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Home My WebLink About12/20/2017 AGENDA PACKETCITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 - Phone (360) 473-5280 DECEMBER 20, 2017 CITY COUNCIL MEETING AGENDA 1. BRIEFING: 5:00 — 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. Review of Agenda B. General Council Business (As necessary...) 2. CALL TO ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS A. Pledge of Allegiance B. Invocation 3. POLICE DEPARTMENT OATH OF OFFICE & AWARDS CEREMONY A. Swearing In for Department Promotion: Beau Ayers to Corporal B. Swearing In for New Officers: Ryan M. Avery; Ross Guiney; and Jared France C. Recognition of Volunteers: Tom Danaher; Betty Maples; Ka tee Meade; Sarah Rivers; Joe Weigel; and Katherine Weigel 4. MAYOR'S REPORT A. Mayor's Neighborhood Improvement Awards — By Joseph Sexton, Community Resource Unit 5. BREMERTON POLICE DEPARTMENT BRIEFING 6. PUBLIC RECOGNITION 7. CONSENT AGENDA A. Claims & Check Register B. Minutes of Meeting — November 15, 2017 C. Minutes of Special Meeting — November 20, 2017 D. Minutes of Study Session — December 13, 2017 E. Confirm Appointment of Kelsie Donleycott to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee F. Confirm Appointment of Jay Montgomery to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee G. Collective Bargaining Agreement with the Bremerton Police Officers' Guild H. Interagency Agreement (IAA18659) with the State of Washington Administration Office of the Courts for Acceptance of Interpreter Grant I. Agreement with Kitsap County for Incarceration of City Prisoners J. Ordinance No. 5343 amending Titles 2, 3, and 5 of the Bremerton Municipal Code relating to the transfer of the Tax and License Division from the Department of Financial Services to the Department of Community Development Continued on back... K. Ordinance No. 5344 amending Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" relating to Business & Occupation (B&O) Taxes L. Subscriber Agreement with the Washington Multi -City Business License & Tax Portal Agency (FileLocal); and 2018 Budget Amendment M. 2018 Property Insurance Renewal with American Home Assurance Company N. Claims Administration Agreement with Eberle Vivian, Inc. for Self Insured Worker's Compensation Claims O. Intergovernmental Cooperative Purchasing Agreement with the Public Procurement Authority for Fire Department Purchases P. Purchase of replacement Fire Hose for the Fire Department from Curtis of Kent, WA Q. Change Order No. 4 with Johansen Excavating, Inc. for the Lebo Boulevard Project R. Resolution No. 3299 authorizing the transfer of the Oyster Bay Public Works Facility from General Fund to the Water Utility Fund S. Lease Agreement with Alexander Cart Rentals, Inc. for Gold Mountain Golf Course Cart Pad 8. GENERAL BUSINESS A. Ordinance No. 5342 establishing the City of Bremerton's 2017 Budget Amendments 9. COUNCIL MEMBER REPORTS 10. COUNCIL AWARDS CEREMONY - By Council President Eric Younger 11. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING ® Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations please contact the City Clerk at (360) 473-5323 at least 24 hours prior to the meeting. SUBJECT: Claims & Check Register SUMMARY: AGENDA BILL CITY OF BREMERTON CITY COUNCIL Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 7A N/A December 20, 2017 Financial Services Shannon Corin 473-5323 Approval of the following checks and electronic fund transfers: 1) Check #'s 376349 through 376882 and EFT's 17967 through 18072 in the amount of $8,064,837.19. 2) Regular Payroll for the pay period ending November 15, 2017 in the amount of $812,758.03. 3) Regular Payroll for the pay period ending November 15, 2017 in the amount of $206.92. 4) Regular Payroll for the pay period ending November 30, 2017 in the amount of $797,004.32. 5) Retiree Payroll for the pay period ending November 30, 2017 in the amount of $49,507.09. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: x❑ No Presentation ❑ Full Presentation STUDY SESSION ACTION: 0 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the consent agenda as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action SUBJECT: Minutes of Meeting — November 15, 2017 AGENDA BILL CITY OF BREMERTON 7B CITY COUNCIL Study Session Date: N/A COUNCIL MEETING Date: December 20, 2017 Department: City Council Presenter: Council President Phone: (360)473-5280 SUMMARY: Attached is the summary of the City Council Meeting on November 15, 2017. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: o Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny Form Updated 12/15/15 ❑ Table ❑ Continue ❑ No Action DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, November 15, 2017 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, November 15, 2017, at 5:00 PM in Council Conference Room 603 of the NORM DICKS GOVERNMENT CENTER, 345 6t" Street, Bremerton, Washington, with Council President Eric Younger presiding. Council Members present were Richard Huddy, Dino Davis, Greg Wheeler, Jerry McDonald, Leslie Daugs, and Pat Sullivan. Also present were City Attorney Roger Lubovich; City Clerk Shannon Corin; Legislative Assistant Lori Smith; and Hans Nilsson, Information Services. A COUNCIL BRIEFING was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. The Pledge of Allegiance was led by Council Member Pat Sullivan followed by the Invocation provided by Deacon Bill Hamlin of Our Lady Star of the Sea Church. MAYOR'S REPORT — Mayor Lent... • Proclaimed the Month of November 2017 as Human Rights Month; and then presented the proclamation to Alicia Valencia and Shandace Schaefer; • The Kitsap County Conference for Human Rights will be held on Friday, December 15 from 8:30 to 4:00 PM at Olympic College featuring a program "Historical Perspectives and Moving Forward"; • Mentioned that Kitsap Legal Services will be accepting walk-in intakes on Monday, Wednesday, and Friday from 1:00 to 4:00 PM at 920 Park Avenue; and • Thanked the Council for the 8 years she has been Mayor and for all of the accomplishments made in that time; and • Wished everyone a Happy Thanksgiving. PUBLIC RECOGNITION Faye Flemister provided an update on the Marvin Williams Center, adding that a Grand Opening Celebration is planned during the month of February. To support completion of the project, she encouraged the purchase of a commemorative brick at www.bricksrus.com. Mike Walton, Community Relations Coordinator for the Bremerton YMCA, provided an update on events and activities this month at the "Y". CONSENT AGENDA 5A— Claims & Check Register: Check Numbers 376150 through 376348 and EFT -17913 through EFT -17966 in the amount of $3,663,323.66; Regular Payroll for the pay period ending October 31, 2017 in the amount of $797,665.30; and Regular Payroll (Pay Out & Correction) for the pay period ending October 31, 2017 in the amount of $8,686.48 5113— Minutes of Meeting — November 1, 2017 5C — Minutes of Budget Workshop — November 2, 2017 5D— Minutes of Budget Workshop — November 6, 2017 5E— Minutes of Study Session — November 8, 2017 5F — Minutes of Budget Workshop — November 9, 2017 5G — Designation of Dennis Treger, CPA to the Audit Committee 5H — Professional Services Agreement with Systems Design West, LLC for Billing and Payment Processing of EMS Patient Transport Services City Council Reg. Mtg. Minutes Wednesday, November 15, 2017 Page 2 of 6 51— Bremerton Kitsap Access Television (BKAT) Service Contract with the City of Bainbridge Island (5-Year) 5J — Bremerton Kitsap Access Television (BKAT) Service Contract Interlocal Agreement with Kitsap County (3-Year) 5K— Acceptance of the Municipal Water Quality Stormwater Capacity Building Grant from the Washington State Department of Ecology for 2017-2019 5L— Professional Services Agreement with BHC Consultants for the Sewage Pump Station CW-4 Upgrade and OF-12 Modifications Project 5M — Contract Modification Agreement No. 3 with Parametrix for Groundwater Monitoring at the former Chevron Property Remediation 5N — Professional Services Agreement with IDAX Data Solutions for Intersection Turning Movement Counts and Travel Time Data Collection 50— Ordinance No. 5337 amending Ordinance Nos. 4875, 5226, and 5287 to extend the Puget Sound Energy Franchise Agreement 5P— Reimbursement Agreement with Avamere Health Services for Combined Sewer Upsize 5Q — Interlocal Agreement with Mason County for Public Works Services to Design the Sanitary Sewer System Extension within the Belfair UGA and Puget Sound Industrial Center—Bremerton 5R— Moved under General Business as Item 7F... President Younger thanked Dennis Treger for his longstanding service to the City of Bremerton. 05:52:38 M/S/C/U (Huddy/Daugs) Move to approve the CONSENT AGENDA as presented. PUBLIC HEARINGS 6A — PUBLIC HEARING AND ORDINANCE NO. 5338 ADOPTING THE 2017 COMPREHENSIVE PLAN AMENDMENT DOCKET; AND AMENDING THE CITY'S OFFICIAL ZONING MAP: Allison Satter, Senior Planner, explained that the action before the Council is to conduct a public hearing and consider the 2017 Comprehensive Plan Amendment Docket. The amendment docket contains both comprehensive plan text and map changes and are summarized as follows: 1) Adding policies to include efforts for distressed areas and areas with disadvantaged populations; 2) Refine descriptions and boundary of the Downtown Regional Center to further include the military installations and facilities; 3) Correct mapping error for 0.5 parcel on Werner Road to apply Industrial land use and zoning designations; and 4) Minor updates to the Gorst Subarea Plan President Younger opened the public hearing... With no comments received, President Younger closed the Hearing to the public, and opened for discussion with the Council... 06:01:22 Motion was made by Huddy and seconded by McDonald... Questions and comments were provided by Huddy, Wheeler, and Daugs; with responses provided by Ms. Satter... 06:05:58 (Huddy/McDonald) Move to pass Ordinance No. 5338 adopting amendments to the Comprehensive Plan Text Official Land Use Map, and official Zoning Map. City Council Reg. Mtg. Minutes Wednesday, November 15, 2017 Page 3 of 6 6B — PUBLIC HEARING ON REVENUE SOURCES FOR PROPOSED FY -2018 CITY OF BREMERTON BUDGET (PUBLIC COMMENT ONLY — NO ACTION): DeWavne Pitts, Financial Services Director stated that tonight's public hearing is to take comments on the revenue sources for the 2018 Proposed Budget. The proposed budget anticipates property and EMS levy increases of the full 1 % allowed by law, leaves utility tax rates unchanged, but changes the allocation of storm water taxes to certain funds. The proposed budget also adjusts for the annual $20,000 increase to the B&O tax exemption rate, incorporates utility rate increases and includes inter -fund transfers between funds where appropriate. Overall, the revenue projections throughout all funds remain conservative. President Younger opened the public hearing... With no comments received, President Younger closed the Hearing to the public; and announced that action will be taken under General Business Item A (Ordinance No. 5339); Item 7B (Resolution No. 3297); and Item 7C (Ordinance No. 5340). 6C — (1 of 2) PUBLIC HEARING ON THE PROPOSED FY -2018 CITY OF BREMERTON BUDGET (PUBLIC COMMENT ONLY — NO ACTION): DeWavne Pitts, Financial Services Director, stated that tonight's public hearing is to take comments on the 2018 Proposed Budget. Budget Workshops were held on November 2, 6 and 9 where an overview of the Mayor's proposed budget was presented to Council. Public comments will be taken into consideration before Council adopts a final ordinance. President Younger opened the public hearing... With no comments received, President Younger closed the Hearing to the public; and announced the final public hearing will take place at the Special Meeting scheduled on Monday, November 20 at 5:00 PM. GENERAL BUSINESS 7A — ORDINANCE NO. 5339 LEVYING PROPERTY TAXES FOR COLLECTION IN 2018: DeWavne Pitts, Financial Services Director explained that Cities over 10,000 in population are allowed to raise their annual property tax collection by either 1 % or the amount of the July Implicit Price Deflator (IPD), whichever is lower. This year, the IPD was 1.553 %. As presented during the public hearing earlier this evening, the City is requesting the full 1 % increase to our general property tax levy over the prior year's collection, as allowed by law. This increase, along with the amounts anticipated for new construction, has been included in the 2018 Proposed Budget. In addition, we are also requesting the full 1 % increase to the EMS levy. The EMS amount anticipated in the 2018 Proposed Budget includes this amount. RCW 84.52.020 requires all taxing districts to "certify to the county legislative authority, for the purpose of levying district taxes... the amounts to be raised" by property taxes. RCW 84.55.120 requires that the certification includes the enabling tax ordinance setting the property tax rate. These documents must be submitted to the county by November 30, 2017. There were no comments or questions by members of the public... 06:25:13 Motion was made by Sullivan, and seconded by Huddy... Comments were provided by Sullivan... 06:25:55 M/S/C/U (Sullivan/Huddy) Move to pass Ordinance No. 5339 establishing the amount to be collected in 2018 by taxation on the assessed valuation of taxable property within the City limits of Bremerton and setting the property levy rate. 7B — RESOLUTION NO. 3297 RE-ESTABLISHING AND AMENDING CITY RATES AND FEES FOR 2018: DeWavne Pitts, Financial Services Director, stated that each year, as part of the budget process, the various City departments review their charges, rates and fees for services and make recommendations on any changes needed. The attached includes recommended changes to fees charged by the various departments. City Council Reg. Mtg. Minutes Wednesday, November 15, 2017 Page 4of6 There were no comments or questions by members of the public 06:26:53 Motion was made by Daugs, and seconded by Sullivan... Questions and comments were provided by Daugs, and Sullivan; with responses provided by Ms. Corin... 06:29:17 M/S/C/U (Daugs/Sullivan) Move to adopt Resolution No. 3297 re-establishing and amending City Rates & Fees for 2018. 7C — ORDINANCE NO. 5340 AMENDING AND RE-ESTABLISHING UTILITY ASSESSMENTS, RATES, FEES, AND CHARGES FOR 2018: DeWayne Pitts, Financial Services Director stated that the proposed ordinance would amend and re-establish the 2018 Utility Assessments, Rates, Fees, and Charges. There were no comments or questions by members of the public... 06:30:00 Motion was made by Huddy, and seconded by Sullivan... Questions and comments were provided by Huddy, Sullivan, Daugs, Davis, and Wheeler; with responses provided by Public Works & Utilities Director Chal Martin and Financial Analyst Caroline Tompson... 06:46:05 M/S/C/U (Huddy/Sullivan) Move to pass Ordinance No. 5340 amending and re- establishing the 2018 Assessments, Rates, Fees, and Charges for Water, Wastewater, Storm Water, and other related services. 7D — PROFESSIONAL SERVICES AGREEMENT WITH IMS INFRASTRUCTURE MANAGEMENT SERVICES, LLC. FOR PAVEMENT MANAGEMENT PROGRAM AND SIDEWALK CONDITION ASSESSMENT: Tom Knuckey, City Engineer mentioned that staff advertised a Request for Statement of Qualifications to assess the condition of the City's roadways and sidewalks in support of the City's Pavement Management Program. Data collected from these assessments will be used to inform and assist in the prioritization of improvements for both the City's ADA Transition Plan, along with maintenance, preservation and capital improvements for residential, collector and arterial streets. This data is necessary to quantify necessary work along with maintaining the City's eligibility for preservations grants going forward. As identified in Exhibit A, the work will be authorized in phases, with 2017 authorization for the sidewalk assessment (maximum expenditure of $60,000), and the pavement assessment (balance contract) authorized in 2018. There were no comments or questions by members of the public... 06:50:08 Motion was made by Davis, and seconded by Daugs ...Questions and comments were provided by Davis, Sullivan, Daugs, and Huddy; with responses provided by Mr. Knuckey... 07:00:45 M/S/C/U (Davis/Daugs) Move to approve the Professional Services Agreement with IMS Infrastructure Management Services not to exceed $120,995.00 for the Pavement Management Program and Sidewalk Condition Assessment; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. 7E — LOCAL AGENCY AGREEMENT WITH THE WASHINGTON STATE DEPARTMENT OF TRANSPORTATION FOR THE KITSAP LAKE ELEMENTARY SAFE ROUTES TO SCHOOL PROJECT: Tom Knuckey, City Engineer, explained that the City has been awarded a $1,754,348 Safe Routes to Schools grant to design and construct sidewalks along Harlow Drive from Carr Boulevard to Kitsap Way. The sidewalks are generally 10 -ft wide along the west side of the roadway. The total project cost is $1,764,348; the City's cost is $10,000. The grant is in WSDOT standard form (Project Prospectus and Local Agency Agreement or LAA) with their standard terms and conditions. The LAA for design is attached; the LAA for construction will be received upon WSDOT approval of the design. City Council Reg. Mtg. Minutes Wednesday, November 15, 2017 Page 5 of 6 There were no comments or questions by members of the public 07:02:50 Motion was made by Daugs, and seconded by McDonald... Questions and comments were provided by Daugs, Sullivan, Wheeler, and Younger; with responses provided by Mr. Knuckey... 07:12:30 M/S/C/U (Daugs/McDonald) Move to approve Local Agency Agreements with the Washington State Department of Transportation for the Kitsap Lake Elementary Safe Routes to Schools Project; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. 7F — RESOLUTION NO. 3298 DECLARING AN EMERGENCY TO STABILIZE THE EASTPARK STORM WATER OUTFALL: Ned Lever, Managing Engineer, explained that the East Park Storm Water Outfall Reconstruction Project was completed in September of 2017. The work included removing beach armoring and placement of beach gravels to restore the beach. Recent rains have caused significant erosion, which is jeopardizing an existing sewer main and the storm water outfall itself. Public Works has applied for emergency permits from the Army Corps of Engineers, WDFW, and the DNR. This Resolution declares the emergency conditions, and authorizes the Mayor and the Mayor's designee to execute the necessary contracts to expedite the stabilization of the beach and protect the sewer main and storm water outfall. There were no comments or questions by members of the public... 07:14:39 Motion was made by Davis, and seconded by Daugs... Questions and comments were provided by Daugs, Sullivan, and McDonald; with responses provided by Mr. Lever... 07:15:00 Friendly Amendment to Main Motion was made by McDonald, and seconded by Davis... 07:16:45 AMENDING-M/S/C/U (McDonald/Davis) Move to add to Section 3 — The Mayor and the Mayor's designee are authorized to enter into the necessary public works contracts to address the emergency at the East Park Storm Water Outfall in the amount not to exceed $200,000 for all contracts. 07:26:56 MAIN-M/S/C/U (Davis/Daugs) Move to approve Resolution No. 3298 declaring an Emergency to stabilize the East Park Storm Water Outfall, as amended. COUNCIL MEMBER REPORTS Richard Huddy thanked all candidates who ran in the recent race, and congratulated the winners; attended the One -Year Anniversary of Kitsap Play Land; the Grand Re -Opening for Daniel Judd Farmers Insurance Agency; the Veterans Day "Honoring All Those Who Served" Ceremony; and the 242nd Birthday Celebration for the United State Marine Corps; and expressed his disappointment in the Washington State decision to grant approval to CHI's Certificate of Need to relocate the Harrison Medical Center from Bremerton to Silverdale. Dino Davis welcomed volunteers to the next Forest Ridge Park Clean -Up event on Saturday, November 18 at 9:00 AM; mentioned the last Clean -Up of the year would be on December 16; enjoyed a recent ride -along with a Bremerton Police Officer; and also thanked all BPD Officers for their service. Greg Wheeler invited volunteers to the last Kiwanis Park Work Party of 2017 on Saturday, November 25 from 9:00 to 11:00 AM; acknowledged the efforts of City employees who come out during storms and inclement weather to keep us all safe; and on behalf of he and his wife Sunny, wished everyone a Happy Thanksgiving. City Council Reg. Mtg. Minutes Wednesday, November 15, 2017 Page 6 of 6 Jerry McDonald shared construction progress photos of the 1010 Apartment Project, Marvin Williams Community Center, and the Roxy Theatre Renovation; and encouraged the community to attend "Magic in Manette" and First Friday Artwalk events on Friday, December 1; and "Winterfest' in downtown Bremerton on Saturday, December 2; and wished everyone a Happy Thanksgiving. Leslie Daugs acknowledged the Boy Scouts in attendance tonight; announced the 96th Anniversary Dinner and Dance Fundraiser for the Filipino -American Association on Saturday, November 18 beginning at 7:00 PM at the Filipino -American Community Center; volunteers are needed for the Kitsap Community Resources Christmas Angel Program; and encouraged attendance at the League of Women Voters "Where are you Sleeping" event also on November 18 from 10:00 AM to 3:00 PM in the Eagles Nest at the Kitsap County Fairgrounds; thanked Veterans for their service and for their families for their support; and encouraged everyone to drive safely over the holiday season. Pat Sullivan acknowledged the volunteers who helped at Lions Park Beach Clean -Ups this past year; shared photos of their kids enjoying the new playground equipment at Lions Park while the parents volunteered; and looked forward to future clean-ups, which are expected to start up again in February 2018. President Younger announced that there will be a Special Meeting held on Monday, November 20 beginning at 5:00 PM to approve the City of Bremerton's FY -2018 Budget. With no further business, President Younger adjourned the Council Meeting at 7:47 PM Prepared and Submitted by: LORI SMITH Legislative Assistant APPROVED by the City Council on the 201h day of December, 2017. ERIC YOUNGER, City Council President ATTEST: SHANNON CORIN, City Clerk EY:SC:ls:cg SUBJECT: Minutes of Special Meeting — November 20, 2017 AGENDA BILL CITY OF BREMERTON 7C CITY COUNCIL Study Session Date: N/A COUNCIL MEETING Date: December 20, 2017 Department: City Council Presenter: Council President Phone: (360)473-5280 SUMMARY: Attached is the summary of the City Council Special Meeting on November 20, 2017. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: o Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny Form Updated 12/15/15 ❑ Table ❑ Continue ❑ No Action DIGITAL RECORDING CITY COUNCIL SPECIAL MEETING MINUTES Monday, November 20, 2017 A Special Meeting of the City Council of the City of Bremerton was called to order Monday, November 20, 2017, at 5:00 PM in Council Conference Room 603 of the NORM DICKS GOVERNMENT CENTER, 345 6t" Street, Bremerton, Washington, with Council President Eric Younger presiding. Council Members present were Richard Huddy, Dino Davis, Greg Wheeler, Jerry McDonald, Leslie Daugs, and Pat Sullivan. Also present were City Attorney Roger Lubovich; City Clerk Shannon Corin; Council Assistant Christine Grenier; and Hans Nilsson, Information Services. A COUNCIL BRIEFING was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. The Pledge of Allegiance was led by Council Member Pat Sullivan. PUBLIC HEARING 3A — PUBLIC HEARING AND ORDINANCE NO. 5341 TO ADOPT THE CITY OF BREMERTON FY -2018 BUDGET: DeWayne Pitts, Financial Services Director, explained that this is the final public hearing for the 2018 Proposed Budget. Budget workshops were held on November 2, 6, and 9 where an overview of the Mayor's proposed budget was presented to the Council. This budget incorporates changes made by Council during budget workshop deliberations. This is the second of two public hearings on the budget. The first public hearing was held on November 15, 2017. President Younger opened the public hearing... Comments in support of economic development were provided by Brian Nelson. With no further comments received, President Younger closed the Hearing to the public; and opened for discussion with the Council... 05:37:12 Main Motion was made by Sullivan and seconded by Huddy... Comments were provided by Sullivan, Huddy, Daugs, McDonald, Younger, Wheeler, and Davis... 05:47:05 Amending Motion was made by McDonald and seconded by Huddy... Comments were provided by McDonald, Huddy, Daugs, Sullivan, Davis, Wheeler, and Younger... 05:52:27 AMENDING-M/S/F (McDonald/Huddy) Move to amend the 2018 Budget to fund an Economic Development Consultant for 6 months to be funded in the amount of $55,000. Funding for the consulting services will be transferred from the General Fund Reserves to the Non -Departmental General Fund. Voted in Favor of Amending Motion: McDonald, Huddy Voted Opposed to Amending Motion: Sullivan, Daugs, Wheeler, Davis, Younger Amending Motion failed: 2 -Yes; 5 -No 05:56:09 MAIN-M/S/C (Sullivan/Huddy) Move to pass Ordinance No. 5341 approving and adopting the budget for the City of Bremerton for the Fiscal Year 2018, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. Voted in Favor of Main Motion: Daugs, Wheeler, Huddy, Sullivan, Younger Voted Opposed to Main Motion: McDonald, Davis Main Motion carried: 5 -Yes; 2 -No City Council Special Mtg. Minutes Monday, November 20, 2017 Page 2 of 2 President Younger announced that applications to fill the vacant District 4 Council Seat will be accepted until Friday, January 5, 2018; there are no City Council Meetings during the next 3 weeks (November 22 or 29 and December 6); the next televised Council Meeting will be on Wednesday, December 20; the public is invited to attend the Swearing In -Ceremony for new Council Members and Mayor on Wednesday, December 27; and lastly, a 15 -minute Executive Session to discuss Potential Litigation under RCW 42.30.110(1)(i) with no action anticipated. The Executive Session was extended by 10 -minutes from 6:12 PM to 6:22 PM. With no further business, President Younger adjourned the Council Meeting at 6:23 PM. Prepared and Submitted by: CHRISTINE GRENIER Council Assistant APPROVED by the City Council on the 201h day of December, 2017. ERIC YOUNGER, City Council President ATTEST: SHANNON CORIN, City Clerk EY:SC:ls:cg SUBJECT: Minutes of Study Session — December 13, 2017 AGENDA BILL � D CITY OF BREMERTON CITY COUNCIL Study Session Date: N/A COUNCIL MEETING Date: December 20, 2017 Department: City Council Presenter: Council President Phone: (360)473-5280 SUMMARY: Attached is the summary of the City Council Study Session on December 13, 2017. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: o Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny Form Updated 12/15/15 ❑ Table ❑ Continue ❑ No Action DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES Wednesday, December 13, 2017 A Study Session of the City Council of the City of Bremerton was called to order in the Council Conference Room of the NORM DICKS GOVERNMENT CENTER, 345 6t" Street, Bremerton, Washington, Wednesday, December 13, 2017, at 5:00 PM, with Council President Eric Younger presiding. Council Members present were Richard Huddy, Dino Davis, Greg Wheeler, and Jerry McDonald, Leslie Daugs, and Pat Sullivan. Also present was Legislative Assistant Lori Smith. President Younger emphasized that the Study Session was open to the public but there would be no opportunities for input or participation except when deemed appropriate; and the content of these items is subject to change. It was further announced that the other items approved by the Council will be placed on the December 20, 2017 Council Meeting Agenda or as indicated. A. LIMITED PRESENTATION PLANNED — The following items are budgeted items orsubjects that have been raised with the appropriate Council Committee Members: 1. Confirm Appointment of Dino Davis to the Planning Commission January 10 Study Session 2. Confirm Appointment of Kelsie Donleycott to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee Consent Agenda 3. Confirm Appointment of Jay Montgomery to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee Consent Agenda 4. Collective Bargaining Agreement with the Bremerton Police Officers' Guild Consent Agenda 5. Interagency Agreement (IAA 18659) with the State of Washington Administration Office of the Courts for Acceptance of Interpreter Grant Consent Agenda 6. Agreement with Kitsap County for Incarceration of City Prisoners Consent Agenda 7. Ordinance amending Titles 2, 3, and 5 of the Bremerton Municipal Code relating to the transfer of the Tax & License Division from the Department of Financial Services to the Department of Community Development ConsentAgenda 8. Ordinance amending Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" relating to Business & Occupation (B&O) Taxes Consent Agenda 9. Subscriber Agreement with the Washington State Multi -City Business License & Tax Portal Agency (FileLocal); and 2018 Budget Amendment Consent Agenda 10. 2018 Property Insurance Renewal with American Home Assurance Company Consent Agenda 11. Claims Administration Agreement with Eberle Vivian, Inc. for Self -Insured Worker's Compensation Claims Consent Agenda 12. Intergovernmental Cooperative Purchasing Agreement with the Public Procurement Authority for Fire Department Purchases Consent Agenda 13. Purchase of replacement Fire Hose for the Fire Department from Curtis of Kent, WA Consent Agenda 14. Change Order No. 4 with Johansen Excavating, Inc. for the Lebo Boulevard Project Consent Agenda 15. Ordinance establishing the City of Bremerton's 2017 Budget Amendments General Business 16. Resolution authorizing the transfer of the Oyster Bay Public Works Facility from the General Fund to the Water Utility Fund Consent Agenda City Council Study Session Minutes Wednesday, December 13, 2017 Page 2 of 2 B. BRIEFINGS & FULL PRESENTATIONS 1. Lease Agreement with Alexander Cart Rentals, Inc. for Gold Mountain Golf Course Cart Pad Consent Agenda 2. Review of 2018 Rates and Fees "Parking Fees" Information Only At approx. 6:35 PM, Council Member Davis left the Council Meeting and did not return... C. GENERAL COUNCIL BUSINESS o Public Works Committee Briefing (12/05/17 Meeting) — Vice Chair Jerry McDonald o Public Safety & Parks Committee Briefing (12113/17 Meeting) — Chair Leslie Daugs o Other General Council Business was discussed; including a declaration by Leslie Daugs and Eric Younger that they are interested in running for 2018 Council President; and Richard Huddy is interested in running for 2018 Vice President. D. EXECUTIVE SESSION President Younger announced a 25 -minute Executive Session starting at 7:20 PM to consider the Minimum Price of Real Estate under RCW 42.30.110(1)(c); and a Briefing on (2) Potential Litigation Items under RCW 42.30.110(1)(i) At 7:45 PM, President Younger extended the Executive Session for 30 -minutes for a total of 55 minutes, and concluded at 8:15 PM... There were no comments from the public... 08:18:00 M/S/C/U (Sullivan/McDonald) Move to authorize the City Attorney's Office and the Risk Management Specialist to negotiate resolution of three claims resulting from a sewer main blockage on October 18, 2017 at or near Juniper Street in Bremerton, WA in a total amount not to exceed $125,000 without further authorization. President Younger adjourned the Council Study Session at 8:20 PM. Prepared and Submitted by: LORI SMITH, Legislative Assistant APPROVED by the City Council on the 20th day of December, 2017. Eric Younger, Council President ATTEST: Shannon L. Corin, City Clerk EY: SC:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Kelsie Donleycott to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 7E December 13, 2017 December 20, 2017 Executive Mayor Lent (360) 473-5266 SUMMARY: The Mayor is seeking confirmation of the appointment of Kelsie Donleycott to the BKAT Citizens Advisory Committee as the City of Bremerton Representative. Kelsie is applying to fill the seat that will be vacated by Milenka Hawkins -Bates. It is a one year position from January through December 2018. ATTACHMENTS: Application to the Committee is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Kelsie Donleycott to the BKAT Citizens Advisory Committee for a one year term. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Jay Montgomery to the Bremerton Kitsap Access Television (BKAT) Citizens Advisory Committee Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 7F December 13, 2017 December 20, 2017 Executive Mayor Lent (360) 473-5266 SUMMARY: The Mayor is seeking confirmation of the appointment of Jay Montgomery to the BKAT Citizens Advisory Committee as the Education Representative. Jay is applying to fill the seat that will be vacated by Kyle Meager who is now a community representative. It is a one year position from January through December 2018. ATTACHMENTS: Application to the Committee is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Jay Montgomery to the BKAT Citizens Advisory Committee for a one year term. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action AGENDA BILL CITY OF BREMERTON 7G CITY COUNCIL SUBJECT: Collective Bargaining Study Session Date: December 13, 2017 Agreement with the Bremerton Police COUNCIL MEETING Date: December 20, 2017 Officers' Guild Department: Legal/Human Resources Presenter: Phone: Charlotte Nelson (360) 473-5926 SUMMARY: Pursuant to RCW 41.56, negotiations have concluded between representatives of the City and the Bremerton Police Officers' Guild (BPOG) resulting in the attached Collective Bargaining Agreement for 2018 through 2020. The agreement includes a 3% wage adjustment for 2018, a 2.5% for 2019, and a 2.5% for 2020. The Collective Bargaining Agreement has been ratified by the BPOG membership. Council approval is required to implement this agreement. ATTACHMENTS: Collective Bargaining Agreement between the City of Bremerton and the Bremerton Police Officer's Guild FISCAL IMPACTS (Include Budgeted Amount): The projected additional cost of implementing this three year Collective Bargaining Agreement is approximately $1,098,198. The funds for 2018 are included in the recently approved budget. STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Collective Bargaining Agreement with the Bremerton Police Officers' Guild for 2018 through 2020; and further authorize the Mayor to finalize and execute the Collective Bargaining Agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action COLLECTIVE BARGAINING AGREEMENT By and Between THE CITY OF BREMERTON and BREMER TON POLICE OFFICERS' GUILD January 1, 2018 through December 31, 2020 TABLE OF CONTENTS COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND BREMERTON POLICE OFFICERS GUILD January 1, 2018 through December 31, 2020 ARTICLE TITLE PAGE Preamble..............................................................................................................................................1 Article 1 Discrimination Allegations................................................................................................... I Article2 Recognition........................................................................................................................... l Article3 Guild Dues............................................................................................................................1 Article4 Guild Activity.......................................................................................................................2 Article5 Wages...................................................................................................................................3 Article6 Hours Of Work..................................................................................................................... 4 Article7 Overtime.............................................................................................................................11 Article8 Vacation Leave...................................................................................................................13 Article9 Holidays..............................................................................................................................15 Article10 Sick Leave..........................................................................................................................16 Article11 Industrial Disability............................................................................................................19 Article12 Other Paid Leave................................................................................................................19 Article 13 Retirement Benefits............................................................................................................20 Article 14 Insurance Benefits..............................................................................................................21 Article 15 Clothing And Uniform Cleaning Allowance......................................................................22 Article 16 Personnel Practices.............................................................................................................23 Article17 Management Rights............................................................................................................ 26 Article 18 Performance Of Duty/No Strike.........................................................................................26 Article 19 Grievance Procedure...........................................................................................................26 Article20 Severability.........................................................................................................................28 Article21 Entire Agreement................................................................................................................28 Article 22 Conflicting Provisions........................................................................................................28 Article 23 Labor Management Committee..........................................................................................29 Article24 Premium Pay.......................................................................................................................29 Article 25 Retirement Benefits/Deferred Compensation.....................................................................29 Article 26 Educational Incentive..........................................................................................................30 Article27 Term........................................................................................................................30 Appendix A 2016-2017 Pay Rates.......................................................................................................... 32 LABOR AGREEMENT BY AND BETWEEN THE CITY Of BREMERTON AND BREMERTON POLICE OFFICERS GUILD JANUARY 1, 2018 THROUGH DECEMBER 31, 2020 PREAMBLE This Agreement is made and entered into pursuant to the provisions of RCW Chapter 41.56 by and between the City of Bremerton, a municipal corporation of the State of Washington, hereinafter known as the "City", and the Bremerton Police Officers Guild hereinafter known as the "Guild" for the purpose of setting forth the wages, hours and working conditions which shall be in effect during the term of this Agreement for employees included in the bargaining unit described in Article 2 below. ARTICLE 1 DISCRIMINATION ALLEGATIONS 1.1 An employee who believes that he or she has been the subject of unlawful discrimination on the basis of political affiliation, age, sex, marital status, race, creed, color, religion, national origin, sexual orientation, or activity protected by RCW 41.56 shall seek relief through the appropriate local, state or federal agency charged with investigating such matters. ARTICLE 2 RECOGNITION 2.1 The City recognizes the Guild as the sole and exclusive bargaining representative for the purpose of negotiations concerning wages, hours and working conditions for the bargaining unit described in the State of Washington Public Relations Commission Decision No. 2371-PECB dated the 10th day of January, 1986 as: "All full-time and regular part-time uniformed employees holding the rank of sergeant or below in the Bremerton Police Department; excluding all confidential or supervisory and other employees of the employer." ARTICLE 3 GUILD DUES 3.1 DUES DEDUCTIONS: The City will deduct monthly Guild dues and initiation fees uniformly required of membership from the pay of those employees who provide written authorization to the City to make such deductions. The City will transmit the total amount of deductions to the Treasurer of the Guild. 3.2 MAINTENANCE OF MEMBERSHIP: An employee who is a member of the Guild upon the date of the signing of this Agreement and an employee who joins the Guild subsequent to the date of the signing of this Agreement shall maintain membership in good standing with the Guild through the payment of periodic dues assessed by the Guild during the term of this Agreement. An employee who was not a member of the Guild prior to September 3, 1986 shall not be subject to this Article. 3.3 SERVICE FEE OPTION: New employees within thirty (30) calendar days of hire and all other employees shall elect whether that employee wishes to (1) join the Guild and pay Guild dues and fees or (2) decline to join the Guild and pay a service fee equivalent to regular Guild initiation fees and dues to the extent permitted by law. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 1 of 31 3.4 EQUIVALENT DUES PAYMENT: In accordance with RCW 41.56.122, objections to joining the Guild which are based on bona fide religious tenets or teachings of a church or religious body as may be determined by the Public Employment Relations Commission will be observed. Any such employee shall pay an amount of money equivalent to regular Guild dues to a nonreligious charity mutually agreed upon by the employee affected and the Guild. 3.5 FAILURE TO COMPLY: An employee who fails to comply with this Article shall be terminated upon notice of such fact in writing from the Guild to the City. Termination of such an employee shall become effective within thirty (30) calendar days from the date the City received the notice, unless the employee has remedied the delinquency within said thirty (30) calendar day period provided that the regular failure to timely pay dues, service fees or charitable contributions shall, upon the request of the Guild, result in the discharge of the offending employee. 3.6 HOLD HARMLESS: The Guild shall indemnify, defend, and hold the City harmless from any and all liability to third parties resulting from the administration of the provisions of this Article. ARTICLE 4 GUILD ACTIVITY 4.1 CONDUCT OF GUILD BUSINESS: Guild business, such as handling grievances and other legitimate routine matters, may be conducted on Police Department premises provided that such business does not interfere with Police Department operations. Scheduled Guild meetings may be held in Police Department facilities provided that such meetings do not interfere with Police Department operations and are approved in advance by the Police Chief or designee. 4.2 GUILD REPRESENTATIVES: The Guild shall provide written notice to the Manager of Human Resources and the Police Chief of the names of the officials authorized to represent the Guild immediately upon their election or appointment. The City will provide reasonable access to City premises to such authorized representatives for the purpose of handling grievances and other legitimate Guild business provided that such access does not interfere with the work and duties of Guild employee representatives or of other on -duty employees. The Police Chief or designee shall grant an employee who is also a Guild Representative reasonable release time while on duty for the purpose of handling grievances and other legitimate Guild business, provided that such release time does not unreasonably interfere with the work and duties of the employees or of other on -duty employees. 4.3 USE OF CITY PROPERTY: Use of City property is authorized as provided below. 4.3.1 USE OF EQUIPMENT: The following Police Department equipment is authorized for use by authorized Guild representatives for Guild business: 4.3.1.1 WORD PROCESSING EQUIPMENT, COMPUTERS AND TYPEWRITERS: when needed for short work. 4.3.1.2 COPY MACHINES: up to five (5) copies of documents for members of the Guild's board. If more are needed, the Guild shall reimburse the Police Department for costs subsequent to receipt of an itemized billing. 4.3.1.3 TELEPHONE: Local calls are approved. Costs of long distance calls and FAX use shall be reimbursed by the Guild to the Police Department subsequent to receipt of an itemized billing. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31 /2020 Page 2 of 31 4.3.2 BULLETIN BOARDS: The Police Department shall permit the reasonable and lawful use of bulletin boards by the Guild for the posting of notices relating to official Guild business. ARTICLE 5 WAGES 5.1 HOURLY WAGE RATES: Hourly wage rates shall be paid as set forth in Appendix A which is attached hereto and made a part hereof which reflects the following: 2018 3% general wage increase, effective January 1, 2018 2019 2.5% general wage increase, effective January 1, 2019 2020 2.5% general wage increase, effective January 1, 2020 • Step percentages are calculated after the annual wage adjustment is applied. Wage adjustments will be calculated out to three (3) decimal places. Longevity pay rates are calculated from the base rate at 100%. Published hourly wages are estimates and actuals may vary (due to penny rounding) and will be calculated by the City payroll software system. 5.1.1 Advancement through the hourly wage rates from the first step through the final step will occur upon completion of the prescribed number of full year(s) of continuous employment since the employee's initial hire date, or in the case of Sergeants, the date of promotion. In the event an employee is on approved leave of absence without pay, the employee's next wage rate advancement date will be extended by the actual number of days the employee was absent on such leave. No such step increase shall be denied employees who have met acceptable performance standards. Step increases may be withheld for a maximum of six (6) months. The denial of a step increase is subject to the grievance procedure. 5.1.2 New Hire Wage Rates shall be set as follows: A. A new employee with no prior relevant work experience shall have his or her wage rate set at the first step of the pay scale. B. A new employee who has prior paid work experience as a full time Patrol Officer in a police service which operates a full time service using paid employees, may be hired up to and including the fifth (5"') step based upon qualifications and relevant years and type of prior experience. C. A new employee who has no prior Patrol Officer experience (as described above), but has other relevant experience may have his or her pay rate set at a higher step based upon relevant years and type of prior paid work experience. Placement at higher than the first step shall be at the discretion of the Chief with the approval of the Human Resources Manager and Financial Services. 5.1.3 The Sergeant's base salary at Step 1 will be not less than six point seven percent (6.7%) above the Corporal's base pay rate. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 3 of 31 5.2 LONGEVITY PAY: Longevity pay, which is a rate of pay continuous service with the City, shall be calculated on the rate and shall be paid as follows: LEOFF II: Length of Continuous Service based on the length of completed individual employee's hourly wage Rate Per Hour Effective January 1, 2017, in recognition of the change in deferred compensation occurring on that date, the LEOFF 11 Schedule for Longevity Pay shall be revised as follows: 0 through 5 years continuous employment 0% Commencing 6 through 10 years continuous employment 1.25% Commencing 11 through 15 years continuous employment 2.5% Commencing 16 through 20 years continuous employment 9.25% Commencing 21 through 25 years continuous employment 10.50% Commencing 26 years and over continuous employment 12.00% 5.3 ON CALL PAY: When the Employer places an employee on "on-call status," the employee shall be compensated at a rate of one-third (1/3) the regular hourly rate of pay for time spent on call. The following time spent on call is compensable: When an employee is required to remain at any particular place during the on-call time, and the employee must be prepared to respond. This provision shall not apply to employees who normally carry cell phones or other electronic communication devices, and such employees' time off shall not be restricted. 5.4 OFFICER IN CHARGE: When a patrol officer is assigned substantially the full duties of Sergeant, the officer will be paid at a rate as if promoted to Sergeant for the duration of the assignment. When a Corporal is assigned the function of the primary supervisor of a unit or shift during an extended leave of absence of the Sergeant (10 consecutive working days or more), the Corporal will be paid at the Sergeant's rate as if they were promoted to Sergeant for the full period of the absence (retro to the start of assignment). ARTICLE 6 HOURS OF WORK 6.1 Days off will be assigned by supervisors as currently practiced. Other shifts may be worked, provided they do not exceed forty (40) hours per week and are mutually agreed to by the Employer and employee. Individuals that apply for other operational units of work such as Bike Patrol, Boat Patrol, Traffic Unit, K-9 Unit, School Resource, special grant assignments, agree up front when selected for the assignment to mutually agree to adjust hours as outlined in the assignment announcement. The Department shall provide at least 72 hours advance notice of the need to adjust schedules for these special units. The Department shall work on resolutions with the employee when a change in the work week creates personal issues and shall seek volunteers from within that work unit first before requiring such officers to change their schedule. 6.2 Shift assignments within the Patrol and Traffic Unit shall be bid by seniority at least twice annually, on March 1St and September 1St, (within classification, first Sergeants, then Corporals, then Police Officers) provided that no more than thirty-three percent (33%) of the positions within the Patrol and Traffic Unit shall be exempt (junior 33%) from the bidding process and assigned as is provided below. For the purposes of this section, seniority shall be defined as all paid regular time worked as a commissioned officer with the City of Bremerton Police Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 4 of 31 Department. Special events and emphasis patrol for the Traffic Unit shall be excluded from Article 6. 6.2.1 Exempt positions may be assigned at the sole discretion of the Chief of Police, provided that no officer past his or her one-year probationary period may be reassigned to another shift more often than once every six months. 6.2.2 Notwithstanding 6.2 and 6.2.1, the Chief of Police may reassign any non -probationary employee for just cause twice each year and probationary employees may be reassigned to shifts at the discretion of the Chief of Police. 6.2.3 Sergeants shall be allowed to bid for shifts on the basis of time since promotion to Sergeant, provided Section 6.2.1 and 6.2.2 above shall not apply to Sergeants, and provided further, the Chief of Police may assign a Sergeant to a particular shift without regard to seniority when such assignment is reasonably necessary to the efficient provision of police services. 6.2.4 The Support Services Division is comprised of the Special Operation Group, General Investigations, Community Resource Unit and other specialty non -patrol units of work. Employees of this Division are scheduled to work ten (10) daily hours or as mutually agreed. 6.2.5 Employees who are on light duty for an extended period of time during shift bid will not be included in the bidding process. 6.3 SHIFT EXCHANGES: Employees may exchange full or partial shifts when the change does not interfere with the duties and responsibilities of the employees in their positions and provided that the immediate supervisors of such employees find that no interference will occur as the result of a mutually agreeable shift exchange. The Police Chief or the Chief's designee may overrule such a finding by the immediate supervisor in the event that the Department's service or training needs require specific employees to be on duty during their assigned shifts. 6.4 SHIFT CHANGEOVER COORDINATION: An employee who has been transferred from one shift to another shall normally be scheduled to begin the newly assigned shift upon a day or at a time which results in the employee receiving at least eight (8) hours of rest between work shifts. In the event that the transfer from one shift to another results in an employee receiving less than eight (8) hours of rest between work shifts, the employee shall be paid overtime for time worked during the eight (8) hour period between work shifts. An employee who receives a minimum of eight (8) hours of off-duty time between work shifts shall not be eligible for overtime compensation for shift changeover coordination time. 6.5 ASSIGNMENT TRANSFER REVIEW REQUEST: Assignment transfers (those not covered by Section 6.2 and subsections) will be made at the discretion of the Police Chief or designee. Except in emergencies, at the employee's request, the Police Chief will provide his/her reason for the assignment transfer prior to the transfer. The employee may submit information as to why the assignment transfer should not take place. The Police Chief will review the information and inform the employee of his/her decision. Transfers resulting from operational or performance related issues are not subject to the grievance procedure. Transfers resulting from misconduct or disciplinary issues are subject to the grievance procedures. It shall be understood that these specialty non -patrol assignments are temporary in nature and there is no guarantee as to the amount of time an employee will serve in that assignment. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 5 of 31 6.6 TRAINING: 6.6.1 Standard shift: The employees regularly scheduled days and hours of work. 6.6.2 Full day training: The employee's standard shift hours (1 Oh 40m, l Oh, 8h) will be utilized to cover travel time and training time. Any training day, which will be no more than the employee's standard shift hours, but no less than 8 hours, will be counted as an entire work day. 6.6.3 Partial Day training: Training time which is less than a full standard shift. 6.6.4 Required Training: Training that is defined by the Bremerton Police Department's Policy and Procedures for Accreditation purposes. (Refer to BPD LEXIPOL Manual). 6.6.5 Non -Required training: Training the department has deemed not binding or obligatory to the employee. Non -Required training would more often than not fall under voluntary or requested training. 6.6.6 Mandatory Training: Those training days set aside each overlapping Friday of every January, February, and March of each calendar year. 6.6.7 Training will be scheduled during the employee's standard shift whenever possible. 6.6.8 If required training must occur in whole or in part during a day/time that is not the employees standard shift then then the employee shall be given at least 14 calendar days' notice of the required schedule change, unless mutually agreed upon by the affected employee(s) and overtime is authorized, or the time may be shift adjusted (time for time — 7/28 days, (as long as staffing levels allow)) by mutual agreement. Additionally non -mandatory training does not influence an employee's normal ability to use vacation, comp time, etc. during their standard shift. 6.6.9 A training day that is less than 8 hours, including travel time, but excluding meal breaks greater than 30 minutes requires the employee to finish their standard shift hours. A training day that exceeds the employee's standard shift hours shall be compensated via overtime, comp time, or shift adjustment when mutually agreed upon. 6.6.10 Training will be scheduled during the employees normal work day and hours whenever possible. 6.6.11 If non -required training is to occur in whole or in part during a day/time that is not the employee's standard shift, then the employee shall be given at least 14 calendar days' notice of the required schedule change, unless mutually agreed upon by the affected employee(s). Shift adjustment or 7/28 days are allowable (as long as staffing levels allow) by mutual agreement in order to attend said training. 6.6.12 Mandatory training: Vacation and comp time will not be authorized during periods of Mandatory Training, except by advanced special authorization on a case-by-case basis, authorized by the Training Lieutenant or above. By mutual agreement, officers may adjust their shift in order to conduct training. If shift adjustment is required/needed for such training, at least 14 calendar days of advanced notice will be given to each affected employee, unless mutually agreed upon. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 6 of 31 Periods of Mandatory Training are established as each overlapping Friday for the months of January, February, and March of each calendar year. Each of these days will be a full day of training. Each employee must complete at least one full day of training for each of these months, as the training content will the same for each overlap Friday for each month. Employees who are unable to attend any one of the three mandatory training days will be required to make-up those day(s). The employee shall be responsible to coordinate those make-up days with the Training Lieutenant, or his/her designee. Management will attempt to schedule make-up training dates during the employee's regular schedule. If that cannot be accommodated, the employee shall be given at least 14 calendar days' notice of his/her schedule change. This will be completed by way of 7/28 time or a shift adjust. 6.7 DEFINITIONS: 6.7.1 "Team" Three Sergeants, and the Officers and Corporals reporting to those three Sergeants. 6.7.2 "Squad" One Sergeant, the Officers and Corporal(s) reporting to that Sergeant. 6.7.3 "Shift" One work period (1" Watch - Day, 2"d Watch - Swing, or 3' Watch -Graveyard) comprised of 10 hours and 40 minutes. 6.7.4 "Long Term" Any time frame more than 30 consecutive days. 6.7.5 "BPOG" Bremerton Police Officers Guild. 6.7.6 "7/28 days" trade days; 1:1 day -for- day, or hour -for -hour ratio within each 28 day pay period. 6.7.7 "Overtime" is all required and authorized work performed in excess of an employee's normal work schedule. 6.7.8 "Personal Compensatory Days" is the request of compensatory time inside the established six (6) days notice, with the expectation that the department grant the compensatory time requested, regardless of the overtime or staffing issue(s) the time may cause (this does not mean that the City must backfill positions). 6.8 THE PATROL SCHEDULE: Patrol Officers, Corporal/OIC and Patrol Sergeants will work 5 days on duty, 4 days off duty, 5 days on duty, 4 days off duty, 5 days on duty, 5 days off duty. 10 hour 40 minute shifts. Overlap days will occur on Fridays. 6.9 SHIFT START AND ENDING TIMES: The following hours apply to patrol Officers, Corporal/OIC and Patrol Sergeants: I" Watch 0620-1700 hours 2" d Watch 1600-0240 hours 3rd Watch 2000-0640 hours 6.10 PATROL SHIFT BIDDING: Shift bids will occur twice each calendar year. Shifts are bid in 6 calendar month blocks (January -June, July -December). Employees must stay on the same Team (Blue or Gold) for the entire calendar year. If an employee switches Teams when bidding the Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 7 of 31 next calendar year, it may cause some officers to work more than five consecutive days. The parties agree that these additional days will be made as 7/28 days (trade days at a 1:1, day for day, or hour -for -hour ratio must be taken within the current 28 day cycle) by mutual agreement. The City of Bremerton will not pay overtime or grant compensatory time due to persons rotating from their initially selected Team unless required by FLSA guidelines. Sergeants bid first by seniority (date of promotion). Corporals will bid next by seniority (date of promotion). Corporals bid for Corporal positions by seniority. According to seniority each Corporal will be offered the allotted Corporal positions until the one per squad requirement is met. If there is not a Corporal on each squad by the end of the Corporal shift bid, the lowest seniority Corporal(s) will be ordered to fill the remaining Corporal position(s). All other officers will bid next. Should a squad lose a Corporal position due to retirement, reassignment or other reasons, and there is not another Corporal on that squad, Corporals may be asked, by seniority, to move to a squad on the same team so that each squad has a Corporal. If no Corporal volunteers to switch squads the lowest seniority Patrol Corporal will be ordered to that squad without additional compensation. 6.11 SHIFT BIDS FOR SPECIALTY UNIT TRANSFERS — Specialty Units include General Investigations Unit (GIU), Special Operations Group (SOG), Traffic, School Resource Officer (SRO), any other future Unit that may/could be added outside regular Patrol Operations. 6.11.1 If a Specialty Unit Member (SUM) is rotated out of a Specialty Unit prior to the January bid (generally September 1), the SUM shall have the opportunity to bid for his/her color and shift of choice based upon his/her rank and seniority. 6.11.2 If the SUM is rotated out of a Specialty Unit prior to the July Shift bid (generally March 1), the SUM shall have the opportunity to bid for his/her shift of choice, based upon his/her rank and seniority, as the SUM will replace or fill the open slot on whatever color is open and remain on said color for the remainder of the year until the following January bid. 6. 11.3 In the event a SUM is rotated back into patrol between bids for whatever reason, the SUM will fill the open slot. Example, Blue Swing Shift has an opening, that SUM will then fill that position for the remainder of that shift bid. When the next bid cycle is up, the officer will then be able to bid for his or her shift based upon his/her rank and seniority on Blue only until the January bid. 6. 11.4 In the event there are two color slots open, one on either color when the SUM is rotated back into patrol, the SUM shall have their choice of colors. If the rotation happens to fall upon the July bid), that particular bid will be treated as if it were a January bid cycle. 6. 11.5 If the SUM is rotated back into patrol prior to the January or July shift bid, or if shift bid is currently in process, and the SUM has not yet been passed over (based upon their rank and seniority), he/she shall be given the opportunity to bid. If at all possible the Command Staff will attempt to make selections and/or decisions regarding the movement of SUMS in Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 8 of 31 an effort to avoid disruption of the bidding process (inform both the SUM as well as the Patrol Lieutenant in charge of the bidding process, of the SUM's rotation back to patrol). 6.11.6 Exceptions can be made in the event an officer has an emergency (family care, medical needs, etc.), in which the aforementioned process may be deviated. These issues shall be brought to the Officer's Sergeant and Patrol Lieutenant as soon as possible so as to work them through. 6.11.7 The Administration will attempt to accommodate the Officer as best they can, but the intent is not to manipulate, or disrupt the normal shift bid process. 