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HomeMy WebLinkAbout07/25/2018 AGENDA PACKETCITY COUNCIL 345 6"' Street, Suite 100, Bremerton, WA 98337 ❑ Phone (360) 473-5280 JULY 25, 2018 CITY COUNCIL STUDY SESSION 5:00 PM in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public, but there will be no opportunities for input or participation; no action is anticipated during the Study Session except when deemed appropriate; and the content of these items is subject to change. If approved by Council, the items will be placed on the August 1, 2018 Council Meeting Agenda: A. NO PRESENTATION PLANNED - The following items are budgeted items or subjects that have been raised with the appropriate Council Committee Members: 1. Confirm Reappointment of Anna Laurie to the Bremerton Citizen's Commission on Council Salaries 2. Authorize Hire of Water Utility Manager at Pay Band 16, Rate 5 of the 2018 Management & Professional Salary Plan 3. Professional Services Agreement with Varsity Facility Services for Janitorial Services at six (6) City Locations 4. Purchase of 12.5% Bulk Sodium Hypochlorite Solution from HASA, Inc. for the the Westside Wastewater Treatment Plant 5. Interagency Agreement with WA State Department of Natural Resources for Wildland Fire Protection 6. Proposed Public Hearings (2) on Telecommunication Tower Option and Lease Agreement with Vertical Bridge, LLC for Forest Ridge Park B. BRIEFINGS AND FULL PRESENTATIONS 1. Public Hearing on Ordinance to amend Chapter 20.70 of the Bremerton Municipal Code related to the District Center Core Zone Mixed -Use Development C. GENERAL COUNCIL BUSINESS 1. Public Works Committee Briefing (7/17/18 Meeting) — Vice Chair Kevin Gorman 2. Finance & Parking Committee Briefing (7/24/18 Meeting) — Chair Richard Huddy 3. Lodging Tax Advisory Committee Briefing (7/23/18 & 7/24/18 Meetings) — Chair Pat Sullivan 4. Other General Council Business D. EXECUTIVE SESSION 1. 15 -Minutes to discuss "Potential Litigation"; which is allowed under RCW 42.30.110 (1)(i) Action is anticipated... E. ADJOURNMENT OF STUDY SESSION ® Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 at least 24 hours prior to the meeting. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm reappointment of Anna Laurie to the Bremerton Citizen's Commission on Council Salaries Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 7/25/2018 8/1/2018 Executive Mayor Wheeler (360) 473-5266 SUMMARY: The Mayor is seeking confirmation of the reappointment of Anna Laurie to the Bremerton Citizen's Commission on Council Salaries. This is a three year term which will expire on 07/31/2021. ATTACHMENTS: Application to the committee is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: x❑ Limited Presentation ❑ Briefing/Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the reappointment of Anna Laurie to the Bremerton Citizen's Commission on Council Salaries with a term expiring on July 31, 2021. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Authorize Hire of Cami Apfelbeck to the position of Public Works Water Utility Manager at Pay Band 16, Rate 5 of the Management, Professional, Confidential & Fiduciary Salary Plan M 'i Study Session Date: July 25, 2018 COUNCIL MEETING Date: Auaust 1. 2018 Department: Presenter: Phone: Public Works Chal Martin (360) 473-5758 SUMMARY: Following an extensive recruiting process, the Public Works Director recommends engaging Ms. Cami Apfelbeck as the City's next Water Utility Manager at Pay Band 16, Rate 5 providing a salary of $103,475.28. ATTACHMENTS: 1. Resume 2. Letter of Engagement 3. 2018 Management, Professional, 4. Job Description Confidential & Fiduciary Salary Plan FISCAL IMPACTS (Include Budgeted Amount): The salary and benefits for this position are fully funded within the City's Water Utility budget. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to authorize the engagement of Cami Apfelbeck as the City's Water Utility Manager at Pay Band 16, Rate 5 of the Management, Professional, Confidential & Fiduciary Salary Plan. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/02/2018 Cami A. Apfelbeck 19684 Rosebud Place NE, Poulsbo, WA 98370 360-930-8033 (hm); 206-660-4221 (cell) CdZI lOCc (!',C0111cast.Iltit Professional Summary Dynamic leader and water resources manager with a proven record of generating and building relationships, administering complex programs, managing projects from concept to completion, and coaching individuals to success. Excel at communicating effectively, making critical decisions, and optimizing resources to achieve organizational goals. Fourteen years of experience in surface water, groundwater, and stormwater management. Specialties ■ Servant leadership • Water resources management • Community building • Environmental compliance • Conflict management ■ Efficiency and process improvement ■ Team motivation • Organization Experience Supervision and Leadership ➢ Currently supervise water resources technicians, interns, and volunteers staffing two comprehensive monitoring programs and numerous special projects. ➢ As former Chair and current Local Government Representative on the Puget Sound Stormwater Work Group, implement the regional stormwater monitoring program, providing oversight of the $10.6 million expenditure of local municipal permittee funding. ➢ As Chief Union Steward, lead a team of six union representatives in resolving disputes through good -faith collaboration with management, balancing the needs of the organization and 72 represented members. Program Administration & Project Management ➢ Manage Bainbridge Island's surface and groundwater monitoring programs and numerous special projects. ➢ Liaise and coordinate resource protection with federal, state, and local governments, public health and conservation districts, tribes, and community groups. )0- Set budgets, prioritize and strategize work plans, and delegate work tasks to optimize resources. ➢ Present program reviews and cost/benefit analyses to policymakers, citizen advisory committees, and the general public. Environmental Compliance Monitoring, Assessment, and Reporting ➢ Oversee monitoring and assessment of physical, chemical, and biological water quality and quantity of surface water, stormwater, and groundwater to include monitoring design; sample collection; quality assurance, control, and validation; application of criteria and standards; and reporting. ➢ Present status and trends of water quality and quantity conditions in support of the water utility's Water System Plan and city-wide planning efforts to include Comprehensive Plan and Critical Areas Ordinance updates and special area planning. ➢ Prepare technical comments on state water quality assessments. Specifically, technical comments on the draft Sinclair and Dyes Inlets Fecal Coliform Bacteria TMDL resulted in modifications to load and wasteload allocations and reduced regulatory burden. Public Education and Outreach ➢ Host water quality monitoring demonstrations, table special events, and participate in regional and national education and outreach to include WaterPAK's Kitsap Water Festival and membership in EPA's WaterSense program. ➢ Develop citizen self-help guides and FAQ's. Employment History Water Resources Specialist City of Bainbridge Island 2009 - Present Water Quality and Flow Monitoring Program Manager Groundwater Management Program Manager Water Quality Engineering Tech City of Bainbridge Island 2008-2009 Water Quality Engineering Tech Snohomish County 2002-2008 Groundwater Intern Snohomish County 2001-2002 Teaching/Research Assistant Univ. of Wash. -Earth and Space Sciences 1999-2002 Security, Fire and Safety, Parsons Savannah Services Company 1995-1996 HR and Records Coordinator United States Army 1985-1987 Education M.S. Geological Sciences University of Washington -Seattle 2002 B.S. Geological Sciences University of North Carolina -Chapel Hill 1999 Additional Training Confined space, Hazwoper, CPR/AED/First Aid, Incident Command System for Public Works, Leadership Kitsap Awards/Achievements Op White Award in Geology for outstanding senior (1999), Outstanding Geology Student (1996), Special Act or Service Awards (1991 and 1992), Army Commendation Medal (1987) July 19, 2018 Cami Apfelbeck 19684 Rosebud Place NE Poulsbo, WA 98370 RE: Letter of Engagement Dear Cam!: It is with great pleasure that I confirm your appointment to the position of Water Utilities Manager. This letter will serve to confirm your employment with the City of Bremerton as follows: Position: Water Utilities Manager Department: Public Works & Utilities Effective Date: August 20, 2018 (Probable Start Date) Rate of Pay: $4311.47 Semi -Monthly (Band 16, Rate 5) — Pending City Council Approval Appointment/Removal: Director of Public Works & Utilities Supervisor: Chal Martin, Director of Public Works and Utilities Benefits: Pursuant to BMC Chapter 2.50 Vacation: 15 days (120 hours) Public Works & Utilities 1 100 Oyster Bay Ave. N., Bremerton, WA 98312 * Phone (360) 473-5920 * Fax (360) 473-5360 Working for and with our residents to establish Bremerton as Puget Sound's most beautiful and livable waterfront clot Please sign indicating your acceptance of our offer of employment as outlined above, and return to Leighann Denton In our Human Resources Office at 345 6th Street, Suite 100 Bremerton, WA 98337. Sincerely, �r Chal Martin Director of Public Works & Utilities cc: Leighann Denton, Human Resources Analyst II ACCEPTANCE OF JOB OFFER: I, Cam] Apfelbeck, hereby accept the appointment to position of Water Utilities Manager, under the terms and conditions as set forth in this Letter of Engagement. SIGNATUR • Cami Apfelbeck Date Public Works & Utilities 1 100 Oyster Bay Ave. N„ Bremerton, WA 98312 * Phone (360) 473-5920 * Fax (360) 473-5360 Working for and with our residents to establish Bremerton as Puget Sound's most beautiful and livable waterfront city! Z O W 2 W w m LL O U 00 Q N a J a a V LL J a H Z W _o LL Z O L) a z O W LL O w IL F= z W 2 W a Z a m.... 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O ~ G F- G F O O O O O O J O .7 r OO O J r O r O O J¢ z z m z z Z 2 z f z z i Z z R z z 2 z Z z O w z w O w z w O w z w O w z w O w z w O w z w w Q 0. 0¢ w 2 to ¢ N 2 0¢ N 2 (n ¢ (n 2 fo ¢ N z O r u w W LLIJ J O w � v a z � Z z ZZ y F N F U N N N w a a a N J O ¢ W WW W ❑ J J J ❑ W O Q M N a m CITY Of SALARY: OPENING DATE: CLOSING DATE: GENERAL FUNCTION: CITY OF BREMERTON invites applications for the position of: Water Utility Manager $7,621.46 - $9,285.98 Monthly 06/15/18 07/09/18 05:00 PM Plans, directs, and implements Bremerton's water resource, supply, water operations and treatment, and water quality control programs for its large unfiltered surface water and groundwater system. This includes dam operation and safety; system operations including disinfection and UV treatment, pump stations, reservoirs, and automatic control valves; and stormwater permit compliance. Ensures water planning and environmental monitoring programs are in compliance with the Safe Drinking Water Act and Clean Water Act. Manages technical personnel in the Water Resources Division. REPRESENTATIVE ESSENTIAL DUTIES AND RESPONSIBILITIES: (Note — this list is intended only to illustrate the various types of work that may be performed. The omission of specific statements does not exclude them from the position.) Coordinates utility activities with state and local agencies for drinking water supply management, water rights, dam safety, comprehensive planning, and stormwater. Provides monitoring and technical support for CSO reduction, biosolids, and other city environmental programs. Implements, tracks, reports, and coordinates with regulatory agencies federal and state drinking water quality, water treatment, dam safety, and water system planning regulations to effectively provide a safe and reliable drinking water supply and public health protection. Assigned as the Operator in Responsible Charge of the two Bremerton Water Systems and the Rocky Point Water District with the Washington Department of Health. Prepares and implements watershed control program. Prepares annual watershed report for Department of Health. Reviews construction, forestry, forest practice, access, or other activities proposed to occur or which routinely occur within the City's Union River watershed. Selects, supervises, motivates, evaluates, and coaches employees; also participates in the progressive discipline process. Prepares and efficiently manages division budget, capital projects, professional services agreements, and grants relating to Water Resources Division responsibilities for water and stormwater. Implements, tracks, reports, and coordinates with regulatory agencies state water rights regulations and water supply projects to ensure current and future adequate water supplies. Implements, tracks, and reports for other environmental and safety programs such as dam safety, biosolids, stormwater, chemical hazard, and Endangered Species Act. Develops, provides, presents, and evaluates mandated water quality, conservation, and stormwater public education programs and materials; prepares and delivers public presentations, and answers customer water quality questions. Prepares Water System Plan, Watershed Control Plan, monitoring plans, and other planning documents. Represents the City on regional water planning committees such as watershed planning, ESA issues, the Washington Utilities Coordinating Council, WaterPAK, etc. Maintains confidentiality of work-related issues, client records, and City information. Other Duties — Regular attendance is an essential requirement. — Performs leadership team duties as necessary and appropriate during a city-wide or regional emergency in accordance with Incident Command principles and practices. — Performs related work as assigned and/or required. QUALIFYING EDUCATION AND EXPERIENCE (MINIMUM REQUIREMENTS): A four year college degree with emphasis in environmental science, water resources, chemistry, engineering, public health and/or public administration and five (5) years working experience which includes water system management, water supply operations and treatment, environmental monitoring, laboratory analysis, technical writing, and regulatory reporting. One year experience supervising technical personnel. Valid Washington State Water Distribution Manager 4 and Cross Connection Control Specialist Certifications are required, or ability to obtain this certification or a WDM 4 OIT within one (1) year of hire. Must maintain this certification through ongoing professional growth requirements. Some special certifications may be required to be obtained after hire or specified by the appointing authority. A Valid Washington State Driver's license is required. Other relevant education and experience may be accepted if that education and experience demonstrates the knowledge, skill, and ability required to perform the essential duties and responsibilities listed above. Knowledge of: • Principles, practices, and methods of water resource management, water treatment, water distribution, dam safety, limnology, watersheds, and water quality management. • Safe Drinking Water Act, Clean Water Act, Dam Safety regulations and their associated federal and state regulations. • Water supply and water rights management. • Emergency response procedures. • Communication methods and social marketing. • Physical, chemical, and biological sampling and laboratory analysis. • Water, wastewater, and biosolids treatment and management. • Supervisory coaching and discipline principals, and conflict management methods. • Safe working methods, including fall protection, confined spaces, flagging, and chemical handling. • Statistics, algebra, and complex mathematical formulas. Ability to: • Apply professional water resource and quality control principles. • Interpret and apply complex environmental policy issues. • Plan, prioritize, and evaluate program goals and progress. • Communicate effectively both verbally and in writing to both professional and lay -person audiences. • Evaluate environmental data, trends, and statistics and make water quality and planning decisions based on evaluation of this data. • Motivate employees and instill public service priority in staff. • Develop water resource planning to provide a high degree of environmental and public health protection • Use complex spreadsheet, data base, and Human -Machine Interface software. • Effectively testify in court on technical issues. • Manage projects effectively and within budget. • Get along with others and be an effective team member and team leader. EXAMINATION PROCESS: Applicants can apply on-line at htti)://www.ci.bremerton.wa.us/169/Current-3obs, or application packets may be obtained from the Human Resources Department, Cobweb, or by calling (360) 473-5241. Required Application materials: City application, personal resume, and responses to supplemental questions are required. Incomplete application packets will not be considered. Required application materials must be returned to the Human Resources Office by 5:00 p.m. on the closing date. The City of Bremerton is NOT responsible for errors of any kind with faxed or e-mailed application packets. Original signature is required on paper application forms. It is the responsibility of the applicant to carefully list all pertinent experience and training. Appraisal of Experience and Education/Training: Application packets will be evaluated on the basis of information provided. Applicant's education, training, and experience will be assessed. Oral Examination: A panel will evaluate the applicant's training, experience, and ability to perform the job. As part of the oral examination process applicants will participate in a written exam. NOTE TO APPLICANTS WITH DISABILITIES: Applicants with disabilities who will need special accommodation for examination must advise Human Resources no later than one (1) week prior to the scheduled examination so that appropriate arrangements can be made. (360) 473-5347. LEGAL and REGULATORY EMPLOYMENT CONDITIONS Fair Labor Standards Act: The position qualifies for exemption from the Fair Labor Standards Act minimum wage and overtime provisions under the Act's Administrative Employees exemptions. Representation: The classification is exempt from the bargaining unit pursuant to the Recognition Article of the current labor agreement between the City of Bremerton and the Teamsters Local 589. Civil Service: The classification is not included in the City's Civil Service System. Appointment and Removal Authority: The position is filled by appointment by the Department Head. Removal is by action of the Department Head in conformance with Human Resources Policies. This classification specification does not constitute an employment agreement between the City and employee. It is subject to change by the City, with the approval of Human Resources, as the needs of the City and requirements change. The City of Bremerton is proud to be an Equal Employment Opportunity Employer committed to a diverse workforce. APPLICATIONS MAY BE FILED ONLINE AT: htto://www.ci.bremerton.wa.us 345 6th Street, Suite 100 Bremerton, WA 98337 360-473-5347 humanresourcesCcbci.bremerton.wa.us Water Utility Manager Supplemental Questionnaire Position #2018-00021 WATER UTILITY MANAGER LD * 1. Describe your experience supervising technical personnel and methods you use to motivate your team. * 2. Describe a recent project you managed and the steps you took to meet expectations. * 3. Describe a public education/outreach effort you were involved in, the key messages you used, and how you evaluated your effectiveness. * Required Question AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Professional Services Agreement with Varsity Facility Services for Janitorial Services at six (6) City Facilities A3 Study Session Date: July 25, 2018 COUNCIL MEETING Date: Auaust 01. 2018 Department: PW&U Presenter: Wayne Hamilton Phone: (360) 473-5207 SUMMARY: The Janitorial Services Contract of Public Works & Utilities has expired. The City is seeking to accept the Washington State Contract for Janitorial Services to obtain the best available pricing for these services. The Washington State Contract is with Varsity Facility Services, Auburn Washington. The Department requests approval of the Janitorial Services Contract No. 00508 for one year from August 6, 2018 to August 5, 2019. In addition, requests authority for the Public Works Director to authorize four additional one year extensions, for a total of five one year extensions. ATTACHMENTS: 1) Professional Services Agreement for Janitorial Services; 2) State of Washington Janitorial Services Contract Summary Sheet; 3) Exhibit B Municipal Courts Facility Work Order for Janitorial Services (typical of all other City location janitorial work contracts) FISCAL IMPACTS (Include Budgeted Amount): Funds are budgeted for the current budget year and would be budgeted for the remaining term of the contract. $66,490.367 annual cost with potential increases based on prevailing wage and minimum wage increases. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Professional Services Agreement with Varsity Facility Services for City Facilities Janitorial Services; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action PROFESSIONAL SERVICES AGREEMENT For Janitorial Services The City of Bremerton ("City") and Varsity Facility Services ("Vendor"), referred to collectively as the "Parties," enter into the following Agreement for professional services: I. Scope: The Vendor agrees to perform janitorial services at six City locations more specifically described in Exhibits A through F (collectively, "Scope of Work"), attached hereto and incorporated herein, including any attachments thereto. The Scope of Work may be modified only pursuant to Section VII.H of this Agreement. If the Scope of Work provides for unspecified additional services such services shall only be performed upon the express written request of the City. Vendor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices in effect at the time such services are performed. II. Term: The City and the Vendor agree that work will begin on the tasks described in the Scope of Work on August 6th, 2018. This Agreement shall terminate one year from the date of execution, and may be renewed for four (4) additional one-year terms upon written authorization by the City's Director of Public Works and Utilities. These additional terms may be exercised at the sole discretion of the City with thirty (30) days written notice to the Vendor. The Parties agree that the work is to be completed as provided for in the work schedule included in the Scope of Work; provided however, that additional time shall be granted by the City for excusable delays or extra work as provided for in Section IX.A of this Agreement. III. Compensation: In consideration of the services provided pursuant to this Agreement, the City shall pay Vendor in the amount set forth in the Scope of Work and Exhibit G — "Supply Costs," which is attached hereto and incorporated herein. Vendor's charges and bills shall conform to the fee schedule and tasks included in the Scope of Work and Exhibit G. The cost of paper and cleaning supplies and any other costs to be reimbursed by City are set forth in Exhibit G. The Vendor shall submit regular billing statements and the City shall promptly process payment. PROVIDED, HOWEVER, the City reserves the right to prioritize scoped work and accelerate and/or delay work tasks under the time frame set forth in Section II herein. Vendor shall not perform work beyond the Scope of Work, nor shall be compensated for such work, unless the Scope of Work or amount of compensation is modified pursuant to this Agreement. Vendor shall only be compensated for additional services if requested pursuant to Section I and, if not otherwise provided, such compensation shall be in accordance with the terms contained in the Scope of Work. If a billing statement does not conform to this Agreement, the City may withhold payment until the statement is brought into compliance. Such withholding does not relieve Vendor of its obligations under this Agreement. Page 1 of 7 Bremerton/KB S-VFS Janitorial Services Rev. 03/2018 Vendor supervisor costs are not separately identified in the Scope of Work and will be absorbed by Vendor, at no additional cost to the City. IV. Relationship of Parties: Vendor represents that it is skilled in the matters addressed in the Scope of Work and is performing independent functions and responsibilities within its field of expertise. Vendor and its personnel are independent consultants and not employees of the City. Vendor and its personnel have no authority to bind the City or to control the City's employees and other vendors. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub -contractors of the Vendor. Vendor will be solely and entirely responsible for its acts and for the acts of Vendor's agents, employees, representatives and sub -contractors during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent vendors to perform the same or similar work. As an independent consultant, Vendor is responsible for its own management. The City's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over Vendor or its personnel. As an independent consultant, Vendor is responsible for payment of all taxes and licensing fees necessary to perform its obligations under this Agreement. These taxes and fees include but are not limited to State industrial insurance, Business & Occupation, State professional licensing, and City business licensing. If any taxes or fees due the City have been declared delinquent, the City may withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Vendor. V. Indemnification: A. Vendor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the performance of this Agreement except for that portion of the injuries and damages caused by the City's sole negligence, unless Vendor is conducting work pursuant to Subsection B below. The City's review or acceptance of any of the work when completed shall not be grounds to avoid any of these covenants of indemnification. B. Architects, Engineers and Any Other Professional Listed In and Performing Services Defined in RCW 4.24.115. Should a court of competent jurisdiction determine that Vendor's services provided pursuant to this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Vendor and the City, its officers, officials, employees, agents and volunteers, the Vendor's liability hereunder shall be only to the extent of the Vendor's negligence. Page 2 of 7 Bremerton/KB S -V FS Janitorial Services Rev. 03/2018 IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE VENDOR'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this Agreement. VI. Insurance: The Vendor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, employees, sub -consultants or sub -contractors. Before beginning work on the project described in this Agreement, the Vendor shall provide a Certificate of Insurance evidencing: 1. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and 2. Coninlercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations/broad form property damage; explosion, collapse and underground (XCU) if applicable; and 3. E -<cess Liability insurance with limits not less than 1,000,000 limit per occurrence and aggregate. 4. Workers Compensation insurance as statutorily required by the Industrial Insurance Act of the State of Washington, Title 51, Revised Code of Washington and employer's liability with limits not less than $1,000,000. Any payment of deductible or self-insured retention shall be the sole responsibility of the Vendor. All required policies shall be provided on an "occurrence" basis except professional liability insurance (if required), which may be provided on a "claims -made" basis. The City shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Vendor and a copy of an endorsement that is acceptable to the City, which names the City as an additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all the required insurance policies and endorsements. The City further reserves the right to reject any unacceptable policies and/or endorsements. Page 3 of 7 Bremerton/KBS-VFS Janitorial Services Rev. 03/2018 The Vendor's Commercial General Liability insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. The Vendor's insurance shall be primary and non-contributory insurance as respects the City and shall contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. It shall be an affirmative obligation upon Vendor to advise the City's Risk Manager by fax at (360) 473-5161, or by certified mail, return receipt requested to City of Bremerton, Attn: Risk Management, 345 6th Street, Suite 100, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement. The City also reserves its unqualified right to require at any time and for any reason, proof of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence of coverage. VII. General Conditions: A. Work Performed at Vendor's Risk: Vendor shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and sub -contractors in the performance of the work hereunder and shall utilize all protection necessary for that purpose. All work shall be done at Vendor's own risk, and Vendor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. B. Entire Agreement: This Agreement and its Exhibits constitutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. C. Severabili� Should any part of this Agreement be found void, the balance of the Agreement shall remain in full force and effect. D. Modification: This Agreement may only be modified by written instrument signed by both Parties. E. Written Notices: All communications regarding this Agreement shall be sent to the Parties at the addresses listed below by registered or l st class mail, or by personal service, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. Page 4 of 7 Bremerton/KB S-VFS Janitorial Services Rev. 03/2018 Notices to be sent to: Notices to be sent to: CITY: VENDOR: Attn: Attn: City of Bremerton 3456 th Street, Suite 100 Bremerton, WA 98337 F. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. G. Non -Waiver of Breach: The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect. H. Compliance with Laws: Vendor shall comply with all applicable Federal, State, and local laws in performing its obligations under this Agreement. I. Choice of Law and Venue: This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. J. Attorneys' Fees: In the event of litigation to enforce any of the terms or provisions herein, each Party shall pay all its own costs and attorney's fees. K. Assignment: Any assignment of this Agreement by the Vendor without the written consent of the City shall be void. VIII. Nondiscrimination: Vendor shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, disability, or sexual orientation except for employment actions based on bona fide occupational qualification. IX. Termination: This Agreement shall remain in force until completion and acceptance of the services, terminated by written instrument upon mutual consent, or by the City of Bremerton for convenience. This Agreement may be immediately terminated for cause by a Parry if the other Party substantially fails to perform through no fault of the terminating Party, and the non- performing Party does not commence correction of the failure of performance within thirty (30) days of the terminating Party's sending notice to the non-performing Party. Any Notice by Vendor shall include a report showing the status of all items listed in the Scope of Work current through the termination date. If the City receives reimbursement by any federal, state, or other source for work described in Section I herein, and that funding is withdrawn, reduced or limited in any way, or Page 5 of 7 Bremerton/KBS-VFS Janitorial Services Rev. 03/2018 the project is cancelled or substantially reduced after the execution date of this Agreement and prior to the completion of the work, the City may summarily terminate this Agreement. A. Excusable Delays: The right of Vendor to proceed shall not be terminated nor shall Vendor be charged with liquidated damages for any delays in the completion of the work due to: 1) any acts of the federal government in controlling, restricting, or requisitioning materials, equipment, tools, or labor by reason of war, national defense, or other national emergency; 2) any acts of the City, its consultants, or other public agencies causing such delay; and 3) causes not reasonably foreseeable by the Parties at the time of the execution of the Agreement that are beyond the control and without the fault or negligence of the Vendor, including, but not restricted to, acts of God, fires, floods, strikes, or weather of unusual severity. PROVIDED, HOWEVER, that the Vendor must promptly notify the City within ten (10) calendar days in writing of the cause of the delay. If, on the basis of the facts and the terms of this Agreement, the delay is properly excusable, the City shall, in writing, extend the time for completing the work for a period of time commensurate with the period of excusable delay. B. Rightspon Termination: In the event of termination, the City shall pay for all services performed by the Vendor to the effective date of termination, as described on a final invoice submitted to the City. After termination, the City may take possession of all records and data within the Vendor's possession pertaining to this project which may be used by the City without restriction. Any such use not related to the project which Vendor was contracted to perform shall be without liability or legal exposure to the Vendor. X. Suspension & Debarment. For contracts involving Federal funding, Vendor hereby certifies, by signing this Agreement, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. Vendor shall provide immediate written notice to the City if at any time it learns that it is or has become ineligible for certification. Should Vendor enter into a covered transaction with another firm, Vendor agrees by signing this Agreement that it will verify that the firm with whom it intends to do business is not debarred, suspended, ineligible, excluded or disqualified. Xl. Prevailing Wages. Vendor shall file a "Statement of Intent to Pay Prevailing Wages," with the State of Washington Department of Labor & Industries prior to commencing the Contract work. Vendor shall pay prevailing wages and comply with Chapter 39.12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate provisions. The latest prevailing wage rate revision issued by the Department of Labor and Industries is attached. The rates are those in effect on the date when bids are required to be submitted. The Parties recognize the potential for future variance in applicable prevailing wages. After the first year of this Agreement, the wages Vendor must pay its employees shall be altered annually according to the most recently promulgated increases in prevailing wages. The City shall bear the cost of the wage increases. Page 6 of 7 Bremerton/KBS-VFS Janitorial Services Rev. 03/2018 IN WITNESS WHEREOF, the Parties below have executed this Agreement. ,..1_lva CITY OF BREMERTON By:, - Print Name: Its: Date: APPROVED AS TO FORM: By:. - Bremerton City Attorney VENDOR: By: Print Name: Its: Date: ATTEST: By: City Clerk R:\Legal\Legal\Forms\FORMS ON COBWEBTrofessional Services Agreement Rev. 03 2018.docx Page 7 of 7 Bremerton/KBS-VFS Janitorial Services Rev. 03/2018 Public Works and Utilities Department 100 Oyster Bay Ave. N. • Bremerton, WA 98312 • (360) 473-5920 • FAX (360) 473-5360 State of Washington Janitorial Services Contract Summary ■■■■■a■■raa■awa■■a■■■■■■■■■■■a■■a■■■■■a■a■■a■■■■■■■r■■■■■■■■■■■■■a■■■■aa■■■■■aa This service is currently required at 6 City facilities and properties. The City decided that