiction to seek enforcement of this chapter and assessment and collection of penalties, costs and enforcement as provided for in this chapter. Additionally, the City may file an action in a court of competent jurisdiction to seek enforcement of an order of the Administrative Hearing Examiner issued pursuant to BMC 3.86.220(2)(a) above. (d) Penalties or punishments provided in this section are not exclusive, and may be used in addition to or in conjunction with other enforcement and penalty provisions authorized by the Bremerton City Code or state law. 3.86.240 Closing agreement provisions. The Director may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the Director and the person 11 Administrative Provisions for Taxes so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact: (1) The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the Director or the taxpayer, and (2) In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. 3.86.250 Charge-off of uncollectible taxes. The Director may charge off any tax, penalty, or interest that is owed by a taxpayer, if the Director reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. Charge-offs in excess of five thousand dollars $5,000 require City Council approval. 3.86.260 Severability. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. SECTION 2. Severabilitv. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 3. Effective Date. This ordinance shall take effect and be in force ~en (10) days from and after its passage, approval and publication as provided.by law. APPROVED by the City Council the PASSED by the City Council the day of ,2002 day of ,2002 Approved this day of CAROL ARENDS, Council President ,2002 ATTEST: CARY BOZEMAN, Mayor APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk ROGER A. LUBOVICH, City Attorney 12 Administrative Provisions for Taxes PUBLISHED the day of ,2002 EFFECTIVE the day of .... 2002 ORDINANCE NO. R:kLEGAL\Ordinances~Administration~B&O and Utility Tax~BMC 3.86, Administrative Provisions .doc 13 Administrative Provisions for Taxes Move to approve the mediated offer of settlement in the matter of the City of Bremerton v. Foster Pepper & Shefelman, Cause No. 01-2-00968-2 and to authorize the Mayor to finalize the settlement.