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HomeMy WebLinkAbout01/27/04 AGENDA FILE 239 4th Street · Bremerton, WA 98337 · Phone (360) 478-5280 · Fax (360) 478-5251 * * * AMENDED TO INCLUDE EXECUTIVE SESSION * * * CITY COUNCIL MEETING AGENDA TUESDAY - ,JANUARY 27, 2004 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in Council Conference Room A. FISCAL & BUDGET and OPERATIONS COMMITrEE B. General Council Business 2. CALL TO ORDER: 5:30 P.M. in Council Chambers A. Pledge of Allegiance B. Invocation 3. CONSENT AGENDA A. Minutes of Meeting - December 16, 2003 (#AB04-006) B. Minutes of Meeting - December 23, 2003 (#AB04-007) C. Minutes of Meeting - December 30, 2003 (#AB04-008) 4. CLAIMS/CHECK REGISTERS 5. MAYOR'S REPORT 6. NEW BUSINESS A. Memorandum of Agreement between the City of Bremerton and PSNS regarding Transfer of Ownership of Building 50 (#AB04-009) B. Purchase of Liability Surety Insurance (#AB04-010) C. Interlocal Agreement between the City of Bremerton and Tracyton Water District for Transfer of the District Water System to the City (#AB04-011 ) 7. PUBLIC HEARINGS - ORDINANCES & RESOLUTIONS A. Ordinance (First Reading) Amending BMC 21.02.150 regarding Unlisted Uses and BMC 21.02.070 Definitions (#AB04-012) B. Ordinance (First Reading) Amending BMC 21.02.152 regarding the Downtown District (#AB04-013) C. Resolution No. 2918 Authorizing an Interfund Loan to the Wastewater Utility Fund from the Equipment Rental Reserve Fund 510 (#AB04-014) 8. PUBLIC RECOGNITION - Comments limited to 3-minutes 9. COUNCIL MEMBER REPORTS 10. EXECUTIVE SESSION - The Council will reconvene in the Council Conference Room for a 15-minute Executive Session to discuss "Litigation" per R.C.W. Chapter 42.30.110 (1) (i). 11. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING E-mail: citycouncil@ci.bremerton.wa.us · Web: www. ci.bremerlon.wa.us DATE SUBMITTED: January 15, 2004 BILL # 04- AGENDA BILL CITY OF BREMERTON ~ A CITY COUNCIL SUBJECT: Minutes of Meeting - Committee Meeting Date: N/A December 16, 2003 COUNCIL MEETING Date: January2.7~ 2004 Department: City Council Presenter: Daren Nygren, Council President Phone: (360) 473-5280 SUMMARY: Attached are the minutes for the Council Meeting held December 16, 2003. ATTACHMENTS: Minutes for December 16, 2003 FISCAL IMPACTS (Include Budgeted Amount): 0 APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: CONSENT AGENDA [] OPERATIONS: COUNCIL PRESIDENT: RECOMMENDED MOTION: Move to pass the Consent Agenda as presented. COUNCIL ACTION: [] Approve [] Deny [] Table I [] Continue [] No Action TAPES #1925,#1926,& #1927 CITY COUNCIL MEETING MINUTES Tuesday, December 16, 2003 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4~ Street, Bremerton, Washington, Tuesday, December 16, 2003, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Mike Shepherd, Ed Rollman, Daren Nygren, Cecil McConnell, and Brad Gehring. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnel!, followed by the invocation provided by Ethel Mae Nelson of Our Saviour's Lutheran Church. President Arends made the following announcements: 1. The Pre-Council session was held in the Council Conference Room from 5:00 to 5:30 PM to discuss updates to the agenda; 2. Item 9A under New Business has been moved on the Agenda, and will be heard following 9F; 3. There will be an Executive Session immediately following the Council Meeting to "REVIEW LABOR NEGOTIATIONS" per RCW 42.30.140(4)(b); and 4. The next Council meeting will be held Tuesday, December 23, 2003. CONSENT AGENDA A. Contract Award to MACHINISTS, INC. for the Howell Bunger Valve Repair Project (#AB03-232) #0040 MISICIU (McConnell/Rollman) 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. #0060 MIS/C/U (McConnell/Rollman) On December 16, 2003, the Council approved payment for Check Numbers 286661 and 286662; and EFT-7967 through EFT-7970 in the total amount $819,784.65. COUNCIL MEMBER REPORTS Mike Shepherd announced the next District 5 Neighborhood meeting would be held on Thursday, December 18 from 6:30 to 8:00 P.M. at the Memorial Lutheran Church located at 10th & Veneta, and would also include a Christmas party. Ed Rollman thanked Mayor Bozeman for giving him the "Key to the City", and thanked Council staff for all they do. Daren Ny~lren explained that because he was on vacation, he was not here during the lighting of the new Christmas tree in Manette, however thanked the Parks Department, Utilities Department, Holly James, and Sherril Huff-Menees for their efforts in organizing this new tradition. Brad Gehrin~! stated that in 30 states and various counties, December 16th is celebrated as "BILL OF RIGHTS" day, and therefore reminded citizens to look at the document closely and remember all the privileges the document provides to citizens. TAPES #1925, #1926, & #1927 City Council Reg. Mtg. Minutes December 16, 2003 Page 2 of 6 MAYOR'S REPORT - There was no Mayor's Report this evening. PUBLIC RECOGNITION Mike Eliason, Government Affairs Director with the KITSAP COUNTY ASSOCIATION OF REALTORS, thanked Eric Younger and Ed Rollman for their service to the City. 8A - PROFESSIONAL SERVICES AGREEMENT WITH URS CORPORATION FOR THE WEST 580 PRESSURE ZONE UPGRADES PROJECT (#AB03-233): Gene Sampley, Director of Public Works & Utilities; and Michael Mecham, City Engineer, explained that based on an evaluation of qualified consultants, the City has selected URS CORPORATION to provide consulting engineering services for the West 580 Pressure Zone Upgrades. The project includes construction of a new pump station to serve the new West 580 Pressure Zone and construction of a water transmission main between the new pump station location and Old Clifton Road. The not-to-exceed amount of the agreement is $190,459.00. There were no comments from the public. Mr. Youn.cler asked what the total implementation of the upgrades will cost, and if there would be any repercussions if the agreement were not passed. Mr. Sampley, Director of Public Works & Utilities, answered that the completion of the West 580 Zone Upgrades would cost about $3 million, and that the developer was obligated to pay for a certain portion of the infrastructure and distribution main to the reservoir and to the Northwest Corporate Campus. It was further stated that not passing this particular agreement may make the City vulnerable. Mr. Lubovich elaborated further on the comments of Mr. Sampley, and also agreed with his assessment regarding the potential vulnerability of the City. Mr. Shepherd provided his concerns regarding this issue, and asked if the money held in trust is being held by the bankruptcy court. Mr. McConnell added that although he agreed with some of the comments made by Mr. Shepherd, the City has come too far to make a "u-turn". #0865 M/SIC (Maupin/Rollman) Move to approve a Professional Services Agreement with URS CORPORATION, to provide consulting engineering services for the West 580 Pressure Zone Upgrades project, in an amount not to exceed $190,459.00, and authorize the Mayor to finalize and execute the necessary contract documents for the agreement. Voted in favor of Motion: Nygren, Rollman, Younger, Maupin, Short, Gehring, McConnell, Arends Voted opposed to Motion: Shepherd Motion carried: 8-Yes; l-No 9B - ORDINANCE [FIRST READING] ADOPTING THE 2004 ANNUAL BUDGET; REPEALING BMC CHAPTER 3.02, 3.'10, AND 3.38; AND AMENDING BMC CHAPTER 3.36 (#AB03-227): Michael Wilson, Finance Director, stated that this ordinance adopts the City of Bremerton's 2004 Annual Budget at the Fund level as described in the Mayor's Proposed 2004 Budget. Two corrections were pointed out: 1) Each of the Departments will reflect a decrease for the funds removed due to IT redistribution for IT Services; and 2) BMC 3.36.020 "The Contingency Reserve Fund" shall be amended. Helen Miller stated that after sitting through quite a few Budget Sessions, it was her understanding that the Mayor was going to be asked to reduce staff by about $380,000, but did not see it in any of the documentation. TAPES #1925, #1926, & #1927 City Council Reg. Mtg. Minutes December 16, 2003 Page 3 of 6 Prior to opening the discussion to the Council, Deputy City Clerk Paula Johnston provided a briefing on the parliamentarian procedures... #1185 MISlCIU (YoungedShorD Main Motion to approve an ordinance on first reading, adopting the City of Bremerton's 2004 Annual Budget. No vote was taken at this time, as the discussion began. The Council members provided their comments and asked numerous questions. Some of those comments have been summadzed as follows... Mr. Youn~ler thanked the Council for their efforts in working to balance this budget then discussed the highlights of the main 18-points summarized by members of the Fiscal & Budget Committee. Mr. Shepherd expressed his concern at the non-collaborative effort in presenting this budget prior to discussing "Police Special Projects" and "Jail" expenditures. Mr. McConnell added that although the City Council spent a lot of time with this budget, he does not believe that enough time was spent looking for ways to cut the budget. Mr. Ny,qren acknowledged that the budget was a challenge, but pointed out that Public Safety was being protected and that Street funds were increased to improve the roads. Mr. Short offered his comments, and also reminded the public that the Council is committed to re- looking at the budget mid-year. He specifically asked for clarification on the BKAT financial structure. Mr. Wilson explained that 25% of the BKAT Managers salary has historically come from the General Fund through the Executive Budget. However, there is a gap between what the City is able to fund the position at and what funding the Kitsap County is able to offer, so the City must increase the amount in the budget to cover this difference. Mr. Rollman expressed his frustration with the process used to present this budget to the Council this year, which he believes was "too late", and now the Council is doing its best to work with it. He also expressed concerns over increasing health care costs for employees, would like to see more emphasis placed on public safety, and suggested some changes in the management of and marketing for Ivy Green Cemetery. Mr. Gehrin¢l stated that he was new to this process, and although he has seen many good things in the budget, he is not comfortable increasing taxes, or not looking at positions to determine their value. He further stated that a proposed reorganization should not be "revenue neutral" but rather provide an opportunity for the City to save some money. Mr. Maupin agreed that the budget process used this year was less than perfect, and although it would have been more beneficial for the Council to have been involved earlier, he thanked the Council and the Administration for their efforts in working through this process and keeping the lines of communication open. He particularly thanked members of the Fiscal & Budget Committee for spending the additional time to review the budget and providing their recommendations. TAPE #1926 Mrs. Arends provided her comments on the budget, and added her regrets that that Council was not included earlier in the process. She expressed her appreciation for all of the Departments, and thanked them for the good work they do, even when additional work is added with less funding. #0224 A-MISICIU (Younger/Short) Move to amend the main motion by striking out Section 5 of the proposed ordinance. Motion carried unanimously. TAPES #1925, #1926, & #1927 City Council Reg. Mtg. Minutes December 16, 2003 Page 4 of 6 #0288 M/SIC (Younger/Short) Main Motion to approve an ordinance on first reading, adopting the City of Bremerton's 2004 Annual Budget. Voted in favor of Motion: Younger, Maupin, Short, Nygren, and Arends Voted opposed to Motion: Shepherd, Gehring, McConnell, and Rollman Motion carried: 5-Yes; 4-No 9C - ORDINANCE [FIRST READING] UPDATING BMC CHAPTER 3.01 RATES AND FEES (#AB03-228): Michael Wilson, Finance Director, said that the proposed ordinance updates the rates and fees for certain City Departments (Administrative Services, Municipal Court, Community Development, Police, Fire, Parks & Recreation, Public Works & Utilities), and non-residential City services. The schedule is attached to the ordinance. Mike Eliason noticed that the fee increases for the Community Development Department seemed exceptionally high, and questioned if the City consulted any stakeholder groups to see how these increases would affect the market place. Mr. Wilson responded that fees were increased to recover the cost of performing the services, and to be competitive with other jurisdictions. Because several Council members also had the same concerns with the proposed Land Use fee increases, Chris Hullo, Director of Community Development, elaborated further to explain that a very costly service is being provided to developers, and that these fee increases would prevent the taxpayers from subsidizing the actual costs. #t 223 M/S/C (Maupin/Short) Move to approve an ordinance on first reading, amending BMC Chapter 3.01 RATES AND FEES. Voted in favor of Motion: Younger, Maupin, Short, Nygren, Shepherd, and Arends Voted opposed to Motion: Gehring, McConnell, and Rollman Motion carried: 6-Yes; 3-No 9D - ORDINANCE [FIRST READING] AMENDING BMC CHAPTER 3.80 UTILITY TAXES (#AB03-229): Michael Wilson, Finance Director, pointed out that the proposed ordinance increases the utility tax rate for Water, Wastewater, Stormwater, and Cable Utilities from 7% to 8.5% as a means of generating revenue so that no cuts need to be made to essential services. Mike Eliason asked if the rate increase would apply to utility users outside the City as well. Mr. Lubovich explained that yes, because the rate is charged for the utility, not the location, and elaborated further that the tax is charged to the general revenues of the utilities, not to the individual tax payer. Mr. McConnell proposed reducing the 11% tax for solid waste to 10% to honor a previous commitment made to the taxpayers, and will research another means of making up the difference. Discussion continued by the Council members prior to the vote... #2141 M/SIC (Short/Younger) Move to approve an ordinance on first reading, amending BMC Chapter 3.50 UTILITY TAXES. Voted in favor of Motion: Maupin, Short, Nygren, Younger, and Arends Voted opposed to Motion: Gehring, McConnell, Rollman, and Shepherd Motion carried: 5-Yes; 4-No TAPES #1925, #1926, & #1927 City Council Reg. Mtg. Minutes December 16, 2003 Page 5 of 6 9E - ORDINANCE [FIRST READING] AMENDING BMC CHAPTER 3.82 COMMERCIAL PARKING TAX {#AB03-230): Michael Wilson,, Finance Director, announced that the proposed ordinance increases the commercial parking tax rate from 8% to 10%. There were no comments from the public Council members expressed their support for this tax increase to support street improvements. #2525 M/S/C/U (McConnell/Rollman) Move to approve an ordinance on first reading, amending BMC Chapter 3.82 COMMERCIAL PARKING TAX. 9F - ORDINANCE {'FIRST READING] SETTING RATES AND FEES FOR WATER~ WASTEWATER~ AND STORMWATER UTILITIES AND AMENDING BMC CHAPTER 15.06 (#AB03-231): Michael Wilson, Finance Director, explained that an increase in assessments, rates, fees, and charges is required in order to meet the ongoing maintenance, operation, capital and debt service needs of the City's Water, Wastewater, Stormwater Utilities. This ordinance established new rates for all categories to incorporate a 2.1% CPi adjustment from the year 2003 rates to the year 2004 rates. There were no comments from the public. #2626 M/S/C (Rollman/McConnell) Move to approve an ordinance on first reading, establishing new rates for all categories of assessments, fees, rates, and charges for Water, Wastewater, and Stormwater Utilities for 2004. Voted in favor of Motion: Gehring, McConnell, Nygren, Rollman, Younger, Maupin, Short, and Arends Voted opposed to Motion: Shepherd Motion carried: 8-Yes; 1-No 9A - RESOLUTION NO. 2913~ RATIFYING COUNTYWIDE PLANNING POLICIES AS ADOPTED BY THE KITSAP COUNTY BOARD OF COMMISSIONERS (#AB03-234): Chris Hugo, Community Development Director, stated that the Kitsap Countywide Planning Policies (CPP's) were originally adopted and ratified by all Kitsap County local governments in 1992 pursuant to RCW 36.70A.210. In August 2001, the CPP's were subsequently amended according to procedures of the Kitsap County Regional Coordinating Council. The 2003 Amendments were developed over the past two years to address the remaining policy issues that were not considered in the 2001 amendments. This proposal is the result of considerable work of the KRCC Policy Board and it's supporting technical committees. Following public hearing, the Kitsap County Board of Commissioners made a preliminary approval of the KRCC proposed amendments on November 24, 2003, with minor revisions. Under KRCC procedures, ratification of the amendments is required of all participating jurisdictions. Representatives of the Bremerton City Council and the Mayor participated in the long and extensive deliberations that produced these proposed amendments. Vivian Henderson, KITSAP COUNTY ALLIANCE OF PROPERTY OWNERS, urged the Council to educate themselves on "Smart Growth" policies before they vote on this issue. Mike Eliason, Government Affairs Director for KITSAP COUNTY ASSOCIATION OF REALTORS, also suggested that the Council postpone their decision on this issue until other significant elements, such as the Fiscal Impacts, are approved. TAPES #1925, #1926, & #1927 City Council Reg. Mtg. Minutes December 16, 2003 Page 6 of 6 TAPE #1927 The Council members thoroughly discussed how the positive aspects of the Countywide Planning Policies would benefit Brernerton, however, offered their concerns with some sections of the policies, as well as the urgency in which it was presented to the Council. It was ultimately suggested that the Kitsap Regional Coordinating Council provide regular updates to the Council, and citizens were encouraged to view the entire document on the Kitsap County web site and provide their input. #0671 M/S/F (Short/Maupin) Move to approve Resolution No. 2913, ratifying the Kitsap Countywide Planning Policies with 2003 Amendments as adopted by the Kitsap County Board of Commissioners on December 15, 2003. Voted in favor of Motion: Nygren, Maupin, Short, Arends Voted opposed to Motion: McConnell, Rollman, Shepherd, Younger, Gehring Motion failed: 4-Yes; 5-No At the conclusion of regular business, the Council reconvened in the Council Conference Room for a 20-Minute Executive Session to "REVIEW LABOR NEGOTIATIONS" per R.C.W. Chapter 42.30.140(4)(b). The meeting was then adjourned at 10:10 P.M. Prepared and Submitted by: LORI SMITH Legislative Assistant Attest: PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CA/PJ/Is/cge DATE SUBMITTED: January lS, 2004 BILL #_ 0t~ - 007 AGENDA BILL CITY OF BREMERTON 5 ~ CITY COUNCIL SUBJECT: MinutesofMeeting- Committee Meeting Date: N/A December 23, 2003 COUNCIL MEETING Date: January ~27~ 2004 Department: City Com;cil Presenter: Daren Nygren, Council President Phone: (360) 473-5280 SUMMARY: Attached are the minutes for the Council Meeting held December 23,2003. ATTACHMENTS: Minutes for December :i]~ 2003 FISCAL IMPACTS (Include Budgeted Amount): 0 DEPARTMENTAPPROVALS: DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: OPERATIONS: CONSENT AGENDA [] COUNCIL PRESIDENT: RECOMMENDED MOTION: Move to pass the Consent Agenda as presented. COUNCIL ACTION: [] Approve [] Deny [] Table 8 [] Continue [] No Action TAPES #1928 & 1929 CITY COUNCIL MEETING MINUTES Tuesday, December 23, 2003 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4t~ Street, Bremerton, Washington, Tuesday, December 23, 2003, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Mike Shepherd, Ed Rollman, Daren Nygren, Cecil McConnell, and Brad Gehring. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Council Assistant Christine Grenier Ellingson. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnel!, followed by the invocation provided by Pastor G.T. Johnson formerly of Brownsville United Methodist Church. President Arends made the following announcements: 1. The Pre-Council session was held in the Council Conference Room from 5:00 to 5:30 PM to discuss updates to the agenda; and 2. The next Council meeting would be held Tuesday, December 30, 2003. CONSENT AGENDA A. Purchase of a new JOHN DEERE 410 BACKHOE LOADER (#AB03-235) #0026 M/S/C/U (McConnell/Rollman) 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. #0040 M/S/C/U (Younger/McConnell) On December 23, 2003, the Council approved payment for Check Numbers 286661 through 287062; and EFT-7971 through EFT-7976 in the total amount $2,344,015.73. COUNCIL MEMBER REPORTS Brad Gehrinq thanked those in military service who are serving abroad, especially during the holiday season. Cecil McConnell wished everyone a Merry Christmas. Daren Ny.qren wished everyone a wonderful holiday season and looked forward to the new year. Ed Rollman thanked Council Members for the opportunity to serve with them, and for choosing him as Chair of the Council Operations Committee. In addition, he hoped that the City could find a way to honor the Olmstead and Bremer families at some point in the future. Mike Shepherd commented on the District 5 meeting held last Thursday, and mentioned that street concerns need to be addressed. Eric Younger wished the citizens a happy holiday and was excited about being able to share a first Christmas with his 4 month old son. Will Maupin wished everyone a Merry Christmas and a happy holiday, and urged everyone to be safe. He also reminded the public that the Council meeting would still be televised tomorrow. Mike Short hoped that everyone would have a safe and warm holiday season; and announced that while the Council meeting was being held tonight, the actual broadcast would be tomorrow. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 2 of 7 Carol Arends announced that AUTO ZONE located on 6th Street near Naval Avenue was now open; wished everyone a joyous holiday season; and commented that we are all very lucky to be here and have so much to be thankful for. MAYOR'S REPORT - There was no Mayor's Report this evening. PUBLIC RECOGNITION Gordy Byrd wished the Council Members a Merry Christmas. 8A - AUTHORIZATION TO PURCHASE INSURANCE COVERAGE FROM AFFILIATED FM INSURANCE COMPANY (#AB03-236): Pe~l~v Lesser, Risk Manager, stated that City Council approval is required to purchase property insurance, and that a presentation on property insurance coverage was considered by the Council Committees on December 16, 2003. Staff recommends that the City Council approve the purchase of property insurance from AFFILIATED FM INSURANCE COMPANY at an annual premium of $161,467. There were no comments from the public. #0355 MISICIU (McConnell/Rollman) Move to authorize the City's Risk Manager to purchase property insurance coverage from AFFILIATED FM INSURANCE COMPANY. 8B - ALLOCATION OF ~650,000 IN HOME PROGRAM FUNDS TO KITSAP COMMUNITY RESOURCES (#AB03-237): Michelle Eichorn, Community Development, explained that as a member of the Kitsap County HOME Consortium, the City of Bremerton receives an annual allocation of HOME funds from the Department of Housing & Urban Development (HUD) to expand the supply of safe, sanitary, and affordable housing for Iow-income persons. The City Council is responsible to make the final determination concerning use of the funds. Kitsap Community Resources requests $650,000 of HOME funds for use as a portion of the overall acquisition and tenant relocation costs of OPAL COURT apartment complex in Bremerton. The apartment complex will continue to serve Iow-income tenants; however, the units would be used for a Transitional Housing Program. The Transitional Housing Program will provide affordable housing combined with case management services for Iow-income, homeless, and at-risk-of-homelessness families and individuals. There were no comments from the public. Mr. Ny.qren asked if any City funds or HOME funds were used to purchase this property while under previous ownership. Marilyn Waibel, Community Development, confirmed that Kitsap County had used HOME funds for prior purchase. Mr. Maupin asked where the money would go when the owners go out of business and the City acquires the property. Larry Eyers, Kitsap Community Resources (KCR), responded that the proceeds of the sale would go towards paying off the debt that the church incurred while trying to offer these services. Mr. Youn.qer asked why the church was getting out of the business. Mr. Eyers stated that the church did not have the financial resources to provide this type of program, and that KCR is a larger organization and more experienced in providing services to the population who would benefit from this program. Ms. Waibel added that there is a clause in the agreement which states the organization must pay back the money if it is not used within 15 years. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 3 of 7 Mr. YounRer asked if any application been denied under the home ownership program. Ms. Waibel answered that no application has been turned down. She also stated that the program is very successful with about 40 to 60 loans per year. Anyone interested in the Down Payment Assistance Program may call (360) 473-5375. Mr. Shepherd emphasized that this is a vital service to provide the community. #0680 MISIClU (Shepherd/McConnell) Move to approve allocation of $650,000 to KITSAP COMMUNITY RESOURCES from HOME program funds. 8C - INTERLOCAL AGREEMENT WITH KITSAP COUNTY FOR SALES TAX REVENUE SHARING (#AB03-238): Michael Wilson., Finance Director, established that this agreement provides for a financial arrangement with Kitsap County for sharing sales tax revenues as a result of the relocation of LOWE'S HOME IMPROVEMENT WAREHOUSE from within the City of Bremerton to an area just outside the City limits. The sales tax revenue sharing payments shall be for a period of three years on a phase-down basis (75%- first year; 50%- second year; and 25%- third year). There were no comments from the public. #0780 MISIClU (ShortJRollman) Move to approve the proposed Interlocal Agreement with Kitsap County for sharing in sales tax revenues generated from LOWE'S HOME IMPROVEMENT WAREHOUSE. 8D - AGREEMENT WITH KITSAP COUNTY FOR INCARCERATION OF CITY PRISONERS (#AB03- 239): Michael Wilson, Finance Director, explained that the City of Bremerton houses in-custody prisoners at the Kitsap County Jail at a current base rate of $62 per day. Due to the construction of a new jail facility and resulting improved efficiencies, the Kitsap County has proposed a new agreement which lowers the daily rate to $56 for 2004. The duration of this agreement shall continue beyond 2004 with provision that the County provides the City with any rate adjustments for the succeeding year by September 30 of each year, and the City shall then approve such rates within the Annual Budget. There were no comments from the public. Mr. McConnell would like to remove the word "shall" from the agreement; was concerned that the City may not be getting the best rates with this contract; and noted that he preferred contracts continue to come before Council. Mr. Wilson established that the City currently has contracts with several jurisdictions to assure getting competitive rates. He clarified that once contracts are approved, they only require further Council action if there are any amendments necessary for the contract renewal. Mr~ Lubovich added that if the City would like different rates, the contract can be terminated within 90 days. Mr. YounRer and Mr. McConnell questioned if an individual were arrested at 11:00 P.M. and released at 1:00 A.M., would fees be charged for two days. Mr. Wilson stated that most contracts allow for fees to be charged on a 24-hour cycle, and that this contract would therefore bill that time as two days. #1105 MISICIU (Maupin/Short) Move to approve the Kitsap County/City of Bremerton Agreement for Incarceration of City Prisoners subject to City Attorney approval of insurance provision. 9A - RESOLUTION NO. 2914~ SETTING A HEARING DATE OF JANUARY 14~ 2004 FOR VACATING THE EASTERLY PORTION OF THE ALLEY BOUNDED BY WARREN AVENUE~ PARK AVENUE~ 8TM STREET~ AND '10TM STREET {#AB03-240): Luke Korpi, Engineering, stated that the City initiated the vacation of the easterly portion of the alley bounded by Warren Avenue, Park Avenue, 8th Street, and 10th Street. The Bremerton Fire Department has proposed a new Fire Station on the property abutting the proposed vacated portion of the alley, and will relocate the alley to the west of its current location. This is a Class I right-of-way and compensation is not required in accordance with BMC 11.20.080. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 4 of 7 There were no comments from the public. #t175 M/S/C/U (McConnell/Rollman) Move to pass Resolution No. 2914, setting a hearing date of January 14, 2004, for vacating the easterly portion of the alley bounded by Warren Avenue, Park Avenue, 8th Street, and 10th Street. 9B - ORDINANCE NO, 4878 [SECOND READING] APPROVING AMENDMENT TO ORDINANCE NO. 4826~ RELATING TO THE FISCAL YEAR 2003 BUDGET (#AB03-226): This first reading of this ordinance was heard at the Council meeting on December 16, 2003. There were no comments from the public. Council Members expressed concerns over funding for the fountain project proposed for the Conference Center, and determined that in order to balance the budget, revenue sources must be properly matched with the corresponding Conference Center project expenditures. Therefore, the most appropriate action would be to remove the line item "OTHER REVENUES -- FOUNTAIN" from the proposed budget, and address that issue in a separate budget adjustment at a later time. #2515 M/S/C (Nygren/Short) Move to pass Ordinance No. 4878 on second reading, by deleting "OTHER REVENUES - FOUNTAIN" under Section 5 in Fund 301; reduce capital outlay under said fund by $450,000; and reduce "REVENUES AND EXPENDITURES" accordingly. Voted in favor of Motion: Nygren, Shepherd, Maupin, Short, Arends Voted opposed to Motion: McConnell, Rollman, Younger, Gehring Motion carried: 5-Yes; 4-No #2765 A-M/SIC (Shepherd/McConnell) Move to direct the Administration to spend no further money on the fountain project until authorized by the City Council. Voted in favor of Motion: Gehring, McConnell, Nygren, Rollman, Shepherd, Maupin, Arends Voted opposed to Motion: Younger, Short Motion carried: 7-Yes; 2-No 9C - ORDINANCE NO. 4879 )'SECOND READING] AMENDING BMC CHAPTER 3.82 COMMERCIAL PARKING TAX {#AB03-230): The first reading of this ordinance was heard at the Council meeting on December 16, 2003. There were no comments from the public. Mr. YounRer questioned if this ordinance were passed, could changes still be made during discussion of the ordinance for the 2004 budget. Mr. Lubovich emphasized that the separate rate ordinances must be passed prior to the final passage of the budget, because those items are part of the budget package. Mr. Wilson added that the Council may choose what order to hear ordinances, but once the ordinances are approved, those rates would be used to finalize the budget and therefore could not be changed. #3175 M/S/C/U (Rollman/Nygren) Move to pass Ordinance No. 4881 on second reading, amending BMC Chapter 3.82 COMMERCIAL PARKING TAX. TAPE #t 929 9D - ORDINANCE NO. 4880 rSECOND READING] UPDATED BMC CHAPTER 3.01 RATES AND FEES (#AB03-228): The first reading of this ordinance was heard at the Council meeting on December 16, 2003. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 5 of 7 Del Knauss endorsed a higher fine for those who block a fire hydrant than those who park on a sidewalk. Bill Hoke expressed concerns over increased fees to cover basic costs, and endorsed high funding for BKAT services. Mr. McConnell asked if fees were listed for changes in the zoning ordinance. Mr. HUllO answered that the fees are presented in the ordinance, and clarified that some of the fees are based on changes in the zoning code and the remaining fees are based on the Comprehensive Plan. Mr. Short was interested in seeing a comparison of Community Development fees among comparable municipalities. Mr. Hugo stated that 24 other municipalities were reviewed and assured Council that the City of Bremerton is in the median range for charging these fees. Mr. Short pointed out that no one department should feel the brunt of the increased costs like benefits in the form of increased fees. Mr. Shepherd suggested that fees for pet license fees be raised by $1 to cover their cost to the GENERAL FUND. Me. Johnston established that the increase is already included in the proposal, and covers the $2,000 cost increase for the Animal Control Contract. Mr. Nvc~ren was concerned that responsible pet owners who already license their pets should not be penalized, and further urged more people to license their animals. Mr. Gehrinfl was opposed to some of the increases in Community Development fees, and suggested a one-time exemption for short plat applicants to lessen the burden. Mr. Rollman was pleased that projected revenue for Ivy Green Cemetery would increase based on fee increases and applications for spots at the cemetery. Mr. Short explained that senior citizens have stated through the Animal Control Committee process that they do not necessarily need to receive reduced pet license rates. Mr, McConnell had thought the main goal was to get people to license their pets, and therefore should not be punished if the pets are not spayed or neutered. Council cafled a recess at 7:28 P.M. and business resumed at 7:38 P.M. The vote on the Main Motion was taken immediately when the Council reconvened. #0525 M/SIC (ShortJMaupin) Move to pass Ordinance No. 4880 on second reading. Voted in favor of Motion: Shepherd, Younger, Maupin, Short, McConnell, Nygren, Rollman, Arends Voted opposed to Motion: Gehring Motion carried: 8-Yes; l-No #0530 A-M/S/F (Gehring/McConnell) Move to provide a one-time exemption to leave the fee set at the current level on "SUBDIVISIONS TABLE C" for individuals who apply for a short plat or long plat. Voted in favor of Motion: Gehring, Shepherd Voted opposed to Motion: Rollman, Younger, Maupin, Short, McConnell, Nygren, Arends Motion Failed: 2-Yes; 7-No 9E- ORDINANCE NO. 4881 [SECOND READING] SETTING RATES AND FEES FOR WATER~ WASTEWATER~ AND STORMWATER UTILITIES AND AMENDING BMC CHAPTER 15.06 (#AB03- 231): The first reading of this ordinance was heard at the Council meeting on December 16, 2003. Mr. Knauss asked the Council to consider putting a limitation on fee increases since one increase is being proposed now, and another increase may be proposed following review of the rate survey. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 6 of 7 Mr. Shepherd suggested that Council not approve a rate increases until the rate study is completed, and utility costs and actual rates could be determined. Mr. Lubovich clarified that the BMC allows for automatic CPI adjustments, and the only way to affect the rate increases would be to make a contingent motion. Mr, McConnell asked if the rates would be based on the survey results or the ordinance. Mr. Wilson answered that the rates would be based on the current rates in effect at the time of the completion of the survey. Mr. Short agreed that the ordinance should be amended to include the CPI adjustment as part of the rate increase, assuming a rate increase based on the findings of the rate survey. Mr. Wilson responded that the survey would take that into consideration. Mr, Maupin commented that there was a cost to operating the water system and the CPi adjustment was necessary to cover those costs. The rate survey will propose what the rates should be, and the Council will then decide how to deal with the rates after the survey is completed. #1265 M/SICIU (Younger/Maupin) Move to pass Ordinance No. 4881 on second reading. 9F- ORDINANCE NO. 4882 [SECOND READING] AMENDING BMC CHAPTER 3.50 UTILITY TAXES {#AB03-229): The first reading of this ordinance was heard at the Council meeting on December 16, 2003. Mr. Knauss expressed concerns over the trend of tax increases. He asked how much revenue these tax increases would raise; and what are the beginning and ending balances of the budget. Mr. Wilson answered the tax increases would raise $330,000; and that the beginning fund balance was about $600,000, and the ending fund balance was about $1.2 million. This increase was due to a transfer of Discretionary Reserve money to the General Fund. The ending fund balance is used for cash flow purposes and is not a surplus. The extra funds are needed to cover expenditures during the first quarter of the year when property taxes have not been collected yet. .Ms. Arends commented that in previous years, the City was borrowing money to have cash flow prior to collection of property taxes. Mr. Rollman added that some time ago, the Council had promised the citizens a 1% reduction in the garbage tax per year, and was concerned that no reductions have yet been made. Mr. Shepherd commented that he would like to eliminate the tax in its entirety. #1600 M/SIC (Short/McConnell) Move to pass Ordinance No. 4882 on second reading, as amended. Voted in favor of Motion: Gehring, McConnell, Nygren, Rollman, Younger, Maupin, Short, Arends Voted opposed to Motion: Shepherd Motion carried: 8-Yes; 1-No #16~10 A-M/SIC (McConnell/Gehring) Move to amend Section 3.50.050 to reduce the solid waste tax from 11% to 10%. Voted in favor of Motion: Gehring, McConnell, Rollman, Shepherd, Younger Voted opposed to Motion: Maupin, Short, Nygren, Arends Motion carried: 5-Yes; 4-No #2275 A-M/SIC (McConnell/Short) Move to freeze utility taxes at current rates for a period of two years through fiscal year 2005, except for solid waste taxes, unless unfrozen by a City Council super majority as seated. TAPES #1928 & 1929 City Council Reg. Mtg. Minutes December 23, 2003 Page 7 of 7 Voted in favor of Motion: Shod, Gehring, McConnell, Rollman, Shepherd, Younger, Maupin, Arends Voted opposed to Motion: Nygren Motion carried: 8-Yes; 1-No 9G - ORDINANCE NO, 4883 [SECOND READING] ADOPTING THE 2004 ANNUAL BUDGET; REPEALING BMC CHAPTERS 3,10 AND 3.38~ AND AMENDING BMC CHAPTER 3,36 {#AB03-227): The first reading of this ordinance was heard at the Council meeting on December 16, 2003. Michael Wilson, Finance Director, announced that the 2004 Budget was comprised of $142,992,232. There were no comments from the public. #2340 M/S/C (Younger/Shod) Move to pass Ordinance No. 4883 on second reading, as amended. Voted in favor of Motion: McConnell, Nygren, Rollman, Shepherd, Younger, Short, Gehring, Arends Voted opposed to Motion: Maupin Motion carried: 8-Yes; 1-No #29'15 A-M/S/C (Rollman/Younger) Move to amend Ordinance No. 4833 to eliminate the Municipal Sen/ices Coordinator position. Voted in favor of Motion: McConnell, Rollman, Shepherd, Younger, Gehring Voted opposed to the Motion: Nygren, Maupin, Short, Arends Motion carried: 5-Yes; 4-No Council member Mike Shepherd proposed an amendment to remove an additional $115, 000 from the Economic Development Department. The motion died due to the lack of a second. Council member Mike Shepherd proposed an amendment to increase the Animal Control License Revenue by $20,000. The motion died due to the lack ora second. With no further business, the meeting was adjourned at 8:50 P.M. Prepared and Submitted by: CHRISTINE GRENIER ELLINGSON Council Assistant Attest: PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CNP J/Is/cge DATE SUBMITTED: January 15, 2004 BILL #_ 014 - 003 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Meeting - Committee Meeting Date: N/A December ~0t 2003 COUNCIL MEETING Date: January 2~, 2004 Department: City Council Presenter: Daren Nygren, Council President Phone: (360) 473-5280 SUMMARY: Attached are the minutes for the Council Meeting held December $~ 2003. ATTACHMENTS: Minutes for December 3.~ 2003 FISCAL IMPACTS (Include Budgeted Amount): 0 DEPARTMENTAPPROVALS: DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: OPERATIONS: CONSENT AGENDA [] COUNCIL PRESIDENT: RECOMMENDED MOTION: Move to pass the Consent Agenda as presented. COUNCIL ACTION: [] Approve [] Deny [] Table [{~ [] Continue [] No Action TAPES #1930 & #1931 CITY COUNCIL MEETING MINUTES Tuesday - December 30, 2003 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, Tuesday, December 30, 2003, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Mike Shepherd, Ed Rollman, Daren Nygren, Cecil McConnell, and Brad Gehring. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnel!, followed by the invocation provided by Pastor Eric Roberts of Neighborhood Christian Center. President Arends made the following announcements: 1. The Pre-Council session was held in the Council Conference Room from 5:00 to 5:30 PM to discuss updates to the agenda; 2. A regular Council meeting would be held next Wednesday in place of a Monthly Study Session, and Council Officer Elections would be held during that meeting in the Council Chambers at 5:30 P.M. 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. #0025 M/S/C/U (McConnell/Rollman) On December 30, 2003, the Council approved payment for Check Numbers 287063 through 287186; and EFT-7980 through EFT-7983 in the total amount $443,604.33. COUNCIL MEMBER REPORTS President Arends invited Council members Ed Rollman and Eric Youn~ler to the podium to present them plaques in appreciation for their service to the City as Council representatives for their respective Districts 4 and 6. A plaque was also presented to Wayne OIsen for his service to the City as Council representative for District 1. She also noted that she looks forward to working with newly elected Council members Wendy Priest and Dianne Robinson in the coming year. Vice President Short presented President Arends with 2 dozen red roses in appreciation for her service as Council President for the last few years. The remaining Council members each expressed their thanks to Carol Arends for her service as Council President; and thanked Wayne Olsen, Ed Rollman, and Eric Younger for their service to the City Council. Eric Younger and Ed Rollman also thanked the Council members for the support they were given during their term on the Council, and thanked those citizens who supported and believed in them. They each felt proud of the many accomplishments made during their terms. Brad Gehrinf:l noted that he participated in the Swearing-In ceremony this afternoon, but has actually been seated for five weeks now. He acknowledged the passing of Fred Ross, a long-time PSNS employee and President of the Silverdale Harley Hog Chapter, and announced that a memorial would be held on Friday, January 18th at the Kitsap Golf & Country Club; and lastly he hoped that everyone had a good holiday last week. MAYOR'S REPORT - There was no Mayor's Report tonight. TAPES #1930 & #1931 City Council Reg. Mtg. Minutes December 30, 2003 Page 2 of 4 PUBLIC RECOGNITION Pastor Larry Robertson was present tonight to thank Ed Rollman and Eric Younger for their service to the City; Carol Arends for her service as Council President; and the newly elected Council members for committing their time to serve the community. Lastly, he thanked the Council for approving the allocation of HOME program funds to Kitsap Community Resources. Kristina Younger used a recent encounter with a teenager who was found on their beach late at night as a reminder to parents and teenagers that it is not a good idea, and actually quite dangerous, to be on the beach at this time of year. Helen Miller thanked Eric Younger and Ed Rollman for the contributions they made during their terms in office to make the City a better place. 8A - CONTRACT CHANGE ORDER TO T.BAILEY~ INC. FOR INTERIOR COATING OF RESERVOIR FLOOR ON RESERVOIR NO. 19 {#AB03-241): Dan Miller, Project Manager, explained that the City has contracted for standpipe repair and seismic upgrades at Reservoir. No. 19. This Change Order is necessary as a result of failed interior coal tar lining discovered during the standpipe repair and seismic upgrade contract. At this time, it is recommended that the removal and disposal of the failed interior coal tar lining on the floor and shell of the reservoir be performed and new Tnemec interior floor and shell coating system be applied prior to refilling the reservoir. The additional cost to perform this work is $76,000.00 plus sales tax. Reservoir No. 19 serves the City's 240 Water Pressure Zone, which includes Harrison Memorial Hospital and the adjacent medical support facility. Frank Mahaffay, President of Kitsap County Association of Realtors, asked for clarification on the repairs that need to be made. Mr. Miller responded that the coal tar lining is undergoing a bubbling effect, and the repairs are needed to replace the damaged lining. Mr. Short asked if the company is comfortable with completing all of the work within the contracted five day window and if there were a delay would that have an impact on the water supply. Mr. Miller responded that the company was prepared to complete the repairs in the time allotted and that there would are no expected delays. Mr. Shepherd asked for a description of the coating process. Mr. Miller explained that that the project will include a coal tar lining to eliminate the bubbling effect, a TNEMEC industrial coating to seal the coal tar lining, and a final coating to protect the underlying layers. These upgrades should last up to 25 years. Mr. Gehring asked if the TNEMEC lining was under warranty. Mr. Miller answered yes. #1605 M/S/C/U (Shepherd/Short) Move to approve this change order to T. BAILEY, INC. in the amount of $82,600.00 including sales tax, and authorize the Mayor to finalize and execute the change order in substantially the same form as attached. 8B - CONTRACT MODIFICATION AGREEMENT NO. I WITH THE KITSAP HUMANE SOCIETY (#AB03-242): Paula Johnston, Deputy City Clerk, pointed out that the current animal control contract with the KITSAP HUMANE SOCIETY provides for annual review of scope of services and compensation. It is being proposed to increase the annual compensation by $2,000 to a total of $183,634 for 2004. The increase is due to increased costs of processing animal licensing as well as overall CPI impacts of providing a full scope of services to the City of Bremedon. Also, due to budget constraints, the SOCIETY has had to cut back its level of service on Sundays to emergency response only. There were no comments from the public. Mr. Nygren urged citizens to please license their animals, because many animals end up being euthanized due to the inability to locate the owners of lost animals. TAPES #1930 & #1931 City Council Reg. Mtg. Minutes December 30, 2003 Page 3 of 4 Mr. Shepherd expressed concern over the need for animal licensing in the City; did not agree with increasing costs for the contract while decreasing the amount of services provided to the community; and commended Paula Johnston for keeping the cost increase on the contract to a minimum. #t895 M/SIC (Nygren/Short) Move to approve the contract modification agreement No. 1 with KITSAP HUMANE SOCIETY and authorize the Mayor to execute the agreement in substantially the same form as presented. Voted in favor of Motion: Nygren, Rollman, Maupin, Short, Gehring, McConnell, Arends Voted opposed to Motion: Shepherd, Younger Motion carried: 7-Yes; 2-No 9A - PUBLIC HEARING AND MOTION TO RATIFY ORDINANCE NO. 4883 ADOPTING THE 2004 ANNUAL BUDGET (#AB03-243): Roger Lubovich, City Attorney, explained that on December 23, 2003, the City Council passed Ordinance No. 4883 adopting the 2004 Annual Budget, but that public comment was not taken. Although state law clearly states that public comment does not need to be taken, it is the wish of the Council that this hearing be held to allow public comment of the budget ordinance to be procedurally correct. No new motions shall be made except to address specific concerns or issues raised by citizens, and previous motions can not be reversed. There were no comments from the public. #2005 M/SIC (McConnell/Rollman) Move to ratify Ordinance No. 4883 adopting the 2004 annual budget. Voted in favor of Motion: Rollman, Younger, Maupin, Short, Gehring, McConnell, Nygren, Arends Voted opposed to Motion: Shepherd Motion carried: 8-Yes; 1-No 9B - PUBLIC HEARING AND RESOLUTION NO. 2915 REGARDING DECORATIVE STREETLIGHT STANDARDS IN THE DOWNTOWN DISTRICT (#AB03-244): Gene Sample,/, Director of Public Works & Utility, stated that his Department desires to specify a particular decorative streetlight for the downtown phase of the SR304 Transportation Improvement Project. In addition, the Department desires that this streetlight be adopted as the standard for development and redevelopment projects in the Downtown Waterfront (DW) and Downtown Core (DC) zoning districts. A single standard will ensure that decorative streetlights in these districts are consistent in design, function, and aesthetics..Chris Hugo was also available to answer questions and provide input. There were no comments from the public. After questions were asked and discussion held by the Council, several members expressed their concem that not enough input has been received from the public, even though President Arends offered her awareness that a number of citizen committees were involved in past discussions on this issue. Concern was also expressed that the Planning Department was not involved enough in this process, and that the Economic Development Director was not available to provide his input. It was determined that more information was needed, and therefore, no vote was taken. Staff was instructed to bring this issue back to a Council Committee meeting in a few weeks for further study and review. 9C - PUBLIC HEARING AND RESOLUTION NO. 2913 RATIFYING COUNTWlDE PLANNING POLICIES AS ADOPTED BY THE KITSAP COUNTY BOARD OF COMMISSIONERS {#AB03-245): Chris Hugo, Community Development Director, mentioned that the Kitsap Countywide Planning Policies (CPP's) were originally adopted and ratified by all Kitsap County local governments in 1992 pursuant to RCW 36.70A.210. In August 2001, the CPP's were subsequently amended according to procedures of the Kitsap Regional Coordinating Council. The 2003 amendments were developed over the past two TAPES #1930 & #1931 City Council Reg. Mtg. Minutes December 30, 2003 Page 4 of 4 years to address the remaining policy issues that were not considered in the 2001 amendments. This proposal is the result of considerable work of the KRCC Policy Board and the supporting technical committees. Following public hearing, the Kitsap County Board of Commissioners made a preliminary approval of the KRCC proposed amendments on November 24, 2003, with minor revisions. Under KRCC procedures, ratification of the amendments is required of all participating jurisdictions. Representatives of the Bremerton City Council and the Mayor participated in the long and extensive deliberations that produced these proposed amendments. There were no comments from the public. #34t0 M/S/C/U (McConnell/Shepherd) Move to reconsider Resolution No. 2913, to ratify the Kitsap Countywide Planning Policies with 2003 amendments as adopted by the Kitsap County Board of Commissioners on December 15, 2003. TAPE #t93t Frank Mahaffa¥, expressed his concern with the impact of these County-wide Planning Policies, and urged the Council not to support them. A thorough discussion was held by the Council and concerns were expressed about certain portions of the Countywide Planning Policies that have a/ready been approved. However, it was determined that the Council could support the specific amendments before the Council tonight. #0605 M/S/C (Shepherd/Rollman) Move to pass Resolution No. 2913, ratifying the Kitsap Countywide Planning Policies with 2003 amendments as adopted by the Kitsap County Board of Commissioners on December 15, 2003. Voted in favor of Motion: Maupin, Short, Gehring, McConnell, Nygren, Rollman, Shepherd, Arends Voted opposed to Motion: Younger Motion carried: 8-Yes; 1-No At the conclusion of regular business, the meeting of the City Council was adjourned at 7:29 P.M. Prepared and Submitted by: LORI SMITH Legislative Assistant Attest: PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CNP J/Is/cge DATE SUBMITTED: January 22, 2004 BILL AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Memorandum of Agreement Committee Meeting Date: January 27, 2004 between the City of Bremerton and Puget COUNCIL MEETING Date: January 27, 2004 Sound Naval Shipyard and Intermediate Department: Executive Maintenance Facility and the Washington Presenter: Mayor Bozeman State Historic Preservation Office and the Phone: 5266 National Park Service SUMMARY: The proposed memorandum agreement is in regard to the transfer of ownership of Building 50. Entering into this agreement is necessary to satisfy the requirements of Section 106 of the National Historic Preservation Act of 1966 (as amended) and 36 CFR Part 800 and is necessary to mitigate the adverse affects on the Puget Sound Naval Shipyard National Historic Landmark District and Building 50 that are anticipated to occur with the moving of Building 50. The agreement requires as a condition of the transfer of ownership of the building to the City that the City will maintain the building in a manner that preserves the building in accordance with the recommended approaches in the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. ATTACHMENTS: Proposed Memorandum of Agreement FISCAL IMPACTS (Include Budgeted Amount): APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: F1NANCE DIRECTOR: MAYOR: FISCAL/BUDGET: I/~2'7/O4 OPERATIONS: I./~L? /0K CONSENT AGENDA [] COUNCIL PRESIDENT: RECOMMENDED MOTION: I ,,,ove to authoriz finalize and execute the proposed Memorandum of Agreement in substantially the same form as attached hereto. COUNCIL ACTION: [] Approve [] Deny [] Table [] Continue [] No Action MEMORANDUM OF AGREEMENT (MOA) Enclosure 1) MEMORA~-DUM OF AGREE~4ENT BETWEEN PUGET SOUND NAVAL SHIPYARD AND INTERMEDIATE MAINTENANCE FACILITY, THE CITY OF BREMERTON, THE WASHINGTON STATE HISTORIC PRESERVATION OFFICE, AND THE NATIONAL PARK SERVICE REGARDING THE TRANSFER OF OWNERSHIP OF BUILDING 50 AND SUBMITTED TO THE ADVISORY COUNCIL ON HISTORIC PRESERVATION PURSUANT TO 36 CFR PART 800.10 WHEREAS, Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS & IMF), an agency of the Department of the Navy, has determined to move and transfer ownership of Building 50 to the City of Bremerton. WHEREAS, Building 50 is a contributing property to the Puget Sound Naval Shipyard National Historic Landmark District (NHLD) National Register Number 88003053; WHEREAS, the movement and transfer of ownership of Building 50 will have an effect upon the NHLD; WHEREAS, PSNS & IMF has consulted with the Washington State Historic Preservation Officer (SHPO) PURSUANT to 36 CFR Part 800 regulations implementing Section 106 of the National Historic Preservation Act (16 USC Part 470f); WHEREAS, PSNS & IMF has notified the National Park Service (NPS), Department of Interior and invited the NPS to participate in consultation PURSUANT to 36 CFR Part 800.10(c); NOW, THEREFORE, PSNS & IMF, the Washington SHPO, and the NPS Columbia Cascade Office agree ~hat the undertaking shall be implemented in accordance with the following stipulations in order to take into account the effect of the undertaking upon Building 50 and the NHLD. STIPULATIONS The Puget Sound Naval Shipyard and Intermediate Maintenance Facility will ensure the following measures are carried out: 1. Documentation of Current Condition of Building The PSNS & IMF will document the current condition and significant exterior and interior features of the building. This documentation will include 4" x 6", black and white, 35 mm photographs of exterior views, exterior details, interior views and interior details. A narrative that will describe the alterations to the original building will supplement the photographs. Copies of the documentation will be distributed to the State of Washington, Office of Archaeology and Historic Preservation (OAHP) and appropriate local archives. Unless otherwise agreed to by the NPS, PSNS & IMF shall ensure that all documentation will be completed before the building is moved and transferred. 2. Preservation Covenant The PSNS & IMF will ensure that the following preservation covenant will be included in the transfer document and recorded in the real estate records of Kitsap County, State of Washington, for the transfer of Building 50 to ensure its preservation. PSNS & IMF shall notify SHPO and NPS, in writing, no later than thirty (30) days following recording of the transfer instrument. (a) In consideration of the conveyance of certain real property, hereinafter referred to as the former Building 50, the City of Bremerton hereby covenants on behalf of itself, it's heirs, successors, and assigns at all times to the Washington SHPO and the NPS to preserve and maintain the former Building 50 in a manner that preserves the building in accordance with the recommended approaches in the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (National Park Service, 1992) in order to preserve and enhance those qualities that make Building 50 a national landmark property. (b) No construction, alteration, remodeling or any other work shall be undertaken or permitted to be undertaken at the former Building 50, other than minor repairs and routine maintenance, without the express prior written permission of the NPS and the Washington SHPO, signed by those individuals or a fully authorized representative thereof. (c) The Washington SHPO and the NPS, or a fully authorized representative thereof shall be permitted at all reasonable times to inspect the former Building 50 in order to ascertain if the above conditions are being observed. Prior to said inspection, proper written notification of intent to inspect will be issued to the Grantee. (d) This covenant is binding on the City of Bremerton, it's heirs, successors and assigns in perpetuity. Restriction, stipulations, and covenants contained herein shall be incorporated into any deed or other legal instrument by which she/he/they/it divests her/him/itself/themselves of either the fee simple title or any other lesser estate in the former Building 50 or any part thereof. (e) The failure of the Washington SHPO to exercise any right or remedy granted under this instrument shall not have the effect of waiving or limiting the exercise of any other right or remedy or the use of such right or remedy at any other time. (f) The Washington SHPO reserves the right to assign its responsibilities under this covenant to a third party. The third party may be, but is not limited to, another government entity or a non-profit organization. This covenant shall be binding servitude upon the real property that includes the former Building 50 and shall be deemed to run with the land. Execution of this covenant shall constitute conclusive evidence that the City of Bremerton agrees to be bound by the foregoing conditions and restriction and to perform to obligations herein set forth. 3. Dispute Resolution Should the Washington SHPO or the NPS object to any plans provided for its review pursuant to this agreement, the City of Bremerton shall consult with the Washington SHPO and the NPS to resolve the objection. The responsibility of the City of Bremerton to carry out all actions under this agreement that are not subjects of this dispute remain unchanged. 4. Amendments and Noncompliance If any signatory to this MOA determines that its terms will not or cannot be carried out or that an amendment to its terms must be made, that party shall immediately consult with the other party to develop an amendment to this MOA pursuant to 36 CFR 800.6. This amendment will be effective on the data a copy signed by all of the original signatories is filed with the Council. If the signatories cannot agree to appropriate terms to amend the MOA, any signatory may terminate the agreement in accordance with Stipulation 5 below. 5. Tezmination If an MOA is not amended following the consultation set out in Stipulation 4, it may be terminated by any signatory. Within 30 days following termination, PSNS & IMF shall notify the Washington SHPO if it will initiate consultation to execute an MOA under 36 CFR 800.6 or request the comments of the Council under 36 CFR 800.7 and proceed accordingly. 6. Expiration of Agreement This agreement shall expire if its terms are not carried out within three years from the date of execution, unless the signatories agree in writing to an extension for fulfilling its terms. Execution of this Memorandum of Agreement by Puget Sound Naval Shipyard and Intermediate Maintenance Facility, the City of Bremerton, the Washington State Historic Preservation Officer, and the National Park Service, and implementation of its terms, evidences that PSNS & IMF has addressed the transfer out of federal ownership, the former Building 50 and its effects upon a national landmark property and the PSNS & IMF has taken into account the effects of the undertaking on historic properties. PUGET SOUND NAVAL SHIPYARD and INTERMEDIATE MAINTENANCE By--FACILITY' DEPA[~~E: NAVY Date: ~ ~ C. O~ [li, Commander WASHINGTON S~HISTORIC PRESERVATION OFFICE Aliy~6~ ~rooks CITY OF BREMERTON, WASHINGTON By: Date: Cary Bozeman, Mayor NATIONAL PARK SERVICE, DEPARMENT OF THE INTERIOR By: Date: STATE OF WASHINGTON OFFICE OF COMMUNITY DEVELOPMENT OFFICE OF ARCHAEOLOGY & HISTORIC PRESERVATION 1063 S. Capitol Way, Suite 106 · Olympia, Washington 98501 (Mailing Address) PO Box 48343 · Olympia, Washington 98504-8343 Phone (360) 586-3065 FAX (360) 586°3067 Web Site: www. oahp. wa.gov December 30, 2003 Capt. J. C. Ol'zalli Shipyard Commander Puget Sound Naval Shipyard 1400 Farragut Avenue Bremerton, Washington 98314-5001 In future correspondence please refer to: Log: 123003-05-USN Property: PSNS, Bldg 50 Re: Move and Transfer Ownership to City of Bremerton Memorandum of Agreement (MOA) Dear Capt. Orzalli: Thank you for contacting the Washington State Office of Archaeology and Historic Preservation (OAHP). The above referenced project has been reviewed on behalf of the State Historic Preservation Officer (SHPO) under provisions of Section 106 of the National Historic Preservation Act of 1966 (as amended) and 36 CFR Part 800. My review is based upon documentation contai~ed in your ¢onununication. Since we have no record of formal comment on the proposed move and transfer of ownership of the above referenced property to the City of Bre~aerton, the f~rst purpose of this letter is to comment on the effect of the proposed action. In my opinion, the proposed move will have an "ADVERSE T~.~'FECT" on the Puget Sound Naval Shipyard National Historic Landmark District and Building 50, a contributing structure within that district. OAHP has reviewed relocation specifications for the proposed move of Building 50, and finds them generally acceptable, but consultation between the Shipyard and OAHP should continue until both phases of the move have been accomplished and the building is in it's permanent location. The City of Bremerton should also be involved in this consultation, particularly if transfer of ownership occurs before the building reaches its permanent location. The enclosed MOA regarding transfer of the property has also been reviewed and signed by the SHPO. Please provide a copy of the agreement to OAHP for our files once it has been fully executed. Thank you for the opportun!ty to review and comment. Should you have any questions, please feel free to contact me. Sincerely, Stephen/~. Mathison Historical Architect (360) 586-3079 Ste henlvI~cted.wa, ov Enclosure .~, ~ DATE SUBMITTED: January 13, 2004 BILL # 0q - ~ I 0 AGENDA BILL ~D CITY OF BREMERTON CITY COUNCIL SUBJECT: Purchase of Liability ~d Committee Meeting Date: J~u~ 20, 2004 Surety Insur~ce CO~CIL MEET~G Date: January ~ 2004 Dep~ment: City Attorney's Office Presenter: Peggy Lesser ~ Phone: 5302 SUMMARY: Breme~on's liability and surety coverages expire on J~ua~ 31, 2004 ~d City Council approval is required for the purchase of replacement coverage. Bremeffon's account has been m~keted to interested insurers and it i~ec~ded that replacement liability coverage be our¢~a~ Crom ~ ~?~ ~t an a=u~ ¢o~t of $~¢&.~O an~ replacement sure~ coverage be purchased ~om~~ Msur~ce Comply at ~ a~ual costof$ q~ ~ ,,,~ ~-' ........... ,~. ~ .. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): Adequate funds were budgeted in the 2004 risk management fund to cover these expenditures. APPROVALS: DEPARTMENT DIRECTOR: .._....--- .... --.,. CITY ATTORNEY: , ~; FINANCE DIRECTOR: 'f.I ~.~.~, ~/¢ MAYOR: {___. FISCAL/BUDGET: COUNCILPP SID ST: (fipVW -' RECOMMENDED MOTION: I ~9,ve that the Bremerton City Council authorize the Risk Manager to purchase lia_bility..insurance from'j~ ~ L ......... ~._~ and surety coverage from(~a~ ~ Insurance Company. 