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HomeMy WebLinkAbout05/08/2019 STUDY SESSION PACKET______________________________________________________________ CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280 MAY 8, 2019 CITY COUNCIL SPECIAL MEETING & STUDY SESSION 4:30 PM in COUNCIL CONFERENCE ROOM 603 The Special Meeting and Study Session are open to the public, but there will be no opportunities for input or participation; no action is anticipated; and the content of these items is subject to change. If approved by Council, the items will be placed on the May 15, 2019 Council Meeting Agenda: A.INFORMATION BRIEFING Update on Columbia Hospitality & Kitsap Conference Center at Bremerton Harborside – Brian Flaherty, Columbia Hospitality Chief Operating Officer; Lori Main, Kitsap Conference Center General Manager; and Daryl Matheny, Gold Mountain Golf Club General Manager B.BRIEFINGS ON AGENDA ITEMS – Approximately 5:15 PM 1.Confirm appointment of Kirsten Dahlquist to the Design Review Board Committee 2.Confirm Appointment of Jessica Arthur to the Lodging Tax Advisory Committee 3.Set Annual Compensation for Municipal Court Judge 4.Redflex Traffic Systems, Inc. for Photo Red Light Enforcement Program 5.Pollution Liability Insurance bound with Illinois Union Insurance Company for 2019 through 2021 6.Rental Agreement with Xylem, Inc. for Bypass Pumping at Pump Station CE-4 7.Interlocal Agreement with the Peninsula Regional Transportation Planning Organization 8.Complete Streets Grant Agreement with the WA State Transportation Improvement Board 9.Budget Amendments to the 2019 REET and Transportation Capital Funds; and Local Agency Professional Services Cost Plus Fixed Fee Consultant Agreement with KPFF for Design of the 6th Street Preservation Phase 1 and 2 Projects 10.Interlocal Agreement with the Kitsap Regional Coordinating Council (KRCC) C.GENERAL COUNCIL BUSINESS Review and Revise the Request for Proposal (RFP) Guidelines used by the Lodging Tax Advisory Committee (per 2019 City Council Goal #2) – President Younger Other General Council Business D.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. City Council Study Session May 8, 2019 2 In the beginning… Consistently voted one of the Best Places to Work in Washington by Puget Sound Business Journal, Seattle Business Magazine, and NWJobs.com 5 Columbia Hospitality Services ▪Centralized Accounting ▪Consulting/Advising ▪Operations ▪People & Culture ▪Marketing/Communications 6 Financial Results $1,062,488 $1,723,074 $1,192,755 $1,190,423 $1,267,969 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 2000000 2019 2018 2017 2016 2015 Revenue 2015-2019 7 Financial Results $4,598,053 $4,290,294 $4,152,890 $4,206,204 3800000 4000000 4200000 4400000 4600000 4800000 2018 2017 2016 2015 Revenue 2015-2018 $613,553 $579,947 $521,101 $488,209 0 100000 200000 300000 400000 500000 600000 700000 2018 2017 2016 2015 NOI Performance 2015-2018 Thank You! AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Kirsten Dahlquist to the Design Review Board Committee Study Session Date: 5/8/19 COUNCIL MEETING Date: 5/15/19 Department: Executive Presenter: Mayor Wheeler Phone: (360) 473-5266 SUMMARY: The Mayor is seeking confirmation for the appointment of Kirsten Dahlquist to the Design Review Board, Position 4. The term expires 12/31/20. ATTACHMENTS: Ms. Dahlquist’s application to the Board is available in the Mayor’s Office. FISCAL IMPACTS (Include Budgeted Amount): No Fiscal Impacts. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Briefing/Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Kirsten Dahlquist to the Design Review Board Position 4 for the term expiring 12/31/20. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B1 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Jessica Arthur to the Lodging Tax Advisory Committee Study Session Date: May 8, 2019 COUNCIL MEETING Date: May 15, 2019 Department: Executive Presenter: Mayor Wheeler Phone: (360) 473-5266 SUMMARY: RCW 67.28 requires at least two representatives from businesses that collect the hotel- motel tax to serve on the Lodging Tax Advisory Committee. There is a vacancy on the Lodging Tax Advisory Committee and the position is for a three-year term. The Mayor is seeking confirmation for the appointment of Jessica Arthur, General Manager for the Fairfield Inn & Suites by Marriott. The term expires May 14, 2022. ATTACHMENTS: Application of Jessica Arthur to the committee is available in the Mayor’s Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Jessica Arthur to the Lodging Tax Advisory Committee for the term expiring May 14, 2022. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/07/15 B2 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Set Annual Compensation for Study Session Date: May 8, 2019 Municipal Court Judge COUNCIL MEETING Date: May 15, 2019 Department: Municipal Court Presenter: Dawn Williams Phone: (360) 473-5242 SUMMARY: Pursuant to BMC 2.62.035(a), the Municipal Court Judge’s salary is set by City Council action. The City is authorized to receive Trial Court Improvement grant money if the Judge’s salary is set at 95% of the District Court Judge’s Salary, effective July 1 of each year. That salary is set, by law, by the Washington Citizen’s Commission on Salaries for Elected Officials. We are requesting to adjust the salary for the Judge to be effective July 1, 2019 to bring us into compliance with the grant conditions and allow us to continue to receive grant funding. Current salary $156,097.35, proposed new salary $172,753.70 as of July 1, 2019 and as of July 1, 2020 it will be $180,614.00 (these amounts include deferred compensation). ATTACHMENTS: Letter from the Administrative Office of the Courts regarding Salary Increase for Judges for 2019 and 2020. FISCAL IMPACTS (Include Budgeted Amount): For the 2019 budget cycle, the increase is $1,388.03 per month (total $8,328.17). STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to set the annual compensation of the Municipal Court Judge at $172,753.70 (including deferred compensation) effective July 1, 2019 and to set it at $180,614.00 effective July 1, 2020 (including deferred compensation). COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B3 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Renewal of Agreement with Study Session Date: May 8, 2019 Redflex Traffic Systems, Inc. for Photo Red Light Enforcement Program COUNCIL MEETING Date: May 15, 2019 Department: Police Presenter: Mike Davis Phone: (360) 473-5237 SUMMARY: Redflex Traffic Systems to provide photo enforcement and a school zone program which includes processing of infraction data and issuance of citations in nine locations across the city. The agreement includes two options to renew for periods of two years each. This modification is the exercise of the first, two-year renewal period. ATTACHMENTS: 2-year renewal notice FISCAL IMPACTS (Include Budgeted Amount): There is no change to the original contract amount. This contract is cost neutral with a fixed fee of $4,000 per month per camera location, with nine locations, but is capped at the gross receipts received by the City of Bremerton or the fee whichever is less. The program is within budget and included in the general fund. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve 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 B4 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Pollution Liability Insurance bound with Illinois Union Insurance Company for 2019 through 2021 Study Session Date: May 8, 2019 COUNCIL MEETING Date: May 15, 2019 Department: City Attorney’s Office – Risk Management Presenter: Melisa Vaal Folmer Phone: (360) 473-5302 SUMMARY: The Bremerton Municipal Code authorizes the Risk Management Specialist, with the approval of the City Attorney, to bind insurance coverage and requires City Council approval for the continuation of the bound coverage. Pollution Liability insurance coverage for 2019 through 2021 has been bound with Illinois Union Insurance Company. The premium for the two-year term of 2019 through 2021 is $77,164. This coverage is subject to a $100,000 self-insured retention per loss. ATTACHMENTS: None. FISCAL IMPACTS (Include Budgeted Amount): Adequate funds are available within the Risk Management Fund to procure this coverage. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the pollution liability insurance policy as bound with Illinois Union Insurance Company for 2019 through 2021. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B5 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Rental Agreement with Study Session Date: May 8, 2019 Xylem, Inc. for Bypass Pumping at Pump Station CE-4 COUNCIL MEETING Date: May 15, 2019 Department: PW&U Presenter: Rick Zimburean Phone: (360) 473-5449 SUMMARY: The Public Works Department is taking advantage of the Marina Square project to install a new sewer force main and also install a new, more direct discharge header in pump station CE-4. This work requires bypass pumping. The Department has arranged for bypass pumping with Godwin Pumps of Kent. The cost for the bypass pumping was expected to be less than the Department’s approval authority of $25,000. Complexities encountered during the discharge header work have extended the need for the bypass pumping, which is now expected to cost $31,625.81. ATTACHMENTS: 1) Agreement for charges 2) Sole Source Memo FISCAL IMPACTS (Include Budgeted Amount): Expenses for this work are budgeted for 2019 and funded from the Sewer Capital fund. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the rental agreement for bypass pumping at CE-4, 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 B6 MEMORANDUM Date: April 18, 2019 To: Procurement File From: Thomas Knuckey, PW&U Director Subject: Sole Source Determination ------------------------------------------------------------------------------------------------------------ In accordance with Bremerton Municipal Code 2.76.090, Sole Source Purchases, the purpose pf this memorandum is to document the necessity of sole source procurement methodology for the rental of a bypass pumping system from Godwin Pumps which is division of XYLEM, to support the relocation of the discharge forcemain at pump station CE-4. Bypass pumping of raw sewage is a technically complex and important service, with zero room for error. The City needs a bypass pump service provider that understands the complexities, provides 100% reliable equipment, and is responsive to all service needs at each unique site. We selected Godwin Pumps, as we were currently working with Godwin to provide a bypass pumping system at another station, and we needed a quick and reliable response and turnaround for the bypass pumping at pump station CE-4. During planned upgrades at pump stations we have primarily utilized Godwin Pumps for all of our bypass pumping needs, as they/we are very familiar with our expectations as well as our service requirements. We have previously utilized other vendors for bypass pumping, but they have fallen short of what we expect for service. Again, there is no room for error in providing this service. Therefore, it is my determination that it is in the City’s best interests to rent the pumps through direct negotiation, pursuant to BMC 2.76.090 and 2.76.010, and that sole source rental of the bypass pumping system from Godwin Pumps is justified for this procurement. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Interlocal Agreement Study Session Date: May 8, 2019 with the Peninsula Regional Transportation Planning Organization COUNCIL MEETING Date: May 15, 2019 Department: Public Works Presenter: Andrea Archer-Parsons Phone: (360) 473-2317 SUMMARY: The Peninsula Regional Transportation Planning Organization (PRTPO) was originally established in 1990 by Clallam, Jefferson, Mason, and Kitsap Counties. The PRTPO has undertaken an update to the Interlocal Agreement (ILA) to reflect statutory and regulatory changes and to address a change in the lead planning agency. WSDOT has been the lead planning agency from 1990, but notified PRTPO last summer that effective July 1, 2019 it will no longer fulfill that role; Kitsap Transit has agreed to become the new lead planning organization and Jefferson Transit will be the new fiscal agent. Execution of the ILA will retain Bremerton’s full voting rights for matters before the Executive Committee and our seat on the Technical Advisory Committee. ATTACHMENTS: Interlocal Agreement for the Peninsula Regional Transportation Planning Organization FISCAL IMPACTS (Include Budgeted Amount): There are no fiscal impacts. PRTPO does not charge membership fees. