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03/05/2014 AGENDA
I I r4= I �5 ���11�I13U1�1V CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360) 473 -5280 MARCH 5, 2014 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 4 PUBLIC RECOGNITION 5 CONSENT AGENDA A Claims & Check Register B Minutes of Meeting — February 19, 2014 C Minutes of Study Session — February 26, 2014 D Resolution No 3213 to establish April 2, 2014 as a public hearing date to vacate a portion of the Adele Avenue right -of -way at the Bertha Avenue intersection E Sole Source Purchase for a 2014 Ford F -550 Maintenance Truck from Cobalt Truck Equipment for the Wastewater Plant and Sewer Pump Stations F Contract with SMS- Superior Maintenance Solutions for Arterial Street Sidewalk Landscape Maintenance G Contract with Action Services Corporation for Hot Applied Street Traffic Markings H Resolution No 3214 to authorize investment of City monies in the Local Government Investment Pool I Staffing Adjustments to the Financial Services Department 6 GENERAL BUSINESS — There are no General Business items tonight 7 PUBLIC HEARINGS A 1 of 2 Public Hearings to approve Sub - concession and Future Assignment of the Olympic Soccer & Sports Center (OSSC) Concession Agreement to Keystone Financial Management, Inc (Action anticipated at 2" Public Hearing on March 19 ) B Public Hearing to approve Ordinance No 5241 to revoke the Wheaton - Riddell District Center Sub Area Plan 8 COUNCIL MEMBER REPORTS 9 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 PLEASE PRINT YOUR NAME BELOW IF YOU PLAN TO COMMENT & YOU WISH YOUR NAME TO BE INCLUDED IN THE RECORD ,ma t3o -c6 i car (ZjJ ovoss Ac � U,a, (,-)aL6, V NCCA r � e 7o REQUESTS FOR INFORMATION MUST BE SUBMITTED IN WRITING TO THE CLERK THANK YOU Proclamation WHEREAS, On November 12, 1942, Robert "Bob" Montgomery was invited to loin the United States Army by none other than President Franklin Delano Roosevelt himself and so left the Puget Sound to fight in World War II, and WHEREAS, after the War, Bob moved with his father to Bremerton and set up shop and worked on typewriters and office machines in the basement of a house they rented in Gorst, and WHEREAS, eventually, Bob moved the repair part of his business into downtown Bremerton where he has operated for almost 70 years and is still the owner /operator of Bremerton Office Machine Company on Fourth Street in Downtown Bremerton , and WHEREAS, Bob's allegiance to our City wasn't just in business, but also in the arts In 1950, Mr Montgomery Bob's relationship began with Bremerton Community Theatre continues steadily to this day He has acted and/or been part of production and crew in over 145 shows from 1950 to 2012 Today, Robert Montgomery is an archivist and active Board Member Emeritus at BCT, and WHEREAS, Bob is always at the ready with memories, anecdotes, and stones from our past, for his past is our past and it is our duty to give that gift to future generations by listening, learning, and sharing the things that make Bob Montgomery so important to our lives He is a treasure to us as an historian, an example to us as a citizen, and a friend to us as a neighbor NOW, THEREFORE, I, Patty Lent, Mayor of the City of Bremerton in recognition of his lifetime service to City and Country, do hereby proclaim March 12, 2014, as Robert "Bob" Montgomery Day Signed this 5 day of March 2014 Mayor Patty Lent 1 , 9 t � r it Yr � ! w gjjpj "I Olt 9� v 1 - P 7 , t r 1 t 1 , 1 - r 1 _ � 1 l ug ° ( i 1 y � , , t� Prodamation WHEREAS, March is American Red Cross Month - a special time to recognize and thank our Everyday Heroes — those who reach out to help their neighbors when they are in need, and WHEREAS, American Red Cross heroes are on the front lines every day They volunteer their time, give blood, take life- saving courses or provide financial donations to help those in need,and WHEREAS, we would like to remember our heroes here in Bremerton and throughout the West Sound who give to help people in need They work tirelessly to help in time of disaster, when someone needs life- saving blood, or the comfort of a helping hand They provide round - the -clock support to members of the military, veterans and their families, and teach lifesaving classes in CPR, aquatics safety and first aid, and WHEREAS, across the country and around the world, the American Red Cross responded to hurricanes, tornadoes, floods and wildfires, the tragedy at the Boston Marathon, and typhoon Haiyan in the Philippines, and WHEREAS, when an inured service member ended up in a hospital far from home, the American Red Cross offered comfort When a lifeguard dumped in to save a drowning child or someone stepped up to help a heart attack victim, the American Red Cross was there, and WHEREAS, we dedicate the month of March to all those who support the American Red Cross mission to prevent and alleviate human suffering in the face of emergencies Our community depends on the American Red Cross, which relies on donations of time, money and blood to fulfill its humanitarian mission NOW, THEREFORE, I, Patty Lent, Mayor of the City of Bremerton, Washington do hereby proclaim March 2014 as American Red Cross Month I encourage all Americans to support this organization and its noble humanitarian mission Signed this 5 day of March 2014 Mayor Patty Lent 44 S wy � r b a e � F � LU ^ 9 e } (Front - L -R) Ashley Overman, Disaster Services AmenCorps volunteer, Pablo Lozano, West Sound Leadership Council member, Mayor Lent, West Sound Director Karen McKay Bevers, volunteer Bob Dollar, volunteer Paul Bolduc, and volunteer Gary Bolen Greetings Bremerton City Council Members Thank you again for giving me an opportunity to tell a bit of the Red Cross story at your meeting last night, and for humoring us with a group photo We greatly appreciate the support from the City of Bremerton It is wonderful to have an opportunity to recognize some of our dedicated volunteers and the work they do year - round fulfilling the mission of American Red Cross I've attached the photos from last night, and our 2013 response stats are listed below in case you were interested in having those numbers Thanks again Kind regards, Karen In 2013, the Red Cross • Responded to 31 incidents - mostly house fires O 17 of those incidents were in Bremerton and included 2 apartment fires • Served 56 households for a total of 137 individuals 41 households in Bremerton 45 of those served were children Karen McKay Bevers I American Red Cross West Sound Director American 811 Pacific Ave I Bremerton, WA 98337 Red Cross (p) 360 - 478 -7681 1 (f) 360- 792 -0498 1 Karen mckaybevers @redcross org _ y At P YTT, j 11 TAJ 4SpICE OF KITSAP Co � Ty f F fi waSM pr A r p / IL ft •i•0•• •••••• 'of AM J 1 � � " � � Join us at 5:00 pm on Friday, March 7 for 1 Vat ► " �► a ribbon cutting ceremony to celebrate the grand opening of our new thrift shop! 301 Pacific Avenue, Bremerton On the corner of Pacific & Burwell r Vrodamatton WHEREAS, on March 22, 1972, President Richard Nixon signed into law a measure that amended the Older Americans Act of 1965 and established a national nutrition program for seniors 60 years and older, and WHEREAS, the Meals On Wheels Association of America established the National March for Meals Campaign in March 2002 to recognize the historic month, the importance of Older Americans Act Senior Nutrition Programs and raise awareness about senior hunger in America, and WHEREAS, the 2014 observance of the March for Meals campaign provides an opportunity to support Senior Nutrition Programs that deliver vital and critical services by donating, volunteering and raising awareness about senior hunger, and WHEREAS, Meals on Wheels Kitsap has served the City of Bremerton and other communities throughout Kitsap County admirably for more than 40 years providing nutritious meals to seniors in the City of Bremerton and throughout Kitsap County helping them to avoid premature or unnecessary hospitalization and institutionalization, and WHEREAS, Meals on Wheels Kitsap provides a powerful socialization opportunity for their senior clients to help combat loneliness and isolation, and WHEREAS, volunteers are the backbone of the Meals on Wheels Kitsap program as they provide hot, well - balanced meals and social interaction to seniors at community dining meal sites and deliver nutritious meals and friendly smiles to homebound elderly and individuals with disabilities, and WHEREAS, Meals on Wheels Kitsap deserves recognition for the contributions they have made and will continue to make to senior citizens throughout the City of Bremerton, NOW THEREFORE, I, Patty Lent, Mayor of the City of Bremerton, do hereby proclaim March 16 -22, 2014 as Community Champions for Meals on Wheels Week in the City of Bremerton I urge every citizen to take time this week to honor Meals on Wheels Kitsap, the seniors they serve and the volunteers who care for them Our recognition of and involvement in the 2014 March for Meals campaign can enrich our entire community and help end senior hunger in America —so no senior goes hungry® Signed this 5 day of March 2014 Mayor Patty Lent irx:: X500 1 s►�o N00930VJ NO S1N3A3 NOJ- 13W38S MO1 l.. laa' alelsaleaa ia4sOzings a0 i > •'' EO?L' 4Lb 09E lld0 03N13HOW »03 iSNI038!3GV.HV& Ikv SJi�lalt/d;1S�3H1,... , WVOV l , biAb /,d`�'8'Hl -IS V ,. 4 , �. s J_ INVQd`d lb' NI NJIS INd6 - � ,' $1NEVO 3 (1Q3H�S � z � : ;3GV8. d13 N1 H08 M ` r uvb ! !S>iMb'Hv3S anO k at-3M � . !NVW'H1Z L 3H1 JO H3HM •awoolam aae sa5iiq pue suo6em `s eo `sBop •Juana unj sigl loped aq of pa6einooue aae saagwaw 4unwwoo Weaed eqj aol sn uior V WiZ 'H-L9 L HOHVN `ixvci u nxvs ACIVHVd ` l ivnNNd aHCZ Ni S.MSdHd NOIIVIOOSSV N0183WRIS NMO1NM00 3Hl AGENDA BILL 15t4 CITY OF BREMERTON CITY COUNCIL SUBJECT Claims & Check Register Study Session Date COUNCIL MEETING Date March 5, 2014 Department Financial Services Presenter Shannon Conn Phone 473 -5323 SUMMARY Approval of the following checks and electronic fund transfers 1) Check #'s 357190 through 357368 and EFT's 13619 through 13657 in the amount of $2,200,84186 2) Regular Payroll for the pay period ending February 15, 2014 in the amount of $686,30136 3) Regular Payroll for the pay period ending February 28, 2014 in the amount of $671,343 58 4) Retiree Payroll for the pay period ending February 28, 2014 in the amount of $55,220 99 ATTACHMENTS FISCAL IMPACTS (Include Budgeted Amount) STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation STUDY SESSION ACTION ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve consent agenda as presented COUNCIL ACTION. JApprove ❑ Deny ❑ Table ❑ Continue ❑ No Action Forth Updated 01/25/13 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT Minutes of Meeting — Study Session Date N/A February 19, 2014 COUNCIL MEETING Date March 5, 2014 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 ® No Presentation ❑ Full Presentation STUDY SESSION ACTION ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve the Consent Agenda as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, February 19, 2014 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, February 19, 2014, at 5 00 PM in Council Conference Room 603 of the NORM DICKS GOVERNMENT CENTER, 345 6 th Street, Bremerton, Washington, with Council President Greg Wheeler presiding Council Members present were Eric Younger, Roy Runyon, Dino Davis, Jerry McDonald, Leslie Daugs, and Mike Sullivan Also present were City Attorney Roger Lubovich, City Clerk Shannon Conn, and Legislative Assistant Lori Smith A COUNCIL BRIEFING was held to discuss General Council Business at 5 00 PM in the Council Conference Room At 5 30 PM the meeting moved to the Meeting Chambers The Pledge of Allegiance was led by Council Member Mike Sullivan followed by the invocation provided by Reverend Jeffery Flood of Mount Zion Missionary Baptist Church MAYOR'S REPORT — Mayor Patty Lent • Proclaimed Sunday, February 23, 2014 as "Rotary's Birthday', and on behalf of all Rotary members, presented copies of the proclamation to Kyle Kincaid President of the Downtown Bremerton Rotary Club and Gena Wales President of the Rotary Club of East Bremerton, • Brought forward Jack Sipila of Puget Sound Energy who presented the City of Bremerton a Business Energy Management Rebate in the amount of $314,956 for energy saving improvements made at the Wastewater Treatment Plant, • Also brought forward Mike Walton who presented a $148,635 53 check to the City of Bremerton as the first payment toward the $420,000 commitment from the Kitsap Public Facilities District (KPFD) for the Kitsap Conference Harborside Expansion Project, • Proclaimed March 7, 2014 as "Women's History Day', and presented the proclamation to Kathleen Cahall who invited the public to the "Women's Work Breaking the Mold' Exhibit Opening at the Kitsap County Historical Museum on Friday, March 7 from 5 00 to 8 00 PM, • Announced that the Collective Visions Gallery (CVG) will be hosting a free panel discussion on "Art and The Health Community' on Thursday, February 20 from 7 00 to 9 00 PM at the corner of 4 th Street & Pacific Avenue, • Mentioned that the Amy Burnett Gallery would be donating an 8 -foot salmon sculpture named "The Ancient One" to the City of Bremerton for placement on 4 th Street, • Proclaimed the March 2014 as "Brain Injury Awareness Month", and presented the proclamation to Suzanne Griffin • Displayed current photos of the Kitsap Conference Center 3` Floor Expansion Project, and announced that a Ribbon Cutting has been tentatively scheduled in March, and • Encouraged citizens to use the Online Public Comment Form now on the City's website to provide their comments on the "Bremerton Parks, Recreation & Open Space Plan Update" BPD BRIEFING Police Chief Steve Strachan provided a monthly update PUBLIC RECOGNITION Dawn Nelson notified the public that the City of Bremerton would be providing Parking Ticket Amnesty from March 3 to 31, 2014 Robert Parker thanked Mayor Lent for her assistance in getting him appointed as a County -wide representative to the Mental Health /Chemical Dependency Tax Citizens Advisory Committee Cynthia Large of Uptown Auto Body on Pacific Avenue submitted a letter expressing her concerns about the negative impact on her business due to the road closures from the Pacific Avenue Project City Council Reg Mtg Minutes Wednesday, February 19, 2014 Page 2 of 3 Chal Martin thanked Ms Large for the patience she has shown to the City and said that due to conversations with her, he will work to make some adjustments to the upcoming paving schedule CONSENT AGENDA 6A — Claims & Check Register Check Numbers 356976 through 357189, and EFT -13580 through EFT -13619 in the amount of $2,142,431 94, Regular Payroll for the pay period ending January 31, 2014 in the amount of $695,612 17 613 — Minutes of Planning Session — February 1, 2014 6C — Minutes of Meeting — February 5, 2014 6D — Minutes of Study Session — February 12, 2014 6E— Appointment of Jeremiah Wiley to the Parks & Recreation Commission 6F — Purchase of (for replacement) three (3) 2014 Ford Interceptor Utility Vehicles from Columbia Ford of Longview, WA for the Police Department (Patrol Division) 6G — Purchase of (for replacement) four (4) 2014 Ford Interceptor Vehicles from Columbia Ford of Longview, WA for the Police Department (Detectives Division) 6H — Purchase of (for replacement) two (2) 2014 Pickup Trucks, one from Legacy Ford of Pasco, WA, and one from Bud Clary Chrysler Dodge of Longview, WA for the Parks Department 61— 2014 Kitsap Physicians Service (KPS) Premium Rates and Underwriting Criteria 6J — Professional Seances Agreement with Parametrix for the Design of the Marine Drive Low Impact Development (LID) Stormwater Retrofit Project John Larson and Deidre McKeel provided comments in support of Jeremiah Wiley's appointment to the Parks & Recreation Commission 6 16 05 PM Motion was made by Sullivan and seconded by Davis, Questions and comments were provided by Runyon and Daugs, with a response provided by Charlotte Be/more of Human Resources 06 17 38 M /S /C /U (Sullivan /Davis) Move to approve the CONSENT AGENDA as presented GENERAL BUSINESS — There were no General Business items tonight PUBLIC HEARING 8A — PUBLIC HEARING TO APPROVE ORDINANCE NO 5240 ESTABLISHING A PLANNED ACTION FOR THE GORST URBAN GROWTH AREA (UGA) Allison Daniels Community Development, explained that the action before the City Council is to conduct a public hearing and consider public testimony on a Planned Action Ordinance for the Gorst Urban Growth Area According to SEPA, a "Planned Action" is a designation for a project or elements of a project that shifts environmental review from the time a permit application is made to an earlier phase in the process The planned action analysis applies to the entire study area of the Gorst Urban Growth Area and addresses potential impacts and mitigating measures as a result of the Environmental Impact Statement analysis This action will support the Gorst Subarea Plan which was recently adopted by the City Council in December 2013 under Ordinance No 5237 President Wheeler opened the public hearing With no comments received, President Wheeler closed the public hearing to the public, and opened discussion to the City Council City Council Reg Mtg Minutes Wednesday, February 19, 2014 Page 3 of 3 06 29 35 Motion to pass Ordinance No 5240 was made by Runyon, and seconded by Daugs, Questions and comments were provided by Runyon and McDonald, with responses provided by Ms Daniels and Lisa Grueter of Burke Consulting 06 31 26 M /S /C /U (Runyon /Daugs) Move to pass Ordinance No 5240 establishing a Planned Action for the Gorst Urban Growth Area COUNCIL MEMBER REPORTS Roy Runyon announced that volunteers are needed on Saturday, February 22 at 10 00 AM for a clean- up of the right -of -way along 19 Street near the future Lilian A & James Walker Park, asked that citizens complete the survey on the 1/10 of 1 % sales tax for mental health and explained that the survey is now available on the City's website Dino Davis thanked the Bremerton Police Department for providing an emphasis patrol recently around local elementary schools Jerry McDonald notified the community that the Kitsap County Hospice Thrift Shop was now open, but an official Open House event was planned for the First Friday Artwalk on March 7, and announced the 23 Annual St Patrick's Day Parade would be held downtown on Saturday, March 15 beginning at 10 00 AM which will also include a March for the 12 Man Leslie Daugs announced the West Sound Agntounsm Workshop would be held on Saturday, February 22 from 8 30 AM to 4 00 PM at the Bremerton Teen Center, encouraged citizens to apply for a vacancy on the City's Audit Committee through a Ink on the City's website, thanked Wayne Olsen for his years of service on the Audit Committee, encouraged support of the Girls Scouts by buying cookies to help send them to camp, and encouraged citizens to express their comments on the Parks Comprehensive Plan through the City's website Greg Wheeler was pleased to attend and be a guest speaker at the Washington State African American Achievement Awards Dinner over the weekend, and announced that immediately following the adjournment of the Council Meeting, the Council would convene for an Exempt Closed Session to receive an "Update on Labor Negotiations" per RCW 42 30 140 (4)(b), and that no action was anticipated With no further business, President Wheeler adjourned the Council Meeting at 6 55 PM Prep ed and Submitted by L RI SMITH Attest Legislative Assistant SHANNON CORIN, City Clerk GREG WHEELER, City Council President GW SC Is cg AGENDA BILL 6Co CITY OF BREMERTON CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeteeeeeaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SUBJECT Minutes of Study Session — Study Session Date N/A February 26, 2014 COUNCIL MEETING Date March 5, 2014 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 ® No Presentation ❑ Full Presentation STUDY SESSION ACTION ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve the Consent Agenda as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES Wednesday, February 26, 2014 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, February 26, 2014, at 5 00 PM, with Council President Greg Wheeler presiding Council Members present were Roy Runyon, Dino Davis, Jerry McDonald, Leslie Daugs, and Mike Sullivan Council Member Eric Younger was absent Lori Smith, Legislative Assistant, 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 March 5, 2014 Council Meeting Agenda, or as indicated A NO PRESENTATION PLANNED - The following items are budgeted items or have been reviewed by the appropriate Council Committee 1 Resolution to establish April 2, 2014 as a public hearing date to vacate a portion of the Adele Avenue right -of -way at the Bertha Avenue intersection (Consent Agenda) 2 Sole Source Purchase for a 2014 Ford F -550 Maintenance Truck from Cobalt Truck Equipment for the Wastewater Plant and Sewer Pump Stations (Consent Agenda) 3 Contract with SMS- Supenor Maintenance Solutions for Arterial Street Sidewalk Landscape Maintenance (Consent Agenda) 4 Contract with Action Services Corporation for Hot Applied Street Traffic Markings (Consent Agenda) 5 Resolution to authorize investment of City monies in the Local Government Investment Pool (Consent Agenda) 6 Staffing Adjustments to the Financial Services Department (Consent Agenda) 7 Sub - concession and Future Assignment of the Olympic Soccer & Sports Center (OSSC) Concession Agreement to Keystone Financial Management, Inc (2 Public Hearings) B FULL PRESENTATIONS & BRIEFINGS 8 Ordinance to revoke the Wheaton - Riddell District Center Sub Area Plan (Public Hearing) GENERAL COUNCIL BUSINESS • Audit Committee Briefing (2113114 Meeting) — Leslie Daugs, Chair • Finance & Investment Committee Briefing (2125114 Meeting) — Roy Runyon, Chair • Other General Council Business (As necessary ) With no further business, President Wheeler adjourned the Council Study Session at 6 25 PM S FMM) RI SMITH Legislative Assistant City Council Special Meeting Minutes Wednesday, February 26, 2014 Page 2 of 2 Attest SHANNON CORK City Clerk GREG WHEELER, City Council President GW SC Is cg AGENDA BILL CITY OF BREMERTON 5D CITY COUNCIL ......................................................... ............................... SUBJECT Resolution No 3213 to Study Session Date February 26, 2014 establish April 2, 2014 as a hearing Date to COUNCIL MEETING Date March 5, 2014 vacate a portion of Adele Avenue at the Department Public Works & Utilities Bertha Avenue intersection Presenter Chal Martin Phone 360 473 5758 SUMMARY The adjacent property owner has petitioned the City to vacate a portion of Adele Avenue at the Bertha Avenue intersection which lies directly adjacent to their property This portion of property is not needed for roadway purposes ATTACHMENTS 1 Resolution No 3213, 2 Engineering Staff Report, 3 Exhibit Drawing FISCAL IMPACTS (Include Budgeted Amount) None STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation STUDY SESSION ACTION ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to pass Resolution No 3213 to establish April 2, 2014 as a Hearing Date to vacate a portion of the right of way of Adele Avenue COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 RESOLUTION NO. 3213 A RESOLUTION of the City Council of the City of Bremerton, Washington, establishing a hearing date for the proposed vacation of a portion of Adele Avenue at the Bertha Avenue intersection WHEREAS, the adjacent property owner has initiated the vacation of a portion of Adele Avenue THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS SECTION I A public hearing will be held on April 2, 2014 at 5 30 p m or later in the City Council Chambers at the Norm Dicks Government Center, First Floor, 345 Sixth Street, Bremerton, Washington, to take public comment or consider written objections to the vacation SECTION 2 Severabdity 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 , 2014 GREG WHEELER, Council President APPROVED AS TO FORM ATTEST ROGER A LUBOVICH, City Attorney SHANNON CORIN, City Clerk 1 Adele Avenue Partial Vacation — Resolution STREET VACATION FOR PORTION OF ADELE AVENUE AT BERTHA AVENUE ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE April 2, 2014 PREPARED BY Gunnar Fridnksson SUMMARY A Applicant Mahay, L L C 109 Olding Road, Suite 200 Bremerton, WA 98312 Location Portion of Adele Avenue at the Bertha Avenue intersection BACKGROUND The adjacent property owner has petitioned the City to have a portion of the right of way at this intersection vacated These portions of property where purchased by the Washington State Department of Highways in 1942 and 1947, so that they are owned in fee title by the City making them Class 1 right of way RIGHT -OF -WAY CONDITIONS EXISTING ROADWAY NEW ROADWAY • Functional Classification Street N/A • R -O -W Width Vanes N/A • R -O -W Areas N/A N/A • Pavement Width 24 feet N/A • Surface Type Asphalt N/A • Curb and Gutter No N/A • Sidewalks No N/A 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 well better serve the public good Staff Position This portion of the right of way is not currently being utilized for the roadway, nor is it anticipated to be needed February 2014 Portion of Adele Avenue Vacation Page 1 of 3 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 this area 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 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 Adele and Bertha Avenues are classified as local streets 6 Whether objections to the proposed vacation are made by owners of private property abutting the same Staff Position The applicant for the vacation 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 An easement for CenturyLink and City of Bremerton will be retained for existing utilities SUFFICIENCY OF SIGNATURES The applicant is the sole adjacent property owner COMPENSATION February 2014 Portion of Adele Avenue Vacation Page 2 of 3 As this is Class I right of way, compensation is due The Kitsap County Assessor has a value of $9 70 /square foot for 2014 taxes on the adjacent property Area to be vacated is 5,914 square feet for a total cost of $57,365 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 low MIR a _ r f L NYP� r .a 0 A �� �� , Looking SE'ly from north side of Bertha Avenue over vacation area February 2014 Portion of Adele Avenue Vacation Page 3 of 3 �1.�tig o k 4 o. d9e o4 ,� L =47 39 I / -Z2 -ZD(�- E R =25 00 , A 10836 15,, Vacated r — — Area to o be (5914 sq. ft �, c'G 45 97' p N 89'21 '38" W lk lk ON ,o of CL i � IE�Z ARE � I ____ � N8842'10 "W � I � - -- - - - - --- - - - - -- Radial � I � � w Z � O�S '( p P0� �P P�63 I NP 2 I SCALE 1 " =30' �0 � EXHIBIT MAP ow" BY CHK e Y AES BJM SEO FO CONSULTANTS INC MAHAY LLC DAM JOB No a a ecz Lao su MALF, +. aa23 aeo -GM 1121114 5865 AES CONSULTANTS, INC PROFESSIONAL LAND SURVEYORS PO BOX 930 - 3472 N W LOWELL "OLD TOWNS" - SILVERDALE, WA 98383 - 360 -692. AM - FAX 360 -692 8927 PORTION TO BE VACATED THAT PORTION OF LOTS 7 THROUGH 1 l AND LOT 33, BLOCK B, OYSTER BAY ADDITION TO PORT ORCHARD NAVY YARD, AS PER PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 63, RECORDS OF KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS BEGINNING AT A POINT ON THE SOUTHEASTERLY RIGHT -OF -WAY LINE OF KITSAP WAY BEING THE INTERSECTION OF THE SOUTH LINE OF SAID LOT 33 WITH A LINE LYING PARALLEL WITH AND 150 00 FEET SOUTHEASTERLY OF THE CENTERLINE OF KITSAP WAY, THENCE NORTH 47 0 52'58" EAST ALONG SAID RIGHT -OF -WAY LINE 65 25 FEET TO THE POINT OF TANGENCY OF A 25 00 FOOT RADIUS CURVE CONCAVE TO THE SOUTH, THENCE ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 108 FOR AN ARC DISTANCE OF 47 39 FEET TO THE POINT OF TANGENCY OF A 300 00 FOOT RADIUS CURVE CONCAVE TO THE WEST, THENCE ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 24 0 48'37" FOR AN ARC DISTANCE OF 129 91 FEET TO THE SOUTHEAST CORNER OF SAID LOT 11, THENCE NORTH 36 0 24'43" WEST 112 80 FEET TO A POINT ON THE SOUTH LINE OF SAID LOT 8 WHICH LIES 69 00 FEET WEST OF THE SOUTHEAST CORNER THEREOF, THENCE NORTH 89 0 21'38" WEST ALONG SAID SOUTH LINE AND THE SOUTH LINE OF SAID LOT 33 A DISTANCE OF 45 97 FEET TO THE POINT OF BEGINNING 1-22-2014 se0 ogc - ' - o o e Jeoo °� ( v P e O a a e e 20795 �Qd���►�� J Q 00•° if 00® °O�QO °° AGENDA BILL CITY OF BREMERTON CITY COUNCIL ■■ rreesaeeerreeeeeereeeeeeerereeeeeeeerreeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeereeeeereeeee SUBJECT Sole source purchase of a new Study Session Date February 26, 2014 maintenance truck for the Wastewater Plant COUNCIL MEETING Date March 5, 2014 and Sewer Pump Stations Department PW &U/WWT Presenter Pat Coxon Phone 4735448 SUMMARY Wastewater currently has budgeted $50,000 to replace an existing 1986 1 ton truck Upon review of our needs with the maintenance staff, it was determined that we have a need for a second maintenance repair truck This will enhance our ability to respond to emergent work at the thirty -seven pump stations, and both treatment plants Attached is proposal for a sole source purchase of a turn -key maintenance truck from Cobalt Truck Equipment in the amount of $131,950 (including tax & delivery) The truck is a 2014 Ford F -550, which is equipped with service boxes, hydraulic crane, air compressor, welder, generator and an auxiliary hydraulic oil tank ATTACHMENTS 1) Truck Purchase summary, 2) Cobalt Truck Proposal, 3) Sole Source Memo, 4) Pictures FISCAL IMPACTS (Include Budgeted Amount) This truck purchase is budgeted through the WW Capital Budget of $50,000, and Wastewater Maintenance Budget of $156,179 The total purchase price for the maintenance truck is $131,950 STUDY SESSION AGENDA © No Presentation ❑ Full Presentation STUDY SESSION ACTION © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve the sole source purchase of a maintenance truck from Cobalt Truck Equipment in the amount of $131,950 (including tax and delivery), authorize the transfer of $81,950 from Supplies and Services to Capital, and authorize the Mayor to finalize and execute the purchase with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 201 4 WWT Truck Purchase WWT has a $50,000 budget to replace truck 0396 Upon review with our staff of current/future needs, it has been determined that we need a second maintenance repair truck The current budgeted amount is not adequate enough to meet the required purchase price Listed below are my replacement options, my proposal and recommended method for meeting the budget deficit 1 The current 2014 truck budget of $50,000 will only purchase the truck cab & chassis The truck needs to be outfitted with a service box and crane Per Chuck Ernst, the estimated cost for the service box and crane is $35K - $40K, plus staff time for wiring and installation 2 Purchase of an already outfitted truck, with a larger hydraulic crane, air compressor, welder, generator and hydraulic oil tank is $131,950 The only work that needs to be completed by staff is the addition of amber strobe, radio and door stickers The truck warranty starts when it is put in service I propose to go with Option #2 The remaining budget deficit would be allocated from the existing WWT Maint Equipment R &M budget (535 5032 54810) of $156,179 This would leave a remaining budget of $74,229, which will enable us to meet our required 2014 repair needs 4 a+ www.cobalttruckcom COBALT TRUCK EQUIPMENT Page 1 of 3 CUSTOMER City of Bremerton Quote Number 1250551A CONTACT Charles Ernst Quote Date 1/31/2014 ADDRESS 100 Oyster Bay Ave N Quote valid until 3/02/2014 Bremerton WA 98312 PHONE (360 )473 -5621 Salesperson Tim Ippolito FAX (360)473 -5881 Quote Prepared By Tim Ippolito Make Ford I Model F550 Year 2014 GVWR' 19500 Sin leMual Dual Cab to Axle 84 1 Cab to Tandem Wheelbase Trans VIN QUANTITY DESCRIPTION PRICE EACH AMOUNT 1 2014 Ford 550 4x4 IMT Dominator 1 $114,50000 $114,50000 - Work ready field service truck - Stock # NS01780 - See attached spec sheet - VIN 1FDUFSHT7EEA27469 1 Miller Wildcat 200 welder installed as follows $4,82500 $4,82500 - 200 amp @ 20% duty cycle, 150 amp @ 100% duty cycle - 6,500 watts peak auxiliary power output, 5,500 watts continuous - Subaru 14 hp single cylinder 4 -cycle gas engine, 3 -year warranty - Electric and recoil start - 7 gallon fuel tank - 35 -1/2" long x 20" wide x 22" high, 345 lbs - Mounted on street side compartment top 1 Air distribution block with (3) outlet ports mounted on rear of curb side $20000 $20000 compartment, plumbed before filter, luber, regulator for unregulated air 1 Fiberglass access ladder installed $8000 $8000 1 Cargo area divider gate (lift -out) $34000 $34000 - 1/8" x 1 -1/2" square tubing frame - Flattened expanded metal screen - Slide channels bolted on to cargo area sides - Located m cargo area 18" behind hydrauhc tank - Powder coated black 1 Laptop computer stand with adjustable mounting bracket $12500 $12500 - Mounting system for Ford 2013 F450 /550 - Mounted on passenger side floor - Adjustable telescoping stand - Rotating swivel arms to allow positioning for use in driver or passenger seat - Universal laptop mounting platform 345 W Karcher Road 1607 Industrial Road 2033 N E Columbia Blvd 4620 E Trent Avenue Nampa ID 83687 Las Vegas NV 89102 Portland OR 97211 Spokane WA 99212 Phone 800 733 0342 Phone 888 258 9812 Phone 877 526 2258 Phone 800 572 4369 Fax 208 887 7794 Fax 702 385 9936 Fax 503 283 2969 Fax 509 535 -4294 d d`d�` �d`f $ Y L, !