HomeMy WebLinkAbout10/02/2013 AGENDA pogo or)
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CITY COUNCIL 345 6w Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360) 473 -5280
OCTOBER 2, 2013
CITY COUNCIL MEETING AGENDA
1 BRIEFING 5 00 — 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 MAYOR'S REPORT (Approx 10- Minutes)
4 BRIEFINGS
A Grant Funded Park Improvements — Kaleen Cottingham, Director, Washington State
Recreation and Conservation Office (Approx 5- Minutes)
B `� ,
Postponed to October 16
C Summary of Parks & Recreation Funding Task Force Report — Cary Bozeman, Chair of
Bremerton Parks & Recreation Funding Task Force Committee (Approx 10- Minutes)
5 PUBLIC RECOGNITION
6 CONSENT AGENDA
A Claims & Check Register
B Minutes of Meeting — September 18, 2013
C Minutes of Study Session — September 25, 2013
D Resolution No 3203 to approve the Interlocal Agreement to adopt the Association of
Washington Cities (AWC) Health Care Program
E Resolution No 3204 to establish November 6, 2013 as a Hearing Date to vacate portions
of the alley and 4 Street for the Park Plaza Project
F Contract Award to IMCO General Construction, Inc for the Construction of the Warren
Avenue Bridge Water Main Replacement Project
7 PUBLIC HEARING
A 2 of 2 Public Hearings to approve Letter of Agreement and Lease for Pendergast Park
Soccer Field with West Sound FC Premier Soccer Club No action Date to be determined
8 GENERAL BUSINESS
A Ordinance No 5224 to establish a Fiscal Policy regarding the use of Utility Tax Revenue
and Payment in Lieu of Property Tax (PILOT)
9 COUNCIL MEMBER REPORTS
10 EXECUTIVE SESSION — The Council will convene for a 30- minute Executive Session to
discuss 'Potential Litigation" per RCW 42 30 11 0(l)(1) Action is anticipated
11 ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING
® Amencans 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
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Mayor Patty Lent
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345 6th Street Suite 600
Bremerton WA 983371873
Proclamation
WHEREAS, every October, America stands in solidarity with those battling breast
cancer and those at risk for breast cancer This disease touches every corner of the United States
-- in 2013 alone, more than 230,000 women and over 2,000 men will be diagnosed with breast
cancer, and tens of thousands will die from it As we observe Breast Cancer Awareness Month,
we salute the women and men who dedicate themselves to prevention, detection, and treatment,
we show our support for every individual and every family struggling with breast cancer, and we
pause to remember those we have lost, and
WHEREAS, over the past two decades, our Nation has made strides in the fight against
breast cancer While we still do not know the exact causes, we do know that some women are at
an increased risk of developing this disease, including those who have a personal or family
history, who are older, or who are overweight or obese after menopause Because early detection
can decrease the risk of death from breast cancer, I encourage women to speak with their doctors
about recommended mammograms and clinical breast exams, and
WHEREAS, this month, we reaffirm our commitment to reduce the burden of breast
cancer We loin hands with our mothers, daughters, sisters, and friends We renew our support
for increased access to screenings and care, and we advance the innovative research that will
usher in a new era in the fight against breast cancer
NOW, THEREFORE, 1, Patty Lent, Mayor of the City of Bremerton do hereby proclaim
October 2013 as Breast Cancer Awareness Month I encourage citizens, government agencies,
private businesses, nonprofit organizations, and all other interested groups to loin in activities
that will increase awareness of what can be done to prevent breast cancer
SIGNED this 1 day of October 2013
Mayor a Lent
Lie
Bremerton Parks & Recreation Funding Task Force Report
Task Force Members.
Chair Cary Bozeman, DeWayne Boyd, Leslie Daugs, Angela Flesher, Jon Flesher, Rev Richmond Johnson,
John Larson, Virginia McBride, Teresa McDermott, Kathy Nelson, Kasey O'Leary, Colleen Smidt, Marie
Vila, Ken Ward, and Alexandra Welch
Task Force Process Summary
The TF met monthly between January and July of 2013 The first several meetings contained reports by
Parks staff on current responsibilities and historical funding and staffing levels overtime On March 21,
2013 the Task Force sponsored a widely advertised public meeting that attracted approximately 50
residents who commented on their thoughts regarding the current state of parks, parks facilities and
programs A summary of the citizen comments from this meeting is attached to this report In April staff
presented itemized service reductions that have taken place as a result of budget cuts which began with
the onset of the 2008 recession The TF members prioritized restoration of these items through a
ranking process Highest ranked service restorations included 1) free summer playground programs, 2)
restoration of capital funds used for grant matching, 3) restoration of park and street lawn, tree and
shrub care programs, and 4) Funding to replace obsolete or broken play area equipment At the May
meeting members began an earnest debate concerning methods /options of increasing park and
recreation funding levels After receiving an overview of the city's 5 year general fund revenue and
expense projection it became evident that the general fund likely will not have the capacity to shoulder
a substantial increase in parks services The TF discussed the potential for a levy, for decreasing services
to fit current budget constraints and a multi- pronged approach to raising community volunteer
involvement and outside funding presented by TF member John Larson The TF membership did not
achieve a consensus for a single solution to the Parks and Recreation Services funding issue However
the majority of the group agreed with the following findings
Park and Recreation Department staffing has not kept pace with responsibilities
Adopted City documents show Parks and Recreation has the same number of full time staff as it did in
1977 Since that time responsibilities have grown to include a number of new parks, streetscapes, plazas
and administrative requirements
Parks and Recreation Operating Budgets have been reduced from prerecession level of $3 2 million to
$2 6 million dollars
While a portion of the reduction involves taking the pool off of the operating budget through contract
management with the YMCA, inflation since 2008 in the cost of personnel benefits, supplies and utility
costs has amplified the budget reduction considerably
� There is a significant issue with deterioration of Infrastructure at aging facilities owing to a lack of
capital investment.
The city's community center and senior center alone have identified improvement needs in excess of
one million dollars The community center needs are identified in a report from Art Anderson and
Associates Older parks including but not limited to Warren Avenue, Manette Playfield, Forest Ridge,
NAD and Sheridan have deficient play equipment, irrigation systems, restrooms, parking facilities and
i
sports court areas Staff have done a fine fob of aggressively pursuing grant dollars to renovate Kiwanis,
Lions, Matan, Stephenson Canyon and Blueberry Parks However the Department currently does not
have capital funding to meet the match requirements for state and federal grants Without an influx of
capital, facilities will deteriorate to a point where they are not attractive for use and become unsafe in
other areas (boat launches, docks, playgrounds, picnic shelters, paved parking and trails In addition
deterioration of revenue producing facilities (softball fields, soccer fields, gymnasiums) increases budget
shortfalls by hurting department revenue collection potential
Community Volunteerism contributes toward a solution, however it will not solve the issue the park
funding issue
Volunteerism is at a high point for Bremerton with organizations taking on stewardship of Forest Ridge
Park, NAD Park, Kiwanis Park, Lions Park portions of Ivy Green Cemetery and Evergreen Rotary Park The
SUMS group (seniors uncovering money solutions) continues volunteer staffing and capital support of
the Senior Citizen Center However volunteers typically do not carry out the routine scheduled tasks of
cleaning restrooms, emptying trash receptacles, mowing large areas, repairing playgrounds, structural
repair of buildings including parking lots, HVAC systems, plumbing and roof repair The Park Department
also incurs costs by providing trash bags, gloves, paint, small tools and other supplies to volunteers The
City should continue to pursue volunteerism opportunities as a portion of the overall solution In
addition to the work performed, it also raises awareness of the Parks funding shortfall
A compendium of ideas was brought forward as helpful steps to achieve an adequate level of Parks
funding
The plan brought forward by John Larson who serves both on the Parks Commission and the TF includes
1) Creation of enterprise funds for revenue generating activities 2) Quantification of
operating \maintenance expenses for specific parks and facilities 3) Increase volunteerism and begin a
Park Foundation 4) Partnerships with outside entities to maintain parks and provide activities 5) Become
active in the development of SKIA to develop park services 6) Emphasis the Parks Department's role as a
community and neighborhood building block 7) Leverage funding from non - traditional sources like
transportation, housing, storm water and public health 8) Strengthen the Department's environmental
stewardship role 9) Propose a strategic levy for high profile capital projects like the Sheridan Center and
Senior Center There was agreement that many of these steps would be helpful in raising the
department's profile, increasing revenue and volunteerism and could enhance the chances of future levy
passage Many of the steps are in progress and others require a considerable staff and resource
commitments that may not be available at this puncture in time
A Voter approved levy will be needed at some point in time to augment current funding for
Bremerton Park and Recreation facilities and Services
There are concerns with the city's history of not having passed a stand -alone park and recreation levy in
its history, this may be related to lower comparative income levels and higher percentage of transient
population owing to military facilities Timing with School, EMS and Fire levies must also be considered
A reasonable levy not to exceed 30 to 40 cents per thousand in assessed value, timed correctly with the
right groundwork including polling and campaign is likely a necessary park funding component
BREMERTON PARKS AND RECREATION COMMISSION
6 680 LEBO BOULEVARD BREMERTON WA 98310 -5841
TEL 360 473 5305, FAX 360 473 5882 • www ci bremerton wo us
• " Commitfedto Z'nricknJc .Ci fe in �Sremedon"
September 24, 2013
To Bremerton City Council and Mayor Patty Lent
RE Advisory Report on pending lease of the soccer fields at Pendergast Regional Park to WestSound FC
Per the procedures contained within "The Ordinance Providing Protection for Bremerton's Parks, Play
Fields, Open Spaces and Recreation Facilities" (BMC 13 12), the Bremerton Parks and Recreation
Commission is pleased to present this Advisory Report on the proposed lease of the outdoor soccer fields
located at Pendergast Regional Park for your consideration
The Parks and Recreation Commission has reviewed the proposal to lease the two outdoor soccer fields
located at Pendergast Regional Park to WestSound FC and believe that it is in the best interest of the City
and the Parks and Recreation Department to proceed with tlus We find that this lease would
improve the soccer fields to the quality level (all weather artificial turf surfacing) that was initially
envisioned for these fields and that the recreational needs of the residents of Bremerton would be better
served We also do not find that this lease would constitute a "Significant Change in Use "* of this
portion of the park *A Significant Change in use shall mean any activity which does not compliment or
support a recreational activity (BMC 13 12 030)
In its review, the Commission has considered this proposal at two of its regularly scheduled Commission
meetings
• January 24, 2013 Meeting Presentation and discussion on Proposed Lease and Improvements to
Pendergast Soccer Fields
• April 23, 2013 Meeting Presentation and discussion of the draft Pendergast Soccer Field Lease and
Memo of Understanding Motion was made to approve the Lease and Memo of Understanding as
discussed with the Commission and recommend it to City Council Wheeler /Smidt (M/S/U)
• May 25, 2013 Meeting Presentation and discussion of the final draft proposed lease and letter of
understanding including the addressing of comments from the City Council's June 5, 2013 Study
Sessions
• September 24, 2013 Meeting Discussion was held regarding the outstanding issues of public access
and Olympic Soccer and Sports Center owner group support for the lease agreement A motion was
made to approve the Advisory Report on the Pendergast Soccer Field Lease to WestSound FC and to
forward it to the Mayor and City Council Dollar /Watson (M/S/U)
If you have any questions, the Commission is ailable
�/ , �� \ 11?1, 4
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rj, o arson i e air, Elizabeth "Sunny" Wheeler
Rob of Ri hard NeK
olleen Smidt Christopher Warthen
Patrick Watson
AGENDA BILL
CITY OF BREMERTON (*A
CITY COUNCIL
■■ mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmaI
SUBJECT Claims & Check Register Study Session Date
COUNCIL MEETING Date October 2, 2013
Department Financial Services
Presenter Shannon Corin
Phone 473 -5323
SUMMARY Approval of the following checks and electronic fund transfers
1) Check #'s 355253 through 355425 and EFT's 13190 through 13235 in the amount of
$2,427,754 46
2) Retiree Payroll for the pay period ending September 30, 2013 in the amount of $56,227 27
ATTACHMENTS
FISCAL IMPACTS (Include Budgeted Amount)
STUDY SESSION AGENDA px No Discussion ❑ Full Presentation
STUDY SESSION ACTION ❑x 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
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
0 ■ E0E0E00M00a0000M00M0000N00Mwa00000E000xff00NM00000000N00000E0EEffN00000a0N0N000wN00ffffaaI
SUBJECT Minutes of Meeting — Study Session Date
September 18, 2013 COUNCIL MEETING Date October 2, 2013
Department City Council
Presenter Greg Wheeler
Council President
Phone (360) 473 -5280
SUMMARY Attached is the summary of the City Council Meeting
ATTACHMENTS Meeting Minutes
FISCAL IMPACTS (Include Budgeted Amount)
STUDY SESSION AGENDA ❑x No Presentation ❑ Full Presentation
STUDY SESSION ACTION IN 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 01/25/13
DIGITAL RECORDING
CITY COUNCIL MEETING MINUTES
Wednesday, September 18, 2013
The weekly meeting of the City Council of the City of Bremerton was called to order
Wednesday, September 18, 2013, at 5 00 PM in the Council Conference Room 603 of the