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Interlocal Agreement with the Peninsula Regional Transportation Planning Organization, 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 B7 Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 1 INTERLOCAL AGREEMENT for the PENINSULA REGIONAL TRANSPORTATION PLANNING ORGANIZATION THIS AGREEMENT is made and entered into by and between the undersigned public agencies to establish and jointly participate in the Peninsula Regional Transportation Planning Organization (PRTPO), pursuant to provisions of the Interlocal Cooperation Act of 1967, chapter 39.34 RCW, and the Growth Management Act, chapters 36.70A and 47.80 RCW. Recitals WHEREAS, the undersigned public agencies recognize the need and desirability to participate in a forum for cooperative decision making by elected officials of said agencies in order to implement a comprehensive regional transportation planning process; and WHEREAS, the undersigned public agencies adopt transportation plans; and WHEREAS, the Growth Management Act authorizes establishment of Regional Transportation Planning Organizations through the voluntary association of local governments within a county, or geographically contiguous counties; and WHEREAS, it is the belief of the undersigned public agencies that state and regional transportation planning should receive policy direction from all affected governments and special purpose districts and major employers; and WHEREAS, the undersigned public agencies are authorized and empowered to enter into this agreement pursuant to RCW 47.80.020 and chapter 39.34 RCW; and WHEREAS, the undersigned public agencies recognize that the Interlocal Agreement (ILA) establishing the PRTPO in 1990 needs to be reviewed and updated to conform to current law and practices, and that now is an opportune time given the impending change of the Lead Planning Agency. This 2019 ILA fully replaces and supersedes the 1990 ILA. NOW THEREFORE, in consideration of mutual promises and covenants herein it is hereby agreed: Agreement 1. Organization and Membership The Peninsula Regional Transportation Planning Organization (PRTPO), a separate legal entity, originally established in 1990 and hereby re-established, encompasses the territory physically lying within the counties of Clallam, Jefferson, Kitsap and Mason Counties as authorized by chapter 47.80 RCW and chapter 468-86 WAC. Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 2 Voting membership in the PRPTO shall be open to the following public agencies within the boundaries of the PRTPO: all county and city governments, all federally recognized tribes, all port districts organized under title 53 RCW, all transit districts organized under chapter 36.57A RCW, and the WSDOT Olympic Region. Current voting membership belongs to each of the public agencies who have executed this Agreement. New voting members may be added by the execution of this Agreement when approved by the Executive Board. Nonvoting membership is authorized and encouraged to facilitate cooperative regional transportation planning. Nonvoting membership shall be open to community organizations, employers and other public agencies that are not voting members. Nonvoting membership shall be as approved by the voting membership in accordance with the Bylaws. 2. Purpose and Authority The purpose of the PRTPO is to fulfill the legislature’s intent to have local jurisdictions, tribes, and the state come together for coordinated transportation planning and to have an interconnected and coordinated transportation system that achieves both statewide and local transportation goals. To accomplish these purposes, the PRTPO shall have the following authority and duties, as established by chapter 47.80 RCW: A. Provide a forum for cooperative decision making by the region's elected officials in order to bring about a continuous and comprehensive transportation planning process. B. Foster cooperation and collaboration among local, state and tribal governments throughout the region. C. Maintain an ongoing transportation strategy for the region and coordinate actions of local and state government so that we may make the best use of our land, air, water and energy resources and overcome the problems of waste and pollution. D. Develop and adopt a Regional Transportation Plan that is consistent with countywide planning policies, with county and city transportation plans, and with state transportation plans. E. Certify that transportation elements of comprehensive plans adopted by Clallam, Jefferson, and Mason Counties and cities therein are consistent with the Growth Management Act and with the PRTPO’s Regional Transportation Plan. Also, where appropriate, certify that their countywide planning policies adopted under RCW 36.70A.210 and the adopted Regional Transportation Plan are consistent. F. Develop a six-year Regional Transportation Improvement Program (RTIP) for areas within Clallam, Jefferson and Mason counties that proposes regionally significant transportation project and programs and transportation demand measures. Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 3 G. Develop a Coordinated Transit-Human Services Transportation Plan and include specific opportunities and projects aimed to advance special needs coordinated transportation. H. Designate and direct a lead planning agency to coordinate preparation of the Regional Transportation Plan and carry out other responsibilities of the PRTPO as set forth in the Bylaws. I. Provide assistance to others to develop level of services standards or alternative transportation performance measures and review those standards of GMA counties and cities to promote a consistent regional evaluation of transportation facilities and services. J. Foster and facilitate cooperation and coordination between other regional transportation planning organizations and metropolitan planning organizations. K. Foster transportation facilities which encourage economic growth and stability for the region. L. Provide assistance and information to public agencies in their preparation of local transportation plans. 3. Organization Structure The PRTPO shall have the following structure as set forth herein and as further described in the Bylaws. A. Executive Board. An Executive Board is hereby established to be the governing body of the PRTPO. All voting members shall have representation on the Executive Board as described in the Bylaws. B. Transportation Policy Board. A Transportation Policy Board is hereby established to provide policy advice to the Executive Board on regional transportation issues as provided by RCW 47.80.040. Composition of the Transportation Policy Board shall be determined as provided in the Bylaws. C. Technical Advisory Committee. A Technical Advisory Committee is hereby established to provide technical advice to the Executive Board on all matters that may come before the Board. Composition of the Technical Advisory Committee shall be determined as provided in the Bylaws. D. The Executive Board may establish other committees as needed to perform the duties of the PRTPO as provided in the Bylaws. // Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 4 4. Bylaws Bylaws shall be adopted to carry out the purpose and objectives set forth herein and shall, at a minimum, include schedules and rules for meetings as well as voting structures for the PRTPO and any board or committee thereof. The Bylaws shall initially be adopted by a majority vote of the total members of the organization and shall be amended as provided for in the Bylaws. 5. Lead Planning Agency The PRTPO shall designate a Lead Planning Agency to perform the duties required by chapter 47.80 RCW and such other duties as assigned by the Executive Board. The duties of the Lead Planning Agency shall include, but not be limited to, the following: provide staff support and coordination for the Executive Board, the Transportation Policy Board and the Technical Advisory Committee; hire, supervise and administer personnel, contractors and consultants as directed by the Executive Board; and provide such information, data, inventories and services as may be necessary to carry out the purposes of the PRTPO. 6. Fiscal Agent The PRTPO shall designate a Fiscal Agent to perform the financial duties as assigned by the Executive Board. These may include, but are not limited to, the collection and disbursement of funds for the purposes of the organization and the provision of information, data, and services as may be necessary to carry out the financial obligations of the PRTPO. At the Executive Board’s discretion, the Fiscal Agent may be the same entity as the Lead Planning Agency. 7. Financing The PRTPO shall be financed in a manner as provided for in the Bylaws and through such local, state, federal, and/or private funding as becomes available. The PRTPO, or the Lead Planning Agency on behalf of the organization, is authorized to apply for such federal, state or private funding of any nature as may become available to assist the PRTPO in carrying out its purposes and functions. 8. Budget The Lead Planning Agency shall develop a budget which will meet the anticipated expenses of the PRTPO for the coming budget year. The Lead Planning Agency shall submit the proposed budget to the Executive Board for review and comment. 9. Insurance The Executive Board shall procure insurance sufficient to provide adequate coverage for the obligations and liabilities of the PRTPO. // Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 5 10. Duration This Agreement is perpetual unless a member decides to withdraw from the PRTPO pursuant to Section 11 or the members agree to dissolve the PRTPO pursuant to Section 12 of this Agreement. 11. Withdrawal from the PRTPO Any member shall have the right to withdraw from the PRTPO and this agreement by giving six months written notice to the Executive Board. The remaining members agree that such withdrawal will not absolve them of responsibility for meeting financial and other obligations of annual contracts or agreements of the PRTPO. Further, such withdrawal will not affect the continuation of the PRTPO unless the requirements of RCW 47.80.020 are no longer met. 12. Dissolution of the PRTPO The PRTPO may be dissolved at any meeting of the Executive Board by a majority vote of all voting members, so long as all voting members were provided at least six months written notice of the proposed dissolution, or as otherwise provided for in the bylaws, and all voting members were provided an opportunity for comment on the motion. Upon dissolution of the PRTPO, all liabilities, costs, expenses, and charges validly incurred shall be resolved. If any funds or assets of the PRTPO remain, such shall be returned as provided by law or contract, or distributed as determined by the Executive Board. The debts, liabilities, and obligations of the PRTPO shall not constitute a debt, liability or obligation of any member. 13. Binding effect The undersigned public agencies agree that this Interlocal Agreement is binding and that each will use their best efforts for coordinated and cooperative transportation planning. All tribes expressly agree to a limited waiver of their sovereign immunity for the sole and limited purpose of committing to the terms and obligations of this Interlocal Agreement. 14. General Terms A. Severability. If any provision of this Agreement, or its application to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the Agreement or the application of the provision to other persons or circumstances is not affected. B. Counterparts. This agreement may be signed in multiple counterparts, each of which shall be considered the same as an original. C. Publishing. In accordance with RCW 39.34.040, this Agreement shall be made available on the PRTPO website. Peninsula Regional Transportation Planning Organization 2019 Interlocal Agreement - 6 IN WITNESS WHEREOF, this Interlocal Agreement shall have the full force and effect from and after this ____ day of __________, 20___. [signatures to follow] AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Complete Streets Grant Study Session Date: May 8, 2019 Agreement with the WA State Transportation Improvement Board COUNCIL MEETING Date: May 15, 2019 Department: PW&U Presenter: Shane Weber Phone: (360) 473-2354 SUMMARY: The Washington State Transportation Improvement Board (TIB) has a Complete Streets Award Program for local governments that have an adopted Complete Streets Ordinance. TIB Board approved Nominators nominate agencies that demonstrate a practice of planning and building streets to accommodate all users including transit, motorists, cyclists and pedestrians of all ages and abilities. During the 2018 grant cycle, staff worked with several nominators including Feet First, an organization that promotes walkable communities, who nominated the City for an award. The $350,000 award offered will fund bicycle and pedestrian circulation improvements downtown, along with partial funding for the Quincy Square project. There is no City match. ATTACHMENTS: 1) Grant Agreement 2) Site Plans FISCAL IMPACTS (Include Budgeted Amount): The offered award provides $150,000 to the Quincy Square project, and $200,000 for bicycle and pedestrian improvements downtown. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Agreement with the Washington State Transportation Improvement Board for the Complete Streets Award 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 B8 OF SHEET DATEWASH. P.E. # CHECKED BY: DATEWASH. P.E. # DESIGN BY: DATE DRAWN BY: VERT.HORIZ. SCALE FIELD BOOK BYDATENO.CITY OF BREMERTONREVISIONS DESCRIPTION DEPARTMENT OF PUBLIC WORKS & UTILITIES CAD FILE:ENGINEERING DIVISION DRAWING NO. IF NOT SCALE ACCORDINGLY ONE INCH AT FULL SCALE 1/2"0 1"PN:H:\Bike Lanes\BIKE LANES_KAS_20190429.dwgFEB 8, 2019 S. WEBERK. SANFORD PLAN LAYOUTNTS 17 3LAYOUT OF PLANS NEW BIKE LANES N BURWELL ST BURWELL ST 2ND ST 4TH ST 4TH ST 5TH ST 5TH ST 6TH ST 6TH ST PACIFIC AVEPACIFIC AVEWASHINGTON AVEWASHINGTON AVEWASHINGTON AVE1ST ST AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: May 8, 2019 Budget Amendments to the 2019 REET and Transportation Capital Funds; and Local Agency Professional Services Cost Plus Fixed Fee Consultant Agreement with KPFF for Design of the 6th Street Preservation Phase 1 and 2 Projects COUNCIL MEETING Date: May 15, 2019 Department: PW&U Presenter: Shane Weber Phone: (360) 473-2354 SUMMARY: On October 17, 2018, the City accepted the PSRC grant funding for the 6th Street Preservation Phase 1 project, which will grind and overlay 6th between Callow and Naval Avenues and reconstruct non-compliant curb ramps. On February 6, 2019, the City accepted PSRC grant funding for the 6th Street Preservation Phase 2 project, which will construct similar improvements between Warren and Pacific Avenues, including curb ramp and traffic signal reconstruction at Park Avenue. Four consultants were interviewed to design the improvements and KPFF was selected. Phase 1 is budgeted for design in 2019 and construction in 2020. Phase 2 was budgeted for design in 2020 and construction in 2021; however PSRC has approved an acceleration of the design to match the Phase 1 schedule for efficiency. While the Phase 2 project is not included in the 2019 REET or Capital budgets, it was included in the 5-year REET projection and the CIP. ATTACHMENTS: 1) Fiscal Summary Updated 2) Local Agency Agreement for 6th St. Phase 1 Project Updated 3) Local Agency Agreement for 6th Street Phase 2 Project Updated FISCAL IMPACTS (Include Budgeted Amount): The consultant fee for design is estimated at $342,727; see attached fiscal summary for detail. The 2019 REET and Transportation Capital Fund budgets will be amended to add the Phase 2 project. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to amend the 2019 REET and Transportation Capital Fund budgets per the attached fiscal summary; approve the Local Agency Professional Services Cost Plus Fixed Fee Consultant Agreements with KPFF for design of the 6th Street Preservation Phase 1 and Phase 2 projects; and authorize the Mayor to finalize and execute the agreements with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B9 Updated Page 1 of 2 6th STREET PRESERVATION PHASE 1 AND PHASE 2 PROJECTS FISCAL SUMMARY PHASE 1 – Callow to Naval The KPFF Consultant fee for design of Phase 1 is estimated at $124,989, which includes $6,000 for design of curb ramps which is non grant eligible. The eligible portion of design is 86.5% grant funded. The cost for securing right-of-way and construction will be established during design and presented separately. The expense and revenue for the design is estimated per the breakdown below: PHASE 2 – Warren to Pacific The KPFF Consultant fee for Phase 2 is estimated at $217,738, which includes street design, water design and preparation of a right of way plan. The eligible portion of street design is 80% grant funded. The Water Utility will fund its portion of work. The right of way portion of work is non eligible for grant participation and will be funded by REET. The cost for securing right-of-way and construction will be established during design and presented separately. The expense and revenue for the design is estimated per the breakdown below: Page 2 of 2 BUDGET AMENDMENT A budget adjustment is not required for the water portion of work. Below is the budget adjustment breakdown for the Transportation Capital Fund and 2019 REET fund: AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: May 8, 2019 Interlocal Agreement with the Kitsap Regional Coordinating Council (KRCC) COUNCIL MEETING Date: May 15, 2019 Department: Legal Presenter: Roger Lubovich Phone: (360) 473-2345 SUMMARY: On May 7, 2019, the Kitsap Regional Coordinating Council approved the Interlocal Agreement as amended at their monthly Board Meeting. It is now requested that each Member Agency adopt and execute the updated Interlocal Agreement. The amendments relate to changes to the voting and membership structure of the Council. The voting structure is removed from the Interlocal Agreement and updated in Sections 9.5 and 9.6 of the amended Bylaws (attached), adopted by the Council December 4, 2018. ATTACHMENTS: 1) KRCC Interlocal Agreement 2) KRCC Bylaws FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Kitsap Regional Coordinating Council Interlocal Agreement as amended; and authorize the Mayor to 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 B10 Added 20192 Amendments 1 KITSAP REGIONAL COORDINATING COUNCIL INTERLOCAL AGREEMENT THIS AGREEMENT is made and entered into by and between the undersigned parties pursuant to provisions of the Interlocal Cooperation Act of 1967, Chapter 39.34 RCW. WHEREAS, the undersigned members recognize the need and desirability to participate in a forum for intergovernmental coordination, cooperation, and consultation among member agencies in order to bring about a continuous and comprehensive regional planning process and efficient service delivery; and WHEREAS, the undersigned members desire jointly to undertake continuous, cooperative study and planning of regional and governmental issues of mutual interest, including but not limited to development, land use, housing, capital facilities, service, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation, transportation planning, and economic development; and WHEREAS, it is the belief of the undersigned members that regional deliberations, planning, and review can best be achieved with the creation of a separate legal entity whose function and activities are subject to policy direction from the undersigned member agencies according to the provisions of this Agreement; and WHEREAS, the State Growth Management Act (GMA) requires local jurisdictions to coordinate and ensure consistency when developing comprehensive land use plans and the undersigned members desire to establish the Kitsap Regional Coordinating Council as a separate legal entity to facilitate coordination and consistency of comprehensive land use plans as required by the GMA; and WHEREAS, the undersigned members desire to use the Kitsap Regional Coordinating Council for developing County-wide Planning Policies (CPPs) under the GMA as a framework to guide Kitsap County and cities situated within the County in developing their comprehensive land use plans. THEREFORE, in consideration of mutual promises and covenants herein it is hereby agreed: I. NAME This Agreement establishes the KITSAP REGIONAL COORDINATING COUNCIL (“Council”), a separate legal entity since 2001. II. DURATION The Agreement shall remain in force and effect perpetually or until terminated by majority vote of the member agencies. Kitsap Regional Coordinating Council 20192 Amendments 2 III. DEFINITIONS For the purpose of this Interlocal Agreement, the following terms have the meaning prescribed to them in this section unless the context of their use dictates otherwise: A. “Member agency” means a voting and dues paying municipal or other government entity located within Kitsap County which is a party to this Agreement. B. “State” means the State of Washington. C. “Region” means the territory physically lying within the boundaries of Kitsap County. D. “Kitsap Regional Coordinating Council” or “Council” means the separate legal entity established by this Agreement to represent member agencies to carry out those powers and managerial and administrative responsibilities delegated pursuant to the provisions of this Agreement. E. “Majority vote” means more than one-half of the votes cast when a quorum is present and must include a majority of votes from County commissioners and a majority of votes from the representatives of at least two separate cities. EF. “Executive Board” shall mean the representatives of member agencies of the Kitsap Regional Coordinating Council identified in Article IV.B. of this Agreement. FG. “Cost Allocation” means annual dues (the annual allocation among Member agencies of the cost of Council operations determined by the Executive Board for the purposes of calculating members’ obligations to contribute to the funding of Council operations for the year, and for the purposes of calculating obligations and distributions in the event of withdrawal or termination). GH. “Ex Officio Member” means a non-voting, non-dues paying member of the Council that is not a party to this Agreement. I. “Two-thirds majority vote” means a majority vote and also requires a majority of votes from County commissioners and a majority of votes from the representatives from at least two separate cities. HJ. “Associate Member” means a non-voting, dues paying member of the Council which that is not a party to this Agreement and who enters into a separate agreement with the Council that establishes the Associate Member’s level of participation in Council activities. 20192 Amendments 3 IV. MEMBERSHIP AND REPRESENTATION A. Membership. Membership (except for Associate Members and Ex Officio Members) is established by execution of this Agreement and payment of any required cost allocation as established by the Executive Board. New Members may be added through an ILA Amendment. B. Executive Board. The Executive Board is comprised of the following representatives of member agencies: 1. County Government: three (3) members of the Kitsap County Board of Commissioners; 2. City Governments: a. The Mayor of each city having a population of 10,000 persons or less; b. The Mayor and one (1) member of the City Council of each city having a population between 10,001 persons and 30,000 persons; c. The Mayor and two (2) members of the City Council of each city having a population greater than 30,000 persons; d. A city with a Council/Manager form of government may select one (1) member of the City Council instead of a Mayor. The number of additional City Council members representing the city shall be as described in 2(a-c) above. e. Population will be determined by the most recent annual population estimate of cities and towns prepared by the Washington State Office of Financial Management. 3. Port of Bremerton: one (1) representative consisting of a Port Commissioner. 4. Kitsap Transit: one (1) representative consisting of a member selected by the Kitsap Transit Board of Commissioners. 