6.11.8 Sergeant's may approve a member's request to flex their schedule as long as it does not cause overtime. This article is agreed to for a one year trial period beginning on January 1, 2019 and ending December 31, 2019. During this trial period Chief of Police has the authority terminate the Sergeant's ability to approve flexing schedules. 6.12 PATROL VACATION BIDDING: 6.12.1 Sergeants bid first by seniority (date of promotion) and then Corporals will bid next by seniority (date of promotion). 6.12.2 All other officers will bid next by seniority 6.12.3 For each squad, both the Sergeant and the Corporal should not be scheduled off for the same vacation days. 6.13 COVERING LONG TERM PATROL OFFICER SHORTAGES: 6.13.1 Volunteer(s) will be sought to change squads within the Team to fill-in where needed if this does not create another shortage. 6.13.2 If no officer volunteers on the same Team, volunteer(s) will be sought from the other Team if this does not create another shortage. 6.13.3 If no officer still volunteers, then officers may be ordered to move to another shift/squad/team by reverse seniority as long as this does not create another shortage and complies with section 6.2 of the current BPOG contract. 6.13.4 If no officer can be moved without creating another shortage, specialty positions may be asked to voluntarily move to the affected squad for the duration of the shortage. A specialty officer filling a patrol position will maintain their specialty pay and other benefits of their current assignment. 6.13.5 If no specialty position officer/detective volunteers to fill the position, specialty officers/detectives may be ordered to move to the affected squad(s) in the following order: The Chief of Police has the sole discretion in assigning these positions when filling long term vacancies following the guidelines set forth in sections 6.2.3 and 6.2.4 of the BPOG contract. 6.13.5.1 Traffic Officers 6.13.5.2 Detectives Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 9 of 31 6.14 MISCELLANEOUS PROVISIONS: 6.14.1 The maximum shift allowed for Officers to work will normally be 16 consecutive hours in a 24 hour period. This also applies to any off-duty employment. Exceptions may be made due to exigent or emergency situations. The shift supervisor responsible for the overtime period shall be responsible for approving such exceptions. Examples of exigent situations where employees may be required to work more than 16 hours in a 24 hour period include, but are not limited to: necessary report completion, major investigations such as those involving BARRK Felonies, and court appearances. 6.14.2 FLSA work period is 7K/28 days - 171 hours. 6.14.3 Overtime for the purposes of this agreement is any time worked outside a normally scheduled shift. 6.14.5 Vacation and sick leave accrual remain the same. 10 hours and 40 minutes is needed to take a full day off under this schedule. 6.14.8 Requests for vacation, compensatory time and sick leave will be taken in five (5) minute increments, with the minimum request of twenty (20) minutes. 6.15 GENERAL INVESTIGATIONS UNIT AND SPECIAL OPERATIONS GROUP SCHEDULES: Officers and Sergeants assigned to the General Investigations Unit and the Special Operations Unit shall generally work four (4) consecutive days followed by three (3) consecutive days off. Employees may split their work week, on a temporary basis, by mutual agreement as long as the change occurs within the FSLA workweek and does not incur overtime. (i.e. work Monday, Tuesday, Thursday, Friday) 6.15.1 Days off will normally be Saturday and Sunday consecutively with either a Friday or Monday. 6.15.2 Members assigned to the General Investigations Unit will normally work from 0700 to 1700 hours. 6.15.3 Members assigned to the Special Operations Group will normally work from 0900 to 1900 hours. 6.15.4 Members assigned to the General Investigations Unit and the Special Operations Group agree, as a condition of assignment, to adjust work hours for operational needs as outlined in the assignment announcement. The City shall provide at least 72 hours advance notice of the need to adjust schedules. The City shall work on resolutions with the employee when a change in the work schedule creates personal issues. 6.15.5 Any temporary change to an employee's work schedule is by mutual agreement between the employee and the City. 6.15.6 The additional holiday accrual for President's Day, Martin Luther King's Birthday, Veteran's Day and the day after Thanksgiving as set forth in Article 9.4 of the collective bargaining agreement, will remain at 8.0 hours per holiday. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 10 of 31 6.15.7 When a holiday falls on an employee's regularly scheduled work day and the employee takes it off, the employee shall be required to use either vacation or compensatory time to cover the entire 10 hour shift. 6.15.8 The standard 10 hour shift will be utilized to cover travel time and training time. Any training day up to 10 hours but not less than 8 hours that takes place at a location outside the City limits will be counted as an entire work day. An off-site training day (including travel time) that consists of less than 8 hours requires the employee to work the remaining hours of the full 10 hour shift or take the time off utilizing accrued leave. ARTICLE 7 OVERTIME 7.1 OVERTIME COMPENSATION: Overtime work shall be compensated at the rate of one -and - one -half (1'/2) times an employee's hourly rate in cash or in one -and -one-half (1'/2) times the overtime hours worked in compensatory time. Overtime shall be calculated in five (5) minute increments. Overtime compensation in compensatory time may be granted upon the request of the employee and with the approval of the Police Chief or designee. 7.2 LIMITATION ON COMPENSATORY TIME: The maximum allowed accrual of compensatory time is sixty (60) hours and all time accrued in excess of that maximum shall be paid at the applicable rate, provided that time earned may be cashed out upon the employee's request as provided below. 7.2.1 Compensatory time submitted with less than 6 days prior notice will be handled in the same manner as non -bid vacation. 7.2.2 Compensatory time shall not be canceled once it has been approved. 7.2.3 Compensatory time may not be approved on mandatory training days. 7.2.4 Compensatory time shall be approved on a first come first served basis. 7.2.5 Only one compensatory time request per shift can cause overtime and that request shall be approved. 7.2.6 Employees who wish to cancel approved compensatory time request shall give at least 24 hours notice. Employees who fail to cancel approved compensatory time requests with 24 hours notice shall be required to take the time off. 7.2.7 Management has the right to establish shift staffing levels, including the decision to back fill a shift with overtime or shift adjusted officers. 7.2.8 Management also has the right to deny any/all compensatory time due to emergency events such as large scale or violent public unrest, natural disaster, or other emergency of similar magnitude. 7.2.9 Vacation leave will not be canceled due to requests for compensatory time. 7.2.10 Employees will be allowed up to a maximum of two (2) "Personal Compensatory Days", annually. Employees who wish to cash out accumulated compensatory time will have the option of receiving this pay on the pay period ending November 1511' of each year. Employees who exercise this option shall submit their request in writing to the Chief no later than November 1 st each year. It shall be the sole responsibility of the employee to request cash out of accumulated compensatory time in a timely manner, therefore, any such requests received after the November I" deadline will be disapproved and sent back to the employee. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31 /2020 Page 11 of 31 7.4 DAYLIGHT SAVINGS TIME: Guild members who work the affected shift during the fall when clocks are moved back one hour will be paid one hour at the overtime rate. Guild members who work the affected shift during the spring when clocks are moved one hour forward will either use one hour of vacation leave or have the option to begin their shift one hour earlier unless the Department has a need and the Police Chief or his/her designee requires the Guild member to work the additional hour at the end of the shift. 7.5 CALL BACK OVERTIME: An employee who has left the workplace and who is called back to duty with less than twenty-four (24) hour notice for a period of time which is less than three (3) hours, shall receive a minimum of three (3) hours of overtime compensation. Employees receiving 24 hour notice will receive a minimum of two (2) hours of overtime compensation. 7.5.1 It is agreed that when a Sergeant, Corporal, or Officer is off duty and called in to work; the call out time begins at the time said employee received the call and said employee shall be compensated per current overtime agreements. In the event that said employee is called off prior to going enroute or canceled within fifteen (15) minutes whichever comes first; the employee will not be due any compensation for overtime. The employee shall provide a reasonable estimate of the time needed to respond. The department may contact another employee for the call out if the estimated time to respond is unreasonable. 7.6 COURT AND/OR SUBPOENAED APPEARANCES: An employee who appears in Court arising out of his/her employment with the City or who responds to a subpoena on behalf of the City on off-duty time shall receive a minimum of three (3) hours of overtime compensation for such appearance and a minimum of one and half hours (1.5) for administrative hearings. 7.6.1 An employee under subpoena will contact the prosecutor's office after 1500 hours on the business day prior to the scheduled court date to inquire whether or not they are needed the following day: 7.6.2 If the employee is required to appear the next day at a time other than their normal work hours and their appearance is subsequently cancelled, the employee shall receive 3 hours overtime or compensatory time. 7.6.3 If the employee is told they will not be needed the following day but to re -contact the court at another specified date and time for possible future appearances under the same subpoena, no overtime is earned. 7.7 For civil subpoenas, payment for off-duty subpoena appearance is based on matters resulting from the employee performing police duties for the City. Off-duty officers will be compensated for total time in Court at the overtime rate of pay or a minimum of three (3) hours whichever is greater. The minimum three (3) hours does not apply to Civil Service proceedings or arbitration, but employee is paid for actual time spent performing police duties for the City. Witness fees received by the officer from the plaintiff or defendant shall be assigned to the City. This Agreement does not include other subpoenaed appearances, such as Civil Service or arbitration subpoena, or compensation for telephone calls. The employee shall furnish a copy to his/her immediate supervisor as soon as possible after the subpoena is served. 7.8 When the City is the employer, all such overtime police work will be first offered to BPOG Police Officers, subject to the Bremerton Police Management Association (BPMA) bargaining unit Letter of Understanding date April 1, 2002. For each such police overtime project, BPD management will reasonably provide information regarding the scope of the project, manpower Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 12 of 31 needs, anticipated duration, and work-related expectations associated with the project. In the event that BPOG Police Officer bargaining unit employees are unable to provide all police overtime service needs, or manpower shortages are observed or anticipated, BPD Management will advise and consult with BPOG to identify needs and staffing alternatives. Other agency commissioned law enforcement staffing should be utilized only after reasonable and practicable efforts have been made to fill manpower needs by BPOG Police Officers. ARTICLE 8 VACATION LEAVE 8.1 VACATION ACCRUAL: Employees shall accrue vacation time with pay for all regularly scheduled work time including paid holiday, sick leave, vacation and other paid leave time and excluding time for which workers' compensation time loss benefits are paid pursuant to the following schedule: Period of Continuous Full Time Employment Annual Accrual Date of Hire through 5 years 104 hours 6th year 120 hours 7th year 128 hours 8th year 136 hours 9th year 144 hours 10th year 152 hours 11th year 160 hours 12th year 168 hours 13th year 176 hours 14th year 184 hours 15th year 192 hours 16th year 200 hours 17th year and thereafter 208 hours 8.2 VACATION ELIGIBILITY: An employee becomes eligible to take accrued vacation time upon completion of six (6) full months of employment; provided, however, the Chief of Police may grant an exception to the six-month rule due to mitigating circumstances. Vacation time must be taken in segments of twenty (20) minutes or more. Vacation time must be fully accrued prior to the time an employee takes any vacation time off. 8.3 VACATION SCHEDULING: Annual vacation leave shall be authorized by the Police Chief or designee. Employees shall be allowed to bid for vacations based upon seniority following the shift bidding process; provided that vacation requests for time not scheduled throughout the bidding process shall be scheduled by mutual agreement. Patrol employees who have been approved vacation leave shall give no less than twenty-four (24) hours notice if they decide not to take the leave as approved and instead report for work. 8.3.1 Requests for vacation and/or compensatory time shall be approved or denied by the Sergeant or Corporal and the employee shall be notified within a reasonable time period. The employee shall be given a copy of any leave request once it is approved or denied. Once vacation is approved it shall not be canceled except due to emergency events such as large scale or violent public unrest, natural disaster, or other emergency of similar magnitude. If a leave request is denied the time, date and reason for denial will be written on the leave slip prior to giving a copy to the employee. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31 /2020 Page 13 of 31 8.4 MAXIMUM VACATION ACCRUAL: The maximum number of vacation accrual hours that any employee shall be allowed to carry forward from one calendar year to the next is as follows: Years of Continuous Employment 0-2 years 2-5 years 5-10 years 10-15 years 15-20 years 20+ years Maximum Balance 160 hours 200 hours 240 hours 280 hours 320 hours 360 hours 8.4.1 Should an employee not schedule his/her vacation by October 315' to insure that his/her carry- over each year does not exceed the maximum allowed, then as of January I" of any year such excess leave shall be lost. However, should the employee not be able to schedule vacation due to no fault of his/her own and thereby cause the employee's accrual to exceed the maximum amount or the employee is unable to use leave due to employee's own serious health condition the employee may request that up to forty (40) hours of the excess leave be cashed out. The request must include the reason for the excess leave balance and be approved by the Police Chief and Human Resources Manager. Requests must be received by the Human Resources Department no later than January 15" and will be paid on the pay period ending January 315. Should the City in its opinion not have sufficient budgeted funds to pay for all or part of the vacation days being requested to be cashed out, the City may deny the request and those canceled days may be carried forward. With the Chief's approval carryover will be allowed if it is scheduled and taken within the first three (3) months of the calendar year. If approved to carryover the (40) hours it can be used during mandatory training months as long as mandatory training is completed. 8.5 VACATION PAY -OUT: Upon the retirement, resignation, or termination of an employee or upon the date of an employee's disability retirement, the accrued vacation hours of such an employee will be paid to the employee in a cash lump sum payment. 8.6 DONATIONS OF VACATION LEAVE: Donations of Vacation leave permit employees to aid a fellow employee (or their immediate families) who is suffering from an extraordinary or severe illness, injury, impairment, physical or mental condition which has caused or is likely to cause the employee to take leave without pay or to terminate his or her employment prior to a determination that the affected employee is not expected to recover to an extent that will enable the employee to resume his or her normal duties or the duties of another position with the City or another employer. 8.6.1 ELIGIBILITY: An employee or employee's immediate family member (as defined in the FMLA) who (1) is suffering from an illness or injury causing his or her extended absence from work, and (2) who has depleted or will shortly deplete his or her total available accrued vacation, sick and floating holiday leave, may request donations of vacation leave. 8.6.2 CRITERIA FOR APPROVAL: A request for donations of vacation leave shall be submitted to the Chief of Police accompanied by medical documentation verifying the medical condition requiring the need for leave, and the time period during which the Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 14 of 31 employee can reasonably be expected to be absent from work due to the condition. Upon verifying that the requesting employee meets all of the eligibility requirements above and upon determining that the medical documentation received provides appropriate verification of the medical condition and time period involved, the Department Head will recommend the employee's request for donations of vacation leave be approved by the Mayor. The Mayor will review the request to assure that all of the requirements set forth in this subsection have been met and, if so, shall approve the employee's request for donations of vacation leave. 8.6.3 CONDITIONS OF DONATION: An employee who has been employed for at least six (6) months who desires to donate accrued vacation leave to a requesting employee will do so as a free and voluntary act and no duress or coercion shall be placed upon an employee to make such donation of his/her accrued vacation leave. Employees who are utilizing donated leave to cover their own absences may not donate leave to another employee until such time as they have returned to their normal schedule, and any excess donations made to them have been returned pursuant to 8.6.5 below. An employee who desires to donate vacation leave shall complete a Donation of Vacation Leave Form and submit it to his/her Department Head. The donated vacation leave will be transferred to the requesting employee's sick leave balance with the next payroll report. Forms will be date stamped and all time donated shall be in full hour increments and shall be credited to the employee on an hour -for -hour basis. A monthly update of the condition of the employee by the attending primary medical doctor shall be required and furnished to the Department Director. 8.6.4 USE OF DONATED LEAVE: An employee who has received donated vacation leave will be able to use the leave in the same manner as if he or she had personally accrued the leave, provided that the use of the leave is in conformance with the provisions of this Article. 8.6.5. LEAVE ACCRUED FROM DONATED LEAVE: While using donated leave, any leave accrued will be used first each pay period before the balance is deducted from the donated leave. 8.6.6. UNUSED DONATIONS: In the event of excess donations received but not used due to early recovery, resignation, retirement or death, all donations received but not utilized shall be returned to the donating employee(s) based on the proportion of hours that employee donated in relation to the total hours donated by all employees (e.g. an employee who donates 50 hours of 450 hours total donated shall be credited with 50/450ths of the hours not utilized). Such returned leave shall be reflected in the appropriate leave balance as soon as possible. Time donated for this purpose will not be considered as time used during the donor's performance rating period and does not count as sick leave used for Sick Leave incentive purposes. FR t40[010DLM:0]0117MI&I 9.1 HOLIDAYS OBSERVED: The following holidays shall be observed by the City: New Year's Day Martin Luther King's Birthday President's Day Memorial Day Memorial Day Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 15 of 31 Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Independence Day Christmas 9.1.1 In addition, any other holiday legally proclaimed by the Federal or State government, provided that the City takes official action to have such holiday also observed by the City. 9.2 FLOATING HOLIDAY: Each employee shall be allowed one (1) additional holiday to be observed by the employee on a day mutually agreeable to the employee and the Police Chief or designee. 9.3 HOLIDAY COMPENSATION: Employees shall receive an additional eighty-eight (88) hours vacation leave per year in lieu of holidays. Detectives who are working a 4-10 schedule shall receive ten (10) hours of vacation accrual for each city observed holiday one hundred and ten (110) hours annually. Hours in lieu of holidays will be pro -rated in employee's first and last year of service in a BPOG eligible position. The accrual and payment of such additional compensation shall be in accordance with the Employer's established practice in this regard. 9.3.2 The annual holiday accrual (listed in 9.3 above) shall be reduce by sixteen (16) hours and the hours will be dumped into the employees compensatory time bank on January I` of each year and will be available to be used per Article 7. This article will effect non -probationary employees only. The hours will be pro -rated for employees who pass probation or separate from service midyear. These hours must be used during the calendar year they are earned. If they are not used they will be put back into the employee's vacation balance, unless it causes the employee to exceed the maximum allowed carryover amount. If they cause the employee to exceed the maximum carry over amount the hours will be lost. 9.4 PREMIUM HOLIDAY COMPENSATION: An employee who works during the term of this Agreement on a holiday shall be compensated at the rate of one -and -one-half (1'/2) times the employee's hourly rate of pay except as provided in Section 9.5 below. 9.4.1 Employees who are required to work overtime on Christmas Day, Thanksgiving Day, New Year's Day, July 4", Labor Day, and Memorial Day will be paid double time during the overtime shift only (For example: If the employee is called in to work 3 hours before his/her normal shift, the employee will receive double time only for the three (3) hours not for his/her regular shift). 9.5 Non -uniformed officers may be called into work, or may choose to work during their regularly scheduled shift on President's Day, Martin Luther King's Birthday, Veteran's Day and the day after Thanksgiving and shall be paid at their regular rate of pay for all such hours worked. Non - uniformed officers shall also accrue an additional day to their vacation bank for each such holiday whether or not the day is worked. The four (4) additional days of eight (8) hours each, shall be allocated to the vacation bank as each of these holidays arise. Nothing contained herein creates a property right to a non -uniformed position and the Chief retains the right to transfer officers to and from non -patrol assignments as outlined in Section 6.5. ARTICLE 10 SICK LEAVE 10.1 SICK LEAVE ACCRUAL: Full-time employees shall accrue sick leave time with pay at the rate of four (4) hours per pay period Part-time employees who are on a leave of absence without pay will have their leave pro -rated if they have worked any portion of a pay period at .046154 for Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 16 of 31 each regular hour worked as outlined above. The maximum annual accrual is ninety-six (96) hours. 10.2 MAXIMUM SICK LEAVE ACCRUAL: Employees shall be able to accrue sick leave to a maximum of twelve hundred (1,200) hours as of November 1St of each year. 10.3 SICK LEAVE WORK PERFORMANCE BONUS: Employees who accrue over the 1200 hour maximum may cash out 50% of the hours over the 1200 hours and receive this bonus on the November 22"d pay day, and their sick leave balance will be reduced to 1200 hours. 10.4 SICK LEAVE INCENTIVE: An employee who takes forty-two and 66/100 (42.66) hours or less of sick leave in any full calendar year shall have eight (8) hours added to his or her vacation leave balance at the beginning of the following calendar year. 10.5 SICK LEAVE RETIREMENT OR DEATH PAYMENT: 10.5.2 LEOFF II employees who retire from City service on a service retirement, with less than one year notice shall be provided a Sick Leave Retirement Payment at thirty-five percent (35%) of the employee's accrued and unused sick leave hours to a maximum of 35% of 1200 hours (a maximum total of 420 hours), and shall be made to a HRA VEBA program. 10.5.3 LEOFF II employees who retire from City service on a service retirement with at least one (1) year notice shall be provided Sick Leave Retirement Payment at fifty percent (50%) of the employee's accrued and unused sick leave hours to a maximum of 50% of 1200 hours (a maximum of 600 hours), and payment shall be made to an HRA/VEBA program. 10.5.4 In the event an employee dies before reaching retirement, the payment will be made at 100% of accrued balance to the employee's estate at the employee's regular base hourly rate in effect at the time of retirement or death. 10.6 SICK LEAVE USE: Sick leave must be accrued in the pay period prior to use by an employee. Accrual is not credited to an employee's leave balance until after payroll is posted. Anticipated sick leave must be approved by the Police Chief or designee prior to using it. The Police Chief or designee shall not unreasonably withhold approval of sick leave with pay from employees. Sick leave shall be made available to each employee up to the amount of each employee's accrued sick leave balance and shall be used in increments of no less than one-quarter ('/4) hour to cover an employee's absence from his or her regularly scheduled work hours due to: 10.6.1 The temporary disability of an employee resulting from his or her personal illness or injury. 10.6.2 Providing care for an employee's child or children under the age of 18 or a spouse, parent, parent -in-law, or grandparent when they have a health condition that requires supervision or treatment, as currently defined by the Washington State industrial welfare law, RCW 49.12.270 and as may be amended by the Washington State Legislature. 10.6.3 Attending medical, dental and/or oculist appointments as needed for preventive or rehabilitative health care of the employee or the employee's child or children when such care requires parental presence to supervise or authorize treatment. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 17 of 31 10.6.4 Upon the birth or adoption of a child, a parent may use up to three (3) days of accrued sick leave. 10.6.5 Providing for an employee's immediate family member when the family member has a health condition that requires the assistance of an adult caretaker until such time as other care can be arranged. 10.6.6 When an employee is temporarily exhausted caused by required overtime due to major incidents/situations, court appearances (in which the employee was unable to adjust his/her schedule), or any other unforeseeable work related circumstances that would not allow a minimum of 8 hours rest prior to the start of his or her next scheduled shift. 10.7 NOTIFICATION OF SICK LEAVE USE: An employee who is absent or expects to be absent from work due to causes specified in Sick Leave Use above, shall provide notification as follows: 10.7.1 ROUTINE APPOINTMENTS: The employee shall give prior notice of the date and time of the appointment to his or her immediate supervisor. An employee's immediate supervisor may request that the employee reschedule routine appointments when the scheduled absence of the employee would unduly interfere with the operations of the Department. An immediate supervisor shall not unreasonably deny an employee sick leave with pay for routine medical, dental or oculist appointments. 10.7.2 UNANTICIPATED ABSENCE: An employee who is absent from work or who will be unable to report to work as scheduled due to personal illness or injury, or for other causes specified in Sick Leave Use above, shall promptly notify the Department by telephone or otherwise as soon as practicable and will make every effort to notify the Department within the first one-half (1/2) hour preceding each work day of absence. In the event of a prolonged illness or injury, the Department may exempt an employee from the requirement to daily report absences and may establish an alternative reporting arrangement appropriate to the circumstances. 10.7.3 SICK LEAVE DURING AUTHORIZED PAID LEAVE: An employee who becomes ill or is injured during the employee's paid vacation or compensatory time off may request the conversion of such paid leave to sick leave with pay by promptly notifying the department at the time of occurrence or as soon thereafter as reasonably feasible of the illness, injury, or incapacity and employee provides appropriate documentation as required by section 10.8. 10.8 SICK LEAVE DOCUMENTATION AND APPROVAL: An employee who has been absent on sick leave shall, on the day he/she returns to work, submit such forms and provide such information as are required by the Police Chief or designee to approve the use of sick leave with pay for the absence. The Police Chief or designee may require an employee to provide a professional physician's verification within 36 hours after reporting to work, of an employee's, child's or family member's illness or injury as a condition of approving sick leave with pay, if the Police Chief or designee has a reasonable basis to suspect sick leave is not being used in conformance with this Article. In the event the Police Chief or designee intends to require such verification, the employee will be notified of the requirement prior to returning to work. 10.8.1 The Employer retains the right to require employees to submit to medical or psychological examinations when the Employer has significant evidence that could cause Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 18 of 31 a reasonable person to inquire as to whether an employee is still capable of performing his or her job. Specifically, the Employer must have a genuine reason to doubt whether an employee can perform job-related functions. Any relevant medical history of the employee which the examining professional conducting a psychological evaluation requests may be released by the employee only to the examining professional. 10.9 Where the employee has been out on FMLA qualifying leave, or extended medical leave under the ADA or workers compensation upon the employee's notice to return to duty, the employer may request certification in accordance with law. 10.10 SEQUENCING OF LEAVES: Unless addressed elsewhere in this agreement, the use of vacation leave, compensatory time, and leave without pay, for purposes other than qualifying use under the Washington Family Care Act, is subject to approval by management. However, unless otherwise required by law, forms of leave shall be used and exhausted in the following sequences: 10.10.1 sick leave for qualifying incidents until it is exhausted; 10.10.2 vacation leave, floating holiday,) and/or compensatory time sequenced at the employee's option, until they are exhausted; 10.10.3 any donated leave, if available, until it is exhausted; then 10.10.4 leave without pay. ARTICLE 11 INDUSTRIAL DISABILITY 11.1 INDUSTRIAL DISABILITY LEAVE FOR LEOFF II EMPLOYEES: An employee who qualifies for and is included in the Washington State Retirement System commonly referred to as "LEOFF II", and who incurs a work-related illness or injury shall be provided with such compensation as is made available through Workers' Compensation time -loss benefits as provided by Washington State law. ARTICLE 12 OTHER PAID LEAVE 12.1 BEREAVEMENT LEAVE: An employee will be granted three (3) days of bereavement leave for attending funerals in the State of Washington and five (5) days of bereavement leave for out of state funerals of members of the employee's immediate family. 12.1.1 Immediate family under this Article shall be defined as spouse, registered domestic partner, child, stepchild, mother, father, mother/father in-law, brother, sister, brother/sister in-law, grandchildren and grandparents of both the employee and the employee's spouse/registered domestic partner. 12.1.2 An employee will be granted up to (3) days of paid bereavement leave annually (compensated at the employee's current rate of pay). Additional time off for bereavement leave shall be charged against an employee's vacation/holiday, sick leave or compensatory time leave balance at the option of the employee. 12.2 JURY DUTY: An employee shall be granted leave of absence with pay for the purpose of reporting to or serving jury duty. Any juror fees received by the employee for the performance of such duties shall be assigned to the City. Employees normally assigned to swing or graveyard Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 19 of 31 shifts shall be placed on the day shift on days that court appearance is required. If more than 2.5 hours of the day shift remains at the time of release from jury duty, the employee shall report for duty. 12.3 MILITARY LEAVE: An employee who presents official orders requiring his/her attendance for a period of training or other active duty as a member of the United States Armed Forces or the State National Guard shall be entitled to military leave with no loss of pay for a period not to exceed twenty-one (21) work days annually. Authorized leave of absence for additional or longer periods of time for assignment to duty functions shall be without pay and shall be granted by the City. An employee receiving up to twenty-one (21) work days of training or serving on active duty shall receive their regular pay and the amount received from the Federal or State government.(Pursuant to RCW 38.40.060 as may be amended from time to time). Employees recalled to active duty shall be allowed to utilize accrued vacation leave or compensatory time to supplement military pay. Employees do not accrue any paid vacation, sick leave or other paid leave benefits while on active duty. During periods of military conflict, employees are entitled up to fifteen (15) days of unpaid leave before their spouse is deployed or while their spouse is on leave from deployment. 12.4 EMERGENCY LEAVE: In the event of an unforeseen emergency which requires the absence of an employee such as the illness, injury or death of a member of an employee's immediate family, the employee shall notify his or her immediate supervisor as soon as possible of the required absence. Such emergency leave shall be charged to an employee's unused vacation/holiday or compensatory time leave balance. 12.5 ADMINISTRATIVE LEAVE: Any bargaining unit employee may be placed on Administrative Leave (leave with pay) for reasons in the best interest of the City and/or employee (e.g. to conduct an investigation, to diffuse a work-related or personal problem that has the potential for escalation if left unchecked, and/or has a negative effect on department/division operations, and no other solution is available). Administrative Leave is not intended to be used in lieu of discipline. The City may place certain reasonable restrictions on an employee on Administrative Leave and require him/her to be available during his/her normal work schedule to respond by telephone within two (2) hours. Employees may be provided a pager, if needed. Employees may be placed on a different schedule to be determined by the Chief when they are placed on Administrative Leave. If an employee is or will be unavailable during the scheduled time frame, then a vacation leave request, or in the case of illness or injury, a sick leave request must be turned in to cover the amount of time the employee is or will be unavailable. 12.6 DOMESTIC VIOLENCE LEAVE — Pursuant to State Law, Domestic Violence Leave provides additional leave rights to employees who are victims of domestic violence, sexual assault, or stalking, or who are family members of victims. It entitles employees to take leave to receive medical treatment, attend legal proceedings, or address safety concerns arising out of domestic violence, sexual assault, or stalking as outlined in City Human Resources Policy 3-20-19. ARTICLE 13 RETIREMENT BENEFITS 13.1 Each employee shall be enrolled in the Washington State Retirement system for which he or she qualifies. Only for the purposes of federal income taxation, the gross income of each employee shall be reduced by the amount of employee contributions to the respective retirement system, which is paid by the City. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 20 of 31 ARTICLE 14 INSURANCE BENEFITS 14.1 MEDICAL INSURANCE: The City shall make medical insurance coverage available to employees and their dependents as follows: LEOFF Trust Plan F. Kaiser Permanente for Employees and Dependents; $20 Copay Plan/ $200 Deductible Plan. Another plan of substantially similar or better coverage 14.2 INSURANCE PREMIUM PAYMENTS: Payment of insurance premiums shall be made as follows: Employee premium paid in full by the City. Employees shall pay ten percent (10%) of the dependent premium for either of the two plans. Effective upon ratification, the City will offer medical coverage to dependents of employees in Domestic partnerships that have fled their status with the State as required by law and have met the minimum affidavit requirements. 14.3 STIPEND IN LIEU OF MEDICAL COVERAGE - An employee who waives the right to obtain medical insurance coverage through the City and who provides proof of credible coverage through his/her spouse or other source shall be entitled to receive a stipend as follows: Employee Only $150.00 Employee & Spouse $300.00 Employee, Spouse & 1 Dependent $350.00 Employee, Spouse & 2 Dependents $400.00 Employee & 1 Dependent $300.00 Employee & 2 Dependents $350.00 Employees shall be required to notify Human Resources, in writing, during open enrollment, of their desire to waive medical coverage, or at any time during the year if a qualifying event occurs which would change their status (e.g. marriage, divorce, spouse loss of job or medical coverage). For initial implementation of this benefit for those who elect to waive coverage, the payment of the stipend will not be retroactive to January 1, 2009, but will become effective the first pay period of the next month following ratification of the agreement. Since both LEOFF Trust and Kaiser Permanente underwriting requirements require a 75% participation rate, in the event that there is less than a 75% participation rate due to employees waiving medical coverage, the City may cease offering the stipend due to the adverse impact upon those insured. 14.4 DENTAL INSURANCE: The City shall provide the same benefit levels as are contained in the Washington Dental Service Plan F dental insurance coverage for employees and their dependents and provide for full payment of insurance premiums. 14.5 DISABILITY: Employees, who are covered by the Washington State Retirement System commonly known as LEOFF II, shall enroll to receive Long Term Disability Insurance coverage. The City shall pay a maximum of $30.00 per month per eligible and enrolled employee toward premium costs. The remainder of all premium costs shall be borne by the enrolled employee and Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 21 of 31 shall be paid to the insurance company through payroll deductions authorized by each enrolled employee. The Guild shall select the LTD plan under which they will be enrolled. 14.7 INSURANCE COMMITTEE: The Insurance Benefits Committee shall be comprised of the following members: Mayor or designee, Human Resources Manager, or designee, Administrative Services Director or designee, one employee selected by the non -represented management and professional employees, and one individual selected by each of the recognized unions. The Committee shall elect a chair and any other officers it deems appropriate. ARTICLE 15 CLOTHING AND UNIFORM CLEANING ALLOWANCE 15.1 PURCHASE OF UNIFORMS: The City shall establish a Clothing Allowance Fund for the Bremerton Police Department. Each employee shall be furnished uniforms as designated by the Chief of Police or designee. Such uniforms shall be replaced on an as -needed basis from the Clothing Allowance Fund, as determined by the Police Chief or designee. All uniforms purchased by the City remain the property of the City 15.2 CLOTHING ALLOWANCE: Effective January 1, 2016 an annual clothing allowance equal to six hundred twenty-five dollars ($625) per year will be provided to non -uniformed, sworn personnel. Effective January 1, 2017, the annual clothing allowance will increase to six hundred seventy-five dollars ($675). Such allowance shall be paid one-half during the months of January and July. In the event an employee is transferred to the Detective Division and is assigned as a Detective, he/she will receive a pro -rata clothing allowance payment. If an employee in this unit separates from employment, a pro -rata amount will be deducted from his final paycheck. The City shall withhold the necessary federal income tax from the clothing allowance as required by the Federal Tax Code as now written or hereafter amended. 15.3 DRY CLEANING FOR UNIFORMED MEMBERS (OPERATIONS DIVISION): The City will provide dry-cleaning for two (2) uniforms per week for uniformed guild members and have the patrol jacket laundered no more often than once per month in the event that a member's jacket becomes excessively soiled. 15.4 NON -UNIFORMED MEMBERS (SUPPORT SERVICES DIVISION) CLEANING ALLOWANCE: Effective July 1, 2009 the City will provide non -uniformed members an annual cleaning allowance of five -hundred fifty dollars ($550.00) payable in the amount of two hundred and seventy-five dollars ($275.00) during January and July. Should an employee transfer out of Support Services into Operations, they will be eligible for dry cleaning services provided by the City beginning when the next date for payment of cleaning allowance would be due them. The City shall withhold the necessary federal income tax from the cleaning allowance as required by the Federal Tax Code as now written or hereafter amended. 15.5 MOTORCYCLE BOOTS: The City shall provide the sum of two hundred fifty dollars ($250.00) to Motorcycle Officers for the purchase of motorcycle boots. After initial issue, replacement moneys will be approved only after the Police Chief or designee authorizes such replacement based on wear/tear of motorcycle boots. 15.6 FOOTWEAR ALLOWANCE. Effective January 2015, the City will provide employees assigned to Patrol, SOG and SWAT the sum of three hundred dollars ($300.00) for the purchase of footwear every two years. Payable every odd numbered year beginning 2015 on the pay period ending January 315 Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 22 of 31 15.6.1 New employees are not entitled to footwear allowance until they have passed their probationary period. They will receive their first footwear allowance the first odd numbered year after passing probation. ARTICLE 16 PERSONNEL PRACTICES 16.1 DEFINITIONS: For the purpose of interpreting the provisions of this Agreement, the following definitions shall apply: 16.1.1 PROBATIONARY EMPLOYEE: All employees serve a twelve (12) month probationary period commencing upon the initial date of hire for certified officers, and in the case of non -certified personnel, twelve (12) months from the date of graduation from the Police academy. During this time the employee may be discharged at the sole discretion of the City, consistent with applicable Civil Service Rules and Regulations (Section 12 -PROBATION) and without recourse to the grievance procedure. 16.1.2 PROMOTIONAL PROBATION; A twelve (12) month period commencing upon the initial date of a regular promotional appointment during which a promoted employee who is unable to perform the duties of the higher level position shall be returned to his or her previous classification at the time of appointment at the sole discretion of the City, consistent with applicable Civil Service Rules and Regulations (Section 12 — PROBATION) and without recourse to the grievance procedure. 16.1.3 LEOFF H EMPLOYEE: An employee who qualifies for and is a member of the Washington State Retirement System commonly known as "LEOFF II". 16.1.4 BASE RATE OF PAY: The base pay rate for an employee as listed in Appendix "A" excluding longevity and any other premium pay. 16.2 INDEMNIFICATION OF EMPLOYEES: The City shall provide legal defense and will pay all legitimate claims, settlements, judgments, and associated costs for employees and their marital communities named as parties or defendants in claims or lawsuits as a result of acts or omissions made in the good faith performance of the City's business. 16.3 PROVISIONAL APPOINTMENT: Any employee who is appointed to a position classification by the Chief of Police on a provisional basis shall be paid the established compensation for such position classification. 16.4 DEPARTMENT POLICY MANUAL AND POLICY CHANGES: The Police Department Policy Manual will be distributed to all bargaining unit employees. The employee will acknowledge receipt of and will become knowledgeable of the Manual's or Policy's contents. All revisions to the Manual or Policy that apply to members of the bargaining unit will be provided to employees for inclusion in the Manual. Further, the Department will inform the Guild of policy revisions prior to enactment. 16.5 POLICE OFFICERS INTERVIEW GUIDELINES: The Safety of our community and its citizens, plus the integrity and reputation of the Police Department depends to a great extent on the manner in which the members of the department perform their varied and difficult duties. To ensure that internal investigations are conducted in a manner conducive to good order and discipline, and also observe and protect the individual rights of each member of the Department, the following rules are hereby established: Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 23 of 31 16.5.1 The interview of any Department member shall be conducted at a reasonable hour, preferably when the member is on duty and/or during daylight hours, unless the urgency of the investigation dictates otherwise. If such interview occurs during off-duty time of the member being interviewed, the member shall be compensated for his or her off-duty time in accordance with the overtime provisions of this Agreement. 16.5.2 The interview shall take place at a location designated by the investigation officer, preferably at the Police Department. 16.5.3 Forty-eight hours before any questioning commences, a member of the Police Department shall be advised in writing in the event that person becomes a suspect in an administrative investigation, including the incident which is the subject of the investigation, and the name(s) of all complaining parties. The employee under investigation must, at the time of an interview, be informed of the name of the person in charge of the investigation and the name of the person conducting the interview. 16.5.4 The member being interviewed shall be informed of his or her right to and be afforded an opportunity and the necessary facilities to contact a Guild representative prior to commencement of the interview. The member's representative may be present during the interview. Nothing herein shall in any way restrict the rights of the representative with the employee during the process of the interview. 16.5.5 The interview shall be conducted in the most expedient manner consistent with the scope and gravity of the subject matter of the interview. The member shall be permitted reasonable periods to attend to personal necessities. 16.5.6 The member shall not be subjected to offensive language or intimidation during the process of the interview. No promises or rewards shall be made to the employee as an inducement to answering questions. When the member is being interviewed in a non- criminal matter for violation of departmental rules, regulations or orders, that member shall answer truthfully all questions concerning the investigation posed to him or her by the interviewing officer. When the member refuses to answer such questions, he or she will be informed that his or her refusal to answer may become the subject for disciplinary action. 16.5.7 A member shall not be required to take a truth verification test as part of the interview process. 16.5.8 Nothing contained in any of the above guidelines shall restrict and/or limit the authority of the Chief of Police or designee in the performance of his or her duties and responsibilities as the Chief Administrator of the Bremerton Police Department. 16.5.9 No tape recording will be made of the interview without prior advisement. There will be no off-the-record questions during a recorded interview, unless the parties mutually agree. If the Department tape records the interview, a taped copy of the complete interview of the employee, noting all recess periods, may be furnished, at the cost of the tape, upon request of the employee. If the interviewed employee is subsequently disciplined and any part of any recording is transcribed by the employer, the employee shall be given a complimentary copy thereof. The Guild may be allowed to tape record the interview. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 24 of 31 16.5.9 The employee will be required to answer any questions involving non -criminal matters under investigation and will be afforded all rights and privileges to which he is entitled under the laws of the State of Washington or the United States. Prior to any questioning, the employee will be notified in writing and acknowledge receipt of the following: 16.5.9 (A) "You are about to be questioned as part of an official administrative investigation. You will be asked specific questions that will relate directly, specifically and narrowly to the performance of your official duties or fitness as an employee of this agency. The responses made in this interview cannot be used against you in a criminal proceeding. You are ordered and required to answer all questions fully, truthfully, and to the best of your ability and knowledge. If you refuse to answer questions, you will be subject to department charges that include insubordination and will result in disciplinary action up to and including termination." 16.5.9 (B) If at any time during potentially criminal the investigation shall also Miranda Rights. the interview process the investigation turns employees who are subject to a criminal be so advised and shall be advised of their 16.5. 10 When the member being interviewed is in custody, or is likely to be placed in custody as a result of the interview, that person shall be informed of his or her Constitutional Rights prior to commencement of the interview. The member may request a postponement of the initial interview to contact an attorney. 16.5.11 All interviews shall be limited in scope to activities, circumstances, events, conduct or actions which pertain to the incident which is the subject of the investigation. Nothing in this section shall prohibit the Employer from questioning the employee about information which is developed during the course of the interview. 16.5.12 Use of Deadly Force: When an employee uses deadly force pursuant to RCW 9A.16.010 (2), the employee shall not be required to make a written statement for forty-eight (48) hours after the incident. The officer may be required to verbally report a brief summary of the facts of the incident to include information for securing evidence, identifying witnesses, apprehending suspects, securing search warrants (clarification only), or any other exigent circumstances. The affected employee may waive the forty-eight (48) hour requirement. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31 /2020 Page 25 of 31 ARTICLE 17 MANAGEMENT RIGHTS 17.1 Any and all rights concerned with the management and operation of the Police Department are exclusively that of the City unless otherwise provided by the terms of this Agreement. The City has the right, among other actions, to adopt rules for the operation of the Department and conduct of the employees, to discipline, suspend or discharge employees for just cause, to assign work and determine duties of employees, to determine number of personnel to be assigned duty at any time, to determine and introduce new work methods or facilities to increase productivity for operation of the Department and to perform all of the functions not otherwise expressly limited by this Agreement; provided, nothing herein shall be construed as a waiver of collective bargaining rights conferred on the parties by RCW 41.56. 17.2 The Chief of Police may change Crime Scenes/Evidence Technician and/or Community Resource Officer to civilian positions, provided that the same number of sworn police officer positions are maintained in the Department. ARTICLE 18 PERFORMANCE OF DUTY/NO STRIKE 18.1 The City and the Guild recognize that the public interest requires the efficient and uninterrupted performance of all City services and pledge their best efforts to avoid or eliminate any conduct contrary to this objective. Nothing in this Agreement shall be construed to grant an employee the right to strike or to refuse to perform his or her duties to the best of his or her abilities. During the term of this Agreement, the Guild and/or membership shall not cause, engage in or sanction any work stoppage, strike, walkout, sit-down, stray -in, slowdown, sick -in, curtailment of work, or interference with City operations at any location whatsoever; provided, that nothing herein shall be interpreted as to prohibit lawful information picketing. Employees who engage in any of the foregoing or similar activities shall be subject to immediate disciplinary action up to and including discharge. The City shall not institute any lockout of employees during the term of this Agreement. ARTICLE 19 GRIEVANCE PROCEDURE 19.1. DEFINITIONS: 19.1.1 GRIEVANCE: A grievance is an allegation of a violation of the terms and conditions of this Agreement which is to be resolved through this Grievance Procedure. 19.1.2 CIVIL SERVICE APPEAL (Section 5 -APPEALS): An appeal is an allegation of a violation of the Civil Service Rules that is to be resolved through the Civil Service Appeals procedure and is not resolvable through this Grievance Procedure. 19.1.3 UNFAIR LABOR PRACTICE: An Unfair Labor Practice charge is an allegation of a violation of the Washington State statutes governing public employment labor relations which is to be resolved through the Public Employment Relations Commission's rules and regulations and is not resolvable through this Grievance Procedure. 19.2 STEP 1: An employee who believes that the terms and conditions of this Agreement have been violated shall first discuss the matter with the person who took the action giving rise to the belief with his or her immediate supervisor within fourteen (14) calendar days of the date the action took place or within fourteen (14) days of the date upon which the employee, by due diligence, Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 26 of 31 could reasonably have been expected to know of such action. The person who took the action shall provide the employee with a written response within fourteen (14) calendar days of the date upon which the grievance was discussed with the employee. 19.3 STEP 2: In the event that the person who took the action does not resolve the issue to the satisfaction of the employee at Step 1 of this procedure, the employee shall reduce the matter to writing and shall: 19.3.1 State whether the employee is selecting a Civil Service Appeal or the Grievance Procedure herein as the dispute resolution method to be used to resolve the issue. 19.3.2 In the event the employee selects the Civil Service Appeal method, the employee shall comply with the Civil Service Rules in processing the matter. 19.3.3 In the event the employee selects the Grievance Procedure method, the employee shall reduce the matter to a written grievance and shall state: the section (or sections) of this Agreement which is/are alleged to have been violated; an explanation of the grievance in detail, including dates, actions and such other information necessary to a full investigation of the facts and circumstances giving rise to the grievance; and the remedy sought. 19.3.4 The employee shall have the right to be assisted by an authorized Guild representative in reducing his or her grievance to writing. The employee shall present the written grievance to the immediate superior of the person who responded to Step 1 above within fourteen (14) calendar days of the date the employee received a written response at Step 1 of this procedure. In the event the Police Chief responded at Step 1 above, the employee shall proceed to Step 4 of this Grievance Procedure. The immediate superior may meet with the employee and the employee's Guild Representative within fourteen (14) calendar days after receipt of the written grievance for the purpose of considering the matter. The immediate superior shall reduce his or her decision to writing and shall transmit the decision to the employee with a copy to the Guild representative within fourteen (14) calendar days of receiving the written grievance or of meeting with the employee and the Guild Representative. 19.4 STEP 3: In the event that the immediate superior does not resolve the grievance to the satisfaction of the employee at Step 2 of this procedure, the employee shall transmit a copy of the original grievance along with a copy of the written response received at Step 2 to the Police Chief within fourteen (14) calendar days of receipt of the immediate superior's written response. The Police Chief may convene a meeting with the Guild representative in an attempt to resolve the grievance. The Police Chief shall reduce his or her decision to writing within fourteen (14) calendar days of the Chiefs personal receipt of the grievance or, if a meeting was held, within fourteen (14) calendar days after meeting with the Guild Representative and transmit the decision to the Guild. 19.5 STEP 4: In the event that the Police Chief does not resolve the grievance at Step 3 of this procedure, the Guild may request arbitration of the issue by written notification to the Human Resources Manager within thirty (30) calendar days of receipt of the Police Chiefs decision. In the event the Guild does not request arbitration of the issue within the thirty (30) calendar day period, the grievance shall be deemed withdrawn. Prior to the selection of an arbitrator and submission of the grievance for hearing by said arbitrator, the Human Resources Manager shall informally review the grievance and determine whether said grievance may be adjusted to the Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 27 of 31 satisfaction of the employee. The Human Resources Manager shall have fourteen (14) calendar days in which to review and seek adjustment of the grievance. 19.6 SELECTION OF ARBITRATOR: A neutral arbitrator shall be selected by mutual agreement or through a mutually agreeable process. In the event the parties cannot agree, either party may petition the Public Employment Relations Commission for a panel of arbitrators. 19.7 POWERS AND DUTIES OF THE ARBITRATOR: It shall be the duty of the arbitrator to conduct a hearing on the issue or issues submitted by the parties for decision. The hearing shall be kept informal and private. The arbitrator shall interpret the provisions of this Agreement as they apply to the issue or issues submitted for decision and shall not add to, subtract from, nor in any way otherwise alter or recommend the alteration of the terms and conditions of the Agreement in deciding the matter. Within thirty (30) days of the close of the hearing or submission of briefs, whichever occurs later, the arbitrator shall render a written decision, which shall be binding upon the parties. The arbitrator shall conduct the arbitration hearing in conformance with the Voluntary Rules for Labor Arbitration of the American Arbitration Association. 19.8 COSTS OF ARBITRATION: The expenses of the neutral arbitrator shall be borne equally by the parties. Each party shall singly bear all costs related to preparing and presenting its own case before the arbitrator, including costs of witnesses. The party desiring a record of the proceedings shall bear the cost of obtaining such record. 19.9 TIME LIMITS: Time limits established in this procedure shall be strictly adhered to but may be waived by mutual agreement of the Guild and the City. All procedures contained herein shall be complied with as expeditiously as practicable. ARTICLE 20 SEVERABILITY 20.1 In the event that any provision of this Agreement is held invalid by any tribunal of competent jurisdiction, the remaining provisions of this Agreement shall not be held invalid and shall remain in full force and effect. The Guild and the City shall immediately meet and attempt to renegotiate any provision found invalid. ARTICLE 21 ENTIRE AGREEMENT 21.1 The Guild and the City acknowledge that each has had the unlimited right and opportunity to make proposals with respect to any matter deemed a proper subject for collective bargaining. The results of the exercise of that right are set forth in this Agreement. Therefore, the City and the Guild each voluntarily and unqualifiedly agree to waive the right to oblige the other party to bargain with respect to any subject or matter not specifically covered by the Articles of this Agreement during the term of this Agreement, except as mutually agreed upon. The Employer shall not unilaterally change any mandatory subject of bargaining without providing the union with prior notice and the opportunity to bargain. ARTICLE 22 CONFLICTING PROVISIONS 22.1 In the event that any provision of this Agreement is found to be in conflict with any other Resolution, Ordinance, Policy, Regulation or Rule of the City, the provision of this Agreement shall prevail. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 28 of 31 ARTICLE 23 LABOR MANAGEMENT COMMITTEE 23.1 LABOR MANAGEMENT: The Employer and the Guild agree that a need exists for closer cooperation between labor and management. To accomplish this objective, the Employer and the Guild agree that no more than four (4) duly authorized representatives of the Guild shall function as one-half ('/2) of a Labor -Management Committee, the other half being no more than four (4) certain representatives of the Employer named for that purpose. The committee shall meet as needed for the purpose of discussing and facilitating the resolution of all problems, which may arise between the parties. The committee shall be chaired by a member elected by the committee. 23.2 Should the Guild and Employer mutually agree to change, add, or delete any provision of this Agreement, policies, rules or other matters, such change shall be set forth in writing. ARTICLE 24 PREMIUM PAY 24.1 K-9 STIPEND: Effective upon assignment, a K-9 Officer shall receive as compensation for the care and maintenance of his/her dog and equipment, a K-9 stipend of three (3) hours per week at 48% of a Step 5 Police Officer overtime rate. 24.2 FIELD TRAINING OFFICER PREMIUM. Field Training Officers shall receive a premium equal to three percent (3%) of their base monthly rate of pay for time spent performing the duties of field training officer. This premium may not be pyramided for those officers receiving the MPO premium. Corporals are not eligible for the FTO premium. 