HomeMy WebLinkAbout07/05/2006 AGENDA
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CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337-1873 03 (360) 473-5280
***AMENDED***
JULY 5, 2006
CITY COUNCIL MEETING AGENDA
1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in COUNCil CONFERENCE ROOM 603
A. General Council Business
2. CALL TO ORDER: 5:30 P.M. in MEETiNG CHAMBERS lOCATED ON FIRST FLOOR
A. Pledge of Allegiance
B. Invocation
3. MAYOR'S REPORT
4. PUBLIC RECOGNITION & ANNOUNCEMENTS
5. CONSENT AGENDA
A. Claims & Check Register (#AB06-140)
B. Meeting Minutes - June 28, 2006 (#AB06-141)
C. Collective Bargaining Agreement between the City of Bremerton and Teamsters Local No.
589 (#AB06-142)
6. GENERAL BUSINESS
A. Bid Award and approval of contract with BERSCHAUER PHILLIPS CONSTRUCTION COMPANY for
the Bremerton Police Department remodel and addition at Burwell & Chester (#AB06-143)
B. Ordinance No. 4975, amending certain sections of Chapter 2.76 of the Bremerton Municipal
Code (BMC) relating to procurement of goods and services; and repealing certain Ordinances
relating to the purchase and sale of goods, services, and property Item was originally
scheduled June 28, 2006 (#AB06-138)
C. Appointment of Development M::m:1ger :1t :1 step higher than R:1te 1 in P:1Y B:1nd 15 of the
2006 Management Salary PI:m; and adjustment of the Planning Manager to Rate 1 in Pay
Band 15 of the 2006 Management Salary Plan (1IAB06 111) Item pulled_..
7. PUBLIC HEARINGS
A. Ordin:1nce No. 1968, authorizing exemptions from ad 'Jalorem property taxation for ne-f: multi
family housing in designated centers Item vot3s originaJly schedu!od Apri! 19, 2006; aRd
discussed at:J study Session May 9, 2006 (1I1\B06 083) Item postponed...
8. COUNCIL r~'E~i8ER REPORTS
9_ ADJOURr~r~lEf~T OF C~TY COUr~CIL BUSn\~E_SS_ f~eET!N~
II Americans with Disabilities Act (ADA) accommodations provided upon request_ Those requiring
special accommodations should contact the City Clerk's Office at (360) 473-5323 by noon on the
Mondfllf orec:edinQ the Counc:i! meetinQ_
CITY COUNCIL MEETING
SPEAKERS LIST
PLEASE NOTE THAT ALL REQUESTS FOR INFORMATION FROM THE CITY OF
BREMERTON MUST BE SUBMITTED IN WRITING.
THANK YOU.
PLEASE PRINT YOUR NAME BELOW IF YOU PLAN TO
SPEAK DURING THE COUNCIL MEETING TONIGHT
C~V'~~ R Ov~ t~
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BILL # tX .-/y{)
DATE SUBMITTED:
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SA
.......................................................................................,
SUBJECT:
Claim & Checks Register Approval
Committee Meeting Date:
COUNCIL MEETING Date:
Department:
Presenter:
Phone:
(f J itJ,tJ-; d.. oD (0
F nanci 1 Services
Cathy Jolmson
SUMMARY:
ATTACHMENTS:
FISCAL IMPACTS (Include Budgeted Amount):
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
I CONSENT AGENDA \ZJ \
/1
5L~0,;,~i(
RECOMMENDED MOTION: Move to approve:
1) Check #'s :3 0,9.57::2 - 30'17'3 Y
EFT's 907Cf~ /~
$ 005 10;((. /C/
/
2) Regular Payroll for
3) Retiree Payroll for {,- '35-o~
$
$ 90( ~~.. v~
COUNCIL ACTION: ~ove
o Deny 0 Table
o Continue 0 No Action
DATE SUBMITTED: tp/:;...q /00
AGENDA BILl,
CITY OF BREMERTON
CITY COUNCIL
BILL # Dl).- 1+(
58
........................................................................................
SUBJECT: Minutes of Meeting -
JU he- 2-,13) 200 CD
Committee Meeting Date:
COUNCIL MEETING Date:
Department:
Presenter:
N/A
T t 5. '....001"
. 0.6 I 0'- \(/
Cityoundl
Cecil McConnell,
Council President
(360) 473-5280
Phone:
SUMMARY:
Attached are the meeting minutes for the Council Meeting held ::f' u VI e.- 2 e) '2-00 (b
ATTACHl\'IENTS: Meeting Minutes for ::JvV\€- 26; 2-000
FISCAL IMPACTS (Include Budgeted Amount): None
APPROV ALS:
DEPARTMENT DIRECTOR:
CITY A TTORi'JEY:
FINANCE DIRECTOR:
MAYOR:
I
CONSENT AGENDA cgJ I
FISCAL/BUDGET:
OPERATIONS:
COlJNCIL PRESIDENT:
,
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RECOMMENDED ,MOTION: Move to pass the CONSENT AGENDA as presented.
('O],-""C'~L '-rrIO'< "-,,, A
' , , 1.)1-.1 '1' At;', '1''1; l2:;J pprove
o Deny
r-l
LJ Table
n r'r'I'1(-J'nu'e 'L"I No Action
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DIGITAL RECORDING
CITY COUNCIL MEETING MINUTES
Wednesday, June 28, 2006
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton, Washington,
Wednesday, June 28, 2006, at 5:30 PM, with Council President Cecil McConnell presiding. Council
members present were Nick Wofford, Will Maupin, Carol Arends, Dianne Robinson, Mike Shepherd,
Wendy Priest, and Adam Brockus. Council Member Brad Gehring was absent. Also present were
City Attorney Roger Lubovich; City Clerk Paula Johnston, and Legislative Assistant Lori Smith.
The Pledge of Allegiance was led by Council Member Mike Shepherd followed by the invocation
provided by Pastor ROQer Henniqan of Apostolic Life Tabernacle.
President McConnell announced that a Pre-Council Session to discuss General Council Business
was held in Council Conference Room 603 from 5:00 to 5:30 PM; and included a 10-minute
EXECUTIVE SESSION was held to "Review Labor Negotiations" per RCW 42.30.140 (4) (b).
PUBLIC RECOGNITION & ANNOUNCEMENTS
Will Maupin read a proclamation on behalf of the City to proclaim the week of July 6 to 9, 2006 as
"Senior Games Week" in celebration of the 3rd Annual Bremerton West Sound Senior Games.
CONSENT AGENDA
A. Check Numbers 309292 through 309591; and EFT-9054 through EFT-9073 in the amount of
$1,251,449.00; and Regular Payroll in the amount of $653,808.07 for the pay period ending June
15,2006 (#AB06-126)
B. Meeting Minutes - June 7, 2006 (#AB06-127)
C. Meeting Minutes - June 14, 2006 (#AB06-128)
D. Sole Source Purchase of Four Service Truck Beds from ALLIED BODY OF SEATTLE (#AB06-129)
E. Communications Tower Lease Agreement with NEW CINGULAR WIRELESS PCS, LLC (#AB06-130)
F. Budget Adjustment for Budget Analyst Position in the Finance Department from July to
October 2006 (#AB06-131)
There were no comments from the public.
05:35:18 M/S/C/U (Brockus/Arends) Move to approve the Consent Agenda as presented.
GENERAL BUSINESS
Sf\. BID AWARD TO VVM. DICKSON CO. FOR DEMOLITION OF C/\PITAL HILL FIRE STATION:
AND RELATED BUDGET ADJUSTMENT (#AB06 132) Item was pulled from the agenda
. 5B - RESOLUTION NO. 2999 AUTHORIZING THE CITY TO MAKE FORMAL APPLICATION FOR
GRANT FUNDING FROM THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION
REGARDING THE AQUATIC LANDS ENHANCEMENT ACCOUNT GRANT FOR THE
BREMERTON BOARDWALK PROJECT (#AB06-133): Tom Knuckey, Engineering Department,
stated that the Aquatic Lands Enhancement Account (ALEA) grant program has been established by
the State to provide funds for the acquisition, restoration, or improvement of aquatic lands and to
improve public access to aquatic lands and associated waters. Funds from this program are
proposed to partially fund design, permitting and construction of the park component of the
Bremerton Boardwalk Project. To be eligible to receive the grant, a resolution in the format presented
must be completed.
There were no comments from the public.
City Council Reg. Mtg. Minutes
Wednesday, June 28, 2006
Page 2 of 4
05:40:52 M/S/C/U (Arends/Shepherd) Move to approve Resolution No. 2999 authorizing the City to
make formal application for funding assistance from the Interagency Committee for Outdoor
Recreation.
5C - RESOLUTION NO. 3000 AUTHORIZING THE CITY TO MAKE FORMAL APPLICATION FOR
GRANT FUNDING FROM THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION
REGARDING THE WASHINGTON WILDLIFE AND RECREATION PROGRAM - LOCAL PARKS
(WWRP-LP) GRANT FOR THE BREMERTON BOARDWALK PROJECT (#AB06-134): Tom
Knuckey, Engineering Department, described the Local Parks (WWRP-LP) portion of the
Washington Wildlife and Recreation Program which has been established by the State to provide
funds for upland and water oriented projects with a primary focus on upland recreation elements.
Funds from this program are proposed to partially fund construction of the park component of the
Bremerton Boardwalk Project. To be eligible to receive the grant, a resolution in the format presented
must be completed.
There were no comments from the public.
05:41 :35 M/S/C/U (Brockus/Maupin) Move to approve Resolution No. 3000 authorizing the City to
make formal application for funding assistance from the Interagency Committee for Outdoor
Recreation. .
5D - RESOLUTION NO. 3001 AUTHORIZING THE CITY TO MAKE FORMAL APPLICATION FOR
GRANT FUNDING FROM THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION
REGARDING THE WASHINGTON WILDLIFE AND RECREATION PROGRAM - TRAILS (WWRP-
TR) GRANT FOR THE BREMERTON BOARDWALK PROJECT (#AB06-135): Tom Knuckev,
Engineering Department, said that the Trails (WWRP-TR) part of the Washington Wildlife and
Recreation Program has been established by the State to provide funds to acquire, develop, or
renovate non-motorized trails that are not part of a street or roadway. Funds from this program are
proposed to partially fund design, permitting, and construction of the park and boardwalk components
of the Bremerton Boardwalk Project. To be eligible to receive the grant, a resolution in the format
presented must be completed.
There were no comments from the public.
05:42:35 M/S/C/U (Shepherd/Robinson) Move to approve Resolution No. 3001 authorizing the City to
make formal application for funding assistance from the Interagency Committee for Outdoor
Recreation.
5E - RESOLUTION NO. 3002 AUTHORIZING THE CITY TO MAKE FORMAL APPLICATION FOR
GRANT FUNDING FROM THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION
REGARDING THE WASHINGTON WILDLIFE AND RECREATION PROGRAM - LOCAL PARKS
(WWRP-LP) GRANT FOR THE BLUEBERRY PARK PROJECT (#AB06-136): Wvn Birkenthal,
Parks & Recreation Director, explained that the Washington Wildlife and Recreation Program - Local
Parks (WWRP-LP) grant program has been established by the State to provide funding for parks and
recreation oriented projects with a primary focus on regional recreation opportunities. Funds from
this program are proposed to partially fund construction of the Blueberry Park Project. To be eligible
to receive the grant, a resolution in the format presented must be completed. The requested action
before the City Council is approval of Resolution No. 3002 authorizing the City to make formal
application for funding assistance from the Interagency Committee for Outdoor Recreation.
City Council Reg. Mtg. Minutes
Wednesday, June 28, 2006
Page 3 of 4
There were no comments from the public.
05:43:15 M/S/C/U (Arends/Robinson) Move to approve Resolution No. 3002 authorizing the City to
make formal application for funding assistance from the Interagency Committee for Outdoor
Recreation.
SF - RESOLUTION NO. 3003 AUTHORIZING THE CITY TO MAKE FORMAL APPLICATION FOR
GRANT FUNDING FROM THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION
REGARDING THE LAND AND WATER CONSERVATION FUND (LWCF) GRANT FOR THE
BLUEBERRY PARK PROJECT (#AB06-137): Wvn Birkenthal, Parks & Recreation Director, pointed
out that the Land and Water Conservation Fund (LWCF) Program was established by the United
States Congress in 1965 with the passage of the LWCF Act. The Act authorizes the Secretary of the
Interior to provide financial assistance to the states for the acquisition and/or development of public
outdoor recreation areas and facilities found to be in accord with the Statewide Comprehensive
Outdoor Recreation Plan (SCORP). Funds for the program are derived from leaseholders of federal
offshore oil and gas resources, federal recreation fees, sales of federal surplus real property, and
federal motorboat fuel taxes. The National Park Service (NPS), within the US Department of the
Interior, manages this federal grant program. NPS is the federal agency that ultimately receives and
approves all project applications, agreements, and amendments.
The Interagency Committee for Outdoor Recreation (lAC) administers the LWCF Program in the state
of Washington. Funds from this program are proposed to partially fund construction of the Blueberry
Park Project. To be eligible to receive this grant, a resolution in the format presented must be
completed. The requested action before the City Council is approval of Resolution No. 3003
authorizing the City to make formal application for funding assistance from the Interagency
Committee for Outdoor Recreation.
There were no comments from the public.
05:44:03 M/S/C/U (Priest/Brockus) Move to approve Resolution No. 3003 authorizing the City to
make formal application for funding assistance from the Interagency Committee for Outdoor
Recreation.
5G ORDINANCE NO. 4975 AMENDING CERTAIN SECTIONS OF CHAPTER 2.76 OF THE
BREMERTON MUNICIPAL CODE (BMC) REL^.TING TO PROCUREMENT OF GOODS AND
SERVICES: AND REPEALING CERTj\.IN ORDINANCES REL^.TING TO THE PURCHJ\SE .'\ND
SALE OF GOODS. SERVICES. AND PROPERTY (1tAB06 138) Item was pulled from the agenda
5H - REAL ESTATE PURCHASE AND SALE AGREEMENT WITH BREMERTON HOUSING
AUTHORITY FOR PROPERTY LOCATED AT 8TH STREET AND PARK AVENUE (#AB06-139):
ROQer Lubovich, City Attorney, explained that the Bremerton Housing Authority owns property
located at 8th Street and Park Avenue. Staff is proposing purchasing the property in the amount of
$325,000 for the new municipal court facility. It is also requested that due to the change in scope of
the original project a transfer of $500,000 to the Public Safety Project Fund from the General Fund be
authorized to partially offset additional project costs. Mr. Lubovich thanked David Gitch, [Interim]
Executive Director of the Bremerton Housing Authority; members of the Bremerton Housing Authority
Board of Directors; and Bremerton Housing Authority staff for working with the City on this issue.
There were no comments from the public.
City Council Reg. Mtg. Minutes
Wednesday, June 28,2006
Page 4 of 4
Ms. Priest also thanked the staff from the Bremerton Housing Authority and the Council Members for
all of the time that was spent working on the purchase and sale of this property; but expressed her
reasons for not supporting this agreement tonight due to the use of surface parking instead of
underground parking, and because she questioned what kind of quality building the City would get
with the low construction budget estimates of $140 per square-foot.
Mr. Maupin stated that he served on a Committee with a goal to provide a facility that solved a lot of
the problems that existed with other proposed sites; and echoed the positive comments regarding the
cooperation received in working with the Bremerton Housing Authority Director; Board, and staff.
Mr. Brockus noted the contribution to these efforts of Council Member Brad Gehring.
05:49:50 M/S/C (Shepherd/Maupin) Move to approve the purchase of property from the Bremerton
Housing Authority; and authorize the Mayor to finalize and execute the real estate purchase and sale
agreement with substantially the same terms and conditions as presented; and to finalize and
execute any and all documents necessary to close the transaction; and further to approve a budget
adjustment to increase expenditures in the General Fund, and revenues and expenditures in the
Public Safety fund by $500,000 to facilitate transfer and approve expenditure of additional project
costs.
Voted in favor of Motion: Wofford, Brockus, Shepherd, Robinson, Arends, Maupin, McConnell
Voted opposed to Motion: Priest
Motion carried: 7-Yes; 1-No
With no further business, the meeting of the City Council was adjourned at 5:53 PM. The Council
reconvened in Council Conference Room 603 for a STUDY SESSION to hear presentations on
upcoming agenda items; and the public was invited to attend.
Prepared and Submitted by:
~~~~
LORI SMITH- thv ton' 8m 'Ih)
Legislative Assistant I
Attest:
PAULA JOHNSTON, City Clerk
CECIL McCONNELL, City Council President
CM:PJ:ls:cg
DATE SUBMITTED: 6-27-06
BILL # Db-I~d...
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SG
..............................................................................m.........
SUBJECT: Collective Bargaining
Agreement between the City and Teamsters
Local #589
Committee Meeting Date:
COUNCIL MEETING Date:
Department:
Presenter:
Executive Session
7-05-06
Financial Services
Carol Conley, HR
Manager
473-5347
Phone:
SUMMARY: Pursuant to RCW 41.56, negotiations have concluded between representatives of the
City and the Teamsters resulting in the attached Collective Bargaining Agreement (CBA). These
negotiations have been discussed with Council in Executive Sessions. This CBA replaces the current
one that expired on December 31, 2005. The new CBA is for a three (3) term, beginning January 1,
2006 through December 31, 2008. It was ratified by the Teamsters' membership on June 21, 2006.
Council approval is required to implement this agreement.
,.,
A TT ACHMENTS: Proposed Collective Bargaining Agreement between the City and Teamsters
Local #589
FISCAL IMP ACTS (Include Budgeted Amount): There are sufficient funds set aside in the 2006
budget to cover the cost of the proposed contract. A General Fund budget adjustment for 2006 of
$67,046 and a Utilities and Other funds adjustment of $154,048 to reallocate the labor costs from the
Miscellaneous Non-departmental budget (set aside for Labor) to the various departments is required.
The projected cost of this CBA for all funds in 2007 is $465,798 and in 2008 is $819,456.
---;>
~~~--L CONSENT AGENDA r'
A~J/$7~/
RECOMMENDED MOTION: Motion to approve the Collective Bargaining Agreement by and
between the City and Teamsters Local #589, January 1, 2006 through December 31, 2008, and make
the necessary amendments to the budget.
APPROVALS:
DIVISION MANAGER
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
COUNCIL ACTION: 0 Approve 0 Deny 0 Table
o Continue 0 No Action
2006-2008 Contract for Ratification
.' .' .
COLLECTIVE BARGAINING AGREEMENT "
BY AND BET\VEEN
THECITY OF 'BREMERTON
" " '1: '..""
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" GENERAL TEAMSTERS LOCAL UNION NO. 589
~, . , ' , -'. .. -. . - .
January 1,200,24 through December 31, 200~S
COLLECTIVE BARGAINING AGREEMENT
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO, 589
January 1,2006 through December 31,2008
I OF 35
TABLE OF CONTENTS
TO THE
AGREEMENT
BY AND BETWEEN
CITY OF BREMERTON
AND
GENERAL TEAMSTERS LOCAL UNION NO. 589
JANUARY 1, 200fi4 THROUGH DECEMBER 31, 200.85
PREAMBLE ......... .............. .................. ................. ............... .............. ... .......... ................ ........ ........... .....................5
ARTICLE 1 ........... Non-Discrim ination ................................................................................................................. 5
ARTICLE 2 ........... Recognition....................................................................................................................... ........ 5
ARTICLE 3 ....... .... Union Dues ..... .............. .......................................... ....... ... ............ ...... .............. .............. .........6
ARTICLE 4 ........... Union Access ........................................................................................................................... 7
ARTICLE 5 ........... Wages.............................................................................................................................. ..........8
ARTICLE 6 ........... Hours Of Work .......................................................................................................................11
ARTICLE 7 ........... Overtime ................................................................................................................................12
NEW ARTICLE.... ..Probationary Period................................................................................. ...
ARTICLE 8 ........... Vacation Leave ......................................................................................................................14
ARTICLE 9 ........... Holidays .................................................................................................................................] 7
ARTICLE 10 ......... Sick Leave And Industrial Disability ..................................................................................... ] 8
ARTICLE]] ......... Other Paid Leave ...................................................................................................................20
ARTICLE ]2 ......... Retirement Benefits ................................................................................................................21
ARTICLE 13 ......... Insurance Benefits .................................................................................................................22
ARTICLE ]4 ......... Work Related Expenses..........................................................................................................23
ARTICLE ]5 ......... Subcontracting Work .............................................................................................................27
ARTICLE 16 ......... Municipal Court Non-Civil Service Employees Employment Rights....................................27
ARTICLE] 7 ......... Drug Free Work Place ...........................................................................................................28
ARTICLE 18 ......... Bus Passes ..............................................................................................................................29
ARTICLE 19 ......... Management Rights ...............................................................................................................29
ARTICLE 20 ......... Work Stoppages ..................................... ....... ................. ......................................... .... ...........29
ARTICLE 21 ......... Grievance Procedure ..............................................................................................................30
ARTICLE 22 ......... Severability ........................ ................................ ................. .................. ..... ................... ..... ....3 ]
ARTICLE 23 ......... Entire Agreement ...................................................................................................................31
ARTICLE 24 ......... Conflicting Provisions ........... ................. ............... .................... .......... ...... ..... ................... ....32
ARTICLE 25 ......... Labor Management Committee .............................................................................................32
ARTICLE 26.... .....Job Sharing ..............................................................................................................................30
ARTICLE 27 ..........Temporary Assignment And Special Assignment...................................................................31
ARTICLE 28 ..........Wastewater Treatment Plant Employees.................................................................................3]
ARTICLE 29 ....... Teamsters Supp]emental Pension Plan ...................................................................................35
ARTICLE 30 ... .....Downtown Parking................................................................................... ....32
NEW ARTICLE... ..Automatic Promotion from Planner I to Planner If.............. ~....................................
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON. WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 3 I, 2008
FOR RAPAGE 2 OF 33
ARTICLE 31 .... ....Tenn...... ...... ... ............ ......... ... ............... ............ ..................... ...... ..... ......32
APPEND IX A ....... ........................................................................................................................................... ......34
"
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 31, 2008
FOR RAPAGE 3 OF 33
ALPHABETICAL SUBJECT INDEX
APPEND IX A .................................................................................................................................... ................... .34
AUTOMATIC PROMOTIONAL FROM PLANNER I TO PLANNER II (NEW).....................................
BUS PASSES ............................................................................................ ARTICLE 18 .....................................29
CONFLICTING PROVISIONS ................................................................ ARTICLE 24 ..................................... 32
DOWNTOWN PARKING................................................... .....ARTICLE 30 ............................ 32
DRUG FREE WORK PLACE .................................................................. ARTICLE 17 ..................................... 28
ENTIRE AGREEMENT ........................................................................... ARTICLE 23 .....................................31
GRIEVANCE PROCEDURE ................................................................... ARTICLE 21 ..................................... 30
HOLIDAYS ............................................................................................... ARTICLE 9 ....................................... 17
HOURS OF WORK ................................................................................... ARTICLE 6 ....................................... 11
INSURANCE BENEFITS ......................................................................... ARTICLE 13 ..................................... 22
JOB SHARING .............. ............... .............. .... ..... .............................. ..... ... ARTICLE 26.......... ... ................. ..... ....30
LABOR MANAGEMENT COMMITTEE ............................................... ARTICLE 25 ..................................... 32
MANAGEMENT RIGHTS ....................................................................... ARTICLE 19 ..................................... 29
MUNICIPAL COURT NON-CIVIL SERVICE EMPLOYEES
~
EMPLOYMENT RIGHTS................................................................... . ARTICLE 16 ..................................... 27
NON-DISCRIMINATION ........................................................................ ARTICLE 1 .........................................5
OTHER PAID LEAVE ............................................................................. ARTICLE 11 ..................................... 20
OVERTIME .............................................................................................. ARTICLE 7 ....................................... 12
PREAMBLE ................... ..................... ................................... ........ .., ........ ....... ................................ ..... ....... ........... 5
PROBATIONARY PERIOD (NEW
RECOGNITION ............................ ....... ................................. ..... ..... ... ........ ARTICLE 2 ....... ...... ... ................ ..... .... 5
RETIREMENT BENEFITS ....................................................................... ARTICLE 12 ..................................... 21
SEVERABILITY ....................................................................................... ARTICLE 22 ..................................... 31
SICK LEAVE AND INDUSTRIAL DISABILITy.................................. ARTICLE 10 .....................................18
TEAMSTERS SUPPLEMENTAL PENSION PLAN....................... ...ARTICLE 29.......................... ...32
TEMPORARY ASSIGNMENT AND SPECIAL ASSIGNMENT ........... ARTICLE 27.......................................31
SUBCONTRACTING WORK .................................................................. ARTICLE 15 .....................................27
TERM ......................................................................................................... ARTICLE 31 ..................................... 32
UNION ACCESS ...................................................................................... ARTICLE 4 ......................................... 7
UNION DUES ........................................................................................... ARTICLE 3 ......................................... 6
VACATION LEAVE ................................................................................ ARTICLE 8 ....................................... 14
WAGES ...................................................................................................... ARTICLE 5 ......................................... 8
WASTEWATER TREATMENT PLANT - EMPLOYEES ...................... ARTICLE 28.......................................31
WORK RELATED EXPENSES ................................................................ ARTICLE 14 ..................................... 23
WORK STOPPAGES ............................................................................... ARTICLE 20 ..................................... 29
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 3 I, 2008
FOR RAPAGE 4 OF 33
AGREEMENT
BY AND BETWEEN
CITY OF BREMERTON
and
GENERAL TEAMSTERS LOCAL UNION NO. 589
JANUARY 1, 200~4 THROUGH DECEMBER 31, 200~4
PREAMBLE
This Agreement is made and entered into pursuant to the provisions of RCW Chapter 41.56 by and between the
City of Bremerton, a municipal corporation of the State of Washington, hereinafter known as the "City", and the
General Teamsters Local Union No. 589 hereinafter known as the "Union" for the purpose of setting forth the
wages, hours and working conditions which will be in effect during the term of this agreement for employees
incl~ed in the bargaining unit described in Article 2 below.
ARTICLE 1
NON-DISCRIMINATION
1.1 Non-Discriminatory Application - The provisions of this Agreement will be applied equally to all
employees in the bargaining unit without discrimination as to age, sex, marital status, race, color, creed,
religion, national origin, political affiliation; or mental, physical or sensory handicap, unless based upon
a bona fide occupational qualification.
1.2 Non-Discrimination--Union Activity - The provisions of this Agreement will be applied equally to all
employees in the bargaining unit without discrimination as to Union affiliation or legal Union activity or
lack thereof. The City and the Union will each be responsible for complying with this provision.
ARTICLE 2
RECOGNITION
2.1 Represented Employees - The City recognizes the Union as the sole and exclusive bargaining
representative for the purpose of negotiations concerning wages, hours and conditions of employment
for all full-time employees in regular positions and part-time employees in regular positions in
classifications set forth in Appendix A and such classifications as may be added to the bargaining unit
during the term of this Agreement by mutual agreement or by official action of the Public Employment
Relations Commission.
2.2 Classifications Excluded - The classifications of elected officials, appointed officials on part-time
boards and commissions, city attorneys, department heads and their assistants, and supervisors (unless
specified in the union recognition section) are not included and will not be added to the bargaining unit.
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2.3 Employees Excluded:
2.3.1 Seasonal employees are employees used by the City to handle peak work load periods. Seasonal
positions will be used for no more than eight (8) months in a calendar year in accordance with
City Policy.
