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HomeMy WebLinkAbout02/08/2017 AGENDA PACKETCITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 I Phone (360) 473-5280 FEBRUARY 8, 2017 CITY COUNCIL STUDY SESSION 5:00 PM in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public but there will be no opportunities for input or participation; no action is anticipated during the Study Session; and the content of these items is subject to change. If approved by Council, the items will be placed on the February 13, 2017 City Council Special Meeting Agenda: A. INFORMATION BRIEFINGS 1. Update on the Bremerton Parking Study — Shannon Corin, City Clerk; and BERK Consultants B. NO PRESENTATION PLANNED - The following items are budgeted items or subjects that have been raised with the appropriate Council Committee Members: 1. Confirm Re -Appointment of Harriette Bryant to the Bremerton Housing Authority Board of Commissioners 2. Confirm Appointment of Joan Hanten to the Bremerton Housing Authority Board of Commissioners 3. Purchase, Removal and Installation of (2) two EIMCO C40HT Secondary Clarifier Drive Units, from Ovivo USA, LLC of Salt Lake City, UT 4. Purchase of 2017 Toro GM360 4WD Mower with Debris Blower for the Parks Department from Turf Star, Inc of Hayward, CA 5. Purchase of 2017 Ford F-250 Pick -Up for the Parks Department from Columbia Ford of Longview, WA 6. Purchase of 2017 Ford Escape 4WD for Community Development Department from Columbia Ford of Longview, WA 7. Purchase of 2017 Ford F-350 4WD for the Forestry Division from Columbia Ford of Longview, WA 8. Purchase of (2) 2017 Chevrolet Silverado'/2 Ton Pick -Ups for the Water Department from Bud Clary Chevrolet of Longview, WA 9. Purchase of (5) Ford Interceptors for the Police Department from Columbia Ford of Longview, WA; and associated Safety Equipment from Systems for Public Safety Inc., of Lakewood, WA 10. Repair, Refurbishment, and Modification to the Fairbanks Morse Pump No. 3 at Pump Station WB -3 by Granich Engineered Products, Inc. of Seattle, WA 11. Contract Award to Northern Land Development for the David Road Water Main Replacement Project 12. Acceptance of Right -of -Way Dedication Easement on Sheldon Boulevard for the Evergreen Pointe Apartment Project 13. Proposed Public Hearing on Ordinance to Vacate Easements adjacent to 3rd Avenue, North of Sunn Fjord Lane 14. Proposed Public Hearing (2 of 2) on Amendment No. 1 for a One -Year Extension of the Sub - Concession and Assignment of Concession Agreement with the Olympic Soccer and Sports Center (OSSC), LLC C. BRIEFINGS & FULL PRESENTATIONS 1. Letter of Agreement with Bremerton Historic Ships Association for the USS Turner Joy Historic Preservation Project 2. Review and coordinate response to Harrison Medical Center's Certificate of Need Application to relocate hospital campus from Bremerton to Silverdale 3. Finalize an Agenda for the Joint Planning Workshop with Council Members, Mayor Lent, and Department Directors scheduled for Saturday, February 11, 2017 D. GENERAL COUNCIL BUSINESS o Audit Committee Briefing (1/30/17 Special Meeting) —Chair Pat Sullivan o Public Works Committee Briefing (2/6/17 Meeting) — Chair TBD o Public Safety & Parks Committee Briefing (2/8/17 Meeting) — Chair TBD o Other General Council Business (As necessary...) E. ADJOURNMENT OF STUDY SESSION ® Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 at least 24 hours prior to the meeting. INFORMATION ONLY ITEM CITY OF BREMERTON CITY COUNCIL Al SUBJECT: Update on the Bremerton Parking Study SUMMARY: Study Session Date: February 8, 2017 Presenter: Jeff Arango, BERK Consulting Phone: (206) 493-2384 BERK Consulting will be giving a presentation on the Bremerton Parking Study. 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IL T � IN 41, r r � • MI .���yp ✓� .,» - � Ire - +-j C` • ro Q1 i � s ro �••� E �--� E ro In � • L ('� O �1 O >. +j Q V O i v •� m um +-j c o V 0 _0 O — (n m1 ° Om V +� +� ro Ln u s o o Ul o ro s AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Reappointment of Study Session Date: Harriette Bryant on the Bremerton Housing COUNCIL MEETING Date: Authority Board of Commissioners Department: February 8, 2017 February 13, 2017 Executive Presenter: Mayor Lent Phone: 473-5266 SUMMARY: The Mayor is seeking confirmation of the reappointment of Harriette Bryant to another term on the Bremerton Housing Authority Board of Commissioners. Her current term expires on March 6, 2017 and the new term will expire on March 6, 2022. ATTACHMENTS: Application to the Commission is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the reappointment of Harriette Bryant to another term on the Bremerton Housing Authority Board of Commissioners with the term expiring March 6, 2022. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 SUBJECT: Confirm Appointment of Joan Hanten to the Bremerton Housing Authority Board of Commissioners AGENDA BILL CITY OF BREMERTON CITY COUNCIL Study Session Date: COUNCIL MEETING Date: Department: February 8, 2017 February 13, 2017 Executive Presenter: Mayor Lent Phone: 473-5266 SUMMARY: The Mayor is seeking confirmation of the appointment of Joan Hanten to the Bremerton Housing Authority Board of Commissioners. She would be fulfilling an unexpired term due to the resignation of Jim McDonald. The term will expire on November 27, 2017. ATTACHMENTS: Application to the Commission is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Joan Hanten to the Bremerton Housing Authority Board of Commissioners with the term expiring November 27, 2017. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 AGENDA BILL CITY OF BREMERTON B3 CITY COUNCIL SUBJECT: Purchase, Removal and Study Session Date: February 8, 2017 Installation of two (2) EIMCO C40HT COUNCIL MEETING Date: February 13, 2017 Secondary Clarifier Drive Units from Ovivo Department: PW&UM/WTP USA, LLC of Salt Lake City, UT Presenter: Pat Coxon Phone: (360 473-5448 SUMMARY: The two current EIMCO secondary clarifier drives have been in operation since the Westside wastewater plant's inception in June 1985 (32 years), and they have reached the end of their life. We requested proposals from Ovivo USA, WesTech Inc. and RSG LLC, for the purchase, removal and installation of two (2) new OEM EIMCO C40HT 110 foot diameter drives. In the received proposals, Ovivo USA was the only vendor who was able to supply the new OEM EIMCO C40HT 110 foot diameter drives. WesTech Inc. and RSG LLC were only able to offer reconditioned EIMCO drives, as well as new drives from different manufacturers, which would entail modifications to both secondary clarifiers. Based on this, it is our recommendation to purchase two (2) El MCO C40HT 110 foot diameter drives from Ovivo USA, which would also include the removal of the old drives and the installation of the new drives, in the amount of $160,041.18. ATTACHMENTS: 1) Ovivo USA; 2) LLC, WesTech Inc; 3) RSG LLC proposals. FISCAL IMPACTS (Include Budgeted Amount): The two secondary clarifier drives purchase, removal and installations is budgeted through the 2017 WW CIP, and has a budgeted amount of $150,000. The total cost for the purchase, removal and installation of two C40HT 110' secondary clarifier drives is $160,041.18, and the remaining $10,041.18 will be funded through the WWTP/PS Capital Improvement Program. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase, removal, and installation of two (2) EIMCO C40HT secondary clarifier drive units from Ovivo USA, LLC of Salt Lake City, UT. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action rov 1 V7 Worldwide Experts in Water Treatment PROPOSAL Q2017006 -CL 26 JANUARY 2017 PROJECT SUMMARY: Ovivo USA, LLC (formerly EIMCO Water Technologies — EWTTM) is pleased to offer the following proposal to provide two (2) complete new C40HT drive units as direct replacements for current C40HT drive units. Ovivo is also including drive removal & installation services. This for two (2) existing 110' dia. EIMCO C3S clarifiers installed in 1983 under serial #23046-03A/B. Ovivo C40HT Drive Unit Ovivo will manufacture and supply two (2) complete C40HT drive units to include the following: • Basic C40HT drives rated to match existing C40HT drive units • Drive torque control unit with micro switches and actuating pin • Motor drive package (1 hp TEFC motor, reducer, sprockets, chain and guard) • Ovivo paint scheme, two (2) coats of Tnemec Series N69F epoxy @ 6-8 mils DFT o Top coated with (1) coat of Tnemec Series 73 Endura Shield urethane paint @ 2-3 mils DFT (sky blue color) o Topcoat is highly resistant to abrasion, wet conditions, corrosive fumes, chemical contact and weathering • Installation fasteners & shim kit (304 SS) • O & M manual • Two (2) year warranty • FOB ship point freight prepaid and allowed • Engineering Items NOT Included • Finish or touch up painting • Lubricants or drive unit oil Drive Unit Labor Removal & Installation Services We Include: • Site mobilization • Crib up rake arms • Remove walkway • Remove existing C40HT drive unit • Install new C40HT drive unit • Reinstall walkway • Re -leveling of rakes & mechanism • Crane, mats, rigging and related equipment • Two (2) year warranty parts & installation • Demobilization of personnel and equipment • 10 hours per day • Field service startup/checkout — Ovivo service technician visit for two (2) trips of one (1) day each onsite to perform check-out and inspect C40HT drive unit installations and provide operator training Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com Items NOT Included • Draining or cleaning of tank prior to start of installation • Electrical disconnect/installation or alteration of existing electrical supply • Finish or touch up painting • Lubricants or drive unit oil • Disposal of any old lubricants/fluids • Overtime work hours or removal of old debris Price for two (2) C40HT drives w/install services complete as described above ........... $ 147,232.00 Lead time is 6-8 weeks based on current inventory levels 11aI1y/a:VA Ovivo intends to ship all Products as indicated above after receipt of approved purchase order and approved submittal drawings from Purchaser. However, the date of shipment of the Products represent Ovivo's best estimate, but is not guaranteed, and Ovivo shall not be liable for any damages due to late delivery. The Products shall be delivered to the delivery point or points in accordance with the delivery terms stated in this proposal. If such delivery is prevented or postponed by reason of Force Majeure, as defined in Ovivo's standard terms and conditions of sale, Ovivo shall be entitled at its option to tender delivery to Purchaser at the point or points of manufacture, and in default of Purchaser's acceptance of delivery, to cause the Products to be stored at such a point or points of manufacture at Purchaser's expense. Such tender, if accepted, or such storage, shall constitute delivery for all purposes of this proposal. If shipment is postponed at request of Purchaser, or due to delay in receipt of shipping instructions, payment of the purchase price shall be due on notice from Ovivo that the Products are ready for shipment. Handling, moving, storage, insurance and other charges thereafter incurred by Ovivo with respect to the Products shall be for the account of Purchaser and shall be paid by Purchaser when invoiced. PRICING TERMS All prices quoted are in US Dollars. Prices are good for 45 days. After expiration of the pricing effective period, prices will be subject to review and adjustment. Prices quoted are FOB point of shipment, with freight included to an accessible point nearest the jobsite. Federal, state or local sales, use or other taxes are not included in the sales price. PAYMENT TERMS Payment terms are: One hundred percent (100%) payment due within forty five (45) days after Purchaser's receipt of invoice. Invoice will be submitted after all materials have been received at the job site or they have been successfully installed by an Ovivo contractor and Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com TAXFC the field service check-out and start-up procedure is finalized. Credit is subject to acceptance by the Ovivo Credit Department. Purchaser shall remit payment for proper invoices received from Ovivo in accordance with the payment terms stated above even if the Purchaser has not been paid by the Purchaser's customer (the "Owner"), if Purchaser is not the end-user of the Products. Payments are due within forty five (45) days after Purchaser's receipt of invoice. Overdue and unpaid invoices are subject to a service charge of 2% per month until paid. If Purchaser requests or causes cancellation, suspension or delay of Ovivo's work, Purchaser shall accept transfer of title and pay Ovivo all appropriate charges incurred up to date of such event plus Ovivo's overhead and reasonable profit. Additionally, all charges related to and risks incidental to storage, disposition and/or resumption of work shall be borne solely by Purchaser. Full payment for all work shall be due and payable forty five (45) days from the date work is placed into storage. Federal, State or local sales, use or other taxes are not included in the sales price. Such taxes, if applicable, shall be for Purchaser's account. BACKCHARGES In no event shall Purchaser/Owner do or cause to be done any work, purchase any services or material or incur any expense for the account of Ovivo, nor shall Ovivo be responsible for such work or expenses, until after Purchaser/Owner has provided Ovivo's PROJECT MANAGER full details (including estimate of material cost and amount and rate of labor required) of the work, services, material or expenses, and Ovivo has approved the same in writing. Ovivo will not accept Products returned by Purchaser/Owner unless Ovivo has previously accepted the return in writing and provided Purchaser/Owner with shipping instructions. "PURCHASE ORDER SUBMISSION" In an effort to ensure all purchase orders are processed timely and efficiently, please submit all purchase order documentation to the following department and address: Attn: Order Entry Administrator Ovivo USA, LLC 4246 Riverboat Road - Suite 300, Salt Lake City, Utah 84123-2583 Fax #: 801-931-3080 Tel. #: 801-931-3240 chad.layton@ovivowater.com Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com ADDITIONAL FIELD SERVICE When included and noted in the Product pricing of each proposal item, Ovivo will supply the service of a competent field representative to inspect the completed installation and adjustment of equipment, supervise initial operation, and instruct Owner's personnel in the operation and maintenance of each proposal item for the number of eight (8) hour days. Notwithstanding Ovivo's performance of the above -referenced services, Ovivo shall not be held liable for any faulty workmanship or other defects in the Products' installation, or for other goods and/or services, performed by third parties unless such goods and/or services are expressly included under Ovivo's scope of work. If additional service is required over and above the Field Services described above, it will be furnished to the Purchaser and billed to him at the current rate for each additional day required, plus travel and lodging expenses incurred by the service personnel during the additional service days. It shall be the Purchaser's responsibility to provide for all necessary lubrication of all equipment prior to placing equipment in operation. All equipment must be in operating condition and ready for the Field Service Engineer when called to the project location. Should the Contractor not be ready when the Field Service Engineer is requested or if additional service is requested, the Ovivo current service rates will apply for each additional day required, plus travel and lodging expenses incurred by the service personnel during the additional service days. SURFACE PREPARATION AND PAINTING GENERAL INFORMATION If painting the Products is included under Ovivo's scope of work, such Products shall be painted in accordance with Ovivo's standard practice. Shop primer paint is intended to serve only as minimal protective finish. Ovivo will not be responsible for condition of primed or finished painted surfaces after equipment leaves its shops. Purchasers are invited to inspect painting in our shops for proper preparation and application prior to shipment. Ovivo assumes no responsibility for field service preparation or touch-up of shipping damage to paint. Painting of fasteners and other touch-up to painted surfaces will be by Purchaser's painting contractor after mechanism erection. Clarifier motors, gear motors and center drives shall be cleaned and painted with manufacturer's standard primer paint only. It is our intention to ship major steel components as soon as fabricated, often before drives, motors and other manufactured components. Unless you can insure that shop primed steel shall be field painted within thirty (30) days after arrival at the jobsite, we encourage you to purchase these components in the bare metal (no surface prep or primer) condition. Ovivo cannot accept responsibility for rusting or deterioration of shop applied prime coatings on delivered equipment if the primed surfaces have not been field painted within thirty (30) days of arrival at the jobsite using manufacturers' standard primers. Other primers may have less durability. Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com GENERAL ITEMS NOT INCLUDED Unless specifically and expressly included above, prices quoted by Ovivo do not include unloading, hauling, erection, installation, piping, valves, fittings, stairways, ladders, walkways, grating, wall spools, concrete, grout, sealant, dissimilar metal protection, oakum, mastic, field painting, oil or grease, electrical controls, wiring, mounting hardware, welding, weld rod, shims, leveling plates, protection against corrosion due to unprotected storage, special engineering, or overall plant or system operating instructions or any other products or services. Performance and payment security, including but not limited to bonds, letters of credit, or bank guarantees, are not included, but can be provided if purchased for an additional cost. MANUALS The content of any and all installation, operation and maintenance or other manuals or documents pertaining to the Products are copyrighted and shall not be modified without the express prior written consent of Ovivo. Ovivo disclaims any liability for claims resulting from unauthorized modifications to any such manuals or other documents provided by Ovivo in connection with the Project. WARRANTY AND CONDITIONS Ovivo standard Terms and Conditions of Sale is attached and made an essential part of this proposal. These terms and conditions are an integral part of Ovivo's offer of Products and related services and replace and supersede any terms and conditions or warranty included in Purchaser or Owner requests for quotation or specifications and cannot be changed without written approval from an authorized representative of Ovivo. Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com 1. ACCEPTANCE. The proposal of OVIVO USA, LLC ("SELLER"), as well as these terms and conditions of sale (collectively the "Agreement'), constitutes SELLER's contractual offer of goods and associated services, and PURCHASER's acceptance of this offer is expressly limited to the terms of the Agreement. The scope and terms and conditions of this Agreement represent the entire offer by SELLER and supersede all prior solicitations, discussions, agreements, understandings and representations between the parties. Any scope or terms and conditions included in PURCHASER's acceptance/purchase order that are in addition to or different from this Agreement are hereby rejected. 2. DELIVERY. Any statements relating to the date of shipment of the Products (as defined below) represent SELLER'S best estimate, but is not guaranteed, and SELLER shall not be liable for any damages due to late delivery. The Products shall be delivered to the deliverypoint or points in accordance with the delivery terms stated in SELLER's proposal. If such delivery is prevented or postponed by reason of Force Majeure (as defined below), SELLER shall be entitled at its option to tender delivery to PURCHASER at the point or points of manufacture, and in default of PURCHASER's acceptance of delivery to cause the Products to be stored at such a point or points of manufacture at PURCHASER'S expense. Such tender, if accepted, or such storage, shat constitute delivery for all purposes of this agreement. If shipment is postponed at request of PURCHASER, or due to delay in receipt of slapping instructions, payment of the purchase price shall be due on notice from SELLER that the Products are ready for shipment. Handling, moving, storage, insurance and other charges thereafter incurred by SELLER with respect to the Products shall be for the account of PURCHASER and shall be paid by PURCHASER when invoiced. 3. TALE AND RISK OF LOSS. SELLER shall retain the fullest right, title, and interest in the Products to the extent permitted by applicable law, including a security interest in the Products, until the full purchase price has been paid to SELLER. The giving and accepting of drafts, notes and/or trade acceptances to evidence the payments due shall not constitute or be construed as payment so as to pass SELLER's interests until said drafts, notes and/or trade acceptances are paid in full. Risk of Loss shall pass to PURCHASER at the delivery point. 4. PAYMENT TERMS. SELLER reserves the right to ship the Products and be paid for such on a pro rata basis, as shipped If payments are not made by the due date, interest at a rate of two percent (2%) per month, calculated daily, shall apply from the due date for payment. PURCHASER is liable to pay SELLER'S legal fees and all other expenses in respect of enforcing or attempting to enforce any of SELLER'S rights relating to a breach or threatened breach of the payment terms by PURCHASER. . 5. TAXES. Unless otherwise specifically provided in SELLER's quotation/proposal; PURCHASER shall pay and/or reimburse SELLER, in addition to the price, for all sales, use and other taxes, excises and charges which SELLER may pay or be required to pay to any government directly or indirectly in connection with the production, sale, transportation, and/or use by SELLER or PURCHASER, of any of the Products or services dealt with herein (whether the same may be regarded as personal or real property). PURCHASER agrees to pay all property and other taxes which may be levied, assessed or charged against or upon any of the Products on or after the date of actual shipment, or placing into storage for PURCHASER'S account. 6. MECHANICAL WARRANTY. Solely for the benefit of PURCHASER, SELLER warrants that new equipment and parts manufactured by it and provided to PURCHASER (collectively, "Products") shall be free from defects in material and workmanship. The warranty period shall be twelve (12) months from startup of the equipment not to exceed eighteen (18) months from shipment. If any of SELLER'S Products fail to comply with the foregoing warranty, SELLER shall repair or replace free of charge to PURCHASER, EX WORKS SELLER'S FACTORIES or other location that SELLER designates, any Product or parts thereof returned to SELLER, which examination shall show to have failed under normal use and service operation by PURCHASER within the Warranty Period, provided, that if it would be impracticable for the Product or part thereof to be returned to SELLER, SELLER will send a representative to PURCHASER's job site to inspect the Product. If it is determined after inspection that SELLER is liable under this warranty to repair or replace the Product or part thereof, SELLER shall bear the transportation costs of (a) returning the Product to SELLER for inspection or sending its representative to thej ob site and (b) returning the repaired or replaced Products to PURCHASER; however, if it is determined after inspection that SELLER is not liable under this warranty, PURCHASER shall pay those costs. For SELLER to be Gable with respect to this warranty, PURCHASER must make its claims to SELLER with respect to this warranty in writing no later than thirty (30) days after the date PURCHASER discovers the basis for its warranty claim and in no event more than thirty (30) days after the expiration of the Warranty Period. In addition to any other limitation or disclaimer with respect to this warranty, SELLER shall have no liability with respect to any of the following: (i) failure of the Products, or damages to them, due to PURCHASER's negligence or willful misconduct, abuse or improper storage, installation, application or maintenance (as specified in any manuals or written instructions that SELLER provides to the PURCHASER); (ii) any Products that have been altered or repaired in any way without SELLER'S prior written authorization: (iii) The costs of dismantling and reinstallation of the Products; (iv) any Products damaged while in transit or otherwise by accident; (v) decomposition of Products by chemical action, erosion or corrosion or wear to Products or due to conditions of temperature, moisture and dirt; or (vi)claims with respect to parts that are consumable and normally replaced during maintenance such as filter media, filter drainage belts and the like, except where such parts are not performing to SELLER'S estimate of normal service life, in which case, SELLER shall only be Gable for the pro rata cost of replacement of those parts based on SELLER'S estimate of what the remaining service life of those parts should have been; provided, that failure of those parts did not result from any of the matters listed in clauses (i) through (v) above. With regard to third -party parts, equipment, accessories or components not of SELLER's design, SELLER'S liability shall be limited solely to the assignment of available third -party warranties. THE PARTIES AGREE THAT ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND MERCHANTABILITY, WHETHER WRITTEN, ORAL OR STATUTORY, ARE EXCLUDED TO THE FULLEST EXTENT PERMISSIBLE BY LAW. All warranties and obligations of SELLER shall terminate if PURCHASER fails to perform its obligations under this Agreement including but not limited to any failure to pay any charges due to SELLER. SELLER'S quoted price for the Products is based upon this warranty. Any increase in warranty obligation may be subj ect to an increase in price. 7. CONFIDENTIAL INFORMATION. All nonpublic information and data furnished to PURCHASER hereunder, including but not limited to price, size, type and design of the Products is the sole property of SELLER and submitted for PURCHASER'S own confidential use solely in connection with this Agreement and is not to be made known or available to any third party without SELLER'S prior written consent. 8. PAINTING. The Products shall be painted in accordance with SELLER'S standard practice, and purchased items such as motors, controls, speed reducers, pumps, etc., will be painted in accordance with manufacturers' standard practices, unless otherwise agreed in writing. 9. DRAWINGS AND TECHNICAL DOCUMENTATION. When PURCHASER requests approval of drawings before commencement of manufacture, shipment may be delayed if approved drawings are not returned to SELLER within fourteen (14) days of receipt by PURCHASER of such drawings for approval. SELLER will famish only general arrangement, general assembly, and if required, wiring diagrams, erection drawings, installation and operation -maintenance manuals for SELLER'S equipment (in English language). SELLER will supply six (6) complete sets of drawings and operating instructions. Additional sets will be paid for by PURCHASER. Electronic files, if requested from SELLER, will be provided inpdf, jpg or of format only. 10. SET OFF. This Agreement shall be completely independent of all other contracts between the parties and all payments due to SELLER hereunder shall be paid when due and shall not be setoff or applied against any money due or claimed to be due from SELLER to PURCHASER on account of any other transaction or claim. except for archival or security purposes; b) not to use the program on any computer other than the computer with which it is supplied, and c) to limit access to the program to those of its employees who are necessary to permit authorized use of the program. PURCHASER agrees to execute and be bound by the terms of any software license applicable to the Products supplied. 11. SOFTWARE. PURCHASER shall have a nonexclusive and nontransferable license to use any information processing program supplied by SELLER with the Products. PURCHASER acknowledges that such programs and the information contained therein is Confidential Information and agrees: a) not to copy or duplicate the program 12. PATENT INDEMNITY. SELLER will defend at its own expense any suit instituted against PURCHASER based upon claims that SELLER's Product hereunder in and of itself constitutes an infringement of any valid apparatus claims of any United States patent issued and existing as of the date of this Agreement, if notified promptly in writing and given all information, assistance, and sole authority to defend and settle the same, and SELLER shall indemnify the PURCHASER against such claims of infringement. Furthermore, in case the use of the Products is enjoined in such suit or in case SELLER otherwise deems it advisable, SELLER shall, at its own expense and discretion, (a) procure for the PURCHASER the right to continue using the Products, (b) replace the same with non -infringing Products, (c) modify the Product so it becomes non -infringing, or (d) remove the Products and refund the purchase price less freight charges and depreciation. SELLER shall not be Gable for, and PURCHASER shall indemnify SELLER for, any claim of infringement related to (a) the use of the Products for any purpose other than that for which it was famished by SELLER, (b) compliance with equipment designs not furnished by SELLER or (c) use of the Products in combination with any other equipment. The foregoing states the sole liability of SELLER for patent infringement with respect to the Products 13. GENERAL INDEMNITY. Subject to the rights, obligations and limitations of liabilities of the parties set forth in this Agreement, PURCHASER shall protect and indemnify SELLER, its ultimate parent, its ultimate parents subsidiaries and each of their respective officers, directors, employees and agents, from and against all claims, demands and causes of action asserted by any entity to the extent of PURCHASER's negligence or willful misconduct in connection with this Agreement. 14. DEFAULT, TERMINATION. In the event that PURCHASER becomes insolvent, commits an act of bankruptcy or defaults in the performance of any term or condition of thus Agreement, the entire unpaid portion of the purchase price shall, without notice or demand, became immediately due and payable. SELLER at its option, without notice or demand, shall be entitled to sue for said balance and for reasonable legal fees, plus out-of-pocket expenses and interest, and/or to enter any place where the Products are located and to take immediate possession of and remove the Products, with or without legal process; and/or retain all payments made as compensation for the use of the Products: and/or resell the Products, without notice or demand, for and on behalf of the PURCHASER, and to apply the net proceeds from such sale (after deduction from the sale price of all expenses of such sale and all expenses of retaking possession, repairs necessary to put the Products in saleable condition, storage charges, taxes, liens, collection and legal fees and all other expenses in connection therewith) to the balance then due to SELLER for the Products and to receive from the PURCHASER the deficiency between such net proceeds of sale and such balance. PURCHASER hereby waives all trespass, damage and claims resulting from any such entry, repossession, removal, retention, repair, alteration and sale. The remedies provided in this paragraph are in addition to and not limitations of any other rights of SELLER. 