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Home My WebLink About03/07/01 AGENDA CITY COUNCIL MEETING AGENDA MARCH 7, 2001 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. A. General Council Business 2. CALL TO ORDER: 5:30 P.M. A. Pledge of Allegiance B. Invocation 3. CONSENT AGENDA A. Minutes of Meeting - February 21, 2001 (#AB01-056) B. Minutes of Meeting - February 28, 2001 (#AB01-057) 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. MAYOR'S REPORT 7. LEGISLATIVE REPORT 6. PUBLIC RECOGNITION - (Comments limited to 3-minutes) 9. NEW BUSINESS A. Tower Space Lease Agreement with Convergence Technologies, Inc. (#AB01-058) B. Purchased Services Agreement with Washington Timberland Management for Harvest Management, Marketing, and Forestry Services (#AB01-059) 10. PUBLIC HEARING - ORDINANCES A. Ordinance (First Reading), Approving an Interlocal Agreement with the Tracyton Water District; and Waiving the Provisions of BMC 15.02.040 (#AB01-060) 11. ADJOURNMENT OF MEETING THE CITY COUNCIL WILL RECONVENE IN THE CONFERENCE ROOM IMMEDIA TEL Y FOLLOWING THIS MEETING FOR A STUDY SESSION TO DISCUSS "CREA TING A HEARING EXAMINER SYSTEM". At the February 26th Study Session it was agreed that the Council and I would meet with Mr. Cormick the mediator to work out new language regarding the City Attorney that could be ratified by ordinance until such language could be placed on the ballot for the voters. It was also agreed that both parties, while not abandoning the lawsuit, would sign a joint letter to both attorneys to cease all further activity until further notice. Although Mssrs. Esser and Rollman argued that the summary judgement should go forward, the majority of the eight council members present agreed to meet with the mediator first. In the event that avenue proved fruitless, we could then proceed to summary judgement. Last Thursday I sent a draft of the letter to the attorneys for Mr. Law's modification or signature. The letter I received from Mr. Law on Friday stated there was "confusion" at the study session and that he had communicated with a "majority of the Council" and they had decided to go forward with the lawsuit. I feel this not only violated the intent of last week's agreement, but it appears as if Mr. Law and a majority of the City Council violated the Open Meeting's Act by constituting a rolling quorum, which is a contact of less than a majority at one time but a majority in total for purposes of decision making. Although I support a speed resolution to this issue, I also believe an agreement reached between the parties without a judge's verdict will provide a better solution without the expense of going to court. A summary judgement lawsuit means taxpayers money will be spent! It will be spent on attorneys for briefs and rebuttals, court reporters for depositions and other such expenses. I had hoped to avoid such expense because I thought the Council sincerely wanted to mediate a solution without involving lawyers. When Council President Law and I met with Mr. Cormick he and Mr. Law tentatively scheduled a meeting for Monday the 5th with the Council to begin dialogue. In talking to Mr. Cormick on Monday, he stated he called Mr. Law but Mr. Law did not return his phone call. He stated he called someone on Friday to see if Monday's meeting was on but no one answered. He indicated Ms. Malanca called him on Saturday and said that although the Council wanted to work on improving communications between themselves and me, there was no meeting that had been scheduled for Monday. I asked if Ms. Malanca conveyed we had had a meeting on the previous Monday and agreed to utilize his services to mediate specific language regarding the attorney. He replied she had not conveyed that information to him. At this point, I do not believe the majority of the Council either currently or previously has truly desired to mediate this issue, that they reneged on the agreement we reached on the 26th, and they violated the Open Meetings Act by engaging in a rolling quorum. I am ready to move forward to defend my position in court but am saddened by the widening of the breach by a majority of the Council. Lastly, I will be contacting the Attorney General for the State of Washington asking for an investigation as to the possible violation of the Open Meetings Act. I am also requesting that any further discussion regarding this issue should be done not only in an open forum but in a televised forum. So what is really going on? You won't let me hire a full time attorney. It is causing problems for all departments. You are paying Ms. Malanca more money than any other staff member and she is working only a few hours a week primarily on the Council's lawsuit. It appears much of this brief, written at taxpayer expense, will probably be used against the City in the likely event she files a lawsuit .... a lawsuit which could have been prevented if you had written a no-sue clause in her contract. For what? For an attorney? You have trust in? There are 52 pages of attorneys in the yellow pages. All I want is an attorney we can both trust. AGENDA BILL BREMERTON CITY COUNCIL I. SUBJECT: FOR AGENDA OF: HAP, CH 7, 2001 ORIGINATING DEPT.: CITY COUNCIL MINUTES OF MEETING-- FEBRUARY 21, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT DATE SUBMI'T-FED: FEBRUARY 26, 2001 !. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: --NDORSEMENT [1 INFORMATION r] APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: vlAYOR COUNCIL PRESI DEN.'?-"~"" ..~.~ ~-. ~_ _~ SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: RECOMMENDATION: 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION ::)ULLED [1 TABLED [1 APPROVED [1 DISAPPROVED I1 AMENDED [1 DATE: 3A ~OUNCIL DIRECTIVE: 11. AGENDA BILL NO.: 01 (OVER) 2. CLEARANCE COMMENTS: 4. SUMMARY STATEMENT (CONTINUED): 5.' IMPACT OF NON-PASSAGE: 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCER: 7. RESEARCH SOURCES: TAPES #1753 & 1754 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES February 21,2001 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, February 21, 2001, at 5:30 P.M., with Council President John Law presiding. Council members present were Jim Reed, Carol Arends, David Farr, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen. Council Member Conrad Esser was absent. Also present were Deputy City Clerk Paula Johnston; Special Counsel Glenna Malanca; and Council Assistant Christine Grenier Ellingson. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation given by Princ~alNick Sweeney, of Kings West School. President Law made the following announcements: 1) A Pre-Council Session was held in the Conference Room to discuss general Council business; 2) There will be a 30-Minute Study Session immediately following the Council Meeting in the Council Conference Room to discuss the "Endangered Species Act"; and 3) Next Wednesday there will be a Study Session to discuss "Creating a Hearing Examiner System". CONSENT AGENDA A. Minutes of Meeting - February 13, 2001 (#AB01-043) #0025 M/S/C/U (McConnell/Olsen) Move to approve Consent Agenda as presented. 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. #0050 M/S/C/U (Reed/Arends) On February 21, 2001, the Council does approve for payment those vouchers included and further described as follows: Checks 249324, and 249341 through 249588 in the amount of $1,021,537.99; and Regular Payroll for the period ending February 15, 2001 in the amount of $791,708.37. COUNCIL MEMBER REPORTS Ed Rollman announced the next District 4 Neighborhood Meeting is planned for Monday, March 5, 2001 from 7:00 P.M. to 8:30 P.M. at the Washington Mutual Building located on the corner of 6th & Pacific to discuss "The Proposed Bremerton/Kitsap County Regional Government Center" with members of the Kitsap Consolidated Housing Authority. He also announced that the Smile-Mobile would be in Bremerton from February 20 to March 2, 2001, and further information can be obtained by calling 377-0053, extension 356. Mike She.oherd commented on the AWC Conference, which included discussions on municipal issues relating to energy conservation. He also announced the District 5 Meeting scheduled Thursday, March 15, 2001 at the Memorial Lutheran Church located at 10th & Veneta Avenue to discuss "The Proposed Merger of Central Kitsap & Bremerton Fire Districts". David Farr and Carol Arends reported on the combined District 6 & 7 meeting held last evening where citizens had an opportunity to discuss the proposed Bremerton/Kitsap County Regional Government Center with guest speakers Norm McLoughlin and Roger Waid of the Kitsap County Coordinating Housing Authority. Mrs. Arends also commented on the AWC Conference and the Kitsap Regional Coordinating Council dinner where the energy crisis issue was also discussed. TAPES #1753 & #1754 City Council Reg. Mtg. Minutes February 21, 2001 Page 2 of 6 Jim Reed invited citizens as well as the investment, real estate, and business community to attend the combined District 8 & 9 meeting on Thursday, March 8, 2001 beginning at 6:30 P.M. at the Oyster Bay Public Works Conference Room located at 100 Oyster Bay Avenue to discuss "Funding Sources for City Road Repair", as well as the "Possible Elimination of the B&O Tax". John Law reported on the District 3 meeting held last evening, and thanked Beat Cop Alan Homberg and Building & Planning Director Chris Hugo for their participation. He also commented on the AWC Conference and transportation issues. MAYOR'S REPORT Mayor Horton commented on the closure of City Hall due to the snowstorm last Friday; and announced that anyone interested in attending the Ferry Rally in Olympia can purchase a seat on the Bremerton ferry for a cost of $25, which will depart at 9:30 A.M. from the Bremerton dock and return at 4:15 P.M. Those needing a sponsor, as well as those interested in being a sponsor are encouraged to contact the Bremerton Area Chamber of Commerce at 479-3579. Chief Rob Forbes outlined the distinguished career of Lieutenant Tom Pratt, then presented him a special award recognizing his 30 years of service. Mayor Horton read a proclamation declaring February 21, 2001 as Tom Pratt Day and thanked Lieutenant Pratt for his many dedicated years. LEGISLATIVE REPORT - There was no report this evening. PUBLIC RECOGNITION Louis Mentor encouraged citizens to support the Ferry Rally in Olympia. He also stated that the Kitsap Homebuilders Association may be contacted for further information on the "Christmas in April" program, and that applications were still being accepted. Don Larson reiterated his request that the City start a tree-planting program to lessen the impact of paved surface area, and encouraged the City to coordinate the efforts with business owners. Mike Shepherd left the meeting at 6:08 P.M. and returned at 6:11 P.M. 9A - ORDINANCE NO. 4756 (SECOND READING) AUTHORIZING THE ISSUE OF GENERAL OBLIGATION BONDS TO FINANCE THE CLUBHOUSE AT GOLD MOUNTAIN GOLF COMPLEX; AND ACCEPTING THE PURCHASE OFFER OF BANK OF AMERICA (#AB01-044): The first reading of this ordinance was heard at the Council meeting on February 13, 2001. City Treasurer Rich Hanna provided updated materials, and reiterated that this ordinance would authorize the financing