2.3.2 Temporary employees are employees used by the City for specific projects or programs, or to
replace employees temporarily unable to work per Article 27.1.
2.3.3 Project temporary employees are assigned for the term of a specific project or program and
may exceed one (1) year, provided, however, that the term of the assignment may be further
extended by mutual agreement of the parties, and such employees shall be members of the union
as per Article 3.
2.3.4 All other temporary employees shall be excluded from the bargaining unit with the understanding
that neither the employees nor the positions will be used for more than a total of 12 months in
accordance with the applicable Civil Service Rules.
2.3.5 Confidential employees regardless of the classification they occupy.
-''',
2.4 New Classifications - In the event the City creates a new position or reclassifies an existing position
proposed to be exempt from the bargaining unit, the Union will be notified in writing. In the event that
the Union disputes the City's proposed exemption of the new position from the bargaining unit, the Union
will provide written notice specifying the reasons for dispute within thirty (30) calendar days of receipt of
written notice from the City. In the event that the City and the Union are unable to resolve the dispute,
either party may refer the issue to the Public Employment Relations Commission for resolution.
ARTICLE 3
UNION DUES
3.1 Dues Deductions - Based upon mutual agreement, regular monthly union membership initiation fees,
dues, agency fees and assessments will be deducted by the City from the pay of those employees who
provide written authorization to the City to make such deductions. The City will transmit the total
amount of deductions to the Union along with a list of employees and their Union-related deductions.
3.2 Maintenance of Membership - An employee covered by this Agreement who is a member of the
Union on or after the execution of this Agreement will remain a member in good standing. Good
standing will be defined as tendering of uniformly required periodic dues. Failure of such an employee
to abide by the foregoing provision will constitute cause for discharge of the employee, provided that
when an employee fails to fulfill the above obligation, the Union will provide the employee thirty (30)
days notification in writing of the Union's request to the City to initiate discharge action and during this
period the employee may make restitution in the amount which is overdue. Should the employee make
such restitution, the request for discharge will be withdrawn.
3.3 New Employees - New employees employed during the life of this Agreement will, within thirty (30)
days of their respective date of employment, or upon the inclusion of their position in the bamaining
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unit achieve good standing in the Union and will thereafter maintain such good standing as a condition
of employment. Good standing will be defined as tendering of uniformly required periodic dues and
fees. Failure of such an employee to abide by the foregoing provision will constitute cause for discharge
of such employee subject, however, to the same requirement for notification and opportunity for
restitution as specified in Section 3.2 above. The City will notify the Union of newly employed
bargaining unit employees as they are hired so a shop steward may be available at time of orientation. It
shall be understood that new employees do not have the option to donate money to charity in lieu of
paying dues. unless it is due to the bona fide religious tenets or teaching of a church or religious bodv of
which the emplovee is a member. The employee will pay an amount of money equivalent to regular
Union dues and fees to a non-religious charity or to another organization mutually agreed to between the
employee and the Union.
'"
Union Security - All bargaining unit employees not currently paying dues, shall be required to pay dues
or donate an equal amount to a qualified charity as identified under IRS Code 501 C (3) Those
employees donating money to a charity in lieu of the payment of periodic dues, shall be required by the
Union to produce proof of payment to the charity. Failure of such an employee to abide by the foregoing
provision will constitute cause for discharge of the employee, provided that when an employee fails to
fulfill the above obligation, the Union will provide the employee thirty (30) days notification in writing
of the Union's request to the City to initiate discharge action and during this period the employee may
make restitution in the amount which is overdue. Should the employee make such restitution, the
request for discharge will be withdrawn. (The intent of this language is to address those current
employees donating money to a charity in lieu of periodic dues payments).
3.4
3.5 Refusal to Join l.Jnion:::::: An employee who refuses to join the Union on the basis of bona fide religious
tenets or teaching~; of a church or religiow; body of which the employee is a member \vill pay an e,mount
of money equivalent to regular Union d'..les and fees to a non religious charity or to another organization
mutually agreed to bet\veen the employee and the Union.
3.6 Indemnification - The Union will indemnify and hold the City harmless from any and all liability
resulting from the dues and fees deduction provisions specified in this Article.
ARTICLE 4
UNION ACCESS
4.1 Union Representatives - The Union will provide written notice to the City of the names of the officials
authorized to represent the Union. The City will provide reasonable access to City facilities to such
authorized representatives for the purpose of investigating grievances and other legitimate Union
business provided that such access does not unreasonably interfere with the work and duties of an
affected employee or of other on-duty employees.
4.2 Shop Stewards - The Union will have the right to appoint six (6) Shop Stewards. The Union will
make every reasonable effort to have no more than four (4) stewards from the same department.
4.2.1 The Union will provide written notification to the Human Resources Director of the name and
assigned areas of all Shop Stewards appointed by the Union. The City will provide reasonable
access to employee work places to Shop Stewards for the purpose of investigating grievances
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provided that such access does not unreasonably interfere with the work and duties of an affected
employee or of other on-duty employees. A Shop Steward will obtain the permission of his or
her supervisor and the supervisor of the affected employee prior to contacting an employee
during work hours. A Shop Steward may perform his or her Steward duties on City paid work
time provided that such duties do not unreasonably interfere with the Steward's ability to perform
the duties of his or her position with the City. In no event, however, will a City employee who is
a Shop Steward be granted more than five (5) hours of paid work time for the purpose of
investigating and resolving a single grievance. It shall be understood that the five (5) hours
maximum does not mean five (5) hours per workday, but five (5) hours total time.
ARTICLE 5
WAGES
5.1 Pay Rates -
5.1.1
Effective January 1, 200~4, the wages as shown in Appendix "A" shall be increased by two point
three one oneoo-e percent (2.311 % +%). Employees who have separated from City
employment before the effective date of ratification of the contract by the Union and City
Council shall not be entitled to any retroactive pay increase.
, 5.1.2
.,
Effective January 1, 2001~, the wages as shown in Appendix "A" shall be increased by 100% of
the Seattle/TacomalBremerton CPI- W from June 2002; to June 200~4except that the increase
shall be no less than 2% if the CPI- W is less than 2% and no greater than 5% if the CPI- W is
more than 5%.
5.1.3
Eflective .Januarv 1, 2008, the wages as shown in Appendix "A" shall be increased bv 100% of
the Seattle/TacomalBremerton CPI- W from June 2006 to June 2007. except that the increase
shall be no less than 2.5% if the CPI-W is less than 2.5% and no greater than 5% if the CPI-W is
more than 5%. plus the wages shall be increased by 1 SYo in addition to the CPI- W increase.
Example#l: The CPT- W is 2.3%, therefore the total wage increase would be 3.5% (2.5%
guaranteed minimum -+- 1 %).
Example #2: The CPI-W IS 5.2%. therefore the total wage ll1crease would be 6.5% (5%
maximum -+- 1.5%).
5.2 New Emplovees - A new employee's pay rate will be set at first step of the pay scale; however, a new
employee may have his or her pay rate set at a higher step based upon relevant years and type of prior paid
work experience. Placement of a new employee's pay rate at a step higher than the first step must be
approved by the Department Director, the Human Resources Director and Finance.
5.3 Advancement through Pay Rates - Advancement through the pay rates from the first step through the
final step of the pay range will occur upon completion of the prescribed number of months or year(s) of
continuous employment since the employee's last pay placement, provided, the City may withhold a step
increase for work performance that does not "Meet Expectations". A step increase may be withheld for a
maximum of twelve (12) months, during which time the employee will receive monthly evaluations. The
employee's immediate supervisor will notifY the employee in writing of expected failure to meet
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expectations at least thirty (30) days prior to the due date of the work performance evaluation. If such notice
is not provided the step increase will not be withheld. The withholding of a step increase will not change
the employee's current anniversary step date for pay purposes. In the event that the employee "meets
expectations" at one of the monthly evaluations during the subsequent 12 months, they will receive a step
increase effective as of the due date of that monthly evaluation. It shall be understood that the increase will
not be applied retroactively to the month(s) in which the employee received a rating below 'meets
expectations". In the event an employee is on approved leave of absence without pay, in excess of eighty
(80) consecutive work hours, the employee's next pay rate advancement date will be extended by the actual
number of days the employee was absent on such leave.
.
5.4 Pay Rate upon Placement at New Pay ranee-
5.4.1 Reclassification/downerade to a lower classification - In the event an employee is reclassified
from one classification to another classification which is at a lower pay range or, if an employee's
classification is downgraded from one pay range to a lower pay range, the employee's pay rate at the
lower pay range will be set at that step which is closest to, equal to, but not greater than the pay rate
he or she was receiving at the former pay range. All time the employee had served at the former
step toward advancement to the next step of the former pay range will be used in determining the
time required to advance to the next step of the new pay range. If the employee is at final step or
", beyond the final step in the new pay range, then hislher pay rate shall remain frozen at that rate until
such time as the final step provides for an increase.
5.4.2 Reclassification/uperade to a hieher classification - In the event an employee is reclassified from
one classification to another classification in a higher pay range the employee will receive no less
than the entry level step of the new pay range or a five percent (5%) pay increase, whichever is
greater; provided that no employee is thereby advanced beyond the final step of the higher pay
range. The employee's advancement to the next step in the new pay range will be based on the
effective date of the reclassification to the new pay range.
5.5 Loneevity Pay - Longevity pay will be applied to the base hourly pay rate of each employee for years of
completed continuous employment on the following basis:
o through 5 years' continuous employment 0%
Commencing 6 through 10 years' continuous employment 1 %
Commencing 11 through 15 years' continuous employment 2%
Commencing 16 through 20 years' continuous employment 3%
Commencing 21 years and over continuous employment 4%
5.6 Premium Conditions -
5.6.1 Standby - An employee is placed on standby duty when the City requires the employee to be
immediately available to report for work other than during his/her normal scheduled hours of
work. When standby is implemented, all qualified bargaining unit members, including leads
and supervisory bargaining unit members, shall share in the standby hours or lists.
5.6.1.1 Standby Equipment -
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A. An employee on standby duty will be provided with a radio that has a police
frequency~
B. Assigned stand-by duty employees shall have the take home use of a city
vehicle for the week, per City policy.
5.6.1.2 Standby Pay - The following standby rates will apply:
A. Weekday or regular day off beyond two - Two (2) hours of employee's
regular hourly rate of pay;
B. Holiday - Three (3) hours of employee's regular hourly rate of pay;
C. Regular day off - Three (3) hours of employee's regular hourly rate of pay
up to a maximum of two (2) days;
D.
Type of Compensation - The employee shall receive pay as J)rovided
above for all stand-by duty. Emplovees mav not accrue compensatory time
for stand-by duty.may choo~;e pay or compen~;atory
time pursuant to Section 7.2.1.
."
5.6.1.3 Standby will normally consist of not more than seven (7) consecutive days, provided;
however, based upon mutual agreement of the employee and immediate supervisor, the
employee may be placed on standby in excess of seven (7) days.
5.6.2 Shift Differential - An employee assigned to work a shift schedule which begins at 12 noon or
later and/or earlier than 6 a.m. will be compensated a shift differential of seventy-five cents
($.75) per hour for each hour of the shift so worked.
5.7 Paydays - Paydays will be the 7th and 22nd of each month. If a payday falls on a Saturday, Sunday, or
on a Monday holiday, the City will make every effort to distribute pay checks on Friday. The parties
encourage employees to utilize "automatic deposit" of their paychecks.
5.8 Direct Deposit - New employees hired after the date of ratification of this agreement by both parties,
shall be required to sign up for direct deposit of their pay checks.
5.9 Payroll Errors - Should the City be responsible for any payroll error, adjustments in excess of fifty
($50.00) dollars will be paid within two (2) business days.
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ARTICLE 6
HOURS OF WORK
6.1 Normal Hours of Work - The normal hours of work for regular full time employees will be forty (40)
hours per week. The normal hours of work for regular part time employees will be the number of hours
per week that the Department Head schedules which will not exceed forty (40) hours per week and will
not exceed the Department's approved budget allocation for the position.
6.2
.,
Normal Work Schedule - The normal work schedule for regular full time employees will consist of
five (5) consecutive eight (8) consecutive hour days~ or four ('I) consecutive ten (10) consecative hour
~ Alternate work schedules. i.e. 4110's. 9/80's. may be approved at the discretion of the Department
Director when thev are in the best interest of the City. The 411 0 schedule as referenced in this document
also means an alternate work schedule as provided herein. The Department and employee may mutually
agree to any other work schedule by the filing of an alternate work schedule form that shall require the
approval of the Department and the Human Resources Manager. Except in emergency situations (such
as weather and acts of God) employees will be given fourteen (14) calendar days notice of any change in
their normal work schedule, except that Public Works and Utility Department employees will be given
seven (7) calendar days notice of any change in their normal work schedule, otherwise employees will
receive overtime compensation. The normal work schedule for regular part time employees will be that
which is scheduled by the Department Head and shall consist of no more than five (5) consecutive days
in a workweek. The normal work schedule will usually be set to begin on Monday and conclude on
Friday but may be set to begin on another week day and conclude five (5) consecutive days thereafter,
based upon the needs of City. The City will make every reasonable effort to schedule employees with
two (2) consecutive days off between workweeks.
6.3 Meal Periods - All employees shall have a regularly designated mealtime, 30 minutes or one (1) hour
in length, without pay, which shall be scheduled by the Department Director or designee. The thirty
(30) minutes or one (1) hour designated mealtime includes travel time to and from the work site. The
lunch period will take place no sooner than three (3) hours and no later than five (5) hours from the
beginning of a 5/8 schedule, and no sooner than four (4) hours and no later six (6) hours from the
beginning of a 411 0 schedule. No employee will be required to work more than five (5) consecutive
hours without a meal period. An employee who works three (3) or more hours beyond their normal
work day shall be allowed at least one thirty (30) minute meal period either prior to or during the
overtime period. When an employee is required by the City to remain on duty on the premises or at a
prescribed work site when it is in the best interest of the City during a meal period, the meal period will
be paid as time worked.
6.3.1 Employees shall be allowed one (1) rest period (break) per one half (1/2) shift (workday)
provided:
A. The time, length and location of break is determined by the employee's supervisor,
with the understanding that the employee shall receive no more than fifteen (15)
minutes.
B. Break periods will be scheduled as near as possible to the midpoint of a work
period. The City will make a reasonable effort to ensure that no employee is
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January 1,2006 through December 31,2008
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required to work more than three (3) hours without a rest period.
C. The purpose of granting breaks is to relieve fatigue and mental strain on the job;
therefore;
1. Combining two (2) daily breaks into one thirty (30) minute break IS not
permitted.
2. Using breaks to lengthen meal periods, to cover tardiness, or to leave work
early is not permitted except under special circumstances and with the
approval of the Department Director or designee.
3. Accumulating breaks from day-to-day is not permitted.
ARTICLE 7
OVERTIME
7.1 Overtime Defined - Overtime is all required and authorized work performed in excess of a full time
employee's normal 40 hour and/or daily work schedule. Overtime includes required training, instruction,
callback and other such work which is required and authorized by the City, and is performed during an
"", employee's normally scheduled off duty time. Overtime for regular part-time employees is all required
and authorized work performed in excess of forty (40) hours during the employee's weekly work
schedule pursuant to Article 6, Section 6.2. The use of any paid leave time will be considered as time
worked for the purpose of calculating overtime.
7.2 Overtime Compensation - Overtime work will be compensated at the rate of one and one-half (1-112)
times an employee's hourly rate in cash or in compensatory time. The form of overtime compensation
will be at the election of the employee provided Compensatory time off will be taken by mutual
agreement between the employee and supervisor. Upon the death of the employee, accrued
compensatory time shall be paid to the employee's estate.
7.2.1 Use Of Compensatory Time - The maximum allowed accrual of compensatory time shall be
fifty (50) hours, and all overtime accrued in excess of that maximum shall be paid at the
applicable rate. Employees who wish to cash out all or a portion of his/her accumulated
compensatory time will have the option to receive this pay the pay period ending November 15th
lust pay day of November. Employees who wish to exercise this option shall submit their
request, in writing, to the Department Director, no later than November I st of each year.
7.3 Telephone Calls To Employees - If an employee receives a work related telephone call while off duty,
he/she shall receive a minimum of one quarter (114) hour pay at the overtime rate for each call,
provided, however, that additional calls received by the employee within the quarter hour minimum
shall not pyramid.
7.4 Call Back Minimum Overtime - In the event an employee who has departed from his or her normal
work hours is called back to work for a period of time which is less than two and a half (2.5) hours, the
employee will receive a minimum of two and a half (2.5) hours of overtime compensation. A call back
initiates a two and a half (2.5) hour guarantee period. Subsequent call backs will not initiate an
COLLECTIVE BARGAINING AGREEMENT for ratification
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additional two and a half (2.5) hour guarantee period until the original two and a half (2.5) hour
guarantee period has passed.
7.5 Court and/or Subpoenaed Appearances - An employee who appears in Court or responds to a
subpoena as a representative of the City which is related to his or her employment on off duty time shall
receive overtime compensation for such appearances. If the employee is being prosecuted for a willful,
illegal act in the performance of their duties as a city employee, they will not be paid for time unless they
are found innocent and/or the case is dismissed.
7.6 Use of Ban:minine: Unit Emplovees for Overtime - The City shall offer G.T. to qualified bargaining
unit employees within the division prior to utilization of temporary employees for such G.T. The City
will make a reasonable attempt to offer this work by seniority.
7.7 Emere:encv Crews - Employees may be pre-assigned to an emergency shift schedule (e.g. 12-hour
shift for Snow Removal Crews). Crews will be designated as follows: "A" shift and "B" shift.
Employees on emergency crews will receive shift differential pay and work the 12-hour shift
throughout the period of the emergency. Employees in each crew (both "A" and "B" shifts) called out
for an emergency shift shall receive two hours callout (overtime) pay for the first full 12-hour shift.
(e.g. Pay would be 2 hours overtime for the call-out, 6 hours straight time, plus 4 hours overtime. That
" crew's next emergency shift pay would be 8 hours straight time plus 4 hours overtime.)
Pay for call-outs prior to the full emergency shift will be in accordance with overtime and callout policy
per Article 7. If the callout occurs within two (2) hours of the first emergency shift, the first emergency
shift crew will respond and work continuously through the shift.
EXAMPLES:
Snow Removal Crew - If an emergency schedule is initiated after 10 p.m. but before the normal
shift (7:30 a.m.), the "B" shift will be called in and work until noon or eight hours minimum. If the
callout occurs prior to 10 p.m., the "A" shift will be called in and work until midnight when "B"
shift will relieve. If the emergency is declared during the normal work shift, "B" shift will work the
normal eight (8) hours then be released; "A" shift will work until midnight when relieved by "B"
shift.
Other Emereencv Crews - Any other divisions may use other start/quit times, but will follow the
principle of the example of the Snow Removal Crew.
When the Division Manager has determined that the emergency condition is over, the crews will revert
to their regularly scheduled shift. The transition shifts going into and out of the emergency shift
schedule, will work until released by the supervisor, however, they shall work a minimum of eight (8)
hours during the transition shift.
NEW ARTICLE - PROBATIONARY PERIOD
New Emplovees - New employees hired after the effective date of ratification of this agreement shall be
required to serve a probationary period of one (1) vear. Probationary emplovees are "at will" employees
COLLECTIVE BARGAfNING AGREEMENT for ratification
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during their probationary period and during that time may be terminated without reason or cause and
have no recourse to anv Civil Service appeal process.
Promoted Emplovees - Employees promoted shall serve a six (6) month promotional probation period
which shall complv with the Civil Service Rules of the City of Bremerton for promotional probation.
ARTICLE 8
V ACA TION LEAVE
8.1 Vacation Accrual - Employees shall accrue vacation leave for all regularly scheduled compensated
hours including paid holiday, sick leave, vacation and other paid leave time, excluding workers'
compensation time loss benefits pursuant to the following schedule:
Period of Continuous Full Time Employment
Hours AccruedN ear
",
Date of Hire through 5 years
6th year
7th year
8th year
9th year
1 Oth year
11 th year
12th year
13th year
14th year
15th year
16th year
17th year and thereafter
104 Hours
120 Hours
128 Hours
136 Hours
144 Hours
152 Hours
160 Hours
168 Hours
176 Hours
184 Hours
192 Hours
200 Hours
208 Hours
8.2 Vacation Eli\?:ibility - An employee becomes eligible to take accrued vacation leave upon completion
of six (6) months of continuous employment. Probationary employees may be permitted to use earned
vacation leave due to extenuating circumstances solely at the discretion of the Department Director.
Vacation leave may not be taken in less than one-quarter (114) hour increments. Vacation leave must be
earned in the pay period prior to the time an employee takes any vacation leave since accruals are added
to an employee's leave balance after payroll has been posted.
8.3 Vacation Schedulin\?: - Annual vacation leave will be mutually scheduled between the employee and
his or her Department Head or designee. Vacation leave must be approved by the Department Head
prior to an employee taking the time off. In the event more than one employee requests vacation leave
for the same time period submitted on the same day, the requesting employee with the greatest city-wide
seniority shall be granted the vacation leave. 'rhe Department shall make a good faith effort to respond
to a vacation leave request in a timely manner.
8.4 Maximum Vacation Accrual - The maximum number of vacation accrual hours that any employee
will be allowed to carry forward from one calendar year to the next will be as follows:
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Years of Service
Maximum Carryover Hours
Date of Hire through 5 full years of employment
Over 5 full years of employment
160 Hours
240 Hours
8.5 Carryover - In the event an employee has been prohibited from taking sufficient vacation time to reduce
his or her vacation balance to the maximum allowable carryover at the end of a calendar year, (or unable
to because of absence from work due to illness or disability) the excess hours will be carried forward into
the next the calendar year. An employee who fails to request scheduled vacation time during the year
and whose accrued vacation hours exceed the maximum carry over balance at the end of the calendar
year shall forfeit such excess vacation hours.
8.6 Vacation Pay-Out - Upon the retirement or separation of a regular employee, or upon the date of an
employee's disability retirement, the accrued vacation hours of such an employee will be paid to the
employee in a lump sum payment at the employee's straight time hourly rate at the time of separation
except an employee shall not be paid vacation payout unless employed over six (6) months).
8.7 Payment of Vacation Leave Upon Death - In the event of the death of an employee, the employee's
'" estate will be paid in a lump sum for the total accrued and unused vacation leave hours at the employee's
regular hourly pay rate in effect at the time of death.
8.8 Donations Of Vacation Leave - Donations of Vacation leave permit employees to aid any City
employee who is suffering from an extraordinary or severe illness, injury, impairment, physical or
mental condition which has caused or is likely to cause the employee to take leave without payor to
terminate his or her employment prior to a determination that the affected employee is not expected to
recover to an extent that will enable the employee to resume his or her normal duties or the duties of
another position with the City or another employer.
8.8.1 Eligibility - An employee who (1) is suffering from an illness or injury causing his or her
extended absence from work, and (2) who has depleted or will shortly deplete his or her
total available accrued vacation, compensatory leave accrual, sick and floating holiday
leave, may request donations of vacation leave.
8.8.2 Criteria For Approval - A request for donations of vacation leave shall be submitted to
the requesting employee's Department Head accompanied by medical documentation
verifying the medical condition requiring the need for leave, and the time period during
which the employee can reasonably be expected to be absent from work due to the
condition. Upon verifying that the requesting employee meets all of the eligibility
requirements above and upon determining that the medical documentation received
provides appropriate verification of the medical condition and time period involved, the
Department Head will recommend the employee's request for donations of vacation leave
be approved by the Mayor. The Mayor will review the request to assure that all of the
requirements set forth in this subsection have been met and, if so, shall approve the
employee's request for donations of vacation leave.
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8.8.3 Notification - Upon approval by the Mayor, all City employees shall be notified of the
approved request for donation of leave.
8.8.4 Conditions Of Donation - An employee who has been employed for at least six (6)
months who desires to donate accrued vacation leave to a requesting employee will do so
as a free and voluntary act and no duress or coercion shall be placed upon an employee to
make such donation of hislher accrued vacation leave. Employees who are utilizing
donated leave to cover their own absences may not donate leave to another employee
until such time as they have returned to their normal schedule, and any excess donations
made to them have been returned pursuant to 8.7.5 below. An employee who desires to
donate vacation leave shall complete a Donation of Vacation Leave Form and submit it to
his/her Department Head. The donated vacation leave will be transferred to the requesting
employee's sick leave balance with the next payroll report. Forms will be date stamped
and all time donated shall be in full hour increments and shall be credited to the employee
on an hour-for-hour basis. A monthly update of the condition of the employee by the
attending primary medical doctor shall be required and furnished to the Department
Director.
8.8.5
Use Of Donated Leave - An employee who has received donated vacation leave will be
able to use the sick leave in the same manner as if he or she had personally accrued the
leave, provided that the use of the sick leave is in conformance with the provisions of this
Article.
''"'
8.8.6 Return Of Excess Leave Donations - Donated leave will remain in the employee's sick
leave balance for a period of six (6) months from an employee's return to work, and may
only be used by the employee for absences related to the condition for which it was
donated. In the event of excess donations received but not used due to early recovery,
resignation, retirement or death, all donations received but not utilized shall be returned
to the donating employee(s) based on the proportion of hours that employee donated in
relation to the total hours donated by all employees (e.g. an employee who donates 50
hours of 450 hours total donated shall be credited with 50/450ths of the hours not
utilized). Such returned leave shall be reflected in the appropriate leave balance as soon
as possible. Time donated for this purpose will not be considered as time used during the
donor's performance rating period.
8.9 Administrative Leave - Any bargaining unit employee may be placed on Administrative Leave (leave
with pay) for reasons in the best interest of the City and/or employee (e.g. to diffuse a work-related or
personal problem or to conduct an investigation). The City may place certain restrictions on an
employee on Administrative Leave and require himlher to be available during his/her normal work
schedule. Emplovees nonnally scheduled to work on other than an 8 am to 5 pm schedule shaH be put
on a 9 AM - 5 PM schedule when placed on Administrative Leave. If an emplovee is unavailable at anv
time during the alternative time schedule, then a leave slip must be turned in to cover the amount of time
the employee is unavailable.
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8.10 Cancellation of Vacation Leave by City - If an employee has an approved vacation canceled by the City,
the City will reimburse the employee for all verifiable non-refundable expenses incurred by the employee
after the date the Leave Request was approved.
ARTICLE 9
HOLIDAYS
9.1 Holidays Observed - The following holidays will be observed by the City:
HOLIDAY
DATE OBSERVED
New Year's Day
Martin Luther King's Birthday
President's Day
Memorial Day
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
One Floating Holiday
January 15t
3rd Monday in January
3rd Monday in February
Last Monday in May
July 4th
1 st Monday in September
November 11 th
4th Thursday in November
4th Friday in November
December 25th
Approval of Supervisor
"
9.1.1 In addition, any other holiday legally proclaimed by the Federal or State government, provided
that the City takes official action to have such holiday also observed by the City.
9.2 Alternative days of Holiday Observation - If a holiday observed by the City falls on a Saturday, the
holiday will be observed on the preceding Friday. If a holiday falls on a Sunday, the holiday will be
observed on the following Monday. If the day a holiday is observed by the City falls on an employee's
regularly scheduled day off, the employee will receive an alternate day off as a paid holiday during the
same or following pay period.
9.2.1 Floating Holiday - One (1) floating holiday (eight (8) hours) will be granted to each employee
at a time which is mutually agreeable to the employee and the employee's immediate supervisor. New
employees shall have been employed by the City for six (6) months in order to qualify for a floating
holiday. Floating holiday leave may not be taken in less than one (1) hour increments.