5. City Council, Kitsap Transit and Port of Bremerton representatives may be selected by whatever means established by each specific member agency for a two (2) year term. C. The determination of the population of cities will be the most recent annual population estimate of cities and towns prepared by the Washington State Office of Financial Management. D. New membership. A municipal or government entity or a federally recognized Indian Tribe that desires to become an Ex Officio Mmember or an Associate Member of the 20192 Amendments 4 Council must obtain permission to do so by majority vote of the Executive Board. The required permission applies to any entity that wishes to become a Member or Ex Officio Member. Associate Members A municipal or government entity or a federally recognized Indian tribe that wishes to become an Associate Member must obtain permission to do so by a majority vote of the Executive Board, and must also present a draft agreement for the Executive Board’s consideration, establishing the proposed terms, duties, powers and privileges for Associate Member status. V. POWER, AUTHORITY, AND PURPOSE This Agreement does not confer additional substantive powers or authorities on member agencies. The powers and authorities conferred herein are limited to the powers that each member agency is authorized by law to perform. The Council has the following power, authority, and purpose: A. Provide a regional forum for regional deliberations and cooperative decision- making by the region’s elected officials in order to bring about a continuous and comprehensive planning process, and foster cooperation and mediate differences among governments throughout the region. B. Consistent with the GMA, coordinate and ensure consistency when developing comprehensive land use plans. C. Consistent with the GMA, develop CPPs to be used as a framework to guide the County and the Cities in developing their comprehensive land use plans; D. Coordinate actions to provide for the distribution of state and federal grant funds, including but not limited to federal transportation funding, community development block grants, and low-income housing grants. E. Undertake continuous, cooperative study and planning of regional and governmental problems of mutual interest, including but not limited to development, land use, housing, capital facilities, services, utilities, finances, public buildings, water supply, water distribution and drainage, air and water pollution, parks and recreation and transportation planning. F. Coordinate actions to provide for a sustainable economy and environment for the region. G. Carry out such other planning and coordinating activities authorized by majority vote of the Council including participation in other forums and organizations. H. Establish Bylaws, to be amended from time to time, that govern the procedures of the Council. The Bylaws, as may be amended, are incorporated into this Agreement by this reference as if fully set forth herein. I. Contract for administrative services and enter into other agreements as deemed appropriate and/or necessary to implement this Agreement. 20192 Amendments 5 J. Purchase, receive, lease, take by gift, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of the Council. K. Sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of its property and assets. L. Sue and be sued, complain and defend, in all courts of competent jurisdiction in the Council’s name. M To engage in any other activity necessary to further the Council goals and purposes to the extent authorized by chapter 39.34 RCW. N. Apply for such federal, state, or private funding of any nature as may become available to assist the organization in carrying out its purposes and functions. O. Identify and examine issues such as governance, growth policies, development standards, service provision, revenue-cost sharing and municipal annexations in urban growth areas. P. Strive to represent the consensus of views on growth management and planning issues among member agencies. The Council makes recommendations on behalf of those jurisdictions to multi-county regional agencies and State government on behalf of member agencies, on proposed changes to multi-county regional plans, state plans and laws. Q. Represent the views or position of member agencies within the County on issues of consistency or the resolution of conflicts related to the multi-county regional growth strategy and transportation plan. R. Make appointments to committees and boards of multi-county regional organizations (e.g. Puget Sound Regional Council, Peninsula Regional Transportation Planning Organization) where appointments are requested to represent more than one member agency of the Council. Members appointed to such committees and boards shall represent the consensus of the views of the Council. If consensus is not reached on a particular issue, the members appointed to such committees and boards shall represent the majority and minority views of the Council, in order to accurately portray the status of discussions on that issue. S. Review this Interlocal Agreement no fewer than every 10 years with the assistance of legal counsel. VI. FINANCING A. Cost Allocation. All members shall pay the annual cost allocation as described in the Bylaws. If payment by a member is not paid timely after notice of the cost allocation is received, the member is subject to having its membership status revoked by majority vote of the Executive Board. 20192 Amendments 6 B. Local Government Accounting. All services and transfers of property to the Kitsap Regional Coordinating Council shall be paid and accounted for in accordance with RCW 43.09.210. VII. FISCAL YEAR AND BUDGET A. The Fiscal Year. The fiscal year shall coincide with the calendar year. B. Adoption of Budget. By September of each year the Executive Board shall adopt a draft annual work program, budget, and cost allocation for the ensuing fiscal year that identifies anticipated activities, goals, revenues, and expenditures for completing the work program. The final work program, budget, and cost allocation for the ensuing year shall be adopted by the Executive Board no later than November of each year. No increase or decrease to the final budget shall occur without the approval of the Executive Board. C. Notice of Budget. On or before September 30, the Executive Board shall provide written notice of the ensuing year’s draft budget, work plan, and cost allocation to the designated representative(s) of each member agency. On or before November 30, the Executive Board shall provide written notice of the final budget, work plan, and cost allocation adopted for the ensuing fiscal year to the designated representative(s) of each member agency. D. Accounting, Budgeting, and Reporting. The Council shall be subject to the Budgeting Accounting & Reporting System (BARS) applicable to Category 1 local governments. E. Fiscal Agent. The Council may retain a fiscal agent. The fiscal agent may be a member agency who shall serve and be subject to removal, pursuant to the terms and conditions as established by agreement between the fiscal agent and the Council. F. Contracting. All contracts made by or on behalf of the Council shall be in accordance with state law, including, but not limited to: Chapter 39.04 RCW, and Chapter 42.23 RCW, and Chapter 42.24 RCW. VIII. WITHDRAWAL FROM AGREEMENT Any member agency has the right to withdraw from this Interlocal Agreement by giving the Executive Board six (6) months prior written notice. Unless otherwise provided by future agreement, any member agency that withdraws shall remain responsible for its financial and other obligations with regard to Council activities until the effective date of withdrawal and with regard to agreements to which the Council is a party and which exist at the time of such notice of withdrawal. Withdrawal by one member agency to this Interlocal Agreement shall not terminate the Agreement as to any other remaining member agencies. Except as provided in Article IX of this Agreement, any member agency that withdraws from this Agreement forfeits any rights it may have to the Council’s assets; provided, however, such forfeiture shall not take effect if the Council dissolves within one (1) year of the date of the withdrawal notice. IX. DISPOSAL OF ASSETS 20192 Amendments 7 Upon dissolution of the Council, any Council assets, after payment of all liabilities, costs, expenses, and charges validly incurred under this Agreement, shall be distributed to member agencies which are members of the Council on the date of dissolution. Distribution of assets shall be in proportion to the funding formula for cost allocation as described in the Bylaws, in accordance with Article VI.B. of the Agreement, and existing at the time of dissolution. The debts, liabilities, and obligations of the Council shall not constitute a debt, liability, or obligation of any member agency. If assets cannot reasonably be distributed in proportion to the funding formula, the Council shall declare the assets to be surplus, and shall offer the assets for sale according to the requirements of chapter 43.19 RCW, and shall distribute the proceeds from the sale in proportion to the funding formula established by the Executive Board in accordance with Article VI.B. of this Agreement. X. LIABILITY AND INSURANCE A. Any loss or liability to third parties resulting from negligent acts, errors, or omissions of the Council, Member agencies (excluding Associate Members), Ex Officio Members, and/or employees while acting within the scope of their authority under this Agreement shall be borne by the Council exclusively, and the Council shall defend such parties, at its cost, upon request by the member agency, ex officio agency, and/or employee. B. The Executive Board shall obtain commercial general liability, and auto liability insurance coverage for the Council, Executive Board, and any staff employed by the Council, at levels no less than $1 million single occurrence and $2 million aggregate for each type of liability that is insured. The policy shall name each member agency, and their respective elected officials, officers, agents, and employees as additional insured’s. The Executive Board shall annually evaluate the adequacy of the Council’s insurance coverage. C. The Executive Board shall require that all contractors and subcontractors utilized by the Council obtain insurance coverage consistent with Article X.B. XI. LEGAL REPRESENTATION The Council may retain legal counsel. Legal counsel may be an employee of a member agency, an outside entity, or an individual. In the event of a conflict of interest, the Council may retain substitute or additional legal counsel. Additionally, Council may retain outside legal counsel concerning any matter the Council deems appropriate. Retained counsel shall serve, and be subject to removal, pursuant to the terms and conditions established by agreement between legal counsel and the Council. An adjustment in cost allocation to Members will be made if the Council retains outside legal counsel. XII. ENTIRE AGREEMENT This Agreement supersedes all previous Kitsap Regional Coordinating Council interlocal agreements and all prior discussions, representations, contracts, and/or agreements between the parties relating to the subject matter of this Agreement and constitutes the entire contract between the parties. XIII. MODIFICATION 20192 Amendments 8 Except as provided by Article XIX, the terms of this Agreement shall not be altered or modified unless agreed to in writing by all member agencies and such writing shall be executed with the same formalities as are required for the execution of this document. XIV. WAIVER The failure of any party to insist upon strict performance of any of the terms and conditions of this Agreement shall not be construed to be a waiver or relinquishment of same, but the same shall be and remain in full force and effect. XV. NOTICE Except as provided in Article XVIII of this Agreement, any notice required by this Agreement shall be made in writing to the representative(s) identified in Article IV.B. of this Agreement. Notice is effective on the third day following deposit with the U.S. Postal Service, regular mail. XVI. SEVERABILITY If any of the provisions of this Agreement are held illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect. XVII. CHOICE OF LAW AND VENUE This Agreement shall be governed by the laws of the State of Washington, both as to its interpretation and performance. Any action at law, suit in equity, or other judicial proceeding arising in connection with this Agreement may be instituted and maintained only in a court of competent jurisdiction in Kitsap County, Washington. XVIII. CLAIMS A. Any claim for damages made under chapter 4.96 RCW shall be filed with the Chair of the Kitsap Regional Coordinating Council, c/o the Clerk of the Kitsap County Board of Commissioners, 614 Division Street, MS-4, Port Orchard, Washington, 98366. B. Upon receipt of a claim for damages, or any other claim, a copy of the claim will be provided by the Clerk of the Board to each member of the Executive Board. XIX. EXECUTION AND FILING A. Counterparts. The parties agree that there shall be multiple original signature pages of this Agreement distributed for signature by the necessary officials of the parties. Upon execution, the executed original signature pages of this Agreement shall be returned to the Clerk of the Kitsap County Board of Commissioners, who shall file an executed original of this Agreement with the Kitsap County Auditor. The Clerk of the Board shall distribute duplicate conformed copies of the Agreement to each of the parties. Parties that sign on as Members at a later date will provide original signature pages of this Agreement to the Clerk of the Kitsap 20192 Amendments 9 County Board of Commissioners, who shall file the signature pages provided with the Kitsap County Auditor. The Clerk of the Board shall distribute duplicate conformed copies of the signature pages filed later, to each of the parties. Addition of parties at a later date will not constitute a modification under Section XIII of this Agreement. B. Later Approval and Filing. Later approval and filing of this Agreement by additional parties as set forth in Article IV, Section D, shall be deemed an authorized amendment