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Home My WebLink About07/24/2019 STUDY SESSION PACKET______________________________________________________________ CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280 ** * A M E N D E D * * * JULY 24, 2019 CITY COUNCIL STUDY SESSION 5:00 PM in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public, and except for Items B1 and D, 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 August 7, 2019 Council Meeting Agenda: A.INFORMATION BRIEFING 1. Introduction & Briefing by Jeff Alevy, Executive Director for Kitsap Community Resources B.BRIEFINGS ON AGENDA ITEMS 1.Contract with Sound Excavation, Inc. for the Demolition of Structures at 1317 N. Lafayette Avenue; and related Budget Amendment Action is anticipated... 2.Resolution No. 3318 authorizing Intent to Impose a Sales and Use Tax for Affordable and Supportive Housing in accordance with Substitute House Bill 1406 3.Ordinance providing for the Issuance and Sale of Limited Tax General Obligation Refunding Bonds; and delegating authority to approve Final Terms of the Bonds 4.Renewal of Agreements with West Publishing Corporation for Westlaw Research Subscriptions 5.Ordinance creating new Chapter 5.14 of the Bremerton Municipal Code entitled “Massage Businesses”; and amending Ordinance No. 5357 “City of Bremerton Rates & Fees” 6.Washington State Recreation & Conservation Office (RCO) Funding Board Project Agreement for the Warren Avenue Playfield Renovation Project 7.Ordinance amending Chapter 15.03 BMC entitled "Wastewater" 8.Professional Services Agreement with Parametrix, Inc. for Design and Construction Support Services for the Oyster Bay Beach Sewer Upgrades Project 9.Acceptance of the Pedestrian & Bicycle Safety Program State Funding Grant; and approval of the WSDOT Local Agency Agreement for the Naval Avenue (1st to 15th Street) Pedestrian & Bicycle Enhancement Project 10.Discussion of Affordable Housing Initiatives; and Determination of City Council's Code Amendment Priorities – Senior Planner Allison Satter, Department of Community Development C.GENERAL COUNCIL BUSINESS Public Works Committee Briefing (07/16/19 Meeting) – Chair Kevin Gorman Lodging Tax Advisory Committee Briefing (07/22/19 Open House) – Chair Pat Sullivan Finance, Investment, & Parking Committee Briefing (07/23/19 Meeting) – Vice Chair Kevin Gorman Other General Council Business D.EXECUTIVE SESSION 15-Minutes to discuss Pending Litigation, which is allowed under RCW 42.30.110 (1)(I) Action is anticipated... E.ADJOURNMENT OF STUDY SESSION Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations should contact the City Clerk’s Office at (360) 473-5323 at least 24 hours prior to the meeting. Roof before Roof after Broken oil Furnace before New 95% effiecent gas Furnace after AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Contract with Sound Excavation, Inc. for the Demolition of Structures at 1317 N. Lafayette Avenue Department: DCD Presenter: Janet Lunceford Phone: (360) 473-5213 SUMMARY: The City obtained a court order to clean up the property located at 1317 N. Lafayette Avenue. The City solicited bids to demolish the structures at this site. The requested action is to approve the contract with the lowest responsive bidder, Sound Excavation, Inc. ATTACHMENTS: Bid Proposal from Sound Excavation, Inc. FISCAL IMPACTS (Include Budgeted Amount): The City will file a tax lien on the property. STUDY SESSION AGENDA: ☒ Limited Presentation Action anticipated…. ☐ Full Presentation RECOMMENDED MOTION: Move to approve the contract with Sound Excavation, Inc. in the amount of $26,160.00 for demolition of structures at 1317 North Lafayette Avenue; and amend the Abatement Fund professional services budget expenditure authority by the same amount. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B1 Sound Excavation, Inc. 4904 Kitsap Way Bremerton, WA 98312 Tel: (360) 373-1613 Fax: (360) 792-5964 TO: City of Bremerton Attn: Janet Lunceford 345 - 6th Street, Suite 100 Joe Lockhart Bremerton, WA 98310 Tel: (360) 373-1613 Cell: (360) 710-7020 RE: Blueberry Ridge PlatDemolition at 1317 N. Lafayette Avenue, Bremerton, WA 98312 To: Janet INCLUSIONS: 1.Demo and removal of house, garage and three outbuildings, including foundations from property 2.Removal of all debris, garbage and other non-vegetative items from property 3.Obtain permits for demolition, sewer cap and right of way use 4.Obtain power shut-off and meter removal 5.Obtain gas shut-off and meter removal 6.Cap Sewer 7.Remove any telephone and cable wiring Bid Amount 24,000.00$ W.S.S.T. 9%2,160.00$ Total Bid Amount 26,160.00$ Payment to be made as follows: EXCLUSIONS: Bonds Testing Fees to include Compaction Testing Geotechnical Analysis, Engineering, Surveying, Staking and Locates Asbestos Abatement, Contaminated Soils, Hazardous Materials Exporting Turbid Water from Site All Water, Sewer and Electrical connection fees - to be hooked up by others Pest and Vermin Control or Removal Installation of guard rail or other barrier between garage and Ford Avenue Tree or other vegetation removal, except as necessary to accomplish work and any other items not specifically mentioned in this bid proposal Bid Proposal 7/17/2019 Quote and following terms and exclusions must be signed and returned before any work can be scheduled.Signing this quotation indicates acceptance of the terms and exclusions.Unless Contracting Party has signed and returned this agreement within thirty (30)calendar days of the date first stated above,Sound Excavation,Inc.'s proposal shall be null and void. We are pleased to provide a quote to furnish all labor and material necessary for the above mentioned project: Invoicing by the 25th of the month, payment due on 10th of following month 1 of 2 Payment Terms: Acceptance of Agreement: By: Title: Date: The above price,specifications and conditions are satisfactory and are hereby accepted.You are authorized to do the work as specified. Payment will be made as outlined above. If payments for amount due on this contract or any portion thereof are not paid in accordance with the terms of the contract,the contracting party agrees to pay all cost of collection which shall include reasonable fees if the matter is placed in the hands of an attorney for collection,or if suit shall be brought.A finance charge of 1.5%per month (which is an annual percentage rate of 18%)will be imposed on any portion of your account not paid within 30 days after billing date. 2 of 2 B2 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Resolution No. 3318 authorizing Intent to Impose a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406 Study Session Date: July 24, 2019 COUNCIL MEETING Date: August 7, 2019 Department: Finance Presenter: Michael Riley Phone: (360) 473-5303 SUMMARY: House Bill 1406 authorizes the governing body of the City to impose a local sales and use tax for acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, for the operations and maintenance costs of affordable or supporting housing, and for providing rental assistance to tenants. ATTACHMENTS: Resolution No. 3318 FISCAL IMPACTS (Include Budgeted Amount): None STUDY SESSION AGENDA: ☒ No Presentation Discussed at June 26, 2019 Study Session STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Resolution No. 3318 authorizing Intent to Impose a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406. . COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/18 Page 1 of 2 Affordable Housing Sales & Use Tax RESOLUTION NO. 3318 A RESOLUTION of the City Council of the City of Bremerton, Washington, declaring the intent of the City to pass an ordinance to authorize a sales and use tax for affordable and supportive housing in accordance with substitute house bill 1406 (chapter 338, laws of 2019), and other matters related thereto. WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB 1406”); and WHEREAS, SHB 1406 authorizes the governing body of a city or county to impose a local sales and use tax for the acquisition, construction or rehabilitation of affordab le housing or facilities providing supportive housing, for the operations and maintenance costs of affordable or supportive housing, and for providing rental assistance to tenants; and WHEREAS, the tax will be credited against state sales taxes collected within the City and, therefore, will not result in higher sales and use taxes within the City and will represent an additional source of funding to address housing needs in the City; and WHEREAS, the tax must be used to assist persons whose income is at or below sixty percent of the City median income; and WHEREAS, the City is struggling with affordable housing issues. Many people in the City are paying a major portion of their income on rent. There are people living in places that are not meant to be housing, such as cars or streets. Others are on the verge of homelessness. The City has determined that imposing the sales and use tax, credited against state sales taxes collected within the City, to address this need will benefit its citizens. The revenue from this ordinance will assist those who are in most need of housing assistance; and WHEREAS, in order for a city or county to impose the tax, within six months of the effective date of SHB 1406, or January 28, 2020, the governing body must adopt a resolution of intent to authorize the maximum capacity of the tax, and within twelve months of the effective date of SHB 1406, or July 28, 2020, must adopt legislation to authorize the maximum capacity of the tax; and WHEREAS, this resolution constitutes the resolution of intent required by SHB 1406; and WHEREAS, the City Council now desires to declare its intent to impose a local sales and use tax as authorized by SHB 1406 as set forth herein; NOW THEREFORE, Page 2 of 2 Affordable Housing Sales & Use Tax THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Resolution of Intent. The City Council declares its intent to pass an ordinance to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406, or by July 28, 2020. SECTION 2. Further Authority; Ratification. All City officials, their agents, and representatives are hereby authorized and directed to undertake all action necessary or desirable from time to time to carry out the terms of, and complete the actions contemplated by, this resolution. All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby ratified. SECTION 3. Severability. If any one or more sections, subsections, or sentences of this resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution and the same shall remain in full force and effect. SECTION 4. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this _____ day of __________________, 2019. ERIC YOUNGER, Council President APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney ANGELA WOODS, City Clerk R:\Legal\Legal\Resolutions\Finance\Resolution of Intent to Implement HB 1406 - Final.doc HB 1406 Legislation Summary Kitsap County Human Services 6/24/19 Contacts: Kirsten Jewell 360.337.7286 or Doug Washburn 360.337.4526 Summary HB 1460 adds a new section to RCW Chapter 82.14. It authorizes local governments to retain a portion of sales tax collected in their jurisdiction for the purpose of creating affordable housing. The taxes authorized under this act are subtracted from the sales and use taxes already levied and is not a tax increase. The effective date of the bill is 7/28/19. Definitions  “Participating city” / “participating county” is a jurisdiction that imposes the sales and use tax under this legislation. To be participating a jurisdiction must, by a simple majority of the enacting legislative authority do both of these things: 1) By 1/28/20 pass a “resolution of intent” to adopt legislation to authorize the maximum capacity of the tax; AND 2) By 7/28/20 pass legislation to authorize the maximum capacity of the tax. If a jurisdiction does not adopt both the “resolution of intent” and “legislation to authorize” by the deadlines, it permanently loses the authority to do so.  “Nonparticipating city” / “nonparticipating county” is a jurisdiction that does not pass the “resolution of intent” and legislation to impose the sales and use tax under this legislation.  “Qualifying Local Tax” (QLT) means one of the following tax sources, if the tax source is instated by no later than 12 months after the effective date of the legislation:  the affordable housing levy authorized under RCW 84.52.105;  the levy authorized under RCW 84.55.050 if used solely for affordable housing;  the sales and use tax for housing and related services authorized under RCW 82.14.530 if the city has imposed the tax at a minimum or least half of the authorized rate; or  the sales tax for chemical dependency and mental health treatment services or therapeutic courts authorized under RCW 82.14.460 imposed by a city. Uses of Funds  Allowable uses of funds:  Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385; or  Funding operations and maintenance costs of new units of affordable or supportive housing.  Counties with a population under 400,000 and cities with a population under 100,000 may also use the funds for providing rental assistance to tenants.  There is no specific provision for funding to administer these funds.  Housing and services provided through this funding may only be provided to persons whose income is at or below 60% of the median income of the county or city.  The Department of Revenue requires 30 days’ notice and that the jurisdiction begins retaining the tax on the 1st day of a month.  Ability of counties and cities to retain the sales tax expires 20 years after the implementation date.  Cities and counties retaining the tax may issue general obligation or revenue bonds and pledge those taxes to bond payments.  Department of Revenue will be issuing some additional information on implementation in the next few months. County and City Shares A total of .0146% of the collected sales tax is the maximum that can be retained. Either by a city or county claiming the whole amount (.0146%), or by the city and county each claiming half (.0073%). A county and city may enter into an interlocal agreement with other local government or public housing authority to pool the tax receipts and pledge those taxes to bonds. For the first year (7/28/19 – 7/27/20) After the first year (7/28/20 - onward) The same as above, except as noted below: Reporting requirements A county or city imposing the tax must report annually to the Department of Commerce on the collection and use of the revenue. Commerce must submit an annual report to the legislature on the use of the funds. Commerce must adopt rules about the reporting requirements by 12/1/19. Funds Available By 12/31/19, or within 30 days of a county or city authorizing the tax, whichever is later, the Department of Revenue (DoR) must calculate the maximum amount of the tax distributions for each county and city authorizing the tax, based on SFY2019 taxable retail sales (note: this amount is fixed and is not adjusted each year). Any tax collected in excess of the maximum calculated amount goes to the State General Fund. Taxes are collected by DoR and remitted to each participating county and city. Note: Kitsap County projection based on 5/18 -4/19 tax data. Department of Revenue is responsible for final calculations for each County and City authorizing the tax based on SFY 2019 taxable retail sales. What-if 0.0146% What-if 0.0073% Bainbridge Island 86,956 43,478 Bremerton 157,010 78,505 Kitsap County 359,906 179,953 Port Orchard 89,039 44,520 Poulsbo 73,273 36,637 Total 766,185 383,092 Participating County Non-Participating County (declares will not partic) Non-Participating City (declares will not partic) Participating City Collects .0146 in unincorporated areas Participating City Collects .0146 in city limits Currently levying a QLT Not Currently levying a QLT County collects .0073 City collects .0146 Participating County collects .0146 in City Non-Participating County (not met criteria to partic) Participating City Participating City, adopted a QLT by 7/27/20, collects .0146 in city Adopted a QLT by 7/27/20 Did not adopt a QLT by 7/27/20 County collects .0073 City collects .0073 City collects .0146 City collects .0073 * Participating City, did NOT adopt a QLT by 7/27/19, collects $0 * This is believed to be an error in the legislation. AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. ____ providing for the issuance and sale of Limited Tax General Obligation Refunding Bonds; and delegating authority to approve final Terms of the Bonds Study Session Date: July 24, 2019 COUNCIL MEETING Date: August 7, 2019 Department: Financial Services Presenter: Michael Riley Phone: (360) 473-5303 SUMMARY: Periodically the City reviews it outstanding Bonds to determine if feasible any debt refinancing would be favorable to the City. During the review process, it was determined the 2010 limited tax general obligation (LTGO) Babs series I and II were positioned for a refunding. The attached ordinance delegates to the Mayor or Director of Financial Services the ability to set the date and rates for the final sale of the bonds. The ordinance set the parameters under which this can occur. By doing this, the City can react to changing market conditions quickly without being tied to a date certain based on Council meeting schedules. ATTACHMENTS: Ordinance No. FISCAL IMPACTS (Include Budgeted Amount) Minimum net present value savings of 4.00% of the Refunded Bonds. STUDY SESSION AGENDA: ☐ Limited Presentation ☒ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. ____ of the City of Bremerton, Washington, providing for the issuance and sale of not to exceed $7M aggregate principal amount of limited tax general obligation refunding bonds; and delegating authority to the Mayor or Director of Financial Services to approve final terms of the bonds. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/18 B3 53396104.2 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ______ AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $7,000,000 aggregate principal amount of limited tax general obligation refunding bonds to provide funds to refund certain outstanding limited tax general obligation bonds of the City and to pay the costs of issuance of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City’s designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. Passed August 7, 2019 This document prepared by: Foster Pepper PLLC 1111 Third Avenue, Suite 3000 Seattle, Washington 98101 (206) 447-4400 -i- 53396104.2 TABLE OF CONTENTS* Page Section 1. Definitions............................................................................................................... 1 Section 2. Findings and Determinations .................................................................................. 5 Section 3. Authorization of Bonds ........................................................................................... 6 Section 4. Description of Bonds; Appointment of Designated Representative ....................... 6 Section 5. Bond Registrar; Registration and Transfer of Bonds .............................................. 7 Section 6. Form and Execution of Bonds ................................................................................ 8 Section 7. Payment of Bonds ................................................................................................... 9 Section 8. Bond Account ......................................................................................................... 9 Section 9. Redemption Provisions and Purchase of Bonds ..................................................... 9 Section 10. Failure To Pay Bonds............................................................................................ 10 Section 11. Pledge of Taxes ..................................................................................................... 10 Section 12. Tax Covenants ...................................................................................................... 11 Section 13. Refunding or Defeasance of the Bonds ................................................................ 12 Section 14. Refunding of the Refunded Bonds ........................................................................ 12 Section 15. Call for Redemption of the Refunded Bonds ........................................................ 14 Section 16. Findings with Respect to Refunding ..................................................................... 14 Section 17. Sale and Delivery of the Bonds ............................................................................ 15 Section 18. Official Statement ................................................................................................. 15 Section 19. Undertaking to Provide Continuing Disclosure .................................................... 15 Section 20. Supplemental and Amendatory Ordinances.......................................................... 18 Section 21. General Authorization and Ratification ................................................................ 18 Section 22. Severability ........................................................................................................... 18 Section 23. Effective Date of Ordinance ................................................................................. 19 *The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and shall not be used to resolve any question of interpretation of this ordinance. - 1 - 53396104.2 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. _______ AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $7,000,000 aggregate principal amount of limited tax general obligation refunding bonds to provide funds to refund certain outstanding limited tax general obligation bonds of the City and to pay the costs of issuance of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City’s designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Definitions. As used in this ordinance, the following capitalized terms shall have the following meanings: (a) “Acquired Obligations” means those United States Treasury Certificates of Indebtedness, Notes, and Bonds--State and Local Government Series and other direct, noncallable obligations of the United States of America purchased to accomplish the refunding of the Refunded Bonds as authorized by this ordinance. (b) “Authorized Denomination” means $5,000 or any integral multiple thereof within a maturity of a Series. (c) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial interest in that Bond. (d) “Bond” means each bond issued pursuant to and for the purposes provided in this ordinance. (e) “Bond Counsel” means the firm of Foster Pepper PLLC, its successor, or any other attorney or firm of attorneys selected by the City with a nationally recognized standing as bond counsel in the field of municipal finance. (f) “Bond Account” means the account or subaccount known as the Limited Tax General Obligation Refunding Bond Account, 2019, of the City created for the payment of the principal of and interest on the Bonds. (g) “Bond Purchase Agreement” means an offer to purchase a Series of the Bonds, setting forth certain terms and conditions of the issuance, sale and delivery of those Bonds, which offer is authorized to be accepted by the Designated Representative on behalf of the City, if consistent with this ordinance. - 2 - 53396104.2 (h) “Bond Register” means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of each Bond. (i) “Bond Registrar” means the Fiscal Agent, or any successor bond registrar selected by the City for any Series of Bonds. (j) “City” means the City of Bremerton, Washington, a municipal corporation duly organized and existing under the laws of the State. (k) “City Council” means the legislative authority of the City, as duly and regularly constituted from time to time. (l) “Code” means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. (m) “DTC” means The Depository Trust Company, New York, New York, or its nominee. (n) “Designated Representative” means the officer of the City appointed in Section 4 of this ordinance to serve as the City’s designated representative in accordance with RCW 39.46.040(2). (o) “Final Terms” means the terms and conditions for the sale of a Series of the Bonds including the amount, date or dates, denominations, interest rate or rates (or mechanism for determining interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms or covenants, including minimum savings for refunding bonds (if the refunding bonds are issued for savings purposes). (p) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated by the State from time to time. (q) “Government Obligations” has the meaning given in RCW 39.53.010, as now in effect or as may hereafter be amended. (r) “Issue Date” means, with respect to a Bond, the date of initial issuance and delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond. (s) “Letter of Representations” means the Blanket Issuer Letter of Representations between the City and DTC, dated November 19, 1997, as it may be amended from time to time, and any successor or substitute letter relating to the operational procedures of the Securities Depository. (t) “MSRB” means the Municipal Securities Rulemaking Board. (u) “Official Statement” means an offering document, disclosure document, private placement memorandum or substantially similar disclosure document provided to purchasers and potential purchasers in connection with the initial offering of a Series of the Bonds in conformance with Rule 15c2-12 or other applicable regulations of the SEC. - 3 - 53396104.2 (v) “Owner” means, without distinction, the Registered Owner and the Beneficial Owner. (w) “Purchaser” means D.A. Davidson & Co. of Seattle, Washington, or other corporation, firm, association, partnership, trust, bank, financial institution or other legal entity or group of entities selected by the Designated Representative to serve as purchaser of any Series of the Bonds. (x) “Rating Agency” means any nationally recognized rating agency then maintaining a rating on the Bonds at the request of the City. (y) “Record Date” means the Bond Registrar’s close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar’s cl ose of business on the date on which the Bond Registrar sends the notice of redemption in accordance with Section 9. (z) “Refunded Bonds” means all or a portion of the Refunding Candidates selected by the Designated Representative to be refunded with proceeds of a Series of the Bonds and included in a Refunding Plan. (aa) “Refunding Candidates” means the 2010 Refunding Candidates and the 2010B Refunding Candidates. (bb) “Refunding Plan” means: (1) the placement of sufficient proceeds of a Series of the Bonds which, with other money of the City, if necessary, will be deposited with the Refunding Trustee or may be used to acquire the Acquired Obligations to be deposited along with cash, if necessary, with the Refunding Trustee; (2) the payment of the principal of and interest on the Refunded Bonds when due up to and including March 1, 2020 for the 2010 Refunded Bonds and up to and including December 1, 2020 for the 2010B Refunded Bonds, or such other date(s) determined by the Designated Representative, and the call, payment, and redemption on such date(s), of all of the then-outstanding Refunded Bonds at a price of par; and (3) may include the payment of the costs of issuing a Series of the Bonds and the costs of carrying out the foregoing elements of the Refunding Plan. (cc) “Refunding Trust Agreement” means a Refunding Trust Agreement between the City and the Refunding Trustee. (dd) “Refunding Trustee” means U.S. Bank National Association, or other trustee or escrow agent or any successor trustee or escrow agent serving as refunding trustee to carry out the Refunding Plan. (ee) “Registered Owner” means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as the City utilizes the book -entry only - 4 - 53396104.2 system for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities Depository. (ff) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. (gg) “SEC” means the United States Securities and Exchange Commission. (hh) “Securities Depository” means DTC, any successor thereto, any substitute securities depository selected by the City that is qualified under applicable laws and regulations to provide the services proposed to be provided by it, or the nominee of any of the foregoing. (ii) “Series of the Bonds” or “Series” means a series of the Bonds issued pursuant to this ordinance. (jj) “State” means the State of Washington. (kk) “Term Bond” means each Bond designated as a Term Bond and subject to mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement. (ll) “2010 Bonds” means the City’s Limited Tax General Obligation Bonds, 2010 (Taxable Build America Bonds – Direct Payment), issued pursuant to the 2010 Bond Ordinance. (mm) “2010 Bond Ordinance” means Ordinance No. 5109 and Resolution No. 3117 authorizing the issuance and sale of the 2010 Bonds. (nn) “2010 Refunding Candidates” means the outstanding 2010 Bonds maturing in the years 2022, 2025, 2030 and 2035, the refundings of which has been provided for by this ordinance. (oo) “2010B Bonds” means the City’s Limited Tax General Obligation Bonds, 2010B (Taxable Build America Bonds – Direct Payment), issued pursuant to the 2010B Bond Ordinance. (pp) “2010B Bond Ordinance” means Ordinance No. 5109 and Resolution No. 3124 authorizing the issuance and sale of the 2010B Bonds. (qq) “2010B Refunding Candidates” means the outstanding 2010B Bonds maturing in the years 2025 and 2030, the refundings of which has been provided for by this ordinance. (rr) “Undertaking” means the undertaking to provide continuing disclosure entered into pursuant to Section 19 of this ordinance. - 5 - 53396104.2 Section 2. Findings and Determinations. The City takes note of the following facts and makes the following findings and determinations: (a) Authority and Description of the Refunding Plan. (1) Pursuant to the 2010 Bond Ordinance, the City heretofore issued its $6,910,000 par value Limited Tax General Obligation Bonds, 2010 (Taxable Build America Bonds – Direct Payment) (the “2010 Bonds”), for the purpose of financing costs of constructing a parking facility and purchasing and renovating a building to be used as a municipal courthouse, and by that ordinance reserved the right to redeem the 2010 Bonds maturing on and after September 1, 2020, prior to their maturity on or after March 1, 2020, at a price of par plus accrued interest to the date fixed for redemption (the “2010 Refunding Candidates”). (2) There are presently $5,015,000 par value of 2010 Refunding Candidates outstanding. (3) Pursuant to the 2010B Bond Ordinance, the City heretofore issued its $2,220,000 par value Limited Tax General Obligation Bonds, 2010B (Taxable Build America Bonds – Direct Payment) (the “2010B Bonds”), for the purpose of financing costs of constructing a parking facility and purchasing and renovating a building to be used as a municipal courthouse, and by that ordinance reserved the right to redeem the 2010B Bonds maturing on and after December 1, 2021, prior to their maturity on or after December 1, 2020, at a price of par plus accrued interest to the date fixed for redemption (the “2010B Refunding Candidates,” and together with the 2010 Refunding Candidates, the “Refunding Candidates”). (4) There are presently $1,375,000 par value of 2010B Refunding Candidates outstanding. (5) After due consideration, it appears to the City Council that all or a portion of the Refunding Candidates may be refunded by a portion of the issuance and sale of the limited tax general obligation refunding bonds authorized herein so that a savings will be effected by the difference between the principal and interest cost over the life of the portion of the Bonds used for the Refunding Plan and the principal and interest cost over the life of the Refunded Bonds but for such refunding, which refunding will be effected by carrying out the Refunding Plan. (b) Debt Capacity. The maximum amount of indebtedness authorized by this ordinance is $7,000,000. Based on the following facts, this amount is to be issued within the amount permitted to be issued by the City for general municipal purposes without a vote: (1) The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for collection in the calendar year 2019 is $3,603,403,693. (2) As of June 1, 2019, the City had limited tax general obligation indebtedness, consisting of bonds, leases and conditional sales contracts outstanding in the principal amount of $21,715,000, which is incurred within the limit of up to 1½% of the value of the taxable property within the City permitted for general municipal purposes without a vote. - 6 - 53396104.2 (3) As of June 1, 2019, the City has unlimited tax general obligation indebtedness for capital purposes only outstanding in the principal amount of $9,435,000 for general municipal purposes. The indebtedness described in this paragraph has been incurred with the approval of the requisite proportion of the City’s qualified voters at an election meeting the minimum turnout requirements, within the limit of up to 2½% of the value of the taxable property within the City for general municipal purposes (when combined with the outstanding limited tax general obligation indebtedness). (c) The Bonds. For the purpose of providing the funds necessary to carry out the Refunding Plan and to pay the costs of issuance and sale of the Bonds, the City Council finds that it is in the best interests of the City and its taxpayers to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as approved by the City’s Designated Representative consistent with this ordinance. Section 3. Authorization of Bonds. The City is authorized to borrow money on the credit of the City and issue negotiable limited tax general obligation refunding bonds evidencing indebtedness in one or more Series in the aggregate principal amount of not to exceed $7,000,000 to provide funds necessary to carry out the Refunding Plan and to pay the costs of issuance and sale of the Bonds. Section 4. Description of Bonds; Appointment of Designated Representative. The City’s Mayor, or the appointed or acting Director of Financial Services in the absence of the Mayor, is appointed as the Designated Representative of the City and is authorized and directed to conduct the sale of the Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of each Series of the Bonds, with such additional terms and covenants as the Designated Representative deems advisable, within the following parameters: (a) The Bonds may be issued in one or more Series, and the aggregate principal amount of the Bonds shall not exceed $7,000,000; (b) One or more rates of interest may be fixed for the Bonds as long as no rate of interest for any maturity of the Bonds exceeds 5.00%; (c) The true interest cost to the City for each Series of Bonds does not exceed 4.00%; (d) The aggregate purchase price for each Series of Bonds shall not be less than 98% and not more than 130% of the aggregate stated principal amount of the Bonds, excluding any original issue discount; (e) The Bonds may be issued subject to optional and mandatory redemption provisions; (f) The Bonds shall be dated as of the date of their delivery, which date and time for the issuance and delivery of the Bonds is not later than June 30, 2020; (g) There is a minimum net present value savings of 4.00% of the Refunded Bonds; and - 7 - 53396104.2 (h) Each Series shall mature no later than December 31, 2035. In addition, a Series of the Bonds may not be issued if it would cause the indebtedness of the City to exceed the City’s legal debt capacity on the Issue Date. The Designated Representative may determine whether it is in the City’s best interest to provide for bond insurance or other credit enhancement; and may accept such additional terms, conditions and covenants as he or she may determine are in the best interests of the City, consistent with this ordinance. In determining the number of series, the series designations, final principal amounts, date of the Bonds, denominations, interest rates, payment dates, redemption provisions, tax status, and maturity dates for the Bonds, the Designated Representative, in consultation with other City officials and staff and advisors, shall take into account those factors that, in his or her judgment, will result in the lowest true interest cost on the Bonds to their maturity, including, but not limited to current financial market conditions and current interest rates for obligations comparable to the Bonds. Section 5. Bond Registrar; Registration and Transfer of Bonds. (a) Registration of Bonds. Each Bond shall be issued only in registered form as to both principal and interest and the ownership of each Bond shall be recorded on the Bond Register. (b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City’s paying agent for the Bonds and to carry out all of the Bond Registrar’s powers and duties under this ordinance. The Bond Registrar shall be responsible for it s representations contained in the Bond Registrar’s Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Owners. (c) Bond Register; Transfer and Exchange. The Bond Register shall contain the name and mailing address of each Registered Owner and the principal amount and number of each Bond held by each Registered Owner. A Bond surrendered to the Bond Registrar may be exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same Series, interest rate and maturity. A Bond may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated to exchange any Bond or transfer registered ownership during the period between the applicable Record Date and the next upcoming interest payment or redemption date. - 8 - 53396104.2 (d) Securities Depository; Book-Entry Only Form. If a Bond is to be issued in book- entry form, DTC shall be appointed as initial Securities Depository and each such Bond initially shall be registered in the name of Cede & Co., as the nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held fully immobilized in book-entry only form by the Securities Depository in accordance with the provisions of the Letter of Representations. Registered ownership of any Bond registered in the name of the Securities Depository may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any person if the Bond is no longer to be held in book-entry only form. Upon the resignation of the Securities Depository, or upon a termination of the services of the Securities Depository by the City, the City may appoint a substitute Securities Depository. If (i) the Securities Depository resigns and the City does not appoint a substitute Securities Depository, or (ii) the City terminates the services of the Securities Depository, the Bonds no longer shall be held in book-entry only form and the registered ownership of each Bond may be transferred to any person as provided in this ordinance. Neither the City nor the Bond Registrar shall have any obligation to participants of any Securities Depository or the persons for whom they act as nominees regarding accuracy of any records maintained by the Securities Depository or its participants. Neither the City nor the Bond Registrar shall be responsible for any notice that is permitted or required to be given to a Registered Owner except such notice as is required to be given by the Bond Registrar to the Securities Depository. Section 6. Form and Execution of Bonds. (a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimi le, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on its Issue Date. (b) Authentication. Only a Bond bearing a Certificate of Authentication in substantially the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: “Certificate of Authentication. This Bond is one of the fully registered City of Bremerton, Washington, Limited Tax General Obligation Refunding Bonds, 2019, described in the Bond Ordinance.” The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. - 9 - 53396104.2 Section 7. Payment of Bonds. Principal of and interest on each Bond shall be payable in lawful money of the United States of America. Principal of and interest on each Bond registered in the name of the Securities Depository is payable in the manner set forth in the Letter of Representations. Interest on each Bond not registered in the name of the Securities Depository is payable by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register on the Record Date. However, the City is not required to make electronic transfers except pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond not registered in the name of the Securities Depository is payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances. Section 8. Bond Account. The Bond Account is created as a special fund of the City for the sole purpose of paying principal of and interest on the Bonds. Bond proceeds in excess of the amounts need to pay the costs of the Refunding Plan and the costs of is suance of the Bonds, if any, shall be deposited into the Bond Account. All amounts allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Account as necessary for the timely payment of amounts due with respect to the Bonds. The principal of and interest on the Bonds shall be paid out of the Bond Account. Until needed for that purpose, the City may invest money in the Bond Account temporarily in any legal investment, and the investment earnings shall be retained in the Bond Account and used for the purposes of that fund. Section 9. Redemption Provisions and Purchase of Bonds. (a) Optional Redemption. The Bonds shall be subject to redemption at the option of the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase Agreement, consistent with the parameters set forth in Section 4. (b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the Bond Purchase Agreement, consistent with the parameters set forth in Section 4 and except as set forth below, shall be called for redemption at a price equal to the stated principal amount to be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the Bond Purchase Agreement. If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed, defeased or purchased (irrespective of its actual redemption or purchase price) shall be credited against one or more scheduled mandatory redemption installments for that Term Bond. The City shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for which notice of redemption has not already been given. (c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of the Securities Depository to be redeemed in accordance with the Letter of Representations, and - 10 - 53396104.2 the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same Series, maturity and interest rate in any Authorized Denomination in the aggregate principal amount to remain outstanding. (d) Notice of Redemption. Notice of redemption of each Bond registered in the name of the Securities Depository shall be given in accordance with the Letter of Representations. Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond Register on the Record Date. The requirements of the preceding sentence shall be satisfied when notice has been mailed as so provided, whether or not it is actually received by an Owner. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and with such additional information as the Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of any Bond. (e) Rescission of Optional Redemption Notice. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded shall be of no effect, and each Bond for which a notice of optional redemption has been rescinded shall remain outstanding. (f) Effect of Redemption. Interest on each Bond called for redemption shall cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond Account or in a trust account established to refund or defease the Bond. (g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when the Bond is properly presented at its maturity or date fixed for redemption, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Account, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of the City and are payable from tax revenues of the City, including local revitalization financing taxes authorized by RCW 82.14.505 and .510, and such other money as is lawfully available and - 11 - 53396104.2 pledged by the City for the payment of principal of and interest on the Bonds. For as long as any of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided by law within the constitutional and statutory limitations provided by law without the assent of the voters, include in its annual property tax levy amounts sufficient together with other money that is lawfully available to pay principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the principal of and interest on the Bonds and such pledge shall be enforceable in mandamus against the City. In addition, all amounts received by the City as a result of imposing the local sales and use tax under chapter 39.104 RCW and RCW 82.14.505 and 82.14.510 for the purpose of financing certain public improvements located within a “revitalization area” are pledged, as necessary, to the payment of the portion of the Bonds that financed improvements within the local revitalization financing area. Section 12. Tax Covenants. (a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bonds. (b) Post-Issuance Compliance. The Finance Director is authorized and directed to review and update the City’s written procedures to facilitate compliance by the City with the covenants in this ordinance and the applicable requirements of the Code that must be satisfied after the Issue Date to prevent interest on the Bonds from being included in gross income for federal tax purposes. (c) Designation of Bonds as “Qualified Tax-Exempt Obligations.” A Series of the Bonds may be designated as “qualified tax-exempt obligations” for the purposes of Section 265(b)(3) of the Code, if the following conditions are met: (1) the Series does not constitute “private activity bonds” within the meaning of Section 141 of the Code; (2) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) that the City and any entity subordinate to the City (including any entity that the City controls, that derives its authority to issue tax-exempt obligations from the City, or that issues tax -exempt obligations on behalf of the City) will issue during the calendar year in which the Series is issued will not exceed $10,000,000; and - 12 - 53396104.2 (3) the amount of tax-exempt obligations, including the Series, designated by the City as “qualified tax-exempt obligations” for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Series is issued does not exceed $10,000,000. Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the “defeased Bonds”); (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the “trust account”), money and/or Government Obligations maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. Unless otherwise specified by the City in a refunding or defeasance plan, notice of refunding or defeasance shall be given, and selection of Bonds for any partial refunding or defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of Bonds. Section 14. Refunding of the Refunded Bonds. (a) Appointment of Refunding Trustee. U.S. Bank National Association is appointed as Refunding Trustee in connection with the Bonds. (b) Use of Bond Proceeds; Acquisition of Acquired Obligations. The proceeds of the sale of the Bonds shall be deposited immediately upon the receipt thereof with the Refunding Trustee and used to discharge the obligations of the City relating to the Refunded Bonds under the 2010 Bond Ordinance and the 2010B Bond Ordinance by providing for the payment of the amounts required to be paid by the Refunding Plan. To the extent practicable, such obligations shall be discharged fully with Bond proceeds by the Refunding Trustee’s simultaneous purchase of the Acquired Obligations, bearing such interest and maturing as to principal and interest in such amounts and at such times so as to provide, together with a beginning cash balance, if necessary, for the payment of the amount required to be paid by the Refunding Plan. The Acquired Obligations, if acquired, will be listed and more particularly described in an exhibit to be attached to the Refunding Trust Agreement between the City and the Refunding Trustee, but are subject to substitution as set forth below. Any Bond proceeds or other money deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be returned to the City at the time of delivery of the Bonds to the initial purchaser thereof and deposite d in the Bond Account to pay interest on the Bonds on the first interest payment date. - 13 - 53396104.2 If payment of the costs of issuance of the Bonds is not included in the Refunding Plan, the Bond proceeds that are not deposited with the Refunding Trustee will be deposited with the City to be used to pay the costs of issuance of the Bonds. Any additional proceeds of the Bonds may be deposited into the Bond Account and used to pay interest on the Bonds on the first interest payment date. (c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired Obligations by the Refunding Trustee, the City reserves the right to substitute other direct, noncallable obligations of the United States of America (“Substitute Obligations”) for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if, (a) in the opinion of the City’s bond counsel, the interest on the Bonds and the Refunded Bonds will remain excluded from gross income for federal income tax purposes under Sectio ns 103, 148, and 149(d) of the Code, and (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally recognized independent certified public accounting firm. After the purchase of the Acquired Obligations, if any, by the Refunding Trustee, the City reserves the right to substitute therefor cash or Substitute Obligations subject to the conditions that such money or securities held by the Refunding Trustee shall be sufficient to carry out the Refunding Plan, that such substitution will not cause the Bonds or the Refunded Bonds to be arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in effect on the date of such substitution and applicable to obligations issued on the issue dates of the Bonds and the Refunded Bonds, as applicable, and that the City obtain, at its expense: (1) a verification by a nationally recognized independent firm acceptable to the Refunding Trustee confirming that the payments of principal of and interest on the substitute securities, if paid when due, and any other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan; and (2) an opinion from a nationally recognized bond counsel to the City, to the effect that the disposition and substitution or purchase of such securities, under the statutes, rules, and regulations then in force and applicable to the Bonds, will not cause the interest on the Bonds or the Refunded Bonds to be included in gross income for federal income tax purposes and that such disposition and substitution or purchase is in compliance with the statutes and regulations applicable to the Bonds. Any surplus money resulting from the sale, transfer, other disposition, or redemption of the Acquired Obligations and the substitutions therefor shall be released from the trust estate and transferred to the City to be used for any lawful City purpose. (d) Administration of Refunding Plan. The Refunding Trustee is authorized and directed to purchase the Acquired Obligations (or substitute obligations), if so directed by the Designated Representative, and to make the payments required to be made by the Refunding Plan from the Acquired Obligations (or substitute obligations) and money deposited with the Refunding Trustee pursuant to this ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of the 2010 Bond Ordinance, the 2010B Bond Ordinance, this ordinance, chapter 39.53 RCW and other applicable statutes of the State of Washington and the Refunding Trust Agreement. All necessary and proper fees, compensation, and expenses of the Refunding Trustee for the Bonds and all other costs incidental to the setting up of the escrow to accomplish the refunding of the - 14 - 53396104.2 Refunded Bonds and costs related to the issuance and delivery of the Bonds, including bond printing, verification fees, Bond Counsel’s fees, and other related expenses, shall be paid out of the proceeds of the Bonds. (e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan provided for by this ordinance, the Designated Representative is authorized and directed to execute and deliver to the Refunding Trustee a Refunding Trust Agreement setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the payment, redemption, and retirement of the Refunded Bonds as provided herein and stating that the provisions for payment of the fees, compensation, and expenses of such Refunding Trustee set forth therein are satisfactory to it. Prior to executing the Refunding Trust Agreement, the Designated Representative of the City is authorized to make such changes therein that do not change the substance and purpose thereof or that assure that the escrow provided therein and the Bonds are in compliance with the requirements of federal law governing the exclusion of interest on the Bonds from gross income for federal income tax purposes. Section 15. Call for Redemption of the Refunded Bonds. The City will call for redemption on such date as determined by the Designated Representative, all of the Refunded Bonds at par plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof. The date on which the Refunded Bonds are herein called for redemption is the first date on which those bonds may be called. The proper City officials are authorized and directed to give or cause to be given such notices as required, at the times and in the manner required by the 2010 Bond Ordinance and the 2010B Bond Ordinance, in order to effect the redemption prior to their maturity of the R efunded Bonds. Section 16. Findings with Respect to Refunding. The City Council authorizes the Designated Representative to issue the Bonds if it will achieve debt service savings to the City and is in the best interest of the City and its taxpayers and in the publ ic interest. In making such finding and determination, the Designated Representative will give consideration to the fixed maturities of the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned income from the investment of the proceeds of the issuance and sale of the Bonds and other money of the City used in the Refunding Plan, if any, pending payment and redemption of the Refunded Bonds. The Designated Representative may also purchase Acquired Obligations to be deposited with the Refunding Trustee, together with the income therefrom, and with any necessary beginning cash balance, which will be sufficient to redeem the Refunded Bonds and will discharge and satisfy the obligations of the City under the 2010 Bond Ordinance and the 2010B Bond Ordinance with respect to the Refunded Bonds, and the pledges, charges, trusts, covenants, and agreements of the City therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be deemed to be outstanding under such ordinance immediately upon the deposit of such money with the Refunding Trustee. - 15 - 53396104.2 Section 17. Sale and Delivery of the Bonds. (a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is authorized to sell each Series of the Bonds by negotiated sale based on the assessment of the Designated Representative of market conditions, in consultation with appropriate City officials and staff, Bond Counsel and other advisors. In determining the method of sale of a Series and accepting the Final Terms, the Designated Representative shall take into account those factors that, in the judgment of the Designated Representative, may be expected to result in the lowest true interest cost to the City. (b) Procedure for Negotiated Sale. The Designated Representative shall select one or more Purchasers with which to negotiate the sale of the Bonds. The Bond Purchase Agreement for each Series of the Bonds shall set forth the Final Terms. The Designated Representative is authorized to execute the Bond Purchase Agreement on behalf of the City, so long as the terms provided therein are consistent with the terms of this ordinance. (c) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the Bond Purchase Agreement, together with the approving legal opinion of Bond Counsel regarding the Bonds. Section 18. Official Statement. (a) Preliminary Official Statement Deemed Final. The Designated Representative shall review and, if acceptable to him or her, approve the preliminary Official Statement prepared in connection with each sale of a Series of the Bonds to the public or through a Purchaser as a placement agent. For the sole purpose of the Purchaser’s compliance with paragraph (b)(1) of Rule 15c2-12, if applicable, the Designated Representative is authorized to deem that preliminary Official Statement final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary Official Statement that has been approved by the Designated Representative and been deemed final, if applicable, in accordance with this subsection. (b) Approval of Final Official Statement. The City approves the preparation of a final Official Statement for each Series of the Bonds to be sold to the public in the form of the preliminary Official Statement that has been approved and deemed final in accordance with subsection (a), with such modifications and amendments as the Designated Representative deems necessary or desirable, and further authorizes the Designated Representative to execute and deliver such final Official Statement to the Purchaser if required under Rule 15c2-12. The City authorizes and approves the distribution by the Purchaser of the final Official Statement so executed and delivered to purchasers and potential purchasers of a Series of the Bonds. Section 19. Undertaking to Provide Continuing Disclosure. To meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a participating underwriter for the Bonds, the City makes the following written undertaking (the “Undertaking”) for the benefit of holders of the Bonds: - 16 - 53396104.2 (a) Undertaking to Provide Annual Financial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (1) Annual financial information and operating data of the type included in the final official statement for the Bonds and described in paragraph (b) (“annual financial information”); (2) Timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (A) principal and interest payment delinquencies; (B) non-payment related defaults, if material; (C) unscheduled draws on debt service reserves reflecting financial difficulties; (D) unscheduled draws on credit enhancements reflecting financial difficulties; (E) substitution of credit or liquidity providers, or their failure to perform; (F) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 – TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (G) modifications to rights of holders of the Bonds, if material; (H) bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (I) defeasances; (J) release, substitution, or sale of property securing repayment of the Bonds, if material; (K) rating changes; (L) bankruptcy, insolvency, receivership or similar event of the City, as such “Bankruptcy Events” are defined in Rule 15c2-12; (M) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (N) appointment of a successor or additional trustee or the change of name of a trustee, if material; (O) incurrence of a financial obligation of the City or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City or obligated person, any of which affect security holders, if material; and (P) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the City or obligated person, any of which reflect financial difficulties . The term “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “financial obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with Rule 15c2-12. (3) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in paragraph (b). (b) Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in paragraph (a): (1) Shall consist of (A) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting - 17 - 53396104.2 principles applicable to local governmental units of the State such as the City, as such principles may be changed from time to time, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available they will be provided; (B) principal amount of general obligation bonds outstanding at the end of the applicable fiscal year; (C) assessed valuation for that fiscal year; (D) regular property tax levy amount and rate for the fiscal year; and (E) local revitalization financing revenues for the fiscal year; (2) Shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City’s fiscal year ending December 31, 2018; and (3) May be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. (c) Amendment of Undertaking. This Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. (d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder of each Bond, and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertaking. The City’s obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City’s obligations under this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice of such termination to the MSRB. (f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the City learns of any failure to comply with this Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with this Undertaking shall constitute an event of default. The sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated person to comply with this Undertaking, including seeking an order of specific performance from an appropriate court. (g) Designation of Official Responsible to Administer Undertaking. The Finance Director or his or her designee is the person designated, in accordance with the Bond Ordinance, - 18 - 53396104.2 to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the following actions: (1) Preparing and filing the annual financial information undertaken to be provided; (2) Determining whether any event specified in paragraph (a) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (3) Determining whether any person other than the City is an “obligated person” within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person required under Rule 15c2-12; (4) Selecting, engaging and compensating designated agents and consultants, including financial advisors and legal counsel, to assist and advise the City in carrying out this Undertaking; and (5) Effecting any necessary amendment of this undertaking. Section 20. Supplemental and Amendatory Ordinances. The City may supplement or amend this ordinance for any one or more of the following purposes without the consent of any Owners of the Bonds: (a) To add covenants and agreements that do not materially adversely affect the interests of Owners, or to surrender any right or power reserved to or conferred upon the City. (b) To cure any ambiguities, or to cure, correct or supplement any defective provision contained in this ordinance in a manner that does not materially adversely affect the interest of the Beneficial Owners of the Bonds. Section 21. General Authorization and Ratification. The Mayor, appointed or acting Director of Financial Services, City Clerk and other appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of each Series of the Bonds to the Purchaser thereof and for the proper application, use and investment of the proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 22. Severability. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or - 19 - 53396104.2 circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. Section 23. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. PASSED by the City Council of the City of Bremerton, Washington this 7th day of August, 2019. Eric Younger, Council President APPROVED this 7th day of August, 2019. Greg Wheeler, Mayor ATTEST: Angela Woods, City Clerk APPROVED AS TO FORM: Roger A. Lubovich, City Attorney PUBLISHED EFFECTIVE DATE ORDINANCE NO. 53396104.2 CERTIFICATION I, the undersigned, City Clerk of the City of Bremerton, Washington (the “City”), hereby certify as follows: 1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on August 7, 2019, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect five days after publication in the City’s official newspaper, which publication date is expected to be August __, 2019. 3. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. Dated: August 7, 2019. CITY OF BREMERTON, WASHINGTON Angela Woods, City Clerk AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Renewal of Agreements with West Publishing Corporation for Westlaw Research Subscriptions COUNCIL MEETING Date: August 7, 2019 Department: City Attorney’s Office Presenter: Roger A. Lubovich Phone: (360) 473-2345 SUMMARY: The City Attorney’s Office uses West Publishing Corporation for its legal research subscriptions. The current contract with West Publishing Corporation expires September 30, 2019, and the City Attorney’s Office wishes to renew the contract for a three year term. The monthly fee for online services is $939.29, with a 2% CPI adjustment on each anniversary of the contract. The monthly fee for print services is $98.97, with a 4% CPI adjustment on each anniversary of the contract. The total three year cost for the contract (online and print) will be approximately $36,858. ATTACHMENTS: Renewal Agreements FISCAL IMPACTS (Include Budgeted Amount): The City Attorney’s Office budget has sufficient funds available in the 2019 budget to fund the monthly fees. The monthly fees for 2020, 2021 and 2022 will be included in the annual City Attorney’s budget. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Agreements with West Publishing Corporation and authorize the City Attorney to finalize and execute three year contract renewals with West Publishing Corporation with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B4 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Ordinance No. _______creating new Chapter 5.14 of the Bremerton Municipal Code entitled “Massage Businesses”; and amending Ordinance No. 5357 “City of Bremerton Rates & Fees” COUNCIL MEETING Date: August 7, 2019 Department: Police Presenter: Jim Burchett Phone: (360) 473-5224 SUMMARY: To create a new chapter, Chapter 5.14 of the Bremerton Municipal Code, relating to Massage Businesses and amend Ordinance No. 5357 relating to Rates and Fees for Massage Businesses. ATTACHMENTS: 1) Ordinance No. to create Chapter 5.14 - Massage Businesses Updated; 2) Exhibit Added FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. _________ creating new Chapter 5.14 of the Bremerton Municipal Code relating to Massage Businesses; and amending Ordinance No. 5357 relating to Rates and Fees for Massage Businesses. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B5 1 Chapter 5.14 – Massage Businesses ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating Chapter 5.14 of the Bremerton Municipal Code entitled “Massage Businesses and amending Ordinance No. 5357 relating to rates and fees.” WHEREAS, the City Council desires to create a new chapter, Chapter 5.14 of the Bremerton Municipal Code, relating to massage businesses and amend Ordinance No. 5357 relating to rates and fees for massage businesses; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A new chapter, Chapter 5.14, entitled "Massage Businesses" is hereby added to the Bremerton Municipal Code to read as follows: Chapter 5.14 MASSAGE BUSINESSES 5.14.010 TITLE AND PURPOSE The City of Bremerton recognizes the health and wellness benefits of massage and reflexology, and that massage and reflexology businesses in the City serve a legitimate and beneficial purpose in the community. The City also recognizes that there are some businesses that hold themselves out as massage or reflexology businesses, but employ unlicensed persons to provide massage or reflexology who fail to follow state health and licensing requirements, and do not have the proper training required to obtain a state license or certification. In addition, these businesses that employ unlicensed or uncertified persons to provide massage and reflexology are frequently used to facilitate the commission of various criminal acts, including but not limited to prostitution. Businesses that permit unlicensed or uncertified persons to perform massage and reflexology or permit the commission of unlawful acts threaten the business and reputation of legitimate and licensed businesses and therapists, and present a threat to the public health, safety, and welfare. This chapter is intended to inhibit the ability of an individual or businesses to engage in the practice of providing unlicensed massage and reflexology, support the legitimate provision of these services by licensed massage therapists and reflexologists, enable consumers to more easily identify licensed massage professionals, provide for consistent oversight of massage professionals, and regulate massage businesses in the best interests of the community. 5.14.020 DEFINITIONS. For the purposes of this chapter, the following terms, words and phrases shall have the following meanings: “BMC” means Bremerton Municipal Code. 2 Chapter 5.14 – Massage Businesses “Chief of Police” means the Chief of Police of the City of Bremerton, or designee. “City” means the City of Bremerton, Washington. “Conviction” means an adjudication or conviction of guilt and occurs at such time as a plea of guilty has been accepted or a verdict of guilty has been filed, notwithstanding the pendency of any future proceeding including but not limited to sentencing or disposition, post- trial or post-fact finding motions, and appeals. “Conviction” also means a bail forfeiture and includes all instances in which a plea of nolo contendere is the basis for the conviction and all proceedings in which the sentence has been deferred or suspended. “Genitals” means genitals, pubic area, anus, or perineum of any person, or the vulva or breasts of female. “Identification Card” means a current (1) Motor vehicle operator’s license issued by any state bearing the individuals photograph and date of birth; (2) Identification card issued by the State of Washington bearing the individuals photograph and date of birth; (3) Passport; or (4) Any other identification card approved by the City. “Independent contractor” means a person or entity contracted to perform work for, or provide services to, another entity as a nonemployee. Independent contractors are subject to and pay self-employment tax consisting of Social Security and Medicare taxes. “Manager” means any person who manages, directs, administers, or is in charge of, the affairs and/or conduct of any portion of any activity involving massage therapists occurring at any place offering massage, whether on a continuing, temporary or one-time basis. “Massage” means the treatment of a human body by another by the external manipulation or pressure of soft tissue. Massage includes rubbing, kneading, touching, stroking, tapping or any other manipulations with or without the aids of superficial heat, cold, water, lubricants, or salts, and including the use of equipment, machinery or appliances. For the purposes of the requirements of this chapter, “massage” and “reflexology” have the same meaning. “Massage business” means the operation of a business providing massage services, and/or reflexology services, whether as a sole proprietor or through an employee or independent contractor and whether such services are primary or secondary to the business. For the purposes of the requirements of this chapter, “massage business” and “reflexology business” have the same meaning, unless otherwise specified. “Massage business employee” means any person who gives massages to, or attends in any other way upon, patrons of a massage business, or who supervises the work of such a person. “Massage therapist” means a person engaged in the practice of massage. For the purposes of the requirements of this chapter, “massage therapist” and “reflexologist” have the same meaning, unless otherwise specified. “Owner” shall mean any of the following persons: (1) The sole proprietor of a sole proprietorship operating a massage establishment. (2) Any general partner of a general or limited partnership that owns a massage establishment. (3) Any person who has a ten (10) percent or greater ownership interest in a corporation that owns a massage establishment. (4) Any person who is a member of a limited liability company (LLC), or a professional limited liability company (PLLC), that owns a massage establishment. 3 Chapter 5.14 – Massage Businesses (5) All owners of any other type of business association that owns a massage establishment. “Reflexologist” means a state certified reflexologist practicing reflexology. “Reflexology” means a health care service that is limited to applying alternating pressure with thumb and finger techniques to reflexive areas of the lower one-third of the extremities, feet, hands, and outer ears based on reflex maps. Reflexology does not include the diagnosis of or treatment for specific diseases, or joint manipulations. For the purposes of the requirements of this chapter, “massage” and “reflexology” have the same meaning. “Sole proprietor” means a massage business where the owner owns one hundred (100) percent of the business, is the only person who provides massage services for compensation for that business pursuant to a valid and active certificate, or license issued in accordance with this chapter, and has no other employees or independent contractors. “Substantial interest” means ownership of ten percent or more of the business, or any other kind of contribution to the business of the same or greater size. 5.14.030 OWNER OR MANAGER – PROOF. (a) For purposes of this chapter, whether a person is an owner or manager of a massage business may be established from evidence such as, but not limited to: (1) The person holds himself or herself out as an owner, director, manager, or some other like title evidencing control over business decisions; (2) The person is responsible for the general business decisions of the business; (3) The person is considered by those who provide massage services as an owner, director, manager, or other person in charge; (4) The person is in control or partial control of when, how, or how much those who provide massage services work or are paid, or whether those who provide massage services are employees or contractors retained to provide services on behalf of the business; (5) The person is listed as a registered agent of the business; (6) The person is listed as a “governing person” by the Washington State Business Licensing Service and/or the Office of the Secretary of State; (7) The person is an applicant or is listed as an owner on a city or state business license or license application; (8) The person receives income from the business that is dependent on revenue generated by another person providing massage services on behalf of or at the business; (9) The person has signed a lease or rental agreement for property at which the business is operated or is responsible for lease or rent payments; (10) The person has signed for a loan on behalf of the massage business; (11) The person is financially responsible for the massage business utilities or services such as water, electricity, garbage, sewer, telephone, Internet, cable television, security, cleaning, maintenance, or accounting; (12) The person pays taxes on behalf of the business; or (13) The person is responsible for ensuring the business is properly supplied with resources necessary to carry out the work of the business or maintain the business. (b) The presence of any of the circumstances described in subsection (a) of this section shall be sufficient to establish that a person is the owner, director, manager, or other person in charge of a massage business. The circumstances described in subsection (a) of this 4 Chapter 5.14 – Massage Businesses section are not exclusive and other evidence may demonstrate a person is an owner or manager, or other person in charge of a massage business. 5.14.040 LICENSING PROVISIONS – APPLICABILITY AND AUTHORITY. (a) General Business and Regulatory License. Unless otherwise specified, the general business license provisions contained in BMC 5.02 entitled “General Business Licenses” and regulatory license provisions contained in BMC 5.03 entitled “General Provisions for Regulatory Licenses”, including those procedures and processes governing the denial or revocation of any license issued under this chapter and any appeals therefrom, shall apply to this chapter, in addition to the provisions of this chapter. Applications for general business and regulatory licenses as required in this chapter shall be filed with the City Tax and Licensing Division. (b) Administration of Chapter. The provisions of this chapter shall be administered and enforced by the Chief of Police and other authorized officials. The Chief shall have the authority to waive and/or modify requirements set forth in this chapter as deemed necessary or appropriate in order to achieve the intended purpose of this chapter. (c) Massage and Reflexology. For the purpose of the requirements of this chapter, “massage” and “reflexology” have the same meaning, and a “reflexologist certification” shall have the same meaning as a “massage therapist’s license”, unless otherwise specified. 5.14.050 GENERAL BUSINESS AND REGULATORY LICENSE REQUIRED. (a) It is unlawful to conduct, operate or maintain a massage, or reflexology business as an owner or manager without first applying for, receiving and possessing the following City licenses: (1) General business license pursuant to BMC 5.02, and (2) Massage business regulatory license pursuant to BMC 5.03 (hereinafter “massage business license”). A massage business license is an endorsement to the general business license. (b) A sole proprietor or an independent contractor as defined in Section 5.14.020 above, working as a licensed therapist or certified reflexologist, is required to receive and possess a City general business license and a City massage business regulatory license. (c) An employee of a massage business, working as a licensed massage therapist or certified reflexologist, is not required to receive and possess a City general business license and a City massage business regulatory license. 5.14.060 MASSAGE LICENSE OR REFLEXOLOGIST CERTIFICATE REQUIRED. (a) It is unlawful for any person to perform a massage or represent himself or herself as a licensed massage therapist or for any person to practice reflexology or represent himself or herself as a certified reflexologist without first applying for and receiving a current, valid Washington State massage therapist’s license or reflexologist certification, as applicable, pursuant to RCW 18.108.030. (b) An unissued license or certificate, or an expired, revoked, or suspended license or certificate, shall not be considered a valid license or certificate. (c) For the purposes of the requirements of this chapter, a “reflexologist certification” shall have the same meaning as a “massage therapist’s license”, unless otherwise specified. 5 Chapter 5.14 – Massage Businesses (d) Violations of this section shall be subject to the criminal penalties set forth in Section 5.14.210(b) below. 5.14.070 EXCEPTIONS. The provisions of this chapter shall not apply to massage or reflexologist services performed in any hospital or at the athletic department of any public or private secondary school or college, or by any person who has been certified or licensed by the state of Washington to practice medicine, surgery, drugless therapy, physical therapy, osteopathy, osteopathy and surgery, chiropractic, podiatry, or nursing. 5.14.080 MASSAGE BUSINESS LICENSE – APPLICATION. (a) All applications for a massage business license shall be submitted on a form supplied by the City, which is in addition to the information required for a general business license under BMC 5.03.040, and shall require the: (1) Names, (2) Addresses, (3) Telephone numbers, (4) Current identification cards as defined in Section 5.14.020 above, and (5) Current passport-size color photographs, of all owners, partners, shareholders, managers, or other persons who have a substantial interest or management responsibilities in connection with the business (“Applicant”) specifying the interest or management responsibility of each; (b) The application shall include the: (1) Names, (2) Therapist’s license(s), (3) Current identification cards as defined in Section 5.14.020 above; and (4) Current passport-size color photographs, of all massage therapists employed or to be deployed or retained by the applicant. (c) The application will include a statement attesting to the following: (1) The applicant will only employ or retain massage therapists licensed by the State of Washington, and failure to comply may result in the suspension or revocation of the massage establishment permit. (2) The applicant authorizes the City to investigate the background of all owners, partners, shareholders, or other persons who have a substantial interest or management responsibilities in connection with the business and to investigate the truth of the information contained in the application. (3) The applicant will be responsible for the conduct of all massage therapists, employees, or independent contractors, or other representatives while such persons are on the premises of the massage business, and that failure to comply with the provisions of this chapter and any federal, state or local law, may result in the suspension or revocation of the massage business license. (4) The applicant certifies under penalty of perjury that all information contained in the application is true and correct. (d) All applicants must consent to be fingerprinted for criminal background checks as follows: (1) At the time of initial application, the applicant shall submit fingerprints to the Bremerton Police Department. The Bremerton Police Department will forward the 6 Chapter 5.14 – Massage Businesses fingerprints to the Washington State Patrol to conduct a state and nationwide criminal background check pursuant to RCW 35.21.920. Applicants shall be assessed a nonrefundable criminal background check fee payable to the Washington State Patrol at the time the background checks are requested and the fingerprints are provided. The applicant shall also be responsible for paying a fee for each fingerprinting. The fees for these services are set forth in Chapter 3.01 BMC. (2) At the time of the applicant’s renewal of a license, the Chief of Police will conduct a local criminal history check and may require, pursuant to RCW 35.21.920, a state and nationwide background check of each applicant at the time of renewal application. The applicant shall be responsible for paying any fees as set forth in Chapter 3.01 BMC. (e) The Chief of Police, Chief of Fire, and Director of Community Development, within the jurisdiction and duties of their particular department, shall ascertain whether or not the premises to be used are suitable, proper and adequate, and comply with applicable laws, ordinances and regulations concerning such premises, and the activities to be conducted thereon. 5.14.090 DENIAL, SUSPENSION OR REVOCATION OF LICENSE. In addition to the grounds for denial or revocation of a general business license established under BMC 5.02.180 and the massage business license established under BMC 5.03.060, the City may deny any new application for, or renewal of, a general business or massage business license, or suspend or revoke a general business or massage business license, if the City determines that within three years prior, the applicant or any partner, corporate officer, shareholder, or other person who has a substantial interest or management responsibilities in connection with the business: (a) Failed to comply with applicable laws, ordinances, and regulations or failed to comply with the standards of conduct or operating requirements of this chapter in connection with a massage business; (b) Employed, contracted with, or allowed persons who, within a period of one year, have been convicted of prostitution, consumer fraud, or related crimes stemming from activities conducted on the premises of a massage business; (c) Had any convictions or bail forfeitures which have a direct connection with operating a massage business, including but not limited to theft, controlled substances, prostitution, promoting or permitting prostitution, sexual offenses, consumer fraud, or obscenity; (d) Had a massage business or license suspended or revoked by the City or by any other jurisdiction; or (e) Received penalties pursuant to RCW 18.108.035. 5.14.100 DENIAL, SUSPENSION AND REVOCATION - PROCEDURE. (a) Any application for the issuance or renewal of a general business license and a massage business license issued under this chapter may be denied, or any license issued under this chapter may be suspended or revoked based on one or more violations of the provisions of this chapter. (b) The Chief of Police shall have the power and authority to deny the issuance of or suspend or revoke any license issued under the provisions of this chapter. The Chief shall notify such licensee in writing by certified mail or personal service of the denial or revocation of his or her license application or license and the grounds therefore. (c) Any applicant or licensee may, within fourteen (14) calendar days from the date that the denial, suspension, or revocation notice was mailed, delivered or served to the applicant 7 Chapter 5.14 – Massage Businesses or licensee, appeal from such denial or revocation by filing a written notice of appeal setting forth the grounds therefore with the Administrative Hearing Examiner pursuant to Chapter 2.13 BMC. A filing fee as set forth in Chapter 3.01 BMC shall be submitted with the appeal, which filing fee is required to process the appeal. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in Chapter 2.13 BMC. After the hearing thereon the Administrative Hearing Examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the denial, suspension or revocation and order issuance or reinstatement of the license, and may impose any terms thereupon. (d) The decision of the Administrative Hearing Examiner shall be final. The applicant or licensee and/or the City may seek review of the decision by the Superior Court of Washington in and for Kitsap County within twenty-one (21) calendar days from the date of the decision. If review is sought as herein prescribed the renewal, suspension or revocation shall be stayed pending final action by the Superior Court. (e) When revoked, the license shall be canceled and immediately surrendered to the Director of Community Development and the massage business shall cease operations, unless otherwise authorized by the Administrative Hearing Examiner or the decision is stayed pending appeal as provided for in this section. Upon revocation of any license as provided in this chapter no portion of the license fee shall be returned to the licensee. (f) Upon denial of a license, the massage business shall cease any operations, unless otherwise authorized by the Administrative Hearing Examiner or the decision is stayed pending appeal as provided for in this section. (g) Upon suspension of a license, the massage business shall cease operations until cured as approved by the Chief of Police, unless otherwise authorized by the Administrative Hearing Examiner or the decision is stayed pending appeal as provided for in this section. (h) Upon denial or revocation, the person whose application was denied or license revoked shall not be granted a license for a business, upon any new application that may be made, for a period of ninety (90) calendar days from date of denial or revocation and further, no license shall be issued until such person cures any defaults that resulted in the denial or revocation. 5.14.110 LICENSE TERM AND EXPIRATION Each massage business license issued or renewed under the provisions of this chapter shall be granted annually for one year terms expiring December 31st of each calendar year, unless suspended, revoked, or closed. Failure to renew shall invalidate the license and all privileges granted to the licensee. 5.14.120 LICENSE FEES. Applicants granted a massage business license under this chapter shall pay the City fees prior to the issuance of their license in accordance with BMC 3.01.010 - Rates & Fees, and the corresponding fee schedule maintained by the City of Bremerton Clerk and posted on the City of Bremerton website. The license application fee will be reduced by one-half of the fee for applications received for businesses which begin operation between July 1st to December 31st of the calendar year for which the license is to be issued and is nonrefundable whether or not the license application is later denied. 8 Chapter 5.14 – Massage Businesses 5.14.130 TRANSFER OF LICENSE AND CHANGE OF LOCATION. No massage business license issued under this chapter shall be transferable from one person or entity to another person or entity. Upon the sale or transfer of an interest in a massage business, a license shall become null and void. A new application shall be made by any person desiring to operate or maintain the establishment. 5.14.140 CHANGE IN MASSAGE PRACTIONERS. The applicant for a massage business license shall have the continuing obligation to notify the City of any changes in massage therapists employed or retained by the applicant within ten (10) days of such change and to provide the information required for any new massage therapist pursuant to Section 5.14.080(b) above. 5.14.150 OWNER AND MANAGER LICENSE REQUIREMENTS – VIOLATION. (a) It is unlawful for any owner or manager of a massage business to permit a person who does not have a valid and current massage therapist’s license to practice massage or represent himself or herself as a massage therapist or to permit a person who does not have a current reflexologist certification to practice reflexology or represent himself or herself as a certified reflexologist. It shall be the responsibility of any owner or manager of a massage business to ensure that each person who practices massage, or represents himself or herself as a massage therapist, or to practice reflexology or represent himself or herself as a certified reflexologist, to confirm the validity of a massage therapist’s license through the Washington Department of Health. (b) Violations of this section shall be subject to the criminal penalties set forth in Section 5.14.210(c) below. 5.14.160 DISPLAY OF LICENSE REQUIRED – VIOLATION. (a) A passport-size photograph of: (1) The licensee of the massage business shall be affixed to the massage business license on display pursuant to this section, and (2) Each licensed massage therapist shall be affixed to his or her Washington State massage therapist’s license on display pursuant to this section. (3) For purposes of this section, a reflexologist certification shall have the same meaning as a massage therapist’s license and be subject to the same requirements herein. (b) A massage therapist or a reflexologist must conspicuously display his or her credentials in his or her principal place of business. If the licensed massage therapist or certified reflexologist does not have a principal place of business or conducts business in any other location, he or she must have a copy of his or her credentials available for inspection to persons receiving massage services or to a law enforcement or code compliance officer upon request while performing services within his or her authorized scope of practice. For purposes of this section, credentials include: (1) An identification card as defined in Section 5.14.020 above; (2) A Washington State massage therapist license; and (2) A general business license with the massage business endorsement, if the owner or manager of a massage business. (c) It is unlawful for any owner or manager of a massage business to fail to: (1) Conspicuously display the valid and current massage business license, 9 Chapter 5.14 – Massage Businesses (2) Conspicuously display the valid and current massage therapist’s license of each person who practices massage or represents himself or herself as a massage therapist at or on behalf of the massage business, or (3) Make available the massage business license or massage therapist’s license for inspection to persons receiving massage services or to a law enforcement or code compliance officer upon request. (d) It is unlawful for any person who practices massage or represents himself or herself as a massage therapist to fail to have his or her valid and current massage therapist’s license at each location in which massage services are provided, or provide his or her valid and current license to the person receiving the massage service or to law enforcement for inspection when requested. (e) It is unlawful for any person to present or conspicuously display an expired, altered, fake, or fraudulently obtained license, certificate, or certification. It shall be unlawful for an owner or manager of a massage business to permit another to present or conspicuously display an expired, altered, fake, or fraudulently obtained license, certificate, or certification. (f) Violations shall be subject to the criminal penalties set forth in Section 5.14.210(d) below. 5.14.170 STANDARDS OF CONDUCT AND OPERATION – VIOLATIONS. Every owner or manager in charge of a massage business shall exercise close supervision over the acts of massage therapists or other persons employed on the premises, including independent contractors. The acts of massage therapists or other employees or independent contractors, when in violation of this chapter may constitute grounds for revocation or suspension of the massage business license. (a) It shall be the responsibility of the owner or manager in charge of a massage business to verify that each person who provides massage services has attained the age of eighteen (18). It is unlawful for any owner or manager to permit a person who has not reached the age of eighteen (18) to provide massage services. Any person who is employed by a massage business must present documentation that he or she has attained the age of eighteen (18) years when an inspection pursuant to this chapter is conducted. Any identification card as defined in Section 5.14.020 above shall be accepted as documentation of age. (b) The owner or manager shall ensure that at least one validly licensed massage therapist must be on the premises all times during the hours a massage business is open for business, and/or during the presence of patrons. (c) The owner or manager shall post in a prominent place on the premises and/or on the business website a list of all services offered with a brief description of what the service entails along with the costs of such service(s). All business transactions with the customers must be conducted in accordance with said posted list. Any services rendered, which are not so listed, may be grounds for revocation or suspension of the massage business license. (d) The owner or manager shall ensure that doors to individual massage rooms or enclosures shall not be fitted with locks or any device intended to prevent the opening of such doors so as to prevent reasonable access by such authorities who announce their authority to enter prior to inspection. Doors of individual massage rooms shall not be locked at any time during a massage therapy session (e) It shall be unlawful for the owner or manager to admit anyone under the age of eighteen (18) years of age and permit them to remain in or about such premises, unless such person is accompanied by or presents the written consent of his or her parent or legal guardian. 10 Chapter 5.14 – Massage Businesses (f) It shall be unlawful for any owner, manager or massage therapist, or any employee or agent to knowingly permit to be or remain in or about such premises any prostitute or to perform or allow to be performed any act, massage or manipulation in which contact is made with another’s genital areas either by hand, body or by any mechanical device or object, whether it is covered or uncovered; clothed or unclothed, in whole or in part. (g) Pursuant to, or unless otherwise authorized by WAC 246-830-550 and 555, adopted and incorporated herein by this reference as currently enacted and hereinafter amended, no massage for compensation shall be provided unless the client’s genitals are at all times fully covered. While engaged in massage for compensation, a massage professional shall not make, or offer to make, physical contact with the genitals of any other persons regardless of whether the contact is over or under the persons’ clothing nor shall the massage professional permit, or offer to permit, the client to make physical contact with the genitals of the massage professional regardless of whether the contact is over or under the massage professional’s clothing. (h) Pursuant to, or unless otherwise authorized by WAC 246-830-560, adopted and incorporated herein by this reference as currently enacted and hereinafter amended, it shall be unlawful for any owner, manager, massage therapist, or any employee to disrobe or be partially disrobed or to be dressed in attire that is transparent, see-through, or substantially exposes the massage therapist’s undergarments, swim attire, or in a manner that exposes the massage therapist’s breasts, buttocks, or genitals. (i) The owner or manager shall have the premises supervised at all times when open for business. (j) All payment for services shall be exchanged in a reception room or other central area, if any, and not within any of the massage rooms. (k) Violations of this section shall be subject to the criminal penalties set forth in Subsections 5.14.210(d) below. 5.14.180 INSPECTIONS. (a) All licensees shall allow any code compliance officer, or representative from the Kitsap Health District or the Bremerton Fire Department entry to the premises upon presentation of proper identification, for purposes of inspecting the premises to determine that the provisions of this chapter are continually being met. All inspections shall be conducted during the hours the massage business is open for business. (b) Pursuant to RCW 18.108.190, adopted and incorporated herein by this reference, as currently enacted and hereinafter amended, law enforcement personnel shall have the authority to inspect the premises at any time including business hours. 5.14.190 INTERFERENCE WITH INSPECTIONS – VIOLATIONS. (a) Any business required to be licensed under this chapter shall not install any device that is designed as an internal warning system and no persons shall use any device for alerting persons in other portions of the building. (b) Except for a sole proprietor who is providing services from their personal residence, or as otherwise approved by the Chief of Police, the owner or manager of the massage business shall not permit exterior entry doors to be locked while open for business, or require a buzzer or bell for entry. 11 Chapter 5.14 – Massage Businesses 5.14.200 PREMISES - HOURS OF OPERATION – VIOLATION. No massage business shall be kept open for business between the hours of ten p.m. (10:00 p.m.) and seven a.m. (7:00 a.m.). Clients shall be permitted in the massage establishment only during the hours of operation. 5.14.210 PENALTIES. (a) Any person who operates, manages or maintains a massage business without first applying for and receiving a City general business license and a City massage business license pursuant to Section 5.14.050 above, shall be subject to fines, penalties, and enforcement pursuant to BMC 5.02.190 or BMC 5.03.140, as applicable. (b) Any person who performs a massage for compensation or represents himself or herself as a massage therapist without a valid Washington state massage therapist’s license or to provide reflexologist services for compensation or represent himself or herself as a reflexologist without a valid Washington state massage reflexologist certificate as required in Section 5.14.060 above, shall be guilty of a gross misdemeanor pursuant to RCW 18.130.190(7)(a), adopted and incorporated herein by this reference, as currently enacted and hereinafter amended. It is the City’s intention that a conviction under this section shall be a predicate offense for subsequent prosecution in accord with RCW 18.130.190(7)(a) and (7)(b). (c) Any owner or manager of a massage business who permits a person, who does not have a valid and current massage therapist’s license, to practice massage or represent himself or herself as a massage therapist, or to permit a person who does not have a valid and current massage reflexologist certificate to provide reflexologist services or represent himself or herself as a reflexologist as required in Subsection 5.14.150 above, shall be guilty of a misdemeanor, and for subsequent violations, a gross misdemeanor, pursuant to RCW 18.108.035, adopted and incorporated herein by this reference, as currently enacted and hereinafter amended. (d) Any person violating any other provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof, be punished by a fine not to exceed $1,000.00 or by confinement in jail for a term not to exceed ninety (90) days, or by both such fine and confinement. 5.14.220 ADDITIONAL ENFORCEMENT. Notwithstanding the existence or use of any other remedy, the City may seek legal or equitable relief to enjoin any acts or practices which constitute or will constitute a violation of any provisions of this chapter. SECTION 2. Rates and Fees Established. Ordinance No. 5357 establishing rates and fees is hereby amended by amending the rates and fees in rate Table L entitled “Police Department” and rate Table O entitled “Tax & License” by establishing and adding new rates and fees for massage businesses as set forth in Exhibit A, attached hereto and incorporated herein by reference. SECTION 3. 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. 12 Chapter 5.14 – Massage Businesses SECTION 4. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 5. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. 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\Police\Massage Businesses\BMC 5.14 Massage Business Ordinance FINAL7 - Changes Accepted.docx EXHIBIT A 1 TABLE L POLICE DEPARTMENT 1. TRAFFIC ACCIDENT REPORTS $10.00 2. FINGERPRINTS – 1st Card $10.00 a) Each Additional Card $10.00 3. CRIMINAL HISTORY CHECK $10.00 4. ALARM COMPLIANCE FEE a) 1st False Alarm in any 1 Quarter $60.00 b) 2nd False Alarm in the same Quarter $80.00 c) 3rd False Alarm in the same Quarter or Subsequent Alarms in a Calendar Quarter $160.00 5. SERVICE FEE FOR ANTI-HARASSMENT ORDER $50.00 6. SERVICE OF ARREST WARRANTS AND SUBPOENAS a) Arrest Warrant $15.00 plus mileage b) Subpoena $6.00 plus mileage c) Preparation of return of service $5.00 Mileage (for each mile actually and necessarily traveled by a member of the Police Department in going to or returning from any place of service, or attempted service) current business mileage rate allowed by the Internal Revenue Service. 7. TAXICABS a) Taxicab Business Certificate $30.00/yr b) Taxicab Driver’s Certificate $30.00/yr c) Vehicle Decal $10.00/veh/yr d) Annual Renewal $30.00 e) Certificate Changes $10.00 f) Finger prints $10.00 g) WSP Background Check (effective 1/1/2019) $51.25 WSP Background Check (effective 7/1/2019) $71.25 (or as otherwise assessed by the Washington State Patrol) 8. MASSAGE BUSINESSES a) WSP Background Check $71.25 (or as otherwise assessed by the Washington State Patrol) b) Finger prints $10.00 c) Criminal History Check $30.00 9. CONCEALED WEAPONS PERMITS (Rates set by State subject to change) a) New Permit (effective 1/1/2019) $49.25 b) Renewal Permit $32.00 c) Late Permit $42.00 d) Replacement $10.00 e) Firearm Dealer License $125.00 EXHIBIT A 2 TABLE O TAX & LICENSE 1. REGULATORY LICENSE FEES a) BMC 5.17 Charitable Solicitation − Non-Profit $25/60 days − Professional Fundraiser $675/60 days b) BMC 5.22 Dance/Public $265/yr or $70/30 days c) BMC 5.96 Erotic Dance Studios $700/yr d) Dancers $100/yr e) BMC 5.16 Mobile Food Vendor $150/veh/yr f) BMC 5.16 Peddlers $75/yr or $25/30days g) BMC 5.36 Special Events $100.00/event h) BMC 5.08 Street/Sidewalk Vendors $100/yr i) Site Relocation $50.00 j) BMC 5.16 Temporary Merchant $400/30 days k) Massage Business Regulatory License – Initial Fee $75.00/yr – Renewal Fee $25.00/yr 2. BUSINESS LICENSE FEE a) BMC 5.02 $75/yr AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Washington State Recreation & Conservation Office (RCO) Funding Board Project Agreement for the Warren Avenue Playfield Renovation Project COUNCIL MEETING Date: August 7, 2019 Department: Parks and Recreation Presenter: Jeff Elevado Phone: (360) 473-5428 SUMMARY: The attached Funding Board Project Agreement will provide $850,000 to assist in the renovation of Warren Avenue Playfield. Improvements include ADA access, field lighting upgrades, parking lot paving, restroom, picnic shelter, playground, backstop and fencing, walking path and landscaping. ATTACHMENTS: 1) Recreation and Conservation Office Funding Board Project Agreement; 2) Warren Avenue Playfield Renovation Plan FISCAL IMPACTS (Include Budgeted Amount): The total project estimate is $1,198,000 comprised of $500,000 RCO Local Parks Grant, $350,000 RCO Youth Athletic Facilities Grant, $200,000 Department of Commerce Allocation, $25,000 Cash Donations, $6,500 Bremerton Parks Foundation Grant and $82,000 Capital Fund Balance and/or REET. The remaining balance of $34,500 will be from in-kind/force account labor in the form of design, project administration and staff labor. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to authorize the Mayor to enter into the Funding Board Project Agreement with the State of Washington Recreation and Conservation Funding Board for the Warren Avenue Playfield Renovation Project; and to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B6 USFS Number: Project Number: Project Sponsor:Project Number: Approval Date:Project Title: PARTIES OF THE AGREEMENTA. This Agreement sets out the terms and conditions by which a grant is made from the of the State of Washington. The grant is administered by the Recreation and Conservation Office (RCO). B.PURPOSE OF AGREEMENT C.DESCRIPTION OF PROJECT The period of performance begins on (project start date) and ends on (project end date). No allowable cost incurred before or after this period is eligible for reimbursement unless specifically provided for by written amendment or addendum to this Agreement, or specifically provided for by applicable RCWs, WACs, and any applicable RCO manuals as of the effective date of this Agreement. The Sponsor must request extensions of the period of performance at least 60 days before the project end date. The Sponsor has obligations beyond this period of performance as described in Section F: LONG-TERM OBLIGATIONS. D. PERIOD OF PERFORMANCE E.STANDARD TERMS AND CONDITIONS INCORPORATED The Standard Terms and Conditions of the Recreation and Conservation Office Agreement are hereby incorporated by reference as part of this Agreement. F.LONG-TERM OBLIGATIONS The total grant award provided for this project shall not exceed $. The RCO shall not pay any amount beyond that approved for grant funding of the project and within the percentage as identified below. The Sponsor shall be responsible for all total project costs that exceed this amount. The minimum matching share provided by the Sponsor shall be as indicated below: G.PROJECT FUNDING Percentage Dollar Amount Source of Funding Project Sponsor Total Project Cost H. FEDERAL FUND INFORMATION All rights and obligations of the parties under this Agreement are further specified in and shall be interpreted in light of the Sponsor’s application and the project summary and eligible scope activities under which the Agreement has been approved as well as documents produced in the course of administering the Agreement, including the eligible scope activities, the milestones report, progress reports, and the final report. Provided, to the extent that information contained in such documents is irreconcilably in conflict with this Agreement, it shall not be used to vary the terms of the Agreement, unless those terms are shown to be subject to an unintended error or omission. This “Agreement” as used here and elsewhere in this document, unless otherwise specifically stated, has the meaning set forth in the definitions of the Standard Terms and Conditions of the Agreement. I.RIGHTS AND OBLIGATIONS INTERPRETED IN LIGHT OF RELATED DOCUMENTS Page 1 of 66RCO Revision Date: USFS Number: Project Number: Except as provided herein, no amendment (including without limitation, deletions) of any of the terms or conditions of this Agreement will be effective unless provided in writing signed by all parties. Extensions of the period of performance and minor scope adjustments consented to in writing (including email) by the Sponsor need only be signed by RCO’s director or designee, unless otherwise provided for in another agreement a Sponsor has with the RCO. This exception does not apply to a federal government Sponsor or a Sponsor that requests and enters into a formal amendment for extensions or minor scope adjustments. It is the responsibility of a Sponsor to ensure that any person who signs an amendment on its behalf is duly authorized to do so, and such signature shall be binding on the Sponsor if the representative/agent signing has been authorized to do so by Applicant Resolution/Authorization provided to the RCO and such Applicant Resolution/Authorization has not been withdrawn by the governing body in a subsequent resolution. Any amendment to this Agreement, unless otherwise expressly stated, shall be deemed to include all current federal, state, and local government laws and rules, and policies applicable and active and published in the applicable RCO manuals or on the RCO website in effect as of the effective date of the amendment, without limitation to the subject matter of the amendment. Provided, any update in law, rule, policy or a manual that is incorporated as a result of an amendment shall apply only prospectively and shall not require that an act previously done in compliance with existing requirements be redone. J.AMENDMENTS TO AGREEMENT This Agreement is governed by, and the sponsor shall comply with, all applicable state and federal laws and regulations, applicable RCO manuals as identified below, and any applicable federal program and accounting rules effective as of the date of this Agreement, and with respect to any amendments to this Agreement, as of the effective date of that amendment. Provided, any update in law, rule, policy or a manual that is incorporated as a result of an amendment shall apply only prospectively and shall not require that an act previously done in compliance with existing requirements be redone. K.COMPLIANCE WITH APPLICABLE STATUTES, RULES, AND POLICIES L. SPECIAL CONDITIONS AGREEMENT CONTACTS The parties will provide all written communications and notices under this Agreement to the mail address or the email address listed below if not both: Sponsor Project Contact Address: Title: Name: Natural Resources Building PO Box 40917 Olympia, Washington 98504-0917 M. RCO Contact Email: These addresses and contacts shall be effective until receipt by one party from the other of a written notice of any change. Decisions relating to the Agreement must be made by the Authorized Representative/Agent, who may or may not be the Project Contact for purposes of notices and communications. N.ENTIRE AGREEMENT This Agreement, with all amendments and attachments, constitutes the entire Agreement of the parties. No other understandings, oral or otherwise, regarding this Agreement shall exist or bind any of the parties. O.EFFECTIVE DATE This Agreement, for project , shall be subject to the written approval of the RCO’s authorized representative and shall not be effective and binding until the date signed by both the Sponsor and the RCO, whichever is later (effective date). Reimbursements for eligible and allowable costs incurred within the period of performance identified in Section D: PERIOD OF PERFORMANCE are allowed only when this Agreement is fully executed and an original is received by RCO. Page 2 of 66RCO Revision Date: USFS Number: Project Number: Title: Name: (printed) Date:By: The Sponsor has read, fully understands, and agrees to be bound by all terms and conditions as set forth in this Agreement and the Standard Terms and Conditions of the Agreement. The signators listed below represent and warrant their authority to bind the parties to this Agreement. Assistant Attorney General Date:By: Pre-approved as to form: Date:By: Page 3 of 66RCO Revision Date: USFS Number: Project Number: Table of Contents Funding Board Project Agreement 1 Standard Terms and Conditions of the Recreation and Conservation Office Agreement 4 CITATIONS, HEADINGS AND DEFINITIONSSECTION 1. 