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Home My WebLink About07/02/2008 AGENDA . '." 'T'Sr~ r ' 'r.'If~, ' :: ~'J~t~.. '" . FILE CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337-1873 D (360) 473-5280 ***AMENDED*** JULY 2, 2008 CITY COUNCIL MEETING AGENDA 1. BRIEFING: 5:00 - 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business B. 15-Minute$ Executive Session to discuss "Pending Litigation" per R.C.W. 42.30.110(1 )(i) 2. CALL TO ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS A. Pledge of Allegiance B. Invocation 3. MAYOR'S REPORT 4. ANNOUNCEMENTS & PUBLIC RECOGNITION 5. CONSENT AGENDA A. Claims & Check Register (#AB08-151) B. Minutes of Special Meeting - June 16, 2008 (#AB08-152) C. Minutes of Study Session - June 25, 2008 (#AB08-153) D. Budget Adjustment to eliminate one Engineering Technician III position, and to add one Engineering Technician N position in the Department of Public Works (#AB08-154) E. Grant of a Temporary Easement through City Utility Lands to Puget Sound Energy (PSE) (#AB08-155) F. Resolution No. 3066, setting a hearing date of August 20, 2008 to vacate a portion of the alley between Burwell Street and the existing mid-block alley bounded also by 4th Street and Washington & Pacific Avenues (adjacent to the former City Hall properties) (#AB08-156) G. Interlocal Agreement (ILA) with Kitsap County for preparation of a new Comprehensive Solid Waste Management Plan (#AB08-157) H. 10-Year Utility Services Contract with the United States Navy for Water, Wastewater, and Stormwater Services (#AB08-158) I. Budget Adjustment for the 2008 Professional Services Budget in the Legal Department (#AB08-159) 6. GENERAL BUSINESS A. Application for 2008 Justice Assistance Grant for Equipment Funding (#AB08-160) B. Resolution No. 3065, authorizing a Sole Source Contract and Goods & Services Agreement for the purchase of a Restroom Building Package for Blueberry Park from ROMTEC, INC. (#AB08-161 ) C. Legal Services for NPDES II Permit Appeal (#AB08-162) 7. COUNCIL MEMBER REPORTS 8. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING fI 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 Monday preceding the Council meeting. DATE SUBMITTED: 7/2/2008 BILL # AB08-151 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5A ............................................................................................ SUBJECT: Committee Meeting Date: COUNCIL MEETING Date: July 2, 2008 Department: Financial Services Presenter: Cathy Johnson Phone: 473-5296 Claims & Check Register SUMMARY: Consent Agenda item. Approval of checks and electronic fund transfers. ATTACHMENTS: Check Register. FISCAL IMPACTS (Include Budgeted Amount): APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: COMMITTEE CHAIR COUNCIL PRESIDENT: ~JM{- ?' P CONSENT AGENDA C2J GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: 1) Check #'s 325379 through 325691 and EFT's 7930 through 7975 in the amount of $4,141,108.88. 2) Regular Payroll for the pay period ending June 15, 2008 in the amount of$729,250.00. 3) Retiree Payroll for the pay period ending June 15, 2008 in the amount of$78,531.10. COUNCIL ACTION: C2J Approve D Deny D Table D Continue D No Action AGENDA BILL CITY OF BREMERTON CITY COUNCIL 08 - f 5 ~ DATE SUBMITTED: BILL # 58 ........................................................................................ /1 S' pur ~ \ 'M (.. e.t< Y\. ~ " SUBJECT: City Council Meeting Minutes Committee Meeting Date: N/A for meeting of COUNCIL MEE~ING Date: ~J ~.2 ':> nn ~ rl10VlJ~ '( ~u t'\ e.. I" 200 B Department: City ouncll ) I Presenter: Will Maupin, Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting held MontA.Q.'1 ) ~vn~ '~l 2..Ooe. ATTACHMENTS: Meeting Minutes for Movtd..O-'1 ) :r UI'1e- I "J .2...Do g, FISCAL IMPACTS (Include Budgeted Amount): N/A APPRO V ALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: Council President N/A N/A N/A COMMITTEE CHAIR COUNCIL PRESIDENT: ~ ~a;~~ CONSENT AGENDA [B'" GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: 0 Approve 0 Deny 0 Table o Continue 0 No Action DIGITAL RECORDING CITY COUNCIL SPECIAL MEETING MINUTES Monday, June 16, 2008 The Special Meeting of the City Council of the City of Bremerton Jwas called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6t11 Str~et, Bremerton, Washington, Monday, June 16, 2008, at 5:30 PM, with Council President Will Maupin presiding. Council Members present were Nick Wofford, Carol Arends, Dianne Robinson, Mike ShepHerd, Roy Runyon, Adam Brockus, and Brad Gehring. Council Member Cecil McConnell was absent. AI!so present were City Attorney Roger Lubovich; City Clerk Carol Etgen; and Legislative Assistant Lori $mith. I The Pledge of Allegiance was led by Council Member Brad GehrinQ followed by the invocation provided by Associate Pastor Dennis Huelle of Peace Lutherah Church. President Maupin announced that prior to the meeting, a Briefi~g was held to discuss General Council Business; and that a Special Meeting of the Council was being h1eld tonight on Monday, June 16, 2008 because a majority of the Council Members will be in Yakima thi[ week for the Association of Washington Cities Annual Conference. MAYOR'S REPORT · In the Mayor's absence, Community Development Director .6jndrea Spencer was pleased to announce that the City received the "2008 Smart Communl1ties Award" from Governor Gregoire for the City of Bremerton's development of the Downtown Regional Center Sub Area Plan; and provided framed certificates to each member of the councilj PUBLIC RECOGNITION & ANNOUNCEMENTS Roy Runyon reiterated that the next District 4 Meeting would b held on Tuesday, June 17, 2008 beginning at 5:30 PM in the Council Conference Room of the Ndrm Dicks Government Center for a program on "Pets in the City"with Rance McEntyre of the Kitsap! Humane Society. Dianne Robinson encouraged citizens to attend the 4th Annuall"Juneteenth Celebration" this Saturday, June 21, 2008 from 12:00 to 6:00 PM at Evergreen Park. CONSENT AGENDA A. Check Numbers 325077 through 325378; and EFT-7906 thr ugh EFT-7929 in the amount of $2,255,697.81; and Regular Payroll in the amount $774,2081.71 for the pay-period ending May 31, 2008 (#AB08-143) B. Minutes of Meeting - June 4,2008 (#AB08-144) C. Minutes of Meeting - June 11,2008 (#AB08-145) D. Renewal of Monitoring Well Lease with U.S. Navy at N.A.D. Park (#AB08-146) E. Contract Award for Construction of Southwest Bremerton Residential Sewer Extension Pump Station to PIVETTA BROTHERS CONSTRUCTION, INC. (#AB08-147) There were no comments from the public. . . 05:37:24 M/S/C/U (Runyon/Wofford) Move to approve the CONSENT AGENDA as presented. GENERAL BUSINESS I 6A - CONTRACT AWARD FOR CONSTRUCTION OF HARLdw DRIVE PEDESTRIAN IMPROVEMENTS TO SERPANOK CONSTRUCTION (#AB08-148): City Engineer Michael Mecham stated that sealed bids for construction of the project titled "Harl~w Drive Pedestrian Improvements" were opened on June 3, 2008. The engineer's estimate for con1struction of the project is $188,266.40. Two bids were received for this project; and SERPANOK CONSTRGCTION was the lowest responsive, responsible bidder with a bid of $163,435.30 including sales taxl.- A PowerPoint@ presentation was made to show further details of the project City Council Special Mtg. Minutes Monday, June 16, 2008 Page 2 of 4 There were no comments from the public. Mr. Shepherd encouraged the City to consider a policy for use of pervious pavement in all future similar projects. Public Works Director Phil Williams assured the Council that his Department is currently working on a policy for permeable asphalt. Mr. Maupin hoped that this project will improve safety in the neighborhood and encourage more people to walk. 05:49:15 M/S/C/U (Wofford/Runyon) Move to award the contract in the amount of $163,435.30 including sales tax with SERPANOK CONSTRUCTION for construction of the project titled "Harlow Drive Pedestrian Improvements"; and authorize the Mayor to finalize and execute the necessary contract documents for construction. 6B - RESOLUTION. NO. 3062, AUTHORIZING EXPENDITURES OF FUNDS RECEIVED FROM THE 2008 EMERGENCY MEDICAL SERVICES (EMS) LEVY BALLOT MEASURE (#AB08-149): Fire Chief AI Duke summarized that this resolution will identify where the funds would be expanded if the citizens pass the 2008 EMS Levy Ballot Measure. As presentations are starting to be made on the ballot measure, this resolution will enable them to show where the revenues would be spent. It was explained that the current EMS Levy will expire December 31,2009. There were no comments from the public. Mr. Runvon asked for the status of the current EMS funding. Chief Duke answered that current funding is about $1.2 million. Ms. Robinson asked if the levy did not pass, when would the next opportunity be to put the levy on the ballot. Chief Duke stated that the levy could be placed on the ballot during the next election in 2009. 05:53:38 M/S/C/U (Arends/Gehring) Move to pass Resolution No. 3062. 6C - RESOLUTION NO. 3063 (NORTH) AND RESOLUTION NO. 3064 (SOUTH), APPROVING ANNEXATION PROCEEDINGS FOR TWO TERRITORIES IN THE SOUTH KITSAP INDUSTRIAL AREA (SKIA) (#AB08-150): Community Development Director Andrea Spencer explained that the action before Council is the consideration of two annexation petitions in the South Kitsap Industrial Area (SKIA). The two petitions were presented on April 22, 2008 and are described as the "SKIA North Petition" and the "SKIA South Petition". As required by state law, the petitions include the signatures by owners of not less than 1 0% of assessed property value in the area proposed for annexation (in fact, the petitions contain signatures of 1 00% of the owners). State law requires that the City Council conduct a meeting with the petitioners within 60 days of petition submittal and staff has timely scheduled this meeting to occur on June 16, 2008. Following the meeting with the petitioners, the City Council has the option to accept, reject, or geographically modify the petitions. Should the Council decide to accept the petitions, the proposed resolutions presented with this report will do so and will allow the annexation to proceed to the next step, gathering of signatures on the "75% Petition". A PowerPoint@ presentation was provided to discuss the details of the "Urban Services Overview", specifically financial details of the three scenarios (Scenario A "Low Growth"; Scenario B "High Growth"; and Scenario C "SKIA Sub Area Plan"). Finance Director Laura Lvon discussed the costs related to Fire/EMS protection and Police protection for the various scenarios; and Public Works Director Phil Williams discussed details of the various scenarios regarding the infrastructure, including Transportation, Water, Stormwater, and Wastewater Management. City Council Special Mtg. Minutes Monday, June 16, 2008 Page 3 of 4 Public comments began at 6:58 PM... David Overton, one of the property owners of the proposed area, requested that the Council approve this 10% petition tonight. . DOUQ Scrobut, President of the McCormick Land Company, also encouraged approval tonight. Rod Reid, President of Alpine Evergreen Company, commented that he was also a part of this annexation area and echoed the previous comments of support. Chervl Kincer, Port of Bremerton Commissioner for District NO.1 which includes the City of Bremerton, also encouraged this action. She presented a handout titled "Port of Bremerton Discussions with Developers and Development Professionals" dated April 2 & 3, 2008 and read the positive points listed for "pursuing annexation into the City of Bremerton". Garv Bolster, Liberty Business Center, discussed a concern with stormwater run-off near Lake Lindy. Mr. Williams believed that the City would work with Mr. Bolster and residents whose property would be within the City's boundaries in order to maximize use of property and limit run-off, as well as avoid construction in wetland areas. Main Motions were made at 7:11 PM... Discussion then took place by the Council... Mr. Shepherd emphasized that rural planners typically do not take on projects that are industrial in nature and that the City's planners would better address future projects in the proposed annexation area. Mr. GehrinQ provided positive comments and also asked who would provide the cost for maintaining the streets. Mr. Williams stated it depends where the street was located within SKIA but he estimated that maintenance support could come from the Port of Bremerton, the developers, and City funds. Ms. Robinson provided comments in support of these resolutions; and thanked the staff for all the time they have put into this effort; but asked for clarification on what "U.L.I.D." stood for? Ms. Lvon answered that a "U.L.I.D." is a Utility Local Improvement District, which allows the City to acquire low- interest financing to construct a project; and then property owners who benefit from the improvements share the costs in constructing the project by paying for the debt over a set period of time. Mr. Runvon stated his main concern was financial stability, but is now satisfied that we will not be adding a burden to the ratepayers. He further commented on the indirect benefits that not only Bremerton itself will receive, but the surrounding communities will receive as well. Mr. Wofford asked for confirmation that the money for utility rate financing will come from the businesses within SKIA. Ms. Lvon stated the burden would come from and be shared by those who would be developing the property. Mr. Brockus clarified that this vote tonight only sets the boundaries; and asked if there other options for other utility districts to provide services. Mr. Williams stated yes to both comments. Mr. Maupin commented that the Urban Growth Area abuts the City so the City has an obligation to consider this annexation to prove the City can service this area and provide infrastructure to handle growth without placing a burden on the current ratepayers. 07:29:08 M/S/C/U (Shepherd/Brockus) Move to pass Resolution No. 3063 accepting the proposal to commence annexation proceedings for the territory known as SKIA North, as amended (to add a portion of State Route 3). City Council Special Mtg. Minutes Monday, June 16, 2008 Page 4 of 4 07:29:22 M/S/C (Arends/Robinson) Move to pass Resolution No. 3064 accepting the proposal to commence annexation proceedings for the territory known as SKIA South, as amended (to add Lake Flora Road). Voted in favor of Motion: Robinson, Arends, Wofford, Gehring, Runyon, Shepherd, Maupin Abstained: Brockus Motion carried: 7-Yes; 1-Abstention COUNCIL MEMBER REPORTS Dianne Robinson commended Community Development Director Andrea Spencer and the Planning Department for a job well done in receiving the Governor's Smart Community Award recently. She also reported on her attendance at a Neighborhood Block Watch Captains meeting with fellow Council Member Roy Runyon where a discussion was held on disaster preparedness, and noted that residents may contact Community Resource Office Andy Oakley at the Bremerton Police Department for more information on holding these meetings in their neighborhoods or to obtain disaster preparedness kids. She reported on a Health Board resolution recently adopted which included monitoring of contaminated sites and clean-up; also attended a presentation on preventing child abuse which was given by Susan Shultz who also serves with her on the Child Death Review Committee. Mike Shepherd mentioned that his neighborhood meetings will begin discussions for developing standards to monitor runoff into Dyes Inlet and hoped these standards would correct the problems. Roy Runyon reiterated the information previously reported by fellow Council Member Robinson; and noted that he planned to discuss disaster and earthquake preparedness at a future District 4 meeting. Adam Brockus announced that the Bremerton Marina Breakwater project received the 2007 Award for "Outstanding Large Project Civil Engineering Achievement" by the Seattle Chapter of the American Society of Civil Engineers; and the "Outstanding Small Project" for seismic upgrades of Bremerton Naval Hospital. These projects will now be forwarded on for consideration at the Western Regional Awards that will be announced in Lake Tahoe this September. Brad Gehrina sadly reported the passing today of his brother-in-law Bill Dawson; and noted that along with nicer weather, comes more motorcycle riders, therefore cautioned the public to be please be aware. Will Maupin reported on his attendance at the latest PSRC Growth Management Policy Board meeting held last week and will be looking forward to future presentations regarding plans for Growth Centers for Bremerton and Silverdale; and commented that while riding on the ferry, Bremerton really looks good! With no further business, President Maupin adjourned the Council Meeting at 7:40 PM. L RI SMITH Legislative Assistant Attest: CAROL ETGEN, City Clerk WILL MAUPIN, City Council President WM:CE:ls:cg DATE SUBMITTED: BILL # DB - (5 3 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5t ........................................................................................ Committee Meeting Date: NI A COUNCIL MEETING Date: ~v l6.2 200 e Department: City ounc11 Presenter: Will Maupin, Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting held ::fvY\e. .:2. ~ 2008, SUBJECT: City Council Meeting Minutes for meeting of ::::rIJne. 2, 5 j 2008 ATTACHMENTS: Meeting Minutes for :rv\o'\e.. 2..5) 2.00 8 FISCAL IMPACTS (Include Budgeted Amount): N/A APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: Council President N/A N/A N/A COMMITTEE CHAIR COUNCIL PRESIDENT: ~ ~4/c2~ CONSENT AGENDA [B" GENERAL BUSINESS 0 PUBLIC HEARING 0 RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES Wednesday, June 25, 2008 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Conference Room in Room 603 of the NORM DICKS GOVERNMENT CENTER located at 345 6th Street, Bremerton, Washington, Wednesday, June 25, 2008, at 5:00 PM, with Council President Will Maupin presiding. Council members present were Carol Arends, Dianne Robinson, Roy Runyon, Adam Brockus, Cecil McConnell, and Brad Gehring. Council Members Mike Shepherd and Nick Wofford were absent. Legislative Assistant Lori Smith was also present to provide staff support to the Council. President Maupin announced that the Study Session was for the Council to hear presentations on upcoming agenda items. It was further announced that this Study Session was open to the public, but there would be no opportunitie~ for input or participation; that no action will be taken, and the content of these items is subject to change. A. NO DISCUSSION PLANNED - The following are budgeted items or have been reviewed by the appropriate Council Committee; and will be placed on the next Council Meeting Agenda for action: 1. Application for 2008 Justice Assistance Grant for equipment funding - Chief Craig Rogers, Bremerton Police Department; and Public Safety & Parks Committee Chair Brad Gehring General Business 2. Proposed Resolution for Sole Source Purchase of Restroom Building Package for Blueberry Park from ROMTEC, INC. - Parks Director Wyn Birkenthal; and Public Safety & Parks Committee Chair Brad Gehring General Business 3. Budget Adjustment to eliminate one Engineering Technician III position, and to add one Engineering Technician IV position in the Department of Public Works - Public Works Administrative Analyst Paul Lucas; and Public Works Committee Chair Cecil McConnell Consent 4. Grant of a Temporary Easement through City Utility Lands to Puget Sound Energy (PSE) - City Engineer Michael Mecham; and Public Works Committee Chair Cecil McConnell Consent 5. Proposed Resolution setting a hearing date of August 20, 2008 to vacate a portion of the alley between Burwell Street and the existing mid-block alley bounded also by 4th Street and Washington & Pacific Avenues (adjacent to the former City Hall properties)- City Engineer Michael Mecham; and Public Works Committee Chair Cecil McConnell Consent 6. Interlocal Agreement (ILA) with Kitsap County for preparation of a new Comprehensive Solid Waste Management Plan - Public Works Director Phil Williams; and Public Works Committee Chair Cecil McConnell Consent 7. Budget Adjustment for the 2008 Professional Services Budget in the Legal Department - City Attorney, Roger Lubovich; and Public Safety & Parks Committee Chair Brad Gehring Consent City Council Study Session Minutes Wednesday, June 25,2008 Page 2 of 2 B. FULL DISCUSSION ITEMS 8. 1 O-Year Utility Services Contract with the United States Navy for Water, Wastewater, and Stormwater Services - Public Works & Utilities Director Phil Williams; and Public Works Committee Chair Cecil McConnell Consent C. GENERAL COUNCIL BUSINESS 9. Update on Action Steps and Committee Assignment of 2008-2009 Council Goals & Priorities - Council President Will Maupin President Maupin announced that the Admiral Theater Board of Directors invited the Council Members to attend a reception to meet new members of the Board immediately following the Study Session tonight. Council Members were also reminded that the next Council Meeting would be held on Wednesday, July 2, 2008. With no further business, President Maupin adjourned the Council Study Session at 6:20 PM. Prepared and Submitted by: ~ Legislative Assistant Attest: CAROL ETGEN, City Clerk WILL MAUPIN, City Council President WM:CE:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL BILL # tJ g - 154 DATE SUBMITTED: JUNE 11, 2008 5D ........................................................................................ SUBJECT: BUDGET ADJUSTMENT IN POSITION NUMBERS Committee Meeting Date: COUNCIL MEETING Date: Department: Presenter: Phone: JUNE 25, 2008 JULY 2, 2008 PUB WKS & U~ PAUL LUCAS ~. 473-2328 SUMMARY: In 2007, a position audit was done on an Engineering Technician III position which resulted in a recommendation to upgrade that position to an Engineering Technician IV. Due to an administrative oversight, this was not done for the 2008 budget. It is requested that the City Council approve a personnel budget adjustment in Engineering to eliminate one Engineering Technician III position and add one Engineering Technician IV position. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): Increase in salary of approximately $3400.00 for the remainder of 2008. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA ~ GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: That the City Council approve the elimination of one Engineering Technician III position and add one Engineering Technician IV position in the Department of Public Works & Utilities and authorize the necessary changes to the approved 2008 budget. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action I I I DATE SUBMITTED: June 18,2008 I 08-155 BILL # AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5E ........................................................................................ I I I SUBJECT: Grant of a Te~porary Easement through City Utility Lands tb Puget Sound I Energy (PSE).: I I I I ! , I SUMMARY: Triway Entefprises is pursuing a residential development in the West Hills area East of Reservoir 23. The existing ~lectrical service to Reservoir 23 and the communication towers above Reservoir 23 are currently ih an easement running through the proposed development. This requested temporary easement will be!used for electrical service until the site work for the subdivision is completed. At that time a n~w electrical service will be constructed across the subdivision using the new City streets as the alignment and these lines will be operated under the existing franchise PSE has with the City.l Committee Meeting Date: COUNCIL MEETING Date: Department: Presenter: Phone: June 25, 2008 July 2,2008 Engineering Michael Mecham 473-5288 ATTACHMENTS: 1.) Co~cil Summary; 2.) Temporary Construction Easement, and; 3.) Aerial Photograph. j FISCAL IMPACTS (InclJde Budgeted Amount): None. All construction costs for the temporary relocation and the permanent power infrastructure will be the responsibility of the developer and PSE. I I I APPROVALS: i I DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: ~~:C:T::E~~~~~T: I ~~~ I I I RECOMMENDED MOTION: Move to approve the Temporary Easement to Puget Sound Energy and authorize the Mayor to finalize and execute the necessary documents with substantially the same terms and conditions as preJented. I I I , CONSENT AGENDA GENERAL BUSINESS 0 PUBLIC HEARING 0 I COUNCIL ACTION: 0 1<pprove 0 Deny D Table o Continue 0 No Action Council Summary Granting of a Temporary Easement to PSE Triway Enterprises is pursuing residential development in the West Hills area east of Reservoir 23 and south of Pendergast Park. A residential subdivision for over 600 lots has received preliminary plat approval. Triway is pursuing additional approval for several hundred more lots to be designated as an active adult community. The electrical service to and communication towers above Reservoir 23 located in the watershed are in an easement through these proposed developments. To facilitate the construction of the subdivision it is necessary to realign the electrical service and easement. A temporary easement from a transformer locate in Ace Paving's property east of Reservoir 23 to a location just east of Reservoir 23 is proposed and will be used until the subdivision is , completed. A permanent electrical service will be constructed across the subdivisions using the new streets as its alignment. RIGHT OF ENTRY, LICENSE AND TEMPORARY CONSTRUCTION EASEMENT This Right of Entry and Temporary Construction Easement between Puget Sound Energy, Inc., a Washington Corporation (PSE), hereinafter called "Grantee", and The City of Bremerton, a Washington Municipal Corporation, hereinafter called "Grantor', is made this day of ,2008. RECITALS A. Description of Property. Grantor warrants that it is the owner of the real property ("The Property") legally described as: NW1/4 & SW1/4 & NE1/4 LESS SE1/4 NE1/4 LESS TAX LOT 39 & W1/2 NW1/4 SE1/4 LESS TAX LOT 31; EXCEPT THE FOLLOWING PER AUDITOR FILE NO 9205140195: THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER, SECTION 29, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON; EXCEPT THE SOUTH ONE-EIGHTH OF THE EAST HALF OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 29. IN CONSIDERATION of the premises and the mutual covenants and agreements herein set forth, it is agreed by and between the parties as follows: 1. Riqht of Entry. License. and Construction Easement. Grantor grants a Right of Entry, License and Temporary Construction Easement to PSE, its agents, employees and contractors, to enter the above described real property and to enter and use the Temporary Construction Easement for the accommodation of Construction equipment and the installation of facilities, materials and appurtenances necessary for completion of PSE's underground electric primary line. The easement area is generally depicted on the drawing attached as Exhibit "A" and further described as follows: The temporary construction easement is ten (10) feet wide with the the centerline of said ten feet being the centerline of Grantee's facilities as now constructed, to be constructed, extended or relocated within the northwest quarter of the northeast quarter of the above described real property. 2. Restoration. Upon completion of its construction project, PSE or its agent shall return the Temporary Construction Easement area and all portions of the property affected by use of the easement to a condition reasonably comparable to the condition in which it existed prior to PSE's use of this easement. The intent of this provision is to ensure that if PSE's use of this easement indirectly causes damage to other portions of the Property apart from the Temporary Construction Easement area, PSE shall correct such damage even though it is outside the easement area. 3. Hold Harmless. PSE agrees to fully indemnify and hold Grantor, their successors, heirs and assigns harmless from any and all claims or damages arising from or out of, and to the extend of, the negligent acts or omission of PSE employees, agents, or,contractors in connection with the performance of this Agreement. 4. Term. This Agreement shall be effective from the date PSE notifies its contractor to proceed with construction, and shall terminate upon completion of West Hills Residential development project. Completion shall mean the point in time at which Grantee is instructed by West Hills to cut, abandon, remove or cease to use those underground electric facilities installed under this temporary easement, and said facilities are actually cut, abandoned, removed or disused. If due to circumstances beyond PSE's control which do not allow for the construction to be completed as described, PSE will present to the Grantor, in writing, a revised schedule for their approval, which shall not be unreasonably withheld. 5. Successors and Assiqns. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors and assigns. GRANTOR: The City of Bremerton GRANTEE: Puget Sound Energy, Inc. BY; BY: ITS: ITS: PSE Job Number: 101049133 STATE OF WASHINGTON ) )SS COUNTY OF ) On this day of , 2008, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the person who signed as (TITLE) of The City of Bremerton, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be his/her free and voluntary act and deed and the free and voluntary act and deed of The City of Bremerton for the uses and purposes therein mentioned; and on oath stated that _ was authorized to execute the said instrument on behalf of said The City of Bremerton. IN WITNESS WHEREOF I have hereunto set my hand and official seal the day and year first above written. GIVEN UNDER my hand and official seal hereto affixed the day and year in this certificate first above written. (Signature of Notary) (Print or stamp name of Notary) NOTARY PUBLIC in and for the State of Washington, residing at My Appointment Expires: STATE OF ) )SS ) COUNTY OF On this day of , 2008, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Steven R. Botts, to me known to be the person who signed as Supervisor Real Estate of Puget Sound Energy, Inc., the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be his/her free and voluntary act and deed and the free and voluntary act and deed of Puget Sound Energy, Inc. for the uses and purposes therein mentioned; and on oath stated that he was authorized to execute the said instrument on behalf of said Puget Sound Energy, Inc.. IN WITNESS WHEREOF I have hereunto set my hand and official seal the day and year first above written. (Signature of Notary) (Print or stamp name of Notary) NOTARY PUBLIC in and for the State of Washington, residing at My Appointment Expires: PSE Job Number: 101049133 Proposed Temporary Underground Power Easement Legend Map Document: (1:\GfS-data\WATERSHED POWER EASEMENT.mxd) 6113/2008 -- 10:07:57 AM DATE SUBMITTED: June 18, 2008 BILL # 08 - IS~ AGENDA BILL CITY OF BREMERTON CITY COUNCIL SF ........................................................................................ SUBJECT: Resolution # 30(JQ Vacation of a Portion of the Alley between Burwell Street and the existing mid-block alley bounded also by Fourth Street and Washington and Pacific A venues. Committee Meeting Date: June 25, 2008 COUNCIL MEETING Date: July 2, 2008 Department: Engineering Presenter: Michael Mecham Phone: 473-5288 SUMMARY: As part of the redevelopment of the former City Hall properties, Economic Development has initiated the vacation of a portion of the alley to allow the current owner of the property, Hotel Concepts, Inc., better use of the site. This date has been scheduled for a public hearing in accordance with state law and the Bremerton Municipal Code for first reading on the proposed ordinance vacating the subject property. In accordance with BMC 11.20.080(d), no compensation 'is required. ATTACHMENTS: 1.) Resolution # 'bo~fQ; 2.) Exhibit Drawing; 3.) Engineering Staff Report. FISCAL IMPACTS (Include Budgeted Amount): None. APPROV ALS: DEPARTMENT DIRECTO CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA ~ GENERAL BUSINESS 0 PUBLIC HEARING 0 RECOMMENDED MOTION: Move to pass Resolution # 3oCo~ setting a hearing date of August 20, 2008 for vacating a portion of alley between Burwell Street and the existing mid-block alley, adjacerit to the former City Hall properties. COUNCIL ACTION: 0 Approve D Deny D Table 6-16-08 Agenda Bill for Resolution Alley vacation o Continue D No Action RESOLUTION NO. 3r::fofo A RESOLUTION of the City Council of the City of Bremerton, Washington, establishing a hearing date for the proposed vacation of a portion of the alley between Burwell Street and the existing mid-block alley, bounded also by Fourth Street and Washington and Pacific A venues in downtown Bremerton. WHEREAS, the City initiated the vacation in accordance with Bremerton Municipal Code (BMC) 11.20.080 as part of the redevelopment of the former City Hall properties; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A public hearing will be held on August 20,2008, at 5:30 p.m. or later in the City Council Chambers at the Norm Dicks Government Center, First Floor, 345 Sixth Street, Bremerton, Washington, to take public comment or consider written objections to the vacation. SECTION 2. Severability. If anyone or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect' the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 3. Effective Date. This Resolutiori shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this ,2008. day of WILL MAUPIN, Council President APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney CAROL ETGEN, City Clerk 1 Portion of Alley between Burwell Street and existing mid-block alley - Resolution z z z 0 I- 0 a:: a:::j:: l.J...<;;t ~ W 0<( ON ::2: l.J...u 0:) Z . w 0 . . 1-<( I- ~ a::: '- . o . 01"': . 00> i=1'0~CD NC:> '- I>- 0::: -l.J... N XW o . .0 W...J CLUD::: ...J W >- <t: (f) ~ U City of Bremerton, Department of Public Works and Utilities Engineering Division Staff Report Proposed Partial Alley Vacation at Former City Hall Property City Council/Public Hearing Date: Report Prepared By: August 20,2008 Gunnar Fridriksson, Civil Engineer II SUMMARY A. Applicant: City of Bremerton 345 6th Street, Suite 600 Bremerton, WA 98337 Location: The easterly 5 feet of the alley dedicated in conjunction with Ordinance 5013 and recorded with Kitsap County Auditor's File No. 200707270110. B. Attachment: Exhibit Map BACKGROUND The City of Bremerton originally vacated portions of the alleys adjacent to the former City Hall to facilitate the redevelopment of the former City Hall properties. As part of the requirements for these alleys being vacated, the City requested conveyance of a new north-south alley connecting Burwell Street and the existing 14-foot alley. This new alley was the westerly 20 feet of Lot 14 of the properties. The developer of the former City Hall properties has requested that the new alley be reduced to 15-foot. RIGHT-OF-WAY CONDITIONS . Functional Classification . Existing Right-of-Way Width . Proposed Right-of-Way Width . Pavement Width . Surface Type . Curb and Gutter . Sidewalks Alley 20 feet 1 5 feet 20 feet Asphalt N/A N/A June 10, 2008 Engineering Division Staff Report Proposed Alley Vacation at former City Hall Page 1 of 3 HEARING CONSIDERATIONS BMC 11.20.120 sets forth issues that the City Council shall determine following the Vacation Hearing. These issues and City staff positions are as follows: 1. Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: This portion of the right-of-way will not be required for public use. 2. Whether the vacation is consistent with the City Comprehensive Plan. Staff Position: The proposed vacation does not conflict with the Comprehensive Plan. 3. Whether continued use of the proposed vacation as a public way is not of such public benefit as to justify the costs of maintenance. Staff Position: Maintenance costs will be comparable to the cost to maintain the existing alley. 4. Whether substitution of a new and different thoroughfare would be more useful to the public. Staff Position: N/A - Roadway is remaining, reduced width. 5. Whether conditions may so change in the future as to provide a greater public use or need than presently exists. Staff Position: The relocated roadway will be consistent with future redevelopment of the site and is expected to meet future public needs. 6. Whether objections to the proposed vacation are made by owners of private property abutting the same. Staff Position: The former City property is the only property abutting the vacation. SHORELINE ACCESS This portion of right-of-way does not provide shoreline access. June 10, 2008 Engineering Division Staff Report Proposed Alley Vacation at former City Hall Page 2 of 3 UTILITIES The Department of Economic Development has contacted and been negotiating with the private utility companies to abandon or relocate their existing infrastructure. No easements will be required for the private or City utilities. SUFFICIENCY OF SIGNATURES Not Applicable - The City initiated the vacation. COMPENSATION Not Applicable - The City initiated the vacation. STAFF COMMENTS The City Fire Department, Attorney, Department of Community Development, Police Department, and Engineering all support this vacation. Staff recommends approval of the vacation of these portions of the alley. ,:' ~'Iiiii.." ~iiiJ;; !i?" ..,... " rJi ~;;~!1 _" :.''',' f~ ... ,~j)f:f [:ir~ ~ ~: ~~~ ~~ ~Jl r,----;~ ~I~flj \k.~ ~ \ ~ f~~ II r- :lr Looking northerly from Burwell along new alley. June 10, 2008 Engineering Division Staff Report Proposed Alley Vacation at former City Hall Page 3 of 3 DATE SUBMITTED: June 19,2008 BILL # 0 8 - 15 7 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 66- ...............................................................~........................I SUBJECT: Interlocal Agreement with Kitsap County for preparation of a new Comprehensive Solid Waste Management Plan Committee Meeting Date: June 25, 2008 COUNCIL MEETING Date: July 2, 2008 Department: PW&U Presenter: Phil Williams Phone: 473-5315 SUMMARY: State of Washington RCW 70.95 requires each local govemmentjurisdiction to have an approved Comprehensive Solid Waste Management Plan (CSWMP) in place. Kitsap County operates and maintains the solid waste transfer station and disposal system for all local government agencies and has taken the lead on comprehensive planning for solid waste for many years. This ILA creates a partnership between Kitsap County and the incorporated cities (Bremerton, Port Orchard, Poulsbo/Suquamish, Port Gamble S'Klallam Tribes) to develop a new 6-year comprehensive solid waste plan. Once developed the plan will be submitted to each of the cities for adoption. ATTACHMENTS: ILA with Kitsap County for the new Comprehensive Solid Waste Management Plan FISCAL IMPACTS (Include Budgeted Amount): None. The cost to develop a new CSWMP is paid for by the County out of tipping fees. APPROVALS: DEPARTMENT DIRECTO CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: COMMITTEE CHAIR COUNCIL PRESIDENT: ~~ CONSENT AGENDA ~ GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to approve the ILA for the Comprehensive Solid Waste Management Plan and authorize the Mayor to finalize and execute the same. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action INTERLOCAL AGREEMENT KC- -08 BETWEEN KIT SAP COUNTY AND CITIES OF BAINBRIDGE ISLAND, BREMERTON, PORT ORCHARD, POULSBO / SUQUAMISH, PORT GAMBLE S'KLALLAM, TRIBES DESIGNATING KITSAP COUNTY AS THE LEAD AGENCY FOR THE REVISION OF THE COMPREHENSIVE SOLID WASTE MANAGEMENT PLAN WHEREAS, RCW 70.95.020 assigns primary responsibility for solid waste planning to local government; and WHEREAS, RCW 70.105.007(3) assigns responsibility for moderate risk waste planning to local government; and WHEREAS, RCW 70.95.010 states that solutions to the state's solid waste management problems require regional solutions by local governments as well as intergovernmental cooperation; and WHEREAS, RCW 70.95.090 requires the comprehensive solid waste management plan to include the estimated long-range planning needs for solid waste handling facilities projected twenty (20) years into the future; and WHEREAS, RCW 70.95.110 requires all solid waste management plans be maintained in a current condition to be reviewed and revised periodically; and . WHEREAS, RCW 70.95.080 requires counties, in cooperation with the various cities located within such county, to prepare a coordinated, comprehensive solid waste management plan; and WHEREAS, RCW 70.95.080 also requires each city to (1) prepare and deliver to the county, an independent solid waste management for integration into the county plan; or (2) enter into an agreement with the county to participate in the preparation of a joint city-county plan for solid waste management; or (3) authorize the county to prepare a plan for the city's solid waste management for inclusion in the comprehensive county solid waste management plan; and WHEREAS, RCW 70.105.220 requires each local government to prepare a local hazardous waste management plan which may be amended as the needs arises; and WHEREAS, local governments may choose to either include a moderate risk waste element of their solid waste plans, or develop moderate risk waste plans separately from their solid waste plans, recognizing that if the local government chooses not to combine the two plans, both plans should be coordinated; and WHEREAS, Kitsap County has established a Solid Waste Advisory Committee (SW AC) in accordance with RCW 70.95.165 to assist in the development and review of programs and policies concerning solid waste handling and disposal, consisting of representatives of each of (LA w/KC for new CSWMP Page I of I () the incorporated cItIes, Indian tribes, federal facilities, County Commissioner's districts, business, and the solid waste industry; and WHEREAS, the 1999 Kitsap County Comprehensive Solid Waste Management Plan, as adopted by the Kitsap County, the incorporated cities and Indian tribes within the county and approved by the Washington State Department of Ecology, incorporates both solid waste and moderate risk waste plans; and WHEREAS, for solid waste and moderate risk waste planning purposes, Kitsap County attributes to a federally-recognized Indian tribe the same status as a city, as referred to in Chapter 70.95 RCW and Chapter 70.105 RCW; and WHEREAS, it is necessary for grant application purposes to designate the lead solid waste planning agency and for local governments participating in the solid waste management planning process to agree to the planning process; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed: I. PURPOSE OF AGREEMENT It is the purpose of this agreement to provide for the updating of the Kitsap County Comprehensive Solid Waste Management Plan as mandated in Chapters 70.95 and 70.105 RCW, for collection, recycling and disposal of solid and moderate risk waste produced or generated within the boundaries of Kitsap County, pursuant to the Department of Ecology Planning Guidelines. II. AUTHORITY AND RESPONSIBILITIES A. Kitsap County shall act as lead agency for review of the 1999 Kitsap County Comprehensive Solid Waste Management Plan, and for preparation of the 2009 revised Comprehensive Solid Waste Management Plan (CSWMP), incorporating both solid waste and moderate risk waste elements. B. It is understood that the planning effort will be coordinated through the Solid Waste Advisory Committee (SW AC), and that the Department of Ecology will consider approval of the revised CSWMP only after all local jurisdictions participating in the planning process have adopted the revised CSWMP by resolution. C. Responsibilities for implementation of solid waste programs (including moderate risk waste) will be delineated in the adopted CSWMP. D. No separate entity is being created by this Agreement. III. FfNANCING AND BUDGET The County shall maintain a Solid Waste Management Fund as a special fund within the County budget. All revenues and expenses in connection with the Solid Waste Management Program subject to this Agreement shall be budgeted and accounted for through this fund. Receipts ILA w/KC for new CSWMP Page 2 of 10 deposited in the Solid Waste Management Fund shall be used only for solid waste management purposes unless otherwise required by law, grant, regulation or separate contract. Funding for the CSWMP update process will be provided solely through the Kitsap County Solid Waste Management Fund. Funding for plan implementation will be as stated within the Plan. IV. PROPERTY RIGHTS Title to all property acquired with funds from the Solid Waste Management Fund shall vest in Kitsap County. In the event of sale of any surplus property, such funds shall be deposited in the Solid Waste Management Fund unless otherwise required by law, grant, regulation or contract. However, if the Solid Waste Management Fund does not require the revenue generated by the sale of such property, it shall be disbursed to participating jurisdictions by an agreed upon formula to be worked out at time of sale. V. DISPUTE RESOLUTION Any disputes arising under the terms of this agreement shall be resolved through negotiation and consensus; provided that should negotiation and consensus fail to resolve the issue, it shall be submitted to a mediation panel consisting of the SW AC membership for resolution. Final authority to resolve disputes shall rest with the Board of County Commissioners subject to court review by writ of certiorari for arbitrary and capricious action; provided that the writ is filed within thirty (30) days ofthe BOCC decision. VI. ADMISSION OF NEW PARTIES Additional municipal entities may be added to this Agreement upon such terms and conditions as the participating governments and the new party agrees upon in writing. VII. PLAN ADOPTION The Kitsap County Comprehensive Solid Waste Management Plan and any subsequent plan updates shall be deemed to have been adopted when the planes) have been approved by governing bodies (county commission, city/town councils) representing 75% of the population (as set forth by the Washington State Office of Financial Management) of Kitsap County. VIII. AMENDMENTS This document may be amended at any time following the recommendation of the Solid Waste Advisory Committee and approval by governing bodies (county commission, city/town councils) representing 75% of the population (as set forth by the Washington State office of Financial Management) of Kitsap County. The process for adopting an amendment to this agreement shall be the same as that followed for its original adoption. (LA w/KC for new CSWMP Page 3 of \0 IX. TERM Commencing on the date this Agreement is last executed, it shall continue for a term of ten (10) years. Any party hereto may withdraw and terminate its rights and obligations under this Agreement if it is their intention to establish their own Plan, satisfying all requirements to do so under the applicable laws of the State of Washington. In such cases, twelve (12) months' notice of intent to withdraw shall be given to all parties hereto. X. EFFECTIVE DATE This Agreement shall be effective upon its execution by the Kitsap County Board of Commissioners after execution by all other participating governments. XI. FILING This At,'Teement shall be filed with the Kitsap County Auditor as required by RCW 39.34.040. This Agreement shall be effective upon execution by the parties. Dated this day of 2008. BOARD OF COMMISSIONERS KITSAP COUNTY, WASHINGTON STEVE BAUER, Chair JOSH BROWN, Commissioner JAN ANGEL, Commissioner ATTEST: Opal Robertson, Clerk of the Board [LA w/KC for new CSWMP Page 4 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. CITY OF BAINBRIDGE ISLAND Darlene Kordonowy, Mayor ATTEST: Rosalind Lassoff, City Clerk APPROVED AS TO FORM: Paul McMurray, City Attorney lLA w/KC for new CSWMP Page 5 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. CITY OF BREMERTON Cary Bozeman, Mayor ATTEST: Carol Etgen, City Clerk APPROVED AS TO FORM: Roger Lubovich, City Attorney ILA w/KC for new CSWMP Page 6 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. CITY OF PORT ORCHARD Larry Coppola, Mayor ATTEST: Michelle Merlino, City Clerk APPROVED AS TO FORM: City Attorney [LA w/KC for new CSWMP Page 7 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. CITY OF POULSBO Kathryn H. Quade, Mayor ATTEST: Karol Jones, City Clerk APPROVED AS TO FORM: James E. Haney, City Attorney [LA w/KC for new CSWMP Page 8 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. PORT GAMBLE S'KLALLAM TRIBE Tribal Council/Tribal Manager ATTEST: APPROVED AS TO FORM: Attorney ILA w/KC for new CSWMP Page 9 of 10 INTERLOCAL AGREEMENT KC- -08 Dated this day of 2008. SUQUAMISH TRIBE Tribal Council! Tribal Manager ATTEST: APPROVED AS TO FORM: Attorney ILA w/KC for new CSWMP Page 10 of 10 DATE SUBMITTED: June 18th 2008 BILL # Og- /58 AGENDA BILL CITY OF BREMER TON CITY COUNCIL 5H ........................................................................................ SUBJECT: New Utility Services Contract for PSNS/NBK-Bremerton for water, wastewater, and stormwater services. Committee Meeting Date: June 25th COUNCIL MEETING Date: July 2nd Department: Public Works & Utilities Presenter: Phil Williams Phone: 473-5755 SUMMARY: The City has worked with the Navy to develop a successor contract to the ten-year Utilities Contract for PSNS and NBK-Bremerton that expired on 12-01-2007. Since that time service has been provided under a "Unilateral Contract" which extends to November, 2008. This proposed new ten-year contract would extend from August 1,2008 to July 31 S\ 2018. For Water service the initial rates are a flat fee of $39,000 per month and a variable rate of $125/HCF. For wastewater the flat fee is $81,400/mo. and $3.08/HCF (based on metered wastewater service). The Navy has also agreed to begin paying for stormwater service for all Navy properties that use or benefit from city-owned stormwater infrastructure. ATTACHMENTS: Contract # N44255-08-C-3005 FISCAL IMPACTS: Based on the assumed consumption rates listed in the contract the total revenue for Water Utility is estimated at $1,559,500/yr. Wastewater revenue is similarly estimated at $1,953, 160/yr. Stormwater revenue is estimated at $26,000/yr. All rates are subject to annual escalation during the life of the contract. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: CONSENT AGENDA GENERAL BUSINESS PUBLIC HEARING D COMMITTEE CHAIR COUNCIL PRESIDENT: RECOMMENDED MOTION: Move to approve the proposed contract #44255-08-C-3005 with the United States Navy and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action . PSNS/Naval Station Bremerton Utilities Contract Summary - June 24th, 2008 Water - $37,513 + $0.96/hcf vs. $39,000 + $1.25/hcf Sewer - $115,654 + $1.90/hcf vs. $81,400 + $3.08/hcf @ 873,200 hcf /yr Water 8: 317,304 hcf /yr Wastewater Before COSA New Contract Water 37,513 x 12 = 450,144 0.96 x 873,200 = 838,272 SubTotal = 1,288,416 39,000 x 12 = 468,000 873,200 x 1.25 = 1,091,500 SubTotal = 1,559,500 . Wastewater 115,654 x 12 = 1,387,848 317,304 x 1.90 = 602,878 SubTotal = 1,990,726 81,400 x 12 = 976,800 317,304 x 3.08 = 977,296 SubTotal = 1,954,096 Total = $3,279,142 Total = $3,513,596 . II. THIS CONlRACTlS A RATED ORDER I RA flNG I PAGE OF PAGES SOLICITATION, OFFER AND AWARD UNDER DP AS (15 CFR 700) 1 I 24 2. CONTRACT NO. 3. SOLICITATION NO. 4. WPE OF SOLICITATION 5. DATE ISSUED 6. REQUISrnON/PURCHASE NO. [ ] SEALED BID (IFB) N44255-08-C-:r05 [ ] NEGOTIATED (RFP) 7. ISSUED BY CODE 1 N44255 8. ADDRESS OFFER 10 (I rather than Item 7) CODE I NA\ifAC NORTHV\EST 1101 TAUTOGCIRCLE, SUITE 203 SILIiERDAlE WA 00315-1101 See Item 7 TEL: TEL: FAX FAX NOTE: In sealed bid sohcitat1Clns "offer" and Itofferor"mean "bid" and Hbiddel ". SOliCITATION 9. 5:aled offers in original and_ copies for furnishing the supplies or services in the &hedule will be received at the place specified in Item 8, or if handcarried, in the depository located in lIDtil local time (Hour) (Date) CAUTION - LATE &Jbmissions, Modifications, and WithdraV\als: 5:e 5:ction L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation. 10. FOR INFORMATION IA. NAME B. "lELEP HONE (Include area code) (NOCOlJECTCALLS) I C. E-MI\IL ADDRESS CALL: II. TABLE OF CONTENTS (X)I SEe. I DE9:RIPTION P AGE(S) I (X) SEe. DE9:RIPTION P AGE(S) PARTI-THESCHEDULE PARTII- CO NlRACT CLAUSES X A 9JLlCIT AT ION/ CONTRACT FORM 1 X I CONTRACT CLAUSES 115 - 23 X B SUPPLIES OR SERVICES AND PRICES' COSTS 2-5 PARTIII- LISTOFDOCUMENTS EXHIBITS AND OTHER AlTACHMENTS X C DE9:RIPTION/ SPECS./ WORK STATEMENT 6-8 X J LIST OF ATT ACHMENTS 124 X D PACKAGING AND MARKING 9 PART IV - REPRESENTATIONS AND INSTRUCTIONS E INSPECTION AND ACCEPT ANCE K REPRESENTATIONS, CERTIFICATIONS AND X F DELIVERIES OR PERFORMANCE 10 OTHER ST ATEMENTSOF OFFERORS X G CONTRACT ADMINISTRATION DAT A 11-13 L INSTRs. CONDS. ANDNOTICESTOOFFERORS X H SPECIAL CONTRACT REOUIREMENTS 14 M EVALUATION FACTORS FOR AWARD OFFER (Must be fullv comdetedby offeror) NOTE: Item 12 does not apply if the solicitation includes the orovisions at 52.214-16, Minimwn Bid Acceotance Period 12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days lIDless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon \\hich prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule. 13. Dl9:0UNT FOR PROMPT PAYMENT (5:e 5:ction I, Gause No. 52.232-8) 14. ACKNOWLEDGMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE (The offeror acknowedges receipt of amendments to the 9JLICIT A TlON for offerors and related docwnents nwnbered and dated): 15A. NAME CODE I 04DN7 I FACILITY! 04DN7 16, NAME AND TITLE OF PER9JN AUTHORIZED TO AND CITY OF BREMERTON . SIGN OFFER (Type or print) ADDRESS 31270LYMPUSDR OF BREMERTON WA 00310-479:l OFFEROR 158. TELEPHONE NO (Include area code) I 15C. CHECK IF REMITTANCE ADDRESS 17. SIGNATURE 18. OFFER DATE o IS DIFFERENT FROM ABOVE - ENTER 360-478-5315 SUCH ADDRESS IN SCHEDULE. AWARD (1'0 be conn: eted bv Go~rnment) 19. ACCEPTED AS'm ITEMS NUMBERED 120. AMOUNT 21. ACCOUNTING AND APPROPRIATION $0.00 22. AUTHORIW FOR USING OTHER THAN FULL AND OPEN COMPFn-nON: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN liTEM 0 10 U.S.e. 2304(c)( ) 0 41 U.S.e.253(c)( ) (4 copies unless otherwise specified) 24. ADMINISTERED BY (lrolher than Item7) CODE I 25. PA YMENTWILL BE MADE BY CODE I See Item 7 26. NI~ OF CONTRACTING OFFICER (Type or print) 27. UNI1ED STATES OF AMERICA 28. AWARD DATE TEL: F.M"--TL : (Signature orContracting Officer) IMPORT ANT - AV\ard will be made on this Form or on Standard Form 26 or hv other authorized official V>ritten notice. Pre\ ious Edition IS Unusable 33-134 STANDARD FOR1\133 (REV. 9-97) Prescribed by GSA FAR (48 CFR) 53.21-1(c) Section B - Supplies or Services and Prices ITEM NO SUPPLIES/SERVICES 0001 QUANTITY 10 UNIT Years UNIT PRICE POTABLE WATER - BNC FFP Provide potable water to Bremerton Naval Complex (BNC), Bremerton, Washington. Water flow volume shall be measured through City of Bremerton meter located at 1st and Pacific; City of Bremerton meter located at Charleston Gate; and City of Bremerton meter located at 1st and Rainier Avenue. City of Bremerton utility accounts 1300030, 1300040, and 1300050 apply to this CLIN. CLIN 000 I rate design is based on mutually negotiated cost of service study. CLIN 0001 estimated component rates for 2008 are found at contract provision B.I, Rate Structure. FOB: Destination NET AMT ITEM NO SUPPLIES/SERVICES 0002 QUANTITY 10 UNIT Years UNIT PRICE SEWAGE SERVICE - BNC FFP Provide sewage disposal and treatment for Bremerton Naval Complex (BNC), Bremerton, Washington. Sewage flow volume will be measured through City of Bremerton meter located at 143 1st Street; and City of Bremerton meter located at 416 S. Cambrian Avenue. City of Bremerton utility accounts 1300090, 1300100, and 1300120 apply to this CLIN. Deductions from account 1300090 to address City water flow into Navy sewage system shall be applied as described in contract provision B.2. Addition of Navy sewage flow from Montgomery Guard Shack into City sewer system shall be applied to account 1300010 as described in contract provision B.3. CLIN 0002 rate design is based on mutually negotiated cost of service study. CLIN 0002 component rates for 2008 are found at contract provision B.l, Rate Structure. FOB: Destination NET AMT N44255-08-C-3005 Page 2 of 24 AMOUNT $0.00 AMOUNT $0.00 N44255-08-C-3005 Page 3 of 24 ITEM NO 0003 SUPPLIES/SERVICES UNIT Years UNIT PRICE AMOUNT QUANTITY 10 WATER AND SEWER, BLDG 981 BNC FFP Provide potable water and sewage service for Building 981, Pass and ID, Bremerton Naval Complex (BNC), Bremerton, Washington. Water flow volume is measured through City of Bremerton water meter. City of Bremerton utility account 4655650 applies to this CLIN. Price for metered water shall be based on City of Bremerton within city 2" meters size as found in City of Bremerton Municipal Code 15.06, Appendix A, Retail Water Service Rates. Price for sewage is based on City of Bremerton Commercial 1 within city rates as found in City of Bremerton Municipal Code 15.06, Appendix A, Retail Wastewater Service Rates. Sewer flow is equivalent to water flow for the CLIN. FOB: Destination NET AMT $0.00 CLIN DESCRIPTION B. 1 RATE STRUCTURE. The base period water and sewer rates shall be in accordance with the mutually negotiated structures and formulas as found in Attachment 1.1, Summary of Final Negotiations and Rate Analysis for the City of Bremerton and U.S. Navy Wholesale Water and Sewer Rates, March 2008. As found in Attachment 1.1, the rate design used to establish the base period rate for CLIN 0001 assumed a 30% fixed component and a 70% variable component. The rate design used to establish the base period rate for CLIN 0002 assumed a 50% fixed component and a 50% variable component. The actual ratio of fixed to variable revenues is a function of the Navy's volumetric use, which may vary over time during the contract term. Water and sewer rates established for the base period of subj ect contract beginning 01 August 2008 are: CLIN 0001: Price for metered water shall be a fixed monthly charge of $39,000 and a volumetric charge of$1.25/hundred cubic feet (hcf). The volumetric charge is applied to total of all billable units upon approval of the invoices. Any Future adjustment of CLIN 0001 rates shall be in accordance with provision B.3, Future Adjustment of Rates. CLIN 0002: Price for metered sewage shall be a fixed monthly charge of $81 ,400 and a volumetric charge of$3.08/hundred cubic feet (hcf). The volumetric charge is applied to total of all billable units upon approval of the invoices. Any future adjustment ofCLIN 0002 rates shall be in accordance with contract provision B.3, Future Adjustment of Rates. CLIN 0003: Price for metered water and sewer service shall be in accordance with the City of Bremerton (City) Commercial 1 within-city water rate for 2" meter and Commercial I within-city wastewater rate based on measured flow through 2" meter in accordance with Attachment 1.3., Appendix A to City of Bremerton Municipal Code 15.06, Assessments, Rates, Fees and Charges. N44255-08-C-3005 Page 4 of 24 Future adjustment of CLlN 0003 rates shall be based on new ordnance rates as approved by City for Commercial 1 water and wastewater within-city rates. B.2 CLIN 0002. CITY ACCOUNT #1300090. DEDUCTIONS FOR CITY WATER FLOW INTO NAVY SEWAGE SYSTEM PRIOR TO EXIT OF NAVY WASTEWATER DISCHARGE THROUGH CITY METER LOCATED AT 1431sT STREET (EAST END OF BNC). The parties mutually agree to the following deductions: (1) The City has installed a water meter that measures full flow from the Naval Museum and Fountain Room. This measured flow will be deducted from CLIN 0002 on each monthly invoice for City Account #1300090. (2) The City will install a water meter to measure flow from the Harborside public restrooms. This measured flow will be deducted from CLlN 0002 on each monthly invoice for City Account #1300090. (3) The City shall deduct an estimated water discharge from the Harborside Fountain Park pump room overflow. The parties mutually agree that a monthly average of 18 hundred cubic feet (hct) shall be deducted from CLIN 0002 on each monthly invoice for City Account #1300090. B.3 CLIN 0002. ACCOUNT #1300100. ADDITION OF ESTIMATED SEWAGE FLOW FROM THE NAVY'S MONTGOMERY AVENUE GUARD SHACK INTO CITY'S WASTEWATER STREAM (WEST END OF BNC). The parties mutually agree that sewage flow produced from the Montgomery Avenue Guard Shack has not been previously measured or properly invoiced. The parties agree to add an estimated 3 hundred cubic feet (hct) on each monthly invoice for City Account #13000100. B.3 FUTURE RATE ADJUSTMENTS. CLIN 0001 and CLlN 0002: Any adjustment ofCLlN 0001 and 0002 rates beyond calendar year 2008 shall be accomplished in accordance with the mutually negotiated rationale and formulas as found in attachment J.2, contract N44255-08-C-3005, Methodology For Adjustment of Water and Wastewater Rates. The parties agree that the baseline usage provided at the beginning of the contract by the City of Bremerton shall not change during the entire contract term. Only rates and revenues as developed and incorporated into Attachment J.2 may change for purposes of future adjustments. The baseline usages for water and wastewater, respectively, are found in Attachment J.2 under the water and wastewater spreadsheets titled "Base Year Calculations ". The City shall provide any revised rates and revenues for Navy review in accordance with Attachment J.2 no less than 30 days prior to the effective date of any such adjustments. It is anticipated that future rate adjustments will normally become effective 01 January. CLlN 0003: Adjustment of CLlN 0003 rates beyond calendar year 2008 shall be in accordance with amended City of Bremerton Commercial 1 rates as may be codified through revisions to Appendix A to City of Bremerton Municipal Code 15.06, Assessments, Rates, Fees and Charges. It is anticipated that future rate adjustments will normally become effective 01 January. All adjustments to CLlNs 0001, 0002, and 0003, are subject to the provisions of FAR Clause 52.241-8, "Change in Rates or Terms and Conditions of Service for Unregulated Services. B.4 CONTRACT EFFECTIVE DATE. The base year rate effective date is 01 Aug 2008 and shall continue until 31 July 2018, unless otherwise mutually agreed to by the parties through contract modification. REST OF PAGE LEFT INTENTIONALLY BLANK N44255-08-C-3005 Page 5 of 24 N44255-08-C-3005 Page 6 of 24 Section C - Descriptions and Specifications STATEMENT OF WORK c.t GENERAL REQUIREMENTS. The City of Bremerton (City) shall provide all labor, supervision, tools, equipment, and transportation necessary to deliver the services required under this contract. C.2 PREMISES TO BE SERVED. The premises to be served are collectively known as the Bremerton Naval Complex (BNe). For purposes of this contract, the BNC facilities to be served consist of: Naval Base Kitsap (NBK) Bremerton 120 South Dewey Street Bremerton, W A 98314-5020 Puget Sound Navy Shipyard (PSNS)/ Intermediate Maintenance Facility (IMF) 1400 Farragut Avenue Bremerton, WA 98314-5001 The facilities to be provided water and sewer service under CLIN 0001, 0002, and 0003 are detailed in two Department of Navy, Facilities Engineering Command NW drawings (as may be further revised): Naval Base Kitsap, Bremerton, W A, "Sanitary Sewer, CHT & Pressure Sewer Systems, Bremerton Naval Complex, PWD Drawing No. 57849, revised May 2,2006, and Naval Base Kitsap, Bremerton, W A, "Utility Map, Freshwater Distribution System, Bremerton Naval Complex, PWD Drawing No. 53935, revised March 31,2005. Subject to appropriate security reviews and approvals, copies of these drawings will be provided by the Navy to the City of Bremerton upon request. C.3 ESTIMATED SERVICE. Estimated annual water consumption: CLIN 0001 - 873,280 hundred cubic feet (hct) CLIN 0003 - 50 hundred cubic feet (hct) Estimated annual sewage capacity requirements: CLIN 0002 - 317,304 hundred cubic feet (hct) CA POINT OF CONNECTION/LOCATION. Water service: Water shall be delivered at the following meter locations: 1. First Street and Pacific Avenue 2. Charleston Gate 3. First Street and Rainier Avenue 4. State Highway 304, Pass and ID Building #981 N44255-08-C-3005 Page 7 of 24 Sewer Service: the City shall receive sewage at the following points of delivery: 1. 416 S. Cambrian Avenue (upstream of the City's Cambrian Avenue flow metering vault (MS4) located on the site of the City's pump station WB-3 2. 143 First Street (at the City's First Street flow metering vault (MS5) 3. State Highway 304, Pass and ID Building #981 Attachment JA, Water and Wastewater Utility Location, Accounts and Meters, Bremerton Naval Complex, is provided as further reference. Should the City replace any meter providing water or wastewater services to the Navy, the City shall notify the Contracting Officer of such replacement, including the new meter number, within 30 days of initiation of use of the replacement meter. The Contracting Officer shall revise, through modification to the contract, the applicable meter numbers cited in Section B, Section C, and Attachment 1.4 of this contract. C.S DESCRIPTION OF SERVICE. (a) WATER: The City shall provide at its expense all necessary facilities and permits required to connect the City of Bremerton water distribution system to the Government water system at the points of delivery specified in this contract for the purpose of providing reliable water service to NBK Bremerton and PSNS/IMF. The City shall take all reasonable efforts to continuously provide 2,500 gallons per minute of water at a pressure of75 pounds per square inch gauge (psig) at each of the three points of delivery. Water shall be measured through three 10" meters. The water supplied will be clear, potable, and safe for human consumption and in accordance with the applicable standards as promulgated by, and as may be revised by, Federal, state, and local agencies having regulatory authority. (b) SEWER: The City shall provide at its expense all necessary facilities and permits required to receive, carry, treat, and dispose of sewage from NBK Bremerton and PSNS/IMF at the points of delivery specified in this contract. The City shall receive, carry, treat, and dispose of sewage in a manner, and by such means, as will not constitute a hazard to the public health. The City shall operate its sewage facilities in conformity with applicable laws, rules, and regulations as promulgated by, and as may be revised by, Federal, state, and local agencies having regulatory authority. The amount of sewage discharged by the Navy to the City for treatment, reclamation, or disposal through the Cambrian Avenue discharge points shall not exceed a daily average flow of 1,800 gallons per minute (gpm) or a total daily volume of 2.59 million gallons a day (mgd) except that a peak discharge of 2,500 gpm will be allowable. The amount of sewage discharged to the City for treatment, reclamation, or disposal through the First Street discharge point shall not exceed an average daily flow of 300 gpm or a total daily volume of 0043 mgd except that a peak discharge of 500 gpm will be allowable. Flow shall be measured through two 6" meters and one 10" meter. C.6 The Navy hereby grants to the City of Bremerton a revocable permit to enter the service location for any work related to the requirements under this contract. Authorized representatives of the City will be allowed access to the facility at suitable times to perform the obligations of the utility service contract. It is expressly understood that the Navy may limit or restrict the right of access herein granted in N44255-08-C-3005 Page 8 of 24 any manner considered to be necessary for the national security. City personnel requiring base access will obtain appropriate badging and identification as may be required by the Government. C.7 OPERATIONAL COORDINATION MEETINGS. The parties agree that an operational coordination meeting will be held between the City and Navy no less than every six months during the term of the contract. More frequent meetings may be scheduled as appropriate. The purpose of these meetings is to facilitate increased communication and coordination among the parties on such issues as significant changes to operational procedures, planned outages or flushing operations, maintenance requirements, review of key technical criteria or data associated with utility operations, upgrade or replacement of equipment or infrastructure, conservation initiatives, and other issues that may substantially impact the quality or level of service requirements. The meetings will be scheduled by the Utilities Program Manager of Naval Facilities Engineering Command Northwest ~ Bremerton (NA VF ACNW - Bremerton) and will be co-chaired by the Utilities Program Manager of NA VF ACNW Bremerton and the City of Bremerton Public Works Director or their designated representatives. C.S CONTACT AND NOTIFICATION LISTS. The parties agree that a contact and notification list of key personnel for the Navy and City shall be maintained. This list of personnel is found at Attachment J.5, Key Utility Personnel Contact List, Bremerton Naval Complex and City of Bremerton. This list will be revised as necessary but no less than once every six months. Update of this list will be a part of the agenda for the bi-annual Operational Coordination Meetings. C.9 TERM. This contract shall continue in effect for a period of 10 years beginning 01 August 2008 or until terminated at the option of the Government by giving written notice not less than 30 days in advance of the effective date of termination. CLAUSES INCORPORATED BY REFERENCE 52.232-18 Availability Of Funds APR 1984 N44255-08-C-3005 Page 9 of 24 Section D - Packaging and Marking PACKAGING AND MARKING SECTION D - PACKAGING AND MARKING This section is not applicable Rest of page intentionally left blank N44255-08-C-3005 Page 10 of24 Section F - Deliveries or Performance DELIVERY INFORMATION CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS VIC 0001 01-MAY-2008 10 N/A FOB: Destination 0002 01-MAY-2008 10 N/A FOB: Destination 0003 01-MAY-2008 10 N/A FOB: Destination N44255-08-C-3005 Page 11 of24 Section G - Contract Administration Data ACCOUNTING INSTRUCTIONS G.! PAYMENTS. The City shall be paid by the designated disbursing office for services furnished under the contract at the rates specified. All bills for regular monthly service shall be paid according to the Prompt Payment Act. The Government shall be entitled to any discounts customarily applicable to payment of bills by all customers of the City under like conditions of service. The Government shall notify the City, in writing, within 30 days following receipt of any dispu'ted billing. The Government may pay the disputed billings in full under protest, pending a negotiated resolution pursuant to an appropriate audit, if required, and in accordance with the Disputes Clause of the contract. G.2 INVOICES. Invoices for water and sewage service provided under CLINS 0001, 0002, and 0003 shall contain statements of the meter readings at the beginning and end of the billing period, including the consumption during the billing period. Invoices will also clearly state the negotiated rate(s) or City rate applied to the appropriate CLINs. The invoice shall contain the Navy contract number, N44255-08-C-3005; the individual city utility account; and applicable meter numbers. The fixed and volumetric components of the appropriate rate(s) shall be clearly identified for each account. Deductions and Additions to CLIN 0002 in accordance with contract provisions B.2 and B.3 shall be clearly identified. Water and sewage billing shall be on a monthly basis. Submit invoices to: U.S Navy (Insert Government Account Number) P.O. Box 30088 College Station, Texas 77842-3088 GOVERNMENT Utility Account ACCOUNT Number NUMBER Contract No. Service Location Site Name 1300030 NW 43 (TBD) N44255-08-C-3005 1 st and Pacific Bremerton 1300040 NW 43 (TBD) N44255-08-C-3005 Charleston Gate Bremerton 1 st Street & 1300050 NW 43 FW 00007 N44255-08-C-3005 Rainier Ave. Bremerton 143 1 st Avenue - 1300090 NW 43 (TBD) N44255-08-C-3005 MS5 Bremerton 416 S. Cambrian 1300100 NW 43 SE 00004 N44255-08-C-3005 A venue - MS4 Bremerton 416 S. Cambrian 1300120 NW 43 (TBD) N44255-08-C-3005 A venue - MS4 Bremerton State Highway 304 Pass & ID Bldg 4655650 NW 43 SE 00002 N44255-08-C-3005 981 Bremerton - - State Highwa,,- 304 Pass & ID Bldg 4655650 NW 43 FW 00002 N44255-08-C-3005 981 Bremerton N44255-08-C-3005 Page 12 of24 G.3 OTHER COMMUNICATION. All other communication regarding this contract shall be addressed as follows: Utility Service Provider City of Bremerton Attn: Public Works Department 3027 Olympus Drive Bremerton, WA 98310-4799 Govell1illent: Department of Navy Naval Facilities Engineering Command Northwest Attention: Utilities Contracts 1101 T autog Circle Silverdale, WA 98315-1101 GA. ACCOUNTING AND APPROPRIATION DATA. The Certifying Official shall cite funding for recurring services on each invoice. Nonrecurring services will normally be procured through contract modification and shall be separately invoiced. G.5 ACCOUNTING PROCEDURES. The City shall comply with the requirements of the latest revised Office of Management and Budget (OMB) Circular A-87, "Cost Principles for State, Local, and Indian Tribe Governments". Compliance with OMB Circular A-87 will be monitored through Navy review of the periodic reports generated by the Budgeting, Accounting, and Reporting System (BARS) of the Washington State Auditor's Office. G.6 RATE CHANGES. The City shall notify the Navy of any rate changes as far in advance as is reasonable. Changes in rates or terms and conditions of service are subject to the provisions of FAR Clause 52.241-8, "Change in Rates or Terms and Conditions of Service for Unregulated Services (Feb 1995). CLAUSES INCORPORATED BY FULL TEXT N44255-08-C-3005 Page 13 of 24 NA VFAC 5252.201-9300 CONTRACTING OFFICER AUTHORITY (JUN 1994) In no event shall any understanding or agreement between the Contractor and any Government employee other than the Contracting Officer on any contract, modification, change order, letter or verbal direction to the Contractor be effective or binding upon the Government. All such actions must be formalized by a proper contractual document executed by an appointed Contracting Officer. The Contractor is hereby put on notice that in the event a Government employee other than the Contracting Officer directs a change in the work to be performed or increases the scope of the work to be performed, it is the Contractor's responsibility to make inquiry of the Contracting Officer before making the deviation. Payments will not be made without being authorized by an appointed Contracting Officer with the legal authority to bind the Government. (End of clause) N44255-08-C-3005 Page 14 of24 Section H - Special Contract Requirements SPECIAL CONTRACT REQUIREMENTS H.1 SEWAGE SAMPLING. The City shall comply with all applicable federal, state, and local requirements for sewage monitoring and sampling. The City, at a minimum, shall conduct sewage sampling on a monthly basis. Copies of reports of sampling analyses shall be provided to BNC, Code 106. H.2 ANNUAL RATE REVIEWS. Annual rate reviews may be conducted by the Government in accordance with the Federal Acquisition Regulation (FAR) Part 41.401, "Monthly and Annual Review". Notwithstanding mutually negotiated rates for this contract, these annual rate reviews may constitute grounds for rate redetermination in accordance with the requirements of FAR Part 41.401. H.3 METERS. The parties agree that the City shall furnish, install, maintain, repair, calibrate, and read all meters associated with the City's performance requirements under this contract in accordance with FAR Clause 52.241-6, Service Provisions,. The parties agree that in the event any meter is determined through inspection, testing, or other means to not be operable or otherwise not in compliance, the City shall either repair or replace such meter within 60 days. Should such repair or replacement not be feasible, the parties shall negotiate a mutually agreeable estimate of flow to be used for billing purposes. Estimated flow calculations must be negotiated within 60 days from date meter has been determined to be noncompliant or inoperable. H.4 COST OF SERVICE STUDY. The parties agree that the Summary of the Final Negotiations and Rate Analyses for the City of Bremerton and the U.S. Navy Wholesale Water and Sewer Rates, Attachment 1.2, constitutes the basis for development of the 2008 base year rates for this contract. It is further contemplated by the parties that a follow-up cost of service study will be completed and available for mutual review by the parties not less than one year from the end of this contract term. Section I - Contract Clauses CLAUSES INCORPORATED BY REFERENCE 52.202-1 52.203-3 52.203-5 52.203-7 52.203-8 52.203-10 52.203-12 52.204-4 52.204-7 52.209-6 52.215-17 52.215-21 52.219-8 52.222-1 52.222-3 52.222-4 52.222-21 52.222-35 52.222-36 52.222-37 52.222-39 52.223-5 52.223-5 Alt II 52.223-6 52.225-13 52.232-1 52.232-11 52.232-17 52.232-23 52.232-25 52.232-33 52.233-1 52.233-3 52.233-4 52.237-2 52.237-3 Definitions Gratuities Covenant Against Contingent Fees Anti-Kickback Procedures Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity Price Or Fee Adjustment For Illegal Or Improper Activity JAN 1997 Limitation On Payments To Influence Certain Federal SEP 2005 Transactions Printed or Copied Double-Sided on Recycled Paper Central Contractor Registration Protecting the Government's Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment Waiver of Facilities Capital Cost of Money OCT 1997 Requirements for Cost or Pricing Data or Information Other OCT 1997 Than Cost or Pricing Data--Modifications Utilization of Small Business Concerns Notice To The Government Of Labor Disputes Convict Labor Contract Work Hours and Safety Standards Act - Overtime Compensation Prohibition Of Segregated Facilities FEB 1999 Equal Opportunity For Special Disabled Veterans, Veterans SEP 2006 of the Vietnam Era, and Other Eligible Veterans Affirmative Action For Workers With Disabilities JUN 1998 Employment Reports On Special Disabled Veterans, VeteransSEP 2006 Of The Vietnam Era, and Other Eligible Veterans Notification of Employee Rights Concerning Payment of Union Dues or Fees Pollution Prevention and Right-to-Know Information AUG 2003 Pollution Prevention and Right-to-Know Information (Aug AUG 2003 2002) Alt II Drug-Free Workplace Restrictions on Certain Foreign Purchases Payments Extras Interest Assignment Of Claims Prompt Payment Payment by Electronic Funds Transfer--Centra1 Contractor Registration Disputes Protest After Award Applicable Law for Breach of Contract Claim Protection Of Government Buildings, Equipment, And Vegetation Continuity Of Services JUL 2004 APR 1984 APR 1984 JUL 1995 JAN 1997 AUG 2000 JUL 2006 SEP 2006 MAY 2004 FEB 1997 JUN 2003 JUL 2005 DEC 2004 MAY 2001 FEB 2006 APR 1984 APR 1984 JUN 1996 JAN 1986 MAR 2001 OCT 2003 JUL 2002 AUG 1996 OCT 2004 APR 1984 JAN 1991 N44255-08-C-3005 Page 15 of24 Order of Precedence - Utilities Change in Class of Service Contractor's Facilities Multiple Service Locations Notice ofIntent to Disallow Costs Bankruptcy Changes--Fixed Price (Aug 1987) - Alternate I Competition In Subcontracting Subcontracts for Commercial Items Preference for Privately Owned U.S. - Flag Commercial Vessels Termination For Convenience Of The Government (Fixed Price) (May 2004) - Alternate II Default (Fixed-Price Supply & Service) Computer Generated Forms Prohibition On Persons Convicted of Fraud or Other Defense-Contract -Related Felonies 252.203-7002 Display Of DOD Hotline Poster 252.204-7003 Control Of Government Personnel Work Product 252.204-7004 Alt A Central Contractor Registration (52.204-7) Alternate A 252.209-7004 Subcontracting With Firms That Are Owned or Controlled By The Government of a Terrorist Country Pricing Adjustments Prohibition On Storage And Disposal Of Toxic And Hazardous Materials Government Access Pricing Of Contract Modifications Requests for Equitable Adjustment Transportation of Supplies by Sea 52.241-2 52.241-4 52.241-5 52.241-11 52.242-1 52.242-13 52.243-1 Alt I 52.244-5 52.244-6 52.247-64 52.249-2 Alt II 52.249-8 52.253-1 252.203-7001 252.215-7000 252.223-7006 252.241-7001 252.243-7001 252.243-7002 252.247-7023 CLAUSES INCORPORATED BY FULL TEXT FEB 1995 FEB 1995 FEB 1995 FEB 1995 APR 1984 JUL 1995 APR 1984 DEC 1996 MAR 2007 FEB 2006 SEP 1996 APR 1984 IAN 1991 DEC 2004 DEC 1991 APR 1992 NOV 2003 MAR 1998 DEC 1991 APR 1993 DEC 1991 DEC 1991 MAR 1998 MAY 2002 52.215-8 ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT (OCT 1997) N44255-08-C-3005 Page 16 of24 Any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: (a) The Schedule (excluding the specifications). (c) Contract clauses. (b) Representations and other instructions. (d) Other documents, exhibits, and attachments. ( e) The sp~cifications. (End of clause) N44255-08-C-3005 Page 17 of24 52.222-26 EQUAL OPPORTUNITY (MAR 2007) ALTERNATE I (FEB 1999) Notice. The following terms of this clause are waived for this contract: No Terms Are Waived. Definition. United States, as used in this clause, means the 50 States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake Island. ~ (b)(1) If, during any l2-month period (including the 12 months preceding the award of this contract), the Contractor has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of $10,000, the Contractor shall comply with this clause, except for work performed outside the United States by employees who were not recruited within the United States. Upon request, the Contractor shall provide information necessary to determine the applicability of this clause. (2) If the Contractor is a religious corporation, association, educational institution, or society, the requirements of this clause do not apply with respect to the employment of individuals of a particular religion to perform work connected with the carrying on of the Contractor's activities (41 CFR 60-1.5). (c) (1) The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. However, it shall not be a violation of this clause for the Contractor to extend a publicly announced preference in employment to Indians living on or near an Indian reservation, in connection with employment opportunities on or near an Indian reservation, as permitted by 41 CFR 60-1.5. (2) The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. This shall include, but not be limited to, (i) employment, (ii) upgrading, (iii) demotion, (iv) transfer, (v) recruitment or recruitment advertising, (vi) layoff or termination, (vii) rates of payor other forms of compensation, and (viii) selection for training, including apprenticeship. (3) The Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause. (4) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (5) The Contractor shall send, to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, the notice to be provided by the Contracting Officer advising the labor union or workers' representative of the Contractor's commitments under this clause, and post copies of the notice in conspicuous places available to employees and applicants for employment. (6) The Contractor shall comply with Executive Order 11246, as amended, and the rules, regulations, and orders of the Secretary of Labor. (7) The Contractor shall furnish to the contracting agency all information required by Executive Order 11246, as amended, and by the rules, regulations, and orders of the Secretary of Labor. The Contractor shall also file Standard Form 100 (EEO-l), or any successor form, as prescribed in 41 CFR part 60-1. Unless the Contractor has filed within the 12 months preceding the date of contract award, the Contractor shall, within 30 days after contract award, apply to either the regional Office of Federal Contract Compliance Programs (OFCCP) or the local office of the Equal Employment Opportunity Commission for the necessary forms. (8) The Contractor shall permit access to its premises, during normal business hours, by the contracting agency or the OFCCP for the purpose of conducting on-site compliance evaluations and complaint investigations. The Contractor shall permit the Government to inspect and copy any books, accounts, records (including computerized N44255-08-C-3005 Page 18 of24 records), and other material that may be relevant to the matter under investigation and pertinent to compliance with Executive Order 11246, as amended, and rules and regulations that implement the Executive Order. (9) If the OFCCP determines that the Contractor is not in compliance with this clause or any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts, under the procedures authorized in Executive Order 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive Order 11246, as amended; in the rules, regulations, and orders of the Secretary of Labor; or as otherwise provided by law. (10) The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order that is not exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order 11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor. (11) The Contractor shall take such action with respect to any subcontract or purchase order as the contracting officer may direct as a means of enforcing these terms and conditions, including sanctions for noncompliance; provided, that if the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of any direction, the Contractor may request the United States to enter into the litigation to protect the interests of the United States. (c) Notwithstanding any other clause in this contract, disputes relative to this clause will be governed by the procedures in 41 CFR 60-1.1. (End of clause) 52.241-3 SCOPE AND DURATION OF CONTRACT (FEB 1995) (a) For the period 01 August 2008 through 31 July 2018 the Contractor agrees to furnish and the Government agrees to purchase water and sewer utility service in accordance with the applicable tariff(s), rules, and regulations as approved by the applicable governing regulatory body and as set forth in the contract. (b) It is expressly understood that neither the Contractor nor the Government is under any obligation to continue any service under the terms and conditions of this contract beyond the expiration date. (c) The Contractor shall provide the Government with one complete set of rates, terms, and conditions of service which are in effect as of the date of this contract and any subsequently approved rates. (d) The Contractor shall be paid at the applicable rate(s) under the tariff and the Government shall be liable for the minimum monthly charge, if any, specified in this contract commencing with the period in which service is initially furnished and continuing for the term of this contract. Any minimum monthly charge specified in this contract shall be equitably prorated for the periods in which commencement and termination of this contract become effective. (End of clause) 52.241-6 SERVICE PROVISIONS (FEB 1995) N44255-08-C-3005 Page 19 of24 (a) Measurement of service. (1) All service furnished by the Contractor shall be measured by suitable metering equipment of standard manufacture, to be furnished, installed, maintained, repaired, calibrated, and read by the Contractor at its expense. When more than a single meter is installed at a service location, the readings thereof may be billed conjunctively, if appropriate. In the event any meter fails to register (or registers incorrectly) the service furnished, the parties shall agree upon the length of time of meter malfunction and the quantity of service delivered during such period of time. An appropriate adjustment shall be made to the next invoice for the purpose of correcting such errors. However, any meter which registers not more than 3% percent slow or fast shall be deemed correct. (2) The Contractor shall read all meters at periodic intervals of approximately 30 days or in accordance with the policy of the cognizant regulatory body or applicable bylaws. All billings based on meter readings of shorter duration than the normal billing cycle shall be prorated accordingly. (b) Meter test. (1) The Contractor, at its expense, shall periodically inspect and test Contractor-installed meters larger than 3" diameter every two (2) years, meters 1 Y2 " to 2" diameter at intervals not exceeding four (4) years. Meters 1" diameter and smaller shall be inspected and tested at intervals not exceeding five (5) years. The Government has the right to have representation during the inspection and test. (2) At the written request of the Contracting Officer, the Contractor shall make additional tests of any or all such meters in the presence of Government representatives. The cost of such additional tests shall be borne by the Government if the percentage of errors is found to be not more than 3% percent slow or fast. (3) No meter shall be placed in service or allowed to remain in service which has an error in registration in excess of 3% percent under normal operating conditions. (c) Change in volume or character. Reasonable notice shall be given by the Contracting Officer to the Contractor regarding any material changes anticipated in the volume or characteristics of the utility service required at each location. (d) Continuity of service and consumption. The Contractor shall use reasonable diligence to provide a regular and uninterrupted supply of service at each service location, but shall not be liable for damages, breach of contract or otherwise, to the Government for failure, suspension, diminution, or other variations of service occasioned by or in consequence of any cause beyond the control of the Contractor, including but not limited to acts of God or of the public enemy, fires, floods, earthquakes, or other catastrophe, strikes, or failure or breakdown of transmission or other facilities. If any such failure, suspension, diminution, or other variation of service shall aggregate more than 8 hour(s) during any billing period hereunder, an equitable adjustment shall be made in the monthly billing specified in this contract (including the minimum monthly charge). (End of clause) 52.241-8 CHANGE IN RATES OR TERMS AND CONDITIONS OF SERVICE FOR UNREGULATED SERVICES (FEB 1995) (a) This clause applies to the extent that services furnished hereunder are not subject to regulation by a regulatory body. (b) After one hundred eighty (180) days, either party may request a change in rates or terms and conditions of service, unless otherwise provided in this contract. Both parties agree to enter in negotiations concerning such changes upon receipt of a written request detailing the proposed changes and specifying the reasons for the N44255-08-C-3005 Page 20 of 24 proposed changes. (c) The effective date of any change shall be as agreed to by the parties. The Contractor agrees that throughout the life of this contract the rates so negotiated will not be in excess of published and unpublished rates charged to any other customer of the same class under similar tenns and conditions of use and service. (d) The failure of the parties to agree upon any change after a reasonable period of time shall be a dispute under the Disputes clause of this contract. (e) Any changes to rates, terms, or conditions as a result of such negotiations shall be made a part of this contract by the issuance of a contract modification. (End of clause) 52.241-9 CONNECTION CHARGE (FEB 1995) (a) Charge. In consideration of the Contractor furnishing and installing at its expense the new connection facilities described herein, the Government shall pay the Contractor a connection charge. The payment shall be in the form of progress payments, advance payments or as a lump sum, as agreed to by the parties and as permitted by applicable law. The total amount payable shall be either the estimated cost of $(As negotiated for each modification applicable to connection charges) less the agreed to salvage value of $(as negotiated for each modification applicable to connection charges), or the actual cost less the salvage value, whichever is less. As a condition precedent to final payment, the Contractor shall execute a release of any claims against the Government arising under or by the virtue of such installation. (b) Ownership, operation, maintenance and repair of new facilities to be provided. The facilities to be supplied by the Contractor under this clause, notwithstanding the payment by the Government of a connection charge, shall be and remain the property of the Contractor and shall, at all times during the life of this contract or any renewals thereof, be operated, maintained, and repaired by the Contractor at its expense. All taxes and other charges in connection therewith, together with all liability arising out of the construction, operations, maintenance, or repair of such facilities, shall be the obligation of the Contractor. (c) Credits. (1) The Contractor agrees to allow the Government, on each monthly bill for service furnished under this contract to the service location, a credit of (as negotiated for each modification applicable to connection charges) percent of the amount of each such bill as rendered until the accumulation of credits shall equal the amount of such connection charge, provided that the Contractor may at any time allow a credit up to 100 percent of the amount of each such bill. (2) In the event the Contractor, before any termination of this contract but after completion of the facilities provided for in this clause, serves any customer other than the Government (regardless of whether the Government is being served simultaneously, intermittently, or not at all) by means of these facilities, the Contractor shall promptly notify the Government in writing. Unless otherwise agreed by the parties in writing at that time, the Contractor shall promptly accelerate the credits provided for under subparagraph (c)( 1) of this clause, up to 100 percent of each monthly bill until there is refunded the amount that reflects the Govenunent's connection costs for that portion of the facilities used in serving others. (3) In the event the Contractor terminates this contract, or defaults in performance, prior to full credit of any connection charge paid by the Government, the Contractor shall pay to the Government an amount equal to the uncredited balance of the connection charge as of the date of the tern1ination or default. N44255-08-C-3005 Page 21 of24 (d) Termination before completion offacilities. The Government reserves the right to terminate this contract at any time before completion of the facilities with respect to which the Government is to pay a connection charge. In the event the Government exercises this right, the Contractor shall be paid the cost of any work accomplished, including direct and indirect costs reasonably allocable to the completed work prior to the time of termination by the Government, plus the cost of removal, less the salvage value. (e) Termination after completion offacilities. In the event the Government terminates this contract after completion of the facilities with respect to which the Government has paid a connection charge, but before the crediting in full by the Contractor of any connection charge in accordance with the terms of this contract, the Contractor shall have the following options: (1) To retain in place for (as negotiated for each modification applicable to connection charges) months after the notice of termination by the Government such facilities on condition that-- (i) If, during such (as negotiated for each modification for applicable connection charges) month period, the Contractor serves any other customer by means of such facilities, the Contractor, shall, in lieu of allowing credits, pay the Government during such period installments in like amount, manner, and extent as the credit provided for under paragraph (c) of this clause before such termination; and (ii) Immediately after such (as negotiated for each modification applicable to connection charges) month period the Contractor shall promptly pay in full to the Government the uncredited balance of the connection charge. (2) To remove such facilities at the Contractor's own expense within (as negotiated for each modification applicable to connection charges) months after the effective date of the termination by the Government. If the Contractor elects to remove such facilities, the Government shall then have the option of purchasing such facilities at the agreed salvage value set forth herein; and provided further, that the Contractor shall, at the direction of the Government, leave in place such facilities located on Government property which the Government elects to purchase at the agreed salvage value. (End of clause) 52.241-10 TERMINATION LIABILITY (FEB 1995) (a) If the Government discontinues utility service under this contract before completion of the facilities cost recovery period specified in paragraph (b) of this clause, in consideration of the Contractor furnishing and installing at its expense, the new facility described herein, the Government shall pay termination charges, calculated as set forth in this clause. (b) Facility cost recovery period. The period of time, not exceeding the term of this contract, during which the net cost of the new facility, shall be recovered by the Contractor is-- (As mutually negotiated by the parties) (c) Net facility cost. The cost of the new facility, less the agreed upon salvage value of such facility, is-- $(As mutually negotiated by the parties) (d) Monthly facility cost recovery rate. The monthly facility cost recovery rate which the Government shall pay the Contractor whether or not service is received is-- N44255-08-C-3005 Page 22 of 24 $(As mutually negotiated by the parties) (e) Termination charges. Termination charges = $(As mutually negotiated by the parties) (f) If the Contractor has recovered its capital costs at the time of termination there will be no temlination liability charge. (End of clause) 52.241-12 NONREFUNDABLE, NONRECURRING SERVICE CHARGE (FEB 1995) As provided herein, the Government will pay a nonrefundable, nonrecurring charge when the rules and regulations of a Contractor require that a customer pay (1) a charge for the initiation of service, (2) a contribution in aid of construction, or (3) a nonrefundable membership fee. This charge may be in addition to or in lieu of a connection charge. Therefore, there is hereby added to the Contractor's schedule a nonrefundable, nonrecurring charge for (as mutually negotiated for each modification applicable to connection charges) negotiated in the amount of $ (as mutually negotiated for each modification applicable to connection charges). dollars payable. (End of clause) 52.241-13 CAPITAL CREDITS (FEB 1995) (a) The Government is a member of the (NOT APPLICABLE) and as any other member, is entitled to capital credits consistent with the bylaws of the cooperative, which states the obligation of the Contractor to pay capital credits and which specifies the method and time of payment. (b) The Contractor shall furnish to the Contracting Officer, or the designated representative of the Contracting Officer, in writing, on a (NOT APPLICABLE) basis a list of accrued credits by contract number, year, and delivery point. (c) Payment of capital credits will be made by check, payable to the (NOT APPLICABLE), and forwarded to the Contracting Officer at (NOT APPLICABLE) unless otherwise directed in writing by the Contracting Officer. Checks shall cite the current or last contract number and indicate whether the check is partial or final payment for all capital credits accrued. (End of clause) 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these addressees): N44255-08-C-3005 Page 23 of 24 http://www. amet. gov /tllr/fac frame. html (end of clause) 252.241-7000 SUPERSEDING CONTRACT. (DEC 1991) This contract supersedes contract No. N44255-96-C-2288, dated 01 December 1997, and N44255-08-C-3006, awarded 30 November 2007, which provided similar services. Any capital credits accrued to the Government, any remaining credits due to the Government under the connection charge, or any termination liability are transferred to this contract, as follows: Capital Credits: None Outstanding Outstanding Connection Charge Credits: None Outstanding Termination Liability Charges: None Outstanding. (End of clause) N44255-08-C-3005 Page 24 of 24 Section J - List of Documents, Exhibits and Other Attachments ATTACHMENTS J.l Summary of Final Negotiations and Rate Analyses for the City ofBremerton and U.S.Navy Wholesale Water and Sewer Rates, 11 March 2008 1.2 Methodology For Adjustment Water and Wastewater Rates, 21 June 2008 (Includes Narrative and Spreadsheets) 1.3 Bremerton Municipal Code 15.06, Appendix A, Assessments, Rates, Fees, and Charges, Effective January 1,2008. J.4 Water and Wastewater Utility Locations, Accounts, and Metering For Bremerton Naval Complex, 14 March 2008 1.5 Key Utility Personnel Contact List, Bremerton Naval Complex and City of Bremerton, 04 April 2008 Methodology for Adjustment of Water and Wastewater Rates N44255-08-C-3005 Attachment J.2 04 April 2008 A. RATIONALE: (1) The paIiies have agreed to an approach for annually escalating or reducing rates that tie to City of Bremerton rate changes. This method ensures an equitable treatment for all customers of the City and provides transparency of costs to the Navy. (2) The parties have agreed that any future rate changes applied to the Navy accounts for contract line items 0001 (water) and 0002 (wastewater) shall be tied directly to the weighted average of rate increases applied to all Non-Navy customers for water and/or wastewater, respectively. For purposes of calculating rate increases to the Navy, the Non-Navy baseline customer classes and billable units will remain fixed through the life of the contract. Only the Non-Navy revenues generated for the Non-Navy customer classes will vary from year to year based on the rate increases applied by the City through revisions to the applicable City ordnances. As an example, the Non-Navy revenue from ratesin Year 1 will be compared to the Non- Navy revenue from rates in Year 2. The Navy rates will be increased by the overall weighted percent increase to all Non-Navy customer classes from Year 1 to Year 2. The next year, the Non-Navy revenue from rates in Year 2 will be compared to the Non-Navy revenue from rates for Year 3. The Navy rates will be increased by the overall weighted percent increase to all Non-Navy classes from Year 2 to 3. This methodology will continue through the life of the contract. The number and types of customer classes and the billable usage used each year for the classes will always remain unchanged from Year 1. This approach guarantees that the Navy's rates will adjust as the City's rates adjust as a whole. The Navy notes that this approach will need to be modified if the City significantly changes its rate structure during the contract term. Example of such a rate structure changes would include adding an additional rate block or shifting to seasonal rates. If this should occur, the City will be required to propose how the adjustment should be handled during the rate transition year. The Navy and the City will then negotiate a change to the adjustment formula for the next applicable year based on the City's revised rate structure. 1 Methodology for Adjustment of Water and Wastewater Rates N44255-08-C-3005 Attachment J.3 04 April 2008 B. METHODOLOGY. (1) In order to verify the weighted average escalator between any given year and any year + 1 of the contract, it is necessary to input the rates and charges approved by the Bremerton City Council into the spreadsheet found in Attachment 1.2 The revised rates and charges are multiplied by the baseline usage to calculate the revenue for any year + 1. (2) The parties agree that the baseline usage provided at the begilming of the contract by the City of Bremerton shall not change during the entire contract term. The baseline usages for water and wastewater, respectively, are found in Attachment J under the water and wastewater spreadsheets titled "Base Year Calculations ". (3) The formula for the percentage change in rate and charges for any year + 1 is to divide the revenue in year + 1 by the revenue from the previous year. The formula for these calculations are found in the Attachment J.2 spreadsheet titled "Summary". Attachment J.2 also contains template spreadsheets for Years 2 through 10 for water and wastewater. These spreadsheets contain all formulas necessary to build calculations once the City has provided the new rates. These spreadsheets for water and wastewater are titled "Sample Calculations" for each respective year 2 through 10. While escalations have been assumed, the same calculation principles would apply to reductions. The spreadsheets have been developed to show the impact of different sets of rate increases and the spreadsheet entitled "Example Rate Increases" shows the different rate increase scenarios. (4) The City will provide any revised rates and revenues for Navy review in accordance with Attachment J.2 no less than 30 days prior to the effective date of any such adjustments. It is anticipated that future rate adjustments will nonnally become effective 01 January. 2 City of Bremerton Summary of the Final Negotiations and Rate Analyses for the City of Bremerton and U.S. Navy Wholesale Water and Sewer Rates March 2008 Prepared by: HDR Engineering, Inc. 500 108th Ave. N.E. Suite 1200 Bellevue, WA 98004 fD3. March 11,2008 Mr. Phil Williams, P.E. Director of Public Works & Utilities City of Bremerton 3027 Olympus Drive Bremerton, Washington 98310 Subject: Summary ofthe Technical Analysis to Support the U.S. Navy Contract Negotiations Dear Mr. Williams: HDR Engineering, Inc. (HDR) was retained by the City ofBremerton in 2004 to conduct a comprehensive water and sewer rate study. This study was the foundation for establishing cost- based rates for the City's customers, which included the U.S. Navy (Navy). The City had a contract with the City for wholesale water and sewer service (Navy Contract N44255-96- C2288) which recently expired on December 1,2008. Given that, the City and Navy have been working diligently to negotiate a new ten-year agreement for cost-based wholesale water and sewer services. As you know, our negotiations recently were completed with the Navy and all technical issues associated with calculating cost-based rates were mutually agreed upon and resolved. This report is intended to "bridge the gap" between the original 2004 study and the rates to be charged to the Navy beginning on May 1,2008 under the new agreement. More importantly, the City's successfully negotiation with the Navy has established a methodology that should be mutually acceptable for the parties at the time ofthe next contract negotiation (2018). This report will provide summary level documentation of the key issues that were negotiated and modified within the City's 2004 comprehensive rate study to produce the final negotiated water and sewer rates for the Navy. Thank you for the opportunity to provide this technical assistance. Sincerely yours, HDR Engineering, Inc. ~v~ Tom Gould Vice President National Technical Director of Finance and Rates HDR Engineering, Inc. 5!)[l1 C0ih AV/Jr"Je wE $Ulle 1200 Bel1e'lli€, \VA 9ll\104-S!J49 Phi);W 1415) 450,6100 f3~, 11251453,7101 \Vy.;-~v_Jdrmt am~ ~,' N~^ ::'" x ^ ~ :, <~ ~^ ^ ~~ ',':/~ <; ", ~ Y'>.:' Contents, ~" "',' '. ',' ','" " , ' /y , , =:.. , ~ < .f. ~ y , i ~ ~ y 1 Development of the Navy's Water Rate 1.1 Introduction........ ....................... ............ ...... ........ ................................................ .... 1 1.2 Overview of the Key Technical Issues .................................................................... 1 1.3 Discussion of the Key Water Technical Issues .......................................................1 1.4 Summary of the Final Navy Water Cost of Service ................................................ 5 1.5 Development of the Proposed Water Rates............................................................. 6 1.6 Adjustments and Escalation of the Rates Through Time ........................................ 6 1.7 Summary ofthe Water Rate Analysis:....................................................................7 2 Development of the Navy's Sewer Rate 2.1 Introduction... ......................... ................. .... ............... ............................ ....... .......... 8 2.2 Overview of the Key Technical Issues.................................................................... 8 2.3 Discussion of the Key Sewer Technical Issues ....................................................... 8 2.4 Summary of the Final Navy Sewer Cost of Service.............................................. 11 2.5 Development ofthe Proposed Sewer Rates .......................................................... 11 2.6 Adjustments and Escalation of the Rates Through Time ......................................12 2.7 Summary of the Sewer Rate Analysis...................................................................12 Technical Appendices - Water and Sewer Rate Analyses li)~ Contents City of Bremerton - Wholesale Contract Negotiations with the U.S. Navy . . . . . ...., ." ::.~ , :Section"1 .".' ..' . . :.~ .. /" ., .::~ . ^ .:~. . 'iD~v@lop,~~nf'pft...e ..Navy's 'W~t~r'(Ra.~~s'<';' , ..' .' ...../, . '..... .; .:". '>'.;:' ,. 'ff.' ,:F." ., .:r ." J' .~., "> . ,~. ..( ,":, .x"." 1.1 Introduction In 2004, Economic and Engineering Services, Inc. (EES)l was retained by the City of Bremerton (City) to develop a comprehensive water and sewer rate study. That rate study report was prepared to provide the basis for establishing cost-based rates for the City's retail and wholesale customers. The City serves the U.S. Navy (Navy) with wholesale water service via a contract (Navy Contract N44255-96-C2288). The 2004 rate study provided the basis for the City and Navy to negotiate a fair and equitable methodology between the parties. The final negotiated methodology and cost of service results would serve as the basis for a new 10-year contract for water service between the parties. 1.2 Overview of the Key! Technical Issues In the process of negotiating a new contract with the Navy, there were a number of water cost allocation issues that were discussed and resolved between the parties. Specifically, these issues were as follows: . Navy contribution of payment in-lieu-oftaxes (PILOT) . Intergovernmental payments . UUD Payments . Equitable Allocation of Distribution Mains . Confirmation of past Navy capital contributions-in-aid of construction . Establishment of a "fair" rate of return methodology · Method to escalate 2004 final allocations to 2008 rate levels Provided below is a summary discussion of each of these technical points and the modification made to the 2004 rate model. 1.3 Discussion of the Key Water Technical Issues The key technical issues identified above for the water utility were negotiated between the parties and a mutually acceptable resolution was reached. The issue and final resolution of each is discussed below. NAVY CONTRIBUTION OF PAYMENT IN- LIEU-OF TAXES (PILOT) - The City pays 8.5% PILOT on revenues received. In the 2004 rate analysis, the Navy's revenues were excluded from this calculation. In the process of reviewing various technical issues in the negotiation process, the 1 Economic and Engineering Services, Inc. was acquired by HDR Engineering, Inc. (HDR) in the fall of2004. L ~~ City of Bremerton rl...J..... \. Development of the Navy's Water Rates 1 City discovered that the Navy's revenues had erroneously been excluded within the revenue requirements (Water Exhibit 2, Page 6 of 7). The City provided documentation to the Navy to satisfy the Navy that PILOT was paid on the revenues received from the Navy. Given that, the total amount of PILOT was adjusted to reflect this modification. In the original analysis, the value shown for 2004 was $433,897. With the inclusion of the Navy's revenues in the calculation, the final modified amount is $519,272. INTERGOVERNMENTAL PAYMENTS - In the 2004 study, the intergovernmental payments were budgeted figures, and were calculated for 2005 and beyond. The parties agreed that the intergovernmental services would be calculated for 2004 using the approach used in the 2005 test period. This reduced the payments in 2004 from $249,055 to $231,791. AMORTIZATION OF ULID PAYMENTS - In the original cost of service study, two UUD payments of $120,000 each were included in the 2004 revenue requirement analysis (Exhibit 2, Page 6 of 7). The Navy correctly noted that these two payments were "one-time" payments, and the City agreed with that observation. The Navy's position on these payments was that "one- time" or non-recurring payments should be amortized over the life of the contract. After discussing this issue, the City concurred with the Navy and agreed to amortize these payments over a five-year period. It is important to note that this is an issue that is specific to this 2004 test period and going forward this should not be an issue in future rate calculations. However, there certainly may be other "one-time" or non-recurring payments that the Navy and City will need to agree upon for their inclusion and handling in future rate studies. The amortization of the UUD payment was not directly addressed in Water Exhibit 2. The City wanted to maintain the "integrity" of Water Exhibit 2 and allocate the full UUD to all customers on Water Exhibit 10, Page 4 of 4. In that process, the Navy is allocated a full (one-time) UUD payment in Water Exhibit 112. The results of Exhibit 11 are carried forward to Exhibit 12. At that point, a credit is provided to the Navy for the UUD payment. The footnote to that Exhibit details the credit provided. The net effect is the UUD payment made by the Navy for the test year is the equivalent of a five year amortization schedule. It should also be noted that the UUD credit was provided before the additional tax calculation on Water Exhibit 12, so the City believes they have fairly treated the Navy in this crediting process. EQUITABLE ALLOCATION OF WATER DISTRIBUTION MAINS - Distribution mains assets are classified on Water Exhibit 8, Page 1 of 2. In the 2004 study, distribution mains are split between those 12" and larger and mains smaller than 12". In the original 2004 study, the City allocated a portion of all distribution mains to the Navy. The Navy objected to this allocation and noted that they are served through three (3) - 10" meters and should not be allocated any of the smaller sized mains on the system. The City recognized and acknowledged this point, but noted that the Navy did benefit from mains that were 8" and larger (i.e. reliability, etc). Given this discussion between the parties, the City and Navy was able to reach a mutually acceptable compromIse. One of the challenges of attempting to segregate the distributions mains by size is the City's 2 The Navy's UUD payment, while not clearly seen in this exhibit, is the one-time amount, and not the agreed upon amortized amount. L ""'""'~ City of Bremerton I"l...J... '- Development of the Navy's Water Rates 2 asset data does not easily support that calculation. The Navy recognized this data limitation and accepted the City's proposed methodology to reasonably reflect the Navy's concerns for the equitable allocation of these plant assets. The final resolution concerning the allocation of distributions mains was to divide the mains into three categories. These categories were 2" - 6", 8" to 12" and greater than 12". As noted previously, the City did not have specific plant asset records to split the 12" and small mains into the 2" - 6" and 8" to 12" categories. Given that, the agreed upon method was to split the 12" and smaller mains (asset values) on the basis of the linear feet of installed main. The 2004 study indicated the City has 1,407,269 feet of 2" - 12" mains. Of this amount, 650,735 linear feet was related to the 2" to 6" mains. This is 46.2% of the 2" - 12" mains. The 46.2% was then applied to the total asset value for the 2" - 12" mains to determine the asset value for the 2" - 6" mains. The balance of the 2" - 12" was considered to be a reasonable proxy for the 8" - 12" distribution mains. In the final allocation methodology, none of the 2" - 6" mains were allocated to the Navy. However, the Navy was allocated a proportional share of all mains 8" and larger. At the time of the next cost of service study, it is presumed that the linear feet calculation will be updated to reflect the general methodology used within this final model. CONFIRMATION OF PAST NAVY CAPITAL CONTRIBUTIONS-IN-AID-OF CONSTRUCTION - In the calculation of rate base (net plant investment), the traditional rate setting formula deducts any contributions-in-aid-of construction from the net plant in service value. Within the City's study, this item can be found on Exhibit 8, Page 2 of2. A major concern of the Navy was the amount of contributions-in-aid-of construction credited to the Navy. A complicating factor in the discussion was a prior contract with the Navy that had segregated O&M payments from capital payments. The City explained that the past Navy capital payments were, for the most part, simply the equivalent of a rate funded capital payment and not a contribution-in-aid-of construction. Since that prior contract, the Navy's water rates now include both an O&M and capital infrastructure component so this issue should not a problem in the future. After much discussion, sharing of information and documentation, and a formal audit by the Navy, the Navy concurred that the City's calculation of the contributions-in-aid, along with their use within the calculation of rate base was appropriate. In short, the Navy concurred that the handling of the contributions-in-aid-of the construction on Water Exhibit 8 were correct and acceptable. ESTABLISHMENT OF A "FAIR" RATE OF RETURN METHODOLOGY FOR THE NAVY - A rate of return is used to earn a return on investment. There are multiple methods that may be used to establish a "fair" rate of return. In the original 2004 rate study, the Navy was assessed a 9.0% rate of return. The Navy objected to this level of rate of return as being excessive. An important point of discussion that arose concerning this issue was the recognition that the Navy is a "non- owner" of the City's system, and the City as the "owner" of the system is entitled to a "fair" rate of return. The Navy acknowledged that position but believed that the City's "risk" associated with serving the Navy was less than the City was advocating. Different approaches were discussed as to how a fair rate of return could be established for contracting purposes and the City proposed a method of using the cost of debt + a risk premium. The City proposed a risk premium of 2.5%. Using the City's methodology, that would produce a water utility rate of I-i)~ City of Bremerton Development of the Navy's Water Rates 3 return of7.632%. The Navy agreed with the overall approach, but requested justification for the level of risk premium and overall rate of return. The City's response to the Navy regarding the question of reasonableness for this rate of return was a recent rate case of the Anchorage Water and Wastewater Utility (AWWU). AWWU is a municipal utility that serves the greater Anchorage area. A unique aspect of this municipal utility is that it is regulated and its rates and rate of return are set by the Alaska Regulatory Utility Commission (RUe). Anchorage recently went through a rate filing for their water utility (filing U-06-45, Order 7 [7-16-07]). As a part of that filing, Anchorage needed to file for an overall rate of return and return on equity. In the end, the RUC authorizes a return on equity for AWWU of 10.1% and an overall rate of return of7.31%. The City noted to the Navy that this independent regulatory body considered the issues of risk for a municipal utility and established an overall rate of return that was nearly identical to the rate of return that the City proposed to the Navy. Based in part on that justification, along with other discussions, the Navy accepted the City's proposed methodology for establishing the water utility rate of return for the Navy. As a part of the accepted methodology for rate of return a detailed formula or approach was developed. The proposed formula for determining the Navy's "fair" rate of return was as follows: Cost of Debt + a Risk Premium of2.5% = Total Rate of Return The risk premium of2.5% will be fixed for the duration of the contract term. The rate of return will vary over time, but the only variable that will change is the cost of debt. In determining the final rate of return for rate setting purposes, there are conditional tests (e.g. use the greater of, etc.) to assure that the resulting rate of return from the formula does not create or lead to unintended consequences (e.g. a rate of return less than the inside City customers, a rate of return greater than other wholesale customers, etc.). Specifically, the proposed definition for determining the rate of return for rate setting purposes is as follows: "The Rate of Return allowed under this contract shall be the City's cost of debt plus a risk premium of 2. 5%. The rate of return will be reviewed in any cost of service study prepared by the City for its utilities throughout the life of this contract. The rate of return shall also meet the following tests: 1) It shall be the greater of a. The City's cost of embedded debt plus 2.5%, or b. The City's current cost of borrow ing plus 2.5% 2) It shall always be greater than or equal to the rate of return for in-City retail customers (owner customers), but less than or equal to the rate of return for outside city customers 3) It shall always be greater than or equal to zero The City's "cost of borrowing" shall be the numerical (simple) average of at least three recent debt issues (within the previous 90 days if possible) in the marketplace L ~~ City of Bremerton r-1.J... '- Development of the Navy's Water Rates 4 for municipal entities with similar terms and credit ratings. The City's "cost of embedded debt" shall be the weighted average of all non-subsidized outstanding debt for the combined utilities. These indexes shall be submitted to the Navy for review and comment prior to use in a future COSA prepared by the City. " As noted previously, using this specific methodology the proposed overall rate of return for the water utility was 7.632%. Attached as part of the water cost of service exhibits is the calculation of the proposed rate of return for the water study. This proposed rate of return is 1.368% less than the City's original proposed rate of return of9.0%. METHOD TO ESCALATE THE 2004 COSTS TO 2008 COST LEVELS - The water cost of service study conducted in 2004 allocated 2004 dollars (costs) to the Navy. The City adjusted their overall water rates by 30% in 2004. In 2006, the City again adjusted the water rates by an overall 15%, and then 4.2% in 2007 and on January 1,2008 there was a 3.5% adjustment. The City and Navy discussed the most appropriate method to escalate the Navy's allocated 2004 costs to 2008 rate levels. A complicating factor was the Navy's allocation of 2004 costs were at cost of service levels, yet the retail customers on the City's system had their rates "phased-in" to mitigate the rate impacts. After comparing methodologies, the City and Navy agreed upon a final methodology. An important element in the selection by the parties of the final escalation methodology is that the City's escalated revenues and Navy's escalated revenues, when added together, tied to the overall revenue requirements of the City for each particular year. At the same time, the methodology maintained the same relationship between the Navy revenues and other non-Navy (retail) revenues through the escalation periods. Given a methodology to escalate the costs, it was determined that the Navy's 2004 costs would be escalated by 6.5% for the 2006 adjustment, then by 4.2% for the 2007 adjustment and finally by 3.5% for the 2008 adjustment. The effect of this series of escalations is to take the Navy's 2004 allocated costs and bring them up to 2008 levels for purposes of designing final water rates. An exhibit has been included within the water technical appendices documenting the escalation of the Navy's 2004 water costs to 2008 rate levels. 1.4 Summary of the Final Navy Water Cost of Service Based upon the specific issues noted above, the original 2004 water cost of service analysis was updated for final mutually agreed upon methodology to allocate water costs to the Navy. Provided below in Table 1 is a summary of the allocation and cost escalation process. ~ , '>" ~ < , ~ ^ y..\ ~ , ." , ' , Table 1 ' , " '" , , "j " , ',~ Summ~ry of the Final !Navy Water C'ost of Service Analysis : ^' y/ / / y ~ y Y>,'/'<< ~""../' , w.., ,', ~~~ ' ,~~yj~ed ... . ' ':A:no.cation $1,353,960 Plus 2006; 2667 & ~008' Rate AdjjjstJQelits> . . .~ . , 15.17% , .~..?> /. '. 260'8,; .' ,'. '.:. Rate Levels $1,559,335 . .i>es~.riptlon Water Cost of Service Given a targeted level of revenue, the final step of the process is to design rates to collect the targeted amount. L ~~ City of Bremerton IV... '- Development of the Navy's Water Rates 5 1.5 Development of the Proposed Water Rates The water rate calculated for the Navy uses the same rate structure as the existing water rate. The City and Navy discussed shifting more of the rate to the variable component, but the City concluded that the Navy's proposal of 25% fixed and 75% variable was very similar to the existing 30%/70% relationship in the existing rates. For that reason, the proposed water rates were designed around 30% fixed and 70% variable? Provided below in Table 2 is a summary of the proposed 2008 water rate for the Navy. '~~ ~ < <~, y f.: / y ^ ~ ~ ~ " ^ ",j" ~ ; Table 2 J ^ '" ",,", <" ~ ~~ ~ ~ < /~ . ~ Proposed Navy WaterARate - To'Be Effec;,tive Niay 1, 20~8' , ' " ~ <:: ^ yY ", ,>; ", ,,-'': Utility,:'" .' Water Utility Fixed Charges Variable Charges Total ,;"~ ' 'Taige~':, 'Reyeol!e Ilr' , 'l','! ";-,, '} \, ...:'BtlJing;;i pnits ;l2] , PrO,pose,if 2tJO~J:: "'B,1lie I:eV;tls[3] . .. $468,000 1.091335 $1,559,335 873,280 $39,000/month $1.25/CCF [1] Note: There is some rounding of the relationship between fIXed and variable to produce whole dollar fixed charges [2] Source: Water Exhibit 3 [3 ] Water rates beyond 2008 are subject to the escalation clause or method of adjustment of the new contract. The City and Navy have targeted an effective date of May 1, 2008 for the new water rate and contract. This effective date is subject to acceptance of the final contract document by both parties. 