9.3 Holiday Compensation (Full Time Employees) - An employee shall receive eight (8) hours of time
off with pay for each holiday observed by the City, including a floating holiday of each employee's
choice. An employee who is assigned at the City's request to work a four-day ten (10) hour schedule
will receive ten (10) hours of time off with pay for each holiday. In order to receive holiday
compensation, each employee must work or be on authorized paid leave on the scheduled work day prior
to or the scheduled work day immediately after each holiday.
9.4 Holiday Compensation (Part Time Employees) - Part-time employees who regularly work 20 or more
hours per week will receive pro-rated IIoliday Leave based upon their average norma) workdav. but in
COLLECTIVE BARGAINING AGREEMENT for ratification
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no case less than four (4) hours. finy (50%) percent of their normal work day, provided they v,'ill receive
not less than four (1) hours.
9.5 Working on a Holiday - An employee required to work on a holiday will be compensated at one and
one-half (1-1/2) times the employee's regular straight time rate of pay for the time worked in addition to
regular holiday pay provided in 9.3 above.
ARTICLE 10
10.1
10.2
10.3,
10.4
10.5
10.6
SICK LEAVE AND INDUSTRIAL DISABILITY
Sick Leave Accrual - Employees will accrue sick leave time with pay at the rate of four hours per pay
period .0'16151 hour~; for e~',ch regular hour v;orked, including paid holiday, sick leave, vacation and
other paid leave time and excluding time for which workers' compensation time loss benefits are paid.
Employees who are on a leave of absence without pay will have their leave pro-rated if they have worked
any portion of a pay period at .046154 for each regular hour worked as outlined above. The maximum
annual accrual will be ninety-six (96) hours.
Maximum Sick Leave Accrual - Employees will be able to accrue sick leave to a maximum of 1200
hours on January 1 st of each year.
Sick Leave Incentive - Effective January 1. 2007. anv non-probationary employee covered under this
Agreement who does not utilize his/her sick leave benefit from January 1 st through June 30th in a
calendar year shall have their vacation leave balance credited with (8) additional hours on the pay
period ending July 31 Sl. and. any non-probationary employee who does not utilize his/her sick leave
benefit from July 15t through December 31 5t shall have their vacation leave balance credited with eight
(8) additional hours on the pay period ending January 31 st. An employee who takes thirty two (32)
hours or less of sick leave in the calendar year "viII have eight (8) hours added to his or her vacation
leave balance at the beginning onhe f()llo\ving calendar year.
Sick Leave Retirement Payment - An employee who retires from City service on a service or
disability retirement will be provided a Sick Leave Retirement Payment at thirty-five percent (35%) of
the employee's accrued and unused sick leave hours to a maximum of 35% of 960 hours (a maximum
total of 336 hours). The payment will be made to the employee at the employee's regular hourly pay rate
in effect at the time of retirement.
Payment of Sick Leave Upon Death - In the event of the death of an employee, the employee's estate
will be paid for the total accrued and unused sick leave hours at the employee's regular hourly pay rate in
effect at the time of death.
Sick Leave Use - Sick leave shall not be granted in advance of actually being accrued. Sick leave will
be made available to each employee up to the amount of each employee's accrued sick leave balance
and shall be used in increments of no less than one-quarter (1/4) hour to cover an employee's absence
from his or her regularly scheduled work hours due to:
10.6.1
The temporary disability of an employee resulting from his or her personal illness or i~ury.
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10.6.2
10.6.3
10.6.4
10.6.5
10.6.6
"
Providing care for: a) a child of the employee under the age of 18 when they have a health
condition that requires supervision or treatment; or b) a spouse, parent, parent-in-law or
grandparent of the employee who has a serious health condition or an emergency condition.
Attending medical, dental and/or oculist appointments as needed for preventive or
rehabilitative health care of the employee or the employee's children when such care
requires parental presence to supervise or authorize treatment.
Upon the birth or adoption of a child, an employee may use accrued sick leave pursuant to
FMLA.
Providing care for an employee's immediate family member as provided for in Section
10.6.2, when the family member has a health condition that requires the assistance of an
adult caretaker until such time as other care can be arranged. No more than forty (40) hours
of sick leave can be used for this purpose for the following family members: brother,
sister, brother/sister in-law, grandparent's in-law, grandchildren, and step relations as
described herein of both the employee and the employee's spouse. (Revised RCW 49.12.270
as of 1-1-04).
Only when an employee has exhausted all sick leave accrued mav he/she use other types of
leave to cover his/her absence.
10.7 Notification of Sick Leave Use - An employee who is absent or expects to be absent from work due to
causes specified in 10.6 above, will provide notification as follows:
10.7.1
10.7.2
Routine Appointments - An employee who schedules a routine medical, dental or oculist
appointment will make every reasonable effort to schedule such an appointment at a time,
which will cause the least interference with departmental operations. The employee shall
give prior notice of the date and time of the appointment to hislher immediate supervisor.
An employee's immediate supervisor may request that the employee reschedule routine
appointments when, in the judgment of the supervisor, the scheduled absence of the
employee would unduly interfere with the operations of the Department, however, the
immediate supervisor will not umeasonably require an employee to reschedule routine
medical, dental or oculist appointments.
Unanticipated Absence - An employee who is absent from work or will be unable to
report to work as scheduled due to personal illness or injury, or for other causes specified in
10.6 above, will promptly notify their immediate supervisor, or if unavailable, the
department/division manager by telephone as soon as practicable and will make every effort
to notify their immediate supervisor, or if unavailable, the department/division manager
within the first one-half hour of each work day or, if possible, within the one-half hour
preceding each work day of absence. In the event neither the immediate supervisor nor the
department/division manager can be contacted directly, the employee may leave a voice
mail message. However, the employee is obligated to speak directly to the employee's
immediate supervisor or the department/division manager during the day of the employee's
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absence. Each employee will be given contact information (including office/cellular/pager
numbers), to the employee's immediate supervisor and department/division manager. In the
event of a prolonged illness or injury, the Department may exempt an employee from the
requirement to report their absences on a daily basis, and may establish an alternative
reporting arrangement appropriate to the circumstances.
10.7.3
Sick Leave during Authorized Paid Leave - An employee who becomes ill or is injured
during his/her paid vacation or compensatory time off for accumulated overtime, may
request the conversion of such paid leave to sick leave with pay by promptly notifYing the
department of the illness or injury and providing such information as is required by the
department to verifY the appropriateness of such a conversion.
10.8 Sick Leave Documentation and Approval - An employee who has been absent on sick leave will,
within the first work day after returning to work, complete and submit a request for approval of sick
leave on the City's Leave Request form, and provide such information as is required by the Department
to approve the use of sick leave with pay for the absence. Sick leave must be approved by the
Department prior to payment. The Department will not unreasonably withhold approval of sick leave
with pay from employees.
-"' 10.8.1 Sick Leave Certification - The Department may require an employee to provide a professional
physician's certification of an employee's, child's or family member's illness or injury as a
condition of approving sick leave with pay. In the event the Department intends to require such
verification, the employee will be notified of the requirement prior to returning to work.
10.8.2 Return to Work/Fitness for Duty Certification - The Department may require an employee to
provide a Fitness for Duty certification completed by a professional physician that the employee
is sufficiently recovered as to be able to return to work and assume his or her normal duties prior
to the employee returning to work or, in the event the employee has appeared at work, prior to
resuming work. If the department does not allow the employee to return to work due to the need
for a Fitness for Duty certification, the employee will be allowed to continue the use of sick
leave.
10.9 Industrial Disability Leave - An employee who incurs a work-related illness or injury and who
qualifies to receive Workers' Compensation benefits will be allowed to use accrued sick leave to
supplement the Workers' Compensation benefits so as to provide the same gross pay he or she would
have received for full time, active service. In no event will the combination of Workers' Compensation
and employee sick leave exceed lOO% of an employee's regular pay rate at any time of the disability
period.
ARTICLE 11
OTHER PAID LEAVE
11.1 Bereavement Leave - An employee willbe granted three (3) days of bereavement leave for attending
funerals in the State of Washington and five (5) days for out of state funerals of members of the
employee's immediate family. Immediate family shall be defined as spouse, child, mother, father,
mother/father in-law, brother, sister, brother/sister in-law, grandparents, grandparents in-law,
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grandchildren, step relations as described herein of both the employee and the employee's spouse. All
time off for bereavement leave may be charged against an -employee's vacation, floating holiday, sick
leave or compensatory time leave balance at the option of the employee, if available. Additional time off
may be requested by the employee and granted by the Department head in extenuating circumstances.
11.2 Jury Duty, Witness Leave - An employee shall be granted a leave of absence with pay for the
purpose of reporting to or serving on jury duty or serving as a witness on a case relating to their job
with the City, except in those instances when the employee is involved as a party in an action being
taken against the City. Any juror or witness fees received by the employee for the performance of
such duties shall be assigned to the City. If more than 2.5 hours of their workday remains at the time
of release from jury duty or serving as a witness, the employee shall report for duty.
11.2.1
City Notification - Employee shall be required to notify the City immediately upon
receipt of written notification from the Court that they must report for Jury Duty or serve
as a Witness as the result of a case related to his or her employment, by submitting a Leave
Request form with a copy of the Jury Duty/Witness Notice attached. Upon telephone
confirmation by the Court to report, employee shall immediately notify the on-duty
supervISOr.
11.3., Military Duty Leave - An employee who presents official orders requiring his/her attendance for a
period of training or other active duty as a member of the United States Armed Forces or the State
National Guard shall be entitled to military leave with no loss of pay for a period not to exceed fifteen
(15) work days annually. Authorized leave of absence for additional or longer periods of time for
assignment to duty functions shall be without pay (unless the employee chooses to use accrued
vacation leave or compensatory time) and shall be granted by the City. An employee receiving up to
fifteen (15) work days of training or serving on active duty shall receive their regular pay and the
amount received from the Federal or State government, pursuant to RCW 38.40.060 as may be
amended from time to time.
11.4 Emen?:ency Leave - In the event of an unforeseen emergency which requires the absence of an
employee, the employee will promptly notify his or her immediate supervisor, or in the absence of the
immediate supervisor, the manager on duty in the Department within the first one-half hour of each work
day or, if possible, within the one-half (1/2) hour preceding each work day of absence. Such emergency
leave shall be charged to an employee's unused vacation, floating holiday or compensatory time leave
balance.
ARTICLE 12
RETIREMENT BENEFITS
12.1 State Retirement System - Each employee will be enrolled in the Washington State Retirement system
for which he or she qualifies. Contributions to the Retirement system will be made on a pre-tax basis.
Each employee will be covered by the federal Social Security Act.
COLLECTIVE BARGAINING AGREEMENT for ratification
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FOR RAP AGE 2 I OF 33
ARTICLE 13
INSURANCE BENEFITS
13.1 Medical Insurance - The City will make medical insurance coverage available to employees and their
dependents, as follows or another plan of equivalent or better coverage:
It Kitsap Physician's Service (KPS) Plan B
. Group Health Cooperative (GHC)
13.2 Insurance Premium Payments - Payment of insurance premiums will be made as follows:
13.2.1 Employee premium paid in full by the City. Employee eontribution toward dependent coverage
\-"ill be seven ($7) dollars per month per dependent up to a maxinr.m1 of twenty one ($21)
dollars per month for full family coverage.
13.2.2 Effective Jammry 1, 2005, Section 13.2.1 no longer applies. Employees will be required to pay
the following contributions towards the monthly premiums for medical coverage effective as of
the 1st of the month following ratification of the agTeement:
KPS Plan B or Group Health:
-'"'
Employee only coverage
Dependents coverage
Employee
Employee
0%
5%
City
City
100%
95%
GHG
Emplo)'ce onl)' coveragc Employee pays 100% of the difference betv;een the
City's contribution to KPS Phm B E~mployee only coverage and the cost of
GIIC employee only coverage.
Dependent coverage Employee pays ] 00% of the difference between the City' ;;
contribution to KPS Plan 13 dependents coverage and the cost of GEC dependents
coverage.
13.2.3 Effective January L 2008 emplovees will be required to pav the following contributions towards
the monthly premiwns for medical coverage:
Employee onlv coverage:
Employee
0% City 100(%
Depcndents coverage:
Employee
10% City 90%
13.2.4 STIPEND IN LrElJ OF MEDICAL COVERAGE - An employee who waives the right to
obtain medical insurance coverage through the City and who provides proof of credible coverage
through his/her spouse or other source shall be entitled to receive a stipend of one hundred fifty dollars
($150.00) per month, payable in the amount of seventy-five dollars ($75.00) per pay. Employees shall
be required to notifY Human Resources, in writimr. during open enrollment, of their desire to waive
medical coverage. or at anytime during the year if a qualifying event occurs which would change their
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13.3
13.4
13.5
",
13.6
status (e.g. marriage, divorce, spouse loss of job or medical coverage). For initial implementation of this
benefit for those who elect to waive coverage. the paymerit of the stipend will not be retroactive to
January 1, 2006. but will become em~ctive the first pav period of the next month following ratification of
the agreement. Since both KPS and Group Health underwriting requirements require a 75% participation
rate, in the event that there is less than a 75% participation rate due to employees waiving medical
coverage, the City may cease offering the stipend due to the adverse impact upon those insured.
Dental Insurance - The City will provide the same benefit levels as are contained in the Washington
Dental Service Plan F dental program for employees and their dependents and provide for full payment
of insurance premiums.
Insurance Benefits Committee - The Insurance Benefits Committee will be comprised of the following
members: Mayor or designee, Human Resources Manager or designee, Admini:;trative Service:;
Financial Services Director or designee, one employee selected by the non-represented management and
professional employees, and one individual selected by each of the recognized unions. The committee
will elect a chair and any other officers it deems appropriate.
In the event changes in state or federal law create an impact on the present health and welfare premiums
or plans, the parties will reopen negotiations on such subject.
Vision Insurance - The City will pay the premium for the Washington Teamsters Welfare Trust Vision
Plan for all bargaining unit employees employed in the previous month. It shall be the responsibility of
the employee to ensure that the required paperwork is completed in a timely manner in order to enroll
him/herself ancIJor dependents.
ARTICLE 14
WORK RELATED EXPENSES
14.1 Uniforms - The City will provide new and replacement uniforms for each employee in the department
whenever the department head determines it is in the best interest of the City. The characteristics of
the uniform and what will constitute the uniform shall be at the sole discretion of the Department
Head or designee.
14.1.1
Employees furnished uniforms shall be required to wear their uniform when performing
work and required by the department.
14.1.2
Standard uniforms provided by the City through uniform service contracts; i.e., shirts,
pants and jackets, will be maintained by the City at City expense. All other uniform
apparel such as polo shirts, tee shirts, etc., purchased by the City shall be maintained by
the employee at the employee's expense.
14.1.3
Employees are expected to take reasonable care of their uniforms. Employees shall notify
their supervisor when uniforms are in need of replacement and/or repair.
14.1.4
City uniforms shall not to be worn during non-work hours or to non-work locations,
except for incidental stops to or from work and meal periods.
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14.1.5
While in uniform, employees shall not publicly' drink intoxicating liquor, be publicly
intoxicated or under the influence of a controlled substances.
14.2 Cleanilll! Allowance -
The cleaning allowance for Warrant Servers shall be $350.00. which shall be paid in the pay period
ending Januarv 15th.
14.3 Warrant Servers - The City will provide five (5) uniforms to Warrant Servers.
14.4 Tool Allowance - Vehicle Maintenance:
14.4.1
The City will provide an annual tool allowance of $300 per mechanic to buy more efficient
tools or to replace lost, broken, or stolen tools as follows:~
Effective as of Januarv 1. 2006 in the amount of$425.00
Effective as of January 1, 2007 in the amount of $450.00
-"
Effective as of Januarv 1. 2008 in the amount of$475.00
14.4.1.1 Payment of the tool allowance will be made in the pay period ending
Januarv 15th.
14.4.1.2 Should an employee separate from City employment during the vear. a pro-rated
reimbursement to the City for the tool allowance shal] be withheld from the employee's
final paycheck. based upon the number of months left in the calendar vear.
Example: Employee receives $425 tool allowance in Januarv and then separates from
employment in Mav. Employee would be required to reimburse the City in the amount of
$247.94 ( $425.00 divided by 12 = $35.42/month x 7 months {.June through December n
14.4.2
The City will purchase all specialty or new tools that are required to perform the job
because of changing technology or City equipment.
14.4.3
Replacement of tools lost or stolen on City property or while performing City business will
be replaced in accordance with City Policy #3-10-16.
14.4.4
All special and heavy duty tools, power tools, and tools larger than one-half (1/2) inch drive
will be furnished and maintained by the City. The City will service and repair all employee
owned pneumatic and calibrated tools.
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14.5 Safety Shoes -The City will reimburse employees up to a maximum of $125.00 for the cost of WISJIA
approved safety or calked shoeslboots, when the Department/Division has determined that they are
required including inspectors, as follows:~
Effective as of January 1, )006 up to a maximum of $150.00
Effective as of January 1. 2007 up to a maximum of$165.00
Effective as ofJanuary 1,2008 up to a maximum of$175.00
14.6
CDL License - When a Commercial Drivers license (CDL) is required for a position by the City, the
City will only pay for the cost of the CDL endorsement and required physical examination when making
initial application and upon any required renewal.
14.7
License/Certification Differential Pay -Employees that are required by the City and/or choose to have
a Washington State certification or license above the minimum certification level set forth below will
receive fifty dollars ($50.00) per month for each current certificate above the established minimum.
Certifications obtained outside of the certification series identified for the division or work group will be
considered only when such certification benefits the City as determined by the Director of Public Works
& Utilities.
''"'
14.7.1 WWTP (WWTP Operator Certification Series)
· WWTP Operator - WWTPO Group II Plant
· WWTP Lab Technician - WWTPO Group II Plant
· 'WWTP Operations Supervisor - WWTPO Group III Plant
14.7.2 Water Operations (Water Distribution Certification Series)
· Water Operator - Water Distribution Manager I
· Water Operator Sf. - Water Distribution Manager II
· Water Operator Lead - Water Distribution Manager II
· Water Operations Supervisor - Water Distribution Manager III
· Environmental Technician and Water Resources Assistant (Water Distribution, WWTP Operator, or
Sewer Collection Certification Series) Level II Certification in any Series. Differential pay is
allowed for certifications above Level II for one series only.
14.7.3 Water Maintenance (Water Distribution Certification Series)
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e Water Distribution Supervisor - Water Distribution Manager III
14.7.4 Cross Connection Control Specialist (Cross Connection Control and Backflow Assembly
Tester Certification Series)
. Cross Connection Control Specialist I
14.7.5 Storm/Sewer Maintenance (Sewer Collection System Certification Series)
. Utility Service Specialist Supervisor - Sewer Collection System Level III
14.7.6 Automotive Maintenance Technicians (Automotive Service Excellence Certification Series)
. One ASE Master Certification - Automotive, Heavy Equipment, or Emergency Vehicle Technician.
Differential /Jay is allowed for each additional Master Certification
14.7.7 Electronics (International Municipal Signal Association - Traffic Signal Certification Series
and NT Telephone Certification)
'" . Electronics Technician - IMSA Level II - Traffic Signal
14.7.8 Traffic Maintenance (International Municipal Signal Association - Signs and Markings
Certification Series)
. Sign Shop Service Specialist Supervisor - IMSA Level III - Signs and Markings
14.7.9 Engineering (Professional Engineer and Land Surveyor). There is no Certification
Diffcrc:'ltial Pay allowed for EIT or LSIT Certifications.
. Engineer I - Engineer-In-Training Certification or Land Surveyor-in-Training Certification
. Engineer II - Engineer-In-Training Certification
. Engineer III - Professional Engineer
14.7.10 Certified Under-wilter Divers The City will provide monthly certification pay as prcwided in
the Agreement for up to (2) two employees \'Iho are National Association for Underwater Instructors
(NAUI) certified (or equivalent) marine divers for undcrv,'ater maintenance and non hazardous
investigations. Divers will provide all their 0\',11 diving equipment; however, the City shall replace any
equipment damaged in the line of duty. The City shall proyide all supplie~; required for any ',','ark
reqGested including air. /\n employee's air tanks shall be refilled by the employee at the end of each
assignment, and the City '.vill reimbur:;e the employee for the cost of refilling the tanks. It shall be
understood that employees holding this certification shall be given the opportunity to refuse to perform
work they feel is too dangerous.
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14.8 Maintenance of Certifications - The City will reimburse an employee for the actual costs of obtaining
and maintaining a professional or work related certification -including a CDL license, which is required
by the City or has been required as a condition of working in a particular classification.
14.9 Failure to maintain/obtain required certifications - If an employee fails to obtain or maintain a
certification required in order to perform the essential duties and functions of his/her position, shall not
receive the monthly certification pay. New hires who are required to obtain a CDL license for their
position within six months from their date of hire, and who fail to obtain the required CDL license shall
be terminated by the City.
14.10 Meal Expense - The City will reimburse an employee up to eight ($8.00) dollars per meal for meal
expenses when the employee is required to work during a bona fide emergency situation after
completing his or her regular work day, provided that the employee works at least three (3) additional
hours during a twenty-four (24) hour period. To receive reimbursement for meal expense, the employee
will submit an appropriate expense claim form
14.11 Travel Authorization and Expense Reimbursement - Travel authorization and expense
reimbursement shall be pursuant to Chapter 2.74, Travel Authorization and Expense Reimbursement, of
the Bremerton Municipal Code.
''"'
ARTICLE 15
SUBCONTRACTING WORK
15.1 The City of Bremerton and the Union will agree that conditions surrounding decisions to subcontract
work normally performed by non-uniformed employees are subject to the following: The City will
provide a minimum of thirty (30) days advance notice of it's intention to subcontract out work and
bargain the impact of such proposed subcontracting. In the event the City enters into a contract,
depending on the needs of the City at that time, the City shall have the option to either to keep those
affected employees employed in any job classification for which they are qualified, at their current rate
of pay, or to pay them under the following conditions: Either one (1) week of severance payor continued
employment for each completed year of regular employment with the City, up to a maximum of 16
weeks. Employees will be cashed out of all vacation leave accrued as provided by current agreement.
Payout for Sick leave accrual will be granted only to those employees who are within five (5) years of
earliest retirement under (PERS), and then at a maximum not to exceed seventeen and one-half percent
(17.5%) of their existing balance. Those affected employees will also be placed on Civil Service
Reinstatement Registers in accordance with existing rules.
ARTICLE 16
MUNICIPAL COURT
EMPLOYMENT RIGHTS
NON-CIVIL
SERVICE
EMPLOYEES
16.1 Hiring - The Department will hire and promote employees of the Municipal Court Department in
conformance with federal, state and local laws governing hiring practices. Newly hired employees will
serve a one (1) veal' six month (6) probationary period during which period the employee may be
terminated without cause. Any employee terminated during the probationary period will have no
recourse to the grievance procedure.
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 3 I, 2008
FOR RAPAGE 27 OF 33
16.2 Promotional Probation - Newly promoted employee's will serve a six month (6) promotional
probationary period during which time the employee may be'reduced to his or her former position in the
Court at the discretion of the Municipal Court Judge or designee, at the pay step pursuant to 504.1. Any
employee reduced to his/her former position during the promotional probationary period will have no
recourse to the grievance procedure.
16.3 Discipline and Dischan!e - The Department may discipline or discharge an employee for good cause.
"Cause" is hereby defined to be identical to the cause or causes, which are set forth in the Civil Service
Rules governing employees covered by Civil Service.
16.4 Civil Service - The procedures which will be employed by the Department in taking disciplinary action
or in discharging an employee of the Department who is not covered by Civil Service will be identical to
those which are prescribed for use for employees covered by Civil Service with the following
exceptions:
16.4.1 The Department will file all required materials with the Human Resources Manager in lieu of
the Civil Service Officer.
16.4.2 Appeals of the Department's decision will be processed through the Grievance Procedure
-, contained in this agreement.
16.5 Layoff - Employees subject to layoff will be provided thirty (30) calendar days written notice prior to
the effective date of layoff. Layoff of Municipal Court employees will be accomplished by seniority from
date of hire within the series of classifications grouped as follows:
Group 1:
Senior Legal Technician
Legal Technician
Group 2:
Probation Officer
Detention Specialist
16.5.1 Any new classification used in the Department will be placed in a series group by mutual
agreement between the Human Resources Manager Department and the Union. If an employee
of the Department who is covered by Civil Service is to be laid off by seniority, he or she will
exercise their rights under the Civil Service layoff procedures.
16.6 Civil Service Emplovees - Employees covered by Civil Service will be hired, disciplined and
discharged in conformance with Civil Service Rules.
ARTICLE 17
DRUG FREE WORK PLACE
17.1 The maintenance of a drug-free work place is essential to the safety and welfare of City employees. The
following provisions will apply to employees covered by this agreement:
17.2 Controlled Substances -
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January 1,2006 through December 31,2008
FOR RAP AGE 28 OF 33
17.2.1 The unlawful manufacturing, distributing, dispensing, possessing or using of a controlled
substance or alcohol in the work place is prohibited. Reporting to work under the influence of a
controlled substance or alcohol is prohibited.
17.2.2 As a condition of employment, all employees must notify their department head of any criminal
drug statute conviction for a violation occurring in the work place no later than five days after
such a conviction.
17.3 Prescription or Over-the-Counter Dru!! Use - The use of prescription and over-the-counter drugs
which compromise safety in the work place or the quality of the employee's work product is prohibited.
17.4 Employee Sanctions - It is the responsibility of every employee to be aware of the above provisions
and to abide by them. Failure to observe these provisions could result in immediate disciplinary action
against the employee, up to and including termination. The employee may be required to participate
satisfactorily in an alcohol or drug abuse assistance or rehabilitation program.
17.5 Dru!! Abuse Education Pro!!ram - The City will utilize all available City resources, such as the Police
Department's D./\.R.E. program, to educate employees as to the dangers of drug abuse.
'''"'
17.6 Confidentiality - The confidentiality of all complaints and reported violations of the provisions of this
policy will be strictly maintained, except as required by public disclosure laws or court orders.
17.7 The parties have agreed to the City of Bremerton Human Resources Policy 3-20-03 "Drug and Alcohol
Policy" for employees required to have a Commercial Driver's License, with an effective date of January
1, 1996. The parties agree that the City of Bremerton Human Resources Policy #3-20-03" Drug and
Alcohol Policy" will apply to employees not required to have a CDL, however, they will not be subject
to random testing.
ARTICLE 18
BUS PASSES
18.1 The City will provide Kitsap Transit bus passes to employees working in the downtown core who
request bus passes. To be eligible to receive such passes, the employee must ride the bus to and from
work an average of three times a week. The City will establish procedures for the issuance of bus passes
to employees. It shall be understood that an emplovee issued a bus pass is not eligible to receive free
downtown parking.
ARTICLE 19
MANAGEMENT RIGHTS
19.1 Subject only to the limitations expressly stated in this agreement, the Union recognizes that the
Employer retains the exclusive right to manage its business including, but not limited to, the right to
determine the methods and means by which its operations are carried on, to direct the work force and to
conduct its operations in a safe and efficient manner.
ARTICLE 20
WORK STOPPAGES
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January 1,2006 through December 31,2008
FOR RAP AGE 29 OF 33
20.1 STRIKES/LOCKOUTS PROHIBITED- The City and the Union agree that the public interest
requires efficient and uninterrupted performance of all CitY services and to this end pledge their best
efforts to avoid or eliminate any conduct contrary to this objective during the term of this Agreement.