6 PERFORMANCE BY THE SPONSORSECTION 2. 10 ASSIGNMENTSECTION 3. 10 RESPONSIBILITY FOR PROJECTSECTION 4. 10 INDEMNIFICATIONSECTION 5. 10 INDEPENDENT CAPACITY OF THE SPONSORSECTION 6. 11 CONFLICT OF INTERESTSECTION 7. 11 COMPLIANCE WITH APPLICABLE LAWSECTION 8. 11 RECORDSSECTION 9. 13 PROJECT FUNDINGSECTION 10. 13 PROJECT REIMBURSEMENTSSECTION 11. 14 ADVANCE PAYMENTSSECTION 12. 16 RECOVERY OF PAYMENTSSECTION 13. 16 COVENANT AGAINST CONTINGENT FEESSECTION 14. 16 INCOME (AND FEES) AND USE OF INCOMESECTION 15. 16 PROCUREMENT REQUIREMENTSSECTION 16. 17 TREATMENT OF EQUIPMENT AND ASSETSSECTION 17. 18 RIGHT OF INSPECTIONSECTION 18. 19 STEWARDSHIP AND MONITORINGSECTION 19. 19 PREFERENCES FOR RESIDENTSSECTION 20. 19 ACKNOWLEDGMENT AND SIGNSSECTION 21. 19 PROVISIONS FOR BOATING PROJECT GRANTSSECTION 22. 20 PROVISIONS APPLYING TO DEVELOPMENT, MAINTENANCE, RENOVATION, AND RESTORATION PROJECTS SECTION 23. 20 PROVISIONS APPLYING TO ACQUISITION PROJECTSSECTION 24. 21 LONG-TERM OBLIGATIONS OF THE PROJECTS AND SPONSORSSECTION 25. 22 CONSTRUCTION, OPERATION, USE AND MAINTENANCE OF ASSISTED PROJECTS SECTION 26. 23 RECORDED NOTICE OF GRANTSECTION 27. 24 PROVISIONS RELATED TO CORPORATE (INCLUDING NONPROFIT) SPONSORS SECTION 28. 24 Page 4 of 66RCO Revision Date: USFS Number: Project Number: PROVISIONS FOR FEDERAL SUBAWARDS ONLYSECTION 29. 24 PROVISIONS FOR BOATING INFRASTRUCTURE GRANTSSECTION 30. 27 PROVISIONS FOR FIREARMS AND ARCHERY RANGE RECREATION PROJECTS ONLY SECTION 31. 27 PROVISIONS FOR LAND AND WATER CONSERVATION FUND PROJECTS ONLY SECTION 32. 27 PROVISIONS FOR FARM AND FOREST ACCOUNT PROJECTS (FARMLAND AND FORESTLAND PRESERVATION PROJECTS ONLY) SECTION 33. 28 PROVISIONS FOR SALMON RECOVERY FUNDING BOARD PROJECTS ONLYSECTION 34. 28 PROVISIONS FOR PUGET SOUND ACQUISITION AND RESTORATION PROJECTS ONLY SECTION 35. 28 ORDER OF PRECEDENCESECTION 36. 32 LIMITATION OF AUTHORITYSECTION 37. 33 WAIVER OF DEFAULTSECTION 38. 33 APPLICATION REPRESENTATIONS – MISREPRESENTATIONS OR INACCURACY OR BREACH SECTION 39. 33 SPECIFIC PERFORMANCESECTION 40. 33 TERMINATION AND SUSPENSIONSECTION 41. 33 DISPUTE HEARINGSECTION 42. 35 ATTORNEYS’ FEESSECTION 43. 35 GOVERNING LAW/VENUESECTION 44. 35 PROVISIONS APPLICABLE ONLY IF FEDERALLY RECOGNIZED INDIAN TRIBE IS THE SPONSOR SECTION 45. 36 SEVERABILITYSECTION 46. 36 Page 5 of 66RCO Revision Date: USFS Number: Project Number: Project Number:Project Sponsor:18-1383DCity of Bremerton Standard Terms and Conditions of the Project Agreement Approval Date:Warren Ave. Playfield Lighting & ADA ImprovementsProject Title: CITATIONS, HEADINGS AND DEFINITIONSSECTION 1. A.Any citations referencing specific documents refer to the current version on the effective date of this Agreement or the effective date of any amendment thereto . B.Headings used in this Agreement are for reference purposes only and shall not be considered a substantive part of this Agreement . C.Definitions. As used throughout this Agreement , the following terms shall have the meaning set forth below: acquisition project – A project that purchases or receives a donation of fee or less than fee interests in real property. These interests include, but are not limited to, conservation easements, access/trail easements, covenants, water rights, leases, and mineral rights. Agreement or project agreement – The document entitled “Funding Board Project Agreement” accepted by all parties to the present transaction, including without limitation these Standard Terms and Conditions of the Project Agreement , all attachments, addendums, and amendments, and any intergovernmental agreements or other documents that are incorporated into the Funding Board Project Agreement subject to any limitations on their effect . applicant – Any party that meets the qualifying standards , including deadlines, for submission of an application soliciting a grant of funds from the funding board. application – The documents and other materials that an applicant submits to the RCO to support the applicant’s request for grant funds ; this includes materials required for the “Application” in the RCO’s automated project information system , and other documents as noted on the application checklist including but not limited to legal opinions, maps, plans, evaluation presentations and scripts. Authorized Representative/Agent – A Sponsor’s agent (employee, political appointee, elected person, etc.) authorized to be the signatory of this Agreement and any amendments requiring a Sponsor signature. This person has the signature authority to bind the Sponsor to this Agreement , grant, and project. Boating Infrastructure Grant (BIG) – A program administered through the United States Fish and Wildlife Service. C.F.R. – Code of Federal Regulations contractor – An entity that receives a contract from a Sponsor related to performance of work or another obligation under this Agreement . Page 6 of 66RCO Revision Date: USFS Number: Project Number: conversion – A conversion occurs 1) when facilities acquired, developed, renovated or restored within the project area are changed to a use other than that for which funds were approved, without obtaining prior written formal RCO or board approval, 2) when property interests are conveyed to a third party not otherwise eligible to receive grants in the program from which funding was approved without obtaining prior written formal RCO or board approval, or 3) when obligations to operate and maintain the funded property are not complied with after reasonable opportunity to cure. development project – A project that results in the construction of , or work resulting in, new elements, including but not limited to structures, facilities, and/or materials to enhance outdoor recreation resources. director – The chief executive officer of the Recreation and Conservation Office or that person’s designee. education project – A project that provides information , education, and outreach programs for the benefit of outdoor recreationists. education and enforcement project – A project that provides information , education, and outreach programs; encourages responsible recreational behavior, and may provide law enforcement for the benefit of outdoor recreationists. effective date – The date when the signatures of all parties to this agreement are present in the agreement. enhancement project – 1) A project that brings a site back to its historic function as part of a natural ecosystem or that improves the ecological functionality of a site, or 2) a project that (i) supports hatchery reform to improve hatchery effectiveness to minimize impacts to wild fish populations , (ii) ensures compatibility between hatchery production and salmon recovery programs, or (iii) supports sustainable fisheries (WAC 420.04.010). equipment – Tangible personal property (including information technology systems) having a useful service life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the Sponsor or $5,000 (2 C.F.R. § 200.33 (2013)). funding board or board – The board that authorized the funds in this Agreement , either the Recreation and Conservation Funding Board (RCFB) created under RCW 79A.25.110, or the Salmon Recovery Funding Board (SRFB) created under RCW 77.85.110. grant program – The source of the grant funds received . May be an account in the state treasury, or a grant category within a larger grant program, or a federal source. indirect cost – Costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved (2 C.F.R. § 200.56 (2013)). long-term compliance period – The period of time after the project end date or end of the period of performance (depending on the project types and grant program). During this period, the Sponsor has continuing obligations under the Agreement . This period may have a nonspecific end date (in perpetuity) or an expressly specified number of years. long-term obligations – Sponsor’s obligations after the project end date , as specified in the Agreement and applicable regulations and policies. landowner agreement – An agreement that is required between a Sponsor and landowner for projects located on land not owned, or otherwise controlled, by the Sponsor. Page 7 of 66RCO Revision Date: USFS Number: Project Number: maintenance – A project that maintains existing areas and facilities through repairs and upkeep for the benefit of outdoor recreation or salmon recovery. maintenance and operation – A project that maintains and operates existing areas and facilities through repairs, upkeep, and routine services for the benefit of outdoor recreationists. match or matching share – The portion of the total project cost provided by the Sponsor . milestone – An important event with a defined date to track an activity related to implementation of a funded project and monitor significant stages of project accomplishment. monitoring project – Means a project that tracks the effectiveness of salmon recovery restoration actions, or provides data on salmon populations or their habitat conditions. monitoring and research project – Means a project that tracks the effectiveness of salmon recovery restoration actions, or provides data on salmon populations or their habitat conditions. Office – Means the Recreation and Conservation Office or RCO . notice of grant – As required by RCO or another authority , a document that has been legally recorded in the county or counties where the project property is located that describes the grant funded project located on the property, the funding sources, and agencies responsible for awarding the grant. pass-through entity – A non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program (2 C. F. R. § 200.74 (2013)). If this Agreement is a federal subaward , RCO is the pass-through entity. period of performance – The period beginning on the project start date and ending on the project end date. planning (RCFB projects only) – A project that results in one or more of the following : a study, a plan, construction plans and specifications, and permits to increase the availability of outdoor recreational resources. planning (SRFB projects only) – A project that results in a study , assessment, project design, or inventory. pre-agreement cost – A project cost incurred before the period of performance . primary Sponsor – The Sponsor who is not a secondary Sponsor and who is specifically identified in the Agreement as the entity to which RCO grants funds to and authorizes and requires to administer the grant. This administration includes but is not limited to acting as the fiscal agent for the grant (e.g. requesting and accepting reimbursements, submitting reports). Primary Sponsor includes its officers , employees, agents and successors. project – An undertaking that is, or may be, funded in whole or in part with funds administered by RCO on behalf of the funding board. project area, RCFB – A geographic area that delineates a grant assisted site which is subject to project agreement requirements (WAC 286.04.010). Page 8 of 66RCO Revision Date: USFS Number: Project Number: project area, SRFB – The area consistent with the geographic limits of the scope of work of the project and subject to project agreement requirements. For restoration projects, the project area must include the physical limits of the project's final site plans or final design plans. For acquisition projects, the project area must include the area described by the legal description of the properties acquired for or committed to the project (WAC 420.04.010). project cost – The total allowable costs incurred under this Agreement and all required match share and voluntary committed matching share, including third-party contributions (2 C.F.R. § 200.83 (2013)). project end date – The specific date identified in the Agreement on which the period of performance ends, as may be changed by amendment. This date is not the end date for any long-term obligations. project start date – The specific date identified in the Agreement on which the period of performance starts. research project – Means a project that studies salmon and the effectiveness of recovery restoration efforts on the population or habitat condition . RCO – Recreation and Conservation Office – The state office that provides administrative support to the Recreation and Conservation Funding Board and Salmon Recovery Funding Board. RCO includes the director and staff, created by RCW 79A.25.110 and 79A.25.150 and charged with administering this Agreement by RCW 77.85.110 and 79A.25.240. reimbursement – RCO’s payment of funds from eligible and allowable costs that have already been paid by the Sponsor per the terms of the Agreement . renovation project – A project intended to improve an existing site or structure in order to increase its useful service life beyond current expectations or functions. This does not include maintenance activities to maintain the facility for its originally expected useful service life. restoration project – A project that brings a site back to its historic function as part of a natural ecosystem or improving the ecological functionality of a site. restoration and enhancement project – A project that brings a site back to its historic function as part of a natural ecosystem or that improves the ecological functionality of a site or a larger ecosystem which improvement may include benefiting fish stocks. RCFB – Recreation and Conservation Funding Board RCW – Revised Code of Washington Recreational Trails Program (RTP) – A Federal Highways Administration grant program . secondary Sponsor – One of two or more Sponsors who is not a primary Sponsor. Only the primary Sponsor may be the fiscal agent for the project. Sponsor – A Sponsor is an organization that is listed in and has signed this Agreement . Sponsor Authorized Representative/Agent – A Sponsor’s agent (employee, political appointee, elected person, etc.) authorized to be the signatory of this Agreement and any amendments requiring a Sponsor signature. This person has the signature authority to bind the Sponsor to this Agreement , grant, and project. SRFB – Salmon Recovery Funding Board Page 9 of 66RCO Revision Date: USFS Number: Project Number: subaward – Funds allocated to the RCO from another organization, for which RCO makes available to or assigns to another organization via this Agreement . Also, a subaward may be an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of any award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal or other program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract. Also see 2 C.F.R. § 200.92 (2013). For federal subawards, a subaward is for the purpose of carrying out a portion of a Federal award and creates a federal assistance relationship with the subrecipient (2 C.F.R. § 200.330 (2013)). If this Agreement is a federal subaward , the subaward amount is the grant program amount in Section G: Project Funding. subrecipient – Subrecipient means an entity that receives a subaward. For non-federal entities receiving federal funds, a subrecipient is an entity that receives a subaward from a pass-through entity to carry out part of a federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency (2 C.F.R. § 200.93 (2013)). If this Agreement is a federal subaward , the Sponsor is the subrecipient. useful service life – Period during which an asset or property is expected to be useable for the purpose it was acquired, developed, renovated, and/or restored per this Agreement . WAC – Washington Administrative Code . PERFORMANCE BY THE SPONSORSECTION 2. The Sponsor shall undertake the project as described in this Agreement , and in accordance with the Sponsor's proposed goals and objectives described in the application or documents submitted with the application, all as finally approved by the funding board. All submitted documents are incorporated by this reference as if fully set forth herein. Timely completion of the project and submission of required documents , including progress and final reports, is important. Failure to meet critical milestones or complete the project, as set out in this Agreement , is a material breach of the Agreement . ASSIGNMENTSECTION 3. Neither this Agreement, nor any claim arising under this Agreement , shall be transferred or assigned by the Sponsor without prior written consent of the RCO. RESPONSIBILITY FOR PROJECTSECTION 4. While the funding board undertakes to assist the Sponsor with the project by providing a grant pursuant to this Agreement, the project itself remains the sole responsibility of the Sponsor. The funding board undertakes no responsibilities to the Sponsor, or to any third party, other than as is expressly set out in this Agreement . The responsibility for the implementation of the project is solely that of the Sponsor, as is the responsibility for any claim or suit of any nature by any third party related in any way to the project. When a project is Sponsored by more than one entity, any and all Sponsors are equally responsible for the project and all post-completion stewardship responsibilities and long-term obligations unless otherwise stated in this Agreement . The RCO has no responsibility for reviewing, approving, overseeing or supervising design or construction of the project and leaves such review, approval, oversight and supervision exclusively to the Sponsor and others with expertise or authority. In this respect, the RCO will act only to confirm at a general, lay, and nontechnical level, solely for the purpose of compliance and payment and not for safety or suitability, that the project has apparently been completed as per the Agreement . Page 10 of 66RCO Revision Date: USFS Number: Project Number: INDEMNIFICATIONSECTION 5. The Sponsor shall defend, indemnify, and hold the State and its officers and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part from the actual or alleged acts, errors, omissions or negligence in connection with this Agreement (including without limitation all work or activities thereunder), or the breach of any obligation under this Agreement by the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors, or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. Provided that nothing herein shall require a Sponsor to defend or indemnify the State against and hold harmless the State from claims, demands or suits based solely upon the negligence of the State, its employees and/or agents for whom the State is vicariously liable. Provided further that if the claims or suits are caused by or result from the concurrent negligence of (a) the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor is legally liable, and (b) the State its employees and agents for whom it is vicariously liable, the indemnity obligation shall be valid and enforceable only to the extent of the Sponsor’s negligence or the negligence of the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. This provision shall be included in any agreement between Sponsor and any contractors, subcontractor and vendor, of any tier. The Sponsor shall also defend, indemnify, and hold the State and its officers and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part from the alleged patent or copyright infringement or other allegedly improper appropriation or use of trade secrets, patents, proprietary information, know-how, copyright rights or inventions by the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable, in performance of the work under this Agreement or arising out of any use in connection with the Agreement of methods, processes, designs, information or other items furnished or communicated to the State, its agents, officers and employees pursuant to the Agreement . Provided, this indemnity shall not apply to any alleged patent or copyright infringement or other allegedly improper appropriation or use of trade secrets, patents, proprietary information, know-how, copyright rights or inventions resulting from the State’s , its agents’, officers’ and employees’ failure to comply with specific written instructions regarding use provided to the State, its agents, officers and employees by the Sponsor , its agents, employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. As part of its obligations provided above, the Sponsor specifically assumes potential liability for actions brought by the Sponsor’s own employees or its agents against the State and , solely for the purpose of this indemnification and defense, the Sponsor specifically waives any immunity under the state industrial insurance law, RCW Title 51. The funding board and RCO are included within the term State, as are all other agencies, departments, boards, councils, committees, divisions, bureaus, offices, societies, or other entities of state government. INDEPENDENT CAPACITY OF THE SPONSORSECTION 6. The Sponsor and its employees or agents performing under this Agreement are not officers , employees or agents of the funding board or RCO. The Sponsor will not hold itself out as nor claim to be an officer , employee or agent of RCO, a funding board or of the state of Washington , nor will the Sponsor make any claim of right, privilege or benefit which would accrue to an employee under RCW 41.06 or Section 30B. The Sponsor is responsible for withholding and/or paying employment taxes, insurance, or deductions of any kind required by federal, state, and/or local laws. Page 11 of 66RCO Revision Date: USFS Number: Project Number: CONFLICT OF INTERESTSECTION 7. Notwithstanding any determination by the Executive Ethics Board or other tribunal, RCO may, in its sole discretion, by written notice to the Sponsor terminate this Agreement if it is found after due notice and examination by RCO that there is a violation of the Ethics in Public Service Act , RCW 42.52; or any similar statute involving the Sponsor in the procurement of, or performance under, this Agreement. In the event this Agreement is terminated as provided herein , RCO shall be entitled to pursue the same remedies against the Sponsor as it could pursue in the event of a breach of the Agreement by the Sponsor . The rights and remedies of RCO provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or this Agreement . COMPLIANCE WITH APPLICABLE LAWSECTION 8. In implementing the Agreement, the Sponsor shall comply with all applicable federal, state, and local laws (including without limitation all applicable ordinances, codes, rules, and regulations). Such compliance includes, without any limitation as to other applicable laws, the following laws: A.Nondiscrimination Laws. The Sponsor shall comply with all applicable federal, state, and local nondiscrimination laws and/or policies, including but not limited to: the Americans with Disabilities Act ; Civil Rights Act; and the Age Discrimination Act . In the event of the Sponsor’s noncompliance or refusal to comply with any nondiscrimination law or policy, the Agreement may be rescinded , cancelled, or terminated in whole or in part, and the Sponsor may be declared ineligible for further grant awards from the funding board. The Sponsor is responsible for any and all costs or liability arising from the Sponsor’s failure to so comply with applicable law . B.Secular Use of Funds. No funds awarded under this grant may be used to pay for any religious activities, worship, or instruction, or for lands and facilities for religious activities, worship, or instruction. Religious activities, worship, or instruction may be a minor use of the grant supported recreation and conservation land or facility. C.Wages and Job Safety. The Sponsor agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington or other jurisdiction which affect wages and job safety. The Sponsor agrees when state prevailing wage laws (RCW 39.12) are applicable, to comply with such laws, to pay the prevailing rate of wage to all workers, laborers, or mechanics employed in the performance of any part of this contract, and to file a statement of intent to pay prevailing wage with the Washington State Department of Labor and Industries as required by RCW 39.12.040. The Sponsor also agrees to comply with the provisions of the rules and regulations of the Washington State Department of Labor and Industries . 1.Exception, Service Organizations of Trail and Environmental Projects (RCW 79A.35.130). If allowed by state and federal law and rules, participants in conservation corps programs offered by a nonprofit organization affiliated with a national service organization established under the authority of the national and community service trust act of 1993, P.L. 103-82, are exempt from provisions related to rates of compensation while performing environmental and trail maintenance work provided: (1) The nonprofit organization must be registered as a nonprofit corporation pursuant to RCW 24.03; (2) The nonprofit organization's management and administrative headquarters must be located in Washington ; (3) Participants in the program must spend at least fifteen percent of their time in the program on education and training activities; and (4) Participants in the program must receive a stipend or living allowance as authorized by federal or state law. Participants are exempt from provisions related to rates of compensation only for environmental and trail maintenance work conducted pursuant to the conservation corps program. Page 12 of 66RCO Revision Date: USFS Number: Project Number: D.Archaeological and Cultural Resources. RCO facilitates the review of applicable projects for potential impacts to archaeological sites and state cultural resources. The Sponsor must assist RCO in compliance with Governor’s Executive Order 05-05 or the National Historic Preservation Act before and after initiating ground-disturbing activity or construction, repair, installation, rehabilitation, renovation, or maintenance work on lands, natural resources, or structures. The funding board requires documented compliance with Executive Order 05-05 or Section 106 of the National Historic Preservation Act, whichever is applicable to the project. If a federal agency declines to consult, the Sponsor shall comply with the requirements of Executive Order 05-05. In the event that archaeological or historic materials are discovered during project activities, work in the location of discovery and immediate vicinity must stop instantly, the area must be secured, and notification must be provided to the following: concerned Tribes’ cultural staff and cultural committees , RCO, and the State Department of Archaeology and Historic Preservation . If human remains are discovered during project activity, work in the location of discovery and immediate vicinity must stop instantly, the area must be secured, and notification provided to the concerned Tribe’s cultural staff and cultural committee, RCO, State Department of Archaeology , the coroner and local law enforcement in the most expeditious manner possible according to RCW 68.50. E.Restrictions on Grant Use. No part of any funds provided under this grant shall be used, other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, or for the preparation, distribution, or use of any kit, pamphlet, booklet, publication, radio, television, or video presentation designed to support or defeat legislation pending before the U.S. Congress or any state legislature. No part of any funds provided under this grant shall be used to pay the salary or expenses of any Sponsor, or agent acting for such Sponsor, related to any activity designed to influence legislation or appropriations pending before the U.S. Congress or any state legislature. F.Debarment and Certification. By signing the Agreement with RCO, the Sponsor certifies that neither it nor its principals nor any other lower tier participant are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by Washington State Labor and Industries . Further, the Sponsor agrees not to enter into any arrangements or contracts related to this Agreement with any party that is on Washington State Department of Labor and Industries’ “Debarred Contractor List .” RECORDSSECTION 9. A.Digital Records. If requested by RCO, the Sponsor must provide a digital file(s) of the project property and funded project site in a format specified by the RCO. B.Maintenance. The Sponsor shall maintain books, records, documents, data and other evidence relating to this Agreement and performance of the services described herein , including but not limited to accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Agreement . Sponsor shall retain such records for a period of six years from the date RCO deems the project complete, as defined in Section 11: PROJECT REIMBURSEMENTS. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. In order to satisfy 15 CFR 24.42(b) & (c) For projects that contain Pacific Coast Salmon Recovery Funds or are used as match to Pacific Coast Salmon Recovery Funds the sponsor shall retain records for a period of nine years from the date RCO deems the project complete as defined in Section 11: PROJECT REIMBURSEMENTS. Page 13 of 66RCO Revision Date: USFS Number: Project Number: C.Access to Records and Data. At no additional cost, the records relating to the Agreement , including materials generated under the Agreement , shall be subject at all reasonable times to inspection, review or audit by RCO, personnel duly authorized by RCO, the Office of the State Auditor , and federal and state officials so authorized by law , regulation or agreement. This includes access to all information that supports the costs submitted for payment under the grant and all findings, conclusions, and recommendations of the Sponsor’s reports , including computer models and methodology for those models. D.Public Records. Sponsor acknowledges that the funding board is subject to RCW 42.56 and that this Agreement and any records Sponsor submits or has submitted to the State shall be a public record as defined in RCW 42.56. RCO administers public records requests per WAC 286-06 and 420-04. Additionally, in compliance with RCW 77.85.130(8), Sponsor agrees to disclose any information in regards to expenditure of any funding received from the SRFB. By submitting any record to the State, Sponsor understands that the State may be requested to disclose or copy that record under the state public records law, currently codified at RCW 42.56. The Sponsor warrants that it possesses such legal rights as are necessary to permit the State to disclose and copy such document to respond to a request under state public records laws. The Sponsor hereby agrees to release the State from any claims arising out of allowing such review or copying pursuant to a public records act request, and to indemnify against any claims arising from allowing such review or copying and pay the reasonable cost of state’s defense of such claims . PROJECT FUNDINGSECTION 10. A.Authority. This Agreement is funded through a grant award from the recreation and conservation funding board per WAC 286 and/or the salmon recovery funding board per WAC 420. The director of RCO enters into this Agreement per delegated authority in RCW 79A.25.020 and 77.85.120. B.Additional Amounts. The funding board shall not be obligated to pay any amount beyond the dollar amount as identified in this Agreement , unless an additional amount has been approved in advance by the funding board or director and incorporated by written amendment into this Agreement . C.Before the Agreement. No expenditure made, or obligation incurred, by the Sponsor before the project start date shall be eligible for grant funds, in whole or in part, unless specifically provided for by funding board policy, such as a waiver of retroactivity or program specific eligible pre-Agreement costs. For reimbursements of such costs, this Agreement must be fully executed and an original received by RCO. The dollar amounts identified in this Agreement may be reduced as necessary to exclude any such expenditure from reimbursement. D.Requirements for Federal Subawards. Pre-Agreement costs before the federal award date in Section H: FEDERAL FUND INFORMATION are ineligible unless approved by the federal award agency (2 C.F.R § 200.458 (2013)). E.After the Period of Performance. No expenditure made, or obligation incurred, following the period of performance shall be eligible, in whole or in part, for grant funds hereunder. In addition to any remedy the funding board may have under this Agreement , the grant amounts identified in this Agreement shall be reduced to exclude any such expenditure from participation. PROJECT REIMBURSEMENTSSECTION 11. Page 14 of 66RCO Revision Date: USFS Number: Project Number: A.Reimbursement Basis. This Agreement is administered on a reimbursement basis per WAC 286-13 and/or 420-12. Only the primary Sponsor may request reimbursement for eligible and allowable costs incurred during the period of performance. The primary Sponsor may only request reimbursement after (1) this Agreement has been fully executed and (2) the Sponsor has remitted payment to its vendors. RCO will authorize disbursement of project funds only on a reimbursable basis at the percentage as defined in Section G: PROJECT FUNDING. Reimbursement shall not be approved for any expenditure not incurred by the Sponsor or for a donation used as part of its matching share. RCO does not reimburse for donations. All reimbursement requests must include proper documentation of expenditures as required by RCO. B.Reimbursement Request Frequency. The primary Sponsor is required to submit a reimbursement request to RCO, at a minimum for each project at least once a year for reimbursable activities occurring between July 1 and June 30 or as identified in the milestones. Sponsors must refer to the most recently published/adopted RCO policies and procedures regarding reimbursement requirements. C.Compliance and Payment. The obligation of RCO to pay any amount(s) under this Agreement is expressly conditioned on strict compliance with the terms of this Agreement and other agreements between RCO and the Sponsor. D.Retainage Held Until Project Complete. RCO reserves the right to withhold disbursement of the total amount of the grant to the Sponsor until the project has been completed. A project is considered "complete" when: 1.All approved or required activities outlined in the Agreement are done ; 2.On-site signs are in place (if applicable); 3.A final project report is submitted to and accepted by RCO ; 4.Any other required documents and media are complete and submitted to RCO; 5.A final reimbursement request is submitted to RCO ; 6.The completed project has been accepted by RCO; 7.Final amendments have been processed; 8.Fiscal transactions are complete, and 9.RCO has accepted a final boundary map, if requested by RCO, for which the Agreement terms will apply in the future. 10.Notice of Grant (if applicable) filed with the county lands records office and a stamped copy received by RCO E.Requirements for Federal Subawards: Match. The Sponsor’s matching share must comply with 2 C.F.R. § 200.306 (2013). Any shared costs or matching funds and all contributions, including cash and third party in-kind contributions, can be accepted as part of the Sponsor’s matching share when such contributions meet all of the following criteria: 1.Are verifiable from the non-Federal entity's (Sponsor’s) records; 2.Are not included as contributions for any other Federal award; 3.Are necessary and reasonable for accomplishment of project or program objectives; Page 15 of 66RCO Revision Date: USFS Number: Project Number: 4.Are allowable under 2 C.F.R. Part 200, Subpart E—Cost Principles (2013); 5.Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs; 6.Are provided for in the approved budget when required by the Federal awarding agency identified in Section H: FEDERAL FUND INFORMATION of this Agreement; and 7.Conform to other provisions of 2 C.F.R. Part 200, Subpart D—Post Federal Award Requirements (2013), as applicable. F.Requirements for Federal Subawards: Close out. Per 2 C.F.R § 200.343 (2013), the non-Federal entity (Sponsor) must: 1.Submit, no later than 90 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. The Federal awarding agency or pass-through entity (RCO) may approve extensions when requested by the Sponsor. 2.Liquidate all obligations incurred under the Federal award not later than 90 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. 3.Refund any balances of unobligated cash that the Federal awarding agency or pass-through entity (RCO) paid in advance or paid and that are not authorized to be retained by the non-Federal entity (Sponsor) for use in other projects. See OMB Circular A-129 and see 2 C.F.R § 200.345 Collection of amounts due (2013), for requirements regarding unreturned amounts that become delinquent debts. 4.Account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with 2 C.F.R §§ 200.310 Insurance coverage through 200.316 Property rust relationship and 200.329 Reporting on real property (2013). ADVANCE PAYMENTSSECTION 12. Advance payments of or in anticipation of goods or services are not allowed unless approved by the RCO director and are consistent with legal requirements and Manual 8: Reimbursements. See WAC 420-12. RECOVERY OF PAYMENTSSECTION 13. A.Recovery for Noncompliance. In the event that the Sponsor fails to expend funds under this Agreement in accordance with state and federal laws, and/or the provisions of the Agreement , or meet its percentage of the project total, RCO reserves the right to recover grant award funds in the amount equivalent to the extent of noncompliance in addition to any other remedies available at law or in equity. B.Overpayment Payments. The Sponsor shall reimburse RCO for any overpayment or erroneous payments made under the Agreement . Repayment by the Sponsor of such funds under this recovery provision shall occur within 30 days of demand by RCO. Interest shall accrue at the rate of twelve percent (12%) per annum from the time that payment becomes due and owing. Page 16 of 66RCO Revision Date: USFS Number: Project Number: C.Requirements for Federal Subawards. RCO, acting as a pass-through entity, may impose any of the remedies as authorized in 2 C.F.R §§ 200.207 Specific conditions and/or 200.338 Remedies for noncompliance (2013). COVENANT AGAINST CONTINGENT FEESSECTION 14. The Sponsor warrants that no person or selling agent has been employed or retained to solicit or secure this Agreement on an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established agents maintained by the Sponsor for the purpose of securing business. RCO shall have the right, in the event of breach of this clause by the Sponsor, to terminate this Agreement without liability or , in its discretion, to deduct from the Agreement grant amount or consideration or recover by other means the full amount of such commission, percentage, brokerage or contingent fee. INCOME (AND FEES) AND USE OF INCOMESECTION 15. RCFB Projects. See WAC 286-13-110 for additional requirements for projects funded from the RCFB. A.Income. 1.Farm and Forest Account (Farmland and Forestland Preservation Grants). Excepted from this section is income generated and fees paid on/for properties which received funds from the Farm and Forest Account (RCW 79A.15.130). 2.Firearms and Archery Range Recreation Projects. Excepted from this section are safety classes (firearm and/or hunter) for which a facility/range fee must not be charged (RCW 79A.25.210). 3.Compatible source. The source of any income generated in a funded project or project area must be compatible with the funding source and the Agreement and any policies adopted by the RCFB or SRFB. B.Use of Income. Subject to any limitations contained in applicable state or federal law and applicable rules and policies, income or fees generated at a project work site (including entrance, utility corridor permit, cattle grazing, timber harvesting, farming, etc.) during or after the reimbursement period cited in the Agreement, must be used to offset : 1.The Sponsor’s matching resources ; 2.The project’s total cost ; 3.The expense of operation, maintenance, stewardship, monitoring, and/or repair of the facility or program assisted by the funding board grant; 4.The expense of operation, maintenance, stewardship, monitoring, and/or repair of other similar units in the Sponsor’s system ; 5.Capital expenses for similar acquisition and/or development and renovation; and/or 6.Other purposes explicitly approved by RCO C.Fees. User and/or other fees may be charged in connection with land acquired or facilities developed, maintained, renovated, or restored with funding board grants if the fees are consistent with the: 1.Grant program laws, rules, policies, and funding board policies; Page 17 of 66RCO Revision Date: USFS Number: Project Number: 2.Value of any service(s) furnished; 3.Value of any opportunities furnished ; and 4.Prevailing range of public fees in the state for the activity involved. D.Requirements for Federal Subawards. Sponsors must also comply with 2 C.F.R. § 200.307 Program income (2013). PROCUREMENT REQUIREMENTSSECTION 16. A.Procurement Requirements. If the Sponsor has, or is required to have, a procurement process that follows applicable state and/or federal law or procurement rules and principles, it must be followed, documented, and retained. If no such process exists the Sponsor must follow these minimum procedures: 1.Publish a notice to the public requesting bids/proposals for the project; 2.Specify in the notice the date for submittal of bids/proposals; 3.Specify in the notice the general procedure and criteria for selection; and 4.Sponsor must contract or hire from within its bid pool. If bids are unacceptable the process needs to be repeated until a suitable bid is selected. 5.Comply with the same legal standards regarding unlawful discrimination based upon race, gender, ethnicity, sex, or sex-orientation that are applicable to state agencies in selecting a bidder or proposer. Alternatively, Sponsor may choose a bid from a bidding cooperative if authorized to do so. This procedure creates no rights for the benefit of third parties, including any proposers, and may not be enforced or subject to review of any kind or manner by any entity other than the RCO. Sponsors may be required to certify to the RCO that they have followed any applicable state and/or federal procedures or the above minimum procedure where state or federal procedures do not apply. B.Requirements for Federal Subawards. 1.For all Federal subawards except RTP projects , non-Federal entities (Sponsors) must follow 2 C.F.R §§ 200.318 General procurement standards through 200.326 Contract Provisions (2013). 2.For RTP subawards, Sponsors follow such policies and procedures allowed by the State when procuring property and services under a Federal award (2 C.F.R § 1201.317 (2013)). State procurement policies are in subsection A of this section . TREATMENT OF EQUIPMENT AND ASSETSSECTION 17. Equipment shall be used and managed only for the purpose of this Agreement , unless otherwise provided herein or in published funding board policies, or approved by RCO in writing. Page 18 of 66RCO Revision Date: USFS Number: Project Number: A.Discontinued Use. Equipment obtained under this Agreement shall remain in the possession of the Sponsor for the duration of the project, or RULES of applicable grant assisted program. When the Sponsor discontinues use of the equipment for the purpose for which it was funded, RCO may require the Sponsor to deliver the equipment to RCO, or to dispose of the equipment according to RCO published policies. B.Loss or Damage. The Sponsor shall be responsible for any loss or damage to equipment. C.Requirements for Federal Subawards. Except in the RTP, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award or match for the award, until disposition takes place will, at a minimum, meet the following requirements (2 C.F.R § 200.313 (2013)): 1.Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number ), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. 2.A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. 3.A control system must be developed to ensure adequate safeguards to prevent loss , damage, or theft of the property. Any loss, damage, or theft must be investigated. 4.Adequate maintenance procedures must be developed to keep the property in good condition. 5.If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. D.Requirements for RTP Subawards. 1.The subrecipient (Sponsor) shall follow such policies and procedures prescribed by and allowed by the State, as well as federal law and federal rules issued by the Federal Highways Administration and 2 CFR 200. 2.Sponsor may be required to pay prevailing wage rates as required by the Davis Bacon Act as amended. RIGHT OF INSPECTIONSECTION 18. The Sponsor shall provide right of access to the project to RCO, or any of its officers, or to any other authorized agent or official of the state of Washington or the federal government , at all reasonable times, in order to monitor and evaluate performance, long-term obligations, compliance, and/or quality assurance under this Agreement. If a landowner agreement or other form of control and tenure as described in Section 23.C: Control and Tenure has been executed, it will further stipulate and define the funding board and RCO’s right to inspect and access lands acquired or developed with funding board assistance. STEWARDSHIP AND MONITORINGSECTION 19. Page 19 of 66RCO Revision Date: USFS Number: Project Number: Sponsor agrees to perform monitoring and stewardship functions as stated in funding board policy, this Agreement, or as otherwise directed by RCO consistent with existing policies. Sponsor further agrees to utilize, where applicable and financially feasible, any monitoring protocols recommended by the funding board. PREFERENCES FOR RESIDENTSSECTION 20. Sponsors shall not express a preference for users of grant assisted projects on the basis of residence (including preferential reservation, membership, and/or permit systems) except that reasonable differences in admission and other fees may be maintained on the basis of residence. Fees for nonresidents must not exceed twice the fee imposed on residents. Where there is no fee for residents but a fee is charged to nonresidents, the nonresident fee shall not exceed the amount that would be imposed on residents at comparable state or local public facilities. ACKNOWLEDGMENT AND SIGNSSECTION 21. A.Publications. The Sponsor shall include language which acknowledges the funding contribution of the applicable grant program to this project in any release or other publication developed or modified for, or referring to, the project during the project period and in the future. B.Signs. 1.During the period of performance through the period of long-term obligation, the Sponsor shall post openly visible signs or other appropriate media at entrances and other locations on the project area that acknowledge the applicable grant program's funding contribution, unless exempted in funding board policy or waived by the director; and 2.During the period of long-term obligation, the Sponsor shall post openly visible signs or other appropriate media at entrances and other locations to notify the public of the availability of the site for reasonable public access. C.Ceremonies. The Sponsor shall notify RCO no later than two weeks before a dedication ceremony for this project. The Sponsor shall verbally acknowledge the applicable grant program’s funding contribution at all dedication ceremonies. D.Federally Funded Projects. When issuing statements, press releases, requests for proposals, bid solicitations, and other documents describing a project funded in whole or in part with federal money provided for in this grant, Sponsors shall clearly state: 1.The fund source; 2.The percentage of the total costs of the project that is financed with federal money; 3.The dollar amount of federal funds for the project; and 4.The percentage and dollar amount of the total costs of the project that is financed by nongovernmental sources. PROVISIONS FOR BOATING PROJECT GRANTSSECTION 22. If requested by RCO, or required per state or federal law or rule with respect to any project or project element that supports recreational boating, Sponsor shall manage the project or project element per federal rules to include 2 C.F.R. Part 200, and place a United States Coast Guard (or other federal agency) logo and funding program information at the project site. Page 20 of 66RCO Revision Date: USFS Number: Project Number: PROVISIONS APPLYING TO DEVELOPMENT, MAINTENANCE, RENOVATION, AND RESTORATION PROJECTS SECTION 23. The following provisions shall be in force only if the project described in this Agreement is for construction of land or facilities in a development, maintenance, renovation or restoration project: A.Operations and Maintenance. Properties, structures, and facilities developed, maintained, or operated with the assistance of money granted by the board and within the project area shall be built, operated, and maintained according to applicable regulations, laws, building codes, and health and public safety standards to assure a reasonably safe condition and to prevent premature deterioration (WAC 286.13.130). It is the Sponsor’s sole responsibility to ensure the same are operated and maintained in a safe and operable condition. The RCO does not conduct safety inspections or employ or train staff for that purpose . B.Document Review and Approval. Prior to commencing construction or finalizing the design, the Sponsor agrees to submit one copy of all construction and restoration plans and specifications to RCO for review solely for compliance with the scope of work to be identified in the Agreement . RCO does not review for, and disclaims any responsibility to review for safety, suitability, engineering, compliance with code, or any matters other than the scope so identified. Although RCO staff may provide tentative guidance to a Sponsor on matters related to site accessibility by persons with a disability, it is the Sponsor’s responsibility to confirm that all legal requirements for accessibility are met even if the RCO guidance would not meet such requirements. 