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HomeMy WebLinkAbout12/05/2012 AGENDA I o , 00QQ oo o O CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 - Phone (360) 473 -5280 DECEMBER 05, 2012 CITY COUNCIL MEETING AGENDA 1 BRIEFING: 5 00 to 5 30 P M in COUNCIL CONFERENCE ROOM 603 A General Council Business 2 CALL TO ORDER. 5 30 P M in FIRST FLOOR CHAMBERS A Pledge of Allegiance B Invocation 3 PUBLIC RECOGNITION 4 MAYORS REPORT 5 CONSENT AGENDA A Claims & Check Register B Minutes of Meeting - November 7, 2012 C Minutes of Study Session - November 14, 2012 D Minutes of Study Session & Budget Workshop - November 28, 2012 E Contract Modification No 1 to Former Chevron Property Remediation Contract with Parametnx F Agreed Order with Department of Ecology for Long -Term Monitoring and Reporting at the former Chevron Property G Ordinance No 5199 to repeal Ch 2 34 of the Bremerton Municipal Code (BMC) regarding the Gold Mountain Complex Board of Directors H Adopt Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement 2012 Amendments I Bid Award to EC Power Systems for Emergency Generator Purchase for Fire Station No 1 J Resolution No 3185 amending and re- establishing City Rates and Fees for 2013 K Ordinance No 5201 amending Section 3 86 200 of the Bremerton Municipal Code (BMC) relating to Business & Occupation (B &O) Taxes, and further amending Chapter 3 48 of the BMC (The two mayor changes relate to "digital goods" and confidentiality of tax returns) 6 GENERAL BUSINESS A Ordinance No 5200 adopting the Fiscal Year 2013 City of Bremerton Budget 7 COUNCIL MEMBER REPORTS 8 EXECUTIVE SESSION 15- Minutes to discuss "Potential Litigation" per RCW 42 30 110 (1)(1) (No action is anticipated ) 9 ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING ® Americans with Disabilities Act (ADA) accommodations provided upon request Those requiring special accommodations please contact the City Clerk at (360) 473 -5323 by noon on the day preceding the Meeting BREMERTON CITY COUNCIL MEETING SPEAKERS LIST "Now that the Election Season is here, please be aware that per the Bremerton City Council Rules & Procedures, discussion of ballot issues is prohibited after the issue has qualified for the ballot; and all announcements or advertising concerning candidates is also prohibited..." PLEASE PRINT YOUR NAME BELOW IF YOU WISH YOUR COMMENTS TO BE INCLUDED IN THE RECORD REQUESTS FOR INFORMATION MUST BE SUBMITTED IN WRITING TO THE CLERK THANK YOU Members of the council, thank you for the opportunity to speak to you today My name is Paul Dutky, and I represent MoveToAmend Kitsap We identify excessive corporate power as the most serious threat to many values and principles we treasure civil justice, health and safety, ecological sustainability, and a functioning democracy The Supreme Court's Citizens United decision, and related decisions, hold that corporations are entitled to the same constitutional rights as people that political spending can not be regulated because it is free speech under the First Amendment, and that unlimited, unconstrained political spending does not distort and corrupt the political process There is already a public consensus that these propositions defy common sense and are unacceptable We now have 11 states and 350 cities and towns supporting a 28th Amendment to the US Constitution that would overturn the Citizens United decision and regulate campaign spending In Washington these include Port Townsend, Olympia, Seattle, Bellingham, Coupeville, Langley, La Conner, as well as Jefferson and Island counties I would like the Bremerton City council to loin them, and pass a resolution that calls on the Washington State Legislature to initiate steps to Amend the US constitution with provisions that clearly state that (1) Corporations are not human beings, and are not entitled to Constitutional rights granted to us, "the People" (2) Regulating political contributions and spending is not equivalent to limiting political speech Money is property If money were speech, those without or with less money lose their voice I know the council is busy with end -of -the year matters, and some may question the relevance of my request Going forward I'll explain how this issue is relevant to the Council and the residents of Bremerton Women's inability to vote, for example, deeply affected half the population, and the impetus for a constitutional amendment began at the grass roots level to motivate our state legislators to act appropriately on our behalf All of the state legislators at that time were men, of course All state legislators in our time are immersed in political special interest contributions Women's Sufferage was a movement in pursuit of a paradigm shift the granting of voting rights to women, not a change in a specific fiscal policy or trade deal Similarly, a 28th amendment would create a paradigm shift, the removal of "People rights" wrongly granted to corporations by the judiciary I've submitted a sample City Resolution for your consideration It is my amalgam of other Washington municipal resolutions that have been formally adopted The petitions we are collecting appeal directly to you, our local representatives, to adopt a resolution similar to the one I've submitted Thank you for your attention v� To Wnewo f`�i 7ski ° Proposed Resolution for the Bremerton City Council Whereas, government of, by, and for the people through free and fair elections has long been a cherished American value, and the means by which we secure our rights to life, liberty, property, and the pursuit of happiness as guaranteed in the US Constitution and the Declaration of Independence, and, Whereas, persons are rightfully recognized as human beings whose essential needs include clean air, clean water, safe and secure food, healthcare, education, and, Whereas, corporations are entirely human -made legal fictions that are not mentioned in the U S Constitution, and are rightfully subservient to human beings and governments as our legal creations, and, Whereas, corporations can exist in perpetuity and simultaneously in many nations at once, cannot serve in the military, need only profit to persist, and whose profit - driven goals are often in direct conflict with the essential needs and rights of human beings, since corporations do not need air, water, food, education or healthcare to survive and fulfill their potential, and, Whereas, the judicial bestowal of Constitutional human rights upon corporations usurps the Constitutional rights guaranteed to human persons, and empowers corporations to sue municipal and state governments for adopting laws that violate 'corporate rights' even when those laws serve to protect and defend the rights of human persons and communities, and, Whereas, the recent Citizens United v the Federal Election Commission Supreme Court decision claims money is a form of speech, and corporations are therefore entitled to the First Amendment provisions in the Constitution, effectively rolling back limits on spending in the electoral process, and creating an unequal playing field that allows those with the most money to unfairly influence candidate selection, campaigns, elections, lawmaking and public policy decisions, and, Whereas, this judicial interpretation further forces elected officials to divert their attention from The Peoples' business, or even vote against the interest of their human constituents, in order to ensure competitive campaign funds for their own re- election, and, Whereas, in the two years since the ruling, there has been tremendous growth in contributions and spending by super political action committees for media ads and related independent electioneering activities , and, Whereas, money is property, not speech, and, Whereas, the people of the United States have previously used the constitutional amendment process to correct decisions of the U S Supreme Court that are deemed to be egregious or wrongly decided or significantly out -of -step with the prevailing values of the populace, Whereas, tens of thousands of people, Washington municipalities (Port Townsend, Olympia, Seattle, Bellingham, Coupewlle, Langley, La Conner), counties (Jefferson and Island counties), and states across the nation (MT, VT, CO, CA, IA, MA, NJ, NY, NM, RI) are joining with the Move to Amend campaign to call for a 28th Amendment to the US Constitution to overturn the Citizens United decision and regulate campaign spending, THEREFORE BE IT RESOLVED BY THE BREMERTON CITY COUNCIL, THAT Section 1 The Bremerton City Council calls on the United States Congress and the Washington State Legislature to initiate steps to amend the United States Constitution with provisions that clearly state that (1) Corporations are not human beings, and only human beings are endowed with Constitutional rights (2) Contributions and expenditures for political purposes are not Constitutionally - protected speech, and that, therefore regulating political contributions and spending is not equivalent to limiting political speech (3) Congress and the States shall have the power to regulate contributions and expenditures for campaigns and ballot measures, and to require public disclosure of the sources of such contributions and expenditures Section 2 The City of Bremerton supports education to increase public awareness of the threats to our democracy posed by Corporate Personhood, and encourages lively discussion to build understanding, and consensus to take appropriate community and municipal actions to democratically respond to these threats Adopted by the City Council the day of , 2012, and signed by me in open session in authentication of its adoption this day of , 2012 President of the City Council_ i 6 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT- Claims & Check Register Study Session Date COUNCIL MEETING Date December 5, 2012 Department Financial Services Presenter Shannon Conn Phone 473 -5323 SUMMARY. Approval of the following checks and electronic fund transfers 1) Check #'s 350960 through 351308 and EFT's 12336 through 12413 in the amount of $5,448,20940 2) Regular Payroll for the pay period ending November 15, 2012 in the amount of $718,770 76 3) Retiree Payroll for the pay period ending November 30, 2012 in the amount of $62,910 99 ATTACHMENTS- FISCAL IMPACTS (Include Budgeted Amount) STUDY SESSION AGENDA ® No Discussion 0 Full Presentation STUDY SESSION ACTION: 0 Consent Agenda 0 General Business 0 Public Hearing RECOMMENDED MOTION. Move to approve consent agenda as presented COUNCIL ACTION [Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Forth Updated 11/02/12 AGENDA BILL W58 CITY OF BREMERTON CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeereeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeee SUBJECT: COUNCIL MEETING Date December 5, 2012 Department City Council Minutes of Meeting November 7, 2012 Presenter Council President Phone (360) 473 -5280 SUMMARY: Attached is a summary,of the City Council Meeting ATTACHMENTS* Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount) N/A STUDY SESSION AGENDA 0 No Discussion ❑ Full Presentation STUDY SESSION ACTION x❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION. Move to approve the Consent Agenda as presented COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, November 7, 2012 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, November 7, 2012, at 5 00 PM in Council Conference Room 603 of the NORM DICKs GOVERNMENT CENTER, 345 6" Street, Bremerton, Washington, with Council President Jim McDonald presiding Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye Flemister, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs Also present were Assistant City Attorney Mark Koontz, City Clerk Shannon Conn, and Legislative Assistant Lori Smith A COUNCIL BRIEFING was held to discuss General Council Business at 5 00 PM in the Council Conference Room At 5 30 PM the meeting moved to the Meeting Chambers The Pledge of Allegiance was led by Council Member Leslie Daugs followed by the invocation provided by Reverend Michael Walter of Kitsap Unitarian Universalist Fellowship PUBLIC RECOGNITION Mike Walton Marketing Director of the Kitsap Family YMCA, provided an update on the status of the construction project and also reported on the activities and upcoming events at the "Y" Jerry McDonald invited the community to hear motivational speaker Roger Brooks present "Making Bremerton and Port Orchard a Destination' on Monday, November 26 from 6 00 to 8 00 PM at SeeFilm Cinema He will accept any donations toward the $2,000 00 cost Larry Meyers referred to the current rate study in progress, and asked if the City would consider not charging the higher sewer rates in the summertime for the water that is going on the lawns because he was concerned about all the unsightly brown grass during the summer Chal Martin confirmed that a water meter is at every service location, and that the sewer rates are based on the average water consumption during the 6 -month period during winter months (Oct/Nov /Dec and Jan /Feb /Mar) but sewer rates are not charged for additional water used during the summer Robert Parker expressed support for the City's LEAN Graffiti program currently being used in the Charleston area, and hopes the program will expand to other areas of the City MAYOR'S REPORT • Introduced Bremerton High School Football Coach Nate Gilliam along with several senior football players, and encouraged the community to support their first trip to the State Playoffs in 19 years this Friday, November 9 at 7 00 PM at the Silverdale Stadium, • Announced a series of events from November 13 to 17 to promote "Re -Power Bremerton Week' including a service project with Habitat for Humanity at Bay Vista from November 15 at 8 30 AM to Saturday, November 17 at 2 30 PM, and with Puget Sound Energy for the "Re- Energize Your Lighting Event' on Tuesday, November 13 from 8 00 AM to 5 00 PM and on Wednesday, November 14 from 9 00 AM to 7 00 PM in the Meeting Chambers, • Invited Bremerton High School DECA students who organize the annual Thanksgiving Outreach Dinner that will be served for those in need at the Sons of Norway Hall on Tuesday, November 20 beginning at 10 00 AM until the food is gone (approx 5 00 PM), • Proclaimed the Month of November 2012 as "Pancreatic Cancer Awareness Month ", and invited Joan Mabut with the Pancreatic Cancer Action Network to accept the proclamation as well as discuss the importance of educating our legislatures to support pancreas cancer research • Invited Sara Meagher Board President and Julia Zander, Market Manager for the Bremerton Farmers Market to provide an overview of the 2012 season, and also to announce the "Holiday Market' event on Sunday, November 18 from Noon to 4 00 PM here in the Meeting Chambers, City Council Reg Mtg Minutes Wednesday, November 7, 2012 Page 2 of 6 • To fight hunger, the "Send Hunger Packing' food drive will be held through the month of November with bins in various locations around the City to collect non - perishable food donations, and on Sunday, the "K►tsap Interfaith Network Hunger Walk' would begin at 2 00 PM from Our Lady Star of the Sea Church to the Norm Dicks Government Center with a 3 00 Program, and • Hoped the Council and community would attend the Veteran's Day event "Honor All Who Served' organized by the Navy League and will be held at the Kitsap Sun Pavilion on Monday, November 12 from 9 00 AM to 1 00 PM, with the program scheduled from 10 30 to 11 45 AM CONSENT AGENDA 5A Check Numbers 350655 through 350959, and EFT -12272 through EFT -12335 in the amount of $2,703,906 40, Regular Payroll and Payouts for the pay period ending October 15, 2012 in the amount of $707,843 69, Regular Payroll for the pay period ending October 31, 2012 in the amount of $764,720 45, and Retiree Payroll for the pay period ending October 31, 2012 in the amount of $63,042 34 5B Minutes of Meeting — October 17, 2012 5C Minutes of Budget Workshop — October 22, 2012 5D Minutes of Study Session — October 24, 2012 5E Minutes of Budget Workshop — October 29, 2012 5F Re- appointment of Greg Jose to the Bremerton Planning Commission 5G Re- appointment of Rick Tift to the Bremerton Planning Commission 5H Appointment of Shawntel (Shawn) D►nkuhn to the Bremerton Planning Commission 5I Appointment of David Farr to the Bremerton Design Review Board There were no questions or comments from the public, Shawn D►nkuhn was introduced 06:24:15 M /S /C (Arends /Runyon) Move to approve the CONSENT AGENDA as presented Voted in favor of Motion Daugs, Runyon, Wheeler, Flemister, Arends, Younger, Wofford, McDonald Abstained Brockus Motion carried 8 -Yes, 1- Abstention PUBLIC HEARINGS 6A — PUBLIC HEARING AND RELEASE OF INGRESS AND EGRESS ACCESS EASEMENT FOR BAY VISTA PLAT Chal Martin Public Works & Utilities Director, stated that the City of Bremerton has been approached by the Bremerton Housing Authority to vacate an ingress and egress easement which crosses the property across old roadways which are no longer being used The phased platting of the area has now been completed and all new roadways needed for access have been dedicated and constructed, and so the easement is no longer needed President McDonald opened the public hearing for comments With no comments received the public hearing was closed to the public and opened to the Council Members for discussion 06:26:11 Motion was made by Flem►ster, and seconded by Runyon Questions were asked by Runyon and Daugs, with responses provided by Mr Martin 06:27:45 M /S /C /U (Flemister /Runyon) Move to approve the release of the access easement and authorize the Mayor to finalize and execute the release document with substantially the same terms and conditions as presented City Council Reg Mtg Minutes Wednesday, November 7, 2012 Page 3 of 6 613 — PUBLIC HEARING AND RESOLUTION NO. 3183 APPROVING THE 2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDING RECOMMENDATIONS FOR INCLUSION IN THE 2013 CDBG /HOME ACTION PLAN Marie Vila CDBG Program Administrator, summarized that on May 16, 2012, City Council approved the 2013 CDBG /HOME Policy Plan outlining the CDBG and HOME Funding allocation process Based on that policy, the program's Grant Recommendation Committees (GRC) have developed funding recommendations for Council consideration and approval If approved, these submissions will be sent to the Department of Housing and Urban Development (HUD) in the City's 2013 Annual Action Plan Rosalyn Owens serving on "GRC — Public Services" also provided additional comments about the process President McDonald opened the public hearing for comments, which were received by Joe Roszack. Director of Kitsap Mental Health Services, Robert Parker and Stuart Walton Kitsap Community Resources With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion 06:47:18 Motion was made by Daugs, and seconded by Brockus Comments and questions were provided by Daugs, Brockus, Runyon, Wheeler, Wofford, Wheeler, and Flemister, with responses provided by Ms Vila 06:53:49 M /S /C (Daugs / Brockus) Move to pass Resolution No 3183 approving the 2013 funding recommendations to be included in the 2013 Action Plan to HUD, and authorize the Mayor to finalize and execute the contracts with substantially the same terms and conditions as presented once all funding has been secured and HUD has approved the Annual Action Plan Voted in favor of Motion Runyon, Wheeler, Flemister, Arends, Younger, Wofford, Brockus, McDonald Abstained Daugs Motion carried 8 -Yes, 1- Abstention 6C — PUBLIC HEARING ON REVENUE SOURCES FOR THE PROPOSED 2013 BREMERTON BUDGET (FOR COMMENT ONLY, NO ACTION): AND PUBLIC HEARING ON ORDINANCE NO 5197 LEVYING PROPERTY TAXES FOR COLLECTION IN 2013 (ACTION ANTICIPATED) Beckv Hasart Financial Services Director, clarified that the purpose of tonight's public hearing is to take comments on the proposed revenue sources, including property and EMS taxes, for the 2013 budget year Revenue sources are outlined in the 2013 Proposed Budget Document Property and EMS taxes are adopted separately by ordinance The City's property taxes are levied on an annual basis through passage of an ordinance Per Referendum No 47 (passed in November 1997) and Initiative 747, City's with a population over 10,000 are limited in how much they can increase property taxes to either 1% or the Implicit Price Deflator (IPD), whichever is lower. This year, the July over July IPD is 1 295% The attached ordinance recommends increasing both the general property tax levy and the EMS levy the full 1 % as allowed bylaw However, the EMS levy is also subject to the $ 050 per $1,000 of the assessed value cap, which limits our EMS collections for 2013 The attached ordinance also reauthorizes the tax collection to pay the debt service associated with the voter approved Public Safety Bond President McDonald opened the public heanng for comments, which were received by Todd Best . City Council Reg Mtg Minutes Wednesday, November 7, 2012 Page 4 of 6 With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion 07:16:23 Motion to approve the ordinance was made by Wofford, and seconded by Brockus.. Questions and comments were received by Brockus, Runyon, Wheeler, and Daugs, with responses provided by Ms Hasart and Fire Chief Al Duke . 07:27:51 M /S /C /U (Wofford /Brockus) Move to approve Ordinance No 5197 levying property, EMS, and public safety debt service taxes for collection in fiscal year 2013 6D — PUBLIC HEARING ON RESOLUTION NO. 3148 TO RECOVER ABATEMENT COSTS FOR THE PROPERTY LOCATED AT 2116 57 STREET Janet Lunceford Code Enforcement Officer, Community Development Department, explained that on April 13, 2012, the City secured the house and removed garbage and debris from the property located at 2116 5th Street pursuant to an order issued by the City of Bremerton Administrative Hearing Examiner The owner of the property stated that the house was occupied without her permission, had no water or sewer service, and acknowledged that is was a public nuisance She further acknowledged that she understood that the City would place a lien on the property title for the cost of the work The cost charged to the revolving abatement fund for this action totaled $2,410 24, which included administrative fees as specified in Rate Table C of the Bremerton Municipal Code The Nonce of Hearing was advertised in the Kitsap Sun on October 26, 2012, was posted on the front door of house on the property located at 2116 5 h Street, and was mailed to the property owner by both regular mad and electronic certified mail Council must now decide if the fees are dust and reasonable, and how they should be collected President McDonald opened the public hearing for comments, which were received by Dean O. Davis and Robert Parker With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion 07:33:40 Motion was made by Wheeler, and seconded by Wofford Comments and questions were provided by Wheeler and Runyon, with responses provided by Ms Lunceford 07:36:54 M /S /C /U (Wheeler/Wofford) Move to adopt Resolution No 3184, ordering that the fees incurred for securing the house and removing garbage and debris from the property located at 2116 5 Street be collected as reasonable abatement costs and become a lien against the property GENERAL BUSINESS 7A — ORDINANCE NO.5198 AMENDING SECTION 2.03.010 OF THE BREMERTON MUNICIPAL CODE (BMC) RELATING TO THE MAYOR'S COMPENSATION Becky Hasart Financial Services Director, stated that the proposed ordinance amends Section 2 03 010 of the Bremerton Municipal Code to reduce the Mayor's salary and eliminate the cost of living adjustment Comments from the public were received by Robert Parker Todd Best. and Jerry McDonald 07:43:070 Motion was made by Runyon, and seconded by Daugs Comments on the Main Motion were provided by Runyon and Daugs, with responses provided by Ms Hasart A proposal to delay this action until the hiring of a City Administrator could be considered was introduced by Wofford, with comments received by Brockus, Runyon, and Wheeler City Council Reg Mtg Minutes Wednesday, November 7, 2012 Page 5 of 6 07:49:10 Motion to Continue to a date certain of April 17, 2013 was made by Wofford, and seconded by Arends Comments on the Motion to Continue were provided by Daugs, Wofford, Runyon, and Wheeler . 07:52:15 Motion to Continue /S /F (Wofford /Arends) Move to Continue this item to a date certain of April 17, 2012 Voted in favor of Motion to Continue Arends, Wofford Brockus, Wheeler, Voted opposed to Motion to Continue Younger Daugs, Runyon, Flemister, McDonald Motion carried. 4 -Yes, 5 -No Additional comments on the Main Motion were provided by Brockus and Younger 07:54:33 M /S /C (Runyon /Daugs) Move to approve Ordinance No 5198 amending Section 2 03 010 of the Bremerton Municipal Code relating to the Mayor's compensation Voted in favor of Motion Younger, Wofford, Daugs, Brockus, Runyon, Wheeler, Flemister, Arends Voted in opposition to Motion McDonald Motion carried 8 -Yes, 1 -No COUNCIL MEMBER REPORTS Leslie Daugs hoped everyone would come to the Harvest Market on November 18 from Noon to 4 00 PM in the Chambers, and also wished everyone a happy Thanksgiving Adam Brockus announced the Annual Winterfest would be held on Friday, December 7 from 5 00 to 8 00 PM with activities downtown and in Manette, encouraged the community to attend the Bremerton High School Knights State Playoff football game this Friday at 7 00 PM at Silverdale Stadium against Archbishop Murphy from Everett, was pleased that Kitsap Sports was leaving Silverdale and relocating back to Bremerton, and thanked everyone who voted in the recent election Roy Runyon encouraged attendance at several local events including his next District 4 Community Meeting on Tuesday, November 27 from 5 30 to 6 30 PM in the Meeting Chambers, several "Medicare Part D Assistance" events sponsored by the State Insurance Commissioner that will be held in several Kitsap County locations, and the presentation on "Making Bremerton and Port Orchard a Destination' on Monday, November 26 from 6 00 to 8 00 PM at SeeFilm Cinema on 4` Street Greg Wheeler hoped people would attend the next Union Hill Neighborhood Meeting on Monday, November 12 from 6 30 to 7 30 PM in the basement at the Community of Christ Memorial Lutheran Church, and attend his next District 5 Community Meeting on Monday, November 17 beginning at 6 30 PM also in the basement at the Community of Christ Memorial Lutheran Church Faye Flemister enjoyed volunteering at the Washington Youth Academy where mock job interviews were held for the cadets, and also enjoyed attending the Women in Red Financial Conference along with Mayor Patty Lent, and thanked Council Member Daugs for attending her daughter's concert. Carol Arends mourned the passing of former Council Member Charles R "Tiny" Collins who served 2 terms representing District 7 from 1986 through 1993 President McDonald reminded the public that no Council Meeting would be held the week of November 21 With no further business, he adjourned the Council Meeting at 8 05 PM City Council Reg Mtg. Minutes Wednesday, November 7, 2012 Page 6 of 6 Prepared and Submitted by -�� LORI SMITH Legislative Assistant Attest SHANNON CORIN, City Clerk JIM McDONALD, City Council President JM SC Is cg AGENDA BILL CITY OF BREMERTON 45co CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeereeeeeeeeeeeeereeeeeeeeeeeeeeeerereeeeeeeeseeeeeeeeeeeei SUBJECT: COUNCIL MEETING Date December 5, 2012 Department City Council Minutes of Study Session Presenter Council President November 14, 2012 Phone (360) 473 -5280 SUMMARY: Attached is a summary of the City Council Meeting ATTACHMENTS. Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount) N/A STUDY SESSION AGENDA 0 No Discussion ❑ Full Presentation STUDY SESSION ACTION. NO Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES November 14, 2012 A Study Session of the City Council of the City of Bremerton was called to order in the Mayor's Conference Room of the NORM DICKS GOVERNMENT CENTER, 345 61h Street, Bremerton, Washington, Wednesday, November 14, 2012, at 4 00 PM, with Council President Jim McDonald presiding Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye Flemister, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs. Christine Grenier, Council Assistant, was present to provide staff support President McDonald emphasized that the Study Session was open to the public but there would be no opportunities for input or participation, explained that Item B -6 has been added to the agenda with action anticipated, and announced that approved items by Council will be placed on the December 5, 2012 Council Meeting Agenda, or as indicated A NO PRESENTATIONS - The following items are budgeted items and /or have been reviewed by the appropriate Council Committee 1 Contract Modification for long -term groundwater monitoring at former Chevron Property— Tom Knuckey, City Engineer, Public Works & Utilities Department Consent Agenda 2 Agreed Order with Department of Ecology (DOE) for monitoring and reporting at former Chevron Property — Tom Knuckey, City Engineer, Public Works & Utilities Department Consent Agenda 3 Ordinance to repeal Chapter 2 43 of the Bremerton Municipal Code (BMC) regarding the Gold Mountain Complex Board of Directors — Wyn Birkenthal, Parks & Recreation Director Consent Agenda B FULL DISCUSSION ITEMS 4 2012 United Way Campaign Briefing — Shannon Conn, City Clerk Information Only 5 Adopt Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement 2012 Amendments — Mary McClure, KRCC Executive Director Consent Agenda 6 Appointment of Public Works Administration Division Manager at a Step Higher than Rate 1 in Band 11 — Chal Martin, Public Works & Utilities Director With Action 04:32:00 Motion was made by Wofford, and seconded by Brockus Comments and questions were provided by Runyon, Daugs, Brockus, Wheeler, and Younger, with responses provided by Mr Martin 04:40:00 M /S /C (Wofford /Brockus) Move to approve the hire of Milenka Hawkins -Bates as Public Works Administration Division Manager at Rate 4 in Pay Band 11 Voted in favor of Motion Daugs, Brockus, Runyon, Flemister, Arends, Younger, Wofford, and McDonald Voted against Motion Wheeler Motion carried 8 -Yes, 1 -No 7 Discussion on Utility Rate Study "Fee Structure & Classifications" — Becky Hasart, Financial Services Director Information Only (Discussion will continue on December 12 ...) City Council Study Session Minutes Wednesday, November 14, 2012 Page 2 of 2 President McDonald called a recess from 5 45 to 6 10 PM, and then reopened the discussion on the Utility Rate Study.. C GENERAL COUNCIL BUSINESS General Council Business was briefly discussed President McDonald announced that due to a lack of time, the Budget Workshop was not held tonight but the Budget Workshop scheduled after the Study Session on November 28 would still be held as scheduled With no further business, the Council Study Session was adjourned at 7 20 PM Prepared and Submitted by CHNST Council Assistant Attest SHANNON CORIN, City Clerk JIM McDONALD, City Council President JM SC Is cg AGENDA BILL CITY OF BREMERTON 65b CITY COUNCIL SUBJECT: COUNCIL MEETING Date December 5, 2012 Department City Council Minutes of Study Session and Presenter Council President Budget Workshop - November 28, 2012 Phone (360) 473 -5280 SUMMARY- Attached is a summary of the City Council Meeting ATTACHMENTS Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount) N/A STUDY SESSION AGENDA © No Discussion ❑ Full Presentation STUDY SESSION ACTION. 9 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented COUNCIL ACTION. ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES November 28, 2012 A Study Session of the City Council of the City of Bremerton was called to order in the Council Conference Room 603 of the NORM DICKs GOVERNMENT CENTER, 345 6 Street, Bremerton, Washington, Wednesday, November 28, 2012, at 400 PM, with Council President Jim McDonald presiding Council Members present were Nick Wofford, Eric Younger, Carol Arends, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs Council Member Faye Flemister was absent Lori Smith, Legislative Assistant, was present to provide staff support President McDonald emphasized that the Study Session was open to the public but there would be no opportunities for input or participation, and announced that approved items by Council will be placed on the December 5, 2012 Council Meeting Agenda, or as indicated A NO PRESENTATIONS - The following items are budgeted items and /or have been reviewed by the appropriate Council Committee I Bid Award to EC Power Systems for Emergency Generator Purchase for Fire Station #1 — Fire Chief Al Duke Consent Agenda 2 Proposed Resolution amending and reestablishing City Rates and Fees for 2013 — Becky Hasart, Financial Services Director Consent Agenda 3 Proposed Ordinance amending Section 3 86 200 of the Bremerton Municipal Code (BMC) relating to Business and Occupation (B &O) Taxes, and further amending Chapter 3 48 of the BMC (The two mayor changes relate to "digital goods" and confidentiality of tax returns) — Becky Hasart, Financial Services Director Consent Agenda B FULL DISCUSSION ITEMS 4 Proposed Public Hearing and Ordinance to adopt the 2012 Comprehensive Plan Amendment Docket — Doug McIntyre and Allison Daniels, Department of Community Development Public Hearing on December 19 5 BUDGET WORKSHOP Continued discussion on the City of Bremerton 2013 Proposed Budget — Becky Hasart, Financial Services Director, and Caroline Tompson, Budget Analyst General Business President McDonald called a recess from 5 40 to 6 10 PM, and then reopened the Budget Workshop for continued discussion C GENERAL COUNCIL BUSINESS General Council Business was briefly discussed With no further business, the Council Study Session was adjourned at 7 40 PM Prepared and Submitte by wacs LO I SMITH Legislative Assistant City Council Study Session & Budget Workshop Minutes Wednesday, November 28, 2012 Page 2of2 Attest* SHANNON CORIN, City Clerk JIM McDONALD, City Council President JM SC Is cg r AGENDA BILL jrE CITY OF BREMERTON CITY COUNCIL ■■ srrrrrrrrrrrrrrrrrrrrrrrrs�rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr SUBJECT Contract Modification No 1 to Study Session Date November 14, 2012 Former Chevron Property Remediation COUNCIL MEETING Date December 5, 2012 Contract with Parametrix Department PW &U, Engineering Presenter Tom Knuckey Phone 473 -2376 SUMMARY The City has completed remedial construction as required under Agreed Order DE- 07TCPHQ -5024 at the former Chevron property The cleanup construction was completed in two phases with infection of a chemical oxidizing agent being the primary removal method in the lower yard Per the terms of the order, the City is committed to on -going groundwater monitoring until contamination levels drop to MTCA A levels — for planning purposes this is estimated to be achieved in 5 -years The requested action is modification of the consultant contract to perform groundwater monitoring and reporting to Ecology over a 5 -year term ATTACHMENTS: 1 Council Summary, 2 Contract Modification FISCAL IMPACTS (Include Budgeted Amount) The 2012 budget is $80,000 and the 2013 requested budget is $30,000 Projected 2013 expenditures will exceed the budget, therefore, a mid- year budget adjustment is anticipated STUDY SESSION AGENDA Nx No Discussion ❑ Full Presentation STUDY SESSION ACTION: Nx Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Contract Modification No 1 to the Professional Services Agreement with Parametrix, Inc , in the amount of $225,256 (including sales tax) and authorize the Mayor to finalize and execute the document with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 FORMER CHEVRON PROPERTY LONG -TERM MONITORING COUNCIL SUMMARY Background In 2007, the City executed Agreed Order DE- 07TCPHQ -5024 with Ecology for cleanup of the former Chevron property The cleanup construction was completed in two phases, the initial phase was performed in 2009 and consisted of injection of a chemical oxidizing reagent in the lower yard (north half of the site), and excavation and removal of small contamination "hot spots" in the upper yard (south half of the site ) The second phase was performed in 2011 and consisted of injection of additional oxidizing reagent at hot spots remaining in the lower yard The chemical injection approach was selected since the mass excavation alternative for the entire site was very expensive ($5 7M) and was only eligible for a 75% grant, compared to the selected alternative ($1 1 M) which was grant funded at 90% Ongoing Work at the Property The injected chemicals coupled with naturally occurring bacteria will continue to reduce residual contamination at the site for years Remaining work is limited to groundwater monitoring and reporting to track the reduction of contamination until MTCA A levels are reached — for planning purposes, it is estimated this will be achieved in 5 -years On -going groundwater monitoring was previously committed to in the initial Agreed Order and associated Remedial Investigation and Feasibility Study Given completion of the "Interim Action" (the remediation construction), Ecology has proposed we execute a second Agreed Order for the site — this order would formalize the scope and schedule for on -going groundwater monitoring, reporting, and outline institutional controls (use restrictions) for the site The second agreed order would also make the City eligible for grant funding under a separate remedial action grant for the first year of monitoring and reporting at the site Existing Contract with Parametrix In January, 2011, the City executed a contract with Parametrix for Professional Services, Field Services and Laboratory services associated with completing the remedial work described above At the time of execution of this contract, follow -on long -term monitoring was anticipated, however, the amount of monitoring could not be quantified and so it was not included in the contract First Agenda Bill: Contract Modiification with Parametrix, Inc for Long -term Groundwater Monitoring and Reporting The consultant scope of work is to develop required reports and perform long- term groundwater monitoring until contamination levels drop to MTCA A levels For the contract, this is estimated to be achieved in 5 -years The consultant scope includes the following • First year (Dec 2012 — Dec 2013) — the consultant work includes work plan preparation and 2 semiannual groundwater sampling events (January Former Chevron Property Long -term Groundwater Monitoring Pagel of 3 and July — wet and dry events) and reports submitted to Ecology, total cost is $60,000 Assuming approval of the Second Agreed Order, this work would be eligible for grant funding at 90% • Second through fourth years (2014 - 2016) — the consultant work includes semiannual groundwater sampling events and reports, this work is not grant eligible • Fifth year (2017) — the consultant work includes 4 quarterly groundwater sampling events and a final report, this work is not grant eligible The initial contract was for $123,786, the proposed modification is for $225,256 for a new contract total of $349,042 Second Agenda Bill: Agreed Order with Ecology for Long -Term Monitoring and Reporting at the Former Chevron Property While the existing Agreed Order obligated the City to perform long term monitoring, the actual monitoring was not quantified (number of wells to be monitored, number of sampling events per year), and the type of institutional controls to be put on the property was not quantified Ecology has requested the City execute a second Agreed Order on the property to formalize these issues The advantage to the City is that upon execution of the Agreed Order, the City becomes eligible for an Ecology grant to reimburse 90% of the costs associated with the first year of monitoring, reporting, and other activities associated with the property Financial Summary: Anticipated project costs are presented below — costs include both City labor and reimbursement of Ecology for their labor which is not grant eligible 2012 2013 2014 2015 2016 2017 Project Cost (1) 70,500 54,500 38,500 38,500 38,500 78,500 Consultant Fee (2) 15,900(3) 48,000 32,000 32,000 32,000 72,000 Grant 55,000 45,500 Reimbursement 9 -11 Committee 4,500 Donation Net Expense 11,000 9,000 38,500 38,500 38,500 78,500 Notes (1) Project costs include an estimated $2,500 City and $4,000 Ecology costs per annum from 2013 - 2017 (2) The 2012 fee is from both the existing contract, and proposed Contract Modification (3) Includes $6,900 in expenses from prior to amendment Former Chevron Property Long -term Groundwater Monitoring Page 2 of 3 The expenditure forecast presented above is not consistent with the CIP and budget request due to project delays resulting from delays in receiving the Agreed Order from Ecology A 2013 mid -year budget adjustment is anticipated to account for the projected $24,500 shortfall in expenditure authority Former Chevron Property Long -term Groundwater Monitoring Page 3 of 3 CONTRACT MODIFICATION AGREEMENT NO. 1 BETWEEN THE CITY OF BREMERTON AND PARAMETRIX PROJECT Former Chevron Property Remediation CONSULTANT Parametrix, Inc DATE December 5, 2012 THIS CONTRACT MODIFICATION AGREEMENT SPECIFICALLY AMENDS THE FORMER CHEVRON PROPERTY REMEDIATION AGREEMENT (the "Contract ") entered into between the City of Bremerton and Parametrix on January 27, 2011 All provisions in the Contract shall remain in full force and effect except as expressly modified by this document For valuable consideration and by mutual consent of the parties, the modifications to the Contract are as follows I. Section I. Scope , is modified as follows See Amended Scope of Work attached as Exhibit A) Section II. Term , is modified as follows The Consultant shall complete the work described in this Contract Modification Agreement by December, 2017 Section III. Compensation is modified as follows The original contract amount was One Hundred Twenty Three Thousand Seven Hundred Eighty -Six Dollars ($123,786.00) The City shall pay the Consultant for the additional work described above, based on time and materials, an amount not to exceed Two Hundred Twenty Five Thousand Two Hundred Fifty -Six Dollars ($225,256.00) for a total amended contract amount of Three Hundred Forty Nine Thousand Forty -Two Dollars ($349,042.00), including this Contract Modification II. Consultant accepts all requirements of this Contract Modification by endorsing below. Consultant further agrees that this Contract Modification constitutes full and final settlement of all of the Consultant's claims for contract time and for all costs of any kind, including without limitation, costs of delays related to any work either covered or affected by this Contract Modification, claims related to on -site or home office overhead, or lost profits. This Contract Modification does not limit the City's right to bring a claim for past performance. CONTRACT MODIFICATION I Project Number The undersigned consultant approves the foregoing Contract Modification as to the changes, if any, in the contract price specified for each item, including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work due to said Contract Modification. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that this Contract Modification shall be effective when approved by the City of Bremerton. The parties whose names appear below warrant that they are authorized to enter into a contract modification that is binding on the parties of this contract. In addition, Consultant warrants that it has or will inform the surety of this change, and shall take appropriate action to modify any bonds required under the contract to address this change. IN WITNESS WHEREOF, the parties have executed this Contract Modification on the day and year first written above. City Engineer / Public Works Director approved to process Initials and Date CONSULTANT. THE CITY OF BREMERTON By By Patty Lent Its Its Mayor DATE DATE APPROVED AS TO FORM: ATTEST: Bremerton City Attorney City Clerk NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: Dave Dinkuhn Tom Knuckey, PE Senior Engineer City Engineer Parametrix City of Bremerton Engineering Department 4660 Kitsap Way, Suite A 3027 Olympus Drive Bremerton, WA 98312 Bremerton WA, 98312 360 - 377 -0014 360 - 473 -2376 R \LEGAL \Contracts \FORMS \Contract Modification (2003) doc CONTRACT MODIFICATION 2 Project Number AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT Agreed Order with Ecology for Study Session Date November 14, 2012 Long -Term Monitoring and Reporting at the COUNCIL MEETING Date December 5, 2012 Former Chevron Property Department PW &U Engineering Presenter Tom Knuckey Phone 473 -2376 SUMMARY The City has completed remedial construction as required under Agreed Order DE- 07TCPHQ -5024 at the former Chevron property Per the terms of the order, the City is committed to on -going groundwater monitoring until contamination levels drop to MTCA A levels — for planning purposes this is estimated to be achieved in 5 -years Ecology has requested the City execute a second Agreed Order (DE- 12TCPHQ -9509) which quantifies monitoring and reporting requirements The second Agreed Order makes the City eligible to expend grant funds for the first year of monitoring The requested action is approval of Agreed Order DE- 12TCPHQ -9509 ATTACHMENTS 1 Council Summary, 2 Agreed Order FISCAL IMPACTS (Include Budgeted Amount) The 2012 budget is $80,000 and the 2013 requested budget is $30,000 Projected 2013 expenditures will exceed the budget, therefore, a mid- year budget adjustment is anticipated I STUDY SESSION AGENDA. N No Discussion ❑ Full Presentation STUDY SESSION ACTION ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve Agreed Order DE- 12TCPHQ -9509 and authorize the Mayor to finalize and execute the document with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 FORMER CHEVRON PROPERTY LONG -TERM MONITORING COUNCIL SUMMARY Bac ground In 2007, the City executed Agreed Order DE- 07TCPHQ -5024 with Ecology for cleanup of the former Chevron property The cleanup construction was completed in two phases, the initial phase was performed in 2009 and consisted of infection of a chemical oxidizing reagent in the lower yard (north half of the site), and excavation and removal of small contamination "hot spots" in the upper yard (south half of the site ) The second phase was performed in 2011 and consisted of infection of additional oxidizing reagent at hot spots remaining in the lower yard The chemical infection approach was selected since the mass excavation alternative for the entire site was very expensive ($5 7M) and was only eligible for a 75% grant, compared to the selected alternative ($1 1 M) which was grant funded at 90% Ongoing Work at the Property The infected chemicals coupled with naturally occurring bacteria will continue to reduce residual contamination at the site for years Remaining work is limited to groundwater monitoring and reporting to track the reduction of contamination until MTCA A levels are reached — for planning purposes, it is estimated this will be achieved in 5 -years On -going groundwater monitoring was previously committed to in the initial Agreed Order and associated Remedial Investigation and Feasibility Study Given completion of the "Interim Action" (the remediation construction), Ecology has proposed we execute a second Agreed Order for the site — this order would formalize the scope and schedule for on -going groundwater monitoring, reporting, and outline institutional controls (use restrictions) for the site The second agreed order would also make the City eligible for grant funding under a separate remedial action grant for the first year of monitoring and reporting at the site Existing Contract with Parametrix In January, 2011, the City executed a contract with Parametrix for Professional Services, Field Services and Laboratory services associated with completing the remedial work described above At the time of execution of this contract, follow -on long -term monitoring was anticipated, however, the amount of monitoring could not be quantified and so it was not included in the contract First Agenda Bill: Contract ModiFcation with Parametrix, Inc for Long -term Groundwater Monitoring and Reporting The consultant scope of work is to develop required reports and perform long- term groundwater monitoring until contamination levels drop to MTCA A levels For the contract, this is estimated to be achieved in 5 -years The consultant scope includes the following • First year (Dec 2012 — Dec 2013) — the consultant work includes work plan preparation and 2 semiannual groundwater sampling events (January Former Chevron Property Long -term Groundwater Monitoring Page 1 of 3 and July — wet and dry events) and reports submitted to Ecology, total cost is $60,000 Assuming approval of the Second Agreed Order, this work would be eligible for grant funding at 90% • Second through fourth years (2014 - 2016) — the consultant work includes semiannual groundwater sampling events and reports, this work is not grant eligible • Fifth year (2017) — the consultant work includes 4 quarterly groundwater sampling events and a final report, this work is not grant eligible The initial contract was for $123,786, the proposed modification is for $225,256 for a new contract total of $349,042 Second Agenda Bill: Agreed Order with Ecology for Long -Term Monitoring and Reporting at the Former Chevron Property While the existing Agreed Order obligated the City to perform long term monitoring, the actual monitoring was not quantified (number of wells to be monitored, number of sampling events per year), and the type of institutional controls to be put on the property was not quantified Ecology has requested the City execute a second Agreed Order on the property to formalize these issues The advantage to the City is that upon execution of the Agreed Order, the City becomes eligible for an Ecology grant to reimburse 90% of the costs associated with the first year of monitoring, reporting, and other activities associated with the property Financial Summary: Anticipated project costs are presented below — costs include both City labor and reimbursement of Ecology for their labor which is not grant eligible 2012 2013 2014 2015 2016 2017 Project Cost (1) 70,500 54,500 38,500 38,500 38,500 78,500 Consultant Fee (2) 15,900(3) 48,000 32,000 32,000 32,000 72,000 Grant 55,000 45,500 Reimbursement 9 -11 Committee 4,500 Donation Net Expense 11,000 9,000 1 38,500 1 38,500 1 38,500 1 78,500 Notes (1) Project costs include an estimated $2,500 City and $4,000 Ecology costs per annum from 2013 - 2017 (2) The 2012 fee is from both the existing contract, and proposed Contract Modification (3) Includes $6,900 in expenses from prior to amendment Former Chevron Property Long -term Groundwater Monitoring Page 2 of 3 The expenditure forecast presented above is not consistent with the CIP and budget request due to project delays resulting from delays in receiving the Agreed Order from Ecology A 2013 mid -year budget adjustment is anticipated to account for the projected $24,500 shortfall in expenditure authority Former Chevron Property Long -term Groundwater Monitoring Page 3 of 3 STATE OF WASHINGTON DEPARTMENT OF ECOLOGY In the Matter of Remedial Action by: AGREED ORDER CHEVRON TANK FARM PORT No. DE- 12TCPHQ -9509 WASHINGTON NARROWS TO The City of Bremerton Public Works Department 3027 Olympus Drive Bremerton, Washington 98310 TABLE OF CONTENTS 1 . INTRODUCTION .......................... ............................... ..... ........................4 Il. JURISDICTION .............................................................................. ..............................4 III. PARTIES BOUND .. ...... ..... .......................................... ..............................5 IV. DEFINITIONS ................................................................... ..............................5 V. FINDINGS OF FACT ................. ........................................ ..............................5 VI. ECOLOGY DETERMINATIONS ............................................. ..............................9 VII WORK TO BE PERFORMED ... ............................... ..... ....... .. ...10 VIII. TERMS AND CONDITIONS OF ORDER ........................... ................. .......11 A. Public Notice ...................................................................... .............................11 B. Remedial Action Costs .. ... .... .. ...... .. . . ..... . . ..11 C. Implementation of Remedial Action .. ............................... ............... ........12 D. Designated Project Coordinators ................... ................. .............................12 E. Performance ............................................................. .............................13 F. Access ..................................................................... .............................14 G. Sampling, Data Submittal, and Availability ............................. .............................14 H Public Participation.. ... ...... .15 I. Retention of Records ........... ........................................... .............................16 Agreed Order No. DE- 12TCPHQ -9509 Page 2 of 24 J Resolution of Disputes.. .... ............................... ...... ..17 K . Extension of Schedule ............................................................... .............................17 L. Amendment of Order ....................... ............................... .. ......................19 M . Endangerment ................. ............................... .. ............. .............................19 N. Reservation of Rights..... . . . . . .. ...................20 O Transfer of Interest in Property..... ......................... .............................21 P. Compliance with Applicable Laws ....................................... .............................21 Q Land Use Restrictions ..... ................... ..........................22 R Periodic Review ............................................... .............................22 S. Indemnification .......... ...... ........... ....... ......... .... .23 IX. SATISFACTION OF ORDER... ... . .. . ............ .............................23 XENFORCEMENT . ............................................................. .............................23 EXHIBIT -A Site Diagram EXHIBIT -B Scope of Work, Work Plan & Schedule EXHIBIT -C Applicable, Relevant and Appropriate Requirements EXHIBIT -D Policy 840 (Data Submittal Requirements) ATTACHMENT -1 January 2012 Draft Cleanup Action Plan ATTACHMENT -2 January 2012 Technical Memorandum Former Chevron Property Performance Groundwater Monitoring Results ATTACHMENT -3 September 2011 Remedial Investigation and Feasibility Study Report ATTACHMENT -4 August 2007 Site Investigation Report Evergreen Park/Former Chevron Bulk Fuel Plant Bremerton, Washington ATTACHMENT -5 February 2006 Technical Memorandum Chevron Property Sediment Characterization Study ATTACHMENT -6 June 2005, Due Diligence Investigation ATTACHMENT -7 Groundwater Monitoring Results (1988 through 2003) ATTACHMENT -8 March 1994, Supplemental Soil Investigation Results Agreed Order No. DE- 12TCPHQ -9509 Page 3 of 24 ATTACHMENT -9 November 1991, Soil Vapor Extraction System Results ATTACHMENT -10 July 1991, Site Hazard Assessment Results ATTACHMENT -11 March 1989, Soil investigation Results including some Product Recovery ATTACHMENT -12 November 1988, Soil and Groundwater Investigation Results Agreed Order No. DE- 12TCPHQ -9509 Page 4 of 24 I. INTRODUCTION The mutual objective of the State of Washington, Department of Ecology (Ecology) and the City of Bremerton (the City) under this Agreed Order (Order) is to provide for remedial action at a facility where there has been a release or threatened release of hazardous substances This Order requires the City to complete a final cleanup action plan for the site and to prepare, and submit to Ecology for review and approval, a draft and a final long -term groundwater monitoring plan for the site and a detailed outline of a future soil monitoring plan for the site. The two plans may be parts of a single site monitoring plan. The soil monitoring plan shall be used to demonstrate that soil remediation is complete and that soil use restrictions may be removed. The long -term groundwater monitoring plan and the soil monitoring plan will include a field sampling plan, a quality assurance plan, and a health and safety plan. The City shall prepare, and submit to Ecology for review and approval, a draft and a final institutional controls plan for the site The institutional controls plan shall state what institutional controls or procedures the City has already established, what institutional controls or procedures the City will establish, and a specific timetable for their establishment. The institutional controls plan shall identify what entity will implement, maintain, and enforce each institutional control and how the protectiveness of each institutional control will be measured. As part of the institutional controls plan, the City shall prepare, and submit to Ecology for review and approval, a draft and a final environmental covenant to be attached to the property deed for the site. The City shall carry out and execute all plans approved by Ecology. Ecology believes the actions required by this Order are in the public interest. II. JURISDICTION This Agreed Order is issued pursuant to the Model Toxics Control Act (MTCA), RCW 70.105D 050(l) Agreed Order No. DE- 12TCPHQ -9509 Page 5 of 24 III. PARTIES BOUND This Agreed Order shall apply to and be binding upon the Parties to this Order, their successors and assigns. The undersigned representative of each party hereby certifies that he or she is fully authorized to enter into this Order and to execute and legally bind such party to comply with this Order The City agrees to undertake all actions required by the terms and conditions of this Order. No change in ownership or corporate status shall alter the City's responsibility under this Order The City shall provide a copy of this Order to all agents, contractors, and subcontractors retained to perform work required by this Order, and shall ensure that all work undertaken by such agents, contractors, and subcontractors complies with this Order IV. DEFINITIONS Unless otherwise specified herein, the definitions set forth in Chapter 70.1051) RCW and Chapter 173 -340 WAC shall control the meanings of the terms in this Order. A. Site- The Site is referred to as Chevron Tank Farm Port Washington Narrows and is generally located at 1310 Highland Avenue in Bremerton, Washington 98310. The Site is defined by the extent of contamination caused by the release of hazardous substances at the Site The Site is more particularly described in the Site diagram (Exhibit A). The Site constitutes a Facility under RCW 70.105D 020(5). B. Parties Refers to the State of Washington, Department of Ecology and the City of Bremerton C. Potentially Liable Person (PLP) Refers to the City of Bremerton. D. Agreed Order or Order Refers to this Order and each of the exhibits to this Order. All exhibits are integral and enforceable parts of this Order. The terms "Agreed Order" or "Order" shall include all exhibits to this Order. V. FINDINGS OF FACT Ecology makes the following findings of fact, without any express or implied admissions of such facts by the City: Agreed Order No. DE- 12TCPHQ -9509 Page 6 of 24 A The Chevron Tank Farm Port Washington Narrows site (the "Site ") is located at 1310 Highland Avenue, Bremerton, Washington (the "Property ") and consists of approximately 1.5- acres. The Property is bounded on the northeast by the Port Washington Narrows, on the northwest by a small inlet (Smith Cove), on the southeast by a residential area and on the southwest by a mixed residential and business area. (Exhibit -A). From approximately 1950 until 1988, Chevron operated a bulk storage and distribution center for petroleum products on the property, including a fuel distribution dock B Currently the City of Bremerton owns the Property and it is a vacant piece of land. (Exhibit -A) C Three rounds of groundwater sampling were collected in 2010 and two rounds in 2011 as well as one round of groundwater sampling during the 2008 remedial investigation. All of these groundwater samples were analyzed for total petroleum hydrocarbons - gasoline (TPH - G), TPH- diesel (TPH -D), TPH -Oil (TPH -O), benzene, ethylbenzene, toluene, and xylenes (BETS, with selected samples being analyzed for total and dissolved lead, total and dissolved iron, and dissolved manganese. Results of the latest round of groundwater sampling (September 2011) showed elevated concentrations of TPH -G (2,100 µg11), TPH -D (1,300 µg/1), and benzene (3 10 µg/1). TPH — Oil was not detectable in any of the samples. These concentrations exceed MTCA Method -A cleanup levels of 800 µg/1 (TPH -G), 500 µg/1 (TPH -D and TPH -O), and 5 µg/1 (benzene). In March of 2008, Parametrix conducted an interim action at the site The interim action consisted of excavation of soil "hot spots" and in -situ chemical treatment of contaminated soil Confirmational soil samples were collected six months following the in -situ soil treatment to determine the efficacy of the treatment. Twelve soil samples were collected from the treatment area and analyzed for gasoline, diesel, oil, benzene, ethylbenzene, toluene, xylenes, and polycyclic aromatic hydrocarbons. Exceedances for gasoline (1,000 mg/kg), benzene (5.4 mg/kg), ethylbenzene (20 mg/kg), total xylenes (94 mg/kg) and polycyclic aromatic hydrocarbons (2.7 mg/kg — toxicity equivalent method) were found Ten new groundwater Agreed Order No. DE- 12TCPHQ -9509 Page 7 of 24 monitoring wells were installed Eleven groundwater samples collected from nine new wells and two existing wells. Exceedances of gasoline (2,100 µg/l, diesel (1,300 µg/1), and benzene (3 10 µg/1) were found D. In March of 2008, Parametrix conducted a remedial investigation and feasibility study at the site. Groundwater and soil samples were collected from four surface stations, nineteen push probes, and two new and ten existing groundwater monitoring wells. Bench and pilot studies of in -situ chemical treatment of the contaminated soil were also conducted. Following the bench and pilot studies, an interim action — consisting of excavation of contaminated soil "hotspots" and chemical treatment of the contaminated soil was carried out. E. In February of 2006, Parametrix conducted a sediment characterization study. Sediment samples were collected from nineteen subtidal and intertidal locations. One location failed State of Washington sediment management standards for chemistry but successfully passed a followup bioassay test. In 2007, Ecology requested Hart - Crowser to conduct a similar sediment characterization study of thirteen sediment locations All sediment samples successfully passed both chemical and bioassay tests. F. In June 2005, Parametrix conducted a Due Diligence Investigation for the City of Bremerton to evaluate the then - current conditions at the Site. The evaluation included a comprehensive summary of site investigation, previous remediation efforts, data gaps, additional investigations, a number of potential remedial alternatives and recommendations for the property's acquisition (Attachment -6) G. Eighteen groundwater monitoring wells were placed on the site; sixteen remain. From October 1988 to October 2003, a total of thirty -one rounds of quarterly, semiannual and/or annual groundwater sampling have been conducted at the site All of these groundwater samples were analyzed for total petroleum hydrocarbons - gasoline (TPH -G), TPH- diesel (TPH -D), TPH - Oil (TPH -0), benzene, ethylbenzene, toluene, xylenes (BETX) and dissolved lead. Results of the latest round of groundwater sampling (October 2003) showed elevated concentrations of TPH -G (9,000 µg/1), TPH -D (32,000 µg/1), TPH -0 (5,200 µg/1) and benzene (700 µg/1). These Agreed Order No. DE- 12TCPHQ -9509 Page 8 of 24 concentrations exceed MTCA Method -A cleanup levels of 800 µg/l (TPH -G), 500 µg/l (TPH -D and TPH -O) and 5 gg/l (benzene). (Attachment -7). H. In March 1994, Chevron Company conducted a Supplemental Site Assessment. As a part of this investigation, nine soil borings were drilled and six borings were converted into groundwater monitoring wells A total of thirteen soil samples were selected and sent to an off - site laboratory for TPH -G, TPH -D, TPH -O, polycyclic aromatic hydrocarbon (PAHs) and total lead analysis. Some of the soil samples showed elevated concentrations of TPH -G (1,300 mg/kg), TPH -D (11,000 mg/kg) and PAH range of 1.2 mg/kg to 24 mg/kg. These concentrations exceed MTCA Method -A cleanup levels of 100 mg/kg, 2,000 mg/kg and 0 1 mg/kg (prorated to benzo(a)pyrene with toxicity equivalent factors). (Attachment -8). I. In November of 1991, Hart Crowser (Chevron's consultant) installed a soil vapor extraction (SVE) system to remove the volatile organic compounds (VOCs) from the soils. The system included eleven dedicated extraction wells and five groundwater monitoring wells The SVE system was operated from November 1991 through December 1994. Because of the low VOC recovery the system was turned off in December 1994. During this period a total of approximately 195,000 pounds of VOCs were extracted and the thickness of product was reduced in some of the groundwater monitoring wells. (Attachment -9). J. In July 1991, Ecology conducted a site hazard assessment investigation As a part of this investigation groundwater, sediment and shellfish samples were collected. These samples were analyzed for TPH -G, TPH -D, BTEX, semi- volatile organic compounds (SVOCs) and total lead. Groundwater results showed: total TPH (5,660 µg/1), benzene (2,420 µg/1), toluene (4,390 µg/1) and nitrobenzene (152 µg/1). Results of sediment samples (all compounds) were below their practical quantitation limits (PQL). Since PQLs were higher than the Sediment Management Standards, it does not preclude the presence of these compounds in the sediments exceeding the marine Sediment Management Standards. In addition, total TPH (100 mg/kg — 412 mg/kg), xylene (78 gg/kg — 103 gg/kg) and lead (11.3 mg/kg — 53.3 mg/kg) were also detected in sediment samples. (Attachment -10). Agreed Order No. DE- 12TCPHQ -9509 Page 9 of 24 K. In May 1989, Chevron conducted soil investigation and Phase -I remediation (some product removal). Nine test pits were excavated and a total of eighteen (18) soil samples were collected for TPH -G, TPH -D and total hydrocarbon identification (HCID) analysis. Elevated levels of TPH -G (25,000 mg/kg) and TPH -D (5,800 mg/kg) were detected in soil samples. In addition, measurement of free phase hydrocarbon thickness revealed the presence of approximately 3 to 4 feet of free product at certain locations on the site. A total of 47 gallons of free product was removed during a period of one year. (Attachment -11). L. In November 1988, Chevron conducted a soil and groundwater investigation. As a part of this investigation, twelve (12) exploratory borings and seven (7) test pits were installed and a total of seventeen (17) soil samples were collected for TPH -G, TPH -D and BTEX analysis. Elevated levels of TPH -G (4,300 mg/kg), TPH -D (17,000 mg/kg), benzene (3.4 mg/kg), toluene (15 mg/kg), ethylbenzene (3.1 mg/kg) and xylenes (12.4 mg/kg) were detected exceeding their MTCA Method -A cleanup levels of respectively, 30 mg/kg, 2,000 mg/kg, 0 03 mg/kg, 7 mg/kg, 6 mg/kg and 9 mg/kg. (Attachment -12). Nine of the above - mentioned twelve borings were converted into groundwater monitoring wells and groundwater samples were collected for total petroleum hydrocarbon (TPH) and BTEX analysis. TPH, BTEX concentrations of 1,742 µg11, 6,100 , µg/1, 19,000 µg11, 2,900 µg/1 and 23,000 µg11 were detected respectively. These concentrations exceed MTCA Method -A cleanup levels of 800 µg/1 (TPH), 5 µg/1 (benzene), 1,000 µg/1 (toluene and xylenes) and 700 µg/l ( ethylbenzene) (Attachment - l 2). VI. ECOLOGY DETERMINATIONS A. The City is an 'owner or operator" as defined in RCW 70.105D.020(17), of a "facility" as defined in RCW 70 105D.020(5) because it is the current owner of the Site. B Based upon all factors known to Ecology, a "release" or "threatened release" of "hazardous substance(s)" as defined in RCW 70.105D 020(25) and RCW 70.105D.020(10), respectively, has occurred at the Site Agreed Order No DE- 12TCPHQ -9509 Page 10 of 24 C. Based upon credible evidence, Ecology issued a PLP status letter to the City dated October 25, 2006, pursuant to RCW 70.105D.040, - .020(21) and WAC 173- 340 -500. By letter dated October 27, 2006, the City voluntarily waived its rights to notice and comment and accepted Ecology's determination that the City is a PLP under RCW 70.105D 040. D. Pursuant to RCW 70.105D.030(1) and - .050(1), Ecology may require PLPs to investigate or conduct other remedial actions with respect to any release or threatened release of hazardous substances, whenever it believes such action to be in the public interest. Based on the foregoing facts, Ecology believes the remedial actions required by this Order are in the public interest. VII. WORK TO BE PERFORMED Based on the Findings of Fact and Ecology Determinations, it is hereby ordered that the City take the following remedial actions at the Site and that these actions be conducted in accordance with Chapter 173 -340 WAC unless otherwise specifically provided for herein: A. The City shall conduct the remedial actions fully described in Exhibit B to this Agreed Order. Generally, the City shall develop a draft final cleanup action plan (dFCAP) for the Site and, the City shall develop a draft and draft final long -term groundwater monitoring plan, a draft and draft final soil monitoring plan, a draft and draft final sampling health and safety plan, a draft and a draft final institutional controls plan, and a draft and draft final environmental covenant to be placed on the property deed. As part of the dFCAP, the City shall cant' out the following tasks. • Installing one or more new groundwater monitoring wells; • Collecting groundwater and soil samples to define the full nature and extent of remediation; B. The City shall perform actions required by this Order according to the schedule included in Exhibit B. C. Upon the approval of the draft cleanup action report, the City shall prepare a draft final CAP in accordance with WAC 173- 340 -380 that provides a proposed remedial action to Agreed Order No. DE- 12TCPHQ -9509 Page 11 of 24 address the contamination at the site. In addition to a general description of the proposed remedial action, the dFCAP shall describe the results of contaminated soils excavation, the chemical oxidation pilot scale study, the application of enhanced bioremediation technologies, and studies of natural attenuation of residual groundwater contamination. The dFCAP shall also include- cleanup levels from the RI/FS together with the rationale for their selection; a schedule for implementation; description of any institutional controls proposed; and summary of applicable local, state and federal laws pertinent to the proposed cleanup action It shall also contain a draft environmental covenant for the site. D If, at any time after the first exchange of comments on drafts, Ecology determines that insufficient progress is being made in the preparation of any of the deliverables required by Exhibit B, Ecology may complete and issue the final deliverable. VIII. TERMS AND CONDITIONS OF ORDER A. Public Notice RCW 70.105D.030(2)(a) requires that, at a minimum, this Order be subject to concurrent public notice. Ecology shall be responsible for providing such public notice and reserves the right to modify or withdraw any provisions of this Order should public comment disclose facts or considerations which indicate to Ecology that this Order is inadequate or improper in any respect. B. Remedial Action Costs The City shall pay to Ecology costs incurred by Ecology pursuant to this Order and consistent with WAC 173 - 340 - 550(2). These costs shall include work performed by Ecology or its contractors for, or on, the Site under Chapter 70.1051) RCW, including remedial actions and Order preparation, negotiation, oversight, and administration These costs shall include work performed both prior (retroactive to October 1, 2006) to and subsequent to the issuance of this Order. Ecology's costs shall include costs of direct activities and support costs of direct activities as defined in WAC 173- 340 - 550(2) Ecology has accumulated $92 832.51 in remedial action costs related to this facility as of December 31, 2011. The City has paid this amount Agreed Order No. DE- 12TCPHQ -9509 Page 12 of 24 following, submittal of itemized statements by Ecology to the City. For all costs subsequent to December 31, 2011, the City shall pay the required amount within thirty (30) days of receiving from Ecology an itemized statement of costs that includes a summary of costs incurred, an identification of involved staff, and the amount of time spent by involved staff members on the protect. A general statement of work performed will be provided upon request. Itemized statements shall be prepared quarterly. Pursuant to WAC 173- 340 - 550(4), failure to pay Ecology's costs within ninety (90) days of receipt of the itemized statement of costs will result in interest charges at the rate of twelve percent (12 %) per annum, compounded monthly In addition to other available relief, pursuant to RCW 19.16.500, Ecology may utilize a collection agency and/or, pursuant to RCW 70.105D.055, file a lien against real property subject to the remedial actions to recover unreimbursed remedial action costs.. C. Implementation of Remedial Action If Ecology determines that the City has failed without good cause to implement the remedial action, in whole or in part, Ecology may, after notice to the City, perform any or all portions of the remedial action that remain incomplete If Ecology performs all or portions of the remedial action because of the City's failure to comply with its obligations under this Order, the City shall reimburse Ecology for the costs of doing such work in accordance with Section VIII.B (Remedial Action Costs), provided that the City is not obligated under this, Section to reimburse Ecology for costs incurred for work inconsistent with or beyond the scope of this Order. Except where necessary to abate an emergency situation, the City shall not perform any remedial actions at the Site outside those remedial actions required by this Order, unless Ecology concurs, in writing, with such additional remedial actions D. Designated Project Coordinators The project coordinator for Ecology is: Christopher Maurer Toxics Cleanup Program PO Box 47600, Olympia, WA 98504 -7600 (360) 407 -7223 Agreed Order No. DE- 12TCPHQ -9509 Page 13 of 24 E -mail: cmau461@ecy.wa.gov The project coordinator for the City is Thomas Knuckey 3027 Olympus Drive Bremerton, Washington 98310 (360) 473 -2376 E -Mail - tomas knuckey @ci.bremerton.wa us Each project coordinator shall be responsible for overseeing the implementation of this Order. Ecology's project coordinator will be Ecology's designated representative for the Site. To the maximum extent possible, communications between Ecology and the City, and all documents, including reports, approvals, and other correspondence concerning the activities performed pursuant to the terms and conditions of this Order shall be directed through the project coordinators. The project coordinators may designate, in writing, working level staff contacts for all or portions of the implementation of the work to be performed required by this Order. Any party may change its respective project coordinator. Written notification shall be given to the other party at least ten (10) calendar days prior to the change. E. Performance All geologic and hydrogeologic work performed pursuant to this Order shall be under the supervision and direction of a geologist licensed in the State of Washington or under the direct supervision of an engineer registered in the State of Washington, except as otherwise provided for by Chapters 18.220 and 18.43 RCW. All engineering work performed pursuant to this Order shall be under the direct supervision of a professional engineer registered in the State of Washington, except as otherwise provided for by RCW 18 43.130. All construction work performed pursuant to this Order shall be under the direct supervision of a professional engineer or a qualified technician under the direct supervision of a professional engineer. The professional engineer must be registered in the State of Washington, except as otherwise provided for by RCW 18.43.130. Agreed Order No. DE- 12TCPHQ -9509 Page 14 of 24 Any documents submitted containing geologic, hydrologic or engineering work shall be under the seal of an appropnately licensed professional as required by Chapter 18.220 RCW or RCW 18.43 130. The City shall notify Ecology in writing of the identity of any engineer(s) and geologist(s), contractor(s) and subcontractor(s), and others to be used in carrying out the terms of this Order, in advance of their involvement at the Site. F. Access Ecology or any Ecology authorized representative shall have the full authority to enter and freely move about all property at the Site that the City either owns, controls, or has access rights to at all reasonable times for the purposes of, inter alia. inspecting records, operation logs, and contracts related to the work being performed pursuant to this Order; reviewing the City's progress in carrying out the terms of this Order; conducting such tests or collecting such samples as Ecology may deem necessary; using a camera, sound recording, or other documentary type equipment to record work done pursuant to this Order; and verifying the data submitted to Ecology by the City The City shall make all reasonable efforts to secure access rights for those properties within the Site not owned or controlled by the City where remedial activities or investigations will be performed pursuant to this Order. Ecology or any Ecology authorized representative shall give reasonable notice before entering any Site property owned or controlled by the City unless an emergency prevents such notice. All persons who access the Site pursuant to this Section shall comply with any applicable Health and Safety Plan(s). Ecology employees and their representatives shall not be required to sign any liability release or waiver as a condition of Site property access G. Sampling, Data Submittal, and Availability With respect to the implementation of this Order, the City shall make the results of all sampling, laboratory reports, and/or test results generated by it or on its behalf available to Ecology Pursuant to WAC 173- 340 - 840(5), all sampling data shall be submitted to Ecology in both printed and electronic formats in accordance with Section VII (Work to be Performed), Ecology's Toxics Cleanup Program Policy 840 (Data Submittal Requirements), and/or any Agreed Order No. DE- 12TCPHQ -9509 Page 15 of 24 subsequent procedures specified by Ecology for data submittal. Attached as Exhibit D is Ecology Policy 840, Data Submittal Requirements. If requested by Ecology, the City shall allow Ecology and/or its authorized representative to take split or duplicate samples of any samples collected by the City pursuant to implementation of this Order. The City shall notify Ecology seven (7) days in advance of any sample collection or work activity at the Site. Ecology shall, upon request, allow the City and/or its authorized representative to take split or duplicate samples of any samples collected by Ecology pursuant to the implementation of this Order, provided that doing so does not interfere with Ecology's sampling. Without limitation on Ecology's rights under Section VIII.F (Access), Ecology shall notify the City prior to any sample collection activity unless an emergency prevents such notice In accordance with WAC 173 - 340- 830(2)(a), all hazardous substance analyses shall be conducted by a laboratory accredited under Chapter 173 -50 WAC for the specific analyses to be conducted, unless otherwise approved by Ecology. H. Public Participation A Public Participation Plan is required for this Site. Ecology shall review any existing Public Participation Plan to determine its continued appropriateness and whether it requires amendment, or if no plan exists, Ecology shall develop a Public Participation Plan alone or in conjunction with the City. Ecology shall maintain the responsibility for public participation at the Site However, the City shall cooperate with Ecology, and shall: 1. If agreed to by Ecology, develop appropriate mailing list, prepare drafts of public notices and fact sheets at important stages of the remedial action, such as the submission of work plans, remedial investigation/feasibility study reports, cleanup action plans, and engineering design reports. As appropriate, Ecology will edit, finalize, and distribute such fact sheets and prepare and distribute public notices of Ecology's presentations and meetings. Agreed Order No. DE- 12TCPHQ -9509 Page 16 of 24 2. Notify Ecology's project coordinator prior to the preparation of all press releases and fact sheets, and before mayor meetings with the interested public and local governments Likewise, Ecology shall notify the City prior to the issuance of all press releases and fact sheets, and before major meetings with the interested public and local governments. For all press releases, fact sheets, meetings, and other outreach efforts by the City that do not receive prior Ecology approval, the City shall clearly indicate to its audience that the press release, fact sheet, meeting, or other outreach effort was not sponsored or endorsed by Ecology. 3. When requested by Ecology, participate in public presentations on the progress of the remedial action at the Site. Participation may be through attendance at public meetings to assist in answering questions or as a presenter 4. When requested by Ecology, arrange and/or continue information repositories to be located at the following Iocations. a. Breme Public Library 612 5` Street North Bremerton, Washington 98337 b. Washington Department of Ecology Headquarters Office 300 Desmond Drive Lacey, WA 98503 At a minimum, copies of all public notices, fact sheets, and documents relating to public comment periods shall be promptly placed in these repositories. A copy of all documents related to this site shall be maintained in the repository at Ecology's Headquarters Office in Lacey, Washington. I. Retention of Records During the pendency of this Order, and for ten (10) years from the date of completion of work performed pursuant to this Order, the City shall preserve all records, reports, documents, and underlying data in its possession relevant to the implementation of this Order and shall insert a similar record retention requirement into all contracts with project contractors and subcontractors. Upon request of Ecology, the City shall make all records available to Ecology and allow access for review within a reasonable time. Agreed Order No DE- 12TCPHQ -9509 Page 17 of 24 J. Resolution of Disputes 1. In the event a dispute arises as to an approval, disapproval, proposed change, or other decision or action by Ecology's project coordinator, or an itemized billing statement under Section VIII B (Remedial Action Costs), the Parties shall utilize the dispute resolution procedure set forth below. a. Upon receipt of Ecology's project coordinator's written decision or the itemized billing statement, the City has fourteen (14) days within which to notify Ecology's project coordinator in writing of its objection to the decision or itemized statement. b. The Parties' project coordinators shall then confer in an effort to resolve the dispute. If the project coordinators cannot resolve the dispute within fourteen (14) days, Ecology's project coordinator shall issue a written decision. C. The City may then request regional management review of the decision. This request shall be submitted in writing to the Toxics Cleanup Land & Aquatic Lands Cleanup Section Manager within seven (7) days of receipt of Ecology's project coordinator's written decision. d. The Section Manager shall conduct a review of the dispute and shall endeavor to issue a written decision regarding the dispute within thirty (30) days of the City's request for review The Section Manager's decision shall be Ecology's final decision on the disputed matter 2. The Parties agree to only utilize the dispute resolution process in good faith and agree to expedite, to the extent possible, the dispute resolution process whenever it is used 3 Implementation of these dispute resolution procedures shall not provide a basis for delay of any activities required in this Order, unless Ecology agrees in writing to a schedule extension. K. Extension of Schedule 1. An extension of schedule shall be granted only when a request for an extension is submitted in a timely fashion, generally at least thirty (30) days prior to expiration of the Agreed Order No. DE- 12TCPHQ -9509 Page 18 of 24 deadline for which the extension is requested, and good cause exists for granting the extension. All extensions shall be requested in writing The request shall specify - a. The deadline that is sought to be extended; b. The length of the extension sought; C. The reason(s) for the extension; and d. Any related deadline or schedule that would be affected if the extension were granted 2. The burden shall be on the City to demonstrate to the satisfaction of Ecology that the request for such extension has been submitted in a timely fashion and that good cause exists for granting the extension. Good cause may include, but may not be limited to a Circumstances beyond the reasonable control and despite the due diligence of the City including delays caused by unrelated third parties or Ecology, such as (but not limited to) delays by Ecology in reviewing, approving, or modifying documents submitted by the City; b. Acts of God, including fire, flood, blizzard, extreme temperatures, storm, or other unavoidable casualty, or C. Endangerment as described in Section VIII.M (Endangerment). However, neither increased costs of performance of the terms of this Order nor changed economic circumstances shall be considered circumstances beyond the reasonable control of the City. 3 Ecology shall act upon any written request for extension in a timely fashion Ecology shall give the City written notification of any extensions granted pursuant to this Order A requested extension shall not be effective until approved by Ecology. Unless the extension is a substantial change, it shall not be necessary to amend this Order pursuant to Section VIII L (Amendment of Order) when a schedule extension is granted. Agreed Order No. DE- 12TCPHQ -9509 Page 19 of 24 4. An extension shall only be granted for such period of time as Ecology determines is reasonable under the circumstances. Ecology may grant schedule extensions exceeding ninety (90) days only as a result of: a. Delays in the issuance of a necessary permit which was applied for in a timely manner; b. Other circumstances deemed exceptional or extraordinary by Ecology; or c Endangerment as described in Section VIII M (Endangerment). L. Amendment of Order The project coordinators may verbally agree to minor changes to the work to be performed without formally amending this Order. Minor changes will be documented in writing by Ecology within seven (7) days of verbal agreement Except as provided in Section VIII.N (Reservation of Rights), substantial changes to the work to be performed shall require formal amendment of this Order. This Order may only be formally amended by the written consent of both Ecology and the City The City shall submit a written request for amendment to Ecology for approval Ecology shall indicate its approval or disapproval in writing and in a timely manner after the written request for amendment is received. If the amendment to this Order represents a substantial change, Ecology will provide public notice and opportunity to comment. Reasons for the disapproval of a proposed amendment to this Order shall be stated in writing. If Ecology does not agree to a proposed amendment, the disagreement may be addressed through the dispute resolution procedures described in Section VIII.J (Resolution of Disputes) M. Endangerment In the event Ecology determines that any activity being performed at the Site is creating or has the potential to create a danger to human health or the environment on or surrounding the Site, Ecology may direct the City to cease such activities for such period of time as it deems necessary to abate the danger. The City shall immediately comply with such direction. Agreed Order No. DE- 12TCPHQ -9509 Page 20 of 24 In the event the City determines that any activity being performed at the Site is creating or has the potential to create a danger to human health or the environment, the City may cease such activities. The City shall notify Ecology's project coordinator as soon as possible, but no later than twenty -four (24) hours after making such determination or ceasing such activities. Upon Ecology's direction the City shall provide Ecology with documentation of the basis for the determination or cessation of such activities If Ecology disagrees with the City's cessation of activities, it may direct the City to resume such activities. If Ecology concurs with or orders a work stoppage pursuant to Section VIII.M (Endangerment), the City's obligations with respect to the ceased activities shall be suspended until Ecology determines the danger is abated, and the time for performance of such activities, as well as the time for any other work dependent upon such activities, shall be extended in accordance with Section VIII.K (Extension of Schedule) for such period of time as Ecology determines is reasonable under the circumstances. Nothing in this Order shall limit the authority of Ecology, its employees, agents, or contractors to take or require appropriate action in the event of an emergency N. Reservation of Rights This Order is not a settlement under Chapter 70.105D RCW. Ecology's signature on this Order in no way constitutes a covenant not to sue or a compromise of any of Ecology's rights or authority. Ecology will not, however, bring an action against the City to recover remedial action costs paid to and received by Ecology under this Order. In addition, Ecology will not take additional enforcement actions against the City regarding remedial actions required by this Order, provided the City complies with this Order. Ecology nevertheless reserves its rights under Chapter 70.105D RCW, including the right to require additional or different remedial actions at the Site should it deem such actions necessary to protect human health and the environment, and to issue orders requiring such remedial actions. Ecology also reserves all rights regarding the injury to, destruction of, or loss Agreed Order No. DE- 12TCPHQ -9509 Page 21 of 24 of natural resources resulting from the release or threatened release of hazardous substances at the Site. O. Transfer of Interest in Property No voluntary conveyance or relinquishment of title, easement, leasehold, or other interest in any portion of the Site shall be consummated by the City without provision for continued implementation of all requirements of this Order and implementation of any remedial actions found to be necessary as a result of this Order. Prior to the City's transfer of any interest in all or any portion of the Site, and during the effective period of this Order, the City shall provide a copy of this Order to any prospective purchaser, lessee, transferee, assignee, or other successor in said interest; and, at least thirty (30) days prior to any transfer, the City shall notify Ecology of said transfer. Upon transfer of any interest, the City shall restrict uses and activities to those consistent with this Order and notify all transferees of the restrictions on the use of the property. P. Compliance with Applicable Laws 1. All actions carved out by the City pursuant to this Order shall be done in accordance with all applicable federal, state, and local requirements, including requirements to obtain necessary permits, except as provided in RCW 70.105D.090. The permits or specific federal, state or local requirements that the agency has determined are applicable and that are known at the time of entry of this Order have been identified in Exhibit C. 2 Pursuant to RCW 70.105D.090(1), the City is exempt from the procedural requirements of Chapters 70.94, 70.95, 70.105, 77.55, 90.48, and 90.58 RCW and of any laws requiring or authorizing local government permits or approvals However, the City shall comply with the substantive requirements of such permits or approvals. The exempt permits or approvals and the applicable substantive requirements of those permits or approvals, as they are known at the time of entry of this Order, have been identified in Exhibit C. The City has a continuing obligation to determine whether additional permits or approvals addressed in RCW 70.105D.090(1) would otherwise be required for the remedial Agreed Order No. DE- 12TCPHQ -9509 Page 22 of 24 action under this Order In the event either Ecology or the City determines that additional permits or approvals addressed in RCW 70.105D.090(1) would otherwise be required for the remedial action under this Order, it shall promptly notify the other party of its determination. Ecology shall determine whether Ecology or the City shall be responsible to contact the appropriate state and/or local agencies If Ecology so requires, the City shall promptly consult with the appropriate state and/or local agencies and provide Ecology with written documentation from those agencies of the substantive requirements those agencies believe are applicable to the remedial action Ecology shall make the final determination on the additional substantive requirements that must be met by the City and on how the City must meet those requirements. Ecology shall inform the City in writing of these requirements. Once established by Ecology, the additional requirements shall be enforceable requirements of this Order. The City shall not begin or continue the remedial action potentially subject to the additional requirements until Ecology makes its final determination. 3 Pursuant to RCW 70.105D.090(2), in the event Ecology determines that the exemption from complying with the procedural requirements of the laws referenced in RCW 70.105D.090(1) would result in the loss of approval from a federal agency that is necessary for the State to administer any federal law, the exemption shall not apply and the City shall comply with both the procedural and substantive requirements of the laws referenced in RCW 70 105D.090(1), including any requirements to obtain permits Q. Land Use Restrictions The City shall record a restrictive covenant with the offices of the Island County Auditor within ten (10) days of the completion of the remedial action. The Restrictive Covenant shall restrict future uses of the site. The City shall provide Ecology with a copy of the recorded Restrictive Covenant within thirty (30) days of the recording date. R. Periodic Review As remedial action, including groundwater monitoring, continues at the Site, the parties agree to review the progress of remedial action at the Site, and to review the data accumulated as Agreed Order No. DE- 12TCPHQ -9509 Page 23 of 24 a result of monitoring the Site as often as is necessary and appropriate under the circumstances. At least every five (5) years after initiation of cleanup action at the Site the Parties shall meet to discuss the status of the Site and the need, if any, for further remedial action at the Site. At least ninety (90) days prior to each periodic review, the City shall submit a report to Ecology that documents whether human health and the environment are being protected based on the factors set forth in WAC 173 - 340 - 420(4). Ecology reserves the right to require further remedial action at the Site under appropriate circumstances. This provision shall remain in effect for the duration of this Order. S. Indemnification The City agrees to indemnify and save and hold the State of Washington, its employees, and agents harmless from any and all claims or causes of action for death or injuries to persons or for loss or damage to property to the extent ansing from or on account of acts or omissions of the City, its officers, employees, agents, or contractors in entering into and implementing this Order. However, the City shall not indemnify the State of Washington nor save nor hold its employees and agents harmless from any claims or causes of action to the extent ansing out of the negligent acts or omissions of the State of Washington, or the employees or agents of the State, in entering into or implementing this Order IX. SATISFACTION OF ORDER The provisions of this Order shall be deemed satisfied upon the City's receipt of written notification from Ecology that the City has completed the remedial activity required by this Order, as amended by any modifications, and that the City has complied with all other provisions of this Agreed Order X. ENFORCEMENT Pursuant to RCW 70.105D.050, this Order may be enforced as follows: A. The Attorney General may bring an action to enforce this Order in a state or federal court. Agreed Order No. DE- 12TCPHQ -9509 Page 24 of 24 B. The Attorney General may seek, by filing an action, if necessary, to recover amounts spent by Ecology for investigative and remedial actions and orders related to the Site. C In the event the City refuses, without sufficient cause, to comply with any term of this Order, the City will be liable for: a. Up to three (3) times the amount of any costs incurred by the State of Washington as a result of its refusal to comply, and b. Civil penalties of up to twenty -five thousand dollars ($25,000) per day for each day it refuses to comply. D. This Order is not appealable to the Washington Pollution Control Hearings Board This Order may be reviewed only as provided under RCW 70 105D 060 Effective date of this Order. CITY OF BREMERTON STATE OF WASHINGTON, DEPARTMENT OF ECOLOGY Patty Lent Tim L. Nord Mayor Section Manager The City of Bremerton Toxics Cleanup Program Bremerton, Washington Land & Aquatic Lands Cleanup Section Telephone. (360) 473 -5266 Telephone: (360) 407 -7226 O,'�. mill , r A NR N Evils •r ti� C-2 C-I PIER -------- -- - ----- - --- -- -- ----- - � ---------- ---- S C-8 C-12 ------ --- ---- ---- -- -- C-8-S BIOASSAY -- -- ---- --------- SAMPLE ------ - --- -- 9 - METAL -- --- C- SHEETPILES wool -- --- ----- MW 22 -- ---- BULKHEAD C 10-S 0 ( Uwe c-7 / A A -- -- -- - - ---- It FORMER C-7-S/ I ,, - MW5 F;.ATFORh2" ------- SEWER BURIED WOODEN It M TO I. v"' BULKHEAD 1 -12 @ MW4 z STATION I LOWER YAR 1/ MW 23 ,C-3 @ MW 2 8 U10 TP-8 *0 C-5 TF 14 rt W12 HTP-3 XER YARD UPI A L TP-13 19 , 0 TP 7 R ' TP-2 11 MW 16 FORMER LOADING MW Mw 15 RACKS Tp.� — MW 24- TP-S @ mw MW 10 TFdRMER1 (O L —it— J 'GAPAGE %W 117 N`Y , + +' TP- MW 11 TP-1 5` `TP-1 C) OOTBRIDGE HIGHLAND AVE It NOTES PLUMBER UN CONTOUR DATUM NAVD 98 LOCATIONS OF FORMER TANKS PIPING AND BUILDINGS FROM HART CROWSER DRAWING DATED 11159 P.Metrix LEGEND TEST PIT GEO, ENGINEERS 1988 -/7777777r/7 EXISTING BUILDING C-6 SURFACE SEDIMENT SAMPLE TEST PIT HART CROWSER I gag ---------- 0— CHAIN LINK FENCE C.6-S SEDIMENT SAMPLE Figure 2 0 0 N • DESTROYED MONITORING AT 2 FT DEPTH rt oRtNG WELL — — — DRAINAGE DITCH Fortner Chevron Property DCAP ® SUSTIDAL SEDIMENT SAMPLE INTERTIDAL SEDIMENT SAMPLE 0 FORMER ABOVEBROUND STORAGE TANK S Historical Site Features @ EXISTING MONITORING WELL EXISTING CONCRETE PAD FORMER PIPINGIBUILOINGI LOADING RACK — GENERAL GROUNDWATER FLOW DIRECTION 40 Mw•z2 ! (20'OFFSEn 30 MW-18 / EXISTING GROUND SURFACE M 9 / CONCEPTUA GROUND TABLE FLUCTUATION BETWEEN MHHW AND MLLW l" MY" TF-12 20 —-I- / Mvr 22 VERY DENSE s0.Tr sArm MHHw 922 t } — — 7 (TILL AND ourvws CONCRETE / SILTY SAND v I I I / VERY DENSE SILTY SAND RUBBLE (FILL) I I (� (TILL AND OUTWASH) MLLW.MI SIL SAND I I DATUM ELEV a 0 C a (FILL) �G _ NAVD SS — - 4 �, I 1 VERY HARD SILT AND INTERBEDDED SILTY SANDS (OUTWASH) •10 WDODEN BULKHEAD 0+00 80+00 160+00 240+00 320+00 400+00 480+00 SECTION n HORIZ 1"=40' VERT 1 " =10' per81D9ltr11[ an Iraav ntc rirmao�n�worrm NOTES LEGEND Figure 3 MEAN HIGHER HIGH WATER (MHHW) AND MEAN LOWER LOW WATER (MLLWJ) ELEVATIONS GROUNDWATER TABLE ELEVATION Former Chevron Property OBTAINED FROM NOM RECORDS FOR TIDAL STATION BREMERTON WA, ID NO 9445955 MEASURED 10124M Section A SEDIMENT SAMPLES LEGEND _ •— EXISTING CHAIN LINK FENCE 1 - 1 E=TINO MONNOR010 WELL �� f ��. -- ~ -- -"'�•� d t10N Wi1N6 MFACONFlRIMiM)NSOIL SAMPLE LOCATION iGErm a \ Q PYEMPROSE LOCATION SOIL EXCAVATION AREA / SOLLPNMW AVER 5 -••- -� _ 1 - _-- "_---- •- " „ �^-�. 1 � li �+T' WELL DESTROYED WRING INTERIM ACTION EUBMTED LS FLUME EXCEE �Y�EClPN6 IEVFiO� NWISRQ oUNRERLr MONITORING WELL LOCATION p t7R \ R INDICATES REPLACEMENT VTELL INSTALLED an h - FOR PERFORMANCE MONITORING "r mnwo —1.— GRgNNOVNTER ELEVATION Lm O El ---- siw� GROYIGRMTERFLOWDIRECTNDN AR E R 3GVAllGf1 ' "T.YIAOEIt1ND_ % ARE11S 8 � Tt ( - T� =�,�- ` �- T — _ _ _ — — _ — 1E11 GRWIDYWTER ELEVATION AT TIME ` I I f i I /•'LO ••- —_� 4' -.-J OF SAMPLING P � AREA YA EOL OIC/tVAT10N -- PLYYE EACEEOIN6 MTGAQEANYI /EVELA / I IIIJJJ � RBI . �/ AREA IA �AL� ^-�����.' 1fYt 50On10lNO 0WREMATS FOR SENLENE 1 L4 1h.1 O LI \ I F ('-_ W9OLINER)"ELRLIa 01L RESM.TS N W1 EVRR RIYPETAitlM ( I 1I L -- f-Qi � �' ` - _ �•� •• a NEWIRM NSTALIEL FOR PERFORMANCE )gi �N �T 4 l ^�� -'` J r MONRORINGNYMCX 7011 1 - tom a MW 2IR I d C_Y n 7Y ^ E NO NOT oETTCo EIT a I PROPOWDREWMONITORINOWELLWOWR r _ O le - - - GENERAL MOM, —”' "' • e , l 1 { LL B I 1 t eGXTauRDATMMNAwr 'l rJ _ 1 EOG ERLJAm=m f CLEANUP LEVELS MWOR 7- comic aA7 �- .may". ---' '��.� \ \� /1 _� _ afm TmEmim L I ®MW } W O4417cm N002MG37JW C'� F HKULAND AVE PLAN Ag - o m w REMMM P r r Rm m CITY OP BREMERTON n aoso OOE EP m Op > � a wlos � FORMER CHEVRON PROPERTY DCAP rom q M•aT x . oT 1raE .ma m. lM601 6 Divan" SAMPUNO RESULTS E 7i Non E+ae vmr a n w o QaGI LIO m Om® Ee SEPTEMBER 2011 4 8 GGE Rml r GG[ a► GOL ! Former Chevron Property Cleanup Action Work Plan Prepared for City of Bremerton 3037 Olympus Drive Bremerton, WA 98310 Prepared by Parametrix 4660 Kitsap Way, Suite A Bremerton, WA 98312.2357 T 360 377 0014 F 360 479 5961 www.parametrix com April 2012 233- 1896 -098 CITATION Parametnx 2012. Former Chevron Property Cleanup Action Work Plan Prepared by Parametrix, Bremerton, Washington. April 2012 Fornier Chevron Property Cleanup Action Work Plan City of Bmmenon CERTIFICATION The technical material and data contained in this document were prepared under the supervision and direction of the undersigned. Prepared by Lara Linde, LG Checked by David Dinkuhn, P E April 2012 233 -1896 -098 Former Chevron Property Cleanup Action {York Plan City of Bn:menon TABLE OF CONTENTS 1. INTRODUCTION .................................................................... ............................1 -1 1 1 PURPOSE . ... .. ....... ....... .. .. . ... . .1 -1 2. SUMMARY OF SITE CONDITIONS ...................................... ............................2 -1 21 SITE DESCRIPTION AND HISTORY ............ ... ... .......... 2 -1 2.2 SUMMARY OF ENVIRONMENTAL CONDITIONS ..... ....... ... .2 -1 2 2 1 Existing Soil Conditions ..... ............................ ......... 2 -1 2 2 2 Existing Groundwater Conditions .. 2 -1 3. CLEANUP REQUIREMENTS .................................................... :...................... 3 -1 3 1 INDICATOR HAZARDOUS SUBSTANCES . . .. .3 -1 3 2 CLEANUP LEVELS ' 4. SELECTED CLEANUP ACTION SCOPE OF WORK ........... ............................4 - 1 41 LONG -TERM GROUNDWATER MONITORING PLAN 4 -1 4 1.1 Summary of Plan./ ...... .. .. ...... 4 -2 4 2 SOIL MONITORING PLAN ....... ... ... 4-2 4.3 INSTITUTIONAL CONTROLS PLAN .................. ...4 -2 � F 4.3.1 Restrictive Covenant ... ..... .. ....4 -3 44 SCHEDULE ........................... . . ................. . ...4 -3 r 6. REFERENCES .................... .:......... :................................................................... 6 -1 LIST-OF-FIGURES 1 Project Vicinity, 2 1963 Aerial Photograph 3 Circa 2005'Aenal Photograph 4 Historical Site Features 5 RI/FS Subsurface Soil Sampling Locations 6 Interim Action Soil Mixing Area and Confirmation Sample Results 7 Well Location Plan and 6 -Month Post Treatment Soil Result 8 RI /FS Groundwater Sampling Locations 9 Groundwater Contours September 2011 April 2012 233- 1896 -098 I Fontter Chevron Property Cleanup Action {York Plan City of Bremenon TABLE OF CONTENTS (CONTINUED) LIST OF TABLES 1 Groundwater Results Summary, RI I st through 4th Monitoring Events (February, May, and August 2010, and April and September 2011) 2 Cleanup Levels 3 Proposed Initial Groundwater Sampling Program 4 Proposed Schedule �� April 2012 233 -1896 -098 Former Grevron Property Cleanup Action lVork Plan City of Bremerton KEY TERMS AND ABBREVIATIONS ASTs aboveground storage tanks BTEX benzene, toluene, ethylbenzene, and total xylenes CAP Cleanup Action Plan City City of Bremerton COCs Contaminants of concern DCAP Draft Cleanup Action Plan t Ecology Washington State Department ofEcology HASP Health and Safety Plan IA Interim Action ICP Institutional Control Z Ph LTGMP Long -Term Ground ter Monitoring Plan mgtkg milligrams per`kilograp , MTCA Model Toxics Control A'`ct ORC oxygen release compound PAHs PoIycyclidgacomatic hydrocarbons RI/FS Remedial Invdstigatiq; / Feasibdity Study Site +- , Former Chevron Property site SMP r ° SoilMonitonngPlan ug/L Micrograms per liter WAC Washington Administrative Code T 4 f y ! f f April 2012 233 -1896 -098 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 154 ■■ rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr��■ SUBJECT: Study Session Date November 14, 2012 Ordinance No 5199 to repeal Ch 2 34 of COUNCIL MEETING Date December 5, 2012 the Bremerton Municipal Code (BMC) Department Parks and Rec regarding the Gold Mountain Complex Board Presenter Wyn Birkenthal of Directors Phone 473 -5752 SUMMARY: The advent of the Council's Public Safety and Parks Committee and the change to consolidated management of the Gold Mountain Golf Complex no longer require the separate committee known as the Gold Mountain Board of Directors ATTACHMENTS: Ordinance No 5199 FISCAL IMPACTS (Include Budgeted Amount) Time savings from Parks, Public Works, Finance and Golf course contracted management staff STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No 5199 repealing chapter 2 34 of the BMC related to the Gold Mountain Golf Complex Board of Directors COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 ORDINANCE NO. 5 AN ORDINANCE of the City Council of the City of Bremerton, Washington, repealing Chapter 2 34 of the Bremerton Municipal Code entitled "Gold Mountain Golf Complex Board of Directors " WHEREAS, the current provisions of Chapter 2 34 of the Bremerton Municipal Code relating to the Gold Mountain Golf Complex Board of Directors are no longer required due to the upcoming change in management of the golf course, and WHEREAS, the Public Safety & Parks Committee is an appropriate forum for reviewing the operations of the golf course, and WHEREAS, the City Council desires to repeal in its entirety Chapter 2 34 of the Bremerton Municipal Code relating to the Gold Mountain Golf Complex Board of Directors, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION]. Chapter 2 34 of the Bremerton Municipal Code entitled "Gold Mountain Golf Complex Board of Directors" is hereby repealed in its entirety Chapter- 2.34 GOLID MOUNTAIN GOLF COMPLEX BOARD OF DIRECTO 2 2A 010 T. STAB 7SHEI l There i es t a bl is hed a gold Mountai G Comple., Beard o f D ire .t h a fte,. re to as " B eaf , n whieh shall aet -as - isir-aa v- rsvry body to Dirvet Re.. eat..... Mayor- C l�,.,,nei e e 2.34 -.020 MEMBE (a) The Board shall eensist of ten (10) members vmh six (6) veting members and fe ( 4) e y. e ff e ..t members as f e llows (1 ) T (2) C,,,, „,.,1 m mb a b th r,..,.,,..1 Pres (2) The Pireeter- of Parks and Reefeaatiefl, (2) Th P iree t er- o f 17„bhe Works and Utilities r� , (5) The City Forestry Manager-, (6) The Golf Ge tmt A dm ( e ff e .. eting) (7) The two (7) ,golf professionals (ov o ff cie n on voting) ; and (8) The Greens Superintendent (e3i effiete, nerweting)- 1 Gold Mountain Golf Complex Board of Directors - Repealed (b) The Board membeFs shall minain seated until resignation er- until rwaeved by4he C C . «...1 Members of th D,... «.l s nt th ..lens..«° of th e G " r 1 ,l May be r-eineved by the City Ceunw! a4 any time The po LAJJ1511V4 LLl[Li th e number nenZbCitTVe'Z'rti[Qlij .�Cj'je �Q member-ship as set feAh herein may be reassigned and meenstituted by the City Counet! a4 any 2.34.030 SALARIES AND PERSONAL EXPENSES-. The fnefaber-s ef the Bear-d shall r-eeeive ne salanes or- ether- remuneratien for- their- ser-viees ifl. sueh eapaet�y, but shall be entitled to retfabur-sement of expenses ineuffed by them in the 2T 040 GREETINGS The -Beafd l- establish -a regular- - meeting day and - is BeaFd m eetings The Dir-eeter- of Par-ks and Reer-ea4iea, or- his eF her- designee, shall sen as Chair- ef the Beafd A majenty ef the full member-ship shall eenstiMe a quemm fer- eendueting business 4 iny aetten to be taken b5 the Beafd shall require the eeneuffenee of a simple majefiPf-of dhe. ffieffih-i.arq nf±" 2.34.050 DUTIES AND RESPONSIBILITIES. ) ( T- set a d minis t«nt..,e „„ k an d «..les f the « the „ «nt a ftl, G M oun t ain Gelf LLT 1 (v) T , and (e) T-e submit fepeAs to the -C- " - C-euneil as requested by the ti eg all aetivittes of the Beafd X4. 60 RULES AND PROCEDURES. SECTION2. Severabdq If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain In full force and effect SECTION 3. Effective Date This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law PASSED by the City Council the day of , 2012 JIM McDONALD, Council President 2 Gold Mountain Golf Complex Board of Directors - Repealed Approved this day of , 2012 PATTY LENT, Mayor ATTEST APPROVED AS TO FORM SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney PUBLISHED the day of 5 2012 EFFECTIVE the day of 9 2012 ORDINANCE NO R \ Legal\Legal \Ordinances\Parks\BMC 2 32 Gold Mountain Board of Directors- repealed doc 3 Gold Mountain Golf Complex Board of Directors - Repealed AGENDA BILL CITY OF BREMERTON 1514 CITY COUNCIL ■0 e0 0 0 0 0 0 0EM0 000 0 ■ 0 0 0 0 0 0 ■0 ■0 ■0 ■0 0 0 ■■■■■0 0 0 0 ■■0 0 0 0 0 0 0 ■■■ 0 0 ■0 0 ■ ■ ■ ■■■■■■■■■■■■■ SUBJECT Adopt Kitsap Regional Study Session Date 11/14/2012 Coordinating Council Interlocal Agreement COUNCIL MEETING Date 12/05/2012 2012 Amendments Department KRCC Presenter _ Mary McClure Phone SUMMARY This is a housekeeping item The Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement from 2001 has a provision the agreement will be reviewed by legal counsel every 10 years KRCC has complied with this provision and proposes revisions to the Interlocal Agreement through a 2012 Amendment ATTACHMENTS 2012 KRCC proposed revisions to the ILA FISCAL IMPACTS (Include Budgeted Amount) None j STUDY SESSION AGENDA ❑ No Discussion 0 Full Presentation STUDY SESSION ACTION 0 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to adopt the proposed amendments to the Kitsap Regional Coordinating Council Interlocal Agreement and authorize the Mayor to finalize and execute the amendment with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 �t1ES } ';_ Kitsap Regional Coordinating Council y KITSAP REGIONAL COORDINATING COUNCIL �p , �� INTERLOCAL AGREEMENT THIS AGREEMENT is made and entered into by and between the undersigned parties pursuant to provisions of the Interlocal Cooperation Act of 1967, Chapter 39 34 RCW WHEREAS, the undersigned members recognize the need and desirability to participate in a forum for intergovernmental coordination, cooperation, and consultation among member agencies in order to bring about a continuous and comprehensive regional planning process and efficient service delivery; and WHEREAS, the undersigned members desire jointly to undertake continuous, cooperative study and planning of regional and governmental issues of mutual interest, including but not limited to development, land use, housing, capital facilities, service, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation, transportation planning, and economic development, and WHEREAS, it is the belief of the undersigned members that regional deliberations, planning, and review can best be achieved with the creation of a separate legal entity whose function and activities are subject to policy direction from the undersigned member agencies according to the provisions of this Agreement, and WHEREAS, the State Growth Management Act (GMA) requires local jurisdictions to coordinate and ensure consistency when developing comprehensive land use plans and the undersigned members desire to establish the Kitsap Regional Coordinating Council as a separate legal entity to facilitate coordination and consistency of comprehensive land use plans as required by the GMA; and WHEREAS, the undersigned members desire to use the Kitsap Regional Coordinating Council for developing County-wide Planning Policies (CPPs) under the GMA as a framework to guide Kitsap County and cities situated within the County in developing their comprehensive land use plans THEREFORE, in consideration of mutual promises and covenants herem it is hereby agreed I. NAME This Agreement establishes the KITSAP REGIONAL COORDINATING COUNCIL ("Council'), a separate legal entity since 2001 U. DURATION The Agreement shall remain in force and effect perpetually or until terminated by majority vote of the member agencies 1 2012 Amendments III. DEFINITIONS For the purpose of this Interlocal Agreement, the following terms have the meaning prescribed to them in this section unless the context of their use dictates otherwise. A. "Member agency" means a voting and dues paying municipal or other government entity located within Kitsap County which is a party to this Agreement. B "State" means the State of Washington. C "Region" means the territory physically lying within the boundaries of Kitsap County D "Kasap Regional Coordinating Council' or "Council' means the separate legal entity established by this Agreement to represent member agencies to carry out those powers and managerial and administrative responsibilities delegated pursuant to the provisions of this Agreement E "Majority vote" means more than one -half of the votes cast when a quorum is present and must include a majority of votes from County commissioners and a majority of votes from the representatives of at least two separate cities F "Executive Board" shall mean the representatives of member agencies of the Kitsap Regional Coordinating Council identified in Article IV B of this Agreement G "Cost Allocation" means annual dues (the annual allocation among Member agencies of the cost of Council operations determined by the Executive Board for the purposes of calculating members' obligations to contribute to the funding of Council operations for the year, and for the purposes of calculating obligations and distributions in the event of withdrawal or termination) H "Ex Officio Member" means a non - voting, non -dues paying member of the Council I "Two - thirds majority vote" means a majority vote and also requires a majority of votes from County commissioners and a majority of votes from the representatives from at least two separate cities J "Associate Member" means a member of the Council which is not a party to this Agreement and who enters into a separate agreement with the Council that establishes the Associate Member's level of participation in Council activities aeeam the work ..la developed by th E + B ,l 2 2012 Amendments IV. MEMBERSHIP AND REPRESENTATION A Membership Membership (except for Associate Members and Ex Officio Members) is established by execution of this Agreement and payment of any required cost allocation as established by the Executive Board. B. Executive Board The Executive Board is comprised of the following representatives of member agencies 1. County Government three (3) members of the Kitsap County Board of Commissioners; 2 City Governments a The Mayor of each city having a population of 10,000 persons or less, b The Mayor and one (1) member of the City Council of each city having a population between 10,001 persons and 30,000 persons, c The Mayor and two (2) members of the City Council of each city having a population greater than 30,000 persons; d A ctty with a Council/Manager form of government may select one (1) member of the City Council instead of a Mayor The number of additional City Council members representing the city shall be as described to 2(a -c) above 3 Port of Bremerton one (1) representative consisting of a Port Commissioner 4 City Council, and Port of Bremerton representatives may be selected by whatever means established by each specific member agency for a two (2) year term C The determination of the population of cities will be the most recent annual population estimate of cities and towns prepared by the Washington State Office of Financial Management D A municipal or government entity or a federally recognized Indian Tribe that desires to become a member of the Council must obtain permission to do so by majority vote of the Executive Board The required permission applies to any entity that wishes to become a Member or Ex Officio Member A municipal or government entity or a federally recognized Indian tribe that wishes to become an Associate Member must obtain permission to do so by a majority vote of the Executive Board, and must present a draft agreement for the Executive Board's consideration, establishing the proposed terms, duties, powers and privileges for Associate Member status 3 2012 Amendments V. POWER, AUTHORITY, AND PURPOSE This Agreement does not confer additional substantive powers or authorities on member agencies The powers and authorities conferred herein are limited to the powers that each member agency is authorized by law to perform. The Council has the following power, authority, and purpose. A Provide a regional forum for regional deliberations and cooperative decision - making by the region's elected officials in order to bring about a continuous and comprehensive planning process, and foster cooperation and mediate differences among governments throughout the region B Consistent with the GMA, coordinate and ensure consistency when developing comprehensive land use plans. C. Consistent with the GNU, develop CPPs to be used as a framework to guide the County and the Cities in developing their comprehensive land use plans, D Coordinate actions to provide for the distribution of state and federal grant funds, including but not limited to federal transportation funding, community development block grants, and low income housing grants E Undertake continuous, cooperative study and planning of regional and governmental problems of mutual interest, including but not limited to development, land use, housing, capital facilities, services, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation and transportation planning F Coordinate actions to provide for a sustainable economy and environment for the region G Carry out such other planning and coordinating activities authorized by majority vote of the Council including participation in other forums and organizations H Establish Bylaws, to be amended from time to time, that govern the procedures of the Council The Bylaws, as may be amended, are incorporated into this Agreement by this reference as if fully set forth herein I 3 Contract for administrative services and € itef enter into other agreements as deemed appropriate and/or necessary to implement this Agreement. J K Purchase, receive, lease, take by gift, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of the Council 4 2012 Amendments K-L Sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of its property and assets L M Sue and be sued, complain and defend, in all courts of competent jurisdiction in the Council's name M N- To engage in any other activity necessary to further the Council goals and purposes to the extent authorized by chapter 39 34 RCW N O- Apply for such federal, state, or private funding of any nature as may become available to assist the organization in carrying out its purposes and functions O N Identify and examine issues r-elatiag-to such as governance, growth policies, development standards, service provision, revenue -cost sharing and municipal annexations in urban growth areas. P O- Strive to represent the consensus of views on growth management and planning issues among member agencies The Council makes recommendations on behalf of those jurisdictions to multi -county regional agencies and State government on behalf of member agencies, on proposed changes to multi -county regional plans, state plans and laws Q P Represent the views or position of member agencies within the County on issues of consistency or the resolution of conflicts related to the multi -county regional growth strategy and transportation plan R Q Make appointments to committees and boards of multi -county regional organizations (e g. Puget Sound Regional Council, Peninsula Regional Transportation Planning Organization) where appointments are requested to represent more than one member agency of the Council Members appointed to such committees and boards shall represent the consensus of the views of the Council. If consensus is not reached on a particular issue, the members appointed to such committees and boards shall represent the majority and minority views of the Council, in order to accurately portray the status of discussions on that issue T E m pl oy pe adopt peFs p ..ems terminate personnel a nd all othe S U Review the this interloe-al Interlocal agreei Agreement no fewer than every 10 years with the assistance of legal counsel VI. FINANCING A. Cost Allocation All members shall pay the annual cost allocation as described in the Bylaws. If payment by a member is not paid timely after notice of the cost allocation is received, the member is subject to having its membership status revoked by majority vote of the Executive Board 5 2012 Amendments B Local Government Accounting All services and transfers of property to the Kitsap Regional Coordinating Council shall be paid and accounted for in accordance with RCW 43 09.210 VII. FISCAL YEAR AND BUDGET A The Fiscal Year The fiscal year shall coincide with the calendar year B Adoption of Budget By September of each year the Executive Board shall adopt a draft annual work program, budget, and cost allocation for the ensuing fiscal year that identifies anticipated activities, goals, revenues, and expenditures for completing the work program. The final work program, budget, and cost allocation for the ensuing year shall be adopted by the Executive Board no later than November of each year AfteF the r owned has approved the final budget it is for-warded to the County for- inelusten as a distmeat ageney fund within the Kitsap County Budget No increase or decrease to the final budget shall occur without the approval of the Executive Board. C Notice of Budget On or before September 30, the Executive Board shall provide written notice of the ensuing year's draft budget, work plan, and cost allocation to the designated representative(s) of each member agency On or before November 30, the Executive Board shall provide written notice of the final budget, work plan, and cost allocation adopted for the ensuing fiscal year to the designated representative(s) of each member agency D Accounting Budgeting, and Reporting The Council shall be subject to the Budgeting Accounting & Reporting System (BARS) applicable to Category l local governments E Fiscal Agent Kitsap- Cotmt} shall be the fiseagen for- theCe fte County approved by the Eywoutive Beafd, the Exeeutive Board shall for-ward the final budget to the d istinet agen fund within the Kitsap County Budget knevva as the The Council may retain a fiscal agent The fiscal agent may be a member agency who shall serve and be subject to removal pursuant to the teens and conditions as established by agreement between the fiscal agent and the Council F Contracting All contracts made by or on behalf of the Council shall be in accordance with state law, including, but not limited to Chapter 39 04 RCW, and Chapter 42 23 RCW, and Chapter 42 24 RCW VIII. WITHDRAWAL FROM AGREEMENT Any member agency has the right to withdraw from this Interlocal Agreement by giving the Executive Board six (6) months prior written notice Unless otherwise provided by future agreement, any member agency that withdraws shall remain responsible for its financial and other obligations with regard to Council activities until the effective date of withdrawal and with regard to agreements to which the Council is a party and which exist at the time of such notice of withdrawal. Withdrawal by one member agency to this Interlocal Agreement shall not terminate the Agreement as to any other remaining member agencies Except as provided in Article IX of this Agreement, any member agency that withdraws from this Agreement forfeits any rights it 6 2012 Amendments may have to the Council's assets, provided, however, such forfeiture shall not take effect if the Council dissolves within one (1) year of the date of the withdrawal notice. IX. DISPOSAL OF ASSETS Upon dissolution of the Council, any Council assets, after payment of all liabilities, costs, expenses, and charges validly incurred under this Agreement, shall be distributed to member agencies which are members of the Council on the date of dissolution Distribution of assets shall be in proportion to the funding formula for cost allocation as described in the Bylaws, in accordance with Article VI B of the Agreement, and existing at the time of dissolution. The debts, liabilities, and obligations of the Council shall not constitute a debt, liability, or obligation of any member agency. If assets cannot reasonably be distributed in proportion to the funding formula, the Council shall declare the assets to be surplus, and shall offer the assets for sale according to the requirements of chapter 43 19 RCW, and shall distribute the proceeds from the sale in proportion to the fundmg formula established by the Executive Board in accordance with Article VI B of this Agreement X. LIABILITY AND INSURANCE A. Any loss or liability to thud parties resulting from negligent acts, errors, or omissions of the Council, Member agencies (excluding Associate Members), Ex Officio Members, and/or employees while acting within the scope of their authority under this Agreement shall be borne by the Council exclusively, and the Council shall defend such parties, at its cost, upon request by the member agency, ex officio agency, and/or employee. B The Executive Board shall obtain commercial general liability, and auto liability insurance coverage for the Council, Executive Board, and any staff employed by the Council, at levels no less than $1 million single occurrence and $2 million aggregate for each type of liability that is insured The policy shall name each member agency, and their respective elected officials, officers, agents, and employees as additional insured's The Executive Board shall annually evaluate the adequacy of the Council's insurance coverage C The Executive Board shall require that all contractors and subcontractors utilized by the Council obtain insurance coverage consistent with Article X.B XI. LEGAL REPRESENTATION The Council may retain legal counsel Legal counsel may be an employee of a member agency, an outside entity, or an individual In the event of a conflict of interest the Council may retain substitute or additional legal counsel - The K its p County y Pfeseeuting A Rene •'s n ffl , a shall provide day to day legal adviee and aet as legal eeansel fer- the Couned and its appointees- provided that in the event a eefifliet exists between the Couneil and its appointees and any ethef event Fepmse b the D.. eseeu t ef ' s O ffl ee, the., the B f e ineF t en C A a ' Offi s h a ll pEevide SHOh Fepresentation, and provided fiH4her- that in the event a eenfliet exists between the represented by the BfE'HNCi4efi &4y Att6m@yrOff3ee, - then the aaemey f the Cities- island, BainbFidge > , and pfevided fiH4her- that in the event a eenfliet exists between the Getined and its appointees and a elient 7 2012 Amendments Additionally, and regaMless-of whether- a eenfliet of interest emsts as desefibed in the pmee the Council may retain outside legal counsel concerning any matter the Council deems appropriate Retained counsel shall serve, and be subiect to removal, pursuant to the terms and conditions established by agreement between legal counsel and the Council An adjustment in cost allocation to Members will be made if the Council retains outside legal counsel. XH. ENTIRE AGREEMENT This Agreement supersedes all previous Kitsap Regional Coordinating Council mterlocal agreements and all prior discussions, representations, contracts, and/or agreements between the parties relating to the subject matter of this Agreement and constitutes the entire contract between the parties XIII. MODIFICATION Except as provided by Article XIX, the terms of this Agreement shall not be altered or modified unless agreed to in writing by all member agencies and such writing shall be executed with the same formalities as are required for the execution of this document XIV. WAIVER The failure of any party to insist upon strict performance of any of the terms and conditions of this Agreement shall not be construed to be a waiver or relinquishment of same, but the same shall be and remain in full force and effect XV. NOTICE Except as provided in Article XVIII of this Agreement, any notice required by this Agreement shall be made in writing to the representative(s) identified in Article IV B of this Agreement with c eepy of sue � neti ,.