NORM DICKS GOVERNMENT CENTER, 345 6 Street, Bremerton, Washington, with Council
President Greg Wheeler presiding Council Members present were Nick Wofford, Eric
Younger, Carol Arends, Faye Flemister, Adam Brockus, Leslie Daugs, and Jim McDonald
Council Member Wendy Priest was absent Also present were Assistant City Attorney Mark
Koontz, City Clerk Shannon Conn, Legislative Assistant Lori Smith, and Information Services
Manager Kevin Matthew
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 Jim McDonald followed by the
invocation provided by Pastor Eric Roberts of New Life Assembly
President Wheeler announced that the screen is still in the process of being repaired
MAYOR'S REPORT — Mayor Patty Lent
• Brought forward Pat Coxon Wastewater Treatment Plant Manager to present an
"Outstanding Wastewater Treatment Plant' Award from the Department of Ecology (DOE)
in recognition of the City's wastewater collection systems for the 8 year in a row,
• Proclaimed the Month of October 2013 as "Anti- Bullying Month';
• Introduced Tex Lewis from the West Sound Entertainment Association, who invited the
Council Members to an upcoming concert on Thursday, October 17 at 7 30 PM in hopes of
gaining support from the community,
• Announced a Mayoral Candidates Forum would be hosted on October 17 by the League of
Women Voter's,
• Thanked volunteers who participated in the Beautify Bremerton event on September 15th,
• Proclaimed September 29, 2013 as "National Public Lands Day ",
• Introduced Yvonne Kraus RePower Program Manager with Conservation Services Group,
who was thrilled to announce that RePower has received a grant extension allowing the
program to continue through the end of December, and invited the public to a free one -day
event "RePower Novi' on Saturday, October 12 from 10 00 AM to 4 00 PM at the Bremerton
Sons of Norway Oslo Lodge located at 1018 18 Street,
• Introduced Patricia Hennessey Executive Director of the Youth Wellness Campus, to
provide an update on the new Center,
• Invited the community to attend the "Walk to End Alzheimer's" on Saturday, September 28
beginning with registration at 8 30 AM at Evergreen Rotary Park, the South Puget Sound
Boys & Girls Club "Bremerton Teen Centei" Dedication at 3102 Wheaton Way on Friday,
October 18 at 3 30 PM, and the Open House for the Proposed Kitsap Conference Center
Expansion on Thursday, September 26 from 5 00 to 7 00 PM, and
• Thanked members of VFW Post 239 for offering to provide maintenance for the Kitsap 9/11
Memorial, and brought them forward for photos with her and the Council Members
Police Chief Strachan provided a monthly briefing on the Bremerton Police Department
Representative Jan Angel Legislative District No 26 provided an update on Legislative Issues
affecting Kitsap County
City Council Reg Mtg Minutes
Wednesday, September 18, 2013
Page 2 of 4
PUBLIC RECOGNITION
Robert Parker thanked the City for not installing the electric car chargers which now appears to
be a good decision since the company that produces the chargers has filed for bankruptcy
Dianne Robinson urged the Council to delay their decision on the renaming of 7 th Street in
honor of Dr Martin Luther King, Jr until they have considered a second proposal recently
submitted
Jerry McDonald attended an excellent Roger Brooks webinar titled "Bring your Downtown to
Life, and announced that the next webinar "The Rules of Business and Community Signage"
will be held on September 25 beginning at 10 00 AM at SEEfilm Cinema He also asked for
suggestions on how to increase attendance at the remaining webinars
CONSENT AGENDA
7A — Claims & Check Register Check Numbers 355010 through 355252, and EFT -13151
through EFT -13189 in the amount of $3,293,242 20, and Regular Payroll for the pay
period ending September 15, 2013 in the amount of $673,585 44
713 — Minutes of Meeting — September 4, 2013
7C — Ordinance No 5223 to repeal and replace Chapter 10 40 of the Bremerton Municipal
Code (BMC) with Chapter 10 20 entitled "Commute Trip Reduction Plan"
7D — Institutional Controls Plan and Environmental Covenant for former Chevron Property
There were no comments from the public
06 40 48 M /S /C /U (McDonald/Wofford) Move to approve the CONSENT AGENDA as presented
PUBLIC HEARINGS
8A -1 OF 2 PUBLIC HEARINGS TO APPROVE LETTER OF AGREEMENT AND LEASE
FOR PENDERGAST PARK SOCCER FIELD WITH WEST SOUND FC PREMIER SOCCER
CLUB Wvn Birkenthal Parks & Recreation Director, explained that the Pendergast Soccer
Fields have been an underused asset since they were constructed in the 1990's West Sound
FC has agreed to make artificial turf improvements to the two fields in return for a lease
allowing West Sound FC to collect revenue from field scheduling once the turf is installed
Additionally, the City would receive $13,537 00 per year in compensation and maintenance fees
for the duration of the agreement, and the payment amount will be adjusted for inflation He
further added that public use of the fields is guaranteed under Section 2 1 of the lease, no
action will be taken tonight, and a second hearing will be held at the City Council meeting on
October 2 to receive further public comment before action is taken
President Wheeler opened the public hearing Comments were provided by Dale Ho/dren
President of West Sound FC, John Larson Chair of the Bremerton Parks Commission, Jim
van Antwerp Fields Today and Fit to Mow, and Charity Reed
With no further comments, President Wheeler closed the public hearing
GENERAL BUSINESS
9A — ACCEPTANCE OF IMPROVEMENTS FOR THE KITSAP 9/11 MEMORIAL. AND
AGREEMENT FOR TRANSFER OF TWO WORLD TRADE CENTER STEEL BEAMS Wvn
Birkenthal Parks & Recreation Director, summarized that on or about July 27, 2010, the
Central Kitsap Fire District ( "Fire District') obtained two World Trade Center steel beams from
City Council Reg Mtg Minutes
Wednesday, September 18, 2013
Page 3 of 4
the Port Authority of New York and New Jersey ( "Port Authority') Since that time, the Kitsap
9/11 Memorial Committee has designed, funded, and constructed the Memorial and installed
the beams as part of the Memorial with design approval from the City The City desires to
accept the improvements for the Memorial which includes the beams, the limestone block from
the Pentagon and other improvements Pursuant to the agreement between the Port Authority,
the Fire District, the Port Authority must approve the transfer of the steel beams to the City
Transfer of the beams to the City would provide the City with complete ownership of the
Memorial
Comments from the public were provided by Dave Fergus Kitsap 9111 Memorial Committee
06 56 52 Motion was made by Arends, and seconded by Brockus,
Members of the Council expressed thanks and appreciation to members of the Kitsap 9111
Memorial Committee and VFW Post 239
07 01 01 M /S /C /U (Arends /Brockus) Move to accept the improvements for the Kitsap 9/11
Memorial, approve the Agreement for Transfer of two World Trade Center Steel Beams, and
authorize the Mayor to finalize and execute the Consent to Assignment Agreement with
substantially the same terms and conditions as presented
COUNCIL MEMBER REPORTS
Faye Flemister mentioned a new business opening on Callow Avenue that specializes in
chicken wings called Wings & Things, was honored to attend the Kitsap 9/11 Memorial
Dedication, announced an upcoming volunteer effort to clean up the Gateway area of the City
on Saturday, October 26 at 9 00 AM, looked forward to progress of the James & Lillian Walker
Park, welcomed former Council Member Dianne Robinson, and enjoyed attending a recent
Neighborhood Block Watch Captains Meeting
Adam Brockus looked forward to the next District 3 Community Meeting to be held on
Tuesday, September 24 from 6 30 to 8 00 PM at the Bremerton Senior Center with guest
speaker Public Works & Utilities Director Chal Martin, added that the next District 3 Community
Meeting will be on Tuesday, October 22, and reported that there will be a new mobile phone
application which will allow users to check the number of available spots on the next ferry
Leslie Dauqs thanked the 100+ volunteers who showed up to build a picnic shelter at Bataan
Park on Wednesday, September 11, thanked the women's Kitsap County Filipino community for
making her feel welcome at several recent events, and acknowledged the passing of the 12
victims at the Washington DC Naval Shipyard as well as local homeless advocate Sally
Santana this week
Jim McDonald was pleased to see Dianne Robinson back in Bremerton, and commented that
a policy on electric vehicle chargers may be needed since he observed a vehicle plugged into
an outlet in a tree recently in Manettel
Greg Wheeler will be attending the next Kiwarns Park Stewardship Day on Saturday,
September 28 from 9 00 to 11 00 AM, the KEDA Board Meeting tomorrow, and the PSNS &
IMF Apprentice Graduation Ceremony on Friday
City Council Reg Mtg Minutes
Wednesday, September 18, 2013
Page 4 of 4
With no further business, President Wheeler adjourned the Council Meeting at 7 12 PM
Prepared and Submitted by
APL Ygda
LORI SMITH
Legislative Assistant
Attest
SHANNON CORIN, City Clerk
GREG WHEELER, City Council President
GW SC Is cg
AGENDA BILL co
CITY OF BREMERTON
CITY COUNCIL
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SUBJECT Minutes of Study Session — Study Session Date
September 25, 2013 COUNCIL MEETING Date October 2, 2013
Department City Council
Presenter Greg Wheeler
Council President
Phone (360) 473 -5280
SUMMARY Attached is the summary of the City Council Meeting
ATTACHMENTS Meeting Minutes
FISCAL IMPACTS (Include Budgeted Amount)
STUDY SESSION AGENDA 0 No Presentation ❑ Full Presentation
STUDY SESSION ACTION 0 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 01/25/13
DIGITAL RECORDING
CITY COUNCIL STUDY SESSION MINUTES
Wednesday, September 25, 2013
A Study Session of the City Council of the City of Bremerton was called to order in the Council
Conference Room of the NORM DICKS GOVERNMENT CENTER, 345 6 th Street, Bremerton,
Washington, Wednesday, September 25, 2013, at 5 00 PM, with Council President Greg Wheeler
presiding Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye
Flemister, Adam Brockus, Leslie Daugs, and Jim McDonald Council Member Wendy Priest was
absent Council Assistant Christine Grenier was present to provide staff support
President Wheeler 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 October 2, 2013 Council Meeting Agenda or as indicated
BRIEFINGS
1 Visit Kitsap Peninsula — Patricia Graf -Hoke, Executive Director, Visit Kitsap Peninsula
Information only
2 Bremerton Parks & Recreation Funding Task Force Draft Report — Cary Bozeman, Chair of
Parks & Recreation Funding Task Force Committee Information only
A NO PRESENTATION ITEMS — The following items are budgeted items or have already been
reviewed by the appropriate Council Committee
3 Resolution to approve the Interlocal Agreement to adopt the Association of Washington
Cities (AWC) Health Care Program Consent Agenda
4 Resolution to establish November 6, 2013 as a Hearing Date to vacate portions of the alley
and 4 th Street for the Park Plaza Project Consent Agenda
5 Contract Award to IMCO General Construction, Inc for the Construction of the Warren
Avenue Bridge Water Main Replacement Project Consent Agenda
6 Proposed 2 nd public hearing (on October 2) to approve Letter of Agreement and Lease for
Pendergast Park Soccer Field with West Sound FC Premier Soccer Club Public Hearing
B FULL PRESENTATION ITEMS
7 Ordinance to establish a Fiscal Policy regarding the use of Utility Tax Revenue and Payment
in Lieu of Property Tax (PILOT) General Business
Council recessed from 6 30 to 6 43 PM
8 Resolution to approve Name Change of 7 th Street between Warren and Pacific Avenues to
Dr ML King Way October 8 Public Works Committee
9 Interlocal Agreement with the Kitsap Public Facilities District for funding of the Kitsap
Conference Center Expansion Project October 9 Study Session
C GENERAL COUNCIL BUSINESS
1 Public Works Committee Briefing (9110113 Meeting) — Adam Brockus, Chair
2 Public Safety & Parks Committee Briefing (9/17/13 Meeting) —Leslie Daugs, Chair
3 Finance and Investment Committee Briefing (9124113 Meeting) — Eric Younger, Chair
4 Other General Council Business
City Council Study Session Minutes
Wednesday, September 25, 2013
Page 2 of 2
D ADJOURNMENT OF STUDY SESSION
With no further business, President Wheeler adjourned the Council Study Session at 7 45 PM
Prepared and Submitted by
CHRISTINE GRENIER
Council Assistant
Attest
SHANNON CORIN, City Clerk
GREG WHEELER, City Council President
GW SC Is cg
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
■■ eeeeteeeseeeteeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
SUBJECT Resolution No 3203 to approve the Study Session Date September 25, 2013
Interlocal Agreement adopting the AWC Health COUNCIL MEETING Date October 2, 2013
Care Program Department Finance — Human
Resources
Presenter Charlotte Belmore
Phone 473 -5722
SUMMARY Effective January 1, 2014, the AWC Trust medical, dental (WDS) and vision programs utilized
by the City will transition from fully - insured to self - insured To continue medical, dental (WDS) and vision
benefits with the Trust, employers are required to pass a resolution approving an Interlocal Agreement
authorizing participation in the self - insured programs
ATTACHMENTS Association of Washington Cities Employee Benefit Trust Health Care Program
Interlocal agreement, and Resolution No 3203
FISCAL IMPACTS (Include Budgeted Amount) Sufficient funds are being included in the 2014
budget to cover the cost of Group Health, Washington Dental Service and VSP Vision Coverage
STUDY SESSION AGENDA x❑ No Presentation ❑ Full Presentation
STUDY SESSION ACTION 0 Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION Move to adopt Resolution No 3203 approving the Interlocal agreement
adopting the AWC Health Care Program and authorize the Mayor to finalize and execute the
attached Interlocal Agreement with substantially the same terms and conditions as presented
COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 11/02/12
It's official Self- insurance 1 -1 -14 > Association of Washington Cities Page 1 of 2
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It's official! Self - insurance 1 -1 -14
Effective January 1, 2014, the AWC Trust medical, dental (WDS) and vision programs will transition from
fully insured to self insured, as approved by the State Risk Manager on August 26 In addition to the 0%
rate adjustment for 2014, the decision to go self insured has employer and employee impact Be prepared
to answer questions from council, unions and your employees with the self insurance fact sheet below
Action required!
To continue medical, dental (WDS), and vision benefits through the Trust, employers are required to
approve - by_resolution an Interlocal Agreeme t a
nuthonzing participation in the self insured_ program
r t —
Resolutions must be adopted and returned to the Trust no latehan November 15, 2013
• AWC CEO /AWC Trust Board of Trustees Chair letter to members (pdf)
• Sample resolution (word doc)
• Interlocal Agreement (pdf)
• Self- insurance fact sheet (pdf)
Self - insurance for the Trust?