Accordingly, it will be a violation of this Agreement for the City to cause a lockout of its employees or
for the Union to call, encourage, or participate in any strike, sympathy strike, slowdown, or other work
stoppage. Employees engaging in any of the aforementioned activities will be subject to disciplinary
action in accordance with the rules of the Civil Service Commission.
ARTICLE 21
GRIEVANCE PROCEDURE
21.1 Definitions:
'''"'
21.2
21.3
21.4
21.1.1 Grievance - A grievance is an alleged contract violation, question, or challenge raised by an
employee or the Union as to the correct interpretation or application of this Agreement by the
City. Such allegation, question, or challenge is to be resolved through this Grievance Procedure.
21.1.2 Civil Service Appeal- An appeal is an allegation of a violation of the Civil Service Rules
which is to be resolved through the Civil Service Appeals procedure and is not resolvable
through this Grievance Procedure.
Step 1 - An employee or Union representative who believes that a question exists as to the correct
interpretation or application of this agreement will first discuss the action giving rise to the belief with
the immediate supervisor involved within forty-five (45) calendar days of the date the action took place
or within forty-five (45) calendar days of the date upon which the employee could reasonably have been
expected to know of such action. The employee will have the right to be assisted by an authorized
Union representative during this discussion if they request one. The time limits above shall not apply to
payroll errors.
Step 2 - In the event that the immediate supervisor does not resolve the grievance to the satisfaction of
the employee or the Union within a period of fourteen (14) calendar days at Step 1 of this procedure, the
employee or the Union Representative will reduce the grievance to writing and will state: the section (or
sections) of this agreement which is alleged to have been interpreted or applied incorrectly; an
explanation of the grievance in detail, including dates, actions and such other information needed to
understand the facts and circumstances giving rise to the grievance; and the remedy sought. The
employee will have the right to be assisted by an authorized Union representative in reducing his or her
grievance to writing. The employee or Union representative will present the written grievance to the
employee's Department Head within fourteen (14) calendar days of the date the employee received the
immediate supervisor's response. The Department Head will meet with the employee and/or the
employee's Union Representative within fourteen (14) calendar days after receipt of the written
grievance for the purpose of considering the matter. The Department Head will reduce his or her
decision to writing and will transmit the decision to the employee and the Union representative within
fourteen (14) calendar days of meeting with the employee and/or the Union representative.
Step 3 - In the event that the Department Head does not resolve the grievance to the satisfaction of the
employee or the Union representative at Step 2 of this procedure, the employee or the Union
representative will transmit a copy of the original grievance along with a copy of the Department Head's
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January 1,2006 through December 31, 2008
FOR RAPAGE 30 OF 33
21.5
21.6
21.7......
21.8
written response to the Human Resources Manager with a copy to the Mayor within fourteen (14)
calendar days of receipt of the Department Head's written response. The Human Resources Manager
will consider the grievance and may convene a meeting. The Human Resources Manager will reduce his
or her decision to writing within fourteen (14) calendar days ofreceipt of the grievance and transmit the
decision to the Union.
Step 4 - In the event that the Human Resources Manager does not resolve the grievance at Step 3 of this
procedure, the Union may request arbitration of the issue by written notification to the Human Resources
Manager. Immediately thereafter, the parties will petition the Public Employment Relations
Commission (PERC) for a list of nine (9) arbitrators.
Powers and Duties of the Arbitrator - It will be the duty of the arbitrator to conduct a hearing on the
issue or issues submitted by the parties for decision. The hearing will be kept informal and private. The
arbitrator will interpret the provisions of this agreement as they apply to the issue or issues submitted for
decision and will not add to, subtract from nor in any way otherwise alter nor recommend the alteration
of the terms and conditions of the agreement in deciding the matter. As soon as is practicable after
conducting the hearing, the arbitrator will render a written decision which will be binding upon the
parties.
Costs of Arbitration - The expenses of the neutral arbitrator will be borne equally by the parties. Each
party will singly bear all costs related to preparing and presenting its own case before the arbitrator,
including costs of witnesses and attorneys. The party desiring a record of the proceedings will bear the
cost of obtaining such record.
Time Limits - Time limits established in this procedure will be strictly adhered to but may be waived
by mutual agreement of the Union and the City. All procedures contained herein will be complied with
as expeditiously as practicable.
ARTICLE 22
SEVERABILITY
22.1 In the event that any provision of this Agreement is held invalid by operation of law or by any tribunal of
competent jurisdiction, or if compliance with or enforcement of any Article should be restrained by such
tribunal pending a final determination as to its validity, the remaining provisions of this Agreement will
not be held invalid and will remain in full force and effect. The Union and the City will immediately
meet and attempt to renegotiate any provision found invalid.
ARTICLE 23
ENTIRE AGREEMENT
23.1 The Union and the City acknowledge that each has had the unlimited right and opportunity to make
proposals with respect to any matter deemed a proper subject for collective bargaining. The results of
the exercise of that right are set forth in this Agreement. Therefore, the City and the Union each
voluntarily and unqualifiedly agree to waive the right to oblige the other party to bargain with respect to
any subject or matter not specifically covered by the Articles of this Agreement during the term of this
Agreement, except as mutually agreed upon.
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January 1, 2006 through December 3 I, 2008
FOR RAPAGE 31 OF 33
ARTICLE 24
CONFLICTING PROVISIONS
24.1 In the event that any provision of this Agreement is found to be in conflict with any other Resolution,
Ordinance, Policy, Regulation or Rule of the City, the provision of this agreement will prevail.
ARTICLE 25
LABOR MANAGEMENT COMMITTEE
25.1 Labor Management - The City and the Union agree that a need exists for closer cooperation between
labor and management. To accomplish this objective, the Employer and the Union agree that no more
than five (5) duly authorized representatives of the Union will function as one-half (1/2) of a Labor-
Management Committee, the other half being no more than five (5) certain representatives of the City
named for that purpose. The Committee will meet as necessaty at least once every three (3) months for
the purpose of discussing and facilitating the resolution of all problems, which may arise between the
parties. The City will provide a draft of the minutes of the meeting to the Union's Committee members
within (2) two weeks of the meeting. At the Committee's discretion, additional meeting~; may be held.
The Committee will be chaired by a member elected by the Committee.
25.2 Should the Union and Employer mutually agree to change, add, or delete any provIsIOn of this
Agreement, policies or rules, such change will be set forth in writing.
'''"'
ARTICLE 26
JOB SHARING
26.1 Job Sharing - The parties consider job sharing as a potential viable alternative to full time
employment. Jobs may be shared on an hourly, or daily basis.
26.2 All leave for job-sharing employees will be provided on a pro-rated basis. Insurance benefits premium
costs will be determined on a case by case basis; however, the total cost to the City cannot exceed the
cost for a full time employee.
26.3 Job sharing may only be done by mutual agreement of the employees affected and Department Head
or designee. Vacant full time positions may be announced as "Job Sharing" only if agreed to by the
City and Union.
26.4 All time worked by an employee above the base scheduled hours for the position will be considered
overtime, provided, however, that the combined paid hours for the position exceed forty (40) in the
work week.
26.5 Job sharing employees must sign a "Job Sharing Contract" acknowledging their acceptance of
appropriate conditions including the following:
26.5.1 Either job sharing employee may request terminating the contract and returning to full-time
employment. Accommodation of this request shall be subject to the availability of a vacant
position. The remaining employee may be required to work full-time until another "job
sharing" employee can be found, and is approved by the Department Head or designee.
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January 1,2006 through December 31, 2008
FOR RAPAGE 32 OF 33
26.5.2. Job sharing employees agree to work full-time during the absence of the other employee, when
requested.
26.5.3 Regular status for employees "job sharing" will be achieved upon successful completion of
hours worked equivalent to the duration of the probationary period for the classification.
26.5.4. Step increases for "job sharing" employees shall be granted in the same manner as full-time
employees on an equivalent basis,
26.5.5 Other conditions as may be considered necessary by the Department Head or designee may be
made part of the job sharing contract. Provided, however, that they do not alter any terms of
this Labor Agreement or the Civil Service Rules.
26.5.6. The job sharing contract may be terminated at the discretion of the Department Head or
designee in accordance with the Civil Service Rules.
26.5.7. The negotiated job sharing contract will indicate the base schedule to be worked by each
employee and the distribution of insurance benefits premium costs.
"
ARTICLE 27.
TEMPORARY ASSIGNMENT AND SPECIAL ASSIGNMENT
27.1 Temporary Assignment - An employee covered by this Agreement may be temporarily assigned the
duties and responsibilities of a position which has a higher pay classification than his/her regularly
assigned classification in which the incumbent employee is absent due to an extended illness, leave of
absence or other extenuating circumstances, An employee who is temporary assigned to such a position
shall be compensated at five percent (5%) above his/her current pay rate or the first step of the higher
pay rate, whichever is greater. In no case shall an employee be paid more than the top pay step of the
higher classification or serve in a temporary assignment for more than one (1) year. A temporary
assignment may be extended one (1) time, on a case-by-case basis, for up to a maximum of six (6)
months at the discretion of the Department Director. Such extension shall require the concurrence of the
Human Resources Director and the Union. It shall be understood that compensation at the higher pay
rate shall be effective after the completion of forty (40) consecutive hours in the temporary assignment.
The first forty (40) hours of the temporary assignment shall be paid at the employee's regular rate of pay.
Temporary Assignment will not affect an employee's anniversary date for step advancement purposes.
27.2 Special Assignment - An employee covered by this agreement may be placed in a special assignment,
rather than being permanently reclassified to a higher level to allow for employee rotation, to enhance
upward mobility, or for special projects for a period of one (1) calendar year or less. A Special
Assignment may be extended one (1) time, on a case-by-case basis. for up to a maximum of six (6)
months at the discretion of the Depmiment Director. Such extension shall require the concurrence of the
Human Resources Manager and the Union. (LOU dated 8/31/05) Special Assignments shall not to be
used for staffing shortages. Compensation for Special Assignments may be granted up to a maximum of
ten percent 10% above what the current rate of pay is for the employee and requires the approval of the
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 31,2008
FOR RAP AGE 33 OF 33
Human Resources Manager Director. Special Assignment will not affect an employee's anniversary date
for step advancement purposes.
ARTICLE 28
28.1
28.2
28.3
NEW
28.4
28.5
28.6
W ASTEW A TER TREATMENT PLANT - EMPLOYEES
WWTP Operator's License Differential- WWTP Operator's that are required by the employer and/or
choose to have a Washington State Operator's License above Group II will receive Fifty Dollars
($50.00) per month for each current certificate above Group II.
WWTP Operations Supervisor License Differential - WWTP Operation Supervisor's that have a
Washington State Operator's license above Group III, will receive Fifty Dollars ($50.00) per month for
each certification above Group III.
WWTP Operator-in-Charge Differential - When the employer designates a WWTP Operator-in-
Charge for a minimum of one full shift, they will receive a five (5%) percent differential applied to their
base hourly pay for each shift so assigned.
-"
WWTP Maintenance Mechanic-in-Charge Differential - When the employer designates a WWTP
Maintenance Mechanic-in-Charge for a minimum of one full shift. they will receive a five (5%) percent
diHerential applied to their base hourly pay for each shift so assigned.
WWTP Operator Trainee Probationary Period - The probationary period shall be not less than six
(6) months and no more than eighteen (18) months, contingent upon when employee obtains the required
WWTP Operator's license.
Promoted Employees - If between six (6) and eighteen (18) months the employee does not qualify for
WWTP Operator they will be returned to the class they previously held, provided they held such class in
a non-probationary status.
New Hires - If between six (6) and eighteen (18) months the employee does not qualify for WWTP
Operator, the employee shall be terminated.
ARTICLE 29
TEAMSTERS SUPPLEMENTAL PENSION PLAN
The City agrees to allow the bargaining unit employees the opportunity to voluntarily participate in the Teamsters
Supplemental Pension Plan. It shall be understood that participation in this plan shall be strictly voluntary and that
100% of the cost of participation shall be the sole responsibility of the employee.
ARTICLE 30
DOWNTOWN PARKING
Effective as of the first of the month follO\ving ratification of this contract by both the City and the Union, tIhe
City shall provide free parking for all bargaining unit members who are assigned to work on a regular basis in the
downtown area.
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 31,2008
FOR RAPAGE 34 OF 33
NEW ARTICLE -AlJTOMA TIC PROMOTION FROM PLANNER I TO PLANNER 11 AFTER THREE
(3) YEARS
Employees hired as Planner I who successfullv complete three (3) years of employment with the City as a Planner
L upon reaching their third (3rd) year anniversary date. will be automatically promoted to Planner II without Civil
Service testing as long as his/her 3rd year annual evaluation reflects a "Meets Expectations" or higher rating. If a
Planner I fail to receive their ]rd veal' alU1ua] evaluation in a timely manner. it shall be assumed that their
perfomlance "Meets Expectations" and they will be promoted to Planner n. This shall apply retroactively to any
employee in a PlaImer I classification as of the date of ratification of this contract. This does not preclude the City
from promoting a Planner I to a Planner 1I position through the normal Civil Service promotional testing process
prior to reaching his/her 3rd veal' anniversary.
ARTICLE 31
TERM
31.1 This Agreement will become effective upon January 1, 200Q4 and will remain in effect through
December 31, 200~;). All requests to amend, modifY or terminate this Agreement will require either
party to file written notice upon the other at least one hundred eighty (180) days prior to December 31,
2008;).
"
This agreement is hereby submitted to the Bremerton City Council by the City representative and the Union
representative for the Council's consideration and approval. Upon approval, this agreement will become binding
upon the City, the Union and all of the employees in the bargaining unit covered by this agreement.
APPROVED by the Bremerton City Council on the +8#t
day of August
, 200Q4.
Signed this
day of
, 200Q4
FOR THE CITY OF BREMERTON
FOR GENERAL TEAMSTERS LOCAL UNION #589:
Carol S. Conley, Human Resources Manager
Kenneth P. Troup, Business Representative
By
Honorable Cary Bozeman, Mayor
Approved as to Form:
Attest:
Roger Lubovich, City Attorney
Paula Johnston, City Clerk
COLLECTIVE BARGAINING AGREEMENT for ratification
CITY OF BREMERTON, WASHINGTON & TEAMSTERS LOCAL NO. 589
January I, 2006 through December 3 I, 2008
FOR RAPAGE 35 OF 33
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"'^'~'-.'^ ""'~WT'd mooNm" .,
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C:\Documents and Settings\CONLEY.BREMERTON\Local Settings\Temporary Internet Files\OLK12\Teamsters Appendix A - Detail - 2006 Jan 1 20062.311
6/26/2006 11 :29 AM 2
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PC Technician ()IIj()LJ~ly
Si91l~~()p~Elr\fice Sp,E1c~.~r~ .. Base +1 %
StreE1ts~er\fice~PE1<:.~r. '.' .~ase +2%
iJtiliti~~ Cu~t~~~r SerYic~R~r~~se +3"1?,~
Utilities~E1r\ficEl..~PEl.<:~~r,: ....: !?~~~.+4%
"",~tE1rQpE1~at()E.~E:... ...............
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Grade 14
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c;()fl:1fl:111lli!Y.'3:Elsource Sp'ec.
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: Sefl:1i:rJI<?l1.thly
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Assistant Network Admin.
Customer Service/PC Tech.
~,-"~"~v""""-~~"<""' _
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.~1l9iIlElEl.~i.!:'.g.!echnician IV
Environmental Technician
~()lIEney~e"el~lectrician : Base +2%
LEla~,"llt()EIl()tiyeECluip'.~!ech Base +3%
Lea~Utili!iE1.~..~e.r\fice~PE1c.~ Base +4%
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C:IDocuments and SettingsICONLEY.BREMERTONILocal SettingslTemporary Internet FileslOLK121Teamsters Appendix A - Detail. 2006 Jan 1 20062.311
6/26/2006 11 :29 AM 3
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C:\Documents and Settings\CONLEY.BREMERTON\Local Settings\Temporary Internet Files\OLK12\Teamsters Appendix A - Detail. 2006 Jan 1 20062.311
6/26/2006 11 :29 AM 4
DATE SUBMITTED: June 21, 2006
BILL # 0(9- \ti3
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
'A
........................................................................................
SUBJECT: Bid award and approval of
contract with Berschauer Phillips
Construction Company for the Bremerton
Police remodel and addition at Burwell and
Chester.
Committee Meeting Date: 6/28/2006
COUNCIL MEETING Date: 7/5/2006
Department: Economic Dev.
Presenter: Gary Sexton
Phone: 360-473-5282
SUMMARY: A call for bid was issued and two bids were received for the remodel and addition of
the Bremerton Police Station. The architect's estimate was $1,247,050 including alternates. The low
responsive base bid without alternates was received from Berschauer Phillips in the amount of
$1,495,417 plus sales tax. Bid alternates 1 through 10 totalled $$468,828. It is recommended that the
bid be awarded to Berschauer Phillips with additive 4 (asphalt coating) in the sum of $4,979 and
additive 5 (paint existing metal siding) in the sum of $2,081.
,,~TTACHMENTS: Bid Tabulation
FISCAL IMP ACTS (Include Budgeted Amount): This project is funded by the Public Safety Bond
proceeds and is included in the 2006 budget.
APPROVALS:
DEP ARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MA YOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
I CONSENT AGENDA D I
RECOMMENDED MOTION: I move City Council approve award of the bid to Berschauser
Phillips for construction of Bremerton Police Station at Burwell and Chester for a total bid of
$1,495,417 plus sales tax of$128,605 for a total of$1,624,022.00 plus additive 4 (asphalt coating) in
the sum of $4,979 and additive 5 (paint existing metal siding) in the sum of $2,081 and authorize the
Mayor to finalize and execute a contract for the same.
COUNCIL ACTION: 0 Approve 0 Deny 0 Table
o Continue 0 No Action
CITY OF BREMERTON
BID TABULATION
EllD rITLE_n,el/ll!~ fJ lic.-(!. JS u ; L~"
OPENEDBY:~Mj~ JOJM)~
DATE OPENED: - ~ - /3-0 t., - TIME OPENED: ;2: 03 fl;tA..;
~~ . -
~u )O~ ~iW~5 .
BOND ITEM 1 ITEM Z ITEM)"-
I ;2
REcqRDED BY: !?ud~ ~ ~
NAME OF BIDDER
_SALES
TAX
TOTAL ----I
-1
_~__~u(e(' Ph ~ l{ \~
-XlvJSfJ .~ D
SUMMARY
APPARENT LOW BIDDER
TOTAL BID
COMMENTS
ENGINEER ESTIMATE ONe SA\-ES TAX) $
/,;;( 5V. 060 lk'-(' ( Adc1c'f(VL-S'
" ..
SECOND LOW BIDDER
THIRD LOW BIDDER
CONTRACT
PAGE 1 of3
THIS AGREEMENT is dated the day of
by and between City of Bremerton (hereinafter called CITY) and
in the year 2006
Berschauer Phillips Construction Company
(hereinafter called CONTRACTOR).
CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as
follows:
ARTICLE 1. WORK.
CONTRACTOR shall complete the WORK as specified or indicated in the CITY's Contract
Documents entitled Bremerton Police Building.
ARTICLE 2. CONTRACT TIMES.
The WORK shall be completed within 180 calendar days from the commencement date stated in
the Notice to Proceed.
ARTICLE 3. LIQUIDATED DAMAGES.
CITY and the CONTRACTOR recognize that time is of the essence of this Agreement and that the
CITY will suffer financial loss if the WORK is not completed within the time specified in Article 2
herein and Special Provision 1-08.5, plus any extensions thereof allowed in accordance with
Section 1-08.8 of the Standard Specifications which may be modified by the Special Provisions.
They also recognize the delays, expense; and difficulties involved in proving in a legal proceeding
the actual loss suffered by the CITY if the WORK is not completed on time. Accordingly, instead of
requiring any such proof, the CONTRACTOR shall pay the CITY liquidated damages for each day
that expires after the time specified in Article 2 herein and Special Provision 1-08.5 for Substantial
Completion and Final Completion of the WORK in accordance with Section 1-08.9 of the Standard
Specifications as may be modified by the Special Provisions.
ARTICLE 4. CONTRACT PRICE.
CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract
Documents in the amount of the base bid $1,495,417, plus alternate 4 (asphalt coating) in the sum
of $4,979 and alternate 5 (paint existing metal siding) in the sum of $2,081 plus state sales tax.
ARTICLE 5. PAYMENT PROCEDURES.
CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the
Standard Specifications which may be modified by the Special Provisions. Applications for
Payment will be processed by ENGINEER as provided in the Special Provisions
Contractor Initials
CONTRACT
PAGE 2 of 3
ARTICLE 6. CONTRACT DOCUMENTS.
The Contract Documents which comprise the entire agreement between CITY and CONTRACTOR
concerning the WORK consist of this Contract (pages Contract-1 to Contract-3, inclusive) and the
following attachments to this Contract:
· Notice Inviting Bids,
· Bidders Checklist,
· Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and
all required certificates and affidavits,
· Performance Bond,
· Payment Bond,
· Standard Specifications,
· Special Provisions,
· Contract Plans,
· Addenda numbers 1 to 3, inclusive.
· Change Orders which may be delivered or issued after Effective Date of the Agreement
and are not attached hereto.
· All other provisions as listed in the Table of Contents for Bremerton Police Building
There are no Contract Documents other than those listed in this Article 6. The Contract Documents
may only be amended by Change Order as provided in Section 1-04.4 of the Standard
Specifications which may be modified by the Special Provisions.
ARTICLE 7. INDEMNIFICATION.
The CONTRACTOR and CITY acknowledge and agree that they have negotiated the following in
accordance with the requirements of RCW 4.24.115 and the CONTRACTOR specifically waives his
immunity under industrial insurance under Title 51 RCW. To the fullest extent permitted by Laws
and Regulations, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY, their
consultants, subconsultants, and the officers, directors, employees, and agents of each and any of
them, against and from any and all claims, injuries, damages, losses or suits, including all legal
costs and attorney fees, all claims and liability arising under, by reason of, related, or incidental to
the Contract Documents or any performance of the WORK, but not from the negligence or willful
misconduct of the CITY as further defined in the Contract Documents. The provisions of this
section shall survive the termination of the contract.
Contractor Initials
CONTRACT
PAGE 3 of 3
ARTICLE 8. ASSIGNMENT
No assignment by a party hereto of any rights under or interests in the Contract Documents will be
binding on another party hereto without the written consent of the party sought to be bound; and
specifically but without limitation monies that may become due and monies that are due may not be
assigned without such consent (except to the extent that the effect of this restriction may be limited
by law), and unless specifically stated to the contrary in any written consent to an assignment, no
assignment will release or discharge the assignor from any duty or responsibility under the Contract
Documents. The CITY, in its sole discretion, may refuse to allow the CONTRACTOR to assign any
or all of its duties, rights and/or responsibilities under the Agreement, except with regards to an
assignment of funds for security purposes. In the case of an assignment for security purposes the
CITY may condition its approval to the extent it deems necessary to assure that there will be
adequate funds to complete the WORK and to pay subcontractors and suppliers.
CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal
representatives to the other party hereto, its partners, successors, assigns and legal
representatives in respect of all covenants, agreements and obligations contained in the Contract
Documents.
IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be executed
the day and year first above written.
CITY: City of Bremerton
CONTRACTOR: Berschauer Phillips
Construction Company
By
By
[CORPORATE SEAL]
Attest
Attest
Address for giving notices
Address for giving notices
345 6th Street. Suite 600
Bremerton. WA 98337
License No.
DATE SUBMITTED: 6-7-06
AB#06-138
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
lD&
mB~B..BDmaDmm.D.maaaaSBaaBBBBaaa.a8mR.amaaBmB....m....aaa......amBB.m..ammmcDcmsamu.ODal
SUBJECT: Ordinance No.lf97S'" amending
certain sections ofBMC Chapter 2.76
Procurement & Disposal Code and repealing
certain ordinances relating to purchase and
sale of goods, services and property
Committee Meeting Date: 6-14-06
COUNCIL MEETING Date: 7-5-06
Department: City Attomey
Presenter: Roger Lubovich
Phone: 473-2345
SUMMARY: Staff is recommending that Chapter 2.76 - Procurement & Disposal Code ofthe
Bremerton Municipal Code be amended to clarify the definition of bid splitting. Also, the proposed
ordinance repeals certain ordinances that related to the older version of Chapter 2.76 that was replaced
upon the passage of Ordinance 4934 in March 2005.
., .."
ATTACHMENTS: Proposed Ordinance and Policy No. 1-20-03
FISCAL IMPACTS (Include Budgeted Amount): No direct fiscal impact. A...~Lvdl':ation wili'
cnlumee ftcco\lfiting 8fi1ci"m",~t,;::> Clud vvi~fivClL~VH thEH pLUI,.;"'L&mcn.t~ at'- to ",,(JdG~'-"I/O"
APPROVALS:
DEP ARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
~~~ I CONSENT AGENDA D I
2/~:C~/A'
RECOMMENDED MOTION:
Move to pass Ordinance No.1 Q7S amending certain sections of Chapter 2.76 of the
Bremerton Municipal Code relating to procurement of goods and services and further repealing
certain ordinances relating to the pur,chase and sale of goods, services and property.
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
COUNCIL ACTION: 0 Approve 0 Deny 0 Table
o Continue 0 No Action
ORDINANCE NO. &..\q1~
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending certain sections of Chapter 2.76
of the Bremerton Municipal Code relating to procurement of goods
and services, and further, repealing certain ordinances relating to
the purchase and sale of goods, services and property.
WHEREAS, the City Council desires to amend provisions of Chapter 2.76 of the
Bremerton Municipal Code relating to procurement of goods and services and the contract
approval authority for purchases and make other related amendments, and
WHEREAS, the City Council, as a housekeeping measure, desires to repeal
certain ordinances relating to the purchase and sale of goods, services and property; NOW
THEREFORE,
''"' THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 2.76.100 ofthe Bremerton Municipal Code entitled
"Purpose" is hereby amended to read as follows:
2.76.010 PURPOSE
It is the purpose ofthis policy chapter to provide guidelines for the purchase of goods and
services by the City in order to maintain an efficient and accountable purchasing process. It is
also the purpose of this policy chapter to allow for the flexible application of these guidelines for
more efficient and cost-effective purchases where their strict application would not be in the
City's best interest, such as, for example, in those instances where requests for bids or quotations
would not be appropriate due to a sole source supplier or where negotiations with a particular
supplier would be more appropriate due to a specialized need of the City.
SECTION 2. Section 2.76.040 ofthe Bremerton Municipal Code entitled
"Requests for Bids and Bid List" is hereby amended to read as follows:
2.76.040 REQUESTS FOR BIDS AND BID LISTS.
Requests for bids required in this section shall be solicited for the purpose of establishing
comparable and competitive bid pricing and the best price for the proposed purchase. Bids
received in response to such requests for bids shall be documented and submitted, along with any
other relevant material, to the approving authority as set forth in BMC 2.76.G60100. Bids for
purchases shall be obtained as follows:
(a) Purchases ofTen Thousand Dollars ($10,000) or Less. Any contract for which the
estimated cost to purchase goods or services is ten thousand dollars ($10,000) or less shall be
entered into pursuant to such terms and conditions as may be authorized by the Director.
Purchases under this subsection are not required to be entered into pursuant to solicitation or
requests for bids and may be entered into through direct negotiations.