1 COUNCIL ACTION: [] Approve [] Deny [] Table [] Continue [] No Action . SUBMITTED: January 13, 2004 AGENDA BILL BILL # ~ CITY OF BREMERTON CITY COUNCIL ~~ SUBJECT: Interlocal Agreement between Committee Meeting Date: January 20, 2004 the City and Tracyton Water District for COUNCIL MEETING Date: January ~,~__~_004~ Transfer of the District Water System to the City. Department: Public Works & ~ Presenter: ._Gene Sampley ~ Phone: 531 ~ SUMMARY: In February 2000 and April 2001, the City of Bremerton and the Tracyton Water District entered into interlocal agreements for certain improvements and for the eventual transfer of assets and operations of the District to the City. The City and District have negotiated the final provisions for the assumption of rights, powers, duties, obligations, and transfer of assets of the Tracyton Water District to the City of Bremerton. It is recommended that the attached Interlocal Agreement be approved. ATTACHMENTS: Interlocal Agreement Between the City of Bremerton and Tracyton Water District for the Assumption of Rights, Powers, Duties, Obligations, and Transfer of assets of the Water District FISCAL IMPACTS: None. The effects of this agreement have been incorporated into the 2004 budget. APPROVALS: ~~ DEPARTMENT DIRECTOR: ii .Z£~:. CITY ATTORNEY: MAYOR: FISCAL/BUDGET: OPERATIONS: ENT AGENDA ~]l RECOMMENDED MOTION: City Council app/roves Inte~ocal Agreement Between the City of Bremerton and Tracyton Water District for the Assumption of Rights, Powers, Duties, Obligations, and Transfer of assets of the Water District and authorizes the Mayor to finalize and execute the same. COUNCIL ACTION: [] Approve [] Deny [] Table ~0 [] Continue [] No Action SUMMARY OF EVENTS TRACYTON WATER DISTRICT - WATER SYSTEM UPGRADES 1998 · City assists Tracyton Water District with CIP for its water system. · C~ identifies Current Needs and Future Needs 2000 · City and District enter into an interlocal agreement for water system improvements in anticipation of district dissolution. · ILA assigns project management to City and City assumption of project debt upon dissolution. · City and District enter into a second ILA for water system improvements detailing design, construction, and financing considerations including $500,000 loan for project cash flow. · District plans to incorporate and sell 39 acres for $1M to offset capital costs. · ILA#2 assigns CIP Current Needs to District and Future Needs to City, subject to dissolution. · City assists District in obtaining PWTF loan for design and City is project manager for design and construction · City assists District in securing DWSRF for design of Future Needs and construction of Current and Future Needs. April 30, 2001 · City and District enter into a MOU regarding use and repayment obligations of PWTF and DWSRF loan proceeds. Oct. 1, 2001 · $43,000 interest only payment due on PWTF loan. · District meets with PWTBoard and is told that default precludes additional distribution of proceeds. · District asks City for short-term financial assistance to make loan payment. October 14, 2002 · With completion of the Phase 1 improvements (District Project), it was determined that the City will have 44% of the loan proceeds from the DWSRF loan available for the Phase 2 improvements (City Project). The City agrees to pay its portion of the DWSRF 2% Loan Fee including interest to date, or $25,955.60 plus $778.67 interest for a total mount of $26,734.27. July 23, 2003 · City and District notify PWTBoard of District's intern to dissolve with the City intent to assume all assets, liabilities, and obligations mchd/ng all Public Works Trust Fund and Drinking Water State Revolving Fund Loans of the Disthct upon its dissolution. Interlocal Agreement Between the City of Bremerton and Tracyton Water District for Assumption of Rights, Powers, Duties, Obligations and Transfer of Assets of Water District TABLE OF CONTENTS Recitals ................................................................................................................................ 1 Prior agreements .................................................................................................................. 3 Assumption of Operations ................................................................................................... 3 Assumption of Loans .......................................................................................................... 3 Transfer of Assets ................................................................................................................ 3 Phase 2 Improvements ......................................................................................................... 4 Loan Payments ................................................................................................................... 4 Dissolution of District ........................................................................................................ 4 District Service Area ........................................................................................................... 5 Customer Rates. Front Footage Fees - Discount ............................................................................................ 5 All Other Fees and Charges ................................................................................................. 5 Rates, Fees and Charges - Effect of Annexation ................................................................ 5 Indemnification ................................................................................................................... 5 Full Satisfaction ................................................................................................................... 6 Entire Agreement ................................................................................................................ 6 Amendments ........................................................................................................................ 6 Notices ................................................................................................................................. 6 Venue ................................................................................................................................... 6 Order of Precedence ............................................................................................................ 6 Successors and Assigns ....................................................................................................... 7 Severability .......................................................................................................................... 7 Condition of approval .......................................................................................................... 7 Memorandum of Agreement - Recorded ............................................................................ 7 Water System Transfer ........................................................................................................ 7 Agreement to Cooperate ...................................................................................................... 7 Duplicate Originals .............................................................................................................. 7 i EXHIBITS EXHIBIT A .......................................................... June 29, 1966 Water Service Agreement EXHIBIT B ............................................................ February 29, 2000 Interlocal Agreement EXHIBIT C ................................................................. April 30, 2001 Interlocal Agreement EXHIBIT D ............................................... April 30, 2001 Memorandum of Understanding EXHIBIT E ...................................................................................... PWTF Loan Agreement EXHIBIT F ................................................................................... DWSRF Loan Agreement EXHIBIT G ............................................................................ Watershed Legal Description EXHIBIT H ................................................................................................. Retained Assets EXHIBIT I ............................................................................ Form Statutory Warranty Deed EXHIBIT J ..................................................................................... Service Area Description EXHIBIT K .................................................... Form Memorandum of Interlocal Agreement ii INTERLOCAL AGREEMENT BETWEEN THE CITY OF BREMERTON AND TRACYTON WATER DISTRICT FOR ASSUMPTION OF RIGHTS, POWERS, DUTIES, OBLIGATIONS AND TRANSFER OF ASSETS OF WATER DISTRICT This Agreement is made and entered into pursuant to Chapter 39.33 RCW, the Intergovernmental Disposition of Property Act and Chapter 39.34, RCW the Interlocal Cooperation Act as of the date fully executed below, by and between the CITY OF BREMERTON, a municipal corporation of the state of Washington, (hereinafter "CITY") and TRACYTON WATER DISTRICT, a municipal corporation of the state of Washington, (hereinafter "DISTRICT"), together referred to as the "PARTIES". RECITALS A. The CITY and the DISTRICT, by Agreement dated June 29, 1966, attached hereto as Exhibit "A" recorded under Kitsap County Auditor's No. 899819, Vo. 884 Page 843 and incorporated herein by this reference, (hereinafter "Service Agreement"), agreed to allocate duties and responsibilities in the providing of water services to customers within the DISTRICT's water service area. In summary, pursuant to the Service Agreement, the CITY agreed to provide all water, assume ownership of all of the water distribution system of the Tracyton Water District situated within its service area including the piping, appurtenances, related water distribution equipment, improvements and facilities (hereinafter "Facilities"), and provide maintenance and billing services to the customers of the DISTRICT, and the DISTRICT agreed to approve all water hookups, set front foot assessment fees, determine water availability within the DISTRICT, and generally represent the water supply issues and interests of its customers. B. The CITY and the DISTRICT entered into an interlocal agreement pursuant to Chapter 39.34 RCW dated February 29, 2000, attached hereto as Exhibit "B" recorded under Kitsap County Auditor's No. 3241384 and incorporated herein by this reference, for the design, construction and financing of upgrades to the Facilities in anticipation of dissolution of the DISTRICT. Pursuant to said agreement, the DISTRICT is obligated for all costs of the upgrades, including, but not limited to: administration, design, procurement, construction, inspection, and securing financing, including bond counsel fees, if any. C. It was necessary for the PARTIES to establish the method by which costs of construction inspection, and administration of the upgrades to the Facilities was to be financed. D. The CITY and the DISTRICT entered into an interlocal agreement pursuant to Chapter 39.34 RCW dated April 30, 2001 attached hereto as Exhibit "C' and incorporated herein by this reference, regarding financing the design and construction of upgrades to the Facilities. -1- E. The CITY and the DISTRICT entered into a Memorandum of Understanding April 30, 2001 attached hereto as Exhibit "D" and incorporated herein by this reference, clarifying the understanding that the DISTRICT's responsibility for watermain replacement is identified on Exhibit "A" of the February 29, 2000 Interlocal Agreement as "Initial District Watermain Replacement Projects", Project ID numbers 01 through 21 inclusive (Phase 1 or DISTRICT Projects), and the CITY's responsibility for water main replacement is identified as "Future City Substandard Watermain Upgrades", Project ID numbers F1 through F8 inclusive (Phase 2 or CITY Projects). F. The DISTRICT, with the assistance of the CITY, secured a Public Works Trust Fund (PWTF) loan pursuant to a loan agreement and amendment 1 thereto, with a twenty (20) year term for the design of upgrades to the Facilities in the amount of $197,000.00, said agreement and amendment attached hereto as Exhibit "E" and incorporated herein by this reference, and a Drinking Water State Revolving Fund (DWSRF) loan pursuant to a loan agreement with a 20-year term for the capital construction of Phase 1 and Phase 2 upgrades to the Facilities in the amount of $3,008,490.00, attached hereto as Exhibit "F" and incorporated herein by this reference. The PWTF loans and the Phase 1 portion of the DWSRF loan are repaid by a surcharge on water rates initiated by the DISTRICT on January 1, 2003 in the amount of $15.91/month which the CITY collects from DISTRICT water customers. G. The DISTRICT is the owner of certain real property consisting of approximately 39 acres formerly part of its reservoir watershed ("Property") located in Kitsap County, Washington, known as Kitsap County Assessor's Tax Parcel No. 022401-2-003- 2008, more particularly described in Exhibit "G", attached hereto and incorporated herein by this reference. The Property has an appraised value of $721,000 for the land and $280,000 for the harvestable timber for a total appraised value of $1,001,000. H. The DISTRICT is also the owner of certain water system Facilities which have not been conveyed to the CITY as other such Facilities pursuant to the Service Agreement, the Interlocal Agreements and the Memorandum of Understanding noted above. I. Pursuant to RCW 35.13A.070, Chapter 39.33 RCW, the Intergovernmental Disposition of Property Act, and Chapter 39.34 RCW, the Interlocal Cooperation Act, a city and a water district may contract for the transfer of water district assets to the city and the city's assumption of all rights, duties, powers and obligations of the water district. J. The DISTRICT agrees to convey and deed to the CITY all its interest in DISTRICT assets including title to the Property set forth in Exhibit "G" and all Facilities and assets of the DISTRICT except for those assets set forth in Exhibit "It" attached hereto and incorporated herein by this reference, and the CITY agrees to assume all rights, powers and duties related to the ownership, management and operation of the water distribution systems, and to assume the loan obligations of the DISTRICT as set forth in paragraph 4. -2- K. The DISTRICT intends to dissolve the Tracyton Water District on a date subsequent to the transfer of assets to the CITY and the CITY's assumption of all rights, duties, powers and obligations of the DISTRICT as set forth herein. L. A heating was held by the DISTRICT pursuant to Chapter 39.33 RCW, the Intergovernmental Disposition of Property Act on November 10, 2003. M. This agreement was approved by the Bremerton City Council on January 28, 2004 and the Tracyton Water District Board of Commissioners on ,2004. AGREEMENT NOW, THEREFORE, for a good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the PARTIES agree as follows: 1. Recitals. The above recitals are incorporated as if set fortb herein in full. 2. Prior agreements. The terms and conditions of the interlocal agreements between the PARTIES dated February 29, 2000 and April 30, 2001 and the Memorandum of Understanding dated April 30, 2001, (collectively "Agreements"), remain in effect except to the extent such may be amended herein. Said Agreements are incorporated herein by this reference. 3. Assumption of Operations. The CITY hereby agrees to assume all rights, powers and duties of the DISTRICT as authorized by law related to the ownership, management and operation of water distribution systems and the providing of water to water customers of the DISTRICT. 4. Assumption of Loans. The CITY hereby agrees to assume the loan obligations of the DISTRICT as of the effective date of this agreement consisting of two loans as provided for in the Agreements, namely 1) the Public Works Trust Fund loan for the design of certain upgrades to the water system with a current balance of approximately $168,425.81 plus accrued interest, and 2) the Drinking Water State Revolving Fund loan for the capital construction of certain upgrades to the water system with a current balance of approximately $1,720,522.15 plus accrued interest. Following execution of this agreement, the PARTIES will work together to effectuate assumption of the loans with the holder of the same. The CITY agrees to assume the loan obligations upon execution of this agreement, as provided herein, whether or not such loans are formally assumed. No other liabilities or obligations of the DISTRICT are assumed by the CITY except as specifically provided in this agreement. 5. Transfer of Assets. In exchange for the assumption of rights, duties, powers and obligations of the DISTRICT including loan obligations by the CITY, the DISTRICT hereby agrees to transfer and convey to the CITY all its interest in DISTRICT assets as follows: -3- a) The Property described in Exhibit "G" by statutory warranty deed to be executed concurrently with this agreement in substantially the same form as attached hereto as Exhibit "I". The DISTRICT will procure owners title insurance for the benefit of the CITY to insure good and clear title to the Property for a minimal level of coverage in a form and amount subject to the approval of the CITY. b) All of the Facilities and assets, except for those more particularly described in Exhibit "H", which conveyance will be effective upon execution of this agreement which shall constitute a bill of sale for said Facilities. However, any DISTRICT cash and the balance of funds remaining in the financial accounts identified in Exhibit "H" remaining in existence on the date of formal dissolution of the DISTRICT will be conveyed to the CITY on the date of formal dissolution or as soon as practical thereafter. 6. Phase 2 Improvements. The CITY will use its best efforts to complete Phase 2 improvements by December 31, 2005. 7. Loan Payments. The DISTRICT has been repaying its loans from the Public Works Trust Fund and the Drinking Water State Revolving Fund fi.om water surcharges levied on DISTRICT customers as noted above. These surcharges are being levied by the DISTRICT for Phase 1 upgrades until such time as the DISTRICT is dissolved. After DISTRICT dissolution hereof, the CITY will continue to levy said surcharges of $15.91/month for Phase 1 upgrades and make loan payments to the Public Works Trust Fund and the Drinking Water State Revolving Fund until such time as the Phase 1 amount of the loans are repaid. As consideration for the conveyance of the Property by the DISTRICT to the CITY, the CITY will offset the outstanding loan to the credit of the Phase 1 loan amount by the amount of $1,001,000, the appraised value of the Property, leaving a total loan balance of approximately $890,566 as the balance to be repaid by water rate surcharges for the Public Works Trust Fund and the Drinking Water State Revolving Fund loans. It is the intent of the DISTRICT and CITY that after the credit fi.om the Property is applied against the two loan balances owing, the two loans will continue to be paid for the remainder of their respective 20 year periods, and the current surcharge of $15.91/month paid by Tracyton's customers will he reduced by an amount estimated to be approximately $7.80/month, assuming a closing of this transaction by October 1, 2003. The estimated reduction of surcharge will be adjusted based on the date of the actual closing. 8. Dissolution of District. The DISTRICT further agrees to dissolve the Tracyton Water District following the transfer of assets to the CITY and the CITY'S assumption of rights, duties, powers and obligations of the DISTRICT in the water distribution system. Provided, however, that the DISTRICT may defer the date of its dissolution and remain in existence in a limited capacity until it is satisfied that the CITY's obligations hereunder have been or will be met. -4- 9. District Service Area. The service area of the DISTRICT for purposes of this agreement is set forth in Exhibit "J" attached hereto and made a part hereof by this reference. 10. 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 (100%) plus the monthly surcharge to meet the debt service requirements of the DISTRICT loans. At such time as the DISTRICT loans are fully repaid, the surcharge shall be removed and water customers shall be charged rates as county residents (150%). 11. 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. Dtmng calendar year 2001, the FFF was discounted 100% for existing users to the water system improvements. On January 1 of each year thereafter, the FFF discount will be reduced by five percent (5%) until such time as the DISTRICT FFF shall be equal to the fee charged customers in unincorporated Kitsap County. As an example, the 100% FFF discount for calendar year 2001 is reduced by 5% each succeeding calendar year for a 95% FFF discount for calendar year 2002 and 90% for calendar year 2003 and the discount will continue to be reduced until it is eliminated. For each year that the FFF is collected, the amount collected shall he credited to the outstanding loan debt applicable to the sumharge and the sumharge shall be recalculated accordingly. The CITY will honor this reduction following closing of this agreement. 12. 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. 13. Rates, Fees and Charges - Effect of Annexation. In the event that properly 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, except for the surcharge set forth in Section 7, which shall remain in effect as provided in said section. 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. 14. Indemnification and Insurance. CITY hereby releases, indemnifies, and promises to protect, defend, and save harmless DISTRICT from and against any and all liability, loss, damage, expense, action, and claim, including any and all claims on any obligations not specifically assumed by the City pursuant to this agreement, including costs and reasonable attorneys' fees incurred by DISTRICT in defense thereof, asserting or arising directly or indirectly on account of or out of any acts or omissions of CITY or CITY's servants, agents, employees, or contractors in its operations and performance of the Water System pursuant to the Agreements. DISTRICT hereby releases, indemnifies, and promises -5- to protect, defend, and save harmless CITY from and against any and all liability, loss, damage, expense, action, and claim, including costs and reasonable attomeys' fees incurred by CITY in defense thereof, asserting or arising directly or indirectly on account of or out of any acts or omissions of DISTRICT or DISTRICT's servants, agents, employees, or contractors in its operations and performance of the Water System pursuant to the Agreements. Any judgments and costs of defense resulting from the acts or omissions of DISTRICT or DISTRICT's servants, agents, employees, or contractors in its operations and performance of the Water System pursuant to the Agreements which cannot be recovered due to the dissolution of the DISTRICT, may be recovered by a surcharge to the water customers of the DISTRICT prior to the effective date of this agreement. Prior to assessing a surcharge to cover such liability, the CITY will seek recovery from any available insurance policies, if any, known to exist which may provide coverage, thereafter, any amount not so recovered may be assessed by a surcharge. The DISTRICT intends to procure tail liability insurance to cover its liability exposure. The parties will work together to assign the beneficial interests of such insurance, if any, to the CITY upon dissolution of the DISTRICT._This section shall survive closing of this agreement. 15. Full Satisfaction. Except as provided in Section 14, the execution and delivery of this Agreement and DISTRICT's performance of its obligations hereunder shall, upon dissolution, constitute full and final satisfaction of its obligations to the CITY pursuant to the Agreements. 16. 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. 17. Amendments. The parties hereby further agree that this Agreement cannot be amended or modified without the written concurrence of both parties. 18. 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 19. Venue. This Agreement shall be constructed and interpreted in accordance with the laws of the State of Washington. 20. 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; -6- (b) This Agreement, including any other express provisions of this Agreement whether incorporated by reference or otherwise; (c) The Memorandum of Understanding between the PARTIES dated April 30, 2001; (d) The interlocal agreement between the PARTIES dated April 30, 2001; (e) The interlocal agreement between the PARTIES dated February 29, 2000; and (f) The Service Agreement dated June 29, 1966. 21. Successors and Assigns. The rights and obligations of the DISTRICT and the CITY shall inure to the benefit of, and be binding upon, their successors and assigns. 22. 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. 23. Condition of approval. This agreement is conditioned and subject to the approval of the governing body of both parties. 24. Memorandum of Agreement - Recorded. A memorandum of this Interlocal Agreement shall be recorded in the Kitsap County Auditor's Office along with related deed(s) following execution of this Agreement in substantially the same form as attached hereto as Exhibit "K" attached hereto and incorporated herein by this reference. 25. Water System Transfer. Pursuant to WAC 246-290-035(2)(a), the owner of a public water system shall provide one year notice to the Department of Health prior to the transfer unless the new owner agrees to an earlier date. The CITY, as the proposed new owner, agrees to an earlier date of transfer for the purpose of this provision. 26. Agreement to Cooperate. It is agreed hereto by the parties that the parties will cooperate and work together following upon execution of this agreement and any time subsequently thereafter to finalize and execute any and all documents that may by necessary to complete the transactions contemplated herein. 27. Duplicate Originals. This Agreement is executed in duplicate originals. This Agreement approved and entered into by the undersigned parties on the date fully executed as follows. CITY OF BREMERTON TRACYTON WATER DISTRICT CARY BOZEMAN, Mayor GARY KEENAN, Commissioner DATED DATED -7- TIM KNAPP, Commissioner DATED LEE WINTEROWD, Commissioner DATED APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attomey ATTEST: ATTEST: PAULA JOHNSTON, Interim City Clerk , Secretary -8- COMES NOW TRACYTON WATER DISTRICT, a municipal corporation of the State of Washington, through its duly elected, qualified and acting Board of Water Commissioners, hereinafter called "Tracyton", and the City of Bremerton, a city 6f the first class of the State of Washington, through its duly elected, qualified and acting City Council, hereinafter called "Bremerton", and WHEREAS Tracyton has a present and continuing water emergency by reason of insufficient supply and at times inadequate quality of water, together with an increased burden of servicing, maintenance, accounting and billing, and WHEREAS Bremerton has a surplus of potable water in close proximity to Tracyton, in addition to tlhe presently contracted supply, requiring a minimum expenditure to serve Tracyton with an increased supply, and has operating, maintenance and accounting personnel and equipment and procedures to readily serve Tracyton's needs, and WHEREAS the parties hereto are desirous and intend by this agreement to provide interim emergency assistance to Tracyton by supplying increased amounts of potable water to Tracyton through an eight inch main and pressure reducing station, supply to Tracyton meter reading and~billing service through Bremerton'$ existing water department equipment and personnel, and maintain and service, at rates herein set forth, and in addition, when Tracyton requests, extend Tracyton's mains and laterals at Tracyton;s cost, all until an election by electors of Tracyton to be held at the September primary or November general election, 1966, under authority of R.C.W. 57.08.020 and .030 for conveyance of Tracyton water system to Bremerton. Secondly these parties further intend and are desirous to contract herein for transfer of Tracyton water system to Bremerton in the event its electors vote for such transfer and to Exhibit A ~.. contract the rates to be charged and the service to be provided Tracyton's users by Bremerton. Third and finally these parties intend and agree that, in the event the electors decline to transfer the Tracyton system to Bremerton, the parties shall he relegated to their respective positions, rights and duties as existed prior to this agreement except as to lease of main and reducing station installations, the parties recognizing a difference of opi~ as to the validity or meaning of agreement dated June ?, 1960. NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS: 1. Bremerton will install water main along Riddell Road connecting at the westerly extremity of the currently existing water main on that street, and extending westerly along Riddell Road to Bunker Street and connection with the currently existing mains of Tracyton. This pipe shall be installed in 8-inch size of cast iron ~aterial and of sufficient pressure classification as will serve the circumstances, pressures and conditions there pertaining. 2. Bremerton will also install a pressure reducing station within Tracyton District limits properly housed as will have sufficient capacity and size to permit the supply to Tracyton of its needs for water as these needs exist through the various seasons of the year, and with sufficient pressure reducing and changing characteristics as will supply water at pressures compatible with the existing mains and distribution system and needs of current customers of Tracyton. 3. The parties acknowledge that Bremerton made the necessary investigation and determination of facts, conditions existing, and has by its personnel made the neSessary design and engineer- ing findings for the above installations. The parties acknow- ledge that Tracyton relies upon Bremerton's representations and ability in this field. The installation of the above facilities will be made entirely by the forces and with materials supplied by Hremerton. After completion of installation all of said pipeline within Tracyton District boundaries and the said reducing station shall be leased by the City of B~emerton to Tracyten Water District, which said District shall rent same from the City of Bremerton. The lease term shall he from date of completion of said installation until either a conveyance to Bremerton of Tracyton water system upon election, or by full payment of the lease consideration, whichever first OCCUrs. The lease con- sideration is $8.~1~,?$ and shall be paid $125.00 monthly commencing the ~0th day following centification cf rejection on election for conveyance of rracytcn water system to Bremer- ton and continuing each month thereafter until lease consider- ation is paid. Lease consideration may be prepaid by Tracyton, in which event it shall rec$ive a discount from the lease consideration remaining unpaid of ~ 1/2%/. upon payment of the ~/ lease consideration in full or as discounted Tracyton shall be and become the owner of such pipe line and pressure'reduc- lng station without further proceedings by these parties nor instruments of conveyance. In the event of an affirmative vote in the election hereafter specified, under which the electorate of Tracyton Water District shall approve a convey- ance from Tracyton to the City of Bremerton of the water system, the lease herein provided shall forthwith terminate and cancel; the said line shall be and remain the property of Bremerton, and Tracyton shall not be obligated further in regard to the payment of rental or under said lease. 6. On the pipeline thus installed no hook-ups or connections shall be made except under the auspices of Tracyton, which District shall determine the appropriate front footage to be paid by the respective properties as a charge for connection permission, this to be in addition to the normal and usual connection charge for water meter installation and hook-up. The said front footage connection permission fee as received shall be paid by Tracyton to Bremerton, and the same be credited upon the rental as herein reserved. 7. Unless and until conveyance to Bremerton of Tracyton,s water system shall occur, all w&ter mains now or hereafter in- stalled within the boundaries of Tracyton shall be and remain the property of Tracyton, with the exception that ownership of the main on Sandra Lane and Vena Street and that main subject to lease shall be and remain that of Bremerton. Service to customers from>said~¥ema and Sandra Lane lines shall be as customers of Bremerton. 8. Construction of the connection main shail commence forthwith and be completed within thirty days. All construc- tion and installation shall be in a good and workmanlike manner, with adequate materials. 9. Commencing with the meter reading dated June 2?, 1966, Bremerton shall performall meter readings, computation of water charges, billing, receipt for sums so paid and account therefor. And Tracyton will bill to July 1, 1966 and will pro- vide such records as are necessary and appropriate to assist the City in determination of the appropriate future billings. For the period commencing Julyl, 1966 Bremerton shall bill the Tracyton customers at $3.50 per month for a minimum of 660 cubic feet and 33 cents per hundred cubic feet in excess thereof, said meter readings and billings to be hlmonthly. Tracyton will pay unto Bremerton for the services to he rendered under this agreement $2.50 per 500 cubic feet basic minimum and 33 cents per 100 cubic feet in excess thereof for the particular customers involved, said billings to be bimonthly. During the summer sprinkling period upon proper customer application, billing by Bremerton of Tracyton customers will be at the rate of $5.50 per 2,500 cubic feet minimum, and the excess at 25 cents per hundred cubic feet. Tracyton will pay to the City $5.00 per 2,500 cubic feet minimum for summer sprinkling rate customers and 25 cents per hundred cubic feet over said mini- mum. The billing to Tracyton by Bremerton at this new rate (4) ~ of charge by Bremerton to Tracyton shall be pro rated for the month of commencement between the date of completion of the connection above mentioned and the first of the next month. The services provided prior to that completion date shall be billed and paid for at the prior rate heretofore existing 10. The monies herein referred to shall at all times be the property of Tracyton until accounting and payment by Tracyton of the sums due Bremerton. After proper accounting ~he pay- ment for services and water as aforesaid shall be immediately due. All records pertaining thereto shall be the property of Tracyton. Tracyton shall have access at all reasonable and proper times to the records aforesaid. Bremerton shall supply copies on request thereof and retain originals. ll. Balances on outstanding water bills will be billed by Bremert0n, the past due amounts being entirely the property of Tracyton. ~ 12. All receipts and disbursements, until such time as the conveyance of system as herin is provided, shall be deposited and made through the office of the Kltsap County Treasurer and Auditor, pursuant to statutory requirements. lB. Billings to customers for water service rendered shall be on the first part of the month, immediately following meter readings. 