1.Change orders that impact the amount of funding or changes to the scope of the project as described to and approved by the funding board or RCO must receive prior written approval of the board or RCO. C.Control and Tenure. The Sponsor must provide documentation that shows appropriate tenure (such as landowner agreement, long-term lease, easement, or fee simple ownership) for the land proposed for construction. The documentation must meet current RCO requirements identified in the appropriate grant program policy manual as of the effective date of this Agreement and determines the long-term compliance period unless otherwise approved by the board. D.Nondiscrimination. Except where a nondiscrimination clause required by a federal funding agency is used, the Sponsor shall insert the following nondiscrimination clause in each contract for construction of this project: "During the performance of this contract, the contractor agrees to comply with all federal and state nondiscrimination laws, regulations and policies." E.Use of Best Management Practices. Sponsors are encouraged to use best management practices including those developed as part of the Washington State Aquatic Habitat Guidelines (AHG) Program. AHG documents include “Integrated Streambank Protection Guidelines”, 2002; “Land Use Planning for Salmon, Steelhead and Trout : A land use planner’s guide to salmonid habitat protection and recovery”, 2009”, “Protecting Nearshore Habitat and Functions in Puget Sound”, 2010; “Stream Habitat Restoration Guidelines”, 2012; “Water Crossing Design Guidelines”, 2013; and “Marine Shoreline Design Guidelines”, 2014. These documents, along with new and updated guidance documents, and other information are available on the AHG Web site . Sponsors are also encouraged to use best management practices developed by the Washington Invasive Species Council (WISC) described in “Reducing Accidental Introductions of Invasive Species” which is available on the WISC Web site. PROVISIONS APPLYING TO ACQUISITION PROJECTSSECTION 24. Page 21 of 66RCO Revision Date: USFS Number: Project Number: The following provisions shall be in force only if the project described in this Agreement is an acquisition project (including projects with any acquisition component): A.Evidence of Land Value. Before disbursement of funds by RCO as provided under this Agreement , the Sponsor agrees to supply documentation acceptable to RCO that the cost of the property rights acquired has been established according to funding board policy. B.Evidence of Title. The Sponsor agrees to provide documentation that shows the type of ownership interest for the property that has been acquired. This shall be done before any payment of financial assistance. C.Legal Description of Real Property Rights Acquired. The legal description of the real property rights purchased with funding assistance provided through this Agreement (and protected by a recorded conveyance of rights to the State of Washington ) shall be delivered to RCO before final payment. D.Conveyance of Rights to the State of Washington. When real property rights (both fee simple and lesser interests) are acquired, the Sponsor agrees to execute an appropriate document conveying certain rights and responsibilities to RCO, on behalf of the State of Washington . These documents include a Deed of Right, Assignment of Rights, Easements and/or Leases as described below. The Sponsor agrees to use document language provided by RCO, to record the executed document in the County where the real property lies, and to provide a copy of the recorded document to RCO. The document required will vary depending on the funding board project type, the real property rights being acquired and whether or not those rights are being acquired in perpetuity. 1.Deed of Right. The Deed of Right conveys to the people of the state of Washington the right to preserve, protect, access, and/or use the property for public purposes consistent with the funding source and project agreement. See WAC 286 or 420. Sponsors shall use this document when acquiring real property rights that include the underlying land. This document may also be applicable for those easements where the Sponsor has acquired a perpetual easement for public purposes. 2.Assignment of Rights. The Assignment of Rights document transfers certain rights to RCO and the state such as public access, access for compliance, and enforcement. Sponsors shall use this document when an easement or lease is being acquired under this Agreement . The Assignment of Rights requires the signature of the underlying landowner and must be incorporated by reference in the easement document. 3.Easements and Leases. The Sponsor may incorporate required language from the Deed of Right or Assignment of Rights directly into the easement or lease document , thereby eliminating the requirement for a separate document. Language will depend on the situation; Sponsor must obtain RCO approval on the draft language prior to executing the easement or lease. E.Real Property Acquisition and Relocation Assistance In the event that housing and relocation costs and procedures are required by local, state, tribal, or federal law, or rule; the Sponsor agrees to provide such housing and relocation assistance as a condition of the Agreement and receiving grant funds. F.Buildings and Structures. In general, grant funds are to be used for outdoor recreation, conservation, or salmon recovery. Sponsors agree to remove or demolish ineligible structures. Sponsor must consult with RCO regarding treatment of such structures and compliance with Section 8.D Archeological and Cultural Resources . G.Hazardous Substances. Page 22 of 66RCO Revision Date: USFS Number: Project Number: 1.Certification. The Sponsor shall inspect, investigate, and conduct an environmental audit of the proposed acquisition site for the presence of hazardous substances, as defined in RCW 70.105D.020(13), and certify: a.No hazardous substances were found on the site, or b.Any hazardous substances found have been treated and/or disposed of in compliance with applicable state and federal laws, and the site deemed “clean.” 2.Responsibility. Nothing in this provision alters the Sponsor's duties and liabilities regarding hazardous substances as set forth in RCW 70.105D. 3.Hold Harmless. The Sponsor will defend, protect and hold harmless the State and any and all of its employees and/or agents, from and against any and all liability, cost (including but not limited to all costs of defense and attorneys' fees) and any and all loss of any nature from any and all claims or suits resulting from the presence of, or the release or threatened release of, hazardous substances on the property the Sponsor is acquiring, except to the extent, if any, that the State, its officers and agents caused or contributed to the release . The funding board and RCO are included within the term State, as are all other agencies, departments, boards, councils, committees, divisions, bureaus, offices, societies, or other entities of state government. H.Requirements for Federal Subawards. The non-federal entity (Sponsor) must submit reports at least annually on the status of real property in which the federal government retains an interest, unless the federal interest in the real property extends 15 years or longer. In those instances where the federal interest attached is for a period of 15 years or more, the federal awarding agency or the pass-through entity (RCO), at its option, may require the Sponsor to report at various multi-year frequencies (e.g., every two years or every three years, not to exceed a five-year reporting period; or a federal awarding agency or RCO may require annual reporting for the first three years of a federal award and thereafter require reporting every five years) (2 C.F.R § 200.329 (2013)). LONG-TERM OBLIGATIONS OF THE PROJECTS AND SPONSORSSECTION 25. A.Long-Term Obligations of RCFB Projects. Sponsor shall comply with WAC 286-13-160, 170, and 180. B.Long-Term Obligations of SRFB Projects. Sponsor shall comply with WAC 420. C.Perpetuity. For acquisition, development, and restoration projects, or a combination thereof, unless otherwise allowed by policy, program rules, or this Agreement, or approved in writing by RCO or the funding board, RCO requires that the project area continue to function as intended after the period of performance in perpetuity. Page 23 of 66RCO Revision Date: USFS Number: Project Number: D.Conversion. The Sponsor shall not at any time convert any real property (including any interest therein) or facility acquired, developed, renovated, and/or restored pursuant to this Agreement , unless provided for in applicable statutes, rules, and policies. Conversion includes, but is not limited to, putting such property to uses other than those purposes for which funds were approved or transferring such property to another entity without prior approval via a written amendment to the Agreement. Also see WAC Title 286 or 420 and applicable policies. All real property or facilities acquired, developed, renovated, and/or restored with funding assistance shall remain in the same ownership and in public use/access status in perpetuity unless otherwise expressly provided in the Agreement or applicable policy or unless a transfer or change in use is approved by the funding board through an amendment. Failure to comply with these obligations is a conversion. Further, if the project is subject to operation and or maintenance obligations, the failure to comply with such obligations, without cure after a reasonable period as determined by the RCO, is a conversion. Determination of whether a conversion has occurred shall be based upon this Agreement , applicable law and RCFB/SRFB policies. For acquisition projects that are expressly term limited in the Agreement , such as one involving a lease or a term-limited restoration, renovation or development project or easement, the restriction on conversion shall apply only for the length of the term, unless otherwise provided in this Agreement , by funding board policy, other RCO approved written documents, or required by applicable state or federal law. When a conversion has been determined to have occurred, the Sponsor is required to remedy the conversion per established funding board policies, and the board or RCO may pursue such remedies as are allowed by law and board policies, and/or this Agreement. CONSTRUCTION, OPERATION, USE AND MAINTENANCE OF ASSISTED PROJECTSSECTION 26. The following provisions shall be in force only if the project described in this Agreement is an acquisition , development, maintenance, renovation, or restoration project: A.Property and facility operation and maintenance. Sponsor must ensure that properties or facilities assisted with funding board funds, including undeveloped sites, are built, operated, used, and maintained: 1.According to applicable federal, state, and local laws and regulations, including public health standards and building codes; 2.In a reasonably safe condition for the project’s intended use ; 3.Throughout its estimated useful service life so as to prevent undue deterioration; 4.In compliance with all federal and state nondiscrimination laws, regulations and policies. B.Open to the public. Unless otherwise specifically provided for in the Agreement of funding board policies, and in compliance with applicable statutes, rules, and funding board policies, facilities must be open and accessible to the general public, and must: 1.Be constructed, maintained, and operated to meet or exceed the minimum requirements of the most current guidelines or rules, local or state codes, Uniform Federal Accessibility Standards , guidelines, or rules, including but not limited to: the International Building Code, the Americans with Disabilities Act, and the Architectural Barriers Act , as amended and updated. 2.Appear attractive and inviting to the public except for brief installation, construction, or maintenance periods. Page 24 of 66RCO Revision Date: USFS Number: Project Number: 3.Be available for appropriate use by the general public at reasonable hours and times of the year, according to the type of area or facility, unless otherwise stated in RCO manuals, by a decision of the board, or by RCO in writing. Sponsor shall notify the public of the availability for use by posting and updating that information on its website and by maintaining at entrances and/or other locations openly visible signs with such information. RECORDED NOTICE OF GRANTSECTION 27. At the request of RCO, Sponsor shall record a notice of grant on the property and shall submit to the RCO a recorded and registry stamped copy of such notice. The purpose of the notice of grant is to ensure that the present and future use of the facility is and shall remain subject to the terms and conditions described in this Agreement. The notice of grant shall be in a format specified by RCO. PROVISIONS RELATED TO CORPORATE (INCLUDING NONPROFIT) SPONSORSSECTION 28. A corporate Sponsor, including any nonprofit Sponsor, shall: A.Maintain corporate status with the state, including registering with the Washington Secretary of State’ s office, throughout the Sponsor’s obligation to the project as identified in the Agreement . B.Notify RCO before corporate dissolution at any time during the period of performance or long-term obligations. Within 30 days of dissolution the Sponsor shall name a qualified successor that will agree in writing to assume any on-going project responsibilities, and transfer all property and assets to the successor. A qualified successor is any party eligible to apply for funds in the subject grant program and capable of complying with the terms and conditions of this Agreement . RCO will process an amendment transferring the Sponsor’s obligation to the qualified successor if requirements are met . C.Maintain sites or facilities open to the public and may not limit access to members. PROVISIONS FOR FEDERAL SUBAWARDS ONLYSECTION 29. The following provisions shall be in force only if the project described in this Agreement is funded with a federal subaward as identified in Section H: FEDERAL FUND Information: A.Sub-Recipient (Sponsor) must comply with the cost principles of 2 C.F.R. Part 200 Subpart E (2013). Unless otherwise indicated, the cost principles apply to the use of funds provided under this Agreement to include match and any in-kind matching donations. The applicability of the cost principles depends on the type of organization incurring the costs. B.Binding Official. Per 2 CFR 200.415, Sponsor certifies through its actions or those of authorized staff, at the time of a request for reimbursement, the following: “To the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).” Page 25 of 66RCO Revision Date: USFS Number: Project Number: C.Equal Employment Opportunity. Except as otherwise provided under 41 C.F.R. Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-1.3 must include the equal opportunity clause provided under 41 C.F.R. § 60- 1.4(b), in accordance with Executive Order 11246, Equal Employment Opportunity (30 Fed. Reg. 12319, 12935, 3 C.F.R. Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, Amending Executive Order 11246 Relating to Equal Employment Opportunity, and implementing regulations at 41 C.F.R. Part 60 (Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor). See 2 C.F.R. Part 200, Appendix II, paragraph C. 1.Federally Assisted Construction Contract. The regulation at 41 C.F.R. § 60-1.3 defines a “federally assisted construction contract” as any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work. 2.Construction Work. The regulation at 41 C.F.R. § 60-1.3 defines “construction work” as the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction. D.Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-federal entities (Sponsors) must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity (Sponsor) must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity (Sponsor) must report all suspected or reported violations to the federal awarding agency identified in Section H: Federal Fund Information. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U. S. C. 3145), as supplemented by Department of Labor regulations (29 C.F.R Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient (Sponsor) must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity (Sponsor) must report all suspected or reported violations to the Federal awarding agency identified in Section H: Federal Fund Information. Page 26 of 66RCO Revision Date: USFS Number: Project Number: E.Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-federal entity (Sponsor) in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. F.Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 C.F.R § 401.2(a) and the recipient or subrecipient (Sponsor) wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient (Sponsor) must comply with the requirements of 37 C.F.R Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements ,” and any implementing regulations issued by the awarding agency. G.Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as Amended. Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency identified in Section H: Federal Fund Information and the Regional Office of the Environmental Protection Agency (EPA). H.Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). By signing this Agreement , the Sponsor certifies (per the certification requirements of 31 U.S.C.) that none of the funds that the Sponsor has (directly or indirectly) received or will receive for this project from the United States or any agency thereof, have been used or shall be used to engage in the lobbying of the Federal Government or in litigation against the United States. Such lobbying includes any influence or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress , or an employee of a Member of Congress in connection with this project. Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency , a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Page 27 of 66RCO Revision Date: USFS Number: Project Number: I.Procurement of Recovered Materials. A non-federal entity (Sponsor) that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act . The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines . J.Required Insurance. The non-federal entity (Sponsor) must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with federal funds as provided to property owned by the non-federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award (2 C.F.R § 200.310 (2013)). K.Debarment and Suspension (Executive Orders 12549 and 12689). The Sponsor must not award a contract to parties listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the Office of Management and Budget (OMB) guidelines at 2 C.F.R § 180 that implement Executive Orders 12549 (3 C.F.R part 1986 Comp., p. 189) and 12689 (3 C.F.R part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. L.Conflict of Interest. Sponsor agrees to abide by the conflict of interest policy and requirements of the federal funding agency established pursuant to 2 C.F.R 200. PROVISIONS FOR BOATING INFRASTRUCTURE GRANTSSECTION 30. A.Use of Sport Fish Restoration Logo. Per 50 CFR 86 Sec 75 and 76, the user of the logo must indemnify and defend the United States and hold it harmless from any claims, suits, losses, and damages from; any allegedly unauthorized use of any patent, process, idea, method, or device by the user in connection with its use of the logo, or any other alleged action of the user; and any claims, suits, losses, and damages arising from alleged defects in the articles or services associated with the logo. No one may use any part of the logo in any other manner unless the United States Fish and Wildlife Service’s Assistant Director for Wildlife and Sport Fish Restoration or Regional Director approves in writing. PROVISIONS FOR FIREARMS AND ARCHERY RANGE RECREATION PROJECTS ONLYSECTION 31. The following provisions shall be in force only if the project described in this Agreement is funded from the Firearms and Archery Range Recreation Account . A.Liability Insurance. The Sponsor of a firearms or archery range recreation project shall procure an endorsement, or other addition, to liability insurance it carries, or shall procure a new policy of liability insurance, in a total coverage amount the Sponsor deems adequate to ensure it will have resources to pay successful claims of people who may be killed or injured, or suffer damage to property , while present at the range facility to which this grant is related, or by reason of being in the vicinity of that facility; provided that the coverage shall be at least one million dollars ($1,000,000) for the death of, or injury to, each person. B.Insurance Endorsement. The liability insurance policy, including any endorsement or addition, shall name Washington State, the funding board, and RCO as additional insured and shall be in a form approved by the funding board or director. Page 28 of 66RCO Revision Date: USFS Number: Project Number: C.Length of Insurance. The policy, endorsement or other addition, or a similar liability insurance policy meeting the requirements of this section, shall be kept in force throughout the Sponsor's obligation to the project as identified in this Agreement in Section F . LONG-TERM OBLIGATIONS. D.Notice of Cancellation. The policy, as modified by any endorsement or other addition, shall provide that the issuing company shall give written notice to RCO not less than thirty (30) calendar days in advance of any cancellation of the policy by the insurer, and within ten (10) calendar days following any termination of the policy by the Sponsor. E.Government Agencies. The requirement of Subsection A through D above shall not apply if the Sponsor is a federal, state, or municipal government which has established a program of self-insurance or a policy of self-insurance with respect to claims arising from its facilities or activities generally, including such facilities as firearms or archery ranges, when the applicant declares and describes that program or policy as a part of its application to the funding board. F.Sole Duty of the Sponsor. By this requirement, the funding board and RCO does not assume any duty to any individual person with respect to death, injury, or damage to property which that person may suffer while present at , or in the vicinity of, the facility to which this grant relates. Any such person, or any other person making claims based on such death, injury, or damage, must look to the Sponsor, or others, for any and all remedies that may be available by law. PROVISIONS FOR LAND AND WATER CONSERVATION FUND PROJECTS ONLYSECTION 32. If the project has been approved by the National Park Service, US Department of the Interior, for funding assistance from the federal Land and Water Conservation Fund (LWCF), the “LWCF Grant Agreement General Provisions” are made part of this Agreement and incorporated herein . The Sponsor shall abide by these LWCF General Provisions, in addition to this Agreement , as they now exist or are hereafter amended. Further, the Sponsor agrees to provide RCO with reports or documents needed to meet the requirements of the LWCF General Provisions . PROVISIONS FOR FARM AND FOREST ACCOUNT PROJECTS (FARMLAND AND FORESTLAND PRESERVATION PROJECTS ONLY) SECTION 33. The following sections will not apply to Farmland and Forestland Preservation Projects if covered separately in a recorded RCO approved Agricultural Conservation Easement, or Forest Conservation Easement (or other method): A.Section 15 - Income and Income Use; B.Section 19 - Stewardship and Monitoring; C.Section 21 - Acknowledgement and Signs; D.Section 24 -- Provisions Applying To Acquisition Projects , Sub-sections D, F, and G; E.Section 25C -Perpetuity; and F.Section 26 -- Construction, Operation, Use and Maintenance of Assisted Projects . PROVISIONS FOR SALMON RECOVERY FUNDING BOARD PROJECTS ONLYSECTION 34. Page 29 of 66RCO Revision Date: USFS Number: Project Number: For habitat restoration projects funded in part or whole with federal funds administered by the SRFB the Sponsor shall not commence with clearing of riparian trees or in-water work unless either the Sponsor has complied with 50 C.F.R. § 223.203 (b)(8) (2000), limit 8 or until an Endangered Species Act consultation is finalized in writing by the National Oceanic and Atmospheric Administration . Violation of this requirement may be grounds for terminating this Agreement . This section shall not be the basis for any enforcement responsibility by RCO. PROVISIONS FOR PUGET SOUND ACQUISITION AND RESTORATION PROJECTS ONLYSECTION 35. The following provisions shall be in force only if the project described in this Agreement is funded in part or wholly from the Puget Sound Acquisition and Restoration program . The Sponsor agrees to the following terms and conditions: A.Cost Principles/Indirect Costs For State Agencies. GRANT RECIPIENT agrees to comply with the cost principles of 2 CFR 200 Subpart E as appropriate to the award. In addition to the US Environmental Protection Agency’s General Terms and Conditions “Indirect Cost Rate Agreements ,” if the recipient does not have a previously established indirect cost rate, it agrees to prepare and submit its indirect cost rate proposal in accordance with 2 CFR 200 Appendix VII. B.Credit and Acknowledgement. In addition to Section 21: Acknowledgement and Signs, materials produced must display both the Environmental Protection Agency (EPA) and Puget Sound Partnership (PSP) logos and the following credit line: "This project has been funded wholly or in part by the United States Environmental Protection Agency . The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency , nor does mention of trade names or commercial products constitute endorsement or recommendation for use.” This requirement is for the life of the product, whether during or after the Agreement period of performance . C.Hotel Motel Fire Safety Act. Sponsor agrees to ensure that all conference, meeting, convention, or training space funded in whole or part with federal funds, complies with the federal Hotel and Motel Fire Safety Act (PL 101-391, as amended). Sponsors may search the Hotel-Motel National Master List @ http://www.usfa.dhs.gov/applications/hotel to see if a property is in compliance or to find other information about the Act . D.Drug Free Workplace Certification. Sub-recipient (Sponsor) shall make an ongoing, good faith effort to maintain a drug-free workplace pursuant to the specific requirements set forth in 2 C.F.R. Part 1536 Subpart B. Additionally, in accordance with these regulations, the recipient organization shall identify all known workplaces under its federal awards, and keep this information on file during the performance of the award. Sponsors who are individuals must comply with the drug-free provisions set forth in 2 C.F.R. Part 1536 Subpart C. The consequences for violating this condition are detailed under 2 C.F.R. Part 1536 Subpart E. E.Management Fees. Management fees or similar charges in excess of the direct costs and approved indirect rates are not allowable. The term “management fees or similar charges” refers to the expenses added to direct costs in order to accumulate and reserve funds for ongoing business expenses, unforeseen liabilities or for other similar costs that are not allowable. Management fees or similar charges may not be used to improve or expand the project funded under this Agreement , except for the extent authorized as a direct cost of carrying out the scope of work. F.Trafficking in Persons and Trafficking Victim Protection Act of 2000 (TVPA). This provision applies only to a sub-recipient (Sponsor), and all sub-awardees of sub-recipient (Sponsor), if any. Sub-recipient (Sponsor) shall include the following statement in all sub-awards made to any private entity under this Agreement . Page 30 of 66RCO Revision Date: USFS Number: Project Number: “You as the sub-recipient, your employees, sub-awardees under this award, and sub-awardees’ employees may not engage in severe forms of trafficking in persons during the period of time that the award is in effect ; procure a commercial sex act during the period of time that the award is in effect ; or use forced labor in the performance of the award or sub-awards under this Award .” The sub-recipient (Sponsor), and all sub-awardees of sub-recipient (Sponsor) must inform RCO immediately of any information you receive from any source alleging a violation of this prohibition during the award term. The federal agency funding this Agreement may unilaterally terminate , without penalty, the funding award if this prohibition is violated, Section 106 of the Trafficking Victims Protection Act of 2000, as amended. G.Lobbying. The chief executive officer of this recipient agency (Sponsor) shall ensure that no grant funds awarded under this Agreement are used to engage in lobbying of the Federal Government or in litigation against the United States, unless authorized under existing law. The recipient (Sponsor) shall abide by its respective Cost Principles (OMB Circulars A-21, A-87, and A-122), which generally prohibits the use of federal grant funds for litigation against the United States, or for lobbying or other political activities. The Sponsor agrees to comply with 40 C.F.R. Part 34, New Restrictions on Lobbying. Sponsor shall include the language of this provision in award documents for all sub-awards exceeding $100,000, and require that sub-awardees submit certification and disclosure forms accordingly. In accordance with the Byrd Anti -Lobbying Amendment, any Sponsor who makes a prohibited expenditure under 40 C.F.R. Part 34 or fails to file the required certification or lobbying forms shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each expenditure. All contracts awarded by Sponsor shall contain, when applicable, the anti-lobbying provisions as stipulated in the Appendix at 40 C.F.R. Part 30. Pursuant to Section 18 of the Lobbying Disclosure Act , Sponsor affirms that it is not a non -profit organization described in Section 501(c)(4) of the Internal Revenue Code of 1986; or that it is a non-profit organization described in Section 501(c)(4) of the code but does not and will not engage in lobbying activities as defined in Section 3 of the Lobbying Disclosure Act . H.Reimbursement Limitation. If the Sponsor expends more than the amount of RCO funding in this Agreement in anticipation of receiving additional funds from the RCO, it does so at its own risk. RCO is not legally obligated to reimburse the Sponsor for costs incurred in excess of the RCO approved budget. I.Disadvantaged Business Enterprise Requirements. The Sponsor agrees to comply with the requirements of EPA’s Utilization of Small , Minority and Women’s Business Enterprises in procurements made under this award. J.Minority and Women’s Business Participation. Sponsor agrees to solicit and recruit, to the maximum extent possible, certified minority owned (MBE) and women owned (WBE) businesses in purchases and contracts initiated after the effective date of this Agreement . These goals are expressed as a percentage of the total dollars available for purchase or agreement and are as follows: Purchased Goods 8% MBE 4% WBE Page 31 of 66RCO Revision Date: USFS Number: Project Number: Purchased Services 10% MBE 4% WBE Professional Services 10% MBE 4% WBE Meeting these goals is voluntary and no agreement award or rejection shall be made based on achievement or non-achievement of the goals. Achievement of the goals is encouraged, however, and Sponsor and ALL prospective bidders or people submitting qualifications shall take the following affirmative steps in any procurement initiated after the effective date of this Agreement : 1.Include qualified minority and women’s businesses on solicitation lists . 2.Assure that qualified minority and women’s business are solicited whenever they are potential sources of services or supplies. 3.Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women’s businesses . 4.Establish delivery schedules, where work requirements permit, which will encourage participation of qualified minority and women’s businesses . 5.Use the services and assistance of the State Office of Minority and Women’s Business Enterprises (OMWBE) and the Office of Minority Business Enterprises of the U .S. Department of Commerce, as appropriate. K.MBE/WBE Reporting. In accordance with the deviation from 40 C.F.R. §33.502, signed November 8, 2013, DBE reporting is limited to annual reports and only required for assistance agreements where one or more the following conditions are met: 1.There are any funds budgeted in the contractual/services, equipment or construction lines of the award; 2.$3,000 or more is included for supplies; or 3.There are funds budgeted for subawards or loans in which the expected budget(s) meet the conditions as 4.Described in items (a) and (b). When completing the form, recipients (Sponsors) should disregard the quarterly and semi-annual boxes in the reporting period Section 1B of the form. For annual submissions, the reports are due by October 30th of each year or 90 days after the end of the project period, whichever comes first. The reporting requirement is based on planned procurements. Recipients (Sponsors) with funds budgeted for non-supply procurement and/or $3,000 or more in supplies are required to report annually whether the planned procurements take place during the reporting period or not. If no procurements take place during the reporting period, the recipient should check the box in Section 5B when completing the form. MBE/WBE reports should be sent to the DBE Coordinator in the Sponsor’s region . Contact information can be found at http://www.epa.gov/osbp/contactpage.htm. The coordinators also can answer any questions. Page 32 of 66RCO Revision Date: USFS Number: Project Number: Final MBE/WBE reports must be submitted within 90 days after the project period of the grant ends. To be in compliance with regulations , the Sponsor must submit a final MBE/WBE report. Non-compliance may impact future competitive grant proposals. The current EPA Form 5700-52A can be found at the EPA Office of Small Business Program’s Home Page at http://www.epa.gov/osbp/dbe_reporting.htm. L.Procurement involving an EPA Financial Assistance Agreement. Pursuant to 40 C.F.R. § 33.301, the Sponsor agrees to make the following six good faith efforts whenever procuring construction , equipment, services and supplies under an EPA financial assistance agreement , and to require that sub-recipients (Sponsors), and prime contractors also comply. Records documenting compliance with the six good faith efforts shall be retained : 1.Ensure Disadvantaged Business Enterprise (DBEs) are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government Sponsors, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources. 2.Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date. 3.Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. For Indian Tribal, State and local Government Sponsors, this will include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process. 4.Encourage contracting with a consortium of DBEs when an agreement is too large for one of these firms to handle individually. 5.Use the services and assistance of the Small Business Administration (SBA) and the Minority Business Development of the Department of Commerce. 6.If the Sponsor awards subcontracts, require the Sponsor to take the steps in paragraphs (a) through (e) of this section. M.Lobbying & Litigation. By signing this Agreement , the Sponsor certifies that none of the funds received from this Agreement shall be used to engage in the lobbying of the Federal Government or in litigation against the United States unless authorized under existing law. The chief executive officer of this Sponsor agency shall ensure that no grant funds awarded under this Agreement are used to engage in lobbying of the Federal Government or in litigation against the United States unless authorized under existing law. The Sponsor shall abide by its respective Attachment in 2 C.F.R. Part 200, which prohibits the use of federal grant funds for litigation against the United States or for lobbying or other political activities. For subawards exceeding $100,000, EPA requires the following certification and disclosure forms : 1.Certification Regarding Lobbying, EPA Form 6600-06: http://www.epa.gov/ogd/AppKit/form/Lobbying_sec.pdf 2.Disclosure of Lobbying Activities , SF LLL: http://www.epa.gov/ogd/AppKit/form/sflllin_sec.pdf Page 33 of 66RCO Revision Date: USFS Number: Project Number: 3.Legal expenses required in the administration of Federal programs are allowable. Legal expenses for prosecution of claims against the Federal Government are unallowable. N.Payment to Consultants. EPA participation in the salary rate (excluding overhead) paid to individual consultants retained by recipients (Sponsors) or by a recipients’ (Sponsor’s) contractors or subcontractors shall be limited to the maximum daily rate for Level IV of the Executive Schedule (formerly GS-18), to be adjusted annually. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. This rate does not include transportation and subsistence costs for travel performed (the recipient will pay these in accordance with his/her normal travel reimbursement practices). Subagreements with firms for services that are awarded using the procurement requirements in 40 C.F.R. Parts 30 or 31, are not affected by this limitation unless the terms of the contract provide the recipient (Sponsor) with responsibility for the selection, direction and control of the individual who will be providing services under the contract at an hourly or daily rate of compensation. See 40 C.F.R. § 30.27(b) or 40 C.F.R. § 31.369(j), as applicable, for additional information. As of January 1, 2014, the limit is $602.24 per day $75.28 per hour. O.Peer Review. Where appropriate, prior to finalizing any significant technical products the Principal Investigator (PI) of this project must solicit advice, review, and feedback from a technical review or advisory group consisting of relevant subject matter specialists. A record of comments and a brief description of how respective comments are addressed by the PI will be provided to the Project Monitor prior to releasing any final reports or products resulting from the funded study. P.International Travel (Including Canada). All International Travel must be approved by the US Environmental Protection Agency’s Office of International and Tribal Affairs (OITA) BEFORE travel occurs. Even a brief trip to a foreign country, for example to attend a conference, requires OITA approval. Please contact your Partnership Project manager as soon as possible if travel is planned out of the country, including Canada and/or Mexico, so that they can submit a request to the EPA Project Officer if they approve of such travel . Q.Unliquidated Obligations (ULO). Sub-recipients, and all sub-awardees of Sub-Recipients, if any, should manage their agreement and subaward funding in ways that reduce the length of time that federal funds obligated and committed to subaward projects are unspent (not yet drawn down through disbursements to sub-recipients and sub-awardees). ORDER OF PRECEDENCESECTION 36. This Agreement is entered into , pursuant to, and under the authority granted by applicable federal and state laws. The provisions of the Agreement shall be construed to conform to those laws . In the event of a direct and irreconcilable conflict between the terms of this Agreement and any applicable statute , rule, or policy or procedure, the conflict shall be resolved by giving precedence in the following order: 1.Federal law and binding executive orders; 2.Code of federal regulations; 3.Terms and conditions of a grant award to the state from the federal government ; 4.Federal grant program policies and procedures adopted by a federal agency that are required to be applied by federal law; 5.State law (constitution, statute); Page 34 of 66RCO Revision Date: USFS Number: Project Number: 6.Washington Administrative Code ; 7.Funding board or RCO policies. LIMITATION OF AUTHORITYSECTION 37. Only RCO’s Director or RCO’s delegate by writing (delegation to be made prior to action) shall have the authority to alter, amend, modify, or waive any clause or condition of this Agreement ; provided that any such alteration, amendment, modification, or waiver of any clause or condition of this Agreement is not effective or binding unless made as a written amendment to this Agreement and signed by the RCO Director or delegate . WAIVER OF DEFAULTSECTION 38. Waiver of any default shall not be deemed to be a waiver of any subsequent default . Waiver or breach of any provision of the Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of the Agreement unless stated to be such in writing , signed by the director, or the director’s designee , and attached as an amendment to the original Agreement . APPLICATION REPRESENTATIONS – MISREPRESENTATIONS OR INACCURACY OR BREACH SECTION 39. The funding board and RCO rely on the Sponsor’s application in making its determinations as to eligibility for , selection for, and scope of, funding grants. Any misrepresentation, error or inaccuracy in any part of the application may be deemed a breach of this Agreement . SPECIFIC PERFORMANCESECTION 40. The funding board and RCO may enforce this Agreement by the remedy of specific performance , which usually will mean completion of the project as described in this Agreement and /or enforcement of long-term obligations. However, the remedy of specific performance shall not be the sole or exclusive remedy available to RCO. No remedy available to the funding board or RCO shall be deemed exclusive. The funding board or RCO may elect to exercise any, a combination of, or all of the remedies available to it under this Agreement , or under any provision of law, common law, or equity, including but not limited to seeking full or partial repayment of the grant amount paid and damages. TERMINATION AND SUSPENSIONSECTION 41. The funding board and RCO will require strict compliance by the Sponsor with all the terms of this Agreement including, but not limited to, the requirements of the applicable statutes, rules and all funding board and RCO policies, and with the representations of the Sponsor in its application for a grant as finally approved by the funding board. For federal awards, notification of termination will comply with 2 C.F.R. § 200.340. A.For Cause. 1.The funding board or the director may suspend or terminate the obligation to provide funding to the Sponsor under this Agreement : a.If the Sponsor breaches any of the Sponsor's obligations under this Agreement ; b.If the Sponsor fails to make progress satisfactory to the funding board or director toward completion of the project by the completion date set out in this Agreement . Included in progress is adherence to milestones and other defined deadlines; or c.If the primary and secondary Sponsor(s) cannot mutually agree on the process and actions needed to implement the project; Page 35 of 66RCO Revision Date: USFS Number: Project Number: 2.Prior to termination, the RCO or the funding board shall notify the Sponsor in writing of the opportunity to cure. If corrective action is not taken within 30 days or such other time period that the director or board approves in writing, the Agreement may be terminated . In the event of termination, the Sponsor shall be liable for damages or other relief as authorized by law and/or this Agreement. 3.RCO reserves the right to suspend all or part of the Agreement , withhold further payments, or prohibit the Sponsor from incurring additional obligations of funds during the investigation of any alleged breach and pending corrective action by the Sponsor, or a decision by the RCO to terminate the Contract. B.For Convenience. Except as otherwise provided in this Agreement , RCO may, by ten (10) days written notice, beginning on the second day after the mailing, terminate this Agreement, in whole or in part when it is in the best interest of the state. If this Agreement is so terminated , RCO shall be liable only for payment required under the terms of this Agreement prior to the effective date of termination . A claimed termination for cause shall be deemed to be a "Termination for Convenience " if it is determined that: 1.The Sponsor was not in default; or 2.Failure to perform was outside Sponsor’s control , fault or negligence. C.Rights of Remedies of the RCO. 1.The rights and remedies of RCO provided in this Agreement are not exclusive and are in addition to any other rights and remedies provided by law. 2.In the event this Agreement is terminated by the funding board or director , after any portion of the grant amount has been paid to the Sponsor under this Agreement , the funding board or director may require that any amount paid be repaid to RCO for redeposit into the account from which the funds were derived. However, any repayment shall be limited to the extent it would be inequitable and represent a manifest injustice in circumstances where the project will fulfill its fundamental purpose for substantially the entire period of performance and of long-term obligation. D.Non Availability of Funds. The obligation of the RCO to make payments is contingent on the availability of state and federal funds through legislative appropriation and state allotment. If amounts sufficient to fund the grant made under this Agreement are not appropriated to RCO for expenditure for this Agreement in any biennial fiscal period , RCO shall not be obligated to pay any remaining unpaid portion of this grant unless and until the necessary action by the Legislature or the Office of Financial Management occurs. If RCO participation is suspended under this section for a continuous period of one year, RCO’s obligation to provide any future funding under this Agreement shall terminate. Termination of the Agreement under this section is not subject to appeal by the Sponsor . 1.Suspension: The obligation of the RCO to manage contract terms and make payments is contingent upon the state appropriating state and federal funding each biennium. In the event the state is unable to appropriate such funds by the first day of each new biennium RCO reserves the right to suspend the Agreement , with ten (10) days written notice, until such time funds are appropriated. Suspension will mean all work related to the contract must cease until such time funds are obligated to RCO and the RCO provides notice to continue work. DISPUTE HEARINGSECTION 42. Page 36 of 66RCO Revision Date: USFS Number: Project Number: Except as may otherwise be provided in this Agreement , when a dispute arises between the Sponsor and the funding board, which cannot be resolved, either party may request a dispute hearing according to the process set out in this section. Either party’s request for a dispute hearing must be in writing and clearly state : A.The disputed issues; B.The relative positions of the parties; C.The Sponsor’s name, address, project title, and the assigned project number. In order for this section to apply to the resolution of any specific dispute or disputes, the other party must agree in writing that the procedure under this section shall be used to resolve those specific issues. The dispute shall be heard by a panel of three persons consisting of one person chosen by the Sponsor, one person chosen by the director, and a third person chosen by the two persons initially appointed. If a third person cannot be agreed on, the third person shall be chosen by the funding board’s chair. Any hearing under this section shall be informal, with the specific processes to be determined by the disputes panel according to the nature and complexity of the issues involved. The process may be solely based on written material if the parties so agree. The disputes panel shall be governed by the provisions of this Agreement in deciding the disputes . The parties shall be bound by the decision of the disputes panel, unless the remedy directed by that panel shall be without the authority of either or both parties to perform, as necessary, or is otherwise unlawful. Request for a disputes hearing under this section by either party shall be delivered or mailed to the other party. The request shall be delivered or mailed within thirty (30) days of the date the requesting party has received notice of the action or position of the other party which it wishes to dispute. The written agreement to use the process under this section for resolution of those issues shall be delivered or mailed by the receiving party to the requesting party within thirty (30) days of receipt by the receiving party of the request. All costs associated with the implementation of this process shall be shared equally by the parties. ATTORNEYS’ FEESSECTION 43. In the event of litigation or other action brought to enforce contract terms, each party agrees to bear its own attorney fees and costs. GOVERNING LAW/VENUESECTION 44. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington . In the event of a lawsuit involving this Agreement , venue shall be in Thurston County Superior Court if legally proper; otherwise venue shall be in a county where the project is situated, if venue there is legally proper, and if not, in a county where venue is legally proper. The Sponsor, by execution of this Agreement acknowledges the jurisdiction of the courts of the State of Washington . PROVISIONS APPLICABLE ONLY IF FEDERALLY RECOGNIZED INDIAN TRIBE IS THE SPONSOR SECTION 45. In the cases where this Agreement is between the funding board (which includes the State of Washington for purposes of this Agreement ) and a federally recognized Indian Tribe , the following terms and conditions apply, but only between those parties: Page 37 of 66RCO Revision Date: USFS Number: Project Number: A.Notwithstanding the above venue provision, if the State of Washington intends to initiate legal action against a federally recognized Indian tribe relating to the performance, breach, or enforcement of this Agreement, it shall so notify the Tribe . If the Tribe believes that a good faith basis exists for subject matter jurisdiction of such an action in federal court, the Tribe shall so notify the State within five days of receipt of such notice and state the basis for such jurisdiction. If the Tribe so notifies the State , the State shall bring such action in federal court, otherwise the State may sue the Tribe in the Thurston County Superior Court, or such other superior court where venue is proper, if not proper in Thurston County. Interpretation of the Agreement shall be according to applicable State law , except to the extent preempted by federal law. In the event suit is brought in federal court and the federal court determines that it lacks subject matter jurisdiction to resolve the dispute between the State and Tribal Party, then the State may bring suit in Thurston County Superior Court or such other superior court where venue is proper, if not proper in Thurston County . B.Any judicial award, determination, order, decree or other relief, whether in law or equity or otherwise, resulting from such actions under subsection A above , shall be binding and enforceable on the parties. Any money judgment or award against a Tribe , tribal officers, or employees, or the State of Washington, its agencies, or its officers and employees may exceed the amount of funding awarded under this Agreement . C.As requested by RCO, the Tribe shall provide to RCO its governing requirements and procedures for entering into Agreement with RCO and waiving its sovereign immunity . In addition, the tribe shall provide to RCO all authorizations the Tribe requires to authorize the person (s) signing the Agreement on the Tribe’s behalf to bind the Tribe and waive the Tribe’s sovereign immunity as provided herein . D.The Tribe hereby waives its sovereign immunity for suit in federal and state court for the limited purposes of allowing the State to bring and prosecute to completion such actions relating to the performance, breach, or enforcement of this Agreement as provided in subsection A above , and to bring actions to enforce any judgment arising from such actions. This waiver is not for the benefit of any third party and shall not be enforceable by any third party or by any assignee of the parties. In any enforcement action, the parties shall bear their own enforcement costs, including attorneys’ fees . For purposes of this provision, the State includes the funding board, the RCO, and any other state agencies as the term “agency” is broadly understood to include, but not be limited to, departments, commissions, boards, divisions, bureaus, committees, offices, councils, societies, etc. SEVERABILITYSECTION 46. The provisions of this Agreement are intended to be severable . If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Agreement. Page 38 of 66RCO Revision Date: USFS Number: Project Number: Table of Contents Recreation and Conservation Office Agreement 1 Standard Terms and Conditions of the Recreation and Conservation Office Agreement 4 CITATIONS, HEADINGS AND DEFINITIONSSECTION 1. 6 PERFORMANCE BY THE SPONSORSECTION 2. 10 ASSIGNMENTSECTION 3. 10 RESPONSIBILITY FOR PROJECTSECTION 4. 10 INDEMNIFICATIONSECTION 5. 10 INDEPENDENT CAPACITY OF THE SPONSORSECTION 6. 11 CONFLICT OF INTERESTSECTION 7. 11 COMPLIANCE WITH APPLICABLE LAWSECTION 8. 11 RECORDSSECTION 9. 13 PROJECT FUNDINGSECTION 10. 13 PROJECT REIMBURSEMENTSSECTION 11. 14 ADVANCE PAYMENTSSECTION 12. 15 RECOVERY OF PAYMENTSSECTION 13. 15 COVENANT AGAINST CONTINGENT FEESSECTION 14. 16 INCOME (AND FEES) AND USE OF INCOMESECTION 15. 16 PROCUREMENT REQUIREMENTSSECTION 16. 17 TREATMENT OF EQUIPMENT AND ASSETSSECTION 17. 17 RIGHT OF INSPECTIONSECTION 18. 18 STEWARDSHIP AND MONITORINGSECTION 19. 18 PREFERENCES FOR RESIDENTSSECTION 20. 18 ACKNOWLEDGMENT AND SIGNSSECTION 21. 18 PROVISIONS FOR BOATING PROJECT GRANTSSECTION 22. 19 PROVISIONS APPLYING TO DEVELOPMENT, MAINTENANCE, RENOVATION, AND RESTORATION PROJECTS SECTION 23. 19 PROVISIONS APPLYING TO ACQUISITION PROJECTSSECTION 24. 20 LONG-TERM OBLIGATIONS OF THE PROJECTS AND SPONSORSSECTION 25. 22 CONSTRUCTION, OPERATION, USE AND MAINTENANCE OF ASSISTED PROJECTS SECTION 26. 22 RECORDED NOTICE OF GRANTSECTION 27. 23 PROVISIONS RELATED TO CORPORATE (INCLUDING NONPROFIT) SPONSORS SECTION 28. 23 Page 39 of 66RCO Revision Date: USFS Number: Project Number: PROVISIONS FOR FEDERAL SUBAWARDS ONLYSECTION 29. 23 ORDER OF PRECEDENCESECTION 30. 26 LIMITATION OF AUTHORITYSECTION 31. 26 WAIVER OF DEFAULTSECTION 32. 26 APPLICATION REPRESENTATIONS – MISREPRESENTATIONS OR INACCURACY OR BREACH SECTION 33. 27 SPECIFIC PERFORMANCESECTION 34. 27 TERMINATION AND SUSPENSIONSECTION 35. 27 DISPUTE HEARINGSECTION 36. 28 ATTORNEYS’ FEESSECTION 37. 29 GOVERNING LAW/VENUESECTION 38. 29 PROVISIONS APPLICABLE ONLY IF FEDERALLY RECOGNIZED INDIAN TRIBE IS THE SPONSOR SECTION 39. 29 SEVERABILITYSECTION 40. 