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06/12/2019 STUDY SESSION PACKET
______________________________________________________________ CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280 JUNE 12, 2019 CITY COUNCIL STUDY SESSION 5:00 PM in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public, but there will be no opportunities for input or participation; no action is anticipated; and the content of these items is subject to change. If approved by Council, the items will be placed on the June 19, 2019 Council Meeting Agenda: A.BRIEFINGS ON AGENDA ITEMS 1.Sole Source Purchase of Automated Playback Equipment from CASTUS for Bremerton Kitsap Access Television 2.Contract with Pape & Sons Construction, Inc. for the Marine Drive Stormwater LID Retrofit 3.Purchase of Replacement Festoon Lighting from CED for 4th Street between Pacific and Park Avenues 4.Ordinance Amending Section 13.04.140 of the Bremerton Municipal Code Relating to Liquor in City Park 5.Amendment No. 1 to the Consulting Agreement with BMcConsulting, LLC for Lobbying Services B.GENERAL COUNCIL BUSINESS Briefing on Legislative Issues – Bryan McConaughy of BMcConsulting, LLC Review and Revise the Request for Proposal (RFP) Guidelines used by the Lodging Tax Advisory Committee (per 2019 City Council Goal #2) – Council President Eric Younger Other General Council Business C.ADJOURNMENT OF STUDY SESSION Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations should contact the City Clerk’s Office at (360) 473-5323 at least 24 hours prior to the meeting. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: June 12, 2019 Sole Source Purchase of Automated Playback Equipment from CASTUS for Bremerton Kitsap Access Television COUNCIL MEETING Date: June 19, 2019 Department: Finance Presenter: Jon Rauch Phone: (360) 473-5012 SUMMARY: BKAT is replacing its four-year-old playback system with the purchase of a CASTUS “Quick Roll Multi Channel Video Server”. The job of this unit is to allow staff to upload, schedule and play programs on BKAT and BKAT.Org. CASTUS is the only product that plays nearly all types of video files. As new types of video files are introduced, the CASTUS can be easily updated to accept them. The current playback system is outdated and will not play the latest types of video files, forcing staff to spend valuable time converting files to make them compatible. Additional features: Multi week scheduling, Two channel playback for cable tv and streaming. Web based interface for remote access. Graphic overlays and crawling text for emergency and promotional information. ATTACHMENTS: 1) Castus Estimate; 2) Castus Fact Sheet; and 3) Sole Source Letter FISCAL IMPACTS (Include Budgeted Amount): The purchase price of $40,964.50 is included in the BKAT 2019 Capital Improvement budget. (‘Project 8407’ “Master Control Upgrade” - $41,500.00) STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve sole source purchase of automated playback system for BKAT from CASTUS in the amount of $40,964.50; and authorize the Mayor to finalize and execute the purchase with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A1 CASTUS Corporation 165 NE Juniper Street Suite 200 Issaquah, WA 98027 US (800) 215-3880 nathan@castus.tv castus.tv ADDRESS Bremerton Kitsap Access Television 7266 Tibardis Rd NW Bremerton, WA 98311 United States SHIP TO Bremerton Kitsap Access Television 7266 Tibardis Rd NW Bremerton, WA 98311 United States ESTIMATE #1115 DATE 07/30/2018 EXPIRATION DATE 04/30/2019 SALES REP Nathan Bosseler DESCRIPTION QTY RATE AMOUNT CASTUS QuickRoll 4.0 HD (2) Channel Video Server with (2) Go Live/Record Inputs (2) channel HD/SDI & IP outputs with (2) HD/SDI or IP inputsSchedule creator and editor interface- yearly, monthly, weekly or dailyWeb interface with confidence monitors Playlist and multi-region playlist creator/editorVideo editor for assembling and trimming clipsRSS crawl overlay capability File manager libraryVideo input and live/record controlsAudio input and automatic background music detection Built in audio normalization for outputsInventory, channel and run-log reporting(8) global overlays per channel HDMI preview channelDVD to file rip utilityExternal HD/SDI & IP router switcher control Hardware:3RU Chassis with redundant power supply 8TB Harddrive with RAID 58GB RAM(2) HDSDI + (2) IP Outputs and (2) HDSDI or (2) IP Inputs 120GB SSD for CASTUS OS24X DVD-RWDimensions- 17.5" width X 19" depth X 5.25" height INCLUDES 3 YEAR HARDWARE WARRANTY 1 23,995.00 23,995.00T 16TB RAID 5 upgrade for QuickRoll (upgrade from standard 8TB)1 1,895.00 1,895.00 CASTUS QuickStream Server- Video On Demand & Live Streaming Service 1 year hosting for HD live streaming and 2TB VOD cloud storage VOD/live streaming widget for website that includes-Playlists, most recent, agenda chapters, custom layout, play count and reports & online schedule guide. Admin control panel for management and customization options. Hardware: 2RU rack mount chassis4TB Internal storageOn board VGA, ethernet ports and USB built in Dimensions- 17.5" width X 19" depth X 3.5" height INCLUDES 3 YEAR HARDWARE WARRANTY 1 8,250.00 8,250.00T CASTUS C4 Support and Maintenance Includes- • Access to the CASTUS Forum, with rapid response times, for up to 4 employees. • A dedicated support email address that automatically generates a support ticket for you, instantly notifying our support team.• Access to a live, certified CASTUS representative over the phone 9a to 5p (PST). • 2 scheduled training sessions for new hires, or refresh courses for existing employees.• 2 in-depth sessions with a CASTUS technician 3 1,200.00 3,600.00 This estimate is for a QuickRoll 202 with a 16TB storage upgrade option, QuickStream for VOD and live streaming and 3 years pre-paid for CASTUS C4 support and maintenance. SUBTOTAL 37,740.00 TAX (10%)3,224.50 TOTAL $40,964.50 Accepted By Accepted Date CASTUS Corporation 165 NE Juniper Street Suite 101 Issaquah WA, 98027 www.CASTUS.tv Web browser based user interface. Internal dynamic messaging capability with support for text, graphics and video.FEATURES -Zero transcoding - HD/SD compatible out of the box -Upload & schedule a program in seconds -Edit videos on a non-linear timeline in our web UI -Add graphic overlays on any channel in seconds -Output HD & SD signals out of the same box -Schedule & record incoming video inputs in HD or SD -Monitor your channels from the web UI -Create text crawls in seconds, with support for RSS -All channels share one library, with a file manager -Play music during slideshows automatically -Automatically fill gaps in schedules -Reporting for inventory, channels & runlog -Reliable and attentive support with C4 ADDITIONAL OPTIONS -Additional HD-SDI or IP channels -Additional HD-SDI or IP recordable inputs -Additional storage - up to 32TB OVERVIEW Designed and engineered by broadcast professionals, QuickRoll is the next generation video scheduling and broadcast automation server. QuickRoll seamlessly integrates multi-channel scheduled playout, multi- input ingest capability, graphic overlays, video editing, file management and more into one easy to use web interface. Built on a Linux operating system, QuickRoll is reliable and secure. Real-time Linux-based broadcast automation HD/SD Multi Channel Video Server QuickRoll 800.215.3880Call us today at- QuickRoll is a powerful multi-tasking, scalable video playout server with extensive graphic overlay capabilities, integrated into a single 3RU server chassis. QuickRoll provides a web- based file manager workflow, allowing you to upload, schedule and play programs in seconds with zero transcoding. Power Dual 600 Watt power supplies Power Consumption 200 Watts (max) Dimensions 19”d X 17”w X 5.5”h Weight 55lb PHYSICAL Operating System Linux CASTUS OS Control Interface Web Interface (Firefox or Chrome) Network Connection (2) 1 gigabit connections, optional 10 GbE card Data Center Integration NTP Controls BlackMagic IP/SDI routing switcher, Knox RS232 routing switcher Uploading Content HTTP Web Interface & FTP Closed Captioning EIA-608 (Analog Line 21) and CEA-708 (Digital TV) Total HD/SD inputs/outputs 8/8 Total Channel Overlay Regions (8) 1-3 channels (6) 4 channels (2) 4+ channels SPECIFICATIONS Video & Audio Output HD-SDI HD or SD uncompressed video with embedded audio IP Output MPEG2 Transport Stream with MPEG2 or H.264 video and AAC, AC3 or MPEG audio Preview Output HDMI Output for internal preview channel OUTPUTS Physical Inputs HD-SDI or IP over ethernet with a 3.5mm line-in audio input Supported Formats MPEG2, MPEG4, vob, m2ts, mov, avi, wav, mp4, m4a, mp3, AAC & AC3 INPUTS Options 8TB, 16TB, 24TB or 32TB Redundancy RAID 5 or RAID 6 per client request Operating System 120GB SSD internal drive for CASTUS & Linux Operating System Integrates with QuickStream VOD, Facillis STORAGE Working for and with our residents to establish Bremerton as Puget Sound’s most beautiful and livable waterfront city ! Bremerton Kitsap Access Television 7266 Tibardis Rd NW Bremerton, WA 98311 (360) 473-5012 DATE: 5/24/19 TO: Procurement File FROM: Mike Riley SUBJECT: Sole Source Determination In accordance with Bremerton Municipal Code 2.76.090, Sole Source Purchases, the purpose of this memorandum is to document the necessity of sole source procurement methodology for the purchase of (1) CASTUS “Quick Roll Multi Channel Video Server”. Reasoning: BKAT is replacing its four-year-old playback system with the purchase of a CASTUS “Quick Roll Multi Channel Video Server”. The job of this unit is to allow staff to upload, schedule and play programs on BKAT and BKAT.Org. CASTUS is the only product that plays back virtually any video file format (due to the broad range of file types and specification that the public submits to BKAT). As new types of video files are introduced, the CASTUS can be easily updated to accept them eliminating the need to purchase additional or replacement hardware. The current playback system is outdated and will not play the latest types of video files, forcing staff to spend valuable time converting files to make them compatible. CASTUS is an Issaquah company that will allow BKAT to have a relationship with a vendor that is only an hour away. Additional features: Multi week scheduling, Two channel playback for cable tv and streaming. Web based interface for remote access. Graphic overlays and crawling text for emergency and promotional information. Cost/Quote support: $40,964.50. Our staff believes this is a fair and reasonable price. Therefore, it is my determination that it is in the City’s best interests to purchase the CASTUS “Quick Roll Multi Channel Video Server” through direct negotiation, pursuant to BMC 2.76.090 and 2.76.010, and that a sole source purchase of this Video Playback Server is justified for this procurement. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: June 12, 2019 Contract with Pape & Sons Construction, Inc. for the Marine Drive Stormwater LID Retrofit COUNCIL MEETING Date: June 19, 2019 Department: PW & U Presenter: K. Ketterer Phone: (360) 473-5334 SUMMARY: Stormwater runoff entering Oyster Bay is often contaminated with oils and other materials that contribute to poor water quality in Oyster Bay; that in turn contributes to poor habitat for wildlife, including salmon and shellfish. The City was awarded a grant from the Department of Ecology to treat a portion of the stormwater entering Oyster Bay by installing 4 water quality vaults in 3 locations in West Bremerton. Four bids were submitted and Pape & Sons was the lowest responsible and responsive bidder with a bid in the amount of $888,888.00. ATTACHMENTS: 1) Contract; 2) Bid Tabulation; 3) Vicinity Map; 4) Summary FISCAL IMPACTS (Include Budgeted Amount): The project was in the 2019 CIP and budgeted for $664,747; the Ecology grant amount is $498,560. The construction bid received was approximately $300,000 higher than the engineer’s estimate. Additional funds for the project exists in the current stormwater capital fund and a budget adjustment is not required. STUDY SESSION AGENDA: ☐ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☒ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Award the contract for the Marine Drive Stormwater LID Retrofit to Pape & Sons, Construction Inc. in the amount of $888,888.00; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A2 City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-39 May 2019 Contract Documents Contract CONTRACT (Page 1 of 4) THIS AGREEMENT is dated the day of in the year 20___, by and between the City of Bremerton (hereinafter called CITY) and (hereinafter called CONTRACTOR). CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: ARTICLE 1. WORK. CONTRACTOR shall complete the WORK as specified or indicated in the CITY’s Contract Documents entitled Marine Drive Stormwater LID Retrofit. ARTICLE 2. CONTRACT TIMES. The WORK shall obtain Physical Completion within 45 working days after the commencement date stated in the Notice to Proceed. Time is of the essence as to each and every deadline set forth in this agreement. This provision has been specifically negotiated. ARTICLE 3. LIQUIDATED DAMAGES. CITY and the CONTRACTOR recognize that time is of the essence for this Agreement and that the CITY will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Section 