joining the State of Washington for janitorial services was beneficial. The benefits of using WA State Contract #00508 are as follows: • State developing call -for -bids requirements • State handling all research of bidder qualifications • State handling all proper posting and advertising requirements • State handling all bid evaluations, cost analysis and reference checks • State handling future city requests to add services, extensions to the services contract and correction of poor performance issues. All very important benefits that will save City staff time and funds associated with these tasks. Also, other users of this State service have reported a 15% to 20% cost savings in the bidding/award process. City facilities and properties were shown on May 1, 2018 to ten (10) janitorial services contractors, which were approved and provided by the State of Washington. All proposals, requirements, references and wage information was reviewed by the State of Washington on May 25, 2018. The successful state approved bidder was Varsity Facility Services; Auburn, Washington. Previous janitorial services provider was A-1 Performance, Inc., Aberdeen, Washington Term: August 6, 2018 to August 5, 2019; One (1) year with additional extensions available with State contract pricing and benefits, with potential increases based on Washington State Prevailing Wage and Minimum Wage Requirements. City facilities and properties to be covered with the new proposed janitorial services are: A) BKAT Facility, B) Municipal Courts Building, C) Fire Station #1 Administration, D) Police Complex, E) Public Works & Utilities/Equipment Services Buildings and F) SOG Facility. Paper products and cleaning supplies will be provided by the Janitorial Services provider and reimbursed by the City. These costs are also budgeted for the current budget year and would be budgeted for the remaining term of the contract. Attachments for reference: proposed agenda bill, Exhibit `B" Municipal Courts Work Contract, (typical of all) and Professional Services Agreement, other information available upon request. EXHIBIT B COURTS Washington State Department of Enterprise Services Agency Name: City of Bremerton (Courts) I Work Request Numter: 42170 Agency # or ID: 21801 County: I Kttsap Contract Life: 2 yrs. Original Start Date: 1 -Jul -18 P Building Type: Other Estimated Square Feet: 8000 # of Floors: 92 Approved working hours Monday -Friday bpm to 7am Street Address: Street Address: City & Zip Point of contact Phone: Fax: Email: Work to be performed at: 1550 Park Ave. Bremerton WA 98337 awn i lams ® 1473-5242 360 473-5262 dawn. williams(@ci. bremerton.w Client Contract Administrator: 100 Oyster Bay Ave. N. Bremerton WA 98311 IChris Moftner 3601473-2316 360 473-5360 Chris. mottnerCa ci. bremertan. wa Send billina information to: 100 Oyster Bay Ave. N. Bremerton WA 198311 ac es Dept. 3601473-2316 360 473.5360 ch ris. mottner(cr�ci. bremerton.wa. us Page 1 Work Request Template July 2013 % of weighting applied to evaluation categories: Mandatory Site Visit Date; 1 -May -2018 Pricing 60% References: 3iQ% Standardized Q&As: Q% Bids must be submitted on or Site Visit Time: 1:00 PM before the date of >>> 8 -May -2018 I »RFQQ Bid Submissions (by Vendors) should bel QESCPRINHeaIHumServQdes.wa.gov I electronically sent to this email address > Click on link to identify proper prevailing wage>>> L&I janitorial prevailing wa es by job class by count 'Note: The purchasing agency may update the Work Contract based on minimum wage increases and will update the Work Contract to reflect the LNI prevailing wage changes each applicable year. Bidder to identify hourly labor rate»> SUperVlBor Janitor Shampooer Waxer Window Washer 11.5 11.5 11.5 13.22 NOTE: Janitorial work contracts are "performance based" contracts, and vendors must submit quotes that assure the ability to fully service all noted tasks in accordance with this agency's performance demands (which will be discussed at the site visit.) The amount of minutes bid by vendors will be calculated to measure reasonableness and quality assurance in accordance with RCW 39.26.160(2)(c) and the master contract 00508; janitorial service personnel are required to cumulatively work the amount of minutes submitted in the RFQQ and Work Contract. Page 2 Work Request Template July 2013 x I Dust, wipe, spot clean, and remove fingerprints to include: (Daily/Weekly) a) x Reception area tables, counters, chairs, and windows b) [] Copy room counters & tables c) [�X Lunchroom counters and tables d) []x General hallway and corridor walls e) File cabinets f) X Glass doors g) 0 Elevator walls and hand rails h) ❑X Stairwell walls and hand rails i) Qx Spot clean all smudges, stains and spills as needed on any flooring or open surFace j) Remove cobwebs k) spot clean all interior glass I) M) n) itional Instructions: s l weekly 1LJLXJf x j'L2L!l xJLJ"1 SOTWTFS supeMeu(e) Jadhx(s) shan"WIS) W-0) wk0arVw*11) Total MINUTES required to successfully complete this task pe 15 job class per event �5n_J Check box to activate section: II II 2 Additional Dust, wipe, spat clean an. . . . .. ...............d disinfe....... . ..........ct (Daily ! Weekl------- y C) 'r,r e) 0 g) 0 h) Frequency:® x s r.1 superv60) Jan" @) shampww(s) WMW(s) WindowWn*s) Total MINUTES required to successfully complete this task pe job class per event >>' Page 3 Work Request Template July 2013 i # Check box to activate section: x 3 Dust, wipe, spot clean and remove finger prints to include a) I- X Horizontal surfaces & moldings b) D Horizontal & vertical blinds c) x Picture Frames d) ® Cloth panels e) 0 HVAC vents, grills, and recesses f) � Ceiling vents, grills, and recesses 9) n Horizontal & vertical blinds Frequency: x a Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov pec supwwsw(s) Jsodw(s) 9hwnpoow(s) Wulf(s) WindowWashw(s) Total MINUTES required to successfully complete this task pe 120 job class per event »> i Check box to activate section: E14 Clean.I Wipe Chrome FixtUres to Include: a) Drinking Fountains b) Elevators c) Faucets d) Other e) 0 Other f) Q Other g) 100ther Frequency: x a Week X x X x x Fq 5 M T W R F S i 9upervlWv) Janlmr(s) 9hwnpoow(s) Waw(s) Wnd=Wesher(s) 1 Total MINUTES required to successfully complete this task per 10 job class per event >> l I Check box to activate section: Page 4 Work Request Template July 2013 5 Ern tv Dally Trash f Recycle bins from the fallowing areas: a) x All rooms and open areas. b)[]x General open areas, hallways, and corridors c) Q The following Conference Rooms: d) xJ Dining / lunchroom areas e) ®ftittt,en areas f) 0 Reception Area g) F7X Replace trash liners whenever stained, soiled, torn, and/or removed. h) Employee cubicle areas it n Other mpty smaller trash / recycle Items into large receptacles at specified location :I designated day(s), take large receptacles to the specified area. Bupwvlsor(s) J -Ms) Shempoow(s) Wsur(s) Wndolwwww(s) Total MINUTES required to successfully complete this task pe 45 job class per event >> i Check box to activate section: M-16 Ent , way and Outside Clean-up: a) XJ Sweep within 10 feet of each entrance. b) Sweep sidewalks along the front of building c) [] Remove trash and debris from outside parking lot d) Q Empty all entrance ash trays e) X Empty outside trash cans into proper receptacle f) Othe: g) F Other h) Other i) Other j) a Other Frequency: x11 a WeekI x I x I x I x I x S M T W T F S .1- SupwAlw(s) Janllw(s) Shampooer(d) Wmtw(s) WlndmvWsft(s) Total MINUTES required to successfully complete this task pe 10 job class per event »> i Page 5 Work Request Template July 2013 4 Check box to activate section: a) b) 0 ;.1:: _-i-1 i 11—:- 114! 1! C) d) EJ e) g) h) S 61 T VV T F S &P-W(s) Jan"s) Shempww(s) W-13) Wn" Wahw(s) Minutes for Day Porter Services should be accordance with set arnountof hours for the servicl I I I -* Check box to activate section ,,,GeneralMiscellaneous--,�dditional Genea Cleaning: a) P.-Iposifion all conference room and reception area chairs b) 0 Replace light bulbs & light tubes as needed c) X7 Stock, and monitor all janitorial supplies d) Other e) Other 1) Other g) Other h) Other Other j) 1[:]10ther Frequency: a WeekI I I —L 11 S M T W T F S BUW-($) imute) Shampo*$) Wn"06) WndawWndwJv) Total MINUTES required to successfully complete this task pe 30 job class per event >>> —J ...................... I ............ ....................................... ............... ....... . . . .............................. . ............ . . . ...................... - . . ........ .......... -1- .............. Page 6 Work Request Template July 2013 Santtize an tonets, urma)s, wasn basins, etc. Sweep, dry mop and/or damp mop and disinfect floors Clean mirrors, mirror frames, faucets, exposed pipes, dispensers, hand driers, counters, and door handles Fill all paper towel dispensers, toilet paper dispensers, toilet seat cover dispensers, and soap dispensers. Plunge and/or snake toilets as needed. :?Ther Other Other Floor cleaning for bathroom is included as part of general floor cleaning duties Frequency: x a Week x I X X X I x S M T W T F S SupeMsor(a) Janitor(s) Shampooer(s) W -11(s) WlndowWashegs) Total MINUTES required to successfully complete this task pe 60 job class per event >>> Check box to activate section: U 10 Additional Restroom Cleaning and Disinfecting: a) ani d!sinf�c±toilet—slalf�cors 2nd ;:s!Is b) 0 ind �iisiafect sho;,rer�rsas�gd-fixtures C) [] d) [] e) fl S M T W T F S Supervlsor(a) Jan'i 1s) Shampooer(s) Waxe(s) WtndawWasher(s) Total MINUTES required to successfully complete this task pe job class per event >>, Page 7 Work Request Template July 2013 * Check box to activate section* 11 General Kitchen Cieaning: a) Q Clean and disinfect all counters b)nx_ Clean and disinfect outside of all cabinets c) Clean and disinfect outside of all appliances d) Q Clean and disinfect sink and fixtures e) Q Clean and disinfect tables and counters in lunch room I eating area. f) pry mop 1 wet mop to remove all spills and stains on floor g) 0 Clean inside of following appliances: h) Fx7 Reposition kitchen furniture in an orderly manner i) [] Other j) F1 Other Frequency:x a Week x x Ix I I 11 S M T W T F S Supervimr(s) Janbr(s) shampowr(s) Waxer(s) Window Wesher(e) Total MINUTES required to successfully complete this task per 35 job class per event »> i Check box to activate section: 12 Additional Kitchen Cleaning: a) [] :lean -inside ofmicrowa,i-rs b) an�Fsida ofafrigeralor s) C) 0 _; d) [� e) fl � h) ar j) S M T W T F S Supervisors) Janihx(e) shampooer(s) Waw(s) IWndowWasher(s) Total MINUTES required to successfully complete this task pe job class per event }3 Page 8 Work Request Template July 2013 I # Check box to activate section: 13 Other Specific Rooms As Follows: a) n b) jV C) d) [� e) Q f) g) h) i) j) S M T W T F S Supervlaor(s) Janitor(s) shampooer($) waxer(:) Windowwasher(s) Total MINUTES required to successfully complete this task pe job class per event »? Check box to activate section: 14 Vacuum High Traffic Carpeted Areas to Include: (Daily/ Weekly) Estimated # of o ® ...................... ...... ... ..... ............. ...................... ... ........ _... square Seet ....... t a)FF�7X Reception Area ) b) General open areas, hallways and corridors 3 c) The following Conference rooms: d) Elevator Floor e) Employee cubicle areas f) 0 Additional Rooms &tor areas as noted in Special Instructions space below. g) F7x Spot clean all carpeted areas when needed h) r Private Offices i) 0 Court Rooms 1 and 2 D ln�The above st7yare foctaae is estimated. Vendors should confirm actual square footage at site visit Special instructions' Frequency:�5 x a Week x l _x x _l_x x - 1 S M T W T F 5 supsm-r(s) Janh*s) shamp000s) waxer(e) WndowWeshsr(s) Total MINUTES required to successfully complete this task pe 60 job class per event >>a Page 9 Work Request Template July 2013 Check box to activate section: 15 Vacuum Low Traffic Carpeted Areas to Include: .................... ................ I ............. . ..... ...................................... . ...... . ... . .. ............... ....... ...... ................... ................ . ......... ...... a) i I oyee-CZ ubide -A Fe 22 b) C) d) e) f) F Cher g) h) F i) S M T W T F SUPKVISM(s) Janitw(e) Shampooer(s) Waxer(s) WndowWa0wts) Total MINUTES required to successfully complete this task per job class per event >-I ........................................................................................ .................................... I ........ ........................ ................ ............... .. ....... ......... . .......... ............................. Check box to activate section: 16 Clean resilient floors to include: (Daily I Weekly) Estimated # of ..............................I........... square feet:..... a) = Sweep floors b) FX7 ID ry mop c) E] wet mop as needed d) Oflier e) Other Other g) F--] Other h) U01her Spacial Instructions; Surface cleaning as noted above should be done on all non carpeted floors unless specified otherwise. Wet mop as needed Frequency:X a Week X X X X X S M T W T F S Supervisor(s) JWtX(5) Shampqwfll Waxer(3) Wndawftshw(s) Total MINUTES required to successfully complete this task pe 45 job class per event >4 I I I I . ..... ............................ ............................... ........ ...................................................... . ............................ ..................................... . ................. . .......................... Page 10 Work Request Template July 2013 Check box to activate section: �17 Clean, Strip & Wax Resilient floors: (Monthly / Annually) a) � r Ud':'lU;.CIISi:(`ICi-OIIGr15..............................................._...................r...............................,.... b) 4,ax-iLhe areaancll0spesifiad -1:eli.•'r:--- w?E-a!so sp -jalli 1sI,,ucti:)ns ts c) II i; •i rpeled-,';cors d) fle) [] 1, h) 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec suparvisor(s) Janllor(s) Shampooer(s) W-03) Window Wash*s) i 4 Total MINUTES required to successfully complete this task per I I job class per event »> Check box to activate section: Ell " 18 ShamCarpet As follows: ..._..�...........poo ........��........................................... - _. a) :a:pel2d-ar2,s b) r aptic, _, a c) [7 ; ei',access-areas a!oi?y-halktays<and-coFr;dors e) a4 .,•. r f) [� Ic;;ea i;tltiaE-areas g) h) [] Rugs I) F_� eF j) 1=1 ' `;;eF Mar Apr May Jun Jul Aug Sep Oct Sup-isor(a) Janllor(a) shampooer(:) Wsav(e) WindowWasher(s) Total MINUTES required to successfully complete this task per job class per event »> Page 11 Work Request Template July 2013 i Check box to activate section: F119 Clean inside of interior./exterior windows a) [] . b) I C) [] d) 0 e) [� g) Q h) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Supervisors) Jan"s) Shampooe4s) Waxers) WlndowWasher(s) Total MINUTES required to successfully complete this task pc job class per event >y� i ♦ Check box to activate section; E:[20 Clean (ground level) exterior windows a> )C) d) e) Q � 0 g) Cj h) Cj 1) f I I I I I I f I I I Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Supervf*s) Jan"3) 8hampow5) Waxm(s) UndowWasher(s) Total MINUTES required to successfully complete this task pe job class per event »* i Page 12 Work Request Template July 2013 # Check box to activate section ©21 Clean (non -ground level) exterior windows a) b) ❑ C) d) ❑ e) ❑ -.i Jan Feb Mar Apr May Jun Jul Aug Sep act Nov pec SupwArior(s) Janlbr(s) shampoam(a) Wasar(s) window Washar(a) Total MINUTES required to successfully complete this task per jobclass per event = ��---------------------------------- ------ ........... . ........... ..... .... ............... ... ... .......... ... ........... ­ .................... . .................. Check box to activate section: �x 22 Clean additional interior windows: (Sizes to be determined at site visit) a) Lx J Entry way Windows b) ❑ Private office windows c) ❑] Conference room windows d) Reception area windows e) ❑ Other f) ❑ Other g) ❑ Uther h) [] Othet i) ❑ Other j) ❑ Other Special instructions: Note, this task is fora full window cleaning. Spot wiping of smudges, fingerprints, etc., should come under above sections 1 - 3 Frequency: 1 1 i x i a Week S M T W T F s i supervlsor(s) Janibr(s) shamp000r(a) Marta) Window Waahar(s) Total MINUTES required to successfully complete this task pe 15 job class per event a5 Page 13 Work Request Template July 2013 Miscellaneous and Other Types of Cleaning Check box to activate section: 23 Other., - a) b) ❑ C) ❑ d) F e) ❑ F g) ❑ h) ,her S M T W T F S supelviws) JaWbDr(G) Shampmer(s) w0eqX) Wncbw WaAw(s) F Total MINUTES required to successfully complete this task perl job class per event >,>1 ................................................... . ..................................................................................... - ........ . . ............................. ............ . ... ...... Check box to activate section: Othet a) b) c) d) ❑ e) F g) 17 h) F 0 -;her LD S M T W T F S supems"(s) Janbr(z) Shampww(s) waxw(e) Windwwas*8) Total MINUTES required to successfully complete this task Pe job class per event "'I I ............... ...... I ............. ........... .................... ..... ...... .............. ......... ...... .......... .......... .......... Page 14 Work Request Template July 2013 i Check box to activate section- a) U b) [] C) 0 d) �] _ e) [] fl 0 g) Q ❑ )) 1) T F sup -l -(s) Jadfir(s) Shampooer(s) Waxsr(s) WindowWasher(s) Total MINUTES required to successfully complete this task per job class per event's? € ...................... ................ _........... ............... ,....................... ......,,..,.,.,.,,,..,,,,.................... .......................... ._....... _................ ........... ....... ._.......... .__.......; ♦ Check box to activate section: - c) u d) [] e) 0 fl 0 g) h) 5 M T W T F S Supenbor(e) Janbr(e) 9hempoosr(e) Waxer(s) Window WsAor(s) Total MINUTES required to successfully complete this task pe job class per event » Page 15 Work Request Template July 2013 # Check box to activate section: I� he a) b) - c) 0 d) a e) g)- H'' h) 1) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Supervisors) JaniMs) shampooer(s) Waxer(s) Window Washer(:) Total MINUTES required to successfully complete this task pe per event job class »? As Needed Cleaning: As needed cleaning should only be checked if the agency/entity can provide enough upfront information on each cleaning task for the vendor to calculate the proper amount of minutes to bid to perform the function. =128 Out of the ordinary cleanup following special event or office function or minor construction Superrlsu(s) Janbr(s) shampoosr(s) Waxer(s) WhrdowWasher(s) Total MINUTES required to successfully complete this task pe -F job class per event ,> 9 Emergency water damage cleanup Supervisor(s) Jan"s) Shampooer(s) Wsxer(s) WirdowWasher(s) Total MINUTES required to successfully complete this task )pe job class per event --1 Page 16 Work Request Template July 2013 F=77130 Other (i.e. Chemical Spills) Supervleor(s) Janbr(s) Shampooer(e) Weser(e) Window Washers) Total MINUTES required to successfully complete this task pe job class per event — F=131 Other (i.e. Biological Spills) Supervisors) Janbr(s) Shampow(s) waw(s) Win"Washer(s) Total MINUTES required to successfully complete this task per job class per event -> =32 Other (i.e. Bodily Fluids) Supervlsors) Janbga) Shampww(s) Waxer(B) Window Washers) Total MINUTES required to successfully complete this task per job class per event >> �33 Other Supervisors) Jandar(s) Shampooer(s) Wesers) WmdowWasher(s) Total MINUTES required to successfully complete this task per job class per event >» ®3`f Other SupaMsar(e) Janitor(s) Shampww(s) Waxers) WindowWsshers) Total MINUTES required to successfully complete this task pe job class per event >7} Page 17 Work Request Template July 2013 Absent a compelling business reason State Agencies are to utilize state contract to purchase PAPER SUPPLIES 3~ Flat Monthly Fee to supply PAPER SUPPLIES (i.e. paper towels, toilet paper & covers) AT VENDORS ACTUAL COST All monthly invoices must be accompanied with a cost break down and supporting documentation to validate vendors actual costs are accurately reflected Bidder to propose Monthly Flat Service Fee -:—b mv to Identify (for market research purposes only) the estimated monthly costs the client should expect to budgetfor PAPER SUPPLIES Supply Environmentally Preferred? Provided by Provided by Agency Vendor Toilet Paper ❑ ❑ X❑ ❑ Deicer Paper Towels ❑ Liquid Soap Toilet Seat Covers� ❑ Ix ❑ Floor Care Products L. I X Other (please specify) ❑ I ❑ Garbage Bags X ❑ 0 Glass Cleaner X ❑' ❑ KI ❑ ❑ Absent a compelling business reason State Agencies are to utilize state contract to purchase CLEANING SUPPLIES ❑ 36 Flat Monthly Fee to provide all necessary CLEANING SUPPLIES AT VENDORS ACTUAL COST All monthly invoices must be accompanied with a cost break down and supporting documentation to validate vendor's actual costs are accurately reflected Bidder to propose Monthly Flat Service Fee a>>Q.Q{} !�—Bidder to Identify (for market research purposes only) the estimated monthly costs the client should expect to budget for CLEANING SUPPLIES Supply Environmentally Provided by Provided by Preferred? Agency Vendor Light Bulbs ❑ Deicer ❑ ❑ Liquid Soap X Ix Floor Care Products X ❑ I Garbage Bags X ❑ 0 Glass Cleaner X ❑' KI Restroom Disinfectants &Cleaners Trash Can Liners X ^ f Other (please specify) ❑ ❑ ❑ ❑ ❑ ❑ Page 18 Work Request Template July 2013 Client Questionnaire must be filled out and submitted with RFQQ. Click here too en and fill out Client Questions! Prompt Payment Discount (PPD)M% (Maximum amount attributable to Bid Score is 5%) NOTE: A PPD % net 30 days will be applied to the bidders bid prices and thereby impact the bidders score. Total Amount of Annual Minutes/hours Bid for this project: 75,620 Minutes $14,493.83 1,260.3 Hours IF Vendor wish to pay a wage other than prevailing wage, type in the new wage below. NOTE; The contracting agency/entity may request verification of wages paid to employees. Paying wages less than prevailing wage or less than submitted in the RFQQ could be grounds for breach of any future work contract. Janitor Shampoo Waxer 9V1""''" Note: IF wages are reduced below prevailing wage Washer level Bidder must submit a written declaration identifying how bidder is exempt from paying prevailing wage. Bidder Labor Cost/Percentage multiplier >>> Enter Monthly Added Fee The labor cost multiplier provides a mark-up to cover Vendor's non -labor related expenses and added profit margin. It can be applied as a flat Enter Annual Added Fee annual amount, a monthly amount, and/or as an additional percentage increase to the overall labor costs. Choose one, two, or all three multiplier formats you wish to use and type the proper amount in the Enter % increase to Labor Costs correct box. 1 35% Total Per Unit"As Needed Cleaning" Labor Cost $0.00 -Excluded fromAnnuaJContrad Amount Flat Monthly Fee for providing Janitorial Products: As noted above (§33 and §34)>>> $0.00 Prompt Payment Discount Bid Evaluation Credit>>> $0.00 -Excluded from Annual Contrad Amount Annual Total Labor Cost Adjustment (from above calculations) >>> $5,072.84 Total Bid Evaluation Price >>> $19,566.68 Total Projected Annual Contract Price (Pre-tax)»> $19,566.63 Price per month (Pre-tax) $1,630.56 VENDORS USE PRE-TAX PRICE PER QUARTER & AGENCY # OR ID TO REPORT 00508 QUARTERLY SALES —>— —. Email your completed RFQQ Worksheet response to: DESCPRMHealHumServ@des.wa.gov Average Price per Day (Pre-tax) $53.61 Price per Quarter (Pre-tax) $4,891.67 Agency #IID 21801 Bid submitted by: VARSITY FACILITY SERVI; Bid responses must be received no later than 2:00 PM Tuesday, May 8, 2018 Late submissions will not be considered for any reason Page 19 Work Request Template July 2013 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Purchase of 12.5% Bulk Sodium Hypochlorite Solution from for the Westside Wastewater Treatment Plant Ul Study Session Date: July 25, 2018 COUNCIL MEETING Date: Auaust 01. 2018 Department: Presenter: Phone: PW&U/WWTP Pat Coxon (360) 473-5448 SUMMARY: Three proposals were received in response to a request from the City for furnishing 12.5% bulk sodium hypochlorite solution to the Westside WWTP. HASA, Inc., Longview, WA submitted the lowest responsive proposal for Low Salt, sodium hypochlorite at $0.96/gallon delivered, which includes freight and taxes. The proposal will have firm pricing for a one year term, from the time the proposal agreement is signed. ATTACHMENTS: Sodium Hypochlorite proposals from HASA Inc., JCI Jones Chemicals Inc. and Northstar Chemical. FISCAL IMPACTS (Include Budgeted Amount): These purchases are budgeted through the WWTP Operating Supplies budget of $540,000. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the proposal to purchase bulk Low Salt 12.5% sodium hypochlorite solution for a period of one year from HASA, Inc. at a cost of $0.96 per gallon delivered; and authorize the Wastewater Manager to make these purchases on an as needed basis. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action Larry Willman From: Cindy Yost <cyost@hasapool.com> Sent: Wednesday, June 13, 2018 8:04 PM To: Larry Willman Cc: Ryan Bennett; HASA Bids; Arlen Proctor Subject: sodium hypo - pricing Attachments: Template - SDS - 12.5% Sodium Hypochlorite. pdf; Template - Spec Sheet - Longview Standard Bleach Spec Rev -.doc.pdf; Template - Spec Sheet - Low Salt - 12 5% Na0CI - Rev C.pdf La rry, Hasa would like to submit the following pricing for your sodium hypochlorite requirement. 12.5%- Filtered Sodium Hypochlorite $0.93 p/gal, FOB Bremerton 12.5%- Filtered, Low Salt, Sodium Hypochlorite $0.96 p/gal, FOB Bremerton Both prices are effective from July 1, 2018 through June 30, 2019. We only ship full truck load quantities (5000 gal) so if you need product at the odor control stations we would bring a full truck load to Bremerton, drop the required amount at those locations and the balance of the load at the main plant. The p/gal price is the same as above but there is a $75.00 drop charge for any drops after the first one. Cindy Yost Sales HASA, Inc PO Box 1173 3401 Industrial Way, Gate 10, Area 42 Longview, VVA .9863; Cell Phone: (360) 957-0938 Customer Service: (360) 578-9300 Larry Willman From: Michelle Trammell <mtrammell@jcichem.com> Sent: Friday, June 15, 2018 12:05 PM To: Larry Willman Cc: Patric Coxon; Patricia Pod; James Groh Subject: 2018-2019 Chemical Proposals for City of Bremerton WWTP - JCI Jones Proposal Attachments: Caustic -50 -Caustic 50% SDS - Chemtrade.pdf; JCI Sunny Sol 150.pdf Importance: High Hi Larry, JCI Jones Chemicals, Inc. is pleased to bid the following for 2018-2019 Chemical Proposals for the City of Bremerton WWTP: 12.5% Sodium Hypochlorite (4800 gal deliveries): $0.9265/gal 50% Membrane Caustic Soda (1000 gal minimum delivery): $3.82/gal Both Prices includes sales tax, freight and any hazardous fees. Please note these bid prices are for the Wastewater Location ONLY at 1600 Oyster Bay Ave S., Bremerton, WA 98312. I've attached a SDS for both products as requested. Let me know if you have any questions. We appreciate the opportunity to work with the City of Bremerton. Thank You, M i,c.�Traaw*we u Office Manager & Sales Coordinator JCI Jones Chemicals, Inc. 1919 Marine View Drive Tacoma, WA 98422 (253) 274 - 0104/ph (253) 274-0733/fax mtrammelL@ ichem.com --This message (including any attachments) contain confidential information for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying or distribution of this message, or the taking of any action based on it is strictly prohibited... Northst'�'Cl?emlcal June 7, 2018 Larry Willman City of Bremerton, WWTP 1600 Oyster Bay Ave S Bremerton, WA 98312 Dear Larry, Thank you for the opportunity to quote on your 2018-2019 chemical requirements. Our pricing will be as follows: City of Bremerton Various Well Sites Product Delivery Size UOM Price Sodium Bisulfite 38% Gallon $2.33 Sodium Hypochlorite 12.5% Large Bulk Mini Bulk - - more than 2,000 gallons less than 2,000 gallons Gallon Gallon $1.70 $2.32 Sodium Hypochlorite 12.5% Sodium Hypochlorite 12.5% - Low Salt Large Bulk - more than 2,000 gallons Gallon $1.93 Sodium Hypochlorite 12.5% - Low Salt Mini Bulk - less than 2,000 gallons Gallon $4.96 Sodium Hydroxide 50% Large Bulk - more than 2,000 gallons Gallon $3.23 Sodium Hydroxide 509/. Mini Bulk - less than 2,000 gallons Gallon $4.17 The above prices will be firm for the agreement year. The above prices include 9% sales tax. SDSs for all three products are attached. Please let us know if you have any questions and again, thank you for the opportunity. Best Regards, j" e -17e3 e ,k Julie DeBellis Northstar Chemical Sales Administrator 503-625-3770 jdebellis@northstarchemical.com 14200 SW Tualatin Sherwood Rd / Sherwood, OR 97140 / 503-625-3770 NorthstarChemlca/ Com SUBJECT: Interagency Agreement with Washington State Department of Natural Resources for Wildland Fire Protection AGENDA BILL CITY OF BREMERTON CITY COUNCIL A5 Study Session Date: July 11, 2018 COUNCIL MEETING Date: July 18, 2018 Department: Presenter: Fire David Schmitt, Chief Phone: (360) 473-5381 SUMMARY: This agreement is between the City of Bremerton and the Washington State Department of Natural Resources (DNR), South Puget Sound Region, for wildland firefighting support. DNR agrees to reimburse the city for expenditures associated with personnel or equipment for responding to wildfire assignments. ATTACHMENTS: Washington Department of Natural Resources Interagency Agreement Updated FISCAL IMPACTS (Include Budgeted Amount): Temporary financial impact while awaiting reimbursement from DNR STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Department of Natural Resources Interagency Agreement with the City of Bremerton; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/02/2018 PSH{NGT 4 b � 3 � 0 OF NATURp'� WILDFIRE INTERAGENCY AGREEMENT WITH CITY OF BRENIERTON Agreement No. IAA- 93-097532 This Agreement is between the City of Bremerton, referred to as the CONTRACTOR and the Washington State Department of Natural Resources, South Puget Sound Region, referred to as DNR. DNR falls under authority of RCW Chapter 43.30 of Washington State, Department of Natural Resources. DNR and the CONTRACTOR enter into this Agreement under Chapter 39.34, Interlocal Cooperation Act. The purpose of this Agreement is for the CONTRACTOR to make available to reimburse the CONTRACTOR for costs associated with time or other reimbursable expenditures during related wildfire training or as outlined for responding to wildfire assignments. IT IS MUTUALLY AGREED THAT: 1.01 Statement of Work. The CONTRACTOR shall furnish the necessary personnel and otherwise do all things necessary for or incidental to performing work as set forth in Attachment A — Statement of Work. 2.01 Period of Performance. The period of performance of this Agreement shall begin on July 23, 2018 or last signature date, whichever is later, and end on July 23, 2023 unless terminated sooner as provided herein. 3.01 Payment. Pay for services shall be based on the rates and terms described in Attachment A- Statement of Work and Attachment B — Payment Requirements. 4.01 Billing Procedures. The CONTRACTOR shall submit invoices within 30 business days of the CONTRACTOR's ending payroll period. Payment to the CONTRACTOR for approved and completed work will be made by warrant or account transfer within 30 days of receiving the invoice. When the contract expires, any claim for payment not already made shall be submitted within 30 days after the expiration date or the end of the fiscal year, whichever is earlier. DNR IAA Agreement No. 93-097532 Page 1 of 7 5.01 Records Maintenance. The CONTRACTOR shall maintain books, records, documents and other evidence, to sufficiently document all direct and indirect costs incurred by the CONTRACTOR in providing the services. These records shall be available for inspection, review, or audit by personnel of the DNR, other personnel authorized by the DNR, the Office of the State Auditor, and federal officials as authorized by law. The CONTRACTOR shall keep all books, records, documents, and other material relevant to this Agreement for six years after Agreement expiration. The Office of the State Auditor, federal auditors, and any persons authorized by the parties shall have full access to and the right to examine any of these materials during this period. Records and other documents in any medium furnished by one party to this Agreement to the other party will remain the property of the furnishing party, unless otherwise agreed. The receiving party will not disclose this material to any third parties without first notifying the furnishing party and giving it a reasonable opportunity to respond. Each party will use reasonable security procedures and protections to assure that records and documents provided by the other party are not erroneously disclosed to third parties. 6.01 Rights to Data. Unless otherwise agreed, data originating from this Agreement shall be `works for hire' as defined by as defined by Title 17 U.S.C., Section 101 and shall be owned by the DNR. Data shall include, but not be limited to, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and/or sound reproductions. Ownership includes the right to use, copyright, patent, register and the ability to transfer these rights. 7.01 Independent Capacity. The employees or agents of each party who are engaged in performing 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. 8.01 Amendments. This Agreement may be amended by mutual agreement of the parties. Amendments shall be in writing and signed by personnel authorized to bind each of the parties. 9.01 Termination for Convenience. Either party may terminate this Agreement upon 30 calendar days' prior written notice to the other party. If this Agreement is 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. 10.01 Termination for Cause. If for any cause either party does not fulfill in a timely and proper manner its obligations under this Agreement, or if either party violates any of the terms and conditions, the aggrieved party will give the other party written notice of the failure or violation. The aggrieved party will give the other party 15 working days to correct the violation or failure. If the failure or violation is not corrected within 15 days, the aggrieved party may immediately terminate this Agreement by notifying the other party in writing. 11.01 Disputes. If a dispute arises, each party will make a good faith effort to resolve issues at the lowest possible level in their respective agencies. If they cannot resolve an issue, they will elevate the issue within their respective chains of command to resolve it. DNR IAA Agreement No. 93-097532 Page 2 of 7 In the event that a dispute arises under this Agreement, it shall be determined by a Dispute Board in the following manner: Each party to this Agreement shall appoint one member to the Dispute Board. The members so appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall evaluate the facts, Agreement terms, applicable statutes and rules, and make a determination of the dispute. The determination of the Dispute Board shall be final and binding on both parties. The cost of resolution will be borne as allocated by the Dispute Board. Alternatively, the parties may pursue a third party dispute resolution as the parties mutually agree to in writing. 12.01 Governance. This contract is entered into 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. If there is 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: (1) Applicable State and federal statutes and rules; (2) Attachment A - Statement of Work; (3) Attachment B — Payment Requirements; (4) Any other provisions of the Agreement, including materials incorporated by reference 13.01 Assignment. The work to be provided under this Agreement and any claim arising from this Agreement cannot be assigned or delegated in whole or in part by either party, without the express prior written consent of the other party. Neither party shall unreasonably withhold consent. 