1.6 Adjustments and Escalation of the Rates Through Time In developing a new water services contract, the City and Navy have agreed upon a term of ten (10) years. As a part of the negotiation process, the City and Navy discussed various methods to escalate the Navy's water rates through time. In a letter from Paul Anishanslin dated June 29, 2007, the Navy proposed a method for escalating costs. In very simplified terms, in that methodology the Navy's rates would be adjusted by the overall percentage adjustment applied to the City's other retail customers. The methodology calculates a percentage adjustment that is based upon a "baseline" of retail customers and consumption over the ten-year period and only the retail rates would be a variable in calculating the change. The City agreed that this methodology was acceptable for escalation of rates through time, in the absence of a comprehensive rate study which specifically allocates costs to the Navy using the final agreed upon allocation methodology. This report has assumed that the contract between the City and Navy will have a detailed example of this escalation methodology. 3 The 30%/70% refers to the design of the rate and is not intended to reflect the exact proportion of fixed and variable revenues that will actually be collected from the Navy over the life of the contract. The actual ratio of fixed to variable revenues is a function of the Navy's volumetric use, which can vary from year to year. L ~~ City of Bremerton r-1.J... '- Development of the Navy's Water Rates 6 1.7 Summary of the Water Rate Analysis This section of the report has discussed the key changes to the water cost of service methodology to equitably allocate costs to the Navy. From that methodology, the 2004 rate study was updated to reflect the mutually agreed upon approach. The result produced cost-based levels for the Navy that were escalated to 2008 cost levels. Finally, water rates for 2008 were designed. The above discussion is not intended to be comprehensive in nature concerning the overall water cost of service methodology, or more importantly, all of the discussions held between the parties. Rather, it is intended to simply summarize and document those key discussions that resulted in the development of the final methodology. li)~ City of Bremerton Development of the Navy's Water Rates 7 .. ... Section2^:i'< '." '.' .. .. ' .,.. . ~:~~. .Y". .: .A. .^ Devel~~I'Iie~t,:Q.f ,th~':.N~~Y'~/'Sewer ~,flates:<", .:j..... :-../ .'. <. ... :,S: ~,. ..... ..:.... .:.-. ..\ .:~'N . ':> .^,/., ~~.:.:~:~.' .. . :.,->:-:,.: --<,: .~ ...:.... ..<..",.. , 2.1 Introduction The 2004 comprehensive rate study conducted by Economic and Engineering Services, Inc. (EES)4 developed a comprehensive sewer rate study for the City of Bremerton. The 2004 report was intended to be the basis for establishing cost-based sewer rates for the Navy. The 2004 was used as the basis for the parties to establish a final agreed upon methodology to establish cost- based sewer rates for the Navy. The negotiation of the sewer cost of service methodology serves as the basis for a new 10-year contract for sewer service between the parties. 2.2 Overview of the Key Technical Issues In the process of negotiating a new contract with the Navy, there were a number of sewer cost allocation issues that were discussed and resolved between the parties. Specifically, these issues were as follows: . Navy contribution of payment in-lieu-oftaxes (PILOT) . Intergovernmental Payments . Equitable Allocation ofthe Collection Plant . Equitable Allocation of Sewer Laterals . Confirmation of past Navy capital contributions-in-aid of construction . Establishment of a "fair" rate of return methodology . Method to escalate 2004 final allocations to 2008 rate levels Provided below is a summary discussion of each of these technical points and the modification made to the 2004 sewer rate model. Many of these items are similar to the discussion provided for water, and when applicable, will be referenced as such. 2.3 Discussion of the Key Sewer Technical Issues The key technical issues identified above for the sewer utility were negotiated between the parties and mutually acceptable resolution was reached. The issue and final resolution of each is discussed below. NAVY CONTRIBUTION OF PAYMENT IN-LIEU-OF TAXES (PILOT) - Similar to the water utility, the City pays 8.5% PILOT on the sewer revenues received (Sewer Exhibit 2, Page 5 of7). In the 2004 rate analysis, the Navy's sewer revenues were excluded from this calculation. With the clarification and resolution of this issue for the water utility the Navy agreed that it would also apply to the sewer utility. Given that, the total amount of PILOT for the sewer utility was 4 Economic and Engineering Services, Inc. was acquired by HDR Engineering, Inc. (HDR) in the fall of 2004. L '"""""\~ City of Bremerton ~.... '- Development of the Navy's Sewer Rates 8 adjusted to reflect this modification. In the original analysis, the value shown for 2004 was $618,882. With the inclusion of the Navy's revenues in the calculation, the final modified amount is $771,553. INTERGOVERNMENTAL PAYMENTS - In the 2004 study, the intergovernmental payments were budgeted figures, but were calculated for 2005 and beyond. The parties agreed that the intergovernmental services would be calculated for 2004 using the approach used in the 2005 test period. This reduced the payments in 2004 from $266,065 to $239,246. EQUITABLE ALLOCATION OF THE SEWER COLLECTION PLANT - Collection plant assets are classified and allocated on Sewer Exhibit 7, Page 1 of 2. The Navy has a committed capacity of 19.5% of the City's wastewater treatment facilities. Given that, in the 2004 study the City directly assigned to the Navy 19.5% of the City's collection system. The Navy believed that this allocation over-stated the Navy's use of these facilities. The Navy proposed that the collection system assets be allocated to the Navy on the basis of their volumetric contribution. The City recognized and acknowledged the Navy's argument and agreed to this method of classification and allocation for the sewer collection plant. In the revised me,thodology, sewer collection plant in service is proportionally allocated to the Navy on the basis of their volumetric wastewater contributions (i.e. flows). EQUITABLE ALLOCA nON OF SEWER LATERALS - Sewer laterals are included in the same group of accounts as the sewer collection plant (Sewer Exhibit 7, Page 1 of 2). The Navy stated that they did not benefit from these laterals and should not be allocated any of these facilities. The City agreed with the Navy's position and the revised allocation method does not allocate any sewer laterals to the Navy (PSNS). CONFIRMATION OF PAST NAVY CAPITAL CONTRIBUTIONS-IN-Am-OF CONSTRUCTION - In the calculation of rate base (net plant investment), the traditional rate setting formula deducts any contributions-in-aid-of construction from the net plant in service value. Within the City's study, this item can be found on Exhibit 7, Page 2 of2. Similar to the water utility, a major concern of the Navy was the amount of contributions-in-aid-of construction credited to the Navy. For the sewer utility, the determination of contributions-in-aid-of construction is slightly more complicated since the Navy has made actual ("true") contributions-in-aid for this utility. However, in the end, similar to the findings associated with the water utility, the Navy concurred with the City's calculations and application of this data in the calculation of sewer rate base. ESTABLISHMENT OF A "FAIR" RATE OF'RETURN METHODOLOGY FOR THE NAVY - The rate of return discussion and methodology for the sewer utility tracks with the discussion provided for the water utility. The original 2004 rate study assumed a 9.0% rate of return for the Navy. With the agreed upon methodology for establi~hing a rate of return for the sewer utility, the final rate of return for the cost of service was 7.805%. The sewer utility has a slightly higher cost of debt compared to the water utility. The proposed formula for determining the Navy's "fair" rate of return for sewer is identical to the water utility. For clarification purposes it is as follows: Jill. City of Bremerton Development of the Navy's Sewer Rates 9 Cost of Debt + a Risk Premium of2.5% = Total Rate of Return The risk premium of2.5% will be fixed for the duration of the contract term. The rate of return will vary over time, but the only variable that will change is the cost of debt. In determining the final rate of return for rate setting purposes, there are conditional tests (e.g. use the greater of, etc.) to assure that the resulting rate of return from the formula does not create or lead to unintended consequences (e.g. rate of return less than the inside City customers, greater than wholesale, etc.). Specifically, the proposed definition for determining the rate of return for rate setting purposes is as follows: "The Rate of Return allowed under this contract shall be the City's cost of debt plus a risk premium of 2. 5%. The rate of return will be reviewed in any cost of service study prepared by the City for its utilities throughout the life of this contract. The rate of return shall also meet the following tests: 4) It shall be the greater of a. The City's cost of embedded debt plus 2.5%, or b. The City's current cost of borrowing plus 2.5% 5) It shall always be greater than or equal to the rate of return for in-City retail customers (owner customers), but less than or equal to the rate of return for outside city customers 6) It shall always be greater than or equal to zero The City's "cost of borrowing" shall be the numerical (simple) average of at least three recent debt issues (within the previous 90 days if possible) in the marketplace for municipal entities with similar terms and credit ratings. The City's "cost of embedded debt" shall be the weighted average of all non-subsidized outstanding debt for the combined utilities. These indexes shall be submitted to the Navy for review and comment prior to use in afuture COSA prepared by the City. " As noted previously, using this specific methodology the proposed overall rate of return for the water utility was 7.805%. Attached as part of the sewer cost of service exhibits is the calculation of the proposed rate of return for the sewer study. This proposed rate of return is 1.195% less than the City's original proposed rate of return. METHOD TO ESCALATE THE 2004 COSTS TO 2008 COST LEVELS - The sewer rate study conducted in 2004 allocated 2004 dollars (costs) to the Navy. The City adjusted their overall sewer rates by 10% in 2004, 14% in 2006, 4.2% in 2007 and on January 1, 2008 there was a 3.5% adjustment. Similar to the water utility, a methodology was developed to escalate the 2004 costs to 2008 levels. An important element in the selection of the final escalation methodology is that the City's escalated revenues plus the Navy's escalated revenues, when summed, tied to the overall revenue requirements ofthe City for each particular year. Given a methodology to escalate the costs, it was determined that the Navy's 2004 costs would be escalated by 8.0% for the 2006 adjustment, then by 4.2% for the 2007 adjustment and finally L ~"'":> City of Bremerton J:l...J... '\ Development of the Navy's Sewer Rates 10 by 3.5% for the 2008 adjustment. The effect of this series of escalations is to take the Navy's 2004 allocated costs and bring them up to 2008 levels for purposes of designing final sewer rates. An exhibit has been included within the sewer technical appendices documenting the escalation of the Navy's 2004 sewer costs to 2008 rate levels. 2.4 Summary of the Final Navy Sewer Cost of Service Based upon the specific issues noted above, the original 2004 sewer cost of service (C-O-S) analysis was updated for the final mutually agreed upon methodology to equitably allocate sewer costs to the Navy. Provided below in Table 3 is a summary of the allocation and cost escalation process. ;.. < ~ y , " ^ ' "'" ^ ^/ ." Table 3 ' ". ' ^ . '" " . y '>:.:~ ...,. y,^ ^ ~ j <} ~, ~ ^ . ; Summary of the finatNavy'Sewer Cost'of Service Analysis ^ ' < ~ ~ ~ ~ ^ .A~ y^ ) I)escripti~~ Rmsed, ' , . AUOC,ati9D $1,673,160 ~c",~,<<,,, ,,;>~i~,'" ,<' , 'J>lus,2006,2007 &,2008 , ~t~Adjusi~~Dts~" 16.81% ," 206s'',~ ~teI:eveIs $1,954,414 Sewer Cost of Service Given a targeted level of revenue, the final step of the process is to design rates to collect the targeted amount. 2.5 Development of the Proposed Sewer Rates The sewer rate calculated for the Navy has revised the relationship between fixed and variable costs. The City's existing sewer rate uses a relationship of 70% fixed and 30% variable. The Navy had proposed the reverse of this relationship. Given the debt load for the City's sewer utility the City wanted to maintain a strong fixed charge, but at the same time, understood the Navy's concerns with the existing fixed-variable relationship. The City aild Navy agreed that the final methodology should use a relationship of50% fixed and 50% variable.s Provided below in Table 4 is a summary of the proposed 2008 sewer rate for the Navy. i.< ^"<" ,....,.: ^ ..... -::: < ~ .., ^ ^, ~ ,q '" ^ 'w'; Table 4 '. ' , 'c ^ ^ ',' :' ",' Proposed Navy Sewer Rate - -':0 Be Effective'May 1, "2008 . w ^ ^ ;;. -< y < <:v. ~ '~l;i:r,' ~ /,,":, "'" ,II, "ti, ,'Ii' ty" ,','" , , ':);l:>;: "~l'arget':"",,, ';l;": ~V;~l!ue [1] ;:?:Billing q :"/IJDits [21 'i, "," - ,-_ "L'>+ "',," .,::Propo~~il200S, , ' ',' ,,"RaJe LevelsJ31 Water Utility Fixed Charges Variable Charges Total $976,800 977.614 $1,954,414 317,304 $81,400/month $3.08/CCF 5 The 500/0150% refers to the design of the rate and is not intended to reflect the exact proportion of fixed and variable revenues that will actually be collected from the Navy over the life of the contract. The actual ratio of fixed to variable revenues is a function ofthe Navy's volumetric wastewater flows, which can vary from year to year. L ~":) City of Bremerton I"U... '- Development of the Navy's Sewer Rates 11 [IJ Note: There is some rounding of the relationship betweenfrxed and variable to produce whole dollar fixed charges [2 J Source: Sewer Exhibit 3 [3 J Sewer rate beyond 2008 is subject to the escalation clause or method of adjustment of the new contract. The City and Navy have targeted an effective date of May 1, 2008 for the new sewer rate and contract. This effective date is subject to acceptance of the final contract document by both parties. 2.6 Adjustments and Escalation of the Rates Through Time In developing a new sewer services contract, the City and Navy have agreed upon a term of ten (10) years. As a part of the negotiation process, the City and Navy discussed various methods to escalate the Navy's water rates through time. The method to be used for sewer escalation is identical to the mutually acceptable method discussed for the water utility. This report has assumed that the contract between the City and Navy will have a detailed example of the escalation methodology to be applied to the Navy's sewer rates. 2.7 Summary of the Sewer Rate Analysis This section ofthe report has discussed the key changes to the sewer cost of service methodology to equitably allocate costs to the Navy. From that methodology, the 2004 rate study was updated to reflect the mutually agreed upon approach. The result produced costs for Navy sewer services that were escalated to 2008 cost levels. Finally, sewer rates for 2008 were designed. The above discussion is not intended to be comprehensive in nature concerning the overall sewer cost of service methodology, or more importantly, all ofthe discussions held between the parties. Rather, it is intended to simply summarize and document those key discussions that resulted in the development ofthe final methodology. @3. City of Bremerton Development of the Navy's Sewer Rates 12 ~, ~ :~ y ; y~ ~' ~ ~Y^, Y ~^y < ~t (~ d> ~' .Wat~r Tec;hnical Appendic.es < <0\ <",~ M; ~ ;; ''"' , < y X: Jf. );: , N. ~..... i; >^ , "i '.:..: ^.... ~ .... ^ ':~....: ^~..-:<-< ~/ / ;:: < ~ y -< ~ 'J:\ .... ^ <(. ~ / .... .; i ' CITY OF BREMERTON WATER DEPARTMENT EXHIBIT 1 ESCALATION FACTORS 2004 2005 2006 2007 2008 2009 2010 2011 Escalation Factors Revenues: Other Revenues 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Expenses: Power 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Labor (68% @ 3%, 12%@3%, 20%@26%-medical) 7.60% 7.60% 7.60% 7.60% 7.60% 7.60% 7.60% 7.60% Materials & Supplies 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Equipment 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Miscellaneous 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Depreciation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% New Debt Service: Long Term Debt Term in Years 20 20 20 20 20 20 20 20 Rate 5.5% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Short Term Debt (PWfF Loan) Term in Years 20 20 20 20 20 20 20 20 Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Interest Rates Interest Income 2.0% 2.0% 3.0% 3.0% 4.0% 4.0% 4.0% 4.0% Growth 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1 of 38 CITY OF BREMERTON Page 1 of7 WATER DEPARTMENT EXHIBIT2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2006 2006 2007 2008 2009 2010 2011 Basis of Classilicatlon SOURCES OF FUNDS Rate Revenues 401.34.343.4001 Water Sales Retail $3,604,669 $3,640,716 $3,677,123 $3,713,894 $3,751,033 $3,788,543 $3,826,429 $3,864,693 Rev Rpt @ 1 % growth 401.34.343.4002 PSNS Sales 1,004,416 1,027,848 1,038,126 1,048,507 1,058,993 1,069,582 1,080,278 1,091,081 As Other Revenue Total Rate Revenues $4,609,085 $4,668,563 $4,715,249 $4,762,402 $4,810,026 $4,858,126 $4,906,707 $4,955,774 Other Revenues Discretionary Revenue $123,420 $0 $0 $0 $0 $0 $0 $0 One lime 2004 401.3".341.4300 Billing Services 51,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Other Revenue 401.34.341.5000 General Gov!. (sale of mapslmarlne bill) 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Other Revenue 401.34.342.4007 Misc Inspections 5.000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Other Revenue 401.34.343.4002 Other Service Charges 150,000 151,500 153,015 154,545 156,091 157,652 159,228 160,820 As Other Revenue 401.34.343.4006 Water Connection lather Charges 150,000 151,500 153,015 154,545 156,091 157,652 159,228 160,820 As Growth 401.34.30115.8300 Plan Checking Fees 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Other Revenue 401.34362.5001 Park Facilities Rentals 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Flat 401.34.366.1000 Interfund Interest 1tl,250 0 0 0 0 0 0 0 One time 2004 401.34.361.1100 Investment Interest 50,000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 As Other Revenue 401.34.362.5002 L.T. Facilities Lease 1,17.61'3 149,092 150,583 152,089 153,610 155,146 156,697 158,264 As Other Revenue 401.34.362.6001 Housing Rentals - Utility 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 Flat 401.34366.2000 Interfund Rents 44,2GO 44,250 44,250 44,250 44,250 44,250 44,250 44,250 Flat 401.34.369.4000 Judgements and Settlements 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Flat 401.34369.11000 Other Misc. Revenue 4.000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 As Other Revenue Total Other Revenues $773,536 $638,967 $644,119 $649,323 $654,579 $659,887 $665,248 $670,663 Total Revenues $5,382,621 $5,307,531 $5,359,368 $5,411,725 $5,464,604 $5,518,013 $5,571,955 $5,626,438 APPLICATIONS OF FUNDS 401.34534.1034 Water Administration X.X.X.X.51001 Labor/Benefits $149,062 $160,391 $172,580 $185,697 $199,809 $214,995 $231,335 $248,916 As Labor X.X.x.X.50750 Reallocated Equipment Costs 0 0 0 0 0 0 0 0 As EqUipment X.X,X.X.S3110 Office & Operating Supplies 17.000 17,170 17,342 17,515 17,690 17,867 18,046 18,226 As MaVSupplies X.X.X.X.S3119 Office Supplies - Interfund 0 0 0 0 0 0 0 0 As MaVSupplies X.X.X.X.5J510 Small Tools & Equipment 5,000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment X.>\.X.X.53530 Computer Reiated Items 5,000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment X.X.X.X.54000 Reallocated Vehicle Costs 2.1,345 21,558 21,774 21,992 22,212 22,434 22,658 22,885 As Equipment X.X.X.X.54110 Prof. Services 10.000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Misc. X,X.X.X.54119 Professional Services - Interfund 365,028 368,678 372,365 376,089 379,850 383,648 387,485 391,359 As MiSC.-General Fund X.X.X.X.54210 Telecommunications 35.000 35,350 35,704 36,061 36,421 36,785 37,153 37,525 As Misc. X.X.X.X.54220 Postage 4,500 4,545 4,590 4,636 4,683 4,730 4,777 4,825 As Misc. X.X.X.X.54300 Travel 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Misc. X.X.X.X.54400 Advertising 500 505 510 515 520 526 531 536 As Misc. X.x.XX.54520 Equipment Rental 1.260 1,273 1,285 1,298 1,311 1,324 1,338 1,351 As Equipment X.X.x.X.5-4618 Insurance Premiums -Interfund 150,611 152,117 153,638 155,175 156,726 158,294 159,877 161,475 As Misc. - Risk Management X.X.X.X.54810 Equipment Repair 2,604 2,630 2,656 2,683 2,710 2,737 2,764 2,792 As Misc. XX.X.X.5-49tO Miscellaneous 14,000 14,140 14,281 14,424 14,568 14,714 14,861 15,010 As Misc. Total Administration $782,410 $800,072 $818,659 $838,236 $858,874 $880,650 $903,646 $927,951 2 of 38 CITY OF BREMERTON Page 2 of 7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Basis of Classification .534.7034 Customer Service X.x.XX.51001 Reallocated Labor Costs $240.'380 $258,972 $278,654 $299,831 $322,618 $347,137 $373,520 $401,907 As Labor X.X.X.X.53110 Office & Operating Supplies 10.000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Mat/Supplies X.X.X.X.5353510 Small Tools and Equipment 500 505 510 515 520 526 531 536 As Equipment X.X.X.X.53530 Computer Related Items 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Equipment X.X.X.X.54000 Reallocated Vehicle Costs 4.753 4,801 4,849 4,897 4,946 4,995 5,045 5,096 As Equipment X.X.X.X.54110 Professional Services (PSE billing) 22,000 22,220 22,442 22,667 22,893 23,122 23,353 23,587 As Mise, X,X.X.X.54119 Professional Services Interfund 0 0 0 0 0 0 0 0 As Misc. x x X.X.5421 0 Telecommunication 0 0 0 0 0 0 0 0 As Misc. X.XXX.54220 Postage 0 0 0 0 0 0 0 0 As Mise, X.XXX.54300 Travel 0 0 0 0 0 0 0 0 As Misc. X.X.X.X.S4520 Equipment Rental 82(; 833 842 850 858 867 876 885 As Equipment X.X.X.X.54810 Equipment Repair 0 0 0 0 0 0 0 0 As Misc. X.x.X.X54910 Miscellaneous 0 0 0 0 0 0 0 0 As Misc. Total Cust. Service & Marketing $280,258 $298,945 $319,027 $340,608 $363,803 $388,734 $415,533 $444,340 Total Water Administration $1,062,668 $1,099,018 $1,137,686 $1,178,844 $1,222,677 $1,269,384 $1,319,179 $1,372,291 Engineering .53480:37 Operations X.X.X.X.51001 Reallocated Labor Costs $215,482 $231,859 $249,480 $268,440 $288,842 $310,794 $334,414 $359,830 As Labor X.XXX.53120 Office & Operating Supplies 2,ODO 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Mat/Supplies X,X.X.X.5351O Small Tools & Equipment 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Equipment X.X,X,X.5J530 Computer Related Items 9,000 9,090 9,181 9,273 9,365 9,459 9,554 9,649 As Equipment xxx X.54000 Reallocated Vehicle Costs 14.665 14,812 14,960 15,109 15,260 15,413 15,567 15,723 As Equipment XXX,X.S4110 Prof. Services - External 0 0 0 0 0 0 0 0 As Misc. X.X.X.X.54210 Telecommunications 600 606 612 618 624 631 637 643 As Misc. X,X,XXS4300 Travel 850 859 867 876 885 893 902 911 As Misc. X.X.X.X.54220 Postage 100 101 102 103 104 105 106 107 As Misc. X.X.X.xS4119 Advertising 0 0 0 0 0 0 0 0 As Misc. X.X X,X 5452G Rents - Equipment 1.800 1,818 1,836 1,855 1,873 1,892 1,911 1,930 As Equipment X.XXX.5810 Equipment Repair 1,000 1,076 1,158 1,246 1,340 1,442 1,552 1,670 As Labor X.X.X.X.54910 Miscellaneous 1.000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. Total Engineering Operations $247,497 $264,260 $282,276 $301,641 $322,457 $344,833 $368,889 $394,752 3 of 38 CITY OF BREMERTON Page 3 01 7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Basis 01 Classification 401.31 Water Resource Manager XX.534.5031 Maintenance xxx X.50700 Reallocated Labor Cost $204,533 $220,078 $236,803 $254,800 $274,165 $295,002 $317,422 $341,546 As Labor XXXX.53110 Office & Operating Supplies 35,000 35,350 35,704 36,061 36,421 36,785 37,153 37,525 As MaUSupplies X.X.XXS3121 Utility Inventory 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As MaUSupplies X.XXX-S3ll9 Operating Supp, -Interfund 0 0 0 0 0 0 0 0 As Mat/Supplies X.X,XXS3219 Fuel Consumed - IFD 0 0 0 0 0 0 0 0 As Misc, XXXX.53510 Small Tools & Equipment 7,000 7,070 7,141 7,212 7,284 7,357 7,431 7,505 As Equipment XXXX.5353Q Computer Related Items 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Equipment x x xx 53520 Small Equipment & Furniture 0 0 0 0 0 0 0 0 As Equipment XX.XX,S4000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment XXX,X.S4ll0 Prolessional Services - External 25,000 25,250 25,503 25,758 26,015 26,275 26,538 26,803 As Misc. X.X.x.X.54220 Postage 0 0 0 0 0 0 0 0 As Mat/Supplies X.X.XXS4520 Equipment 5,000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment XXX.X.54740 Garbage 0 0 0 0 0 O' 0 0 As Misc. X.X.x.X.54B10 Equipment Repair 10,000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Equipment X.XXX 54319 Equipment Repair - Interfund () 0 0 0 0 0 0 0 As Equipment XXX.x.54820 Other Improvements 0 0 0 0 0 0 0 0 As Misc. X.XXX.54830 Structures & Grounds Repair 300000 303,000 306,030 309,090 312,181 315,303 318,456 321,641 As Misc. lor Reservoirs XXX.x.54910 Miscellaneous 0 0 0 0 0 0 0 0 As Misc. Total Maintenance $589,033 $608,423 $629,032 $650,951 $674,278 $699,115 $725,576 $753,782 XX.534.7031 Customer Service xxx.x.soroo Reallocated Labor Costs $17.1~9 $18,431 $19,832 $21,339 $22,960 $24,705 $26,583 $28,603 As Labor x x X.X.5312Q Office & Operating Supplies 4,000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 As Mat/Supplies X,X.X.X.53121 Utility Inventory 0 0 0 0 0 0 0 0 As Mat/Supplies XXXX53510 Small Tools & Equipment 0 0 0 0 0 0 0 0 As Equipment X.XXX.5400Q Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment X.X,X.X.S4ll0 Prol. Services External 0 0 0 0 0 0 0 0 As Misc. X.X.XX.54220 Postage 0 0 0 0 0 0 0 0 As Mat/Supplies X.XXX.54300 Travel 0 0 0 0 0 0 0 0 As Misc. XXX,X.54400 Advertising 0 0 0 0 0 0 0 0 As Misc. XXX.X.54520 Rents - Equipment 0 0 0 0 0 0 0 0 As Misc. X,X.X.X.5491Q Miscellaneous 4.000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 As Misc. Total Cust. Service $25,129 $26,511 $27,992 $29,581 $31,285 $33,114 $35,075 $37,180 4 of 38 CITY OF BREMERTON Page 4 of 7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Basis of Classification XX.534.8031 Operations X.X.X.X.51001 Reallocated Labor Costs $485.448 $522,342 $562,040 $604,755 $650,716 $700,171 $753,384 $810,641 As Labor X.X.X.X.53110 Office & Operating Supplies 70.000 70,700 71,407 72,121 72,842 73,571 74,306 75,049 As Mat/Supplies X.X.X.X.53121 Utility Inventory 0 0 0 0 0 0 0 0 As Mat/Supplies X.X,X,X.53210 Vehicle Fuel 0 0 0 0 0 0 0 0 As Equipment X.X.X.X.53510 Small Tools & Equipment 50.000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 As Equipment X.X.X.X.53530 Computer Related Items ~,OOO 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Equipment X.X.X.X.5400Q Reallocated Vehicle Costs 51.847 52,365 52,889 53,418 53,952 54,492 55,037 55,587 As Equipment X.X.X.X.54110 Professional Services - External 155 000 75,000 75,750 76,508 77,273 78,045 78,826 79,614 As Misc. X.X.X.X.54210 Telephone 8,000 8,080 8,161 8,242 8,325 8,408 8,492 8,577 As Misc. X,X.x.X.54220 Postage 500 505 510 515 520 526 531 536 As Mat/Supplies X.X.X.X.54300 Travel 2,~;OO 2,525 2,550 2,576 2,602 2,628 2,654 2,680 As Misc. X.X.X.X.54400 Advertising 0 0 0 0 0 0 0 0 As Misc. X.X.X.X.54520 Equipment 0 0 0 0 0 0 0 0 As Equipment X.X.X,X 54710 Natural Gas 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. x X.X.X.54720 Electricity 2T5,OOO 283,250 291,748 300,500 309,515 318,800 328,364 338,215 As Power X.X.X,X.54730 WaterlSewerlStormwater 400 404 408 412 416 420 425 429 As Misc. xxx X.54810 Equipment Repair 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Equipment X.X X.X.54820 Repairs - Other Improvements 0 0 0 0 0 0 0 0 As Misc. X,X,X.X.54910 Miscellaneous 20.000 20,200 20,402 20,606 20,812 21,020 21,230 21,443 As Misc. Total Operations $1,123,695 $1,090,922 $1,141,970 $1,196,320 $1,254,207 $1,315,886 $1,381,632 $1,451,739 Total Water Resources $1,737,857 $1,725,855 $1,798,995 $1,876,852 $1,959,769 $2,048,115 $2,142,284 $2,242,702 Wastewater Manager 534.9032 Other Operations - Bioso/ids XXXX,S1001 Reallocated Labor Costs $69.208 $74,468 $80,127 $86,217 $92,770 $99,820 $107,406 $115,569 As Labor X.X.X.X53110 Office & Operating Supplies 58,000 58,580 59,166 59,757 60,355 60,959 61,568 62,184 As Mat/Supplies X.X.X.X53121 Utility Inventory 0 0 0 0 0 0 0 0 As Mat/Supplies X.X.X.X.53510 Small Tools & Equipment 0 0 0 0 0 0 0 0 As Equipment X.X.X.X.54000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment XX.XX.54110 Prof. Services - External 0 0 0 0 0 0 0 0 As Misc. X.X.X.X.54720 Electricity 9.500 9,785 10,079 10,381 10,692 11,013 11,343 11,684 As Power X.XXX.5810 Equipment Repair 0 0 0 0 0 0 0 0 As Misc. X.XXX.54910 Miscellaneous 0 0 0 0 0 0 0 0 As Misc. Total Wastewater Manager $136,708 $142,833 $149,372 $156,355 $163,817 $171,792 $180,318 $189,437 5 of 38 CITY OF BREMERTON Page 5 of7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Basis of Classification 401.33. Utility Operations X.X.534.5033 Maintenance X.X.X.X.510Q1 Reallocated labor Cost $1.017.970 $1,095,336 $1,178,581 $1,268,153 $1,364,533 $1,468,238 $1,579,824 $1,699,890 As labor x x.x.x 53110 Office & Operating Supplies 100.000 101,000 102,010 103,030 1 04,060 105,101 106,152 107,214 As Mat/Supplies X.X.X.X 53119 Office Supplies - Interfund 0 0 0 0 0 0 0 0 As Mat/Supplies x.X,X.X.53121 Utility Inventory 10,000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Mat/Supplies X.X.x.X.S3420 Purchases for Inventory 0 0 0 0 0 0 0 0 As Mat/Supplies XXX.X.53510 Small Tools & Equipment 10,000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Equipment XX.X.X.5353Q Computer Related Items 5.000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment X,X.X,X.540QO Reallocated Vehicle Costs 171,132 172,843 174,572 176,317 178,081 179,861 181,660 183,477 As Equipment X.X,X.X.54110 Professional Services - External 3.000 3,030 3,060 3,091 3,122 3,153 3,185 3,216 As Misc. X,X.X.X.S4210 Telecommunications 1.500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Misc. x x x X.54220 Postage 500 505 510 515 520 526 531 536 As Mat/Supplies x.X.X.X.54300 Travel 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. X.X.X.X.S4400 Advertising 2.000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. X.x.X.x.S4520 Rents - Equipment 4,500 4,545 4,590 4,636 4,683 4,730 4,777 4,825 As Misc. X.X.X.X.54710 Naturai Gas 0 0 0 0 0 0 0 o As Misc. X.XXX.54720 Electricity - Olympus Drive Only 20.000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 As Power X.X.X.X.54740 Garbage 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. x x X.X.5481O Equipment Repair 8,000 8,080 8,161 8,242 8,325 8,408 8,492 8,577 As Equipment x X,X x 54830 Structures & Grounds 5.000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Misc. x X.x.X.54910 Miscelianeous 35.000 35,350 35,704 36,061 36,421 36,785 37,153 37,525 As Misc. X.XXX.54919 Miscellaneous -IFD 0 0 0 0 0 0 0 o As Misc. Total Utility Operations $1,397,602 $1,479,164 $1,566,660 $1,660,537 $1,761,278 $1,869,400 $1,985,461 $2,110,062 .401.39 Forestry .534.5039 Maintenance X.XXX.5100l Reallocated labor Costs $26 658 $28,684 $30,864 $33,210 $35,734 $38,449 $41,371 $44,516 As labor X.X.X.X.53110 Office & Operating Supplies 16000 16,160 16,322 16,485 16,650 16,816 16,984 17,154 As Mat/Supplies XXX.X.53121 Utility Inventory 100 101 102 103 104 105 106 107 As Mat/Supplies x x X.X.S351Q Small Tools & Equipment 500 505 510 515 520 526 531 536 As Equipment X.X.X.X.54000 Reallocated Vehicle Costs 32.127 32,448 32,773 33,100 33,431 33,766 34,103 34,444 As Equipment XXX,X.5411Q Professional Services '10,000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Misc. X,X,X.X.5422Q Postage 0 0 0 0 0 0 0 0 As Mat/Supplies X.XXX.54810 Rents - Equipment 7,500 7,575 7,651 7,727 7,805 7,883 7,961 8,041 As Equipment X.X.X.X.548JO Structures & Ground Repair 2.500 2,525 2,550 2,576 2,602 2,628 2,654 2,680 As Misc. X.x.X.X.5491O Equipment Repair 100 101 102 103 104 105 106 107 As Misc. Total Maintenance $95,485 $98,199 $101,074 $104,122 $107,355 $110,787 $114,433 $118,308 6 of 38 CITY OF BREMERTON Page 6 of 7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected Z004 2005 Z006 2007 Z008 2009 2010 2011 Basis of Classification .534.9039 Other Operations X.X.X.X.51Q01 Reallocated Labor Cost $274,683 $295,559 $318,021 $342,191 $368,198 $396,181 $426,290 $458,688 As Labor X.X.X.X.5l0BO Overtime Pay (Cops Watershed Patrol) 40,000 43,040 46,311 49,831 53,618 57,693 62,077 66.795 As Labor X,X.X,X.5311Q Office & Operating Supplies 25.000 25,250 25,503 25,758 26,015 26,275 26,538 26,803 As MaUSupplies X.X.X.X.53121 Utility Inventory 100 101 102 103 104 105 106 107 As Mat/Supplies X.X.X.X.53119 Operating Suppiies - Interfund 0 0 0 0 0 0 0 0 As Mat/Suppiies X.X.X.X.53210 Vehicle Fuel 0 0 0 0 0 0 0 0 As Misc. x.x.X.X.5351Q Small Tools & Equipment 2.000 2,020 2,040 2.061 2,081 2,102 2,123 2,144 As Equipment X.X.X.X.53530 Computer Related Items 500 505 510 515 520 526 531 536 As Equipment X,X,X.X.54000 Reallocated Vehicle Costs 51.257 51,770 52,287 52,810 53,338 53,872 54,410 54,954 As Equipment X.X,X.X.54110 Professional Services - External 65.500 30,000 30,300 30,603 30,909 31,218 31,530 31,846 As Misc.lbiosolids mgmt, misc X,X.X.X.54210 Telecommunications SOD 505 510 515 520 526 531 536 As Misc. x.x.x.x.54220 Postage 500 505 510 515 520 526 531 536 As Mat/Supplies X.X.X.X.54300 Travel 1.000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. X.X,X.X.S4400 Advertis ing 100 101 102 103 104 105 106 107 As Misc. X.X.X.X.54520 Equipment 5.000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment X.X.x.X.54710 Natural Gas 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Misc. X.X.X.X.54720 E iectricity 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 As Power X.X.X.X.54740 Garbage 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. X.X.X.X.54810 Equipment Repair 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. X.X.X.X.54820 Other Improvements 1.000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. XXX.X.54910 Miscellaneous 20.000 20,200 20,402 20,606 20,812 21,020 21,230 21,443 As Misc. Total Other Operations $494,640 $484,280 $511,553 $540,800 $572,168 $605,820 $641,927 $680,674 Total Forestry $590,125 $582,480 $612,628 $644,922 $679,524 $716,607 $756,359 $798,981 Total O&M Expense $5,172,457 $5,293,609 $5,547,615 $5,819,151 $6,109,522 $6,420,131 $6,752,491 $7,108,225 Taxes/Transfer Payments X.X.X.X 55100 Intergovern Service & Tax .$2Al~?~~,$234l8? $237,130 $239,501 $241,896 $244,315 $246,758 $249,226 5.029% of water sales X.X.X.X.55409 Payment In-Lieu of Taxes '.519;27~ .'W: . 51{?J!l;2~; i,511 ,2g~f i* SQ)3,?Q4 . .i' .5l)~;tl'$2J,\t:t.. 1: 49~;9If-F', 1'); !/Qb!>70 "ft ~1i6,:t~f .8.5% of Retail Rate Rev + Timber UUD Payment (12%) 120.000 0 0 0 0 0 0 0 One Time ( UUD Payment (City Ownership) 120.000 0 0 0 0 0 0 0 One Time xx X.X553QO External Taxes & Assessments 4.000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 DOH Connection Surcharge Total TaxeslTransfer Payments $995,063 $754,610 $752,426 $750,305 $748,248 $746,Z56 $752,828 $759,467 Total O&M Plus Taxes $6,167,520 $6,048,219 $6,300,042 $6,569,457 $6,857,770 $7,166,387 $7,505,319 $7,867,691 Debt Service Existing PWTF 36" Water Main Garst $190.658 $189,000 $187,342 $185,684 $184.026 $182,368 $180.710 $179,053 Debt Schedule Existing DWSRF - Corrosion Clrl/Reserv #4 $84.525 $83,463 $8U49 $79,236 $77.123 $75,010 $'72.897 $70,784 Est. Repmt Sched. Existing DWSRF - Casad Dam Seismic Intake Tower 26,721 32,169 31,624 31,078 30,533 29.988 29,443 28,897 Est. Repmt Sched. Existing DWSRF - East West Flow Imprvmts 2.060 2,025 1,990 1,955 1.920 1,885 1.850 1,816 Est. Repmt Sched. Existing DWSRF - PS #4 Upgrade 0 (11,568 61,658 61,668 61,668 61,668 61,668 61,668 Est. Repmt Sched. Existing DWSRF - Casad Dam Valve 0 7,426 '1.42.6 7,42.6 7,426 7,425 7.426 7,42.6 Est. Repmt Sched. Existing DWSRF - NAD Park Bank Stabilization 0 29,lO5 29,70S 29,70S 2.9,'10S 29,70S 29,705 29,'70S Est. Repmt Sched. New DWSRF - On-site Chlorination 0 S,883 f.),883 5,883 5,883 5,883 5.883 S,883 Existing Other - Capital Lease Pitney Bow 5,'186 5.186 5.186 5,186 5,186 5.186 5,186 5,186 New DWSRF Loan 0 0 0 0 0 0 0 0 Subtotal DWSRF $118,492 $227,526 $224,832 $222,138 $219,445 $216,752 $214,059 $211,366 Calculated 7 of 38 CITY OF BREMERTON Page 7 of 7 WATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Basis of Classification New Revenue Bond $0 $0 $0 $0 $0 $0 $0 $0 Total Debt Service $309,150 $416,526 $412,174 $407,822 $403,471 $399,120 $394,769 $390,419 Net Revenue Available for Capital Funding ($1,094,049) ($1,157,214) ($1,352,847) ($1,565,554) ($1,796,636) ($2,047,494) ($2,328,132) ($2,631,673) Capital Improvements Net CIP From Rates $500,000 $600,000 $700,000 $800,000 $1,000,000 $1,030,000 $1,060,900 $1,092,727 From Capital Plan Cash Working Capital $0 $0 $0 $0 $0 $0 $0 $0 TOTAL NET REV. REQUIREMENT $6,976,670 $7,064,745 $7,412,215 $7,777,278 $8,261,241 $8,595,507 $8,960,988 $9,350,837 Balance/(Deficiency} of Funds ($1,594,049) ($1,757,214) ($2,052,847) ($2,365,554) ($2,796,636) ($3,077,494) ($3,389,032) ($3,724,400) Plus: Additional Taxes w/Rate Increase ($249,400) ($274,929) ($321,182) ($370,108) ($437,554) ($481,496) ($530,238) ($582,709) Total Balance/(Deficiency) of Funds ($1,843,449) ($2,032,143) ($2,374,029) ($2,735,661) ($3,234,190) ($3,558,990) ($3,919,271) ($4,307,108) Totallnc.l(Decrease) as a % of Rates 40.0% 43.5% 50.3% 57.4% 67.2% 73.3% 79.9% 86.9% Debt Service Coverage Ratio - Water Utility - All Debt Before Rate Increase 5.11 3.07 2.36 1.60 0.78 0.00 0.00 0.00 After Rate Increase 11.07 7.95 8.12 8.31 8.79 8.80 9.10 9.42 Debt Service Coverage Ratio - Water Utility - Revenue Bond Debt Before Rate Increase 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 After Rate Increase 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Debt Service Coverage Ratio - Combined Utility Before Rate Increase 1.28 1.07 0.99 0.90 1.71 1.31 1.08 0.86 After Rate Increase 1.54 1.97 2.17 2.22 4.75 4.23 4.21 4.20 Debt service coverage = 1.30 Gross revenue of the system = all the eamings and revenue received by the system from any source including sale offorest products, except; general ad valorem taxes, grants, refunded bond escrow acct eamings, gifts to system for capital purposes, proceeds from sale of city property, proceeds from city or system obligations Operating and Maintenance expenses = all reasonable expenses incurred by the City including insurance premiums. state imposed taxes payment to another agency for treatment or sewage disposal, excluding depreciation, city imposed utility taxes or PILO T . 