I
Procurement and Disposal
2006 Amendment
(b) Purchases over Ten Thousand Dollars ($10,000) but Not Exceeding Twenty-Five
Thousand Dollars ($25,000). If it appears that the estimated cost of a contract to purchase goods
or services, other than professional and consulting services, will be over ten thousand dollars
($10,000) but not exceeding twenty-five thousand dollars ($25,000), the Director may contract as
follows:
(1) Telephone and/or Written Bids. Solicit, obtain and document telephone
and/or written comparable bids for each purchase from at least three (3) sources. Ifless than
three (3) vendors are available for bids after reasonable attempts, then such shall be documented
and bids may be obtained from the available sources;
(2) Bid Lists. For regularly made purchases, a list of comparable bids may be
maintained and updated periodically and purchases made from that list without soliciting bids for
each such purchase;
(3) Written Request for Bids. Request in writing, and obtain from at least
three (3) sources, written comparable bids for each purchase. Requests for bids should be in
writing and contain appropriate specifications and terms of purchase as may be applicable. Ifless
than three (3) vendors are available for bid after reasonable attempts, then such shall be
documented and bids may be obtained from the available sources; or
", (4) Advertised Request for Bids. Publish notice calling for bids in a
newspaper of general circulation most likely to bring responsive bids at least ten (10) days before
entering into that contract. The notice shall generally state the nature of the contemplated
purchase and the description or specifications thereof, and it shall require that the bids be filed
with the City Clerk or other designated office of the City within the time specified therein.
(c) Purchases over Twenty-Five Thousand Dollars ($25,000). If it appears that the
estimated cost of a contract to purchase goods or services, other than professional and consulting
services, will be over twenty-five thousand dollars ($25,000), the Director may contract for
purchase as follows:
(1) Written request for bids pursuant to subsection (b )(3) ofthis section; or
(2) Advertised request for bids pursuant to subsection (b)( 4) of this section.
(d) A ward of Contract on Best Bid. Subject to the authorization requirements set
forth in BMC 2.76.100, the Director may:
(1) A ward a contract for purchase to the best bid as defined in BMC
2.76.030(a) in response to a solicitation or request for bid pursuant to this section;
(2) Reject any and all bids; and/or
(3) Enter into direct negotiations with a bidder to modify the product or
service to be purchased or to obtain a more favorable price or terms for the City.
If an award of a contract for goods and services is made to a supplier who is not the lowest
bidder, then the reason for awarding the contract to another supplier shall be documented
(delivery time, warranty, the bid did not meet the product or service requirements of the City, or
specific product line preferred for uniform equipment fleet, etc.).
(e) Local Preference Purchase for Goods. When reviewing bids for purchase, all
things being equal when considering factors such as product quality, delivery, warranty or
service provided, there is a preference to purchase from a local supplier. A local supplier is a
supplier having an office or facility located in Kitsap County and licensed to do and doing
business in the county.
(f) Contracts with Other Public Entities. In lieu of the requirements for requests for
bids pursuant to this section, the City may, pursuant to an interlocal agreement with another
2
Procurement and Disposal
2006 Amendment
public entity which has entered into a contract with a supplier pursuant to an advertised request
for bid, contract with said supplier on similar terms for the purchase of materials, supplies or
equipment.
SECTION 3. Section 2.76.080 of the Bremerton Municipal Code entitled
"Determining Cost of Contract" is hereby amended to read as follows:
2.76.080 DETERMINING COST OF CONTRACT.
To determine the cost of a contract for the purpose of establishing the appropriate
purchasing procedures under this chapter, when the contract has no definite term or unit amount
such as a supply contract or blanket purchase order, the amount of each individual purchase shall
determine the appropriate purchasing procedures. Contracts may not be split to avoid the bidding
and authorization requirements set forth in this chapter. Bid splitting includes the inappropriate
division of a purchase into separate units for purchase and/or over a period of time merely for the
purpose of avoiding the required approval processes. Bid splitting does not include the purchase
of goods or services by different City departments or offices for unrelated proiects or purposes.
" SECTION 4. A new section, Section 2.76.160, of the Bremerton Municipal
Code entitled "Policies and Procedures" relating to purchasing is hereby created to read as
follows:
2.76.160 POLICIES AND PROCEDURES.
The Mayor is authorized to establish and implement policies and procedures deemed
appropriate for the administration of this Chapter. These policies and procedures shall be set
forth in City policy No. 1-20-03.
SECTION 5. Ordinances repealed. Ordinances No.'s 4492,4562,4610,4682,
4702,4737 and 4868 relating to purchasing procedures and property disposal and Ordinance No.
4475 relating to real property purchases and disposal are hereby repealed in their entirety.
SECTION 6. Severability. If anyone 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 7. 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.
PASSED by the City Council the
day of
,2006
CECIL McCONNELL, Council President
3
Procurement and Disposal
2006 Amendment
Approved this
day of
,2006
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
PAULA JOHNSTON, City Clerk
ROGER A. LUBOVICH, City Attorney
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of
day of
,2006
,2006
",
R:\Legal\Legal\Ordinances\Finance\Purchasing 2006 Amendmentdoc
4
Procurement and Disposal
2006 Amendment
CITY OF BREMERTON PROCUREMENT & DISPOSAL OF
PERSONAL PROPERTY
INDEX EFFECTIVE DATE: 7/19/06 APPROVED
REVIEW DATE:
1-20-03 REVISED DATE: 7/19/06
Repeals & Replaces 4-1 CARY BOZEMAN, Mayor
Through 4-8, inclusive
REFERENCE
PURPOSE
"
CONTRACT /
PURCHASE
THRESHOLDS,
AUTHORITY LEVELS
& APPROV ALS
CONTRACT
DEFINITIONS,
DESCRIPTIONS &
GUIDELINES
RCW 39.80
BMC 2.76
To maintain an efficient and accountable purchasing process and to allow for
flexible application of these guidelines in order to meet specialized needs of the
City or facilitate sole source purchases. To establish thresholds and methods of
disposing of personal property.
Refer to attached Table 1-20-03 (A). This table breaks out the components
ofBMC Chapter 2.76 into dollar thresholds, essential levels of authority and
approval methods.
A. Contracts for Professional Eneineerine, Survevine,
Architectural, and Landscape Architectural Services
Professional services rendered by any person, other than an employee of the
City, contracting specifically to perform engineering, surveying, architectural
or landscape architectural services as defined in RCW 18.08, 18.43 and/or
18.96. To contract for these services, the City must follow the procedures
outlined in RCW 39.80.
B. Contracts for Professional Services Otlter Titan
Eneineerine, Survevine, Architectural and/or Landscape Architectural
Services
For other professional services not specifically falling under the requirements
ofRCW 39.80 as specified above, the City may negotiate an acceptable
contract with any individual or firm deemed most qualified by the City to
provide the required services. As a guideline, the following definition should
be used in determining what constitutes a "professional service:"
"Work rendered by an independent contractor who has a
professed knowledge of some department of learning or
science used by its practical application to the affairs of others
or in the practice of an art founded on it, including but not
H:\My Documents\Purchasing Policy-Procedure 6-29-06.doc
Page 1 of3
limited to lawyers, doctors, dentists, veterinarians, architects,
engineers, landscape architects, and accountants. A profession
is a vocation founded upon prolonged and specialized
intellectual training which enables a particular service to be
rendered. The word "professional" implies professed
attainments in special knowledge as distinguished from mere
skill. "
C. Services
Services are activities or projects requiring labor which are contracted for on a
periodic and/or routine basis but do not qualify as "public works" (constmction,
alteration, repair or improvement to property) or "professional services"
(engineering, architectural, consulting, computer programming, etc. requiring
specific formal education or technical expertise). Services include but are not
limited to such things as:
",
~
~
~
~
~
~
~
~
Building and grounds maintenance
Janitorial services
Snow and ice removal
Office equipment/computer maintenance
Copying services
Printinglbinding services
Courier services
Office/clerical services
The City is generally not required to competitively bid services. However, the
City will normally follow the "competitive negotiation" process as outlined in
BMC Section 2.76.040 to ensure that the City obtains the most qualified
contractor at the best possible price. As an alternative, the City may
competitively bid contracts for services or, if it is determined to be in the City's
and/or public's best interest, may negotiate directly with a qualified contractor
for award of a contract for services. Refer to BMC Section 2.76.040 for
acceptable methods of obtaining bids commensurate to the dollar amount of the
contract.
Service contracts over $25,000 must be approved by the City Council. All
service Contracts shall be reviewed by the City Attorney's Office and must be
executed on the City's standard contract forms unless otherwise approved in
advance by the City Attorney's Office.
D. Purchase Contracts for Materials/EQuipment/Supplies
Purchase contracts for the purchase, lease or rental of materials, equipment or
supplies should follow the dollar limits and bid procedures found in BMC
Section 2.76.040 in order to establish comparable and competitive bid pricing
and the best price for the proposed purchase. A supply contract for unspecified
unit amounts can be executed in lieu of requesting bids for each purchase or
maintaining bid lists. A supply contract must have a specified term and a
maximum cumulative spending limit. Capital leases are not permitted. Prior to
entering into any lease obligation, contact the City's Finance Officer (ext 5296)
H:\My Documents\Purchasing Policy-Procedure 6-29-06.doc
Page 2 of3
."
PERSONAL
PROPERTY DISPOSAL
to determine if the lease is allowable.
Purchase contracts for the purchase, lease or rental of materials, equipment or
supplies over $25,000 must be approved by the City Council. All purchase
contracts shall be reviewed by the City Attorney's Office and must be executed
on the City's standard contract forms unless otherwise approved in advance by
the City Attorney's Office,
E. State Contracts and Contracts with other Public Entities
State Contracts are contracts awarded by the State of Washington through a
competitive bidding process for materials, equipment, supplies or services
which are available to public agencies, such as cities, throughout the State,
These contracts allow the City to contract with the supplier or contractor
directly under the terms of the particular State Contract for the required
materials or services without the City having to go through the competitive
bidding process again.
In the same fashion, the City may enter into an interlocal agreement with
another public entity whereby that agency has already entered into a contract
with a supplier pursuant to an advertised request for bid; and, subsequently, the
City can execute a contract with the same supplier on similar terms for the
purchase of materials, supplies or equipment, thus, foregoing the competitive
bidding process.
Contracts obtained in the manners stated above still need to follow the approval
process outlined in BMC Section 2.76.100. All vendor contracts executed off a
state contract shall be reviewed by the City Attorney's Office and must be
executed on the City's standard contract forms unless otherwise approved in
advance by the City Attorney's Office.
Refer to attached Table 1-20-03 (B). This table breaks out the components
ofBMC Chapter 2.76 into dollar thresholds, essential levels of authority and
approval methods.
H:\My Documents\Purchasing Policy-Procedure 6-29-06.doc
Page 3 of3
CONTRACT/PURCHASE THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2.j.6
TABLE 1-20-03 (A)
Contract or Purchase Management Authority & Criteria for Selection Approvals Filing Procedures
Ordinance / RCW
1. Purchase of Directors or Designees can approve contracts up to Director Departments can retain contract documents.
Services, Materials or $25,000. City Clerk filing is not required.
Equipment $10,000 or Direct Negotiations.
less Exempt from solicitations.
No Capital Leases allowed. (Contact City's Finance
BMC2.76.040(a) Officer (ext 5296) prior to entering into any lease agrmt)
2. Purchase of Director or Designees can contract up to $25,000 as Director Contracts of$10,000 or more must be in
Services, Materials or follows: writing and filed with City Clerk.
Equipment over A) Document Telephone or Written Comparable Bids
$10,000 but not from at least three (3) sources, or;
exceeding $25,000 B) Use Comparable Bid Lists that have been maintained
and updated periodically, or;
BMC2.76.040(b) & (d) C) Request in Writing from at least three (3) sources
written comparable bids. Request must include
specifications and terms of purchase, or;
D) Advertise Request for Bids in newspaper of general
circulation most likely to reach responsive bidders ten
(10) days before entering into contract. Must include
specifications and terms of purchase. Bids to be filed
with City Clerk or designated office within a specified
time.
E) Director can Award Contract on Best Bid based upon
response to solicitation, or; reject all bids, or; enter in
direct negotiations with identified best bidder.
No Capital Leases allowed. (Contact City's Finance
Officer (ext 5296) prior to entering into any lease agrmt)
6/29/2006
Page 1 of5
Contract or Purchase
Ordinance / RCW
3. Purchase of
Services over $25,000
BMC2.76.040(c) &(d)
BMC 2.76.100(c)
4. Purchase, Lease or
Rental of Materials,
Equipment or Supply
Contracts over
$25,000
BMC2.76.040(c) & (d)
BMC 2.76.100(c)
5. Professional or
Technical Services/
Consultants Contracts
$10,000 or less
BMC 2.76.060
BMC2.76.100(a)
RCW 39.80 may apply
(see No.8)
6/29/2006
Page 2 of5
CONTRACT/PURCHASE THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2.];6
TABLE 1-20-03 (A)
Management Authority & Criteria for Selection
Director or Designees can prepare contract over $25,000
(subject to Council approval) as follows:
1) Written Request for Bids pursuant to 2.(C)
above, or;
2) Adveliise Request for Bids pursuant to 2.(D)
above.
Award Contract on Best Bid (subject to Council
Approval) based upon response to solicitation, or; reject
all bids, or; enter in direct negotiations with identified
best bidder.
Director or Designees can prepare contract over $25,000
(subject to Council approval) as follows:
I)Written Request for Bids pursuant to 2.(C) above,
or;
2)Adveliise Request for Bids pursuant to 2.(D)
above.
Award Contract on Best Bid (subject to Council
Approval) based upon response to solicitation, or; reject
all bids, or; enter in direct negotiations with identified
best bidder.
Directors or Designees can approve contracts up to
$25,000.
Direct Negotiations.
Exempt from solicitations.
Must be a firm recognized for experience within a
specialized area of expertise.
Approvals
Filing Procedures
City Council
Schedule & prepare agenda bill for Council
approval
City Council
Schedule & prepare agenda bill for Council
approval
Director
Departments can retain contract documents.
City Clerk filing is not required.
CONTRACT/PURCHASE THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2}fJ
TABLE 1-20-03 (A)
Contract or Purchase Management Authority & Criteria for Selection Approvals Filing Procedures
Ordinance / RCW
6. Professional or Directors or Designees can approve contracts up to Director Contracts of$10,000 or more must be in
Technical Services/ $25,000. writing and filed with City Clerk.
Consultants Contracts Direct Negotiations.
up to $25,000 Exempt from solicitations.
Must be a firm recognized for experience within a
BMC 2.76.060 specialized area of expertise.
BMC2.76.100(a)
RCW 39.80 may apply
(see No.8)
7. Professional or Direct Negotiations. City Council Schedule & prepare agenda bill for Council
Teclmical Services/ Exempt from solicitations. approval
Consultants Contracts Must be a firm recognized for experience within a
over $25,000 specialized area of expertise.
BMC 2.76.060
BMC2. 76.1 OO( c)
RCW 39.80 may apply
(see No.8)
6/29/2006
Page 3 of5
CONTRACTIPURCHASE THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2.')6
TABLE 1-20-03 (A)
Contract or Purchase Management Authority & Criteria for Selection Approvals Filing Procedures
Ordinance / RCW
8. Professional Same as 5 - 7 above except that statute requires: (1) City Council $10,000 to $25,000 file with City Clerk.
Services advance publication of City requirements for services;(2) Required over Over $25,000 same as 7. above.
Engineers, Surveyors, potential contractors must submit qualifications; $25,000
Architects & (3)selection by City of most qualified without
Landscape Architects consideration of cost/price (4 )negotiation of contract
(as defined in RCW with most qualified contractor
18.08, 1843, 18.96)
BMC2.76.020(b)
BMC 2.76.100
BMC 2.76.110
RCW 39.80
9. Change Orders for Mayor can approve up to 30% of original contract Mayor Filed with the City Clerk
Contracts less than amount not to exceed change order limit of$30,000
$100,000 (min 0 - max $30,000) City Council for
Must be within scope of the project all Change Orders
BMC 2.76.110 Consistent with initial bid process, if any exceeding
Executed in writing approved limits
Value of all change orders must be aggregated
1 0.. Change Orders for Mayor can approve up to 20% of original contract Mayor Filed with the City Clerk
Contracts from amount not to exceed change order limit of $1 00,000,
$100,000 to $500,000 but with a minimum of$30,000 City Council for
(min $30,000 - max $100,000) all Change Orders
BMC 2.76.110 Must be within scope of the project exceeding
Consistent with initial bid process, if any approved limits
Executed in writing
Value of all change orders must be aggregated
6/29/2006
Page 4 of5
CONTRACTIPURCHASE THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2.}6
TABLE 1-20-03 (A)
Contract or Purchase Management Authority & Criteria for Selection Approvals Filing Procedures
Ordinance / RCW
II..Change Orders for Mayor can approve up to 10% of original contract Mayor Filed with the City Clerk
Contracts greater than amount not to exceed change order limit of $200,000,
$500,000 but with a minimum of$100,000 City Council for
(min $100,000 - max $200,000) all Change Orders
BMC 2.76.110 Must be within scope of the project exceeding
Consistent with initial bid process, if any approved limits
Executed in writing
Value of all change orders must be aggregated
6/29/2006
Page 5 of5
PERSONAL PROPETY DISPOSAL THRESHOLDS, AUTHORITY LEVELS
AND APPROVALS for BMC 2J6
TABLE 1-20-03 (B)
Personal Property Management Authority & Criteria for Selection Approvals Filing Procedures
Disposal
Ordinance / RCW
1. Surplus Personal Directors or Designees must certify personal property for Director Departments can retain disposition
Propeliy of $25,000 or disposition documents. City Clerk filing is not
less Methods of disposition are: required.
Public auction
BMC 2.76.150 Solicitation of bids
RCW's cited in BMC Negotiated sale for approximate fair market value
2.76.150(d) Transfer to government agency pursuant to BMC
2.76.150(d)
2. Surplus Personal Directors or Designees must prepare personal propeliy City Council Schedule and prepare agenda bill for
Property over $25,000 disposition using one of the Methods listed above for Council approval
Council action. Council may:
BMC 2.76.150 Approve the disposition
RCW's cited in BMC Approve the disposition with conditions
2.76.150(d) Disapprove of disposition and give Director further
direction
6/5/2006
Page 1 of 1
ORDINANCE NO. 4934
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, repealing and replacing. Chapter 2.76 of
the Bremerton Municipal Code entitled "Purchasing Procedures"
and Chapter 2.79 entitled "Personal Property Disposal" with a new
Chapter 2.76 entitled "Procurement and Disposal Code" relating to
updated procedures for the purchase of materials, supplies,
equipment or services or the lease or rental of equipment and for
the disposal of property.
WHEREAS, the current provisions of Chapter 2.76 of the Bremerton Municipal
Code relating to purchasing procedures often results in inefficient purchasing of goods and
services such as delays in purchasing and the inability to take advantage of discounted products
and unique purchases; and
"
WHEREAS, the City Council desires to update the provisions of Chapter 2.76 of
the Bremerton Municipal Code by repealing said chapter in its entirety and replacing it with a
new chapter providing for updated purchasing procedures for more efficient purchasing practices
while at the same time providing for accountability for said purchases; and
WHEREAS, the City Council also desire to update the provisions of Chapter 2.79
of the Bremerton Municipal Code relating to the disposal of property and consolidate these
provisions with the updated purchasing provisions; NOW TIIEREFORE,
TIIE CITY COUNCIL OF TIIE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.76 of the Bremerton Municipal Code entitled
"Purchasing Procedures" is hereby repealed in its entirety.
SECTION 2. Chapter 2.79 of the Bremerton Municipal Code entitled "Personal
Property Disposal" is hereby repealed in its entirety.
SECTION 3. There is hereby created a new Chapter 2.76 of the Bremerton
Municipal Code entitled" Procurement and Disposal Code" to read as follows:
CHAPTER 2.76
PROCUREMENT AND DISPOSAL CODE
2.76.010 PIJRPOSE. It is the plLrpose of this policy to provide guidelines for the
purchase of goods and services by the City in order to maintain an efficient and accountable
purchasing process. It is also the purpose of this policy to allow for the flexible application of
1
Procurement and Disposal Code
these guidelines for more efficient and cost effective purchases where their strict application
would not be in the City's best interest, such as, for example, in those instances where requests
for bids or quotations would not be appropriate due to a sole source supplier or where
negotiations with a particular supplier would be more appropriate due to a specialized need of
the City.
2.76.020 APPLICABILITY. Any contract, written or oral, for the purchase of
materials, supplies, equipment or services or the lease or rental of equipment shall be subject to
the provisions of this chapter; provided that, except for the requirements set forth in Sections
2.76.100 and 2.76.110 below relating to authorization by the mayor and city council, the
limitations contained in this policy do not apply to:
(a) Public works or improvement contracts which shall be entered into pursuant to
RCW 35.22.620 as currently enacted and as hereinafter amended.
(b) Contracts for architectural and engineering services governed pursuant to Chapter
39.80 RCW as currently enacted and as hereinafter amended.
( c) Purchases of materials at auctions conducted by the United States government or
any agency thereof, or by the State of Washington and any of its political subdivisions.
"
2.76.030 DEFINITIONS.
For the purposes of this chapter, the following defInitions will apply:
(a) "Best bid" shall mean a bid that is the best value to and in the best interests of the
city when considering items such as price, available discounts, the product or service purchased
including any alterations or modifIcations thereto, shipping, time of delivery, warranty and other
terms of purchase, and any other factors relevant to the purchase. Best bid does not necessarily
mean lowest price.
(b) "Bid" shall mean an offer or quotation to provide goods and/or services at a
specifIed price.
(c) "Contract" or "Contract for purchase" shall mean a purchase from a wholesaler,
retailer or dealer, or other similar transaction for the purchase of goods and services.
(d) "Director" shall mean director of the department for which the contract for
purchase is made, authorized purchasing agent, or his or her designee.
( e) "Director of Financial Services" shall mean director of the Department of
Financial Services, or his or her designee.
(f) "Emergency" shall mean any. situation where public health, safety and welfare are
endangered.
(g) "Purchase of goods and services" shall mean a contract to supply materials,
supplies, equipment, the lease or rental of equipment, and/or the performance of work or labor.
(h) "Written bid" or "Written request for bid" shall include e-mail and facsimile
transmittals.
2.76.040 REQUESTS FOR BIDS AND BID LISTS. Requests for bids required
in tbis section shall be solicited for the purpose of establishing comparable and competitive bid
pricing and the best price for the proposed purchase. Bids received in response to such requests
for bids sh~ll be documented and subrPitted, along with any other relevant material, to the
approving authority as set forth in, Section 2.76.060. Bids for purchases shall be obtained as
follows:
2
Procurement and Disposal Code
(a) Purchases of$10,000 orIess. Any contract, for which the estimated costto
purchase goods or services, is ten thousand dollars ($10,000.00) or less shall be entered into
pursuant to such terms and conditions as may be authorized by the Director. Purchases under this
subsection are not required to be entered into pursuant to solicitation or requests for bids and
may be entered into through direct negotiations.
(b) Purchases over $10,000 but not exceeding $25,000. If it appears that the
estimated cost of a contract to purchase goods or services, other than professional and consulting
services, will be over ten thousand dollars ($10,000.00) but not exceeding twenty-five thousand
dollars ($25,000.00), the Director may contract as follows:
(1) Telephone and/or written bids. Solicit, obtain and document telephone
and/or written comparable bids for each purchase from at least three (3) sources. If less than
three (3) vendors are available for bids after reasonable attempts, then such shall be documented
and bids may be obtained from the available sources,
(2) Bid lists. For regularly-made purchases, a list of comparable bids may be
maintained and updated periodically and purchases made from that list without soliciting bids for
each such purchase,
(3) Written request for bids. Request in writing and obtain from at least three
", (3) sources, written comparable bids for each purchase. Requests for bid should be in writing and
contain appropriate specifications and terms of purchase as may be applicable. If less than three
(3) vendors are available for bid after reasonable attempts, then such shall be documented and
bids may be obtained from the available sources, (or)
(4) Advertised request for bids. Publish notice calling for bids in a newspaper
of general circulation most likely to bring responsive bids at least ten (10) days before entering
into that contract. The notice shall generally state the nature of the contemplated purchase and
the description or specifications thereof, and it shall require that the bids be filed with the city
clerk or other designated office of the city within the time specified therein.
(c) Purchases over $25.000. If it appears that the estimated cost ofa contract to
purchase goods or services, other than professional and consulting services, will be over twenty-
five thousand dollars ($25,000.00), the Director may contract for purchase as follows:
(1) Written request for bids pursuant to subsection (b )(3) above, ( or)
(2) Advertised request for bids pursuant to subsection (b)( 4) above.
( d) Award of contract on best bid. Subject to the authorization requirements set forth
in Section 2.76.100, the Director may:
(1 ) Award a contract for purchase to the best bid as defined in Section
2.76.030(a) in response to a solicitation or request for bid pursuant to this section,
(2) Reject any and all bids, and/or
(3) Enter into direct negotiations with a bidder to modify the product or
service to be purchased or to obtain a more favorable price or terms for the City.
If an award of a contract for goods and services is made to a supplier who is not
the lowest bidder, then the reason for awarding the contract to another supplier shall be
documented (delivery time, warranty, the bid did not meet the product or service requirements of
the City, or specific product line preferred for uniform equipment fleet etc.).
( e) Local preference purchase for goods. When reviewing bids for purchase, all
tl>;ngs being eqn~l when consideri..ng factors suc.h as product qua11ty, delivery, wa.rranty or
service provided, there is a preference to purchase from a local supplier. A local supplier is a
3
Procurement and Disposal Code
supplier having an office or facility located in Kitsap County and be licensed to and doing
business in the county.
(f) Contracts with other public entities. In lieu of the requirements for requests for
bids pursuant to this section, the City may, pursuant to an interlocal agreement with another
public entity which has entered into a contract with a supplier pursuant to an advertised request
for bid, contract with said supplier on similar terms for the purchase of materials, supplies or
equipment.
2.76.050 REQUESTS FOR PROPOSALS. In lieu of the requirements for
requests for bids pursuant to Section 2.76.040, requests for proposals may be utilized when
deemed appropriate under such terms and conditions deternlined suitable to meet the needs and
requirements of the particular purchase.
2.76.060 PROFESSIONAL AND CONSULTANT CONTRACTS. This section
shall apply to professional and/or technical service consultant contracts in which the city enters
into an agreement to purchase consultant services for city government from a corporation, firm,
agency, individual, or group of individuals based on their recognized experience and knowledge
"', within a specialized area of expertise. Contracts for professional and consultant services are not
required to follow the purchasing requirements set forth in Section 2.76.040, but may be entered
into through direct negotiations.
2.76.070 SUPPLY CONTRACTS AND BLANKET PURCHASE ORDERS. In
lieu of requesting bids for each purchase or maintaining bid lists, the city may solicit bids or
proposals for a supply contract for a specific term or issue a blanket purchase order for the
supply of goods, materials, supplies, equipment or services on an as needed basis in those
instances where the specific service or product in a product line or volume of units is
undetermined such as the city's needs and use of office supplies.
2.76.080 DETERMINING COST OF CONTRACT. To determine the cost ofa
contract for the purpose of establishing the appropriate purchasing procedures under this chapter,
when the contract has no definite term or unit amount such as a supply contract or blanket
purchase order, the amount of each individual purchase shall determine the appropriate
purchasing procedures. Contracts may not be split to avoid the bidding and authorization
requirements set forth in this chapter.