14.01 Waiver. A party that fails to exercise its rights under this Agreement is not precluded from subsequently exercising its rights. A party's rights may only be waived through a written amendment to this Agreement. 15.01 Severability. The provisions of this Agreement are severable. If any provision of this Agreement or any provision of any document incorporated by reference should be held invalid, the other provisions of this Agreement without the invalid provision remain valid. 16.01 Insurances. The State of Washington, including all its agencies and departments, is self- insured for all exposures to tort liability, general liability, property damage liability and vehicle liability, as provided in statute, but only as respects the negligence of State. 17.01 Indemnification. To the fullest extent permitted by law, CONTRACTOR shall indemnify, defend, and hold harmless DNR and employees of DNR, from and against all claims for injuries or death arising out of or resulting from the negligence of CONTRACTOR or the negligence of CONTRACTOR's agents and employees including but not limited to claims arising from CONTRACTOR's employees. "Claim," as used in this contract, means any DNR IAA Agreement No. 93-097532 Page 3 of 7 financial loss, claim, suit, action, damage, or expense, including but not limited to attorney's fees, attributable for bodily injury, sickness, disease, or death, or injury to or destruction of tangible property including loss of use resulting therefrom. DNR shall not require the City to indemnify, defend, and hold harmless DNR (1) for claims that arise out of the negligence of DNR and its officers and employees or (2) for claims that arise out of the DNR's or its officer's or employees' proportionate share of any concurrent negligence. CONTRACTOR waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless State and its agencies, officials, agents or employees. 18.01 Complete Agreement in Writing. This Agreement contains all the terms and conditions agreed upon by the parties. No other understanding, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties. 19.01 Contract Management. The Project Coordinator for each of the parties shall be the contact person for this Agreement. All communications and billings will be sent to the project coordinator. 20.01 Project Coordinators. (1) The Project Coordinator for the CONTRACTOR is David Schmitt, Telephone Number 360-473-5380. (2) The Project Manager for DNR is Jane Potter, Telephone Number 360-802-7030. DNR IAA Agreement No. 93-097532 Page 4 of 7 By signature below, the Agencies certify that the individuals listed in this document, as representatives of the Agencies, are authorized to act in their respective areas for matters related to this instrument. IN WITNESS WHEREOF, the parties have executed this Agreement. CONTRACTOR STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES Signature Grey Wheeler Name Mayor Title Signature Date Signature Date David Schmitt Scott Sargent Name Name Fire Chief South Puget Sound Region Manager Title Title 911 Park Ave 950 Farman Ave No. Bremerton, WA 98337 Enumclaw, WA 98022 Address Address 360-473-5380 360-825-1631 Telephone Telephone Signature Roger Lubovich Name City Attorney Title Signature Name Interim City Clerk Title DNR 1AA Agreement No. 93-097532 Page 5 of 7 Attachment A STATEMENT OF WORK DNR agrees to the following: 1. Status the employee in the Resource Ordering Status System (ROSS). 2. Dispatch the employee to assignments as need arises. 3. Provide employee with valid Incident Qualification Card (red card) upon completion of required training stating current National Wildfire Coordinating Group (NWCG) qualifications, and adhere to qualifications and standards described in PMS 310-1. The CONTRACTOR agrees to the following: 1. Ensure that the employee will be available and ready to respond when called by DNR. (The employee will receive a dispatch by receiving a phone call and ROSS resource order prior to accepting or traveling to the assignment. The employee must have a valid Incident Qualification card (red card). 2. Provide DNR with the employee's loaded base rate (salaries and benefits), overtime rate, and regular work schedule. In the event that the employee's base rate is adjusted, the CONTRACTOR, is required to provide DNR with the updated rate prior to submitting invoices at the updated rate. 3. Provide billing on the CONTRACTOR's letterhead as outlined in Attachment B. DNR IAA Agreement No. 93-097532 Page 6 of 7 Attachment B PAYMENT REQUIREMENTS Each invoice voucher submitted to the DNR by the CONTRACTOR will clearly reference DNR IAA- 93-097532 The CONTRACTOR will be reimbursed according to the employee's actual salaries and benefits. The billing is required to be on agency letterhead and shall include: a. Original Emergency Fire Time Report (OF -288); backup documentation for the hourly wage rate (regular and OT) for personnel hours on the OF -288; b. Travel costs (meals, lodging not provided by the incident) documented with detailed receipts not to exceed state per diem rates. C. Shift ticket documenting mileage to/from incident as well as mileage incurred on the incident signed by the incident supervisor to be reimbursed at the state per diem rates. d. Copy of Resource Order card. Bills shall be sent to: South Puget Sound Region Attention: Dispatch 950 Farman Ave No. Enumclaw, WA 98022 DNR IAA Agreement No. 93-097532 Page 7 of 7 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Public Hearings (2) on Telecommunication Tower Option and Lease Agreement with Vertical Bridge, LLC for Forest Ridge Park Study Session Date: July 25, 2018 COUNCIL MEETING Date: Auaust 1 & 15. 2018 Department: Presenter: Parks & Recreation Jeff Elevado Phone: (360)473-5428 SUMMARY: The City was contacted by a T -Mobile Site Acquisition representative in late 2016 relative to locating a telecommunication tower on Parks and Recreation property in Forest Ridge Park near the existing Public Works water tanks. The proposal includes construction of a 150 foot monopole and antenna array with accompanying equipment buildings. The option was later acquired by Vertical Bridge Development, LLC. The City's Legal and Parks & Recreation Departments have been in negotiations with the contractor to finalize the tower option and lease agreement that is presented here. The proposal has been presented at several Parks and Recreation Commission public meetings. ATTACHMENTS: 1) Telecommunication Tower Option and Lease Agreement; 2) Fifo Networks Report; 3) Bremerton Parks & Recreation Commission Advisory Report FISCAL IMPACTS (Include Budgeted Amount): Base Rent Income revenue of $1,750 per month ($21,000 annually) and a $5,250 one-time payment. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑x Public Hearing RECOMMENDED MOTION: August 1 — Public Comment only... August 15 — Move to approve the Telecommunication Tower Option and Lease Agreement with Vertical Bridge Development, LLC and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action City: Tenant: The City of Bremerton Vertical Bridge Development, LLC 345 6th Street, Suite 100 750 Park of Commerce Drive, Suite 200 Bremerton, WA 98337 Boca Raton, FL 33487 Site #: US -WA -5107 Site Name: Forest Ridge OPTION AND LEASE AGREEMENT THIS OPTION AND LEASE AGREEMENT (this "Agreement") is made this day of , 2018 (the "Effective Date"), by and between the City of Bremerton, a Washington municipal corporation (which acquired the portion of the Property in the East half of the Southwest quarter of the Southeast quarter as the City of Charleston), hereinafter the "City," whose address is 345 6th Street, Suite 100, Bremerton, WA 98337, and Vertical Bridge Development, LLC, a Delaware limited liability company, hereinafter, "Tenant," whose address is 750 Park of Commerce Drive, Suite 200, Boca Raton, FL 33487. WHEREAS, the City owns certain real property located at 3100 1st Street, Bremerton, WA 98337 (APN: 152401-4-021-2007) in the County of Kitsap, in the state of Washington, that is commonly known as Forest Ridge Park and that is more particularly described and/or depicted in Exhibit 1 attached hereto (the "Property'); and WHEREAS, the Tenant desires to lease from City a certain portion of the Property measuring approximately 40' x 40' (approximately 1,600 square feet) (the "Premises"), which Premises is more particularly described and/or depicted in Exhibit 2 attached hereto, for the erection of a communications tower. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree: 1. OPTION TO LEASE. (a) City grants to Tenant the exclusive option to lease the Premises. (b) From and after the date of this Agreement as set forth above for the time period set forth below (the "Option Period"), and at any time during the Term (defined below) with advance notice to the City, Tenant and its agents, engineers, surveyors and other representatives will have the right to enter upon the Property to inspect, examine, conduct soil borings, drainage testing, material sampling, and other geological or engineering tests or studies of the Property (collectively, the "Tests"), to apply for and obtain licenses, permits, approvals, or other relief required of or deemed necessary or appropriate at Tenant's sole discretion for its use of the Premises and include, without limitation, applications for zoning variances, zoning ordinances, amendments, special use permits, and construction permits (collectively, the "Government Approvals"), initiate the ordering and/or scheduling of necessary utilities, and otherwise to do those things on the Property that are necessary to determine the physical condition of the Property, the environmental history of the Property, City's title to the Property and the feasibility or suitability of the Property for 1 Tenant's Permitted Use, all at Tenant's expense. Tenant will not be liable to City or any third party on account of any pre-existing defect or condition on or with respect to the Property, whether or not such defect or condition is disclosed by Tenant's inspection. Tenant shall obtain City approval prior to any physical disturbance of the Property, and such approval shall not be unreasonably withheld, delayed or conditioned. Tenant will restore the Property to its condition as it existed at the commencement of the Option Period (as defined below), reasonable wear and tear and casualty not caused by Tenant excepted. In addition, Tenant shall indemnify, defend and hold City harmless from and against any and all injury, loss, damage or claims arising directly out of Tenant's Tests. (c) In consideration of City granting Tenant the Option Period, Tenant agrees to pay City the sum of Five Hundred Dollars ($500.00) within thirty (30) business days of the full execution of this Agreement. The Option Period will be for a term of one (1) year from the Effective Date. (d) During the Option Period, Tenant may commence the Initial Term of this Agreement by notifying City in writing. If Tenant commences the Initial Term, then City leases the Premises to the Tenant subject to the terms and conditions of this Agreement. If Tenant does not commence the lease portion of this Agreement during the Option Period, this Agreement will terminate and the parties will have no further liability to each other. 2. TERM. (a) The lease portion and Term shall commence on the first day of the month in which Tenant begins construction if such construction commences on or before the 15th day of the month, or the first day of the month after Tenant commences construction if such construction commences after the 15th day of the month (the "Commencement Date"). Unless extended or sooner terminated as herein provided, the initial term shall be for a period of five (5) years following the Commencement Date ("Initial Term"). (b) Tenant shall have the option to extend the Term of this Agreement for four (4) successive terms of five (5) years each (each a "Renewal Term"). Each Renewal Term shall commence automatically, unless Tenant delivers notice to City of its intent not to renew, such notice to be delivered not less than sixty (60) days prior to the end of the then -current Term. For purposes of this Agreement, "Term" shall mean the Initial Term and any applicable Renewal Term(s). 3. RENT. (a) Base rent. Tenant shall pay City beginning at Commencement Date a monthly rental payment of One Thousand Seven Hundred Fifty Dollars ($1,750.00) ("Rent"), at the address set forth above on or before the fifth (5th) day of each calendar month in advance, together with such month's leasehold excise tax in accordance with Section 4 below. Rent will be prorated for any partial month. The initial Rent payment will be forwarded by Tenant to City within thirty (30) days from Commencement Date. 2 The Rent shall increase by one and one half percent (1'/2%) annually on each anniversary of the Commencement Date. Any payments received after the due date and after any applicable cure period shall include a late payment penalty of two percent (2%) of the monthly rental fee for each day or part thereof past the due date. (b) One -Time Payment. In addition to the commencement of Rent as set forth above, Tenant will pay to City a one-time payment of Five Thousand Two Hundred Fifty Dollars ($5,250.00) within sixty (60) days after the Commencement Date, which shall not be a credit toward Rent or any other fee that may be due under this Agreement. There shall be no revenue share fee. However, Tenant's right to sublet, consistent with this Agreement, shall be contingent upon: Tenant furnishing City with a copy of each proposed sublease and City approval thereof, sublessee compliance with this Agreement's requirements to the extent applicable, and the Tenant's continued ownership and control over the tower facility unless otherwise agreed by the City. The City encourages co -location on existing telecommunications facilities and to that end the City agrees not to unreasonably withhold, delay nor condition approval of subleases. (c) Reservation of Space on Tower for City - Additional consideration. (i) At no rent due from City to Tenant nor any reduction in the Rent, City shall be allowed, at City's sole expense, to attach its communication antennas to Tenant's telecommunications tower provided City first obtains Tenant's written consent, with such consent not to be unreasonably withheld. Pursuant to the foregoing, Tenant hereby agrees to reserve on behalf of City a ten foot (10') vertical envelope (360 degrees) at a height of eighty feet (80') to ninety feet (90') with a centerline of eighty-five (85') on Tenant's tower at the Premises in the event Tenant builds a tower on the Premises ("City's Tower Space"). Any equipment installed on City's Tower Space shall not exceed seven thousand and five hundred (7,500) square inches of wind loading capacity. Tenant's approval for said attachments shall be contingent upon determining whether Tenant's tower is properly engineered to accommodate City's antenna system and such transmission shall not result in any impairment or diminution in the quality of Tenant's service. Further, said approval shall be given only after Tenant has reviewed and approved City's engineering plans for said antenna attachments. Approval shall not be unreasonably withheld. Upon written approval by Tenant, said attachments shall be installed, at City sole expense, by qualified licensed contractors and in accordance with Tenant's directives for the method of installment. In addition to the City being responsible for its own installation, the City shall also be responsible for its own utilities and operations and agrees that any ground space required for City's Tower Space shall be outside the Premises. City acknowledges and agrees that Tenant reserves the right to relocate City's antennas at any time(s) to accommodate modifications required for Tenant's future system requirements, provided such relocation shall provide equivalent quality of service after such relocation. (ii) Any reservation of right granted to the City pursuant to this Section is solely limited to City's use only of the ten foot (10') vertical envelope described above and City acknowledges and agrees that the City does not have the right to lease, license, sublease, 3 sublicense, etc. such space on the tower on the Premises to any other party including, without limitation, any wireless communication entity. 4. TAXES. Tenant shall pay any personal property taxes assessed on, or any portion of such taxes attributable to, the communication facility located on the Premises. Tenant agrees to pay the leasehold excise tax on the rent payment pursuant to Chapter 82.29A RCW currently in the amount of 12.84 percent (12.84%) and as may be adjusted pursuant to Chapter 82.29A RCW. The leasehold excise tax applies to revenue sharing of sublessees' rent payments pursuant to Section 3 of this Agreement. Tenant shall be responsible for paying business and occupation, and/or other taxes or licenses which may in the future be assessed as a direct result of the Tenant's operations at the Premises. 5. USE AND INSPECTION. (a) The Premises are being leased for the purpose of erecting, installing, operating and maintaining one (1) radio or communications tower, transmitting and receiving equipment, antennas, dishes, mounting structures, equipment shelters and other supporting structures, and related equipment (the "Facility," or collectively, the "Communication Facilities") and to sublease or license space to subtenants or licensees in accordance with the terms of this Agreement. Tenant may, subject to the foregoing, make any improvement, alteration or modification to the Premises as may be necessary; however, in the event Tenant desires to increase the height of the original Tower or place any Facility on the Tower that will protrude above the height of the Tower, or to add any Facility that protrudes off the side of the Tower in excess of ten feet (10'), Tenant must first obtain City's permission which shall not be unreasonably denied. Tenant must obtain City permission to clear the Premises of any trees, vegetation, or undergrowth which interferes with Tenant's use of the Premises for the intended purposes; City shall not unreasonably deny such clearing. Tenant shall have the exclusive right to install and operate upon the Premises one (1) communications tower, cabinets, equipment, antennas, dishes, fencing, and other accessories related thereto, and to alter, supplement, and/or modify same, pursuant to plans submitted to and approved by City. (b) Tenant agrees to obtain an inspection of its Communication Facilities at a minimum of once every five years by a state -licensed engineer capable of certifying the structural integrity of the facilities (the "Inspection'). The Inspection must be compliant with the inspection procedures set forth in the Telecommunications Industry Association's TIA-222 (G or current revision). Any structural problems must be brought to the attention of the City immediately. Written reports shall be generated for all such Inspections, and Tenant shall retain all reports of all structural inspections — whether required under this Agreement or not for the duration of this Agreement. Tenant shall provide a copy of any inspection report to the City upon request. 6. ACCESS AND UTILITIES. At all times during the Term, Tenant, and its agents, customers, lessees, sublessees and assigns shall have the unrestricted, exclusive right to use, and shall have free access to, the Premises seven (7) days a week, twenty-four (24) hours a day. City for itself, its successors and assigns, hereby grants and conveys unto Tenant, its customers, employees, agents, sublessees, sublicensees, successors and assigns a nonexclusive Easement(s) (defined below) for: (i) ingress and egress, (ii) construction, installation, maintenance, and 4 operation of the Communication Facilities, and (iii) the construction, installation, operation and maintenance of overhead and underground electric and other utility facilities (including wires, poles, cables, conduits and appurtenant equipment), with the right to reconstruct, improve, add to, enlarge, change and remove such facilities, over, across and through the Easement for the benefit of and access to the Premises, subject to the terms and conditions herein set forth. City agrees to cooperate with Tenant's efforts to obtain such utilities and services. If there are utilities already existing on the Premises which serve the Premises, Tenant may utilize such utilities and services to the extent possible. The rights granted to Tenant herein shall also include the right to partially assign its rights hereunder to any public or private utility company or authority to facilitate the uses contemplated herein, and all other rights and privileges reasonably necessary for Tenant's safe and efficient use and enjoyment of the easements for the purposes described above. The Easement(s) are defined as both the access and utility easements as depicted on Exhibit 2. The Easements shall be included in any recorded Memorandum of Lease. The Easements will not be perpetual and shall expire upon the last to occur of (i) expiration or termination of this Agreement, or (ii) removal by Tenant of all its property from the Premises after expiration or early termination of this Agreement. Tenant agrees that City may, at City's expense, relocate the access only portion of the Easement to another location on the Property, provided that (i) City provides Tenant with at least sixty (60) days prior written notice, and (ii) Tenant's resulting access and beneficial use of the Premises is equivalent to that contemplated in this Agreement. 7. EQUIPMENT, FIXTURES AND REMOVAL. Tenant's tower, all improvements, equipment or other property attached to or otherwise brought onto the Premises shall at all times be the personal property of Tenant and/or its subtenants and licensees. Tenant or its customers shall have the right to erect, install, maintain, and operate on the Premises such equipment, structures, fixtures, signs, and personal property in accordance with the terms of this Agreement, and such property shall not be deemed to be part of the Premises, but shall remain the property of Tenant or its customers. Within ninety (90) days after the expiration or earlier termination of this Agreement (the "Removal Period"), Tenant at its sole expense shall remove its improvements and restore the Premises to grade and to its condition prior to this Agreement and shall perform all obligations under this Agreement during the Removal Period, including without limitation, the payment of Rent at the rate in effect upon the expiration or termination of this Agreement. City may allow Tenant, by written agreement, to abandon its property in place, but City shall not be obligated to compensate Tenant for the property or any value derived therefrom. If City does not allow abandonment and Tenant does not remove its property within the Removal Period, Tenant must reimburse City for its reasonable costs in having the property removed and the Premises restored. Tenant understands and agrees that its improvements, equipment and other property shall meet all applicable local, State and Federal code. City may require screening, fencing, and other safety and aesthetic features due to the nature of the Property. In addition, City may limit any future changes (from the original approved installation) to the height and width of the Communication Facilities and all other improvements and modifications to maintain the overall aesthetic of the original design. 5 8. ASSIGNMENTS OR TRANSFERS OF THIS AGREEMENT. City may assign this Agreement only in its entirety and only to a purchaser acquiring fee title to the entire Property, subject to Section 17. As to Tenant, this Agreement maybe sold, assigned or transferred by Tenant without any approval or consent of City to Tenant's lender, principal, affiliates, subsidiaries, subsidiaries of its principal or to any entity which acquires all of or substantially all of Tenant's assets or ownership interests by reasons of merger, acquisition or other business reorganization (a "Pre -Approved Transaction"). As to transfers or assignments that do not constitute a Pre - Approved Transaction, Tenant shall be required to obtain City's prior written consent, which consent shall not be unreasonably conditioned, withheld or delayed and, provided that (i) City is provided an instrument of assumption by an assignee that assumes all of the obligations of Tenant under this Agreement (ii) such assignee owns not less than one thousand (1,000) telecommunications towers, and (iii) assignee pays City any assignment or other fee required under the Bremerton Municipal Code as currently written or hereafter amended, Tenant shall be relieved of all liability hereunder. Tenant shall have the exclusive right to sublease or grant licenses without City's consent to use the radio tower or any other tower or structure or equipment on the Premises, but no such sublease or license shall relieve or release Tenant from its obligations under this Agreement. Further, with respect to Tenant: (a) This Agreement shall not be assigned or transferred in any manner within twelve (12) months after the initial grant of this Agreement, unless otherwise provided. (b) Absent extraordinary and unforeseeable circumstances, no system or integral part of a system shall be assigned or transferred before construction of the telecommunications facility has been completed. (c) Tenant shall provide to City any reasonable information pertaining to any transfer or assignment pursuant to this Section that is requested by City. (d) Any transfer or assignment of this Agreement, system, or integral part of a system not in accordance with the foregoing shall be void and is cause for revocation of this Agreement. 9. TRANSACTIONS AFFECTING CONTROL OF THIS AGREEMENT. Any transactions which singularly or collectively result in a change of fifty percent (50%) or more of the ownership or working control of the Tenant, of the ownership or working control of the telecommunications facility, of the ownership or working control of affiliated entities having ownership or working control of the Tenant or of a telecommunications facility, or of control of the capacity or bandwidth of the Tenant's telecommunication system, facilities or substantial parts thereof, shall be considered an assignment or transfer requiring City approval pursuant to Section 8 hereof. Transactions between affiliated entities are not exempt from City approval. The Tenant shall promptly notify the City prior to any proposed change in, or transfer of, or acquisition by any other party of control of Tenant's company. Every change, transfer, or acquisition of control of a Tenant's company shall cause a review of the proposed transfer. In the event that the City adopts a resolution or other appropriate order denying its consent and such change, transfer or acquisition of control has been effected, the City may cancel this Agreement. Approval shall not be required 6 for mortgaging purposes or if said transfer is from the Tenant to another person or entity controlling, controlled by, or under common control with the Tenant. 10. COVENANTS, WARRANTIES AND REPRESENTATIONS. (a) City warrants and represents that it is the owner in fee simple of the Premises, free and clear of all liens and encumbrances except as to those which may have been disclosed to Tenant, in writing prior to the execution hereof, and that it alone has full right to lease the Premises for the Term set out herein. (b) City shall not do or knowingly permit anything that will interfere with or negate any special use permit or approval pertaining to the Premises or cause any tower on the Premises to be in nonconformance with applicable local, state, or federal laws. City shall cooperate with Tenant in any effort by Tenant to obtain certificates, permits, licenses and other approvals that may be required by any governmental authorities. City agrees to execute any necessary applications, consents or other documents as may be reasonably necessary for Tenant to apply for and obtain the proper zoning approvals required to use and maintain the Premises and the tower site, provided Tenant complies with application, zoning, and all other City department requirements. (c) Tenant shall not generate, release, spill, store, deposit, 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 applicable federal, state, and local laws and regulations ("Hazardous Substances") in, on or about the Premises, the Property or any Easement. To the extent that Tenant must use generators, batteries or vehicles, the obligations of Tenant contained in this Section shall apply to any spill or leakage of fuel, acid, or any other chemical. Tenant shall clean up and restore all affected areas, including testing and abatement for any soil contamination, and shall obtain all applicable permits to so restore the areas, at Tenant's sole expense and as soon as possible but not later than seven (7) days after such spill or leakage. Tenant shall indemnify, defend and hold City, its officers, employees, successors and assigns harmless from any and all debts, liens, claims, liabilities, administrative orders and notices, demands, losses, damages, cleanup costs, response costs, personal injuries, interest, fines, penalties, costs and expenses (including reasonable attorneys' fees and consultants' fees) and all other out-of-pocket expenses arising out of or in any way related to the Release by Tenant, or any of its agents, employees, customers, sublicensees or sublessees, 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 Tenant or any of its agents, employees, customers, sublicensees or sublessees. This Section shall not limit Tenant's liability as set forth in this Agreement. The provisions of this Section shall survive termination or expiration of this Agreement. (d) Tenant shall have access to all utilities required for the operation of the Tenant's improvements on the Premises that are existing on the Property. Tenant will pay for all water, gas, heat, light, power, telephone service, and other utilities furnished to the Premises and used by Tenant, and all other costs and expenses of every kind whatsoever in connection with the use, operation, and maintenance of the Premises by Tenant and all activities conducted thereon by Tenant. 7 (e) Tenant will maintain the Premises in good condition and state of repair. (f) There currently exist no licenses, sublicenses, or other agreements, written or oral, granting to any party or parties the right of use or occupancy of any portion of the Premises; there are no outstanding options or rights of first refusal to purchase the Premises or any portion thereof or interest therein; and there are no parties (other than City) in possession of the Premises. (g) City does not grant, lease, let or demise hereby, but expressly excepts and reserves herefrom, all rights to oil, gas and other minerals in, on or under and that might be produced or mined from the Premises. No drilling or other activity will be undertaken on or beneath the surface of the Premises or Easement to recover any oil, gas or minerals during the Term. Any future oil, gas or mineral lease covering any part of the Premises will be in all respects subordinate and inferior to the rights, privileges, powers, options, immunities, and interests granted to Tenant under the terms of this Agreement provided that such oil, gas or mineral lease(s) do not interfere with Tenant's use of the Premises hereunder. 11. HOLD OVER TENANCY. Should Tenant or any assignee, sublessee or licensee of Tenant hold over the Premises or any part thereof after the expiration of this Agreement, such holdover shall constitute and be construed as a tenancy from month-to-month only, but otherwise upon the same terms and conditions as set forth in this Agreement. 12. GENERAL INDEMNIFICATION. (a) Tenant covenants not to bring suit against the City and hereby agrees to defend, indemnify, and hold harmless the City, its appointed and elected officers, employees, agents and volunteers from and against any and all liability, loss, costs, damage, and expense, including costs and reasonable attorney fees in defense thereof, and including claims by the Tenant's own employees to which the Tenant might otherwise be immune under Title 51 RCW, because of actions, claims or lawsuits for damages resulting from personal or bodily injury, including death at any time resulting therefrom, sustained or alleged to have been sustained by any person or persons, and on account of damage to property, arising or alleged to have arisen directly or indirectly out of or in consequence of the performance of this Agreement, whether such injuries to persons or damage to property is due to the negligence of the Tenant, its agents, employees, representatives or assigns. This provision shall be inapplicable to the extent such damage or injury is judicially found to be caused by the sole negligence of the City. This provision waiving immunity for claims arising out of Title 51 RCW was specifically negotiated by the parties. (b) Tenant assumes the risk of damage to its facilities located in the City's public ways, rights-of-way, easements, and property from activities conducted by the City, its officers, employees, agents, and volunteers. The Tenant releases and waives any and all claims against the City, its officers, employees, agents, and volunteers for damage to or destruction of the Tenant's facilities except to the extent any such damage or destruction is caused by the willful and malicious action of the City, its officers, employees, agents, or volunteers. s (c) Tenant shall not cause mechanic's or materialman's liens to be placed on the Premises and Tenant agrees to indemnify, defend and hold City harmless from any such lien from a party claiming by, through or under Tenant. 13. WAIVERS. EACH PARTY HERETO WAIVES ANY AND ALL CLAIMS AGAINST THE OTHER FOR ANY LOSS, COST, DAMAGE, EXPENSE, INJURY OR OTHER LIABILITY WHICH IS IN THE NATURE OF INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUSINESS LOSS AND BUSINESS INTERRUPTION, WHICH ARE SUFFERED OR INCURRED AS THE RESULT OF, ARISE OUT OF, OR ARE IN ANY WAY CONNECTED TO THE PERFORMANCE OF THE OBLIGATIONS UNDER THIS AGREEMENT. 