30 Page 40 of 66RCO Revision Date: USFS Number: Project Number: Project Number:Project Sponsor:18-1383DCity of Bremerton Standard Terms and Conditions of the Recreation and Conservation Office Agreement Approval Date:Warren Ave. Playfield Lighting & ADA ImprovementsProject Title: CITATIONS, HEADINGS AND DEFINITIONSSECTION 1. A.Any citations referencing specific documents refer to the current version on the effective date of this Agreement or the effective date of any amendment thereto . B.Headings used in this Agreement are for reference purposes only and shall not be considered a substantive part of this Agreement . C.Definitions. As used throughout this Agreement , the following terms shall have the meaning set forth below: acquisition project – A project that purchases or receives a donation of fee or less than fee interests in real property. These interests include, but are not limited to, conservation easements, access/trail easements, covenants, water rights, leases, and mineral rights. Agreement or project agreement – Agreement or project agreement – The document entitled “Recreation and Conservation Office Agreement” accepted by all parties to the present transaction , including without limitation these Standard Terms and Conditions of the Project Agreement , all attachments, addendums, and amendments, and any intergovernmental agreements or other documents that are incorporated into the RCO Office Agreement subject to any limitations on their effect . applicable manual(s) - A manual designated in this Agreement to apply as terms of this Agreement , subject to substitution of the “RCO director” for instances where the term “board” occurs. applicable WAC(s) - Designated chapters or provisions of the Washington Administrative Code that are deemed under this Agreement to apply as terms of the Agreement , subject to substitution of the “RCO director” for instances where the term “board” occurs. applicant – Any party that meets the qualifying standards , including deadlines, for submission of an application soliciting a grant of funds administered by RCO. application – The documents and other materials that an applicant submits to the RCO to support the applicant’s request for grant funds ; this includes materials required for the “Application” in the RCO’s automated project information system, and other documents as noted on the application checklist including but not limited to legal opinions, maps, plans, evaluation presentations and scripts. Authorized Representative/Agent – A Sponsor’s agent (employee, political appointee, elected person, etc.) authorized to be the signatory of this Agreement and any amendments requiring a Sponsor signature. This person has the signature authority to bind the Sponsor to this Agreement , grant, and project. C.F.R. – Code of Federal Regulations contractor – An entity that receives a contract from a Sponsor related to performance of work or another obligation under this Agreement . Page 41 of 66RCO Revision Date: USFS Number: Project Number: conversion – A conversion occurs 1) when facilities acquired, developed, renovated or restored within the project area are changed to a use other than that for which funds were approved, without obtaining prior written formal RCO or board approval, 2) when property interests are conveyed to a third party not otherwise eligible to receive grants in the program from which funding was approved without obtaining prior written formal RCO or board approval, or 3) when obligations to operate and maintain the funded property are not complied with after reasonable opportunity to cure. development project – A project that results in the construction of , or work resulting in, new elements, including but not limited to structures, facilities, and/or materials to enhance outdoor recreation resources. director – The chief executive officer of the Recreation and Conservation Office or that person’s designee. education project – A project that provides information , education, and outreach programs for the benefit of outdoor recreationists. education and enforcement project – A project that provides information , education, and outreach programs; encourages responsible recreational behavior, and may provide law enforcement for the benefit of outdoor recreationists. effective date – The date when the signatures of all parties to this agreement are present in the agreement. enhancement project – 1) A project that brings a site back to its historic function as part of a natural ecosystem or that improves the ecological functionality of a site, or 2) a project that (i) supports hatchery reform to improve hatchery effectiveness to minimize impacts to wild fish populations , (ii) ensures compatibility between hatchery production and salmon recovery programs, or (iii) supports sustainable fisheries (WAC 420.04.010). equipment – Tangible personal property (including information technology systems) having a useful service life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the Sponsor or $5,000 (2 C.F.R. § 200.33 (2013)). funding board or board – The Washington State Recreation and Conservation Funding Board , and Washington State Salmon Recovery Funding Board . Funding Entity – the entity that awards the grant and provides the funding that is the subject to this Agreement. This entity may be the RCO if it is the source of the grant. The Funding Entity may also be a different entity that provides the funding and contracts with the RCO to administer the grant . grant - the funding awarded that is the subject of this Agreement . grant program – The source of the grant funds received . May be an account in the state treasury, or a grant category within a larger grant program, or a federal source. indirect cost – Costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved (2 C.F.R. § 200.56 (2013)). long-term compliance period – The period of time after the project end date or end of the period of performance (depending on the project types and grant program). During this period, the Sponsor has continuing obligations under the Agreement . This period may have a nonspecific end date (in perpetuity) or an expressly specified number of years. Page 42 of 66RCO Revision Date: USFS Number: Project Number: long-term obligations – Sponsor’s obligations after the project end date , as specified in the Agreement and applicable regulations and policies. landowner agreement – An agreement that is required between a Sponsor and landowner for projects located on land not owned, or otherwise controlled, by the Sponsor. maintenance – A project that maintains existing areas and facilities through repairs and upkeep for the benefit of outdoor recreation or salmon recovery. maintenance and operation – A project that maintains and operates existing areas and facilities through repairs, upkeep, and routine services for the benefit of outdoor recreationists. match or matching share – The portion of the total project cost provided by the Sponsor . milestone – An important event with a defined date to track an activity related to implementation of a funded project and monitor significant stages of project accomplishment. monitoring project – Means a project that tracks the effectiveness of salmon recovery restoration actions, or provides data on salmon populations or their habitat conditions. monitoring and research project – Means a project that tracks the effectiveness of salmon recovery restoration actions, or provides data on salmon populations or their habitat conditions. Office – Means the Recreation and Conservation Office or RCO . notice of grant – As required by RCO or another authority , a document that has been legally recorded in the county or counties where the project property is located that describes the grant funded project located on the property, the funding sources, and agencies responsible for awarding the grant. pass-through entity – A non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program (2 C. F. R. § 200.74 (2013)). If this Agreement is a federal subaward , RCO is the pass-through entity. period of performance – The period beginning on the project start date and ending on the project end date. planning – A project that results in one or more of the following : a study, a plan, assessment, project design, inventory, construction plans and specifications, and permits. pre-agreement cost – A project cost incurred before the period of performance . primary Sponsor – The Sponsor who is not a secondary Sponsor and who is specifically identified in the Agreement as the entity to which RCO grants funds to and authorizes and requires to administer the grant. This administration includes but is not limited to acting as the fiscal agent for the grant (e.g. requesting and accepting reimbursements, submitting reports). Primary Sponsor includes its officers , employees, agents and successors. project – An undertaking that is , or may be, funded in whole or in part with funds administered by RCO. project area, (for projects where WAC 286 is applied) – A geographic area that delineates a grant assisted site which is subject to project agreement requirements (WAC 286.04.010). Page 43 of 66RCO Revision Date: USFS Number: Project Number: project area, (for projects where WAC 420 is applied) - The area consistent with the geographic limits of the scope of work of the project and subject to project agreement requirements. For restoration projects, the project area must include the physical limits of the project's final site plans or final design plans. For acquisition projects, the project area must include the area described by the legal description of the properties acquired for or committed to the project (WAC 420.04.010). project end date – The specific date identified in the Agreement on which the period of performance ends, as may be changed by amendment. This date is not the end date for any long-term obligations. project start date – The specific date identified in the Agreement on which the period of performance starts. research project – Means a project that studies salmon and the effectiveness of recovery restoration efforts on the population or habitat condition . RCO – Recreation and Conservation Office – The state agency that awards and /or administers the grant that is the subject of this Agreement . RCO includes the director and staff . reimbursement – RCO’s payment of funds from eligible and allowable costs that have already been paid by the Sponsor per the terms of the Agreement . renovation project – A project intended to improve an existing site or structure in order to increase its useful service life beyond current expectations or functions. This does not include maintenance activities to maintain the facility for its originally expected useful service life. restoration project – A project that brings a site back to its historic function as part of a natural ecosystem or improving the ecological functionality of a site. restoration and enhancement project – A project that brings a site back to its historic function as part of a natural ecosystem or that improves the ecological functionality of a site or a larger ecosystem which improvement may include benefiting fish stocks. RCW – Revised Code of Washington secondary Sponsor – One of two or more Sponsors who is not a primary Sponsor. Only the primary Sponsor may be the fiscal agent for the project. Sponsor – A Sponsor is an organization that is listed in and has signed this Agreement . Sponsor Authorized Representative/Agent – A Sponsor’s agent (employee, political appointee, elected person, etc.) authorized to be the signatory of this Agreement and any amendments requiring a Sponsor signature. This person has the signature authority to bind the Sponsor to this Agreement , grant, and project. subaward – Funds allocated to the RCO from another organization, for which RCO makes available to or assigns to another organization via this Agreement . Also, a subaward may be an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of any award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal or other program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract. Also see 2 C.F.R. § 200.92 (2013). For federal subawards, a subaward is for the purpose of carrying out a portion of a Federal award and creates a federal assistance relationship with the subrecipient (2 C.F.R. § 200.330 (2013)). If this Agreement is a federal subaward , the subaward amount is the grant program amount in Section G: Project Funding. Page 44 of 66RCO Revision Date: USFS Number: Project Number: subrecipient – Subrecipient means an entity that receives a subaward. For non-federal entities receiving federal funds, a subrecipient is an entity that receives a subaward from a pass-through entity to carry out part of a federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency (2 C.F.R. § 200.93 (2013)). If this Agreement is a federal subaward , the Sponsor is the subrecipient. useful service life – Period during which an asset or property is expected to be useable for the purpose it was acquired, developed, renovated, and/or restored per this Agreement . WAC – Washington Administrative Code . PERFORMANCE BY THE SPONSORSECTION 2. The Sponsor shall undertake the project as described in this Agreement , and in accordance with the Sponsor's proposed goals and objectives described in the application or documents submitted with the application, all as finally approved by the RCO. All submitted documents are incorporated by this reference as if fully set forth herein. Timely completion of the project and submission of required documents , including progress and final reports, is important. Failure to meet critical milestones or complete the project, as set out in this Agreement , is a material breach of the Agreement . ASSIGNMENTSECTION 3. Neither this Agreement , nor any claim arising under this Agreement , shall be transferred or assigned by the Sponsor without prior written consent of the RCO. RESPONSIBILITY FOR PROJECTSECTION 4. While RCO administers the grant that is the subject of this Agreement , the project itself remains the sole responsibility of the Sponsor. The RCO and Funding Entity (if different from the RCO) undertakes no responsibilities to the Sponsor, or to any third party, other than as is expressly set out in this Agreement . The responsibility for the implementation of the project is solely that of the Sponsor, as is the responsibility for any claim or suit of any nature by any third party related in any way to the project. When a project is Sponsored by more than one entity, any and all Sponsors are equally responsible for the project and all post-completion stewardship responsibilities and long-term obligations unless otherwise stated in this Agreement . The RCO has no responsibility for reviewing, approving, overseeing or supervising design or construction of the project and leaves such review, approval, oversight and supervision exclusively to the Sponsor and others with expertise or authority. In this respect, the RCO will act only to confirm at a general, lay, and nontechnical level, solely for the purpose of compliance and payment and not for safety or suitability, that the project has apparently been completed as per the Agreement . INDEMNIFICATIONSECTION 5. The Sponsor shall defend, indemnify, and hold the State and its officers and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part from the actual or alleged acts, errors, omissions or negligence in connection with this Agreement (including without limitation all work or activities thereunder), or the breach of any obligation under this Agreement by the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors, or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. Provided that nothing herein shall require a Sponsor to defend or indemnify the State against and hold harmless the State from claims, demands or suits based solely upon the negligence of the State, its employees and/or agents for whom the State is vicariously liable. Page 45 of 66RCO Revision Date: USFS Number: Project Number: Provided further that if the claims or suits are caused by or result from the concurrent negligence of (a) the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor is legally liable, and (b) the State its employees and agents for whom it is vicariously liable, the indemnity obligation shall be valid and enforceable only to the extent of the Sponsor’s negligence or the negligence of the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. This provision shall be included in any agreement between Sponsor and any contractors, subcontractor and vendor, of any tier. The Sponsor shall also defend, indemnify, and hold the State and its officers and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part from the alleged patent or copyright infringement or other allegedly improper appropriation or use of trade secrets, patents, proprietary information, know-how, copyright rights or inventions by the Sponsor or the Sponsor’s agents , employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable, in performance of the work under this Agreement or arising out of any use in connection with the Agreement of methods, processes, designs, information or other items furnished or communicated to the State, its agents, officers and employees pursuant to the Agreement . Provided, this indemnity shall not apply to any alleged patent or copyright infringement or other allegedly improper appropriation or use of trade secrets, patents, proprietary information, know-how, copyright rights or inventions resulting from the State’s , its agents’, officers’ and employees’ failure to comply with specific written instructions regarding use provided to the State, its agents, officers and employees by the Sponsor , its agents, employees, contractors, subcontractors or vendors, of any tier, or any other persons for whom the Sponsor may be legally liable. As part of its obligations provided above, the Sponsor specifically assumes potential liability for actions brought by the Sponsor’s own employees or its agents against the State and , solely for the purpose of this indemnification and defense, the Sponsor specifically waives any immunity under the state industrial insurance law, RCW Title 51. The RCO and Funding Entity are included within the term State, as are all other agencies, departments, boards, councils, committees, divisions, bureaus, offices, societies, or other entities of state government. INDEPENDENT CAPACITY OF THE SPONSORSECTION 6. The Sponsor and its employees or agents performing under this Agreement are not officers , employees or agents of the RCO or Funding Entity. The Sponsor will not hold itself out as nor claim to be an officer , employee or agent of the RCO or the Funding Entity, or of the state of Washington , nor will the Sponsor make any claim of right, privilege or benefit which would accrue to an employee under RCW 41.06. The Sponsor is responsible for withholding and/or paying employment taxes, insurance, or deductions of any kind required by federal, state, and/or local laws. CONFLICT OF INTERESTSECTION 7. Notwithstanding any determination by the Executive Ethics Board or other tribunal, RCO may, in its sole discretion, by written notice to the Sponsor terminate this Agreement if it is found after due notice and examination by RCO that there is a violation of the Ethics in Public Service Act , RCW 42.52; or any similar statute involving the Sponsor in the procurement of, or performance under, this Agreement. In the event this Agreement is terminated as provided herein , RCO shall be entitled to pursue the same remedies against the Sponsor as it could pursue in the event of a breach of the Agreement by the Sponsor . The rights and remedies of RCO provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or this Agreement . COMPLIANCE WITH APPLICABLE LAWSECTION 8. Page 46 of 66RCO Revision Date: USFS Number: Project Number: In implementing the Agreement , the Sponsor shall comply with all applicable federal, state, and local laws (including without limitation all applicable ordinances, codes, rules, and regulations). Such compliance includes, without any limitation as to other applicable laws, the following laws: A.Nondiscrimination Laws. The Sponsor shall comply with all applicable federal, state, and local nondiscrimination laws and/or policies, including but not limited to: the Americans with Disabilities Act ; Civil Rights Act; and the Age Discrimination Act . In the event of the Sponsor’s noncompliance or refusal to comply with any nondiscrimination law or policy, the Agreement may be rescinded , cancelled, or terminated in whole or in part, and the Sponsor may be declared ineligible for further grant awards from the RCO or Funding Entity. The Sponsor is responsible for any and all costs or liability arising from the Sponsor’s failure to so comply with applicable law . B.Secular Use of Funds. No funds awarded under this grant may be used to pay for any religious activities, worship, or instruction, or for lands and facilities for religious activities, worship, or instruction. Religious activities, worship, or instruction may be a minor use of the grant supported recreation and conservation land or facility. C.Wages and Job Safety. The Sponsor agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington or other jurisdiction which affect wages and job safety. The Sponsor agrees when state prevailing wage laws (RCW 39.12) are applicable, to comply with such laws, to pay the prevailing rate of wage to all workers, laborers, or mechanics employed in the performance of any part of this contract, and to file a statement of intent to pay prevailing wage with the Washington State Department of Labor and Industries as required by RCW 39.12.040. The Sponsor also agrees to comply with the provisions of the rules and regulations of the Washington State Department of Labor and Industries . 1.Exception, Service Organizations of Trail and Environmental Projects (RCW 79A.35.130). If allowed by state and federal law and rules, participants in conservation corps programs offered by a nonprofit organization affiliated with a national service organization established under the authority of the national and community service trust act of 1993, P.L. 103-82, are exempt from provisions related to rates of compensation while performing environmental and trail maintenance work provided: (1) The nonprofit organization must be registered as a nonprofit corporation pursuant to RCW 24.03; (2) The nonprofit organization's management and administrative headquarters must be located in Washington ; (3) Participants in the program must spend at least fifteen percent of their time in the program on education and training activities; and (4) Participants in the program must receive a stipend or living allowance as authorized by federal or state law. Participants are exempt from provisions related to rates of compensation only for environmental and trail maintenance work conducted pursuant to the conservation corps program. Page 47 of 66RCO Revision Date: USFS Number: Project Number: D.Archaeological and Cultural Resources. RCO facilitates the review of applicable projects for potential impacts to archaeological sites and state cultural resources. The Sponsor must assist RCO in compliance with Governor’s Executive Order 05-05 or the National Historic Preservation Act before and after initiating ground-disturbing activity or construction, repair, installation, rehabilitation, renovation, or maintenance work on lands, natural resources, or structures. The funding board requires documented compliance with Executive Order 05-05 or Section 106 of the National Historic Preservation Act, whichever is applicable to the project. If a federal agency declines to consult, the Sponsor shall comply with the requirements of Executive Order 05-05. In the event that archaeological or historic materials are discovered during project activities, work in the location of discovery and immediate vicinity must stop instantly, the area must be secured, and notification must be provided to the following: concerned Tribes’ cultural staff and cultural committees , RCO, and the State Department of Archaeology and Historic Preservation . If human remains are discovered during project activity, work in the location of discovery and immediate vicinity must stop instantly, the area must be secured, and notification provided to the concerned Tribe’s cultural staff and cultural committee , RCO, State Department of Archaeology, the coroner and local law enforcement in the most expeditious manner possible according to RCW 68.50. E.Restrictions on Grant Use. No part of any funds provided under this grant shall be used, other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, or for the preparation, distribution, or use of any kit, pamphlet, booklet, publication, radio, television, or video presentation designed to support or defeat legislation pending before the U.S. Congress or any state legislature. No part of any funds provided under this grant shall be used to pay the salary or expenses of any Sponsor, or agent acting for such Sponsor, related to any activity designed to influence legislation or appropriations pending before the U.S. Congress or any state legislature. F.Debarment and Certification. By signing the Agreement with RCO , the Sponsor certifies that neither it nor its principals nor any other lower tier participant are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by Washington State Labor and Industries . Further, the Sponsor agrees not to enter into any arrangements or contracts related to this Agreement with any party that is on Washington State Department of Labor and Industries’ “Debarred Contractor List .” RECORDSSECTION 9. A.Digital Records. If requested by RCO, the Sponsor must provide a digital file(s) of the project property and funded project site in a format specified by the RCO. B.Maintenance. The Sponsor shall maintain books, records, documents, data and other evidence relating to this Agreement and performance of the services described herein , including but not limited to accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Agreement . Sponsor shall retain such records for a period of six years from the date RCO deems the project complete, as defined in Section 11: PROJECT REIMBURSEMENTS. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. In order to satisfy 15 CFR 24.42(b) & (c) For projects that contain Pacific Coast Salmon Recovery Funds or are used as match to Pacific Coast Salmon Recovery Funds the sponsor shall retain records for a period of nine years from the date RCO deems the project complete as defined in Section 11: PROJECT REIMBURSEMENTS. Page 48 of 66RCO Revision Date: USFS Number: Project Number: C.Access to Records and Data. At no additional cost, the records relating to the Agreement , including materials generated under the Agreement , shall be subject at all reasonable times to inspection, review or audit by RCO, personnel duly authorized by RCO, the Office of the State Auditor , and federal and state officials so authorized by law , regulation or agreement. This includes access to all information that supports the costs submitted for payment under the grant and all findings, conclusions, and recommendations of the Sponsor’s reports , including computer models and methodology for those models. D.Public Records. Sponsor acknowledges that the RCO is subject to RCW 42.56 and that this Agreement and any records Sponsor submits or has submitted to the State shall be a public record as defined in RCW 42.56. RCO administers public records requests per WAC 286-06 and 420-04 (which ever applies). Additionally, the Sponsor agrees to disclose any information in regards to the expenditure of that funding as if the project sponsor were subject to the requirements of chapter 42.56 RCW. By submitting any record to the State, Sponsor understands that the State may be requested to disclose or copy that record under the state public records law, currently codified at RCW 42.56. The Sponsor warrants that it possesses such legal rights as are necessary to permit the State to disclose and copy such document to respond to a request under state public records laws. The Sponsor hereby agrees to release the State from any claims arising out of allowing such review or copying pursuant to a public records act request, and to indemnify against any claims arising from allowing such review or copying and pay the reasonable cost of state’s defense of such claims . PROJECT FUNDINGSECTION 10. A.Authority. This Agreement is funded through a grant award from the RCO or Funding Entity (if different than the RCO). B.Additional Amounts. The RCO or Funding Entity shall not be obligated to pay any amount beyond the dollar amount as identified in this Agreement , unless an additional amount has been approved in advance by the RCO director and incorporated by written amendment into this Agreement . C.Before the Agreement. No expenditure made, or obligation incurred, by the Sponsor before the project start date shall be eligible for grant funds, in whole or in part, unless specifically provided for by the RCO director, such as a waiver of retroactivity or program specific eligible pre-Agreement costs. For reimbursements of such costs, this Agreement must be fully executed and an original received by RCO. The dollar amounts identified in this Agreement may be reduced as necessary to exclude any such expenditure from reimbursement. D.Requirements for Federal Subawards. Pre-Agreement costs before the federal award date in Section H: FEDERAL FUND INFORMATION are ineligible unless approved by the federal award agency (2 C.F.R § 200.458 (2013)). E.After the Period of Performance. No expenditure made, or obligation incurred, following the period of performance shall be eligible, in whole or in part, for grant funds hereunder. In addition to any remedy the RCO may have under this Agreement , the grant amounts identified in this Agreement shall be reduced to exclude any such expenditure from participation. PROJECT REIMBURSEMENTSSECTION 11. Page 49 of 66RCO Revision Date: USFS Number: Project Number: A.Reimbursement Basis. This Agreement is administered on a reimbursement basis per WAC 286-13 and/or 420-12, which ever has been designated to apply. Only the primary Sponsor may request reimbursement for eligible and allowable costs incurred during the period of performance. The primary Sponsor may only request reimbursement after (1) this Agreement has been fully executed and (2) the Sponsor has remitted payment to its vendors. RCO will authorize disbursement of project funds only on a reimbursable basis at the percentage as defined in Section G: PROJECT FUNDING. Reimbursement shall not be approved for any expenditure not incurred by the Sponsor or for a donation used as part of its matching share. RCO does not reimburse for donations. All reimbursement requests must include proper documentation of expenditures as required by RCO. B.Reimbursement Request Frequency. The primary Sponsor is required to submit a reimbursement request to RCO, at a minimum for each project at least once a year for reimbursable activities occurring between July 1 and June 30 or as identified in the milestones. Sponsors must refer to the most recent applicable RCO manuals and this Agreement regarding reimbursement requirements . C.Compliance and Payment. The obligation of RCO to pay any amount(s) under this Agreement is expressly conditioned on strict compliance with the terms of this Agreement and other agreements between RCO and the Sponsor. D.Retainage Held Until Project Complete. RCO reserves the right to withhold disbursement of the total amount of the grant to the Sponsor until the project has been completed. A project is considered "complete" when: 1.All approved or required activities outlined in the Agreement are done ; 2.On-site signs are in place (if applicable); 3.A final project report is submitted to and accepted by RCO ; 4.Any other required documents and media are complete and submitted to RCO; 5.A final reimbursement request is submitted to RCO ; 6.The completed project has been accepted by RCO; 7.Final amendments have been processed; 8.Fiscal transactions are complete, and 9.RCO has accepted a final boundary map, if requested by RCO, for which the Agreement terms will apply in the future. 10.Notice of Grant (if applicable) filed with the county lands records office and a stamped copy received by RCO E.Requirements for Federal Subawards: Match. The Sponsor’s matching share must comply with 2 C.F.R. § 200.306 (2013). Any shared costs or matching funds and all contributions, including cash and third party in-kind contributions, can be accepted as part of the Sponsor’s matching share when such contributions meet all of the following criteria: 1.Are verifiable from the non-Federal entity's (Sponsor’s) records; 2.Are not included as contributions for any other Federal award; 3.Are necessary and reasonable for accomplishment of project or program objectives; Page 50 of 66RCO Revision Date: USFS Number: Project Number: 4.Are allowable under 2 C.F.R. Part 200, Subpart E—Cost Principles (2013); 5.Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs; 6.Are provided for in the approved budget when required by the Federal awarding agency identified in Section H: FEDERAL FUND INFORMATION of this Agreement; and 7.Conform to other provisions of 2 C.F.R. Part 200, Subpart D—Post Federal Award Requirements (2013), as applicable. F.Requirements for Federal Subawards: Close out. Per 2 C.F.R § 200.343 (2013), the non-Federal entity (Sponsor) must: 1.Submit, no later than 90 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. The Federal awarding agency or pass-through entity (RCO) may approve extensions when requested by the Sponsor. 2.Liquidate all obligations incurred under the Federal award not later than 90 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. 3.Refund any balances of unobligated cash that the Federal awarding agency or pass-through entity (RCO) paid in advance or paid and that are not authorized to be retained by the non-Federal entity (Sponsor) for use in other projects. See OMB Circular A-129 and see 2 C.F.R § 200.345 Collection of amounts due (2013), for requirements regarding unreturned amounts that become delinquent debts. 4.Account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with 2 C.F.R §§ 200.310 Insurance coverage through 200.316 Property rust relationship and 200.329 Reporting on real property (2013). ADVANCE PAYMENTSSECTION 12. Advance payments of or in anticipation of goods or services are not allowed unless approved by the RCO director and are consistent with legal requirements and Manual 8: Reimbursements. RECOVERY OF PAYMENTSSECTION 13. A.Recovery for Noncompliance. In the event that the Sponsor fails to expend funds under this Agreement in accordance with state and federal laws, and/or the provisions of the Agreement , or meet its percentage of the project total, RCO reserves the right to recover grant award funds in the amount equivalent to the extent of noncompliance in addition to any other remedies available at law or in equity. B.Overpayment Payments. The Sponsor shall reimburse RCO for any overpayment or erroneous payments made under the Agreement . Repayment by the Sponsor of such funds under this recovery provision shall occur within 30 days of demand by RCO. Interest shall accrue at the rate of twelve percent (12%) per annum from the time that payment becomes due and owing. Page 51 of 66RCO Revision Date: USFS Number: Project Number: C.Requirements for Federal Subawards. RCO, acting as a pass-through entity, may impose any of the remedies as authorized in 2 C.F.R §§ 200.207 Specific conditions and/or 200.338 Remedies for noncompliance (2013). COVENANT AGAINST CONTINGENT FEESSECTION 14. The Sponsor warrants that no person or selling agent has been employed or retained to solicit or secure this Agreement on an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established agents maintained by the Sponsor for the purpose of securing business. RCO shall have the right, in the event of breach of this clause by the Sponsor, to terminate this Agreement without liability or , in its discretion, to deduct from the Agreement grant amount or consideration or recover by other means the full amount of such commission, percentage, brokerage or contingent fee. INCOME (AND FEES) AND USE OF INCOMESECTION 15. A.Income. Compatible source. The source of any income generated in a funded project or project area must be compatible with the funding source and the Agreement and any applicable manuals , RCWs, and WACs. B.Use of Income. Subject to any limitations contained in applicable state or federal law and applicable rules and policies, income or fees generated at a project work site (including entrance, utility corridor permit, cattle grazing, timber harvesting, farming, etc.) during or after the reimbursement period cited in the Agreement, must be used to offset : 1.The Sponsor’s matching resources ; 2.The project’s total cost; 3.The expense of operation, maintenance, stewardship, monitoring, and/or repair of the facility or program assisted by the grant funding; 4.The expense of operation, maintenance, stewardship, monitoring, and/or repair of other similar units in the Sponsor’s system ; 5.Capital expenses for similar acquisition and/or development and renovation; and/or 6.Other purposes explicitly approved by RCO C.Fees. User and/or other fees may be charged in connection with land acquired or facilities developed, maintained, renovated, or restored and shall be consistent with the: 1.Grant program laws, rules, and applicable manuals; 2.Value of any service(s) furnished; 3.Value of any opportunities furnished ; and 4.Prevailing range of public fees in the state for the activity involved. D.Requirements for Federal Subawards. Sponsors must also comply with 2 C.F.R. § 200.307 Program income (2013). PROCUREMENT REQUIREMENTSSECTION 16. Page 52 of 66RCO Revision Date: USFS Number: Project Number: A.Procurement Requirements. If the Sponsor has, or is required to have, a procurement process that follows applicable state and/or federal law or procurement rules and principles, it must be followed, documented, and retained. If no such process exists the Sponsor must follow these minimum procedures: 1.Publish a notice to the public requesting bids/proposals for the project; 2.Specify in the notice the date for submittal of bids/proposals; 3.Specify in the notice the general procedure and criteria for selection; and 4.Sponsor must contract or hire from within its bid pool. If bids are unacceptable the process needs to be repeated until a suitable bid is selected. 5.Comply with the same legal standards regarding unlawful discrimination based upon race, gender, ethnicity, sex, or sex-orientation that are applicable to state agencies in selecting a bidder or proposer. Alternatively, Sponsor may choose a bid from a bidding cooperative if authorized to do so. This procedure creates no rights for the benefit of third parties, including any proposers, and may not be enforced or subject to review of any kind or manner by any entity other than the RCO. Sponsors may be required to certify to the RCO that they have followed any applicable state and/or federal procedures or the above minimum procedure where state or federal procedures do not apply. B.Requirements for Federal Subawards. 1.For all Federal subawards, non-Federal entities (Sponsors) must follow 2 C.F.R §§ 200.318 General procurement standards through 200.326 Contract Provisions (2013). TREATMENT OF EQUIPMENT AND ASSETSSECTION 17. Equipment shall be used and managed only for the purpose of this Agreement , unless otherwise provided herein or in the applicable manuals, or approved by RCO in writing. A.Discontinued Use. Equipment obtained under this Agreement shall remain in the possession of the Sponsor for the duration of the project, or RULES of applicable grant assisted program. When the Sponsor discontinues use of the equipment for the purpose for which it was funded, RCO may require the Sponsor to deliver the equipment to RCO, or to dispose of the equipment according to RCO published policies. B.Loss or Damage. The Sponsor shall be responsible for any loss or damage to equipment. C.Requirements for Federal Subawards. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award or match for the award, until disposition takes place will, at a minimum, meet the following requirements (2 C.F.R § 200.313 (2013)): 1.Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Page 53 of 66RCO Revision Date: USFS Number: Project Number: 2.A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. 3.A control system must be developed to ensure adequate safeguards to prevent loss , damage, or theft of the property. Any loss, damage, or theft must be investigated. 4.Adequate maintenance procedures must be developed to keep the property in good condition. 5.If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. RIGHT OF INSPECTIONSECTION 18. The Sponsor shall provide right of access to the project to RCO, or any of its officers , or to any other authorized agent or official of the state of Washington or the federal government , at all reasonable times, in order to monitor and evaluate performance, long-term obligations, compliance, and/or quality assurance under this Agreement. If a landowner agreement or other form of control and tenure as described in Section 23.C: Control and Tenure has been executed , it will further stipulate and define the RCO’s right to inspect and access lands acquired or developed with this funding assistance. STEWARDSHIP AND MONITORINGSECTION 19. Sponsor agrees to perform monitoring and stewardship functions as stated in the applicable WACs and manuals, this Agreement, or as otherwise directed by RCO consistent with the existing laws and applicable manuals. Sponsor further agrees to utilize, where applicable and financially feasible, any monitoring protocols recommended by the RCO; provided that RCO does not represent that any monitoring it may recommend will be adequate to reasonably assure project performance or safety. It is the sole responsibility of the Sponsor to perform such additional monitoring as may be adequate for such purposes. PREFERENCES FOR RESIDENTSSECTION 20. Sponsors shall not express a preference for users of grant assisted projects on the basis of residence (including preferential reservation, membership, and/or permit systems) except that reasonable differences in admission and other fees may be maintained on the basis of residence. Fees for nonresidents must not exceed twice the fee imposed on residents. Where there is no fee for residents but a fee is charged to nonresidents, the nonresident fee shall not exceed the amount that would be imposed on residents at comparable state or local public facilities. ACKNOWLEDGMENT AND SIGNSSECTION 21. A.Publications. The Sponsor shall include language which acknowledges the funding contribution of the applicable grant program to this project in any release or other publication developed or modified for, or referring to, the project during the project period and in the future. B.Signs. 1.During the period of performance through the period of long-term obligation, the Sponsor shall post openly visible signs or other appropriate media at entrances and other locations on the project area that acknowledge the applicable grant program's funding contribution, unless waived by the director; and Page 54 of 66RCO Revision Date: USFS Number: Project Number: 2.During the period of long-term obligation, the Sponsor shall post openly visible signs or other appropriate media at entrances and other locations to notify the public of the availability of the site for reasonable public access. C.Ceremonies. The Sponsor shall notify RCO no later than two weeks before a dedication ceremony for this project. The Sponsor shall verbally acknowledge the applicable grant program’s funding contribution at all dedication ceremonies. D.Federally Funded Projects. When issuing statements, press releases, requests for proposals, bid solicitations, and other documents describing a project funded in whole or in part with federal money provided for in this grant, Sponsors shall clearly state: 1.The fund source; 2.The percentage of the total costs of the project that is financed with federal money; 3.The dollar amount of federal funds for the project; and 4.The percentage and dollar amount of the total costs of the project that is financed by nongovernmental sources. PROVISIONS FOR BOATING PROJECT GRANTSSECTION 22. If requested by RCO, or required per state or federal law or rule with respect to any project or project element that supports recreational boating, Sponsor shall manage the project or project element per federal rules to include 2 C.F.R. Part 200, and place a United States Coast Guard (or other federal agency) logo and funding program information at the project site. PROVISIONS APPLYING TO DEVELOPMENT, MAINTENANCE, RENOVATION, AND RESTORATION PROJECTS SECTION 23. The following provisions shall be in force only if the project described in this Agreement is for construction of land or facilities in a development, maintenance, renovation or restoration project: A.Operations and Maintenance. Properties, structures, and facilities developed, maintained, or operated with the assistance of money granted per this Agreement Entity and within the project area shall be built, operated, and maintained according to applicable regulations, laws, building codes, and health and public safety standards to assure a reasonably safe condition and to prevent premature deterioration. It is the Sponsor’s sole responsibility to ensure the same are operated and maintained in a safe and operable condition. The RCO does not conduct safety inspections or employ or train staff for that purpose. B.Document Review and Approval. Prior to commencing construction or finalizing the design, the Sponsor agrees to submit one copy of all construction and restoration plans and specifications to RCO for review solely for compliance with the scope of work to be identified in the Agreement . RCO does not review for, and disclaims any responsibility to review for safety, suitability, engineering, compliance with code, or any matters other than the scope so identified. Although RCO staff may provide tentative guidance to a Sponsor on matters related to site accessibility by persons with a disability, it is the Sponsor’s responsibility to confirm that all legal requirements for accessibility are met even if the RCO guidance would not meet such requirements. 1.Change orders that impact the amount of funding or changes to the scope of the project as described to and approved by the RCO must receive prior written approval of the RCO. Page 55 of 66RCO Revision Date: USFS Number: Project Number: C.Control and Tenure. The Sponsor must provide documentation that shows appropriate tenure (such as landowner agreement, long-term lease, easement, or fee simple ownership) for the land proposed for construction. The documentation must meet current RCO requirements identified in this Agreement and any applicable manual as of the effective date of this Agreement and determines the long -term compliance period unless otherwise provided in any applicable manual, RCW, WAC, or as approved by the RCO. D.Nondiscrimination. Except where a nondiscrimination clause required by a federal funding agency is used, the Sponsor shall insert the following nondiscrimination clause in each contract for construction of this project: "During the performance of this contract, the contractor agrees to comply with all federal and state nondiscrimination laws, regulations and policies." E.Use of Best Management Practices. Sponsors are encouraged to use best management practices including those developed as part of the Washington State Aquatic Habitat Guidelines (AHG) Program. AHG documents include “Integrated Streambank Protection Guidelines”, 2002; “Land Use Planning for Salmon, Steelhead and Trout: A land use planner’s guide to salmonid habitat protection and recovery”, 2009”, “Protecting Nearshore Habitat and Functions in Puget Sound”, 2010; “Stream Habitat Restoration Guidelines”, 2012; “Water Crossing Design Guidelines”, 2013; and “Marine Shoreline Design Guidelines”, 2014. These documents, along with new and updated guidance documents, and other information are available on the AHG Web site . Sponsors are also encouraged to use best management practices developed by the Washington Invasive Species Council (WISC) described in “Reducing Accidental Introductions of Invasive Species” which is available on the WISC Web site. PROVISIONS APPLYING TO ACQUISITION PROJECTSSECTION 24. The following provisions shall be in force only if the project described in this Agreement is an acquisition project (including projects with any acquisition component): A.Evidence of Land Value. Before disbursement of funds by RCO as provided under this Agreement , the Sponsor agrees to supply documentation acceptable to RCO that the cost of the property rights acquired has been established according to all applicable manuals and RCWs or WACs . B.Evidence of Title. The Sponsor agrees to provide documentation that shows the type of ownership interest for the property that has been acquired. This shall be done before any payment of financial assistance. C.Legal Description of Real Property Rights Acquired. The legal description of the real property rights purchased with funding assistance provided through this Agreement (and protected by a recorded conveyance of rights to the State of Washington ) shall be delivered to RCO before final payment. D.Conveyance of Rights to the State of Washington. When real property rights (both fee simple and lesser interests) are acquired, the Sponsor agrees to execute an appropriate document (provided or approved by RCO) conveying certain rights and responsibilities to RCO or the Funding Entity on behalf of the State of Washington or another agency of the state , or federal agency, or other organization. These documents include a Deed of Right, Assignment of Rights, Easements and/or Leases as described below. The Sponsor agrees to use document language provided by RCO, to record the executed document in the County where the real property lies, and to provide a copy of the recorded document to RCO. The document required will vary depending on the project type, the real property rights being acquired and whether or not those rights are being acquired in perpetuity. Page 56 of 66RCO Revision Date: USFS Number: Project Number: 1.Deed of Right. The Deed of Right as described in RCO Manual #3 conveys to the people of the state of Washington the right to preserve , protect, access, and/or use the property for public purposes consistent with the funding source and project agreement. Sponsors shall use this document when acquiring real property rights that include the underlying land. This document may also be applicable for those easements where the Sponsor has acquired a perpetual easement for public purposes. 2.Assignment of Rights. The Assignment of Rights as described in RCO Manual #3 document transfers certain rights to RCO and the state such as public access, access for compliance, and enforcement. Sponsors shall use this document when an easement or lease is being acquired under this Agreement . The Assignment of Rights requires the signature of the underlying landowner and must be incorporated by reference in the easement document. 3.Easements and Leases. The Sponsor may incorporate required language from the Deed of Right or Assignment of Rights directly into the easement or lease document , thereby eliminating the requirement for a separate document. Language will depend on the situation; Sponsor must obtain RCO approval on the draft language prior to executing the easement or lease. E.Real Property Acquisition and Relocation Assistance In the event that housing and relocation costs and procedures are required by local, state, tribal, or federal law, or rule; the Sponsor agrees to provide such housing and relocation assistance as a condition of the Agreement and receiving grant funds. F.Buildings and Structures. In general, grant funds are to be used for outdoor recreation, conservation, or salmon recovery. Sponsors agree to remove or demolish ineligible structures. Sponsor must consult with RCO regarding treatment of such structures and compliance with Section 8.D Archeological and Cultural Resources . G.Hazardous Substances. 1.Certification. The Sponsor shall inspect, investigate, and conduct an environmental audit of the proposed acquisition site for the presence of hazardous substances, as defined in RCW 70.105D.020(13), and certify: a.No hazardous substances were found on the site, or b.Any hazardous substances found have been treated and/or disposed of in compliance with applicable state and federal laws, and the site deemed “clean.” 