necessary to design, construct, and furnish the new clubhouse at Gold Mountain Golf Course. Council reviewed this project in the context of the 2000-2005 CIP, the 2001-2002 Budget as well as the awarding of the contracts for clubhouse design and construction. The bond issue proposed is a 20-year, Limited Tax General with level debt service. While the debt will be a general obligation of the City, it is expected that repayment will be made from the revenues of the Golf Course. There were no comments from the public. #1190 M/S/C/U (FardMcConnell) Move to approve Ordinance No. 4756 on second reading authorizing the bond issue for the clubhouse at Gold Mountain. TAPES #1753 & #1754 City Council Reg. Mtg. Minutes February 21, 2001 Page 3 of 6 9B - ORDINANCE (FIRST READING) VACATING THE ALLEY LOCATED BETWEEN NAVAL & ROOSEVELT AVENUES, AND BETWEEN 6TM & 7TM STREETS (#AB01-045): Senior Engineer Jeff Shea summarized that the City has received a petition from S. E. Grainger Development Group to vacate the alley located between Naval and Roosevelt Avenues and between 6th and 7th Streets. A hearing date of February 21, 2001 was set by the City Council on January 24, 2001. This right-of- way consists of a paved alley that abuts the applicant's properties and is utilized as access to those properties. The vacation is being requested by S.E. Grainger Development Group to develop the site for construction of a new retail outlet using the entire block. Posting of the hearing notices and mailings to the adjacent property owners has been completed in accordance with State law and the Bremerton Municipal Code. This is a Class [! right-of-way and the petitioner has paid the required compensation in the amount of $11,006.42. Specific items for City Council consideration are outlined in the Staff Report. It was noted that the proposed vacation is north of the Shipyard gate, and there have been no objections. In response to questions from the Council, It was clarified that the vacation will go to the abutting property owners, not to the developer; the vacation would allow for development; and the vacation would not have a negative impact on the abutting property owners. There were no comments from the public. #1455 M/S/C/U (Shepherd/Reed) Move to approve the attached ordinance on first reading, vacating the alley located between Naval & Roosevelt Avenues, and between 6t' & 7t' Streets. 9C - ORDINANCE (FIRST READING) ORDINANCE VACATING APPROXIMATELY 210 FEET OF YANTIC AVENUE SOUTH OF 1sT STREET, AND THE ALLEY LYING SOUTH OF 1sT STREET BETWEEN YANTIC AND HARTFORD AVENUES (#AB01-046): Senior Engineer Jeff Shea stated that the City has initiated the vacation of approximately 210 feet of Yantic Avenue south of 1st Street and the alley lying south of 1s~ Street and between Yantic and Hartford Avenues. A hearing date of February 21, 2001 was set by City Council on January 31, 2001. These right-of-ways have not been developed and the terrain consists of hilly, steep sloped that are not needed for public use. Posting of the hearing notices and mailing to the adjacent property owners has been completed in accordance with State law and the Bremerton Municipal Code. Less than 50 percent of the abutting property owners have submitted written objections to the City Clerk's office. This is a Class III right- of-way and compensation is not required. The request before the City Council is to approve, disapprove, or modify this vacation of approximately 210 feet of Yantic Avenue south of l't Street and the alley lying south of 1st Street and between Yantic and Hartford Avenues. David Farr excused himself due the Appearance of a Conflict of Interest at 6:20 P.M. and was not present for the following vote. There were no comments from the public. Mr. Reed asked how the right-of-way is to be divided among the property owners. Mr. Shea answered that by state law, the inner alley shall be split in half, and the remainder of the property shall be returned to the original property owners accordingly. Ms. Malanca added that the dedication process is different for each of the property segments, and that a Quit Claim Deed agreed to by all involved parties would address that issue. #1775 M/S/C/U (Arends/McConnell) Move to approve the attached ordinance on first reading, vacating approximately 210 feet of Yantic Avenue south of 1st Street and the alley lying south of Is~ Street and between Yantic and Hartford Avenues. Mike Shepherd left the meeting at 6:30 P.M.; and David Fart returned to the meeting at 6:31 P.M. TAPES #1753 & #1754 City Council Reg. Mtg. Minutes February 21, 2001 Page 4 of 6 9D - ORDINANCE (FIRST READING) VACATING THE SOUTHERLY 1000 FEET OF FORREST STREET BETWEEN 1sT STREET (VACATED) AND KITSAP WAY (#AB01-047): Senior Engineer Jeff Shea mentioned that the City has initiated the vacation of the southerly 1,000 feet of Forrest Street between 1st Street (vacated) and Kitsap Way. A hearing date of February 21, 2001 was set by the City Council on January 31, 2001. Forrest Street is approximatelY 1,600 feet in length. It begins at the southerly right-of-way of Kitsap Way and has been developed for approximately 600 feet. The remainder of the right-of-way is undeveloped. The terrain for the undeveloped portion of the right-of- way is hilly with steep slopes that are not needed for public use. Posting of the hearing notices and mailing to the adjacent property owners has been completed in accordance with State law and the Bremerton Municipal Code. Less than 50 percent of the abutting property owners have submitted written objections to the City Clerk's office. This is a Class E[ right-of-way and compensation is not required. The request before the City Council is to approve, disapprove, or modify this vacation of the southerly 1,000 feet of Forrest Street between 1st Street (vacated) and Kitsap Way. There were no comments from the public. Mike Shepherd was not present for the following vote. #1900 M/S/C/U (Reed/Arends) Move to approve the attached ordinance, vacating the southerly 1,000 feet of Forrest Street between 1st Street (vacated) and Kitsap Way, on first reading. 10A - A PRESENTATION OF THE CSO PLAN UPDATE Senior Engineer Thomas Knuckey presented the CSO Plan Update, and noted that remaining costs were estimated at $24 million, with $15 million to be provided by grant funds. Jim Reed left the meeting at approximately 6:35 P.M. and returned at 6:37 P.M. Mike Shepherd returned to the meeting at 6:37 P.M. 10B - RESOLUTION NO. 2802. APPROVING THE CSO PLAN UPDATE AND FACILITY PLAN (#AB01-048): Senior Engineer Thomas Knuckey reported that staff has developed the Update to the Combined Sewer Overflow (CSO) Reduction Plan for compliance with State Regulations. The CSO Plan Update serves as the Facility Plan for CSO Reduction Improvements to several CSO basins including: Stevens Canyon, Cherry Avenue, East Park, Tracyton Avenue, and Pacific Avenue. The update additionally revises the Callow Avenue Facility Plan. The Facility Plan outlines required stormwater separation along with conveyance improvements to the new CSO Treatment Facility for CSO Basins in East Bremerton. The Callow Avenue Basin Facility Plan is revised to add conveyance along with stormwater separation. Implementation of the recommended improvements outlined in the CSO Plan Update is required for compliance with State Regulations. There were no comments from the public. #2465 M/S/C/U (McConnell/Farr) Move to pass Resolution No. 2802, which approves the CSO Plan Update and Facility Plan for the reduction of combined sewer overflow. 10C - RESOLUTION NO. 2803, TO HIRE A CITY ATTORNEY (#AB01-049): Council member Cecil McConnell stated that the City Attorney is an essential and necessary employee of the City, and that the current position is now vacant. It is therefore recommended that the position be advertised and filled as soon as possible to maintain the efficient operation of the City. He also pointed out that independent counsel is extremely costly and hiring a City Attorney would eliminate these additional costs in legal representation and counsel. TAPES #1753 & #1754 City Council Reg. Mtg. Minutes February 21, 2001 Page 5 of 6 There were no comments from the public. #2690 MIS (McConnell/Farr) Move to pass Resolution No. 2803, approving the advertising and hiring of a City Attorney. (Vote did not take place, discussion continued .... ) Mr. Olsen stated that he has been silent on this issue because he hoped the Council could "settle their differences" and believed that a "united Council" would get more accomplished, however, he now feels that "enough is enough", and stated that Council must attempt to find a resolution to end the increasing costs associated with this legal battle. Mr, Reed responded to the comments made regarding increased costs, and reiterated that the City already has a City Attorney, and that it was not the full body of the Council that is proposing to hire the outside counsel. Mr. Shepherd questioned the legality of continuing this discussion, and if there were any limitations in light of the current litigation. Ms. Malanca responded that the Council was free to discuss the issue in open session because it was considered "City business". She did remind Council however, that any decisions made here tonight could impact the litigation. Mr. McConnell noted that the litigation issue was to determine who had the right to accept a resignation, not whether or not the City hired a City Attorney, which is an essential employee of the City. Mr. Rollman stated that the Council had to base their decisions on facts, and was disappointed in the article referred to by Mr. Olsen, which was not based on facts, just name calling. He summarized his comments by stating he would only support this issue if an amendment was included making it contingent upon the decision made by a State Judge following the current litigation. Mr. McConnell was concerned that this litigation may not be resolved for over a year, and the citizens of this City should not be without legal representation for that length of time. He stated that personal agendas must be set aside, and it is time to think about the City of Bremerton and the residents. Mr. Reed clarified his position that he would only consider hiring a new City Attorney if the Council had allowed the original City Attorney to be removed. Mr. McConnell responded that the original City Attorney abandoned her position as City Attorney when she accepted the position of Special Counsel. Mayor Horton emphasized that not having a City Attorney on staff is detrimental to City operations, and even though the Legal Department has thus far managed with no.major negative impact, this issue has also been detrimental to the Legal Department staff on both a personal and professional basis. She too stated that this issue could easily go on through the remainder of the year, or longer, and regardless of the court decision, the working relationship between her and Ms. Malanca has been irretrievably damaged. As an alternative to going to court, she suggested that (1) the Council allow her to hire a City Attorney; (2) to work together, with the assistance of the facilitator, to craft Charter language mutually agreed on to solve this