Planning retreat priority
As one of the highest priorities emerging from the 2011 Long Range Strategic Planning Retreat, the
Trustees dedicated its 2013 meetings to learning about the world of self insurance, hearing in depth
analysis from benefit, legal and actuarial consultants, and weighing the pros and cons
Cost savings
One of the overriding factors in the decision is the potential for cost savings to members Self insurance
allows us to eliminate several taxes mandatory for fully insured plans including a 2% state tax and a 2% -
3% new 2014 federal insurer tax While our retention and stop loss fees were extremely competitive as a
fully insured plan, these fees were also lowered with the aid of a competitive self insurance marketplace
Along with all these cost savings, we'll be able to focus on our own trend line, which has been lower than
carriers' trends for many years
http Hwww awcnet org/ HealthBenefits/ EmployeeBenefitTrustNewsUpdates /tabid/363 /artic 9/12/2013
It's official Self- insurance 1 -1 -14 > Association of Washington Cities Page 2 of 2
Self - insurance
On July 25, Trustees instructed staff and consultants to proceed with a self insurance application to the
State Risk Manager Once approved, the Trust will transition its Regence /Asuns, Group Health, WDS and
VSP plans to self insurance effective January 1, 2014
If approved by the State Risk Manager's Office, the Trust's 2014 rate projections will be more favorable
Self- insurance plans Fully - insured plans
Regence /Asuns Medical 0% LEOFF I Medicare Advantage Plan 8%
Group Health Medical 0% Willamette Dental 0%
WDS Dental 0% Life 8 LTD 0%
VSP Vision 0% EAP 0%
Final rates will be adopted by the Board of Trustees on September 26 Look to our website by end of day
on Friday, September 27 for an updated posting
WellCity rate impact
The WellCity discount is 2% less than the base rate Ongoing WellCity Award recipients - your current rate
will be 2% less than the base rate - which means your rate stays the same For cities earning the 2013
WellCity Award for the first time, you'll get a 2% discount on the 2014 base rate, meaning your rate this
year is actually a 2% savings from your 2013 rate
Member impact
A more detailed fact sheet will be made available to member employers in October so that you can readily
respond to questions
Employee impacts
For now, know that the impact to employees and their family members is minimal to none Employees
have access to the same provider networks Claims will be processed by the same carriers It is possible
that a new ID card will be generated
Employer impacts
Impact to employers is equally minimal Members will still be part of the Trust's large pool, which will now
be self insured The monthly bill will still be generated by NWA and due at the same time as current (by
the 10the of the month) The most notable change for employers will be the council adoption by
resolution of an Interlocal Agreement between the jurisdiction and the AWC Trust More to come on this in
the coming months
Questions
As always, the Trust is committed to communicating with members You can expect a fact sheet next
month, and ongoing communications in upcoming For Your Health a newsletters If you have any
questions regarding the Trust's decision to self insure, the new rate projections, or the upcoming self
insurance application process, feel free to contact an AWC Trust staff member at 1 800 562 8981 or
benefitmfo@awcnet org
http //www awcnet org/ HealthBenefits/ EmployeeBenefitTrustNewsUpdates /tabid/363 /artic 9/12/2013
RESOLUTION NO 3203
A RESOLUTION of the City Council of the City of
Bremerton, Washington, adopting the Association of Washington
Cities Health Care Program
WHEREAS, the Association of Washington Cities Employee Benefit Trust (the
"Trust ") is an entity to which contributions by cities and towns and non -city entities organized
and existing under the Constitution or laws of the State of Washington and who are members of
the Trust ( "Participating Cities and Towns," and "Participating Non -City Entities ") and their
employees can be paid and through which the Board of Trustees of the Trust ( "Trustees ")
provides one or more insured health and welfare benefit plans or programs to Participating Cities
and Towns' and Non -City Entities' employees, their dependents and other beneficiaries
(`Beneficiaries "), on whose behalf the contributions were paid, and
WHEREAS, the Trust qualifies as a voluntary employee beneficiary association
within the meaning of Section 501(c)(9) of the Internal Revenue Code, providing for the
payment of life, sick, accident or other benefits to Beneficiaries, and
WHEREAS, the Trust and Participating Cities and Towns and Non -City Entities
have determined that it is in the best interest of Participating Cities and Towns and Non -City
Entities to jointly self - insure certain health benefit plans and programs for Beneficiaries through
a designated account within the Trust, while at the same time having the Trust continue as the
entity to which other insured health and welfare benefit program contributions are paid and
through which insured health and welfare benefit plans and programs are provided to
Beneficiaries, and
WHEREAS, it appears economically feasible and practical for the parties to do
so, and
WHEREAS, Chapter 48 62 RCW provides that two or more local government
entities may, by Interlocal agreement under chapter 39 34 RCW, jointly self - insure health benefit
plans and programs, and/or jointly hire risk management services for such plans or programs by
any one or more of certain specified methods, and
WHEREAS, the Association of Washington Cities Employee Benefit Trust
Interlocal Agreement (the " Interlocal Agreement ") attached hereto creates anoint self - insured
health and welfare benefit program (the "Health Care Program ") to be administered by the
Trustees for the purposes of providing self - insured health benefits to Beneficiaries, and
WHEREAS, WAC 200 - 110 -030 requires every local government entity
participating in anoint self - insurance health and welfare benefit program to adopt such program
by resolution, and
1
A WC — Health Care Program
WHEREAS, Chapter 48 62 requires Health Care Program assets to be managed
consistent with existing authority over use of municipal funds in RCW 35 39 030 The Trust will
manage Health Care Program reserves in compliance with Chapter 48 62 RCW, RCW
35 39 030, and the Health Care Program Investment Policy, and
WHEREAS, all premium contributions for use in the Health Care Program are
deposited into a designated account within the Trust, the Health Care Program Account (the
"HCP Account'), and the HCP Account represents a pool of funds that is independent of all
other Trust or AWC funds, and
WHERAS, the Trust intends to manage the HCP Account assets in compliance
with federal and state laws and the Interlocal Agreement, and
F
WHEREAS, the City of Bremerton believes it is in the best interest of the Health
Care Program to allow the Trust to manage the HCP Account, NOW THEREFORE
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS
SECTION I That the Interlocal Agreement creating the Health Care Program is
hereby adopted
SECTION 2 That by adopting such Agreement, the City of Bremerton
acknowledges that it shall be subject to assessments as required by the Health Care Program
SECTION3 Severability If anyone or more sections, subsections, or
sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Resolution and the same shall remain in full
force and effect
SECTION 4 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
9 2013
GREG WHEELER, Council President
APPROVED AS TO FORM ATTEST
ROGER A LUBOVICH, City Attorney SHANNON L CORIN, City Clerk
R \Legal \Legal\Resolutions\HR\AWC Health Care Program docx
2
A WC — Health Care Program
ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST
HEALTH CARE PROGRAM
INTERLOCAL AGREEMENT
This Agreement is made and entered into in the State of Washington by and among the
Association of Washington Cites Employee Benefit Trust (the "Trust") and cities and towns,
and non -city entities organized and existing under the Constitution or laws of the State of
Washington and who are members of the Trust ( "Participating Cities and Towns," or
"Participating Non -City Entities''l, all of whom are signatories to this Agreement
RECITALS
WHEREAS, the Trust is an entity to winch contributions by Participating Cities and
Towns and Non -City Entities (defined below) and Participating Employees (defined below) are
paid and through winch the Board of Trustees provides one or more insured health and welfare
benefit plans or programs to Participating Employees, their covered dependents and other
beneficiaries (" Beneficiaries'), on whose behalf the contributions were paid, and
WHEREAS, the Tnist qualifies as a voluntary employee beneficiary association within
the meaning of Section 501(c)(9) of the Internal Revenue Code ("VEBA'), providing for the
payment of life, sick, accident or other benefits to Beneficiaries, and
WHEREAS, the Trust and the Participating Cities and Towns have determined that it is
in the best interest of Participating Cities and Towns to jointly self - insure certain health benefit
plans and programs for Beneficiaries through a designated account within the Trust, while at the
same time having the Trust continue as the entity to winch health and welfare benefit plan or
program contributions are paid and through winch insured health and welfare benefit plans and
programs are provided to Beneficiaries, and
WHEREAS, it appears economically feasible and practical for the parties to this
Agreement (defined below) to do so; and
WHEREAS, Chapter 48 62 RCW provides that two or more local government entities
may, by Interlocal agreement under Chapter 39 34 RCW, ,jointly self - insure health benefit plans
and programs, and/or jointly lure risk management services for such plans or programs by any
one or more of certain specified methods, and
WHEREAS, each local government entity that is a signatory hereto, as required by
WAC 200 - 110 -030, acts upon the authority of a resolution adopting tlus Agreement and the
Health Care Program (defined below) created herein,
NOW, THEREFORE, for and in consideration of all of the mutual benefits, covenants
and agreements contained herein, the parties hereto agree as follows
74234347 6 0053138.00001 1
ARTICLE 1
DEFINITIONS
The following are definitions of tends used in the Agreement Unless indicated
otherwise, other terms are defined where they are first used Defined terms are capitalized when
used in the defined context.
1 1 Agreement means this Interlocal Agreement entered into under the authority of Chapter
39 34 RCW and as required by RCW 48 62 031(2) between the Trust and Participating
Employers
12 Association of Washington Cities or AWC means the Association of Washington
Cities, a not - for -profit membership association established pursuant to the laws of the
state of Waslungton for the purpose of providing various services to and on behalf of its
member cities
13 Association of Washington Cities Employee Benefit Trust or the Trust means the trust
and all property and money held by such entity, including all contract rights and records,
established for the sole purpose of providing life, sick accident or other health and
welfare benefits to Participating Employees, their covered dependents and other
beneficiaries, and which is approved by the Internal Revenue Service as a VEBA
14 Employee Benefits Advisory Committee or EBAC means the committee defined in
Article V of the Trust Agreement that may be delegated responsibility by the Board of
Trustees, including but not linuted to overseeing the operations of the Health Care
Program, analyzing and developing annual premium levels and benefit coverage changes
for recommendation to the Board of Trustees and performing other duties necessary to
ensure that the needs of Participating Employers are met and the long -term financial
health of the Health Care Program is maintained
15 Health Care Program means the joint self- insurance program offering self - insured
health benefit options through the HCP Account
16 HCP Account means a designated account within the Trust and created by this
Agreement, the Trust Agreement and Trust Health Care Program policies all under the
authority of Chapter 48 62 RCW to provide self -insured health benefits to Participating
Employees, their covered dependents and other beneficiaries and further described in
Article 6
17 Non -City Entity means any public agency, public corporation, intergovernmental agency
or political subdivision, within the state of Washington that meets the requirements of
Article 1X, Section 1(c)(u) and (m) of the Trust Agreement for participation in the Health
Care Program
18 Participating City means any city or town within the state of Washington that meets the
requirements of Article IX, Section 1(a) or Section 1(b) of the Trust Agreement.
74234347 6 0053139-00001 2
19 Participating Employee means any individual employed by a Participating Employer
and for whom the Participating Employer makes contributions to the Trust, and any
individual who may have been so employed but is subsequently laid off, terminated, or
retired
110 Participating Employer means a Participating City or Non -City Entity that is also a
party to this Agreement.