14. INSURANCE. The Tenant shall, as a condition of this Agreement and prior to beginning any work on the Premises, secure, maintain and provide the City proof of the following liability insurance policies insuring both the Tenant and the City, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers against claims for injuries to persons or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the Tenant: (a) Comprehensive general liability insurance, written on an occurrence basis, with limits not less than: $2,000,000.00 for bodily injury or death to each person; ii. $4,000,000.00 for property damage resulting from any one accident; and iii. $2,000,000.00 for all other types of liability. (b) Automobile liability for owned, non -owned and hired vehicles with a limit of $2,000,000.00 for each person and $2,000,000.00 for each accident; (c) If required by the laws of the State of Washington, worker's compensation within statutory limits and employer's liability insurance with limits of not less than $1,000,000.00; (d) Comprehensive form premises -operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than $4,000,000.00; (e) Tenant's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability; (f) The liability insurance policies required by this Section shall be maintained by the Tenant throughout the Term, and such other period of time during which the Tenant is operating without a lease hereunder, or is engaged in the removal of its telecommunications facilities. The Tenant shall provide an insurance certificate, together with an endorsement designating the City, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds, to the City prior to the commencement of any work or installation of any facilities pursuant to said Agreement. Payment of deductibles and self- insured retentions shall be the sole responsibility of the Tenant. The Tenant's insurance shall be primary insurance as respects the City, its officers, officials, employees, agents, consultants, and volunteers. Any insurance maintained by the City, its officers, officials, employees, consultants, agents, and volunteers shall be in excess of the Tenant's insurance and shall not contribute with it. All insurance policies provided by Tenant shall contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. (g) The City shall be provided thirty (30) days advance notice of cancellation of any coverages required above. Within thirty (30) days after receipt by the City of said notice, and in no event later than fifteen (15) days prior to said cancellation or intent not to renew, the Tenant shall obtain and furnish to the City replacement insurance policies meeting the requirements of this Section. (h) Any insurance required to be provided by Tenant may be provided by a blanket insurance policy covering the Premises and other properties leased or owned by Tenant, provided that such blanket insurance policy complies with all of the other requirements of this Section. 15. REMOVAL BOND. Within thirty (30) days of the Commencement Date, Tenant shall execute a bond in the amount of Thirty Thousand Dollars ($30,000.00) to the benefit of City for use for the removal of the improvements in the event Tenant fails to comply with the removal obligations described above. 16. INTERFERENCE. The Tenant acknowledges that the City may enter into leases with other tenants on the Property for the purposes of transmitting and receiving telecommunication signals. The City, however, is not in any way responsible or liable for any interference with Tenant's use of the Premises which may be caused by the use and operation of any other tenant's equipment, even if caused by new technology. In the event that any other tenant's activities interfere with the Tenant's use of the Property, and such use or operation was not in existence on the date of execution of this Agreement, and the Tenant cannot resolve this interference with the other tenants, the City will, upon written request by Tenant, cause such interfering use to cease. Tenant understands that if its use interferes with a prior tenant, and the interference problem cannot be cured, this Agreement may be terminated by the City. The Tenant shall cooperate with all other tenants to identify the causes of and work towards the resolution of any interference problem. In addition, the Tenant agrees to eliminate any radio or television interference caused to City -owned facilities or surrounding residences at Tenant's own expense and without installation of extra filters on City -owned equipment. Tenant further agrees to accept such interference as may be received from City -operated telecommunications or other City facilities except any City antenna sites placed upon Tenant's facilities. 17. RIGHT OF FIRST REFUSAL. In the event that City determines to sell, transfer, license or otherwise convey any interest, whether fee simple interest, easement interest, leasehold, or otherwise, and whether direct or indirect by way of transfer of ownership interests in City if City is an entity, which interest underlies or affects any or all of the Premises (the "ROFR Property') to any third party, during the Option Period or Term, City shall offer Tenant a right of first refusal to purchase the Premises (or such larger portion of City's property that encompasses the Premises, if applicable) or such interest proposed to be conveyed. City shall provide a copy of any offer to 10 purchase or acquire, or any executed purchase agreement or letter of intent ("Offer"), to Tenant which copy shall include, at a minimum, the purchase or acquisition price and financing terms ("Minimum Terms"). Within thirty (30) days of receipt of such Offer, Tenant shall provide written notice to City of Tenant's election to purchase the ROFR Property on the same Minimum Terms; provided, the closing date shall be no sooner than sixty (60) days after Tenant's purchase election notice. In such event, City agrees to sell the ROFR Property to Tenant subj ect to Tenant's payment of the purchase price and compliance with a purchase and sale agreement to be negotiated in good faith between City and Tenant. If Tenant provides written notice that it does not elect to exercise its rights of first refusal to purchase the ROFR Property, or if Tenant does not provide notice of its election within the thirty (30) day period, Tenant shall be deemed to have waived such right of first refusal only with respect to the Minimum Terms of the Offer presented (and any subsequent Offers shall again be subject to Tenant's continuing right of first refusal hereunder), and City shall be permitted to consummate the sale of the ROFR Property with the same Minimum Terms ("Permitted Sale"). 18. SECURITY. The parties recognize and agree that Tenant shall have the right to safeguard and protect its improvements located upon or within the Premises. Consequently, Tenant may elect, at its expense, to construct enclosures and/or fences to secure its improvements, including the tower(s), shelter(s), and related improvements situated upon the Premises. Tenant may also undertake any other appropriate means to restrict access to its communications towers, shelter(s), and related improvements. All enclosures, fencing and facilities are subject to City approval and must meet City code and concealment requirements, due to the nature of the Property. Such approval shall not be unreasonably withheld. 19. FORCE MAJEURE. The time for performance by City or Tenant of any term, provision, or covenant of this Agreement shall be deemed extended by time lost due to delays resulting from acts of God, strikes, civil riots, floods, material or labor restrictions by governmental authority, and any other cause not within the control of City or Tenant, as the case may be. 20. CONDEMNATION. Notwithstanding any provision of this Agreement to the contrary, in the event of condemnation of the Premises, the City and Tenant shall be entitled to separate awards with respect to the Premises, in the amount determined by the court conducting such condemnation proceedings based upon the City's and Tenant's respective interests in the Premises. If a separate condemnation award is not determined by such court, City shall permit Tenant to participate in the allocation and distribution of the award. In no event shall the condemnation award to City exceed the unimproved value of the Premises, without taking into account the improvements located thereon, and in no event shall this Agreement be terminated or modified (other than an abatement of rent) due to a casualty or condemnation without the prior written consent of Lender (as hereinafter defined). 21. DEFAULT. The failure of Tenant or City to perform any of the covenants of this Agreement shall constitute a default. In addition, City may terminate this Agreement for any of the following reasons: 11 (a) Tenant's construction or operation in the City or in the public ways of the City or upon City property without proper City authorization; (b) Tenant's construction or operation at an unauthorized location; (c) Unauthorized substantial transfer of control of the Tenant; (d) Unauthorized assignment of this Agreement; (e) Unauthorized sale, assignment or transfer of this Agreement, assets, or a substantial interest therein; (f) a material Misrepresentation by or on behalf of the Tenant in any application or written statement upon which the City relies in making the decision to grant, review or amend this Agreement; (g) Abandonment of telecommunications facilities in the public ways or upon City property; (h) Failure to relocate or remove facilities as required in this Agreement; (i) Failure to pay taxes, compensation, fees or costs when and as due the City; 0) Insolvency or bankruptcy of Tenant; (k) Failure to construct or operate in accordance with approved permits; and (1) Violation of any material provision or term of this Agreement. The non -defaulting party shall give the other written notice of such default, and the defaulting party shall cure such default within thirty (30) days after receipt of such notice if such default is non -monetary and within ten (10) days after receipt of such notice if such default is monetary. In the event any such non -monetary default cannot reasonably be cured within such thirty (3 0) day period, if the defaulting party shall proceed promptly after the receipt of such notice to cure such default, and shall pursue curing such default with due diligence, the time for curing shall be extended for such period of time as may be necessary to complete such curing, however, in no event shall this extension of time be in excess of sixty (60) days, unless agreed upon in writing by the non -defaulting party. 22. REMEDIES. Should the defaulting party fail to cure a default under this Agreement, the other party shall have all remedies available either at law or in equity, including the right to terminate this Agreement. In the event City elects to terminate this Agreement due to a default by Tenant, it shall continue to honor all sublease and sublicense commitments made by Tenant through the expiration of the term of any such commitment if (a) there is no threat to the safety of persons or property in maintaining then -current installations, and (b) City receives the appropriate 12 rental payments for each sublessee and sublicensee; it being intended hereby that each such commitment shall survive the early termination of this Agreement. 23. ATTORNEY'S FEES. If there is any legal proceeding between City and Tenant arising from or based on this Agreement, the unsuccessful party to such action or proceeding shall pay to the substantially prevailing party all costs and expenses, including reasonable attorney's fees and disbursements, incurred by such prevailing party in such action or proceeding and in any appeal in connection therewith. If the substantially prevailing party recovers a judgment in any such action, proceeding or appeal, such costs, expenses and attorney's fees and disbursements shall be included in and as a part of such judgment. 24. ADDITIONAL TERMINATION RIGHT. If at any time during the Term, Tenant determines, in its sole and absolute discretion, with or without cause, that the Premises is no longer suitable or desirable for Tenant's intended use and/or purposes, Tenant shall have the right to terminate this Agreement upon one hundred eighty (180) days prior written notice to City. However, no prepaid rent shall be refundable except in the event any changes occur with respect to the City's use of the Property subsequent to the effective date of this Agreement (including but not limited to additional lessees as permitted by the City) and such changes result in the property becoming unsuitable for Tenant's intended purpose. 25. EMERGENCY REMOVAL OR RELOCATION OF FACILITIES. The City retains the right and privilege to cut or move any telecommunications facilities located within the public ways of the City and upon City property, as the City may determine to be necessary in response to any public health or safety emergency. The City shall not be liable to Tenant, or any other party for any direct, indirect, or any other such damages suffered by any person or entity of any type as a direct or indirect result of the City's actions under this Section. 26. RELOCATION OR REMOVAL OF FACILITIES. Within one hundred eighty (180) days following written notice from the City, Tenant shall, at its own expense, temporarily or permanently remove, relocate, change or alter the position of any reasonably removable facilities (i.e., not to include the tower or any buildings) within the public ways or upon City property whenever the City shall have reasonably determined that such removal, relocation, change or alteration is necessary for: (a) The construction, repair, maintenance or installation of any City or other public improvement in or upon City property or the public ways; and (b) The operations of the City or other governmental entity in or upon City property or the public ways. Additional time for removal or relocation may be granted at the discretion of the City which extension shall not be unreasonably withheld. If Tenant fails to remove the property upon request by the City, Tenant agrees to reimburse the City for any and all reasonable removal costs incurred by the City. 13 27. PRIOR AGREEMENTS. The parties hereby covenant, recognize and agree that the terms and provisions of this Agreement shall constitute the sole embodiment of the arrangement between the parties with regard to the Premises, and that all other written or unwritten agreements, contracts, or leases by and between the parties with regard to the Premises are hereby terminated, superseded and replaced by the terms hereof. 28. SUBORDINATION, NON -DISTURBANCE AND ATTORNMENT. In the event the Property is encumbered by a mortgage or deed of trust or other security instrument of any kind (a "Landlord Mort2a2e'), City, within fifteen (15) days following Tenant's request or immediately prior to the creation of any encumbrance created after the date this Agreement is fully executed, will obtain from the holder of each such Landlord Mortgage a fully -executed subordination, non- disturbance and attornment agreement (a "SNDA") in recordable form, which shall be prepared or approved by Tenant. The holder of every such Landlord Mortgage shall, in the SNDA, agree that in the event of a foreclosure, or conveyance in lieu of foreclosure of City's interest in the Premises, such Landlord Mortgage holder shall recognize and confirm the validity and existence of this Agreement and Tenant shall have the right to continue its use and occupancy of the Premises in accordance with the provisions of this Agreement, provided Tenant is not in default of this Agreement beyond applicable notice and cure periods. 29. LENDER'S RIGHTS. (a) City agrees to recognize the leases/licenses of all subtenants and sublicensees and will permit each of them to remain in occupancy of its premises notwithstanding any default hereunder by Tenant so long as (i) there is no threat to the safety of persons or property in maintaining then -current installations, and (ii) City receives the appropriate rental payments for each sublessee and sublicensee. City agrees to execute such documents as any such subtenant and/or sublicensee might reasonably require, including customary subordination, non -disturbance and attornment agreements if applicable and/or City recognition agreements, to further memorialize the foregoing, and further agrees to use reasonable efforts to also cause its lenders to similarly acknowledge, in writing, subtenant/sublicensee's right to continue to occupy its premises as provided above. (b) City consents to the granting by Tenant of a lien and security interest in Tenant's interest in this Agreement and all of Tenant's personal property and fixtures attached to the real property described herein, and furthermore consents to the exercise by Tenant's Lender of its rights of foreclosure with respect to its lien and security interest. City agrees to recognize Tenant's Lender (as hereinafter defined) as Tenant hereunder upon any such exercise by Lender of its rights of foreclosure. Nothing contained herein shall be construed to grant a lien upon or security interest in any of City's assets. (c) City hereby agrees to give Lender written notice of any breach or default of the terms of this Agreement, within fifteen (15) days after the occurrence thereof, at the address set forth in Section 33. City further agrees that in the event of any such breach or default under the terms of this Agreement, Lender shall have the right, to the same extent, for the same period and with the same effect, as the Tenant, plus an additional thirty (30) days after any applicable grace period to cure or correct any such default. 14 (d) City acknowledges that nothing contained herein shall be deemed or construed to obligate the Lender to take any action hereunder, or to perform or discharge any obligation, duty or liability of Tenant under this Agreement. No Lender shall become liable under the provisions of this Agreement or any lease executed pursuant to Section 30 hereof unless and until such time as it becomes, and then only for as long as it remains, the owner of the leasehold estate created hereby or thereby. (e) The Tenant shall have the right from time to time to mortgage or otherwise encumber the Tenant's interest in this Agreement; provided, however, in no event shall there be more than one such mortgage or encumbrance outstanding at any one time. If the Tenant shall so mortgage (each a "Tenant Mort2a2e') the Tenant's interest in this Agreement to one or more lenders (any such lender, and any successor, assign, designee or nominee of such lender, hereinafter a "Lender"), the Tenant shall ensure that the City is given prompt notice of such Tenant Mortgage and shall furnish the City with a complete and correct copy of such Tenant Mortgage, certified as such by the Tenant or such Lender, together with the name and address of such Lender. (f) This Agreement shall not be amended or modified in any respect which would be reasonably likely to have a material adverse effect on Lenders' interest therein without the consent of any Lender. In the event that a Lender shall become the owner of such leasehold estate, such Lender shall not be bound by any such modification or amendment of this Agreement made subsequent to the date of the Tenant Mortgage unless Lender shall have consented to such modification or amendment at the time it was made. 30. RIGHT TO NEW LEASE. (a) In the case of termination of this Agreement for any reason, or in the event this Agreement is rejected or disaffirmed pursuant to any bankruptcy, insolvency or other law affecting creditor's rights, the City shall give prompt notice thereof to a Lender at the address set forth in Section 33. Thereafter, City, upon written request of Lender, and within thirty (30) days after the receipt of such request, shall promptly execute and deliver a new lease of the Premises and assignment of all subleases and sublicenses to Lender or its designee or nominee, for the remainder of the Term upon all the covenants, conditions, limitations and agreements contained herein (including, without limitation, options to extend the Term) except for such provisions which must be modified to reflect such termination, rejection or disaffirmance and the passage of time, provided that such Lender (i) shall pay to the City, simultaneously with the delivery of such new lease, all unpaid rent due under this Agreement up to and including the date of the commencement of the term of such new lease and all reasonable expenses, including, without limitation, reasonable attorneys' fees and disbursements and court costs, incurred by the City in connection with the default by the Tenant, the termination of this Agreement and the preparation of the new lease, and (ii) shall cure all defaults existing under this Agreement which are susceptible to being cured by such Lender promptly and with due diligence after the delivery of such new lease. Notwithstanding anything to the contrary contained herein, provided such Lender shall have otherwise complied with the provisions of this Section, such Lender shall have no obligation to cure any defaults which are not susceptible to being cured by such Lender (for example, the bankruptcy of the Tenant). 15 (b) For so long as Lender shall have the right to enter into a new lease with the City pursuant to this Section, the City shall not enter into a new lease of the Premises with any person or entity other than Lender, without the prior written consent of Lender, as long as the Lender acts reasonably and without undue delay. 31. ADDITIONAL PROVISIONS. (a) The parties hereto agree that (i) the Tenant is in possession of the Premises notwithstanding the fact that the Tenant has subleased, or may in the future sublease, certain of the improvements thereon to third parties and (ii) the requirements of Section 365(h) of Title II of the United States Code (the `Bankruptcy Code") with respect to the Tenant's possession of the leasehold under this Agreement are satisfied. Accordingly, the right of the Tenant to remain in possession of the leasehold under this Agreement shall continue notwithstanding any rejection of this Agreement in any bankruptcy proceeding involving the City, or any other actions by any party in such a proceeding. This provision, while included in this Agreement, has been separately negotiated and shall constitute a separate contract between the parties as well as a part of this Agreement. The provisions of this Section 31(a) are for the benefit of the Tenant and its assigns, including, without limitation, Lender. The parties hereto also agree that Lender is a party in interest and shall have the right to appear as a party in any proceeding brought under any bankruptcy law or under any other law which may affect this Agreement. (b) The provisions of Sections 29 and 30 hereof shall survive the termination, rejection or disaffirmance of this Agreement and shall continue in full force and effect thereafter to the same extent as if Sections 29 and 30 hereof were a separate and independent contract made by the City, the Tenant and Lender and, from the effective date of such termination, rejection or disaffirmance of this Agreement to the date of execution and delivery of such new lease, Lender may use and enjoy the leasehold estate created by this Agreement without hindrance by the City. The aforesaid agreement of the City to enter into a new lease with Lender shall be deemed a separate agreement between the City and such Lender, separate and apart from this Agreement as well as a part of this Agreement, and shall be unaffected by the rejection of this Agreement in any bankruptcy proceeding by any party. (c) City shall have no right and expressly waives any right arising under applicable law, in and to that portion of the rentals payable to the Tenant under any lease of the improvements on the land demised hereunder, if any, which rentals may be assigned by the Tenant to Lender. (d) If a Tenant Mortgage is in effect, (i) this Agreement shall not be modified or amended by the parties hereto in any respect which would be reasonably likely to have a material adverse effect on Lenders' interest herein, or terminated or surrendered by the Tenant, nor shall the City accept any such termination or surrender of this Agreement by the Tenant, without the prior written consent of Lender and (ii) the City shall not have the right to terminate this Agreement in the event of a casualty or condemnation without the prior written consent of Lender. (e) The provisions of Sections 29 and 30 hereof are for the benefit of Lender and may be relied upon and shall be enforceable by Lender as if Lender were a party to this Agreement. 16 (f) The City shall, within ten (10) days of the request of the Tenant or any Lender or prospective Lender, provide an estoppel certificate as to any matters reasonably requested by the Tenant or Lender. (g) The right to extend or renew this Agreement and any right of first refusal to purchase the Premises may be exercisable by the holder of a Tenant Mortgage and, before the expiration of any periods to exercise such a right, the City must provide to Lender at least thirty (30) days prior written notice before the expiration of the right to so extend or renew in order to extinguish Lender's right to so extend, renew or purchase. (h) Under no circumstances shall the fee estate of the City and the leasehold estate created hereby merge, even though owned by the same party, without the written consent of the holder of a Tenant Mortgage. 32. QUIET ENJOYMENT. So long as Tenant is not in default under this Agreement beyond the applicable notice and cure period, City covenants and agrees that Tenant shall peaceably and quietly hold and enjoy the Premises throughout the Term, without any hindrance, molestation or ejection by City, its successors or assigns or by those claiming by, through or under them. 33. NOTICES. All notices, requests, claims, demands, and other communications hereunder shall be in writing and may be hand delivered (provided the deliverer provides proof of delivery) or sent by nationally -established overnight courier that provides proof of delivery, or certified or registered mail (postage prepaid, return receipt requested). Notice shall be deemed received on the date of delivery as demonstrated by the receipt of delivery. Notices shall be delivered to a parties at the address below, or to such other address that a party below may provide from time to time: If to City: City of Bremerton City Clerk 345 6th Street, Suite 100 Bremerton, WA 98337 34. MISCELLANEOUS. If to Tenant: Vertical Bridge Development, LLC 750 Park of Commerce Drive Suite 200 Boca Raton, FL 33487 Attn: General Counsel If to Lender: Toronto Dominion (Texas) LLC 31 West 52nd Street New York, NY 10019 Attn: Admin Agent Fax No. 416-982-5535 (a) Each party hereto warrants and represents that it has the necessary power and authority to enter into and perform its respective obligations under this Agreement. (b) If any term of this Agreement is found to be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. herein. (c) All attached exhibits are hereby incorporated by this reference as if fully set forth 17 (d) Failure of party to insist on strict performance of any of the conditions or provisions of this Agreement, or failure to exercise any of a party's rights hereunder, shall not waive such rights. (e) This Agreement shall be governed by and construed in accordance with the laws of the state in which the leased Premises are located. Venue shall be in the Kitsap County Superior Court in the State of Washington. (f) This Agreement constitutes the entire Agreement and understanding of the parties and supersedes all offers, negotiations and other lease agreements with regard to the leased Premises. There are no representations or understandings of any kind not set forth herein. Any amendment to this Agreement must be in writing and executed by both parties. (g) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. (h) A short -form Memorandum of Option to Lease (and a short -form Memorandum of Lease in the event Tenant exercises its option to lease the Premises) may be recorded at City or Tenant's option in the form as depicted in Exhibit 3 and Exhibit 4 attached hereto. [SIGNATURES BEGIN ON NEXT PAGE] 18 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date last signed by a party hereto. CITY: City of Bremerton A Municipal Corporation By: Greg Wheeler, Mayor Date: Approved as to Form: City Attorney Attest: City Clerk WITNESSES: Name: Name: TENANT: Vertical Bridge Development, LLC a Delaware limited liability company By: Name: Title: Date: 19 EXHIBIT 1 Legal Description of the Property(Parent Parcel) An i ,)terest in land, said interest being over a portion of the following described parent parcel: Resultant "Forest Ridge Park'" Parcel of Boundary Line Adjustment recorded under Recording No. 200511090001, records of Kitsap County, Washington, described as follows: That portion of the East half of the Southwest quarter of the Southwest quarter of the Southeast quarter and the East half of the Southwest quarter olthe Southeast quarter, situate in Section 15, Township 24 North, Range 1 East, W.M., Kitsap County, Washington; Except that portion of the said East half of the Southwest quarter of the Southwest quarter of the Southeast quarter conveyed to the State of Washington u7 -der Kitsap County Auditor's File Number 9607300Q48, being more particularly described as follows: Beginning at the South quarter corner of said Section 15; thence North 1022'19" East 667,86 feet along the ce nte r se ct i o n line to the Northwest corner of the Southwest quarter, Southwest quarter, Southeast quarter of said Section 15; thence South 8856'05" East 331.84 feet to the Northwest corner of the East half of said Southwest quarter and the true paint of beginning; thence continuing along the North line of said Southwest quarter, South 88°56'05" East 257.87 feet; thence South 123'14" West 475.25 feet; thenc6e North 8856'05' West 257.81 feet; thence North 1'22'47" East 475.25 feet to the true point of beginning; Also except that portion of the Southwest quarter of the Southeast quarter of said Section 15 being more particularly described as follows: Beginning at the Northeast corner of the the said Southwest quarter of the Southeast quarter, also being the true paint of beginning; thence Southerly along the East line of said Southwest quarter of the Southeast quarter to its intersection with the Southerly right of way of 6th Street; thence continuing along said East line to the Southwest corner of Lot 10, Block 1 of the plat of First Addition to Charleston, as recorded in Volume in the book of plats, Page 57, records of Kitsap County, Washington; thence leaving said East line North 76006'10" West 5 1.0 1 feet; thence on a curve to the right, the center of which bears North 39043'43" West 45.00 feet an arc distance of 183.67 feet; thence South 1407'42" West 5.00 feet; thence North 65°49'06" West 143,10 feet to its intersection with a line parallel to the East line of said Southwest quarter of the Southeast quarter and 200 Westerly thereof; thence along said parallel line North 1°22'14" East 150.00 feet to the said Southerly right of way of 6th Street; thence along said Southerly right of way to the: true paint of beginning; 20 Also Except for the North 30 feet of the said East half of the Southwest quarter of the Southeast quarter for road. The following may be used as an abbreviated legal description on the documents to be recorded, per Amended RCW 65.04.045. Said abbreviated legal description is not a substitute for a complete legal description within the body of the document: Portion SW SE, 1.5 24N ME Tax Parcel No. 152401-4-021-2007 21 EXHIBIT 2 Premises (Site Sketch to be Replaced with a Final Survey) rcA L—TIT E L IT rl IllJ4 -E LE L —TI h 45 R ETA"NWALL ACCESS EASEMENTTO FOLLOW EXISTING wGRAVEL ROAD TO 3f� fUT L�Tu WATER TANKS z 4— ---------- POLE 4 1, OrX40r LEASE 1 z T 4REA :4 0[ir AIL 'R 1E ELEY :"31 1 A A i 09,4 CONCRETE VIATER TAW TUTILITY EASEMENT 1A75CE 7$ER L4.r' L=X TOP OF WALL L=Z*6,6 TO R U N CO$JG THE ACCESS EASEMENT "A. 22 -T)UT TO POWER POLE ON 1ST STREET & HARTF�WM EXHIBIT 3 Memorandum of Option to Lease (Attached) 23 (Above 3" Space for Recorder's Use Only) Upon Recording Return to: Vertical Bridge Development, LLC 750 Park of Commerce Drive, Suite 200 Boca Raton, FL 33487 Attn: Daniel Marinberg Site Name: US -WA -5107 Site Number: Forest Ridge MEMORANDUM OF OPTION TO LEASE This Memorandum of Option to Lease ("Memorandum") evidences an Option and Lease Agreement (the "Lease") between by and between the City of Bremerton, a Washington municipal corporation (which acquired the portion of the Property in the East half of the Southwest quarter of the Southeast quarter as the City of Charleston), hereinafter the "City," whose address is 345 6th Street, Suite 100, Bremerton, WA 98337, and Vertical Bridge Development, LLC, a Delaware limited liability company, hereinafter, "Tenant," whose address is 750 Park of Commerce Drive, Suite 200, Boca Raton, FL 33487, dated , 2018 (the "Effective Date"), for a portion (the "Premises") of the real property (the "Property") described in Exhibit A attached hereto. Pursuant to the Lease, City has granted Tenant an exclusive option to lease the Premises (the "Option'). The Option commenced as of the Effective Date and shall continue in effect for a period of one (1) year from the Effective Date. City ratifies, restates and confirms the Lease and, upon exercise of the Option, shall lease to Tenant the Premises, subject to the terms and conditions of the Lease. The Lease provides for the lease by the City to Tenant of the Premises for an initial term of five (5) years with four (4) renewal option(s) of an additional five (5) years each, and further provides: 1. The Lease may be assigned by City only in its entirety and only to a purchaser of the fee interest of the Property; and may be assigned by Tenant only in accordance with the terms of the Lease; 24 2. Under certain circumstances, Tenant has a right of first refusal to acquire the Premises from City; 3. This Memorandum is not intended to amend or modify, and shall not be deemed or construed as amending or modifying, any of the terms, conditions or provisions of the Lease. In the event of a conflict between the provisions of this Memorandum and the provisions of the Lease, the provisions of the Lease shall control. The Lease shall be binding upon and inure to the benefit of the City and Tenant and shall inure to the benefit of their respective heirs, successors, and assigns, subject to the provisions of the Lease. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK, SIGNATURES BEGIN ON NEXT PAGE] 25 IN WITNESS WHEREOF, the parties hereto have executed this MEMORANDUM OF OPTION TO LEASE as of the date last signed by a party hereto. CITY: City of Bremerton a municipal corporation By: Name: Title: Date: Approved as to Form: Name: Attest: Name: STATE OF COUNTY OF On this day of 20, before me, the undersigned, a Notary Public in and for the State of duly commissioned and sworn, personally appeared to me known to be the of , the corporation that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act of and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute the said instrument and that the seal affixed is the corporate seal of said corporation. Witness my hand and seal the day and year first above written. Notary Public residing at 26 Printed Name: My Commission Expires: 27 [Tenant's Signature Page to Memorandum of Option to Lease] WITNESSES: TENANT: Name: Name: STATE OF COUNTY OF Vertical Bridge Development, LLC a Delaware limited liability company By: Name: Title:_ Date: On this day of 20, before me, the undersigned, a Notary Public in and for the State of , duly commissioned and sworn, personally appeared to me known to be the of Vertical Bridge Development, LLC, the limited liability company that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act of and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute the said instrument. Witness my hand and seal the day and year first above written. Notary Public residing at Printed Name: My Commission Expires: 28 EXHIBIT A (TO MEMORANDUM OF OPTION TO LEASE) The Property An interest in land, said interest being over a portion of the following described parent parcel: Resultant "Forest Ridge Park'" Parcel of Boundary Line Adjustment recorded under Reoording No. 200511090001, records of Ktsap County, Washington, described as follows: That portion of the East half of the Southwest quarter of the Southwest quarter of the Southeast quarter and the East half of the Southwest quarter olthe Southeast quarter, situate in Section 1.5, Township 24 North, Range 1 East, W.M., Kitsap County, Washington; Except that portion of the said East half of the Southwest quarter of the Southwest quarter of the Southeast quarter conveyed to the State of Washington under Kitsap County Auditor's File Number 9607300048, being more particularly described as follows: Beginning at the South quarter corner of said Section 15; thence North 1022'19" East 667,86 feet along the ce nte r se ct i o n lune to the Northwest corner of the Southwest quarter, Southwest quarter, Southeast quarter of said Section 15; thence South 88°5605" East 331.84 feet to the Northwest corner of the East half of said Southwest quarter and the true point of beginning; thence continuing along the North line of said Southwest quarter, South 88°56'05" East 257.87 feet; thence South 1023'14" West 475.25 feet; thenc5e North 89'56'05" West 257.81 feet; thence North 1°22'47" East 475.25 feet to the true point of beginning; Also except that portion of the Southwest quarter of the Southeast quarter of said Section 15 being more particularly described as follows: Beginning at the Northeast corner of the the said Southwest quarter of the Southeast quarter, also being the true point of beginning; thence Southerly along the East line of said Southwest quarter of the Southeast quarter to Its intersection with the Southerly right of way of 6th Street; thence continuing along said East line to the Southwest corner of Lot 10, Block 1 of the plat of First Addition to Charleston, as recorded in Volume 4 in the book of plats, Page 57, records of Kitsap County, Washington; thence leaving said East line North 76006'10" West 51.01 feet; thence on a curve to the right, the center of which bears North 39043'43" West45.00feetan arc distance of 183.67 feet; thence South 14°0742" West 5.00 feet; thence North 65'49'06' -West 143.10 feet to its intersection with a line parallel to the East line of said Southwest quarter of the Southeast quarter and 200 Westerly thereof; thence along said parallel line North 1°22'14" East 154.00 feetto the said Southerly right of way of 6th Street; thence along said Southerly right of way to the true point of beginning; 29 Also Except for the North 30 feet of the said East half of the Southwest quarter of the Southeast quarter for road. The following may be used as an abbreviated legal description on the documents to be recorded, per Amended RCW 65.04.045. Said abbreviated legal description is not a substitute for a complete legal description within the body of the document: Portion SW SE, 1.5 24N ME Tax Parcel No. 152401-4-021-2007 30 EXHIBIT 4 Memorandum of Lease (Attached) 31 Upon Recording Return to: Vertical Bridge Development, LLC 750 Park of Commerce Drive, Suite 200 Boca Raton, FL 33487 Attn: Daniel Marinberg Site Name: US -WA -5107 Site Number: Forest Ridge (Above 3" Space for Recorder's Use Only) MEMORANDUM OF LEASE This Memorandum of Lease ("Memorandum") evidences a Lease Agreement (the "Lease") between the City of Bremerton, a Washington municipal corporation (which acquired the portion of the Property in the East half of the Southwest quarter of the Southeast quarter as the City of Charleston), hereinafter the "City," whose address is 345 6th Street, Suite 100, Bremerton, WA 98337, and Vertical Bridge Development, LLC, a Delaware limited liability company, hereinafter, "Tenant," whose address is 750 Park of Commerce Drive, Suite 200, Boca Raton, FL 33487, dated , 2018 (the "Effective Date"), for a portion (the "Premises") of the real property (the "Property') described in Exhibit A attached hereto. City hereby ratifies, restates and confirms the Lease and leases to Tenant the Premises, subject to the terms and conditions of the Lease. The Commencement Date of the Lease is . The Lease provides for the lease by the City to Tenant of the Premises for an initial term of five (5) years with four (4) renewal option(s) of an additional five (5) years each, and further provides: 1. As to Tenant's interest in the Lease and all Tenant's assets and personal property on the Premises, City will attorn to any mortgagee of Tenant and will subordinate any City's lien to the liens of Tenant's mortgagees; 2. Tenant (and persons deriving rights by, through, or under Tenant) are the sole parties to market, use, or sublease any portion of the Premises for wireless communications or 32 broadcast facilities during the term of the Lease (such restriction shall run with the land for the duration of the Lease and be binding on the successors and assigns of City); 3. The Premises may be used exclusively by Tenant for all legal purposes related to its installation and maintenance of communications facilities, including without limitation, erecting, installing, operating and maintaining radio and communications towers, and equipment; 4. Tenant is entitled to sublease and/or sublicense the Premises, including any communications tower located thereon; 5. Under certain circumstances, Tenant has a right of first refusal to acquire the Premises from City; 6. The Lease may be assigned by the City only in its entirety and only to a purchaser of the fee interest of the Property; and by the Tenant only in accordance with the terms of the Lease; and 7. This Memorandum is not intended to amend or modify, and shall not be deemed or construed as amending or modifying, any of the terms, conditions or provisions of the Lease. In the event of a conflict between the provisions of this Memorandum and the provisions of the Lease, the provisions of the Lease shall control. The Lease shall be binding upon and inure to the benefit of the City and Tenant and shall inure to the benefit of their respective heirs, successors, and assigns, subject to the provisions of the Lease. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK, SIGNATURES BEGIN ON NEXT PAGE] 33 IN WITNESS WHEREOF, the parties hereto have executed this MEMORANDUM OF LEASE as of the date last signed by a party hereto. CITY: City of Bremerton a municipal corporation By: Name: Title: Date: Approved as to Form: Name: Attest: Name: STATE OF COUNTY OF On this day of 20_, before me, the undersigned, a Notary Public in and for the State of , duly commissioned and sworn, personally appeared to me known to be the of , the corporation that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act of and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute the said instrument and that the seal affixed is the corporate seal of said corporation. Witness my hand and seal the day and year first above written. Notary Public residing 34 Printed Name: My Commission Expires: 35 [Tenant's Signature Page to Memorandum of Lease] WITNESSES: TENANT: Name: Name: STATE OF COUNTY OF Vertical Bridge Development, LLC a Delaware limited liability company By: Name: Title: Date: On this day of 20, before me, the undersigned, a Notary Public in and for the State of duly commissioned and sworn, personally appeared to me known to be the of Vertical Bridge Development, LLC, the limited liability company that executed the foregoing instrument and acknowledged the said instrument to be the free and voluntary act of and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that is authorized to execute the said instrument. Witness my hand and seal the day and year first above written. Notary Public residing Printed Name: My Commission Expires: 36 EXHIBIT A (TO MEMORANDUM OF LEASE) The Property An interest in land, said interest being over a portion of the following described parent parcel: Resultant "Forest Ridge Park'" Parcel of Boundary Line Adjustment recorded under Recording No. 200511090001, records of Kitsap County, Washington, described as follows: That portion of the East half of the Southwest quarter of the Southwest quarter of the Southeast quarter and the East half of the Southwest quarter olthe Southeast quarter, situate in Section 15, Township 24 North, Range 1 East, W.M., Kitsap County, Washington; Except that portion of the said East half of the Southwest quarter of the Southwest quarter of the Southeast quarter conveyed to the State of Washington under Kitsap County Auditor's File Number 9607300048, being more particularly described as foIIowrs: Beginning at the South quarter corner of said Section 15; thence North 1022'19" East 667.86 feet along the center section line to the Northwest corner of the Southwest quarter, Southwest quarter, Southeast quarter of said Section 15; thence South 885605" East 331.84 feet to the Northwest corner of the East half of said Southwest quarter and the true paint of begin7ing; thence continuing along the North line of said Southwest quarter, South 88°56'05" East 257.87 feet; thence South 123'14" West 475.25 feet; thenc6e North 88°56'05" West 257.81 feet; thence North 122'47" East 475.25 feet to the true point of beginning; .also except that portion of the Southwest quarter of the Southeast quarter of said Section 15 being more particularly described as fol Iowrs: Beginning at the Northeast corner of the the said Southwest quarter of the Southeast quarter, also being the true point of beginning; thence Southerly along the East line of said Southwest quarter of the Southeast quarter to its intersection with the Southerly right of way of 6th Street; thence continuing along said East line to the Southwest corner of Lot 10, Block 1 of the plat of First Addition to Charleston, as recorded in Volume 4 in the book of plats, Page 57, records of Kitsap County, Washington; thence leaving said East line North 76006'10" West 5 1.0 1 feet; thence on a curve to the right, the center of which bears North 39°43'43" West 45.00 feet an arc distance of 183.67 feet; thence South 1400742" West 5.00 feet; thence North 65°49'06" West 143.10 feet to its intersection with a line parallel to the East line of said Southwest quarter of the Southeast quarter and 200 Westerly thereof; thence along said parallel line North 1°22'14" East 150.00 feet to the said Southerly right of way of 6th Street; thence along said Southerly right of way to the true point of beginning; 37 Also Except for the North 30 feet of the said East half of the Southwest quarter of the Southeast quarter for road. The following may be used as an abbreviated legal description on the documents to be recorded, per Amended RCW 65.04.045. Said abbreviated legal description is not a substitute for a complete legal description within the body of the document: Portion SW SE, 1.5 24N ME Tax Parcel No. 152401-4-021-2007 Said interest being over land more particularly described by the following description: Insert metes and bounds description of area 38 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Comparing Wireless Telecommunications Antenna Heights Case Study: T -Mobile and Forest Ridge Background On April 4 of 2016, T -Mobile contacted the City of Bremerton about leasing space for a cell site at an existing tower, commonly referred to as the KBRO tower, on City property in Forest Ridge Park. On April 7, 2016, 1 sent the T -Mobile representative some requested information about how commercial electrical power reaches the KBRO tower, from a utility pole near the intersection of South Hartford Avenue and 1" Street. This utility pole is just south of Forest Ridge Park. There is some confusion over whether or not this intersection was ever considered by T -Mobile as a possible cell site. At least one City representative thought it was under evaluation. To my knowledge, it was never considered, but I have included it in this report for the sake of completeness, and in case it was a potential site. In the following days, T -Mobile concluded that the KBRO tower is unsuitable for their purposes. At that time, they began searching for an alternate location that would serve the same populace. On May 9 of 2016, a T -Mobile representative contacted me about modifying one of their existing installations, located at 31016th Street, which is just north of the park. They were interested in replacing the existing City pole (which they said was 80 feet) with a taller pole (150 feet) and replacing their old equipment with newer equipment at the higher elevation. Later, in October of 2016, T -Mobile contacted the City about constructing a new site adjacent to the City's reservoir at Forest Ridge Park. This proposal included the construction of a new 150 foot monopole. To summarize, I have mentioned four possible sites: 1. The existing KBRO tower, which was rejected. 2. A utility pole at the intersection of S. Hartford Ave. and 1" Street. 3. A utility pole at 31016 1h Street (current site, 80 feet, considering 150 feet). 4. A 150 foot monopole adjacent to the Forest Ridge Reservoir (possible new site). Sites 2, 3, and 4 are the subject of this report. For their locations, refer to Figure 1 below. For reference, the KBRO tower location is also marked. Page 1 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com 31016" Street (current site) as I .. "". �fo r k � 5. Hertford Ave. and V Strout Figure 1: Possible T -Mobile sites for improved coverage The middle of Forest Ridge Park is at a higher elevation than either 1" Street or 6t" Street. A telecommunications site at 15t Street is blocked from providing coverage north of the park, and a telecommunications site at 6t" Street has its signal blocked to the south. Page 2 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com T -Mobile Antenna Simulations As part of the request for constructing a 150 foot monopole at the reservoir, T -Mobile provided some antenna simulation pictures. These pictures were taken at street level, and geometric calculations were performed so that a photograph of a monopole could be inserted into the picture and appear approximately to scale. See Figure 2 and Figure 3 below. Figure 2: From Summit Ave. N., looking Northwest Page 3 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com T -Mobile Antenna Simulations, continued Figure 3: from Marion Ave. N., looking East Page 4 An Inquiry Made FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com As part of the City's consideration of T -Mobile's request, the following questions were asked: 1. Does the tower have to be visible above the tree line? 2. Is it necessary to have the tower at 150 feet instead of 80 feet? The rest of this report is the answer to those, and similar, questions. The Quick Answer To begin, here's the short, fast answer: if I was the RF engineer, and I was told I had to keep the antennas below the tree line at Forest Ridge, I'd say, "Never mind. They won't let us build a usable site, so we need to look elsewhere." Below the tree line at that location would be totally useless. Now, for the explanation. In More Detail Those who are familiar with the controversies surrounding wireless communications installations may have heard that sometimes wireless signals without direct line of site (LOS) can be practical. In some cases, that can be true. However, this isn't one of those cases. The site will need to support 1.9 gigahertz (GHz) frequencies, and almost certainly higher frequencies (2.5 GHz is being built out in many places now). These frequency bands (both 1.9 GHz and 2.5 GHz) don't perform well at all in a coniferous screen. Additionally, the RF engineer, if he or she knows what they're doing, will plan for at least ten years of tree growth and make the tower or monopole tall enough to compensate. It is further necessary to consider that the site is at a higher elevation than the area that T -Mobile is trying to cover. The usable signal will be aimed at a downward angle, which means it will have to go through more of the trees to get to the populated area. The antennas need to be high enough so that the downward angle is clear of lower trees slightly farther away. Economic Motivation Something to keep in mind is that the taller the tower, the more it costs the carrier to build and maintain it. The carrier will use several factors in making the height decision, but the end result is that they'll select the shortest tower that will reliably do the job, because they don't want to spend the money to build more tower than they need. Comparison To Existing Installation Now, about the current site with its 80 foot pole: the reason it could be only 80 feet tall is because it was in the right-of-way. It has the twin advantages of being closer to the desired population, and less obstructed. Page 5 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Note that the existing site, to remain useful into the future, can't remain at the same height. T -Mobile requested increasing the height of the pole at this site to 150 feet. The height increase would be necessary to (1) add new equipment while continuing to operate the older equipment that serves customers with older phones, (2) improve coverage in difficult to reach areas around the hill, and (3) add radios (transceivers) to support more customers as populations grow. "Math and physics. It's all math and physics." In this section, we'll examine some of the statements made earlier in more detail. The purpose is to explain (1) why a line of site (LOS) radio path is sometimes necessary, and sometimes not, and (2) why a given height is chosen for a given tower. INTRODUCTION 1. Radio waves and light waves are both electromagnetic energy. a. The only difference between a radio signal (such as a cellular signal) and light is the frequency of oscillation. Radio Frequency (RF) energy is at a lower frequency than light. It can't be detected by the human eye because of its lower frequency, but a radio wave behaves the same way a light wave does. Electromagnetic energy - radio waves and light - behaves in one of three ways when it encounters a solid object. a. It may penetrate the object (coming out the other side), b. It may be absorbed by the object (goes in, but doesn't come out), or c. It may be reflected by the object (like light off a mirror). Let me add one clarification to item 2 above: electromagnetic energy behaves in all three ways for every object: there will be some percentage of reflection, absorption, and penetration, and the percentages will total up to 100 percent. Using light as our electromagnetic energy, here are some examples: CLEAR GLASS. Almost all light passes through an ordinary, clear glass window. Most of the light penetrates. There is also a small amount of light absorbed by the glass, where it is re -radiated as heat. That small percentage of the light is absorbed by the window. When you see glare off a window, that is reflection. A small percentage of reflection always happens, but you may or may not be standing at an angle that allows you to observe it. 2. TINTED WINDOWS. A car with tinted windows allows a smaller percentage of penetration, and has higher percentages of both absorption and reflection. SILVER MIRRORED SUNGLASSES. These sunglasses have a very high percentage of reflection, some absorption, and the penetration number is often a smaller number than for tinted windows. Page 6 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com For any given material, the percentages of penetration, reflection, and absorption vary by frequency. Here are some examples of how different frequency bands are received inside a wooden house. 1. At 27 MHz (CB radio), a wooden house is like clear glass to alight wave. 2. At 450 MHz (older police radios), a wooden house is like tinted windows. 3. At 850 MHz (some cellular systems and modern police radios), a wooden house is like very dark sunglasses. Most of the radio waves go into a building through the actual clear glass windows, and then are reflected off of the interior walls to move around inside. The wood exhibits a lot of both absorption and reflection. 4. At 1,900 MHz (T -Mobile's first cell phones), a wooden house is like silver mirrored sunglasses. Compared to 850 MHz, the percentage of reflection goes up, and the percentage of absorption goes down. Again, most of the signal enters the building through the clear glass windows. 5. At 2,500 MHz (the newest wireless phones), the radio waves behave pretty much the same as light reflecting off a mirror. The only useful signal enters through the windows and then reflects off of the interior walls to travel through the building. ► IM Now, with all of this background information, we're ready to discuss the difference between putting the antennas at 80 feet at an intersection, and putting them below the tree line by the Forest Ridge reservoir. 1. At a height of 80 feet at an intersection of two streets, a. The antennas are higher than most houses, and b. The electromagnetic waves can reflect off of houses - and trees - to travel down the street and even around corners and down side streets. c. The trees are reflectors and the roads are corridors for the radio waves. Below the tree line, completely encircled by trees at the reservoir, the radio waves are reflected multiple times until they are simply absorbed by the trees. The only radio waves that escape are the ones that are reflected up into the sky, in a conical pattern. If the antennas are mounted above the tree line at the reservoir, then the electromagnetic waves can make the journey to the surrounding streets and neighborhoods. Also note that the coverage areas of the three locations will be vastly different. Page 7 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com At the intersection of S. Hartford Ave. and 1" Street, with the antennas at 80 feet, the signal is entirely blocked to the north. Specifically, there will be no signal on the far side of Forest Ridge Park. At 31016 1h Street, the signal is blocked to the south of Forest Ridge Park. On the other hand, if the antennas are mounted on a monopole at the reservoir (high enough to clear the trees), the coverage area is much larger, and fewer towers may be needed to accommodate future growth in the numbers of cellular subscribers. The remainder of this report shows calculated coverages from each of the three locations. Coverage maps are made by using propagation analysis software designed for this purpose. Propagation analysis software is a generic engineering tool, and can be used for any frequency operated by any radio licensee. For example, the same propagation analysis software can be used to determine the coverage for a police or ambulance radio system, a commercial broadcast AM or FM station, a cellular carrier, or any other wireless service. Note, however, that the coverage pattern will be different for each frequency. For each of the three locations, there are two propagation analyses shown: one assuming a 150 foot tower, and one assuming an 80 foot tower. This combination of six propagation analyses allows us to compare one site with another, and also to compare the effects of two different tower or pole heights at the same site. Page 9: 31016 1h Street, 150 foot pole, with satellite map for comparison Page 10: S. Hartford and 1st Street, 150 foot pole, with satellite map for comparison Page 11: Water Tower, 150 foot pole, with satellite map for comparison Page 12: 3101 6th Street, 80 foot pole, with satellite map for comparison Page 13: S. Hartford and 1st Street, 80 foot pole, with satellite map for comparison Page 14: Water Tower, 80 foot pole, with satellite map for comparison Page 15: Comparing 150 and 80 foot poles: 3101 6th Street Page 16: Comparing 150 and 80 foot poles: S. Hartford and 1st Street Page 17: Comparing 150 and 80 foot poles: Water Tower Page 8 1 Ip 1I'll SI £ V' ixdF y�RFY�P' y� I [. "i�'mM1ard aey t l dl Y /q KA d'G If & T,�naq'�Saund V ��1 p.,=A h da�.� ,•Mq4� p may G:`6 lea IC nle !!r,= d, n•�di °c C 3 xqa •A n. #i N. P rky 1� r y, �# EIT F @ n A nrK 4*g'�A 1 cif !y X17,• � _ 4/ iYm sl�-. hon IVQ - NP, la A. . 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A q Ill l� SIP P Ik S �i 5 1 ..R kYP°M 4 d • 1 � ICo pier rS- � °•� � n 3 rk x a: '��' � '�l�t� � k�Ta r a1n � �'I �� • . ♦* 1 9ldifinem ral 1' E' J OCamp IAXean I p, menon n e K tsap Lak I' `'V W. dal DepaHmnt ®2bftH P Hat6orslde Founlain Perk Y1t, a. iL � Ifi 3� forst AvIf " Google yta er lryl°� '� ■E■ µoi /y eyl mAf •. • �� e 1 • �Lrl, 4 Ak y 1, - 1 a ♦ ; ;tk m "",d Af r I yall pa RY ' � i i �' h 1 �i "'l..f'S• '� vvql.cma 'Mer ■ +� ; 1t` .k:?*- 10 ♦ 41. YO 4 a , FA r,*. 7r d� a { en n � ♦ m� Conclusion FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Comparing the six scenarios, we see that: 1. For all locations, the coverage is improved if the antennas are at 150 feet compared to 80 feet. 2. The proposed location at the highest elevation (the water tower) provides the best coverage if the antennas are at 150 feet. 3. However, the water tower location provides the worst coverage if the antennas are below the tree line. Final Remarks While this report is a specific analysis of possible locations for a T -Mobile site, it contains many explanations and descriptions that are true of all wireless telecommunications installations. This report is a useful reference in considering other potential installations by other carriers. Report prepared by: Bob Young December 1, 2016 Page 18 OVERVIEW FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com About Bob Young Bob Young is the Founder and CEO of Peripheral Vision Communications Inc., dba FIFO Networks. He is also a Professor of Wired and Wireless Technology at Bellevue College, where he provides training to Information Technology professionals and Telecommunications professionals. Courses he has developed and which are currently available include Ethical Hacking and Cyber Security, and two courses in the Cyber Security Essentials series: (1) Data Management and (2) Hiring Security Professionals. For the last several years he has been flying throughout the U.S. to deliver technical training to the technicians and engineers at public utilities and wireless carriers. UTILITY COMPANIES Mr. Young has provided training and consulting to regional utilities in network design, security, and maintenance for secure data systems, Voice over IP (VoIP) phone systems, and secure Wi-Fi network access. WIRELESS COMPANIES He has trained the system engineers at wireless telecommunications carriers in complex subjects such as data traffic management, calculations, and projections. He also teaches the technical staff the skills needed to operate test equipment to test and maintain the systems. CLIENTS He has provided specialized technical instruction to Verizon Wireless, AT&T Wireless, Sprint, T -Mobile, Ericsson, Centuryl-ink, Microsoft, Comcast, Bombardier, Boeing, Georgia Power, Alabama Power, Memphis Light Gas & Water, Southern California Edison, CenterPoint Energy, San Diego Gas & Electric, USMC, and many others. EARLIER At the beginning of his career, Mr. Young received a Secret clearance from the US Navy for his work with wireless communications electronics. Before starting his own company, he was the Director of National System Development at Western Wireless (Cellular One). Page 19 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Public Hearing on Ordinance Study Session Date: July 25, 2018 No. amending Chapter 20.70 of the COUNCIL MEETING Date: August 1, 2018 BMC related to the District Center Core Department: DCD Zone Mixed -Use Development Presenter: Allison Satter, Sr. Planner Phone: (360) 473-5845 SUMMARY: The action before Council is to conduct a Public Hearing and adopt an Ordinance amending Bremerton Municipal Code (BMC) Title 20 related to providing flexibility for phased -in mixed use development within the District Center Core (DCC) zone. In the DCC zone, any structure containing a residential use which fronts a public street is currently required to provide a percentage of the building linear frontage to be designed to accommodate pedestrian oriented uses that activate the sidewalk, such as commercial or retail uses. The proposed flexibility allows the building to be developed as any allowed use within the zone (including residential -only buildings) provided that a percentage of ground -floor area is designed so it can easily be converted to a pedestrian oriented use, such as commercial or retail use, at a future date. . ATTACHMENTS: A. Staff Memo Attachment I: Planning Commission Meeting Minutes: • March 19, 2018 Workshop • May 21, 2018 Public Hearing B. Proposed Ordinance Exhibit A: Planning Commission Findings and Conclusion FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: ❑ Limited Presentation x❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business 0 Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. to amend Chapter 20.70 of the Bremerton Municipal Code related to the District Center Core Zone Mixed -Use Development. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action Attachment A DEPARTMENT OF COMMUNITY DEVELOPMENT 4, MEMORANDUM To: City Council From: Allison Satter, Senior Planner Date: July 16, 2018 Subject: Zoning Code Amendments related to providing flexibility for phased -in mixed use development with the District Center Core zone. EXECUTIVE SUMMARY The Planning Commission has unanimously recommended that the City Council review and approve the proposed Ordinance in order to make changes to the Bremerton Municipal Code related to providing flexibility for phased -in mixed use development within the District Center Core zone. In response to the current commercial and residential markets in and near Bremerton, the proposal is to add code flexibility for phased -in mixed use development. As the current District Center Core zone regulations requires all street -fronting development, that is residential, be developed as a mixed-use building, Staff has been notified by numerous developers that to require a commercial component makes their project unable to receive financing as the City and surrounding area (Silverdale) has overcapacity of vacant commercial buildings. This flexibility would allow the developer to phase-in the required commercial square footage along the street -frontage in residential buildings at a later date. In other words, the required street -fronting commercial area could be developed as residential units provided it could be easily converted back to commercial when there is a market for it. BACKGROUND Mixed-use development along street frontages is required in the majority of the City of Bremerton urban centers, including the Downtown Regional Center, and the District Center Core. It has been requested from the developers of this community that Bremerton consider expanding an existing code provision (currently allowed in the Downtown Subarea Plan) to the other centers to allow flexibility in meeting this mixed use requirement. The primary justification is that financing is difficult to obtain for commercial or office space when the City, and surrounding areas, have about 15% to 19% vacancy on commercial space. City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A CURRENT CODE within Bremerton Municipal Code (BMC) 20.62, District Center Core: all structures that include residential uses located adjacent to, area oriented towards, or area viewable from a public right-of-way shall provide a retail/commercial uses along a minimum of 65% of the ground floor building fagade. This provision supports the Comprehensive Plan policy that the Center will obtain a mix of commercial and residential uses. An example of this requirement is shown below. All r x re , m � 1 The f ont fa(ade ground floor is require to have a minimum of 65% of the linear f ontage as ground -oriented pedestrian uses such as retail/office square footage (this applies to both fa(ades on a corner lot). These uses and design should help stimulate the sidewalk with activity. Remaining fa(ade (and building) could be residential units. This proposed ordinance to amend the Bremerton Municipal Code will allow a development to match that of the Downtown and permit phase-in commercial development along the front fagade at a later date and adopt the 50% requirement of ground -floor area (versus the 65%). This code flexibility is already allowed within the Downtown Subarea Plan, and developers and the City has seen it used successfully. The discussion that follows provides examples, including a project within the Downtown Regional Center. 2 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A Exam pies: Fairfield Inn & Suites in Downtown Bremerton (239 4th Street) NF- 1 Existing fagade on Washington Ave. Blank wall. Section of Floor Plan for the new units (includes three of the seven proposed units). The proposed code does not get into specifics on how to meet the requirement that it is easily able to convert back to commercial space, however, here are a few features that this proposal used to illustrate that it can be easily converted back to commercial uses: It is plumbed and constructed to commercial standards (versus residential) including higher ceilings and appropriate electrical wiring. Other ways include that each unit has access to and from the street and adequate transparency (windows) on the fa4ade. For the Washington Avenue fa4ade, the windows are bricked in, but that can be easily converted back to windows as the headers and framing are already in place. Also, as there is direct access from the street/sidewalk, the proposal includes a wall in each unit that will act as a screen from the street (shown in a red box on the picture to the left). 3 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A 400 Washington, Bremerton This picture is from the 400 Condos. Though this building was constructed . for residential uses -only, this picture shows good examples of how a building could be easily converted by adding a feature like a landscaped wall. This wall could be removed and thus more --- opportunity for window shopping. Awnings are already in place, but could be expanded or signage added to them. Hollywood, California: motel & commercial space was converted into residential units. Though this is the exact opposite of the current proposal, this helps illustrate how a building could be converted to one use to another. This proposal changed the fagade in the following ways that could still be easily converted back: • Removed the awnings and commercial signage; • Maintained the windows/ transparency but added decorative window grilles. • Maintained numerous entrances to and from building. Inside the space: Ground Floor commercial space typical requires a 12' or 14' tall ceilings. Residential units are typically 10'. An easy conversion to create a more residential -feel would be to install drop ceilings like the three example above illustrate. 4 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A What areas would this Code change be applicable? This code proposal is to revise the District Center Core. All City centers (except the City's Puget Sound Industrial Center -Bremerton) is shown below: Centers Wheaton -Riddell DCC Wheaton -Sheridan DCC Eastside Employment Center Charleston DCC Downtown Regional Center Manette Neighborhood Center The Downtown Regional Center is regulated by the Downtown Subarea Plan (DSAP), and within the DSAP it currently allows the code flexibility for allowing ground -floor commercial uses to phase-in later. No changes are proposed at this time to the DSAP. The code changes are just applicable to the three District Centers. 5 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment ' i 4 Wheaton -Riddell DCC Wheaton -Sheridan DCC Eastside Employment Center Charleston DCC Downtown Regional Center Manette Neighborhood Center The Downtown Regional Center is regulated by the Downtown Subarea Plan (DSAP), and within the DSAP it currently allows the code flexibility for allowing ground -floor commercial uses to phase-in later. No changes are proposed at this time to the DSAP. The code changes are just applicable to the three District Centers. 