1-08.8 of the Standard Specifications which may be modified by the Special Provisions. They also recognize the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by the CITY if the WORK is not completed on time. Accordingly, instead of requiring any such proof, the CONTRACTOR shall pay the CITY liquidated damages in the amount of $1,000 per day after the date of Physical Completion for each phase. ARTICLE 4. CONTRACT PRICE. CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract Documents in the amount set forth in the Bid Proposal, which shall include sales tax as provided in Section 1-07.2(2) of the Special Provisions. ARTICLE 5. PAYMENT PROCEDURES. CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the Standard Specifications which may be modified by the Special Provisions. Applications for Payment will be processed by ENGINEER as provided in the Special Provisions _____________ Contractor Initials City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-40 May 2019 Contract Documents Contract CONTRACT (Page 2 of 4) ARTICLE 6. CONTRACT DOCUMENTS. The Contract Documents which comprise the entire agreement between CITY and CONTRACTOR concerning the WORK consist of this Contract and the following attachments to this Contract: x Notice Inviting Bids, x Bidders Checklist, x Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and all required certificates and affidavits, x Performance Bond, x Payment Bond, x Standard Specifications, x Amendments to the Standard Specifications, x Special Provisions, x Appendices x Contract Plans, x Addenda numbers __1___ to ___1__, inclusive, x Change Orders which may be delivered or issued after Effective Date of the Agreement and are not attached hereto. There are no Contract Documents other than those listed in this Article 6. The Contract Documents may only be amended by Change Order as provided in Section 1-04.4 of the Standard Specifications which may be modified by the Special Provisions. ARTICLE 7. INDEMNIFICATION. The CONTRACTOR and CITY acknowledge and agree that they have negotiated the following in accordance with the requirements of RCW 4.24.115 and the CONTRACTOR specifically waives his immunity under industrial insurance under Title 51 RCW. To the fullest extent permitted by Laws and Regulations, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY, ENGINEER, their consultants, subconsultants, and the officers, directors, employees, and agents of each and any of them, against and from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, all claims and liability arising under, by reason of, related, or incidental to the Contract Documents or any performance of the WORK, but not from the sole negligence or willful misconduct of the CITY and/or the ENGINEER as further defined in the Contract Documents. The provisions of this section shall survive the termination of the contract. _____________ Contractor Initials City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-41 May 2019 Contract Documents Contract CONTRACT (Page 3 of 4) ARTICLE 8. ASSIGNMENT No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. The CITY, in its sole discretion, may refuse to allow the CONTRACTOR to assign any or all of its duties, rights and/or responsibilities under the Agreement, except with regards to an assignment of funds for security purposes. In the case of an assignment for security purposes the CITY may condition its approval to the extent it deems necessary to assure that there will be adequate funds to complete the WORK and to pay a subcontractors and suppliers. ARTICLE 9. THIRD PARTY BENEFICIARY All parties agree that the State of Washington shall be, and is hereby, named as an express third- party beneficiary of the contract, with full rights as such. _____________ Contractor Initials City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-42 May 2019 Contract Documents Contract CONTRACT (Page 4 of 4) CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect of all covenants, agreements and obligations contained in the Contract Documents. IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be executed the day and year first above written. CITY: City of Bremerton CONTRACTOR: By By [CORPORATE SEAL] Attest Attest Address for giving notices Address for giving notices License No. Approved as to Form: Agent for service of process: (Signature) (Title) City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-43 May 2019 Contract Documents Contract Certificate CONTRACT CERTIFICATE (if Corporation) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Board of Directors of the ___________________ ____________________________________________________________________________ ____________________________________________________________________________ a corporation existing under the laws of the State of ____________________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that _________________________________________________, as ______________________ President of the Corporation, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this Corporation and the City of Bremerton and that his/her execution thereof, attested by the Secretary of this Corporation, and with the Corporate Seal affixed, shall be the official act and deed of this Corporation.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the corporation this _____, day of ___________________, 20___. (Secretary) (SEAL) City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-44 May 2019 Contract Documents Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-45 May 2019 Contract Documents Contract Certificate CONTRACT CERTIFICATE (if Limited Liability Company) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Members of the __________________________ ____________________________________________________________________________ ____________________________________________________________________________ a Limited Liability Company existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ and ___________________, as Members of this Limited Liability Company, be and are hereby authorized to execute the Agreement dated _________________, 20___, to the City of Bremerton by this Limited Liability Company and that their execution thereof shall be the official act and deed of this Limited Liability Company.