�d` X d d11v� d � � ° d'd�d r` www.cobalttruck.com COBALT TRUCK EQUIPMENT Page 2 3 QUANTITY DESCRIPTION PRICE EACH AMOUNT - 360 degree swivel - 85 degree tilt 1 Buzzer/light indicator for radio remote transmitter installed as follows $40000 $40000 - Buzzer/light will be activated whenever radio remote transmitter is not plugged into socket in crane compartment 2 11 Ov GFI electric outlet on rear of body wired to generator with vertical weather $46000 $92000 cover 1 Ecco 5813A 6" strobe light installed as follows $40000 $40000 - Weld mounting plate to cab guard - Wire to existing up -fitter switch in cab 1 7 -way trailer socket, RV style with flat blades $12500 $12500 1 Igloo 5 gallon water cooler with mounting bracket installed as follows $30000 $30000 - Portable Plastic Water Cooler - 14" diameter x 20 -1/2" high - Yellow with red lid, includes lid- keeper cord - Storage rack with webbed strap with buckle 1 Wilton 5 -1/2" Tradesman vise installed on rear vise plate $68500 $68500 2 Whelen grille mounted amber strobe light $31500 $63000 - Wire to factory up -fitter switch with beacon 2 Whelen red strobes mounted in rear of body $31500 $63000 - Wire to factory up -fitter switch with beacon 1 Curb side compartment top block storage w /rubber pad $42500 $42500 - Fits DISII or D2SII 11' RRF crane bodies 1 Paint compartment tops and interiors after welder and block storage installation $60000 $60000 1 Delivery $1,19000 $1,19000 Quote Total $126,37500 Municipal $5,00800 Discount Total Due $121,36700 The following o pitions may be added QUANTITY IDESCRIPTION I PRICE EACHI AMOUNT 345 W Karcher Road 1607 Industrial Road 2033 N E Columbia Blvd 4620 E Trent Avenue Nampa ID 83687 Las Vegas NV 89102 Portland OR 97211 Spokane WA 99212 Phone 800 733 0342 Phone 888 258 9812 Phone 877 526 2258 Phone 800 572 4369 Fax 208 887 7794 Fax 702 385 9936 Fax 503 283 2969 Fax 509 535 4294 r A J4✓ ' 4 1�P F www.cobalttruckcom COBALT TRUCK EQUIPMENT Page 3 of 3 Customer must fill out the information below before the order can be processed Accepted by Date P O number ♦ Quoted price does not include any applicable F E T , sales tax, and/or delivery charges ♦ Quoted price does not include any unforeseen obstructions or modifications ♦ Quotation valid until above stated expiration date ♦ Terms are due upon receipt unless prior credit arrangements are made at the time of order ♦ 20% down payment required with order ♦ Cobalt Truck equipment assumes no responsibility for the possible damage that may anse from the installation of cranes on Knapheide or Harbor service bodies and shall not be held liable for damages due to product failure caused by the installation of these products No oral or written advisement given by Cobalt Truck Equipment, Suppliers or other third parties shall create any warranty or change this disclaimer of liability This product is provided on a " as is " basis without warranties ♦ Quote pending final weight distribution analysis based on chassis, equipment and options "All quotations are contingent upon compliance with all of the export laws and regulations of the United States If any such law or regulation cannot be complied with, or if this equipment is prohibited from being exported at any time by the United States Government, this quotation and/or subsequent order(s) received or accepted will become null and void " 345 W Karcher Road 1607 Industrial Road 2033 N E Columbia Blvd 4620 E Trent Avenue Nampa ID 83687 Las Vegas NV 89102 Portland OR 97211 Spokane WA 99212 Phone 800 733 0342 Phone 888 258 9812 Phone 877 526 2258 Phone 800 572 4369 Fax 208 887 7794 Fax 702 385 -9936 Fax 503 283 2969 Fax 509 535 -4294 ✓ f f I l COBALT TRUCK EQUIPMENT 4620 E Trent Ave Spokane, WA 99212 Phone (509) 534 -0446 / Fax 509 -535 -4294 / TO Free 800 - 572 -4369 / www cobalttruck com Cobalt Truck Equipment References Avista Utilities, Greg Loew (509) 495 -2072 Greg Loew@avistacorp com Chelan County P U D Mike Schrader (509) 663 -8121 mtchaelsna,chelanpud org Douglas County P W Del Mires (509) 745 -8523 dmires@co doualas wa us City of West Richland, Jess Latham (509) 967 -3431 lessgwestnchland org Grant County P U D Mike Phelps (509) 754 -6747 mphelpskagpud org Douglas County P U D Burt Duncan (509) 884 -7191 rduncanndcpud org Spokane County P W Brian Hopp (509) 477 -7735 bhopp a@spokanecounty _arg WA Closure Hanford Greg Nilson (509) 376 -7730 Nampa, ID / Spokane, WA / Portland, OR / Las Vegas, NV i Public Works and Utilities Department 100 Oyster Bay Ave N . Bremerton, WA 98312 • (360) 473 -5315 • FAX (360) 473-5360 MEMORANDUM DATE: February 18, 2014 TO City Council FROM: Chal Martin, Public Works Director I -I J SUBJECT- Sole Source Determination ------------------------------------------------ --------------------- The City of Bremerton Wastewater Treatment Plant Division proposes to purchase a new maintenance truck for the wastewater treatment plant and sewer pump Stations This purchase will replace a 19861 ton utility truck Pursuant to BMC 2 76 090, the request for bids requirement "may be waived by written determination by the Director that either the materials, supplies, equipment or services are clearly limited to a single source of supply, or that materials, supplies, equipment or services are subject to special market conditions, involve special facilities or services, or that a bid would not be practical or in the City's best interests under the circumstances, in which instances the purchase price may be best established by direct negotiation " This sole source purchase from Cobalt Truck Equipment provides the specific modifications necessary for use as a sewer maintenance vehicle. Purchasing the truck already outfitted with service boxes and a hydraulic crane reduces the amount of staff labor required to purchase and install these items separately, in addition, purchase from this source also enables the City to get the vehicle into service months sooner than would otherwise be the case When all of the above issues are considered, and after taking in to account the cost of purchasing the vehicle, service boxes and supplemental equipment separately, it is my determination that sole source negotiated -price procurement of the 2014 F -550 Service Truck from Cobalt Truck Equipment is in the best interest of the City. , Il J � f r r` r OFF. z 1 1 — �� . 1 1 1 1 1 1 1 1 1 s• 1 I 1 IC � gg t Mail •iv 1 ) J • .;,q � r .i ii f tai 1 � 7 1 � (� �� /� � V\ ' � l' /J /' ] ��i �� � �`� 4 �� tf Il � ri /i � � 1 �� �``•: / ', R � h � /1 �'� � �,� � / v� �` � � � F /'/ � � t� � � �� f� E li � � �� � �� r � / y � 1 j1 ) fi I/ �\ � �1 S � C � f /l f %r 1 r � ��` S � ti b f � `� F ! % f � �� 1 q !� �`! jl fi �� i /// � i k ` � a � I i J f t t [ � 1 � �. � __�".... ---- w � , .0 ®� � �® � r > --..� � � � -� � _ � f � � � � � � _ .-,,. r / 6 � �� �� dJ �Oli�� ®! ! �� �� O' AGENDA BILL S)C CITY OF BREMERTON CITY COUNCIL ■■ erreeeeeeeeeeeeeeeeeeeeeeeeeeereeeeereeeeeeeeeaeeeeeeeeeeereeeeeeeeeeeeeeeeereeeeeeee SUBJECT Contract with SMS — Superior Study Session Date February 26, 2014 Maintenance Solutions for Arterial Street COUNCIL MEETING Date March 5, 2014 Sidewalk Landscape Maintenance Department PW &U Presenter Chal Martin Phone 473 -5758 SUMMARY This small works roster project was provided to 106 qualified contractors listed on the MRSC small works site Three bids were received The low bidder was SMS — Supenor Maintenance Solutions with a bid of $43,882 50 The contract will focus on applying herbicide and removing weeds and vegetation from the City's arterial street sidewalks At the City's option and with the concurrence of the contractor, this contract may be extended into 2015 This is a pilot project for the Public Works Department ATTACHMENTS 1) Contract, 2) Bid Tabulation FISCAL IMPACTS (Include Budgeted Amount) Funding for this contract will come from Fund 102 (Streets), line item 542 6142, Sidewalks The bid amount is $43,882 50 STUDY SESSION AGENDA 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION 0 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve a contract with SMS — Superior Maintenance Solutions for Arterial Street Sidewalk Landscape Maintenance in the amount of $43,882 50, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 PUBLIC WORDS AGREEMENT For Arterial Street Sidewalk Landscape Maintenance THIS AGREEMENT, is entered into between the City of Bremerton, a Washington Municipal Corporation ( "City "), and SMS — Superior Maintenance Solutions, LLC ( "Contractor "), whose mailing address is 19410 Highway 99, A- #136, Lynnwood, WA 98036 The parties agree as follows 1. CONTRACTOR SERVICES The Contractor shall perform the following services for the City Arterial Street Sidewalk Landscape Maintenance in accordance with Exhibit A, Scope of Services 2. TIME OF COMPLETION. Contractor shall complete the work by October 30, 2014 Should the Public Works and Utilities Director determine the Public Work services outlined in this contract were satisfactorily completed in 2014, this contract may be renewed, at the City's sole option, for calendar year 2015 If the contract is renewed, 2014 bid prices will be adjusted by the average annual percentage increase in the Seattle CPI for 2014 over 2013, in accordance with data published by the Bureau of Labor Statistics, U S Department of Labor 3. COMPENSATION The City shall pay the Contractor the total amount of $33,482.50, not including any applicable sales taxes, for the Tasks outlined in Exhibit A, in accordance with the bid amounts provided in Exhibit C Additional compensation, not to exceed $10,400, and not including any applicable sales taxes, will be paid for Alternate Bid Items listed in Exhibit B Applicable Washington State Retail Sales Tax on this contract shall be governed by WAC 458 -20 -171 and its related rules for the work contemplated in this agreement The Contractor shall invoice the City monthly The City will pay for the portion of the work described in the invoice that has been completed by the Contractor and approved by the City The City payment shall not constitute a waiver of the City's right to final inspection and acceptance of the project A Performance Bond Pursuant to Chapter 39 08 RCW, the Contractor, shall provide the City a performance bond for the full contract amount to be in effect until sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor and Industries and until settlement of any liens filed under Chapter 60 28 RCW, whichever is later B Retainaae The City shall hold back a retainage in the amount of five percent (5 %) of any and all payments made to contractor for a period of sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor & Industries and until settlement of any liens filed under Chapter 60 28 RCW, whichever is later C Defective or Unauthorized Work The City reserves its right to withhold payment from Contractor for any defective or unauthorized work Defective or unauthorized work includes, without limitation work and materials that PUBLIC WORKS AGREEMENT — Page 1 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLC) do not conform to the requirements of this agreement, and extra work and materials furnished without the City's written approval If Contractor is unable, for any reason, to satisfactorily complete any portion of the work, the City may complete the work by contract or otherwise, and Contractor shall be liable to the City for any additional costs incurred by the City "Additional costs" shall mean all reasonable costs, including legal costs and attorney fees, incurred by the City beyond the maximum Contract price specified above The City further reserves its right to deduct the cost to complete the Contract work, including any Additional Costs, from any and all amounts due or to become due the Contractor D Safety, training, licensing and certification Contractor warranties its personnel are appropriately trained to set up and operate work zones in streets, licensed or certified to apply herbicides, provided with appropriate safety equipment and protective clothing, and trained in safety measures and techniques for the public work contemplated to be performed under this contract E Warranty Contractor shall warranty all work in accordance with the Scope of Services F Final Payment Waiver of Claims THE ACCEPTANCE OF FINAL PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL CONSTITUTE A WAIVER OF CLAIMS, EXCEPT THOSE PREVIOUSLY AND PROPERLY MADE AND IDENTIFIED BY CONTRACTOR AS UNSETTLED AT THE TIME REQUEST FOR FINAL PAYMENT IS MADE 4. INDEPENDENT CONTRACTOR. Contractor is and shall be at all times acting as an independent contractor and not as an employee of the City The Contractor shall secure at its expense, and shall be responsible for all payments of income tax, social security, state industrial insurance compensation, unemployment compensation, and all other payroll deductions for the Contractor, officer, agents, employees and sub - contractors The Contractor shall also secure all applicable business licenses, if required, in connection with the contract services, including all required licenses for Contractor's officers, agents, employees and sub - contractors 5 TERMINATION The City may terminate this agreement without notice for good cause "Good cause" shall include, without limitation, any one or more of the following events A The Contractor's failure to supply sufficient skilled workers or suitable materials or equipment B The Contractor's failure to prosecute the work with such diligence as will ensure its physical completion within the original physical completion time specified in this Agreement and any extensions of time which may have been granted to the Contractor by change order or otherwise C The Contractor's failure to make full and prompt payment to subcontractors or for material or labor PUBLIC WORKS AGREEMENT — Page 2 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ D The Contractor's disregard of federal, state or local laws, rules or regulations E The Contractor's filing for bankruptcy or becoming adjudged bankrupt F The Contractor disregards the authority of the City G The Contractor performs work which deviates from the Contract, and neglects or refuses to correct rejected work H The Contractor's failure to provide continuous competent supervision I The Contractor otherwise violates in any material way any provisions or requirements of the contract If the City terminates this agreement for good cause, the Contractor shall not receive any momes due under this agreement, if any, until the Contract work is completed 6. PREVAILING WAGES. Contractor shall file a "Statement of Intent to Pay Prevailing Wages," with the State of Washington Department of Labor & Industries prior to commencing the Contract work Contractor shall pay prevailing wages and comply with Chapter 39 12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate provisions 7 CHANGES. The City may issue a written or oral work change directive for any change in the Contract work during the performance of this agreement If the Contractor determines, for any reason, that a change order is necessary, Contractor must submit a written change order request to the City's project manager within two (2) business days of the date the Contractor knew or should have known of the facts and events giving rise to the requested change If the City determines that the change increases or decreases the Contractor's costs or time for performance, the City will make an equitable adjustment The City will attempt, in good faith, to reach agreement with the Contractor on all equitable adjustments However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate The Contractor shall proceed with the change order work upon receiving either a written or oral work change directive from the City or a change order from the City If the Contractor fails to require a change order within the time allowed, the Contractor waives its right to make any claim or submit subsequent change order requests for that portion of the contract work If the Contractor disagrees with the equitable adjustment the Contractor must complete the change order work, however, the Contractor may elect to protest the adjustment as provided below ' A Procedure and Protest by the Contractor If the Contractor disagrees with anything required by a written work change directive, oral work change directive or change order, including any direction, instruction, interpretation, or determination by the City, the Contractor shall 1 Give a signed written notice of protest to the City within one business day, 2 Supplement the written protest within five (5) calendar days with a written statement that provides the following information PUBLIC WORKS AGREEMENT — Page 3 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ a The date of the Contract's protest b The nature and circumstances that caused the protest c The provisions in this agreement that support the protest d The estimated dollar cost, if any, of the protested work and how that estimate was determined e An analysis of the progress schedule showing the schedule change or disruption if the Contractor is asserting a schedule change or disruption The Contractor shall keep complete records of extra costs and time incurred as a result of the protested work The City shall have access to any of the Contractor's records needed for evaluating the protest 3 The City will evaluate all protests, provided the procedures in tlus section are followed If the City determines that a protest is valid, the City will adjust payment for work or time by an equitable adjustment No adjustment will be made for an invalid protest B Contractor's Duty to Complete Protested Work In spite of any protest, the Contractor shall proceed promptly with the work as the City has ordered C Contractor's Acceptance of Changes The Contractor accepts all requirements of a change order by (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides A change order that is accepted by Contractor as provided in this section shall constitute full payment and final settlement of all claims for contract time and for direct, indirect and consequential costs, including costs of delays related to any work, either covered or affected by the change D Failure to Protest Constitutes Waiver By not protesting as this section provides, the Contractor also waives any additional entitlement and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination) E Failure to Follow Procedures Constitutes Waiver By failing to follow the procedures of this section, the Contractor completely waives any claims for protested work and accepts form the City any written or oral order (including directions, instructions, interpretations, and determination) 8. CLAIMS. The Contractor shall give written notice to the City of all claims other than change orders within fourteen (14) calendar days of the occurrence of the events giving rise to the claims Any claim for damages, additional payment for any reason, or extension of time, whether under this agreement or otherwise, shall be conclusively deemed to have been waived by the Contractor unless a timely written claim is made in strict accordance with the applicable provisions of this agreement, or, if (and only if) no such provision is applicable, unless that claim is set forth in detail in writing and received by the City within seven (7) calendar days from the date Contractor knew, or should have known, of the facts giving rise to the claim At a muumum, a PUBLIC WORKS AGREEMENT — Page 4 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ Contractor's written claim must include the information set forth regarding protests in Section 7A2a -e FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT DELAY Contractor must, in any event, file any claim or bring any suit ansmg from or connected with this agreement within 120 calendar days from the date the contract work is complete 9. WARRANTY. The Contractor shall correct all defects in workmanship and materials within one year from the date of the Contractor's acceptance of the City's final payment under this contract When defects are corrected, the warranty for that portion of the work shall extend for one year form the date such correction is completed and accepted by the City The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the City of the defect If the Contractor does not accomplish the corrections within a reasonable time, the City may complete the corrections and the Contractor shall pay all costs incurred by the City in order to accomplish the correction 10. INDEMNIFICATION Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, inures, damages, losses or suits including all legal costs and attorney fees, ansmg out of or in connection with the performance of this agreement, except for injuries and damages solely caused by the City's negligence The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of mdemmfication Should a court of competent jurisdiction determine that this agreement is subject to RCW 4 24 115, then, in the event of liability for damages ansmg out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officials, employees, agents and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS INDEMNIFICATION CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE TITLE 51 RCW, SOLELY FOR THE PURPOSE OF THIS INDEMNIFICATION THE PARTIES ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER The provisions of this section shall survive the expiration or termination of this agreement 11. INSURANCE. The Contractor shall procure and maintain for the duration of this agreement, insurance against claims for injuries to persons or damage to property that may anse from or in connection with the performance of the Contract work by the Contractor, its agents, representatives, employees or subcontractors PUBLIC WORKS AGREEMENT — Page 5 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ Before beginning the work on the project described in tlus agreement, the Contractor shall provide a Certificate of Insurance evidencing A Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage, and B Commercial General Liability insurance written on an occurrence basis with limits no less than $2,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury and property damage Coverage shall include but not be limited to blanket contractual, products /completed operationsibroad form property damage, explosion, collapse and underground (XCU) if applicable, and employer's liability Any payment of deductible or self insured retention shall be the sole responsibility of the Contractor The City reserves the right to receive a certified copy of all the required insurance policies The City, its officials, employees, agents and volunteers shall be named as an additional insured on the insurance policy, as respects work performed by or on behalf of the Contractor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance The Contractor's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability The Contractor's insurance shall be primary insurance as respects the City, and it shall be an affirmative obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473 -5161, or by certified mail, return receipt requested to City of Bremerton, attn Risk Management, 345 6" Street, Suite 600, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement If this contract requires work to be performed in or on navigable waters, the Contractor shall provide insurance written on an occurrence basis with limits no less than $2,000,000 combined single limit per occurrence and $2,000,000 aggregate for claims made under the Longshoreman and Harbor Workers Act and the Jones Act 12. MISCELLANEOUS A Nondiscrimination In the hiring of employees for the performance of work under this Agreement or any sub - contract hereunder, the Contractor, its sub- contractors, or any person acting on behalf of such Contractor or sub- contractor shall not, by reason of race, religion, color, sex, national origin, or the presence of any sensory, mental, physical disability, or sexual orientation discriminate against any person who is qualified and available to perform the work to which the employment relates PUBLIC WORKS AGREEMENT — Page 6 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ B Compliance with Laws Contractor shall comply with all federal, state and local laws, rules and regulations throughout every aspect in the performance of this agreement C Work Performed at Contractor's Risk Contractor shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of tlus agreement All work shall be done at Contractor's own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work D Nonwaiver of Breach The failure of the City to insist upon strict performance of any of the terms and rights contained herein, or to exercise any option herein conferred in one or more instances, shall not be constructed to be a waiver or relinquishment of those terms and rights and they shall remain in full force and effect E Governing Law This agreement shall be governed and construed in accordance with the laws of the State of Washington If any dispute arises between the City and Contractor under any of the provisions of this agreement, resolution of that dispute shall be available only through the jurisdiction, venue and rules of the Kitsap County Superior Court, Kitsap County, Washington F Attorney's Fees To the extent not inconsistent with RCW 39 04 240, in any claim or lawsuit for damages arising from the parties' performance of this agreement, each party shall be responsible for payment of its own legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, however, nothing in this subsection shall limit the City's right to indemmfication under Section 10 of this agreement G Written Notice All communications regarding this agreement shall be sent to the parties at the addresses listed on the signature page of this agreement, unless otherwise notified Any written notice shall become effective upon delivery, but in any event three (3) calendar days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated on this agreement H Assignment Any assignment of this agreement by the Contractor without the written consent of the City shall be void I Modification No waiver, alteration, or modification of any of the provisions of this agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor J Severability If any one or more sections, sub - sections, or sentences of this agreement are held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this agreement and the remainder shall remain in full force and effect PUBLIC WORKS AGREEMENT — Page 7 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ K Entire Agreement The written provisions and terms of this agreement, together with any attached Exhibits, supersede all prior verbal statements by any representative of the City, and those statements shall not be construed as forming a part of or altering in any manner this agreement This agreement and any attached Exhibits contain the entire agreement between the parties Should any language in any Exhibit to this agreement conflict with any language contained in this agreement, the terms of this agreement shall prevail IN WITNESS WHEREOF, the parties below have executed this agreement CONTRACTOR THE CITY OF BREMERTON SMS — Superior Maintenance Services, LLC Print Name Print Name Title Title DATE DATE Notices to be sent to* Notices to be sent to* CONTRACTOR CITY OF BREMERTON Bremerton, WA 98312 (360) 473 -5758 (360) 473 -5018 (facsimile) APPROVED AS TO FORM Bremerton City Attorney ATTEST Bremerton City Clerk PUBLIC WORKS AGREEMENT — Page 8 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLC) EXHIBIT A SCOPE OF SERVICES City of Bremerton 2014 Street Vegetation/Landscape Management Program Bidders on this work are encouraged to conduct a site visit of all listed sites prior to formulating bids Measurements listed are approximations Where necessary, contractor shall provide traffic flagging and work zone setup as generally required by the