24.3 SCHOOL RESOURCE OFFICER (SRO). Effective January 1, 2018 School Resource Officers shall receive a premium equal to three percent (3%) of their base monthly rate of pay while preforming the duties of the SRO. Corporals are not eligible for SRO premium. This premium shall not be pyramided with any other premium pay. 24.4 BILINGUAL PREMIUM: Employees who demonstrate, to the satisfaction of the Department the ability to communicate in Spanish, Main, or American Sign Language shall receive a premium equal to three percent (3%) of their base monthly rate of pay. COMPENSATION 25.1 DEFERRED COMPENSATION: The City shall match the payroll deduction of any written request by an employee covered by this Agreement, in an amount not to exceed five percent (5%) effective January 1, 2016 and effective January 1, 2017 an amount not to exceed five and one half percent (5.5%) of the employees base monthly pay rate. This shall not apply to LEOFF II employees who have completed 15 or more years with the City. 25.2 LEOFF H EMPLOYEES WHO HAVE COMPLETED FIFTEEN (15) OR MORE YEARS WITH THE CITY — LEOFF II employees shall be required to contribute five and one half (5.5%) percent in 2017 into Deferred Compensation. This does not preclude a LEOFF Il employee from deferring more than the required contribution. Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 29 of 31 25.3 SWORN OFFICERS WHO HAVE NOT COMPLETED FIFTEEN (15) OR MORE YEARS WITH THE CITY, BUT WHO ARE ELIGIBLE FOR RETIREMENT WITHIN FIVE (5) YEARS - These employees will be eligible to receive five and one half percent (5.5%) City contribution to deferred compensation with no requirement to match, as long as they are not receiving longevity pay for 16 or more years of service (see Article 5.2). Employees are responsible for notifying Human Resources when they become eligible. 25.4 EMPLOYEES WHO ARE NOT ELIGIBLE FOR ENROLLMENT IN THE LEOFF RETIREMENT SYSTEM: Employees who are not eligible to enroll in the LEOFF Retirement System shall receive a City deferred compensation contribution equal to the City's contribution to the LEOFF Retirement System. 25.3 LIFE INSURANCE: The City shall provide life insurance coverage in an amount equal to two hundred thousand ($200,000) with a mutually agreed upon carrier. 25.4 RETIREMENT MEDICAL SAVINGS ACCOUNTS: The City shall contribute one hundred dollars ($100.00) per month on behalf of each employee to a Health Reimbursement Arrangement (HRA) through Voluntary Employee Benefits Association (VEBA) trust. In the event it is determined that the $100.00 contribution will cause the City to pay Cadillac taxes, both parties agree that this article will be opened for negotiations. The parties will negotiate a reduction in the amount that is contributed to the HRA and a way to compensate employees for the amount of the reduction. The employees shall continue to contribute $30.00 per month to their HRANEBA account. ARTICLE 26 EDUCATIONAL INCENTIVE 26.1 Employees shall be eligible to receive Educational Incentive pay according to the following: Associate's degree or equivalent (90 quarter or 60 semester hours) Two percent (2%) Bachelor's Degree Four percent (4%) 26.2 Degrees and credit hours earned shall be documented through official transcripts from accredited colleges or universities. It shall be understood that for the 90 quarter or 60 semester hours to be accepted, they must be courses required in the pursuit of an Associates or Bachelors degree from an accredited college or university. 26.3 Educational Incentive pay shall not be cumulative and it shall be the responsibility of the employee requesting educational incentive pay to provide the City with certified transcripts of his/her hours earned and/or degree(s) awarded. Educational Incentive shall be paid to the employee beginning the next pay period following receipt of the documentation, and shall not be retroactive. 26.4 Officers on probationary status shall not be eligible for educational incentive pay. ARTICLE 27 TERM 27.1 This Agreement shall become effective January 1, 2018, and shall remain in effect through December 31, 2020, and may be extended thereafter by mutual agreement. It is further agreed that the City or the Guild may request reopening of this Agreement any time within six (6) Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 30 of 31 months of the expiration for the purpose of negotiating changes to be effective following the expiration of this Agreement with such notice to be in writing to the other party. This Agreement is hereby submitted to the Bremerton City Council for approval. Upon the approval of the Council, this Agreement shall become binding upon the City, the Guild and all of the employees in the bargaining unit covered by this Agreement. APPROVED by the Bremerton City Council on the SIGNED THIS DAY OF , 2017 CITY OF BREMERTON: Charlotte Nelson Human Resources Manager Steven Strachan, Police Chief Honorable Patty Lent, Mayor rvaVOki I Shannon Corin, City Clerk APPROVED AS TO FORM: Roger Lubovich, City Attorney Collective Bargaining Agreement City of Bremerton and the BPOG 1/1/2018 —12/31/2020 Page 31 of 31 day of 2017. BREMERTON POLICE OFFICERS GUILD: Beau Ayers, President Steven Polonsky,Vice President Member Board of Directors Member Board of Directors Member Board of Director APPENDIX A TO THE AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND THE BREMERTON POLICE OFFICERS GUILD Effective January 1, 2018 to December 31, 2018 BPOG Pay Plan with 3.00% CPI Adjustment for 2018 Effective January 1, 2018, the base rates of pay for employees shall be as follows: Annual salary based on 2088 hours per year for 2018 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. Step 1 Step 2 Step 3 Step 4 Step 5 Corporal/MPO Police Officer Annual 69,927.12 72,558.00 75,898.80 79,281.36 86,150.88 90,493.92 Monthly 5,827.26 6,046.50 6,324.90 6,606.78 7,179.24 7,541.16 Semi -Monthly 2,913.63 3,023.25 3,162.45 3,303.39 3,589.62 3,770.58 Hourly 33.49 34.75 36.35 37.97 41.26 43.34 +Longevity Base +1.25% Hourly 33.91 35.18 36.80 38.44 41.78 43.88 Base +1.25% Semi -Monthly 2,950.17 3,060.66 3,201.60 3,344.28 3,634.86 3,817.56 Base +2.50% Hourly 34.33 35.62 37.26 38.92 42.29 44.42 Base +2.50% Semi -Monthly 2,986.71 3,098.94 3,241.62 3,386.04 3,679.23 3,864.54 Base +9.25% Hourly 36.59 37.96 39.71 41.48 45.08 47.35 Base + 9.25% Semi -Monthly 3,183.33 3,302.52 3,454.77 3,608.76 3,921.96 4,119.45 Base +10.50% Hourly 37.01 38.40 40.17 41.96 45.59 47.89 Base +10.50% Semi -Monthly 3,219.87 3,340.80 3,494.79 3,650.52 3,966.33 4,166.43 Base +12.00% Hourly 37.51 38.92 40.71 42.53 46.21 48.54 Base +12.00% Semi -Monthly 3,263.37 3,386.04 3,541.77 3,700.11 4,020.27 4,222.98 Deferred Comp. 5.50% 160.25 166.28 173.93 181.69 197.43 207.38 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. Step 1 Step 2 Step 3 Step 4 Step 5 (OIC) Sergeant Annual 96,549.12 98,658.00 100,725.12 102,938.40 105,005.52 Monthly 8,045.76 8,221.50 8,393.76 8,578.20 8,750.46 Semi -Monthly 4,022.88 4,110.75 4,196.88 4,289.10 4,375.23 Hourly 46.24 47.25 48.24 49.30 50.29 +Longevity Base +1.25% Hourly 46.82 47.84 48.84 49.92 50.92 Base +1.25% Semi -Monthly 4,073.34 4,162.08 4,249.08 4,343.04 4,430.04 Base +2.50% Hourly 47.40 48.43 49.45 50.53 51.55 Base +2.50% Semi -Monthly 4,123.80 4,213.41 4,302.15 4,396.11 4,484.85 Base +9.25% Hourly 50.52 51.62 52.70 53.86 54.94 Base + 9.25% Semi -Monthly 4,395.24 4,490.94 4,584.90 4,685.82 4,779.78 Base +10.5% Hourly 51.10 52.21 53.31 54.48 55.57 Base +10.5% Semi -Monthly 4,445.70 4,542.27 4,637.97 4,739.76 4,834.59 Base +12.00% Hourly 51.79 52.92 54.03 55.22 56.32 Base +12.00% Semi -Monthly 4,505.73 4,604.04 4,700.61 4,804.14 4,899.84 Deferred Comp. 5.50% 221.26 226.09 230.83 235.90 240.64 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. APPENDIX A TO THE AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND THE BREMERTON POLICE OFFICERS GUILD Effective January 1, 2019 to December 31, 2019 BPOG Pay Plan with 2.5% CPI Adjustment for 2019 Effective January 1, 2019, the base rates of pay for employees shall be as follows: Annual salary based on 2088 hours per year for 2019 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. Step 1 Step 2 Step 3 Step 4 Step 5 Corporal/MPO Police Officer Annual 71,681.04 74,374.56 77,798.88 81,264.96 88,301.52 92,748.96 Monthly 5,973.42 6,197.88 6,483.24 6,772.08 7,358.46 7,729.08 Semi -Monthly 2,986.71 3,098.94 3,241.62 3,386.04 3,679.23 3,864.54 Hourly 34.33 35.62 37.26 38.92 42.29 44.42 +Longevity Base +1.25% Hourly 34.76 36.07 37.73 39.41 42.82 44.98 Base +1.25% Semi -Monthly 3,024.12 3,138.09 3,282.51 3,428.67 3,725.34 3,913.26 Base +2.50% Hourly 35.19 36.51 38.19 39.89 43.35 45.53 Base +2.50% Semi -Monthly 3,061.53 3,176.37 3,322.53 3,470.43 3,771.45 3,961.11 Base +9.25% Hourly 37.51 38.91 40.71 42.52 46.20 48.53 Base + 9.25% Semi -Monthly 3,263.37 3,385.17 3,541.77 3,699.24 4,019.40 4,222.11 Base +10.50% Hourly 37.93 39.36 41.17 43.01 46.73 49.08 Base +10.50% Semi -Monthly 3,299.91 3,424.32 3,581.79 3,741.87 4,065.51 4,269.96 Base +12.00% Hourly 38.45 39.89 41.73 43.59 47.36 49.75 Base +12.00% Semi -Monthly 3,345.15 3,470.43 3,630.51 3,792.33 4,120.32 4,328.25 Deferred Comp. 5.50% 164.27 170.44 178.29 186.23 202.36 212.55 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. Step 1 Step 2 Step 3 Step 4 Step 5 (OIC) Sergeant Annual 98,971.20 101,142.72 103,272.48 105,527.52 107,657.28 Monthly 8,247.60 8,428.56 8,606.04 8,793.96 8,971.44 Semi -Monthly 4,123.80 4,214.28 4,303.02 4,396.98 4,485.72 Hourly 47.40 48.44 49.46 50.54 51.56 +Longevity Base +1.25% Hourly 47.99 49.05 50.08 51.17 52.20 Base +1.25% Semi -Monthly 4,175.13 4,267.35 4,356.96 4,451.79 4,541.40 Base +2.50% Hourly 48.59 49.65 50.70 51.80 52.85 Base +2.50% Semi -Monthly 4,227.33 4,319.55 4,410.90 4,506.60 4,597.95 Base +9.25% Hourly 51.78 52.92 54.04 55.21 56.33 Base + 9.25% Semi -Monthly 4,504.86 4,604.04 4,701.48 4,803.27 4,900.71 Base +10.5% Hourly 52.38 53.53 54.65 55.85 56.97 Base +10.5% Semi -Monthly 4,557.06 4,657.11 4,754.55 4,858.95 4,956.39 Base +12.00% Hourly 53.09 54.25 55.40 56.60 57.75 Base +12.00% Semi -Monthly 4,618.83 4,719.75 4,819.80 4,924.20 5,024.25 Deferred Comp. 5.50% 226.81 231.79 236.67 241.83 246.71 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. APPENDIX A TO THE AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND THE BREMERTON POLICE OFFICERS GUILD Effective January 1, 2020 to December 31, 2020 BPOG Pay Plan with 2.5% CPI Adjustment for 2020 Effective January 1, 2020, the base rates of pay for employees shall be as follows: Annual saiary based on 2096 hours per year for 2020. Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Corporal/MPO Police Officer Annual 73,758.24 76,524.96 80,046.24 83,609.44 90,861.60 95,430.88 Monthly 6,146.52 6,377.08 6,670.52 6,967.45 7,571.80 7,952.57 Semi -Monthly 3,073.26 3,188.54 3,335.26 3,483.73 3,785.90 3,976.29 Hourly 35.19 36.51 38.19 39.89 43.35 45.53 +Longevity Base +1.25% Hourly 35.63 36.97 38.67 40.39 43.89 46.10 Base +1.25% Semi -Monthly 3,111.69 3,228.71 3,377.18 3,527.39 3,833.06 4,026.07 Base +2.50% Hourly 36.07 37.42 39.14 40.89 44.43 46.67 Base +2.50% Semi -Monthly 3,150.11 3,268.01 3,418.23 3,571.06 3,880.22 4,075.85 Base +9.25% Hourly 38.45 39.89 41.72 43.58 47.36 49.74 Base + 9.25% Semi -Monthly 3,357.97 3,483.73 3,643.55 3,805.99 4,136.11 4,343.96 Base +10.50% Hourly 38.88 40.34 42.20 44.08 47.90 50.31 Base +10.50% Semi -Monthly 3,395.52 3,523.03 3,685.47 3,849.65 4,183.27 4,393.74 Base +12.00% Hourly 39.41 40.89 42.77 44.68 48.55 50.99 Base +12.00% Semi -Monthly 3,441.81 3,571.06 3,735.25 3,902.05 4,240.03 4,453.13 Deferred Comp. 5.50% 169.03 175.37 183.44 191.61 208.22 218.70 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. Step 1 Step 2 Step 3 Step 4 Step 5 (OIC) Sergeant Annual 101,823.68 104,045.44 106,225.28 108,551.84 110,731.68 Monthly 8,485.31 8,670.45 8,852.11 9,045.99 9,227.64 Semi -Monthly 4,242.66 4,335.23 4,426.06 4,523.00 4,613.82 Hourly 48.58 49.64 50.68 51.79 52.83 +Longevity Base +1.25% Hourly 49.19 50.26 51.31 52.44 53.49 Base +1.25% Semi -Monthly 4,295.93 4,389.37 4,481.07 4,579.76 4,671.46 Base +2.50% Hourly 49.79 50.88 51.95 53.08 54.15 Base +2.50% Semi -Monthly 4,348.33. 4,443.52 4,536.97 4,635.65 4,729.10 Base +9.25% Hourly 53.07 54.23 55.37 56.58 57.72 Base + 9.25% Semi -Monthly 4,634.78 4,736.09 4,835.65 4,941.32 5,040.88 Base +10.5% Hourly 53.68 54.85 56.00 57.23 58.38 Base +10.5% Semi -Monthly 4,688.05 4,790.23 4,890.67 4,998.09 5,098.52 Base +12.00% Hourly 54.41 55.60 56.76 58.00 59.17 Base +12.00% Semi -Monthly 4,751.81 4,855.73 4,957.04 5,065.33 5,167.51 Deferred Comp. 5.50% 233.35 238.44 243.43 248.77 253.76 SERGEANT CLASSIFICATION - Any employee who is promoted to the classification of Sergeant shall be placed at Step 3 of the Sergeant classification, provided, however, an employee hired as a Sergeant through a lateral transfer, having not served as a police officer with the City of Bremerton, may be placed into Step 1 of the Sergeant classification. AGENDA BILL CITY OF BREMERTON 7H CITY COUNCIL SUBJECT: Interagency Agreement Study Session Date: December 13, 2017 (IAA18659) with the State of Washington COUNCIL MEETING Date: December 20, 2017 Administration Office of the Courts for Department: Municipal Court Acceptance of Interpreter Grant Presenter: Dawn Williams Phone: (360)473-5242 SUMMARY: The Bremerton Municipal Court has been the recipient of an Interpreter Grant from the State of Washington, Administrative Office of the Courts for many years. This agreement is renewed on a yearly basis. This document is titled an Interagency Agreement but it more correctly a grant acceptance form. The terms of this Agreement are from July 2017 through June 2018 for partial reimbursement of interpreter services up to a maximum of $2,275.00. ATTACHMENTS: Interagency Agreement IAA18659 between State of Washington, Administrative Office of the Courts and Bremerton Municipal Court. FISCAL IMPACTS (Include Budgeted Amount): Receipt of up to $2,275.00 to recoup partial costs of interpreter expenses. No matching funds are required. STUDY SESSION AGENDA: x❑ No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Interagency Agreement IAA18659 between the State of Washington, Administrative Office of the Courts and Bremerton Municipal Court; and authorize the Court Administrator 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 INTERAGENCY AGREEMENT IAA18659 BETWEEN WASHINGTON STATE ADMINISTRATIVE OFFICE OF THE COURTS AND BREMERTON MUNICIPAL COURT THIS AGREEMENT (Agreement) is entered into by and between the Administrative Office of the Courts (AOC) and Bremerton Municipal Court (Court), for the purpose of distributing funds for court interpreter services expenses to the Bremerton Municipal Court (Court). DEFINITIONS For purposes of this Agreement, the following definitions shall apply: a. "Certified Interpreter" means an interpreter who is certified by the Administrative Office of the Courts, as defined in RCW 2.43.020 (4) or an interpreter certified by the Office of the Deaf and Hard of Hearing ("ODHH") pursuant to WAC 388-818-500, et. seq. The names and contact information of AOC -certified interpreters are found, and incorporated herein by reference, at http://www.courts.wa.gov/program§i_orgs/pos interpret/ The names and contact information of ODHH-certified interpreters are found, and incorporated herein by reference, at htt s://fortress wa. ov/dshs/odhha s/Inter reters/Courtlnter reter.as x b. "Registered Interpreter" means an interpreter who is registered by the Administrative Office of the Courts, as defined in RCW 2.43.020 (6). The names and contact information of registered interpreters are found, and incorporated herein by reference, at http://www_.courts.wa gov/programs orgs/pos_interpret/. c. "Qualified Interpreter" means a spoken language interpreter as defined in RCW 2.43.020 (2), or sign language interpreter as defined in RCW 2.42.110 (2). d. "Qualifying Event" means a proceeding or event for which an interpreter is appointed by an appointing officer pursuant to chapter 2.42 RCW and/or chapter 2.43 RCW. 2. PURPOSE The purpose of this Agreement is to engage the services of the Court to improve the quality and availability of court interpreter services for Limited English Proficient ("LEP"), deaf, and hard of hearing persons in accordance with chapters 2.42 and 2.43 RCW. a. These funds are intended to address the Court's following needs: • Financial need -- i.e.; the gap between the Court's available financial resources and the costs to meet its need for certified, registered, and qualified interpreters; and • Interpreter need — i.e., the gap between the level of the LEP, deaf, and hard of hearing public's need for language access to the Court's (i.e., the level of interpreter need) and the available interpreter pool (in particular, certified, registered, and qualified interpreters in the Court's most frequently needed languages). IAA18659 Page 1 of 11 3. DESCRIPTION OF SERVICES TO BE PROVIDED a. The Court agrees to actively participate in the vision and structure for state funding of interpreter services, and to track and provide interpreter cost and usage data needed to demonstrate the impact of the funding. In particular, the Court agrees to submit electronically with each request for reimbursement, completed Interpreter Services Funding Data ("ISF Data") reflecting interpreter services and costs. The Court will submit ISF Data representing both Qualifying and non -qualifying Events. b. Electronic data shall be submitted quarterly following the schedule as outlined in Section 5c below and using the online application and instructions found, and incorporated herein by reference, at: http://inside.courts.wa.gov/index,cfm?fa=controller.showPa e&c�folder=courtlnterpreter& file=interpreter5tateFundinq. c. The Court will ensure that the interpreter funding is used for reimbursement of costs paid to certified, registered; and qualified interpreters for Qualifying Events pursuant to Exhibit A, which is incorporated herein by reference. d. The Court agrees to partner closely with the AOC Interpreter Program, the Interpreter Commission (Commission), and neighboring courts to identify and implement innovations and best and promising practices for providing interpreter services (e.g., innovations in scheduling of interpreters, sharing of translated resources, training of staff and judges), with a view to improving interpreter services and the service infrastructure statewide. e. The Court may elect to pay for interpreter services that are not in accordance with the provisions of Exhibit A as set forth; however, such payments will not be reimbursed. f. The Court agrees to submit and implement its locally -approved Language Access Plan to the designated AOC Program Manager by April 30, 2018 using the model Language Access Plan template incorporated herein by reference at: https //www.courts.wa.gov/content/publicUpJoad/Interpreters/LAP D_e_skBook - Appendix B- Court User Template.docx, which is incorporated into this Agreement. g. As a condition of receiving future funding under this Agreement, the Court agrees to annually implement, maintain, and update its Language Assistance Plan (LAP) and to have such plan annually reviewed and approved by the Commission in accordance with language access policies the Commission may require to be addressed in such LAP(s). 4. PERIOD OF PERFORMANCE The execution of this Agreement shall constitute a ratification of an earlier verbal agreement between the parties that is now set forth in writing. Accordingly, the beginning date of performance under this Agreement is July 1, 2017, regardless of the date of execution and which shall end on June 30, 2018. 5. COMPENSATION a. The Court shall be reimbursed a maximum of $2,275 for interpreter services costs incurred during the period of July 1, 2017 to June 30, 2018. No reimbursement shall be made under this Agreement for interpreting services provided after June 30, 2018. IAA18659 Page 2 of 11 b. The Court shall receive payment for no more than 50 percent of its costs for interpreter services as set forth in Exhibit A, which is attached and incorporated into this Agreement. c. The Court shall not be reimbursed for interpreter services costs for Qualifying Events until properly -completed paper A-19 invoices and corresponding electronic ISF Data are received and approved by AOC, pursuant to the following schedule: 1. Reflecting Qualifying and non -qualifying Events occurring between July 1, 2017 and September 30, 2017, must be received by the AOC no later than December 31, 2017. 2. Reflecting Qualifying and non -qualifying Events occurring between October 1, 2017 and December 31, 2017, must be received by the AOC no later than March 1, 2018. 3. Reflecting Qualifying and non -qualifying Events occurring between January 1, 2018 and March 30, 2018, must be received by the AOC no later than April 30, 2018. 4. Reflecting Qualifying and non -qualifying Events occurring between April 1, 2018 and June 30, 2018, must be received by the AOC no later than July 31, 2018. d. If this agreement is terminated, the Court shall only receive payment for performance rendered or costs incurred in accordance with the terms of this agreement prior to the effective date of termination. e. The Court shall, submit its paper A-19 invoices quarterly to.- AOC o: AOC Financial Services PO Box 41170 Olympia, Washington 98504-1170 The ISF Data shall be submitted electronically to the AOC as described in Section 3b, above, and in conjunction with the quarterly invoice. Payment to the Court for approved and completed work will be made by warrant or account transfer by AOC within 30 days of receipt of a properly -completed paper invoice and the completed ISF Data. g. The Court shall maintain sufficient backup documentation of expenses under this Agreement. h. The AOC, in its sole discretion and upon notice, may initiate revenue sharing and reallocate funding among courts. If it appears the Court may not expend the maximum Agreement amount, the AOC may reduce the maximum Agreement amount. AOC may increase the maximum Agreement amount if additional funds become available through this revenue sharing program. 6. TREATMENT OF ASSETS AND PROPERTY The AOC shall be the owner of any and all fixed assets or personal property jointly or cooperatively, acquired, held, used, or disposed of pursuant to this Agreement. 1AA18659 Page 3 of 11 7. RIGHTS IN DATA Unless otherwise provided, data which originates from this Agreement shall be "works for hire" as defined by the U.S. Copyright Act of 1976 and shall be owned by the AOC. Data shall include, but not be limited to, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and video and/or sound reproductions. Ownership includes the right to copyright, patent, register, and the ability to transfer these rights. In the event that any of the deliverables under this Agreement include material not included within the definition of "works for hire," the Court hereby assigns such rights to the AOC as consideration for this Agreement. Data which is delivered under this Agreement, but which does not originate therefrom, shall be transferred to the AOC with a nonexclusive, royalty -free, irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so; Provided; that such license shall be limited to the extent which the Court has a right to grant such a license. The Court shall advise the AOC, at the time of delivery of data furnished under this Agreement, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Agreement. The AOC shall receive prompt written notice of each notice or claim of copyright infringement received by the Court with respect to any data delivered under this Agreement. The AOC shall have the right to modify or remove any restrictive markings placed upon the data by the Court. 8. INDEPENDENT CAPACITY The employees or agents of each party who are engaged in the performance of this Agreement shall continue to be employees or agents of that party and shall not be considered for any purpose to be employees or agents of the other party. 9. AGREEMENT ALTERATIONS AND AMENDMENTS This Agreement may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 10. RECORDS, DOCUMENTS, AND REPORTS The Court shall maintain books, records, documents and other evidence of accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Agreement. These records shall be subject at all reasonable times to inspection, review, or audit by personnel duly authorized by the AOC, the Office of the State Auditor, and federal officials so authorized by law, rule, regulation, or Agreement. The Court will retain all books, records, documents, and other material relevant to this Agreement for six years after settlement, and make them available for inspection by persons authorized under this provision. IAA18659 Page 4 of 11 11. RIGHT OF INSPECTION The Court shall provide right of access to its facilities to the AOC, or any of its officers, or to any other authorized agent or official of the state of Washington of the federal government at all reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance under this Agreement. 12. DISPUTES Disputes arising under this Agreement shall be resolved by a panel consisting of one representative from the AOC, one representative from the Court, and a mutually agreed upon third party. The dispute panel shall thereafter decide the dispute with the majority prevailing. Neither party shall have recourse to the courts unless there is a showing of noncompliance or waiver of this section. 13. TERMINATION Either party may terminate this Agreement upon thirty (30) days written notice to the other party. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. 14. GOVERNANCE This Agreement is entered into pursuant to and under the authority granted by the laws of the state of Washington and any applicable federal laws. The provisions of this Agreement shall be construed to conform to those laws. In the event of an inconsistency in the terms of this Agreement, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order: a. Applicable state and federal statutes and rules; b. This Agreement and attached Exhibits A and B; and c. Any other provisions of the agreement, including materials incorporated by reference and hyperlinks to those materials. 15. ASSIGNMENT The work to be provided under this Agreement, and any claim arising hereunder, is not assignable or delegable by either party in whole or in part, without the express prior written consent of the other party, which consent shall not be unreasonably withheld. 16. WAIVER A failure by either party to exercise its rights under this Agreement shall not preclude that party from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this Agreement unless stated to be such in a writing signed by an authorized representative of the party and attached to the original Agreement. IAA18659 Page 5 of 11 17. SEVERABILITY If any provision of this Agreement, or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision and to this end the provisions of this Agreement are declared to be severable. 18. ENTIRE AGREEMENT This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be considered to exist or to bind any of the parties to this agreement unless otherwise stated in this Agreement. 19. AGREEMENT MANAGEMENT The program managers noted below shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Agreement: AOC Program Manager Court Program Manager Robert Lichtenberg Dawn Nelson Senior Court Program Analyst Administrator PO Box 41170 900 Pacific Ave Olympia, WA 98504-1170 Bremerton, WA 98337 robert.lichtenberg@courts.wa.gov dawn. nelson@ci.bremerton.wa. us (360) 350-5373 360-473-5242 AGREED: ADMINISTRATIVE OFFICE OF THE COURTS Signature Date Callie Dietz Name Administrator, AOC Titre BREMERTON MUNICIPAL COURT Signature Name Title 1AA18659 Date Page 6 of 11 EXHIBIT A - IAA18659 WASHINGTON STATE INTERPRETER SERVICES FUNDING FUNDING CONDITIONS AND PAYMENT STRUCTURE The Court Interpreter Reimbursement Program funding conditions and payment structure shall be as follows: 1. Qualifying Events General Funding Conditions The Administrative Office of the Courts (AOC) will reimburse courts under this Agreement for the cost of AOC -certified, registered, or otherwise court -qualified interpreters appointed pursuant to chapters 2.42 and 2.43 RCW under the following conditions which are referred to as "Qualifying Events".- A. vents": A. Spoken Language Interpreters Qualifying Events 1. Certified and Registered Language Interpreters Compensation for interpreters currently credentialed by the AOC in the certified and registered language categories shall be reimbursed for actual compensation paid pursuant to the payment structure for those interpreters outlined below in, Section 2 "Payment Structure." 2. Non -Credentialed Interpreters in Certified and Registered Language Categories If the AOC master interpreter list for certified or registered languages does not include any interpreters credentialed by the AOC for those languages, reimbursement will be provided for actual compensation paid pursuant to the payment structure outlined below in Section 2,"Payment Structure, as long as the selected interpreter is found qualified on the record by the Court pursuant to chapter 2.43 RCW. 3. Non -Credentialed Languages Compensation for interpreters for languages for which neither certification nor registration is offered will be reimbursed where the interpreter has been qualified on the record pursuant to chapter 2.43 RCW. B. Sign Language Interpreters Qualifying Events Reimbursement for actual expenses incurred for services of American Sign Language (ASL) interpreters appointed by an appointing authority pursuant to chapter 2.42 RCW will be authorized pursuant to the payment structure outlined below in Section 2, "Payment Structure" as long as the selected interpreter is listed with the Department of Social and Health Services, Office of Deaf and Hard of Hearing (DSHS, ODHH) as a court -certified ASL interpreter. IAA18659 Page 7 of 11 C. Salaried Staff and Contract Interpreters Reimbursement will be provided for salaried staff or contracted interpreters meeting the Qualifying Event conditions for the payment of credentialed spoken and sign language interpreters, as referenced above. D. Remote Interpreting The AOC will reimburse local jurisdictions for using certified, registered, or otherwise qualified interpreters operating by telephone or videophone when providing court interpreting services for either Limited English Proficiency (LEP) persons or persons who rely on sign language for in -court proceedings and for services that are provided by the Court to the public outside of the courtroom. E. Scope of Interpreter Funding Reimbursement will only be made to the Court for interpreter costs paid from the Court's budget (or budgets, in the case of multi -court collaborative applicants) for interpreter services set forth in this Agreement. 2. Payment Structure A. Hourly Rate or Flat Rate 1. Rate for Spoken Language Interpreters Subject to the maximum compensation allowed under this Agreement, the AOC will reimburse the Court for 50 percent of the total hourly cost and the hourly minimum charges for services provided by AOC -certified, registered, or otherwise court -qualified interpreters. Total hourly costs shall not exceed $50.00 per hour and shall be for at least two hours of work. The cost of interpreters who are paid other than on an hourly basis (e.g., on a half-day or flat rate basis) will be only reimbursed for the actual number of hours of interpreting provided for each Qualifying Event. 2. Rate for Sign Language Interpreters Subject to the maximum compensation allowed under this Agreement, the AOC will reimburse the Court for 50 percent of the total hourly cost and the hourly minimum charges for services provided under this Agreement. Total hourly costs shall not exceed $50.00 per hour and shall be for at least two hours of work. The cost of interpreters who are paid other than on an hourly basis (e.g., on a half-day or flat rate basis) will be only reimbursed for the actual number of hours of interpreting provided for each Qualifying Event. 3. Salaried Interpreters Subject to the maximum compensation allowed under this Agreement, the AOC will reimburse the Court for 50 percent of the cost of staff interpreters that meet the Qualifying Event conditions for the payment of credentialed spoken and sign language interpreters, as referenced in Section 1. AOC will reimburse only for interpreter services and only up to a maximum total salary of $60,000 plus 27 percent in benefits (i.e., state reimbursement = up to $30,000 of salary plus 13.5 percent in benefits). IAA18659 Page 8 of 11 4. Telephone Interpreting Rate The AOC will reimburse local jurisdictions for up to 50 percent of the cost of using certified, registered, or otherwise qualified interpreters providing interpretation by telephone or videophone for LEP persons or persons who rely on sign language., up to a maximum of $1.64 per minute (with no minimum service time). 5. Excess Charges Interpreter rates in excess of $50 an hour shall be the sole responsibility of the Court. Where the Court must pay an hourly minimum rate for the first hour of service, any such rate in excess of $100.00 shall be the sole responsibility of the court. 6. Hourly Rounding Hourly compensation for services provided shall be charged and paid in 30 minute increments. B. Travel Time and Mileage The AOC will reimburse Courts for up to 50 percent of the cost of interpreter travel time or mileage when such charges are in accordance with this Exhibit A and reimbursed as identified below in Interpreter Travel and Mileage Reimbursement. In such event, travel time and mileage charges will only be reimbursed for interpreters meeting the Qualifying Event conditions. The AOC reserves the right to limit travel reimbursement to reasonable travel, based on known availability and location of certified, registered, or otherwise qualified interpreters. IAA18659 Page 9 of 11 INTERPRETER TRAVEL AND MILEAGE REIMBURSEMENT Interpreter mileage and/or travel time will be reimbursed as follows: 1. MILEAGE Interpreter mileage will be reimbursed in accordance with the prevailing Office of Financial Management (OFM) Policy and Guidance rate. The Court will notify interpreters of any change in the OFM rate before it becomes effective. Mileage will be reimbursed on a from "address of origin* 13 to "address of appointment"14 basis. The Court and interpreter will negotiate reimbursement for mileage traveled from the "address of appointment' to "address of destination"" on a ease -by -case basis, (NOTE: Courts are encouraged to have a consistent policy regarding the return trip.) In Eastern Washington, due to the scarcity of interpreters and vast distance for portal-to- portal travel, it is recommended that the Court reimburse the interpreter for mileage on an "address of appointment" to "address of destination" or roundtrip basis16 Interpreter mileage related to an appointment is billable if a required party fails to appear. "Failure to appear" means a non-appearance by the LEP or deaf or hard of hearing client, attorneys, witnesses, or any necessary party to a hearing, thereby necessitating a cancellation or continuance of the hearing. Mileage related to appointments that have been cancelled where the interpreter has received prior notice of the cancellation is not billable. If any proceeding or appointment is cancelled because of interpreter's tardiness then the interpreter shall not be paid for travel. Address Mileage Address of Mileage Address of Origin Appointment Destination Billable IAA18659 $? Subject to Negotiation Page 10 of 11 13 "Address of origin" means the interpreter's home, office, or immediately previous appointment meeting place. a "Address of appointment" means the courthouse or other location of the interpreter assignment. 5 "Address of destination" means the interpreter's home, office, or immediately next appointment meeting place. 16 "Roundtrip" means from the interpreter's home/office to the appointed meeting place, followed by the interpreter's return to their home/office. 2. TRAVEL TIME Travel time will be reimbursed on a from "address of origin" to "address of appointment" basis. The Court and interpreter will negotiate reimbursement for travel time from "the address of appointment" to "address of final destination" on a case-by-case basis at the time the appointment is requested. (NOTE: Courts are encouraged to have a consistent policy regarding the return trip.) In Eastern Washington, due to the scarcity of interpreters and vast distance for portal-to-portal travel, it is recommended that the Court reimburse the interpreter for travel time on an "address of appointment" to "address of destination" or roundtrip basis. Interpreters must travel for either a minimum of sixteen (16) miles or for one-half hour in order to be eligible for travel time reimbursement. Exceptions to the sixteen (16) mile minimum requirement shall be made when the use of a ferry contributes to the one-half hour or more of travel time. Travel time will be reimbursed at a rate of one half the hourly interpreter rate for each hour of travel. Example: Interpreter traveled four hours to an appointment and the hourly rate is $50. One half of the hourly rate is $25. The calculation would be 4 x $25 = $100 for travel time. Distance Reimbursable Origin ==> Mileage Only Appointment 0 -15 Miles Origin ==> Appointment Mileage or Travel Time* (but not both) 16+ Miles or half-hour travel* *Travel Time can be claimed only when traveling time is half hour (30 minutes) or more. Interpreter travel time related to an appointment is billable if a required party fails to appear. "Failure to appear" means a non-appearance by the LEP or deaf or hard of hearing client, attorneys, witnesses, or any necessary party to a hearing, thereby necessitating a cancellation or continuance of the hearing. Travel time related to appointments that have been cancelled where the interpreter has received prior notice of the cancellation is not billable. If any proceeding or appointment is cancelled because of interpreter's tardiness then the interpreter shall not be paid for travel. IA.A18659 Page 11 of 11 AGENDA BILL �� CITY OF BREMERTON CITY COUNCIL SUBJECT: Agreement with Kitsap County Study Session Date: December 13, 2017 for Incarceration of City Prisoners COUNCIL MEETING Date: December 20, 2017 Department: City Attorney's Office Presenter: Dave Boynton Phone: (360)473-5260 SUMMARY: The City of Bremerton and Kitsap County desire to re-enter into a new agreement for Incarceration of Prisoners. The current agreement expires December 31, 2017, and the new agreement is for a one-year term commencing on January 1, 2018. ATTACHMENTS: Kitsap County/City of Bremerton Agreement for Incarceration of City Prisoners FISCAL IMPACTS (Include Budgeted Amount): Budgeted in the 2018 Budget STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: 0 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Agreement with Kitsap County for Incarceration of City Prisoners; 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 KC -231-17 KITSAP COUNTYXITY OF BREMERTON AGREEMENT FOR INCARCERATION OF CITY PRISONERS THIS AGREEMENT is made and entered into by and between KITSAP COUNTY, a municipal corporation, having its principal offices at 614 Division Street, Port Orchard, Washington, 98366 (the County) and the CITY OF BREMERTON (the Contract Agency), having its principal offices at 345 6t" Street, Bremerton, Washington 98337. WHEREAS, the County is authorized by law to operate a jail for misdemeanants and felons and the Contract Agency is authorized by law to operate a jail for misdemeanants and felons; WHEREAS, the Contracting Agency wishes to designate the County jail as a place of confinement for the incarceration of one or more prisoners lawfully committed to the Contract Agency's custody; WHEREAS, the County is amenable to accepting and keeping prisoners received from the Contract Agency in the County's custody at its jail for a rate of compensation mutually agreed to herein; WHEREAS, Washington laws authorize any public agency to contract with another public agency to perform services and activities that each such public agency is authorized by law to perform; and WHEREAS, the County and Contract Agency have considered the anticipated costs of incarceration services and potential revenues to fund such services and determined it is in each of their best interests to enter into this Agreement as authorized and provided for by Washington law. AGREEMENT For and in consideration of the conditions, covenants and agreements contained herein, the parties agree as follows: 1. PURPOSE: It is the purpose of this Agreement to provide for the use by the Contract Agency of the County's jail facilities and services located at the Kitsap County Sheriff's Office, Corrections Division, 614 Division Street, Port Orchard, Washington, 98366. 2. DETENTION/INCARCERATION The County shall incarcerate persons received from the Contract Agency until the following occur: KC -231-17 Page 1 (a) expiration of the term of confinement as indicated in a Warrant or Order of Commitment or as a result of an Order of Release, or is placed on electronic monitoring or similar program as approved by the court; or (b) upon posting of bail; or (c) receipt of a directive from a law enforcement officer or prosecuting attorney of the Contract Agency to release such person held under probable cause without judicial process; or (d) for those held upon probable cause without judicial process upon the passage of two (2) business days; provided, prior to releasing any person pursuant to this subsection, the County shall attempt to contact the Contract Agency to ascertain the Contract Agency's desire with regard to said person; provided that the Contract Agency shall hold the County harmless as set forth in Section 19 for any claim or action resulting from the detention of an individual wrongly detained at the direction of the Contract Agency. 3. CONTRACT REPRESENTATIVES: All written notices, reports and correspondence required or allowed by this Agreement shall be sent to the following: County: Kitsap County Sheriff's Office Mark Rufener, Chief of Corrections 614 Division Street, MS -33 Port Orchard, WA 98366 Phone: 360-337-7107 m rufener(a)co. kitsap.wa. us Contract Agency: City of Bremerton Dave Boynton, Warrant Officer - EHD 550 Park Avenue Bremerton, WA 98337 Phone: 360-473-5465 dave. boynton(aD-ci. bremerton.wa. us 4. AVAILABILITY OF JAIL FACILITIES: Subject to the County's rights with respect to certain prisoners set forth in Sections 9 and 10 herein, the County will accept and keep prisoners at the request of the Contract Agency, unless the County, in its sole discretion, determines that the jail population is at capacity or so near capacity that there is a risk that the reasonable operational capacity limits of the County jail might be reached or exceeded if the County does not begin to refuse or request removal of prisoners. However, County agrees to notify the Contract Agency prior to any potential action by the County resulting in a change of intake standards. County further agrees to cooperate to the greatest extent possible with the Contract Agency to ensure Contract Agency's ability to incarcerate its prisoners at the county facility. KC -231-17 Page 2 Upon acceptance of a prisoner at the request of the Contract Agency, the County shall accept and store the prisoner's personal belongings in an amount not to exceed a day pack or equivalent in volume. Any personal belongings exceeding this amount will require County approval prior to acceptance and storage. 5. DEFINITIONS: "Contract Agency Prisoner" as used in this Agreement shall mean a person arrested by Contract Agency officers and held and confined in the Kitsap County Jail, or otherwise held in detention as provided in this agreement pursuant to a violation of a Contract Agency ordinance or a violation of a state law or ordinance which designates the crime for which the person is held to be a misdemeanor, gross misdemeanor, or felony (see RCW 70.48.400). A prisoner arrested on a warrant issued by another jurisdiction within Kitsap County or for charges initiated by a non -Contract Agency officer, shall be the responsibility of the originating agency. Arrests made by Contract Agency officers on extraditable warrants issued by agencies outside Kitsap County will be considered County prisoners. Non -contracting agencies will not be factored when calculating "split billing". "Bed—Day" shall mean a consecutive 24-hour period that a Contract Agency Prisoner is in custody at the county jail, including a prisoner's booking into the county jail. "Shared Bed -Day" shall refer to the circumstance when a Contract Agency Prisoner is held in custody at Kitsap County Jail pursuant to this Agreement at the same time the prisoner is being held by another Contract Agency and/or the County including periods of time less than 24 hours. Non -contract agencies will not be factored when calculating "shared bed -days." "Split Billing" shall occur in the event of a shared bed -day. The bed -day shall be apportioned on an equal basis between the respective jurisdictions having custody of the prisoner. Non -contracting agencies will not be factored when calculating "Split Billing". 6. COMPENSATION FROM CONTRACT AGENCY: (a) Base Rate for Housing. In return for the County's housing of a Contract Agency Prisoner, the Contract Agency shall pay the County from the time said prisoner is transferred to the custody of the County to the time when the Contract Agency resumes custody, or the prisoner is released. The housing rate will be fifty dollars ($50) for prisoners who are in the facility for less than twelve (12) hours. For prisoners who are in the facility for twelve (12) hours or more, the rate will be ninety-one dollars and six cents ($91.06) for every 24-hour period, or portion thereof, that said prisoner is in the custody of the County. "Split Billing" as defined in Section 5 above will be apportioned as appropriate. (b) Determination of Case Status. The Kitsap County Prosecuting Attorney shall have the sole authority to determine which felony cases submitted by the Contract Agency shall be charged as felonies. The Contract Agency shall not be responsible for KC -231-17 Page 3 the base rate for housing prisoners on any cases charged as a felony by the Prosecutor. If the Prosecutor makes the determination that a case is a misdemeanor/gross misdemeanor, such cases will be referred to the Contract Agency for filing in the appropriate court of limited jurisdiction. (c) Billing. The County will bill the Contract Agency on or about the 30th day of each month for all amounts due to the County under this Agreement for the services rendered in the prior calendar month. Such fees shall be due and payable by the Contract Agency to the County within 30 days after receipt of an itemized invoice. (d) Other Costs. The Contract Agency shall also pay such other costs to the County or third parties as set forth herein, including but not limited to any medical costs required by Section 7. 7. MEDICAL COSTS AND TREATMENT: (a) Services Provided. Upon transfer of custody of a Contract Agency Prisoner to the County, the County will provide or arrange for such medical, mental health and dental services as may be necessary to safeguard the prisoner's health while confined, in accordance with the policies and rules of the County jail. The County contracts with a correctional care vendor for in-house medical and mental health care in the jail. The costs of these services are included in determining the above -stated daily per diem rates charged to the Contract Agency. (b) Cost Responsibility — Outside Medical Costs. Outside Medical costs are any and all expenses incurred for necessary medical care of a Contract Agency Prisoner, excluding the in-house professional medical services provided for under Section 7(a) above. These costs include, but are not limited to, prescriptions, laboratory tests, medical imaging services, necessary durable medical equipment, and any in-patient or out-patient treatment or referral. The Contract Agency shall be responsible for its proportion of all outside medical costs for its prisoners as provided herein. For purposes of medical costs and treatment, Contract Agency Prisoners are defined as all arrestees who are pre -conviction and post -conviction misdemeanants, and pre - conviction felons. The Contract Agency shall also be responsible for its proportion of all costs associated with the delivery of medical, mental health, and dental services provided to a Contract Agency Prisoner that are not available from the health care program within the County jail, and for all emergency medical services, wherever provided. These costs shall be paid directly to the County, as directed by the County. Prisoners arrested and confined on warrants issued in Kitsap County shall be the responsibility of the originating agency. Medical costs and treatment for prisoners arrested by Contract Agency officers on extraditable warrants issued by agencies outside Kitsap County will be the responsibility of Kitsap County. (c) Emergency, Non -emergent and Non -hospital Care outside the Jail - Notification. For emergency care, the County will notify the Contract Agency within four (4) business KC -231-17 Page 4 hours of transport (Monday through Friday, from 8 a.m. to 5 p.m. PST). For non- emergent and non -hospital care outside of the jail, the County will notify the Contract Agency before noon on the next business day. In either case, the Contract Agency will be notified as follows: Pre -Trial • During business hours, contact Bremerton Municipal Court at 360-473-5250 • After business hours, call Judge James Docter at 360-710-6352 (cell), or 360-473-5215 (office) Post -Conviction Misdemeanants and/or Pre -Conviction Felonies • Dave Boynton at dave.boynton(d)-ci.bremerton.wa.us (d) Pre -Confinement Consents or Refusals. If a Contract Agency Prisoner has received or refused any medical, mental health or dental treatment from the Contract Agency before confinement in the County jail, the Contract Agency shall provide to the County all written verification of any authorization of or refusal to authorize care or treatment for such prisoner. (e) Return for Medical Services. Nothing herein shall preclude the Contract Agency from retaking custody of an ill or injured prisoner by picking the prisoner up for transfer at the County jail; provided, in situations the County deems that a prisoner requires emergency medical care, the County shall have the right to arrange for emergency medical services (at the Contract Agency's expense) notwithstanding a request from the Contract Agency to retake custody of the prisoner. (f) Records. The County shall keep records of all medical, mental health or dental services it provides to a prisoner as required by law. The County agrees to share all information, including insurance information, regarding a Contract Agency inmate, as allowed by law. (g) No Waiver of Right to Seek Reimbursement. The above paragraphs relating to medical costs are intended solely to define the obligations between the parties to this Agreement. Nothing contained within the provisions of this Agreement shall be construed to waive the rights of either party to seek reimbursement for costs from the Washington State Department of Social and Health Services, from the prisoner, or any other responsible third party. 8. TRANSPORTATION OF CONTRACT AGENCY PRISONERS: (a) Transports. The Contract Agency shall provide or arrange for transportation of its prisoners to and from the County jail except when the transportation is determined by County staff to be necessary to secure emergency medical evaluation or treatment, or when transportation is required to support the orderly operation of the County jail. KC -231-17 Page 5 (b) Transports with Costs. The Contract Agency shall be responsible for transportation of all its prisoners to the County jail for initial booking. When the Contract Agency has its own Court, then the Contract Agency shall be responsible for transportation of all its prisoners from the jail facility for all appearances in the Court. In the event the Contract Agency cannot provide transportation noted herein and the County performs the transportation on behalf of the Contract Agency, the Contract Agency shall reimburse the County for transportation performed by the County at the Standard Mileage Rates as set by the Internal Revenue Service plus $40.00 per hour for the cost of personnel. (c) Contract Agency Transports. The Contract Agency shall provide reasonable notice to the County prior to transporting a prisoner from the County jail. Except as limited by Section 8(a), the Contract Agency shall be responsible for retaking custody of a prisoner at the County jail and for transporting the prisoner. 9. TRANSFER OF CUSTODY: (a) Commencement of Custody by County. Custody of a Contract Agency Prisoner shall be deemed transferred to the County when officers from the Kitsap County Sheriff's Office take physical control of the prisoner. The County will not take such control of a prisoner until the Contract Agency has delivered copies of all records in its possession pertaining to the prisoner's incarceration by the Contract Agency or its agent, including a copy or summary of the prisoner's medical records if held by the Contracting Agency or its agent. If the County requests additional information regarding a particular prisoner, then the parties shall mutually cooperate to obtain such information. Absent compliance with existing policies, the County shall not be required to take custody of or assume control of or responsibility for any property of the prisoner except as set forth in Section 4 above. The Contract Agency's officers, when transporting a prisoner to the jail shall be responsible for ensuring that all paperwork is in order and that all property allowed to be transported with the prisoner is properly packaged. The County will not take physical control and assume custody of a prisoner to be confined unless all paperwork and property of the prisoner are in order. Upon presentation of an individual for confinement, or as soon thereafter as is practicable, the Contract Agency shall advise the staff of the County jail of the duration or other terms of confinement of a given individual. The Contract Agency shall provide a copy of any Warrant of Arrest or Order of Commitment. The Contract Agency shall be solely responsible for determining that the individuals presented for detention are detainable and shall certify by the act of presenting an adult person for detention, that said person is legally detainable and County shall bear no responsibility to ensure that said individuals are legally detainable. The Contract Agency shall hold the County harmless as set forth in Section 19 for any claim or action resulting from the detention of an individual wrongly presented by the Contract Agency for detention. KC -231-17 Page 6 When custody of a Contract Agency Prisoner is transferred to the County, the Contract Agency Prisoner shall be subject to all applicable rules, regulation and standards governing operation of the County jail, including any emergency security rules imposed by the jail administrator or Sheriff. Any Contract Agency police officer delivering a prisoner to the County jail shall comply with reasonable rules and regulations of the County jail. (b) Further Transfer of Custodv. Except as otherwise allowed by Section 12 of this Agreement, the County will not transfer custody of any prisoner confined pursuant to this Agreement to any agency other than to the Contract Agency without the written authorization from a court of competent jurisdiction. (c) Responsibilities upon Assumption of Custody. Upon transfer of custody to the County, it shall be the County's responsibility to confine the prisoner; to supervise, discipline and control said prisoner; and to administer the prisoner's sentence pursuant to the order of the committing court in the State of Washington. During such confinement, the County shall provide and furnish or arrange for all necessary medical and hospital services and supplies in accordance with Section 7 of this Agreement. (d) Resumption of Custody by Contracting Agency. The Contract Agency shall be deemed to have resumed custody of a prisoner upon either the County's presentation of such prisoner to the Contracting Agency, or upon the Contract Agency's officers taking physical control of the prisoner. 10. RIGHT TO REFUSE PRISONER: The County shall have the right to refuse to accept any Contract Agency Prisoner who appears in need of medical, mental health or dental attention, until the Contract Agency has provided medical, mental health or dental treatment to the prisoner to the satisfaction of the County. 11. RELEASE, HOLDS AND COURT APPEARANCES: Additions to the Contract Agency video court calendar must be received by 0600 the day of the requested appearance. Additions made later than 0600 will be scheduled the following judicial day. Video court will not be used for non -criminal traffic violations unless it is in conjunction with a correlating criminal matter. For any book and release on a new charge or warrant arrest, the County shall make reasonable efforts to have the arrestee sign a promise to appear in court on the next court day. On the day of release, the County will post the promise to appear on the County's authorized website for review by the Bremerton Municipal Court. KC -231-17 Page 7 12. REMOVAL FROM JAIL - OTHER GROUNDS: Contract Agency Prisoners may be removed from the County jail for the following reason(s): (a) Request by Contract Agency. Upon written request by a supervisory member of the Contract Agency for transfer of custody back to the Contract Agency. (b) Court Order. By order of a court having jurisdiction over the Contract Agency Prisoner. In such case, transport, if any, will be pursuant to Section 8 above. (c) Treatment Outside of Jail. For medical, mental health, dental treatment or any other care not available within the County jail. (d) Catastrophe. In the event of any catastrophic condition occurring that poses eminent danger to the safety of the prisoner(s) or personnel of the County, the decision to remove prisoners will be at the sole discretion of the County. In such cases, the County will inform the Contract Agency, at the earliest practicable time, of the whereabouts of the prisoner(s) so removed and shall exercise all reasonable care for the safekeeping and custody of such prisoner(s). 13. TRANSFER OF PRISONERS UPON TERMINATION/EXPIRATION OF AGREEMENT: (a) Termination by County. In the event this Agreement expires or is terminated by a notice of termination from the County in accordance with Section 23 below, it shall be the County's obligation to transport the Contract Agency's Prisoners to the Contract Agency, at no expense to the Contract Agency. (b) Termination by Contract Agency. In the event this Agreement expires or is terminated by a notice of termination from the Contract Agency in accordance with Section 23 below, it shall be the Contract Agency's obligation to transport the Contract Agency's Prisoners at its own expense, on or before the effective date of such termination. 14. PRISONER RIGHTS, ACCOUNTS AND PROGRAMS: (a) Early Release Credit and Discipline. The Contract Agency agrees that its policies if any, for early release credits shall allow no more credit for its prisoners than is allowed by the County under its policies. Contract Agency Prisoners confined under this Agreement shall earn early release credits under the policies and rules prescribed by the County and state law for all prisoners at the County jail. With respect to Contract Agency Prisoners, the County shall maintain and manage disciplinary issues and will administer sanctions, including removal of earned early release credit, pursuant to facility rules. No discipline prohibited by federal or state law will be permitted. The disciplinary policies and rules of the County jail will apply equally to Contract Agency KC -231-17 Page 8 Prisoner confined pursuant to this Agreement as applied to other prisoners confined to the Jail. (b) Prisoner Accounts. The County shall establish and maintain an account for each Contract Agency Prisoner and shall credit to such account all money received from a prisoner or from the Contract Agency on behalf of a prisoner. The County shall make disbursements from such accounts by debiting such accounts in accurate amounts for items purchased by the prisoner for personal needs. (c) Programs. The County shall provide Contract Agency Prisoners with access to all educational, recreational and social service programs offered at the County jail under the terms and conditions applicable to all other prisoners at the jail. d) Serve Time Outside of Facilitv. Contract Agency Prisoners, if deemed eligible, will be allowed to leave the jail for participation in correctional work crews, or any other program in which other prisoners sometimes are allowed to leave the physical confines of the jail as part of serving their sentence. 15. ACCESS TO FACILITY AND PRISONERS: (a) Access to Facility. The Contract Agency shall have the right to inspect, at mutually agreeable times, the County jail in order to confirm such jail maintains standards acceptable to the Contract Agency and that its prisoners are treated appropriately. The County agrees to manage, maintain and operate its facilities consistent with all applicable federal, state and local laws. (b) Access to Prisoners. Contract Agency personnel shall have the right to interview prisoners from the Contract Agency at any reasonable time within the jail. Contract Agency officers shall be afforded equal priority for use of jail interview rooms. 16. ESCAPES AND DEATHS: (a) Escapes. In the event of an escape by a Contract Agency Prisoner from the County jail, the Contract Agency will be notified as soon as practical. The County will have the primary authority to direct the investigation and to pursue the prisoner within its jurisdiction. Any costs related to the investigation and pursuit within its jurisdiction will be the responsibility of the County. The County will not be required to pursue and return the Contract Agency's escaped prisoner from outside of the County. (b) Deaths. (1) In the event of a death of a Contract Agency Prisoner in the County jail, the Contract Agency shall be promptly notified in writing. Kitsap County Sheriff's Office will investigate the circumstances. The Contract Agency may join in the investigation and receive copies of all records and documents from the investigation. KC -231-17 Page 9 (2) The County shall, subject to the authority of the Kitsap County Coroner, follow the written instructions of the Contract Agency regarding the disposition of the body. Such written instructions shall be provided within three working days of receipt by the Contract Agency of notice of such death. All expenses related to necessary preparation of the body and transport charges shall be the responsibility of the Contract Agency. With written consent from the Contract Agency, the County may arrange burial and all matters related or incidental thereto, and the Contract Agency shall be responsible for all such expenses. This paragraph defines the obligations between the parties to this Agreement and shall not affect the liability of any relative or other person for the disposition of the deceased or any expenses connected therewith. Notwithstanding the above, all expenses related to the death of a Contract Agency Prisoner in the County jail resulting from physical injuries incurred while under the care, custody and control of the County shall be the responsibility of the County. 17. POSTING OF BAIL: The County shall serve as agent for the Contract Agency in receipt of any bail bonds or any monies posted for or by a Contract Agency's prisoner with the County, and any such bonds or monies will be promptly forwarded to the proper agency. 18. RECORD KEEPING: The County agrees to maintain a system of record keeping relative to the booking and confinement of each Contract Agency Prisoner consistent with the record keeping by the County for all other prisoners. The County shall make copies of said records available without cost to the Contract Agency upon its request. 