�� a to the � n Notice is effective on . �...... ,.vzro ccrcv crn. �ccccrcra�c- atrcc�vr the third day following deposit with the U S Postal Service, regular mail XVI. SEVERABILITY If any of the provisions of this Agreement are held illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect XVH. CHOICE OF LAW AND VENUE This Agreement shall be governed by the laws of the State of Washington, both as to its interpretation and performance. Any action at law, suit in equity, or other judicial proceeding arising in connection with this Agreement may be instituted and maintained only in a court of competent jurisdiction in Kitsap County, Washington 8 2012 Amendments XVIII. CLAIMS A Any claim for damages made under chapter 4 96 RCW shall be filed with the Chair of the Kitsap Regional Coordinating Council, c/o the Clerk of the Kitsap County Board of Commissioners, 614 Division Street, MS4, Port Orchard, Washington, 98366 B Upon receipt of a claim for damages, or any other claim, a copy of the claim will be provided by the Clerk of the Board to the Executive Dir -ee*er ^nd to each member of the Executive Board XIX. EXECUTION AND FILING A Counterparts The parties agree that there shall be multiple original signature pages of this Agreement distributed for signature by the necessary officials of the parties. Upon execution, the executed original signature pages of this Agreement shall be returned to the Clerk of the Kitsap County Board of Commissioners, who shall file an executed original of this Agreement with the Kitsap County Auditor The Clerk of the Board shall distribute duplicate conformed copies of the Agreement to each of the parties Parties that sign on as Members at a later date will provide original signature pages of this Agreement to the Clerk of the Kitsap County Board of Commissioners, who shall file the signature pages provided with the Kitsap County Auditor The Clerk of the Board shall distribute duplicate conformed copies of the signature pages filed later, to each of the parties Addition of parties at a later date will not constitute a modification under Section XIII of this Agreement B. Later Approval and Filing Later approval and filing of this Agreement by additional parties as set forth in Article IV, Section D, shall be deemed an authorized amendment to the Agreement already on file with the Kitsap County Auditor, without the need for reconsideration and approval by parties that have already approved and executed the Agreement XX. EFFECTIVE DATE This Agreement shall go into effect among and between the parties upon its execution by all of the parties, as evidenced by the signatures and dates affixed below and upon its filing with the County Auditor as provided in Article XIX IN WITNESS WHEREOF, this Agreement has been executed by each party on the date set forth below Executed this _ day of , 2012. CITY OF BAINBRIDGE ISLAND Debbi Lester, Mayor 9 2012 Amendments i Executed this _ day of 9 2012 CITY OF BREMERTON Patty Lent, Mayor Executed this _ day of , 2012. CITY OF PORT ORCHARD Tim Matthes, Mayor Executed this _ day of 9 2012 CITY OF POULSBO Becky Erickson, Mayor Executed this _ day of , 2012 PORT OF BREMERTON Larry Stokes, President Executed this day of , 2012 KITSAP COUNTY BOARD OF COMMISSIONERS ROBERT GELDER, Chair CHARLOTTE GARRIDO, Commissioner ATTEST- Dana Daniels, Clerk of the Board JOSH BROWN, Commissioner 10 2012 Amendments APPROVED AS TO FORM Bainbridge Island City Attorney Bremerton City Attorney Port Orchard City Attorney Poulsbo City Attorney Port of Bremerton Attorney Deputy Prosecuting Attorney for Kitsap County 11 2012 Amendments AGENDA BILL 0Z CITY OF BREMERTON CITY COUNCIL ......................................................... ............................... SUBJECT: Bid Award — Emergency Study Session Date November 28, 2012 Generator Purchase for Fire Station #1, COUNCIL MEETING Date December 5, 2012 State of Washington Contract with EC Power Department PW &U Systems Presenter Chal Martin Phone 473 -5315 SUMMARY: The bid process was conducted by the State of Washington Department of Enterprise Services, State Contract #21403, for the purchase of a 400 kW generator set, transfer switch and accessories Lowest bidder was EC Power Systems in Auburn, Washington ATTACHMENTS: State of Washington Contract Generator Specifics FISCAL IMPACTS (Include Budgeted Amount) The general fund does have money to be able to purchase this item However, as it was not part of the originally adopted 2012 budget, it will require a budget amendment as part of the annual amendment done in December STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a 400 kW generator set, transfer switch and accessories from EC Power Systems in the amount of $72,306 00 plus tax, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented and further, move to include this item as part of the 2012 budget amendment COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 Fire Station #1, 911 Park Avenue Emergency Generator and Transfer Gear Project# 49088, 400 KW Generator Set Summary An emergency generator and associated equipment is required for the Fire Station #1 Facility Budget was identified for the purchase and placement in 2013 Due to current budget status, City's Finance Department requested that this purchase be made in 2012, if possible City Facilities staff worked and established specifications and requirements for this purchase then worked with the State of Washington Department of Enterprise Services and Contracts for bid services /state contract for the emergency generator and associated equipment purchase. Bids were advertised, solicited, received and evaluated by the State from 42 qualified vendors The low bidder was EC Power Systems in Auburn, Washington for the amount of $72,306 00 plus tax Specifications for Purchase Order 997151 Item Description Check if Describe as fully if not 1, City of Bremerton Fire Station #1 specified as specified GENERATOR 400 kW 3 Phase Gen Set and 600 AMP Automatic Transfer Switch Part 1 — General 1. Provide complete factory new assembled 400 kW Generator Set with electronic controls, governor, and voltage regulator. Provide factory test, start-up by a supplier authorized by the equipment manufacturer(s), and on -site testing of system 1 1 Personnel performing the task related to testing and start-up shall hold the appropriate certificate of competency as required by RCW 19 28 161 and in accordance with WAC 296 -466 -920 1 2 The generator set manufacturer shall warrant all equipment provided under this section, whether or not it is manufactured by the generator set manufacturer, so that there is one source for warranty and product service Technicians specifically trained and certified by the manufacturer to support the product and employed by the g enerator set supplier shall service the generator sets 2. Codes and Standards: 21 The generator set shall conform to the requirements of the following codes and standards, as applicable The generator set shall include necessary features to meet the requirements of these standards 22 NFPA70 — National Electrical Code As a minimum equipment shall be suitable for use ins stems incompliance to Article 702 23 NFPA110 —Emergency and Standby Power Systems The generator set shall, at a minimum, meet all requirements for Level 2 systems and have level 1 system capabilit 24 The generator set and supplied accessories shall meet the _ 1 requirements of the following standards V 25 NEMA MG1 Alternator shall comply with the requirements of this J standard 26 UL 2200 Listing 27 UL1236 — Battery Chargers 28 The control system for the generator set shall comply with the following requirements 29 NFPA 110 210 UL508 - The entire control system of generator set shall be UL508 listed and labeled 3. Acceptable Manufacturers: 31 Manufactures that meet the requirements of this specification may be submitted for approval At a minimum, the set shall be rated for standby service at 400 kW 277/480 Volt 3 phase 4 wire Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified- Part 2 — Products 4. Ratings: 41 The generator set shall operate at 1800 rpm and at a voltage of 277/480 Volts AC, 3 phase, 4 wire, and 60 hertz 42 The generator set shall be rated at 400 kW, 400kW /500kVA at 0 8 I PF, standby rating, based on site conditions of Altitude 100 ft , y ambient temperatures up to 90 degrees 43 The generator set rating shall be based on, as a minimum, Article 702 of the NEC for its service ratin 5. Performance: 51 Voltage regulation shall be plus or minus 1 percent for any constant rated load The instantaneous voltage dip shall be less than 16 percent of rated voltage when full, 3 -phase load, and rated power is applied to the alternator Recovery to stable operation shall occur within 2 seconds Stable or steady state operation is defined as operation with terminal voltage remaining constant within plus or minus 1 percent of rated voltage A panel mounted rheostat shall provide a minimum of plus or minus 5 percent voltage adjustment from rated value 52 The diesel engine- generator set shall accept a single step load of 100% nameplate kW and power factor, less applicable derating factors, with the engine-generator set at operating temperature 53 The alternator shall be a 4 -pole, revolving field design with temperature - compensated, solid state voltage regulator and brushless rotating rectifier exciter system The alternator insulation class at a minimum shall be Class F 54 The engine must be EPA compliant for use at the installation location and rating, and shall meet all applicable exhaust emission requirements at the time of commissionin 6. Construction: 61 All switches, lamps, and meters in the control system shall be oil - tight and dust -tight There shall be no exposed points in the control with the door open) that operate in excess of 50 volts 7. Connections: 71 The generator set load connections shall be composed of silver or tin plated copper bus bars 72 Generator set control interfaces to other system components shall be made on a permanently labeled terminal block assembly Labels describing connection point functions shall be provided Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified 8. Engine and Engine Equipment: 81 The engine shall be diesel, 4 cycle, water cooled with mounted radiator, fan, water pump, block heater and battery charger The horsepower rating of the engine at its minimum tolerance level shall J be sufficient to drive the alternator and all connected accessories for 100% rated load Two cycle engines are not acceptable Engine accessories and features shall include 82 Electric starter(s) capable of four complete cranking cycles without overheatin 83 Remote starting shall be by a 12 or 24 -volt, solenoid shift electric - J starter 84 The engine shall have a 12 or 24 volt battery charging DC alternator with a transistorized voltage regulator 85 Positive displacement, mechanical, full pressure, lubrication oil um 86 Full flow lubrication oil filters with replaceable spin -on canister _ t elements and dipstick oil level indicator V 87 Engine speed shall be governed by an electronic governor with electric actuator to maintain alternator frequency within 2 percent from no -load to full -load alternator output 88 Skid- mounted radiator and cooling system rated for full load operation in' 122 degrees F (50 degrees C) ambient as measured at the alternator air inlet Radiator shall be sized based on a core temperature that is 20F higher than the rated operation temperature, or prototype tested to verify cooling performance of the engine /radiator /fan operation in a controlled environment Radiator shall be provided with a duct adapter flange The equipment manufacturer shall fill the cooling system with a 50/50 - ethylene glycol/water mixture prior to shippin 89 An engine driven, mechanical, positive displacement fuel pump Fuel filter with replaceable spin -on canister element Fuel cooler, suitable for operation of the generator set at full rated load in the ambient temperature specified shall be provided if required for operation due to the design of the engine and the installation 810 The generator shall have Sub base tanks, 24 Hr Secondary containment, 5 gal spill w /fill pipe ext Tank Ht 21" normal vent 12' fors ill 811 Replaceable dry element air cleaner 812 Flexible supply fuel lines and high fuel switch 8 13 Engine mounted battery charging alternator, 40- ampere minimum and solid -state voltage regulator 814 Provide vibration isolators, in the quantity and locations as recommended by the generator set manufacturer Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 ° specified as specified 815 Starting and control batteries shall be lead acid type, 12 or 24volt DC The batteries shall be capable of a minimum of four complete 15- second cranking cycles at 40F ambient temperature when fully charged The battery supply circuit shall be designed such that routine maintenance of changing the batteries shall not effect or cause to allow a surge to damage the electronic equipment when the batteries are re- connected if needed, an information name plate shall be clearly visible adjacent to the battery describing the p rocedure for changing batteries 816 Provide exhaust silencer for engine of size and type as recommended by the generator set manufacturer and approved by the engine manufacturer The muffler shall be critical grade and must include a stainless steel flexible connector Provide installation requirements for muffler installation 9. Coolant Heater: 91 Engine mounted, thermostatically controlled coolant heater(s) for _ I each engine The coolant heater shall be UL499 listed below V 92 The coolant heater shall be installed on the engine with silicone hose connections The coolant heater installation shall be specifically designed to provide proper venting of the system The coolant heater shall provision to isolate the heater for replacement of the heater element or without draining the coolant from the g enerator set 93 The coolant heater shall be provided with a DC thermostat, installed at the engine thermostat housing An AC power connection box _ 1 shall be provided for a single AC power connection to the coolant V heaters stem 94 The coolant heater(s) shall be sized as recommended by the engine manufacturer to warm the engine to a minimum of 104F (40 C ) in a 40F 4 C ambient for starting and load pickup requirements 10. AC Generator: 101 The AC generator shall be, synchronous, four pole, revolving field, single pre - lubricated sealed bearing, air cooled by a direct drive centrifugal blower fan, and directly connected to the engine with flexible drive disc All insulation system components shall, at a minimum, meet temperature limits for Class F insulation 102 The generator shall be capable of delivering rated output (kVA) at rated frequency and power factor, at any voltage not more than 5% above or below rated voltage Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified 103 A permanent magnet generator (PMG) shall be included to provide a reliable source of excitation power for optimum motor starting and short circuit performance The PMG and controls shall be capable of sustaining and regulating current supplied to a single phase or three phase fault at approximately 300% of rated current for not more than 10 seconds 11. Generator Set Control: 11 1 The generator set shall be provided with a electronic - based control system that is designed to provide automatic starting, monitoring, and control functions for the generator set The control system shall also be designed to allow local monitoring and control of the generator set, and remote monitoring and control as described in this specification A cranking limiter shall be provided to open the starting circuit in approximately 45 to 90 seconds if the engine is not started in that time The cranking circuit shall make 4 attempts to start the set and shut down if unsuccessful 112 The control shall be mounted on the generator set The control shall be vibration isolated and prototype tested to verify the - t durability of all components in the system under the vibration �! conditions encountered 113 The generator set mounted control shall include the following - I features and functions V 12. Control Switches: 121 EMERGENCY STOP switch Switch shall be Red "mushroom- head" push - button Depressing the emergency stop switch shall cause the generator set to immediately shut down, and be locked out from automatic restarting Resetting the emergency stop switch shall resume normal operation 122 MODE SELECT switch The engine controls shall also include a 3- positron selector switch with the following positions "RUN," "STOP," and "AUTOMATIC " The mode select switch shall initiate the following control modes When in the RUN or MANUAL position the generator set shall start, and accelerate to rated speed and voltage _ t as directed by the operator A separate push -button to initiate �t starting is acceptable In the OFF positron the generator set shall immediately stop, bypassing all time delays In the AUTO position the generator set shall be ready to accept a signal from a remote device to start and accelerate to rated speed and voltage 123 RESET switch The RESET switch shall be used to clear a fault and allow restarting the generator set after it has shut down for any fault condition 124 PANEL LAMP switch Control panel shall be provided with a lamp 1 test switch which will indicate if any of the lamps are defective V Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe 1 as fully if not • specified as specified- 125 Generator Set AC Output Metering The generator set shall provide I J with a metering set including the following features and functions I 126 Analog voltmeter, ammeter, frequency meter Voltmeter and 3 ammeter shall display all three phases Generator output voltage J display shall be available in line -to -line and line -to- neutral voltages, I l and all three phase amperes with a selector switch 127 The control system shall log the total number of operating hours i ! 13. Generator Set Alarm and Status Display: ! 131 The generator set control shall include LED alarm and status I - indication lamps The lamp condition shall be clearly apparent under bright room lighting conditions Functions indication by the lamp shall include ! 132 The control shall include green, lamps to indicate that the i generator set is running at rated frequency and voltage, and that a remote start signal has been received at the generator set The running signal shall be based on actual sensed { voltage and frequency on the output terminals of the g enerator set 13 3� The control shall include a flashing red lamp to indicate that the control is not in automatic state, and red common shutdown lamp_ 134 The control shall include an amber common warning indication lam 135 The generator set control shall indicate the existence of the warning and shutdown conditions on the control panel Conditions required t o be a nnunciated shall inclu ' 136 ! • Low oil pressure (warning) 13 7 • Low oil pressure (shutdown) 138 • Low coolant temperature (shutdown) 139 ' . High coolant tempera (warning) 1310 . High coolant temperature (shutdown) 13 11 _ � . Hi gh oil t emperat ure (warning) 1312 �• Low c level (w 1 313 Fail to start/over crank (shutdown) V ^ 13 14 • O ver speed (shutdown) 1315 Low D C voltage (warning) 1 1316 High DC voltage (warning) ti 1317 • Low fuel -day tank (warning) _ N om __ 13 18 • Over load (warning) 13 19 • Emergency stop (shutdown) r Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe 1 as fully if not specified as specified 14. Engine Status Monitorin 141 The following information shall, as a minimum be available from panel mounted gauges and meters for engine /alternator system data 142 Engine oil pressure (psi) € 14 3 Engine coolant temperature (degrees F) 144 Battery voltage j € 145 Engine speed 146 A -C voltage (selector) 147 A -C amperage (selector) 148 Hour meter 149 External voltage adjust 1410 Emergency Stop Button 1411 ' Warning lamps 15. Engine Control Functions: 151 The control system provided shall include a cycle cranking system limiter which will open the cranking circuit after four 15 second attempts to start and shut down if unsuccessful 152 The control system shall include an engine governor control, which functions to provide steady state frequency regulation as noted elsewhere in this specification 1 Alternator Control Functions: 161 The generator set shall include a full wave rectified automatic electronic voltage regulation system that is matched and prototype tested by the engine manufacturer with the governing system provided An externally mounted rheostat with lock shall be made V available to allow field adjustments of plus or minus 5 percent i voltage ad ustment fro rated value for emergency operator use " 162 Controls shall be provided to individually monitor all three phases of 1 the output current of the generator 17. Other c ontrol Fun _ 171 Battery monitoring shall be provided to warn of a possible low ' r voltage batte condition V 18 Other Equipment to B e Provided with the Generator Set: 181 The generator set shall be provided with a mounted mainline circuit - — - -- breaker rated at 104 degree F 40 degree C, and sized to carry the rated output current of the generator set Mainline breaker to meet th minimum output rating of the Generator Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified 19. Outdoor Weat her - Protective Enclosure, NEMA 3R rated: 191 The generator set shall be provided with an outdoor enclosure, with the entire package listed under UL2200 The package shall comply with the requirements of the National Electrical Code for all wiring materials and component spacing The total assembly of generator set, enclosure shall be designed to be lifted into place using spreader bars Housing shall provide ample airflow for generator set operation at rated load in an ambient temp of 10OF The housing shall have hinged access doors as required to maintain easy access for all operating and service functions All doors shall be lockable, and include retainers to hold the door open during service Enclosure roof shall be cambered to prevent rainwater accumulation Openings shall be screened to limit access of rodents into the enclosure All electrical power and control interconnections shall be made within the perimeter of the enclosure 192 All sheet metal shall be primed for corrosion protection and finish painted with the manufacturer's standard color using a two step electro - coating paint process, or equal All surfaces of all metal parts shall be primed and painted Primer thickness 0 5 - 2 0 mils Top coat thicknes 0 8 - 1 2 mils 193 Painting of hoses, clamps, wiring harness, and other non - metallic service parts shall not be acceptable Fasteners used shall be J corrosion resistant, and designed to minimize marring of the painted surface when remove for normal installation or service work 194 Enclosure shall be constructed of minimum 12 gauge steel for framework and 14 gauge steel for panels All hardware and hinges sha be stainless steel I 195 A factory- mounted exhaust silencer shall be installed inside the enclosure The exhaust shall exit the enclosure through a ram J collar and terminate with a rain cap Exhaust connections to the _ enerator set shall be through seamless f lexible connections 96 The enclosure shall include the following maintenance provisions 197 I Flexible coolant and lubricating oil drain lines that extend to the _ Jµ exterior of the enclosure, with internal drain valves 198 External radiator fill provision 199 ; The generator set shall be provided with a sound - attenuated housing which allows the generator set to operate at full rated load in an ambient temperature of up to 10OF The enclosure shall reduce the sound level of the generator set while operating at full rated load to a maximum of 78 dBA at any location 7 meters from t he generator set in a free field environment 19 10 The enclosure shall be insulated with non- hydroscopic materials �� Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified 20. Automatic Transfer Switch 201 Provide an automatic transfer switch that has been prototype tested, factory built, production tested, of the latest commercial design, together with all accessories necessary for a complete installation as specified herein The automatic transfer switch shall conform to the requirements the Washington State WAC and RCW administrative codes, meet the requirements of a Washington State approved testing lab, and as a minimum, meet the requirements of Article 702 of the National Electrical Code 21. Submittal 21 1 Submittal shall include specification sheets showing all standard and optional accessories supplied, schematic wiring diagrams, dimension drawings, and interconnection drawings identifying by terminal number each required interconnection between the g enerator set and the transfer switch 212 The transfer switch enclosure shall be NEMA 1 rated 22. Acceptable Manufacturers 221 Manufactures that meet the requirements of this specification may be submitted for approval 23. Switch Characteristics 231 The automatic transfer switch shall be rated to withstand the rms symmetrical short circuit current available at a minimum of 33K -amp J interrupting capacity The switch shall be rated for the existing electrical service at 600 AMP, 480Y/277 volts 232 The automatic transfer switch shall consist of an electronic based controller, interconnected to provide a complete automatic operation The automatic transfer switch shall be mechanically held and electrically energized from the source to which the load is to be transferred The switch shall be rated for continuous duty and be inherently double -throw The switch shall be mechanically held and interlocked to ensure only one of two possible positions - normal or emergency The switch shall be rated to transfer under full load 233 Sensing and control logic shall be solid -state and mounted on plug - in printed circuit boards Printed circuit boards shall be keyed to prevent incorrect installation Interfacing relays shall be industrial - control- grade, plug -in type with dust covers and locking clips The following shall also be provided for the control module Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe 1 as fully if not specified as specified 234 I For three phase switches all phases of the normal source shall be i monitored line -to -line and line to neutral with both over and under voltage sensing The ATS shall have a control disconnect switch mounted on the door face (with label) to disengage the control circuit for manual operation Manual switch transfer is accomplished by on station personnel and safety is a major concern. This transfer switch shall have a permanently installed insulated transfer handle and an insulated shield to isolate the operator from all energized parts. Separate operating handles that will receive into the transfer mechanism or systems that need both hands in separate positions to i operate the switch are not acceptable. The switch shall be inherently compatible with the engine generator set and have a program time delay to neutral Close differential voltage sensing shall be provided The pickup voltage and the dropout voltage shall be adjustable The transfer to emergency and re- transfer voltage settings s hall also be adj ustable 235 i Neutral conductor terminal lugs as required for the system and a - test switch to momentarily simulate normal source failure shall be V included J 23 _6I Harnessing between transfer switch and control panel shall have a _ 1 built -in disconnect for routine mainte V 237 Automatic operation of the switch shall not require power from any i source other than the line -to -line voltage of the source to which the switch is transferring 24 . Switch Acc essories 24 1 Th following accessories shall be included I 242 (TDNE) Time delay on transfer from Normal to Emergency j ( adjustable 0 - 60 seconds 24 (IDES) Time delay on Engin Starting (factory set at 3 second 244 (TDEN) Time delay on transfer from Emergency to Normal ( adjustable 0 -30 minutes) 245 (TDEC) T ime delay on engine cool down (adjustable 0 to 30 min) 246 Be provided with a door - mounted Operator Control Selector Switch with Test, Normal, and Retransfer positions Test position shall allow the operator to test the system under load or no -load conditions 247 Disconnect plug to preven a utomatic operation 248 Green lamp to indicate switch in normal position and normal power is supplyiM lo _ 249 Red lamp to indicate switch in emergency position and emergency power is supplyin loads Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe 1 as fully if not specified as specified- 2410 Main shaft auxiliary contact rated 10 ampere at 480 V (one closed on normal and one closed on emergenc 25. Site Tests 251 An installation check and building load test shall be performed by the manufacturer's local representative Every effort shall be made by the supplier to coordinate with the owner on a mutual time for the test The Facility staff, regular operators and the maintenance staff shall be notified of the time and date of the site test The tests shall include manual start-up by means of simulated power outage 26. Warran 261 The automatic transfer switch shall be warranted by the manufacturer for two 2 ears from the date of installation Part 3 - Operations 27. Sequence of Operation 271 Generator set shall start on receipt of a start signal from remote equipment The start signal shall be via hardwired connection to the g enerator set control 272 The generator set shall complete a time delay start period as p rogrammed into the control 273 The generator set control shall initiate the starting sequence for the generator set The starting sequence shall include the following functions 274 The control system shall verify that the engine is rotating when the starter is signaled to operate If the engine does not rotate after four attempts, the control system shall shut down and lock out the g enerator set, and indicate "fail to crank" shutdown 275 The engine shall fire and accelerate as quickly as practical to start disconnect speed If the engine does not start, it shall complete a cycle cranking process as described elsewhere in this specification If the engine has not started by the completion of the cycle cranking sequence, it shall be shut down and locked out, and the control system shall indicate "fail to start" 276 The engine shall accelerate to rated speed and the alternator to rated voltage Excitation shall be disabled until the engine has exceeded programmed idle speed, and regulated to prevent over voltage conditions and oscillation as the engine accelerates and the alternator builds to rated voltage 277 On reaching rated speed and voltage, the generator set shall operate as dictated by the controls stem Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe 1. as fully if not specified as specified 278 When all start signals have been removed from the generator set, it shall complete a time delay stop sequence The duration of the time delay stop period shall be adjustable by the operator 279 On completion of the time delay stop period, the generator set control shall switch off the excitations stem and shall shut down 2710 Any start signal received after the time stop sequence has begun shall immediately terminate the stopping sequence and return the g enerator set to isochronous operation Part 4 — Other Requirements 28. Submittals 281 Within 10 days after award of contract, contractor shall provide one (1) set of the following information for review and, provide an additional two (2) sets of product literature with the delivery of the equipment 282 . Manufacturer's product literature and performance data, sufficient to verify compliance to specification requirements 283 . A paragraph by paragraph specification compliance statement, describing the differences between the specified and the proposed equipment 284 . Manufacturer's certification of prototype testing 285 . Manufacturer's published warranty documents 286 a Shop drawings showing plan and elevation views with F certified overall dimensions, as well as wiring interconnection details 287 Interconnection wiring diagrams showing all external connections required, with field wiring terminals marked in a ! consistent point-to-point manner 288 . Manufacturer's installation instructions 29. Installation 291 The equipment supplier will be responsible for delivery to the City of Bremerton, Fire Station #1, 911 Park Avenue Bremerton WA 98337 City of Bremerton staff will arrange for complete installation prior to the on -site acceptance testing Note Acceptance testing to be p erformed when City of Bremerton install is complete. 31. On -Site Acceptance Test 301 The complete installation shall be tested for compliance with the ! specification following completion of all site work Testing shall be conducted by representatives of the manufacturer, with required fuel supplied by City of Bremerton i 302 Installation acceptance tests to be conducted on -site shall include a "cold start" test, a two hour load bank test a nd a building load test ! Specifications for Purchase Order 997151 Item 1.400 kW Gen Set and 600 AMP Transfer Switch Item Description Check if Describe as fully if not 1 • specified as specified 303 Perform a power failure test on the entire installed system This test shall be conducted by opening the power supply from the utility _ t service, and observing proper operation of the system Coordinate V timing and obtain approval for start of test with site personnel 31. Training 31 1 The equipment supplier shall provide training for the facility operating personnel covering operation and maintenance of the equipment provided The training program shall not be less than four (4) hours in duration and the class size shall be limited to five (5) persons Training date shall be coordinated with City of Bremerton Facility staff Training shall include start, stop, manual and automatic operation of the generator and service requirements and intervals for the aenerator 32. Service and Support 321 The manufacturer of the generator set shall maintain service parts inventory at a central location which is accessible to the service location 24 hours per day, 365 days per year 322 The generator set shall be serviced by a local service organization that is trained and factory certified in generator set service The supplier shall maintain an inventory of critical replacement parts at the local service organization, and in service vehicles The service organization shall be on call 24 hours per day, 365 days per year The service organization shall have a service technician on site within 24 continuous hours of receiving the service call 33. Warrant 331 The generator set and associated equipment shall be warranted for a period of not less than 2 years with parts and labor from the date of commissioning against defects in materials and workma 34. Publications 341 Contractor to provide three (3) copies of Operation and Maintenance Manuals at the time of delive End of Document AGENDA BILL 5;f CITY OF BREMERTON CITY COUNCIL ......................................................... ............................... SUBJECT: Resolution No 3185 amending Study Session Date 11/28/12 and re- establishing City Rates and Fees for COUNCIL MEETING Date 12/05/12 2013 Department All Presenter Becky Hasart Phone 360 -473 -5722 SUMMARY: Each year as part of the budget process, the various City departments review their charges, rates and fees for services and make recommendations on any changes needed The attached includes recommended changes to fees charged by the various departments ATTACHMENTS: Resolution No 3185 FISCAL IMPACTS (Include Budgeted Amount) Impacts to revenues are dependent on the demand for services The 2013 proposed budget does anticipate the approval of this resolution and related rate table STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Resolution No 3185 as presented COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 RESOLUTION NO. 31 S A RESOLUTION of the City Council of the City of Bremerton, Washington, amending and reestablishing rates and fees for services relating to the Department of Financial Services, Municipal Court, Department of Community Development, Police Department, Fire Department, Parks and Recreation Department, Department of Public Works and Utilities and Bremerton Kitsap Access Television (BKAT) WHEREAS, the City Council desires to amend and reestablish the rates and fees established in prior Resolution Nos 3128, 3133, 3145, 3156, 3168, and 3172, by this resolution, NOW THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS SECTION 1. Resolutions Repealed Resolution Nos 3128, 3133, 3145, 3156, 3168, and 3172 are hereby repealed in their entirety SECTION 2. Rate Tables amended Rates and fees for services relating to the Department of Financial Services, Municipal Court, Department of Community Development, Police Department, Fire Department, Parks and Recreation Department, Department of Public Works and Utilities and Bremerton Kitsap Access Television (BKAT), as established and amended by Resolution Nos 3128, 3133, 3145, 3156, 3168, and 3172, are hereby amended and reestablished herein by this Resolution as set forth in the rates tables attached hereto as Exhibit A, incorporated herein by reference SECTION 3. ff ecttve Date of Sections I and 2 The repeal of resolutions as set forth in Section 1 above and the amendment and restatement of rate tables as set forth in Section 2 above shall be effective January 1, 2013 SECTION 4. Severabdtty If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect SECTION 5. Effective Date This Resolution shall take effect and be in force immediately upon its passage PASSED by the City Council of the City of Bremerton, Washington this day of , 2012 JIM McDONALD, Council President 1 2013 Rates and Fees i APPROVED AS TO FORM. ATTEST- ROGER A. LUBOVICH, City Attorney SHANNON CORIN, City Clerk R U. egal \Legai\Resolutions\Finance\2013 Rates and Fees Tables\2013 Resolution establishing Rate Tables doc 2 2013 Rates and Fees FINANCIAL SERVICES — RATE TABLE A All Rates Listed are "Not To Exceed" Fees A. FINANCIAL SERVICES 1. REGULATORY LICENSE FEES RATE BMC 5 17 Charitable Solicitation Non - Profit $25/60 days Professional Fundraiser $675/60 days BMC 5 22 Dance /Public $265/yr or $70/30 days BMC 5 96 Erotic Dance Studios $700 /yr Dancers $100 /yr A le BMC 5 16 Mobile Food Vendor $150 /veh /yr BMC 5 16 Peddlers $75 /yr or $25 /30days BMC 5 36 Special Events $100 00 /event BMC 5 08 Street/Sidewalk Vendors $250 /yr BMC 5 16 Temporary Merchant $400/30 days 2. BUSINESS LICENSE FEE RATE BMC 5 02 $75 /yr 3. PARKING On- Street Locations Not to Exceed $20/3 hrs $30/10 hrs Off - Street Location Not to Exceed $20/3 hrs $30/10 hrs Parking Garage Not to Exceed $160 /mo EXHIBIT A Resolution No FINANCIAL SERVICES — RATE TABLE A All Rates Listed are "Not To Exceed" Fees 4. UTILITY /LIEN SEARCH FEES RATE Per Parcel $30 /search per parcel 5. DOCUMENT REPRODUCTION FEES (Including scanning to Electronic Format) Per Page - 8'/2 x 11, 8'/2 x 14 and 11 x 17 paper size (No fee for $0 15 /pg first 50 pages) Audio OF Video Tapes Video Reproduction $10 GO Actual Costs including personnel time GeFnpUteF D16 CD /DVD $4%2 00 Certification $3-59 00 Oversized Plans, Aerial Photos, Drawings, and Maps (Black and $8 /pg White) Color GIS Plotted Maps $5 /sq ft Other Documents Medical Records Fees shall be pursuant to RCW 70 02 010(12) Budget (Hard Copy) $50 (Electronic Version) $10 Annual Report (Hard Copy) $25 (Electronic Version) $10 In addition to the above fees, each department may establish fees for records that do not fall into one of the above categories Each department and the City Clerk shall have the department's fee schedule available for inspection upon request 6. CHECK HANDLING FEE $40 EXHIBIT A Resolution No MUNICIPAL COURT — RATE TABLE B All Rates Listed Are "Not To Exceed" Fees B. Municipal Court RATE 1. HEARING EXAMINER APPEAL $65 2. PARKING PENALTIES Overtime or Non - Payment in Collection Devices 1 Violation in 30 Days $25 2 "d Violation in 30 Days $32 P Violation in 30 Days $56 Loading Zones $17 No Parking $45 Wrong Way $45 Parked on Sidewalk $56 Fire Hydrant $45 12" From Curb $10 Physically Disabled (Public and Private) $250 Counterfeiting or User of Counterfeit Permits, $500 Tokens or Script Unauthorized Use of Permits $150 All Other Infractions Not Specified Above $27 Replacement of parking permit $1000 Blocked Driveway $4500 Expired Tabs $4500 30 Foot to Stop Sign $4500 Double Parked $4500 No Stopping/No Standing $4500 Parking Capacity Survey $25000 3. TRAFFIC PENALTIES Inattentive Driving $12400 EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees C. DEPARTMENT OF COMMUNITY DEVELOPMENT RATE 1. SUBDIVISIONS Preliminary Short $1000 + $150 per lot Preliminary Formal Plat/Binding Site Plan $2500+ $150 /lot (1 -100 lots) $100 /lot (101 -200 lots) $75 /lot (201 + lots) Final Short $630 + $40 /lot Final Formal Plat/Binding Site Plan $945 + 40 /lot 2. SHORELINE MASTER PROGRAM Substantial Development Permit $1,300 Conditional Use Permit — Type II 850 Conditional Use Permit — Type III $1750 Shoreline Variance $1750 Permit Revision $325 Shoreline Exemption $100 3. STATE ENVIRONMENTAL POLICY ACT (SEPA) Checklist $320 Environmental Impact Statement Review /Adoption $650 + additional cost of expertise 4. APPEAL (to Hearing Examiner) $350 5. PRE - APPLICATON CONFERENCE $100 6. ABATEMENTS Dangerous Building $900 + Direct Service and Supply Cost Garbage & Weed $640 + Direct Service and Supply Cost 7. BUILDING PERMIT FEES Ref M to Exhibit 1 Refer to Exhibit 1 8. PLAN REVIEW FEE 65% of the building Note ° permit fee as set forth in sttbffHtta1s ef idenfteal r-esidential pleas within a ealeadaf year- This waiver- Exhibit 1 9. ESTABLISHED "BASIC" PLAN REVIEW Pursuant to DCD policy 50% of Plan Review Fee 9 MECHANICAL PERMIT FEES Residential Refer to Exhibit 2 Commercial / Non - Residential / Multifamily Valuation and Refer to Exhibit 1 EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees RATE 49 PLUMBING PERMIT FEES Refer- to Exhibit 3 Residential Refer to Exhibit 3 Commercial / Non - Residential / Multifammly Valuation and Refer to Exhibit 1 4412. GRADING PERMIT AND PLAN REVIEW FEES Refer to Emhibit 4 Refer to Exhibit 4 1-313. ZONING ORDINANCE Ordinance Amendments Text $740 Rezone (Map Amendment) $740 Variance Administrative $325 Public Hearing/Single Family $500 Public Heanng/Other $1750 Residential Cluster- Development X599 Development Agreements $1600 Conditional Use Permit Single Family Residential Type II $350 Single Family Residential Type III 500 Commercial / Non - Residential / Multifamily — Type II 850 ommercial / Non - Residential / Multifamily $1750 — Type III Non - Conforming Use Determination $275 Director ='s Code Interpretation $175 4314. COMPREHENSIVE PLAN Text or Map Amendment $1500 Combined Text and Map Amendment $2500 4415. SITE PLAN REVIEW Typ T erri [ U50 Commercial / Non - Residential / Multifamily — Type II Peffmt $500 4616. SITE DEVELOPMENT PERMIT $500 (Fee waived if concurrent with Site Plan Review) 4617. MULTIFAMILY TAX EXEMPTION Application $1500 EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees RATE 4-718. DESIGN REVIEW BOARD Conceptual Design Conference $500 Design Response Conference $500 4-819. MISCELLANEOUS FEES Hourly Rate $5600 Stop Work Fee 100 % of permit fee EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees Exhibit A COMMUNITY DEVELOPMENT — RATE TABLE C EXHIBIT 1 BUILDING AND OTHER PERMIT FEES TOTAL VALUATION FEE - $100 TO $500 00 $2600 $50100 TO $2,000 00 $26 00 for the first $500 00 plus $3 00 for each additional $100 00, or fraction thereof, to and including $2,000 00 $2,00100 to $40,000 $69 00 for the first $2,000 00 plus $11 00for each additional $1,000 00, or fraction thereof, to and including $40,000 $40,00100 to $100,000 00 $487 00 for the first $40,000, plus $9 00 for each additional $1,000 00, or fraction thereof, to and including $100,000 00 $100,001 00 to $500,000 00 $1,027 00 for the first $100,00 00 plus $7 00 for each additional $1,000 00, or fraction thereof, to and including $500,000 00 $500,00100 to $1,000,000 00 $3,827 00 for the first $500,000 00 plus $5 00 for each additional $1,000 00, or fraction thereof, to and including $1,000,000 00 $1,000,001 00 to 5,000,000 00 $6,327 00 for the first $1,000,000 00 plus $3 00 for each additional $1,000 00, or fraction thereof, to include $5,000,000 00 $5,000,00100 and over $18,327 00 for the first $5,000,000 00, plus $100 for each additional $1,000 00 or fraction thereof Other Inspections and fees 1 Inspections outside of normal business hours $56 00 per hour' (minimum charge — two hours) 2 Re inspection fees assessed under provisions of this chapter shall be as follows (per inspection) $56 00 per hour' 3 Inspections for which no fee is specifically indicated $56 00 per hour' (minimum charge — one -half hour) 4 Additional plan review required by changes, additions or revisions to plans $56 00 per hour' (minimum charge — one -half hour) 5 For use of outside consultants for plan checking and inspections, or both Actual CostS 6 Merle- Manufactured Home Setup Fee Bid Price valuation used in Exhibit 1 Deable Wide Wo 00 — nple Wide $20000 7 Moved Building Permit Fee (not including other required pernuts) $10000 8 Demolition permit Fee 3 cents per square foot, with a minimum charge of $5600 9 Energy Code Plan Review Surcharge for New Single Family Residences $5000 Or the total hourly cost to the jurisdiction, whichever is the greatest This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved 2 Actual costs include administrative and overhead costs EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT 2 MECHANICAL PERMIT FEES Permit Issuance and Heaters Fee 1 For the issuance of each mechanical permit $2350 2 For issuing each supplemental permit for which the original permit has not expired, been canceled or finaled $725 Unit Fee Schedule (Note The following do not include permit - issuing fee) 1 Furnaces For the installation or relocation of each forced -air or gravity -type furnace or burner, including ducts and vents attached to such appliance, up to and including 100,000 Btu/h (29 3 kW) $1480 For the installation or relocation of each forced -air or gravity -type furnace or burner, including ducts and vents attached to such appliance over 100,000 Btu/h (29 3 kW) $1820 For the installation or relocation of each floor furnace, including vent $1480 For the installation or relocation of each suspended heater, recessed wall heater or floor - mounted unit heater $1480 2 Appliance Vents For the installation, relocation or replacement of each appliance vent installed and not included in an appliance permit $725 3 Repairs or Additions For the repair of, alteration of, or addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption or evaporative cooling system, including installation of controls regulated by the Mechanical Code $1370 4 Boilers, Compressors and Absorption Systems For the installation or relocation of each boiler or compressor to and including 3 horsepower (10 6 kW), or each absorption system to and including 100,000 Btu/h (29 3 kW) $1470 For the installation or relocation of each boiler or compressor over three horsepower (10 6 kW) to and including 15 horsepower (52 7 kW), or each absorption system over 100,000 Btu/h (29 3 kW) to and including 500,000 Btu/h (146 6 kW) $27 15 For the installation or relocation of each boiler or compressor over 15 horsepower (52 7 kW) to and including 30 horsepower (105 5 kW), or each absorption system over 500,000 Btu/h (146 6 kW) to and including 1,000,000 Btu/h (293 1 kW) $3720 For the installation or relocation of each boiler or compressor over 30 horsepower (105 5 kW) to and including 50 horsepower (176 kW), or each absorption system over 1,000,000 Btu/h (293 1 kW) to and including 1,750,000 Btu/h (512 9 kW) $5545 For the installation or relocation of each boiler or compressor over 50 horsepower (176 kW), or each absorption system over 1,750,000 Btu/h (512 9 kW) $9265 5 Air Handlers - For each air - handling unit to and including 10,000 cubic feet per minute (cfm) (4719 L /s), including ducts attached thereto Note: This fee does not apply to an air - handling unit which is a portion of a factory- assembled appliance, cooling unit, evaporative cooler or absorption unit for which a permit is required elsewhere in the Mechanical Code $1065 For each air - handling unit over 10,000 cfm (4719 s) $18 10 EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees 6 Evaporative Coolers For each evaporative cooler other than portable type $1065 7 Ventilation and Exhaust For each ventilation fan connected to a single duct $725 For each ventilation system which is not a portion of any heating or air - conditioning system authorized by a permit $1065 For the installation of each hood which is served by mechanical exhaust, including the ducts for such hood $1065 8 Incinerators For the installation or relocation of each domestic -type incinerator $1820 For the installation or relocation of each commercial or industrial -type incinerator $1450 9 Miscellaneous For each appliance or piece of equipment regulated by the Mechanical Code but not classed in other appliance categories, or for which no other fee is listed in the table $1065 For each gas piping system of 1— 5 outlets $625 For each additional gas piping system outlet, per outlet $125 Other Inspections and Fees Inspections outside of normal business hours, per hour (minimum charge — two hours $49 50' Re- inspection fees assessed under provisions of this chapter shall be as follows (per inspection) $49 50' Inspections for which no fee is specifically indicated, per hour (minimum charge — one -half hour) $49 50' Additional plan review required by changes, additions or revisions to plans or to plans for which an initial review has been completed (minimum charge — one -half hour) $49 50' 'Or the total hourly cost to the jurisdiction, whichever is the greatest This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved EXHIBIT A Resolution No COMMUNITY DEVELOPMENT — RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT 3 PLUMBING PERMIT FEES Permit Issuance 1 For issuing each permit $2000 2 For issuing each supplemental permit $1000 Unit Fee Schedule (in addition to items 1 and 2 above) 1 For each plumbing fixture on one trap or a set of fixtures on one trap (including water, drainage piping and backflow protection therefore) $700 2 For each building sewer and each trailer park sewer $1500 3 Rainwater systems — per drain (inside building) $700 4 For each cesspool (where permitted) $2500 5 For each private sewage disposal system $4000 6 For each water heater and/or vent $700 7 For each gas piping system of one to five outlets $500 8 For each additional gas piping system outlet, per outlet $100 9 For each industrial waste pretreatment interceptor including its trap and vent, except kitchen -type grease interceptors functiomng as fixture traps $700 10 For each installation, alteration or repair of water piping and/or water treating equipment, each $700 11 For each repair or alteration of drainage or vent piping, each fixture $700 12 For each lawn sprinkler system on any one meter including backflow protection devices therefore $700 13 For atmospheric -type vacuum breakers not included in item 12 1 to 5 $500 Over 5, each $100 14 For each backflow protective device other than atmospheric type vacuum breakers 2 inch (51 mm) diameter and smaller $700 Over 2 inch (51 mm) diameter $1500 15 For each graywater system $4000 16 For initial installation and testing for a reclaimed water system $30 00 17 For each annual cross - connection testing of a reclaimed water system (excluding initial test ) $30 00 18 For each medical gas piping system serving one to five inlet(s)/outlet(s) for a specific gas $5000 19 For each additional medical gas inlet(s)/outlet(s) $500 Other Inspections and Fees 1 Inspections outside of normal business hours $30 00 2 Re-inspection fee $3000 3 Inspections for which no fee is specifically indicated $30 00 4 Additional plan review required by changes, additions or revisions to approved plans (mmimum charge — one -half hour) $30 00 'Per hour for each hour worked or the total hourly cost to the jurisdiction, whichever is greater This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of all the employee s involved EXHIBIT A Resolution No COMMUNITY DEVELOPMENT - RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT 4 GRADING PLAN REVIEW FEES 50 cubic yards (38 2 m or less No fee 51 to 100 cubic yards (40 m to 76 5 m) $2350 101 to 1,000 cubic yards (77 2 m to 764 6 m 3 ) $ 3700 1,001 to 10,000 cubic yards (765 3 m to 7645 5 m 3 ) $ 4925 10,001 100,000 cubic yards (7646 3 m to 76,455 