8 of 38 City of Bremerton - Water Department SUMMARY OF SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 SOURCES OF FUNDS Water Sales $3,604,669 $3,640,716 $3,677,123 $3,713,894 $3,751,033 $3,788,543 $3,826,429 $3,864,693 Navy (PSNS) Sales 1,004,416 1,027,848 1,038,126 1,048,507 1,058,993 1,069,582 1,080,278 1,091,081 Timber Sales 0 0 0 0 0 0 0 0 Other Revenue 773,536 638,967 644,119 649,323 654,579 659,887 665,248 670,663 Total Sources of Funds $5,382,621 $5,307,531 $5,359,368 $5,411,725 $5,464,604 $5,518,013 $5,571,955 $5,626,438 APPLICATIONS OF FUNDS O&M Expenses $6,167,520 $6,048,219 $6,300,042 $6,569,457 $6,857,770 $7,166,387 $7,505,319 $7,867,691 Capital Outlays from Rates 500,000 600,000 700,000 800,000 1,000,000 1,030,000 1,060,900 1,092,727 Debt Service 309,150 416,526 412,174 407,822 403,471 399,120 394,769 390,419 TOTAL NET REVENUE REQUIREMENT $6,976,670 $7,064,745 $7,412,215 $7,777,278 $8,261,241 $8,595,507 $8,960,988 $9,350,837 BALANCE/DEFICIENCY OF FUNDS ($1,594,049) ($1,757,214) ($2,052,847) ($2,365,554) ($2,796,636) ($3,077,494) ($3,389,032) ($3,724,400) Plus: Add'l Taxes w/Rate Increase ($249,400) ($274,929) ($321,182) ($370,108) ($437,554) ($481,496) ($530,238) ($582,709) TOTAL BALANCE OF FUNDS ($1,843,449) ($2,032,143) ($2,374,029) ($2,735,661) ($3,234,190) ($3,558,990) ($3,919,271) ($4,307,108) RATE ADJUSTMENT REQUIRED 40.0% 43.5% 50.3% 57.4% 67.2% 73.3% 79.9% 86.9% PROPOSED RATE ADJUSTMENT 30.0% 15.0% 10.0% 3.0% 3.0% 3.0% 3.0% 3.0% ADDITIONAL REVENUE WITH RATE ADJUSTMENT $691,363 $2,310,939 $3,038,978 . $3,304,321 $3,581,786 $3,871,875 $4,175,113 $4,492,044 BALANCE/DEFICIENCY OF FUNDS ($1,152,087) $278,796 $664,949 $568,660 $347,596 $312,886 $255,843 $184,935 ADDITIONAL RATE ADJUSTMENT REQUIRED 25.00% .5.97% -14.10% -11.94% . -7.23% -6.44% -5.21% -3.73% Current Residential Rate (10ccf, 3/4" meter) $13.01 $16.91 $19.45 $21.40 $22.04 $22.70 $23.38 $24.08 Rate Impact with Increase $3.90 $2.54 $1.95 $0.64 $0.66 $0.68 $0.70 $0.72 Total Monthly Rate with Increase $16.91 $19.45 $21.40 $22.04 $22.70 $23.38 $24.08 $24.80 Working Capital Beginning Balance $700,000 $0 $278,796 $943,745 $1,512,405 $1,860,000 $2,172,886 $2,428,729 Plus: Additional 0 278,796 664,949 568,660 347,596 312,886 255,843 184,935 Less: Uses (1,152,087) 0 0 0 0 0 0 0 Ending Working Capital ($452,087) $278,796 $943,745 $1,512,405 $1,860,000 $2,172,886 $2,428,729 $2,613,664 Minimum Target 15% O&M plus Taxes $925,128 $907,233 $945,006 $985,418 $1,028,666 $1,074,958 $1,125,798 $1,180,154 Capital Fund Ending Balance $728,751 $1,251,751 $1,703,751 $1,296,751 $916,751 $232,751 $875,651 $800,378 Total Working Capital and Capital Fund $276,664 $1,530,547 $2,647,496 $2,809,156 $2,776,751 $2,405,637 $3,304,380 $3,414,042 Debt Service Coverage Ratio - Water Utility - All Debt Before Rate Increase 5.11 3.07 2.36 1.60 0.78 0.00 0.00 0.00 After Rate Increase 7.34 8.62 9.74 9.70 9.65 9.58 9.75 9.89 9 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 1 of 2 EXHIBIT 2A CAPITAL FUNDING ANALYSIS SUMMARY 2004 2005 2006 2007 2008 2009 2010 2011 Total Beginning Balance $0 $728,751 $1,251,751 $1,703,751 $1,296,751 $916,751 $232,751 $875,651 Total Capital Projects Water Main Replacement Program 100,000 275,000 275,000 300,000 300,000 300,000 300,000 300,000 $2,150,000 Miscellaneous Supply Improvements 75,000 75,000 100,000 100,000 100,000 100,000 100,000 100,000 750,000 Anderson Creek Wellfield - Eastside Flow & Pressure 600,000 400,000 0 A, 0 0 0 0 1,000,000 Water System Security Improvements 50,000 50,000 0 0 0 0 0 0 100,000 Annual Acquisition of Replacment Meters 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 375,000 Road Maintenance and Abandonment Plan (RMAP) 25,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 165,000 Pump Station Reconstruction - 2004 PS#4 Westhills 31,500 1,028,000 0 0 0 0 0 0 1,059,500 Stabilization Projects 50,000 460,000 0 0 0 0 0 0 510,000 Misc Equipment Dept 33 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 80,000 Seismic Upgrades 585,000 720,000 200,000 0 0 0 0 0 1,505,000 Source and Pump Station Flow Meters 0 30,000 0 0 0 0 0 0 30,000 Tracy ton Water District Improvements Phase II 725,000 0 0 0 0 0 0 0 725,000 West 580 PS#2A, 12" Trans. Main 1,350.000 0 0 0 0 0 0 0 1,350,000 Anderson Creek PS#2 and Well 7&8 85,000 0 0 0 0 0 0 0 85,000 Oyster Bay Facility, yard, roof, tile replacement 0 54,000 0 0 0 0 0 0 54,000 West 650 12" OM, Reservoir #23, 12" OM 200,000 0 0 0 0 0 0 0 200,000 HB Valve 100,000 0 0 0 0 0 0 0 100,000 Design and Construction of Ultraviolet Treatment 0 0 300,000 1,000,000 1,000,000 0 0 0 2,300,000 12" Dist Water Main - Shorewood Drive to Res 21 0 330,000 0 0 0 0 0 0 330,000 12" Dist Water Main - Pine to Flagstone 0 0 180,000 0 0 0 0 0 180,000 3000 Road Culvert Replacement 0 20,000 0 0 0 0 0 0 20,000 24" Pipe on C Street from Oyster Bay to National Avenue 0 0 0 0 250,000 1,250,000 0 0 1,500,000 Twin Lakes Diversion Improvement 0 75,000 0 0 0 0 0 0 75,000 Cover for Dewatering Facility 0 0 0 0 0 307,000 0 0 307,000 Loop Main on West Kitsap Lake Road 0 0 380,000 0 0 0 0 0 380,000 Loop Main on Lakehurst Drive & PSE 0 0 0 81,000 0 0 0 0 81,000 Replace Well 18 Pump and Motor 0 0 63,000 0 0 0 0 0 63,000 Bypass Tunnel Below McKenna Falls Weir 0 0 0 50,000 200,000 0 0 0 250,000 Booster Station 3 (Lafayette) & PRV Upgrade 0 0 70,000 0 0 0 0 0 70,000 490 Zone Extension on Sylvan 0 0 0 486,000 0 0 0 0 486,000 12" Main on McWilliams Rd. From Me Williams Ct. to Pine Rd. 0 0 0 171,000 0 0 0 0 171,000 E. 18th St. Loop 0 0 0 113,000 0 0 0 0 113,000 36" Main Davis Street Connector 0 0 0 126,000 0 0 0 0 126,000 Gold Mountain Gold Course Irrigation 0 0 0 0 650,000 0 0 0 650,000 Storage Improvements W440 & 398 Zones 0 0 0 0 0 0 416,000 1,000,000 1,416,000 Reservoir No. 14 Demolition 0 0 0 0 0 0 341,000 0 341,000 Re-Drill Well #9 0 0 0 0 0 0 0 332,000 332,000 Well #9 Chlorination &'Telemetry 0 0 0 0 0 0 0 166,000 166,000 Manette Bridge Water Main 2004 Isolation Valve 136,000 0 0 0 0 0 0 0 136,000 12" Dist Water Main - 13th St & High & Ohio 0 0 0 0 0 640,000 0 0 640,000 Pine Road - Me Williams to Well 21 12" Water Main 0 0 0 0 0 137,000 0 0 137,000 398-490 Zone Conversion & PRV 0 0 0 0 0 0 281,000 0 281,000 Marine Drive from Cedar Dr. North 8" Water Main 0 0 0 0 0 0 0 290,000 290,000 Other Unscheduled Projects 0 0 0 0 0 0 0 0 0 Total Project Costs $4,147,500 $3,597,000 $1,648,000 $2,507,000 $2,580,000 $2,814,000 $1,518,000 $2,268,000 $21,079,500 10 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 2 of 2 EXHIBIT 2A CAPITAL FUNDING ANALYSIS SUMMARY 2004 2005 2006 2007 2008 2009 2010 2011 Total Less: Funding Sources Annual Rate Funded Capital S500, ADO $600,000 $700,000 $800,000 ,$1,000,000 $1,030,000 $1,060,900 $1,092,727 $6,783,627 System Development Charges 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 800,000 Timber Sales 1,500,000 1.400,000 1,300,000 1,200,000 1,100,000 1,000,000 1,000,000 1,000,000 9,500,000 Sale of Assets 0 0 0 0 0 0 0 0 0 Grants 800,000 0 0 0 0 0 0 0 800,000 State Loan. DWSRF 1,960,000 2,020,000 0 0 0 0 0 0 3,980,000 Intertund Loan Payment - Pendergast 16,251 0 0 0 0 0 0 0 16,251 Revenue Bonds 0 0 0 0 0 0 0 0 0 Total Funding Sources $4,876,251 $4,120,000 $2,100,000 $2,100,000 $2,200,000 $2,130,000 $2,160,900 $2,192,727 $21,879,878 Additional Capital Funding $0 $0 $0 $0 $0 $0 $0 $0 Endin!! Capital Reserves $728,751 $1,251,751 $1,703,751 $1,296,751 $916,751 $232,751 $875,651 $800,378 Target Funding; Annual Average Capital or $225,000 $420,000 $445,000 $470,000 $470,000 $470,000 $470,000 $470,000 1,5% ofOr/ginal Plant Value $784,465 11 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 1 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects Water Main Replacement Program 100,000 275,000 275,000 300,000 300,000 300,000 300,000 300,000 2,150,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $100,000 $275,000 $275,000 $300,000 $300,000 $300,000 $300,000 $300,000 $2,150,000 Miscellaneous Supply Improvements 75,000 75,000 100,000 100,000 100,000 100,000 100,000 100,000 750,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $75,000 $75,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $750,000 Anderson Creek Wellfield - Eastside Flow & Pressure 600,000 400,000 0 0 0 1,000,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 500,000 500,000 0 0 0 0 0 0 1,000,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $500,000 $500,000 $0 $0 $0 $0 $0 $0 $1,000,000 Internally Funded $100,000 ($100,000) $0 $0 $0 $0 $0 $0 $0 Water System Security Improvements 50,000 50,000 0 0 0 0 0 0 100,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $50,000 $50,000 $0 $0 $0 $0 $0 $0 $100,000 Annual Acquisition of Replacment Meters 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 375,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 0 Internally Funded $25,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 375,000 Road Maintenance and Abandonment Plan (RMAP) 25,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 165,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 0 Internally Funded $25,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 165,000 12 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 2 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects Pump Station Reconstruction - 2004 PS#4 Westhills 31,500 1,028,000 0 0 0 0 0 0 1,059,500 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 20,000 1,040,000 0 0 0 0 0 0 1,060,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $20,000 $1,040,000 $0 $0 $0 $0 $0 $0 1,060,000 Internally Funded $11,500 ($12,000) $0 $0 $0 $0 $0 $0 (500) Stabilization Projects 50,000 460,000 0 0 0 0 0 0 510,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 30,000 480,000 0 0 0 0 0 0 510,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $30,000 $480,000 $0 $0 $0 $0 $0 $0 510,000 Internally Funded $20,000 ($20,000) $0 $0 $0 $0 $0 $0 0 Misc Equipment Dept 33 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 80,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $80,000 Seismic Upgrades 585,000 720,000 200,000 0 0 0 0 0 1,505,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 585,000 0 0 0 0 0 0 0 585,000 Grant 0 0 0 0 0 o. 0 0 0 Total Funding $585,000 $0 $0 $0 $0 $0 $0 $0 $585,000 Internally Funded $0 $720,000 $200,000 $0 $0 $0 $0 $0 $920,000 Source and Pump Station Flow Meters 0 30,000 0 0 0 0 0 0 30,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $30,000 $0 $0 $0 $0 $0 $0 $30,000 Tracy ton Water District Improvements Phase II 725,000 0 0 0 0 0 0 0 725,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 725,000 0 0 0 0 0 0 0 725,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $725,000 $0 $0 $0 $0 $0 $0 $0 $725,000 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 13 of 38 CITY OF BREMERTON WA TER DEPARTMENT Page 3 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects West 580 PS#2A, 12" Trans. Main 1,350,000 0 0 0 0 0 0 0 1,350,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $1,350,000 $0 $0 $0 $0 $0 $0 $0 $1,350,000 Anderson Creek PS#2 and Well 7&8 85,000 0 0 0 0 0 0 0 85,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $85,000 $0 $0 $0 $0 $0 $0 $0 $85,000 Oyster Bay Facility, yard, roof, tile replacement 0 54,000 0 0 0 0 0 0 54,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $54,000 $0 $0 $0 $0 $0 $0 $54,000 West 650 12" DM, Reservoir #23,12" DM 200,000 0 0 0 0 0 0 0 200,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant (Emergency Services RC) 400,000 0 0 0 0 0 0 0 400,000 Total Funding $400,000 $0 $0 $0 $0 $0 $0 $0 $400,000 Internally Funded ($200,000) $0 $0 $0 $0 $0 $0 $0 ($200,000) HB Valve 100,000 0 0 0 0 0 0 0 100,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 100,000 0 0 0 0 0 0 0 100,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $100,000 $0 $0 $0 $0 $0 $0 $0 $100,000 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Design and Construction of Ultraviolet Treatment 0 0 300,000 1,000,000 1,000,000 0 0 0 2,300,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $300,000 $1,000,000 $1,000,000 $0 $0 $0 $2,300,000 14 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 4 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects 12" Dist Water Main - Shorewood Drive to Res 21 0 330,000 0 0 0 0 0 0 330,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $330,000 $0 $0 $0 $0 $0 $0 $330,000 12" Dist Water Main - Pine to Flagstone 0 0 180,000 0 0 0 0 0 180,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $180,000 $0 $0 $0 $0 $0 $180,000 3000 Road Culvert Replacement 0 20,000 0 0 0 0 0 0 20,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $20,000 $0 $0 $0 $0 $0 $0 $20,000 24" Pipe on C Street from Oyster Bay to National Avenue 0 0 0 0 250,000 1,250,000 0 0 1,500,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $250,000 $1,250,000 $0 $0 $1,500,000 Twin Lakes Diversion Improvement 0 75,000 0 0 0 0 0 0 75,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $75,000 $0 $0 $0 $0 $0 $0 $75,000 Cover for Dewatering Facility 0 0 0 0 0 307,000 0 0 307,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $307,000 $0 $0 $307,000 15 of 38 CITY OF BREMERTON WA TER DEPARTMENT Page 5 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects Loop Main on West Kitsap Lake Road 0 0 380,000 0 0 0 0 0 380,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $380,000 $0 $0 $0 $0 $0 $380,000 Loop Main on Lakehurst Drive & PSE 0 0 0 81,000 0 0 0 0 81,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $81,000 $0 $0 $0 $0 $81,000 Replace Well 18 Pump and Motor 0 0 63,000 0 0 0 0 0 63,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $63,000 $0 $0 $0 $0 $0 $63,000 Bypass Tunnel Below McKenna Falls Weir 0 0 0 50,000 200 000 0 0 0 250,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $50,000 $200,000 $0 $0 $0 $250,000 Booster Station 3 (Lafayette) & PRV Upgrade 0 0 70,000 0 0 0 0 0 70,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $70,000 $0 $0 $0 $0 $0 $70,000 490 Zone Extension on Sylvan 0 0 0 486,000 0 0 0 0 486,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $486,000 $0 $0 $0 $0 $486,000 16 of 38 CITY OF BREMERTON WATER DEPARTMENT Page 6 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects 12" Main on McWilliams Rd. From Mc Williams CI. to Pine R 0 0 0 171,000 0 0 0 0 171,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $171,000 $0 $0 $0 $0 $171,000 E. 18th SI. Loop 0 0 0 113,000 0 0 0 0 113,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $113,000 $0 $0 $0 $0 $113,000 36" Main Davis Street Connector 0 0 0 126,000 0 0 0 0 126,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $126,000 $0 $0 $0 $0 $126,000 Gold Mountain Gold Course Irrigation 0 0 0 0 650,000 0 0 0 650,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $650,000 $0 $0 $0 $650,000 Storage Improvements W440 & 398 Zones 0 0 0 0 0 0 416,000 1,000,000 1,416,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $416,000 $1,000,000 $1,416,000 Reservoir No. 14 Demolition 0 0 0 0 0 0 341,000 0 341,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $341,000 $0 $341,000 17 of 38 CITY OF BREMERTON WA TER DEPARTMENT Page 7 of 8 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects Re-Drill Well #9 0 0 0 0 0 0 0 332,000 332,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $332,000 $332,000 Well #9 Chlorination & Telemetry 0 0 0 0 0 0 0 166,000 166,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $166,000 $166,000 Manette Bridge Water Main 2004 Isolation Valve 136,000 0 0 0 0 0 0 0 136,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $136,000 $0 $0 $0 $0 $0 $0 $0 $136,000 12" Dist Water Main - 13th St & High & Ohio 0 0 0 0 0 640,000 0 0 640,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $640,000 $0 $0 $640,000 Pine Road - Mc Williams to Well 21 12" Water Main 0 0 0 0 0 137,000 0 0 137,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $137,000 $0 $0 $137,000 398-490 Zone Conversion & PRV 0 0 0 0 0 0 281,000 0 281,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $281,000 $0 $281,000 18 of 38 CITY OF BREMERTON WA TER DEPARTMENT Page 8 of 8 EXHIBIT 28 CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 20111 Total Total Capital Projects Marine Drive from Cedar Dr. North 8" Water Main 0 0 0 0 0 0 0 290,000 290,000 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $290,000 $290,000 Other Unscheduled Projects 0 0 0 0 0 0 0 0 0 PWTF Loan 0 0 0 0 0 0 0 0 0 DWSRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Capital Projects $4,147,500 $3,597,000 $1,648,000 $2,507,000 $2,580,000 $2,814,000 $1,518,000 $2,268,000 21,079,500 19 of 38 CITY OF BREMERTON Water Fund EXHIBIT 3 DEVELOPMENT OF THE COMMODITY ALLOCATION FACTOR CUSTOMER CLASS Retail City Retail - County - (Includes Port) Puget Sound Naval Shipyard (PSNS) Wholesale Firelines Actual Water Production Allocation Factor Notes: Water Flow (CCF) [1] Losses: 5.0% Total Water Flow % of Total 1,688,659 651,960 873,280 64,857 o 3,278,756 84,433 32,598 43,664 3,243 o 163,938 1,773,092 684,558 916,944 68,100 o 3,442,694 3,576,016 51.50% 19.88% 26.63% 1.98% 0.00% 100% (COM) [1J Assumed unaccounted for water percentage of less than 5.4% from page 2-22 section 2.4.2 in 1999 Updated Water Compo Plan [2J Surcharge applied to outside city customers only. [3J 2002 Water Production and Consumption Report 20 of 38 CITY OF BREMERTON Water Fund EXHIBIT 4 DEVELOPMENT OF CAPACITY ALLOCATION FACTORS CUSTOMER CLASS Retail City Retail - County - (Includes Port) puget Sound Naval Shipyard (PSNS) Wholesale Firelines Total Peak Day 2002 Allocation Factor Notes: Average Total Peak Day Use Peaking Day Use % of (MGD) Factor (MGD) Total 3.63 2.20 7.99 52.15% 1.40 2.20 3.09 20.13% 1.88 1.55 2.91 19.00% 0.14 2.20 0.31 2.00% 0.00 0.00 0.00 6.71% [4] 7.06 14.30 100% 14.30 [5] (CAP) % of Total 7.99 65.49% 3.09 25.28% 0.00 0.00% 0.31 2.52% 0.00 6.71 % 11.39 100% (CAP W/O N) [4J Represents stand-by peak capacity use. (2,000 gal/min (x) 180 min / total peak day use) [5J 2002 Water Production and Consumption Report 21 of 38 Water Fund EXHIBIT 5 DEVELOPMENT OF CUSTOMER ALLOCATION FACTORS CUSTOMER CLASS Retail City Retail - County - (Includes Port) Puget Sound Naval Shipyard (PSNS) Wholesale Firelines Total Alloet/on Factor Notes: Customer Service & Accounting Meters & Services Number of % of Weighting Weighted % of Weighting Weighted % of Meters [6] Total Factor [7] Customer Total Factor [7] Customer Total 10.481 62.47% 62.5% 1.00 10.481 60.50% $100 1,048,100 59.82% 5.488 32.71% 32.7% 1.00 5,488 31.68% $100 548,800 31.32% 3 0.02% 0.0% 25.00 75 0.43% $3,000 9,000 0.51% 585 3.49% 3.5% 2.00 1,170 6.75% $250 146,250 8.35% 220 1.31% 1.3% 0.50 110 0.63% $0 0 0.00% 16,777 100.0% 100.0% 17,324 100% 1,752,150 100% (AG) (WCA) (WCMS) [6J City provided no. of customers as of December 2002 [7J Weighting factors for customer services and accounting for the classes ranged from 0.5 to 2.0, PSNS at 25.0 The range for customer meters and services was from $100 - residential to $3,000 - industrial which was based on a equivalent meter and service ratio in A WWA M1 manual. 22 of 38 CITY OF BREMERTON Water Fund EXHIBIT 6 DEVELOPMENT OF PUBLIC FIRE PROTECTION ALLOCATION FACTOR CUSTOMER CLASS Retail City Retail - County - (Includes Port) Puget Sound Naval Shipyard (PSNS) Wholesale Firelines Total Alloctlon Factor Notes: Fire Proto Total PFP Number of Requiremts Duration Requirements % of Accounts (gals/min.) [8] (minutes) (1,000 gals) Total 10,481 1,000 120 1 ,257,720 65.48% 66% 5,488 1,000 120 658,560 34.29% 34% 3 5,000 300 4,500 0.23% 0% 585 0 120 0 0.00% 0% 220 0 0 0 0.00% 0% 16,777 1,920,780 100% (FP) [8J Fire prDtectiDn requirements obtained frDm 1999 Water System Plan Update page 7-2. Requirements fDr the "all Dther" class ranged from 1,000 gpm, two (2) hDur duratiDn, fDr residential tD 5,000 gpm, five (5) hDur duratiDn, for PSNS. 23 Df 38 CITY OF BREMERTON Water Fund EXHIBIT 7 DEVELOPMENT OF REVENUE RELATED ALLOCATION FACTOR Revenues Revenues at At Present % of Present Rates % of CUSTOMER CLASS Rates Total (w/o PSNS) Total Retail City $2,085,740 45.3% $2,085,740 57.9% Retail - County - (Includes Port) 1,324,486 28.7% 1,324,486 36.7% Puget Sound Naval Shipyard (PSNS) 1,004,416 21.8% 0 0.0% Wholesale 110,122 2.4% 110,122 3.1% Firelines 84,321 1.8% 84,321 2.3% Total $4,609,085 100.0% $3,604,669 100.0% Alloction Factor (RR) (RR-NOPSNS) 24 of 38 CITY OF 8REMERTON Water Fund EXHIBIT 8 FUNCTIONALlZATION AND CLASSIFICATION OF PLANT IN SERVICE Account Desc. Source of Supply 171 Land w Watershed 173 Bld& Structures - Wells 173 BId & Structures. Dam 173 BId & Structures 179 Other Improvements 188 Machinery & Equipment 188.8 General Assets Total Source of Supply Treatment 173 Building & Structures 178 other Improvements 18B Machinery & Equipment IBM General Assets Total Treatment Storage 171 Land 113 ReservOirs 179 Other Improvements 188 Machinery & Equipment Total Storage Transmission 171 Land 173 BUilding & Structures 1BB Machinery & Equipment Total Transmission Distribution 173 BUilding & Structures ,~~~,,'~~~~ ~~~~em.;~~ts V. ,M.I",cS",Ii':131 ,* 'c 178 Mains 16" -36" 1711 Hydrants 179 Services 178 Firs Services 188 Meters 179 GeneralAssets Total Distribution Pumping 173 Building & Structures 179 Other Improvements 188 Machinery & EqUipment Total Pumping Total Plant before General GtJneral/Admmlstration Plant 171 land 173 BUilding & Structures 179 Other Improvements 1BB Machinery & Equipment 1BB General Assets Total General Plant/Admin Total Plant In Service Total Plant as of 10/2003 $2,886,657 567,657 1,499,013 905,545 1,668,109 1,835,643 121,325 $9,483,949 100.0% $1,072,248 239,865 700,923 121452 $2,134,488 $19,510 3,121,641 25,526 187200 $3,353,877 $64,673 161,229 9,850 $235,752 $339,702 708,933 c, ;'~~~~~~;~~:: ft :4'~ 10,619,840 1,247,590 2,356,197 336,834 4,586,269 177,195 $33,524,090 $764,083 71,911 906151 $1,742,145 $50,474,301 100.00% $114,570 1,167,553 150,979 32,847 357,411 $1,823,360 $52,297,661 100.00% Page 1 ot2 $1,414,462 278,152 734,516 443,717 817,373 899,465 59,449 $4,647,135 490% $1,072,248 239,865 700,923 121,452 $2,134,488 $1,472,195 289,505 764,497 461,828 850,736 936,178 61,876 $4,836,814 51.0% $0 o o o $0 $18,925 3,027,992 24,760 181584 $3,253,261 $0 o o o $0 $29,287 61,121 2;~~~:.~ o o o o o 15,277 $2,890.281 $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 $19,811 $57,695 41,343 120,406 ':u1Jla3,~~ ""q-:<,~ ''o}}> ii.1fll>'1 ~,'M:41}f. o 3,292,150 o 0 o 0 o 0 o 0 10,334 30,095 $1,955,050 $5,693,759 $0 o o $0 $0 o o $0 $6,781,623 $18,485,435 $2,890,281 $1,955,050 $5,693,759 13.44% 36.62% 5.73% 3.87% 11.28% $15.393 156,870 20,285 4,413 48,021 $244,983 $0 o o $0 $64,673 161,229 9850 $235,752 $6,561 66,857 8,645 1,881 20,466 $104,410 54,438 45,223 5,848 1,272 13,844 $70,625 $12,924 131,706 17,031 3,705 40,318 $205,684 $0 $85,295 o 178,004 .~ {~~:~~: r~;2i1Jg: o 4,867,006 o 0 o 0 o 0 o 0 o 44,491 $0 $8,417,463 $0 o o $0 $764,083 71,911 906,151 $1,742,145 $7,026,606 $19,153,212 $2,994,691 $2,025,675 $5,899,443 13.44% 36.62% 5.73% 3.87% 11.28% $41,959 427,598 55,294 12,030 130,896 $667,778 $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 3~~ $0 o o $0 $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 $0 o 'f\~,." o o o o o o $0 $73,018 152.384 'ofT-rO" ~. "\~ '<: . 00 o o 2,356,197 o 4,586,269 38,088 $7,205,956 $0 o o $0 $0 o o o o o o $0 0.0% $0 o o o o o o $0 00% $0 o o o $0 $0 o o o $0 $0 o o o $0 $0 $585 o 93,649 o 766 o 5616 $0 $100,616 $0 o o $0 $0 $0 o 0 o 0 $0 $0 $14,807 $59,788 30,902 124,773 ,jA~t8tg }!f:Il(;Q,44~ o 2,460,684 o 1,247,590 o 0 o 336,834 o 0 7724 31,187 $1,461,282 $5,900,299 $0 o o $0 $0 o o $0 $0 $7,205,956 $1,461,282 $6,000,916 0.00% 14.28% 2.90% 11.89% $0 $16,357 o 166,686 o 21,554 o 4,689 o 51,026 $0 $260,312 $3,317 33,802 4,371 951 10,347 $52,788 $13,621 138,811 17.950 3,905 42493 $216,780 $0 $7,466,268 $1,514,070 $6,217,696 0.00% 14.28% 2.90% 11.89% 25 of 38 $0 o o o o o o $0 0,0% $0 o o o $0 $0 o o $0 $0 0.00% $0 0.00% $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 $0 o 0' '(ki',;. o o o o o o $0 $0 o o $0 $0 0.00% $0 o o o o $0 $0 0.00% $0 o o o o o o $0 0.0% $0 o o o $0 $0 o o o $0 $0 o o $0 $0 o o o o o o o $0 $0 o o $0 $0 o o o o $0 Ba5/5 of Clilssificatlon $0 49% Com 51% Cap o 49% Com 51% Cap o 49% Com 51% Cap o 49% Com 51% Cap o 49% Com 51% Cap o 49% Com 51% Cap o 49% Com 51% Cap $0 0.0% $0 100% Com o 100% Com o 1000k Com o 100% Com $0 $0 97% o 97% o 97% o 97% $0 Cap 3% FP Cap 30A, FP Cap 3% FP Cap 3% FP $0 0% o 0% o 0% $0 Com 100% Cap Com 100% Cap Com 100% Cap $0 As other Dist Plant o As Other Dlst Plant , :'1~tC , ~'::,~:'~t :~'~~~,ig;Wt?~~" o 46% Cap 31% AC o 100% FP o 100% WCMS o 100% FP o 100% WCMS o As other Dist Plant $0 t~~i~~ ~I~:i 23% FP $0 0% o 0% o 0% $0 Com 100% Cap Com 100% Cap Com 100% Cap $0 0.00% $0 As Total Pit. Before General o As Total PIt. Before General o As Total Pit Before General o As Total Pit. Before General o As Total Pit. Before General $0 $0 0.00% CITY OF BREMERTON Water Fund EXHIBIT 8 FUNCTIONALlZATlON ANO CLASSIFICATIoN OF PLANT IN SERVIcE Account Desc. Less: Accumulated Depreciation 191.9 Intangible Plant 173.9 BUildings & structures 179.9 Other Improvements 1ee.9 Machinery & EqUipment 166.95 General Assets Total Accumulated Depreciation Net Plant In Service Plus Cash Working Capital 1/8 O&M Expense Prepayments Inventories (materials and supplies) Total Cash Working Capital Less Contributtons in Aid of Construction less Net Navy Capital Charge (1) & [21 Net Contributions In Aid of Construction NET RATE BASE Total Plant as of 10/2003 $166,487 3,606,024 8,751,796 2,556.834 427,525 15,508,666 Commodity Icm.il $22,369 1,687,168 302,158 1,117,245 125 897 $3,254,837 Actual Capacity Capacity Customer .ICAPI (CAP WIO NI lAC wo Nl $60,973 $9,533 $6,449 $18,781 1.331,909 67,382 45,579 132,740 2,545,000 800,418 541,420 961,722 1,424,259 1.309 886 2,580 130,484 19657 13296 38724 $5,492,625 $898,299 $607,630 $1,154,546 Actual Customer IACI Customer Related Weighted For: Customer Meters & Fire Acctg. Services Protection IWCAI IWCMS' 'FP wo N Fire Protection IF PI $36,788,995 $3,771.769 $13,660,588 $2,096,391 $1,418,046 $4,744,a97 100.00% 10.25% 37.13% 5.70% 3.85% 12.90% $661,701 $172,379 $230.942 $23,690 $16,024 $56,801 0 $0 $0 $0 $0 $0 415,630 55,843 152,218 23,800 16,099 46 885 $1,077,331 $228,223 $383,160 $47,490 $32,123 $103,686 $19,093,455 $0 $0 $0 $0 $0 4,222,229 0 0 0 0 0 14,871,226 $0 $0 $0 $0 $0 $22,995,100 $3,999,992 $14,043,748 $2,143,881 $1,450,169 $4,848,583 $0 $23,768 $4,820 $19,794 0 167,994 34,067 139,186 0 1,995,576 404,679 1,200,824 0 3,265 662 6,629 0 49,008 9,938 40,520 $0 $2,239,611 $454,166 $1,406,952 $0 $5,226,657 $1,059,904 $4,810,744 0,00% 14.21% 2.88% 13.08% $32,869 $62,655 $11,977 $54,363 $0 $0 $0 $0 0 59,337 12033 49,414 $32,869 $121,992 $24,010 $103,777 $0 $0 $0 $0 0 0 0 0 $0 $0 $0 $0 $32,869 $5,348,649 $1,083,914 $4,914,521 Page 2 of2 Revenue Direct Assignment Related Navy All Other (RRI IOA-Nl (DA-OI Basis of Classlflcation $0 $0 $0 As Plant In Service 0 0 o As Bldgs & Structures 0 0 o As Other Improvements 0 0 o As Mach & Equip 0 0 o As General Assets $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% $0 $0 $0 As O&M Expenses $0 $0 $0 As O&M Expenses 0 0 o As General Plant $0 $0 $0 $0 $0 $19,093,455 As DA All other 0 0 4,222,229 As DA All Other $0 $0 $14,871,226 $0 $0 ($14,871,226) 26 of 38 [1] Net navy capital charges IS deducted from contnbutions In aid to mdicate that this capital payment was to compensate the City for capital costs and is not a "true" capItal contnbution and should not be used to reduce rate base. [2] Navy contribution depreciated as follows: Prior Study Per Year Amort Seven Yrs ContractAmt 1f.i:l2.44% Total Amort 5,091,931 124,243 869,702 Distribution Storage Fire Flow Requirements hrs 240 gall/minute 4,000 Total 960,000 from water complan Storage Capacity 34,240,000 gallons page 5-11 section 5.7 storage Public Fire Protection Capacity 3% 97% Source of Supply Capacity/Commodity Average Day Peak Day 7.06 Comm 14.30 1-comm=Cap 49% 51% Distribution Main Analysis Installed MtrSize Length (It) Repicmt $ Total City uses $7-$9 per inch diameter depending on surface restoration <=2" 89405 $ 18.00 $1,609,290 2 $9.00 18 2.5 89 $ 20.00 $1,780 $8.00 20 3 10,490 $ 24.00 $251,760 24 4 132,399 $ 32.00 $4,236,768 32 6 418,352 $ 48.00 $20,080,896 46.241% 48 8 530,430 $ 64.00 $33,947,520 64 10 46,466 $ 80.00 $3,717,280 80 12 179,638 $ 96.00 $17,245,248 96 1,407,269 81,090,542 (4) 16" 24,853 0 18" 50,659 0 20" 2,273 0 24" 37,445 0 27" 4,931 0 28" 13,172 0 30" 2,048 0 36" 17,325 0 1,559,975 $ 364.00 $160,571,794 Customer% (1) Total @ 2" Equiv fT otal Cost $25,330,842 31% Capacity (2) Cost for 2-6" (3) Equiv 6" for larger 1+2-3/4 $26,180,494 $36,313,632 46% Fire Protection 1-comm-cap 23% 27 of 38 CITY OF BREMERTON Water Fund EXHIBIT 9 ALLOCATION OF RATE BASE Retail Retail Basis of Classification Comnonents Rate Base Inside Outside PSNS Wholesale Firelines Allocation Commodity Related $3,999,992 $2,060,117 $795,373 $1,065,377 $79,124 $0 (COM) Capacity Related $14,043,748 $7,323,711 $2,827,550 $2,668,405 $281,285 $942,797 (CAP) Capacity Related With Out Navy $2,143,881 $1,403,982 $542,051 $0 $53,923 $143,925 (CAP WIO N) Customer Related - Actual Customer without Navy $1,450,169 $906,118 $474,456 $0 $50,575 $19,020 (AC wo N) - Actual Customer $4,848,583 $3,029,028 $1,586,042 $867 $169,066 $63,580 (AC) - Weighted for: Customer Accounting $32,869 $19,886 $10,413 $142 $2,220 $209 (WCA) Meters & Services 5,348,649 $3,199,452 $1,675,278 $27,474 $446,446 $0 (WCMS) Total Customer Related $11,680,270 $7,154,483 $3,746,189 $28,483 $668,307 $82,809 Fire Protection Related $1,083,914 $711,410 $372,504 $0 $0 $0 (FP wo N) Fire Protection Related $4,914,521 $3,218,011 $1,684,996 $11,514 $0 $0 (FP) Revenue Related $0 $0 $0 $0 $0 $0 (RR) Direct Assignment - Navy $0 $0 $0 $0 $0 $0 (DA) Direct Assignment - All Other ($14,871,226) ($9,518,973) ($4,362,442) $0 ($495,655) ($494,156) As All Other Allocations Total Net Allocated Rate Base $22,995,100 $12,352,740 $5,606,222 $3,773,779 $586,985 $675,374 28 of 38 CITY OF BREMERTON Water Fund EXHIBIT 10 FUNCTIONALlZA TION AND CLASSIFICATION OF EXPENSES Customer Related Weighted For: Actual Customer Meters & Fire Direct Assignment Actual Fire Budget Commodity Capacity Capacity Customer Customer Acctg. Services Protection Protection Revenue Related Navy ~II Other Acct. No. Account Desc. CY 2004 (COM) ICAP) ICAP WIO N) lAC wO N) (AC) IWCA) IWCMS) IFP wO N) IFP) (RR) R-NOPSNS) IDA-Nl IDA.O) Basis of 401.34.534,103<1 Water Administration X.x.x.X.510Q1 Labor/Benefits $149,062 $15,282 $55,350 $8,494 $5,746 $19,225 $0 $21,177 $4,295 $19,492 $0 $0 $0 $0 As Plant I X.x.X.x.5D750 Reallocated Equipment Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i x.x.x.x.53110 Office & Operating Supplies 17,000 1,743 6,312 969 655 2,193 0 2,415 490 2,223 0 0 0 o As Plant i X.x.x.X.S3119 Office Supplies - Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i X.X.X.X.S3510 Small Tools & Equipment 5,000 513 1,857 285 193 645 0 710 144 654 0 0 0 o As Plant i X.x.x.X.53530 Computer Related Items 5,000 513 1,857 285 193 645 0 710 144 654 0 0 0 o As Plant I x.x.X.X.5400Q Reallocated Vehicle Costs 21,345 2,166 7,926 1,216 823 2,753 0 3,033 615 2,791 0 0 0 o As Plant I X.X.X.X.5411O Prof. Services 10,000 1,025 3,713 570 365 1,290 0 1,421 288 1,308 0 0 0 o As Plant J x.x.x.x.54119 Professional Services ~ Interfund 365,028 37,424 135,543 20,801 14,070 47,080 0 51,860 10,517 47,733 0 0 0 o As Plant j X.xX.X.5421o Telecommunications 35,000 3,588 12,996 1,994 1.349 4,514 0 4,972 1,008 4,577 0 0 0 o As Plant I XX.X.X.5422o Postage 4,500 0 0 0 0 4,500 0 0 0 0 0 0 0 0 100% x.x.x.x.5430o Travel 1,500 154 557 85 58 193 0 213 43 196 0 0 0 o As Plant i xx.xx.54400 Advertising 500 51 186 26 19 64 0 71 14 65 0 0 0 o As Plant j XX.X.x.54520 Equipment Rental 1,260 129 468 72 49 163 0 179 36 165 0 0 0 o As Plant i XX.X.X.54619 Insurance Premiums -lnterfund 150,611 15.441 55,925 6,562 5,905 19.425 0 21,397 4,339 19,695 0 0 0 o As Plant i XX.X.X.54810 EqUipment Repair 2,604 267 967 146 100 336 0 370 75 341 0 0 0 o As Plant i XX.X.X.54910 Miscellaneous 14,000 1,435 5199 796 540 1,806 0 1989 403 1,831 0 0 0 o As Plant i Total Administration $782,410 $79,755 $266,856 $44,329 $29,965 $104,632 $0 $110,519 $22.412 $101,724 $0 $0 $0 $0 .534.1034 Customer Service XXX.X.51001 Reallocated Labor Costs $240,660 $0 $0 $0 $0 $0 $240,680 $0 $0 $0 $0 $0 $0 $0 100% XX.X.X.53110 Office & Operating Supplies 10,000 0 0 0 0 0 10,000 0 0 0 0 0 0 0 100% XX.X.X.5353510 Small Tools and Equipment 500 0 0 0 0 0 0 500 0 0 0 0 0 0 100% x.x.X.X.5353D Computer Related Items 1,500 0 0 0 0 0 1,500 0 0 0 0 0 0 0 100% x.x.X.X.5400D Reallocated VehIcle Costs 4,753 0 0 0 0 0 0 4,753 0 0 0 0 0 0 100% X.xX.X.54110 ProfeSSional Services (PSE billing) 22,000 0 0 0 0 0 0 22,000 0 0 0 0 0 0 100% XX.X.X.54119 Professional Services Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.5421Q Telecommunication 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% X X.X.X 54220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.5430Q Travel 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.x.X545Z0 Equipment Rental 625 0 0 0 0 0 0 825 0 0 0 0 0 0 100% XX.X.X.54810 Equipment Repair 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.54910 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 o As alt oth Total Cust. Service & Marketing $280,258 $0 $0 $0 $0 $0 $252,180 $28,078 $0 $0 $0 $0 $0 $0 Total Water Administration $1,052,668 $79,755 $288,856 $44,329 $29,985 $104,832 $252,180 $138,597 $22,412 $101,724 $0 $0 $0 $0 Engineering .534.8037 Operations XX.X.X.51001 Reallocated Labor Costs $215,482 $22,092 $80,013 $12,279 $8,306 $27,792 $0 $30,614 $6,206 $26,178 $0 $0 $0 $0 As Plant J XX.X.X.53120 Office & Operating Supplies 2,000 205 743 114 77 258 0 284 58 262 0 0 0 o As Planti XX.X.X.53510 Small Tools & EqUipment 1,000 103 371 57 39 129 0 142 29 131 0 0 0 o As Plant 1 XX.x.X.535JO Computer Related Items 9,000 923 3,342 513 347 1,161 0 1,279 259 1,177 0 0 0 o As Plant i X,X.X.X.54000 Reallocated Vehicle Costs 14,665 1,504 5,445 636 565 1,891 0 2,063 423 1,916 0 0 0 o As Planti X,X,X.X.54110 Prof. Services - External 0 0 0 0 0 0 0 0 0 0 0 0 0 o A6 Plant I XX.XX.54210 Telecommunications 600 62 223 34 23 77 0 85 17 78 0 0 0 o As Plant i XXXX.54300 Travel 850 87 316 48 33 110 0 121 24 111 0 0 0 o As Plant I X.X:.X.X.54220 Postage 100 10 37 6 4 13 0 14 3 13 0 0 0 o As Plant I XX.X.X.54119 Advertising 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i x.x:.x.x.54520 Rents - Equipment 1,800 165 686 103 69 232 0 256 52 235 0 0 0 o As Plant i XX X X.51310 Equipment Repair 1,000 103 371 57 39 129 0 142 29 131 0 0 0 o As Planti XX.X.X.54910 Miscellaneous 1,000 103 371 57 39 129 0 142 29 131 0 0 0 o As Planti Total Engineermg Operations $247,497 $25,374 $91,901 $14,103 $9,540 $31,921 $0 $35,162 $7,130 $32,364 $0 $0 $0 $0 29 of 38 Page 1 of 4 Classification n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service AC n Service n SerVice n Service n SerVice n Service n Service WCA WCA WCMS WCA WCMS WCMS WCA AC AC AC WGMS WGMS er Gust Exp. n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service CITY OF BREMERTON Water Fund EXHIBIT 10 FUNCTIONALlZATION AND CLASSIFICATION OF EXPENSES Customer Related Weighted For: Actual Customer Meters & Fire Fire Direct Assignment Actual Budget Commodity Capacity Capacity Customer Customer Acctg. Services Protection Protection Revenue Related Navy~1I Other Acct. No. Account Desc. CY 2004 (COM) (CAP) (CAP WID N) lAC wo N) lAC} (WCA) (WCMS) IFPwoN) (FP' (RR R-NDPSNS) fDA-N} (DA-D' Sasls of 40131 Water Resource Manager X.X53".5031 Mamtenance XX.X.X.5070D Reallocated Labor Cost $204,533 $100,221 $104,312 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Soure XX.X..x.53110 Office & Operating Supplies 35,000 17,150 17,850 0 0 0 0 0 0 0 0 0 0 o As Soure XX.X.X.53121 Utility Inventory 1,500 735 765 0 0 0 0 0 0 0 0 0 0 o As Soure X.xX.X.53119 Operating Supp. -Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Soure x.x.x.x.53219 Fuel Consumed -IFD 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Soure XX.x.X.5351Q Small Tools & Equipment 7,000 3,430 3,570 0 0 0 0 0 0 0 0 0 0 o As Soure X.x.x.X.53530 Computer Related Items 1,000 490 510 0 0 0 0 0 0 0 0 0 0 o As Soure x.x.x.x.53520 Small EqUipment & Furniture 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.x.X.54000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54110 Professional Services - External 25,000 12,250 12,750 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc X-X.XX.54$20 Equipment 5,000 2.450 2,550 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54740 Garbage 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.5.4810 Equipment Repair 10,000 4,900 5,100 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54619 Equipment Repair -Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54820 other Improvements 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54630 Structures & Grounds RepaIr 300,000 147,000 153,000 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54910 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Sourc Total Maintenance $589,033 $288,626 $300,407 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 X.X.53-4.7031 Customer Service XX.X.X.50700 Reallocated Labor Costs $17,129 $0 $0 $0 $0 $17,129 $0 $0 $0 $0 $0 $0 $0 $0 100% XX.X.X.53120 Office & Operating Supplies 4,000 0 0 0 0 0 4,000 0 0 0 0 0 0 0 100% x.x X.X.53121 Utility Inventory 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.x.X.X.5J510 Small Tools & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.x.X.X.540DO Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.xx.x 54110 Prof. Services External 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% X.XX.X.54220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.x.X.X.543DD Travel 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.x.xx.s4400 Advertising 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.S4520 Rents - Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.54910 Miscellaneous 4,000 0 0 0 0 3,243 757 0 0 0 0 0 0 o As all oth Total Cust. Service $25,129 $0 $0 $0 $0 $20,372 $4,757 $0 $0 $0 $0 $0 $0 $0 X.X.534.8031 Operations XX.XX.51001 Reallocated Labor Costs $485,448 $49,770 $180,258 $27,663 $18,712 $62,611 $0 $68,968 $13,986 $63,480 $0 $0 $0 $0 As Plant i X.X.X.X.53110 Office & Operating Supplies 70,000 7,177 25,993 3,989 2,69B 9,02B 0 9,945 2,017 9,154 0 0 0 o As Plant i XX.X.X.53121 Utility Inventory 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i XX.X.X.53210 Vehicle Fuel 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i XX.X.X.53510 Small Tools & Equipment 50,000 5,126 1B,566 2,849 1,927 6,449 0 7,104 1,441 6,53B 0 0 0 o As Plant 1 X.x.x.X.53530 Computer Related Items 2.000 205 743 114 77 25B 0 2B4 5B 262 0 0 0 o As Plant i X.x.x.X.54000 Reallocated Vehicle Costs 51,B47 5,316 19,252 2,954 1,998 6,687 0 7,366 1,494 6,7BO 0 0 0 o As Plant. XX.X.X.54110 Professional ServIces - External 155,000 15,891 57,555 8,833 5,975 19,991 0 22,021 4,466 20,269 0 0 0 o As Plant i XX.X.X.54210 Telephone 8,000 B20 2,971 456 30B 1,032 0 1,137 230 1,046 0 0 0 o As Plant i XX.X.X.54220 Postage 500 51 1B6 2B 19 64 0 71 14 65 0 0 0 o As Planti XXX.X.54300 Travel 2,500 256 92B 142 96 322 0 355 72 327 0 0 0 o As Plant i X.xX.X.544DO Advertising 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i XX.X.X.54520 EqUipment 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant I XX.X.X.54710 Natural Gas 2,000 2,000 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.54720 Electricity 275.000 275,000 0 0 0 0 0 0 0 0 0 0 0 0 100% X.xX.X.54730 Water/SewerlStormwater 400 41 149 23 15 52 0 57 12 52 0 0 0 o As Plant i X.xX.X.54810 EqUipment Repair 1,000 103 371 57 39 129 0 142 29 131 0 0 0 o As Plant i XX.X.X 54620 Repairs - Other Improvements 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant i X.X X.X.5491O Miscellaneous 20,000 2050 7,426 1140 771 2580 0 2 B41 576 2,615 0 0 0 o As Plant i Total Operations $1,123,695 $363,807 $314,397 $48,248 $32,636 $109,203 $0 $120,291 $24,394 $110,719 $0 $0 $0 $0 Total Water Resources $1,737,857 $652,433 $614,804 $48,248 $32,636 $129,575 $4,757 $120,291 $24,394 5110,719 $0 $0 $0 $0 30 of 38 Page 2 of 4 Classification e of supply e of Supply e of Supply e of Supply e of Supply e of supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of supply Ae weA Ae WCMS WCMS weA Ae Ae Ae WCMS er Cust Exp. n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service Com Com n Service n Service n Service n Service CITY OF BREMERTON Water Fund EXHIBIT 10 FUNCTIONALlZATlON AND CLASSIFICATION OF EXPENSES Customer Related Weighted For: Actual Customer Meters & Fire Fire Direct Assignment Actual Budget Commodity Capacity Capacity Customer Customer Acctg. Services Protection Protection Revenue Related Navy ~II Other Acet. No. Account Desc. CY 2004 (COM) (CAP) (CAP W/O N) (AC wo N) (ACl (WCAI (WCMSI (FP wo N) (FPI (RR) R-NOPSNS (DA-N) (DA-D) Basfs of Wastewater Manager 534.9032 Other Operations - Biosolids x.x.x,x.51001 Reallocated Labor Costs $69,206 569,208 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Treat X,X.x.X53110 OfflCe & Operating Supplies 58,000 58,000 0 0 0 0 0 0 0 0 0 0 0 o As Treat X.x.x.X.53121 Utility Inventory 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Treat X.x.xX.53510 SmaltTools & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Treat X.xX.X.5.4000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Treat x.x.x.x.54110 Prof. Services p External 0 0 0 0 0 0 0 0 0 0 0 0 0 o h Treat X.X.X,X.54720 Electricity 9,500 9,500 0 0 0 0 0 0 0 0 0 0 0 0 100% X.X.X.X.S810 Equipment Repair 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Treat x.x.xx.s-4910 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Treat Total Wastewater Manager $136,708 $136,708 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 401.33. Utility Operations X.X.534.5033 Maintenance X.x.x.X.51001 Reallocated labor Cost $1,017,970 $104,367 $377.995 $56,006 $39,238 $131,294 $0 $144,624 $29,328 $133,116 $0 $0 $0 $0 As Plant i x.x,x,x.53110 Office & Operating Supplies 100,000 10,252 37,132 5,698 3,855 12,898 0 14,207 2,881 13,077 0 0 0 o As Plant i x.x.x.x.53119 Office Supplies -Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant I x.x.X.X.53121 Utility Inventory 10,000 1,025 3,713 570 365 1,290 0 1.421 266 1,308 0 0 0 o As Plant I XX.XX.53420 Purchases for Inventory 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant! XXX.X.53510 Small Tools & Equipment 10,000 1,025 3,713 570 365 1,290 0 1,421 268 1,306 0 0 0 o As Plant I XX.X.x.53530 Computer Related Items 5,000 513 1.857 285 193 645 0 710 144 654 0 0 0 o As Plant j XX.X.X.540DO Reallocated Vehicle Costs 171,132 17,545 63,545 9,752 6,596 22,072 0 24,313 4,930 22,378 0 0 0 o As Plant I X.X.X.X.54110 Professional Services - External 3,000 308 1,114 171 116 387 0 426 66 392 0 0 0 o As Plant I x.x.x.x.54210 Telecommunications 1,500 154 557 65 56 193 0 213 43 196 0 0 0 o As Plant I XX.X.x.S4220 Postage 500 51 186 26 19 64 0 71 14 65 0 0 0 o As Plant i XXX.X.543CO Travel 2,000 205 743 114 77 256 0 264 56 262 0 0 0 o As Planti x.x.x.x.5440c AdvertiSing 2,000 205 743 114 77 256 0 264 56 262 0 0 0 o As Plant I XX.X.X.54520 Rents - EqUipment 4,500 461 1,671 256 173 560 0 639 130 566 0 0 0 o As Plant i X,X.X.X.54710 Natural Gas 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100% x.x.x.x.54720 Electricity _ Olympus Drive Only 20,000 20,000 0 0 0 0 0 0 0 0 0 0 0 0 100% X.xXX.54740 Garbage 2,000 205 743 114 77 256 0 264 56 262 0 0 0 o As Plant i XX.XX.54810 Equipment Repair 6.000 620 2,971 456 306 1,032 0 1,137 230 1,046 0 0 0 o As Plant I XX.X X 54830 Structures & Grounds 5,000 513 1,857 265 193 645 0 710 144 654 0 0 0 o /J...s Plant I X.X.X.X.54910 Miscellaneous 35,000 3,588 12,996 1,994 1,349 4,514 0 4,972 1,008 4,577 0 0 0 o As Plant i x.x.x.x.54919 Miscellaneous -IFD 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant I Total Utility Operations $1,397,602 $161,238 $511 ,535 $78,502 $53,100 $177,676 $0 $195,716 $39,689 $160,143 $0 $0 $0 $0 .401.39 Forestry 534.5039 Maintenance X.x.XX.51001 Reallocated labor Costs $26,658 $13,062 $13,596 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Sourc X.xX.X.53110 Office & Operating Supplies 16,000 7,840 8,160 0 0 0 0 0 0 0 0 0 0 o As Sourc XXX.X.53121 Utility Inventory 100 49 51 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.53s10 Small Tools & Equipment 500 245 255 0 0 0 0 0 0 0 0 0 0 o As Sourc X.x.X.X.54000 Reallocated Vehicle Costs 32,127 15,742 16,385 0 0 0 0 0 0 0 0 0 0 o As Sourc X.x.X.X.54110 Professional Services 10,000 4,900 5,100 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 o n Sourc x.x.x.x.54810 Rents - Equipment 7,500 3,675 3,825 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54B30 Structures & Ground Repair 2,500 1,225 1,275 0 0 0 0 0 0 0 0 0 0 o As Sourc x.x.x.x.54910 Equipment Repair 100 49 51 0 0 0 0 0 0 0 0 0 0 o As Sourc Total Maintenance $95,485 $46,788 $46,697 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 31 of 38 Page3of4 Classification ment Plant ment Plant ment Plant ment Plant ment Plant ment Plant Com ment Plant ment Plant n Service n Service n Service n SerVice n Service n Service n Service n Service n Service n Service n Service n Service n Service n Service Com Com n Service n Service n ServIce n Service n Service e of Supply e at Supply e of Supply e of Supply e of Supply e of Supply e of Supply e 01 Supply e of Supply e of Supply CITY OF BREMERTON Water Fund EXHIBIT 10 FUNCTIONALlZATION AND CLASSIFICATION OF EXPENSES Customer Related Weighted For: Actual Customer Meters & Fire Fire Direct Assignment Actual Budget Commodity Capacity Capacity Customer Customer Acctg. Services Protection Protection Revenue Related Navy~1l Other Acet. No. Account Desc. CY 2004 (COM) {CAP' (CAP WIO N) lAC wo Nl lAC} (WCA) (WCM5) (FP wo NI (FP) {RR R.NOP5N5} fDA-Nl fDA-OJ B..I. of .5'J4.90J9 Other Operations x.x,X x 51001 Reallocated Labor Cost $274,683 134.595 140,088 0 0 0 0 0 0 0 0 0 0 o As Soure x.x.x.x.51060 Overtime Pay (Cops Watershed Patrol) 40,000 19.600 20,400 0 0 0 0 0 0 0 0 0 0 o As Soure x.x.x.x.s3110 Office & Operating Supplies 25,000 12.250 12,750 0 0 0 0 0 0 0 0 0 0 o As Soure X.x.x.X,S3121 Utility Inventory 100 49 51 0 0 0 0 0 0 0 0 0 0 o As Soure XX.X,X.53119 Operating Supplies - Interfund 0 0 0 0 0 0 0 0 0 0 0 0 0 o As Soure X.x.x.x.53210 Vehicle Fuel 0 0 0 0 0 0 0 0 0 0 0 0 0 o /J.