Washington State Department of Labor and Industries, in accordance with the Washington State Department of Transportation Manual M 54 -44 04, Work Zone Traffic Control Guidelines February 2012 Contractor may perform work outside of normal work hours, with prior authorization from the Contract Administrator City staff performed a test of hand - applied herbicide in the spring of 2013 In general, it was found that the application rate for city sidewalk arterials with an average amount of weed growth was between 800 and 2,000 feet per hour, per single person applying herbicide This rate was achieved with 2- gallon hand - carried, hand -pump spray applicators A generally faster application rate could be achieved with backpack sprayers Warranty Contractor shall provide warranty work for skipped or missed herbicide application or vegetation trimming, generally within 30 days of notice and in coordination with the Contract Administrator It is the city's intention to work collaboratively with the Contractor to schedule warranty work efficiently so that warranty work can be performed when the Contractor's crews are in the area already for other work being performed under this contract PUBLIC WORKS AGREEMENT — Page 9 of 18 (between City of Bremerton and SMS— Superior Maintenance Solutions LLQ Work Element #1 hand - applied herbicide application (glyphosate 1% or approved substitute) to control weeds /grass at the expansion point behind the street curb and the sidewalk, around sidewalk protrusions such as power poles, and at retaining walls, foundation bases and walkway entries at the backs of sidewalks Include curb returns 15' back or to logical transition if less Goal of hand - applied herbicide application is to obtain a neat and weed -free sidewalk that is both functional and aesthetically pleasing to pedestrians and motorists It is the expectation that, for this work element, incidental herbicide application will be performed when necessary and appropriate, for example, along the gutter /street expansion point or at tree wells Initial herbicide application to be completed no later than March 30 Subsequent applications as needed to control weeds as they emerge, for the duration of the calendar year Work Element #2 For areas where sod has built up at the expansion point behind the street curb and sidewalk, remove and dispose of sod after weeds have been killed (typically 30 days after herbicide application) Coordinate with the Bremerton Public Works Department point of contact to arrange for street sweeping after sod has been cleared Sweep/blow as needed following sod cleanup to ensure sidewalks are clear of dirt, gravel, weeds, and debris Haul away sod/debns that is too large or voluminous to be swept into the street gutter Work Element #3 sweep/blow sidewalks one time, entire system as listed below Sweep/blow as needed following any sod cleanup Accomplish one -time sweeping/blowing by May 15 Haul away sod /debris that is too large or voluminous to be swept into the street gutter Work Element #4 Tree /shrub trimming trim sidewalk street trees and encroaching shrubs, vines, or invasives as necessary to provide adequate pedestrian space and a neat appearance Trim street trees to provide 7' of sidewalk clearance Trim shrubs, vines, and invasives to generally provide unobstructed pedestrian space to a height of 7 feet, for the width of the sidewalk Haul away trimmings — do not leave on sidewalk or in street gutter PUBLIC WORKS AGREEMENT —Page 10 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ Work Element #5 Vegetation trimming and mowing in designated areas • NW corner of Warren/I l mow and trim twice /month from March 15 through October • Burwell bulbouts on the westbound lanes between Warren and Naval weed/tnm twice per year, March and August (will require work zone setup) • Burwell, vegetation/shrubs at back of curb in short section of street west of Arvon and east of Olympic trim twice per year, March and August (will require work zone setup) • Burwell, herbicide application at bottom of Navy fence line, Pacific to Warren initial application no later than March 31, subsequent applications to control weeds as they emerge • Kitsap Way center median, approximately Crawford to Northlake Way apply herbicide 1 St application no later than March 31, subsequent applications to control weeds as they emerge (will require work zone setup) • Warren Avenue, north of bridge to Sheridan apply herbicide to base of the guardrail posts After herbicide kills the weeds, weed -eat around bottom of posts Trim sod from back of sidewalks Trim and remove Scotch Broom, blackberry vines, and other invasives encroaching on the sidewalk/guardrail Work Element #6 Additional work the City, at its sole option, may direct the Contractor through task order to perform additional landscape services in accordance with the "Additional 30,000 Lineal Feet Reserved" bid item PUBLIC WORKS AGREEMENT — Page 1 I of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ City of Bremerton Arterial Sidewalk 5 stem to be Maintained Item # Description Approx Lineal Feet 1 Traffic islands and adjacent sidewalks at the SR- 3/Kitsap Way interchange, include overpass sidewalks and street, National to Auto Center Boulevard 5,400 2 Traffic islands and adjacent sidewalks at 500 the SR- 3/Loxie Eagans interchange 3 Kitsap Way, 300 feet west of SR -3 19 freeway interchange to Callow 4 6th Street, Callow to Washington 14 5 11th Street, Washington to Kitsap Way 16 6 Callow, 11 th to 1 st 5,400 7 Warren Avenue, Burwell to Sheridan 17 8 Wheaton Way, Sheridan to Riddell 13 9 Burwell, Washington to Callow 14 10 Park, Burwell to 11 th 4 11 Washington, 2nd to 11 th (include islands 5,200 in Washington/ 11 th curve and transition) 12 Naval, 1 st to 11 th 5,200 13 Perry, E 11th to NE Stone Way 9 14 Schley, Samara to Sheridan 5,000 15 National, Kitsap Way to Burwell 2,000 16 Auto Center Way, Loxie Eagans to Kitsap 9 Way 17 Sheridan, Wheaton Way to Cherry, South Side of Street 1 18 Lebo, Wheaton Way to Lion's Park Boat 10,500 amp (include dead end stub) 19 Sylvan, Wheaton Way to Olympus 5 PUBLIC WORKS AGREEMENT — Page 12 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ City of Bremerton Arterial Sidewalk System to be Maintained (coot.) Item # Description Approx Lineal Feet 20 30,000 Additional Lineal Feet Reserved 30,000 Total 194 PUBLIC WORKS AGREEMENT — Page 13 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ EXHIBIT B ALTERNATE BID ITEMS City of Bremerton 2014 Street Vegetation/Landscape Management Program Bidders on this work are encouraged to conduct a site visit of all listed sites prior to formulating bids Alternate Bid Item #1 Remove sod, trim and clean the back of sidewalks It is estimated that about one - quarter of the arterial sidewalk system designated for maintenance under this contract, will require some level of sod removal at the back of the sidewalks Level of effort required for sod removal will vary Alternate Bid Item #2 For the sidewalk on the south side of Sheridan, Wheaton Way to Cherry Remove sod, trim and clean sidewalk, clean and weed and clean fence at back of sidewalk, removing vegetation Apply herbicide to base of fence to control weed growth Alternate Bid Item #3 Clear and grub, weed, trim, and remove invasive vegetation adjacent to the fence surrounding the City's Olympus water utility property Apply herbicide at the base of the fence (6" on either side of base) to control weed and grass growth Trim to achieve a clear zone on both sides of the fence of approximately six feet PUBLIC WORKS AGREEMENT — Page 14 of 18 (between Cory of Bremerton and SMS — Superior Maintenance Solutions LLQ Exhibit C Bid Proposal Arterial Street Sidewalk Landscape Maintenance City of Bremerton Description Estimated Unit Unit Price Total Quantity Work Element #1 Hand - Applied Herbicide Application 164,500 ft Foot 019 X 3 $9,37650 Work Element #2 Remove Sod at Expansion Joint, Back of Curb N/A LS N/A $7,50000 Work Element #3 Swegp/Blow Sidewalks, One Time 164,500 ft LS N/A $2,96100 Work Element #4 Tree /Shrub Trimming N/A LS N/A $4,80000 Work Element #5 Vegetation Trimmin owin g In Designated Areas • NW corner Warren/l lth N/A LS N/A $99500 • Burwell bulbouts N/A LS N/A $1,25000 • Burwell btwn Arvon and Olympic N/A LS N/A $95000 • Kitsap Way center median N/A LS N/A $105000 • Warren Avenue north of bridge N/A LS N/A $3,25000 Total, Work Elements #1- #5 $32,132.50 Work Element #6 Additional Work 30,000 lineal feet 30,000 ft Foot $1,35000 PUBLIC WORKS AGREEMENT — Page 15 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ Exhibit C Bad Proposal (continued) Arterial Street Sidewalk Landscape Maintenance City of Bremerton Description Estimated Unit Unit Price Total Quantity Alternate Bid Items Alternate #1 Remove Sod, back of sidewalk system wide N/A LS N/A $8,50000 Alternate #2 Shendan Sod/Fence Maintenance N/A LS N/A $1,05000 Alternate #3 Olympus fence N/A LS N/A $85000 PUBLIC WORKS AGREEMENT — Page 16 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ PERFORMANCE BOND (page 1 of 2) KNOW ALL MEN BY THESE PRESENTS, That as CONTRACTOR, and as Surety, are held and firmly bound unto City of Bremerton hereinafter called "OWNER," in the sum of dollars, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that said CONTRACTOR has been awarded and is about to enter into the annexed Agreement with said OWNER to perform the WORK as specified or indicated in the Contract Documents entitled "City of Bremerton, Department of Public Works and Utilities, Bremerton, Washington, Crosstown Pipeline Upper Reach Repair ", now, therefore, In the event CONTRACTOR fads to timely or properly perform any of the requirements of the Contract Documents at the times and in the manner contained therein, the Surety shall be liable under this bond up to the amount of the bond for the full amount of the OWNERS's expenses to construct or repair all work as well as all loss, cost, expense or damage suffered by the OWNER in excess of the Contract amount due to the CONTRACTOR'S failure to comply with any contract or permit conditions or other applicable laws and regulations The Surety agrees that within 30 calendar days of receiving notice that the OWNER has declared a CONTRACTOR default and formally terminated the CONTRACTOR'S right to complete the Contract pursuant to its terms and conditions and that the CONTRACTOR has defaulted on all or part of the terms guaranteed by this bond, the Surety shall either 1 Notify the OWNER in writing of its intent to cure the default itself within a reasonable period of time acceptable to the OWNER The OWNER agrees to pay the balance of the Contract price to the Surety in accordance with the terms of the Contract, or 2 Tender to the OWNER the demanded sum, up to the amount of the bond However, if the amount necessary for the OWNER to cure the default is less than the amount tendered, the OWNER will return, without interest, any overpayment to the Surety PROVIDED, that any alterations in the WORK to be done or the materials to be furnished, or changes in the time of completion, which may be made pursuant to the terms of said Contract Documents, shall not in any way release said CONTRACTOR or said Surety hereunder, nor shall any extensions of time granted under the provisions of said Contract Documents, release either said CONTRACTOR or said Surety, and notice of such alterations or extensions of the Agreement is hereby waived by said Surety PUBLIC WORKS AGREEMENT — Page 17 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ PERFORMANCE BOND (page 2 of 2) The obligation of the Surety shall include reimbursing the City for all costs and expenses, (including, but not limited to fees and charges of engineers, architects, attorneys, and other professionals, and court costs if litigation is commenced) incurred by the OWNER in enforcing the provisions of this Bond The CONTRACTOR hereby agrees that the CONTRACTOR'S obligation to perform the required work is not limited to the amount of funds held by the Surety This bond is irrevocable and cannot be canceled by the Surety or the CONTRACTOR This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until the bond is released in writing by the OWNER at the written request of the Surety or CONTRACTOR IN WITNESS WHEREOF, we have hereunder set our hands and seals this day of , 20_ (SEAL) (SEAL) (CONTRACTOR) (Surety) By By (Signature and SEAL) (Signature and SEAL) (SEAL AND NOTARIAL ACKNOWLEDGEMENT OF SURETY) Address of Surety to which all notices shall be sent Address of Surety for service of process (must be a physical address) PUBLIC WORKS AGREEMENT — Page 18 of 18 (between City of Bremerton and SMS — Superior Maintenance Solutions LLQ City of Bremerton 11 8 Bid Tabulation, February 14, 2014 aa�cr o© Gam• oa Arterial Street and Sidewalk Landscape Maintenance SMS — Superior S Varick TruGreen Maintenance Solutions (Received at 4 Items #145 $32,13250 $56,305.00 $76,24625 Item #6 $1,35000 $15,00000 $4,17000 Alternate #1 $8,50000 $4,00000 $3,219.00 Alternate #2 $1,05000 $1,80000 $1,927.20 Alternate #3 $85000 $3,00000 $1,92720 Total $43,882.50 $80,105.00 $87,489.95 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT Contract with Action Services Study Session Date February 26, 2014 Corporation for Installation of Hot Applied COUNCIL MEETING Date March 5, 2014 Street Traffic Markings Department PW &U Presenter Chal Martin Phone 473 -5758 SUMMARY This small works roster project was provided to 109 qualified contractors listed on the MRSC small works site Three bids were received The low bidder was Action Services Corporation, with a bid of $60,760 00 for listed services, and $63,050 00 for additional services by individual task order The contract's focus is to refresh street markings on arterial streets throughout the City This contract is a followup to a successful 2013 pilot project to do this work by contract rather than with our in -house forces, which provided substantial savings to the City (our cost to purchase dust the thermoplastic material alone is about double this contract amount) Because this is specialty work, this method of accomplishment is more efficient and saves valuable time for our Street crew to provide other necessary street maintenance services The City has budgeted $120,000 for this effort in 2014 This contract, including all additional services, exceeds the budgeted amount for this line item, however, it is manageable within our overall Street Fund budget Although we may not use all of the services, we would like authority to utilize all of the services envisioned within the contract ATTACHMENTS 1) Bid Tabulation, 2) Contract FISCAL IMPACTS (Include Budgeted Amount) Funding for this contract will come from Fund 102 (Streets), line item 542304254110 Professional Services The total bid amount is $123,810 00 STUDY SESSION AGENDA ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve a contract with Action Services Corporation for Hot Applied Street Traffic Markings in the amount of $123,810 00, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 PUBLIC WORKS AGREEMENT For Installation of Hot - Applied Street Traffic Markings THIS AGREEMENT, is entered into between the City of Bremerton, a Washington Municipal Corporation ( "City "), and Action Services Corporation ( "Contractor "), whose mailing address is P O Box 4339, Bremerton, WA 98312 The parties agree as follows 1 CONTRACTOR SERVICES. The Contractor shall perform the following services for the City Installation of hot - applied street markings in accordance with Exhibit A, Scope of Services 2. TIME OF COMPLETION. Contractor shall complete the work by September 30, 2014 3. COMPENSATION. The City shall pay the Contractor the total amount of $60,760.00, including applicable sales taxes, for Task #1 of the Scope of Services Additional compensation, not to exceed $63,050.00, may be paid for Task #2 of the Scope of Services, pursuant to individual task orders, at the sole discretion of the City Applicable Washington State Retail Sales Tax on this contract shall be governed by WAC 458 -20 -171 and its related rules for the work contemplated in this agreement The Contractor shall invoice the City monthly The City will pay for the portion of the work described in the invoice that has been completed by the Contractor and approved by the City The City payment shall not constitute a waiver of the City's right to final inspection and acceptance of the project A Performance Bond Pursuant to Chapter 39 08 RCW, the Contractor, shall provide the City a performance bond for the full contract amount of Task #Ito be in effect until sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor and Industries and until settlement of any liens filed under Chapter 60 28 RCW, whichever is later In the event the full contract amount bid for Task #1 is less than $35,000, pursuant to Chapter 39 08 RCW, the Contractor, in lieu of providing the City a performance bond, may elect to have the City retain the final fifty percent (50 %) of the Contract amount for Task #1, for a period of sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor & Industries and until settlement of any liens filed under Chapter 60 28 RCW, whichever is later B Retamaae In the event the full contract bid for Task #1 exceeds $35,000, the City shall hold back a retamage in the amount of five percent (5 %) of any and all payments made to contractor for a period of sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor & Industries and PUBLIC WORKS AGREEMENT — Page 1 of 14 (between City of Bremerton and Action Services Corporation) until settlement of any liens filed under Chapter 60 28 RCW, whichever is later C Defective or Unauthorized Work The City reserves its right to withhold payment from Contractor for any defective or unauthorized work Defective or unauthorized work includes, without limitation work and materials that do not conform to the requirements of this agreement, and extra work and materials f irmshed without the City's written approval If Contractor is unable, for any reason, to satisfactorily complete any portion of the work, the City may complete the work by contract or otherwise, and Contractor shall be liable to the City for any additional costs incurred by the City "Additional costs" shall mean all reasonable costs, including legal costs and attorney fees, incurred by the City beyond the maximum Contract price specified above The City further reserves its right to deduct the cost to complete the Contract work, including any Additional Costs, from any and all amounts due or to become due the Contractor D Warranty Contractor shall warranty all work in accordance with the Scope of Services E Final Payment Waiver of Claims THE ACCEPTANCE OF FINAL PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL CONSTITUTE A WAIVER OF CLAIMS, EXCEPT THOSE PREVIOUSLY AND PROPERLY MADE AND IDENTIFIED BY CONTRACTOR AS UNSETTLED AT THE TIME REQUEST FOR FINAL PAYMENT IS MADE 4. INDEPENDENT CONTRACTOR. Contractor is and shall be at all times acting as an independent contractor and not as an employee of the City The Contractor shall secure at its expense, and shall be responsible for all payments of income tax, social security, state industrial insurance compensation, unemployment compensation, and all other payroll deductions for the Contractor, officer, agents, employees and sub - contractors The Contractor shall also secure all applicable business licenses, if required, in connection with the contract services, including all required licenses for Contractor's officers, agents, employees and sub - contractors 5. TERMINATION. The City may terminate this agreement without notice for good cause "Good cause" shall include, without limitation, any one or more of the following events A The Contractor's failure to supply sufficient skilled workers or suitable materials or equipment B The Contractor's failure to prosecute the work with such diligence as will ensure its physical completion within the original physical completion time specified in this Agreement and any extensions of time which may have been granted to the Contractor by change order or otherwise C The Contractor's failure to make full and prompt payment to subcontractors or for material or labor PUBLIC WORKS AGREEMENT — Page 2 of 14 (between City of Bremerton and Action Services Corporation) D The Contractor's disregard of federal, state or local laws, rules or regulations E The Contractor's filing for bankruptcy or becoming adjudged bankrupt F The Contractor disregards the authority of the City G The Contractor performs work which deviates from the Contract, and neglects or refuses to correct rejected work H The Contractor's failure to provide continuous competent supervision I The Contractor otherwise violates in any material way any provisions or requirements of the contract If the City terminates this agreement for good cause, the Contractor shall not receive any momes due under this agreement, if any, until the Contract work is completed 6. PREVAILING WAGES. Contractor shall file a "Statement of Intent to Pay Prevailing Wages," with the State of Washington Department of Labor & Industries prior to commencing the Contract work Contractor shall pay prevailing wages and comply with Chapter 39 12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate provisions 7 CHANGES. The City may issue a written or oral work change directive for any change in the Contract work during the performance of this agreement If the Contractor determines, for any reason, that a change order is necessary, Contractor must submit a written change order request to the City's project manager within two (2) business days of the date the Contractor knew or should have known of the facts and events giving rise to the requested change If the City determines that the change increases or decreases the Contractor's costs or time for performance, the City will make an equitable adjustment The City will attempt, in good faith, to reach agreement with the Contractor on all equitable adjustments However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate The Contractor shall proceed with the change order work upon receiving either a written or oral work change directive from the City or a change order from the City If the Contractor fails to require a change order within the time allowed, the Contractor waives its right to make any claim or submit subsequent change order requests for that portion of the contract work If the Contractor disagrees with the equitable adjustment the Contractor must complete the change order work, however, the Contractor may elect to protest the adjustment as provided below A Procedure and Protest by the Contractor If the Contractor disagrees with anything required by a written work change directive, oral work change directive or change order, including any direction, instruction, interpretation, or determination by the City, the Contractor shall 1 Give a signed written notice of protest to the City within one business day, 2 Supplement the written protest within five (5) calendar days with a written statement that provides the following information PUBLIC WORKS AGREEMENT — Page 3 of 14 (between City of Bremerton and Action Services Corporation) a The date of the Contract's protest b The nature and circumstances that caused the protest c The provisions in this agreement that support the protest d The estimated dollar cost, if any, of the protested work and how that estimate was determined e An analysis of the progress schedule showing the schedule change or disruption if the Contractor is asserting a schedule change or disruption The Contractor shall keep complete records of extra costs and time incurred as a result of the protested work The City shall have access to any of the Contractor's records needed for evaluating the protest 3 The City will evaluate all protests, provided the procedures in this section are followed If the City determines that a protest is valid, the City will adjust payment for work or time by an equitable adjustment No adjustment will be made for an invalid protest B Contractor's Duty to Complete Protested Work In spite of any protest, the Contractor shall proceed promptly with the work as the City has ordered C Contractor's Acceptance of Changes The Contractor accepts all requirements of a change order by (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides A change order that is accepted by Contractor as provided in this section shall constitute full payment and final settlement of all claims for contract time and for direct, indirect and consequential costs, including costs of delays related to any work, either covered or affected by the change D Failure to Protest Constitutes Waiver By not protesting as this section provides, the Contractor also waives any additional entitlement and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination) E Failure to Follow Procedures Constitutes Waiver By failing to follow the procedures of this section, the Contractor completely waives any claims for protested work and accepts form the City any written or oral order (including directions, instructions, interpretations, and determination) 8. CLAIMS The Contractor shall give written notice to the City of all claims other than change orders within fourteen (14) calendar days of the occurrence of the events giving rise to the claims Any claim for damages, additional payment for any reason, or extension of time, whether under this agreement or otherwise, shall be conclusively deemed to have been waived by the Contractor unless a timely written claim is made in strict accordance with the applicable provisions of this agreement, or, if (and only if) no such provision is applicable, unless that claim is set forth in detail in writing and received by the City within seven (7) calendar days from the date Contractor knew, or should have known, of the facts giving rise to the claim At a mmimum, a Contractor's written claim must include the information set forth regarding protests in Section 7A2a -e PUBLIC WORKS AGREEMENT — Page 4 of 14 (between City of Bremerton and Action Services Corporation) FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT DELAY Contractor must, in any event, file any claim or bring any suit ansmg from or connected with this agreement within 120 calendar days from the date the contract work is complete 9. WARRANTY. Contractor shall warranty all work, less normal wear and tear, until September 30, 2016 Contractor shall have 240 days to perform warranty corrections, once the warranty work is identified For the purposes of the warranty, the City shall "batch" the warranty work to enable the contractor to mobilize and perform all repairs within a single work window When defects are corrected, the warranty for that portion of the work shall extend for one year from the date such correction is completed and accepted by the City If the Contractor, after written notification, does not accomplish the corrections within the timeframe noted above, the City may complete the corrections and the Contractor shall pay all costs incurred by the City in order to accomplish the correction 10. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits including all legal costs and attorney fees, ansing out of or in connection with the performance of this agreement, except for injuries and damages solely caused by the City's negligence The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification Should a court of competent jurisdiction determine that this agreement is subject to RCW 4 24 115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officials, employees, agents and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS INDEMNIFICATION CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE TITLE 51 RCW, SOLELY FOR THE PURPOSE OF THIS INDEMNIFICATION THE PARTIES ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER The provisions of this section shall survive the expiration or termination of this agreement 11. INSURANCE The Contractor shall procure and maintain for the duration of this agreement, insurance against claims for injuries to persons or damage to property that may anse from or in connection with the performance of the Contract work by the Contractor, its agents, representatives, employees or subcontractors Before beginning the work on the project described in this agreement, the Contractor shall provide a Certificate of Insurance evidencing PUBLIC WORKS AGREEMENT — Page 5 of 14 (between City of Bremerton and Action Services Corporation) A Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage, and B Commercial General Liabilitv insurance written on an occurrence basis with limits no less than $2,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury and property damage Coverage shall include but not be limited to blanket contractual, products /completed operations/broad form property damage, explosion, collapse and underground (XCU) if applicable, and employer's liability Any payment of deductible or self insured retention shall be the sole responsibility of the Contractor The City reserves the right to receive a certified copy of all the required insurance policies The City, its officials, employees, agents and volunteers shall be named as an additional insured on the insurance policy, as respects work performed by or on behalf of the Contractor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance The Contractor's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability The Contractor's insurance shall be primary insurance as respects the City, and it shall be an affirmative obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473 -5161, or by certified mail, return receipt requested to City of Bremerton, attn Risk Management, 345 6 t ' Street, Suite 600, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement If tins contract requires work to be performed in or on navigable waters, the Contractor shall provide insurance written on an occurrence basis with linuts no less than $2,000,000 combined single limit per occurrence and $2,000,000 aggregate for claims made under the Longshoreman and Harbor Workers Act and the Jones Act 12 MISCELLANEOUS. A Nondiscrimination In the lunng of employees for the performance of work under this Agreement or any sub - contract hereunder, the Contractor, its sub- contractors, or any person acting on behalf of such Contractor or sub- contractor shall not, by reason of race, religion, color, sex, national origin, or the presence of any sensory, mental, physical disability, or sexual orientation discriminate against any person who is qualified and available to perform the work to which the employment relates PUBLIC WORKS AGREEMENT — Page 6 of 14 (between City of Bremerton and Action Services Corporation) B Compliance with Laws Contractor shall comply with all federal, state and local laws, rules and regulations throughout every aspect in the performance of this agreement C Work Performed at Contractor's Risk Contractor shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of this agreement All work shall be done at Contractor's own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work D Nonwaiver of Breach The failure of the City to insist upon strict performance of any of the terms and rights contained herein, or to exercise any option herein conferred in one or more instances, shall not be constructed to be a waiver or relinquishment of those terms and rights and they shall remain in full force and effect E Governing Law This agreement shall be governed and construed in accordance with the laws of the State of Washington If any dispute arises between the City and Contractor under any of the provisions of this agreement, resolution of that dispute shall be available only through the jurisdiction, venue and rules of the Krtsap County Superior Court, Kitsap County, Washington F Attorney's Fees To the extent not inconsistent with RCW 39 04 240, in any claim or lawsuit for damages ansmg from the parties' performance of this agreement, each party shall be responsible for payment of its own legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, however, nothing in this subsection shall limit the City's right to indemnification under Section 10 of this agreement G Written Notice All communications regarding this agreement shall be sent to the parties at the addresses listed on the signature page of this agreement, unless otherwise notified Any written notice shall become effective upon delivery, but in any event three (3) calendar days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated on this agreement H Assignment Any assignment of this agreement by the Contractor without the written consent of the City shall be void I Modification No waiver, alteration, or modification of any of the provisions of this agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor J Severabiltty If any one or more sections, sub - sections, or sentences of this agreement are held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this agreement and the remainder shall remain in full force and effect PUBLIC WORKS AGREEMENT — Page 7 of 14 (between City of Bremerton and Action Services Corporation) K Entire Agreement The written provisions and terms of this agreement, together with any attached Exhibits, supersede all prior verbal statements by any representative of the City, and those statements shall not be construed as forming a part of or altering in any manner this agreement This agreement and any attached Exhibits contain the entire agreement between the parties Should any language in any Exhibit to this agreement conflict with any language contained in this agreement, the terms of this agreement shall prevail IN WITNESS WHEREOF, the parties below have executed this agreement CONTRACTOR THE CITY OF BREMERTON Action Services Corporation Print Name Print Name Title Title DATE DATE Notices to be sent to* Notices to be sent to* CONTRACTOR CITY OF BREMERTON Bremerton, WA 98312 (360) 473 -5758 (360) 473 -5018 (facsimile) APPROVED AS TO FORM Bremerton City Attorney ATTEST Bremerton City Clerk PUBLIC WORKS AGREEMENT — Page 8 of 14 (between City of Bremerton and Action Services Corporation) EXHIBIT A SCOPE OF SERVICES TASK #1 The primary purpose of tlus contract is to refresh the crosswalk and street markings on major arterial streets within the corporate boundaries of the City of Bremerton Refresh crosswalks, stop bars and turn arrows per attached list with hot - applied markings Bidders on this project are encouraged to conduct site visits to estimate the square footage TASK #2 On -call A secondary purpose of this contract is to provide additional hot - applied traffic markings as directed, in accordance with the unit pricing provided in the bid proposal Additional Information For all the work requested, Contractor may forego grinding, and apply new marking over existing given satisfactory documentation that the new material will properly adhere Please note the Contractor must warranty the work in accordance with the provisions of paragraph 9 of this contract For all work required in this contract and any additional work, Contractor will provide traffic control flagging to meet the requirements of Washington State Department of Transportation Manual M 54 -44 04, Work Zone Traffic Control Guidelines February 2012 Night work is allowed under this contract with prior approval of the City The City, at its sole option, may direct the Contractor through task order to perform additional hot - applied traffic markings No task order for additional work shall be for less than 1,000 square feet of markings Contractor shall have 120 calendar days to perform the additional work Warranty Contractor shall warranty all work, less normal wear and tear, until September 30, 2016 Contractor shall have 240 days to perform warranty corrections, once the warranty work is identified For the purposes of the warranty, the City shall "batch" the warranty work to enable the contractor to mobilize and perform all repairs within a single work window Street marking standards, Plastic and paint removal on arterial crosswalks — current standard is hot - applied material, 2'X 9' bars spaced so as to avoid placement in the wheel track area — typically 5 bars on a standard width 2 -lane street, 11 bars on an arterial street with a center turn lane Contractor shall remove existing paint or plastic material to ensure adhesion of new hot - applied material and provide a neat appearance of the newly - applied markings Stop bar standard is 18 inch width For this contract, the traffic arrow standard is as currently applied PUBLIC WORKS AGREEMENT — Page 9 of 14 (between City of Bremerton and Action Services Corporation) Exhibit A Task #1 General Instructions the annotation "all" means include surface preparation, removal of old paint and plastic as necessary, and installation of new hot - applied traffic markings in accordance with the City's new standard to include crosswalks, stop bars and traffic arrows Areas marked with an asterisk ( *) should be prioritized to the extent reasonable and possible When doing intersections, do not refresh the ONLY legends Grind old ONLY markings Hot- Apphed Street Markm$s, West Side Washington and 6 street (all) (refresh old existing — do not replace with new standard) Kitsap Way intersections • At 11 th (all) • At Cambrian stop bar and ' / crosswalk • At Corbett all • At National all • At QFC midblock refurbish crosswalk • At Oyster Bay all • At Arsenal Way /Shorewood all • At SR- 3/Kitsap Way crossings but not the crossings on the SR- 3freeway ramps Auto Center Way (all) Snyder and 19' street stop bars Callow Ave and 1" street Install /refresh horizontal lines at crosswalks Callow and Rodgers Arrows Loxie Eagans Blvd @ off/on ramps (all except SR -3 freeway ramps) *Naval Ave and 15 street (all) *Callow Ave and Burwell (all) *Farragut and Charleston (all) East Side *Lebo @ Stafford West of Jumper (currently painted refurbish w/ hot - applied) *Wheaton Way at Lebo /Cherry (East, North, and West legs — south leg will be replaced via separate contract) *Wheaton Way and Hollis (all) *Wheaton Way Sheridan to Riddell center turn arrows Wheaton Way at Sheridan extend crosswalks to 9' Wheaton Way @ Riddell South side only Trenton @ E 11 'n 1 stop bar Stephenson and Lebo (Refurbish) Pine @ Sheridan stop bar North side only Other spot improvements 1) Gateway Install 18" wide bars on the front and back of the two (2) sidewalk crossings one crossing dust south of 1' street and the other crossing at Burwell PUBLIC WORKS AGREEMENT — Page 10 of 14 (between City of Bremerton and Action Services Corporation) 2) Washington Ave at end of Burwell Install new standard crosswalk on the sidewalk at the driveway entrance into the Harborside condos 3) Callow Ave between Burwell and 6 refresh horizontal bars delineating in front and back of the mid -block crosswalk 4) Pacific Avenue southbound, north and south of Burwell intersection install traffic arrows showing direction of traffic Northbound, north of Burwell intersection, install traffic arrow in northbound lane indicating direction of traffic 5) Ferry Terminal/Washington large stamped crosswalk install 18" bars at the front and back of the crosswalk 6) Washington at 2 nd intersection refurbish the horizontal crosswalk delineator horizontal bars at crosswalks Note this work is not using the current city standard, due to the unique configuration of these crosswalks 7) Washington at Burwell intersection refurbish the horizontal crosswalk delineator bars at crosswalks Note this work is not using the current city standard, due to the unique configuration of these crosswalks Task #2 Additional hot - applied traffic markings by individual task order, in accordance with the bid proposal PUBLIC WORKS AGREEMENT — Page 11 of 14 (between Cary of Bremerton and Action Services Corporation) Bid Proposal Hot- Apphed Street Traffic Markings City of Bremerton Description Estimated Unit Unit Price Total Quantity Task #1 Various Street Markinp Per attached listing N/A Lump Sum N/A $60,76000 Total $60,760.00 Task #2 Additional Applications by Task Order Surface Preparation 2,500 sf $350 $8,75000 Hot - Applied Traffic Markings 10,000 sf $543 $54,30000 Total $63,050.00 Bids will be evaluated using the following mathematical weighting (Task #1 Total)(2) + (Task #2 Total) PUBLIC WORKS AGREEMENT — Page 12 of 14 (between City of Bremerton and Action Services Corporation) PERFORMANCE BOND (page 1 of 2) KNOW ALL MEN BY THESE PRESENTS, That as CONTRACTOR, and as Surety, are held and firmly bound unto City of Bremerton hereinafter called "OWNER," in the sum of dollars, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that said CONTRACTOR has been awarded and is about to enter into the annexed Agreement with said OWNER to perform the WORK as specified or indicated in the Contract Documents entitled "City of Bremerton, Department of Public Works and Utilities, Bremerton, Washington, Crosstown Pipeline Upper Reach Repair ", now, therefore, In the event CONTRACTOR fads to timely or properly perform any of the requirements of the Contract Documents at the times and in the manner contained therein, the Surety shall be liable under this bond up to the amount of the bond for the full amount of the OWNERS's expenses to construct or repair all work as well as all loss, cost, expense or damage suffered by the OWNER in excess of the Contract amount due to the CONTRACTOR'S failure to comply with any contract or permit conditions or other applicable laws and regulations The Surety agrees that within 30 calendar days of receiving notice that the OWNER has declared a CONTRACTOR default and formally terminated the CONTRACTOR'S right to complete the Contract pursuant to its terms and conditions and that the CONTRACTOR has defaulted on all or part of the terms guaranteed by this bond, the Surety shall either 1 Notify the OWNER in writing of its intent to cure the default itself within a reasonable period of time acceptable to the OWNER The OWNER agrees to pay the balance of the Contract price to the Surety in accordance with the terms of the Contract, or 2 Tender to the OWNER the demanded sum, up to the amount of the bond However, if the amount necessary for the OWNER to cure the default is less than the amount tendered, the OWNER will return, without interest, any overpayment to the Surety PROVIDED, that any alterations in the WORK to be done or the materials to be furnished, or changes in the time of completion, which may be made pursuant to the terms of said Contract Documents, shall not in any way release said CONTRACTOR or said Surety hereunder, nor shall any extensions of time granted under the provisions of said Contract Documents, release either said CONTRACTOR or said Surety, and notice of such alterations or extensions of the Agreement is hereby waived by said Surety PUBLIC WORKS AGREEMENT — Page 13 of 14 (between Cary of Bremerton and Action Services Corporation) PERFORMANCE BOND (page 2 of 2) The obligation of the Surety shall include reimbursing the City for all costs and expenses, (including, but not limited to fees and charges of engineers, architects, attorneys, and other professionals, and court costs if litigation is commenced) incurred by the OWNER in enforcing the provisions of this Bond The CONTRACTOR hereby agrees that the CONTRACTOR'S obligation to perform the required work is not limited to the amount of funds held by the Surety This bond is irrevocable and cannot be canceled by the Surety or the CONTRACTOR This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until the bond is released in writing by the OWNER at the written request of the Surety or CONTRACTOR IN WITNESS WHEREOF, we have hereunder set our hands and seals this day Of , 20_ (SEAL) (SEAL) (CONTRACTOR) (Surety) By By (Signature and SEAL) (Signature and SEAL) (SEAL AND NOTARIAL ACKNOWLEDGEMENT OF SURETY) Address of Surety to which all notices shall be sent Address of Surety for service of process (must be a physical address) PUBLIC WORKS AGREEMENT — Page 14 of 14 (between City of Bremerton and Action Services Corporation) City of Bremerton ?S Bid Tabulation, February 14, 2014 (3044 ov > o� Hot Applied Street Traffic Markings Stripe Rite Inc Task #1$70,000 Task #2 $57,500 Total $127,500 Action Services Task #1$60,760 Task #2 $63,050 Total $123,810 Apply -A -Line Task #1$91,275 Task #2 $75,500 Total $166,775 Lori Smith From Lori Smith on behalf of City Council Sent Monday, March 03, 2014 12 28 PM To City Council Subject FW (with Staff Input /Response) Agenda item A 3 "Contract with SMS for Arterial Street Sidewalk Landscape Maintenance" Attn Council Members (FYI) From Chal Martin Sent Monday, March 03, 2014 12 06 PM To: Roy Runyon, City Council Cc: Roger Lubovich, Patty Lent, Wyn Birkenthal Subject: RE Agenda item A 3 "Contract with SMS for Arterial Street Sidewalk Landscape Maintenance" Ladies and Gentlemen, notwithstanding our commitment to search for a suitable organic substitute for the Glyphosate herbicide, this section of the stormwater code (15 04) does not constitute a prohibition on herbicide applications either within the City or by City employees or contractors This section does prohibit "throwing, draining, or otherwise discharging" herbicides into the City's stormwater system Illicit discharge is at issue here —not the proper application of herbicides for their intended purpose in accordance with best management practices and manufacturers' instructions The primary purpose of the work envisioned under this contract is to improve City appearance by controlling vegetation adjacent to our arterial streets A secondary purpose is to control vegetation along City -owned property or right of way I think that mostly, this work is not the type of thing that would be enforceable under the City's ordinance Going forward, the extent to which the Council determines it would like to enforce BMC 1110, and the practical implications of such enforcement in terms of staff time, resources, and results, could be a topic for discussion To more fully inform that discussion, I would recommend first implementing this contract and observing the results I believe this contract is a positive step forward and represents a very efficient use of City resources to improve City appearance, for the benefit of our residents Chal Chal A Martin, P E Director, Public Works and Utilities Department City of Bremerton (360) 473 -5758 / (360) 473 -5018 Fax chal martin @ci bremerton wa us From. Roy Runyon Sent: Friday, February 28, 2014 4 36 PM To: City Council Cc Chal Martin, Roger Lubovich, Roy Runyon Subject Agenda item A 3 "Contract with SMS for Arterial Street Sidewalk Landscape Maintenance" Council, This contract and scope of work appear to contradict the spirit if not the letter of the following sections of the Bremerton Municipal Code (BMC)• 1 Chapter 1110 SIDEWALKS - DUTIES OF ABUTTING PROPERTY OWNERS (see 11.10 010 Hazardous Conditions Prohibited) Work Element #6 is problematic because many of the sidewalk sections abut private property. Furthermore, passage of this contract by the city council indicates that it wishes to pick winners and losers because, as the mayor admitted, the Code (BMC) has been applied unevenly To whit, an owner of a commercial property in the Callow business district paid for the repair of the sidewalk abutting her property to correct sidewalk defects resulting from tree roots. Why is it fair for the City to perform maintenance of sidewalks abutting other private property when BMC 1110 exists? Chapter 13.10 MUNICIPAL TREES (see 13 10 030 Responsibility for Municipal Trees) Again Work Element #6 may include sections where maintenance of the trees may be the responsibility of the abutting property owners Chapter 15.04 STORMWATER (see 15 04.190 Prohibited Acts) Section 15.04 190 (b) Prohibited Discharges (1) states. "No person shall throw, drain, or otherwise discharge, cause or allow others under his /her control to throw, drain or otherwise discharge into the municipal storm drain system any materials other than stormwater." Under (b) (2) the section states. Examples of prohibited contaminants include but are not limited to the following: Acids, alkalis, or bases; Animal carcasses; Antifreeze and other automotive products; Bark and other fibrous materials; Batteries; Chemicals not normally found in uncontaminated water; Chlorine, bromine, or other disinfectants; Construction materials; Degreasers and /or solvents; Domestic animal wastes; Drain cleaners; Dyes, unless approved by the Oty, Flammable or explosive materials; Food wastes; Heated water; Lawn clippings, leaves, or branches; Metals in either particulate or dissolved form; Paints, stains, resins, lacquers, or varnishes, Pesticides, herbicides. or fertilizers, Petroleum products including but not limited to oil, gasoline, grease, fuel oil and heating oil, Radioactive material; Recreational vehicle waste; Sewage; Silt, sediment, concrete, cement or gravel; Soaps, detergents, or ammonia, Steam cleaning wastes; Swimming pool cleaning wastewater or filter backwash, Trash or debris, Any other process - associated discharge except as otherwise allowed in this section,... Once again, I request the agenda item be moved to General Business so the cited contradictions and an alternative to the use of the 1% solution of glyphosate may be discussed. Roy Runyon Councilmember, District 6 City of Bremerton 2 4 AGENDA BILL CITY OF BREMERTON 45 44 CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeereeeeeeeeeeeeeeeeeeeeeereeeeeeeeeeeeeeeereeeeee■ SUBJECT Resolution No 3214 authorizing Study Session Date February 26, 2014 investment of City monies in the Local COUNCIL MEETING Date March 5, 2014 Government Investment Pool Department Financial Services Presenter Cathy Johnson Phone 473 -5296 SUMMARY Chapter 294, Laws of 1986 authorize public funds by governmental entities to be invested in the Local Government Investment Pool ( "LGIP ") In order to provide more clarity with respect to how the Local Government Investment Pool operates, and as a result of recently amended WACS, a prospectus has been created and distributed to all investors in the LGIP The City has been requested to provide an updated resolution referencing these changes ATTACHMENTS Resolution No 3214 Local Government Investment Pool Prospectus dated January 2014 Local Government Investment Pool Transaction Authorization Form FISCAL IMPACTS (Include Budgeted Amount) None STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation STUDY SESSION ACTION © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to adopt Resolution No 3214 authorizing investment of City monies in the Local Government Investment Pool COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 RESOLUTION NO. 3214 A RESOLUTION of the City of Bremerton authorizing investment of City of Bremerton monies in the Local Government Investment Pool WHEREAS, pursuant to Chapter 294, Laws of 1986, the Legislature created a trust fund to be known as the public funds investment account (commonly referred to as the Local Government Investment Pool ( "LGIP ") for the contribution and withdrawal of money by an authorized governmental entity for purposes of investment by the State Treasurer, and WHEREAS, from time to time it may be advantageous to the authorized governmental entity, the City of Bremerton ( "City "), to contribute funds available for investment in the LGIP, and WHEREAS, the City of Bremerton passed Resolution No 2124 authorizing the contribution and withdrawal of City monies in the LGIP and the City now desires to update its authorization by passage of a new resolution, and WHEREAS, the investment strategy for the LGIP is set forth in its policies and procedures, and WHEREAS, any contribution or withdrawals to or from the LGIP made on behalf of the City shall be first duly authorized by the governing body of the City of Bremerton, the "City Council ", in this resolution or a subsequent resolution, and a certified copy of said resolution shall be filed with the State Treasurer's Office, and WHEREAS, the City Council and any designee appointed by the governing body with authority to contribute or withdraw funds of the governmental entity has received and read a copy of the prospectus and understands the risks and limitations of investing in the LGIP, and WHEREAS, the City Council attests by the signature of the President of the City Council on this resolution that it is duly authorized and empowered to enter into this agreement, to contribute or withdraw funds of the City, and to delegate certain authority to make adjustments to the incorporated transactional forms, to the individuals designated herein THE CITY COUNCIL OF THE CITY OF BREMERTON DOES HEREBY RESOLVE AS FOLLOWS SECTION 1 Resolution No 2124 is hereby repealed SECTION 2 The City Council does hereby authorize the contribution and withdrawal of City monies in the LGIP in the manner prescribed by law, rule, and prospectus SECTION 3 That the City Council has approved the Local Government Investment Pool Transaction Authorization Form ( "Form ") as substantially completed by the City Treasurer, Catherine A Johnson, attached hereto as Exhibit A and incorporated herein by this 1 LGIP — Authonzing Investment F reference, and does hereby attest to its accuracy SECTION 4. That the City designates Catherine A Johnson, the seated Treasurer of the City as the "Authorized Individual" to authorize all amendments, changes, or alterations to the Form or any other documentation including designating other individuals to make contributions and withdrawals on behalf of the City SECTION S That this delegation ends upon the termination of the authorized individual's relationship with the City or further action by the City Council terminating the delegation, in which case, the City will notify the State Treasurer's Office immediately upon the replacement of the Treasurer of the City which replacement shall than serve as the Authorized Individual SECTION 6 That the Form as incorporated into this resolution or hereafter amended by delegated authority, or any other documentation signed or otherwise approved by the authorized individual shall remain in effect should the authorized individual's authority be terminated or otherwise end, except to the extent that the authorized individual whose delegation has been terminated shall not be permitted to make further withdrawals or contributions to the LGIP on behalf of the City No amendments, changes, or alterations shall be made to the Form or any other documentation until the Treasurer of the City is replaced who shall then serve as the new Authorized Individual SECTION 7 That the City Council acknowledges that it has received, read, and understood the prospectus as provided by the Office of the State Treasurer In addition, the City agrees that a copy of the prospectus will be provided to any person delegated or otherwise authorized to make contributions or withdrawals into or out of the LGIP and that said individuals will be required to read the prospectus prior to making any withdrawals or contributions or any further withdrawals or contributions if authorizations are already in place SECTION 8 Severabalaty 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 9 Effectave 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 , 2014 GREG WHEELER, Council President APPROVED AS TO FORM ATTEST ROGER A LUBOVICH, City Attorney SHANNON L CORIN, City Clerk R \ Legal \Legal\Resolutions\Finance \LGIP Investment Authonzanon docx 2 LGIP — Authonzing Investment LOCAL GOVERNMENT INVESTMENT POOL Prospectus January 2014 R Off,S 9� x* El ❑ O . ING` James L. McIntire Washington State Treasurer Contents I The LGIP 3-4 II Local Government Investment Pool — Money Market Fund 4 -9 III Management 9 IV Miscellaneous 9 -10 2 I The LGIP The Local Government Investment Pool (the "LGIP ") is an investment pool of public funds placed in the custody of the Office of the Washington State Treasurer (the "State Treasurer") for investment and reinvestment as defined by RCW 43 250 020 The purpose of the LGIP is to allow eligible governmental entities to participate with the state in the investment of surplus public funds, in a manner that optimizes liquidity and return on such funds In establishing the LGIP, the legislature recognized that not all eligible governmental entities are able to maximize the return on their temporary surplus funds, and therefore it provided a mechanism whereby they may, at their option, utilize the resources of the State Treasurer to maximize the potential of their surplus funds while ensuring the liquidity of those funds The State Treasurer has established a sub -pool within the LGIP whose shares are offered by means of this Prospectus The LGIP -Money Market Fund (the "LGIP -MMF" or the "Fund ") The State Treasurer has the authority to establish additional sub -pools in the future The Fund offered in this Prospectus seeks to provide current income by investing in high - quality, short term money market instruments These standards are specific to the Fund, as illustrated in the following table The LGIP -MMF offers daily contributions and withdrawals FUND SNAPSHOT The table below provides a summary comparison of the Fund's investment types and sensitivity to interest rate risk This current snapshot can be expected to vary over time LGIP -Money Market Fund Cash 60 days Current Investments (as of November Bank Deposits 1, 2013) US Treasury bills Repurchase agreements US Government agency obligations Fees and Expenses Administrative Fee The State Treasurer charges pool participants a fee representing administration and recovery costs associated with the operation of the Fund The administrative fee accrues daily from pool participants' earnings prior to the earnings being posted to their account The administrative fee will be paid monthly In the event that there are no earnings, the administrative fee will be deducted from principal The chart below illustrates the operating expenses of the LGIP -MMF for past years, expressed in basis points as a percentage of fund assets 3 Local Government Investment Pool -MMF Operating Expenses by Fiscal Year (in Basis Points) 2006 2007 2008 2009 2010 2011 2012 2013 Total Operating Expe 1 0 96 0 84 0 88 0 64 0 81 068 087 (l basis point = 0 01 %) Because most of the expenses of the LGIP -MMF are fixed costs, the fee (expressed as a percentage of fund assets) will be affected by (i) the amount of operating expenses, and (ii) the assets of the LGIP -MMF The table below shows how the fee (expressed as a percentage of fund assets) would change as the fund assets change, assuming an annual fund operating expenses amount of $800,000 Fund Assets $6 0 bn $8 0 bn $10 0 bn Total Operating Expenses (in Basis Points) 133 10 80 Portfolio Turnover The Fund does not pay a commission or fee when it buys or sells securities (or "turns over" its portfolio) However, debt securities often trade with a bid /ask spread Consequently, a higher portfolio turnover rate may generate higher transaction costs that could affect the Fund's performance II Local Government Investment Pool - Money Market Fund Investment Objective The LGIP -MMF will seek to effectively maximize the yield while maintaining liquidity and a stable share price of $1 Principal Investment Strategies The LGIP -MMF will seek to invest primarily in high - quality, short term money market instruments Typically, at least 55% of the Fund's assets will be invested in US government securities and repurchase agreements collateralized by those securities The LGIP -MMF means a sub -pool of the LGIP whose investments will primarily be money market instruments The LGIP -MMF will only invest ineligible investments permitted by state law The LGIP -MMF will not be an SEC- registered money market fund and will not be required to follow SEC Rule 2a -7 Investments of the LGIP -MMF will conform to the LGIP Investment Policy, the most recent version of which will be posted on the LGIP website and will be available upon request Principal Risks of Investing in the LGIP -Money Market Fund Counterparty Credit Risk A party to a transaction involving the Fund may fail to meet its obligations This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategies Interest Rate Risk The LGIP -MMF's income may decline when interest rates fall Because the Fund's income is based on short-term interest rates, which can fluctuate significantly over short periods, income risk is expected to be high In addition, interest rate increases can cause the price of a debt security to decrease and even lead to a loss of principal 4 Liquidity Risk Liquidity risk is the risk that the Fund will experience significant net withdrawals of Fund shares at a time when it cannot find willing buyers for its portfolio securities or can only sell its portfolio securities at a material loss Management Risk Poor security selection or an ineffective investment strategy could cause the LGIP -MMF to underperform relevant benchmarks or other funds with a similar investment objective Issuer Risk The LGIP -MMF is subject to the risk that debt issuers and other counterparties may not honor their obligations Changes in an issuer's credit rating (e g, a rating downgrade) or the market's perception of an issuer's creditworthiness could also affect the value of the Fund's investment in that issuer The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation Also, a decline in the credit quality of an issuer can cause the price of a money market security to decrease Securities Lending Risk and Reverse Repurchase Agreement Risk The LGIP -MMF may engage insecurities lending or in reverse repurchase agreements Securities lending and reverse repurchase agreements involve the risk that the Fund may lose money because the borrower of the Fund's securities fails to return the securities in a timely manner or at all or the Fund's lending agent defaults on its obligations to indemnify the Fund, or such obligations prove unenforceable The Fund could also lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral Risks Associated with use of Amortized Cost The use of amortized cost valuation means that the LGIP -MMF's share price may vary from its market value NAV per share In the unlikely event that the State Treasurer were to determine that the extent of the deviation between the Fund's amortized cost per share and its market -based NAV per share may result in material dilution or other unfair results to shareholders, the State Treasurer may cause the Fund to take such action as it deems appropriate to eliminate or reduce to the extent practicable such dilution or unfair results An investment in the LGIP -MMF is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency Although the Fund seeks to preserve the value of investments at $1 per share, pool participants could lose money by investing in the LGIP -MMF There is no assurance that the LGIP -MMF will achieve its investment objective Performance The following information is intended to address the risks of investing in the LGIP -MMF The information illustrates changes in the performance of the LGIP -MMF's shares from year to year Returns are based on past results and are not an indication of future performance Updated performance information may be obtained on our website at www tre wo gov or by calling the LGIP toll -free at 800 - 331 -3284 5 Fiscal Y Local 600% 500% 4 400% 300% 213% 200% 146% 100% F 105% 000% -100% -200% -300% 2003 2004 2005 2 Local Government Investment Pool -Money Market Fund Averaae Accrued Net Yield 1 Year 3 years S years 10 years 017% 019% 52% 194% Transactions LGIP -MMF General Information The minimum transaction size (contributions or withdrawals) for the LGIP -MMF will be five tho State Treasurer may, in its sole discretion, allow for transactions of less than five thousand doll. Valuing Shares The LGIP -MMF will be operated using a net asset value (NAV) calculation based on the amortize securities held such that the securities will be valued at their acquisition cost, plus accrued inco daily The Fund's NAV will be the value of a single share NAV will normally be calculated as of the cic the NYSE, usually 4 00 p m Eastern time If the NYSE is closed on a particular day, the Fund will next day the NYSE is open 6 NAV will not be calculated and the Fund will not process contributions and withdrawals submitted on days when the Fund is not open for business The time at which shares are priced and until which contributions and withdrawals are accepted is specified below and may be changed as permitted by the State Treasurer To the extent that the LGIP -MMF's assets are traded in other markets on days when the Fund is not open for business, the value of the Fund's assets may be affected on those days In addition, trading in some of the Fund's assets may not occur on days when the Fund is open for business Transaction Limitation The State Treasurer reserves the right at its sole discretion to set a minimum and /or maximum transaction amount from the LGIP -MMF and to limit the number of transactions, whether contribution, withdrawal, or transfer permitted in a day or any other given period of time The State Treasurer also reserves the right at its sole discretion to reject any proposed contribution, and in particular to reject any proposed contribution made by a pool participant engaged in behavior deemed by the State Treasurer to be abusive of the LGIP -MMF A pool participant may transfer funds from one LGIP -MMF account to another subject to the same time and contribution limits as set forth in WAC 210 10 060 Contributions Pool participants may make contributions to the LGIP -MMF on any business day All contributions will be effected by electronic funds transfer to the account of the LGIP -MMF designated by the State Treasurer It is the responsibility of each pool participant to pay any bank charges associated with such electronic transfers to the State Treasurer Failure to wire funds by a pool participant after notification to the State Treasurer of an intended transfer will result in penalties Penalties for failure to timely wire will be assessed to the account of the pool participant responsible Notice To ensure same day credit, a pool participant must inform the State Treasurer of any contribution over one million dollars no later than 9 a m on the same day the contribution is made Contributions for one million dollars or less can be requested at any time prior to 10 a m on the day of contribution For all other contributions over one million dollars that are requested prior to 10 a m , a pool participant may receive same day credit at the sole discretion of the State Treasurer Contributions that receive same day credit will count, for earnings rate purposes, as of the day in which the contribution was made Contributions for which no notice is received prior to 10 00 a m will be credited as of the following business day Notice of contributions may be given by calling the Local Government Investment Pool (800- 331 -3284) OR by logging onto State Treasurer's Treasury Management System ( "TMS ") Please refer to the LGIP -MMF Operations Manual for specific instructions regarding contributions to the LGIP -MMF Direct deposits from the State of Washington will be credited on the same business day Pricing Contribution requests received in good order will receive the NAV per unit of the LGIP -MMF next determined after the order is accepted by the State Treasurer on that contribution date Withdrawals Pool participants may withdraw funds from the LGIP -MMF on any business day Each pool participant shall file with the State Treasurer a letter designating the financial institution at which funds withdrawn from the LGIP -MMF shall be deposited (the "Letter") This Letter shall contain the name of the financial institution, the location of the financial institution, the account name, and the account number to which funds will be deposited This Letter shall be signed by local officials authorized to receive and disburse funds, as described in WAC 210 -10 -020 7 Disbursements from the LGIP -MMF will be effected by electronic funds transfer Failure by the State Treasurer to wire funds to a pool participant after proper notification to the State Treasurer to disburse funds to a pool participant may result in a bank overdraft in the pool participant's bank account The State Treasurer will reimburse a pool participant for such bank overdraft penalties charged to the pool participant's bank account Notice In order to withdraw funds from the LGIP -MMF, a pool participant must notify the State Treasurer of any withdrawal over one million dollars no later than 9 a m on the same day the withdrawal is made Withdrawals for one million dollars or less can be requested at any time prior to 10 a m on the day of withdrawal For all other withdrawals from the LGIP -MMF over one million dollars that are requested prior to 10 a m , a pool participant may receive such withdrawal on the same day it is requested at the sole discretion of the State Treasurer No earnings will be credited on the date of withdrawal for the amounts withdrawn Notice of withdrawals maybe given by calling the Local Government Investment Pool (800- 331 -3284) OR by logging on to TMS Please refer to the LGIP -MMF Operations Manual for specific instructions regarding withdrawals from the Fund Pricing Withdrawal requests with respect to the LGIP -MMF received in good order will receive the NAV per unit of the LGIP -MMF next determined after the order is accepted by the State Treasurer on that withdrawal date Suspension of Withdrawals If the State Treasurer has determined that the deviation between the Fund's amortized cost price per share and the current net asset value per share calculated using available market quotations (or an appropriate substitute that reflects current market conditions) may result in material dilution or other unfair results, the State Treasurer may, if it has determined irrevocably to liquidate the Fund, suspend withdrawals and payments of withdrawal proceeds in order to facilitate the permanent termination of the Fund in an orderly manner The State Treasurer will distribute proceeds in liquidation as soon as practicable, subject to the possibility that certain assets may be illiquid, and subject to subsequent distribution, and the possibility that the State Treasurer may need to hold back a reserve to pay expenses The State Treasurer also may suspend redemptions if the New York Stock Exchange suspends trading or closes, if US bond markets are closed, or if the Securities and Exchange Commission declares an emergency If any of these events were to occur, it would likely result in a delay in the pool participants' redemption proceeds The State Treasurer will notify pool participants within five business days of making a determination to suspend withdrawals and /or irrevocably liquidate the fund and the reason for such action Farnings and Distribution LGIP -MMF Daily Factor The LGIP -MMF daily factor is a net earnings figure that is calculated daily using the investment income earned (excluding realized gains or losses) each day, assuming daily amortization and /or accretion of income of all fixed income securities held by the Fund, less the administrative fee The daily factor is reported on an annualized 7 -day basis, using the daily factors from the previous 7 calendar days The reporting of a 7 -day annualized yield based solely on investment income which excludes realized gains or losses is an industry standard practice that allows for the fair comparison of funds that seek to maintain a constant NAV of $100 LGIP -MMF Actual Yield Factor The LGIP -MMF actual yield factor is a net daily earnings figure that is calculated using the total net earnings including realized gains and losses occurring each day, less the administrative fee 8 Dividends The LGIP -MMF's dividends include any net realized capital gains or losses, as well as any other capital changes other than investment income, and are declared daily and distributed monthly Distribution The total net earnings of the LGIP -MMF will be declared daily and paid monthly to each pool participant's account in which the income was earned on a per -share basis These funds will remain in the pool and earn additional interest unless withdrawn and sent to the pool participant's designated bank account as specified on the Authorization Form Interest earned will be distributed monthly on the first business day of the following month Monthly Statements and Reporting On the first business day of every calendar month, each pool participant will be sent a monthly statement which includes the pool participant's beginning balance, contributions, withdrawals, transfers, administrative charges, earnings rate, earnings, and ending balance for the preceding calendar month Also included with the statement will be the monthly enclosure This report will contain information regarding the maturity structure of the portfolio and balances broken down by security type Ili. Management The State Treasurer is the manager of the LGIP -MMF and has overall responsibility for the general management and administration of the Fund The State Treasurer has the authority to offer additional sub -pools within the LGIP at such times as the State Treasurer deems appropriate in its sole discretion Administrator and Transfer Agent The State Treasurer will serve as the administrator and transfer agent for the Fund Custodian A custodian for the Fund will be appointed in accordance with the terms of the LGIP Investment Policy IV. Miscellaneous Limitation of Liability All persons extending credit to, contracting with or having any claim against the Fund offered in this Prospectus shall look only to the assets of the Fund that such person extended credit to, contracted with or has a claim against, and none of (i) the State Treasurer, (ii) any subsequent sub -pool, (iii) any pool participant, Livj the LGIP, or (vj the State Treasurer's officers, employees or agents (whether past, present or future), shall be liable therefor The determination of the State Treasurer that assets, debts, liabilities, obligations, or expenses are allocable to the Fund shall be binding on all pool participants and on any person extending credit to or contracting with or having any claim against the LGIP or the Fund offered in this Prospectus There is a remote risk that a court may not enforce these limitation of liability provisions 9 Amendments This Prospectus and the attached Investment Policy maybe amended from time to time Pool participants shall receive notice of changes to the Prospectus and the Investment Policy The amended and restated documents will be posted on the State Treasurer website www tre wa Qov Should the State Treasurer deem appropriate to offer additional sub -pools within the LGIP, said sub -pools will be offered by means of an amendment to this prospectus LGIP -MMF Contact Information Internet www tre wa sov Treasury Management System{TMS Phone 1- 800 - 331 -3284 (within Washington State) Mad Office of the State Treasurer Local Government Investment Pool PO Box 40200 Olympia, Washington 98504 FAX 360 - 902 -9044 10 AGENDA BILL SIM CITY OF BREMERTON CITY COUNCIL ■■ eeeeeeeeeeoaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeoeeeeeeeeeeeeeeeeeeee SUBJECT Staffing Adjustments— Financial Study Session Date February 26, 2014 Services Department COUNCIL MEETING Date March 5, 2014 Department Financial Services Presenter Cathy Johnson Phone 473 -5296 SUMMARY Since the presentation of the 2014 budget circumstances have changed that require an adjustment to the Financial Services budget Requested changes include reallocation of funds between budget categories for temporary staffing, the reallocation of one position to Public Works and the addition of another position with the expertise necessary for the oversight of day to day finance operations, budgeting and financial reporting The attached Council Summary outlines each of the requested actions and the financial impact to the department and the General fund ATTACHMENTS Council Summary— Financial Services Staffing Adjustments FISCAL IMPACTS (Include Budgeted Amount) A total increase to the 2014 General fund budget of $507 to be funded from ending fund balance STUDY SESSION AGENDA © No Presentation ❑ Full Presentation STUDY SESSION ACTION © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve an increase of $34,550 to the 2014 Financial Services budget, a decrease of $34,043 to the Human Resources budget and authorize the transfer of 1 FTE Accounting Assistant Sr to the Public Works department, the addition of 1 FTE Accountant/Financial Analyst and 37 FTE temporary clerical to Financial Services COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 COUNCIL SUMMARY FINANCIAL SERVICES STAFFING ADJUSTMENTS Since the presentation of the 2014 budget circumstances have changed that require an adjustment to the Financial Services budget Following are the requested changes and a summary of the financial impact to the department and the General fund 1) Redirect the portion of Director allocated to Human Resources to the Financial Services budget The 2014 budget was prepared with a portion of the Financial Services Director position allocated to the Human Resources budget Ordinance 5232, passed on November 20, 2013, changed the reporting for the Department of Human Resources to the City Attorney 2) Add 37 FTE for temporary position to assist with implementing new Landlord licensing requirements The 2014 budget anticipated that this would be a contracted position 3) Reallocate personnel savings from vacant Director position to Supplies and Services to help pay for contracted Accountant hired to assist with accounting and reporting duties 4) Change authorized staffing to transfer 1 FTE Accounting Assistant Senior to Public Works Administration and add 1 FTE Accountant /Financial Analyst In 2012 an Accounting Assistant Sr as well as the Public Works Financial Manager were reassigned to the Financial Services Department reducing the administrative staff in Public Works Administration The duties of both positions continue to be focused on the needs of Public Works departments The move of the AA Sr has restricted the ability of PW Admin to provide needed backup for accounts payable and payroll processing as well as to meet the clerical needs of the Administrative division This ongoing need directly impacts the timeliness of data provided to Financial Services The addition of the Accountant /Financial Analyst will provide additional technical expertise necessary for the over site of day to day Financial operations, budgeting and financial reporting The Financial Analyst position would not be filled until June allowing continuity in the completion of the Comprehensive Annual Financial report with the contract employee currently in place An additional need, not addressed in this request, is for additional resources for the City Clerk function Staffing was reduced by 1FTE in 2011 which has severely impacted the ability of Clerk to perform all the duties required of the function There is currently not a designated deputy to act in the absence of the Clerk This item will be addressed during the 2015 budget discussions The budget impact of the above requests are summarized in the following table Amended 2014 2014 Budget Housekeeping Restructure Proposed Change FINANCIAL SERVICES Personnel $ 1,041,000 $ 1,041,000 Di re ctor Sa I a ry From HR (1) 34,043 34,043 Tax and License Extra Help (2) 13,000 13,000 Vacancy savings - Director 3mo (3) - 42,500 - 42,5 Deputy City Clerk - Acctg Asst Sr- reduction 1FTE (9 mo) (4) - 63,333 - 63,333 Financial Ana lyst /Acct- add 1FTE(6mo)(4) 52,000 52,000 Total Personnel 1,041,000 4,543 - 11,333 1,034,210 -6,790 Supplies, services and taxes 314,912 314,912 Tax and License Extra Help (2) - 13,000 13,000 Contract Accounting Assistance (3) 54,340 54,340 Total Supplies, services and taxes 314,912 41,340 0 356,252 41,340 Total Financial Services Budget $ 1,355,912 $ 45,883 $ (11,333) $ 1,390,462 $ 34,550 HUMAN RESOURCES Personnel (1) $ 242,000 $ (34,043) $ 207,957 Supplies, services and taxes 154,814 154,814 Total Human Resources Budget $ 396,814 $ (34,043) $ - $ 362,771 $ (34,043) Net Increase $ 507 AGENDA BILL 47A CITY OF BREMERTON CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SUBJECT Public Hearings (2) to approve Study Session Date Feb 26 & Mar 12, 2014 Sub - concession and Future Assignment of COUNCIL MEETING Date March 5 & 19, 2014 the Olympic Soccer & Sports Center (OSSC) Department Parks & Recreation Concession Agreement Presenter Wyn Birkenthal Phone 473 -5752 SUMMARY Olympic Soccer and Sports Center LLC (OSSC) has operated the indoor soccer facility at Pendergast Park under a Concession Agreement for the property with the City since 2001 OSSC has expressed a desire to grant a sub - concession for the operations of the facility to Keystone Financial Management Inc Keystone intends to raise money through private investors to purchase the buildings and improvements by the conclusion of the 3 -year Sub - concession term, at which time OSSC would assign the Concession Agreement to Keystone City Council approval is required for the proposed Sub - concession and Future Assignment of the Concession Agreement Ownership of the underlying property upon which the improvements are located does not change and will remain with the City ATTACHMENTS Sub - concession and Assignment of the Concession Agreement with attached Exhibit A — First Amended Concession Agreement Exhibit B — Memorandum of First Amended Concession Agreement Report -fww. paxks PecrG � FISCAL IMPACTS (Include Budgeted Amount) Fiscal Impacf STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation STUDY SESSION ACTION ❑ Consent Agenda ❑ General Business ® Public Hearings (2) RECOMMENDED MOTION March 5 — No Action March 19 — Move to approve the sub - concession and future assignment of the Pendergast Indoor Soccer Center Concession Agreement from Olympic Soccer and Sports Center LLC to Keystone Financial Management Inc , or wholly owned subsidiary thereof, and authorize the Mayor to finalize and execute the proposed agreement and any other related agreements to finalize the proposed transactions with substantially the same terms and conditions as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 SUB - CONCESSION AND ASSIGNMENT OF CONCESSION AGREEMENT THIS AGREEMENT authorizes the sub - concession and future assignment of the First Amended Concession Agreement entered into between the City of Bremerton ( "City") and Olympic Soccer & Sports Center, LLC ( "Olympic "), to Keystone Financial Management ( "Keystone ") WHEREAS, the City granted a concession to Olympic pursuant to the First Amended Concession Agreement Between the City of Bremerton and Olympic Soccer & Sports Center, LLC executed October 30, 2006 ( "Concession Agreement ") for the premises legally described in Exhibit A, attached hereto and incorporated herein by this reference, and WHEREAS, a Memorandum of First Amended Concession Agreement was recorded on December 6, 2006 set forth in Exhibit B, and WHEREAS, Olympic desires to grant to Keystone, and Keystone desires to accept, a sub - concession of the Concession Agreement ( "Sub- concession ") as set forth herein, and WHEREAS, Keystone and Olympic have entered into an agreement whereby Keystone would acquire all interest in the assets of Olympic in the future including the assignment of the Concession Agreement to Keystone WHEREAS, the City's consent to a sub - concession and future assignment of the Concession Agreement is required to complete the acquisition by Keystone NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration received, and with the intent to be legally bound, the parties agree as follows I SUB - CONCESSION 1. Olympic hereby grants a Sub - concession of the Concession Agreement and all of its right, title, and interest thereunder to Keystone and Keystone hereby accepts such Sub - concession Keystone shall have all of the rights of Olympic under the Concession except the right of assignment, except as provided herein For purposes of this agreement, Keystone shall also include any wholly owned subsidiary thereof 2 The term of the Sub- concession shall expire February 28, 2017 3. During the term of the Sub - concession, Keystone hereby assumes and agrees to be bound by all of Olympic's obligations under the Concession Agreement Keystone shall perform all the terms, covenants, and conditions of the Concession Agreement, including the payment of rent and any other required amounts to City, after the date hereof 1 4 Keystone shall indemnify and hold Olympic harmless from any and all claims, damages, expenses, and liabilities of whatever nature, including attorney's fees, arising under the Concession Agreement or relating to the Premises during the term of the Sub - concession 5. Keystone shall not assign the Concession Agreement or sublet all or any portion of the Premises without the prior written consent of City pursuant to Section 8 7 of the Concession Agreement 6. Except as specifically modified herein, the Concession Agreement will continue in full force and effect II FUTURE ASSIGNMENT 1. Keystone and Olympic intend to work together during the tern of the Sub - concession Agreement to enter into an agreement whereby Keystone would acquire all interest in the assets of Olympic in the future including the assignment of the Concession Agreement to Keystone Any assignment of the Concession Agreement would have to be completed by the date of termination of the sub - concession For purposes of this assignment, Keystone shall also include any wholly owned subsidiary thereof 2. Upon assignment of the Concession Agreement, Keystone shall indemnify and hold Olympic harmless from any and all claims, damages, expenses and liabilities of whatever nature, including attorney's fees, arising under the Concession Agreement or relating to the Premises 3 Upon assignment of the Concession Agreement, Keystone shall be responsible to the City for the full and faithful performance of the Concession Agreement, including, but not limited to, the insurance provisions of Section 8 5 and indemnification provisions of Section 8 6 of the agreement 4 Pursuant to Section 8 7 of the Concession Agreement, Olympic shall remain responsible to the City for the full and faithful performance of the Concession Agreement upon its assignment to Keystone III CITY'S CONSENT TO SUB - CONCESSION AND FUTURE ASSIGNMENT 1. City hereby consents to the sub - concession of the Concession Agreement set forth herein from Olympic to Keystone The City's consent to the granting of a sub - concession does not relieve Olympic of any of the duties and obligations of the Concession Agreement to the City 2 City hereby consents to the future Assignment of Concession Agreement from Olympic to Keystone or a subsidiary thereof Any assignment shall occur during the term of the Sub - concession set forth above If an assignment of the Concession Agreement from Olympic to Keystone is not completed by the date of termination of the sub - concession from Olympic to Keystone as provided in this agreement, this agreement expires and Keystone shall not have any 2 fiirther interest in this agreement, including, but not limited to, any sub - concession or assignment of the premises 3 By executing this Agreement, the City is only consenting to the Sub - concession and future assignment of the Concession Agreement and does not assume any obligations of Olympic or Keystone with respect to the Sub - concession or assignment 4 As noted is Section II(4) above, the City's consent to the granting of an assignment does not relieve Olympic of any of the duties and obligations of the Concession Agreement to the City IV EFFECTIVE DATE OF SUB - CONCESSION AND ASSIGNMENT. 1. The sub - concession granted herein shall become effective upon the date this agreement is fully executed by the parties hereto 2. The assignment of the Concession Agreement shall become effective upon execution of written documentation of the assignment, executed by the parties hereto The City's execution of such documentation by the Mayor is conditioned upon the Mayor's determination that a) Olympic and Keystone are in compliance with the terms and conditions of this agreement, and b) Olympic and Keystone not in default of the Concession Agreement at the time of assignment If the above conditions are not met, further review and approval by City Council is required This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective heirs, legal representatives, successors, and assigns IN WITNESS WHEREOF, this Agreement is executed on the date fully executed below OLYMPIC SOCCER & SPORTS CENTER, LLC By Its (Notary on next page) 3 STATE OF COUNTY OF In , on the day of , 2014, before me, a Notary Public in and for the above state and county, personally appeared [list mine of Olympic], known to me or proved to be the person named in and who executed the foregoing instrument, and being first duly sworn, such person acknowledged that he or she executed said instrument for the purposes therein contained as his or her free and voluntary act and deed NOTARY PUBLIC My Commission Expires (SEAL) KEYSTONE FINANCIAL MANAGEMENT By Its STATE OF COUNTY OF In , on the day of , 2014, before me, a Notary Public in and for the above state and county, personally appeared [last name of Ke }°stone], known to me or proved to be the person named in and who executed the foregoing instrument, and being first duly sworn, such person acknowledged that he or she executed said instrument for the purposes therein contained as his or her free and voluntary act and deed NOTARY PUBLIC My Commission Expires (SEAL) 4 CITY OF BREMERTON Patty Lent, Mayor STATE OF WASHINGTON COUNTY OF KITSAP In , on the day of , 2014, before me, a Notary Public in and for the above state and county, personally appeared Patty Lent, Mayor of the City of Bremerton, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute the said instrument on behalf of said municipal corporation NOTARY PUBLIC My Commission Expires (SEAL) R \Legal\Legal\Files \Current Active Files \Olympic Soccer\Assignment of Concession Agreement - Keystone\Attachment A Letter of Agreement l -Clean docx 5 EXHIBIT A FIRST AMENDED CONCESSION AGREEMENT BETWEEN THE CITY OF BREMERTON AND OLYMPIC SOCCER & SPORTS CENTER, LLC This First Amended Concession Agreement between the City of Bremerton (CITY) and Olympic Soccer & Sports Center, LLC (CONCESSIONAIRE) specifically amends the Concession Agreement entered into between the parties on June 20, 2001 ( "Concession Agreement ") collectively referred to hereinafter as ( "Agreement ") WHEREAS, CONCESSIONAIRE desires to construct an addition to the current structure to add a second indoor playing field to the facility, and WHEREAS, the CITY has agreed to amend the Concession Agreement to grant additional space to the concession for the second indoor playing field, NOW, THEREFORE, for valuable consideration and by mutual consent of the parties, the Concession Agreement is hereby amended and replaced in its entirety to read in full as follows ARTICLE 1 CONCESSION 1 1 Concession of Premises. 