1 11 Resolution means the resolution adopted by each Participating City or Non -City Entity
that authorizes the Health Care Program
1 12 State Risk Manager or Risk Manager means the risk manager of the Risk Management
Division within the Department of Enterprise Services
1 13 Stop Loss Insurance or Reinsurance means a promise by an insurance company that it
will cover losses of the Health Care Program over and above an agreed -upon individual
or aggregated amount, which definition shall be modified by any changes to the
definition of stop loss insurance in WAC 200 - 110-020
114 Third -Party Administrator means the independent association, agency, entity or
enterprise which, through a contractual agreement, provides one or more of the following
ongomg services to the Health Care Program pool management or administration
services, claims administration services, risk management services, or services for the
design, implementation, or termination of an individual or joint self - insurance program
1 15 Trust Agreement means the Trust Agreement Governing the Trust amended and restated
July 1, 2013, and any subsequent amendments thereto
1 16 Trustees or Board of Trustees means the following individuals and their successors,
who together, govern the Trust and the Health Care Program
1 161 the AWC President and the AWC Vice President,
1 162 the EBAC Chair and the EBAC Vice Chair, and
1 163 an individual elected pursuant to the procedures in Article III, Section 5 of the
Trust Agreement to serve as the trustee from one of the following regions
(a) North East Region (known as the "North East Region Trustee'),
(b) North West Region (known as the "North West Region Trustee "),
(c) South East Region (known as the "South East Region Trustee'), and
(d) South West Region (known as the "South West Region Trustee')
Individuals from Non -City Entities are not eligible to serve as Trustees
74234347 6 0053138 -00001 3
ARTICLE 2
PURPOSE
This Agreement is entered into for the purpose of authorizing the Health Care Program
created by the Trust to provide self - insured health benefits to Participating Employees, their
covered dependents and other beneficiaries The Health Care Program shall comply with the
statutory provisions found in Chapters 48 62 and 39 34 RCW and the regulatory requirements
contained in WAC 200 -110 applicable to joint self - insurance programs
ARTICLE 3
PARTIES
Each party to this Agreement certifies that it intends to participate in the Health Care
Program Participating Employers are signatories of this Agreement to become effective on a
date to be mutually determined (the "Effective Date) and with such other Participating Cities
and Non -City Entities as may later be added to and become signatories to this Agreement
ARTICLE 4
DURATION OF AGREEMENT
41 This Agreement shall become effective on the Effective Date
42 This Agreement shall have perpetual duration unless terminated as hereinafter provided
ARTICLE 5
MEMBERSHIP COMPOSITION
The Health Care Program shall be open to Participating Cities and Non -City Entities
Participation in the Health Care Program is voluntary and not a requirement of AWC
membership The Board of Trustees shall provide for the reasonable admission of new
Participating Cities and Non -City Entities
ARTICLE 6
HCP ACCOUNT
61 All premium contributions by Participating Employers, Non -City Entities and
Participating Employees for use in the Health Care Program are deposited into the HCP
Account
62 The HCP Account represents a pool of funds that is independent of all other Trust or
AWC funds and independent of all other Participating Employer and Non-City Entity
funds The funds deposited into the HCP Account are held, managed and expended only
for the Health Care Program and reasonable expenses, consistent with applicable state
74234347 6 0053138-00001 4
and federal statutes and rules governing joint self - insurance programs and self - insurance
programs generally
63 The HCP Account is subject to audit by the State Auditor's Office
ARTICLE 7
TRUSTEE POWERS RELATED TO HEALTH CARE PROGRAM
The Board of Trustees is provided with the powers and functions established under
RCW 48 62 031 to accomplish the following
71 Promote the economical and efficient means by which health benefits coverage is made
available to Participating Employers and Non -City Entities and provided to Participating
Employees, their covered dependents and other beneficiaries,
72 Protect the financial integrity of the Health Care Program through purchase of Stop Loss
Insurance or Reinsurance in such form and amount as needed,
73 Contract for or otherwise provide risk management and loss control services,
74 Contract for or otherwise provide legal counsel for the defense of claims and other legal
services,
75 Consult with the state insurance comnussioner and the State Risk Manager,
76 Obligate the Participating Employers and Non -City Entities to pledge revenues or
contribute money to secure the obligations or pay the expenses of the Health Care
Program, including the establishment of a reserve or fund for coverage, and
77 Exercise all other powers and perform all other functions reasonably necessary to carry
out the purposes of the Health Care Program, Chapter 48 62 RCW and Chapter 200 -110
WAC
ARTICLE 8
ORGANIZATION OF HEALTH CARE PROGRAM
81 The operations of the Health Care Program are managed by the Board of Trustees or its
delegates The Trustees or any delegates review and analyze Health Care Program -
related matters and make operational decisions regarding premium contributions,
reserves, plan options and benefits in compliance with Chapter 48 62 RCW
82 The Board of Trustees has decision authority consistent with the Trust Agreement, Health
Care Program policies, Chapter 48 62 RCW and Chapter 200 -110 WAC
74234347 6 0053138.00001 5
ARTICLE 9
RESPONSIBILITIES OF THE TRUSTEES
91 The Board of Trustees shall discharge its responsibilities under this Agreement as
follows
91 1 Provide for the efficient management and operation of the Health Care Program,
912 Provide for health benefit coverage options for Participating Employees, their
covered dependents and other beneficiaries,
913 Determine the level of Stop Loss Insurance or Reinsurance coverage for claims
expenses above the amounts deemed appropriate for self - insurance,
914 Ensure that the Health Care Program meets required state and federal statutes and
rules,
915 Contract with vendors required to meet the responsibilities established by the
Trust Agreement, Health Care Program policies, and applicable state and federal
statutes and rules,
916 Maintain the balance between meeting the Health Care Program needs of
Participating Employers and the long -term financial integrity of the Health Care
Program,
917 Prepare an annual financial report on the operations of the Health Care Program,
and
918 Provide for other services deemed appropriate by the Board of Trustees to meet
the purposes of this Agreement
92 The Board of Trustees may delegate the responsibilities described in this Article 9 to the
EBAC or other delegates at its complete discretion
ARTICLE 10
RESPONSIBILITIES OF THE PARTICIPATING EMPLOYERS
In order to participate in the Health Care Program, Participating Employers shall-
101 Be a Participating City or Non -City Entity in good standing and comply with the
requirements of admission or qualification as established by the Board of Trustees,
102 Adopt tins Agreement by Resolution, agreeing to its terms and provisions,
103 Submit the Resolution and Agreement to the Trust,
74234347 6 0053138 -00001 6
104 Read the terms, conditions and representations set forth in the application agreement
related to participation in the Health Care Program,
105 Designate an employee of the Participating Employer to be a contact person for all
matters relating to the Participating Employer's participation in the Health Care Program,
106 Pay premiums for the Health Care Program to the Third -Party Administrator no later than
the tenth day of the month in which the premium is due,
107 By formal action of the legislative body of the Participating Employer, approve pohcies
and procedures necessary to secure protected health information ("PHI ") in accordance
with Chapter 70 02 RCW and the Health Insurance Portability and Accountability Act
CUIPAA') privacy and security rules, codified at 45 C F R Parts 160 -164,
108 Provide the Health Care Program with such information or assistance as is necessary for
the Health Care Program to meet its responsibilities under this Agreement, and
109 Cooperate with and assist the Health Care Program and any insurer of Stop Loss
Insurance or Reinsurance, in all matters relating to the administration and operation of the
Health Care Program and all matters relating to this Agreement
1010 Comply with all bylaws, rules, regulations and policies adopted by the Board of Trustees
relatmg to the Health Care Program
ARTICLE 11
RESERVE FUND INVESTMENT
All reserve fund investments from the HCP Account shall be made in a manner that is
consistent with RCW 48 62111, Chapter 39 59 RCW, WAC 200 - 110 -090 and the Health Care
Program Investment Policy
ARTICLE 12
FINANCIAL RECORDS
121 The Board of Trustees shall develop estimated revenue and expenditures to establish a
budget for each fiscal year covering January 1 through December 31 annually Actual
Health Care Program revenues and expenditures shall be monitored monthly by the
Board of Trustees and reported at its quarterly meetings
122 The accounting records of the Health Care Program are maintained in accordance with
methods prescribed by the State Auditor's office under the authority of Chapter 43 09
RCW The Health Care Program also follows applicable accounting standards
established by the Governmental Accounting Standards Board ( "GASB ") Year -end
financial reporting is done on an accrual basis and submitted to the Office of the State
Auditor as required by Chapter 200 -110 WAC Once reviewed and approved by the
74234347 6 OOS3138 -00001 7
Office of the State Auditor the year -end financial report is transmitted to the Office of the
State Risk Manager
123 Financial records of the Health Care Program shall be subject to audit by the Office of the
State Auditor Year -end financial reports and audit results shall be made available to
interested parties The Health Care Program shall provide financial information as
required by state statute and rule to the Office of the State Risk Manager
ARTICLE 13
PARTICIPATING EMPLOYER TERMINATION AND WITHDRAWAL
131 A Participating Employer must remain in good standing with the Trust and adhere to the
requirements of this Agreement. In the event that a Participating Employer fails to be a
Participating City or Non -City Entity in good standing, participation in the Health Care
Program shall automatically terminate without notice as shall all health and welfare
benefits provided through the Health Care Program
132 The Board of Trustees may take action to terminate membership or deny membership in
the Health Care Program where it determines that such termination or denial is in the best
interest of the Health Care Program
133 When a Participating Employer's eligibility in the Health Care Program is affected due to
merger or annexation, the affected Participating Employer may petition the Board of
Trustees to remain in the Health Care Program
134 A Participating Employer may only withdraw its participation in the Health Care
Program at the end of the calendar year and must provide written notice to the Trust at
least thirty-one (3 1) days in advance of the end of the calendar year (December 31 st)
135 In the event of withdrawal or non - renewal, the Health Care Program will cover any of the
Participating Employer's remaining outstanding Health Care Program claims expenses
incurred prior to the Participating Employer's withdrawal from or non - renewal in the
Health Care Program
136 No Participating Employer, because of withdrawal or any other reason, has any right or
interest in the HCP Account because of its nature as a rate stabilization fund In the event
any Participating Employer withdraws from the Health Care Program, its Participating
Employees, their covered dependents and other beneficiaries and any Consolidated
Ommbus Budget Reconciliation Act of 1985 as amended (COBRA) participants and
contract personnel and dependents approved by the Board of Trustees, shall forfeit all
right and interest to the HCP Account
74234347 6 0053138 -00001 8
ARTICLE 14
TERMINATION OF HEALTH CARE PROGRAM
141 In the event the Health Care Program is terminated, the Board of Trustees shall distribute
the remaining funds in the HCP Account to the Trust or any successor association
authorized by Chapter 39 34 RCW for like purposes for use in any program with sinular
purposes
142 Upon termination, this Agreement and the HCP Account shall continue for the purpose of
paying remaining outstanding claims and expenses and fulfilling all other functions
necessary to complete the business of the Health Care Program
ARTICLE 15
MEETINGS, NOTICES AND COMMUNICATIONS
151 The Board of Trustees and the EBAC, if any responsibilities for Trust management have
been delegated thereto, shall provide notice of their regular and special meetings and hold
their meetings in accordance with Chapter 42 30, RCW Open Public Meetings Act.
152 Communications with Participating Employers may occur using mail, email or posting on
the Health Care Program website The website shall be partitioned to provide
information for the general public and information specific to Participating Employers
and their employees
153 Communications may come directly from the Health Care Program, through the
Thud -Party Admimstrator or through another vendor on behalf of the Health Care
Program
ARTICLE 16
AMENDMENTS TO INTERLOCAL AGREEMENT
161 The Board of Trustees shall review and analyze any proposed amendment to this
Agreement An amendment may be proposed for review by any party to this Agreement
16.2 The Board of Trustees upon its discretion may take action by resolution on any
amendment at any regular meeting of the Board of Trustees
ARTICLE 17
PROHIBITION ON ASSIGNMENT
171 No Participating Employer may assign any right or claim of interest it may have under
this Agreement
74234347 6 0053138-00001 9
17 2 No creditor, assignee or third -party beneficiary of any employer shall have the right,
claim or title to any party, share, interest, prenuum or asset of the Trust, HCP Account or
the Health Care Program
ARTICLE 18
HEALTH CLAIM DISPUTES AND APPEALS
In the event that a dispute arises over a health claim, the procedures, adjudication
requirements and administrative remedies shall be found in the Health Care Program's plan
document applicable to the Health Care Program covering the claimant
ARTICLE 19
PLAN ADMINISTRATION DISPUTES AND APPEALS
191 In the event that a dispute arises between a Participating Employer and the Health Care
Program, the Participating Employer shall document the circumstances causing the
dispute and submit a written request for review of the disputed circumstances to the
Board of Trustees Upon review of such information, the Board of Trustees shall attempt
to resolve the dispute
192 If the Board of Trustees' resolution to the dispute is deemed unsatisfactory, then
alternative dispute resolution through mediation or binding arbitration may be necessary
ARTICLE 20
ENFORCEMENT OF TERMS OF AGREEMENT
201 The Board of Trustees may enforce the terms of this Agreement
202 In the event legal action is initiated to enforce any term or provision of this
Agreement against any present or previous Participating Employer, the prevailing party
shall receive such reimbursement of costs as the court deems reasonable for attorneys'
fees and costs related to the relevant legal action
ARTICLE 21
DEFAULT
211 If any Participating Employer fails to perform any term or condition of this Agreement
and such failure continues for a period of sixty (60) days after the Board of Trustees has
given the Participating Employer written notice describing such failure, the Participating
Employer shall be considered in default.