to the Agreement already on file with the Kitsap County Auditor, without the need for reconsideration and approval by parties that have already approved and executed the Agreement. XX. EFFECTIVE DATE This Agreement shall go into effect among and between the parties upon its execution by all of the parties, as evidenced by the signatures and dates affixed below and upon its filing with the County Auditor as provided in Article XIX. IN WITNESS WHEREOF, this Agreement has been executed by each party on the date set forth below: Signatures on following pages 20192 Amendments 10 Executed this ___ day of _____________, 20192. Approved as to form CITY OF BAINBRIDGE ISLAND Bainbridge Island City Attorney Kol MedinaDebbi Lester, Mayor Executed this ___ day of _____________, 20192. Approved as to form CITY OF BREMERTON Bremerton City Attorney Greg WheelerPatty Lent, Mayor Executed this ___ day of _____________, 20192. Approved as to form CITY OF PORT ORCHARD Port Orchard City Attorney Robert PutaansuuTim Matthes, Mayor Executed this ___ day of _____________, 20192. Approved as to form CITY OF POULSBO Poulsbo City Attorney Becky Erickson, Mayor Executed this ___ day of _____________, 20192. Approved as to form PORT OF BREMERTON Port of Bremerton Attorney Larry Stokes, President 20192 Amendments 11 Executed this ___ day of _____________, 2019. Approved as to form KITSAP TRANSIT Kitsap Transit Attorney John Clauson, Executive Director Executed this ______ day of __________________, 20192. ATTEST: KITSAP COUNTY BOARD OF COMMISSIONERS EDWARD E. WOLFEROBERT GELDER, Chair CHARLOTTE GARRIDO, Commissioner Dana Daniels, Clerk of the Board ROBERT GELDERJOSH BROWN, Commissioner Deputy Prosecuting Attorney By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 1 KITSAP REGIONAL COORDINATING COUNCIL BYLAWS (AMENDED) Section 1. PURPOSE: To establish the operating structure and procedures necessary to effect the intent of the Kitsap Regional Coordinating Council Interlocal Agreement. Section 2. NAME OF ORGANIZATION: The organization is a legal entity known as the Kitsap Regional Coordinating Council herein referred to as the “Council.” Section 3. ESTABLISHMENT: The Council is established by an interlocal agreement, as amended from time to time, known as the Kitsap Regional Coordinating Council Interlocal Agreement. Section 4. DEFINITIONS: The following terms have the meaning prescribed to them in this section unless the context of their use dictates otherwise, and are the same terms and meanings set forth in the Kitsap Regional Coordinating Council Interlocal Agreement: 4.1 “Member agency” means a voting and dues paying municipal or other government entity located within Kitsap County which is a party to this Agreement. 4.2 “State” means the State of Washington. 4.3 “Region” means the territory physically lying within the boundaries of Kitsap County. 4.4 “Kitsap Regional Coordinating Council” or “Council” means the separate legal entity established by the Interlocal Agreement to represent member agencies to carry out those powers and managerial and administrative responsibilities delegated pursuant to the provisions of the Interlocal Agreement. 4.6 “Executive Board” shall mean the representatives of member agencies of the Kitsap Regional Coordinating Council identified in Article IV.B. of the Inter-Local Agreement (incorporated below and amended to clarify as to Council/Manager form of government, March 2, 2010). The Executive Board is comprised of the following representatives of member agencies: 1. County Government: three (3) members of the Kitsap County Board of Commissioners; 2. City Governments: a. The Mayor of each city having a population of 10,000 persons or less; b. The Mayor and one (1) member of the City Council of each city having a population between 10,001 persons and 30,000 persons; By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 2 c. The Mayor and two (2) members of the City Council of each city having a population greater than 30,000 persons; 3. A city with a Council/Manager form of government may select one (1) member of the City Council instead of a Mayor. The number of additional City Council members representing the city shall be as described in 2a-c above. 4. Port of Bremerton: one (1) representative consisting of a Port Commissioner. 5. Kitsap Transit: one (1) representative consisting of a member selected by the Kitsap Transit Board of Commissioners. 6. City Council, Port of Bremerton, and Kitsap Transit representatives may be selected by whatever means established by each specific member agency for a two (2) year term. 4.7 “Cost Allocation” means annual dues (the annual allocation among Member agencies of the cost of Council operations determined by the Executive Board for the purposes of calculating members’ obligations to contribute to the funding of Council operations for the year, and for the purposes of calculating obligations and distributions in the event of withdrawal or termination). 4.8 “Ex Officio Member” means a non-voting, non-dues paying member of the Council. 4.9 “Associate Member” means a member of the Council which is not a party to this Agreement and who enters into a separate agreement with the Council that establishes the Associate Member’s level of participation in Council activities. 4.10 “Executive Director” is the person or contracted entity appointed by the Executive Board to accomplish the work plan adopted by the Executive Board. Section 5. DISPUTE RESOLUTION PROCEDURES: The Council acts to facilitate consistency among local plans and between local plans and the County-wide Planning Policies consistent with the Growth Management Act. In cases where the Council finds apparent inconsistency between a local comprehensive plan and the County-wide Planning Policies, it will notify the jurisdiction of the inconsistency and initiate a process of review to try to achieve consistency. If, after completion of this process, the inconsistency remains, the Council will, where appropriate, recommend specific changes to the jurisdiction to achieve consistency. In the event of conflict among member agencies regarding amendments to County-wide planning policies, which is not resolved after reasonable efforts, the conflict shall be brought to the attention of the Council in writing by one or more of the member agencies involved in the conflict. The written notice must inform the Council of the nature of the conflict, and the agency providing notice must justify its position for contesting the County-wide planning policies. The Council will use the notice to initiate a process for review, and recommend a resolution to the By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 3 conflict. Section 6. PUBLIC PARTICIPATION: The Council provides for effective means of public participation in its deliberations. Section 7. ALTERNATE AND EX OFFICIO REPRESENTATION: 7.1. Alternate representatives to the Executive Board may be designated by each member agency and by ex officio members. Alternate representatives for member agencies shall consist only of elected official(s). Kitsap Transit may designate a non-elected senior staff person as an alternate. Only in the absence of a representative shall a designated alternate be entitled to voting privileges. Each designated alternate is entitled to the same voting privileges as the representative. For example, a County Commissioner may appoint an alternate representative to attend and vote at one or more meetings that the County Commissioner is unable to attend; provided that the alternate representative is an elected Kitsap County official. 7.2. The Council can consider Ex Officio membership status for other government entities, at their discretion. This category of membership is designed to increase policy-level communication and collaboration among other public agencies within Kitsap County. 7.2.1 Ex Officio members do not vote. 7.2.2 Ex Officio members shall not pay membership dues. 7.2.3 Ex Officio members’ representative may be selected by whatever means established by each specific member agency for a two (2) year term. Ex Officio members’ representatives may have a designated alternate. 7.2.4 The Council’s designation of Ex Officio members shall be by simple majority vote in conformance with Section 9.5 herein. SECTION 8. OFFICERS, ELECTION, TERMS AND DUTIES: 8.1 The officers of the Council are a Chair and a Vice Chair, who are elected by the Council at the last regularly scheduled meeting during each calendar year. The Chair and Vice Chair shall be from different member agencies. Ex Officio Members and Associate Members are not eligible to serve as officers. 8.2 The Chair and Vice Chair serve a one-year term from the first day of January through the last day of December of each year. 8.3 In the event there is a vacancy in the office of the Chair, the Vice Chair succeeds to the office of Chair for the unexpired portion of the term. In the event there is a vacancy in the office of Vice Chair, the Council elects a new Vice Chair at the next regular meeting to serve the unexpired portion of the term. In the event both offices become vacant, the Council elects a new Chair and Vice Chair to serve the unexpired portion of the terms. 8.4 Duties of the Chair: By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 4 8.4.1 The Chair is a member of the Executive Board, and presides at the meetings of the Council; 8.4.2 Create, appoint, and discharge Council committees unless otherwise provided in these By-laws; 8.4.3 Serve as Chair of the Executive Committee; 8.4.4. Call for the vote on all motions properly presented and seconded; 8.4.5 Enforce the procedural rules of the Council during meetings 8.4.6 Participate in deliberations of the Council; 8.4.7 Vote in all matters before the Council; 8.4.8 Ensure that the functions of the Council are carried out to the best of his or her abilities; 8.4.9 Make reports as necessary to the Council; and 8.4.10 Execute on behalf of KRCC all contracts, agreements, and other documents and papers duly authorized by the KRCC that may require signature. 8.5 The Vice Chair performs the duties of the Chair in the absence of the Chair and is a member of the Executive Committee. Section 9. MEETINGS, QUORUM, VOTING: 9.1 The Council, through its Executive Board, meets monthly or as necessary to fulfill its purpose and function, to discuss issues of mutual interest, and to take action on items as necessary or appropriate. 9.2 Meetings of the Executive Board and Standing Policy Committees created by the Chair shall conform to the Open Public Meetings Act, Chapter 42.30 RCW. 9.3 On items that are deliberative in nature, the Council strives for consensus. Procedures in the current edition of Robert’s Rules of Order-The Modern Edition are adopted by the Council for its regular and special meetings unless they are inconsistent with these By-laws or any special rules of order the Council has adopted. 9.4 A quorum of the Executive Board is a simple majority of representatives of member agencies. Each representative of a member agency who is present at the meeting shall be entitled to cast one vote. Designated alternatives are entitled to vote only in the absence of the representative as set forth in Section 7.1 herein. Telephonic participation is not authorized for regular meetings, but is authorized for special meetings pursuant to section 9.6.5. By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 5 9.5 Unless otherwise specified, actions by the Council are affirmed by a simple majority vote. A majority vote is more than one-half (1/2) of those present and voting. 9.6 Notwithstanding any other language in these bylaws, approval of the following actions will require a super-majority affirmative vote of 75% of the Executive Board: • Approval of Countywide Planning Policies; • Approval of the KRCC annual budget and work plan; • Approval of transportation competition funding recommendations; and • Approval of any other item that a majority of voting members agree must be approved by a super-majority affirmative vote of 75% of the Executive Board. 9.7 Special Meetings may be called, pursuant to Chapter 42.30 RCW, at any time as follows: 9.7.1 The Chair, after a reasonable attempt to contact each of the other members of the Executive Committee and with concurrence of a majority of the Executive Committee, may call a special meeting of the Council. 9.6.2 Written notice must be delivered personally or by mail and by e-mail or fax, at least 24 hours before the time of the special meeting, to each member of the Council and to each local newspaper of general circulation and each local radio or television station that has on file with the Council a written request to be notified of that special meeting or of all special meetings. Written notice is not required when a member, prior to or at the meeting, files written notice of waiver of notice, or the member is telephonically present pursuant to section 9.4, or is physically present at the meeting. 