14. During the term of this agreement Bremerton shall per- form all necessary and appropriate maintenance and operation Functions at no charge to Tracyton. Extensions and new in- stallations shall be made by Bremerton, as requested by Tracy= ton, at cost plus 15 per cent. Tracyton, however, reserves the right to order this work done hy others, according to standard specifications for municipal public works construction as prepared by the Washington Ghapter American Public Work~ Association 196B as revised, or equal. Meter installations will be made at a cost as is set forth hereafter,to-wit: I 5/8"to 314" $100.00 1" 180.00 1-1/2" 400.00 2" 560.00 Taps of sizes larger than two inch shall be charged at actual cost of material, labor and 15 per cent for supervision and overhead. Any permits for crossing state or county roads shall be obtained by Bremerton. The cost thereof shall be paid by customers making requests for meter installations. 15. The agreement between the parties as above set forth shall continue as an lntermim agreement between the date hereof and the date of election hereafter set forth. In the event of a negative vote upon the proposition of conveyance to Bremerton of the Tracyton distribution system, this interim agreement as above stated shall forthwith cease on the date of cer~ification of the results of said election; provided, however, that the provisions for lease of water line and reducing stations as aforesaid shall remain in full force and effect. Duplicate records of Tracyton shall be by Bremerton forthwith returned to Tracyton in good order and condition. 16. The commissioners of Tracyton agree to submit to the electors of the Tracytcn Water District, at either the primary election in September of 1966, or the regular election in November of 1966, a proposition with regard to the conveyance to Bremerton of the water system, pipes and appurtenances, excluding, however, buildings and lands, the said conveyance to be pursuant to contract for future service, maintenance, operation and extension as hereafter outlined. In the event of an affirmative vote as by statute required, the following agreement shall become effective and be executed and carried out by the parties hereto. l?. Tracyton will convey to Bremerten its water system, including pipes and appurtenances, excluding, however, all lands and buildings. Tracyton, in the conveyance to Bremerton, will reserve any and all · tools, equipment and any and all pumps and tanks not necessary to the operation of the system. They shall rmain the property of Tracyton. 18. Tracyton shall transfer to ~remer~on its supply Of mat~rial~ on hand, acceptable to Bremerton, as of the conveyance date at cost, ~ which said price shall be paid by Bremerton. 19. A surcharge for the prorata cost of fire hydrants, standby and maintenance charges shall be established by Tracyton and billed by Bremerton, if so requested by Tracyton. In addition to supplying standby water supply service to the fire hydrants connected to Tracyton mains there shall be furnished included in the monthly charge hereafter specified the service of periodic and as needed maintenance of the hydrants. Testing and inspection of said hydrants is expected by the parties to be furnished by the fire district having authority at the place of location of particular hydrants. In the absence of agreement by the fire district involved to p~form such function Tracyton may cause it to be performed by others on a periodic basis. Copies of tests shall be furnished by the party performing same to Bremerton, Tracyton and the fire district. Failure to perform maintenance as required by said inspections shall cause elimination of the monthly charge for the period that the maintenance is not performed. Bremerton shall furnish to Tracyton or the fire district in whose area the hydrant may be installed according to Tracyton's direction, performance and report forms of the nature currently in use from time to time, such will enable the fire district personnel to make proper reports of malfunction regarding the said hydrants. 20. The hydrant standby supply and maintenance charge hereafter referred to shall not include any charge for any hydrant access to which is on private property or on property which is fenced or enclosed in any manner. Hydrants so located shall not be serviced except by special arrangement. 21. Bremerton will supply to the present and future customers of Tracyton an adequate water service at appropriate pressure and qualit~ at the meter as long as Bremerton shall maintain a public water supply distribution system. 22. Bremerton shall supply customers of Tracyton through individual meters at monthly rates as hereafter set forth, for minimum of 500. cubic feet or less of water supplied: ~eter Size: Hinimum Charge: $/8. to 3/~,, ~ 2.80 l" , 5.oo 1-1/2" 6.00 2" 8.00 3" 12.00 N" 20.00 6. 8o.oo 8" 50.00 12" 75.00 there shall be charged for the next q,500 subic feet, 33 cents per hundred cubic feet; for the next 15~000 cubic feet~ 27 cents pep hundred cubic feet; and in excess of 20,000 cubic feet at the rate of 20 cents pep hundred cubic feet. Tracyton will pay to Bremerton $1.85 per hydrant standby charge fop water supply service and maintenance to fire hydrants connected to and established on Tracyton water lines. 23. Tracyton reserves the right to establish a special surcharge over and above the basic charges aforesaid, the same to be the money of Tracyton and to be used for Traoyton purposes, to be varied from time to time according to the Tracyton Water Co~unissione~s discretion, thc same to be collected by Bremerton and remitted to the proper official of Tracyton. The rates aforesaid are rates which are cumrently established by Bremerton by ordinance for customers being served out of the City limits. The aforesaid rate may be changed by Breme~ton by amendment of ~ts o~dinance from time to time; provided~ however, tha~ the char~es to Tmacyton customers shall not be increased or decreased except in the same amount as, o~ directly in proportion to any chan~e in water rate charged to customers of Bremerton residing within the City limits. 25. Rates for services not specifically covered ~by this agreement shall be as agreed between the parties he~eto. 26. The rates above set forth shall be applicable for each meter installation; p~ovided, howeveP~ that where two oP more separately occupied buildings are under separate ownership~ management or control (8) and are being served through one meter~ the minimum rate for each such building shall be $2.$0 per month for basic quantity of $00 cubic feet per month per building, with water in excess of said amount per unit per month to be charged for at the excess rates above set forth. 27. Where two or more units of occupancy~ whether by business or dwelling units~ are under a single roof or single ownership or custody or control, and are supplied through a single meter, a single minimum rate for serviee to said premises in accordance with the size of meter as aforesaid~ and for excess as aforesaid, shall be applicable. 28. During such periods as sprinkling rates for irrigation shall be established by Bremerten for its customers within the City a special rate for sprinkling or irrigating shall be available to Tracyton customers, which rates shall be $5.00 per 2,500 eubic feet or less per month, with the excess being charged at 25 cents per hundred cubic feet. 29. The said summer sprinkling rates aforesaid shall be subject to change by BremePton by ~endment to its ordinance~ provided that the limitation on increase or decrease by a percentage of in-the-city customer rate as aforesaid shall similarly apply. 30. The Tracyton's fire dlstrict~ or such other fire district as may have jurisdiction at the site of location~ shall be entitled to install and maintain and connect to the watem mains involved the fire hydrants which such fire district may select~ and thereafter same shall come under applicable provisions hereof, the fire district to be entitled to make installation of said hydrants at locations it seleets, the City, however~ to make connections to the main at cost plus 15 per cent. 31. Bremerton shall maintain the water meters in good state of repair as a part of normal maintenance operation and so as to guarantee the accuracy thereof. Bremerton will test on rgquest of a customer by hn approved method any customer's meter, and if found to be in error, three per cent or greater in the City's favor shall make such (9) test and necessary repair and reinstallation at Bremerton~s expense, otherwise the cost of testing shall be borne by the customer at Bremertonts cost plus 15 per cent. 22. Penalties for late charges in payment of water bills or meter installations or costs of water main installation, i.e.~ front footage fee for permission to connect, shall be as established by Bremerton from tLme to time. This said penalty collected by Bremerton shall belong to gremerton in compensation for its services rendered in collection procedures; provided~ however~ the said penalty~ charges for delinquency and the delinquent charge itself may be transferred to Tracyton for its enforcement of so much of said penalty and delinquency charges as it is empowered to enforce by statute, the amount collected after deduetin~ expenses of so doing to be paid by Tracyton to Bremerton. 33. Excessive registration of water consumption caused by broken or leaking underground water service pipe on customer's pmemlses~ or connecting to said premises~ when without the knowledge or fault of the customer~ shall be adjusted during any perio~ of twelve months but after making repairs. The basis for adjustment shall be the normal consumption appropriate to said premises under similar operating conditions. Whenever necessary to interrupt service to supply Bremerton shall give notice a reasonable time in advance by publication in a newspaper of ~eneral circulation in the area~ so as to avoid inconvenience to customers or injury to customers property. This notice requirement shall not be applicable in emergency breakdown situations. 35. Bremerton shall not serve any customers except as a customer of Tracyton in an area described as follows: Ail within existing boundary of Tracyton upon the date hereof and also that area lying South of a line commencing at the intersection of Barker Creek and Traeyton Beach Road~ thence southeasterly to the quarter section corner common to Sections 22 and 27 Township 25 N. Rg. 1E, !~M; thence southerly along the North-South centerline of Section 27 to Hewitt Road, thence southeasterly to NE corner of ~J~e, SE 1/4 of SE 1/4, Section 27, Township N., R1E, WM., thence Sou to Tracyton boundary. 36. Any extensions of ~he water mains conveyed to Bremerton and with- in the boundaries heretofore defined shall be as ordered by Tracyton, in- stallation thereof to be Performed hy Bremerton work force with materials provided by Tracyton; provided, ho'wever, Tracyton may elect to cause same to be installed by others, provided such installation shall be of standard materials and laid according to specifications generally applicable and applied by Bremerton. Cost of labor and materials to be borne by Tracyton. 3T. The parties acknowledge that heretofore a~rangements with private individuals have been made by Tracyton, whereby such individuals have installed water mains at their own expense and conveyed same to Tracyton under agreement to the effect that additional extra charges will be made to persons thereafter connecting to such installed mains over and above the usual connection charge; that this excess charge is to be disbursed to the private imdividual making the installation. Tracyton will inform Bremerton as to the circumstances involved in such situations, and Bremerton thereafter will, before making connection, collect the approp- riate monies in compliance with such agreements. 38. Bremerton shall maintain adequate records as to the properties paying costs of installations so that a proper account and status of payment for main installations shall be readily available and determinable. 39. Records as to the financial transactions had with customers being served through the Tracyton mains and extensions thereof shall be maintained. 40. All monies hereafter paid by property owners for costs of main installation within the above described Tracyton District and area i.e., front footage fee for permission to connect, whether such installation was heretofore or is hereafter made, shall be the property of Tracyton, with the exception of the main installed on Sandra Lane and Vena Avenue by Bremerton heretofore. The records maintained by Bremerton with regard to Supply of water to Tracyton customers, billings, meter installations, engineering data and records, water main installation and charges, contributions and payments by properties and property owners for main installation, shall (n) be so maintained as to be segregated from the generaI records of the City of Bremerton. These shall be available at all reasonable and proper times to the appropriate ~uthorities of Tracyton for examination and reproduction. 42. In the event of the annexation of any portion of Tracyton to Bremerton so as to become a part thereof, then this agreement shall have no further force or effect as to the customers served in the annex- ed area, or as to the mains therein installed with the provision that thereafter at no expense to Tracyton, Bremerton shall maintain and keep in operating condition any main in the annexed area whose function it is to provide service to other areas in Tracyton not so annexed. This contract shall terminate in the event that Bremerton or its successor in interest shall cease to maintain a public water supply distribution system, and or upon such termination there shall be a reconveyance by Bremerton, or its successor, to Tracyton of all of Tracytonrs water mains, extensions or replacements thereof, not within the City of Bremerton, said reconveyance to be unto such body, person, persons or entity as may be designat'ed by Tracyton,or its successor; provided further, that in the event of such recon- veyance after a portion of Tracyton has been annexed by Bremerton, there shall be continued use of mains through the annexed area where necessary to provide supply to portions of Tracyton not annexed. 44. Bremerton shall accept responsibility for all obligations existing, approved, or hereafter accruing with regard to existing water main installation, and shall honor and perform the agreements made between Tracyton and individuals with regard to installation of water mains, the payment therefor, and the reimbursement thereof. (12) 45. In the event of disagreement with regard to interpretation of the agreement or the arising of matters or disputes or circum- stances not covered by this agreement, the parties hereto agree that the same shall be arbitrated~ the said arbitration to be performed by a board of three arbitrators, one selected by each of the parties herto, the third, who shall be the Chairman, to be selected by the arbitrators so chosen, selection by each party of its arbitrator to be made within twenty days of notice in writing from the other party, which arbitrators shall within ten days select the third. In the event of failure to select the entire Board of Arbitrators witin thirty days after notice, or in the event of failure of the arbitrators within thirty days from their selection to conclude their arbitration, or if either party is dissatifled with the arbitration result, it may thereafter commence action in the Superior Court of Kitsap County to determine the matters in dispute, including determination of matters not specifically agreed to herein, the parties hereto hereby conferring upon the said court the Dower to make such determination. 46. In addition t~ othe~ ~emedies P~0vided by~la~ ~¢~ ~rty shall be entitled to mandatory injunction to enforce the provisions thereof. THIS AGREEMENT EXECUTED in triplicate thls~.~,~day of June, 1966. CITY OF BREMERTON A CORPORATIO __'- , Glenn K. ~stad, mayor Attest: E.H.T. McGowan/City Clerk TRACYTON WATER DISTRICT, A MUNICtPA5 CORPORATION Tracyton Water Dfstr~ct Commissioners After Recording return to: Tracyron Water District P.O. Box 2013 Silverdale, WA 98353 Summary for Recorder's [;'se: 1. Reference Number of documents being assigned or release.d: Not Applicable 2. Grantor(s): I. CITY OF BREMERTON, a Washington Municipal Corporation; 2. TP,.ACYTON WATER DISTRICT, a Washington Municipal Corporation; 3. Grantee(s): 1. CITY OF BRE~LEKTON, a Washington Municipal Corporation; 2. TtLACYTON WATER DISTRICT, a Washington Municipal Corporation; 4. Legal Description: Not Applicable INTER.LOCAL AGREEMENT BETWEEN CITY OF BREMERTON AND TRACYTON WATER DISTRICT Regarding the Duties, Design, Construction, and Financing of Water System Upgrades within Tracyton Water District in Anticipation of District Dissolution and District Annexation into City.. THIS INTERLOCAL AGREEM]gNT is made and entered into pursuant to the provisions of Chapter 39.34 RCW (Interlocal Cooperation Act), this ~ day of ~ ~/~,,4 ~,, ~,, ,2000, by and between the CITY OF BREM]ERTON (hereinafter referred to as "CI~FY'') and TRACYTON WATER DISTRICT (hereinafter referred to as "DISTRICT"), and collectively referred to as the "Parties". Pursuant to RCW 39.34.040, after this Agreement is executed it Will be recorded with the Kitsap County Auditor. Chapter 39.34 RCW encourages local government units to make the mosi efficient use of their powers by enabling them to cooperate with one another to their mutual advantage and thereby provide services and facilities to the public ha a more efficient and cost effective manner. The CITY and DISTRICT, by agreement dated June 29, 1966 (the "Service Agreement"), provide water services to customers within the DISTRICT's water service area. In summary, pursuant to the Service A~eement, The CITY provides all water, owns all the piping and appurtenances, and provides maintenance and billing services to the customers of the DISTRICT, and the DISTRICT approves all water hookups, sets front foot assessment fees, determines water availability within the DISTRICT, and generally represents the water supply issues and interests of its customers. Exhibit B Imerlocal Agreement ~"~ 02/10/00 Cit~ of Bremerton & Tracyton Water District Page I The DISTRICT has completed a capital improvement plan for needed improvements as an element of the DISTRICT's Interim Water Plan dated June 1998, (hereinafter referred to as the "Plan"). The parties desire to implement the Water Main Replacement Projects as described in the Capital Improvement Schedule, Table 8-3, of the Plan (hereinafter referred to as the "Project"). In accordance with the terms of the Service A~eement, the CITY will own, maintain, and operate the infrastructure constructed pursuant to the Project. The DISTRICT lacks the technical and administrative resources to facilitate implementation of the Project. The CITY has agreed to provide the resources to facilitate implementatiori of the Project on a cost reimbursable basis as set forth in this Agreement. NOW THEREFORE, the parties through their respective legislative bodies, in consideration of the foregoing recitals, and the mutual covenants and promises contained herein, agree as follows: 1. PURPOSE. The purpose of this A~eement is to set forth the terms and conditions by which the CITY and DISTRICT will implement the water system infrastructure improvements described in the Capital Improvement Schedule, Table 8-3, of the Tracyton Water District Interim Water Plan, 1998 (attached hereto as Exl'fibit "A"). 2. ADMINISTRATION TEAM. The CITY and DISTRICT shall each appoint two individuals, who may be DISTRICT and CITY officials, who shall meet on a regular basis, at least twice a month or at such other intervals or times a~eed to by the Parties, to administer the terms of this Agreement and represent the interests of their respective entities. This body shall herein be referred to as the "Administration Team". If the Administration Team shall ever disagree on any issues related to this Agreement, after first making a concerted effort to reach a~eement, with a~eement still not being reached, they shall seek guidance f~om their respective governing bodies. The members of the Adrrfinistration Team, and the DISTRICT and CITY, shall always seek to deal with one another in a spirit of cooperation, openness, fairness, and in a timely manner, so the goals of this Agreement may be fully met in a timely and cost effective manner. 3. RESPONSIBILITY OF THE PARTIES. A. PROJECT COSTS. The DISTRICT shall be obligated to pay all costs of the Project, including, but not limited to: administration, design, procurement, construction, inspection, and securing fmancing, including Bond Council fees, if any. B. DISTRICT PERFORMANCE. The DISTRICT shall perform all duties and acts in a good and timely manner that the ADMINISTRATION TEAM believes are reasonably required for support of the CITY's duties in implementing the Project. C. CONVEYANCE OF PROJECT PROPERTY TO CITY AT COMPLETION. · The DISTRICT shall, in accordance with the Service Agreement and upon completion of the Project, convey to the CITY ownership of all improvements covered by the Project. Interlocal Agreement ~ City of Bremerton & Tracyton Water District Page 2 02/10/00 D. REIMBURSEMENT OF PROJECT COSTS. The DISTRICT shall, v,,'ithin 30 days of receipt of invoice, reimburse the CITY for costs of the Project not other,vise provided directly to the CITY by Project Financing; PROVIDED, HOWEVER, all Project costs not provided by Project Financing shall, before being inct.ured, be specifically approved by the DISTRICT, which approval shall not be unreasonably withheld. In its work hereunder, the CITY shall strive only to incur those costs covered by Project Financing as defined herein. In incurring costs not provided for by Project Financing, fi'~e CITY shall seek only to incur those costs that are absolutely necessary to implement the Project as determined by the Administration Team, and shall seek at all times to keep those costs to the absolute minimum. E. CITY DUTIES. The CITY shall provide, on a cost reimbursable basis, all services required to secure financing for the Project, in a form and on terms reasonably a~eeable to the DISTRICT; i.e., bond financing, secured by the assets and/or future revenues of the DISTRICT and properties served by the improvements; or loan and ~ant applications such as Washington State Public Works Trust Fund, State Revolving, Fund, etc. It is the intent of the parties that these said costs shall be covered by the Project Financh. g. The CITY shall manage implementation of the Project by selecting and contracting, on behalf of the DISTRICT, with a qualified engineering consultant for the desig-n of the Project with plans, specifications, and estimates, for the purpose of securing competitive bids for construction of the Project. The DISTRICT shall pay ail costs associated with these tasks with the intent that these costs will be covered by the Project's financing package. The CITY shall keep the Administration Team advised, on a regular and timely basis, of its efforts in this regard. The CITY shall, through competitive bids, conlract, on behalf of the DISTRICT, for the construction of the Project. Prior to accepting the lowest responsible bid for the Project, the CITY shall fully advise the DISTRICT of the CITY's reasons for accepting the successful bid. The CITY shall manage and inspect all aspects of the Project's construction in a tim.ely and cost effective manner. The CITY, as Project manager, shall be responsible for Project accounting, making disbursements to the CITY, consultants, and contractors hired to complete the project and for monitoring the project and project budget. The CITY shall keep the Administration Team advised on a regular basis of all Project accountings and answer all questions the Administration Team may have regarding the same. The CITY shall invoice the DISTRICT for ' all costs of the Project not otherwise provided directly to the CITY by Project Financing according to the procedure herein established for non-Project Financing costs. 4. ADMINISTRATION. A. PRO,rECT MA~NAGER. The Project manager for this project shall be the City Engineer. The City Engineer shall make every reasonable effort to insure the Project is completed in a timely manner and on budget The CITY Engineer shall keep the Administration Interlocal Agreement City of Bremenon & Tracyton Water District Page 3 ~ ''] 02/10/00 Team informed on a continuing basis of its work and shall promptly answer all questions directed to it by the Administration Team. B. FIN.AzNCING. Necessa~ financing, will be arranged by the CITY Treasurer, which financing shall first be approved by the DISTRICT, which approval shall not be unreasonably withheld. Project Financing shall include provision of funding for all costs associated ~vith the Project including financing, desi~.~n, construction, and administration. It is acknowledged that elements of Project Financing may include bonds, grants, loans, and DISTRICT funds for ineligible costs incurred and local match, if not otherwise provided. C. AGENCY. After agreement has been reached between the CITY and DISTRICT regarding the terms of any element of the Project Financing, the CITY shall act in accordance with the terms of such financing agreement on a timely basis, and shall act as the DISTRICT's agent in ail matters thereafter related to financing and billing for the Project. 5. TERzM. This Ag-reement shall take effect upon its execution by both the CITY and the DISTRICT, and shall continue until the Project is completed, all available funds from Project Financing are expended, or the DISTRICT is dissolved, whichever event occurs first. 6. ENTIRE AGREEMEtN'T. This Agreement constitutes the entire agreement between the parties regarding the matters contained herein. Both parties acknowledge that, excepting the Service Agreement, there are no other applicable agreements, written or oral, that have not been fully set forth in the text of this Agreement. 7. AMENDMENTS. The parties agree this A~eement cannot be amended or modified without written concurrence of both parties: 8. 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 Bremenon Tracyton Water District Department of Public Works and Utilities P.O. Box 2013 3027 Olympus Drive Silverdale, WA 98383 Bremerton, WA 98310-4799 9. VENUE. This Agreement shall be constructed and interpreted in accordance with the laws of the State of Washington. 10. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by ~ving, 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 Interlocal Agreement ~'~ City ofBremerton & Tracyton Water DistriCt Page 4 '"' "" 02/10/00 (c) The Service Agreement; (d) The terms and condtttons of the funds bern= d~stnouted. I 1. DISSOLUTION OF DISTRICTi The parties agree to negotiate the dissolution of the DISTRICT in the future. The DISTRICT is agreeable to its dissolution with ail DISTRICT functions being.taken over by the CITY so long as tb.e CITY agrees to provide the same level of ser¥ice to the DISTRICT's customers as [t Provides to its other water customers and at a service rate structure agreed to by the CITY and the DISTRICT prior to dissolution. If reasonably required, Bond counsel will be consulted on the feasibility, and structuring for DISTRICT dissolution, and CITY assumption of DISTRICT debt may be incorporated into the bond issue do.cuments. The CITY is agreeable so long as assumption of any debt does not limit the CiTY's debt capacity to a level unacceptable to the CITY. 12. VALIDITY. If any section of this Agreement is adjudicated to be invalid, such action shall not affect the validity of any section not so adjudged unless such invalidity shall substantially compromise the overall purpose of this Agreement. 13. DEFAULT. A party, shall be deemed in default under the terms of this Agreement if it fails to substantially perform its duties hereunder after first having, received written notice from the non-defaulting party itemizing the default(s), with those defaults not being cured wittfin forty-five (45) days from the date the notice is received. A notice shall be deemed "received" two days after mailing the same by certified mail, return receipt requested, from a U.S. Postal drop site in K/tsap County to the other party's address for the receipt of notices as set forth herein, or upon the delivery date of personal delivery upon any person signing this Agreement, with the receiving party signing a receipt therefore. After default has occurred, the non- defaulting party shall have the right to brine, an arbitration action as set forth in section 14. hereof for specific performance and/or damages as conditions shall warrant. The non- defaulting, party shall also be entitled to any other rebel afforded in law and/or equity in the arbitration proceeding. 14. ARBITRATION. In the event legal action becomes necessary hereunder, the parties agree the venue and jurisdiction of any such legal action shall reside in Kitsap County with the Kitsap County Superior Court. In the event of legal action, the parties further agree to submit uny dispute(s) hereunder or relating to this agreement into arbitration pursuant to RCW Chapter 7.04, except as modified in this section 14, and tO provide the selected arbitrator with all jurisdiction (legal and equitable) to fully and completely' settle all matters in dispute. When the need for arbitration arises, the party demanding arbitration, pursuant to RCW 7.04.060, shall serve upon the other party, personally or by registered mail, a written notice of its intention to arbitrate. Such notice shall state in substance that unless within twenty (20) days after its service, the party served therewith shall serve a notice of motion to stay the arbitration, the party receiving the notice shall thereafter be barred from putting, in issue the existence or validity of this section 14 of this agreement to arbitrate or the failure to comply herewith. Interlocal Agreement City of Bremerton & Tracyton Water Dislrict Page 5 ~'-~ 02/I 0/00 Application to arbitrate, pursuant to RCW 7.04.030, shall be made by motion to the court. When the matter is placed intO arbitration on tlqe motion of either parry, the court action shall be stayed. The arbitration shall proceed pursuant to the rules established in RCW Chapter 7.06 entitled MANDATORY AR.BIT1L,kTION OF CIVIL ACTIONS, except as modified in this section 14. One arbitrator s_hall be selected from the coup's mandatory arbitration list in the same manner as established in RCW Chapter 7.06, and the local rules, dealing with mandatory arbitration. The taking of depositions, the issuance of Interrogatories, Requests for Production, and Requests for Admission, shall be specifically authorized as provided by law as if this said were proceeding as a civil c~se in Superior Court. The arbitrator Shall issue his or her decision in the same manner prescribed in RCW Chapter 7.06 w/thin twenty (20) days from the close of the arbitration hearing. A party may appeal the decision of the arbitrator pursuant to RCW 7.06.050: within twenty (20) days after the filing of the arbitration award, the aggrieved party to perfect its appeal rights must file w/th the superior court clerk a written notice of appeal and request for a trial de novo in superior court on all issues of law and fact. Provided, however, pursuant to . RCW 7.06.060, and local court rules, if the aggrieved parry filing the appeal does not improve its position in superior court, that party shall have assessed against it, the other party's reasonable attorney fees and costs incurred from the date the notice of appeal was filed. The prevailing party or parties in any such arbitration action and/or court action shall be entitled to receive its/their reasonable attorney fees and costs of suit from the losing party. Agreement (~ 0 InterlocaI City of Brernerton & Tracytnn Water D/strict Page 5 02/10/00 15. AGREEMENT APPROVAL. This Agreement i~ approved and entered into by the undersigned local government units as of the date set forth at the commencement of this Agreement. CITY OF BREMERTON LYN~' S. HORTON, Mayor ATTEST: K_ATHLEEN MCCLUSKY, ~ity Clerk DEP:-'~RTMENT Ala-PROV,~LS: W. EUGE~ S~, P.E. Director of Public Work~ ~d Utilities ~CH H~A, ~r ~PRO~D AS TO FO~: GL~~~A, CiV A2omey ~' , / ~EE ~0~,~C°mssi°neF Pa§c7 ~l 02/10/00 STATE OF WASHINGTON) ) ss cor~IMISSIONER ACKNOWLEDGEMENT COU~'NTY OF KITSAP On this day personally appeared before me the three commissioners for Tracyton Water District, namely, GARY KEEN.AxN', TIM KNAPP, and LEE WINTEROVv'D, to me known to be the individuals described in and ~vho executed the within and foregoing instrument, and acknowledged that they signed the same as their free and voluntary act and deed, for the purposes therein mentioned on behalf of the said District. AND SWOPN TO before me thi~ day of "~o_-]'3. ,2000. SIGNED // _ Pr/nt Name Iq,~"*.