1 1 1 Premises Described. CITY hereby grants a ground and use concession to CONCESSIONAIRE for the Premises, approximately fifty thousand square feet (50,000 sq ft ) of land (hereinafter referred to as "Concession Area ") within the confines of the Pendergast Regional Park and legally described in Exhibit A attached hereto and incorporated by reference This concession is granted for the development, construction, maintenance and operation, for profit, of an indoor athletic facility consisting a permanent structure of approximately fifty thousand square feet (50,000 sq ft ) ) as well as for related fixtures, appurtenances, parking and exterior landscaping (hereinafter referred to as "Improvements "), and generally shown in the preliminary building and site plan in Exhibit B attached hereto and incorporated by reference (Collectively referred to as "Premises ") Premises does not include the fee ownership or leasehold interest of the real property upon which the Premises are located CONCESSIONAIRE hereby agrees to the terms and conditions of this Agreement The PARTIES agree that upon the date of execution of this First amended Concession Agreement, the Premises consists of permanent structure of approximately thirty thousand square feet (30,000 sq ft ) and related improvements, and that the CONCESSIONAIRE intends to construct an addition of approximately twenty thousand square feet (20,000 sq ft ) to the current structure to add a second indoor playing field to the Premises ( "Second Field ") The PARTIES further agree that any and all current or future development and construction of Improvements on the Premises are owned by CONCESSIONAIRE subject to any secunty interest of lender, if any, and subject to the CITY's right, title and interest at the expiration or termination of this Agreement pursuant to Article 2 4 1 The common address of the Premises is 1199 Union Avenue Bremerton WA, 98312 112 Right of Entry In addition to the Premises described above, the CITY grants CONCESSIONAIRE 1) a Right of Entry for ingress and egress to and from the public nght -of- way (Union Avenue) over and upon the City parks properties and roadway to access the Premises and 2) a 15 foot Right of Entry buffer adjacent to and abutting above described Concession Area for maintenance and repair of the Improvements as identified in Exhibit B, (Collectively "Rights of Entry") CONCESSIONAIRE's use of the Rights of Entry granted herein shall not be used in a manner inconsistent with or interfere with the CITY's use of the property CONCESSIONAIRE shall not install any structures or other improvements on the Rights of Entry without the CITY's prior written approval Such approval shall be at the CITY's sole discretion The Rights of Entry shall terminate upon the expiration or termination of this Agreement 12 Possession, Quiet Enjoyment & Covenants. Except as provided in Articles 3 & 4 3 herein, the CONCESSIONAIRE shall be entitled to exclusive possession of the Premises upon commencement of the development and construction of the Premises as defined by Article 5 4 herein Upon taking possession of the Premises, and on performing all the covenants and conditions herein, the CONCESSIONAIRE shall peaceably and quietly have, hold, and enjoy the Premises at all times during the full tern of this Agreement Every covenant in this Agreement shall be deemed and treated to be a covenant running with the Premises during the full term of the Agreement, and shall extend to the heirs, legal representatives, successors, and assigns of the PARTIES No change in CITY's ownership of the Premises, or rights to the payments hereunder, however accomplished, shall operate to enlarge the obligations or reduce the rights of CONCESSIONAIRE No change in CITY's ownership of the Premises shall be binding upon CONCESSIONAIRE for any purpose until CONCESSIONAIRE shall have been given notice thereof ARTICLE 2. TERM OF AGREEMENT 2.1 Term The term of this Agreement shall be fifteen (15) years, commencing June 20, 2001, the EFFECTIVE DATE of this Agreement 2 2 Option to Renew. The CITY agrees to offer the CONCESSIONAIRE three (3) successive ten (10) year options to renew this Agreement, contingent upon 1) CONCESSIONAIRE remaining in full compliance with the terms and conditions of this Agreement and 2) the CITY accepting the level of insurance coverage required in Article 8 5 2 for each new ten (10) year term exercised by CONCESSIONAIRE, which acceptance will not be unreasonably denied Each ten (10) year option to renew shall renew automatically unless CONCESSIONAIRE gives the CITY prior written notice of its desire not to renew or the CITY gives CONCESSIONAIRE prior written notice of CONCESSIONAIRE's failure to be in full compliance with the terms and conditions of this Agreement in which case the CONCESSIONAIRE shall be given the opportunity to cure such default pursuant to Article 7 2 The CONCESSIONAIRE may terminate this Agreement at any time with prior written notice to 2 the CITY The CITY may request a review of insurance coverage required in Article 8 5 2 pursuant to Article 3 12 The CITY may request CONCESSIONAIRE to cure any default and come into full compliance with the terms and conditions of this Agreement at any time pursuant to Article 7 2 The failure of CONCESSIONAIRE to provide prior written notice not to renew or failure of the CITY to accept the level of insurance coverage or cure any default or request full compliance with the terms and conditions of this Agreement shall not constitute a waiver by either party 2 3 Right of First Refusal Upon the expiration of all terms of this Agreement, CONCESSIONAIRE shall have a Right of First Refusal for a new Concession but this right shall only extend to the right to operate a recreation facility similar in scope to the uses identified and authorized in Article 4 1 1 of this Agreement and only if the CITY requests such use in its solicitation for a concessionaire for the Premises If the City desires a different use for the Premises, then CONCESSIONAIRE shall not have a Right of First Refusal 2 4 Improvements - Expiration or Termination of Agreement Upon the expiration of the term(s) of this Agreement or upon the termination of this Agreement, other than as a result of condemnation proceedings, the then existing Improvements on the Premises will become the property of and owned by the CITY and the CITY shall have all right, title and interest in the same ARTICLE 3. CONSIDERATION 3 1. Consideration for Concession. 3 11 Cash and Premises Use. As consideration for the ground and use concession granted by the CITY to the CONCESSIONAIRE by Article 1 herein, the CONCESSIONAIRE shall provide fair and equitable compensation to the CITY in the form of cash payments and hours of use of the Premises, subject to Article 3 14 of this Agreement Premises use by the CITY shall be governed by Article 3 3 herein Consideration shall be established pursuant to a formula including the square footage value of the Concession Area, parking use, outdoor lighting costs and hours of use of the Premises by the City as set forth in Exhibit C Based upon Exhibit C, the CONCESSIONAIRE shall provide the CITY with an annual total of 150 hours of Premises use and further shall pay the CITY One Thousand Dollars and No Cents ($1000 00) per month beginning on the first full month following the month a certificate of occupancy is issued to CONCESSIONAIRE for the Second Field The Premises use shall be per hour per field, said kinds of use to be determined at the sole discretion of the CITY The monthly cash payment shall be adjusted every year during the term(s) of this Agreement based upon the prior years' Consumer Price index (CPI) for all urban consumers as published by the United States Department of Labor for Seattle- Tacoma - Bremerton, all items (1982 -84 -100) For purposes of the CPI adjustment, the base shall be the June 2006 CPI index June to June every year (i a June 2006- June 2007) The CPI adjustment shall occur on the following January I" of each year during the term of this Agreement No adjustment, whether an increase or a decrease, shall exceed two percent (2 %) annually CONCESSIONAIRE shall make this payment to the City by 3 the fifteenth day of the month following the end of each month CONCESSIONAIRE may prepay these monthly payments on a quarterly, semi- annual or annual basis or as otherwise approved by the CITY 3.12 Re- Opener of Compensation and Insurance Coverage. At any time within 180 days prior to the beginning of each ten (10) year term or any time after the beginning of any ten (10) year term, either party may request a re- opener of the consideration and leasehold tax set forth in Article 3 and the insurance coverage required in Article 8 5 2 The parties acknowledge that it is the intent to provide no more than one re- opener for each ten (10) year term, or remaining portion thereof if notice to re -open is given after the beginning of the new term, unless the parties mutually agree to additional re- openers Upon such request, the parties will, in good faith, review the consideration, leasehold tax and/or insurance coverage, and further, negotiate and make appropriate adjustments to reflect changes in market values and use of the Premises using as the basis the date and the consideration, leasehold taxes, insurance coverage, use of Premises and other relevant factors which established the figures requested to be reviewed In the event the PARTIES cannot reach an agreement following review and negotiation, the PARTIES agree to mediate the issues in dispute 3 13 Leasehold Excise Tax Pursuant to RCW 82 29A 020(1), concessions fall within the definition of leasehold interest, therefore, even though this Agreement is not for a lease, it is still subject to the leasehold tax set forth in Chapter 82 29A RCW Accordingly, CONCESSIONAIRE agrees to pay, in addition to other taxes and fees pursuant to Article 8 4 2, the leasehold excise tax pursuant to Chapter 82 29A RCW The tax will be based on the current value of use of the property through this Agreement (concession rate value) as set forth in Exhibit C in the amount of $21,000 00 per year Since partial consideration to the City for this property use consists of hours of field use at the Premises established through a formula based upon the current hourly value of field use, no adjustments will be made for the property use or value of field use during the term(s) of this Agreement Therefore, for purposes of assessment and payment of the leasehold tax only, the value of the use of the property ($21,000 00) will be adjusted every five years during the term(s) of this Agreement based upon the prior five years' Consumer Price Index (CPI) for all urban consumers as published by the United States Department of Labor for Seattle- Tacoma - Bremerton, all items (1982 -84 -100) For purposes of the CPI adjustment, the base shall be the June 2002 CPI index June to June every five years (ie June 2002- June 2007) The CPI adjustment shall occur on the following January I" of each year during the term of tins Agreement No adjustment, whether an increase or a decrease, shall exceed two percent (2 %) annually In addition, CONCESSIONAIRE 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 City harmless from the same CONCESSIONAIRE 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 CONCESSIONAIRE may prepay these quarterly payments on a semi - annual or annual basis or as otherwise approved by the CITY 4 31 4 Reversion of Second Field Concession Area and Compensation Unless otherwise agreed to in writing, in the event, the CONCESSIONAIRE is not issued a Certificate of Occupancy for the Second Field by December 31, 2007, the Concession Area as defined in Article 1 1 1 shall automatically revert to the original 30,000 square foot Concession Area defined in the Concession Agreement entered into between the parties on June 20, 2001 plus a 15 foot Right of Entry buffer adjacent to and abutting said 30,000 square feet Concession Area for maintenance and repair of the Improvements as identified in Article 1 12 of this Agreement In addition, the consideration set forth in Article 3 1 1 of this Agreement shall revert to the original annual compensation of 182 hours of PREMISES use as identified in Article 3 3 of the June 20, 2001 Concession Agreement and no cash payments 3 2 Athletic Equipment/Personal Property Use. Premises use by the CITY received as consideration for this Agreement does not include the use by the CITY of any of the CONCESSIONAIRE's athletic equipment or other personal property Use by the CITY of any of the CONCESSIONAIRE's athletic equipment or other personal property will be negotiated separately between the CITY and the CONCESSIONAIRE and is outside the scope of this Agreement 3 3 Timing of Premises Use by CITY The consideration paid by the CONCESSIONAIRE in the form of Premises use by the CITY shall commence accruing from the EFFECTIVE DATE of this Agreement It is mutually understood and agreed that the CITY can receive its full annual compensation of 150 hours of Premises use at any time during the 12 month penod - beginning with the EFFECTIVE DATE of this Agreement and every 12 month period thereafter 3.4 Premises Use by CITY. 3 4 1. Types of Use. The hours of Premises use provided by the CONCESSIONAIRE to the CITY in consideration for this Agreement are intended to provide recreational opportunities of a suitable and compatible nature for the residents of the CITY as part of the Parks and Recreation programs Such Premises use by the CITY shall be without cost to the CITY to the extent of the 150 hours annually, pursuant to Article 3 2 herein 3 4 2 Maintenance & Utility Costs /Clean -Up After Use The CONCESSIONAIRE shall be responsible for all overhead costs, including the utilities and general maintenance, of the Premises during the use of the Premises by the CITY The CITY agrees to clean -up the Premises after each CITY use 3 4 3 Damage, Claims, & Liability. The CITY shall be responsible for all damage or claims that may anse out of the Premises use by any of the CITY's employees, agents, guests, or invitees The CITY, during such periods of use, shall supervise or cause the CITY's employees, agents, guests, or invitees to be supervised The provisions for mutual indemnity, hold harmless, and liability insurance pursuant to Articles 8 5 & 8 6 herein apply during Premises use by the CITY 5 3.5 Scheduling Premises Use by CITY. The CITY and the CONCESSIONAIRE shall meet at times as necessary, to determine how such Premises use hours shall be allocated to the CITY in the upcoming quarter in accordance with the following provisions 3 5 1 Spring and Summer Quarters The CITY shall have the full discretion to determine which hours of Premises use the CITY intends to use during the Spring quarter (April, May, & June) and Summer quarter (July, August, & September) of each year At the CITY's discretion, the CITY has the right to schedule its full annual compensation of 150 hours of Premises USE during the Spring and Summer quarters 3.5 2 Fall and Winter Quarters The CONCESSIONAIRE shall have the full discretion to determine which hours of Premises use the CONCESSIONAIRE intends to use during the Fall quarter (October, November, & December) and Winter quarter (January, February, & March) of each year The CONCESSIONAIRE has the right to schedule the CITY's remaining compensation, if any, of Premises USE not previously scheduled by the CITY during the Spring and Summer quarters 3 6 CITY's Increased Premises Use The CITY shall have the full discretion to determine which hours of the CITY's Premises use will be accounted against the CITY's annual compensation of 150 hours The CITY may increase its hours of Premises use beyond its annual compensation by paying to the CONCESSIONAIRE an hourly rate then in effect by the CONCESSIONAIRE and with scheduling at the discretion of the CONCESSIONAIRE ARTICLE 4. USE & OPERATION OF PREMISES 41 Use of Premises 4.11 Indoor Athletic and Recreational Uses. The CONCESSIONAIRE will use and occupy the Premises throughout the full term of this Agreement for the purpose of providing indoor athletic, educational, entertainment, community activities, and recreational opportunities, all related to the operation of an indoor recreation facility CONCESSIONAIRE shall take reasonable precautions in securing the Premises during the full term of this Agreement 4 12 Incidental Uses. The CONCESSIONAIRE may provide concessions in the form of food and beverage and the sale of incidental items directly related to the use of the recreation facility including, but not limited to, gym equipment, soap, shampoo, and similar shower supplies, and clothing related to athletic pursuits 4 13 Security and Nuisance During Use. The CONCESSIONAIRE shall take reasonable precautions in securing the Premises during the full term of this Agreement The CONCESSIONAIRE shall use the Premises for no unlawful purposes and shall not use or occupy the Premises in any manner, which would constitute a public nuisance or violate State or CITY laws 6 4.2 Operating Hours. The availability of recreational opportunities for CITY residents is a material consideration for this Agreement Accordingly and during the full term of this Agreement, the CONCESSIONAIRE shall continuously conduct and carry on the CONCESSIONAIRE'S permitted uses and shall keep the Premises open for business and cause the CONCESSIONAIRE'S business to be conducted therein during the usual business hours of each and every business day as mutually agreed upon This provision shall not apply if the Premises should be closed and the business of CONCESSIONAIRE is temporarily suspended on account of labor strikes, lockouts, or similar causes beyond the reasonable control of CONCESSIONAIRE, or for maintenance, remodeling, repair, or renovation as approved by the CITY in writing (including approvals of any construction schedules) The CONCESSIONAIRE covenants and agrees to provide sufficient personnel, and to keep the Premises adequately stocked with merchandise, recreational equipment, fixtures, and facilities so as to conduct its business in accordance with sound business practice The CONCESSIONAIRE, in order to keep its business commitments, shall be in operation in accordance with sound business practice 4 3 Entry by CITY. CITY may enter the Premises at all times to inspect, provide services required hereunder, post notices of CONCESSIONAIRE's noncompliance with the provisions of this concession, all without being deemed a constructive eviction Any person or persons who may have an interest in the purpose of CITY's visit may accompany CITY CITY has the right to use any and all means that CITY deems proper to open doors and gates in an emergency in order to obtain entry to the Premises 4 4 Health Inspections CONCESSIONAIRE shall not knowingly commit or willfully permit to be committed any act or thing contrary to the rules and regulations prescribed by the local board of health, or which shall be contrary to the laws, rules or regulations of any federal, state or municipal authority CONCESSIONAIRE shall allow the Bremerton - Kitsap County Health Department to make regular and ordinary inspections of the Premises as said health department may deem proper 4 5 Maintenance, Repair, & Improvements 4 5.1 Maintenance. CONCESSIONAIRE shall, at its sole cost and expense, clean and maintain the Premises, and make repairs, restorations, and replacements to the Premises, including without limitation the heating, ventilating, air conditioning, mechanical, electrical, and plumbing systems, structural roof, walls, and foundations, roof coverings, sprinkling and irrigation systems, playing surfaces and the fixtures and appurtenances to the Premises as and when needed to preserve them in "first class" condition and repair (less normal wear from use) throughout the full term CONCESSIONAIRE shall further keep in repair and maintain as necessary all machinery, equipment and facilities necessary for the playing of sports and the comfort of players CONCESSIONAIRE shall paint the exterior of the buildings (except the metal) with such frequency as may be required to maintain their good, clean appearance All such repairs, restorations, and replacements will be in quality and workmanship at least equal to the original work or installations If CONCESSIONAIRE fails to make such repairs, restorations, or replacements, CITY may make them at the expense of CONCESSIONAIRE and such expense 7 will be paid by CONCESSIONAIRE within fifteen (15) days after delivery of a statement for such expense 4 5.2 Sidewalks Maintenance At its sole cost and expense, CONCESSIONAIRE shall maintain any sidewalks on the Premises in good and presentable condition during the full term of this Agreement, shall be responsible for correcting any unsafe conditions, and shall be responsible for the removal of ice and snow from the sidewalks 4.5 3 Janitorial Services. At its sole cost and expense, CONCESSIONAIRE shall keep the Premises clean, and shall provide sufficient janitonal services to maintain a tidy appearance on and about the Premises CONCESSIONAIRE shall provide landscaping maintenance services, as applicable such that landscaping on the Premises remains healthy, attractive, and well maintained 4.5 4 Repair of Damage. In the event any damage or injury shall occur to the Premises of any kind or nature whatsoever, CONCESSIONAIRE shall promptly cause said damage or injury to be fully repaired at CONCESSIONAIRE'S own cost and expense In the event CONCESSIONAIRE fails to accomplish such repairs within fifteen (15) days of receipt of written notice by the CITY, then in that event CITY may, but is not required to, enter the Premises and accomplish such repairs and bill CONCESSIONAIRE who will pay the bill within 4 fifteen (15) days after delivery of a statement for such expense 4 5.6 Improvements. The CONCESSIONAIRE shall be solely responsible for providing adequate funding for any alterations or improvements as provided in this Agreement and such alterations or improvements shall be made without cost to the CITY 4 5.7 Alterations of Premises after Construction. After such time as the Premises have been completed and accepted as defined above, the CONCESSIONAIRE shall not make any material alteration to the Premises including any changes to the landscaping, without the CITY'S prior written consent 4 6 Signs CONCESSIONAIRE may place and maintain signs upon the Premises in accordance with applicable sign and zoning codes of the CITY 4.7 Utilities. 4.71 Utility Services and Expense. The CONCESSIONAIRE will pay for all water, gas, garbage, sewage, electricity, telephone, and other utilities and communications services used by CONCESSIONAIRE on the Premises, whether or not such services are billed directly to CONCESSIONAIRE CONCESSIONAIRE will also procure, or cause to be procured, without cost to the CITY, any and all necessary permits, licenses, or other authorizations required for the lawful and proper installation and maintenance upon the Premises of utility appurtenances and appliances for use in supplying such utilities and services to and upon the Premises The CITY, upon request of CONCESSIONAIRE, and at the sole expense and liability of the 8 CONCESSIONAIRE, will join with CONCESSIONAIRE in any application required for obtaining or continuing any such services, provided that such services do not violate any other applicable provision of this Agreement The CITY shall not be held liable for any injury, loss, or damage caused by or resulting from any interruption or failure of utility services due to any cause whatsoever, except the CITY's sole negligence CONCESSIONAIRE shall not be entitled to any offset, reduction, or return of consideration as a result of any interruption or failure of services 4 7 2 Trash & Garbage The CONCESSIONAIRE shall place all trash and garbage into such areas and containers as are designed and intended to accommodate the trash and garbage generated within or on the Premises The CONCESSIONAIRE shall not allow trash and/or garbage to accumulate such that a nuisance or health hazard results 4.8 Parking. The CITY will be responsible to provide adequate parking to support the Premises and its operations 4.9 Hazardous Substances. 4 9 1 Definition. As used herein, the term "Hazardous Substance" means any hazardous, toxic, or dangerous substance, waste, or material, which is or becomes regulated under any federal, state, or local statute, ordinance, rule, regulation, or other law now or hereafter in affect pertaining to environmental protection, contamination, or cleanup 4.9 2 Information CONCESSIONAIRE shall keep upon the Premises, in a location accessible to CITY, on request during normal business hours, copies of all reports regarding hazardous or toxic materials in the Premises that CONCESSIONAIRE has provided to any governmental agency in the previous quarter CONCESSIONAIRE shall, upon request and at CONCESSIONAIRE'S expense, provide CITY with a copy of any such report as to which CITY request a copy In the event of any accident, spill, or other incident involving hazardous or toxic matter that CONCESSIONAIRE is required to report to any governmental agency, CONCESSIONAIRE shall immediately report the same to the CITY and supply CITY with all information and reports with respect to the same, together with CONCESSIONAIRE'S clean -up or remediation plan and schedule If such clean-up or remediation plan is not acceptable to CITY in CITY'S sole discretion, CITY may so notify CONCESSIONAIRE and, upon 48 hours prior written notice (or without notice if so required by an emergency) may enter on the Premises to conduct the cleanup or remediation and charge CONCESSIONAIRE the costs thereof All information described herein shall be provided to CITY regardless of any claim by CONCESSIONAIRE that it is confidential or privileged, provided that the CITY shall not publish or disclose the information to any third party except as pursuant to Chapter 42 56RCW 4.9 3 Indemnification. CONCESSIONAIRE agrees to hold harmless, protect, indemnify, and defend CITY from and against any damage, loss, claim, or liability, INCLUDING Attorney's fees and costs, resulting from CONCESSIONAIRE'S use, disposal, transportation, generation, and/or sale of any Hazardous Substances The CITY agrees to hold 9 harmless, protect, indemnify, and defend CONCESSIONAIRE from and against any damage, loss, claim, or liability, including attorney's fees and costs, resulting from (a) Hazardous Substances existing on the Premises as of the EFFECTIVE DATE of this Agreement, or (b) Hazardous Substances thereafter used, disposed of, or generated on the Premises by the CITY These indemnities will survive the termination of this Agreement, whether by expiration of the Term or otherwise 410 Risk of Loss All personal property of any kind or description whatsoever in the Premises shall be at the CONCESSIONAIRE's sole risk, and CITY shall not be liable for any damage done to, or loss of, such personal property However, CONCESSIONAIRE is not responsible for losses or claims of stolen property under the care and contol of the CITY during the CITY'S use periods ARTICLE 5. DESIGN & CONSTRUCTION OF PREMISES 5.1 Design. The CONCESSIONAIRE shall retain a licensed architect or licensed professional engineer, registered in the State of Washington (hereinafter referred to as the DESIGN ENGINEER), who shall design the indoor athletic facility, the Second Field and other related Improvements The CITY shall have the right to approve the final design of the Improvements and shall have a continuing right to approve the exterior color of any structure on the Premises CONCESSIONAIRE shall comply with the Americans with Disabilities Act of 1990 (ADA) in the design, construction, and operation of the Premises 5 2 Building & Site Plans. The CONCESSIONAIRE shall retain a licensed architect or licensed professional engineer, registered in the State of Washington, to prepare building and site plans for the Premises, which shall reference the structure, the Second Field and other related Improvements, utilities generally, and landscape plan as applicable The CITY shall have the right to approve the final building and site plans 5.3 Construction /Site Work/Fencing. The CONCESSIONAIRE shall be solely responsible for all development and construction of the Premises and hold the CITY harmless from any and all claims ansing out of the development and construction of the Premises pursuant to Article 8 6 herein CONCESSIONAIRE shall be responsible for the site work, all required permits and grading CONCESSIONAIRE shall properly barricade the work area and install signage directing unauthorized person from entering onto the building site during any phase of development or construction Unless otherwise agreed fencing shall be placed around the work area In addition, the building site shall be kept in a clean and organized condition during development periods CONCESSIONAIRE shall be responsible for site security, traffic and pedestrian warnings at the site during the development and construction phases 5.4 Construction Deadlines CONCESSIONAIRE shall be required to commence development and construction of the Second Field within six months of the EFFECTIVE DATE of this Agreement Commencement of development and construction of the Second Field is defined as that date upon which physical movement or grading of the soil in preparation for construction of 10 any structure on the Premises CONCESSIONAIRE shall be required to complete the development and construction of the Premises within one year of the EFFECTIVE DATE of this Agreement Completion of the development and construction of the Second Field is defined as that date upon which all final occupancy permits are obtained by the CONCESSIONAIRE 5 5 Failure to Meet Construction Deadlines/Time of Essence. Except as provided in Article 8 15 herein, it is mutually understood and agreed that failure by the CONCESSIONAIRE to meet the development and construction deadlines shall constitute a material breach of this Agreement by the CONCESSIONAIRE and the CITY, at its option, can terminate this Agreement for cause pursuant to Article 7 Time is of the essence with this Agreement 5 6 Stormwater Drainage, Sewer, & Water Lines The CONCESSIONAIRE will be responsible for relocating storm drains, sewers, and water lines to the Premises, as required to complete any development and construction of the Premises 5 7 Development and Construction Fees & Expenses. The CONCESSIONAIRE shall be responsible for obtaining and paying for necessary permits, fees, and expenses associated with the development and construction of the Premises In addition, CONCESSIONAIRE shall be responsible for any additional costs for inspections billed to the CITY by any government agency, including but not limited to the City of Bremerton, Kitsap County, or the State of Washington 5.8 Escrow Requirements To Ensure Performance of Contractors. It is mutually understood and agreed that the CONCESSIONAIRE will, prior to the commencement of development and construction of the Premises pursuant to Article 5 4 herein, place into escrow funds sufficient to ensure contractor performance through completion of construction and development of the Premises 5 9 Not a Public Works Protect The development and construction of the Premises is not a public works project requiring the payment of prevailing wages CONCESSIONAIRE is the developer and the CITY is not an owner, partner, point venturer, nor maintains any other business relationship with