5 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A Vacant Commercial Space: The primary justification for allowing the proposed flexibility to have mixed-use commercial ground -floor space come at a later date is because Staff has heard from developers and real estate agents that the City, and surrounding areas, has abundant vacant commercial space, and therefore it is difficult to get financing for a project that is required to construct more commercial space. With that consideration, the Planning Commission requested that Staff verifies this fact and, if possible, identify a threshold for when the City should remove this flexibility in the Code to maintain the Comprehensive Plan goal for mixed-use development. Staff has coordinated with Bradley Scott Inc. who has provided the City with the listing of vacant commercial and office spaces in Bremerton. City Staff and Planning Commission appreciates the time and effort that Bradley Scott Inc.'s staff has dedicated to this inquiry and wishes to publically thank them for their considerable work. Area wide: Kitsap County has vacant commercial space, with Bremerton having the most vacant commercial space in the County. BI = 10% vacant Bremerton = 19% vacant PO = 13% vacant Silverdale = 9% vacant Poulsbo = 15% vacant Kitsap = 15% vacant 6 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A While researching for vacant commercial spaces in Bremerton, the following map was provided which illustrates "where is commercial spaces available in April 20187" Each red indicator is a space that is available for leased and/or sale, and thus assumed vacant or partial vacant. Much of the concentration includes the Wheaton Way/Hwy 303 Corridor and Silverdale, with other pockets in Charleston, Downtown Bremerton, Auto Center Way, Navy Yard City (Bremerton's Urban Growth Area), Port Orchard and Winslow. Venice ,j Brownsville ,ci s Bainbridge Island irlkkala BainEl Islande g I racyton I I lahee I ' Port Blakely onc'o En Fort Ward ,��E3r�e,ton N ;`.. � Manche er Yard I:., F�jrra�� „� cvN .tad Gorsl �"` Srauth Colby .. Southworth F r!rnwo n Staff extracted the data from each area that may be impacted from the proposed code provisions. All spaces identified in the following charts are retail/office spaces. DOWNTOWN REGIONAL CENTER Please note that though Staff is presenting Downtown Bremerton information, the Downtown Subarea Plan already has this code flexibility written into the Code and thus no changes are proposed to the Downtown Subarea Plan. Available Address Sqft Been on the market (days) 275 4th Street 4,125 3182 409 Pacific Avenue 1123 3945 4383 990 252 4th Street 3035 216 522 4th Street 7507 564 423 Pacific Avenue 4069 216 555 Pacific Avenue 14000 3809 707 Pacific Avenue 3000 2003 Total sqft in Downtown: 42,232 Average Days = 2,000 (5 years) *For comparison: Safeway on Callow Ave is about 45,000 square feet (sqft). 7 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A WHEATON'S DISTRICT CENTER CORES As this analysis is intended to discuss where vacant commercial area is throughout the City, and for the ease of this review, Staff has included one chart that address all the vacant commercial space along the Wheaton Way and Hwy 303 Corridor (Wheaton Way turns into State Highway 303 north of Riddell Road; also Kitsap County jurisdiction is north of Riddell Road). The two District Center Cores (DCC) along Wheaton Way are the Wheaton -Riddell DCC and Wheaton -Sheridan DCC. 8 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Address Available Sq Ft Been on the market (days) 3441-3451 Wheaton Way 1600 2272 8000 1216 Sylvan Way 1679 78 3627 Wheaton Way 3400 448 4680 2160 3622 Wheaton Way 4230 224 4020 Wheaton Way 2183 2727 4060 Wheaton Way 3168 2727 5335 N }' 2400 J 4203-4217 Wheaton Way 18720 159 6720 U 4220 Wheaton Wav 144000 2002 1736-1740 Riddell Rd 624 340 625 340 0 1550 Riddell Rd 3715 559 U 3785 4942 Hwy 303 NE 7252 127 5060 Hwy 303 NE 1500 2355 5050 Hwy 303 NE 980 522 5072 Hwy 303 NE 1000 1071 5460 Hwy 303 NE 1672 797 5960 Wheaton Way 12096 3688 5971 Hwy 303 NE 1200 161 Total sqft on Wheaton/Hwy 303 = 242,724 Average Days = 1,200 (3 years) *For comparison: Fred Meyers and Walmart are both about 200,000 square feet 8 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A CHARLESTON DISTRICT CENTER CORE As many of the properties within the Charleston District Center Core have been vacant for numerous years, the list of vacant properties available for lease or sale and the actual number of empty commercial spaces are not accurate. Staff has assumed that this is due to property owners choosing to not actively market their property. To try to respond to the Planning Commission inquiry if there is a need in the area, Staff has obtained pictures of vacant commercial space within the Charleston District Center Core. Through this review, it is apparent that Charleston has many vacant commercial space. Please note that some of these picture include multiple empty spaces. m.. . n 9 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Attachment A Threshold to remove the exception? The Planning Commission requested that Staff identify a threshold of when this code flexibility (to have ground -floor commercial uses phased -in within the City's centers) should be removed. The primary concern is that the City's Comprehensive Plan vision for centers growth is for a balance of commercial and residential uses, and if the City allows residential - only buildings (with the options to change the first floor into commercial area when the market changes), will the City become a "bedroom" community with minimal commercial amenities and job opportunities within the centers? Staff and the Planning Commission inquired with the real estate professionals to help establish an appropriate threshold. Staff discussed considering absorption rate of the commercial market within Bremerton. Absorption Rate: The absorption rate is the way commercial real estate investors gauge tenant demand and is measured in square footage (a supply and demand calculation). Due When When to the current regulation to require commercial square dem"_ nd footage on the ground -floor, this adds to the supply. If these spaces are not occupied, then the demand is low. More supply and low demand is a negative absorption rate. The concern with using this calculation is it utilizes what is on the market at this time. As discussed previously within this report, due to chronic vacancies within some of the City's Centers (such as Charleston), not all vacant commercial square footage is listed available, therefore it does not provide the most accurate picture. After evaluating different options, it was determined that a quantitative number to put into the Code would be difficult for City Staff to monitor the specific details of the real estate market. As such, the real estate professionals provided the suggestion of having annual check -ins with them to acknowledge the market trends that they are seeing. If this is done on an annual basis this should provide adequate time to amend the code at any time if the market is turning to support more commercial space. Therefore if this amendment passes, the Department of Community Development will commit to the Planning Commission to have annual public presentation provided by real estate professional to identify the trends of the Bremerton real estate market. CONSLUSION: The Planning Commission finds that these revisions reflect the input received during the public workshop and hearing, and will promote development within the District Center Core. This exception will increase the housing supply within Bremerton by providing more housing options. To ensure the City continues having a balance of housing and employment opportunities, an annual status report on commercial growth/development will be presented to the Planning Commission to monitor if this exception is still appropriate. Therefore the Commission unanimously recommends that the City Council adopt these code changes. 10 City Council Memo for August 1, 2018 Public Hearing — Zoning Code Amendment Staff Memo Attachment 1: Planning Commission Approved Minutes: Workshop March 19, 2018 Hearing May 21, 2018 Attachment CITY OF BREMERTON PLANNING COMMISSION MINUTES OF REGULAR MEETING March 19, 2018 CALL TO ORDER: Chair Tift called the regular meeting of the Bremerton Planning Commission to order at 5:30 p.m. ROLL CALL Commissioners Present Staff Present Chair Tift Allison Satter, Senior Planner, Department of Community Development Vice Chair Wofford Ryan Crater, Senior Planner, Department of Community Development Commissioner Davis Commissioner Jones Commissioner Nerf Commissioners Excused Commissioner Conley Quorum Certified Chair Tift welcomed new Commissioner Davis. APPROVAL OF AGENDA VICE CHAIR WOFFORD MOVED TO APPROVE THE AGENDA AS PRESENTED. COMMISSIONER DAVIS SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. APPROVAL OF MINUTES VICE CHAIR WOFFORD MOVED TO APPROVE THE MINUTES OF JANUARY 22, 2018 AS PRESENTED. COMMISSIONER NERF SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. PUBLIC MEETING Call to the Public (public comments on any item not on the agenda) Chair Tift asked if there were any comments from citizens. Seeing none, he closed the public portion of the meeting. Attachment Public Workshop: City of Bremerton Housing Policies Ms. Satter referred the Commissioners to the written public comment received from Priscilla Bailey, which suggests some additional measures the Commission should consider based on the impact of the Wheaton Way Insignia Apartments on surrounding properties. She said she responded to Ms. Bailey, advising that her suggestions would be passed on to the Commission for future amendments to the code, but they are not specifically relevant to what the Commission is considering as part of tonight's workshop. Ms. Satter advised that the Mayor and City Council's 2018 goals identify "quality affordable housing" as a priority. The Mayor would like to focus on better permitting processes and technology, inclusionary zoning potential, multi -family tax exemptions, and the Weatherization Program that is already underway. The City Council's focus is on improving the Rental Housing Safety Program, establishing a stronger connection with the Bremerton Housing Authority (BHA) and stakeholders, and developing a coordinated countywide response to homeless issues. Ms. Satter said affordable housing is under the purview of the Planning Commission as it updates the zoning code (BMC Title 20). The Commission can recommend zoning code updates to help provide more quality affordable housing. It can also provide recommendations for reducing impediments and extra costs associated with development and improving and streamlining the permitting process. With all potential zoning code amendments, the Commission should discuss and consider whether the amendments will help or hinder quality affordable housing and provide those facts to City Council. Ms. Satter provided a quick summary of the Housing Analysis that was presented to the Commission in November. She emphasized that the lack of affordable housing impacts both communities and individual households. The Growth Management Act (GMA) requires that communities plan for their share of the anticipated population and provide housing for everyone. However, it does not provide any teeth or direction for how this should be accomplished. To answer the question of when housing is affordable, Ms. Satter explained that a household should spend no more than 30% of its total income on housing costs (mortgage/rent and utilities). Those spending more than 30% are considered "housing cost burdened," and those spending more than 50% are considered "severely housing cost burdened." For example, the average household income in Bremerton in 2015 was about $46,000, so 30% would be $1,142/month and 50% would be 1,902/month. The average rent in Bremerton is about $1,150, which represents a 15% increase compared to 2016 when the average rent was $1,011. The Median Household Income (MMI) can afford $1,142/month, which leaves $15 to cover the cost of all utilities. It is estimated that about 45% of households in Bremerton are cost burdened for housing, and the rental rate increases are expected to continue into the future. Ms. Satter reported that Bremerton had the highest rental rate increase compared to nearby cities. While rental rates in Bremerton are generally less than in Silverdale and Bainbridge Island, they are increasing at a much faster rate. The significant rate increase is due to inflation, increased cost of materials and labor, increased land values, changing development regulations and household demands for more space of higher quality. Bremerton's unemployment rate was 5.8% in July of 2017, which is higher than Kitsap County (4.7%) and Washington State (4.5%). Ms. Satter advised that the Median Household Income (MHI) in Bremerton rose from $30,095 in 2000 to $45,658 in 2015, which is an increase of about 52%. However, the Median Household Value (MHV) rose from $101,500 in 2000 to $185,537 in 2015, which is an increase of 83%. That means that MMI is not keeping up with the increase in housing cost, there is an increasing disparity between wages and rent. Nationally, median rent is increasing by 11% and the median income is only increasing by 1.4%. Ms. Satter referred to the Comprehensive Plan Goals and Policies related to housing, which the Commission should consider when providing recommendations to address quality affordable housing. She explained that the vision of the housing goals and policies is to "encourage the growth of Bremerton by strategically locating a wide variety of housing types throughout the City in a way that protects the environment and fosters community health " Every decision that is made relative to housing should be consistent with this vision's intent. To do this, the Commission should consider the following goals: Bremerton riannmg commission minutes March 19, 2018 — Page 2 of 8 Attachment • Goal H1. "Protect and enhance Bremerton's existing quality housing stock • Goal H2. "Encourage the development of a variety of new housing options and densities to meet the changing needs of Bremerton's residents. " • Goal H3. "Support access to quality and affordable ordable housing for all Bremerton residents." • Goal H4. "Implement and coordinate strategies that promote public and private efforts to facilitate improvements to the housing stock " Ms. Satter explained that each of the goals includes a list of polices that address such things as promoting preservation of quality housing, encouraging substandard structures to be redeveloped or removed, improving livability within the housing areas, promoting financial assistance for repair, providing a robust code enforcement program, providing a sense of community for neighborhoods, offering a full range of housing options to support in -fill development and increased densities, providing resources to remove blight conditions, streamlining efficient permit review, promoting increased housing densities, and removing impediments. Ms. Satter concluded that land use planning can be used to reinforce affordability problems or help improve the situation. While local jurisdictions, alone, cannot solve the problem, particularly if there are economic factors creating housing market turmoil, there is a wide range of tools for improving the local understanding of market dynamics and expanding affordable housing. Keeping the Comprehensive Plan Goals and Policies in mind, staff intends to propose potential amendments to help facilitate more affordable housing in the City. In particular, she asked that the Commission consider the following amendments: • Proposed Amendment 1: Provide flexibility to the mixed-use requirement within the identified Centers Ms. Satter explained that, currently, Bremerton has the most vacant commercial space in the county. Bremerton has a 19% vacancy compared to the next highest (Kitsap County and Poulsbo) at 15%. Because of the current vacancy rate, developers are unable to obtain financial assistance to construct the commercial component that is required on the ground floor within the Centers. On the other hand, the mixed-use requirement is intended to address the targets identified for each of the Centers, which encourages both commercial and residential development. If they allow developers to build just residential projects, they will not get the commercial space that is needed to support the residents of the City. People will end up going elsewhere to work and shop. That is not the type of live/work/play community that the City wants to become, however the City needs to encourage development. Ms. Satter advised that the current code requires that all structures located adjacent to or viewable from the right-of-way must have commercial uses for at least 50% of the frontage. However, the Downtown Subarea Plan allows more flexibility. The current Pedestrian Oriented Mixed Use (POMU) zone, offers two options for ground -floor uses: a. At least 50% of floor area abutting the linear sidewalk level should be `pedestrian oriented" for commercial development b. The floor area abutting at least 50% of the linear sidewalk level frontage shall be designed and constructed to accommodate future conversion to "pedestrian oriented" uses and may be occupied by any use permitted in the zoning district. The areas designed and constructed to accommodate future conversion shall meet the following standard, in addition to any other required basic or additional design standard; L The sidewalk level facade must include an entrance or entrances to accommodate a single or multi -le tenants or be structurally designed so entrances can be added when converted to the building uses listed in the paragraph above. Ms. Satter explained that the intent of the two options is to allow a variety of development that can easily be converted to commercial uses at a later date when the market changes. She referred to the Fairfield Inn mixed-use building, which has a hotel use on top, with shell space for commercial uses on the ground floor. While they have actively recruited tenants, none have gone in the space for many years. They have completed Design Board review and are awaiting a building permit to convert the commercial space into 7 residential units. She provided pictures to illustrate how the residential space could easily be converted back to commercial space at a later time. Bremerton Planning Commission Minutes March 19, 2018 —Page 3 of 8 Attachment Ms. Satter asked the Commission to provide feedback on staff's proposal to expand the flexibility allowed in the Downtown Subarea Plan to apply in the Wheaton -Riddell Downtown Commercial Center (DCC), Wheaton -Sheridan DCC, Charleston DCC and Manette Neighborhood Center (NC). She noted that the Eastside Employment Center does not have the mixed-use requirement. In that center, both outright commercial and outright residential uses are allowed. Ms. Satter reported that the City is seeing development come to the Wheaton -Riddell and Wheaton -Sheridan areas. In the Wheaton -Riddell DCC, Wilco is redoing the Lowes building. In addition, a permit application for fagade improvements was submitted for the K -Mart property, and the intent is to divide the building into multiple spaces for a variety of tenants. In the Wheaton -Sheridan DCC, the City recently received a permit application to demolish the East High School (except the gym). Not a lot is happening in the Charleston DCC, but there have been a number of inquiries for residential development in the Manette NC. However, people have been turned away because they cannot get financing for the ground floor commercial space as required by that zone. • Proposed Amendment 2: Provide incentives for infill development. Ms. Satter explained that "infill" refers to any new development in already built-up areas and includes redevelopment of existing properties to make more efficient use of the land. Infill development can include a variety of housing types such as duplexes and townhomes. Staff is interested in having a discussion with the Commission about whether these other housing types should be allowed in more areas of the City. Other potential topics include a review of the accessory dwelling unit (ADU) provisions to see if something could be done better or different and a discussion about allowing shared housing amenities such as parking areas or driveways. Throughout the discussion, staff would like the Commission to consider how code requirements could be reduced to promote infill development. For example, reducing lot coverage if you build an ADU or allowing compact - sized parking spots. Ms. Satter referenced two housing policies found in the Comprehensive Plan relative to infill development incentives: • Goal H3(A). "Provide opportunities for the production of new housing for all incomes, ages and family types through infill by stimulating growth of non-traditional housing types such as townhomes, carriage units, accessory dwelling units and duplexes in locations where they will seamlessly infill into the fabric of the existing neighborhoods. " • Goal H3(C). "Support increased densities and infill projects in order to capitalize on the cost efficiency of utilization of existing. utility services. Additionally, encourage maintenance of City services such as sidewalks, bike lanes, parks, utilities in order to enhance the overall affordability and health of the community. " Ms. Satter noted that most of Bremerton is built out, so most subdivision activity is for a small number of lots. She requested Commission feedback regarding potential infill incentives for subdivisions such as allowing more uses/options for subdivisions within certain areas. For example, in order to provide a transition between the Centers and the low-density residential neighborhoods, perhaps the City could allow one of the lots within a subdivision to be a duplex or townhome if it is located within a certain distance from a Center and meets specific criteria. Another option would be to allow small lot subdivisions, with lot sizes smaller than what the current code requires (4,300 square feet). Perhaps the City could allow one lot to be smaller so that existing residential lots could be subdivided to provide an additional infill lot for a single-family home. Ms. Satter said staff would like to focus on potential infill incentives for subdivisions, recognizing that subdivisions go through an extensive review process to verify that conditions are met. Providing infill opportunities through subdivisions would allow the City to provide more housing opportunities and promote home ownership. It would also promote infill to make more efficient use of the City's infrastructure. She expressed her belief that the City can do better than the current average lot size of 6 dwelling units/acre (7,260 square feet), particularly considering that the City's minimum lot size is 4,300 square feet. Ms. Satter said developers have expressed a desire for reductions in the subdivision code requirements, and they want to make subdivisions easier. However, it is important to keep in mind that the public can be negatively impacted by subdivisions. Subdivisions can be a hot topic for both the public and developers, and that is why she is presenting ideas rather than actual proposals for code amendments. Kurt Wiest, Bremerton Housing Authority (BHA), said the Puget Sound area is in the height of a housing crisis right now. They have a disparity between supply and demand. Rental prices are going up because the supply is going down and there is Bremerton Planning Commission Minutes March 19, 2018 — Page 4 of 8 Attachment an influx of population coming from King and Snohomish County who are looking for cheaper housing. The cost and time associated with the commute is something they are willing to factor into moving to this side of the water. Because they are not seeing an appreciable increase in the supply of housing, costs continue to go up. The cure to the problem is increasing the supply. He said he supports staffs recommendation to amend the zoning code to provide greater flexibility in development regulations and greater consideration for infill housing. Anything the City can do to increase the supply without diminishing the quality of life in the community is a good thing. The Commission has a significant responsibility to ensure that quality of life does not decrease as they try to address the housing crisis. Mr. Wiest commented that income has been relatively flat for those who are most impacted by an increase in housing cost. If adjusted for inflation, income has actually gone down. They have seen a significant increase in the number of homeless households in the community, and many households have had to double up to find adequate shelter at a time when there is scarcity and costs are going up. The City cannot do anything to increase the financial resources of a household, but they can figure out ways to decrease housing costs by increasing the supply of housing. Vice Chair Wofford recalled that the Bay Vista Development was originally establiphed as mixed housing. He knows that Habitat for Humanities has some units, and there are a variety of subsidized housing opportunities. He asked if there is also some upscale housing available in the development. Mr. Wiest reviewed that until 10 years ago, the West Park Development was a 582 -unit, low-income public housing project. The community decided that a change was necessary; and through a series of community charrettes, the unanimous consensus was that the site should be redeveloped into a mixed -income, mixed -housing type, mixed-use development. In 2008, the BHA boldly went forward with this major redevelopment project to replace the decaying affordable housing units. The BHA did four different projects, and Habitat for Humanity constructed six single- family homes. An additional 21 single-family homes were constructed that were leveraged home funds from the City. Once the BHA finished its projects, it was up to the private sector to fill in the gaps; and by 2017, all of the remaining land on the 84 -acre site has been sold. What is now vacant is in the hands of the private sector with plans for a fast-food restaurant, about 120 single-family residential units that will sell at market rate, and about 220 multi -family units. Once these developments are completed, only two undeveloped sites will remain. Peninsula Community Health purchased a 6 -acre parcel adjacent to Winco, and they are currently working on a feasibility study on building a clinic. Kitsap Credit Union has purchased the remaining parcel. They are currently working on a feasibility study for a potential retail banking establishment. He summarized that the overall vision was established 10 years ago, and they are now seeing the realization of that vision. It was never intended to be a one-for-one replacement of deeply affordable housing within the boundaries of West Park, but mixed housing (owner - occupied, rental and deeply affordable rental using housing subsidies). Commissioner Jones asked if the BHA works with non -profits to see what their population is like for low-income and the need for housing in those areas. Mr. Wiest answered yes. He explained that with the redevelopment of West Park, the supply of affordable housing has increased by 60% in Bremerton. - This is a remarkable feat that was made possible by a $20 million grant from the Department of Housing and Urban Development and using other resources wisely. The target population for these new units has been households below 50% of area median income (AMI). The BHA now realizes that the greatest need for the current financial resources (about $3 million) is for chronic homeless individuals. They are working in partnership with Kitsap Mental Health Services, Kitsap Community Resources, and Peninsula Community Health to put together a project that would build between 60 and 80 studio apartments for chronic homeless individuals. This development would have an element of "housing first," which means you take people as they are and where they are and provide intense on-site services for mental health, drug and alcohol treatment, general health and wellness, etc. The project is in the formative stages. Kitsap Community Resources received a grant from the 1/101 of 1% Chemical Dependency/Mental Health Program Sales Tax Fund to do a feasibility study on whether such a project could work and what the sources of funding would be. Community Frameworks has been engaged to do the feasibility study, which should be completed within the next month. They are looking for potential sites for the project. Commissioner Jones stressed the importance of locating a project of this type so that there is convenient access to public transportation, medical services, groceries, etc. She knows that these projects are possible and can work if all of the agencies coordinate together. She asked if any thought has been given to transitioning homeless families from the street to apartments, helping them get job training, etc. Mr. Wiest answered affirmatively. He explained that in their hierarchy there are special needs populations, victims of domestic violence, veterans, homeless families with children, the disabled, etc. The BHA does the best it can with its limited resources. In addition to increasing affordable housing by 60% over the last decade, the various agencies have coordinated efforts to establish a 1 -stop resource center (Housing Solutions Center) where all individuals who fsremerton nannmg Commission Minutes March 19, 2018 — Page 5 of 8 Attachment have housing needs can be diverted for help. The Housing Solutions Center appears to be doing as efficient and effective use of resources as they could hope for. Commissioner Jones asked if the BHA participates in Section 8 Vouchers, too. Mr. Wiest answered affirmatively. Unfortunately, in the hierarchy of federal needs, affordable housing is low on the priority list and congress has flatlined funding for the Section 8 Program. That means they are getting the same amount of money they have had for the past five years, but rental costs have risen significantly. The BHA has had to actually reduce the number of participants on the program by attrition. The situation is the same in jurisdictions throughout the country. Commissioner Jones said it is unfortunate that landlords throughout the City are increasing their rents so dramatically. Her neighbor was just notified that her rent (1 bedroom, 1 bath) would increase from $1,100 to $1,700 per month. Mr. Wiest agreed that it is staggering. It is simply a function of supply and demand, and they are making up for lost years between 2008 and 2014 when rents were flat or decreasing. Commissioner Jones suggested that some are taking advantage of the situation. This will result in more homeless families who have nowhere to go. She felt the situation would get worse before it gets better. Commissioner Davis calculated that, based on today's average interest rate, a $250,000 mortgage, which represents about 35% of home purchasers in the area, has a monthly payment of about $1,266. Even with the new units being built at Bay Vista, which are perceived to be beginner homes, the market is already outpacing the average buyer. This planned community was originally designed as a replacement for affordable units, although not one-for-one. As they add more market rate units, there will be no parity in Bay Vista. While these additional homes are needed, they do not include a component of affordability. Commissioner Davis said that, in talking with other entities and organizations who are working to implement affordable housing, they are finding that the regulatory and permitting fees for each unit equate to roughly 30% to 33% of the total construction cost. He asked if the BHA has found this to be true, too. Mr. Wiest said he has not seen this. With the sale of land at Bay Vista, there are certain restrictions that require the sale proceeds to go back into the development or acquisition of deeply affordable housing. One of the goals in the Bay Vista plan was de -concentration, which was achieved in the overall master plan. Sale proceeds were used to purchase existing properties throughout Bremerton to rehabilitate. De -concentration has been a good thing, and they have accomplished a one-for-one replacement, but it's been in other areas throughout the City. Mr. Wiess said another consideration the Commission should be aware of when talking about the overall housing burden, particularly with a mortgage, is the additional stress created by property tax increases. Owners of rental properties will also pass this increase on to renters. This makes a bad situation worse. Commissioner Davis said he understands the concept of incentivizing infill, but he would like staff to work towards a way to incentivize permanent affordable housing for purchase within the City via a deed restriction or some type of incentive for the builder that can spread out the infrastructure costs for the first five years of a purchase in the form of an abatement or assessment. He is interested in something that generates momentum to create permanent housing solutions. As good as the BHA is doing to provide affordable rental units via partnerships with other organizations, those are still tenuous, at best, and subject to market conditions. Mr. Wiess agreed and said it will take a lot of different things to help address the crisis they are in. Commissioner Davis suggested the quickest pathway is to figure out a way for the City to partner with the BHA and other organizations who are already adding to the solution to create an incentive program to excite more private dollars. This would be one way to fast track a solution that helps the market side associate better with the public needs. Commissioner Nerf said he recently attended a League of Women Voters meeting on the 1/10'ti of 1% Chemical Dependency/Mental Health Program Sales Tax Fund. The head of the committee was asked about the application of that money to homelessness, and he responded that you have to realize that giving someone a home is very' expensive on a per - person basis. In addition, it has to be a region -wide effort because if one jurisdiction solves the problem, people will come from other areas to take advantage of it. It will be very hard to break this market-driven situation. Mr. Wiest observed that Bremerton is not a mecca of homelessness, and people are not streaming into Bremerton. This is a problem that every community is having to deal with, both large and small. He commented that the cost of not doing anything is more expense than doing something. For example, it costs much more when people inappropriately use the health care system for shelter or when homeless individuals are inappropriately incarcerated. The cost of these inappropriate situations is about $25,000 to $30,000 per year, and you can house someone appropriately for around $13,000 per year. Bremerton Planning Commission Minutes March 19, 2018 — Page 6 of 8 Attachment Vice Chair Wofford observed that the AMI in Bremerton is about $42,000, but THE KITSAP SUN reported a few weeks ago that the AMI in Kitsap County was about $20,000 more. He also recalled that Bremerton has a large amount of vacant commercial space. He suggested that part of the problem with vacancy is the residents of the City do not have the disposable or discretionary income to support the small businesses that want to inhabit the small commercial spaces. They also need people with enough income to pay the taxes needed to support bus service, sewer, water, etc. However, none of the current proposals include eliminating the blighted areas of the City. There should be some proposal to incentivize the elimination of blighted areas so they can provide higher -quality housing for people with higher paying jobs who currently live outside of the City. A larger tax base is needed in order to provide public transportation, mental