~-d NOTA_,q.Y PUBLIC in and for the State of Washin~on, residing in % ~-l-k l-~.. My Coramission Expires: /ab · Tmcyton Water System File From 6~ Draft Intedocal Agreement City of Bremerton & Tracyton Water Dislrict Page 8 02/10/00 EX-HIB IT "A" InterlocaI Agreement City of Bremerton & Tracyton Water District AGENDA BI~ l BKENfERTON CITY COUNCfL 1. ' SUBJECT: INTER.LOCAL AGREEMENT FOR AGENI)A OF: Februar~,~'_, 2000 W'~TH THE TRACYTON WAT£R DISTR.[CT OR/G12NATi'NG DEPT: Public Works & Utilities. - OKIGE',tATOR: W. Eugene Sampley, DATE SUBM/I i'ED: .i'anua.r'y' 18, 2000 2. CLEA_R.AaNCES: I=omu~=~on ba~k ~'.a~,}~/J 3. EX.HI]BITS City Cis' Treasurer '~', ~k~' .-- A. Tracyton Water District Map. Adminisu'arive Services Depm'-maent , -4~-~, ~,_ <._.L...~ B. InterlocaI A~-eement. MAYOR. -~,~ 7J' APPROVED BY C0blqCIL PRESIDENT FOR SUBM/I n~kL: , ~. SUMiYLA_RY STATEMENT ~WD REOUIREMENT FOR COUNC~]L ACTION: The Board of Commissioners of the Tracyton Water Disnict anticipates dissolution of the District with the sei-,dce area being assumed by the City of Bremerton Water Utilky. l~ior to acceptance of the District's service area by the Cky, the exisffng water ~mem must be upgraded to cm'~nr standards. The D~strict completed a Capital Improvement Plan (CIP) for the needed improvements as an el~ment of the Tracy~on Water Disrrlct Interim Water Plan (1998). The Dis'a-ict lac~ the technical and adm{n~s~'~ve r~sourcea to facilitate implementation of the projects identiSed in the CIP. The attached Int~rlocal A__o-~m~nt authorizes the City' and District to work cooperatively on imPlementing the water main replac~ment proj~ts as described in the CIP. The City will impiCmenration of the project tlxoug, h selection and contracting with a quail/led cn_mineering consultant to. design the project, competitively bidding th~ project, adrni,~stering the conS~raction, and provide assistance in securing. financing for the project· The District shall be obligated for all costs of the project Financing of these improvements ahail be sm~ctm~ for District dissolution and City as~-umption of the District's debt without effecting other Bremcrton Wat~- System r~te pay~m. Sta~ recommends approval of the attached Inrerlocal 8. RE COM2MENDATION: ' That the City Council approve t~e Intertocal Agzeement betw~u the City of Bremerrun and the Trmzyton Water District, and authorize and direct the Mayor the execute the same ':"--. 9. RESPONSIBLE OFFICIAL: Director, PW&U ENF©RCElVI~NT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED L/// DISAPPROVED AMENDED ^omvoA No: 00-02-7 2. CLEA. RANCE COMMENTS: 5. 13'I]~ACT ON NON-PASSAGE: The Trac~on Water District w~l nor be able to improve their wa~er system for assumption by the Bremerton Water System. The Dist~ct will continue to exist and provide inadequate water sen4ce'to its customers, or will be ~s~trn~ by another enti~. 6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EourP.M2E~NT OR OTHER RESOURCES: All work performed in accordance v,4th tb~s I.uterlocal A~eement will be funded by the Tracyton.Water District. 7. RESEARCTI SOURCES 20011 TFLAC:~i. ON SERV] C~= .ARF..A II TRACYTON WATER DISTRICT DISTRICT & SERVICE AREA BOUNDARIES ' SERVICE AREA BOUNDARY ~ WATER DISTRICT BOUNDARY INTERLOCAL AGREEMENT BETWEEN THE CITY OF BREMERTON AND TRACYTON WATER DISTRICT Regarding Financing the Design and Construction of Water System Upgrades within Tracytou Water District ~ T_HIS INTERLOCAL AGREEMENT is made and entered into this ~ day of ~ ,7 / · 2001, by ~d between the City of Bremenon (hereinafter "CITY" and Tracyton Water Dislrict (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 enablin~ 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/lune 29, 1966 (the Service Agreement), provide water services to customers within the DISTRICT's water service area, and WI:I~REAS, the CITY and the DISTRICT entered into an agreement dated February 29, 2000 for the Design, Construction and Financing of Water System Upgrades with/n Tracy~on Water Dis~ct in Anticipation of Dis~ct Dissolution, and WHEREAS, the DISTRICT is obligated for all costs of the Project, including, but not limited to; adr~i-~strat/on, design, procurement, cons~.tction, inspection, and securing financing, /nclud/ng Bond Counsel fees, if any, and WHEREAS, the DISTRICT, with the assistance of the CITY, secured a Pub'l~c Works Trust Fund loan for the design of the Project, and WHEREAS, the DISTRICT, with the assistance of the CITY, secured a S~ate Revolving Fund loan for the capital construction of the Project, and WHEREAS, the PAP. TIES desire to establish the method by which capital construct/on of the Project, includ/ng construction, inspection, and admin/stration will be financed, and W'RF. REAS, the CITY is, subject to reimbursement by the DISTR~CT, malting and will continue to make payments to consultants and contractors for design and consWact/on 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 Interlocal Agreement-2/27/01 Tracyton Syst*m h,,v,~¢~=n~ ~,~ Exhibit C Page l 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 PAKTIES through their respective legislative bodies in consideration of the mutual covenants contained herein, do agree as follows: 1. PURPOSE. The purpose of th~s 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 Februm-y 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 mount not to exceed five hundred thousand dollars ($500,000). This loan shall bear interest at the rate of 5% per armum, wkich 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. Th~ CITY s.hall 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. PAYIVIENTS 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 PAYS'lENTS. The DIST'RICT 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. At, er 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 EXH/BIT "A" attached hereto and made a paxt hereof by this reference. 8. CUSTOMER RATES. The monthly rote formula for customers wittfin 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 Interloeal Agreement-2/27/01 ~ Tracyton Syst~n Im~rovemeat~ 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 K/tsap 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 un/ncorporated K/tsap County. 10. ALL OTHER FEES .a2~D CIIARGES. All other fees and charges shal! be equal to. those charged by the CITY to its customers in unincorporated Kitsap County. 11. RATES, FEES AND CI:IARGES - EFFECT OF A~N1NEXATION. In the event that properzy or customers within the district serv/ce 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. Pr/or to dissolution, the provisions of BMC 15.02.040, SERVICE BEYOND CITY LI2MIrS, shall not apply to such existing service, However, BMC 15.02.040 shall apply to all properties requesting utility service fi:om the CITY after the effective date of dissolution. 12. TERM. This Agreement shall take effect upon execution of the Agreernent 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 a~knowledge that, excepting the Serv/ce Agreement, there are no other agreements, written or oral, that have not been included by reference in this Agr&ement. 14. AMlgNDM]glh'TS. 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 Brerncrton Tracyton Water District Depaxhaent of Public Works and Utilities P.O. Box 2013 3027 Olympus Drive Silverdale, Wash/ngton 98383 Bremerton, Washington 98310 Intel'local Agreement -2/27/01 ~ t~ Tracyton Syst~'n hu~:~o¢~ 16. VENIJE. This Agreement shall be constructed and interpreted in accordance with the laws of the State of Washington. 17. ORDER OF PRECEBENCE. In the event of an inconsistency in th/s 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 oft.he 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. LYNN S. HORTON, Mayor OA~lf K.~EN/(2~-'~orn~nis~si;ner DEPAR~ APPROVAL: ) ~~~. TIM KNAPP, Commissioner W. EUGENE S Director of Public Works and Utilities LEE WINTEROWD, Commissioner DAVID ST. ?mRl~ Assistant City Attorney ATTEST: ATTEST: KATHZEEN McCLUSKEY, City Cl~rk Interloeal Agreement-2/27/01 70 Tracylon System h,,~rovements [NTERLOCAL AGI~EF_MENT BETV/EEN THE CITY OF BREMEn. TON AND TRACYTON WATI~R DtSTR. ICT TRACY'I'ON SERVICE AREA TRACYTON WATER DISTRICT DISTRICT & SERVICE 'AREA BOUNDARIES SERVICE ~(REA BOUNDARY ORDINANCE # 4760 ORDINANCE to approve an interlocal agr_ eement with the Tracyton Water District regarding financing the design and consu'uction of water system upgrades with Tracyton Water District, and waive the provisions of BMC 15.02.040 as it applies to that agreement. WHEREAS, the City of Bremenon (CITY) and the Tracy~on 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 Februa~ 29, 2000 for the Design, Construction and Financing of Water System Upgrades within Tracy~on Water Disu-ict in Anticipation of District Dissolution, and WIqEREAS, the CITY and the DISTRICT successfully secured a PubLic Works Trust Fund loan for the design and a State Revolving Fund loan for the construction of . the project, and WI-rlr. REAS, 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 Wmr, REAS, the CiTY will assume the DISTRICT's water service area upon the DISTRICT's dissolution, and W'FI'EREAS, properties served by the District prior to dissolution of the District will be considered customers of the CITY at the I/me of dissolution, and WI:P~.REAS, 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 BREM]gRTON DOES HEREBY ORDAIN: SECTION 1. Interloeal Agreement. The attached interlocal agreemeat Regarding Financing the Design and Construction of Water System Upgrades within Traeyton 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 LRvffrs, 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 LIlY[ITS, 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. ATTACI'tME~: Interlocal Agxeement Regarding Financing the Desig~ and Construction of Water System Upgxades within Tracy~on Water District APPROVED by the City Council on the 5_rst reading this 7t~ day of March, 2001. PASSED by the City Council of~e CiG of Bremerton this 14t~ day of March, 2001. --"J0-'kIN LA5/~ c' Council President APPROVED this ~mff.-daY o~'~,200 I L~N S. HORTON Mayor ATTEST: ~.~?ff-~ ~L~Osr~?, City C~erk / EFFECTIVE DATE PUBLICATION DATE ~ ORDINANCE NUMBER AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ~rlT,.~r READING FORAGENDA OF: March 7, 2000 Ordinance # 47~OApprovMg an Intedoca~ ORIGINAI11NTG DEPT: Public Works & Utilities Agreement wkh bhe Tracyton Water Distfic~ and ORIGINATOR: W.E. Samplcy, Director Wa~vins the Provisions of BMC 15.02.040. DATE SI/BMI'ITED: Februarf 20, 2000 2. CI.~ARANCES: (Co,--,~t o~ b:w.k~ee~) 3. ~ITS: /~rCi~y Aaoreey ...fl~l~'"-/--,._ · lntedocmJ Agreement --Cc~Y'e_c-~-.~ Cop},' Tr urer · Wry'Won Uap Operations CommiRee PRF-COUNC ~, 3/7/ql Fiscal & Budget Comm. PRE-COUNC I L 3/7/01 ENDORS~ /5(' ~TFORM~TION APPROVED BY COUNCIL PI~E~IDE1NT FOR SUBMJ.'FfAL: 4. SUMMARY STATEMElh~r AND REQI,rillEMIgNT FOR COI. INCI~ ACTION: / On February 29, 2000, the Tmcyton Water dim-ict and City of Bremerton entered i_mo an interlocal agxn~a~ent for the design, construction and fimncing of water systcrn upD~'~des within Tracyton Water Di~:rict in anticipation of District dissolution. The City and District su~ s~zured a Public Works Trust Fund loan for the desig~ and a State R~volving Ftmd loan for construction of tti¢ project. The attached I~terlocal Agreement completes the agreement be~twe~ the City and the District providing for an inter-governmental loan for cash ttow requirements during construction, setting forth the means for repayment of all loan% ~d other proxdsions for rates, fi-ont foot. ag, 8. RECOMMENDATION: 2) Imovetha~d~CkyCoun~pass Ordh"mnc~#Z~'~(~ 0 on second rem:1~ng. 9. RESPONSIBLE OFFICIAL: Dirge'tot of Public Works'& UfiEfies ENFOR~ OFFICT4L: Dh-ec~or of Publlc Works & U'd~'~s FOO'IRATION DATE: NA REY]EW DATE: NA 18. NOT~CE OF ACTION PI.;I,r,mm__ TABLED__ APPROVED1 / DISAPPROVED__ 'AMENDED__ 2.' .CLEARANCE COlVI/VIENTS: 4. SUMMARY STATEMENT (Continued) fees and the effect of annexation of properties within the benefit area. F'mancing of these improvements ~re structured for District dissolution and City assumption of thc District's debt. Additionally, the attached Ordinance # ~ waives, prior to dissolution, the provisions of BMC 15.02.040 (SERVICE BEYOND CITY LIIVffI'S) for all properties served by the Tracyton Water District that at the time ofdlssolution of the District become water service customers of the City ofBremerton. Staffrecommends that City Council approve Ordinance # oc'll: c~ approving the Imertocal Agreement between the City of Bremerton and the Tracyton Water District, and waiving the provisions of BMC 15.02.040. 5. IM?ACT ON NON-PASSAGE: The Tracyton Water District will not be able to improve their water system for assumption by the Br~m~'ton Water System. The District w~l continue to exist and provide ;,aclequate water service to its customers, orwfll be assumed by another 6. IMPACT ON STAFFING. BIYDGETS. FA('31,1TIES~ EOLqI'MENT OR OTn'E,R RESOLrRCI~..R: No impact on budget. All work performed in accordanc~ with ~ Iuterlocal 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: MEMORANDUM OF UNDERSTANDING This M~MOR.4NDUM OF UNDERSTANDhN'G between the City of Bremerton (CITY) and the Tracyton Water District (DISTRICT) is for the purpose of clarifying the financial obligations and use of financial resources for the work to be accomplished as set forth in Inteflocal Agreements dated February 29, 2000 and Ae,~-,,.. ~, 2001 between the CITY and DISTRICT. The CITY and DISTRICT understand that the DISTRICT's responsibility for watermain replacement is identified on Exhibit "A" of the February 29, 2000 Inteflocal Agreement as "Initial District Watermaln Replacement Projects", Project ID numbers 01 through 21 inclusive (DISTRICT Projects), and the CITY's responsibility for watermain replacement ' is identified as "Future City Substandard Watermain Up~ades", Project ID numbers F1 through F8 inclusive (CITY Projects). Also, the CITY and DISTRICT understand that ~n. ffiScient funding exists through Public Works Trust Fund and State Revolving Fund to complete both DISTRICT Projects and CITY Projects, and it is the best interest of both CITY and DISTRICT to complete all projects with the available funding. Therefore, the CITY and DISTRICT agree that Sect/on 6 "DISTRICT LOAN PAYMENTS" of the Interlocal Agreement dated ~,t,~. r~, ,2001. is clarified as follows: The surcharges levied on DISTRICT customers, prior to and after DISTRICT dissolution, to repay its loans from the Public Works Trust Fund and State Revolving Fund shal! be limited to the amount required to pay principal and interest on that portion of the loans used to finance DISTRICT Projects. Principal and interest on that portion of the loan proceeds used to finance CITY Projects shall be repaid by the CITY. Dated this __. day of ,2001. City of Bremerton Tracyton Water District Exhibit D PUBLIC WORKS TRUST FUND PRE-CONSTRUCTION LOAN AGREEiVIENT NUMBER PW-99-691-PRE-114 Tracyton WareF District PART I: ENTIRE AGREEMENT This agreement, and incorporated attachment~, contains all terms and conditions agreed to by the DEPARTMENT and the LOCAL GOVERNMENT. This contract consists of nine pages and two attachments. An attachment to this agreement, ATTACHMENT I: SCOPE OF WORK, consists of a description of local project activities, certification of the projects useful life, and identification of estimated project costs and fund sources and is, by this reference, incorporated into this agreement as though set forth fully herein. In addition, ATTACHMENT II: ATTORNEY'S CERTIFICATION, is by this reference incorporated into this agreement. The DEPARTMENT and the LOCAL GOVERNMENT have executed this agreement as of the date and year last written below. DEPARTMENT OF COMMUNITY, TRADE LOC~ GOV~NT AND ECONOMIC DEVELOPMENT Stev~ 'V~e-lls ' Director. Local Government Divisioa t~j ~_9~.,3 ~ f, ~'-, ~/c~ ~'~-~ Title Title Date D Approved as to Form by Attorney General Federa| Taxpayer Identification Number Signature On File Su?arlne Shaw Assistant Attorney General January 5, 1999 R l:C l: I V :D N AY 1 7 ZOO0 Page 1 6 1999 PWTF Pre-Construction Loan Agwement Exhibil E PART H: ]~TRODUCTION This loan agreement is made and entered into by and between the DEPARTMENT OF COMMUNITY', TRADE AND ECONOMIC DEVELOPMENT, (or its successor) a department of the state of Washington (referred to as the "DEPARTMENT")' on behalf of the PUBLIC WORKS BOARD, or its successor, (referred to as the "BOARD"), and Tracyton Water Disa'ict (referred to as the "LOCAL GOVERNMENT"). The DEPARTMENT has received an appropriation from the Washington State Legislature under the authority of Chapter 43.155 RCW to provide financial assistance to selected units of local government for the repair, replacement, reconstruction, rehabilitation, or improvement of bridges, roads, domestic water systems, sanitary sewer, and storm sewer systems. Acting under the authority of Chapter 43.155 RCW, the BOARD has selected the LOCAL GOVERNMENT to receive a Public Works Trust Fund loan for an approved public works project. PART HI: PURPOSE The DEPARTMENT and the LOCAL GOVERNMENT have entered into this agreement to undertake a local public works project which furthers the goals and objectives of the Washington State Public Wor~ Trust Fund Program. The project will be undeaaken by the LOCAL GOVERNMENT and will include the activities described in ATI'ACHMENT I: SCOPE OF WORK, as well as in the Public Works Trust Fund Application submitted to the BOARD by the LOCAL GOVERNMENT and upon which this agreement is based. The assisted project must be undertaken in accordance with PART IV: TERMS AND CONDITIONS, and all applicable state and local laws and ordinances, which by this reference are incorporated into this agreement as though set forth fully herein. PART IV: TERM3 AND CONDiTiONS The parties to this agreement agree as follows: 4.01 Rate and Term of Loan The DEPARTMENT, using funds appropriated from the Public Works Assistance Account, shall loan the LOCAL GOVERNMENT a sum not to exceed $197,000.00. The interest rate shall be three percent (3%) per annum on the outstanding principal balance. The term of the loan shall not exceed 5 years, with the final payment due July 1, 2004. 4.02 Local Prcieot Share The LOCAL GOVERNMENT pledges an amount of locally-generated revenue not less than ten percent (10%) of the total eligible portion of the project cost not funded by federal or state grants as identified in ATTACHMENT I: SCOPE OF WORK, to be verified at the time of project close-out. Any change in the percentage of locally-generated funds may require an adjus~nent in the loan amount or interest rate charged, or both. In such event, the LOCAL GOVERNMENT agrees to execute an amendment to this agreement adjusting the loan amount or interest rate, as appropriate. Page 2 ~ 1999 PWTF Pre-Construction Loan Agreement "7~ CTED Contxact Number S00-69100-075 Local project share must consist of expenditures eligible under WAC 399-30-030(3) and be related only to project activities described in.ATtACHMENT I: SCOPE OF WORK. These expenditures may be made up to twelve (12) months prior to the execution of the loan agreement and verified at the time of project close-out. PUBLIC WORKS TRUST FUND MONIES MAY NOT BE USED TO REIMBURSE THE LOCAL GOVERNMENT FOR ANY COSTS INCURRED PRIOR TO EXECUTION OF THIS LOAN AGREEMENT. 4.03 E~isbursemant of Loan Proceeds The DEPARTMENT shall issue warrants to the LOCAL GOVERNMENT for payment of allowable expenses incurred by the LOCAL GOVERNMENT while undertaking and administering approved project activities in accordance with ATTACHMENT I: SCOPE OF WORK. In no event shall the total Public Works Trust Fund loan exceed ninety percent (90%) of the eligible actual projent costs. The disbursement of loan proceeds shall be initiated by the LOCAL GOVERNMENT on a Washington State Invoice Voucher form provided by the DEPARTMENT. The loan funds will be disbursed to the LOCAL GOVERNMENT as follows: Within thirty (30) days of the formal execution of this agreement, a sum not to exceed seventy-five percent (75%) of the approved Public Works Trust Fund loan shall be disbursed by the DEPARTMENT to the LOCAL GOVERNMENT. At the time of project completion, a Close-out Report, (refer to Section 4A9 for Close-out Report), shall be submitted to the DEPARTIv[ENT by the LOCAL GOVERNMENT certifying total actual project costs. The final Public Works Trust Fund loan disbursement shall not bring the total loan in excess of ninety percent (90%) of the eligible project costs or the total of $197,000.00 whichever is less, nor shall this disbursement occur prior to the completion of all project activities and clearance of all Close-out documents and/or any applicable documents from the Department of Revenue and the Department of Labor & Industries. The Close-out Report shall serve as a contract AMENDMENT for determining the final loan amount, interest rate; and local share. Itt' ~e event that the final costs identified in the Close-out Report indicate that the LOCAL GOVERNMENT .has received Public Works Trust ·Fund monies in excess of'ninety percent (90%) of eligible costs, all funds m excess of ninety percent (90%) shall be repaid to the DEPARTMENT within thirty (30) days of submission of the Close-out Report. Page 3/3 1999 PWTF Pre-Construction Loan Agreement '~ CTED Contract Number S00-69100-078 4.04 Interest Earned on Public Works Trust Fund Monies All interest earned on funds disbursed by the DEPAR~T and held by the LOCAL GOVERNMENT shall accrue to the benefit of the LOCAL GOVERNMENT and be applied to the eligible costs of the approved project. Benefits shall accrue in one of two ways: 1. Reduce the amount of the Public Works Trust Fund loan. 2. Pay part of the eligible project costs that are in excess of ATTACHMENT I: SCOPE OF WORK estimates. (Overrun of project costs.) The LOCAL GOVERNMENT shall establish procedures to ensure that all monies received from the Public Works Trust Fund loan can be readily identified and accounted for at any time during the life of this loan agreement. Such procedures shall consist of the establishment of a separate fund, account, sub-account or any other methodmeeting generally accepted accounting principles. 4.05 Time of Performance The LOCAL GOVERNMENT shall begin the activities identified within ATI'ACI-IMENT I: SCOPE OF WORK no later than three (3) months at~er the date of loan agreement execution and reach project completion no later than eighteen (18) months aRer the date of agreement execution. Failure to perform within the time frame described in the preceding paragraph may constitute default of this agreement and require the immediate repayment of any loan funds disbursed. In the event of extenuating cimumstances, the LOCAL GOVERNMENT may request, in writing, that the BOARD e~tend the deadline for project completion. The BOARD may, by a two-thirds vote, extend the deadline. The term of this agreement shall be for the entire term of the loan, irrespective of actual projeot completion, unless terminated sooner as provided herein. 4.06 Repayment The first loan repayment under this agreement is due July 1, 2000, and subsequent installments are due on July 1 of each year during the term of the loan. The fi~t repayment under this agreement shall consist of interest only at the rate of three percent (3%) per annum, calculated on a 360-day year of twelve 30-day months, applied to funds received from the DEPARTMENT. Interest will begin to accrue from the date the DEPARTMENT issues each warrant to the LOCAL GOVERNMENT. Subsequent repayments shall consist of the principal balance due divided by the loan term remaining plus interest on the unpaid balance of the loan. The final payment shall be an amount sufficient to bring the loan balance to zero. The LOCAL GOVERNMENT has the right to repay the unpaid balance of the loan in full at any time, and the right to repay at a faster rate than is provided in this agreement, provided that any such payment must equal or exceed the amount normally due on an annual basis. Page 4/~ 1999 PWTF Pt~42onstraction Loan Agrccracnt ~0 CTED Contract Number S00-69100-078 The LOCAL GOVERNMENT will repay the loan in accordance with the preceding conditions through the use ora check, money order, or equivalent means made payable to the DEPARTMENT and sent to: Department of Community, Trade and EcOnomic Development Administrative Services Division/Fiscal Unit 906 Columbia Street P.O. Box 48300 Olympia, Washington 98504-8300 4.07 Repayment Account The LOCAL GOVERNMENT shall repay the loan solely from utility revenues, general obligation revenues, or a combirbation thereof. The name of the fund, account, or sub-account shall be 4.08 Default in Repayment Loan repayments shall be made to the DEPARTMENT in accordance with Section 4.06 of this agreement. A payment not received within thirty (30) days of the due date shall be declared delinquent. Delinquent payments shall be assessed a daily penalty beginning on the thirty-first 0 1) day past the due date. The penalty will be assessed on the entire payment amount. The penalty will be twelve percent (12%) per annum calculated on a 360-day year. Upon default in the payment of any annual installment, the DEPARTMENT may declare the entire remaining balance of the loan, together with interest accrued, immediately due and payable. Failure to exercise its option with respect to any such repayment in default shall not constitute a waiver by the DEPARTMENT to exemise such option for any succeeding installment payment which may then be in default. The LOCAL GOVERNMENT shall pay the costs and reasonable legal fees incurred by the DEPARTMENT in any action undertaken to enfome its rights under this section. Page 1999 PWTF Pre-Construction Loan Agreement S l CTED Contract Number S00-69100078 ' 4.09 Loan Security The LOCAL GOVERNMENT must select one of the following options for securing repayment of the 3L loan. Please initial the appropriate option. 1. General Obligation: This loan is a general obligation of the LOCAL GOVERNMENT. OR 2. __ Revenue Obligation: This option may be used only if the entire project is a domestic water, sanitary sewer, storm sewer, or solid waste utility project. LOCAL GOVERNMENTS performing a storm sewer project that have not created a storm sewer utility or a combined sanitary sewer/storm sewer utility may not use this option. Projects providing for a mixture of bridge, road, domestic water, sanitary sewer, and storm sewer activities may not use this option. This loan is a revenue obligation of the LOCAL GOVERNMENT payable solely from the net revenue of the utility system indicated below. Payments shall be made from the net revenue of the utility after the payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance and operations. The DEPARTMENT grants the LOCAL GOVERNMENT the right to issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien and charge of this loan agreement. Please choose and initial one of the following utility systems: Water __ Sanitary Sewer (Wastewater) Stormwater __ Water/Sanitary Sewer __ Stormwater/Sanitary Sewer Solid Waste OR 3. __ Local Improvement District: Pursuant to RCW 35.51.050, the LOCAL GOVERNMENT pledges to repay this loan from assessments collected from a Local Improvement District, Local Utility District or other similar special assessment district in which the improvements financed by this loan are located. The name of the special assessment district is Nothing in this section shall absolve the LOCAL GOVERNMENT of its obligation to make loan repayments when due, and to adjust rates, fees, or surchaxges, if necessary, to meet its obligations under this agreement. Page 6 ~ 1999 PWTF Pre-Construction Loan Agreement ~.2~ CTED Contract Number S0049100-078 4.10 Recordkeeping and Access to Records The LOCAL GOVERNMENT agrees to keep such records as the DEPARTMENT may require. Such records will include information pertinent to work undertaken as part of the project, including demonstration of compliance with the terms and provisions of this agreement and all applicable state and local laws and ordinances. The LOCAL GOVERNMENT agrees to retain these records for a period of three years from the date of project completion. The DEPARTMENT and duly authorized officials of the state shall have full access and the right to examine, copy, excerpt, or transcribe any pertinent documents, papers, records, and books of the LOCAL GOVERNMENT and of persons, firms, or organizations with which the LOCAL GOVERNMENT may contract, involving transactions related to this project and this agreement. 4.11 Reports The LOCAL GOVERNMENT, at such times and on such forms as the DEPARTMENT or the BOARD may require, shall furnish the DEPARTMENT with such periodic reports as it may request pertaining to the activities undertaken pursuant to this agreement including, but not limited to, quarterly progress reports, the Close-Out Report, and any other matters covered by this agreement Failure to file periodic reports as requested may result in termination of this agreement as per Section 4.15. 4.12 Indemnification The LOCAL GOVERNMENT will defend, protect, indemnify, save, and hold harmless the DEPARTMENT, the BOARD, and the state of Washington from and against any and all claims, costs, damages, expenses, or liability for any or all injuries to persons or tangible property, arising from the acts or omissions of the LOCAL GOVERNMENT or any of its contractors or subcontractors, or any employees or agents of either in the performance of this agreement, however caused. In the case of negligence of both the DEPARTMENT and the LOCAL GOVERNMENT, any damages allowed shall be levied in proportion to the percentage of negligence attributable to each party. 4.13 Amendments, Modifications, and Waivers Except for an increase in the amount of the loan governed by this agreement, the LOCAL GOVERNMENT may request an amendment of this agreement for the purpose of modifying the SCOPE OF WORK or for extending the time of performance as provided for in Section 4.05. No modification or amendment resulting ' in an extension of time shall take effect until a request in writing has been received and approved by the Board in accordance with Section 4.05. No amendment or modification shall take effect until approved in writing by both the DEPARTMENT and the LOCAL GOVERNMENT and attached hereto. No conditions or provisions of this agreement may be waived unless approved by the DEPARTMENT in writing. 4.14 Disputes Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement that is not disposed of by this agreement shall be decided by a panel consisting of a representative of the DEPARTMENT, a representative of the LOCAL GOVERNMENT, and a representative of the BOARD. The panel shall reduce its decision to writing and furnish a copy to all parties to the agreement. The decision of the panel shall be final and conclusive. Page 7_~ 1999 PWTF Pre-Construction Loan Agreement . CTED Contract Number S00-69100-07S ( This clause does not preclude the consideration of questions of law in connection with decisions provided for in the preceding paragraph provided that nothing in this agreement shall be construed as making final the decisions of any administrative official, representative, or board on a question of law. 4.15 Termination for Cause If the LOCAL GOVERNMENT fails to comply with the terms of this agreement, or fails to use the loan proceeds only for those activities identified in ATTACHMENT I: SCOPE OF WORK, the DEPARTMENT may terminate the agreement in whole or in part at any time. The DEPARTMENT shall promptly notify the LOCAL GOVERNMENT in writing of its determination to terminate, the reason for such termination, and the effective date of the termination. Upon termination of the loan agreement, the DEPARTMENT shall declare the entire remaining balance of the loan, together with any interest accrued, immediately due and payable. ' 4.16 Governing Law and Venue This agreement shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by, the laws of the state of Washington. Venue of any suit between the parties arising out of this agreement shall be the Superior Court of Thurston County, Washington. The prevailing party is entitled to recover costs in accordance with Washington State Law (Chapter 4.84 RCW). 4.17 Severabilitv . If any provision under this agreement or its application to any person or circumstances is held invalid by any court of rightful jurisdiction, this invalidity does not affect other provisions of the agreement which can be given effect without the invalid provision. 4.18 Project Coropletion The DEPARTMENT will require and notify the LOCAL GOVERNMENT to initiate a Close-out Report when the activities identified in ATTACHMENT I: SCOPE OF WORK are completed. In the report, the LOCAL GOVERNlVIENT will provide the following information to the DEPARTMENT: 1. A copy of the Close-out Report. 2. A copy of the a resolution accepting the design project as being complete. 3. Certification that all costs associated with the project have been incurred. Costs are incurred when goods and services are received and/or contract work is performed. 