the CONCESSIONAIRE regarding the Premises other than as grantor of a concession and user of the Premises The CITY is not involved with, nor has any responsibilities for, the biding, contracting or operations of the Premises and will occupy no space in the Premises The CONCESSIONAIRE does not deem itself required to pay prevailing wages nor will the CONCESSIONAIRE be obligated to pay or to contract for prevailing wages or any other standard of payment controls associated with this project This provision is a material part of the consideration for this Agreement The project signage and all literature, advertising by either the CITY or CONCESSIONAIRE shall not indicate in any manner that this is a CITY protect, contract, or other misleading statement indicating that this project is a public work project directly or indirectly 5.10 No Liens. Except liens and encumbrances of any lender pursuant to Article 6 herein, it is mutually understood and agreed that the CONCESSIONAIRE shall have no authority, express or 11 s implied, to create or place or to allow to be created or placed any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the interest of the CITY in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with CONCESSIONAIRE, including those who may famish materials or perform labor for any construction or repairs, and each such claim shall affect and each such lien shall attach to, if at all, only the right and interest granted to CONCESSIONAIRE by this Agreement If any such liens are filed, CITY may, without waiving its rights and remedies for breach, and without releasing CONCESSIONAIRE from its obligations hereunder, require CONCESSIONAIRE to post security in form and amount reasonably satisfactory to CITY or cause such liens to be released by any means CITY deems proper, including payment in satisfaction of the claim giving rise to the lien CONCESSIONAIRE shall pay to CITY upon demand any sum paid by CITY to remove the liens Further, CONCESSIONAIRE agrees that it will save and hold the CITY harmless from any and all loss, cost, or expenses based on or ansing out of the asserted claims or liens, except those of the lender, against this Agreement or against the right, title, and interest of the CITY in the Premises or under the terms of this Agreement, including reasonable attorney's fees and costs incurred by CITY in removing such liens, and in enforcing this paragraph Additionally, it is mutually understood and agreed that this paragraph is intended to be a continuing provision applicable to future repairs and improvements after the initial construction phase ARTICLE 6 FINANCING & SECURITY INTERESTS 6 1 Financing - No CITY Obligation. CONCESSIONAIRE shall be solely responsible for all financing requirements for all construction, maintenance, repairs, or subsequent improvements to the Premises The CITY shall be under no obligation directly or indirectly to pay for any labor, material, or improvement associated with the facility except as provided herein or mutually agreed upon The CONCESSIONAIRE shall, in applying and obtaining financing, inform any lender that the CITY has no financial obligations associated with the construction, maintenance, repairs or subsequent improvements to the Premises 6.2 Security Interest in Premises & Agreement/Consent. The CITY consents to the grant, transfer, pledge and assignment of any and all right, title, claim, interest of CONCESSIONAIRE in and to this Agreement and in the Premises, and in any building facility, personal property and fixtures in the Premises ( "Collateral ") to lender for financing purposes The CITY shall recognize lender's first priority security interest in the Collateral and the CITY hereby subordinates any and all interest of the CITY in said Collateral to lender CONCESSIONAIRE acknowledges that the CITY will not grant any secunty interest to any lender in CITY real property nor will the CITY allow any encumbrance of any kind or nature whatsoever upon, or in any manner on its title to CITY real property In the event of default by CONCESSIONAIRE to lender, in addition to all its rights and remedies available at law and equity, lender may enforce and/or foreclose its security interest/interests in the Collateral CITY agrees that in connection with any such default, and all without further consent of CITY, lender may a Acquire CONCESSIONAIRE'S interest in the Collateral either by a deed in lieu of foreclosure or actual foreclosure, 12 b Rent and/or grant a ground and use concession of the Premises subject to this Agreement pending foreclosure of the Collateral by lender, c Assign, sell and/or transfer the Collateral in whole or in part to any person or entity, d Take possession of any or all of the Collateral, obtain right of substitution for CONCESSIONAIRE and operate said Collateral, and/or e Appoint a receiver Any assignment or transfer under Article 6 2 is subject to Article 8 7 Lender shall have no interest in improvements located on the Premises at the time of expiration of the term or terms of this Agreement pursuant to Article 2, at which time, all improvements shall become the property of the CITY 6.3 LENDER's Reliance on Term and Renewal Options. The City acknowledges that the CONCESSIONAIRE, in making application for financing, may be required to have an assurance that the terms of this Agreement will extend beyond the term of the financing term By its signature to this Agreement, the CITY confirms its authority to provide the ten -year Agreement term with three options to extend the ten -year Agreement for a total of forty years with the renewal options conditioned solely upon the CONCESSIONAIRE maintaining current payments and remaining in full compliance with the terns and conditions of this Agreement Lender may, but is not obligated to exercise the right to renew and extend the terms of this Agreement as set forth herein Additionally, the CITY acknowledges that, after any original financing commitments by the CONCESSIONAIRE have been satisfied, these financing provisions shall be applicable to all future advances or financing required by the CONCESSIONAIRE and used solely for the improvements and repairs of the Premises 6.4 Surrender of the Collateral. No surrender of Collateral or the Premises subject to this Agreement or any other act of CONCESSIONAIRE shall be deemed to terminate this Agreement CITY will not terminate this Agreement voluntarily by agreement with CONCESSIONAIRE unless lender has been previously notified in writing and has consented to the termination in writing This Agreement shall not be amended or modified unless lender has been previously notified in writing and has consented to such amendment or modification in writing 6 5 Notice of Default and Lender's Rights 6 5 1 Notice of Default. If CONCESSIONAIRE defaults under this Agreement or if any event occurs which would give CITY the right to terminate, modify, amend or shorten the term of this Agreement, CITY shall take no steps to exercise any right it may have under this Agreement without first giving lender written notice of such default in accordance with Article 6 11 below A copy of each and every notice of default served or sent by CITY or its agent to or upon CONCESSIONAIRE pursuant to this Agreement shall be sent contemporaneously to lender in accordance with Article 6 11 below Such notice of default shall specify the event or, events of default then outstanding and the time period at the end of which the indicated action would become effective 13 6 5 2 Termination for Monetary Default. If the notice of default given by CITY to lender relates to a monetary default and CONCESSIONAIRE has not cured such monetary default within 30 days after lender receives the notice and CONCESSIONAIRE'S failure to cure results in CITY desiring to terminate this Agreement, CITY may terminate this Agreement pursuant to Article 7 if such monetary default is not cured by either CONCESSIONAIRE or lender within forty -five (45) days after lender receives the notice of default 6 5 3 Termination for Non - Monetary Default. If the notice of default given by CITY to lender relates to a non - monetary default and CONCESSIONAIRE has not cured, or diligently pursued curing, such non - monetary default within thirty (30) days after lender receives the notice, CITY shall take no action to terminate this Agreement if a Within sixty (60) days after CITY'S notice to lender regarding CONCESSIONAIRE'S failure to cure (or failure to diligently pursue a cure) lender notifies CITY of its intent to realize upon its security interest and commences realization within sixty (60) days thereafter, and diligently pursues realization, and b Lender pays CITY at time of notification all monies or performances due that may be in default up to the day lender notifies CITY of lender's intent and further pays or performs all consideration that accrues during the period after lender so notifies CITY and completes such other performances that may be required or come due under this Agreement CITY shall not terminate this Agreement because of CONCESSIONAIRE'S breach of any terms of this Agreement relating to the solvency of CONCESSIONAIRE or the institution of any bankruptcy, insolvency, receivership or related action by or against CONCESSIONAIRE as long as lender cures any default under this Agreement by CONCESSIONAIRE as provided herein, except that lender shall not be required to cure any defaults relating to solvency of CONCESSIONAIRE 6 6 Right to Assign. Lender shall have the right to assign its interest in the Collateral Upon the purchaser's, assignee's or transferee's assumption and agreement to perform and be bound by all of the terms of this Agreement, lender shall be relieved from further liability under this Agreement If a lender finances the purchaser, assignee or transferee, said lender shall be subject to all obligations as set forth in this Agreement Any successor lender shall be bound by the terms and conditions of this Agreement 6 7 Disposition of Insurance Should the Collateral suffer any loss which is covered by casualty insurance, and the insurance proceeds are used to restore any improvements made by CONCESSIONAIRE, CITY agrees that CONCESSIONAIRE and lender shall have the right to such proceeds so long as none of CITY'S property, utilities or other services therein are damaged or such damages are repaired In the event the CITY'S land is substantially damaged and CONCESSIONAIRE'S improvements have been repaired, CITY shall only participate in the insurance proceeds to the extent necessary to repair and restore CITY'S land and any of CITY'S improvements on or in the ground to the same condition the land was at the commencement of this Agreement, or in the same condition at the time of the casualty Other than as described herein, CITY shall have no claim to insurance proceeds that are attributable to CONCESSIONAIRE's interest in the Collateral 14 6.7 Right to Participate in Litigation. Lender shall have the right to participate in any litigation, arbitration or dispute directly affecting the Collateral or interest of CONCESSIONAIRE or lender therein, including, without limitation, any suit, action, arbitration proceeding, condemnation proceeding or insurance claim CITY, upon instituting or receiving notice of any such litigation, arbitration or dispute will promptly notify lender of the same 6 8 Incorporation of Lender's Protection Provisions. Lender shall be a beneficiary of all rights of CONCESSIONAIRE herein including but not limited to the warranty, indemnity, hold harmless, choice of law and venue, costs and attorney's fees as provided herein 6.9 Right to Remove Collateral. In the event lender exercises its rights under its Collateral and realizes upon the Collateral, CITY agrees that lender is entitled to remove the Collateral, including but not limited to building facility, furniture, movable trade fixtures and equipment, from the Premises at any reasonable time and that the Collateral shall remain personal property even though the trade fixtures may be affixed to or placed upon the Premises In the event lender so realizes on its Collateral, CITY waives any right, title, claim, lien or interest in the Collateral 6.10 Notices. All notices, copies of notices, consents or other communications to lender given under this Agreement to lender must be in writing and shall be effective when received Such communications shall be given in person to an officer of lender, addressed to lender at an address as provided by lender ARTICLE 7. TERMINATION 71 Failure to Perform 71 1 Obligation to Perform. Nothing herein shall imply any duty upon CITY to do any work, which under any provision of this concession CONCESSIONAIRE may be required to perform, and the performance thereof by CITY shall not constitute a waiver of CONCESSIONAIRE's default CITY shall not in any event be liable for inconvenience, annoyance, and disturbance in its activities in the PARK, however shall not permit a loss of business, or other damage to CONCESSIONAIRE by reason of its actions pertaining to the PARK 7.1.2 Payments to Other Parties. Except as otherwise expressly provided hereunder, all obligations of the CONCESSIONAIRE under this Agreement will be performed by CONCESSIONAIRE at CONCESSIONAIRE's sole cost and expense If CONCESSIONAIRE fails to pay any sum of money owed to any party other than CITY for which CONCESSIONAIRE is liable hereunder, or if CONCESSIONAIRE fails to perform any other act on its part to be performed hereunder, and such failure continues for ten days after notice thereof by CITY, CITY may, without waiving or releasing CONCESSIONAIRE from its obligations, make any such payment or perform any such other act to be made or performed by CONCESSIONAIRE CONCESSIONAIRE shall pay CITY, on demand, all sums so paid by 15 CITY and all necessary incidental costs, together with interest thereon at the lesser of 1% percent per month or the maximum rate permissible by law, from the date of such payment by CITY 7 2 Default. This Agreement and the concession granted herein may be terminated for default as follows 7.2.1 CITY's Default. CITY will not be in default unless CITY fails to perform an obligation within thirty (30) days after notice by CONCESSIONAIRE, which notice must specify the alleged breach, provided that if the nature of CITY's obligation is such that more than thirty (30) days are reasonably required for cure, then CITY will not be in default if CITY commences to cure within thirty (30) days of CONCESSIONAIRE's notice and thereafter diligently pursues completion and completes performance within a reasonable time 7 2.2. CONCESSIONAIRE's Default. The occurrence of any one or more of the following events constitutes a default under this Agreement by CONCESSIONAIRE (1) CONCESSIONAIRE shall be in default of the performance of any covenants, conditions, or provisions of this Agreement, other than the covenants for the payment of consideration required by this Agreement, where such failure continues for a period of thirty (30) days after written notice is given by CITY provided that if the nature of CONCESSIONAIRE's obligations is such that more than thirty (30) days are reasonably required for cure, CONCESSIONAIRE will not be in default if CONCESSIONAIRE commences to cure within thirty (30) days of CITY's notice and thereafter diligently pursues completion and completes performance within a reasonable time, or (2) CONCESSIONAIRE shall be adjudged bankrupt, make a general assignment for the benefit of creditors, or take the benefit of any insolvency act, or if a permanent receiver and trustee in bankruptcy shall be appointed for CONCESSIONAIRE's estate and such appointment is not vacated within thirty (30) days, or (3) Premises become vacant or deserted for a period of thirty (30) days, or (4) if this Agreement shall be assigned or the Premises concessioned by CONCESSIONAIRE other than in accordance with the terms of this AGREEMENT and such default is not cured within twenty (20) days after written notice to CONCESSIONAIRE, or (5) CONCESSIONAIRE shall fail to make any payment when due, or fail to make any other payment required hereunder when due, when that failure is not cured within thirty (30) days after mailing of wntten notice thereof by CITY, or (6) CONCESSIONAIRE shall fail to comply with the same concession tern or covenant on three occasions during any 10 year tern, even if such breach is cured within the applicable cure period The CITY's right to terminate pursuant to this Article for failure of CONSCESSIONAIRE to cure a default is subject to the lender's nght to cure pursuant to Articles 6 5 2 and 6 5 3 7 2.3 Default for Other Cause. This Agreement may be immediately terminated for other cause by a party if the other party substantially fails to perform its obligations under this Agreement, through no fault of the terminating party, and the non - performing party does not commence correction of the failure of performance within thirty (30) days of the terminating party's sending notice to the non - performing party 16 7 3 Remedies Are Cumulative. Remedies under this Agreement are cumulative, the failure to exercise on any occasion any right shall not operate to forfeit such remedy 7 4 Destruction of Premises & Use of Insurance Proceeds. Unless otherwise mutually agreed by the PARTIES, in the event the Premises are destroyed or inured by fire, earthquake, or other casualty, then CONCESSIONAIRE shall proceed to rebuild and restore the Premises, or such part thereof as may be inured as aforesaid In the event of any loss covered by the insurance policies described and required pursuant to Article 8 5 1 herein, unless this Agreement shall be terminated as provided herein, the proceeds of such insurance policies shall be used by CONCESSIONAIRE first to rebuild and restore the Premises and replace the improvements, fixtures, and equipment, which may be damaged or destroyed by such casualty 7 5 Duties upon Termination. Upon termination of this Agreement, and unless otherwise arranged, CONCESSIONAIRE shall remove from the PARK all its personal property, goods, and effects In the event that the CONCESSIONAIRE fails to perform this duty at termination, the CITY may cause such removal to be made and said personal property, goods, and effects to be stored, the cost and expense to be paid by the CONCESSIONAIRE It is mutually understood and agreed that the real property constituting the Premises of this Agreement is the real property of the CITY and that all improvements to said real property shall revert to the CITY at the termination of this Agreement 7 6 Eminent Domain The following rules shall govern the rights and duties of the PARTIES in the event of interference with the possession of the Premises by CONCESSIONAIRE by right of eminent domain or private purchase in lieu thereof 7 61 Rights of Termination. If the whole of the Premises shall be taken for any public or quasi - public use under any statute or by right of eminent domain, or by private purchase in lieu thereof, then this Agreement shall automatically terminate as of the date that title shall be taken If more than twenty -five percent (25 %) of the Premises shall be so taken and if the taking renders the remainder thereof unusable for the purposes for which the Premises were concessioned, then CITY and CONCESSIONAIRE shall each have the right to terminate this Agreement on thirty (30) days notice to the other given within ninety (90) days after the date of such taking Provided, however, that if the CITY is exercising its rights of eminent domain, a fair value shall be placed on this Agreement and the Premises with the compensation thereof awarded solely to CONCESSIONAIRE, or lender pursuant to its security interest, if any 7 6 2 Non - Termination. If any part of the Premises shall be so taken and this Agreement is not terminated, then the CITY shall, at its own cost and expense, restore the remaining portion of the Premises to the extent necessary to render it reasonably suitable for the purposes for which it was concessioned 7 6 3 Compensation. The compensation awarded or paid upon such a total or partial taking of the Premises and/or this Agreement shall belong to and be apportioned between the CITY and CONCESSIONAIRE in accordance with their respective interests as determined by a 17 court of competent jurisdiction Additionally, CONCESSIONAIRE may prosecute any claim directly against the condemning authority for the costs of removal of the goodwill, stock, trade fixtures, furniture and other personal property belonging to CONCESSIONAIRE CITY shall have no claim to condemnation proceeds that are attributable to CONCESSIONAIRE's interest in the Collateral, nor shall lender gave any interest in CITY's condemnation proceeds, if any ARTICLE 8 GENERAL CONDITIONS 8.1 Relationship of PARTIES. 81.1 CONCESSIONAIRE Independent Contractor Status. The PARTIES intend that an independent relationship shall be created by this Agreement Nothing contained herein shall create the relationship of principal and agent or of partnership or ofjoint venture between the parties hereto, and neither the method of computation of consideration nor any other provision contained herein shall be deemed to create any relationship between the parties hereto other than the relationship of CITY as granting a ground and use concession to the CONCESSIONAIRE CONCESSIONAIRE has the experience, ability, and resources to develop and operate an indoor athletic facility and is performing independent functions and responsibilities within its field of expertise CONCESSIONAIRE and its personnel are independent contractors and not employees of the CITY No agent, employee, servant, or representative of the CONCESSIONAIRE shall be deemed to be an employee, agent, servant or representative of the CITY CONCESSIONAIRE and its personnel have no authority to bind the CITY or to control the CITY's employees As an independent contractor, CONCESSIONAIRE is responsible for its own management The CITY's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over CONCESSIONAIRE or its personnel 8 1.2 No Third Party Rights Created. It is mutually understood and agreed that this Agreement is solely for the benefit of the PARTIES hereto and gives no right to any other party except as provided by Article 6 herein 8 13 No Joint Venture /Partnership. It is mutually understood and agreed that no point venture or partnership formed as a result of this Agreement 8 2 Notices Except as provided in Article 6 herein, any notice required or permitted hereunder must be in writing and will be effective upon the earlier of personal delivery or three days after being mailed by certified mail, return receipt requested, addressed to CONCESSIONAIRE or to CITY at the address for that party designated herein Either party may specify a different address for notice purposes by written notice to the other, except that CITY may in any event use the Premises as CONCESSIONAIRE's address for notice purposes All notices shall be delivered to the following addresses 18 CITY Address CONCESSIONAIRE Address City of Bremerton Olympic Soccer & Sports Center, LLC Attn Director of Parks and Recreation Attn Mr Dennis Michael, Manager 680 Lebo Boulevard P O Box 5047 Bremerton, WA 98310 Bremerton, WA 98312 -0466 8 3 Reports & Information When requested by the CITY, CONCESSIONAIRE shall furnish periodic reports and documents on matters covered by this Agreement The reports and documents shall be furnished in the time and form requested CONCESSIONAIRE shall maintain accounting records to accordance with Generally Accepted Accounting Principles (GAAP) 8.4 Permits, Licenses, Taxes, & Fees. 8.4.1 Permits, Licenses, & Other Documents. The CONCESSIONAIRE shall possess a current Bremerton Business License and shall obtain all regulatory licenses and permits, including all construction and building permits, necessary to fulfill CONCESSIONAIRE's obligations under this Agreement at CONCESSIONAIRE's sole expense Each party agrees to execute such additional or other documents as may be required to fully implement the intent of this Agreement 8 4 2 Taxes & Fees. As an independent contractor, the CONCESSIONAIRE shall be solely responsible for all taxes, fees and charges incurred, including but not limited to license fees, business and occupation taxes, workers' compensation and unemployment benefits, all federal, state, regional, county and local taxes and fees, including leasehold excise tax pursuant Chapter 82 29A RCW, ad valorem taxes, taxes imposed on personal property, all other assessments for improvements or benefits which are assessed on the Premises, income taxes, property taxes, permit fees, operating fees, surcharges of any kind that apply to any and all persons, facilities, property, income, equipment, materials, supplies or activities related to the CONCESSIONAIRE's obligations under this Agreement The parties acknowledge that for the purpose of real estate taxes, the use of the Premises is limited to those uses identified in Article 411 8.5 Insurance. 8 51 Fire, Earthquake, & Casualty Insurance The CONCESSIONAIRE agrees that, at all times during the full term of this Agreement and at its own expense, CONCESSIONAIRE shall, at its sole cost and expense, maintain in full force and effect adequate fire, earthquake, and other casualty coverage covering the Premises and its contents, including all personal property, fixtures, improvements Such policy shall include a replacement cost endorsement CONCESSIONAIRE will shall obtain and file with the CITY's Risk Manager a Certificate of Insurance evidencing such coverage All such insurance coverage shall include a ten -day cancellation notice to CONCESSIONAIRE and the CITY Adequacy of coverage is defined as insurance sufficient to restore the Premises to its pre - casualty condition 19 8.5 2 Liability Insurance Prior to the commencement date of this Agreement, CONCESSIONAIRE, at its own expense shall obtain and file with the CITY's Risk Manager a Certificate of Insurance evidencing general comprehensive liability insurance coverage ( "CGL ") providing coverage of at least $1,000,000 per occurrence for bodily injury and $500,000 per occurrence for property damage This Certificate of Insurance shall be subject to approval by the CITY's Risk Manager as to company, terms and coverage, and said approval shall not be unreasonably withheld The CGL shall name the CITY as an additional insured and must fully protect the CITY from any and all claims and risks and losses in connection with any activities or omissions by the CONCESSIONAIRE by virtue of this Agreement The CGL policy shall remain in full force and effect at the CONCESSIONAIRE's sole expense for liability for property damage or personal injury that may occur in connection with activities or omissions by the CONCESSIONAIRE, and provide coverage for the full term of this Agreement CONCESSIONAIRE shall insure that the CITY's Risk Manager is given thirty - calendar days prior written notice, by certified mail, of any cancellation, lapse, reduction or modification of such insurance 8 5 3 Release and Waiver of Subrogation Any policy of insurance carried by either CITY or CONCESSIONAIRE pursuant to any obligation under this Agreement, shall, to the extent available, contain a waiver of subrogation clause on the part of the insurer Such waiver shall apply to damages to adjacent property Notwithstanding any other provision of this Agreement, neither CITY nor CONCESSIONAIRE shall be liable to the other party or to any insurance company (by subrogation or otherwise) insuring the other party for any loss or damage to any building, structure or tangible personal property of the other occurring in or about the Premises or PARK, even though such loss or damage might have been occasioned by the negligence of such party, its agents or employees, if such loss or damage is covered by insurance issued by an insurance carrier authorized or licensed by the Insurance Commissioner of the State of Washington to issue lines of insurance, benefiting the party suffering such loss or damage or was required under the terms of this Agreement to be covered by insurance by the party covering the loss 8 6 Hold Harmless, Indemnification, & Industrial Insurance. 