9.7.3 The notice must specify the time and public place of the special meeting, and the business to be transacted. 9.7.4 The Executive Board may take final action only concerning matters identified in the notice of the meeting. 9.7.5 Telephonic participation via speakerphone is allowed for special meetings. Any or all members may participate telephonically. The place selected for the meeting must be equipped with a speakerphone with conference call capability. Members participating telephonically must identify themselves while voting telephonically and as needed during discussion. 9.7.6 A quorum of the Executive Board must participate, and voting majorities as described in Sections 9.4 and 9.5 are required for action. 9.8 The Council may organize, sponsor, and convene general assembly meetings of member agencies, Ex Officio members, and Associate members. 9.9 Staff or elected officials from municipal or government entities within Kitsap County that choose not to be a dues paying member of KRCC and are not voted in as an Ex-Officio or By-Laws of the Kitsap Regional Coordinating Council Adopted Dec. 20, 2007 (Section 4.6 revised Nov. 1, 2016) (Section 7.1 and 9.6 revised Dec. 4, 2018) Page 6 Associate member may not have a regular seat, but may make presentations to standing KRCC committees to ensure access to regional transportation funding and to support consistency with comprehensive plans and Countywide Planning Policies across the Kitsap County jurisdictions. Section 10. COMMITTEES: 10.1 At the first Executive Board meeting of each calendar year, the Chair appoints an Executive Committee. Members of the Executive Committee will include: one County Commissioner, and two representatives of two City governments and includes the Chair and Vice Chair, for a minimum of three members. The Executive Committee’s responsibilities include: 10.1.1 Monitoring the annual work program and budget performance and recommending revisions, if necessary; 10.1.2 General oversight of the executive director, consistent with the Council’s contract with the executive director for such services; or, of any employee hired by the Council. The Executive Committee is responsible for reviewing and ensuring that all expenditures submitted for reimbursement by the executive director complies with the executive director’s contract; 10.1.3 Oversight of the Council’s records retention requirements; 10.1.4. Recommending amendments to the Interlocal Agreement and By-laws; 10.1.5 Preparing a recommended annual work program and budget for the succeeding year; and 10.1.6 Undertaking such studies and activities as assigned by the Chair or Council. 10.2 The Chair may appoint or the Council may request that the Chair appoint other committees as needed to advise or assist the Council in fulfilling its functions. Committee composition should include, as appropriate, representatives of County, City and Tribal governments, the Port of Bremerton, or other members. Section 11. AMENDMENTS: These By-laws may be amended at a meeting of the Council by a two-thirds (2/3) majority vote of those present and voting, provided that a copy of the proposed amendment has been sent to each Council representative at least thirty (30) business days prior to the meeting at which the vote to amend is scheduled. Voting must be in conformance with Section 8.5 herein. ______________________________________________________ CITY AUDITOR 345 6th Street, Suite 100, Bremerton, WA 98337-1873 & Phone (360) 473-5369 May 2, 2019 To Audit Committee Members: Leslie Daugs, Audit Committee Chair and Council Member Deborah McDaniel, Audit Committee Vice-Chair and Citizen Member Lori Wheat, Council Member Darryl Riley, Citizen Member Dennis Treger, CPA Re: Lodging Tax Process Review Dear Audit Committee Members: At your request and based on the information available to date, I am submitting my findings regarding the Lodging Tax Process Review. The purpose of this review was to provide Council and Administration information that can be used to improve the Lodging Tax allocation process and provide ideas for Lodging Tax fund uses. Included with this report are the following attachments: 1. Exhibit A: Recommendations/Considerations 2. Exhibit B: Examples of Lodging Tax awards in 2016 3. Exhibit C: Examples of Lodging Tax awards in 2017 4. Exhibit D: Entities that Received LTAC Funds from Bremerton and Other Jurisdictions 5. Exhibit E: Records considered and/or analyzed for this report 6. Exhibit F: Individuals who provided information used in this report LODGING TAX USE HISTORY The Legislature adopted the first version of the present day lodging excise tax in 1967 to build the Kingdome. The original version of the tax supported municipal authority to acquire, finance, construct, and operate sports stadiums. A series of subsequent amendments expanded the permissible uses. For example, in 1973, the Legislature expanded the tax use to include acquisition and operations of convention center facilities. Six years later, the acquisition and operation of performing arts center facilities, like the Admiral Theatre, were added. Lodging Tax Process Review May 2, 2019 Page 2 of 16 Today, the guiding principle for use of lodging taxes is that they must be used for activities, operations and expenditures designed to increase tourism. More specifically, lodging taxes can be used for:  Tourism marketing including activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; and developing strategies to expand tourism.  Marketing and operations of special events and festivals designed to attract tourists.  Operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district. “Tourism-related facility” means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a) (i) Owned by a public entity; (ii) owned by a 501(c)(3) nonprofit organization; or (iii) owned by a 501(c)(6) nonprofit organization, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities.  Operations of tourism-related facilities owned or operated by nonprofit organizations.  Fund direct and indirect administrative costs to support LTAC, including LTAC staff support, contract administration, finance and payroll.  The City can also issue general obligation or revenue bonds to provide funding to public housing authorities for affordable workforce housing within a half mile of a transit center and pledge lodging taxes to the repayment of the bonds. In King County, after it paid off its Kingdome debt with lodging tax dollars, the county used lodging tax dollars to help fund CenturyLink Field, whose debt will be paid off in 2020. The legislature determined that beginning in 2021, King County must use at least 37.5 percent of its lodging tax for affordable workforce housing and services for homeless youth, 37.5 percent for art, cultural and heritage facilities, as well as the performing arts. The remainder — just 25 percent or less of the total lodging tax revenue collected in King County — may be used toward tourism promotion, which includes sports stadiums and events. BREMERTON LODGING TAX DISTRIBUTIONS The chart and graphs below summarize the Bremerton lodging tax distributions from 2014 through 20191: 1 The year represents when the funds will be paid. The lodging tax award process occurs the prior year. Lodging Tax Process Review May 2, 2019 Page 3 of 16 LODGING TAX ADVISORY COMMITTEE (“LTAC”) ROLE Applicants for use of lodging tax revenues submit their applications directly to the LTAC whose task is to select the candidates from amongst the applicants and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. In its role, the LTAC should be focused on the long term sustainability of the fund (and applicants), the economic impact the applying organizations may have on the community, and the benefits of long term dedicated funding (i.e. conference center). The LTAC submits its award recommendations to City Council. 2019 2019 Award % 2014 2015 2016 2017 2018 2019 6-Year Total Request Of Request Bremerton Historic Ships 15,000$ 18,000$ 36,000$ 55,000$ 66,000$ 70,000$ 260,000$ 79,000$ 89% WA State Science and Engineering Fair 11,000 14,000 19,000 20,000 45,000 43,000 152,000 45,000 96% Chamber of Commerce 10,000 18,000 22,000 25,000 32,000 30,000 137,000 38,000 79% Bremerton Symphony Association 11,000 12,000 17,000 25,000 25,000 20,000 110,000 25,000 80% Kitsap Historical Society 11,000 12,000 14,000 21,000 24,000 20,000 102,000 26,600 75% Visit Kitsap Peninsula 18,000 40,000 40,000 98,000 120,500 33% Kitsap Entrepreneurial Center - Harbor Festival 4,500 9,000 10,000 12,000 12,000 25,000 72,500 40,000 63% Downtown Bremerton Assoc - Wayz Goose 20,000 24,000 44,000 30,000 80% Kitsap Admirals 5,000 10,000 12,000 15,000 42,000 - NA Downtown Bremerton Assoc - Other 20,000 20,000 40,000 50,000 40% Peninsula Film Festival 15,000 15,000 - NA Roxy Bremerton Foundation 15,000 15,000 33,000 45% Valentinetti Puppet Museum 5,200 7,000 12,200 - NA Kitsap Pride - Festival 5,000 6,500 11,500 6,500 100% West Sound Arts & Music Association 5,000 5,000 10,000 - NA Olympic College Foundation - Festival 10,000 10,000 - NA Manette Business Association - Heavy Jeans 9,000 9,000 12,270 73% Broad Humor Festival 8,000 8,000 NA Dominion Workboat Historical Assoc 4,000 4,000 8,000 15,000 27% Collective Visions Gallery 3,500 2,500 6,000 2,500 100% City of Bremerton Quincy Square on 4th Street - 25,000 0% Subtotal 71,000 93,000 130,000 224,200 315,000 329,000 1,162,200 548,370 60% City owned properties: Admiral Theatre 150,000 150,000 150,000 150,000 150,000 150,000 900,000 150,000 100% Kitsap Conference Center (operations)155,000 155,000 155,000 155,000 250,000 250,000 1,120,000 250,000 100% Kitsap Conference Center (debt service)95,000 100,000 195,000 200,000 50% Distributed to City owned properties 305,000 305,000 305,000 305,000 495,000 500,000 2,215,000 600,000 83% Total Lodging Tax distributions 376,000$ 398,000$ 435,000$ 529,200$ 810,000$ 829,000$ 3,377,200$ 1,148,370$ 72% Percent distributed to City owned properties 81.1%76.6%70.1%57.6%61.1%60.3%65.6%52.2% Lodging Tax Distribution Description $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2014 2015 2016 2017 2018 2019 Lodging Tax Distributions Non-City Properties 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2014 2015 2016 2017 2018 2019 Percent Distributed to City Owned Properties $0 $100,000 $200,000 $300,000 $400,000 $500,000 2014 2015 2016 2017 2018 2019 Amount Distributed to City Owned Properties Lodging Tax Process Review May 2, 2019 Page 4 of 16 CITY COUNCIL’S OPTIONS RE: THE LTAC RECOMMENDATIONS An informal Attorney General opinion dated August 17, 2016 states a municipality may accept the LTAC recommendations as presented or it may award amounts different from the LTAC’s recommended amounts. If awarding a different amount, the municipality must satisfy a procedural requirement whereby the municipality must submit its proposed change to the LTAC for review and further input at least 45 days before final action on the proposal. While the municipality has the final say in distributing revenues (i.e. the award amount), it cannot choose to award recipients that were not recommended by the advisory committee. The informal opinion acknowledges that this interpretation of the statutes preserves the role of the advisory committee by allowing it to advise while also preserving the role of the municipality as the final decision maker. MUNICIPALITY DIRECTING THE LTAC Ms. Toni Nelson of Municipal Research and Services Center (“MRSC”) explained that although the LTAC is tasked with selecting the candidates and recommended amounts of funding, the municipality is permitted to communicate requests to the advisory committee in advance of the LTAC’s deliberations, such as a multi-year commitment for lodging taxes to pay down conference center debt. Based on Ms. Nelson’s experience with cities that disagreed with the advisory committee’s vision for lodging taxes, Ms. Nelson advises maintaining good communication between the municipality and the LTAC. At the beginning of Yakima’s lodging tax process last year, their Council sent a letter to the LTAC advising them not to fund the county Sun Dome. The four hoteliers that serve on the Yakima LTAC presented their case for funding the Sun Dome at a Council meeting and ultimately the Council agreed to the full funding request for the Sun Dome. Some general ideas Council may consider directing the LTAC on include:  Priority metrics such as heads in beds, generating economic impact, and/or vibrant community  Dollar amounts available for different types of uses, such as a specific dollar amount for the Conference Center, X percent for festivals and Y percent for marketing associations  Establishing award parameters, such as limits on how much an individual entity can receive each year and whether the limits change over time TOURISM RCW 67.28.080 defines tourism as “economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.” Tourism promotion is defined as activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists. A May 2018 economic analysis prepared by Dean Runyan Associates for the Washington Tourism Alliance indicates 16 percent of Kitsap County overnight visitors stay in commercial lodging and account for 54 percent of visitor spending. 