dilemma; (3) place the proposed Charter changes on the November ballot for the voters to decide; and in the meantime, (4) the Mayor and Council sign a binding agreement that both parties would abide by that until the voters made a decision on how to proceed. She understood the interest of the Council to have independent counsel, which could probably be arranged per hour on a contractual basis. #3350 M (Shepherd/) Move to table item for one week. Motion died due to a lack of a second. Mr. Fart agreed that Council must take every opportunity to end this conflict, and resist the temptation to continue the battle. He further stated that he has no faith in being able to predict what the courts will do, or what the legal system will determine is an appropriate length of time to "drag this out". He also does not see an incentive on the part of the attorneys hired, at a healthy fee, in a timely manner. He emphasized his desire for Council to end this counterproductive fight and "move on". TAPES #1753 & #1754 City Council Reg. Mtg. Minutes February 21, 2001 Page 6 of 6 Mr. Olsen agreed with Mr. Shepherd that Council should table this issue for now, and in the meantime, have the Mayor present her proposal to the Council. Mr. Reed reminded the Mayor that she too has every option to resolve this issue, and this issue was not only the Council's responsibility. Mayor Horton agreed that more discussion needed to take place, and her suggestions were not intended to place the full blame for this issue on the Council. Ms. Malanca noted that the Council's attorney have been instructed to make every attempt to file the Summary Judgment this week. She also clarified that she has never communicated to anyone that her relationship with the Mayor was irretrievably broken, however, she does feel that due to some direction provided to staff, as she understands them a "wall" has been placed between herself and staff, affecting her ability and availability to work with staff to meet their legal needs. As she understands it, there has never been a question about her capabilities as City Attorney and providing legal services for the City, therefore she proposed another option to expediently handle the current conflict: (1) place her back temporarily in her office, with staff, under an agreeable job title; and (2) include a stipulation stating that the placement of Ms. Malanca over the Legal Department would not be admissible in the court proceeding. She could then provide the City with necessary legal services at much less expense to the City until the Mayor and Councils' legal issues are resolved. TAPE #1755 President Law proposed a Study Session for further discussion on Monday, February 26, 2001. #0075 M/S/C (Shepherd/McConnell) Move to table this item until the next Council meeting on Wednesday, February 28, 2001; following the Study Session on Monday, February 26, 2001 to discuss specific language proposed by the Mayor. Voted in favor of the motion: McConnell, Shepherd, Farr, Arends, Olsen, and Law Voted opposed to the motion: Rollman Abstained: Reed Motion carried: 6-Yes; 1-No; and 1-Abstention With no further business, meeting concluded at 7:20 P.M. and reconvened in the Council Conference Room for a 30-Minute Study Session to discuss "The Endangered Species Act". Prepared and Submitted by: LORI SMITH, Legislative Assistant Attest: PAULA JOHNSTON, Deputy City Clerk JOHN LAW, City Council President City of Bremerton JL/PJ/Is/cge c: Normal Distribution; File AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: FOR AGENDA OF: HARCH 7, 2001 ORIGINATING DEPT.: CITY COUNCIL MINUTES OF MEETING-- FEBRUARY 28, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT DATE SUBMITTED: HARCH 1, 2001 CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: --NDORSEMENT ri INFORMATION [1 APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: P N~ ~7~ ~,~~ JlAYOR COUNCIL RESIDE .... .~.-y~.~ . SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION' RECOMMENDATION: 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION :'ULLED rl TABLED []APPROVED[] DISAPPROVED I"1 AMENDED [] DATE: 3 B ~OUNCIL DIRECTIVE: 11. AGENDA BILL NO.: ~)l '"'~,--~ ~/ (OVER) 2. CLEARANCE COMMENTS: 4. SUMMARY STATEMENT (CONTINUED): 5. IMPACT OF NON-PASSAGE: 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: 7. RESEARCH SOURCES: TAPE #1755 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES February 28, 2001 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, February 28, 2001, at 5:30 P.M., with Council President John Law presiding. Council members present were Jim Reed, Carol Arends, David Farr, Ed Rollman, Cecil McConnell, and Wayne Olsen. Council members absent were Mike Shepherd and Conrad Esser. Also present were Acting Deputy City Clerk Peggy Lesser; Special Counsel Glenna Malanca; and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation given by Pastor Rick Bodrie, of Calvary Chapel. President Law made the following announcements: 1) A Pre-Council Session was held to discuss general Council business; 2) The 60-Minute Study Session scheduled immediately following the Council Meeting in the Council Conference Room to discuss "Creating a Hearing Examiner System" was postponed until the Monthly Study Session on March 7, 2001; and 3) Item 11(A)"Resolution No. 2803 to Hire a City Attorney" was postponed until March 28, 2001. 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. #0019 M/S/C/U (Farr/Arends) On February 28, 2001, the Council does approve for payment those vouchers included and further described as follows: Checks 249603 - 249747, and EFT 6391 in the amount of $342,955.22; and Retiree Payroll in the amount of $122,844.50 for the period ending February 28, 2001. Voted in favor of the motion: Olsen, McConnell, Rollman, Farr, Arends, and Law Abstained: Reed Motion carried: 6-Yes; and 1-Abstention COUNCIL MEMBER REPORTS Wayne Olsen & Cecil McConnell announced that a combined District 1 & 2 meeting would be held Tuesday, March 20, 2001, at the Sheridan Park Recreation Center on Lebo, beginning at 7:00 P.M. Ed Rollman announced the District 4 Neighborhood Meeting which is planned for Monday, March 5, 2001 from 7:00 P.M. to 8:30 P.M. at the Washington Mutual Bank Building located on the corner of 6th Street and Pacific Avenue to discuss "The Proposed Bremerton/Kitsap County Regional Government Center". Guest speakers will include Executive Director, Norm McLoughlin and Deputy Executive Director, Roger Waid of the Kitsap County Consolidated Housing Authority. He also toured a portion of his district to check out any earthquake damage. David Farr also toured portions of his district after the earthquake and cautioned citizens to be careful and check for damage before using their heating systems or fireplaces. Carol Arends was very grateful that there was not any serious damage from the earthquake; and encouraged citizens to talk to their State Legislatures in support of the ferry system. TAPE #1755 City Council Reg. Mtg. Minutes February 28, 2001 Page 2 of 5 Jim Reed appreciated the efforts by City Street Department crews to direct traffic after the signal lights failed to work following the earthquake. He also invited citizens to attend the combined District 8 & 9 meeting on Thursday, March 8, 2001 beginning at 6:30 P.M. at the Oyster Bay Public Works Conference Room located at 100 Oyster Bay Avenue to discuss "Funding Sources for City Road Repair", as well as a discussion on the "Possible Elimination of the B&O Tax". John Law mentioned the next District 3 meeting would be Tuesday, March 20, 2001. MAYOR'S REPORT Mayor Horton and Chief Al Duke provided a "State of the City" report following the 6.8 earthquake this morning. Citizens were informed that officials of Kitsap County Emergency Services have set up a hotline at 337-7038 to report structural damage so that a clear assessment of overall damage caused by the quake can be ascertained. It was also noted that the Permit Center would be open for anyone in need of a building permit to rebuild or repair structural damage; and United Way was offering a program to assist senior citizens in bolting and bracing items in their homes. PUBLIC RECOGNITION Helen Miller asked if there has been any progress in assisting artists to reside in or above their facilities. Mayor Horton responded that a number of things are being done to promote artist lofts as part of the downtown redevelopment strategy efforts, including modifying zoning codes. Ed Pietres was very pleased with the recent opening of the Bremerton Gateway Project. 9A - INTERLOCAL LEASE AGREEMENT BETWEEN BREMERTON PUBLIC WORKS & UTILITIES AND KITSAP CONSERVATION DISTRICT (#AB01-050): It was announced that the Kitsap Conservation District (KCD) has requested use of approximately one-half acre to store and prepare plants for their "Native Plant Salvage Program". This program provides plants for restoration and enhancement of natural areas including stream restorations on public sites. This program will benefit restoration efforts within the county including those Water Utility is currently involved with at Gorst Creek. The Water Utility has an open area available adjacent to the existing greenhouse at the Forestry Office compound. In lieu of monetary compensation, KCD agrees to contribute plant material and expertise to the Water Utility for its stream restoration projects. There were no comments from the public. #1012 M/S/C/U (Farr/McConnell) Move to authorize the Mayor to execute the Interlocal Lease Agreement with the Kitsap Conservation District for operating and maintaining a Native Plant Salvage Program. 9B - PURCHASE AGREEMENT FOR SELF-CONTAINED BREATHING APPARATUS FROM SEA- WESTERN. INC (#AB01-051): Fire Chief Al Duke reported that in order to meet State and Federal safety standards, the Fire Department must purchase new Self-Contained Breathing Apparatus (SCBA) and parts for use in fighting fires and entering into hazardous atmospheres to rescue citizens. The Fire Department is seeking authorization to enter into a purchasing agreement with Sea-Western Inc. to purchase the equipment. Sea-Western is the sole source authorized distributor for Washington State. There were no comments from the public. #1101 M/S/C/U (McConnell/Olsen) Move that Council authorize the Mayor to sign the purchasing agreement with Sea-Western to purchase Self-Contained Breathing Apparatus. TAPE #1755 City Council Reg. Mtg. Minutes February 28, 2001 Page 3 of 5 9C - CONTRACT CHANGE ORDER FOR SR304 TIP, GATEWAY PHASE (#AB01-052): City Engineer Jennifer Strehler summarized that in January of 2001, the City identified two defects in the sanitary sewer system in the vicinity of the intersection of Cambrian Avenue and Farragut Street that require immediate repair. The cost to make the repairs is estimated to be $150,000. Constraints due to schedule, cost, and access require that the work would be performed by the SR304 Contractor concurrent with his completion of the Gateway Phase of the SR304 Project. Approval of this increase to the Change Order Authorization allows the repairs to be made to the sanitary sewer system without impacting the remaining construction of the Gateway Phase of the SR304 Project. The requested action before the City Council is approval of an increase in the Change Order Authority of the Gateway Phase of the SR304 Transportation Improvement Project from $250,000 to $400,000. There were no comments from the public. #1285 M/S/C/U (Arends/Reed) Move that Council authorize the Mayor to execute change orders on the SR304 Transportation Improvement Project, Gateway Phase contract to a limit of $400,000 for a total contract amount not to exceed $4,643,253.00. 