$. Bourc XX.X.X.53510 Small Tools & EqUipment 2,000 980 1,020 0 0 0 0 0 0 0 0 0 0 o As Bourc XX.X.X.53530 Computer Related Items 500 245 255 0 0 0 0 0 0 0 0 0 0 o As Bourc XXXX.54000 Reallocated Vehicle Costs 51,257 25,116 26,141 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.S"110 ProfessIOnal ServIces. External 65,500 32,095 33.405 0 0 0 0 0 0 0 0 0 0 o As Bourc XX.X.x.54210 Telecommunications 500 245 255 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54220 Postage 500 245 255 0 0 0 0 0 0 0 0 0 0 o As Sourc XXXX.5-4JOO Travel 1,000 490 510 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.S4400 Advertlsmg 100 49 51 0 0 0 0 0 0 0 0 0 0 o As Sourc XXX.XS4520 Equipment 5,000 2,450 2,550 0 0 0 0 0 0 0 0 0 0 o As Sourc XX.X.X.54710 Natural Gas 1,500 1,500 0 0 0 0 0 0 0 0 0 0 0 0 100% XX.X.X.54720 Electricity 4,000 4,000 0 0 0 0 0 0 0 0 0 0 0 0 100% xx.x.x.s"y40 Garbage 1,000 490 510 0 0 0 0 0 0 0 0 0 0 o As Soure XXX.X.54510 Equipment Repair 1,000 490 510 0 0 0 0 0 0 0 0 0 0 o As Soure XX.X.X.54520 Other Improvements 1,000 490 510 0 0 0 0 0 0 0 0 0 0 o As Soure xx.x.x.s4s10 Miscellaneous 20,000 9,800 10,200 0 0 0 0 0 0 0 0 0 0 o As Soure Total other Operations $494,640 $245,179 $249,461 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Forestry $590,125 $291,966 $298,159 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total O&M Expense $5,172,457 $1,347,474 $1,805,254 $185,182 $125,261 $444,006 $256,937 $489,767 $93,825 $424,950 $0 $0 $0 $0 Taxes/Transfer Payments Intergovern Service & Tax 231.791 0 0 0 0 0 0 0 0 0 231,791 0 0 0 100% Payment In-Lieu of Taxes 519,272 0 0 0 0 0 0 0 0 0 519,272 0 0 0 100% ULlO Payment (12%) 120,000 0 0 0 0 0 0 0 0 0 120,000 0 0 0 100% ULlD Payment (City Ownership) 120,000 0 0 0 0 0 0 0 0 0 120,000 0 0 0 100% External Taxes & Assessments 4,000 0 0 0 0 0 0 0 0 0 4,000 0 0 0 100% Total Taxes/Transfer Payments $995,063 $0 $0 $0 $0 $0 $0 $0 $0 $0 $995,063 $0 $0 $0 Depreciation Expense $1 31,tO.~6 $134,722 $487,935 $74,880 $50,650 $169,480 $0 $186,688 $37,858 $171,832 $0 $0 $0 $0 As Plant I Net O&M plus Depreciation $7,481,566 $1,482,196 $2,293,189 $613,486 $256,937 $676,455' $131,483 $596,783 $995,063 $0 $0 $0 $260,062 $175,911 32 of 38 Page 4 of 4 Classification e of supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply e of Supply Com Com e of Supply e of Supply e of Supply e of Supply RR RR RR RR RR n Service CITY OF BREMERTON Water Fund EXHIBIT 11 ALLOCA TION OF NET REVENUE REQUIREMENTS Retail Retail Basis of Classification Components Rev. Reqmts Inside Outside PSNS Wholesale Firelines Allocation Commodity Related $1,482,196 $763,376 $294,725 $394,775 $29,319 $0 (COM) Capacity Related $2,293,189 $1,195,881 $461,708 $435,721 $45,931 $153,948 (CAP) Capacity Related with out Navy $260,062 $170,309 $65,753 $0 $6,541 $17,459 (CAP WIG N) Customer Related - Actual Customer $175,911 $109,916 $57,553 $0 $6,135 $2,307 (AC wo N) - Actual Customer $613,486 $383,260 $200,680 $110 $21,392 $8,045 (AC) - Weighted for: Customer Accounting $256,937 $155,447 $81,394 $1,112 $17,353 $1 ,631 (WCA) Meters & Services 676,455 $404,642 $211,876 $3,475 $56,463 $0 (WCMS) Total Customer Related $1,722,790 $1,053,264 $551,504 $4,697 $101,342 $11,983 Fire Protection Related $131,483 $86,297 $45,186 $0 $0 $0 (FP wo N) Fire Protection Related $596,783 $390,771 $204,613 $1,398 $0 $0 (FP) Revenue Related - All $995,063 $450,294 $285,946 $216,845 $23,774 $18,204 (RR) Revenue Related - No PSNS 0 0 0 0 0 0 $995,063 $450,294 $285,946 $216,845 $23,774 $18,204 Direct Assignment $0 $0 $0 $0 $0 $0 (DA) Total Net Revenue Requirements $7,481,566 $4,110,192 $1,909,435 $1,053,437 $206,908 $201,595 33 of 38 CITY OF BREMERTON Water Fund EXHIBIT 12 DEVELOPMENT OF THE RETURN COMPONENT Retail Retail Total Inside Outside PSNS Wholesale Firelines Notes/Reference Present Rate Revenues $4,609,085 $2,085,740 $1,324,486 $1,004,416 $110,122 $84,321 Exhibit 7; Revenue Related Allocation Factor less: Expenses 7,481,566 $4,110,192 $1,909,435 $1,053,437 $206,908 $201,595 Exhibit 11; Allocation of Rev. Requirements Net Income ($2,872,481) ($2,024,452) ($584,949) ($49,021) ($96,786) ($117,274) Difference of Lines Above Rate Base $22,995,100 $12,352,740 $5,606,222 $3,773,779 $586,985 $675,374 Exhibit 1 0; Allocation of Rate Base Proposed % Rate of Return [1] -5.56% -15.21% 9.00% 7.632% -15.21% -15.21% See Footnote [1] Return Component ($1,278,432) (1,878,988) 504,560 288,015 (89,287) (102,732) Rate Base (x) Rate of Return less: Credit for ULlD Amortization [2J (41,841) See Footnote; Negotiated item Total Net Revenue Requirement $6,203,134 2,231,204 2,413,995 1,299,610 117,621 $98,863 Current Expenses (+) Return Component Plus: Additional Taxes $249,400 $112,861 $71,669 $54,350 $5 959 $4,563 8.5% PilOT Retail & 5.029 Excise Tax-All on Add'l Rev. Total Revised Revenue Requirements $6,452,534 $2,344,064 $2,485,664 $1,353,960 $123,580 $103,425 Total Rev, Req. (+) IntergovVlnterfund $ Difference Over Base Rates ($1,843,449) ($258,324) ($1,161,178) ($349,544) ($13,458) ($19,104) Present Rates (-) Net Rev. Requirement % Difference Over Base Rates 40.0% 12.4% 87.7% 34.8% 12.2% 22.7% $ Difference (I) Present Rate Revenues [1J Rate of return for PSNS set based upon formula - See Rate of Return worksheet [21 ULlD originalallocation to Navy = $52,301; 5 year amortization = $10,460/year. Credit to COSA is $52,301 - $10,460 = $41,841 34 of 38 CITY OF BREMERTON EXHIBIT 13 AVERAGE UNIT COSTS Retail Retail Total Inside Outside PSNS Wholesale Firelines Commodity Costs - $ / ccf $0.45 $0.45 $0.45 $0.45 $0.45 $0.00 Capacity Costs - $ / ccf $0.70 $0.71 $0.71 $0.50 $0.71 $0.00 Revenue/Direct/Other - $ / ccf $0.56 $0.56 $0.86 $0.31 $0.46 $0.00 Return Component -$0.39 -$1.11 $0.77 $0.33 -$1.38 $0.00 Total $/ccf $1.32 $0.61 $2.80 $1.59 $0.24 $0.00 Customer Costs - $ / Cust. / mo. $8.67 $8.37 $8.37 $130.46 $14.44 $39.18 Average Total Costs - $ / ccf $1.89 $1.32 $3.70 $1.54 $1.81 $0.00 Basic Data - Annual Water Flow - ccf 3,278,756 1,688.659 651,960 873,280 64,857 0 Number of Customers 16,557 10,481 5,488 3 585 Equivalent Meters 220 35 of 38 Specifically, the proposed definitions for determining the rate of return for rate setting purposes is as follows: "The Rate of Return allowed under this contract shall be the City's cost of debt plus a risk premium of2.5% The rate of return will be reviewed in any cost of service study prepared by the City for its utilities throughout throughout the life of this contract. The rate of return shall also meet the following tests I) It shall be the greater of: a. The City's cost of embedded debt plus 2.5%, or b. The City's current cost of borrowing plus 2.5% 2) It shall always be greater than or equal to the rate of return for in-City retail customers (owner customers), but less than or equal to the rate of return for outside city customers 3) It shall always be greater than or equal to zero The City's "cost of borrowing" shall be the numerical (simple) average of at least three recent debt issue~ (within the previous 90 days ifpossible) in the marketplace for municipal entities with similar terms and credit ratings. The City's "cost of embedded debt" shall be the weighted average of all non-subsidizee outstanding debt for the combined utilities. These indexes shall be submitted to the Navy for review ane comment prior to use in a future COSA prepared by the City." 36 of 38 UTILITY SYSTEM NONSUBSIDIZED REVENUE BONDS AND LOANS Water Utility (401) Wastewater Utility (451) Stormwater Utility (481) Combined Systems Matu rity Interest Outstanding Debt Weighted Debt Weighted Debt Weighted Debt Weighted Date Rate 12/31/2005 .E!!lli!. A!:!:!2!!.!!! Ave. % Amount Ave. % Amount Ave. % A!:!:!2!!.!!! Ave. % 1994 Water/Sewer Revenue 09/01/06 5.1 $ 2,515,000 451 $ 2,515,000 2.481 $ 2,515,000 2.298 1994 Water/Sewer Revenue 09/01/07 5.5 2,655,000 451 2,655,000 2.824 2,655,000 2.616 2005 Water/Sewer Revenue 8/31/05 5.1 406,587 401 $ 406,587 5.025 406,587 0.371 2002 Lease Purchase Pitney Bowes CC 4/30/07 7.3 6,056 401 6,056 0.107 6,056 0.008 Total Weighted Average Interest Cost $ 5,582,643 $ 412,643 5.132 % $ 5,170,000 5.305 % $ 0.000 % $ 5,582,643 5.293 % Plus: Risk Premium of 2.5% 2.500 % 2.500 % 2.500 % 2.500 % Test 1 Total Rate of Return - Current Debt + Risk Premium 7.632 % 7.805 % 2.500 % 7.793 % Current Cost of Borrowing 4.560 % 4.560 % 4.560 % 4.560 % Plus: Risk Premium of 2.5% 2.500 % 2.500 % 2.500 % 2.500 % Test 2 Total Rate of Return. Cost of Borrowing + Risk Premium 7.060 % 7.060 % 7.060 % 7.060 % Rate of Return to Be Used - Greater of Test 1 or Test 2 7.632 % 7.805 % 7.060 % 7.793 % 37 of 38 WATER ESCALATION 2004 TO 2008 Following Revenue % What City % Navy % Navy as a Requir. Change Adopted Change Adjustments Change % of Total Old Revenue $4,609,085 $4,609,085 $1,004,416 1st (2004) Adjustment [1] $6,452,534 40.0% $5,991,811 30.0% $1,353,960 34.8% 20.98% 2nd (2006) Adjustment $6.890,582 6.8% = $6,890,582 15.0% $1,445,877 6.8% 20.98% 3rd (2007) Adjustment $7,179,986 4.2% $7,179,987 4.2% $1,506,604 4.2% 20.98% 4th (2008) Adjustment $7,431,286 3.5% $7,431,286 3.5% $1,559,335 3.5% 20.98% [1] - The revenue requirement for 2004 is adjusted from the original 2004 study to reflect the additional PILOT payments included within revised study. Note: Navy amount of $1 ,358,360 represents the final negotiated amount. Water Rate Design - 2008 Rates Target Rev. from C-O-S $1,559,335 Fixed Costs (30%) Variable Costs (70%) $468,000 $1,091,335 $1,559,335 12 Mths = 873,280 cd = $39,000 /Month $1.25 /CCF 38 of 38 :^ y~ '""", .... .No ; ~ ^', , .... / ......... ~ ~ '^ ,y. ^~ ~7, y ~ "sewer Technical Appendices> 0,' 0" " / / , , ....', ,,(" ....':1::'/ N:..::......' -; iX-;" .... J. )! ^ '" .... .<:\..;::: " ,/ CITY OF BREMERTON WASTEWATER DEPARTMENT EXHIBIT 1 ESCALATION FACTORS 2004 2005 2006 2007 2008 2009 2010 Escalation Factors Revenues Other Revenues 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Expenses Power 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Labor -68% @ 3%, Other -12%@3%, 20%@26%-medical 7.60% 7.60% 7.60% 7.60% 7.60% 7.60% 7.60% Materials & Supplies 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Equipment 1.00% 1.00'/0 1.00% 1.00% 1.00% 1.00% 1.00% Miscellaneous 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Depreciation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% New Debt Service Long Term Debt Term in Years 20 20 20 20 20 20 20 Rate 5.50% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Public Works Trust Fund Loans Term in Years 20 20 20 20 20 20 20 Rate 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% Centennial Clean Water Fund Loan Term in Years 5 5 5 5 5 5 5 Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Interest Rates Interest Income 2.00% 2.00% 3.00% 3.00% 4.00% 4.00% 4.00% Growth 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1 of 31 CITY OF BREMERTON Page 1 of7 WASTEWATER DEPARTMENT EXHIBIT Z SOURCES AND APPLICATIONS OF FUNDS Budget Projected Z004 Z005 Z006 Z007 Z008 Z009 Z010 ZOll Notes: SOURCES OF FUNDS Rate Revenues 451.35.343.5001 Wastewater Sales Retail $7,280,964 $7,353,774 $7,427,311 $7,501,584 $7,576,600 $7,652,366 $7,728,890 $7,806,179 Calc 2004, Incr by Growth Wastewater Sales Navy 1,796,128 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 No Growth Total Rate Revenues $9,077,092 $9,164,390 $9,237,927 $9,312,200 $9,387,216 $9,462,982 $9,539,506 $9,616,795 Miscellaneous Revenues 451.35.341.5000 Sales of Maps & Publication $1,000 $1,010 $1,020 $1,030 $1,041 $1,051 $1,062 . $1,072 As Other Revenue 451.35.342.4001 Sanitary Sewer 15,000 15,150 15,302 15,455 15,609 15,765 15,923 16,082 As Other Revenue 451.35.342.4002 Storm Detention 0 0 0 0 0 0 0 0 As Other Revenue 451.35.343.5004 Septage Dump Charges 3.000 3,030 3,060 3,091 3,122 3,153 3,185 3,216 As Other Revenue 451.35.343.5005 Lechate Hauling & Dumping 50.000 50,500 51,D05 51,515 52,030 52,551 53,076 53,607 As Other Revenue 451.35.343.5006 Sewer Connectionl Other Charges 10,DOO 100 1 0 0 0 0 0 As Growth 451.35.343.8300 Plan checking Fees 500 505 510 515 520 526 531 536 As Other Revenue 451.35.361.1100 Investment Interest 10,000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Other Revenue 451.35.369 4000 Judgements and Settlements 0 0 0 0 0 0 0 0 Flat 451.35.313,1000 Retail Sales and Use Tax 50,000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 As Growth Interfund Loan 0 0 0 0 0 0 0 0 One time 2004 Discretionary ReserVe 186,000 0 0 0 0 0 0 0 One time 2004 Total Misc, Revenues $325,500 $130,895 $132,104 $133,424 $134,758 $136,106 $137,467 $138,842 Total Revenues $9,402,592 $9,295,285 $9,370,031 $9,445,624 $9,521,975 $9,599,088 $9,676,973 $9,755,636 APPLICATIONS OF FUNDS 451,31 Water Resources X.X.535.5031 Maintenance XXX.51.DOi Reallocated Labor Costs SO $0 $0 $0 $0 $0 $0 $0 As Labor X.X.X.53121 Office & Operating Supplies 0 0 0 0 0 0 0 0 As Mat & Supplies XXX.53.SiD Utility Inventory 0 0 0 0 0 0 0 0 As Mat & Supplies XXX.53.S3D Small Tools & Equipment 0 0 0 0 0 0 0 0 As Equipment XXX.54810 Computer Related Items 0 0 0 0 0 0 0 0 As Equipment X.XXS4910 Equipment Repair 0 0 0 0 0 0 0 0 As Equipment x X.X 54.000 Miscellaneous 0 0 0 0 0 0 0 0 As Misc, X.X.X.54.220 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment X.X,X.54.520 Postage 0 0 0 0 0 0 0 0 As Mat & Supplies X.X.X.54.a10 Equipment Rental 0 0 0 0 0 0 0 0 As Equipment X.X.X.54910 Equipment Repair 0 0 0 0 0 0 0 0 As Equipment Miscellaneous 0 0 0 0 0 0 0 0 As Misc. Total Maintenance $0 $0 $0 $0 $0 $0 $0 $0 X.X.535.7031 X X.X.51.001 Customer Se/Vice X.X.X.53.120 Reallocated Labor Costs $0 $0 $0 $0 $0 $0 $0 $0 As Labor X,X,X,54,000 Office & Operating Supplies 0 0 0 0 0 0 0 0 As Mat & Supplies X.x.X.54.110 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment X.X.X.54.220 Professional Services 0 0 0 0 0 0 0 0 As Misc, X.X.X.54.300 Postage 0 0 0 0 0 0 0 0 As Mat & Supplies x X.X.54.910 Travel 0 0 0 0 0 0 0 0 As Mise, Miscellaneous 0 0 0 0 0 0 0 0 As Misc, Total Customer Service $0 $0 $0 $0 $0 $0 $0 $0 2 of 31 CITY OF BREMERTON Page 2 017 WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Notes: XXX.51.aOi Operations X,XXS3.110 Reallocated Labor Costs $93.917 $101,055 $108,735 $116,999 $125,891 $135,458 $145,753 $156,830 As Labor X,X,X.53.121 Operating Supplies 10.000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Mat & Supplies XXX.53.SiD Utility InventOlY 0 0 0 0 0 0 0 0 As Mat & Supplies x X.X.53.530 Small Tools & Equipment 0 0 0 0 0 0 0 0 As Equipment X.X.x.S4.000 Computer Related Items 0 0 0 0 0 0 0 0 As Equipment X.X.X.54.110 Reallocated Vehicle Costs 4,~12 4,254 4,297 4,340 4,383 4,427 4,471 4,516 As Equipment X.X.X.54.210 Professional Services :?'o,OOfJ 25,250 25,503 25,758 26,015 26,275 26,538 26,803 As Misc. X X.X.54.220 Telecommunications 0 0 0 0 0 0 0 0 As Misc. X X.X.54 300 Postage 1.000 1,010 1,020 1,030 . 1,041 1,051 1,062 1,072 As Mat & Supplies X.x.X.54.400 Travel 500 505 510 515 520 526 531 536 As Misc. X.X.X.54.910 Advertising 0 0 0 0 0 0 0 0 As Misc. Miscellaneous 1,000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. Total Operations $135,629 $143,184 $151,285 $159,975 $169,296 $179,298 $190,031 $201,551 Total Water Resource Manager $135,629 $143,184 $151,285 $159,975 $169,296 $179,298 $190,031 $201,551 451.32 X.X 535.5032 Wastewater Manager XXX.51.aQi Maintenance X.X.X.53.110 Reallocated Labor Costs 5558,841 $601,313 $647,013 $696,186 $749,096 $806,027 $867,285 $933,199 As Labor X.X.X.53.210 Office & Operating Supplies 150.000 151,500 153,015 154,545 156,091 157,652 159,228 160,820 As Mat & Supplies xxx 53.510 Fuel 0 0 0 0 0 0 0 0 As Misc. X.X.X.53.530 Small Tools & Equipment dO.OOO 40,400 40,804 41,212 41,624 42,040 42,461 42,885 As Equipment X,X,X.54.000 Computer Related Items 20.000 20,200 20,402 20,606 20,812 21,020 21,230 21 ,443 As Equipment X.X.X.54,110 Reallocaled Vehicle Costs 17,939 18,118 18,300 18,483 18,667 18,854 19,043 19,233 As Equipment X.X X.54.30G Professional Services 0 0 0 0 0 0 0 0 As Misc. X.X,X.54.520 Travel 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Misc. X.X.X.54.740 Equipment 9,000 9,090 9,181 9,273 9,365 9,459 9,554 9,649 As Equipment X,X.X.54.810 Garbage 0 0 0 0 0 0 0 0 As Misc. XXX.54.830 Equipment Repair 100.000 101,000 102,010 103,030 104,060 105,101 106,152 107,214 As Equipment X X.X.54.919 Structures & Grounds Repair 0 0 0 0 0 0 0 0 As Misc. Miscellaneous 3,000 3,030 3,060 3,091 3,122 3,153 3,185 3,216 As Misc. Total Maintenance $900,280 $946,166 $995,315 $1,047,971 $1,104,399 $1,164,883 $1,229,729 $1,299,268 3 of 31 CITY OF BREMERTON Page 3 of7 WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Notes: X.X,X.51.001 Operations X.x.X.53.110 Reallocated Labor Costs $626,276 $673,873 $725,087 $780,194 $839,489 $903,290 $971,940 $1,045,807 As Labor XXX.53,2iD Office & Operating Supplies 181.000 182,810 184,638 186,484 188,349 190,233 192,135 194,056 As Mat & Supplies X.X.X.53.510 Fuel 0 0 0 0 0 0 0 0 As Misc. x X,X.S3.530 Small Tools & Equipment 11.000 11,110 11,221 11,333 11,447 11,561 11,677 11,793 As Equipment x X.X.54.00Q Computer Related Items 70,000 70,700 71,407 72,121 72,842 73,571 74,306 75,049 As Equipment X.X.X.54.110 Reallocated Vehicle Costs 21,Z29 21,441 21,656 21,872 22,091 22,312 22,535 22,760 As Equipment X.X X.54.210 Professional Services 100.000 50.000 50,500 51,005 51,515 52,030 52,551 53,076 As Misc. X.X X.54.220 Telecommunications 48,000 48,480 48,965 49,454 49,949 50,448 50,953 51,462 As Misc. X.XXS4.300 Postage 2.600 2,626 2,652 2,679 2,706 2,733 2,760 2,788 As Mat & Supplies X.x.x.54.400 Travel 5.000 5,060 5,121 6,182 6,244 6,306 6,369 6,433 As Mise, X.X.X.54.520 Advertising 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. X.X,X.54.710 Rents - Equipment 3,500 3,535 3,570 3,606 3,642 3,679 3,715 3,752 As Misc. X.X.X.54.720 Natural Gas 8,000 8,080 8,161 8,242 8,325 8,408 8,492 8,577 As Misc. XXX. 54. 730 Electricity 475,000 489,250 503,928 519,045 534,617 550,655 567,175 584,190 As Power X.X.X.54.740 WaterlSewerlS tormwater 65,000 65,650 66,307 66,970 67,639 68,316 68,999 69,689 As Misc. X X X.54.810 Garbage 0 0 0 0 0 0 0 0 As Misc. X.X.X.54.910 Equipment Repair 22,782 23,010 23,240 23,472 23,707 23,944 24,184 24,425 As Equipment Miscellaneous 55,000 55,550 56,106 56,667 57,233 57,806 58,384 58,967 As Misc. TotalOperations $1,697,387 $1,714,195 $1,785,598 $1,861,388 $1,941,876 $2,027,393 $2,118,297 $2,214,972 Total Wastewater Manager $2,597,667 $2,660,361 $2,780,912 $2,909,359 $3,046,274 $3,192,276 $3,348,027 $3,514,239 451.32 X.X.535.5033 Utility Operations X.X.X.51.001 Maintenance XXX53.110 Reallocated Labor Costs 5448,929 $483,048 $519,759 $559,261 $601,765 $647,499 $696,709 $749,659 As Labor X.X X.53.121 Operating Supplies 30,000 30,300 30,603 30,909 31,218 31,530 31,846 32,164 As Mat & Supplies x x X.53 510 Utility Inventory 7,000 7,070 7,141 7,212 7,284 7,357 7,431 7,505 As Mat & Suppiies X.X.x.S3.530 Small Toois & Equipment 'Ill.OOO 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Equipment X.X.X.54.000 Computer Related Items 4.000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 As Equipment X.x.X.54.110 Reallocated Vehicle Costs 107.106 108,177 1 09,259 110,351 111,455 112,569 113,695 114,832 As Equipment X.X.X.54.210 Professional Services 2.000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc., B/F main cleaning X.X.X.54.220 Telecommunications '100 707 714 721 728 736 743 750 As Misc. X X X 54.300 Postage 0 0 0 0 0 0 0 0 As Mat & Supplies X.X.X.54.520 Travel 1.000 1,010 1,020 1,030 1,041 1,051 1,062 1,072 As Misc. X.XX54 520 Equipment 2.000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Equipment XXX.54.740 Rents - Equipment 0 0 0 0 0 0 0 0 As Equipment X.X.X.54.810 Garbage 5,000 6,060 6,121 6,182 6,244 6,306 6,369 6,433 As Misc. X.X.X.54.820 Equipment Repair 5,000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Equipment XXX.54.910 Repairs 0 100,000 100,000 0 0 0 100,000 100,000 From City, Beachmain cleaning Miscellaneous 10.000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Misc. Total Maintenance $633,735 $769,702 $808,280 $749,667 $794,075 $841,732 $992,884 $1,047,796 XXS3S.7033 X.XX51.001 Customer Service x X'x'S4.000 Reallocated Labor Costs 0 $0 $0 $0 $0 $0 $0 $0 As Labor Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment Total Cust. Service $0 $0 $0 $0 $0 $0 $0 $0 Total Utility Operations $633,735 $769,702 $808,280 $749,667 $794,075 $841,732 $992,884 $1,047,796 4 of 31 CITY OF BREMERTON Page 40f7 WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES ANO APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Notes: xx 535.1035 Wastewater Administration X.X.X.51.001 Administration X.X X.53.110 Reallocated Labor Costs 5105.501 $113,519 $122,147 $131,430 $141,418 $152,166 $163,731 $176,174 As Labor X.X.X.53.510 Office & Operating Supplies 1,200 1,212 1,224 1,236 1,249 1,261 1,274 1,287 As Mat & Supplies X,X.X.53.530 Small Tools & Equipment 0 0 0 0 0 0 0 0 As Equipment XX.X.54.000 Computer Related Items 500 505 510 515 520 526 531 536 As Equipment x X.X.54.110 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 As Equipment X.X.X.54.119 Professional Services 10.000 10,100 10,201 10,303 10,406 10,510 10,615 10,721 As Misc. X.x.X.54.210 IFD Professional Services 276,268 279,031 281,821 284,639 287,486 290,360 293,264 296,197 As Misc. - General Fund X,X.X.54.220 Telecommunications 8,000 8,080 8,161 8,242 8,325 8,408 8,492 8,577 As Misc. X.X.X.54.300 Postage 4,500 4,545 4,590 4,636 4,683 4,730 4,777 4,825 As Mat & Supplies X.X.X.54.400 Travel 1,500 1,515 1,530 1,545 1,561 1,577 1,592 1,608 As Misc. X.X,X.54.520 Advertising 250 253 255 256 260 263 265 268 As Misc. X.X.x.54.510 Equipment Rental 2.554 2,580 2,605 2,631 2,658 2,684 2,711 2,738 As Equipment X.X.X.54619 Rents - Land & Buildings 0 0 0 0 0 0 0 0 As Misc. X.X.X.54620 IFD Insurance Premiums 201,818 203,836 205,875 207,933 210,013 212,113 214,234 216,376 As Misc. - Risk Management X.X.X.54.740 Claim Payments 0 0 0 0 0 0 0 0 As Misc. X.X.X.54.810 Garbage 0 0 0 0 0 0 0 0 As Misc. X.X.X.54.910 Equipment Repair 650 657 663 670 676 683 690 697 As Equipment Miscellaneous 5.000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 As Misc. Total Administration $617,741 $630,881 $644,683 $659,191 $674,457 $690,535 $707,484 $725,365 XX535.7035 X,X.X.51.0Q1 Customer Service X.XXS3.110 Reallocated Labor Costs $133.505 $143,651 $154,569 $166,316 $178,956 $192,557 $207,191 $222,938 As Labor X.XXS4.000 Office & Operating Supplies 0 0 0 0 0 0 0 0 As Mat & Suppiies XXX.54.110 Reallocated Vehicle Costs 4.091 4,132 4,173 4,215 4,257 4,300 4,343 4,386 As Equipment XXX.54.119 Professional Services 0 0 0 0 0 0 0 0 As Misc. XXX.54.220 IFD Professional Serivces 0 0 0 0 0 0 0 0 As Misc. X.X.X.54.30D Postage 0 0 0 0 0 0 0 0 As Mat & Supplies x X.X.54 910 Travel 825 833 842 850 858 867 876 885 As Misc. Miscel1aneous 0 0 0 0 0 0 0 0 As Misc. Total Customer Service $138,421 $148,617 $159,584 $171,381 $184,072 $197,724 $212,410 $228,208 Total Wastewater Administration $756,162 $779,498 $804,266 $830,572 $858,529 $888,259 $919,893 $953,573 5 of 31 CITY OF BREMERTON Page 5 017 WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget ProJected 2004 2005 2006 2007 2008 2009 2010 2011 Notes: X.X.535 8037 Wastewater Engineering X.X.X.51.001 Operations X.X.X.53110 Reallocated Labor Costs $226.545 $243,762 $262,286 $282,222 $303,671 $326,750 $351,583 $378,304 As Labor X.X.x.53510 Office & Operating Supplies 3,000 3,030 3,060 3,091 3,122 3,153 3,185 3,216 As Mat & Supplies X.X.X.54530 Small Tools & Equipment 1,900 1,919 1,938 1,958 1,977 1,997 2,017 2,037 As Equipment X.X.X.54.000 Computer Related Items 7,000 7,070 7,141 7,212 7,284 7,357 7,431 7,505 As Equipment X.X.X.54110 Reallocated Vehicle Costs 8.016 8,096 8,177 8,259 8,341 8,425 8,509 8,594 As Equipment X.X.X.54220 Professional Services 0 0 0 0 0 0 0 0 As Misc. X.X X.54300 Postage 125 126 128 129 130 131 133 134 As Mat & Supplies X.X X.54400 Travel 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 As Misc. X.X.x.54520 Advertising 2,500 2,525 2,550 2,576 2,602 2,628 2,654 2,680 As Misc. X.X.X.54810 Rents. Equipment 1,800 1,818 1,836 1,855 1,873 1,892 1,911 1,930 As Equipment XXX.54910 Equipment Repair 1.700 1,717 1,734 1,752 1,769 1,787 1,805 1,823 As Misc. Miscellaneous 4.000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 As Misc. Total Engineering Operations $258,586 $276,124 $294,973 $315,234 $337,013 $360,426 $385,595 $412,656 TOTAL O&M EXPENSES $4,381,779 $4,628,869 $4,839,717 $4,964,806 $5,205,187 $5,461,990 $5,836,431 $6,129,815 X.X.X.551QO Taxes/Transfer Payments X.x.X.55409 Intergovernmental Service $239,246 $238,581 $240,497 $242,435 $244,392 $246,368 $248,364 $250,381 3.852% Treat, 1.5% Coli Payment in Lieu of Taxes 771,553 778,973 785,224 791,537 797,913 804,353 810,858 817,428 8.5% on Rate Retail Revenue Total TaxesfTransler Payments $1,010,799 $1,017,554 $1,025,721 $1,033,972 $1,042,305 $1,050,722 $1,059,222 $1,067,808 TOTAL O&M EXPENSES (incl. taxes) $5,392,578 $5,646,422 $5,865,438 $5,998,778 $6,247,492 $6,512,712 $6,895,653 $7,197,623 Debt Service Revenue Bonds Existing 1994 Revenue Bond $2.803720 $2.803.410 $2,799,350 52,801.025 50 $0 $0 $0 Debt Scheduie New Revenue Bonds 0 0 0 0 0 0 0 0 Subtotal Revenue Bonds $2,803,720 $2,803,410 $2,799,350 $2,801,025 $0 $0 $0 $0 Public Works Trust Fund Loans Existing Warren Avenue CSO $177.163 $175,566 $173,970 5172,374 $170.778 $169.182 $167,586 $165,990 Debt Schedule Existing WNTP Odor Control 207,462. 205,610 203,767 201,905 200,053 198,200 1>)6,348 194,495 Debt Schedule Existing Callow CSO I 171.1:13 169.61H 168,104 166,590 165,075 163,561 162,046 160,532 Debt Schedule EXisting Callow CSO II "0.187 39 835 39,482 39, t30 38,777 38,425 38,072 37,719 Debt Schedule Existing CSO Reduction Design 56,600 56.111 55,623 S5,1~16 54,MB 54,160 53.672. 53,184 Debt Schedule EXIsting Multibasin CSO 174,'i'11 173.218 171,725 170,231 168.'138 16'1.244 16&.752 164,258 Estimated Repmt Sched. Existing Callow CSO III & V 261,412 259,178 256,944 254,709 252.475 250.241 248,007 245,772 Estimated Repmt Sched. Existing East Bremerton 172.583 171,792 171,000 170,208 169,~17 168,625 167,833 i67,04:1. Estimated Repmt Sched. Existing Naval Ave Force Main 21.500 2:1..000 21,500 21,000 20,500 20,000 19,500 19,000 Estimated Repmt Sched. New Anderson Cove BaSin 12 24.225 26.006 25,887 25,768 25,650 25,531 25,412 25,294 Need Updated Schedule New Pacific Avenue CSO Reduction () ,; !) ;"<% gp~; :lHa mJ9 2HB,8P~l Calculated (2,500K, 20,1.5%) New PWfF Loans 0 0 0 0 0 0 0 Subtotal PWfF Loans $1,306,976 $1,298,935 $1,287,992 $1,277,051 $1,266,111 $1,544,068 $1,533,127 $1,522,185 6 of 31 CITY OF BREMERTON Page 6 017 WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 Notes: Other Loans Existing SRF Callow Design $37.2"10 537.2"10 537,270 $37,2'70 $3'7.270 $3'7,2'70 $3l,2l0 $3l,2"10 Debt Schedule Existing SRF Callow Priority I 209,644 209.644 :7.09,644 2.00,6~4 2.00 ,6~~ 2.00,644 209.644 209,644 Debt Schedule Existing SRF Callow Priority II 103,429 0 0 0 0 0 0 0 Debt Schedule, ends 2004 Existing SRF Anderson Cove CSO 56,949 58,948 56,948 56,948 56,948 56.948 56,948 56,948 Debt Schedule Existing SRF Callow Final Priorities :l4,538 34,538 34,538 :l4,538 34,538 34.538 34,538 3~,5:18 Debt Schedule Existing SRF CSO Plan Update 14.934 'i4.934 14,934 '14,934 14,934 14,034 14,934 14,034 Debt Schedule Existing SRF Anderson Cove Refinance 3"1.981 37.981 37,081 37,981 3'7,981 3'7,981 37,981 3'1,081 Debt Schedule Existing SRF Anderson Cove Basin 12 0 8,06'1 17 .9~~4 17.934 Il,934 Il,93~ 17.t~~~4 H,93~ Estimated Repmt Sched. Existing SRF Low Interest Loan Program 0 0 14,045 14,945 14.945 14.945 14,945 14,945 Estimated Repmt Sched. Existing SRF Trenton Cherry CSO 0 59,'i'84 59,784 59,'l84 59,784 59.784 59.'184 59;784 Estimated Repmt Sched. Existing SRF Trenton Pump Station ?9,800 59,782 59,l82 59,'182 59,782 59,782 59,782 59.782. Estimated Repmt Sched. Existing SRF Tracy ton Beach CSO 20,715 41.429 41,429 41 ,429 41,429 41 ,429 41,429 41,429 Estimated Repmt Sched. Existing SRF Anderson Cove Inflo/lnfil 0 0 6.282 12,564 12,564 12,564 12.564 12,564 Estimated Repmt Sched. Existing SRF Pacific Ave CSO 0 14945 14,B45 14,945 14.9~5 '14.945 14,9~5 14,D45 Estimated Repmt Sched. New SRF Pacific Ave CSO Storage 0 28,902 59,805 59,805 09,805 59.805 59,805 59,805 Estimated Repmt Sched. New SRF CherryfTrenton Basins Final CSO Reduct. 0 58 .;>~G 50,716 582.t\G :'8.746 :/3.246 DG,240 ('i~./.N~ Calculated ($1mil, 20, 1.5%) New Interfund Loan Fm Equipment Rental Fund 9,258 0 n 0 0 0 lJ 0 End in 2004 New Interfund Loan 0 0 0 0 0 0 0 0 New Other Loans 0 0 18,406 30,665 39,665 39,665 39.665 39,665 Calculated, 20 years, 1.5% Subtotal Other Loans $554,608 $664,370 $742,872 $770,414 $770,414 $770,414 $770,414 $770,414 Total Debt SelVice $4,665,304 $4,766,715 $4,830,214 $4,848,490 $2,036,525 $2,314,482 $2,303,541 $2,292,599 Net Revenue Available for Capital Funding ($655,290) ($1,117,853) ($1,325,621) ($1,401,644) $1,237,957 $771,894 $477, 779 $265,414 Net Capital Projects Funded from Rates $600,000 $725,000 $750,000 $750,000 $2,200,000 $2,266,000 $2,333,980 $2,403,999 From Capital Funding AnalY5is To Capital Reserve $0 $0 $0 $0 $1,300,000 $900,000 $800,000 $500,000 TOTAL REVENUE REQUIREMENTS $10,657,882 $11,138,137 $11,445,653 $11,597,268 $11,784,017 $11,993,194 $12,333,174 $12,394,222 Balance/(Deficiency) of Funds ($1,255,290) ($1,842,853) ($2,075,621) ($2,151,644) ($2,262,043) ($2,394,106) ($2,656,201) ($2,638,585) Increase/(Decrease) as a % of Rates 13.8% 20.1% 22.5% 23.1% 24.1% 25.3% 27.8% 27.4% Plus: Additional Taxes w/Rate Increase ($176,905) ($259,708) ($292,512) ($303,225) ($318,784) ($337,395) ($374,331 ) ($371,849) Total Balance/(Deficiency) of Funds ($1,432,195) ($2,102,561) ($2,368,133) ($2,454,869) ($2,580,827) ($2,731,501) ($3,030,532) ($3,010,434) Rate Adjustment Required 15.8% 22.9% 25.6% 26.4% 27.5% 28.9% 31.8% 31.3% 7 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT EXHIBIT 2 SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 Debt Service Coverage Ratio - Wastewater Utility - All Debt Before Rate Increase 1.05 0.95 0.91 0.89 2.05 After Rate Increase 1.35 1.39 1.40 1.40 3.32 Debt Service Coverage Ratio - Wastewater Utility - Revenue Bond Only Before Rate Increase 1.74 1.62 1.57 1.55 0.00 After Rate Increase 2.25 2.37 2.41 2.43 0.00 Debt Service Coverage Ratio - Wastewater Utility - Other Debt Before Rate Increase 2.62 2.31 2.16 2.12 2.05 After Rate Increase 3.39 3.38 3.33 3.32 3.32 Debt Service Coverage Ratio - Combined Utility Before Rate Increase 1.28 1.07 0.99 0.90 1.71 After Rate Increase 1.54 1.97 2.17 2.22 4.75 Debt service coverage = 1.30 Gross revenue of the system = alf the earnings and revenue received by the system from any source including sale of forest products, except; general ad valorem taxes, grants, refunded bond escrow aeet earnings, gifts to system for capital purposes, proceeds from sale of city property, proceeds from city or system obligations Operating and Maintenance expenses; all reasonable expenses incurred by the City Including insurance premIUms, state imposed taxes payment to another agency for treatment or sewage disposal, excluding depreciation, city imposed utility taxes or PILOT. 8 of 31 Page 70f7 2009 2010 2011 Notes: 1.72 1.60 1.52 2.90 2.92 2.83 0.00 0.00 0.00 0.00 0.00 0.00 1.72 1.60 1.52 2.90 2.92 2.83 1.31 1.08 0.86 4.23 4.21 4.20 City of Bremerton - Wastewater Department SUMMARY OF SOURCES AND APPLICATIONS OF FUNDS Budget Projected 2004 2005 2006 2007 2008 2009 2010 2011 SOURCES OF FUNDS Wastewater Retail Sales $7,280,964 $7,353,774 $7,427,311 $7,501,584 $7,576,600 $7,652,366 $7,728,890 $7,806,179 PSNS Sales 1,796,128 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 1,810,616 Other Revenues 325,500 130,895 132,104 133,424 134,758 136,106 137,467 138,842 $9,402,592 $9,295,285 $9,370,031 $9,445,624 $9,521,975 $9,599,088 $9,676,973 $9,755,636 Total Sources of Funds APPLICATIONS OF FUNDS O&M Expenses $5,392,578 $5,646,422 $5,865,438 $5,998,778 $6,247,492 $6,512,712 $6,895,653 $7,197,623 Capital Oullays from Rates 600,000 725,000 750,000 750,000 2,200,000 2,266,000 2,333,980 2,403,999 Debt Service 4,665,304 4,766,715 4,830,214 4,848,490 2,036,525 2,314,482 2,303,541 2,292,599 To Capital Reserves 0 0 0 0 1,300,000 900,000 800,000 500,000 TOTAL NET REVENUE REQUIREMENT $10,657,882 $11,138,137 $11,445,653 $11,597,268 $11,784,017 $11,993,194 $12,333,174 $12,394,222 BALANCE/OEFICIENCY OF FUNDS ($1,255,290) ($1,842,853) ($2,075,621) ($2,151,644) ($2,262,043) ($2,394,106) ($2,656,201) ($2,638,585) Plus: Add'l Taxes w/Rate Increase ($176,905) ($259,708) ($292,512) ($303,225) ($318,784) ($337,395) ($374,331) ($371,849) TOTAL BALANCE OF FUNDS ($1,432,195) ($2,102,561) ($2,368,133) ($2,454,869) ($2,580,827) ($2,731,501) ($3,030,532) ($3,010,434) RATE ADJUSTMENT REQUIRED 15.8% 22.9% 25.6% 26.4% 27.5% 28.9% 31.8% 31.3% PROPOSED RATE ADJUSTMENT 10.0% 8.0% G.O% 3.0% 1.0% 1.0% 1.0% 1.0% ADDITiONAL REVENUE WITH RATE ADJUSTMENT $453,855 $1,722,905 $2,395,210 $2,766,267 $2,910,309 $3,057,767 $3,208,714 $3,363,226 BALANCE/DEFICIENCY OF FUNDS ($978,340) ($379,656) $27,077 $311,398 $329,483 $326,266 $178,181 $352,792 ADDITIONAL RATE ADJUSTMENT REQUIRED 10.8% 3.5% .0.2% -2.6% -2.7% -2.6% -1.4% -2.7% Present Residential Bill (10 CCF + Base Charge) $48.64 $53.50 $57.78 $61.25 $63.09 $63.72 $64.36 $65.00 Rate Impact with Increase $4.86 $4,28 $3.47 $1.84 $0.63 $0,64 $0.64 $0,65 Total Monthly Rate with Increase $53,50 $57,78 $61.25 $63.09 $63.72 $64.36 $65.00 $65.65 Working Capital Beginning Cash ($793,391 ) $0 ($379,656) ($352,579) ($41,181) $288,302 $614,568 $792,749 Plus: Additional Balance 0 0 27,077 311,398 329,483 326,266 178,181 352,792 Less: Deficiency of Funds (978,340) (379,656) 0 0 0 0 0 0 Less: Transfer to Capital 0 0 0 0 0 0 0 0 Ending Working Capital ($1,771,731) ($379,656) ($352,579) ($41,181) $288,302 $614,568 $792,749 $1,145,541 Target 15% of Operations Budget $647,109 $846,963 $879,816 $899,817 $937,124 $976,907 $1,034,348 $1,079,643 Capital Fund Ending Fund Balance $687,000 $453,000 $0 $0 $2,688,000 $3,584,000 $1,847,980 $1,881,979 TOTAL WORKING CAPITAL AND CAPITAL FUN[ ($1,084,731) $73,344 ($352,579) ($41,181) $2,976,302 $4,198,568 $2,640,729 $3,027,520 Debt Service Coverage Ratio - Wastewater Utility - All Debt Before Rate Increase 1.05 0.95 0.91 0.89 2.05 1.72 1.60 1,52 After Rate increase 1.14 1.31 1.40 1.47 3.48 3.05 3.00 2,98 9 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT Page 1 of 5 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects Sewer Main Replacement Program $100,000 $150,000 $220,000 $220,000 $350,000 $350,000 $350,000 $350,000 $2,090,000 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $100,000 $150,000 $220,000 $220,000 $350,000 $350,000 $350,000 $350,000 $2,090,000 VVWTP & Pump Station Improvements 150,000 165,000 215,000 215,000 400,000 450,000 450,000 450,000 $2,495,000 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $150,000 $165,000 $215,000 $215,000 $400,000 $450,000 $450,000 $450,000 $2,495,000 Fuel Tank Replacements (this rolled up to VVWTP Improv) 0 0 0 0 0 0 0 0 $0 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Automatic Power Switch Gear (this roll up to WlNTP Improv) 0 0 0 0 0 0 0 0 $0 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Emergency Power Supply (this rolled up into WlNTP improv) 0 0 0 0 0 0 0 0 $0 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Washington Street - Beachmain Abandonment 0 0 0 0 0 500,000 2,250,000 2,250,000 $5,000,000 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $500,000 $2,250,000 $2,250,000 $5,000,000 KL-1, 2 &* PB-1 Pump Station Upgrade 0 100,000 0 0 0 0 0 0 $100,000 PwrF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 10 of 31 CITY OF BREMERTON WASTEWA TER DEPARTMENT Page 2 of 5 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects New Roof on Control Building 0 15,000 0 0 0 0 0 0 $15,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $15,000 $0 $0 $0 $0 $0 $0 $15,000 WNT Solids Management 0 0 300,000 0 150,000 0 0 0 $450,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $300,000 $0 $150,000 $0 $0 $0 $450,000 Headworks Mechanical Bar Screen 0 100,000 0 0 0 0 0 0 $100,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 WNTP Upgrade/frontage improvements 0 0 0 150,000 0 0 0 0 $150,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $150,000 $0 $0 $0 $0 $150,000 Class A Water Filter 0 0 0 0 0 0 0 0 $0 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Methane Boiler 100,000 0 0 0 0 0 0 0 $100,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $100,000 $0 $0 $0 $0 $0 $0 $0 $100,000 11 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT Page 3 of 5 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects Generator 0 750,000 0 0 0 0 0 0 $750,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 750,000 0 0 0 0 0 0 750,000 Total Funding $0 $750,000 $0 $0 $0 $0 $0 $0 $750,000 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Outfall 0 0 0 0 0 600,000 0 0 $600,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $600,000 $0 $0 $600,000 Digester 0 0 0 0 0 0 2,000,000 0 $2,000,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $0 $2,000,000 $0 $2,000,000 Water Reuse 0 100,000 0 0 0 0 0 0 $100,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 Anderson Cove Basin CSS Project (OF-12) 0 380,000 0 0 0 0 0 0 $380,000 PWTF Loan 0 380,000 0 0 0 0 0 0 380,000 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $380,000 $0 $0 $0 $0 $0 $0 $380,000 Internally Funded $0 $0 $0 $0 $0 $0 $0 $0 $0 Trenton & Cherry Ave Basin CSO Reduc. (OF 7&3) 1,600,000 0 0 0 0 0 0 0 $1,600,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 1,250,000 0 0 0 0 0 0 0 1,250,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $1,250,000 $0 $0 $0 $0 $0 $0 $0 $1,250,000 Internally Funded $350,000 $0 $0 $0 $0 $0 $0 $0 $350,000 Pacific Avenue CSO Project (OF-16) 750,000 200,000 3,000,000 1,400,000 2,800,000 0 0 0 $8,150,000 PWTF Loan 992,000 0 570,000 690,000 2,708,000 0 0 0 4,960,000 SRF Loan 450,000 0 800,000 0 0 0 0 0 1,250,000 Grant 210,000 100,000 1,630,000 0 0 0 0 0 1,940,000 Total Funding $1,652,000 $100,000 $3,000,000 $690,000 $2,708,000 $0 $0 $0 $8,150,000 Internally Funded ($902,000) $100,000 $0 $710,000 $92,000 $0 $0 $0 $0 12 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT Page 4 of 5 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects WW Collection and Trans System Improve - Oyster Bay 0 0 0 0 0 550,000 0 0 $550,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $0 $0 $0 $0 $550,000 $0 $0 $550,000 Anderson Cove 1&1 Study 200,000 0 0 0 0 0 0 0 $200,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 180,000 20,000 0 0 0 0 0 0 200,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $180,000 $20,000 $0 $0 $0 $0 $0 $0 $200,000 Internally Funded $20,000 ($20,000) $0 $0 $0 $0 $0 $0 $0 Tracy ton PS (EB-6) - Construction/Improvement 125,000 0 0 0 0 0 0 0 $125,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 100,000 25,000 0 0 0 0 0 0 125,000 Grant 0 0 0 0 0 0 0 0 0 Total Funding $100,000 $25,000 $0 $0 $0 $0 $0 $0 $125,000 Internally Funded $25,000 ($25,000) $0 $0 $0 $0 $0 $0 $0 Campbell Way Beach Access @ Main Street 50,000 0 0 0 0 0 0 0 $50,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $50,000 $0 $0 $0 $0 $0 $0 $0 $50,000 WWTP Capacity Upgrades 200,000 2,000,000 964,000 0 0 0 0 0 $3,164,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 1,746,000 0 0 0 0 0 0 1,746,000 Total Funding $0 $1,746,000 $0 $0 $0 $0 $0 $0 $1,746,000 Internally Funded $200,000 $254,000 $964,000 $0 $0 $0 $0 $0 $1,418,000 Gravity Belt Thickner 0 200,000 0 0 0 0 0 0 $200,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $0 $200,000 $0 $0 $0 $0 $0 $0 $200,000 13 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT Page 5 of 5 EXHIBIT 2B CAPITAL AND FUNDING DETAIL 2004 2005 2006 2007 2008 2009 2010 2011 Total Total Capital Projects Mise Equipment - Dept. 33 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $80,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $80,000 Quality and Quantity Meters - Dept. 31 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $80,000 PWTF Loan 0 0 0 0 0 0 0 0 0 SRF Loan 0 0 0 0 0 0 0 0 0 Grant 0 0 0 0 0 0 0 0 0 Total Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 Internally Funded $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $80,000 Total Project Costs $3,295,000 $4,180,000 $4,719,000 $2,005,000 $3,720,000 $2,470,000 $5,070,000 $3,070,000 $28,529,000 14 of 31 CITY OF BREMERTON WASTEWATER DEPARTMENT EXHIBIT 2A CAPITAL FUNDING ANALYSIS SUMMARY 2004 2005 2006 2007 2008 2009 2010 2011 Total Beginning Balance $0 $687,000 $453,000 $0 $0 $2,688,000 $3,584,000 $1,847,980 Total Capital Projects Sewer Main Replacement Program $100,000 $150,000 $220,000 $220,000 $350,000 $350,000 $350,000 $350,000 $2,090,000 VWVTP & Pump Station Improvements 150,000 165,000 215,000 215,000 400,000 450,000 450,000 450,000 2,495,000 Fuel Tank Replacements (this rolled up to VWVTP Improv) 0 0 0 0 0 0 0 0 0 Automatic Power Switch Gear (this roll up to VWVTP Improv) 0 0 0 0 0 0 