m) $49 25 for the first 10,000 cubic yards (7645 5 m), plus $24 50 for each additional 10,000 cubic yards (7645 5 m) or fraction thereof 100,001 to 200,000 cubic yards (76,456 m to 152,911 $269 75 for the first 100,000 cubic yards (76,455 in) m plus $13 25 for each additional 10,000 cubic yards (7645 5 m) or fraction thereof 200,001 cubic yards (152,912 m) or more $402 25 for the first 200,000 cubic yards (152,911 m), plus $7 25 for each additional 10,000 cubic yards (7645 5 m or fraction thereof Other Fees: Additional plan review required by changes, additions or revisions to approved plans (minimum charge - one -half hour) $50 50 per hour' 'Or the total hourly cost to the jurisdiction, whichever is the greatest This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved GRADING PERMIT FEES' 50 cubic yards (38 2 m or less $2350 51 to 100 cubic yards (40 m to 76 5 m) $3700 101 to 1,000 cubic yards (77 2 m to 764 6 m 3 ) $ 37 00 for the first 100 cubic yards (76 5 m) plus $17 50 for each additional 100 cubic yards (76 5 m or fraction thereof 1,001 to 10,000 cubic yards (765 3 m to 7645 5 m 3 ) $ 194 50 for the first 1,000 cubic yards (764 6 m), plus $14 50 for each additional 1,000 cubic yards (764 6 m) or fraction thereof 10,001 to 100,000 cubic yards (7646 3 m to 76,455 m) $325 00 for the first 10,000 cubic yards (7645 5 m plus $66 00 for each additional 10,000 cubic yards (7645 5 m or fraction thereof 100,001 cubic yards (76,456 m) or more $919 00 for the first 100,000 cubic yards (76,455 m), plus $36 50 for each additional 10,000 cubic yards (7645 5 m) or fraction thereof Other Inspections and Fees: 1 Inspections outside of normal business hours (mtmmum charge - two hours) $50 50 per hour' 2 Re-inspection fees assessed under provisions of this chapter shall be as follows (per inspection) $49 50 per hour' 3 Inspections for which no fee is specifically indicated (minimum charge - one -half hour) $50 50 per hour 'The fee for a grading permit authorizing additional work to that under a valid penrut shall be the difference between the fee paid for the original permit and the fee shown for the entire project 'Or the total hourly cost to the jurisdiction, whichever is the greatest This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved EXHIBIT A Resolution No POLICE DEPARTMENT — RATE TABLE D All Rates Listed Are "Not To Exceed" Fees D. POLICE DEPARTMENT RATE 1. TRAFFIC ACCIDENT REPORTS $1000 2. FINGERPRINTS — l sc Card $1000 Each Additional Card $1000 3. CRIMINAL HISTORY CHECK $1000 4. VERIFICATION LETTER FOR LOST OR STOLEN $800 PROPERTY 5. PHOTO PRINTS Actual Cost of (Per Set When in Possession of the Dept) Processing 6. LICENSES FOR DOGS AND CATS For Each Cat Spayed or Neutered $750 (Upon Proof of Spaying or Neutering) For Each Dog Spayed or Neutered $1250 (Upon Proof of Spaying or Neutering) For Each Cat Not Spayed or Neutered $3750 For Each Dog Not Spayed or Neutered $3750 Senior Permanent Dog/Cat $1250 7. LICENSE FOR CHICKENS For up to five (5) chickens $1250 Senior permanent for up to five (5) chickens $1250 8. ALARM COMPLIANCE FEE 1 st False Alarm in any 1 Quarter $6000 2nd False Alarm in the same Quarter $8000 3rd False Alarm in the same Quarter $16000 or Subsequent Alarms in a Calendar Quarter 9. SERVICE FEE FOR ANTI - HARASSMENT ORDER $5000 10. SERVICE OF ARREST WARRANTS AND SUBPOENAS Arrest Warrant $15 00 plus mileage Subpoena $6 00 plus mileage Preparation of return of service $500 Mileage (for each mile actually and necessarily traveled by a current business member of the Police Department in going to or returning from mileage rate any place of service, or attempted service) allowed by the Internal Revenue Service EXHIBIT A Resolution No FIRE DEPARTMENT — RATE TABLE E All Rates Listed Are "Not To Exceed" Fees E. FIRE DEPARTMENT RATE 1. REGULATORY LICENSE FEES BMC 9 48 Fireworks Stands / Displays $ 1 00/stand/yr BMC 18 06 Ambulance Services Ambulance Inspections $60 /veh 2. AMBULANCE TRANSPORT FEE ALS Residents $550 ALS-2 $650 ALS Non - Residents $650 BLS Residents $425 BLS Non - Residents $500 Mileage $11 00 /mile 3. EMS SERVICE CALL TO ASSISTED LIVING, LONG $100 After first response per TERM CARE AND ADULT CARE FACILITIES quarter 4. RE- INSPECTION FEE $5600 5. HAZARD MATERIALS RESPONSE Rice Hull Ash Actual Cost per Bag Absorbent Pads Actual Cost per Bag 6. STAND -BY -TIME Per crew of 3 $98/hour Fire Engine — Crew of 4 $115/hour 7. ACTIVE FIREFIGHTING Fire Engine Washington Fire Chiefs Published Rate* Aerial Ladder Washington Fire Chiefs Published Rate* 8. SPRINKLER/FIRE ALARM PLANS IFC Rates ** 9. FIRE WATCH $50 00/hour 10. AFTER HOURS INSPECTION Actual Cost 11. RUSH PLAN REVIEW Actual Cost * Washington Fire Chiefs Association Wage & Equipment Rates for the Washington State Fire Service ** International Fire Code EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees F. PARKS AND RECREATION DEPARTMENT NON - RESIDENT FEE - BASE FEE PLUS 25% 1. FACILITY USE RENTAL RATES Facility use policies apply • Appropnate taxes are included in rates unless otherwise noted • Regular Groups (10 or more meetings a year, reserved in advance) may receive a 20% discount on Facility and Park Rental Fees • Non - Profit Groups may receive a 50% Discount on Facility and Park Rental Fees with proof of Non - Profit status (a) SHERIDAN COMMUNITY CENTER — ROOM RENTAL RATES RATE (Group A) NON - COMMERCIAL — Rental Rates Recreation and/or educational purposes only Per hour, two (2) hour minimum Daytime (Monday — Fnday 8 00 AM to 5 00 PM) Lounge $90025 Room A , B /C, Conference Room WgS 00 R eem WC, Genier-ence -Reen� �5 Gym $49-50 Evenings (Monday — Thursday 5 00 PM to 10 00 PM) Lounge $4938 00 Room A B/C $1300 Reem B/G, Conference Room $150050 Gym $250075 Room Package (Lounge & Gym) $3900 Entire building — Up to eight (8) hours* $64-963600 em Friday Evening (5 00 PM to 10 00 PM) & Saturday and Sunday Lounge $260075 Room A B/C $1300 Reem WC, Conference Room $1500 Gym $3150 Room Package (Lounge & Gym) $5000 Entire building — Up to eight (8) hours* $64963600 * Entire building rental for events with 250 or more participants requires additional staff charges at $16 80-50 per hour EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees (a) SHERIDAN COMMUNITY CENTER — ROOM RENTAL RATES RATE (Group B) COMMERCIAL — Rental Rates Recreational and/or educational purposes only Per hour, two (2) hour minimum Lounge $343250 Room A $2500 Room B /C, Conference Room $25 08 Gym $5000 Room Package (Lounge & Gym) $98 00 50 Entire Building - Up to eight (8) hours* $993- 00 1.023 00 * Entire building rental for events with 250 or more participants requires additional staffing fee at $16 00-50 per hour (b) BREMERTON SR. CITIZENS CENTER - ROOM RENTAL RATES (Group A) NON - COMMERCIAL — Rental Rates Per hour, two (2) hour minimum Cardroom/Meetmg Room $ i g 25 00 Main Room $36 75 00 Kitchen $1550 Additional staffing per hour $160050 Entire Facility up to eight (8) hours $0 00 (Grout) B) COMMERCIAL — Rental Rates Per hour, (two ) 2 hour minimum Cardroom/Meetmg Room $37 00 00 Main Room $74-00 Kitchen $3430 00 Additional staffing per hour $160050 Entire Facility — Up to eight (8) hours $300550 00 (e) PARK SHELTERS — RESERVATION FEES Four (4) hour sessions per reservation unless otherwise noted Bremerton residents may reserve park shelters beginning January 1 s ` for the upcoming year Non - resident reservations will be accepted beginning February 1 5 ` (Group A) NON - COMMERCIAL — Rental Rates Blueberry Shelter $3 -0 50 Evergreen Shelter 1 $63 EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees (c) PARK SHELTERS — RESERVATION FEES Evergreen Shelter 2, 3, 5, or 6 $43250 Evergreen Shelter 4 (not reservable, first come first served) no charge Evergreen Amphitheatre with Amplified Sound $157 59 00 Kiwams Park Shelter $4500 Lions Park Shelter 1 $4325 Lions Park Shelter 2 $3150 Matan Park Shelter $5-09 75 Upper NAD $2-5-09 75 Lent Landing Gazebo $34 -59 50 Reserve portion of a park not having a shelter $3150 250 (Group B) COMMERCIAL — Rental Rates Blueberry Shelter $4850 Evergreen Shelter 1 $9425 Evergreen Shelter 2, 3, 5, or 6 $4840 Evergreen Shelter 4 (not reservable) no charge Evergreen Amphitheatre with Amplified Sound $4-89 - 200 00 Kiwams Park Shelter $6750 Lions Park Shelter 1 $65 -09 50 Lions Park Shelter 2 $4850 Matan Park Shelter $3738 50 Upper NAD $38 00 50 Lent Landing Gazebo $4850 Reserve portion of a park not having a shelter $4850 (d) SPECIAL EVENTS, CELEBRATIONS, WEDDINGS Louis Mentor Boardwalk $-249 Other parks Reservation fee + $100 00 (e) ATHLETIC FIELD — RESERVATIONS Per hour unless noted (Group A) NON - COMMERCIAL — Rental Rates $4-92000 (Group B) COMMERCIAL — Rental Rates $384000 Game Fee - Softball $43250 Game Fee - Soccer $5000 (f) BLUEBERRY PARK — P -PATCH ANNUAL RATE Non - commercial gardening only Raised Beds $1000 EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees Seasonal (10 c 10 x 20 Beds $4000 Ye X38 x 30 Beds) $6000 (g) LIONS TENNIS COURT LIGHTS 1 token (1 hour) $200 6 tokens (6 hours) $900 2. PROGRAM FEES & CHARGES RATE (a) NEW PROGRAMS See Section 3, subsection (a) (b) ATHLETIC PROGRAM FEES VOLLEYBALL Co -ed (Fall & Winter) per team $2-7427800 Men and Women (Spring) per team $27427800 Open Gym (Oct —June) per person $9400 BASKETBALL Men's League (Fall & Winter) per team $568577 00 Boy's League (Winter) per team $30031000 Boy's League (Individual Reg) per individual $4000 SOFTBALL Men's-Snrmg„ (Spring) per team $350597 00 Men's- Snnng_ League — Players fee (Spfxng) per player $242400 Spring Co -ed (Spring) per team $42-043500 Spring Sunday Co -ed — Players fee (Spfing) per player $1679 Fall Co -ed League (Fa4) per team $48450000 Fall Co -ed — Players fee f per player W 25 00 Men!&Fall League (Falk) per team $49950000 McW6 - Fall League — Players fee Wa4o per player V8 25 00 TOURNAMENTS (SOFTBALL AND SOCCER) -- INVITATIONAL TOURNAMENTS Lions — One Day $35368 00 Lions — Two Day $5 00 Lions — Three Day $76278500 Pendergast — One Day $46-247600 Pendergast — Two Day $;35757 00 Pendergast — Three Day $893-92000 EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees --STATE TOURNAMENTS Lions — One Day $3M515 00 Lions — Two Day $74-5767 Lions — Three Day $$0893 00 Pendergast — One Day $64-566500 Pendergast — Two Day $86893 00 Pendergast — Three Day $1,94055 00 * Regional and National Tournaments cost to be negotiated depending on field preparation requirements 3. SENIOR CITIZEN CENTER AND RECREATION DIVISION PROGRAMS (a) PROGRAM FEE FORMULAS Except for the Sr Citizens Trip program, participant fees for activities (programs, classes, events, etc ) promoted by the Sr Citizen Center and the Recreation Division are established by the following formulas A Activities when the instructor is on City—payroll *Based on "Not -to- Exceed" rates [(Total class hours including preparation) x (Instructor's hourly wage) x (1 5 Administration factor)] divided by(mmimum # of students per activity)] + (the cost of group supplies divided by minimum # of students) + Cost of individual class supplies, if applicable = Student class fee for City of Bremerton Resident B Activities taught by contracted instruction *Based on "Not -to- Exceed" rates [(Price per student required by the Instructor less class supply fees) x (1 5 Administration factor)] + Class supply fees = Student class fee for City of Bremerton Resident C Non - Resident Fees for Recreational Programs For recreation classes, programs, swim passes and rentals — ranging from $5 00 to $25 00 add on 25% $25 01 to $50 00 add a flat $6 25 $50 01 to $100 00 add a flat $12 50 $100 01 to $200 00 add a flat $25 00 $200 01 + add a flat $50 00 RATE (b) SENIOR CENTER ACTIVITIES (AGE 55 +). Couples Membership is for two people, at least one needs to be 55 or better, who reside at the same address Community Members Memberships are for Senior Living facilities who are interested in purchasing a group of tickets (10, 20 or more) Residency is based on where the Senor Living facility is located Associate Memberships are for those individuals not yet 55 but still would like to participate in the programs, trips and classes offered at the Center EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees Senior Citizen — City Resident annual membership $91000 Senior Citizen — Non - Resident annual membership $4-62000 Senior Center — City Resident Couples annual membership $1450 Senior Center — Non - Resident Couples annual membership $2-93200 Senior Center — City Resident Associate annual membership $1325 Senior Center — Non - Resident Associate annual membership $2650 actual costs (c) SENIOR CENTER TRIPS plus 25% NON - RESIDENT FEE — LISTED RATE PLUS 25% 4. IVY GREEN CEMETERY - FEES AND CHARGES RATE (a) ADULT BURIAL Grave Site $99- 3 1,023 00 Opening/Closing $653677 00 Liner $646665 00 Oversize Liner (if required) $93'963 00 Grave Side Service Preparation (optional) $4-8419000 (b) VETERANS PLOT Grave Site $496511 00 Opening/Closing $329339 00 Liner $323 00 Oversize Liner (if required) $46848200 Grave Side Service Preparation (optional) $9396 00 Stone Marker Setting $359 00 Bronze Marker Setting $4950 00 (c) INFANT BURIAL Infant Plot in Babyland $256264 00 Opening/Closing $400412 00 Liner $2-428900 Grave Side Service Preparation (optional) $4- 84190 00 (d) DISINTERNMENT Removal & opening of new site $4,37508 00 Site Purchase $993 00 Liner $64666500 Removal (only) $903-93000 Cremation Removal $24$225 00 (e) ADDITIONAL BURIAL COSTS 2 hr max $4'8183 00 EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees 4 hour max $34 368 00 (f) LINERS Adult $646665 00 Infant $254289 00 Cremation Vault (2 piece) $439154 00 Oversize Liner (if required) $963 00 (g) OPENING AND CLOSING RATE Adult %P3 77 00 Infant (Babyland) $40041200 Urn Interment (per urn) $43162 00 (h) BURIAL SITES Adult $993 00 Infant (Babyland) $236264 00 Infant (any site not in Babyland) $193 00 0) INURNMENT Vault $-139154 00 Opening/Closing $4-5015400 Grave Side Service Preparation (optional) $4-8419000 Second Right of Inurement $25025800 0) DISURNMENTS Urn $245225 00 (k) RAISE GRAVE $447-15100 (1) MARKER SETTING FEES 5" x 8" bronze plus tax $949200 4 x 12" x 2" x 3" plus tax $909900 8 x 16" x 2" x 3" plus tax $499103 00 10" x 20" x 2" x 3" plus tax $443116 00 12" x 24" x 2" x 3" plus tax $44 5122 00 12" x 24" bronze plus tax $445122 00 12" x 36" x 2" x 3" plus tax $43180 00 14" x 36" x 2" x 3" plus tax $459185 00 EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees 5. GOLD A40UNT-AIN GOLF COMPLEX (priees do not inelude sales taft) Golf Senior- Rates apply at age-62r. (a) CASCADE COURSE $4200 `j' Wee! $33 00 WeekeaWl4ekday 18 Heles (Note 1) $4600 Wee! $370 Weekday 9 Holes (Men T4v&r-s) Q' 2 Twilight Weekday (Men Thws) $2600 Twilight Week&444ehday League Rate (Not gat, Stin or- 14ekday) Q2 $366 T,....e« 18 dole !M Th \ Q� Q �1 Z !00 $2500 All Day Monday Tuesday $6 400 Seni o �� e (Note 2) $Q�2�3�0� V 00 Regular- 10 Round Puneh Card $29000 junter- 10 Round Puneh Card $9000 Monthly T-wiligbt Pass (7 days a week) P09 00 $ 4 , 00000 Corporate Pass wv power cart (Men 'r- 9€€eer-s) (Note 2) $5,008 -A8 W 00 S h o t...... T .... ....,, «t !AT .t T 1~meee,7 19 Hole Green F4 .�uvcb M i l i t ary P ass (100) tie t.,.. $2 � 300 00 3 (b) OLYMPIC COURSE PATE $G Weekday 18 Heles (Men T4mfs) $48 Weekday 1pf $3700 $6600 Wee! $46-00 Weekd O Hele ( Th. F $27 00 EXHIBIT A 3� 66 Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees -00 $2000 Twilight Weekday (Men T4 m-F-0 Twilight Weeken"eliday 00 9 90 beape Rate (Not Sat, Sun or- 14011day) $2000 Senior- 18 Holes (Men Thuv4 $42 e, 900 FaFmly golf (tip to 4) (Note-4) 5-09 All day Monday Tuesday $6400 Shotgun T-eumament (Not Te Eiieeed 18 Hele Green Fee) (Note 1) $00-09 Week end $59-00 Weekday $3600 V 3 Annual Pass Sm& $2,03000 $3,36 -09 $x,890 -09 PkF- $209 -09 Afmiial Pass junter- (Men T-hufs) (Note -3) $499 - 00 Afmmml Pass Sr- Single (Not Sat, Stm or- 14ekday $ 370 Ameal Pass Sr- Couple R�et Sat, Sun or- Holiday 69 $875 -99 $A -59-99 ' $1 1, 559-99 Sefm Aimual Sr Single first 1 7� of yeaf Riot Sat Sum or- Holiday) $60000 Sefr Annual Sr- Singlesesend 1z of year- (Not Sat, Sun or- Holiday) $650 -00 Holiday) $1,00000 Stin or - Holiday � X039 -09 1 Satwday, Sunday of: 14ohday (May September- Net te Erceeed Rate) 2 May be used for- twilight any day ef the week ifteluding helidays- 3 Ffiday Sunday and Holidays depending en avatlabthty- 5 r,,.,o th-ve September- runte..s may ..1....1., a fi e .. 1 1 nn al m on e e k ea d ds; ama 1,,,1.,1 6 Ages 67 .Q. ,,... with t e - US 01.,.1,7 -4$ 1 4 000 D!" W 7138 070 7 A r-edueed rate, not less than the ewmn4 twilight r-me, may be effer-ed with the approval eAhe v , EXHIBIT A Resolution No PARKS RECREATION DEPT — RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No PUBLIC WORKS AND UTILITIES — RATE TABLE G All Rates Listed Are "Not To Exceed" Fees G. PUBLIC WORKS AND UTILITIES DEPARTMENT RATE 1. RIGHT -OF WAY USE PERMITS FEES Type A (Short Term Use) Regular (Misc $16000 Construction) Dumpster — Individual personal use No Charge Dumpster — Commercial/Construction $6000 Type B (Disturbance of ROW) Sidewalk Repairs (2 inspections) $5500 Driveway, Transverse Street Patch and Spot $16000 Patches (2 inspections) Frontage Improvements (curb, gutter, sidewalk, $3 15 1ft with a $160 00 minimum illumination, etc ), Longitudinal Street Patch, and Utility Installation New Street $5 25/ft with a $625 00 minimum Water & Sewer Mains & Laterals (ROW Permit) (2 $16000 inspections) Additional Inspection $5000 Type C (Long Term Use) Application and Processing $10000 Use longer than one year 1/10 adjommg land value set in the County Assessor's records per square foot of impacted ROW annually with a $100 minimum Use shorter than one year 1150 adjoining land value set in the County Assessor's records per square foot of impacted ROW monthly with a $100 minimum Type D Regular (Franchised Utility Routine Maintenance) $10000 Plan Reviews $0 25 /foot of improvement with $105 minimum Additional Work $45 00/hour + equipment charges 2. RIGHT -OF -WAY VACATION $57500 3. TELECOM MASTER PERMIT FEE $525 00 /one time 4. TELECOM LICENSE FEE $210 00 /one time 5. DRIVEWAY DECOMMISSIONING $27000 AND RECOMMISSIONING FEE EXHIBIT A Resolution No PUBLIC WORKS AND UTILITIES — RATE TABLE G All Rates Listed Are "Not To Exceed" Fees RATE 6. BMC 10.24 HOUSEMOVING /OVERSIZE LOADS $600 +$65hmle to 10 of a mile EXHIBIT A Resolution No BREMERTON KITSAP ACCESS TELEVISION (BKAT) — RATE TABLE H All Rates Listed are "Not To Exceed" Fees H. BREMERTON KITSAP ACCESS TELEVISION (BKAT) 1. Pre - production RATE Equipment Consultation $100 /per hour Program Development $100 /per hour Research $100 /per hour Location $100 /per hour Scripting $100 /per hour Graphics Development $100 /per hour 2. EQUIPMENT STUDIO $25.00 per hour (minimum 2 hours) 3. PRODUCTION* Set -up $100 per hour Production $100 /per hour Breakdown $100 /per hour *minimum of 2 hours for any productions 4. Post Production Edit $100 per hour Voice Over $100 per hour 5. Trainin Studio $100 3 hours of camera and director training — max 4 people Edit $50 5 hours of Apple Final Cut 6. Miscellaneous Equipment Installation $100 per hour Equipment Troubleshooting and Repair $100 per hour DVD Duplication $35 84 (includes tax) 7. Membership (Annual) Individual Resident $2500 Individual Non - Resident $3500 Organization — Resident $7500 Organization — Non - Resident $10000 EXHIBIT A Resolution No BREMERTON KITSAP ACCESS TELEVISION (BKAT) — RATE TABLE H All Rates Listed are "Not To Exceed" Fees 8. Rental Rate Field Equipment Tripod $2500 Per Hour ($300 00 Deposit) Light Kit $5000 Per Hour ($300 00 Deposit) Lavalier Mic $2000 Per Hour ($300 00 Deposit) Video Monitor $2500 Per Hour ($300 00 Deposit) Studio Equipment Studio $5000 Per Hour ($1,000 00 Deposit) Lights $2500 Control Room $5000 Wireless mics (4) $2500 Teleprompter $2500 Misc $10 ea Tables, chairs, easels, table cloths 9. Public Service Announcement with voice over A public service announcement $2500 Proof of Special Events with voice over is an option as part Permit also required of the Special Event Permit through the City The public service announcement will air on BKAT for a minimum of two weeks EXHIBIT A Resolution No AGENDA BILL CITY OF BREMERTON CITY COUNCIL ......................................................... ............................... SUBJECT: Ordinance No 5201 amending Study Session Date 11128/12 Section 3 86 200 of the Bremerton Municipal COUNCIL MEETING Date 12/05/12 Code relating to business and occupation Department Finance taxes, and further amending Chapter 3 48 Presenter Becky Hasart Phone 473 -5722 SUMMARY: The City of Bremerton is one of 39 cities imposing a business and occupation tax As such, we have an obligation to insure our model tax ordinance remains up to date The model B &O tax ordinance is reviewed every four years to insure our provisions remain current with RCW The attached updates our code accordingly Also attached with the agenda item is a fact sheet prepared by the Association of Washington Cities outlining the changes being made to the model B &O ordinance The two mayor changes are related to "digital goods" and confidentiality of tax returns ATTACHMENTS: AWC fact sheet, Ordinance No 5201 FISCAL IMPACTS (Include Budgeted Amount) This change is a housekeeping measure There is no fiscal impact STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No 5201 amending Section 3 86 200 of the BMC entitled "Public Disclosure — Confidentiality — Information Sharing" relating to business and occupation taxes, and further amending Chapter 3 48 of the BMC entitled "Business and Occupation Taxes " COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 s Updates to City Business & Occupation (B &O) Tax — Must be Adopted by 39 B &O Tax Cities by January 1, 2013 What is changing? In 2003, the Legislature enacted RCW Chapter 35.102, which required cities with local B &O taxes to Implement a modified B &O tax model ordinance with certain mandatory provisions. Changes to the model ordinance mandatory provisions must be adopted by cities with the same effective date: January 1, 2013. A city workgroup met over the summer to revise the model to include changes to RCW 35.102 and other changes in state law since the model was last updated to implement allocation and apportionment provisions in 2008. There are six changes to the model ordinance and administrative provisions: 1. Digital Goods Definitions & Apportionment —Adopt changes required by HB 2620, which amended apportionment in RCW 35 102 130; mirrors changes made to state law in 2009 with adoption of HB 2075 Digital Goods legislation required by Streamlined Sales Tax changes separating digital books, music, and videos goods from their tangible equivalents. • 030 Definitions added for digital automated service and digital products • 030 Added digital goods references to other mandatory definitions. gross proceeds of sales, manufacture, retail sale, wholesale sale • .077 Updates apportionment for digital goods as a separate classification to mirror treatment under state law — 5 steps in order of priority to determine where delivery to buyer occurs 2. Board of Director licensing and tax — 030 engaging in business definitions clarification board meeting nexus exclusion applies to the corporation, not the individual board members or consultants attending meetings. 3. "Super Nexus" provision repeal — ( 060) reflects requirements that allocation and apportionment provisions in RCW 35 102.130 (.077 of model ordinance) should be used for contracts with the city executed after January 1, 2008 4. Insurance business preemption — (.090) moves exemption from Guidelines to Model Ordinance and updates language to reflect preemption of taxation of insurers /appointed insurance producers in RCW 48.14.020(4) and repeal of RCW 48.17 010 -020. • RCW 48.14.020(4)• The state does hereby preempt the field of imposing excise or privilege taxes upon insurers or their appointed insurance producers, other than title insurers, and no county, city, town or other municipal subdivision shall have the right to impose any such taxes upon such insurers or these insurance producers. S. First mortaaae deduction — (.100) updates language to refer to state required tax treatment in RCW 82.14A and moves provision from Guidelines to Model Ordinance. 6. Confidentiality — (Administrative Provisions 200) Adopts language of state confidentiality provision RCW 82.32.330, reflecting option that cities may adopt under RCW 35.102.145. Background on the B &O Tax Model Ordinance: There are currently 39 cities that levy a B &O tax on businesses which is measured by a percentage of the firm's gross receipts 2000: A group of cities drafted a model ordinance to make local B &O tax provisions more uniform. 2003 The Legislature enacted RCW Chapter 35.102, which required cities with local B &O taxes to. • implement a modified B &O tax model ordinance with certain mandatory provisions by December 31, 2004. ■ $20,000 minimum threshold ■ Specific definitions • Penalty and interest provisions R Payment periods • Ensure that double taxation could not occur by implementing mandatory credits; and • Adopt specific allocation and apportionment of revenues, based on the classification of the activity, effective January 1, 2008. • Limit updates to the model to every four years, except to comply with state law changes 2008 The model ordinance was last updated • Adopting specific allocation and apportionment of revenues, based on the classification of the activity (RCW35 102 130) • Exempting newspaper and publishing businesses from apportionment requirements (RCW 35 102 150) • Updates to penalties and interest provisions in administrative provisions — linked to RCW to accommodate any future changes. For more information: AWC's website: http / /www awcnet ora/ LesislativeAdvocacy/ LeeislativeBulletin /MunicipalFinance /MunicipalBO aspx AWC is interested in keeping this model ordinance current and relevant, so it provides good guidance for cities. Your comments and feedback are welcome Contact. Sheila Gall sheilag @awcnet onz ORDINANCE NO 5010 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 3 86 200 of the Bremerton Municipal Code entitled "Public Disclosure - Confidentiality - Information Sharing relating to business and occupation taxes, and further amending Chapter 3 48 of the Bremerton Municipal Code entitled `Business and Occupation Taxes " WHEREAS, changes were recently made to the business & occupation tax model ordinance which incorporates amendments to state law that were adopted since the model code was last updated in 2008, and WHEREAS, the City Council desires to amend its business and occupation tax code and related administrative provisions to incorporate into the city's business & occupation code the changes to the business & occupation tax model ordinance, and to make other related amendments, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION]. Section 3 86 200 of the Bremerton Municipal Code entitled "Public Disclosure - Confidentiality - Information Sharing" is hereby amended to read as follows 3.86.200 PUBLIC DISCLOSURE - CONFIDENTIALITY - INFORMATION SHARING. (1) For purposes of this section, unless ^ differ-°"t meaning is ele rl y establishe ^e�t-,- following definitions apply (a) "Disclose" means to make known to any person in any manner whatever, a return or tax information (b) "Tax information" means (i) A taxpayer's identity, (ii) The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over assessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, or (iv) Other data received by, recorded by, prepared by, or provided to the Dir-eete - City with respect to the determination or the existence, or possible existence, of liability, or the amount thereof, of a person under the City's tax codes defined in Section 3 86 015 BMC above for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section Nothing in this chapter requires any person possessing data, 1 B & 0 Tax Code Updates 2012 material, or documents made confidential and pnvileged by this section to delete information from such data, matenal or documents so as to permit its disclosure (c) "City agency" means every City office, department, division, bureau, board, commission, or other City agency (d) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer (2) Returns and tax information are confidential and pnvileged, and except as authonzed by this section, neither the Director nor any other person may disclose any return or tax information (3) This section does not prohibit the Director from (a) Disclosing such return or tax mfonnation in a civil or cnminal judicial proceeding or an administrative proceeding (1) In respect of any tax imposed under City's tax codes defined in Section 3 86 015 BMC above if the taxpayer or its officer or other person liable under this title is a party in the proceeding, or 60 In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding_ (b) Disclosing, subject to such requirements and conditions as the Director prescnbes by rules adopted pursuant to Section 3 86 160 BMC, such return or tax information regarding _ a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for infonnation or assistance made by the taxpayer to such other person However, tax information not received from the taxpayer must not be so disclosed if the Director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or cnminal liability of the taxpayer or another person, or that such disclosure would identify a confidential infonnant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of mfonnation with other ,government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court, (c) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof, (d) Disclosing such return or tax information, for official purposes only, to the Mayor or City Attorney, or to any City agency, or to any member of the City Council or their authonzed designees dealing with matters of taxation, revenue, trade, commerce, the control of indus , or the professions, (e) Permitting the City's records to be audited and examined by the proper state officer, his or her agents and employees, (fl Disclosing any such return or tax information to a peace officer as defined in RCW 9A 04 110 or prosecuting g ttomey for official purposes The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of cnminal tax enforcement A peace officer or prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information on ig nally was sought or where otherwise allowed to be disclosed under this Section, 2 B & 0 Tax Code Updates 2012 (g) Disclosing any such return or tax information to the proper officer of the Internal Revenue Service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar pnvileges to the proper officers of the City, (h) Disclosing any such return or tax information to the United States Department of Justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland secunty, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury and the United States department of transportation, or any authonzed representative of these federal agencies or their successors, for official purposes, (i) Publishing or otherwise disclosing the text of a wntten determination designated y the Director as a precedent pursuant to RCW 82 32 410, (1) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entily We, business address, mailing address, revenue tax registration numbers and the active /closed status of such registrations, state or local business license registration identification and the active /closed status and effective dates of such licenses, reseller pennit numbers and the expiration date and status of such permits, North Amencan industry classification system or standard industnal classification code of a taxpayer, and the dates of opening and closing of business Except that this subsection may not be construed as ig ving authonty to the City or any recipient to give, sell, or provide access to any list of taxpayers for any commercial pur ose, (k) Disclosing such return or tax mfonnation that is also maintained by another Washington state or local govenunental agency as sapublic record available for inspection and cop ijng under the provisions of chapter 42 56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure, (1) Disclosing such return or tax infonnation to the United States department of agriculture, or successor department or agency, for the limited purpose of investigating stamp fraud by retailers, (m) Disclosing to a financial institution, escrow company, or title compan yin connection with specific real property that is the subject of a real estate transaction, current amounts due the Clsty for a filed tax warrant, judgment, or lien against the real property, (n) Disclosing to a person against whom the department has asserted liability as a successor under Section 3 86 130 BMC return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded, (o) Disclosing real estate excise tax affidavit fonns filed under Chapter 3 84 BMC in the possession of the City, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax, (p) Disclosing such return or tax mfonnation to the court or heanng examiner in respect to the Ci 's a plication for a subpoena if there is probable cause to believe that the records in possession of a third party will aid the Director in connection with its official duties under this title or a civil or cnmmal investigation (4_) (a) The Director may disclose return or taxpayer information to a person under investigation or dunng any court or administrative proceeding against a person under investigation as provided in this subsection, BMC 3 86 200(4) The disclosure must be in 3 B & 0 Tax Code Updates 2012 connection with the department's official duties under this Chapter, or a civil or cnmmal investigation The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable /payable ledgers, eg neral)oumals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents (b) Before disclosure of any tax return or tax infonnation under this subsection, BMC 3 86 200(4), the Director must, through wntten correspondence, inform the person in possession of the data, materials, or documents to be disclosed The correspondence must clearly identify the data, matenals, or documents to be disclosed The Director may not disclose any tax return or tax information under this subsection, BMC 3 86 200(4), until the time penod allowed in (c) below of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection (c ) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the wntten request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief The court must limit or deny the request of the Director if the court determines that (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive, 60 The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake, or (iii) The data, materials, or documents sought for disclosure contain trade secret infonnation that, if disclosed, could harm the petitioner (d) The Director must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed (e ) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section (5) Service of a subpoena issued by the court does not constitute a disclosure of return or tax information under this section Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the may disclose the existence or content of the subpoena to that person's legal counsel (6) Any person acquinng knowledge y return or tax information in the course of his or her employment with the City and any person acquinng knowledge of any return or tax infonnation as provided under subsection (3) (d), (e), (f), (gbh), 6), or (k) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax infonnation under the provisions of this section, is guilty of a misdemeanor If the person guilty of such violation is an officer or employee of the Ci1y, such person must forfeit 4 B & 0 Tax Code Updates 2012 such office or employment and is incapable of holding any public office or employment in the City for a period of two years thereafter 42 17 RGW er- any other- law prohibiting diselesuFe (a) The Mayer-, member-s of the City Gouned, City Attemey, City Gler-k, e , (b) Any ageney or- effleer- of the United States of Ameftea, the State of Washtat,Aea, er- a tax depaftment of any state, eeunty, etty or- town, provided, that the ageney-or- effieer- I I intially similar- privileges te the City, and f6t4her- pr-evided, that the agene any other- ageney in any eivil or- efimmal aetion involving any heense, tax, inter-est, or- penalty (5) A per-son diselesing ta* infefmatten to a per-son not entitled te r-eeeive that SECTION 2. Chapter 3 48 of the Bremerton Municipal Code entitled `Business and Occupation Taxes" is hereby amended to read as follows Chapter 3.48 BUSINESS AND OCCUPATION TAXES 3.48.020 EXERCISE OF REVENUE LICENSE POWER. The provisions of this chapter shall be deemed an exercise of the power of the City to license and/or tax for revenue The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code 3.48.025 BUSINESS LICENSE — REQUIRED. It is unlawful for any person to engage in business in the City without having first obtained a business license pursuant to Chapter 5 02 BMC 3.48.028 ADMINISTRATIVE PROVISIONS. The provisions contained in Chapter 3 86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein 3.48.030 DEFINITIONS. In construing the provisions of this chapter, the following definitions shall be applied Words in the singular number shall include the plural, and the plural shall include the singular "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. 5 B & 0 Tax Code Updates 2012 (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to a product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15 83 -480 85 020 plantation Christmas trees, turf, or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15 85 020'' 93 480, or a bird, or insect, or the substances obtained from such an animal "Agricultural product" does not include animals intended to be pets "Artistic or cultural organization." As used in this chapter (1) The term "artistic or cultural organization" means an organization which is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (10) of this definition, for viewing or attendance by the general public (2) The organization must be a not - for - profit corporation under Chapter 24 03 RCW (3) The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation sole under Chapter 24 12 RCW (4) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws (5) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the State (6) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a nonprofit organization, association, or corporation which also would be entitled to the exemption (7) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation (8) The amounts received that qualify for exemption must be used for the activities for which the exemption is granted (9) Services must be available regardless of race, color, national origin, ancestry, religion, age, sex, marital status, sexual orientation, Vietnam or disabled veteran status, or the presence of any mental or physical disability (10) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums, (b) A musical or dramatic performance or series of performances, or (c) An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business 6 B & 0 Tax Code Updates 2012 "Cash discount" means a deduction from the invoiced amount allowed by the seller if the bill is paid within a certain time period or before a specified date "City" means City of Bremerton, Washington "Commercial or industrial use" means the following uses of products, including by- products, by the extractor or manufacturer thereof (1) Any use as a consumer, (2) Any use in the manufacturing of products including articles, substances or commodities "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made "Consumer" means the following (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of (a) Resale as tangible or intangible personal property in the regular course of business, (b) Incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers, (c) Incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product, or (d) Consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon, (2) Any person engaged in any business activity taxable under BMC 3 48 050(1)(g), (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business, (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in this section other than for resale in the regular course of business, (5) Any person who is an end user of software, (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly owned street, place, road, highway, easement, nght -of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right -of -way of a publicly owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly owned mass public transportation terminal or parking facility, 7 B & 0 Tax Code Updates 2012 (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business, (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business, (9) Any person engaged in government contracting Any such person shall be a consumer within the meaning of this definition in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person Nothing contained in this or any other subsection of this definition shall be construed to modify any other definition of "consumer " "Deficiency" means the amount of tax imposed by law less any tax reported by the taxpayer on a tax return "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative Delivery to an employee of a buyer is considered delivery to the buyer Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the property or exercises dominion and control over the property "Dominion and control" means the buyer has the ability to put the property to the buyer's own purposes It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property Neither a shipping company nor a seller can serve as a buyer's representative It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property Delivery terms and other provisions of the Uniform Commercial Code (RCW Title 62A) do not determine when or where delivery of tangible personal property occurs for purposes of taxation "Digital automated service," "digital code," and "digital goods" have the same meaning, as in RCW 82 04 192 "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82 04 050(2 )(g) and ( "Director" means the Director of Financial Services of the City or any officer, agent or employee of the City designated to act on the Director's behalf "Eligible gross receipts tax" means a tax which (1) Is imposed on the act or privilege of engaging in business activities within BMC 3 48 050, and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax, and (3) Is not, pursuant to law or custom, separately stated from the sales price, and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and 8 B & 0 Tax Code Updates 2012 (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non -local jurisdiction above the County level "Engaging in business," "nexus." (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business (2) This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de mimmis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1) of this definition If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law (3) Without being all inclusive, any one (1) of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license pursuant to Chapter 5 02 BMC (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City (c) Soliciting sales (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf (f) Installing, constructing, or supervising installation or construction of real or tangible personal property (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements (h) Collecting current or delinquent accounts (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials 0) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, and veterinarians 9 B & 0 Tax Code Updates 2012 (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings (m) Training or recruiting employees, agents, representatives, independent contractors, brokers or others, domiciled or operating on a fob in the City, acting on its behalf, or for customers or potential customers (n) Investigating, resolving, or otherwise assisting in resolving customer complaints (o) In -store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place (p) Except as provided in subsection (5) of this definition, delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf _( or- exe6tittng a Eentmet with the r ' + �r�y, inzJpeett o'°c -of wheth of business is withm or- withetit the City (4) Not Engaging in Business If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, that person is not engaging in business and therefore is not required to register and obtain a City business license pursuant to Chapter 5 02 BMC or pay City business and occupation taxes pursuant to this chapter (a) Meeting with suppliers of goods and services as a customer (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf (d) Renting tangible or intangible property as a customer when the property is not used in the City (e) Attending, but not participating in, a trade show or multiple vendor events Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances (f) Conducting advertising through the mail (g) Soliciting sales by phone from a location outside the City (h) Providing language interpretive services to the Bremerton Municipal Court (5) A business located outside the City merely delivering goods into the City by common carrier or other means, including use of its own vehicles, is not required to register and obtain a business license, provided, that it engages in no other business activities in the City Such business activities do not include those in subsection (4) of this definition (6) "Nexus " A person has created nexus with the City if, whether itself or by its employees, agents, representatives, independent contractors, brokers or others acting on its behalf, it (a) Is physically present in the City, (b) Endeavors to maintain a share of the market within the City, or (c) Avails itself of the economic benefits of the City The City expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington Nexus is presumed to continue as long as the 10 B & 0 Tax Code Updates 2012 taxpayer benefits from the activity that constituted the original nexus - generating contact or subsequent contacts "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product, or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products, or takes fish, or takes, cultivates, or raises shellfish, or other sea or inland water foods or products "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others, persons cultivating or raising fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession, or persons who fell, cut, or take plantation Christmas trees from the person's own land or from land in which the person has a present right of possession, or persons meeting the definition of "farmer " "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber "Gross income of the business" means the value proceeding or accruing by reason of the business activity engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discounts, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discounts, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discounts paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses "In this City" or "within this City" includes all federal areas lying within the corporate City limits of the City "Janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery The term does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal, sandblasting, or cleanup related to construction activities 11 B & 0 Tax Code Updates 2012 "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty (20) percent of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire and not a manufacturer A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include (a) The production of special -made or custom -made articles, (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician, (c) Crushing and/or blending of rock, sand, stone, gravel, or ore, and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification "Newspaper," "magazine," "periodical." (1) "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind (2) "Magazine" or "periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication Any publication meeting this definition qualifies regardless of its content "Nonprofit corporation or nonprofit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended Where the term "nonprofit organization" is used, it is meant to include a nonprofit corporation "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over 12 B & 0 Tax Code Updates 2012 which the person exercises legal dominion and control The regular business of the person is presumed conducted at a location (1) Whose address the person uses as its business mailing address, (2) Containing a telephone line listed in a public telephone directory or other similar publication under the business name, (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means, and (4) Where the person is required to obtain any appropriate State and local business license or registration unless they are exempted by law from such requirement A vehicle such as a pick -up, van, truck, boat or other motor vehicle is not an office or place of business A post office box is not an office or place of business If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of business above If a person has no office or place of business, the person's home or apartment within the City will be deemed the place of business "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co- partnership, point venture, club, company, point stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof "Port District" means a port district as defined in Chapter 53 04 RCW "Precious metal bullion," "monetized bullion." "Precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this State, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty (20) percent or more of the total value of all materials or ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire "Product," "by- product." (1) "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort (2) "By- product" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities 13 B & 0 Tax Code Updates 2012 "Reporting period" means (1) A one (1) month period beginning the first day of each calendar month (monthly), or (2) A three (3) month period beginning the first day of January, April, July or October of each year (quarterly), or (3) A twelve (12) month period beginning the first day of January of each year (annual) "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee dumping, ski lifts and tows, basketball, racquetball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers Amusement and recreation services also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons, (2) Abstract, title insurance, and escrow services, (3) Credit bureau services, (4) Automobile parking and storage garage services, (5) Landscape maintenance and horticultural services but excluding (a) horticultural services provided to farmers and (b) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility, (6) Service charges associated with tickets to professional sporting events, (7) The following personal services physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services, and (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date "Royalties" means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service " It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not 14 B & 0 Tax Code Updates 2012 (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82 04 470 and who (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person, or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale, or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon, or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82 04 065 The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in subsection (1)(a), (b), (c), (d), or (e) of this definition following such use, or (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (8) of this definition, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under BMC 3 48 050(1)(g) (3) "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin- operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including 15 B & 0 Tax Code Updates 2012 the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture, (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner, (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services, which is taxed as a service in this chapter, (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under Chapter 82 16 RCW, (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one (1) month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same For the purposes of this subsection, it shall be presumed that the sale of and charge made for the f imishmg of lodging for a continuous period of one (1) month or more to a person is a rental or lease of real property and not a mere license to enjoy the same, (a) The installing, repairing, altering, or improving of digital goods for consumers, (gh) The sale of or charge made for tangible personal property, labor and services to persons taxable under subsections (3)(a), (b), (c), (d), (e), md-(f) and of this definition when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption Nothing contained in this subsection shall be construed to modify subsection (1) of this definition and nothing contained in subsection (1) of this definition shall be construed to modify this subsection (4) "Sale at retail' or "retail sale" shall also include the providing of competitive telephone service to consumers (5) "Sale at retail' or "retail sale" shall also include_ (a )- the sale of eanned- prewntten software other than a sale to a person who presents a resale certificate under RCW 82 04 470, regardless of the method of delivery to the end user, For purposes of this subsection, the sale of the sale of prewntten computer software includes the sale of or charge made for a key or an enabling or activation code where the key or code is required to activate prewrtten computer software and put the software into use There is no separate sale of the key or code from the prewntten computer software, regardless of how the sale may characterized by the vendor or by the purchaser For purposes of this subsection the term "sale at retail' or "retail sale" does not include the sale of or charge made for- 16 B & 0 Tax Code Updates 2012 (i) Custom software, or (n) The customization of prewritten software (b) the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third pa , regardless of whether the charge for the service is on a per use, ep r user, per license, subscription, or some other basis This also includes the right to access and use prewritten software to perform data processing_ For purposes of this subsection, subsection (5)(b), "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information Data processing includes check processing, image processing, form processing survey processing, payroll processing, c_ laim processing, and similar activities (6) "Sale at retail' or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right -of -way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the State, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind (public road construction) (7) "Sale at retail' or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to Chapter 35 82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting) (8) "Sale at retail' or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement (9) "Sale at retail' or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by- products of weapons production and nuclear research and development (This is reported under the service or other classification ) (10) "Sale at retail' or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action (This is reported under the service and other classification ) (11) "Sale at retail' or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services 17 B & 0 Tax Code Updates 2012 (a) Sales in which the seller has granted the purchaser the right of permanent use, (b) Sales in which the seller has granted the purchaser a right of use that is less than permanent, (c) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale, and (d) Sales in which the purchaser is obligated to make continued payment as a condition of the sale A retail sale of digital goods, digital codes, or digital automated services under this subsection, subsection (11), includes any services provided by the seller exclusively in connection with the di igtal oog ds, digital codes, or digital automated services, whether or not a separate charge is made for such services For purposes of this subsection, subsection (11), "permanent" means perpetual or for an indefinite or unspecified length of time A right of permanent use is presumed to have been granted unless the ajzreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent (12) "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or mprovingof digital goods for consumers "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property digital goods, digital codes, digital automated services, prewritten computer software, or the services described in subsection 5(b) which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale when rendered to or for consumers "Sale at wholesale" also includes the sale of telephone business to another telecommunications company as defined in RCW 80 04 010 for the purpose of resale, as contemplated by RCW 35 21 715 "Services" means any business activity other than or in addition to those defined in this section "Software," "canned software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Canned software" means software that is created for sale to more than one (1) person For purposes of this chapter, canned software is deemed to be tangible personal property regardless of the method of delivery tangible media (e g , disk or installed on hardware) or intangible (e g , electronically over telecommunications paths) (2) "Custom software" means software created for a single person (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation Customization of canned software does not change the underlying character or taxability of the original canned software (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights ansmg from copyrights, patents, and trade secret laws, that are owned or are 18 B & 0 Tax Code Updates 2012 held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one (1) or more computers or pieces of computer- related peripheral equipment, or any combination thereof, to perform a task or set of tasks "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer All software is classified as either canned or custom "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor "Tax year" or "taxable year" means the calendar year "Taxpayer" means any person, as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the State and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for course work successfully completed through the educational program, or an approved branch campus of a foreign degree - granting institution in compliance with Chapter 28B 90 RCW, and in accordance with RCW 82 04 4332 or defined as a degree - granting institution under RCW 28B 85 010(3) and accredited by an accrediting association recognized by the United States Secretary of Education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions "Value of products." (1) The value of products, including by- products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by- products by the seller (2) Where such products, including by- products, are extracted or manufactured for commercial or industrial use, and where such products, including by- products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale, the value shall correspond as nearly as possible to the gross proceeds from sales in this State of similar products of like quality and character, and in 19 B & 0 Tax Code Updates 2012 similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis In such cases, there shall be included every item of cost attributable to the particular article or articles extracted or manufactured, including direct and indirect overhead costs The Director may prescribe rules for the purpose of ascertaining such values (3) Notwithstanding subsection (2) of this definition, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale, or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification 3.48.040 AGENCY — SALES AND SERVICES BY AGENT, CONSIGNEE, BAILEE, FACTOR OR AUCTIONEER. (1) Sales in Own Name — Sales or Purchases as Agent Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person's own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with (a) The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made (b) The books and records show the amount of the principal's gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement (c) No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales (d) Bulk goods sold or purchased on behalf of a principal must not be co- mingled with goods belonging to another principal or lose their identity as belonging to the particular principal Sales or purchases of any goods which have been co- mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales 20 B & 0 Tax Code Updates 2012 (2) If the above requirements are not met, the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer (3) Services in Own Name — Procuring Services as Agent For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with (a) The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made (b) The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on any of the agent's books and records Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement 3.48.050 IMPOSITION OF THE TAX — TAX OR FEE LEVIED. (1) Imposition of the Tax — Tax or Fee Levied Except as provided in subsection (2) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by- products, as the case may be, as follows (a) Extractor Upon every person engaging within the City in business as an extractor, as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by- products, extracted for sale or for commercial or industrial use, multiplied by the rate of one and six- tenths of one percent (0 0016) The measure of the tax is the value of the products, including by- products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City (b) Manufacturer Upon every person engaging within the City in business as a manufacturer, as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by- products, manufactured, multiplied by the rate of one and six- tenths of one percent (0 0016) The measure of the tax is the value of the products, including by- products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City (c) Wholesale Upon every person engaging within the City in the business of making sales at wholesale, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and six - tenths of one percent (0 00 16) 21 B & 0 Tax Code Updates 2012 (d) Retail Upon every person engaging within the City in the business of making sales at retail, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and one - quarter of one percent (0 00125) (e) Printing and Publishing Upon every person engaging within the City in the business of (i) printing, (u) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (iii) publishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire, as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one and nine - tenths of one percent (0 00 19) (f) Retail Service Upon every person engaging within the City in the business of making sales of retail services, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of two- tenths of one percent (0 002) (g) Service Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections, as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of two- tenths of one percent (0 002) This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail or a sale at wholesale or a retail service (2) Tax Exemption (a) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by- products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than sixty thousand dollars ($60,000) ( "Tax Exemption ") Persons with gross income exceeding sixty thousand dollars ($60,000) per year shall be taxed only on the amount of gross income exceeding sixty thousand dollars ($60,000) per year (b) Beginning on January 1, 2013 and each year thereafter, the Tax Exemption set forth in subsection shall be increased by an additional twenty thousand dollars ($20,000 ") for each year as follows Year 2013 - the Tax Exemption shall be $80,000 Year 2014 - the Tax Exemption shall be $100,000 - Year 2015 - the Tax Exemption shall be $120,000 Year 2016 - the Tax Exemption shall be $140,000 This formula for the Tax Exemption shall continue until no taxes are due to be received by the City in any tax year at which time the business and occupation tax shall terminate, unless the formula is modified as set forth in subsection (2)(c) below (c) The tax reduction formula in subsection (2)(b) above may be, (i) Accelerated at any time, (n) Stayed for a period of time as determined by the City Council upon findings by the City Council that fiscal and budget conditions of the City necessitate a stay of the tax reduction, or 22 B & 0 Tax Code Updates 2012 (iii) The business and occupation tax is terminated by ordinance adopted by the City Council The actions by City Council to accelerate or stay implementation of the tax reduction is subsections 2(b)(1) and 2(b)(ii) above may be made by motion or other action of the City Council (3) Job Credits It is the intent of the City Council to encourage growth and attract new business to the City To that end, the City Council finds that an incentive measured by a business's growth in jobs is a meaningful method of attracting and retaining such businesses Therefore, the incentive in this section is specifically targeted at new full -time positions A basic credit is made available to all businesses located in the City (a) Subject to the limits in this section, an eligible person is allowed a credit against the tax due under this chapter The credit is based on a qualified employment position located within the City (1) The credit shall be five hundred dollars ($500 00) for each qualified employment position within the City, which positions were created on or after January 1, 2007, the "effective date " A credit is earned for the calendar year in which the employee is hired to fill the position, plus the four (4) subsequent consecutive years, if the position, along with the company's increased workforce of eligible persons, is maintained during the entire period a Credit may not be taken for hiring persons into positions existing on the effective date Credit is authorized for new employees hired for new positions created on or after the effective date, which result in an increase in the total workforce of the business located in the City New positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire b If filled before July 1 st of any given year, a newly created position is eligible for a full yearly credit If filled after June 30th, the position is eligible for only a half credit for the first calendar year c Credit may not be accrued and carried forward or back No refunds may be granted for unused portion of credits under this section If the position is filled during the calendar year, after the filing of a quarterly tax period, an amended first or third quarter tax return will be allowed, if appropriate, to qualify all the credit to which the employer is entitled for that year (ii) For the purposes of this section a "Eligible person" means a person or company who resides in the City and is engaging in a business activity within the City b "Qualified employment position" means a permanent, full - time position with compensation of at least a "family wage" within twelve (12) months after the date of hire (allowing for training time and a probation period) If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full -time basis during a period not to exceed three (3) months if the employer is actively recruiting a replacement employee c "Family wage," beginning January 1, 2007, is seventeen dollars and eleven cents ($17 11) an hour This is the annual average wage in Kitsap County for 2004, developed by the Washington State Employment Security Department, Labor Market and Economic Development Division ( "ES202 ") This amount will be adjusted annually beginning on January 1, 2008, by an amount equal to the increase in the Consumer Price Index ( "CPI ") for 23 B & 0 Tax Code Updates 2012 Urban Wage Earners, Tacoma - Seattle - Bremerton area, of the prior year If the CPI increase is more than five (5) percent, a five (5) percent increase will be used in computing the basis d The purchase of an existing business does not create an allowance of the credit for existing positions (iii) No application is necessary for the tax credit, however, information must be submitted for each new employee position for which credit is requested, and included with the first tax return in which the credit is claimed The person must keep records necessary for the City to verify eligibility under this section This information includes a Employment records, including Washington State and federal tax returns, for the current year and previous five (5) years, and b Information relating to description of business activity engaged in at the eligible location by the employee (b) If at any time the Director finds that an employer is not eligible or has lost eligibility for a tax credit under this section, the total amount of taxes for which a credit has been claimed for current and prior periods shall be immediately due (4) The tax levied pursuant to this chapter shall be in addition to any other tax or fee that may be imposed or levied by the City of Bremerton 3.48 illliNG BUSINESS WIT14 TuL CITY. E*eept where sueh a tax is other-wise levied and eelleeted by the C" from sueh persoff,- there is hereby levied a ta* en the pi:tvtlege of aeeepting or- exeeating a eentr-aet with the G" Sueh tax shall be levied and eelleeted whether- geeds or- sefviees afe delivered within or- wt the G" and whether- er- not stieh per-sea has an effiee or- plaee ef business within er- without GAtl Exeept as provided to BMG= 3 48 077, as to sueh per-sons the afneunt of tax shall be equal to t gross eeatfaet pfiee multiplied by the rate under- BMC 3 48 050 thm wetild ether-wise apply 3.48.070 MULTIPLE ACTIVITIES CREDIT WHEN ACTIVITIES TAKE PLACE IN ONE (1) OR MORE CITIES WITH ELIGIBLE GROSS RECEIPT TAXES. This section provides a tax credit for taxpayers engaged in multiple taxable activities This section provides a credit against eligible selling or manufacturing taxes imposed by the City for extracting or manufacturing taxes paid to the City or to any other local jurisdiction with respect to the same products The tax credit does not depend upon whether a person that sells in the City extracts or manufactures in the City or in another jurisdiction to which it has paid an eligible gross receipts tax The tax credit does not depend on whether a person that manufactures in the City extracts in the City or in another jurisdiction to which it has paid an eligible gross receipts tax The credit is available to any person that pays an eligible gross receipts tax on the applicable activities, regardless of where it conducts business The result of this section is that a city in which selling takes place gives up the tax to the manufactunngjunsdiction and the manufacturing jurisdiction gives up the tax to the extracting jurisdiction, whether those jurisdictions are inside or outside the State of Washington (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of BMC 3 48 050 shall be taxable under each applicable subsection (2) Notwithstanding anything to the contrary herein, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, 24 B & 0 Tax Code Updates 2012 and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied and that the taxpayer paid the amount of tax sought to be credited (4) Credit for Persons That Sell in the City Products That They Extract or Manufacture Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the City, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the City The amount of the credit shall not exceed the tax liability ansmg under this chapter with respect to the sale of those products (5) Credit for Persons That Manufacture Products in the City Using Ingredients They Extract Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products (6) Credit for Persons That Sell Within the City Products That They Print, or Publish and Print Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City The amount of the credit shall not exceed the tax liability ansmg under this chapter with respect to the sale of those products 3.48.075 DEDUCTIONS TO PREVENT MULTIPLE TAXATION OF MANUFACTURING ACTIVITIES AND PRIOR TO JANUARY 1, 2008, TRANSACTIONS INVOLVING MORE THAN ONE (1) CITY WITH AN ELIGIBLE GROSS RECEIPTS TAX. This section establishes deductions to be applied when a single taxable activity is taxable by more than one (1) jurisdiction that imposes an eligible gross receipts tax To eliminate the possibility of the same sale or service being taxed more than once by cities that maintain nexus and an eligible gross receipts tax, the cities' deductions set forth in this section shall apply as follows (1) Manufacturing — Person Manufacturing Products Within and Without A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid with respect to manufacturing such products (2) Goods and Services — Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one (1) jurisdiction may be entitled to a deduction as follows (a) A taxpayer that has paid an eligible gross receipts tax with respect to a sale of goods or services to a jurisdiction in which the goods are delivered or the services are 25 B & 0 Tax Code Updates 2012 provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City (b) If a taxpayer has not paid tax to the Jurisdiction where the product is delivered or the service is provided, then no deduction is allowed The sale shall be taxed by the city where the office or place of business that generated the sale is located For both sales and services, the order of taxing rights is delivery city, first, and business office location, second (c) Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one (1) Jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill may deduct from the measure of the tax on those amounts the gross income used in measuring the eligible gross receipts tax paid to the other jurisdiction where the headquarters is located (d) A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City (e) For taxes due under this subsection (2) after January 1, 2008, see BMC 3 48 077 3.48.076 ASSIGNMENT OF GROSS INCOME DERIVED FROM INTANGIBLES. Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the Jurisdiction where the person is domiciled (its headquarters is located) 3.48.077 ALLOCATION AND APPORTIONMENT OF INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE (1) JURISDICTION. Effect: _,o r anee y 1 , 2004 ..Fe C7ross income other than persons subject to the provisions of Chapter 82 14A RCW, shall be allocated and apportioned as follows- (1) Location of Activity Gross income derived from all activities other than those taxed as service or royalties under BMC 3 48 050(1)(g) shall be allocated to the location where the activity takes place (2) Place of Delivery In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs (3) In the case of sales of digital products, the activity takes place where delivery to the buyer occurs The deliverdigital products will be deemed to occur at (a) The seller's place of business if the purchaser receives the di ig tal product at the seller's place of business, (b) If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller, (c) If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith, (d) If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, 26 B & 0 Tax Code Updates 2012 including the address of a purchaser's payment instrument, if no other address is available when use of this address does not constitute bad faith, and (e) If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82 04 050 (2)(g) or 6)(b ) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold (4) If none of the methods in subsection (3) above for determining where the delive yry of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided therein, then the City and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products The taxpayer will be responsible for petitioning the City to use an alternative method If taxpayer and the City are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products then the City may employ an alternative method for allocating the income from the sale of digital products (5) For purposes of subsections (3)(a) through _(e), "Receive" has the same meaning as in RCW 82 32 730 ft Allocation Gross income derived from activities taxed as services and other activities taxed under BMC 3 48 050(1)(g) (Service) shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service - income factor and the denominator of which is two (2) (a) Payroll Factor The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period Compensation is paid in the City if (i) The individual is primarily assigned within the City, (ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty (50) percent or more of his or her service for the tax period in the City, or (iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty (50) percent or more of his or her service in any city and the employee resides in the City (b) Service Income Factor The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period Service income is in the City if (i) The customer location is in the City, or (ii) The income - producing activity is performed in more than one (1) location and a greater proportion of the service - income- producing activity is performed in the City than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location, or (iii) The service - income - producing activity is performed within the City, and the taxpayer is not taxable in the customer location (c) Other Allocation Methods If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, 27 B & 0 Tax Code Updates 2012 that one (1) of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable (i) Separate accounting, (u) The use of a single factor, (iii) The inclusion of one (1) or more additional factors that will fairly represent the taxpayer's business activity in the City, or (iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income (4) Definitions The definitions in this subsection apply throughout this section (a) "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less any exemptions or deductions available (b) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal Internal Revenue Code (c) "Individual" means any individual who, under the usual common law rules applicable in determining the employer - employee relationship, has the status of an employee of that taxpayer (d) "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place (e) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties (f) "Service- taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification (g) "Tax period" means the calendar year during which tax liability is accrued If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year (h) "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so (5) Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable 3.48.078 ALLOCATION AND APPORTIONMENT OF PRINTING AND PUBLISHING INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE (1) JURISDICTION. Notwithstanding RCW 35 102 130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this State from which the taxpayer's business is directed or managed As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82 04 280(1) by the Department of Revenue 28 B & 0 Tax Code Updates 2012 3.48.090 EXEMPTIONS. (1) Nonprofit Corporations or Nonprofit Organizations This section shall not apply to nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons (2) Health Maintenance Organization, Health Care Service Contractor, Certified Health Plan Beginning on January 1, 2000, this chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48 14 0201 (3) Public Utilities This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 3 50 BMC (4) Investments — Dividends from Subsidiary Corporations This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations (5) International Banking Facilities This chapter shall not apply to the gross receipts of an international banking facility As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this State, and which is incorporated and doing business under the laws of the United States or of this State, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611 -631, or an agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601- 604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 2 4 8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 2 4 8 of Regulation D) (6) Insurance Business This chapter shall not apply to amounts received by any person or agent who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the State pursuant to RCW 48 14 020, and provided further, that the provisions of this subsection shall not exempt any p er-son engaging i the business of insur -anee as a br-eker- as defined in RGW 49 17 020 er- as a seheiter- as defined to RGW 48 17 030, aiid— bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor (7) Farmers — Agriculture This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons (8) Athletic Exhibitions This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission (9) Racing This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission 29 B & 0 Tax Code Updates 2012 (10) Ride Sharing This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46 74 010 (11) Employees This chapter shall not apply to (a) Any person in respect to the person's employment in the capacity as an employee or servant as distinguished from that of an independent contractor For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended (b) A booth renter, as defined by RCW 18 16 020, is an independent contractor for purposes of this chapter (12) Amounts Derived from Sale of Real Estate This chapter shall not apply to gross proceeds derived from the sale of real estate This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer (13) Mortgage Brokers' Third -Party Provider Services Trust Accounts This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third -party costs if the accounts are operated in a manner consistent with RCW 19 146 050 and any rules adopted by the director of financial institutions (14) Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle Fuel This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82 36 010 and exempt under RCW 82 36 440, provided, that any fuel not subjected to the State fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter (15) Amounts Derived from Liquor, and the Sale or Distribution of Liquor This chapter shall not apply to liquor as defined in RCW 66 04 010 and exempt in RCW 66 08 120 (16) Casual and Isolated Sales This chapter shall not apply to the gross proceeds derived from casual or isolated sales (17) Accommodation Sales This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (a) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article, and (b) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen (14) days to reimburse in kind a previous accommodation sale by the buyer to the seller (18) Taxes Collected as Trust Funds This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third -party obligations to pay taxes such as the retail sales tax, use tax, and admission tax (19) Port District Business Activity For the purpose of the tax imposed by BMC 3 48 050(1)(a) through (g), persons engaged in business on Port District owned property located within and zoned by the City with an industrial classification ( "Port Property") shall be treated in the same manner as if the Port Property were located in unincorporated Kitsap County and therefore exempt from the tax; however, the apportionment and allocation, place of delivery and the appropriate tax provisions of this chapter shall apply for business activity occurring off the 30 B & 0 Tax Code Updates 2012 Port Property but within the City, also in the same manner as if the Port Property were located in unincorporated Kitsap County (20) Three (3) Year Exemption for Annexed Businesses This chapter shall not apply to any person with respect to a business activity conducted in an area that has become part of the City by annexation, provided, however, that the business premises of such person be located in the said area on the date of annexation, and provided further, that the exemption provided herein shall cease at the expiration of twelve (12) full calendar quarters following the date of such annexation 3.48.100 DEDUCTIONS. In computing the license fee or tax, there may be deducted from the measure of tax the following items (1) Compensation from Public Entities for Health or Social Welfare Services — Exception In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82 04 43 1) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 U S C Section 1071 et seq , as amended, or amounts payable pursuant thereto (2) Interest on Investments or Loans Secured by Mortgages or Deeds of Trust In computing tax, to the extent permitted by Chapter 82 14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non - transient residential properties (3) Interest on Obligations of the State, Its Political Subdivisions, and Municipal Corporations In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof (4) Interest on Loans to Farmers and Ranchers, Producers or Harvesters of Aquatic Products, or Their Cooperatives In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance - related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm- related or aquatic- related services to these individuals or entities (5) Receipts from Tangible Personal Property Delivered Outside the State In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. (6) Cash Discount Taken by Purchaser In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing 31 B & 0 Tax Code Updates 2012 classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions (7) Credit Losses of Accrual Basis Taxpayers In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis (8) Repair, Maintenance, Replacement, Etc, of Residential Structures and Commonly Held Property — Eligible Organizations (a) In computing tax, there may be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held property, but excluding property where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by (i) A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership, (n) An association of owners of property as defined in RCW 64 32 010, as now or hereafter amended, from a person who is an apartment owner as defined in RCW 64 32 010, or (iii) An association of owners of residential property from a person who is a member of the association "Association of owners of residential property" means any organization of all the owners of residential property in a defined area who all hold the same property in common within the area (b) For the purposes of this subsection "commonly held property" includes areas required for common access such as reception areas, halls, stairways, parking, etc , and may include recreation rooms, swimming pools and small parks or recreation areas, but is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc (c) To qualify for the deductions under this subsection (1) The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to the salary or compensation of like positions within the county wherein the property is located, (n) Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be rebated to the members of the association; (iii) Assets of the association or ( ) organization must be distributable to g all members and must not inure to the benefit of any single member or group of members (9) Sales at Wholesale or Retail of Precious Metal Bullion and Monetized Bullion In computing tax, there may be deducted from the measure of the tax amounts derived from the sale at wholesale or retail of precious metal bullion and monetized bullion However, no deduction is allowed on amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, and no deduction or offset is allowed against such commissions on account of salaries or commissions paid to salesmen or other employees (10) Amounts Representing Rental of Real Estate for Boarding Homes In computing tax, there may be deducted from the measure of tax amounts representing the value of the rental of real estate for "boarding homes " To qualify for the deduction, the boarding home must meet the definition of "boarding home," and be licensed by the State of Washington under Chapter 18 20 RCW The deduction shall be in the amount of twenty -five (25) percent of the gross 32 B & 0 Tax Code Updates 2012 monthly billing when the boarder has resided within the boarding home for longer than thirty (30) days (11) Radio and Television Broadcasting — Advertising Agency Fees — National, Regional, and Network Advertising — Interstate Allocations In computing tax, there may be deducted from the measure of tax by radio and television broadcasters amounts representing the following (a) Advertising agencies' fees when such fees or allowances are shown as a discount or price reduction in the billing or that the billing is on a net basis, i e , less the discount, (b) Actual gross receipts from national, network, and regional advertising or a "standard deduction" as provided by RCW 82 04 280, and (c) Local advertising revenue that represents advertising which is intended to reach potential customers of the advertiser who are located outside the State of Washington The Director may issue a rule that provides detailed guidance as to how these deductions are to be calculated (12) Constitutional Prohibitions In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States (13) Receipts from the Sale of Tangible Personal Property and Retail Service Delivered Outside the City but Within Washington Effective January 1, 2008, amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property and retail service delivered to the buyer or the buyer's representative outside the City but within the State of Washington may be deducted from the measure of tax under the retailing, retail services, or wholesaling classification (14) Professional Employer Services In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement 3.48.120 TAX PART OF OVERHEAD. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons 3.48.125 RULES AND REGULATIONS. The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions 3.48.130 SEVERABILITV CLAUSE. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected 33 B & 0 Tax Code Updates 2012 SECTION 3. Severabdq If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect SECTION 4. Effective Date This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law PASSED by the City Council the day of , 2012 JIM McDONALD, Council President Approved this day of , 2012 PATTY LENT, Mayor ATTEST APPROVED AS TO FORM SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney PUBLISHED the day of .9 2012 EFFECTIVE the day of 5 2012 ORDINANCE NO R \Legal \Legal \Ordmances\Finance\2012 B & O Tax Ordmances\B & O Tax Code Model Ordinance Updates 2012 - final doc 34 B & 0 Tax Code Updates 2012 AGENDA BILL CITY OF BREMERTON to A CITY COUNCIL ■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SUBJECT: Ordinance No 5200 adopting Study Session Date Various the Fiscal Year 2013 City of Bremerton COUNCIL MEETING Date December 5, 2012 Budget Department Finance Presenter Becky Hasart Phone 360 -473 -5722 SUMMARY: The attached ordinance represents the proposed 2013 Fiscal Budget, with the slight adjustment requested from the November 28 workshop, for consideration If adopted, this ordinance would become effective January 1, 2013 ATTACHMENTS: Ordinance No 5200 of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35 33 075 FISCAL IMPACTS (Include Budgeted Amount) The total 2013 budget for all funds is $113,553,408 STUDY SESSION AGENDA ❑ No Discussion ® Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No 5200 of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35 33 075 COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 ORDINANCE NO. 5200 AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35 33 075 WHEREAS, State law, Chapter 35 33 RCW requires the City to adopt an annual budget and provides procedures for the filing of estimates, a preliminary budget, deliberations, public hearings, and final fixing of the budget, and WHEREAS, a preliminary budget for the fiscal year 2013 has been prepared and filed in the Office of the City Clerk for the City of Bremerton, public hearings have been held for the purposes of fixing the final City Budget, and the City Council has deliberated and has made adjustments and changes deemed necessary and proper, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION 1. That the 2013 Annual Budget for the City of Bremerton, Washington, on file in the office of the City Clerk, covering the period from January 1, 2013, through December 31, 2013, with regular revenues and unencumbered fund balances of $113,553,408 and expenditures and ending fund balances of $113,553,408 is hereby approved and adopted, and the respective amounts provided for in said budget for the several funds of the City of Bremerton are hereby fixed and adopted as follows General Fund (001) City Council $ 340,929 Executive 364,662 Financial Services 1,147,119 Legal 979,431 r Human Resources 383,512 Community Development 1,438,922 Municipal Court 1,427,534 City Auditor 173,168 Law Enforcement 9,713,071 Fire/Emergency Medical 8,363,145 1 2013 Budget Police/Fire Pension 2,493,000 General Facilities 743,223 General Parks 2,560,935 Engineering 2,089,047 Non - Departmental 2,373,398 Ending Fund Balance 2 ,341,558 Total General Fund $ 36,932,654 Arterial Street (101) 3,198,331 Street (102) 2,976,191 Contingency Reserve (103) 232,605 Lodging Tax (104) 486,962 Parking System (105) 1,351,995 Community Development Block Grant (106) 3,848,709 Abatement Revolving (108) 236,613 Police Special Projects (110) 829,238 Public Access Television (113) 516,219 Gift & Donations Fund (114) 74,761 Trial Improvement (116) 68,331 One Percent For Arts (117) 51,430 Conference Center Operating (120) 1,931,156 Bond Fund (201) 36,154 2010 LTGO (203) 644,493 2010 UTGO/LTGO - B (204) 1,071,784 Government Center LTGO (205) 245,300 General Government Capital Improvement (308) 438,862 Park Facilities Construction (3 10) 608,616 Evergreen Park Remediation (311) 31,031 Lower Wheaton Way (33 1) 382,995 Water Utility (401) 9,951,038 Water Capital (404) 4,322,971 Wastewater Utility (45 1) 15,617,028 Wastewater Capital (454) 6,479,106 Stormwater Utility (481) 2,801,878 Gorst Creek Watershed (482) 355,964 Stormwater Capital (484) 2,770,992 Gold Mountain Golf Complex (407) 2,123,656 2 2013 Budget Risk Management (503) 3,395,236 Employment Security (506) 334,954 Accumulated Leave Liability (507) 273,106 Equipment Rental Reserve — Operations & Maintenance (509) 1,764,284 Equipment Rental Reserve — Equipment Reserves (5 10) 5,939,934 Information Services (511) 1,228,831 Total All Funds $ 113,553,408 SECTION 2. That the totals for the funds noted in Section 1 above and as set forth in the official "City of Bremerton 2013 Annual Budget" adopted herein, are hereby appropriated for the fiscal year 2013 SECTIONS. Effective January 1, 2013, the annual compensation of the Municipal Court Judge shall be $134,625 00 which is 95% of the District & Superior Court salaries as established on September 1, 2011 SECTION4. Effective January 1, 2013, the "management, professional, confidential & fiduciary" pay plans shall not receive a cost of living adjustment over the 2012 pay rates SECTIONS. Effective January 1, 2013, the base salary of the Mayor shall be $122,425 00 which represents no increase over the 2012 base salary SECTION 6. Nothing contained herein shall be construed to require the City of Bremerton or its officers to fill any vacancy in any of the positions established by this ordinance resulting from the discharge, resignation or retirement of such employee Nothing herein contained shall require the City of Bremerton or its officers to pay the maximum amount budgeted for any position shown therein SECTION 7. Severabrhty If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect SECTION 8. Effective Date This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law 3 2013 Budget PASSED by the City Council the day of , 2012 JIM MCDONALD, Council President Approved this day of , 2012 PATTY LENT, Mayor ATTEST APPROVED AS TO FORM SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney PUBLISHED the day of 9 2012 EFFECTIVE the day of 9 2012 ORDINANCE NO 4 2013 Budget 2013 REVENUE SOURCES - ALL FUNDS BEG LIC INTER- CHARGES FINES 2013 FUND AND GOVT FOR AND OTHER TOTAL FUND BAL TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET General Fund General Government City Council 135,605 135,605 Executive 145,044 145,044 Financial Services 2,779,466 356,625 551,827 39,000 3,726,918 Legal 427,602 427,602 Human Resources 152,542 152,542 Community Development 230,500 113,250 343,750 Municipal Court 1,000 453,500 505,000 40,500 1,000,000 City Auditor 67,999 67,999 Law Enforcement 7,000 207,443 402,300 5,000 8,600 630,343 Fire/Emergency Medical 1,207,000 1,200 1,750 580,400 1,000 4,800 1,796,150 Police & Fire Pension 45,500 45,500 General Facilities 143,486 46,080 189,566 Parks 340,530 52,500 393,030 Engineering 40,000 1,715,217 1,755,217 Non - Departmental 17,910,512 145,500 389,009 900 566,500 4,237,820 23,250,241 Beginning Fund Balance 2,873,147 2,873,147 Total General Fund 2,873,147 21,896,978 780,825 644,702 5,230,202 1,116,500 4,390,300 36,932,654 Special Revenue Funds Arterial Street 289,831 2,508,500 400,000 3,198,331 Street 446,341 455,000 1,207,550 445,000 422,300 2,976,191 Contingency Reserve 232,305 300 232,605 Lodging Tax 96,862 390,000 100 486,962 Parking System 213,645 350 250,000 888,000 1,351,995 Comm Dev Block Grant 1,440,816 2,289,793 30,000 88,100 3,848,709 Abatement Revolving Fund 230,613 5,500 500 236,613 Police Special Projects 740,038 18,000 71,200 829,238 Public Access Television 141,319 240,000 38,000 96,700 200 516,219 Gift & Donations Fund 68,136 1,500 5,125 74,761 Trial Improvement 46,331 22,000 68,331 One Percent for Arts 51,330 100 51,430 Conference Center Oper 385,982 1,381,674 163,500 1,931,156 Total Spec Rev Funds 4,383,549 845,000 240,000 6,065,843 1,960,724 268,000 2,039,425 15,802,541 Debt Service Fund Bond Fund 10,011 25,943 200 36,154 2010 LTGO 153,408 330,000 120,085 41,000 644,493 2010 UTGO /LTGO (B) 47,409 809,000 37,675 177,700 1,071,784 Government Center LTGO 3,652 241,648 245,300 Total Debt Service Fund 214,480 1,164,943 0 157,760 0 0 460,548 1,997,731 Capital Improvement Funds General Govt Capital Improv 138,712 300,000 150 438,862 Park Facilities Construction 447,766 160,850 608,616 Evergreen Park Remediation 2,531 24,000 4,500 31,031 Lower Wheaton Way 357,045 25,950 382,995 Total Capital Improv Funds 946,054 300,000 0 49,950 0 0 165,500 1,461,504 2013 REVENUE SOURCES - ALL FUNDS BEG LIC INTER- CHARGES FINES 2013 FUND AND GOVT FOR AND OTHER TOTAL FUND BAL TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET Enterprise Funds Water Utility 693,879 8,954,500 302,659 9,951,038 Water Capital 3,858,671 464,300 4,322,971 Wastewater Utility 1,965,493 16,735 13,626,500 8,300 15,617,028 Wastewater Capital 4,447,321 2,031,785 6,479,106 Stormwater Utility 438,478 2,362,000 1,400 2,801,878 Gorst Creek Watershed 93,604 261,670 690 355,964 Stormwater Capital 2,537,695 233,297 2,770,992 Gold Mountain Golf Complex 45,456 1,975,000 103,200 2,123,656 Total Enterprise Funds 14,080,597 16,735 0 261,670 26,918,000 0 3,145,631 44,422,633 Internal Service Funds Risk Management 1,861,723 1,533,513 3,395,236 Employment Security 102,554 232,400 334,954 Accumulated Leave Liability 38,206 234,900 273,106 ER &R Operations & Mamt 185,644 1,578,000 640 1,764,284 ER &R Equipment Reserve 5,881,134 58,800 5,939,934 Information Services 127,858 1,100,973 1,228,831 Total Internal Service Funds 8,197,119 0 0 0 2,678,973 0 2,060,253 12,936,345 Total Non - General Funds 27,821,799 2,326,678 240,000 6,535,223 31,557,697 268,000 7,871,357 76,620,754 Total All Funds 30,694,946 24,223,656 1 020,825 7,179,925 36,787,899 1,384,500 12,261,657 1 13,553,408 Revenue Sources - All Funds Fines & Forfeits Other Revenue Charges for Service $1,384,500 $12,261,657 $36,787,899 1% 11% 33% Beginning Fund Balance $30,694,946 Intergovernmental 27% $7,179,925 6% Licenses & Permits Taxes $1,020,825 $24,223,656 1 %u 21% 2013 EXPENDITURES - ALL FUNDS 2013 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL BUDGET General Fund General Government City Council 317,000 23,929 340,929 Executive 287,100 77,562 364,662 Financial Services 850,900 296,219 1,147,119 Legal Department 872,000 107,431 979,431 Human Resources 232,800 150,712 383,512 Community Development 1,074,100 354,822 10,000 1,438,922 Municipal Court 860,600 566,934 1,427,534 City Auditor 165,100 8,068 173,168 Law Enforcement 8,209,900 1,503,171 9,713,071 Fire /Emergency Medical 7,518,400 844,745 8,363,145 Police & Fire Pension 2,201,000 292,000 2,493,000 General Facilities 210,342 467,881 65,000 743,223 General Parks 1,827,200 733,035 700 2,560,935 Engineering 1,913,272 175,775 2,089,047 Non - Departmental 2,291,750 81,648 2,373,398 Ending Fund Balance 2,341,558 2,341,558 Total General Fund 26,539,714 7,894,034 700 65,000 91,648 2,341,558 36,932,654 Special Revenue Funds Arterial Street 3,070,000 128,331 3,198,331 Street 1,089,700 1,236,157 475,000 175,334 2,976,191 Contingency Reserve 232,605 232,605 Lodging Tax 226,000 170,000 90,962 486,962 Parking System 655,491 510,304 80,000 106,200 1,351,995 Comm Dev Block Grant 115,200 2,125,323 160,850 1,447,336 3,848,709 Abatement Revolving Fund 42,000 194,613 236,613 Police Special Projects 438,902 50,000 340,336 829,238 Public Access Television 238,600 58,210 38,000 25,000 156,409 516,219 Gift & Donations Fund 10,100 64,661 74,761 Trial Improvement 23,000 45,331 68,331 One Percent for Arts 500 10,000 40,930 51,430 Conference Center Oper 1,559,053 372,103 1,931,156 Total Spec Rev Funds 1,443,500 6,374,736 510,304 3,643,000 435,850 3,395,151 15,802,541 Debt Service Fund Bond Fund 36,154 36,154 2010 LTGO 548,480 96,013 644,493 2010 UTGO /LTGO (B) 1,063,750 8,034 1,071,784 Government Center LTGO 243,300 2,000 245,300 Total Debt Service Fund 0 0 1,855,530 0 0 142,201 1,997,731 Capital Improvement Funds General Govt Capital Improv 345,000 93,862 438,862 Park Facilities Construction 160,850 447,766 608,616 Evergreen Park Remediation 30,000 1,031 31,031 Lower Wheaton Way 30,912 352,083 382,995 Total Capital Improv Funds 0 0 0 221,762 345,000 894,742 1,461,504 2013 EXPENDITURES - ALL FUNDS 2013 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL BUDGET Enterprise Funds, Water Utility 3,738,200 3,421,173 709,819 1,505,100 576,746 9,951,038 Water Capital 3,837,000 485,971 4,322,971 Wastewater Utility 2,599,200 4,114,346 2,809,689 4,600,485 1,493,308 15,617,028 Wastewater Capital 5,305,000 1,174,106 6,479,106 Stormwater Utility 784,500 883,422 14,599 472,400 646,957 2,801,878 Gorst Creek Watershed 350,000 5,964 355,964 Stormwater Capital 753,000 2,017,992 2,770,992 Gold Mountain Golf Complex 1,792,380 283,600 47,676 2,123,656 Total Enterprise Funds 7,121,900 10,561,321 3,817,707 9,895,000 6,577,985 6,448,720 44,422,633 Internal Service Funds Risk Management 240,000 1,289,177 1,866,059 3,395,236 Employment Security 180,000 154,954 334,954 Accumulated Leave Liability 200,000 73,106 273,106 ER &R Operations & Mamt 504,800 1,126,817 132,667 1,764,284 ER &R Equipment Reserves 384,000 5,555,934 5,939,934 Information Services 536,200 541,467 85,000 66,164 1,228,831 Total Internal Service Funds 1,661,000 2,957,461 0 469,000 0 7,848,884 12,936,345 Total Non - General Funds 10,226,400 19,893,518 6,183,541 14,228,762 7,358,835 18,729,698 76,620,754 Total All Funds 36,766,114 27,787,552 6, 184,241 14,293,762 7,450,483 21,071,256 1 13,553,408 Expenditures - All Funds Transfers Capital Outlay $7,450,483 $14,293,762 Ending Fund 13% Balance $21,071,256 19% Debt Service $6,184,241 5% Personnel $36,766,114 32% Supplies & Services $27,787,552 24% Lori Smith From Lori Smith on behalf of City Council Sent Monday, December 03, 2012 11 44 AM To City Council Cc Patty Lent, Becky Hasart Subject FW Response to Citizen Concern - PILOT (Bruce Hail) AM Counc►1 Members, Mayor Lent, and Becky (FYI) From: Greg Wheeler Sent: Sunday, December 02, 2012 10 54 PM To: lega13130)yahoo com Cc: City Council Subject: FW You knew this was coming Bruce, The PILOT transfer from the Utilities Fund has been necessary to maintain the General Fund operations at current levels The current levels of service you see from the Police, Fire and Parks Departments is directly related to the PILOT subsidizing the city's General Fund Without it levels of service would drop Nobody I know of from the City Council or Mayor's office likes being forced to rely on this but until sales tax receipts pick up this is what we have to work with As it is, the Parks Department is now operating at minimum staffing levels to keep parks open and maintained Also nobody has come forward at this time (including myself) who is willing to reduce Police and Fire department budgets as it is generally understood that this will reduce our current level of Public Safety Lora, please forward Mr Halls email to the rest of the City Council and Mayor for their review Thank you, Greg Wheeler Bremerton City Council District 5 On Sat, Dec 1, 2012 at 4:14 PM, Bruce Hall < leaa1313(&yahoo.com > wrote: Greg, I did not see who on the council or what said they did not like the mayors thing with this fee thing and all coming up I wonder at times if anyone on the council or the mayor herself looks at things Meaning the way the country is going with the government saying they want to rasie taxes, plus the new governor stated he was going to raise taxes than the county wants to pus the city wants to raise what ever they can find it seems like at times Once again will one of you tell me where it stops Have any of you or the mayor drove around Bremerton? Look at all the homes for sale or rent look at all the empty stores and all and they are all over the place I know yes some are due to forclosures but there is a lot that dust have had to walk away because of things like taxes and all the fees you all seem to want us to pay I do not know what the mayor wants and she needs to stop and think that we do not make the money she does in her work, we have to work for everything we get or need But looking back at the history of Bremerton and all there is only two places I can see the blame on all 1 this, yes the council and the mayors office with all the taxes fees and on and on with no end in sight Again would like one of you to tell me where I am suppose to get all this money to pay for all this when I am on a disability and limited income? All of you going to throw money into a enevelope and send it to me so we can make ends meet? I did not think so or not dust me but the rest of the people that all of this effects Between all the taxes and fees and such plus of course the amount we charge B &O taxes there is where all,the buisnesses have gone to away from the city so they can afford to be in buisness, how come none of you can see this? I use to call this home and the way all has been going I do nto even do that any more and when others ask me where I am from I tell them and all they do is say we are sorry Gee others think this so kind of makes you wonder what the people of Bremerton think at times Hey I have a Pilot plan to, how about all the city government people put in 10 dollars a month and send it to me and when I think I have enough money than I will let you know it is time to stop doing this, makes about as much sense as this plan the city wants does So come on council members and mayors office where is all this money I will need come from? Again thanks for nothing and adding more and more to what I have to pay out Bruce 2 _______________________________________________________________ CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 - Phone (360) 473-5280 DECEMBER 05, 2012 CITY COUNCIL MEETING AGENDA 1. BRIEFING: 5:00 to 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business 2. CALL TO ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS A. Pledge of Allegiance B. Invocation 3. PUBLIC RECOGNITION 4. MAYORS REPORT 5. CONSENT AGENDA A. Claims & Check Register B. Minutes of Meeting - November 7, 2012 C. Minutes of Study Session - November 14, 2012 D. Minutes of Study Session & Budget Workshop - November 28, 2012 E. Contract Modification No. 1 to Former Chevron Property Remediation Contract with Parametrix F. Agreed Order with Department of Ecology for Long-Term Monitoring and Reporting at the former Chevron Property G. Ordinance No. 5199 to repeal Ch. 2.34 of the Bremerton Municipal Code (BMC) regarding the Gold Mountain Complex Board of Directors H. Adopt Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement 2012 Amendments I. Bid Award to EC Power Systems for Emergency Generator Purchase for Fire Station No. 1 J. Resolution No. 3185 amending and re-establishing City Rates and Fees for 2013 K. Ordinance No. 5201 amending Section 3.86.200 of the Bremerton Municipal Code (BMC) relating to Business & Occupation (B&O) Taxes, and further amending Chapter 3.48 of the BMC (The two major changes relate to "digital goods" and confidentiality of tax returns) 6. GENERAL BUSINESS A. Ordinance No. 5200 adopting the Fiscal Year 2013 City of Bremerton Budget 7. COUNCIL MEMBER REPORTS 8. EXECUTIVE SESSION: 15-Minutes to discuss "Potential Litigation" per RCW 42.30.110 (1)(i) (No action is anticipated...) 9. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations please contact the City Clerk at (360) 473-5323 by noon on the day preceding the Meeting. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Claims & Check Register Study Session Date: COUNCIL MEETING Date: December 5, 2012 Department: Financial Services Presenter: Shannon Corin Phone: 473-5323 SUMMARY: Approval of the following checks and electronic fund transfers: 1) Check #’s through and EFT’s through in the amount of $ . 2) Regular Payroll for the pay period ending November 15, 2012 in the amount of $718,770.76. 3) Retiree Payroll for the pay period ending November 30, 2012 in the amount of $62,910.99. ATTACHMENTS: Check and Electronic Transfers Summaries. FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve consent agenda as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 A/P Vouchers will be posted on Wednesday. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Meeting November 7, 2012 COUNCIL MEETING Date: December 5, 2012 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, November 7, 2012 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, November 7, 2012, at 5:00 PM in Council Conference Room 603 of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, with Council President Jim McDonald presiding. Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye Flemister, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs. Also present were Assistant City Attorney Mark Koontz; City Clerk Shannon Corin; and Legislative Assistant Lori Smith. A COUNCIL BRIEFING was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. The Pledge of Allegiance was led by Council Member Leslie Daugs followed by the invocation provided by Reverend Michael Walter of Kitsap Unitarian Universalist Fellowship. PUBLIC RECOGNITION Mike Walton, Marketing Director of the Kitsap Family YMCA, provided an update on the status of the construction project and also reported on the activities and upcoming events at the “Y”. Jerry McDonald invited the community to hear motivational speaker Roger Brooks present “Making Bremerton and Port Orchard a Destination” on Monday, November 26 from 6:00 to 8:00 PM at SeeFilm Cinema. He will accept any donations toward the $2,000.00 cost. Larry Meyers referred to the current rate study in progress, and asked if the City would consider not charging the higher sewer rates in the summertime for the water that is going on the lawns because he was concerned about all the unsightly brown grass during the summer. Chal Martin confirmed that a water meter is at every service location, and that the sewer rates are based on the average water consumption during the 6-month period during winter months (Oct/Nov/Dec and Jan/Feb/Mar) but sewer rates are not charged for additional water used during the summer. Robert Parker expressed support for the City’s LEAN Graffiti program currently being used in the Charleston area, and hopes the program will expand to other areas of the City. MAYOR’S REPORT  Introduced Bremerton High School Football Coach Nate Gilliam along with several senior football players, and encouraged the community to support their first trip to the State Playoffs in 19 years this Friday, November 9 at 7:00 PM at the Silverdale Stadium;  Announced a series of events from November 13 to 17 to promote “Re-Power Bremerton Week” including a service project with Habitat for Humanity at Bay Vista from November 15 at 8:30 AM to Saturday, November 17 at 2:30 PM; and with Puget Sound Energy for the “Re-Energize Your Lighting Event” on Tuesday, November 13 from 8:00 AM to 5:00 PM and on Wednesday, November 14 from 9:00 AM to 7:00 PM in the Meeting Chambers;  Invited Bremerton High School DECA students who organize the annual Thanksgiving Outreach Dinner that will be served for those in need at the Sons of Norway Hall on Tuesday, November 20 beginning at 10:00 AM until the food is gone (approx. 5:00 PM);  Proclaimed the Month of November 2012 as “Pancreatic Cancer Awareness Month”, and invited Joan Mabut with the Pancreatic Cancer Action Network to accept the proclamation as well as discuss the importance of educating our legislatures to support pancreas cancer research.  Invited Sara Meagher, Board President and Julia Zander, Market Manager for the Bremerton Farmers Market to provide an overview of the 2012 season, and also to announce the “Holiday Market” event on Sunday, November 18 from Noon to 4:00 PM here in the Meeting Chambers; City Council Reg. Mtg. Minutes Wednesday, November 7, 2012 Page 2 of 6  To fight hunger, the “Send Hunger Packing” food drive will be held through the month of November with bins in various locations around the City to collect non-perishable food donations; and on Sunday, the “Kitsap Interfaith Network Hunger Walk” would begin at 2:00 PM from Our Lady Star of the Sea Church to the Norm Dicks Government Center with a 3:00 Program; and  Hoped the Council and community would attend the Veteran’s Day event “Honor All Who Served” organized by the Navy League and will be held at the Kitsap Sun Pavilion on Monday, November 12 from 9:00 AM to 1:00 PM, with the program scheduled from 10:30 to 11:45 AM. CONSENT AGENDA 5A. Check Numbers 350655 through 350959, and EFT-12272 through EFT-12335 in the amount of $2,703,906.40; Regular Payroll and Payouts for the pay period ending October 15, 2012 in the amount of $707,843.69; Regular Payroll for the pay period ending October 31, 2012 in the amount of $764,720.45; and Retiree Payroll for the pay period ending October 31, 2012 in the amount of $63,042.34. 5B. Minutes of Meeting – October 17, 2012 5C. Minutes of Budget Workshop – October 22, 2012 5D. Minutes of Study Session – October 24, 2012 5E. Minutes of Budget Workshop – October 29, 2012 5F. Re-appointment of Greg Jose to the Bremerton Planning Commission 5G. Re-appointment of Rick Tift to the Bremerton Planning Commission 5H. Appointment of Shawntel (Shawn) Dinkuhn to the Bremerton Planning Commission 5I. Appointment of David Farr to the Bremerton Design Review Board There were no questions or comments from the public; Shawn Dinkuhn was introduced… 06:24:15 M/S/C (Arends/Runyon) Move to approve the CONSENT AGENDA as presented. Voted in favor of Motion: Daugs, Runyon, Wheeler, Flemister, Arends, Younger, Wofford, McDonald Abstained: Brockus Motion carried: 8-Yes; 1-Abstention PUBLIC HEARINGS 6A – PUBLIC HEARING AND RELEASE OF INGRESS AND EGRESS ACCESS EASEMENT FOR BAY VISTA PLAT: Chal Martin, Public Works & Utilities Director, stated that the City of Bremerton has been approached by the Bremerton Housing Authority to vacate an ingress and egress easement which crosses the property across old roadways which are no longer being used. The phased platting of the area has now been completed and all new roadways needed for access have been dedicated and constructed, and so the easement is no longer needed. President McDonald opened the public hearing for comments…With no comments received the public hearing was closed to the public and opened to the Council Members for discussion… 06:26:11 Motion was made by Flemister, and seconded by Runyon…. Questions were asked by Runyon and Daugs, with responses provided by Mr. Martin… 06:27:45 M/S/C/U (Flemister/Runyon) Move to approve the release of the access easement and authorize the Mayor to finalize and execute the release document with substantially the same terms and conditions as presented. City Council Reg. Mtg. Minutes Wednesday, November 7, 2012 Page 3 of 6 6B – PUBLIC HEARING AND RESOLUTION NO. 3183 APPROVING THE 2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDING RECOMMENDATIONS FOR INCLUSION IN THE 2013 CDBG/HOME ACTION PLAN: Marie Vila, CDBG Program Administrator, summarized that on May 16, 2012, City Council approved the 2013 CDBG/HOME Policy Plan outlining the CDBG and HOME Funding allocation process. Based on that policy, the program’s Grant Recommendation Committees (GRC) have developed funding recommendations for Council consideration and approval. If approved, these submissions will be sent to the Department of Housing and Urban Development (HUD) in the City’s 2013 Annual Action Plan. Rosalyn Owens, serving on “GRC – Public Services” also provided additional comments about the process. President McDonald opened the public hearing for comments, which were received by Joe Roszack, Director of Kitsap Mental Health Services; Robert Parker; and Stuart Walton, Kitsap Community Resources… With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion… 06:47:18 Motion was made by Daugs, and seconded by Brockus…. Comments and questions were provided by Daugs, Brockus, Runyon, Wheeler, Wofford, Wheeler, and Flemister; with responses provided by Ms. Vila... 06:53:49 M/S/C (Daugs/Brockus) Move to pass Resolution No. 3183 approving the 2013 funding recommendations to be included in the 2013 Action Plan to HUD; and authorize the Mayor to finalize and execute the contracts with substantially the same terms and conditions as presented once all funding has been secured and HUD has approved the Annual Action Plan. Voted in favor of Motion: Runyon, Wheeler, Flemister, Arends, Younger, Wofford, Brockus, McDonald Abstained: Daugs Motion carried: 8-Yes; 1-Abstention 6C – PUBLIC HEARING ON REVENUE SOURCES FOR THE PROPOSED 2013 BREMERTON BUDGET (FOR COMMENT ONLY, NO ACTION); AND PUBLIC HEARING ON ORDINANCE NO. 5197 LEVYING PROPERTY TAXES FOR COLLECTION IN 2013 (ACTION ANTICIPATED): Becky Hasart, Financial Services Director, clarified that the purpose of tonight’s public hearing is to take comments on the proposed revenue sources, including property and EMS taxes, for the 2013 budget year. Revenue sources are outlined in the 2013 Proposed Budget Document. Property and EMS taxes are adopted separately by ordinance. The City’s property taxes are levied on an annual basis through passage of an ordinance. Per Referendum No. 47 (passed in November 1997) and Initiative 747, City’s with a population over 10,000 are limited in how much they can increase property taxes to either 1% or the Implicit Price Deflator (IPD), whichever is lower. This year, the July over July IPD is 1.295%. The attached ordinance recommends increasing both the general property tax levy and the EMS levy the full 1% as allowed by law. However, the EMS levy is also subject to the $.050 per $1,000 of the assessed value cap, which limits our EMS collections for 2013. The attached ordinance also reauthorizes the tax collection to pay the debt service associated with the voter approved Public Safety Bond. President McDonald opened the public hearing for comments, which were received by Todd Best… City Council Reg. Mtg. Minutes Wednesday, November 7, 2012 Page 4 of 6 With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion… 07:16:23 Motion to approve the ordinance was made by Wofford; and seconded by Brockus… Questions and comments were received by Brockus, Runyon, Wheeler, and Daugs; with responses provided by Ms. Hasart and Fire Chief Al Duke… 07:27:51 M/S/C/U (Wofford/Brockus) Move to approve Ordinance No. 5197 levying property, EMS, and public safety debt service taxes for collection in fiscal year 2013. 