15. CANCELLATION. PURCHASER may terninate this Agreement for convenience upon giving SELLER thirty (30) days prior written notice of such fact and paying SELLER for all costs and expenses (including overhead) incurred by it in performing its work and closing out the same plus a reasonable profit thereon. All such costs and expenses shall be paid to SELLER within ten (10) days of the termination of the Agreement, or be subject to an additional late payment penalty of five percent (5%) of the total amount of costs and expenses owed. 16. REMEDIES. The rights and remedies of the PURCHASER in connection with the goods and services provided by SELLER hereunder are exclusive and limited to the rights and remedies expressly stated in this Agreement. 17. INSPECTION. PURCHASER is entitled to make reasonable inspection of Products at SELLER's facility. SELLER reserves the right to determine the reasonableness of the request and to select an appropriate time for such inspection. All costs of inspections not expressly included as an itemized part of the quoted price of the Products in this Agreement shall be paid by PURCHASER. 18. WAIVER Any failure by SELLER to enforce PURCHASER's strict performance of any provision of this Agreement will not constitute a waiver of its right to subsequently enforce such provision or any other provision of this Agreement. 19. COMPLIANCE WITH LAWS. If applicable laws, ordinances, regulations or conditions require anything different from, or in addition to, that called for by this Agreement, SELLER will satisfy such requirements at PURCHASER'S written request and expense. 20. FORCE MAJEURE. If SELLER is rendered unable, wholly or in material part, by reason of Force Majeure to carry out any of its obligations hereunder, then on SELLER's notice in writing to PURCHASER within a reasonable time after the occurrence of the cause relied upon, such obligations shall be suspended. "Force Majeure" shall include, but not be limited to, acts of God, laws and regulations, strikes, civil disobedience or unrest, lightning, fire, flood, washout, storm, communication lines failure, delays of the PURCHASER or PURCHASER's subcontractors, breakage or accident to equipment or machinery, wars, police actions, terrorism, embargos, and any other causes that are not reasonably within the control of the SELLER. If the delay is the result of PURCHASER's action or inaction, then in addition to an adjustment in time, SELLER shall be entitled to reimbursement of costs incurred to maintain its schedule. 21. INDEPENDENT CONTRACTOR It is expressly understood that SELLER is an independent contractor, and that neither SELLER nor its principals, partners, parents, subsidiaries, affiliates, employees or subcontractors are servants, agents, partners, joint ventures or employees of PURCHASER in any way whatsoever. 22. SEVERABH.ITY. Should any portion of this Agreement, be held to be invalid or unenforceable under applicable law then the validity of the remaining portions thereof shall not be affected by such invalidity or unenforceability and shall remain in full force and effect. Furthermore, any invalid or unenforceable provision shall be modified accordingly within the confines of applicable law, giving maximum permissible effect to the parties' intenticus expressedherein. 23. CHOICE OF LAW, CHOICE OF VENUE. This Agreement shall be governed and construed in accordance with the laws of the State of Utah, without regard to its Hiles regarding conflicts or choice of law. The parties submit to the jurisdiction and venue of the state and federal courts located in Salt Lake City, Utah. 24. ASSIGNMENT. PURCHASER shall not assign or transfer this Agreement without the prior written consent of the SELLER. Any attempt to make such an assignment or transfer shall be null and void. SELLER shall have the authority to assign, or otherwise transfer, its rights and obligations in connection with this Agreement, in whole or in part, upon prior written notice to PURCHASER. 25. LIMITATION ON LIABILITY. TO THE EXTENT PERMISSIBLE BY LAW, SELLER SHALL HAVE NO FURTHER LIABILITY IN CONNECTION WITH THIS AGREEMENT IN EXCESS OF THE COST OF CORRECTING ANY DEFECTS, OR IN THE ABSENCE OF ANY DEFECT, IN EXCESS OF THE VALUE OF THE PRODUCTS SOLD HEREUNDER. NOTWITHSTANDING ANY LIABILITIES OR RESPONSIBILITIES ASSUMED BY SELLER HEREUNDER, SELLER SHALL IN NO EVENT BE RESPONSIBLE TO PURCHASER OR ANY THIRD PARTY, WHETHER ARISING UNDER CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, FOR LOSS OF ANTICIPATED PROFITS, LOSS BY REASON OF PLANT SHUTDOWN, NON-0PERATION OR INCREASED EXPENSE OF OPERATION, SERVICE INTERRUPTIONS, COST OF PURCHASED OR REPLACEMENT POWER, COST OF MONEY, LOSS OF USE OF CAPITAL OR REVENUE OR ANY OTHER INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL LOSS OR DAMAGE, WHETHER ARISING FROM DEFECTS, DELAY, OR FROM ANY OTHER CAUSE WHATSOEVER REVISION DATE—SEPTEMBER 2010 Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com NORTH AMERICAN FIELD SERVICE RATE SHEET Effective January 1, 2013 Standard (Travel) Daily Rate (8 hour day) $ 1,200.00 Hourly Rate (4 hour minimum) $ 150.00 Standard (Labor) Daily Rate (8 hour day) $ 1,200.00 Hourly Rate (4 hour minimum) $ 150.00 Saturday Daily Rate (8 hour day) $ 1,800.00 Hourly Rate (4 hour minimum) $ 225.00 Sundays/Holidays * Daily Rate (8 hour day) $ 2,400.00 Hourly Rate (4 hour minimum) $ 300.00 Overtime ** Hourly Rate - Standard Day $ 225.00 Hourly Rate - Weekends & Holidays $ 300.00 * Except Christmas Day and New Year's Day ** For all hours worked over eight (8) hours per day UNLESS OTHERWISE ARRANGED; EXPENSES ARE CHARGED AT ACTUAL COST PLUS 10% Please Note: All of the rates provided are portal to portal. In addition, travel and living expenses will be invoiced at actual cost PLUS 10 % and documentation will be provided for these expenses. If a fixed Per Diem rate is required, it will be charged at $250.00 per day (lodging and meals) with the exception of the East Coast where the price will be $300.00). Travel on Saturday, Sunday or Holidays, and after 8 hours per day will be billed at the overtime rate. • Use of Ovivo Fleet vehicles for travel will be charged at the rate of $0.56 per mile. Ovivo USA, LLC 14246 Riverboat Road, Suite 300, Salt Lake City, Utah 84123 USA I Tel: (801) 931-30001 Fax: (801) 931-3080 ovivowater.com ffIV,r r 4MON—T—t—Aol, pill —�< , ., . Bremerton Primary Treatment Plant Owner: City of Bremerton Bremerton, Washington 98312 Scope of Sunn1v Two (2) new WesTech Drive Units Option: 1. Turnkey Installation of the two (2) new WesTech Drive Units WES'rEcm Furnished by: WesTech Engineering, Inc Salt Lake City, Utah 84115 Contact: Jess Kelley/ David Mortensen Phone: (801) 265-1000 Fax: (801) 265-1080 jkelley@westech-inc.com dmortensen@westech-inc.com Represented by: Goble Sampson John Darch Issaquah, Washington 98027 Phone: (425) 392-0491 jdarch@goblesampson.com WesTech Proposal: 1660956 Date: 3 January 2017 WESIMCM EQUIPMENT AND SERVICE DESCRIPTION ITEM "A" - Two (2) Retrofit 42-inchCage Drive Units Scope of Supply: WesTech shall supply two (2) retrofit 42 -inch cage drive units, WesTech Model No. DV8050, to replace the existing Eimco C40HT cage drives that are installed on 110 -foot diameter secondary clarifiers. Equipment: Each drive unit to be furnished complete with the following components: • A Standard WesTech Cage Drive Unit for: Output Torque (ft -lbs) AGMA 20 -Year Continuous: 38,000 Momentary Peak Output Torque (ft -lbs): 76,000 Rake Output Speed (RPM): 0.027 Overturning Moment of Main Bearing (ft -lbs): 466,000 Direction of Rotation: Clockwise • An epoxy -coated steel drive housing and base, which includes a SSPC-SP6/NACE 3 commercial blast for surface preparation, one (1) primer coat of Tnemec N140F-1255 Beige, 3-9 mils DFT, and one (1) final coat of Tnemec 1074U-85712 Dark Blue Aliphatic Acrylic Polyurethane enamel, 2 to 5 mils DFT. • Forged alloy steel, contoured -race, locked -ring precision main bearing, and integral spur gear with L-10 life rating in excess of 100 years (876,000 hrs.). • Oil lubrication of the main gear and pinion; grease lubrication of the main bearing. • A direct -coupled cycloidal speed reducer. • A 1 HP TEFC motor suitable for 230/460 volt, 3-phase, 60 -hertz supply power. • Cage ear adapters, bridge tie -down adapters, and column top adapter, all designed and manufactured according to the detailed field measurements taken by WesTech. • Stainless steel weatherproof WesTech Torkmatic torque control with visual indicator and two limit switches set for an Alarm torque at 100% & for a Shut Down Torque at 120%. Freight: Freight to the jobsite is FOB Shipping Point with freight allowed. All claims for damage or loss in shipment shall be initiated by purchaser. Delivery: The estimated shipment time is 14 weeks after an approved purchase order is received at the WesTech office. If submittals are required, add an additional 2 weeks to the shipment time. Warranty: One (1) year warranty. Field Service: To include two (2) on-site trips — the first trip is to take pre -design field measurements, and the second trip (after the drive units are installed) is to inspect and certify the final installation of the drive units, perform start-up, and to provide maintenance instruction to plant personnel. Clarifications/Comments: If only one replacement drive unit is ordered, the unit price of the drive unit will increase. Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 1660956_RO_ProposalDrvieUnitsAndlnstallation_2017Jan03_M078 2 WESIMCM ITEM "B" — Turnkey Installation Services for Two (2) Drive Units (126272) Scope of Supply: WesTech shall supply turnkey installation services to install two (2) WesTech 42 -inch Cage Drive Units on each of the 110 -foot diameter secondary clarifiers, at the Bremerton Primary Treatment Plant in Bremerton, Washington. Scope of Work: WesTech will provide the manpower, supervision, and tools to remove the two (2) existing drive units and install the two (2) retrofit WesTech 42 -inch cage drive units. WesTech includes the following: • Site mobilization and demobilization including— personnel, equipment (as needed), and travel time to and from the job site. • Cranes, mats, rigging equipment as needed. • Support of super structure as needed. • Removal of the existing Eimco C40HT cage drive units. • Installation of the new WesTech 42 -inch cage drive units. • Leveling of drive units and rake arms. Service Time: Two (2) weeks after the drive units ship from WesTech, the installation services crew will be available to install the new drive units. The actual installation date will be arranged with the purchaser prior to the drive units being shipped. The work is to occur during a Monday through Friday work -week . The work day consists of one shift, up to 8 hours per day. Field Service: None. These services have been offered with Item "A" of this proposal. WesTech does not include the following: • Draining and cleaning of the tank. • Electrical disconnect or connect. • Overtime work hours or additional days —overtime rate $195/hour, additional day rate $1,235 (includes living expenses). • Disposing of old debris/parts. • Grease or oil for maintenance lubrication. • Grout or civil work. Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 1660956_RO_ProposalDrvieUnitsAndlnstallation_2017Jan03_M078 3 WESYECM Installation Clarifications: Special Requirements: - Dehumidification equipment allowances are not included nor anticipated. - Special considerations for breathing apparatus, air quality monitoring, vacuum evacuation of weld fumes, and fans have not been included. - Special paint testing (spark, holiday) is not included. Labor: 1 . Price is based on open shop labor practices and rates. 2. WesTech's Project Manager/Representative will be on site at mobilization, at completion, and will make periodic site visits during installation to monitor progress. 3. Price is based on free and easy access to and around tank foundations and tank shell for no less than 12 hours during the daytime for 7 days per week. Although pricing may not include working during all the access time, we require access during these times to maintain schedule due to events that cannot be foreseen. 4. Price is based on one (1) move -in to the jobsite with clear and continuous access to and from the jobsite. If another move -in is required due to purchaser's delays or if foundations are not complete and stand-by time is required, the costs incurred by WesTech shall be to the purchaser's account and completion date will be delayed, without penalty to WesTech, by the number of days until WesTech crews remobilize on site. 5. Price does not include personnel or equipment (blankets, tenting, hose, etc.) assigned exclusively for the purpose of safety and/or fire watch/protection and/or security and/or quality/inspection unless specifically noted above. OSHA does not require a hole watch and we have assumed the tank is a non -permit -required confined space which does not require a hole watch. 6. We assume the construction parking lot to be close enough to the work site that bussing is not required. If bussing is required, all associated costs shall be for the purchaser's account. 7. If field delays are caused due to non-WesTech errors, standard T&M rates apply to the delay. General Conditions: Arbitration -Any controversy or claim arising out of or relating to this proposal or breach thereof, shall be settled by binding arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction. 2. A normal outside work site free of overhead obstructions with reasonably clear access around tanks for crane and equipment is required. Site must be drained and adequately maintained by purchaser. Should conditions at site dictate other than a normal site with reasonably clear access, our price will be adjusted accordingly. Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 6 60956_RO_ProposalDrvieUnitsAndlnstallation_2017Jan03_MO78 4 WESYECM 3. All necessary materials for the installation that are to be furnished by others, but installed by WesTech shall be unloaded within fifty (50) feet of the applicable area of installation. Any materials received during our erection schedule and installed by WesTech will be unloaded by WesTech. 4. All electrical power for small tools and welding machines (460 v, 3 ph, 200 amps and 110v, 1 ph, 100 amps) along with connection and disconnection to be furnished by others at no cost to WesTech. 5. Work points, center lines, elevations, etc. to be provided by others prior to start of work. 6. WesTech does not take responsibility for damage to concrete floors, roadways, paved surfaces, or landscaping which may occur during normal erection work. 7. WesTech shall not be liable for incidental or consequential damages for any reason whatsoever. 8. No welding is permitted below the minimum metal preheat temperature per API code. WesTech has not included for preheating of the base metal for cold weather conditions nor associated weather delays. 9. WesTech standard inspections apply. Third party inspection and weld maps are not included unless specifically stated in this document. Taxes, Codes, and Permits: Although it is our intent to comply with all state and local laws, ordinances, codes, and regulations, due to the large marketing area we service, it is not feasible for us to attempt to research all these requirements. We are not aware of any special state or local codes that would require changes in this proposal design, however, the associated costs would be for the purchaser's account. 2. Federal, state, and local permits to be by others at no cost to WesTech. 3. Unless otherwise stated in this proposal, all sales and/or use taxes are excluded from this proposal. Responsibilities of the Purchaser: The following items are listed to clearly define the responsibilities of the Purchaser/General Contractor (P/GC) and are not the responsibilities of WesTech Engineering, Inc. Special construction procedures or devices may be required to protect WesTech's employees from the work of others or to protect employees of others from the work of WesTech, in order to comply with applicable safety and health laws. The cost of providing such special construction procedures or devices will be borne by the P/GC. 2. Provide a clear, well -drained, and open space adjacent to the proposed tank location adequate for receiving and storing materials and construction equipment. If dewatering Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 1660956_RO_ProposalDrvieUnitsAndlnstallation_2017Jan03_MO78 5 WESVEC" and/or stabilizing materials are required, they are the sole responsibility of the P/GC. 3. Provide and maintain an unobstructed roadway to, and access around the construction site and foundation of the tank, suitable for heavy trucks and construction equipment. If dewatering and/or stabilizing materials are required, they are the sole responsibility of the P/GC. 4. Provide access to facilities for emergency medical assistance in the event of a job accident. 5. Provide all lubricants. 6. Before construction is started and without cost to WesTech, the P/GC shall remove or make safe any conditions at the construction site which present a safety hazard to workmen or equipment including, but not limited to electric or telephone wires, pipe lines, flames, smoke, flammable gases, fumes, steam, poison, noxious chemicals, and hazards from other contractors working above or below the construction work. The P/GC shall have the sole responsibility for replacement and protection of all underground piping and facilities. 7. The PURCHASER shall be responsible for responsibilities outlined for the controlling entity within OSHA 29 CFR 1926.1400 (Cranes And Derricks). WesTech acknowledges the revised OSHA Crane and Derrick Standards but does not consider itself the controlling entity as defined in Section 1926.1401. 8. PURCHASER is to provide a dedicated spotter that is in contact with our crane operator if there are power lines within our crane's operating radius per OSHA 29 CFR 1926.1408. WesTech can provide the dedicated spotter at an additional cost if the owner does not provide one. As a safety precaution, WesTech's construction forces do not operate hoisting equipment or install rigging within 15 feet of live electric power lines of 220 volts or greater. 9. All the terms and conditions of this proposal become an integral part of a resultant order. This proposal has been reviewed for accuracy and is approved for issue: By: David F. Mortensen Date: 3 January 2017 Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 1660956_RO_ProposalDrvieUnitsAndlnstallation_2017Jan03_MO78 6 WESYECM PRICING ITEM EQUIPMENT/SERVICE "A" Two (2) Retrofit WesTech 42 -inch Cage Drive Units "B" Turnkey Installation of Two (2) 42 -inch Cage Drive Units PRICE $ 77,885.00 $ 64,339.00 Time of Acceptance: This offer to sell is subject to receipt of your purchase order within 90 days of the date on this proposal. Please be sure to reference this quotation number and date on your purchase order and all appurtenant documents. Please make order to: WesTech Engineering, Inc. 3665 South West Temple Salt Lake City, Utah 84115 Attention: Aftermarket Services Email your purchase order to parts@westech-inc.com. We appreciate the opportunity to offer our equipment. Upon award of an order, we assure you of our continued interest and service. At WesTech we realize that only the best possible equipment will be accepted, and we trust we will exceed your expectations. This proposal, including all terms and conditions contained herein, shall become part of any resulting contract or purchase order. Changes to any terms and conditions, including but not limited to submittal and shipment days, payment terms, and escalation clause shall be negotiated at order placement, otherwise the proposal terms and conditions contained herein shall apply. The above mentioned equipment was designed, and the services are offered, according to the information which we received. The dimensions may vary slightly depending upon the plant's actual design parameters. Assumed values may have been used, therefore, all information shall be verified by the engineer. Terms: Terms for equipment are net 30 days from shipment. Retentions are not allowed. Sales Tax: No sales taxes, use taxes, or duties have been included in our pricing. Freight: Prices quoted are F.O.B. shipping point with freight allowed to a readily accessible location nearest to jobsite. All claims for damage or loss in shipment shall be initiated by purchaser. Field Service: Prices do not include field service unless noted in equipment description. Additional field service is available at $3,980 for the first day and $1,235.00 for each additional day in the same trip (fees include travel expenses). Paint: Any and all field surface preparation, field paint, touch-up and repair to shop painted surfaces are not by WesTech. Project: Bremerton Primary Treatment Plant Date: 3 January 2017 Proposal Number: 1660956-126272 1660956_RO_ProposalDrvieUnitsAndlnstallation_2017JanO3_M078 7 Terms and Conditions appearing in any order based on this proposal which are inconsistent herewith shall not be binding on WesTech Engineering Inc. The sale and purchase of equipment described herein shall be governed exclusively by the foregoing proposal and the following provisions: 1. SPECIFICATIONS: WesTech Engineering Inc. is furnishing its standard equipment as outlined in the proposal and as will be covered by final approved drawings. The equipment may not be in strict compliance with the Engineer's/Owner's plans, specifications, or addenda as there may be deviations. The equipment will, however, meet the general intention of the mechanical specifications of these documents. 2. ITEMS INCLUDED: This proposal includes only the equipment specified herein and does not include erection, installation, accessories, nor associated materials such as controls, piping, etc., unless specifically listed. 3. PARTIES TO CONTRACT: WesTech Engineering Inc. is not a party to or bound by the terms of any contract between WesTech Engineering Inc.'s customer and any other party. WesTech Engineering Inc.'s undertakings are limited to those defined in the contract between WesTech Engineering Inc. and its direct customers. 4. PRICE AND DELIVERY: All selling prices quoted are subject to change without notice after 30 days from the date of this proposal unless specified otherwise. Unless otherwise stated, all prices are F.O.B. WesTech Engineering Inc. or its supplier's shipping points. All claims for damage, delay or shortage arising from such equipment shall be made by Purchaser directly against the carrier. When shipments are quoted F.O.B. job site or other designation, Purchaser shall inspect the equipment shipped, notifying WesTech Engineering Inc. of any damage or shortage within forty- eight hours of receipt, and failure to so notify WesTech Engineering Inc. shall constitute acceptance by Purchaser, relieving WesTech Engineering Inc. of any liability for shipping damages or shortages. S. PAYMENTS: All invoices are net 30 days. Delinquencies are subject to a 1.5 percent service charge per month or the maximum permitted by law, whichever is less on all past due accounts. Pro rata payments are due as shipments are made. If shipments are delayed by the Purchaser, invoices shall be sent on the date when WesTech Engineering Inc. is prepared to make shipment and payment shall become due under standard invoicing terms. If the work to be performed hereunder is delayed by the Purchaser, payments shall be based on the purchase price and percentage of completion. Products held for the Purchaser shall be at the risk and expense of the Purchaser. Unless specifically stated otherwise, prices quoted are for equipment only. These terms are independent of and not contingent upon the time and manner in which the Purchaser receives payment from the owner. 6. PAYMENT TERMS: Credit is subject to acceptance by WesTech Engineering Inc.'s Credit Department. If the financial condition of the Purchaser at anytime is such as to give WesTech Engineering Inc., in its judgment, doubt concerning the Purchaser's ability to pay, WesTech Engineering Inc. may require full or partial payment in advance or may suspend any further deliveries or continuance of the work to be performed by the WesTech Engineering Inc. until such payment has been received. 7. ESCALATION: If shipment is, for any reason, deferred by the Purchaser beyond the normal shipment date, or if material price increases are greater than 5% from proposal date to material procurement date, stated prices set forth herein are subject to escalation. The escalation shall be based upon increases in labor and material and other costs to WesTech Engineering Inc. that occur in the time period between quotation and shipment by WesTech Engineering Inc. Purchaser agrees to this potential escalation regardless of contradicting terms in the contract, except when an agreed upon escalation adder is included in the price. (a) The total quoted revised price is based upon changes in the indices published by the United States Department of Labor, Bureau of Labor Statistics. Labor will be related to the Average Hourly Earnings indices found in the Employment and Earnings publication. Material will be related to the Metal and Metal Products Indices published in Wholesale Prices and Prices Indices. (b) Price revision for items furnished to, and not manufactured by WesTech Engineering Inc., which exceed the above escalation calculation, will be passed along by WesTech Engineering Inc. to Purchaser based upon the actual increase in price to WesTech Engineering Inc. for the period from the date of quotation to the date of shipment by WesTech Engineering Inc. Any item that is so revised will be excluded from the index escalation calculations set forth in subparagraph (a) above. 8. APPROVAL: If approval of equipment submittals by Purchaser or others is required, a condition precedent to WesTech Engineering Inc. supplying any equipment shall be such complete approval. 9. INSTALLATION SUPERVISION: Prices quoted for equipment do not include installation supervision. WesTech Engineering Inc. recommends and will, upon request, make available, at WesTech Engineering Inc.'s then current rate, an experienced installation supervisor to act as the Purchaser's employee and agent to supervise installation of the equipment. Purchaser shall at its sole expense furnish all necessary labor equipment, and materials needed for installation. Responsibility for proper operation of equipment, if not installed by WesTech Engineering Inc. or installed in accordance with WesTech Engineering Inc.'s instructions, and inspected and accepted in writing by WesTech Engineering Inc., rests entirely with Purchaser; and any work performed by WesTech Engineering Inc. personnel in making adjustment or changes must be paid for at WesTech Engineering Inc.'s then current per diem rates plus living and traveling expenses. WesTech Engineering Inc. will supply the safety devices described in this proposal or shown in WesTech Engineering Inc.'s drawings furnished as part of this order but excepting these, WesTech Engineering Inc. shall not be required to supply or install any safety devices whether required by law or otherwise. The Purchaser hereby agrees to indemnify and hold harmless WesTech Engineering Inc. from any claims or losses arising due to alleged or actual insufficiency or inadequacy of the safety devices offered or supplied hereunder, whether specified by WesTech Engineering Inc. or Purchaser, and from any damage resulting from the use of the equipment supplied hereunder. 10. ACCEPTANCE OF PRODUCTS: Products will be deemed accepted without any claim by Purchaser unless written notice of non-acceptance is received by WesTech Engineering Inc. within 30 days of delivery if shipped F.O.B. point of shipment, or 48 hours of delivery if shipped F.O.B. point of destination. Such written notice shall not be considered received by WesTech Engineering Inc. unless it is accompanied by all freight bills for said shipment, with Purchaser's notations as to damages, shortages and conditions of equipment, containers, and seals. Non -accepted products are subject to the return policy stated below. 11. TAXES: Any federal, state, or local sales, use or other taxes applicable to this transaction, unless specifically included in the price, shall be for Purchaser's account. 12. TITLE: The equipment specified herein, and any replacements or substitutes therefore shall, regardless of the manner in which affixed to or used in connection with realty, remain the sole and personal property of WesTech Engineering Inc. until the full purchase price has been paid. Purchaser agrees to do all things necessary to protect and maintain WesTech Engineering Inc.'s title and interest in and to such equipment; and upon Purchaser's default, WesTech Engineering Inc. may retain as liquidated damages any and all partial payments made and shall be free to enter the premises where such equipment is located and remove the same as its property without prejudice to any further claims on account of damages or loss which WesTech Engineering Inc. may suffer from any cause. 13. INSURANCE: From date of shipment until the invoice is paid in full, Purchaser agrees to provide and maintain at its expense, but for WesTech Engineering Inc.'s benefit, adequate insurance including, but not limited to, builders risk insurance on the equipment against any loss of any nature whatsoever. 14. SHIPMENTS: Any shipment of delivery dates recited represent WesTech Engineering Inc.'s best estimate but no liability, direct or indirect, is assumed by WesTech Engineering Inc. for failure to ship or deliver on such dates. WesTech Engineering Inc. shall have the right to make partial shipments; and invoices covering the same shall be due and payable by Purchaser in accordance with the payment terms thereof. If Purchaser defaults in any payment when due hereunder, WesTech Engineering Inc. may, without incurring any liability therefore to Purchaser or Purchaser's customers, declare all payments immediately due and payable with maximum legal interest thereon from due date of said payment, and at its option, stop all further work and shipments until all past due payments have been made, and/or require that any further deliveries be paid for prior to shipment. If Purchaser requests postponements of shipments, the purchase price shall be due and payable upon notice from WesTech Engineering Inc. that the equipment is ready for shipment; and thereafter any storage or other charge WesTech Engineering Inc. incurs on account of the equipment shall be for the Purchaser's account. QF -00-038H Page 8 of 9 REV 02/06/12 WesTech Engineering, Inc. 3665 S. West Temple, Salt Lake City, Utah 84115 USA (T) 801.265.1000 (F) 801.265.1080 www.westech-inc.com If delivery is specified at a point other than WesTech Engineering Inc. or its supplier's shipping points, and delivery is postponed or prevented by strike, accident, embargo, or other cause beyond WesTech Engineering Inc.'s reasonable control and occurring at a location other than WesTech Engineering Inc. or its supplier's shipping points, WesTech Engineering Inc. assumes no liability in delivery delay. If Purchaser refuses such delivery, WesTech Engineering Inc. may store the equipment at Purchaser's expense. For all purposes of this agreement such tender of delivery or storage shall constitute delivery. 15. WARRANTY: WESTECH ENGINEERING INC. WARRANTS EQUIPMENT IT SUPPLIES ONLY IN ACCORDANCE WITH THE WARRANTY EXPRESSED IN THE ATTACHED COPY OF "WESTECH WARRANTY" AGAINST DEFECTS IN WORKMANSHIP AND MATERIALS WHICH IS MADE A PART HEREOF. SUCH WARRANTY IN LIEU OF ALL OTHER WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE, WHETHER WRITTEN, ORAL, EXPRESSED, IMPLIED OR STATUTORY, WESTECH ENGINEERING INC. SHALL NOT BE LIABLE ANY CONTINGENT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES FOR ANY REASON WHATSOEVER. 