81 percent of Kitsap County overnight visitors stay in private homes and account for 43 percent of visitor spending. Below is a recap: Lodging Tax Process Review May 2, 2019 Page 5 of 16 While tourism is often associated with leisure travel, some definitions specify business travel as well. Based on rough estimates provided by three Bremerton inns, Puget Sound Naval Shipyard contract workers comprise the majority of lodging stays, accounting for approximately 75 percent (or more) of their business. Thus, in terms of overnight visitors, it seems Bremerton is presently more of a destination for business travelers rather than leisure. The primary activities of business tourists are work-related, such as consultancy, meetings, conferences, etc. Secondarily, business tourists are like leisure tourists, engaging in activities such as dining out, recreation (golf), shopping, sightseeing, etc. Leisure tourism often occurs during the summer months, whereas business travel can also be during the less attractive times of the year. The average business traveler is generally expected to spend more money than the average leisure traveler. The charts below depict annual historical lodging and food and beverage service revenue generated in Bremerton from 2005 through 2017. These charts show a substantial increase in revenue since 2013: EXAMPLES OF LODGING TAX USES After interviewing multiple jurisdictions, it seems determining how the funds will be allocated is a matter of prioritizing or balancing the wants and needs of the jurisdiction. Some ideas that seem worth noting are mentioned below:  Some jurisdictions allocate lodging tax funds for various golf events, tournaments, and summer golfing.  Many jurisdictions use substantial funds to support internal economic development/tourism promotion departments or internal marketing programs, including websites designed with the tourist in mind.  Pierce County is discontinuing its funding of visitor bureaus and similar agencies and funding festivals instead. The Pierce County representative stated some in her jurisdiction believe there would be no change in tourism if the lodging tax program was discontinued. Accomodations Spending Commercial lodging 16%54% Private home 81%43% Other 3%3% Description Visitor $5,000,000 $7,000,000 $9,000,000 $11,000,000 $13,000,000 $15,000,000 $17,000,000 2005 2007 2009 2011 2013 2015 2017 Bremerton Lodging Revenue $50,000,000 $55,000,000 $60,000,000 $65,000,000 $70,000,000 $75,000,000 $80,000,000 $85,000,000 $90,000,000 $95,000,000 $100,000,000 2005 2007 2009 2011 2013 2015 2017 Bremerton Food & Drink Revenue Lodging Tax Process Review May 2, 2019 Page 6 of 16  Some jurisdictions provide more funding to start up festivals to help them get established, then reduce the funding over time.  In Kennewick, the LTAC is supportive of marketing and Kennewick’s tourism facilities, which have events that generate overnight stays. Kennewick’s LTAC previously supported a fourth of July festival until it learned from hoteliers that the night of this festival had very low occupancy. They currently have no festivals that receive lodging tax support. (Kennewick does not make its lodging tax applications readily available and has a long of history of not funding events or festivals. Although there is no contractual obligation to award lodging tax funds to Kennewick’s facilities, this is what the LTAC supports.2)  Yakima formally committed lodging tax dollars to repayment of the general obligation bonds used to construct its convention center as well as repayment of subsequent general obligation bonds used to expand the convention center. They also use a significant portion of its lodging tax dollars for convention center operations. (Bremerton committed parking revenue to the repayment of its conference center garage construction bonds.)  As previously noted, lodging taxes can also be used to repay bonds for affordable workforce housing within one-half mile of a transit station.  Many jurisdictions award substantial lodging tax funds to their respective event/conference centers. The table below summarizes convention center lodging tax and other subsidies in certain cities in 2017: Although most, if not all, publicly owned conference centers in Washington operate at a loss, many city leaders are supportive of conference centers because of the additional measures of economic impact resulting from conference center visitor spending (direct economic impact), plus tax revenues and jobs created (indirect economic impact). Visitor spending includes lodging, transportation, registration fees, food, shopping, recreation, entertainment, etc. In my October 17, 2018 report on the Kitsap Conference Center (“KCC”) it was noted that although KCC generally is not profitable, it creates an estimated $2 million additional economic impact to the Bremerton economy beyond its own operations. 2 The City of Kennewick provides substantial lodging taxes to the Toyota Center, a multi-purpose arena in Kennewick that is available for conventions, special events, trade shows, concerts, Broadway shows, and is the home of the Tri-City American hockey team. The City of Kennewick does not provide lodging taxes to the Three Rivers Convention Center (reflected in the table), which is owned by the Kennewick Public Facilities District. Lodging Tax Other Total Bremerton 155,000$ 210,000$ 365,000$ Kennewick - 1,798,351 1,798,351 Lynnwood 1,201,788 1,781,629 2,983,417 Ocean Shores 621,953 - 621,953 Wenatchee 1,230,264 - 1,230,264 Yakima 727,013 100,000 827,013 Total 3,936,018$ 3,889,980$ 7,825,998$ Location Convention Center Convention Center Subsidy Lodging Tax Process Review May 2, 2019 Page 7 of 16 JURISDICTION SURVEY RESULTS Jurisdictions included in the survey were considered for their population, conference or events center, sports facilities, and similar festivals and events. Key areas of the LTAC’s process were discussed further with those cities’ staff, including 1) Committee and Voting Structure; 2) Request for Proposals; and 3) Criteria for Applications. Committee and Voting Structure RCW 67.28.1817 requires the LTAC to be comprised of at least five members, appointed by the legislative body, unless the municipality has a charter providing for a different appointment authority.3 One member is an elected official, generally a council member or mayor, who serves as chair of the committee. At least two members represent businesses required to collect the lodging tax, and at least two members are involved in activities authorized to be funded by the lodging tax. There must be an equal number of collecting and receiving members. Each of the members is a voting member, including the chair. The committee may include additional voting members with equal membership, or a nonvoting County elected official member. Some jurisdictions had more members than the required minimum, as shown below:  Anacortes, Kirkland, Kitsap County, and Wenatchee have 7 members.  Bainbridge Island has 6 members, with a 2nd Council Member serving as Vice-Chair who is a non-voting member.  Bellingham’s LTAC is a sub-committee of its 12-member Tourism Commission.  Pierce County has 12 members including four from the lodging industry, four who are eligible to receive an award, two at large members who are not affiliated with the lodging industry nor the tourism industry, a City official that collects lodging tax that goes to Pierce County, and a County Commissioner who serves as chair. An advantage of additional members is the potential for more ideas; however, additional members can lead to challenges with finding sufficient volunteers and scheduling. Applicant Interviews Each year, Bremerton schedules 30 minute interviews with each applicant although the interviews are generally shorter. One of the jurisdictions interviewed allows 3-5 minutes for each interview while another does not conduct interviews, stating all the information they need should be in the application. Requests for Proposals (RFPs) Most RFPs include more extensive instructions than Bremerton, and they include more information concerning eligibility requirements to receive funding and eligible uses of funds. Some jurisdictions also include checklists with the RFP to help respondents properly complete their applications. A few jurisdictions hold an orientation for new applicants. To ensure applications are complete and to control the volume of information provided in the application, an online fillable PDF form can be developed in-house or an online application management software program can be purchased. 3 Neither Bremerton’s Charter nor BMC provide for a different appointment authority. Lodging Tax Process Review May 2, 2019 Page 8 of 16 Criteria for Rating Applications Several jurisdictions interviewed use formal criteria to rate the applicants. Some of these jurisdictions score the applicants – calculating a numeric score based on criteria ratings. Other jurisdictions, including Bremerton, use criteria as a guideline for evaluating the applicants but do not score the applicants. Following is a list of some criteria used to rate applicants:  The extent the event/program demonstrates the ability to attract visitors from 50 miles or more away and generate overnight stays.  The extent the event/program improves the city’s overall image by providing a positive visitor experience and/or promoting the area’s existing attractions, such as the waterfront.  The extent the event/program will generate a positive economic impact by increasing visitor expenditures in the jurisdiction.  The extent the applicant has a track record in implementing a successful event/program including contract and permit compliance.  The ability of the event to secure additional funding sources beyond City tourism funding.  The applicant partners and collaborates with other City events and organizations in leveraging resources and marketing efforts.  Events that have been in existence for less than three years qualify for bonus points.  Events that take place in the shoulder season (January through June) qualify for bonus points.  The applicant provides measurable outcome performance indicators, i.e. how they will track tourism.  Duration of the activity, i.e. multi-day events.  An event that will later function successfully on its own is preferred.  