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. A Limited Liability Company By: Member By: Member (SEAL) City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-46 May 2019 Contract Documents Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-47 May 2019 Contract Documents Contract Certificate CONTRACT CERTIFICATE (if Partnership) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Partners of the ___________________________ ____________________________________________________________________________ ____________________________________________________________________________ a partnership existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ , as ______________________ of the Partnership, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this Partnership and the City of Bremerton and that his/her execution thereof attested by the _____________________ shall be the official act and deed of this Partnership.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. Partner (SEAL) City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-48 May 2019 Contract Documents Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-152 Marine Drive Stormwater LID Retrofit I-49 May 2019 Contract Documents Contract Certificate CONTRACT CERTIFICATE (if Joint Venture) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Principals of the __________________________ ____________________________________________________________________________ ____________________________________________________________________________ a joint venture existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ , as ______________________ of the Joint Venture, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this joint venture and the City of Bremerton and that his/her execution thereof attested by the _____________________ shall be the official act and deed of this Joint Venture.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. Managing Partner (SEAL) END OF AGREEMENT Site 1 Site 2Site 3 Marine and Kitsap Way SW Treatment Site Vicinity Map Esri, HERE, Garmin, © OpenStreetMap contributors, and the GIS user community, Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community 1/14/2019, 11:33:53 AM 0 0.1 0.20.05 mi 0 0.15 0.30.07 km 1:9,028 USDA FSA, DigitalGlobe, GeoEye, CNES/Airbus DS | County of Kitsap, Esri, HERE, Garmin, iPC | Web AppBuilder for ArcGIS Project Scope: Active Grant Contract Oyster and Ostrich Bays have water quality problems that are exacerbated by the discharge of untreated stormwater. Ecolo- gy has awarded a grant to complete construction of the designed system to the City of Bremerton Stormwater Program. This project will install one Modular Wetland System (MWS) & 250’ of infiltration trench on Marine Drive at Dora Ave, and two Modular Wetlands Systems, south of Kelly Rd, to treat runoff prior to discharge into Oyster Bay. The MWS provides basic, enhanced, and phosphorus treatment, and will reduce fecal coliform in runoff from 34 acres that includes: 1.34 miles of ur- ban roads and 17.4 acres of pollution generating impervious surface. MARINE DRIVE & KITSAP WAY STORMWATER TREATMENT RETROFIT CONSTRUCTION PROJECT SCHEDULE 2018—2019 Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sept Oct Key: Design/Ecology approval/Permiƫng Bid/Award ConstrucƟon The Kitsap Way Modular Wetland system will be installed in front of the Oyster Bay Inn on Kitsap Way to treat runoff from 1.5 acres of impervious area on Kitsap Way. MWS Treatment systems remove: 85% of total suspended solids (TSS) 66% dissolved copper, 50% total copper, 66% dissolved zinc, 69% total zinc, 95% motor oil / petroleum hydro- carbons, Total Phosphorus: 64% Ortho Phosphorus: 67% Nitrogen: 45% Phosphorus and nitrogen are nutri- ents that feed algae blooms, includ- ing cyanobacteria (blue-green toxic algae). The MWS will remove and retain debris, sediments, TSS, dissolved and parƟculate metals and nutrients including nitrogen and phosphorus, bacteria, BOD, oxygen demanding substances, organic compounds and hydrocarbons during frequent storm events and conƟnuous dry weather Water Quality Total Maximum Daily Load (TMDL): Sinclair and Dyes Inlets are 303(d) Listed water bodies for elevated fecal coli- form (FC). Oyster and Ostrich Bays are con- nected to Dyes Inlet. In the 1960’s FC and general polluƟon caused shellfish bed clo- sures. This project supports the water qual-ity cleanup plan. Combined Project Cost Budget: $1,000,000 Funding: $498K Ecology SFAP Grant Stormwater Fund Match: $502K Designer: Parametrix Inc, Bremerton Contractor: TBD Project Manager: KaƟe KeƩerer AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: June 12, 2019 Purchase of Replacement Festoon Lighting from CED for 4th Street between Pacific and Park Avenues COUNCIL MEETING Date: June 19, 2019 Department: PW & U Presenter: Thomas Knuckey Phone: (360) 473-2376 SUMMARY: The low voltage drivers for the existing festoon lights were faulty and the lights needed to be replaced with a new system that did not require these drivers. The new lighting system is 120 volts with no drivers and the bulbs are easily replace and available locally. ATTACHMENTS: 1) Invoice for the Material (Updated) FISCAL IMPACTS (Include Budgeted Amount): The amount is in the 2019 City Budget. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the purchase of replacement Festoon Lighting from CED for 4th Street (between Pacific and Park Avenues) in the amount of $25,552.51 (which includes WA State sales tax); and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A3 001 OFPAGE 001 BREMERTON CITY OF 0936-714186 Sold To:Method of Paymen BO From: BO To: Ship To: CED 4503 AUTO CENTER WAY BREMERTON, WA 98312 Tel: 360 377-8585 Fax: 360 373-5065 BREMERTON CITY OF FACILITIES DEPT 345 6TH ST SUITE 100 BREMERTON, WA 98337 (360) 473-2316 06/11/19 ACKNOWLEDGEMENT This is not an Invoice ON ACCT ** ORDER UNRELEASED ** Order No. Order Date FW-12263 PREPAID0052 EH BREMERTON CITY OFACCOUNT NO.JOB NAME AND ADDRESS PROMISE DATE CUSTOMER ORDER SALESPERSON SHIPPING INFORMATION SHIP VIA OUR TRUCK PARK STREET 06/11/19 PRODUCT CODE DESCRIPTION PRICE P E R EXT T Y QUANTITY T D T D % Quantity Ordered SHIPPED Cash Disc C O D E XT 1 19022.63 19022.634 RUNS @ 250FT EACHMISC CALIML2000-24"AT E XT 1 3860.00 3860.00EACH @ 50FT EACHMISC CALIML2000-24-4 RUNS E XT 12 46.67 560.04CAPMISC CALIML2000-EC-END E MERCHANDISE SHIPPING CHARGE TOTAL DEPOSIT: BAL DUE: 0.00 2,109.84 23,442.67 25,552.51 EST. CODE: TO ADVISE YOU PROMPTLY CONCERNING YOUR ORDER, THIS CODE IS USED ON YOUR INVOICES. B - BACK ORDERED. WILL SHIP AS SOON AS RECEIVED UNLESS INSTRUCTED TO CANCEL. C - CANCELLED. NOT IN STOCK. UNABLE TO PURCHASE LOCALLY. TITLE TO MERCHANDISE AND RISK OF LOSS OR DAMAGE PASSES AT POINT OF SHIPMENT. CLAIMS FOR SHORT OR DAMAGED MERCHANDISE SHOULD BE MADE TO CARRIER. MERCHANDISE RETURNED WITHOUT OUR CONSENT WILL NOT BE ACCEPTED. A RESTOCKING CHARGE WILL BE MADE ON RETURNED GOODS UNLESS DEFECTIVE OR THRU ERROR ON OUR PART. A SERVICE CHARGE OF 1 1/2% PER MONTH, BUT NOT TO EXCEED THE HIGHEST AMOUNT LAWFULLY ALLOWED BY CONTRACT IN THIS STATE, WILL BE MADE ON ALL PAST DUE ACCOUNTS. THIS SALE IS SUBJECT TO OUR TERMS LOCATED AT SALES.OUR-TERMS.COM, WHICH WE MAY CHANGE FROM TIME TO TIME WITHOUT PRIOR NOTICE. 