0 0 0 Emergency Power Supply (this rolled up into VWVTP improv) 0 0 0 0 0 0 0 0 0 Washington Street - Beachmain Abandonment 0 0 0 0 0 500,000 2,250,000 2,250,000 5,000,000 KL-1, 2 &* PB-1 Pump Station Upgrade 0 100,000 0 0 0 0 0 0 100,000 New Roof on Control Building 0 15,000 0 0 0 0 0 0 15,000 VWVT Solids Management 0 0 300,000 0 150,000 0 0 0 450,000 Headworks Mechanical Bar Screen 0 100,000 0 0 0 0 0 0 100,000 VWVTP Upgrade/frontage improvements 0 0 0 150,000 0 0 0 0 150,000 Class A Water Filter 0 0 0 0 0 0 0 0 0 Methane Boiler 100,000 0 0 0 0 0 0 0 100,000 Generator 0 750,000 0 0 0 0 0 0 750,000 Outfall 0 0 0 0 0 600,000 0 0 600,000 Digester 0 0 0 0 0 0 2,000,000 0 2,000,000 Water Reuse 0 100,000 0 0 0 0 0 0 100,000 Anderson Cove Basin CSS Project (OF-12) 0 380,000 0 0 0 0 0 0 380,000 Trenton & Cherry Ave Basin CSO Reduc. (OF 7&3) 1,600,000 0 0 0 0 0 0 0 1,600,000 Pacific Avenue CSO Project (OF-16) 750,000 200,000 3,000,000 1,400,000 2,800,000 0 0 0 8,150,000 WW Collection and Trans System Improve - Oyster Bay 0 0 0 0 0 550,000 0 0 550,000 Anderson Cove 1&1 Study 200,000 0 0 0 0 0 0 0 200,000 Tracy!on PS (EB-6) - Construction/lmprovement 125,000 0 0 0 0 0 0 0 125,000 Campbell Way Beach Access @ Main Street 50,000 0 0 0 0 0 0 0 50,000 VWVTP Capacity Upgrades 200,000 2,000,000 964,000 0 0 0 0 0 3,164,000 Gravity Belt Thickner 0 200,000 0 0 0 0 0 0 200,000 Misc Equipment - Dept. 33 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 80,000 Quality and Quantity Meters - Dept. 31 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 80,000 Total Project Costs $3,295,000 $4,180,000 $4,719,000 $2,005,000 $3,720,000 $2,470,000 $5,070,000 $3,070,000 $28,529,000 Less: Funding Sources Annual Rate Funded Capital $600,000 $725,000 $750.000 $750,000 $2.200,000 $2,266,000 $2,333,980 $2,403,999 $12,028,979 System Development Charges 100,000 100,000 100,000 100,000 100.000 100,000 100,000 100,000 800,000 Revenue Bonds 0 0 0 0 0 0 0 0 0 PWTF Loans 992,000 380,000 570,000 690,000 2,708,000 0 0 0 5.340,000 SRF 1,980,000 45,000 800,000 0 0 0 0 0 2,825,000 Transfer from Stormwater 100,000 100,000 100,000 100.000 HJO,OOO 100,000 100,000 100,000 800,000 Interfund Loan 0 0 0 0 0 0 0 0 0 EPA Grants 210,000 2,596,000 1,630,000 0 0 0 0 0 4,4:l6,OOO New Loan 0 0 316,000 365,000 0 0 0 0 B81,OOO Transfer from Working Capital 0 0 0 0 0 0 0 0 0 Total Funding Sources $3,982,000 $3,946,000 $4,266,000 $2,005,000 $5,108,000 $2,466,000 $2,533,980 $2,603,999 $26,910,979 Additional Capital Funding $0 $0 $0 $0 $1,300,000 $900,000 $800,000 $500,000 Ending Capital Fund Balance $687,000 $453,000 $0 $0 $2,688,000 $3,584,000 $1,847,980 $1,881,979 Target Funding; Annual Average Capital or $270,000 $335,000 $455,000 $455,000 $770,000 $820,000 $820,000 $820,000 1.5% of Original Plant Value $1,417,038 15 of 31 CITY OF BREMERTON Wastewater Fund EXHIBIT 3 DEVELOPMENT OF VOLUME ALLOCATION FACTORS CUSTOMER CLASS Residential Residential- Outside Multi-Family Multi-Family - Outside Commercial I Commercial II Commercial III Puget Sound Naval Shipyard (PSNS) Total Flow @ WWTP Allocation Factor Notes: Plus: Total Flow Annual Flow 45% Total Flow Annual Flow % of wlo Navy Annual Flow % of (CCF) [1J 1&1 wI 1&1 (cet) (MGD) Total incl. 1&1 (cct) (MGD) Total 524,825 236,171 760,996 1.56 29.7% 760,996 1.56 33.9% 85,670 38,552 124,222 0.25 4.8% 124,222 0.25 5.5% 660,599 297,270 957,869 1.96 37.4% 957,869 1.96 42.7% 13,567 6,105 19,672 0.04 0.8% 19,672 0.04 0.9% 186,743 84,034 270,777 0.55 10.6% 270,777 0.55 12.1% 29,136 13,111 42,247 0.09 1.6% 42,247 0.09 1.9% 47,329 21,298 68,627 0.14 2.7% 68,627 0.14 3.1% 317,304 0 317,304 0.65 12.4% 0 0.00 0.0% 1,865,173 2,561,714 5.25 100.0% 2,244,410 4.60 100.0% 2003 Annual Flow MGD 5.25 (VOL)-W (VOL)-W/O [1J Class flows taken from utility provided monthly WWTP Reports for Jan to December 2002 16 of 31 CITY OF BREMERTON Wastewater Fund EXHIBIT 4 DEVELOPMENT OF CUSTOMER ALLOCATION FACTORS CUSTOMER CLASS Residential Residential - Outside Multi-Family Multi-Family - Outside Commercial I Commercial II Commercial '" Puget Sound Naval Shipyard (PSNS) Total Allocation Factor Notes: Customer Service & Accounting Number of % of Weighting Weighted % of Billing Units [2] Total Factor [3] Customer Total 7,205 51.4% 1.00 7,205 48.2% 450 3.2% 1.00 450 3.0% 5,415 38.6% 1.00 5,415 36.2% 145 1.0% 1.00 145 1.0% 668 4.8% 2.00 1,336 8.9% 70 0.5% 2.50 175 1.2% 70 0.5% 2.00 140 0.9% 3 0.0% 25.00 75 0.5% 14,026 100% 14,941 100% (AC) (WeA) [2J City provided no. of customers as of December 2002 [3J Weighting factors for "all other customers" ranged from 1.0 for residential, 2.5 for commercial II, 3.0 for commercial III and 25.0 for PSNS. 17 of 31 Wastewater Fund EXHIBIT 5 DEVELOPMENT OF BIOCHEMICAL OXYGEN DEMAND (BOD) AND SUSPENDED SOLIDS (SS) ALLOCATION FACTORS CUSTOMER CLASS Residential Residential- Outside Multi-Family Multi-Family - Outside Commercial I Commercial II Commercial III Puget Sound Naval Shipyard (PSNS) Total Allocation Factor Notes: BOD SS Annual Strength WIO Navy Strength WIO Navy Flow Avg. Factor Calculated %01 Calculated %01 Avg. Factor Calculated % 01 Calculated %01 (CCF) (mg/l) [4] Pounds [5] Total Pounds [5] Total (mg/l) [4] Pounds [5] Total Pounds [5] Total 524,825 200 655,198 24.6% 655,198 30.6% 200 655,198 24.6% 655,198 30.6% 85,670 200 106,951 4.0% 106,951 5.0% 200 106,951 4.0% 106,951 5.0% 660,599 200 824,700 30.9% 824,700 38.5% 200 824,700 30.9% 824,700 38.5% 13,567 200 16,937 0.6% 16,937 0.8% 200 16,937 0.6% 16,937 0.8% 186,743 280 326,385 12.2% 326,385 15.2% 280 326,385 12.2% 326,385 15.2% 29,136 550 100,028 3.7% 100,028 4.7% 550 100,028 3.7% 100,028 4.7% 47,329 375 110,786 4.2% 110,786 5.2% 375 110,786 4.2% 110,786 5.2% 317,304 266 526,848 19.7% 0 0.0% 266 526 848 19.7% 0 0.0% 1,865,173 2,667,833 100.0% 2,140,985 100.0% 2,667,833 100.0% 2,140,985 100.0% 7,309 Ibs per day 7,306 Annual Avg (BOD) 7,309 Ibs per day 7,312 Annual Avg (SS) (SS-Navy) (BOD-Navy) [4J Strength factors assumed, based on discussions with City staff BOD strength factors for "all other customers" ranged from 200 - residential to 280-550 - commercial I, II, 11/ and 266 for PSNS. SS strength factors ranged from 200 - residential to 280-550 - commercial I,ll III and 266 for PSNS. [5J Calculated Pounds = (CCF' 748) , Strength Factor' (8.345Ibs / One Million Gallons) 18 of 31 CITY OF BREMERTON Wastewater Fund EXHIBIT 6 DEVELOPMENT OF REVENUE RELATED ALLOCATION FACTORS CUSTOMER CLASS Residential Residential - Outside Multi-Family Multi-Family - Outside Commercial I Commercial II Commercial III Puget Sound Naval Shipyard (PSNS) Total Allocation Factor Total Rate Revenues $2,479,869 423,935 2,966,898 66,771 930,538 1/8,265 234.688 1,796,128 $9,077,092 % of Rate Revenue % of Total w/o PSNS Total 27.3% $2,479,869 34.1% 4.7% 423,935 5.8% 32.7% 2,966,898 40.7% 0.7% 66,771 0.9% 10.3% 930,538 12.8% 2.0% 178,265 2.4% 2.6% 234,688 3.2% 19.8% 0 0.0% 100% $7,280,964 100% (RR) (RR-PSNS) 19 of 31 ciTY OF BREMERTON Page 1 of2 Wastewater Fund EXHIBIT7 FUNCTIONALIZATION ANO CLASSIFICATION OF PLANT IN SERVICE Strength Related Bio-oxygen Suspended CUstomer Revenue Total Plant Volume (VOL) Demand (BOD) Solids (88) Actual W',~~~ Related Direct AssiQnment Acet. No. Account Desa. as of 12/02 wI Naw wfo Navv wI Navv w/o Navv w/Nav w/o Navv lAC (RR Navv All other Basis of Classification 1937 Land $184,309 $184,309 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 100.0% VoVw Navy Collection Plant Building & Structures $21,074 $21,074 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 100,0% VOL-wI 0.0% DA-Navy 170 Other Improvements 2,922,238 2,922,236 0 0 0 0 0 0 0 0 0 0 100.0% VOL-wI 0,0% DA.Navy \79 Mains 22,581,385 22,581,385 0 0 0 0 0 0 0 0 0 0 100.0% VOL-wI 0.0% DA-Navy '79 Laterals 1,757,255 0 1,757,255 0 0 0 0 0 0 0 0 0 100.0% VOL-w/o 0.0% DA-Navy 110 Manholes 4,901,881 4,901,881 0 0 0 0 0 0 0 0 0 o ' 100,0% VOL~I 0.0% DA~Navy 170 Interceptor 308,951 308,951 0 0 0 0 0 0 0 0 0 0 100,0% VOL-wI 0.0% DA.Navy Storm Sewer/Catchbasin 11,348,430 11,348,430 0 0 0 0 0 0 0 0 0 0 100.0% VQL-wl 0.0% DA-Navy Machinery & Equipment 309,428 309,428 0 0 0 0 0 0 0 0 0 . 0 100.0% VOL-wI 0.0% DA-Navy 188.1\ General Assets 84,991 84991 0 0 0 0 0 0 0 0 0 0 100.0% VOL-wI 0.0% DA-Navy Total CollectionfTransmission $44,235,631 $42,478,375 $1,757,255 $0 $0 $0 $0 $0 $0 $0 $0 $0 Pumping Plant '" Land $71,724 $71,724 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 100.0% Vol/w Navy '" Building & Structures 5,950,815 5,950,815 0 0 0 0 0 0 0 0 0 0 100.0% VoUwNavy "9 Other Improvements 743,236 743,236 0 0 0 0 0 0 0 0 0 0 100.0% Vollw Navy '"' Machinery & EqUipment 5,611,307 5,611,307 0 0 0 0 0 0 0 0 0 0 100.0% Vollw Navy 1886 General Assets 258,912 258,912 0 0 0 0 0 0 0 0 0 0 100.0% Vollw Navy Total Pumping Plant $12,635,994 $12,635,994 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Treatment Plant land $451,872 $0 $225,936 $0 $70,040 $0 $67,781 $0 $0 $0 $88,115 $0 SO% VQI~w/o, 15.S% BOD-w/o, 1S% SS~w!o, 19.5 oA-Navy Building & Structures 20 ,S56, 1 66 0 10,278,083 0 3,186,206 0 3,083,425 0 0 0 4,008,452 o SO% Vol-w/o, 15.5% BOo-w/o, 15% SS-w/o, 19.5 DA-Navy "" Other Improvements 2,287,022 0 1,143,511 0 354,488 0 343,053 0 0 0 44S,969 o 50% Vol-w/o, 15.5% BOo-w/o, 15% S5-w/o, 19.5 oA-Navy '"" Machinery & Equipment 10,859,710 0 5,429,855 0 1,683,255 0 1,628,957 0 0 0 2,117,643 o SO% Vol-w/o, 15.5% BOD-w/o, 15% 5S-wlo, 19.5 DA-Navy General Assets 367 054 0 183,527 0 56,893 0 55058 0 0 0 71576 o 50% Vol-w/o, 15.5% BOD-w/o, 15% 55-w/o, 19.5 oA-Navy Total Treatment Plant $34,521,824 $0 $17,260,912 $0 $5,350,883 $0 $5,178,274 $0 $0 $0 $6,731,756 $0 Total Plant before General Plant $91,577,758 $55,298,679 $19,018,167 $0 $5,350,883 $0 $5,178,274 $0 $0 $0 $6,731,756 $0 100.0% 60.4% 20.8% 0.0% 5.8% 0.0% 5.7% 0.0% 0.0% 0.0% 7.4% 0.0% General '" Land $93,029 $55,175 $19,320 $0 $5,436 $0 $5,260 $0 $0 $0 $6,838 $0 As Plant in Service '" Buildings & Structures 2,230,207 1 ,346,697 463,152 0 130,311 0 126,107 0 0 0 163,939 o /J.s Plant in Service '" Other Improvements 325,348 196,459 67,566 0 19,010 0 18,397 0 0 0 23,916 o h, Plant In Service 1688 General Assets 242,878 146,660 50439 0 14191 0 13734 0 0 0 17 854 o As Plant In Service Total General Plant $2,891,462 $1,745,992 $600,477 $0 $168,948 $0 $163,498 $0 $0 $0 $212,547 $0 Total Plant in Service $94,489,220 $57,044,671 $19,618,644 $0 $5,519,831 $0 $5,341,772 $0 $0 $0 $6,944,303 $0 % Plant in Service 100.0% 60.4% 20.8% 0.0% 5.8% 0.0% 5.7% 0.0% 0.0% 0.0% 7.4% 0.0% Less: Accumulated Oepreciation 1919 Intangible $84,301 $84,301 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Land 17. Buildings & Structures 7,128,382 1,814,078 2,882,457 0 822,073 0 795,555 0 0 0 1,034,221 o /J.s Bldgs & struc. '"' Other Improvements 12,564,559 11,453,098 790,571 0 99,476 0 96,267 0 0 0 125,147 o As Other Improv.less oA Navy [1] '"' Machinery & Equipment 7,054,557 7,054,557 0 0 0 0 0 0 0 0 0 o /J.s Mach & EClUIP. '"' General Assets 376,220 193,492 92,283 0 28,038 0 27,133 0 0 0 35,273 o As General Assets Aceum Depree. on Navy Contributions [1] 898975 0 0 0 0 0 0 0 0 0 898975 0 Total Depreciation $28,106,994 $20,599,525 $3,545,311 $0 $949,587 $0 $918,955 $0 $0 $0 $2,093,616 $0 Net Plant In Service $66,362,226 $36,445,146 $16,073,333 $0 $4,570,244 $0 $4,422,817 $0 $0 $0 $4,850,687 $0 100.0% 54.9% 24.2% 0.0% 6.9% 0.0% 6.7% 0.0% 0.0% 0.0% 7.3% 0.0% 20 of 31 ciTY OF BREMERTON Wastewater Fund EXHIBIT 1 FUNCTIONALIZATION ANO CLASSIFICATION OF PLANT IN SERVICE Acct. No. Account Desc. Plus Cash Working Capital 1/8 O&M Expense Prepayments Inventories (materials and supplies) Total Cash Working Capital Less: Contrib in Aid of Constn.lction [2] Less: Net Navy Capital Charges [3] Net Contributions In Aid of Construction NET RATE BASE Page 20f2 Strength Related Bia-oxygen Suspended Customer Revenue Total Plant Volume (VOl) Demand (800) Solids (SS) A:~~: Weighted Related Direct Assif:lnment as of 12/02 wI Naw wlo Navv wI Navv wlo NavY wi Navv wlo Navv IWCAl IRR Navv All other BasIs of Classification $578,609 9336,358 9120,681 90 $34,314 $0 $33,207 $17,629 $0 $0 $36,420 $0 As Q&M Expenliies 0 0 0 0 0 0 0 0 0 0 0 o As O&M Expenaes 343,061 207,155 71,244 0 20,045 0 19,398 0 0 0 25,218 o As Other Improv. $921,670 9543,513 $191,925 $0 $54,359 $0 $52,606 $17 ,629 $0 $0 $61,638 $0 $34,362,544 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2.609.709 $31.752,835 As DA All Other; Navy Id'd CIA 4 597 525 0 0 0 0 0 0 0 0 0 0 4597525 A.s DA All Other $29,765,019 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,609,709 $27.155,310 $31,518,877 $36,988,660 $16,265,258 $0 $4,624,603 $0 $4,415,422 $11,629 $0 $0 $2,302,615 1$21,155,310) 100.0% 98.6% 43.4% 0.0% 12.3% 0.0% 11.9% 0.0% 0.0% 0.0% 6.1% -72.4% [1] Adjustment to accumulated depreciation to ensure that a negative rate base does not result from the treatment of CIAC. (2] Contributions in aid of contruction assigned to the Navy include the amortized amount for the Navy's capital contribution to the WNrP and WWTP improvements = Navy's "true" capital contribution [3] Net navy capital charges IS deducted from contributions in aid to indicate that this capital payment was to compensate the City for capital costs and is not a "true" capital contribution and should not be used to reduce rate base. Prior Study Contribution 5,600,796 762,405 total year amort 7 1,003,271 136,570 /year amort (Ci2 2.559% 143,324 19,510 21 of 31 CITY OF BREMERTON Wastewater Fund EXHIBIT 8 ALLOCA TION OF RATE BASE Residential Residential Multi Family Multi Family Basis of Classification Comoonent Rate Base Inside Outside Inside Outside COMMI COMMII COMMIII PSNS Allocation Volume Related Volume - wlNavy $36,988,660 $10,988,046 $1,793,638 $13,830,690 $284,Q47 $3,909,762 $610,008 $990,908 $4,581,561 (VOL) Volume - wlo Navy 16,265,258 5,514,946 900,234 6,941,681 142,564 1,962,326 306,166 497,341 0 Total Volume Related $53,253,917 $16,502,992 $2,693,872 $20,772,371 $426,611 $5,872,087 $916,174 $1,488,249 $4,581,561 Strength Related Bio-oxygen Demand - With Navy $0 0 0 0 0 0 0 0 0 (BOD) Sio-oxygen Demand - Without Navy $4,624,603 1,415,250 231,019 1,781,380 36,585 705,003 216,063 239,303 0 Suspended Solids - With Navy 0 0 0 0 0 0 0 0 0 (55) Suspended Solids - Without Navy 4,475,422 1,369,597 223,567 1,723,916 35,405 682,261 209,094 231,583 0 Total Strength Related $9,100,025 2,784,847 454,585 3,505,296 71,990 1,387,264 425,157 470,886 0 Customer Related Actual $17,629 $9,056 $566 $6,806 $182 $840 $88 $88 $4 (AC) Weighted 0 0 0 0 0 0 0 0 0 (WCA) Total Customer Related $17,629 $9,056 $566 $6,806 $182 $840 $88 $88 $4 Revenue Related $0 $0 $0 $0 $0 $0 $0 $0 $0 (RR) Direct Assignments Direct Assignment - Navy $2,302,615 $0 $0 $0 $0 $0 $0 $0 $2,302,615 (DA) Direct Assignment - All other (27,155,31 Q) (9,067,539) (1,479,714) 111,411,184) 1234,376) 13,411,537) 1630,328) 1920,631 ) 0 Total Direct Assignment ($24,852,694) ($9,067,539) ($1,479,714) ($11,411,184) ($234,376) ($3,411,537) ($630,328) ($920,631 ) $2,302,615 --....--------- Total Allocated Rate Base $37,518,877 $10,229,355 $1,669,309 $12,873,290 $264,407 $3,848,654 $711,091 $1,038,591 $6,884,180 100.0% 27.3% 4.4% 34.3% 0.7% 10.3% 1.9% 2.8% 18.3% 22 of 31 CITY OF BREMERTON EXHIBIT 9 FUNCTIONALlZATION AND CLASSIFICATION OF EXPENSES Page 1 of 3 Blo-oxygen 8uspended Customer Revenue Req. Volume {VOLl Demand mODI Solids (88) A~~U;: W~~6~d Revenue Related Direct AsslQnment Acct. No. Account Descrintlon 2004 wi Na~ wlo Navv wi Navv wlo Navv wI Navv w/o Navv (RR (RR-PSNS Nav All Other BasIs of Classification 451.31 Water Resources X.X.535.5031 Maintenance XXX.51.001 Reallocated Labor Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Plant in Service X.X.X.53121 Office & Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service XXX53.510 UtIlity Inventory 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service XXX.53.530 Small Tools & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service XX.x.S4810 Computer Related Items 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.x.X.S4910 Equipment Repair 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service XXX.54.000 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.XXS4.220 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in ServIce X.X.X.S4.520 Postage 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.X.S4.810 EqUipment Rental 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.x.S4910 Equipment Repair 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service Total Maintenance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 XX535.7031 Customer Service XXX.51.00l Reallocated Labor Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 100% AC X.XX.53.120 Office & Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 0 0 100% AC XXX54.000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.54.110 Professional Services 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.X.54.220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 100% AC X.X.X.54.300 Travel 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service XXX54.910 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service Total customer Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 X.x.535.B031 Operations XXX51.001 Reallocated Labor Costs $93,917 $51,576 $22,747 $0 $6,468 $0 $6,259 $0 $0 $0 $0 $6,665 $0 As Plant In Service XXX.53.110 Operating Supplies 10,000 5,492 2,422 0 669 0 666 0 0 0 0 731 o As Plant in Service X.X.X.53.121 Utility Inventory 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.53.510 Small Tools & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.53.530 Computer Related Items 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service XXX.54.000 Reallocated Vehicle Costs 4,212 2,313 1,020 0 290 0 261 0 0 0 0 306 o As Plant in Service X x.x.54.11o ProfeSSional Services 25,000 13,730 6,055 0 1,722 0 1,666 0 0 0 0 1,627 o As Plant In Service X X.x.54.2l0 Telecommunications 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.x.X.54.220 Postage 1,000 549 242 0 69 0 67 0 0 0 0 73 o As Plant in Service X.x X 54.300 Travel 500 275 121 0 34 0 33 0 0 0 0 37 o As Plant In Service XXX 54.400 AdvertiSing 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service XXX.54.gi0 Miscellaneous 1,000 549 242 0 69 0 67 0 0 0 0 73 o As Plant In Service Total Operations $135,629 $74,485 $32,850 $0 $9,341 $0 $9,039 $0 $0 $0 $0 $9,914 $0 Total Water Resource Manager $135,629 $74,485 $32,850 $0 $9,341 $0 $9,039 $0 $0 $0 $0 $9,914 $0 451.32 Wastewater Manager X X.535.5032 Maintenance X.X.X.5i.001 Reallocated Labor Costs $558,841 $306,907 $135,355 $0 $38,486 $0 $37,245 $0 $0 $0 $0 $40,848 $0 As Plant In Service X.X.X.53.110 Office & Operating Supplies 150,000 82,378 36,331 0 10,330 0 9,997 0 0 0 0 10,964 o As Plant in Service X.X.X.53.210 Fuel 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.53.5i0 Small Tools & EqUipment 40,000 21,967 9,688 0 2.755 0 2,666 0 0 0 0 2,924 o As Plant in Service X.X.X.53.530 Computer Related Items 20,000 10,984 4,844 0 1,377 0 1,333 0 0 0 0 1,462 o As Plant in ServIce X.X.X.54.000 Reallocated Vehicle Costs 17,939 9,852 4,345 0 1,235 0 1,196 0 0 0 0 1,311 o As Plant in Service X.X.X.54.1i0 Professional Services 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X X.X.54.300 Travel 1,500 824 363 0 103 0 100 0 0 0 0 110 o As Plant In Service X.X.X.54.520 Equipment 9,000 4,943 2,180 0 620 0 600 0 0 0 0 658 o As Plant In Service x X.X.54.740 Garbage 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.54.810 Equipment Repair 100,000 54,919 24,221 0 6,887 0 6,665 0 0 0 0 7,309 o As Plant In Service X.X.X.54.B30 Structures & Grounds Repair 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.x.X.54.919 Miscellaneous 3000 1,648 727 0 207 0 200 0 0 0 0 219 o As Plant in Service Total Maintenance $900,280 $494,420 $218,053 $0 $62,001 $0 $60,001 $0 $0 $0 $0 $65,805 $0 Strength Related 23 of 31 Page 2 of3 CITY OF BREMERTON EXHIBIT 9 FUNCTIONALlZATION AND CLASSIFICATION OF EXPENSES Strength Related BioMoxygen Suspended Customer Revenue Req. Volume (VOLI Demand IBOO) Solids (SS) Actual W~~~~d Revenue Related Direct AssiQnment Acct, No. Account Descri tlon 2004 wI Naw w/c Naw wlNav wlo Navv wI Naw wlo Naw AC RR RR-PSNS Nav All Other Basis of Classification X.X.SJS.8032 Operations X.X.X.51.001 Reallocated Labor Costs $626,276 $343,941 $151,6B8 $0 $43,130 $0 $41,739 $0 $0 $0 $0 $45,777 $0 As Plant in Service X.X.X.53,110 Office & Operating Supplies 1B1,000 99,403 43,839 0 12,465 0 12,063 0 0 0 0 13,230 o As Plant. wI Navy X.X.X.S3210 Fuel 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service x.x.X.SJ.Sl0 Small Tools & Equipment 11,000 6,041 2,664 0 758 0 733 0 0 0 0 804 o As Plant in Service XX.X.53.S30 Computer Related Items 70,000 38,443 16,954 0 4,821 0 4,665 0 0 0 0 5,117 o As Plant in Service X.x.X.S4.000 Reallocated Vehicle Costs 21,229 11,659 5,142 0 1,462 0 1,415 0 0 0 0 1,552 o As Plant in Service X.X.X.54.110 ProfeSSional Services 100,000 54,919 24,221 0 6,887 0 6,665 0 0 0 0 7,309 o As Plant 11'1 Service X.X.X.54.210 Telecommunications 48,000 25,361 11,626 0 3,306 0 3,199 0 0 0 0 3,509 o As Plant in Service X.x.x.54.220 Postage 2,600 1,428 530 0 179 0 173 0 0 0 0 190 o As Plant in Service X.X.X,S4.300 Travel 6,000 3,295 1,453 0 413 0 400 0 0 0 0 439 o As Plant in Service X.X.X.54 <100 Advertising 2,000 1,098 484 0 138 0 133 0 0 0 0 145 o A5 Plant in SeMce X.X.X.54.520 Rents - Equipment 3,500 1,922 848 0 241 0 233 0 0 0 0 256 o As Plant 11'1 Service XX.X.5<1.710 Natural Gas 8,000 4,393 1,938 0 551 0 533 0 0 0 0 585 o As Plant in Service X.X.X.54.720 Electricity 475,000 475,000 0 0 0 0 0 0 0 0 0 0 o 100.0% VOL wI Navy X.X.X.54.no WeterlSewerlstormwater 65,000 35,697 15,743 0 4,476 0 4,332 0 0 0 0 4,751 o As Plant In Service XX.X.54.740 Garbage 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.5<1.810 Equipment Repair 22,782 12,512 5,518 0 1,569 0 1,518 0 0 0 0 1,665 o As Plant in Service X.X.X.54.910 Miscellaneous 55,000 30205 13321 0 3,788 0 3,666 0 0 0 0 4,020 o As Plant in Service Total Operations $1,697,387 $1,146,317 $296,070 $0 $84,184 $0 $81,468 $0 $0 $0 $0 $89,349 $0 Total Wa5tewater Manager $2,597,667 $1,640,737 $514,123 $0 $146,184 $0 $141,469 $0 $0 $0 $0 $155,154 $0 451.32 Utility Openltions X.X.535.50J3 Maintenance X.x.x.51.001 Reallocated Labor Costs $448,929 $246,545 $108,733 $0 $30,917 $0 $29,920 $0 $0 $0 $0 $32,814 $0 As Plant In Service X.X.x.53.110 Operating Supplies 30,000 16,476 7,266 0 2,066 0 1,999 0 0 0 0 2,193 o As Plant in Service X.XX.53.121 Utility Inventory 7,000 3,844 1,695 0 482 0 467 0 0 0 0 512 o As Plant in Service X.XX.53.510 Small Tools & EqUipment 10,000 5,492 2,422 0 6B9 0 666 0 0 0 0 731 o As Plant in Service X.x.x.53.530 Computer Related Items 4,000 2,197 969 0 275 0 267 0 0 0 0 292 o As Plant in Service X.x.X54.000 Reallocated Vehicle Costs 107,106 58,821 25,942 0 7,376 0 7,138 0 0 0 0 7,829 o As Plant in Service X.X.X.54,110 Professional Services 2,000 1,098 484 0 138 0 133 0 0 0 0 146 o As Plant In Service X.X.X.5<1.210 Telecommunications 70D 384 170 0 48 0 47 0 0 0 0 51 o As Plant in Service X.x.x.5<1.220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.x.54.300 Travel 1,000 549 242 0 69 0 67 0 0 0 0 73 o As Plant in Service X.X.X.54.520 Equipment 2,000 1,098 484 0 138 0 133 0 0 0 0 146 o As Plant in Service X.X.x.54.520 Rents. EqUIpment 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.X.54.7.40 Garbage 6,000 3,295 1,453 0 413 0 4DO 0 0 0 0 439 o As Plant 11'1 Service X.X.X.54.e10 EqUipment Repair 5,000 2,746 1,211 0 344 0 333 0 0 0 0 365 o As Plantin Service X.x.X54.~2Q Repairs 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.X.54.910 Miscellaneous 10,000 5,492 2,422 0 689 0 666 0 0 0 0 731 o As Plant 11'1 Service Total Mall'ltenance $633,735 $348,038 $153,494 $0 $43,644 $0 $42,236 $0 $0 $0 $0 $46,322 $0 X X.S35.703J Customer Service X.X.X51.001 Reallocated Labor Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 100% AC X.X.X.54.000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service Total Gust Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Utility Operations $533,735 $348,038 $153,494 $0 $43,644 $0 $42,236 $0 $0 $0 $0 $46,322 $0 451.35 Wastewater Administration X.X535.10J5 Administration XXX.51.001 Reallocated Labor Costs $105,501 $57,940 $25,553 $0 $7,266 $0 $7,031 $0 $0 $0 $0 $7,712 $0 As Plant in Service X.X.X53.110 Office & Operating Supplies 1,200 659 291 0 83 0 80 0 0 0 0 88 o As Plant in Service X.X.X.53.510 Small Tools & Equipment 0 0 0 0 0 0 0 0 0 0 0 0 a As Plant In Service X.x.X.53.530 Computer Related Items 500 275 121 0 34 0 33 0 0 0 0 37 o As Plant In Service X.XX.54.000 Reallocated Vehicle Costs 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.X.x.S.4.110 ProfeSSional Services 10,000 5,492 2,422 0 689 0 666 0 0 0 0 731 o As Plant in Service X.x.X5<1,119 IFD Professional Services 276,268 151,722 66,914 0 19,026 0 18.412 0 0 0 0 20,194 o As Plant In Service X.x.X.54.210 Telecommunications 8,000 4,393 1,938 0 551 0 533 0 0 0 0 585 o A5 Plant in Service X.X.X.54.220 Postage 4,500 2,471 1,090 0 310 0 300 0 0 0 0 329 o As Plant in Service X.X.X.54.300 Travel 1,500 824 363 0 103 0 100 0 0 0 0 110 a As Plant In Service X.X.X.5.4..400 Advertising 250 137 61 0 17 0 17 0 0 0 0 18 o As Plant in Service X.X.X54520 EqUipment Rental 2,554 1,403 619 0 176 0 170 0 0 0 0 167 o As Plant in Service X.X.X.54.510 Rents - Land & BUildings 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.XX.54.619 IFD Insurance Premiums 201,818 110,835 48,882 0 13,899 0 13,450 0 0 0 0 14,752 o As Plant in Service X,X.X.54.620 Claim Payments 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.X.54.7<10 Garbage 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X.X.X.54.el0 Equipment Repair 650 357 157 0 45 0 43 0 0 0 0 48 o As Plant in Service X.X.X.54.910 Miscellaneous 5,000 2746 1,211 0 344 0 333 0 0 0 0 365 o As Plant in Service Total Administration $617,741 $339,254 $149,621 $0 $42,543 $0 $41,170 $0 $0 $0 $0 $45,153 $0 24 of 31 CITY OF BREMERTON Page 3 of 3 EXHIBIT 9 FUNCTlONALlZATlON AND CLASSIFICATION OF EXPENSES Strength Related Bio-oxygen Suspended Customer Revenue Req. Volume (VOU Demand IBOD) Solids (S5) A;lU;: W~~~~d Revenue Related Direct AsslQnment Acct. No Account DescrI tlon 2004 wi Navy w/o NavY wi Naw w/o Navv wi Nav"V. wlo Naw RR RR-PSNS> Naw All other BasIs of Classification X.X.535.7035 Customer Service X.X.X.51.001 Reallocated Labor Costs $133,505 $0 $0 $0 $0 $0 $0 $133,505 $0 $0 $0 $0 $0 100% AC X.X.X.53.110 Office & Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service X.x.X.54 000 Reallocated Vehicle Costs 4,091 2,247 991 0 282 0 273 0 0 0 0 299 o As Plant in Service X.X.X.54.110 Professional Services 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service XXX.54.119 IFD Professional SerNces 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant In Service X X X 54.220 Postage 0 0 0 0 0 0 0 0 0 0 0 0 0 100% AC XXX54.300 Travel 825 453 200 0 57 0 55 0 0 0 0 60 o A6 Plant in Service X.XX54.910 Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service Total Customer Service $138,421 $2,700 $1,191 $0 $339 $0 $328 $133,505 $0 $0 $0 $359 $0 0 Total Wastewater Administration $756,162 $341,954 $150,811 $0 $42,881 $0 $41,498 $133,505 $0 $0 $0 $45,513 $0 Wastewater Engineering X.X.535.8037 Operations XX.X51.001 Reallocated Labor Costs $226,545 $124,415 $54,871 $0 $15,602 $0 $15,098 $0 $0 $0 $0 $16,559 $0 As Plant in Service X.X.X.53.110 Office & Operating Supplies 3,000 1,648 727 0 207 0 200 0 0 0 0 219 o As Plant In Service X.X.X.53510 Small Tools & Equipment 1,900 1,043 460 0 131 0 127 0 0 0 0 139 o As Plant in Service XXX 54530 Computer Related Items 7,000 3,844 1,695 0 482 0 467 0 0 0 0 512 o As Plant in Service X.X'x'54.000 Reallocated Vehicle Costs 8,016 4,402 1,942 0 552 0 534 0 0 0 0 586 o As Plant in Service X.XX.54110 Professional Services 0 0 0 0 0 0 0 0 0 0 0 0 o As Plant in Service xxx 54220 Postage 125 69 30 0 9 0 8 0 0 0 0 9 o As Plant In Service X.X.X.54300 Travel 2,000 1,098 484 0 138 0 133 0 0 0 0 146 o As Plant In Service X.X.X.54400 AdvertiSing 2,500 1,373 606 0 172 0 167 0 0 0 0 183 o As Plant in Service X.X.X.54520 Rents ~ Equipment 1,800 989 436 0 124 0 120 0 0 0 0 132 o As Plant In SefYIce XXX.54810 Equipment Repair 1,700 934 412 0 117 0 113 0 0 0 0 124 o As Plant in Service X.X.X.54910 Miscellaneous 4,000 2,197 969 0 275 0 267 0 0 0 0 292 o As Plant in Service Total Engineering Operations $258,586 $142,012 $62,631 $0 $17,80. $0 $17,234 $0 $0 $0 $0 $18.901 $0 TOTAL O&M EXPENSES $4,3.1,779 $2,547,226 $913,910 $0 $259,858 $0 $251,476 $133,505 $0 $0 $0 $275,804 $0 TaxeslTransfer Payments Intergovernmental Service $239,246 $0 $0 $0 $0 $0 $0 $0 $0 $239,246 $0 $0 $0 100% RR ~ayment in Lieu ofTaxes 771,553 0 0 0 0 0 0 0 0 771,553 0 0 0 100% RR Total Taxes/Transfer Payments $1,010,799 $0 $0 $0 $0 $0 $0 $0 $0 $1,010,799 $0 $0 $0 Depreciation Expense S2,~41.602 1,231,054 542,930 154,375 149,395 163,848 o As Plant in Service - 2002 Depree. Net O&M Plus Depreciation $7,634,180 $3,778,280 $1,456,839 $0 $414,233 $0 $400,871 $133,505 $0 $1,010,799 $0 $439,652 $0 25 of 31 CITY OF BREMERTON Wastewater Fund EXHIBIT 10 ALLOCATION OF THE REVENUE REQUIREMENT Residential Residential Multi Family Multi Family Classification Comoonent Revenue Reo. Inside Outside Inside Outside COMMI COMMII COMMIII PSNS Volume Related Volume - wlNavy $3,778,280 $1,122,396 $183,215 $1,412,763 $29,015 $399,370 $62,311 $101,218 $467,993 Volume - w/o Navy 1456,839 493,960 80 632 621,749 12 769 175761 27,423 44,546 0 Total Volume Related $5,235,120 $1,616,356 $263,846 $2,034,513 $41,784 $575,131 $89,733 $145,764 $467,993 Strength Related Bio-oxygen Demand - With Navy $0 0 0 0 0 0 0 0 0 Bio-oxygen Demand - Without Navy 414,233 126,766 20,693 159,561 3,277 63,148 19,353 21,435 0 Suspended Solids - With Navy 0 0 0 0 0 0 0 0 0 Suspended Solids - Without Navy 400,871 122,677 20,025 154,414 3,171 61,111 18,729 20,743 0 Total Strength Related $815,104 249,443 40,718 313,975 6,448 124,260 38,082 42,178 0 Customer Related Actual $133,505 $68,580 $4,283 $51,542 $1,380 $6,358 $666 $666 $29 Weighted 0 0 0 0 0 0 0 0 0 Total Customer Related $133,505 $68,580 $4,283 $51,542 $1,380 $6,358 $666 $666 $29 Revenue Related Revenue Related - All $1,010,799 $276,151 $47,208 $330,385 $7,435 $103,622 $19,851 $26,134 $200,012 Revenue Related - wlo PSNS 0 0 0 0 0 0 0 0 0 Total Revenue Related $1,010,799 $276,151 $47,208 $330,385 $7,435 $103,622 $19,851 $26,134 $200,012 Direct Assignments Direct Assignment - Navy $439,652 $0 $0 $0 $0 $0 $0 $0 $439,652 Direct Assignment - All Other 0 0 0 0 0 0 0 0 0 Total Direct Assignment $439,652 $0 $0 $0 $0 $0 $0 $0 $439,652 Total Allocated Revenue Requirement $7,634,180 $2,210,530 $356,056 $2,730,415 $57,047 $809,371 $148,332 $214,742 $1,107,685 26 of 31 Basis of Allocation (VOL) (BOD) (SS) (AC) (WCA) (RR) (RR-PSNS) (DA) CITY OF BREMERTON Wastewater Fund EXHIBIT 11 DEVELOPMENT OF THE RETURN COMPONENT Residential Residential Multi Family Multi Family Total Inside Outside Inside Outside COMMI COMMII COMMIII PSNS Notes/Reference Present Rate Revenues $9,077,092 $2,479,869 $423,935 $2,966,898 $66,771 $930,538 $178,265 $234,688 $1,796,128 Exhibit 6; Revenue Related Allocation Factor Less: Expenses 7,634,180 $2,210,530 $356,056 $2,730,415 $57,047 $809,371 $148,332 $214,742 $1,107,685 Exhibit 10; Allocation of Rev. Requirements Net Income $1,442,912 $269,339 $67,879 $236,483 $9,724 $121,167 $29,933 $19,946 $688,443 Difference of Lines Above Rate Base $37,518,877 $10,229,355 $1,669,309 $12,873,290 $264,407 $3,848,654 $711,091 $1,038,591 $6,884,180 Exhibit 9; Allocation of Rate Base % Rate of Return 7.19% 6.92% 9.001l/0 6.92% 9.00% 6.92% 6.92% 6.92% 7.805% See Footnote [1J Return Component $2,698,202 $708,139 $150,238 $891,168 $23,797 $266,427 $49,226 $71,898 $537,310 Rate Base (x) Rate of Return Total Net Revenue Requirement $10,332,382 $2,918,669 $506,294 $3,621,583 $80,844 $1,075,798 $197,559 $286,640 $1,644,995 Current Expenses (+) Return Component Plus; Additional Taxes $176,905 $49,972 $8,668 $62,007 $1,384 $18,419 $3,382 $4,908 $28,165 6% Interfund & 3.852% Excise Tax on Add', Rev. Total Revised Revenue Requirements $10,509,287 $2,968,641 $514,962 $3,683,590 $82,228 $1,094,218 $200,941 $291,548 $1673,160 Total Rev. Req. (+) Intergovtllnterfund $ Difference ($1,432,195) ($488,772) ($91,027) ($716,692) ($15,457) ($163,680) ($22,676) ($56,860) $122,968 Present Rates (-) Revised Rev. Requirement % Difference 15.8% 19.7% 21.5% 24.2% 23.1% 17.6% 12.7% 24.2% -6.8% $ Difference (I) Present Rate Revenues [1] See Rate of Return Worksheet 27 of 31 CITY OF BREMERTON EXHIBIT 12 AVERAGE UNIT COSTS Residential Residential Multi Family Multi Family Total Inside Outside Inside Outside COMMI COMMII COMMIII PSNS Volume Costs - $ / eef $2.81 $3.08 $3.08 $3.08 $3.08 $3.08 $3.08 $3.08 $1.47 Strength Costs - $ / eef $0.44 $0.48 $0.48 $0.48 $0.48 $0.67 $1.31 $0.89 $0.00 RevenuelDireet - $ / eef $0.78 $0.53 $0.55 $0.50 $0.55 $0.55 $0.68 $0.55 $2.02 Return Component $1.45 $1.35 $1.75 $1.35 $1.75 $1.43 $1.69 $1.52 $1.69 Total $/ eef $5.47 $5.43 $5.86 $5.40 $5.86 $5.73 $6.76 $6.04 $5.18 Customer Costs - $ / Cust. / mo. $0.79 $0.79 $0.79 $0.79 $0.79 $0.79 $0.79 $0.79 $0.79 Average Total Costs - $ / eef $5.54 $5.56 $5.91 $5.48 $5.96 $5.76 $6.78 $6.06 $5.18 Basic Data - Billed Annual Flow - cd 1,865,173 524,825 85,670 660,599 13,567 186,743 29,136 47,329 317,304 Number of Customers 14,026 7,205 450 5,415 145 668 70 70 3 28 of 31 Specifically, the proposed definitions for determining the rate of return for rate setting purposes is as follows: "The Rate of Return allowed under this contract shall be the City's cost of debt plus a risk premium of2.5%. The rate of return will be reviewed in any cost of service study prepared by the City for its utilities throughout the life of this contract. The rate of return shall also meet the following tests: I) It shall be the greater of: a. The City's cost of embedded debt plus 2.5%, or b. The City's current cost of non-subsidized borrowing plus 2.5% 2) It shall always be greater than or equal to the rate of return for in-City retail customers (owner customers), but less than or equal to the rate of return for outside city customers 3) It shall always be greater than or equal to zero The City's "cost of borrowing" shall be the numerical (simple) average of at least three recent debt issues (within the previous 90 days if possible) in the marketplace for municipal entities with similar terms and credit ratings. The City's "cost of embedded debt" shall be the weighted average of all non-subsidized outstanding debt for the combined utilities. These indexes shall be submitted to the Navy for review and comment prior to use in a future CO SA prepared by the City." 29 of 31 1994 Water/Sewer Revenue 1994 Water/Sewer Revenue 2005 Water/Sewer Revenue 2002 Lease Purchase Pitney Bowes CC Total Weighted Average Interest Cost Plus: Risk Premium of 2.5% Maturity Date 09/01/06 09/01/07 6/31/05 4/30/07 Interest Rate 5,1 5,5 5,1 7,3 Test 1 Total Rate of Return ~ Current Debt + Risk Premium Current Cost of Borrowing Plus: Risk Premium of 2,5% Total Rate of Return ~ Cost of Borrowing + Risk Premium Test 2 Rate of Return to Be Used - Greater of Test 1 or Test 2 UTILITY SYSTEM NONSUBSIDlZED REVENUE BONDS AND LOANS Outstanding 12/31/2005 $ 2,515,000 2,655,000 406,587 8,056 5,582,843 Fund 451 451 401 401 Water Utility (401) Wastewater Utility (451) Stormwater Utility (481) Combined Systems Debt Weighted Debt Weighted Debt Weighted Debt Weighted Amount Ave. % Amount Ave. % Amount Ave.%. Amount Ave. % $ 2,515,000 2.461 $ 2,515,000 2,296 2,655,000 2,624 2,655,000 2,616 $ 406,587 5.025 406,587 0.371 6,056 0.107 6,056 0,008 $ 412,643 5.132 % $ 5,170,000 5.305 % -r-- 0.000 % 5,582,643 5.293 % 2.500 % 2.500 % 2.500 % 2.500 % 7.632 % 7.605 % 2.500 % 7.793 % 4.560 % 4.560 % 4,560 % 4.560 % 2.500 % 2,500 % 2.500 % 2.500 % 7.060 % 7.060 % 7.060 % 7,060 % 7.632 % 7.805 % 7.060 % 7.793 % 30 of 31 SEWER ESCALATION 2004 TO 2008 Following Revenue % What City % Navy % Navy as a Requir. Change Adopted Change Adjustments Change % of Total Old Revenue $9,077,092 $9,077,092 $1,796,128 1st Year Adjustment [1] $10,509,287 15.8% $9,984,801 10.0% $1,673,160 -6.8% 15.92% 2nd Year Adjustment $11,382,673 8.3% = $11,382,673 14.0% $1,812,210 8.3% 15.92% 3rd Year Adjustment $11,860,746 4.2% $11,860,746 4.2% $1,888,323 4.2% 15.92% 4th (2008) Adjustment $12,275,872 3.5% $12,275,872 3.5% $1,954,414 3.5% 15.92% [1] - The revenue requirement for 2004 is adjusted from the original 2004 study to reflect the additional PilOT payments included within revised study. Note: Navy amount of $1 ,679,086 represents the final negotiated amount. Sewer Rate Design - 2008 Rates Target Rev. from C-O-S $1,954,414 Fixed Costs (50%) Variable Costs (50%) $976,800 $977,614 $1,954,414 12 Mths = 317,304 ccf = $81,400 IMonth $3.08 ICCF 31 of 31 DATE SUBMITTED: June 10,2008 BILL # 08- /s 1 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5I ........................................................................................ SUBJECT: Budget Adjustment for City Attorney's Office Committee Meeting Date: June 25, 2008 COUNCIL MEETING Date: July 2, 2008 Department: City Attorney's Office Presenter: Roger A. Lubovich Phone: 473-2345 SUMMARY: The City Attorney's Office 2008 budget for professional services (54110) was calculated based on disbursement levels from prior years. However, recent litigation requiring outside counsel has resulted in a need for additional funds in order to provide the City with necessary and uniquely experienced outside counsel. This litigation includes labor arbitration and a significant constitutional law issue. Staff is requesting a budget adjustment in the amount of $75,000 to fund the remaining anticipated attorneys' fees for 2008. ATTACHMENTS: None. FISCAL IMPACTS (Include Budgeted Amount): Additional expenditure for the General Fund - City Attorney's Office of $75,000 above the current budget expectations. The 2008 ending fund balance will be used to fund this budget adjustment. APPROV ALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: ~ COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA ~ GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to authorize a budget adjustment in the amount of$75,000 to the City Attorney's Office 2008 professional services budget. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action DATE SUBMITTED: June 10, 2008 BILL # oB-lftJo AGENDA BILL CITY OF BREMERTON CITY COUNCIL 6A ........................................................................................ SUBJECT: 2008 Justice Assistance Grant Application Committee Meeting Date: June 25, 2008 COUNCIL MEETING Date: July 2, 2008 Department: Police Presenter: Chief Rogers Phone: 473-5224 SUMMARY: The Bremerton Police Department applied for an Edward Byrne Memorial Justice Assistance Grant (JAG) that will allow the City of Bremerton to support a broad range of activities to prevent and control crime based on our own local needs and conditions. These needs are to purchase audio/video equipment for recording and collecting events that take place in Department interview rooms. Funds will also purchase ancillary .equipment for a multi-purpose incident command vehicle needed in times of disasters, active shooters, terrorist events, crime scenes and vehicle accidents. The grant is from the Department of Justice. No matching funds are required of the City. The total grant amount is $19,600.00. The grant duration is through September 2012. A TT ACHMENTS: Budget Narrative of the Grant Application FISCAL IMPACTS (Include Budgeted Amount): None. The JAG funding is a revenue source for $19, 600.00. It will provide dollars for interview room and incident command vehicle equipment purchases. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: CONSENT AGENDA D GENERAL BUSINESS X PUBLIC HEARING COMMITTEE CHAIR COUNCIL PRESIDENT: RECOMMENDED MOTION: Move to authorize the Police Department to apply for the Justice Assistance Grant for 2008 equipment funding. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action Bud2et Narrative The digital interview room solution enables investigators to capture, playback, annotate, save and manage audio/video recordings of custodial interrogations and interviews. The units will be located in the Department's interrogation rooms and jointly maintained with in-house staff and vendor support. It provides for easier transcription of recordings which results in more accurate transcripts; and improves productivity without changing established procedures. Equipment: Blue Tube DSP/Pre-Amp Security Dome Camera Boundary Microphone $1,500.00 $1,900.00 $1,300.00 $4,700.00 Total: The multi-purpose incident command vehicle will be used for disasters, active shooter and terrorist events, vehicle accidents and crime scenes. Command vehicles ensure that senior staff and critical support staff can perform their administrative functions and tasking with efficient use of resources, and effectively manage and control events as they develop or propagate Equipment: Portable Generator (2000 Watts) Inverters (2) Mobile Computer Terminal (2) Wireless Cards (2) Printer Awning (Side) Awning Canopy Curtains Command Post Kits Refrigerators (2) Mini) Water Tank and External Faucet Interior (Retrofit) $1,200.00 $1,000.00 $6,000.00 $800.00 $750.00 Total: $700.00 $500.00 $400.00 $3,550.00 $14,900.00 $19,600.00 Total Expenditure ~ DATE SUBMITTED: June 9th, 2008 BILL # 08-lfol AGENDA BILL CITY OF BREMERTON CITY COUNCIL ~B .............................................................................,........... SUBJECT: Resolution No. 30(o? Authorizing a Sole Source Contract and Goods and Services Agreement for the Purchase of a Romtec Restroom for Blueberry Park Committee Meeting Date: June 25, 2008 COUNCIL MEETING Date: July 2, 2008 Department: Parks Presenter: Wyn Birkenthal Phone: 473-5752 SUMMARY: The purchase of the restroom for Blueberry Park is part of the park improvements funded by state and federal grants. Romtec is the only pre-engineered site built restroom company in the country that provides complete building packages with the ability to customize the facility to meet the functional needs and aesthetic character of the park's farm-themed design. Romtec's pre-designed restroom packages cut months off the typical design process (in which the customer hires an architect and engineer) and can save up to $30,000 in design fees. ATTACHMENTS: 1. Memorandum from Parks Director recommending sole source purchase ofRomtec Restroom 2. Proposed Resolution 3. Goods and Services Agreement 4. Quote, Romtec Sierra™ Restroom Facility Model 2014 Sierra II Compact CMU Building Kit Package Specifications, and Restroom Illustration FISCAL IMPACTS (Include Budgeted Amount): The total purchase ofthe restroom ($40,985.52) is funded in the 2008 Parks Capital Improvement Plan. COMMITTEE CHAIR COUNCIL PRESIDENT: APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: CONSENT AGENDA ~ GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to pass Resolution No. 3 D (Q 5 authorizing a sole source purchase of a pre-engineered restroom package for Blueberry Park and further authorizing the Mayor to finalize and execute an agreement with Romtec, Inc. for the purchase of the restroom building package with substantially the same terms and conditions as presented. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action Wyn.Birkenthal@ ci.bremerton. wa.us PARKS AND RECREATION Parks Director I Wyn Birkenthal Tel 360-473-5752 Fax 360-473-5882 MEMORANDUM Date: June 20, 2008 To: Bremerton City Council From: Wyn Birkenthal, Parks Director Subject: Sole Source Purchase of Restroom Building Package from Romtec, Inc. Romtec is the only pre-engineered site built restroom company in the country that provide complete building packages with the ability to customize the facility to meet the functional needs and aesthetic character of the site. They are the only package supplier that offers flexible design capabilities such as custom siding options and variations in floor plan and elevations. Using Romtec's pre-engineered restroom process cuts months off of the typical design process since they can easily make modifications to already prepared floor plans and add custom items such as customer specified fixtures or exteriors. This allows Romtec to have a complete restroom package prepared and ready to build on site in about 6 weeks. In a normal design process (in which the customer hires an architect and engineer to design a restroom facility), the customer may not even get a preliminary plan from the architect in that amount of time and would pay up to 30k more in design fees. In short, by using Romtec's efficiencies developed over 20 years in the park restroom business, the City gets the benefits of a customized restroom package in a timely manner while also saving money on architectural/engineering services required in a typical customized design approach. Brief description of building package: Double plumbed restroom with floor plan dimensions of 12'-8" x 8'-8" meeting all ADA requirements. Exterior consists of a wood siding package. steel tI-amed windows, heavy duty stL:el doors, kick-proof steel wall vents and an insulated 4: 12 pitch roof with dark green metal roofing and a 6' roof extension. Interior includes a graffiti-proof FRP interior finish and stainless plumbing fixtures. RESOLUTION NO. 30 ~ 5' A RESOLUTION of the City Council of the City of Bremelion, Washington waiving the public bidding requirements and authorizing the Mayor sign a contract with ROMTEC for the purchase of a restroom facility to be placed at Blueberry Park. WHEREAS, the purchase of a restroom for Blueberry Park is part of the Blueberry Park improvements funded by State and Federal grants; and WHEREAS, Romtec is the only pre-engineered site built restroom company in the country that provides complete building packages with the ability to customize the facility to meet the functional needs and aesthetic character of the site; and WHEREAS, Romtec is the only package supplier that offers flexible design capabilities such as custom siding options and variations in floor plan and elevations; and WHEREAS, using Romtec's pre-engineered restroom process cuts months off of the typical design process since they can easily make modifications to already prepared floor plans and add custom items such as customer specified fixtures or exteriors; and WHEREAS, RCW 39.04.280(1)(a) specifically authorizes a municipality to waive competitive bidding requirements for purchases that are clearly and legitimately limited to a single source of supply; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the purchase of the Romtec restroom facility for Blueberry Park is clearly and legitimately limited to a single source of supply. SECTION 2. That the Mayor is hereby authorized to sign a contract with Romtec for the purchase of a restroom facility to be placed at Blueberry Park. SECTION 3. Competitive bidding requirements are hereby waived and are not required for securing contracts for materials, goods, equipment and services necessary to purchase the restroom referenced in this resolution. SECTION 4. Severabilitv. If anyone or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. . 1 Blueberry Park Restroom Facilities SECTION 5. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council ofthe City of Bremerton, Washington this _ day of June, 2008. WILL MAUPIN, Council President APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney CAROL ETGEN, City Clerk R:\Legal\Legal\Resolutions\Parks\Blueberry Park Restroom Facilities.doc 2 Blueberry Park Restroom Facilities Date: Job: romtee com R:L\MTEC 18240 North Bank Rd, Roseburg, OR 97470 mmtec.com 541-496-3541 fax: 541-496-0803 """.~,~r' 06/02/08 GOVERNMENT QUOTATION - Building Package Only Blueberry Park I CITY OF BREMERTON PARKS & RECREATION COLETTE BERNA 680 LEBO BLVD. BREMERTON IWA I Zip: 98310 360-473-5429 360-473-5882 : colette.berna@cLbremerton.wa.us I QUOTE #IR2-40804088 www. info(i'.D Agencyl Owner: :;ontractor: Contact: Address: City: State: Phone: Fax: Mobile ArchitecU Engineer: Contact: Address: City: State - Zip: Phone: Fax: Mobile: E-mail E-mail: Project Location: TERMS-GOVERNMENT: Net 35-day from date of shipment. TERMS-CONTRACTOR: Romtec Fast-Pay Discount offered with pre-payment 7 days prior to shipping with ChecklVisa/Mastercard/American Express or COD-Certified Funds (Credit Card Limit up to $20,000 only). Net 35-day terms may be considered with approved payment bond and credit approval by Romtec accounting department. Romtec Fast.pay Discount is not available with net 35-day terms. Quantity Model Description Comm. Price Extension 1 2014 Sierra II Compact Double Restroom Kit Package $19,353 $19,353.0C Custom , '''10/' ";g;. "JItU . Roofing: Dark Green metal, specified by customer. Exterior:split face concrete, unless otherwise specified. y,~r .~;. ''M' "'~ ~i0ti.~.: ,; *.,~: '. . , ~. '1~ 1 -B Stainless Plumbing Fixture Pkg - S2(w/floor mount toilets) $4,389.00 $4,389.00 1 SP Siding Package (bottom 3'-4" lap 1 top 4'-8" board & batt) $2,192.37 $2,192.37 1 RE 6' Roof Extension $12,211 $12,210.91 SUBTOTAL $38,145.28 GOVERNMENT DISCOUNT: Available to state, county, city and other agencies. Requires purchase order placed by agency to -$1,907.26 Romtec. NOTE: Discount available to contractor through Romtec Fast-Pay Terms (pre-payment or COD certified funds). Structural Engineering Fee I $1,850.00 $1,850.00 Shipping & Handling From Roseburg, OR to: Bremerton, WA I Zip Code:1 $2,897.50 TOTAL $40,985.52 A COMPLETE SET OF STAMPED PLANS, INCLUDING FOOTING & FOUNDATION DETAILS, IS INCLUDED WITH BUILDING PURCHASE, NOTE: PANEL SCHEDULES & ENERGY CALC'S WILL REQUIRE ADDITIONAL FEES 1* SPECIAL INSTRUCTIONS: * All prices listed above are F.O.B. Roseburg, OR, freight prepaid and added. . This quote is effective for 90 days from above date; thereafter all prices are subject to change without notice. . There is 15% restocking fee on all returned items. · This quotation is subject to the terms and conditions listed on the second sheet of this form (Click Terms tab below). Kelly Hink Authorized Signature 6/2/2008 Date 2nd Revised Quote 2014 Custom 06-02 -08KH.xls Page 1 of 1 Page 10fB Ri';"';;~~':'\MTEC ( JJ \<~ ' "',f _'''~''~~''''~: ., ,~'" f ROMTEC SIERRA ™ RESTROOM FACILITY Model: 2014 - SIERRA II COMPACT CMU BUILDING KIT PACKAGE Project: Floor Plan Dimensions: 12'-8" X 8'-8" Plan Set #: Revision: Rev Date: Includes all standard items for this building model and the following additional items: China Plumbing Fixture Package with floor mount toilets, Accessory package. MATERIALS SPECIFICATION PART I-GENERAL DESCRIPTION This section includes all materials and labor required in the placement and erection of the Romtec Sierra™ Concrete Restroom Facility with china plumbing fixtures. Generally, work will include: site preparation and grading, excavations for structures, backfill or structural backfill, foundation and pad construction and building construction. APPROVED MANUFACTURERS This specification is based on the Sierra Restroom Facility Model: 2016 - SIERRA II COMPACT CMU BUILDING PACKAGE as manufactured by: Romtec, Inc., 18240 North Bank Road, Roseburg, OR 97470 Phone: 541-496-3541; Fax: 541-496-0803; E-mail: romtecl@romtec.com cg 2008 Romtec, Inc. All Rights Reserved. These plans and drawings may be not reproduced, adapted, or further distributed, and no buildings may be constructed from these plans, without the written permission of Romtec, Inc. Any building proposed as an equal shall be submitted to the owner no later than ten (10) days prior to the bid date and must receive written approval from the owner. Otherwise, any alternate other than a Romtec building will not be considered. Pre-fabricated modular or pre-cast buildings are not acceptable. CODE COMPLIANCE AND STANDARDS All work and materials shall comply with the latest industry building codes and regulations. DESIGN CRITERIA Design shall meet the Americans with Disabilities Act Accessibility Guidelines (ADAAG). SPEC-2014 Sierra /I Compact NOT- T-24 FOR. BASED ON: Created: Revised: Page 2 of 8 WARRANTY The Romtec building and all its associated components shall be warranted against defects in materials and workmanship for a period of not less than one year from date of final acceptance. PART II - PRODUCTS FACTORY SUPPLIED ITEMS PER BUILDING: IMPORTANT: Refer to plans for quantities, dimensions, locations and installation methods for the materials and items described in this section. Note: Romtec reserves the right to make substitutions of equivalent materials and items without notice. Concrete Masonry Units - CMU (supplied by Romtec) Walls are constructed of8"W x 16"L x 8"H dry stack interlocking concrete masonry units (concrete blocks), manufactured to ASTM C90-02 designation for load bearing concrete masonry units, compressive strength = fm = 1500 psi. Wall construction has #5 Rebar Horizontal @32" o.c., w (2) #4's @ top course (spread) and #4 Rebar Vertical @32" o.c. wi (2) #4's (in one cell ea. face) @ doors & corners (see Installer Supplied Items-Rebar in Walls). Walls are fully grouted with 2500 psi concrete. Blocks are brown in color and have a split-face exterior surface and smooth interior surface. 1. Mortar Additive Horn Hydratite@ Plus shall be mixed with mortar (supplied by installer) in a continuous bed for the first course of blocks. This material provides a watertight seal at the base of the walls. 2. Wall Sealant Tamms Tamoseal@ cement based waterproofing finish shall be mixed (by installer) with Tamms Akkro@ -7T liquid bonding admixture for application to the inside surface of all exterior block walls. This material seals the pores and voids in the wall surface. Interior Wall Finish (supplied by Romtec) GlasteeFM FRP (fiberglass reinforced panels), Series 1200 (.090" thick). To be applied (by installer) to interior surfaces of all walls (except mechanical rooms). White panels are supplied with matching PVC trim and silicone caulk. Panels shall be applied with Henry's 117 FRP adhesive and white nylon mushroom head expansion anchors (114" xl") with nylon pin for application 16" each way. Note: Interior surfaces of some walls (i.e. mechanical room walls) may not have FRP finish. Refer to final plans for details. Prefabricated Structural Insulated Panels (supplied by Romtec) Roof panels are prefabricated, structural, insulated panels. Interior and exterior sheathing is 7/16" Structural II OSB. Insulation is 5 12" - R-23. Panels include all necessary hardware and fasteners for installation on building walls. 1. Vaulted Ceiling Finish Interior vaulted ceiling surfaces and exposed eaves and gable overhangs are pre-finished with white FRP (fiberglass reinforced panels), .090" thick. FRP is pre-installed with Henry's 117 FRP adhesive. FRP trim is white PVe. Roof panel trim is 22-gauge white galvanized steel. Includes fasteners for FRP. SPEC-2014 Sierra" Compact NOT-T-24 FOR: BASED ON. Created: Revised: Page 3 of 8 Roofing-Metal (supplied by Romtec) Fabral Delta-Rib, 29-ga. steel roofing, with 24" coverage width. Choice of roofing color; standard color is dark brown. Roofing package includes inside and outside foam closures, matching trim (eaves, gables and ridge) and fasteners, sheet metal flashing (all sides), foam closure strips and 30# roll roofing (under metal). WV-I, Wall Vent, kick resistant for CMU wall (supplied by Romtec) Pre-assembled lI8" black steel frame and heavy-duty expanded steel mesh welded to both sides of a galvanized louvered vent with integral insect screen. Dimensions: 16" x 24" x 7" o.d., 12-" x 18" x 2" i.d. free area: 100 sq. in. Finish: powder-coated, black. GW-I, Gable Window, steel frame (supplied by Romtec) Gable window consists ofa pre-installed translucent (obscure) Lexan@ acrylic panel, )4" thick, in a triangular steel frame. Frames are fabricated from 2" x 2" x 1/8" thick angle steel, double sided. Frame finish is powder coated, black. Window is supplied with all necessary fasteners for connection to building walls and roof panel. 1. Window Fasteners Refer to drawings and/or manuals for quantities, locations and spacing of window fasteners. DO-I, Man Door, Steel 3'-0" x 7'-0" for concrete wall (supplied by Romtec) Steelcraft@ Ll8-Series Flush Door with honeycomb core. Material is 18-ga. galvanized steel (14-ga. top and bottom channels). Finish is powder coated, black. A stainless steel kick plate is preinstalled at the bottom of the interior surface of the door. Door dimensions are 36" x 84" x 1-3/4". Available with left or right swing. 1. Door Frame for 3'-0" x 7'-0" door for concrete wall Steelcraft@ Fl6-Series 3-Sided Flush Frame, pre-welded. Material is 16-ga. galvanized steel. Finish is powder coated, black. Frame dimensions are: 2" jamb width, 4" header height, and 7-3/4" jamb thickness. Doorframe is grouted into walls during installation. 2. Door Clips for Door Frame Masonry door clips (3/16" diam.) are fitted between the doorframe and concrete blocks to bond frame to wall. Door clips allow full internal grouting of the frame during installation. 3. Door Hinges Bommer LB431OC-450J-652 adjustable spring hinge (top and bottom). LB8093-450lJ-652 standard hinge (middle). Made with non-corrosive lubricated bearings. Finish is Satin Chrome with rust resistant coated steel. Kit is provided with stainless steel screws and pins on standard hinge and stainless steel screws and knobs (top and bottom) on spring hinge. 4. Cylinder Deadlock-Dormitory (single user doors) Falcon Lock D841 Cylinder Deadlock with Thumb-Turn. Installation on-site with supplied hardware. Deadlock and hardware are zinc plated. Locks or unlocks by key from outside. Unlocked by thumb-turn on the inside. Canhot be locked from the inside. 5. Pull Plate & Handle Trimco 1017-3B Pull Plate and 1194-2 Handle. Pull plate is preinstalled on door. Handle is installed on site. With supplied hardware. Pull plate and handle are stainless steel. SPEC-2014 Sierra /I Compact NOT- T-24 FOR: BASED ON: Created: Revised: Page 4 of 8 WC-I, Toilet, Floor Mount China, ADA Compliant (supplied by Romtec) Crane 1.5 Hymont 3H-701E Water Closet. White vitreous china, low consumption (1.5 gal. per flush), with elongated rim. 17-1/4" high at rim. Siphon action, 1-1/2" top spud. 1. Toilet Seat Beneke 523 Open end plastic seat for elongated bowl. Seat is injection molded of high strength, impact and chemical resistant polypropylene, matching check hinges have integrally molded, stainless steel posts fitted with stainless steel washers and nuts, Perma-Bumper feature provides integrally molded bumpers that are permanent, sanitary and easy to clean, white. 2. Flush Valve, toilet Royal 111 Exposed Closet Flushometer for 1-1/2" top spud bowl. 3. Fasteners for Toilet Fixtures (supplied by Romtec) All necessary zinc-plated steel fasteners for attaching plumbing fixtures to walls, and floors. LV-I, Lavatory, ADA Compliant, without backsplash (supplied by Romtec) Crane Westmont 1-318- V Wall Hung Lavatory. White vitreous china, 19"W x 17"D. 1. Faucet Chicago 333-665 Metering Single Faucet with push control handle and aerator 2. Offset Grid Strainer and P-trap, for lavatory Dearborn 760W Strainer, Dearborn 701 P-trap, 1-1/4", 17-ga. 3. Protective Pipe Cover ADA-conforming, wheelchair accessible lavatory P-trap and angle valve assemblied shall be covered with the molded, anti-microbial TRUEBRO, INC. LA V GUARD undersink protective pipe cover Model #101, Accessory #105K, China White. Cover shall be secured with Snap-Clip flush reusable fasteners, angle stop shall have Lock-Lid locking access cover. 4. Fasteners for Lavatory Fixtures All necessary zinc-plated steel fasteners for attaching plumbing fixtures to walls, and floors. HB-l, Wall Hydrant, exterior application (supplied by Romtec) Woodford 67P Freeze less Hydrant, automatic draining with anti-siphon vacuum breaker, for W' copper pipe. Depth to match wall thickness. GB-I, Grab Bars (supplied by Romtec) Brey-Krause Mfg. Co D-7816-SS and D-7815-SS, Stainless Steel Grab Bars, 36" & 42"L, 14-ga, satin finish, 1 12" o.d 22 ga. round snap-on concealed mount MR-I, Mirror (supplied by Romtec) Brey-Krause Mfg. Co.T-1024-30-SS 18 ga. Satin Finish, 24"W x 30"H. SPEC-2014 Sierra" Compact NOT-T-24 FOR: BASED ON' Created: Revised: Page 5 of 8 TP-l, Toilet Paper Dispenser-2-roll, white painted steel (supplied by Romtec) Aslin Lockable Dispenser, two-roll, 1/4" steel, 13" long, lockable (padlock not included). Finish: white painted steel. Available configurations include: free-rolling with 1" narrow bar, restricted- rolling with 1" narrow bar and friction sleeve, no-roll with 2" wide bar. Required fasteners (six) to be supplied by installer. SI-l, Signs (supplied by Romtec) Restroom entry signs shall be fastened to exterior walls alongside entry doors to meet ADA requirements. Graphics and Grade 2 Braille on injection molded plastic signs, gray color, Womens- . #8489, Men's # 8490, Unisex # Dimensions: 8" W x 8" H x 1/8" thickness. SC-l, Seat Cover Dispenser (supplied by Romtec) Bradley 583 Seat Cover Dispenser. Surface mounted, satin finish stainless steel, 500 capacity. ND-l, Napkin/Tampon Disposal Dispenser- (supplied by Romtec) Bradley 4722-15 napkin-tampon disposal, surface mounted, satin finish stainless steel, Single end compartment. PT-l, Paper Towel Dispenser- (supplied by Romtec) Bradley 251-33 paper towel dispenser, surface mounted, single-fold towels, white enamel finish. WR-l, Waste Receptacle (supplied by Romtec) Bradley 377-38 36-gallon waste receptacle. Fabricated of heavy gauge stainless steel with exposed surfaces in architectural stain finish. Equipped with vinyl wall bumper strip and rubber feet. Top fabricated of heavy gauge stainless steel. Swing door is counter balanced for easy operation. SD-l, Soap Dispenser (supplied by Romtec) Bradley 6562 Soap Dispenser. Tank type-vertical surface mounted, push-in corrosion resistant liquid soap valve. Finish: stainless steel. INSTALLER SUPPLIED ITEMS - ROMTEC IS NOT INSTALLING The following items are to be supplied by the building installer. Refer to drawings for quantities, dimensions, locations and installation methods for items described in this section. The installer shall supply any parts not listed above in Factory Supplied Items Per Building, including but not limited to items specified in the final plans and items required by building codes. The installer shall be responsible for ensuring that the concrete foundation and slab are adequate for the site conditions and the purpose for which the building and foundation/slab are intended. Equipment, Labor and Trades (supplied by installer) All equipment, labor and trades to unload the building, excavate the site, build concrete forms, supply and install the reinforced concrete footings and slab, and install the building and fixtures. Engineered Fill (supplied by installer) 3/4" minus crushed rock engineered fill around footing, foundation and slab as required. Slab Vapor Barrier (supplied by installer) 6 mil. continuous vapor barrier under concrete slab. SPEC-2014 Sierra" Compact NOT- T-24 FOR. BASED ON: Created: Revised: Page 6 of 8 Concrete Foundation/Footing, Interior Slabs and Exterior/Entry Slabs (supplied by installer) 2500 psi ready-mix concrete to dimensions specified in final plans. Steel rebar to be supplied by installer as specified in final plans. Concrete Slab Sealer (supplied by installer) Sonneborn Sonocrete Kure 1315 water-base transparent curing, sealing and dust proofing compound or equivalent. Two (2) coats to be applied per manufacturer's instructions by installer. Mortar Bed for First Course of Blocks (supplied by installer) Mixed with Hydratite@ Plus mortar additive (supplied by Romtec). Mortar supplied by installer. Concrete Grout in Walls (supplied by installer) 2500 psi ready-mix concrete pumped into stacked wall blocks, approx. 1 cubic yd. per 100 blocks. Rebar in Walls (supplied by installer) All walls have #5 Rebar Horizontal @32" O.c., w (2) #4's @ top course (spread) and #4 Rebar Vertical @32" O.c. w/ (2) #4's (in one cell ea. Face) @ doors & comers Sidewalks (supplied by installer) 2500 psi broom finish 4' sidewalk with control joints per local code, with remesh 6 x 6 x 10. Plumbing Rough-in (supplied by installer) All underground water service to building as specified in final site plan. (Note: minimum water pressure at toilet and urinal flush valves (11/2" inlet pipe) shall be 50 psi.) All floor drains as shown on final plans. All underground sewer drain(s) from building as specified in final site plan. Building water shutoff valve and drain and all rough piping as shown on final plans. Plumbing Installation and Trim (supplied by installer) Supplied fixtures as specified in final plans. (Note: supply and install fasteners and trim for fixtures as required.) Plumbing NOTE: (IF APPLICABLE) Hot water tanks require a pressure relief valve (included when hot water package is part of Romtec's supplied items) and drain line (installer supplied) to the exterior of the building per UPC, Section 608.4. Hot water tanks require two straps per UPC, Section 510.5. (installer supplied) NOTE: Textured cane detectable area around drinkin2: fountain may be reQuired to meet ADA standards. An area 33" x 48" extends 12" out from fountain in front and on both sides. FD-l, Floor Drain (supplied by installer) Smith 2005, duco cast iron body with flashing collar and adjustable strainer. (unless owner specifies otherwise) Electrical Rough-in (supplied by installer) All underground and/or overhead service to building as specified in final site plan. SPEC-2014 Sierra /I Compact NOT- T-24 FOR: BASED ON: Created: Revised: Page 7 of 8 Electric meter base and all rough wiring, conduit, switches, plugs and circuit breakers as shown on final plans. (Note: Romtec does not supply the meter base. Romtec-supplied breaker panel includes main breaker only. Branch circuit breakers are not supplied by Romtec.) Electrical Installation and Trim (supplied by installer) Supplied fixtures as specified in final plans. Note: supply and install fasteners and trim for fixtures as required.) Provide #4 bare copper ground wire per NEC 250 and approved connectors per plans. CB-I, Branch Circuit Breakers (supplied by installer) Cutler Hammer BR Type-Single Phase-Single Pole (or equivalent) SW-I, Switch (supplied by installer) (if needed) Leviton 1221-21 quiet wall switch, 15 amp/120 volt, Ivory colored with cover plate (or equivalent) EO-I, GFCI Outlets (supplied by installer) (if needed) Pass & Seymour/Legrand 1594, Straight Blade Duplex GFCI Receptacles, 2 Pole, 3 wire grounding, UL Listed. With SafeLock Protection and a trip-indicator light. Weatherproof Box & Cover (supplied by installer) Mortared -in- application, 4600 Pass & Seymour Legrand 4600 Enclosure only, without mounting plate, 4600-26P Mounting Plate for Decorator/ GFCI, 4609 Key for Enclosure ELECTRICA'b"FIXTURE PAtKAGE~ Supplied by~taller As specified by owner. Drinking Fountain Guardrail (supplied by installer) - where applicable-optional Installer to supply and install: Guardrails as specified by State or Owner Other (supplied by installer) The building installer is responsible for supply and installation of all other items indicated on final plans or required by building codes, which are not supplied by Romtec. Special Inspection (supplied by owner, not by ROMTEC) if required: If Special Inspection, as defined by Code, is required per the Building Department or other regulatory agencies, then Romtec can assist but NOT provide this service. Romtec can endorse an owner furnished special inspector or special inspection company in order to facilitate the permitting process. In order for Romtec to endorse the proposed special inspector, documentation such as previous experience, resume's and references, etc. shall be requested by Romtec in order to endorse their services. Romtec, under no circumstance shall be considered the special Inspector, nor shall they pay any fees associated with such. All such required costs, fees and arrangements associated with these are the responsibility of the owner. ITEMS NOT SUPPLIED BY ROMTEC OR INSTALLER The following items are to be supplied by others. This could be the owner, landscapers, or other site workers. This also includes any items not listed above or in the plans, that are not listed as being supplied by either Romtec or the Installer. SPEC-2014 Sierra /I Compact NOT-T-24 FOR: BASED ON: Created: Revised: Page 8 of 8 Relocation and installation of existing utilities per written specification to be supplied by owner. :E:Xt~l:ioi{Concrete silt. ,,:; :~," , c '~ - quotapon as supplied ~ Exterlorconcrete side pad~between building' gra~el; concrete pad 0 sid~al}{s. shall have i.. atiJ1,Illding~:Ii~rimei~f(suppli~dby oth~ts unlesls}i~af!..~d in aIler) . ~'at bu~l~Ff!; pe~eter (n!~incluciiig steel"t;~!orced d~~r4~1C9ncr~te s) to cOI!~lSt of: .s~~~grade'of 2'" de~.sand. J~g base. over 6'.fl1eep, 'ok 25.00 p.s.i'~ncrete . #3 (318") reb 8':each way. Concrete wi! . r ". ,.... . , deep sg.wcutS,!:~~o;c; all:expansigpjoinf .b.e. $ . ~. Bac~~}V CheckValv~{lt~other~ . . i! f(' ," . 'v Sewtf:r;Jllle backflow c%€%::valve to he supp't~ed,.by $ers. DraillA V~lve (by 0 . Water~ine drain valv "iF . ',' '. 'n:' ',,', . .l?~:sllPplied by otlf~rg, aterials andEqd wing items at\~I"! final p lans:/ . .omtec orlnst . ~ntrNPtSu.~ ; , er i!en;ls not ideih~ scoP. "<:Romt!c or Inst~l",~ or 'pecifi~~i()tl, })r not ., ,Jfica 1!a~#:X.it)ot sUPPtiedjr '. ." ...... 'ressi9i\,Equipmc,t .. tach~~t~ the bUij({in~;.. . . . ~'. ludeCi,tn the M:atenarS~~eclfic~ti()n clud~in the "terial~~;g~cificltfub SPEC-2014 Sierra" Compact NOT-T-24 FOR: BASED ON: Created: Revised: GOODS AND SERVICES AGREEMENT THIS AGREEMENT, is entered into between the City of Bremerton, a Washington Municipal Corporation ("City"), and Glass Romtec Inc. ("Vendor"), whose mailing address is: 18240 North Bank Rd., Roseburg, OR 97470. The parties agree as follows: 1. VENDOR SERVICES. The Vendor shall provide the following goods and materials and/or perform the following services for the City: Pre-engineered Restroom Package for Blueberry Park 2. TIME OF COMPLETION. Vendor shall complete the work and provide all goods, materials and services within 30 calendar days from the date all parties have signed this Agreement. 3. COMPENSATION. The City shall pay the Vendor the total amount of$40,985 .52 including applicable Washington State Sales Tax, for the goods, materials and services contemplated in this Agreement. The City shall pay the Vendor the following amounts according to the following schedule: Lump sum 35 davs from date of shipment. A. Defective or Unauthorized Work. The City reserves its right to withhold payment from Vendor for any defective or unauthorized goods, materials or services. If Vendor is unable, for any reason, to complete any part of this Agreement, the City may obtain the goods, materials or services by Agreement or otherwise, and Vendor shall be liable to the City for any additional costs incurred by the City. "Additional costs" shall mean all reasonable costs, including legal costs and attorney fees, incurred by the City beyond the maximum Agreement price specified above. The City further reserves its right to deduct the cost to complete this Agreement, including any Additional Costs, from any and all amounts due or to become due the Vendor. 4. INDEPENDENT CONTRACTOR. Contractor is and shall be at all times acting as an independent contractor and not as an employee of the City. The Contractor shall secure at its expense, and shall be responsible for all payments of income tax, social security, state disability insurance compensation, unemployment compensation, and all other payroll deductions for the Contractor, officer, agents, employees and sub-contractors. The Contractor shall also secure all applicable business licenses, if required, in connection with the contract services, including all required licenses for Contractor's officers, agents, employees and sub-contractors. 5. TERMINATION. The City may terminate this Agreement for good cause. "Good cause" shall include, without limitation, any one or more of the following events: A. The Vendor's refusal or failure to supply a sufficient number of properly skilled workers or proper materials for completion of this Agreement. B. The Vendor's failure to complete this Agreement within the time specified in this Agreement. C. The Vendor's failure to make full and prompt payment to subcontractors or for material or labor. D. The Vendor's failure to complete with federal, state or local laws, rules or regulations. E. The Vendor's filing for bankruptcy or becoming adjudged bankrupt. If the City terminates this Agreement for good cause, the Vendor shall not receive any further monies due under this Agreement until the goods, materials and services required by this Agreement are completed and fully performed. 6. CHANGES. The City may issue a written change order for any change in the goods, materials or services to be provided during the performance of this Agreement. If the Vendor determines, for any reason, that a change order is necessary, Vendor must submit a written change order request to an authorized agent of the City within fourteen (14) calendar days of the date Vendor knew or should have known of the facts and events giving rise to the requested change. If the City detennines that the change increases or decreases the Vendor's costs or time for performance, the City will make an equitable adjustment. The City will attempt, in good faith, to reach agreement with the Vendor on all equitable adjustments. However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate. The Vendor shall proceed with the change order work upon receiving either a written change order from the City or an oral order from the City before actually receiving the written change order. If the Vendor fails to require a change order within the time allowed, the Vendor waives its right to make any claim or submit subsequent change order requests for that portion of the contract work. If the Vendor disagrees with the equitable adjustment the Vendor must complete the change order work; however, the Vendor may elect to protest the adjustment as provided below: A. Procedure and Protest bv the Vendor. If the Vendor disagrees with anything required by a change order, another written order, or an oral order from the City, including any direction, instruction, interpretation, or determination by the City, the Vendor shall: 1. Immediately give a signed written notice of protest to the City; 2. Supplement the written protest within fourteen (14) calendar days with a written statement that provides the following information: a. The date of the Vendor's protest. b. The nature and circumstances that caused the protest. c. The provisions in this Agreement that support the protest. d. The estimated dollar cost, if any, of the protested work and how that estimate was determined. e. An analysis of the progress schedule showing the schedule change or disruption if the Vendor is asserting a schedule change or disruption. 3. The Vendor shall keep complete records of extra costs and time incurred as a result ofthe protested work. The City shall have access to any of the Vendor's records needed for evaluating the protest. The City will evaluate all protests, provided the procedures in this section are followed. If the City determines that a protest is valid, the City will adjust payment for work or time by an equitable adjustment. No adjustment will be made for an invalid protest. B. Vendor's Dutv to Complete Protested Work. In spite of any protest, the Vendor shall proceed promptly to provide the goods, materials and services required by the City under this Agreement. C. Vendor's Acceptance of Changes. The Vendor accepts all requirements of a change order by: (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides. A change order that is accepted by Vendor as provided in this section shall constitute full payment and final settlement of all claims for contract ti~e and for direct, indirect and consequential costs, including costs of delays related to any work, either covered or affected by the change. D. Failure to Protest Constitutes Waiver. By not protesting as this section provides, the Vendor also waives any additional entitlement and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination). E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the procedures of this section, the Vendor completely waives any claims for protested work and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination). 7. CLAIMS. The Vendor shall give written notice to the City of all claims other than change orders within fourteen (14) calendar days of the occurrence of the events giving rise to the claims. Any claim for damages, additional payment for any reason, or extension of time, whether under this Agreement or otherwise, shall be conclusively deemed to have been waived by the Vendor unless a timely written claim is made in strict accordance with the applicable provisions of this Agreement; or, if (and only if) no such provision is applicable, unless that claim is set forth in detail in writing and received by the City within seven (7) calendar days from the date Vendor knew, or should have known, of the facts giving rise to the claim. At a minimum, a Vendor's written claim must include the information set forth regarding protests in Section 7(A)(2)(a)-(e). FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT DELAY. Vendor must, in any event, file any claim or bring any suit arising from or connected with this Agreement within 120 calendar days from the date the contract work is complete. 8. WARRANTY. The Vendor shall correct all defects in workmanship and materials within one year from the date of the City's acceptance of the Contract work. When defects are corrected, the warranty for that portion of the work shall extend for one year from the date such correction is completed and accepted by the City. The Vendor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the City of the defect. If the Vendor does not accomplish the corrections within a reasonable time, the City may complete the corrections and the Vendor shall pay all costs incurred by the City in order to accomplish the correction. 9. INDEMNIFICA nON. Vendor shall defend, indemnify and hold the City, its officer, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the performance of this Agreement. Vendor's obligation to indemnify shall not extend to that portion of damages caused by the City's sole negligence. The City's inspection or acceptance of any of V endor's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event ofliability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Vendor and the City, its officers, officials, employees, agents and volunteers, the Vendor's liability hereunder shall b~ only to the extent of the Vendor's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS INDEMNIFICATION CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this Agreement. 10. INSURANCE. The Vendor shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Contract work by the Vendor, its agents, representatives, employees or subcontractors. Before beginning work on the project described in this Agreement, the Vendor shall provide a Certificate ofInsurance evidencing: I. Automobile Liabilitv insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and 2. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations/broad form property damage; and employer's liability. Any payment of deductible or self insured retention shall be the sole responsibility of the Vendor. All required policies shall be provided on an "occurrence" basis except professional liability insurance (if required), which shall be provided on a "claims-made" basis. The City shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Vendor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all the required insurance policies. The Vendor's Commercial General Liability insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. The Vendor's insurance shall be primary insurance as respects the City and the City shall be given thirty (30) days prior written notice by certified mail, return receipt requested, of any cancellation, suspension or material change in coverage. The City also reserves its unqualified right to require at any time.and for any reason, proof of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence of coverage. 11. MISCELLANEOUS. A. Licenses and Taxes. Vendor shall possess a current Bremerton Business License and any regulatory license required to fulfill Vendor's obligations under this contract. B&O taxes shall be paid when due, and Vendor, by this agreement, assigns any payments due under this contract to the City Clerk for payment of such. taxes which have been declared delinquent. B. Conflict and Precedence. In the event of a conflict between the contract documents, the document which rates higher on the following list shall take precedence: 1. Addenda, if any, 2. Contract, 3. Specifications, 4. Terms and Conditions, 5. Contractor's proposal. C. Documents Incorporated by Reference. The following documents are incorporated by reference, to include, but not be limited to: 1. Terms and Conditions, 2. Specifications, 3. Proposal, and 4. Non-Collusion Affidavit. D. Nondiscrimination. In the hiring of employees for the performance of work under this Agreement the Vendor, its subcontractors, or any person acting on behalf of Vendor shall not, by reason of race, religion, color, sex, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. E. Compliance with Laws. Vendor shall comply with all federal, state and local laws, rules and regulations throughout every aspect in the performance of this Agreement. F. Work Performed at Vendor's Risk. Vendor shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of this Agreement. All work shall be done at Vendor's own risk, and Vendor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. G. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Washington. If any dispute arises between the City and Vendor under any of the provisions of this Agreement, resolution of that dispute shall be available exclusively under the jurisdiction, venue and rules ofthe Kitsap County Superior Court, Kitsap County, Washington. H. Attorney's Fees. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall be responsible for payment of its own legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit; however, nothing in this subsection shall limit the City's right to indemnification under Section 9 of this Agreement. 1. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed below, unless otherwise notified. Any written notice shall become effective upon delivery, but in any event three (3) calendar days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement. Notices to be sent to: Notices to be sent to: VENDOR: CITY: Attn: Lem James Romtec Inc. 18240 North Bank Road Roseburg, OR 97470 Attn: Colette Bema, Park Development Planner City of Bremerton, Parks & Recreation Dept. 680 Lebo Blvd. Bremerton, WA. 98337 1. Assignment. Any assignment of this Agreement by the Vendor without the written consent of the City shall be void. K. Modification. No waiver, alteration, or modification of any ofthe provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Vendor. L. Severability. If anyone or more sections, sub-sections, or sentences of this Agreement are held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this Agreement and the remainder shall remain in full force and effect. M. Entire Agreement. The written provisions and terms of this Agreement, together with any attached Exhibits, supersede all prior verbal statements by any representative of the City, and those statements shall not be construed as forming a part of or altering in any manner this Agreement. This Agreement and any attached Exhibits contain the entire Agreement between the parties. Should any language in any Exhibit to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. IN WITNESS WHEREOF, the parties below have executed this Agreement. VENDOR: CITY: City of Bremerton By: Print Name: Its: Date: By: Print Name: Its: Date: APPROVED AS TO FORM: By: Bremerton City Attorney ATTEST: By: City Clerk 5C- Move to authorize the expenditure of an additional $9,000 froll1 the Stomlwater Operations Budget to pay for legal services for the NPDES II Permit appeal. ($'AI308 -l(2) ---.....,