19. INDEMNIFICATION, HOLD HARMLESS AND INSURANCE: (a) The Contract Agency agrees to defend, indemnify and hold harmless the County, its appointed and elected officials, employees and agents from and against all liability, loss, cost, damage and expense, including costs and attorneys fees in defense thereof because of actions, claims or lawsuits alleging damages sustained by any person or property including death at any time resulting thereof, arising from or alleged to have arisen from: (1) the Contract Agency's performance under this Agreement or as a consequence of any wrongful or negligent acts or omission of the Contract Agency, its appointed and elected officials, employees and agents; (2) wrongful detention of a Contract Agency Prisoner as a result of the Contract Agency's actions; and (3) failure or refusal to timely release a Contract Agency Prisoner as a result of the Contract Agency's actions. To the extent the claim, damages, losses and expenses are caused by intentional acts of or by the concurrent negligence of the County, its officers, agents, or employees, the KC -231-17 Page 10 Contract Agency's indemnification obligation hereunder shall be limited to the Contract Agency's proportionate share of liability as agreed to by the parties to this Agreement or determined by a court of competent jurisdiction. (b) The County agrees to defend, indemnify and hold harmless the Contract Agency, its appointed and elected officials, employees and agents from and against all liability, loss, cost, including but not limited to medical cost, damage and expense including costs and attorneys fees in defense thereof because of actions, claims or lawsuits alleging damages sustained by any person or property including death at any time resulting thereof, arising from, or alleged to have arisen from: (1) the County's performance under this Agreement or as a consequence of any wrongful or negligent acts or omission of the County, its appointed and elected officials, employees and agents; (2) wrongful detention of a Contract Agency Prisoner as a result of the County's actions; and (3) the County's failure or refusal to timely release a Contract Agency Prisoner. To the extent the claim, damages, losses and expenses are caused by intentional acts of or by the concurrent negligence of the Contract Agency, its officers, agents, or employees, the County's indemnification obligation hereunder shall be limited to the County's proportionate share of liability as agreed to by the parties to this Agreement or determined by a court of competent jurisdiction. Solely for the purposes of this indemnification provision, Contract Agency expressly waives its immunity under Title 51 (Industrial Insurance) of the Revised Code of Washington and acknowledges that this waiver was mutually agreed by the parties. (c) Insurance Requirement: The County and the Contract Agency shall maintain and provide evidence of liability coverage. The terms of Section 19, "INDEMNIFICATION, HOLD HARMLESS AND INSURANCE" shall survive the termination or expiration of this Agreement. 20. NON-DISCRIMINATION POLICY: The County and the Contract Agency agree not to discriminate in the performance of this Agreement because of race, color, national origin, sex, sexual orientation, age, religion, creed, marital status, disabled or veteran status, or the presence of any physical, mental, or sensory handicap. 21. ADMINISTRATION/DISPOSAL OF PROPERTY: This Agreement is executed in accordance with the authority of Chapter 39.34 RCW, the Interlocal Cooperation Act. Pursuant to the provisions of RCW 39.34.030, the Kitsap County Sheriff shall be responsible for administering the confinement of KC -231-17 Page 11 prisoners hereunder. No real or personal property will be jointly acquired by the parties under this Agreement. All property owned by each of the parties shall remain its sole property to hold and dispose of in its sole discretion. 22. DURATION: The initial term of this Agreement shall be effective from January 1, 2018 through December 31, 2018 unless another date is substituted pursuant to Section 26, or the agreement is terminated earlier pursuant to Section 23. Nothing in this Agreement shall be construed to make it necessary for the Contracting Agency to continuously house prisoners with the County. 23. TERMINATION: This Agreement may be terminated for the convenience of either party prior to expiration by written notice from such party delivered by regular mail to the designated representative at the address set forth herein. Termination by said notice shall become effective one hundred twenty (120) days after receipt of such notice. For the information of the other party, but not as a condition affecting the effectiveness of the notice, the notice shall set forth the reason the party has decided to terminate the Agreement and the specific plan for accommodating Contracting Agency Prisoners to be affected, if any. 24. WAIVER OF RIGHTS: No waiver of any right under this Agreement shall be effective unless made in writing by an authorized representative of the party to be bound thereby. Failure to insist upon full performance on any occasion shall not constitute consent to or waiver of any continuation of nonperformance or any later nonperformance; nor does payment of a billing or continued performance, after notice of a deficiency in performance, constitutes acquiescence thereto. 25. WAIVER OF ARBITRATION RIGHTS: Both parties acknowledge and agree that they are familiar with the provisions of RCW 39.34.180(3), as now in effect, and that of their own free will they hereby expressly waive any and all rights under RCW 39.34.180(3), as now in effect or as hereinafter amended, to arbitrate the level of compensation for incarceration services charged under this Agreement, or any renewal thereof, that either party may possess. The parties further agree that such level of compensation and all other issues related to the purpose of this Agreement will only be as agreed to herein or as otherwise agreed to in writing executed by the parties. KC -231-17 Page 12 26. MODIFICATION: This Agreement may only be modified by written instrument signed by both Parties. 27. GOVERNING LAW/VENUE: The parties hereto agree that, except where expressly otherwise provided, the laws and administrative rules and regulations of the State of Washington shall govern in any matter relating to this Agreement and to a prisoner's confinement under this Agreement. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington and in the event of dispute; the venue for any action brought hereunder shall be in Kitsap County Superior Court. 28. MISCELLANEOUS: In providing these services to the Contract Agency, the County is an independent contractor and neither its officers, agents, nor employees are employees of the Contract Agency for any purpose including responsibility for any federal or state tax, industrial insurance or Social Security liability. No provision of services under this Agreement shall give rise to any claim of career service or civil service right, which may accrue to an employee of the Contract Agency under any applicable law, rule, or regulation. 29. SEVERABILITY: If any provision of this contract shall be held invalid, the remainder of this contract shall not be affected thereby if such remainder would then continue to serve the purposes and objectives of both parties. Signatures appear on the next page. KC -231-17 Page 13 DATED this day of , 2017 CITY OF BREMERTON Patty Lent, Mayor ATTEST: Shannon L. Corin, City Clerk DATED this day of , 2017 KITSAP COUNTY SHERIFF Gary Simpson Board of Commissioners Kitsap County, Washington Rob Gelder, Chair Edward E. Wolfe, Commissioner Charlotte Garrido, Commissioner ATTEST: Dana Daniels, Clerk of the Board KC -231-17 Page 14 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5343 amending Titles 2, 3, and 5 of the Bremerton Municipal Code relating to the transfer of the Tax & License Division from the Financial Services Department to the Department of Community Development 7J Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: DCD Presenter: Andrea L. Spencer Phone: (360) 473-5283 SUMMARY: The City Council desired to create a one-stop permitting center that incorporates Tax & Licensing. The attached proposed ordinance amends Titles 2, 3, and 5 of the Bremerton Municipal Code ("BMC') to transfer Tax & Licensing division from the Department of Financial Services to the Department of Community Development and to make other related amendments. ATTACHMENTS: Ordinance No. 5343 amending Titles 2, 3, and 5 of Bremerton Municipal Code. FISCAL IMPACTS (Include Budgeted Amount): None anticipated. STUDY SESSION AGENDA: x❑ No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. 5343 amending BMC Titles 2, 3, and 5 transferring the Tax & License Division from the Department of Financial Services to the Department of Community Development and making other related changes. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action ORDINANCE NO. 5343 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 2.15.030 of the Bremerton Municipal Code entitled "Duties," sections of Title 3 entitled "Revenue and Finance," and sections of Title 5 entitled "Business Licenses and Regulations" regarding taxes and licenses. WHEREAS, the City Council desires to amend Section 2.15.030 of the Bremerton Municipal Code entitled "Duties," sections of Title 3 entitled "Revenue and Finance," and sections of Title 5 entitled "Business Licenses and Regulations", regarding taxes and licenses in order to update provisions relating to the transfer of the Tax and License Division from the Department of Financial Services to the Department of Community Development, and to make other related changes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION]. Section 2.15.030 of the Bremerton Municipal Code entitled "Duties" relating to the Department of Community Development is hereby amended to read as follows: 2.15.030 DUTIES. The Director of Community Development shall provide for the operation and administration of the building and planning functions for the City including, but not limited to: (a) Processing and issuance of development permits. (b) Long Range Planning, preparation of Comprehensive Plan amendments, and development of land use regulations. (c) Current planning, providing permit processing, land use compliance and enforcement including environmental and shoreline review. (d) Administration of federal community development grant funds and development of resources and policies for other community development projects in the areas of housing, economic development, public facilities, and social service projects. (e) Processing of tax and license applications. The Director of Community Development shall perform such other duties as the City Council or Mayor may direct or as may be required by law. SECTION2. Section 3.50.020 of the Bremerton Municipal Code entitled "Business License - Required" relating to utility taxes is hereby amended to read as follows: 3.50.020 BUSINESS LICENSE - REQUIRED. It is unlawful for any person to engage in business in the City without having first obtained a business license pursuant to Chapter 5.02 BMC. Applications for business licenses shall be filed with the Tax and License Division. Page 1 of 19 Tax & Licensing SECTION 3. Section 3.50.070 of the Bremerton Municipal Code entitled "Tax — When Due" relating to utility taxes is hereby amended to read as follows: 3.50.070 TAX - WHEN DUE. The tax imposed by this chapter shall be due and payable in monthly installments. If full payment of any tax due under this chapter is not received by the Tax and License Division on or before the date due, there shall be added to the amount due a penaltypursuant to BMC 3.86.110. SECTION 4. Chapter 3.72 of the Bremerton Municipal Code entitled "Gambling Tax" is hereby amended to read as follows: Chapter 3.72 GAMBLING TAX 3.72.010 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context indicates otherwise: "Director" means the Director of Community Development of the City or any officer, agent or employee of the City designated to act on the Director's behalf, and "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. In addition, €for the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 218, Laws of 1973, First Extraordinary Session and Chapter 9.46 RCW, each amended, and under the rules of the Washington State Gambling Commission, Chapter 230, WAC, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they may be given some other meaning. 3.72.020 PERSONS SUBJECT TO TAX - TAX RATES. There is levied upon all persons, associations, and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amount to be paid to the City: (a) Bingo, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent; (b) Raffles, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent. No tax shall be imposed on the first ten thousand dollars ($10,000) gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW; (c) Amusement games, in the amount sufficient to pay the actual costs of enforcement of the provisions of this chapter, which shall not exceed the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise, which are actually awarded as prizes during the taxable period, multiplied by the rate of two (2) percent; Page 2 of 19 Tax & Licensing (d) Charitable organizations. No tax shall be imposed under the authority of this chapter on bingo, raffles or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization, as defined in Chapter 9.46 RCW, which organization has not paid operating or management personnel and has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars ($5,000) per year less the amount paid as prizes; (e) Fishing derbies, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded for prizes during the taxable period, multiplied by the rate of ten (10) percent; (f) Punchboards or pull-tabs. (1) Any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall make such intention known to the City T4eastir- Director; (2) Any organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall remit to the City of Bremerton and there is hereby levied a tax computed at the rate of three (3) percent based upon the gross income received in the conduct of such activity, computed by multiplying the number of chances played on said punchboard or pull-tab times the price or value of each individual chance for play; (3) Any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW, who desires to utilize punchboards or pull-tabs pursuant to Chapter 9.46 RCW, shall remit to the City of Bremerton and there is hereby levied a tax computed at the rate of ten (10) percent based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Gross income received in the conduct of such activity is computed by multiplying the number of chances played on said punchboard or pull-tab times the price or value of each individual chance or play. Cash or merchandise awarded is computed by the amount of cash paid or cost of merchandise awarded; (g) Social card games. (1) Social card games (player funded), in the amount of ten (10) percent of the gross receipts received as fees charged persons for the privilege of playing in card games; (2) Social card games (house banked) in the amount of two (2) percent of the gross receipts received by the house from such social card games; (h) Fund-raising events, as defined by RCW 9.46.0233, in the amount of ten (10) percent of the net receipts derived from the fund-raising event. For the purpose of this section, "net receipts" means all money received by an organization during a given period of time, less the amount of money paid out as cash prizes during the same period of time. No additional expenditures which arise from the conducting of the fund-raising event shall be deducted for purposes of reducing the gross receipts to arrive at the net receipt. 3.72.030 TAX TO BE COMPUTED AND PAID QUARTERLY - EXCEPTIONS. Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the city, on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on Page 3 of 19 Tax & Licensing January 31st, April 30th, July 31st, and October 31st of each year; provided, that the following exceptions to this payment schedule shall be allowed, or required: (1) Except as provided in (2) below, whenever any person, association or organization taxable hereunder conducting or operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than three consecutive weeks, or quits business, sells out, or otherwise disposes of its business or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due. (2) Whenever it appears to the • Director that the collection of taxes from any person, association or organization may be in jeopardy, the Director, after not less than thirty days' notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as the Director shall deem appropriate under the circumstances. (3) There shall be allowed as a deduction for the various taxes imposed by this chapter an amount equal to the amount of bad debts suffered by any such person, association or organization engaged in such activity as a result of their being unable to collect gambling debts. Such deduction shall be allowed to be computed and taken on the tax return for the fourth quarter of each calendar year. Such deduction shall not be allowed unless the person, association or organization engaging in such activities shall first cause to be prepared and filed with said fourth quarter tax return an affidavit, in form satisfactory to the Director, setting forth the amount of bad debts suffered by such person, association or organization. 3.72.040 ADMINISTRATION AND COLLECTION OF TAX. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the Tax and License Division. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the e4t, tfeastffe Director. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate, and complete. The • Director is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The • Director shall make forms available to the public in reasonable numbers in the office of the Director during regular business hours. In addition to the return form, a copy of the taxpayer's quarterly report to the Washington State Gambling Commission required by WAC 230-08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. 3.72.050 METHOD OF PAYMENT. Taxes payable hereunder shall be remitted to the Director on or before the time required by bank draft, certified check, cashier's check, personal check, money order, or in cash. If payment is made by draft or check, the tax shall not be deemed paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the Director be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quarterly report to the Washington State Gambling Commission, shall be filed in the office of the • Director after notation by that office upon the return of the amount actually received from the taxpayer. Page 4 of 19 Tax & Licensing � � � .fi fig 7 N� 1��7T I � � � .�] 1 i N►\Y Ir�� NI �L\'��1�-U FE&PENALTY FOR LATE PAYMENT. If full payment of any tax due under this chapter is not received by the Tax and Licensing Division on or before the date due, there shall be added to the amount due a penalty fee pursuant to BMC 3.86.110.as f 0 31 60 days, 15% of t.,x .a„o mininittai penalty f $4.00� 61 of mefe days, 0 ,; of t&E Ate, miiiimttm peiial�y of $5.00. 1-H addition to this pefiftlt�-, Failttr-e to make payment in fitil of all tax afnettats and penalties V�4-hin six�y days vielation of this seetieff, 3.72.070 NOTICE OF INTENTION TO ENGAGE IN ACTIVITY TO BE FILED. In order that the city may identify those persons who are subject to taxation under this chapter each person, association or organization shall file with the • Director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the • Director, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than ten days prior to conducting or operating the taxable activity. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity but for the purposes of administration of this taxing ordinance only. Failure to timely file shall not excuse any person, association or organization from any tax liability. 3.72.080 RECORDS REQUIRED. (a) Each person, association, or organization engaging in an activity under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer's tax liability hereunder during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under WAC 230-08, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies. (b) All books, records, and other items required to be kept and maintained under this section shall be subject to, and immediately made available for, inspection and audit at any time, with or without notice, at the place where such records are kept, upon demand by the 64t� Director or his designees, for the purpose of enforcing the provisions of this taxing ordinance. (c) Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that the Director may examine them conveniently, the taxpayer shall either: (1) Produce all of the required books, records, or items within this jurisdiction for such inspection within seven days following a request of the local official that he do so; or (2) Bear the actual cost of inspection by the • Director or his designee, at the location at which such books, records or items are located; provided, that a Page 5 of 19 Tax & Licensing taxpayer choosing to bear these costs shall pay in advance to the Director the estimated cost thereof, including, but not limited to round-trip fare by the most rapid means, lodging, meals, and incidental expenses. The actual amount due or to be refunded for expenses shall be determined following said examination of the records. (d) A taxpayer who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee or tax assessment by the tfeastffe Director. (e) This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the • Director by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the Director of the amount of tax so determined by jeopardy assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. 3.72.090 OVERPAYMENT OR UNDERPAYMENT OF TAX. If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns or records of any taxpayer, it is determined by the e4t� Director that within three years immediately preceding receipt by the eity tfeastife Director of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the eily Director of such examination: (1) A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the city within such period of three years shall be credited to the taxpayer's account or shall be credited to the taxpayer at the taxpayer's option. No refund or credit shall be allowed with respect to the Director more than three years before the date of such application or examination; (2) A tax or other fee has been paid which is less than that properly due, or no tax or other fee has been paid, the Director shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessments and fees, and it shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within ten calendar days of such mailing. 3.72.100 FAILURE TO MAKE RETURN. If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, theDirector is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and by mail to notify such taxpayer of the amount so determined, which amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. 3.72.110 TAX ADDITIONAL TO OTHERS. The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Bremerton, except as herein otherwise expressly provided. 3.72.120 RULE MAKING. The • Director shall have the , f+em time to authority to adopt, publish and enforce rules and regulations not inconsistent with this Page 6 of 19 Tax & Licensing chapter or with superior law, for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. 3.72.130 TAXES, PENALTIES AND FEES CONSTITUTE DEBT TO MUNICIPALITY. Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount which shall be in addition to all other existing remedies. 3.72.140 LIMITATION ON RIGHT TO RECOVERY. The right of recovery by the city from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of five calendar years from the date said tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of five calendar years from the date such payment was made. 3.72.150 EFFECTIVE DATE OF TAX. This chapter shall provide for the gambling taxes mentioned herein, to be retroactive to January 1, 1975. 3.72.160 VIOLATION - PENALTIES. Anyone who violates or fails to comply with any of the provisions of this chapter shall, upon conviction, be guilty of a civil infraction subject to the provisions of BMC Chapter 1. 12, and each day any person shall continue to violate or fail to comply with the provisions of this chapter shall be deemed and considered a separate offense. SECTION 5. Section 3.74.050(d) of the Bremerton Municipal Code entitled "Amusement Device Tax" relating to amusement devices is hereby amended to read as follows: 3.74.050 AMUSEMENT DEVICE TAX. (a) Any person, firm or corporation which owns any amusement device for commercial purposes shall be required to remit to the city a tax which shall be equal to the gross receipts derived therefrom multiplied by the rate of two percent (2%). (b) The tax shall be payable in quarterly installments on or before the thirtieth day of the month following the end of the calendar quarter. (c) The tax remittance, as herein provided, shall be accompanied by an amusement device location schedule every calendar quarter. (d) In the event that the amusement device tax is not paid on or before the due date, there shall be added to the amount due a penalty fee pursuant to BMC 3.86.110.as fps C=7One (1) thitYZ�Tdays, ten p€FCenc-(r-v-ro)-vrtax dtte, ; (2) Thifty one (2 1) tl„ ty (till) d fi�� 1%) f to dtte C" 7�u� �rzi c�lvv�-c�r�'r, zrrcc€�3�€�C€�3 w�-^vr�(3) Sixty one (61) or -mar -e days, twentyper-eent (201,-/o) of tax dtte, mipeffal�y of five dellafs SECTION 6. Chapter 3.82 of the Bremerton Municipal Code entitled "Commercial Parking Tax" is hereby amended to read as follows: Page 7 of 19 Tax & Licensing 3.82.010 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context indicates otherwise: A. "Commercial parking business" means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. B. "Commercial parking lot" means a covered or uncovered area with stalls for the purpose of parking motor vehicles. C. "Director" means the Director of Community Development of the City or any officer, agent or employee of the City designated to act on the Director's behalf. D. "Gross proceeds" means and includes the gross receipts collected or accruing by reason of the transaction of the commercial parking business, without any deduction on account of the cost of tangible property sold, labor costs, interest, discount, taxes, or any other costs or expenses whatsoever paid or accrued and without any deduction on account of losses. E. "Person" means any individual, association, corporation, partnership, joint venture, trust, or other entity. F. "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. 3.82.020 TAX RATE - WHO MUST PAY. There is levied upon and shall be collected from every person engaged in a commercial parking business within the City a commercial parking tax in an amount equal to fifteen percent (15%) of the gross proceeds of the commercial parking business. 3.82.030 PAYMENT OF TAX. A. The tax imposed by this chapter shall be due and payable in quarterly installments, on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued. The quarterly periods are as follows: 1. First quarter: January, February, March 2. Second quarter: April, May, June 3. Third quarter: July, August, September 4. Fourth quarter: October, November, December Tax payments shall be filed with the Tax and Licensing Division. B. The Director may require payment of the tax to be accompanied by a written tax return, upon such form and setting forth such information as the Director may reasonably require in order to calculate the amount of tax due to the City. C. The Director shall have the right to require proof of the gross proceeds of the commercial parking business. Each person required to pay the tax imposed by this chapter shall retain records reflecting the gross proceeds of the commercial parking business and the records shall be open at all reasonable hours to inspection by the Director or the Director's designee. D. If the payment of any tax due under this chapter is not received by the City by the last day of the month in which the tax becomes due, the tax shall be delinquent. 3.82.040 TAX - COLLECTION. The tax imposed by this chapter, and all penalties thereon, shall constitute a debt to the City and may be collected by court proceedings in the same manner as any other debt in like Page 8 of 19 Tax & Licensing amount, which remedy shall be in addition to all other existing remedies. Any judgment entered in favor of the City shall include an award to the City of all court and collection costs, including attorneys' fees. Amounts delinquent more than ninety (90) days may be assigned to a third party for collection, in which case the amount of any collection charges shall be in addition to all other amounts owed. Amounts due shall not be considered paid until the City has received good funds for the full amount due or has discharged the amount due and not paid. 3.82.050 OVER OR UNDERPAYMENT OF TAX. In the event that a person makes an overpayment, and within two (2) years of the date of such overpayment makes application for a refund or a credit, the person's claim shall be allowed and a refund made by the City upon determination by the Director that no other sums are owed by the person to the City. If a person determines that the tax has been underpaid and without notice by any party pays the amount due to the City, the amount underpaid and corrected by the person shall not be subject to penalty. 3.82.060 PENALTY FOR LATE PAYMENT. (a) If full payment of any tax due under this chapter is not received by the Director by the last day of the month in which the tax was due, there shall be added to such tax a penalty pursuant to BMC 3.86.110.as fps (1) Otie (I)tet4ifty(30) days, 0 penalcey of twenty five dollars ($25 04) 0 penalty of fifty dollars ($50.00); 0 penal+y ofseventy five ($75 .00). penalties so added or- assessed, and t-�e safne shall beeeme dtte and shall be paidv�,ithifl ten (10) 3.82.070 VIOLATION - PENALTY. A. It shall be a violation of this chapter: (1) For a person required to pay a tax under this chapter to fail or refuse to pay the tax imposed; (2) For a person to evade payment of the tax, or any part thereof, (3) For a person to fail to appear and/or refuse to testify in response to a subpoena issued in any proceeding under this chapter; (4) For a person to testify falsely upon any investigation into the correctness of a return, or upon the hearing of any appeal; or (5) For a person to in any manner hinder or delay the City or any of its officers in carrying out the provisions of this chapter. B. A person violating any of the provisions of this chapter, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars ($500.00). A person is guilty of a separate offense for each and every day during the portion of which any violation of any provision of this chapter is committed, continued or permitted by any such person, and shall be punished accordingly. Page 9of19 Tax & Licensing 3.82.080 APPEAL PROCEDURE. Any person aggrieved by the amount of the tax determined to be due to the City by the Director under the provisions of this chapter, may appeal to the uea-r- ngs Ex.,minef from such determination by filing a written notice of appeal with the Administrative Hearing Examiner pursuant to ('haptef 2.62 of the Bfvf o,4^N "' tmieipal BMC 3.86.140. 3.82.090 CONFIDENTIALITY OF TAX RETURNS. The tax returns made to the City pursuant to this chapter shall not be made public, nor shall they be subject to inspection by a person who is not an employee of or under contract to the City and who is not acting in an official capacity. It shall be unlawful for any person to make public or to inform any unauthorized person as to the contents of a tax return, or to permit inspection of a tax return, except as authorized in this section or as required by law. This section shall not be construed to prohibit the disclosure of information received under this chapter to the Federal Internal Revenue Service, State Department of Revenue, or to tax enforcement officials of any other city in the State of Washington for official purposes only, and this section shall not be construed to prohibit or make unlawful the disclosure of the name and address of any person licensed under this chapter, or of any person signing an application on behalf of an applicant. 3.82.100 DUTIES OF THE IRECTOR. A. The Director shall keep full and accurate records of all funds received under the provisions of this chapter. Upon receipt of any tax or penalty collected under the provisions of this chapter, the Director shall deposit the amounts collected into the street fund of the City. B. In order to carry out the provisions of this chapter, the Director shall have the power to adopt, publish and enforce rules and regulations consistent with this Chapter. C. The Director for good cause shown may extend the time for making and filing any tax return required under this chapter; provided, that any extension in excess of thirty (30) days shall be conditioned upon payment of interest of one percent (1%) for each thirty (30) days or portion thereof on the amount of tax from the date upon which the tax became due. 3.82.110 USE OF PROCEEDS OF TAX. The proceeds of the tax imposed and collected pursuant to this chapter shall be used strictly for transportation purposes in accordance with RCW 82.80.070. SECTION 7. Section 3.86.040 of the Bremerton Municipal Code entitled "General Business License Required" relating to tax returns and payments is hereby amended to read as follows: 3.86.040 WHEN DUE AND PAYABLE - REPORTING PERIODS - MONTHLY, QUARTERLY, AND ANNUAL RETURNS - THRESHOLD PROVISIONS OR RELIEF FROM FILING REQUIREMENTS - COMPUTING TIME PERIODS - FAILURE TO FILE RETURNS. (1) Other than any annual license fee or registration fee assessed under Chapter 5.02 BMC, the tax imposed by those chapters set forth in BMC 3.86.015 shall be due and payable in quarterly installments unless otherwise specifically provided for therein. At the Director's discretion, businesses may be assigned to a monthly or annual reporting period depending on the Page 10 of 19 Tax & Licensing tax amount owing or type of tax. Tax payments are due on or before the last day of the next month following the end of the assigned reporting period covered by the return. (2) Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the Director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true. (3) Tax returns must be filed and returned by the due date whether or not any tax is owed. (4) For purposes of the tax imposed by Chapter 3.48 BMC, any person whose value of products, gross proceeds of sales, or gross income of the business, subject to business and occupation tax after all allowable deductions, is equal to or less than i I *i ettsan ao ($60,0004the tax exemption amount set forth in BMC 3.48.050(2) in the current calendar year shall file a return, declare no tax due on their return, and submit the return to the Director. The gross receipts, deduction amounts and exemptions shall be entered on the tax return even though no tax may be due. (5) A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. (6) Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter, the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it is a Saturday, Sunday, or City or federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or City or federal legal holiday. (7) If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the Director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the Director's estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the City by the taxpayer. The Director shall notify the taxpayer by mail of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. SECTION 8. Section 5.02.050 of the Bremerton Municipal Code entitled "Administration and Enforcement" relating to general business licenses is hereby amended to read as follows: 5.02.050 ADMINISTRATION AND ENFORCEMENT. (a) The Director of FinaneeCommunity Development, or designee, shall have general charge of, and supervision over, the administration and enforcement of this chapter and shall exercise such power and perform all the duties imposed upon him or her. (b) Applicant shall, upon reasonable request, provide or allow the Director to inspect relevant documentation of any licensee for verification of the information provided by applicant/licensee on the business license application. (c) The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. Page 11 of 19 Tax & Licensing SECTION 9. Section 5.02.060 of the Bremerton Municipal Code entitled "General Business License Required" relating to general business licenses is hereby amended to read as follows: 5.02.060 GENERAL BUSINESS LICENSE REQUIRED. Any person who "engages in business" activities in the City as this term is defined in Chapter 3.48 BMC and this chapter shall first obtain a general business license for the current calendar year or unexpired portion thereof, and pay the fees prescribed in this chapter. Applications for general business licenses shall be filed with the Tax and Licensing Division. SECTION 10. Section 5.02.120 of the Bremerton Municipal Code entitled "General Business License Required" relating to general business licenses is hereby amended to read as follows: 5.02.120 APPLICATION PROCEDURE, LICENSE FEE. (a) The business owner shall make application for any business license required under this chapter to the Director on a form prepared by the department, which application shall be accompanied by a receipt from the department showing payment of the required fee. Business licenses shall be granted annually. The license application fee applieablewill be reduced by one-half of the fee for applications received for businesses which begin operation between July 1 to December 31 of the calendar year for which the license is to be issued and is nonrefundable whether or not the license application is later denied. (b) The fee for a business licensee shall be as set forth in Chapter 3.01 BMC as currently enacted and as hereinafter amended. SECTION]]. Section 5.03.040 of the Bremerton Municipal Code entitled "License Required - Applications" relating to provisions for regulatory licenses is hereby amended to read as follows: 5.03.040 LICENSE REQUIRED - APPLICATIONS. The provisions of this chapter shall apply whenever a regulatory license is required by a chapter in this title. The licensee shall be the person or entity who owns the business. Where the license applicant is a corporation, the term "applicant" shall include principal officers and managers. Where the license applicant is a partnership, the term "applicant" shall include principal partners and managers. Applications shall be filed with the Tax and Licensing Division. Each applicant shall provide, at a minimum, the following information: (a) True name and any assumed names or aliases used. (b) Home address and telephone number. (c) Sex, weight, height, color of eyes and hair. (d) Date of birth. (fe) A copy of applicant's identification which must include some form of picture identification, i.e., a driver's license or Washington State identification card. (gf) The business occupation and/or employment history of the applicant for the five (5) years immediately preceding the date of application. (hg) Residence address(es) of the applicant for the five (5) years preceding the date of application. Page 12 of 19 Tax & Licensing (}h) The business name, business address, and telephone number of the proposed business. (}i) A listing and explanation of all services to be provided. (kj) A description of any other business activity to be conducted on the premises or adjoining premises owned and controlled by the applicant. (4k) The principal enterprise of the business if different from the activity being licensed. (+it1) Whether the applicant has ever been convicted, forfeited bail, or pled guilty to any crime, excluding minor traffic offenses. If so, state the charge and the nature of the crime, the name and location of the convicting court and the disposition thereof. (nm) Written declaration by the applicant under penalty of perjury, that the foregoing information contained in the application is true and correct, said declaration being duly stated and signed. (en) Such other relevant identification and information necessary as the C4y CerkDirector may reasonably require to discover the truth of statements made in the application. (pp) Authorization for the City, its agents and employees to seek information and conduct an investigation into the truth of the statements set forth in the application and the qualifications of the applicant for the license. SECTION 12. Section 5.03.050 of the Bremerton Municipal Code entitled "License Issuance - Fees" relating to provisions for regulatory licenses is hereby amended to read as follows: 5.03.050 LICENSE ISSUANCE - FEES. (a) Applications for regulatory licenses must be received by the City Tax and Licensing Division at least three (3) weeks prior to issuance. (b) License fees will be due upon application. The City Council shall establish appropriate fees pursuant to Chapter 3.01. SECTION 13. Section 5.03.120 of the Bremerton Municipal Code entitled "Rule Making" relating to provisions for regulatory licenses is hereby amended to read as follows: 5.03.120 RULE MAKING. The City Director shall have the lauthori1y to adopt, publish, and enforce rules not inconsistent with law for the purpose of carrying out the provisions hereof and it shall be unlawful to violate or fail to comply with any such rule. SECTION 14. Section 5.08.010 of the Bremerton Municipal Code entitled "License Required" relating to street vendor regulatory licenses is hereby amended to read as follows: 5.08.010 LICENSE REQUIRED. It is unlawful for any person to engage in street vending in the City without first obtaining a regulatory license in addition to a business license. Applications for re _gulatory licenses shall be filed with the Tax and License Division. Page 13 of 19 Tax & Licensing SECTION 15. Section 5.08.020 of the Bremerton Municipal Code entitled "Definitions" relating to street vendor regulatory licenses is hereby amended to read as follows: 5.08.020 DEFINITIONS. (a) "Director" shall mean the Finaneial Sefviees Dile, ter- designee. means the Director of Community Development of the City officer, agent or employee of the City designated to act on the Director's behalf. (b) "Street vending" shall mean one who sells food, nonalcoholic beverages, flowers, plants, or other merchandise to the public from any stand, booth, cart, basket, tray, table or other device on any sidewalk, street, highway or public place. (c) "Street vending site" shall mean the location of the street vending unit. (d) "Street vending unit" shall mean the cart, tables and other equipment used in conjunction with a street vending site. (e) "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. SECTIONI6. Section 5.16.010 of the Bremerton Municipal Code entitled "Definitions" relating to temporary merchants, peddlers and mobile food vendor regulatory licenses is hereby amended to read as follows: 5.16.010 DEFINITIONS. In construing the provisions of this chapter, the following definitions shall be applied. (a) "Director" means the Director of Community Development of the City or any officer, agent or employee of the City designated to act on the Director's behalf. (fkb) "Peddler" means any person, either as agent, employee or principal, who carries goods, wares or merchandise of whatever nature or description or any person who offers services from house to house, building to building, or upon any street, highway or public place within the City for the purpose of selling such goods, wares or merchandise or solicitory orders for the same. Exempt from the meaning of this definition shall be newspapers. (bac) "Temporary merchant" means and includes anyone who, with intent to engage temporarily, transiently or itinerantly in such business in the City, sells goods, wares or merchandise or offers services and has no permanent location within the City; provided, a farmer, gardener, or other person who sells, delivers or peddles any fruit, vegetables, berries, eggs or any farm produce or edibles raised, gathered, produced or manufactured by such person is exempt from requirements of this chapter. (sd) "Vending of food from mobile unit" means a mobile unit travelling City streets for the purpose of selling edible merchandise. Exempt from the meaning of this definition shall be those mobile units used specifically for the delivering only of food pursuant to orders taken at an established place of business. (e) "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. SECTIONI7. Section 5.16.020 of the Bremerton Municipal Code entitled "License - Required" relating to temporary merchants, peddlers and mobile food vendor regulatory licenses is hereby amended to read as follows: Page 14 of 19 Tax & Licensing 5.16.020 LICENSE - REQUIRED. It is unlawful to engage in business as a peddler or mobile food vendor in the City without first obtaining a regulatory license in addition to a business license. It is unlawful to engage in business as a temporary merchant without first obtaining a regulatory license. A temporary merchant regulatory license shall be issued in lieu of a business license and licensee shall be exempt from payment of City business and occupation taxes. Applications for re _gulatory licenses shall be filed with the Tax and License Division of the Department of Community Development. SECTION 18. Section 5.16.050 of the Bremerton Municipal Code entitled "License - Inspection" relating to temporary merchants, peddlers and mobile food vendor regulatory licenses is hereby amended to read as follows: 5.16.050 LICENSE - INSPECTION. Any person engaging in the business of peddling, temporary merchant or mobile vending, as defined in this chapter, who has obtained a license therefor from the City4efkDirector, shall on demand by any police officer or business and occupations tax license official forthwith produce the same for inspection. SECTION 19. Section 5.17.010 of the Bremerton Municipal Code entitled "Definitions" relating to charitable solicitation regulatory licenses is hereby amended to read as follows 5.17.010 DEFINITIONS. Whenever used in this chapter: (a) "Director" means the Director of Community Development of the Cit,, or officer, agent or employee of the City designated to act on the Director's behalf. (fkb) "Charitable" shall include recreational, health, social service, humanitarian, educational either actual or purported. "Charitable" shall not include "religious" or "religion" as commonly defined where the proceeds will be used solely for religious purposes as distinguished from educational, recreation, social service, health, humanitarian, or welfare. (c) "Charitable organization" shall mean any organization organized and operated for charitable, educational, or other purposes which is exempt from taxation pursuant to 501(c)(3) of the Internal Revenue Code of 1954, as amended. (hd) "Contributions" shall mean and include the words alms, food, clothing, money, subscription, property, or donations under the guise of a loan of money or property. (se) "Cost of solicitation" shall mean all costs whatever nature incurred in raising the funds solicited, including costs of promotion. (4f) "Costs of promotion" shall mean costs of all publications, goods and services sold, given away, or used as prizes in connection with the solicitation. (eg) "Person" shall mean any individual, firm, co -partnership, corporation, association, society, league, organization, or religious body and includes any trustee, receiver, assignee, agent, or other representative thereof. (fh) "Professional fund raiser" also referred to as "Promoter" shall mean a person who, for compensation plans, promotes, conducts, manages, or carries on or attempts to plan, promote, conduct, manage or carry on any drive or campaign, directly or indirectly, for the purpose of Page 15 of 19 Tax & Licensing soliciting contributions for or on behalf of any charitable organization or engages in the business of soliciting contributions for charitable purposes. A bona fide officer or regular employee of a charitable organization shall not be deemed a professional promoter by reason of his participation by or on behalf of his employer. (gi) "Solicit" and "solicitation" shall mean the request, directly or indirectly, of money, credit, property, financial assistance or other thing of value on the plea or representation that such will be used for a charitable purpose as hereafter defined. "Solicit" and "solicitation" shall include the following methods of requests, collections, of receipts: (1) Any oral or written request. (2) The sale of, offer or attempt to sell any chance, coupon, device, tax, emblem, ticket, book, card, magazine, membership, merchandise, subscription, advertising space, or other thing in connection with which an appeal is made for a charitable purpose or any statement is made that the whole or any part of the proceeds from such sale will be donated to or will go to a charitable purpose. (3) Bingo activities, raffles, and amusement games conducted under Chapter 9.46 RCW and applicable rules of the Washington State Gambling Commission are specifically excluded and shall not be deemed a solicitation under this chapter. (h) "Charitable shall mean an, )ii or-ganii!ed and operated ehar-itable, edtteational, or- other- ptti:poses v�ieh is exempt fFem taxation pufsttant to 5 0 1 (e)(3) of the hitefn ceyeti„e Gode of 1954, as aimetided- (i) "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. SECTION 20. Section 5.17.020 of the Bremerton Municipal Code entitled "License Required" relating to charitable solicitation regulatory licenses is hereby amended to read as follows: 5.17.020 LICENSE REQUIRED. It shall be unlawful for any charitable organization, its members or employees, to solicit, collect or receive contributions in the City of Bremerton without first obtaining a regulatory "charity solicitation license". Applications for regulatory licenses shall be filed with the Tax and License Division of the Department of Community Development. SECTION 21. Section 5.17.050 of the Bremerton Municipal Code entitled "Professional Fund Raiser License - Terms" relating to charitable solicitation regulatory licenses is hereby amended to read as follows: 5.17.050 PROFESSIONAL FUND RAISER LICENSE - TERMS. The license shall not exceed sixty (60) days. A list showing the names of all solicitors and locations of the solicitation must be provided to the City Director. Each solicitor shall provide proper credentials identifying him/herself and the sponsoring charitable organization and the promoter to those persons being solicited. SECTION 22. Section 5.17.060 of the Bremerton Municipal Code entitled "License — Grounds for Denial" relating to charitable solicitation regulatory licenses is hereby amended to read as follows: Page 16 of 19 Tax & Licensing 5.17.060 LICENSE - GROUNDS FOR DENIAL. The City Director shall grant licensing under this chapter unless it is found that one or more of the following facts exist: (a) That the applicant is or has engaged in fraudulent transactions or enterprises relating to soliciting charitable contributions. (b) That the solicitation on behalf of applicant would be a fraud upon the public. SECTION 23. Section 5.17.070 of the Bremerton Municipal Code entitled "Books and Records" relating to charitable solicitation regulatory licenses is hereby amended to read as follows: 5.17.070 BOOKS AND RECORDS. Every person receiving contributions for a charitable purpose shall give a signed, written receipt therefor. Every person managing or supervising the solicitation of contributions for charitable purposes shall maintain a system of accounting wherein all donations and disbursements are recorded and which shall be open to inspection at all reasonable times to the City or such person as (s)he shall designate. SECTION24. Section 5.22.010 of the Bremerton Municipal Code entitled "License - Required" relating to public dance regulatory licenses is hereby amended to read as follows: 5.22.010 LICENSE - REQUIRED. It is unlawful for any person, firm, or corporation to conduct any public dance to which the general public is admitted without first having obtained a regulatory license in addition to a business license. Applications for regulatory licenses shall be filed with the Tax and License Division of the Department of Community Development. SECTION25. Section 5.36.010 of the Bremerton Municipal Code entitled "License - Required" relating to special event regulatory licenses is hereby amended to read as follows: 5.36.010 LICENSE - REQUIRED. No person, firm, company, or corporation shall run, manage, operate, or conduct any circus, parade, carnival games/rides, street fairs, sidewalk sales, or other promotional activity within the City without first obtaining a regulatory license in addition to a business license. ADDlications for reaulatory licenses shall be filed with the Tax and License Division of the Department of Community Development. SECTION26. Section 5.36.050 of the Bremerton Municipal Code entitled "Sponsor to Provide Vendor List" relating to special event regulatory licenses is hereby amended to read as follows: 5.36.050 SPONSOR TO PROVIDE VENDOR LIST. The sponsor of the event will provide the City Director of Community Development or designee with a list of all participating vendors at least three (3) days prior to the event. Page 17 of 19 Tax & Licensing SECTION 27. Section 5.96.020 of the Bremerton Municipal Code entitled "Definitions" relating to erotic dance studio regulatory licenses is hereby amended to read as follows: 5.96.020 DEFINITIONS. In this chapter, the following definitions shall apply, unless the context clearly requires otherwise: (ha) "Dancer" means a person who dances or otherwise performs for an erotic dance studio and who seeks to arouse or excite the patrons' sexual desires. (e) "Depar-tfnefit" means the planning depaftment. (Cb) "Erotic Dance Studio" means place of business or establishment where one or more dancers or other live performers emphasize and seek to arouse or excite the patrons' sexual desires. It shall be prima facie evidence that a place of business or establishment is an erotic dance studio when one or more dancers or performers display or expose, with less than a full opaque covering, that portion of the female breast lower than the upper edge of the areola. (ec) "Inspector" means business license inspector. (d) "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. SECTION28. Section 5.96.050 of the Bremerton Municipal Code entitled "License - Required" relating to erotic dance studio regulatory licenses is hereby amended to read as follows: 5.96.050 LICENSE - REQUIRED. It shall be unlawful to operate, maintain, or manage an erotic dance studio without first obtaining a regulatory license from the City in addition to a business license. Applications for reaulatory licenses shall be filed with the Tax and License Division. SECTION 29. 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 30. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the day of )2017. ERIC YOUNGER, Council President Page 18 of 19 Tax & Licensing Approved this day of )2017. ATTEST: PATTY LENT, Mayor APPROVED AS TO FORM: SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of )2017. EFFECTIVE the day of )2017. ORDINANCE NO. R:\Legal\Legal\Ordinances\Community Development\BMC Title 2, 3 & 5 amendments.docx Page 19 of 19 Tax & Licensing AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5344 amending Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" relating to the Business & Occupation (B&O) Taxes 7K Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: DCD Presenter: Andrea L. Spencer Phone: (360) 473-5283 SUMMARY: The City Council desired to create a one-stop permitting center that incorporates Tax & Licensing. The attached proposed ordinance modifies the Bremerton Municipal Code ("BMC') to update the B&O Taxes definitions to facilitate the transfer of the Tax & Licensing division from the Department of Financial Services to the Department of Community Development and make other related amendments. ATTACHMENTS: Ordinance No. 5344 amending Chapter 3.48 BMC relating to tax & licensing. FISCAL IMPACTS (Include Budgeted Amount): None anticipated. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. 5344 amending the B&O tax definitions in Chapter 3.48 BMC related to the transfer of the Tax & Licensing division from the Department of Financial Services to the Community Development and make other related changes. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action ORDINANCE NO. 5344 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" regarding B & O Taxes. WHEREAS, the City Council desires to amend Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" regarding B & O Taxes in order to update provisions set forth in the definitions section of the code relating to the transfer of the Tax and License Division from the Department of Financial Services to the Department of Community Development, and to make other related changes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION]. Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" is hereby amended to read as follows: 3.48.030 DEFINITIONS. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. (a) Definitions "A": "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: a product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020; plantation Christmas trees; turf, or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances obtained from such an animal. "Agricultural product" does not include animals intended to be pets. "Artistic or cultural organization." As used in this chapter: (1) The term "artistic or cultural organization" means an organization which is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (10) of this definition, for viewing or attendance by the general public. (2) The organization must be a not-for-profit corporation under Chapter 24.03 RCW. Page 1 of 17 Chapter 3.48 BMC — B & 0 Taxes (3) The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation sole under Chapter 24.12 RCW. (4) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws. (5) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the State. (6) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a nonprofit organization, association, or corporation which also would be entitled to the exemption. (7) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation. (8) The amounts received that qualify for exemption must be used for the activities for which the exemption is granted. (9) Services must be available regardless of race, color, national origin, ancestry, religion, age, sex, marital status, sexual orientation, Vietnam or disabled veteran status, or the presence of any mental or physical disability. (10) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to: (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums; (b) A musical or dramatic performance or series of performances; or (c) An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject. (b) Definitions "B": "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. (c) Definitions "C": "Cash discount" means a deduction from the invoiced amount allowed by the seller if the bill is paid within a certain time period or before a specified date. "City" means City of Bremerton, Washington. "Commercial or industrial use" means the following uses of products, including by- products, by the extractor or manufacturer thereof: (1) Any use as a consumer; (2) Any use in the manufacturing of products including articles, substances or commodities. "Competitive telephone service" means the providing by any person of communications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be Page 2of17 Chapter 3.48 BMC — B & 0 Taxes provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made. "Consumer" means the following: (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) Resale as tangible or intangible personal property in the regular course of business; (b) Incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; (c) Incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) Consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under BMC 3.48.050(1)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in this section other than for resale in the regular course of business; (5) Any person who is an end user of software; (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right-of-way of a publicly owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly owned mass public transportation terminal or parking facility; (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in government contracting. Any such person shall be a consumer within the meaning of this definition in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person. Nothing contained in this or any other subsection of this definition shall be construed to modify any other definition of "consumer." Page 3 of 17 Chapter 3.48 BMC — B & 0 Taxes (d) Definitions "D": "Deficiency" means the amount of tax imposed by law less any tax reported by the taxpayer on a tax return. "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the property or exercises dominion and control over the property. "Dominion and control" means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (RCW Title 62A) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. "Department" means the Department of Community Development unless otherwise noted. "Digital automated service;" "digital code," and "digital goods" have the same meaning as in RCW 82.04.192. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b). "Director" means the Director of F:,,.,,,eia CeM ieesCommunity Development of the City or any officer, agent or employee of the City designated to act on the Director's behalf. (e) Definitions "E": "Eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within BMC 3.48.050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non -local jurisdiction above the County level. "Engaging in business," "nexus." (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as Page 4 of 17 Chapter 3.48 BMC — B & 0 Taxes liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1) of this definition. If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one (1) of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license pursuant to Chapter 5.02 BMC. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the City. (c) Soliciting sales. (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. 0) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, and veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training or recruiting employees, agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. Page 5of17 Chapter 3.48 BMC — B & 0 Taxes (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Except as provided in subsection (5) of this definition, delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (4) Not Engaging in Business. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, that person is not engaging in business and therefore is not required to register and obtain a City business license pursuant to Chapter 5.02 BMC or pay City business and occupation taxes pursuant to this chapter: (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. (d) Renting tangible or intangible property as a customer when the property is not used in the City. (e) Attending, but not participating in, a trade show or multiple vendor events. Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g) Soliciting sales by phone from a location outside the City. (h) Providing language interpretive services to the Bremerton Municipal Court. (5) A business located outside the City merely delivering goods into the City by common carrier or other means, including use of its own vehicles, is not required to register and obtain a business license; provided, that it engages in no other business activities in the City. Such business activities do not include those in subsection (4) of this definition. (6) "Nexus." A person has created nexus with the City if, whether itself or by its employees, agents, representatives, independent contractors, brokers or others acting on its behalf, it: (a) Is physically present in the City; (b) Endeavors to maintain a share of the market within the City; or (c) Avails itself of the economic benefits of the City. The City expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus -generating contact or subsequent contacts. "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with Page 6of17 Chapter 3.48 BMC — B & 0 Taxes others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, or takes, cultivates, or raises shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; persons cultivating or raising fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession; or persons who fell, cut, or take plantation Christmas trees from the person's own land or from land in which the person has a present right of possession; or persons meeting the definition of "farmer." "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. Definitions "P: "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. (g) Definitions "G": "Gross income of the business" means the value proceeding or accruing by reason of the business activity engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discounts, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discounts, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discounts paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. (h) Definitions "H": Reserved. (i) Definitions "I": "In this City" or "within this City" includes all federal areas lying within the corporate City limits of the City. (i) Definitions "J": "Janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal, sandblasting, or cleanup related to construction activities. (k) Definitions "K": Reserved. (1) Definition "L": Reserved. Page 7of17 Chapter 3.48 BMC — B & 0 Taxes (m) Definitions "M": "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty (20) percent of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire and not a manufacturer. A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) The production of special -made or custom-made articles; (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) Crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. (n) Definitions "N": "Newspaper," "magazine," "periodical." (1) "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. (2) "Magazine" or "periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. "Nonprofit corporation or nonprofit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as Page 8of17 Chapter 3.48 BMC — B & 0 Taxes hereafter amended. Where the term "nonprofit organization" is used, it is meant to include a nonprofit corporation. (o) Definitions "O": "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over which the person exercises legal dominion and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address; (2) Containing a telephone line listed in a public telephone directory or other similar publication under the business name; (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate State and local business license or registration unless they are exempted by law from such requirement. A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of business above. If a person has no office or place of business, the person's home or apartment within the City will be deemed the place of business. (p) Definitions "P": "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co -partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof. "Port District" means a port district as defined in Chapter 53.04 RCW. "Precious metal bullion," "monetized bullion." "Precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this State, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art. "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty (20) percent or more of the total value of all materials or ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire. Page 9of17 Chapter 3.48 BMC — B & 0 Taxes "Product," "by-product." (1) "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. (2) "By-product" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. (q) Definitions "Q": Reserved. (r) Definitions "R": "Reporting period" means: (1) A one (1) month period beginning the first day of each calendar month (monthly); or (2) A three (3) month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve (12) month period beginning the first day of January of each year (annual). "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquetball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. Amusement and recreation services also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons; (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Automobile parking and storage garage services; (5) Landscape maintenance and horticultural services but excluding (a) horticultural services provided to farmers and (b) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; (6) Service charges associated with tickets to professional sporting events; (7) The following personal services: physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services; and (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. Page 10 of 17 Chapter 3.48 BMC — B & 0 Taxes "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. "Royalties" means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items. (s) Definitions "S": "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in subsection (1)(a), (b), (c), (d), or (e) of this definition following such use; or (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (8) of this definition, if such tangible Page 11 of 17 Chapter 3.48 BMC — B & 0 Taxes personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under BMC 3.48.050(1)(g). (3) "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services, which is taxed as a service in this chapter; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under Chapter 82.16 RCW; (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one (1) month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one (1) month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; (g) The installing, repairing, altering, or improving of digital goods for consumers; (h) The sale of or charge made for tangible personal property, labor and services to persons taxable under subsections (3)(a), (b), (c), (d), (e), (f) and (g) of this definition when such sales or charges are for property, labor and services which are used or Page 12 of 17 Chapter 3.48 BMC — B & 0 Taxes consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this definition and nothing contained in subsection (1) of this definition shall be construed to modify this subsection. (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5) "Sale at retail" or "retail sale" shall also include: (a) The sale of prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For purposes of this subsection, the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may characterized by the vendor or by the purchaser. For purposes of this subsection, the term "sale at retail" or "retail sale" does not include the sale of or charge made for: (i) Custom software; or (ii) The customization of prewritten software. (b) The charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. This also includes the right to access and use prewritten software to perform data processing. For purposes of this subsection (5)(b), "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the State, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind (public road construction). (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to Chapter 35.82 RCW, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting). (8) "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, Page 13 of 17 Chapter 3.48 BMC — B & 0 Taxes labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. (9) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development. (This is reported under the service or other classification.) (10) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. (This is reported under the service and other classification.) (11) "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: (a) Sales in which the seller has granted the purchaser the right of permanent use; (b) Sales in which the seller has granted the purchaser a right of use that is less than permanent; (c) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and (d) Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under this subsection, subsection (11), includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. For purposes of this subsection (11), "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. (12) "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, or the services described in subsection (5)(b) of this definition which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale when rendered to or for consumers. "Sale at wholesale" also includes the sale of telephone business to another communications company as defined in RCW 80.04.0 10 for the purpose of resale, as contemplated by RCW 35.21.715. "Services" means any business activity other than or in addition to those defined in this section. Page 14 of 17 Chapter 3.48 BMC — B & 0 Taxes "Software," "canned software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Canned software" means software that is created for sale to more than one (1) person. For purposes of this chapter, canned software is deemed to be tangible personal property regardless of the method of delivery: tangible media (e.g., disk or installed on hardware) or intangible (e.g., electronically over communications paths). (2) "Custom software" means software created for a single person. (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of canned software does not change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one (1) or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom. "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. (t) Definitions "T": "Tax and Licensing Division" means the Tax and Licensing Division of the Department of Community Development. "Tax year" or "taxable year" means the calendar year. "Taxpayer" means any person, as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created Page 15 of 17 Chapter 3.48 BMC — B & 0 Taxes or generally accredited as such by the State and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for course work successfully completed through the educational program, or an approved branch campus of a foreign degree -granting institution in compliance with Chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree -granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States Secretary of Education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. (u) Definition "U": Reserved. (v) Definitions "V": "Value of products." (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this State of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or articles extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) of this definition, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. (w) Definitions "W": "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. (x) Definitions "X": Reserved. Page 16 of 17 Chapter 3.48 BMC — B & 0 Taxes (v) Definitions "Y": Reserved. (z) Definitions "Z": Reserved. SECTION2. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3.L ective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the day of 2017. ERIC YOUNGER, Council President Approved this day of )2017. PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: SHANNON CORIN, City Clerk PUBLISHED the day of EFFECTIVE the day of ORDINANCE NO. ROGER A. LUBOVICH, City Attorney 2017. 2017. R:ALegal\Legal\Ordinances\Community Development\BMC 3.48.030 Definitions (B & O Taxes).docx Page 17 of 17 Chapter 3.48 BMC — B & 0 Taxes AGENDA BILL CITY OF BREMERTON CITY COUNCIL 7L SUBJECT: Subscriber Agreement with Study Session Date: December 13, 2017 Washington Multi -City Business License & COUNCIL MEETING Date: December 20, 2017 Tax Portal Agency (FileLocal); and 2018 Department: DCD Budget Amendment Presenter: Andrea L. Spencer Phone: (360) 473-5283 SUMMARY: At a City Council Study Session on October 11, 2017, the Administration presented information regarding the upcoming State law affecting Tax & Licensing (Implementation 2018). In summary, the Washington State Legislature passed EHB 2005, which became effective July 2017. The bill seeks to improve the business climate in the state by simplifying the administration of municipal business licenses. The law requires cities to partner with either the State Business License System (BLS) or FileLocal. During the info -only briefing the Council agreed with the Administration that it would be beneficial to the City to partner with FileLocal to implement the new State Law requirements. The City Council agreed that the 2018 Budget should include $40,000 (a preliminary cost estimate) for this implementation. The attached subscriber agreement implements the partnership with FileLocal. ATTACHMENTS: 1) Subscriber Agreement between the Washington Multi -City Business License and Tax Portal Agency (known as "FileLocal') and the City of Bremerton; 2) 2) Exhibit A (Yearly Costs); and 3) 3) Exhibit B (Agreement with Bellevue, Everett, Seattle, and Tacoma) FISCAL IMPACTS (Include Budgeted Amount): The total cost for 2018 is $51,046. The 2018 cost is comprised of $9,000 one-time onboarding costs for Bremerton -specific code requirements and $42,046 2018 subscriber fees. The ongoing annual subscriber costs are described in Exhibit A and are anticipated to decrease annually. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Subscriber Agreement with the Washington Multi -City Business License and Tax Portal Agency (known as "FileLocal'); authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented; and amend the 2018 Budget from $40,000 to $51,046 which will allow this implementation. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action FILE LOCAL AGENCY SUBSCRIBER AGREEMENT This Subscriber Agreement is entered into by and between the Washington Multi - City Business License and Tax Portal Agency d/b/a FileLocal ("Agency") and the City of Bremerton, Washington ("City"). WHEREAS, the Agency was formed and is governed by that certain Washington Multi -City Business License and Tax Portal Agency Interlocal Agreement by and between the Cities of Bellevue, Everett, Seattle, and Tacoma ("Interlocal Agreement") Exhibit B; and WHEREAS, the Interlocal Agreement provides for the acceptance of new cities to join the Agency as either Principals or Subscribers, as those terms are defined in the Interlocal Agreement; and WHEREAS, the City enters into this Subscriber Agreement in order to comply with new State Law (EHB 2005) as passed by the Washington State Legislature in July 2017. The law becomes effective in 2018 and requires cities to partner with either the State Business License System or FileLocal. The bill seeks to improve the business climate in the state by simplifying the administration of municipal business licenses. The City Council has selected to partner with FileLocal; and WHEREAS, the Agency has determined by vote of its Executive Board to accept City as a new Subscriber, as that term is defined in Section 3.cc of the Interlocal Agreement; and WHEREAS, City has agreed to become a Subscriber of the Agency on the terms and conditions set forth in this Subscriber Agreement; NOW, THEREFORE, the Agency and City agree as follows: 1. Scope of Services. Agency shall provide City with a Standard Implementation package of services, comprising access to and use of the General Business License ("GBL"), GBL Renewal, and Taxes functionalities of the FileLocal Portal, utilizing information from the Standard Implementation Guide which will be agreed upon by both parties and will be on file with the City. 2. Commencement of Services. Services provided by Agency to City under this Subscriber Agreement shall commence on ("Commencement Date"). -1- 3. Subscriber Status. City shall have and enjoy all the rights, benefits, and obligations of a Subscriber, as that term is defined in Section 3.cc of the Interlocal Agreement. 4. Compensation Payable to Agency. A. Onboardin_g Costs. At the time of execution of this Subscriber Agreement, City shall pay to Agency a total implementation charge of $9,000, comprising the following onboarding costs: (i) Implementation Cost — eGov: $3,000; (ii) Custom work by eGov to add an additional 90 -day penalty period: $4,000; and (iii) Standardized City Template Recovery Charge: $2,000. B. Yearly Costs. In addition to the Onboarding Costs listed above, City shall also pay the Agency yearly costs in amounts to be determined in accordance with Section 13 of the Subscriber Agreement. The first annual payment of yearly costs shall be prorated based on the signing date of this Subscriber Agreement. Payment of yearly costs is due within 30 days of Subscriber's receipt of the annual invoice from the Agency. Projected yearly costs through the year 2022 are shown on Exhibit A, but are subject to revision and final determination annually pursuant to Section 13.e. of the Interlocal Agreement. 5. Duration of Agreement. This Subscriber Agreement takes effect on the date it is last signed by one of the parties hereto. This Subscriber Agreement will remain in full force and effect for three (3) years after the Commencement Date, unless sooner terminated under the provisions of this Subscriber Agreement or extended by a mutual, written agreement of the parties. 6. Termination of Agreement. Either party may terminate this Subscriber Agreement at any time, with or without cause, by giving notice in writing to the other party. If Subscriber elects to terminate this Subscriber Agreement before the end of the initial term, it must provide written notice to the Executive Board on or before December 31st, with termination effective on the last day of the next calendar year. Upon termination (with or without cause) or expiration of this Subscriber Agreement, Subscriber shall have the same right to copies of data as departing Principals have under Section 17.c. of the Interlocal Agreement. A termination of this Subscriber Agreement by either party for cause will not prevent the terminating party from seeking any other legal remedies it may otherwise have for the violation or nonperformance of any provisions of this Subscriber Agreement. -2- 7. Subscriber's Non -Voting Seat on Executive Board. Pursuant to Section 7.d. of the Interlocal Agreement, City shall select a representative to serve as City's non- voting member of the Agency's Executive Board. This selection shall be made and reported to the Secretary of the Agency no later than 10 days before the next regular meeting of the Executive Board following execution of this Subscriber Agreement. If other cities later join the Agency as Subscribers, then City shall confer with such new Subscriber(s) to determine the means by which to select the non-voting member of the Executive Board to jointly represent the Subscribers. If the voting members of the Executive Board later vote to increase the number of non-voting seats on the Executive Board pursuant to Section 7.d. of the Interlocal Agreement, then the cities who are Subscribers at that time shall confer among themselves to determine the means by which to select the representatives who will fill the non-voting seats on the Executive Board to represent the Subscribers, and further, they shall report their selection(s) as required by Section 7.d. of the Interlocal Agreement. All persons serving as non-voting members of the Executive Board must meet the eligibility requirements of Section 7.e. of the Interlocal Agreement, and their service on the Executive Board is subject to all other requirements of the Interlocal Agreement pertaining to members of the Executive Board. 8. Ownership and Use of Documents. Any records, files, documents, drawings, specifications, data or information, regardless of form or format, and all other materials provided by Agency to City in connection with the services provided to the City hereunder, shall be the property of the Agency whether the project for which they were created is executed or not. 9. Assignment of Intellectual Property Rights. City hereby assigns to the Agency all rights, title, and interest City has or may have in any data and publications created, developed, or adapted by City under this Subscriber Agreement for the Agency's use or benefit. City may not seek to patent or register trademark or copyright in any data or publications assigned to the Agency under this Subscriber Agreement, and City shall cooperate reasonably with the Agency in pursuing any patent, trademark, or copyright registrations available to it. City may not, without the Agency's prior written approval, publish any results of studies and/or services performed or to be performed under this Subscriber Agreement for any purpose other than for Agency use. This intellectual property assignment provision does not apply to any data that is developed by City independently of this Subscriber Agreement. 10. Intellectual Property Infringement. _ If the City or any of its Consultant's work under this Subscriber Agreement infringes upon or misappropriates any patent, copyright, trade secret, trademark or other intellectual property right belonging to a third party, City shall either (a) procure for Agency the right to use such work at no cost to the Agency; or (b) modify such work so that it no longer infringes or misappropriates any such third -party intellectual property right. 11. Independent Contractor. Nothing in this Subscriber Agreement is intended to create the relationship of employer and employee between the parties hereto or any of their employees or contractors. The work of any of City's employees shall -3- remain at all times under the direct control and supervision of City, and not the Agency. City shall provide at its sole expense all materials, office space, and other materials necessary to utilize the services contemplated under this Subscriber Agreement. City is solely responsible for its acts and for the acts of its employees, agents, officers, volunteers, and representatives during the performance of this Subscriber Agreement. Neither City nor any of its employees, agents, officials, volunteers, or representatives is entitled to any benefits accorded Agency employees. The Agency is not responsible for paying wages to any employee, agent, official, volunteer, or representative of City, nor is Agency responsible for withholding or otherwise deducting any customary state or federal payroll deductions, including but not limited to FICA, FUTA, state industrial insurance, state workers compensation, or the like. The Agency assumes no duties of an employer with respect to the City or any employee, agent, official, volunteer, or representative of City. 12. Indemnification. A. City shall protect, defend, indemnify, and hold harmless the Agency, its officers, board members, officials, employees, agents, and volunteers while acting within the scope of their employment or capacity as such, from any and all claims, costs, losses, injuries, demands, judgments, suits, actions, awards of damages, or liabilities of any kind, including attorney's fees, that arise out of, or in any way result from, City's acts, errors, or omissions, or the acts, errors, or omissions of City's employees, consultants, or agents in connection with this Subscriber Agreement. City's obligations under this paragraph extend to any claims, demands, suits, or actions asserted by third parties against the Agency, and any resulting costs, awards of damages, liability of any kind arising out of or resulting in any way from the acts or omissions of City. City will not be required to indemnify, defend, or hold harmless the Agency if the claim, suit, demand, or action for loss, injury, or damages (whether to persons or property, or both) is caused by the sole negligence of the Agency. Where such claims, suits, or actions result from the concurrent negligence of City and the Agency (including its officers, board members, employees, and volunteers) or any third party, or involves those actions covered by RCW 4.24.115, the indemnity provisions provided herein, including the duty and cost to defend, apply only to the extent of City's proportionate fault. In the event that the Agency incurs attorneys' fees, costs, or other legal expenses to enforce the indemnity provisions of this Agreement, all such fees, costs, and expenses shall be recoverable by the Agency from City. B. This indemnification and waiver shall survive the termination of this Subscriber Agreement. Any failure or delay by either party in seeking to ME enforce any provisions of this Subscriber Agreement may not be construed as a waiver of such provisions or of any other provision of this Agreement. 13. Public Records. If City seeks the assistance of Agency in identifying, searching, retrieving, copying, or producing City records that are in the possession or control of Agency and that are or may be responsive to a public records request directed to City under the state Public Records Act, Chapter 42.56 RCW, City agrees to reimburse Agency for its costs associated with fulfilling such request for assistance. 14. Entire Agreement. This Subscriber Agreement, including the Exhibits referenced herein, contains the entire agreement between the parties, and it supersedes all oral or written proposals and contracts previously made on the subject matter hereof. Either party may request changes to this Subscriber Agreement. No changes to this Subscriber Agreement are effective unless reflected in written amendments, signed by both parties. 15. Notices. Except where otherwise noted in this Subscriber Agreement, notices required or permitted under this Subscriber Agreement must be sent to the following addresses, and are considered effective only when delivered by the U.S. Mail, postage prepaid, return -receipt requested, or when personally delivered by messenger or nationally recognized overnight courier service (e.g., Federal Express), addressed to: Agency: FileLocal Attn: Program Manager 700 Fifth Avenue, Suite 4350 P.O. Box 94669 Seattle, WA 98124-4669 City: City of Bremerton Attn: Andrea Spencer, Director Community Development 3456 1h Street, Suite 100 Bremerton, WA 98337 16. Applicable Law, Venue, Attorneys' Fees. This Agreement is governed by and shall be interpreted and construed in accordance with the laws of the State of Washington, excluding its conflict -of -laws rules. The parties specifically understand and agree that King County, Washington, is the exclusive venue for any suit, arbitration, or other dispute -resolution proceeding instituted to resolve any dispute arising out of or related to this Agreement or the parties' performance hereunder. The prevailing party in any such action is entitled to its reasonable attorneys' fees, costs, and expenses incurred, the amount of which shall be fixed by the judge or arbitrator hearing the case, and such fees, costs, and expenses shall be included in the judgment or award. 17. Severability. Any provision or part of this Subscriber Agreement held to be void or unenforceable under any law or regulation shall be deemed stricken and all -5- remaining provisions shall continue to be valid and binding upon the Agency and City. The parties agree that the Subscriber Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as reasonably possible to effectuating the original intent of the parties with respect to the stricken provision. AGREED TO AND EXECUTED BY: WASHINGTON MULTI -CITY BUSINESS CITY OF BREMERTON LICENSE AND TAX PORTAL AGENCY d/b/a FILE LOCAL IN Kevin Fitzpatrick Title: Program Manager Date: APPROVED AS TO FORM: David A. Linehan, Agency Attorney 0I By: Patty Lent Title: Mayor Date: APPROVED AS TO FORM: Bremerton City Attorney M t a� O =F -I � M U � O � U 3-r cli N � O NCJ N cn bA � N ct cn CIJ -0 = Z3 O N � O N N v v by v In In In O �I v v O � O O � O e > v > > > r � v > o o p o 0 o v % O p C,V v v O w v° e4 U Awa o N UUU o 0 ► y N N cy �p O O O N In � In S O O N N N IIj BOO 4 O NN o0 00 N N O NN N N o o �� 0 0 0 0 o N oo o 0 oo iri c m c -i �o � ti o N c -i to to �i Ki rn o m N r co 4c- 0 N \ N N OR a N O L� O �O N c-1 o In O N \ 0 0 O O o w n o^n ti o w pp vc-li 0 0 0 N rn N LI) O N m ti ti 0 �� c o � ti ti N � � � � � � M N In N cn oo o0 t� 'o �O In o0 ti ti M M H N N R:4 1R L 0 F� H N N v v v v v v w a� w ro > So > v > > > r � v > o o p o 0 o v % O p C,V v v U U U w v° e4 U Awa o �� o UUU o 0 EXHIBIT B WASHINGTON MULTI -CITY BUSINESS LICENSE AND TAX PORTAL AGENCY INTERLOCAL AGREEMENT BY AND BETWEEN THE CITIES OF BELLEVUE EVERETT SEATTLE and TACOMA DATED AS OF MARCH 1, 2014 TABLE OF CONTENTS Section Caption Page Recitals....................................................................................... 1 1 Creation of Washington Multi -City Business License and Tax Portal Agency.... 2 2 Term of Agreement......................................................................... 2 3 Definitions..................................................................................... 3 4 Guiding Principles and Goals.............................................................. 6 5 Portal Agency Services..................................................................... 8 6 Portal Agency Powers...................................................................... 10 7 Executive Board: Composition and Operation .......................................... 11 8 Conversion of Status of Participating Cites; Addition of New Principals or Subscribers................................................................................... 15 9 Tax and Finance Operations Committee ................................................. 16 10 Portal Agency Staffing..................................................................... 17 11 Portal Agency Manager..................................................................... 18 12 Assignment of Portal Services Contract From Seattle to Portal Agency............ 19 13 Budget; Cost Allocation; Capital Cost Recovery Charges; Payment of Charges; Delinquencies; Reserve Funds............................................................ 19 14 Retained Authority and Responsibility of Participating Agencies ................... 23 15 Ownership of Property ..................................................................... 23 16 Merger or Consolidation, or Sale of All or Substantially All Assets ................. 24 17 Withdrawal by, or Termination of, a Principal .......................................... 24 18 Amendment of Agreement................................................................ 25 19 Termination of Agreement; Dissolution of Agency .................................... 25 20 Dispute Resolution.......................................................................... 26 21 Insurance..................................................................................... 27 22 Indemnification and Hold Harmless...................................................... 27 23 Intergovernmental Cooperation........................................................... 28 24 Notice......................................................................................... 29 24 Venue......................................................................................... 29 26 Filing.......................................................................................... 29 27 No Third Party Beneficiaries.............................................................. 29 28 Severability.................................................................................. 30 29 Ratification................................................................................... 30 30 Execution, Counterparts and Effective Date ............................................. 30 Listof Exhibits.............................................................................. 32 A Proposed 2014 Portal Agency Budget Summary ........................................ 33 B 2015-2020 Estimated Portal Agency Operating Budget Summary .................. 35 C Capital Cost Recovery Charges............................................................ 37 D Calculation of New Participant Capped Cost Increment and New Participant Labor Cost Increment ................................................... 38 WASHINGTON MULTI -CITY BUSINESS LICENSE AND TAX PORTAL AGENCY INTERLOCAL AGREEMENT THIS AGREEMENT, incorporating all exhibits hereto, is entered into by and between the Cities of Bellevue, Everett, Seattle and Tacoma (collectively, the "Principals") pursuant to the Interlocal Cooperation Act Ch. 39.34 RCW and has been authorized by the legislative body of each Principal. RECITALS WHEREAS, each of the Principals is a city, a general purpose municipal corporation authorized by state law to issue local business licenses and collect a variety of local taxes; and WHEREAS, the Principals seek to make it easier and more efficient for businesses to apply for local business licenses and file local taxes, while retaining local control over local licensing and tax collection functions and policies; and WHEREAS, the Principals seek to accomplish these goals by jointly facilitating the creation of an internet web application gateway (the "Portal") where tax collection and business licensing functions can be collectively administered, and where businesses operating in multiple cities can use a "one-stop" system for tax payment or business license application filing; and WHEREAS, the Principals have engaged in extensive outreach with other cities, state legislators, taxpayers and the business community to understand the interests of these stakeholders in relation to development of the Portal; and WHEREAS, the creation of an intergovernmental entity, in the form of a governmental nonprofit corporation whose members are Principals to oversee the operation of the Portal will enable each Principal to participate in management of the Portal, provide economies of scale to participating cities, and ensure continued control by each Principal of its tax and licensing policy and local tax collections; and WHEREAS, the collection of local taxes is an exclusively governmental activity of each of the cities party to this Agreement; and WHEREAS, the creation of an intergovernmental entity as described in this Agreement will enable the Principals to carry out this exclusively governmental activity as a joint instrumentality; and v. 11.4.13 WHEREAS, it is anticipated that additional cities will elect to use the Portal over time, and that some may wish to do so as subscribers of the Portal's services rather than as principals; and WHEREAS, The City of Seattle has provided start-up funding for the development of the Portal and has conducted a competitive procurement process in which staff from each of the Principals participated with Seattle staff in selecting a preferred vendor to provide portal development, hosting and maintenance services; and WHEREAS, The City of Seattle has entered into a contract with the preferred vendor, and the vendor has begun work to develop the Portal with continued input from staff from each of the Principals; NOW THEREFORE, in consideration of the promises and agreements contained in this Agreement and subject to the terms and conditions set forth, it is mutually understood and agreed by the Parties as follows: SECTION 1. CREATION OF WASHINGTON MULTI -CITY BUSINESS LICENSE AND TAX PORTAL AGENCY. The Washington Multi -City Business License and Tax Portal Agency, ("PORTAL AGENCY") is hereby created as authorized by the Interlocal Cooperation Act (Ch. 39.34 RCW), and shall be a municipal instrumentality of the Principals, jointly organized by the Principals as a nonprofit corporation under Chapter 24.06 RCW as expressly authorized by RCW 39.34.030(3)(b). The Principals each assign to PORTAL AGENCY the responsibility for overseeing the development, operation and maintenance of an internet web application gateway to administer city business licensing and tax collection functions as exclusively governmental activities, all as described herein. SECTION 2. TERM OF AGREEMENT. This Agreement shall have an initial term of approximately five years, ending on December 31, 2019, (the "Initial Term"), and shall thereafter be perpetual, subject to the termination provisions in Section 19 of this Agreement. During the Initial Term no Principal may withdraw from the Agreement, provided that a Principal may convert or be converted to Subscriber status as provided in Sections 8.a, 13A and 131, and may upon action of the Executive Board be terminated from participation in the Agreement as provided in Section 131. v. 11.4.13 SECTION 3. DEFINITIONS. a. Ajreement. The "Agreement" is this interlocal agreement, as it may hereafter be amended or modified, together with all exhibits and appendices hereto, as they may hereafter be amended or modified. b. Articles of Incorporation. The "Articles of Incorporation" or "Articles" are terms defining aspects of the PORTAL AGENCY corporate formation under 39.34.030(3)(b) and consistent with RCW 24.06.025, as they may hereafter be amended by the Executive Board. C. Board Member. A "Board Member" or "Executive Board Member" is the individual representing a Principal on the Executive Board, whether the Chief Financial Officer of such Principal or his/her designated alternate. d. Business and Occupation Taxes. "Business and Occupation Taxes" are Gross Receipt Taxes imposed by a Participating City as an exclusively governmental activity authorized by state law and as defined in RCW 35.102.030. e. Business Licenses. "Business Licenses" are licenses required to be obtained by businesses in order to operate within a Participating City, consistent with state law. f. Bylaws. "Bylaws" as adopted and amended from time to time by the Executive Board shall govern the operations of the PORTAL AGENCY Executive Board, Operations Committee, and the officers thereof. g. Capital Cost Recovery Charge. The "Capital Cost Recovery Charge" is an annual fee charged to all Participating Cities other than the City of Seattle, for the purposes of reimbursing Seattle for a portion of the funding it provided to pay for start-up of the PORTAL AGENCY, as further described in Section 13.j. h. Capped Costs. "Capped Costs" means all items in the PORTAL AGENCY budget excluding: i. Labor Costs unrelated to increases in full or partial staff positions; ii. Costs payable pursuant to the Portal Services Contract with the Vendor; iii. State Auditor's Office Audit costs; iv. Accounting services; v. Insurance; vi. Bank fees; vii. Any unanticipated expenses outside the normal course of business, for example, costs of litigation or damages, uninsured losses, tax or other liabilities resulting from a change in law, and events of force majeure (e.g. fire, explosion, accident, volcanic eruption, flood, epidemic, civil disturbance). i. CPI -U Limit. "CPI -U Limit" means the percentage increase (or decrease) equal to the percentage increase (or decrease) year to year in the Consumer Price Index — Urban for the Seattle/ Tacoma/Bremerton metropolitan area, April —April, calculated by the Federal Bureau of Labor Statistics, or its successor index. v. 11.4.13 3 j. Executive Board. The "Executive Board" is the body described in Section 7 and shall be the governing body of the PORTAL AGENCY. k. Gross Receipts Taxes. "Gross Receipts Taxes" are taxes imposed by Participating Cities which are based on the gross receipts of certain businesses, specifically to include Business and Occupation Taxes as defined by RCW 35.102.030 as well as other taxes imposed by Participating Cities on utilities or businesses that are collected on basis of such gross receipts in accordance with applicable law. For purposes of this Agreement, Gross Receipts Taxes also includes square footage taxes imposed by a Participating City for the act or privilege of doing business in that city and calculated based on the amount of space occupied and used for those business activities within that city. 1. Initial Term. The "Initial Term" is the period from the effective date of this Agreement through December 31, 2019. In. Labor Costs. "Labor Costs" include salary, benefits and other compensation provided to Portal Agency employees (if any) and/or loaned staff. n. Licensees. "Licensees" are businesses or individuals that apply for a Business License from a Participating City or Cities using the Portal. o. Manager. The "Manager" is the chief operating officer for PORTAL AGENCY appointed by and serving at the pleasure of the Executive Board. p. New Participant Capped Cost Increment. The "New Participant Capped Cost Increment" is an amount calculated each budget period to identify the maximum amount by which Capped Costs may increase in the Executive Board approved draft or final budget for such period without unanimous approval of the Executive Board Members representing all Original Principals, as further described in Section 13.b.iv.I and Exhibit D. q. New Participant Labor Cost Increment. The "New Participant Labor Cost Increment" is an amount calculated each budget period to identify the maximum amount by which Labor Costs may increase to provide for additional full or partial staff positions in the Executive Board approved draft or final budget for such period without requiring unanimous approval of the Executive Board Members representing all Original Principals, as further described in Section 13.b.iv.2 and Exhibit D. r. Operations Committee. The "Operations Committee" or "Tax and Finance Operations Committee" is the committee described in Section 9. S. Original Principals. The Original Principals are those four cities initially signing this Agreement: the cities of Bellevue, Everett, Seattle and Tacoma. t. Particivatiniz Cities. All Principals, and all Subscribers, as they may be so constituted from time to time, are collectively referred to as the "Participating Cities" or "Participants," and individually referred to as a "Participating City" or "Participant." U. Population. "Population" is the residential population of a City, according to the most recent annual report issued by the State Office of Financial Management each year determining the population of each city for purposes of taxation and allocation of certain state shared revenues in the following calendar year. v. 11.4.13 4 V. Portal. The "Portal" is an internet web application gateway owned, operated and maintained by the Vendor under contract with the PORTAL AGENCY that affords Taxpayers and businesses a single access point through which they may apply for business licenses from, and pay taxes and fees to, Participating Cities, and receive information related to these functions. W. PORTAL AGENCY. "PORTAL AGENCY" means the Washington Multi-City Business License and Tax Portal Agency. X. Portal Operations Policy. The "Portal Operations Policy" is a separate document adopted by Supermajority Vote of the Executive Board, as it may be amended from time to time, which describes how data will be shared between the Participating Cities and the PORTAL AGENCY, and sets forth operating procedures and rules for the Portal. Y. Portal Services Contract. The `Portal Services Contract" is that certain contract dated as of September 6, 2013 between The City of Seattle and eGov Systems, a Louisiana corporation, to develop software for, and host the Portal operations. The Portal Services Contract is to be assigned to the PORTAL AGENCY by The City of Seattle pursuant to Section 12 of this Agreement. Z. Principal. A "Principal" is a general purpose municipal corporation formed as a city under the laws of the state of Washington which imposes a Business and Occupations Tax and which has accepted the terms of and is a party to this Agreement and has paid its share of initial costs as may be required by the Executive Board as a condition to becoming a Principal. Principals shall receive services offered by the PORTAL AGENCY according to such terms and conditions as may be established by the Executive Board. aa. Representative. The term "Representative" refers to the individual representing a Principal or a Subscriber on the Operations Committee, or his/her designated alternate. bb. Simple Majority Vote. A "Simple Majority Vote" of the Executive Board means a majority (more than 50%) of the votes of the Board Members present constituting a quorum, with each Board Member that is present and voting having one vote. CC. Subscriber. A "Subscriber" is a general purpose municipal corporation, formed as a city under the laws of Washington which has agreed to pay the PORTAL AGENCY for services according to such terms and conditions as may be established by the Executive Board and evidenced by separate contract between the PORTAL AGENCY and such entity. A Principal may convert or be converted to Subscriber status as provided in Sections 8, 13A and 131 and a Subscriber may convert to a Principal as described in Section 8. dd. Supermajority Vote. A "Supermajority Vote" means Executive Board approval of an item accomplished by securing affirmative votes of not less than sixty-six percent (66%) of all voting Board Members of the Executive Board in number, and not less than sixty-six percent (66%) in number of the Original Principals. ee. Taxpayers. "Taxpayers" are businesses subject to local city taxes imposed by a Principal or Subscriber, payment of which is or can be administered by the Portal. v. 11.4.13 ff. Transaction. A "Transaction" is a payment or filing for a Business License, or a payment or filing of an online tax form (where multiple taxes filed on the same online tax form are counted as a single Transaction), made on the Portal by a business to a Participating City; provided, however, that where historical actual Transactions counts are to be used (rather than payments and transactions made on the Portal), then Transactions includes the total actual Business License filings and Gross Receipts Tax filings (where multiple taxes filed on the same tax form are counted as a single Transaction) for the Participating City over the applicable period. The Executive Board may refine this definition from time to time by amending the Portal Operations Policy in order to accommodate expansion of services offered by the Portal or to address other issues. gg. User Fees. "User Fees" are fees and charges imposed on businesses, Licensees or Taxpayers per Executive Board approval as part of PORTAL AGENCY's budget approval process. hh. Vendor. The Vendor is eGov Systems, a Louisiana corporation, which through the Portal Services Contract is providing services to develop, establish, host, own and maintain the Portal, associated online data storage and services. The Vendor has ownership of the Portal. The term Vendor shall also include any successor in interest to eGov Systems or any successor firm(s) or agency(s) with which the PORTAL AGENCY may contract to provide Portal development, hosting, maintenance, and associated online data storage and services. SECTION 4. GUIDING PRINCIPLES AND GOALS. a. Guiding Principles of PORTAL AGENCY. The Principals intend that the PORTAL AGENCY actions be guided by the following guiding principles: i. Local Control — The PORTAL AGENCY will seek to respect and preserve each Participating Cities' authority to set local tax policies. ii. Integrity — The PORTAL AGENCY will be honest, truthful and straightforward. iii. Accountability — The PORTAL AGENCY will be responsible for its actions and decisions, a good steward of public funds and transparent in its operations. iv. Flexibility / Adaptability — The PORTAL AGENCY will strive to nimbly respond to a changing business, technology and policy environment. V. Securi — The PORTAL AGENCY will at all times seek to safeguard Taxpayer, Licensee and Participating City data. vi. Accessibilitv — The PORTAL AGENCY will seek to be accessible and responsive to Taxpayers, Licensees and Participating Cities. vii. Affordability — The PORTAL AGENCY will seek to be affordable to both Participating Cities and businesses and taxpayers using the Portal. Also, fees v. 11.4.13 and charges will be structured so that the addition of new Cities using the Portal does not impose additional costs on prior Participating Cities. b. Goals of the PORTAL AGENCY. The Principals acknowledge and support the following goals which they seek to accomplish by this Agreement and creation of the PORTAL AGENCY: i. Taxpayers and Licensees utilizing the Portal will have a seamless, transparent, user-friendly and efficient experience. ii. It will be easy and timely for Taxpayers and Licensees to access knowledgeable staff at each Participating City to respond to tax or licensing questions. iii. The Portal will have error -free data collection, transmittal and tax payment allocation as between Participating Cities. iv. There will be local control and oversight of tax collections and tax policy. V. Participating Cities will be accountable for the accuracy and timeliness of information they provide to the PORTAL AGENCY and for their customer service response. vi. Decision-making will by jointly exercised by the Principals through the Executive Board. vii. The PORTAL AGENCY will seek to balance the interests of information technology, treasury, finance and tax staff within Participating Cities in the development of the Portal's capabilities and operating rules. viii. The PORTAL AGENCY will comply with all legal requirements, including but not limited to public record-keeping, public meetings, public records, security, and audit requirements. ix. The PORTAL AGENCY will be able to accommodate additional city partners as Principals or Subscribers over time, and be able to process additional types of local taxes and licenses over time. X. The PORTAL AGENCY will support the ability to maximize use of the Portal by Taxpayers and Licensees so that Participating Cities do not need to replicate the Portal's services. xi. The PORTAL AGENCY will maximize compatibility with Participating City's systems of record for data storage and processing. xii. The PORTAL AGENCY will coordinate with the state Department of Revenue. xiii. The PORTAL AGENCY will be a cost effective solution for Participating Cities. v. 11.4.13 7 SECTION 5. PORTAL AGENCY SERVICES. a. Generally. The PORTAL AGENCY has the responsibility and authority for overseeing the Vendor's contractual responsibilities to develop, own, operate, maintain and manage the Portal and for managing the operations of the PORTAL AGENCY. It is expressly contemplated that this scope of services includes: i. The implementation, operation and maintenance of replacement or upgrades of the Portal as necessary or appropriate. ii. The development and adoption of rules for access, use and maintenance of the Portal by City Participants, Taxpayers and Licensees. iii. Expansion of the scope of services offered through the Portal if approved per Subsection 5.c below. iv. Other responsibilities reasonably necessary for the development, operation and maintenance of the Portal. V. Other related or ancillary services. b. Limitation on Authority. The PORTAL AGENCY shall have no authority to set tax rates or tax classifications for Participating Cities, to set local tax policy, tax rules, deductions or exemptions; or take enforcement action on behalf of any Participating City. The PORTAL AGENCY is created by the Principals to manage the Participating Cities' joint participation in the facilitation of an exclusively governmental activity, specifically, the collection of certain local taxes. C. Expansion of Scope of Services. The Portal will be initially established with the capability to handle payment of Gross Receipts Taxes and filing of applications for Business Licenses. PORTAL AGENCY may provide additional capability to pay additional types of city taxes or application for additional types of city licenses through the Portal only upon approval of a Supermajority Vote of the Executive Board; provided, however, that the cost of service expansions will be allocated only to those Participating Cities electing to participate in such services. d. Requirement of Participating Cities to Utilize Services of Portal. i. Gross Receipts Tax Collection Services: Participating Cities shall be required to offer their Taxpayers the option of paying Gross Receipts Taxes through the Portal, if and to the extent such taxes are imposed by a Participating City. ii. Other Services: Except as required by Subsection 5.d.i above, no Participating City shall be required to utilize any other service of the Portal without the prior written approval of such City. iii. Provision of Alternate Collection Options by Participating Cities. Nothing in this Agreement shall be interpreted to preclude a Participating City from v. 11.4.13 offering its Taxpayers or businesses additional means (other than through the Portal) for acquiring Business Licenses or paying any local taxes, including but not limited to payment of Gross Receipts Taxes. iv. Operating Policies and Rules for Use of Portal. In order to protect sensitive Taxpayer data, and assure the relationship between the Portal and Participating Cities remains fully functional and secure, the Executive Board shall adopt a Portal Operations Policy. It is understood and agreed that the access and use of the Portal by any Principal or Subscriber is conditioned on that party consenting in writing to comply with the Portal Operations Policy. Such consent shall be signified by signature of the chief executive officer of each Participating City, or his/her designee, and shall not require further legislative action of the Participating City. The Portal Operations Policy will be regularly reviewed and updated by the Executive Board as necessary or appropriate. e. Additional Activities of the PORTAL AGENCY. At the discretion of the Executive Board, the PORTAL AGENCY may, in addition to the services described in Section 5.a above: i. Participate in forums for Participating Cities to discuss tax policy issues (including but not limited to the Association of Washington Cities Tax Policy Advisory Group or its successor in interest); ii. Provide education to Taxpayers and Businesses regarding the Portal and the PORTAL AGENCY, and work to increase transparency about Participating City tax policies and activities; iii. Provide a forum for businesses and others to provide feedback and suggestions on the use and functionality of the Portal and the taxes and licenses administered through the Portal; and iv. Provide a forum for discussion, coordination and execution of coordinated enforcement activities, provided that the PORTAL AGENCY itself is not authorized to take any tax collection or license fee enforcement actions on behalf of a Participating City. The PORTAL AGENCY shall not use or authorize the use of the Portal or such forum for the purpose of assisting a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition. V. The PORTAL AGENCY shall coordinate with the Washington State Department of Revenue with regard to the Portal's operations and functionality to minimize the need for Taxpayers and Licensees to enter data on the Portal and any separate state tax payment and licensing systems. v. 11.4.13 9 SECTION 6. PORTAL AGENCY POWERS. Through its Executive Board, the PORTAL AGENCY shall have all powers allowed by law for interlocal agencies created under RCW 39.34.030 and Chapter 24.06 RCW, as authorized, amended, or removed by the Executive Board, as provided for in this Agreement and including but not limited to the following: a. Recommend action to the legislative bodies of the Participating Cities; b. Review and approve budget expenditures for the PORTAL AGENCY; C. Establish policies for expenditures of budget items for the PORTAL AGENCY; d. Review and adopt a personnel policy for the PORTAL AGENCY (if applicable); e. Review and approve operating, Portal use, and financial policies for the PORTAL AGENCY; f. Establish a fund or special fund or funds as authorized by RCW 39.34.030 for the operation of the PORTAL AGENCY; g. Conduct regular and special meetings as may be designated by the Executive Board consistent with the state Open Public Meetings Act (Ch. 42.30 RCW) as now or hereafter amended; h. Maintain and manage records in accordance with the state Public Records Act (Ch. 42.56 RCW) as now or hereafter amended, and other applicable state and federal laws and regulations; i. Determine what services shall be offered and under what terms they shall be offered, consistent with Section 5. j . Retain and terminate a Manager; k. Create committees to review and make recommendations and carry out such functions and responsibilities as the Board may expressly provide; 1. Approve strategic plans; In. Approve the addition of new Principals and new Subscribers and the terms of their participating in PORTAL AGENCY and receipt of PORTAL AGENCY services; n. Enter into agreements with third parties for goods and services necessary to fully implement the purposes of this Agreement; o. Establish fees and charges for services provided to Participating Cities or other parties, including but not limited to Taxpayers and Licensees using the services of the Portal; P. Direct and supervise the activities of any committee established and/or any advisory boards, and the Manager; q. Accept grants of funds from any federal, state, local or private agencies and receive and distribute such funds; Receive all funds allocated to PORTAL AGENCY by Participating Cities; v. 11.4.13 10 S. Purchase, take, receive, lease, take by gift, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of PORTAL AGENCY; t. Sell, convey, lease, exchange, transfer, and otherwise dispose of all of its property and assets; U. Sue and be sued, complain and defend, in all courts of competent jurisdiction in PORTAL AGENCY's name; V. Make and alter bylaws for the administration and regulation of its affairs; and W. Any and all other lawful acts necessary to further PORTAL AGENCY's goals and purposes. X. Notwithstanding the foregoing, the PORTAL AGENCY shall not have the authority to issue debt in its own name. The Portal Agency, as a joint instrumentality of its municipal corporation members under Chapter 39.34 RCW, shall have no powers or authority that are not held by Washington cities. SECTION 7. EXECUTIVE BOARD: COMPOSITION AND OPERATION. a. Composition. The Executive Board shall be composed of one (1) Board Member from each Principal, plus at least one (1) non-voting Board Member representing PORTAL AGENCY Subscribers. Such representatives are referred to as a Board Member or Board Members of the Executive Board. b. Powers. The Executive Board shall have final decision making authority upon all policy issues and shall exercise the powers described in Section 6. The Executive Board may delegate responsibility for execution of Executive Board policies and directives and for day-to- day operational decision-making to the Manager, including the hiring and supervision of additional staff positions authorized by the Executive Board, subject to the terms of Section 11. C. Limitation on Total Number of Voting Board Members on Executive Board; Allocation of Executive Board Positions Among Multiple Principals. Notwithstanding the terms of Subsection 7.a, at no time shall the number of Executive Board Members exceed fifteen (15) voting members, and for so long as it remains a Principal, no Original Principal shall be required to share representation of its Board seat with another Principal. If the addition of a new Principal would cause the number of Executive Board voting Board Members to exceed fifteen (15), then the Principals with the smallest Population shall share a single Board Member position in order to reduce the number of Executive Board voting Board Members to fifteen (15); provided that, if over five (5) Principals would be represented by a single Board Member, then an additional v. 11.4.13 11. Board seat shall be converted for shared representation, to be shared by the Principals with the smallest Population. In the event that the number of Principals sharing representation is not evenly divisible by the number of shared seats, then the Principals with the larger Population shall be given the benefit of the allocation (e.g., if 7 Principals are to share 2 seats, then the 3 Principals with the largest Population (within the group sharing representation) shall share one (1) seat, and the four (4) Principals with the smallest populations shall share the second seat). If the number of Principals exceeds 59, then the same process as described above shall be repeated, that is, moving to a maximum of six (6) Principals sharing a seat, and so on (seven (7) Principals sharing a seat, etc.) as necessary to accommodate additional Principals. d. Method of Determining Selection of Subscriber Representatives) or Shared Voting Board Member(s). Subscribers shall initially share one (1) non-voting seat on the Executive Board. The Executive Board may by Supermajority Vote increase the number of non- voting seats for Subscribers, and may define how such additional seats are allocated among Subscribers. Unless otherwise described in the Bylaws, Subscribers sharing representation of the non-voting Board Member shall determine the means by which to select their Executive Board representative and shall inform the Board of their choice at the time of the biennial Executive Board Officer elections (or at such other times as may be required in the event of a vacancy). Similarly, those Principals sharing representation on a single Executive Board seat shall determine the means by which to select the position, and shall make the determination at the same time as the biennial Executive Board Officer elections (or at such other times as may be required in the event of a vacancy). i. Unless otherwise described in the Bylaws, in the event that Subscribers or Principals are unable to agree on a shared representative or Board Member on a timely basis, the remaining Executive Board Members may make the selection for them by a vote of the Executive Board. ii. Individuals representing multiple Subscribers or Principals are expected to confer with the Cities they represent. e. Oualifications to Serve on Executive Board. To serve on the Executive Board, as either a voting or non-voting Board Member, a person must be the appointing city's Chief Financial Officer (e.g., finance director or city treasurer, or equivalent), or their deputy or equivalent. An individual representing multiple cities on a single Executive Board seat, or serving as the non-voting Subscriber representative shall similarly hold such a position within one of the Subscriber cities sharing such representation. f. No Compensation for Serving on Executive Board. All Executive Board Members and their alternates shall serve without compensation from the PORTAL AGENCY. However, the PORTAL AGENCY may pay for or reimburse Executive Board Members and alternates for out-of-pocket costs related to service on the Executive Board. v. 11.4.13 12 g. Term of Office, Vacancies. Executive Board Members shall serve on the Executive Board for so long as they hold a position that qualifies them for the seat, unless the city they represent elects to appoint another individual. Executive Board Members representing multiple Cities (either as a Principal or Subscriber) shall serve until the next Board Officer elections. Any vacancies shall be promptly filled by the appointing Principal, group of Principals, Subscribers, or the Executive Board (per Section 7.d.i), as appropriate. h. Alternates. Each Executive Board Member shall have a single alternate designated in writing. Alternates must meet the same qualification as the designated Board Member or have similar financial expertise and be in a management position within their city. i. Quorum. A simple majority of the Board Members (or their alternates) in number (excluding any Board Member which per Section 17 has given notice of withdrawal or which has been terminated by vote of the Executive Board) shall constitute a quorum of the Executive Board for purposes of taking action. j. Voting. The Executive Board shall strive to operate by consensus. All Executive Board decision on items not listed in Section 7.k shall require a Simple Majority Vote for approval. A Board Member may not split