4. If applicable, copies of the approved closure reports from the Department of Revenue and the Deparhnent of Labor & Industries, certifying that all sales taxes have been paid and appropriate industrial insurance and prevailing wages have been paid. ~ect Close-out In accordance with Section 4.03 of this agreement, the LOCAL GOVERNMENT will submit, together with the Close-out Report, a request for a sum not to exceed the final twenty-five percent (25%) of the loan amount. Page 8 5 1999 PW'rF Pre-Construction Loan Agreement ~1~ CTED Contract Number S00-69100-078 4.20 Audit Audits of the LOCAL GOVERNMENT'S project activities may be conducted by the Municipal Division of the State Auditor's Office in accordance with state law and any guidelines the DEPARTMENT may prescribe. Payment for the audit shall be made by the LOCAL GOVERNMENT. 4.21 Proiect Signs If the LOCAL GOVERNMENT displays, during the period covered by this agreement, signs or markers identifying those agencies participating financially in the approved project, the sign or marker must identify the Washington State Public Works Trust Fund as a participant in the project. 4.22 Utilization of Minority and Women's Business Enterprises (MWBE) The DEPARTMENT reserves the right to add appropriate Minority and Women's Business Enterprise language that is consistent with Initiative 200, which was approved by the voters on November 3, 1998. The DEPARTMENT will advise the LOCAL GOVE~T of this language by letter.. 4.23 Nondiscrimination Provision During the performance of this contract, the LOCAL GOVERNlvlLz"NT shall comply with all federal and state nondiscrimination laws, including, but not limited to chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabi[itins Act (ADA). In the event of the LOCAL GOVERNMENT'S noncompliance or refusal to comply with any applicable nondiscrimination law, regulation, or policy, this contract may be rescinded, canceled, or terminated in whole or in part, and the LOCAL GOVEKNIVIENT may be declared ineligible for further contracts with the DEPARTMENT. The LOCAL GOVEKNMENT shall, however, be given a reasonable time in which to cure this noncompliance.. Any dispute of fact may be resolved in accordance with the Section 4.14, Disputes. PART V: SPECIAL ASSUR.M~CES The LOCAL GOVERNMENT assures compliance with all applicable state and local laws, requirements, and ordinances as they pertain to ~he design, implementation, and administration of the approved project. Of particular importance are the following: 5.01 RCW 43.155.060 The LOCAL GOVERNMENT shall comply with the provisions of RCW 43.155.060 regarding competitive bidding requirements for projects assisted in whole or in part with money from the Public Works Trust Fund program. 5.02 WAC 399-30-030(3) The LOCAL GOVE~T assures compliance with WAC 399-30-030(3) which identifies eligible costs for projects assisted with Public Works Trust Fund loans. Page 9 t~ 1999 PWTF Pn:-Construction Loan Agreement ~ CTED Contract Number S00-69100-078 PUBLIC WORKS TRUST FUND Pre-Construction Program ATTACHMENT 1: SCOPE OF WORK PW-99-691-PRE-114 TraCon Water District (Jurisdiction) Tracyton Water System Upgrade (Project Title) ' 1. Provide a clear description of the project to be financed in part by a Public Works Trust Fund loan. (Attach additional sheets if necessary): The Scope of Work for fidis application is to provide design and bidding services for the Tracyton Water System Upgrade improvements as identified in the "Capital Improvement Plan" (Chapter 8) of the Tracyton l'TaterDistrictlnterirn WaterPlan (June 1998). The proposed improvements generally include an additional connection to the Breraerton water system; an upgrade of the existing Fairgrounds Road pressure reducing valve (PRV) conaection to the Bremerton water system; replacement of substandard water distxibution mains and the addition of new water mains to connect and loop system dead ends totaling approximately 22,200 feet of 8 inch main and 11,700 feet of 12 inch main constructed in the system. 2. The term of this loan will be five years. If the local government prefers the term of its loan to be less than five years, the preferred loan term should be indicated: N/A years. Signed: Gary Kee~a'n, Commissioner Date: January 1'2, 1999 Telephone: (360) 373-3060 JAN 1 6 2000 C:\My DocumenLs\TRACY-I'ON WATER SYSTEM UPGRADE~ScOpe of Work 1999 Pre-ConstnJction Loan.dot Scope of Work Page Two PW-99-691-PRE-114 Estimated Project Costs: Repair or Expansion Total Replacement or Growth Preliminary Engineering $ completed $ $ Design Engineering $ 180,000 $ 0 $ 180,000 Bid-document Preparation $ 5,000 $ 0 $ 5,000 Land/R-O-W Acquisition ' $ $ $ Environmental Studies $ $ $ Sales or Use Taxes $ $ $ Contingency ( %) $ 37,000 $ 0 $ 37,000 TOTAL ESTIMATED COSTS $ 222,000 $ 0 $ 222,000 Anticipated Fund Sources: A. Federal Grants $ 0 State Grants $ 0 B. Locally Generated Revenue $ 25,000 General Funds $ Capital Reserves $ Other Fund $ Rates . $ Assessments $ (LID, RID, ULID) $ -- Special Levies $ Federal Loan(s) from: (identify all) $ $ State Loan(s) from: (identify all) $ $ Other: identify sources) $ $ TOTAL LOCAL REVENUE $ 25,000 C. PUBLIC WORKS TRUST FUND LOAN $ 197,000 C:\My Oocuments\TRACY'rON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-ConstruclJon Loan.dot Scope of Work Page 3 PW-99-691 -PRE- 114 Calculatine Local Percentage: (Note: Please exclude any expansion/growth costs and fi~nding before calculating the local percentage.) Calculate as follows: Total Local Revenue PWTF Loan + Total Local Revenue = Local Loan Percentage 10% The local conl~ibution must be at least: Ten percent (10%) for a loan interest rate of 3% Twenty percent (20%) for a loan interest rate of 2% T~irty percent (30%) for a loan interest rate of 1% C:\My Documents\TRACYTON WATER SYSTEM UPGRADE~Scope of Work 1999 Pre-Construction Loan.dot Public Works Trust Fund ATI'ACHMENT I1: ATTORNEY'S CERTIFICATION I am an attorney at law admitted to practice in the State of Washington and the duly appointed (the LOCAL GOVERNMENT); and I have also examined any and ali documents and records which am.pertinent to the. loan agreement, including the application requesting this financial assistance. Based on the foregoing, it is my opinion that: 1. The LOCAL GOVERNMENT is a public body, properly constituted and operating under the laws of the State of Washington, empowered to receive and expend federal, state and local funds, to contract with the State of Washington, and to receive and expend the funds involved to accomplish the objectives set forth in their application. 2. The LOCAL GOVERNMENT is empowered to accept the Public Works Trust Fund financial assistance and to provide for repayment of the loan as set forth in the loan agreement. 3. There is cun'ently no litigation in existence seeking to enjoin the commencement or completion of the above-described public facilities project orto enjoin the LOCAL GOVERNMENT from repaying the Public works Trust Fund loan extended by the DEPARTMENT with respect to such project. The LOCAL GOVERNMENT is not a party to litigation which will materially affect its ability to repay such loan on the terms contained in the loan agreement. 4. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to the LOCAL GOVERNMENT. Signature of Attorney Date Name PUBLIC WORKS TRUST FUND Pre-Construction Program ATTACHMENT 1: SCOPE OF WORK PW-99-691-P1LE-114 Traevton Water District (Jurisdiction) Tracyton Water System Upllrade (Project Title) 1. Provide a clear description of the project to be financed in part by a Public Works Trust Fund loan. (Attach additional sheets if necessary): The Scope of Work for this application is to provide design and bidding services for the Tracyton Water System Upgrade improvements as identified in the "Capital Improvement Plan" (Chapter 8) of the Tracyton Water D~strict Interim Water Plan (June 1998). The proposed improvements generally include an additional connection to the Bremerton water system; an upgrade of the existing Fairgrounds Road pressure reducing valve (PRV) counection to the Bremerton water system; replacement of substandard water distribution mains and the addition of new water mains to connect and loop system dead ends totaling approx/mately 22,200 feet of 8 inch main and 11,700 feet of 12 inch main conslructed in the system. The term of this loan will be five years. If the local government prefers the term of its loan to be less than five years, the preferred loan term should be indicated: N/A years. Signed: Gary Kee~la'n, Commissioner Date: January 12, 1999 Telephone: (360) 373-3060 JAN 1 4 2000 C:\My Documents~TRACY'rON WATER SYSTEM UPGRADE~cope of Work 1999 Pre-Construction Loan.dot Scope of Work Page Two PW-99-691-PRE-114 Estimated Project Costs: Repair or Expansion Total Replacement or Growth Preliminary Engineering $ completed $ $ Design Engineering $ 180,000 $ 0 $ 180,000 Bid-document Preparation $ 5,000 $ 0 $ 5,000 Land~R-O-W Acquisition $ $ $ Environmental Studies $ $ $ Sales or Use Taxes $ $ $ Contingency ( %) $ 37,000 $ 0 $ 37,000 TOTAL ESTIMATED COSTS $ 222,000 $ 0 $ 222,000 Anticipated Fund Sources: A. Federal Grants $ 0 State Grants $ 0 B. Locally Generated Revenue $ 25,000 General Funds Capital Reserves $ Other Fund $ Rates Assessments $ (LID, RID, ULID) $ Special Levies $ Federal Loan(s) fi.om: (identify all) $ $ State Loan(s) fi.om: (identify all) $ Other: identify sources) $ $ TOTAL LOCAL REVENUE $ 25,000 C. PUBLIC WORKS TRUST FUND LOAN $ 197,000 crt C:\My Documents\TRACYTON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-ConstruclJon Loan.dot Scope of Work Page 3 PW-99-69 I-PRE- 114 Calculatin~ Local Percentaee: (Note: Please exclude any expansion/growth costs and funding before calculating the local percentage.) Calculate as follows: Total Local Revenue PWTF Loan + Total Local Revenue = Local Loan Percentage 10% The local contribution must be at least: Ten percent (10%) for a loan interest rate of 3% Twenty percent (20%) for a loan interest rate of 2% Ttxirty percent (30%) for a loan interest rate of 1% C \M m w-- : y Docu ents\TRACY'TON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-Construction Loan.dot AMENDMENT i~I-LrMBER 1 PUBLIC WORKS TRUST FUND LOAN AGREEMENT NUMBER PW-99-691-PRE-114 BETWEEN THE DEPARTMENT OF COMMUNITY, TRADE ~ ECONOMIC DEVELOPMENT AND TRACYTON WATER DISTRICT The purpose of this amendment is to extend the term of Public Works Trust Fund Loan Agreement Number PW-99-691-PRE-114 fi.om five years to twenty years. This amendment is being entered into based on Pre-Conslxuction program policy adopted by the Public Works Board at its February 3, 1998 meeting. The Washington State Department of Community, Trade and Economic Development (hereinafter referred to as the DEPARTMENT) and Tra;yton Water DisPel (hereinafter referred to as the LOCAL - 114 as described below. Section 4.0~ Rate and Term is amended to read as follows: The DEPARTMENT, using funds appropriated fi.om the Pubhe Works Assistance Accounh shall loan the LOCAL GOVERNMENT a sum not to exceed $197,000.00. The interest rote shall be three percent (3%) per annum on the outstanding principal balance. The term of the loan shall not exceed twenty years, with the final payment due Suly l, 2019. A copy of this amendment, consisting of one (1) page shall be attached to and incorporated into the original agreement between the DEPARTMENT and the LOCAL GOVERNMENT. Any reference in such agreement to the "agreement" shall mean "agreement as amended." All other items and conditions of the original loan agreement or prior amendments shall remain in full force and effect. IN wYrNEsS THEREOF, the DEPARTMENT and the LOCAL GOVERNMENT have executed this amendment as of the date and year last written below. DEPARTMENT OF COMMUNITY, TRADE LOC~L G"~O~'j~R.NMENT Steve Wells Director,,Local Govergment Division __ Title Title APPROVED AS TO FORM ONLY ! 0~ Da~ Attorney General By: Sigr~ature on File ~.~3 JUL 0 Assistant Attorney Genial (Print Name) ~l~l!,[g ~©I~1~ ,..,:,,~ AMORTIZATION SCI-IEJ}ULE /,.~D.~'~./.~o~,Community, Trade and Economic Development .... :"~ ~ 7~ PW-99-691-P~-114 T~C~ON WATER DIS~CT T~C~ON WATER SYSTEM UPG~E Pa~ent~ ~e due on the l~t of July. of the years sho~. 20 YE~S INTE~ST P~NCIPAL PA~ENT B~CE 2.00% 2000 $0.00 g0.00 ' $0.00 $0.00 2001 $4 198.56 _ · $7.776.3~ $11,97a.88 $1~7~750.00 2002 $3,146.84. $9~907.40 $13,054.24 $178,333.21 2003 $3~368.52 $9,907.40 $13~275.92 $168,425.81 2004 $3,170.37 $9,907.40 $13,077.77 $158,5i 8.41 2005 $2,972.22 $9,907.40 $12~879.62 $148,611.02 2006 $2,774.07 $9~907.40 $12,681.47 $138,703.61 2007 $2~375.92 $9.907.40 $12,483.32 $128,796.22 2008 $2,377.78 $9,907.40 - $12~285.18 $118,8~8.81 2009 $2,179.63 $9,907.40 $12,087.03 $108,981.41 2010 $1,981.48 $9,907.50 .. $; 1,888.88 $99,074.01 2011 $1,783.3~ $9,907.a0 $11,690.74 $89~166.6l 2012' $1.585.18 $9,907.40 $I 1,492.58 $79~259.2I 2013'" ~'~03 $9,907.40 $11,294.43 $69,~ 2014 $1 ~ 188.89 $9,907.40 $11,096.29 $59,~.40 2015 $990.74 $9,907.40 $] 0,898.14 $49,537.01 2016. $792.60' $9,907.40 $10,700.00 $39,629.60 2017 $594.45 $9,907.40 _. $I0 501.85 $29,722.~ 2018 $396.29 $9~907.40 $10,303.69 $19,81a.80 2019 · $198.15 $9.907.41 $10,105.56 $9,907.41 $37,662.06 $18~309.53 $223~771.59 Original interest rate was 3.00% until Janua~ 2002. D~W ,: $147,750.00[ 07/20/2000 ] D~W $38,359.53 I 01/1~2002 [ TOT~ $186~109.53 ] Loan calculatio~ are based on a 350-da¥ year of twelve 30-day months. · '"-: DRINKING WATER STATE REVOLVING FUND LOAN AGREEMENT 00-65120-033 TRACYTON WATER DISTRICT ~ART I: ENTIRE AGREEIVIENT This agreement, and incorporated attachments, contains all terms and conditions agreed to by the PUBLIC WORKS BOARD and the BORROWER, and no other statements or representations written or oral, shall be deemed a par~ tbere~£ This contract consists of nine pages and :five attachments. ATTACHMENT I: SCOPE OF WORK, consists of a description of local project activities, certification of the prqject's useful life, and identification of estimated project costs and fund sources and is, by this reference, incorporated into this agreement as though set fol~h fully herein, ht addition, ATTACHMENT II: ATTORNEY'S CERTIFICATION, ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS, ATTACHMENT IV: SMALL AND DISADVANTAGED BUSINESS UTILIZATION REQUrREMENTS, and A'I'-I'ACHMENT V: CERTIFICATION REGAI~DrNG DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY' MATTERS, are by this reference incorporated into this agreemenf. The PUBLIC WORKS BOARD and the BORROWER have executed this agreement as of the date and year last written below. DEPARTMENT OF COMMUNITY, BORROWER TRADE AND ECONOMIC DEVELOPMENT ~_ f~./,,<~Z./_// Steve Wells l~amc ~ ' Dlrectgl~ Local Government Division ~'~ '~ Title ' T~tle Date Date ? APPROVED AS TO FORM ONLY IOt__h Day of A~ril, 2001 Christine O. Gregofie Attorney General By Jeanne A. Cushman Assistant Attorney General Federal Taxpayer Identification Number Page l Exhibit F SR~ PART II: INTRODUCTION This loan agreement is made and entered into by and between the PUBLIC WORKS BOARD, (or its successor), a department of the state of Washington~ and Tracyton Water D/strict (referred to as the "BORROWER"). Acting under the authority of RCW 70.119A. 170 and 43.155.040, the BOARD has selected the BORROWER to receive a Drinldng Water State Revolving Fund loan for an approved project. The BORROWER will be a sub- recipient of funds provided by the United States Environmental Protection Agency, CFDA Number 66.468, Title: Safe Drinking Water State Revolving Fund, award year' 2000. PART III: PURPOSE The BOARD and the BORROWER have entered into this agreement to undertake a local project which furthers the goals and objectives of the Washington State Drinking Water State Revolving Loan Fund Program. The project will be undertaken by the BORROWER and will include the activities described in ATTACHMENT I: SCOPE OF WORK. The assisted project must be undertaken in accordance witlr PART IV: TERMS AND CONDITIONS and all applicable federal, state and local laws and ordinances, including but not limited to those specifically enumerated in ATTACHMENT III. PART IV: TERMS AND CONDITIONS The parties to this agreement agree as tbllows: 4.01 Rate and Term of Loan The BOARD, using funds received from tile Drinking Water Assistance Account, shall loan the BORROWER a sum not to exceed Three Million Eight Thousand Four Hundred Ninety Dollars ($3,008,490). The interest rate shall be Two and One Half Pement (2.5%) per annum on the outstanding principal balance The term of the loan shall not exceed Twenty (20) years, with the final payment due October I, 2021. 40_2 Disbursement. of Loan Proceeds and .Required Documentation Warrants shall be issued to the BORROWER for payment of allowable expenses incurred by the BORROWER while undertaking and administering approved project activities in accordance with ATTACHMENT I: SCOPE OF WORK. The total Drinking Water State Revolving Fund Loan shall not exceed One Hundred Percent (100%) of the eligible actual project costs The loan funds will be disbursed to the BORROWER as follows: The disbursement of loan proceeds shall be in~tiated by the BORROWER on a Washington State Invoice Voucher form. Ail expenses must hav4 been incurred by the BORROWER at the time of voucher submittal. Disbursement requests must be supported by bills or receipts as evidence that costs have beeh incurred. Expenses incurred after February 13, 2001, are eligible for reimbursement. A loan fee will be assessed in the following manner: Page The first reqUe~.t for reimbursement shall include an amount equal to 2% ofthc initial loan amount. This entire ana6uni iS non-/'efundable, regardless of the actual final loan amount. If the total loan amount is increased through an amendment, an additional loan fee equal to 2% of the additional loan amount will be assessed at' contract close-out. In no case shall loan funds b~ disbursed for construction activities until the following conditions'have been met: · The BORROWER issues a Notice to Proceed which ibllows the £ormal award of a construct/on contract; · The BORROWER has completed the State Enviromncntal Review Process; · Thc Washington State Department of Health (DOH) has approved a project report and related construction documents for all applicable activities described in Al. fACHMENT I: SCOPE OF WORK. · The project includes installation of source meters, if applicable, per WAC 246-290 At thc time of project completion, a Close-out report (refer to section 4.10 for Close-out Report) shall be submitted to the BOARD by the BORROWER certifying total actual project costs. The Close-ont Report shall include a copy of the Certification of Construction Foml fi-om the Washington State Department of Health. 'File final Drinking Water State Revolving Fund loan disbursement for project activities shall not bring the total loan in excess of One Hundred Percent (100%) of tile eligible project oosts. The Close-out Report shaI1 serve as a contract AMENDMENT for detenniuing the final loan amount 4.03 Time of performance The BORROWER shall begin the activities identified within A2-I'AClq'MENT l: SCOPE OF WORK no later than ninety (90) days after loan agreement execution, and reach project completion no later than thirty-six (36) months after the date of agreement execution. Failure to perfoma within the time frame described in lhe preceding paragraph may constitute default of this agreement and require the immediate repayment of any loan funds disbursed. In the event of extenuating circm:astances, the BOt~ROWER may request, m writing, that the BOARD extend the deadline for project completion. The BOA1LD may, by a two-thirds vote, extend the time of completion. The term of this agreement shall be ~br the entire ten~ of the loan, irrekpective of actual project completion, unless temlinated sooner as provided herein. 4.04 Historical and Cultural Artifacts The BORROWER agrees that if historical or cultural arti facts are discovered during construction, the BORROWER shall immediately stop construction and notify the local historical preservation officer and the state's historical preservation officer at the Washington State Office of ,q'cheology and Historic Preservation. The BORROWER shall require this provision to be contained in all'cot/tracts for work or services related to A'FFACHMENT 1: SCOPE OF WORK. 4 05 Repaymeg.t The first loan repayment under this agreement is due October 1, 2002, and subsequent installments are due on October 1 of each year during tile teml of the loan. The first repayment under this aga~eement shall consist of Page 3 I t SRF Loan Agreement Municipal interest only at the rate of Two and One Half Percent (2.5%) per annum~ calculated on a 360-day year of twelve 30-day months, applied to funds received. Interest will begin to accrue from the date each warrant is issued. Subsequent repayments shall consist of the principal due divided by the loan term remaining plus interest on the' · unpaid balance oft.he loan. The final payment shall be an amount sufficient to bring the loan balance to zero. The BORROWER has the right to repay the unpaid balance of the loan in full at any time, and the rlght to repay at a faster rate than is provided in this agreement, provided that any such payment must equal or exceed the principal amount normally due on an annual basis. The BORROWER will repay the loan itl accordance with the preceding conditious through the use of a check, money ruder, or equivale~t means made payable to the Department of Community, Trade and Economic Development, or its successor, and sent to: Department of Community, Trade and Economic Development Administrative Services Divisiow'Fiscal Unit 906 Columbia Street SW P.O. Box 48300 Olympia, Washington 98504-8300 4__06 Repa-oneot Account The BORROWER shall repay the loan solely fi~om utility revenues, general obligation f/~vsnues/or a~, combination thereof. The name of the fired, account~ or sub-account shall be ~ ~O ff_-._/O..~ ~/~, ~-]'2,~p_.~--tt~ 4~07 Default in Rep~v_me~_~2 Loan repayments shall be made on the loan ill accordance with Section 4.05 of this agreement. A payl~er~t r, ot ieceived within thirty (30) days or'the due date shall bo declared delinquent Delinquent payments shall be assessed a daily peua!t? beginning on the thirty-first (3 l) day past the due date The penalty will be assessed on the entire payment amount. Thc peualty will be twelve percent (12%) per anmlm calculated on a 360-day year. Upon default in the payment of any annual installment, the BOARD may declare the entire remaining balance of the loan, together with interest accrued, immediately due and payable. Failure to exercise its option with respect to any such repa3a~cnt in default shall not constitute a waiver by tile BOARD to exercise such option for any succeeding installment payment which may then be in default. The BORROWER shall pay the costs and reasonable legal fees incurred by tile BOAILD in any action undertaken to enforce its rights under this section. Page Tbs'BoRRoWER must s~lect one of the following options for securing repayment of the loan. ]Please initial the appropriate option. 1. __ General Obligation: This loan is a general obligation of the BORROWER. 2. Revenue Obligation: This option may be used only if the entire project is a domestic water project This loan is a revenue obligation of the BORROWER payable solely from the net revenue of the utility system indicated below. Payments shall be made fi.om the net revenue of the utility after the payment of the principal and knterest on any revenue bonds, notes, warrants or other obligations of the utility having a l_.ien on that net revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance ahd operations. The BOARD grants the BO'R. ROWER the right to issue future bonds and notes that constitute a lien and cha~ge on net revenue superior to the lien and charge of this loan agreement. If selecting the revenue obligation, please choose and initial one of the following utility systems: _ ~t/~ Water Combined Water Utility (Water/Sewer; Water/Sewer/Irrigation; etc.) OR 3. Local Improvement District: ]'his loan is payable from special assessments collected from a Local Improvement District, Local Utility District or any other similar special assessment district created for the purpose of making the improvements financed by this loan. The name of the special assessment district is Nothing in this section shall absolve the BORROWER of its obligation to make loan repayments when due, and to adjust rates, fees, or surcharges, ifnecessaw, to meet its obligations under this agreement. 4.09 Project Completion The BOARD will require and notify the BORROWER to initiate a Close-oat Report when the acfiv/ties identified in ATTACHMENT I: SCOPE OF WORK are completed. In the report, the BORROWER wiI1 provide the following information to the BOARD: 1. A description of the actual work performed,.in addition to a certified statement of the actual dollar amounts spent, fi.om all fund som, ces, in completing the project as described. 2. Certification that all costs associated with the project have been incurred. Costs are incurred when goods and services are received and/or contract work is performed Page 5 3. Copy ofCe~ification of Conslxuction Form fi'om the Washington State Department of Health. 4.10 Final Draw and Close-out gequirements At the time of project completion, the BORROWER shall submit a Close-out Report to the BOARD. The Close-out Report shall serve as a contract amendment for determining the final loan amount. The BOARD shall provide the Close-out Report form to the BORROWER.. 4.11 Recordkeepi~J~ and Access to Records The BOARD, the BOARD's agents, and duly authorized officials of the State and Federal governments shall have fifll access and the right to examine, copy, excerpt, or transclsbe any pe~linent documents, papers, records, and books of the BORROWER and of persons, firms, or organizations with which the BORROWER may contract, involving transactions related to this project and this agreement. The BORROWER. agrees to retain these records for a period of six years fi'om the date that the debt was retired. 4.12 Reports The BORROWER, at such times and on such fot~r~s as the BOARD may require, shall furnish the BOARD with such periodic reports as it may reqnest pertaining to thc activities undertaken pursuant to this agreement including, but not limited to, quarterly progress rcpo~ts, MWBE status, the Close-out Report, and any other matters covered by this agreement. Failure to file periodic reports as requested may result in termination of this agreement aS per Section 4.16. 4.13 Indemnification [t is nnderstood and agreed that this Agreement is solely fbr the benefit of the parties to the Agreement and g/yes no right to any other party. The BORROWER agrees that the BOAiLD is acting only as lender and is not directing or controlling its business as a manager, pm'trier, owner, principal, or any ether capacity. It is understood and agreed that no joit~t vcnlure or partnership is [brined as a result et- this Agreement. Each party hereto agrees to be responsible and assume liability fbr its own negligent acts or omissions, or these o fits officers, agents, or employees to the fullest allowed required by law, and aba'ecs to save, indemnify, defend and hold the other patties harmless fi'om any such liability. In the case ofnegligeuce of more than one party, any damages allowed shall be levied in proportion to the percentage of negligence attzibutable to each party; and each party shall have the right to seek contribution from each of the other parties in proportion to the percentage of negligence attributed to each of the other parties. 4.14 Amendments, Modifications, and Waivers The BORI~OWER may request an amendment of this agreement for the propose of modifying the SCOPE OF WORK or for extending the time of per~brmance as provided for in Section 4.03. No modification or amendment resulting in an exteusion of time shall take effect t!nti! a request in writing has been received and approved by the BOARD in accordance"with Section 4.03. No amendment or modification shall take effect until approved in writing by both the BOARD and the BORROWER and attached hereto. No conditions or provisions of this agreement may be waived unless approved by the BOARD in whting. 4.1~5 Terr~fination for Cause , If the BORROWER fails to comply with the terms of this agreement, or fails to use the loan proceeds only for those activities identified in ATTACHMENT I: SCOPE OF WORK, the BOARD may terminate the agreement in whole or in part at any time. The BOARD shall promptly notify the BORROWER in writing of its determination to terminate, the reason for such terminatinn, and the effective date of the termination. Upon termination of the loan agreement, the BOAf~D may declare the entire remaining balancu of the loan, together with any interest accrued, immediately tine and payable. ~16 TermiRatign for Convenience The BOAJ.~.D may terminate this agreement in the event that fedmal or state funds are no longer available to the BOARD, or are not allocated for the purpose of meeting the BOARD'S obligations under this agreement. Termination will be effective when the BOARD sends written notice of termination to the BORROWER. 4.17 Governing; Law and Venue This agreement shall be construed and enforced in accordance with, and thc validity and perfon~nance hereof shall be governed by, the laws of the state of Washington. Venue of any suit between the part/es tossing out of this agreement shall be the Superior Court of Thurstm~ County, Washington. The prevailing party is entitled to recover costs in accordance w~t~a Wasl~ington 3tate Law (Chapter 4.84 RCW). 4.18 SeverabiliW If any provision under this agreement or it~ application to any person or circumstances is held invalid by any com~ of rightful jurisdiction, this invalidity does not affect other provisions of the agxecrnent which can bc g~ven effect without the invalid provision. 4.19 Audit Audits of the BORROWER'S project activities may bc cond ucled by the Office of the State Auditor Audit costs are eligible project costs The BORROWER shall maintain its records and accounts so as to facilitate the audit requirements of the Department of Community, Trade and Economic Development, or its successor. The BORROWER is responsible for any audit excepttons mcun'ed by its own organization. The BOARD reserves thc right to recover fi:om the BORROWER all disallowed costs resulting from the audit BORROWERS expending $300,000 or more in any fiscal year in federal fiands t¥om all sources, direct and indirect, are required to have aa audit conducted in accordance with Office of Management and Budget (OMB) Revised Circular A-133 "Audit~ of Institutions of Highe? Education and Other Nma-Profit Institutions." BORROWERS expending less than $300,000 or more in any fiscal year in federal funds from all sources, indirect and direct, may have audits conducted by the O ['flee of State Auditor (OSA) on the nom~al cycle used by OSA. Page 4=~_20 project Monitoring and lnspeclio_.n The BOARD and the Washington State Department of Health reserve the right to enter the premises during business hours to monitor project actisdties tN'oughout the contract period to assess progress, review expenditures and documentation, to review files, and'to inspect the system throughout the period of the Agreement. 4.21 Project Signs If the BORROWER displays, during the period covered by this agreement, signs or mm'kers identifying those agencies participating financially in the approved project, the sign or marker must identi~ the Washington State Public Works Board Drinking Water State Revolving Fund, and the Washington State Department of Health, as participants in the project. 4.22 Utilization o£Minority and Women Business Enterprises (MWBE) As mandated by the U.S. Environmental Protection Agency, The BORROWER is required to follow the steps identified in ATTACHMENT IV: SMALL AND DISADVANTAGED BUSINESS UTILIZATION REQUIREMENTS. The BORROWER is required to furnish the BOARD with such periodic reporls as it may request pe~'taining to the utilization of disadvantaged businesses. The goals for the utilization of disadvantaged businesses are stated below. Const~action 10% MBE 6% WBE I~EEquipment } l 0% MBE 6% WBE Purchased Services [ 10% MBE 4 23 Utilization of Small Business N Rural Areas (SBRA). The BORROWER is reqtlired to [bllow the steps identified in A'tTACI-IMENT IV: SMALL AND DISADVANTAOED BUSINESS UTILIZATK)N REQUIREMENTS. The "Fair Share" percentage for SBRAs is 0.5%. 424 .Nondiscrimination Provision During the performance of this contract, the BORROWER shall comply with all federal and state nondiscl'imination laws, including, but not limited to Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA). In the event of the BORROWER'S noncompliance or refusal to comply with any applicable nondiscrimination law, regnlation, or policy, tl~is contract may be rescinded, canceled, or terminated in whole or in part, and the BORROWER may be declared iqeligible for furlher contracts with the BOARD. The BORROWER shall, however, be given a reasonable time in which to cure this noncompliance. 425 Transfer ol:'Ownership During the term of this loan, any change in ownership of the water system(s) improved with funds received by the BORROWER under this loan agreement must be appro'ved in writing by the BOARD. As a condition of approval, the BOAILD reserves the right to demand payment in Rdl of the outstanding principal balance of the loan. PART V: SPECIAL ASSURANCES The BORROWER assures compliance with all applicable federal, state and local laws, requirements, and ordinances as they pex~aiu to the design, implementation, and administration of the approved project. Of particular importance are the following: ~.01 Bidding Requirements The BORROWER shall comply with the provisions of RCW 43.155.060 regarding competitive bidding requiremen~ for projects assisted in whole or in part wifla money from the Drinking Water State Revolving Fund program. 