2.76.090 SOLE SOURCE PURCHASES. The requirements set forth in Section
2.76.040 for requests for bids may be waived by a written deternlination by the Director that
either the materials, supplies, equipment or services are clearly and legitimately limited to a
single source of supply, or that the materials, supplies, equipment or services are subject tosspecial market conditions, involve special facilities or services, or that a bid would otherwise not
be practicable or in the city's best interests under the circumstances, in which instances the
purchase price may be best established by direct negotiation. The written determination shall also
recite why this situation exists.
4
Procurement and Disposal Code
2.76.100 CONTRACT APPROVAL REQUIRED.
(a) MayorlDirector approval. Any contract which is twenty-five thousand dollars
($25,000.00) or less intended for the purchase, lease or rental of supplies, material, equipment or
services must be approved by the mayor or director or his or her designee to become effective
and binding upon the city.
(b) Council approval. Any contract which is over twenty-five thousand dollars
($25,000.00) intended for the purchase, lease or rental of supplies, material equipment or
services must be approved by the City Council to become effective and binding upon the city.
( c) Prior Council Consideration. When the council has specifically considered and
approved by formal action a particular program or matter in which the amount of the contract
and the contracting parties have been identified, such as awards of bids, funding of certain
programs, authorization to purchase or to negotiate for the purpose of a particular item or
service, or other similar program or matter, such consideration and approval shall constitute
council authorization for the purpose of this section.
2.76.110 AMENDMENTS AND CHANGE ORDERS - APPROVAL.
(a) Amendments or change orders to contracts requiring City Council approval under
"', this chapter may be administratively approved by the Mayor if the changes are:
(1) Within the scope of the project;
(2) Consistent with an initial bid process, if any;
(3) Executed in writing; and
(4) An increase of the contract award amount (CAA) as follows:
Contract Award
Amount
Percentage Increase in Limits
CAA (the greater of)
Greater than
$500,000
10% or minimum
Min $0
Max $30,000
Min $30,000
Max $100,000
Min $100,000
Max $200,000
Less than $100,000
30% or minimum
$100,000 to $500,000 20% or minimum
(b) The value of all change orders will be aggregated. When any single change order,
or combined change orders on the same project or single purchase exceeds the value limit, the
change must be approved by City Council, except in the following instances:
(1) On service contracts used to accomplish an ongoing City program as
opposed to completing a short term project or purchase, change order rules, including the
aggregate rule, shall be applied on an annual basis.
(2) Where the size of the contract and the exhausting of change order
authority make further change order authorization impractical, the City Council may, upon
recommendation of the Mayor, extend the aggregate limits of subsection (a) ( 4) for specific
contracts.
(c) A work change directive may be used to:
5
Procurement and Disposal Code
(1) Authorize and direct work that will result in an increase in contract price
within the administrative authority of the Mayor as provided in subsection (a) for specific
contracts. Work change directives that affect the contract price shall be incorporated into a
change order.
(2) Authorize and direct work that will result in an increase in contract price
in excess ofthe administrative authority of the Mayor as provided in subsection (a);
i) where unforeseen conditions necessitate an immediate change to
avoid a contractor's claim against the City for delays, or
ii) due to an emergency as defined in 2.76.030(t) above.
In such circumstances, the work change directive shall be incorporated into a
change order and presented to the City Council at its next regularly scheduled public meeting,
subject to scheduling.
2.76.120 EXCEPTION FOR RECYCLED PRODUCTS. Nothing in the chapter
shall prohibit the city from preferentially purchasing products made from recycled materials or
products that may be recycled or reused.
., 2.76.130 EMERGENCIES. When any emergency requires the immediate
execution of any contract to purchase, lease or rent as described in this chapter, upon the fmding
of the existence of such an emergency, the mayor shall have the power to make and enter into
such contract without strict compliance with the purchasing requirements set forth in this
chapter. The designated department director shall issue a written basis for the emergency
determination accompanied by a description and/or specification and cost estimate of the
contract at the time of or as soon as practicable after the commencement of the purchase.
2.76.140 CREDITIPURCHASE CARD USE.
(a) The Director of Financial Services shall implement and maintain the following
system for the distribution, authorization and control of credit/purchase cards issued to or for the
benefit of the City and used by City officials and employees.
(1) Distribution. Credit cards may be distributed to those City officials and
employees who, in the opinion of the Director of Financial Services, have job responsibilities
that would benefit or otherwise be facilitated by use of credit/purchase cards.
(2) Authorization and Control. The Director of Financial Services shall
develop specific administrative guidelines and accounting controls to ensure the proper usage of
credit/purchase cards and related funds. Credit/purchase cards are to be used when it is in the
best interest of City administrative affairs.
(3) Application. The individual holder, upon prior approval of the Director of
Financial Services, shall use each credit/purchase card in a responsible manner.
(4) Credit Limits. The Director of Financial Services shall set credit/purchase
limits on each card issued subject to final approval by the Mayor. Individual purchases shall not
exceed five thousand dollars ($5,000.00) and in no event shall the credit/purchase card limit
exceed ten thousand dollars ($10,000.00) for any individual credit/purchase card account without
pre-approval of the Director of Financial Services.
(5) Credit Card Restriction. The follov{jng will be considered an unauthori..zed
transaction, purchase or use of any City credit/purchase card:
(i) Cash advances;
6
Procurement and Disposal Code
(ii) Payment of invoices or statements;
(iii) Purchases where an open charge account would be utilized;
(iv) Personal purchases of any kind; and/or
(v) Obtaining cash refunds for goods purchased with a City
credit/purchase card.
(6) Disallowed Charges. Disallowed charges or charges not properly
identified will be paid by the employee before the charge card/purchase billing is due. Failure to
do so will render the employee personally liable where the City shall have a prior lien against
and a right to withhold any and all funds payable or to become payable to the employee up to the
unpaid amount, plus interest and/or fees at the rate charged by the bank that issued the card.
Employee shall not use the credit/purchase card if any disallowed charges are outstanding.
The act of obtaining a City credit/purchase card does not indicate pre-approval of expenditures.
(7) Return of CreditlPurchase Card. The employee shall return all City
credit/purchase cards at the request of the Director of Financial Services, or upon separation of
employment. Final paycheck will be held until all outstanding City property has been returned.
(b) The Mayor and/or Director of Financial Services are authorized to implement any
additional policies or administrative procedures necessary to implement the provisions of this
", section.
2.76.150 PERSONAL PROPERTY DISPOSAL.
(a) Surplus personal property of twenty-five thousand dollars ($25.000.00) or less in
value. Approval of the City Council is not required for the sale or disposition of any City-owned
surplus personal property with an estimated value of twenty-five thousand dollars ($25,000.00)
or less. When such personal property has been certified for disposition by a Director, sale or
disposition shall be made by the Director in accordance with methods described in subsection (c)
below. Items having a nominal value may be disposed of in any reasonable and prudent manner or
the Mayor may donate the item to a specific bona fide charitable organization which is tax exempt
pursuant to Internal Revenue Code Sec. 501 (c )(3).
(b) Surplus personal property over twenty-five thousand dollars ($25,000.00) in
value. Disposition of surplus personal property with an estimated value over twenty-five
thousand dollars ($25,000.00) must be approved by the City Council. The City Council may:
(1) Approve the disposition;
(2) Approve the disposition with conditions; or
(3) Disapprove the proposed disposition, whereupon it shall give the Director
directions for further action.
(c) Methods of disposition. Permissible methods of disposition of surplus personal
property include, but are not limited to:
(1) Public auction;
(2) Solicitation of bids;
(3) Negotiated sale for approximate fair market value; or
(4) Transfer to another agency of government pursuant to subsection (d) ( 4) below.
(d) StatutOry conditions/exceptions. Certain provisions of the Revised Code of
Washington impose special conditions or procedures for the disposition of municipal personal
property. When required, the Director shall comply with those laws, and when authorized the
Director may utilize said laws treating them as limited exceptions to the extent inconsistent with
7
Procurement and Disposal Code
.lj
the requirements of this chapter. These laws include, but are not limited to, the following as
currently enacted and hereinafter amended:
(1) RCW 35.94 - Sale or Lease of Municipal Utilities;
(2) RCW 63.32 - Unclaimed Property in Hands of City Police;
(3) RCW 35.21.088 - Equipment rental fund;
(4) RCW 39.33 - Intergovernmental Disposition of Property;
(5) RCW 39.34 - Interlocal CooperationAct;
(6) RCW 63.21 - Lost and Found Property; and
(7) RCW 35.21.730 through 755 - Transfers to public corporations; and
(8) RCW 46.55230 and 240 - Disposition of junk vehicles.
SECTION 4. Severability. If anyone or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity ofthe remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 5. Effective Date. This ordinance shall take effect and be in force ten
-', (10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the 16th day of March, 2005
Approved this -=* 'J Ad day of ~ ~ /
, 2005
~ZEMAN' Mayor
~
AP
AS TO FORM:
P TON, ity Clerk
PUBLISHEDtheot~ dayof~
EFFECTIVE the diM, day of'!ttf,lA_P.L.J
ORDINANCE NO. .ijtfdLJ
R:\LEGAL\Ordinances\Finance\Procurement and Disposal Code.doc
, 2005
, 2005
8
Procurement and Disposal Code
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
BILL#~N1
DATE SUBMITTED: June 21,2006
,,~
,.................................B......m.......................................aa.....
SUBJECT: Appointment of Development
Manager at a step higher than Rate 1 in Pay
Band 15 and adjustment of the Planning
Manager within Pay Band 15.
Committee Meeting Date: June 28, 2006
COUNCIL MEETING Date: July 5, 2006
Department: DCD
Presenter: Chris Hugo
Phone: 473-5243
SUMMARY: The Director ofDCD proposes to offer the vacant Development Manager position to
Steve Wilcox, currently a Community Development Director, who has four years experience as a
Development Services Manager and numerous years experience as a Building Official and Plans
Examiner. The Director has negotiated salary compensation and proposes making this appointment at
Rate 4 in Pay Band 15. By BMC 2.50.032(a), the Council must approve any starting salary above
Rate 1. In conjunction with this action the Director ofDCD also proposes to adjust the salary of the
Planning Manager from Rate 1 to Rate 4 of Pay Band 15. This in-range rate adjustment is to provide
for internal equity corrections. By BMC 2.50.032(b) the Council must also approve of this action.
A TT ACHMENTS: Extract from current Managerial Salary Plan
FISCAL IMP ACTS (Include Budgeted Amount): None. The salaries are within the 2006 budget for
these positions.
APPROV ALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
/~~K' LCONSENT AGENDA 0 I
i?;~ ~c~:::::t;/
RECOMMENDED MOTION:
1). Approve the hire of the Development Manager at Pay Band 15, Rate 4, of the City of Bremerton
Management Salary Plan 2006.
2). Adjust the Planning Manager within Pay Band 15 to Rate 4 of the City of Bremerton Management
Salary Plan 2006
COUNCIL ACTION: 0 Approve 0 Deny 0 Table
o Continue 0 No Action
Steven R. Wilcox
~':>'>:~i}i'c~:",~Y.;~;f;;...;:...-"~;C.;.t;""'dg:.'/~~:"r.:;,,,,..~..-.;..-:::~~;-;.,-*,~~;i.;\~~r:~"'...-;,;~~~,,;'~,;~;~~,-,'-...u!;,\1-.:\~J-:J:j~,.,.:.:t:--.tS.,'-:rU,;-l:-:#t:?:n"":;€'>'R.<,;~5.~q,\";-;;'-~"-"-1U:~-::F11'~~""'.~.r-:-:.;'='.;,:{~~>>1::;;:~~i:iiW:&:Mt':'
May 17,2006
City of Bremerton
Human Resources
345 Sixth Street
Suite 600
Bremerton, WA 98337
Human Resources:
"Please accept my application for the Development Manaaer position. I am very interested in
this position and feel that I would be a good fit for the City of, Bremerton. You will find that I
have a passion for excellence and the well rounded background necessary for success in this
position.
Examples of my experience and qualifications for this position include:
It Development Services Manager
· Community Development Director
· Building Official
· Fire Official, and Fire Prevention Bureau Manager
· Budgeting; Including Revenue Forecasting and Expenditures
8 Emergency Management Operations
e Municipal Code Development and Updating, Policy and Process Development
" State Building Code Council Energy Code Technical Advisory Group Representative
o Successful Small Business Operator
I believe in creating a culture in the workplace that fosters teambuilding, cooperation and
communication in the pursuit of excellence. Positive working partnerships among staff,
departments and agencies is my focus. My work in private industry has given me a balanced
and unique perspective on my work in government that has proven beneficial. I look forward to
discussing the Development Manager position and my qualifications with you.
Sincerely,
/~ !
"~')-f L1:..0./""
/'
/
/.
, ,
.' /
'~'-
i
,J.!
l'\/.
Steven'R Wilcox
. . .
. .
- .
~J;i::~;i.!?~~:~:'C-3;i1l'.;I"&~,';<'~Cj...;;:;g-~~:~":".::-f1.l:'.;t::-1':.'~1':~~l"-~~J::.,,-,""::~;-f::'~._;..~;.,;t.;Q-~..:.~l;;,~..i.r;....~":_'~o;s::~:.;...:.c-:;'ir.:-~""5(';;':-";,:k;w1O,j~.M~!,~~~;~':;:.:R[~r,;
Steven R. Wilcox
EXPERIENCE
Acting Community Development Director
City of Covington, Washington
April 2006 - Present
Responsible for establishing a new department in a rapidly developing city at the GMA
Urban Boundary. Manager of Planning and Building Divisions. Staff liaison to Planning
Commission. City Building Official
Development Services Manager
City of Covington, Washington
November 2002 - April 2006 .i
Manager of Development Services Division and Building Official. Manage current
planning, development engineering, Permit $ervices, construction inspection, fire
prevention and building division
Building Official and Fire Official
City of Sammamish, Washington
February 2000 - December 2001
New city. Responsible for initiating and administering all functions of a new building,
fire prevention and one-stop permitting division .'
Construction Defect Investigation and Project Management
June 1998 - Present (sole proprietor-part time and full time) .
Construction investigation and technical services specializing in: owner's construction
period representative, fact finding, expert testimony, building and construction defect
methods and materials analysis, land us~. analysis, .iflsurance investigations.
Established City of Lake Forest Park, W A. Building Division
Building Official
City of Mercer Island, Washington
November 1994 - January 1999 (full time and consulting contract)
Building Division and Permit Center Manager
Plans Examiner
King County Department of Development and Environmental Services.
January 1986 - November 1994.
Residential and Commercial building plan review. Interim Section Manager
EDUCATION and CERTIfICATIONS
Bachelor of Science in Building Construction Management
University of Washington, Seattle 1984
Certificate of Proficiency in General Studies
Shoreline Community College, Seattle 1981
Certificate of Proficiency in Drafting
Shoreline Community College, Seattle 1981
Minor study in Architecture
University of Washington, Seattle 1984
Certified Building Official
International Code Council (ICC/CABO No. 2564)
Certified Building Inspector
'" International Code Council (ICC No. 0844530-10)
Certified in Construction Site Erosion Control and Sedimentation; Road Pavement
Evaluation Program, Traffic Flagger Certification
Washington State Department of Transportation
Certified National Incident Management System IS-00700; Federal Disaster Workers
1-100; Certified ATC-20 Trainer; Certified ATC-21 Pre-Earthquake Inspector, Certified
ATC-20 Post Earthquake Inspector' .
Federal Emergency Management Agency (FEMA)
Communications and Collaborative Problem Solving
Glazer and Associates
"
MEMBERSHIPS, AFfILIATIONS and VOLUNTEER
Washington Association of Building Officials
International Code Council
American Planning Association
International Association of Plumbing and Mechanical Officials
University of Washington Alumni Association
State Building Code Council Energy Code Technical Advisory Group.
Washington Association of Building Official's Representative (volunteer)
Court Appointed Special Advocate (CASA)
Children's Advocate in King County (volunteer)
DATE SUBMITTED: AprilS, 2006
BILL # O/D-083
AGENDA BILL -
CITY OF BREMERTON
CITY COUNCIL
7A
· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · .. C; li- 9 jiO r;,
SUBJECT: Exemption of ad valorem Committee Meeting Date: April 12, 20Q6..5~(} ~
property tax for new multi-family housing ill COUNCIL MEETING Date: April 19, 2006 S- /7 ,16;, (p 7~~
centers (public hearing) Department: Comm. Development 7-5-~
Presenter: Chris Hugo
()rd.'"rU1a, No. 'f&jfOB Phone: 473-5243
SUMMARY: In 1995, the State Legislature passed 84.14 RCW that allows cities of certain size to
create a tax incentive program to induce development of new, multi-family housing within designated
urban centers. The incentive is a 10-year waiver of all new property tax on new or rehabilitated
buildings that create four or more housing units. Bremerton has been eligible to enact this program for
many years. With the adoption of the 2004 Comprehensive Plan, incorporating a new growth strategy
based on centers, the City is well staged to utilize this incentive. The proposed ordinance enables the
waiver, establishes administrative procedures, and defines eligible districts.
'A'TTACHMENTS: Ordinance No. lI1ft,fj
Background infoffilation from Tacoma, W A, program
Staff report
FISCAL IMPACTS (Include Budgeted Amount): Property tax revenue from new M/F housing
projects will be lost for 10 years, but this can largely be off-set by added sales tax revenue generated
by new residents. Without the incentive, new development may not materialize as plamled.
APPRO V ALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
I CONSENT AGENDA 0 I
RECOMMENDED MOTION: Move to pass Ordinance No.4qf9'~ to provide exemptions from ad
valorem property taxation for new multi-family housing in designated urban centers of the City.
COUNCIL ACTION: D Approve D Deny D Table
D Continue D No Action
ORDINANCE NO. 4 q (p f3
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, Creating BMC 3.78 relating to
exemptions from ad valorem property taxation for new multi-
family housing in designated urban centers of the City.
WHEREAS, the current provisions of the Bremerton Municipal Code do not
provide ad valorem property tax exemptions for multi-family housing in urban center; and
WHEREAS, exemptions from ad valorem property taxes for multi-family housing
encourage increased residential opportunities within urban centers, stimulate new construction
and rehabilitation of existing buildings, assist in directing future population growth and helps to
achieve development densities which are more conducive to transit use in designated urban
centers; and
........
WHEREAS, the City Council desires to provide limited ten year exemptions from
ad valorem property taxation for multi-family housing in designated urban centers;; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.78 of the Bremerton Municipal Code entitled "Multi-
Family Property Tax Exemptions" is hereby created to read as follows:
Chapter 3.78
MULTI-FAMILY PROPERTY
T AX EXEMPTION
3.78.010 PURPOSE.
As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited
ten (10) year exemptions from ad valorem property taxation for multi-family housing in
designated urban centers to:
(a) Encourage increased residential opportunities within urban centers designated by
the City Council as residential targeted areas; and/or
(b) Stimulate new construction or rehabilitation of existing vacant and underutilized
buildings for multi-family housing in residential targeted areas to increase and improve housing
opportunities; and
(c) Assist in directing future population growth to designated urban centers, thereby
reducing development pressure on single-family residential neighborhoods; and
(d) Achieve development densities which are more conducive to transit use in
designated urban centers.
1
Multi-family Property Tax Exemption
3.78.020 DEFINITIONS.
When used in this chapter, the following terms shall have the following meanings, unless
the context indicates otherwise:
(a) Department means the City Department of Community Development.
(b) Multi-family housing means building(s) having ten (10) or more dwelling units
designed for permanent residential occupancy resulting from new construction or rehabilitation
or conversion of vacant, underutilized, or substandard buildings.
( c) Multi-family property tax exemption means an exemption from ad valorem
property taxation for multi-family housing.
(d) Owner means the property owner of record.
(e) Planning Manager means the Planning Manager of the Department, or designee.
(f) Permanent residential occupancy means multi-unit housing that provides owner
occupancy on a non-transient basis. This excludes apartments, hotels and motels that
predominately offer rental accommodation.
(g) Rehabilitation improvements means modifications to existing structures that are
vacant for twelve (12) months or longer that are made to achieve a condition of substantial
", compliance with existing building, fire, and zoning codes, or modification to existing occupied
structures which increase the number of multi-family housing units.
(h) Residential targeted area means those urban centers designated residential
targeted areas pursuant to the hearing process set forth in RCW 84.14.040 within the following
geographic areas of Bremerton:
(1) Those parts of the Downtown Regional Center on the Land Use Plan Map
that are zoned "DC - Downtown Core," "BC - Business Core," "LC" - Limited Commercial" and
"MR - Multiple Residential" and
(2) Any designated Neighborhood Center, District Center, or Employment
Center for which the City Council has adopted a sub-area plan.
(i) Substantial compliance means compliance with all local building, fire and zoning
code requirements, which are typically required for rehabilitation as opposed to new
construction.
3.78.030 TERMS OF THE TAX EXEMPTIONS FOR MULTI-FAMILY
HOUSING IN RESIDENTIAL TARGETED AREAS.
(a) Duration of exemption. The value of improvements qualifying under this chapter
is exempt from ad valorem property taxation for ten (10) successive years beginning January 1st
ofthe year immediately following the calendar year after issuance of the final certificate of tax
exemption.
(b) Limits on exemption. The exemption does not apply to the value of land or to the
value of improvements not qualifying under this chapter, nor does the exemption apply to
increases in assessed valuation ofland and non-qualifying improvements. In the case of
rehabilitation of existing buildings, the exemption does not include the value of improvements
constructed prior to submission ofthe completed application required under this chapter. This
chapter does not apply to increases in assessed valuation made by the assessor on non-qualifying
portions of building and value of land nor to increases made by lawful order of a county board of
equalization, the Department of Revenue, or a county, to a class of property throughout the
2
Multi-family Property Tax Exemption
county or specific area of the county to achieve the uniformity of assessment or appraisal
required by law.
3.78.040 PROJECT ELIGIBILITY.
A proposed multi-family housing project must meet the following requirements for
consideration for a property tax exemption:
(a) Location. The project must be located within the residential targeted area as
defined in BMC 3.78.020, Definitions, Residential targeted area.
(b) Tenant displacement prohibited. The project must not displace existing residential
tenants of structures that are proposed for redevelopment. Existing dwelling units proposed for
rehabilitation must be vacant for a minimum of twelve (12) consecutive months prior to
submission of an application and must fail to comply with one or more standards of the UBC or
UFC on or after July 23, 1995. Applications for new construction cannot be submitted for vacant
property upon which an occupied residential rental structure previously stood, unless a minimum
of twelve (12) months has elapsed from the time of most recent occupancy.
(c) Size. The project must include at least ten (10) units of multi-family housing
within a residential structure or as part of an urban development. A minimum of four new units
.., must be constructed or at least four (4) additional multi-family units must be added to existing
occupied multi-family housing. Existing multi-family housing that has been vacant for twelve
(12) months or more does not have to provide additional units.
(d) Proposed completion date. New construction of multi-family housing and
rehabilitation improvements must be completed within three (3) years from the date of approval
of the application.
(e) Compliance with guidelines and standards. The project must be designed to
comply with the City's Comprehensive Plan, building, housing, and zoning codes, and any other
applicable regulations. The project must also comply with any other standards and guidelines
adopted by the City Council for the residential targeted area.
3.78.050 APPLICATION PROCEDURE.
A property owner who wishes to propose a project for a tax exemption shall complete the
following procedures:
(a) The application provided by the City shall be filed with the Department along
with the required fees.
(b) A complete application shall include:
(1) A completed City of Bremerton application form setting forth the grounds
for the exemption.
(2) Preliminary floor and site plans ofthe proposed project.
(3) A statement acknowledging the potential tax liability when the project
ceases to be eligible under this chapter.
(4) An affidavit stating the occupancy record of the property for a period of
twelve (12) months prior to filing the application.
(5) Verification by oath or affinnation of the information submitted.
(6) For rehabilitation projects, if the applicant proposes replacing the existing
units and if the units were occupied within twelve (12) months of application the applicant shall
provide a report prepared by a registered architect identifying property noncompliance with the
UBC or UFC. This report shall identify specific code violations and must include supporting data
3
Multi-family Property Tax Exemption
that satisfactorily explains and proves the presence of a violation. Supporting data must include a
narrative and such graphic materials as needed to support this application. Graphic materials may
include, but are not limited to, building plans, building details, and photographs.
3.78.060 APPLICATION REVIEW AND ISSUANCE OF CONDITIONAL
CERTIFICATE.
The Planning Manager may certify as eligible an application which is detennined to
comply with the requirements ofthis chapter. A decision to approve or deny an application shall
be made within ninety (90) calendar days of receipt of a complete application.
(a) Approval. The Planning Manager may approve the application if he/she finds that:
(1) A minimum of four (4) new units are being constructed or in the case of
occupied rehabilitation or conversion within twelve (12) months of occupancy, a minimum of
four (4) additional multi-family units are being developed.
(2) The proposed project is or will be, at the time of completion, in
conformance with all applicable local plans and regulations.
(3) The owner has complied with all standards and guidelines adopted by the
City under this chapter.
" (4) The site is located in the residential targeted area.
(b) If an application is approved, the applicant shall enter into a contract with the
City, regarding the terms and conditions of the project, and the Planning Manager shall issue a
conditional certificate of acceptance of tax exemption. The conditional certificate shall expire
three (3) years from the date of approval unless an extension is granted as provided in this
chapter.
( c) If an application is denied, the Planning Manager shall state in writing the reasons
for denial and shall send notice to the applicant at the applicant's last known address within ten
(10) calendar days of the denial. Per RCW 84.14.070, an applicant may appeal a denial to the
City Council within thirty (30) calendar days of receipt of the denial by filing a complete appeal
application and fee with the Planning Manager. The appeal before the City Council will be based
on the record made before the Planning Manager. The Planning Manager's decision will be
upheld unless the applicant can show that there is no substantial evidence on the record to
support the Planning Manager's decision. The City Council's decision on appeal will be final.
3.78.070 EXTENSION OF CONDITIONAL CERTIFICATE.
(a) The conditional certificate and time for completion of the project may be
extended by the Planning Manager for a period not to exceed a total of twenty- four (24)
consecutive months. To obtain an extension, the applicant must submit a written request with a
fee stating the grounds for the extension. An extension may be granted if the Planning Manager
determines that:
(1) The anticipated failure to complete construction or rehabilitation within
the required time period is due to circumstances beyond the control of the owner;
(2) The owner has been acting and could reasonably be expected to continue
to act in good faith and with due diligence; and
(3) All the conditions of the original contract between the applicant and the
City will be satisfied upon completion of the project.
(b) Denial and appeal. If an extension is denied, the Planning Manager shall state in
writing the reason for denial and shall send notice to the applicant's last known address within
4
Multi-family Property Tax Exemption
ten (10) calendar days of the denial. Pursuant to RCW 84.14.090(6), an applicant may appeal the
denial of an extension to the hearing examiner within fourteen (14) calendar days of receipt of
the denial by filing a complete appeal application and fee with the Planning Manager. The appeal
before the hearing examiner shall be processed as a Type I Director Decision pursuant to Chapter
20.02 BMC. No appeal to the City Council is provided from the hearing examiner's decision.
The applicant may appeal the hearing examiner's decision to the Kitsap County superior court,
under RCW 34.05.510 through 34.05.598, if the appeal is filed within thirty (30) calendar days
of receiving notice of that decision.
3.78.080 APPLICATION FOR FINAL CERTIFICATE.
Upon completion of the improvements agreed upon in the contract between the applicant
and the City and upon issuance of a certificate of occupancy, the applicant may request a final
certificate of tax exemption by filing with the Planning Manager the following:
(a) A statement of expenditures made with respect to each multi-family housing unit
and the total expenditures made with respect to the entire property;
(b) A description of the completed work and a statement of qualification for the
exemption; and
,., (c) A statement that the work was completed within the required three (3) year period
or any authorized extension.