his or her vote on an issue. No voting by proxies or mail -in ballots will be allowed. Voting by a designated Alternate is not considered a vote by proxy. A Board Member representing a Principal that has given notice of withdrawal or which has been terminated by vote of the Executive Board shall be authorized to cast votes at the Executive Board only on budget items to be implemented prior to the withdrawal or termination date. k. Items Requiring a Supermajority Vote for Approval: i. Approval or amendment of the budget or draft budget. (Per Section 13.b.iv, approval of the draft and final budget or amendments thereto also requires unanimous approval of the Original Principals in certain instances). ii. Approval or amendment of user fees and charges. iii. Approval of the Portal Operations Policy or amendments thereto. iv. Adoption or amendment of the Bylaws or amendment of the Articles of Incorporation. V. A decision to acquire assets, equipment, real or personal property, or bind the PORTAL AGENCY to pay total or cumulative any contract amounts over $50,000, provided that, this threshold amount will be indexed on the fifth anniversary of the formation of the PORTAL AGENCY and every five (5) years thereafter by the CPI -U Seattle -Tacoma -Bremerton. vi. Admission of a new Principal. v. 11.4.13 13 vii. Admission of a new Subscriber. viii. The decision to create an additional non-voting seat for Subscribers on the Executive Board. ix. Addition of any staff positions, or partial staff positions, to support PORTAL AGENCY operations. (Per Section 13.b.iv, approval of funding for increases in the number of staff positions also requires unanimous approval of the Original Principals in certain instances). X. Appointing or removing the Manager. xi. Merger, consolidation, sale of all or substantially all assets of the PORTAL AGENCY (See Section 16). xii. Amendment of the Agreement (except for those amendments requiring approval of all legislative bodies of the Principals per Section 18). xiii. Termination or dissolution of the PORTAL AGENCY (See Section 19). xiv. Any other action actions requiring a sixty six -percent (66%) Supermajority vote under Chapter 24.06 RCW. 1. Officers. The Executive Board shall have four officers, a Chair, Vice -Chair, Secretary and Treasurer. It will be the function of the Chair to preside at the meetings of the Executive Board. The Vice -Chair shall assume this role in absence of the Chair. At the first meeting of the Executive Board following the effective date of this Agreement, the officers shall be elected, and shall serve in this capacity through April 1, 2016, whereupon a new Chair and Vice -Chair shall be elected by the Executive Board. Biennially thereafter, the Executive Board shall elect a new Chair and Vice -Chair for two (2) year terms commencing each April 1. In the event of a vacancy in the Chair position, the Vice -Chair shall assume the Chair for the balance of the term of the departed Chair. In the event of a vacancy in the Vice -Chair position, the Executive Board shall elect a new Vice -Chair to serve the balance of the term of the departed Vice -Chair. An officer elected to fill the unexpired term of his or her predecessor shall not be precluded from serving one or more full annual terms of office following the end of such unexpired term. Any officer appointed by the Executive Board may be removed by vote of the Executive Board, with or without cause, in which event the Executive Board shall promptly elect a new officer who shall serve until the next regular officers' board term begins. The Executive Board may appoint persons other than Board Members of the Executive Board to serve as Secretary and Treasurer of the PORTAL AGENCY. The duties of all officers shall be further described in the PORTAL AGENCY Bylaws. In. Staffing. The Manager shall assign agency staff to support the Executive Board as he or she deems appropriate. n. Meetings. The Executive Board shall meet as often as it deems necessary and not less than once a year, at a time and place designated by the Chair of the Executive Board or by a majority of its Board Members. Not less than fourteen (14) days advance notice of regular v. 11.4.13 14 meetings shall be given. Special meetings may be called by the Chair or any two (2) Board Members upon giving all other Board Members not less than ten (10) days prior notice. In an emergency, the Executive Board may dispense with written notice requirements for special meetings, but must, in good faith, implement best efforts to provide fair and reasonable notice to all Executive Board Members. Board Members (or alternates) may participate in meetings by telephone conference or equivalent means of voice communication. At all times the Executive Board shall comply with Ch. 42.30 RCW (Open Public Meetings Act). o. Articles of Incorporation and Bylaws. Unless otherwise provided in the Articles and Bylaws or by vote of the Executive Board, upon the request of any Board Member of the Executive Board, Robert's Revised Rules of Order shall govern any proceeding of the Executive Board. P. Consultation with Operations Committee. It is the intent of this Agreement to seek the active participation and advice of Participating Cities in the determination of PORTAL AGENCY policies and management. To the extent practicable, all items to come before the Executive Board shall have been previously subject to the review, comment and recommendation of the Operations Committee and the Executive Board shall consider input from the Operations Committee in its deliberations. q. Consultation with Businesses, Taxpayers and Participating Cities. Not less than once each year the Executive Board shall seek input from Taxpayers and Participating Cities for the purpose of securing feedback and information on the efficiency and effectiveness of the Portal and PORTAL AGENCY programs. SECTION 8. CONVERSION OF STATUS OF PARTICIPATING CITIES; ADDITION OF NEW PRINCIPALS OR SUBSCRIBERS. a. Loss of Principal Status. As described in Sections 13.d and 131 hereof, a Principal shall be converted to Subscriber for failure to approve its share of the budget or for nonpayment or delinquency in payment of charges and fees. On the date of such conversion, said former Principal shall: i. lose its representation on the Executive Board; ii. lose its right to receive a share of the PORTAL AGENCY assets upon dissolution of the PORTAL AGENCY; iii. become subject to payment of charges and fees in accordance with the then applicable payment formula for Subscribers; and iv. be bound by the terms of the then current Subscriber service contract. The conversion of a Principal to Subscriber shall not discharge or relieve any Principal of its obligations to the PORTAL AGENCY or any other Participating City. v. 11.4.13 15 b. Election to Convert to Subscriber. A Principal may elect to convert to Subscriber status effective the first day of the next budget period by giving notice of its intent to the Governing Board not less than eight (8) months in advance of such effective date; provided that, a Principal may not exercise such election to take effect within the Initial Term. Such conversion shall be effective as proposed without further action of the Executive Board, barring any basis for terminating the Principal and action thereon by the Executive Board. C. New Principals. A city or town otherwise meeting the qualifications of a Principal in Section 3.z hereof may be admitted to the PORTAL AGENCY as a Principal upon Supermajority Vote of the Executive Board as required under Section 71 and its approval and execution of a document confirm. Similarly, a Subscriber may apply to the Executive Board to be converted to Principal status. As a condition of becoming a Principal, whether by conversion or new admission, the Executive Board may require payment or other contributions or actions by the new Principal as the Executive Board may deem appropriate consistent with the Bylaws and Portal Operations Policy, and may set such start date for service as it deems appropriate, it being the intention that the addition of new Principals shall not cause then -existing Principals to incur additional costs. d. New Subscribers. The determination of whether to accept Subscribers shall be made by the Executive Board in a manner similar, and subject to such terms and conditions, as that for accepting new Principals, it being the intention that the addition of new Subscribers shall not cause then -existing Principals or Subscribers to incur additional costs. SECTION 9. TAX AND FINANCE OPERATIONS COMMITTEE. a. Role and Responsibilities. A Tax and Finance Operations Committee ("Operations Committee") shall be established to provide advice and recommendations to the Executive Board. The Executive Board may determine to direct the Operations Committee to perform specific responsibilities within Board -defined parameters. The Operations Committee shall endeavor to promote interagency collaboration, cooperation and information sharing between PORTAL AGENCY Principals and Subscribers. The Operations Committee shall: i. Assist in the review and development of Portal Operations Policy and amendments thereto, Portal development options, proposed new service options, and such other matters as the Executive Board may direct; ii. Make reports and recommendations to the Executive Board from time to time on matters the Operations Committee deems appropriate; iii. Assist in the review and development of proposed PORTAL AGENCY budgets; v. 11.4.13 16 iv. Provide written recommendations with respect to the proposed budget to the Executive Board at the time the proposed budget is submitted to the Executive Board; V. Provide advice, information and recommendations to the PORTAL AGENCY Manager and staff; vi. Assist in communications to City Councils, legislators, business community on PORTAL AGENCY issues; vii. Reach out to technology staff within their respective Cities for input and ideas, and to keep them apprised of PORTAL AGENCY issues; viii. Brief their respective Executive Board Members in advance of Executive Board meetings. b. Membership. Membership of the Operations Committee shall include one (1) Representative from each Principal, appointed by that Principal, plus at least one (1) representative, appointed by the Executive Board, to represent Subscribers. Each Principal shall also appoint in writing a designated alternate to serve on the Operations Committee in case of absence of the primary Representative. C. Qualification to serve on Operations Committee. Representatives and their alternates shall be staff from the Principal they represent, with expertise in city tax policy and administration and/or city financial policy and administration. Persons serving on the Operations Committee are referred to as Representatives (or alternates) and shall serve without compensation from the PORTAL AGENCY. d. Officers. Voting, Meeting Rules. The Operations Committee shall select a Chair and Vice -Chair from among the membership of the Operations Committee. Each Representative on the Committee shall have one vote. The meeting rules for the Operations Committee shall be further defined in the PORTAL AGENCY Bylaws. e. Staffing. The Operations Committee shall be staffed by the Manager and such additional agency staffing as the Manager may deem appropriate. SECTION 10. PORTAL AGENCY STAFFING. a. The PORTAL AGENCY shall be staffed in such manner as the Executive Board determines, including but not limited to the use of loaned employees from Principals, consultants or other service providers, purchase of services from Principals or others, or hiring staff, or any combination of the foregoing. v. 11.4.13 17 b. As described in Section 13.b.iv.2 and Exhibit D, any increase in Labor Costs in excess of the New Participant Labor Cost Increment requires approval of a Supermajority Vote of the Executive Board as well as the approval of all Board Members representing all Original Principals. SECTION 11. PORTAL AGENCY MANAGER. a. Portal Agency Manager Appointment, Responsibilities and Authority. The Executive Board shall be responsible for the appointment and termination of a Manager of the PORTAL AGENCY, and shall request input from the Operations Committee, or any other standing committees created by the Executive Board, regarding any proposed appointment. The Manager shall: i. Be responsible to the Executive Board and shall advise it from time to time on a proposed budget and other appropriate matters in order to fully implement the purposes of this Agreement; ii. Administer the PORTAL AGENCY in its day-to-day operations consistent with the policies adopted by the Executive Board; iii. Appoint persons to fill other staff positions, subject to confirmation by the Executive Board as the Board may require; iv. Submit quarterly budget and operation performance reports to the Executive Board in a form acceptable to the Executive Board; V. Undertake outreach to Taxpayers, Licensees and businesses, as well as to Participating Cities on the effectiveness of the PORTAL AGENCY operations and programs. vi. Manage and oversee performance of the Vendor and other vendors or contractors providing services to the PORTAL AGENCY. vii. Consult in advance with the Operations Committee on issues to come before the Executive Board, including but not limited to working with the Operations Committee in the development of the PORTAL AGENCY's budget and policies. b. Qualifications, Retention and Termination. The Manager shall have experience in technical, financial and administrative fields and his or her appointment shall be on the basis of merit only. The Manager is an "at will" position and may be terminated from his or her position as Manager upon the Supermajority Vote of the Executive Board, without cause. C. Legal Counsel, Accountants and Auditors. Only the Executive Board shall be authorized to hire or retain legal counsel and independent accountants and auditors. Other consultants may be designated in such manner as the Executive Board may determine subject to Sections 6 and 7. v. 11.4.13 18 d. Contracts and Support Services. Subject to the terms of the Bylaws, the Executive Board or the Manager with advice of the Operations Committee shall as necessary contract with appropriate local governments or other third parties for the use of space for its operations, and for staff and auxiliary services including, but not limited to, records, payroll, accounting, purchasing and data processing. Notwithstanding the foregoing, only the Executive Board may approve changes to the Portal Vendor(s) or Portal Vendor Services Contract. SECTION 12. ASSIGNMENT OF PORTAL SERVICES CONTRACT FROM SEATTLE TO PORTAL AGENCY. Promptly following the execution of this Agreement and the filing of such forms with the Washington Secretary of State as are necessary to incorporate the PORTAL AGENCY as a nonprofit corporation, The City of Seattle agrees to assign the Portal Services Contract to the PORTAL AGENCY, together with all rights and responsibilities appurtenant thereto and the PORTAL AGENCY shall agree to accept such assignment, rights and responsibilities, it being the intent of the parties to this Agreement that the PORTAL AGENCY shall assume all responsibility for overseeing and funding the work of the Vendor pursuant to such Portal Services Contract as soon as practicable following formation of the PORTAL AGENCY. SECTION 13. BUDGET; COST ALLOCATION; CAPITAL COST RECOVERY CHARGES; PAYMENT OF CHARGES; DELINQUENCIES; RESERVE FUNDS. a. Budget Fiscal Year. The budget fiscal year shall be either the calendar year, or two calendar years as the Executive Board may determine. The "budget period" corresponds to the fiscal year or years so determined by the Board. b. Budget Approval. The Manager shall develop the proposed operating budget in consultation with the Operations Committee. The Manager and Executive Board shall use their best efforts to meet the budget schedule set forth below, but failure to meet a specified budget deadline shall not constitute a breach of this Agreement. i. The Manager shall present a proposed budget to the Executive Board by no later than May 1 prior to the commencement of the budget period, together with the Operation Committee's recommendations with respect to the proposed budget. ii. By no later than June 15, the Executive Board shall (1) review and revise the draft budget as it deems appropriate; (2) approve the draft budget (including proposed charges to Participating Cities and any user fees to v. 11.4.13 19 Taxpayers and Licensees) by Supermajority Vote; and (3) forward same to Principals. The approved draft budget, and all proposed fees and charges shall be forwarded to Subscribers no later than July 1. iii. The final budget shall be adopted by vote of the Executive Board effective no later than December 31 prior to commencement of the budget period, after receiving information as to: 1. which Subscribers will be continuing to contract with the PORTAL AGENCY; and 2. which Principals have or will approve their shares of the PORTAL AGENCY budget, based on action or information from such Principals received by the PORTAL AGENCY no later than December 1. iv. Vote Required to Approve Budget. Per Section 711, a Supermajority Vote of the Executive Board is required to approve the draft and final budget, provided that unanimous approval of the Executive Board Members representing all Original Principals shall also be required to approve any budget or budget amendment that includes: An increase in Capped Costs greater than the maximum amount allowed per calculation of the New Participant Capped Cost Increment, as further described in Exhibit D. 2. An increase in Labor Costs to increase the number of full or partial staff positions greater than the maximum amount allowed per calculation of the New Participant Labor Cost Increment, as further described in Exhibit D. v. 2014 Budget. Notwithstanding the foregoing, the PORTAL AGENCY budget for the year 2014 will be formally adopted by action of the Executive Board promptly following incorporation of the PORTAL AGENCY and need not be submitted for approval by the Original Principals. The proposed 2014 budget is set forth at Exhibit A. By approving this Agreement each Original Principal also approves their contribution to the 2014 budget in an amount not to exceed that shown in Exhibit A, promptly following the date the PORTAL AGENCY is incorporated. v. 11.4.13 20 C. Payment of Charges. The Board shall determine the timing of payments by Participating Cities, which shall be set forth in the Portal Operations Policy. d. Failure of a Principal to Approve Budget Share. Failure of a Principal to approve its share of the budget before the commencement of the budget period shall result in the Principal being converted to Subscriber status effective as of the first day of the budget period for which the budget was not approved. e. Notification of Final Adopted Budget. Promptly following final adoption of the budget by the Executive Board, the Manager shall provide notice to all Principals and Subscribers as to the terms of the final adopted budget, including their share of PORTAL AGENCY costs, charges and fees, and the payment schedule. f. Budget Modifications. Modifications to the budget shall be approved by a Supermajority Vote of the Executive Board (and also unanimous consent of the Original Principals if required by Section 13.b.iv above) as necessary from time to time to account for changes in expenditures and revenues. g. Cost Allocation and Cost Recovery Principles. The PORTAL AGENCY budget shall be generally allocated between all Participating Cities based on the number of Transactions processed for each City on the Portal. In years 2014 through 2018, the number of Transactions for the Original Principals shall be based on 2012 historical actual pre -Portal use Transaction Counts (set forth in Exhibit A) and the City Transaction Count for any other Participating City shall be based on the most recent historical data for that City prior to it joining the Portal. From and after 2019, the number of Transactions allocated to Original Principals shall be based on the most recent actual annual number of Transactions processed on the Portal for each such City (thus for 2019, the 2017 actual Transaction count will be used); for other Participating Cities, the allocation will be determined considering the actual number of Transactions (if the City had joined before 2019), historical tax and license information, and the experience of Original Principals as to how quickly businesses have adopted use of the Portal since its launch. The details of the cost allocation calculation shall be set forth in the Portal Operations Policy. Nothing in this Agreement shall be construed to prohibit the Executive Board from including factors in addition to the number of City Transactions in the cost allocation formulas as between Participating Cities, so long as the primary basis for allocation remains the City Transaction count. h. User Fees. The PORTAL AGENCY shall impose such reasonable user fees as the Executive Board may determine on Taxpayers and Licensees utilizing the Portal to file tax returns or file business license applications in order to recoup costs of PORTAL AGENCY v. 11.4.13 21 operations, the Portal operation and maintenance, reserves and any other PORTAL AGENCY costs. i. Estimated Six Year Operating Costs. Exhibit B sets forth a general estimate of the annual costs to establish and operate the PORTAL AGENCY between 2014 and 2020, assuming the Original Principals are the only Participating Cities, and includes estimated payment of Vendor's charges pursuant to the Portal Services Contract and other estimated operating costs. This Exhibit is an estimate and is not binding on any of the parties to this Agreement, nor is it binding on the PORTAL AGENCY. j. Capital Cost Recovery Charge. In order to reimburse the City of Seattle for approximately one third of the costs Seattle paid to fund start-up of the Portal Agency, each Participating City other than the City of Seattle will be charged an annual Capital Cost Recovery Charge, in an amount described in Exhibit C. Such Charges shall be imposed each year from and after 2015 until such time as the total Capital Cost Recovery Charges paid reaches $1,400,000. The Capital Cost Recovery Charges will be paid by Participating Cities to the Portal Agency and the Portal Agency shall thereafter remit the total annual amount to Seattle. The Capital Cost Recovery Charge is not considered part of the Portal Agency budget for purposes of calculating Capped Costs or CPI -U limitations on the growth of such costs. k. Payment and Delinquencies. Principals shall promptly pay fees and charges allocable to them. Interest on fees and charges allocable to any Principal not paid when due shall begin accruing interest immediately at the Federal Reserve Prime Rate as of the date the payment was originally due, plus 3% per year. The PORTAL AGENCY shall, within seven (7) days of the due date, send notice to any delinquent Principal and provide a 60 -day cure period from the original due date of the payment. If such fees and interest penalties are not paid in full within 60 days of the original due date, then the Principal delinquent in payment of fees shall upon such 60th day be deemed immediately converted to the status of a Subscriber and subject to penalty as described in Section 8. In the event a Principal converted to Subscriber status by non-payment of fees shall not have paid in full all fees and interest owing by six (6) months after the original due date, then the Executive Board may terminate provision of the PORTAL AGENCY'S services to that former Principal. After one (1) year, the nonpaying former Principal shall be deemed to have withdrawn from this Agreement, but the termination of services shall not absolve the former Principal of its obligation to pay all fees and charges past due, together with interest. 1. Terms of Subscriber Contracts. Subscriber contracts shall include terms consistent with these delinquency provisions, that is, interest shall accrue on delinquent payments at the same rate as provided herein, and service may be terminated if fees and interest are not paid in full within six months. v. 11.4.13 22 M. Reserve Funds. The Executive Board may establish and fund reserve funds to support operations or capital investments for the PORTAL AGENCY, at levels the Executive Board determines to be appropriate; provided that general reserve funds may only be used to support general PORTAL AGENCY operations, maintenance and capital costs and may not be used in support of developing projects or services that will not be utilized by all Principals; and provided further, that no Principal shall be required to contribute to special reserves established exclusively in support of projects or services that the Principal has certified it does not intend to utilize or make available to its Taxpayers and Licensees. n. Use of Funds. Consistent with any use imposed on particular funds by statute, ordinance, contract, this Interlocal Agreement or any bylaws adopted by PORTAL AGENCY, the PORTAL AGENCY may use any available funds for any purpose authorized by this Agreement in connection with an authorized project. SECTION 14. RETAINED AUTHORITY AND RESPONSIBILITY OF PARTICIPATING AGENCIES. Each Participating City shall retain the responsibility and authority for its operational departments and for such equipment and services as are required at its place of operation to connect to PORTAL AGENCY operations, including but not limited to each Participating City's computer and data systems managing processes that provide services the Portal delivers (the City's system of record). Each Participating City shall also retain the responsibility and authority for managing and maintaining the security and privacy of all data that the Participating City links to the Portal. Inter -connecting equipment and services will not be included in PORTAL AGENCY'S budget and operational program, except as the Executive Board may determine. SECTION 15. OWNERSHIP OF PROPERTY. a. Ownership of Property. Excepting the Portal which is owned by the Vendor, all property both real and personal, as well as intellectual property rights or licenses purchased or otherwise acquired pursuant to or in connection with this Agreement shall be owned or held in the name of the PORTAL AGENCY; provided, however, that the Executive Board may convey ownership of specific property, property or use rights. b. Loaned Property. If any Participating City provides equipment or furnishings for PORTAL AGENCY'S use, title to the same shall rest with the respective local entity unless that equipment or furnishing is acquired by the PORTAL AGENCY. v. 11.4.13 23 C. Data. Each Participating City shall retain ownership of its own data and property that may be used in connection with Portal or PORTAL AGENCY operations_ SECTION 16. MERGER OR CONSOLIDATION, OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS. Approval of the merger or consolidation of PORTAL AGENCY with another entity, or the sale of all or substantially all assets of PORTAL AGENCY, shall require a Supermajority Vote. SECTION 17. WITHDRAWAL BY, OR TERNIINATION OF, A PRINCIPAL. a. Notice and Timing. Any Principal may withdraw its membership and terminate its participation in this Agreement by providing written notice to the Executive Board on or before December 31 in any year, and the Executive Board shall promptly inform all other Principals of such notice. That withdrawal shall become effective on the last day of the next calendar year. Notwithstanding the foregoing, no Principal may terminate its participation in this Agreement effective prior to the end of the Initial Term. b. Obligations of departing Principal. A Principal who withdraws, is terminated, changes or is changed to Subscriber status ("departing Principal") shall hold the remaining Principals and Subscribers harmless against any resultant increased capital and/or operating costs allocated to them for the following two (2) budget years (plus the remainder of the current budget year, if applicable), with respect to any Executive Board approved project (excluding the initial launch of the Portal) in which the departing Principal is participating or has agreed to participate prior to notice of withdrawal or notice of change to Subscriber status, but such obligation shall exclude the cost of any Capital Cost Recovery Charges. Such obligation shall be reduced to the extent new Principals or Subscribers are allocated these costs that would otherwise have been chargeable to the departing Principal. After recouping such costs, the Executive Board may authorize reimbursement to the remaining Principals and Subscribers based on a depreciated value of the withdrawing or converting Principal's contribution. C. Rights of departing Principal. Departing Principals shall have rights to copies of all data held by the PORTAL AGENCY relating to that Principal's Taxpayers and Licensee and other data relating specifically to the Principal. d. The termination and/or withdrawal of a Principal shall not discharge or relieve any Principal of its obligations to the PORTAL AGENCY or other Participating Cities. v. 11.4.13 24 SECTION 18. AMENDMENT OF AGREEMENT. This Agreement may be amended upon approval of a Supermajority Vote of the Executive Board except that any amendment affecting the following shall require consent of the legislative authorities of all Principals: a. Expansion of the scope of services provided by the PORTAL AGENCY beyond the scope of expansion authorized in Section 5.c. b. The terms and conditions of membership on the Executive Board. C. Voting rights of Executive Board Members. d. Powers of the Executive Board. e. Principal contribution responsibilities. f. Hold harmless and indemnification requirements. g. Provisions regarding duration, termination or withdrawal. h. The conditions of this Section. This section shall not be construed to require legislative authority consent for the addition of a new Principal or agreement to serve an additional Subscriber, or to expand or contract the services purchased by any Principal or Subscriber or offered by the PORTAL AGENCY. SECTION 19. TERIVIINATION OF AGREEMENT; DISSOLUTION OF AGENCY. a. Generally. This Agreement may be terminated upon the approval of a Supermajority Vote of the Executive Board. The termination shall be by direction of the Executive Board to wind up business by a date specified by the Executive Board, which date shall be at least one (1) year following the date of the vote to terminate. Upon the final termination date, this Agreement shall be fully terminated. b. Distribution of Property on Termination of Agreement. Upon termination of this Agreement, all property acquired during the life of the Agreement remaining in ownership of PORTAL AGENCY shall be disposed of in the following manner: i. Real or Personal Property. All real or personal property purchased pursuant to this Agreement and all unexpended funds or reserve funds, net of all outstanding PORTAL AGENCY liabilities, shall be distributed to those Principals still participating in the PORTAL AGENCY on the day prior to the termination date and shall be apportioned between Principals based on the ratio that the average of each Principals' contributions to the operating budget over the preceding five (5) years bears to the total of all then remaining Principals' user fees paid during such five-year period. The Executive Board shall have the discretion to allocate the real or personal v. 11.4.13 25 property and funds as it deems appropriate, and the apportionment, determined consistent with the preceding sentence, need not be exact. ii. Intellectual PrOerty Rights. The Vendor will own, or have rights to, all its intellectual property per the terms of the Portal Services Contract, including the right to license the Portal operating system exclusively to the PORTAL AGENCY, its Principals and Subscribers. The Portal license rights, and all rights granted relating thereto, terminate with the termination of the Portal Services Contract. Notwithstanding this termination, the Principals and Subscribers shall retain the right after termination of the Portal license rights to acquire any and all information and data, including but not limited to Taxpayer, Licensee and their respective City data, then currently held by the Vendor or the PORTAL AGENCY. Upon termination of the Portal Development and Services Contract or the dissolution of the PORTAL AGENCY, any and all intellectual property owned by the PORTAL AGENCY (which excludes the Portal and any other intellectual property owned by the Vendor) will be transferred in its entirety to Principal with the largest Population. If said Principal does not agree to accept the intellectual property owned by the PORTAL AGENCY, it shall then be transferred in its entirety to the Principal with the next largest population, and so on should that Principal not agree to accept the intellectual property. If no Principal agrees to accept the intellectual property, then the Executive Board will attempt to sell the intellectual property at fair market value and distribute the proceeds in proper proportion to the current Principals in accordance with Subsection 19.b.i. iii. Loaned Property. In the event of dissolution or termination of the PORTAL AGENCY, assigned or loaned assets shall be returned to the lending entity. iv. Allocation of Liabilities. In the event outstanding liabilities of the PORTAL AGENCY exceed the value of personal and real property and funds on hand, all Principals shall contribute to retirement of those liabilities in the same manner as which they would share in the distribution of properties and funds. c. Notwithstanding the foregoing, the Agreement may not be terminated if to do so would abrogate or otherwise impair any outstanding obligations of the PORTAL AGENCY, unless provision is made for those obligations. SECTION 20. DISPUTE RESOLUTION. a. Whenever any dispute arises between a Principal or the Principals or between the Principals and the PORTAL AGENCY (referred to collectively in this section as the "parties") v. 11.4.13 26 under this Agreement which is not resolved by routine meetings or communications, the parties agree to seek resolution of such dispute by the process described in this section, which shall also be binding on Subscribers. b. The parties shall seek in good faith to resolve any such dispute or concern by meeting, as soon as feasible. The meeting shall include the Chair of the Executive Board, the Manager, and a representative(s) of the Principal(s), if a Principal(s) is involved in the dispute, and/or a person designated by the Subscriber(s), if a Subscriber(s) is involved in the dispute. C. If the parties do not come to an agreement on the dispute or concern, any party may request mediation through a process to be mutually agreed to in good faith between the parties within 30 days, which may include binding or nonbinding decisions or recommendations (whichever is mutually agreed to). The mediator(s) shall be mutually agreed upon and shall be skilled in the legal and business aspects of the subject matter of this Agreement. The parties shall share equally the costs of mediation and assume their own costs. SECTION 21. INSURANCE. The Executive Board, Manager, and Operations Board shall take such steps as are reasonably practicable to minimise the liability of the Participating Cities, including but not limited to the utilization of sound business practice. The Executive Board shall determine which, if any, insurance policies may be reasonably practicably acquired to cover the operations of the Portal Agency and the activities of the Parties pursuant to this Agreement (which may include Directors and Officers, Commercial General Liability, Auto, Workers' Compensation, Stop Gap/Employer's Liability, errors and omissions, crime/ fidelity insurance, CyberRisk), and shall direct the acquisition of same. [ SECTION 22. INDEMNIFICATION AND HOLD HARMLESS. Each Principal shall indemnify and hold other Principals, their officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of that Principal's negligent acts or omissions in connection with the performance of its obligations under this Agreement, except to the extent the injuries or damages are caused by another Principal. a. Each Principal shall indemnify and hold the PORTAL AGENCY and its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of that Principal's negligent acts or omissions in connection with the performance of its obligations under this Agreement, except to the extent the injuries and damages are caused by the PORTAL AGENCY. v. 11.4.13 27 b. As provided in its Articles of Incorporation, the PORTAL AGENCY shall indemnify and hold each Principal its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of the PORTAL AGENCY'S acts or omissions in connection with the performance of its obligations under this Agreement, except to the extent the injuries and damages are caused by any Principal. C. Subscribers shall be required to agree to indemnify and hold harmless each Principal and the Portal Agency, their officers, officials, employees and volunteers from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of Subscribers negligent acts or omissions in connection with its use of the Portal. To such degree as the Executive Board determines to be reasonable, appropriate, and consistent with applicable law and to be in the best interests of the Portal Agency, the Portal Agency may also indemnify and hold harmless Subscribers. d. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of a party hereto and the PORTAL AGENCY, its officers, officials, employees, and volunteers, the party's liability hereunder shall be only to the extent of the party's negligence. It is further specifically and expressly understood that the indemnification provided in this Section constitutes the party's waiver of immunity under Industrial Insurance Title 51 RCW, solely for the purpose of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. e. Each party shall give the other parties proper notice as provided in Section 24, of any claim or suit coming within the purview of these indemnities. Termination of this Agreement, a Principal's withdrawal from the PORTAL AGENCY, or a Principal's conversion to Subscriber status (collectively for purposes of this subparagraph "Termination"), shall not affect the continuing obligations of each of the parties as indemnitors hereunder with respect to those indemnities and which shall have occurred prior to such Termination. SECTION 23. INTERGOVERNMENTAL COOPERATION. The PORTAL AGENCY shall cooperate with local, state and federal governmental agencies in order to maximize the utilization of any grant funds for equipment and operations and to enhance the effectiveness of the PORTAL AGENCY's operations and minimize costs of service delivery. v. 11.4.13 28 SECTION 24. NOTICE. Notices required to be given to the PORTAL AGENCY under the terms of this Agreement shall be directed to the following unless all Principals are otherwise notified in writing: Chair, PORTAL AGENCY Executive Board c/o his/her Principal agency's address Notices to Principals or Subscribers, Board Members or Representatives required hereunder may be given by mail, overnight delivery, facsimile or email (with confirmation of transmission), telegram, or personal delivery. Each Principal shall provide the Chair of the PORTAL AGENCY Executive Board written notice of the address for providing notice to said Principal. Any Principal wishing to change its mail or email address shall promptly notify the Chair of the Executive Board. Notice or other written communication shall be deemed to be delivered at the time when the same is postmarked in the mail or overnight delivery services, sent by facsimile or email (with confirmation of transmission), sent by telegram, or received by personal delivery. SECTION 25. VENUE. The venue for any action related to this Agreement shall be in the Superior Court in and for King County, Washington at Seattle, or if applicable, in Federal District Court, Western District of Washington. SECTION 26. FILING. As provided by RCW 39.34.040, this Agreement shall be filed prior to its entry in force with the King County Department of Executive Services Division of Records and Licensing Services, or its successor, Records and Elections, or, alternatively, listed by subject on a Principal's web site or other electronically retrievable public source. SECTION 27. NO THIRD PARTY BENEFICIARIES. There are no third -party beneficiaries to this Agreement. No person or entity other than a party to this Agreement shall have any rights hereunder or any authority to enforce its provisions, and any such rights or enforcement must be consistent with and subject to the terms of this Agreement. v. 11.4.13 29 SECTION 28. SEVERABILITY. The invalidity or any clause, sentence, paragraph, subdivision, section or portion of this agreement shall not affect the validity of the remainder of the Agreement. SECTION 29. RATIFICATION. All prior acts taken by the Principals and the PORTAL AGENCY consistent with this Agreement are hereby ratified and confirmed. SECTION 30. EXECUTION, COUNTERPARTS AND EFFECTIVE DATE. This Agreement and any amendments thereto, shall be executed on behalf of each Principal by its duly authorized representative and pursuant to an appropriate motion, resolution or ordinance. This Agreement may be executed in any number of counterparts, each of which shall be an original, but those counterparts will constitute one and the same instrument. This Agreement shall be deemed adopted and effective as of March 1, 2014, subject to prior approval by the legislative bodies of all four Original Principals, execution by each Original Principal, and prior filing of same as required by Section 26. H H (Remainder of page left blank intentionally) H H H H v. 11.4.13 30 IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates set forth below. City of Bellevue City Manager Date Approved as to Form: City Attorney Date The City of Seattle Mayor Date Approved as to Form: City Attorney Date City of Everett Mayor Date Approved as to Form: City Attorney Date City of Tacoma City Manager Date Approved as to Form: City Attorney Date v. 11.4.13 31 List of Exhibits A. Proposed 2014 PORTAL AGENCY BUDGET SUMMARY (including number of Transactions used for cost allocation as between Original Principals) B. 2015-2020 Estimated PORTAL AGENCY Operating Budget Summary C. Capital Cost Recovery Charges D. Calculation of New Participant Capped Cost Increment and New Participant Labor Cost Increment v. 11.4.13 32 Exhibit A Proposed 2014 PORTAL AGENCY OPERATING BUDGET SUMMARY (including number of Transactions used for cost allocation as between Original Principals) (June to December 2014) Labor Totall 152,649 Contracts Tota 12 27,000 Overhead Tota 13 12,500 Vendor Costs4 180,208 Operating Reserves 55,854 Total Budgeted Costs 428,210 Total Budgeted Revenues 428,210 Estimated User fee Revenues5 72,566 Estimated Revenue from City Cost Allocations6 355,644 City of Seattle Cost Allocation? 245,394 City of Bellevue Cost Allocation 35,654 City of Tacoma Cost Allocation 56,903 City of Everett Cost Allocation 17,782 This budget estimates a six month budget beginning after the Multi -City Business License and Tax Portal is up and running in mid -2014, the first six months are covered by the Portal 1 This budget includes 2.5 FTE: the Portal Manager, a half-time administrative assistant and a full-time IT Project Manager/Business Analyst. The personnel for these positions will be provided by the City of Seattle and the costs in this budget include the fully -funded (salary, benefits, etc.) labor costs for all 2.5 positions. A separate loaned staffing agreement will be entered into between the Portal Agency and the City of Seattle in 2014 for these staff. 2 Includes contracts for outside services such as Accounting, Insurance, Bank and the State Auditor. 3 Funding for miscellaneous overhead items such as legal fees, office and operating supplies, printing and licenses/memberships. 4 Includes costs estimated payable to -Gov Systems under the Portal Services Contract in 2014, from and after the Portal goes "live." For the first five years of Portal operation,.e-Gov Systems will charge the Portal Agency $1.25 every time a business or taxpayer makes an online Portal filing, whether or not tax is owing. 5 Assumes the Executive Board approves a proposed user fee of $4 per online session per City (the proposed fee would be payable only when tax is owed; multiple tax and/or license filings on the same session would incur only one fee). This user fee is based on an estimated Portal use adoption rate by business and taxpayers of 15%. This adoption rate is expected to grow considerably each year. 6 Cost Allocations are based on the 2012 Transaction count for each Original Principal, shown in the table at the End of this Exhibit A. Excludes Seattle's contributions to start-up costs in 2014. Also excludes labor and operating costs for which Seattle will be reimbursed from the Total Budget shown above, per the loaned staffing agreement. v. 11.4.13 33 Implementation Project costs funded by Seattle. This budget estimates also assumes only four cities participate in 2014. Transaction Counts Calculations used for Cost Allocation as between Original Principals Transaction Based on 2012 actual business license filings, business and occupations Counts and gross receipts tax filings for each Original Principal Everet Seattle Bellevue Tacoma t Total Transactions 212,457 30,927 50,000 14,392 307,776 % Allocation 69% 10% 16% 5% 100% v. 11.4.13 34 Exhibit B: Multi -City Business License and Tax Portal Agency 2015-2020 Estimated Operating Budget Summary This budget is an estimated six year budget and assumes only four cities participating. 8 This budget includes 2.5 FTE: the Portal Manager, a half-time administrative assistant and a full-time IT Project Manager/Business Analyst. The personnel for these positions will be provided by the City of Seattle and the costs in this budget include the fully -funded (salary, benefits, etc.) labor costs for all 2.5 positions. A separate loaned staffing agreement will be entered into between the Portal Agency and the City of Seattle in 2014 for these staff. 9 Includes contracts for outside services such as Accounting, Insurance, Bank and the State Auditor. 1° Funding for miscellaneous overhead items such as legal fees, office and operating supplies, printing and licenses/membersbips. " Includes costs estimated payable to -Gov Systems under the Portal Services Contract in 2014, from and after the Portal goes "live." e -Gov Systems will charge the Portal Agency $1.25 every time a business or taxpayer makes an online Portal filing, whether or not tax is owing. This per -filing cost is fixed for the first five lyears of Portal operation. 2 Assumes the Executive Board approves a proposed user fee of $4 per online session per City (the proposed fee would be payable only when tax is owed; multiple tax and/or license filings on the same session would incur only one fee). This user fee is based on an estimated Portal use adoption rate by business and taxpayers of 15%. This adoption rate is expected to grow considerably each year. 13 Cost Allocations are based on the 2012 Transaction count for each Original Principal, shown in Table 2. 14 Excludes Seattle's contributions to start-up costs in 2014. Also excludes labor and operating costs for which Seattle will be reimbursed from the Total Budget shown above, per the loaned staffing agreement. v. 11.4.13 35 2015 2016 2017 2018 2019 2020 Labor Total° 314,740 324,182 333,908 343,925 354,243 364,870 Contracts Total' 55,188 56A02 57,643 58,911 60,207 61,532 Overhead Total10 15,330 15,667 16,012 16,364 16,724 17,092 Vendor Total" 344,888 383,360 421,832 460,304 479,540 498,776 Operating Reserve -15% 53,668 7,420 7,467 7,516 4,681 4,733 Total Estimated Budget 783,814 787,031 836,862 887,021 915,396 947,003 Estimated User Fee Revenue" 193,510 241,888 290,266 338,643 362,832 387,021 Estimated qty Cost Allocation 602,057 555,622 557,306 559,322 563,749 571,414 Revenues13 City of Seattle," 41SA19 383,379 384,541 385,932 388,987 394,276 City of Bellevue 60,206 55,562 55,731 55,932 56,375 57,141 City of Tacoma 96,329 88,900 89,169 89,492 90,200 91,426 City of Everett 30,103 27,781 27,865 27,966 28,187 28,571 8 This budget includes 2.5 FTE: the Portal Manager, a half-time administrative assistant and a full-time IT Project Manager/Business Analyst. The personnel for these positions will be provided by the City of Seattle and the costs in this budget include the fully -funded (salary, benefits, etc.) labor costs for all 2.5 positions. A separate loaned staffing agreement will be entered into between the Portal Agency and the City of Seattle in 2014 for these staff. 9 Includes contracts for outside services such as Accounting, Insurance, Bank and the State Auditor. 1° Funding for miscellaneous overhead items such as legal fees, office and operating supplies, printing and licenses/membersbips. " Includes costs estimated payable to -Gov Systems under the Portal Services Contract in 2014, from and after the Portal goes "live." e -Gov Systems will charge the Portal Agency $1.25 every time a business or taxpayer makes an online Portal filing, whether or not tax is owing. This per -filing cost is fixed for the first five lyears of Portal operation. 2 Assumes the Executive Board approves a proposed user fee of $4 per online session per City (the proposed fee would be payable only when tax is owed; multiple tax and/or license filings on the same session would incur only one fee). This user fee is based on an estimated Portal use adoption rate by business and taxpayers of 15%. This adoption rate is expected to grow considerably each year. 13 Cost Allocations are based on the 2012 Transaction count for each Original Principal, shown in Table 2. 14 Excludes Seattle's contributions to start-up costs in 2014. Also excludes labor and operating costs for which Seattle will be reimbursed from the Total Budget shown above, per the loaned staffing agreement. v. 11.4.13 35 Transaction Counts Calculations used for Cost Allocation as between Oriainal Principals Transaction Counts Based on 2012 actual business license filings, business and occupations and gross receipts tax filings for each Original Principal Recommended Adoption Everet Rate Seattle Bellevue Tacoma t Total Transactions 212,457 30,927 50,000 14,392 307,776 % Allocation 69% 10% 16% 5% 100% Estimated Adoption Rates e -Gov Systems 2014 Recommended Adoption This is the recommended rate of adoption from e -Gov systems based on previous implementations. Rate 2018 2019 2015 2016 2017 2018 2019 2020 Adoption Rate 40% 50% 60% 70% 75% 80% CPI -U Rates Forecast v. 11.4.13 36 2014 2015 2016 2017 2018 2019 2020 CPI -U Forecast (Bellevue) 2.20% 2.20% 2.20% 2.30% 2.30% 2.30% 2.30% v. 11.4.13 36 Exhibit C Capital Cost Recovery Charges Beginning in 2015, every Participating City other than the City of Seattle will pay a yearly Capital Cost Recovery Charge to the Portal Agency which in turn will remit the annual total of such Charges paid to the City of Seattle. The Charges will remain in place until the total amount of $1,400,000 has been remitted to Seattle. The Executive Board shall determine the timing for payment of the Capital Cost Recovery Charges. Each Participating City's Capital Cost Recovery Charge will be determined based on the number of Transactions allocated to such City in the budget year in which the Charge will be collected, and in accordance with the following table: Category: mallest ity Smaller city Small City Medium City Large City Transaction Count < 1000 1001- 4000 4,001 to 14,401 to >31,001 allocated to the 14,400 31,000 City in the budget year Capital Cost $500 1000 $2000 $4000 $6000 Recovery Charge payable annually v. 11.4.13 37 Exhibit D Calculation of New Participant Capped Cost Increment and New Participant Labor Cost Increment New Participant Capped Cost Increment. The New Participant Capped Cost Increment is an amount calculated in the development of each budget (or budget amendment) to identify the maximum amount by which Capped Costs may increase in the budget period without requiring unanimous consent of the Executive Board Members representing all four Original Principals. The Increment is determined by identifying the "CPI -U Limit for Capped Costs per Transaction" for the applicable budget period, assuming the Portal Agency has the same number of Participating Cities as the prior budget period and the Capped Costs from the previous period are inflated by the CPI -U Limit. The Capped Cost per Transaction is then multiplied by the number of Transactions attributable to new Participating Cities joining the Portal Agency in the budget period, and the resulting total is the maximum amount by which the Capped Costs in the new budget period may be increased over and above the Status Quo Capped Cost without requiring unanimous consent. Illustration: Calculation of New Member Capped Cost Increment for Year X Assuming: 1 year bud et eriod; addition of 2 member cities proposed in Year Part 1: Calculating CPI -U Limit for Capped Costs Per Transaction CPI -U Limit for Capped Cost for Year X, $16,000 • Inflate Capped Costs for the previous year by the CPI -U Limit. Estimated Transaction Count for Year X from currently 125,000 Participating Cities • Includes all Cities participating as Principals or Subscribers in the previous year. • Transaction count is that used for purposes of estimating the cost allocations of these Participating Cities in Year X. Capped Cost Per Transaction ($16,000 =125,000) $0.128 Part 2: Calculating New Member Capped Cost Increment New Member Transaction Count 10,000 • Total Transactions assigned to the 2 new Participating Cities for purposes of budget allocation in Year X New Member Capped Cost Increment for Year X ($0.13 x 10,000) $1,280 Capped Costs in Year X may be increased by Supermajority Vote to a level of $17,280. Capped Costs in excess of that amount would require Supermajority Vote and unanimous approval by Board Members representing the Original Principals. v. 11.4.13 38 New Member Participant Labor Cost Increment. The New Participant Labor Cost Increment is an amount calculated in the development of each budget (or budget amendment) to identify the maximum amount by which Labor Costs may increase in the budget period without requiring unanimous consent of the Executive Board Members representing all four Original Principals. The Increment is determined by identifying the "Status Quo Labor Cost per Transaction" for the applicable budget period, assuming the Portal Agency has the same number of Participating Cities and staff as the prior budget period. The Labor Cost per Transaction is then multiplied by the number of Transactions attributable to new Participating Cities joining the Portal Agency in the budget period, and the resulting total is the maximum amount by which the Labor Costs in the new budget period may be increased over and above the Status Quo Labor Cost without requiring unanimous consent. Illustration: Calculation of New Participant Labor Cost Increment for Year X Assuming, 1 year budget period, addition of 2 member cities proposed in Year X Part 1: Labor Cost Per Transaction Status Quo Labor Costs for Year X $350,000 • Assuming same number of staff (including employees, if any, and loaned staff) as were engaged by the Portal Agency in the previous year, and adding any estimated increases in costs of salary, benefits, etc. for those same personnel over and above the previous ear's costs. Estimated Transaction Count for Year X from Currently 125,000 Participating Cities • Includes all Cities participating as Principals or Subscribers in the previous year. • Transaction count is that used for purposes of estimating the cost allocations of these Participating Cities in Year X. Labor Cost Per Transaction ($350,000 -125,000) $2.80 Part 2: New Participant Labor Cost Increment New Participant Transaction Count 10,000 • Total Transactions assigned to the 2 new Participating Cities for purposes of budget allocation in Year X New Participant Labor Cost Increment for Year X ($2.80 x 10,000) $28,000 Labor Costs in Year X may be increased by Supermajority Vote to a level of $378, 000. Labor Costs in excess of that amount would require Supermajority Vote and unanimous approval by Board Members representing the Original Principals. v. 11.4.13 39 IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates set forth below. City of Bellevue City of Everett City Manager Mayor 1M-3>-& Date Date Approved as to Form: Approved as to Form: A�Attorney City Attorney Date Date The City of Seattle City of Tacoma Mayor City Manager Date Date Approved as to Fonn: Approved as to Form: City Attorney City Attorney Date Date v. 11.5.13 31 IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates set forth below. City of Bellevue City Manager Date Approved as to Form: City Attorney Date The City of Seattle Mayor Date Approved as to Form: City Attorney Date City of Everett Mayor 1 4., I -C11 4 Date Approved as to Form: ty Atto y Date City of Tacoma City Manager Date Approved as to Form: City Attorney Date v. t 1.5.13 31 IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates set forth below. City of Bellevue City Manager Date Approved as to Form: City Attorney Date The City of Seattle Mayor � Ir/ 74-V Date Approved as to Form: 0�.- 4� - - 7a#:City Attorney 2 -t-- �t z Date City of Everett Mayor Date Approved as to Form: City Attorney Date City of Tacoma City Manager Date Approved as to Form: City Attorney Date v. 11. 5.13 31 IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates set forth below. City of Bellevue City Manager Date Approved as to Form: City Attorney Date The City of Seattle Mayor Date Approved as to Form: City Attorney Date v. 11. 5.13 City of Everett Mayor Date Approved as to Form: City Attorney 171 7io/ S Date Approved as to Form: City Attorney �a-/3--/3 Date y o Date it c or of Finance Attest: ., la-a3a0 13 oris Sorum Date City Clerk AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: 2018 Property Insurance Renewal with American Home Assurance Company 7M Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: City Attorney's Office — Risk Management Presenter: Thelma Swem Phone: (360) 473-5302 SUMMARY: The Bremerton Municipal Code authorizes the Risk Management Specialist, with the approval of the City Attorney, to bind property insurance coverage on City assets and requires City Council approval for the continuation of the bound coverage. Property insurance coverage for 2018 has been bound with American Home Assurance Company. The 2018 annual premium including terrorism coverage and mandatory engineering fee is $338,806. Coverage is subject to a $100,000 deductible for most losses. Earthquake and flood insurance is only provided for the Wastewater Treatment Plant, the Harborside Conference Center, the Harborside Sculptures and Fountains and the PSNS Memorial Plaza. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): Sufficient funds have been budgeted in the Risk Management Fund for this expenditure for 2018. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve continuation of property insurance bound with American Home Assurance Company for 2018. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Claims Administration Agreement with Eberle Vivian, Inc. Self -Insured Worker's Compensation Claims 7N Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: City Attorney's Office — Risk Management Presenter: Thelma Swem Phone: (360) 473-5302 SUMMARY: The City contracts its self-insured worker's compensation claim administration with a third party self-insurance administrator to ensure compliance with all Labor & Industries rules. The City submitted a request for proposals to three Washington State self-insurance claims administration firms and received three responses. The proposals were evaluated and staff is recommending Eberle Vivian be selected to administer its worker's compensation claims beginning February 1, 2018. The proposed agreement is for an initial three-year term with an option for two two-year extensions. ATTACHMENTS: Proposed Claims Administration Agreement between the City of Bremerton and Eberle Vivian for self-insured worker's compensation claims administration FISCAL IMPACTS (Include Budgeted Amount): The annual contract amount is $28,950 and sufficient funds have been budgeted for 2018 in the Risk Management Fund. STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Claims Administration Agreement between the City of Bremerton and Eberle Vivian for self-insured worker's compensation claims administration; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION Form Updated 01/07/15 ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action EV/Client Contract Agreement Page 1 CLAIMS ADMINISTRATION AGREEMENT THIS AGREEMENT is made and entered into between EBERLE VIVIAN INCORPORATED, with its principal place of business at 206 Railroad Ave, N., Kent, Washington, 98032 (hereinafter referred to as "EV"), and the City of Bremerton with its principal place of business at 345 6th Street, Suite 100, Bremerton, Washington 98337 (hereinafter referred to as "the Client"). WITNESSETH WHEREAS, the Client maintains an insured plan to cover its Workers' Compensation liabilities in the State of Washington; and EV has agreed to perform certain services in connection therewith, as herein set forth: NOW, THEREFORE, it is agreed as follows: The initial term of this Agreement shall be for the period of three (3) years commencing February 1, 2018 and ending January 31, 2021. At the end of the initial term, this Agreement may, at the sole discretion of the Client, be renewed for up to two (2) terms of two (2) years each, with the same terms and conditions. Nonetheless, this Agreement may be terminated by either party at any time by giving not less than sixty (60) days written notice to the other party, and EV may terminate this Agreement on shorter notice in the circumstances described in Sections 3(c) and 5(e). 