212 Upon default, the Board of Trustees may immediately cancel the Participating
Employer's participation in the Health Care Program without additional notice or
exercise some other remedy otherwise provided by law
74234347 6 0053138 -00001 10
213 The rights and remedies of the Board of Trustees are cumulative in nature and pursuit of
any particular remedy shall not be deemed an election of remedies or a waiver of any
other remedies available hereunder or otherwise available by law
ARTICLE 22
NO WAIVERS
No waiver or forbearance of a breach of any covenant, term, or condition of this
Agreement shall be construed to be a waiver or forbearance of any other or subsequent breach of
the same or of any other covenant, tern or condition, and the acceptance of any performance
hereunder, or the payment of any sum of money after the same has become due or at a time when
any other default exists hereunder, shall not constitute a waiver or right to demand payment of all
sums owing or a waiver of any other default then or thereafter existing
ARTICLE 23
CONTRACT MANAGEMENT
The Health Care Program shall designate a person to whom the State Risk Manager shall
forward legal process served upon the Risk Manager, The AWC Chief Executive Officer
(designee or successor) The Health Care Program Director shall be responsible for and
shall be the c ontact p e r s o n for all commumcahons regarding the performance of this
Agreement
ARTICLE 24
SEVERABILITY
If any provision of this Agreement or any provision of any document incorporated by
reference shall be held invalid, such invalidity shall not affect the other provisions of this
Agreement which can be given effect without the invalid provision, if such remainder conforms
to the requirements of applicable law and the fundamental purpose of this Agreement, and to this
end the provisions of this Agreement are declared to be severable
ARTICLE 25
COUNTERPART COPIES
This Agreement may be signed in counterpart or duplicate copies and any signed
counterpart or duplicate copy shall be equivalent to a signed original for all purposes
74234347 6 0053138-00001 1 1
ARTICLE 26
HEADINGS
The Article and Section headings in this Agreement are inserted for convenience only
and are not intended to be used in the interpretation of the contents of the Articles and Sections
they introduce
ARTICLE 27
AGREEMENT COMPLETE
This Agreement and the documents referenced herein contains all the terms and
conditions agreed to by the parties No other understandings, oral or otherwise, regarding the
subject matter of this Agreement shall be deemed to exist or to bind the parties hereto
[Signature page follows]
74234347 6 0053138 -00001 12
IN WITNESS WHEREOF, the undersigned parties have executed tins Agreement
Association of Washington Cities Parthcinatine Employer
Employee Benefit Trust
r
Signature Signature
Name Michael A. McCarty Name (print)
Title Chief Executive Officer Tide
Date 3 to / 3 Date
Effective Date January 1, 2014
74234347 6 0053138.00001 13
AGENDA BILL (0 C W
CITY OF BREMERTON
CITY COUNCIL
■0 0MEE0E0N0a000EE0NNa00EE0a000M00000000M0000M00000NNN0aff000Neff00000ffa0EaN00EE0000
SUBJECT Resolution No 3204 to Study Session Date September 25, 2013
Establish November 6, 2013 as a Hearing COUNCIL MEETING Date October 2, 2013
Date to vacate portions of the alley and 4 th Department Public Works & Utilities
Street for the Park Plaza Project Presenter Chal Martin
Phone 360 473 5920
SUMMARY The City of Bremerton initiated the partial vacation in both the alley and 4 th Street to
facilitate the Park Plaza Project development, which consists of a movie theatre, parking garage and
apartment pad The alley vacation is for the south four feet adjacent to the City property bounded by
Park and Pacific Avenues, and Burwell and 4 th Streets The 4 th Street vacation is for the south 12
feet adjacent to the City property starting at Park Avenue Included with these vacations is the
dedication of Park Avenue between Burwell and 4 th Streets
ATTACHMENTS 1 Resolution No 3204, 2 Engineering Staff Report, 3 Exhibit Drawing
FISCAL IMPACTS (Include Budgeted Amount) None
STUDY SESSION AGENDA 0 No Presentation ❑ Full Presentation
STUDY SESSION ACTION ❑x Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION
Move to pass Resolution No 3204 to establish November 6, 2013 as a Hearing Date to vacate right
of way for the Park Plaza Project and dedicate Park Avenue between Burwell and 4 th Streets
COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/25/13
1
RESOLUTION NO. 3204
A RESOLUTION of the City Council of the City of
Bremerton, Washington, establishing a hearing date for the
proposed vacation of right of way for the Park Plaza Project, and
dedication of Park Avenue in downtown Bremerton
WHEREAS, the City initiated the vacation in accordance with Bremerton
Municipal Code (BMC) 1120 080 as part of the Park Plaza Project, and
WHEREAS, that portion of Park Avenue between Burwell and 4` Street was
never properly dedicated as right of way with the transfer of the property to the City in 1967,
NOW THEREFORE
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS
SECTION 1 A public hearing will be held on November 6, 2013, at 5 30 p in
or later in the City Council Chambers at the Norm Dicks Government Center, First Floor, 345
Sixth Street, Bremerton, Washington, to take public comment or consider written objections to
the vacation and dedication
SECTION 2 Severabilyy 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 3 Effective Date This Resolution shall take effect and be in force
immediately upon its passage
PASSED by the City Council of the City of Bremerton, Washington this day
of , 2013
GREG WHEELER, Council President
APPROVED AS TO FORM ATTEST
ROGER A LUBOVICH, City Attorney SHANNON CORIN, City Clerk
Vacation of Right of Way for Park Plaza Project — Resolution
STREET VACATION AND DEDICATION REQUEST
PARK PLAZA DEVELOPMENT
ENGINEERING STAFF REPORT
CITY COUNCIL HEARING DATE October 2, 2013
PREPARED BY Gunnar Fridriksson
SUMMARY
A Applicant City of Bremerton
3456 th Street, Suite 600
Bremerton, WA 98337
Location 1 The South 4 feet of the 14 foot alley, lying in Block 14 of the Plat of the
Town of Bremerton, from 96 feet to 450 feet from the east margin of Park
Avenue Bounded by Burwell /4 Streets and Park/Pacific Avenues
2 The South 12 feet of 4 th Street, lying adjacent to Block 14 of the Plat of
the Town of Bremerton, from 20 feet east of the intersection to Park
Avenue to the east line of Lot 48 of said Plat
3 Park Avenue from Burwell Street to 4 th Street (Dedication)
BACKGROUND
The City of Bremerton initiated the Park Plaza project which is a redevelopment of the
existing City parking lot and property remnants from the SR 304 Pedestrian
Improvements Project (Bremerton Tunnel)
The westerly 120 feet of the alley, Park Avenue between Burwell and 4 and the
easterly 120 feet of the alley in Block 19 were all vacated by the City in 1918 and 1923
for the United States Navy to construct the Craven Center The Navy conveyed the
majority of this property, including the vacated alleys and Park Avenue, back to the City
in 1967 with the demolition of the Center The City rebuilt Park Avenue through from
Burwell to 4 th and constructed a surface parking lot on the remainder of the properties
on both sides of the new street Neither Park Avenue or the existing access to the alley
from 4 th Street were ever properly dedicated as right of way after this conveyance
With the construction of the project, portions of the structure project into the right of way
for 4 th Street and the alley These portions of the right of way need to be vacated so
that the improvements are on private property, along with properly dedicating Park
Avenue between Burwell and 4 th Street as right of way
September 2013
ROW Corrections with Park Plaza Development
Page 1 of 5
RIGHT -OF -WAY CONDITIONS EXISTING ROADWAY NEW ROADWAY
• Functional Classification Alley /Street Alley /Street
• R -O -W Width 14 feet/60 feet 10 feet/48 feet
• R -O -W Areas NIA N/A
• Pavement Width 14 feet/38 feet 10 feet/38 feet
• Surface Type Concrete Asphalt/Concrete
• Curb and Gutter Yes Yes
• Sidewalks Yes Yes
HEARING CONSIDERATIONS
BMC 1120 120 sets forth issues that the City Council needs to determine at the
conclusion of the Vacation Hearing These issues and the staff position are
1 Whether the street, alley or portion thereof is no longer required for public
use and vacation of the described portion will better serve the public good
Staff Position
Vacation of both the alley and 4 th Street allowed development of the site for the
Park Plaza project which is in the best interest of the City
2 Whether the vacation is consistent with the City Comprehensive Plan
Staff Position
The proposed vacation does not conflict with the Comprehensive Plan
3 Whether continued use of the proposed vacation as a public way is not of
such public benefit as to justify the costs of maintenance
Staff Position
Vacating this portion of right of way will reduce the City's maintenance
responsibility in these areas
4. Whether substitution of a new and different thoroughfare would be more
useful to the public
Staff Position
No other thoroughfare would improve circulation in this area The existing alley
is a dead -end and 4 th Street will continue to support two -way traffic
5 Whether conditions may so change in the future as to provide a greater
public use or need than presently exists
Staff Position
There is no anticipated future public transportation needs The alley, Park
I
Avenue and 4 th Street are all classified as local streets
September 2013
ROW Corrections with Park Plaza Development
i Page 2 of 5
I
i
6 Whether objections to the proposed vacation are made by owners of
private property abutting the same
Staff Position
The City of Bremerton is the sole adjacent property owner
SHORELINE ACCESS
This portion of right -of -way does not provide shoreline access
UTILITIES
All private utility companies have been contacted No private or public utilities currently
exist in the areas to be vacated, so that there are no easement reservations
SUFFICIENCY OF SIGNATURES
Not Applicable - The City initiated the vacation
COMPENSATION
Not Applicable - The City initiated the vacation
STAFF RECOMMENDATION
City Attorney, Police, Fire, Engineering and Community Development staff notes no
objections to the proposal Staff recommends that this Street Vacation be approved as
requested
September 2013
ROW Corrections with Park Plaza Development
Page 3 of 5
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Looking westerly from east half of proposed alley vacation Note protrusion of parking garage,
apartment slab, and movie theatre into alley
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Close up of 10 foot alley at approximately mid -point
September 2013
ROW Corrections with Park Plaza Development
Page 4 of 5
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Looking easterly through Park/4 th intersection Note future coffee kiosk, movie theater ticket box
office and staircase in ROW
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Looking southerly at Park Avenue Improvements from 4 /Park Intersection Centerline
monument for Park Avenue is towards bottom of picture
September 2013
ROW Corrections with Park Plaza Development
Page 5 of 5
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PROPOSED ALLEY VACATION
PORTION OF
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CITY OF BREMERTON
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SUBJECT Award Contract to IMCO Study Session Date September 25, 2013
General Construction, Inc for the Warren COUNCIL MEETING Date October 2, 2013
Avenue Bridge Water Main Replacement Department PW &U Engineering
Project Presenter Tom Knuckey
Phone 473 -2376
SUMMARY The Warren Avenue bridge water main is in poor condition with missing structural
connections and continuously leaking points and at the end of its useful life Concerns regarding
failure of the main make this project a priority
Sealed bids for construction of the project titled "Warren Avenue Bridge Water Main Replacement"
were opened on September 23, 2013 The engineer's estimate for the project including sales tax is
$1,500,000 Five (5) bids were received for this project IMCO General Construction, Inc was the
lowest responsive, responsible bidder with a bid of $1,455,240 00 (including sales tax)
ATTACHMENTS 1 Council Summary, 2 Bid Tabulation, 3 Agreement
FISCAL IMPACTS (Include Budgeted Amount) This contract is fully funded and is included in the
2013 Water fund Budget Cost for construction was estimated to be $1,500,000 including sales tax
Estimated expenditure for 2013 is $750,000 and remaining costs will be incurred in 2014
STUDY SESSION AGENDA 0 No Presentation ❑ Full Presentation
STUDY SESSION ACTION 0 Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION
Move to approve the bid for Warren Avenue Bridge Water Main Replacement Project from IMCO
General Construction, Inc in the amount of $1,455,240 00 (which includes sales tax) and authorize
the Mayor to finalize and execute the agreement with substantially the same terms and conditions as
presented upon receiving all necessary environmental permits
COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/25/13
COUNCIL SUMMARY
Warren Avenue Bridge Water Main Replacement Project
Background
The Warren Avenue Bridge water main is approximately 60 years old and is at the end of its useful life A
water system earthquake vulnerability assessment, completed in 1997, identified the bridge water main
crossings as highly probable points of failure in the City's water system during a large seismic event The
Warren Avenue bridge water main (identified as a moderate -high risk in the assessment) is in poor
condition with missing structural connections and continuously leaking joints Concerns regarding failure
of the main make this project a priority
Contract Summary
Sealed bids for demolition and replacement of the 20 -inch steel water main of Warren Avenue Bridge
were opened on September 23, 2013 This work is anticipated to start in early November and will
likely be completed in March Five 5 bids were received for this project IMCO General
Construction, Inc was the lowest responsive, responsible bidder with a bid of $1,455,240 00
(including sales tax)
Fiscal Summary
This contract is fully funded and is included in the 2013 Water Fund budget Cost for construction of
this contract was estimated to be $1,500,000 Estimated expenditure for 2013 is $750,000 and
remaining costs will be incurred in 2014
Warren Avenue Bridge Water Main Replacement Project Page I of I
Council Summary
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CITY OF BREMERTON
BID TABULATION
BID TITLE Warren Avenue Bridge Water Main Replacement OPENED BY wa
DATE OPENED TIME OPENED RECORDED BY
9/23/13 1 0opm ,
NAME OF BIDDER BOND BASE BID SALES TAX TOTAL
A
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APPARENT LOW BIDDER SUMMARY TOTAL BID TS
SECOND LOW BIDDER
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THIRD LOW BIDDER
Zen 's
ENGI ER ESTIMATE (INC SALES TAX) $ $1 5 million ind sales tax
AGREEMENT
SECTION 005213
THIS AGREEMENT is dated the day of In the year 2013
by and between City of Bremerton (hereinafter called OWNER) and
(hereinafter called CONTRACTOR)
OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as
follows
ARTICLE 1 WORK
CONTRACTOR shall complete the WORK as specified or Indicated in the OWNER's Contract Documents
entitled Warren Avenue Bridge Water Main Replacement
ARTICLE 2 CONTRACT TIMES
Substantial Completion for the WORK must be achieved not later than 156 calendar days from the date of
Notice to Proceed Final Completion and Acceptance of the Work must be achieved not later than 30
calendar days after Substantial Completion
ARTICLE 3 LIQUIDATED DAMAGES
OWNER and the CONTRACTOR recognize that time is of the essence of this Agreement and that the
OWNER will suffer financial loss If the WORK is not completed within the time specified In Article 2 herein,
plus any extensions thereof allowed In accordance with Article 12 of the General Conditions and
Supplementary Conditions They also recognize the delays, expense, and difficulties Involved in proving in
a legal proceeding the actual loss suffered by the OWNER if the WORK Is not completed on time
Accordingly, instead of requiring any such proof, the OWNER and the CONTRACTOR agree that as
liquidated damages for delay (but not as a penalty) the CONTRACTOR shall pay the OWNER $1000 for
each day that expires after the time specified in Article 2
ARTICLE 4 CONTRACT PRICE
OWNER shall pay CONTRACTOR for completion of the WORK In accordance with the Contract