16. PATENTS: WesTech Engineering Inc. agrees that it will, at its own expense, defend all suits or proceedings instituted against Purchaser and pay any award of damages assessed against it in such suits or proceedings, so far as the same are based on any claim that the said equipment or any part thereof constitutes an infringement of any apparatus patent of the United States issued at the date of this Agreement, provided WesTech Engineering Inc. is given prompt notice in writing of the institution or threatened institution of any suit or proceeding and is given full control of the defense, settlement, or compromise of any such action; and Purchaser agrees to give WesTech Engineering Inc. needed information, assistance, and authority to enable WesTech Engineering Inc. so to do. In the event said equipment is held or conceded to infringe such a patent, WesTech Engineering Inc. shall have the right at its sole option and expense to a) modify the equipment to be non -infringing, b) obtain for Purchaser the license to continue using said equipment, or c) accept return of the equipment and refund to the Purchaser the purchase price thereof less a reasonable charge for the use thereof. WesTech Engineering Inc. will reimburse Purchaser for actual out-of-pocket expenses, exclusive of legal fees, incurred in preparing such information and rendering such assistance at WesTech Engineering Inc.'s request. The foregoing states the entire liability of WesTech Engineering Inc., with respect to patent infringement; and except as otherwise agreed to in writing, WesTech Engineering Inc. assumes no responsibility for process patent infringement. 17. SURFACE PREPARATION AND PAINTING: If furnished, shop primer paint is intended to serve only as minimal protective finish. WesTech Engineering Inc. will not be responsible for the condition of primed or finish painted surfaces after equipment leaves its shops. Purchasers are invited to inspect paint in shops for proper preparation and application prior to shipment. WesTech Engineering Inc. assumes no responsibility for field surface preparation or touch-up of shipping damage to paint. Painting of fasteners and other touch-up to painted surfaces will be by Purchaser's painting contractor after mechanism installation. Motors, gear motors, and other components not manufactured by WesTech Engineering Inc. will be painted with that manufacturer's standard paint system. It is WesTech Engineering Inc.'s intention to ship major steel components as soon as fabricated, often before drive, motors, and other manufactured components. Unless Purchaser can ensure that shop primed steel shall be field painted within thirty (30) days after arrival at the job site, WesTech Engineering Inc. encourages the Purchaser to order these components without primer. WesTech Engineering Inc.'s prices are based on paints and surface preparations as outlined in the main body of this proposal. In the event that an alternate paint system is selected, WesTech Engineering Inc. requests that Purchaser's order advise of the paint selection. WesTech Engineering Inc. will then either adjust the price as may be necessary to comply or ship the material unpainted if compliance is not possible due to application problems or environmental controls. 18. CANCELLATION, SUSPENSION, OR DELAY: After acceptance by WesTech Engineering Inc., this proposal, or Purchaser's order based on this proposal, shall be a firm agreement and is not subject to cancellation, suspension, or delay except upon payment by Purchaser of appropriate charges which shall include all costs incurred by WesTech Engineering Inc. to date of cancellation, suspension, or delay plus a reasonable profit. Additionally, all charges related to storage and/or resumption of work, at WesTech Engineering Inc.'s plant or elsewhere, shall be for Purchaser's sole account; and all risks incidental to storage shall be assumed by Purchaser. 19. RETURN OF PRODUCTS: No products may be returned to WesTech Engineering Inc. without WesTech Engineering Inc.'s prior written permission. Said permission may be withheld by WesTech Engineering Inc. at its sole discretion. 20. BACKCHARGES: WesTech Engineering Inc. will not approve or accept backcharges for labor, materials, or other costs incurred by Purchaser or others in modification, adjustment, service, or repair of WesTech Engineering Inc. -furnished materials unless such back charge has been authorized in advance in writing by a WesTech Engineering Inc. employee, by a WesTech Engineering Inc. purchase order, or work requisition signed by WesTech Engineering Inc. 21. INDEMNIFICATION: Purchaser agrees to indemnify WesTech Engineering Inc. from all costs incurred, including but not limited to court costs and reasonable attorney fees, from enforcing any provisions of this contract, including but not limited to breach of contract or costs incurred in collecting monies owed on this contract. 22. ENTIRE AGREEMENT: This proposal expresses the entire agreement between the parties hereto superseding any prior understandings, and is not subject to modification except by a writing signed by an authorized officer of each party. 23. MOTORS AND MOTOR DRIVES: In order to avoid shipment delays of WesTech Engineering Inc. equipment, the motor drives may be sent directly to the job site for installation by the equipment installer. Minor fit -up may be required. 24. EXTENDED STORAGE: Extended storage instructions will be part of information provided to shipment. If equipment installation and start-up is delayed more than 30 days, the provisions of the storage instructions must be followed to keep WARRANTY in force. 25. LIABILITY: Professional liability insurance, including but not limited to, errors and omissions insurance, is not included. In any event, liability for errors and omissions shall be limited to the lesser of $100,000USD or the value of the particular piece of equipment (not the value of the entire order) supplied by WesTech Engineering Inc. against which a claim is sought. 26. ARBITRATION NEGOTIATION: Any controversy or claim arising out of or relating to the performance of any contract resulting from this proposal or contract issued, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be entered to any court having jurisdiction. ACCEPTED BY PURCHASER Customer Name: Customer Address: Contact Name: Contact Phone: Contact Email: Signature: Printed Name: Title: Date: QF -00-038H Page 9 of 9 REV 02/06/12 WesTech Engineering, Inc. 3665 S. West Temple, Salt Lake City, Utah 84115 USA (T) 801.265.1000 (F) 801.265.1080 www.westech-inc.com 6810 South 300 West, Suite 8 Midvale, UT 84047 www.rebuild-it.com - Re6uilat Yt PROPOSAL NO. Q121288 Revised: January 3, 2017 PREPARED FOR: Bremerton Wastewater Treatment Plant 1600 Oyster Bay Ave Bremerton, WA 98312 SCOPE OF WORK: Provide options for either the rebuild of the existing EIMCO C40HT drive units' serial number 23046-03A & 03B or replacement of the drive units, with either a refurbished C40HT or a RockWater Equipment CM40 drive unit. Also broken out in the proposal is the labor for removal of the existing drive unit and reinstallation and leveling of either the rebuilt or new drive unit. PROPOSAL PREPARED BY: LOCAL REPRESENTATIVE Rebuild -It Services Group, LLC Beaver Equipment Specialty Company 6810 South 300 West, Suite 8 1300 John Adams Street, Suite 108 Midvale, Utah 84047 Oregon City, OR 97045 Tom Strottner Mike McKamey, P.E. Office: (385) 235-6925 Office: (425) 398-8082 Mobile: (801) 599-4571 Mobile: (206) 678-3775 tstrottner@rebuild-it.com mikem@beaver-equipment.com P R O P O S A L 1 Proposal No. Q121288 PROJECT SUMMARY: Rebuild -it Services Group, LLC (RSG) presents our proposal for options of either the rebuild of an existing EIMCO C40HT drive units installed on 110'-0" diameter EIMCO OS secondary clarifiers sold under EIMCO order 23046-03; or replacement of the existing drive units along with removal and installation labor. The proposal is broken into four sections, existing drive rebuild, new RockWater CM40 drive unit, a refurbished EIMCO C40HT drive unit and finally labor for the removal and reinstallation services. SCOPE OF WORK: Existing drive unit rebuild: Shipment of drive unit to RSG rebuild facility for cleaning, disassembly and inspection. An inspection report of the drive unit will be completed and furnished to Bremerton Wastewater plant for their records. The drive unit will be nameplated with the year that it was rebuilt and include the original manufacturer and order/serial number for traceability for future replacement needs. All Rebuild -It rebuilt drives comes with a standard two (2) year warranty. Standard rebuild includes: • Disassembly, cleaning and inspection of drive unit. • Issuance of inspection report indicating the condition of part and provide final recommendation of drive rebuild. • Replacement of all bearings and seals. • New motor drive package; consists of gear motor, sprockets, chain, stainless steel chain guard and required gear motor mounts. Motor drive package will be sized to match existing drive unit output torque and RPM. • Replacement of torque overload device • Replacement of all keys and fasteners • Replace all oil piping and sight glasses • Clean and polish all re -useable parts as required. • Repair pinion and worm shaft surfaces at seal areas as required. • Blast clean and paint exterior surfaces of drive and worm gear housings. • Power clean and seal interior of drive and worm gear housings. • Blast clean and paint main gear cover. • Complete reassembly and testing. • New 0&M for drive unit. • All new oil piping and fasteners will be stainless steel • Shipping to and from plant P R O P O S A L 2 Proposal No. Q121288 bu &i ". cre.p Items excluded in a standard rebuild: • Major components that are typically re -used as part of the rebuild scope. o Pinions o Gears and Worm Gears o Housings o Pinion / worm shafts o Covers will be re -used as part of a standard rebuild. At the submission of the inspection report if major damage or replacement is noted for any of the items listed about; will constitute a hold point on the project unit RSG and Bremerton Wastewater plant have agreed to a path forward. • Lubricates (oil to be provided by customer) Note: Pricing is based on a typical (standard) rebuild and does not include the replacement of major components, i.e. gears, precision bearing, pinion, housings and covers. If any of these items are deemed to be replaced, there will be additional charges for these item(s). Plant must drain the drive unit of all oil prior to our arrival and removal of the drive. Refurbished EIMCO C40 drive - Council Bluffs. IA RockWater CM40 Drive Unit P R O P O S A L 3 Proposal No. Q121288 - -=Rebuiilat-Yt,. Supply of a RockWater CM40 drive unit which is licensed by Rebuild -it Services Group. The CM40 is a direct bolt in replacement to the existing EIMCO C40HT drive. The CM40 has been uniquely designed with Rebuild -it to allow for the best of the old and new; the CM40 drive unit utilizes a EIMCO designed base and gear assembly from FLSmidth, a single input reducer with integral loadcell providing torque overload protection. The CM40 drive unit is supplied with a local NEMA 4X control panel containing a VFD for speed control and the torque display unit, which allows for a digital feedback to the plants SCDA system. All Rebuild-It/RockWater drives comes with a standard two (2) year warranty. We include the following: • RockWater CM40 drive unit, rated up to 75,000 ft -lb torque. o Cast Iron base and gear o Planetary input gear assembly with loadcell o Control panel with VFD and overload device display. o Condensate breather • Stainless steel oil piping • Stainless steel assembly fasteners on motor drive package • 0&M manual • Shipping to job site RockWater CM40 Drive Unit P R O P O S A L 4 Proposal No. Q121288 Refurbished EIMCO C40HT Drive Unit Supply of a rebuilt EIMCO C40HT drive unit that is a direct bolt in replacement of the existing EIMCO C40HT drive. All Rebuild -It rebuilt drives comes with a standard two (2l year warranty. Include the following: • A completely refurbished EIMCO C40HT drive unit and has been rebuilt to factory specifications and comes with our two-year warranty. o This unit contains a OEM supplied main gear and base o Fully refurbished worm drive assembly • Motor drive package; consists of gear motor, sprockets, chain, stainless steel chain guard and required gear motor mounts. Motor drive package will be sized to match existing drive unit output torque and RPM. • Torque overload device • Stainless steel oil piping • Stainless steel assembly fasteners • 0&M manual • Shipping to job site Drive unit coating system all drives options: Rebuild -it's unique coating system provides a durable coating on the drive unit that is superior than what is typically provided. All exterior drive unit surfaces: • Blast cleaned to SSPC-SP6 • Prime coat: Tnemec Hi -Build Epoxy to a dry film thickness of 4.0 to 6.0 mils. Color: Pencil Gray • Final coat: UV protected industrial grade polyurethane coating to a dry film thickness of 6.0 mil minimum. Color: Pencil Gray All interior surface except for machined surfaces and gear faces: • Power cleaned and then coated with a Tool Crib red insulating varnish. • All machined surface will be coated with LPS 3 Rust Inhibitor All reducers and motors will have the manufactures standard finish. Labor Services: P R O P O S A L 5 Proposal No. Q121288 Rebuild -it Service Group will provide the necessary equipment and labor to for the removal and reinstallation of the clarifier drive. RSG will coordinate our work schedule with plant operations, to ensure minimal interruptions. This may be accomplished in either one or two mobilizations depending on which drive option is selected. We'll also coordinate with the plant for the location of our job trailer, laydown, storage area, crane access, etc. The scope of work for this project is as follows: • Site mobilization and travel time to the job site. • Removal and reinstallation of drive head. • Removal of existing clarifier bridge. • Loading and Offloading of refurbished drive unit. • Crane, mats, rigging equipment as needed. • Rake and drive leveling. • Provide assistance during start-up and testing. • Provide all required confined space entry equipment, hosting and rigging. • Work to be perform in one or two mobilizations. • Demobilization of personnel and equipment. • Rebuild -it service engineer This proposal excludes the following items: • Permits, fees, and/or stamped engineering documents. • Prevailing wage rates • Overtime premiums or weekend work • Removal of electrical conduit, panels, etc. on clarifier walkway or platform. • Temporary facilities including porta-johns, hand was, temp power, water, and disposal bins to be provided by others. • Installation of electrical and/or instrumentation to be by others, except as noted in this proposal. • Concrete demolition and/or repair, if required, can be provided at additional cost. • Grouting of the tank or concrete work. • Assumes reasonable access to basins. • Hazardous material abatement, handling and/or disposal. • Any work not specifically included. • Draining and cleaning of tank. • Lubrication for drive unit. P R O P O S A L Proposal No. Q121288 Y -nevuna-Yi;-,., y Schedule: The schedule times given are from receipt and acceptance date of purchase order by Rebuild -it Services Group, LLC. Rebuild drive unit: • 1-2 days to remove the drive • 4-6 weeks per drive unit for rebuild (tear down, inspection, cleaning, reassembly, installation of motor drive package, drive control, final paint) • 1-2 days to re -install the drive Estimate lead times on the drive for rebuilding the existing unit is based on a standard rebuild and that all reusable components are in good condition. New drive unit: • 12-14 weeks for delivery (final assembly & paint) • 2-3 days for removal and reinstallation of drive Refurbished drive unit: • 4-6 weeks for delivery (installation of motor drive package, drive control & final paint) Long lead time is gearmotor typically 3-4 weeks. • 2-3 days for removal and reinstallation of drive Pricing: Rebuild existing EIMCO C40HT Drive................................................................. $22,240.00 each Total for two rebuild EIMCO C40HT drives ...................................................... $44,480.00 RockWater CM40 drive unit............................................................................... $42,418.00 each Total for two CM40 drive units.......................................................................... $84,836.00 Rebuilt EIMCO C40HT drive unit....................................................................... $36,125.00 each Total for two rebuilt EIMCO C40HT drives ....................................................... $72,250.00 Labor for removal and reinstallation of new drive unit ............................ $28,400.00 per tank Total for two tanks....................................................................................... $56,800.00 Labor for removal and reinstallation for rebuild of existing drive .......... $31,160.00 per tank Total for two tanks....................................................................................... $62,320.00 Clarifications (included in pricing above): • Rebuild -it Services Group (RSG) will provide a 2 -year warranty on the drive parts and workmanship. • RSG includes stainless steel fasteners, oil piping and chain guard supports brackets with all rebuilds. • RSG will supply all OEM EIMCO replacement parts for the EIMCO drive unit. P R O P O S A L 7 4 _ Proposal No. Q121288 Please be sure to reference this quotation number and date on your purchase order. Remit order to: Rebuild -it Services Group, LLC. 6810 South 300 West, Suite 8 Midvale, Utah 84047 Attention: Candace King, cking@rebuild-it.com PRICING AND PAYMENT TERMS: We appreciate the opportunity to offer our parts & services. Upon receipt of an order, we assure you of our continued interest and service. RSG will provide the best service possible to ensure we exceed your expectations. This proposal, including all terms and conditions contained herein, shall become part of any resulting contract or purchase order. Changes to any terms and conditions, including but not limited to submittal and shipment days, payment terms, and escalation clause shall be negotiated at order placement, otherwise the proposal terms and conditions contained herein shall apply. Terms: If not outline otherwise in the proposal, terms for the parts and/or equipment are 100% due after shipment or service is completed. Net 30 days from shipment or after service is completed. The prices are good for 60 days. Sales Tax: No sales taxes, use taxes, or duties have been included in our pricing. Unless you live in Utah, we are not registered to collect sales tax in your state. If you are not tax exempt, please remit taxes directly to the governing authorities. Freight: Prices quoted are F.O.B. shipping point with freight prepaid and added to a readily accessible location nearest to jobsite, unless otherwise indicated. All claims for damage or loss in shipment shall be initiated by purchaser. Shipment: Estimated shipment time is (see above) after purchase order is received in our office. Field Service: Prices do not include field service unless noted in the rebuild scope of work description. Additional field service is available at $900.00 per day plus expenses. OEM Parts: As applicable RSG will supply OEM factory parts furnished by FLSmidth USA, Inc. FLSmidth owns EIMCO® and Dorr-Oliver'" registered trademarks. P R O P O S A L E Proposal No. Q121288 Y WARRANTY & TERMS AND CONDITIONS: -nevunaa -Yi;_,,, y Parts and/or Equipment manufactured or rebuilt and sold by Rebuild -it Services Group, once paid for in full, is backed by the following warranty: For the benefit of the original user, RSG warrants all new parts and equipment sold or rebuilt RSG, LLC. to be free from defects in material and workmanship, and will replace or repair, F.O.B. its factories or other location designated by it, any part or parts returned to it which RSG's examination shall show to have failed under normal use and service by the original user within two (2) years following initial start-up, or two (2) years and six (6) months from shipment to the purchaser, whichever occurs first. Such repair or replacement shall be free of charge for all items except for those items such as resin, filter media and the like that are consumable and normally replaced during maintenance, with respect to which, repair or replacement shall be subject to a pro -rata charge based upon RSG's estimate of the percentage of normal service life realized from the part. RSG's obligation under this warranty is conditioned upon its receiving prompt notice of claimed defects, which shall in no event be later than thirty (30) days following expiration of the warranty period, and is limited to repair or replacement as aforesaid. This warranty is expressly made by RSG and accepted by purchaser in lieu of all other warranties, including warranties of merchantability and fitness for particular purpose, whether written, oral, express, implied, or statutory. RSG shall not be liable for normal wear and tear, corrosion, or any contingent, incidental, or consequential damage or expense due to partial or complete inoperability of its equipment for any reason whatsoever. This warranty shall not apply to equipment or parts thereof which have been altered or repaired outside of a RSG factory, or damaged by improper installation, application, or maintenance, or subjected to misuse, abuse, neglect, accident, or incomplete adherence to all manufacturer's requirements, including, but not limited to, Operations & Maintenance Manual guidelines & procedures. This warranty applies only to equipment made or sold by Rebuild -it Services Group, LLC (RSG). RSG makes no warranty with respect to parts, accessories, or components purchased by the customer from others. The warranties which apply to such items are those offered by their respective manufacturers. CONFIDENTIALITY: All the information in this quotation is confidential and has been prepared for your use solely in considering services described. Transmission of all or any parts of this information to others or use by you for other purposes is unauthorized without our written consent. P R O P O S A L _ � 4 Nj Proposal No. Q121288 Y - TERMS AND CONDITIONS: -nevunar<-Yi;� .y Terms and Conditions appearing in any order based on this proposal which are inconsistent herewith shall not be binding on Rebuild -it Services Group (RSG). The sale and purchase of equipment described herein shall be governed exclusively by the foregoing proposal and the following provisions: 1. SPECIFICATIONS: RSG is furnishing its standard equipment as outlined in the proposal and as will be covered by final approved drawings if applicable. The equipment will, however, meet the general intention of the mechanical specifications of these documents. 2. ITEMS INCLUDED: This proposal includes only the equipment specified herein and does not include erection, installation, accessories, nor associated materials such as controls, piping, etc., unless specifically listed. 3. PRICE AND DELIVERY: All selling prices quoted are subject to change without notice after 30 days from the date of this proposal unless specified otherwise. Unless otherwise stated, all prices are F.O.B. RSG or its supplier's shipping points. All claims for damage, delay or shortage arising from such equipment shall be made by Purchaser directly against the carrier. When shipments are quoted F.O.B. job site or other designation, Purchaser shall inspect the equipment shipped, notifying RSG of any damage or shortage within forty-eight hours of receipt, and failure to so notify RSG shall constitute acceptance by Purchaser, relieving RSG of any liability for shipping damages or shortages. 4. PAYMENTS: All invoices are net 30 days. Delinquencies are subject to a 1.5 percent service charge per month or the maximum permitted by law, whichever is less on all past due accounts. Pro rata payments are due as shipments are made. If shipments are delayed by the Purchaser, invoices shall be sent on the date when RSG is prepared to make shipment and payment shall become due under standard invoicing terms. If the work to be performed hereunder is delayed by the Purchaser, payments shall be based on the purchase price and percentage of completion. Products held for the Purchaser shall be at the risk and expense of the Purchaser. Unless specifically stated otherwise, prices quoted are for equipment only. These terms are independent of and not contingent upon the time and manner in which the Purchaser receives payment from the owner. 5. INSTALLATION SUPERVISION: Prices quoted for equipment do not include installation supervision, unless otherwise noted. RSG recommends and will, upon request, make available, RSG's then current rate, an experienced installation supervisor to act as the Purchaser's employee and agent to supervise installation of the equipment. Purchaser shall at its sole expense furnish all necessary labor equipment, and materials needed for installation. Responsibility for proper operation of equipment, if not installed by RSG or installed in accordance with RSG or original manufacture instructions, and inspected and accepted in writing by RSG or manufacture representing RSG. RSG will supply the safety devices described in this proposal or shown in RSG's or manufacture represented drawings furnished as part of this order but excepting these, RSG shall not be required to supply or install any safety devices whether required by law or otherwise. The Purchaser hereby agrees to indemnify and hold harmless RSG from any claims or losses arising due to alleged or actual insufficiency or inadequacy of the safety devices offered or supplied hereunder, whether specified by RSG or Purchaser, and from any damage resulting from the use of the equipment supplied hereunder. 6. ACCEPTANCE OF PRODUCTS: Products will be deemed accepted without any claim by Purchaser unless written notice of non- acceptance is received by RSG within 30 days of delivery if shipped F.O.B. point of shipment, or 48 hours of delivery if shipped F.O.B. point of destination. Such written notice shall not be considered received by RSG unless it is accompanied by all freight bills for said shipment, with Purchaser's notations as to damages, shortages and conditions of equipment, containers, and seals. Non -accepted products are subject to the return policy stated below. 7. TAXES: Any federal, state, or local sales, use or other taxes applicable to this transaction, unless specifically included in the price, shall be for Purchaser's account. B. INSURANCE: From date of shipment until the invoice is paid in full, Purchaser agrees to provide and maintain at its expense, but for RSG benefit, adequate insurance including, but not limited to, builders risk insurance on the equipment against any loss of any nature whatsoever. 9. SHIPMENTS: Any shipment of delivery dates recited represent RSG's best estimate but no liability, direct or indirect, is assumed by RSG for failure to ship or deliver on such dates. RSG shall have the right to make partial shipments; and invoices covering the same shall be due and payable by Purchaser in accordance with the payment terms thereof. If Purchaser defaults in any payment when due hereunder, RSG may, without incurring any liability therefore to Purchaser or Purchaser's customers, declare all payments immediately due and payable with maximum legal interest thereon from due date of said payment, and at its option, stop all further work and shipments until all past due payments have been made, and/or require that any further deliveries be paid for prior to shipment. P R O P O S A L 10 Proposal No. Q121288- -s` If Purchaser requests postponements of shipments, the purchase price shall be due and payable upon notice from RSG that the equipment is ready for shipment, and thereafter any storage or other charge RSG incurs on account of the equipment shall be for the Purchase's account. If delivery is specified at a point other than RSG or its supplier's shipping points, and delivery is postponed or prevented by strike, accident, embargo, or other cause beyond RSG reasonable control and occurring at a location other than RSG or its supplier's shipping points, RSG assumes no liability in delivery delay. If Purchaser refuses such delivery, RSG may store the equipment at Purchaser's expense. For all purposes of this agreement such tender of delivery or storage shall constitute delivery. 10. SURFACE PREPARATION AND PAINTING: If furnished, shop primer paint is intended to serve only as minimal protective finish. RSG will not be responsible for the condition of primed or finish painted surfaces after equipment leaves its shops. Purchasers are invited to inspect paint in shops for proper preparation and application prior to shipment. RSG assumes no responsibility for field surface preparation or touch-up of shipping damage to paint. Painting of fasteners and other touch-up to painted surfaces will be by Purchase's painting contractor after mechanism installation. 11. RETURN OF PRODUCTS: No products may be returned to RSG without RSG's prior written permission. Said permission may be withheld by RSG at its sole discretion. 12. BACK CHARGES: RSG will not approve or accept back charges for labor, materials, or other costs incurred by Purchaser or others in modification, adjustment, service, or repair of RSG furnished materials unless such back charge has been authorized in advance in writing by a RSG employee and a purchase order, or work requisition signed by RSG. 13. INDEMNIFICATION: Purchaser agrees to indemnify RSG from all costs incurred, including but not limited to court costs and reasonable attorney fees, from enforcing any provisions of this contract, including but not limited to breach of contract or costs incurred in collecting monies owed on this contract. 14. ENTIRE AGREEMENT: This proposal expresses the entire agreement between the parties hereto superseding any prior understandings, and is not subject to modification except by a writing signed by an authorized officer of each party. 15. EXTENDED STORAGE: Extended storage instructions will be part of information provided to shipment. If equipment installation and start-up is delayed more than 30 days, the provisions of the storage instructions must be followed to keep WARRANTY in force. 16. LIABILITY: Professional liability insurance, including but not limited to, errors and omissions insurance, is not included. In any event, liability for errors and omissions shall be limited to the lesser of 25,000USD or the value of the particular piece of equipment (not the value of the entire order) supplied by RSG against which a claim is sought. 17. ARBITRATION NEGOTIATION: Any controversy or claim arising out of or relating to the performance of any contract resulting from this proposal or contract issued, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be entered to any court having jurisdiction. ACCEPTED BY PURCHASER Customer Name: Contact Phone: Signature: Title: Customer Address: Contact Name: Contact Email: Printed Name: Date: P R O P O S A L 11 Public Works and Utilities Department 100 Oyster Bay Ave. N. . Bremerton, WA 98312 • (360) 473-5315 • FAX (360) 473-5360 MEMORANDUM DATE: February 8, 2017 TO: City Council FROM: Milenka Hawkins -Bates, Operations/Administrative Manager SUBJECT: Vehicle Purchase Summary — 2/8/17 Study Session Item 4. Purchase of 2017 TORO GM360 4WD Mower & Debris Blower Purchase Price with Tax $47,327.72 Budgeted Amount $50,000.00 Replacing: 2002 John Deere 4100 Mower Criteria Met: Age of equipment and hours of use Item 5. Purchase of 2017 Ford F-250 for Parks Department Purchase Price with Tax $28,989.64 Budgeted Amount $32,000.00 Replacing: 2000 GMC Sonoma Pick-up Criteria Met: High maintenance costs and age of vehicle Item 6. Purchase of 2017 Ford Escape 4wd for DCD Department Purchase Price with Tax $22,231.62 Budgeted Amount $32,000.00 Replacing: 2001 GMC Sonoma Pick-up Criteria Met: High maintenance costs and age of vehicle Item 7. Purchase of 2017 Ford F-350 4WD for Forestry Department Purchase Price with Tax $38,909.71 Budgeted Amount $40,000.00 Replacing: 2001 Ford F-250 4WD Criteria Met: Mileage, age and maintenance costs Working for and with our citizens to establish Bremerton as Puget Sound's most beautiful and livable waterfront city! f • ;P-1 age 2 February 8, 2017 Item 8. Purchase of two 2017 Chevrolet Silverado % ton PU for Water Purchase Price with Tax $71,077.50 Budgeted Amount $80,000.00 within Water 404 Fund Item 9. Purchase of five 2017 Ford Interceptors with Safety Equip Purchase Price with Tax $263,926.69 / 52,785.34 Budgeted Amount $62,000.00 Replacing: (4) 2009 Ford Crown Victoria Criteria Met: Mileage, age and maintenance costs Replacing: 2010 Ford Crown Victoria Criteria Met: Totaled AGENDA BILL �� CITY OF BREMERTON CITY COUNCIL SUBJECT: Purchase of one 2017 Toro Study Session Date: February 8, 2017 GM360 4WD Mower with Debris Blower from COUNCIL MEETING Date: February 13, 2017 Turf Star, Inc of Hayward, CA Department: PWU / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget shows a replacement in the Parks Department of a 2002 John Deere 4100 Mower. The requested replacement is a 2017 TORO GM360 4WD Mower with Debris Blower per NJPA Contract in the amount of $47,327.72 including Washington State sales tax of 9%. The authorized dealer is Turf Star, Inc. of Hayward, CA. ATTACHMENTS: 1) NIPA Contract Quote No. 2087961 FISCAL IMPACTS (Include Budgeted Amount): Budgeted within the 510 fund at $50,000 STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a 2017 TORO GM360 4WD Mower and Debris Blower per NJPA Contract in the amount of $47,327.72 including Washington State sales tax. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action ST Quote Turf Star, Inc. Prepared for: 2438 Radley Court Bremerton Parks Department Hayward CA 94545 Steve Mutek/Tom Cressman Prepared by: Shawn Frisbee shawn.frisbee@western-equip.com Note: The above pricing does not include sales tax. Proposal Date: 01/27/2017 Expiration Date: 02/06/2017 Quote ID: 2087961 $42,372.13 $42,372.13 TO'�A1:9 Equipment Total $42,372.13y Toro Protection Plus $1,047.80 Total $43.419.93 `170 3, { D4 , ?y GM360 4WD with NO Deck (Tier 4 Final 1 31200 Compliant) (31200 / 31200A) 1 30353 72 in Base Deck Fine Cut Guardian Recycler Completion Kit 1 30346 (Includes baffles and blades) Grammer Seat with Air Ride Suspension and 1 30511 vinyl Cushions 1 44547 Pro Force Blower for GM360 (4WD) 1 30509 QAS Front Frame 1 30052 MVP FILTER KIT-GM72000D (2008- ) Toro Protection Plus Comprehensive - 1 0480 48/2400 Note: The above pricing does not include sales tax. Proposal Date: 01/27/2017 Expiration Date: 02/06/2017 Quote ID: 2087961 $42,372.13 $42,372.13 TO'�A1:9 Equipment Total $42,372.13y Toro Protection Plus $1,047.80 Total $43.419.93 `170 3, { D4 , ?y o CN a' aD E c� aD U O 0 0 70 O N cB Z p ca U — N o LL — o _ o CD 1 0 o � U) C D _u • O Q i Z N O s NO C) •_ \ (.0 �� L W LUI a i dLO 00 O vi � � Q — m EOCL o m _ Co ti O a� E '1 p w N O m O � V O C F- 0 m % N a co m V N L = _� = o �, — LL 2 o N o N v T O = O N S L r � U W LU C v H .. 0:E s •• D ILL Cl) H >00 AGENDA BILL CITY OF BREMERTON B5 CITY COUNCIL SUBJECT: Purchase of one 2017 Ford F- Study Session Date: February 8, 2017 250 for the Parks Department from COUNCIL MEETING Date: February 13, 2017 Columbia Ford of Longview, WA Department: PWU / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget shows a replacement in Parks Department of a 2000 GMC Sonoma P/U. The requested replacement is a 2017 Ford F-250 P/U with all required options per state contract No. 05916 in the amount of $28,989.64 including Washington State sales tax. The authorized dealer is Columbia Ford, Longview WA. The replaced vehicle will be removed from the fleet. ATTACHMENTS: 1) Copy of Washington State Contract 05916,quote 2017-1-562; 2) Justification FISCAL IMPACTS (Include Budgeted Amount): Budgeted within the 510 fund at $32,000 STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a 2017 Ford F-250 P/U with all required options per state contract No. 05916 in the amount of $28,989.64 including Washington State sales tax. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action P r0'y_C' 0C)L,( t-5 Charles Ernst From: NOREPLY@des.wa.gov Sent: Tuesday, January 24, 2017 9:38 AM To: Charles Ernst Cc: Philip.Saunders@des.wa.gov Subject: Vehicle Quote **2017-1-562 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2017-1-562 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Columbia Ford (W403) 700 7th Avenue Longview WA 98632 Organization Information Organization: BREMERTON, CITY OF - 21801 Email: chades.emst@ci.bremerton.wa.us Vehicle Location: Longview Color Options Oxford White - 1 Tax Exempt: N Vehicle Options Dealer Contact: Marie Tellinghiusen Dealer Phone: (360) 423-4321 Ext: 187 Dealer Email: mallet@colford.com Order Code Option Description 2017-0820-0012017 Ford F250 Regular Cab, 2WD, 142WB, 8ft Box, 6.21- V8 Gas, TorgShift-G 6 -speed auto w/SelectShift, 9950# GVWR, 4200# Payload, 3.73 RAR (F2A/600A/996/44S/142WB) 2017-0820-016 Medium Duty Battery, Dual 78AH, 150OCCA Total (Included with diesel) (86M) 2017-0820-019 Power Equipment Group - Regular/Extended Cabs (includes power door locks and windows, manual - folding, manually -telescoping trailer tow mirrors with power heated glass, heated convex spotter mirror, integrated clearance lamps/tum signals, perimeter alarm, power tailgate lock, Remote Keyless Entry, upgraded door -trim panel) (deletes passenger -side door lock cylinder) (Includes four (4) RKE Fobs w/ Integrated Keys) (90L) Qty Unit Price Ext. Price 1 $22,220.00 $22,220.00 1 $201.00 $201.00 1 $1,173.00 $1,173.00 2017-0820-027 Platform Running Boards (Regular Cab)(18B) 1 $307.00 $307.00 2017-0820-030 Rearview Camera (Electrochromic mirror with video display) (If ordered with XL Value Package #96V, 1 $355.00 $355.00 display will be in center stack screen) (Not available with Pickup Box Delete #66D) (871) 2017-0820-037 Reverse Sensing System (Not available with Pickup Box Delete #66D) (76R) 1 $234.00 $234.00 2017-0820-038 Upfitter Switches (6) (located in overhead console) (Must also order Extra HD Alternator #67D) (66S) 1 $158.00 $158.00 2017-0820-045 Tough Bed Spray -In Bedliner (factory) (85S) 1 $474.00 $474.00 1 2017-0820-049 Splash Guards/Mud Flaps, Front and Rear (factory) (Not available with Pickup Box Delete #66D) (61S/62S) 1 $124.00 $124.00 2017-0820-050 Exterior backup alarm (factory) (76C) 1 $133.00 $133.00 2017-0820-055 SYNC - Voice Recognition Communications (hands-free cell phone) (Includes 911 Assist, 4.2" LCD screen 1 $350.00 $350.00 j in center stack, AppLink, and (1) smart -charging USB port) (Must also order AM/FM/Single CD #585 or f XL Value Package #96V) (91M) 2017-0820-058 110V/400W Outlet (with 40/20/40 seats, there is one in -dash mounted outiest; 2nd outlet in the console 1 $72.00 $72.00 4 requires 40/console/40 seats) (Must also order Extra HD Alternator #67D) (43C) 2017-0820-069 Trailer Brake Controller (52B) 1 $259.00 $259.00 2017-0820-208 Undercoating (DLR) 1 $155.00 $155.00 2017-0820-209 Service Manual, CD (DLR) 1 $221.00 $221.00 2017-0820-210 Service Wiring Diagram, Paper (DLR) 1 $87.00 $87.00 Quote Totals Washington State Tax 9% +.3% Excise Tax = 9.3% $26,523.00 $2,466.64 Tax $28,989.64 2 Total Vehicles: 1 Sub Total: $26,523.00 8.3 % Sales Tax: $2,201.41 Quote Total: $28,724.41 g8, 9 jo, 0+ Vehicle Standard Specifications And Additional Information Vehicle: 2017 Ford F250 (2WD), Regular Cab (Extended/Crew Cab Options) Contract #: 05916 - Motor Vehicles Dealer: Columbia Ford Vehicle Standard Specifications And Additional Information Page 1 of 2 Specification Description Specification 2017 Ford F250 Regular Cab, 2WD, 142" Wheelbase, 8 -foot box, XL Trim Level F2A/600A/142WB 9,950# GVWR/4,200# Payload STANDARD 6.21,2 -Valve Gas SOHC EFI NA V8 (Flex Fuel Capable) 996 Six -Speed Automatic Transmission w/ SelectShift 44S Brakes: Four-wheel power disc with anti -locking braking system (ABS) STANDARD Solar tinted glass (not privacy glass) STANDARD Pickup box and cargo area lamps STANDARD LT245/75Rxl7E BSW All -Season Tires TBK 17" argent painted steel wheels/painted hub covers 64A Full-size spare tire (underbody mounted), 2 -Ton mechanical jack STANDARD Individual Tire Pressure Monitoring System (TPMS) STANDARD Removable tailgate with key lock and tailgate assist STANDARD Pickup box tie -down hooks (4) STANDARD Front Tow Hooks (2) STANDARD Powerpoints: (2) in instrument panel STANDARD Door Trim: molded with armrest/grab handle and reflector STANDARD Headliner: color -coordinated cloth STANDARD Dome lamp, dual map lights STANDARD Interior Hood Release, underhood service light STANDARD Power Steering STANDARD Intermittent Windshield Wipers STANDARD AdvanceTrac with Roll Stability Control (RSC) STANDARD Airbags: driver and passenger frontal and side airbag curtain STANDARD Center high -mounted stop lamp (CHMSL) STANDARD Stationary Elevated Idle Control (SEIC) STANDARD HD Alternator, 157 Amps STANDARD Battery, 650CCA, 72 AH STANDARD httos:Hfortress.wa.aov/aa/anns/CARSNehicleSDecifications.asnx?id=603 1/24/2017 Vehicle Standard Specifications And Additional Information Page 2 of 2 HD gas shock absorbers, Front stabilizer bar STANDARD Trailer Tow Package: 7 -wire harness with relays and STANDARD 7/4 pin connector 2.5" trailer hitch receiver (includes 2" - 2.5" sleeve STANDARD reducer) 34 -gallon fuel tank STANDARD Black front/rear bumpers, grille and door handles STANDARD Quad beam halogen jewel effect headlamps, auto STANDARD on/off with rainlamp wiper activation Manually telescoping/folding trailer tow mirrors STANDARD with manual glass Manual single -zone air-conditioning STANDARD AM/FM stereo with (4) speakers STANDARD Outside temperature display STANDARD Black vinyl flooring STANDARD Manual door locks, windows and mirrors STANDARD Seats: Vinyl Front 40/20/40 split bench with center armrest, cupholder and storage (includes driver side STD/TTA manual lumbar) Height Adjustable Seatbelts (front outboard seating STANDARD positions only) Manual tilt/telescoping steering wheel/column STANDARD Dual color -coordinated sun visors, driver w/ pocket, STANDARD passenger w/uncovered mirror Trailer Sway Control and Hill Start Assist STANDARD SecuriLock Passive Anti -Theft System (PATS) STANDARD Keys/Locks: Manual lock cylinders on front doors, STD/DLR (4) PATS Keys Warranty: 3/36 Bumper to Bumper, 5/60 Powertrain STANDARD Order -to -Delivery, 90-120 days STANDARD Exterior Paint (No Charge)(M=Metallic): Oxford White, Ingot Silver M, Race Red, Blue Jeans M, STANDARD Magnetic M, Caribou M, Shadow Black Extra Cost VSO Paint (add 30 days): Vermillion Optional Red, School Bus Yellow, Green Gem httDs:Hfortress.wa.izov/aa/anns/CARSNehicleSDecifications.asnx?id=603 1/94/2017 0 v 0 Xm Q m v 0 N_ 00 (h Q (1) E T m z Q m O 0 0 1 Z CW nG li W W 0 O 2 w LL U) L ca CL i O LO N LL LL U LU o a � a� U (II N E L (D LM E O U � U o0) N J Q N •� O O O .V o S LO v � O � s o L � � r a O LO N LL U_ L � LL O ti C: O O CO N p CD V O o _ N N S V C N 's s LO H o AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Purchase of one 2017 Ford Study Session Date: February 8, 2017 Escape 4wd for DCD from Columbia Ford of COUNCIL MEETING Date: February 13, 2017 Longview, WA Department: PWU / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget shows a replacement in Department of Community Development of a 2001 GMC Sonoma P/U. The requested replacement is a 2017 Ford Escape 4wd with all required options per state contract No. 05916 in the amount of $22,231.62 including Washington State sales tax. The authorized dealer is Columbia Ford, Longview WA. The replaced vehicle will be removed from the fleet. ATTACHMENTS: 1) Washington State Contract 05916, quote 2017-1-101; 2) Justification FISCAL IMPACTS (Include Budgeted Amount): Budgeted within the 510 fund at $32,000 STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a Ford Escape 4wd with all required options per state contract No. 05916 in the amount of $22,231.62 including Washington State sales tax, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Charles Ernst From: NOREPLY@des.wa.gov Sent: Thursday, February 02, 2017 8:26 AM To: Charles Ernst Cc: Philip.Saunders@des.wa.gov Subject: Vehicle Quote **2017-2-48 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2017-2-48 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Columbia Ford (W403) 700 7th Avenue Longview WA 98632 Organization Information Organization: BREMERTON, CITY OF - 21801 Email: charies.emst@cl.bremerton.wa.us Color Options Oxford White - 1 Tax Exempt: N Vehicle Options Order Code Option Description 2017-0311-001 2017 Ford Escape Front -Wheel Drive, S Trim Level (U0F/100A) Dealer Contact: Marie Tellinghiusen Dealer Phone: (360) 423-4321 Ext: 187 Dealer Email: mariet@colford.com 2017-0311-005 S Trim - Fleet Cargo Management System (Includes Interior Cargo Cover, Perimeter Alarm, Power Converter 110V Outlet which replaces the rear center console powerpoint port, Black Roof Rails and Cross Bars)(Not available with SE Trim Upgrade options)(62S) 2017-0311-014 Upgrade Four Wheel Drive (Intelligent 4WD System) (Must also order either SE Trim Upgrade 1.5 or SE Trim Upgrade 2.0) (1.5L EcoBoost/4WD = 22/28 mpg) (2.OL EcoBoost/4WD = 20/27 mpg)(U9G/99X) (Credit due to factory incentive) Qty Unit Price Ext. Price 1 $18,898.00 $18,898.00 1 $390.00 $390.00 1 ($373.00) ($373.00) 2017-0311-015 Towing Package (Includes Maximum Factory Cooling Radiator, Engine Oil, Transmission) (Includes 4-pinl$489.00 $489.00 trailer wiring harness, 4 -pin connector, hitch receiver, trailer sway control, Class II, 3,500# Trailer Tow Capacity) (Must also order SE Trim Upgrade 2.0) (536) 2017-0311-201 One (1) Extra Remote Keyless Entry Fob with Integrated Key, Programmed (DLR) 1 $188.00 $188.00 2017-0311-205 Service Manual, CD (DLR) 1 $221.00 $221.00 2017-0311-208 Mud Flaps, Front & Rear (DLR) 1 $72.00 $72.00 2017-0311-209 Undercoating (DLR) 1 $125.00 $125.00 2017-0311-210 Floor Mats, HD Rubber Molded, Front (Weather Tech) (DLR) 1 $120.00 $120.00 1 Quote Totals Total Vehicles: 1 Sub Total: $20,340.00 Quote Total: $22,028.22 4 '3Na ;`bpi ,l02 � aa,a3t •�a 2017-0311-211 Floor Mats, HD Rubber Molded, Rear (Weather Tech) (DLR) 1 $90.00 $90.00 2017-0311-212 Floor Mats, HD Rubber Molded, Cargo Area (Weather Tech) (DLR) 1 $120.00 $120.00 Quote Totals Total Vehicles: 1 Sub Total: $20,340.00 Quote Total: $22,028.22 4 '3Na ;`bpi ,l02 � aa,a3t •�a Vehicle Standard Specifications And Additional Information Vehicle: 2017 Ford Escape 2WD S Contract #: 05916 - Motor Vehicles Dealer: Columbia Ford Vehicle Standard Specifications And Additional Information Page 1 of 2 Specification Description Specification 2017 Ford Escape 2WD (Front Wheel Drive), S Trim UOF/100A 2.51, i -VCT 4 -cylinder engine 997 6 -Speed Automatic Transmission with SelectShift STANDARD Electric Power -Assisted Steering (EPAS) STANDARD 4 -wheel Anti -Lock Disc Brake System (ABS) STANDARD Airbags: Dual Stage Front, Driver Knee, Front -Seat ounted Side -Impact, Safety Canopy STANDARD lectronic Traction Control [Front/Rear STANDARD Stabilizer Bar STANDARD Auto Halogen Headlamp STANDARD Air -Conditioning STANDARD Full Carpeting, Front and Rear Carpeted Floor Mats STANDARD Dome Light, Front and Rear Center, Front Map Lights, Rear Cargo Area Light STANDARD Head Restraints and Three -Point Safety Belts, all (5) Seating Positions STANDARD Cruise Control, Manual Tilt and Telescoping STANDARD Power Windows, Door Locks and Mirrors STANDARD 235/55 R17 Tires, 17" Steel Wheel and Cover STANDARD Mini Spare Tire, Wheel Nut Wrench and Jack STANDARD Tire Pressure Monitoring System (TPMS) STANDARD Five -Passenger, Cloth Buckets, 6 -Way Manual Driver's Seat, 2nd Row 60/40 Fold -Flat Split Bench STANDARD AM/FM/Single CD/MP3 STANDARD Powerpoints: (4) Front/Top Center Console, Inside Console, Rear of Console and Cargo Bin STANDARD Rearview Camera with 4.2" Screen STANDARD Remote Keyless Entry (4 FOBS) STD/DLR SYNC Voice -Activated Communications System, includes (1) Smart Charging USB Port STANDARD Front Windshield Wipers, variable intermittent STANDARD Rear Liftgate Wiper, intermittent wash/wipe STANDARD Rear Defroster STANDARD Daytime Running Lamps, Configurable (on/off) STANDARD https://fortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=600 2/2/2017 Vehicle Standard Specifications And Additional Information Page 2 of 2 Fuel Capacity, 16.2 Gallons STANDARD 3-year/36,000 Mile Bumper -to -Bumper, 5-year/60,000 Mile Powertrain Warranty STANDARD 60-120 Days Order to Delivery STANDARD Exterior Paint: Oxford White, Ingot Silver, Magnetic, Shadow Black, Canyon Ridge, White Gold, Lightning Blue STANDARD Exterior Paint (Extra Cost): Ruby Red Metallic Optional https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=600 2/2/2017 o C\f a' aD U (II N E L N �� Z� O UW _ y ,m LL _ O og 'i +p LL v _ oo ti V � CLo N (.0 •_m i.i L r O W a i a LO 00 O �a Q _ m L Q E LL U Coa> o Q CE r _ (II E om W LL o N o �_CO _• D z M = N U 0 o o a 2 O O T LL N = N O N S L r U U W LU C v H .. 0o0 s .y C'4•• D O LLL � H > 7- AGENDA BILL CITY OF BREMERTON B7 CITY COUNCIL SUBJECT: Purchase of one 2017 Ford F- Study Session Date: February 8, 2017 350 from Columbia Ford of Longview, WA COUNCIL MEETING Date: February 13, 2017 Department: PWU / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget shows a replacement in the Forestry Department of a 2001 Ford F-250 4x4. The requested replacement is a 2017 Ford F-350 4wd Pickup with all required options per state contract No. 05916 in the amount of $38,909.71 including Washington State sales tax. The authorized dealer is Columbia Ford, Longview WA. The replaced vehicle will be removed from the fleet. ATTACHMENTS: 1) Washington State Contract 05916, quote 2017-1-102; 2) Justification FISCAL IMPACTS (Include Budgeted Amount): Budgeted within the 510 fund at $40,000 STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of a 2017 Ford F-350 4wd Pickup with all required options per state contract No. 05916 in the amount of $38,909.71 including Washington State sales tax. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Pt-im,# 44 L a -a l Charles Ernst From: NOREPLY@des.wa.gov Sent: Tuesday, January 10, 2017 8:40 AM To: Charles Ernst Cc: Philip.Saunders@des.wa.gov Subject: Vehicle Quote **2017-1-102 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2017-1-102 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Columbia Ford (W403) 700 7th Avenue Longview WA 98632 Organization Information Organization: BREMERTON, CITY OF - 21801 { Email: charles.emst@ci.bremerton.wa.us Color Options Dealer Contact: Marie Tellinghiusen Dealer Phone: (360) 423-4321 Ext: 187 Dealer Email: mariet@colford.com VSO - Green Gem Extra Cost - 1 - - — Tax Exempt: N Order Code Option Description Qty Unit Price Ext. Price 2017-0823-001 2017 Ford F350 Regular Cab, 4WD, 142WB, 8ft Box, 6.21- V8 Gas, TorgShift 6 -speed auto #611140 1 $26,549.00 $26,549.00 w/SelectShift, 10300# GVWR, 4030# Payload, 3.73 RAR (F3B/610A/996/44P/142WB) 2017-0823-003 Alternative Cab/Wheelbase: Extended Cab, 164WB, 8ft box, 10700# GVWR, 3980# Payload 1 $2,167.00 $2,167.00 (X3B/164WB) 2017-0823-019 Medium Duty Battery, Dual 78AH, 150OCCA Total (Included with diesel) (86M) 2017-0823-020 Extra Extra HD 240 Amp Alternator (Only available with gas) (67E) 2017-0823-022 Skid Plates (Transfer case and fuel tank) (4x4 Only) (included with FX4 Off -Road Package #17X) (41P) 2017-0823-024 Power Equipment Group - Regular/Extended Cabs (includes power door locks and windows, manual - folding, manually -telescoping trailer tow mirrors with power heated glass, heated convex spotter mirror, integrated clearance lamps/tum signals, perimeter alarm, power tailgate lock, Remote Keyless Entry, upgraded door -trim panel) (deletes passenger -side door lock cylinder) (Includes (4) RKE Fobs w/ Integrated Keys) (90L) 1 $201.00 $201.00 1 $82.00 $82.00 1 $96.00 $96.00 1 $1,173.00 $1,173.00 2017-0823-032 LT275/70Rx18E BSW All -Terrain Plus w/ 18" argent painted steel Ywheels w/ painted hub covers/center 1 $594.00 $594.00 ornaments (Increased GVWR Gas/Diesel: Reg 142WB 11300#/11500#, Ext 148WB 11300#/11500#, Ext 164WB 11500#/11500#, Crew 160WB 11300#/11500#, Crew 176WB 11500#/11500#) (Not available with Dual Rear Wheel models) (TDX/64F) (4x4 Only) 2017-0823-038 5 -inch chrome tubular step bar (Not available with Regular Cabs) (18C) 1 $474.00 $474.00 1 Quote Totals Washington State Tax 9% + Excise Tax .3% = 9.3% $35,599.00 $ 3,310.71 Tax $38,909.71 Total Vehicles: $1.00 Sub Total: $35,599.00 8.3 % Sales Tax: $2,954.72 ', Quote Total: $38,553.72 ©3 .q 'vo , �Z 9 � 2017-0823-039 Rearview Camera (Electrochromic mirror with video display) (If ordered with XL Value Package #96V, display will be in center stack screen) (Not available with Pickup Box Delete #66D) (871) 1 $355.00 $355.00 2017-0823-044 Rear window defrost, power-sliding privacy glass (Must also order Power Equipment Group #90L) (Not available on Regular Cabs)(435/924) 1 $415.00 $415.00 2017-0823-046 Reverse Sensing System (Not available with Pickup Box Delete #66D) (76R) 1 $234.00 $234.00 2017-0823-047 Upfitter Switches (6) (located in overhead console) (Must also order Extra HD Alternator #67D) (66S) , 1 $158.00 $158.00 2017-0823-058 Splash Guards/Mud Flaps, Front and Rear (factory) (Not available with Dual Rear Wheel Models or Pickup Box Delete #66D) (61S/62S) i 1 $124.00 $124.00 2017-0823-059 Exterior backup alarm (factory) (76C) 1 $133.00 $133.00 2017-0823-064 SYNC - Voice Recognition Communications (hands-free cell phone) (Includes 911 Assist, 4.2" LCD screen in center stack, AppLink, and (1) smart-charging USB port) (Must also order AM/FM/Single CD #585 or XL Value Package #96V) (91M) 1 $350.00 $350.00 2017-0823-067 110V/400W Outlet (with 40/20/40 seats, there is one in-dash mounted outlest; 2nd outlet in the console requires 40/console/40 seats) (Must also order Extra HD Alternator #67D) (43C) 1 $72.00 $72.00 2017-0823-080 Trailer Brake Controller (included with Dual Rear Wheel models)(52B) 1 $259.00 $259.00 i 2017-0823-081 SRW Electronic Locking Rear Axle (Only available with Single Rear Wheels)(3.31 or 3.55 w/diesel, 3.73 or 4.30 w/gas) (X3H/X33/X3E/X4M) 1 $374.00 $374.00 2017-0823-095 VSO Special Paint, Green Gem (add 30 days) 1 $643.00 $643.00 2017-0823-105 Undercoating (DLR) 1 $155.00 $155.00 2017-0823-106 Service Manual, CD (DLR) 1 $221.00 $221.001 2017-0823-108 Spotlight, 6" Clear Lens, Pillar Mounted, Driver Side (Unity) (DLR) 1 $350.00 $350.00 j 2017-0823-110 Spray-In Bedliner (Line-X) (DLR) 1 $420.00 $420XOO Quote Totals Washington State Tax 9% + Excise Tax .3% = 9.3% $35,599.00 $ 3,310.71 Tax $38,909.71 Total Vehicles: $1.00 Sub Total: $35,599.00 8.3 % Sales Tax: $2,954.72 ', Quote Total: $38,553.72 ©3 .q 'vo , �Z 9 � Vehicle Standard Specifications And Additional Information Vehicle: 2017 Ford F350 (4WD), Regular Cab Contract #: 05916 - Motor Vehicles Dealer: Columbia Ford Vehicle Standard Specifications And Additional Information Page 1 of 2 https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=606 1/10/2017 Specification Description Specification 2017 Ford F350 Regular Cab, 4WD, 142" Wheelbase, 8 -foot box, XL Trim Level F3B/610A/142WB 10300# GVWR, 3900# Payload, 3.37 RAR STANDARD 6.21,2 -Valve Gas SOHC EFI NA V8 (Flex Fuel Capable) 996 Six -Speed Automatic Transmission w/ SelectShift (6R140) 44P Manual transfer case with manual locking hubs STANDARD Brakes: Four-wheel power disc with anti -locking braking system (ABS) STANDARD Solar tinted glass (not privacy glass) STANDARD Pickup box and cargo area lamps STANDARD LT245/75Rx17E BSW All -Season PLUS TD8 (inc. 17" argent painted steel wheels/painted hub covers) 64A Full-size spare tire (underbody mounted), 2 -Ton mechanical jack STANDARD Individual Tire Pressure Monitoring System (TPMS) STANDARD Removable tailgate with key lock and tailgate assist STANDARD Pickup box tie -down hooks (4) STANDARD Front Tow Hooks (2) STANDARD Powerpoints: (2) in instrument panel STANDARD Door Trim: molded with armrest/grab handle and reflector STANDARD Headliner: color -coordinated cloth STANDARD Dome lamp, dual map lights STANDARD Interior Hood Release, underhood service light STANDARD Power Steering STANDARD Intermittent Windshield Wipers STANDARD AdvanceTrac with Roll Stability Control (RSC) STANDARD Airbags: driver and passenger frontal and side airbag curtain STANDARD Center high -mounted stop lamp (CHMSL) STANDARD Stationary Elevated Idle Control (SEIC) STANDARD https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=606 1/10/2017 Vehicle Standard Specifications And Additional Information Page 2 of 2 https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=606 1/10/2017 rill Alternator, 157 Amps STANDARD Battery, 650CCA, 72 AH STANDARD HD gas shock absorbers, Front stabilizer bar STANDARD Trailer Tow Package: 7 -wire harness with relays and 7/4 pin connector STANDARD 2.5" trailer hitch receiver (includes 2" - 2.5" sleeve reducer) STANDARD 34 -gallon fuel tank STANDARD Black front/rear bumpers, grille and door handles STANDARD Quad beam halogen jewel effect headlamps, auto on/off with rainlamp wiper activation STANDARD Manually telescoping/folding trailer tow mirrors with manual glass STANDARD Manual single -zone air-conditioning STANDARD AM/FM stereo with (4) speakers STANDARD Outside temperature display STANDARD Black vinyl flooring STANDARD Manual door locks, windows and mirrors STANDARD Seats: Vinyl Front 40/20/40 split bench with center armrest, cupholder and storage (includes driver side manual lumbar) STD/TTA Height Adjustable Seatbelts (front outboard seating positions only) STANDARD Manual tilt/telescoping steering wheel/column STANDARD Dual color -coordinated sun visors, driver w/ pocket, passenger w/uncovered mirror STANDARD Trailer Sway Control and Hill Start Assist STANDARD SecuriLock Passive Anti -Theft System (PATS) STANDARD Keys/Locks: Manual lock cylinders on front doors, (4) PATS Keys STD/DLR Warranty: 3/36 Bumper to Bumper, 5/60 Powertrain STANDARD Order -to -Delivery, 90-120 days STANDARD Exterior Paint (No Charge)(M=Metallic): Oxford White, Ingot Silver M, Race Red, Blue Jeans M, Magnetic M, Caribou M, Shadow Black STANDARD Extra Cost VSO Paint (add 30 days): Vermillion Red, School Bus Yellow, Green Gem Optional https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=606 1/10/2017 Charles Ernst From: David Denis Sent: Tuesday, December 20, 201610:27 AM To: Charles Ernst Cc: Ken Donleycott Subject: New Rig Here are some of the things we discussed at the shop the other day. I have also included additional things that came to mind. F 350 gas engine Extended cab with rear seat 4 wheel drive f Automatic transmission Manual locking hubs Full size bed Electric windows �. Air conditioning Z. Dark green in color 60/40 front bench seats Cruise control & Sliding rear window/ Rhino line bed & Cancel backup alarm button Toyo open country all weather tires Tow package Running boards (but not running boards, cab step type Thank you for doing this for us. Charles Ernst From: David Denis Sent: Wednesday, December 21, 201610:34 AM To: Charles Ernst Subject: RE: New Rig I'm not sure if Ken already answered this or not, but thank you for the questions. No on the duel rear wheels. No on the crew cab/6 pack/ full size 4 door, however, yes on the little 'partial' door for the back seat. Similar to what I have now.. suicide doors? Not sure how to describe it. Thanks again. From: Charles Ernst Sent: Tuesday, December 20, 201610:39 AM To: David Denis <David.Den is@ci.bre merton.wa.us> Cc: Ken Donleycott <Ken.Donleycott@ci.bremerton.wa.us> Subject: RE: New Rig Do you want 4 door? Dual rear wheels? From: David Denis Sent: Tuesday, December 20, 201610:27 AM To: Charles Ernst <Charles.ErnstPci.bremerton wa us> Cc: Ken Donleycott <Ken.Don levcottpci.bremerton wa us> Subject: New Rig Here are some of the things we discussed at the shop the other day. I have also included additional things that came to mind. F 350 gas engine Extended cab with rear seat 4 wheel drive Automatic transmission Manual locking hubs Full size bed Electric windows Air conditioning Dark green in color 60/40 front bench seats Cruise control Sliding rear window Rhino line bed Cancel backup alarm button Toyo open country all weather tires Tow package Running boards (but not running boards, cab step type). Thank you for doing this for us. Z O U LL U) 1 Z W n� li W 2 O LL i LL i O LO M LL O LL U U (II N N E E 7 N M cu cu O U ai M cB N � U N o � � O Ln .vCN S v � O � V O � 7 � i d O O LO M LL O � LL O ti Ln N O Li N p 70 N LL O _ N N S V LU C N s rn s 0 H > AGENDA BILL CITY OF BREMERTON B8 CITY COUNCIL SUBJECT: Purchase of two 2017 Chevrolet Study Session Date: February 8, 2017 Silverado'/2 Ton Pickups for the Water Utility COUNCIL MEETING Date: February 13, 2017 from Bud Clary Chevrolet of Longview, WA Department: PWU / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget shows a purchase of two 1/2 ton pickups for the Water Utility. The requested purchase is for two 2017 Chevrolet Silverado 1/2 ton P/U with all required options per state contract No. 05916 in the amount of $71,077.50 including Washington State sales tax of 9%. The authorized dealer is Bud Clary Chevrolet, Longview WA. ATTACHMENTS: 1) Copy of Washington State Contract 05916, quote 2017-1-105; 2) Justification FISCAL IMPACTS (Include Budgeted Amount): The vehicles are budgeted within the Water Capital Fund and will be purchased from the ERR Fund. The Water Capital Fund will transfer contributing funds to ERR. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of two 2017 Chevrolet Silverado 1/2 ton pickups with all required options per state contract No. 05916 in the amount of $71,077.50 including Washington State sales tax; and authorize the transfer of funds in the amount of the purchase from the Water Capital fund to the ERR fund and increase the expenditure capital budget in the ERR fund by the same amount. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Charles Ernst W From: NOREPLY@des.wa.gov Sent: Tuesday, January 10, 2017 9:24 AM To: Charles Ernst Cc: Philip.Saunders@des.wa.gov Subject: Vehicle Quote **2017-1-105 - BREMERTON, CITY OF - 21801 P -6j ems - Vehicle Quote Number: 2017-1-105 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Bud Clary Chevrolet (W262) Dealer Contact: Becky Davis Dealer Phone: (360) 423-1700 Organization Information r-- - Organization: BREMERTON, CITY OF - 21801 Email: charles.emst@ci.bremerton.wa.us Color Options SUMMIT WHITE - 2 Tax Exempt: N Vahirla nnfinnc Order Code 2017-0808-001 2017-0808-002 12017-0808-005 2017-0808-007 2017-0808-009 2017-0808-012 Option Description Qty Unit Price Ext. Price 2017 Chevrolet Silverado 1/2 Ton Pickup (4WD), Extended Cab(CC15753) 4.31- V-6 2 $28,304.36 $0.00 Engine 5.3 L V-8 (1-83) 2 $1,135.00 $0.00 Bedliner, Spray On (Over the Rails and Tailgate) (DLR) 2 $390.00 $0.00 Running boards black tubular: Extended Cab (VX]) 2 $650.00 $0.00 Hands Free, Bluetooth, radio 7inch touch screen am/fm radio streaming music(IOB) 2 $200.00 $0.00 Mirrors, Alternative Power Camper Style, Heated (DPN) 2 $350.00 $0.00 20170808-013 Mud Flaps, Front & Rear (NQK) 2 $215.00 $0.00 2017-0808-022 Tow Hooks, Front (V76) 2 $50.00 $0.00 2017-0808-023 Trailer Brake Controller (31-1) 2 $275.00 $0.00 12017-0808-024 Undercoating (DLR) 2 $190.00 $0.00 2017-0808-026 TRAILERING PACKAGE- INCLUDES TRAILER HITCH 7 PIN AND 4PIN CONNECTORS(Z82) 2 $395.00 $0.00 2017-0808-027 up fitter switches (91-7)(NOT WIRED ]UST FACE PLATE) 2 $125.00 $ 0.00 1 Quote Totals Total Vehicles: $2A0 Sub Total: $65,208.72 8.3 % Sales Tax: $5,412.32 Quote Total: $70,621.04] �' F7 Tax is 9.3% (Which includes. 3% Excise Tax) 65,208.72 6,064.41 (9.3% Tax) 71,273.13 Total Amaount I 2017-0808-028 BACK UP CAMERA (UVC) 2 $200.00 $0.00 2017-0808-030 POWER OUTLET 110- volt AC (K14) 2 $125.00 $0.00 Quote Totals Total Vehicles: $2A0 Sub Total: $65,208.72 8.3 % Sales Tax: $5,412.32 Quote Total: $70,621.04] �' F7 Tax is 9.3% (Which includes. 