3.78.090 ISSUANCE OF FINAL CERTIFICATE.
Within thirty (30) calendar days of receipt of all materials required for a final certificate,
the Planning Manager shall determine whether the specific improvements satisfy the
requirements of the contract, application, and this chapter.
(a) Granting offinal certificate. If the Planning Manager determines that the project
has been completed in accordance with this chapter and the contract between the applicant and
the City, and has been completed within the authorized time period, the City shall, within ten
(10) calendar days of the expiration of the thirty (30) day review period above, file a final
certificate of tax exemption with the Kitsap County assessor.
(b) Denial and appeal. The Planning Manager shall notify the applicant in writing
that a final certificate will not be filed if the Planning Manager determines that:
(1) The improvements were not completed within the authorized time period;
(2) The improvements were not completed in accordance with the contract
between the applicant and the City; or
(3) The owner's property is otherwise not qualified under this chapter.
Pursuant to RCW 84.14.090(6), an applicant may appeal a denial to the hearing examiner
within fourteen (14) calendar days of issuance of the denial of a final certificate by filing a
complete appeal application and fee with the Planning Manager. The appeal before the hearing
examiner shall be processed as a Type I Director Decision pursuant to Chapter 20.02 BMC. No
appeal to the City Council is provided from the hearing examiner's decision. The applicant may
appeal the hearing examiner's decision to the Kitsap County superior court, under RCW
34.05.510 through 34.05.598, if the appeal is filed within thirty (30) calendar days of receiving
notice of that decision.
5
Multi-family Property Tax Exemption
3.78.100 ANNUAL COMPLIANCE REVIEW.
(a) Within thirty (30) calendar days after the first anniversary ofthe date of filing the
final certificate oftax exemption and each year thereafter for a period of ten (10) years, the
property owner shall file a notarized declaration with the Planning Manager indicating the
following:
(1) A statement of occupancy and vacancy of the multi-family units during
the previous twelve (12) months;
(2) A certification that the property continues to be in compliance with the
contract with the City and this chapter; and
(3) A description of any subsequent improvements or changes to the property.
(b) City staff may also conduct on-site verification of the declaration. Failure to
submit the annual declaration shall result in a review of the exemption per RCW 84.14.110.
3.78.110 CANCELLATION OF TAX EXEMPTION.
If the Planning Manager determines the owner is not complying with the terms of the
contract or this chapter, the tax exemption shall be canceled. This cancellation may occur in
conjunction with the annual review or at any other time when noncompliance has been
-'"' determined. If the owner intends to convert the multi-family housing to another use, the owner
shall notify the Planning Manager and the Kitsap County assessor in writing within sixty (60)
calendar days of the change in use.
(a) Effect of cancellation. If a tax exemption is canceled due to a change in use or
other noncompliance, the following taxes and penalties will apply:
(1) Additional real property tax, plus interest, shall be imposed based upon the
value of the non-qualifying improvements. This additional tax is calculated based upon the
difference between the property tax paid and the property tax that would have been paid if it had
included the value of the non-qualifying improvements dated back to the date that the
improvements were converted to a non-qualifying use.
(2) A penalty shall be imposed amounting to twenty (20) percent of the value
of the additional property tax plus interest.
(3) The interest is calculated at the same statutory rate charged on delinquent
property taxes from the dates on which the additional property tax could have been paid without
penalty ifthe improvements had been assessed at full value without regard to this tax exemption
program.
(4) The additional taxes, interest and penalties will become a lien on the land
and attach at the time the property or portion of the property is removed from multi-family use or
the amenities no longer meet applicable requirements. The lien has priority over and must be
fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or
responsibility to or with which the land may become charged or liable. The lien may be
foreclosed upon expiration of the same period after delinquency and in the same manner
provided by law for foreclosure of liens for delinquent real property taxes. An additional tax
unpaid on its due date is delinquent. From the date of delinquency until paid, interest must be
charged at the same rate applied by law to delinquent ad valorem property taxes.
(b) Notice and appeal. Pursuant to RCW 84.14.110(2), upon detennining that a tax
exemption is to be canceled, the Planning Manager shall notify the owner by mail, return receipt
requested. The property owner may appeal the determination by filing a notice of appeal with the
City Clerk within thirty (30) calendar days, specifying the factual and legal basis for the appeal.
6
Multi-family Property Tax Exemption
The hearing examiner will conduct a hearing under Chapter 21.02 BMC for a Process I action.
An aggrieved party may appeal the hearing examiner's decision to the Kitsap County superior
court under RCW 34.05.510 through 34.05.598.
3.78.120 EXPIRATION OF APPLICATION PERIOD.
The application period to apply for the tax exemption provided for in this chapter expires
December 31,2011, however, all rights, privileges, duties and responsibilities provided for in
this chapter shall remain in effect after this date for complete and qualifying applications
received by the City on or before December 31, 2011.
SECTION 2. Severability. If anyone or more sections, subsections, or
sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this ordinance and the same shall remain in full
force and effect.
SECTION 3. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
",
PASSED by the City Council the
day of
,2006
CECIL McCONNELL, Council President
Approved this
day of
,2006
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
PAULA JOHNSTON, City Clerk
ROGER A. LUBOVICH, City Attorney
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of
day of
,2006
,2006
R:\LEGAL\Ordinances\Community Development\Multi-Family Property Tax Exemption.doc
7
Multi-family Property Tax Exemption
.
.
.
MULTI-FAMILY TAX INCENTIVE
Tacoma, Washington
"
Program Extracts
· Benefits to Program Participants
· Frequently Asked Questions on Program
· Frequently Asked Questions on State
Legislation
III. BENEFITS TO PROGRAM
PARTICIPANTS
The ten year property tax savings are shared by both developers and consumers of the
affected housing. The impact of these benefits is considered in this section in both
qualitative and quantitative terms for rental and for-sale housing.
DISCUSSION OF PROGRAM BENEFITS
",
The reduced property taxes resulting from the exempt value of improvements can be
shared among consumers in the form of lower rents/prices, or developers in the form of
increased project income. The purpose of the program is to stimulate new multifamily
development in specific targeted areas. Development can be stimulated both by reducing
prices, thereby increasing the demand for housing; and by reducing the cost of
development, thereby providing financial incentive for developers.
We solicited comments on the program from developers, lenders, and appraisers through
direct interviews and review of comments provided to City staff. Based on those
comments, we identified a series of benefits experienced by program participants.
Developer Income and Return. Development projects are not initiated unless the
expected rate of return meet the returns for comparable risk investments. In many
markets, returns are not sufficient to generate the necessary level of investment, and
development does not occur. By reducing the cost of development and ongoing
operations, a program like the tax exemption program can enhance the feasibility of
development, thereby stimulating development.
Rent Savings. In a competitive market, rents are set at levels necessary to provide an
adequate return to the developer and the lender. Development cost savings beyond the
amount necessary to provide that return will be passed on to renters in such a market.
Greater Housing Choice. Even if all the savings are necessary to meet feasibility
thresholds, new housing development provides consumer benefits through increasing the
number of choices in size, location, type, availability and quality of housing.
Lender Requirements. Development projects are usually financed with debt, and a
project won't receive a loan if it doesn't pass underwriting standards for loan to value
ratio or debt service coverage. By reducing the cost of operations or development, a
program like the tax exemption program can reduce the loan to value ratio, increase the
debt coverage ratio and reduce risk. Lenders are very supportive of the program and use
it as a basis for qualifying loans.
TACOIVIA PROPERTY TAX EXEMPTiON PROGRAM
PROPERTY COUNSELORS
ECONOMIC Ev ALUATION
PAGE 21
Affordability to Purchaser. The purchaser of a tax exempt unit under the program
receives the tax savings. The tax savings increase the disposable income that a purchaser
will have available, and the loan amount available from lenders. For both reasons,
housing is made more affordable and the ability of the buyer to either secure a higher
mortgage loan or even qualify for a loan is improved.
Other specific benefits were identified in program comments.
Condominium development has been slowed in recent years by the cost and
availability of liability insurance required of developers. While the Legislature
acted recently to address the issue, there are still few insurance providers and the
cost of insurance represents $10,000 to $30,000 per unit. The value of the tax
savings can offset some of this cost.
"',
All development encounters increased cost due to unanticipated circumstances
such as rising costs of construction materials. While contingency funds are
identified in advance to cover such conditions, savings in taxes can offset
shortfalls in those contingencies.
There are sometimes front end development costs that can inhibit development.
For example, the 8t. Helens Neighborhood may need as much asn$23 million in
street improvements and infrastructure upgrades, with $13 million of that
potentially financed by a Local Improvement District (LID) taxing property
owners in the district. The value of property tax savings can offset some or all of
costs such as these.
RENTAL UNIT BENEFITS
An apartment project participating in the program will experience lower operating costs,
and potential higher net income. The potential impact on rental rates is summarized in
Table III-I. Two types of rental units are considered: a unit with average rents for the
market area, and a higher amenity unit. The former unit is typical of the projects
developed under the program in the Tacoma Mall area, while the latter is typical of a
project like Metropolitan Towers Downtown. In either case, a typical unit is 700 square
feet. Total development cost including land is estimated to be $60,000 and $120,000 for
the two cases respectively. The amount of exempt taxes on improvement value is
estimated to be $40,000 to $60,000 respectively, based on typical values from Pierce
County Assessor records. Using the 2004 total tax levy rate to all taxing entities of
$17.60 per $1,000 valuation, the annual tax savings per unit are calculated as shown.
In the average rent case, the estimated annual tax savings is $704 per unit. In order to
provide the same return to the developer, a unit developed without the program would
have to rent for $684 per month rather than $625 for a unit developed with the program.
In the high rent case, the estimated annual savings is $1,584 per unit. A unit developed
without the program would have to rent for $1,082 per r1lOnth rather than $950 for a unit
developed with the program.
TACOMA PROPERTY TAX EXEMPTION PROGRAM
PROPERTY COliNSELORS
ECONOllIlC EVALUATION
FACEl2
",
Table 11I-1
Property Tax Exemption Program
Economic Benefits for Rental Projects
Rental Units
A verage Rent High Rent
Unit Size (square feet) 700 700
Development Cost 60,000 120,000
Exempt Value 40,000 90,000
Annual Tax Savings*
(@$17.599/$1,000Valuation) 704 1,584
Required Rental Rate
Without Program 684 1,082
With Program 625 950
* Total tax savings. Amount attributable to City taxes is$152 for
average case and $342 for high case.
CONDOMINIUM UNIT BENEFITS
A condominium project participating in the program will offer ten years of reduced
property tax payments for the purchaser, The purchaser can afford to purchase a more
desirable unit and will qualify for a higher loan (or perhaps any loan) on the purchase.
The impact on potential purchase prices is summarized in Table III-2. Two types of units
are considered: A unit with average price in the market, and a higher amenity unit The
former unit is typical of McCarver Villa units, while the latter is typical of the
condominiums on Thea Foss Waterway. The units considered are 1,200 square feet in
the average price case and 1,600 in the high price case. Total development costs
including land are $170,000 and $400,000 respectively for the two cases. The amount of
exempt improvement value is estimated at $125,000 and $300,000 respectively. Using
the 2004 total tax levy rate to all entities of $17.60 per $1,000 valuation, the annual tax
savings per unit is estimated and translated into a net present value assuming to years at
6 percent interest In the average price case, the value of the tax savings to the purchaser
is $16,200. A purchaser could afford to pay $200,000 for a unit developed under the
program, compared to $183,200 for the same unit if it weren't developed under the
program. In the case of the higher priced unit, the value of the tax savings is $38,900. A
purchaser could afford to pay $480,000 for a unit developed under the program,
compared to $441,100 for the same unit if it weren't developed under the program. In
either case, the higher purchase price provides an adequate return on cost to the
developer,
TACOMA PROPERTY TAX EXEMPTION PROGRA1Vl
PROPERTY COUNSELORS
ECONOMIC EVALUATION
PAGE 23
Table 11I-2
Property Tax Exemption Program
Economic Benefits for For-Sale Projects
Condominium Units
"
A verage Price High Price
Unit Size (square feet) 1,200 1,600
Development Cost 170,000 400,000
Exempt Value 125,000 300,000
Annual Tax Savings*
(@$17.599/$1,000Valuation) 2,200 5,280
Present Value 10 Year Savings
( @ 6% discount rate) 16.191 38,859
Affordable Price
Without Program 183,809 441,141
With Program 200,000 480,000
* Total tax savings. Amount attributable to City taxes is $475 for
average case and $1,140 for high case.
TACOlVIA PROPERTY TAX EXEMPTION PROGRAM
PROPERTY COUNSELORS
ECONOMIC EVALUATION
PAGE 24
Multi-Family Property Tax Exemption Program
Frequently Asked Questions
April 2005
1. When was the Multi-Family Property Tax Exemption Program (Property Tax
Exemption Program) established?
The Property Tax Exemption Program was authorized by the W A State Legislature in
1995 (RCW 84.14.007). The City implemented the program in 1996 (Ordinance #25789)
and added the Portland Avenue Mixed-Use Center in 1997 (Ordinance #25823). Tacoma
played a key leadership role in the legislative approval of the tax exemption program.
.'.....
2. What taxing iurisdictions are allowed to use the Property Tax Exemption
Program? What otheriurisdictions in Pierce County offer the program?
. Eligible cities are those with a population of 30,000 or greater, or the largest city
or town within a county planning under the State's Growth Management Act
(GMA). The state legislature is considering lowering the population requirement
this year to cities and towns with a population of 3,000 or greater.
. Tacoma was the only city in Pierce County offering the program for several years.
However with the lowering of the population restriction by the legislature, other
cities are beginning to offer the exemption. Lakewood recently created their
property tax incentive program for multifamily development, but have not yet
implemented until they determine where and how it should be applied, i.e., rentals
vs. condos, downtown and/or other locations. Puyallup has just approved its first
tax exemption project in its downtown, a eight-unit up-scale condo over a bank
and retail space. They are excited to have an incentive to attract additional
housing to their downtown core. University Place looked at the program as an
economic development tool, but has decided not to implement it at this time.
3. What obiectives did the City Council establish for our Property Tax Exemption
Program?
. Encourage higher density development in response to mandates of the W A
Growth Management Act.
· Direct population growth to designated mixed-used centers, thereby reducing
development pressures on single family residential neighborhoods.
. Encourage increased residential development within mixed use centers designated
by the City Council as residential target areas.
. Rehabilitate existing substandard, vacant or underutilized buildings.
· Stimulate new construction to increase and improve housing opportunities.
· Achieve densities that are conducive to transit use in mixed-use centers.
4. What does the Property Tax Exemption Program do?
The program allows qualifying multi-family housing projects to be exempt from property
taxes on the value of housing improvements for a period of ten years. Property owners
continue to pay property taxes on the full assessed value of the land and any non-housing
improvements during the ten-year period. Tacoma's experience has been that land values
tend to increase when new housing is created. The increased land value is generates
more tax revenue than the vacant parcel would have generated.
5. Who gets the benefit of the Property Tax Exemption?
The ten-year property tax savings belongs to the owner of the real property. If the
property is sold, the tax exemption is passed on to the new owner. The benefits of the tax
exemption are shared by both developers and consumers of the exempted housing. For
the developer, it is a financial incentive to offset risk, improves the economic viability of
", a project, helps projects qualify for necessary financing, can be a hedge against
unexpected or increasing costs, and helps make a high-density product & urban location
competitive with a lower density suburban product & location. The consumer can
benefit from the program in the form of lower rents in a competitive market, diversity and
availability of housing, and improved ability to qualify for a mOligage because the tax
exemption is passed on to the new buyer.
6. How many mixed-use centers does Tacoma have and where are they located?
There are 14 mixed-use centers:
James Center East nod and Portland A venue
North 26th and Proctor South nod and Pacific Avenue
6th A venue and Pine Street Tacoma Mall
Stadium Tacoma Central
South 11 th and Martin Luther Kinll 56th and South Tacoma Way
South 38th and G Street Downtown
Lower Portland A venue Westgate
7. How many proiects and multi-family units are involved in the program?
As of December 2004, Tacoma's staff had worked with 77 projects representing more
than 4,000 multi-family units as follows:
Completed
Under Construction
Approved but not started
Pending Council Action
Expired
Cancelled
Projects
28
4
23
4
14
4
77
Units
967
85
1,317
95
1,485
~
4.012
2
8. What has caused the number of expired proiects/units to be so high?
Even with the benefits from the tax exemption program, many projects don't meet the
financial or market requirement to proceed. Sometimes the lack of economic viability for
the proposed project doesn't become apparent until the latter stages of the consideration
when construction bids, environmental studies and loan applications have been finalized.
In several cases construction has been delayed beyond the three-year approval period
because of inability to obtain financing, or because of significant increases in
construction costs with no corresponding increase in rent or sales price. For example, the
cost of building materials such as steel has soared in the past three years as more
materials are shipped off-shore. Four of the 14 expired approvals (449 units) were sought
by the Foss Public Development Authority (PDA) in anticipation of development that has
been on a longer time line than expected. Some of the expired projects may come back
into play and will require new application submittals should they wish to use the
Multifamily Tax Exemption.
" 9. What role does the Property Tax Exemption play in the developer's ability to
finance proiects?
. Each and every development must be financially sound to qualify for construction and
ou long-term financing. The Multi-Family Property Tax Exemption approval will not be
used by a financial institution to justify a loan that does not meet basic requirements for
loan-to-value ratio, net operating income, ability to service debt on the project, etc.
Nevertheless, the property tax exemption plays a critical role in supporting economic
value established by an appraisal required by a lending institution and can strengthen the
equity position of the developer allowing a project to proceed without seeking a partner
or investor to allow the project to go forward.
Two examples of how the property tax exemption has been used to support local
developments in Tacoma are shown below.
8 Apartment developments with the tax exemption are considered to have two
streams of cash to pay expenses: the rental income of the apartment building in
perpetuity and the value of the tax exemption over a ten-year period. A local
commercial lending officer estimated that the availability of the property tax
exemption am0l1ized over 10 years would add between $500,000-$600,000 to the
loan proceeds available to build a rental project and would most likely be used to
build more units, include on-site amenities, encourage the use of higher quality
materials and finishes, or provide a greater cushion for unexpected or rising costs.
o The property tax exemption is valuable when dealing with for-sale residential
developments in that it (a) helps more people financially qualify to purchase a
home and therefore broadens the pool of potential buyers; and, (b) can accelerate
the rate of sales, thus reducing the amount of financing necessary to carry the
project until it is sold out. Conversely, if a residential development does not have
the property tax exemption and has nothing to differentiate it within the
3
marketplace, i.e., views or desirable location, the project could have a longer sell-
out and greater risk than a project with tax exemption approval.
10. What would be the impact of reducing the duration of the tax exemption to five
years instead of ten? W ouldn't reducing the duration encoura!!e the sale of the real
estate with the tax exemption, therebv generating more excise taxes?
The greater the financial risk in the marketplace, the greater the importance of the term of
the tax exemption. The apartment market has been depressed for the last several years as
low interest rates have allowed consumers to buy rather than rent. Financial institutions
providing both construction and long-term financing for multi-family development have
considered the 10-year term of the incentive as critical to the financial viability of the
proposed development.
The condo market has been healthy during this same period, but not very deep. In other
." words, there are a limited number of buyers for high density residential projects and the
term of the tax exemption is an incentive for both the developer to build the project and
the condo buyer to move from the suburbs to a higher density development.
11. What wages and benefits are provided to construction workers on proiects using
the Property Tax Exemption program?
A survey of the developers shows that most require bidding on their projects and select
the most qualified bidders at the best price. The best bidders are sometimes union,
sometimes nonunion but pay prevailing wages, and sometimes are nonunion companies
paying less than prevailing wages. There is no requirement on the developer to select
subcontractors on the basis of pay scale or benefits provided. It is up to the developer to
select those subcontractors that can produce the best product at the most reasonable cost.
12. How many out of state/out of area contractors are being utilized on Property Tax
Exemption proiects? Is the program benefiting local businesses?
Of the ten developers who responded to the survey, all ten repOlied using only local
suppliers and mostly local contractors and sub-contractors. The program has attracted
developers, contractors and investors from outside the area, yet employees and vendors
typically have remained local. This contributes to the local economy by generating
material sales, employment, sales taxes, B&O taxes, and employment taxes. The resale
of condos, townhomes or apartment buildings generates excise sales taxes each time the
units or buildings are sold.
Many local businesses are benefiting from the increased construction, both directly and
indirectly, i.e., materials suppliers, restaurants and fast food, grocery stores, gas stations,
Realtors, appraisers, loan officers and title companies, rental management companies,
etc.
4
13. Does the Property Tax Exemption Program require developers to use the
Historically Underutilized Businesses (HUB) or Local Emplovee Apprenticeship
Program (LEAP)?
The Tax Exemption program does not require developers to use HUB or LEAP. In 2003,
a committee comprised of a developer, a union representative, and city staff including
Legal, Public Works, Economic Development, the HUB/LEAP program representatives,
and then Assistant City Manager Jim Walton, analyzed the issue of whether or not to
require HUB/LEAP participation for a developer to be granted a property tax exemption.
The conclusion of the committee was that the developers should be encouraged to use
HUB/LEAP but not be required to do so.
14. Has the Property Tax Exemption been used in all the mixed use centers? If not,
why? What is the geographic distribution of properties receiving the MF Tax Exemption?
Is the program benefiting certain parts of the city more than others?
" . Seven of 14 centers have seen multi-family development and the use of the tax
exemption program. Those seven areas include: 6th A venue, Downtown, MLK,
South 56t\ Stadium, Tacoma Central and Tacoma Mall. Tacoma Mall and
Downtown Tacoma have had the greatest number of projects.
. Scarcity of vacant land, insufficient market demand, difficulty ofland assembly,
or lagging interest by developers in certain neighborhoods appear to be the major
reasons for absence of activity in those mixed-use centers that have not had a MF
Tax Exemption development.
The following is a summary of factors that contribute to the lack of MF projects in the
remaining mixed use centers:
James Center: Scarcity of vacant land is a principal factor. The majority of the land in
the center is built-out for commercial and educational uses and their associated parking.
Some redevelopment of the commercial and parking areas has occurred resulting in
commercial or educational development but not residential redevelopment although
allowed by the zoning code. In 2003 ala acre track of vacant land owned by Tacoma
Public Utilities was removed from the center after the adjoining neighborhood sought to
have the property developed as single-family residential. This action significantly
reduced the availability of undeveloped land in this center.
Westgate: Lack of vacant land is the principal reason. Similar to James Center, the
majority of the land within the center is developed with commercial uses and associated
parking. Some new commercial redevelopment has occurred. A large tract of land in the
center is owned by Tacoma Public Utilities and at some point may become available for
development.
72nd Pacific: Major reasons include lack of available land and developer interest in
redevelopment. The majority of the center is built-out with commercial uses and
j
associated parking. A limited number of small vacant parcel do exist in the center;
however, these parcels are mixed within the COlllillercial developments so the
development that has occurred in the center has been small commercial redevelopment.
Due to market demand, it is anticipated that the remaining vacant parcels will be
developed for commercial purposes not residential.
nnd Portland: Land availability and land assemblage and perhaps market demand appear
to be the primary factors. Most of the center is built-out in commercial uses and parking.
Some land with single family detached housing is located within the center. Lack of
demand for multi-family residential and the inability to assemble the single family
developed parcels appears to be a significant issue for this center.
Lower Portland: Land assemblage and lack of demand are the principal factors for this
mixed use center. The center has a mix of small undeveloped and developed parcels
many of which contain a single family detached structure. Land assemblage in this area
has been a problem as well as uncertainty relating to the Puyallup Tribe's development
-., plans. Many parcels in the area are either owned by the Puyallup Tribe or held in trust
making land assemblage difficult.
South 38th and G: Many opportunities for second story residential redevelopment exist
in this center. Building code and other development issues associated with rehabilitating
second story residential above existing commercial uses have contributed to the lack of
residential investment in this center. Although this center contains properties with
downtown views, the majority of the properties with this amenity are built-out with single
family detached housing. The assemblage of these properties along with the lack of
market demand had contributed to the lack of MF exemption projects.
15. Of the proiects completed, how many contain commercial space and of these, how
many are occupied and generating revenue?
Since the inception of the program in 1996, there have been applications for five mixed-
use projects having both housing and commercial space in the development. Of the five
proposed mixed-use projects, only Thea's Landing has been built. There is currently
only 500 sq. ft. of retail/commercial remaining for lease at Thea's Landing.
Commercial/retail tenants in the building include a sandwich shop, flower shop, specialty
pet store, art & framing shop, restaurant/night club, a medical consulting firm, and a
marketing& sales center for adjacent multi-family residential development.
16. When will the first Property Tax Exemption development come on the tax rolls?
Taxable improvements for the first MF Property Tax Exemption project will come on the
tax rolls in 2008, and is expected to generate $357,062 in propeliy tax. By 2014,
property taxes generated by projects coming back on the tax rolls is expected to exceed
$1 million per year, and by 2017 it is predicted that the projects that have come onto the
tax rolls will produce more than $4 million in tax revenues annually. These projections
6
are based on projects that have either been completed, are under construction, or have
been approved by City Council as of December 31, 2004.
17. How will we know when we are "done"?
The principle purpose of the program is to encourage multi-family housing in areas of the
City that have been determined to be residentially deficient. By policy the City of
Tacoma has determined that these areas of the City are those areas located within the
City's 14 mixed-use centers. The purpose of the mixed-use center designation is to direct
high density residential, employment and commercial growth into these areas in order to
meet the City's growth obligations under the State Growth Management Act. By
directing residential density and employment growth in the mixed-use centers, increased
transit use and other pedestrian friendly transportation options are encourage decreasing
development pressure and congestion in the City's single-family neighborhoods. Under
the City's Comprehensive Plan each mixed-use center is designated to develop to a
planned residential density and level of commercial activity. The tax incentive program
" is the primary tool for the City to use to achieve the planned residential activity in the
mixed-use centers. Not until the planned residential densiti~s are met and a level of
commercial activity is achieve to sustain a vibrant business environment will we know
that we are "done".
18. How many applications have been turned down and for what reasons?
Before an application is sent to Council, the staff works closely with the property owner
or developer to make sure the project meets program requirements, and to date, no
application brought before the Council has been disapproved.
19. Is the Property Tax Exemption Program available to affordable housing
developers?
Yes, it is available to both affordable and market-rate housing. In our experience,
however, affordable housing developers generally chose to use other tax incentive
programs that provide a greater financial benefit than the MF Tax Exemption Program.
For example, projects that provide housing for persons at or below 50% of the median
income and have State Housing Trust Fund money invested can get a tax exemption on
both the land and the improvements from the state. The same is true if a project has low-
income housing tax credit money invested and it serves low-income persons and/or
persons who have a disability.
20. What is the average price or average rent of housing created using the Property
Tax Exemption?
Rental rates have ranged from $550 for a one bedroom, one bath to $1,000-$1500/month
or more for a three bedroom, two and one-half bath with garage parking. Sales prices for
closed sales range from a low of $150,000 per unit to a high of $850,000, depending on
location, size and amenities.
7
Rental and lease-up times have been directly related to unit cost. The less expensive
units, $750 - $1,000 per month have rented in 2 to 4 months, and tend to have a low
vacancy rate (3% - 5%). The more expensive rentals, $1,000 to $1,500 per month have
taken as long as 2 years to rent. Once rented, they tend to also have low vacancy rates
(5% - 7%), but the apartment owner must be able to survive during the initial rent-up
period.