Documents in current funds the amount set forth In the Bid Schedule(s)
(Contractor Initials)
AGREEMENT
WARREN AVE BRIDGE WATER MAIN REPLACEMENT 00 52 13 -1
AUGUST 2013
ARTICLE 5 PAYMENT PROCEDURES
CONTRACTOR shall submit Applications for Payment in accordance with Article 14 of the General
Conditions Applications for Payment will be processed by ENGINEER as provided in the General
Conditions
ARTICLE 6 CONTRACT DOCUMENTS
The Contract Documents which comprise the entire agreement between OWNER and CONTRACTOR
concerning the WORK consist of this Agreement (Section 00 52 13) and the following attachments to this
Agreement
• Notice Inviting Bids (Section 00 01 16)
• Instructions to Bidders (Section 00 21 13)
• Bid Forms including the Bid, Bid Schedule(s), Information Required of Bidder, Bid Bond, and all
required certificates and affidavits (Section 00 41 00)
• Performance Bond (Section 00 61 13)
• Payment Bond (Section 00 61 16)
• General Conditions (Section 00 72 13)
• Supplementary Conditions (Section 00 73 13)
• Technical Specifications as listed in the Table of Contents, Including appendices
• Drawings as listed in the List of Drawings
• Addenda numbers to , inclusive
• Change Orders which may be delivered or Issued after Effective Date of the Agreement and are not
attached hereto
There are no Contract Documents other than those listed in this Article 6 The Contract Documents may
only be amended by Change Order as provided in Paragraph 3 04 of the General Conditions
ARTICLE 7 WAIVER OF IMMUNITY
The CONTRACTOR and OWNER acknowledge and agree that they have negotiated the following In
accordance with the requirements of RCW 4 24 115 and the CONTRACTOR specifically waives his
immunity under Industrial insurance under Title 51 RCW The CONTRACTOR and OWNER
acknowledge and agree to the requirements for indemnification in Section 00 73 13 SC -6 20 The
provisions of this article shall survive the termination or expiration of this agreement
(Contractor Initials)
AGREEMENT
WARREN AVE BRIDGE WATER MAIN REPLACEMENT 00 52 13 2
AUGUST 2013
ARTICLE 8 SUSPENSION OF WORK AND TERMINATION
The Contractor agrees to the right of the OWNER to suspend work or terminate this agreement as
Indicated In Article 15 of Section 00 72 13 (Standard General Conditions) and Section 00 73 13
(Supplementary Conditions)
ARTICLE 9 ASSIGNMENT
No assignment by a party hereto of any rights under or Interests in the Contract Documents will be binding
on another party hereto without the written consent of the party sought to be bound, and specifically but
without limitation monies that may become due and monies that are due may not be assigned without such
consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically
stated to the contrary In any written consent to an assignment, no assignment will release or discharge the
assignor from any duty or responsibility under the Contract Documents The OWNER, in Its sole
discretion, may refuse to allow the CONTRACTOR to assign any or all of Its duties, rights and /or
responsibilities under the Agreement, except with regards to an assignment of funds for security purposes
In the case of an assignment for security purposes the OWNER may condition its approval to the extent it
deems necessary to assure that there will be adequate funds to complete the WORK and to pay a
subcontractors and suppliers
OWNER and CONTRACTOR each binds itself, Its partners, successors, assigns and legal representatives
to the other party hereto, its partners, successors, assigns and legal representatives in respect of all
covenants, agreements and obligations contained In the Contract Documents
IN WITNESS WHEREOF, OWNER and CONTRACTOR have caused this Agreement to be executed the
day and year first above written
OWNER City of Bremerton CONTRACTOR
By By
[CORPORATE SEAL]
Attest Attest
Address for giving notices Address for giving notices
License No
Approved as to Form
Agent for service of process
(Signature)
(Title)
AGREEMENT
WARREN AVE BRIDGE WATER MAIN REPLACEMENT 00 52 13 3
AUGUST 2013
AGENDA BILL "?A
CITY OF BREMERTON
CITY COUNCIL
■■ eeeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
SUBJECT Public Hearings to approve the Study Session Date 8/28/13 & 9/25/13
Letter of Agreement and Lease for COUNCIL MEETING Date 9/18/13 & 10/2/13
Pendergast Park Soccer Field with Department Parks and Rec
West Sound FC Premier Soccer Club Presenter Wyn Birkenthal
Phone (360) 473 -5752
SUMMARY Pendergast Soccer Fields have been an underused asset since they were constructed
in the 1990's West Sound FC has agreed to make artificial turf improvements to the 2 fields in return
for a lease allowing West Sound to collect revenue from field scheduling once the turf is installed
Additionally, the city would receive $13,537 00 per year in compensation and maintenance fees for
the duration of the agreement The payment amount will be adjusted for inflation Public use of the
fields is guaranteed under section 2 1 of the lease
ATTACHMENTS Letter of Agreement for lease, Pendergast Soccer Field Lease, Exhibit A -Legal
Description and Map, Exhibit B- Leased Area and Parking, Exhibit C -Lease and Maintenance Fee
Calculation Worksheet
FISCAL IMPACTS (Include Budgeted Amount) The city will be relieved of soccer field maintenance
responsibility and receive $13,537 00 annually in compensation and maintenance fees
STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation
STUDY SESSION ACTION ❑ Consent Agenda ❑ General Business ® Public Hearing
RECOMMENDED MOTION
September 18, 2013 —1st Public Hearing (No Action)
October 2, 2013 — 2nd Public Hearing (No Action)
Date to be determined — (Full Council attendance required to take action)
Move to approve the Letter of Agreement for lease and the Lease with West Sound FC Premier Soccer Club for
the Pendergast soccer fields and authorize the Mayor to finalize and execute both the Letter of Agreement and
the Lease with substantially the same terms and conditions as presented
COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01(25(13
Letter of Agreement
Between City of Bremerton
and West Sound FC Premier Soccer Club
for the Lease of Soccer Fields
This letter of Agreement between the City of Bremerton ( "City ") and West Sound FC
Premier Soccer Club ( "Lessee ") relates to the lease, attached hereto as Exhibit A, of two (2)
soccer fields and associated property at Pendergast Park
This Letter of Agreement serves the purpose of allowing Lessee to obtain a commitment
from the City to enter into the attached lease in order to enable procurement of grant and
foundation funds by Lessee to make the agreed upon improvements to Pendergast Park It also
provides for continued use of the fields by the City until such time as the Lease is executed and
construction is imminent
By this Letter of Agreement, the parties stipulate that they will not execute the lease
agreement until such time as Lessee has accumulated the financial and in -kind resources
necessary to begin construction of the artificial turf improvements to the two (2) soccer fields
This Letter of Agreement will expire on June 30, 2015 If the lease is not executed by said date,
any and all rights to the lease by Lessee shall expire During the interim period, prior to full
execution of the attached lease, the City will continue to have full right to use, maintain, and
schedule the soccer fields Lessee shall have no right or interest in the fields until the Lease is
fully executed
This Letter of Agreement and attached lease are subject to approval of the City Council
prior to execution of this letter
Approved by City Council 5 2013
CITY OF BREMERTON WESTSOUND FC PREMIER SOCCER
CLUB If
By Patty Lent By
Its Mayor Its
Date Date
APPROVED AS TO FORM
Roger A Lubovich, City Attorney
R \Legal \Legal\Files \Current Active Files\Pendergast Park \WestSound FC Premier Soccer Club Lease \Letter of Agreement -
WestSound FC Premier Soccer Lease docx
EXHIBIT A
PENDERGAST SOCCER FIELD LEASE
THIS LEASE AGREEMENT (hereinafter "Lease ") is between the CITY OF
BREMERTON, a municipal corporation of the State of Washington, with offices located at 345
6th Street, Suite 600, Bremerton, Washington 98337 (hereinafter "City"), and WESTSOUND
FC PREMIER SOCCER CLUB, a non -profit corporation, (hereinafter "Lessee ")
1 PROPERTY
11 Property Defined The City leases to Lessee and Lessee leases from the City the
real property consisting of 5 93 acres encompassing 2 fields and buffer area described in Exhibit
A, attached hereto and incorporated herein by this reference, together with all the rights of the
City, if any, to improvements on and easements benefiting the property but subject to the
exceptions and restrictions set forth in this Lease (collectively the "Property" or "Leased
Property")
12 Survey, Maps, and Plans Lessee is not relying upon and the City is not making
any representations about any survey, plat, diagram, and /or legal description provided by the
City
13 Acceptance of Propert y The City makes no representation regarding the
condition of the Property, or the improvements located on the Property Lessee has examined the
Property and accepts it in its present condition
2 USE
21 Permitted Use The Property shall be used for soccer or compatible sports,
practice, games, and tournaments, and for concessions to service the aforementioned uses (the
"Permitted Use ") and for no other business or purpose, without the prior written consent of the
City The Property shall not be used for illegal purposes It is agreed that this lease shall not be
construed as the City's waiver of land use or building code provisions that would otherwise apply
to any improvements or uses of the site
The Lessee is responsible for scheduling the Property including fields and lighting It is
understood by the parties that the Lessee will work cooperatively with the City to establish
guidelines outlining field use priority for school teams, current users of the Pendergast soccer
fields, Bremerton based organizations, etc Lessee shall be entitled to revenue derived from field
and light rental and concession proceeds, with the exception of the consideration to the City
Lessee shall allow for community access for use of the Property by non - members at
reasonable times and rates not to exceed averages for similar artificial turfed soccer facilities in
the Kitsap- Pierce County area Scheduling priority for non - member usage will be in the
following order
1) Bremerton based youth recreational soccer,
2) Youth recreational soccer,
3) Adult recreational soccer,
4) School and collegiate soccer,
5) Other recreational sports as appropriate for artificial turf play, and
6) Professional and semi - professional soccer and field sports
1
Pendergast Soccer Field Lease
EXHIBIT A
22 Parking Lot Along with use of the Property, Lessee shall be entitled to the non-
exclusive use of the lighted parking area so described in Exhibit B, attached hereto and
incorporated by this reference herein
23 Conformance with Laws Lessee shall, at all times, keep current and comply with
all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes,
and other government rules and regulations regarding its use or occupancy of the Property
24 Liens and Encumbrances Lessee shall keep the Property free and clear of any
liens and encumbrances ansing out of or relating to its use or occupancy of the Property At the
City's request, Lessee shall furnish the City with written proof of payment or any item which
would or might constitute the basis for such a lien on the leased Property if not paid
25 Use Restrictions The Lessee shall not carry on upon the demised Property, any
trade or activity, which would constitute a nuisance or hazard to the public, and shall not
substantially deviate from its announced and original use of the property, without consultation
and consent from the City
26 Alcohol No alcohol is to be served or consumed on the leased Property unless
authorized by BMC 13 04 140
3 TERM
3 1 Term The term of this Lease is fifteen (15) years (the "initial tern "), beginning
on the day of , 20 (the "commencement date "), and ending on the
day of , 20_ (the "termination date "), unless terminated sooner under the
terms of this Lease
32 Extension of Term Prior to the expiration of the Initial term of this lease, Lessee
may request to extend the term of this lease in the event Lessee desires to replace the artificial
turf on the play fields in order to amortize the cost A request to extend the term of the lease
must be made prior to installation of the artificial turf Any extension is subject to mutual
agreement of the parties regarding the lease payment and other terms and conditions and is
further subject to City Council approval There is no guarantee of an extension of the term of
this lease beyond the initial term
3 3 End of Term Upon the expiration or termination of the term of this lease, as
applicable, Lessee shall surrender the Property to the City in the same or better condition as
existed on the commencement date, reasonable wear and tear excepted
3 5 Hold Over If Lessee remains in possession of the Property after the termination
date, the occupancy shall not constitute an extension or renewal of the term The occupancy shall
be a month -to -month tenancy, on terms identical to the terms of this Lease, which may be
terminated by either party on thirty (30) days written notice The monthly rent during the
holdover shall be the same rent which would be due if the Lease were still in effect and all
adjustments in rent were made in accordance with its terms If the City provides a notice to
vacate the Property in anticipation of the termination of this Lease or at any time after the
termination date and Lessee fails to do so within the time set forth in the notice, then Lessee shall
be a trespasser and shall owe the City all amounts due under applicable law
2
Pendergast Soccer Field Lease
EXHIBIT A
4 CONSIDERATION
41 Lease Payment During the Initial Term of this lease, Lessee shall pay to the City
a monthly lease payment of nine hundred nineteen dollars and 75/100 ($919 75) based on the
factors as set forth in Exhibit C, attached hereto and incorporated by this reference herein ( "lease
payment ") The first installment shall be due and payable on or before the commencement date,
and subsequent installments shall be due and payable on or before the same day of each month
thereafter Lessee shall also pay Leasehold Excise Tax set forth in Section 4 2 below The lease
payment shall be adjusted by the Consumer Price Index (CPI) as set forth in Section 4 3 below
42 Leasehold Tax Lessee agrees to pay the leasehold excise tax on the lease
payment pursuant to Chapter 82 29A RCW currently in the amount of 12 84 percent and as may
be adjusted pursuant to Ch 82 29A RCW
43 Consumer Price Index (CPI) Adjustment The lease payment will be adjusted by
the Consumer Price Index (CPI) for All Urban Consumers (CPI -U) as published by the United
States Department of Labor for Seattle- Tacoma - Bremerton For purposes of the CPI adjustment,
the base shall be the June 2012 CPI index The CPI adjustment shall occur on the following
January 1 St of each year during the term of this Agreement In no instance shall the adjustment be
negative In addition, Lessee agrees to pay when due, the leasehold excise tax, or any additional
assessments thereto, with respect to any payment or obligation hereunder, which is deemed by
the State of Washington to be taxable rent under said chapter and to indemnify and hold the
Lessor harmless from the same
44 Pa Men Lessee shall pay quarterly to the City by the fifteenth day of the month
following the end of each quarter, or as otherwise required by the State of Washington, the
amount of the leasehold tax owing Lessee may prepay these quarterly payments on a semi-
annual or annual basis or as otherwise approved by the City
45 Payment Place Payment is to be made to the City of Bremerton, Attn
Department of Financial Services, 345 6 1 Street, Suite 600, Bremerton, Washington 98337
5 UTILITIES MAINTENANCE AND TAXES
During the Term, Lessee shall pay the following additional expenses
51 Utilities Lessee shall pay all fees charged for utilities in connection with the use
and occupancy of the Property, including but not limited to electricity, stormwater, water, gas,
and telephone service In addition, Lessee shall pay City the following
Soccer field lighting controller $500 per year
Lighting maintenance (parking lot) $1,000 per year
Parking lot maintenance & repair $1,000 per year
These annual expenses to the City shall be made in equal monthly payments in
conjunction with the lease payment These payments shall be adjusted by the Consumer Price
Index (CPI) as set forth in Section 4 3 above
5.2 Taxes Lessee shall be liable for, and shall pay, throughout the term of this lease