6D – PUBLIC HEARING ON RESOLUTION NO. 3148 TO RECOVER ABATEMENT COSTS FOR THE PROPERTY LOCATED AT 2116 5TH STREET: Janet Lunceford, Code Enforcement Officer, Community Development Department, explained that on April 13, 2012, the City secured the house and removed garbage and debris from the property located at 2116 5th Street pursuant to an order issued by the City of Bremerton Administrative Hearing Examiner. The owner of the property stated that the house was occupied without her permission, had no water or sewer service, and acknowledged that is was a public nuisance. She further acknowledged that she understood that the City would place a lien on the property title for the cost of the work. The cost charged to the revolving abatement fund for this action totaled $2,410.24, which included administrative fees as specified in Rate Table C of the Bremerton Municipal Code. The Notice of Hearing was advertised in the Kitsap Sun on October 26, 2012, was posted on the front door of house on the property located at 2116 5th Street, and was mailed to the property owner by both regular mail and electronic certified mail. Council must now decide if the fees are just and reasonable, and how they should be collected. President McDonald opened the public hearing for comments, which were received by Dean O. Davis and Robert Parker… With no further comments, the public hearing was closed to the public and opened to the Council Members for discussion… 07:33:40 Motion was made by Wheeler, and seconded by Wofford…. Comments and questions were provided by Wheeler and Runyon; with responses provided by Ms. Lunceford… 07:36:54 M/S/C/U (Wheeler/Wofford) Move to adopt Resolution No. 3184, ordering that the fees incurred for securing the house and removing garbage and debris from the property located at 2116 5th Street be collected as reasonable abatement costs and become a lien against the property. GENERAL BUSINESS 7A – ORDINANCE NO. 5198 AMENDING SECTION 2.03.010 OF THE BREMERTON MUNICIPAL CODE (BMC) RELATING TO THE MAYOR’S COMPENSATION: Becky Hasart, Financial Services Director, stated that the proposed ordinance amends Section 2.03.010 of the Bremerton Municipal Code to reduce the Mayor’s salary and eliminate the cost of living adjustment. Comments from the public were received by: Robert Parker, Todd Best, and Jerry McDonald… 07:43:070 Motion was made by Runyon, and seconded by Daugs … Comments on the Main Motion were provided by Runyon and Daugs; with responses provided by Ms. Hasart…A proposal to delay this action until the hiring of a City Administrator could be considered was introduced by Wofford, with comments received by Brockus, Runyon, and Wheeler… City Council Reg. Mtg. Minutes Wednesday, November 7, 2012 Page 5 of 6 07:49:10 Motion to Continue to a date certain of April 17, 2013 was made by Wofford, and seconded by Arends… Comments on the Motion to Continue were provided by Daugs, Wofford, Runyon, and Wheeler… 07:52:15 Motion to Continue/S/F (Wofford/Arends) Move to Continue this item to a date certain of April 17, 2012. Voted in favor of Motion to Continue: Arends, Wofford Brockus, Wheeler, Voted opposed to Motion to Continue: Younger. Daugs, Runyon, Flemister, McDonald Motion carried: 4-Yes; 5-No Additional comments on the Main Motion were provided by Brockus and Younger…. 07:54:33 M/S/C (Runyon/Daugs) Move to approve Ordinance No. 5198 amending Section 2.03.010 of the Bremerton Municipal Code relating to the Mayor’s compensation. Voted in favor of Motion: Younger, Wofford, Daugs, Brockus, Runyon, Wheeler, Flemister, Arends Voted in opposition to Motion: McDonald Motion carried: 8-Yes; 1-No COUNCIL MEMBER REPORTS Leslie Daugs hoped everyone would come to the Harvest Market on November 18 from Noon to 4:00 PM in the Chambers; and also wished everyone a happy Thanksgiving. Adam Brockus announced the Annual Winterfest would be held on Friday, December 7 from 5:00 to 8:00 PM with activities downtown and in Manette; encouraged the community to attend the Bremerton High School Knights State Playoff football game this Friday at 7:00 PM at Silverdale Stadium against Archbishop Murphy from Everett; was pleased that Kitsap Sports was leaving Silverdale and relocating back to Bremerton; and thanked everyone who voted in the recent election. Roy Runyon encouraged attendance at several local events including his next District 4 Community Meeting on Tuesday, November 27 from 5:30 to 6:30 PM in the Meeting Chambers; several “Medicare Part D Assistance” events sponsored by the State Insurance Commissioner that will be held in several Kitsap County locations; and the presentation on “Making Bremerton and Port Orchard a Destination” on Monday, November 26 from 6:00 to 8:00 PM at SeeFilm Cinema on 4th Street. Greg Wheeler hoped people would attend the next Union Hill Neighborhood Meeting on Monday, November 12 from 6:30 to 7:30 PM in the basement at the Community of Christ Memorial Lutheran Church; and attend his next District 5 Community Meeting on Monday, November 17 beginning at 6:30 PM also in the basement at the Community of Christ Memorial Lutheran Church. Faye Flemister enjoyed volunteering at the Washington Youth Academy where mock job interviews were held for the cadets; and also enjoyed attending the Women in Red Financial Conference along with Mayor Patty Lent, and thanked Council Member Daugs for attending her daughter’s concert. Carol Arends mourned the passing of former Council Member Charles R. “Tiny” Collins who served 2 terms representing District 7 from 1986 through 1993. President McDonald reminded the public that no Council Meeting would be held the week of November 21. With no further business, he adjourned the Council Meeting at 8:05 PM. City Council Reg. Mtg. Minutes Wednesday, November 7, 2012 Page 6 of 6 Prepared and Submitted by: ______________________________ LORI SMITH Legislative Assistant Attest: ________________________________________ SHANNON CORIN, City Clerk ______________________________ JIM McDONALD, City Council President JM:SC:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Study Session November 14, 2012 COUNCIL MEETING Date: December 5, 2012 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES November 14, 2012 A Study Session of the City Council of the City of Bremerton was called to order in the Mayor’s Conference Room of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, Wednesday, November 14, 2012, at 4:00 PM, with Council President Jim McDonald presiding. Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye Flemister, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs. Christine Grenier, Council Assistant, was present to provide staff support. President McDonald emphasized that the Study Session was open to the public but there would be no opportunities for input or participation; explained that Item B-6 has been added to the agenda with action anticipated; and announced that approved items by Council will be placed on the December 5, 2012 Council Meeting Agenda; or as indicated. A. NO PRESENTATIONS - The following items are budgeted items and/or have been reviewed by the appropriate Council Committee: 1. Contract Modification for long-term groundwater monitoring at former Chevron Property – Tom Knuckey, City Engineer, Public Works & Utilities Department Consent Agenda 2. Agreed Order with Department of Ecology (DOE) for monitoring and reporting at former Chevron Property – Tom Knuckey, City Engineer, Public Works & Utilities Department Consent Agenda 3. Ordinance to repeal Chapter 2.43 of the Bremerton Municipal Code (BMC) regarding the Gold Mountain Complex Board of Directors – Wyn Birkenthal, Parks & Recreation Director Consent Agenda B. FULL DISCUSSION ITEMS 4. 2012 United Way Campaign Briefing – Shannon Corin, City Clerk Information Only 5. Adopt Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement 2012 Amendments – Mary McClure, KRCC Executive Director Consent Agenda 6. Appointment of Public Works Administration Division Manager at a Step Higher than Rate 1 in Band 11 – Chal Martin, Public Works & Utilities Director With Action 04:32:00 Motion was made by Wofford; and seconded by Brockus… Comments and questions were provided by Runyon, Daugs, Brockus, Wheeler, and Younger; with responses provided by Mr. Martin... 04:40:00 M/S/C (Wofford/Brockus) Move to approve the hire of Milenka Hawkins-Bates as Public Works Administration Division Manager at Rate 4 in Pay Band 11. Voted in favor of Motion: Daugs, Brockus, Runyon, Flemister, Arends, Younger, Wofford, and McDonald Voted against Motion: Wheeler Motion carried: 8-Yes; 1-No 7. Discussion on Utility Rate Study “Fee Structure & Classifications” – Becky Hasart, Financial Services Director Information Only (Discussion will continue on December 12…) City Council Study Session Minutes Wednesday, November 14, 2012 Page 2 of 2 President McDonald called a recess from 5:45 to 6:10 PM; and then reopened the discussion on the Utility Rate Study... C. GENERAL COUNCIL BUSINESS General Council Business was briefly discussed. President McDonald announced that due to a lack of time, the Budget Workshop was not held tonight but the Budget Workshop scheduled after the Study Session on November 28 would still be held as scheduled. With no further business, the Council Study Session was adjourned at 7:20 PM. Prepared and Submitted by: ______________________________ CHRISTINE GRENIER Council Assistant Attest: ________________________________________ SHANNON CORIN, City Clerk ________________________________________ JIM McDONALD, City Council President JM:SC:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Study Session and Budget Workshop - November 28, 2012 COUNCIL MEETING Date: December 5, 2012 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES November 28, 2012 A Study Session of the City Council of the City of Bremerton was called to order in the Council Conference Room 603 of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, Wednesday, November 28, 2012, at 4:00 PM, with Council President Jim McDonald presiding. Council Members present were Nick Wofford, Eric Younger, Carol Arends, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs. Council Member Faye Flemister was absent. Lori Smith, Legislative Assistant, was present to provide staff support. President McDonald emphasized that the Study Session was open to the public but there would be no opportunities for input or participation; and announced that approved items by Council will be placed on the December 5, 2012 Council Meeting Agenda; or as indicated. A. NO PRESENTATIONS - The following items are budgeted items and/or have been reviewed by the appropriate Council Committee: 1. Bid Award to EC Power Systems for Emergency Generator Purchase for Fire Station #1 – Fire Chief Al Duke Consent Agenda 2. Proposed Resolution amending and reestablishing City Rates and Fees for 2013 – Becky Hasart, Financial Services Director Consent Agenda 3. Proposed Ordinance amending Section 3.86.200 of the Bremerton Municipal Code (BMC) relating to Business and Occupation (B&O) Taxes, and further amending Chapter 3.48 of the BMC (The two major changes relate to “digital goods” and confidentiality of tax returns) – Becky Hasart, Financial Services Director Consent Agenda B. FULL DISCUSSION ITEMS 4. Proposed Public Hearing and Ordinance to adopt the 2012 Comprehensive Plan Amendment Docket – Doug McIntyre and Allison Daniels, Department of Community Development Public Hearing on December 19 5. BUDGET WORKSHOP: Continued discussion on the City of Bremerton 2013 Proposed Budget – Becky Hasart, Financial Services Director; and Caroline Tompson, Budget Analyst General Business President McDonald called a recess from 5:40 to 6:10 PM; and then reopened the Budget Workshop for continued discussion... C. GENERAL COUNCIL BUSINESS General Council Business was briefly discussed. With no further business, the Council Study Session was adjourned at 7:40 PM. Prepared and Submitted by: ______________________________ LORI SMITH Legislative Assistant City Council Study Session & Budget Workshop Minutes Wednesday, November 28, 2012 Page 2 of 2 Attest: ________________________________________ SHANNON CORIN, City Clerk ________________________________________ JIM McDONALD, City Council President JM:SC:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Contract Modification No. 1 to Former Chevron Property Remediation Contract with Parametrix Study Session Date: November 14, 2012 COUNCIL MEETING Date: December 5, 2012 Department: PW&U, Engineering Presenter: Tom Knuckey Phone: 473-2376 SUMMARY: The City has completed remedial construction as required under Agreed Order DE- 07TCPHQ-5024 at the former Chevron property. The cleanup construction was completed in two phases with injection of a chemical oxidizing agent being the primary removal method in the lower yard. Per the terms of the order, the City is committed to on-going groundwater monitoring until contamination levels drop to MTCA A levels – for planning purposes this is estimated to be achieved in 5-years. The requested action is modification of the consultant contract to perform groundwater monitoring and reporting to Ecology over a 5-year term. ATTACHMENTS: 1. Council Summary; 2. Contract Modification. FISCAL IMPACTS (Include Budgeted Amount): The 2012 budget is $80,000 and the 2013 requested budget is $30,000. Projected 2013 expenditures will exceed the budget; therefore, a mid- year budget adjustment is anticipated. STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Contract Modification No. 1 to the Professional Services Agreement with Parametrix, Inc., in the amount of $225,256 (including sales tax) and authorize the Mayor to finalize and execute the document with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 Former Chevron Property Long-term Groundwater Monitoring Page 1 of 3 FORMER CHEVRON PROPERTY LONG-TERM MONITORING COUNCIL SUMMARY Background: In 2007, the City executed Agreed Order DE-07TCPHQ-5024 with Ecology for cleanup of the former Chevron property. The cleanup construction was completed in two phases; the initial phase was performed in 2009 and consisted of injection of a chemical oxidizing reagent in the lower yard (north half of the site), and excavation and removal of small contamination “hot spots” in the upper yard (south half of the site.) The second phase was performed in 2011 and consisted of injection of additional oxidizing reagent at hot spots remaining in the lower yard. The chemical injection approach was selected since the mass excavation alternative for the entire site was very expensive ($5.7M) and was only eligible for a 75% grant, compared to the selected alternative ($1.1M) which was grant funded at 90%. Ongoing Work at the Property: The injected chemicals coupled with naturally occurring bacteria will continue to reduce residual contamination at the site for years. Remaining work is limited to groundwater monitoring and reporting to track the reduction of contamination until MTCA A levels are reached – for planning purposes, it is estimated this will be achieved in 5-years. On-going groundwater monitoring was previously committed to in the initial Agreed Order and associated Remedial Investigation and Feasibility Study. Given completion of the “Interim Action” (the remediation construction), Ecology has proposed we execute a second Agreed Order for the site – this order would formalize the scope and schedule for on-going groundwater monitoring, reporting, and outline institutional controls (use restrictions) for the site. The second agreed order would also make the City eligible for grant funding under a separate remedial action grant for the first year of monitoring and reporting at the site. Existing Contract with Parametrix: In January, 2011, the City executed a contract with Parametrix for Professional Services, Field Services and Laboratory services associated with completing the remedial work described above. At the time of execution of this contract, follow-on long-term monitoring was anticipated; however, the amount of monitoring could not be quantified and so it was not included in the contract. First Agenda Bill: Contract Modification with Parametrix, Inc for Long-term Groundwater Monitoring and Reporting The consultant scope of work is to develop required reports and perform long- term groundwater monitoring until contamination levels drop to MTCA A levels. For the contract, this is estimated to be achieved in 5-years. The consultant scope includes the following:  First year (Dec 2012 – Dec 2013) – the consultant work includes work plan preparation and 2 semiannual groundwater sampling events (January Former Chevron Property Long-term Groundwater Monitoring Page 2 of 3 and July – wet and dry events) and reports submitted to Ecology; total cost is $60,000. Assuming approval of the Second Agreed Order, this work would be eligible for grant funding at 90%.  Second through fourth years (2014 - 2016) – the consultant work includes semiannual groundwater sampling events and reports; this work is not grant eligible.  Fifth year (2017) – the consultant work includes 4 quarterly groundwater sampling events and a final report; this work is not grant eligible. The initial contract was for $123,786, the proposed modification is for $225,256 for a new contract total of $349,042. Second Agenda Bill: Agreed Order with Ecology for Long-Term Monitoring and Reporting at the Former Chevron Property While the existing Agreed Order obligated the City to perform long term monitoring, the actual monitoring was not quantified (number of wells to be monitored, number of sampling events per year), and the type of institutional controls to be put on the property was not quantified. Ecology has requested the City execute a second Agreed Order on the property to formalize these issues. The advantage to the City is that upon execution of the Agreed Order, the City becomes eligible for an Ecology grant to reimburse 90% of the costs associated with the first year of monitoring, reporting, and other activities associated with the property. Financial Summary: Anticipated project costs are presented below – costs include both City labor and reimbursement of Ecology for their labor which is not grant eligible: 2012 2013 2014 2015 2016 2017 Project Cost (1) 70,500 54,500 38,500 38,500 38,500 78,500 Consultant Fee (2) 15,900 (3) 48,000 32,000 32,000 32,000 72,000 Grant Reimbursement 55,000 45,500 9-11 Committee Donation 4,500 Net Expense 11,000 9,000 38,500 38,500 38,500 78,500 Notes: (1) Project costs include an estimated $2,500 City and $4,000 Ecology costs per annum from 2013 - 2017. (2) The 2012 fee is from both the existing contract, and proposed Contract Modification. (3) Includes $6,900 in expenses from prior to amendment. Former Chevron Property Long-term Groundwater Monitoring Page 3 of 3 The expenditure forecast presented above is not consistent with the CIP and budget request due to project delays resulting from delays in receiving the Agreed Order from Ecology. A 2013 mid-year budget adjustment is anticipated to account for the projected $24,500 shortfall in expenditure authority. CONTRACT MODIFICATION 1 Project Number: CONTRACT MODIFICATION AGREEMENT NO. 1 BETWEEN THE CITY OF BREMERTON AND PARAMETRIX PROJECT Former Chevron Property Remediation CONSULTANT Parametrix, Inc. DATE December 5, 2012 THIS CONTRACT MODIFICATION AGREEMENT SPECIFICALLY AMENDS THE FORMER CHEVRON PROPERTY REMEDIATION AGREEMENT (the "Contract") entered into between the City of Bremerton and Parametrix on January 27, 2011 All provisions in the Contract shall remain in full force and effect except as expressly modified by this document. For valuable consideration and by mutual consent of the parties, the modifications to the Contract are as follows: I. Section I. Scope , is modified as follows: See Amended Scope of Work attached as Exhibit A) Section II. Term , is modified as follows: The Consultant shall complete the work described in this Contract Modification Agreement by December, 2017. Section III. Compensation , is modified as follows: The original contract amount was One Hundred Twenty Three Thousand Seven Hundred Eighty-Six Dollars ($123,786.00). The City shall pay the Consultant for the additional work described above, based on time and materials, an amount not to exceed Two Hundred Twenty Five Thousand Two Hundred Fifty-Six Dollars ($225,256.00) for a total amended contract amount of Three Hundred Forty Nine Thousand Forty-Two Dollars ($349,042.00), including this Contract Modification. II. Consultant accepts all requirements of this Contract Modification by endorsing below. Consultant further agrees that this Contract Modification constitutes full and final settlement of all of the Consultant’s claims for contract time and for all costs of any kind, including without limitation, costs of delays related to any work either covered or affected by this Contract Modification, claims related to on-site or home office overhead, or lost profits. This Contract Modification does not limit the City’s right to bring a claim for past performance. CONTRACT MODIFICATION 2 Project Number: The undersigned consultant approves the foregoing Contract Modification as to the changes, if any, in the contract price specified for each item, including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work due to said Contract Modification. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that this Contract Modification shall be effective when approved by the City of Bremerton. The parties whose names appear below warrant that they are authorized to enter into a contract modification that is binding on the parties of this contract. In addition, Consultant warrants that it has or will inform the surety of this change, and shall take appropriate action to modify any bonds required under the contract to address this change. IN WITNESS WHEREOF, the parties have executed this Contract Modification on the day and year first written above. City Engineer / Public Works Director approved to process Initials and Date CONSULTANT. THE CITY OF BREMERTON By By Patty Lent Its Its Mayor DATE: DATE: APPROVED AS TO FORM: ATTEST: Bremerton City Attorney City Clerk NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: Dave Dinkuhn Tom Knuckey, PE Senior Engineer City Engineer Parametrix City of Bremerton Engineering Department 4660 Kitsap Way, Suite A 3027 Olympus Drive Bremerton, WA 98312 Bremerton WA, 98312 360-377-0014 360-473-2376 R:\LEGAL\Contracts\FORMS\Contract Modification (2003).doc City of Bremerton 233-1896-098 Scope of Work 1 October 2012 Former Chevron Property Remediation, Amendment No. 01 EXHIBIT A – SCOPE OF WORK City of Bremerton Professional Services Agreement for Former Chevron Property Remediation Amendment No. 01 - Long Term Monitoring INTRODUCTION This Scope of Work (SOW) describes Parametrix’s proposal for five years of Long-Term Monitoring (LTM) at the Former Chevron Property. The work will be performed under Amendment No. 01 to our existing Professional Services Agreement dated January 27, 2011. The tasks described here are part of the selected cleanup action described in the Draft Cleanup Action Plan (DCAP) developed for the site in coordination with the Washington State Department of Ecology (Ecology). The LTM activities include preparation of work plans, installation and development of a new groundwater monitoring well, four years of semi-annual groundwater sampling, and one year of quarterly groundwater sampling conducted during the fifth year. Following each sampling effort, a summary technical memorandum will be prepared; a final Summary Report will be prepared at the end of the five-year monitoring period that will summarize the results of all monitoring events. We anticipate that a portion of the work described here will be funded by a Remedial Action Grant from Ecology. The grant funded work will include work plan preparation and long term monitoring for the first year. The grant application is being developed concurrently with this SOW. Parametrix shall not initiate work until the grant is approved by Ecology. If the grant is not approved, the City of Bremerton (City) shall retain right to terminate any Professional Services Agreement executed based on this SOW. TASK 1 – PROJECT MANAGEMENT AND ADMINISTRATION Goal To provide for overview and direction of task activities in a manner that allows for the delivery of the project in accordance with the scope, schedule, and budget. Approach Specific work elements will include:  A combination of in-house reviews and monthly progress reports will be used to deliver elements of work described in this Scope of Work.  Weekly calls or meetings with the City’s project manager to update progress.  Management of subcontractors. Deliverables City of Bremerton 233-1896-098 Scope of Work 2 October 2012 Former Chevron Property Remediation, Amendment No. 01 Parametrix anticipates the following work products for this task:  Routine correspondence, schedule and budget updates, and status reports on progress of work. Assumptions The task budget is based on the following assumptions:  Project management and administration tasks will be performed through the project period, which will end on October 31, 2017.  Monthly project update calls will be attended by the project manager. TASK 2 – WORK PLANS Goal Prepare project work plans as required by Ecology under the site’s Agreed Order. Approach The following activities will be performed:  The required work plans that will be prepared for the project include:  Long-Term Monitoring Sampling and Analysis Plan: Describes well installation procedures, sampling methods, analytical program, and QA/QC procedures for long-term monitoring.  Updated Public Participation and Health and Safety Plans: Updates to these existing project plans will be prepared as appropriate.  Institutional Controls Plan: Describes procedures to be implemented to protect human health and the environment at the site. Includes an Environmental Covenant to be recorded with the property title.  Final Cleanup Action Plan: We will finalize the existing Draft Cleanup Action Plan (DCAP). Following public comment, the three project plans listed above will be incorporated into the DCAP and a Final Cleanup Action Plan will be prepared. Deliverables The following deliverables will be submitted under this task:  Draft and Final Work Plans as described above. Assumptions The task budget is based on the following assumptions: City of Bremerton 233-1896-098 Scope of Work 3 October 2012 Former Chevron Property Remediation, Amendment No. 01  Sampling will be conducted in all eleven Lower Yard wells for all five years. The Sampling and Analysis Plan will include a provision allowing the City to request a reduction in the number of wells sampled and/or a reduction in the number of analyses performed. Such request would require justification based on the results of the preceding long-term monitoring results.  Up to two 2-hour meetings will be held with the City and Ecology via telephone to discuss approaches and comments to the draft work plans.  Draft work plans will be submitted electronically in PDF format. Two hardcopies of final plans will be submitted to Ecology and one hardcopy will be submitted to the City. Final hardcopy submittals will include a CD with electronic copies in PDF format. TASK 3 – LTM FIELD WORK AND REPORTING Goal To complete the required LTM sampling and reporting in accordance with the Sampling and Analysis Plan. Approach The following activities will be performed:  Installation and development of a new monitoring well (MW20R) downgradient of existing well MW27 and cross gradient of MW09R. The purpose of the new well will be to assess the extent of the contaminated groundwater plume in this area and will represent a conditional point of compliance. Development will be accomplished by surging and over pumping.  Collection of four years of semi-annual rounds (eight field events) of groundwater samples from eleven wells. Following the initial four-year monitoring period, one year of quarterly groundwater samples (four field events) will be collected from the same eleven wells.  Additional survey effort to map the elevation of the new well.  Following each LTM sampling effort, the results will be presented in a technical memorandum with supporting tables and figures as appropriate. Deliverables The following deliverables will be submitted under this task:  Technical memoranda following each monitoring event. Assumptions The task budget is based on the following assumptions:  Well installation and development can be accomplished by one field staff in two 8-hour days. City of Bremerton 233-1896-098 Scope of Work 4 October 2012 Former Chevron Property Remediation, Amendment No. 01  Each sampling effort can be accomplished by one field staff in three 10-hour days.  Development and purge water from the wells will be disposed of at the City’s WWTP using a City vactor truck.  The LTM sampling results memoranda will be prepared within six weeks of completion of each groundwater monitoring event for City review and submittal to Ecology.  The draft results memoranda will be submitted electronically in PDF format to the City for review. Two hardcopies of the final documents will be submitted to Ecology and one hardcopy will be submitted to the City. Final hardcopy submittals will include a CD with an electronic copy of the final documents in PDF format. Laboratory Data will be provided to Ecology in Environmental Information Management (EIM) format. TASK 4 – FIVE-YEAR SUMMARY MONITORING REPORT Goal To compile and report the results of the five-year monitoring program and verify that natural attenuation continues to occur at the site or to demonstrate that cleanup levels have been met. Approach The following activities will be performed:  Preparation of a summary report describing the results of the first five years of the LTM program, including supporting figures and tables and any proposed changes to the monitoring program. Deliverables The following deliverables will be submitted under this task:  Draft and Final Five-Year Summary Report Assumptions The task budget is based on the following assumptions:  One face-to-face 4-hour meeting will be held with Ecology and/or the City to discuss and finalize the Five-Year Summary Report.  A single round of comments each from the City and Ecology will be required to finalize the Five- Year Summary Report.  The Five-Year Summary Report will be submitted electronically in PDF format. Two hardcopies of the final documents will be submitted to Ecology and one hardcopy will be submitted to the City. Final hardcopy submittals will include a CD with an electronic copy of the final documents in PDF format. Laboratory Data will be provided to Ecology in EIM format. City of Bremerton 233-1896-098 Scope of Work 1 October 2012 Former Chevron Property Long-Term Monitoring EXHIBIT B Schedule Work Element Completed By Notice to Proceed December 17, 2012 Draft Work Plans December 31, 2012 Final Work Plans January 2013 1st Semi-Annual Groundwater Sampling Event January 2013 2nd Semi-Annual Groundwater Sampling Event July 2013 3rd Semi-Annual Groundwater Sampling Event January 2014 4th Semi-Annual Groundwater Sampling Event July 2014 5th Semi-Annual Groundwater Sampling Event January 2015 6th Semi-Annual Groundwater Sampling Event July 2015 7th Semi-Annual Groundwater Sampling Event January 2016 8th Semi-Annual Groundwater Sampling Event July 2016 1st Quarterly Groundwater Sampling Event October 2016 2nd Quarterly Groundwater Sampling Event January 2017 3rd Quarterly Groundwater Sampling Event April 2017 4th Quarterly Groundwater Sampling Event July 2017 Draft 5-Year Summary Monitoring Report August 2017 Final 5-Year Summary Monitoring Report September 2017 Project Close Out October 2017 City of Bremerton 233-1896-098 Scope of Work 1 October 2012 Former Chevron Property Long-Term Monitoring EXHIBIT C Budget Task 1 Project Management and Administration ......................................................................... $9,296 Task 2 Work Plans .................................................................................................................... $18,692 Task 3 Long-Term Monitoring Activities ................................................................................ $186,656 Task 4 Five-Year Summary Monitoring Report ........................................................................ $10,612 TOTAL ....................................................................................................................... $225,256 NOTES: The estimated fees shown above were determined on a cost plus multiplier basis; these fees shall not be exceeded without prior written approval by the City. Personnel hourly rates shall be determined as follows: Direct salary x 3.1 not to exceed $150.00. Subconsultants, sampling supplies, and equipment rental shall be subject to a 5 percent markup. Total estimated costs reflect an anticipated 3 percent annual escalation. A breakdown of costs is provided in the attached budget spreadsheet. Client: City of BremertonProject: Former Chevron Prop ‐ Long Term MonitoringBUDGET DETAILSr ConsultantSr EngineerHydrogeologist IIIBremerton Support ServiceCADD SupervisorPuyallup WordprocessingBremerton Survey CrewCorp Finance Project AccountantBurdened Rates: $150.00 $136.83 $92.97 $66.77 $97.34 $62.00 $167.40 $82.15Phase Task DescriptionLabor Dollars Labor Hours01 Project Management $8,771 68 8 303001   PM $8,771 68 8 303002 Work Plans $17,504 176 48 76 16 14 2201   Long Term Mon Plan $4,797 50 8 28 4 6 402   Update PPP & HASP $3,683 40 4 24 4 4 403   Institutional Control Plans $4,283 34 28 2 2 204   Final Cleanup Action Plan $4,741 52 8 24 6 2 1203 LTM Activities $93,328 892 62 676 76 36 36 601   Install 1 New Well & Develop $4,148 40 2 28 4 602   LTM Groundwater Sampling $89,180 852 60 648 72 36 3604 Five Year LTM Report $9,868 88 8 12 44 8 8 801   Report $9,868 88 8 12 44 8 8 8Hour Totals1,224 16 152 796 100 58 66 6 30Escalation Amt: $12,385 $309 $1,817 $8,328 $695 $555 $364 $0 $318Labor Totals: $129,471 $2,709 $22,615 $82,332 $7,372 $6,201 $4,456 $1,004 $2,782DIRECT EXPENSES:AmountDescriptionAmount$2,100 B & W 8.5 x 11 $299$71,443 Color 11 x 17 $52$179 55 Gallon Drums $74$73,722Allocated Expenses (6% of Labor) $7,768Filters $2,079Genarator Rental $105Horiba Rental $2,993Peristaltic Pump Rental $2,835PPE $420Pump Tubing $1,260Shipping $3,969Waterra Rental $210Expense Total: $22,063$225,256Applied Professional Services, Inc.Subconsultant Total:Project Total:ESN NorthwestSUBCONSULTANTSSubconsultant NameOnSite Environmental, Inc.March 19, 2012 Current:10/18/2012 2012 2013 2014 2015 2016 2017 Expenditures Expenditures as of 9/13/12 $17,849 Soil Stabilization Construction $38,500 PMX Amendment; 6/21/12 - 12/31/12 $9,000 Ecology; 9/14/12 - 12/31/12 $2,500 COB; 10/12/12 - 12/31/12 $2,500 Consultant Fee $48,000 $32,000 $32,000 $32,000 $72,000 Ecology $4,000 $4,000 $4,000 $4,000 $4,000 COB $2,500 $2,500 $2,500 $2,500 $2,500 Total Expenditure $70,349 $54,500 $38,500 $38,500 $38,500 $78,500 Revenue RA Grant (Note 1)$54,969 $45,450 9-11 Memorial Donation $4,500 Total Revenue $59,469 $45,450 $0 $0 $0 $0 NET FUND EXPENSE $10,880 $9,050 $38,500 $38,500 $38,500 $78,500 Note 1 - The Oct, 2012 +/- amendment to the grant adds a long-term monitoring task, but doesn't add additional grant dollars. The avail- able grant amount as of 1/1/2012 was $101,204 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Agreed Order with Ecology for Long-Term Monitoring and Reporting at the Former Chevron Property Study Session Date: November 14, 2012 COUNCIL MEETING Date: December 5, 2012 Department: PW&U Engineering Presenter: Tom Knuckey Phone: 473-2376 SUMMARY: The City has completed remedial construction as required under Agreed Order DE- 07TCPHQ-5024 at the former Chevron property. Per the terms of the order, the City is committed to on-going groundwater monitoring until contamination levels drop to MTCA A levels – for planning purposes this is estimated to be achieved in 5-years. Ecology has requested the City execute a second Agreed Order (DE-12TCPHQ-9509) which quantifies monitoring and reporting requirements. The second Agreed Order makes the City eligible to expend grant funds for the first year of monitoring. The requested action is approval of Agreed Order DE-12TCPHQ-9509. ATTACHMENTS: 1. Council Summary; 2. Agreed Order. FISCAL IMPACTS (Include Budgeted Amount): The 2012 budget is $80,000 and the 2013 requested budget is $30,000. Projected 2013 expenditures will exceed the budget; therefore, a mid- year budget adjustment is anticipated. STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Agreed Order DE-12TCPHQ-9509 and authorize the Mayor to finalize and execute the document with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 Former Chevron Property Long-term Groundwater Monitoring Page 1 of 3 FORMER CHEVRON PROPERTY LONG-TERM MONITORING COUNCIL SUMMARY Background: In 2007, the City executed Agreed Order DE-07TCPHQ-5024 with Ecology for cleanup of the former Chevron property. The cleanup construction was completed in two phases; the initial phase was performed in 2009 and consisted of injection of a chemical oxidizing reagent in the lower yard (north half of the site), and excavation and removal of small contamination “hot spots” in the upper yard (south half of the site.) The second phase was performed in 2011 and consisted of injection of additional oxidizing reagent at hot spots remaining in the lower yard. The chemical injection approach was selected since the mass excavation alternative for the entire site was very expensive ($5.7M) and was only eligible for a 75% grant, compared to the selected alternative ($1.1M) which was grant funded at 90%. Ongoing Work at the Property: The injected chemicals coupled with naturally occurring bacteria will continue to reduce residual contamination at the site for years. Remaining work is limited to groundwater monitoring and reporting to track the reduction of contamination until MTCA A levels are reached – for planning purposes, it is estimated this will be achieved in 5-years. On-going groundwater monitoring was previously committed to in the initial Agreed Order and associated Remedial Investigation and Feasibility Study. Given completion of the “Interim Action” (the remediation construction), Ecology has proposed we execute a second Agreed Order for the site – this order would formalize the scope and schedule for on-going groundwater monitoring, reporting, and outline institutional controls (use restrictions) for the site. The second agreed order would also make the City eligible for grant funding under a separate remedial action grant for the first year of monitoring and reporting at the site. Existing Contract with Parametrix: In January, 2011, the City executed a contract with Parametrix for Professional Services, Field Services and Laboratory services associated with completing the remedial work described above. At the time of execution of this contract, follow-on long-term monitoring was anticipated; however, the amount of monitoring could not be quantified and so it was not included in the contract. First Agenda Bill: Contract Modification with Parametrix, Inc for Long-term Groundwater Monitoring and Reporting The consultant scope of work is to develop required reports and perform long- term groundwater monitoring until contamination levels drop to MTCA A levels. For the contract, this is estimated to be achieved in 5-years. The consultant scope includes the following:  First year (Dec 2012 – Dec 2013) – the consultant work includes work plan preparation and 2 semiannual groundwater sampling events (January Former Chevron Property Long-term Groundwater Monitoring Page 2 of 3 and July – wet and dry events) and reports submitted to Ecology; total cost is $60,000. Assuming approval of the Second Agreed Order, this work would be eligible for grant funding at 90%.  Second through fourth years (2014 - 2016) – the consultant work includes semiannual groundwater sampling events and reports; this work is not grant eligible.  Fifth year (2017) – the consultant work includes 4 quarterly groundwater sampling events and a final report; this work is not grant eligible. The initial contract was for $123,786, the proposed modification is for $225,256 for a new contract total of $349,042. Second Agenda Bill: Agreed Order with Ecology for Long-Term Monitoring and Reporting at the Former Chevron Property While the existing Agreed Order obligated the City to perform long term monitoring, the actual monitoring was not quantified (number of wells to be monitored, number of sampling events per year), and the type of institutional controls to be put on the property was not quantified. Ecology has requested the City execute a second Agreed Order on the property to formalize these issues. The advantage to the City is that upon execution of the Agreed Order, the City becomes eligible for an Ecology grant to reimburse 90% of the costs associated with the first year of monitoring, reporting, and other activities associated with the property. Financial Summary: Anticipated project costs are presented below – costs include both City labor and reimbursement of Ecology for their labor which is not grant eligible: 2012 2013 2014 2015 2016 2017 Project Cost (1) 70,500 54,500 38,500 38,500 38,500 78,500 Consultant Fee (2) 15,900 (3) 48,000 32,000 32,000 32,000 72,000 Grant Reimbursement 55,000 45,500 9-11 Committee Donation 4,500 Net Expense 11,000 9,000 38,500 38,500 38,500 78,500 Notes: (1) Project costs include an estimated $2,500 City and $4,000 Ecology costs per annum from 2013 - 2017. (2) The 2012 fee is from both the existing contract, and proposed Contract Modification. (3) Includes $6,900 in expenses from prior to amendment. Former Chevron Property Long-term Groundwater Monitoring Page 3 of 3 The expenditure forecast presented above is not consistent with the CIP and budget request due to project delays resulting from delays in receiving the Agreed Order from Ecology. A 2013 mid-year budget adjustment is anticipated to account for the projected $24,500 shortfall in expenditure authority. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5199 to repeal Ch. 2.34 of the Bremerton Municipal Code (BMC) regarding the Gold Mountain Complex Board of Directors Study Session Date: November 14, 2012 COUNCIL MEETING Date: December 5, 2012 Department: Parks and Rec. Presenter: Wyn Birkenthal Phone: 473-5752 SUMMARY: The advent of the Council’s Public Safety and Parks Committee and the change to consolidated management of the Gold Mountain Golf Complex no longer require the separate committee known as the Gold Mountain Board of Directors. ATTACHMENTS: Ordinance No. 5199 FISCAL IMPACTS (Include Budgeted Amount): Time savings from Parks, Public Works, Finance and Golf course contracted management staff STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No.5199 repealing chapter 2.34 of the BMC related to the Gold Mountain Golf Complex Board of Directors. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 1 Gold Mountain Golf Complex Board of Directors - Repealed ORDINANCE NO. 5199 AN ORDINANCE of the City Council of the City of Bremerton, Washington, repealing Chapter 2.34 of the Bremerton Municipal Code entitled “Gold Mountain Golf Complex Board of Directors.” WHEREAS, the current provisions of Chapter 2.34 of the Bremerton Municipal Code relating to the Gold Mountain Golf Complex Board of Directors are no longer required due to the upcoming change in management of the golf course; and WHEREAS, the Public Safety & Parks Committee is an appropriate forum for reviewing the operations of the golf course; and WHEREAS, the City Council desires to repeal in its entirety Chapter 2.34 of the Bremerton Municipal Code relating to the Gold Mountain Golf Complex Board of Directors; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.34 of the Bremerton Municipal Code entitled "Gold Mountain Golf Complex Board of Directors" is hereby repealed in its entirety: Chapter 2.34 GOLD MOUNTAIN GOLF COMPLEX BOARD OF DIRECTORS 2.34.010 ESTABLISHED. There is established a Gold Mountain Golf Complex Board of Directors, hereinafter referred to as "Board," which shall act as an advisory body to the Director of Parks and Recreation, Mayor, and City Council. 2.34.020 MEMBERSHIP AND TERMS OF OFFICE. (a) The Board shall consist of ten (10) members with six (6) voting members and four (4) ex officio, nonvoting members as follows: (1) Two (2) Council members appointed by the Council President; (2) The Director of Parks and Recreation; (3) The Director of Public Works and Utilities; (4) The Director of Financial Services; (5) The City Forestry Manager; (6) The Golf Contract Administrator (ex officio, nonvoting); (7) The two (2) golf professionals (ex officio, nonvoting); and (8) The Greens Superintendent (ex officio, nonvoting). 2 Gold Mountain Golf Complex Board of Directors - Repealed (b) The Board members shall remain seated until resignation or until removed by the City Council. Members of the Board serve at the pleasure of the City Council and may be removed by the City Council at any time. (c) The positions assigned and the number of members constituting the Board membership as set forth herein may be reassigned and reconstituted by the City Council at any time without further amendment to this chapter. 2.34.030 SALARIES AND PERSONAL EXPENSES. The members of the Board shall receive no salaries or other remuneration for their services in such capacity, but shall be entitled to reimbursement of expenses incurred by them in the discharge of their official duties as may be authorized by city policy. 2.34.040 MEETINGS. The Board shall establish a regular meeting day and time for its Board meetings. The Director of Parks and Recreation, or his or her designee, shall serve as Chair of the Board. A majority of the full membership shall constitute a quorum for conducting business. Any action to be taken by the Board shall require the concurrence of a simple majority of the members of the Board qualified to vote. 2.34.050 DUTIES AND RESPONSIBILITIES. The Board shall have the following duties and responsibilities: (a) To set administrative policies and rules for the operation of the Gold Mountain Golf Complex; (b) To recommend fee structures and annual budget to the City Council for approval; and (c) To submit reports to the City Council as requested by the Council regarding all activities of the Board. 2.34.060 RULES AND PROCEDURES. The Board may establish rules and procedures for conducting business. SECTION 2. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the___________ day of ____________________, 2012 _________________________________ JIM McDONALD, Council President 3 Gold Mountain Golf Complex Board of Directors - Repealed Approved this ________ day of ________________________, 2012 _________________________________ PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ ________________________________ SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the________ day of ______________________, 2012 EFFECTIVE the_________day of ______________________, 2012 ORDINANCE NO. ____________ R:\Legal\Legal\Ordinances\Parks\BMC 2.32 Gold Mountain Board of Directors-repealed.doc AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Adopt Kitsap Regional Coordinating Council Interlocal Agreement 2012 Amendments Study Session Date: 11/14/2012 COUNCIL MEETING Date: 12/05/2012 Department: KRCC Presenter: Mary McClure Phone: SUMMARY: This is a housekeeping item. The Kitsap Regional Coordinating Council (KRCC) Interlocal Agreement from 2001 has a provision the agreement will be reviewed by legal counsel every 10 years. KRCC has complied with this provision and proposes revisions to the Interlocal Agreement through a 2012 Amendment. ATTACHMENTS: 2012 KRCC proposed revisions to the ILA. FISCAL IMPACTS (Include Budgeted Amount): None STUDY SESSION AGENDA: ☐ No Discussion ☒ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to adopt the proposed amendments to the Kitsap Regional Coordinating Council Interlocal Agreement and authorize the Mayor to finalize and execute the amendment with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 2012 Amendments 1 KITSAP REGIONAL COORDINATING COUNCIL INTERLOCAL AGREEMENT THIS AGREEMENT is made and entered into by and between the undersigned parties pursuant to provisions of the Interlocal Cooperation Act of 1967, Chapter 39.34 RCW. WHEREAS, the undersigned members recognize the need and desirability to participate in a forum for intergovernmental coordination, cooperation, and consultation among member agencies in order to bring about a continuous and comprehensive regional planning process and efficient service delivery; and WHEREAS, the undersigned members desire jointly to undertake continuous, cooperative study and planning of regional and governmental issues of mutual interest, including but not limited to development, land use, housing, capital facilities, service, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation, transportation planning, and economic development; and WHEREAS, it is the belief of the undersigned members that regional deliberations, planning, and review can best be achieved with the creation of a separate legal entity whose function and activities are subject to policy direction from the undersigned member agencies according to the provisions of this Agreement; and WHEREAS, the State Growth Management Act (GMA) requires local jurisdictions to coordinate and ensure consistency when developing comprehensive land use plans and the undersigned members desire to establish the Kitsap Regional Coordinating Council as a separate legal entity to facilitate coordination and consistency of comprehensive land use plans as required by the GMA; and WHEREAS, the undersigned members desire to use the Kitsap Regional Coordinating Council for developing County-wide Planning Policies (CPPs) under the GMA as a framework to guide Kitsap County and cities situated within the County in developing their comprehensive land use plans. THEREFORE, in consideration of mutual promises and covenants herein it is hereby agreed: I. NAME This Agreement establishes the KITSAP REGIONAL COORDINATING COUNCIL (“Council”), a separate legal entity since 2001. II. DURATION The Agreement shall remain in force and effect perpetually or until terminated by majority vote of the member agencies. Kitsap Regional Coordinating Council 2012 Amendments 2 III. DEFINITIONS For the purpose of this Interlocal Agreement, the following terms have the meaning prescribed to them in this section unless the context of their use dictates otherwise: A. “Member agency” means a voting and dues paying municipal or other government entity located within Kitsap County which is a party to this Agreement. B. “State” means the State of Washington. C. “Region” means the territory physically lying within the boundaries of Kitsap County. D. “Kitsap Regional Coordinating Council” or “Council” means the separate legal entity established by this Agreement to represent member agencies to carry out those powers and managerial and administrative responsibilities delegated pursuant to the provisions of this Agreement. E. “Majority vote” means more than one-half of the votes cast when a quorum is present and must include a majority of votes from County commissioners and a majority of votes from the representatives of at least two separate cities. F. “Executive Board” shall mean the representatives of member agencies of the Kitsap Regional Coordinating Council identified in Article IV.B. of this Agreement. G. “Cost Allocation” means annual dues (the annual allocation among Member agencies of the cost of Council operations determined by the Executive Board for the purposes of calculating members’ obligations to contribute to the funding of Council operations for the year, and for the purposes of calculating obligations and distributions in the event of withdrawal or termination). H. “Ex Officio Member” means a non-voting, non-dues paying member of the Council. I. “Two-thirds majority vote” means a majority vote and also requires a majority of votes from County commissioners and a majority of votes from the representatives from at least two separate cities. J. “Associate Member” means a member of the Council which is not a party to this Agreement and who enters into a separate agreement with the Council that establishes the Associate Member’s level of participation in Council activities. K. “Executive Director” is the person appointed by the Executive Board to accomplish the work plan developed by the Executive Board. 2012 Amendments 3 IV. MEMBERSHIP AND REPRESENTATION A. Membership. Membership (except for Associate Members and Ex Officio Members) is established by execution of this Agreement and payment of any required cost allocation as established by the Executive Board. B. Executive Board. The Executive Board is comprised of the following representatives of member agencies: 1. County Government: three (3) members of the Kitsap County Board of Commissioners; 2. City Governments: a. The Mayor of each city having a population of 10,000 persons or less; b. The Mayor and one (1) member of the City Council of each city having a population between 10,001 persons and 30,000 persons; c. The Mayor and two (2) members of the City Council of each city having a population greater than 30,000 persons; d. A city with a Council/Manager form of government may select one (1) member of the City Council instead of a Mayor. The number of additional City Council members representing the city shall be as described in 2(a-c) above. 3. Port of Bremerton: one (1) representative consisting of a Port Commissioner. 4. City Council, and Port of Bremerton representatives may be selected by whatever means established by each specific member agency for a two (2) year term. C. The determination of the population of cities will be the most recent annual population estimate of cities and towns prepared by the Washington State Office of Financial Management. D. A municipal or government entity or a federally recognized Indian Tribe that desires to become a member of the Council must obtain permission to do so by majority vote of the Executive Board. The required permission applies to any entity that wishes to become a Member or Ex Officio Member. A municipal or government entity or a federally recognized Indian tribe that wishes to become an Associate Member must obtain permission to do so by a majority vote of the Executive Board, and must present a draft agreement for the Executive Board’s consideration, establishing the proposed terms, duties, powers and privileges for Associate Member status. 2012 Amendments 4 V. POWER, AUTHORITY, AND PURPOSE This Agreement does not confer additional substantive powers or authorities on member agencies. The powers and authorities conferred herein are limited to the powers that each member agency is authorized by law to perform. The Council has the following power, authority, and purpose: A. Provide a regional forum for regional deliberations and cooperative decision- making by the region’s elected officials in order to bring about a continuous and comprehensive planning process, and foster cooperation and mediate differences among governments throughout the region. B. Consistent with the GMA, coordinate and ensure consistency when developing comprehensive land use plans. C. Consistent with the GMA, develop CPPs to be used as a framework to guide the County and the Cities in developing their comprehensive land use plans; D. Coordinate actions to provide for the distribution of state and federal grant funds, including but not limited to federal transportation funding, community development block grants, and low income housing grants. E. Undertake continuous, cooperative study and planning of regional and governmental problems of mutual interest, including but not limited to development, land use, housing, capital facilities, services, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation and transportation planning. F. Coordinate actions to provide for a sustainable economy and environment for the region. G. Carry out such other planning and coordinating activities authorized by majority vote of the Council including participation in other forums and organizations. H. Establish Bylaws, to be amended from time to time, that govern the procedures of the Council. The Bylaws, as may be amended, are incorporated into this Agreement by this reference as if fully set forth herein. I. Appoint the Executive Director. I.J Contract for administrative services and Enter enter into other agreements as deemed appropriate and/or necessary to implement this Agreement. J K. Purchase, receive, lease, take by gift, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of the Council. 2012 Amendments 5 K L. Sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of its property and assets. L.M Sue and be sued, complain and defend, in all courts of competent jurisdiction in the Council’s name. M.N. To engage in any other activity necessary to further the Council goals and purposes to the extent authorized by chapter 39.34 RCW. N.O. Apply for such federal, state, or private funding of any nature as may become available to assist the organization in carrying out its purposes and functions. O.N Identify and examine issues relating to such as governance, growth policies, development standards, service provision, revenue-cost sharing and municipal annexations in urban growth areas. P.O. Strive to represent the consensus of views on growth management and planning issues among member agencies. The Council makes recommendations on behalf of those jurisdictions to multi-county regional agencies and State government on behalf of member agencies, on proposed changes to multi-county regional plans, state plans and laws. Q.P Represent the views or position of member agencies within the County on issues of consistency or the resolution of conflicts related to the multi-county regional growth strategy and transportation plan. R.Q. Make appointments to committees and boards of multi-county regional organizations (e.g. Puget Sound Regional Council, Peninsula Regional Transportation Planning Organization) where appointments are requested to represent more than one member agency of the Council. Members appointed to such committees and boards shall represent the consensus of the views of the Council. If consensus is not reached on a particular issue, the members appointed to such committees and boards shall represent the majority and minority views of the Council, in order to accurately portray the status of discussions on that issue. T. Employ personnel, adopt personnel policies, terminate personnel, and all other associated powers necessary for and relevant to employment matters. S.U Review the this interlocal Interlocal agreement Agreement no fewer than every 10 years with the assistance of legal counsel. VI. FINANCING A. Cost Allocation. All members shall pay the annual cost allocation as described in the Bylaws. If payment by a member is not paid timely after notice of the cost allocation is received, the member is subject to having its membership status revoked by majority vote of the Executive Board. 