9D - PROFESSIONAL SERVICES AGREEMENT FOR DESIGN SERVICES WITH HDR ENGINEERING FOR CALLOW BASIN PRIORITY 5 AND TRENTON/CHERRY CSO IMPROVEMENTS (#AB01-053): City Engineer Jennifer Strehler said that the City has negotiated a Professional Services Agreement with HDR Engineering to provide engineering services to design CSO improvements for the Callow Basin Priority 5 and Trenton/Cherry Avenue CSO Improvements. The Callow Basin Priority 5 storm separation project includes extensions of new storm sewer piping to intercept storm water that currently drains into the combined or sanitary sewer system and contributes to combined sewer overflows. The Trenton/Cherry work includes environmental permitting assistance and engineering design services for specific conveyance improvements in the Cherry Avenue and Trenton Avenue Basins as identified in the CSO Reduction Facility Plan. The no- to-exceed amount of the agreement if $612,300.00. The request before the City Council is to approve an agreement for professional services with HDR Engineering. There were no comments from the public. Mr. Farr raised questions about the bid process used to select HDR Engineering as the contractor for a Professional Services Agreement this large, and wanted to be sure that the City was within the parameters of State Law. Ms. Strehler discussed the current system in place; and Ms. Malanca clarified that there is a separate State statute to deal with engineering services. #1609 M/S/C/U (McConnell/Arends) Move to approve a Professional Services Agreement with HDR Engineering to provide engineering services to design CSO improvements for the Callow Basin Priority 5 and Trenton/Cherry Avenue CSO Improvements, in an amount not to exceed $612,300.00, and authorize the Mayor to execute the same. 10A - ORDINANCE NO. 4757 (SECOND READING) VACATING THE ALLEY LOCATED BETWEEN NAVAL & ROOSEVELT AVENUES. AND BETWEEN 6TM & 7TM STREETS (#AB01-045): First reading of this ordinance was heard on February 21, 2001. Senior Engineer Jeff Shea reiterated that that the proposed vacation is north of the Shipyard gate, and there have been no objections. There were no comments from the public. #1675 M/S/C/U (Arends/Rollman) Move to pass Ordinance No. 4757 on second reading, vacating the alley located between Naval & Roosevelt Avenues, and between 6th & 7th Streets. TAPE #1755 City Council Reg. Mtg. Minutes February 28, 2001 Page 4 of 5 10B- ORDINANCE NO. 4758 (SECOND READING) ORDINANCE VACATING APPROXIMATELY 210 FEET OF YANTIC AVENUE SOUTH OF 1sT STREET, AND THE ALLEY LYING SOUTH OF Is'r STREET BETWEEN YANTIC AND HARTFORD AVENUES (#AB01-046): First Reading for this ordinance was heard on February 21, 2001. There were no comments from the public. David Farr excused himself due a Conflict of Interest at 6:30 P.M. and was not present for the following vote. #1740 M/S/C/U (McConnell/Arends) Move to pass Ordinance No. 4758 on second reading, vacating approximately 210 feet of Yantic Avenue south of 1st Street and the alley lying south of 1st Street and between Yantic and Hartford Avenues. David Farr returned the meeting immediately following the vote at approximately 6:32 P.M. 10C - ORDINANCE NO. 4759 (SECOND READING) VACATING THE SOUTHERLY 1000 FEET OF FORREST STREET BETWEEN 1sT STREET (VACATED) AND KITSAP WAY (#AB01-047): First Reading for this ordinance was heard on February 21, 2001. There were no comments from the public. #1780 M/S/C/U (Reed/McConnell) Move to pass Ordinance No. 4759, vacating the southerly 1,000 feet of Forrest Street between 1st Street (vacated) and Kitsap Way, on second reading. 10D - OVERRIDE LINE ITEM VETO OF ORDINANCE NO. 4746. GENERAL FUND 001 (#AB01- 054): Council Member Cecil McConnell summarized that Ordinance No. 4746 was brought to Council on December 6, 2000 for first Reading, and passed on second Reading on December 13, 2000. The Mayor then vetoed the line item per the attached memo dated December 19, 2000. This item is now being brought forward for reconsideration. There were no comments from the public. #1890 M/S/F (McConnell/Reed) Move to override the Mayor's line item veto of Ordinance No. 4746. Voted in favor of motion: Roilman, Reed, and Law Voted opposed to motion: Farr, Arends, Olsen, and McConnell Motion failed: 3-Yes; and 4-No 10E - OVERRIDE VETO OF ORDINANCE NO. 4749, AMENDING CHAPTER 2.49 OF THE BMC PROVIDING FOR CITY COUNCIL MEMBERSHIP ON INTERVIEW PANELS FOR CERTAIN EMPLOYEED (#AB01-055): Council Member Cecil McConnell stated that Ordinance No. 4749 was brought to Council on December 27, 2000 for first reading, and passed on second reading on January 3, 2001. The Mayor per the attached memo dated January 4, 2001 then vetoed the ordinance. This item is now being brought forward for reconsideration. There were no comments from the public. TAPE #1755 City Council Reg. Mtg. Minutes February 28, 2001 Page 5 of 5 #1935 M/S/C/U (/) Move to override the veto of Ordinance No. 4749. Voted in favor of motion: Reed, Rollman and Law Voted opposed to motion: Farr, Arends, Olsen, and McConnell Motion failed: 3-Yes; and 4-No With no further business, meeting concluded at 6:38 P.M. Prepared and Submitted by: LORI SMITH, Legislative Assistant Attest: PAULA JOHNSTON, Deputy City Clerk JOHN LAW, City Council President City of Bremerton JLIP JIIslcge c: Normal Distribution File AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: Tower Space FOR AGENDA OF: 03/ ~/0t L1,/ Lease Agreement with ORIGINATING DEFT: Admin Service~/l_¥/ Convergence Technologies Inc. ORIGINATOR: Paula Johnsto~/~4 DATE SUBMITTED: 03/07/01 v~ 2. CLEARANCES: (comment on back 3. EXHIBITS: if necessary) AsstAdmincityServicesAttorneyDir ~2~~~~ Lease Agreement PW & Utility Dir , ENDORSEMENT ~~_~ ~NF~MA~ON APPROVED BY COUNCILpRESiDENT ~J~ ~z/~/~~/PRESIDE~T~ SUBMITTAL: MAYOR ~-~ ' COUNCIL 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL~ACTION: Convergence Technologies Inc. has propsed to lease tower space on the City's Cheryl Street telecommunications tower. The term will be for three years with an option to renew and the rental amount is proposed at $100/mo which is competitve for like kind antennae attachments. 8. RECOMMENDATION: Move to approve the 3-year Lease Agreement on City owned tower with Convergence Technologies Inc. 9. RESPONSIBLE OFFICIAL: Admin Services ENFORCEMENT OFFICIAL: Admin Services EXPIgATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED~~ENDED COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL NO: 0J-- 0,~ 2 . CLEAPJ~NCE COMMENTS (cont.) : 4. SUMMARY STATEMENT (cont.): 5. IMPACT ON NON-PASSAGE: Loss of tower rental revenue. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES n/a 7. RESEARCH SOURCES: LEASE AGREEMENT City Owned Tower THIS LEASE AGREEMENT entered into by and between the City ofBremerton, a municipal corporation duly organized and existing under the laws of the State of Washington, as Lessor (hereinai~er referred to as "Lessor") and Convergence Technologies, Inc., (hereinafter referred to as "Lessee"). Whereas, Lessor is the owner of property housing a telecommunications tower and shelter at the site commonly known as the Cheryl Street Site and hereai~er referred to as the "Premises". The Premises is more fully described on Exhibit "A" attached hereto and made a part of this Agreement. In consideration of the mutual covenants contained herein and for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. LEASE. Lessor agrees to lease to Lessee approximately 1' x 5' (5) square feet of space on the Lessor's telecommunication tower and space in the adjacent shelter for associated antenna and radio equipment cabinet hereafter referred to as the "Equipment" more fully described on Exhibit "B" attached hereto and made a part of this Agreement. Any change to the Equipment described in Exhibit "B" shall result in renegotiation of the lease rent amount and require prior approval by the Lessor. 2. USE OF PREMISES. a. Lessee agrees to use the Premises for the installation, operation and maintenance of equipment and associated antenna for the purpose of transmission and reception of telecommunication and signals in any and all frequencies described in Exhibit "B" attached hereto and made a pan of this Agreement. All of Lessee's equipment or other property attached to or otherwise brought onto the Premises shall at all times remain personal property and are not considered fixtures, and at Lessee's option may be removed by Lessee at any time during the term hereof or any renewal terms. Upon expiration or termination of this Agreement, Lessee agrees to repair any damage to the Premises caused by Lessee during the term of the Agreement, ordinary wear and tear and damage from the elements excepted. In connection therewith, Lessee shall have the right, at its sole cost and expense, to obtain electrical and telephone service from the servicing utility company, including the right to install a separate meter and main breaker, where required. Lessee shall be responsible for the electricity it consumes for its operations at the normal rate charged by the servicing utility company. Lessee and Lessor agree that if an easement is required to obtain telephone service, Lessor and the servicing utility company will agree to an acceptable location. LEASE AGREEMENT - Page 1 Convergence Tec, haologi~s - 2/7/01 b. This lease is contingent upon the Lessee obtaining all necessary permits, approvals and licenses for the proposed facilities. In the event that the Lessee is unable to obtain all such permits, approvals and licenses, it may cancel this lease, and obtain a pro rata refund in any rents paid, without further obligation by giving thirty (30) days prior written notice to the City. Lessee agrees to restore City property to original condition if cancellation is requested. In the event that the holder of a lease determines that the City property is unsuitable for its intended purpose, the Lessee shall have the right to cancel the lease upon thirty (30) days written notice to the City. c. Lessee shall have the right to run transmission lines from the equipment area to the antenna location and to run power from the main feed to the equipment, which improvements shall be at Lessee's sole cost and expense. Further, Lessee agrees to perform all improvements in a good and workmanlike manner. d. Lessor agrees to provide twenty-four (24) hours, seven (7) days a week access to the Premises without charge to Lessee, Lessee's employees or any subcontractors or agents. Lessor acknowledges that the Lessee has such access, which shall remain unimpeded throughout the initial term and any renewal term of this Agreement. e. Notwithstanding any other provisions herein, the Lessee shall not enter into any sublease of the Premises or any portion thereof, and shall not enter into any assignment of any interest in this agreement, whether long or short term in nature, and shall not engage in any activity with respect to or on the Premises other than the express use(s) and purpose(s) stipulated herein, without obtaining prior written authorization therefore from the Lessor. 