3% Excise Tax) 65,208.72 6,064.41 (9.3% Tax) 71,273.13 Total Amaount Vehicle Standard Specifications And Additional Information Vehicle: 2017 Chevrolet Silverado 1/2 Ton Pickup (4WD), Extended Cab V-6 Contract #: 05916 - Motor Vehicles Dealer: Bud Clary Chevrolet Vehicle Standard Specifications And Additional Information Page 1 of 2 https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=554 1/10/2017 Specification Description Specification GV WR (6000# Minimum) 7100# Engine (Minimum 3.61, V6) 4.3L V-6 Box Length 6.5 Ft Air Bags, Driver and Front Passenger FCY/STD Air Conditioning FCY/STD Alternator (Minimum 100AMP) 155 (Minimum 600 CCA) rAMPBattery 750 Brakes, HD Power 4 Wheel, Anti -Locking System FCY/STD Bumper, HD Rear Step FCY/STD Cruise Control/Tilt Steering Wheel FCY/STD Dome Light FCY/STD Door Trim Panels FCY/STD Floor Covering, Vinyl FCY/STD Fuel Capacity 26 Gallon Gauges In Lieu of Warning Lights (FCY) Speedometer, Tachometer, Volt, Fuel, Coolant temp Glass, Tinted All Around FCY/STD Headliner, Non Metallic FCY/STD Keys, Four (4) Set of Exterior Keyed Door Locks, Driver & Front Passenger Doors, or Remote Keyless E DLR Mirrors, Heated Manufacturer's Standard Exterior Mirrors, L & R FCY/STD Power Group (Windows, Door Locks, Mirrors) FCY/STD -------------- Radio, AM/FM (Factory Installed) FCY/STD Rear Axle Ratio 3.42 Seating, Head Restraint Type, Vinyl or Cloth Front Bench Folding Vinyl Spare Tire Carrier, Jack, Lug Wrench Full size conventional spare FCY/STD Steering, Power FCY/STD P265/70R17 https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=554 1/10/2017 Vehicle Standard Specifications And Additional Information Page 2 of 2 Tires, Radial, All Season, Matching Full Size Spare Tire and Wheel Transmission, Automatic FCY/STD Wipers, Intermittent FCY/STD Factory Warranty 3 Yr/36,000 (BTB), BTB = Bumper to Bumper 5 Yr/60,000 (DT) DT = Drivetrain Equipment above, if any, that will not be OEM factory installed None Ground Clearance 8.7» Tire chain compatible as equipped above Yes/Chains Mercury Content, If Any, In Vehicle None Vehicle Emission Level Certification (CA) 50 STATE EPA Estimated MPG as equipped above City 17 Hwy 22 NHTSA Crash Test Ratings (1 to 5 stars) Frontal, Driver - NR NHTSA Crash Test Ratings (1 to 5 stars) Passenger - NR NHTSA Crash Test Ratings (1 to 5 stars) Side/Front - NR NHTSA Crash Test Ratings (1 to 5 stars) Side/Rear - NR NHTSA Crash Test Ratings (1 to 5 stars) Rollover - NR Days to Deliver after receipt of order 90 to 120 Starting Date of Model Year Production In Production https://fortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=554 1/10/2017 Charles Ernst ®� From: NOREPLY@des.wa.gov Sent: Tuesday, November 22, 201612:31 PM To: Charles Ernst Cc: Steve.Hatfield@des.wa.gov Subject: Vehicle Quote - 2016-11-310 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2016-11-310 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract 8t Dealer Information contract #: 03813 Dealer: Bud Clary Chevrolet (W262) Organization Information Organization: BREMERTON, CITY OF - 21801 Email: chades.emst@ci.bremerton.wa.us Color Options r- SUMMIT WHITE - 2 Tax Exempt: N Dealer Contact: Becky Davis Dealer Phone: (360) 423-1700 Vehicle Options Order Code 2017-823-001 Option Description 2017 Chevrolet Silverado 1/2 Ton Pickup (4WD), Extended Cab(CK15753) 4.31- V-6 Qty 2 Unit Price $28,304.36 Ext. Price $56,608.72 2017-823-002 Engine 5.3 L V-8 (1-83) 2 $1,135.00 $2,270.00 2017-823-005 Bedliner, Spray On (Over the Rails and Tailgate) (DLR) 2 $390.00 $780.00 2017-823-010 Hands Free, Bluetooth, radio 7inch touch screen am/fm radio streaming music(IOB) 2 $200.00 $400.00 2017-823-015 Mud Flaps, Front & Rear (DLR) 2 $140.00 $280.00 2017-823-026 Tow Hooks, Front (V76) 2 $50.00 $100.00 2017-823-027 Trailer Brake Controller (31.1) 2 $275.00 $550.00 2017-823-028 Undercoating (DLR) 2 $190.00 $380.00 2017-823-030 TRAILERING PACKAGE- INCLUDES TRAILER HITCH 7 PIN AND 4PIN CONNECTORS(Z82) 2 $375.00 $750.00' 2017-823-033 BACK UP CAMERA (UVC) 2 $200.00 $400.00 2017-823-037 POWER OUTLET 110- volt AC (KI4) 2 $125.00 $250.00 Quote Totals I Total Vehicles: Sub Total: $62,768.72 8.3 % Sales Tax: $5,209.801 Quote Total: $67.978 97 Vehicle Purchase Justification Purchase of two Chevrolet Silverado % Ton Pickups Budgeted 2017 Water Utility (401 Equipment) Currently, the Utility/Facility Manager and the Utility Inventory/Facility Supervisor are not assigned vehicles. It is imperative that each of these positions have a dedicated vehicle that is stocked with the necessary tools, safety equipment, electronic equipment, etc. to perform their respective duties. Managers and Supervisors are called on regularly to respond to system emergencies, urgent City business, or employee accidents, along with their normal crew monitoring responsibilities. SUBJECT: Purchase of Five Ford Interceptors for the Police Department from Columbia Ford of Longview, WA; and associated Safety Equipment from Systems for Public Safety Inc., of Lakewood, WA AGENDA BILL CITY OF BREMERTON CITY COUNCIL Study Session Date: February 8, 2017 COUNCIL MEETING Date: February 13, 2017 Department: PW&U / ERR Presenter: Milenka Hawkins -Bates Phone: 473-5333 SUMMARY: The approved 2017 budget for fund 510 shows replacement of Five Police Patrol Vehicles and associated Safety Equipment. We will be utilizing State Contract No. 05916. The total cost for the Five Vehicles plus associated safety equipment per quotes is $ 263,926.69 including Washington State sales tax. ATTACHMENTS: 1) Quote from Columbia Ford; 2) Quote from Systems for Public Safety 3) Justification for Replacement FISCAL IMPACTS (Include Budgeted Amount): Budgeted within the 510 fund STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of five Ford Interceptors in the amount of $184,312.59, including Washington State sales tax, from Columbia Ford of Longview WA.; and the purchase of the associated safety equipment for the five vehicles in the amount of $79,614.10, including Washington State sales tax, from Systems for Public Safety Inc. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Charles Ernst From: NOREPLY@des.wa.gov Sent: Tuesday, January 17, 2017 7:48 AM To: Charles Ernst Cc: Philip.Saunders@des.wa.gov Subject: Vehicle Quote **2017-1-319 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2017-1-319 Create Purchase Request View organization purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Columbia Ford (W403) 700 7th Avenue Longview WA 98632 Organization Information Dealer Contact: Marie Tellinghiusen Dealer Phone: (360) 423-4321 Ext: 187 Dealer Email: mariet@colford.com Organization: BREMERTON, CITY OF - 21801 Email: chades.emst@ci.bremerton.wa.us Color Options Shadow Black - 5 Tax Exempt: N Vehicle Options Order Code Option Description Qty Unit Price Ext. Price 2017-0506-001 2017 Ford Police Interceptor AWD Pursuit -Rated Utility/SUV (K8A/500A) 5 $26,464.00 $26,464.00 2017-0506-009 Front Headlamp Lighting Solution [Includes Pre -wire for grille LED lights, siren and speaker #60A; base 5 $841.00 $841.00 LED Low Beam/Incandescent (Halogen) High Beam Headlamp with High Beam Wig -Wag function and two (2) white rectangular LED side warning lights; Wiring, LED lights are included; Controller not included] (Included with Ready for the Road Package)(When ordered as a stand-alone option, recommend also ordering Cargo Wiring Upfit Package #67G or Ultimate Wiring Package #67U) (66A) 2017-0506-018 Side Marker LED, Sideview Mirrors (Driver side - Red / Passenger side - Blue) (Located on backside of 5 $287.00 $287.00 exterior minor housing) (LED lights only. Wiring and controller "not' included.) (Must also order Pre - wiring for grille lamp, siren and speaker #60A) (63B) 2017-0506-019 Rear Quarter Glass Side Marker Lights (Driver side - Red / Passenger side - Blue) (63L) 2017-0506-026 Noise Suppression Bonds (Ground Straps)(6011) 2017-0506-028 Dome Lamp — Red/White Vn Cavo Area(17T) 5 $568.00 $568.00 5 $99.00 $99.00 5 $51.00 $51.00 2017-0506-029 Daytime Running Lights (942) 5 $44.00 $44.00 2017-0506-031 Police Silent Mode (when activated, courtesy lamps, chimes and daytime running lights are disabled) 5 $20.00 $20.00 (Must also order Daytime Running Lights #942) (43L) 1 2017-0506-032 Police Engine Idle Feature (when activated, allows the key to be removed from ignition while vehicle 5 $258.00 $258.00 remains idling, which allows driver to leave the engine running and prevents vehicle from unauthorized use when driver is outside of the vehicle) (47A) 2017-0506-034 BUS Blind Spot Monitoring with Cross -Traffic Alert (also includes Heated Sideview Mirrors 5 $538.00 $538.00 #549)(55B/54Z) 2017-0506-038 Doors/Locks: Rear Door Handles Inoperable / Locks Inoperable (68G) 5 $35.00 $35.00 2017-0506-042 SYNC Basic Voice -Activated Communications System (includes single USB port and single auxiliary audio 5 $291.00 $291.00 input jack) (53M) 2017-0506-043 Remappable (4) switches on steering wheel (if ordered with SYNC, includes Voice Button) (61R/61S) 5 $154.00 $154.001 2017-0506-045 Reverse Sensing System (76R) 5 $271.00 $271.001 2017-0506-049 Fleet Keyed Alike (Call dealer for available key codes) (NEW - allowed to also order Remote Keyless 5 $51.00 $51.00 Entry #595) (KEY) 2017-0506-050 Rear Console Plate (wiring conduit from front console plate to rear seat) (Included with Ready for the 5 $35.00 $35.00 Road Package) (N/A with Interior Upgrade Package #65U or Front Console Plate Delete #85D) (85R) 2017-0506-053 Spot Lamp, LED Bulb, Driver Only (Unity)(51R) 5 $390.00 $390.00 2017-0506-064 Deflector Plate (std on EcoBoost engine)(76D) 5 $331.00 $331.00 2017-0506-078 Two -Tone Vinyl Wrap Package #1, White (Roof, RH/LH Front Doors, RH/LH Rear Doors)(91A) 5 $829.00 $829.00 2017-0506-207 Manuals, Service (CD) (DLR) 5 $221.00 $221.00 2017-0506-208 Service Wiring Diagram, Paper (DLR) 5 $87.00 $87.00 2017-0506-209 Mud Flaps, HD Plastic (Set of 4) (DLR) 5 $90.00 $90.00 2017-0506-210 Undercoabng(DLR) 5 $155.00 $155.00 2017-0506-21-3 Push Bumper Upgrade, HD Fender Wraps (Selina PB5)(to be ordered with Selina Push Bumpers) (DLR) 5 $368.00 $368.00 2017-0506-215 Push Bumper, Lighted Pursuit, Front/Side Red/Blue LEDs, (Selina PB450L4) (DLR) 5 $843.00 $843.00 2017-0506-217 Door Panels, Rear Doors (TPO, Selina) (Must also order Hidden Door Lock Plunger or Inoperable Rear 5 $203.00 Door Locks #67H, #68G, #52H or #52P) (Installed) (DLR) 2017-0506-219 Window Harriers, Rear Doors, Polycarbonate Panels (Selina) (Must also order Hidden Plunger or 5 $202.00 Inoperable Rear Door Locks #67H, #68G, #52H or #52P) (Installed) (DLR) Quote Totals Washington State Tax +.3% Excise = 9.3% Tax 168,630.00 15,682.59 State & Excise Taxes 184,312.59 2 $203.00 $202.00 Total Vehicles: 5 Sub Total: $168,630.00 8.3 % Sales Tax: $13,996.29 Quote Total: $182,626.29 Systems for Public Safety Inc. ESTIMATE # 8909 South Tacoma Way Lakewood, WA. 98499 032766 Phone: 253-983-1103 Fax:253-983-1101 Safety is Our Business Estimate for Services Estimate Date: 1/24/2017 City of Bremerton 2017 Ford - Interceptor Utility - 3.7 100 Oyster Bay Ave. N Lic #: - WA Odom. In: 2926 Bremerton, WA 98312 VIN#: Part Description / Number Qty Sale Ext I Labor Description Hours Extended Whelen 8 lamp Directional Red Blue 1.00 455.00 455.0 TAD8RB Opticom Installation Bracket Kit 1.00 45.90 45.c. DKWSKT LEGACY WC 48" RW/BW/RW/BW 1.00 3,370.07 3,370.0 CANCTLA Whelen Cantrol with TA GB8DEDE-NW-PKG Siren, WHELEN- Projector Series 1.00 179.00 179.0 Speaker w/ Bracket SA315P WHELEN- Vertex - LED - Blue 2.00 77.55 155.1 -tail light leds VTX609B Vertex Hide -A -Way LED, Red 2.00 77.55 155.1 -tail light leds VTX609R 2013 Ford Interceptor Utility Standard 1.00 338.00 338.0 Console, 21 CDM -1250 Remote XTL-5000 Remote Blanks C-VS-1308-INUT Havis Dual Cup Holder 1.00 35.00 35.0 C-CUP24 Armrest For Top Mount, Console, Large 1.00 86.62 86.6 Pad C -ARM -103 Able 2 Triple Accessory Outlet 1.00 33.00 33.0 140553 #10 VS C RP Coated Poly Partition Tall w/ 1.00 659.10 659.1 SCA PK04191TU12TMSCA Single Adjustable Gun Rack #HK for 1.00 289.00 289.0 Sedan/Mid Size XL Lock Hand Cuff Key Overide. GK10271 UHKSSCA #12VS 2ND COATED POLY PARTITION cargo 12-14 INTERC PK03161TU122NDAl Interceptor Utility Prisoner Seat, Aedec With Center out Seat belts and ready buckle kit on partition. SUVIC1313 Side Mounted Prisoner Seat Belt Buckle Kit MLP05-017 1.00 379.00 379. 1.00 775.00 775. 1.00 79.06 79. Radio Mounting Box for Interceptor Utility 1.00 319.00 31 AK1040RADIO Power Distribution Unit 1.00 429.00 P3 Install MCT -Sector 2.00 170.00 Program Cantrol Siren. 3.00 255.00 Install listed Emergency Equipment and 55.00 4,675.00 Lighting to CANTROI SPEC - Install customer supplied remote mount CDM1250 radio with external speaker, 795H dash mount opticom unit, TAM83 (modify) and laptop mount and docking station with all necessary cables. Technicians removed trim paneling to open up wiring path, installed SPS plug n play wire harness and aux harness. Installed micron leds in factory grill cutout, tail light leds, quarter window leds, and prisoner light. Wired all lighting to Cantrol siren amp. including push bumper led and mirror beam wiring. Activated both Installed front recessed and rear cargo cages, rifle rack, prisoner east and radio mounting box. Installed console with arm rest, cupholder, mic. clips, side mounted three plug and map light. Installed antenna and ran RG58 cable to radio box. Installed laptop base plate and lower pole. Install supplied GTT opticom emitter to radio box and wired to push bumper led. Prewired for sector printer. Installed Kustom Signals radar unit. Installed directional stick. Wired all electronics to P3 power distribution and set power down to spec. Wired in relays for triggers, hatch open, door open, horn ring, gun lock. Shoutgun lock to ignition. Customer Supplied- Radio/VHF Antenna Sector Box/Cables Radar MCT Uppr Mount/Dock GTT Opticom Flashlights Ordered off State Contract: -PB450L4 lighted push bumper -LH Spotlight -window barriers -door skins -mirror beams Required Functions: -opticom and siren park kill door chime disable -2 spare 14ga red wire leads -horn ring circuit connected -pre-wire brake light cut -door open kills side of lightbar -traffic advisor cut when rear hatch is opened -Radar unit shall have speed signal input installed -rifle rack to ignition Radar: Kustom Control Head: Page 1 of 3 Copyright (c) 2017 Mitchell Repair Information Company, LLC esthrs 1.9.15JD Systems for Public Safety Inc. ESTIMATE # 8909 South Tacoma Way Lakewood, WA. 98499 032766 Phone: 253-983-1103 Fax:253-983-1101 Safety is Our Business Estimate for Services Estimate Date: 1/24/2017 City of Bremerton 2017 Ford - Interceptor Utility - 3.7 100 Oyster Bay Ave. N Lic #: - WA Odom. In: 2926 Bremerton, WA 98312 VIN#: Part Description / Number Qty Sale Ext SPS INUT Pigtail & Harness 1.00 345.49 345.45 1106/1107 SPS INUT NMO Kit 17ft 1.00 14.00 14.0( NMO58UPL 3" Round Compartment Light, Red/White 1.00 56.00 56.0( -prisoner light 3SRCCDCR Map Light; Red/White with Dimmer 18" 1.00 85.00 85.0( gooseneck CA0130 Ford Explorer (2011-2014), Taurus/Taurus 1.00 119.55 119.5E X (2008-2014), Sedan/Utility PI (2012-2014) Floor Plate 7160-0350 30/40 AMP Relay 4.00 6.25 25.0( 73980 9" lower Pole 1.00 38.48 38.41 DS -LOWER -9 SPS Auxilary Wire Harness 12.00 2.64 31.61 1104 -AUX Surface Mount Micron LED (Red) 1.00 92.34 92.3A MCRNSR Surface Mount Micron LED (Blue) 1.00 92.34 92.3A MCRNSB Havis Mic Clip Bracket 2.00 12.25 24.5( C-MCB Shipping on Equipment 1.00 120.00 120.0( Freight Headlight Flasher, Interceptor SUV 1.00 88.00 88.0( SSFFP16 ION Slim LED DUO Red White 2.00 130.20 260.4( Marker 1/4 Window 12D ION Slim LED DUO Blue White 2.00 130.00 260.0( Marker 1/4 Window 12E Shop Supplies 19.9E Front Antenna: Rear Antenna: Hours Page 2 of 3 Copyright (c) 2017 Mitchell Repair Information Company. LLC esthrs 1.9.15JD Systems for Public Safety Inc. ESTIMATE # 8909 South Tacoma Way Lakewood, WA. 98499 032766 Phone: 253-983-1103 Fax:253-983-1101 Safety is Our Business Estimate for Services Estimate Date: 1/24/2017 City of Bremerton 2017 Ford - Interceptor Utility - 3.7 100 Oyster Bay Ave. N Lic #: - WA Odom. In: 2926 Bremerton, WA 98312 VIN#: Part Description I $15,922.82 x 5 = $79,614.10 Parts/Supplies: 9,454.68 Labor: 5,100.00 HazMat/Fees: 0.00 Tax: 1,368.14 Total: $ 15,922.82 Visit Us Online: www.systemsforpublicsafety.com I hereby authorize the above repair work to be done along with the necessary material and hereby grant you and/or your employees permission to operate the vehicle described for testing and/or inspection. Express mechanic's lien is hereby acknowledged on above vehicle to secure the amount of repairs thereto. SMOG: I understand that I can have emission service and/or adjustments done elsewhere. I hereby waive this right. TEARDOWN ESTIMATE: I understand that my vehicle will be reassembled within days of the date shown above if I choose not to authorize the service recommended. All Parts removed will be discarded unless instructed otherwise: Save all Parts_. NOT RESPONSIBLE FOR LOSS OR DAMAGE TO CARS OR ARTICLES LEFT IN CARS IN CASE OF FIRE, THEFT OR ANY OTHER CAUSE. Signature Date Time Page 3 of 3 Copyright (c) 2017 Mitchell Repair Information Company, LLC esthrs 1.9.15JD 'm 0000 O O O O � COMNN > C0 C0 a 6,D- 4- 4- 4- 4- (D a) a) a) E E E E a) a) a) a) aaaa c ca U QQQQH C +; C V U 0000 LL _ 0000 O O O O d 0000LO •0 CN r r r r U) a Q ca L O p i > 0 i Q 07 07 07 07 � � N Z • N i C v LU a CL 3 a rn rn rn rn v a a n� 7 O O O O O U_ U_ U_uj U U m LL NO O O O O N c � v � UUUUU 2> c . . . . . CL LL ti L- rn rn rn rn o 0000 2 v LL N N N N N N N U U W 2 LU CL E) LO r` 00 0"t H O 00 U)c0 s c0 c0 r` LO LO LO LO LO AGENDA BILL B10 CITY OF BREMERTON CITY COUNCIL SUBJECT: Repair, Refurbishment, and Modification to the Fairbanks Morse Pump No. 3 at Pump Station WB -3 by Granich Engineered Products, Inc. of Seattle, WA Study Session Date: February 8, 2017 COUNCIL MEETING Date: February 13, 2017 Department Presenter: PW&U/WWTP Pat Coxon Phone: (360) 473-5448 SUMMARY: Pump No.3 (Fairbanks Morse model 10") at pump station WB -3, experienced a failure to its mechanical seal and was pulled by staff for repairs. Once the pump was dismantled at the factory repair shop, the pump's cooling water jacket was found to be plugged with grit, which led to the mechanical seal failure. The cost for the repair of this pump is $25,854.30 from Granich Engineered Products Inc. This style of pump is a sewage cooled pump, and we cannot control the amount of fine grit that we receive at this station which led to this pump failure. Staff has devised a modification to the pump so that we can utilize a closed loop cooling system to keep this failure from occurring in the future. This will be the first of the three pumps that will be repaired and modified, and will extend the life of these pumps by another 25 — 30 years. ATTACHMENTS: Granich Engineered Products Inc. quote, and pictures of the pump dismantled. FISCAL IMPACTS (Include Budgeted Amount): Included in the 2017 WW CIP — WWTP & Pump Stations Improvement Program $250,000 STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the repair, refurbishment, and modification to the Fairbanks Morse Pump No. 3 at Pump Station WB -3 by Granich Engineered Products, Inc., in the amount of $25,854.30 (includes tax). COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Granich Engineered Products, Inc Quote Granich Engineered Products, Inc 1313 S 96`h Street Seattle, WA 98108 Phone: 866-859-2940 Fax: 206-315-2939 Website: www.granich.com To: City of Bremerton Attn: Daniel Haver E-mail: Phone: Daniel. Have rdei.bremerton.wa.us From: Ken Hogan Date: 01/20/2017 Re: Repair 10 D5435WD, 494610 Pages: I We are pleased to offer the following for your consideration. (1)- Service and repair of your Fairbanks Morse model 10" D5435WD, submersible dry pit non clog sewage pump to include: • Open and inspection • Clean parts • Balance impeller and rotating assembly • Machine and weld jack bolt arm • Flame spray shaft damaged at seal retainerjournal • Replace bearings, mechanical seals and O -rings • Replace thermals and fix sensor cable • Assemble • Quality check Price: $23,785.00 Net Please provide authorization to proceed with this work. Parts are 2 weeks out and 1 week to repair. Prices are F.O.B. factory. Sales tax is not included. Terms: Net 30 days on approved credit. This quote is based on GEP's standard terms & conditions of sale. Please call me if you have any questions or need additional information. Regards, K, Ha444,% Ken Hogan Granich Engineered Products, Inc GRANICN ENGINEERED PRODUCTS, INC '# 5 a -, i ML .. •.. b 1 ern Zk 6 rt!t Erra ., AGENDA BILL B11 CITY OF BREMERTON CITY COUNCIL SUBJECT: Contract Award to Northern Study Session Date: February 8, 2017 Land Development for the David Road COUNCIL MEETING Date: February 13, 2017 Water Main Replacement Project Department: PW&U, Engineering Presenter: Tom Knuckey Phone: (360) 473-2376 SUMMARY: The work under this contract includes the installation of 1,200 lineal feet of 8" ductile iron water main in David Road. The existing 4" steel water main is undersized and had required numerous repairs. Project site is located within the David Road right-of-way and west of Northlake Way. There were four bids submitted which were opened on January 25, 2017. The lowest responsive, responsible bidder was Northern Land Development who submitted a bid in the amount of $237,569.58 (which includes estimated sales tax). ATTACHMENTS: 1) Bid Tabulation; 2) Agreement FISCAL IMPACTS (Include Budgeted Amount): The project is fully funded in the 2017 Water Budget within the Substandard Water Main Replacement and Distribution Main Improvements line items which total $400,000. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the bid for the David Road Water Main Replacement Project from Northern Land Development in the amount of $237,569.58 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 01/07/15 c O w W Z ui n�¢a. Mn P 0 0 Om it z oz W O LU J LU IZ M E m m U.N c- 0 0 c O w W Z ui n�¢a. Mn P 0 0 kj o W \ co v W �- OU O m cr' `� a o to Lii U m m O Qin U- 0 e, oS ( C U Z w Q a� c W Q Z v LL w a m\o SW a y Q L O w Z o W ca o ZJ 0 Z w a Ir c CONTRACT (Page 1 of 3) THIS AGREEMENT is dated the day of and between the City of Bremerton (hereinafter called CITY) and (hereinafter called CONTRACTOR). in the year 2017 by CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: ARTICLE 1. WORK. CONTRACTOR shall complete the WORK as specified or indicated in the CITY's Contract Documents entitled DAVID ROAD WATER MAIN REPLACEMENT ARTICLE 2. CONTRACT TIMES. The WORK shall obtain Substantial Completion within 100 calendar days from the Notice to Proceed date. Time is of the essence for completion of the work. ARTICLE 3. LIQUIDATED DAMAGES. CITY and the CONTRACTOR recognize that time is of the essence for this Agreement and that the CITY will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Section 1-08.8 of the Standard Specifications which may be modified by the Special Provisions. They also recognize the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by the CITY if the WORK is not completed on time. Accordingly, instead of requiring any such proof, the CONTRACTOR shall pay the CITY liquidated damages in the amount of $500 per day after the date of Substantial Completion. ARTICLE 4. CONTRACT PRICE. CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract Documents in the amount set forth in the Bid Proposal, which shall include sales tax as provided in Section 1-07.2(2) of the Special Provisions. ARTICLE 5. PAYMENT PROCEDURES. CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the Standard Specifications which may be modified by the Special Provisions. Applications for Payment will be processed by ENGINEER as provided in the Special Provisions Contractor Initials City of Bremerton January 2017 David Road Water Main Replacement CF -1 Contract Contract Documents CONTRACT (Page 2 of 3) ARTICLE 6. CONTRACT DOCUMENTS. The Contract Documents which comprise the entire agreement between CITY and CONTRACTOR concerning the WORK consist of this Contract and the following attachments to this Contract: • Notice Inviting Bids, • Bidders Checklist, • Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and all required certificates and affidavits, • Performance Bond, • Payment Bond, • Standard Specifications, • Amendments to the Standard Specifications, • Special Provisions, • Appendices • Contract Plans, • Addenda numbers to , inclusive. • Change Orders which may be delivered or issued after Effective Date of the Agreement and are not attached hereto. There are no Contract Documents other than those listed in this Article 6. The Contract Documents may only be amended by Change Order as provided in Section 1-04.4 of the Standard Specifications which may be modified by the Special Provisions. ARTICLE 7. INDEMNIFICATION. The CONTRACTOR and CITY acknowledge and agree that they have negotiated the following in accordance with the requirements of RCW 4.24.115 and the CONTRACTOR specifically waives his immunity under industrial insurance under Title 51 RCW. To the fullest extent permitted by Laws and Regulations, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY, ENGINEER, their consultants, subconsultants, and the officers, directors, employees, and agents of each and any of them, against and from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, all claims and liability arising under, by reason of, related, or incidental to the Contract Documents or any performance of the WORK, but not from the sole negligence or willful misconduct of the CITY and/or the ENGINEER as further defined in the Contract Documents. The provisions of this section shall survive the termination of the contract. Contractor Initials City of Bremerton January 2017 David Road Water Main Replacement CF -2 Contract Contract Documents CONTRACT (Page 3 of 3) ARTICLE 8. ASSIGNMENT No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. The CITY, in its sole discretion, may refuse to allow the CONTRACTOR to assign any or all of its duties, rights and/or responsibilities under the Agreement, except with regards to an assignment of funds for security purposes. In the case of an assignment for security purposes the CITY may condition its approval to the extent it deems necessary to assure that there will be adequate funds to complete the WORK and to pay a subcontractors and suppliers. CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect of all covenants, agreements and obligations contained in the Contract Documents. IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be executed the day and year first above written. CITY: City of Bremerton CONTRACTOR By By Attest Address for giving notices Approved as to Form: (Signature) (Title) [CORPORATE SEAL] Attest Address for giving notices License No. Agent for service of process: City of Bremerton David Road Water Main Replacement CF -3 January 2017 Contract Documents Contract AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Acceptance of Right -of -Way Dedication Easement on Sheldon Boulevard for the Evergreen Pointe Apartment Project B12 Study Session Date: February 8, 2017 COUNCIL MEETING Date: February 13, 2017 Department Presenter: Phone: PW&U Knuckey 473-2376 SUMMARY: Clearview Sheldon LLC is the property owner of Parcel No. 132401-2-085-2006 and 132401-2-084-2007 which is the location of the proposed Evergreen Point Apartment Project. For the development to be constructed, the City requires frontage improvements to be constructed, and given site constraints a right-of-way dedication is necessary per BMC 11.12.090. The proposed dedication is generally for the north 5 -feet of their properties along Sheldon Boulevard. ATTACHMENTS: 1. Right -of -Way Dedication Easement; 2. Site Plan FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the right-of-way dedication easement granted by Clearview Sheldon LLC on Sheldon Boulevard for the Evergreen Point Apartment Project, 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 01/07/15 WHEN RECORDED RETURN TO: City of Bremerton Engineering — Streets & Roads c/o City Clerk 345 6t' Street, Suite 600 Bremerton, Washington 98337 Grantor: CLEARVIEW SHELDON LLC Grantee: City of Bremerton Abbreviated Legal Description: Govt Lot 1, Sec. 13, Twp. 24 N., Rg 1 E., W.M. Additional Legal Description on page 4 of Document. Assessor's Tax Parcel ID No. 132401-085-2006 and 132401-084-2007 RIGHT-OF-WAY DEDICATION EASEMENT Project: EVERGREEN POINTE APARTMENTS The Grantor, CLEARVIEW SHELDON LLC for valuable consideration, receipt of which is hereby acknowledged, grants, conveys and dedicates to the CITY OF BREMERTON, a Washington municipal corporation, and its successors and assigns, a permanent public right-of-way for the purpose of constructing, operating, maintaining, improving, altering, reconstructing and repairing public streets, roads, utilities and other public purposes over, under, through, across and upon the following described real property situated in Kitsap County, Washington: For legal description and any additional conditions See Exhibit A attached hereto and made a part hereof. To have and to hold the above described and dedicated rights forever. Pagel ofd' 7 Right -of -Way Dedication Easement It is understood and agreed that the delivery of this right-of-way is hereby tendered and that the terms and obligations hereof shall not become binding upon the City of Bremerton unless and until accepted and approved hereon in writing by the City of Bremerton. The grantors hereby covenant that they are the owner in fee simple and the property is free of all liens and encumbrances, except any right, title, easement, or encumbrance of record, they have good and legal right to grant, convey and dedicate the right-of-way above-described and they will pay all taxes and assessments due and owing on the property. GRANTOR: CLEARVIEW SHELDON LLC By DATE: STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP ) On this day of , 2C_, before me a Notary Public in and for the State of Washington, personally appeared , to me known to be the of , a Washington limited liability company that executed the foregoing instrument, and acknowledged it to be the free and voluntary act of said limited liability company, for the uses and purposes mentioned in this instrument, and on oath stated that they were authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires Page 2 of/ 7 Right -of -Way Dedication Easement Accepted on behalf of the City of Bremerton this day of 120 CITY OF BREMERTON by Patty Lent, Mayor APPROVED AS TO FORM: ROGER A. LUBOVICH City Attorney R:\LegailLegal\Forms\Easements\Right-of-Way Dedication Easement - LLC Grantor.doc Page 3 ofd 7 Right -of -Way Dedication Easement EXHIBIT A LEGAL DESCRIPTION OF RIGHT-OF-WAY TO BE GRANTED THAT PORTION OF THE FOLLOWING DESCRIBED PARCELS I AND II (PROPERTY OF THE GRANTOR) WHICH LIES NORTHERLY AND EASTERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT A MONUMENT MARKING THE EAST QUARTER CORNER OF SECTION 13, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN THE CITY OF BREMERTON, KITSAP COUNTY, WASHINGTON, BEING A POINT ON THE CENTERLINE OF PARK AVENUE; THENCE NORTH 0°57'54" EAST ALONG THE CENTERLINE OF SAID PARK AVENUE 381.47 FEET TO A MONUMENT MARKING ITS INTERSECTION WITH 12TH STREET; THENCE SOUTH 88°24'26" EAST ALONG THE CENTERLINE OF SAID 12TH STREET 577.05 FEET TO A MONUMENT MARKING ITS INTERSECTION WITH COGEAN AVENUE; THENCE NORTH 1°09'35" EAST ALONG THE CENTERLINE OF SAID COGEAN AVENUE 151.34 FEET TO IT'S INTERSECTION WITH A LINE LYING 25.00 FEET SOUTH OF AND PARALLEL WITH THE CENTERLINE OF SHELDON BOULEVARD; THENCE NORTH 88°27'21" WEST ALONG SAID PARALLEL LINE 15.00 FEET TO IT'S INTERSECTION WITH THE WEST RIGHT-OF- WAY LINE OF COGEAN AVENUE AND THE POINT OF BEGINNING OF THIS LINE; THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 88°27'21" WEST 19.80 FEET TO THE BEGINNING OF A 203.95 FOOT RADIUS CURVE; THENCE ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 51012'21" FOR AN ARC DISTANCE OF 182.27 FEET; THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 34008'59" WEST 138.13 FEET, MORE OR LESS, TO THE SOUTHEASTERLY RIGHT-OF-WAY LINE OF McKENZIE AVENUE AND THE POINT OF TERMINATION OF THIS LINE. 4 PARCEL I: (TAX ACCOUNT #132401-2-085-2006) THAT PORTION OF THE FOLLOWING DESCRIBED PROPERTY IN GOVERNMENT LOT 1, SECTION 13, TOWNSHIP 24 NORTH, RANGE I EAST, W.M., IN KITSAP COUNTY, WASHINGTON, LYING EASTERLY OF MCKENZIE AVENUE MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT N 0057'02" E 773.20 FEET AND S 88026'00" E 142.50 FEET FROM THE SOUTHWEST CORNER OF SAID GOVERNMENT LOT 1; THENCE S 0°57'02" W 120 FEET; THENCE S 88026'00" E TO THE BALANCED GOVERNMENT MEANDER LINE; THENCE NORTHWESTERLY ALONG SAID MEANDER LINE TO A POINT S 88026'00" E FROM THE POINT OF BEGINNING; THENCE N 88°26'00" W TO THE POINT OF BEGINNING; EXCEPT SHELDON BOULEVARD; AND EXCEPT ANY PORTION LYING EASTERLY OF SHELDON BOULEVARD; TOGETHER WITH: LOT 1, BLOCK 2, PARK PLACE ADDITION TO THE CITY OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 30, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT SHELDON BOULEVARD. PARCEL H: (PORTION OF TAX ACCOUNT #132401-2-084-2007) THAT PORTION OF GOVERNMENT LOT 1, SECTION 13, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WEST LINE OF COGEAN AVENUE, 562.16 FEET EAST AND 476.3 FEET NORTH OF THE SOUTHWEST CORNER OF SAID GOVERNMENT LOT 1; RUNNING THENCE WEST 50 FEET; THENCE NORTH TO SOUTHERLY LINE OF SHELDON BOULEVARD; THENCE EASTERLY ALONG SAID SOUTHERLY LINE TO ITS INTERSECTION WITH SAID WEST LINE OF COGEAN AVENUE; THENCE SOUTH ALONG SAID WEST LINE OF COGEAN AVENUE TO THE POINT OF BEGINNING; SITUATE IN KITSAP COUNTY, WASHINGTON; TOGETHER WITH: PARCEL A: THAT PORTION OF GOVERNMENT LOT 1, SECTION 13, TOWNSHIP 24 NORTH, RANGE I EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID GOVERNMENT LOT l; THENCE NORTH 396.30 FEET; THENCE EAST 471 FEET; THENCE NORTH 90 FEET TO A TRUE POINT OF BEGINNING; THENCE EAST 41.16 FEET; THENCE NORTH TO A POINT ON THE SOUTHERLY LINE OF SHELDON BOULEVARD; THENCE NORTHWESTERLY ALONG THE SOUTHERLY LINE OF SHELDON BOULEVARD TO A POINT NORTH OF THE POINT OF BEGINNING; THENCE SOUTH TO THE POINT OF BEGINNING. PARCEL B: THAT PORTION OF GOVERNMENT LOT 1, SECTION 13, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: BEGINNING 485.30 FEET NORTH AND 471 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 1; THENCE NORTH 71.38 FEET TO THE SOUTHERLY MARGIN OF SHELDON BOULEVARD; THENCE FOLLOWING SAID SOUTHERLY MARGIN OF SHELDON BOULEVARD, NORTHWESTERLY 99.46 FEET; THENCE NORTH 38°07' WEST 44.58 FEET; THENCE SOUTH 164.63 FEET; THENCE SOUTH 89°22' EAST 106 FEET TO THE POINT OF BEGINNING; EXCEPT THEREFROM A STREP ALONG THE WEST MARGIN OF THE ABOVE TRACT, 14 FEET WIDE FOR ALLEY; ALSO EXCEPT A TRIANGULAR TRACT IN THE NORTHWEST CORNER OF THE ABOVE TRACT FOR STREET PURPOSES DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE ABOVE DESCRIBED TRACT AND RUNNING SOUTH 38007' EAST 44.58 FEET; THENCE ALONG A 32° CURVE TO THE LEFT 5 FEET; THENCE NORTH 89°22' WEST 30.67 FEET; THENCE NORTH 38.63 FEET TO THE POINT OF BEGINNING. EXCEPT THAT PORTION OF THE ABOVE DESCRIBED PARCELS A AND B CONVEYED TO THE CITY OF BREMERTON FOR SHELDON BOULEVARD PER AUDITOR'S FILE NO. 200711070172. N00'57'31 "E McKE1VZIE A VE. Lo Q NAD 83 1991 cD PARK A VE. 