2. During the period of this Agreement, EV shall represent and act for the Client in matters pertaining to the actual or potential liability of the Client for claims based on injuries to the Client's employees which occur during the term of this Agreement that are or should be, in the Client's judgment, handled pursuant to the self-insured provisions of the Industrial Insurance Act of the State of Washington (the "Act"). More specifically, EV shall: a. Receive notice of and create files on each claim reported and maintain these files for the Client. b. Investigate all claims as required to determine their validity and compensability. c. Determine proper benefits due on compensable claims. EV/Client Contract Agreement Page 2 d. Make timely payment of benefits due, in accord with payment procedures as established from funds provided by the Client. The Client will be wholly responsible for providing such funds as may be required for these payments. Prepare documentation and defense of cases considered non -compensable and assist legal counsel selected by the Client in preparation of cases for hearing, appeals, and/or trial. e. Maintain and provide the Client pertinent data on all claim payments f. Provide monthly and/or quarterly computerized loss reports in a tailored format, as mutually agreed at inception of the program, showing descriptive data, details of each month's payments, total payments, reserves and total experience for each claim. g. Provide the Client's excess insurers such reports as they may reasonably require within specific excess coverage reporting requirement. h. Provide information and assistance as may be reasonably required for preparation and filing of all reports required by the Act and any other applicable law in connection with the Client's approved self-insured status. File with the appropriate State of Washington administrative agencies, including but not limited to the Department of Labor and Industries, such information as is required by the Act and any other applicable law with respect to each claim. j. Provide loss control services, defined as loss control, consultations and surveys as mutually agreed. k. Perform all services to be rendered pursuant to this Agreement in full compliance with the Act and all other applicable law. EV RMIS will electronically interface with the Centers for Medicare and Medicaid Services (CMS) to capture and report data in the format prescribed by the CMS Specifications. in. EV RMIS will report directly to CMS on behalf of Client as an Account Designee (reporting agent), as such term is defined in the CMS User Guide published on March 16, 2009 ("Account Designee"). n. If Client is the Responsible Reporting Entity ("RRE") as that term is defined in MMSEA Section 111 as set forth in 42 U.S.C. 1395Y, EV RMIS will assist client as follows: EV/Client Contract Agreement Page 3 i. EV RMIS will develop an electronic interface with CMS to forward the information needed to meet Client's MMSEA reporting obligations. ii. As the custodian of the original claims information from which the reports will be compiled, EV RMIS will be authorized Account Designee for Client. As an Account Designee, EV RMIS will prepare and submit test files to CMS in accordance with the applicable regulations and the requirements of the CMS Specifications. iii. EV RMIS will prepare the CMS Medicare beneficiary required data files and submit them to CMS or otherwise forward them as required by applicable regulations instructed by Client. iv. EV RMIS will establish and implement proper safeguards against unauthorized use and disclosure of the data exchanges for the purposes of complying with MMSEA. Proper safeguards shall include, but not be limited to, the adoption of policies and procedures to ensure that the data obtained shall be used solely in accordance with Section 1106 of the Social Security Act [42 U.S.C. 1306], Section 1874(b) of the Social Security Act [42 U.S.0 1395kk (b)], Section 1862(b) of the Social Security Act [42 U.S.0 13958y(b), and the Privacy Act of 1974, as amended [5 U.S.0 552a]. EV RMIS shall establish appropriate administrative, technical, procedures and physical safeguards to protect the confidentiality of the data to prevent unauthorized access to the data provided by CMS. Further EV RMIS agrees to grant an authorized representative of the Center for Medicare and Medicaid Services (CMS) and/or Client access to facilities where the Client's Medicare data is stored or kept for the purpose of inspecting security arrangements at a mutually agreeable date and time. The purpose of any such inspection will be to confirm that EV RMIS is in compliance with all applicable security requirements. Access to the records matched to any records created by the matching process shall be restricted to authorized CMS, EV RMIS and Client employees, agents and/or officials who require access to perform their official duties in accordance with the uses of the information as authorized under Section 111 of the MMSEA of 2007 and this Addendum, Such Personnel shall be advised of (1) the confidential nature of the information; (2) safeguards required to protect the information; and (3) the administrative, civil and criminal penalties for noncompliance contained in applicable Federal laws. EV/Client Contract Agreement Page 4 o. EV RMIS will be responsible for payment of any and all fines assessed to the Client in regards to compliance with the Medicare beneficiary reporting requirements of Medicare, Medicaid and SCHIP Extension Act of 2007 that relate to the negligent acts or omissions of EV RMIS except to the extent that: i. Such fines or penalties are the direct result of specific direction given by Client and/or its agent or the negligent actions or omissions of Client and /or its agent; ii. EV RMIS did not receive information from Client that is essential to the performance of the duties set forth herein in a timely manner so as to be able to comply with the terms of this Addendum; In consideration of the services to be performed by EV hereunder, the Client shall pay to EV: a. A service fee of $28,950 per year for all claims administration service performed within the contract period. The contract period will include the initial term of this Agreement and two (2) optional years, if exercised. Thereafter, the service fee will be subject to an annual increase equal to the Greater Seattle Area Consumer Price Index, plus two (2) percent. b. Such additional fee as mutually agreed by the parties for any services in addition to those described in Section 2 that are requested by the Client. c. Interest of 1.5% per month on invoices not paid within 30 days of client's receipt thereof. In the event invoices are not paid within sixty (60) days of client's receipt thereof, EV may terminate this Agreement, at its option, after ten (10) days written notice to the Client. 4. The Parties mutually agree that: a. Client will indemnify, defend and hold harmless EV, its officers, directors, employees, and agents, from all claims, losses, damages, costs, liability or expenses, including attorneys' fees, caused by or resulting from the negligence or willful misconduct of Client, its officers, directors, employees, insureds or agents, to the extent permitted by law. b. EV will indemnify, defend and hold harmless Client, its officers, directors, employees, and agents, from all claims, losses, damages, costs, liability or expenses, including attorney's fees caused by or resulting solely from the negligence or willful misconduct of EV, its directors, officers or agents, to the extent permitted by law, however the parties agree that EV, its directors, officers, agents or employees, will not be EV/Client Contract Agreement Page 5 liable to Client or any third party for claims arising from EV's performance under this Agreement in those cases where EV acted at the request of or with the consent of Client. c. Client agrees that it will not hold EV liable for, or reduce the compensation of EV with respect to any failure of EV to deliver any services resulting from any failure of cooperation on the part of Client or the prior administrator, or from any files for takeover claims which have not been properly maintained or are not delivered to EV in good order. d. This section of the Agreement shall survive the termination of the Agreement. 5. The Client agrees: a. To pay EV the fee provided for hereunder and any other fees agreed to by the Client. b. To pay all allocated loss expense, as hereinafter defined, in addition to the fees to be paid to EV Allocated loss expense is defined as reasonable attorneys' fees, court and/or hearing costs, costs of depositions, documents and exhibits, witness and expert fees, medical and engineering appraisal, surveillance, independent adjusting, photography and other incidental and special costs incurred to evaluate compensability of claims. c. To make funds available to EV to be used by EV to pay claims that the Client determines it should pay pursuant to the Act and allocated loss expense. d. To advise EV on a timely basis of all pertinent excess insurance reporting requirements and/or reporting modifications for all annual periods for which claim administration services are provided. e. That this Agreement is entered into with the assumption that existing Federal, State or other jurisdictional regulations will remain in effect for the duration of this Agreement. The Client agrees that should administrative or other costs of service provided hereunder be substantially increased as a result of modifications in existing law, enactment of new legislation, or promulgation of new administrative guidelines. The Client and EV agree to attempt to negotiate an adjustment to the service fees to equitably reflect the effect of such change. EV/Client Contract Agreement Page 6 If the parties cannot agree on a revised service fee, EV may terminate this Agreement, at its option, after thirty (30) days written notice to the Client. 6. The Parties acknowledge and agree that: a. Any and all information emanating from either party's business in any form, including compilations of otherwise public information, is confidential and proprietary in nature. Each party will use it best efforts during and after the termination of this Agreement to preclude the duplication, use or disclosure of any such confidential and proprietary information to any third party, unless such duplication or disclosure is specifically authorized under this agreement or otherwise by the party claiming ownership. In addition, the parties agree that information provided by EV's RMIS or otherwise in the context of this relationship shall be considered confidential and proprietary and may constitute privileged and/or attorney work product protected from discovery by law and/or rules of court. Therefore, neither party will release any such information unless: i. Compelled by an order of a court of competent jurisdiction; ii. Mandated by an insurance code, claim practices act, workers' compensation law, or other applicable law or regulation to provide information to the claimant or other person; iii. Mandated by applicable court discovery rules in the opinion of the claim professional responsible for the adjustment of the claim or defense counsel, if any. b. Any information sought to be produced will be prescreened by EV in consultation with Client, provided such discovery requests comply with applicable rules of court governing discovery litigation. c. If there is an obligation to release part but not all of the information, the part deemed not responsive will be withheld, but nothing in this Agreement is intended to abrogate the duty of either party to comply in good faith with such discovery requests. d. Each party agrees that the information contained within EV's RMIS must be treated in a confidential manner by all users who may gain authorized access to the RMIS. In the event of a third party suit alleging defamation, false light, or other invasion of privacy tort, violation of civil rights, violation of federal or state medical privacy statutes, or violation of fair employment practice laws, arising from either party's use of EV's RMIS under this agreement, the liable party agrees to indemnify and hold EV/Client Contract Agreement Page 7 harmless the other party for all sums due under the terms of a judgment or reasonable settlement, including interest and attorneys' fees, upon a final judgment or mutual agreement that one of the parties hereto is liable as charged in such allegations. e. EV shall hold the non-public personal information in strict confidence and access it only for explicit business purpose of this agreement. EV's Privacy and Confidentiality Policy, and as applicable, all state and federal laws related to privacy, including, but without limitation, Gramm -Leach - Bliley Act. Upon reasonable request, Client may audit EV's compliance with EV's Privacy and Confidential Policy as well as EV's compliance with state and federal laws related to confidentiality of non-public personal information. EV shall promptly notify Client in writing of any unauthorized use or disclosure of non-public personal information. EV shall endeavor to promptly notify Client of any unauthorized use or disclosure on non- public personal information and it will take immediate steps to remedy the situation and mitigate damage. f. This section of the Agreement shall survive the termination of the Agreement. 7. All claims and related files generated by EV as a result of its activity under this Agreement shall remain at all times the property of the Client with the exception of any supporting data required by EV to make such accountings to the Client or excess insurers as are required in this Agreement. EV will retain claim files for three (3) years following date of closure. Thereafter, files may be returned, at the Client's direction and expense, to the Client or forwarded to such location as may be designated for continued storage. Upon EV's request, closed claim files will be returned for additional administration as may be required. EV will electronically maintain any claim files created on or after the inception date of this contract. EV will maintain any files not scanned into our electronic database and return them to the client or its designee in the event of contract termination at the expense of the client. In the event of termination or non -renewal of EV's services, EV will, at the Client's request and expense, transfer all open and retained closed claim files to the Client or its designee, as of the effective date of termination. EV is retained by the Client only for the purposes and to the extent set forth in this Agreement, and its relationship to the Client shall be that of an independent contractor EV/Client Contract Agreement Page 8 9. The Client agrees that during the term of this Agreement and for a period of one (1) year following its termination, it will not employ any person employed by EV during the term of this Agreement without the prior written consent of EV 10. Any notice required or permitted to be given under this Agreement shall be sufficient if given in writing and sent by registered or certified mail to the Client or to EV at the addresses first set forth above or to any other address of which written notice of change is given. 11. The waiver by EV or the Client of the breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by either party or prevent either party thereafter enforcing any such provision. 12. This Agreement is for the term provided for in Section 1. Upon tennination of this Agreement, the Client shall have the option to: a. Assume all open claims pending for the terminated or non -renewal portion of the program as of the effective date of termination or non- renewal, provided, however, that EV shall be entitled to receive its full fee for all quarters beginning prior to the effective date of termination or non -renewal; or b. Upon agreement by both parties to a rate of compensation, require EV to continue administration, to conclusion, of all open claims associated with that portion of the program terminated or non -renewed. Such rate of compensation shall thereafter be reviewed by the parties on an annual basis and shall be the subject of mutual agreement between the parties. Adequate funds shall continue to be made available by the Client for the payment of claims and allocated loss expense until all claims are liquidated. c. In the event the Client requests EV to provide post -termination or non- renewal claims administration, upon agreement by both parties to a rate of compensation, the Client may continue to purchase computer data services. Such rate of compensation shall thereafter be reviewed by the parties on an annual basis and continued on-line services shall be the subject of mutual written agreement between the parties. 13. The obligation of EV to perform its duties hereunder is conditioned upon the Client's cooperation with EV with respect to the activities of EV including, but not limited to, responding to EV's requests for information promptly; providing excess carrier reporting requirements; meeting with EV and/or third parties, as may be needed; making decisions on matters which, in the professional opinion of EV, should be made by the Client; the provision of funds referred to in EV/Client Contract Agreement Page 9 Section 5; and performance by the Client of all other obligations of this Agreement. 14. This Agreement may not be assigned by either party without the prior written consent of the other party, which consent will not be unreasonably withheld. 15. Any unresolved dispute between the Client and EV that may arise from the obligations of either party as set forth herein, will be subject to non-binding mediation on the written request of either party. Such mediation shall not be binding upon the Client and EV, however the parties agree to negotiate in good faith to resolve disputes prior to commencing litigation. The parties shall attempt in good faith to select a single mediator within 15 days of the written request for mediation. If they are unable to select a single mediator within said period, then each party shall select a mediator. If the two mediators cannot agree on a third within fifteen (15) days, either party may request that selection be made by a judge of a court having competent jurisdiction. The laws of the State of Washington will apply. The parties shall each pay for one-half of any mediator's costs. In the event of mediation and/or litigation, each party shall pay its own attorney's fees and costs. 16. EV shall provide Certificates of Insurance to the City Attorney's Office verifying the following coverage: a. Professional liability providing coverage of One Million Dollars ($1,000,000) for errors and omissions committed by EV while performing its obligations under this Agreement. The policy shall remain in full force and effect, and provide coverage for the full term of this Agreement. Insurer shall provide the City Attorney with thirty (30) days' written notice of any cancellation or change of coverage of the policy. b. Cyber liability insurance covering liabilities for financial loss resulting or arising from acts, errors, or omissions, in rendering technology services in connection with the specific services described in this Agreement with a minimum limit of One Million Dollars ($1,000,000) per occurrence and in the aggregate. Coverage must be provided for privacy and security liability, privacy regulatory defense and payment of civil fines, payment of credit card provider penalties, and breach response costs (including without limitation, notification costs, forensics, credit protection services, call center services, identity theft protection services, and crisis management/public relations services). 17. This Agreement sets forth all of the terms, conditions, and agreements of the parties relative to the subject matter hereof and supersedes any and all such former agreements which are hereby declared terminated and of no further force and effect upon the execution and delivery hereof. There are no terms, conditions or agreements with respect thereto, except as herein provided and no amendment or modification of this Agreement shall be effective unless reduced EV/Client Contract Agreement Page 10 to writing and executed by the parties. All terms, conditions, and definitions as set forth in this Agreement will be interpreted under the laws of the State of Washington. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate counterparts as of this date written and the persons signing below warrant that they have the authority to execute this Agreement. EBERLE VIVIAN INCORPORATED CITY OF BREMERTON IIn Lisa Vivian President Patty Lent Mayor Date: Date: AGENDA BILL CITY OF BREMERTON CITY COUNCIL 70 SUBJECT: Intergovernmental Cooperative Study Session Date: December 13, 2017 Purchasing Agreement with the Public COUNCIL MEETING Date: December 20, 2017 Procurement Authority for Fire Department Department: Fire Purchases Presenter: David Schmitt, Fire Chief Phone: (360) 473-5381 SUMMARY: Intergovernmental Cooperative Purchasing Agreement between City and Public Procurement Authority allowing the City to purchase a fire hose, and possibly other equipment in the future, with pricing from a pre-bid Master Price Agreement. ATTACHMENTS: (1) Intergovernmental Cooperative Purchasing Agreement FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: 0 Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Intergovernmental Cooperative Purchasing Agreement between the City of Bremerton and Public Procurement Authority to purchase equipment with pricing from a pre-bid Master Price Agreement; 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 Intergovernmental Cooperative Purchasing Agreement This Intergovernmental Agreement (Agreement) is by and between the "Lead Contracting Agency" and participating government entities ("Participating Agencies"), that are members of National Purchasing Partners ("NPP"), including members of FireRescue GPO and Public Safety GPO, that agree to the terms and conditions of this Agreement. The Lead Contracting Agency and all Participating Agencies shall be considered as "parties" to this agreement. WHEREAS, upon completion of a formal competitive solicitation and selection process, the Lead Contracting Agency has entered into Master Price Agreements with one or more Vendors to provide goods and services, often based on national sales volume projections; WHEREAS, NPP provides group purchasing, marketing and administrative support for governmental entities. NPP's marketing and administrative services are free to its membership, which includes participating public entities and nonprofit institutions throughout North America. WHEREAS, NPP has instituted a cooperative purchasing program under which member Participating Agencies may reciprocally utilize competitively solicited Master Price Agreements awarded by the Lead Contracting Agency; WHEREAS, the Master Price Agreements provide that all qualified government members of NPP may purchase goods and services on the same terms, conditions and pricing as the Lead Contracting Agency, subject to applicable local and state laws of the Participating Agencies; WHEREAS, the parties agree to comply with the requirements of the Intergovernmental Cooperation Act as may be applicable to the local and state laws of the Participating Agencies; WHEREAS, the parties desire to conserve and leverage resources, and to improve the efficiency and economy of the procurement process while reducing solicitation and procurement costs; WHEREAS, the parties are authorized and eligible to contract with governmental bodies and Vendors to perform governmental functions and services, including the purchase of goods and services; and WHEREAS, the parties desire to contract with Vendors under the terms of the Master Price Agreements; NOW, THEREFORE, the parties agree as follows: ARTICLE 1: LEGAL AUTHORITY Each party represents and warrants that it is eligible to participate in this Agreement because it is a local government created and operated to provide one or more governmental functions and possesses adequate legal authority to enter into this Agreement. ARTICLE 2: APPLICABLE LAWS The procurement of goods and services subject to this Agreement shall be conducted in accordance with and subject to the relevant statutes, ordinances, rules, and regulations that govern each party's procurement policies. Competitive Solicitations are intended to meet the public contracting requirements of the Lead Contracting Agency and may not be appropriate under, or satisfy Participating Agencies' procurement laws. It is the responsibility of each party to ensure it has met all applicable solicitation and procurement requirements. Participating Agencies are urged to seek independent review by their legal counsel to ensure compliance with all local and state solicitation requirements. ARTICLE 3: USE OF BID, PROPOSAL OR PRICE AGREEMENT a. A "procuring party" is defined as the Lead Contracting Agency or any Participating Agency that desires to purchase from the Master Price Agreements awarded by the Lead Contracting Agency. b. Each procuring party shall be solely responsible for their own purchase of goods and services under this Agreement. A non -procuring party shall not be liable in any fashion for any violation of law or contract by a procuring party, and the procuring party shall hold non -procuring parties and all unrelated procuring parties harmless from any liability that may arise from action or inaction of the procuring party. c. The procuring party shall not use this agreement as a method for obtaining additional concessions or reduced prices for similar goods and services outside the scope of the Master Price Agreement. d. The exercise of any rights or remedies by the procuring party shall be the exclusive obligation of such procuring party. e. The cooperative use of bids, proposals or price agreements obtained by a party to this Agreement shall be in accordance with the terms and conditions of the bid, proposal or price agreement, except as modified where otherwise allowed or required by applicable law, and does not relieve the party of its other solicitation requirements under state law or local policies. ARTICLE 4: PAYMENT OBLIGATIONS The procuring party will make timely payments to Vendors for goods and services received in accordance with the terms and conditions of the procurement. Payment for goods and services, inspections and acceptance of goods and services ordered by the procuring party shall be the exclusive obligation of such procuring party. Disputes between procuring party and Vendor shall be resolved in accordance with the law and venue rules of the state of the procuring party. ARTICLE 5: COMMENCEMENT DATE This Agreement shall take effect after execution of the "Lead Contracting Agency Endorsement and Authorization" or "Participating Agency Endorsement and Authorization," as applicable. ARTICLE 6: TERMINATION OF AGREEMENT This Agreement shall remain in effect until terminated by a party giving 30 days written notice to "Lead Contracting Agency" ARTICLE 7: ENTIRE AGREEMENT This Agreement and any attachments, as provided herein, constitute the complete Agreement between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters herein. ARTICLE 8: CHANGES AND AMENDMENTS This Agreement may be amended only by a written amendment executed by all parties, except that any alterations, additions, or deletions of this Agreement which are required by changes in Federal and State law or regulations are automatically incorporated into this Agreement without written amendment hereto and shall become effective on the date designated by such law or regulation. ARTICLE 9: SEVERABILITY All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. THIS INSTRUMENT HAS BEEN EXECUTED IN TWO OR MORE ORIGINALS BY EXECUTION AND ATTACHMENT OF "THE LEAD CONTRACTING AGENCY ENDORSEMENT AND AUTHORIZATION" OR "PARTICIPATING AGENCY ENDORSEMENT AND AUTHORIZATION," AS APPLICABLE. ONCE EXECUTED, IT IS THE RESPONSIBILITY OF EACH PARTY TO FILE THIS AGREEMENT WITH THE PROPER AGENCY IF REQUIRED BY LOCAL OR STATE LAW. PUBLIC PROCUREMENT AUTHORITY ENDORSEMENT AND AUTHORIZATION The undersigned acknowledges, on behalf of the Public Procurement Authority ("Lead Contracting Agency") that he/she has read and agrees to the general terms and conditions set forth in the enclosed Intergovernmental Cooperative Purchasing Agreement regulating use of the Master Price Agreements and purchase of goods and services that from time to time are made available by the Public Procurement Authority to Participating Agencies locally, regionally, and nationally through NPP. Copies of Master Price Agreements and any amendments thereto made available by the Public Procurement Authority will be provided to Participating Agencies and NPP to facilitate use by Participating Agencies. The undersigned understands that the purchase of goods and services under the provisions of the Intergovernmental Cooperative Purchasing Agreement is at the absolute discretion of the Participating Agencies. The undersigned affirms that he/she is an agent of the Public Procurement Authority and is duly authorized to sign this Public Procurement Authority Endorsement and Authorization. Date: a- +3 - 2a l i/ BY: Jeffrey D. Johnson TTS: Administrator/Board Member Public Procurement Authority Contact Information: Contact Person: Heidi Chames Address: 25030 SW Parkway Ave., Suite 330 Wilsonville, OR 97070 Telephone No.: 855-524-4572 Email: questions@procurementauthority.org PARTICIPATING AGENCY ENDORSEMENT AND AUTHORIZATION The undersigned acknowledges, on behalf of ("Participating Agency") that he/she has read and agrees to the general terms and conditions set forth in the enclosed Intergovernmental Cooperative Purchasing Agreement regulating use of the Master Price Agreements and purchase of goods and services that from time to time are made available by the Lead Contracting Agency to Participating Agencies locally, regionally, and nationally through NPP. The undersigned further acknowledges that the purchase of goods and services under the provisions of the Intergovernmental Cooperative Purchasing Agreement is at the absolute discretion of the Participating Agency and that neither the Lead Contracting Agency nor NPP shall be held liable for any costs or damages incurred by or as a result of the actions of the Vendor or any other Participating Agency. Upon award of contract, the Vendor shall deal directly with the Participating Agency concerning the placement of orders, disputes, invoicing and payment. The undersigned affirms that he/she is an agent of and is duly authorized to sign this Participating Agency Endorsement and Authorization. Date: BY: ITS: Participating Agency Contact Information: Contact Person: Address: Telephone No.: AGENDA BILL CITY OF BREMERTON CITY COUNCIL 7P SUBJECT: Purchase of replacement Study Session Date: December 13, 2017 Fire Hose for the Fire Department from COUNCIL MEETING Date: December 20, 2017 Curtis of Kent, WA Department: Fire Presenter: David Schmitt, Fire Chief Phone: (360) 473-5380 SUMMARY: The Fire Department is going to replace all of their fire hose; the current fire hose is at the end of its useful lifecycle. There have been recent incidents where the fire hose has failed for a number of reasons. The current fire hose has been in operation since 2004. The fire hose is on the FRGPO under contract number 00000170. The cost total for three hundred and thirty (330) pieces of fire hose is $68,695.02 which includes taxes. ATTACHMENTS: Quotation from Curtis Tool FISCAL IMPACTS (Include Budgeted Amount): This is budgeted through the Public Safety Bond. The total cost for the purchase of three hundred and thirty (330) pieces of fire hose is $68,695.02 (includes tax). STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of three hundred and thirty (330) pieces of fire hose from Curtis of Kent, WA for $68,695.02, including tax, as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action Ph: 206-622-2875 TF: 800-426-6633 Fax: 253-236-2997 nwsales(a2lncurtis.com DUNS#: 00-922-4163 CmUF;ZTIS TOOLS FOR HEROES ISSUED DATE 10/19/2017 Northwest Division 6507 S. 208th St. Kent, WA. 98032 www.LNCURTIS.com Quotation No. 72152 Quotation EXPIRATION DATE 12/18/2017 CUSTOMER SERVICE REP Kenneth Walch kwalch(a)lncurtis.com 206-596-7902 OFFER CLASS GPO -FR NOTES & DISCLAIMERS THANKYOU FOR THIS OPPORTUNITY TO QUOTE. WE ARE PLEASED TO OFFER REQUESTED ITEMS AS FOLLOWS. IF YOU HAVE ANY QUESTIONS, NEED ADDITIONAL INFORMATION, OR WOULD LIKE TO PLACE AN ORDER, PLEASE CONTACT YOUR SALESPERSON OR CUSTOMER SERVICE REP AS NOTED ABOVE. TRANSPORTATION IS INCLUDED IN BELOW PRICING. THE FOLLOWING OFFER IS PER LN CURTIS & SONS FRGPO Contract #00000170 EXTENDED TO BREMERTON FIRE DEPT. - FR -GPO MEMBER #M-5691185 LN QTY 1 117 2 107 UNIT PART NUMBER DESCRIPTION EA 8D17X50R15N AAH 1.75X50' CPLD 1.5NH RED 400# DJ HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 001-117" EA 8D25X50Y25N AAH 2.5X50' CPLD 2.5NH YEL 400# DJ POLY HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 001-107" Page 1 of 2 UNIT PRICE TOTAL PRICE $96.75 $11,319.75 $132.00 $14,124.00 QUOTATION NO. CUSTOMER: SHIPTO: 72152 Bremerton City Fire Bremerton City Fire Department Department 911 Park 911 Park Bremerton WA 98337 Bremerton WA 98337 SALESPERSON Chris Mackey cmackeX@Incurtis.com 206-915-7397 REQUISITION NO. REQUESTING PARTY CUSTOMER NO. TERMS CHIEF PAT C32576 Net 30 MCGANNEY F.O.B. SHIP VIA REQ. DELIVERY DATE DEST Best Way ISSUED DATE 10/19/2017 Northwest Division 6507 S. 208th St. Kent, WA. 98032 www.LNCURTIS.com Quotation No. 72152 Quotation EXPIRATION DATE 12/18/2017 CUSTOMER SERVICE REP Kenneth Walch kwalch(a)lncurtis.com 206-596-7902 OFFER CLASS GPO -FR NOTES & DISCLAIMERS THANKYOU FOR THIS OPPORTUNITY TO QUOTE. WE ARE PLEASED TO OFFER REQUESTED ITEMS AS FOLLOWS. IF YOU HAVE ANY QUESTIONS, NEED ADDITIONAL INFORMATION, OR WOULD LIKE TO PLACE AN ORDER, PLEASE CONTACT YOUR SALESPERSON OR CUSTOMER SERVICE REP AS NOTED ABOVE. TRANSPORTATION IS INCLUDED IN BELOW PRICING. THE FOLLOWING OFFER IS PER LN CURTIS & SONS FRGPO Contract #00000170 EXTENDED TO BREMERTON FIRE DEPT. - FR -GPO MEMBER #M-5691185 LN QTY 1 117 2 107 UNIT PART NUMBER DESCRIPTION EA 8D17X50R15N AAH 1.75X50' CPLD 1.5NH RED 400# DJ HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 001-117" EA 8D25X50Y25N AAH 2.5X50' CPLD 2.5NH YEL 400# DJ POLY HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 001-107" Page 1 of 2 UNIT PRICE TOTAL PRICE $96.75 $11,319.75 $132.00 $14,124.00 Ph: 206-622-2875 Northwest Division TF: 800-426-6633 6507 S. 208th St. Fax: 253-236-2997 Kent, WA. 98032 nwsales anlncurtis.com www.LNCURTIS.com DUNS#: 00-922-4163 TOOLS FOR HEROES Quotation No. 72152 LN QTY UNIT PART NUMBER DESCRIPTION UNIT PRICE TOTAL PRICE 3 14 EA 8D30X25Y25N AAH 3X25' CPLD 2.5NH YELLOW 8D DJ POLY $147.75 $2,068.50 HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 200-214" 4 60 EA HFX50X100Y50S 5X100' CPLD 5STZYELLOW HFX NITRILE $521.75 $31,305.00 AAH RUBBER HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 001-060" 5 14 EA HFX50X25Y50S 5X25' CPLD 5STZYELLOW HFX NITRILE $204.55 $2,863.70 AAH RUBBER HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 061-074" 6 10 EA 8D17X8R15N AAH 1.75X8' CPLD 1.5NH RED 400# DJ POLY $66.00 $660.00 HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 118-128" 7 8 EA 8D25X8Y25N AAH 2.5X8' CPLD 2.5NH YELLOW 8D DJ POLY $85.25 $682.00 HOSE STENCILED 3 FT. FROM FEMALE COUPLING TO READ: "BFD 2018 108-1116" DUNS NUMBER: 009224163 SIC CODE: 5099 FEDERAL TAX ID: 94-1214350 THIS PRICING REMAINS FIRM UNTIL 12/18/2017. CONTACT US FOR UPDATED PRICING AFTER THIS DATE. Subtotal $63,022.95 Tax Total $5,672.07 Transportation $0.00 Total $68,695.02 Page 2 of 2 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Change Order No. 4 with Johansen Excavating, Inc. for the Lebo Boulevard Roadway Improvement Project; and Budget Adjustment for Project Closeout 7Q Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: Presenter: PW&U Rick Zimburean Phone: 360-473-5334 SUMMARY: The attached spreadsheets detail the Lebo project budget, current expenses, and anticipated final amounts. We anticipate this revised project budget will exceed the current $6,581,150 budget by $411,851 (6.3%), with Council's approval of Change Order 4 (attached). The added project expense detailed in Change Order 4 is due primarily to increased material quantities which were either incorrectly calculated by the project design team, or became necessary due to conditions encountered in the field. Please note we expect the Transportation Improvement Board will provide additional funding to defray a significant amount of this additional expense; however, the additional TIB commitment has not yet been finalized. ATTACHMENTS: 1. Change Order No. 4 2. Lebo Boulevard Roadway Improvement Project Financial Summary Spreadsheet 3. Lebo Boulevard Roadway Improvement Project Financial Detail FISCAL IMPACTS (Include Budgeted Amount): The Lebo Boulevard Road Improvement Project budget is $6,581,150 and is funded from the Transportation Improvement Board, the City's Stormwater Utility, and the City's Water Utility. This action will increase the project budget to $6,993,001 and increase/decrease the funding elements of the original project revenue budget plan as follows: TIB Grant: increase $532,007; Stormwater Capital Fund: decrease $252,675; Sewer Capital Fund: add $87,202; Water Capital Fund: increase $45,318. Please note the Transportation Improvement Board Executive Director has not yet committed to the grant increase. If TIB participation is less than projected, the difference is proposed to be provided from the City's Stormwater Capital Fund. STUDY SESSION AGENDA: ❑ No Presentation 0 Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Change Order No. 4 for the Lebo Boulevard Roadway Improvement Project; increase the Project Budget to $6,993,001; authorize the Mayor to finalize and execute Change Order No. 4; and authorize the Mayor to finalize and execute subsequent change orders necessary to close out the project, within the revised project budget, with substantially the same terms and conditions as presented. COUNCIL ACTION Form Updated 01/07/15 ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action CITY OF BREMERTON CHANGE ORDER CONTRACT CHANGE ORDER NO: 4 PROJECT NAME: LEBO COMMUNITY BOULEVARD RECONSTRUCTION PROJECT NO: CONTRACTOR: JOHANSEN EXCAVATING INC. ORIGINAL CONTRACT AMOUNT: $4,934,570.06 DAYS: 90 PREVIOUSLY APPROVED CHANGES: Change Order 01: Change Order 02: Change Order 03: Total: THIS CHANGE: REVISED CONTRACT AMOUNT: $166,937.34 DAYS: 4 $166,921.57 DAYS: 30 $18,204.16 DAYS: 0 $352,063.07 DAYS: 34 $537,100.31 DAYS: 0 $5,823,733.44 DAYS: 124 This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order Items. The increase or decrease in contract price shown below includes any applicable taxes. DESCRIPTION OF CHANGES INCREASE IN (DECREASE) IN CONTRACT CONTRACT AMOUNT AMOUNT ($) a> 0 ($) 0 Year End Change Order— Reconcile all totals to date. Please see the attached documents for description and details $537,100.31 $537,100.31 NET CHANGE IN CONTRACT AMOUNT INCREASE OR (DECREASE) ESTIMATED SALES TAX AT 9.0% (N/A) $0.00 TOTAL INCLUDING SALES TAX $537,100.31 Contractor acknowledges and accepts that this Change Order constitutes final settlement of all claims of any kind or nature arising from or connected with any work either covered or affected by this Change Order, including, without limitation, claims related to contract time, on-site or home office overhead, or lost profits. Nothing in this Change Order shall limit the City's right to bring a claim for past performance. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item, including any and all supervision costs and other miscellaneous CONTRACT CHANGE ORDER NO: 4 PROJECT NAME: LEBO COMMUNITY BOULEVARD RECONSTRUCTION costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work due to said Change Order. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that this Change Order shall be effective when approved by the City of Bremerton. The parties whose names appear below warrant that they are authorized to enter into a change order that is binding on the parties of this contract. In addition, Contractor warrants that it has or will inform the surety of this change, and shall take appropriate action to modify any bonds required under the contract to address this change. CONTRACTOR Accepted: DATE: It tO I-' PROJECT MANA Council action is required as project cost will exceed approved budget. Yes ❑ No Council action is required as change exceeds Mayors authority per BMC 2.76.110.1 Yes ❑ No DIRECTOR Recommended: Council roved: PUBLIC WORKS AND UTILITIES APPROVED AS TO FORM: Bremerton City Attorney Page 2 of 2 ATTEST: City Clerk DATE: / L -.Zp-1"7 DATE: 1700[0 DATE: Change Order a04 SUMMARY - See Attached Schedule Details PUBLIC WORKS CHANGE ORDER #04 Protect Name: Lebo Community Boulevard Contractor. Johansen Excavating, Inc. CONTRACT AMOUNT I TOTAL $4.934.570.06 $0. $4.934.570.06 CONTRACTAMOUNT PIET CHANGE I SUBTOTAL TOTAL ORIGINAL CONTRACTAMOUNT TAX TOTAL TOTAL PROJECT MANAGER $4.934.570.06 $0.00 $4.934.570.06 PAbJECTTOTAL CONTRACTED AMOUNT NET GRANDE AdditionN TAX {rwi Toil TAX (rJo) CONTRACT MOUNT THIS C�Ht�E ORDER $5,288,633.13 5537.100,31 $0.00 $0.00$5,823,73344 DAYS: 124 DAYS ADJUSTED: 0 DAYS: 124 Ali work, malerials and measurements to be in accordance with the provisions of the original contract and/or the standard spedf cations and special provisions for the We of construction involved The payments and/or additional time specified and agreed to in this order include every claim by the Contractor for any extra payment or extension of time with respect to the work described herein, including delays to the overall project. S ATURE: DATE: PROJECT MANAGER CONTRACTOR CITY APPROVAL CITY COUNCIL APPROVAL DATE: 12!1912017 Page 1 Chlnp Orgere04 MPUBLIC WORKS Parametrix CHANGE ORDER• SCHEDULE 1MWN(1P4NG PLANNING [W*0N41fNTA45�{(NCFs CHANGE ORDER 004 Da Cordmctor Johmen E10 aveft, Bic. ce,+unNo TI8•e.rta�ta:e}1 DESCMPMN OF CHANGE You am hervW rumiaged to with the foil from the eoramd Plans andRcelfoas: Such work wdl be r r peroated by: d9edr one or more of the following as applicable (X ) hlcraase or (X( Decrease in bid Items; ()Q Force Aecourd; 01d UM DescKshon 3 Bid Item 3: REMOVING CEMENT CONC. SIDEWALK was REDUCED from 5790 Sy 10 5015.66 Sy for a total deduction of (57,549.62). 4 Bid Item 4 REMOVING CEMENT CONC. CURB AND GUTTER was INCREASED horn 9660 LF to 10927 LF for a total INCREASE of $8,056.00. 5 Bid Item 5 REMOVING DRAINAGE STRUCTURE was REDUCED from 49 EACH to 42 EACH for a total DEDUCTION of (53,395.00). 7 Bid Item 7 ROADWAY EXCAVATION INCL HAUL was INCREASED from 3220 C.Y. to 5102.11 C -Y. for a total INCREASE of $72,48114 a Bid Item 0 SELECT BORROW INCL HAUL was INCREASED from 76M TON to 6922.31 TON for a total INCREASE of $29,751.80. 10 Bid Item 10 CATCH BASIN TYPE 1L was INCREASED from 9 EACH to 14 EACH for a total INCREASE of $8,900A0. 11 Bid Rem 11 CATCH BASIN TYPE 1 was INCREASED from 53 EACH to 55 EACH fare fotal INCREASE of S2,11 .00. 1eben 18 SCH, A STORM SEWER PIPE 12 IN. DIAM. was INCREASED from 2920 LF. to 2983.5 LF. for a total INCREASE of 52,167.17. 17 d Item 17 SCH. A STORM SEWER PIPE 18 IN. DIAM. was INCREASED from 1110 LF. to 1209 LF. for a total INCREASE of 56,940.00. to Bid Item 18 SCH. A STORM SEWER PIPE 24 IN. DIAM. was REDUCED from 290 LF. to 215 LF. for a total DEDUCTION of (57,600.00). 12 d Item 19 SHORING OR EXTRA EXCAVATION CL B was INCREASED from 3500 S F. to 7509.48 S.F. for a total INCREASE of $12,629.M. 20 Bid Nem 20 UNDERDRAIN PIPE 6 IN. DIAM, was INCREASED from 1180 LF. to 1303 LF. for a total INCREASE of 55,71950. 26 Bid Item 26 STRUCTURAL EARTH WALL was INCREASED ham 2900 SF to 4471.5 SF for a total INCREASE of 554,868.21. 27 Bid Nem 27 CRUSHED SURFACING BASE COURSE was INCREASED from 7690 TON to 13834.40 TON for a total INCREASE of SiM,971.86 29 Bid Nem 28 HMA CL 112 IN. PG 58-22 was INCREASED from 5220 TON to 5279.75 TON for a total INCREASE of $4,869.83. 29 Bid Item 29 JOB MIX COMPLIANCE PRICE ADJUSTMENT was REDUCED from i EST. to 0 EST. for a total DEDUCTION of (52,000.00). 30 Bid hem 30 COMPACTION PRICE ADJUSTMENT was REDUCED from 1 EST. to 0 EST. for a total DEDUCTION of ($1.00) 31 Bld Item 31 ASPHALT COST PRICE ADJUSTMENTwas INCREASED from Estimated Total of $355.00 to a total of $6,574.81 for a total INCREASE o1 Se 21g.e1. 35 Bid Item 35 CEMENT CONIC. PEDESTRIAN CURB was INCREASED from 200 LF. to 340 LF. for a total INCREASE of $4,060.00. 36 Bld Item 36 CEMENT CONC. TRAFFIC CURB AND GUTTER was INCREASED from 113SO LF, to 11894 LF, for a total INCREASE of 510,338.00, 37 Bid Item 37 BEAM GUARDRAIL TYPE 31 was REDUCED from 140 LF. to 8125 LF. for a total DEDUCTION of ($3,113.75) M Bid Item 38 PLASTIC LINE was INCREASED from 7470 LF. to 12104 LF. fora total INCREASE of $7A14AO. 39 Bid hem 39 PLASTIC WIDE LANE UNE was INCREASED from 5440 LF. to 5867 LF. for a total INCREASE of $910.05 40 Bid Rem 40 PLASTIC CROSSWALK UNE was DECREASED from 2250 S.F. to 1890 S.F. for a total DEDUCTION at (S1,92E.00j. 41 Bid Rem 41 PLASTIC STOP UNE was DECREASED from 158 LF. to 156 LF. for a total DEDUCTION of ($14 00). 47 Bid hem 43 PLASTIC BICYCLE LANE SYMBOL was DECREASED from 19 EACH to 18 EACH for a total DEDUCTION of (5107.00), uBid hem 44 PLASTIC TRAFFIC LETTER was INCREASED from 13 EACH to 75 EACH for a total INCREASE of $4,309.00. 46Rem 46 TEMPORARY PAVEMENT MARKING -SHORT DURATION was REDUCED from 16000 LF. to 3300 LF. for a total DEDUCTION of (5635.00). 47 d Rem 47 TRAFFIC CONTROL SUPERVISOR was REDUCED from 1 EST, to 0.990084 EST. for a total DEDUCTION of (524.79). 46 d Rem 48 PEDESTRIAN TRAFFIC CONTROL was REDUCED from i EST. to 0 EST. for a total DEDUCTION of (52.500.00). 49 Ram 49 FLAGGERS was INCREASED from an Estimated Total of S2,OOD to a Total of $8.142.46 for a total INCREASE of 56,12A8. so Rem 50 OTHER TRAFFIC CONTROL LABOR was REDUCED from 1 EST. to 0 EST, for a total DEDUCTION of (S2,00o.00j 53 Item 53 GRAVEL BACKFILL FOR DRAIN (1.6) was INCREASED from 205 C.Y. to 444.69 C.Y. for a total INCREASE of S17AM4S. 54 Item 54 ABANDON PIPE was INCREASED from 35 EACH to 39 EACH for a total INCREASE of $2,050.00. 55 item 55 CEMENT CONC. SIDEWALK was REDUCED from 9390 S.Y. to 6948.2 S.Y. for a total DEDUCTION of (520,322.80), 5s d hem 58 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 2 was REDUCED from 1390 S.Y. to 1340.94 S.Y. for a total DEDUCTION of (53.679-50). 12l1a@017 Pone t char" Goer 404 s7 Bid Nem S7 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 3 was INCREASED from 990 S.Y. to 1874.18 S.Y. for a total INCREASE of 588413.50. 58 Bid Item 58 CEMENT CONC. CURB RAMP was REDUCED from 59 EACH to 54 EACH 1w a total DEDUCTION of ($9,500.00). s9 Bid Nem 59 REPLACE AND ADJUST VALVE BOX was INCREASED from 61 EACH to 67 EACH for a total INCREASE of SUIN11.00. at Bid Item 61 REIMBURSEMENT FOR THIRD PARTY DAMAGE was REDUCED from 1 EST, to 0.076202 EST. for a total DEDUCTION of (54,608.99). a2 Bid Nem 62 ADJUST MANHOLE was INCREASED from 34 EACH to 35 EACH for a Iota! INCREASE of 8510.00. 95 Bid Item 65 MAILBOX SUPPORT TYPE 1 was REDUCED from S EACH to 0 EACH for a total DEDUCTION of (58.750.00). as Old Nem 66 CONNECTION TO DRAINAGE STRUCTURE was INCREASED from 9 EACH to 24 EACH for a total INCREASE of 540,500.00. sa 0 d Nem 68 LICENSED SURVEYING was INCREASED from 1 EST, to 1.03441967 EST. for a total INCREASE of $616.30. 71 d Item 71 COATED CHAIN LINK FENCE TYPE 4 was INCREASED from 800 LF. to 943 LF. for a total INCREASE of 1tx931.S0. 72 d Item 72 COATED ENO, GATE, CORNER, PULLPOST FOR CHAIN LINK FENCE was REDUCED from 82 EACH to 60 EACH for a total DEDUCTION of (99,024.00). 73 d Item 73 TOPSOIL TYPE A was INCREASED from 250 CY to 845 CY for a total INCREASE of 531,237.50. 7a Nem 74 6' CONCRETE MOW STRIP was INCREASED from 271 LF. to 420 LF. for a total INCREASE of 50,263.75. 76 Did Nem 76 BARK OR WOOD CHIP MULCH was INCREASED from 143 S.Y. to 2240.59668 S.Y. for a total INCREASE of $11,431.90. 77 Sidhem?7PSI A M'ROCKY Mr suballhiled with grandfloraAulurm 154111iancdaper. was WREASED from I I H to 14 EACH for a total INCREASE of 61458.00. 7s1110 m 79 1 I CULATA 'IVORY ILK' sutrst kMr g Acer griseu m 2'eadipar. was OEC99U 110 hiarn 14 to 11 EACH for a total DEDUCTION of St 50. so Bid Nem 80 PSIPE ARBUTUS UNEDO'ELFiN KING' was DECREASED from 23 EACH to 22 EACH for a total DEDUCTION of (588.70). 111 Bid Item 81 PSIPE HEMEROCALUS X'STELLA DE ORO' was INCREASED from 12 EACH to 32 EACH for a total INCREASE of $243.00. e2 Old Item 82 PSIPE NANDINA DOMESTICA'FIRE POWER' was INCREASED from 49 EACH to 58 EACH for a total INCREASE of $328.05. a3 Old Item 83 PSIPE POTENTILLA FRUTICOSA'ASBOTSWOOD' was DECREASED from 190 EACH to 184 EACH for a total DEDUCTION of (5218.70). e4 Bid Item 84 PSIPE RHUS AROMATiCA'GRO•LOW' was DECREASED hum 156 EACH to ISS EACH for a total DEDUCTION of (522.00). as d Item 88 PSIPE COTONEASTER APICULATUS'TOM THUMB' was DECREASED from 129 EACH to 128 EACH fora lataf DEDUCTION of ($17.90). as Item 88 BENCHES was INCREASED from 3 EACH to 4 EACH for a total INCREASE of 52,100.00. 93 Nem 93 WHITE REFLECTIVE PAINT was INCREASED from 84 LF. to 252 LF. for a total INCREASE of $1,673.20 94 Nem 94 MINOR CHANGE was INCREASED from 593.993.36 to $124,039.87 for a total INCREASE of 530,048.61.. so Bid Nem 96 FORCE ACCOUNT - POTHOLING was INCREASED from and Estimated Total of $42,091.39 to $44,734.39 for a total INCREASE of $2,643.00. 97 Bid Item 97 Structure Excavalfon pass A Ind. Haul was REDUCED from 300 CY to 268.61 CY for a Total DEDUCTION of (S1.037.44). sa Bid Nem 98 Gravel Borrow for SuWural Earth Wan Ind. Haul (1.67) was REDUCED from 950 CY to 603.10 CY for a total DEDUCTION of (S12.607.47). 99 Bid item 99 Construction GeotexWe for Underground Drains was INCREASED from 100 SY to 212.67 SY for a total INCREASE of $929 63. tot Old Nem 101 Compost was REDUCED from 18 CY to 7 CY for a total DEDUCTION of (5831.60), 94x4 Old Item 94N Repaint Bridge Suppod Columns was added to the cw th clef a LUMP SUM total of 57,500.82. 'PAW20t1 Pop m N r - O m 00 m 00 N O O V4 O v tD O N m n m d' o O m tD m CF o m rI m o O O O H rV N O O m w q* O m m r - O O -iae-I N tD ct k6 r\ 00 M I O m M e -I O1' m' r1 --e tD 00 O V1 O .moi ~ Ln O O1 N LL r -I 00 N Lf1 a-1 tp Lr) 00 N 00 m N C4 00 v -q0 -c* 0 0 .r -I n0 L N N Lr1 01 01 N tD cl� Lr! 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O L E U N- M C' h C m N U @ N O @ O o 1 O Z O �>¢ U= }" C @� C 7 O l ll y W ¢ S w:=—^^ d d c cIn o v3 c d @ d b cw c Y .o UpUU' U J U Z x o W p ._ U '�. % KU @R.D E OF p cW W iz Lu a it O:G ro @mdo QS d a > c @ w._ @ o J EU xw0 US �c(m or al o D m¢ c o ZU ��eoQ�—� O m O>> O@ E N o E LL c c U d c k¢ u' U '� p- 2 W d' J 0 N 2 �' > 2@ c ao o H E �>O. ._ m x-000>? tp JD �G O Uw> > L @@ UJJ L O@ GANFetf m@ W OIYULLO_LLTo N O O O O O O C co L) O U. D W LL. U'JZp -R.U gi NNW Li W rn rn oQi rn a`oi rn m w m o 0 Change Order #04 PUBLIC WORKS CHANGE ORDER - SCHEDULE A CHANGE ORDER #04 Contractor. Johansen Excavating, Inc. DESCRIPTION OF CHANGE Parametrix ENGINEERING PLANNING ENVIRONMENTAL SCIENCES Date Contract No TIB: 6-2-152(026)-1 Such work will be compensated by check one or more of the following as applicable [X] Increase or [X] Decrease in bid items; [X] Force Account Bid Item Description 3 Bid item 3: REMOVING CEMENT CONC. SIDEWALK was REDUCED from 5790 SY to 5015.68 SY for a total deduction of k$7.549 62)- 4 Bid Item 4 REMOVING CEMENT CONC. CURB AND GUTTER was INCREASED from 9550 LF to 10927 LF for a total INCREASE of $6,058.80. 5 Bid Item 5 REMOVING DRAINAGE STRUCTURE was REDUCED from 49 EACH to 42 EACH for a total DEDUCTION of ($3,395.00). 7 Bid Item 7 ROADWAY EXCAVATION INCL. HAUL was INCREASED from 3220 C.V. to 5102.11 C.Y. for a total INCREASE of $72,461.24. 8 Bid Item 8 SELECT BORROW INCL. HAUL was INCREASED from 7600 TON to 8922.31 TON for a total INCREASE of $29,751.98. 10 Bid Item 10 CATCH BASIN TYPE 1 L was INCREASED from 9 EACH to 14 EACH for a total INCREASE of $6,900.00. 11 Bid Item 11 CATCH BASIN TYPE 1 was INCREASED from 53 EACH to 55 EACH for a total INCREASE of $2,720.00. 16 Bid Item 16 SCH. A STORM SEWER PIPE 12 IN. DIAM. was INCREASED from 2920 L.F. to 2963.5 L.F. for a total INCREASE of $2,167.17. 17 Bid Item 17 SCH. A STORM SEWER PIPE 18 IN. DIAM. was INCREASED from 1110 L.F. to 1209 L.F. for a total INCREASE of $5,940.00. 16 Bid Item 18 SCH. A STORM SEWER PIPE 24 IN. DIAM. was REDUCED from 290 L.F. to 215 L.F. for a total DEDUCTION of ($7,800.00). 19 Bid Item 19 SHORING OR EXTRA EXCAVATION CL. B was INCREASED from 3500 S.F. to 7509.48 S.F. for a total INCREASE of $12,629.86. 20 Bid Item 20 UNDERDRAIN PIPE 6 IN. DIAM. was INCREASED from 1180 L.F. to 1303 L.F. for a total INCREASE of $5,719.50. 26 Bid Item 26 STRUCTURAL EARTH WALL was INCREASED from 2900 SF to 4471.5 SF for a total INCREASE of $54,908.21. 27 Bid Item 27 CRUSHED SURFACING BASE COURSE was INCREASED from 7690 TON to 13834.40 TON for a total INCREASE of $168,971.00 28 Bid Item 28 HMA CL. 112 IN, PG 58-22 was INCREASED from 5220 TON to 5279.75 TON for a total INCREASE of $4,869.63- 29 Bid Item 29 JOB MIX COMPLIANCE PRICE ADJUSTMENT was REDUCED from 1 EST. to 0 EST. for a total DEDUCTION of ($2,000.00). 30 Bid Item 30 COMPACTION PRICE ADJUSTMENT was REDUCED from 1 EST. to 0 EST for a total DEDUCTION of ($1.00) 31 Bid Item 31 ASPHALT COST PRICE ADJUSTMENT was INCREASED from Estimated Total of $355.00 to a total of $6,574.81 for a total INCREASE of $6,219.81. 35 Bid Item 35 CEMENT CONC. PEDESTRIAN CURB was INCREASED from 200 L.F. to 340 L.F. for a total INCREASE of $4,060.00. 36 Bid Item 36 CEMENT CONC. TRAFFIC CURB AND GUTTER was INCREASED from 11350 L.F. to 11894 L.F. for a total INCREASE of $10,336.00. 37 Bid Item 37 BEAM GUARDRAIL TYPE 31 was REDUCED from 140 L.F. to 81.25 L. F. for a total DEDUCTION of ($3,113.75). 38 Bid Item 38 PLASTIC LINE was INCREASED from 7470 L.F. to 12104 L.F. for a total INCREASE of $7,414.40. 39 Bid Item 39 PLASTIC WIDE LANE LINE was INCREASED from 5440 L.F. to 5867 L.F. for a total INCREASE of $918.05 40 Bid Item 40 PLASTIC CROSSWALK LINE was DECREASED from 2250 S.F. to 1890 S. F. for a total DEDUCTION of ($1,926.00). 41 Bid Item 41 PLASTIC STOP LINE was DECREASED from 158 L.F. to 156 L.F. for a total DEDUCTION of ($14.00). 43 Bid Item 43 PLASTIC BICYCLE LANE SYMBOL was DECREASED from 19 EACH to 18 EACH for a total DEDUCTION of ($107.00). 44 Bid Item 44 PLASTIC TRAFFIC LETTER was INCREASED from 13 EACH to 75 EACH for a total INCREASE of $4,309.00. 46 Bid Item 46 TEMPORARY PAVEMENT MARKING -SHORT DURATION was REDUCED from 16000 L.F. to 3300 L.F. for a total DEDUCTION of ($635.001 47 Bid Item 47 TRAFFIC CONTROL SUPERVISOR was REDUCED from 1 EST to 0.990084 EST for a total DEDUCTION of ($24.79). 48 Bid Item 48 PEDESTRIAN TRAFFIC CONTROL was REDUCED from 1 EST. to 0 EST. for a total DEDUCTION of ($2,500.00). 49 Bid Item 49 FLAGGERS was INCREASED from an Estimated Total of $2,000 to a Total of $8,142 46 for a total INCREASE of $6,12.46. 50 Bid Item 50 OTHER TRAFFIC CONTROL LABOR was REDUCED from 1 EST to 0 EST for a total DEDUCTION of ($2,000.00)- 53 Bid Item 53 GRAVEL BACKFILL FOR DRAIN (1.6) was INCREASED from 200 C.Y. to 444.69 C. Y. for a total INCREASE of $17,282.45. 54 Bid Item 54 ABANDON PIPE was INCREASED from 35 EACH to 39 EACH for a total INCREASE of $2,050.00. 12/2012019 Page 1 Change Order #D4 55 Bid Item 55 CEMENT CONC. SIDEWALK was REDUCED from 9390 S.Y. to 8948.2 S.Y. for a total DEDUCTION of ($20,322.80). 56 Bid Item 56 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 2 was REDUCED from 1390 S.Y. to 1340.94 S.Y. for a total DEDUCTION of ($3,679.50). 57 Bid Item 57 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 3 was INCREASED from 990 S.Y. to 1874.18 S.Y. for a total INCREASE of $66,313.50. 58 Bid Item 58 CEMENT CONC. CURB RAMP was REDUCED from 59 EACH to 54 EACH for a total DEDUCTION of ($9,500.00). 59 Bid Item 59 REPLACE AND ADJUST VALVE BOX was INCREASED from 61 EACH to 67 EACH for a total INCREASE of $2,280.00. 61 Bid Item 61 REIMBURSEMENT FOR THIRD PARTY DAMAGE was REDUCED from 1 EST. to 0.078202 EST. for a total DEDUCTION of ($4,608.99). 62 Bid Item 62 ADJUST MANHOLE was INCREASED from 34 EACH to 35 EACH far a total INCREASE of $510.00. 65 Bid Item 65 MAILBOX SUPPORT TYPE 1 was REDUCED from 5 EACH to 0 EACH for a total DEDUCTION of ($6,750.00). 66 Bid Item 66 CONNECTION TO DRAINAGE STRUCTURE was INCREASED from 9 EACH to 24 EACH for a total INCREASE of $40,500.00. r68 Bid Item 68 LICENSED SURVEYING was INCREASED from 1 EST. to 1.03441967 EST. for a total INCREASE of $516.30. 71 Bid Item 71 COATED CHAIN LINK FENCE TYPE 4 was INCREASED from 800 L.F. to 943 L.F. for a total INCREASE of $2931.50. 72 Bid Item 72 COATED END, GATE, CORNER, PULLPOST FOR CHAIN LINK FENCE was REDUCED from 82 EACH to 50 EACH for a total DEDUCTION of ($9.024.00)- 73 Bid Item 73 TOPSOIL TYPE A was INCREASED from 250 CY to 845 CY for a total INCREASE of $31,237.50. 74 Bid Item 74 6" CONCRETE MOW STRIP was INCREASED from 271 L.F. to 420 L.F. for a total INCREASE of $4,283.75. 76 Bid Item 76 BARK OR WOOD CHIP MULCH was INCREASED from 143 S.Y. to 2240.59666 S.Y. for a total INCREASE of $11,431.90. 77 Bid Item 77 PSIPE ACER GLABRUM 'ROCKY MT substituted with grandiflora 'Autumn Brilliance' 2"caliper. was INCREASED from 11 EACH to 14 EACH for a total INCREASE of $1,458.00. 79 Bid Item 79 PSIPE SYRINGA RETICULATA'IVORY SILK' substituting Acer griseum 2" caliper. was DECREASED from 14 EACH to 11 EACH for a total DEDUCTION of $1,822.50 . e0 Bid Item 80 PSIPE ARBUTUS UNEDO'ELFIN KING' was DECREASED from 23 EACH to 22 EACH for a total DEDUCTION of ($68.701. 81 Bid Item 81 PSIPE HEMEROCALLIS X'STELLA DE ORO' was INCREASED from 12 EACH to 32 EACH for a total INCREASE of $243.00. e2 Bid Item 82 PSIPE NANDINA DOMESTICA'FIRE POWER' was INCREASED from 49 EACH to 58 EACH for a total INCREASE of $328.05. 83 Bid Item 83 PSIPE POTENTILLA FRUTICOSA'ABBOTSWOOD' was DECREASED from 190 EACH to 184 EACH for a total DEDUCTION of ($218.70). 84 Bid Item 84 PSIPE RHUS AROMATICA'GRO-LOW' was DECREASED from 156 EACH to 155 EACH for a total DEDUCTION of ($22.00). 86 Bid Item 86 PSIPE COTONEASTER APICULATUS 'TOM THUMB' was DECREASED from 129 EACH to 128 EACH for a total DEDUCTION of ($17.90). 88 Bid Item 88 BENCHES was INCREASED from 3 EACH to 4 EACH for a total INCREASE of $2,100.00. 93 Bid Item 93 WHITE REFLECTIVE PAINT was INCREASED from 84 L.F. to 252 L.F. for a total INCREASE of $1,873.20 94 Bid Item 94 MINOR CHANGE was INCREASED from $93,993.36 to $124,039.87 for a total INCREASE of $30,046.51.. 96 Bid Item 96 FORCE ACCOUNT - POTHOLING was INCREASED from and Estimated Total of $42,091.39 to $44,734.39 for a total INCREASE of $2,643.00. 97 Bid Item 97 Structure Excavation Class A Incl. Haul was REDUCED from 300 CY to 268.61 CY for a total DEDUCTION of ($1,037.44). 98 Bid Item 98 Gravel Borrow for Structural Earth Wall Incl. Haul (1.87) was REDUCED from 950 CY to 603.10 CY for a total DEDUCTION of ($12,887.47). 99 Bid Item 99 Construction Geotextile for Underground Drains was INCREASED from 100 SY to 212.67 SY for a total INCREASE of $929.53. 101 Bid Item 101 Compost was REDUCED from 18 CY to 7 CY for a total DEDUCTION of ($831.60). 94N Bid Item 94N Repaint Bridge Support Columns was added to the contract at a LUMP SUM total of $7,500.82. 12/20/2017 Page 2 Change Order #04 12/2012017 Page 3 N. N. Dowrlpdw FOMANCD M Oly. um S Cott Par Wr $ Coq Nal S Cog Adl DM 1 3 REMOVING CEMENT CONC. SIDEWALK Orig. 5790.00 SY $9.75 56 452.50 Rev. 5015.68 SY $9.75 S48.902.88 t§T549 ,62 0 2 4 REMOVING CEMENT CONC. CURB AND GUTTER Orig. 9550.00 LF $4.40 $4Z020.00 Rev. 10927.00 LF $6,05880 0 3 5 REMOVING DRAINAGE STRUCTURE Orig. 49.00 EA $485.00 23 765.00 " Rev. 42.00 EA $485.00 $20.370.00 ($3.395.00) 0 4 7 ROADWAY EXCAVATION INCL. HAUL Orig. 3220.00 CY $38.50 123 970.00. Rev. 5102.11 CY $38.50 196 431. ;72,461.24 0 5 8 SELECT BORROW INCL. HAUL Orig. 7600.00 TN $22.50 171 000.00 ". Rev. 8922.31 TN $22.50 200 751.9 $29,751.98 0 6 10 CATCH BASIN TYPE 1L Orig. 9.00 EA $1,380.00 12420.00 Rev. 14.00 EA $1,380.00 19 320.00 6 900.00 0 7 11 CATCH BASIN TYPE 1 Orig. 53.00 EA $1.360.00 $72.080.00 Rev. 55.00 EA $1,360.00 $74,800.00 2,720D 0 8 16 SCH. A STORM SEWER PIPE 12 IN. DIAM. Orig. 2920.00 LF $49.82 $145,474.40 Rev. 2963.50 LF $49.82 47,641.571 §216717 0 9 17 SCH. A STORM SEWER PIPE 18 IN. DIAM. Orig. 1110.00 LF $60.00 66 600.00 Rev. 1209.00 LF $60.00 72.540.001 $5,940.00 0 10 18 SCH. A STORM SEWER PIPE 24 IN. DIAM. Orig. 290.00 LF 104.00 $30.160.001 Rev. 215.00 1 LF $104.00 $22,360.00 17 800 00 0 11 19 SHORING OR EXTRA EXCAVATION CL. B Orig. 3500.00 SF $3.15 $11,025.00 Rev. 7509.48 SF $3.15 $23,654.86 $12,629.86 0 12 20 UNDERDRAIN PIPE 6 IN. DIAM. Orig. 1180.00 LF $46.50 $54,870.00 Rev. 1303.00 LF $46.50 $60,589.50 $5,719,50 0 14 26 STRUCTURAL EARTH WALL Or' . 2900.00 SF $34.94 $101,326.00 Rev. 4471.50 SF $34.941 $156,234.21 $54,908,21 0 15 27 CRUSHED SURFACING BASE COURSE Ori 7690.00 TN 27.50 $211.475.00 Rev. 13834.40 TN $27.501 $380,446.00 $168,971.00 _ 0 16 28 HMA CL. 1/2 IN. PG 58-22 Orig. 5220.00 TN $81.501 $425,430.00 Rev. 5279.75 TN $81.501 $430,299.63 $4,869.63 0 17 29 JOB MIX COMPLIANCE PRICE ADJUSTMENT Orig. 1.00 EST $2.000.001 $2,000.00 _ Rev. 0.00 EST $2,000.02 0.00 42,000001 _ 0 18 30 COMPACTION PRICE ADJUSTMENT Orig. 1.00 EST 1 CC $100) Rev. 0.00 EST i 0% $0.00 1 AO 0 19 31 ASPHALT COST PRICE ADJUSTMENT Ong. 1.00 EST $355.00 355.00 Rev. 1.00 EST $6,574.81 $6,574.81 $6,219.81 0 21 35 CEMENT CONC. PEDESTRIAN CURB Orig. 200.00 LF $29.00 5 800.00 Rev. 340.00 LF 29.00 $9,860.0 060.00 0 22 36 CEMENT CONC. TRAFFIC CURB AND GUTTER Ori 11350.00 LF 19.00 $215.650.00 Rev. 11894.00 LF 19.00 $225,986.0 $10,33600 0 23 37 BEAM GUARDRAIL TYPE 31 Orig. 140.00 LF 53.00 $7.420.00 Rev. 81.25 LF 53.00 306.25 3 1 i x 7: 0 24 38 PLASTIC LINE Ori 7470.00 LF 1.60 $11,952. Rev. 12104.00 LF 1.60 $19,366.4 $7,4144 0 25 39 PLASTIC WIDE LANE LINE Orig. 5440.00 LF $2.15 $11,696.00 Rev. 5867.00 LF $2.15 $12.614.05 918.05 0 26 40 PLASTIC CROSSWALK LINE Orig. 2250.00 SF $5.35 $12,037.50 Rev. 1890.00 SF $5.35 $10.111.50, '"$l 926 00 0 27 41 PLASTIC STOP LINE Orig. 158.00 LF 7.00 $1.106.00 Rev. 156.00 LF $7.00$1,092.0 14 00 0 29 43 PLASTIC BICYCLE LANE SYMBOL Orig. 19.00 EA $107.00 $2,033.00 Rev. 18.00 EA $107.00 $1,926.00 10700 0 30 44 PLASTIC TRAFFIC LETTER Orig. 13.00 EA $69.50 $903.50 Rev. 75.00 EA $69.50 $5,212.50 30900 0 31 46 TEMPORARY PAVEMENT MARKING- SHORT DURATION Orig. 16000.00 LF $0.051 $800.00 Rev. 3300.00 LF $0.051 $165.00 4635 00A 0 32 47 TRAFFIC CONTROL SUPERVISOR Orig. 1.00 EST $2.500.001 $2,500.00 _, Rev. 1.00 EST $2,475.21 $2.475.21 24 8C' _ 0 33 48 PEDESTRIAN TRAFFIC CONTROL Orig. 1.00 EST $2,500.00 $2,500.00 Rev. 1.00 EST $0.00 $0.00 $2,50000 0 34 49 FLAGGERS Orig. 1.00 EST $2,000.00 $2,000.00 _..__. Rev. 1.00 EST $8,142.46 $8,142.46 6142.46 O- 35 50 OTHER TRAFFIC CONTROL LABOR Orig. 1.00 EST $2,000.00 $2,000.00 Rev. 1.00 EST $0.00 $0.001 $2,00000)0 36 53 GRAVEL BACKFILL FOR DRAIN Orig. 200.00 CY $70.63 $14.126.001. Rev. 444.69 CY $70.63 $31.408.45 $17,282-45 0 37 54 ABANDON PIPE Orig. 35.00 1 EA 512.50 $17,937.50 Rev. 39.00 EA $512.50 $19,987.50 $2,05000 0 38 55 CEMENT CONC. SIDEWALK Orig. 9390.00 SY $46.00 $431,940.00 Rev. 8948.20 SY $46.00 $411,617.20 120,322 322 80, 0 39 56 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 2 Ong. 1390.00 SY $75.00 $104,250.00 Rev. 1340.94 SY $75.00, $100,570.50 50 0 40 57 CEMENT CONC. DRIVEWAY ENTRANCE TYPE 3 Orig. 990.00 SY $75.00 74250.00:. -A3_672 Rev. 1874.18 SY $75.00 140 563.50 $66,31350 0 41 58 CEMENT CONC. CURB RAMP Orig. 59.00 EA $1,900.0 $112,100.00 - Rev. 54.00 EA $1,900.00 102 600.00 49 500.00 1 0 42 59 REPLACE AND ADJUST VALVE BOX Orig. 61.00 EA $380.00 23 180.00 Rev. 67.00 EA $380.00 $2,28000 0 43 61 REIMBURSEMENT FOR THIRD PARTY DAMAGE Orig. 1.00 $5,000.00 $5_.000.00 Rev. 1.00 EST 391.01 391.01 608.99 0 12/2012017 Page 3 Change Order #04 44 62 ADJUST MANHOLE Orig. 34.00 EA $510.00 17 340.00 AFTER THIS CHANGE Rev. 35.00 EA $510.00 17 850.00 $51000 0 45 65 MAILBOX SUPPORT TYPE 1 $537,100,31$5,823,733.44 Orig. 5.00 EA $1,350.00 6 750.00 _ Rev. 0.00 EA $1,350.00 $0.00 _ 750 00 _ 0 46 66 CONNECTION TO DRAINAGE STRUCTURE Orig. 9.00 EA $2,700.00 $24,300.00 Rev. 24.00 EA $2,700.00 $64,800.00 0500.00 0 47 68 LICENSED SURVEYING Orig. 1.00 EST $15,000.00 $15,000.00 Rev. 1.00 1 EST $15.516.30 $115.516.301 $516.30 0 48 71 COATED CHAIN LINK FENCE TYPE 4 Orig. 800.00 LF $20.50 $16,400.00 Rev. 943.00 LF $20.50 $19,331.50 ;2.931,50 0 49 72 COATED END, GATE, CORNER, PULLPOST FOR CHAIN LINK FENCE Orig. 82.00 EA 282.00 23 124.00 Rev. 50.00 EA $282.00 $14,100.00 ($9,024.00) 0 50 73 TOPSOIL TYPE A Orig. 250.00 CY $52.50 $13,125.00 Rev. 845.00 CY $52.50 $44,362.50 131,23750 0 51 74 6" CONCRETE MOW STRIP Orig. 271.00 LF $28.751 $7,791.25 Rev. 420.00 LF $28.75 $12.075.00 $4.283751 0 52 76 BARK OR WOOD CHIP MULCH Orig. 143.00 SY $5.45 $779.35. Rev. 2240.60 SY $5.45 $12,211.25 111,43190 0 53 77 PSIPE ACER GLABRUM'ROCKY MT Orig. 11.00 EA $486.00 $5,346.00 . Rev. 14.00 EA $486.00 $6,804.00 $1,458.00 0 55 79 PSIPE SYRINGA RETICULATA'IVORY SILK' Orig. 14.00 EA $607.50 $8,505.00 Rev. 11.00 EA $607.50 $6,682.50 41,822 50' 0 56 80 PSIPE ARBUTUS UNEDO'ELFIN KING' Orig. 23.00 EA 68.70 $1.580.10 Rev. 22.00 EA $68.70 $1,511.40 8 701 0 57 81 PSIPE HEMEROCALLIS X -STELLA DE ORO' Ori . 12.00 EA $12.15 145.80 Rev. 32.00 EA $12.15 388.80 243.00 0 58 82 PSIPE NANDINA DOMESTICA'FIRE POWER' Orig. 49.00 EA $36.45 1 786.05 Rev. 58.00 $36.45 $2,114.10 $328.05 0 59 83 PSIPE POTENTILLA FRUTICOSA ABBOTSWOOD' Orig. 190.00 EA $36.45 $6,925.50 ' Rev. 184.00 EA $36.45 6.706.801 4218 70 0 60 84 PSIPE RHUS AROMATICA'GRO- LOW' Ori . 