2.Responsibility. Nothing in this provision alters the Sponsor's duties and liabilities regarding hazardous substances as set forth in RCW 70.105D. 3.Hold Harmless. The Sponsor will defend, protect and hold harmless the State and any and all of its employees and/or agents, from and against any and all liability, cost (including but not limited to all costs of defense and attorneys' fees) and any and all loss of any nature from any and all claims or suits resulting from the presence of, or the release or threatened release of, hazardous substances on the property the Sponsor is acquiring, except to the extent, if any, that the State, its officers and agents caused or contributed to the release . The funding boards and RCO are included within the term State, as are all other agencies, departments, boards, councils, committees, divisions, bureaus, offices, societies, or other entities of state government. Page 57 of 66RCO Revision Date: USFS Number: Project Number: H.Requirements for Federal Subawards. The non-federal entity (Sponsor) must submit reports at least annually on the status of real property in which the federal government retains an interest, unless the federal interest in the real property extends 15 years or longer. In those instances where the federal interest attached is for a period of 15 years or more, the federal awarding agency or the pass-through entity (RCO), at its option, may require the Sponsor to report at various multi-year frequencies (e.g., every two years or every three years, not to exceed a five-year reporting period; or a federal awarding agency or RCO may require annual reporting for the first three years of a federal award and thereafter require reporting every five years) (2 C.F.R § 200.329 (2013)). LONG-TERM OBLIGATIONS OF THE PROJECTS AND SPONSORSSECTION 25. A.Long-Term Obligations. Sponsor shall comply with the terms of this Agreement . B.Perpetuity. For acquisition, development, and restoration projects, or a combination thereof, unless otherwise allowed by applicable manual, policy, program rules, or this Agreement, or approved in writing by RCO. RCO requires that the project area continue to function as intended after the period of performance in perpetuity. C.Conversion. The Sponsor shall not at any time convert any real property (including any interest therein) or facility acquired, developed, renovated, and/ or restored pursuant to this Agreement , unless provided for in applicable statutes, rules, and policies. Conversion includes, but is not limited to, putting such property to uses other than those purposes for which funds were approved or transferring such property to another entity without prior approval via a written amendment to the Agreement . All real property or facilities acquired, developed, renovated, and/or restored with funding assistance shall remain in the same ownership and in public use/access status in perpetuity unless otherwise expressly provided in the Agreement or applicable policy or unless a transfer or change in use is approved by the RCO through an amendment. Failure to comply with these obligations is a conversion. Further, if the project is subject to operation and or maintenance obligations, the failure to comply with such obligations, without cure after a reasonable period as determined by the RCO, is a conversion. Determination of whether a conversion has occurred shall be based upon the terms of this Agreement, including without limitation all WACs and manuals deemed applicable and all applicable laws. For acquisition projects that are expressly term limited in the Agreement , such as one involving a lease or a term-limited restoration, renovation or development project or easement, the restriction on conversion shall apply only for the length of the term, unless otherwise provided by this Agreement , any applicable manual or WAC , or any applicable state or federal law. When a conversion has been determined to have occurred, the Sponsor is required to remedy the conversion per this Agreement and the applicable manuals , WACs and laws, and the RCO may pursue such remedies as the above allows. CONSTRUCTION, OPERATION, USE AND MAINTENANCE OF ASSISTED PROJECTSSECTION 26. The following provisions shall be in force only if the project described in this Agreement is an acquisition , development, maintenance, renovation, or restoration project: A.Property and facility operation and maintenance. Sponsor must ensure that properties or facilities assisted with the grant funds, including undeveloped sites, are built, operated, used, and maintained: 1.According to applicable federal, state, and local laws and regulations, including public health standards and building codes; 2.In a reasonably safe condition for the project’s intended use ; Page 58 of 66RCO Revision Date: USFS Number: Project Number: 3.Throughout its estimated useful service life so as to prevent undue deterioration; 4.In compliance with all federal and state nondiscrimination laws, regulations and policies. B.Open to the public. Unless otherwise specifically provided for in the Agreement , and in compliance with applicable statutes, rules, and applicable WACs and manuals , facilities must be open and accessible to the general public, and must: 1.Be constructed, maintained, and operated to meet or exceed the minimum requirements of the most current guidelines or rules, local or state codes, Uniform Federal Accessibility Standards , guidelines, or rules, including but not limited to: the International Building Code, the Americans with Disabilities Act, and the Architectural Barriers Act , as amended and updated. 2.Appear attractive and inviting to the public except for brief installation, construction, or maintenance periods. 3.Be available for appropriate use by the general public at reasonable hours and times of the year, according to the type of area or facility, unless otherwise stated in RCO manuals, by a decision of the RCO director in writing. Sponsor shall notify the public of the availability for use by posting and updating that information on its website and by maintaining at entrances and/or other locations openly visible signs with such information. RECORDED NOTICE OF GRANTSECTION 27. At the request of RCO, Sponsor shall record a notice of grant on the property and shall submit to the RCO a recorded and registry stamped copy of such notice. The purpose of the notice of grant is to ensure that the present and future use of the facility is and shall remain subject to the terms and conditions described in this Agreement. The notice of grant shall be in a format specified by RCO. PROVISIONS RELATED TO CORPORATE (INCLUDING NONPROFIT) SPONSORSSECTION 28. A corporate Sponsor , including any nonprofit Sponsor, shall: A.Maintain corporate status with the state, including registering with the Washington Secretary of State’s office, throughout the Sponsor’s obligation to the project as identified in the Agreement . B.Notify RCO before corporate dissolution at any time during the period of performance or long-term obligations. Within 30 days of dissolution the Sponsor shall name a qualified successor that will agree in writing to assume any on-going project responsibilities, and transfer all property and assets to the successor. A qualified successor is any party eligible to apply for funds in the subject grant program and capable of complying with the terms and conditions of this Agreement . RCO will process an amendment transferring the Sponsor’s obligation to the qualified successor if requirements are met . C.Maintain sites or facilities open to the public and may not limit access to members. PROVISIONS FOR FEDERAL SUBAWARDS ONLYSECTION 29. The following provisions shall be in force only if the project described in this Agreement is funded with a federal subaward as identified in Section H: FEDERAL FUND Information: A.Sub-Recipient (Sponsor) must comply with the cost principles of 2 C.F.R. Part 200 Subpart E (2013). Unless otherwise indicated, the cost principles apply to the use of funds provided under this Agreement to include match and any in-kind matching donations. The applicability of the cost principles depends on the type of organization incurring the costs. Page 59 of 66RCO Revision Date: USFS Number: Project Number: B.Binding Official. Per 2 CFR 200.415, Sponsor certifies through its actions or those of authorized staff, at the time of a request for reimbursement, the following: “To the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).” C.Equal Employment Opportunity. Except as otherwise provided under 41 C.F.R. Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-1.3 must include the equal opportunity clause provided under 41 C.F.R. § 60- 1.4(b), in accordance with Executive Order 11246, Equal Employment Opportunity (30 Fed. Reg. 12319, 12935, 3 C.F.R. Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, Amending Executive Order 11246 Relating to Equal Employment Opportunity, and implementing regulations at 41 C.F.R. Part 60 (Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor). See 2 C.F.R. Part 200, Appendix II, paragraph C. 1.Federally Assisted Construction Contract. The regulation at 41 C.F.R. § 60-1.3 defines a “federally assisted construction contract” as any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work. 2.Construction Work. The regulation at 41 C.F.R. § 60-1.3 defines “construction work” as the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction. D.Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-federal entities (Sponsors) must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity (Sponsor) must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity (Sponsor) must report all suspected or reported violations to the federal awarding agency identified in Section H: Federal Fund Information. Page 60 of 66RCO Revision Date: USFS Number: Project Number: The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U. S. C. 3145), as supplemented by Department of Labor regulations (29 C.F.R Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient (Sponsor) must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity (Sponsor) must report all suspected or reported violations to the Federal awarding agency identified in Section H: Federal Fund Information. E.Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-federal entity (Sponsor) in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. F.Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 C.F.R § 401.2(a) and the recipient or subrecipient (Sponsor) wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient (Sponsor) must comply with the requirements of 37 C.F.R Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements ,” and any implementing regulations issued by the awarding agency. G.Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as Amended. Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency identified in Section H: Federal Fund Information and the Regional Office of the Environmental Protection Agency (EPA). Page 61 of 66RCO Revision Date: USFS Number: Project Number: H.Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). By signing this Agreement, the Sponsor certifies (per the certification requirements of 31 U.S.C.) that none of the funds that the Sponsor has (directly or indirectly) received or will receive for this project from the United States or any agency thereof, have been used or shall be used to engage in the lobbying of the Federal Government or in litigation against the United States. Such lobbying includes any influence or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress , or an employee of a Member of Congress in connection with this project. Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency , a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. I.Procurement of Recovered Materials. A non-federal entity (Sponsor) that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act . The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines . J.Required Insurance. The non-federal entity (Sponsor) must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with federal funds as provided to property owned by the non-federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award (2 C.F.R § 200.310 (2013)). K.Debarment and Suspension (Executive Orders 12549 and 12689). The Sponsor must not award a contract to parties listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the Office of Management and Budget (OMB) guidelines at 2 C.F.R § 180 that implement Executive Orders 12549 (3 C.F.R part 1986 Comp., p. 189) and 12689 (3 C.F.R part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. L.Conflict of Interest. Sponsor agrees to abide by the conflict of interest policy and requirements of the federal funding agency established pursuant to 2 C.F.R 200. ORDER OF PRECEDENCESECTION 30. This Agreement is entered into , pursuant to, and under the authority granted by applicable federal and state laws. The provisions of the Agreement shall be construed to conform to those laws . In the event of a direct and irreconcilable conflict between the terms of this Agreement and any applicable statute , rule, or policy or procedure, the conflict shall be resolved by giving precedence in the following order: 1.Federal law and binding executive orders; 2.Code of federal regulations; 3.Terms and conditions of a grant award to the state from the federal government ; Page 62 of 66RCO Revision Date: USFS Number: Project Number: 4.Federal grant program policies and procedures adopted by a federal agency that are required to be applied by federal law; 5.State law (constitution, statute); 6.Washington Administrative Code as a may be applicable ; 7.Applicable RCO manuals. LIMITATION OF AUTHORITYSECTION 31. Only RCO’s Director or RCO’s delegate by writing (delegation to be made prior to action) shall have the authority to alter, amend, modify, or waive any clause or condition of this Agreement ; provided that any such alteration, amendment, modification, or waiver of any clause or condition of this Agreement is not effective or binding unless made as a written amendment to this Agreement and signed by the RCO Director or delegate . WAIVER OF DEFAULTSECTION 32. Waiver of any default shall not be deemed to be a waiver of any subsequent default . Waiver or breach of any provision of the Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of the Agreement unless stated to be such in writing , signed by the director, or the director’s designee , and attached as an amendment to the original Agreement . APPLICATION REPRESENTATIONS – MISREPRESENTATIONS OR INACCURACY OR BREACH SECTION 33. The Funding Entity (if different from RCO) and RCO relies on the Sponsor’s application in making its determinations as to eligibility for, selection for, and scope of, funding grants. Any misrepresentation, error or inaccuracy in any part of the application may be deemed a breach of this Agreement . SPECIFIC PERFORMANCESECTION 34. RCO may enforce this Agreement by the remedy of specific performance , which usually will mean completion of the project as described in this Agreement and /or enforcement of long-term obligations. However, the remedy of specific performance shall not be the sole or exclusive remedy available to RCO. No remedy available to the RCO shall be deemed exclusive. The RCO may elect to exercise any, a combination of, or all of the remedies available to it under this Agreement , or under any provision of law, common law, or equity, including but not limited to seeking full or partial repayment of the grant amount paid and damages. TERMINATION AND SUSPENSIONSECTION 35. The RCO will require strict compliance by the Sponsor with all the terms of this Agreement including , but not limited to, the requirements of the applicable statutes, rules, and RCO policies, and with the representations of the Sponsor in its application for a grant as finally approved by RCO. For federal awards, notification of termination will comply with 2 C.F.R. § 200.340. A.For Cause. 1.The RCO director may suspend or terminate the obligation to provide funding to the Sponsor under this Agreement: a.If the Sponsor breaches any of the Sponsor's obligations under this Agreement ; b.If the Sponsor fails to make progress satisfactory to the RCO director toward completion of the project by the completion date set out in this Agreement . Included in progress is adherence to milestones and other defined deadlines; or Page 63 of 66RCO Revision Date: USFS Number: Project Number: c.If the primary and secondary Sponsor(s) cannot mutually agree on the process and actions needed to implement the project; 2.Prior to termination, the RCO shall notify the Sponsor in writing of the opportunity to cure. If corrective action is not taken within 30 days or such other time period that the director approves in writing, the Agreement may be terminated . In the event of termination, the Sponsor shall be liable for damages or other relief as authorized by law and/or this Agreement. 3.RCO reserves the right to suspend all or part of the Agreement , withhold further payments, or prohibit the Sponsor from incurring additional obligations of funds during the investigation of any alleged breach and pending corrective action by the Sponsor, or a decision by the RCO to terminate the Contract. B.For Convenience. Except as otherwise provided in this Agreement , RCO may, by ten (10) days written notice, beginning on the second day after the mailing, terminate this Agreement , in whole or in part when it is in the best interest of the state. If this Agreement is so terminated , RCO shall be liable only for payment required under the terms of this Agreement prior to the effective date of termination . A claimed termination for cause shall be deemed to be a "Termination for Convenience" if it is determined that: 1.The Sponsor was not in default; or 2.Failure to perform was outside Sponsor’s control , fault or negligence. C.Rights of Remedies of the RCO. 1.The rights and remedies of RCO provided in this Agreement are not exclusive and are in addition to any other rights and remedies provided by law. 2.In the event this Agreement is terminated by the director , after any portion of the grant amount has been paid to the Sponsor under this Agreement , the director may require that any amount paid be repaid to RCO for redeposit into the account from which the funds were derived. However, any repayment shall be limited to the extent it would be inequitable and represent a manifest injustice in circumstances where the project will fulfill its fundamental purpose for substantially the entire period of performance and of long-term obligation. D.Non Availability of Funds. The obligation of the RCO to make payments is contingent on the availability of state and federal funds through legislative appropriation and state allotment. If amounts sufficient to fund the grant made under this Agreement are not appropriated to RCO for expenditure for this Agreement in any biennial fiscal period , RCO shall not be obligated to pay any remaining unpaid portion of this grant unless and until the necessary action by the Legislature or the Office of Financial Management occurs. If RCO participation is suspended under this section for a continuous period of one year, RCO’s obligation to provide any future funding under this Agreement shall terminate. Termination of the Agreement under this section is not subject to appeal by the Sponsor . 1.Suspension: The obligation of the RCO to manage contract terms and make payments is contingent upon the state appropriating state and federal funding each biennium. In the event the state is unable to appropriate such funds by the first day of each new biennium RCO reserves the right to suspend the Agreement , with ten (10) days written notice, until such time funds are appropriated. Suspension will mean all work related to the contract must cease until such time funds are obligated to RCO and the RCO provides notice to continue work. DISPUTE HEARINGSECTION 36. Page 64 of 66RCO Revision Date: USFS Number: Project Number: Except as may otherwise be provided in this Agreement , when a dispute arises between the Sponsor and the RCO, which cannot be resolved, either party may request a dispute hearing according to the process set out in this section. Either party’s request for a dispute hearing must be in writing and clearly state : A.The disputed issues; B.The relative positions of the parties; C.The Sponsor’s name, address, project title, and the assigned project number. In order for this section to apply to the resolution of any specific dispute or disputes, the other party must agree in writing that the procedure under this section shall be used to resolve those specific issues. The dispute shall be heard by a panel of three persons consisting of one person chosen by the Sponsor, one person chosen by the director, and a third person chosen by the two persons initially appointed. If a third person cannot be agreed on, the persons chosen by the Sponsor and director shall be dismissed and an alternate person chosen by the Sponsor, and one by the director shall be appointed and they shall agree on a third person. This process shall be repeated until a three person panel is established. Any hearing under this section shall be informal, with the specific processes to be determined by the disputes panel according to the nature and complexity of the issues involved. The process may be solely based on written material if the parties so agree. The disputes panel shall be governed by the provisions of this Agreement in deciding the disputes . The parties shall be bound by the decision of the disputes panel, unless the remedy directed by that panel shall be without the authority of either or both parties to perform, as necessary, or is otherwise unlawful. Request for a disputes hearing under this section by either party shall be delivered or mailed to the other party. The request shall be delivered or mailed within thirty (30) days of the date the requesting party has received notice of the action or position of the other party which it wishes to dispute. The written agreement to use the process under this section for resolution of those issues shall be delivered or mailed by the receiving party to the requesting party within thirty (30) days of receipt by the receiving party of the request. All costs associated with the implementation of this process shall be shared equally by the parties. ATTORNEYS’ FEESSECTION 37. In the event of litigation or other action brought to enforce contract terms, each party agrees to bear its own attorney fees and costs. GOVERNING LAW/VENUESECTION 38. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington . In the event of a lawsuit involving this Agreement , venue shall be in Thurston County Superior Court if legally proper; otherwise venue shall be in a county where the project is situated, if venue there is legally proper, and if not, in a county where venue is legally proper. The Sponsor, by execution of this Agreement acknowledges the jurisdiction of the courts of the State of Washington . PROVISIONS APPLICABLE ONLY IF FEDERALLY RECOGNIZED INDIAN TRIBE IS THE SPONSOR SECTION 39. In the cases where this Agreement is between the RCO and a federally recognized Indian Tribe , the following terms and conditions apply, but only between those parties: Page 65 of 66RCO Revision Date: USFS Number: Project Number: A.Notwithstanding the above venue provision, if the State of Washington intends to initiate legal action against a federally recognized Indian tribe relating to the performance, breach, or enforcement of this Agreement, it shall so notify the Tribe . If the Tribe believes that a good faith basis exists for subject matter jurisdiction of such an action in federal court, the Tribe shall so notify the State within five days of receipt of such notice and state the basis for such jurisdiction. If the Tribe so notifies the State , the State shall bring such action in federal court, otherwise the State may sue the Tribe in the Thurston County Superior Court, or such other superior court where venue is proper, if not proper in Thurston County. Interpretation of the Agreement shall be according to applicable State law , except to the extent preempted by federal law. In the event suit is brought in federal court and the federal court determines that it lacks subject matter jurisdiction to resolve the dispute between the State and Tribal Party, then the State may bring suit in Thurston County Superior Court or such other superior court where venue is proper, if not proper in Thurston County . B.Any judicial award, determination, order, decree or other relief, whether in law or equity or otherwise, resulting from such actions under subsection A above , shall be binding and enforceable on the parties. Any money judgment or award against a Tribe , tribal officers, or employees, or the State of Washington, its agencies, or its officers and employees may exceed the amount of funding awarded under this Agreement. C.As requested by RCO, the Tribe shall provide to RCO its governing requirements and procedures for entering into Agreement with RCO and waiving its sovereign immunity . In addition, the tribe shall provide to RCO all authorizations the Tribe requires to authorize the person (s) signing the Agreement on the Tribe’s behalf to bind the Tribe and waive the Tribe’s sovereign immunity as provided herein . D.The Tribe hereby waives its sovereign immunity for suit in federal and state court for the limited purposes of allowing the State to bring and prosecute to completion such actions relating to the performance, breach, or enforcement of this Agreement as provided in subsection A above , and to bring actions to enforce any judgment arising from such actions. This waiver is not for the benefit of any third party and shall not be enforceable by any third party or by any assignee of the parties. In any enforcement action, the parties shall bear their own enforcement costs, including attorneys’ fees . For purposes of this provision, the State includes the Funding Entity, the RCO, and any other state entity or agencies as the term “agency” is broadly understood to include, but not be limited to, departments, commissions, boards, divisions, bureaus, committees, offices, councils, societies, etc. SEVERABILITYSECTION 40. The provisions of this Agreement are intended to be severable . If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Agreement. Page 66 of 66RCO Revision Date: Site PlanYouth Playfield w/LED LightingSee Plan EnlargementBackstopWarren Ave.11thStreetBroadway Ave.10thStreet 9thStreet Open LawnArea &ViewscapeLED Playfield LightingPathway Connecting FeaturesRelocated BackstopPaved Accessible ParkingExistingClubhousePavedParking w/ Retaining Wall Plan EnlargementChildren’s Play AreaDonorBricks at EntryShelterDrinking FountainExample of Children’s Play AreaRestroomEntry & Interpretive SignageExample of ShelterExample of Restroom & Drinking Fountain AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Ordinance No. _____amending Chapter 15.03 BMC entitled Wastewater COUNCIL MEETING Date: August 7, 2019 Department: PW&U Presenter: Tom Knuckey Phone: (360) 473-2376 SUMMARY: The proposed revisions to Chapter 15.03 of the Bremerton Municipal Code clarify responsibilities and requirements and make related changes. In 2014 responsibility for the portion of sewer laterals from the property (or easement) line to the sewer main was transferred from the City to the adjacent property owner; this update would transfer that responsibility back to the City. ATTACHMENTS: Ordinance No. _____ FISCAL IMPACTS (Include Budgeted Amount): The City would resume responsibility for physical repairs to sanitary sewer laterals in the right-of-way STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. _____ amending Chapter 15.03 of the Bremerton Municipal Code entitled Wastewater. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B7 1 Chapter 15.03 BMC ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 15.03 of the Bremerton Municipal Code entitled “Wastewater”. WHEREAS, the City Council desires to amend Chapter 15.03 of the Bremerton Municipal Code entitled “Wastewater” to update provisions of the chapter and to make related changes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 15.03 of the Bremerton Municipal Code entitled “Wastewater " is hereby amended to read as follows: Chapter 15.03 WASTEWATER 15.03.010 PURPOSE. This chapter establishes availability, conditions of service, system improvement requirements and the operation and maintenance of the wastewater system. 15.03.020 WASTEWATER COMPREHENSIVE PLAN. A wastewater system comprehensive plan shall be developed by the Department in accordance with WAC 173-240-050. The plan shall be approved by the Mayor, adopted by the City Council and administered by the Director. 15.03.030 SERVICE AVAILABILITY. Wastewater service is considered available if the property is situated within the wastewater service area defined in the wastewater system comprehensive plan and is adjacent to the wastewater system, and further provided that: (a) The treatment and wastewater system has the capacity and facilities to accommodate the additional flow, or the property which is part of a wastewater local improvement district (LID) or utility local improvement district (ULID) and has been assessed for sewer improvements. (b) The connection is consistent with the wastewater system comprehensive plan. (c) The connection is approved and permitted by the Department. (d) The connection is in compliance with applicable federal, state, and local rules, regulations and codes. Any customer or potential customer within the wastewater service area and not adjacent to the wastewater system may be connected to the wastewater system subject to meeting the above requirements and establishing a local improvement district (LID) or utility local improvement district (ULID) and/or entering into a public utilities construction agreement with the City for system extension or improvements of the wastewater system for service to the 2 Chapter 15.03 BMC premises. For the purpose of this section, "adjacent" shall mean sewer extended to and through the frontage or to and through the property to potential adjacent development. 15.03.040 SERVICE BEYOND CITY LIMITS. (a) General Policy. It is the general policy of the City of Bremerton that properties located outside the City limits annex into the City before wastewater utility services are provided to those properties. For the purpose of this section, "service" means extensions of and/or service connections to City wastewater utilities to property located outside City limits. "Extension" means to modify, expand, or extend the existing City wastewater infrastructure such as sewer mains and related appurtenances. This policy does not apply to water utilities. Exceptions to this policy are set forth in subsection (b) of this section. (b) Exceptions. In cases where an owner of property located outside the City limits requests extension of utility service, the City Council may, in its sole and absolute discretion, provide wastewater utility services to those properties if the property owner executes an outside utility agreement pursuant to the provisions set forth in subsection (d) of this section and: (1) Annexation Not Feasible. In cases where the City Council determines that annexation of a property located within the City’s urban growth area is not currently feasible; or (2) Failed Systems. In cases where an existing septic system serving property has failed, and: (i) The Health District local health official certifies that an existing septic system has failed and is physically incapable of being repaired or replaced in a manner meeting applicable health standards; and (ii) Connection is shown to be necessary to protect basic public health and safety and the environment; and (iii) For property located outside an urban growth area, the utility services provided by the connection are financially sustainable at rural densities and do not permit urban development pursuant to RCW 36.70A.110(4); or (3) Other Circumstances. In any other circumstances where the City Council determines, at its sole and absolute discretion, that it is necessary or appropriate to allow the provision of wastewater utility service. (c) Existing Utilities. Nothing in this section is intended to abrogate any existing wastewater utility systems currently in existence outside the City limits. The City does not intend to terminate any wastewater utility service outside the City limits that is in existence as of the effective date of the ordinance codifying this section. For purposes of this chapter, "in existence" means the property is currently receiving utility service and/or has a fully signed, valid, City utility service agreement. However, the City will not provide new wastewater utility services to property from existing wastewater utilities located outside the City limits except: (1) As provided in subsection (b) of this section; or (2) A new service connection to a single parcel of property from a fronting sewer main pursuant to BMC 15.03.080 that does not modify, expand, or extend the City’s wastewater utility infrastructure such as sewer mains and related appurtenances; or (3) New utility services from an existing City wastewater utility system as established by a local improvement district (LID) to property that is subject to the LID. To receive any of these new services, the property owner must execute an agreement pursuant to the provisions set forth in subsection (d) of this section. The Director of Public Works and Utilities is authorized to approve utility service pursuant to subsections (c)(2) and (3) of this section. 3 Chapter 15.03 BMC (d) Outside Utility Agreement. In the event that the City Council determines, pursuant to subsection (b) of this section, to provide wastewater utility services beyond the City limits, the owner of the property for which service is authorized must execute an outside utility agreement with the City providing for the owner granting to the City of Bremerton a limited power of attorney to include owner’s consent to annexation of the property as part of any notice of intent or petition for annexation presented to the City of Bremerton. (e) The Director of Public Works and Utilities shall review the application for services and forward the same, together with the Director’s recommendation, to the City Council for review and determination under subsection (b) of this section. 15.03.050 SERVICE - MANDATED. Any premises within two hundred (200) feet of a City wastewater system where sewage originates and where the Health District local health officer has determined that a wastewater service connection is required in order to protect public health and safety shall be required to connect to the City wastewater system. The Health District local health officer shall serve the owner with a written notice requiring the connection. A copy of such notice shall be provided to the Department. Such connection shall be made within the time limit as provided for in the notice. Where connection to City wastewater system is required, the connection shall be made in accordance with the Engineering Design and Construction Standards. Whenever connection to the wastewater system is required, the property owner shall be required to remove any connections to cesspools, septic tanks, or other on-site wastewater disposal facilities and install a direct connection to the wastewater system. All abandoned facilities shall be back-filled by the property owner as required by the Health District local health officer within thirty (30) days from the time of connection to the City’s wastewater system or sooner if such facility constitutes a health hazard or public nuisance. The Department is authorized and directed to begin billing and collecting at the time of connection for all wastewater system service charges or sixty (60) days after written notice is served by the Health District local health officer, whether or not the owner has completed connection to the City’s wastewater system. If the owner fails, neglects, or refuses to connect the property, building, or premises to the wastewater system within the time specified by the notice, the City may make such connection. The cost of the connection shall be assessed against the property and shall become a lien. The City is authorized, empowered, and directed to collect the cost of the connection by either foreclosure of the lien or by a suit against the owner. 15.03.060 CONDITIONS OF SERVICE - BULK TRANSPORT. No person shall discharge materials from a mobile tank into the City wastewater system except at points designated by the Director. Discharge of materials transported from sources outside the wastewater area, and from commercial or industrial sources wherever located, may be prohibited at the discretion of the Director. Prior to discharge of materials from a mobile tank, a Department manifest shall be completed and submitted to the Department, identifying source, quantity, and nature of the materials to be discharged. 4 Chapter 15.03 BMC A charge shall be made as provided in BMC 15.06.060, Miscellaneous Fees and Charges. This charge may include, but not be limited to, discharges containing sewage or leachate from landfills, septic tanks, cesspools, chemical toilets, or similar sewage receptacles. 15.03.070 WASTEWATER SYSTEMS/ENGINEERING DESIGN AND CONSTRUCTION STANDARDS - GENERAL. All wastewater sewers and appurtenances shall be installed by the Department or a contractor licensed in accordance with the provisions of this chapter in compliance with the Engineering Design and Construction Standards and local, state and federal regulations. No connections shall be made to new sewer mains until all acceptance documentation has been received and approved by the Department. Required documentation includes record drawings, deeds of conveyance, easement(s) and any warranty bond(s). All wastewater system extensions shall be installed along the entire frontage of the premises or plat to be served. The Department may, at its option, require installation of sanitary sewers larger than the minimum sizes specified in the Engineering Design and Construction Standards to provide for adequate capacity within the wastewater system. The Department is authorized to enter into cost sharing agreements to contribute to the cost for larger sanitary sewers or other improvements based upon the wastewater system comprehensive plan. Upon completion of a new wastewater system extension, owners of premises adjacent to or within two hundred (200) feet of the wastewater system who are being supplied with City wastewater services through a private sewer or connection shall make application for a new utility service agreement and shall install a separate service connection to the new sanitary sewer. Service from private system shall be discontinued ninety (90) days following completion of the new main. 15.03.080 SERVICE CONNECTIONS. All service connections shall be installed by the Department or by a contractor licensed in accordance with the provisions of this chapter in compliance with the Engineering Design and Construction Standards. The service connections shall be extended at right angles from the wastewater system to a point adjacent to the property line and shall be maintained by and kept within the exclusive control of the City. Whenever an applicant requests wastewater service to a premises with no fronting sewer main, a standard sewer main shall be required to be installed as a prerequisite to connection to the wastewater system. Every parcel under separate ownership connected to the wastewater system shall be required to install a separate service connection to the wastewater main, and the premises so supplied will not be allowed to provide service to any other premises. However, these restrictions shall not apply to existing connections unless improvements are done to the parcel and a separate sewer lateral can be installed for twenty-five percent (25%) or less than the total improvement cost of the project, or in the judgment of the Director, such existing connection should be discontinued. When a single parcel of land having more than one (1) residential structure served by a single connection is subdivided, the installation of new connections shall be required for the structures on the newly established lots. The application for service will be filed prior to the approval of the subdivision. Separate services will be consistent with the provisions of this chapter. 5 Chapter 15.03 BMC 15.03.090 CONNECTION OWNERSHIP. All connections from the wastewater main to the property line shall be and remain the property of the City and will not be removed unless service to the premises is discontinued or abandoned. Connections shall not be removed or in any way disturbed except by, or as approved by the Department. 15.03.100 WASTEWATER SAMPLING STATIONS. When required by the Department, the property owner shall install and maintain at their expense a manhole in the side sewer to facilitate observation, sampling, and measurement of the wastewater strength and flow. The manhole shall be located as approved by the Department and constructed in accordance with the Engineering Design and Construction Standards. Once each year, the Wastewater Manager shall assign a "typical" waste strength to each Commercial I through VII class as defined in BMC 15.01.020, except for a "verified strength," for purposes of determining user charges. Users in the verified strength class will have their strength determined by direct periodic composite sampling and analysis. Composite samples shall be collected and analyzed at the owner’s expense. To be eligible to be charged as a verified strength user, the owner must have the discharge(s) to the wastewater system structured in such a way that sampling of the discharge(s) can be reasonably achieved without contamination or dilution by other discharges. If special provisions are required to achieve discharge sampling, such provisions shall be made at the owner’s expense. 15.03.110 PRELIMINARY TREATMENT FACILITIES. Preliminary treatment may be required by the City if the biochemical oxygen demand (BOD) or total suspended solids (TSS) of the sewage, industrial waste, or wastewater exceeds two hundred (200) parts per million (1,000,000) by weight, exceeds local limits, or contains prohibited discharges as defined herein, or exceeds other applicable standards or regulations. High conductivity discharges will be carefully evaluated for discharge into the City’s sewer system. Saltwater discharges can cause corrosion, exacerbate odor problems in the treatment plant, interfere with analysis of samples, and could affect the City’s ability to reclaim the wastewater for other uses. Such preliminary treatment facilities shall be approved by the Department and constructed, operated, and maintained by the owner at the owner’s expense. The daily maximum pollutants allowed into the wastewater system from any service shall not exceed the following limits: Arsenic 0.10 mg/L Cadmium 0.10 mg/L Chromium (total) 1.0 mg/L Chromium (hexavalent) 0.25 mg/L Conductivity 6.00 mS/cm Copper (total) 0.75 mg/L Lead 0.25 mg/L 6 Chapter 15.03 BMC Mercury (total) 0.010 mg/L Molybdenum 1.0 mg/L Nickel 0.60 mg/L Selenium 0.10 mg/L Silver (total) 0.20 mg/L Zinc 2.0 mg/L Cyanide (total) 0.64 mg/L Cyanide (free) 0.20 mg/L Ammonia 50.0 mg/L Benzene 0.07 mg/L Ethyl benzene 1.70 mg/L Toluene 1.40 mg/L TPH 50.0 mg/L pH 6.0 - 10.0 Any commercial user that exceeds any of the above limits shall have an appropriately sized, properly installed, regularly maintained and sufficiently documented type of treatment device in place to help reduce the strength of their sewer discharge. For the purpose of conductivity, exceeding the limit of 6.0 mS/cm shall mean continuous average equal to or exceeding 6.0 mS/cm for any thirty (30) day period. Failure to comply with the installation of the required treatment device within ninety (90) days of notification shall be cause of the discontinuance of the water service to the premises. 15.03.120 BACKWATER VALVES. When a premises discharges wastewater into a force main or pressure main or wherever a situation exists involving an unusual danger of backflow, a backwater valve shall be required and shall be installed in a manner accessible for maintenance per Engineering Design and Construction Standards. The installation and effective operation of the backwater valve shall be the sole responsibility of the owner connecting to the wastewater system. The installation shall meet the requirements of the Engineering Design and Construction Standards. 15.03.130 ABANDONMENT. When a property owner demolishes or removes a building which was connected to the wastewater utility collection system, the owner shall be required to expose and plug the side sewer at the property line in accordance with the Engineering Design and Construction Standards. A sewer cap permit is required to perform this work. 15.03.140 WASTEWATER SYSTEM OPERATION AND MAINTENANCE - GENERAL. The Department shall be responsible for the operation, maintenance, and repair of the wastewater system and appurtenances under its jurisdiction and located within the public right- 7 Chapter 15.03 BMC of-way, dedicated utility easements, and City owned property. The Department shall not be responsible for servicing private systems connected to the wastewater system, except as provided in this chapter. When maintenance, repair, or replacement of wastewater system is required due to user activity resulting in unsafe, nonconforming, or unauthorized conditions as set forth in this chapter, any expense incurred by the City to abate such condition shall be the responsibility of the owner(s), in accordance with the current assessments, rates, fees, and charges set forth in Chapter 15.06 BMC, including any related cost and cost of collection. 15.03.150 INTERRUPTION OF SERVICE - EMERGENCY. The Department may restrict the use of the wastewater system through regulation or control of the use whenever an emergency exists affecting the wastewater system, or for the purpose of making repairs, extensions, or any other necessary work. Whenever reasonable, and in cases where it has advance knowledge, the Department will provide notice of such emergency using appropriate methods of communication, setting forth any limitations on the use of the wastewater system that may be deemed necessary for public health and safety. The City shall not be held responsible for any damage to private property resulting from interruption, failure of the wastewater system, or failure of the property owner to comply with the provisions of this code. 15.03.160 ABATEMENT OF NONCONFORMING, UNAUTHORIZED OR UNSAFE CONDITIONS. The Department shall be responsible for the integrity, safety, and continuity of the wastewater system. As a condition of the utility service agreement the property owner shall grant the Department the authority to make inspections at any reasonable time if the Department or other appropriate agency has reasonable cause to believe there exists on premises a nonconforming, illegal, unauthorized, or unsafe condition or to verify no such condition exists. The Director may enter onto such property to inspect the condition or to perform any duties imposed upon the Department by this code, provided the Department shall first make reasonable efforts to contact the owner or person responsible for such property. The Department shall have recourse to every remedy provided by law to secure entry and abate the conditions. Such remedies may include, but not be limited to, securing property owner’s corrections; revocation, suspension, or discontinuation of service, permits, or authorizations; removal, reconstruction, replacement, or alteration of unauthorized condition; or all other powers and remedies that may be available under this title and regulations and procedures adopted hereunder. Any expense incurred by the City to abate such condition shall be the responsibility of the owner(s), in accordance with the current assessments, rates, fees, and charges set forth in Chapter 15.06 BMC, including any related cost and cost of collection. 15.03.170 REPAIR OF PRIVATE SYSTEMS. Whenever any private wastewater system connected with the City’s wastewater system becomes obstructed, broken, or in need of repair, the owner shall make all repairs within five (5) days after notification by the Health District local health officer or Director. If the owner fails to make repairs within the five (5) day period, the Director , may terminate the wastewater service by termination of the water service to the property being serviced by the subject property. When 8 Chapter 15.03 BMC two (2) or more houses or buildings are connected to the same private sewer, the owners shall be jointly and severally liable for work done by the City. If the repairs are not constructed and completed in accordance with the provisions of this code and/or in compliance with the approved permit, and/or in accordance with the current Engineering Design and Construction Standards, and if the contractor or person doing the work shall refuse to properly construct and complete such work, notice of such failure or refusal shall be given to the owner of the property, for whom the work is being done, as herein provided. The Director may abate the condition, by either causing the correction to be completed in the proper manner, or by termination of the water service until the correction is made. Any expense incurred by the City to abate such condition shall be the responsibility of the owner(s), in accordance with the current assessments, rates, fees, and charges set forth in Chapter 15.06 BMC, including any related cost and cost of collection. 15.03.180 EXCESSIVE DISCHARGE. When excessive discharge periodically overloads the capacity of the side sewer supplying service to any premises, the Director shall determine the size of the side sewer from the main necessary to give proper sewer service without damage to the system or causing sewer overflow. The City shall notify the property owner of the required change in the size of the side sewer installation. The replacement of the side sewer shall be at the expense of the property owner. Failure on the part of the property owner to comply with the request within thirty (30) days shall be cause for the termination of wastewater service by termination of the water service to the property being serviced by the subject property. 15.03.190 WASTEWATER SYSTEM CLEANING. All side sewer cleaning contractors and/or plumbers and owners engaged in cleaning existing side sewers (as distinguished from plumbing and septic tank facilities) shall notify the Department prior to beginning such operations. 15.03.200 CHANGED SITE CONDITIONS. When an existing structure is removed and a new structure is constructed on the same parcel of property, a new utility service agreement is required. Any existing side sewer will need to meet the current Engineering Design and Construction Standards. The sewer lateral shall be videoed and approved by the Director for reuse. Any existing side sewer determined to be substandard must be replaced as directed by the Director, at the owner’s expense. 15.03.210 PROHIBITED ACTS. It shall be unlawful for any person to violate the following: (a) Tampering. It shall be unlawful for any person, unless duly authorized by the Department, to disturb, interfere with, or damage any wastewater system, including pipe, machinery, or tools, or buildings, improvements, or other appurtenances belonging to, connected with, or under the jurisdiction of the Department. (b) Prohibited Discharges. It shall be unlawful for any person to deposit in any manhole, lamp hole, flush tank, or sewer opening: (1) Any garbage, rubbish, dead animals, or any substance which will obstruct, or have a tendency to obstruct, the flow of any sewer system. (2) Discharges containing toxic, poisonous, or flammable solids, liquids, or gases in sufficient quantity, either singly or by interaction with other wastes, to injure or interfere 9 Chapter 15.03 BMC with any sewage collection or treatment process, constitute a hazard to humans or animals, create a public nuisance, or create any hazard in the receiving waters of the wastewater treatment plants. (3) Any strong acid waste, strong alkaline waste or other waste with corrosive properties capable of causing damage or hazard to the structures, equipment, or personnel of the City. (4) Any waste that: (i) Contains polar and nonpolar fats, oils and greases in amounts that cause a visible sheen on the discharge or in the public sewer system; (ii) Causes a build-up of grease in any public sewer facility; (iii) Causes an obstruction of the public sewer system; (iv) Is found to contain more than one hundred (100) parts per million (1,000,000) by weight of fats, oils and grease as measured using analytical procedures established in 40 CFR Part 136; or (v) Any discharge that violates Chapter 15.05 BMC, entitled "Fats, Oils and Grease." (5) Overflows from unpolluted water storage facilities. (6) Clear water from refrigeration, reverse-cycle heat pumps, and cooling or air- conditioning equipment installed hereafter, except for the periodic draining and cleaning. (7) Steam exhaust or blow-off, or any heated water until the temperature thereof has been reduced to less than one hundred (100) degrees Fahrenheit. (8) Waste containing suspended solids and/or inorganic materials of such character and quantity that unusual attention or expense is required to handle such materials in the sewer system or at the wastewater treatment plant. (9) Any obnoxious or malodorous gas or substance capable of creating a public nuisance. (10) Any septic tank wastes or portable holding tank waste. (11) Any new stormwater discharges. (12) Any discharge of food waste through a commercial disposal unit into a grease interceptor. Any existing sites that are found to have food waste disposal units will have ninety (90) days to remove the units after notification. (13) Any catch basins that collect wastewater runoff from dumpsters serving food service establishments that flow into the stormwater system or wastewater system. Such flow will need to be redirected to flow into a grease interceptor and connect into a sanitary system, unless another plan is approved by the Director. Maximum surface area allowed to flow into the collection system will be two hundred (200) square feet. (14) Any single service discharge that exceeds the following daily maximum pollutant limits:** Arsenic 0.10 mg/L Cadmium 0.10 mg/L Chromium (total) 1.0 mg/L Chromium (hexavalent) 0.25 mg/L Copper (total) 0.75 mg/L 10 Chapter 15.03 BMC Lead 0.25 mg/L Mercury (total) 0.010 mg/L Molybdenum 1.0 mg/L Nickel 0.60 mg/L Selenium 0.10 mg/L Silver (total) 0.20 mg/L Zinc 2.0 mg/L Cyanide (total) 0.64 mg/L Cyanide (free) 0.20 mg/L Ammonia 50.0 mg/L Benzene 0.07 mg/L Ethyl benzene 1.70 mg/L Toluene 1.40 mg/L TPH 50.0 mg/L ** Businesses that follow BMPs (best management practices) for their industry can petition the City for a higher limit. This will be limited to businesses contributing less than one percent (1%) of the total flow to the City’s wastewater system and treatment plant. 15.03.215 LOW PRESSURE SEWERS. Low pressure sewers may be constructed in an area where, in the opinion of the Director, it is impractical to construct gravity sewers and the cost will not be a factor. Low pressure sewers shall be designed and constructed in accordance with the Engineering Design and Construction Standards. The pump and enclosures shall be owned and operated by the City. The owner shall be financially responsible for and shall own and operate all the electrical installation and all piping and conveyance facilities to the property line. 15.03.220 VIOLATION - PENALTY. (a) Any violation of any provision of this chapter constitutes a civil violation under Chapter 1.04 BMC for which a monetary penalty may be assessed and abatement may be required as provided therein. (b) In addition to, or as an alternative to, any other penalty provided in this chapter or by law, any person who violates any provision of this chapter shall be guilty of a misdemeanor pursuant to BMC 1.12.020, Penalties. SECTION 1. 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. 11 Chapter 15.03 BMC SECTION 2. Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3. 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\Public Works & Utilities\Chapter 15.03 Final 7-10-19.docx AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: July 24, 2019 Professional Services Agreement with Parametrix, Inc. for Design and Construction Support Services for the Oyster Bay Beach Sewer Upgrades Project COUNCIL MEETING Date: August 7, 2019 Department: PW&U Engineering Presenter: Bill Davis Phone: (360) 473-2312 SUMMARY: In 2018, the City received a $3.8M loan from the Department of Ecology for a project that will improve the sewer collection system along Oyster Bay. The work will install individual grinder pump stations at approximately 53 private properties, convert a gravity sewer main to a force main in the marine environment to eliminate lateral connections and associated surcharges, and include various upland gravity and low-pressure collection system improvements. Based on an evaluation and interviews of four qualified consultants from the MRSC Consultant Roster, the City has selected Parametrix to provide design and construction support services for the Oyster Bay Beach Sewer Upgrades project. The contract amount is $437,006. ATTACHMENTS: 1) Professional Services Agreement, with attached Exhibits A through D; 2) Project Area Map FISCAL IMPACTS (Include Budgeted Amount): The project is included in the 2019 Wastewater Capital Budget. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to approve the Professional Services Agreement with Parametrix, Inc. in the amount of $437,006; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B8 Page 1 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 PROFESSIONAL SERVICES AGREEMENT Oyster Bay Beach Sewer Upgrades City Project # 5827 The City of Bremerton (“City”) and Parametrix, Inc., (“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, dated July 3, 2019, 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. This project is funded by an SRF Loan for $3,800,000 from the Department of Ecology that expires on December 31, 2022. Terms and conditions from the loan funding agency are included in Exhibit D and are incorporated into this Agreement. In the event of conflict within the contract, the terms and conditions in Exhibit D shall take precedence. II. Term: The City and the Consultant agree that work will begin on the tasks described in Exhibit A immediately upon execution of this Agreement. The parties agree that the work described in Exhibit A is to be completed as provided for in the work schedule attached hereto as Exhibit B; provided however, that additional time shall be granted by the City for excusable delays or extra work as provided for in Section IX.A of this agreement. III. Compensation: In consideration of the services provided pursuant to this Agreement, the City shall pay Consultant in an amount not to exceed $437,006. Consultant’s charges and bills shall conform to the fee schedule attached hereto as Exhibit C and incorporated herein by this reference. 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. Page 2 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 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 C ity to its employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub-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, Page 3 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 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 connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees, sub-consultants or sub-contractors. Before beginning work on the project described in this Agreement, the Consultant shall provide a Certificate of Insurance evidencing: 1. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and 2. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations/broad form property damage; explosion, collapse and underground (XCU) if applicable; and 3. Excess Liability insurance with limits not less than $1,000,000 limit per occurrence and aggregate; and 4. Professional Liability insurance with limits no less than $1,000,000 limit per occurrence/claim; and 5. Workers Compensation insurance as statutorily required by the Industrial Insurance Act of the State of Washington, Title 51, Revised Code of Washington and employer's liability with limits not less than $1,000,000. Any payment of deductible or self-insured retention shall be the sole responsibility of the 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 Page 4 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 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 6th Street, Suite 100, Bremerton, WA 98337 within two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement. The City also reserves its unqualified right to require at any time and for any reason, proof of coverage in the form of a duplicate of the insurance policy with all endorsements as evidence of coverage. VII. General Conditions: A. 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 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 Puyallup, 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. Page 5 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 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 Puyallup, Seattle and Bremerton, 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. 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 1st 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. Notices to be sent to: Notices to be sent to: CITY: CONSULTANT: Attn: Angela Woods Attn: Mark Yand City of Bremerton Parametrix, Inc. 345 6th Street, Suite 100 60 Washington Ave, Suite 390 Bremerton, WA 98337-1891 Bremerton, WA 98337 Page 6 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 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 Contractor 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: This Agreement shall remain in force until completion and acceptance of the services, terminated by written instrument upon mutual consent, or by the City of Bremerton for convenience. This Agreement may be immediately terminated for cause by a Party if the other Party substantially fails to perform through no fault of the terminating Party, and the non- performing Party does not commence correction of the failure of performance within thirty (30) days of the terminating Party’s sending notice to the non-performing Party. Any Notice by Consultant shall include a report showing the status of all items listed in the Scope of Work current through the termination date. If the City receives reimbursement by any federal, state, or other source for work described in Section I herein, and that funding is withdrawn, reduced or limited in any way, or the project is cancelled or substantially reduced after the execution date of this Agreement and prior to the completion of the work, the City may summarily terminate this Agreement. A. Excusable Delays: The right of Consultant to proceed shall not be terminated nor shall Consultant be charged with liquidated damages for any delays in the completion of the work due to: 1) any acts of the federal government in controlling, restricting, or requisitioning materials, equipment, tools, or labor by reason of war, national defense, or other national emergency; 2) any acts of the City, its consultants, or other public agencies causing such delay; Page 7 of 7 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 and 3) causes not reasonably foreseeable by the parties at the time of the execution of the Agreement that are beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God, fires, floods, strikes, or weather of unusual severity. PROVIDED, HOWEVER, that the Consultant must promptly notify the City within ten (10) calendar days in writing of the cause of the delay. If, on the basis of the facts and the terms of this Agreement, the delay is properly excusable, the City shall, in writing, extend the time for completing the work for a period of time commensurate with the period of excusable delay. B. 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 shal l 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. IN WITNESS WHEREOF, the parties below have executed this Agreement. CITY: CONSULTANT: CITY OF BREMERTON PARAMETRIX, INC. By: By: Print Name: Print Name: Its: Its: Date: Date: APPROVED AS TO FORM: ATTEST: By: By: Roger A. Lubovich, Bremerton City Attorney Angela Woods, City Clerk Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 EXHIBIT A SCOPE OF WORK for Oyster Bay Beach Sewer Upgrades July 3, 2019 City of Bremerton Oyster Bay Beach Sewer Upgrades 1 July 2019 SCOPE OF WORK City of Bremerton Oyster Bay Beach Sewer Upgrades PROJECT BACKGROUND This project includes the design and installation of grinder pump stations to approximately 53 properties as well as upland gravity and low-pressure collection system improvements to eliminate sewage backups into Oyster Bay from failed backflow prevention devices and broken laterals. This project will address an ongoing concern with surcharging sewers that have historically caused water quality impacts and damage to residences connected to a gravity pressure sewer located in the beach of Oyster Bay within the City of Bremerton. The overall goal of the project is to reduce the fecal coliform bacteria pollution and other pollution associated with sewage in Oyster Bay by moving the wastewater collection system out of marine waters and into an upland system. This project is funded by an SRF Loan for $3,800,000 from the Department of Ecology that expires on December 31, 2022. SUMMARY OF WORK BREAKDOWN This scope of work includes the following tasks: Task 1: Alternatives Analysis Task 2: Survey Task 3: Preliminary Design Task 4: Detailed Design Task 5: Outreach Task 6: Environmental Analysis and Permitting Task 7: Bidding Assistance Task 8: Services During Construction Task 9: Project Management Task 10: Management Reserve Task 11: Geotechnical Support SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 2 July 2019 DETAILED WORK BREAKDOWN Task 1: Alternatives Analysis Objective Develop alternative sewer alignments for connection to existing upland gravity sewer, perform hydraulic analysis of existing gravity and pressure sewer systems and of alternative scenarios, and provide condition assessment and alternative rehabilitation technologies for the Oyster Bay gravity pressure main (beach main). Activities ·Evaluate capacity of existing gravity and pressure collection system feeding OB-2. ·Develop System Curves for OB-2 force main and beach main between OB-1 and OB-2. ·Research and evaluate beach main rehabilitation technologies. ·Develop Class 5 cost estimates for up to 3 rehabilitation technologies. ·Develop up to 3 alignments for sewer within right-of-way for connection to existing upland sewer. ·Develop Class 5 cost estimate for up to 3 alignment alternatives. ·Identify preferred sewer alignments located within public rights-of-way for connection to existing upland gravity sewer. ·Attend one 2-hour workshop at the City (two Parametrix staff) to discuss Technical Memorandum and alternative selection. Assumptions ·City will provide horizontal and vertical as-builts of applicable sewer infrastructure. ·City will provide OB-2 flows from each pump from drawdown testing results and provide discharge pressures. ·Investment Grade Efficiency Audit required by Department of Ecology Agreement is by others at no cost to Parametrix. Deliverables ·Draft and Final Alternatives Analysis Technical Memorandum (electronic copies only). Final Technical Memorandum will provide a specific rehabilitation technology recommendation and preferred sewer alignment. Applicable calculations and supporting documentation will be available upon request. Task 2: Survey Objective Creation of survey base map in support of the design and construction of new residential sanitary sewer lines and grinder pump stations. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 3 July 2019 Activities ·Ground and aerial mapping of physical improvements, within public right-of-way along the following roads: Kitsap Way, from Oyster Bay Avenue S to Shorewood Drive; Shorewood Drive, from Kitsap Way to Madrona Point; 650 feet east along Madrona Point from Shorewood Drive and including roads, driveways, culverts, and surface and subsurface utilities. ·A photogrammetric aerial flight will occur to acquire imagery for planimetric and surface data along rights-of-way and residential properties. ·Ground survey will consist of recovering road monumentation through project corridor, setting control, locating surface and subsurface utilities. Ground survey will also include searching for property corners along the right-of-way based on Kitsap County GIS information. Assumptions ·Excludes setting property corners. ·Parametrix shall rely on Kitsap County GIS lines for rights-of-way and property boundary information. Parametrix will not resolve property boundaries or corners. ·Project locates will be called in and subsurface utilities marked by the City in four phases. ·Underground utilities will be marked within public rights-of-way only. ·Provide survey base map of existing conditions utilizing the following: Aerial flight. Standard survey methods. ·Aerial flight will be conducted by a subcontractor (via airplane.) ·Parametrix survey will perform measure downs of existing stormwater and sanitary sewer facilities to determine and/or confirm pipe size, material, and invert elevations. ·Survey project management and quality assurance and quality control (QA/QC) for survey will be provided as part of this phase. Deliverables shall be reviewed in-house to ensure quality and accuracy of any deliverable. ·Acquisition of any easements and/or agreements which allow property access for design and construction including but not limited to Grinder Pump Service Agreement, Sewer Construction Right of Entry Agreement, and Sewer Easement, are to be obtained by others at no cost to Parametrix. Deliverables ·Project base map in AutoCAD 2018 file format to include property and right-of-way lines, existing features within the mapping area, topography, and ortho imagery. Found property corners will be indicated as such. Task 3: Preliminary Design (30%) Objective Prepare 30% level engineering design documents. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 4 July 2019 Activities ·Attend one 2-hour workshop (pre-design kick-off meeting) at the City (two Parametrix staff) to determine design elements such as extent of roadway restoration and traffic control requirements. ·Conduct agency and utility coordination and develop correspondence log. ·Perform site investigations with City staff at approximately 53 individual properties to determine pump station location, forcemain alignment, and assessment of potential electrical panel location. ·Perform 3D scans of approximately 53 individual properties during site investigation and process scans. ·Complete 30% level design drawings (see Attachment 1: Sheet Index). ·Develop 30% Engineer’s Opinion of Probable Construction Cost (EOPCC). ·Develop draft Basis of Design Technical Memorandum. ·Perform internal QA/QC. Assumptions ·Assumed City’s review period of 30% design package is 3 weeks. ·One meeting with the City is included to discuss the preliminary design prior to the City’s review of the 30% design package. The meeting will be attended by two Parametrix staff. ·The City will provide one set of resolved and consolidated comments on 30% design which will be incorporated into the 60% design submittal. ·Deliverables will be submitted electronically as PDF files using a City-selected cloud-based file transfer platform or via email. Hardcopies of deliverables are excluded. ·Internal QA/QC documentation is excluded as a deliverable. ·City will provide standard design and installation details for grinder pump station, grinder pump valve box clean-out, grinder pump station wiring diagram, collection valve box clean-out, standard clean-out, side sewer (pressure to gravity), side sewer (pressure to pressure), concrete sidewalk, and other details to be identified during design. ·Acquisition of any easements and/or agreements including but not limited to Grinder Pump Service Agreement, Sewer Construction Right of Entry Agreement, and Sewer Easement are to be obtained by others at no cost to Parametrix. ·City will lead and provide coordination with residents for site investigations. ·Approximately 53 site investigations, each lasting up to one hour with two Parametrix staff in attendance for six and one Parametrix staff in attendance for 47. ·3D scanning activity will be performed during the 1-hour site investigation. ·Geotechnical engineering performed to support this task will be managed under Task 11: Geotechnical Support. Deliverables ·30% design drawings. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 5 July 2019 ·30% EOPCC. ·Utility correspondence log. ·Draft Basis of Design Technical Memorandum (to be updated and finalized during detailed design.) ·Comment response form (electronic). ·3D scan files and free viewing software. Task 4: Detailed Design Objective Provide services for detailed design and includes tasks for intermediate (60%), pre-final (90%), and final (100%) design. Task 4.1: Intermediate Design (60%) Activities ·Advance drawings to 60% design level (see Attachment 1: Sheet Index). ·Advance EOPCC to 60% design level. ·Advance agency and utility coordination and update correspondence log. ·Identify required Bidding and Contract Documents. ·Update Basis of Design Technical Memorandum. ·Perform internal QA/QC. Assumptions ·Assumed City’s review period of 60% design package is 3 weeks. ·One meeting with the City is included to discuss the intermediate design before the City’s review. The meeting will be attended by two Parametrix staff. ·The City will provide one set of resolved and consolidated comments on the 60% design which will be incorporated into the 90% design submittal. ·Deliverables will be submitted electronically as PDF files using a City-selected cloud-based file transfer platform or via email. Hardcopies of deliverables are excluded. ·Internal QA/QC documentation is excluded as a deliverable. ·WSDOT standard specifications will be used for the project. ·The City will provide Bidding Documents in PDF and Microsoft Word format from a recent past project. ·Geotechnical engineering performed to support this subtask will be managed under Task 11: Geotechnical Support. Deliverables ·60% design drawings. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 6 July 2019 ·Front-end Bidding and Contract Document table of contents. ·60% EOPCC. ·Updated utility correspondence log. ·Updated Basis of Design Technical Memorandum. ·Comment response form (electronic). Subtask 4.2: Pre-Final Design (90%) Activities ·Advance drawings to 90% design level (see Attachment 1: Sheet Index). ·Advance EOPCC to 90% design level. ·Advance agency and utility coordination and update correspondence log. ·Update Basis of Design Technical Memorandum. ·Perform internal QA/QC. Assumptions ·Assumed City’s review period of 90% design package is 3 weeks. ·One meeting with the City is included to discuss the pre-final design before the City’s review. The meeting will be attended by two Parametrix staff. ·The City will provide one set of resolved and consolidated comments on the 90% design which will be incorporated into the 100% design submittal. ·Deliverables will be submitted electronically as PDF files using a City-selected cloud-based file transfer platform or via email. Hardcopies of deliverables are excluded. ·Internal QA/QC documentation is excluded as a deliverable. ·Geotechnical engineering performed to support this subtask will be managed under Task 11: Geotechnical Support. Deliverables ·90% design drawings. ·90% Bidding Documents (special provisions, supplementary technical specifications, and front-end Bidding and Contract Documents). ·90% EOPCC. ·Final utility correspondence log. ·Final Basis of Design Technical Memorandum. ·Comment response form (electronic). SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 7 July 2019 Subtask 4.3: Final Design (100%) Activities ·Advance drawings to 100% design level. ·Advance Bidding Documents to 100% design level. ·Advance EOPCC to 100% design level. ·Perform internal QA/QC. Assumptions ·Design review meeting with the City is excluded. ·Internal QA/QC documentation is excluded as a deliverable. ·Incorporation of City-comments on 100% design package is excluded. ·Geotechnical engineering performed to support this subtask will be managed under Task 11: Geotechnical Support. Deliverables ·Bidding Documents including final plans, technical specifications, front-end Bidding and Contract Documents, and references including the Geotechnical Report. ·100% EOPCC. Task 5: Outreach Objective Coordinate with City Staff, individual property owners, and other stakeholders. Activities ·Review City’s outreach plan. ·Participate in up to three “neighborhood” outreach meetings. ·Prepare project boards for outreach meetings. Assumptions ·Each neighborhood outreach meeting will last up to 2 hours. ·PowerPoint presentations excluded. Deliverables ·Three project boards per outreach meeting. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 8 July 2019 Task 6: Environmental Analysis and Permitting Objective Provide permitting services for the work outlined herein to comply with the City of Bremerton and other applicable regulatory agencies’ permitting requirements. Activities ·Permit coordination with various agencies at the direction of the City. This activity will include meetings and consultations with permitting agencies before application submittal to confirm applicability of permits, fully understand the concerns of the permitting agencies, and comply with all permit application requirements. ·Develop permit memorandum that outlines regulatory requirements. The memorandum will include a matrix that identifies permits and approvals for work that will occur in the regulated shoreline environment, aquatic lands (owned by state and federal government), and waters of the United States (U.S.). ·Develop permit matrix that shall identify each expected permit or approval including: Circumstances that trigger the need for the permit or approval. Agency issuing the permit including contact information (e.g., contact person). Expected duration to obtain permit. Critical issues that may affect obtaining the permit. Checklist of requirements pertaining to the permits and approvals. ·Prepare and submit Joint Aquatic Resources Permit Application (JARPA) for compliance with Section 404 and Section 10 permits (U.S. Army Corps of Engineers [Corps]). ·Prepare and submit Biological Evaluation (BE) for informal consultation for compliance with the Endangered Species Act Section 7 (National Marine Fisheries Service, U.S. Fish and Wildlife Service). ·Prepare Attachment E of the JARPA and submit JARPA package to Washington Department of Natural Resources (WDNR) for their Aquatic Use Authorization. ·Prepare JARPA and submit online for compliance with Hydraulic Permit Approval (Washington Department of Fish and Wildlife [WDFW]. (WDFW may require forage fish surveys, see assumptions below). ·Prepare SEPA Environmental Checklist for compliance with State Environmental Policy Act (SEPA) approval (City of Bremerton). Assumptions ·It is assumed that permit applications will be supported by the information and deliverables contained in the preliminary design. Copies of drawings, supporting calculations, and other technical information will be provided in the format and quantities necessary to support each application. The City will review and approve all submittals prior to submission. ·Permit meetings and consultations with permitting agencies will include: SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 9 July 2019 One 2-hour meeting with the Corps Seattle District Office attended by two Parametrix staff and two City staff. One 8-hour site visit to the 53 sites with the WDFW attended by one Parametrix staff and one City staff. One 1-hour pre-application meeting with the City of Bremerton Department of Community Development. Level of effort includes meeting/site visit preparation and travel, and preparation of meeting/site visit summaries. The City will prepare and submit the pre-submittal conference application package for the meeting with the Department of Community Development. ·The BE for informal consultation will be sufficient for the project. ·The project is eligible for a Corps Section 404 nationwide permit. ·A compensatory mitigation plan for impacts to aquatic areas and/or shoreline habitat will not be required. ·The City will obtain property owner signatures on behalf of Attachment A of the JARPA application form. ·Forage fish surveys are excluded. ·The SEPA checklist will result in a Determination of Non-Significance or Mitigated Determination of Non-Significance. ·The City will prepare and coordinate the SEPA public notice including posting on the property, publication in the local newspaper, and mailings to appropriate entities. ·The project is exempt from critical areas review per Bremerton Municipal Code (BMC 20.14.145). The City will prepare and coordinate the exemption request per BMC 20.14.145. ·The project is exempt from a Shoreline Substantial Development permit requirement per WAC 173-27-040 (2)(b). The City will prepare and coordinate the exemption request per BMC 20.02.040. ·The City is responsible for complying with Section 106 of the National Historic Preservation Act of 1966 (NHPA). ·The project is exempt from a Site Development Permit per BMC 20.58.090 (c)(3). ·Utility easements will be obtained by the City. ·The City will pay all permitting fees. ·All other permitting that may be needed for project completion is excluded. Deliverables ·Permit Memorandum that includes a permit matrix (draft and final versions). ·JARPA (draft and final versions). ·BE (draft and final versions). ·WSDOT/Federal Aquatic Use Authorizations (draft and final versions). ·SEPA Environmental checklist (draft and final versions). SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 10 July 2019 ·Shoreline Exemption package (draft and final versions). Task 7: Bidding Assistance Objective Assist the City in the bid selection process and award of the construction contract. Activities ·Deliver the Bidding Documents to the City. ·Attend the Pre-Bid Conference at the project site. ·Answer questions from Bidders. ·Prepare up to two addenda. Addenda that are required due to consultant errors shall be issued at no cost to the City. Assumptions ·Assumes 42 hours of total effort. ·City will lead the Pre-Bid Conference and provide any documents needed for presentation at the Conference. ·Final Bidding Documents that will be delivered to City under this phase were assembled and provided as a deliverable in the detailed design phase. ·Geotechnical engineering performed to support this task will be managed under Task 11: Geotechnical Support. Deliverables ·Responses to Bidder Questions (via e-mail). ·Two addenda (electronic). Task 8: Services During Construction Subtask 8.1: Services During Construction Objective Provide support to the City’s Project Manager and staff during the construction phase of the project. Activities ·Attend Pre-Construction Conference. ·Review submittals. ·Review Requests for Information (RFIs) and develop and/or modify relevant engineering details. ·Review and provide the City with recommended responses to change order requests. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 11 July 2019 ·Perform site visits on an as-needed basis. Assumptions ·City will lead the Pre-Construction Conference and provide any documents needed for presentation at the Conference. ·Up to 20 hours per month of services for up to a 13-month construction duration. ·Written observation and/or site visit reports are excluded. ·Except for the Record Drawings, as discussed in Task 8.3 below, the Deliverables outlined in the City’s Department of Ecology Agreement for the Construction Management task are provided by others at no cost to Parametrix. ·The Deliverables outlined in the City’s Department of Ecology Agreement for the Construction task are provided by others at no cost to Parametrix. ·The Deliverables outlined in the City’s Department of Ecology Agreement for the Change Order Allowance task are provided by others at no cost to Parametrix. ·Geotechnical engineering performed to support this subtask will be managed under Task 11: Geotechnical Support. Deliverables ·Submittal review sheets. ·RFI and change order responses, and stamped engineering details. Subtask 8.2: Record Documents Preparation Objective Provide project drawings to conform with the Contractor’s construction records. Activities ·Revise CADD drawings to conform with redlines kept by the Contractor during construction. Assumptions ·Parametrix will not verify completeness and accuracy of the Contractor’s redline drawing set. ·This task will be started after Contractor has provided a complete redline drawing set. ·No other record documents besides the Record Drawings will be provided. Deliverables ·One 22”x34” mylar and two 11”x17” bond hardcopy sets of the Record Drawings. ·CADD files for the project, including sheets and base files (x references), submitted via cloud-based file transfer site of City’s choice. ·PDF copies of the Record Drawings submitted via cloud-based file transfer site of City’s choice. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 12 July 2019 Task 9: Project Management Objective Provide oversight, communications, and management of the contract and scope of work. Work includes administrative project support, task order set-up, and subconsultant management. Activities ·Prepare a project schedule. ·Prepare monthly billing review and invoices. ·Participate in project status meetings with the City. ·Conduct subconsultant management and contracting. ·Provide monthly administrative project support (task set-up, filing, communications). ·Update project schedule monthly and provide to City. Assumptions ·Provides up to 26 months of project management services. ·Monthly project status meeting includes one Parametrix staff. ·Subconsultant contracting is limited to two firms (geotechnical services and aerial survey). ·Oversight and review of subconsultant products is included in task-specific budgets. Deliverables ·Baseline Project Schedule. ·Monthly invoices with progress report. ·Monthly project status meeting (one meeting, in person). Task 10: Management Reserve Management Reserve will consist of a specified amount withheld for management control purposes to address unknown unknowns within the scope of the project. Task 10: Management Reserve will only be used upon written authorization of the Owner. Task 11: Geotechnical Support Subtask 11.1: Geotechnical Support for Preliminary Design (30%) Objective Assess slope stability along bluff for key properties and identify potential impacts to proposed sewer improvements. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 13 July 2019 Activities ·Review available site information including geologic maps, LiDAR, 3D survey scans, geotechnical/site information available from permits/City projects along the alignments, as-builts of sewer alignments, and information regarding maintenance history of existing sewer laterals. ·One site visit to observe existing slopes at properties with existing service laterals. ·Provide assessment of slope conditions and potential impacts of existing conditions to the proposed improvements. ·Provide considerations for pipeline improvements along the bluff, such as pipe type and installation methods. ·Summarize observations and conclusions in slope assessment report. ·Provide task management and internal QA/QC. Assumptions ·This work will be performed by a subcontractor (HWA GeoSciences.) ·The site visit will last up to 4 hours on-site plus 2 hours travel time each direction. ·City will lead the coordination effort with residents for site visit and hand borings. ·Any permits required for site access for proposed explorations will be acquired by the City at not cost to HWA or Parametrix. ·Existing information to be reviewed will be provided to HWA by the City and the design team. ·No subsurface explorations to be performed for this assessment. ·Considerations to be provided based on experience for pipelines constructed in similar bluff conditions. ·No geotechnical work plan included. Deliverables ·Slope assessment summary report. Subtask 11.2: Geotechnical Support for Detailed Design (60%, 90%, 100%) Objective Provide geotechnical recommendations for installation of grinder pump, new sewer laterals, and new sewer main. Activities ·Participate in one team meeting to review proposed improvements selected during preliminary design. ·Develop and coordinate site explorations for site evaluation and to provide subsurface data for grinder pumps and laterals for key properties, and sewer main along streets. ·Two site visits, one to mark locates and the second to verify locates have been completed. ·Drill up to 10 hand-borings at selected locations, including one at the proposed grinder pump and the remaining locations determined once preliminary design is completed. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 14 July 2019 ·Complete boring logs and assign testing. ·Develop cross-sections for select sites with laterals on steep slopes. ·Site reconnaissance to evaluate requirements and methods for installation of grinder pump pressure lines. ·Evaluate suitability of installing laterals by horizontal directional drilling versus open cut. ·Provide recommendations for open-cut trenches. ·Provide discussion regarding horizontal directional drilling. ·Provide earthwork and shoring recommendations. ·Summarize site explorations, conclusions, and recommendations for the proposed improvements in a draft geotechnical report. ·Finalize geotechnical report upon receipt of comments from design team. ·Provide input for project specifications. ·Provide task management and internal QA/QC for geotechnical work. Assumptions ·This work will be performed by a subcontractor (HWA GeoSciences.) ·Site access and Street Use permits to be provided at no cost to geotechnical subconsultant (HWA). ·No contaminated materials testing is assumed. In the event contaminated soils appear to be present, HWA will collect samples and contact the Owner/Designer for directions. Deliverables ·Draft and Final Geotechnical Report. Subtask 11.3: Geotechnical Support during Bidding Assistance Objective Respond to questions from Bidders for geotechnical aspects of the project. Activities ·Review and response to questions from Bidders (assume two questions during bidding phase). Assumptions ·This work will be performed by a subcontractor (HWA GeoSciences.) ·City will lead the Pre-Bid Conference and provide any documents needed for presentation at the Conference. ·No addenda included. SCOPE OF WORK (continued) City of Bremerton Oyster Bay Beach Sewer Upgrades 15 July 2019 Deliverables ·Responses to Bidder Questions (via e-mail). Subtask 11.4: Geotechnical Support during Construction Objective Review Contractor submittals and provide consultation to address issues related to geotechnical aspects that arise during construction. Activities ·Review Contractor submittals and RFIs during construction when requested. ·Provide consultation including in-office review and up to two site visits during construction to address issues related to geotechnical aspects that arise during construction. Assumptions ·This work will be performed by a subcontractor (HWA GeoSciences.) Deliverables ·Responses to submittals and summary of site visits (via e-mail). 1 SOW Attachment A - Oyster Bay Beach Sewer Upgrades Sheet Index Drawing Number Sheet Number Title / Description 30% 60% 90/100% General1 G1.1 Cover Sheet D D F 2 G1.2 Legend and Abbreviations D F 3 G1.3 Site Key Map D F F TESC 4 G2.1 TESC Plan D F 5 G2.2 TESC Details D F Horizontal Control 6 G3.1 Horizontal Control 1 D F F 7 G3.2 Horizontal Control 2 D F F 8 G3.3 Horizontal Control 3 D F F 9 G3.4 Horizontal Control 4 D F F Pump Station and Lateral Connection Site Plans 10 C1.1 Pump Station and Lateral Connection Site Plan 1 D F F 11 C1.2 Pump Station and Lateral Connection Site Plan 2 D F F 12 C.1.3 Pump Station and Lateral Connection Site Plan 3 D F F 13 C1.4 Pump Station and Lateral Connection Site Plan 4 D F F 14 C1.5 Pump Station and Lateral Connection Site Plan 5 D F F 15 C1.6 Pump Station and Lateral Connection Site Plan 6 D F F 16 C1.7 Pump Station and Lateral Connection Site Plan 7 D F F 17 C1.8 Pump Station and Lateral Connection Site Plan 8 D F F 18 C1.9 Pump Station and Lateral Connection Site Plan 9 D F F 19 C1.10 Pump Station and Lateral Connection Site Plan 10 D F F 20 C1.11 Pump Station and Lateral Connection Site Plan 11 D F F 21 C1.12 Pump Station and Lateral Connection Site Plan 12 D F F 22 C1.13 Pump Station and Lateral Connection Site Plan 13 D F F 23 C1.14 Pump Station and Lateral Connection Site Plan 14 D F F Plan and Profiles 28 C2.1 Plan and Profile 1 D F 29 C2.2 Plan and Profile 2 D F 30 C2.3 Plan and Profile 3 D F 31 C2.4 Plan and Profile 4 D F Details 32 C3.1 Details 1 D F 33 C3.2 Details 2 D F 34 C3.3 Details 3 D F 35 C3.4 Details 4 D F Total Draft Drawings 20 12 0 Total Final Drawings 0 19 31 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 EXHIBIT B SCHEDULE for Oyster Bay Beach Sewer Upgrades Anticipated Notice to Proceed August 2019 Alternatives Analysis 90 days from NTP Survey, Design, and Permitting 12 months from NTP Bidding Assistance 3-month duration Anticipated start: November 2020 Services During Construction 11-month duration Anticipated start: March 2021 Anticipated Construction Completion January 2022 Contract Completion December 2022 Bremerton/Parametrix Oyster Bay Beach Sewer Upgrades July 2019 EXHIBIT C COMPENSATION for Oyster Bay Beach Sewer Upgrades TASK ESTIMATED COST Task 1: Alternatives Analysis $21,938.86 Task 2: Survey (includes subcontractor) $29,127.10 Task 3: Preliminary Design $76,256.28 Task 4: Detailed Design $108,409.74 Task 5: Outreach $5,668.56 Task 6: Environmental Analysis and Permitting $34,384.86 Task 7: Bidding Assistance $5,704.74 Task 8: Services During Construction $37,768.82 Task 9: Project Management $39,479.86 Task 10: Management Reserve ** $40,000.00 Task 11: Geotechnical Support (includes subconsultant) $27,990.90 Escalation $8,805.58 Expenses $1,471.00 TOTAL ESTIMATED COST $437,006.30 ** Management Reserve to be used only upon written authorization of the Owner. Client: City of Bremerton Project: Oyster Bay Sewer Upgrades Project No: P23318968AT Cedar I. SimmonsJoel S. LinkeBrandon D. MossDrew O. NortonDavid L. DinkuhnConnor R. WittmanDavid M. KopchynskJoshua R. AhmannKatheryn SeckelTrey J. ParryJosh A. WozniakSteve R. KruegerAdam W. MerrillJade L. AustinKristy L. AllinsonSteven N. SharpeRyan M. HandDawn M. DunnJean N. JohnsonNancy K. DonovanKassie N. BabcockProject Manager - Sr EngineerSr EngineerEngineer IIEngineer ISr ConsultantSr Electrical EngineerSr EngineerPlanner IVPlanner IVScientist/Biologist IISr Scientist/BiologistScientist/Biologist IVScientist/Biologist IVSurveyor ISurveyor IITechnical LeadSurvey SupervisorSr Project Control SpecialistSr Contract AdministratorPublications SupervisorProject Accountant$162.23 $176.32 $108.98 $98.51 $222.85 $203.54 $219.73 $135.03 $136.73 $99.16 $184.69 $151.41 $147.49 $77.00 $104.97 $115.13 $139.05 $139.11 $135.77 $123.48 $98.88 Task Description Labor Dollars Labor Hours 01 Alternatives Analysis $21,938.86 158 26 42 82 2 2 4 02 Survey (includes Subcontractor)$29,127.10 138 50 50 30 8 03 Preliminary Design $76,256.28 595 36 127 420 0 8 4 04 Detailed Design $108,409.74 887 4 104 722 0 27 16 14 05 Outreach $5,668.56 42 12 6 12 12 06 Environmental Analysis and Permitting $34,384.86 251 3 4 28 8 14 34 2 100 44 3 11 07 Bidding Assistance $5,704.74 42 6 12 24 08 Services During Construction $37,768.82 310 22 48 200 40 09 Project Management $39,479.86 260 196 0 0 0 30 4 30 10 Management Reserve $40,000.00 11 Geotechnical Support (Subconsultant)$27,990.90 Labor Totals:$426,729.72 2,683 305 343 1476 52 2 27 26 8 14 34 2 100 44 50 50 30 8 33 4 45 30 Escalation Amt:$8,805.58 $1,071.50 $1,617.91 $5,304.62 $163.92 $0.00 $219.82 $140.63 $0.00 $0.00 $0.00 $0.00 $218.03 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $69.15 $0.00 Totals:$435,535.30 $50,551.65 $62,095.67 $166,159.10 $5,286.44 $445.70 $5,715.40 $5,853.61 $1,080.24 $1,914.22 $3,371.44 $369.38 $15,359.03 $6,489.56 $3,850.00 $5,248.50 $3,453.90 $1,112.40 $4,590.63 $543.08 $5,625.75 $2,966.40 Other Direct Expenses Other Direct Costs $1,471.00 Other Direct Expenses Total:$1,471.00 Project Total $437,006 Burdened Rates: SRF Specification Insert 1 Revised 10/24/2014 WASHINGTON STATE DEPARTMENT OF ECOLOGY WATER POLLUTION CONTROL REVOLVING FUND ENGINEERING SERVICES INSERT Revised 10/24/14 The following clauses will be incorporated into contracts for engineering services receiving financial assistance from the Washington State Department of Ecology Water Pollution Control Revolving Fund. In the event of conflict within the contract these clauses shall take precedence Compliance with State and Local Laws The engineering services provider (CONTRACTOR) shall assure compliance with all applicable federal, state, and local laws, requirements, and ordinances as they pertain to the design, implementation, and administration of the approved project. State Interest Exclusion Partial funding of this project is being provided through the Washington State Department of Ecology Water Pollution Control Revolving Fund. Neither the State of Washington nor any of its departments or employees are, or shall be, a party to this contract or any subcontract. Third Party Beneficiary Partial funding of this project is being provided through the Washington State Department of Ecology Water Pollution Control Revolving Fund. All parties agree that the State of Washington shall be, and is hereby, named as an express third-party beneficiary of this contract, with full rights as such. Cost Basis of Contract No contract may be written for "cost-plus-a-percentage-of-cost" or "percentage of construction cost." The cost basis for this contract must be cost-reimbursement, unit price, fixed-price, time and materials, or any combination of these four methods. Funding Recognition Documents produced under this agreement shall inform the public that the project received financial assistance from the Washington State Water Pollution Control Revolving Fund. Washington State Department of Ecology’s and the EPA’s logomust be on all signs and documents. Logos will be provided as needed. Access to the work site and to records The CONTRACTOR shall provide for access to their records by Washington State Department of Ecology and Environmental Protection Agency (EPA) personnel. EXHIBIT D SRF Specification Insert 2 Revised 10/24/2014 The CONTRACTOR shall maintain accurate records and accounts to facilitate the Owner’s audit requirements and shall ensure that all subcontractors maintain auditable records. These records shall be separate and distinct from the CONTRACTOR’s other records and accounts. All such records shall be available to the Owner and to Washington State Department of Ecology and EPA personnel for examination. All records pertinent to this project shall be retained by the CONTRACTOR for a period of three (3) years after the final audit. Certification Regarding Suspension, Debarment, Ineligibility Or Voluntary Exclusion 1. The CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred, proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal government, or from receiving contracts paid for with federal funds. If the CONTRACTOR is unable to certify to the statements contained in the certification, they must provide an explanation as to why they cannot. 2. The CONTRACTOR shall provide immediate written notice to the Washington State Department of Ecology if at any time the CONTRACTOR learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 3. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the Washington State Department of Ecology for assistance in obtaining a copy of the regulations. 4. The CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under the applicable Code of Federal Regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 5. The CONTRACTOR further agrees by signing this agreement, that it will include this clause titled “Certification Regarding Suspension, Debarment, Ineligibility Or Voluntary Exclusion” without modification in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6. Pursuant to 2CFR180.330, the CONTRACTOR is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. 7. The CONTRACTOR acknowledges that failing to disclose the information required in the Code of Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal remedies, including suspension and debarment. 8. The CONTRACTOR agrees to keep proof in its agreement file that it and all lower tier SRF Specification Insert 3 Revised 10/24/2014 recipients or contractors are not suspended or debarred and will make this proof available to the Washington State Department of Ecology upon request. The RECIPIENT/CONTRACTOR must run a search in http://www.sam.gov/ and print a copy of completed searches to document proof of compliance. This term and condition supersedes EPA Form 5700-49, “Certification Regarding Debarment, Suspension, and Other Responsibility Matters.” Disadvantaged Business Enterprises General Compliance (40 CFR Part 33). The CONTRACTOR shall comply with the requirements of the Environmental Protection Agency’s Program for Participation By Disadvantaged Business Enterprises (DBE) 40 CFR Part 33. Non-discrimination Provision (40CFR Appendix A to Part 33). The CONTRACTOR shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The CONTRACTOR shall carry out applicable requirements of 40 CFR part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract which may result in the termination of this contract or other legally available remedies. Six Good Faith Efforts (40 CFR Part 33 Subpart C). The CONTRACTOR agrees to make the following good faith efforts whenever procuring subcontracts, equipment, services and supplies. The CONTRACTOR shall retain records documenting compliance with the following six good faith efforts.  Ensuring Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government recipients, this will include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.gov or by contacting the Washington State Office of Minority and Women’s Enterprises at (866) 208-1064.  Making information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date.  Considering in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, State and local Government recipients, this will include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process.  Encourage contracting with a consortium of Disadvantaged Business Enterprises when a SRF Specification Insert 4 Revised 10/24/2014 contract is too large for one of these firms to handle individually.  Using services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.  If the prime contractor awards subcontracts, requiring the subcontractors to take the six good faith efforts in paragraphs 1 through 5 above. OYSTER BAY BEACH SEWER UPGRADES PROJECT AREA MAP AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Acceptance of the Pedestrian & Bicycle Safety Program Grant; and Approval of the WSDOT Local Agency Agreement for the Naval Avenue (1st to 15th Street) Pedestrian & Bicycle Enhancement Project Study Session Date: July 24, 2019 COUNCIL MEETING Date: August 7, 2019 Department: Engineering Presenter: Shane Weber Phone: (360) 473-2354 SUMMARY: The City has been offered a 2019-21 Pedestrian and Bicycle Safety Program State Funding Grant from WSDOT to perform public outreach and design bicycle and pedestrian enhancements on Naval Avenue from 1st to 15th Streets. The grant amount is $619,400 and requires a City match of $32,600. The project includes pavement resurfacing, bike lanes, boxes, and detection, wider sidewalks, signal timing and phasing, intersection treatments, curb bulbs, wayfinding signage, pavement markings, and storm drainage. The project will evaluate roundabouts at intersections along the corridor. The offered grant will be in WSDOT Standard Forms, with their standard terms and conditions. ATTACHMENTS: 1) Grant Award Letter, 2) Site Plan, 3) Local Agency Agreement (blank); 4) Local Programs State Funding Agreement (blank) Added FISCAL IMPACTS (Include Budgeted Amount): Total project design cost is estimated at $652,000. Total City cost is $32,600 and will be funded by REET. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to accept the Pedestrian and Bicycle Safety Program State Funding Grant and approve the Local Agency Agreement with WSDOT for the Naval Ave - 1st Street to 15th Street Pedestrian and Bicycle Enhancement Project; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 B9 Form Created 5/4/15 INFORMATION ONLY ITEM CITY OF BREMERTON CITY COUNCIL SUBJECT: Discussion of Affordable Housing Initiatives; and Determination of City Council’s Code Amendment Priorities Study Session Date: July 24, 2019 Presenter: Allison Satter (DCD) Phone: 360-473-5845 SUMMARY: The Mayor and City Council have determined that it is important for the City to consider changes to the Bremerton Municipal Code (BMC) in relation to Affordable Housing initiatives. This Info-only session is to present the Assessment of Bremerton’s Affordable Housing Policies and Regulations and receive feedback from the Council on which topics the Administration should prioritize for code amendments. The attached document outlines potential BMC amendments which could allow an increase supply of housing and/or reduce the cost of developing housing. Prior to this Study Session date with Council, the Planning Commission will be discussing this document at their upcoming workshop on Monday, July 15, 2019. After this discussion and receiving public testimony on this document, the Commission will provide a recommendation to City Council on which of the proposed initiatives they find are important for the City to proceed with. This information will be presented to City Council during the Study Session. HANDOUTS:  Assessment of Bremerton’s Affordable Housing Policies & Regulations (July 2019) STUDY SESSION AGENDA: ☐ No Presentation ☒ Full Presentation B10 Assessment of Bremerton’s Affordable Housing Policies & Regulations City of Bremerton Department of Community Development First Release: September 2018 Second Release: July 2019 Table of Contents Purpose Of This Document ..................................................................... 1 Focus ......................................................................................... 2 Established Housing Policies ......................................................... 6 Past Successes & Accomplishments .............................................. 10 Infill Toolkit: Blueprint For Change To Encourage More Infill And Affordable Housing ..................................................................... 11 Summary Of Proposed Topics ...................................................... 12 Topic 1: Revise Densities To Promote Infill ........................... 13 Topic 2: Manufactured Homes ............................................. 17 Topic 3: Accessory Dwelling Units (ADU) .............................. 20 Topic 4: Cottage Housing ................................................... 24 Topic 5: Subdivision Code .................................................. 26 Topic 6: Smaller Housing Options ........................................ 29 Topic 7: Inclusionary Zoning ............................................... 33 Topic 8: General Facility Charges (GFC) Reduction ................ 35 1 Purpose of this document The City has developed this document, Bremerton’s Assessment of Affordable Housing Policies & Regulations, to assist the City in responding to the housing crisis. This document outlines how the City can help our community address affordable housing. This document identifies the current city efforts and vision for affordable housing and identifies promising strategies that the City can consider to help increase affordable housing within the City. Report’s Focus WHAT CAN THE CITY DO TO HELP PROVIDE AFFORDABLE HOUSING? 