'Q A100 57'54'E n-381.47' AR sE.1. CONSULTANTS INC. P.C. BOX 930 • SILVERDAS, WA. 98363 • ,36CA92-6400 (CIO, DWN BY: Al. O or Clearwater�Sheldon LLC DATE: / R `v2! ,6 JOB No. 4395 fan o 11 cD o cn v w� r' v �1 (b � C, n y �2�3Q Q �+ j Na � ' S p 0- � A p 151 J CDNO1 09'35'! E —eco oc fl cb 176.34' COGEAN AVE. ry N Cb LoL Q Q �:ZE AR sE.1. CONSULTANTS INC. P.C. BOX 930 • SILVERDAS, WA. 98363 • ,36CA92-6400 W Exhibit Ma DWN BY: Al. CHK. BY: ' S. E. O. or Clearwater�Sheldon LLC DATE: / R `v2! ,6 JOB No. 4395 9 1/20/2017 Map Scale: 1: 480 Ktsap County Parcel Search Print Printed- Friday_ ]an 7n 7n1 ** This map is not a substitute for field survey ** 0 20 40R "Comments " t!*� WE IKZRE-� /I + 5 AGENDA BILL CITY OF BREMERTON B13 CITY COUNCIL SUBJECT: Public Hearing and Ordinance Study Session Date: February 8, 2017 No. to Vacate Easements adjacent to COUNCIL MEETING Date: February 13, 2017 3rd Avenue, North of Sunn Fjord Lane Department: PW&U Presenter: Tom Knuckey Phone: 360.473.2376 SUMMARY: The owner of the property has petitioned the City to have utility and road easements vacated; the vacation will allow for development in the area. No street or utility improvements have been constructed in the area of the proposed vacation. ATTACHMENTS: 1. Ordinance No. ; 2. Engineering Staff Report; 3. Legal Description; 4. Site Plan FISCAL IMPACTS (Include Budgeted Amount): None STUDY SESSION AGENDA: oNoPresentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business o Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. to vacate utility and road easements on property located adjacent to 3rd Avenue, north of Sunn Fjord Lane. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, relating to the vacation of easements adjacent to 3rd Avenue, north of Sunn Fjord. WHEREAS, the City has initiated the vacation in accordance with Bremerton Municipal Code (BMC) 11.20.080 in order for development to move forward; and WHEREAS, the City passed Resolution No. 3283 setting a hearing date to consider the vacation of easements, to take public comment or consider written objections to the vacation; and WHEREAS, fewer than fifty percent of the property owners abutting said right- of-way filed written objections to this action prior to the time set for public hearing herein; and WHEREAS, a public hearing was held with proper notice on February 13, 2017, in the City Council Chambers of the Bremerton City Hall to take public comment or consider written objections to the vacation; and WHEREAS, the City Council has determined that it is in the best interest of the public to proceed with the vacation; NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are incorporated as if fully set forth herein. SECTION 2. Vacation of Easements. The easements legally described in Exhibit A and shown on the site plan set forth in Exhibit B, which exhibits are attached and incorporated herein by this reference, are hereby vacated to the abutting property owner subject to the reservation of easements, if any, as applicable. SECTION 3. Vested Rights. No vested rights shall be affected by the provisions of this ordinance. 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 5. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. Vacation of Easements Adjacent to 3rd Avenue, North of Sunn Fjord Lane PASSED by the City Council of the City of Bremerton, Washington this , 2017. Approved this day of APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attorney PUBLISHED the day of EFFECTIVE the day of ORDINANCE NO. day of ERIC YOUNGER, Council President 2017. PATTY LENT, Mayor ATTEST: SHANNON CORIN, City Clerk 2017. 2017 2 Vacation of Easements Adjacent to 3rd Avenue, North of Sunn Fjord Lane RELEASE OF RIGHT-OF-WAY EASEMENTS FOR HIGHLAND VIEW DEVELOPMENT ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE: February 13th, 2017 PREPARED BY: JK SUMMARY A. Applicant: Ronald Templeton (Representative for Kitsap Bank) 3212 NW Byron Street #104 Silverdale, WA 98383 Location: 3rd Avenue North of Sunn Fjord Apartments BACKGROUND On July 9, 1917, a pipeline right-of-way ("utility") easement was granted to the City and on May 27, 1938, a road right-of-way easement was granted to the City on property located adjacent to 3rd Avenue and North of Sunn Fjord Lane. The property owner upon which the right-of-way easements are located has petitioned the City to have a right-of- way easements vacated. The vacations will allow for development in the area. No street or utility improvements have been constructed in the area of the proposed vacation. The owner of the property upon which the right-of-way easements are located has petitioned the City to have the Utility and Roadway Right -of -Way Easements vacated. The Right -of -Way Easements were granted to the City in 1917 and in 1938 per AFN's 88019 and 280750. RIGHT-OF-WAY CONDITIONS EXISTING ROADWAY NEW ROADWAY • Functional Classification • R -O -W Width • R -O -W Areas • Pavement Width • Surface Type • Curb and Gutter • Sidewalks HEARING CONSIDERATIONS 3rd Ave Highland View Page 1 of 3 Undeveloped N/A 40 feet N/A N/A N/A N/A N/A N/A N/A No N/A No N/A BMC 11.20.120 sets forth issues that the City Council needs to determine at the conclusion of the Vacation Hearing. These issues and the staff position are: 1. Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: This portion of the right of way was not dedicated as Public Right of Way. 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: The Right of Way granted to the City is an easement and not intended for public use. 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. 6. Whether objections to the proposed vacation are made by owners of private property abutting the same. Staff Position: The easement provided to the City is encompassed by the owner's property on all sides. SHORELINE ACCESS This portion of right-of-way does not provide shoreline access. UTILITIES The City has no utilities in the proposed area to be vacated. 3rd Ave Highland View Page 2 of 3 SUFFICIENCY OF SIGNATURES The applicant is the sole adjacent property owner. COMPENSATION No compensation owing as this is an easement provided to the City and not Public Right of Way. STAFF RECOMMENDATION Staff recommends Approval to vacate easements as this will enable the 27 lot plat commonly known as Highland View to proceed. 3rd Ave Highland View Page 3 of 3 EXHIBIT "A" LEGAL DESCRIPTION OF EASEMENT AREA TO BE VACATED THE NORTHWESTERLY 40 FEETOF LOT(S) C, AND D OF SHORT PLAT NO.2324 RECORDED UNDER AUDITOR'S FILE NO. 8007210088, BEING A PORTION OF GOVERNMENT LOT 1, SECTION 28, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M.., IN KITSAP COUNTY, WASHINGTON (PTN OF ASSESSOR'S TAX PARCEL NOS. 282401-1-068-2002 AND 282401-1-069- 2001) RELEASE OF EASEMENT- Page 3 of 3 9 w ROAD AND UTILITY EASEMENTS TO BE VACATED SITE PLAN �1 SCALE CITY OF BREMERTON VACATION OF EASEMENTS HORIZ, DEPARTMENT OF PUBLIC WORKS & UTILITIES ADJACENT TO 3RD AVENUE PLOT ENGINEERING DIVISION NORTH OF SUNN FJORD LANE DRAWING N0. DRAWN BY: DESIGN BY: CHECKED BY: DATE I DATE DATE AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Second of two Public Hearings Study Session Date on Amendment No. 1 for a One -Year COUNCIL MEETING Date Extension of Sub -Concession and Department Assignment of Concession Agreement with Presenter: the Olympic Soccer & Sports Center Phone (OSSC), LLC In 0%VA February 8, 2017 February 13, 2017 Parks & Recreation Jeff Elevado (360) 473-5428 SUMMARY: On June 27, 2014, the City entered into a Sub -concession and Assignment of Concession Agreement ("Sub -concession") with Olympic Soccer & Sports Center, LLC ("Olympic") and Keystone Financial Management, Inc. ("Keystone") authorizing Olympic to grant to Keystone a sub -concession of the Concession Agreement upon certain terms and conditions whereby Keystone would acquire all interest in the assets of Olympic in the future including the assignment of the Concession Agreement to Keystone. The term of the Sub -concession will expire on February 28, 2017. Olympic has requested a one (1) year extension to the Sub -concession to allow the parties to finalize financing and the assignment of the Concession Agreement to Keystone. Ownership of the underlying property upon which the improvements are located does not change and will remain with the City. The first public hearing for public comment was held on February 1, 2017. ATTACHMENTS: 1) Amendment No. 1 to Sub -concession and Assignment of Concession Agreement; and 2) Sub -concession and Assignment of the Concession Agreement with Exhibits A & B FISCAL IMPACTS (Include Budgeted Amount): No Fiscal Impact. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda RECOMMENDED MOTION: ❑ General Business o Public Hearing (2 of 2) Move to approve a One -Year Extension to the Sub -Concession and Assignment of Concession Agreement with the Olympic Soccer & Sports Center (OSSC), LLC; 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 01/07/15 AMENDMENT ONE TO SUB -CONCESSION AND ASSIGNMENT OF CONCESSION AGREEMENT THIS AGREEMENT amends the Sub -concession and Assignment of Concession Agreement entered into between the City of Bremerton ("City") and Olympic Soccer & Sports Center, LLC ("Olympic"), to Keystone Financial Management, Inc. ("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 on October 30, 2006 ("Concession Agreement") for use of the property legally described in the Concession Agreement ("Premises") for soccer related activities; and WHEREAS, a Memorandum of First Amended Concession Agreement recorded on December 13, 2006 in the records of Kitsap County under Auditor's File No. 200612130124; and WHEREAS, on June 27, 2014, the City entered into a Sub -concession and Assignment of Concession Agreement ("Sub -concession") with Olympic and Keystone authorizing Olympic to grant to Keystone a sub -concession of the Concession Agreement upon certain terms and conditions whereby Keystone would acquire all interest in the assets of Olympic in the future including the assignment of the Concession Agreement to Keystone; and WHEREAS, the Sub -concession expires February 28, 2017 and Olympic and Keystone have requested an extension of the Sub -concession in order to complete the acquisition of Olympic by Keystone and the assignment of the Concession Agreement; and WHEREAS, the City's consent to an extension of the Sub -concession is required: and WHEREAS, the parties agree to extend the term of the Sub -concession one year; NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration received, the parties agree as follows: A. Term Extended. Section I of the Sub -concession is hereby amended by amending Subsection 2 to read as follows: 2. The term of the Sub -concession shall expire February 28, 2018. B. Other Provisions. All other provisions and terms of the Sub -concession not specifically amended herein shall remain in full force and effect. IN WITNESS WHEREOF, this Agreement is enter into on the date fully executed below. OLYMPIC SOCCER & SPORTS CENTER, LLC Dennis Michael, Member Date: KEYSTONE FINANCIAL MANAGEMENT, INC. William M. Wright, President Date: CITY OF BREMERTON Patty Lent, Mayor Date: STATE OF WASHINGTON COUNTY OF KITSAP In In the City of Bremerton, on the day of , 2017, before me, a Notary Public in and for the above state and county, personally appeared DENNIS MICHAEL, 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) 2 STATE OF WASHINGTON COUNTY OF KITSAP In the City of Bremerton, on the day of , 2017, before me, a Notary Public in and for the above state and county, personally appeared WILLIAM M.WRIGHT, 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) STATE OF WASHINGTON COUNTY OF KITSAP In the City of Bremerton, on the day of , 2017, 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\Amendment 1 to Sub -Concession Agreement.docx SUB -CONCESSION AND ASSIGNMENT OF CONCESSION AGREEMENT "PHIS 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, Inc. ("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 on October 30, 2006 ("Concession Agreement"), attached hereto as Exhibit A, for use of the property legally described in the Concession Agreement ("Premises") for soccer related activities; 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; and 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 Agreement except the right of assignment, and 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. 4. Keystone shall indemnify and hold Olympic harmless from any and all claims, damages, causes of actions, judgments, fees, fines, costs, expenses, and liabilities of whatever nature, including attorney's fees, arising under the Concession Agreement, including any breach or default in the performance of any obligation to be performed under the Concession Agreement, or relating to the Premises in any way 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. During the term of the Sub -concession Agreement, Keystone intends to raise money to acquire all interest in the assets of Olympic, 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, causes of action, judgments, fees, fines, costs, expenses and liabilities of whatever nature, including attorney's fees, arising under the Concession Agreement, including any breach or default in the performance of any obligation to be performed under the Concession Agreement, or relating to the Premises in any way. 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 2 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 further 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. Provided, however, the City shall relieve Olympic of all obligations and liabilities under the Concession Agreement upon Keystone's acquisition of the business and Premises from Olympic and upon approval by the City of a new concession agreement between the City and Keystone. 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 are 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 in duplicate originals on the date fully executed below. O MPIC SOCCER & SPORTS CENTER, LLC By: J)Z!►nIS Mle&4 Its: M,Q,mbff (Notary on next page) STATE OF Q COUNTY OF I In .�rjm&f jj , on the �� day of f"¢ r)l , 2014, before me, a Notary Public in and for the above state and county, personally a peared I nis M1 aej , 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. 1017 NOTARY BLIC My Commission Expires: 11101 1 HEIDI J. ABRAMS NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES NOVEMBER 9, 2017 STATE OF W1t6hIn4fb11 COUNTY OF (SEAL) AGEMENT, INC. In ��A on the day of j4prj , 2014, before me, a Notary Public in and for the above state and county, personally a peared j,�i j � JAAA known to me or proved to be the person named in and who executed the foregoing imrument, 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 PIMLIC FNOTARY JABRAMS My Commission Expires: PUBLIC F WASHINGTON(SEAL) SION EXPIRES BER 9, 2017 4 CITY OF BREMERTO/N awe; Patty L Z7 ayor STATE OF WASHINGTON COUNTY OF KITSAP In�on the day of 2014, 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 ¢ instrument on behalf of said munici corporation. �N M. p�'AyI e7 ; ,� ,,� aR Y •: Z Z PUBLIC My Commission Expires: s� '• �� y �� (SEAL) OF WA`' R \Legal\Legal\Files\Current Active Files\Olympic Soccer\Assignment of Concession Agreement - Keystone\Sub-Concession Agreement-Final.docx 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 security 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. The common address of the Premises is 1199 Union Avenue Bremerton WA, 98312. 1.1.2 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 right-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. 1.2 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 term 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 3.1.2. 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. 3.1.1 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 3.1.4 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.e. June 2006- June 2007). The CPI adjustment shall occur on the following January 1St 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. 3.1.2 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. 3.1.3 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 (ic. June 2002- 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. 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 3.1.4 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. 1.2 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 period -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 arise 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. W1 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 4.1 Use of Premises 4.1.1 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. 4.1.2 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. 4.1.3 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. on 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 janitorial 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 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. 4.7.1 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 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 C 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. 4.10 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 arising 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 Project. 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, joint 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 project, 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 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 furnish 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 arising 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 security 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 terms 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 7.1 Failure to Perform 7.1.1 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 written notice thereof by CITY; or (6) CONCESSIONAIRE shall fail to comply with the same concession term or covenant on three occasions during any 10 year term, 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 right 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 injured by fire, earthquake, or other casualty, then CONCESSIONAIRE shall proceed to rebuild and restore the Premises, or such part thereof as may be injured 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. 7.6.1 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. 8.1.1 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 of joint 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. 8.1.3 No Joint Venture/Partnership. It is mutually understood and agreed that no joint 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: CITY Address City of Bremerton Attn: Director of Parks and Recreation 680 Lebo Boulevard Bremerton, WA 98310 CONCESSIONAIRE Address Olympic Soccer & Sports Center, LLC Attn: Mr. Dennis Michael, Manager P.O. Box 5047 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 in 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 4.1.1. 8.5 Insurance. 8.5.1 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. 8.6.1 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 arising 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 arise 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 arise 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 arising out of this Agreement shall be brought in Kitsap County Superior Court. 8.12 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. 8.14 Change in Law/Renegotiation. The PARTIES agree that changes in federal, state or local laws or regulations that materially modify the terms 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 Majeure. 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 riots, 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 Majeure 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 arising out of this Agreement shall not be deemed waiver of any other right or power. 8.17 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. 8.18 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 attached 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, 3::I(A day of eta , 2006. OLYMPIC SOCCER & SPORTS CENTER, LLC a Washington limited liability company By: Dennis Michael, Manager 23 STATE OF WASHINGTON) ) ss. COUNTY OF KITSAP ) On thik3ntA day of CJcy�fl [jC?� , 2006, before me personally appeared by A to -h to me known to be the n ✓ 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. Given ur<derV,' y Yidn ,y official seal this day of6, 2006. •61� O f� '�U;. Type/Print NmKff Notary Public in and for the �� •• o 2E3L®,t•, = State of Washington residing at?�rAPr n VIP ��F ° • . • 7p �� My Commission expires, 3,,2n 7 0� * *N G CITY OF RRRMV RTON a Washington municipal corporation By: / Cary Bozeman, Mayor APPROVED AS TO FORM: Roger A. Lubovich, City Attorne ATTEST: Paula Jo ston, 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 under d official seal this.3_ day of V. S sION �N OP WA LIST OF EX Type/Print Name "�JA "K, 1-0MA--) Notary Public in and for the State of Washington residing at?--reryler4a VJA My Commission expires 3° a-1- CZ's 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\Files\Current Active Files\Olympic Soccer\Amendment No. 1 - 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°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°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 EXHIBIT B EXHIBIT B 0 0) W m EXHIBIT B EXHIBIT C Value and Compensation 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 CONCESSION SITE VALiTATION June 2001 value for 30,000 square feet ($0.138 per sq. ft. x 30,000) $4,140.00 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 $21,000.00 150 hours of field time valued at $60 per hour = $9,000 Concession value ($21,000) minus field time ($9,000) 1 $12,000 per year monetary Return Address: Attn: City Clerk City of Bremerton 3456 T2 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. Legal Description: ptn NE '/4 SW %4 S21 T24N RIE, W.M., Kitsap County, WA (abbreviated) K 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 I�:�OII:l�r�7 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: CITY OF BREMERTON By: Print Name: Cary Bozeman Its: Mayor DATE: STATE OF WASHINGTON ) ss. COUNTY OF KITSAP CONCESSIONAIRE: OLYMPIC SOCCER & SPORTS CENTER, LLC By: Print Name: Dennis Michael Its: Manager DATE: 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, residing 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 Seal 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, residing at My appointment expires MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 3 Return Address: Attn: City Clerk City of Bremerton 3456 T11 Street, Suite 600 Bremerton, WA 98337 200612130124 BREMER.TON CITY' OF MFj 111111FiPit lOF age I{ 01-15P P dJA AUDITOR/RECORDER'S INDEXING FORM Document Title(s): 1- M?mnrandum 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) E] Additional names on page of document. Legal Description: ptnNE'/4 SW 1/4 S21 T24N RIE, W.M., Kitsap County, WA (abbreviated) 0 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 thg,� day of b ? V , 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 (1 5) 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 - 1 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: CITY OF BREMERTON By: Print Name: Cary Bozeman Its: Mayor DATE: vd-1 3C)T 'g061 , STATE OF WASHINGTON ) : ss. COUNTY OF KITSAP CONCESSIONAIRE: OLYMPIC SOCCER & SPORTS CENTER, LLC By: 1 Print Name: Dennis Michael Its: Manager DATE: CC4-C�Oef- 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 Must Appear Within This Box- cls IN WITNESS WHEREOF, I have hereunto set my hand and official seal this`_" day of �-46_______,2006. /X.,o — �P V. / SwP sIoN 7�I ��� °` C}��•Q '`4 NOTARY PUBLIC, in and for the State of Washington, residing at &e°YV r' n — ® My appointment expires a"l - n 71 OF W MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT - 2 200612130124 Page, 2 of 4 12/13/2OO6 O1:15P EPEMEPTOH CITY OF 11A V,5.0O KitsaP Co, 11A 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 Seal Must Appear Within This Box - IN WITNESS WHEREOF, I have hereunto set my han d official seal this %_31kL day of > , 2006. // f OA v° �&Veoyvl Up T ,� �Nn ' NOTARY PUBLIC, in and for the State��p A n 4> adl,eiY of Washington, residing at }�jV1°Y11�`1�Y1 W M My appointment expires.! III II IIIIII VIII IIID II IIIIIIII III VIII IIII IIII Page! 200612130124t 1 BREMERTON CITY OF M V5.09 KitsaR Ca, A 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 comer 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 89'11'47" E 54.86 feet; thence S 0149'-09" E 113.85 feet; thence S 89°l7'18" 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°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. Cl lull rr} �F nos a �lll�l F 21of 17' 012 �i�;.;,..q3 4 kit an C.'v fiyy�l 1.5P AGENDA BILL CITY OF BREMERTON C 1 CITY COUNCIL SUBJECT: Approve Letter of Agreement with Bremerton Historic Ships Association in the amount of $25,100.00 for the USS Turner Joy Historic Preservation Project Study Session Date: February 8, 2017 COUNCIL MEETING Date: February 13, 2017 Department Executive Presenter: Mayor Lent Phone: (360) 473-5266 SUMMARY: Bremerton Historic Ships Association has fundraised over the last several years to send the Turner Joy into dry dock for needed maintenance. The City is pledging $25,100 towards the $800,000 preservation project. BHSA has raised $350,000.00 towards the project. The Port of Bremerton has funded $100,000 and the State Legislature has funded $300,000 for the project. The City funded $24,900 in 2016 and Administration is asking for $25,100 for 2017 for a total of $50,000 towards the project. ATTACHMENTS: Agreement FISCAL IMPACTS (Include Budgeted Amount): A budget adjustment in the General Fund of $25,100. STUDY SESSION AGENDA: ❑ No Presentation o Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Letter of Agreement with Bremerton Historic Ships Association in the amount of $25,100.00, and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action ,way,,. Patty Lent mayorQ%ci.bremertan.wa. us LETTER OF AGREEMENT 345 6th Street, Suite 600 USS Turner Joy Historic Preservation Project Bremerton, WA 98337-1873 This Letter of Agreement between the City of Bremerton ("City") and Bremerton Historic Ships Association ("BHSA") is for the USS Turner Joy Historic Preservation Project ("Project"). The City agrees to pay BHSA in the amount of $25,100.00 within 30 days of the acceptance and execution of this Letter of Agreement for the Project as described in the scope of work. Scope of Work: 1. Towing USS Turner Joy to and from Lake Union Drydock. 2. Dry-dock the USS Turner Joy at Lake Union Drydock Company. 3. Removal of sea growth with ultra-high pressure washer. 4. Sand blasting of existing coating. 5. Thickness measurement of hull steel in several hundred locations utilizing ultrasonic testing. 