8 61 Hold Harmless & Indemnification Each party hereto agrees to be responsible and assumes liability for its own wrongful or negligent acts or omissions, or those of its officers, agents, or employees to the fullest extent required by law Each party agrees to save, indemnify, defend, or hold the other party harmless against all liability, loss, damages, and expenses, including costs and attorney's fees, resulting from actions, claims and lawsuits ansmg or alleged to have arisen, in whole or in part, out of or in consequence of the acts or failures to act of the other party, its employees, its subcontractors, its agents, or its assigns, which arse in any way out of the performance of this Agreement In the case of negligence of both the CITY and the CONCESSIONAIRE, any damages allowed shall be levied in proportion to the percentage of negligence attributable to each party, and each party shall have the right to seek contribution from the other party in proportion to the percentage of negligence attributable to the other party 20 8 6.2 Industrial Insurance. The PARTIES have specifically negotiated CONCESSIONAIRE's waiver of its immunity under Title 51 RCW, which is hereby waived for purposes of CONCESSIONAIRE's indemnification and hold harmless of the CITY, including the duty to defend This provision shall be inapplicable to the extent such action, claim, or lawsuit is judicially found to anse solely from the acts or failures to act of the CITY 8.7 Successors & Assigns The CITY and CONCESSIONAIRE each agree to be bound to the other party in respect to all covenants, agreements, and obligations contained in this contract Except as provided in Article 6 herein, neither party shall assign the contract in part or as a whole, without the written consent of the other Except as provided in Article 6 herein, the CONCESSIONAIRE shall not subcontract any of the Premises, services, facilities, or equipment, or delegate any of its duties under this Agreement without the prior written approval of the CITY The CITY acknowledges that the CONCESSIONAIRE shall be authorized to sub - concession areas within the Premises to food and beverage purveyors, equipment sales, and similar supporting concessions When requested, approval by the CITY of a subcontract or assignment shall not be unreasonably withheld In the event of an assignment, subcontracting, or delegation of duties, the CONCESSIONAIRE shall remain responsible for the full and faithful performance of this Agreement and the assignee, subcontractor, or other obligor shall also become responsible to the CITY for the satisfactory performance of the services, facilities, or equipment assumed The CITY may condition approval upon the delivery by the assignee, subcontractor, or other obligor of its covenant to the CITY to fully and faithfully complete the requirements or responsibility undertaken under this Agreement Notwithstanding the foregoing, provided CONCESSIONAIRE is not in default, the CONCESSIONAIRE may assign its interest in this Agreement without seeking CITY's consent to a parent or subsidiary Except as otherwise provided herein, all of the covenants, conditions, and provisions of this Agreement are binding upon and inure to the benefit of the PARTIES and their respective heirs, personal representatives, successors, and assigns 8 8 Bankruptcy. Except as provided in Article 6 herein, PARTIES agree that if the CONCESSIONAIRE is adjudged bankrupt, either voluntarily or involuntarily, then this AGREEMENT, at the option of the CITY, may be terminated effective on the day and at the time the bankruptcy petition is filed 8 9 Compliance with Laws. The CONCESSIONAIRE, its officers, employees, and agents shall comply with applicable federal, state, county, and local laws, statutes, rules, regulations, and ordinances, in performing its obligations under this Agreement Such compliance shall include abiding by all applicable federal, state and local policies to ensure equal employment opportunity based on ability and fitness to all persons regardless of race, creed, color, national origin, religion, sex, physical handicaps or age The CONCESSIONAIRE shall comply with applicable laws pertaining to employment practices and employee treatment Conditions of the Federal Occupational Safety and Health Act of 1970 (OSHA), the Washington Industrial Safety and Health Act of 1973 (WISHA), and standards and regulations issued under these Acts must be complied with The CONCESSIONAIRE agrees to indemnify and hold harmless the City from 21 all damages assessed for the CONCESSIONAIRE's failure to comply with the Acts and Standards issued thereunder The CONCESSIONAIRE is also responsible for meeting all pertinent local, state and federal health and environmental regulations and standards applying to any operation in the performance of this Agreement 8 10 Nondiscrimination. PARTIES shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, or disability, except for employment actions based on bona fide occupational qualification 8.11 Choice of Law & Venue. This Agreement shall be interpreted according to the laws of the State of Washington Any judicial action to resolve disputes ansing out of this Agreement shall be brought in Kitsap County Superior Court 812 Costs & Attorneys' Fees In any action brought to enforce any provision of this Agreement, including actions to recover sums due or for the breach of any covenant or condition of this Agreement, or for the restitution of the Premises to the CITY or eviction of the CONCESSIONAIRE during the term or after expiration thereof, the substantially prevailing party shall be entitled to recover from the other party all reasonable costs and reasonable attorney's fees incurred, including the fees of accountants, appraisers, and other professionals, at trial or on appeal, and without resort to suit 8 13 Modification This Agreement may only be modified by written instrument signed by both PARTIES 814 Change in Law /Renegotiation The PARTIES agree that changes in federal, state or local laws or regulations that materially modify the terns and conditions of the Agreement and result in a detrimental change in circumstances or a material hardship for either party in performing this Agreement may be the subject of a request by a requesting party to renegotiate this Agreement or negotiate Agreement amendments and the responding party agrees to renegotiate fairly with the requesting party 8 15 Force Maleure Provided that all other requirements of this Agreement are met, any party shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if that party's performance is prevented or delayed by acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, acts of the public enemy, wars, blockades, public nots, breakage, explosions, accident to machinery, equipment or materials, unavailability of required materials, governmental restraint or other causes, whether of the kind enumerated or otherwise, which are not reasonably within the control of that obligated party ( "Force Majeure ") If as a result of a Force Majeure event, an obligated party is unable wholly or partially to meet its obligations under this Agreement, it shall give the other party promptly written notice of the Force Majeure event, describing it in reasonable detail The obligated party's obligations under this Agreement shall be suspended, but only with respect to the particular component of obligations affected by the Force Majeure and only for the period during which the Force Maleure exists 22 8.16 Waiver Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision No waiver of any right or obligation of either party hereto shall be effective unless in writing, specifying such waiver, executed by the party against whom such waiver is sought to be enforced Waiver of any right or power ansing out of this Agreement shall not be deemed waiver of any other right or power 817 Illegal Provisions — Severability Should any part of this Agreement be found void, illegal, or unenforceable, the balance of the Agreement shall remain in full force and effect 818 Article Headings, Gender, & Number Article paragraph headings are not to be construed as binding provisions of this concession, they are for the convenience of the PARTIES only The masculine, feminine, singular and plural of any word or words shall be deemed to include and refer to the gender and number appropriate in the context 8 19 Entire Agreement This Agreement and its Exhibits constitutes the entire agreement between the PARTIES, and the PARTIES acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement 8 20 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument 8 21 Recording. Following execution of this Agreement the CITY will cause a Memorandum of Concession Agreement to be recorded with the land use records of Kitsap County, Washington A copy of the Memorandum of Concession Agreement is attachcd hereto as Exhibit D IN WITNESS WHEREOF, this Agreement has been entered into between the City of B merton and Olympic Soccer & Sports Center, LLC as of the day of UAto er - , 2006 OLYMPIC SOCCER & SPORTS CENTER, LLC a Washington limited liability company By Dennis Michael, Manager 23 STATE OF WASHINGTON ) ) ss COUNTY OF KITSAP ) On thi_ day of Qej fj�or- , 2006 ' before me personally appeared to me known to be the ✓' of OLYMPIC SOCCER & SPORTS CENTER, LLC, a Washington limited liability company, that executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute and in fact executed said instrument on behalf of the corporation w R b� - b A4 u Given ; er ` m'a Hdnc� official seal thi day of , 2006 st ,... ; °` GT��,���;. Type/Pnnt N Notary Public in and for the o UBI State of Washington residing at jeAAPr6t WA o 00 - 27 •' �p My Commission expires � - 7 -(�7 ��F G CITY OF BREMERTON a Washington municipal co oration By Cary Bozeman, Mayor APPROVED AS TO FORM Roger A Lubovich, City Attorne ATTEST Paula Jo stop, C y Clerk 24 STATE OF WASHINGTON) ) ss COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that CARY BOZEMAN is the person who appeared before me, and acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the CITY OF BREMERTON to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument Given O d official seal this day of 1 20 64 S der p � �'F Type/Pnnt Name O ;� Notary Public in and for the State of Washington residing at ryler� -r,,n VJA 0 ;� My Commission expires a-1- 071 N\�G LIST Exhibit A — Legal Description of Premises Exhibit B — Preliminary Building and Site Plans Exhibit C — Appraisal and Compensation Information Exhibit D — Memorandum of Concession Agreement R \Legal \Legal\Fdes \Current Active Files \Olympic Soccer\Amendment No I - Final doc 25 EXHIBIT "A" Legal Description for Soccer Concession at Pendergast Park A portion of the Northeast quarter of the Southwest quarter, Section 21, Township 24 North, Range 1 East, Williamette Meridian, which is more particularly described as follows Beginning at the East quarter corner of said Section 21, thence along the East -West centerline of said Section 21, N 88 °50'50" W 5316 00 feet to the West quarter corner of said Section 21, thence S 65 °16'01" E 2125 47 feet to an existing corner of the building for Olympic Sports and Soccer Center, also being the True Point of Beginning, thence along said building, N 89'18'55" E 100 42 feet, thence S 0'48'13" E 44 56 feet, thence N 89 0 11'47" E 54 86 feet, thence S 0 °49'09" E 113 85 feet, thence S 89 °17'18" W 54 89 feet, thence S 0 °15'19" E 52 06 feet, thence leaving said building S 0 °15'19" E 14 62 feet, thence S 89'14'46"W 199 87 feet, thence N 0 0 46'54" W 200 00 feet, thence N 89 °18'55" E 100 00 feet to the said building for Olympic Sports and Soccer Center, thence along said building, N 0 °46'54" W 25 24 feet to the True Point of Beginning Together with and subject to a 15 foot maintenance and access buffer adjacent to and abutting above described concession Together with ingress and egress to and from the public right of way (Union Avenue) over and upon the City parks properties and roadway to the above described concession Said ingress and egress shall terminate with said concession Said concession area to constitute 48,829 square feet, and with said maintenance and access buffer, 64,157 square feet OLYMPIC SOCCER EXPANSION A PORTION OF SECTION 21, TOWNSHIP 24 NORTH, RANGE 1 EAST, W M. BREMERTON, WASHINGTON GRADING, DRAINAGE AND SANITARY SEWER AND TESC PLAN , , ' � I 1 S� 1\00T nr m � l n e / EXHIBIT B OLYMPIC SOCCER EXPANSION / A A PORTION OF SECTION 21 TOWNSHIP 24 NORTH RANGE 1 EAST W.M 1Ax PARCEL NUMMM BREMERTON WASHINGTON " COVER SHEET +A " �Z v ry « AY ck4 v;,p . _. COVER -;lc- s P E 1r ` Y7. i -•'[ '� J�7 9tTe L t •R t ' S r J r E4 A ,� uY ' s I a , vl j[ rr' r"sdv�. ++ v d - -• °f WE WO � ° �t P` - ..L . M 9 � '• i d •, rw �p. y t v ^l EI � f try � VICINII' YAP/ !� L G Yry '� i ll II 11 I I I Y i rf f 6" S• ^y I I ! I I III I I I ^ ✓ ; r�I Y SUE DATA s + � ^ r " ull lul uu lnu 1 1 s - j��+,,,�s 1"F' h �T y -� 1 = � ! I.r Qom- l j j I �T ' I n • +sx c c a h ws Y ,. w ' \T I ! � I 'w✓¢ � �.N � I 4 � p 1. rJ+O°var T r ~ � L � 1 s I t r „ , r �� ! J� i -�- '-- L1--I' I 1 1= � � I � •, s �l.l�G. �us.o ✓✓ Y -' _S _ f,ECAf. DESCP 1 I - ^4 >• " w a+ ' ,Yis o�.,,. y' t+a, c ' I+" .. j E - i +t ' � � S .r_ } 1 � r � a - ♦ �y ed J ' .• � R - �T x t Y L I .Sxo X \rw ..4 [K • y + ' v . " 1' $ r! I� '� t NDER y om ,' � � r '" } W � r ! n; E � y •. {g � Y r � ,. ,, a +t r15 "' � .S f' o K s + � _ a ! a,.I u .> .s I - �.. r " t - 1 cwt tf. -• :-c r z' ,` in_ ,' .. ofr►IVlcsoccErlocPAr�san WestSound aul PnC 771— '� Engineering In j I OLymmsocm maw w.ar r•louors wmtaa+nun r.lamEna� ,E_ I 1 E.s 4M.EV® Y>ppm jDaw 1333 qn 1_ 0-5- sln EXHIBIT C Value and Compensation J CONCESSION SITE "AREA June 2001 concession site area 30,000 square feet Addition to concession site area 20,000 square feet Total Concession Site Area 50,000 square feet CON SfTE VALUATIONS " T ill _ - " , "f J& June 2001 value for 30,000 square feet $4,14000 $0 138 per sq ft x 30,000) Determining new concession value (1) $0 20 per sq ft for the June 2001 concession site area and proposed addition (50,000 sq ft ) ($0 20 per sq ft x 50,000 = $10,000 00) (2) Add $2,000 00 for outdoor lighting and parking 3 Add $9,000 for field use 150 hours x $60 /hr) Total Concession Value $21,00000 DETERMINING MONETARY COMPENSATION 4 �a ,'°` 1T j' ,k 150 hours of field time valued at $60 per hour = $9,000 Concession value ($21,000) minus field time ($9,000) $12,000 per year monetary compensation Return Address Atm City Clerk City of Bremerton 3456 TH Street, Suite 600 Bremerton, WA 98337 AUDITOR/RECORDER'S INDEXING FORM Document Title(s) 1 Memorandum of First Amended Concession Agreement Reference Number(s) of Documents assigned or released Amends and Replaces 200108170289 Grantor(s) 1 City of Bremerton (City) ❑ Additional names on page of document Grantee(s) 1 Olympic Soccer & Sports Center, LLC (Concessionaire) Additional names on page of document I egal Description pin NE %< SW %a S21 T24N RIE, W M, Kitsap County, WA (abbreviated) E Additional legal is on page Exhibit A of document Assessor's Property Tax Parcel /Account Number 212501 -3- 005 -2001 MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT This Memorandum of First Amended Concession Agreement is entered into on the date fully executed below, by and between the City of Bremerton, a Washington municipal corporation (hereinafter referred to as "City ") and Olympic Soccer & Sports Center, LLC, a Washington limited liability company (hereinafter referred to as "Concessionaire ") 1 City and Concessionaire entered into a First Amended Concession Agreement Between the City of Bremerton and Olympic Soccer & Sports Center, LLC (the "Agreement ") on the day of , 2006, for the purpose of constructing, operating and maintaining an indoor athletic facility and other improvements The First Amended Concession Agreement amends and replaces that certain Concession Agreement recorded on August 17, 2001 in the records of Kitsap County under Auditor's File No 200108170289 and is for a term of MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 1 EXHIBIT D fifteen (15) years commencing June 1, 2001, with three (3) successive ten (10) year options to renew as specified in the Agreement All of the foregoing are set forth in the Agreement 2 The property which is the subject of the Agreement is legally described in Exhibit "A" attached hereto and incorporated by reference IN WITNESS WHEREOF, the parties have executed this Memorandum of First Amended Concession Agreement as of the day and year first above written CITY CONCESSIONAIRE CITY OF BREMERTON OLYMPIC SOCCER & SPORTS CENTER, LLC By By Print Name Cary Bozeman Print Name Dennis Michael Its Mayor Its Manager DATE DATE STATE OF WASHINGTON ) ss COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that Cary Bozeman is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument on behalf of the City of Bremerton as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument Notary Sea! Must Appear Within This Box - IN WITNESS WHEREOF, I have hereunto set my hand and official seal this day of . 2006 NOTARY PUBLIC, in and for the State of Washington, residmg at My appointment expires MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 2 STATE OF WASHINGTON ) ss COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that Dennis Michael is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument on behalf of the Olympic Soccer & Sports Center, LLC as its Manager, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument -Notary Seat Must Appear Wrthur 77rrs 9ox- IN WITNESS WHEREOF, I have hereunto set my hand and official seal this day of , 2006 NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 3 EXHIBIT B Return Address Attn City Clerk City of Bremerton 345 6 Street, Suite 600 Bremerton, WA 98337 111111111111111111111111111111 111 ,111 it, P 0061201340124 BREMERTON C1T/ OF 11A 12 113,c006 01 15P A35 00 Kitsap CO, WA AUDITOR/RECORDER'S INDEXING FORM Document Title(s) 1 Memorandum of Firct Amended Concession Agreement Reference Number(s) of Documents assigned or released Amends and Replaces 200108170289 Grantor(s) 1 City of Bremerton (City) Additional names on page of document Grantees) 1 Olympic Soccer & Sports Center, LLC (Concessionaire) Additional names on page of document Legal Description Pt NE y, SW %, S21 T24N R1E, W M, Kitsap County, WA (abbreviated) U Additional legal is on page Exhibit A_ of document Assessor's Property Tax Parcel/Account Number 212501 -3- 005 -2001 MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT This Memorandum of First Amended Concession Agreement is entered into on the date fully executed below, by and between the City of Bremerton, a Washington municipal corporation (hereinafter referred to as `City ") and Olympic Soccer & Sports Center, LLC, a Washington limited liability company (hereinafter referred to as "Concessionaire ") -� 1 _ , City and Concessionaire entered into a First Amended Concession Agreement Between the City of Bremerton and Olympic Soccer & Sports Center, LLC (the "Agreement ") on th day of 1,0 ✓ , 2006, for the purpose of constructing, operating and maintaining an indoor athletic facility and other improvements The First Amended Concession Agreement amends and replaces that certain Concession Agreement recorded on August 17, 2001 in the records of Kitsap County under Auditor's File No 200108170289 and is for a term of fifteen (15) years commencing June 1, 2001, with three (3) successive ten (10) year options to renew as specified in the Agreement All of the foregoing are set forth in the Agreement MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - I 2 The property which is the subject of the Agreement is legally described in Exhibit "A" attached hereto and incorporated by reference IN WITNESS WHEREOF, the parties have executed this Memorandum of First Amended Concession Agreement as of the day and year first above written CITY CONCESSIONAIRE CITY OF BREMERTON OLYMPIC SOCCER & SPORTS CENTER, LLC i By By Print Name Cary Bozeman Print Name Dennis Michael Its Mayor Its Manager DATE eaw 3-)16 .0-C> /( DATE CC�t loe 30, Zrao STATE OF WASHINGTON ) ss COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that Cary Bozeman is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument on behalf of the City of Bremerton as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument Notary Seal Mort Appear Within Thu Box- c(,� N WITNESS WHEREOF, I have hereunto set my hand and official seal thi &" lay of 2006 'ZZ 9 •� E-Y -�, °SOT /Q NOTARY PUBLIC, in and for the State A y g T {� I&A of Washin residin at F� ✓EyKPf n 0 31 87 O Z Myappointmentexptres F OF W MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMEN r - 2 200612130124 NP 2 of 4 1 X11 ?r c996 91 15P BREMEPTON CITY OF 118 $35 00 Yitsal, Co, WA STATE OF WASHINGTON ) ss COUNTY OF KITSAP ) I hereby certify that I know or have satisfactory evidence that Dennis Michael is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument on behalf of the Olympic Soccer & Sports Center, LLC as its Manager, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument Notary Sea! Must Appear Within This Box - IN WITNESS WHEREOF, I have hereunto set my T d o fficial seal this day of f / , 2006 M A °M`�q� _ I Yw�ryta V (Svyeor 'o Ol A �Po'. � NOTARY PUBLIC, in and for the State 1 r � of Washington, residing at RrRp�l� A— W A p (IBL\c' My appointment expires - ;17) - Q'I 3 -27. • O � � WASH�N iIIIIIIIIIIIIIIIIIIiIIII 0061 Ef 01 15 4 BREMERTM CITE OF MA $35 00 kirsap Co, llA MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 3 EXHIBIT "A" Legal Description for Soccer Concession at Pendergast Park A portion of the Northeast quarter of the Southwest quarter, Section 21, Township 24 North, Range 1 East, Williamette Meridian, which is more particularly described as follows Beginning at the East quarter corner of said Section 21, thence along the East -West centerline of said Section 21, N 88 °50'50" W 5316 00 feet to the West quarter corner of said Section 21, thence S 65 °16'01" E 2125 47 feet to an existing corner of the building for Olympic Sports and Soccer Center, also being the True Point of Beginning, thence along said building, N 89'18'55" E 100 42 feet, thence S 0'48'13" E 44 56 feet, thence N 89 E 54 86 feet, thence S 0 °49'09" E 113 85 feet, thence S 89 ° 1T1 8" W 54 89 feet, thence S 0° 15' 19" E 52 06 feet, thence leaving said building S 0° 15' 19" E 14 62 feet, thence S 89'14'46"W 199 87 feet, thence N 0 °46'54" W 200 00 feet, thence N 89 °18'55" E 100 00 feet to the said building for Olympic Sports and Soccer Center, thence along said building, N 0 °46'54" W 25 24 feet to the True Point of Beginning Together with and subject to a 15 foot maintenance and access buffer adjacent to and abutting above described concession Together with ingress and egress to and from the public right of way (Union Avenue) over and upon the City parks properties and roadway to the above described concession Said ingress and egress shall terminate with said concession Said concession area to constitute 48,829 square feet, and with said maintenance and access buffer, 64,157 square feet 11111 BR Illll f11fRT III ON IIII C1Tf III 2 p0 61 I�lll F 2 13 aye o r riA III a 24 a 5 Fjq ki sap co ©��8©1 15P PARKS & RECREATION I 680 LEBO BOULEVARD - BREMERTON, WA 98310 -5841 4 TEL 360 473 5305 FAx 360 473 5882 • www a bremerton wa us February 25, 2014 To Bremerton City Council, Mayor Patty Lent From Bremerton Parks and Recreation Commission RE Advisory Report on the Sub - Concession and Assignment of Concession Agreement for Pendergast Indoor Soccer Center Per the procedures contained within the City's Park Protection Ordinance (BMC 13 12) the Bremerton Parks and Recreation Commission is pleased to present this Advisory Report on the proposed Sub - Concession and Assignment of the Pendergast Park Indoor Soccer Center Concession Agreement for your consideration The Parks Commission reviewed this item at a publicized February 11th special meeting and at our February 25"' regular monthly meeting and we believe it is in the best interest of the City to move forward on this item allowing Olympic Soccer and Sports Center LLC (OSSC) to Sub - Concession the Concession Agreement for the Indoor Soccer Center to Keystone Financial Management Inc (Keystone) We also believe that the 36 month term of this Sub Concession which allows Keystone to purchase the Indoor Soccer Center from OSSC and operate it under the terms of the amended 2001 Concession Agreement between the City and OSSC is in the best interest of the City This arrangement as proposed keeps the purpose of the original Concession Agreement intact and helps to insure the continued operation and improvement of the Indoor Soccer Center as an important component of the recreational opportunities afforded to Bremerton residents During the February 11th meeting the Parks Commission heard presentations from Keystone principal Bill Wright and OSSC managing partner Dennis Michael Mr Wright has a long history as a customer of the Soccer Center in addition to involvement as a soccer parent with West Sound Soccer FC He shared his vision for taking the Indoor Soccer Center to the next level of service including a desire to make capital improvements to enhance the appearance, functionality and atmosphere at the facility, to improve the management of the facility, to increase the usage of the facility, to work in improving the marketing, and to work with the Parks Department regarding the surrounding park's shared infrastructure Mr Wright shared his selection of a full -time experienced manager that would take over the day to day operation of the center and an outline for technology /software improvements to enhance the customer experience Mr Michael endorsed the improvements presented by Bill Wright as essential to the sustainability and growth of the business The Parks Director, Wyn Birkenthal, and his staff indicated that they are supportive of the Keystone's approach The Parks Commission believes the Sub - Concession and planned Assignment of the operation of the Indoor Soccer Center is a continuation of the existing use of this park property and presents a solid opportunity for Pendergast Park and the City to become a regional soccer hub, especially when combined with the upcoming artificial turfing of the 2 outdoor lighted soccer fields by West Sound Soccer FC We also find the Sub - Concession assignment to Keystone will not impinge upon existing and future softball activities at Pendergast Park Chairman, John Hayes Larson AGENDA BILL CITY OF BREMERTON CITY COUNCIL ■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeee■ SUBJECT Public Hearing Study Session Date February 26, 2014 Ordinance No 5241 to revoke the COUNCIL MEETING Date March 5, 2014 Wheaton - Riddell District Center Department DCD Subarea Plan Presenter Andrea L Spencer Phone 360 473 5283 SUMMARY On October 3, 2007 the City Council passed Ordinance No 5025, which adopted the Wheaton - Riddell District Center Subarea Plan Since the time of plan adoption, there have been limited economic activities within this District Center, and the activities that have occurred have been for budding reuse, without any significant new budding construction On February 18, 2014 the Planning Commission held a public workshop to discuss the success of ' the subarea plan The Commission made a determination that the regulations in the subarea plan are an impediment to investment in redevelopment of this Center The Commission committed to a work program in 2014 to develop a recommendation for revised zoning standards to implement the City's Comprehensive Plan that facilitates redevelopment of the District Center In the meantime, the Commission has recommended immediate revocation of the adopted subarea plan Until such time as the Council adopts revised zoning for this District Center, the zoning of the site will revert to that which was in place prior to subarea plan adoption in 2007 (see Exhibit A of the Ordinance) ATTACHMENTS Ordinance No 5241 FISCAL IMPACTS (Include Budgeted Amount) No impacts STUDY SESSION AGENDA ❑ No Presentation ® Full Presentation STUDY SESSION ACTION ❑ Consent Agenda ❑ General Business ® Public Hearing RECOMMENDED MOTION Move to pass Ordinance No 5241 revoking the Wheaton - Riddell District Center Subarea Plan that was adopted by Ordinance No 5025 COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13 ORDINANCE NO. 5241 AN ORDINANCE of the City Council of the City of Bremerton, Washington, revoking the Wheaton - Riddell District Center Subarea Plan established on October 3, 2007, and repealing Ordinance No 5025 establishing the Wheaton - Riddell District Center Subarea Plan WHEREAS, on October 3, 2007, the City Council passed Ordinance No 5025, which adopted the Wheaton - Riddell District Center Subarea Plan, and WHEREAS, since the time of plan adoption, there have been limited economic activities within this District Center, and the activities that have occurred have been for building reuse, without any significant new building construction, and WHEREAS, on February 18, 2014, the Planning Commission held a public workshop to discuss the Wheaton - Riddell District Center Subarea Plan (Subarea Plan), and WHEREAS, the Planning Commission found that the regulations contained in the Subarea Plan are an impediment to redevelopment and therefore the growth goals for the District Center and the Comprehensive Plan cannot be met, and WHEREAS, the Planning Commission recommends that the City Council immediately revoke the Wheaton - Riddell District Center Subarea Plan to facilitate the growth goals of the Comprehensive Plan, and WHEREAS, in 2014 the Planning Commission will be analyzing the District Center and will be developing a recommendation for revised zoning standards to further implement the City's Comprehensive Plan, and WHEREAS, upon revocation of the Wheaton - Riddell District Center Subarea Plan, the zoning for the area will revert to the zoning which was in place prior to the Subarea Plan adoption in 2007, and WHEREAS, the prior zoning will remain in effect until such time as new zoning standards are adopted for the Wheaton - Riddell District Center, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION 1 The Wheaton - Riddell District Center Subarea Plan adopted by Ordinance No 5025 on October 3, 2007, is hereby revoked SECTION 2 Ordinance No 5025 establishing the Wheaton - Riddell District Center Subarea Plan is hereby repealed in its entirety 1 Wheaton - Riddell Subarea Plan Revocation SECTION 3. Upon the effective date of this ordinance, the zoning for the Wheaton - Riddell District Center will revert to the zoning which was in place prior to the Subarea Plan adoption in 2007 as set forth in Exhibit A attached hereto SECTION 4. Severability If any one or more sections, subsections, or sentences of this Ordinance are held to be'unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect SECTION S. Effective Date This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law PASSED by the City Council the day of 9 2014 GREG WHEELER, Council President Approved this day of 5 2014 PATTY LENT, Mayor ATTEST APPROVED AS TO FORM SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney PUBLISHED the day of , 2014 EFFECTIVE the day of , 2014 ORDINANCE NO R \Lega]\Legal \Ordinances \Community Development \Wheaton Riddell Sub -Area Plan Revocation doc docx 2 Wheaton Riddell Subarea Plan Revocation EXHIBIT A Wheaton - Riddell District Center Zoning Prior to Subarea Plan Adoption in 2007 _ y _ r k { j q �"'— r-- --�• ff q �, o nes P m f LJT .p fli j, �q I � . .�..w....., { I � t LLB { r � B m v G+ A 8tit 4 it `_ A "MM IM ` I [ t L e i gend R -10* - Low Density Residential DCC — District Center Core White Area — Kitsap County Jurisdiction From Lori Smith on behalf of City Council Sent Wednesday, February 26, 2014 2 15 PM To 'Richard Nerf' Subject RE Citizen Comments - Wheaton - Riddell Subarea Plan (Richard Nerf) Mr Nerf, Thank you for your e-mail, which I have forwarded to the Council Members for their review and consideration A copy was also forwarded to Community Development Director Andrea Spencer for her information, and a copy will be included in the record It is appreciated that you took the time to submit your comments Sincerely, Lori Smith Legislative Assistant Bremerton City Council (360) 473 -5280 - - - -- Original Message---- - From Richard Nerf [ mailto rbne!hrC&comcast net Sent Wednesday, February 26, 2014 139 PM To City Council Subject Wheaton- Riddel subarea plan I would like to offer the following as testimony for the discussion of the Wheaton- Riddel subarea plan mentioned in today's Kitsap Sun The only reason to drop the subarea plan is if it is truly stifling development The city could test this hypothesis by putting a one- or two -year moratorium on the subarea plan and see if the developers come If few projects begin, then the plan is not the issue I would hate to see thoughtful prior work by the Planning Commission abandoned for the wrong reason, because "everybody knows" what ain't so Richard Nerf 1600 Madrona Point Drive Bremerton, WA 98312 i