health support, etc. Mr. Wiest said he has always advocated for a loan fund that makes it worthwhile to invest in the property. He said he has seen an increase in the number of young families who are purchasing homes in Bremerton but are working in Seattle. While they are seeing increases in the average cost of homes in Bremerton, they are significantly cheaper than what you can find in King or Snohomish County. However, he agreed that encouraging more investment into Bremerton could have a positive impact on the community. Commissioner Nerf observed that one thing that makes visions of owning property in Bremerton a problem is that people in the County, in general, do not believe that people want to live in an urban environment. They cannot imagine not having two or three cars and acres of land. He doesn't believe it is the lack of housing that is the problem as much as the lack of amenities. Chair Tift referred to the ideas proposed by staff and asked for Commission feedback. He referred to proposed Amendment 1, which would expand the more flexible mined -use development standards in the Downtown Subarea Plan to the other DCCs and the Manette NC. He voiced concern that a home on the ground floor with a 14 -foot ceiling would not be all that attractive to anyone. Ms. Satter responded that she could provide examples of that have been used to address this concern. Commissioner Davis said he is in agreement with the overarching goal of allowing more flexibility for mixed-use development, but he would like to see a matrix built into the code so that the standards are applied differently in each of the Centers based on vacancy rates. For example, the vacancy rate in the Charleston DCC is much higher than in the Manette NC where property along the commercial corridor is a hot commodity. He would like to include a provision that if the vacancy rate falls below a certain threshold, abatement of the ground floor commercial requirement would no longer be an option. Ms. Satter agreed that it would be appropriate to monitor the situation. Commissioner Davis cautioned that if they do not build in a safety valve, the City could end up missing the mark in their goal of creating a balance of live, work and play when the market changes. They could end up addressing the same problem in reverse at some point in the future. Vice Chair Wofford agreed with Commissioner Davis. He said he supports the proposed amendment, which would help developers finance redevelopment projects. The change would also give current landlords incentives to modernize or improve their existing structures. Ms. Satter recalled that before the Downtown Subarea Plan was adopted in 2007, 400 condominiums were constructed with the ground floor commercial requirement. This development incorporated a live/work component to meet the requirement. Chair Tift summarized that the Commissioners have indicated general support for proposed Amendment 1, which would provide more flexibility for the mixed-use development requirement in the Charleston, Wheaton -Riddell, Wheaton -Sheridan and Manette Centers. They also voiced general support for potential amendments to the subdivision code (Amendment 2). Chair Tift observed that the Manette NC offers a lot of opportunities for infill. Many of the homes front the alleyways, so it appears that infill was an initiative at some point in the past, too. Vice Chair Wofford asked that staff consider an amendment that would incentivize improvements in blighted areas. Ms. Satter recalled that some areas were up -zoned in 2016. For example, Anderson Cove was rezoned to R-20 and some improvements have already occurred. She agreed to provide an analysis of the blighted areas, including changes that have occurred and what has been done to improve the areas. Bremerton Planning Commission Minutes March 19, 2018 — Page 7 of 8 Attachment BUSINESS MEETING Chair Report Chair Tift noted that, with the resignation of Commissioner Strube, there is a vacant position on the Commission. He asked Commissioners to encourage potential candidates to apply. Ms. Satter noted that applicants must have lived in the City for at least one year. Chair Tift recognized some of the positive changes that have occurred in the City during his tenure on the Commission. Some of the Commission's recommendations to the City Council have made a difference. It is a gratifying group to be involved in, and they have had good support from the staff and the City Council. Director Re ort Ms. Satter reported that Commissioner Strube has moved outside City limits and has resigned his position on the Commission. Ms. Satter thanked Michael Strube for his work while serving six years on the Commission. His contributions were noted and he defmitely made a difference. Ms. Satter announced that the application period for Comprehensive Plan,amendments is open until April 2"d. So far, no public initiatives have been received, but there are a few staff proposals. Ms. Satter announced that the City of Bremerton has applied for Opportunity Zone designation for several of the allowable census tracts meeting the application requirements regarding income levels and the potential for economic growth. Opportunity Zones are part of a new federal tax incentive. The City has been provided $275,000 in funding from the State Capital budget for the Eastside Employment Center to do a market study, Subarea Plan and Planned Action EIS to incentivize development. These items will come before the Planning Commission at some point in the future. Ms. Satter said the City also received a $450,000 grant for a corridor study for State Route 303, from the Warren Avenue Bridge over to Riddell. Part of the conversation has included removing driveways, reducing the number of lights, providing more crosswalks, etc. The City needs direction for this corridor, and the grant funding will help identify what should be happening along the essential corridor. Old Business There was no old business. New Business There was no new business. ADJOURNMENT The meeting was adjourned at 6:59 p.m. Submitted by: Aar)rea L Executive ;1�rcvll Rick yft, hair Planning Commission Bremerton Planning Commission Minures March 19, 2018 — Page 8 of 8 Attachment CITY OF BREMERTON PLANNING COMMISSION MINUTES OF REGULAR MEETING May 21, 2018 CALL TO ORDER: Chair Tift called the regular meeting of the Bremerton Planning Commission to order at 5:30 p.m. ROLL. CALL Commissioners Present Staff Present Chair Tift Andrea Spencer, Director, Department of Community Development Vice Chair Wofford Allison Satter, Senior Planner, Department of Community Development Commissioner Conley Commissioner Davis Commissioner Jones Commissioner Nerf Commissioner Pedersen Quorum Certified APPROVAL OF AGENDA VICE CHAIR WOFFORD MOVED TO APPROVE THE AGENDA AS PRESENTED. COMMISSIONER PEDERSEN SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. APPROVAL OF MINUTES VICE CHAIR WOFFORD MOVED TO APPROVE THE MINUTES OF MARCH 19, 2018 AS PRESENTED. COMMISSIONER JONES SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY, WITH COMMISSIONERS CONLEY AND PEDERSEN ABSTAINING. PUBLIC MEETING Call to the Public (public comments on any item not on the agenda) Chair Tift asked if there were any comments from citizens. Seeing none, he closed the public portion of the meeting. Public Hearin: Zoning Code Amendment — Code Flexibility for Phased -In Mixed -Use Develoment Ms. Satter advised that, currently, mixed-use development is required along street frontages in the commercial centers, and developers have requested that the City expand an existing Downtown Subarea Plan code provision that allows a phased -in approach to mixed-use development to include other centers. Their primary justification for the proposed amendment is that Attachment financing is difficult to obtain for the commercial component when commercial vacancy is high in the City and surrounding areas. In addition to allowing developers flexibility to phase-in the required commercial square footage along the street frontages at a later date, staff is proposing an amendment that would reduce the commercial space requirement in centers with a mixed-use component from 65% to 50% of the linear frontage. She emphasized that, as recommended by staff, the proposed amendment would apply to the Charleston, Wheaton/Sheridan and Wheaton/Riddell District Centers Cores (DCC), but not to the Manette Neighborhood Center. Again, Ms. Satter said the current code requires that at least 65% of the floor area of a mixed-use development abutting the linear sidewalk level must be commercial, and there are a number of different options for accomplishing this requirement but no exceptions. The proposed amendment would reduce the requirement to 50% and accommodate for a phased -in, mixed-use development. That means the site could be developed with residential uses on the entire street frontage, but it must be constructed in such a way to allow the residential units to be converted into commercial space once the market supports this change in use. In addition, the floor area abutting the linear sidewalk level must be designed to be pedestrian oriented. Ms. Satter advised that the proposed amendment would also add an exception for properties that have two or more frontages (corner lots), allowing for a reduction in the commercial space requirement on one of the frontages if the site has topographic and/or other site constraints. She specifically explained how the amendment would apply to a property in the Wheaton/Riddell DCC. Ms. Satter pointed to the Fairfield Inn downtown at the corner of Washington Ave. 41 Street to illustrate how the proposed amendment could be applied in a DCC. The building was constructed in 2009, but the ground floor commercial space has remained vacant and never been occupied. The owner recently submitted a building permit to create seven living units within the commercial space. To accommodate the residential units, brick will be used to cover half of the windows and the entrances will be relocated. The space can easily be converted back to commercial by removing the bricks and adjusting the entrances. Ms. Satter said questions have been raised about whether or not the City has a surplus of commercial square footage. To answer this question, she met with Gary Gartin and Vic Ulsh from Bradley Scott Commercial Real Estate, and they provided a map illustrating the vacant commercial space in Bremerton and its surrounding area. She summarized that seven buildings in the Downtown Subarea have been identified as vacant and the average time on the market is about five years. There is about 42,232 square feet of commercial space available in the downtown. In the Wheaton/Sheridan and Wheaton/Riddell DCCs (including areas outside the City limits but on the corridor), there is 242,724 square feet of available commercial space, and the average time on the market is about three years. There are two very large buildings on the corridor that are currently vacant. In addition, a number of property owners in the Charleston DCC have decided to no longer market their commercial properties because vacancy is so high. Ms. Satter pointed out that the commercial area in the Manette Neighborhood Center is minimal, and only a small component of commercial use remains. There are some underutilized properties, but not a lot of vacancy. The intent is to maintain the mixed-use requirement in the Manette Neighborhood Center. That means residential uses simply have to be secondary uses. A developer is required to do some component of residential but have some differentiation between the commercial and residential uses. Ms. Satter explained that developers have voiced concern about the City's negative absorption rate for commercial space. It's all about supply and demand. If more supply is added without additional people to use the supply, the supply will continue upward, the demand will stay the same, and the absorption rate will continue to worsen. Because the absorption rate is getting worse, it may not be appropriate for the City to require developers to build more commercial square footage. Ms. Satter recalled that the Commission previously asked if staff could identify a threshold for when the exemption should be removed. She explained that it would be difficult to add a specific threshold in the code. Another option would be for staff to do an annual analysis of the market trends and present the findings to the Planning Commission. When market trends change, staff will propose that the exemption should be removed. In conclusion, Ms. Satter recommended approval of amendments to the DCC code to allow flexibility for ground floor commercial uses to come at a later date. However, she recommended against allowing the exception in the Manette -Bremerton. Planning. Commission Minutes May 21, 2018 — Page 2 of 7 Attachment Neighborhood Center. She also recommended approval of the amendment that reduces the required linear footage of commercial space in the DCCs from 65% to 50% to be consistent with the Downtown Subarea Plan. Chair Tift opened the floor for public comment on the proposed amendment, but no one indicated a desire to participate and the public portion of the hearing was closed. Commissioner Nerf referred to the illustrations staff provided for future changes to the Fairfield Inn and commented that having patios overlooking the parking lot seems odd and could become an attractive nuisance for those who live in the units. Ms. Satter responded that the applicant recommended the individual patios and actually owns the parking lot, too. Landscaping will be added, as well. Commissioner Nerf asked for more information about how the conversion from residential to commercial might take place once the market changes. Ms. Satter said the conversion could be done piecemeal or all at one time. The City would support either approach. However, there would be no timeline for requiring the change to occur. Commissioner Jones asked if any businesses have indicated a desire to locate in mixed use (commercial/residential) development. Ms. Satter replied that most businesses are looking to locate where it is least costly and works the best. Because of the current market situation, most prospective tenants are looking for landlords to do all of the necessary improvements. Director Spencer added that the developers adjacent to the Roxy Theater on 41 street did not originally plan to purchase the properties and develop them into housing units because they thought mixed-use was an absolute requirement that was non- negotiable. If it weren't for this provision in the Downtown Subarea Plan, none of the development on 41 Street would be happening right now. Staff has heard from developers about how this flexible tool is useful and why it should be implemented in other DCCs to inspire more development and investment opportunities. Commissioner Jones said she supports anything that can encourage new development to replace existing buildings that are eyesores now. New construction is good for progress. Commissioner Davis announced that several properties in the Callow DCC (District Center Core) are currently under contract, as is the old Glass Emporium across the street. He referred to Commissioner Nerf's comment about the screened patios on the proposed new residential units and noted that the 400 Building already has this amenity. While it is not an optimal situation, it is not a huge problem, either. Commissioner Davis said he is in favor of eliminating roadblocks to redevelopment. He said Director Spencer provided an excellent example using the new development on 41' Street. Having a similar, less -restrictive provision in the DCCs may attract additional commercial and residential development, both of which are critically needed in these areas that are close to shopping and mass transit. The proposed amendments are a step in the right direction and not unlike the action the Planning Commission took three years ago to remove some very restrictive codes in the Wheaton/Riddell and Wheaton/Sheridan DCCs. Having a component of review based on market makes the provision very flexible and right -sized for the community.. Commissioner Pedersen said he hopes that reducing the commercial component from 65% to 50% will spur a lot of development. He asked if staff considered a greater reduction to perhaps 40% or 35%. Ms. Satter reiterated that the proposed amendment would allow the commercial space requirement to be reduced to zero in the DCCs. However, the idea is that at least 50% of the linear frontage would be designed and constructed so it could be converted to commercial square footage at some point in the future. Commissioner Conley asked how the term "pedestrian oriented" is defined. Ms. Satter said this term is left grey to allow flexibility for applicants to work with staff to identify the best way to obtain a connection between the building entrance and the sidewalk. The idea is to provide amenities and improvements that bring pedestrians into the businesses. Vice Chair Wofford asked if property owners would be required to convert from residential to commercial within a specified time if and when the market changes. Ms. Satter said there would be no specific timeline. The conversion timeline would be left to the developer to decide based on when the market changes and it becomes more profitable to have commercial space. Bremerton Planning Commission Minutes May 21, 2018 — Page 3 of 7 Attachment COMMISSIONER DAVIS MOVED THAT THE COMMISSION RECOMMEND THE CITY COUNCIL ADOPT THE TEXT AMENDMENTS TO BMC 20.62 AS DETAILED IN THE HANDOUTS PROVIDED AT THE MEETING, BASED UPON THE STAFF REPORT AND THE FINDINGS AND CONCLUSIONS PRESENTED IN ATTACHMENT B. COMMISSIONER CONLEY SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. Public Workshop: Comprehensive Plan Amendments for 2018 Ms. Satter said the purpose of this meeting is to introduce the 2018 Comprehensive Plan amendments and solicit feedback from the Commissioners. She reminded them that, as per BMC 20.10, all of the Comprehensive Plan amendments must be reviewed concurrently to assess their cumulative effect on the City and environment. If the amendment is not intended to correct an error, it must meet the following criteria: compliance with the Growth Management Act (GMA), consistent with other Comprehensive Plan policies and plans, compatible with existing or planned land use and the surrounding development pattern and will not adversely affect the City's ability to provide urban services and bears reasonable relationship to benefitting the public health, safety and welfare. She added that the City Council can choose to approve, deny or modify the Planning Commission's recommendation, but the recommendation does weigh heavily on the City Council's decision. Ms. Satter noted that Amendments 1 through 5 have been proposed by staff, and Amendment 6 was proposed by a citizen. She reviewed the amendments as follows: • Amendment 1 — Downtown Subarea Plan. The Downtown Subarea Plan is the planning document that contains all of the policies and development standards for the properties within the Downtown Regional Center boundaries. The proposed amendments will address the following concerns: o Parking. The City Council has specifically asked the staff and Planning Commission to review the existing parking standards and provide direction on what standard is best for the area. The focus of the amendment will be parking standards for development on private property. However, there is also a parking study in progress related to on -street parking, and the outcome of the study could impact the private property parking standards, too. o Design Review Board. Staff would like to provide clarification to the Design Review Board process, which only applies to development in the Downtown Subarea that has over 5,000 square feet of commercial space or more than 4 residential units. As people seek to convert existing commercial space to residential units, questions have been raised about whether or not Design Review Board approval is needed. Staff intends to propose an amended process for the Commission's consideration and share some of the lessons learned from the current process. o Consistency in Warren Avenue Corridor. Currently, the Comprehensive Plan states that residential uses are secondary to commercial uses in this area, but the code allows residential as an outright permitted use. Staff will review the current provisions and policies to help identify potential zoning code amendments for the corridor. Amendment 2 — Puget Sound Industrial Center (PSIC)-Bremerton Subarea Plan. As staff has worked with the plan, the complicated question has come up about whether or not gravel surfaces are allowed for parking, etc. Currently, the code requires that all areas for loading, parking and maneuvering motorized vehicles must be paved, but this may not be appropriate in the industrial area. She noted that the property adjacent to the PSIC-Bremerton in Kitsap County is completely graveled. Staff will research the idea of allowing gravel paving in the subarea under specific circumstances. It will be important to understand that the intent of the current requirement is to promote an urban character throughout the City and to encourage longevity of City infrastructure. Staff will consider additional policies in the subarea plan to address the use of gravel and then seek feedback from the City's Public Works and Utilities Departments, the Port of Bremerton and industrial businesses about why allowing gravel lots is or is not a good idea. • Amendment 3 — Kitsap County Equivalence Table. This amendment would update the Kitsap County Equivalence Table to be consistent with Kitsap County Land Use Designations. The Comprehensive Plan was updated in 2016 to include a tool that helped with annexation. Absent this tool or chart, current annexation law requires that commercial and residential properties be annexed at the lowest possible designation, which is low-density residential. The City worked Bremerton Planning Commission Minutes May 21, 2018 — Page 4 of 7 Attachment with Kitsap County to create the Equivalence Table, but some land uses were not included. This has not been an issue, but the intent is to correct the problem so the City is prepared when annexation does occur. Staff will update the table to ensure that the most compatible land use designations are appropriately identified and then seek feedback from Kitsap County to verify the table is correct. Amendment 4 —Revise Land Use Map. This proposed amendment would revise the land use designation for City -owned property at 3027 Olympus from General Commercial (GC) to Neighborhood Business (NB). The property is currently used by the City's Public Works Department. When the property was rezoned in 2016, the Commission determined that GC was the appropriate designation. However, residents of the surrounding neighborhood raised concern about how the property might be developed if the City were to sell it to a private developer. Staff will review the surrounding Kitsap County and City land use designations and development in the area. They will consider testimony provided in the previous workshop in May of 2017 and seek further outreach from the neighborhood. They will also consider the intent of the GC and NB designations to determine the most appropriate designation. Amendment 5 — Revise Land Use Map. This proposed amendment would revise the land use designation for four parcels along Arsenal Way and Marion from Neighborhood Business (NB) to General Commercial (GC). The site is currently developed as a strip mall and the former Perl's Dancehall. The current owners are concerned that NB zoning limits development to 15,000 square foot buildings. It has been suggested that NB zoning is incompatible with the adjacent property in Kitsap County that is zoned for high-intensity commercial uses. Staff will reach out to the property owners and surrounding neighbors for feedback and review surrounding Kitsap County and City land use designations in the area. They will also review the intent of the GC and NB designations to determine the most appropriate designation. Amendment 6 — Revise Land Use Map. This amendment is a citizen request to allow residential uses within the Freeway Corridor (FC) land use designation, at a minimum, for his four properties. The intent of the FC land use designation is for commercial activities that will typically be region -serving in nature and scale and benefit from high visibility from freeways serving the area. FC is also intended to provide large areas of parking and may include large-scale structures and/or outdoor display and storage areas. Typically, residential uses are not compatible with this type of zoning, and that is why residential uses are currently prohibited. The request would require a new policy to allow residential uses based on certain criteria. This may require an overlay on the land use map, as well. Staff advised the applicant that a request to rezone the properties would be considered "spot zoning" and they would likely recommend denial. As an alternative, staff is suggesting the Commission discuss the idea of expanding the boundary of the subject area. This would require notification and outreach to involve a number of additional property owners in the discussion. Director Spencer pointed out that most of the current development along this strip does not meet the intent of the FC land use designation. These properties have a very unique circumstance that would not be applicable to the other FC locations. That is why staff believes it appropriate to look at the request more broadly. Ms. Satter advised that, if the Commission indicates a desire to expand the amendment to include a larger area, staff plans to reach out to property owners and surrounding neighbors for feedback. They will also review surrounding land use designations and development in the area, as well as the intent of the FC designation to consider how residential uses could or could not fit and what mitigation might be required. In addition, they will consider the City's need for more affordable and quality housing options. Ms. Satter advised that, moving forward, staff will continue with research and public outreach via posting on sites and letters to neighbors. They will schedule workshops with the Commission to discuss the proposals throughout the summer and complete an Environmental/Cumulative Impact Review. A public hearing before the Planning Commission is anticipated in September or October, with a hearing before the City Council in November or December. Chair Tift opened the floor for public comments regarding the proposed amendments. George Skurtu, Bremerton, said he has lived in the City for most of his life. He referred to Amendment 5, which would change the land use designation for four parcels along Arsenal Way and Marion from Neighborhood Business (NB) to General Commercial (GC). As per BMC 20.62, GC zoning would allow for townhomes and/or multi -family structures. He said he supports the rezone, which would allow for the existing dilapidated buildings on the four properties to be replaced with 34 to 40 townhomes or multi -family residential units. Not only would this provide options for affordable housing, it would also increase the City's tax base and the potential return on investment for a developer. He said he is working to put together a Bremerton Planning Commission Minutes May 21, 2018 — Page 5 of 7 Attachment syndication to make all of this happen, and he would like the property to be rezoned to allow for multi -family residential development right off the highway and adjacent to the Navy base. There were no other public comments, and Chair Tift closed the public portion of the meeting. Because the City does not like making prescriptive changes to parts of a zone, Commissioner Davis asked if Amendment 6 might be a topic for a FC -2 zone that is completely different than the FC zone. One would be expressly commercial and the other would be more mixed-use and slightly less draconian. Ms. Satter said staff is thinking about an overlay, but she agreed that Commissioner Davis' concept should be considered, as well. Commissioner Davis expressed his belief that the current NB designation for the properties on Arsenal Way (Amendment 5) is keeping the property from being redeveloped. The representatives of the property have gone through a lot of work to make it commercially viable, and NB is not really the highest and best use for that site. In the process of redefining the land use designation, he would like to see any development of the site to require some traffic calming on both Marion and Constitution Streets, especially atshift changes. Commissioner Davis asked if the property associated with Amendment 4 includes the reservoir, and Ms. Satter answered affirmatively. Commissioner Davis pointed out that, like the Fire Department, the reservoir would be expressly exempt due to its nature. Ms. Satter said both the GC and NB land uses allow for public facilities. Commissioner Nerf said he drove by the property that is the subject of Amendment 5. As you approach the property, it appears to be a residential area with a large number of trees. He reminded the Commission that it has spent a fair amount of time discussing the concern that there is too much commercial property in the City. He is in favor of considering the property for multi -family residential rather than commercial uses. Director Spencer cautioned that the County has some very intensive commercial designations in the close vicinity, so the surrounding properties may look much different if they are developed as the County has identified. Vice Chair Wofford referred to Amendment 2 and said he is concerned about how a site might be impacted if a spill occurs on a gravel parking lot or driveway. He asked if there would be specific requirements in place to address this concern. Ms. Satter said the Stormwater Manual would manage these situations and specific requirements would apply. She agreed to address this concern further and report back to the Commission. Chair Tift referred to Amendment 5 and asked if Commissioner Davis has heard of interest in redeveloping the property if it were GC versus its current NB designation. Commissioner Davis said his reference point was speaking to the commercial realtor that is representing the property and the amount of work he and his group had to go through to clean the property up. Ms. Satter asked the Commission to provide feedback on the concept of extending the boundary area for the properties included in Amendment 6. The Commissioners indicated general consensus for this approach. Commissioner Davis voiced support for expanding the boundaries for the amendment as proposed by staff, with the exception of the southern corner property, which is currently occupied by Heuss Granite. He reminded the Commission that the FC land use designation is intended to support businesses along the freeway, and this property is located right along the exit to Highway 3. He did not believe that residential development would be appropriate for this one property. Director Spencer suggested that the property remain as part of the larger area boundary, allowing staff to do public outreach and solicit input. They can always reduce the boundary, but it is much more difficult to increase it after the public process has started. While she understands the concern, she would rather involve all of the property owners in the discussion. BUSINESS MEETING Chair Re�Lort At the request of Chair Tift, newly appointed Commissioner Pedersen introduced himself to the Commission. Bremerton Planning Commission Minutes May 21, 2018 — Page 6 of 7 Attachment Director Report Director Spencer welcomed Commissioner Pedersen to the Commission. Director Spencer reported that permit activity is high and staff is very busy. In April of 2017, permits reached a value of over $3 million, which was a watershed moment, itself. However, in April 2018, permit value reached almost $6 million. Director Spencer advised that, this year, governors from throughout the United States had a chance to designate certain census tracts as "opportunity zones," which are places where investments can occur tax deferred for a period of 10 years. The City of Bremerton submitted several applications, and the Downtown Census Tract was chosen by Governor Inslee as one he wanted to move forward. This is great news because it will allow for investments in projects to help them pencil out faster. A lot of permits and land use approvals have come along and are nearly shovel ready for these kinds of investments. Director Spencer reported that the City recently hired a new staff member for code enforcement. This year, the City Council funded this additional position so the City can implement proactive code enforcement. The new person will start on May 231 They are also in the process of recruiting for an additional building inspector because of increased permit activity. Interviews were conducted last week, and they hope to make an offer later in the week. With that, the department will be fully staffed. She thanked the Commissioners for their support. Old Business There was no old business. New Business Commissioner Conley announced that he has been transferred and will be leaving the area in September. He will have to tender his resignation at that point. ADJOURNMENT The meeting was adjourned at 7:03 p.m. Respectively Submitted by: Rid"'T& , Chai' Planning Commis on Bremerton Planning Commission Minutes May 21, 2018 — Page 7 of 7 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 20.70 of the Bremerton Municipal Code entitled "District Center Core" related to providing flexibility for phased -in mixed use development. WHEREAS, through practical use and application of the Zoning Code the need for modification has been identified; and WHEREAS, the City of Bremerton has established a procedure for amending the Zoning Code in Title 20.18.020(d) of the Bremerton Municipal Code ("BMC"), which requires amendments to the Zoning Code to be both consistent with the goals and policies of the Comprehensive Plan and to be consistent with other applicable rules and regulations; and WHEREAS, these amendments are consistent with the City's Comprehensive Plan, County Wide Planning Policies, the State Growth Management Act, and other applicable regulations and ordinances; and WHEREAS, on March 19, 2018, the Planning Commission conducted a workshop on the proposed amendments; and WHEREAS, on April 30, 2018, the proposed Zoning Code amendments were circulated to the State Agencies for the requisite review and comment period; and WHEREAS, on April 24, 2018, a State Environmental Policy Act ("SEPA") Determination of Nonsignificance ("DNS") was issued for the proposed action and no appeals were filed; and WHEREAS, on May 5, 2018, the public was notified by a legal advertisement in the Kitsap Sun of the opportunity to make comment and participate in the public hearing held by the Planning Commission; and WHEREAS, on May 21, 2018, the Planning Commission conducted a public hearing on the Zoning Code amendments and formulated a recommendation to forward the amendments for City Council consideration; and WHEREAS, on July 14, 2018, the public was notified by a legal advertisement in the Kitsap Sun of the opportunity to make comment and participate in the public hearing by the City Council; and WHEREAS, on August 1, 2018, the City Council conducted a public hearing and considered all testimony prior to their decision; NOW THEREFORE, Chapter 20.70 BMC Updates THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION]. The findings and conclusions adopted by the Planning Commission attached hereto as Exhibit A are adopted and incorporated as if set