2012 Amendments 6 B. Local Government Accounting. All services and transfers of property to the Kitsap Regional Coordinating Council shall be paid and accounted for in accordance with RCW 43.09.210. VII. FISCAL YEAR AND BUDGET A. The Fiscal Year. The fiscal year shall coincide with the calendar year. B. Adoption of Budget. By September of each year the Executive Board shall adopt a draft annual work program, budget, and cost allocation for the ensuing fiscal year that identifies anticipated activities, goals, revenues, and expenditures for completing the work program. The final work program, budget, and cost allocation for the ensuing year shall be adopted by the Executive Board no later than November of each year. After the Council has approved the final budget it is forwarded to the County for inclusion as a distinct agency fund within the Kitsap County Budget. No increase or decrease to the final budget shall occur without the approval of the Executive Board. C. Notice of Budget. On or before September 30, the Executive Board shall provide written notice of the ensuing year’s draft budget, work plan, and cost allocation to the designated representative(s) of each member agency. On or before November 30, the Executive Board shall provide written notice of the final budget, work plan, and cost allocation adopted for the ensuing fiscal year to the designated representative(s) of each member agency. D. Accounting, Budgeting, and Reporting. The Council shall be subject to the Budgeting Accounting & Reporting System (BARS) applicable to Category 1 local governments. E. Fiscal Agent. Kitsap County shall be the fiscal agent for the Council. After approved by the Executive Board, the Executive Board shall forward the final budget to the County for inclusion as a distinct agency fund within the Kitsap County Budget known as the Operating Fund of Kitsap Regional Coordinating Council. The Council may retain a fiscal agent. The fiscal agent may be a member agency who shall serve and be subject to removal, pursuant to the terms and conditions as established by agreement between the fiscal agent and the Council. F. Contracting. All contracts made by or on behalf of the Council shall be in accordance with state law, including, but not limited to: Chapter 39.04 RCW, and Chapter 42.23 RCW, and Chapter 42.24 RCW. VIII. WITHDRAWAL FROM AGREEMENT Any member agency has the right to withdraw from this Interlocal Agreement by giving the Executive Board six (6) months prior written notice. Unless otherwise provided by future agreement, any member agency that withdraws shall remain responsible for its financial and other obligations with regard to Council activities until the effective date of withdrawal and with regard to agreements to which the Council is a party and which exist at the time of such notice of withdrawal. Withdrawal by one member agency to this Interlocal Agreement shall not terminate the Agreement as to any other remaining member agencies. Except as provided in Article IX of this Agreement, any member agency that withdraws from this Agreement forfeits any rights it 2012 Amendments 7 may have to the Council’s assets; provided, however, such forfeiture shall not take effect if the Council dissolves within one (1) year of the date of the withdrawal notice. IX. DISPOSAL OF ASSETS Upon dissolution of the Council, any Council assets, after payment of all liabilities, costs, expenses, and charges validly incurred under this Agreement, shall be distributed to member agencies which are members of the Council on the date of dissolution. Distribution of assets shall be in proportion to the funding formula for cost allocation as described in the Bylaws, in accordance with Article VI.B. of the Agreement, and existing at the time of dissolution. The debts, liabilities, and obligations of the Council shall not constitute a debt, liability, or obligation of any member agency. If assets cannot reasonably be distributed in proportion to the funding formula, the Council shall declare the assets to be surplus, and shall offer the assets for sale according to the requirements of chapter 43.19 RCW, and shall distribute the proceeds from the sale in proportion to the funding formula established by the Executive Board in accordance with Article VI.B. of this Agreement. X. LIABILITY AND INSURANCE A. Any loss or liability to third parties resulting from negligent acts, errors, or omissions of the Council, Member agencies (excluding Associate Members), Ex Officio Members, and/or employees while acting within the scope of their authority under this Agreement shall be borne by the Council exclusively, and the Council shall defend such parties, at its cost, upon request by the member agency, ex officio agency, and/or employee. B. The Executive Board shall obtain commercial general liability, and auto liability insurance coverage for the Council, Executive Board, and any staff employed by the Council, at levels no less than $1 million single occurrence and $2 million aggregate for each type of liability that is insured. The policy shall name each member agency, and their respective elected officials, officers, agents, and employees as additional insured’s. The Executive Board shall annually evaluate the adequacy of the Council’s insurance coverage. C. The Executive Board shall require that all contractors and subcontractors utilized by the Council obtain insurance coverage consistent with Article X.B. XI. LEGAL REPRESENTATION The Council may retain legal counsel. Legal counsel may be an employee of a member agency, an outside entity, or an individual. In the event of a conflict of interest, the Council may retain substitute or additional legal counsel. The Kitsap County Prosecuting Attoney’s Office shall provide day-to-day legal advice and act as legal counsel for the Council and its appointees: provided that in the event a conflict exists between the Council and its appointees and any other client represented by the Prosecutor’s Office, then the Bremerton City Attorney’s Office shall provide such representation; and provided further that in the event a conflict exists between the Council and its appointees and both a client represented by the Prosecutor’s Office and a client represented by the Bremerton City Attorney’s Office, then the attorney for the Cities of Bainbridge Island, Port Orchard, or Poulsbo shall provide such representation; and provided further that in the event a conflict exists between the Council and its appointees and a client 2012 Amendments 8 represented by the Prosecutor’s Office, and a client represented by the attorneys of the cities, the Council may retain outside legal counsel in that matter only. Additionally, and regardless of whether a conflict of interest exists as described in the preceding sentence, the Council may retain outside legal counsel concerning any matter the Council deems appropriate. Retained counsel shall serve, and be subject to removal, pursuant to the terms and conditions established by agreement between legal counsel and the Council. An adjustment in cost allocation to Members will be made if the Council retains outside legal counsel. XII. ENTIRE AGREEMENT This Agreement supersedes all previous Kitsap Regional Coordinating Council interlocal agreements and all prior discussions, representations, contracts, and/or agreements between the parties relating to the subject matter of this Agreement and constitutes the entire contract between the parties. XIII. MODIFICATION Except as provided by Article XIX, the terms of this Agreement shall not be altered or modified unless agreed to in writing by all member agencies and such writing shall be executed with the same formalities as are required for the execution of this document. XIV. WAIVER The failure of any party to insist upon strict performance of any of the terms and conditions of this Agreement shall not be construed to be a waiver or relinquishment of same, but the same shall be and remain in full force and effect. XV. NOTICE Except as provided in Article XVIII of this Agreement, any notice required by this Agreement shall be made in writing to the representative(s) identified in Article IV.B. of this Agreement with a copy of such notice provided to the Executive Director. Notice is effective on the third day following deposit with the U.S. Postal Service, regular mail. XVI. SEVERABILITY If any of the provisions of this Agreement are held illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect. XVII. CHOICE OF LAW AND VENUE This Agreement shall be governed by the laws of the State of Washington, both as to its interpretation and performance. Any action at law, suit in equity, or other judicial proceeding arising in connection with this Agreement may be instituted and maintained only in a court of competent jurisdiction in Kitsap County, Washington. 2012 Amendments 9 XVIII. CLAIMS A. Any claim for damages made under chapter 4.96 RCW shall be filed with the Chair of the Kitsap Regional Coordinating Council, c/o the Clerk of the Kitsap County Board of Commissioners, 614 Division Street, MS-4, Port Orchard, Washington, 98366. B. Upon receipt of a claim for damages, or any other claim, a copy of the claim will be provided by the Clerk of the Board to the Executive Director and to each member of the Executive Board. XIX. EXECUTION AND FILING A. Counterparts. The parties agree that there shall be multiple original signature pages of this Agreement distributed for signature by the necessary officials of the parties. Upon execution, the executed original signature pages of this Agreement shall be returned to the Clerk of the Kitsap County Board of Commissioners, who shall file an executed original of this Agreement with the Kitsap County Auditor. The Clerk of the Board shall distribute duplicate conformed copies of the Agreement to each of the parties. Parties that sign on as Members at a later date will provide original signature pages of this Agreement to the Clerk of the Kitsap County Board of Commissioners, who shall file the signature pages provided with the Kitsap County Auditor. The Clerk of the Board shall distribute duplicate conformed copies of the signature pages filed later, to each of the parties. Addition of parties at a later date will not constitute a modification under Section XIII of this Agreement. B. Later Approval and Filing. Later approval and filing of this Agreement by additional parties as set forth in Article IV, Section D, shall be deemed an authorized amendment to the Agreement already on file with the Kitsap County Auditor, without the need for reconsideration and approval by parties that have already approved and executed the Agreement. XX. EFFECTIVE DATE This Agreement shall go into effect among and between the parties upon its execution by all of the parties, as evidenced by the signatures and dates affixed below and upon its filing with the County Auditor as provided in Article XIX. IN WITNESS WHEREOF, this Agreement has been executed by each party on the date set forth below: Executed this ___ day of _______________, 2012. CITY OF BAINBRIDGE ISLAND Debbi Lester, Mayor 2012 Amendments 10 Executed this ___ day of _______________, 2012. CITY OF BREMERTON Patty Lent , Mayor Executed this ___ day of _______________, 2012. CITY OF PORT ORCHARD Tim Matthes, Mayor Executed this ___ day of _______________, 2012. CITY OF POULSBO Becky Erickson, Mayor Executed this ___ day of _______________, 2012. PORT OF BREMERTON Larry Stokes, President Executed this ______ day of __________________, 2012. ATTEST: KITSAP COUNTY BOARD OF COMMISSIONERS ROBERT GELDER, Chair CHARLOTTE GARRIDO, Commissioner Dana Daniels, Clerk of the Board JOSH BROWN, Commissioner 2012 Amendments 11 APPROVED AS TO FORM: Bainbridge Island City Attorney Bremerton City Attorney Port Orchard City Attorney Poulsbo City Attorney Port of Bremerton Attorney Deputy Prosecuting Attorney for Kitsap County AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Bid Award – Emergency Generator Purchase for Fire Station #1, State of Washington Contract with EC Power Systems. Study Session Date: November 28, 2012 COUNCIL MEETING Date: December 5, 2012 Department: PW&U Presenter: Chal Martin Phone: 473-5315 SUMMARY: The bid process was conducted by the State of Washington Department of Enterprise Services, State Contract #21403, for the purchase of a 400 kW generator set, transfer switch and accessories. Lowest bidder was EC Power Systems in Auburn, Washington. ATTACHMENTS: State of Washington Contract Generator Specifics. FISCAL IMPACTS (Include Budgeted Amount): The general fund does have money to be able to purchase this item. However, as it was not part of the originally adopted 2012 budget, it will require a budget amendment as part of the annual amendment done in December. STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a 400 kW generator set, transfer switch and accessories from EC Power Systems in the amount of $72,306.00 plus tax, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented and further, move to include this item as part of the 2012 budget amendment. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 Fire Station #1, 911 Park Avenue Emergency Generator and Transfer Gear Project# 49088, 400 KW Generator Set Summary An emergency generator and associated equipment is required for the Fire Station #1 Facility. Budget was identified for the purchase and placement in 2013. Due to current budget status, City’s Finance Department requested that this purchase be made in 2012, if possible. City Facilities staff worked and established specifications and requirements for this purchase then worked with the State of Washington Department of Enterprise Services and Contracts for bid services/state contract for the emergency generator and associated equipment purchase. Bids were advertised, solicited, received and evaluated by the State from 42 qualified vendors. The low bidder was EC Power Systems in Auburn, Washington for the amount of $72,306.00 plus tax. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Resolution No. 3185 amending and re-establishing City Rates and Fees for 2013. Study Session Date: 11/28/12 COUNCIL MEETING Date: 12/05/12 Department: All Presenter: Becky Hasart Phone: 360-473-5722 SUMMARY: Each year as part of the budget process, the various City departments review their charges, rates and fees for services and make recommendations on any changes needed. The attached includes recommended changes to fees charged by the various departments. ATTACHMENTS: Resolution No. 3185 FISCAL IMPACTS (Include Budgeted Amount): Impacts to revenues are dependent on the demand for services. The 2013 proposed budget does anticipate the approval of this resolution and related rate table. STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Resolution No 3185 as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 1 2013 Rates and Fees RESOLUTION NO. 3185 A RESOLUTION of the City Council of the City of Bremerton, Washington, amending and reestablishing rates and fees for services relating to the Department of Financial Services, Municipal Court, Department of Community Development, Police Department, Fire Department, Parks and Recreation Department, Department of Public Works and Utilities and Bremerton Kitsap Access Television (BKAT). WHEREAS, the City Council desires to amend and reestablish the rates and fees established in prior Resolution Nos. 3128, 3133, 3145, 3156, 3168, and 3172, by this resolution; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Resolutions Repealed. Resolution Nos. 3128, 3133, 3145, 3156, 3168, and 3172 are hereby repealed in their entirety. SECTION 2. Rate Tables amended. Rates and fees for services relating to the Department of Financial Services, Municipal Court, Department of Community Development, Police Department, Fire Department, Parks and Recreation Department, Department of Public Works and Utilities and Bremerton Kitsap Access Television (BKAT), as established and amended by Resolution Nos. 3128, 3133, 3145, 3156, 3168, and 3172, are hereby amended and reestablished herein by this Resolution as set forth in the rates tables attached hereto as Exhibit A, incorporated herein by reference. SECTION 3. Effective Date of Sections 1 and 2. The repeal of resolutions as set forth in Section 1 above and the amendment and restatement of rate tables as set forth in Section 2 above shall be effective January 1, 2013. SECTION 4. Severability. If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 5. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this _____ day of __________________, 2012. _________________________________ JIM McDONALD, Council President 2 2013 Rates and Fees APPROVED AS TO FORM: ATTEST: __________________________________ ________________________________ ROGER A. LUBOVICH, City Attorney SHANNON CORIN, City Clerk R:\Legal\Legal\Resolutions\Finance\2013 Rates and Fees Tables\2013 Resolution establishing Rate Tables.doc FINANCIAL SERVICES – RATE TABLE A All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ A. FINANCIAL SERVICES 1. REGULATORY LICENSE FEES RATE BMC 5.17 Charitable Solicitation Non-Profit $25/60 days Professional Fundraiser $675/60 days BMC 5.22 Dance/Public $265/yr or $70/30 days BMC 5.96 Erotic Dance Studios $700/yr Dancers $100/yr BMC 10.24 Housemoving/Oversize Loads $600+$65/mile to .10 of a mile BMC 5.16 Mobile Food Vendor $150/veh/yr BMC 5.16 Peddlers $75/yr or $25/30days BMC 5.36 Special Events $100.00/event BMC 5.08 Street/Sidewalk Vendors $250/yr BMC 5.16 Temporary Merchant $400/30 days 2. BUSINESS LICENSE FEE RATE BMC 5.02 $75/yr 3. PARKING On-Street Locations Not to Exceed $20/3 hrs $30/10 hrs Off-Street Location Not to Exceed $20/3 hrs $30/10 hrs Parking Garage Not to Exceed $160/mo FINANCIAL SERVICES – RATE TABLE A All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ 4. UTILITY/LIEN SEARCH FEES RATE Per Parcel $30/search per parcel 5. DOCUMENT REPRODUCTION FEES (Including scanning to Electronic Format) Per Page - 8½ x 11, 8½ x 14 and 11 x 17 paper size (No fee for first 50 pages) $0.15/pg Audio or Video Tapes Video Reproduction $10.00Actual Costs including personnel time Computer Disks CD/DVD $102.00 Certification $3.505.00 Oversized Plans, Aerial Photos, Drawings, and Maps (Black and White) $8/pg Color GIS Plotted Maps $5/sq. ft. Other Documents: Medical Records Fees shall be pursuant to RCW 70.02.010(12) Budget (Hard Copy) $50 (Electronic Version) $10 Annual Report (Hard Copy) $25 (Electronic Version) $10 In addition to the above fees, each department may establish fees for records that do not fall into one of the above categories. Each department and the City Clerk shall have the department's fee schedule available for inspection upon request. 6. CHECK HANDLING FEE $40 MUNICIPAL COURT – RATE TABLE B All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ B. Municipal Court RATE 1. HEARING EXAMINER APPEAL $65 2. PARKING PENALTIES Overtime or Non-Payment in Collection Devices: 1st Violation in 30 Days $25 2nd Violation in 30 Days $32 3rd Violation in 30 Days $56 Loading Zones $17 No Parking $45 Wrong Way $45 Parked on Sidewalk $56 Fire Hydrant $45 12" From Curb $10 Physically Disabled (Public and Private) $250 Counterfeiting or User of Counterfeit Permits, Tokens or Script $500 Unauthorized Use of Permits $150 All Other Infractions Not Specified Above $27 Replacement of parking permit $10.00 Blocked Driveway $45.00 Expired Tabs $45.00 30 Foot to Stop Sign $45.00 Double Parked $45.00 No Stopping/No Standing $45.00 Parking Capacity Survey $250.00 3. TRAFFIC PENALTIES Inattentive Driving $124.00 COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ C. DEPARTMENT OF COMMUNITY DEVELOPMENT RATE 1. SUBDIVISIONS Preliminary Short $1000 + $150 per lot Preliminary Formal Plat/Binding Site Plan $2500 + $150/lot (1-100 lots) $100/lot (101-200 lots) $75/lot (201 + lots) Final Short $630 + $40/lot Final Formal Plat/Binding Site Plan $945 + 40/lot 2. SHORELINE MASTER PROGRAM Substantial Development Permit $1,300 Conditional Use Permit – Type II $850 Conditional Use Permit – Type III $1750 Shoreline Variance $1750 Permit Revision $325 Shoreline Exemption $100 3. STATE ENVIRONMENTAL POLICY ACT (SEPA) Checklist $320 Environmental Impact Statement Review/Adoption $650 + additional cost of expertise 4. APPEAL (to Hearing Examiner) $350 5. PRE-APPLICATON CONFERENCE $100 6. ABATEMENTS Dangerous Building $900 + Direct Service and Supply Cost Garbage & Weed $640 + Direct Service and Supply Cost 7. BUILDING PERMIT FEES –Refer to Exhibit 1 Refer to Exhibit 1 8. PLAN REVIEW FEE Note: 50% of the Plan Review Fee may be waived in cases of multiple submittals of identical residential plans within a calendar year. This waiver shall not apply in the event of an applicable code change. 65% of the building permit fee as set forth in Exhibit 1 9. ESTABLISHED “BASIC” PLAN REVIEW Pursuant to DCD policy 50% of Plan Review Fee 910. MECHANICAL PERMIT FEES –Refer to Exhibit 2 Residential Refer to Exhibit 2 Commercial / Non-Residential / Multifamily Valuation and Refer to Exhibit 1 COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ RATE 1011. PLUMBING PERMIT FEES –Refer to Exhibit 3 Residential Refer to Exhibit 3 Commercial / Non-Residential / Multifamily Valuation and Refer to Exhibit 1 1112. GRADING PERMIT AND PLAN REVIEW FEES – Refer to Exhibit 4 Refer to Exhibit 4 1213. ZONING ORDINANCE Ordinance Amendments Text $740 Rezone (Map Amendment) $740 Variance Administrative $325 Public Hearing/Single Family $500 Public Hearing/Other $1750 Residential Cluster Development $1500 Development Agreements $1600 Conditional Use Permit Administrative (No public hearing)Single Family Residential Type II $350 Single Family Residential Type III $500 Commercial / Non-Residential / Multifamily – Type II $850 Hearing Examiner (Public hearing)Commercial / Non-Residential / Multifamily – Type III $1750 Non-Conforming Use Determination $275 Director'’s Code Interpretation $175 1314. COMPREHENSIVE PLAN Text or Map Amendment $1500 Combined Text and Map Amendment $2500 1415. SITE PLAN REVIEW Type I Permit $250 Commercial / Non-Residential / Multifamily – Type II Permit $500 1516. SITE DEVELOPMENT PERMIT $500 (Fee waived if concurrent with Site Plan Review) 1617. MULTIFAMILY TAX EXEMPTION Application $1500 COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ RATE 1718. DESIGN REVIEW BOARD Conceptual Design Conference $500 Design Response Conference $500 1819. MISCELLANEOUS FEES Hourly Rate $56.00 Stop Work Fee 100 % of permit fee COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ Exhibit A COMMUNITY DEVELOPMENT – RATE TABLE C EXHIBIT 1 BUILDING AND OTHER PERMIT FEES TOTAL VALUATION FEE $1.00 TO $500.00 $26.00 $501.00 TO $2,000.00 $26.00 for the first $500.00 plus $3.00 for each additional $100.00, or fraction thereof, to and including $2,000.00 $2,001.00 to $40,000 $69.00 for the first $2,000.00 plus $11.00for each additional $1,000.00, or fraction thereof, to and including $40,000 $40,001.00 to $100,000.00 $487.00 for the first $40,000; plus $9.00 for each additional $1,000.00, or fraction thereof, to and including $100,000.00 $100,001.00 to $500,000.00 $1,027.00 for the first $100,00.00 plus $7.00 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $500,001.00 to $1,000,000.00 $3,827.00 for the first $500,000.00 plus $5.00 for each additional $1,000.00, or fraction thereof, to and including $1,000,000.00 $1,000,001.00 to 5,000,000.00 $6,327.00 for the first $1,000,000.00 plus $3.00 for each additional $1,000.00, or fraction thereof, to include $5,000,000.00 $5,000,001.00 and over $18,327.00 for the first $5,000,000.00; plus $1.00 for each additional $1,000.00 or fraction thereof Other Inspections and fees: 1. Inspections outside of normal business hours ....................................................................... $56.00 per hour1 (minimum charge – two hours) 2. Re-inspection fees assessed under provisions of this chapter shall be as follows (per inspection): ....................................................................................................... $56.00 per hour1 3. Inspections for which no fee is specifically indicated .......................................................... $56.00 per hour1 (minimum charge – one-half hour) 4. Additional plan review required by changes, additions or revisions to plans .................................................................................................................................. $56.00 per hour1 (minimum charge – one-half hour) 5. For use of outside consultants for plan checking and inspections, or both ........................... Actual Costs2 6. Mobile Manufactured Home Setup Fee ................................................................................ Bid Price valuation used in Exhibit 1 Double Wide .................................................................................. $150.00 Triple Wide .................................................................................... $200.00 7. Moved Building Permit Fee (not including other required permits) ................................................................................................................................. $100.00 8. Demolition permit Fee: 3 cents per square foot, with a minimum charge of .............................................................................................................................. $56.00 9. Energy Code Plan Review Surcharge for New Single Family Residences .......................... $50.00 1Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved. 2Actual costs include administrative and overhead costs. COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ EXHIBIT 2 MECHANICAL PERMIT FEES Permit Issuance and Heaters Fee 1. For the issuance of each mechanical permit $23.50 2. For issuing each supplemental permit for which the original permit has not expired, been canceled or finaled $7.25 Unit Fee Schedule (Note: The following do not include permit-issuing fee) 1. Furnaces For the installation or relocation of each forced-air or gravity-type furnace or burner, including ducts and vents attached to such appliance, up to and including 100,000 Btu/h (29.3 kW) $14.80 For the installation or relocation of each forced-air or gravity-type furnace or burner, including ducts and vents attached to such appliance over 100,000 Btu/h (29.3 kW) $18.20 For the installation or relocation of each floor furnace, including vent $14.80 For the installation or relocation of each suspended heater, recessed wall heater or floor- mounted unit heater $14.80 2. Appliance Vents For the installation, relocation or replacement of each appliance vent installed and not included in an appliance permit $7.25 3. Repairs or Additions For the repair of, alteration of, or addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption or evaporative cooling system, including installation of controls regulated by the Mechanical Code $13.70 4. Boilers, Compressors and Absorption Systems For the installation or relocation of each boiler or compressor to and including 3 horsepower (10.6 kW), or each absorption system to and including 100,000 Btu/h (29.3 kW) $14.70 For the installation or relocation of each boiler or compressor over three horsepower (10.6 kW) to and including 15 horsepower (52.7 kW), or each absorption system over 100,000 Btu/h (29.3 kW) to and including 500,000 Btu/h (146.6 kW) $27.15 For the installation or relocation of each boiler or compressor over 15 horsepower (52.7 kW) to and including 30 horsepower (105.5 kW), or each absorption system over 500,000 Btu/h (146.6 kW) to and including 1,000,000 Btu/h (293.1 kW) $37.20 For the installation or relocation of each boiler or compressor over 30 horsepower (105.5 kW) to and including 50 horsepower (176 kW), or each absorption system over 1,000,000 Btu/h (293.1 kW) to and including 1,750,000 Btu/h (512.9 kW) $55.45 For the installation or relocation of each boiler or compressor over 50 horsepower (176 kW), or each absorption system over 1,750,000 Btu/h (512.9 kW) $92.65 5. Air Handlers For each air-handling unit to and including 10,000 cubic feet per minute (cfm) (4719 L/s), including ducts attached thereto Note: This fee does not apply to an air-handling unit which is a portion of a factory- assembled appliance, cooling unit, evaporative cooler or absorption unit for which a permit is required elsewhere in the Mechanical Code $10.65 For each air-handling unit over 10,000 cfm (4719 :s) $18.10 COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ 6. Evaporative Coolers For each evaporative cooler other than portable type $10.65 7. Ventilation and Exhaust For each ventilation fan connected to a single duct $7.25 For each ventilation system which is not a portion of any heating or air-conditioning system authorized by a permit $10.65 For the installation of each hood which is served by mechanical exhaust, including the ducts for such hood $10.65 8. Incinerators For the installation or relocation of each domestic-type incinerator $18.20 For the installation or relocation of each commercial or industrial-type incinerator $14.50 9. Miscellaneous For each appliance or piece of equipment regulated by the Mechanical Code but not classed in other appliance categories, or for which no other fee is listed in the table $10.65 For each gas piping system of 1 – 5 outlets $6.25 For each additional gas piping system outlet, per outlet $1.25 Other Inspections and Fees Inspections outside of normal business hours, per hour (minimum charge – two hours $49.501 Re-inspection fees assessed under provisions of this chapter shall be as follows (per inspection): $49.501 Inspections for which no fee is specifically indicated, per hour (minimum charge – one-half hour) $49.501 Additional plan review required by changes, additions or revisions to plans or to plans for which an initial review has been completed (minimum charge – one-half hour) $49.501 1Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved. COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ EXHIBIT 3 PLUMBING PERMIT FEES Permit Issuance 1. For issuing each permit $20.00 2. For issuing each supplemental permit $10.00 Unit Fee Schedule (in addition to items 1 and 2 above) 1. For each plumbing fixture on one trap or a set of fixtures on one trap (including water, drainage piping and backflow protection therefore) $7.00 2. For each building sewer and each trailer park sewer $15.00 3. Rainwater systems – per drain (inside building) $7.00 4. For each cesspool (where permitted) $25.00 5. For each private sewage disposal system $40.00 6. For each water heater and/or vent $7.00 7. For each gas piping system of one to five outlets $5.00 8. For each additional gas piping system outlet, per outlet $1.00 9. For each industrial waste pretreatment interceptor including its trap and vent, except kitchen-type grease interceptors functioning as fixture traps $7.00 10. For each installation, alteration or repair of water piping and/or water treating equipment, each $7.00 11. For each repair or alteration of drainage or vent piping, each fixture $7.00 12. For each lawn sprinkler system on any one meter including backflow protection devices therefore $7.00 13. For atmospheric-type vacuum breakers not included in item 12: 1 to 5 $5.00 Over 5, each $1.00 14. For each backflow protective device other than atmospheric type vacuum breakers: 2 inch (51 mm) diameter and smaller $7.00 Over 2 inch (51 mm) diameter $15.00 15. For each graywater system $40.00 16. For initial installation and testing for a reclaimed water system $30.001 17. For each annual cross-connection testing of a reclaimed water system (excluding initial test ) $30.001 18. For each medical gas piping system serving one to five inlet(s)/outlet(s) for a specific gas $50.00 19. For each additional medical gas inlet(s)/outlet(s) $5.00 Other Inspections and Fees 1. Inspections outside of normal business hours $30.001 2. Re-inspection fee $30.00 3. Inspections for which no fee is specifically indicated $30.001 4. Additional plan review required by changes, additions or revisions to approved plans (minimum charge – one-half hour) $30.001 1Per hour for each hour worked or the total hourly cost to the jurisdiction, whichever is greater. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of all the employee s involved. COMMUNITY DEVELOPMENT – RATE TABLE C All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ EXHIBIT 4 GRADING PLAN REVIEW FEES 50 cubic yards (38.2 m3) or less No fee 51 to 100 cubic yards (40 m3 to 76.5 m3) $23.50 101 to 1,000 cubic yards (77.2 m3 to 764.6 m3) $37.00 1,001 to 10,000 cubic yards (765.3 m3 to 7645.5 m3) $49.25 10,001 100,000 cubic yards (7646.3 m3 to 76,455 m3) $49.25 for the first 10,000 cubic yards (7645.5 m3), plus $24.50 for each additional 10,000 cubic yards (7645.5 m3) or fraction thereof 100,001 to 200,000 cubic yards (76,456 m3 to 152,911 m3) $269.75 for the first 100,000 cubic yards (76,455 m3), plus $13.25 for each additional 10,000 cubic yards (7645.5 m3) or fraction thereof 200,001 cubic yards (152,912 m3) or more $402.25 for the first 200,000 cubic yards (152,911 m3), plus $7.25 for each additional 10,000 cubic yards (7645.5 m3) or fraction thereof Other Fees: Additional plan review required by changes, additions or revisions to approved plans (minimum charge – one-half hour) $50.50 per hour1 1Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved. GRADING PERMIT FEES1 50 cubic yards (38.2 m3) or less $23.50 51 to 100 cubic yards (40 m3 to 76.5 m3) $37.00 101 to 1,000 cubic yards (77.2 m3 to 764.6 m3) $37.00 for the first 100 cubic yards (76.5 m3) plus $17.50 for each additional 100 cubic yards (76.5 m3) or fraction thereof 1,001 to 10,000 cubic yards (765.3 m3 to 7645.5 m3) $194.50 for the first 1,000 cubic yards (764.6 m3), plus $14.50 for each additional 1,000 cubic yards (764.6 m3) or fraction thereof 10,001 to 100,000 cubic yards (7646.3 m3 to 76,455 m3) $325.00 for the first 10,000 cubic yards (7645.5 m3), plus $66.00 for each additional 10,000 cubic yards (7645.5 m3) or fraction thereof 100,001 cubic yards (76,456 m3) or more $919.00 for the first 100,000 cubic yards (76,455 m3), plus $36.50 for each additional 10,000 cubic yards (7645.5 m3) or fraction thereof Other Inspections and Fees: 1. Inspections outside of normal business hours (minimum charge – two hours) $50.50 per hour2 2. Re-inspection fees assessed under provisions of this chapter shall be as follows (per inspection): $49.50 per hour2 3. Inspections for which no fee is specifically indicated (minimum charge – one-half hour) $50.50 per hour2 1The fee for a grading permit authorizing additional work to that under a valid permit shall be the difference between the fee paid for the original permit and the fee shown for the entire project. 2Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved. POLICE DEPARTMENT – RATE TABLE D All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. _______ D. POLICE DEPARTMENT RATE 1. TRAFFIC ACCIDENT REPORTS $10.00 2. FINGERPRINTS – 1st Card $10.00 Each Additional Card $10.00 3. CRIMINAL HISTORY CHECK $10.00 4. VERIFICATION LETTER FOR LOST OR STOLEN PROPERTY $8.00 5. PHOTO PRINTS Actual Cost of (Per Set When in Possession of the Dept.) Processing 6. LICENSES FOR DOGS AND CATS For Each Cat Spayed or Neutered $7.50 (Upon Proof of Spaying or Neutering) For Each Dog Spayed or Neutered $12.50 (Upon Proof of Spaying or Neutering) For Each Cat Not Spayed or Neutered $37.50 For Each Dog Not Spayed or Neutered $37.50 Senior Permanent Dog/Cat $12.50 7. LICENSE FOR CHICKENS For up to five (5) chickens $12.50 Senior permanent for up to five (5) chickens $12.50 8. ALARM COMPLIANCE FEE 1st False Alarm in any 1 Quarter $60.00 2nd False Alarm in the same Quarter $80.00 3rd False Alarm in the same Quarter $160.00 or Subsequent Alarms in a Calendar Quarter 9. SERVICE FEE FOR ANTI-HARASSMENT ORDER $50.00 10. SERVICE OF ARREST WARRANTS AND SUBPOENAS Arrest Warrant $15.00 plus mileage Subpoena $6.00 plus mileage Preparation of return of service $5.00 Mileage (for each mile actually and necessarily traveled by a member of the Police Department in going to or returning from any place of service, or attempted service) current business mileage rate allowed by the Internal Revenue Service FIRE DEPARTMENT – RATE TABLE E All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. _______ E. FIRE DEPARTMENT RATE 1. REGULATORY LICENSE FEES BMC 9.48 Fireworks Stands / Displays $100/stand/yr BMC 18.06 Ambulance Services Ambulance Inspections $60/veh 2. AMBULANCE TRANSPORT FEE ALS Residents $550 ALS – 2 $650 ALS Non-Residents $650 BLS Residents $425 BLS Non-Residents $500 Mileage $11.00/mile 3. EMS SERVICE CALL TO ASSISTED LIVING, LONG TERM CARE AND ADULT CARE FACILITIES $100 After first response per quarter 4. RE-INSPECTION FEE $56.00 5. HAZARD MATERIALS RESPONSE Rice Hull Ash Actual Cost per Bag Absorbent Pads Actual Cost per Bag 6. STAND-BY-TIME Per crew of 3 $98/hour Fire Engine – Crew of 4 $115/hour 7. ACTIVE FIREFIGHTING Fire Engine Washington Fire Chiefs Published Rate* Aerial Ladder Washington Fire Chiefs Published Rate* 8. SPRINKLER/FIRE ALARM PLANS IFC Rates** 9. FIRE WATCH $50.00/hour 10. AFTER HOURS INSPECTION Actual Cost 11. RUSH PLAN REVIEW Actual Cost * Washington Fire Chiefs Association Wage & Equipment Rates for the Washington State Fire Service ** International Fire Code PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ F. PARKS AND RECREATION DEPARTMENT NON-RESIDENT FEE - BASE FEE PLUS 25% 1. FACILITY USE RENTAL RATES • Facility use policies apply. • Appropriate taxes are included in rates unless otherwise noted. • Regular Groups (10 or more meetings a year, reserved in advance) may receive a 20% discount on Facility and Park Rental Fees. • Non-Profit Groups may receive a 50% Discount on Facility and Park Rental Fees with proof of Non-Profit status. (a) SHERIDAN COMMUNITY CENTER – ROOM RENTAL RATES RATE (Group A) NON-COMMERCIAL – Rental Rates Recreation and/or educational purposes only. Per hour, two (2) hour minimum Daytime (Monday – Friday: 8:00 AM to 5:00 PM) Lounge $9.0025 Room A, B/C, Conference Room $6.757.00 Room B/C, Conference Room 7.75 Gym $19.5020.00 Evenings (Monday – Thursday: 5:00 PM to 10:00 PM) Lounge $19.5020.00 Room A, B/C $13.0050 Room B/C, Conference Room $15.0050 Gym $25.0075 Room Package (Lounge & Gym) $39.0040.00 Entire building – Up to eight (8) hours* $618636.00 Regular Groups (10 or more meetings a year reserved in advance) 20% discount Friday Evening (5:00 PM to 10:00 PM) & Saturday and Sunday Lounge $26.0075 Room A, B/C $13.0050 Room B/C, Conference Room $15.0050 Gym $31.5032.50 Room Package (Lounge & Gym) $50.0051.50 Entire building – Up to eight (8) hours* $618636.00 * Entire building rental for events with 250 or more participants requires additional staff charges at $16.00 50 per hour. PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ (a) SHERIDAN COMMUNITY CENTER – ROOM RENTAL RATES RATE (Group B) COMMERCIAL – Rental Rates Recreational and/or educational purposes only. Per hour, two (2) hour minimum Lounge $3132.50 Room A $25.0075 Room B/C, Conference Room $25.0075 Gym $50.0051.50 Room Package (Lounge & Gym) $88.0090.50 Entire Building - Up to eight (8) hours* $993.001,023.00 * Entire building rental for events with 250 or more participants requires additional staffing fee at $16.00 50 per hour. (b) BREMERTON SR. CITIZENS CENTER - ROOM RENTAL RATES (Group A) NON-COMMERCIAL – Rental Rates Per hour, two (2) hour minimum Cardroom/Meeting Room $18.2519.00 Main Room $36.7538.00 Kitchen $15.5016.00 Additional staffing per hour $16.0050 Entire Facility up to eight (8) hours $257.50275.00 (Group B) COMMERCIAL – Rental Rates Per hour, (two ) 2 hour minimum Cardroom/Meeting Room $37.0038.00 Main Room $74.0076.00 Kitchen $31.5032.00 Additional staffing per hour $16.0050 Entire Facility – Up to eight (8) hours $500550.00 (c) PARK SHELTERS – RESERVATION FEES Four (4) hour sessions per reservation unless otherwise noted. Bremerton residents may reserve park shelters beginning January 1st for the upcoming year. Non-resident reservations will be accepted beginning February 1st. (Group A) NON-COMMERCIAL – Rental Rates Blueberry Shelter $3132.50 Evergreen Shelter 1 $6365.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ (c) PARK SHELTERS – RESERVATION FEES Evergreen Shelter 2, 3, 5, or 6 $3132.50 Evergreen Shelter 4 (not reservable, first come first served) no charge Evergreen Amphitheatre with Amplified Sound $157.50165.00 Kiwanis Park Shelter $45.00 Lions Park Shelter 1 $43.2545.00 Lions Park Shelter 2 $31.5032.50 Matan Park Shelter $25.0025.75 Upper NAD $25.0025.75 Lent Landing Gazebo $31.5032.50 Reserve portion of a park not having a shelter. $31.5032.50 (Group B) COMMERCIAL – Rental Rates Blueberry Shelter $48.5050.00 Evergreen Shelter 1 $94.2597.50 Evergreen Shelter 2, 3, 5, or 6 $48.5050.00 Evergreen Shelter 4 (not reservable) no charge Evergreen Amphitheatre with Amplified Sound $189.200.00 Kiwanis Park Shelter $67.50 Lions Park Shelter 1 $65.0067.50 Lions Park Shelter 2 $48.5050.00 Matan Park Shelter $3738.50 Upper NAD $38.0038.50 Lent Landing Gazebo $48.5050.00 Reserve portion of a park not having a shelter. $48.5050.00 (d) SPECIAL EVENTS, CELEBRATIONS, WEDDINGS Louis Mentor Boardwalk $249256.00 Other parks Reservation fee + $100.00 (e) ATHLETIC FIELD – RESERVATIONS Per hour unless noted (Group A) NON-COMMERCIAL – Rental Rates $1920.00 (Group B) COMMERCIAL – Rental Rates $3840.00 Game Fee - Softball $3132.50 Game Fee - Soccer $50.0051.50 (f) BLUEBERRY PARK – P-PATCH ANNUAL RATE Non-commercial gardening only. Raised Beds $10.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ Seasonal (10 x 20)10 x 20 Beds $40.00 Year Round (16 x 3016 x 30 Beds) $60.00 (g) LIONS TENNIS COURT LIGHTS 1 token (1 hour) $2.00 6 tokens (6 hours) $9.00 2. PROGRAM FEES & CHARGES RATE (a) NEW PROGRAMS See Section 3, subsection (a) (b) ATHLETIC PROGRAM FEES VOLLEYBALL Co-ed (Fall & Winter) per team $270278.00 Men and Women (Spring) per team $270278.00 Open Gym (Oct. – June) per person $34.00 BASKETBALL Men’s League (Fall & Winter) per team $560577.00 Boy’s League (Winter) per team $300310.00 Boy’s League (Individual Reg.) per individual $40.00 SOFTBALL Men’s Spring League (Spring) per team $580597.00 Men’s Spring League – Players fee (Spring) per player $2224.00 Spring Sunday Co-ed (Spring) per team $420435.00 Spring Sunday Co-ed – Players fee (Spring) per player $16.7517.00 Fall Co-ed League (Fall) per team $488500.00 Fall Co-ed – Players fee (Fall) per player $18.2519.00 Men’s Fall League (Fall) per team $488500.00 Men’s Fall League – Players fee (Fall) per player $18.2519.00 TOURNAMENTS (SOFTBALL AND SOCCER) " -- INVITATIONAL TOURNAMENTS Lions – One Day $357368.00 Lions – Two Day $572590.00 Lions – Three Day $762785.00 Pendergast – One Day $462476.00 Pendergast – Two Day $735757.00 Pendergast – Three Day $893920.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ "-- STATE TOURNAMENTS* Lions – One Day $500515.00 Lions – Two Day $745767.00 Lions – Three Day $867893.00 Pendergast – One Day $645665.00 Pendergast – Two Day $867893.00 Pendergast – Three Day $1,024055.00 "* Regional and National Tournaments cost to be negotiated depending on field preparation requirements. 3. SENIOR CITIZEN CENTER AND RECREATION DIVISION PROGRAMS (a) PROGRAM FEE FORMULAS. Except for the Sr. Citizens Trip program, participant fees for activities (programs, classes, events, etc.) promoted by the Sr. Citizen Center and the Recreation Division are established by the following formulas: A. Activities when the instructor is on City payroll. *Based on “Not-to-Exceed” rates [(Total class hours including preparation) x (Instructor’s hourly wage) x (1.5 Administration factor)] divided by(minimum # of students per activity)] + (the cost of group supplies divided by minimum # of students) + Cost of individual class supplies, if applicable = Student class fee for City of Bremerton Resident. B. Activities taught by contracted instruction. *Based on “Not-to-Exceed” rates [(Price per student required by the Instructor less class supply fees) x (1.5 Administration factor)] + Class supply fees = Student class fee for City of Bremerton Resident. C. Non-Resident Fees for Recreational Programs. For recreation classes, programs, swim passes and rentals – ranging from: $5.00 to $25.00 add on 25% $25.01 to $50.00 add a flat $6.25 $50.01 to $100.00 add a flat $12.50 $100.01 to $200.00 add a flat $25.00 $200.01 + add a flat $50.00 (b) SENIOR CENTER ACTIVITIES (AGE 55+). RATE Couples Membership is for two people, at least one needs to be 55 or better, who reside at the same address. Community Members Memberships are for Senior Living facilities who are interested in purchasing a group of tickets (10, 20 or more).Residency is based on where the Senor Living facility is located. Associate Memberships are for those individuals not yet 55 but still would like to participate in the programs, trips and classes offered at the Center. PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ Senior Citizen – City Resident annual membership $810.00 Senior Citizen – Non-Resident annual membership $1620.00 Senior Center – City Resident Couples annual membership $14.5016.00 Senior Center – Non-Resident Couples annual membership $2932.00 Senior Center – City Resident Associate annual membership $13.2515.00 Senior Center – Non-Resident Associate annual membership $26.5030.00 (c) SENIOR CENTER TRIPS actual costs plus 25% NON-RESIDENT FEE – LISTED RATE PLUS 25% 4. IVY GREEN CEMETERY - FEES AND CHARGES RATE (a) ADULT BURIAL Grave Site $9931,023.00 Opening/Closing $657677.00 Liner $646665.00 Oversize Liner (if required) $935963.00 Grave Side Service Preparation (optional) $184190.00 (b) VETERANS PLOT Grave Site $496511.00 Opening/Closing $329339.00 Liner $323333.00 Oversize Liner (if required) $468482.00 Grave Side Service Preparation (optional) $9396.00 Stone Marker Setting $5759.00 Bronze Marker Setting $4950.00 (c) INFANT BURIAL Infant Plot in Babyland $256264.00 Opening/Closing $400412.00 Liner $281289.00 Grave Side Service Preparation (optional) $184190.00 (d) DISINTERNMENT Removal & opening of new site $1,375.001,416.00 Site Purchase $9931,023.00 Liner $646665.00 Removal (only) $903930.00 Cremation Removal $218225.00 (e) ADDITIONAL BURIAL COSTS 2 hr. max. $178183.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ 4 hour max. $357368.00 (f) LINERS Adult $646665.00 Infant $281289.00 Cremation Vault (2 piece) $150154.00 Oversize Liner (if required) $935963.00 (g) OPENING AND CLOSING RATE Adult $657677.00 Infant (Babyland) $400412.00 Urn Interment (per urn) $157162.00 (h) BURIAL SITES Adult $9931,023.00 Infant (Babyland) $256264.00 Infant (any site not in Babyland) $9931,023.00 (i) INURNMENT Vault $150154.00 Opening/Closing $150154.00 Grave Side Service Preparation (optional) $184190.00 Second Right of Inurnment $250258.00 (j) DISURNMENTS Urn $218225.00 (k) RAISE GRAVE $147151.00 (l) MARKER SETTING FEES 5" x 8" bronze plus tax $8992.00 4" x 12" x 2" x 3" plus tax $9699.00 8" x 16" x 2" x 3" plus tax $100103.00 10" x 20" x 2" x 3" plus tax $113116.00 12" x 24" x 2" x 3" plus tax $118122.00 12" x 24" bronze plus tax $118122.00 12" x 36" x 2" x 3" plus tax $175180.00 14" x 36" x 2" x 3" plus tax $180185.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ 5. GOLD MOUNTAIN GOLF COMPLEX (prices do not include sales tax) Golf Senior Rates apply at age 62. (a) CASCADE COURSE Friday 18 Holes $42.00 Weekday 18 Holes (Mon-Thurs) $39.00 Weekday 1pm – 3pm $33.00 Weekend/Holiday 18 Holes (Note: 1) $46.00 Weekend 2pm – 3pm $37.00 Weekday 9 Holes (Mon-Thurs) $25.00 Weekend/Holiday 9 Holes $28.00 Continuation Fee $20.00 Twilight Weekday (Mon-Thurs) $26.00 Twilight Weekend/Holiday $29.00 League Rate (Not Sat, Sun or Holiday) $20.00 Senior 18 Holes (Mon-Thurs) $34.00 Junior 18 Holes (Mon-Thurs) $13.00 Junior Twilight Weekend/Holiday $14.00 Family Golf (up to 4) (Note: 4) $25.00 All Day Monday – Tuesday $64.00 Senior Punch Card (Not Sat, Sun or Holiday) (Note: 2) $230.00 Regular 20 Round Punch Card $540.00 Regular 10 Round Punch Card $290.00 Junior 10 Round Punch Card $90.00 Low Income Sr. Punch Card (Not Sat, Sun or Holiday) (Note 2 & 6) $90.00 Monthly Twilight Pass (7 days a week) $109.00 Corporate Pass (Mon-Thurs) (2 Officers) $4,000.00 Corporate Pass w/ power cart (Mon-Thurs) (2 Officers) (Note: 2) $5,000.00 Daily Private Cart $17.00 Shotgun Tournament (Not To Exceed 18 Hole Green Fee) (Note: 7) $75.00 Military Pass (100) no tax $2,300.00 (b) OLYMPIC COURSE RATE Friday 18 Holes $52.00 Weekday 18 Holes (Mon-Thurs) $48.00 Weekday 1pm – 3pm $37.00 Weekend/Holiday 18 Holes (Note: 1) $66.00 Weekend 2pm – 3pm $46.00 Weekday 9 Holes (mon-Thurs) $27.00 PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ Weekend/Holiday 9 Holes $36.00 Continuation Fee $20.00 Twilight Weekday (Mon-Thurs) $28.00 Twilight Weekend/Holiday $30.00 League Rate (Not Sat, Sun or Holiday) $20.00 Senior 18 Holes (Mon-Thurs) $42.00 Junior 18 Holes (mon-Thurs) $23.00 Junior Twilight Weekend/Holiday $20.00 Family Golf (up to 4) (Note: 4) $25.00 All day Monday-Tuesday $64.00 Shotgun Tournament (Not To Exceed 18 Hole Green Fee) (Note: 1) $100.00 Weekend Early Bird $50.00 Weekday Early Bird $36.00 Olympic Punchcard Plus $13.00 Annual Pass Single $2,030.00 Annual Pass Couple $3,360.00 Annual Pass Family (Note: 5) $2,800.00 plus $200.00 per junior Annual Pass Junior (Mon-Thurs) (Note: 3) $400.00 Annual Pass Sr. Single (Not Sat, Sun or Holiday $1,370.00 Annual Pass Sr. Couple (Not Sat, Sun or Holiday $2,160.00 Semi Annual Single – first ½ of year $875.00 Semi Annual Single – second ½ of year $950.00 Semi Annual Couple – first ½ of year $1,450.00 Semi Annual Couple – second ½ of year $1,500.00 Semi Annual Sr. Single – first ½ of year (Not Sat. Sun or Holiday) $600.00 Semi Annual Sr. Single – second ½ of year (Not Sat, Sun or Holiday) $650.00 Semi Annual Sr. Couple – first ½ of year (Not Sat, Sun or Holiday) $1,000.00 Semi Annual Couple – second ½ of year (Not Sat, Sun or Holiday $1,050.00 1. Saturday, Sunday or Holiday (May-September Not to Exceed Rate) 2. May be used for twilight any day of the week including holidays. 3. Friday-Sunday and Holidays depending on availability. 4. Family of up to 4, either course. After 1:00 p.m. January, February, November & December, after 3:00 p.m. March & October, after 4:00 p.m. April and after 6:00 p.m. May & September. 5. June through September, Juniors may only play after 11:00 a.m. on weekends and holidays. 6. Ages 62 & up with household income <$18,000. RCW 71.38.070 7. A reduced rate, not less than the current twilight rate, may be offered with the approval of the PARKS RECREATION DEPT – RATE TABLE F All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. ______ Director of Parks & Recreation. PUBLIC WORKS AND UTILITIES – RATE TABLE G All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ G. PUBLIC WORKS AND UTILITIES DEPARTMENT RATE 1. RIGHT-OF WAY USE PERMITS FEES Type A (Short Term Use) Regular (Misc. Construction) $160.00 Dumpster – Individual personal use No Charge Dumpster – Commercial/Construction $60.00 Type B (Disturbance of ROW) Sidewalk Repairs (2 inspections) $55.00 Driveway, Transverse Street Patch and Spot Patches (2 inspections) $160.00 Frontage Improvements (curb, gutter, sidewalk, illumination, etc.); Longitudinal Street Patch; and Utility Installation $3.15/ft with a $160.00 minimum New Street $5.25/ft with a $625.00 minimum Water & Sewer Mains & Laterals (ROW Permit) (2 inspections) $160.00 Additional Inspection $50.00 Type C (Long Term Use) Application and Processing $100.00 Use longer than one year 1/10 adjoining land value set in the County Assessor's records per square foot of impacted ROW annually with a $100 minimum. Use shorter than one year 1/50 adjoining land value set in the County Assessor's records per square foot of impacted ROW monthly with a $100 minimum. Type D Regular (Franchised Utility Routine Maintenance) $100.00 Plan Reviews $0.25/foot of improvement with $105 minimum Additional Work $45.00/hour + equipment charges 2. RIGHT-OF-WAY VACATION $575.00 3. TELECOM MASTER PERMIT FEE $525.00/one time 4. TELECOM LICENSE FEE $210.00/one time 5. DRIVEWAY DECOMMISSIONING AND RECOMMISSIONING FEE $270.00 PUBLIC WORKS AND UTILITIES – RATE TABLE G All Rates Listed Are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ RATE 6. BMC 10.24 HOUSEMOVING/OVERSIZE LOADS $600+$65/mile to .10 of a mile BREMERTON KITSAP ACCESS TELEVISION (BKAT) – RATE TABLE H All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ H. BREMERTON KITSAP ACCESS TELEVISION (BKAT) 1. Pre-production RATE Equipment Consultation $100/per hour Program Development $100/per hour Research $100/per hour Location $100/per hour Scripting $100/per hour Graphics Development $100/per hour 2. EQUIPMENT STUDIO $25.00 per hour (minimum 2 hours) 3. PRODUCTION* Set-up $100 per hour Production $100/per hour Breakdown $100/per hour *minimum of 2 hours for any productions 4. Post Production Edit $100 per hour Voice Over $100 per hour 5. Training Studio $100 3 hours of camera and director training – max 4 people Edit $50 5 hours of Apple Final Cut 6. Miscellaneous Equipment Installation $100 per hour Equipment Troubleshooting and Repair $100 per hour DVD Duplication $35.84 (includes tax) 7. Membership (Annual) Individual Resident $25.00 Individual Non-Resident $35.00 Organization – Resident $75.00 Organization – Non-Resident $100.00 BREMERTON KITSAP ACCESS TELEVISION (BKAT) – RATE TABLE H All Rates Listed are "Not To Exceed" Fees EXHIBIT A Resolution No. _____ 8. Rental Rate Field Equipment Tripod $25.00 Per Hour ($300.00 Deposit) Light Kit $50.00 Per Hour ($300.00 Deposit) Lavalier Mic $20.00 Per Hour ($300.00 Deposit) Video Monitor $25.00 Per Hour ($300.00 Deposit) Studio Equipment Studio $50.00 Per Hour ($1,000.00 Deposit) Lights $25.00 Control Room $50.00 Wireless mics (4) $25.00 Teleprompter $25.00 Misc $10 ea Tables, chairs, easels, table cloths 9. Public Service Announcement with voice over. A public service announcement with voice over is an option as part of the Special Event Permit through the City. The public service announcement will air on BKAT for a minimum of two weeks. $25.00 Proof of Special Events Permit also required AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5201 amending Section 3.86.200 of the Bremerton Municipal Code relating to business and occupation taxes, and further amending Chapter 3.48. Study Session Date: 11/28/12 COUNCIL MEETING Date: 12/05/12 Department: Finance Presenter: Becky Hasart Phone: 473-5722 SUMMARY: The City of Bremerton is one of 39 cities imposing a business and occupation tax. As such, we have an obligation to insure our model tax ordinance remains up to date. The model B&O tax ordinance is reviewed every four years to insure our provisions remain current with RCW. The attached updates our code accordingly. Also attached with the agenda item is a fact sheet prepared by the Association of Washington Cities outlining the changes being made to the model B&O ordinance. The two major changes are related to “digital goods” and confidentiality of tax returns. ATTACHMENTS: AWC fact sheet; Ordinance No. 5201 FISCAL IMPACTS (Include Budgeted Amount): This change is a housekeeping measure. There is no fiscal impact. STUDY SESSION AGENDA: ☒ No Discussion ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5201 amending Section 3.86.200 of the BMC entitled “Public Disclosure—Confidentiality—Information Sharing” relating to business and occupation taxes, and further amending Chapter 3.48 of the BMC entitled “Business and Occupation Taxes.” COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 1 B & O Tax Code Updates 2012 ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 3.86.200 of the Bremerton Municipal Code entitled “Public Disclosure – Confidentiality – Information Sharing relating to business and occupation taxes, and further amending Chapter 3.48 of the Bremerton Municipal Code entitled “Business and Occupation Taxes.” WHEREAS, changes were recently made to the business & occupation tax model ordinance which incorporates amendments to state law that were adopted since the model code was last updated in 2008; and WHEREAS, the City Council desires to amend its business and occupation tax code and related administrative provisions to incorporate into the city’s business & occupation code the changes to the business & occupation tax model ordinance, and to make other related amendments; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 3.86.200 of the Bremerton Municipal Code entitled "Public Disclosure – Confidentiality – Information Sharing" is hereby amended to read as follows: 3.86.200 PUBLIC DISCLOSURE – CONFIDENTIALITY – INFORMATION SHARING. (1) For purposes of this section, unless a different meaning is clearly established by context, the following definitions apply: (a) "Disclose" means to make known to any person in any manner whatever, a return or tax information. (b) "Tax information" means: (i) A taxpayer's identity; (ii) The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over assessments, or tax payments, whether taken from the taxpayer's books and records or any other source; (iii) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing; or (iv) Other data received by, recorded by, prepared by, or provided to the Director City with respect to a taxpayer; provided, that tax information shall not include the determination or the existence, or possible existence, of liability, or the amount thereof, of a person under the City’s tax codes defined in Section 3.86.015 BMC above for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Nothing in this chapter requires any person possessing data, 2 B & O Tax Code Updates 2012 material, or documents made confidential and privileged by this section to delete information from such data, material or documents so as to permit its disclosure. (c) “City agency” means every City office, department, division, bureau, board, commission, or other City agency. (d) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer. (2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the Director nor any other person may disclose any return or tax information. (3) This section does not prohibit the Director from: (a) Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding: (i) In respect of any tax imposed under City’s tax codes defined in Section 3.86.015 BMC above if the taxpayer or its officer or other person liable under this title is a party in the proceeding; or (ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding. (b) Disclosing, subject to such requirements and conditions as the Director prescribes by rules adopted pursuant to Section 3.86.160 BMC, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxp ayer must not be so disclosed if the Director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another p erson, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreem ent requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court; (c) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof; (d) Disclosing such return or tax information, for official purposes only, to the Mayor or City Attorney, or to any City agency, or to any member of the City Council or their authorized designees dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions; (e) Permitting the City’s records to be audited and examined by the proper state officer, his or her agents and employees; (f) Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sou ght or where otherwise allowed to be disclosed under this Section; 3 B & O Tax Code Updates 2012 (g) Disclosing any such return or tax information to the proper officer of the Internal Revenue Service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of the City; (h) Disclosing any such return or tax information to the United States Department of Justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies or their successors, for official purposes; (i) Publishing or otherwise disclosing the text of a written determination designated by the Director as a precedent pursuant to RCW 82.32.410; (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers and the active/closed status of such registrations, state or local business license registration identification and the active/closed status and effective dates of such licenses, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. Except that this subsection may not be construed as giving authority to the City or any recipient to give, sell, or provide access to any list of taxpayers for any commercial purpose; (k) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure; (l) Disclosing such return or tax information to the United States department of agriculture, or successor department or agency, for the limited purpose of investigating food stamp fraud by retailers; (m) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the CIity for a filed tax warrant, judgment, or lien against the real property; (n) Disclosing to a person against whom the department has asserted liability as a successor under Section 3.86.130 BMC return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded; (o) Disclosing real estate excise tax affidavit forms filed under Chapter 3.84 BMC in the possession of the City, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax; (p) Disclosing such return or tax information to the court or hearing examiner in respect to the City's application for a subpoena if there is probable cause to believe that the records in possession of a third party will aid the Director in connection with its official duties under this title or a civil or criminal investigation. (4) (a) The Director may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection, BMC 3.86.200(4). The disclosure must be in 4 B & O Tax Code Updates 2012 connection with the department's official duties under this Chapter, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents. (b) Before disclosure of any tax return or tax information under this subsection, BMC 3.86.200(4), the Director must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The Director may not disclose any tax return or tax information under this subsection, BMC 3.86.200(4), until the time period allowed in (c) below of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection. (c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the Director if the court determines that: (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive; (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner. (d) The Director must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. (e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section. (5) Service of a subpoena issued by the court does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the may disclose the existence or content of the subpoena to that person's legal coun sel. (6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the City and any person acquiring knowledge of any return or tax information as provided under subsection (3) (d), (e), (f), (g), (h), (i), or (k) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the City, such person must forfeit 5 B & O Tax Code Updates 2012 such office or employment and is incapable of holding any public office or employment in the City for a period of two years thereafter. (2) Tax returns and information are "public records" as that term is defined in RCW 42.17.020. The Director shall not disclose tax information if disclosure would violate Chapter 42.17 RCW or any other law prohibiting disclosure. (3) Tax information may be disclosed to the following: (a) The Mayor, members of the City Council, City Attorney, City Clerk, or their authorized designees, for official purposes; (b) Any agency or officer of the United States of America, the State of Washington, or a tax department of any state, county, city or town; provided, that the agency or officer grants substantially similar privileges to the City; and further provided, that the agency or officer shall not further disclose the tax information except as authorized in this section. (4) Nothing in this section shall prevent the use of tax information by the Director or any other agency in any civil or criminal action involving any license, tax, interest, or penalty. (5) A person disclosing tax information to a person not entitled to receive that information under this section is guilty of a misdemeanor, and if the person violating this privacy requirement is an officer or employee of the City, such person may be required to forfeit their office or employment. SECTION 2. Chapter 3.48 of the Bremerton Municipal Code entitled “Business and Occupation Taxes” is hereby amended to read as follows: Chapter 3.48 BUSINESS AND OCCUPATION TAXES 3.48.020 EXERCISE OF REVENUE LICENSE POWER. The provisions of this chapter shall be deemed an exercise of the power of the City to license and/or tax for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code. 3.48.025 BUSINESS LICENSE – REQUIRED. It is unlawful for any person to engage in business in the City without having first obtained a business license pursuant to Chapter 5.02 BMC. 3.48.028 ADMINISTRATIVE PROVISIONS. The provisions contained in Chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. 