before delinquency, all license and excise fees and occupation taxes covering the business
conducted on the Property and taxes that may be on leasehold improvements created under this
lease agreement
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Pendergast Soccer Field Lease
EXHIBIT A
53 Proof of Payment Lessee shall, if required by the City, furnish to the City
receipts or other appropriate evidence establishing the payment of any amounts required to be
paid under the terms of this Lease
55 Failure to Pay If Lessee fails to pay any of the amounts due under this Lease, the
City may pay the amount due, and recover its cost in accordance with the provisions of Section 6,
unless Lessee has contested any amount due pursuant to Section 5 3 above
6 LATE PAYMENTS AND OTHER CHARGES
61 Late Charge If any rental payment is not received by the City within ten (10)
days of the date due, Lessee shall pay to the City a late charge equal to four percent (4 %) of the
amount of the lease payment due to defray the overhead expenses of the City incident to the
delay
62 Interest Penalty for Past Due Lease Payments and Other Sums Owed If a Lease
Payment is not paid within thirty (30) days of the date due, then Lessee shall, in addition to
paying the late charges determined under Subsection 6 1, above, pay interest on the amount
outstanding at the rate of one percent (I %) per month until paid If the City pays or advances any
amounts for or on behalf of Lessee, including but not limited to leasehold taxes, taxes,
assessments, insurance premiums, costs of removal and disposal of unauthorized materials, costs
of removal and disposal of improvements pursuant to Section 7 below, or other amounts not paid
when due, Lessee shall reimburse the City for the amount paid or advanced and shall pay interest
on that amount at the rate of one percent (I%) per month from the date the City notifies Lessee of
the payment or advance unless Lessee has contested any amount due pursuant to Section 5 3
above
63 No Counterclaim, Setoff, or Abatement of Rent Except as expressly set forth
elsewhere in this Lease, rent and all other sums payable by Lessee pursuant to this Lease shall be
paid without the requirement that the City provide prior notice or demand, and shall not be
subject to any counterclaim, setoff, deduction, defense or abatement
7 IMPROVEMENTS
71 Lessee -Owned Improvements - Ownership So long as this Lease remains in
effect, Lessee shall retain ownership of all authorized improvements and trade fixtures it may
place on the Property (collectively "Lessee -Owned Improvements ") Lessee -Owned
Improvements shall not include any construction, reconstruction, alteration, or addition to the
Property by the City (City -Owned Improvements) or any Unauthorized Improvements as defined
in Subsection 7 6 below No Lessee -Owned Improvements shall be placed on the Property
without the City's prior written consent All Lessee -Owned Improvements upon the Property will
revert to the ownership of the City, without payment by the City, at the expiration of the lease or
its earlier termination However, if the City terminates the lease without cause prior to the
expiration of the Initial Term, Lessee will be entitled to a payment equal to the depreciated value
of the Lessee -Owned Improvements with the parties agreeing that all such improvements,
including the artificial turf, have a 15 (fifteen) year life expectancy
72 Soccer Fields Lessee agrees to make capital improvements to (2) soccer fields
by upgrading sand fields to artificial turf fields Plans for permanent improvements shall be
approved in writing by the City in advance
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EXHIBIT A
73 Restrooms The parties agree that permanent restroom facilities in proximity to
the soccer fields are needed and agree to work cooperatively toward the development of
restrooms In the interim the Lessee shall be responsible for the provision of portable chemical
toilets as needed to meet public health requirements and user convenience And the City shall
continue to maintain the pit toilet located at the parking area until this toilet is no longer needed
74 Signs No signs or other advertising material shall be attached to or painted on or
within the leased Property without the approval of the City, except warning signs, advertising on
perimeter fencing, facility rules and regulations, signs identifying the name of the Property and
facilities at the Property At the termination, or sooner expiration of this lease, all such signs or
advertising material attached to or painted by the Lessee shall be removed by Lessee at its own
expense, and Lessee shall repair any damage or injury to the Property, and correct any unsightly
condition, caused by maintenance and removal of said signs
75 Construction Lessee is responsible for permitting, design, construction and
maintenance of improvements Prior to Lessee commencing any construction, alteration,
replacement, removal or mayor repair of any improvements (whether City -Owned or Lessee -
Owned), Lessee shall submit to the City plans and specifications which describe the proposed
activity Construction shall not commence until the City Director of Parks and Recreation
Department or the Director of Community Development, as applicable, for permitting purposes,
or their designee) has approved those plans and specifications in writing The City shall have
thirty (30) days in which to review the proposed plans and specifications The plans and
specifications shall be deemed approved and the requirement for the City's written consent shall
be treated as waived, unless the City notifies Lessee otherwise within the thirty (30) days Upon
completion of construction, Lessee shall promptly provide the City with as -built plans and
specifications The City's consent and approval shall not be required for any routine
maintenance or repair of improvements made by the Lessee pursuant to its obligation to maintain
the Property in good order and repair that does not result in the construction, alteration,
replacement, removal, or mayor repair of any improvements on the Property The provisions of
this section do not obviate any permit requirements that may apply to the proposed activity
76 Unauthorized Improvements Improvements made on the Property without the
City's prior consent pursuant to Subsection 7 4 or which are not in conformance with the plans
submitted to and approved by the City ( "Unauthorized Improvements ") shall immediately
become the property of the City, unless the City elects otherwise Regardless of ownership of
Unauthorized Improvements, the City may, at its option, require Lessee to sever, remove, and
dispose of them, charge Lessee rent for the use of them, or both If Lessee fails to remove an
Unauthorized Improvement upon request, the City may remove it and charge Lessee for the cost
of removal and disposal
8 HAZARDOUS SUBSTANCES — INDEMNITY
8 1 Lessee shall indemnify and hold harmless the City from and against any and all
claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits, and costs and
expenses which accrue to or are incurred by the City which anse directly or indirectly from the
discovery or cleanup of hazardous substances from the Property which are deposited on the
Property during the tern of this Lease City shall indemnify and hold harmless the Lessee from
and against any and all claims, demands, damages, losses, liens, liabilities, penalties, fines,
lawsuits, and costs and expenses which involve the placement of hazardous substances upon the
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Pendergast Soccer Field Lease
EXHIBIT A
Property prior to or after the termination or expiration of this lease The provisions of this
section shall survive the termination or expiration of this Lease
82 Hazardous substance shall mean any waste or material defined or designated as
hazardous, toxic or dangerous by any federal, state or local statute, regulation or ordinance
presently in effect or adopted during the term of this Lease
9 ASSIGNMENT AND SUBLETTING
91 City Consent Required Except for field use rentals and related concession
rentals, Lessee shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in this Lease or the Property without the City's prior
written consent, which may not be unreasonably withheld by the City In the event of such
consent, each permitted transferee shall assume all obligations under this Lease, including the
any lease payment No assignment, sublet, or transfer shall release, discharge, or otherwise affect
the liability of Lessee
92 Lease Payments Following Assignment The acceptance by the City of any lease
payment following an assignment or other transfer shall not constitute consent to any assignment
or transfer
93 Renting g_ f Property Lessee has the right to rent the Property on a per hour basis
and retain revenue from such rental Property may not be rented to a third party for other than
standard field rental without the advanced written approval of the City
10 INDEMNITY
101 The City shall not be liable for any injury to any person or for any loss of or
damage to any property (including property of Lessee) occurring in or about the leased Property
or the buildings thereon and caused by or resulting from any act or omission by Lessee, any
officer, agent, employee, guest, invitee, or visitor of Lessee, and, during the full term hereof,
Lessee agrees and covenants to indemnify, defend, and hold harmless the City and those persons
who were, now are, or shall be duly elected or appointed officials or members or employees or
agents thereof, against and from any loss, damage, costs, charge, expense, liability, claim,
demand, or judgments of whatsoever kind or nature (including attorney's fees and costs) whether
to persons or property, to the extent arising on said Property, in or on said building(s), or on any
areas adjoining the same, which is under the control or use of Lessee pursuant to this Lease and
arising out of or in connection with Lessee's use and occupancy of said Property City agrees
and covenants to indemnify, defend, and hold harmless the Lessee, its officers, employees, and
agents thereof, against and from any loss, damage, costs, charge, expense, liability, claim,
demand, or judgment of whatsoever kind or nature whether to persons or property, arising out of
or in connection with the City's negligence in its performance under this Agreement
102 Should a court of competent jurisdiction determine that this Lease is subject to
RCW 4 24 115, then, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of Lessee and the
City, its officers, officials, employees, and volunteers, the Lessee's liability hereunder shall be
only to the extent of the Lessee's negligence
10 3 IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT
THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE LESSEE'S WAIVER
OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51, RCW SOLELY FOR THE
6
Pendergast Soccer Field Lease
EXHIBIT A
PURPOSES OF THIS INDEMNIFICATION This waiver has been mutually negotiated by the
parties
The provisions of Section 10 shall survive the expiration or termination of this Lease
11 INSURANCE
11 1 General Commercial Liability Insurance Lessee agrees to procure and maintain
in force during the term of this Lease and any extension thereof, at its expense, general
commercial general liability insurance This insurance shall be adequate to protect against
liability for damage claims through public use of or from accidents or other liability ansmg out of
Lessee's use or occupancy of the Property and buildings thereon This insurance shall be in a
minimum amount of $2,000,000 combined single limit per occurrence and $4,000,000 aggregate
for bodily injury, personal injury and property damage which may be covered under a blanket
policy Lessee agrees that, if such insurance policies are not kept in force during the tern of this
Lease and any extension thereof, the City may procure the necessary insurance, pay the premium
therefor, and that such premium shall be repaid to the City on demand The City shall be named
as an additional insured as to liability ansmg out of the Property and buildings thereon and the
insurance of Lessee shall be the primary insurance as to said liability
112 Lessee's Property Insurance Lessee shall purchase and maintain for the term of
the lease, property insurance covering any improvements to the premises for their full
replacement value
113 Certificate of Insurance Lessee shall provide to the City documentary evidence,
certified by the insurer, of all insurance(s) required in this Lease
114 Subrogation The City shall not be liable to Lessee (by way of subrogation or
otherwise) or to any insurance company insuring the other party for any loss or damage to any
building, structure, or other tangible property, or any resulting loss of income, or losses under
worker's compensation laws and benefits, if any such loss or damage is covered by insurance
benefiting the party suffering such loss or damage or was required to be covered by insurance
pursuant to this Lease Lessee shall, upon obtaining the policies of insurance required give
notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is
contained in this Lease
12 MAINTENANCE AND REPAIR
121 The City's Repairs The City shall not be required to make any alterations,
maintenance, replacements, or repairs in, on, or about the Property, or any part thereof, during the
tern
122 Lessee's Repairs, Alteration, Maintenance and Replacement
(a) Lessee shall, at its sole cost and expense, keep and maintain the Property
and all improvements (regardless of ownership) in good order and repair, in a clean, attractive,
and safe condition
(b) Lessee shall, at its sole cost and expense, make any and all additions,
repairs, alterations, maintenance, replacements, or changes to the Property or to any
improvements on the Property which may be required by any public authority
(c) All additions, repairs, alterations, replacements or changes to the Property
and to any improvements on the Property shall be made in accordance with, and ownership shall
be governed by, Section 7, above
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Pendergast Soccer Field Lease
EXHIBIT A
13 DAMAGE OR DESTRUCTION
131 In the event of any damage to or destruction of the Property or any improvements,
Lessee shall promptly give written notice to the City
132 In the event fire, storm, earthquake or other cause does damage to the
improvements on the demised Property, the Lessee may elect to make such repairs as are
necessary to restore improvements to a safe, neat and useable condition Otherwise, the City may
elect to terminate this lease by giving notice to the Lessee in writing if the Property is not
restored within a reasonable time after the date of the casualty City will be responsible for
repairing City -owned improvements, roads, parking, and utilities as elsewhere within the park If
the park should be abandoned because of severe damage, then the lease shall be terminated and
the Lessee may remove the artificial turf and Lessee's improvements that are not permanently
affixed to the Property
132 Unless this Lease is terminated, there shall be no abatement or reduction in rent
due to any damage or destruction of the Property
14 DEFAULT AND REMEDIES
141 Acts Constituting Default Lessee shall be in default of this Lease on the
occurrence of any of the following
(a) Failure to pay Rent or other expenses when due,
(b) Failure to comply with any law, regulation, policy, or order of any lawful
governmental authority,
(c) Failure to comply with any other provision of this Lease,
(d) Failure to cure a default pursuant to Section 14 2 below, or
(e) Proceedings are commenced by or against Lessee under any bankruptcy
act or for the appointment of a trustee or receiver of Lessees' property
142 Failure to Cure A default shall become an event of default ( "Event of Default ") if
Lessee fails to cure the default within thirty (30) days after the City provides Lessee with written
notice of default, which specifies the nature of the default
143 City's Remedies upon Default Upon an Event of Default, the City may terminate
this Lease and remove Lessee by summary proceedings or otherwise The City may also, without
terminating this Lease, relet the Property on any terms and conditions as the City in its sole
discretion may decide are appropriate If the City elects to relet, rent received by it shall be
applied (1) to the payment of any indebtedness other than rent due from Lessee to the City, (2) to
the payment of any cost of such relethng, (3) to the payment of the cost of any alterations and