6. Application of high strength epoxy coating on hull and up to boot deck (the large sides of the visible hull) on both Port and Starboard sides, Accepted by both parties on of 2017 CITY OF BREMERTON By PgM Lent BREMERTON HISTORIC SHIPS ASSOCIATION M Date Date Hearing scheduled for Harrison hospital relocation plans tad.sooter@kitsapsun.com °T : n. 31,1, , The public can weigh in on plans to relocate Harrison Medical Center's flagship hospital campus from Bremerton to Silverdale during a hearing Feb. 21 in Poulsbo. The hearing is part of a Department of Health review of the certificate of need application for the project. A decision on the certificate of need is expected April 24, according to a public notice. CHI Franciscan Health's $500 million project will consolidate acute care services in Silverdale by 2020. The new Harrison Silverdale campus will provide about 350 inpatient beds, including 24 neonatal beds. The certificate of need hearing is scheduled for 11 a.m. Feb. 21 at Poulsbo City Hall, 200 NE Moe Street. Written comments can be mailed to: Certificate of Need Program, Mail Stop 47852, Olympia, WA 98504-7852, or to karen.nidermayer(cD,doh.wa.gov. Comments must be submitted by Tuesday, February 21. An artist's rendering of the future Harrison Silverdale hospital. (Photo: Contributed) Lori Smith From: Ray Garrido <ray@kitsapiac.org> Sent: Monday, January 30, 2017 3:25 PM To: City Council Subject: A request for support Attachments: Model Community Policing Ordinance.pdf, Welcoming Community Rational.pdf, Model Welcoming City or County Resolution.pdf Dear City Council Members, The Kitsap Immigrant Assistance Center provides a wide range of services, including legal services, to immigrants in our community. Recently communities all over America have been adopting resolutions and ordinances stating their support for diversity in their communities. These resolutions and ordinances help assure residents that their local government is there to protect them and that they can report crimes without endangering themselves. I have attached three documents that we would like you to consider. They may not be in the right format but we wanted to get the idea in front of you for consideration. We would like to present this information at your March 11 council meeting. Please let us know that we will be welcome to do that. would be happy to talk with you about this prior to the meeting. The best way to contact me, other than email is at 360 447-7386. We appreciate your attention to this matter. Peace, Ray Garrido Legal Services Director I BIA Accredited Representative I Board Member Kitsap Immigrant Assistance Center MAIL: PO Box 1276 Bremerton, WA 98337 PHYSICAL: 802 Dr M.L.K. Way Bremerton, WA 98337 (360) 616-0479 Home (360) 447-7386 Cell (253)682-8852 www.kitsapiac.org The Kitsap Immigrant Assistance Center is a 501(c)(3) non-profit that is 100% funded by community contributions. You can support us by donating at the address above or on our website htt www.kitsa iac.or The information contained in this email message may be attorney-client privileged and/or confidential information intended for the use of the named recipient only. You are hereby notified that if this email is not intended for you, any dissemination, distribution, or copying of this communication is prohibited. If you have received this message in error, please immediately notify the sender by replying to this email, or call the sender at 360 616-0479. Receipt of this email does not create an attorney/client relationship. Model Community Policing Ordinance Section Immigrant Status Information A. Unless required by law or court order, no City of officer or employee shall inquire into the immigration status or nationality of any person, or engage in activities designed to ascertain the immigration status or nationality of any person. B. Police Department officers shall not inquire into the immigration status or nationality of any person unless an officer has reasonable grounds to believe the person has been previously deported from the United States, is again present in the United States, and is committing or has committed a felony criminal -law violation. C. The Police Department shall not investigate, arrest, or detain any person based solely on immigration status or nationality. However, the Police Department may honor a detainer request from the United States Immigration and Customs Enforcement ("ICE") authorities to detain an individual for up to 48 hours if ICE states that the individual is an undocumented immigrant who has been convicted of a "violent or serious crime" at any time in the past and has reentered the United States after being deported, or if ICE states the person is a possible match on a United States Department of Homeland Security terrorist watch list. D. The Department shall maintain policies consistent with this section. WELCOMING COMMUNITY – WHY IT'S IMPORTANT STRONGER TOGETHER Our community's success depends on making sure everyone who's a part of it—including immigrants—feels welcome here. Becoming a more welcoming community means more customers for our local businesses, more jobs created by immigrant entrepreneurs, and a thriving economy that benefits us all. By recognizing the contributions that we all make to creating a vibrant culture and a growing economy, we make our neighbors feel more included and our community more welcoming to new Americans and to everyone who calls our community home. INNOVATION Immigrants are innovators: entrepreneurs and small-business owners whose contributions are helping us grow our local economy. Immigrants bring new ideas and a willingness to work hard to see them succeed. They start businesses that bring jobs to our community—and that's good for all of us. We need to welcome everyone with the ingenuity and innovative ideas to help us create a thriving economy. VIBRANT COMMUNITIES Immigrants are a vital part of our community—they bring fresh perspective and new ideas, start businesses and contribute to the vibrant diversity that we all value. Immigrants make a huge contribution to the cultural fabric of our community— making it a place all kinds of people want to come and be a part of. TWENTY-FIRST CENTURY ECONOMY Competing in a twenty-first century economy will require taking full advantage of our most important resource—our people. And that means welcoming the new Americans who are starting businesses, committing to our community, and helping build a stronger local economy. Communities across the country and around the world are in a race to the top to attract the human capital that will allow them to thrive in a global economy. Becoming a more welcoming place for immigrants gives us a leg up in that competition and helps us retain talented people of all backgrounds. Working together to build a twenty-first century economy means making sure everyone who lives here feels welcome and included, no matter where they were born. SHARED VALUES Our community was built by immigrants—hard-working people, our parents and grandparents, who believed in the American Dream. We should welcome those who are following in their footsteps and doing their part to create a thriving community. From those who cook the food that we eat to those who create innovative businesses, new immigrants realize the value of working hard and doing your part to help build a stronger community. When you look at immigrants in our community, you see people who share our values—people working hard to provide for their families and build a stronger economy for all of us. FRIENDLINESS DRAFT Welcoming City/County Resolution A RESOLUTION of the City Council of the City of or Board of Commissioners of the County of , Washington affirming is a welcoming city/county that respects the innate dignity of all people. WHEREAS, all people, including immigrants, are respected and valued and are vital to our shared prosperity; and WHEREAS, Fostering a welcoming environment for all people, regardless of race, religion, ethnicity, or place of origin enhances 's cultural fabric, economic growth, and overall wellbeing and prosperityfor current and future generations; and WHEREAS, has long been recognized as a hospitable and welcoming community where diverse people, families, and institutions thrive and the contributions of all are celebrated and valued; and WHEREAS, is committed to continuing to build a welcoming and neighborly atmosphere in our community, where all are welcomed, accepted, and fully integrated; and WHEREAS, Community efforts that promote understanding and collaboration between our native-born and foreign -born community members are crucial in encouraging and preserving 's welcoming environment; and WHEREAS, encourages our businesses, civic groups, schools, government agencies, and other community institutions to undertake their own initiatives, beyond this resolution, to make a welcoming place for new residents from other countries; NOW, THEREFORE, BE IT RESOLVED, that the City/County of is a Welcoming City/County that embraces all residents and visitors regardless of race, creed, or national origin; strives for unity and harmony in our community; and respects the essential human dignity of all people. Public Works and Utilities Department 100 Oyster Bay Ave. N. • Bremerton, WA 98312 • (360) 473-5315 • FAX (360) 473-5360 MEMORANDUM DATE: February 8, 2017 TO: City Council, Mayor Lent, Chal Martin, PW&U Director FROM: Milenka Hawkins -Bates, Operations / Administrative Manager SUBJECT: February 2017 Storm Update Below is a rough summary of what Street personnel has done so far with regards to the storm; • Street Crews continuously on duty from 8:00pm Sunday 2/5/17 to 4:30pm Wednesday 2/8/17 (three employees from other departments assisted with Snow Shifts) • Equipment Services continuously on duty from 6:30am Monday 2/6/17 to 4:30pm Wednesday 2/8/17 • 300.5 Personnel hours 98.5 of which is overtime (Not complete hours yet, does not include Equipment Services) • 9 People, 2 shifts, 7 pieces of snow removal equipment (six street and three water personnel) • Water and Sewer Departments assisted with tree and limb removal, down wires, road closures • Approx. 7000 gal. salt brine applied • Approx. 120 yards of sand applied • 24 documented sites of damage • Extensive damage to vegetation due to heavy wet snow, lots of cleanup required, list of locations being developed • Extensive damage to streets due to freeze/thaw cycle and snow (lots of potholes) • Minor damage to signs in the ROW • Good performance from equipment, no major breakdowns • Heavy rain expected for the next 48-72 hours, limited sand bags available More to follow when the rest of the paperwork is received and damage can be more accurately assessed. Working for and with our citizens to establish Bremerton as Puget Sound's most beautiful and livable waterfront city! Bremerton Police Department Policy Manual Immigration Violations 428.1 PURPOSE AND SCOPE All individuals, regardless of their immigration status, must feel secure that contacting law enforcement will not make them vulnerable to deportation. Officers should not attempt to determine the immigration status of crime victims and witnesses or take enforcement action against them absent exigent circumstances or reasonable cause to believe that a crime victim or witness is involved in violating criminal laws related to immigration status. Generally, if an officer suspects that a victim or witness is an undocumented immigrant, the officer need not report the person to ICE unless circumstances indicate such reporting is reasonably necessary. Nothing in this policy is intended to restrict officers from exchanging legitimate law enforcement information with any other federal, state or local government entity (Title 8 U.S.C. §1373 and 8 U.S.C. § 1644). The immigration status of individuals alone is generally not a matter for police action. It is incumbent upon all employees of this Department to make a personal commitment to equal enforcement of the law and equal service to the public regardless of immigration status. Confidence in this commitment will increase the effectiveness of the Department in protecting and serving the entire community. 428.2 DEPARTMENT POLICY The U.S. Immigration and Customs Enforcement (ICE) has primary jurisdiction for enforcement of the provisions of Title 8, United States Code (U.S.C.) dealing with illegal entry. When assisting ICE at its specific request, or when suspected criminal violations are discovered as a result of inquiry or investigation based on probable cause originating from activities other than the isolated violations of Title 8, U.S.C., §§ 1304, 1324, 1325 and 1326, this Department may assist in the enforcement of federal immigration laws. It is the policy of this department that we do not ask about immigration status unless it is directly related to the crime being investigated. 428.3 PROCEDURES FOR IMMIGRATION COMPLAINTS Persons wishing to report immigration violations should be referred to the local office of the U.S. Immigration and Customs Enforcement (ICE). The Employer Sanction Unit of ICE has primary jurisdiction for enforcement of Title 8, U.S.C. 428.3.1 BASIS FOR CONTACT Unless immigration status is relevant to another criminal offense or investigation (e.g., harboring, smuggling, terrorism), the fact that an individual is suspected of being an undocumented alien shall not be the sole basis for contact, detention or arrest. 428.3.2 SWEEPS The Bremerton Police Department does not independently conduct sweeps or other concentrated efforts to detain suspected undocumented aliens. When enforcement efforts are increased in a particular area, equal consideration should be given to all suspected violations and not just those affecting a particular race, ethnicity, age, gender, sexual orientation, religion, socioeconomic status or other group. Immigration Violations - 274 Adopted: 2014/021010 1995-2014 Lexipol, LLC Bremerton Police Department Policy Manual Immigration Violations The disposition of each contact (e.g., warning, citation, arrest), while discretionary in each case, should not be affected by such factors as race, ethnicity, age, gender, sexual orientation, religion or socioeconomic status. 428.3.3 ICE REQUEST FOR ASSISTANCE If a specific request is made by ICE or any other federal agency, this Department will provide available support services, such as traffic control or peacekeeping efforts, during the federal operation. Employees of this Department should not participate in such federal operations as part of any detention team unless it is in direct response to a request for assistance on a temporary basis or for officer safety. Any detention by an employee of this Department should be based upon the reasonable belief that an individual is involved in criminal activity. 428.3.4 IDENTIFICATION Whenever any individual is reasonably suspected of a criminal violation (infraction, misdemeanor, or felony), the investigating officer should take reasonable steps to determine the person's identity through valid identification or other reliable sources. If an individual would have otherwise been released for an infraction or misdemeanor on a citation, the person should be given a reasonable opportunity to verify his/her true identity. If the person's identity is thereafter reasonably established, the original citation release should be completed without consideration of immigration status. 428.3.5 ARREST If the officer intends to take enforcement action and the individual is unable to reasonably establish his/her true identity, the officer may take the person into custody on the suspected criminal violation (RCW 10.31.100). 428.3.6 BOOKING If the officer is unable to reasonably establish an arrestee's identity, the individual may be booked into jail for the suspected criminal violation and held for bail. Any person detained for an infraction pursuant to the authority of RCW 46.61.021, may be detained for a reasonable period for the purpose of determining the person's true identity. 428.4 U-VISA/T VISA NONIMMIGRANT STATUS Under certain circumstances, federal law allows temporary immigration benefits to victims and witnesses of certain qualifying crimes (8 USC § 1101(a)(15)(U and T)). A declaration/certification for a U-Visa/T-Visa from the U.S. Citizenship and Immigration Services must be completed on the appropriate U.S. Department of Homeland Security (DHS) Form 1-918 or 1-914 by law enforcement and must include information on how the individual can assist in a criminal investigation or prosecution in order for a U-Visa/T Visa to be issued. Any request for assistance in applying for U-Visa/T-Visa status should be forwarded in a timely manner to the General Investigations Unit sergeant assigned to supervise the handling of any related case. The General Investigations Unit sergeant should do the following: (a) Consult with the assigned detective to determine the current status of any related case and whether further documentation is warranted. Immigration Violations - 275 Adopted: 2014/021010 1995-2014 Lexipol, LLC Bremerton Police Department Policy Manual Immigration Violations (b) Review the instructions for completing the declaration/certification if necessary. Instructions for completing Forms 1-918/1-914 can be found on the U.S. DHS web site at http://www.uscis.gov/portal/site/uscis. (c) Contact the appropriate prosecutor assigned to the case, if applicable, to ensure the declaration/certification has not already been completed and whether a declaration/certification is warranted. (d) Address the request and complete the declaration/certification, if appropriate, in a timely manner. (e) Ensure that any decision to complete or not complete the form is documented in the case file and forwarded to the appropriate prosecutor. Include a copy of any completed certification in the case file. Immigration Violations - 276 Adopted: 2014/02/010 1995-2014 Lexipol, LLC February 2017 Edition y m p p � � � u e • Start the new year off by maximizing the features of your KBA investment! ' As a member of the KBA you are able to take advantage of the National Association of Home Builders'affinity " programs. 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Other types of services through NAHB's Member Advantage include: Concierge Service through Houzz iwww.hauzz.cQu&AHBmembersl; Discounts on uniforms, facility services, and other customized apparel (G&K Services -- www.eMemberBenefits.com/NAHB); you can receive discounts on your shipping through UPS and YRC Freight ; retirement plans and related services from AXA Equitable (www.axa cominsrlrbl: reduced ca rental fees through Hertz, Avis, and Budget; fuel discounts through Asso iated Petroleum Products (www.associatedpetroleum.cominahbl; and morel The easiest way to access the details on all these incredible discounts is by creating your NAHB log inl If you haven't done it, please call the BA to get your NAHB assigned PIN and then go to wwwnahh.ore. On heir home page you will see a way to create your log in. While you can see much of what is on the NAHB site without creating a log in, you will not be able to see the member only content. It only to es a moment to create a log in. Once there, put Member Advantage in the search bar and you're on your way! Members are saving hundreds of dollars each year just through these discounts on services they are already usingl Don't miss out! kpproved Plats are A Community Asset The development of land is a crucial part of the process of commerce, organized growth, and community health and prosperity. While some itizens are on the far left of the matter and take pride that "they got herr'$" and have no interest in the needs, wants, or desires of those that ave come behind them; that is not the belief of the many. Most of our ommtinity takes a more pragmatic view. Though many don't think much bout this, if asked, they would agree that our community needs quality evelopment that can accommodate the housing and commercial business eeds of our growing community. If asked, citizens would generally agree tat they want the future Kitsap to be organized, efficient, beautiful, and a lace to attract the professionals (doctors, teachers, services) that we need live the fulfilling peninsula life style we enjoy. Unfortunately, our elected officials are losing sight of their stewardship. hey are confused about their authority and fearful of any possibility f litigation. More and more we are finding the duly elected individuals -rving on our local municipal and county boards to be unwilling to stand p for the needs of the greater community. Rarely do regular citizens, omeowners, or business owners show up at council meetings to discuss the ay a proposal may improve the community. However, an elite few citizens, ften with a specific, myopic, view will take the time to attend, comment, and protest the activities of builders and developers in and around Kitsap. More concerning is the lack of municipal staff able to see the bigger pictur Often, they are the biggest obstacle; long before the proposal is even given chance to be considered. The result of this broken leadership model is that elected officials, already risk -averse, get a skewed view of what our community thinks and wants. Lacking in strong conviction and misunderstanding why they were elected, and how to serve, they accept a minor view as the prevailing sentiment. They fail to be the leaders the community needs, when they fai to look to the future and to consider the implications of obstruction todaN An important example of how this is playing out is in the skyrocketin cost of housing. The impact of a lack of av ilable units is directly affecting the lives of the poor and the middle class, While the wealthy will always have the resources to meet their personal needs, the middle class, the working poor and the truly impoverished do not have that luxury. The cost of housing is skyrocketing for a variety of reasons, and I wont suggest there is one simple fix. However, I will say that it is a "supply sid,,. problem. That means if we can get more lois into the market, we can g. more houses built. If we can get more houses built the price pressure oil the existing housing stock will be relieved. Relieving that pressure will a in holding back the upward surge of prices. Several years ago a plat was approved by the City of Bremerton. This plat would allow for several hundred homes to be built. When the market collapsed so did the work to develop this plat. With the market retuning and development regulations ever increasing, this plat came ba. to life with a hope of providing hundreds of workforce housing option, in Bremerton. Homes that may have housed shipyard workers, militar members, teachers, doctors, and any other famil� interested in making Kitsap and Bremerton their home. However, even though the plat wa approved before, the,City of Bremerton was unwilling to let the project move forward now. They were unwilling because even though the market collapsed and land use all but stopped from 2008 2010, regulations did not. The regulations around storrnwater have actually been changed t» i since this plat was originally approved. However, stormwater was a part of the previous approval and the protection of our shorelines, neighborin properties, and general environment was very much a consideration. The city invested staff time and resources in approving the plat originally. Therefore they invested taxpayer money to see that an opportunity for more housing in Bremerton could be realized. It wasn't anticipated the plat would stop, or that the market would collapse,'but it was anticipated that the city would have hundreds of new homes for neNN taxpayers to live in. This plat became a community asset. This plat was duly reviewed and after consideration, met the expectations of the city. Unfortunately, the city recently refused to allow this plat to move forwan' So, while the City Council attends seminars about homelessness and the rising cost of housing, they couldn't ste the benefits an already approved plat of hundreds of homes could offer to the housing crisis in their city. Though no everyone could afford a home in this plat, the existence of the plat., would allow for the necessary vacancy of rental units, reducing the pressure on the rental market, offer some balance to return to rental rates reducing thg pressure on rental pricing. This plat would have met an important environmental standard required less work on the part of the city's already overworked staff, given the city crucial tax revenue (million; of dollars), and helped to ease the supply side price escalation of housing in the City. It is unlikely any such opportunity will come to the City of Bremerton in the near future. low 'NI CHI Franciscan Health Our best care. Your best health.' October 28, 2016 Janis Sigman, Manager Certificate of Need Program Department of Health P.O. Box 47852 Olympia, WA 98504-7852 Dear Ms. Sigman: 1717 South J Street P 253.426.4101 PO Box 2197 chifranciscan.org Tacoma, WA 98401 2197 RECEIVED 0o 2 8 7016 CERTIFICA'SE ©1' %Fgg POM3RAM DEPAItSNT OF 41r►+�1H Enclosed please find two copies of CHI Franciscan Harrison Medical Center's certificate of need application proposing to relocate all acute care beds from its Bremerton Campus to its Silverdale Campus in two phases. Upon completion of Phase 1, the Silverdale Campus will operate with 262 licensed beds (including 24 Level II neonatal) with the remaining beds at the Bremerton Campus. Phase 2 will relocate the remaining beds to the Silverdale campus. Also enclosed is the appropriate review and processing fee of $40,470.00. Please feel free to contact me with any questions. Sincerely, Richard Petrich, Vice President, Planning and Business Development St. Anthony Hospital - Gig Harbor St. Francis Hospital - Federai Way Franciscan Medical Croup Harrison HealthPartners St. Clare Hospital - Lakewood St. Joseph Medical Center - Tacoma Harrison Medical Center Highi ine Medical Center - Burien St. Elizabeth Hospital - Enumclaw Ffancscan Foundation Bremerton + Sih�erdale Regional Hospital - Burien IIS d� taPll'� OCT 6 STATE OF WASHINGTON CERTIFICATE OF NEED PROGRAM DEPARTMENT OF HEALTH DEPARTMENT OF HEALTH ' Olympia, Washington 98504 APPLICATION FOR A CERTIFICATE OF NEED Hospital Projects (excluding Sale, Purchase or Lease of a Hospital, Nursing Home Related Projects, and CCRC Related Projects) Certificate of Need applications must be submitted with a fee in accordance with WAC 440-44-030 and the instructions on page 2 of this form. Application is made for a Certificate of Need in accordance with provisions of Chapter 70.38 RCW and Rules and Regulations adopted the Department (WAC 248-19) State of Washington, I hereby certify that the statements made in this application are correct to the best of knowledge and belief. Signature and Title of Responsible Officer Telephone Number: (253) 680-8872 / l 'Al /4 �,: 6 1 Date: October 28, 2016 Richard Petrich, Vice President, Planning and Business Development Legal Name of Applicant: Type of Ownership: ( X ) Non -Profit () Proprietary CHI Franciscan Health System/Harrison ( ) Public Hospital District Medical Center ( ) State/County Address of Applicant: Type of Project: (check all that apply) ( ) New Health Care Facility Harrison Medical Center - Bremerton ( ) Capital expenditure over expenditure minimum 2520 Cherry Avenue ( ) Substantial change in service Bremerton, WA 98310 ( X) Bed capacity change/Redistribution ( ) New Health Service(s) Harrison Medical Center — Silverdale () Pre -development Expenditure 1800 NW Myhre Road () Major Medical Equipment Silverdale, WA 98383 () Other: Intended date of incurring contractual Intended date of undertaking project: obligation to construction, acquire, lease or finance capital asset: Upon certificate of need approval July 2017 Intended date of beginning to offer services or operate completed project: Phase 1: January 2020 and Estimated capital expenditure: Phase 1: Phase 2: January 2023 45 and Phase 2: $201,211,560 A��� Project Summary: AA H ARRA E PORTION OF THE Relocate all acute care beds from Harrison Medical APPLICATION Center's Bremerton campus to its Silverdale campus in two phases. l( CHI Franciscan Health Our best core. row Gest heaft CERTIFICATE OF NEED APPLICATION PROPOSING TO RELOCATE ALL ACUTE CARE BEDS FROM HARRISON MEDICAL CENTER'S BREMERTON CAMPUS TO ITS SILVERDALE CAMPUS October 2016 SECTION 1 Applicant Description A. Legal name(s) of applicant(s). The legal name of the applicant is CHI Franciscan Harrison Medical Center (Harrison). Harrison is a Washington not-for-profit corporation. CHI Franciscan Health System (CHI Franciscan) is the sole corporate member of Harrison. CHI Franciscan is part of Catholic Health Initiatives (CHI), one of the largest not-for- profit health care systems in the United States. CHI does not have direct ownership or management of any facilities in Washington State. B. Address of each applicant. Harrison operates with a single hospital license covering two inpatient campuses. The address of each campus is: Bremerton Campus: 2520 Cherry Avenue Bremerton, WA 98310 Silverdale Campus: 1800 NW Myhre Road Silverdale, WA 98383 C. If an out-of-state corporation, submit proof of registration with Secretary of State, Corporations, Trademarks and Limited Partnerships Division, and a chart showing organizational relationship to any related organizations as defined in Section 405.427 of the Medicare Regulations. This question is not applicable. D. Provide separate listings of each Washington and out-of-state health care facility, including name, address, Medicare provider number, Medicaid provider number, owned and/or managed by each applicant or by a related party, and indicate whether owned or managed. For each out-of-state facility, provide the name, address, telephone number and contact person for the entity responsible for the licensing/survey of each facility. The provider numbers for the hospital are: Medicare: 50-0039 Medicaid: 3303500 In addition to the hospital, Harrison owns and operates a Medicare certified home health agency. The provider numbers for home health are: Medicare: 50-7076 Medicaid: 9008533 Harrison also operates ambulatory campuses in Port Orchard, Belfair and on Bainbridge Island. These campuses provide urgent care, imaging, and primary care. In addition, specialty care is provided at the Port Orchard campus. These campuses are not separately licensed nor do they operate with separate provider numbers. Harrison also operates Harrison Health Partners, which includes locations on Bainbridge Island and in Bremerton, Forks, Poulsbo, Silverdale and Sequim. Information on all of the other facilities owned/operated and/or affiliated with CHI Franciscan is included in Exhibit 1. E. Facility licensure/accreditation status. Harrison is currently licensed for 347 beds. with 253 licensed beds on the Bremerton campus and 94 licensed beds on the Silverdale campus. Eleven (11) of the beds on the Bremerton campus are not operational and were psychiatric beds prior to closing. Harrison is fully accredited by the Joint Commission. Harrison's current accreditation is active through 2019. Harrison is also accredited by American College of Surgeons' Commission on Cancer. F. Is the applicant reimbursed, or plans to be reimbursed, for services under Titles V, XVIII and XIX of the Social Security Act? Harrison is reimbursed for services provided under both Titles XVIII and XIX of the Social Security Act. G. Describe the history of each applicant with respect to criminal convictions related to ownership/operation of health care facility, license revocations and other sanctions described in WAC 248-19-390(5)(a). If there have been no such convictions or sanctions, so state. Neither CHI Franciscan nor Harrison have any history with respect to the criteria described in WAC 248-19-390(5) (a) now codified at WAC 246-310-230(5) (a). SECTION 2 Facility Description A. Name and address of the proposed/existing facility. The addresses for the Harrison inpatient campuses are: Bremerton Campus: 2520 Cherry Avenue Bremerton, WA 98310 Silverdale Campus: 1800 NW Myhre Road Silverdale, WA 98383 B. Name and address of owning entity at completion of project (unless same as applicant). The owning entity is the same as the applicant. C. Provide the following information about the owning entity (unless same as applicant). 1. If out-of-state corporation, submit proof of registration with Secretary of State, Corporations, Trademarks and Limited Partnership Division, and a chart showing organizational relationships to any related organizational relationships to any related organizations as defined in Section 405.427 of the Medicare Regulations. This question is not applicable. 2. If out-of-state partnership, submit proof of registration with Secretary of State, Corporations, Trademarks and Limited Partnership Division, and a chart showing organizational relationships to any related organizations as defined in Section 405.427 of the Medicare Regulations. This question is not applicable. D. Name and address of operating entity (unless same as applicant). The operating entity is the same as the applicant. E. Geographic identity of primary service area. Harrison is located in Kitsap County. Approximately 81% (2015) of Harrison's inpatient discharges are from residents of Kitsap County, making it the primary service area for this project. Harrison's secondary service area includes North Mason, Clallam and Jefferson counties. F. Peer Group. This question is no longer applicable. G. List physician specialties represented on active medical staff and indicate number of active staff per specialty. Harrison's active medical staff includes a total of 333 physicians. A listing of physicians by specialty is included as Exhibit 2. H. List all other generally similar providers currently operating in the primary service area. Harrison is the only non-military acute care hospital located within Kitsap County. I. For existing hospitals, provide: inpatient days/year for the last 5 years total licensed bed capacity at present average number of set-up beds in the last twelve months Table 1 details Harrison's inpatient utilization. Harrison's current licensed bed capacity is 347.1 Table 1 Harrison Medical Center Inpatient Discharges and Days CY2011— 2016 Year Total Patient Discharges Total Patient Days 2012 13,686 55,998 2013 13,024 54,091 2014 13,351 56,764 2015 12,9341 54,323 2016 12,6501 54,724 Source: CHARS, excludes newborns. 2016 annualized based on 6 mos data from applicant. 