3. SITE TESTING. Lessor acknowledges that Lessee, at its option following full execution of this Agreement, may perform engineering surveys, structural analysis reports, or any other testing which may be required in order for Lessee to occupy the Premises as more fully described in Paragraph 2 (a), Co) and (c) above. Any materially adverse test results may entitle Lessee to terminate this Agreement under Paragraph 2 (b). 4. INTERFERENCE. a. Lessee agrees not to cause interference to the radio frequency communication operations of Lessor, Lessor's tenants, or anyone holding an agreement with Lessor to operate on the Property during the site testing phase. b. After the execution of this Agreement, Lessee shall not install or permit the installation of any equipment interfering with or restricting the operations of Lessor, Lessor's tenants, or anyone holding an agreement with Lessor. Such interference shall be deemed a material breach of this Agreement by Lessee. Should such interference occur, LEASE AGREEMENT. Page 2 Convergence Technologiea - 2/7/01 lq Lessee shall promptly take all necessary action, at no cost to Lessor, to eliminate the cause of said interference, including, if necessary removing equipment creating said interference. c. In the event that any other tenant's activities interfere with the Lessee's use of the City property, and the Lessee cannot resolve this interference with the other tenants, the Lessee may, upon thirty (30) days notice to the City, terminate this lease. d. Lessee shall operate its equipment in compliance with all Federal Communications Commission (FCC) regulations and in compliance with the applicable standards for this site as established by the Western Washington Cooperative Interference Committee (WWCIC) Engineering Standard #6 Rev. C (09-97) for Radio Transmitting and Receiving Devices and FM Broadcast, hereinafter incorporating future amendments. The initial term of this Agreement shall be for a period of three (3) years ("Term") commencing upon ,20 , ("Commencement Date") and shall terminate on the third anniversary of the Commencement Date, unless otherwise provided in Paragraph 11. Lessee shall have the fight to renew the Agreement for two (2) successive three (3) year periods ("Renewal Terms"), upon the same terms and conditions in effect during ihe Term except as to rent which may be re-negotiated. Lessee shall exercise its renewal fights by providing written notice to Lessor of its intention to renew not more than one hundred twenty (120) days nor less than sixty (60) days prior to the expiration of the Term or any Renewal Term. 6. RENT. a. Lessee agrees to pay to Lessor as rent the sum of One Hundred and No/100 Dollars ($100.00) ($50/antenna and $50/transmitter) per month ("Rent") within ten (10) business days following the Commencement Date. Should the Commencement Date occur on a day other than the first day of the month ("Due Date") during the Term or Renewal Terms, Rent shall be prorated. Rent payments shall be payable to Lessor. b. At the beginning of each successive year thereafter the monthly rent shall automatically be adjusted based upon the CPI for all urban consumers, Seattle-Tacoma index (1982-84=100) as published by the Bureau of Labor Statistics for the last month for which statistics are posted prior to the effective date above. However, rent shall not, in any case, decrease. c. Any payments received after ten (10) business days following the Due Date shall include a late payment penalty of 2% of the annual rental fee for each day or part thereof past the due date. 7. TAXES. LEASE AGREEMENT - Page 3 Conv~gence Technologies - 2/7/01 Lessee agrees to pay any portion of personal property taxes which may be assessed upon the Premises as a direct cause of Lessee's Installation. Lessor shall provide evidence of such assessment within a timely manner. 8. INSURANCE. The Lessee shall, as a condition of the Lease, secure and maintain the following liability insurance policies insuring both the Lessee and Lessor and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the Lessee: a. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: (1) $1,000,000.00 for bodily injury or death to each person; (2) $1,000,000.00 for property damage resulting from any one accident; and (3) $1,000,000.00 for all other types of liability. b. The liability insurance policies required by this Section shall be maintained by the Lessee throughout the term of the Lease, and such other period of time during which the Lessee is operating without a Lease hereunder, or is engaged in the removal of its telecommunications facilities. The Lessee shall provide an insurance certificate, together with an ~ndorsement designating the Lessor and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insurers, to the Lessor prior to the commencement of any work or installation of any facilities pursuant to said Lease. Any deductibles or self-insured retentions must be declared to and approved by the Lessor. Payment of deductibles and self-insured retentions shall be the sole responsibility of the Lessee. The Lessee's insurance shall be primary insurance as respects the Lessor, its officers, officials, employees, agents, consultants, and volunteers. Any insurance maintained by the Lessor, its officers, officials, employees, consultants, agents, and volunteers shall be in excess of the Lessee's insurance and shall not contribute with it. The Lessor shall be provided thirty (30) days advance notice of cancellation of any coverages required above; c. Within thirty (30) days after receipt by the Lessor of said notice, and in no event later than fifteen (15) days prior to said cancellation or intent not to renew, the Lessee shall obtain and furnish to the Lessor replacement insurance policies meeting the requirements of this Section. 9. GENERAL INDEMNIFICATION. LEA.gE AGREEMENT - Page 4 Con~ T~:hnologi~s - 2/7/01 Lessee covenants not to bring suit against the Lessor and hereby agrees to defend, indemnify, and hold harmless the Lessor, its appointed and elected officers, employees, agents and volunteers from and against any and all liability, loss, costs, damage, and expense, including costs and attorney fees in defense thereof, and including claims by the Lessee's own employees to which the Lessee might otherwise be immune under Title 51 RCW, because of actions, claims or lawsuits for damages resulting from personal or bodily injury, including death at any time resulting therefrom, sustained or alleged to have been sustained by any person or persons, and on account of damage to property, arising or alleged to have arisen directly or indirectly out of or in consequence of the performance of this Agreement, whether such injuries to persons or damage to property is due to the negligence of the Lessee, its agents, employees, representatives or assigns. This provision shall be inapplicable to the extent such damage or injury is judicially found to be caused by the sole negligence of the Lessor. This provision waiving immunity for claims arising out of Title 51 RCW was specifically negotiated by the parties. Lessee assumes the risk of damage to its facilities located in the Lessor's public ways, rights-of-way, easements and property from activities conducted by the Lessor, its officers, employees, agents, and volunteers. The Lessee releases and waives any and all claims against the Lessor, its officers, employees, agents, and volunteers for damage to or destruction of the Lessee's facilities except to the extent any such damage or destruction is caused by the willful and malicious action of the Lessor, its officers, employees, agents, or volunteers. 10. RIGHTS GRANTED. This Lease does not convey any right, title or interest in the City Property, but shall be deemed to convey only the fight to use and occupy the City Property for the limited purposes and term stated in the Lease. Further, this Lease shall not be construed as any warranty of title. 11. TERMINATION. Lessee may terminate this Agreement without further liability on prior written notice to Lessor, which shall become effective sixty (60) days after the date notice is mailed 12. DEFAULT AND RIGHT TO CURE. Lessor shall have the right to terminate this Agreement by written notice to take effect immediately if Lessee fails to make its rental payment when due and does not cure such failure within ten (10) days of Lessor's notice thereofi In addition either party shall have the right to terminate this Agreement on written notice to take effect immediately if the other party (i) fails to perform any other covenant for a period of forty-five (45) days after receipt of notice in accordance with Paragraph 14; or (ii) commits a material breach of this Agreement and fails within forty-five (45) days of the first party's notice thereof to commence curing the breach and continuously and diligently pursues such cure to its completion. 13. NOTICES. LEASE AGREEMENT - Page 5 C.o~vergence Technologies. 2f7/01 Unless otherwise provided herein, any notice or demand required to be given herein shall be given by certified or registered mail, return receipt requested or reliable overnight courier to the address of Lessee and Lessor as set forth below: LESSOR: LESSEE: City of Bremerton Convergence Technologies, Inc. Administrative Services Director Right of Access - Coordinator 239 Fourth Street 1202 Sheridan Road Bremerton, WA 98337 Bremerton, WA 98310 Lessee and Lessor may designate a change of notice address by giving written notice to the other party. 14. AMENDMENT. No amendment or modification to any provision of this Agreement shall be valid unless made in writing and agreed to and signed by the appropriate parties who have attested and executed this Agreement. 15. GENERAL CONDITIONS. a. 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. b. 