Preference for projects that leverage award funds with matching funds or donations. The scores are generally used to evaluate and rank the applicants. It is our understanding that the scores are not used to compute the amount of the lodging tax award. Most, if not all, jurisdictions want lodging tax dollars to go toward efforts that will increase tourist spending in lodging, food and drink, entertainment, and shopping. However, quantifying tourist spending is costly. A 2012 report prepared by the Joint Legislative Audit and Review Committee (“JLARC”) found that the economic impact data submitted by many lodging tax recipients is unreliable. The JLARC report stated that for many small nonprofit events and facilities, the cost to conduct a valid economic impact study could potentially use up a large portion of the lodging tax revenue the nonprofit received. Several jurisdictions we interviewed commented on how unreliable the overnight stay estimates provided by the lodging tax applicants are. Hoteliers are likely in the best position to know which events lead to heads in beds although there can be some reluctance to share proprietary information. If it is communicated to the hoteliers that the City recognizes lodging as an important industry to the City and that the City wants to help the hotels by supporting facilities or events that support their industry, the hoteliers may be more receptive to sharing that information. A one-time six-year monthly trend report (Smith Travel Trend Report) can be purchased for $550 that includes hotel/motel occupancy, average daily rate, revenue per available room (RevPAR), supply, demand and revenue. The following Bremerton motels are included in the Lodging Tax Process Review May 2, 2019 Page 9 of 16 data (and you can pick and choose which hotels you want to include in the report): Motel 6, Super 8, Quality Inn, Hampton, Fairfield, and Baymont. The City could request lodging tax funding for this report. TOURISM PROMOTION AREAS Another funding source for tourism promotion is a fee charged by hotels in a Tourism Promotion Area (“TPA”) for overnight and short term stays under 30 days (RCW Chapter 35.101). The TPA allows up to $2 per night for an additional charge on lodging. Hoteliers in Kennewick requested a TPA be put in place. The Kennewick TPA was initially set at $1.50 per room night but was so successful that the hoteliers asked to raise it to $2.00 per room night. The Kennewick TPA board is separate from LTAC. The funds are used for tourism promotion with efforts focused specifically on advertising outside the regional market to bring tourism from Western Washington, Montana, Idaho and Oregon. It is a very intentional effort tied to heads in beds. Kennewick’s TPA was established through ordinance. Having hoteliers request the TPA made implementation easier. An added benefit of the TPA is that it provides useful information for tracking occupancy/room nights. OTHER MATTERS Some cities have developed a Tourism Strategic Plan. The strategic plans include tourism trends, best uses of funds, and is a useful tool for elected officials. Anacortes, Lynnwood, and Pierce County are a few of the jurisdictions with strategic plans. Their plans were prepared by either an ad-hoc committee or a consultant. The committee was comprised of volunteers and council members, and the consultant was paid with lodging tax funds. Please contact me if you have questions or need additional information. Sincerely, Jennifer L. Sims CPA/CFF, CFE City Auditor cc: Mayor Wheeler City Council DeWayne Pitts, Finance Director Mike Riley, Assistant Finance Director Lodging Tax Process Review May 2, 2019 Page 10 of 16 Exhibit A Recommendations/Considerations 1. Whether it is for conference center debt, festivals, affordable housing, a balanced approach, or some other strategy, Council needs to decide generally how it wants lodging tax funds used for the City; and should consider communicating its lodging tax priorities to the LTAC at the front end of the process. This could be in the form of a letter. 2. In determining its lodging tax strategy, Council members undoubtedly have competing preferences; however, Council has a fiduciary duty to Bremerton residents and should focus on maximizing the impact of taxpayer dollars. 3. If the LTAC disagrees with Council’s direction (above), it certainly has the option of responding with its rationale and case for alternative funding ideas. 4. If after the LTAC submits its recommendations (at the end of the process), Council disagrees with those recommendations, Council should submit its proposal to the LTAC at least 45 days before final action on or passage of the proposal (i.e. budget) by the municipality. The LTAC should then submit comments on Council’s proposal, including an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the lodging tax fund. Council is not required to submit an amended proposal and can award an amount that is different from the amount recommended by the LTAC. 5. The LTAC should provide more extensive application instructions and include more information such as eligibility requirements to receive funding and eligible uses of funds in the application or application instructions. 6. The LTAC may want to consider using an online application process, purchased from an outside vendor4 or potentially developed in-house. Features that could be added to an online process include requiring fields to be completed before continuing the application and limiting the number of characters in fillable PDF forms. 7. The LTAC is currently requesting financial statements but is not specifying the time period. Applications reviewed from 2019 provided six-month profit and loss statements (January through June 2018) rather than a full fiscal year. Requesting the most recent two fiscal years of detailed profit and loss statements (including specifics of other income sources) and year- end balance sheets is recommended. Some jurisdictions also request operating budgets. 8. The LTAC chair should make sure the LTAC committee members are reviewing all of the relevant information provided with the applications, particularly the financial statements that could contain pertinent information that may affect lodging tax decision making, such as other income sources and profitability. For example, the Visit Kitsap profit and loss statement reports the following income in the first six months of 2018: 4 The City currently uses Fluid Review, a purchased online application management software, for its Community Development Block Grant (“CDBG”) application process. Lodging Tax Process Review May 2, 2019 Page 11 of 16 And below is the Historic Ships “Contributed Support” income for the first 4 ½ months of 2017 and 2018: At a minimum, the LTAC should have a basic understanding of the applicant’s other income sources, how much is being spent on direct marketing, and the applicant’s profitability. 9. The LTAC Chair is a voting member and should vote (unless there is a conflict.) 10. The LTAC Chair could be instrumental in communicating the Council philosophy to the LTAC. 11. The criteria for determining award amounts depends on the particulars of any given city. Some considerations the City may wish to include in its criteria include: a. Extent the funds will be used for out of area marketing b. The estimated financial impact the facility, event or marketing has on the City c. Cap award amounts by type (festival, capital improvement, etc.) d. A sunset provision for applicants that limits the number of years they can apply e. Separate criteria (and process) for new applicants f. Funding provisions for events that bring business during the shoulder season (January through June) 12. Written procedures need to be updated and should be sufficiently detailed that if current lodging tax staff was unable to perform her job someone else could step in and proceed. 13. The application should include questions and document requests that help the LTAC assess how well the use of funds aligns with Council’s funding priorities. 14. Consider offering or requiring an orientation for new applicants. 15. Consider reducing the time allotted for applicant interviews.. 16. Consider tracking the relative contribution of lodging tax revenues to the total cost of the event, as well as to the number of tourists and lodging stays reported for the event or facility. Lodging Tax Process Review May 2, 2019 Page 12 of 16 Exhibit B Examples of Lodging Tax awards in 2016 Activity Name 2016 Funds Awarded City of Anacortes street parklet purchased by city to enhance space in downtown Anacortes by allowing visitors, etc., the opportunity to sit and enjoy the city $11,454 City of Anacortes restroom maintenance 2,335 Anacortes Police Department Oyster Run 10,000 City of Chehalis Wedding Show 13,500 Chelan Parks Department: debt, maintenance, capital purchases 296,159 Chelan Golf Course (city owned) summer golfing 26,773 Clallam County Parks: mowing, weeding, garbage, signs, out-of-area advertising etc 28,899 Clark County: debt service on event center 397,231 Cowlitz County Tourism Department for marketing5 178,225 City of Edmonds construction of new downtown restroom 60,000 City of Fife marketing program used for the management of the lodging tax fund, projects, and contracts. Used to manage the overall marketing activities, direct sales and event management for the City of Fife. 77,000 City of Fife venue sales used to increase the marketing span for event sales in Fife 72,000 City of Fife visitor website: create, update and manage the City of Fife website as a marketing tool for visitors, travelers, and businesses. 38,490 Town of Friday Harbor custom benches for a pocket park 6,275 City of Gig Harbor tourism promotion (staff salaries, oper costs, advertising, etc) 276,500 Grays Harbor County Tourism operations and marketing 848,780 City of Kennewick Toyota Center and Arena (event center) 878,850 City of Kirkland Tourism Program 223,818 Kitsap County awarded to Visit Kitsap Peninsula 209,000 City of Lacey Regional Athletic Complex 150,000 City of Lakewood Waughop Lake Trail 100,000 City of Leavenworth Facilities tourism expenses pertaining to public restrooms, cost allocations for equipment and central services, garbage, ice melt, repair and maintenance of downtown restroom and park facilities, etc. 495,975 Lewis County IT for Discoverlewiscounty.com 85,000 City of Long Beach destination marketing 230,000 City of Tacoma debt service for Greater Tacoma Convention Center 4,310,312 5 The county’s tourism department link connects to an impressive Mt. St. Helens tourism website. Lodging Tax Process Review May 2, 2019 Page 13 of 16 Exhibit C Examples of Lodging Tax awards in 2017 Activity Name 2017 Funds Awarded City of Chelan debt service for parks facility improvements for the marina & beach $138,068 City of Chelan golf facilities: operations, clubhouse repairs, and equipment 121,000 City of Colville: electricity at a city park 26,470 Cowlitz County: City of Kelso signage 52,248 City of Dupont: City of Dupont event/festival overtime 15,290 City of Dupont: Awarded the Home Course for the Collegiate Open 14,700 City of Dupont: Mayor’s Cup Golf Tournament 5,000 City of Dupont: Tourism coordinator 96,063 City of Fife: Dacca Park restroom 100,000 Town of Friday Harbor: Construction and art acquisition for new pocket park 59,851 Port of Friday Harbor: Facility and operation upgrades for service from Victoria, BC 9,700 City of Gig Harbor tourism promotion (staff salaries, oper costs, advertising, etc) 337,000 City of Kalama: City sponsored street dance night prior to car show to draw overnighters 3,025 City of Kelso: signage 100,000 Kitsap County: Visit Kitsap 270,000 Kitsap County: WA State Science and Engineering Fair (2-day event) 20,000 Ocean Shores: Convention center operations 937,941 Ocean Shores: Convention center marketing campaign 72,600 City of Washougal: Portion of employee salary for social media, web development, event assistance, with 20%+ of employee time for tourism 11,498 Lodging Tax Process Review May 2, 2019 Page 14 of 16 Exhibit D Entities that Received LTAC Funds from Bremerton and Other Jurisdictions 2016 and 2017 The table above shows the entities that received lodging tax funds from Bremerton and other jurisdictions in 2016 or 2017. Amounts in the table include lodging tax funds only – the recipients have additional income sources that are not shown above. Bremerton Others Total Bremerton Others Total Bremerton Symphony 17,000$ 5,000$ 22,000$ 25,000$ -$ 25,000$ Kitsap County Historical Society & Museum 14,000 70,000 84,000 21,000 30,000 51,000 Washington State Science & Engineering Fair 19,000 7,500 26,500 20,000 20,000 40,000 Visit Kitsap Peninsula - 238,725 238,725 18,000 306,000 324,000 Description 2016 LTAC Award From 2017 LTAC Award From Lodging Tax Process Review May 2, 2019 Page 15 of 16 Exhibit E Documents Considered and/or Analyzed 1. King County Website – Lodging Tax 2. Revised Code of Washington Chapter 67.28 3. Bremerton Municipal Code 2.38 4. Joint Legislative Audit & Review Committee (JLARC) 2014-2017 Activity Specific Report 5. City of Bremerton – Request for Proposals including Applications and Rating Criteria 6. Attorney General Office Opinion dated August 17, 2016 7. Economic Analysis by Dean Ryan Associates dated May 2018 8. Department of Revenue Gross Business Income Report 9. Kitsap Conference Center Report dated October 17, 2018 10. JLARC Report on Economic Impact dated 2012 11. RCW Chapter 35.101 12. Anacortes Tourism Strategic Plan 13. Lynnwood Tourism Strategic Plan 14. Pierce County Tourism Strategic Plan 15. Other miscellaneous research Lodging Tax Process Review May 2, 2019 Page 16 of 16 Exhibit F Individuals Who Provided Information 1. Steve Groom, Finance Director (Yakima) 2. Dan Legard, Finance Director (Kennewick) 3. Lee Reyes, Administrative Services Manager (Kitsap County) 4. Joann Stewart, Planning, Community & Economic Development Administrative Assistant (Anacortes) 5. Shannon Taysi, Planning & Community Development Program Specialist (Bellingham) 6. Angela Folkers, Finance Director/City Clerk; and Joe Martin, Council Member/2018 LTAC Chair (Ocean Shores) 7. Christy Murray, Economic Development Project/Tourism Manager (Lynnwood) 8. Katherine Sorgenfrei, Economic Development Program Manager (Pierce County) 9. Philly Marsh, Economic Development Special Projects Coordinator (Kirkland) 10. Allison Williams, Executive Services Director (Wenatchee) 11. Hannahlee Hallers, Legislative Assistant (Spokane) 12. Roz Lassoff, Executive Assistant (Bainbridge Island) 13. Mary McCluskey, Parks & Recreation Director (Poulsbo) 14. Toni Nelson, Finance Policy Consultant, Municipal Research Services Center (MRSC)