3.48.030 DEFINITIONS. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. 6 B & O Tax Code Updates 2012 (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: a product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.83.48015.85.020; plantation Christmas trees; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.02015.83.480, or a bird, or insect, or the substances obtained from such an animal. "Agricultural product" does not include animals intended to be pets. "Artistic or cultural organization." As used in this chapter: (1) The term "artistic or cultural organization" means an organization which is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (10) of this definition, for viewing or attendance by the general public. (2) The organization must be a not-for-profit corporation under Chapter 24.03 RCW. (3) The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation sole under Chapter 24.12 RCW. (4) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws. (5) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the State. (6) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a nonprofit organization, association, or corporation which also would be entitled to the exemption. (7) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation. (8) The amounts received that qualify for exemption must be used for the activities for which the exemption is granted. (9) Services must be available regardless of race, color, national origin, ancestry, religion, age, sex, marital status, sexual orientation, Vietnam or disabled veteran status, or the presence of any mental or physical disability. (10) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to: (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums; (b) A musical or dramatic performance or series of performances; or (c) An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject. "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. 7 B & O Tax Code Updates 2012 "Cash discount" means a deduction from the invoiced amount allowed by the seller if the bill is paid within a certain time period or before a specified date. "City" means City of Bremerton, Washington. "Commercial or industrial use" means the following uses of products, including by- products, by the extractor or manufacturer thereof: (1) Any use as a consumer; (2) Any use in the manufacturing of products including articles, substances or commodities. "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made. "Consumer" means the following: (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) Resale as tangible or intangible personal property in the regular course of business; (b) Incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; (c) Incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) Consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under BMC 3.48.050(1)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in this section other than for resale in the regular course of business; (5) Any person who is an end user of software; (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly owned street, place, road, highway, easement, right-of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right-of-way of a publicly owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly owned mass public transportation terminal or parking facility; 8 B & O Tax Code Updates 2012 (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in government contracting. Any such person shall be a consumer within the meaning of this definition in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person. Nothing contained in this or any other subsection of this definition shall be construed to modify any other definition of "consumer." "Deficiency" means the amount of tax imposed by law less any tax reported by the taxpayer on a tax return. "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the property or exercises dominion and control over the property. "Dominion and control" means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (RCW Title 62A) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. "Digital automated service," "digital code," and "digital goods" have the same meaning as in RCW 82.04.192. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b). "Director" means the Director of Financial Services of the City or any officer, agent or employee of the City designated to act on the Director's behalf. "Eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within BMC 3.48.050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and 9 B & O Tax Code Updates 2012 (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non-local jurisdiction above the County level. "Engaging in business," "nexus." (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1) of this definition. If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one (1) of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license pursuant to Chapter 5.02 BMC. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (c) Soliciting sales. (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, and veterinarians. 10 B & O Tax Code Updates 2012 (l) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training or recruiting employees, agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Except as provided in subsection (5) of this definition, delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (q) Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person's office or place of business is within or without the City. (4) Not Engaging in Business. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, that person is not engaging in business and therefore is not required to register and obtain a City business license pursuant to Chapter 5.02 BMC or pay City business and occupation taxes pursuant to this chapter: (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. (d) Renting tangible or intangible property as a customer when the property is not used in the City. (e) Attending, but not participating in, a trade show or multiple vendor events. Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g) Soliciting sales by phone from a location outside the City. (h) Providing language interpretive services to the Bremerton Municipal Court. (5) A business located outside the City merely delivering goods into the City by common carrier or other means, including use of its own vehicles, is not required to register and obtain a business license; provided, that it engages in no other business activities in the City. Such business activities do not include those in subsection (4) of this definition. (6) "Nexus." A person has created nexus with the City if, whether itself or by its employees, agents, representatives, independent contractors, brokers or others acting on its behalf, it: (a) Is physically present in the City; (b) Endeavors to maintain a share of the market within the City; or (c) Avails itself of the economic benefits of the City. The City expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the 11 B & O Tax Code Updates 2012 taxpayer benefits from the activity that constituted the original nexus-generating contact or subsequent contacts. "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, or takes, cultivates, or raises shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; persons cultivating or raising fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession; or persons who fell, cut, or take plantation Christmas trees from the person's own land or from land in which the person has a present right of possession; or persons meeting the definition of "farmer." "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. "Gross income of the business" means the value proceeding or accruing by reason of the business activity engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discounts, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discounts, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discounts paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "In this City" or "within this City" includes all federal areas lying within the corporate City limits of the City. "Janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal, sandblasting, or cleanup related to construction activities. 12 B & O Tax Code Updates 2012 "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty (20) percent of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire and not a manufacturer. A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) The production of special-made or custom-made articles; (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) Crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. "Newspaper," "magazine," "periodical." (1) "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. (2) "Magazine" or "periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. "Nonprofit corporation or nonprofit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended. Where the term "nonprofit organization" is used, it is meant to include a nonprofit corporation. "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over 13 B & O Tax Code Updates 2012 which the person exercises legal dominion and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address; (2) Containing a telephone line listed in a public telephone directory or other similar publication under the business name; (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate State and local business license or registration unless they are exempted by law from such requirement. A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of business above. If a person has no office or place of business, the person's home or apartment within the City will be deemed the place of business. "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof. "Port District" means a port district as defined in Chapter 53.04 RCW. "Precious metal bullion," "monetized bullion." "Precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this State, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art. "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty (20) percent or more of the total value of all materials or ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire. "Product," "by-product." (1) "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. (2) "By-product" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. 14 B & O Tax Code Updates 2012 "Reporting period" means: (1) A one (1) month period beginning the first day of each calendar month (monthly); or (2) A three (3) month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve (12) month period beginning the first day of January of each year (annual). "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquetball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. Amusement and recreation services also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons; (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Automobile parking and storage garage services; (5) Landscape maintenance and horticultural services but excluding (a) horticultural services provided to farmers and (b) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; (6) Service charges associated with tickets to professional sporting events; (7) The following personal services: physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services; and (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. "Royalties" means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. 15 B & O Tax Code Updates 2012 (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in subsection (1)(a), (b), (c), (d), or (e) of this definition following such use; or (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (8) of this definition, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under BMC 3.48.050(1)(g). (3) "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including 16 B & O Tax Code Updates 2012 the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services, which is taxed as a service in this chapter; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under Chapter 82.16 RCW; (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one (1) month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one (1) month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; (g) The installing, repairing, altering, or improving of digital goods for consumers; (gh) The sale of or charge made for tangible personal property, labor and services to persons taxable under subsections (3)(a), (b), (c), (d), (e), and (f) and (g) of this definition when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this definition and nothing contained in subsection (1) of this definition shall be construed to modify this subsection. (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5) "Sale at retail" or "retail sale" shall also include: (a) the sale of canned prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software. For purposes of this subsection, the sale of the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no sep arate sale of the key or code from the prewritten computer software, regardless of how the sale may characterized by the vendor or by the purchaser. For purposes of this subsection, the term “sale at retail” or “retail sale” does not include the sale of or charge made for: 17 B & O Tax Code Updates 2012 (i) Custom software; or (ii) The customization of prewritten software. (b) the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. This also includes the right to access and use prewritten software to perform data processing. For purposes of this subsection, subsection (5)(b), “data processing” means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the State, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind (public road construction). (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to Chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting). (8) "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. (9) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development. (This is reported under the service or other classification.) (10) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. (This is reported under the service and other classification.) (11) “Sale at retail” or “retail sale” shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: 18 B & O Tax Code Updates 2012 (a) Sales in which the seller has granted the purchaser the right of permanent use; (b) Sales in which the seller has granted the purchaser a right of use that is less than permanent; (c) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and (d) Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under this subsection, subsection (11), includes any services provided by the seller exclusively in connection with the digital goods, digital codes, o r digital automated services, whether or not a separate charge is made for such services. For purposes of this subsection, subsection (11), "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. (12) “Sale at retail” or “retail sale” shall also include the installing, repairing, altering, or improving of digital goods for consumers. "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, or the services described in subsection 5(b) which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale when rendered to or for consumers. "Sale at wholesale" also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. "Services" means any business activity other than or in addition to those defined in this section. "Software," "canned software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Canned software" means software that is created for sale to more than one (1) person. For purposes of this chapter, canned software is deemed to be tangible personal property regardless of the method of delivery: tangible media (e.g., disk or installed on hardware) or intangible (e.g., electronically over telecommunications paths). (2) "Custom software" means software created for a single person. (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of canned software does not change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are 19 B & O Tax Code Updates 2012 held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one (1) or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom. "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. "Tax year" or "taxable year" means the calendar year. "Taxpayer" means any person, as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the State and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for course work successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with Chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States Secretary of Education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. "Value of products." (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by- products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this State of similar products of like quality and character, and in 20 B & O Tax Code Updates 2012 similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or articles extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) of this definition, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. 3.48.040 AGENCY – SALES AND SERVICES BY AGENT, CONSIGNEE, BAILEE, FACTOR OR AUCTIONEER. (1) Sales in Own Name – Sales or Purchases as Agent. Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person's own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter. The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made. (b) The books and records show the amount of the principal's gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales. The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. (c) No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales. (d) Bulk goods sold or purchased on behalf of a principal must not be co- mingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been co-mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales. 21 B & O Tax Code Updates 2012 (2) If the above requirements are not met, the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer. (3) Services in Own Name – Procuring Services as Agent. For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured. Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made. (b) The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. 3.48.050 IMPOSITION OF THE TAX – TAX OR FEE LEVIED. (1) Imposition of the Tax – Tax or Fee Levied. Except as provided in subsection (2) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: (a) Extractor. Upon every person engaging within the City in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use, multiplied by the rate of one and six-tenths of one percent (0.0016). The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (b) Manufacturer. Upon every person engaging within the City in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured, multiplied by the rate of one and six-tenths of one percent (0.0016). The measure of the tax is the value of the products, including by-products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (c) Wholesale. Upon every person engaging within the City in the business of making sales at wholesale; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and six- tenths of one percent (0.0016). 22 B & O Tax Code Updates 2012 (d) Retail. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and one-quarter of one percent (0.00125). (e) Printing and Publishing. Upon every person engaging within the City in the business of (i) printing, (ii) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (iii) publishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one and nine- tenths of one percent (0.0019). (f) Retail Service. Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of two-tenths of one percent (0.002). (g) Service. Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of two-tenths of one percent (0.002). This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail or a sale at wholesale or a retail service. (2) Tax Exemption. (a) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by- products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than sixty thousand dollars ($60,000) (“Tax Exemption”). Persons with gross income exceeding sixty thousand dollars ($60,000) per year shall be taxed only on the amount of gross income exceeding sixty thousand dollars ($60,000) per year. (b) Beginning on January 1, 2013 and each year thereafter, the Tax Exemption set forth in subsection shall be increased by an additional twenty thousand dollars ($20,000”) for each year as follows: Year 2013 - the Tax Exemption shall be $80,000 Year 2014 - the Tax Exemption shall be $100,000 Year 2015 - the Tax Exemption shall be $120,000 Year 2016 - the Tax Exemption shall be $140,000 This formula for the Tax Exemption shall continue until no taxes are due to be received by the City in any tax year at which time the business and occupation tax shall terminate, unless the formula is modified as set forth in subsection (2)(c) below. (c) The tax reduction formula in subsection (2)(b) above may be; (i) Accelerated at any time, (ii) Stayed for a period of time as determined by the City Council upon findings by the City Council that fiscal and budget conditions of the City necessitate a stay of the tax reduction, or 23 B & O Tax Code Updates 2012 (iii) The business and occupation tax is terminated by ordinance adopted by the City Council. The actions by City Council to accelerate or stay implementation of the tax reduction is subsections 2(b)(i) and 2(b)(ii) above may be made by motion or other action of the City Council. (3) Job Credits. It is the intent of the City Council to encourage growth and attract new business to the City. To that end, the City Council finds that an incentive measured by a business's growth in jobs is a meaningful method of attracting and retaining such businesses. Therefore, the incentive in this section is specifically targeted at new full-time positions. A basic credit is made available to all businesses located in the City. (a) Subject to the limits in this section, an eligible person is allowed a credit against the tax due under this chapter. The credit is based on a qualified employment position located within the City. (i) The credit shall be five hundred dollars ($500.00) for each qualified employment position within the City, which positions were created on or after January 1, 2007, the "effective date." A credit is earned for the calendar year in which the employee is hired to fill the position, plus the four (4) subsequent consecutive years, if the position, along with the company's increased workforce of eligible persons, is maintained during the entire period. a. Credit may not be taken for hiring persons into positions existing on the effective date. Credit is authorized for new employees hired for new positions created on or after the effective date, which result in an increase in the total workforce of the business located in the City. New positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire. b. If filled before July 1st of any given year, a newly created position is eligible for a full yearly credit. If filled after June 30th, the position is eligible for only a half credit for the first calendar year. c. Credit may not be accrued and carried forward or back. No refunds may be granted for unused portion of credits under this section. If the position is filled during the calendar year, after the filing of a quarterly tax period, an amended first or third quarter tax return will be allowed, if appropriate, to qualify all the credit to which the employer is entitled for that year. (ii) For the purposes of this section: a. "Eligible person" means a person or company who resides in the City and is engaging in a business activity within the City. b. "Qualified employment position" means a permanent, full- time position with compensation of at least a "family wage" within twelve (12) months after the date of hire (allowing for training time and a probation period). If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full-time basis during a period not to exceed three (3) months if the employer is actively recruiting a replacement employee. c. "Family wage," beginning January 1, 2007, is seventeen dollars and eleven cents ($17.11) an hour. This is the annual average wage in Kitsap County for 2004, developed by the Washington State Employment Security Department, Labor Market and Economic Development Division ("ES202"). This amount will be adjusted annually beginning on January 1, 2008, by an amount equal to the increase in the Consumer Price Index ("CPI") for 24 B & O Tax Code Updates 2012 Urban Wage Earners, Tacoma-Seattle-Bremerton area, of the prior year. If the CPI increase is more than five (5) percent, a five (5) percent increase will be used in computing the basis. d. The purchase of an existing business does not create an allowance of the credit for existing positions. (iii) No application is necessary for the tax credit; however, information must be submitted for each new employee position for which credit is requested, and included with the first tax return in which the credit is claimed. The person must keep records necessary for the City to verify eligibility under this section. This information includes: a. Employment records, including Washington State and federal tax returns, for the current year and previous five (5) years; and b. Information relating to description of business activity engaged in at the eligible location by the employee. (b) If at any time the Director finds that an employer is not eligible or has lost eligibility for a tax credit under this section, the total amount of taxes for which a credit has been claimed for current and prior periods shall be immediately due. (4) The tax levied pursuant to this chapter shall be in addition to any other tax or fee that may be imposed or levied by the City of Bremerton. 3.48.060 DOING BUSINESS WITH THE CITY. Except where such a tax is otherwise levied and collected by the City from such person, there is hereby levied a tax on the privilege of accepting or executing a contract with the City. Such tax shall be levied and collected whether goods or services are delivered within or without the City and whether or not such person has an office or place of business within or without the City. Except as provided in BMC 3.48.077, as to such persons the amount of tax shall be equal to the gross contract price multiplied by the rate under BMC 3.48.050 that would otherwise apply if the sale or service were taxable pursuant to that section. 3.48.070 MULTIPLE ACTIVITIES CREDIT WHEN ACTIVITIES TAKE PLACE IN ONE (1) OR MORE CITIES WITH ELIGIBLE GROSS RECEIPT TAXES. This section provides a tax credit for taxpayers engaged in multiple taxable activities. This section provides a credit against eligible selling or manufacturing taxes imposed by the City for extracting or manufacturing taxes paid to the City or to any other local jurisdiction with respect to the same products. The tax credit does not depend upon whether a person that sells in the City extracts or manufactures in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The tax credit does not depend on whether a person that manufactures in the City extracts in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The credit is available to any person that pays an eligible gross receipts tax on the applicable activities, regardless of where it conducts business. The result of this section is that a city in which selling takes place gives up the tax to the manufacturing jurisdiction and the manufacturing jurisdiction gives up the tax to the extracting jurisdiction, whether those jurisdictions are inside or outside the State of Washington. (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of BMC 3.48.050 shall be taxable under each applicable subsection. (2) Notwithstanding anything to the contrary herein, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, 25 B & O Tax Code Updates 2012 and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied and that the taxpayer paid the amount of tax sought to be credited. (4) Credit for Persons That Sell in the City Products That They Extract or Manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid: (a) with respect to the manufacturing of the products sold in the City, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. (5) Credit for Persons That Manufacture Products in the City Using Ingredients They Extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. (6) Credit for Persons That Sell Within the City Products That They Print, or Publish and Print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. 3.48.075 DEDUCTIONS TO PREVENT MULTIPLE TAXATION OF MANUFACTURING ACTIVITIES AND PRIOR TO JANUARY 1, 2008, TRANSACTIONS INVOLVING MORE THAN ONE (1) CITY WITH AN ELIGIBLE GROSS RECEIPTS TAX. This section establishes deductions to be applied when a single taxable activity is taxable by more than one (1) jurisdiction that imposes an eligible gross receipts tax. To eliminate the possibility of the same sale or service being taxed more than once by cities that maintain nexus and an eligible gross receipts tax, the cities' deductions set forth in this section shall apply as follows: (1) Manufacturing – Person Manufacturing Products Within and Without. A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid with respect to manufacturing such products. (2) Goods and Services – Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity. For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one (1) jurisdiction may be entitled to a deduction as follows: (a) A taxpayer that has paid an eligible gross receipts tax with respect to a sale of goods or services to a jurisdiction in which the goods are delivered or the services are 26 B & O Tax Code Updates 2012 provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City. (b) If a taxpayer has not paid tax to the jurisdiction where the product is delivered or the service is provided, then no deduction is allowed. The sale shall be taxed by the city where the office or place of business that generated the sale is located. For both sales and services, the order of taxing rights is delivery city, first; and business office location, second. (c) Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one (1) jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill may deduct from the measure of the tax on those amounts the gross income used in measuring the eligible gross receipts tax paid to the other jurisdiction where the headquarters is located. (d) A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City. (e) For taxes due under this subsection (2) after January 1, 2008, see BMC 3.48.077. 3.48.076 ASSIGNMENT OF GROSS INCOME DERIVED FROM INTANGIBLES. Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). 3.48.077 ALLOCATION AND APPORTIONMENT OF INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE (1) JURISDICTION. Effective January 1, 2008, gross Gross income, other than persons subject to the provisions of Chapter 82.14A RCW, shall be allocated and apportioned as follows: (1) Location of Activity. Gross income derived from all activities other than those taxed as service or royalties under BMC 3.48.050(1)(g) shall be allocated to the location where the activity takes place. (2) Place of Delivery. In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. (3) In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: (a) The seller's place of business if the purchaser receives the digital product at the seller's place of business; (b) If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; (c) If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; (d) If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, 27 B & O Tax Code Updates 2012 including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and (e) If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. (4) If none of the methods in subsection (3) above for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided therein, then the City and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the City to use an alternative method. If taxpayer and the City are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products, then the City may employ an alternative method for allocating the income from the sale of digital products. (5) For purposes of subsections (3)(a) through (e), "Receive" has the same meaning as in RCW 82.32.730. (36) Allocation. Gross income derived from activities taxed as services and other activities taxed under BMC 3.48.050(1)(g) (Service) shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two (2). (a) Payroll Factor. The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the City if: (i) The individual is primarily assigned within the City; (ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty (50) percent or more of his or her service for the tax period in the City; or (iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty (50) percent or more of his or her service in any city and the employee resides in the City. (b) Service Income Factor. The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the City if: (i) The customer location is in the City; or (ii) The income-producing activity is performed in more than one (1) location and a greater proportion of the service-income-producing activity is performed in the City than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or (iii) The service-income-producing activity is performed within the City, and the taxpayer is not taxable in the customer location. (c) Other Allocation Methods. If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, 28 B & O Tax Code Updates 2012 that one (1) of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable: (i) Separate accounting; (ii) The use of a single factor; (iii) The inclusion of one (1) or more additional factors that will fairly represent the taxpayer's business activity in the City; or (iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. (4) Definitions. The definitions in this subsection apply throughout this section. (a) "Apportionable income" means the gross income of the business taxable under the service classifications of a cit y's gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less any exemptions or deductions available. (b) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal Internal Revenue Code. (c) "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. (d) "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. (e) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. (f) "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. (g) "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. (h) "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. (5) Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. 3.48.078 ALLOCATION AND APPORTIONMENT OF PRINTING AND PUBLISHING INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE (1) JURISDICTION. Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this State from which the taxpayer's business is directed or managed. As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the Department of Revenue. 29 B & O Tax Code Updates 2012 3.48.090 EXEMPTIONS. (1) Nonprofit Corporations or Nonprofit Organizations. This section shall not apply to nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons. (2) Health Maintenance Organization, Health Care Service Contractor, Certified Health Plan. Beginning on January 1, 2000, this chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. (3) Public Utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 3.50 BMC. (4) Investments – Dividends from Subsidiary Corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. (5) International Banking Facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this State, and which is incorporated and doing business under the laws of the United States or of this State, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631, or an agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 2.4.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 2.4.8 of Regulation D). (6) Insurance Business. This chapter shall not apply to amounts received by any person or agent who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the State pursuant to RCW 48.14.020; and provided further, that the provisions of this subsection shall not exempt any person engaging in the business of insurance as a broker as defined in RCW 48.17.020 or as a solicitor as defined in RCW 48.17.030; and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (7) Farmers – Agriculture. This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons. (8) Athletic Exhibitions. This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. (9) Racing. This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission. 30 B & O Tax Code Updates 2012 (10) Ride Sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. (11) Employees. This chapter shall not apply to: (a) Any person in respect to the person's employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter, as defined by RCW 18.16.020, is an independent contractor for purposes of this chapter. (12) Amounts Derived from Sale of Real Estate. This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer. (13) Mortgage Brokers' Third-Party Provider Services Trust Accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (14) Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle Fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempt under RCW 82.36.440; provided, that any fuel not subjected to the State fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (15) Amounts Derived from Liquor, and the Sale or Distribution of Liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (16) Casual and Isolated Sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. (17) Accommodation Sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (a) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article; and (b) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen (14) days to reimburse in kind a previous accommodation sale by the buyer to the seller. (18) Taxes Collected as Trust Funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third-party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. (19) Port District Business Activity. For the purpose of the tax imposed by BMC 3.48.050(1)(a) through (g), persons engaged in business on Port District owned property located within and zoned by the City with an industrial classification ("Port Property") shall be treated in the same manner as if the Port Property were located in unincorporated Kitsap County and therefore exempt from the tax; however, the apportionment and allocation, place of delivery and the appropriate tax provisions of this chapter shall apply for business activity occurring off the 31 B & O Tax Code Updates 2012 Port Property but within the City, also in the same manner as if the Port Property were located in unincorporated Kitsap County. (20) Three (3) Year Exemption for Annexed Businesses. This chapter shall not apply to any person with respect to a business activity conducted in an area that has become part of the City by annexation; provided, however, that the business premises of such person be located in the said area on the date of annexation; and provided further, that the exemption provided herein shall cease at the expiration of twelve (12) full calendar quarters following the date of such annexation. 3.48.100 DEDUCTIONS. In computing the license fee or tax, there may be deducted from the measure of tax the following items: (1) Compensation from Public Entities for Health or Social Welfare Services – Exception. In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 U.S.C. Section 1071 et seq., as amended, or amounts payable pursuant thereto. (2) Interest on Investments or Loans Secured by Mortgages or Deeds of Trust. In computing tax, to the extent permitted by Chapter 82.14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non-transient residential properties. (3) Interest on Obligations of the State, Its Political Subdivisions, and Municipal Corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof. (4) Interest on Loans to Farmers and Ranchers, Producers or Harvesters of Aquatic Products, or Their Cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities. (5) Receipts from Tangible Personal Property Delivered Outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. (6) Cash Discount Taken by Purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing 32 B & O Tax Code Updates 2012 classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions. (7) Credit Losses of Accrual Basis Taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (8) Repair, Maintenance, Replacement, Etc., of Residential Structures and Commonly Held Property – Eligible Organizations. (a) In computing tax, there may be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held property, but excluding property where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by: (i) A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership; (ii) An association of owners of property as defined in RCW 64.32.010, as now or hereafter amended, from a person who is an apartment owner as defined in RCW 64.32.010; or (iii) An association of owners of residential property from a person who is a member of the association. "Association of owners of residential property" means any organization of all the owners of residential property in a defined area who all hold the same property in common within the area. (b) For the purposes of this subsection "commonly held property" includes areas required for common access such as reception areas, halls, stairways, parking, etc., and may include recreation rooms, swimming pools and small parks or recreation areas; but is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc. (c) To qualify for the deductions under this subsection: (i) The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to the salary or compensation of like positions within the county wherein the property is located; (ii) Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be rebated to the members of the association; (iii) Assets of the association or organization must be distributable to all members and must not inure to the benefit of any single member or group of members. (9) Sales at Wholesale or Retail of Precious Metal Bullion and Monetized Bullion. In computing tax, there may be deducted from the measure of the tax amounts derived from the sale at wholesale or retail of precious metal bullion and monetized bullion. However, no deduction is allowed on amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, and no deduction or offset is allowed against such commissions on account of salaries or commissions paid to salesmen or other employees. (10) Amounts Representing Rental of Real Estate for Boarding Homes. In computing tax, there may be deducted from the measure of tax amounts representing the value of the rental of real estate for "boarding homes." To qualify for the deduction, the boarding home must meet the definition of "boarding home," and be licensed by the State of Washington under Chapter 18.20 RCW. The deduction shall be in the amount of twenty-five (25) percent of the gross 33 B & O Tax Code Updates 2012 monthly billing when the boarder has resided within the boarding home for longer than thirty (30) days. (11) Radio and Television Broadcasting – Advertising Agency Fees – National, Regional, and Network Advertising – Interstate Allocations. In computing tax, there may be deducted from the measure of tax by radio and television broadcasters amounts representing the following: (a) Advertising agencies' fees when such fees or allowances are shown as a discount or price reduction in the billing or that the billing is on a net basis, i.e., less the discount; (b) Actual gross receipts from national, network, and regional advertising or a "standard deduction" as provided by RCW 82.04.280; and (c) Local advertising revenue that represents advertising which is intended to reach potential customers of the advertiser who are located outside the State of Washington. The Director may issue a rule that provides detailed guidance as to how these deductions are to be calculated. (12) Constitutional Prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States. (13) Receipts from the Sale of Tangible Personal Property and Retail Service Delivered Outside the City but Within Washington. Effective January 1, 2008, amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property and retail service delivered to the buyer or the buyer's representative outside the City but within the State of Washington may be deducted from the measure of tax under the retailing, retail services, or wholesaling classification. (14) Professional Employer Services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. 3.48.120 TAX PART OF OVERHEAD. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. 3.48.125 RULES AND REGULATIONS. The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. 3.48.130 SEVERABILITY CLAUSE. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. 34 B & O Tax Code Updates 2012 SECTION 3. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the___________ day of ____________________, 2012 _________________________________ JIM McDONALD, Council President Approved this ________ day of ________________________, 2012 _________________________________ PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ ________________________________ SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the________ day of ______________________, 2012 EFFECTIVE the_________day of ______________________, 2012 ORDINANCE NO. ____________ R:\Legal\Legal\Ordinances\Finance\2012 B & O Tax Ordinances\B & O Tax Code Model Ordinance Updates 2012 - final.doc AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5200 adopting the Fiscal Year 2013 City of Bremerton Budget Study Session Date: Various COUNCIL MEETING Date: December 5, 2012 Department: Finance Presenter: Becky Hasart Phone: 360-473-5722 SUMMARY: The attached ordinance represents the proposed 2013 Fiscal Budget, with the slight adjustment requested from the November 28th workshop, for consideration. If adopted, this ordinance would become effective January 1, 2013. ATTACHMENTS: Ordinance No. 5200 of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. FISCAL IMPACTS (Include Budgeted Amount): The total 2013 budget for all funds is $113,553,408. STUDY SESSION AGENDA: ☐ No Discussion ☒ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☒ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5200 of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 11/02/12 1 2013 Budget ORDINANCE NO. 5200 AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2013, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. WHEREAS, State law, Chapter 35.33 RCW requires the City to adopt an annual budget and provides procedures for the filing of estimates, a preliminary budget, deliberations, public hearings, and final fixing of the budget; and WHEREAS, a preliminary budget for the fiscal year 2013 has been prepared and filed in the Office of the City Clerk for the City of Bremerton; public hearings have been held for the purposes of fixing the final City Budget; and the City Council has deliberated and has made adjustments and changes deemed necessary and proper; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That the 2013 Annual Budget for the City of Bremerton, Washington, on file in the office of the City Clerk, covering the period from January 1, 2013, through December 31, 2013, with regular revenues and unencumbered fund balances of $113,553,408 and expenditures and ending fund balances of $113,553,408 is hereby approved and adopted, and the respective amounts provided for in said budget for the several funds of the City of Bremerton are hereby fixed and adopted as follows: General Fund (001) City Council $ 340,929 Executive 364,662 Financial Services 1,147,119 Legal 979,431 Human Resources 383,512 Community Development 1,438,922 Municipal Court 1,427,534 City Auditor 173,168 Law Enforcement 9,713,071 Fire/Emergency Medical 8,363,145 2 2013 Budget Police/Fire Pension 2,493,000 General Facilities 743,223 General Parks 2,560,935 Engineering 2,089,047 Non-Departmental 2,373,398 Ending Fund Balance 2,341,558 Total General Fund $ 36,932,654 Arterial Street (101) 3,198,331 Street (102) 2,976,191 Contingency Reserve (103) 232,605 Lodging Tax (104) 486,962 Parking System (105) 1,351,995 Community Development Block Grant (106) 3,848,709 Abatement Revolving (108) 236,613 Police Special Projects (110) 829,238 Public Access Television (113) 516,219 Gift & Donations Fund (114) 74,761 Trial Improvement (116) 68,331 One Percent For Arts (117) 51,430 Conference Center Operating (120) 1,931,156 Bond Fund (201) 36,154 2010 LTGO (203) 644,493 2010 UTGO/LTGO - B (204) 1,071,784 Government Center LTGO (205) 245,300 General Government Capital Improvement (308) 438,862 Park Facilities Construction (310) 608,616 Evergreen Park Remediation (311) 31,031 Lower Wheaton Way (331) 382,995 Water Utility (401) 9,951,038 Water Capital (404) 4,322,971 Wastewater Utility (451) 15,617,028 Wastewater Capital (454) 6,479,106 Stormwater Utility (481) 2,801,878 Gorst Creek Watershed (482) 355,964 Stormwater Capital (484) 2,770,992 Gold Mountain Golf Complex (407) 2,123,656 3 2013 Budget Risk Management (503) 3,395,236 Employment Security (506) 334,954 Accumulated Leave Liability (507) 273,106 Equipment Rental Reserve – Operations & Maintenance (509) 1,764,284 Equipment Rental Reserve – Equipment Reserves (510) 5,939,934 Information Services (511) 1,228,831 Total All Funds $ 113,553,408 SECTION 2. That the totals for the funds noted in Section 1 above and as set forth in the official "City of Bremerton 2013 Annual Budget” adopted herein, are hereby appropriated for the fiscal year 2013. SECTION 3. Effective January 1, 2013, the annual compensation of the Municipal Court Judge shall be $134,625.00 which is 95% of the District & Superior Court salaries as established on September 1, 2011. SECTION 4. Effective January 1, 2013, the “management, professional, confidential & fiduciary” pay plans shall not receive a cost of living adjustment over the 2012 pay rates. SECTION 5. Effective January 1, 2013, the base salary of the Mayor shall be $122,425.00 which represents no increase over the 2012 base salary. SECTION 6. Nothing contained herein shall be construed to require the City of Bremerton or its officers to fill any vacancy in any of the positions established by this ordinance resulting from the discharge, resignation or retirement of such employee. Nothing herein contained shall require the City of Bremerton or its officers to pay the maximum amount budgeted for any position shown therein. SECTION 7. Severability. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 8. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. 4 2013 Budget PASSED by the City Council the___________ day of ____________________, 2012 _________________________________ JIM MCDONALD, Council President Approved this ________ day of ________________________, 2012 _________________________________ PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ ________________________________ SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the________ day of ______________________, 2012 EFFECTIVE the_________day of ______________________, 2012 ORDINANCE NO. ____________ BEG LIC. INTER- CHARGES FINES 2013 FUND AND GOV'T FOR AND OTHER TOTAL FUND BAL. TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET General Fund General Government: City Council 00 0135,605 00135,605 Executive 00 0145,044 00145,044 Financial Services 2,779,466 356,625 0 551,827 39,000 0 3,726,918 Legal 00 0427,602 00427,602 Human Resources 00 0152,542 00152,542 Community Development 0 230,500 0 113,250 00343,750 Municipal Court 001,000 453,500 505,000 40,500 1,000,000 City Auditor 00 067,999 0067,999 Law Enforcement 0 7,000 207,443 402,300 5,000 8,600 630,343 Fire/Emergency Medical 1,207,000 1,200 1,750 580,400 1,000 4,800 1,796,150 Police & Fire Pension 0045,500 00 045,500 General Facilities 00 0143,486 0 46,080 189,566 Parks 00 0340,530 0 52,500 393,030 Engineering 0 40,000 0 1,715,217 001,755,217 Non-Departmental 17,910,512 145,500 389,009 900 566,500 4,237,820 23,250,241 Beginning Fund Balance 2,873,147 2,873,147 Total General Fund 2,873,147 21,896,978 780,825 644,702 5,230,202 1,116,500 4,390,300 36,932,654 Special Revenue Funds: Arterial Street 289,831 002,508,500 00400,000 3,198,331 Street 446,341 455,000 0 1,207,550 445,000 0 422,300 2,976,191 Contingency Reserve 232,305 00000300 232,605 Lodging Tax 96,862 390,000 0000100 486,962 Parking System 213,645 00 0350 250,000 888,000 1,351,995 Comm. Dev. Block Grant 1,440,816 002,289,793 30,000 0 88,100 3,848,709 Abatement Revolving Fund 230,613 00 05,500 0 500 236,613 Police Special Projects 740,038 000018,000 71,200 829,238 Public Access Television 141,319 0 240,000 38,000 96,700 0 200 516,219 Gift & Donations Fund 68,136 00 01,500 0 5,125 74,761 Trial Improvement 46,331 0022,000 00 068,331 One Percent for Arts 51,330 00000100 51,430 Conference Center Oper 385,982 00 01,381,674 0 163,500 1,931,156 Total Spec. Rev. Funds 4,383,549 845,000 240,000 6,065,843 1,960,724 268,000 2,039,425 15,802,541 Debt Service Fund: Bond Fund 10,011 25,943 0000200 36,154 2010 LTGO 153,408 330,000 0 120,085 0041,000 644,493 2010 UTGO/LTGO (B) 47,409 809,000 0 37,675 00177,700 1,071,784 Government Center LTGO 3,652 00000241,648 245,300 Total Debt Service Fund 214,480 1,164,943 0 157,760 0 0 460,548 1,997,731 Capital Improvement Funds: General Govt Capital Improv. 138,712 300,000 0000150 438,862 Park Facilities Construction 447,766 00000160,850 608,616 Evergreen Park Remediation 2,531 0024,000 004,500 31,031 Lower Wheaton Way 357,045 0025,950 00 0382,995 Total Capital Improv. Funds 946,054 300,000 0 49,950 0 0 165,500 1,461,504 2013 REVENUE SOURCES - ALL FUNDS 12/3/2012 BEG LIC. INTER- CHARGES FINES 2013 FUND AND GOV'T FOR AND OTHER TOTAL FUND BAL. TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET 2013 REVENUE SOURCES - ALL FUNDS 12/3/2012 Enterprise Funds: Water Utility 693,879 00 08,954,500 0 302,659 9,951,038 Water Capital 3,858,671 00000464,300 4,322,971 Wastewater Utility 1,965,493 16,735 0013,626,500 0 8,300 15,617,028 Wastewater Capital 4,447,321 000002,031,785 6,479,106 Stormwater Utility 438,478 00 02,362,000 0 1,400 2,801,878 Gorst Creek Watershed 93,604 00261,670 00690 355,964 Stormwater Capital 2,537,695 00000233,297 2,770,992 Gold Mountain Golf Complex 45,456 00 01,975,000 0 103,200 2,123,656 Total Enterprise Funds 14,080,597 16,735 0 261,670 26,918,000 0 3,145,631 44,422,633 Internal Service Funds: Risk Management 1,861,723 000001,533,513 3,395,236 Employment Security 102,554 00000232,400 334,954 Accumulated Leave Liability 38,206 00000234,900 273,106 ER&R Operations & Maint. 185,644 00 01,578,000 0 640 1,764,284 ER&R Equipment Reserve 5,881,134 0000058,800 5,939,934 Information Services 127,858 00 01,100,973 001,228,831 Total Internal Service Funds 8,197,119 0 0 0 2,678,973 0 2,060,253 12,936,345 Total Non-General Funds 27,821,799 2,326,678 240,000 6,535,223 31,557,697 268,000 7,871,357 76,620,754 Total All Funds 30,694,946 24,223,656 1,020,825 7,179,925 36,787,899 1,384,500 12,261,657 113,553,408 Beginning Fund Balance $30,694,946 27% Taxes $24,223,656 21% Licenses & Permits $1,020,825 1% Intergovernmental $7,179,925 6% Charges for Service $36,787,899 33% Fines & Forfeits $1,384,500 1% Other Revenue $12,261,657 11% Revenue Sources - All Funds 1/0/1900 2013 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL. BUDGET General Fund General Government: City Council 317,000 23,929 000 340,929 Executive 287,100 77,562 000 364,662 Financial Services 850,900 296,219 000 1,147,119 Legal Department 872,000 107,431 000 979,431 Human Resources 232,800 150,712 000 383,512 Community Development 1,074,100 354,822 0010,000 1,438,922 Municipal Court 860,600 566,934 000 1,427,534 City Auditor 165,100 8,068 000 173,168 Law Enforcement 8,209,900 1,503,171 000 9,713,071 Fire/Emergency Medical 7,518,400 844,745 000 8,363,145 Police & Fire Pension 2,201,000 292,000 000 2,493,000 General Facilities 210,342 467,881 0 65,000 0 743,223 General Parks 1,827,200 733,035 700 00 2,560,935 Engineering 1,913,272 175,775 000 2,089,047 Non-Departmental 0 2,291,750 0081,648 2,373,398 Ending Fund Balance 2,341,558 2,341,558 Total General Fund 26,539,714 7,894,034 700 65,000 91,648 2,341,558 36,932,654 Special Revenue Funds: Arterial Street 0003,070,000 0 128,331 3,198,331 Street 1,089,700 1,236,157 0 475,000 0 175,334 2,976,191 Contingency Reserve 00000232,605 232,605 Lodging Tax 0 226,000 00170,000 90,962 486,962 Parking System 0 655,491 510,304 0 80,000 106,200 1,351,995 Comm. Dev. Block Grant 115,200 2,125,323 00160,850 1,447,336 3,848,709 Abatement Revolving Fund 0 42,000 000194,613 236,613 Police Special Projects 0 438,902 0 50,000 0 340,336 829,238 Public Access Television 238,600 58,210 0 38,000 25,000 156,409 516,219 Gift & Donations Fund 0 10,100 00064,661 74,761 Trial Improvement 0 23,000 00045,331 68,331 One Percent for Arts 0 500 0 10,000 0 40,930 51,430 Conference Center Oper 0 1,559,053 000372,103 1,931,156 Total Spec. Rev. Funds 1,443,500 6,374,736 510,304 3,643,000 435,850 3,395,151 15,802,541 Debt Service Fund: Bond Fund 0000036,154 36,154 2010 LTGO 00548,480 0096,013 644,493 2010 UTGO/LTGO (B)001,063,750 008,034 1,071,784 Government Center LTGO 00243,300 002,000 245,300 Total Debt Service Fund 0 0 1,855,530 0 0 142,201 1,997,731 Capital Improvement Funds: General Govt Capital Improv.0000345,000 93,862 438,862 Park Facilities Construction 000160,850 0 447,766 608,616 Evergreen Park Remediation 00030,000 0 1,031 31,031 Lower Wheaton Way 00030,912 0 352,083 382,995 Total Capital Improv. Funds 0 0 0 221,762 345,000 894,742 1,461,504 2013 EXPENDITURES - ALL FUNDS 1/0/1900 2013 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL. BUDGET 2013 EXPENDITURES - ALL FUNDS Enterprise Funds: Water Utility 3,738,200 3,421,173 709,819 0 1,505,100 576,746 9,951,038 Water Capital 0003,837,000 0 485,971 4,322,971 Wastewater Utility 2,599,200 4,114,346 2,809,689 0 4,600,485 1,493,308 15,617,028 Wastewater Capital 0005,305,000 0 1,174,106 6,479,106 Stormwater Utility 784,500 883,422 14,599 0 472,400 646,957 2,801,878 Gorst Creek Watershed 0 350,000 0005,964 355,964 Stormwater Capital 000753,000 0 2,017,992 2,770,992 Gold Mountain Golf Complex 0 1,792,380 283,600 0047,676 2,123,656 Total Enterprise Funds 7,121,900 10,561,321 3,817,707 9,895,000 6,577,985 6,448,720 44,422,633 Internal Service Funds: Risk Management 240,000 1,289,177 0001,866,059 3,395,236 Employment Security 180,000 0000154,954 334,954 Accumulated Leave Liability 200,000 000073,106 273,106 ER&R Operations & Maint 504,800 1,126,817 000132,667 1,764,284 ER&R Equipment Reserves 000384,000 0 5,555,934 5,939,934 Information Services 536,200 541,467 0 85,000 0 66,164 1,228,831 Total Internal Service Funds 1,661,000 2,957,461 0 469,000 0 7,848,884 12,936,345 Total Non-General Funds 10,226,400 19,893,518 6,183,541 14,228,762 7,358,835 18,729,698 76,620,754 Total All Funds 36,766,114 27,787,552 6,184,241 14,293,762 7,450,483 21,071,256 113,553,408 Personnel $36,766,114 32% Supplies & Services $27,787,552 24% Debt Service $6,184,241 5% Capital Outlay $14,293,762 13% Transfers $7,450,483 7%Ending Fund Balance $21,071,256 19% Expenditures - All Funds