2 City of Bremerton (July 2019) Focus Why is the City considering affordable housing? “I have made it one of my goals to address affordable housing and have given direction to my administration to implement policies and funding strategies that lead to the creation of more housing for all income levels in the City.” ~Mayor Greg Wheeler, 2018 City Council Goals for 2019 (portion of): Provide Quality Affordable Housing in the following avenues: • Rental Housing Safety Program • Continue connection with Bremerton Housing Authority & Kitsap Community Resources • Explore opportunities with other stakeholders • As a member of the Kitsap Regional Coordinating Council, work collaboratively on County-wide response to Homeless Issues • Consider Zoning Code Changes to encourage the development of affordable housing Report’s Focus 3 City of Bremerton (July 2019) Why is providing affordable housing in Bremerton important? The City should plan for affordable housing for our community because it: • Fosters inclusive and equitable communities. • Provides homes for low and moderate wage workers, which ensures a jobs-housing balance thus less people are spending time commuting. • Supports vulnerable populations such as seniors, and people with disabilities. • Promotes environmental sustainability. The document: ➢ Identifies common terminology for affordable housing, including defining: Deeply Affordable, Workforce, and Market Rate Housing. ➢ Evaluates the affordable housing provisions of the Comprehensive Plan Housing Element. ➢ Reports on code development successes that create housing and how the City has been successful to remove regulatory impediments in the Zoning Code. ➢ Lays out an Infill Toolkit: Blueprint for Change to Encourage More Infill and Affordable Housing. This toolkit identifies Comprehensive Plan and Zoning Code amendments that will encourage more affordable housing. This list will help guide the work plan for 2018, 2019 and beyond. This “Toolkit” contains ideas for code amendments that can contribute to improving the affordable housing issue within our community. Report’s Focus 4 City of Bremerton (July 2019) Common Terminology for Affordable Housing in Bremerton There is no single definition of affordable housing and often there is no common understanding among individuals when the term “affordable” is used. What is considered affordable by a family earning $100,000 per year will be far out of reach for another family that earns only $25,000 per year. The City believes that it is important to establish definitions related to affordable housing so that readers will better understand what is meant when the term affordable housing is used. The City is using three terms to describe housing categories in Bremerton: 1) Deeply Affordable, 2) Workforce Housing, and 3) Market Rate Housing. When the term “affordable housing” is utilized by the City, we are referring to the first two categories, Deeply Affordable and Workforce Housing. The discussion that follows further describes how the City defines these terms. The definition of affordability must be based on Area Median Income (AMI) data that is published annually by the US Department of Housing and Urban Development (HUD), and it is required that the City use the “Bremerton / Silverdale Metropolitan Statistical Area (MSA)” for a lot of information. The unfortunate part about being required to utilize the Bremerton / Silverdale MSA is that it is countywide data. This data incorporates income levels of North Kitsap and Bainbridge Island which both have considerably different demographics than Bremerton. Due to this, we had to determine an appropriate “discount rate” or “Bremerton Factor” to account for the differences in our communities while still utilizing the required data source. Here’s a data comparison from 2018 (the latest data available): Bremerton/Silverdale AMI: $73,026 Bremerton’s AMI: $48,757 Bremerton % of Bremerton/Silverdale AMI: 66.7% What the data above indicates is that the City of Bremerton’s average household makes approximately 33% less than a County (Bremerton/ Silverdale MSA) household. Many State and Federal regulations define low and moderate income households as those that earn as much as 120% of the AMI. In the example above, this could be an annual income as high as $87,631 ($73,026 Bremerton/Silverdale AMI multiplied by 120%) which translates into earning more than $40/hour. When you compare that figure to the City’s AMI of $48,757 it doesn’t seem appropriate to use such high percentages for determining housing affordability because the right income groups in Bremerton will not be served. The City must therefore establish the appropriate percentage points to choose the right breakdowns for Bremerton while still utilizing the required Bremerton/Silverdale MSA data. Report’s Focus: Termin- ology 5 City of Bremerton (July 2019) The following definitions establish the appropriate percentage breakdowns for housing affordability in Bremerton. Please note that the income descriptions are for illustrative purposes only and are based on the available 2018 info previously discussed. • Deeply Affordable Housing shall mean housing for households that have incomes that are at or below 50% of the Bremerton/Silverdale AMI. Based on the data above, this would be an annual income of up to $36,513 ($73,026 Bremerton/Silverdale AMI multiplied by 50%), translating to an hourly income of less than $17/hour. Households falling into this income category are generally residents of below- market rate housing that is often subsidized. • Workforce Housing shall mean housing for households that have incomes that are in the range of greater than 50% to 80% of the Bremerton/Silverdale AMI. Based on the data above, this would be an annual income of up to $58,420 ($73,026 Bremerton/Silverdale AMI multiplied by 80%), and this translates to hourly incomes between $17/hour to $28/hour. Households falling into this income category would likely seek out very small to moderate apartment units or share housing expenses with other individuals or families. • Market Rate Housing shall mean housing for households that have incomes that are greater than 80% of the Bremerton/Silverdale AMI. Based on the data above, this would be an annual income of more than $58,420 ($73,026 Bremerton/Silverdale AMI multiplied by 80%), which translates to more than $28hour. Households falling into this income category may seek apartment units, condominiums, and other homeownership housing. D eeply Affordable Housing = below 50% AMI Workforce Housing = 51% to 80% AMI Market Rate Housing = greater than 80% AMI Report’s Focus: Termin- ology 6 City of Bremerton (July 2019) Established Housing Policies Has the City established any Policies for housing in the City? The Bremerton Comprehensive Plan is the development blueprint for the City. An important chapter of the Comprehensive Plan is the Housing Element which identifies goals and policies that form the foundation of Bremerton’s housing strategy for the future. The goals and policies in this chapter encourages the creation of affordable housing within the city and encourages the development of a variety of new housing options and densities to meet the changing needs of Bremerton’s current and future residents. The discussion that follows highlights the Comprehensive Plan Housing Element’s vision, goals and policies in relation to affordable housing. The entire City of Bremerton Comprehensive Plan (2016) document can be viewed at the City website linked here. • City’s Housing Overarching Vision: To encourage the growth of Bremerton by strategically locating a wide variety of housing types throughout the City in a way that protects the environment and fosters community health. • City’s Housing Goals: H1. Protect and enhance Bremerton’s existing quality housing stock. H2. Encourage the development of a variety of new housing options and densities to meet the changing needs of Bremerton’s residents. H3. Support access to quality and affordable housing for all Bremerton residents. H4. Implement and coordinate strategies that promote public and private efforts to facilitate improvements to the housing stock. This section includes a summary of the Comprehensive Plan’s vision, goals and policies for Affordable Housing Housing Policies 7 City of Bremerton (July 2019) • City’s Housing Policies related to affordable housing: H1(A): Promote preservation of structures in good repair, including establishing incentives that encourage private property owner’s efforts to preserve homes having historical and or architectural significance. H1(B): Support replacement of substandard structures, including encouraging rehabilitation and maintenance of existing housing units; or replacing substandard structures which have excessive rehabilitation costs with new structures. H1(C): Promote, and incentivize, private commitments to improve existing housing stock so that all housing is safe, sanitary, and in good repair. H1(D): Promote financial assistance for essential repairs to substandard structures that provide housing for low and moderate-income persons. H1(F): Promote a robust code enforcement program to protect the safety and aesthetic quality of existing neighborhoods. H2(A): Support the private sector’s efforts to provide a full range of housing options to meet the needs of all ages and demographics. H2(B): Encourage new development to blend with positive characteristics of surrounding neighborhoods. H2(E): Support efforts to provide for a variety of housing options such as: • Emergency group housing, homeless shelters and short term housing to meet the needs of those in the lower income categories. • Promote housing for the special needs of students, particularly in the vicinity of Olympic College. Encourage apartments and dormitories in locations that directly service the college. • Plan for and support episodic surges and reductions in military personnel. Provide opportunities to allow for different housing densities to accommodate the diverse needs of military personnel. • Respond to the special needs of the growing elderly population within the City. Encourage a full range of housing options including retirement housing complexes in all residential zones particularly in areas with direct proximity to services and amenities. Encourage programs which allow elderly to remain in their homes as long as possible. • Provide for integration of special needs housing within the community by allowing for government-assisted housing, housing for low-income families, manufactured housing, group homes, and foster care facilities. Housing Policies 8 City of Bremerton (July 2019) • Encourage construction to meet and exceed ADA standards whenever possible. H2(G): Partner with Community Development Block Grant and other applicable programs and funding sources to encourage removal or abatement of blighting influences in and around residential areas. H3(A): Provide opportunities for the production of new housing for all incomes, ages, and family types through infill by stimulating growth of non- traditional housing types such as townhomes, carriage units, accessory dwelling units, and duplexes in locations where they will seamlessly infill into the fabric of the existing neighborhoods. H3(B): Disperse below market rate, publicly assisted, affordable, and rental housing throughout the City in a way that accommodates Bremerton’s fair share of the Countywide need. Disperse such housing throughout the City to avoid concentrations in any particular area and encouraging development close to employment and public transportation. H3(C): Support increased densities and infill projects and the use of Low Impact Development (LID) techniques and Best Management Practices (BMPs) in order to capitalize on the cost efficiency of utilization of existing utility services. Additionally, encourage maintenance of City services such as sidewalks, bike lanes, parks, and utilities in order to enhance the overall affordability and health of the community. H3(D): Encourage expanded availability of incentives for development within the City such as the Multifamily Tax Exemption, Community Empowerment Zone, Historically Underutilized Business zone, etc. H3(E): Eliminate unnecessary regulatory impediments to the development of affordable housing. The City’s current Comprehensive Plan’s Housing Element addresses affordable housing in many different ways including providing specifics within the vision, goals, and policies. A summary of this element’s direction for affordable housing is: The City wants an increase in quality housing stock for all its current and future citizens, which includes having a variety of housing types. The policies provide further direction on specifics to help us meet this goal. Housing Policies 9 City of Bremerton (July 2019) In 2018, the Mayor and City Council passed a few Comprehensive Plan amendments that support the Comprehensive’s housing objectives (via Ordinance 5363). Those amendments included: • In areas near commercial and mixed-use centers the code was changed to allow more housing types, including allowing duplexes, within the Low Density Residential district. This amendment will help with the transition of residential uses from higher density districts to the low-density residential areas. • Remove the permissible density within the General Commercial district to promote more housing opportunities. • Modify the Medium Density Residential district to allow more development with that district. The revisions included increasing the density from 10 dwelling unit per acre to 18 dwelling units per acre and its associated zoning code changes. Due to the changes in 2018 to the Medium Density Residential district permissible density increase to 18 dwelling units per acre, the Multifamily Residential District maximum density is now be considered for modifications as part of the 2019 Comprehensive Plan amendment docket. The Multifamily Residential District is the City’s high-density residential zone and has a maximum density of 20 dwelling units per acre (just two more units per acre than the Medium Density Residential district). As this is only a minor increase in allowable maximum density from the City’s medium-density residential district, the Planning Commission is currently considering this item for the 2019 Comprehensive Plan Amendments. Bay Vista Housing constructed by Bremerton Housing Authority Housing Policies 10 City of Bremerton (July 2019) Past Successes & Accomplishments In the recent years, the City has seen more construction of residential development. The City has continually made process improvements to encourage more housing within our urban boundaries. The following are initiatives that the City has recently implemented or are in the process of implementing to increase the housing supply: Streamline Subdivision Process Amended Code to allow Administrative decision for Formal Plats instead of City Council as allowed by State Law SB 5674 enacted on July 2017. This has expedited the permit process for subdivisions. Expedite Permitting by adopting the least-stringent thresholds allowed by Dept. of Ecology Recognizing that the Department of Ecology approved higher SEPA thresholds, the City adopted the highest levels allowed by State Law. This increase results in expedited permit review process. Allow Residential ground floor commercial space to be used as housing until demand increases Amended the District Center Core development standards to allow phased-in mixed-use development. This allows housing to be created on the ground floor, occupying spaces that might otherwise be vacant commercial space. Allow more housing in LDR and increase MDR density (passed Dec 2018) Increasing the density of Medium Density Residential from 10 dwelling units per acre to 18 du/acre. Allows duplexes in Low Density Residential zones if within 500’ of a center or commercial district. Remove permissible density in the General Commercial zone. Supports Modular Development The City supports new types of construction, including modular buildings, and tries to think outside the box while still requiring compliance with Code. 2016 Comprehensive Plan Update Remove complicated density calculation for subdivisions which prohibit the creation of infill lots. Up-zoned residential neighborhoods including Lebo, Perry/Sheridan, Anderson Cove areas which recognizes the built environment and encourage redevelopment and new single-family homes, duplexes and townhomes (reduced nonconformities). Removed unnecessary regulatory approval for many uses to encourage development, such as changing a “Conditional Use” process to an “outright allowed”. Revise High Density Residential In progress, as of July 2019, the City is considering options to increase the Multifamily Residential district including increasing the permissible density. 11 City of Bremerton (July 2019) Infill Toolkit: Blueprint for Change to Encourage More Infill and Affordable Housing This toolkit identifies potential amendments that can be made to the City’s Comprehensive Plan and Zoning Code (Bremerton Municipal Code, Title 20) to increase housing supply and increase opportunities to create affordable housing. This toolkit was developed by studying commonly-used housing tools and out-of-the-box suggestions. The City has concluded one thing from the research about affordable housing: there are no magic bullets. The community must be willing to think creatively and to experiment to see what works and what does not. The City is committed to considering and adopting appropriate recommendations in this toolkit, through the public process: Planning Commission Recommendation (including workshops and public hearing) to the City Council Public Hearing. At the same time, if it becomes apparent that a policy or program is not working to support affordable housing, the City should be prepared to change course quickly by abandoning ineffective strategies and adopting new policy measures appropriate to current circumstance. This document describes the concepts that the City is considering to increase the housing supply. The City believes that by removing impediments and unnecessary code requirements it will reduce the cost of development. These potential amendments focus on increasing the housing supply for the Workforce Housing and Market Rate Housing within the City of Bremerton. As the laws of supply and demand dictate, to increase the housing supply to match the housing demand, the housing cost should decrease and more people should have opportunity for affordable living. It should be noted that this toolkit was not designed to address Deeply Affordable Housing, which typically requires public funding for subsidy housing. The City is working on proposals to assist in deeply affordable housing that is formalized through a different process outside the changes of the Comprehensive Plan and Zoning Code, see Mayor Wheeler’s Webpage for more information. To stay involved with the progress, please sign up for the Bremerton’s “Department of Community Development’s (DCD) eNews” on the city’s website and follow the Planning Commission’s agenda. Infill Toolkit Summary 12 City of Bremerton (July 2019) Summary of Proposed Topics The following is a list of the potential topics to consider Affordable Housing: Topic Status of Potential Amendment Topic #1: Revise Density for Infill Adopted by City Council in December 2018 (Ord # 5363 & 5364) 1.1) Revise General Commercial Density 1.2) Modify Medium Density Res 1.3) Revise Low Density Res Allowed Uses 2) Revise Manufactured Homes Pending 3) Accessory Dwelling Unit Pending 4) Cottage Housing Code Pending 5) Re-evaluate Subdivision Code Pending 6) Smaller Housing Options Consideration Pending 7) Inclusionary Zoning Pending 8) General Facility Fee Reduction Pending 13 City of Bremerton (July 2019) Topic 1: Revise densities to promote infill City Council passed amendments related to these amendments in December 2018 via Ordinance Numbers 5363 & 5364. The following information is the original thoughts on why the City should consider the changes. To see additional information on the progression of these amendments, please review the City Council and Planning Commission packets. It is assumed that units of the future may be much smaller than they currently are today. For example, two units in the future may fit into the same square footage that was previously used for one unit, and outward appearance of the two conditions could be identical. The emphasis in the Comprehensive Plan should be setting minimum density expectations and the form/size that the buildings should be. Summary: Status: Topic #1: Infill and Density amendments COMPLETED ✓ Amend the Comprehensive Plan and Zoning Code to promote infill development. Including: • Remove maximum density requirement in commercial zones that allow residential (such as General Commercial); • Modifying Medium Density Residential density; and • Allow more housing types within the R10 zone (in certain areas) including duplexes and townhomes Review Status: Pending ☐ In-review ☐ Completed ☒ Planning Commission: Workshops - May, July, Sept 2018 Public Hearing - Oct 2018 City Council: Public Hearing December 2018 (Ord Nos 5363 & 5364) Infill Toolkit Topic #1: Infill & Density Passed via Ord Nos 5363 & 5364 14 City of Bremerton (July 2019) To revise densities, Comprehensive Plan and Zoning Code amendments are required. The City will consider each zone and appropriate density in the context to affordable housing. There are three possible amendments to the codes (topics 1.a, 1.b and 1.c): Topic 1.a: Modify Medium Density Residential to change from 10 dwelling units per acre (du/ac) to 18 du/ac making it truly medium density in nature and not the same density as Low Density Residential. Current Code and consideration for 1.a: Since the major Comprehensive Plan update in late 2004, the majority of the City has been zoned Low Density Residential which allows one single-family home per lot. As a response to the frustration heard from staff from property owners who struggle to do major updates to their nonconforming “World War II” duplexes, a major Comprehensive Plan update in 2016 created a Medium and High Density Residential zones to allow duplexes and townhomes (Medium Density) and multiplexes (High Density) back into the Zoning Code to encourage redevelopment for quality housing and to reduce nonconforming uses. The 2016 update to create Medium Density Residential zones allowed duplexes and townhomes in some residential neighborhoods (Lebo, Sheridan/Perry, and Anderson Cove) to reduce nonconformities and to encourage redevelopment and infill opportunities. However, as allowing duplexes/townhomes was a substantial change from the 2004 Comprehensive Plan which primarily only allowed single-family homes, the proposal maintained the same Low Density Residential zone density of 5 to 10 dwelling units per acre. The City should consider amendments to the Medium Density Residential neighborhood to allow density (maximum 18 dwelling units per acre) that is consistent with typical medium density development. In addition, this density is consistent with Kitsap County’s medium density residential zone. Possible Code Amendments for 1.a: Amend the Comprehensive Plan and Bremerton Municipal Code to allow up to 18 dwelling units per acre in the Medium Density Residential zone. Topic 1.b: Ensure policies within Low Density Residential allows all housing types, including duplexes and townhomes, as long as 10 dwelling units/acre isn’t exceeded. Current Code for 1.b: In the 2004 major Comprehensive Plan update, a goal in residential neighborhoods was to promote only single family construction. A primary concern or the community was a need to reduce rental properties throughout the City. However the City now has a lack of housing supply due to the last decade’s impacts: the great recession slowdown and now the region’s booming growth in Seattle. As such, the City Infill Toolkit Topic #1: Infill & Density Passed via Ord Nos 5363 & 5364 15 City of Bremerton (July 2019) should consider options to increase the housing supply. This would support the Comprehensive Plan policy to “H3(A): Provide opportunities for the production of new housing for all incomes, ages and family types through infill by stimulating growth of non-traditional housing types such as townhomes, carriage units, accessory dwelling units, and duplexes in locations where they will seamlessly infill into the fabric of the existing neighborhoods.” Additional design criteria may be appropriate to consider with this amendment or allow such uses in neighborhoods that are already developed with multiunit buildings or near the edges of dense districts (like Center or commercial districts) to transition into the Low Density Residential primarily single family neighborhoods. Possible Code Amendments for 1.b: Amend the Comprehensive Plan and Bremerton Municipal Code to allow duplexes and townhomes within the Low Density Residential zone, provided the underlying density (5 to 10 dwelling units per acre) is met and with additional code provisions to ensure it fits into neighborhood and community vision. Topic 1.c: Remove maximum density requirements from Commercial and Mixed Use (Centers) land use districts. Use more performance basis (building heights, setbacks, lot coverage, etc.) to regulate building form and size. Current Code for 1.c: The following are the maximum densities in the Bremerton Municipal Code identified in our Commercial and Center zones: • General Commercial has a maximum and minimum density of 30 units per acre. • No maximum density for the following zones: District Center Core (DCC), Neighborhood Business (NB), Employment Center (EC), and Institutional (Inst). Possible Code Amendments for 1.c: Amend the Comprehensive Plan and the Bremerton Municipal Code’s General Commercial zone to remove the density and review the revised zone to verify that development and design standards are appropriate to minimize impacts to adjacent neighborhoods. Considerations and other resources: Local governments use infill to promote the development of vacant land, or rehabilitation of existing structures, in already urbanized areas where infrastructure and services are in place. Infill is encouraged by the City because: • As the largest city in Kitsap County, Bremerton is a relatively built City especially near the urban centers (Downtown, Charleston, Manette, and Wheaton Way). Infill development can assist built communities to encourage reuse of properties that may have been underutilized or vacant. Infill Toolkit Topic #1: Infill & Density Passed via Ord Nos 5363 & 5364 16 City of Bremerton (July 2019) • Infill housing encourages a City atmosphere and represents an effective way to meet a jurisdiction’s affordable housing and/or population growth needs. • Responds to regional policies calling for shift of populations nearer to employment and transportation centers • Supports social equity by providing convenient access to jobs, and reducing the reliance on the automobile. • Makes the best use of urban infrastructure. Located in proximity to existing transit routes or within walking distance of services, parks, and entertainment, infill development can reduce auto use and accompanying congestion and pollution. • Helps conserve Kitsap County’s forest, agricultural and resource lands. Infill development is an important smart growth strategy for regional equity. Infill development is not, however, always a developer’s first choice. Challenges associated with infill include small, scattered nature of many infill parcels, complex title issues, outdated infrastructure serving the infill site, and environmental contamination. For these reasons, urban infill is often bypassed by developers for cheap, readily available suburban land that is often referred to as “greenfield development”. Current State Law Changes: Lastly, infill is not just a topic as the local level, but the Washington State legislators have been working on adopting state law to assist in the housing crisis. Effective July 1, 2019, House Bill 1923 was adopted to “increase urban residential building capacity.” This bill encourages jurisdictions to increase opportunities for more housing including density and infill opportunities (especially in areas close to mass transit). In addition, this State Bill also requires that the City identify the current housing market within our jurisdiction for all income levels and incorporate that into the Comprehensive Plan. The City recently has partnered with Kitsap County Community Block Grant to develop this information for the County and our City. Infill Toolkit Topic #1: Infill & Density Passed via Ord Nos 5363 & 5364 17 City of Bremerton (July 2019) Topic 2: Manufactured Homes Please note that this topic has been reviewed by Planning Commission in March and April 2019. Click here to see the Planning Commission packets (March and April 2019 packets) for further discussion on these potential amendments, including further information on the difference from a Manufactured Home, Modular Homes, and Prefabricated Homes. America’s affordable housing crisis is driven in large part by the simple fact that there aren’t enough homes in America right now to satisfy demand. High construction costs and labor shortages mean builders can’t build fast enough to keep up with household formation, and Americans who already own homes are reluctant to sell an asset that is appreciating rapidly. Previously referred to as mobile homes, manufactured houses are built in a factory, transported to a site on a truck, and installed on-site. Not to be confused with prefab homes, which have parts made in a factory but are mostly constructed on-site, manufactured homes cost as little as $45,000, a mere fraction of the median price for a new single-family site-built home of $323,000. The proposed amendments could promote the construction of more manufactured homes within Bremerton. Summary: Status: Topic #2: Manufactured Homes Pending/In-review Explore options to amend the code to promote new construction of manufactured homes. Including: • Reducing the minimum size a Manufactured Home may be to fit on more lots throughout the City Review Status: Pending ☒ In-review ☒ Completed ☐ Planning Commission: Workshops – Mar 2019 Public Hearing – Apr 2019 City Council: Pending public hearing (not scheduled) Infill Toolkit Topic #2: Manu- factured Homes 18 City of Bremerton (July 2019) Current Code: BMC 20.46.040 regulates the placement of manufactured homes: • A manufactured home is regulated like a single-family home with some additional design standards: o Must be a new manufactured home as approved by Washington State Department of Labor and Industries and U.S. Department of Housing and Urban Development. o One manufactured home is allowed per lot in a residential zone, unless approved from a manufacture home park (which requires a conditional use permit and a minimum of 2-acres to construct said park). o Must be set on a permanent foundation and the space between the ground and the unit must be enclosed. o Exterior siding is similar in appearance to materials commonly used on single-family homes. o Must be constructed of two (2) fully enclosed parallel sections each not less than twelve (12) feet wide by thirty-six feet long. State Law: The State of Washington welcomes manufactured housing since it is an inexpensive way for families to obtain affordable housing which would otherwise not exist. While the State has many laws and regulations that govern the installation of manufactured housing, one important law is the prohibition against local governments passing ordinances that would be more restrictive than those applicable to site-built homes. This means that manufactured housing cannot be discriminated against by the passing of any restriction that would place the manufactured home in a difficult situation which a site-built home would not encounter. To assist in applying the State laws, the State has defined what a manufactured home is, and the requirements for a "designated manufactured home" is provided for in RCW 35.63.160 (which is very similar to the City’s current code for regulating manufactured homes). A "designated manufactured home" is a home that includes at least two sections. While the State Code defines a “designated manufactured home,” local jurisdictions can Existing manufactured homes at Sylvan Pines, Bremerton Infill Toolkit Topic #2: Manu- factured Homes 19 City of Bremerton (July 2019) regulate "single-wide" manufactured homes through additional code provisions. Possible Code Amendments: The following are possible Code amendments that the City is considering to promote the construction of manufactured homes: (1) Revise the size that the manufactured unit can be to recognize current construction of manufacture homes. The potential proposal could allow two (2) fully enclosed parallel sections each not less than nine (9) feet wide by thirty-six feet long. a. A single unit manufactured home would still be prohibited, but this revision would allow a smaller double-wide manufactured home. Here is an interesting resource about this topic: • MRSC’s Local Land Use Regulation of Manufactured Housing Infill Toolkit Topic #2: Manu- factured Homes 20 City of Bremerton (July 2019) Topic 3: Accessory dwelling units (ADU) An accessory dwelling unit (ADU) is a small, self-contained residential unit built on the same lot as an existing single family home. ADUs may be built within a primary residence (e.g., basement unit) or detached from the primary residence. They can be an effective way to add variety and affordable rental housing stock to existing single family neighborhoods. Current Code: BMC 20.46.010 regulates ADUs within the City of Bremerton. To summarize, the current code requires: • One ADU per lot and the size must be subordinate to the principal unit (renderings of different ADUs is provided at the end of this analysis) • The property owner must live onsite (in ADU or primary home). • Additional design criteria is required for ADU construction. Summary: Status: Topic #3: Accessory Dwelling Units Pending The City should try and encourage the development of more ADUs. Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Infill Toolkit Topic #3: ADUs 21 City of Bremerton (July 2019) • To establish an ADU, minimum of three paved parking spaces shall be onsite to accommodate the two units (principal house requires two spaces and the ADU needs one space). Possible Code Amendments: Amend the Bremerton Municipal Code regulating ADUs to try to encourage the construction of more ADUs. Staff is recommending considering a range of different options, including considering to either removing the owner occupied requirements or relaxing the design standards. Considerations and other resources: Accessory dwelling units add variety and housing choice in single family neighborhoods. Units are generally smaller than traditional single family homes or appear subordinate to the primary unit such as a basement apartment. In addition to adding different sizes and forms of housing, ADUs can be a great option for allowing residents to age in place or live with or near family and caregivers, providing a flexible way to address family needs for additional housing. In expensive single family dominated areas, accessory dwelling units can also provide affordable housing choices. The code requires that an ADU be constructed smaller than the primary home on the property, and the smaller size could reduce the rental price of the unit. Monthly rent of the unit would likely be lower than a mortgage payment for a house in the same neighborhood. Depending on how the ADU is constructed, residents may be able to share utility costs with the primary residence. For example, if the unit is attached to the primary residence, utility costs may be lowered by the simple efficiency of shared walls or sharing water and sewer meters for both units. For homeowners, an ADU can be an additional source of income for property owners, offsetting the cost of home ownership. Accessory dwelling units are a way to create infill housing and add density to single family neighborhoods without compromising the character or design of a community. ADUs can help jurisdictions achieve housing goals by providing density with an alternative approach to apartment complexes. Washington cities and towns with populations greater than 20,000 are required to plan for ADUs in single-family zones (RCW 43.63A.215). Many cities in the area that already allow ADUs have been interested in revisiting their ordinances to expand their application. ADUs are particularly helpful in providing new housing options in cities or neighborhoods that are already built out, including Bremerton, or where the character is to remain single family in design but with increases to density. Accessory dwelling units are excellent tools for adding housing choices in centrally located residential zones. Encouraging units in neighborhoods near transit, shopping and other amenities can provide additional affordability and convenience from reduced transportation costs. ADUs are also effective in Infill Toolkit Topic #3: ADUs 22 City of Bremerton (July 2019) rural areas, providing people who work in agricultural or isolated areas with opportunities to locate nearer to their job, without having to purchase a home or large tract of land. How many ADUs has the City of Bremerton recently permitted? In the last 14 years, the City has approved the construction of 33 units. The City averages about two additional ADU units per year. The following are the year and how many ADUs were permitted. • 2019 = 1 issued • 2018 = 2, and 2 issued • 2017 = 1 • 2016 = 4 • 2015 = 2 • 2014 = 3 • 2013 = 2 • 2012 = 0 • 2011 = 1 • 2010 = 2 • 2009 = 1 • 2008 = 5 • 2007 = 4 • 2006 = 1 • 2005 = 2 Can the City regulate how many people live in ADUs? Staff has had an inquiry about limiting the occupant load of small units to ensure that overcrowding does not happen. The International Property Maintenance Code (2015), which is adopted and enforced by the City, already regulates occupancy limits for residential units (Section 404) for health and safety purposes. Has the City reduced the cost of hooking to sewer & water for ADUs? In 2015 the City Council approved a new method for assessing Sewer & Water General Facility Charges that were based on plumbing fixture quantity to water and sewer assessments based on the size of the water meter. This new method has eliminated the Water and Sewer General Facility Charges being applied to ADU for a cost savings to the homeowner in the amount of $16,500 as long as the homeowner utilize their existing connections from the main house. Infill Toolkit Topic #3: ADUs 23 City of Bremerton (July 2019) What other jurisdictions has the owner-occupied requirement? The existing regulations require homeowners with an ADU to reside in either the principal or the accessory unit. Part of this update will be deliberating if the owner occupied requirement should be removed, or revised. This amendment could provide property owners greater flexibility to decide how and whether to rent their units, will remove a potential barrier to ADU construction, and potentially increase the number of quality housing units available. The following is a chart of other jurisdiction’s and how they regulate ADU ownership: Jurisdiction Required to be Owner Occupied? Bremerton Yes Bainbridge Island No Port Orchard Yes Poulsbo Yes – 6 months Kitsap County Yes – 6 months Gig Harbor Yes Tacoma Yes Everett Yes Shoreline Yes Olympia Yes Seattle Yes Lacey No Tumwater No Thurston County No Portland, Oregon No Here is an interesting resource about ADUs: • Jumpstarting the Market for Accessory Dwelling Units: Lessons Learned from Portland, Seattle and Vancouver, Karen Chapple, et.al. Urban Land Institute – San Francisco Chapter 2017. ADUS can take different forms: Infill Toolkit Topic #3: ADUs 24 City of Bremerton (July 2019) Topic 4: Cottage Housing Cottage housing developments are groupings of small, attached or detached single family dwelling units, often oriented around a common open space area, and developed with a coherent plan for the entire site. Cottage housing is typically built as infill development in established residential zones and can provide increased density, diversity and a slightly more affordable alternative to traditional detached single family housing. Current Code: City codes is silent about cottage housing, though it could be done with a subdivision process where typically each house is on its own lot, however this can be very cumbersome permit process Possible Code Amendments: Amend the Bremerton Municipal Code to allow cottage housing that meets the underlying zoning density for infill Summary: Status: Topic #4: Cottage Housing Pending The City should consider adopting a cottage housing code. This would allow multiple units within a smaller building footprint. Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Infill Toolkit Topic #4: Cottage Homes 25 City of Bremerton (July 2019) development. Provide protections to neighborhood to mitigate potential impacts, such as parking, consolidated garbage pick-up, and other such impacts. Considerations and other resources: Cottage Housing, once considered an innovative housing option, has gained popularity in the past decade and can now be found throughout the U.S. and the Puget Sound region; examples of cottage housing ordinances and developments can be found in Redmond, Langley, Shoreline, Edmonds, and Seattle. In these instances, cottage housing is allowed in several zones, so long as sewer and water are available. Cottage housing is a critical component of a diverse and robust range of housing options, and should be available to current and future residents of Bremerton. It can add to the supply of housing with minimal use of scarce land, as well as increase the diversity of housing types within the City. Cottage housing will serve a segment of the City’s population that is increasing – single person households, couples without children, and older people who want smaller homes located near required services. Healthy communities recognize the importance of offering a full range of housing diversity that accommodated all income levels, including its less affluent citizens. Cottages provide a way to trade quantity of space for quality of space. Pair a new cottage housing ordinance with education and outreach strategies that promote understanding of the program. As cottage housing is generally built by private developers, development interest in Bremerton is essential to this strategy’s success. Be sensitive to creating an overly burdensome approval process, which can discourage interest. Although cottage homes are smaller units, they may not necessarily be less expensive for the developer to construct. Common ownership of open space or single ownership of smaller lots may make the units more affordable in markets with high land values. Combining incentives like density bonuses with this strategy may also be helpful in making the homes affordable to lower income households. • MRSC – Cottage Housing Overview: http://mrsc.org/Home/Explore- Topics/Planning/Specific-Planning-Subjects,-Plan-Elements/Cottage- Housing.aspx Infill Toolkit Topic #4: Cottage Homes 26 City of Bremerton (July 2019) Topic 5: Subdivision Code Consider options to improve the subdivision code including reducing the regulatory impediments, and/or considering new platting ideas. All changes should continue to support property rights while protecting the public health, safety and general welfare of the community. The creation of more lots, will produce more land and opportunities for the construction of homes. Summary: Status: Topic #5 Subdivision Code Pending The City should evaluate our subdivision regulations to encourage infill development Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Infill Toolkit Topic #5: Sub- division Code 27 City of Bremerton (July 2019) Current Code: The Bremerton Municipal Code regulates subdivisions pursuant to 20.12. City Subdivisions include Short Plat (9 or fewer lots), Formal Plats (10 or more), and Binding Site Plans (commercial subdivision). In addition to the typical subdivision, the City does allow for Residential Cluster Development (RCDs) pursuant to BMC 20.58.060 which is a subdivision that accommodates urban densities of the underlying zone while allowing the residential development to use up less land (more details below). Possible Code Amendments: Amend the Bremerton Municipal Code to encourage more subdivision of land as this can assist in adding units to the housing stock. Specific amendments being considered are: (1) Residential Cluster Development – consider revising to have a broader applicability than just critical areas. (2) Implement “Unit Lot” subdivisions which is currently not permitted within our code. Considerations and other resources: The current regulatory environment can make building a range of housing types increasingly difficult, if not altogether impossible, in many areas. Subdivisions create new lots that can help support additional housing and encourages homeownership. The following outlines possible code amendments to help facilitate subdivisions. Residential Cluster Development. Cluster development is a land development design tool that provides a means of both preserving open space and allowing development to be directed away from critical areas. The proposed changes include considering options to incentivize RCD infill, or broadening the applicability beyond sites encumbered by critical areas. An example (small scale for explanation) is a one acre lot in the R10 zone, uses an RCD to subdivide. The R10 zone allows 10 dwelling units per acre, however, the subject parcel has 70% encumbered by a stream and its associated buffers. By using the RCD, the applicant can request the underlying zoning density (the 10 dwelling units for their 1 acre parcel) to be located on the area not encumbered by open spaces (therefore the ten new homes/lots would be located on 0.3 acres, the area not Infill Toolkit Topic #5: Sub- division Code 28 City of Bremerton (July 2019) dedicated to open space). The open space can include natural and historic resources, woodlands, and recreational facilities such as a community garden or private playground. To facilitate a good design and to accommodate the reduction in area for the infill development, the RCD allows modifications from the underlying zoning including for lot width and size, setbacks, and type of development (duplexes and townhomes are allowed even in single- family zones). However, there are also conditions to protect the neighboring lots, such as requiring a perimeter setback where no structures or parking can be located within 10’ from exterior boundary of the entire property to be subdivided and requiring the open space to be dedicated in perpetuity. Unit Lot Subdivisions. Unit lot subdivision allow for the creation of lots for types of housing development, while applying only those site development standards applicable to the parent site as a whole, rather than to individual unit lots (underlying density would still need to be met). This option of subdividing provides buyers with a more affordable option to condominiums, which have become difficult, if not impossible, to build and finance. Allowing unit lot ownership for appropriate developments will improve the likelihood of construction financing for a given project and will incentivize the creation and purchase of new higher-density housing in areas of the City designated for such developments while maintaining the City’s building standards and regulatory oversight for these developments. Currently the City code does not specifically allow Unit Lot Subdivisions, but other jurisdictions have adopted Unit Lot Subdivisions ordinances including: Seattle, Snohomish County, Everett, Redmond, Spokane, Wenatchee, and Edmonds. Infill Toolkit Topic #5: Sub- division Code 29 City of Bremerton (July 2019) Topic 6: Smaller housing options With the City is focusing on addressing affordable housing, many out-of-the- box ideas were mentioned to the City including inquiries about how the City regulates housing that is not specifically address in the Zoning Code. This housing includes Single Room Occupancy, microapartments, and tiny homes. Summary: Status: Topic #6: Smaller Housing Options Pending The City should consider amending the code to recognize different style of development including, Single Room Occupancy, microapartments, and tiny homes. Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Infill Toolkit Topic #6: Small home options 30 City of Bremerton (July 2019) Current Code: The Bremerton Municipal Code does not specifically identify Single Room Occupancy, microapartments, and tiny homes, however, if a developer asked to do this development it may be allowed by the code, though not specifically stated. Tiny Homes. Though the Zoning Code does not specifically allow Tiny Homes, Tiny Homes are permitted as the City identifies them as a small residence. Therefore any residential lot in the City may outrightly construct a Tiny Home as their primary residence or an ADU. The reason that Tiny Homes are not being widely constructed throughout Bremerton is because the same standards apply if you are placing a Tiny Home or a 3,000 square foot home. Those standards include: two paved parking spaces per unit (one space if it’s an ADU), it must be on a permanent foundation (cannot be on wheels), and in single family zones (Low Density Residential) only one home is permitted onsite unless it is constructed as an ADU. Please note that though Tiny Homes are allowed by City Code, pursuant to the International Residential Code (IRC), a tiny home less than 260 square feet cannot be a primary residence. Per the IRC, 260 square feet does not permit enough area to provide living, sleeping, and cooking and bathroom facilities. However, early next year, the IRC will be releasing Tiny Home regulations to allow primary residence less than 260 square feet. The City will be following that change through the Federal process for adoption, to the State, and then adopted by the City (anticipated in 2020/21). Therefore, at this time, no jurisdiction can permit a primary residence less than 260 square feet. On a side note, tiny homes regulations are relaxed when establishing the tiny home as an ADU; the ADU tiny home may be less than 260 square feet. Tiny homes could also be incorporated with the “cottage housing” provisions if they are adopted. Recent State Law changes: Washington State has recently adopted Senate Bill 5383 in 2019 about Tiny Homes. Changes to the State law include adding code to the International Building Code and limitations to local zoning ordinances for the placement of a tiny home community. These revisions will be considered when updating the Code to consider Tiny Homes. Infill Toolkit Topic #6: Small home options 31 City of Bremerton (July 2019) Single Room Occupancy. Single room occupancy (more commonly abbreviated to SRO) is a form of housing aimed at residents with low or minimal incomes in which, typically, single rooms without amenities such as kitchens, toilets or bathrooms, are rented out as permanent residence to individuals, within a multi-tenant building with shared kitchens, toilets or bathrooms. A college dormitory or boarding house is an example of a single room occupancy. Though the code does not specifically allow “Single Room Occupancy” the code does allow similar uses, just categorized differently: • Within Low and Medium Density zones, that typically only allow single- family like structures (not apartments or multi-tenant building), “Group Residential Facilities” are allow which permits a residential home in which a person(s) provide personal care, special care, room and board to more than 1 but not more than 6 children and/or adults who are not related by blood or marriage to the person providing the service (more than 6 people in a home would be classified as a “Group Residential Facility-Class I” and requires a Conditional Use Permit to be established). As it is intended to act and feel like a residential home, this typical comes with a resident getting their own room with shared cooking and/or bathroom facilities. • Within High Density Residential, Commercial and Center zones, “residential uses of all types” are typically allowed, therefore, a proposal for a multi-family structure that was constructed as a single room occupancy would be allowed. However, with all development, all other requirements need compliance including providing off-street parking, which is described as every two beds requires a parking space to be provided (as some rooms may contain multiple beds (“double occupancy rooms”)). Staff may want to re-evaluate the group residential facility definition to make sure there is compliance with the Fair Housing Act. Microhousing, also called apodments, typically features small sleeping rooms (usually under 300 square feet) with private bathrooms and units grouped together in arrangements of up to 8, with a shared kitchen or common area. These units are generally less expensive than standard studio or 1-bedroom apartments. This type of housing is targeted at young, single professionals in their 20s and 30s. As stated above for Single Room Occupancy, the Zoning Code allows “Residential Uses of all types” therefore this type of use would be allowed within the code. Possible Code Amendments: As the City’s Code currently allows Tiny Homes, Microhousing and Single Room Occupancy, no substantial amendments are proposed at this time, but Staff should continue to consider/research other housing options to keep the City’s Zoning Code up to the changing times. Also, for the next few years, the City should follow the Infill Toolkit Topic #6: Small home options 32 City of Bremerton (July 2019) Tiny Home Code Amendments within the International Residential Code and adopt the amendments when they become available to the City. Considerations and other resources: Here are additional resources to consider Tiny Homes, Single Room Occupancies, and Microhousing. • MRSC’s Tiny Homes: Coming to a Neighborhood Near You? (2015) • City Lab’s article: When America’s Basic Housing Unit was a Bed, Not a House (2018) • MRSC’s Regulating Group Homes in the Twenty First Century: the Limits of Municipal Authority (2013) • MRSC’s Group Homes Overview • MRSC’s Is Your Community Ready for Micro-Housing? (2014) Example of Micro-housing in Seattle Infill Toolkit Topic #6: Small home options 33 City of Bremerton (July 2019) Topic 7: Inclusionary zoning Consider inclusionary zoning within the City of Bremerton code. Inclusionary zoning is an affordable housing tool that links the production of affordable housing to the production of market-rate housing. Current Code: The Bremerton Municipal Code does not specifically identify inclusionary zoning. Summary: Status: Topic #7: Inclusionary Zoning Pending The City should explore options for inclusionary zoning. Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Example of Seattle’s Inclusionary Zoning Program Infill Toolkit Topic #7: Inclu- sionary Zoning 34 City of Bremerton (July 2019) Possible Code Amendments: Amend the Bremerton Municipal Code to utilize inclusionary zoning to incentivize the development of more affordable homes. A possible incentive could be to allow an increase in maximum height within certain zones (including the District Center Core (Wheaton Way Corridor and Charleston) and General Commercial zones) if the development provides affordable residential units. Considerations and other resources: Some local jurisdictions have adopted inclusionary zoning policies that require or encourage developers to set aside a percentage of the units in housing developments for low- and moderate-income residents. Most inclusionary housing programs offer density bonuses or other incentives to offset the developer's project costs and compensate for providing affordable units, which may otherwise yield reduced profits. This approach enlists private sector help in contributing to the affordable housing supply, and reduces segregation of affordable and market-rate housing. Here is an example from Municipal Research Services that describes affordable housing options including “Inclusionary Zoning.” • MRSC – Affordable Housing Overview: http://mrsc.org/Home/Explore- Topics/Planning/Specific-Planning-Subjects,-Plan-Elements/Affordable- Housing-Ordinances-Flexible-Provisions.aspx Infill Toolkit Topic #7: Inclu- sionary Zoning 35 City of Bremerton (July 2019) Topic 8: General Facility Charges (GFC) Reduction Water and sewer connection charges include General Facility Charges (“GFCs”). The GFC is based on a blend of past and planned capital investments in the utility system – the premise is that new customers will pay for growth-related costs the utility has, or will incur to provide system capacity for new customers. However, GFCs can be waived, reduced, or deferred for affordable housing per RCW 35.92.380. Any waiver, fee reduction, or deferral must be pursuant to an adopted ordinance. Summary: Status: Topic #7: GFC Evaluation Pending The City should explore options of reducing General Facility Charges for utility infrastructure when providing affordable housing. Review Status: Pending ☒ In-review ☐ Completed ☐ Planning Commission: Pending City Council: Pending Infill Toolkit Topic #8: General Facility Cost 36 City of Bremerton (July 2019) The City could consider the option to reduce GFCs, as these connection charges can be substantial, a significant cost for any housing project (including multifamily or single family development). As of 2019, if a new single-family home was placed on an undeveloped lot in Bremerton, there is a cost for hooking up to sewer and water of about $16,500 per unit. Considering reducing some of the GFCs could help reduce the cost of housing. There are multiple cities who have already adopted codes to reduce such cost and they are: • Puyallup – PMC 14.10.020 • Bellingham – BMC 15.08.230, 15.12.170 and 15.16.040 • Ephrata – EMC 13.08.050 • Port Townsend – PTMC 13.03.110 Infill Toolkit Topic #8: General Facility Cost