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 relinquishment of such right or power at any time be taken to be a waiver of any other breach. c. Applicable Law & Venue: This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington and, in the event of dispute, the venue of any action brought hereunder shall be in Kitsap County Superior Court. d. Severability: If any provision of this Agreement is deemed invalid or nonenforceable, the remainder of this Agreement shall remain in force and to the fullest extent as permitted by law. LEA..qE AGREEMENT - Page 6 Convergmo~ Tedmologi~ - 2/7/01 CONVERGENCE TECHNOLOGIES, INC. Date: BY: JOHN STOCKWELL, President CITY OF BREMERTON Date: BY: LYNN S. HORTON, Mayor DEPARTMENTAL APPROVAL: W. EUGENE SAMPLEY, Director Public Works & Utilities APPROVED AS TO FORM: DAVID B. ST.PIERRE, Assistant City Attorney RECEIVED FOR FILING: KA~rILEEN L. McCLUSKEY, City Clerk 'Attachments: Exhibit A: Description of Premises Exhibit B: Description of Equipment H H H LEASE AGREEMENT - Pa~¢ 7 - C,~v~g~nce T~mologie~ - 2/7/01 State of Washington ) ) SS. County of Kitsap ) On this __ day of ., 20 , before me, the undersigned Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , of , the organization that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said organization, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument. In witness whereofI have hereunto set my hand and affixed my official seal the day and year first above' written. Notary Public in and for the State of Washington Residing at My commission expires: State of Washington ) County of Kitsap ) On this __ day of ., 20 , personally appeared Lynn S. Hort°n to me known to be the Mayor of the City of Bremerton, a municipal corporation, that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument. In witness whereofI have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public in and for the State of Washington Residing at My commission expires: LEASE AGREEMENT - Page 8 Convergence Technologies- Zr7/01 w x T ~ E $ S T ~: EXHIBIT"A" X. Premises. The City ia =he legal owner og the following described real property: A parcel of land locate~ in ~he N.W. 1/4 S.W. 1/4 of the N.E. 1/4 of Sec=ion i Township N., ~nge i East of ~e Willamette M~idian. as cs-18 Coas= Gu~d Site located a= Cheil .... and ol~pus Avenue in East ~reme~on; ALSO: A 40' x S0' parcel of land lo~=ed in =he 1/4 of ~a N.E. 1/4 of Se~ion 1, T. 24 N., R. 1 E. of the Wi!l~et=e Meridian. Parcel within ~e boundariss of a ten acre ~arcml (660, x 660~) o~e~ by =h~ city of bonded by Cheil Street on the North and Forest Drive on =he East, more ~articular!y described by City of Breme~on S~vey Pla~, ~hibit "A" which is attached hereto and made 'a pa~ hereof ~y ~is telerate. Feb- 12-01 06: 37P P.02 EXHIBIT "B" SITE: BREMERTON-CllERYL SCHEDULE B ........ LESSEE'S ANTENNA AND EQUIPMENT SPECIFICATIONS Frequ.ency: Transmit 2A000-2.~g35Ghz Receive: 2.4000-2.4835Ghz Antenna: Type Quantity Product No. Dimension (Approx) Bi-direction 1 HG2415U Weight 1.16 kg Length 1.78 m Width 2.5cm ~.a.b!,e.: Amphenol Coaxial TWB 400 or Equiv, Diamctor I cm Equi_nment: 1) 19" relay rack equipped with shelf Air Conditioning: Existing air conditioning equipment will support this equipment Subst. itution: Convcrgcncc Tcchnologics, Inc. reserves the right to substitute similar model and stylc of antenna or equipment. initials EXHIBIT "B" HyperGain TM Model HG2415U 2.4 GHz 15 dBi Omnidirectional Antenna Electrical Characteristics Frequency 2400 - 2483.5 MHz Gain 15 dBi Impedance 50 Ohm VSWR 1: 1.5 max Maximum Input Power 100 W Vertical Pattern (dB) Mechanical Characteristics Weight 1.16 kg Length 1.78 m Radome Material Fiberglass Finish Powdercoat Mounting 2.5" diameter mast max. EXHIBIT "B" lperGain HG2415U Mount antenna on west leg of tower DB589-Y Antenna (D 03 ork Platform DB538-G Antenna DB538-G Antenna CONVERGENCE TECHNOLOGIES, INC. Wireless Access Antenna Bremerton-Coast Guard Tower Cheryl Avenue Antenna Schematic* SIZE I FSCM NO OWG NO REV I~ 'r ElevationI Org:,,_ "h~: East Elevation j. Stockwell Jan. 3O. 2001 SCALE ,,,=20~. 0inl SHEET 1 OF 1 I AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: Purchased Services Agreement w/ FOR AGENDA OF: March ~,, 2001 Washington Timberland Management ORIGINATING DEPT: Public Works,.~_~l. for Harvest Management, Marketing ORIGINATOR: Forestry Manager and Forestry Services DATE SUBMITTED: 2/27/01 2. CLEARANCES (comment on baftk i~lt ~a~): $. EXHIBITS: Director PW&U ~~ ~ ~ Purchased Services Agreement Ass't City Attorney ~ City Treasurer ' ~ ~ Purchasing Manager Risk Manager Operations Committee -PRE-OOUNC I l 3/7/O1 Fiscal & Budget Committee PRE-COUNC I L 3/7/01 ENDORSEMENT ~ INFORMATION ~ APPROVED BY COUNCIL PRF~ENT FOR SUBMITTAL: ~YOR~ ~ ~ ~ L COUNC~ P~S~EN( ~~r~~/~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Washington Timberland Management (WTM) will assist in completing Forest Practice applications, conduct field marking, provide logging plans, operators, operations management, and marketing for highest value, on selected second and third growth timber stands within Water Utility forest land as specified by the Forestry Manager. Harvest will consist of primarily uneven-age and selective operations. Residual stocking and leave tree selection will be determined by the Forestry Manager. This action will further the overall goals of the Forest Management Plan and will substantially contribute to the Water (over) 8. RECOMMENDATION Motion to authorize the Mayor to execute thc attached purchased services agreement with Washington Timberland Management. 9. RESPONSIBLE OFFICIAL: Public Works/Util. Director ENFORCEMENT OFFICIAL: Forestry Manager EXPIRATION DATE: December 31, 2001 REVIEW DATE: NA 10. NOTICE OF ACTION PULLEDCOUNCIL ~ DIRECTIVE: TABLED APPROVED DISAPPROVED D A~D~T~~~._ 11. AGENDA BILL NO: b/-- 1 2. CLEARANCE COMMENTS: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION (continued from page 1) Utility's revenue for 2001. WTM will be compensated by receiving 9% of thc delivered log price on harvested timber. WTM was the only respondent in recent RFQs for forestry related purchased services. 5. IMPACT ON NON-PASSAGE: Reduction of annual timber income, which negatively impacts cash flow for the Water Utility. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES: Staffing: This purchased service supplements small Forestry. Division staff and enhances abihty of staff to complete other timber sale projects for revenue as well as other Division responsibilities. Budget: Component of projected annual revenue for the Water Utility. Facilities/EqUipment: NA 7. RESEARCH SOURCES: Forestry Manager 31 PURCHASED SERVICES AGREEMENT Timber Harvest Management, Marketing and Forestry Services THIS IS A CONTRACT for purchased services, made and entered into this __ day of' ,2001, by and between the City of Bremerton, hereinafter called "City" and Washington Timberland Management, Inc., hereinafter called "Contractor," referred to collectively as the "Parties." WHEREAS, the purpose of'this contract is to provide timber harvest management, marketing, and forestry services to the City of Bremerton. NOW, THEREFORE, in consideration of the terms and conditions contained herein, and attached and incorporated and made a part hereof, the City and Contractor mutually agree that Contractor shall provide timber harvest management, marketing, and forestry services to the City of Bremerton as follows: I. Scope: The Contractor shall provide all performance of work for timber harvest management, marketing, and forestry services, including all labor, materials, transportation, equipment, supplies, and services necessary for and reasonably incidental to the completion of' all work as set out in the Scope of Work, which is attached as Exhibit A and incorporated herein by reference. The Scope of Work may be modified only pursuant to Section VII. D of this Agreement. If the Scope of Work provides for unspecified additional services the City may request, such services shall only be performed upon the express, written request of the City. H. Term: This Agreement commences on the date of execution of this Agreement and terminates on December 31, 2001 unless another date is substituted pursuant to Sections VII. D. or IX. HI. Compensation: The City agrees to pay Contractor according to the terms and at a time and in a manner provided for in the fee schedule attached as Exhibit B and incorporated herein by reference. It is understood to be mutually beneficial to both Parties to deliver harvested timber to markets of highest value. Contractor's charges and bills shall conform to the fee schedule at Exhibit B. The Contractor shall submit regular billing statements describing services rendered and the amount charged for each service. The descriptions shall conform to and fall within the categories set out in the Scope of Work. Upon receipt of a conforming billing statement, the City shall promptly process payment. Contractor shall not perform work beyond the Scope of Work, nor shall be compensated for such work, unless the Scope of Work or amount of compensation is modified pursuant to this Agreement. Any out-of-scope services requested by and approved by the City Forestry Manager shall be compensated for as set out in the attached fee schedule at Exhibit B. Bremerton/Washington Timberland Management Purchased Services Agreement If a billing statement does not conform to this Agreement, the City may withhold payment until the statement is brought into compliance. Such withholding does not relieve Contractor of its obligations under this Agreement. IV. Relationship of Parties: Contractor is skilled in the matters addressed in the Scope of Work and is performing independent functions and responsibilities within its field of expertise. Contractor and its personnel are independent contractors and not employees of the City. Contractor and its personnel have no authority to bind the City or to control the City' s employees and other contractors. As an independent contractor, Contractor is responsible for its own management. The City's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over Contractor or its personnel. Contractor shall work under the direction of the City's Forestry Manager. V. Licenses & Taxes: Contractor shall possess a current Bremerton Business License and regulatory licenses required to fulfill Contractor's obligations under this contract. As an independent contractor, Contractor is responsible for payment of all taxes and licensing fees necessary to perform its obligations under this Agreement. These taxes and fees include but are not limited to State industrial insurance, B&O, and City business licensing. If any taxes or fees due the City have been declared delinquent, Contractor, by this agreement, assigns any payments due under this contract to the City Clerk for payment of such taxes The City may also withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Contractor. VI. Insurance and Hold Harmless: Prior to the commencement date of this Agreement, Contractor shall provide Certificates of Insurance to the City's Risk Manager verifying the coverage under a comprehensive general liability ("CGL") policy providing coverage of at least $500,000 per occurrence and including bodily injury and property damage. The CGL shall name the City as an additional insured. The CGL policy shall remain in full force and effect, and provide coverage for the full term of this Agreement. Insurer shall provide the Risk Manager with 30 days' written notice of any cancellation or change of coverage of the policy. Contractor shall be solely responsible for the acts and failures to act of its personnel, which arise in any way out of performance of this Agreement. Contractor agrees to defend, indemnify, and hold harmless the City and its officials and employees from and against all liability, loss, damages, and expenses, including costs and attorneys' fees, resulting from actions, claims, and lawsuits arising or alleged to have arisen, in whole or in part, out of or in consequence of the acts or failures to act of Contractor, its employees, its subcontractors, its agents, or its assigns in the performance of this Agreement. The City and Contractor have specifically negotiated Contractor's waiver of its immunity under Title 51 RCW, which is hereby waived for purposes of Contractor's indemnification and hold harmless of the City, including the duty to defend. This provision shall be inapplicable to the extent such action, claim, or lawsuit is judicially found to arise solely from the acts or failures to act of the City. // Bremerton/Washington Timberland Management Purchased Services Agreement VII. General Conditions: A. Reports and Information: When requested by the City, Contractor shall furnish periodic reports and documents on matters covered by this Agreement. The reports and documents shall be furnished in the time and form requested. Contractor shall maintain accounting records in accordance with Generally Accepted Accounting Principles (GAAP) to substantiate all billed amounts. B. Entire Agreement: This Agreement and its Exhibits constitutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. C. Severability: Should any part of this Agreement be found void, the balance of the Agreement shall remain in full force and effect. D. Modification: This Agreement may only be modified by written instrument signed by both Parties. E. Notices: Notices shall be in writing and delivered to the following addresses: City Address Contractor Address Forestry Manager Gary Hanson, President Bremerton Public Works & Utilities Washington Timberland Management, Inc. 3027 Olympus Drive P.O. Box 130 Bremerton, WA 98310 Union, WA 98592 F. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. G. Compliance with Laws: Contractor shall comply with all applicable Federal, State, and local laws in performing its obligations under this Agreement. H. Choice of Law and Venue: This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. I. Attorneys' Fees: The substantially prevailing Party in any litigation arising out of this Agreement shall be entitled to its reasonable attorneys' fees and court costs. VIII. Nondiscrimination: Contractor 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 for employment actions based on bona fide occupational qualification. Bremerton/Washington Timberland Management Purchased Services Agreement IX. Termination: This Agreement may be terminated, at will, by either Party upon ninety (90) days' notice to the other Party. This Agreement may be immediately terminated for cause by a Party if the other Party substantially fails to perform through no fault of the terminating Party, and the non-performing Party does not commence correction of the failure of performance within five days of the terminating Party's sending notice to the non-performing Party. Upon termination, the City shall be entitled to copies of all Contractor's records and data pertaining to performance under this contract. The City will pay Contractor for services rendered up until the date of termination upon receipt of invoices substantiating the extent of satisfactory services rendered. X. Successors and Assigns: The City and Contractor each agree to be bound to the other party in respect to all covenants, agreements, and obligations contained in this contract. Neither party shall assign the contract in part or as a whole, without the written consent of the other. IN WITNESS WHEREOF the parties hereto have executed this Contract the date and year indicated. WASHINGTON TIMBERLAND MANAGEMENT Gary Hanson, President date CITY OF BREMERTON Lynn S. Horton, Mayor date Departmental Approval W. Eugene Sampley, Director Public Works & Utilities Approved as to form: David B. St. Pierre Assistant City Attorney Received for Filing: Kathleen McCluskey, City Clerk Bremerton/Washington Timberland Management Purchased Services Agreement EXHIBIT A Scope of Services for Timber Harvest Management, Marketing and Forestry Services Deliverables: For harvest units within Water Utility forest lands selected by the Forestry Manager, Washington Timberland Management, Inc. shall provide the following: 1) Complete or assist in completing, Forest Practices AppBcations in a form acceptable to the Washington Dept. of Natural Resources, by a date mutually agreeable to the City and Contractor. 2) Determine appropriate logging system to economically harvest timber on selected units. Harvest type (even-age, uneven-age, and/or combination) shall be determined by the Forestry Manager. Residual spacing, leave tree, and harvest tree selection to be prescribed by Forestry Manager in consultation with Contractor on each harvest unit. 3) Field locate and mark unit boundaries and new road construction centerlines. 4) Coordinate, and supervise subcontractors in road construction and betterment, harvesting, and hauling operations on specified road segments and harvest units, per above items and in conformance with current or revised forest practice regulations. Operations are to be conducted so as to achieve the following general conditions upon completion: · Achieve spacing requirements and leave tree selection as directed by Forestry Manager · Minimize damage to all leave trees · Harvest areas requiring reforestation shall be left in a condition conducive to planting · Non-merchantable tops and limbs shall be left within the harvest unit providing no large accumulations of slash are created as determined by the Forestry Manager · Slash at landings shall be machine-piled and fire-trailed or left in a condition conducive to subsequent salvage · Roads, yarding corridors, and skid trails shall be left in a condition to prevent erosion as prescribed by Forest Practice regulations 5) Provide log accountability records and timber payment disbursements including periodic and final accounting statements (more fully specified in Schedule B). Bremerton/Washington Timberland Management Purchased Services Agreement Exhibit A EXHIBIT B Fee Schedule for Timber Harvest, Marketing and Forestry Services Logging and Marketing 1) Contractor shall receive nine percent (9%) of the delivered log price for timber harvested as part of this Agreement. No compensation will be paid to Contractor for pulp sort prices under $26.00/ton delivered price. Delivered log prices shall be from the best possible domestic markets (all City timber is "export restricted" under WAC 240-15; all pertinent State and Federal regulations apply). 2) The following shall be deducted from log proceeds: · Contractor Fee (9%) · Authorized logging and haul costs · Authorized road building and betterment expenses · Forest Excise and B&O taxes 3) Contractor shall provide the City with a periodic summary in a format approved by the Forestry Manager, showing market, volume and grade delivered, price per unit, total mill payments, disbursements to the City, contractor, and subcontractor, as well as other expenses described above or required by the Forestry Manager. Out of Scope Services Any out-of-scope services approved by the Forestry Manager shall be paid for on a time and materials basis according to the following schedule: Miscellaneous Forestry Services $50.00/hour Mileage $ 0.325/mile Contractor shall submit a statement describing the services rendered with a breakdown for hours and rate as authorized under this Agreement. The City, upon receipt of the completed statement, shall promptly process claim for payment. Bremerton/Washington Timberland Management Purchased Services Agreement Exhibit B AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FI RST READING FORAGENDA OF: March 7, 2000 Ordinance # Approving an Interlocal ORIGINATING DEPT: Public Works & Utilities Agreement with the Tracyton Water District and ORIGINATOR: W.E. Sampley, Director Waiving the Provisions of BMC 15.02.040. DATE SUBMITTED: February 20, 2000 2. CLEARANCES: (Commentonb~'ff~~) 3. EXH1R~S: Director PW&U ~/~ ~ _;,'~t 9~ · Ordinance # f~[City Attorney ..~~~ _ · Interlocal Agreement City Treasurer ' 'q,,~~ · Tracyton Water District Map Operations Committee PRE-C0UNC I k 3/7/(¥ Fiscal & Budget Comm. PRE-¢0UNC I L 3/7/01 ENDORSEMENT )(' INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: // f 4. stnvmAR¥ SXATE NX REOta r voR couNca % ION: / On February 29, 2000, the Tracyton Water district and City of Bremerton entered into an interlocal agreement for the design, construction and financing of water system upgrades within Tracyton Water District in anticipation of District dissolution. The City and District successfully SeCured a Public Works Trust Fund loan for the design and a State Revolving Fund loan for construction of the project. The attached Interlocal Agreement completes the agreement between the City and the District providing for an inter-govemmental loan for cash flow requirements during construction, setting forth the means for repayment of all loans, and other provisions for rates, front footage 8. RECOMMENDATION: 1) I move that the City Council approve, on first reading, Ordinance # __ adopting the Interlocal A~eement between the City of Bremerton and the Tracyton Water District, waiving the provisions of BMC 15.02.040 as it applies to that Agreement, and directing the Mayor to execute the attached Agreement. 2) I move that the City Council pass Ordinance # __ on second reading. 9. RESPONSIBI,E OFFICIAL: Director of Public Works & Utilities ENFORCEMENT OFFICIAL: Director of Public Works & Utilities EXPIRATION DATE: NA REVIEW DATE: NA 10. NOTICE OF ACHON PUl ,I ,ED TABLED APPROVED DISAPPROVED ~id~ ~NDE~ COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL NO: 0 t ~ & 6 E~ 2. CLEARANCE COMMENTS: 4. SUMMARY STATEMENT (Continued) fees and the effect of annexation of properties within the benefit area. Financing of these improvements are structured for District dissolution and City assumption of the District's debt. Additionally, the attached Ordinance # waives, prior to dissolution, the provisions ofBMC 15.02.040 (SERVICE BEYOND CITY LIMITS) for all properties served by the Tracyton Water District that at the time of dissolution of the District become water service customers of the City of Bremerton. Staff recommends that City Council approve Ordinance # approving the Interlocal Agreement between the City of Bremerton and the Tracyton Water District, and waiving the provisions of BMC 15.02.040. 5. IMPACT ON NON-PASSAGE: The Tracyton Water District will not be able to improve their water system for assumption by the Bremerton Water System. The District will continue to exist and provide inadequate water service to ks customers, or will be assumed by another entity. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES, EQUIPMENT OR OTItER RESOURCES: No impact on budget. All work performed in accordance with this Interlocal Agreement will be funded by the Tracyton Water District. This work is included in the PW&U work program for 2000 and 2001. 