25,552.51 0.00 Tax @ 9.00000% NET PAYMENT IS DUE BY THE 15TH OF THE MONTH FOLLOWING PURCHASE CUSTOMER COPY AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No.____________ amending Section 13.04.140 of the Bremerton Municipal Code Relating to Liquor in City Parks Study Session Date: June 12, 2019 COUNCIL MEETING Date: June 19, 2019 Department: Parks & Recreation Presenter: Jeff Elevado Phone: (360) 473-5428 SUMMARY: Section 13.04.140 of the Bremerton Municipal Code under the Park Code currently authorizes sale and consumption of liquor in designated City parks and Public Utility property during special events. These include Harborside Fountain Park, Louis Mentor Boardwalk and Otto Jarstad Park. Service and consumption must be permitted by the Washington State Liquor and Cannabis Board, is limited to beer and wine, and must be administered during an event or activity which is licensed by the City as a special event or authorized by the City Council upon terms and conditions as established by the City Council. Increased demand for special events at parks suited for hosting such events and requests from event organizers to provide for the sale and consumption of liquor within the park during these events has prompted this request to amend BMC 13.04.140 to allow sale and consumption of liquor at additional locations. The proposed amendment will add Pendergast Regional Park, Evergreen Rotary Park, and Lions Park to the list of designated parks in which service and consumption of liquor is authorized when all requirements are met. ATTACHMENTS: 1) Proposed Ordinance (Updated) 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 approve Ordinance No._______ amending Section 13.04.140 of the Bremerton Municipal Code to allow service and consumption of liquor at designated City parks as regulated by the Washington State Liquor and Cannabis Board. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A4 1 ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 13.04.140 of the Bremerton Municipal Code relating to liquor in City Parks. WHEREAS, the City Council desires to amend Section 13.04.14 entitled “Liquor” under the Park Code relating to alcohol within City parks; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 13.04.140 of the Bremerton Municipal Code entitled “Liquor" under the Park Code is hereby amended to read as follows: 13.04.140 LIQUOR. It is unlawful to serve or consume, within any City park, any liquor as defined in RCW 66.04.010(25), as enacted and hereinafter amended, except the service and consumption of liquor is authorized in the following circumstances: (a) The service and consumption of liquor in designated City parks as authorized in subsections (b) though (g) below is; (1) Permitted by the Washington State Liquor and Cannabis Board; and (2) Such service and consumption of liquor is limited to beer and wine. (b) Within Pendergast Regional Park, Evergreen Rotary Park, Lions Park, Harborside Fountain Park and the Louis Mentor Boardwalk when; (1) The service of liquor is administered during an event or activity which is: (i) licensed by the City as a special event pursuant to Chapter 5.36 BMC, or (ii) authorized by the City Council upon terms and conditions as established by the City Council. (ac) Harborside Fountain Park and Louis Mentor Boardwalk. Within the boundaries of the Harborside Fountain Park and the Louis Mentor Boardwalk when: (1) Permitted by the Washington State Liquor Control Board; and (21) Such service of liquor is administered by the operator of the Kitsap Conference Center at Bremerton Harborside, as permitted by the City’s Director of Parks and Recreation, or designee, subject to terms and conditions as established by the Director; or. (3) The service of liquor is administered during an event or activity which is: (i) licensed by the City as a special event pursuant to Chapter 5.36 BMC, or (ii) authorized by the City Council upon terms and conditions as established by the City Council, and (iii) such service and consumption of liquor is limited to beer and wine. (bd) Pendergast Regional Park - Indoor Soccer Center. Within the mezzanine food service area of the Olympic Soccer and Sports Center ("Indoor Soccer Center") located within Pendergast Regional Park when: (1) Permitted by the Washington State Liquor Control Board; (21) Such service of liquor is administered by the operator of the Indoor Soccer Center; and. (3) Such service and consumption is limited to beer and wine. 2 (ce) Eastpark - Bremerton Ice Arena. Within the building of the Bremerton Ice Arena facility ("Ice Arena") located within Eastpark when: (1) Permitted by the Washington State Liquor Control Board; (21) Such service of liquor is administered by the operator of the Ice Arena; (3) Such service and consumption is limited to beer and wine; (42) Such service and consumption, when in the viewing stands area, is limited to private events, not public events; however, service and consumption of liquor are prohibited on the field of play; and (53) Required approval has been granted by the National Parks Service, on behalf of the Secretary of the Interior, pursuant to the deed conveying the property to the City. (df) Evergreen Rotary Park. Sampling of beer and wine and sales of beer and wine within the boundaries of a farmer’s market licensed or permitted area located within Evergreen Rotary Park when: (1) Permitted by the Washington State Liquor Control Board; (21) Authorized by the City Council upon terms and conditions as established by the City Council; and (32) Such services comply with the requirements of RCW 66.24.170, 66.24.175, 66.24.240, and 66.24.244 and other related statutory or regulatory requirements, as currently enacted or hereinafter amended; and (43) The sampling area is located within a forty-eight (48) inch high barrier or other designated booth or stall, the location and aesthetics of which are subject to approval by the Director of Parks and Recreation. (eg) Otto Jarstad Park, which is City utility property maintained by the Department of Public Works and Utilities. Within the boundaries of Otto Jarstad Park, which is City utility property maintained by the Department of Public Works and Utilities, when: (1) Permitted by the Washington State Liquor Control Board; and (2) Such service and consumption of liquor is limited to beer and wine; and (31) Permitted by the City’s Director of Public Works and Utilities, or designee as a private, not a public event, subject to terms and conditions as established by the Director; or (42) The service of liquor is administered during an event or activity which is: (i) licensed by the City as a special event pursuant to Chapter 5.36 BMC, or (ii) authorized by the City Council upon terms and conditions as established by the City Council. For purposes of this section, Section 13.04.140, the authorized service and consumption of liquor includes any related sale of liquor. Private event means events, such as weddings and birthday parties, authorized for use of specific space within a park by private groups pursuant to a permit or rental agreement. SECTION 2. Corrections. The City Clerk and codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener, clerical, typographical, and spelling errors, references, ordinance numbering, section/subsection numbers and any references thereto. SECTION 3. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. 3 SECTION 4. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the___________ day of ____________________, 2019. _________________________________ ERIC YOUNGER, Council President Approved this ________ day of ________________________, 2019. _________________________________ GREG WHEELER, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ _________________________________ ANGELA WOODS, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the ________ day of ______________________, 2019. EFFECTIVE the ________ day of ______________________, 2019. ORDINANCE NO. ________. R:\Legal\Legal\Ordinances\Parks\BMC 13.04.140 Liquor - Final.doc AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Amendment No. 1 to the Consulting Agreement with BMcConsulting, LLC Study Session Date: June 12, 2019 COUNCIL MEETING Date: June 19, 2019 Department: Executive Presenter: Michael Riley Phone: (360) 473-5303 SUMMARY: On October 30, 2018 the City entered into a consulting agreement with BMcConsulting LLC. to provide lobbying services. This amendment extends the term of the contract through June 30, 2020. Payment is to remain the same for the same monthly period, as stated in the original agreement, not to exceed $54,000 annually as identified in the 2019 approved budget. ATTACHMENTS: BMcConsulting LLC Agreement Original; First Amendment to Consulting Agreement (Updated) FISCAL IMPACTS (Include Budgeted Amount) General Fund Non-Departmental (included in 2019 approved budget) total annual compensation is $54,000. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the first amendment with BMcConsulting LLC term extension; and authorize the Mayor to finalize and execute the amendment with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/18 A5 PROFESSIONAL SERVICES AGREEMENT BMcConsulting LLC The City of Bremerton ("City") and BMcConsulting LLC ("Consultant"), referred to collectively as the "Parties," enter into the following Agreement for professional services: I. Scope: The Consultant agrees to perform the services more specifically described in the Scope of Work, including any attachments thereto, attached hereto as Exhibit A, which is incorporated by reference herein. The Scope of Work may be modified only pursuant to Section VII.H of this Agreement. If the Scope of Work provides for unspecified additional services such services shall only be performed upon the express written request of the City. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices in effect at the time such services are performed. II. Term: The City and the Consultant agree that the term of this Agreement will be for one year beginning on July 1, 2018 and ending June 30, 2019. This Agreement may be terminated pursuant to Section IX. III. Compensation: In consideration of the services provided pursuant to this Agreement, the City shall pay Consultant $4,000.00 per month from July 1, 2018 to December 31, 2018 and 5,000.00 per month from January 1, 2019 to June 30, 2019. The Consultant shall submit regular billing statements detailing work performed and amount charged on each task or portion thereof. The descriptions shall conform to and fall within the categories set out in the Scope of Work and/or Fee Schedule. Upon receipt of a conforming billing statement, the City shall promptly process payment. PROVIDED, HOWEVER, the City reserves the right to prioritize scoped work and accelerate and/or delay work tasks under the time frame set forth in Section II herein. The Consultant's labor rates and billing fees shall be as delineated in Exhibit C. Consultant shall not perform work beyond the Scope of Work, nor shall be compensated for such work, unless the Scope of Work or amount of compensation is modified pursuant to this Agreement. Consultant shall only be compensated for additional services if requested pursuant to Section I and, if not otherwise provided, such compensation shall be in accordance with Exhibit C. If a billing statement does not conform to this Agreement, the City may withhold payment until the statement is brought into compliance. Such withholding does not relieve Consultant of its obligations under this Agreement. IV. Relationship of Parties: Consultant represents that it is skilled in the matters addressed in the Scope of Work and is performing independent functions and responsibilities within its field of expertise. Consultant and its personnel are independent Consultants and not employees of the City. Consultant and its personnel have no authority to bind the City or to control the City's employees and other Consultants. None of the benefits provided by the City to its Bremerton/BMcConsulting LLC Lobbying Services Page 1 of 6 employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub -Consultants of the Consultant. Consultant will be solely and entirely responsible for its acts and for the acts of Consultant's agents, employees, representatives and sub -Consultants during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent Consultants to perform the same or similar work. As an independent Consultant, Consultant is responsible for its own management. The City's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over Consultant or its personnel. As an independent Consultant, Consultant is responsible for payment of all taxes and licensing fees necessary to perform its obligations under this Agreement. These taxes and fees include but are not limited to State industrial insurance, Business & Occupation, State professional licensing, and City business licensing. If any taxes or fees due the City have been declared delinquent, the City may withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Consultant. V. Indemnification: A. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the performance of this Agreement except for that portion of the injuries and damages caused by the City's sole negligence, unless Consultant is conducting work pursuant to Subsection B below. The City's review or acceptance of any of the work when completed shall not be grounds to avoid any of these covenants of indemnification. B. Architects, Engineers and Any Other Professional Listed In and Performing Services Defined in RCW 4.24.115. Should a court of competent jurisdiction determine that Consultant's services provided pursuant to this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this Agreement. VI. Insurance: The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in Bremerton/BMcConsulting LLC Lobbying Services Page 2 of 6 connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees, sub -consultants or sub -Consultants. Before beginning work on the project described in this Agreement, the Consultant shall provide a Certificate of Insurance evidencing: 1. Professional Liability insurance with limits no less than $1,000,000 limit per occurrence/claim. 2. Workers Compensation insurance as statutorily required by the Industrial Insurance Act of the State of Washington. Any payment of deductible or self insured retention shall be the sole responsibility of the Consultant. All required policies shall be provided on an "occurrence" basis except professional liability insurance (if required), which may be provided on a "claims -made" basis. The City shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Consultant and a copy of an endorsement that is acceptable to the City, which names the City as an additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all the required insurance policies and endorsements. The City further reserves the right to reject any unacceptable policies and/or endorsements. The Consultant's Commercial General Liability insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. The Consultant's insurance shall be primary and non-contributory insurance as respects the City and shall contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. It shall be an affirmative obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473-5161, or by certified mail, return receipt requested to City of Bremerton, attn: Risk Management, 345 6tn Street, Suite 600, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement. The City also reserves its unqualified right to require at any time and for any reason, proof of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence of coverage. VII. General Conditions: A. Reports and Information: When requested by the City, Consultant shall furnish periodic reports and documents on matters covered by this Agreement. The reports and documents shall be furnished in the time and form requested. Consultant shall maintain Bremerton/BMcConsulting LLC Lobbying Services Page 3 of 6 accounting records in accordance with Generally Accepted Accounting Principles (GAAP) to substantiate all billed amounts. B. Ownership and Use of Records and Documents: Original documents, drawings, designs and reports, including those in electronic format, developed under this Agreement are the property of the City. All written information submitted by the City to the Consultant in connection with the services performed by the Consultant under this Agreement will be safeguarded by the Consultant to at least the same extent as the Consultant safeguards like information relating to its own business. If such information is publicly available or is already in Consultant's possession or known to it, or is rightfully obtained by the Consultant from third parties, Consultant shall bear no responsibility for its disclosure, inadvertent or otherwise. All data, documents and files created by Consultant under this Agreement may be stored at Consultant's office in Gig Harbor, Washington. Consultant shall make such data, documents, and files available to the City upon its request at all reasonable times for the purpose of editing, modifying and updating as necessary until such time as the City is capable of storing such information in the City's offices. Duplicate copies of this information shall be provided to the City upon its request, and at reasonable cost. All documents, including all reports, drawings, specifications, computer software or other items prepared or furnished by Consultant pursuant to this Agreement, are instruments of service with respect to the project and are the property of the City. Any reuse by the City for other than the specific purpose intended will be at City's sole risk. C. Use of Photographs and Images. Consultant shall not use or distribute photographs or images depicting City officials, personnel, property, or equipment whether prepared by Consultant or provided by City without prior written consent of the City. The City will not unreasonably withhold its consent. D. Work Performed at Consultant's Risk: Consultant shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and sub -consultants in the performance of the work hereunder and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. E. Place of Work: The Consultant shall perform the work authorized under this Agreement at its offices in Gig Harbor, Washington. Meetings with the City staff as described in Exhibit A, Scope of Work, shall take place at the City's offices, or at locations mutually agreed upon by the parties. F. Entire Agreement: This Agreement and its Exhibits constitutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. Bremerton/BMcConsulting LLC Lobbying Services Page 4 of 6 G. Severability: Should any part of this Agreement be found void, the balance of the Agreement shall remain in full force and effect. H. Modification: This Agreement may only be modified by written instrument signed by both Parties. I. Written Notices: All communications regarding this Agreement shall be sent to the parties at the addresses listed below by registered or 1 st class mail, or by personal service, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. City Address Greg Wheeler, Mayor City of Bremerton 3456 1h Street, Suite 100 Bremerton, WA 98337 Consultant Address Bryan McConaughy BMcConsulting, LLC 15 Marble Beach Dr. NW Gig Harbor, WA 98332 J. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. K. Non -Waiver of Breach: The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect. L. Compliance with Laws: Consultant shall comply with all applicable Federal, State, and local laws in performing its obligations under this Agreement. M. Choice of Law and Venue: This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. N. Attorneys' Fees: In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney's fees. O. Assignment: Any assignment of this agreement by the Consultant without the written consent of the City shall be void. VIII. Nondiscrimination: Consultant shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, disability, or sexual orientation except for employment actions based on bona fide occupational qualification. IX. Termination: Either party may terminate this Agreement at any time for any reason upon thirty (30) days prior written notice, subject to those obligations set forth in this Agreement Bremerton/BMcConsulting LLC Lobbying Services Page 5 of 6 which arise upon or survive termination. Any Notice by Consultant shall include a report showing the status of all items listed in the Scope of Work current through the termination date. A. Rights Upon Termination: In the event of termination, the City shall pay for all services performed by the Consultant to the effective date of termination, as described on a final . invoice submitted to the City. After termination, the City may take possession of all records and data within the Consultant's possession pertaining to this project which may be used by the City without restriction. Any such use not related to the project which Consultant was contracted to perform shall be without liability or legal exposure to the Consultant. X. Suspension & Debarment. For contracts involving Federal funding, Consultant hereby certifies, by signing this agreement, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. Consultant shall provide immediate written notice to the City if at any time it learns that it is or has become ineligible for certification. Should Consultant enter into a covered transaction with another firm, Consultant agrees by signing this agreement that it will verify that the firm with whom it intends to do business is not debarred, suspended, ineligible, excluded or disqualified. CITY OF BREMERTON CONSULTANT By:r Wheeler Its: a or Date: to ) 30 120 i 8 R:\Legal\Legal\Contracts\I XECU'I'I VE\BMcConsulting Agreement 2018 - Final.doc Bremerton/BMcConsulting LLC Lobbying Services Page 6 of 6 By: ryan McConaughy Its: Principal Date: 1 o l 30 1-3 EXHIBIT A SCOPE OF WORK Consultant shall provide the City of Bremerton with the following governmental affairs services: Work with the City to develop a holistic legislative agenda. Meet with Legislators to promote City legislative agenda items. Develop 2019 legislative agenda for the City. Develop and lobby for Transportation and Capital Budget funding requests identified by the Council and the Mayor. Lobby the Legislature on all issues developed under the legislative program. Lobby defensively on legislation that is introduced that would negatively impact the City. BMcConsulting would register as the City's lobbyist with the Public Disclosure Commission. Attend/monitor Puget Sound Coordinating Council to ensure City of Bremerton interests are addressed. Attend relevant meetings/monitor and assist with specific projects of interest to the City, in particular, the State Route 303 (Warren Avenue/Wheaton Way) Corridor and the Harrison - Eastside Employment Center. If Consultant is hired to support the City of Bremerton during session, the following will be included to the scope of work: Provide the City with a weekly legislative report during the legislative session that includes weekly hearing schedules and a summary of bills important to the City. Identify legislation that would impact the City of Bremerton specifically. Attend all relevant legislative hearings. Develop talking points and testimony, as needed, for meetings with Legislators and testimony before legislative committees; help coordinate such visits with City officials. FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF BREMERTON AND BMcCONSULTING THIS FIRST AMENDMENT, entered into on the date fully executed below, specifically amends the Consulting Agreement (“Agreement”) entered into between the City of Bremerton and BMcConsulting LLC on October 30, 2018. WHEREAS, the parties desire to amend the Agreement, as set forth in this First Amendment, to extend the term of the Agreement for 12 additional months; NOW THEREFORE, for valuable consideration and by mutual consent of the parties, the Agreement is amended as follows: 1. Term Extension. Section I entitled Term of the Agreement, is modified to extend the original term of the Agreement so that the term now ends on June 30, 2020. 2. Compensation. Shall match the terms set forth in the original Consulting Agreement. The City shall pay Consultant $4,000.00 per month from July 1, 2019 to December 31, 2019, and $5,000.00 per month from January 1, 2020 to June 30, 2020, for the extended term. 3. This document will become a supplement of the Agreement and all provisions will apply hereto. All other terms of the Agreement not specifically amended herein shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agreement on the day and year written below. BMcCONSULTING LLC CITY OF BREMERTON By Bryan McConaughy By Greg Wheeler Its Principal Its Mayor DATE: DATE: APPROVED AS TO FORM: ATTEST: Bremerton City Attorney City Clerk R:\Legal\Legal\Contracts\EXECUTIVE\BMcConsulting Amend 1.doc New Proposals 10% Events & Tourism Promotion 30% City Capital Projects 60% Proposed Lodging Tax Allocation ___________________________________________________________ CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 -5280 June 10, 2019 Attn: Council Members As previously discussed, please consider the following options in preparation for the Lodging Tax Discussion at the June 12 Study Session: 1) After setting aside funding of $150,000 for the Admiral Theatre and $200,000 for the Kitsap Conference Center, then of the remaining available funds, 60% could be allocated to City Capital Projects and 40% to Tourism Promotion (including 10% for New Proposals). 2) Key Rating Criteria for the Lodging Tax Advisory Committee to include for Tourism Promotion Requests: Extent of the funds to be used for out-of-area marketing; Established collaboration that groups demonstrate to leverage marketing efforts; and The estimated financial impact the facility, event or marketing will have on the City of Bremerton What Council determines as its Funding Priorities and Guidelines will be provided to the LTAC to be used towards the development of an updated Request for Proposals and Grant Application. ERIC YOUNGER City Council President ______________________________________________________ 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)