forth herein in full. SECTION2. Chapter 20.42 of the Bremerton Municipal Code entitled "Definitions" is hereby amended by amending Subsection 20.42.040(p) to read as follows: 20.42.040 Definitions. (p) Definitions "p": "Parcel" means a continuous quantity of land in single ownership or under single control, consisting of one (1) or more lots, and considered a unit for purposes of development. (See "Lot.") "Park," "playground" and "open space" means a site designed, developed, or reserved for recreational use by the public, such as play areas, community gardens and natural areas. "Parking, satellite" means a parking lot containing parking stalls required for a permitted land use which conforms to BMC 20.48.220. "Parking, structure" means a parking lot in which parking stalls are located either below grade, or in a multilevel building structure. "Paved surface" means a surface paved with asphalt, concrete, concrete pavers, brick or similar durable materials. Low -impact development technologies which provide a hard surface while allowing for water penetration shall be classified as paved areas. Paved areas do not include gravel, crushed rock, and similar nonbound materials. "Pedestrian -oriented" means development designed with an emphasis primarily focused on pedestrian access from the street and sidewalks rather than vehicle -dominant design._In general, buildings are placed close to the street and the main entrance(s) is oriented to the street sidewalk and generally includes windows or display cases along building facades which face the street or pedestrian areas. "Personal service" means an establishment engaged primarily in providing services involving the care of a person, apparel or minor appliances, such as: shoe repairs, laundry and dry-cleaning, beauty and barber shops, clothing/costume rental, tanning, other personal grooming facilities and domestic assistance services, and personal computing device or cellular phone repairs. This does not include massage parlors, health care services, exercise establishments, nor funeral services. "Physical fitness and health club" means an establishment primarily engaged in providing facilities for indoor physical fitness activities and recreation. Physical fitness and health clubs may include such facilities as gymnasiums, swimming pools, and ball courts. "Pole sign" means a freestanding sign supported by uprights or braces wherein the width of the uprights or braces comprises less than forty (40) percent of the width of the sign face. "Porch" means a roofed open area attached to a building or other structure, usually at an entrance to the structure. A porch that is enclosed, glazed or screened may lose its status as an appurtenance. "Portable sign" means any sign designed to be moved easily and not permanently affixed to the ground or to a structure or building. A -frame or sandwich board signs, movable readerboard signs, and signs that are mounted, attached or painted on a trailer, boat or motor 2 Chapter 20.70 BMC Updates vehicle which is parked, stored or displayed conspicuously in a manner intended to attract the attention of the public are examples. "Premises" means contiguous land in the same ownership or control not divided by a street or public right-of-way. "Private club or lodge" means structures, facilities and grounds owned or operated by a private or fraternal organization for use by its members and guests. "Projecting sign" means a sign, other than a wall sign, which is attached to and projects from a structure or building facade and the face(s) of which is not parallel to the building's facade. This sign may be supported by a structure in addition to its building or wall support. "Public administration" means services and facilities operated by public agencies and serving a community need, and generally including staffed facilities or office spaces. These include government offices, post offices, satellite police and fire station, and other public buildings. "Public distribution/transmission facility" means the infrastructure lines and connections employed in the delivery and conveyance of utility services. Distribution facilities include equipment such as pipes, wires, cables and similar equipment necessary for delivering utilities including water, sewer, electricity, gas, broadband, and other services. Publicly owned utilities as well as privately owned utilities that serve the general public are included. (See also "Public utility facility.") "Public information/identification sign" means a sign intended solely to inform the public of events or activities of community interest, to identify the entrance to or exit from the City or a district or neighborhood within the City, and which does not include the advertising of any business, product or service of a commercial nature, nor any logo, symbol, or other indication of a commercial message or sponsorship. "Public services" means services provided for the benefit of the general public, including fire protection and suppression, law enforcement, public health, education, information, recreation, environmental protection, development assistance/permitting, etc. "Public utility facility" means facilities provided for the benefit of the general public related to infrastructure and utilities. These include structures and equipment such as transfer stations, substations, pumping stations, distribution mains, wells, and related utility facilities and the structures that house them. Publicly owned utilities as well as privately owned utilities that serve the general public are included. (See also "Public distribution facility.") SECTION 3. Chapter 20.70 of the Bremerton Municipal Code entitled "District Center Core (DCC)" is hereby amended by amending Section 20.70.060 entitled "Development Standards" to read as follows: 20.70.060 DEVELOPMENT STANDARDS. Lot development shall be in accordance with the following unless allowed for otherwise by law: (a) Maximum front yard setback: ten (10) feet. At least sixty-five (65) percent of a building's front facade shall meet the maximum front yard setback. The setback may be increased if the Director finds that such increase is the minimum necessary to facilitate a superior site design. In order to obtain approval for an increased setback, the applicant shall submit a written analysis establishing how the project facilitates superior site design, is the minimum necessary, is consistent with specific goals and policies within the Comprehensive Plan, and is 3 Chapter 20.70 BMC Updates compliant with all applicable sections of the BMC. The following list identifies examples of circumstances where increased setbacks may be found to be appropriate: (1) When the site includes more than one (1) street frontage; (2) To accommodate existing topography, utilities, or other physical site constraints that make compliance with the setback infeasible; (3) To accommodate phasing of infill development; (4) On sites that are significantly developed with existing legally established nonconforming uses or structures whereby strict code compliance will not facilitate effective circulation; or (5) For projects that in the opinion of the Director provide enhanced public amenities within the setback area which include, but are not limited to, the following: public plazas, increased landscaping, architectural features, improved pedestrian connections. (b) Side yard setback: zero (0) except when adjacent to the low or medium density residential zones (R-10 and R -10M) where a ten (10) to twenty (20) foot visual screen is required pursuant to BMC 20.50.050(b). (c) Rear yard setback: zero (0) except when adjacent to the low or medium density residential zones (R-10 and R -10M) where a ten (10) to twenty (20) foot visual screen is required pursuant to BMC 20.50.050(b). (d) There is no maximum density for residential use. (e) Maximum building coverage: sixty (60) percent base maximum; provided, that through the use of any combination of the following, building coverage may be increased up to eighty-five (85) percent maximum: (1) Projects containing mixed uses: ten (10) percent bonus. (2) Projects with a three (3) or four (4) story building: ten (10) percent bonus; projects with five (5) or more story building: fifteen (15) percent bonus. (3) Projects providing a pedestrian -oriented plaza or area of at least one hundred fifty (150) square feet along a pedestrian walkway at an intersection corner, bus stop or other key pedestrian area approved by the City. Such areas shall contain seating for at least four (4) people, a trash receptacle and three (3) or more of the following: a pedestrian shelter, a drinking fountain, a bike rack, pedestrian -scale lights, pavers on the walkway surfaces, a kiosk, a street vendor station providing food or beverages, trees, an appropriately sized statue or sculpture, or a public restroom. Interior courtyards with these amenities qualify if they would be readily apparent and accessible to pedestrians on adjoining sidewalks: twenty (20) percent bonus. (4) Projects providing a through -block corridor that facilitates pedestrian access in a location approved by the City: five (5) percent bonus. (5) Projects providing at least fifty (50) percent of their required parking underground or within the building: twenty (20) percent bonus. (f) Maximum development coverage: maximum development coverage by impervious surfaces, seventy-five (75) percent; provided, that through the use of any combination of the mechanisms listed in subsections (e)(1) through (5) of this section, up to ninety-five (95) percent maximum development coverage may be allowed. (g) Maximum building height: eighty (80) feet except: (1) Structures within fifty (50) linear feet of parcels zoned for low density residential shall not exceed four (4) stories in height; and (2) Structures within fifty (50) and one hundred (100) linear feet of parcels zoned for low density residential shall include architectural features to gradually transition the .19 Chapter 20.70 BMC Updates building height from four (4) stories to a maximum height of eighty (80) feet at the one hundred (100) foot distance from the low density residential zoned parcel. (h) Mixed -Use Requirement. All structures that include residential uses located adjacent to, are oriented towards, or are viewable from a public right-of-way (not required on private streets) shall provide retail/commercial uses along a minimum of six: -y rave (65) fifty 50 percent of the ground floor building facade. , b0th f ^ tageS fWif g ^ P41i6 Fight of way. Exceptions to this requirement will be made for projects that comply with BMC 20.70.070(a)(-34(6). SECTION 4. Chapter 20.70 of the Bremerton Municipal Code entitled "District Center Core (DCC)" is hereby amended by amending Section 20.70.070 entitled "Design Standards" to read as follows: 20.70.070 DESIGN STANDARDS. The following design standards shall be applied to all new structures and redeveloped structures. Residential development of three (3) units or fewer are exempt from this section. When development involves the remodel or expansion of existing structures, the Director may modify these requirements to reasonably fit the scope and scale of the remodel or expansion. (a) Primary Design Features. The following criteria shall be applied to all primary building facades and facades facing public streets: (1) Top and Base. Buildings shall convey a visually distinct base and top. A "base" can be emphasized by a different masonry pattern, more architectural detail, visible plinth above which the wall rises, storefront, canopies, or a combination. The top edge is highlighted by a prominent cornice, projecting parapet or other architectural element that creates a shadow line. (2) Orientation. All properties adjacent to a public right-of-way shall orient structures toward the primary street. Properties located at intersections should orient their structures toward the intersecting corner. (3) Minimum Transparency. At least sixty (60) percent of all facades facing the public sidewalk, or sidewalks providing circulation within a site, measured to eight (8) feet above the sidewalk or surface grade, shall be comprised of transparent windows or doors. (4) Blank Facades. Building facades shall not present a blank facade to view from public rights-of-way, common parking areas, or residential properties. Such facades may be broken by windows, trellises, columns, variations in plane, or other devices that add variation and interest to the facade. (5) Mechanical Equipment Screening. Rooftop and ground -level mechanical equipment shall be screened from view from public streets. Screening materials shall be architecturally similar to the primary structure. (6) Ground -floor. . Ground -floor frontage of a structure facing a public right-of-way must conform to either subsection (i) or (ii) below, except as provided in subsection (iii): Chapter 20.70 BMC Updates (i) Constructed for Pedestrian Oriented uses. At least fifty (50) percent of the floor area abutting the linear sidewalk level shall be designed and constructed for "pedestrian oriented" uses. (ii) Constructed for Future Pedestrian Oriented uses. At least fifty (50) percent of the floor area abutting the linear sidewalk level shall be designed and constructed to accommodate potential future conversion to "pedestrian oriented" uses and may be occupied by anypermitted in BMC 20.70.020. The areas designed and constructed to accommodate future conversion shall meet the following standard, in addition to any other required design standards: The sidewalk level facade must include an entrance or entrances to accommodate a single or multiple tenants or be structurally designed so entrances can be added when converted to the building uses listed in BMC 20.70.020. (iii) Exception: For structures that abut two or more public right-of- ways and contains topography or other site constraints that would make the placement of the pedestrian oriented use on the ground floor difficult for the public to utilize, the pedestrian -oriented requirement in (i) and (ii) may be reduced to one (1) street frontage. (b) Secondary Design Features. Four (4) secondary design features are required from the following list: (1) Multiple Roof Lines. Structures shall have at least three (3) horizontal roof lines, as viewed from the front facade. (2) Modulation. The horizontal plane of a structure shall not extend for more than thirty (30) feet, as measured from any one (1) point of the structure, without a significant architectural variation of at least two (2) feet in depth. (3) Facade Materials. At least three (3) different facade materials shall be incorporated into the exterior appearance of the structure (wood, brick, stucco, tile, shingles, other). (4) Additional Transparency. An additional fifteen (15) percent transparency to what is required per subsection (a)(3) of this section. (5) Weather Protection. Recessed or protruding building features, of no less than four (4) feet in depth, which extend along at least fifty (50) percent of the front facade. (6) Main Entry. Pedestrian entrances are preferred from buildings facing the street. Entries shall be easily identifiable from the street or sidewalk; this can be accomplished through architectural or ornamental features. (7) Public Amenity. Outdoor eating area, artwork, street furniture, plantings in window boxes, public trash receptacles, or other alternative public amenity approved by the Director. Any proposed amenity shall be architecturally compatible with the principal structure. Any approved amenity shall be maintained for the life of the project. SECTION 5. 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 6. 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. rol Chapter 20.70 BMC Updates PASSED by the City Council the day of ERIC YOUNGER, Council President Approved this day of , 2018. ATTEST: ANGELA WOODS, City Clerk PUBLISHED the day of EFFECTIVE the day of ORDINANCE NO. GREG WHEELER, Mayor APPROVED AS TO FORM: ROGER A. LUBOVICH, City Attorney 2018. 2018. R:\Le ag 1\Legal\Ordinances\Community Development\Chapter 20.70 BMC Code Amendments Final.docitypan moo, X20.70 nnnC; 7 Chapter 20.70 BMC Updates Exhibit A: Planning Commission Findings and Conclusions Exhibit A FINDINGS AND CONCLUSIONS OF THE CITY OF BREMERTON PLANNING COMMISSION Summary: The proposed amendments to the Bremerton Municipal Code related to flexibility for phased -in mixed use development with the District Center Core. I, FINDINGS OF FACT Project Description: The proposed amendment package includes revisions to Bremerton Municipal Code 20.70, District Center Core, as follows: (a) Correct citation in BMC 20.70.060 Development Standards to exception for phased -in mixed-use requirement; (b) Revise "Ground -floor" design standards per BMC 20.70.07(a)(6) to allow flexibility for phased -in mixed use development. 2. Procedural History: . 2.1 Planning Commission Workshops: March 19, 2018 2.2 Washington State Department Of Commerce Notice: April 30, 2018 2.3 SEPA Threshold Determination DNS: April 24, 2018 2.4 Notice of Public Hearing: May 5, 2018 2.5 Planning Commission Public Hearing: May 21, 2018 3. Public and Agency Comment: 3.1 At the workshop held on March 19, 2018, a public comment was offered by Kurt Wiest, Director of the Bremerton Housing Authority, who was in favor of any modifications which could increase housing supply and provide more housing options within the City. 3.2 At the Planning Commission Public Hearing on May 21, 2018, the following testimony was provided: sK , o 4. SEPA Determination: A Determination of Non -Significance was issued on April 24, 2018, to date no comments or appeals have been filed. 5. Consistency: Text amendments to Title 20 shall meet the decision criteria outlined in BMC 20.18.020(d). The Planning Commission may recommend, and the City Council may adopt or adopt with modifications, an amendment to Title 20 if the criteria outlined below are met. (1) It is consistent with the goals and policies of the comprehensive plan; Analysis: The proposed amendments continue to uphold the objectives and goals of the Comprehensive Plan, and implement the following policies: LU9(A): Designate neighborhoods, communities, and centers throughout the City and encourage the implementation of design guidelines for new development and redevelopment that complement the designated purpose and scale. L U2(A): In order to combat chronic vacancy experienced in select areas, the City should consider zoning regulations that promote occupancy for buildings that are experiencing prolong vacancy. LU2(B): Support flexible development regulations to allow transitions of uses over time. Exhibit A LU2(D):Provide development incentives and flexibility within regulations to encourage desirable design elements. LU1-Cen(A): Development regulations should encourage pedestrian oriented mixed-use design in Centers and address such issues as: (1) Locating buildings or features in the core of the Center at sidewalk edge, (2) Providing windows and other architectural features that foster pedestrian interest along street fronts, (3) Adopting sign standards that reflect pedestrian scale, (4) Encouraging and/or requiring architectural features that are of a scale and type appropriate for viewing by pedestrians at the building front and immediately nearby, and (5) Development projects should be encouraged to provide amenities such as street fumiture, street trees, small public spaces and plazas, etc. LU1-Cen(E): Consider the existing built environment when creating development regulations. LU2-Cen(C): Provide incentives and flexibility that encourage and enable development in Centers. ED2(B): Ensure new development promotes street level activation to encourage walkability and social interaction through site and fagade design, including but not limited to the following. Design standards should be required for new commercial structures, especially in Centers, that ensure buildings and site layouts are designed with a focus on pedestrian scale such as intersection anchoring, strategically locating parking to the rear of structures, recognizable access ways, promotion of weather protection etc. n Promote the use of the design review board to ensure aesthetic quality, pedestrian scale of new buildings, and flexibility of development standards within the Downtown Regional Center for both new construction and substantial remodel of existing structures. (2) It does not conflict with other City, state and federal codes, regulations and ordinances. Analysis: The proposed amendments do not conflict with any other regulations. To ensure the City continues having a balance of housing and employment opportunities as identified within the Comprehensive Plan, an annual status report on commercial growth/development will be presented to the Planning Commission to monitor if this exception is still needed. II. CONCLUSIONS & RECOMMENDATION Based on the findings above, the Planning Commission concludes that the proposed amendments to the Bremerton Municipal Code Title 20 Land Use Chapter, meets the requirements in BMC 20.18.020(d) text amendments, and therefore recommends to the City Council, the adoption of amendments to Title 20. tf ly submitted by: L. S enc cecutive Secretary Ric ar . Ti , PI nning Commission Chair ►. General Council Business Item C July 25, 2018 C3 — Lodging Tax Advisory Committee Briefing C4 — Other General Council Business BREMERTON LODGING TAx ADVISORY COMMITTEE FY 2019 REQUESTS FOR FUNDING Name of Organization Request Recommendation City of Bremerton Kitsap Conference Center $200,000 $75,000 Bremerton Historic Ships Association $79,000 $70,000 Visit Kitsap Peninsula $45,000 & $75,500 $45,000 Washington State Science & Engineering Fair $45,000 $43,000 Bremerton Chamber of Commerce $38,000 $30,000 Roxy Bremerton Foundation $33,000 $30,000 Kitsap Entrepreneurial Center Kitsap Harbor Festival $40,000 $25,000 Downtown Bremerton Association WayzGoose Kitsap $30,000 $23,000 Downtown Bremerton Association $50,000 $20,000 Kitsap Historical Museum $26,600 $20,000 Bremerton Symphony Association $25,000 $20,000 City of Bremerton Quincy Square on 41" Street Project $25,000 $10,000 Manette Business Association Heavy Jeens Project $12,270 $9,000 Dominion Historical Workboat Association $15,000 $8,000 Kitsap Pride $6,500 $6,500 Collective Visions Gallery $2,500 $2,500 SUB TOTAL $748,370 $437,000 BEGINNING FUND BALANCE/RESERVE $13,000 GRAND TOTAL RECOMMENDED FY2019 ALLOCATIONS $450,000 "Does not include Kitsap Conference Center ($250,000) & Admiral Theatre ($150,000) Operations" Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Pagel of 6 Horne < ? Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENTRAL BUSINESS DISTRICT Sections: 16.16.010 Scope. 16.16-020 Administration. 16.16.030 Definitions. 16.16.040 General minimum maintenance requirements. 16.16.050 Vacant commercial space registration. 16.16.060 Window displays for commercial spaces not occupied for thirty days. 16.16.070 Fees for vacant commercial space registration. 16.16.080 Delinquent registration fees—Collection. 16.16.090 Duty to amend registration statement. 16.16.100 Inspections. 16.16.110 Enforcement. 16.16.120 Annual report. 16.16.010 Scope. The provisions of this chapter apply to all structures in the central business district (8-3 zone), unless otherwise stated. All responsible persons (as defined in Section 16.16.0301 shall comply with the requirements of this chapter. (Ord. 3127-09 § 1, 2009) 16.16.020 Administration. This chapter will be administered by the building official, who may adopt administrative rules and regulations consistent with its terms. The building official (and his designee), or code enforcement officers, or both are authorized to enforce this chapter. (Ord. 3127-09 § 2, 2009) 16.16.030 Definitions. For the purposes of this chapter: "Central business district' means the B-3 zone in the city of Everett as defined by the Everett zoning code, Title 19. http://Www.codenublishing,comp/WAIEverett/htmlipverettl6lEuere-tt .616.html 7/227/2018 Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Page 2 of 6 "City" means the city of Everett, its officers, employees, and agents. "Commercial space" means any portion of a structure in the central business district that is not intended for residential use. Occupied. A commercial space is considered occupied if a permitted, nonresidential use is physically located and lawfully operating in the space for at least six consecutive months. "Responsible person" means any person, firm, association, corporation or any agent thereof, owning, leasing, renting or having lawful possession of a structure in the central business district. "Vacant commercial space" means any portion of a street -level commercial space that; on or after September 1, 2009, is not occupied and has not been occupied during the preceding ninety days. (Ord. 3927-09 § 3, 2009) 16.16.040 General minimum maintenance requirements. Alf responsible persons shall perform the following with respect to each structure they own, lease, rent or lawfully possess: A. Maintain all exterior surfaces, including but not limited to doors, windows, door and window frames, cornices, porches, trim, balconies, decks, and fences, in good condition. B. Protect exterior wood surfaces, other than decay -resistant woods, from the elements and decay with paint or other protective covering or treatment. If protection of the surface is compromised. restore adequate protection within a reasonable time; for example, remove peeling, flaking or chipped paint and repaint the compromised surface. C. Cause all siding and masonry joints and joints between the building envelope and the perimeter of windows, doors, and skylights to be weather -resistant and watertight. D. Coat all metal surfaces subject to rust or corrosion, except those designed to be stabilized by oxidation, to inhibit rust and corrosion, after first stabilizing any existing rust and corrosion. Remove oxidation stains from exterior surfaces. E. Maintain all exterior walls free from moss, algae, dirt; grime, holes, breaks, and loose or decaying materials. Weatherproof and properly coat the surface of all exterior walls when required to prevent deterioration. F. Maintain the roof and flashing of all structures so that they are sound, tight, free of moss, algae or defects that admit rain, attract pests or create a public nuisance. Maintain adequate roof drainage to prevent dampness and deterioration in the walls and inside the structure. Maintain roof drains, gutters, and downspouts in good repair and free from obstructions. (Ord. 3127-09 § 4. 2009) 16.16.050 Vacant commercial space registration. A. At least one responsible person for each vacant commercial space must register that space with the city within 10 calendar days of the date the space becomes vacant commercial http:Hww-w.codepublishing.com/WA/Everett/htmUEverettl6fEverettl6l6.htmi 7/27/2018 Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Page 3 of 6 space, as that term is defined in Section 16.16.030, unless: 1. The space is the subject of a current, valid building permit for repair or rehabilitation and the responsible person provides proof, such as receipts, invoices or executed contracts, that the repair or rehabilitation is proceeding without significant delay; or 2. The space meets all applicable codes and regulations that apply to a permitted nonresidential use, and the responsible person is actively attempting to sell, lease, or rent the property (which is evidenced, in part, by appropriate signage); or 3. The property the commercial space is located on is the subject of a land use application for redevelopment for which approval has been granted, but building permits have yet to be issued. B. A space will be considered to be registered on the date the city receives, on a form provided by the building official and properly completed and signed by a responsible person, the following information: I. The street address and parcel number of the vacant commercial space; The name, address, and daytime and evening telephone numbers of each responsible person for the vacant commercial space, including any owner or tenant; 3. The period of time the vacant commercial space is expected to remain vacant; 4. Any other information requested by the building official for the administration of this chapter. C. For every registered vacant commercial space, a responsible person must record a notice that the space is registered with the city as a vacant commercial space with the Snohomish County auditor. The notice must be approved by the building official, and a copy of the recorded notice must be received by the city no later than thirty days from the date the space is registered. D. A responsible person must post the following notice inside every vacant commercial space so as to be clearly visible to all potential tenants, lessees, renters or buyers upon entering the space but not visible from outside the space: This Vacant Commercial Space is registered with the City of Everett. This Vacant Commercial Space may not meet all applicable codes and regulations, which may include codes and regulations required to occupy the space for a permitted use in the Central Business District. The Vacant Commercial Space was registered on [date] E. A responsible person must renew the registration of each vacant commercial space on or before January 1 st of each year that the space remains vacant. A responsible person must submit the renewal application to the city on forms provided by the building official. http://www.codepubIishing.corm/W,A,/Everett/htlnl/Everettl6/Everett? 616.html 7/27/2018 Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Page 4 of 6 F. Upon satisfactory proof to the building official that the vacant commercial space is occupied as defined in Section 16.16.030, the vacant commercial space will be unregistered. Proof of physical occupation may include; but is not limited to, usable furniture, office equipment, retail inventory or other equipment and inventory in the space that are consistent with the unit's intended use, and persons regularly present at and using the space for its intended use. Proof of physical occupancy must also include documentation, which may include, but is not limited to, a current, executed lease agreement, paid utility receipts reflecting payments for six consecutive months from the month the space is occupied, or valid state and local business licenses, federal income tax or city business and occupation tax statements indicating the subject space is the official business address of the person or business claiming occupancy. G. The determination of the number of vacant commercial spaces a structure contains will be at the reasonable discretion of the building official. (Ord. 3127-09 § 5.2009) 16.16.060 Window displays for commercial spaces not occupied for thirty days. When commercial space is unoccupied for more than thirty days, a responsible person must take steps to maintain a vibrant streetscape and avoid adverse impacts on neighborhood character by applying at least one of the following measures to all ground -floor windows that face sidewalks, streets, or public open space: A. Paint windows with visually appealing scenes depicting or suggesting business or cultural activities; B. Display works of art or provide other displays of cultural or educational value, using background panels or other methods to screen views from the street of the unoccupied space; C. Other measures consistent with these examples approved by the building official. (Ord. 3127-09 § 6. 2009) 16.16.070 Fees for vacant commercial space registration. A. At least one responsible person shall pay an annual registration fee for each registered vacant commercial space. At least one responsible person must pay the fee to the city at the time the space is registered and on .January 1 st of each year that the space remains vacant. The fee will be based on the duration of the vacancy as determined by the following scale: 1. Two hundred fifty dollars for each space vacant for less than one year; 2. Five hundred dollars for each space vacant for at least one year but less than two years; 3. Seven hundred fifty dollars for each space vacant for at least two years but less than three years; 4. One thousand dollars for each space vacant for at least three years and for each year thereafter until the building is occupied. B. The fees are intended to defray the costs of administering this section through Section 16.16.120 and may be changed by resolution of the council to meet these costs. (Ord. 3127-09 http://www.codepublishing.com/WA/Everett/html/Everettl6/Everettl6l6.html 7/27/2018 Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Page 5 of 6 § 7, 2009) 16.16.080 Delinquent registration fees—Collection. If a responsible person fails to pay the registration fee by the due date, the city is authorized to take action to collect the registration fee, including filing civil actions or turning the matter over to collection, in which case costs incurred by the city as a result of the collection process will be assessed to the responsible person or responsible persons in addition to the registration fee. (Ord. 3127-09 § 8, 2009) 16.16.090 Duty to amend registration statement. Responsible persons for any registered vacant commercial space shall advise the building official, in writing, of any changes to the information on the registration form within thirty days of the occurrence of the change. (Ord. 3127-09 § 9, 2009) 16.16.100 Inspections. The building official (and his designee), or code enforcement officers, or both are authorized to conduct inspections to enforce the provisions of this chapter. (Ord. 3127-09 § 10, 2009) 16.16.110 Enforcement. A. Enforcement of the provisions of this chapter will be performed in accordance with Chapter 1.20. B. No responsible person may violate or fail to comply with any provisions of this chapter. Each responsible person commits a separate offense for each and every day they commit, continue or permit a violation of any provision of this chapter. C. All responsible persons for a commercial space are jointly and severally responsible with respect to that commercial space for compliance with the provisions of this chapter and for any payments that they may be required to make to the city under this chapter. If the commercial space is subject to a lease, the city shall have discretion to determine whether to enforce this chapter against the commercial space owner, the tenant or both of them, but the city shall consider in this determination whether the lease provides that the compliance with this chapter is the responsibility of the commercial space owner or the tenant. (Ord. 3127-09 § 11, 2009) 16.16.120 Annual report. The building official shall make a report to the city council in January of every odd year on the status of the vacant commercial space registration program. (Ord. 3127-09 § 12, 2009) Horne > http://www.codeDublishing.com/wAJEverett/html/Everettl6/Everett1616.htm1 7/27/2018 Chapter 16.16 MAINTENANCE OF VACANT COMMERCIAL SPACE IN THE CENT... Page 6 of 6 The Everett Municipal Code is current through Ordinance 3604-18, passed May 16, 2018, Disclaimer: The City Clerk`s Office has the official version of the Everett Municipal Code. Users should contact the City Clerk's Office for ordinances passed subsequent to the ordinance cited above. City Website: httcs:fleverethYA--20v! City Telephone: (425) 257-8700 Code P Wishing Com an http://Ww-w.codepublishing.comfWA/Everett/html/Everetti 6/Everettl 616.html 7/27/2018 :E0[: Ir E I, A Move to authorize the City Attorney to file lawsuits seeking any relief necessary to abate reGurr�C.e nuisances and prevent their re8ec - -ence at the following properties: 1317 N. 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