repairs to the Property, and, (4) to the payment of rent and leasehold excise tax due and unpaid
under this Lease Any balance shall be held by the City and applied to Lessee's future rent as it
becomes due Lessee shall be responsible for any deficiency created by the reletting during any
month and shall pay the deficiency monthly The City's reentry or repossession of the Property
under this subsection shall not be construed as an election to terminate this Lease or cause a
forfeiture of rents or other charges to be paid during the balance of the term, unless the City gives
a written notice of termination to Lessee or termination is decreed by legal proceedings The
City may at any time after relettmg elect to terminate this Lease for the previous Event of
Default
8
Pendergast Soccer Field Lease
EXHIBIT A
15. ENTRY BY THE CITY The City shall have the right to enter the Property at any
reasonable hour to inspect for compliance with the terms of this Lease upon twenty -four (24)
hours notice The City and /or City's agents shall comply with all of Lessee's work safety rules
and restrictions, including but not limited to following Lessee's warning instructions and,
without prior approval of the Lessee, keep out of restricted areas of the Property due to pesticide,
fertilizer, and other chemical and hazardous substance exposures on the Property
16 NOTICE Any notices required or permitted under this Lease may be personally
delivered, delivered by facsimile machine, or mailed by certified mail, return receipt requested, to
the following addresses or to such other places as the parties may direct in writing from time to
time
The City City of Bremerton
Attn Director of Parks and Recreation
680 Lebo Boulevard
Bremerton, Washington 98310
Lessee WestSound FC Soccer Club
P O Box 828
Silverdale, WA 98383
A notice shall be deemed given and delivered upon personal delivery, upon receipt of a
confirmation report if delivered by facsimile machine, or three (3) days after being mailed as set
forth above, whichever is applicable
17 MISCELLANEOUS
171 Authonty Lessee and the person or persons executing this Lease on behalf of
Lessee represent that Lessee is qualified to do business in the State of Washington, that Lessee
has full right and authority to enter into this Lease, and that each and every person signing on
behalf of Lessee is authorized to do so
172 Successors and Assigns This Lease shall be binding upon and inure to the benefit
of the parties, their successors and assigns
173 Entire Agreement This Lease, including the exhibits and addenda, if any,
contains the entire agreement of the parties All prior and contemporaneous agreements,
promises, representations, and statements relating to this transaction or to the Property, if any, are
merged into this Lease
17 4 Waiver The waiver by the City of any breach or default of any term, covenant, or
condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition,
of any subsequent breach or default of the same, or of any other term, covenant, or condition of
this Lease The City's acceptance of a rental payment shall not be construed to be a waiver of
any preceding or existing breach other than the failure to pay the particular rental payment that
was accepted
175 Cumulative Remedies The rights and remedies of the City under this Lease are
cumulative and in addition to all other rights and remedies afforded to the City by law or equity
or otherwise
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Pendergast Soccer Field Lease
I
EXHIBIT A
17 6 Time is of the Essence TIME IS OF THE ESSENCE as to each and every
provision of this Lease
177 Invalidi If any provision of this Lease shall prove to be invalid, void, or illegal,
it shall in no way affect, impair, or invalidate any other provision of this Lease
178 Applicable Law and Venue This Lease shall be interpreted and construed in
accordance with the laws of the State of Washington Any reference to a statute shall mean that
statute as presently enacted or hereafter amended or superseded Venue for any action ansing out
of or in connection with this Lease shall be in the Superior Court for Kitsap County, Washington
179 Attorneys' Fees In the event of litigation to enforce any of the terns or
provisions herein, each party shall pay all its own costs and attorney's fees
1710 Entire Agreement —Amendments This agreement constitutes the whole
agreement between the City and Lessee There are not terms, obligations, covenants or
conditions other than those contained herein No modification or amendment of this agreement
shall be valid and effective without the written consent of both parties
1711 Survival of Covenants The covenants contained herein survive the termination or
expiration of the Lease for the applicable statute of limitation periods
17 12 Quiet Enjoyment The City covenants and agrees that Lessee, upon performing
the terns and conditions of the Lease, may peacefully hold and enjoy the Property during said
term without any interruption by the City, its successors or assigns City will use its best efforts
not to interfere with Lessee's business or right of access to and from the Property during the term
of this Lease
17 13 Non - Discrimination The Lessee shall operate the Property in such a fashion to
insure that no person is discriminated against on the basis of sex, national origin, race, creed or
color In addition, Lessee shall assure that no qualified person with a disability shall be
discriminated against in access to and use of the facility
17 14 Recording of Short Form Lease Neither the City nor Lessee may record this
Lease without the other's prior approval, but the parties will at any time at the request of either
party promptly execute duplicate originals of an instrument, in recordable form, which will
constitute a short form of this lease, setting forth a description of the Property, the terms of this
lease and other provisions hereof, except the rental and other provisions as either party may
request, which may be recorded
17 15 Duplicate Originals This Lease Agreement may be executed in duplicate
originals
THIS AGREEMENT requires the signature of all parties and is executed as of the date
of the last signature below
CITY OF BREMERTON WESTSOUND FC PREMIER SOCCER
CLUB
By Patty Lent By
Its Mayor Its
Date Date
10
Pendergast Soccer Field Lease
EXHIBIT A
APPROVED AS TO FORM
Roger A Lubovich, City Attorney
STATE OF WASHINGTON )
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Patty Lent is the person who
appeared before me, and acknowledged that she signed this instrument, on oath stated that she
was authorized to execute the instrument, and acknowledged it as Mayor of the City of
Bremerton to be the free and voluntary act of such City for the uses and purposes mentioned in
the instrument
WITNESSETH my hand and seal this day of , 201
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires
STATE OF WASHINGTON )
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that is the
person who appeared before me, and acknowledged that (s)he signed this instrument, on oath
stated that (s)he was authorized to execute the instrument, and acknowledged it to be the free and
voluntary act for the uses and purposes mentioned in the instrument
WITNESSETH my hand and seal this day of 5 201_
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires
R \Legal\Legal\Files \Current Active Files\Pendergast Park \WestSound FC Premier Soccer Club Lease \WestSound FC Premier Soccer Center
Lease 5 -16 13 - Final doc
11
Pendergast Soccer Field Lease
EXHIBIT A
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PENDERGAST REGIONAL PARK
OUTDOOR SOCCER FIELDS (7 & 8)
PROPERTY VALUE AND LEASE CALCULATION
LAND VALUE CALCULATION
CONCESSION SITE AREA 256,417 SQ FT
SQ FT PER ACRE 43,560 SQ FT
CONCESSION SITE AREA 5 887 ACRES
PARCEL VALUATION (PER ACRE) $25,000 PER ACRE
CONCESSION SITE LAND VALUE $147,163
LEASE PAYMENT CALCULATION
CONCESSION SITE LAND VALUE $147,163
PREFERED RETURN ON LEASE 750%
ANNUAL LAND LEASE $11,037
CONCESSION CALCULATION
ANNUAL LAND LEASE $11,037 per year
SOCCER FIELD LIGHTING CONTROLLER $500 per year
LIGHTING MAINTENANCE (PARKING LOT) $1,000 per year
PARKING LOT MAINTENANCE & REPAIR $1,000 per year
TOTAL CONCESSION AMOUNT $13,537 per year
AGENDA BILL !BA
CITY OF BREMERTON
CITY COUNCIL
■■ 0NaME0NEM0NE0aMN0NE00aa0000000EN0000MM00MNMEEEEEEEEEE00000EEN0NE000EE000E0E00000EEaNaI
SUBJECT Ordinance No 5224 Study Session Date September 25, 2013
establishing a fiscal policy regarding the use COUNCIL MEETING Date October 2, 2013
of utility tax revenue and payment in lieu of Department Finance
property tax (PILOT) revenue assessed Presenter Becky Hasart
against City utilities Phone Ext 5722
SUMMARY The City currently assesses both a utility tax (9 5% for water and 14% for wastewater
and Stormwater) and a PILOT tax (6% for all three utilities) against its own utilities These taxes are
a revenue stream to the general fund The attached ordinance would establish a fiscal policy that
would cap the general fund revenue from this stream to the amount of 2013 actual receipts and
redirect any future year increases in this revenue stream to the street fund
ATTACHMENTS Ordinance No 5224 establishing a fiscal policy regarding the use of utility tax
revenue and payment in lieu of property tax revenue assessed against City utilities
FISCAL IMPACTS (Include Budgeted Amount) Based on projected 2013 receipts and proposed
2014 budgeted utility revenue, the General Fund's tax receipt is estimated at $4,107,579 and the
incremental increase to the street fund is estimated at $196,599
STUDY SESSION AGENDA ❑ No Presentation ❑x Full Presentation
STUDY SESSION ACTION ❑ Consent Agenda ❑x General Business ❑ Public Hearing
RECOMMENDED MOTION
Move to approve Ordinance No 5224 of the City Council of the City of Bremerton, Washington,
establishing a fiscal policy regarding the use of utility tax revenue and payment in lieu of property tax
(PILOT) revenue assessed against City of Bremerton owned water, wastewater, and Stormwater
utility revenues
COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 11/02/12
ORDINANCE NO 5224
AN ORDINANCE of the City Council of the City of Bremerton,
Washington, establishing a fiscal policy regarding the use of utility tax
revenue and payment in lieu of property tax (PILOT) revenue assessed
against City of Bremerton owned water, wastewater, and Stormwater
utility revenues
WHEREAS the current provisions of Section 3 50 050 of the Bremerton Municipal Code
establishes a utility tax of nine and one half (9 5) percent to be assessed against the total gross income
of every person engaging in the business of providing water utility service conducted within the City, and
WHEREAS the current provisions of Section 3 50 050 of the Bremerton Municipal Code
establishes a utility tax of fourteen (14) percent to be assessed against the total gross income of every
person engaging in the business of providing wastewater and Stormwater utility service conducted
within the City, and
WHEREAS the current provisions of Section 3 50 050 of the Bremerton Municipal Code
establishes a payment in lieu of tax (PILOT) fee of six (6) percent to be assessed against the total gross
income of every person engaging in the business of providing water, wastewater, and Stormwater utility
conducted within the City, and
WHEREAS tax receipts from these assessments may be used for general fund purposes and
street fund purposes,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON DOES
HEREBY ORDAIN AS FOLLOWS
SECTION 1 For fiscal year 2013, utility tax receipts and PILOT tax receipts from City owned
water, wastewater, and Stormwater utility services shall be General Fund revenue
SECTION 2 For fiscal years after 2013, utility tax receipts and PILOT tax receipts from City
owned water, wastewater, and Stormwater utility services to the General Fund shall be the same dollar
amount as received in fiscal year 2013 Any tax revenue from the utility tax and PILOT tax receipts in
excess of the 2013 General Fund amounts shall be deposited in the City Street Fund
SECTION 3 Severability If any one or more sections or sentences of this Ordinance are held to
be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions 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
i
PASSED by the City Council this 2 "d day of October, 2013
GREG WHEELER, Council President
Approved this day of October, 2013
PATTY LENT, Mayor
ATTEST APPROVED AS TO FORM
SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney
PUBLISHED the day of , 2013
EFFECTIVE the day of , 2013
ORDINANCE NO
From Roy Runyon <gulfowl @yahoo com>
Sent Wednesday, October 02, 2013 12 27 AM
To City Council, Patty Lent
Cc Marley @kitsapsun com
Subject Fw Ordinance to establish a Fiscal Policy regarding the use of Utility Tax Revenue and
Payment in Lieu of property Tax (PILOT)
Council Members,
Please add the following to the official record of the City Council meeting of Wedneday, October 2, 2013
I suggest Ordinance No 5224, establishing a fiscal policy regarding the useof utility tax revenue and payment
in lieu of property tax (PILOT) revenue assessed against City utilities, be amended to require that collection of
utility tax and PILOT from City -owned utilities be disclosed annually to all City -owned utility rate
payers Here is an amended SECTION 2 with the suggested change underlined
SECTION 2 For fiscal years after 2013, utility tax receipts and PILOT tax receipts from City
owned water, wastewater, and Stormwater utility services to the General Fund shall be the same dollar
amount as received in fiscal year 2013 Any tax revenue from the utility tax and PILOT tax receipts in
excess of the 2013 General Fund amounts shall be deposited in the City Street Fund For fiscal years after
2013, the City shall disclose annually to all City -owned water, wastewater and stormwater utility rate pavers
the following the utility tax rates and PILOT rates, the cost of the utility tax and PILOT to each utility, the
percentage of each rate payer's bill that goes to pay the utility tax and PILOT, and what the utility tax and
PILOT revenue is used for
Including this amendment will make the utility bills and City finances more transparent and clearly explain how
utility ratepayers are subsidizing the General Fund and Street Fund Voila', the utility tax and PILOT are no
longer "stealth" taxes
Thank You,
Roy Runyon
Concerned citizen
2449 Snyder Ave, Bremerton
360 - 440 -0620
- - - -- Forwarded Message - - - --
From Roy Runyon < gulfowl(u)_yahoo com
To " citycouncil(fti bremerton wa us < citycouncil()ci bremerton wa us
Sent Monday, September 23, 2013 1141 AM
Subject Ordinance to establish a Fiscal Policy regarding the use of Utility Tax Revenue and Payment in Lieu of property
Tax (PILOT)
Council Members,
Please consider adding a provision to this draft ordinance requiring annual disclosure of the following
1
I PILOT tax rates,
2 cost to each of the City -owned utilities,
2 what percentage of a "typical" rate payer's bill goes to pay PILOT
3 what PILOT revenue is used for and percentages to each use (e g General Fund activities and Street
Funding)
This disclosure should be made on the first rate payers' utility bill of each new fiscal year
This improves transparency of the PILOT and its uses
Thank You,
Roy Runyon
2449 Snyder Ave, Bremerton
360 - 440 -0620
2
From Roy Runyon <gulfowl @yahoo com>
Sent Monday, September 23, 2013 11 41 AM
To City Council
Subject Ordinance to establish a Fiscal Policy regarding the use of Utility Tax Revenue and Payment
in Lieu of property Tax (PILOT)
Council Members,
Please consider adding a provision to this draft ordinance requiring annual disclosure of the following
1 PILOT tax rates,
2 cost to each of the City -owned utilities,
2 what percentage of a "typical" rate payer's bill goes to pay PILOT
3 what PILOT revenue is used for and percentages to each use (e g General Fund activities and Street
Funding)
This disclosure should be made on the first rate payers' utility bill of each new fiscal year
This improves transparency of the PILOT and its uses
Thank You,
Roy Runyon
2449 Snyder Ave, Bremerton
360 - 440 -0620
i
le
Move to authorize City Attorney to initiate legal action to foreclose on
certain property within ULID 2002 -01, the owners of which are
delinquent in paying the required assessment
Move to City Attorney to take legal action, including filing a
lawsuit, related to Code violations at 649 and 653 Washington Avenue.
Move to authorize the City Attorney to enter into an amendment to the
NPDES Coalition Interlocal Agreement in substantially the same form
as presented to Council and to pay an additional $10,000 for legal
services and litigation costs for the appeal