5._~02 Eligible Proieet Costs The BORROWER assures compliance with WAC 399-30-030(3) which identifies eligible costs for projects assisted with this loan. ~ ~-~-'~ o. ~ < ¢1 5.03 Prevailing Wage The BORROWER assures compliance with the prevailing wage laws of the Washington $~ate Public Works Act, Chapter 39.12 RCW. 5.04 Federal and State Require ~e ~ts The BORROWER assures compliance with ali applicable Federal aod State rcqmrements, including but not limited to those listed in Attachment I1.I and IV. 505 Suspension and Debarmeut The BOI~ROWER certifies it is uot presently suspended or debarred fi:o~'a receiving federal fi.t~.ds The BOItJ~.OWER has satisfactorily completed the liPA Certification contained m Attachment V: Certification Regarding Debamaent, Suspension, and Other Responsibility Matters. The BORROWER shall reqoire'all contractors and subcontractors receiving contracts ors100,000 or more for work listed in Attachment I; Scope of Work, to certity that the federal government has not suspended or debarred them from receiv ng federal funds. Suspension and debarment certification forms shall be provided by the BOARD. The BORROWER agrees to keep debamaent and suspension documentation on file in project records. 5.06 No Waiver Waiver of any covenant, term, or condit!.on of this Agreement by. any party shall not be deemed a waiver of any subsequent breach of the same covenant, tema, or condition. No waiver of any default or breach by any party shall be implied from any failure to take action upon such default or breach, if the default of breach persists or repeats. Page 9 ( 0~,~ SRF Loan Agreement Municipal Systems DRINKING WATER STATE REVOLVING FUND ATTACHMENT h SCOPE OF WORK LOAN NUMBER 00-65120-033 TRACYTON WATER DISTRICT (Recipient) WATER DISTRICT UPGRADE (CONNECTION TO BREMERTON). (Project Title) 1. Provide a dear description of the project to be financed in part by a Drinking Water State Revolving Fund loan. (Attach additional sheets if necessary): The Pr~ect invol~,es the installation of ~pproximateIy 29 000 hneal feet of ductile iron water pipe. 2 pressure reducing valve vaults, §0 fire hydrants, 13 connections to the existing water system, 6 air vacuum release assemblies, 4 blow-off assemblies, 289 service connections and all surface restoration. 2. The term of this loan w!ll be based on an engineer's certification of the expected usefu! !{fo of the improVements~ as stated below, or 20 years, whichever is less If the recipient prefi~rs the term of its loan to be less than either 20 years or the usefu~ life of the improvements, the preferred loan term should be indicated: 20 .years. 3. 1, Thomas E. Knuckey , licensed enginee,r, certify that the average expected useful life for the improvements described above is 20 years. Signed; Telephone: '-' (360) 478-7976 Sco'P~ o~.W~'rk, DWSRF. Eoan Agreement Number d~65120-033' Page Two _Est mated Proiect Costs: 7' Preliminary Engineering $ Completed Design Engineering $ 220,000 ¢ ~ Bid Document Preparation $ Land/Right-Of-Way Acquisition $ Sales or Use Taxes $ Other Fees $. Construction Inspection $ 72,000 ~.7,rl~q. ici Start-up Costs' $ Relocation Costs $ Financing Costs $ Audit Costs $. Construction $ 2 657 500 1~5c~, ~O"l.ci ~, Contingency ( %) $ Other (Specify) $ Other (Specify) $ TOTAL ESTIMATED PROJECT COSTS $ _ 2,949,500I~ (¢ ~l~ ~ 32.t ~ I, ~ c~G~, ~.~ Anticipated Fundinq Sources' .5 6, ~/o H ul ~c~ A. Federal Grants $ State Grants $ B. Locally Oenerated Revenue _ . Capital Reserves $ Water Rates Assessments (LID, RID, ULID) $ Special Levies $ Federal Loan(s) from: (identify all) $ $ State LoaD(s) from: (identify all) $ $ Other: (identify sources) $ $ TOTAL ANTICIPATED FUNDING $ $ SOURCES 2,949,500 DWSRF Loan C. DWSRF CONSTRUCTION LOAN (for project costs) $ 2,949.500 DWSRF LOAN FEE (2% of construction loan $ 58,990 TOTAL DWSRF LOAN $ 3,008,490 ....... ~3~o~oq,~0 Drinking Water State Revolving Fund " ATTACHMENT Ih ATTORNEY'S CERTIFICATION I am an attorney at law admiited to practice in the State of Washington and the duly appointed (the BORROWER); and I have also examined any and all documents and records which are pedJnent to the loan agreement, inciudlng the application requesting this financial assistance, Based on the foregoing, it is my opinion that: The BORROWER is a public body, properly constituted and operating under the laws of the State of Washington, empowered to receive and expend federal, state and local funds, to con~ract with the State of Washington, and to receive and expend the fonds involved to accomplish the objectives set fodh in their application. The BORROWER is empowered to accept the Drinking Water State Revolving Fund financial assistance and to provide for repayment of the loan as set forth in the loan agreement. 3 There is currently no litigation in existence seekiCg to enjoin the commencement or completion of the above-described public facilities project or to enjoin the BORROWER from repaying the Drinking Water State Revolving Fund loan extended by the DEPARTMENT with respect to such project. The BORROWER is not a party to litigation which will materiatly affect its ability to repay such 10an on the terms contained in the loan agreement. 4. Assumption of this obligation would not exceed statutory and administrative rule debt ons~ the BORROWER. Signature of Attorney Date Name Address / / ob Attachmcn! Ill Federal and State Requirements 1) Exl¥ironmcmlt:d a) Archeological ,.llmd l list{,'ic Prcscrv;!lioll :Ici oX: 1974. Public I,aw 86-523 as amended b') C:]can Air Act, I'ubhc I.a~ 84-159 us umc~ded c) C~astal ttm'ricr lic~,mrccs ~ct. l'uh]/c I,aw ~12-5a3 ;~s alllclldcd d) lilldallgcrcd Sl~CCics ,Net. I'u~lic I.axv 93-205 Js amended c) Etlvirunwcm;H .JusOcc. [~xcculivc O:'dcr 12S9$ l?Io{~dplam MamJgcmoii. I:xccLlti~ c {)Idcr J I9_t,1 ;*s :tmcndcd I~y }Lxcculivc Order 12148 g) Protect/on q)l' ~VctJ:ltldS, I~.XCCBIJvc h) I":,'lulu,d Pl'~tccli~m Policy :XcI. I'ui>iic I.aw 97-98 i) Fish ~lml W/kllit'c ('~>ot'dimtl/un Act. Public l,:tw 85-024 ~s amcmicd c) l.tnil~)rIn Rc],~':lthm a) A~c Di~crimi,atton/~ct o1'1975. Puldic l.aw 94-135 02-5Oa (thc ('lean ~Vatcr ()rdcrs 119}4 am] I c) I{tlUa] )~ml)lo>mcnt ()pp(~rtu:~ity. I':xccutt~c ()rdcr 112.16 Women's and Mimmty busmc>s }~l~icip:isc. l{~ccut~vc Orders 11625, 12138and 12432 S) Section ) 29 of thc Small Itusmcss Adm/uis~ratm~ Rcaulhm'ization ami Amendment Act or' 1988. l>ullhc Law 10U-590 Pag¢l [07 A~achment 111 4) State Laws a) Chapter 36.70A RL'\V. Growth Mm~agcmcnl Act b) C]taptcr 39.80 R(]W, Contracts tbr Architectural and Engineering Scr~ icc. s c) L'haptm- Y). 12 R('W. ~Vash/ngton Sta~e Public Works Act d) Chapto'43.20 RCW, State Board of Ilcallh c) Chapter 43.70 14CW, Dcp;u'tmcnt of Jlcalth 0 ('haptcr 70 116 RCW, Public Walcr SyStems {.7oordinatloll Acl ~t- 1977 g) Chapter 70. I 19 R( 'W, Public Water Supply 5) stems ('crti tic:llmn and Rcgulaliou of ( h) Chaplet 70.119..k RCW. Public Walo- i) ("haptcr 246-2q0 WA('. (;rmtp A Public Walcr S).slcms j) Chapter 246-201 WA(', (;roup H Pahlic Water k) ('haplcr 240-292 W.X(', Walcr~xo:'ks Opcralor (M'tificatmn Rcgulalions 1) (. haptcr 2-16-293 WA( ', Water Sy~Icms Uomdinalim~ Act u0 ('hal~t,tr 2,16-294 WAC. l)rinking Wa',cr ()pct';tling Pcm~its n} ('hapt,:r 24h-295 WA('. 5ah:lli~c Ny-tom k'lanagcmcnl p) lille 1/3 W..M'. I)cp;ulmcnt ~l'lico]ugy Attachment IV SMALL AND DISADVANTAGED BIJSINE SS UTILIZATION REQUIREMENTS Affirmative steps shall include: 1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists~; 2. Assuring fl~at sraall and minority businesses, and women's business enterprises are solicited whenever they are potential sources; 3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to penult maximum participation by small and minority bnsiness, and women's business enterprises; ~-. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women's business enterprises; 5. Using the services and assistance of the Small Business Administration, and /he Minority Business Development Agency of the Departmeut of Commerce; and 6. Reqoiring the prime contractor, it' subcontracts are to bc let, to take the. 5 affirmative steps listed above. i Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.qov or by contacting the Washington State Office of Minority and Women's Enterprises at 360-70z~-1181. 0! actm KqRF~S t x w Con r ' g ' RF i'.A Attachmen s D SKF Attach IV.doc I.~ted St~es ~'~mementld Preteen Agency Certification Regarding Debarment, Suspension, 'and Other Responsibility Matters The p~ospective participant certifies to the best of Its knowiedge and belief that It and Its prlndpal$: (a) Are not presentJy debarred suspende~, proposed for debarment, declared In~ltglbte, or volunz'an'ly excluded from coverall tran~a~tlorl~ by any Federal depar~mem or agency; (b) Have not wlthtrl a three year period preceding th s prepas~ been c0mficted of Or had a cl~[l-judge~ent rendered against them .for COmmission of fraud or a cftmlr~l offense In connection with obtaining. attempting t~ obtain, or performlog a public (F~eraJ, State, or oral} trarls~ctlon or contract under-a public transaction; violation of Federal or St~.te sntltrust statuzes. Or commission of embezzJement. theft, forge~,, bdben/, falsl~cation or destruction of records, making raise statement~, or receiving stol~n property; · (c) Are nat presentJy indicted for or othen~Jse criminally or civil y ch~.rged by a government ent~ (Federal. State, or local) with commission of arty of the offenses enumerated In paragraph (1)(b/ of this cart f cat,on; and ' ' ' , , (d) .HaVe ~.ot wi,thin a three-year p. eriod preceding this application/proposal had one er more public transaction9 (.Pederal. State. or local) terminated for c~U se or d~f~ult I understand that a false statement on this cer[ificat[0n may be grounds for rejection o~ this proposal or termination of the award. In addition, under t8 USC Sec. 1[301, a false statement may result in a fine of up ~a $10.000 or imprlsonmenL for up to 5 years, or beth. GARY KEENAN, COMMISSIONER ~] { am unable to certify to the above statements. My explan~llon i~ a~a~hed EPA Form S~r00-4g EXHIBIT G [Legal Description of Watershed Property] The Southwest Quarter of the Northwest Quarter of Section 2, Township 24 North, Range 1 East, W.M. in Kitsap County, Washington; except the following described property: beginning at the Northwest comer of said Section; thence South 2° 57' 05" West, 2,778.15 feet to the West Quarter Comer of said Section; thence North 89° 58' 24" East, 560 feet; thence North 2° 57' 05" East, 400 feet to the Point of Beginning; thence continuing North 2° 57' 05" East, 220 feet; thence South 89° 58' 24" West, 220 feet; thence South 2° 57' 05" West, 220 feet; thence East to the Point of Beginning. Together with and Subject to easements. Situate in Kitsap County, Washington. Also known as Kitsap County Assessor's Tax Parcel No. 022401-2-003-2008. Exhibit G EXHIBIT H [Assets to be retained by the Tracyton Water District] 1) The District's Community Hall identified as follows; Address: 4990 Tracyton Blvd., Tracyton, Wa. Tax Parcel Number: 4474-014-015-0003. Legal Description: Lot 15, Block 14, First addition to Tracyton, according to Volume 1 of Plats, page 37, records of Kitsap County, Washington. 2) Street lighting system in the franchise area. 3) Tail insurance policy as evidenced by the attachment to this exhibit and identified as Exhibit H- 1. 4) Cash and financial accounts as follows: All Tracyton Water District ("District") cash and other financial accounts currently of record to assist in the dissolution of the District; provided, however, that upon the official dissolution date of the District, or as soon as practical thereafter, the cash and balance of funds remaining in all of said District accounts shall be conveyed to the City of Bremerton and become its sole property. 5) Other property as follows: the Districts Compaq computer and printer, the District's 4- drawer filing cabinet, and the District's records which property will be conveyed to the Port of Tracyton at a subsequent per the District's prior agreement with the port. Exhibit H EXHIBIT I Return Address: City Clerk City of Bremerton 239 Fourth Street Bmmerton, WA 98337 AUDITOR/RECORDER'S INDEXING FORM Document Title(s): 1. Statutory Warranty Deed Reference Number(s) of Documents assigned or released: Grantor(s): 1, TracytonWater District [] Additional names on page of document. Grantee(s): 1. CityofBremerton [] Additional names on page of document. Legal Description: SW ¼ NW ¼ 82 T24N R1E (abbreviated) [] Additional legal is on 2 of document. Assessor's Property Tax Parcel/Account Number: 022401-2-003-2008 STATUTORY WARRANTY DEED Tracyton Water District, ("Grantor"), a corporation, for and in consideration of mutual benefits derived and/or other valuable consideration receipt of which is hereby acknowledged by Grantor, conveys and warrants to the City of Bremerton, a Washington municipal corporation ("Grantee"), the following described real property situated in Kitsap County, State of Washington. The Southwest Quarter of the Northwest Quarter of Section 2, Township 24 North, Range 1 East, W.M. in Kitsap County, Washington; except the following described property: beginning at the Northwest corner of said Section; thence South 2° 57' 05" West, 2,778.15 feet to the West Quarter Corner of said Section; thence North 89° 58' 24" East, 560 feet; thence North 2° 57' 05" East, 400 feet to the Point of Beginning; thence continuing North 2° 57' 05" East, 220 £eet; thence South 89° 58' 24" West, Exhibit I 220 feet; thence South 2° 57' 05" West, 220 feet; thence East to the Point of Beginning. Together with and Subject to easements. Subject to covenants, conditions, restrictions, reservations of rights, and easements of record, if any, affecting title, including those shown on any recorded plat or survey. DATED this day of ,2003. GRANTOR: TRACYTON WATER DISTRICT By: Its: STATE OF WASHINGTON ) COUNTY OF KITSAP ) On this day of ,2003, before me a Notary Public in and for the State of Washington, personally appeared , to me known to be the of Tracyton Water District, a corporation, that executed the foregoing instrument, and acknowledged it to be the free and voluntary act of said corporation, for the uses and purposes mentioned in this instrument, and on oath stated that he was authorized to execute said instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attorney Exhibit 'J' TRACYTON WATER DISTRICT z Tracyton Water Dis DYES INLET ~'~/~ Tracyton Water Distnct 1 inch equals 1,600 feet Exhibit J Return Address: Attn: City Clerk City of Bmmerton 239 Fourth Street Bremerton, WA 98337 AUDITOR/RECORDER'S INDEXING FORM Document Title(s): 1. Memorandum of Interlocal Agreement Reference Number(s) of Documents assigned or released: Grantor(s): 1. Tracyton Water District [] Additional names on page of document. Grantee(s): t. City of Bremerton [] Additional names on page of document. Legal Description: N/A abbreviated) [] Additional legal is on page of document. Assessor's Property Tax Parcel/Account Number: N/A MEMORANDUM OF INTERLOCAL AGREEMENT This Memorandum of Interlocal Agreement is entered into on the date fully executed below, by and between the City of Bremerton, a Washington municipal corporation (hereinafter referred to as "City") and Tracyton Water District (hereinafter referred to as "District"). Pursuant to RCW 35.13A.070, Chapter 39.33 RCW, the Intergovemmental Disposition of Property Act, and Chapter 39.34 RCW, the Interlocal Cooperation Act, the District and City entered into an agreement entitled "Interlocal Agreement Between the City of Bremerton and Tracyton Water District for Assumption of Rights, Powers, Duties, Obligations and Transfer of Assets of Water District" on ,2003, to convey and deed to the City all of the District's interest in assets including title to certain real property and Facilities and assets of the District as set forth in said agreement and the City agreed to assume all rights, duties, powers and obligations of the District, including loan obligations. MEMORANDUM OF INTERLOCAL AGREEMENT - I Exhibit K IN WITNESS WHEREOF, the parties have executed this Memorandum of Interlocal Agreement. CITY OF BREMERTON TRACYTON WATER DISTRICT By: By: Print Name: Cary Bozeman Print Name: Its: Mayor Its: DATE: DATE: STATE OF WASHINGTON SS. COUNTY OF KITSAP I hereby certify that I know or have satisfactory evidence that Cary Bozeman is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument on behalf of the City of Bmmerton as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Mu*t Appear Within This Box- 1N WITNESS WHEREOF, I have hereunto set my hand and official seal this __ day of ,2002. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires MEMORANDUM OF INTERLOCAL AGREEMENT - 2 STATE OF WASHINGTON ) : SS. COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the Tracyton Water District as its , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within T~is Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal this __ day of ., 200'). NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attomey R:~LEGALXFiles\Current Active Files\Tmcyton Water DistricthMemomndum of Agreement.doc MEMORANDUM OF INTERLOCAL AGREEMENT - 3 DATE SUBMITTED: November 12, 2003 BILL # 0t~ -' O [ AGENDA BILL CITY OF BREMERTON ~ A CITY COUNCIL SUBJECT: PUBLIC HEARiNG ON Committee Meeting Date: January 20, 2004 ORDiNANCE AMENDiNG BMC COUNCIL MEETING Date: Jan. 2'~& Feb. 11, 2004 21.02.150, UNLISTED USES AND BMC Department: City Attorney's Office 21.02.070, DEFiNITIONS Presenter: Roger A. Lubovich Phone: 473-2345 SUMMARY: The current provisions of BMC 21.02.150 do not provide adequate criteria for reviewing and considering applications for Unlisted Uses that are not listed in Figures 120 and 140 of the zoning code, Chapter 21.02 BMC, as allowable uses by zones in the City. The proposed ordinance amends BMC 21.02.150 to provide criteria for review and consideration of applications for unlisted uses, and makes minor technical corrections to Section 21.02.070, Definitions, relating to Lot Line, Front and Lot Line, Rear. ATTACHMENTS: Proposed Ordinance. FISCAL IMPACTS (Include Budgeted Amount): None APPROVALS: , DEPARTMENT DIRECTOR: ~ ~ :~ ,', ,'~ it; CITY ATTORNEY: ..~ '~'.7;~; _ /~.. FiNANCE DIRECTOR: '~ t ~ OPE TIO S: ) I, - RECOMMENDED MOTION: 1. I move to approve the proposed ordinance on first reading. 2. I move to pass Ordinance No. on second reading. COUNCIL ACTION: [] Approve [] Deny [] Table [~ [] Continue [] No Action ORDINANCE NO. AN ORDINANCE of thc City Council of thc City of Brcmcrton, Washington, relating to land usc and zoning, amending thc zoning code by amending Section 21.02.150 of the Bremerton Municipal Code relating to unclassified uses (Unlisted Uses) to establish thc criteria for thc Community Development Director to consider in classifying, for processing, an application of an Unlisted Usc, and further, amending Section 21.02.070 entitled "Definitions" to make technical corrections to this section by eliminating references to "Zoning Ordinance Special Exception." WHEREAS, the current provisions of Section 21.02.150 of the Bremerton Municipal Code relating to Unlisted Uses do not provide adequate criteria for reviewing and considering applications for Unlisted Uses which, pursuant to BMC 21.02.150, are not listed in Figures 120 and 140 of the zoning code, Chapter 21.02 as allowable uses by zones in the City; and WHEREAS, the City Council desires to update the provisions relating to Unlisted Uses to provide criteria for reviewing and considering applications for Unlisted Uses to provide standards for the exercise of the Community Development Director's discretion and eliminate the possibility of arbitrary decision making; and WHEREAS, the SEPA Responsible Official determined that adoption of this ordinance is categorically exempt as procedural action under WAC 197-11-800(20); and WHEREAS, on December 16, 2003, the Planning Commission held a public hearing on the proposed amendment to BMC 21.02.150 and recommended adoption of the proposal to the City Council; and WHEREAS, pursuant to RCW 36.70A.106, the City sent a copy of this Ordinance to the Office of Community, Trade and Economic Development; and WHEREAS, Section 21.02.070 of the Bremerton Municipal Code entitled "Definitions" requires minor technical corrections to eliminate references to "Zoning Ordinance Special Exception" which was eliminated from the zoning code pursuant to Ordinance No. 4798; and WHEREAS, on January 2~, 2004 and February 11, 2004, the City Council considered and held a public hearings on this Ordinance during its regular City Council meetings; and THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: 1 Unlisted Uses SECTION 1. Section 21.02.150 of the Bremerton Municipal Code entitled "Unlisted Uses" is hereby amended to read as follows: 21.02.150 UNLISTED USES. (a) The Director shall review Aan_n_ y application for a land use that is NOT listed in ~ o~-Figure 140 for the purpose of associating the proposed unlisted use with a listed use or uses usmg the following criteria (1) The proposed unlisted use and the listed use or uses shall (i) pose similar impacts on the environment for noise, light and glare, dust and odor, and water quality; (ii) present similar operational characteristics for traffic volumes, typical hours ofactivit% parking demand, delivery of supplies, and storage of materials; (iii) demonstrate similar dimensional compatibility within the zones in which the listed use or uses is/are permitted, including structures' height and bulk, lot coverage and characteristic setbacks, landscape, fences, signage, and type of structure (style and materials); and (2) There must be a clear association of the proposed unlisted use with the listed use or uses within any one ofthel4 categories of Table 140. The Director's association of an unlisted use with a listed use or uses classifies the proposed use as the listed use or uses for processing the application. classification of an unlisted use or the Director's determination that the proposed use cannot be classified and processed as any other listed use or uses ma,/be appealed to the Administrative Heating Examiner as a Type I administrative decision pursuant to BMC 21.02.840. SECTION 2. The definitions for Lot Line, Front and Lot Line, Rear contained within Section 21.02.070 of the Bremerton Municipal Code entitled "Definitions" are hereby amended to delete references to Zoning Ordinance Special Exception, which was previously deleted from the Zoning Code pursuant to Ordinance No. 4798, as follows: LOT LINE, FRONT. Any property line that abuts a public street, private street, or alley (if no street frontage) is considered a frontage and shall meet the minimum lot frontage development requirements of this code, ~ ..................... ~. .......... a-- ~-~, ............... ~, LOT LINE, REAR. The property line most opposite or most distant from the designated front lot line and that does not intersect any front lot line. Comer lots ofien have no rear lot line. In the case of a waterfront property, the rear lot line is that which adjoins the ordinary high water 2 Unlisted Uses SECTION 3. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION& Transmittal of Adopted Ordinance to State. Pursuant to RCW 36.70A. 160, the Community Development Director is directed to send a copy of the adopted version of this Ordinance to the State Office of Community, Trade and Development. SECTION 5. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of _, 2004 PASSED by the City Council the day of _, 2004 DAREN NYGREN, Council President Approved this day of ,2004 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, Interim City Clerk ROGER A. LUBOVICH, City Attomey PUBLISHED the day of ., 2004 EFFECTIVE the day of _, 2004 ORDINANCE NO. R:\LEGAL\Ordinances\Community Development\Unlisted Uses.doc Unlisted Uses DATE SUBMITTED: January 12, 2003 BILL # 0 t/... 0 I AGENDA BILL CITY OF BREMERTON 3 B CITY COUNCIL SUBJECT: PUBLIC HEARING ON Committee Meeting Date: January 20, 2004 ORDiNANCE AMENDiNG BMC COUNCIL MEETING Date: Jan. 2't& Feb. 11, 2004 21.02.152, DOWNTOWN DISTRICT Department: City Attorney's Office Presenter: Roger A. Lubovich Phone: 473-2345 SUMMARY: When the current provisions of BMC 21.02.152 were adopted a year ago, they unintentionally created nonconforming uses out of existing land-uses in the Downtown Waterfront (DW) and Downtown Core (DC) zoning districts because of off-street parking requirements. The proposed ordinance amends BMC 21.02.152 to exempt existing structures from off-street and landscaping requirements. ATTACHMENTS: (1) Proposed Ordinance; (2) Staff Report; and (3) November 18, 2003 Planning Commission Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): None APPROVALS: DEPARTMENT DIRECTOR:" CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: OPERATIONS: ~ '~. ~V-~, f~-~~ i CONSENT AGENDA [] COUNCIL PRESIDENT: RECOMMENDED MOTION: 1. I move to approve the proposed ordinance on first reading. 2. I move to pass Ordinance No. on second reading. COUNCIL ACTION: [] Approve [] Deny [] Table ~ ~ [] Continue [] No Action ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 21.02.152 of the Bremerton Municipal Code relating to Downtown District development standards. WHEREAS, the current provisions of Section 21.02.152 of the Bremerton Municipal Code relating to the Downtown Waterfront and Downtown Core zoning districts have unintentionally created nonconforming uses out of existing land-uses because of parking requirements; and WHEREAS, the City Council desires to update the provisions relating to development standards in the Downtown Waterfront and Downtown Core zones in order to reduce the amount of nonconformity and support the remodeling and reuse of existing buildings; and WHEREAS, the SEPA Responsible Official determined that this proposal will not have a probable significant adverse impact on the environment and issued on November 5, 2003, a Determination of Nonsignific ance (DNS) under WAC 197-11-340( 1 ); and WHEREAS, on November 18, 2003, the Planning Commission held a public hearing on the proposed amendment to BMC 21.02.152 and recommended adoption of the proposal to the City Council; and WHEREAS, pursuant to RCW 36.70A. 106, the Department of Community Development sent a Notice of Intent to Adopt for this Ordinance to the Washington State Office of Community, Trade and Economic Development; and WHEREAS, on January 2~, 2004 and February 11, 2004, the City Council considered and held a public hearing on this Ordinance during its regular City Council meetings; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION1. Section 21.02.152 of the Bremerton Municipal Code entitled "Downtown District" is hereby amended to read as follows: 21.02.152 DOWNTOWN DISTRICT. (a) Zones. (See Map of Zone Districts, Figure 152(a)) (1) Downtown Core (DC). (i) Purpose: To focus commercial, entertainment, cultural, civic uses and urban residential into an intense, compact, walkable area served by public transit. (ii) Allowable Uses: 1 ~ ~Downtown District Parking and Landscape a. commercial, financial, retail b. eating and drinking establishments c. general offices d. entertainment, museum, and cultural e. government and education f. residential and hotel g. religious institutions h. parks and open space i. structured parking (iii) Prohibited Uses: a. industrial uses b. drive-through uses c. motor vehicle sales, service, repair or washing d. storage of equipment and materials e. adult entertainment f. work release facilities g. commercial surface parking lots, not serving a permitted use (2) Downtown Waterfront (DW). (i) Purpose: To provide for an array of uses related to the water, multi-modal transportation facilities, view corridors, public access and residential. (ii) Allowable Uses: a. retail, including marine retail b. eating and drinking establishments c. hotel d. residential e. transportation facilities f. parks and open spaces g. structured commercial parking with other permitted use h. General offices comprising no more than 25% of the total gross floor area of a mixed use development. (iii) Prohibited Uses: a. same as downtown core, plus b. boat sales, storage and repair c. stand alone commercial parking not serving a permitted use (b) Development Standards-Table. (1) Floor Area Ratio (FAR) = (Floor area/Lot area) Base Maximum Non- Res W/Amenities District Res Non- Res Res DC 1 2 3 6 DW .5 1 I 2 Downtown District Parking and Landscape (2) Maximum Building Height DC See Figure 152(b) DW See Figure 152(b) (3) Parking (stalls/lc gsf)--(for exemnt devel0oment see BMC 21.02.152(13) Min Max DC 1 4 DW 1 3 (4) View Corridor DC N/A DW See Table 3.2 of the Shoreline Master Program Notes: 1. Floor Area Ratio (FAR) is the amount of floor area within a building as a multiple of the lot area. Floor area is measured to the inside face of the exterior building wails. Calculation of FAR can exclude the following: a. spaces below grade. b. space devoted to parking. c. mechanical spaces. d. elevator and stair shafts. e. space used for retail uses or restaurants that front the sidewalk. f. space devoted to Special Amenities. g. exterior decks open to the air. 2. The FAR for non-residential uses and residential uses within a given development are individuaily calculated for each use and may be added together for a combined maximum, provided that the maximum allowable FAR for each use is not exceeded. (Example: A project that includes Special Amenities may have a totai FAR of 6, with 2 in commerciai use and 4 in residential use.) 3. For the Downtown Core district, new development shall have a minimum FAR of 1. 4. Maximum Building Height excludes: a. parapets. b. mechanical penthouses and elevator overmns and machine rooms. c. roof forms and decorative elements not intended for occupancy. 5. The first 3,000 sf of ground floor retail uses are exempted from parking requirements. 6. For residential uses, the minimum parking requirement is .5 spaces per 1000 sf. 7. For purposes of this code, hotels shall be considered residentiai uses. (c) Design Standards ..rr ....... '~ ............ ~, ............................ (for exempt development see BMC 21.02.152(0). (1) All roof-top mechanical equipment shall be screened by either a high parapet or a stepped or sloped roof form that is a part of the architecture of the building and is at least as high as the equipment being screened. Fencing is not acceptable. (2) Street trees shall be provided with no fewer than 3 trees per 100 linear feet of frontage. Tree grates shall be used to cover the planting pits. Where existing areaways or Downtown District Parking and Landscape vaults prevent this form of planting, trees shall be planted in planters equipped with irrigation. All trees shall have a minimum caliper of 2 Y2" at the time of planting. (3) Surface parking lots, if they abut public sidewalks, shall provide a perimeter landscaping strip containing a combination of trees (with no fewer than 3 trees per 100 linear feet of frontage), and shrubs. Masonry walls no lower than 15" and no higher than 30" may be substituted for shrubs. (4) For parking lots containing more than 20 stalls, at least 15% of the interior area shall be planted with trees and shrubs. All trees shall have a minimum caliper of 2 ~6" at the time of planting. Pedestrian walkways from adjacent sidewalks shall be provided. (5) The street-facing, ground-level facades of parking garages shall be designed to screen the view of parked cars. Where commercial or residential space is not provided to accomplish this, features such as planters, decorative grilles, or works of art shall be used. (6) Any sidewalk level facade that faces any downtown street shall have at least 35% of the facade area in transparent glass windows. (7) Any facade facing a public sidewalk shall incorporate more refined materials such as stone or brick and details such as pilasters, plinths, brackets, or belt courses on at least the first floor. (8) Buildings taller than four stories shall display a distinctive design for the top of the building which can be achieved by various means including a change in materials, architectural detail, color, or step backs at the top floor, a prominent projecting cornice, or a roof with a form such as a curve, slope, or peak. (9) All development along any Primary Pedestrian Street (First, Second, Burwell, Fourth, Fifth, Pacific, and Park) shall meet the following standards: (i) Building facades shall abut the sidewalk. However, entrance areas may be recessed. Furthermore, buildings may be set back to accommodate Exterior Public Spaces conforming to the provisions in Section 21.02.152(d)(1). (ii) At least 50% of the linear, sidewalk level frontage of any structure shall consist of, or are adaptable to, retail, restaurants, cultural or entertainment uses, financial institutes, office, indoor public spaces, or art galleries. (iii) At least 75% of the frontage shall include weather protection in the form of a flat or sloped canopy, projecting at least 5 feet over the sidewalk. (d) Amenities required to achieve the Maximum Floor Area Ratio. In order for a development to achieve the maximum allowable Floor Area Ratios set forth in the Development Standards table in Section 21.02.152(b), Special Amenities must be provided. In return for incorporating any one of the three special amenity features on the following list, the maximum FAR shall be allowed. The design of each feature will be reviewed to ensure that it is appropriate for the proposed location and provides for a public benefit. (1) Exterior Public Space that is at least 10% of the site area and includes the following features: a. seating in the amount of one sitting space for each 100 sf of area. b. trees and other plantings. c. art or water feature. d. solar exposure during the summer. e. access and visibility from the nearest sidewalk. (2) Public Benefit Use consisting of at least one of the following: 4 Downtown District Parking and Landscape a. meeting room(s) available to the public. b. day care. c. museum. d. performing arts theatre. (3) Work of Art or Water Feature in a location that is visible to the public at all times. There may be more than one artwork or water feature, so long as the cost of the item(s) is equivalent to at least 1% of the building permit value for the project including site improvements. A work of art consists of an original, artist-produced creation such as: a. murals. b. sculptures. c. paintings. e. inlays. f. friezes. g. mosaics. h. tile work. (f) Change of Use or Rehabilitation of Existing Buildings. When an existing building or stmcture is remodeled or improved; or has a change in use or tenancy, it shall be exempt from off-street parking and landscaping requirements for new development including those set forth in BMC 21.02.152(c) provided that the structure is not enlarged, extended or structurally altered to allow an increase in the gross floor area. SECTION2. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2004 PASSED by the City Council the day of ,2004 DAREN NYGREN, Council President Approved this day of ,2004 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, Interim City Clerk ROGER A. LUBOVICH, City Attorney Downtown District Parking and Landscape PUBLISHED the day of ,2004 EFFECTIVE the day of ,2004 ORDINANCE NO. R :~LEGAL\Ordinances\Comm unity Development~Downtown District Parking and Landscape.doc Downtown District Parking and Landscape MEMORANDUM Department of Community Development 286 4th Street * Bremerton, WA 98337 Phone: (360) 473-5275 Fax: 060) 473-5278 DATE: October 16, 2003 TO: PLANNING COMMISSION Jessica Kennedy, Chair B. Scott Buckingham, Vice Chair John W. Cockbum Andy Kosusko Clarence Nelson Linda Streissguth, AICP Angela S. Wood FROM: Robert J. Grumbach, AICP, Current Planner SUBJECT: Agenda Item 2(a): ZONI2NG TEXT AMENDMENT BP03-00178 The Department o£ Community Development would like to initiate a text zoning code amendment to address parking issues and redevelopment standards in the downtown district zoning classifications (BMC Section 21.02.152). Background: The issue first surfaced after Calvary Chapel purchased the old Sears building at 252 Fourth Street. The building had been empty for years and the church wished to remodel the structure to house religious worship services, church offices and a day care facility. A problem arose because the building covered 100 percent o£the lot and had no associated off-street parking. The Sears parking garage had been sold separately earlier and BMC Section 21.02.670(c)(1) had previously exempted the Central Business District area from off-street parking and loading space requirements. Problem: When the City adopted BMC Section 21.02.152 establishing the new Downtown Waterfront (DW) and Downtown Core (DC) zoning districts, it reintroduced a requirement for off-street parking. Since many of the buildings in these districts do not have adequate associated off-street parking, there is a potential barrier to redevelopment o£the downtown area. The Department of Community Development is currently reviewing many of the building perm/ts for downtown buildings under BMC Section 21.02.590(d)(1), wh/ch allows the Director to waive additional parking space requirements if a building remodel or change in use does not result in a significant increase in parking demand. The difficulty is that this is very subjective and requkes any potential increase in parking demand to be minimal. Minutes for Plmming Conmxission Meeting November 18, 2003 I. Call to Order The meeting was called to order by Corrm~issioner Kennedy at 5:30 p.m. Commissioner Kennedy asked staffto introduce the new commissioner. II. Roll Call Those present were: Connnissinner Buckingham, Cormnissioner Cockburn, Commissioner Kosusko, Conunlssioner Streissguth, Commissioner Wood and Commissioner Ke~medy. Quorum certified. III. Approval of Agenda Commissioner Kennedy introduced the agenda. She announced that there had been a chmage to the agenda. Item B. 1. b. has been deleted [Public Hearing for BP03 00189 - An ordinance amending BMC 21.02.150 relating to unlisted uses.] Also, the Workshop 2. [Comprehensive Plan- Draft Transportation Element] has also been deleted. Chris Hugo made a statement, for the record that the public hearing item B. 1. b. has been deferred because of a notice issue. We had published a notice for the agenda but did not publish a separate notice like we did for item B. 1. a. that explained the fall opportunity for public comment. Since we did not follow the same protocol, the workshop is deferred because we just have too many hits on staff time and difficulty notifying everyone. A motion was made by Commissioner Kosusko and seconded by Commissioner Buckingham to approve the agenda as amended. Called for a vote: Buckingham: yes; Cockbnm: yes; Kosusko: yes; Streissguth: yes; Wood: yes; and Kennedy: yes. Agenda approved as amended. IV. Approval of Minutes The minutes of the Regular Meeting held on October 21, 2003, were presented for approval by Commissioner Kennedy. A motion was made by Commissioner Kosusko and seconded by Commissioner Streissguth to approve the minutes as written. Called for a vote: Buckingham: abstained; Cockbnrn: yes; Kosusko: yes; Streissguth: yes; Wood: yes; and Kennedy; yes. Minutes approved as written. V. Public Meeting Commissioner Kennedy moved directly to the call to the public portion. Plaraxing Commission Meeting November 18, 2003 Page 1 of 10 A. Call to the Public (public connnents on any item not on tonight's agenda). She addressed the group and asked if there was anyone with connnents. Seeing none, she closed this portion of the meeting. B. Public Meeting 1. Public Hearing: .. · ' a. BP03 00178 - Proposed zo~fing text anaendment to BMC 21.02.152 to revise the parking requirements for redeveloping properties ha the DC and DW zones. Commissioner Kennedy introduced the item and turned the floor over to staff, Chris Hago, DCD Director. [Con2nentary notes are enclosed h~ brackets.] Chris started by saying that at the last meeting there was a workshop on tl~is item. Fie then distributed the staff report to the conmzission. For the purpose of the pubhc hearing he set up the back~m'ound of this proposal. In late fall of 2001 the City Council on the recomrnendation of the Plarming Commission adopted new goals and policies for downtown development which becmne the basis for the illustrative plan (Calthrope Plan). Those goals and policies were then implemented in late fall of 2002 with implementing development regulations. One of the things the regulations called for was to create two zones, the Downtown Waterfront (DW) and Downtown Core (DC) zones. Also, for the first time applied a parldng requirement in the downtown area. The prior zone for that same geo~aphy was the BC zone (Business Core). That zone still exists outside of the study area. The BC zone still surrounds the new zones on a couple of sides. In that area there is still no requirement for parking. However, in the DC and DW zones there is a requfi-ement for parldng now for almost any use. The problem is that almost all that area has · o e of the arkin re uirement Most every now become nonoonformm, becans p g q · property in the DW and DC zones tlxat has a building on it is nonconforming because there is no parldng to support the building. When that requirement was imposed, it was done thqn!dng that we would be redeveloping much of downtown. So projects like the conference center and the new government building do have co~fforming parldng associated with the projects. We have announced the credit un/on building on 2'a, which also has parldng that conforms to the new code. He explafl~ed that there are existing provisions in the zordng code that allow for satellite parldng lots. So, one of the answers may be to go and get parldng on a satellite parking lot because there are 1,700 non-associated parldng stalls in the BC, DW, and DC zones. Whoever is in the controlling position for those lots are not inclined to give up those spaces in perpetuity. For occupancy of rehabilitated buildings would have to secure an mflimited right over time for those parldng spaces, essentially a note to title that the lot owner could not sell and could not redevelop that lot. That is not a good solution for the long haul. Planning Cormrfiss/on Meeting November 18, 2003 Page 2 of 10 He then said that there is a provision that would allow the director to waive additional parkhig requirements if there is a determination that the change of use or remodel does not result in a significant change in parking demand. He said that he has used this in a couple of cases while we have been waiting to fix the code. Chris said that this is a bad fix in that it requires us [DCD] to make some very formal detex~ninations and it is a fairly unguided authm-ity · .which can make it easy to be arbitrary. .- He concluded by saying that the proposal that was reviewed duting the workshop is detailed in the current handout. This action is a proposed addition to BMC 21.02.152. Section 152 is the section with the regulations in the new DC and DW zones and includes the parking requirements for ail uses in fl~ose two zones. This would be adding a new section, "f' at the end of 152, which applies to change of use or rehabilitation of existing buildings. He read directly from the staffrepor~, "~q~en an existing building or structure is remodeled or improved or has a change in use or tenancy, it shall be exempt fi'om off-street parking and landscaping requirements provided that I - the structure is not enlarged, extended or structurally altered to allow an increase in the gross floor area or 2 - the work being undertaken follows substantial destruction of the structure as provided for in the BMC 21.800, G.2." [That is a provision in our non-conforming rights section that says that if a building burns down 75% or more, it is essentially gone. The site can ordy be improved fully compliant with the existing codes at the time.] This would exempt a building from parking requirements during a remodel bui not if it is being done in compliance with substantial destruction section. Also, this would apply as long as the structure isn't enlarged in any way. Chris detailed the one problem with number one. If there is a structure with high, first floor ceilings (18 ft.). Tkis would not allow you to put a mezzanine in there for a restaurant. He said that this probably would not be in very many cases, but this would limit that because you cannot really increase the useable ~oss floor area of the structure. He said that this is a minor issue and this is one of those fixes that isn't a long term solution. It will ~eatly rel/eve people remodeling existing buildings from this requirement. He said that landscaping is an issue that if the project stays within the existing building wall, it is hard to address the landscape issue. The city will take care of the lmadscaping in the public right-of-way with street trees (in these zones). There was another provision regarding residential uses that occupied the street level frontages. Claris said that the provision was explained to l~im and that provision had been removed. It was related to the previous zoning designation (BC), which treated resideutial use as a secondary use. Planning Comn~ission Meeting November 18, 2003 Page 3 of l0 There has been a SEPA deten?aination made and as a non-project action, we issued a determination ofnon-sigmificance on November 5, 2003. That concludes the staff report and we have received no written public conuraents on this proposal. Commissioner Kennedy asked if there were any questions from the commission. Commissioner Wood had a question about landscaping requirements. She said that it is a chance to offer opportunity to e~xhance existing storefront landscaping other than just street trees. Commissioner Kosusko agreed. He asked Chris il'he could talk about what the landscaping requirements are in these zones that the exemption covers. Chris read from directly fi:om the code that landscaping is required in parking lots that are created as supporting uses. A parking lot is only allowed if it is associated with a primary use. No f~cee-standing parking lots are not allowed in these two zones. Commissioner Cockburn asked if there was open space landscaping required. This prompted a short discussion. Chris said that one of the things about the code that Mark Hinshaw developed for us is that it is a very simple code. It was similar to the code he produced for Tacoma, which was the smallest development codes for a downtown in America. But three years later that code is now three times thicker as it has gone through the process of being used by applicants and the staff. They have done what we are doing - starting with a very simple code and now we are coming back and trying to add sections because we have things in our history or in our urbanscape that are anomalies and so we are going back to tradition micro-manage every situation by adding a new code feature. He said that he was sympathetic with what Mark Hinshaw was trying to do, but it is going to take us a while to learn how to work with something so simple. He gave several examples to demonstrate his point. In conclusion he said that we will see how this goes and as long as it is respected in its philosophy maybe we can live with it. tt will just take one bad example and we'll be adding a new section to tlxis code, which will be landscaping. Commissioner Kennedy then opened the public testimony section of this hearing. Steve Krifles asked for clarification. He wanted to know if what DC, NC, and EC stood for. The EC, he said was located in the Harrison area. Chris answered by saying that DC is Downtown Core; NC is Neighborhood Commercial. He then explained that in the pla~ming that NC is Neighborhood Center and EC is Employment Center. CtuSs said that these are planning desiD~ations and do not relate to this parking proposal. Pla~ming Comm/ssion Meeting November 18, 2003 Page 4 of 10 Steve Krifles then asked about the DC located on lower Wheaton Way. Fie was told that DC is Downtown Core zone. The DC on lower Wheaton Way is a platming designmtion for District Center and is uurelated to the proposal being discussed. Steve stated that his question was answered. Commissioner Kenned.y then closed the public conm~ent section of the hearing.. Commissioner Kosnsko stated that this proposal seems to fill a gap that was left in the original regulation. We cannot require someone who win:ts to do something in an existing building without any parking to provide parking. He said that this is historically consistent witb the way things were zoned downtown before. Commissioner Wood said that she concurred with Con~nissioner Kosusko. Commissioner Kosusko made a motion that the Planning Commission recommend BP03 00178 Ia zoning text amendment to BMC 21.02.152 to revise the parking requirements for redeveloping properties in the DC and DW zones] to the City Council for adoption. Commissioner Wood seconded the motion. Chris interjected that there is a negative left out of section 'F.2.' The proposal is that 'the structure shall be exempt from off-street parking provided that the work is NOT undertaken following substantial destruction.' Fie said that this would probably require an amendment to the motion. Commissioner Kosttsko amended his original motion to include the addition of the word '~not" into section F.2. 'the work is not undertaken.' The motion was seconded by Commissioner Wood. Called for a vote: Bucl~dngham: yes; Cockbum: yes; Kosusko: yes; Streissguth: yes; Wood: yes; Kennedy: yes. Motion 2. Workshops: None. VI. BUSINESS MEETING A. Chair Report - Commissioner Kennedy. 1. Review o£Pl~nning Commission By-Laws - Commissioner Kennedy reminded the group that they had wanted to review our guidelines, etc. fix an executive session or open meeting. She said we need to get this on our agenda somewhere. Probably NOT on the next meeting (12/16/2003), because she expects that to be a long meeting [two Comp Plan elements]. There was a short discussion of what was to be covered at the next couple of meetings. Commissioner Kennedy said that iucluding it on an agenda later would allow the legal staff to review the bylaws, etc. Planning Commission Meeting November 18, 2003 Page 5 of 10 Commissioner Streissguth said that she had e-mailed Clu-is earlier today about this issue. She said that the ordinance she received attthorizing the authority of the Plmming Colmnission mad the subsequent bylaws. The in£ormation she received did not have the infomaation on the Hearings Examiner. She wanted to know if the change was done by ordinance change or and amendment to the by- laws. She said that it could be that all we are missing an mnendment. This prompted a short discussion of the change. Chris explained that before we had the Hearing Examiner there were references to the Planning Commission and the Plamfing Con2m2ission's authority to make decision all throughout the zordng code and several places in the Bremerton Municipal Code (BMC), prhnarily in the quasi judicial decision functions in the zoning code. So, when we created the Hearing Examiner system, the primary focus was on the zoning code and getting the language in the zoning code correct. The other section of the BMC that relates to the authority and duties of the Plarming Commission was probably just overlooked. The action that created the Hearing Examiner system was an ordinance. Then there were subsequent ordinance actions and m=endments to clean up everything to get it all consistent throughout the zoning code. The part relating back to the Planning Commission was just missed. This is primarily house-keeping in the BMC and in the by-laws. Chris said that the house-keeping issues can be done by the city legal sta£f but the by-laws are the responsibility of the commission itsel£ There was a short discussion of the role of the Planning Commission and the Hearhxg Examiner and related RCW's and ordinances. Commissioner Streissguth said that her feelings are that if the change occurred via ordinance to have quasi judicial matters handled by the Hearings Exanziner, that takes care of the ordinance issue. The by-laws are very general in nature and it is a simple amendment to add that provision that quasi judicial is now handled via the Hearings Examiner. Commissioner Wood asked if this would be passed on for old business for the next meeting to talk about a date to review our role and by-laws, etc. Maybe it could be a workshop or refresher course of what our rules are and how we communicate with the City Council. Commissioner Kennedy said yes. We will put it under old business to look at a date. B. Director Report: Cln-is Hugo. 1. Kitsap County Armnal Comprehensive Plan Amendments - Chris read in the paper that the County did move on their am~ual Comprehensive Plan mnendments. Apparently chose to ignore the input of the City of Bremerton (The Planning Commission and the City Council) on the matter of/nterirn rural forest lm2ds. F~e said that this is a serious issue to our future and he thinks there is a policy ?larming Commission Meeting November 18, 2003 Page 6 of 10 discussion to be had between the Conrmission and the Cotmcil about subsequent considerations that you might take. There are some recourses that are fomml. He explained that this takes us back more than five years in our relationship with the County. Filing of an appeal to the Growth Hearings Bom'd may be time sensit4ve. Commissioner Streissguth asked if Chi-is had the timelines for those options. 'Chris said that' since he had just read the paper thai da3;, no - he didn't have those tin~elines. He said that the first step would be to resubmit our request to see if we could get the County Commissioners to reconsider. Commissioner Kennedy stated that according to the article in the paper, there were some entities that were going to challenge the decision. She said that maybe the City of Bremerton could join in that challenge. Chris said that it is a possibility if the City Council chose to do that. He verified that the Commission had seen the letter fi.om the City Council to the County. It was a very strong letter saying that the language was confusing, it is hard for lay people to consume and understand the implications, but it appears to us that some pretty egregious things are going to happen. Things related to densities and the opportun/ty to attract 30,000 more residents out into the rural areas. We can attract a certain number of people here by doing good things, but you cannot compete with the ability to go out and sit on a r/dge top and look at the O]ympic Mountains on 2.5 acres. That is what this does. Chris said that he would refer back to the Commission once he has had a chance to talk to the City Attorney, who was not available today. I-Ie said he would also talk to the City Council and get back to the comm/ssioners individually with/n 30 days if possible. Commissioner Streissguth asked a question regarding procedure or protocol. She said there is a timeline in which to react and she anticipates the Commission should receive some type of staff report outlining the options available and the timelines associated with exercising those options. If we have less than 30 days, would that warrant a special meeting? Or is that something we would do it via e- mall, phones, etc. Chris said that he would try to get back with the Commission in a week and work through the Chair about any possibility of needing a special meeting. He said that it will depend on the overall timing with the Council schedule, the budget, the holidays, etc. - how much we can get done. Fie reiterated that the Council appreciates a formal response from the Plmming Com:rfissinn. Commissioner Kosusko asked if tlfis is a topic that Chr/s would bring to the City Council at the meeting the following ~xi~t. Chris answered that he would if he could get input from the City Attorney mad get a sense of how to proceed. 2. C~ty Bud~e! - Chris reported that all the City departmelttS are just han~ng tough. The DCD workload has gone up I00% in the last two years in dollar volumes of permit revenues, lie looks at pern~it revenues as being a direct Plarming ConnnSssion Meeting November 18, 2003 Page 7 of 10 reflection of workload. Long range plammrs are trying to get the Comprehensive Plan done. The current plmmer and building staff are seeing an increasing number of penTfits and project reviews come in. Like most departments, we are not getting any budget increases or resources. It is going to be a hard year for us. We have to get more revenues fi'om something other than just our office, sales tax and property tax. Our cost issues are driven greatly by things like health cure mhd persormel costs in general [abont 60% of. our. budget]. 3. Environmental Impact Statement (EIS) for the Comprehensive Plan - Chris informed the gToup that he and Paul Rogerson had interviewed two respondents to the Request For Proposals (P,_FP) for the EIS on the Comprehensive Plan. There were six respondents. Ail six were very qualified and firms Chris is familiar with and do excellent work. Two short-list finalists were selected Huckell-Weinman, ~vho worked for the City of Spokane and Spokane County doing some very chailen~ng EIS work. The other company was Jones & Stokes, who are also really well known. The difference in the two firms is Jones & Stokes is a large fima with lots of disciplines within their organization, interually well integrated firm. Huckell-Weinman is a small firm who partner with other disciplines to get the job done. Both are very well qualilled. In each case they talked about the idea of planned action. Planned action is ta!dng an area and doing such refine environmental review on that part of your planning environment. The review is so detailed that it is like aproject. If you do it as a planned action it essentially green lights the project after that. So when the project comes in for permits they don't have to go through a subsequent envirorm~ental review. It is a great thing because it can attract the activity to happen just because it is going to be easier and you don't have to worry about appeals and additional time. There is also a c~st savings, as well as time saving. Dining the interviews we found that the le~slature has created in the SEPA environment, other options to do different types oftlimgs and get some progress so that you are not just doing an EIS on your Comprehensive Plan, but you are actually making some progress toward implementation. One of them is a categorical exemption that if you create a certain planned environment, you can actually categorically exempt that environment f~om subsequent SEPA review. There is one other option as well. The good news to that was that some of our target areas like Westpark and maybe Manette Center and maybe downtown may all have enough structure in plans that have already been done to ~ve them a green light for SEPA. That is something that we will be exploring. He said that the Connnission and the City Council will be involved with that to malce decision about if we want to do tl~s. Any project area that we could qualify or find some money to get that work do~e will be a very econon~c way to get envirmmnental review done. One of the ways also is phased envlronrnental review. The EIS is set up as the first phase. Then subsequent sub-area plmming phases and center plmnzing phases. So the ElS is the first of a sequence of enviro~unental reviews and each subsequent one can rely back on the prior one. As you get more detailed you are essentially only PIa~nning Connnission Meeting November 18, 2003 Page 8 of 10 addressing the additional plam:ing detail. You are not going back and having to address the whole general enviro~m~e~*t again. Several strategies that will be very beneficial to us and are exciting and cost effective. Old Business: 1. Con-espondence from Com~cilman Shepher-d - Commissioner Streissguth mentioned that as she was reading through the minutes she was reminded about the correspondence from Councihnan Shepherd. She was wondering if the cormnission still needed to respond to that. Commissioner Kennedy stated that it has been responded to. She said that we responded along the guidelines of what was discussed. Basically, that we did have the Westpark presentation and the downtown plan overlayed what we had already recommended and had been adopted by the council so there wasn't any cacophony. It said that we didn't have any public hearings on it because it wasn't our place to do that. That is what brought up this wbole discussion. Councilman Shepherd felt that the Plmming Connnission would have some lind of say in whether this overlay [blighted area] and have a public process. However, it was the Council that had legislative power to do that. Commissioner Streissguth wanted clarification as to whether the Commission had responded. Again, Commissioner Kennedy stated that we had. Commissioner Kosusko talked about the Auto Zone store being constructed on 6th Street. He wanted to talk about that pattern of development. He said that he didn't think that any of them wanted that pattern of development to continue and hopefully, through our new planning process, it won't. He said that he didn't know about the quality of the building that was there but it was a building that fronted the street, had some community character and got tom down. We then end up with a building that is set back from the street 80 feet with parking in front of it with basically no character of its own. His statements prompted a short discussion about how to deal with patterns like this in the future. Chris stated that there should be sometl4ng in the plan [Comprehensive Plan] that says that strip commercial development should be contained to the extend of its existing use. He said there should be a policy there to fl~at affect. He said that he thinks it is existing use or occupancy, wlzich means even if it is zoned it doesn't stay. It has to be actually and occupied commercial site. But if it is just zoned or planned in the old plan it doesn't stay. He mentioned a conversation he had with a property owner from out of area. He has a property on Kitsap Way near the city lhnits. He was astdng about the ability to put a new business relating to the home furnishing industry. Claris told him that it would not be allowed under the new plan or the new strategy. He would require a new plan desi=mxation. The property owner was told that he could lobby for his interests. However, that is not the way the public process has gone. Chris said that they had quite a discussion and that the prope~ry owner was represented Planning Conzm/ssion Meeting November 18, 2003 Page 9 of 10 by a local lm~d use attorney. In the end they understood that this was being done for a reason. D. New Business: None. .VII. Adjournment Meeting was adjourned at 6:30 p.m. The next regular meeting is scheduled for December 16, 2003. Respectfully submitted by: S?'e y Approved by: Planning Con2mission Meeting November 18, 2003 Page 10 of 10 DATE SUBMITTED: January 14, 2004 BILL # 0q - 0~ 4 AGENDA BILL CITY OF BREMERTON CITY COUNCIL · }. ................ .............. ................. .. .... .., SUBJECT:^Authorizing an Interfund loan Committee Meeting Date: January 20, 2004 to the Wastewater Utility Fund from the ERR COUNCIL MEETING Date: January 2?, 2004 Fund 510 Department: Public Works Dept. and Finance Dept. Presenter: Gene Sampley and Michael R. Wilson Phone: 473-5590 SUMMARY: The Wastewater Utility requires a short term loan to provide cash flow needs for the calendar year 2004. The Wastewater Utility has a history of cash deficiencies necessitating the Utility to secure interim funding in the form of an interfund loan in the amount not to exceed $1,500,000.00. This loan shall be secured from the City's ERR Fund No. 510 and repaid from the Wastewater Utility Fund No. 451 on or before December 31, 2004, with interest at a rate of 2.5% per annum. ATTACHMENTS: A. Resolution authorizing an interfimd loan to the Wastewater Utility Fund from the ERR Fund 510; and B. January, 2004 Cash Flow Report. FISCAL IMPACTS (Include Budgeted Amount): The fiscal impact to the Wastewater Utility Fund will be the cost of interest accrued and to be paid on these loans (estimated not to exceed $!, 500,000.00. DEPARTMENT DIRECTOR: /t. /.~ )///4._ CITY ATTORNEY: _~~~ FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: ~..~ .. ~ ~ \~..-~--4 ~'~--. CONSENT AGENDA [] OPERATIONS: ¢1 t/~ 'x, L-~_I~..~, z COUNCIL PRESIDENT: RECOMMENDED MOTION: It is recommended that the City Counml move to approve Resolution No. ;lqt ~ authorizing the Director of Finance to make an interfund loan from the ERR (Fund 510) to the Wastewater Utility Fund (Fund 451) in the amount not to exceed $ t, 500 ~ 000.00. RESOLUTION NO. ~,ql~ A RESOLUTION of the City Council of the City of Bremerton, Washington, authorizing interfund loan to the Wastewater Utility Fund from the ERR Fund. WHEREAS, the Wastewater Utility Fund (Fund 451) has a current cash shortfall; and WHEREAS, the Wastewater Utility Fund has a history of cash deficiencies and the Wastewater Utility Fund currently does not have sufficient resources to provide cash flow needs without interim funding support; and WHEREAS, reserve cash in an amount sufficient to meet the Wastewater Utility Fund's interim fi~nding needs is presently on hand within the ERR Fund (Fund 510) to accommodate an inter£und loan through the end of the fiscal year; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City of Bremerton's Director o£Finance is hereby authorized and directed to make interfund loans from the ERR Fund (Fund 510) to the Wastewater Utility Fund (Fund 451) in the amount not to exceed $1,500,000 to meet the cash flow needs of the Wastewater Utility Fund. This loan shall bear interest at a rate of 2.5% per annum and shall be repaid to the Equipment Rental and Revolving Fund from the Wastewater Utility Fund on or before December 31, 2004. SECTION2. Severabilitv. If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity o£the remaining portion o£this Resolution and the same shall remain in full force and effect. SECTION 3. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington, on this __ day of 2004. DAREN NYGREN, Council President APPROVED AS TO FORM: ATTEST: ROGER LUBOVICH, City Attorney PAULA JOHNSTON, Interim City Clerk R:\LEGAL~.esolutionsLFinance~lnter-Fund Loan Res(WWl-04).doc 1 Inter-Fund Loan