7. RESEARCH SOURCES: {~970122_1 .ab} ORDINANCE # ORDINANCE to approve and adopt an interlocal agreement with the Tracyton Water District regarding financing the design and construction of water system upgrades within Tracyton Water District, and waive the provisions of BMC 15.02.040 as it applies to that agreement. WHEREAS, the City of Bremerton (CITY) and the Tracyton Water District (DISTRICT), by agreement dated June 29, 1966 provide water services to customers within the DISTRICT's water service area, and WHEREAS, the CITY and the DISTRICT entered into an agreement dated February 29, 2000 for the Design, Construction and Financing of Water System Upgrades within Tracyton Water District in Anticipation of District Dissolution, and WHEREAS, the CITY and the DISTRICT successfully secured a Public Works Trust Fund loan for the design and a State Revolving Fund loan for construction of the project, and WHEREAS, the CITY and the DISTRICT have negotiated the attached interlocal agreement Regarding Financing the Design and Construction of Water System Upgrades within Tracyton Water District, and WHEREAS, the CITY will assume the DISTRICT's water service area upon the DISTRICT's dissolution, and WHEREAS, properties served by the District prior to dissolution of the District will be considered customers of the CITY at the time of dissolution, and WHEREAS, the provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, should not apply to such existing service prior to dissolution; now therefore: THE CITY OF BREMERTON DOES HEREBY ORDAIN: SECTION 1. Interlocal Agreement. The attached interlocal agreement Regarding Financing the Design and Construction of Water System Upgrades within Tracyton Water District is hereby approved and adopted. SECTION 2. Application of BMC 15.02.040 to Existing Water Service. The provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall not apply to properties served by the District prior to dissolution of the DISTRICT. SECTION 3. Application of BMC 15.02.040 to New Water Service. The provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall apply to all properties within the Tracyton Water District service area requesting utility service from the CITY after the effective date of dissolution of the DISTRICT. ATTACHMENT: Imerlocal Agreement Regarding Financing the Design and Construction of Water System Upgrades within Tracyton Water District APPROVED by the City Council on the first reading this __ day of__., 2001. PASSED by the City Council of the City of Bremerton this __ day of__, 2001. John Law Council President APPROVED this __ day of__. 2001 Lynn S. Horton Mayor INTERLOCAL AGREEMENT BETWEEN THE CITY OF BREMERTON AND TRACYTON WATER DISTRICT Regarding Financing the Design and Construction of Water System Upgrades within Tracyton Water District THIS INTERLOCAL AGREEMENT is made and entered into this __ day of 2001, by and between the City of Bremerton (hereinafter "CITY") and Tracyton Water District (hereinafter "DISTRICT"), together referred to as the "PARTIES" WHEREAS, Chapter 39.34 RCW permits local government units to make the most efficient use of their power by enabling them to cooperate to their mutual advantage and thereby to provide services and facilities in a more efficient manner, and WHEREAS, the CITY and the DISTRICT, by Agreement dated June 29, 1966 (the Service Agreement), provide water services to customers within the DISTRICT's water service area, and WHEREAS, the CITY and the DISTRICT entered into an agreement dated February 29, 2000 for the Design, Construction and Financing of Water System Upgrades within Tracyton Water District in Anticipation of District Dissolution, and WHEREAS, the DISTRICT is obligated for all costs of the Project, including, but not limited to; administration, design, procurement, construction, inspection, and securing financing, including Bond Counsel fees, if any, and WHEREAS, the DISTRICT, with the assistance of the CITY, secured a Public Works Trust Fund loan for the design of the Project, and WHEREAS, the DISTRICT, with the assistance of the CITY, secured a State Revolving Fund loan for the capital construction of the Project, and WHEREAS, the PARTIES desire to establish the method by which capital construction of the Project, including construction, inspection, and administration will be financed, and WHEREAS, the CITY is, subject to reimbursement by the DISTRICT, making and will continue to make payments to consultants and contractors for design and construction of the Project, and WHEREAS, there is a need to provide for cash flow needs for such payments by the DISTRICT to the CITY while reimbursement from the State Revolving Fund is processed, and Inter|ocal Agreement -2/27/01 Tracyton System Improvements Page 1 of 4 WHEREAS, the DISTRICT desires to establish the rate formula for its customers in the event of dissolution of the DISTRICT. NOW THEREFORE, the PARTIES through their respective legislative bodies in consideration of the mutual covenants contained herein, do agree as follows: 1. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions by which the CITY, on behalf of the DISTRICT, will design, construct and finance water system upgrades within Tracyton Water District and the terms and conditions by which DISTRICT will reimburse the CITY for those costs. 2. PRIOR AGREEMENT. The terms and conditions of the agreement between the PARTIES dated February 29, 2000 remain in effect. Said agreement is incorporated herein by this reference. 3. CASH FLOW FINANCING. For the purpose of meeting the cash flow requirements during the period of design and construction of the water system improvements there is hereby authorized an inter-governmental loan from the CITY to the DISTRICT in an amount not to exceed five hundred thousand dollars ($500,000). This loan shall bear interest at the rate of 5% per annum, which shall be computed monthly and paid at the time of loan repayment. This loan may be repaid in whole or in part at any time but shall be repaid in its entirety not later than the point at which the State Revolving Fund loan to the DISTRICT is finalized. 4. LOAN DRAWS. The CITY shall, on behalf of the DISTRICT, prepare on a timely basis, reimbursement requests to the Public Works Trust Fund and the State Revolving Fund. The CITY shall pursue such reimbursements as it would in the conduct of its own business. Reimbursement requests shall be authorized, if required, by the DISTRICT and submitted to the appropriate State agency within 5 days of DISTRICT receipt. 5. PAYMENTS TO CITY. The DISTRICT shall, within 25 days of receipt of reimbursement by the Public Works Trust Fund or State Revolving Fund, reimburse CITY for costs of the Project. 6. DISTRICT LOAN PAYMENTS. The DISTRICT intends to repay its loans from the Public Works Trust Fund and the State Revolving Fund from water surcharges levied on DISTRICT customers. These surcharges will be levied by the DISTRICT until such time as the DISTRICT is dissolved. After DISTRICT dissolution, the CITY will levy necessary surcharges and make loan payments to the Public Works Trust Fund and the State Revolving Fund until such time as the loans are repaid. 7. DISTRICT SERVICE AREA. The service area of the DISTRICT for purposes of this agreement is set forth in EXHIBIT "A" attached hereto and made a part hereof by this reference. 8. CUSTOMER RATES. The monthly rate formula for customers within the DISTRICT service area following dissolution of the DISTRICT shall be equal to the rates charged city residents plus a surcharge sufficient to meet the debt service requirements of the DISTRICT lnterlocal Agreement -2/27/01 Tracyton System Improvements Page 2 of 4 loans plus a lighting surcharge if appropriate. At such time as the DISTRICT loans are fully repaid, DISTRICT customers shall be charged rates as county residents plus a lighting surcharge if appropriate. 9. FRONT FOOTAGE FEES - DISCOUNT. It is agreed that Front Footage Fees, (FFF), within the DISTRICT service area will be equal to those charged to CITY's customers in unincorporated Kitsap County. During calendar year 2001, these FFF will be discounted 100%. On January 1 of each year there after, the percentage of discount will be reduced by five percent (5%) until the DISTRICT FFF shall be equal to the rate charged customers in unincorporated Kitsap County. 10. ALL OTHER FEES AND CHARGES. All other fees and charges shall be equal to those charged by the CITY to its customers in unincorporated Kitsap County. 11. RATES, FEES AND CHARGES - EFFECT OF ANNEXATION. In the event that property or customers within the district service area are annexed into the CITY, such property or customers shall be subject to the same CITY rates, fees and charges as all other CITY residents. Upon such annexation, the CITY will become responsible for a portion of the DISTRICT loans then outstanding equal to the district surcharge paid by the annexed property or customers during the preceding year divided by the district surcharge paid by all property or customers during the same period. Properties served by the District prior to dissolution of the District shall be considered customers of the CITY at the time of dissolution. Prior to dissolution, the provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall not apply to such existing service. However, BMC 15.02.040 shall apply to all properties requesting utility service from the CITY after the effective date of dissolution. 12. TERM. This Agreement shall take effect upon execution of the Agreement by both CITY and DISTRICT and shall continue until the Project is completed and DISTRICT loans have been repaid. 13. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties and both parties acknowledge that, excepting the Service Agreement, there are no other agreements, written or oral, that have not been included by reference in this Agreement. 14. AMENDMENTS. The parties hereby further agree that this Agreement cannot be amended or modified without the written concurrence of both parties. 15. NOTICES. Any notices required to be given by CITY to DISTRICT or by DISTRICT to the CITY shall be in writing and delivered to the parties at the following addresses: City of Bremerton Tracyton Water District Department of Public Works and Utilities P.O. Box 2013 3027 Olympus Drive Silverdale, Washington 98383 Bremerton, Washington 98310 Interlocal Agreement -2/27/01 Tracyton System Improvements Page 3 of 4 16. VENUE. This Agreement shall be constructed and interpreted in accordance with the laws of the State of Washington. 17. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) Applicable State statutes and regulations; (b) This Agreement, including any other express provisions of this Agreement whether incorporated by reference or otherwise; and (c) The Service Agreement; (d) The terms and conditions of the funds being distributed. 18. SEVERABILITY. If any section of this Agreement is adjudicated to be invalid, such action shall not affect the validity of any section not so adjudged. This Agreement approved and entered into by the undersigned local government units the day and year first above written. CITY OF BREMERTON TRACYTON WATER DISTRICT LYNN S. HORTON, Mayor GARY KEENAN, Commissioner DEPARTMENT APPROVAL: TIM KNAPP, Commissioner W. EUGENE SAMPLEY, P.E. Director of Public Works and Utilities LEE WINTEROWD, Commissioner APPROVED AS TO FORM: DAVID ST. PIERRE Assistant City Attomey ATTEST: ATTEST: KATHLEEN McCLUSKEY, City Clerk ., Secretary Intedocal Agreement -2/27/01 Tracyton System Improvements Page 4 of 4 EXHIBIT A INTERLOCAL AGREEMENT BETWEEN THE CITY OF BREMERTON AND TRACYTON WATER DISTRICT TRACYTON SERVICE AREA TRACYTON WATER DISTRICT DISTRICT & SERVICE AREA BOUNDARIES SERVICE AREA BOUNDARY ~,'//~ WATER DISTRICT BOUNDARY I("¢'~'~ '-':eflects : cn~r, qe to [:)oundor¥' dc:ted 1//26/01 7OGO TRACYTON '4A~ DWC