156.00 EA 22.00 3432.00' Rev. 155.00 EA 22.001 $3.410.00 2200, 0 62 88 PSIPE COTONEASTER APICULATUS TOM THUMB' Orig. 129.00 EA $17.90 $2,309.10 Rev. 128.00 EA 17.90 2 291.20 S' r �0' 0 64 88 BENCHES Orig. 3.00 EA $2,100.00 $6,300.00 Rev. 4.00 EA $2,100.00 $8,400.00 2 100.00 0 65 93 WHITE REFLECTIVE PAINT Orig. 84.00 LF $11.15 $936.60 Rev. 252.00 LF $11.15 $2,809.80 $1,873.20 0 66 94 MINOR CHANGE Orig. 1.00 EST $93,993.36 $93,993.36 Rev. 1.00 EST $124.039.87 $124.039.87 ;3Q.046.51 0 68 96 FORCE ACCOUNT - POTHOLING Orig. 1.00 EST $42,091.39 $42,091.39 ' a170' 1 %TV"'14, ,. Rev. 1.00 EST $44,734.39 $44,734.39 2 643.00 0 69 97 Structure Excavation Class A Incl. Haul Orig. 300.00 CY $33.05 $9,915.00 Rev. 268.61 CY $33.05 $8,877.56 51037.44 0 70 98 Gravel Borrow for Structural Earth Wall Incl. Haul Orig. 950.00 CY $37.15 $35,292.50 Rev. 603.10 CY $37.15 $22,405.03 $42,887 4,' 0 71 99 Construction Geotext ie for Underground Drains Orig. 100.00 SY $8.25 $825.00 Rev. 212.67 SY $8.25 1 754.50929 50 0 72 101 Compost Orig. 18.00 CY $75.60 $1,360.80 Rev. 7.00 1 CY $75.60 $529.20 3l 601 0 73 94N Repaint Bridge Support Columns Ori 0 LS 0.00 0.00 Rev. 1 LS ,7 ,500.82 $7,500.82 $7,5nn.82 0 $537,100.31 ORIGINAL CONTRACT AMOUNT 12/20/2017 Page 4 CONTRACT AMOUNT CONTRACT AMOUNT NET CHANGE SUBTOTAL TAX AFTER THIS CHANGE ORDER Current $5,286,63313 $537,100,31$5,823,733.44 N/A $5,823,733.44 12/20/2017 Page 4 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Resolution No. 3299 authorizing the transfer of the Oyster Bay Public Works Facility from the City's General Fund to the City's Water Utility Fund 7R Study Session Date: December 13, 2017 COUNCIL MEETING Date: December 20. 2017 Department: Financial Services Presenter: DeWayne Pitts Phone: (360) 473-5296 SUMMARY: The City's General Fund has held on its books the Oyster Bay Public Works Facility since 1994. Over time, the City's water utility has made significant capital improvements to the facility and has been the prime resident of the property. The proposed resolution authorizes the transfer of the facility from the City's General Fund to the City's Water Utility Fund, compensating the City's General fund in the amount of the remaining depreciated book value of $1,143,329. ATTACHMENTS: 1) Resolution No. 3299. FISCAL IMPACTS (Include Budgeted Amount): Water Capital Fund ($1,143,329); General Fund $1,143,329 STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to adopt Resolution No. 3299 authorizing the transfer of the Oyster Bay Public Works Facility from the City's General Fund to the City's Water Utility Fund. COUNCIL ACTION: ❑ Approve Form Updated 01/07/15 ❑ Deny ❑ Table ❑ Continue ❑ No Action RESOLUTION NO. 3299 A RESOLUTION of the City Council of the City of Bremerton, Washington, authorizing the transfer of the Oyster Bay Public Works Facility from the City's General Fund to the City's Water Utility Fund. WHEREAS, the Oyster Bay Public Works Facility, which includes the building, real property and other assets ("Property"), is held in the general fund; and WHEREAS, the Property is primarily utilized by the City's water utility services; and WHEREAS, a transfer of the Property, from the City's General Fund to the City's Water Utility Fund, as well as a transfer of funds compensating for the transfer, from the City's Water Utility Fund to the City's General Fund, is proposed to ensure that the assets and their values are properly located and accounted for; and THEREFORE, WHEREAS, the Remaining Book value of the Property is $1,143,329; NOW THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION]. The City Council hereby authorizes and directs the Director of Financial Services to transfer the Property from the City's General Fund to the City's Water Utility Fund, and to transfer funds in the amount of $1,143,329, from the City's Water Utility Fund to the City's General Fund, as compensation for the transfer. SECTION 2. Severability. If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 3. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this day of )2017. ERIC YOUNGER, COUNCIL PRESIDENT APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney SHANNON L. CORIN, City Clerk Oyster Bay Property Transfer AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Lease Agreement with Alexander Cart Rentals, Inc. for Gold Mountain Golf Course Cart Pad Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 7S 12/13/17 12/20/17 Parks Jeff Elevado (360) 473-5428 SUMMARY: The City ("Lessor") and Alexander Cart Rentals, Inc. ("Lessee") desire to enter into a new lease for the property at Gold Mountain Golf Club for Lessee's golf cart rental business. The current lease with Lessee expires December 31, 2017, and the new lease will commence January 1, 2018. ATTACHMENTS: 1) Lease FISCAL IMPACTS (Include Budgeted Amount): 2018 revenue of $13,200 to Gold Mountain Golf Course Fund. STUDY SESSION AGENDA: ❑ No Presentation ❑x Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Lease Agreement with Alexander Cart Rentals, Inc. for the property at Gold Mountain Golf Club for Lessee's golf cart rental business; 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 LEASE THIS LEASE is entered into on the date fully executed by and between THE CITY OF BREMERTON, a municipal corporation, (hereinafter referred to as "City"), and ALEXANDER CART RENTALS, INC., a Washington corporation, (hereinafter referred to as "Lessee"). WHEREAS, the City is the owner of Gold Mountain Golf Club ("Golf Club"), which ownership includes the land upon which said golf complex is located, the buildings and other improvements which are a part thereof, and WHEREAS, Lessee has a private golf cart rental business and agrees to provide golf cart services to COLUMBIA HOSPITALITY ("Operator") of the Golf Club from this business at a reduced rate. Lessee desires to lease land from the City at the Golf Club for the storage of golf carts associated with Lessee's business ("Lease"); and NOW, THEREFORE, for valuable consideration and by mutual consent of the parties, the prior Lease between the parties is hereby terminated in its entirety and replaced with a new lease as follows: 1. PREMISES. City does hereby lease to the Lessee the cart pad consisting of approximately 15,000 square feet of land ("Cart Pad") as set forth in Exhibit A, also referred to herein as ("Premises"), said exhibits attached hereto and incorporated by reference. The Premises are located upon real property commonly known as the Gold Mountain Golf Club ("Golf Club") legally described as Section 36, Township 24 N, Range 1 West, WM in Kitsap County, Washington. 2. TERM. The term of this Lease shall be for one (1) year commencing on January 1, 2018 (the "Commencement Date") and ending on December 31, 2018 ("Initial Term"). At the expiration of the Initial Term, this Lease will automatically renew for one year annual terms unless terminated as provided in Section 17 below. 3. CONSIDERATION. (a) Rent. Lessee shall pay annual rent of Thirteen Thousand Two Hundred Dollars ($13,200.00) ("base lease payment"), which includes utilities as set forth in Section 6 or the Lease, for its use of the Cart Pad payable in monthly installments on the first of each month during the term of this lease. In addition to the Base Lease Payment, Lessee shall pay a leasehold excise tax, pursuant to Subsection (c) below. (b) Consumer Price Index Adjustments. Beginning in January 1, 2019, the Base Lease Payment shall be adjusted every year during the term(s) of this Lease 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 2017 CPI index June to June every year (i.e. June 2017 - June 2018). The CPI adjustment shall occur on the following January 1st of each year during the term of this Lease. Gold Mountain — Cart Pad Lease (c) Leasehold Excise Tax. In addition to the Lease Payment, Lessee shall pay a leasehold excise tax, pursuant to RCW 82.29A.030, on all Lease Payment amounts paid to the City, currently in the amount of 12.84 percent of the base Lease Payment and as may be adjusted pursuant to Ch. 82.29A RCW. Lessee shall pay the leasehold excise tax with the applicable lease payment. In addition, Lessee agrees to pay when due, the leasehold excise tax, or any additional assessments thereto, with respect to any payment or obligation hereunder, which is deemed by the State of Washington to be taxable rent under said chapter and to indemnify and hold the Lessor harmless from the same. (d) Holding Over. If Lessee remains in possession of the Premises or any part thereof after the expiration or termination of this Lease without the express written consent of City, such occupancy shall be a tenancy from month-to-month at a rental in the amount of 100% of the Fair Market Value for renting the land and upon all the terms hereof applicable to a month-to-month tenancy. 4. USE OF PREMISES. (a) Cart Pad. The Lessee shall have the right to use the Cart Pad for the storage, maintenance and operation of its private golf cart rental business. (b) City's Use of Cart Pad. By mutual agreement of the Director of Parks and Recreation, or his or her designee and Lessee, portions of the Golf Pad may be used by the City for use associated with the need for overflow parking for events at the Golf Club. In no event shall the City be able to use the Golf Pad for overflow parking without at least 90 days notice to the Lessee. (c) Compliance with Laws. Lessee shall not use the Premises or any part thereof for any illegal purpose. Lessee shall not engage in any activity with respect to or on the Premises other than the express uses and purposed stipulated therein, without obtaining prior written consent from the City, which consent can be withheld for any reason. Lessee agrees to conform to municipal, county, and state codes, statutes, ordinances, and regulations concerning the use and occupation of the Premises. 5. ADDITIONAL TERMS AND CONDITIONS. (a) Management of Lease. The management of this Lease relating to the day to day operations and use of the Cart Pad by Lessee will be by and through the Operator of the Golf Club as authorized and directed by Lessor. The contact for the Operator is: day. Mark Knowles Columbia Hospitality 360-415-6872 7263 West Belfair Valley Road Bremerton, WA 98312 (b) Cart Rental. Lessee will rent its carts to City on an as needed basis at $25 per 2 Gold Mountain — Cart Pad Lease (c) Cart Washing. Lessee will wash its carts in a different location (opposite of first tee -box Cascade). Lessee will locate the washing area away from the first tee box. (d) Tents. Lessee will power -wash the tent structures as necessary. (e) Fence. Lessee will maintain, at Lessee's expense, the six (6) foot wooden fence previously installed by Lessee (as identified on Exhibit A) to mostly visually block carts, etc. from the view line of parking lot. 6. UTILITIES. The City agrees to provide and pay all charges for electricity, water, sewer, gas/propane, garbage, telephone, and for all other public utilities used at the Premises. The City shall not be responsible for failure of provision of these services unless said failure is due to nonpayment for services. 7. ALTERATIONS AND ADDITIONS. Lessee shall not make or allow to be made any alterations, improvements, or changes to or of the Premises or any party thereof without the prior written consent of City, and all improvements, alterations, or changes so made, shall become a part of the leased Premises and shall belong to City upon expiration or sooner termination of this Lease unless otherwise agreed to by the parties. With respect to such alterations, improvements or changes to the Premises requested by Lessee, City's consent shall not be unreasonably withheld. In the event City consents to the making of any alterations, additions, or improvements to the Premises by Lessee, the same shall be made by Lessee at Lessee's sole cost and expense, the Premises and Lessee's leasehold interest therein shall remain free from any lien of any kind whatsoever, and construction of such alterations, additions or improvements shall be done in compliance with all laws and governmental requirements. 8. MAINTENANCE AND REPAIRS. (a) The City's Repairs. The City shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Property, or any part thereof, during the Term unless the premises suffers damage as a result of actions or inaction by the City. (b) Lessee's Repairs, Alteration, Maintenance and Replacement. (i) Lessee shall, at its sole cost and expense, keep and maintain the Property and all improvements (regardless of ownership) in good order and repair, in a clean, attractive, and safe condition. City and Lessee agree that the current condition of the premises is satisfactory. (ii) All additions, repairs, alterations, replacements or changes to the Property and to any improvements on the Property shall be made in accordance with, and ownership shall be governed by, Section 7, above. 9. LIENS. Lessee shall keep the Premises, Lessee's leasehold interest therein and the Building and Land on which the Premises are situated free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee. 10. INDEMNIFICATION. Lessee shall indemnify, defend and hold City harmless from all loss damage, liability or expense resulting from any injury to any person or any loss of or 3 Gold Mountain — Cart Pad Lease damage to any property caused by or resulting from any act or omission of Lessee or any officer, agent, employee, guest, invitee or visitor of Lessee in or about the Premises, but the foregoing provision shall not be construed to make Lessee responsible for injuries to third parties caused by the negligence of City or any officer, agent, employee, guest, invitee or visitor of City. City shall not be liable for any loss or damage to person or property sustained by Lessee, or other persons, which may be caused by theft or any act of neglect of any Lessee, or of any other person, or by any other cause, unless caused by the sole negligence of City or its officers, licensees, agents, employees, guests, invitees or visitors. 11. LIABILITY INSURANCE; HAZARD INSURANCE. (a) Liability Insurance. Lessee, at its own expense, shall provide and keep in force with companies acceptable to City comprehensive general liability insurance in the amount of not less than One Million Dollars ($1,000,000.00) per occurrence for bodily injury and property damage. Lessee shall furnish City with a certificate of such policy within thirty (30) days of the Commencement Date of this Lease and whenever required shall satisfy City that such policy is in full force and effect. Such policy shall name City as an additional insured and shall be primary and noncontributing with any insurance carried by City. The policy shall further provide that it shall not be canceled or altered without twenty (20) days prior written notice to City. (b) Hazard Insurance. Throughout the term of this Lease, City shall procure and maintain fire, hazard and extended coverage insurance on the Premises. Should the premises become uninhabitable due to loss or become uninhabitable for any other reason the City shall have the option of terminating this lease. 12. DAMAGE OR DESTRUCTION. In the event the Premises are damaged to such an extent as to render the same unusable in whole or in substantial part, or are destroyed, Lessee shall give City or City's agent immediate written notice thereof, and it shall be optional with City to repair or rebuild the same. City shall have not more than thirty (30) days after date of such notification to notify Lessee in writing of City's intention to repair or rebuild the Premises, or the part so damaged and, if City elects to repair or rebuild Premises, City shall prosecute the work of such repairing or rebuilding without unnecessary delay, and during such period the rent of the Premises shall be abated in the same ratio that that portion of the Premises rendered for the time being unfit for occupancy shall bear to the whole of the Premises. If City shall fail to give the notice aforesaid, Lessee shall have the right to declare this Lease terminated by written notice served upon City or City's agent. In the event that there is not sufficient insurance to pay for the repair or rebuilding of any damaged structure, then the City, in its sole discretion, may terminate this Lease. Provided, however, prior to terminating the Lease for this reason, the City shall discuss with the Lessee other ways to provide for the funding shortfall, but such will not prohibit the City from terminating the lease. 13. PERSONAL PROPERTY. Where furnished by or at the expense of Lessee, all movable property, furniture, furnishings and trade fixtures, other than those affixed to the Premises so that they cannot be removed without material damage, shall remain the property of and be removable by Lessee, and in case of damage by reason of such removal, Lessee shall restore the Premises to good order and condition. Lessee shall pay or cause to be paid before delinquency any and all taxes levied or assessed and which become payable during the term .19 Gold Mountain — Cart Pact Lease hereof upon all Lessee's improvements, equipment, furniture, fixtures, and other personal property located in the Premises. 14. ENTRY BY CITY. At any and all reasonable times during regular business hours, upon one (1) day's prior notice to Lessee, City reserves and shall have the right to enter the Premises to inspect the same a reasonable number of times, to submit the Premises to prospective purchasers or Lessees, to repair the Premises without abatement of Rent, and may for the purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby and further providing that the business of Lessee shall not be interfered with unreasonably. Lessee hereby waives any claim for damages or for any injury or inconvenience to or interference with Lessee's business or any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby, if City shall have taken every reasonable measure to avoid any such injury, inconvenience or interference. City shall have the right to use any and all means which City may deem proper to open any doors or otherwise obtain access to the Premises in an emergency, without liability to Lessee except for any failure to exercise due care for Lessee's property, and any entry to the Premises obtained by City by any of said means or otherwise shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into or a detainer of the Premises or an eviction of Lessee from the Premises or any portion thereof. 15. ASSIGNMENT AND SUBLETTING. Lessee shall not either voluntarily or by operation of law assign, transfer, mortgage, pledge hypothecate, or encumber this Lease or any interest therein and shall not sublet the Premises or any part thereof or any right or privilege of Lessee thereto or allow any person (the employees, agents, servants, and invitees of Lessee excepted) to occupy or use the Premises or any portion thereof, without the prior written consent of City, which consent by City shall not be unreasonably withheld. Any such assignment or subletting without compliance with the terms of this paragraph shall be void and shall, at the option of City, constitute a default under the terms of this Lease. If Lessee is a corporation, any transfer of this Lease from Lessee by merger, consolidation, or liquidation or any change in the ownership or power to vote in the majority of the outstanding voting stock of Lessee shall constitute an assignment for purposes of this paragraph. Consent to one assignment, subletting, occupation, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation, or use by another person. Consent to any such assignment or subletting shall in no way relieve Lessee of any liability under this Lease. City may assign the Rent herein provided to any person, partnership, corporation, or bank, and Lessee agrees when notified in writing by the assignee of such assignment to make the Rent payments to assignee under the terms of said assignment. 16. LESSEE'S DEFAULT. In case of violation of this Lease by Lessee, the City shall notify Lessee in writing of such violation. The Lessee shall cure any default that imposes an immediate threat to the public health, safety or welfare within 24 hours. Any default in the payment of monies due under any provision of this Lease shall be cured within 10 days. All other violations shall be cured within thirty (30) days following the delivery of said notice; provided, however, that if the nature of Lessee's default is such that more than thirty (30) days are reasonably required for such cure, then Lessee shall not be deemed to be in default if Lessee commences such cure within said thirty (30) days and thereafter, diligently prosecutes such cure to completion. In the event of the failure of the Lessee to remedy any default or violation of the 5 Gold Mountain — Cart Pad Lease covenants, agreements, or conditions herein contained within the period of time specified in the notice, this Lease and all rights of Lessee hereunder shall be terminated and the City shall have the right to enter upon the Premises and re -take possession thereof. Continued violations for same or similar reasons may be grounds for immediate termination if a subsequent violation occurs after the City gives notice that it intends to terminate upon the further occurrence of similar violations. 17. REMEDIES ON DEFAULT. (a) Termination and Re-entry. This Lease can be terminated for good cause. Good cause shall mean any of the following; (i) failure to timely cure a default of this Lease after notice as provided in Section 16 above, (ii) termination or expiration of this Lease between the City and the Lessee, (iii) lack of sufficient insurance proceeds to rebuild or repair the facility after damage or destruction; (iv) insolvency of the Lessee, or the appointment of a receiver to administer its financial affairs, or (v) any reason specified elsewhere in this Lease, or the attachments hereto, that is designated as grounds for termination. (b) Termination for convenience. Following the expiration of the Initial term as defined in Section 2 above, either party can terminate this lease for convenience upon one hundred twenty (120) days notice to the other party. Such notice shall be in writing and delivered to the address provided herein. Upon the termination of the Lease, the Lessee shall vacate the Premises, and the City may immediately reenter and take possession of the Premises without the necessity of a court order to do so. (b) Costs of Recovery. Lessee agrees to pay City the cost of recovering possession of the Premises, the expense of reletting, and any other costs or damages arising out of Lessee's default including, without limitation, the costs of removing persons and property from the Premises, the costs of repairing or altering the Premises for reletting, brokers' commissions, and legal expenses and fees. Notwithstanding any termination, reentry, or reletting, the liability of Lessee for the Rent and Additional Rent for the balance of the term of this Lease shall not be extinguished and Lessee shall pay and City may recover from Lessee at the time of termination, reentry, or reletting, the excess, if any, of the amount of the Rent reserved in this Lease for the balance of the term hereof over the then reasonable rental value of the Premises for the same period. Reasonable rental value shall mean the amount of rental which City does or could reasonably be expected to obtain as rent for the remaining balance of the Lease term. (c) Removal of Personal Property. In the event of a retaking of possession of the Premises by City, Lessee shall remove all personal property located thereon and upon failure to do so upon demand of City, City may remove and store the same in any place selected by City, including but not limited to a public warehouse, at the expense and risk of Lessee. If Lessee shall fail to pay the cost of storing any such property after it has been stored for a period of thirty (30) days or more, City may sell any or all of such property at a public or private sale and shall rol Gold Mountain — Cart Pad Lease apply the proceeds of such sale first to the cost of such sale, secondly to the payment of the charges for storage, if any, and thirdly to the payment of any other sums of money which may be due from Lessee to City under the terms of this Lease, and the balance, if any, to Lessee. Lessee hereby waives all claims for damages that may be caused by City's lawfully reentering and taking possession of the Premises or lawfully removing and storing the property of Lessee as herein provided and will save City harmless from loss or damages occasioned by City thereby, whether such lawful reentry shall be considered or construed to be a forcible entry. (d) Remedies Cumulative. The remedies hereinafter described shall be cumulative and City shall be entitled to pursue any other remedy now or hereafter available to City under the law or judicial decisions of the State of Washington. 18. HAZARDOUS SUBSTANCES. Except as disclosed on an annual basis to the City, Lessee shall not generate, release, spill, store, deposit, transport, or dispose of (collectively "Release") any hazardous substances, sewage, petroleum products, hydrocarbons, radioactive substances, medicinal, bacteriological, or disease -producing substances, hazardous materials, toxic substances or any pollutants or substances defined as hazardous or toxic in accordance with applicable federal, state, and local laws and regulations ("Hazardous Substances") in, on or about the Premises. Lessee shall indemnify, defend and hold City harmless from any and all claims, liabilities, losses, damages, cleanup costs, response costs, and expenses (including reasonable attorneys' fees) arising out of or in any way related to the Release by Lessee, or any of its agents, representatives, or employees, or the presence of such Hazardous Substances in, on or about the Premises occurring at any time after the Commencement Date and arising out of the activities of Lessee, or any of its agents, representatives or employees. The provisions of this paragraph shall survive termination or expiration of this Lease. 19. GENERAL PROVISIONS. City and Lessee agree to the following general provisions: (a) Costs and Attorney Fees. If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney fees in connection therewith. It is agreed that the venue of any legal action brought under the terms of shall be in Kitsap County. (b) Insolvency. In the event that the Lessee shall become insolvent or go into bankruptcy, this Lease may be canceled at the option of the City without notice, and the City may take immediate possession of the Premises and the whole thereof and the same shall not become an asset in bankruptcy. (c) Nondiscrimination. Lessee shall not discriminate in employment or services to the public on the basis of sex, race, color, creed, national origin, age, sexual orientation, marital status, physical, mental or sensory handicap except an employment action based on a bona fide occupational qualification. (d) Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions of this Lease shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach. (e) Binding Effect. This Lease shall be binding upon the heirs, successors, assigns and all other parties legally empowered with signatory rights of any or all of the parties hereto. 7 Gold Mountain — Cart Pad Lease (f) Paragraph Headings. The paragraph or section headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. (g) Severability. Any provisions of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provision shall remain in full force and effect. (h) Previous Agreements Superseded. The terms and conditions of this Lease supersede the terms, obligations and conditions of any existing or prior agreement between the parties regarding the subject matter of this Lease. (i) Entire Agreement. This Lease, including the exhibits and statutes referenced herein contain the entire agreement between the Parties and are the embodiment of all written or oral representations between the parties hereto. 0) Amendments. This Lease may be amended at any time only by written agreement signed by the parties. (k) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. (1) Recordation. Neither City nor Lessee shall record this Lease, but a short form memorandum hereof may be recorded at the request of City. (m) Quiet Possession. Upon Lessee paying the Rent reserved hereunder and performing all of the covenants, conditions, and provisions on Lessee's part to be observed and performed hereunder, Lessee shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease. The Premises are leased subject to any and all existing encumbrances, conditions, rights, covenants, easements, restrictions, rights-of-way, and any matters of record, applicable zoning and building laws, and such matters as may be disclosed by inspection or survey. (n) Execution. This Lease may be executed in several counterparts, each of which shall be deemed an original instrument. (o) Notices. All notices to be given hereunder shall be in writing and shall be personally delivered and receipt acknowledged, sent by United States certified mail, return receipt requested, sent by facsimile, with original delivered within three (3) days, or sent by overnight delivery through public or private service, delivery charge prepaid, and addressed to the party at the respective mailing address as herein set forth. To City: Director of Parks and Recreation City of Bremerton 3456 th Street, Suite 100 Bremerton, WA 98337 N. Gold Mountain — Cart Pad Lease To Lessee: Scott Alexander Alexander Cart Rentals, Inc. 3410 Circle Way Bremerton, WA 98312 It is understood that each party may change the address to which notice may be sent by giving a written notice of such change to the other party hereto in the manner herein provided. (p) Lessee's Corporate Authority. Lessee is a Washington Limited Liability Company, and each individual executing this Lease on behalf of said LLC represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance with the bylaws of said corporation, and that this Lease is binding upon said corporation in accordance with its terms. Lessee further represents and warrants that it is fully registered and qualified to do business in the State of Washington. IN WITNESS WHEREOF the parties hereto have executed this Lease on the date set forth below. CITY OF BREMERTON ALEXANDER CART RENTALS, INC. PATTY LENT, Mayor By: SCOTT ALEXANDER Its: DATE: APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attorney DATE: R:\Legal\Legal\Files\Current Active Files\Gold Mountain\Cart Pad Leases\Cart Pad Lease 2018.doc (Notary Acknowledgment on Next Page) E Gold Mountain — Cart Pad Lease STATE OF WASHINGTON) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Patty Lent is the person who appeared before me, and said person acknowledged that he/she 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 City for the uses and purposes mentioned in the instrument. DATED: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires STATE OF WASHINGTON) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Scott Alexander is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged it as the of Scott Alexander's Golf Shop, Inc. to be the free and voluntary act of such Corporation for the uses and purposes mentioned in the instrument. DATED: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 10 Gold Mountain — Cart Pad Lease SUBJECT: Ordinance No. 5342 establishing the City of Bremerton's 2017 Budget Amendments AGENDA BILL CITY OF BREMERTON CITY COUNCIL Study Session Date COUNCIL MEETING Date SUMMARY: This is a year-end housekeeping action. Department MA December 13, 2017 December 20, 2017 Finance Presenter: Caroline Tompson Phone: (360) 473-5209 The Bremerton City Council adopted the 2017 Annual City Budget by Ordinance No. 5315 on December 7, 2016 and later amended the budget by Ordinance No. 5323 on June 7, 2017. In preparation for wrapping up 2017, it is necessary to do a final amendment to the budget to incorporate Council actions and other unforeseen items that have arisen subsequent to the last amendment. This amendment is necessary to provide adequate expenditure authority for various City funds and departments. ATTACHMENTS: 1) Ordinance No. 5342 amending the 2017 Fiscal Year Budget; 2) Exhibit A; and 3) Detail Fund Listing FISCAL IMPACTS (Include Budgeted Amount): Overall 2017 budget will be $171,678,061 (inclusive of fund balances). STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda o General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5342 of the City Council of the City of Bremerton, Washington, amending Ordinance No. 5323 establishing the City of Bremerton's Fiscal Year 2017 budget as amended by Ordinance No. 5315. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 ORDINANCE NO. 5342 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Ordinance No. 5315 establishing the City of Bremerton's Fiscal Year 2017 budget as amended by Ordinance No. 5323. WHEREAS, the City Council passed the Fiscal Year 2017 City Budget Ordinance No. 5315 on December 7, 2016; and WHEREAS, the City Council subsequently amended the Fiscal Year 2017 City Budget by Ordinance No. 5323 on June 7, 2017 to provide for certain programs and actions taken up to that point requiring amendment to the 2017 budget; and WHEREAS, the City Council has previously amended the budget by various motions and resolutions subsequent to June 7, 2017 which require a formal amendment by ordinance; and WHEREAS, several City Departments and Funds are experiencing or anticipate additional expenses due to factors such as costs related to provision of contracted services, changed allocations of staff time; and WHEREAS, several City Departments and Funds require adjustment to revenues to reflect activity in 2017 or timing changes from that which was anticipated in the 2017 budget; and WHEREAS, certain reclassifications of revenues and expenditures are required to properly reflect budget categories in a manner consistent with actuals in accordance with BMC 3.0.010; and WHEREAS, each of these actions has an impact on the City of Bremerton's FY 2017 Annual Budget resulting in the need to amend this Budget document; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION]. Ordinance No. 5315 establishing the City of Bremerton's 2017 Budget as amended by Ordinance No. 5323 is hereby amended as follows; 1) regular revenues and unencumbered fund balances of $171,678,061, the total for each fund as set forth in Exhibit A, attached hereto and incorporated herein by this reference, and 2) in accordance with BMC 3.02.010, expenditures and ending fund balances of $171,678,061 as set forth in Exhibit A. 2017 Final Budget Amendment SECTION 2. That the totals for the funds noted in Exhibit Aare hereby appropriated for the fiscal year 2017. SECTION 3. Severability. If anyone or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the day of , 2017 ERIC YOUNGER, Council President Approved this day of , 2017 ATTEST: PATTY LENT, Mayor APPROVED AS TO FORM: SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of , 2017 EFFECTIVE the day of , 2017 ORDINANCE NO. 2 2017 Final Budget Amendment 2017 REVENUE SOURCES - ALL FUNDS Amended by Ordinance No. 5342 Exhibit A BEG LIC. INTER- CHARGES FINES 2017 FUND AND GOVT FOR AND OTHER TOTAL FUND HAL. TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET General un General Government: City Council 140,567 140,567 Executive 172,294 172,294 Financial Services 2,957,250 500,800 640,849 40,000 4,138,899 Legal 462,509 462,509 Human Resources 227,958 227,958 Community Development 508,500 75,000 451,520 1,035,020 Municipal Court 14,000 328,550 308,600 52,800 703,950 City Auditor 31,359 31,359 Law Enforcement 7,000 268,467 135,200 5,700 5,700 422,067 Fire/EmergencyMedical 1,235,700 1,100 1,300 550,350 1,500 5,200 1,795,150 Police & Fire Pension 57,953 57,953 General Facilities 200,181 277,897 478,078 Parks 300 15,000 269,000 72,100 356,400 Engineering 47,000 84,000 1,619,428 1,750,428 Non -Departmental 25,896,780 142,785 770,950 63,679 865,000 1,201,619 28,940,813 Beginning Fund Balance 7,498,995 7,498,995 7,498,995 30,089,730 1,207,485 1,286,670 5,293,444 1,220,800 1,615,316 48,212,440 Total General Fund Special Revenue Funds: Street 1,217,748 1,160,000 844,020 88,300 912,645 4,222,713 Contingency Reserve 939,373 90,883 1,030,256 Lodging Tax 456,145 605,000 2,000 1,063,145 Parking System 392,336 250,000 1,353,900 1,996,236 Comm. Dev. Block Grant 350,420 415,000 51,000 64,150 880,570 Abatement Revolving Fund 337,963 25,000 2,000 364,963 Police Special Projects 394,634 15,000 28,000 437,634 Public Access Television 520,864 293,200 112,535 65,400 991,999 Gift & Donations Fund 60,999 30,340 91,339 Trial Improvement 78,350 20,000 300 98,650 One Percent for Arts 50,945 9,500 300 60,745 Conference Center Oper 26,734 1,147,771 366,000 1,540,505 4,826,511 1,765,000 293,200 1,279,020 1,409,106 290,000 2,915,918 12,778,755 Total Spec. Rev. Funds Debt Service Fund: 2010 LTGO 181,927 357,280 106,325 91,225 736,757 2010 UTGO/LTGO (B) 134,022 815,000 31,086 172,525 1,152,633 Government Center LTGO 89,765 328,025 417,790 2015 Public Safety Bond 58,346 500,000 450 558,796 464,060 1,672,280 0 137,411 0 0 592,225 2,865,976 Total Debt Service Fund Canital Improvement Funds: General Govt Capital Improv. 1,471,806 1,450,000 5,560 2,927,366 Park Facilities Construction 109,548 124,197 180,666 414,411 Residential Street Capital 0 480,000 480,000 Transportation Capital Projects 270,549 272,630 4,109,381 4,652,560 Fire Public Safety Capital 4,103,842 13,000 4,116,842 Lebo Blvd Construction 47,537 5,351,128 100,500 5,499,165 Washington Ave Connector 60,760 90,640 214,230 365,630 6,064,042 1,722,630 0 9,675,3460 0 993,956 18,455,974 Total Capital Improv. Funds Total General Gov't Funds 18,853,608 35,249,640 1,500,685 12,378,447 6,702,550 1,510,800 6,117,415 82,313,145 2017 REVENUE SOURCES - ALL FUNDS Amended by Ordinance No. 5342 Exhibit A BEG LIC. INTER- CHARGES FINES 2017 FUND AND GOVT FOR AND OTHER TOTAL FUND HAL. TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET Enterprise Funds: Water Utility 2,699,774 12,643,339 20,000 325,600 15,688,713 Water Capital 7,812,367 3,502,024 11,314,391 Wastewater Utility 3,391,205 89,000 15,067,350 19,000 46,027 18,612,582 Wastewater Capital 10,797,310 200,000 2,004,807 13,002,117 Stormwater Utility 1,083,202 3,413,378 8,000 2,850 4,507,430 Stormwater Capital 4,039,614 713,170 4,752,784 Utility Debt Reserve 1,727,564 11,690 1,739,254 Gold Mountain Golf Complex 12,339 4,392,664 15,000 4,420,003 31,563,375 89,000 0 200,000 35,516,731 47,000 6,621,168 74,037,274 Total Enterprise Funds Internal Service Funds: Risk Management 2,811,546 2,019,465 4,831,011 Self Ins Health & Welfare Reserve 921,351 921,351 Employment Security 582,672 12,000 594,672 Accumulated Leave Liability 263,218 212,000 475,218 ER&R Operations & Maint. 304,645 1,499,494 2,500 1,806,639 ER&R Equipment Reserve 4,109,654 1,160,382 5,270,036 Information Services 220,600 1,206,615 1,500 1,428,715 9,213,686 0 0 0 2,706,109 0 3,407,847 15,327,642 Total Internal Service Funds Total Business Type Funds 40,777,061 89,000 0 200,000 38,222,840 47,000 10,029,015 89,364,916 Total All Funds 59,630,669 35,338,640 1,500,685 12,578,447 44,925,390 1,557,800 16,146,430 171,678,061 2017 EXPENDITURES - ALL FUNDS Amended by Ordinance No. 5342 Exhibit A 2017 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL. BUDGET General Fund General Government: City Council 320,800 52,142 372,942 Executive 343,000 94,016 437,016 Financial Services 1,232,300 338,697 1,570,997 Legal Department 1,018,600 130,996 1,149,596 Human Resources 344,200 276,407 620,607 Community Development 1,322,356 503,342 60,000 1,885,698 Municipal Court 871,300 522,029 1,393,329 City Auditor 72,400 7,141 79,541 Law Enforcement 9,232,100 1,562,958 10,795,058 Fire/Emergency Medical 8,449,100 990,232 9,439,332 Police & Fire Pension 1,400,500 412,300 1,812,800 General Facilities 408,217 1,154,525 332,904 1,895,646 General Parks 2,006,200 834,866 2,841,066 Engineering 1,987,997 440,155 2,428,152 Non -Departmental 170,000 3,366,437 506,650 1,630,883 5,673,970 Ending Fund Balance 5,816,690 5,816,690 29,179,070 10,686,243 0 839,554 1,690,883 5,816,690 48,212,440 Total General Fund Special Revenue Funds: Street 1,312,390 1,529,437 195,000 1,185,886 4,222,713 Contingency Reserve 1,030,256 1,030,256 Lodging Tax 374,200 155,000 533,945 1,063,145 Parking System 955,530 502,907 25,000 170,000 342,799 1,996,236 Comm. Dev. Block Grant 132,600 342,283 405,687 880,570 Abatement Revolving Fund 153,500 211,463 364,963 Police Special Projects 108,500 90,000 239,134 437,634 Public Access Television 349,600 89,472 70,000 482,927 991,999 Gift & Donations Fund 30,040 61,299 91,339 Trial Improvement 30,900 67,750 98,650 One Percent for Arts 18,000 42,745 60,745 Conference Center Oper 1,503,955 32,778 3,772 1,540,505 1,794,590 5,135,817 535,685 380,000 325,000 4,607,663 12,778,755 Total Spec. Rev. Funds Debt Service Fund: 2010 LTGO 542,607 194,150 736,757 2010 UTGO/LTGO (B) 1,057,937 94,696 1,152,633 Government Center LTGO 333,788 84,002 417,790 2015 Public Safety Bond 503,425 55,371 558,796 0 0 2,437,757 0 0 428,219 2,865,976 Total Debt Service Fund Capital Improvement Funds: General Govt Capital Improv. 1,336,928 1,590,438 2,927,366 Park Facilities Construction 32,666 285,692 96,053 414,411 Residential Street Capital 480,000 480,000 Transportation Capital Projects 4,260,457 392,103 4,652,560 Fire Public Safety Capital 3,830,000 286,842 4,116,842 Lebo Blvd Construction Project 5,499,165 0 5,499,165 Washington Ave Connector 300,946 64,684 365,630 0 32,666 0 14,176,260 1,336,928 2,910,120 18,455,974 Total Capital Improv. Funds Total General Gov't Funds 30,973,660 15,854,726 2,973,442 15,395,814 3,352,811 13,762,692 82,313,145 2017 EXPENDITURES - ALL FUNDS Amended by Ordinance No. 5342 Exhibit A 2017 SUPPLIES & DEBT CAPITAL ENDING TOTAL FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL. BUDGET Enterprise Funds: Water Utility 4,116,094 6,841,156 1,074,887 875,900 2,780,676 15,688,713 Water Capital 1,091,078 5,932,062 4,291,251 11,314,391 Wastewater Utility 3,263,886 7,529,109 2,835,622 1,462,000 3,521,965 18,612,582 Wastewater Capital 267,000 7,858,000 4,877,117 13,002,117 Stormwater Utility 1,297,761 1,804,374 241,044 104,900 1,059,351 4,507,430 Stormwater Capital 103,000 2,880,514 1,769,270 4,752,784 Utility Debt Reserve 24,002 1,715,252 1,739,254 Gold Mountain Golf Complex 3,841,083 465,169 113,751 4,420,003 8,677,741 21,476,800 4,616,722 16,670,576 2,466,802 20,128,633 74,037,274 Total Enterprise Funds Internal Service Funds: Risk Management 854,000 1,371,465 2,605,546 4,831,011 Self Ins Health & Welfare Reserve 921,351 0 921,351 Employment Security 60,000 534,672 594,672 Accumulated Leave Liability 465,000 10,218 475,218 ER&R Operations & Maint 466,455 1,152,074 95,000 93,110 1,806,639 ER&R Equipment Reserves 42,500 1,344,578 3,882,958 5,270,036 Information Services 590,000 637,359 201,356 1,428,715 2,435,455 4,124,749 0 1,439,578 0 7,327,860 15,327,642 Total Internal Service Funds Total Business Type Funds 11,113,196 25,601,549 4,616,722 18,110,154 2,466,802 27,456,493 89,364,916 Total All Funds 42,086,856 41,456,275 7,590,164 33,505,968 5,819,613 41,219,185 171,678,061 The target ending fund balance is 8.5% of annual expenditures excluding capital. The target fund balance for the 2017 budget, as amended, is $3,532,277. The actual ending fund balance after the proposed amendments is $5,816,690; which is higher than the target amount by $2,284,413. FUND 001 CITY OF 1BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERALFUND For the Year Ended December 31, 2017 Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 REVENUES Taxes Property $ 8,440,700 $ 8,440,700 $ - Retail Sales 8,375,000 8,375,000 - Other 13,274,030 13,274,030 - Licenses and Permits 1,207,485 1,207,485 - Intergovernmental 1,211,670 1,286,670 75,000 Charges for Services 5,293,444 5,293,444 - Fines and Forfeitures 1,220,800 1,220,800 - Miscellaneous 240,170 240,170 - Transfers In & Other Financing 188,913 1,375,146 1,186,233 Total Revenues 39,452,212 40,713,445 1,261,233 EXPENDITURES Personnel Expenses 29,392,270 29,174,070 (218,200) Supplies, Services, and Taxes 10,064,043 10,691,243 627,200 Capital Expenditures 115,000 839,554 724,554 Debt Service - - - Transfers Out 1,480,883 1,690,883 210,000 Total Expenditures 41,052,196 42,395,750 1,343,554 CHANGES IN FUND BALANCE Net change in fund balances (1,599,984) (1,682,305) (82,321) Fund Balances -beginning 7,498,995 7,498,995 - Fund Balances -ending $ 5,899,011 $ 5,816,690 $ (82,321) GENERAL FUND EXPENDITURES BY DEPARTMENT City Council $ 358,942 372,942 $ 14,000 Executive 437,016 437,016 - Financial Services 1,570,997 1,570,997 - Legal Department 1,149,596 1,149,596 - Human Resources 620,607 620,607 - Community Development 1,810,698 1,885,698 75,000 Municipal Court 1,393,329 1,393,329 - City Auditor 79,541 79,541 - Police Department 10,795,058 10,795,058 - Fire Department 9,439,332 9,439,332 - Police & Fire Pension 1,812,800 1,812,800 - Generat Facilities 1,357,742 1,895,646 537,904 Parks & Recreation 2,841,066 2,841,066 - Engineering 2,428,152 2,428,152 - Non -Departmental 4,957,320 5,673,970 716,650 Total Expenditures $ 41,052,196 $ 42� 395,750 $ 1,343,554 The target ending fund balance is 8.5% of annual expenditures excluding capital. The target fund balance for the 2017 budget, as amended, is $3,532,277. The actual ending fund balance after the proposed amendments is $5,816,690; which is higher than the target amount by $2,284,413. FUND 001 CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL. FUND For the Year Ended December 31, 2017 Budget Adiustments: Items Previously Approved by Council or Finance Committee Expenditure - Decrease personnel in DCD and reallocate to professional services due to vacancies in dept. 75,000 Expenditure - Increase professional services in DCD for plan review contract services (75,000) Revenue - Increase intergovernmental for Brownfield Community Assessment and planning grant 75,000 Expenditure - Increase supplies and services in DCD for prof srvs associated with Brownsfield Assessment (75,000) Revenue - Increase transfer -in from REET for Conference Center HVAC improvements 42,904 Expenditure - Increase personnel in Council for retro PERS benefits (14,000) Expenditure - Decrease personnel in Finance and reallocate to supplies - one-time temp help and banking fees 15,000 Expenditure - Increase supplies and services and Finance for one-time temp help and increases in banking fees (15,000) Expenditure - Increase capital in Facilities for Conf. Ctr HVAC upgrades (42,904) Revenue - Increase other revenue due to sale of Oyster Bay building 1,143,329 Expenditure - Increase capital in Non -Departmental for purchase of NDGC (506,650) Expenditure - Increase supplies and services in Facilities for NDGC remodel (320,000) Expenditure - Increase capital in Facilities for NDGC remodel (175,000) New Items Not Previously Approved by Council Expenditure - Decrease personnel in Engineering & reallocate to supplies and services 7,200 Expenditure - Increase supplies & services for temporary extra help due to extended employee absence (7,200) Expenditure - Decrease personnel in Executive and reallocate to supplies and srvs for advertising & beautification 15,000 Expenditure - Increase supplies and services in Executive for community advertising and beautification (15,000) Expenditure - Decrease personnel in Fire and reallocate to supplies and services 90,000 Expenditure - Increase supplies and services in Fire for bunker gear, supplies & training for 11 new employees (90,000) Expenditure - Decrease personnel in DCD and reallocate to prof srvs for add'I plan review contract services 25,000 Expenditure - Increase supplies and services in DCD for plan review contract services due to vacancies in dept. (25,000) Expenditure - Transfer -out to Conference Center to support operation (210,000) Net adjustment to ending fund balance required $ (82,321) FUND 001 CrrY OF BR)ElV1ERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GIFT AND DONATION FUND For the Year Ended December 31, 2017 REVENUES Taxes Properly Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in fund balances Fund Balances -beginning Fund Balances -ending Budget Adiustments: Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 8,900 30,340 21,440 8,900 30,340 21,440 10,600 30,040 19,440 30,040 19,440 10,600 (1,700) 300 2,000 60,999 60,999 - $ 59,299 $ 61,299 $ 2,000 Items Not Previously Approved by Council Revenue - Increase revenue in miscellaneous Parks donations Expenditure - Increase supplies and services for miscellaneous Park projects/benches Revenue - Increase revenue in miscellaneous Fire donations Expenditure - Increase supplies and services in Fire for computer/technology/equipment Net adjustment to ending fund balance required FUND 114 11,440 (9,440) 10,000 (10,000) $ 2,000 CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CONFERENCE CENTER OPERATIONS For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers In & Other Revenue Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in fund balances Fund Balances -beginning Fund Balances -ending Bud¢et Adjustments: Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 1,493,892 1,147,771 (346,121) 1,000 1,000 - 185,000 365,000 180,000 1,679,892 1,513,771 (166,121) 1,719,187 1,503,955 (215,232) 32,778 32,778 - 1,751,965 1,536,733 (215,232) (72,073) (22,962) 49,111 26,734 26,734 - $ 45,339 $ 3,772 $ 49,111 Items Not Previously Approved by Council Revenue - Decrease transfer -in from REET for HVAC upgrades - budget reallocated to Facilities Revenue - Decrease charges for services for reduced activity fees Revenue - Increase transfer -in from General Fund to support operations Expenditure - Reduce supplies and services for reduced Columbia Hospitality professional services Expenditure - Reduce supplies and services - interfimd charges for HVAC budgeted under Facilities Net adjustment required to the ending fiord balance FUND 120 (30,000) (346,121) 210,000 185,232 30,000 CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other (Real Estate Excise Taxes) Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in & Other Revenue Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in fund balances Fund Balances -beginning Fund Balances -ending Budget Adjustments - Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 1,450,000 1,450,000 - 5,560 5,560 - 1,455,560 1,455,560 - 1,093,079 1,336,928 243,849 1,093,079 1,336,928 243,849 362,481 118,632 (243,849) 1,471,806 1,471,806 - $ 1,83 ,287 $ 1,590,438 $ (243,849) Items Previously Approved by Council Expenditure - Increase transfer -out to Parks Construction Fund for Manette Park consulting services Expenditure - Increase transfer -out to General Facilities for Conference Center HVAC improvements Expenditure - Decrease transfer -out to Conference Center - reallocated to Facilities Items Not Previously Approved by Council Expenditure - Increase transfer -out to Street for signal cabinet replacements Expenditure - Increase transfer -out to General Facilities add'I cost associated with Police roof project Expenditure - Increase tmnsfer-out to Lebo Blvd Net adjustment required to the ending fund balance FUND 308 (70,000) (42,904) 30,000 (50,515) (9,930) (100,500) $ (243,849) CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE PARK FACILITIES CONSTRUCTION FUND For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in & Other Revenue Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in fund balances Fund Balances -beginning Fund Balances -ending Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 79,215 124,197 44,982 58,500 58,500 - 52,166 122,166 70,000 189,881 304,863 114,982 32,666 32,666 - 170,710 285,692 114,982 318,358 114,982 203,376 (13,495) (13,495) - 109,548 109,548 - $ 96,053 $ 96,053 $ - Budget Adjustments: Items Previously Approved by Council Revenue - Increase transfers -in from General Gov't Capital Improvement Fund (REET) 70,000 Expenditure - Increase capital for Manette Park consulting services. (70,000) Revenue - Increase intergovernmental for Near Shore Restoration Grant from RCO 44,982 Expenditure - Increase capital for Near Shore Restoration Project (44,982) Items Not Previously Approved by Council Net adjustment required to the ending fund balance $ - FUND 310 CITY OF BREIVIERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE LEBO BLVD CONSTRUCTION PROJECT For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in & Other Revenue Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in fund balances Fund Balances -beginning Fund Balances -ending Buduet Adjustments: Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 4,781,628 5,351,128 569,500 - 100,500 100,500 4,781,628 5,451,628 670,000 4,829,165 5,499,165 670,000 5,499,165 670,000 4,829,165 (47,537) (47,537) - 47,537 47,537 - Items Not Previously Approved by Council Expenditure - Increase capital for street construction Revenue - Increase intergovernmental revenue from Transportation Improvement Board (TIB) Revenue - Increase transfer -in from REET for TIB match Net adjustment required to the ending fund balance FUND 317 (670,000) 569,500 100,500 CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE WATER CAPITAL For the Year Ended December 31, 2017 Budget Adjustments: Items Previously Approved by Council New Items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 404 1,020,000 (1,020,000) Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 REVENUES Taxes Property $ - $ - $ - Sales - - - Other - - - Licenses and Permits - - - Intergovernmental - - - Charges for Services - - - Fines and Forfeitures - - - Miscellaneous 22,151 22,151 - Transfers in & Other Revenue 3,479,873 3,479,873 - Total Revenues 3,502,024 3,502,024 - EXPENDITURES Personnel Expenses - - - Supplies, Services, and Taxes 71,078 1,091,078 1,020,000 Capital Expenditures 6,952,062 5,932,062 (1,020,000) Debt Service - - - Transfers Out - - - Total Expenditures 7,023,140 7,023,140 - CHANGES IN WORKING CAPITAL BALANCE Net change in working capital (3,521,116) (3,521,116) - Fund Balances -beginning working capital 7,812,367 7,812,367 - Fund Balances -ending working capital $ 4,291,251 $ 4,291,251 $ - Budget Adjustments: Items Previously Approved by Council New Items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 404 1,020,000 (1,020,000) CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE WASTEWATER CAPITAL For the Year Ended December 31, 2017 Budget Adiustments: Items Previously Approved by Council New Items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 464 267,000 (267,000) Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 REVENUES Taxes Property $ - $ - $ - Sales - - Other - - - Licenses and Permits - - - Intergovernmental 200,000 200,000 - Charges for Services - - - Fines and Forfeitures - - - Miscellaneous 25,371 25,371 - Transfers in & Other Revenue 1,979,436 1,979,436 - Total Revenues 2,204,807 2,204,807 - EXPENDITURES Personnel Expenses - - - Supplies, Services, and Taxes - 267,000 267,000 Capital Expenditures 8,125,000 7,858,000 (267,000) Debt Service - - - Transfers Out - - - Total Expenditures 8,125,000 8,125,000 - CHANGES IN FUND BALANCE Net change in worldng capital (5,920,193) (5,920,193) - Fund Balances -beginning working capital 10,797,310 10,797,310 - Fund Balances -ending working capital $ 4,877,117 $ 4,877,117 $ - Budget Adiustments: Items Previously Approved by Council New Items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 464 267,000 (267,000) CITY OF 13REMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE STORMWATER CAPITAL For the Year Ended December 31, 2017 EXPENDITURES Personnel Expenses - - - Supplies, Services, and Taxes - 103,000 103,000 Capital Expenditures 2,983,514 2,880,514 (103,000) Debt Service - - - Transfers Out - - - Total Expenditures 2,983,514 2,983,514 - CHANGES IN FUND BALANCE Net change in working capital (2,270,344) (2,270,344) - Fund Balances -beginning working capital 4,039,614 4,039,614 - Fund Balances -ending working capital $ 1,769,270 $ 1,769,270 $ - Budget Adjustments: Items Previously Annroved by Council New items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 484 103,000 (103,000) Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 REVENUES Taxes Property $ - $ - $ - Sales - - - Other - - - Licenses and Permits - - - Intergovernmental - - - Charges for Services - - - Fines and Forfeitures - - - Miscellaneous 9,950 9,950 - Transfers in & Other Revenue 703,220 703,220 - Total Revenues 713,170 713,170 - EXPENDITURES Personnel Expenses - - - Supplies, Services, and Taxes - 103,000 103,000 Capital Expenditures 2,983,514 2,880,514 (103,000) Debt Service - - - Transfers Out - - - Total Expenditures 2,983,514 2,983,514 - CHANGES IN FUND BALANCE Net change in working capital (2,270,344) (2,270,344) - Fund Balances -beginning working capital 4,039,614 4,039,614 - Fund Balances -ending working capital $ 1,769,270 $ 1,769,270 $ - Budget Adjustments: Items Previously Annroved by Council New items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services for major maintenance projects Expenditure - Increase supplies and services for major maintenance projects that don't qualify as capital Net adjustment required to the ending fund balance FUND 484 103,000 (103,000) CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE RISK MANAGEMENT INTERNAL SERVICE FUND For the Year Ended December 31, 2017 Budget Adjustments: New Items Not Previously Approved by Council Expenditure - Increase personnel due to a pension award Expenditure - Increase supplies and services due to a claim file Net adjustment required to the ending fund balance FUND 503 (114,000) (82,000) $ (196,000) Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 REVENUES Taxes Property $ - $ - $ - Sales - - - Other - - - Licenses and Permits - - - Intergovernmental - - - Charges for Services - - - Fines and Forfeitures - - - Miscellaneous 1,519,465 1,519,465 - Transfers in 500,000 500,000 - Total Revenues 2,019,465 2,019,465 - EXPENDITURES Personnel Expenses 740,000 854,000 114,000 Supplies, Services, and Taxes 1,289,465 1,371,465 82,000 Capital Expenditures - - - Debt Service - - - Transfers Out - - - Total Expenditures 2,029,465 2,225,465 196,000 CHANGES IN FUND BALANCE Net change in working capital (10,000) (206,000) (196,000) Fund Balances -beginning working capital 2,811,546 2,811,546 - Fund Balances -ending working capital $ 2,801,546 $ 2,605,546 Budget Adjustments: New Items Not Previously Approved by Council Expenditure - Increase personnel due to a pension award Expenditure - Increase supplies and services due to a claim file Net adjustment required to the ending fund balance FUND 503 (114,000) (82,000) $ (196,000) CITY OF BRENERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE SELF INSURANCE HEALTH AND WELFARE RESERVE For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out Total Expenditures CHANGES IN FUND BALANCE Net change in working capital Fund Balances -beginning working capital Fund Balances -ending working capital Budget Adiustmeuts- Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 526,052 395,299 921,351 526,052 395,299 921,351 (526,052) (921,351) (395,299) 526,052 921,351 395,299 Items Not Previously Approved by Council Expenditure - Increase supplies and services for final 2017 claims payments Net adjustment required to the ending fund balance FUND 504 (395,299) $ (395,299) CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EMPLOYMENT SECURITY For the Year Ended December 31, 2017 EXPENDITURES Personnel Expenses Amended Proposed Adj Required Supplies, Services, and Taxes Mid -Year Year -End From The Capital Expenditures Budget Budget Adopted Budget Debt Service 2017 2017 2017 REVENUES _ _ _ Taxes 10,000 60,000 50,000 Property $ _ $ _ $ _ Sales _ _ _ Other - - _ Licenses and Permits - - _ Intergovernmental _ _ _ Charges for Services - - _ Fines and Forfeitures - _ _ Miscellaneous 12,000 12,000 Transfers in _ _ _ Total Revenues 12,000 12,000 - EXPENDITURES Personnel Expenses 10,000 60,000 50,000 Supplies, Services, and Taxes - _ _ Capital Expenditures Debt Service Transfers Out _ _ _ Total Expenditures 10,000 60,000 50,000 CHANGES IN FUND BALANCE Net change in working capital 2,000 (48,000) (50,000) Fund Balances -beginning working capital 582,672 582,672 - Fund Balances -ending working capital $ 584,672 $ 534,672 $ (50,000) Bud et Ad"ustments: Items Previously Approved by Council Items Previously Approved by Council Expenditure - Increase supplies and services for additional unemployment benefits paid Net adjustment required to the ending fund balance FUND 506 (50,000) $ (50,000) CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ACCUMULATED LEAVE LIABILITY For the Year Ended December 31, 2017 I 4' AND Ul a� C0 Personnel Expenses Amended Proposed Adj Required Supplies, Services, and Taxes Mid -Year Year -End From The Capital Expenditures Budget Budget Adopted Budget Debt Service 2017 2017 2017 REVENUES - - - Taxes 245,000 465,000 220,000 Property $ - $ - $ - Sales - - - Other - - - Licenses and Permits - - - Intergovernmental - - - Charges for Services - - - Fines and Forfeitures - - - Miscellaneous 212,000 212,000 - Transfers in - - - Total Revenues 212,000 212,000 - I 4' AND Ul a� C0 Personnel Expenses 245,000 465,000 220,000 Supplies, Services, and Taxes - - - Capital Expenditures - - - Debt Service - - - Transfers Out - - - Total Expenditures 245,000 465,000 220,000 CHANGES IN FUND BALANCE Net change in working capital (33,000) (253,000) (220,000) Fund Balances -beginning working capital 263,218 263,218 - Fund Balances -ending working capital $ 230,218 $ 10,218 $ 220,000 Budeet Adiustments: Items Previously Approved by Council Items PreviouslyAApproved by Council Expenditure - Increase personnel for cost associated with final compensation payouts Net adjustment required to the ending fund balance FUND 507 (220,000) $ (220,000) CITY OF BREi!liERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EQUIPMENT RENTAL RESERVE - OPERATIONS AND MAINTENANCE For the Year Ended December 31, 2017 .t' gz10 1t J: Personnel Expenses Amended Proposed Adj Required Supplies, Services, and Taxes Mid -Year Year -End From The Capital Expenditures Budget Budget Adopted Budget Debt Service 2017 2017 2017 REVENUES - - - Taxes 1,645,387 1,713,529 68,142 Property $ - $ - $ - Sales - - - Other - - - Licenses and Permits - - - Intergovernmental - - - Charges for Services 1,499,494 1,499,494 - Fines and Forfeitures - - - Miscellaneous 2,500 2,500 - Transfers in & Other Financing - - - Total Revenues 1,501,994 1,501,994 - .t' gz10 1t J: Personnel Expenses 466,455 466,455 - Supplies, Services, and Taxes 1,083,932 1,152,074 68,142 Capital Expenditures 95,000 95,000 - Debt Service - - - Transfers Out - - - Total Expenditures 1,645,387 1,713,529 68,142 CHANGES IN FUND BALANCE Net change in working capital (143,393) (211,535) (68,142) Fund Balances -beginning working capital 304,645 304,645 - Fund Balances -ending working capital $ 161,252 $ 93,110 $ (68,142) Budeet Adjustments: Items Previously Approved by Council Expenditure - Increase supplies and services for vehicle contribution to ERR Reserve Fund 510 Net adjustment to ending fund balance required FUND 509 (68,142) $ 68,142 CITY OF BREMERTON 2017 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EQUIPMENT RENTAL RESERVE - RESERVES For the Year Ended December 31, 2017 REVENUES Taxes Property Sales Other Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Transfers in & Other Financing Total Revenues EXPENDITURES Personnel Expenses Supplies, Services, and Taxes Capital Expenditures Debt Service Transfers Out & Other Total Expenditures Amended Proposed Adj Required Mid -Year Year -End From The Budget Budget Adopted Budget 2017 2017 2017 23,000 23,000 - 1,069,240 1,137,382 68,142 1,092,240 1,160,382 68,142 - 42,500 42,500 1,387,078 1,344,578 (42,500) 1,387,078 1,387,078 - CHANGES IN FUND BALANCE Net change in working capital (294,838) (226,696) Fund Balances -beginning working capital 4,109,654 4,109,654 Fund Balances -ending working capital $ 3,814,816 $ 3,882,958 Budget Adiustments: Items Previously Approved by Council Revenue - Increase other revenue for vehicle contribution from Fund 509 68,142 68,142 New Items Not Previously Approved by Council Expenditure - Decrease capital and reallocate to supplies and services Expenditure - Increase supplies and services for MCT/equipment and interfund charges to surplus vehicles Net adjustment required to the ending fund balance FUND 510 68,142 42,500 (42,500) $ 68,142 0 I rIq IVA T w ryy i _ JY wy k Y 4 r a Fir m '41 F `f P F `f i B 6a a; ,NL NL IL q WL L - �'w +4" , , L6 rl"m F A P. M, irA la I Of I , �1 �',t I * A } U W E 12 LL r- 0 0 z d) q) 0 0 0 t7 a -1� �y V � re i riff m rm 0 00 Ir - C) m a --r r'r (D L �11 1...1....1 03 CL