Renters in the more expensive units are primarily professionals, retired persons, and
military officers. Renters in the market rate units are professionals, blue collar workers,
teachers, nurses, police officers, firefighters, and service providers. Renters in the less
expensive units are service providers, nurses, teachers, blue collar workers, single
parents, and artists.
Purchasers of the market-rate units have been professionals, retired people, military, blue
collar workers, teachers, nurses, police officers, firefighters, and service providers. Sales
''"' to the high-end condo market have been to professionals, including attorneys, doctors,
professors, and administrators.
A serendipitous benefit of the program is that it has caused older multifamily
developments to be improved by the owners in order to remain competitive in the market.
This has resulted in a substantial improvement in the overall quality of housing in the
mixed use centers where new multifamily development has occuned.
8
NEW AND REHABILITATED MULTIPLE-UNIT DWELLINGS IN
URBAN CENTERS
PROPERTY TAX EXEMPTION
(Ch. 84.14 RCW/Ch. 13.17 TMC)
FAQ:
1. Does the City Council have the discretion to reject a property tax
exemption agreement even though the project may be located within a
residential target area?
", Answer: Yes, if the City Council finds that the terms and conditions of the
agreement do not satisfy state law, city code, or the guidelines established by the
City Council. '
State law sets forth at Chapter 84.14 RCW ("Act") the minimum eligibility
requirements for the tax exemption. The Act further authorizes the City Council
to establish guidelines for qualification that the City Council determines are
necessary to achieve compliance with the legislative purposes of the Act and that
establish basic requirements for new construction and rehabilitation for each
project. 1 The current guidelines are embodied within Chapter 13.17 of the
Tacoma Municipal Code ("TMC"); however, the City Council may, in its
discretion, establish additional guidelines through resolution or amendment to the
Tacoma Municipal Code ("City Code").
The Act contemplates that either the governing authority or a designated public
official shall approve or deny an application for a property tax exemption. The
City Code delegates this authority to the Economic Development Director.2 The
Act also requires that the approved applicant enter into an agreement with the
City on terms and conditions satisfactory to the City Council. This requirement is
found at TMC 13.17 .030(f)( 1) and specifically provides that the City Council, and
not the Economic Development Director, must approve the agreement. The City
Council, when approving or disapproving an agreement, may reject the
agreement if it is not satisfied that the agreement complies with the requirements
1 The Act lists, at two sections, examples of what the guidelines may include: height, density, public benefit features,
number and size of proposed development, parking, low-income or moderate-income occupancy requirements, other
requirements indicated necessary by the City (RCW 84.14.030), and requirements that address demolition and site
utilization and building requirements that may include elements addressing parking, height, density, environmental impact,
and compatibility with the existing surrounding property and such other amenities as will attract and keep permanent
residents and that will properly enhance the livability of the residential targeted area in which they are located,
RCW 84.14.040(5)(a)&(b)
2 The reason for this delegation of authority is likely based upon the statutory requirement that an appeal of the decision
to deny or grant an application shall be made to the City Council. RCW 84.14.070(4).
Property Tax Exemption -1-
cdb/memo/Prop Tax Exemp Memo FINAL 4-19-05.doc cdb/lad
that are imposed through the Act, the City Code, or the guidelines adopted by the
City Council. Thus, the City Council may exercise its discretion by undertaking
an individualized review of the facts to determine whether or not the terms and
conditions of the agreement meet these requirements.3
2. Can the City Council use a low ratio of new housing units to those torn
down and replaced as a reason for declining to grant a property tax
exemption?
Answer: Yes, if the City Council includes this ratio within the guidelines.
State law already imposes a minimum number of new housing units in certain
circumstances and further provides that the purpose of the chapter is to increase
residential opportunities. If the City Council determines that a minimum ratio is
necessary to achieve a greater number of housing units, this seems well within
the purpose and authority of the Act.
.......
3. Can the City Council use the presence or absence of high value or
low-cost/affordable condominium or rental units as a reason for declining
to grant or for granting only limited property tax exemptions?
Answer: Yes, if the City Council includes these requirements within the
guidelines.
The governor explained in his partial veto of the Act that the legislative intent
behind the Act was, in part, to provide local governments flexibility to address the
public interest in the need to maintain a supply of housing, including low-income
housing. Further, the legislation does not preclude and, in fact, encourages cities
to consider their housing needs in the context of their growth management plans
when implementing the provisions of the Act. Thus, the City Council, when
establishing its tax exemption guidelines, may therefore take into account such
considerations as the presence or absence of high value condominium or rental
units.
4. Does the City Code permit multi-family property tax exemptions in any
Mixed-Use Center or only in areas of such centers that qualify or are found
to lack "sufficiently available" housing? In this regard, is the City's
ordinance consistent with the state's statute?
Answer: Mixed-Use Centers must meet the requirements of the Act to qualify as
a residential targeted area, including the requirement that there is insufficient
availability of housing. The City Code is not inconsistent with the Act.
] As always. the City Council must act in a nondiscriminatory manner, cannot be arbitrary or capricious, and, in these
circumstances, must exercise its discretion in a manner that is rationally based. upon the legislative goals and the
guidelines established by the City Council.
Property Tax Exemption -2-
cdbfmemo/Prop Tax Exernp Memo FiNAL 4-19-05.doc cdbilad
The Act requires that new or rehabilitated multiple-unit housing must be located
in a residential targeted area, as designated by the City, to qualify for the tax
exemption. A residential targeted area must meet three criteria paraphrased as
follows: (a) it must be inan "urban center" (same as a Mixed-Use Center), (b) it
must lack sufficiently available residential housing, and (c) it must be found that
providing additional housing will assist in achieving one or more of the stated
purposes of the Act.4 Mixed-Use Centers that do not meet all three requirements
will not qualify as a residential target area. Thus, a location will not qualify solely
because it is a Mixed-Use Center.
The City ordinance mirrors, in substance, the requirements of state law, including
the definition of "Mixed-Use Center," which has essentially the same meaning as
"urban center" under Chapter 13.17 TMC.
5. Does the City Council have the legal authority to adjust the property tax
'" exemptions it awards in any of the following ways (whether by geography
or the circumstances of individual applications)? .
a. By number of years for which the exemption will be allowed?
Answer: No.
The term of the exemption is fixed by state law at ten years, unless the
exemption is cancelled, as provided at RCW 84.14.110.
b. By percentage or dollar amount for which the exemption will be allowed?
Answer: No,
The property to which the exemption applies is fixed by state law;
however, the City Council may, through its established guidelines, limit the
number of dwelling units to which the property tax exemption will apply.
d The full text of these three requirements is as follows:
(1) The following criteria must be met before an area may be designated as a residential targeted area:
(a) The area must be within an urban center, as determined by the governing authority;
(b) The area.must lack, as determined by the governing authority, sufficiently available, desirable, and convenient
residential hOLlsing to meet the needs of the public who would be likely to live in the urban center, if the desirable,
attractive, and livable places to live were available; and
(c) The providing of additional housing opportunity in the area, as determined by the governing authority, will assist in
achieving one or more of the stated purposes of this chapter. RCW 84.14.040.
Property Tax Exemption -3-
cdb/memo/Prop Tax Exemp Memo FINAL 4-19-05.doc cdb/lad
c. To some housing units or portions of some housing units within a larger
project but not to other units or other portions of units within the same
larger project? (e.g., perhaps on basis of sale price, valuation, or rental
amount).
Answer: Yes.
See answer to (b) above.
6. Would the state statute or City ordinance--or both--need to be amended
to provide the City Council with any of the above discretions to customize
property tax exemptions to specific Mixed-Use Centers or projects?
Answer: With regard to (a) and (b) above, the answer is yes. With regard to (c),
the answer is no.
'" As explained above, the City Council does not have authority to change the term
of the property tax exemption or the dollar amount. However, it may implement
guidelines that would have the effect of limiting application of the property tax
exemption to certain types of residential units within a development. To do this,
the City Council must find that such guidelines are necessary to further the
purposes of the Act.
7. Does the City have the authority to require certain wage levels or
average wage levels to be required on construction projects for property
tax exempt projects?
Answer: Yes, but only if the City Council can establish a rational relationship
between wage levels and the purposes of the Act.
The purpose of the Act is generally to (a) encourage residential opportunities and
(b) to stimulate the construction of new multi-family housing and the rehabilitation
of existing vacant and under-utilized buildings. If the City Council finds a rational
relationship between wage levels on such tax exempt construction projects and
one or more purposes of the Act, then the City Council arguably has the authority
to impose such conditions as part of the guidelines for project eligibility.
However, an argument can be made that the guidelines not only must be
rationally based upon achieving one or more of the purposes of the Act, but also
must fit within the categories of those guidelines listed in the Act.5 The precise
scope of what may be included within the guidelines is an open question.
5 However, it should be noted that the Act may preclude guidelines that do not fit within the categories listed at
RCW 84.14.030 or 040. The statutory rule of construction "expression unius est exclusion alterius" means the expression
of one is the exclusion of the other. If applied, this rule of construction means that if the legislature specifically list things
upon which the statute operates, there is a presumption that the legislative body intended all omissions. In this case,
there may be a presumption that the City Council can only establish guidelines that are within the categories expressed in
the statute. On the other hand, this presumption may not prevail because the statute at RCW 84.14.030 also provides
that the City Council may consider other requirements. How the courts might interpret the statute and the scope of the
guidelines the City Council may adopt is an open question.
Property Tax Exemption -4-
edb/merno/Prop Tax Exernp Memo FINAL 4-19-05.doc cdb/lad
8. Does the City have the authority to require applicants, as part of their
current applications for property tax exemption projects, to submit data
and analysis regarding the construction and sale or rental costs,
occupancy, current and past ownership, etc., for past projects?
Answer: Yes, but only if the City Council can establish a rational relationship
between these requirements and the purposes of the Act.
If the City Council can find a rational relationship between the foregoing criteria
and the purpose of the Act, then the City Council arguably has the authority to
impose such conditions as part of the guidelines for project eligibility.
",
Property Tax Exemption -5-
cdb/memo/Prvp Tax Exemp Memo FIi',AL 4-19-05 doc cdb/iad
DEPARTMENT OF
COMMUNITY DEVELOPMENT
MEMORANDUM
To: Council President Cecil McConnell and City Council Members
From: Chris Hugo, Director
Date: April 5, 2006
Re: "MULTI-FAMILY TAX INCENTIVE" In Urban Centers
-" In 1995, the State Legislature enacted Chapter 84.14 RCW New and Rehabilitated Multiple-
Unit Dwellings in Urban Centers, more simply known as"the Multi-Family Tax Incentive.
Bremerton is eligible to utilize this incentive program to induce new multi-family development
in places consistent with the growth strategy presented in the new Comprehensive Plan. The
following information summarizes the most salient provisions of this law:
A. Purpose
It is the purpose of this statute to encourage increased residential opportunities
within urban centers in cities that are required to plan or choose to plan under the
Growth Management Act where the legislative body of the affected city has found
there is insufficient housing opportunities. It is further the purpose of this statute to
stimulate the construction of new multifamily housing and the rehabilitation of
existing vacant and underutilized buildings for multifamily housing in urban
centers having insufficient housing opportunities that will increase and improve
residential opportunities within these urban centers. To achieve these purposes,
this statute provides for special valuations for eligible improvements associated
with multiunit housing in residentially deficient urban centers.
The value of new housing construction, conversion, and rehabilitation
improvements qualifying under this statute is exempt from ad valorem property
taxation for ten successive years beginning Jan. 1 of the following year.
B. Eliqible Districts
Utilization of this incentive is restricted to "urban centers," d~fined in the statute
as: a compact identifiable district where urban residents may obtain a variety of
products and services. An urban center must contain: (a) Several existing or
previous, or both, business establishments that may include but are not limited to
1
shops, offices, banks, restaurants, governmental agencies; (b) Adequate public
facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary
sewer systems; and (c) A mixture of uses and activities that may include housing,
recreation, and cultural activities in association with either commercial or office, or
both, use.
C. Designation of "Residential Targeted Area"
1. To create an eligible district, the City shall designate a "residential targeted
area" that meets the following criteria:
a. The area must be within a designated urban center,
b. The area must currently lack sufficient available, desirable, and
convenient housing; and
c. Additional housing in the area will assist the stated purposes of the
statute.
2. Notice and a Council public hearing are required for designation.
", 3. Designation requires adopted findings that the criteria above have been met.
4. After designation, the Council shall adopt standards and guidelines that may
include the following: requirements that address demolition of existing structures
and site utilization; and building requirements that may include elements
addressing parking, height, density, environmental impact, and compatibility with
surrounding properties.
D. Requirements for Application
1. The project must be located in a "residential targeted area" designated by the
City (see section C., above);
2. The housing must meet local guidelines such as height, density, public benefit
features, number of units, size of development, parking, and income-based
occupancy;
3. The project must provide for a minimum of fifty percent of the space for
permanent residential occupancy and may have to provide four or more new
units;
4. The project must be completed within three years from date of City approval;
5. The applicant's agreement to the conditions of approval must be in the form of
a contract with the City.
. Page 2
:McCament & 'RoBers 708 'Broaaway, Suite 170, 'Tacoma, 'W j\ 98402
253- 284-5702
July 5, 2006
Bremerton City Council
345 Sixth Street, Suite 600
Bremerton, WA 98337
Dear Council President McConnell and Council Members:
RE: Multi-Family Tax Exemption (MFTE) Program
Ordinance No. 4968
Thank you for the opportunity to comment on proposed Ordinance No. 4968. I attended
the May 9, 2006 Council Study Session and have since met with Council President
McConnell and apartment developer John Stephanus to request the following actions:
. Include for-rent residential in the Multi-Family Tax Exemption Program at this
time, and,
. Designate "City Center Residential" (CCR) zoning as a "residential targeted area"
and include all areas zoned CCR in an urban center.
At the Council Study Session, the Council's intention to restrict the MFTE program to
for-sale residential units was supported by a desire to increase home ownership in the
urban core and eliminate any possibility of the City fmancially supporting property
owners who perpetuate substandard housing. Both objectives are laudable, but don't
necessarily hinge on eliminating for-rent housing from the tax exemption program.
There are several reasons for taking another look at for-rent residential and how this
product type is important to the revitalization of the community:
. New construction and renovation of existing buildings can be expected to upgrade
the current housing stock. When new projects come on line, it provides a choice
in the market that didn't exist before and residents have a tendency to move out of
less desirable housing if the new product is priced competitively.
. Existing substandard, vacant or underutilized buildings are a drag on the
community, create a poor image and generate minimal property taxes. The tax
exemption program can be used to bring some buildings back to life, but chronic
or non-existent property management could more effectively be dealt with using
of
other legislation such as a Minimum Building and Structures code, Junk Vehicles
Ordinance and the City's Business Licensing ordinance to bring positive change.
. By constraining new for-rent residential, people who need to rent or choose to
rent have few choices but to opt for what's already available in the market. By
default, eliminating for-rent residential from Ordinance 4968 shelters existing for-,
rental properties in the residential targeted area from competition.
. Every development must be financially sound to qualify for construction and
long-term fmancing. The MFTE will not be used by a financial institution to
justify a loan that does not meet basic requirements for market demand, loan-to-
value ratios, net operating income, ability to service debt, etc. Experience has
shown that only about 50% of all projects receiving MFTE approval are built
within the three-year limit outlined in state statute. The market and the
willingness of developers and lenders to take an acceptable risk is the deciding
factor.
The benefits of the tax exemption can be expected to be shared by both developers and
residents. The consumer benefits from lower rents in a competitive market, diversity and
the availability of housing choices. For the developer, it is a financial incentive to offset
risk, improve the economic viability of a project, and acts as a hedge against unexpected
or increasing costs now being experienced in the construction industry. Perhaps one of
the greatest benefits to be achieved is that a developer can hope to attract residents to a
high density development in an urban location and thus compete with the lower density
suburban developments that put more cars on the road.
In closing, we encourage the Council to consider the advantages of including for-rent
residential in Ordinance No. 4968 from the outset, as well as recognizing "City Center
Residential" (CCR) zoning as areas slated for high-density development and thus
including these areas in urban centers.
Sincerely yours,
fifAJttmmt
J.J. McCament
Attachment: For-Rent Pro Forma Analysis, Bremerton Gardens
'.
'.
Rental Proforma - Bremerton Garden Apartments Expansion
June 2006
Bremerton Garden Apartments - Phase II Expansion
Annual Annual
With MF Exemotion w/o MF Exemotion
Income
Total Ooeratina Exoenses
Janitorial, building maintenance,
utilities, insurance, advertising, admin,
property taxes
$ 2,100,000 $ 2,100,000
$ 157,500 $ 157,500
$ 1,942,500 $ 1,942,500
$ 42,000 $ 42,000
$ 1,984,500 $ 1,984,500
$ 580,000 $ 800,000
Gross Rents @ 100%
Less Vacancy @ 7.5%
Other Income
Parking for Residents
Gross Income
Net Income Before Debt Service
1,404,500
$
1,184,500
Net Income after Debt Service
$
$
$
1,388,182
16,318
$
$
1,388,182
Debt Service
(203,682)
Bremerton Gardens Debt Coverage Ratio
FNMA Required Debt Coverage Ratio
1.01
1.25
0.85
1.25
Assumotions
Construction of 200 new market-rate apartments
$19M construction budget ($95,000/unit x 200 units)
Equity Requirement: $3.8M (20% of $19 million)
Average RentIMo: $875/mo/unit
Operating Expenses: $4,OOO/unitiyear
Vacancy Rate: 7.5% average
Permanent Financing: $19 million x 6.5% x 35 years
Ppty Tax Rate: $11.6241/$1,000
Bremerton Gardens Assessed Value, 2006: $3,664,000 ($527,520/Iand + $3,136,480 improvements)
Property Tax on Bremerton Gardens, 2006: $42,592
Property Tax on Bremerton Gardens, Phase II: $220,858
($19 million x $11.6241/$1000=$220,858)
Commiss;/JJlers:
KIrSAP COUNTY CONSOLIDATED
HOUSING AUTHORITY
PA1TY LENT. Chair
KATHRYN QUADE, Vice Chair
KIM ABEL
JAN ANGEL
CHRIS ENDRESEN
TROY ERICKSON
DARLENE KORDONOWY
Executive Director
NORMAN McLOUGHLIN
July 5,2006
Cecil McConnell, Council President
Bremerton City Council
345 6th Street, 6th Floor
Bremerton, WA 98337
Dear Cecil,
We understand that the City Council is scheduled to consider an ordinance relating to exemptions from ad
valorem property taxation for new multi-family housing in designated urban centers of the City. We are
very concerned to hear that the ordinance, as currently drafted, excludes apartments from taking advantage
of the ad valorem property taxation exemptions. We feel this is a serious error.
Recently, Bremerton has been getting a lot of mention in the paper for its high crime rate. In a recent
article, the Kitsap Sun, points out that Bremerton's high crime is due in part to absentee landlords owning
decrepit properties that are poorly managed. The best way to make a positive change is to encourage
competition that will bring quality rental opportunities. This change can come about by including
apartments in this ordinance.
We are all aware of the issue that Bremerton has a high proportion of rental versus owner occupied
housing. That problem, however, is caused by substandard single family rentals, not the kind of structures
this ordinance will encourage if amended to include apartments. Your minimum occupancy size of 10
units or more already included in the draft ordinance will ensure the property owners who are currently
responsible for Bremerton's substandard rentals are kept out of this market. You only need to look to
Tacoma to see the quality condominiums and apartments that have sprung up in the wake of a similar
ordinance.
Amending this ordinance to include apartments is another key step in the renaissance of Bremerton. It is
also important in creating the critical mass of population necessary to support a destination grocery store
and other retail. We strongly urge you to make this amendment before acting on the draft ordinance.
Respectfully,
~unt
Board Ch Ir
. Mailing Address: 9307 Bayshore Drive NW "Silverdale, Washington 98383-9113
Delivery Address: 345 6th Street" Suite 1 00 "Bremerton, Washington 98337
(360) 337-5600" TDD (360) 535-6106 " Fax (360) 337-7082
ht.W:/lwww.kccha.ora "a HUD approved certifted Housing Counseling Agency
{it~ L~(
. FIRST I WOULD LIKE TO THANK YOU FOR YOUR RECENT SUPPORT
OF THE 60 FT BUILDING HEIGHTS DESIGNATION FOR THE
NEIGHBORHOOD NORTH OF 6TH STREET ALONG PLEASANT AND
HIGHLAND AVENUES. THIS WAS AN IMPORTANT PART OF
BREMERTON'S REVITALIZATION.
. BREMERTON HAS COME A LONG WAY BECAUSE YOU HAVE
WORKED TO SUPPORT HEALTHY REVITALIZATION POLICIES.
. AS CHAIR OF THE BOARD FOR KCCHA, BREMERTON'S RENEWAL
AGENCY- I ASK YOU TO SUPPORT THE MULTI FAMILY TAX
EXEMPTION ORDINANCE AND I ASK YOU TO AMEND THE
ORDINANCE TO INCLUDE APARTMENTS FOR TAX EXEMPTION AS
WELL AS CONDOS.
· YOU KNOW THAT BREMERTON ALREADY HAS A HIGH PERCENT AGE
OF RENTAL UNITS, PRIMARILY SINGLE FAMILY TO TRIPLEX IN SIZE.
MANY OF THESE ARE OWNED BY ABSENTEE LANDLORDS.
. INCLUDING APARTMENTS, WHICH HAVE ON-SITE MANAGERS, IN
THIS ORDINANCE WILL RAISE THE STANDARDS FOR EXISTING
RENTAL PROPERTY OWNERS TO REGULATE AND MAINTAIN
EXISTING UNITS.
. THE BEST WAY TO MAKE A POSITIVE CHANGE IS TO INCLUDE
APARTMENTS IN THIS TAX EXEMPTION ORDINANCE. THIS WILL
ENCOURAGE HEALTHY COMPETITION AMONG RENTAL OWNERS TO
BETTER CARE FOR AND MAINTAIN THEIR UNITS.
. THIS IS ANOTHER IMPORTANT PART OF BREMERTON'S
REVIT ALIZA TION THAT WILL BRING PHYSICAL REHABILITATION
AND HEALTHIER HOUSING OPTIONS TO THE BREMER TON
COMMUNITY. IT IS ALSO IMPORTANT IN CREATING THE CRITICAL
MASS OF POPULATION NECESSARY TO SUPPORT A DESTINATION
GROCERY STORE AND OTHER RETAIL IN THE DOWNTOWN CORE.
".
GROUP INCORPORATED
July 5, 2006
Bremerton City Council
345 Sixth Street, Suite 600
Bremerton, WA 98337
Attention: Mr. Cecil McConnell, Council President
Dear Mr. McConnell & Council Members:
RE: Multi-Family Tax Exemption (MFTE) Program
Ordinance No. 4968
The proposed Multi-Family Tax Exemption ordinance before you has the potential of being one
of the City's most effective economic development tools in bringing about the economic
revitalization of Bremerton's urban neighborhoods. As a private developer already doing
business in Bremerton, I'm excited about the prospect of working with the City as a partner to
bring about new development. There are two actions we are asking the Council to take in
partnership with the private sector to bring about desired high-density development:
I. Include for-rent residential in the Multi-Family Tax Exemption Program, and,
2. Designate City Center Residential (CCR) zoning as a "residential targeted area" and
include areas zoned CCR in an urban center.
My company owns and manages over 3500 apartments in the Puget Sound region. Bremerton
Gardens on Parkside Drive has been one of our properties for the past two decades and provides
affordable, clean, and secure homes for those who work in the Bremerton area. We pride
ourselves at Armco as having one of the best maintained rental properties in Bremerton,
consistently remaining in the top 10%. We are in the process of replacing roofs on the 14
buildings and expect to spend close to $200,000 this year alone to add to the similar amount we
spent over the last two years on this re-roofing project. We don't want to stop there, however, and
that's where a private-partnership becomes the deciding factor.
We want to build and manage more apartments in the urban core of this community. Our first
proposed project is the expansion ofBremerton Gardens with 200 new apartments. The new
construction would necessitate upgrading the existing apartments to make the two phases of
development more compatible with one another. The two projects total about $21 million budget:
Asset Management
I
~~
MOCO
lNC.
~
~I(
219 East Garfield Street · Suite 600 · Seattle, Washington 98102 · 206.505.6800 · Fax 206.505.8205
,-'
$ 1 9 million in new construction and $ l.8 million to upgrade the 18 1 existing apartments with
new washers and dryers, additional landscaping, decks and upgraded kitchens and baths.
The rub is that finances for the two projects are intertwined. Even though J own the land already,
new construction still isn't economically viable without the benefits of the Multi-Family Tax
Exemption, and there is no compelling reason to upgrade the existing apartments unless new
construction takes place.
The attached rental pro forma compares the impact of a Multi-Family Tax Exemption on
proposed new construction. As shown, the Multi-Family Tax Exemption closes the gap but
doesn't eliminate it. Using the tax exemption and a standard 20% developer equity requirement,
the project doesn't quite meet FNMA required debt coverage. Without the tax exemption, the
proposed transaction falls far short of the debt coverage requirement and would not be bankable.
To understand the financial impacts to the City of Bremerton if the expansion project went
forward, we asked an economist, Greg Easton of Property Counselors, to do a quick analysis.
Mr. Easton is familiar with the Multi-Family Tax Exemption program and completed a detailed
analysis for the City of Tacoma last year when the Council evaluated their program. I am
including a copy of his analysis for your review including estimates for one-time taxes on
construction as well as annual taxes that would be collected over the lO-year exemption period
for utilities, sales tax, and the per capita distributions from the State of W A.
There are many benefits to be realized with a public-private partnership using the Multi-Family
Tax Exemption to bring desirable high-density multi-family development to Bremerton.
Improved and upgraded rental housing puts pressure on all multi-family developers to improve
their properties in order to stay competitive in the marketplace. Local residents benefit from the
choices presented by developers willing to take a risk and bring new product to the market.
In closing, J would ask the Council to take a close look at the benefits of using the Multi-Family
Tax Exemption to encourage sound financial investment in the community while providing
housing choices for those who live and work in our community.
~
U
I J hn Stephanus
; Attachment: Economic Analysis Prepared by Greg Easton, Economist, Property
Counselors, Seattle
~
----
Jr'
07/05/06
Bremerton Tax ExemptionEaston7 5 06.xls
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Property Tax Exemption Program
Bremerton Gardens Expansion
City of Bremerton
Annual Exempt Prooertv Taxes
Improvement Value 19,000,000
Total Exempt Property Taxes $11.62 220,857
City Exempt Property Taxes $3.30 62,700
Annual Taxes after 10 Years
Improvement Value (I % / yr.) 20,987,820
Total Annual Property Taxes $11.62 243,964
City Annual Property Taxes $3.30 69,260
One-time Taxes on Construction
Construction Value 19,000,000
City Sales Tax on Construction 0.84% 159,600
Annual Taxes on Resident Purchases
Housing Units 200
A vg. Household Size 2.0
Total Population 400
Taxable Spending/Capita 9,105
Taxable Sales 3,642,000
Annual City Retail Sales Tax 0.84% 30,593
Annual Utilitv Tax
Housing Units 200
A vg. Ann. Utility Expense 2,000
Total Utility Expenses 400,000
Annual Utility Tax 7.0% 28,000
Annual Per Caoita Distributions from State
Housing Units
A vg. Household Size
Total Population
Distributions per Capita
Annual Distributions
200
2.0
400
36.00
14,400
July 5, 2006
Draft: For Review and Comment Only