111 of these beds are reserved for psychiatric use. As such, Harrison has 336 acute care beds. J. If this project involves construction of 12,000 square feet or more, or construction associated with parking for forty or more vehicles, submit a copy or either an Environmental Impact Statement or a Declaration of Non- Significance from the appropriate governmental authority. This project includes more than 12,000 feet of new construction. On June 24, 2015, Harrison received a Mitigated Determination of Non -Significance (SEPA MDNS) from the Kitsap County Department of Community Development. This SEPA MDNS approved a multi -phased development project for the Harrison Silverdale campus. A copy of the SEPA MDNS is included in Exhibit 3. Please note that the Certificate of Need (CN) application is related to Phases 2 and 3 of the SEPA MDNS. The bed numbers identified in the Phases are not an exact match with this application because the project was refined subsequent to the issuance of the SEPA MDNS. Harrison has confirmed with the County that the changes reflected in this application do not require an amendment or any other change to the approved SEPA MDNS. SECTION 3 Project Description A. Describe the proposed project. This description should include discussion of any proposed conversion or renovation of existing space to other purposes, as well as the construction of new facility space. Also specify any unique services being proposed. In November 2008, Harrison submitted a CN application proposing to add 92 beds to its Silverdale Campus. Forty two (42) of the requested 92 beds were to be transferred from the Bremerton campus and the remaining 50 beds were to be new acute care beds, consistent with the Certificate of Need Program's (CN Program) acute care bed need projection methodology. In May 2009, the CN Program approved all 92 beds. In 2011, toward the end of the recession, Harrison submitted an amendment application to reduce the number of new beds to be located at the Silverdale Campus from 92 to 50 and reduce the capital expenditure. On May, 1, 2012, the CN Program approved the amendment and issued CN#1463A. In August, 2013, Franciscan Health Ventures (f/k/a SJMGroup), a corporate member of Franciscan Health System (FHS), became the sole corporate member of Harrison. By August 1, 2013 when the affiliation between FHS and Harrison was completed, the project authorized under CN#1463A was deemed substantially complete by the CN Program and a CN application to formally transfer the CN from Harrison to FHS was submitted in February of 2014, and was approved on July 14, 2014. This application now proposes to relocate additional beds from Bremerton to Silverdale and to, by 2023, consolidate all beds and services onto the Silverdale campus. As far back as the 2008 CN application, Harrison noted that its Bremerton campus was functionally obsolete and located in downtown Bremerton on only 7 acres (compared with the 32 acres at Silverdale). Since at least that time, the goal has been to decant, and ultimately, to consolidate the two campuses into a single campus. This CN application achieves that goal. The Bremerton campus opened in 1965. The West wing was added in 1970 and various other additions occurred over the period of 1978-2002. Today, the "newest" inpatient rooms at Bremerton are 32 years old, and 60% of the inpatient beds are semi -private. An analysis commissioned by CHI Franciscan concluded that an investment, of about $212 million was needed at Bremerton to maintain current operations at that campus. However, even with that investment, two campuses are not efficient and investment well beyond the $212 million would be needed to keep pace with demand, technology and service development. Once consolidated in 2023, operating cost reductions associated with improved efficiencies and operating a single campus are currently estimated at more than $9 million annually. Importantly and per CHARS, more than three-quarters of the patients admitted to a Harrison location (Bremerton or Silverdale) reside equidistant or closer to the Silverdale Campus. As such, Silverdale is not only newer, and not only has the space for growth; it is also either as accessible or more accessible to the majority of our patients. Today, as depicted in Table 2, the Bremerton campus has 242 non -neonatal acute care beds and the Silverdale campus has 70 acute care beds out of its total licensed bed capacity of 347. This project, in Phase 1, proposes to construct a 9 story tower that will house acute care beds, an emergency department, a cancer center, diagnostic imaging, and ancillary and support services (pharmacy, laboratory, central supply, etc.). Phase 1 will relocate 168 acute care beds to Silverdale by January 1, 2020 (144 beds in a new tower and 24 beds in the existing hospital). Phase 2, which will relocate the remaining 74 beds, includes the construction of a second new tower and will open by 2023. At the completion of Phase 1, Silverdale will operate with 238 acute care beds and 24 neonatal beds (for a total of 262 beds). Phase 2 will have a total of 312 acute care beds and 24 neonatal beds, for a total of 336 beds. At the completion of Phase 2, the Bremerton campus will close and at that time, Harrison's licensed capacity will be 336 beds.' No new services or beds are proposed as a result of this project. Table 2 details the current configuration of beds by service and campus currently, as well as at the completion of each Phase. 2 Harrison will give up its 11 psychiatric beds at the end of Phase 2. Table 2 Current and Proposed Bed Configuration by Campus Campus Current Bed Configuration(January Phase 1 2020(January Phase 2 202 Silverdale OB 20 20 20 ICU 0 48 48 Med/Surg 50 170 244 Subtotal - Acute 70 238 312 Level II ICN 24 24 24 Sub -Total Silverdale 94 262 336 Bremerton OB 0 0 0 ICU 20 0 0 Med/Surg 222 74 0 Subtotal - Bremerton 242 74 0 Total Acute Care 336 336 336 Psych 11 11 0 Total 347 347 336 Source: Applicant The cost for the CN portion of Phase 1 is $283 million and for Phase 2 is $201 million; bringing the total CN expenditure to $484 million. The Phase 1 CN project costs include the beds/nursing units as well as allocated costs for the ancillary service space additions (surgical suites, emergency department, lab, x-ray, etc.) that are needed to support the relocated beds. Other non -CN reviewable costs include outpatient and ancillary and support services that will be relocated to the new tower. These Phase 1 costs, which are approximately $194 million are appropriately not included in the CN project, but are included in the pro forma financial. CHI Franciscan has studied this proposal exhaustively and has engaged the community at numerous levels. CHI Franciscan is confident that this project is the best option, and that the capital costs of the investment will be recouped through significantly enhanced operating efficiencies; especially those recouped after the closure of the Bremerton campus in early January 2023. 10 B. Type of Project (indicate all that apply). 1. New Facility or Service 2. Total Replacement of Existing Facility 3. Renovation or Modernization 4. Mandatory Correction of Fire and Life/Safety Deficiencies 5. Substantial Change in Services 6. Expansion/Reduction of Facility 7. Pre -Development Expenditure in Excess of Minimum 8. X Other: Relocation of beds C. If the proposed project involves the purchase of an existing service, identify the present owner(s) of that service. This application does not involve the purchase of any existing service. As such, this question is not applicable. D. Describe any changes in licensed and/or set-up bed capacity by unit/service which are part of this project. This application reduces Harrison's licensed bed capacity from 347 to 336. It also changes the bed capacity at each campus. Details regarding the current and proposed bed capacity by campus were provided in Table 2. E. Total estimated capital expenditures. The total capital expenditure by Phase is detailed in Table 3: Table 3 Harrison Medical Center Capital Expenditures by Phase Phase CN Reviewable Non -CN Reviewable Total Phase 1 $283,479,146 $194,538,754 $478,017,900 Phase 2 $201,211,560 $0 $201,211,560 Total $484,690,706 $194,538,754 $679,229,460 Source: Applicant F. Total estimated additional facility -wide operating expense for the first and second years of operation (separately shown). Projected total operating expenses (in `000s) by year and phase are detailed in Table 4.: Table 4 Harrison Medical Center Total Operating Expenses by Year and Phase in `0005 Year Phase Total Operating Expenses 2020 1 $433,230 2021 1 $431,180 2022 1 $431,911 2023 2 $438,164 2024 2 $444,229 2025 2 $449,230 Source: Applicant G. General description of types of patients to be served by the project. Describe the extent of any planned limitations to the services offered, either during the initial years of the project or on a permanent basis. As noted earlier no change in bed type is proposed by this project. The beds to be relocated from Bremerton to Silverdale are acute care beds. Even though we are foregoing the 11 psychiatric beds at the end of Phase 2, these beds have not been operational since 2009. 12 H. Projected utilization of service(s) for the first three years of operation following project completion (shown separately). This should be expressed in appropriate workload unit measures (for hospitals, as required in the Accounting and Reporting Manual for Hospitals of the Hospital Commission). RW measures should also be expressed in procedures units. Projected patient days, by phase and campus are detailed in Table 5: Table 5 Harrison Medical Center Projected Patient Days by Phase Source: Applicant I. If applicable, include a copy of the functional program. No functional program was prepared. J. Existing sources of patient revenue (Medicare, etc.) with anticipated percentage of revenue of each source. Harrison's existing sources of revenue, by payer are: Medicare: 52% Medicaid: Patient Days Commercial: Year Phase Bremerton Campus Silverdale Campus Total 2020 1 14,585 47,163 61,748 2021 1 14,920 48,247 63,167 2022 1 15,267 49,370 64,637 2023 2 - 66,160 66,160 2024 2 - 67,739 67,739 2025 2 - 69,044 69,044 Source: Applicant I. If applicable, include a copy of the functional program. No functional program was prepared. J. Existing sources of patient revenue (Medicare, etc.) with anticipated percentage of revenue of each source. Harrison's existing sources of revenue, by payer are: Medicare: 52% Medicaid: 19% Commercial: 23% Other: 6% Total 100% 13 K. Source(s) of financing. This CN project will be financed from a combination of existing reserves and debt financing (debt financing will be $145 million). L. Equipment proposed: 1. Description of new and replacement equipment proposed. A listing of the new equipment, for both phases, is included in Exhibit 4. 2. Description of equipment to be replaced, including cost of the equipment and salvage value, if any, or disposal or use of the equipment to be replaced. The equipment proposed for Phase 1 is expected to be a combination of new and used equipment (with the vast majority expected to be new equipment). The "used" equipment will be relocated from Bremerton. Phase 2 equipment will be all new equipment. M. Single line drawings at least approximately to scale of current locations which identify current departments and services. Single line drawings of the existing Silverdale campus are included in Exhibit 5. N. Single line drawings at least approximately to scale of proposed locations which identify proposed services and departments. Single line drawings of the proposed Silverdale campus, for both phases, are included in Exhibit 5. In addition, Exhibit 5 also includes the line drawings at the Bremerton campus that will house the 74 beds upon completion of Phase 1. 14 O. Geographic location of site of proposed project, if other than hospital campus. 1. Indicate the number of acres in the site. Harrison's Bremerton Campus contains 7.46 acres and the Silverdale Campus is approximately 32 acres. 2. Indicate the number of acres in any alternate site, if applicable. No alternate site is proposed for this project. Therefore, this question is not applicable. 3. Indicate if the primary site or alternate site has been acquired, if applicable. No alternate site is proposed for this project. Therefore, this question is not applicable. 4. Address of site. The addresses for Harrison's two campuses are as follows: Bremerton Campus: 2520 Cherry Avenue Bremerton, WA 98310 Silverdale Campus: 1800 NW Myhre Road Silverdale, WA 98383 15 5. If the primary site or alternate site has not been acquired, explain how you will select and acquire a site for the proposed project. This question is not applicable. 6. Describe any of the following which would currently restrict usage of the proposed site and/or alternate site for the proposed project: (a) mortgages; (b) liens; (c) assessments; (d) mineral or mining rights; (e) restrictive clauses in the instrument of conveyance; (f) easements and right of ways; (g) building restrictions; (h) water and sewage access (i) probability of flooding; (j) special use restrictions; (k) existence of access roads; (1) access to power and/or electricity sources; (m) shoreline managementlenvironmental impact; (n) others, please explain. The Silverdale Campus is already licensed for hospital use. The SEPA MDNS, included in Exhibit 3, allows for the expansion requested in this CN application. 7. Provide documentation that the proposed site may be used for the proposed project. Include a letter from any appropriate municipal authority indicating that the site for the proposed project is properly zoned for the anticipated use and scope of the project or a written explanation of why the proposed project is exempt. The Silverdale Campus is already licensed for hospital use. The SEPA MDNS, included in Exhibit 3, allows for the expansion requested in this CN application. 16 8. Provide documentation that the applicant has sufficient interest in the site or facility proposed. Sufficient interest shall mean one of the following: a. clear legal title to the proposed site; or b. lease for at least five years with options to renew for to less than a total of twenty years in the case of a hospital, psychiatric hospital, tuberculosis hospital, or rehabilitation facilities; or c. lease for at least one year with options to renew for not less than a total of five years in the case of freestanding kidney dialysis units, ambulatory surgical facilities, hospices, or home health agencies; or d. legally enforceable agreement to give such title or such lease in the event that a Certificate of Need is issued for the proposed project. Harrison is the legal owner of the Silverdale site. The tax parcel ID # is 162501-4-102- 2007. Included in Exhibit 6 is information from the Kitsap County Assessor's Office documenting Harrison's ownership. P. Space Requirements. 1. Existing gross square footage. The buildings on the Silverdale Campus, comprise 129,602 square feet. The buildings on the Bremerton Campus currently comprise approximately 430,889 square feet. The total square footage is 560,491. 2. Total gross square footage for proposed new addition. The total gross square footage for the proposed bed expansion for the Silverdale campus is 545,743 (with 353,873 for the acute care beds) for Phase 1 and 127,980 for Phase 2. Total square footage of the Silverdale campus will be 803,325. 3. Provide a matrix showing net square feet for all involved services and departments before and after project completion. Table 6 details the bed configuration for Harrison by campus and by phase. 17 Table 6 Bed Confieuration by Phase and Camuus3 Service/ Location Campus Location Beds Square Ft Current Phase 1 Phase 2 Final Current Phase 1 Phase 2 Final Current Phase 1 Phase 2 Final ICU BC Lvl G - - - 20 0 0 0 9,265 0 0 0 SC NA LvI 4 & 5 Lvl 4 & 5 Lvl 4 & 5 0 48 48 48 0 57,782 57,782 57,782 Med/Surg BC 2 2 - - 1 113 20 0 0 46,455 21,910 - - BC 3 3 - - 79 34 0 0 31,745 21,395 - BC 4 4 - - 30 20 0 0 13,700 13,700 - SC Lv12 & 3 Lv12 & 3 Lv12 & 3 Lv12 & 3 50 74 74 74 53,502 53,502 53,502 53,502 SC Lv16-8 Lvl 6-8 Lvl6-8 Lv16-8 0 96 96 96 - 86,673 86,673 86,673 SC _ _ Lvl 4-6, Tower 2 LvI4-6, Tower 2 0 0 74 74 - - 70,005 70,005 Subtotal 292 292 292 292 154,667 254,962 255,739 255,739 OB SC Lvl2 (S) Lv12 (S) Lvl 2 (S) Lvl 2 (S) 20 20 20 20 18,734 18,734 18,734 18,734 Level II Nursery SC Lvl 2 (S) Lvl 2 (S) Lvl 2 (S) Lvl 2 (S) 24 24 24 24 included in OB SF Total 336 336 336 336 173,401 273,696 1 286,696 286,696 Source: Applicant 3 Bremerton Campus =BC. Silverdale Campus =SC 4. Do the above responses include any shelled -in areas? There are no shelled spaces with the current plan. Q. Proposed Timetables for Project Implementation Table 7 details the proposed timeline for the two -phased project. Table 7 Timetable for Project Implementation )FYnancin : Phase 1 Phase 2 a. Date for obtaining construction NA July 2020 financing: b. Date for obtaining permanent NA July 2020 financing: c. Date for obtaining funds necessary July 2017 July 2020 to undertake theproject: Design: Date for completion and submittal to Consultation and Construction May 2017 February 2020 Review Section of preliminary drawings: Date for completion and submittal to Consultation and Construction August 2017 May 2020 Review Section of fmal drawings andspecifications: Construction: Date for construction contract June 2017 June 2020 award: Date for 25 percent completion of June 2018 June 2021 construction: Date for 50 percent completion of February 2019 March 2022 construction: Date for 75 percent completion of June 2019 July 2022 construction: Date for completion of construction: October 2019 October 2022 Date for obtaining licensure December 2019 December 2022 approval: Date for occupancy/offering of January 2020 January 2023 service(s): Source: Applicant 39 R. As the applicant(s) for this project, describe your experience and expertise in the planning, developing, financing and construction of this type of project. CHI Franciscan has provided compassionate, quality health care to the residents of South King and Pierce Counties and surrounding communities for more than 125 years. As a mission -driven organization, CHI Franciscan has displayed a continuing commitment to outreach and to development of quality services accessible to the people it is intended to serve. CHI Franciscan has proven experience and expertise in planning, developing, financing, and constructing new health care facilities — including, the 80 -bed St. Anthony Hospital in Gig Harbor. Further, in 2007, FHS assumed ownership of Enumclaw Regional Hospital and completed construction on a 90,000 square foot replacement Critical Access Hospital that opened in 2011. On behalf of CHI, CHI Franciscan also oversaw the construction of a replacement Critical Access Hospital (St. Anthony Hospital) in 2013 in Pendleton, Oregon. In addition to the hospital new construction or replacement projects cited above, over the past decade, CHI Franciscan has developed, financed, and constructed two dialysis facilities, two ambulatory surgery centers, three sleep labs, five medical office buildings, several 50,000-120,000 square -foot outpatient centers, and an inpatient hospice care center. Our most recent facility, Franciscan Medical Pavilion — Highline is a 48,000 square foot medical office building that boasts a serene, patient -centered environment with leading edge technology. It features walk-in urgent care, primary care, digital X-ray, lab services and comprehensive women's care, including 3D mammography, breast biopsy and bone density exams. CHI Franciscan has also had regular and ongoing facility projects at each of its hospital campuses. CHI Franciscan experience and expertise has ensured that these projects are responsive to the community's needs and are financially viable. As the above demonstrates, CHI Franciscan has the proven ability to effectively manage resources, and to provide services that are responsive to community need. Prior to developing this application, CHI Franciscan closely evaluated both the Bremerton and Silverdale campuses and determined that consolidating services at Silverdale (which has capacity to expand) would better meet community need and produce operational cost savings. 20 S. Describe the relationship of this project to the applicant(s)' long-range plan and long-range financial plan (if any). CHI Franciscan's mission, in part, is to emphasize human dignity and social justice as it moves toward the creation of healthier communities. Our vision is to be the South Sound's first choice for the healing of mind, body and spirit. One of the main ways this is achieved is by providing access to quality services close to the people they are intended to serve. 21 SECTION 5 Financial Feasibility 1. All applicable estimated capital costs (actual or replacement costs if a conversion project). Table 11 details the capital cost for the project by Phase. Table 11 Harrison Medical Center Estimated Capital Expenditure, by Phase4 Source: Applicant 4 There are also non -CN capital costs ($194,538,754 in Phase 1). These costs are for projects that are not reviewable. The depreciation expense associated with these costs are included in the `with' scenario. There is no interest expense, as Phase 1 is being funded from reserves. 31 Phase 1 Phase 2 Total a. Land Purchase $0 $0 $0 b. Land Improvements $1,600,000 $0 $1,600,000 c. Building Purchase $0 $0 $0 d. Residual Value of Assets Being Replaced $0 $0 $0 e. Building Construction $184,106,488 $118,800,000 $302,906,488 f. Moveable Equipment $20,800,000 $20,849,400 $41,649,400 g. Fixed Equipment $32,000,000 $32,610,600 $64,610,600 h. Architect & Engineering Fees $17,010,895 $9,504,000 $26,514,895 i. Consulting Fees $2,400,000 $1,306,800 $3,706,800 Site Preparation $0 $0 $0 k. Supervision and Inspection $1,380,799 $ $1,380,799 1. Costs Associated with Financing to Include Interim Interest $0 $0 $0 M. Cost of Financing to Include Interim Interest during construction n. Sales Tax: $ _ Building Construction $16,017,264 $ 11,404,800 $27,422,064 Moveable Equipment $4,576,200 $5,132,160 $9,708,360 o. Other Project Costs: $ - Permits and Fees $2,737,500 $1,485,000 $4,222,500 Signage $850,000 $118,800 $968,800 P . Total Estimated Capital Costs $283,479,146 $201211560 $484,690,706 Source: Applicant 4 There are also non -CN capital costs ($194,538,754 in Phase 1). These costs are for projects that are not reviewable. The depreciation expense associated with these costs are included in the `with' scenario. There is no interest expense, as Phase 1 is being funded from reserves. 31 2. Provide a copy of a signed nonbinding contractor's estimate of the project's construction cost, movable equipment, fixed equipment, consulting fees, site preparation, and supervision and inspection of site (Items e,f,g,ij, and k, above). A copy of the nonbinding contractor letter will be submitted with the request for supplemental information. 3. For each service (cost center) provide, gross square feet to be impacted by construction, and estimated cost for items e, f, g, i, j, and k above. Separately indicate net square feet for each service (cost center). Reference appropriate recognized space planning guidelines you have employed in your space allocation activities. The total of e, f, g, i, j, and k above is $240,687,287 for Phase 1 and $175,566,800 for Phase 2. Table 12 details the requested information for the proposed project. Table 12 Capital Cost Information Phase Total GSF5 Construction Cost/SF Total Cost/SF Cost/Bed 1 353,365 $681.13 $802.23 $1,968,605 2 127,980 $1,356.20 $1,572.21 $2,719,075 Total 481,345 r $860.621 $1,006.95 1 $2,223,352 Source: Applicant 4. For an existing facility, indicate the increase in capital costs per patient day that would result from this project using the chart below. The incremental interest and depreciation expenses associated with the proposed project are detailed in Table 13. ' 5 Total GSF include square footage directly related to the transfer of beds from Bremerton to Silverdale. 32 Table 13 Incremental Depreciation and Interest Expense Source: Applicant 5. Anticipated sources and amounts of financing for the project (actual sources for conversions). CHI Franciscan, together with CHI, have elected to use a combination of its reserves and debt ($145 million) for the financing of this project. The entirety of Phase 1 will be funded through CHI Franciscan reserves. Phase 2 includes both reserves and debt. 6. For projects to be totally or partially funded from capital allowance, please indicate the amount(s) of capital allowance and budget year(s) during which the funds would be used. This question is not applicable. 7. Indicate the anticipated interest rate on the construction loan: No debt is associated with Phase 1. The Phase 2 debt, which will not be incurred until 2020 is preliminarily estimated at 4.75%. 8. Indicate if you will have a fixed or a variable interest rate on the long-term loan and indicate the rate of interest. The assumed interest rate is fixed at 4.75% and the term is 20 years. 33 2020 2021 2022 2023 2024 2025 Incremental Depreciation Expense 10,786 10,786 10,786 22,587 22,587 22,587 Incremental Interest Expense 2,427 4,973 7,399 7,485 7,246 6,996 Incremental Interest Expense - capitalized (2,427) (4,973) (7,399) 0 0 0 Total incremental Capital Expense 10,786 10,786 10,786 30,072 29,833 29,583 Patient Days 61,748 63,167 1 64,637 1 66,160 67,739 69,044 Incremental Capital Expense/PPD 1 174.68 1 170.75 1 166.87 1 454.53 440.41 428.47 Source: Applicant 5. Anticipated sources and amounts of financing for the project (actual sources for conversions). CHI Franciscan, together with CHI, have elected to use a combination of its reserves and debt ($145 million) for the financing of this project. The entirety of Phase 1 will be funded through CHI Franciscan reserves. Phase 2 includes both reserves and debt. 6. For projects to be totally or partially funded from capital allowance, please indicate the amount(s) of capital allowance and budget year(s) during which the funds would be used. This question is not applicable. 7. Indicate the anticipated interest rate on the construction loan: No debt is associated with Phase 1. The Phase 2 debt, which will not be incurred until 2020 is preliminarily estimated at 4.75%. 8. Indicate if you will have a fixed or a variable interest rate on the long-term loan and indicate the rate of interest. The assumed interest rate is fixed at 4.75% and the term is 20 years. 33 9. Estimated Start-up and Initial Operating Expenses a. Total Estimated Start-up costs. (Expenses incurred prior to opening such as staff training, inventory, etc., reimbursed in accordance with Medicare guidelines for start- up costs.) Harrison is an existing operation. No start up period is anticipated. b. Estimated Period of Time Necessary for Initial Start-up. (Period of time after construction completed, but prior to receipt of patients.) Harrison is an existing operation. No start up period is anticipated. c. Total Estimated Initial Operating Deficits (Operating deficits occurring during initial operating period.) Harrison is an existing operation. No operating deficit is anticipated. d. Estimated initial operating period (Period of time from receipt of first patient until total revenues equal total expenses.) Harrison is an existing operation. No operating deficit is anticipated. 34 10. Evidence of Availability of Financing for the Project Please submit the following: 1. Copies of letter(s) from lending institutions which indicate a willingness to finance the proposed project (both construction and permanent financing). The letter(s) should include. i. Status of loan application(s) ii. Purpose of the loan(s) iii. Proposed interest rate(s) (Fixed or Variable) iv. Proposed term (period) of the loan(s) V. Proposed amount of loan(s) vi. Verification that the lender has examined the financial position of the borrower and found it to be adequate to support the proposal. The examination should reflect other project activity, actual or proposed, that might relate to this specific proposal. Included in Exhibit 9 is a letter from Nick Barto, CHI Senior Vice President, Corporate Finance and Investments regarding the commitment to fund the proposed project through a combination of reserves and debt financing. As noted above, $145 million in debt financing has been assumed for Phase 2 of the project. b. Copies of letter(s) from the appropriate source(s) indicating the availability of financing for the initial start-up costs. The letter(s) should include the same items requested in 5(a) above, as applicable. No start- up costs are projected for this project. Therefore, this question is not applicable. c. Copies of each lease or rental agreement related to the proposed project. This project does not require any lease or rental agreements. As such, this question is not applicable. 35 d. Amortization schedule(s) for each financing arrangement including long- term, and any short- term start-up or initial operating deficit loans, setting forth the: a. Principle b. Term (number of payment periods) (long-term loans may be annualized) c. Interest d. Outstanding balance at end of each payment period An amortization schedule is included in Exhibit 10. 11. Provide a cost comparison analysis, including a discussion of the advantages and costs, of each of the following alternative financing methods: purchase, lease, Capital Allowance, board -designated reserves, interfund loan, and commercial loan. Provide rationale for choosing the financing method selected. Based upon a review of CHI Franciscan's reserves, coupled with advice from our parent corporation, CHI, it was decided to finance the two -phased project at a level of approximately 30% debt and 70% financial reserves. 12. Cost center budgets anticipated revenue, and operating costs for the period from the current fiscal year through and including three full fiscal years following completion of the project, without inflation, with and without the project. In the "with" scenario, include start-up costs, and the anticipated period of deficit operations before the project is utilized at the break-even point. Pro forma financials are included in Exhibit 11. tro 13. Provide a pro forma balance sheet without inflation, with and without the project. However, if there are no capital costs associated with this project, no pro forma balance sheets are necessary. If the project to be totally funded from hospital reserves or capital allowance, a pro forma balance with the project is sufficient. Submit these statements for the period from the current fiscal year through and including three full fiscal years following completion of the project. Provide a narrative of the assumptions used in preparing these statements. Explain any extraordinary changes in financial position. Exhibit 11 contains a copy of the requested pro forma financials. 14. Provide a capital expenditure budget covering each year starting with the first year following the last State Hospital Commission budget submittal up through the third year following completion of the project. This question is not applicable. 15. The expected sources of revenues for the applicant(s) total operations (e.g., Medicaid, Medicare, Blue Cross, Labor and Industries, etc.) with anticipated percentage of revenue from each source. No changes to the anticipated sources of revenue by payer are expected as a result of this project. Revenue by payer is projected at: Medicare: 52% Medicaid: 19% Commercial: 23% Other: 6% Total 100% 16. Provide a copy of the latest State Hospital Commission approved rate sheet. This question is no longer applicable. 37 17. Provide the complete audited year-end financial reports for the last three full fiscal years. These should include balance sheets, expense and revenue statements, statements of changes in financial position, and the accompanying notes. Appendix 1 contains the requested financial reports. 18. The relationship of the project, if any, to the appropriate cost sections of the State Health Plan, regional health council health systems plan or annual implementation plan should be documented. Neither the State Health Plan nor the Health Systems Plan are currently in effect. 19. Indicate the reduction or addition of FTEs with the salaries, wages, and employee benefits for each FTE affected. Table 14 details the incremental FTEs needed for the proposed project and the average salaries and wages associated with these positions. 38 Table 14 Harrison Medical Center Incremental Staffing by Year, 2020-2025 Source: Applicant 39 Actual 2016 2020 2021 Incremental Staffinm 2022 2023 2024 2025 Total 2025 Nursing 546.0 80.0 17.7 18.6 18.4 19.4 15.5 715.6 Management 27.0 1.0 0.0 0.0 1.0 0.0 0.0 27.0 RN 332.7 50.3 11.3 11.9 12.4 12.4 10.0 441.0 LPN 11.1 1.7 0.4 0.4 0.4 0.4 0.3 14.7 Patient Care Asst 151.4 23.4 5.2 5.4 5.7 5.7 4.5 201.3 Tech/Prof 8.1 1.2 0.3 0.3 0.3 0.3 0.2 10.7 Svc/Support 15.7 2.4 0.5 0.6 0.6 0.6 0.5 20.9 Ancillary/Support 1106.0 110.0 24.3 25.4 42.4 26.6 21.5 1,271.4 Management 78.0 1.0 0.0 0.0 9.0 0.0 70.0 RN 228.7 34.3 7.8 8.2 3.5 8.5 6.9 297.9 LPN 26.4 4.1 0.9 0.9 0.0 1.0 0.8 34.1 Patient Care Asst 213.1 30.7 7.3 7.6 2.0 8.0 6.4 271.1 Tech/Prof 244.1 31.7 7.3 7.7 5.9 8.1 6.4 299.4 Svc/Support 315.7 8.2 1.0 1.0 29.0 1.0 1.0 298.9 Total FTEs 1652.0 190.0 42.0 44.0 24.0 46.0 37.0 1,987.0 Salaries & Wages $122,017 $14,033 $3,103 $3,249 $1,741 $3,366 $2,733 $146,760 Employee Benefits $32,404 $3,734 $824 $863 $468 $893 $726 $38,976 S&W & Benefits $154,421 $17,767 $3,927 $4,112 $2,209 $4,259 $3,459 $185,736 S&W & Benefits/FTE `000's $93.5 $93.5 $93.5 $93.5 1 $92.0 $92.6 1 $93.5 $93.5 Source: Applicant 39